The Iwatani Story
Transcript of The Iwatani Story
Copyright © Iwatani Corporation. All rights reserved.
<8088>
(Update:May 21, 2021)
The Iwatani StoryIwatani Corporation
(LPG Tanker: GALAXY RIVER)
1
Corporate Profile
Become a person needed by society,
as those needed by society can prosper.
Established : May 5, 1930
Paid-in Capital : 35,096 million yen
Consolidated Net Sales : 635.5 billion yen (March 31, 2021)
Affiliated companies : 230 (Consolidated 101) (March 31, 2021)
Number of Employees : 10,130(Consolidated) (March 31,2021)
Corporate Philosophy
Iwatani Group
2
Our Business
Operating Income【Consolidated】
29.9Billion yen (FY 2020)
Net Sales【Consolidated】
635.5Billion yen (FY 2020)
Energy
46.6%
Industrial Gases& Machinery
27.5%
Materials
21.5%
Agri-Bio &Foods
3.8%
Agri-Bio & Foods
2.5%
Others
0.6%
Note) Others and adjustments are excluded.
Energy
52.7%
Industrial Gases& Machinery
30.3%
Materials
14.5%
・LPG ・Electric power sales and city gas safety service ・Gas equipment and lifestyle products
・Portable gas cooking stoves and cassette gas canisters
・Industrial gasses ・Gas facilities and industrial machinery
・Functional plastic products ・Resources and advanced materials・Metals ・Electronic Materials
・Frozen foods ・Equipment for Agriculture・Seed pigs and equipment for livestock
Core business “Gas & Energy”
Energy Division
Industrial Gases & Machinery Division
Materials Division
Agri-Bio & Foods Division
3
B to C Customer base B to B Customer base
Gas&Energy
Company History
Agri-Bio & Foods
MaterialsEnergy Industrial Gases & Machinery
2017Entered city gas retail market
2016Entered retail power business
2014Began importing LPG from U.S.A.
1981Began importing LPG from Saudi Arabia
1969Commenced sales of “Cassette-Feu” portable cooking stove
1953Commenced sales of Marui Propane
1988Established Iwatani Agrigreen Co., Ltd.Strengthened Agri-Bio business
1974Began selling frozen foods
2014Opened Japan’s first commercial hydrogen station Iwatani HydrogenStation in Amagasaki, Hyogo
2013Began importing helium from Qatar1978Japan’s first industrial liquefied hydrogen manufacturing plant completed
1975Cold Air Products Ltd. establishedEntered field of industrial gas production
1958Osaka Hydrogen Industries Ltd. (now Iwatani Industrial Gases Corp.) established and full-fledged hydrogen business commenced
2020Launched JV company “R PLUS JAPAN Ltd,”to develop recycling used plastics.
2010Commenced Bio based PET resins
1997Acquired Doral Mineral Industries Ltd. (Australia)
1953Commenced handling of gas pipes, joints, valves and other metal products, and rutile sand (covering) and other raw materials
1952Commenced handling of synthetic resins
1945 Iwatani Corporation established
1941 Commenced handling of hydrogen
1930 Naoji Iwatani Shoten established; commenced sales of oxygen, carbide and welding rods
- Utilized LN2 to enter frozen food business
- Began Livestock business with providing LPG for heating Poultry houses
⇒Developing into pig breeding business
- Began supplying raw materials to customer plants purchasing industrial gases from Iwatani
2019Entered Hydrogen station business in the U.S.
1960Began selling brooder used for henhouses
1982Established Iwatani Camborough Co., Ltd. (Signed contract with PIC)Strengthened Livestock business
2012Commencedsmartphone related parts
4
64
33
5470
96
117 120
171
82
134
155
195
174192
127
215
268294
299
322
344
365
△42△17
2731
41
23
55 52
25
55 61
105
80
104
61
123
165 175192
209
232243
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
VD2002 PLAN05 PLAN08 PLAN12 PLAN15 PLAN18
(Forecast)
Net Ordinary Profit (100 million yen)
Profit attributable to owners of parent (100 million yen)
Profitability is constantly increasing.
Progress in Profitability
PLAN20
5
1,988 1,933
1,869 1,856 1,865 1,870
1,793 1,791 1,717
1,589 1,661
1,593
1,513
1,610
1,417 1,365
1,352
1,320 1,263 1,265
961
419 392 404 448
480
562 599 602
541 609 633
711
831
967
1,090 1,147
1,344
1,544
1,654
1,822
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2,424
4.10
4.41 4.16
3.60 3.41
2.95 2.71
2.66
2.79
2.29
2.30 1.96
1.64
1.44
1.09 0.98 0.84
0.73 0.64
0.55 0.23
(At year’s end)
VD2002 PLAN05 PLAN08 PLAN12 PLAN15 PLAN18
As financial standing improves, Net DER has been reduced to 0.23.
