Cosmo Energy Holdings Co., Ltd. · TSE:5021
Cosmo Energy — Cosmo Oil — H1 FY2006 Earnings Presentation
28 slides from Cosmo Energy's earnings presentation, Nov 8, 2006
Slide 1: New Consolidated Medium-Term Management Plan: Progress in First Half of FY2006
Cosmo Oil Co., Ltd. New Consolidated Medium-Term Management Plan Progress Made in the First Half of FY2006 and Future Policy November 8, 2006 Yaichi Kimura, President Naomasa Kondo, Satoshi Miyamoto, Managing Director http://www.cosmo-oil.co.jp
Slide 2: Today's Presentation – Table of Contents
Today’s Presentation – Table of Contents Review of Results of the First Half President of FY2006 and Basic Policy for the Pages 1-3 Yaichi Kimura Second Half (Full Year) of FY2006 Progress Made and Future Policy for Outline of Results for the Medium-Term Management Plan Pages 4-7 First Half of FY200
Slide 3: Review of Results for the First Half of FY2006
Review of Results for the First Half of FY2006 1 Including inventory Excluding inventory Consolidated Ordinary valuation impact valuation impact Income for the First 50.6 billion yen 25.4 billion yen Half of FY2006 (down 6.6 bn yen from the (down 200 million yen from the first half of FY2005) first
Slide 4: Outline of Forecasts for Full Year of FY2006
Outline of Forecasts for Full Year of FY2006 2 Assumption – Crude oil price Full-year Full-year ordinary ordinary income income (for 2H FY2006): 58 USD/brl forecast forecast for for FY2006 FY2006 (Excluding (Excluding inventory inventory valuation valuation impact) impact) Assumption – Foreign excha
Slide 5: Management Policy for Second Half (Full Year) of FY2006
Management Policy for Second Half (Full Year) of FY2006 3 Ensure that various programs for the MTMP will be put into action <Crude oil exploration <Cosmo Oil alone> and production> <Petrochemical> <CSR enhancement> Promote value creation Enhance safety Maintain and increase Mixed xylene business man
Slide 6: Results of 1H FY2006 Consolidated Ordinary Income – Highlights
[Results of 1H FY2006] Consolidated Ordinary Income - Highlights 4 Change from 1H of FY2006 1H FY2005 Consolidated ordinary income 50.6 billion yen -6.6 billion yen Inventory valuation impact 25.2 billion yen -6.4 billion yen Consolidated ordinary income 25.4 billion yen -0.2 billion yen (Excluding
Slide 7: Consolidated Ordinary Income – Analysis of Decrease from 1H FY2005
[Results of 1H FY2006] Consolidated Ordinary Income – Analysis of 5 Decrease of 6.6 Billion yen from 1H FY2005 [Results ofImpact 1HbyFY2005] market condition: 4 Consolidated Ordinary CM Aromatics and– 前年 Improved results atIncome (Unit: 100 million yen) other consolidated subsidiaries: 22 比 ▲６６億円 増減
Slide 8: Results of Major Consolidated Subsidiaries and Equity Method Subsidiaries
[Results for 1H FY2006] Consolidated Subsidiaries - Results of Major Consolidated Subsidiaries and Subsidiaries Owned Under the Equity Method 6 <Major Consolidated Subsidiaries – Ordinary Income> (Unit: 100 million yen) Change from 1H FY06 Description for key factors affecting results 1H FY05 1. Cru
Slide 9: Outline of Consolidated Cash Flows and Balance Sheets
[Results of 1H FY2006] Outline of Consolidated Cash Flows and Balance Sheets 7 (Unit: 100 million yen) Change from as of As of Sept. 30, 2006 Major factor Mar. 31, 2006 Increased accounts receivable, inventories, etc. Cash flow from operating activities -551 - due to crude oil price increases Cash f
Slide 10: Consolidated Operating Forecast – Ordinary Income
[Forecast for Full Year of FY2006] 8 Consolidated Operating Forecast – 1. Ordinary Income Full Year FY2006 Change from FY2005 Consolidated ordinary income 79.0 bn yen -40.6 bn yen Inventory valuation impact 12.0 bn yen -33.4 bn yen Consolidated ordinary income 67.0 bn yen -7.2 bn yen (Excluding impa
Slide 11: Consolidated Operating Forecast – Analysis of Expected Decrease
[Forecast for Full Year of FY2006] Consolidated Operating Forecast – 2. 9 Analysis of Expected Decrease of 40.6 Billion yen in Ordinary Income from FY2005 (Unit: 100 million yen) Impact by market condition: (42) Abu Dhabi Oil Co., Ltd.: 110 Improved results at CM Aromatics and Reduced time lag: 69 Q
Slide 12: Non-Consolidated MTMP – Progress in Added Value Creation and Rationalization
[Non-Consolidated MTMP] Non-Consolidated – Progress Made in “Added 10 Value Creation and Rationalization” Benefits and Full-Year Forecast <1H FY2006 <Forecast for Actual total benefits of> <Forecast for 2H FY2006> Full Year of FY2006> 3.0 billion yen 2.4 billion yen 5.4 billion yen * (Unit: 100 mill
Slide 13: Supply Department – Basic Policy and Efforts
[Non-Consolidated MTMP] 11 Non-Consolidated – Supply Department – Basic Policy and Efforts Ensure safe, stable operations and improve added-value creation in the refinery business (Unit: 100 million yen) FY2006 - Total benefits forecast for full year 25 2.3 billion yen 2H FY2006 - •Enhanced producti
Slide 14: Sales & Marketing Department – Basic Policy
[Non-Consolidated MTMP] 12 Non-Consolidated – Sales & Marketing Department – Basic Policy Changes Changes in in Business Business Environment Environment •Growing demand for lower prices Prolonged increase in retail prices •Intensifying SS and brand selection at SSs due to crude oil price hikes by c
