Idemitsu Kosan Co., Ltd. · TSE:5019
Idemitsu Kosan — Q1 FY2021 Earnings Presentation
30 slides from Idemitsu Kosan's earnings presentation, Aug 6, 2021
Slide 1: Presentation on Results for the 1st Quarter FY2021
Presentation on Results for the 1st Quarter FY2021 August 6, 2021 Idemitsu Kosan Co.,Ltd.
Slide 2: Summary of Financial Results
Summary of Financial Results FY2021 1Q Overview Quarterly operating + equity income (“segment income”) increased by ¥217.1 billion year-on-year, due to significant improvement in inventory impact resulting from higher crude oil prices and the impact of time lag in the petroleum segment [¥ billio
Slide 3: Key Topics
Key Topics Trends in petroleum demand Demand for the 4 core products, particularly gasoline, is recovering compared to last year. While jet fuel continues to improve, demand remains significantly lower than 2019 ［％］ 2021 2021 2020 2021 2021 Apr-Sep Apr-Sep Oct-Dec Jan-Mar Apr-Jun (forecast) (vs.
Slide 4: Operating Environment
Operating Environment Dubai Crude Oil Australian Coal Exchange Rate Price [USD/ton] Spot price [JPY/USD] (USD) [USD/bbl] 80.0 130.0 112.0 120.0 111.0 70.0 66.9 110.0 110.0 60.0 60.0 108.4 100.0 109.0 109.5 50.0 90.0 108.0 40.0 44.6 89.1 42.9 80.0 107.0 107.6 30.0 30.5 70.0 106.0 106.2 20.0 105.9 67.
Slide 5: Overview
Overview Crude Oil / Coal / Exchange Rates [USD/bbl, USD/ton, JPY/USD] FY2020 1Q FY2021 1Q Change Crude Oil (Dubai) 30.5 66.9 36.4 +119.1% Crude Oil (Brent)* 50.3 60.9 10.6 +21.2% Thermal Coal * 67.8 89.1 21.3 +31.5% Exchange Rate (TTM) 107.6 109.5 1.9 +1.7% *Brent prices and thermal coal prices a
Slide 6: Segment Information
Segment Information Operating Income + Equity Income [￥billions] FY2020 1Q FY2021 1Q Change Petroleum (103.8) 98.9 202.7 － Excluding inventory impact (9.4) 29.6 39.0 － Basic Chemicals 0.1 6.7 6.6 － Functional Materials 4.8 4.3 (0.5) (10.0%) Power and Renewable Energy 0.1 (1.0) (1.0) － Resources* 3
Slide 7: Segment Information
Segment Information Factors Affecting Operating Income + Equity Income (excluding inventory impact, year on year) [￥billions] Price Price Volume Margin Equity income FX Volume Fx etc. etc. etc. Lubricants Power etc. etc. Cost etc. Volume Margin (time lag) Volume Oil Exploration Coal and Production
Slide 8: Segment Information: Petroleum
Segment Information [Petroleum] YoY ＋¥39.0 bn (FY20 1Q：-¥9.4bn ➡ FY21 1Q：¥29.6 bn) <Year-on-year Change in Petroleum <Trends in Domestic Petroleum Product Margins*> sales volume (4 Core Products)> *Average of gasoline, diesel oil, kerosene, and heavy oil A margins (domestic spot –crude oil) (YoY) FY
Slide 9: Segment Information
Segment Information [Basic Chemicals]YoY¥6.6 bn (FY20 1Q ：¥0.1 bn ➡ FY21 1Q ：¥6.7 bn) ¥6.6 bn year-on-year increase due to improve margins as a result of demand recovering from the COVID pandemic [USD/ton] Product FY2020 1Q FY2021 1Q Change Price Margin Price Margin Price Margin PX 495 222 859 253
Slide 10: Segment Information: Oil E&P and Coal
