Idemitsu Kosan Co., Ltd. · TSE:5019

Idemitsu Kosan — Q1 FY2024 Earnings Presentation

47 slides from Idemitsu Kosan's earnings presentation, Aug 6, 2024

Slide 1: Presentation on Results for the 1st Quarter FY2024
Presentation on Results for the 1st Quarter FY2024 August 6, 2024 Idemitsu Kosan Co.,Ltd.
Slide 2: Table of Contents
Table of Contents ◼ Highlights ◼ Results for the 1Q FY2024 ◼ Progress on the Medium-Term Plan ◼ Reference ✓ Financial results ✓ Volume ✓ Crude/product price and operation ✓ Business overview 2
Slide 4: Results for the 1Q FY2024
Results for the 1Q FY2024 ◼ Summary ✓ Operating + equity income (segment income) increased by ¥77.4 billion y-o-y, mainly due to the inventory impact under the rising trend in crude oil prices ✓ Segment income excluding inventory impact increased by ¥24.8 billion due to the positive impact of time-l
Slide 5: Results for the 1Q FY2024
@Results for the 1Q FY2024 €& idemitsu
Slide 6: Topics: Trends in Petroleum Demand and Sales
Topics ◼ Trends in Petroleum Demand and Sales ✓ Gasoline demand decreased due to less ownership of gasoline-powered vehicles and improved fuel efficiency. Diesel oil demand also decreased due to streamlined logistics ✓ Jet fuel demand has been on a recovery trend since COVID-19 FY2022 FY2023 1Q FY20
Slide 7: Operating Environment
Operating Environment Dubai Crude Australian Coal Exchange Rate [USD/bbl] [USD/ton] [JPY/USD] Oil Price Spot Price (USD) 95.0 360.0 160.0 FY2024 FY2023 330.0 155.9 155.0 90.0 300.0 270.0 150.0 85.3 86.7 85.0 247.8 148.6 240.0 147.9 83.6 145.0 144.6 210.0 80.0 81.3 180.0 140.0 77.8 160.7 137.4 150.0
Slide 8: Overview
Overview ◼ Crude Oil/Coal/Exchange Rate [USD/bbl, USD/ton, JPY/USD] 1Q FY2023 1Q FY2024 Change Crude Oil (Dubai) 77.8 85.3 +7.5 +9.6% Crude Oil (Brent)* 81.3 83.2 +2.0 +2.4% Australian Coal Spot Price* 247.8 125.8 (122.1) (49.3%) Exchange Rate (TTM) 137.4 155.9 +18.5 +13.5% *Brent prices and Austral
Slide 9: Segment Information
Segment Information ◼ Operating ＋ Equity Income [¥ billions] 5/14 full-year 1Q FY2023 1Q FY2024 Change forecasts FY2024 Petroleum 13.7 95.8 +82.1 +597.8% 102.0 Excluding inventory impact 18.4 47.8 +29.4 +159.3% 102.0 Basic Chemicals (1.4) 7.5 +8.8 － 26.0 Functional Materials 5.5 7.8 +2.3 +41.5% 31.0
Slide 10: Segment Information
Segment Information ◼ Factors Affecting Operating + Equity Income (excluding inventory impact, y-o-y) [￥billions] Performance Core products chemicals, Vietnam, margin Inventory etc. etc. (time-lag) impact, etc. Volume Power, Consolidated etc. Norway Price Non-core adjustment, Volume products Export
Slide 11: Segment Information: Petroleum
Segment Information [Petroleum] YoY+¥29.4bn (1Q FY23：¥18.4bn 1Q FY24：¥47.8bn) [Y-o-y change in Petroleum sales volume [Trends in Domestic Petroleum Product Margin*] (core products)] *Average margin of gasoline, diesel oil, kerosene, and heavy oil A (domestic spot –crude oil) [Thousand KL] (YoY) [￥/L
Slide 12: Segment Information
Segment Information [Basic Chemicals] YoY+¥8.8bn (1Q FY23: -¥1.4bn 1Q FY24: ¥7.5bn) ✓ Increased as a result of sales volume recovery due to the less regular maintenances than the previous year, etc. ✓ Product margin improved in total [USD/ton] Product 1Q FY2023 1Q FY2024 Change Price Margin Price Ma
Slide 13: Segment Information: Oil E&P and Coal
Segment Information [Oil E&P] YoY +¥0.8 bn [Coal] YoY -¥16.5 bn (1Q FY23：¥5.7 bn 1Q FY24：¥6.5 bn) (1Q FY23：¥34.7 bn FY24：¥18.3 bn) <Crude Oil Production Volume <Coal Production Volume and Brent Crude Oil Price Trends> and Australian Coal Spot Price Trends> [Thousand BOE] [USD/bbl] [Thousand tons] [U
