Idemitsu Kosan Co., Ltd. · TSE:5019

Idemitsu Kosan — Q3 FY2017 Earnings Presentation

40 slides from Idemitsu Kosan's earnings presentation, Feb 14, 2018

Slide 1: Presentation on Results for the 3rd Quarter FY 2017
Presentation on Results for the 3rd Quarter FY 2017 Idemitsu Kosan Co.,Ltd. February 14, 2018
Slide 2: Table of Contents
Table of Contents 1. FY 2017 3rd Quarter Results (1) Overview (2) Segment Information 2. Forecast for FY2017 Performance (1) Overview (2) Segment Information 3. Reference Materials Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 1
Slide 3: Crude Oil Price Trends
Crude Oil Price Trends <Monthly Dubai Crude Oil Price Trends and Assumptions for Performance Forecasts> (US$/Bbl.) Assumption for Current Forecast (Feb~ ) : FY 2016 Actual US$60/Bbl. FY 2017 Actual 11/14 Assumption FY 2017 3Q Average: US$53.2/Bbl. Assumption Announced on 11/14: US$55/Bbl. FY 2016 3Q
Slide 4: JPY/USD Exchange Rate (TTS) Trends
JPY/USD Exchange Rate (TTS) Trends <Monthly JPY/USD Exchange Rate Trends and Assumptions for Performance Forecasts> (JPY/USD) Assumption for Current Forecast (Feb~ ) : JPY 110/USD FY 2017 3Q Average: JPY112.7/USD Assumption Announced on 11/14: JPY110/USD FY 2016 Actual FY 2016 3Q Average: JPY107.6/U
Slide 5: Overview
Overview <FY 2017 3rd Quarter Results> ■ Operating income increased by ¥72.8 billion year-on-year to ¥156.4 billion, mainly due to improved petroleum product margins and increases in crude oil and coal prices ■ Ordinary income increased by ¥85.3 billion year-on-year to ¥169.9 billion yen. The sale o
Slide 6: 1. FY 2017 3rd Quarter Results
1. FY 2017 3rd Quarter Results
Slide 7: (1) Overview
(1) Overview 1) Crude Oil / Exchange Rates (Units: $/Bbl., $/Ton, ¥/$) FY2016 3Q FY2017 3Q Change Crude Oil (DB FOB) 44.9 53.2 8.3 18.5% Crude Oil (Brent) 41.8 51.9 10.1 24.2% Naphtha Price (Customs) 415 489 74 17.8% Thermal Coal (NEWC) 56.6 85.7 29 51.4% Exchange Rate (TTS) 107.6 112.7 5.1 4.7% * B
Slide 8: (2) Segment Information
(2) Segment Information 1) Operating Income (Units: ¥ billions) FY2016 3Q FY2017 3Q Change Petroleum Products 50.2 77.4 27.2 54.3% (Excluding inventory impact) 41.1 53.9 12.8 31.3% Petrochemical Products 27.0 30.1 3.1 11.6% Resources 5.5 46.8 41.4 755.2% Oil Exploration and Production 3.1 18.3 15.2
Slide 9: (2) Segment Information: Analysis of Factors Affecting Operating Income
(2) Segment Information 2) Analysis of Factors Affecting Operating Income (Year-on-year) (Units: ¥ billions) Petroleum Products +27.2 Increase in Product Margins, etc. +30.5 Increased Refinery Fuel Costs, etc. (17.7) Inventory Impact +14.4 Petrochemical Products +3.1 Increased Margins/Sales Volume,
Slide 10: 2. Forecast for FY2017 Performance
2. Forecast for FY2017 Performance
Slide 11: (1) Overview
(1) Overview 1) Crude Oil / Exchange Rates (Units: $/Bbl., $/Ton, ¥/$) Assumptions Nov 14 Forecast Revised Forecast Difference (February onward) Crude Oil (DB FOB) 52.6 54.9 2.3 4.4% 60.0 Crude Oil (Brent) 54.9 54.3 (0.6) (1.1%) - Naphtha Price (Customs) 490 513 23 4.7% 585 Thermal Coal (NEWC) 88.0
Slide 12: (2) Segment Information
(2) Segment Information 1) Operating Income (Units: ¥ billions) Nov 14 Forecast Revised Forecast Difference Petroleum Products 65.0 99.0 34.0 52.3% (Excluding inventory impact) 65.0 71.0 6.0 9.2% Petrochemical Products 35.0 37.0 2.0 5.7% Resources 57.0 66.0 9.0 15.8% Oil Exploration and Production 2
Slide 13: (2) Segment Information: Factors Affecting Operating Income
(2) Segment Information 2) Analysis of Factors Affecting Operating Income (vs. 11/14 Forecasts) (Units: ¥ billions) Petroleum Products +34.0 Increase in Product Margins +18.0 Increased Refinery Fuel Costs, etc. (12.0) Inventory Impact +28.0 Petrochemical Products +2.0 Increase in Product Margins, FX
Slide 14: 3. Reference Materials
3. Reference Materials
Slide 15: Table of Contents
Table of Contents 1. Financial Reporting 3. Sales and Production (1) Net Sales by Segment (1) Sales/Production Volume (2) Extraordinary Gains/Losses (2) Sales/Production Volume Forecast (3) Consolidated Balance Sheet 4. Foreign Exchange 2. Sensitivity 5. Market Conditions 6. Capacity Utilization at