Progress in Financial Standing
Net Debt Equity Ratio
Interest-bearing Debt (100 million yen)
Equity (100 million yen)
PLAN20
6
109 107 105 99 101 97 108 115119
114 123 127 123 132 133 145162 163 170
183192
205
87
164
82
156
129118
132 142 129132 132
149
181155
188
248
333
262
332346 337
440
120
185
135
158199 175
254
207
332
277
144
314
244
226
430
361372
285
391
402
487
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Depreciation cost InvestmentOperating CF(100 million yen)
(Forecast)
*~2014; Figures for capital expenditure and depreciation expenses cover only property, plant, and equipment. 2015~; Figures for capital expenditure totalize fixed assets, intangible assets (goodwill excluded), and investments in securities.
Progress in investment
Positively making investment with growth strategy
7
3015 15 15 20 25 25 25 25 25 30 35 35 35 35 40 40
5565
75 75 7515
20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
※2
※1 Payout ratio and Dividend per share (2000 to 2016) is calculated based on the consolidation of shares (5 shares → 1 share) on October 1, 2017.
※2 Including commemorative dividend: 15 yen (Before stock consolidation :3 yen) ※3 Including commemorative dividend: 20 yen
Returns to Shareholders
Dividendpolicy
・ Paying continuous and stable dividends
・ Returning our profits appropriately in consideration for our performance
and business situation
October, 2017
Stock consolidation
5 shares → 1 share
Dividend per share (yen) ※1
Payout ratio (%)
(Forecast)
27.6%24.2% 25.2%
58.5%
22.7% 23.9%
48.8%
36.0%
23.8%
16.2%
21.3%
16.5%
27.8%
15.9%11.9%
15.4%16.6%
22.3%
17.4% 17.8%
※3
8
LPG
(household)
45%
LPG
(Industrial)
8%
LPG
(Oversea)
8%
Petroleum-
related
9%
Cartridge Gas
products
7%
Gas
equipment,
etc.
23%
Energy Division (Overview)
Energy Division
Net sales
296.1billion yen
(FY 2020)
Energy equipment
Gas stove Ene-Farm
Drinking water delivery
“Fuji no Yusui” water
Net sales component ratio
Petroleum-related
・LNG・Kerosin・Gasoline
LPG
Import LPG~Home delivery
Cartridge Gas products
Cassette gas canister
Portable gas cooking stove
9
(*1) Source: Sangyouhoudoushuppan.Co.,Ltd.(2020)Agency for Natural Resources and Energy (2020)
City gas*2
30.99m
All electric*3
6.83m
LPG *1
24.18m
(*3) Source: FUJI KEIZAI CO., LTD. (2018)
Energy Division (LPG Business Overview)
(*2) Source: Agency for Natural Resources and Energy (2020)
(*4) Source: Ministry of Economy, Trade and Industry (2014)
LPG used by 40% of households《Japan LPG Consumption Household Ratio》
(*4) (*4)
《World LPG Consumption Household Ratio》
U.K. GermanyOther
LPG household customers
24.18million
Nationwide retailers
Iwatani customers
3,200
3.20 million
Non-Marui Distributors ‘ Group
1,800
subsidiary distributors
21*
1,400
Marui distributors’ Group
Direct sales
customers
1.01million
As of March 31, 2021
Iwatani as No. 1 in LPG
Retail Wholesale
Industry Rank
1st/17,170 1st/1,100
Share 4.2% 13.2
%
Marui Gas household customers
1,010K 3,200K
LPG LPG
City gas City gas
《Iwatani LPG Sales》(UNIT:households)
17,170
Iwatani customers(retailers)
Iwatani customers
(household customers)
95% of Japan by areais covered by LPG supply
10
31.9%
21.1%
11.6%
14.5%
16.0%
5.0%
1~300
301~600
601~1000
1001~2500
2501~4999
Over 5000
19,02418,516
17,805 17,603 17,170
2016 2017 2018 2019 2020
《LPG Industry Structure in Japan》
(1,100)
(17,170)
Wholesalers
Primary Distributors
Retailers
《Retailer Trends》
(6 )Import
Refinery
LPG
Transport
Transport
Necessary distribution rationalization at retail part
《Household LPG Cost Structure》
(Unit: Companies)
(Source: Ministry of Economy, Trade and Industry,
“Retailers and Safety Agencies in Japan”)
(Source: Agency for Natural Resources and Energy)
《Distribution of Retailer Customers》
(Source: Agency for Natural Resources and Energy“FY2018 Petroleum Products Supply and Demand Optimization Survey: Oil Gas Distributor/Retailer Business Conditions Survey Report”)
1-300
301-60053% have 600 or fewer
(UNIT:households)
Wholesalers・transportation・safety management・meters checking・labor cost etc.