Slide 14: Balance Sheet
Balance Sheet [¥ billions] 3/31/2024 6/30/2024 Change 3/31/2024 6/30/2024 Change Total Current Cash and Deposits 139.3 133.4 (5.9) Liabilities 2,192.5 2,087.0 (105.5) Receivables, Total Fixed Inventory, etc. 2,777.5 2,776.2 (1.3) Liabilities 1,007.3 1,022.2 +14.9 Total Current Assets 2,916.8 2,909.6
Slide 15: Progress on the Medium-Term Plan
◼Progress on the Medium-Term Plan *The icons on topics (from next page) related to progress in the medium-term plan shows business areas below Energy Diverse resource conservation Smart Yorozuya one step ahead /circulation solutions 15
Slide 16: Progress on the Medium-term Plan (1/5)
Topics related to Progress on the Medium-term Plan (1/5) ◼ Achieved the world’s highest performance in continuous electrolytic synthesis of ammonia proceeding at room temperature and normal pressure ~Significant progress toward carbon-free ammonia production process~ ✓ Ammonia does not emit CO2 duri
Slide 17: Progress on the Medium-term Plan (2/5)
Topics related to Progress on the Medium-term Plan (2/5) ◼ Tokuyama Complex moving forward towards commencing production of 250,000 KL/year of SAF in FY2028 ✓ HEFA technology of SAF production project completed FS, transitioning to FEED Bird’s-eye view of Tokuyama Complex, the planned construction s
Slide 18: Progress on the Medium-term Plan (3/5)
Topics related to Progress on the Medium-term Plan (3/5) ◼ Idemitsu and Chugai Pharmaceutical began demonstration experiment to resources used plastics generated at pharmaceutical manufacturing plants ✓ Planning to use chemical recycling technology to produce oil at Idemitsu’s subsidiaries, using us
Slide 19: Progress on the Medium-term Plan (4/5)
Topics related to Progress on the Medium-term Plan (4/5) ◼ Investment in Anaconda Systems Limited ~promoting effective utilization of organic waste and resource circulation~ ✓ Investment in a Canadian start-up company through Idemitsu’s 100% subsidiary ✓ Anaconda’s technology enables the treatment a
Slide 20: Progress on the Medium-term Plan (5/5)
Topics related to Progress on the Medium-term Plan (5/5) ◼ Idemitsu Kosan, ENEOS, Toyota, and MHI commenced study toward introduction and spread of carbon-neutral fuel for automobiles ~the first step of collaboration and partnership across industries~ [Scope of joint study by the four companies] (1)
Slide 22: Financial Results: Net Sales by Segment
Financial Results Financial Results ◼ Net Sales by segment [¥ billions] 1Q FY2023 1Q FY2024 Change Petroleum 1,422.9 1,875.2 +452.4 +31.8% Basic Chemicals 126.6 159.4 +32.8 +25.9% Functional Materials 122.3 127.3 +5.0 +4.1% Power and Renewable Energy 32.2 27.5 (4.7) (14.6%) Resources* 114.2 69.7 (44
Slide 23: Quarterly Segment Income (Cumulative)
Financial Results Financial Results ◼ Quarterly segment income (cumulative, exc. inventory impact) [¥ billions] FY2023 FY2024 1Q 2Q 3Q 4Q 1Q Petroleum 18.4 105.0 114.1 167.2 47.8 Equity income 4.9 3.8 6.9 9.9 5.1 Basic Chemicals (1.4) 12.0 21.4 22.0 7.5 Equity income (0.6) (1.0) (1.8) (4.0) (0.3) Fu
Slide 24: Quarterly Segment Income (Q on Q)
Financial Results Financial Results ◼ Quarterly segment income (Q on Q, exc. inventory impact) [¥ billions] FY2023 FY2024 1Q 2Q 3Q 4Q 1Q Petroleum 18.4 86.6 9.0 53.1 47.8 Equity income 4.9 (1.0) 3.1 3.0 5.1 Basic Chemicals (1.4) 13.4 9.4 0.7 7.5 Equity income (0.6) (0.4) (0.8) (2.2) (0.3) Functional
