Idemitsu Kosan Co., Ltd. · TSE:5019
Idemitsu Kosan — Q2 FY2026 Earnings Presentation
59 slides from Idemitsu Kosan's earnings presentation, Nov 11, 2026
Slide 1: Presentation on Results for the 2nd Quarter FY2026
Presentation on Results for the 2nd Quarter FY2026 November 11, 2026
Slide 2: Table of Contents
Table of Contents ◼ Highlights ◼ Progress in the Medium-term Management Plan ◼ Results for the 2nd Quarter FY2026 ◼ Forecasts for FY2026 ◼ Reference • Income and Expenses Structure of Petroleum Segment • Financial results • Volume • Crude/product price and operation • Business overview Inspiring the
Slide 3: 20th Anniversary of Listing
20th Anniversary of Listing ◼ On October 24, 2026, Idemitsu marked the 20th anniversary of its listing ◼ While upholding the "people-centered management" principle established since our founding, we steadily implement our medium-term management plan even in an uncertain business environment, enhanci
Slide 4: Highlights
◼ Highlights Inspiring the future with energy and materials 4
Slide 5: Response to the Middle East Situation
Response to the Middle East Situation ◼ Despite continued uncertainty surrounding the Middle East, we are ensuring stable domestic supply while pursuing earnings growth by capturing changes in the external environment. As of August 2026 As of November 2026 (Current) Prospects for Continued alternati
Slide 6: Results for FY2026 2Q and Full-Year Forecast
Results for FY2026 2Q and Full-Year Forecast ◼ Results for FY2026 2Q Key Points of 2Q Results (excl. inventory impact) (¥ billion) Income before tax Income attributable Growth in overseas businesses and positive time-lag excluding financial expenses to owners of the parent impact in petroleum drove
Slide 7: Shareholder Return Policy
Shareholder Return Policy ◼ Plan to return 50% or more of FY2026 net income excl. inventory impact, in line with the return policy Dividends: Year-end dividend forecast of ¥22/share (¥4 increase). Progressive dividends with an annual floor of ¥44/share from FY2027 onward Share buyback*: Amount and t
Slide 8: Progress in the Medium-term Management Plan
◼ Progress in the Medium-term Management Plan Inspiring the future with energy and materials 8
Slide 9: Business Strategy Policy
Medium-term Management Plan (Excerpts) Business Strategy Policy ◼ Achieve sustainable growth through the three themes (GRIT, GROWTH, and CNX) and contribute to the resolution of social challenges Business strategy for enhancing corporate value Social challenges Ensuring energy security GRIT*2 By per
Slide 10: GRIT: Exploiting Existing Businesses
Medium-term Management Plan (Excerpts) GRIT: Exploiting Existing Businesses ◼ Persistently strengthen the value chain of existing businesses to achieve both “stable supply” and “high capital efficiency” Development / Procurement Refining / Manufacturing Logistics / Sales Profit before tax (FY2030) S
Slide 11: Safe and Stable Operations at Refineries 1/2
Progress on efforts to ensure Safe and Stable Operations at Refineries, Complexes, and Refining Companies 1/2 ◼ Aim to stably achieve utilization rates* of 90% or higher through measures that accelerate and advance existing initiatives Utilization Rates (BSD Basis) Accelerated and Advanced Measures
Slide 12: Safe and Stable Operations at Refineries 2/2
Progress on efforts to ensure Safe and Stable Operations at Refineries, Complexes, and Refining Companies 2/2 Background of Issues Previous Safe, stable operations through experienced employees’ high on-site skills, while strengthening facility and operation management systems Declining labor force,
Slide 13: Examples of Strengthening On-site Capabilities in Operation Management