Slide 15: Sales & Marketing Department – Progress Status
[Non-Consolidated MTMP] 13 Non-Consolidated – Sales & Marketing Department – Progress Status Self-Service Self-Service SS SS Business Business Cosmo Cosmo The Card *2*2 The Card No. of SSs operational as of Sept. 30, 2006: 720 (No. of Self-Service SSs newly opened during 1H FY2006: 94) No. of cards
Slide 16: Crude Oil Exploration & Production: Results of Subsidiaries and Future Plans
[Crude Oil Exploration & Production] 14 Results of Subsidiaries and Future Plans ◆Operating Highlights of the Crude Oil Exploration & Production Business Segment FY2006 - Full Item and company name Unit H1 FY2006 - year results forecast Dubai crude oil (*1) USD/BRL 61.4 62.5 Ordinary 100 million Abu
Slide 17: Operating Highlights of Petrochemical Business (CM Aromatics)
[Petrochemicals] Operating Highlights of Petrochemical Business 15 (CM Aromatics Co., Ltd.) ●July 2005: • CM Aromatics Co., Ltd. started manufacturing and marketing mixed xyelene (with the production capacity of 100,000 tons a year) ●July 2006: • Increased its production capacity to 270,000 tons a y
Slide 18: Preventive Measures against the Recent Accident and Regulatory Compliance
[CSR] Preventive Measures against the Recent Accident and 16 Compliance with Regulatory Measures (1) Restructuring the safety control system We have learned important lessons from the April 2006 accident. We will give top priority to addressing problems associated with fixed measurement points and
Slide 19: Supplementary Information
Supplementary Information 1. [Actual Results & Forecast] Crude Oil Procurement and Processing Costs, Selling Prices and Volume, Crude Oil Production Volume 2. [Actual Results & Forecast] Overall Review of Progress Made by Non- Consolidated Oil Business in Medium-Term Management Plan (MTMP) 3. [Actua
Slide 20: Crude Oil Procurement and Processing Costs, Selling Prices and Volume
[Actual Results vs. Forecast] Crude Oil Procurement and Processing Supplementary Costs, Selling Prices and Volume, Crude Oil Production Volume Information – 1 2H FY06 1H FY06 - actuals Change % change assum ption Purchased price of crude Crude oil (FOB) USD/BRL 65.93 14.09 － 58.00 oil JPY/USD exchan
Slide 21: Overall Review of Progress by Non-Consolidated Oil Business in MTMP
[Actual Results & Forecast] Overall Review of Progress Made by Non- Supplementary Consolidated Oil Business in Medium-Term Management Plan (MTMP) Information＊ –2 First Half of FY2006 FY2006 – Full-Year Forecast Item Departm ent 2H FY2006 - Revised Original plan Achievement Achievement forecast Origi
Slide 22: Results of 1H 2006 by Major Subsidiary and Business Segment
[Actual Results] Results of 1H 2006 by Major Consolidated Supplementary Subsidiary and Business Segment Vs. Results of 1H FY2005 Information＊ –3 <Operating highlights by major consolidated subsidiary> (Unit: 100 million yen) Net Sales Operating Income Ordinary Income Net Income Change from Change fr
Slide 23: Full-Year Forecast by Subsidiary and Segment vs. FY2005
[Forecast of FY2006] Full-Year Forecast by Major Consolidated Supplementary Subsidiary and Business Segment Vs. Full-Year Results of FY2005 Information＊ –4 <Operating highlights by major consolidated subsidiary> (Unit: 100 million yen) Net Sales Operating Income Ordinary Income Net Income Change fro
Slide 24: Full-Year Forecast vs. Previously Announced Forecast
[Forecast of FY2006] Full-Year Forecast by Major Consolidated Subsidiary and Supplementary Business Segment Vs. Previously Announced Forecast (on May 16, 2006) Information＊ –5 <Operating highlights by major consolidated subsidiary> (Unit: 100 million yen) Net Sales Operating Income Ordinary Income N
Slide 25: Analysis of Expected Changes from Previously Announced Forecast
[Forecast of FY2006] Forecast Consolidated Ordinary Income for FY2006 - Analysis Supplementary of Expected Changes from Previously Announced Forecast (on May 16, 2006) Information – 6 (Unit: 100 million yen) Impact by market condition: (7) Abu Dhabi Oil Co., Ltd.: 28 Improved results at CM Aromatics
Slide 26: Historical Changes in Consolidated EBITDA
[Forecast of FY2006] Historical Changes in Consolidated EBIDA Supplementary Excluding Inventory Valuation Impact Information＊ –7 (Unit: 100 million yen) Historical Changes in EBITDA (Consolidated) 1053 941 780 722 383 636 583 283 546 468 475 249 375 400 365 297 236 235 240 247 658 670 234 531 347 27
Slide 27: Historical Changes in Employees, Depots, SSs and Cards in Force
[Actual Results of H1 FY2006] Historical Changes in the Number of Supplementary Employees, Oil Storage Depots, SSs and Cards in Force Information＊ –8 Workforce size (No. of persons) Mar 31, ‘99 Mar 31, ‘00 Mar 31, ‘01 Mar 31, ‘02 Mar 31, ‘03 Mar 31, ‘04 Mar 31, ‘05 Mar 31, ‘06 Sep 30, '06 Cosmo Oil
Slide 28: Cautionary Statement Regarding Forward-Looking Scenarios
Cautionary Statement Regarding Forward-Looking Scenarios This presentation contains statements that constitute forward-looking scenarios. While such forward-looking scenarios may include statements based on a variety of assumptions and relating to our plans, objectives or goals for the future, they