Idemitsu Kosan Co., Ltd. · TSE:5019

Idemitsu Kosan — FY2023 Earnings Presentation

80 slides from Idemitsu Kosan's earnings presentation, May 14, 2024

Slide 1: Presentation on Results for FY2023
Presentation on Results for FY2023 May 14, 2024 Idemitsu Kosan Co.,Ltd.
Slide 2: Table of Contents
Table of Contents ◼ Initiatives aimed at enhancing corporate and equity value -Action to Implement Management that is Conscious of Cost of Capital and Stock Price- ✓ Further improving capital efficiency in existing businesses ✓ Reallocating cash ✓ Achieving GHG reduction targets ◼ Highlights ◼ Resul
Slide 3: Initiatives aimed at enhancing corporate and equity value
◼Initiatives aimed at enhancing corporate and equity value -Action to Implement Management that is Conscious of Cost of Capital And Stock Price- 3
Slide 4: Progress on the Medium-Term Plan
Progress on the Medium-Term Plan ◼ 3-year Plan and Forecast Plan Forecast Change Operating+Equity Income* ¥560 billion ¥730 billion +¥170 billion Net Income* ¥380 billion ¥480 billion +¥100 billion Cash flows ¥910 billion ¥1,130 billion +¥220 billion ◼ Financial Condition at the end of FY23 ROE* Equ
Slide 5: Overview of Initiatives toward FY25
Overview of Initiatives toward FY25 Further improving capital Reallocating cash efficiency in existing businesses Upward revision of ROIC target New business investment screening FY25: Existing businesses 7% Key areas: 4 designated Increased allocation towards existing FY22 (adjusted*) : 3.4% Initia
Slide 6: Further improving capital efficiency in existing businesses
Further improving capital efficiency in existing businesses 6
Slide 7: ROIC by Segment: Key Initiatives (1)
ROIC by Segment: Key Initiatives (1) ◼ Petroleum + Basic Chemicals Segment (FY22 2.3% ➡ FY25 6%) ✓ Optimize refining capability to reduce invested capital while expanding high-growth overseas businesses and achieving profitability at NSRP in FY25 to secure ROIC spread Items Details Earnings Capital
Slide 8: ROIC by Segment: Key Initiatives (2)
ROIC by Segment: Key Initiatives (2) ◼ Functional Materials Segment (FY22 4.5% ➡ FY25 10%) ✓ ROIC improved to over 7% in FY23 through withdrawal from unprofitable businesses, etc. Aiming to exceed 10% through earnings improvement and strategic investments including M&A Items Details Earnings Capital
Slide 9: ROIC by Segment: Key Initiatives (3)
ROIC by Segment: Key Initiatives (3) ◼ Power/Renewable Energy Segment (FY22 0.3% ➡ FY25 4%) ✓ Implement structural reforms (revamp the overseas renewable energy businesses, achieve profitability at Solar Frontier) to ensure 4% ROIC Items Details Earnings Capital Improvement Compression Optimize elec
Slide 10: ROIC by Segment: Key Initiatives (4)
ROIC by Segment: Key Initiatives (4) ◼ Resources Segment (FY22 17.2% ➡ FY25 14%) ✓ Reduced invested capital by aggregating coal mining interests Achieve high ROIC by continuing stable supply to steadily evolve the portfolio Items Details Earnings Capital Improvement Compression Aggregation of coal m
Slide 11: ROIC by Segment
ROIC by Segment FY22 FY22 NOPAT*2 FY25 Segment ROIC Invested Invested Capital*3 ROIC Target (adjusted) Capital FY25 vs FY22 (¥ bn) Petroleum +88 2.3% 71% 6% + Basic Chemicals (184) +28 Functional Materials 4.5% 10% 10% +50 Power/Renewable +8 0.3% 7% 4% Energy (73) (22) Resources 17.2% 9% 14% (40) To
Slide 12: Further Profit Improvement in Existing Businesses
Further Profit Improvement in Existing Businesses ◼ FY25 Operating + Equity Income: ¥230 billion (vs. FY23 adjusted: +¥50 billion) 310.6 Units: ¥ billions Adjustment* 252.7 +15 Adjustment* +9 230 +19 +24 -17 180 130 Earnings improvement in FY24~ +¥50 billion FY2022 Actual FY2023 Actual Petroleum/ Fu
Slide 13: Reallocating cash
€& idemitsu Reallocating cash II Rights Reserved 13
Slide 14: Screening Results of New Business Contributing to CN
Screening Results of “New Business Contributing to CN” 16PJ ◼ Designated 4 key areas for investment towards CN in 2050 ◼ Establish KSFs towards rapid implementation by 2030 and profitability thereafter  Market feasibility ＝ Pursue economy, versatility, scalability, continuity, supplementation  Use
Slide 15: Investment Allocation (FY2023~2030)
Investment Allocation (FY2023~2030) ◼ Reviewed our FY2023-2030 strategic investments based on a timeline in light of screening and increase in CF during the medium-term plan period ✓ Investments leading to higher CF or ROIC towards 2030 (Growth investments): Strength earning power of existing busine