(Reference) Examples of Strengthening On-site Capabilities in Operation Management ◼ Background: Fewer skilled on-site staff, reduced awareness and responsiveness, and uneven understanding of operations Visualizing On-site Skills (Quality/Quantity) Simulation Training Based on Veterans’ Expertise Ma
Slide 14: Progress in other GROWTH and CNX 1/2
Progress in other GROWTH and CNX 1/2 ◼ Progress in Solid Electrolytes ・ Construction of the production facility for lithium sulfide (an intermediate raw material) and the large-scale pilot facility for solid electrolytes is progressing smoothly ・ Both facilities are in the latter half of constructio
Slide 15: Progress in other GROWTH and CNX 2/2
Progress in other GROWTH and CNX 2/2 ◼ Established the U.S. lab for space-grade CIGS solar cells, strengthening collaboration with the U.S. market to accelerate commercialization • Opened a development laboratory at OASIS, an industry collaboration and innovation facility operated by the University
Slide 16: Progress in Underperforming Businesses 1/2
Progress in Underperforming Businesses 1/2 ◼ Status of Nghi Son Refinery (NSRP*), Vietnam ・ In 2Q FY2026, high utilization continued by securing crude oil mainly from outside the Strait of Hormuz in coordination with Japanese and Vietnamese authorities and sponsors; backed by strong overseas product
Slide 17: Progress in Underperforming Businesses 2/2
Progress in Underperforming Businesses 2/2 ◼ Basic Chemicals Business ・ Reached an agreement to consolidate the Chiba district ethylene plant into Mitsui Chemicals, Inc. in July 2027 ・ Reached an agreement to integrate the polyolefin business of Prime Polymer Co., Ltd. (a joint venture between Idemi
Slide 18: Results for the 2nd Quarter FY2026
◼ Results for the 2nd Quarter FY2026 Inspiring the future with energy and materials 18
Slide 19: Market Conditions
Market Conditions FY2026 FY2025 Dubai Crude Oil Price Australian Coal Spot Price Exchange Rate (USD) [USD/bbl] [USD/ton] [JPY/USD] 130 150 170 120 140 165 136.2 110 159.5 159.3 130 160 156.9 100 96.1 120 155 154.1 93.1 119.6 90 86.3 110 108.7 150 80 104.6 107.9 147.5 100.5 70.1 100 145 70 144.6 66.9
Slide 20: Overview
Overview ◼ Crude Oil/Coal/Exchange Rate [USD/bbl, USD/ton, JPY/USD] FY2025 2Q FY2026 2Q Change Crude Oil (Dubai) 68.4 94.6 +26.2 +38.3% Australian Coal Spot Price* 102.5 127.9 +25.4 +24.7% Exchange Rate (TTM) 146.0 159.4 +13.3 +9.1% *Australian coal spot prices are averages based on the calendar yea
Slide 21: Segment Information
Segment Information ◼ Income before tax excluding financial expenses (excl. inventory impact, YoY) [¥ billions] Resources +19.0 Functional Oil Coal Others Basic Power and Petroleum Chemicals Materials E&P 10.1 2.5 198.2 6.9 5.0 Renewables 9.0 47.0 (7.2) 125.0 FY2025 FY2026 2Q [+73.2] 2Q Inspiring th
Slide 22: Segment Information
Segment Information ◼ Factors Affecting Income before tax excluding financial expenses (excl. inventory impact, YoY) [¥ billions] FY2025 2Q FY2026 2Q Change Factors (excl. inventory impact) +：Time-lag +87.8 [previous year (14.0)→this year +73.8], Trading +36.6, Petroleum 83.4 130.3 +47.0 Product exp
Slide 23: Balance Sheet
Balance Sheet [¥ billions] 3/31/2026 9/30/2026 Change 3/31/2026 9/30/2026 Change Cash and Deposits 381.8 303.6 (78.3) Total Current Liabilities 2,685.7 3,401.1 +715.4 Receivables, Total Non-current Inventory,etc. 2,729.7 3,708.3 +978.6 Liabilities 1,094.0 1,095.7 +1.7 Total Current Assets 3,111.5 4,
Slide 24: Cash Flows
Cash Flows [¥ billions] Cash Flows from Operating Activities (339.4) Operating Income 425.7 Depreciation and Amortization 111.7 Change in Working Capital (646.3) Other (230.4) Cash Flows from Investing Activities (121.0) Purchase of PP&E and Intangibles (169.4) Other 48.4 Cash Flows from Financing A