Primary distributors
Retailers
(Unit: Companies)
Costly
13%
17%
70%
Energy Division (LPG Business Overview)
11
Increase Direct Customers
35
66 70 72 74 75 76 78 80 81 83 86 88 9099 100
101
1999 2005200620072008200920102011201220132014201520162017201820192020
<Direct Distributors’ Customer Trends>
Household
/Commercial
Wholesale
/Industrial
・Strengthen profitability through retail rationalizationcentering on M&A
Primary Distributors
Integrated Structure from Primary Distribution to retail
Nationwide platformLogistics
Safety management
Sales network
Expand Wholesale Business
・Developing customers base through brand power and high safety levels
General Assembly of the organization for Marui Gas supply chain shops
Import terminal /Primary terminal
4 sites
Secondary
terminal
3 sites
Cylinder Filling station
99 sites
<Iwatani LPG Procurement/Supply System>
Gas-Producing Countries
(Unit: 10,000s)
Energy Division (LPG Business Strategy)
285 sales offices,3,000 salespeople,3,000 vehicles
142 distributioncenters,2,000 people,2,000 vehicles
12
Gas stove Gas detector
Sales/Safety Networks Developed in LPG Business
《Scenario for B to C business expansion》
Expand customer base by Strengthen city gas business
Development of Diverse Life-related Products and Services
Increase sales per customer
Water heater “fujina” cosmetics“Fuji no Yusui” water
Alala Series
Energy Division (B to C Business Strategy)
B to C Businesses
Shareholding Ratio49%
Shareholding Ratio51%
<Direct sales customer base>
LPG : 1,001K households
City gas * : 1,410K householdsElectricity : 30K households
(As of March 31, 2021) *Kinki & Chubu area
Initiative
2
Initiative1
Initiative1
Initiative
2
LPG direct sales customersCity gas and electricity Customers*
Sales
Network
Taking Advantage of Nationwide Platforms
DistributionNetwork
SafetyNetwork
LP
GG
as e
qu
ipm
en
t &
con
su
mer
pro
du
cts
Sale
s per
cust
om
er
customer 1,010,000households
customer 1,440,000households
Sale
s per
cust
om
er
Increase sales per customer
Increase sales per customer
Cit
y g
as s
afe
ty s
erv
ice &
Ele
ctr
icit
y
Expand customer base
Existing New
*Calculated by Iwatani from the announced target numbers of city gas customersobtained by electric power companies
Gas e
qu
ipm
en
t &
con
su
mer
pro
du
cts
Expand customer base
14
0
15
30
45
60
200920102011201220132014201520162017201820192020
Cartridge Gas Business
Iwatani Gas Appliances(Zhuhai) Co., Ltd.
Iwatani Cartridge Gas Corporation
・Increase in sale in Japan and China ・Expand business in the U.S. and Southeast Asia
Promote Demand with New Product Development
New Product DevelopmentCapability
High Quality and Brand Power
from Integrated Manufacturing/Sales
MillionsCassette Gas Canister Sales
in China
(Japan)
Portable gas cooking stoves 82%
Cassette Gas canisters 63%
“Yakimaru” Cassette Gas-Type Smokeless Meat Barbeque Grill
<Recent Products Developed>
“Tough Maru” Portable cooking stove
(As of March 31, 2021)
Energy Division (Cartridge Gas Business Strategy)
( Sales volume (global) )
portable gas cooking stoves 4,471Kunits
Cassette Gas canisters 134Munits
(As of March 31, 2021)
Expand business in the U.S. and Southeast Asia
15
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
($/t)
LPG import price (CP)
FY 2020 : Ave. $421/t
FY 2019 : Ave. $450/t
FY 2018 : Ave. $519/t
LPG (Propane)Import price (CP)
<CP: Contract Price>
・Saudi Aramco new price system (CP system) has been applied since October 1994.
・Tends to rise in winter-demand season.
16
Legal stock period: 40 days
3 months
Rising Price Sell inexpensive stockat high price
Profit Rises
Falling Price
Profit Falls
②From LPG import to sale takes
3 monthsPremise
Impact of LPG Import Price
Oil-producing country
Iwatani LPG import terminal End user
Sell expensive stockat low price
*The actual impact on performance varies depending on inventory volume, sales timing (season), sales volume and other factors.