Slide 16: Reviewing the Capital Structure
Reviewing the Capital Structure(Pursuing Adequate Shareholders’ Equity) ◼ Adequate shareholders’ equity ✓ Maintain current credit rating to secure a stable financial base to achieve steady progress in restructuring efforts (maintain optimal balance between shareholders’ equity, interest-bearing liab
Slide 17: 3-year Cash Flow Allocation (FY2023~2025)
3-year Cash Flow Allocation (FY2023~2025) ◼ Increase in CF to be used for 1) strategic investments, 2) shareholder returns, and 3) review of the capital structure <Announced 11/2022> <Revised 5/2024> Units: ¥ billions Cash In Cash Out Cash In Cash Out 910 910 1,130 1,130 Maintenance/ Maintenance/ Re
Slide 18: Achieving GHG reduction targets
Achieving GHG reduction targets 18
Slide 19: Progress on FY2030 Scope1+2 Reduction Targets
Progress on FY2030 Scope1+2 Reduction Targets ◼ Almost achieve ~20％ of the required 7.3 million t reduction towards 46% reduction by FY2030 ✓ Reduce utilization through refineries integration: terminated Seibu Oil refinery operations, stopped L-MODU/acrylic acid devices, consider stopping Chiba Dist
Slide 21: FY2023 Results
FY2023 Results ◼ Summary ✓ Operating + equity income (segment income) excluding inventory impact increased by ¥57.9 billion y-o-y, as the positive impact of time-lag in the petroleum business, etc. offset the negative impact of mining size reduction in the coal business and the decrease in coal pric
Slide 22: FY2024 Forecasts and Shareholder Returns
FY2024 Forecasts and Shareholder Returns ◼ Summary ✓ Segment income excluding inventory impact decreased by ¥125.6 billion y-o-y due to a loss of the positive time-lag earned in the previous FY, etc. in the petroleum business, decline in the coal market, mining size reduction, etc. [¥ billions] FY23
Slide 24: Topics (1/2)
Topics (1/2) ◼ Situation of Nghi Son Refinery in Vietnam [FY23] ✓ While operating income excluding inventory impact increased, NSRP reported net losses due to an increase in financial expenses *Zero on consolidated basis FY23 due to loss on write-down of long-term loans receivable reported in FY21 ✓
Slide 25: Topics (2/2)
Topics (2/2) ◼ Trends in Petroleum Demand and Sales ✓ In FY23, gasoline demand decreased due to less ownership of gasoline-powered vehicles and improved fuel efficiency. Diesel oil also decreased due to streamlined logistics, etc. This trend is expected to continue in FY24 FY22 FY24 FY23 (Reference)
Slide 26: Operating Environment
Operating Environment Dubai Crude Australian Coal Exchange Rate [USD/bbl] Oil Price [USD/ton] Spot Price [JPY/USD] (USD) 120.0 450.0 155.0 FY2023 FY2022 420.0 420.7 390.0 150.0 148.6 110.0 376.8 379.5 108.1 360.0 147.9 330.0 145.0 144.6 100.0 300.0 96.9 141.6 270.0 140.0 263.7 240.0 247.8 90.0 137.4
Slide 27: Overview
Overview ◼ Crude Oil/Coal/Exchange Rate [USD/bbl, USD/ton, JPY/USD] FY2022 FY2023 Change Crude Oil (Dubai) 92.5 82.3 (10.2) (11.0%) Crude Oil (Brent)* 101.2 82.6 (18.5) (18.3%) Australian Coal Spot Price* 360.2 172.8 (187.4) (52.0%) Exchange Rate (TTM) 135.5 144.6 +9.2 +6.8% *Brent prices and Austra
Slide 28: Segment Information
Segment Information ◼ Operating ＋ Equity Income [¥ billions] FY2022 FY2023 Change Petroleum 73.0 219.7 +146.6 +200.8% Excluding inventory impact 17.3 167.2 +149.9 +867.6% Basic Chemicals 10.1 22.0 +12.0 +119.0% Functional Materials 17.0 27.6 +10.6 +62.6% Power and Renewable Energy 0.5 (7.6) (8.1) －
Slide 29: Segment Information
Segment Information ◼ Factors Affecting Operating + Equity Income (excluding inventory impact, y-o-y) [￥billions] Lubricants, Margin, Affiliates, etc. Vietnam, etc. fuel cost, etc. non-core etc. Power, products Volume etc. Export Norway margin Volume Price core products Consolidated margin adjustmen
Slide 30: Segment Information: Petroleum
Segment Information [Petroleum] YoY +¥149.9 bn (FY22: ¥17.3 bn ➡ FY23: ¥167.2 bn) [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 (YoY) (domestic spot –crude oil) [Thousand 98.9
Slide 31: Segment Information: Chemicals, Materials, Power
Segment Information [Basic Chemicals] YoY +¥12.0 bn (FY22: ¥10.1 bn ➡ FY23: ¥22.0 bn) ✓ Sales volume improved following the regular maintenance in the last FY and sales expansion after the launch of PX operations at Chita ✓ Profits improved due to margin improvement and decrease in fuel costs, etc.
