Idemitsu Kosan Co., Ltd. · TSE:5019

Idemitsu Kosan — Q3 FY2018 Earnings Presentation

40 slides from Idemitsu Kosan's earnings presentation, Feb 14, 2019

Slide 1: Presentation on Results for the 3rd Quarter FY 2018
Presentation on Results for the 3rd Quarter FY 2018 Idemitsu Kosan Co.,Ltd. February 14, 2019
Slide 2: Table of Contents
Table of Contents 1. FY 2018 3rd Quarter Results (1) Overview (2) Segment Information 2. Forecast for FY 2018 Performance (1) Overview (2) Segment Information 3. Reference Materials Copyright©2019 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 1
Slide 3: Crude Oil Price Trends
Crude Oil Price Trends <Monthly Dubai Crude Oil Price Trends and Assumptions for Performance Forecasts> (US$/Bbl.) FY 2017 Actual FY 2018 Actual 8/14 Assumption FY 2018 3Q Average: US$71.3/Bbl. Assumption Announced on 8/14 (July~ ): US$70.0/Bbl. FY 2017 3Q Average: US$53.2/Bbl. Assumption for Revise
Slide 4: JPY/USD Exchange Rate (TTS) Trends
JPY/USD Exchange Rate (TTS) Trends <Monthly JPY/USD Exchange Rate Trends and Assumptions for Performance Forecasts> (JPY/USD) FY 2017 3Q Average: JPY112.7/USD FY 2018 3Q Average: JPY112.1/USD FY 2017 Actual FY 2018 Actual Assumption Announced on 8/14 Assumption 8/14 (July~ ): JPY110.0/USD Apr May Ju
Slide 5: Overview
Overview <FY 2018 3rd Quarter Results> ■Operating income decreased by ¥13.2 billion year-on-year to ¥143.2 billion despite increased profits from the resources segment following an increase in resource prices, mainly due to increased costs in the petroleum products segment and decreased inventory im
Slide 6: 1. FY 2018 3rd Quarter Results
1. FY 2018 3rd Quarter Results
Slide 7: (1) Overview
(1) Overview 1) Crude Oil / Exchange Rates (Units: $/Bbl., $/Ton, ¥/$) FY2017 3Q FY2018 3Q Change Crude Oil (DB FOB) 53.2 71.3 18.1 34.0% Crude Oil (Brent) 51.9 72.1 20.2 38.9% Naphtha Price (Customs) 489 652 163 33.3% Thermal Coal (NEWC) 85.7 108.0 22.3 26.0% Exchange Rate (TTS) 112.7 112.1 (0.6) (
Slide 8: (2) Segment Information: Operating Income
(2) Segment Information 1) Operating Income (Units: ¥ billions) FY2017 3Q FY2018 3Q Change Petroleum Products 77.4 52.0 (25.4) (32.8%) (Excluding inventory impact) 53.9 36.6 (17.3) (32.1%) Petrochemical Products 30.1 24.5 (5.6) (18.7%) Resources 46.8 65.6 18.7 40.0% Oil Exploration and Production 18
Slide 9: (2) Segment Information: Factor Analysis
(2) Segment Information 2) Factor Analysis for Year-on-year Change in Operating Income (Units: ¥ billions) Petroleum Products (25.4) Increase in Product Margins, etc. +12.3 Increased Refinery Fuel Costs, etc. (29.6) Inventory Impact (8.1) Petrochemical Products (5.6) Decrease in Product Margins (2.0
Slide 10: 2. Forecast for FY 2018 Performance
2. Forecast for FY 2018 Performance
Slide 11: (1) Overview
(1) Overview 1) Crude Oil / Exchange Rates (Units: $/Bbl., $/Ton, ¥/$) Aug 14 Forecast Revised Forecast Difference Assumption (Jan~) Crude Oil (DB FOB) 70.5 68.4 (2.1) (3.0%) 60.0 Crude Oil (Brent) 71.8 71.0 (0.7) (1.0%) － Naphtha Price (Customs) 633 619 (14) (2.1%) 522 Thermal Coal (NEWC) 106.4 107
Slide 12: (2) Segment Information: Operating Income
(2) Segment Information 1) Operating Income (Units: ¥ billions) Aug 14 Forecast Revised Forecast Difference Petroleum Products 97.0 47.0 (50.0) (51.5%) (Excluding inventory impact) 74.5 47.0 (27.5) (36.9%) Petrochemical Products 39.0 34.0 (5.0) (12.8%) Resources 80.0 85.0 5.0 6.3% Oil Exploration an
Slide 13: (2) Segment Information: Factor Analysis
(2) Segment Information 2) Factor Analysis for Change in Operating Income (vs. 8/14 Forecast) (Units: ¥ billions) Petroleum Products (50.0) Decrease in Product Margins, etc. (22.0) Increased Refinery Fuel Costs, etc. (5.5) Inventory Impact (22.5) Petrochemical Products (5.0) Decrease in Product Marg
Slide 14: 3. Reference Materials
3. Reference Materials
Slide 15: Table of Contents