Cost
Selling price
(3 months)
Cost
Selling price
(3 months)
①Wholesale price is based
on LPG Import Price
Wholesale Price LPG Import Price※
※ The price consists of “CP” (from the middle east) and
“MB” (from the U.S).
∝
Short-term impact of market fluctuations(If LPG import price fluctuations return to the original level, the impact is ±0.)*
LPG Import Price Fluctuations
LPG import price
LPG import price
17
73.5%
6.9%
6.1%
4.6%
2.5%2.4%
2.0%
2.0%
Propane & Butane
LPG Varieties:
Propane C3H8Primarily residential/commercial
Butane C4H10Primarily industrial/automotive
Good Portability
LiquefiedVaporized
Easily liquefied by pressure and cooling;
in volume to 1/250
High Calorie
LPガス 都市ガス
24,000 kcal/m3
11,000 kcal/m3
LPG City Gas
(Source: Japan LP Gas Association)
Total CO2 emissions from production to combustion
Clean
0.89 1.00
1.28
0.85
(Petroleum=1.00)
LPG-related Data
75% Imported; 73% of Imports from U.S.
Source: Japan LP Gas Association (2020)
(FY2019)
(FY2019)
Countries Exporting LPG to Japan
Domestic Production
(Oil Refining)24.2%
Imports75.8%
Qatar
Saudi Arabia
Abu Dhabi
U.S.
Other
Kuwait
LPG Import Ranking
(FY2019)
Top Share in Wholesale/Retail SectorsLPG Wholesaler Ranking
by Annual Sales Volume (FY2019)
Source: Sekiyukagakushimbunsya.(2021)
Rank ImporterVolume(k tons)
Share
1 ENEOS Globe 3,162 29.5%
2 Astomos Energy 2,881 26.9%
3 GYXIS 1,773 16.5%
4 Japan Gas Energy 1,229 11.5%
5 Iwatani 817 7.6%
6 Tokyo Gas 454 4.2%
Rank WholesalerVolume(k tons)
1 Iwatani 1,751
2 ITOCHU ENEX 525
6 Mitsuuroko Vessel 390
9 Nippon Gas 311
12 TOKAI 299
Rank RetailerLPG
Residential Customers
1 Iwatani 1,000,000
2 Nippon Gas 877,000
3 TOKAI 651,682
4 ITOCHU ENEX 551,000
LPG Retailer Ranking
by No. of Direct Customers (FY2019)
LPG Demand by Application (k tons)
Demand Centers on Residential/Commercial and Industrial(Source: Japan LP Gas Association)
FY2015(Actual)
FY2016(Actual)
FY2017(Actual)
FY2018(Actual)
LPG Oil Coal City gas
7,635 7,591 7,723 7,382 7,259
2,839 2,790 2,778 2,686 2,749
821 779 716 636 567
1,339 1,213 1,422 1,360 1,344
1,929 1,730 1,988 1,993 2,133
170 301 182 145 81
Residential/Commercial Industrial
Automotive Citygas
Chemical feed Electric power
14,80915,394 14,733 14,404
FY2019(Actual)
Australia14,132
Source: Sekiyukagakushimbunsya.(2021) Source: Sekiyukagakushimbunsya.(2021)
Canada
18
Nitorogen
21%
Oxygen
6%
Argon
7%Carbon
Dioxide
7%Hydrogen
15%
Helium
20%
Other
gases
24%
Industrial Gases & Machinery
Net sales
174.6billion yen
(FY2020)
Industrialgases
Gas equipmentand others
Weldingequipment
Gas supply facilities
Gas equipment and others
Liquefied gas trucks Welding robots
Sheet-metal welding machines
Semiconductor equipment
Welding materials
H2 70%
Market Share of Specialty Gases
(including LH2)
No.1 in Japan
No.1 in Japan
No.1 in Japan
Overseas sales ratio
25%
Source: Iwatani estimated based onGas Georama in Japan 2021
Net sales of industrial gasesAir
separation Gas
34%
Specialty Gases42%
Industrial gas domestic market share
Air separation gas49%
Specialty gases 13%
Industrial Gases & Machinery Division (Overview)
Source: Gas Georama in Japan 2021
Nitrogen28%
Oxygen12%
Argon9%
Helium4%
Other gases38%
CarbonDioxide
5%Hydrogen
4%
Net sales
98.3billion yen
(FY2020)
LH2 100%
He 50%
FY2020
525.4billion yen
56%44%
Pharmaceutical equipment
19
Industrial Gases & Machinery (Material & Use)
※Compressed hydrogen
Source: Gas Georama in Japan 2021
※Liquefied carbon dioxide
semiconductor
N2
O2
Ar
CO2
H2
Cryogenicdistillation
Reformpurification
Refinement
Imports He
Air
Hydrocarbon from oil
Material
Byproduct gases from
chemical plants, etc.