Slide 25: Forecasts for FY2026
◼ Forecasts for FY2026 Inspiring the future with energy and materials 25
Slide 26: Forecasts for FY2026
Forecasts for FY2026 ◼ Crude Oil/Coal/Exchange Rate [USD/bbl, USD/ton, JPY/USD] May 12 Revised November Change Forecast Forecast Onward Crude Oil (Dubai) 81.3 91.8 +10.6 +12.9% 85.0 Australian Coal Spot Price* 126.1 131.9 +5.8 +4.6% 136.0 Exchange Rate (TTM) 151.3 157.2 +5.9 +3.9% 155.0 *Australian
Slide 27: Segment Information
Segment Information ◼ Income before tax excluding financial expenses (excl. inventory impact, compared to forecast announced in May) [¥ billions] Resources +15.0 Functional Oil Basic Materials Power and Coal E&P Petroleum Chemicals 18.0 Renewables 10.0 5.0 Others 10.0 240.0 85.0 (14.0) (14.0) 140.0
Slide 28: Segment Information
Segment Information ◼ Factors Affecting Income before tax excluding financial expenses (excl. inventory impact) [¥ billions] May 12 Revised Change Factors (excl. inventory impact) Forecast Forecast 1 Petroleum 105.0 190.0 +85.0 +()： Time-lag +69.0, Product exports/imports +37.0, Trading +30.0, NSRP*
Slide 29: Sensitivity
Sensitivity ◼ Major Items Affecting Income before Tax by Changes in Assumptions • Impact of the fluctuation is +¥29.0 billions excl. inventory impact and +¥121.0 billions incl. inventory impact in the situation of rising Crude oil price by +10$/bbl and changing exchange rate by +5¥/$ (The opposite m
Slide 30: Investment Status
Investment Status ◼ FY2026 investment expenditure forecast is ¥265.0 billion (unchanged from May 12 forecast) ◼ Approx. ¥150.0 billion spent as of 2Q [¥ billions] May 12 Current Change Forecast Forecast GRIT 127.0 127.0 ±0.0 GROWTH / CNX 123.0 123.0 ±0.0 Business Platform 15.0 15.0 ±0.0 Total 265.0
Slide 31: Reference
◼ Reference Inspiring the future with energy and materials 31
Slide 32: Safe and Stable Operations at Refineries
Progress on efforts to ensure Safe and Stable Operations at Refineries, Complexes, and Refining Companies ~FY2030 2030 Facility Improvements People & Work Style Reform Evolving Digital & AI Use Well-managed facilities Enhance execution and monitoring of Utilization rates Staffing slack & on-site cap
Slide 33: Points of Petroleum Segments
Points of Petroleum Segments Crude oil Sales Refining ◆ Domestic purchase Delivery from ◆ Exports Middle East Approximately 1months Point➁Sales Margin Point➂Utilization (Sales price minus Crude price) Improving utilization＝positive due to Point➀Time-lag increasing export volume or decreasing Sales P
Slide 34: Structure of Time-lag and Inventory Impact
Structure of Time-lag and Inventory Impact Example) Impact in Apr Time-lag Inventory impact Apr Cost excluding inventory Mar Refining and Arriving （close to actual payment） Purchase and sales this month Loading Cost including inventory crude oil （cost in financial statement） Stockpile 70 day’s crude
Slide 35: Stock Price/PBR Trends (Since April 2023)
Stock Price/PBR Trends (Since April 2023) [JPY] 2,000 Stock Price (Monthly average) 1,500 1,000 500 0 Apr-23 Oct-23 Apr-24 Oct-24 Apr-25 Oct-25 Apr-26 Oct-26 [x] 1.50 PBR (Monthly average) 1.00 IFRS （from Apr-26） 0.50 0.00 Apr-23 Oct-23 Apr-24 Oct-24 Apr-25 Oct-25 Apr-26 Oct-26 Inspiring the future
Slide 36: Supplementary Financial Data
Supplementary Financial Data ◼ Revenue by Segment [¥ billions] FY2025 FY2026 Change 2Q 2Q Petroleum 3,133.6 4,214.4 +1,080.7 +34.5% Basic Chemicals 235.1 330.6 +95.5 +40.6% Functional Materials 255.8 312.2 +56.3 +22.0% Power and Renewable Energy 54.3 47.8 (6.6) (12.1%) Resources* 96.9 144.2 +47.3 +4