Table of Contents 1. Financial Reporting 4. Foreign Exchange (1) Net Sales by Segment 5. Market Conditions (2) Extraordinary Gains/Losses 6. Capacity Utilization at Refineries (3) Consolidated Balance Sheet 7. Number of Service Stations 2. Sensitivity 3. Sales and Production (1) Sales/Production Vol
Slide 16: FY2018 3rd Quarter Net Sales by Segment
1. Financial Reporting (1) – 1. FY2018 3rd Quarter Net Sales by Segment (Units: ¥ billions) FY2017 3Q FY2018 3Q Change Petroleum Products 2,047.1 2,626.3 579.2 28.3% Petrochemical Products 357.2 433.7 76.5 21.4% Resources 209.2 229.2 20.0 9.5% Oil Exploration 59.5 58.6 (0.9) (1.5%) and Production Co
Slide 17: FY2018 Net Sales Forecast by Segment
1. Financial Reporting (1) – 2. FY2018 Net Sales Forecast by Segment (Units: ¥ billions) Aug 14 Forecasts Revised Forecast Difference Petroleum Products 3,340.0 3,330.0 (10.0) (0.3%) Petrochemical Products 570.0 570.0 0.0 － Resources 300.0 300.0 0.0 － Oil Exploration and Production 90.0 90.0 0.0 － C
Slide 18: Extraordinary Gains/Losses
1. Financial Reporting (2) Extraordinary Gains/Losses (Units: ¥ billions) FY2017 3Q FY2018 3Q Change Gain on Sale of Fixed Assets 1.7 1.5 (0.1) Gain on Sale of Affiliate Stock 12.1 0.2 (11.9) Other 0.2 6.8 6.6 Total Extraordinary Gains 14.0 8.5 (5.5) Loss on Sale or Depletion of Fixed Assets 1.5 1.4
Slide 19: Consolidated Balance Sheet
1. Financial Reporting (3) Consolidated Balance Sheet (Units: ¥ billions) 3/31/2018 12/31/2018 Change 3/31/2018 12/31/2018 Change Cash and Deposits 88.4 100.4 12.0 Payables 429.6 381.7 (47.9) Receivables 486.2 560.9 74.7 Short-term Borrowings 305.9 536.0 230.1 Inventory 535.6 574.5 38.9 Other Curren
Slide 20: 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 ￥3.5 billion ￥2.9 billion Oil Exploration & Production ￥1.0 billion (2) Impact of a 1 JPY/USD Appreciation on FY Earnings Decr
Slide 21: Sales Volume (Domestic Fuel Oil)
3．Sales and Production (1)－1.Sales Volume (Domestic Fuel Oil Sales Volume: Non-consolidated) and KL,%）（Units:Thousand KL,%） FY 2017 3Q FY 2018 3Q Change Gasoline 6,043 5,897 (146) (2.4%) (Premium-Unleaded) 641 601 (39) (6.2%) (Regular-Unleaded) 5,402 5,296 (106) (2.0%) Naphtha 220 274 54 24.3% Jet
Slide 22: Sales Volume (Petrochemical Products, Lubricants)
3．Sales and Production （1）－2.Sales Volume (Petrochemical Products: Non-consolidated) nd tons, %) (Units:Thousand tons, %) FY 2017 3Q FY 2018 3Q Change Petrochemical Products-Total 2,528 2,635 108 +4.3% (Basic Chemicals) 2,493 2,597 104 +4.2% (Performance Chemicals) 35 38 3 +9.9% （1）－3.Sales Volume (
Slide 23: Oil Exploration & Production and Coal Production Volume
3．Sales and Production （1）－4.Oil Exploration & Production – Production Volume (including Gas) nd BOED）（Units:Thousand BOED） FY 2017 3Q FY 2018 3Q Change Norway 34.1 27.2 (6.9) (20.3%) United Kingdom 4.4 0.0 (4.4) (100.0%) Total('000BOED) 38.5 27.2 (11.3) (29.4%) Total('000BOE) 10,500 7,416 (3,084)
Slide 24: Sales Forecasts (Domestic Fuel Oil)
3．Sales and Production （2）－1.Sales Forecasts (Domestic Fuel Oil Sales Volume: Non-consolidated) （Units:Thousand KL,%） Aug 14 Revised Difference Forecast Forecast Gasoline 7,710 7,730 20 0.3% (Premium-Unleaded) 810 790 (20) (2.5%) (Regular-Unleaded) 6,900 6,940 40 0.6% Naphtha 390 350 (40) (10.3%) Je
Slide 25: Sales Forecasts (Petrochemical Products, Lubricants)
3．Sales and Production （2）－2.Sales Forecasts (Petrochemical Products: Non-consolidated) (Units:Thousand tons, %) Aug 14 Revised Difference Forecast Forecast Petrochemical Products-Total 3,600 3,540 (60) (1.7%) (Basic Chemicals) 3,550 3,490 (60) (1.7%) (Performance Chemicals) 50 50 0 0.0% （2）－3.Sales
Slide 26: Production Volume Forecasts (Oil, Coal)
3．Sales and Production （2）－4.Oil Exploration & Production – Production Volume Forecasts (including Gas) （Units:Thousand BOED） Aug 14 Revised Difference Forecast Forecast Norway 27.0 26.8 (0.2) (0.9%) Total('000BOE) 9,870 9,780 (90) (0.9%) *Figures based on interest owned by Idemitsu's resource devel
Slide 39: 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
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Idemitsu Kosan Co.,Ltd. — Q3 FY2018 Earnings Presentation on 6ix