Slide 25: Sensitivity
Financial Results Sensitivity ◼ Major items affecting operating profit by changes in assumptions (2-4Q) Income Assumptions Range of Index Segment impact Major Factors (FY2024) fluctuation (¥ billions) Crude oil price 85.0$/bbl ±10$/bbl ±21.0 Time-lag, fuel cost Singapore ー ±5$/bbl Petroleum ±24.0 Ex
Slide 26: Sales Volume: Petroleum
Volume Sales Volume ◼ Petroleum [thousand KL,％] 1Q FY2023 1Q FY2024 Change Gasoline 3,084 2,984 (100) (3.2%) Naphtha 101 104 +3 +2.5% Jet Fuel 589 608 +19 +3.2% Kerosene 455 390 (65) (14.3%) Diesel Oil 2,434 2,478 +45 +1.8% Heavy Fuel Oil A 728 674 (55) (7.5%) Heavy Fuel Oil C 580 421 (159) (27.4%)
Slide 27: Sales Volume
Volume Sales Volume ◼ Basic Chemicals [kt,%] 1Q FY2023 1Q FY2024 Change Basic Chemicals 714 769 +55 +7.7% ◼ Functional Materials [KKL,kt,%] 1Q FY2023 1Q FY2024 Change Lubricants 279 274 (5) (1.9%) Performance Chemicals 148 138 (9) (6.3%) *Lubricants include sales overseas ◼ Power/Renewable Energy [M
Slide 28: Production Volume
Volume Production Volume ◼ Resources (Oil E&P) [KBOED,%] 1Q FY2023 1Q FY2024 Change Vietnam 16.0 15.5 (0.4) (2.6%) Norway 15.9 13.5 (2.4) (15.1%) Total('000BOED) 31.8 29.0 (2.8) (8.9%) Total('000BOE) 2,866 2,641 (225) (7.9%) *The numbers reflect our rights and ownership ratios based on our equity sh
Slide 29: Crude Oil Prices (Dubai and Brent)
Crude price Crude Oil Prices(Dubai and Brent) [USD/bbl] 130 Brent Dubai 110 90 70 50 30 10 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 29
Slide 30: Gasoline-Crude Oil (Domestic)
Product market price Gasoline-Crude Oil(Domestic spot price and spread) [Price :JPY/L] [Spread：JPY/L] 140 25 Spread 120 Crude oil Gasoline 20 100 15 80 60 10 40 5 20 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 30
Slide 31: Diesel-Crude Oil (Domestic)
Product market price Diesel-Crude Oil(Domestic spot price and spread) [Price :JPY/L] [Spread：JPY/L] 140 25 Spread 120 Diesel oil Crude oil 20 100 15 80 60 10 40 5 20 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 31
Slide 32: Gasoline-Crude Oil (Singapore)
Product market price Gasoline-Crude Oil(Singapore spot price and spread) [Price :USD/bbl] [Spread：USD/bbl] 140 25 Spread Gasoline 120 Crude oil 20 100 15 80 60 10 40 5 20 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 32
Slide 33: Diesel-Crude Oil (Singapore)
Product market price Diesel-Crude Oil(Singapore spot price and spread) [Price :USD/bbl] [Spread：USD/bbl] 140 25 Spread Diesel oil 120 Crude oil 20 100 15 80 60 10 40 5 20 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 33
Slide 34: Para-Xylene, Mixed Xylene-Naphtha
Product market price Para-Xylene, Mixed Xylene-Naphtha (price and spread) [Price :USD/ton] [Spread：USD/ton] 1,400 600 PX spread Mx spread Naptha PX MX 1,200 500 1,000 400 800 300 600 200 400 100 200 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 34
Slide 35: Styrene Monomer-Naphtha
Product market price Styrene Monomer-Naphtha (price and spread) [Price :USD/ton] [Spread：USD/ton] 1,600 800 SM spread Naptha SM 1,400 700 1,200 600 1,000 500 800 400 600 300 400 200 200 100 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 35
Slide 36: Operational Data
Operation Operational Data ◼ Refineries Utilization 1Q 1Q FY2020 FY2021 FY2022 FY2023 FY2023 FY2024 66％ 78% 77% 83％ 78％ 64％ [71％] *on BCD basis including regular maintenances *Refining operation at Yamaguchi Refinery (120KBD) was terminated in March 2024. The official capacity was changed after July
