Idemitsu Kosan Co., Ltd. · TSE:5019

Idemitsu Kosan — Q1 FY2019 Earnings Presentation

28 slides from Idemitsu Kosan's earnings presentation, Aug 14, 2019

  1. Slide 1: Presentation on Results for the 1st Quarter FY2019

    Presentation on Results for the 1st Quarter FY2019 Idemitsu Kosan Co.,Ltd. August 14, 2019

  2. Slide 2: Table of Contents

    Table of Contents 1. FY 2019 1st Quarter Results (1) Overview (2) Segment Information 2. Reference Materials Copyright©2019 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 1

  3. Slide 3: 1. FY 2019 1st Quarter Results

    1. FY 2019 1st Quarter Results ・FY 2018(E): Estimate of the total of Idemitsu Kosan and Showa Shell Sekiyu on a 100% consolidated basis ・Segment information: Total of operating income and equity earnings of affiliates (Equity Income)

  4. Slide 4: Crude Oil Price Trends

    Crude Oil Price Trends <Monthly Dubai Crude Oil Price Trends and Assumptions for Performance Forecasts> (USD/Bbl.) FY 2018 Actual FY 2019 Actual FY 2018 1Q Average: US$72.1/Bbl. 5/15 Assumption Assumption Announced on 5/15: US$70.0/Bbl. FY 2019 1Q Average: US$67.4/Bbl. Apr May Jun Jul Aug Sep Oct No

  5. Slide 5: JPY/USD Exchange Rate (TTM) Trends

    JPY/USD Exchange Rate (TTM) Trends <Monthly JPY/USD (TTM) Trends and Assumptions for Performance Forecasts> (JPY/USD) Assumption Announced on 5/15: 110.0 JPY/USD FY 2019 1Q Average: 109.9 JPY/USD FY 2018 1Q Average: 109.1 JPY/USD FY 2018 Actual FY 2019 Actual 5/15 Assumption Apr May Jun Jul Aug Sep

  6. Slide 6: Overview

    Overview <FY 2019 1st Quarter Results> ■Operating income excluding inventory impact + equity income decreased by ¥48.7 billion year-on-year to ¥31.1 billion, mainly due to decreased earnings from the petroleum segment as a result of reduced refining margins impacted by declined crude prices as well

  7. Slide 7: (1) Overview

    (1) Overview 1) Crude Oil / Exchange Rates (Units: $/Bbl., $/Ton, ¥/$) FY 2018 1Q FY 2019 1Q Change Crude Oil (Dubai) 72.1 67.4 (4.7) (6.6%) Crude Oil (Brent) 66.8 63.2 (3.6) (5.3%) Naphtha Price (Customs) 619 566 (53) (8.5%) Thermal Coal (NEWC) 102.6 95.8 (6.8) (6.6%) Exchange Rate (TTM) 109.1 109.

  8. Slide 8: (2) Segment Information

    (2) Segment Information 1) Operating Income + Equity Income (Units: ¥ billions) FY 2018 1Q(E) FY2019 1Q Change Petroleum 73.0 5.2 (67.8) (92.9%) (Excluding inventory impact) 36.4 3.5 (32.9) (90.3%) Basic Chemicals 16.0 5.9 (10.1) (63.3%) Functional Materials 9.2 6.4 (2.7) (29.8%) Power and 0.4 0.8 0

  9. Slide 9: (2) Segment Information

    (2) Segment Information 2) Analysis of Factors Affecting Operating Income + Equity Income (Excluding inventory impact, year-on-year) (Units: ¥ billions) Synergies, Equity Income, etc. Margins, Sales ES Volume Business Price Product Exploration Margins Sales Costs, FX, etc. Volume, Performance etc. C

  10. Slide 10: Reference Materials

    Reference Materials

  11. Slide 11: Table of Contents

    Table of Contents １. Overview of the New 4. Sales and Production Integrated Company (1) Sales/Production Volume 2. Financial Reporting (1) FY 2019 Performance 5. Market Conditions Forecasts Announced 6. Refineries Utilization on May 15 (2) FY 2019 1st Quarter 7. Number of Service Results Stations 3.

  12. Slide 12: Overview of the New Integrated Company

    １．Overview of the New Integrated Company Functional Materials Petroleum Segment Segment Refining capacity: 945,000 BD *1 (Lubricants, performance chemicals, electronic ※１ materials, functional asphalt, agricultural- biotechnology, solid electrolyte) Domestic fuel oil sales volume: 43.0 million KL/ye

  13. Slide 13: Financial Reporting: FY 2019 Performance Forecasts

    ２．Financial Reporting (1) FY 2019 Performance Forecasts Announced on May 15 1) Crude Oil / Exchange Rates (Units: $/Bbl., $/Ton, ¥/$) FY2018(E) FY2019 Forecast Change Crude Oil (Dubai) 69.3 70.0 0.7 1.0% Crude Oil (Brent) 71.0 72.0 1.0 1.4% Naphtha Price (Customs) 621 650 29 4.7% Thermal Coal (NEWC)

  14. Slide 14: Financial Reporting: Forecast Segment Information

    ２．Financial Reporting (1) FY 2019 Performance Forecasts Announced on May 15 3) Segment Information (Operating Income + Equity Income) (Units: ¥ billions) FY2018(E) FY2019 Forecast Change Petroleum 79.8 78.0 (1.8) (2.3%) (Excluding inventory impact) 69.0 78.0 9.0 13.0% Basic Chemicals 50.4 45.5 (4.9)