Segment Information [Oil E&P] YoY ¥10.1 bn [Coal] YoY -¥0.4 bn (FY20 1Q：¥2.2bn ➡ FY21 1Q：¥12.4 bn) (FY20 1Q：¥1.0bn ➡ FY21 1Q：¥0.6 bn) <Crude Oil Production Volume and Brent <Coal Production Volume and Australian Coal Crude Oil Price Trends> Spot Price Trends> [Thousand BOE] [USD/bbl] [Thousand tons]
Slide 11: Balance Sheet
Balance Sheet [¥ billions] 3/31/2021 6/30/2021 Change 3/31/2021 6/30/2021 Change Total Current Cash and Deposits 131.3 134.5 3.2 1,621.3 1,620.3 (1.0) Liabilities Receivables, 1,534.2 1,614.5 80.3Total Fixed Liabilities 1,118.0 1,144.8 26.8 Inventory,etc. Total Current Assets 1,665.5 1,749.0 83.5Tot
Slide 12: Reference Materials
Reference Materials € idemitsu
Slide 13: Overview of the Company
Overview of the Company ∎ Petroleum Segment ∎ Functional Materials Segment Refining Capacity 945,000 BD *1) (Lubricants, performance chemicals, electronic Domestic fuel oil sales volume materials, functional asphalt, agricultural- 34 million KL/year *2) biotechnology, solid electrolyte) Number
Slide 14: FY2021 Forecast released on May 11th (Overview)
FY2021 Forecast released on May 11th (Overview) Crude Oil / Coal / Exchange Rates [USD/bbl, USD/ton, JPY/USD] FY2020 FY2021 Change Crude Oil (Dubai) 44.5 60.0 15.5 34.8% Crude Oil (Brent)* 41.7 61.0 19.3 46.4% Thermal Coal * 60.4 80.0 19.6 32.5% Exchange Rate (TTM) 106.1 105.0 (1.1) (1.0%) *Brent
Slide 15: FY2021 Forecast released on May 11th (Segment information)
FY2021 Forecast released on May 11th (Segment information) Operating Income + Equity Income [￥billions] FY2020 FY2021 Change Petroleum 102.1 84.0 (18.1) (17.7%) Excluding inventory impact 94.7 84.0 (10.7) (11.3%) Basic Chemicals 3.4 10.0 6.6 193.9% Functional Materials 13.0 16.0 3.0 23.1% Power an
Slide 16: Financial Data
Financial Data Net Sales by Segment [¥ billions] FY2020 1Q FY2021 1Q Change Petroleum 757.4 998.7 241.3 +31.9% Basic Chemicals 72.8 121.8 49.0 +67.3% Functional Materials 81.0 95.1 14.1 +17.4% Power and Renewable Energy 29.2 25.7 (3.6) (12.2%) Resources* 41.8 60.3 18.5 +44.2% Oil Exploration and P
Slide 17: Financial Data
Financial Data Quarterly segment income（accumulated, excluding inventory impact） [¥ billions] FY2020 1Q FY2020 2Q FY2020 3Q FY2020 FY2021 1Q Petroleum (9.4) 27.3 64.9 94.7 29.6 Equity income (27.2) (28.8) (37.2) (41.1) 6.0 Basic Chemicals 0.1 (2.0) (1.0) 3.4 6.7 Equity income 0.3 0.4 0.7 0.4 0.1 F
Slide 18: Sales and Production
Sales and Production Sales Volume(Petroleum Segment) [Thousand KL,％] FY 2020 1Q FY 2021 1Q Change Gasoline 2,833 3,074 241 8.5% Naphtha 92 20 (72) (78.3%) Jet Fuel 211 377 166 78.8% Kerosene 657 472 (185) (28.1%) Diesel Oil 2,386 2,446 60 2.5% Heavy Fuel Oil A 740 704 (36) (4.9%) Heavy Fuel Oil C
Slide 19: Sales and Production
Sales and Production Sales Volume (Basic Chemicals Segment) [Thousand tons,%] FY 2020 1Q FY 2021 1Q Change Basic Chemicals 1,092 886 (206) (18.9%) *There was an error for FY20 1Q figure, actual volume was 993 thousand tons Sales Volume (Functional Materials Segment) [Thousand KL, Thousand tons,%