Slide 37: Forecasts for FY2024 (unchanged from 5/14)
Forecasts for FY2024 (unchanged from the announcement on 5/14) ◼ Crude Oil/Coal/Exchange Rate [USD/bbl, USD/ton, JPY/USD] FY2023 FY2024 Change Crude Oil (Dubai) 82.3 85.0 +2.7 +3.2% Crude Oil (Brent)* 82.6 85.0 +2.4 +2.8% Australian Coal Spot Price* 172.8 125.0 (47.8) (27.7%) Exchange Rate (TTM) 144
Slide 38: Segment Information for FY2024
Segment Information for FY2024 (unchanged from the announcement on 5/14) ◼ Operating ＋ Equity Income [¥ billions] FY2024 FY2023 FY2024 Change (medium- term plan) Petroleum 219.7 102.0 (117.7) (53.6%) 102.0 Excluding inventory impact 167.2 102.0 (65.2) (39.0%) 102.0 Basic Chemicals 22.0 26.0 +3.9 +17
Slide 39: Overview of the Company
Business Overview Overview of the Company FY2023, actual or as of the end of March 2024 ∎ Petroleum Segment ∎ Functional Materials Segment  Refining Capacity 825 KBD *1,2) (Lubricants, Performance Chemicals, Electronic  Domestic fuel oil sales volume Materials, Bitumen (High Performance Asphalt),
Slide 40: Petroleum Segment
Business Overview Petroleum Segment [KB/D] Refining Operating Company Refinery RH FCC RFCC FLG Equity Ratio Capacity Japan Idemitsu Hokkaido 150 42 33 Kosan Chiba 190 40 45 Aichi 160 60 50 Showa Yokkaichi Yokkaichi 255 45 61 75.0% Sekiyu Toa Oil Keihin 70 42 27 100.0% 825 187 42 189 27 Overseas Nghi
Slide 41: Basic Chemicals Segment
Business Overview Basic Chemicals Segment [mil tons/year] Production Capacity for core products Operating Company Complex/Factory/Refinery Styrene Equity Ratio Ethylene Para-Xylene Mixed Xylene Monomer Japan Idemitsu Kosan Chiba 0.374 0.265 0.210 Aichi 0.357 0.170 Tokuyama 0.623 0.214 0.340 Showa Yo
Slide 42: Functional Materials Segment (1/2)
Business Overview Functional Materials Segment (1/2) Lubricants Performance Chemicals ◆Product categories ◆Product categories ・Automotive lubricants (engine oil, etc.) ・Engineering plastics, adhesives materials, derivative ・Grease products, solvents and functional materials ・Industrial lubricants (h
Slide 43: Functional Materials Segment (2/2)
Business Overview Functional Materials Segment (2/2) Electronic Materials Bitumen (High Performance Asphalt) ◆Product categories ◆Asphalt manufacturer which aims to develop state-of-the-art ・Organic EL materials technologies ・Display semiconductor materials etc. ・Recycling, longer life, carbon neutr
Slide 44: Power/Renewable Energy Segment
Business Overview Power /Renewable Energy Segment Stake Owned Power generation capacity* Power Category Power Plant Operating Company (%) (10,000 KW) Solar 34 domestic locations Idemitsu, other ー 18.7 Biomass Keihin Biomass Power Plant (Kanagawa) Keihin Biomass Power 100 4.9 Tosa Power Plant (Kochi)
Slide 45: Resources Segment (Gas and Oil E&P)
Business Overview Resources Segment (Gas and Oil E&P) Business Overview Production Oil/Gas Reserves 1. Producing and selling crude oil/gas in Vietnam and Norway ◆Reserves *1,2 [million BOE] 2. Exploration and development of gas in Vietnam and other 150 parts of Southeast Asia to shift to production
Slide 46: Resource Segment (Coal)
Business Overview Resource Segment (Coal) Business Overview Business Structure Reforms [Business Strategy] ◆Idemitsu Green Energy Pellets (black pellets) ◆Stable supply and profit maximization by leveraging the highly competitive Boggabri Mine ・CO2 emissions can be reduced by replacing coal with ◆En
Slide 47: 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