  15. Slide 15: Financial Reporting: Net Sales by Segment

    ２．Financial Reporting (2) FY 2019 1st Quarter Results 1) Net Sales by Segment (Units: ¥ billions) FY 2018 1Q (E) FY 2019 1Q Change Petroleum 1,299.9 1,169.5 (130.3) (10.0%) Basic Chemicals 154.1 113.5 (40.6) (26.4%) Functional Materials 106.9 97.1 (9.8) (9.2%) Power and 34.6 29.3 (5.3) (15.4%) Renew

  16. Slide 16: Financial Reporting: Extraordinary Gains/Losses

    ２．Financial Reporting (2) FY 2019 1st Quarter Results 2) Extraordinary Gains/Losses (Units: ¥ billions) FY 2018 1Q (E) FY 2019 1Q Change Gain on Sales of Fixed Assets 0.2 1.9 1.7 Gain on Sales of affiliate Stock 0.2 0.0 (0.2) Gain on Transfer of business 2.3 0.0 (2.3) Other 6.4 18.6 12.2 Total Extra

  17. Slide 17: Financial Reporting: Consolidated Balance Sheet

    ２．Financial Reporting (2) FY 2019 1st Quarter Results ③連結貸借対照表 3) Extraordinary Gains/Losses (Units: ¥ billions) 4/1/2019 6/30/2019 Change 4/1/2019 6/30/2019 Change (23.9) Total Current (81.2) Cash and Deposits 141.7 117.8 Liabilities 1,781.2 1,700.0 Receivables, Total Fixed Inventory, etc. 1,677.8

  18. Slide 18: Sensitivity

    ３. Sensitivity (1) Impact of a US$1/bbl. Increase in Crude Oil Prices on FY Earnings Increase in refinery (￥1.0billion) Petroleum fuel costs, etc. Inventory impact ￥5.0 billion ￥4.0 billion Oil Exploration & Production ￥1.0 billion (2) Impact of a 1 JPY/USD Appreciation on FY Earnings Decrease in re

  19. Slide 19: Sales and Production: Petroleum Sales Volume

    ４. Sales and Production (1)－1.Sales Volume (Petroleum Segment) （Units:Thousand KL,%） FY 2018 1Q （E） FY 2019 1Q Difference Change Gasoline 3,708 3,513 (195) (5.3%) Naphtha 110 25 (85) (76.9%) Jet Fuel 1,287 1,293 6 0.5% Kerosene 530 578 49 9.2% Diesel Oil 2,758 2,665 (93) (3.4%) Heavy Fuel Oil A 851

  20. Slide 20: Sales and Production: Chemicals, Materials, Power Volumes

    ４. Sales and Production (1)－2.Sales Volume (Basic Chemicals Segment) (Units:Thousand tons, %) FY 2018 1Q（E） FY 2019 1Q Change Difference Basic Chemicals 1,116 1,047 (69) (6.2%) (1)－3.Sales Volume (Functional Materials Segment) （Units:Thousand KL,Thousand tons,%） FY 2018 1Q FY 2019 1Q Change Differen

  21. Slide 21: Sales and Production: Oil E&P and Coal Production

    ４. Sales and Production （1）－5.Oil E&P – Production Volume ,including Gas (Resources Segment) （Units:Thousand BOED） FY 2018 1Q FY 2019 1Q Change Difference Norway 28.8 24.0 (4.8) (16.7%) Total('000BOE) 2,589 2,156 (433) (16.7%) *Figures based on interest owned by Idemitsu's resource development subsi

  22. Slide 22: Market Conditions: Crude Oil Prices

    ５. Market Conditions （1）Crude Oil Prices (Dubai and Brent) Copyright©2019 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 21

  23. Slide 23: Market Conditions: Gasoline, Crude Oil CIF

    ５. Market Conditions （2）Gasoline, Crude Oil CIF (Prices and Spreads) Copyright©2019 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 22

  24. Slide 24: Market Conditions: Diesel Oil – Crude Oil CIF

    ５. Market Conditions （3）Diesel Oil – Crude Oil CIF (Prices and Spreads) Copyright©2019 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 23

  25. Slide 25: Market Conditions: Paraxylene, Mixed xylene, Naphtha

    ５. Market Conditions （4）Paraxylene, Mixed xylene, Naptha (Prices and Spreads) Copyright©2019 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 24

  26. Slide 26: Market Conditions: Styrene Monomer, Naphtha

    ５. Market Conditions （5）Styrene Monomer, Naptha (Prices and Spreads) Copyright©2019 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 25

  27. Slide 27: Refineries Utilization; Number of Service Stations

    ６．Refineries Utilization Capacity Utilization(%) BCD FY2015 FY2016 FY2017 FY2018 FY2019 1Q Idemitsu 86% 88% 88% 88% 80% Showa Shell 91% 85% 88% 93% ７．Number of Service Stations (Locations) FY2015 FY2016 FY2017 FY2018 FY2019 1Q Idemitsu 3,666 3,589 3,545 3,501 3,476 Showa Shell 3,193 3,123 3,028 2,96

  28. Slide 28: Precaution statement about forecasts

    Precaution statement about forecasts Any information about forecasts for the Company’s operating results, management strategy and management policy contained in this documents other than historical facts is prepared, according to judgments made by the top management of the Company based on informati

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