Slide 37: Sales Volume 1/2
Sales Volume 1/2 ◼ Petroleum [thousand KL,％] FY2025 FY2026 Change 2Q 2Q Gasoline 6,240 5,905 (335) (5.4%) Naphtha 438 403 (34) (7.9%) Jet Fuel 1,217 1,283 +66 +5.4% Kerosene 666 747 +81 +12.2% Diesel Oil 4,838 4,838 +1 +0.0% Heavy Fuel Oil A 1,253 1,268 +15 +1.2% Heavy Fuel Oil C 797 769 (28) (3.5%)
Slide 38: Sales Volume 2/2
Sales Volume 2/2 ◼ Basic Chemicals [kt,%] FY2025 FY2026 Change 2Q 2Q Basic Chemicals 1,477 1,468 (10) (0.7%) ◼ Functional Materials [thousand KL,kt,%] FY2025 FY2026 Change 2Q 2Q Lubricants 531 535 +4 +0.8% Performance Chemicals 207 191 (16) (7.8%) *Lubricants include overseas licensee sales ◼ Power/
Slide 39: Production Volume
Production Volume ◼ Resources (Oil E&P) [KBOED,%] FY2025 FY2026 Change 2Q 2Q Vietnam 13.5 14.6 +1.1 +7.9% Norway 11.0 13.2 +2.2 +20.1% Total('000BOED) 24.5 27.8 +3.3 +13.4% Total('000BOE) 4,462 5,057 +595 +13.3% *Based on interests held by our E&P subsidiaries, on an equity-share basis *Jan–Jun volu
Slide 40: Sales Volume Forecasts 1/2
Sales Volume Forecasts 1/2 ◼ Petroleum [thousand KL,％] May 12 Revised Change Forecast Forecast Gasoline 11,690 11,610 (80) (0.7%) Naphtha 1,170 1,380 +210 +17.9% Jet Fuel 2,490 2,500 +10 +0.4% Kerosene 3,370 3,470 +100 +3.0% Diesel Oil 9,670 9,770 +100 +1.0% Heavy Fuel Oil A 2,890 2,930 +40 +1.4% He
Slide 41: Sales Volume Forecasts 2/2
Sales Volume Forecasts 2/2 ◼ Basic Chemicals [kt,%] May 12 Revised Change Forecast Forecast Basic Chemicals 3,530 3,180 (350) (9.9%) ◼ Functional Materials [thousand KL,kt,%] May 12 Revised Change Forecast Forecast Lubricants 1,090 1,080 (10) (0.9%) Performance Chemicals 420 410 (10) (2.3%) *Lubrica
Slide 42: Production Volume Forecasts
Production Volume Forecasts ◼ Resources (Oil E&P) [KBOED,%] May 12 Revised Change Forecast Forecast Vietnam 12.1 12.6 +0.5 +4.1% Norway 12.5 12.8 +0.3 +2.4% Total('000BOED) 24.6 25.4 +0.8 +3.3% Total('000BOE) 8,980 9,290 +310 +3.5% *Based on interests held by our E&P subsidiaries, on an equity-share
Slide 43: Crude Oil Prices
Crude Oil Prices [USD/bbl] 150 Brent Dubai 130 110 90 70 50 30 10 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-26 Inspiring the future with energy and materials 43
Slide 44: Gasoline-Crude Oil (Domestic Spot Price and Spread)
Gasoline-Crude Oil (Domestic Spot Price and Spread) [Price :JPY/L] [Spread：JPY/L] 160 60 Spread 140 Crude oil 50 Gasoline 120 40 100 30 80 20 60 10 40 0 20 -10 0 -20 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-26 Inspiring the future with energy and materials 44
Slide 45: Diesel-Crude Oil (Domestic Spot Price and Spread)
Diesel-Crude Oil (Domestic Spot Price and Spread) [Price :JPY/L] [Spread：JPY/L] 180 70 Spread 160 Crude oil 60 Diesel oil 140 50 120 40 100 30 80 20 60 10 40 0 20 -10 0 -20 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-26 Inspiring the future with energy and materials 45
Slide 46: Gasoline-Crude Oil (Singapore Spot Price and Spread)
Gasoline-Crude Oil (Singapore Spot Price and Spread) [Price :USD/bbl] [Spread：USD/bbl] 160 40 Spread 140 Dubai 35 Gasoline 30 120 25 100 20 80 15 60 10 40 5 20 0 0 -5 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-26 Inspiring the future with energy and materials 46
Slide 47: Diesel-Crude Oil (Singapore Spot Price and Spread)
Diesel-Crude Oil (Singapore Spot Price and Spread) [Price :USD/bbl] [Spread：USD/bbl] 250 100 Spread Dubai 90 Diesel Oil 200 80 70 150 60 50 100 40 30 50 20 10 0 0 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-26 Inspiring the future with energy and materials 47
Slide 48: Para-Xylene, Mixed Xylene-Naphtha (Price and Spread)