Variety
Gas wells
Air separation gases
Specialty gases
Byproduct gases from oil
& chemical plants, etc.
Purification
Share by applicationScale of Domestic market
145.5
62.5
47.7
27.3
18.4
23.1
(billion yen)
iron & steel
iron & steel
chemicals
chemicals
chemicals
automobiles
automobiles
automobiles
machinery
machinery
others
others
others
metal-working
metal-working
electrical
appliances
electricalappliances
food
iron & steel
welding coolingbeverages others
electronics metal-working chemicals glass others
optical fibers welding
balloons cryogenics
analysis
machinery
chemicals
leak tests
iron & steel
others
20
0
50
100
150
200
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Industrial use
Liquefied hydrogen
Byproduct gases
Fossil fuels
Transport
Energyuse
Iwatani’s Hydrogen Business
Compressed hydrogen
Industrial Gases & Machinery Division (Hydrogen Business Overview)
Sources
Uses
(Millions of Nm3)
Hydrogen Sales Volume in Japan
Source: Gas Georama in Japan
Manufacturing Hydrogen plants (LH2, Compressed H2)
Hydro Edge
:launched
IwataniIndustrial Gases
Chiba Plant:launched
Yamaguchi Liquid
Hydrogen:launched
Liquefied hydrogen
Compressed hydrogen
IwataniShare
35%
(Forecast)
Yamaguchi Liquid
Hydrogen1LIne added
Iwatani
Share
70%
Top share in Japan/Only one supplier of liquefied hydrogen
Hydro Edge
1 Line added
21
Industrial Gases & Machinery Division (Hydrogen Business Strategy)
液化水素サプライチェーンの構築Industrial applications Energy applications
Expand sales of liquefied hydrogen (LH2)
- Create an energy market
FCV
Build more hydrogen refueling stationsdomestic and overseas.
53
4
2017年度 2020年度
stations
Involved in
40%■Iwatani’s
domestic stations■Iwatani’s
overseas stations
Key characteristics of LH2
Ease of mass transport/storage
High purity
more efficient to transport
Approx.
12 times
Hydrogen applications
Glassmaking(Optical fiber,quartz glass)
Space development(Rocket fuel)
LH2 onlyBright annealing additives for giving metal surfaces a mirror-like shine
Oxyhydrogen burners for
making clear, non-fogging glass
Heat-treating metals
Semiconductors, electronics
Diluting source gases and creating
atmospheres
- Expand the customer base by promoting the characteristics of LH2
FY2020 FY2023
Purity99.9999%
FCV : 800,000 units
FC Buses : 1,200 units
Forklifts : 10,000 units
H2 demand : 3,000k ton
2030’s goal
FC Bus
FC Forklift*10k ton = 11k N㎥
Basic Hydrogen Strategy
Green Growth Strategy
22
Production/Storage Transport Use
LH2 production base
Build up LH2 supply chain
- Strengthen LH2 production capacity
Iwatani Industrial Gases Chiba Plant
- Acquire competitive hydrogen sources with
Carbon dioxide free
Yamaguchi Liquid Hydrogen
2 lines
2013: 1 line went into operation2017: 1 line added
1 line
In operation since 2009
Hydro Edge 3 lines
(Shunan City,Yamaguchi Prefecture)
(Sakai City,Osaka Prefecture)
(Ichihara City,Chiba Prefecture)
2006: 2 lines went into operation2020: 1 line added
1 Line= 3,000 L/h
CO2-free hydrogen production using renewable energy
Lignite project in Australia
Australia
CCS: Capturing waste CO2
Received at Kobe Airport island ⇒
Distributed across the country
Japan
LH2 carrier
Electric power from renewable
energy
Hydrogen production/
storage
Hydrogen power
generation
Mobility(FCVs, etc.)
Industrial applications
Grid power
The Fukushima Plan for a New Energy Society
Industrial Gases & Machinery Division (Hydrogen Business Strategy)
Hydrogen project
23
LNG
LH2
Goals
Industrial Gases & Machinery Division(Expansion of the hydrogen business)
Hydrogen sources
Acquire large amounts of inexpensive, CO2-free hydrogen sources
Hydrogen import terminal
Shift from production to import/storage functions
Hydrogen useCreate hydrogen energy demands
CO2-freeNew
New New Energy conversion at industrial complexesLH2 terminals
Lignite + CCS
Oil + CCS
Overs
eas
Jap
an
Jap
an
Provided by Hystra
Provided by Kawasaki Heavy Industries,Ltd.