Idemitsu Kosan — Q3 FY2018 Earnings Presentation

Slide 1: Presentation on Results for the 3rd Quarter FY 2018

Slide 2: Table of Contents

Slide 3: Crude Oil Price Trends

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

Slide 5: Overview

Slide 6: 1. FY 2018 3rd Quarter Results

Slide 7: (1) Overview

Slide 8: (2) Segment Information: Operating Income

Slide 9: (2) Segment Information: Factor Analysis

Slide 10: 2. Forecast for FY 2018 Performance

Slide 11: (1) Overview

Slide 12: (2) Segment Information: Operating Income

Slide 13: (2) Segment Information: Factor Analysis

Slide 14: 3. Reference Materials

Slide 15: Table of Contents

Slide 16: FY2018 3rd Quarter Net Sales by Segment

Slide 17: FY2018 Net Sales Forecast by Segment

Slide 18: Extraordinary Gains/Losses

Slide 19: Consolidated Balance Sheet

Slide 20: Sensitivity

Slide 21: Sales Volume (Domestic Fuel Oil)

Slide 22: Sales Volume (Petrochemical Products, Lubricants)

Slide 23: Oil Exploration & Production and Coal Production Volume

Slide 24: Sales Forecasts (Domestic Fuel Oil)

Slide 25: Sales Forecasts (Petrochemical Products, Lubricants)

Slide 26: Production Volume Forecasts (Oil, Coal)

Slide 27: Foreign Exchange (1) USD

Slide 28: Foreign Exchange (2) Norwegian Krone

Slide 29: Foreign Exchange (3) Norwegian Krone

Slide 30: Foreign Exchange (4) Australian Dollar

Slide 31: Foreign Exchange (5) Australian Dollar

Slide 32: Market Conditions: Crude Oil Prices (Dubai and Brent)

Slide 33: Market Conditions: Gasoline, Crude Oil CIF

Slide 34: Market Conditions: Diesel Oil – Crude Oil CIF

Slide 35: Market Conditions: Paraxylene, Naphtha

Slide 36: Market Conditions: Styrene Monomer, Naphtha

Slide 37: Capacity Utilization at Refineries

Slide 38: Number of Service Stations

Slide 39: Precaution statement about forecasts

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