Idemitsu Kosan — Q1 FY2024 Earnings Presentation on 6ix

Idemitsu Kosan — Q1 FY2024 Earnings Presentation

Slide 1: Presentation on Results for the 1st Quarter FY2024

Slide 2: Table of Contents

Slide 3: Highlights

Slide 4: Results for the 1Q FY2024

Slide 5: Results for the 1Q FY2024

Slide 6: Topics: Trends in Petroleum Demand and Sales

Slide 7: Operating Environment

Slide 8: Overview

Slide 9: Segment Information

Slide 10: Segment Information

Slide 11: Segment Information: Petroleum

Slide 12: Segment Information

Slide 13: Segment Information: Oil E&P and Coal

Slide 14: Balance Sheet

Slide 15: Progress on the Medium-Term Plan

Slide 16: Progress on the Medium-term Plan (1/5)

Slide 17: Progress on the Medium-term Plan (2/5)

Slide 18: Progress on the Medium-term Plan (3/5)

Slide 19: Progress on the Medium-term Plan (4/5)

Slide 20: Progress on the Medium-term Plan (5/5)

Slide 21: Reference

Slide 22: Financial Results: Net Sales by Segment

Slide 23: Quarterly Segment Income (Cumulative)

Slide 24: Quarterly Segment Income (Q on Q)

Slide 25: Sensitivity

Slide 26: Sales Volume: Petroleum

Slide 27: Sales Volume

Slide 28: Production Volume

Slide 29: Crude Oil Prices (Dubai and Brent)

Slide 30: Gasoline-Crude Oil (Domestic)

Slide 31: Diesel-Crude Oil (Domestic)

Slide 32: Gasoline-Crude Oil (Singapore)

Slide 33: Diesel-Crude Oil (Singapore)

Slide 34: Para-Xylene, Mixed Xylene-Naphtha

Slide 35: Styrene Monomer-Naphtha

Slide 36: Operational Data

Slide 37: Forecasts for FY2024 (unchanged from 5/14)

Slide 38: Segment Information for FY2024

Slide 39: Overview of the Company

Slide 40: Petroleum Segment

Slide 41: Basic Chemicals Segment

Slide 42: Functional Materials Segment (1/2)

Slide 43: Functional Materials Segment (2/2)

Slide 44: Power/Renewable Energy Segment

Slide 45: Resources Segment (Gas and Oil E&P)

Slide 46: Resource Segment (Coal)

Slide 47: Precaution statement about forecasts