Slide 16: FY 2017 3Q Net Sales by Segment
1. Financial Reporting (1)-1 FY 2017 3Q Net Sales by Segment (Units: ¥ billions) FY2016 3Q FY2017 3Q Change Petroleum Products 1,728.0 2,047.1 319.1 18.5% Petrochemical Products 320.4 357.2 36.8 11.5% Resources 165.7 209.2 43.6 26.3% Oil Exploration and Production 52.2 59.5 7.2 13.8% Coal, etc. 113.
Slide 17: FY 2017 Net Sales Forecast by Segment
1. Financial Reporting (1)-2 FY 2017 Net Sales Forecast by Segment (Units: ¥ billions) Nov 14 Forecast Revised Forecast Difference Petroleum Products 2,820.0 2,850.0 30.0 1.1% Petrochemical Products 430.0 450.0 20.0 4.7% Resources 290.0 290.0 0.0 0.0% Oil Exploration and Production 75.0 73.0 (2.0) (
Slide 18: Extraordinary Gains/Losses
1. Financial Reporting (2) Extraordinary Gains/Losses (Units: ¥ billions) FY2016 3Q FY2017 3Q Change Gain on Sale of Fixed Assets 1.4 1.7 0.2 Gain on Sale of Affiliate Stock 0.0 12.1 12.1 Other 0.6 0.2 (0.4) Total Extraordinary Gains 2.1 14.0 11.9 Loss on Sale and Depletion of Fixed Assets 2.4 1.5 (
Slide 19: Consolidated Balance Sheet
1. Financial Reporting (3) Consolidated Balance Sheet (Units: ¥ billions) 3/31/2017 12/31/2017 Change 3/31/2017 12/31/2017 Change Cash and Deposits 91.4 169.7 78.3 Payables 331.6 405.2 73.6 Receivables 327.4 412.0 84.6 Short-term Borrowings 471.6 404.9 (66.7) Inventory 430.9 497.1 66.2 Other Current
Slide 20: Sensitivity
2. Sensitivity (1) Impact of a US$1/bbl. Increase in Crude Oil Prices(Feb~) Increase in refinery Petroleum (￥0.1billion) fuel costs, etc. Products Inventory impact ￥1.0 billion ￥0.9billion Oil Exploration & Production - (2) Impact of a 1 JPY/USD Appreciation(Feb~) Decrease in refinery Petroleum ￥0.0
Slide 21: Sales Volume (Domestic Fuel Oil)
3．Sales and Production (1)－1.Sales Volume (Domestic Fuel Oil Sales Volume: Non-consolidated) sand KL,% ）（Units:Thousand KL,% ） FY 2016 3Q FY 2017 3Q Change Gasoline 6,206 6,043 (163) (2.6%) (Premium-Unleaded) 668 641 (27) (4.0% ) (Regular-Unleaded) 5,538 5,402 (136) (2.5% ) Naphtha 170 220 50 29.4%
Slide 22: Sales Volume (Petrochemical Products, Lubricants)
3．Sales and Production （1）－2.Sales Volume (Petrochemical Products: Non-consolidated) d tons, %) (Units:Thousand tons, %) FY 2016 3Q FY 2017 3Q Change Petrochemical Products-Total 2,468 2,528 59 +2.4% (Basic Chemicals) 2,435 2,493 58 +2.4% (Performance Chemicals) 33 35 2 +4.7% （1）－3.Sales Volume (Lub
Slide 23: Oil Exploration & Production and Coal Production Volume
3．Sales and Production （1）－4.Oil Exploration & Production – Production Volume (including Gas) and BOED）（Units:Thousand BOED） FY 2016 3Q FY 2017 3Q Change Norway 36.1 34.1 (2.0) (5.6%) United Kingdom 5.0 4.4 (0.6) (12.3%) Vietnam 0.3 0.0 0.3 (100.0%) Total('000BOED) 41.4 38.5 (2.9) (7.1%) Total('000
Slide 24: Sales Forecasts (Domestic Fuel Oil)
3．Sales and Production （2）－1.Sales Forecasts (Domestic Fuel Oil Sales Volume: Non-consolidated) （Units:Thousand KL,% ） Nov 14 Revised Difference Forecast Forecast Gasoline 7,910 7,910 0 0.0% (Premium-Unleaded) 850 840 (10) (1.2% ) (Regular-Unleaded) 7,060 7,070 10 0.1% Naphtha 260 280 20 7.7% Jet Fu
Slide 25: Sales Forecasts (Petrochemical Products, Lubricants)
3．Sales and Production （2）－2.Sales Forecasts (Petrochemical Products: Non-consolidated) (Units:Thousand tons, % ) Nov 14 Revised Difference Forecast Forecast Petrochemical Products-Total 3,470 3,470 0 0.0% (Basic Chemicals) 3,420 3,420 0 0.0% (Performance Chemicals) 50 50 0 0.0% （2）－3.Sales Forecast
Slide 26: Production Volume Forecasts (Oil and Coal)
3．Sales and Production （2）－4.Oil Exploration & Production – Production Volume Forecasts (including Gas) （Units:Thousand BOED） Nov 14 Revised Difference Forecast Forecast Norway 32.8 33.4 0.6 1.8% United Kingdom 4.6 3.3 (1.3) (28.4%) Vietnam 0.0 0.0 0.0 0.0% Total('000BOED) 37.4 36.7 (0.7) (1.9%) Tot
Slide 39: 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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Idemitsu Kosan — Q3 FY2017 Earnings Presentation on 6ix