Provided by Kawasaki Heavy Industries,Ltd.
Caustic soda
Renewable energy
R&D Who?
Iwatani R&D CenterTechnology & Engineering DivisionOutside partner companies
Increase efficiency in hydrogen production/storage/transportation, develop its applications, enhance security-related technologies, and increase energy efficiency
Power plants(co-firing)
Industrial energy
Hydrogen reduction / Desulfurization
Industrial applications
Hydrogen stations
LH2 production in JapanElectrolysis using surplus power
Reforming / Modification
Refinement of by-product gasesProduce hydrogen to adjust surplus energy
Renewable energy
Lignite + CCS
Used PlasticsBio gas
24
Global Helium Production
Industrial Gases & Machinery Division(Helium Business Overview)
Procurement System
Qatar U.S.
Shanghai
Malaysia
Japan2 sites
Sales regionSupplierSupplier
Iwatani handling volume in Qatar: 8M m3/year
Contract period: 2013-2032
Helium Center
Procured from U.S. and Qatar
U.S. and Qatar account for 80% of global
production
Source:United States Geological Survey
Procurement capabilities/Top share in Japan
Helium Import Prices
U.S.
Qatar
Algeria
Australia
Russia
Poland
Canada
2020
Crude helium import price rising in Japan
SemiconductorsOptical fiber CryogenicsMRIs
Gas Helium Liquefied Helium
Main Applications for Helium
Used in cutting-edge fields where growth expected
Supply System
Highly efficient helium recovery by installation facilities
Stable supply by investing containers.
Osaka helium center
Tokyo helium center
helium container
helium truck
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2000 2005 2010 2015 2020
Yen/㎏
Source:Trade Statistics of Japan
25
Qatar
Saudi Arabia
Yemen
UAE
Oman
Industrial Gases & Machinery Division (Network)
<Overseas Network> <Domestic Network>
Gas centers: 21
Hydrogen plants: 11
Air separation gas plants: 9
Helium centers: 2
Other sites: 6
Industrial Gas Supply Sites Air separation gas plants
Gas centers
Operating companies, trading companies, representative offices
Helium centers
others Dalian Iwatani Gas Machinery Co., Ltd. (Air separation gases)(Hydrogen)
Shanghai Petrochem-Iwatani Gases Development Co., Ltd. (Carbon dioxide)
Jiaxing Iwatani Industrial Gases Co., Ltd. (Air separation gases , Helium gases)
Iwatani-SIG Industrial Gases Sdn. Bhd.
(Air separation gases)Gulf Helium Services W.L.L.
(Helium)
PT. Iwatani Industrial Gas Indonesia(Air separation gases)
Dalian Iwatani Trading Co., Ltd
Shanghai Iwatani Co., Ltd.
26
Materials Division (Overview)
Synthetic resins( PET resin ,Polypropylene)Plastic products Various films and sheet
Mineral sands (Zircon sand, Titanium raw materials)Ceramics raw materials (Rare earth, Zr compounds)Refractory raw materials, Biomass fuel
Stainless,Precision stainless steel, Aluminum, Non ferrous, High alloy, Metal processing
Electronic ceramics materialsBattery-related materialsDisplay related materials
Functional Plastic ProductsElectronic Materials
Metals
(Related industry)Beverage, Food, Daily commodity, Home electronics industry
(Related industry) Electronic component industry, Air conditioning equipment industry
(Related industry)Chemical products, CeramicAutomotive, Semiconductor industry
Air conditioner panel
(Related industry) Electronic industry
Resources & Advanced Materials
32%
Metals 33%
Functional Plastic
Products
23%
Net Sales
136.4 billion yen
FY 2020
Electronic Materials
12%
PET resin Film(Protective tape)
StainlessWire processing
Precision work
Minerals
Overseas sales ratio
25%
Smartphone related material
Raw materials for ceramics
Resources & Advanced Materials
27
Materials Division (Strategy)
Scale-up of resource business
Scale-up of environmental business
Sales expansion and development of advanced materials
●Expansion of mineral sands business・Acquisition of new mining area・Development of the next area
●Entry into new projects etc.
