Idemitsu Kosan Co., Ltd. · TSE:5019

Idemitsu Kosan — Q1 FY2017 Earnings Presentation

32 slides from Idemitsu Kosan's earnings presentation, Aug 14, 2017

1. Slide 1: Presentation on Results for the 1st Quarter FY 2017

   Presentation on Results for the 1st Quarter FY 2017 Idemitsu Kosan Co.,Ltd. August 14, 2017

2. Slide 2: Table of Contents

   Table of Contents 1. FY 2017 1st Quarter Financials (1) Overview (2) Segment Information 2. Reference Materials Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 1

3. Slide 3: Crude Oil Price Trends

   Crude Oil Price Trends <Monthly Dubai Crude Oil Price Trends and Assumptions for Performance Forecasts> (US$/Bbl.) FY 2016 Actual FY 2017 Actual 5/15 Assumption Assumption Announced on 5/15: US$50/Bbl. FY 2017 1Q Average: US$49.8/Bbl. FY 2016 1Q Average: US$43.2/Bbl. Apr May Jun Jul Aug Sep Oct Nov

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

   JPY/USD Exchange Rate (TTS) Trends <Monthly JPY/USD (TTS) Trends and Assumptions for Performance Forecasts> (JPY/USD) FY 2017 1Q Average: JPY112.1/USD Assumption Announced on 5/15: JPY110/USD FY 2016 1Q Average: JPY109.1/USD FY 2016 Actual FY 2017 Actual 5/15 Assumption Apr May Jun Jul Aug Sep Oct N

5. Slide 5: Overview

   Overview <FY 2017 1st Quarter Results> ■Operating income increased by ¥10.0 billion year-on-year to ¥34.6 billion due to increased earnings in the resources segment resulting from pricing changes, among other factors ■Ordinary income increased by ¥14.9 billion year-on-year to ¥39.1 billion, and as a

6. Slide 6: 1. FY 2017 1st Quarter Financials

   1. FY 2017 1st Quarter Financials

7. Slide 7: (1) Overview

   (1) Overview 1) Crude Oil / Exchange Rates (Units: $/Bbl., $/Ton, ¥/$) FY2016 1Q FY2017 1Q Change Crude Oil (DB FOB) 43.2 49.8 6.6 15.2% Crude Oil (Brent) 33.9 53.8 19.9 58.7% Naphtha Price (Customs) 395 482 86 21.9% Thermal Coal (NEWC) 51.0 83.2 32 63.1% Exchange Rate (TTS) 109.1 112.1 3.0 2.7% * B

8. Slide 8: (2) Segment Information

   (2) Segment Information 1) Operating Income (Units: ¥ billions) FY2016 1Q FY2017 1Q Change Petroleum Products 17.3 6.9 (10.4) (60.2%) (Excluding inventory impact) 10.7 12.9 2.2 20.5% Petrochemical Products 9.3 10.2 0.9 9.7% Resources (1.3) 18.4 19.7 － Oil Exploration and Production (1.5) 6.8 8.3 － C

9. Slide 9: (2) Segment Information

   (2) Segment Information 2) Factors Causing Changes in Operating Income (Year-on-year) (Units: ¥ billions) Petroleum Products (10.4) Increase in Product Margins +4.6 Increased Refinery Fuel Costs, etc. (2.4) Inventory Impact (12.6) Petrochemical Products +0.9 Increase in Product Margins, etc. +0.7 Ma

10. Slide 10: 2. References

    2. References

11. Slide 11: Table of Contents

    Table of Contents 1. Financial Reporting 3. Sales and Production (1) Net Sales by Segment 4. Foreign Exchange (2) Extraordinary Gains/Losses 5. Market Conditions (3) Consolidated Balance Sheet 6. Capacity Utilization at Refineries 2. Sensitivity 7. Number of Service Stations Copyright©2017 Idemitsu

12. Slide 12: 1. Financial Reporting

    1. Financial Reporting (1) FY 2017 1Q Net Sales by Segment (Units: ¥ billions) FY2016 1Q FY2017 1Q Change Petroleum Products 508.4 631.1 122.6 24.1% Petrochemical Products 107.1 114.3 7.2 6.7% Resources 51.2 72.2 21.0 41.0% Oil Exploration and Production 15.8 19.2 3.4 21.4% Coal, etc. 35.4 53.0 17.6