Slide 20: Sales and Production
Sales and Production Oil E&P – Production Volume, including Gas (Resources Segment) [Thousand BOED,%] FY 2020 1Q FY 2021 1Q Change Norway 22.0 26.8 4.8 21.8% Vietnam 0.0 9.9 9.9 － Total('000BOED) 22.0 36.7 14.7 66.8% Total('000BOE) 2,002 3,301 1,299 64.9% *Figures based on interest owned by Idemit
Slide 21: Sensitivity
Sensitivity Impact on FY earnings Items Range Impact on earnings Petroleum (¥4.0 billion) Crude Fuel cost, etc. ¥1.0 billion １$/bbl Inventory impact (¥5.0 billion) Decrease Oil Oil Exploration & Production (¥1.0 billion) Petroleum (¥2.5 billion) Foreign Exchange Fuel cost, etc. ¥0.5 billion １JPY/$
Slide 22: Crude Oil Prices (Dubai and Brent)
Crude Oil Prices (Dubai and Brent) [USD/bbl] 90 Brent 80 Dubai 70 60 50 40 30 20 10 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 22
Slide 23: Gasoline – Crude Oil (Domestic spot prices and Spreads)
Gasoline – Crude Oil (Domestic spot prices and Spreads) [JPY/L] Prices Spreads [JPY/L] 80 18 70 16 14 60 12 50 10 40 8 30 6 20 4 Spread 10 Crude oil 2 Gasoline 0 0 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 23
Slide 24: Diesel Oil – Crude Oil (Domestic spot prices and Spreads)
Diesel Oil – Crude Oil (Domestic spot prices and Spreads) [JPY/L] Prices Spreads [JPY/L] 80 20 18 70 16 60 14 50 12 40 10 8 30 6 20 Spread 4 10 Crude oil 2 Diesel oil 0 0 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 24
Slide 25: Gasoline – Crude Oil (Singapore spot prices and Spreads)
Gasoline – Crude Oil (Singapore spot prices and Spreads) [USD/bbl] Prices Spreads [USD/bbl] 100 16 90 14 80 12 70 10 60 8 50 6 40 4 30 2 20 Spread Dubai 0 10 Gasoline 0 -2 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 25
Slide 26: Diesel Oil – Crude Oil (Singapore Spot prices and Spreads)
Diesel Oil – Crude Oil (Singapore Spot prices and Spreads) [USD/bbl] Prices Spreads [USD/bbl] 100 20 90 18 80 16 70 14 60 12 50 10 40 8 30 6 20 Spread 4 Dubai 10 2 Diesel Oil 0 0 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 26
Slide 27: Paraxylene, Mixed xylene – Naphtha (Prices and Spreads)
Paraxylene, Mixed xylene ー Naphtha (Prices and Spreads) [USD/ton] Prices Spreads [USD/ton] 1,400 700 PX spread Mx spread Naptha 1,200 PX MX 600 1,000 500 800 400 600 300 400 200 200 100 0 0 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 27
Slide 28: Styrene Monomer – Naphtha (Prices and Spreads)
Styrene Monomer ー Naphtha (Prices and Spreads) [USD/ton] Prices Spreads [USD/ton] 1,600 1,000 900 1,400 800 1,200 700 1,000 600 800 500 400 600 300 400 200 200 100 SM spread Naptha SM 0 0 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 28
Slide 29: Operational data
Operational data Refineries Utilization FY 2021 FY 2017 FY 2018 FY 2019 FY 2020 1Q Idemitsu Kosan 88% 88% 87% 78% 71% Former Showa Shell 88% 93% * Utilization rate based on BCD Number of Service Stations FY 2021 FY 2017 FY 2018 FY 2019 FY 2020 1Q Idemitsu Kosan 3,545 3,501 3,446 3,426 3,415 Form
Slide 30: 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