●Scale-up of PET resinsbusiness
・Sales expansion of Eco-friendly
PET resins・Development of 100% Bio
Based PET resins・Participation in business to develop recycling used plastics
●Sales expansion of biomass fuel
●Sales expansion of Battery-related Materials
●Shock absorption sheets for smartphones
・High-Function Metal materials for Electronics
●Development of the leading edge of electronic material
・Nano-Nickel ・Gallium oxide
●Strengthening and scale-up of metalprocessed products business
●Strengthening metal slitting business
●Scale-up of automobile-related materialsbusiness
Strengthening metal-processing business overseas
28
Zircon Sand (ZrSiO4)Use:Refractory, Sanitary ware, Zirconia, Abrasive materials,
Casting sand
Titanium Minerals (TiO2)Use:Titanium Dioxide pigment, Titanium metal,
Welding Materials
・ Sales into global market based on mining and processing operations・ Stable procurement for Japan’s market by relationship with suppliers
・Iwatani’s 100% subsidiary
・Mineral sands mining and mineral processing operations
Doral Mineral Sands Ltd
South Africa
Supplier
Materials Division (Mineral sands Business)
Canada
FY2019:Acquisition of KLPL※
※Keysbrook Leucoxene Pty LtdBusiness:Mining and sales of mineral sands
29
FY2020 FY2023
Biomass Fuel(PKS・Wood pellets)
Procurement capabilitiesof PKS in partnership with the major supplier in Southeast Asia
Materials Division (Eco Friendly Products )
Our Sales Plan
700 Kt
Bio based PET resins
Product capabilitiesto achieve the environmental load reduction
Aluminum catalyst PET resins
Sugarcanes
materials
PET resins with lower CO2 emissions
PET resins with exceptional recyclability
Excellent for the environmental PET Resins
260 Kt
●Power generation by using plant-derived organic resources (biomass)
●CO2 is emitted during combustion, but plants absorb CO2 through photosynthesis during the growth process ⇒ Carbon neutral
●Supply of high-quality PKS thorough quality management
●30% of ingredients are plant-derived
Carbon dioxide Sugar canes
Biomass MEG
Biomass PET
Plastic
Life Cycle
Absorption
Battery-related Next-Generation Automobiles
Procurement capabilities of Battery-related materials in partnership with one ofthe biggest suppliers in China
Increasing demand for Next-Generation Automobiles
●Sales expansion of Cobalt, Nickel and Aluminum foils etc.
560
1,230
2,443
Source : Yano Research Institute Ltd.
≪Forecast :Expansion Next generation Vehicles all over the world≫(Including FCV,EV and Hybrid)
●Join Battery Association for Supply Chain,being formed to strengthen internationalsupply chain competitiveness
Unit : Million car
PKS
Wood pellets
30
The cutting edge of electronic material developmentShock Absorption Sheets for Smartphones
Iwatani’s shock absorption material
Regular material
Iwatani’s uniqueShockAbsorptionmaterial
Materials Division (Advanced materials)
Material pulverization technology
Results of Iron Ball Drop Test
High adoption rate in organic EL smartphones,which require shock absorption
Electronic Component
Larger capacity/more compact
Requires refined material with low variation
Nano-nickel
High-Function Metal materials for Electronics
Treat variety of High-Function Metal materials
● High-Function materials for Next-Generation Automobiles,
for communication equipment
EV drive motor(Power steering,Brake)
Foldable organic El smartphones,5G communication equipment
●Nonmagnetic stainless steel●High strength stainless steel foils●High-Function copper alloy●Functional aluminum foils●Magnesium alloy
●Nano-Nickels
●Gallium oxide materials for semiconductors
Power semiconductors
Contributing to recycling-basedsociety by improved the efficiency
of energy in semiconductor
Requires new materials ,improved the efficiency of energy,
work and size
High purificationtechnology
Gallium oxide materialsFor semiconductors
31
Agri-bio & Foods Division (Overview)
Agri-Bio
Livestock
Foods
Agricultural materials,Agricultural equipment
Plant factoryPeat moss Flower containers
Seed pigs,Livestock equipment
Camborough pigs
Frozen foods (for commercial)
Frozen foods(for end-users)
Frozen processed meatFrozen vegetables
Foods
47%
Livestock
33%
Net sales
23.9billion yen(FY 2020)
Agri-Bio
20%
Camborough pigs farm
Frozen foods (delicatessen)
Processed seafood
32
Agri-Bio & Foods Division (Strategy)
・Diversification of suppliersfor stable supply
・Strengthening frozen foodsfor end-users in addition tofor wholesalers Share
13% ⇒ 20%
Foods
Frozen vegetables(for commercial)
LivestockStrengthening foods business
Increase share of breeding pig market
Iwatani Strength
・Proprietary freezing technology(“Fresh I” production method)
・Group sites in Japan and overseas・Relationship with various suppliers・Iwatani’s own quality assurance
system for safe and secure food supply
External Factors
・Increase in need for labor savingsdue to labor shortages
・Influence of TPP/EPA・Increase in need for restaurants
and ready-to-go food industriesdue to increase dual incomefamilies
Iwatani Strength External Factors
・High productivity of Camborough pigs・Extensive lineup of breeding facilities
and equipment・High quality quarantine management
system・Alliance with the large pig farm
・Large-scale consolidation and oligopolization by major producers
Camborough pigs Camborough pigs farm
Frozen vegetables(for end-users)
33
Transitioning to a CO2-Free Society
Hydrogen
ESG (Environment / Society / Governance)
Initiatives for Environment
Focusing on realization of a hydrogen energy society. Handling Biomass for renewable energy and PET resins.