Idemitsu Kosan — Q3 FY2017 Earnings Presentation

Slide 1: Presentation on Results for the 3rd Quarter FY 2017

Slide 2: Table of Contents

Slide 3: Crude Oil Price Trends

Slide 4: JPY/USD Exchange Rate (TTS) Trends

Slide 5: Overview

Slide 6: 1. FY 2017 3rd Quarter Results

Slide 7: (1) Overview

Slide 8: (2) Segment Information

Slide 9: (2) Segment Information: Analysis of Factors Affecting Operating Income

Slide 10: 2. Forecast for FY2017 Performance

Slide 11: (1) Overview

Slide 12: (2) Segment Information

Slide 13: (2) Segment Information: Factors Affecting Operating Income

Slide 14: 3. Reference Materials

Slide 15: Table of Contents

Slide 16: FY 2017 3Q Net Sales by Segment

Slide 17: FY 2017 Net Sales Forecast by Segment

Slide 18: Extraordinary Gains/Losses

Slide 19: Consolidated Balance Sheet

Slide 20: Sensitivity

Slide 21: Sales Volume (Domestic Fuel Oil)

Slide 22: Sales Volume (Petrochemical Products, Lubricants)

Slide 23: Oil Exploration & Production and Coal Production Volume

Slide 24: Sales Forecasts (Domestic Fuel Oil)

Slide 25: Sales Forecasts (Petrochemical Products, Lubricants)

Slide 26: Production Volume Forecasts (Oil and Coal)

Slide 27: Foreign Exchange (1) USD

Slide 28: Foreign Exchange (2) Norwegian Krone

Slide 29: Foreign Exchange (3) Norwegian Krone

Slide 30: Foreign Exchange (4) Australian Dollar

Slide 31: Foreign Exchange (5) Australian Dollar

Slide 32: Market Conditions (1) Crude Oil Prices (Dubai and Brent)

Slide 33: Market Conditions (2) Gasoline, Crude Oil CIF

Slide 34: Market Conditions (3) Diesel Oil – Crude Oil CIF

Slide 35: Market Conditions (4) Paraxylene, Naphtha

Slide 36: Market Conditions (5) Styrene Monomer, Naphtha

Slide 37: Capacity Utilization at Refineries

Slide 38: Number of Service Stations

Slide 39: Precaution statement about forecasts

Slide 40: Slide 40