Para-Xylene, Mixed Xylene-Naphtha (Price and Spread) [Price :USD/ton] [Spread：USD/ton] 1,600 600 PX spread Product FY2025 2Q FY2026 2Q Change Mx spread Naphtha PX 242 282 +40 1,400 PX MX 114 139 +25 500 MX 1,200 400 1,000 800 300 600 200 400 100 200 0 0 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-
Slide 49: Styrene Monomer, Benzene-Naphtha (Price and Spread)
Styrene Monomer, Benzene-Naphtha (Price and Spread) [Price :USD/ton] [Spread：USD/ton] 1,600 800 SM spread BZ spread Naphtha SM BZ Product FY2025 2Q FY2026 2Q Change 1,400 700 SM 344 375 +31 BZ 144 163 +19 1,200 600 1,000 500 800 400 600 300 400 200 200 100 0 0 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-
Slide 50: Operational Data
Operational Data ◼ Refinery Utilization Rates（QoQ） FY2025 FY2025 FY2025 FY2025 FY2026 FY2026 1Q 2Q 3Q 4Q 1Q 2Q BCD*1 71% 71% 82％ 87% 72% 81% BSD*1 85% 81% 92% 88% 84% 91% *1 BCD : incl. regular maintenances, BSD : excl. regular maintenances ◼ Number of Service Stations FY2026 FY2022 FY2023 FY2024 FY
Slide 51: Overview of the Company
Overview of the Company FY2025, actual or as of Sep 2026 ∎ Petroleum Segment ∎ Functional Materials Segment Refining Capacity 931 KBD *1) (Lubricants, Performance Chemicals, Electronic Domestic petroleum sales volume Materials, Agri life, Lithium Solid Electrolytes) 33 million KL/year *2) Numb
Slide 52: Petroleum Segment
Petroleum Segment [KB/D] Refining Operating Company Refinery RH FCC RFCC FLG EUREKA Equity Ratio Capacity Japan Hokkaido 140 42 33 Idemitsu Kosan Chiba 200 40 45 Aichi 163 60 50 Showa Yokkaichi Sekiyu Yokkaichi 225 48 61 75.0% Toa Oil Keihin 60 42 27 100.0% Fuji Oil Sodegaura 143 42 33 92.5% Domesti
Slide 53: Basic Chemicals Segment
Basic Chemicals Segment [mil tons/year] Major Chemical Production Capacity Operating Company Plant Olefins Aromatics Equity Ratio Styrene Ethylene Para-Xylene Monomer Japan Chiba 0.374 0.265 0.210 Idemitsu Kosan Aichi 0.357 Tokuyama 0.623 0.214 0.340 Total 0.997 0.836 0.550 Overseas Idemitsu Petroch
Slide 54: Functional Materials Segment 1/2
Functional Materials Segment 1/2 Lubricants Performance Chemicals ◼ Product categories ◼ Product categories ・ Automotive lubricants (engine oil, etc.) ・ Engineering plastics, adhesives materials, ・ Grease solvents and functional materials ・ Industrial lubricants ◼ Major products, applications, featu
Slide 55: Functional Materials Segment 2/2
Functional Materials Segment 2/2 Electronic Materials Agri Life ◼ Product categories ◼ Product categories ・ OLED materials ・ Chemical pesticides (Daconil 1000*1, etc.) ・ Display semiconductor materials etc. ・ Plant-derived pesticides ・ Functional Feeds (RUMINUP*2, etc.） ◼ OLED manufacturing/customer
Slide 56: Power/Renewable Energy Segment
Power /Renewable Energy Segment Equity Ratio Power generation capacity* Category Power Plant Operating Company (%) (10,000 KW) Solar 34 domestic locations Idemitsu, other ー 19.1 Biomass Keihin Biomass Power Plant (Kanagawa) Keihin Biomass Power 100 4.9 Tosa Power Plant (Kochi) Tosa Green Power 50 0.
Slide 57: Resources Segment (Gas and Oil E&P)
Resources Segment (Gas and Oil E&P) Business Overview Production Oil/Gas Reserves ◼ Producing and selling crude oil/gas in Vietnam ◆Reserves *1,2 and Norway [million BOE] 100 ◼ Exploration and development of gas in Vietnam and other parts of Southeast Asia to shift to 50 production of natural gas, w
Slide 58: Resources Segment (Coal)
Resources Segment (Coal) Business Overview Business Structure Reforms ◼ [Business Strategy] ◼ Idemitsu Green Energy Pellets (black pellets) ・ Stable supply and profit maximization by ・ CO2 emissions can be reduced by replacing coal with leveraging the highly competitive Boggabri Mine black pellets i
Slide 59: 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