・PKS (Palm Kernel Shells)・Kernel shells left over from palm oil production・Used in biomass power generation・Carbon neutral, so reduces CO2 emissions
・Bio based PET resin・PET resin that uses plant-derived materials・Used as raw material for plastic (PET) bottles・Reduced use of fossil resources
and less CO2 emissions when incinerated
CO2 absorption CO2 emissions
<Carbon Neutral>
Kernel shells left over from palm oil production
・Construction of hydrogen stations for FCV
2020 2025 2030
40,000 200,000 800,000
・FCV Diffusion Target (from METI)
cf. FCV reduces CO2 emissions (700kg/year for one vehicle)
45% of stations in Japan are involved with Iwatani
(Unit: car)
Realizing a Sustainable Society
Biomass Fuel, Bio based PET resins
Encouraging the Shift to Alternative Fuels
Encouraging the shift from fossil fuels such as coal and petroleum to LPG and natural gas
・Total support for customers shifting to alternate fuels, from stable supply to equipment improvement and maintenance service
CFC-Free Dust Blower
No containing chlorofluorocarbons(CFCs)
・While the typical alternativefluorocarbon HFC-134a doesnot directly deplete the ozoneLayer, it has a very high globalwarming potential of 1,430.CFC-free dust blowers achievea global warming potential of1 or below.
Cogeneration system GHP
34
ESG (Environment / Society / Governance)
Building Energy Infrastructure to Support Local Communities
Stable Supply of “Warmth”
Construction of disaster-ready supply system
・Establishment of 50 core centers nationwide・Construction of supply system that will
function even in disaster situations
Formation of disaster rescue party
・Formation of Marui Gas Disaster Rescue Party consisting of certified LPG technicians (3,600)
・Deployed during emergencies to restore service・Integrated nationwide drill in October each year
Rigorous safety system
・Security and management of LPG terminals under unified Group standards
Useful as Disaster Readiness Provisions
The Cassette-Feu “Tafumaru Jr.” and “Fuji no Yusui”
・Appeal to consumers about the need to stockpiledisaster readiness provisions.
For Local Communities
Safety Patrol for children
・Local anti-crime activities with delivery vehicles
Greeting actions at the delivery and checking meters
CSR
Culture, Sports, Academic PromotionIwatani intends to continueworking together with local residents
NHK Symphony Orchestra
Iwatani CorporationAthletics Club
The Iwatani NaojiFoundation
Initiatives for Society
35
Our corporate philosophy is “Become a person needed by society, as those needed by society can prosper.”
In keeping with that philosophy, we have set forth a basic policy on corporate governance consisting of five elements
and it is endeavoring to develop a corporate governance structure to increase management soundness,
transparency, and efficiency.
Basic Policy
1.We will create an environment that allows shareholders toexercise their rights properly and will endeavor to ensurequality among shareholders.
2. We will respect the rights and positions of employees,customers, business partners, creditors, local communities and other stakeholders and endeavor to collaborate with them properly.
3. We will make appropriate disclosure in accordance withlegislation. For the purpose of ensuring transparency, we will endeavor to offer information other than the information to be disclosed pursuant to the legislation.
4. We will make impartial, transparent and swift decisions inan effort to ensure that the Board of Directors will properlyfulfill its functions and duties.
5. We will endeavor to hold constructive dialogs withshareholders in a bid for continuous growth and increasein corporate value.
For details, refer to the information on corporate governance on corporate report.(http://www.iwatani.co.jp/eng/investor/data/corporate_report.html)
Corporate Governance Structure
ESG (Environment / Society / Governance)
Initiatives for Governance
(As of April 1, 2021)
Copyright © Iwatani Corporation. All rights reserved. 36(Iwatani Hydrogen station at Shiba Koen)
Iwatani Corporation
IR, Corporate Planning & Coordination Department
TEL:+81-6-7637-3470 FAX:+81-6-7637-3333
Website:http://www.iwatani.co.jp/eng/investor/investor01.html
Contact
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