13. Slide 13: 1. Financial Reporting

    1. Financial Reporting (2) Extraordinary Gains/Losses (Units: ¥ billions) FY2016 1Q FY2017 1Q Change Gain on Sale of Fixed Assets 0.0 0.0 0.0 Gain on Sale of Affiliate Stock 0.0 0.0 0.0 Other 0.0 0.0 0.0 Total Extraordinary Gains 0.1 0.0 (0.1) Loss on Sale and Depletion of Fixed Assets 0.8 0.3 (0.5)

14. Slide 14: 1. Financial Reporting

    1. Financial Reporting (3) Consolidated Balance Sheet (Units: ¥ billions) 3/31/2017 6/30/2017 Change 3/31/2017 6/30/2017 Change Cash and Deposits 91.4 141.6 50.2 Payables 331.6 296.7 (34.9) Receivables 327.4 290.1 (37.3) Short-term Borrowings 471.6 473.6 2.0 Inventory 430.9 421.5 (9.4) Other Current

15. Slide 15: 2. Sensitivity

    2. Sensitivity (1) Impact of a US$1/bbl. Increase in Crude Oil Prices on FY Earnings Increase in refinery Petroleum (￥0.6 billion) fuel costs, etc. Products Inventory impact ￥3.5billion ￥2.9 billion Oil Exploration & Production ￥1.4 billion (2) Impact of a 1 JPY/USD Depreciation on FY Earnings Incre

16. Slide 16: 3. Sales and Production

    3．Sales and Production (1)Sales Volume (Domestic Fuel Oil Sales Volume: Non-consolidated) （Units:Thousand KL,% ） FY 2016 1Q FY 2017 1Q Change Gasoline 1,936 1,929 (7) (0.4%) (Premium-Unleaded) 215 208 (7) (3.3% ) (Regular-Unleaded) 1,720 1,721 0 0.0% Naphtha 50 65 15 29.6% Jet Fuel 399 448 49 12.4%

17. Slide 17: 3. Sales and Production

    3．Sales and Production （2）Sales Volume (Petrochemical Products: Non-consolidated) (Units:Thousand tons, %) FY 2016 1Q FY 2017 1Q Change Petrochemical Products-Total 826 801 (26) (3.1%) (Basic Chemicals) 816 790 (26) (3.2%) (Performance Chemicals) 11 11 (0) (0.3%) （3）Sales Volume (Lubricants) （Units:

18. Slide 18: 3. Sales and Production

    3．Sales and Production （4）Oil Exploration & Production – Production Volume (including Gas) （Units:Thousand BOED） FY 2016 1Q FY 2017 1Q Change Norway 35.1 38.7 3.6 10.2% United Kingdom 4.3 5.3 1.0 22.6% Vietnam 0.3 0.0 (0.3) (100.0%) Total('000BOED) 39.7 44.0 4.2 10.7% Total('000BOE) 3,616 3,958 342

19. Slide 19: 4. Foreign Exchange (1) USD

    4．Foreign Exchange （1）USD Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 16

20. Slide 20: 4. Foreign Exchange (2) Norwegian Krone

    4．Foreign Exchange （2）Norwegian Krone Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 17

21. Slide 21: 4. Foreign Exchange (3) Norwegian Krone

    4．Foreign Exchange （3）Norwegian Krone Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 18

22. Slide 22: 4. Foreign Exchange (4) Australian Dollar

    4．Foreign Exchange （4）Australian Dollar Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 19

23. Slide 23: 4. Foreign Exchange (5) Australian Dollar

    4．Foreign Exchange （5）Australian Dollar Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 20

24. Slide 24: 5. Market Conditions (1) Crude Oil Prices (Dubai and Brent)

    5．Market Conditions （1）Crude Oil Prices (Dubai and Brent) Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 21

25. Slide 25: 5. Market Conditions (2) Gasoline, Crude Oil CIF

    5．Market Conditions （2）Gasoline, Crude Oil CIF (Prices and Spreads) Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 22

26. Slide 26: 5. Market Conditions (3) Diesel Oil – Crude Oil CIF

    5．Market Conditions （3）Diesel Oil – Crude Oil CIF (Prices and Spreads) Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 23

27. Slide 27: 5. Market Conditions (4) Paraxylene, Naphtha

    5．Market Conditions （4）Paraxylene, Naptha (Prices and Spreads) Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 24

28. Slide 28: 5. Market Conditions (5) Styrene Monomer, Naphtha

    5．Market Conditions （5）Styrene Monomer, Naptha (Prices and Spreads) Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 25

29. Slide 29: 6. Capacity Utilization at Refineries

    6．Capacity Utilization at Refineries Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 26

30. Slide 30: 7. Number of Service Stations

    7．Number of Service Stations Copyright©2017 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 27

31. Slide 31: 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

32. Slide 32: Slide 32

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