Slide 32: Segment Information: Oil E&P and Coal
Segment Information [Oil E&P] YoY -¥13.7 bn [Coal] YoY -¥100.3 bn (FY22：¥32.8bn ➡ FY23：¥19.1bn) (FY22：¥198.1bn ➡ FY23：¥97.8 bn) <Crude Oil Production Volume <Coal Production Volume and Brent Crude Oil Price Trends> and Australian Coal Spot Price Trends> FY2022 FY2023 FY2022 FY2023 [Thousand BOE] [US
Slide 33: Balance Sheet
Balance Sheet [¥ billions] 3/31/2023 3/31/2024 Change 3/31/2023 3/31/2024 Change Total Current Cash and Deposits 105.2 139.3 +34.1 Liabilities 2,164.0 2,192.5 +28.5 Receivables, Total Fixed Inventory, etc. 2,626.9 2,777.5 +150.6 Liabilities 1,072.1 1,007.3 (64.8) Total Current Assets 2,732.1 2,916.8
Slide 34: Statement of Cash Flows
Statement of Cash Flows [¥ billions] Cash Flows from Operating Activities 377.4 Net Income before tax 326.8 Depreciation Expense 108.6 Change in Working Capital (39.1) Other (18.9) Cash Flows from Investing Activities (65.8) Purchase of fixed assets (92.7) Sales of assets, etc. 26.9 Cash Flows from
Slide 36: Forecasts for FY2024
Forecasts for FY2023 ◼ 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) 144.6 145.0 +0.4 +0.3% *Brent prices and Aust
Slide 37: Segment Information
Segment Information ◼ 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 +17.9% 26.0 Functional Materials 27.6 31.0 +3.4 +12.4% 2
Slide 38: Segment Information
Segment Information ◼ Factors Affecting Operating + Equity Income [¥ billions] (excluding inventory impact, y-o-y) core products margin (time-lag) Trading, fuel cost, etc. Power, Vietnam, Margin, etc. etc. Bitumen, affiliates, etc. etc. Norway Export Volume Volume Price New business expenses, etc. E
Slide 39: Segment Information: Petroleum, Chemicals, Materials
Segment Information [Petroleum] YoY -¥65.2 bn (FY23: ¥167.2 bn ➡ FY24: ¥102.0 bn) ✓ Decreases mainly due to a loss of the positive time-lag margin earned in the previous FY ✓ Costs increase for fuel due to rising petroleum prices as well as higher logistics fare related to the 2024 problem ✓ Export
Slide 40: Segment Information: Power, Oil E&P, Coal
Segment Information [Power/Renewable Energy] YoY +¥4.6 bn (FY23: -¥7.6 bn ➡ FY24: -¥3.0 bn) ✓ Power business improves following reduction in generated power due to conflicts in the previous FY, etc. ✓ Solar business improves continuous cost reductions from structural reforms as well as the expansion
Slide 41: Financial forecasts (Balance Sheet, Cash Flows)
Financial forecasts（Balance Sheet, Cash Flows) [¥billions] 3/31/2025 3/31/2025 Operating Cash Flows 265 Net Income 177 Current Assets 2,840 Liabilities 3,350 Depreciation Expense 129 Other (41) Fixed Assets 2,300 Net Assets 1,790 Investing Cash Flows (335) Strategic Investments (250) Total Liabiliti
Slide 42: 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 42
Slide 43: Medium-term Plan Topics (1/7)
Topics related to Progress on the Medium-term Plan (1/7) ◼ Participation in the clean ammonia production project in Lake Charles, Louisiana, USA ✓ Project being considered in Louisiana, USA by Mitsubishi Corporation and Proman ✓ Aiming to commence production of 1.15 million tons of clean ammonia per
Slide 44: Medium-term Plan Topics (2/7)
Topics related to Progress on the Medium-term Plan (2/7) ◼ First in Japan to use ammonia combustion as fuel for a commercial naphtha cracking furnace at Tokuyama Complex (achieving over 20% fuel conversion) ✓ Installing ammonia combustion equipment, etc. with IHI Corporation and IHI Plant Corporatio
Slide 45: Medium-term Plan Topics (3/7)
Topics related to Progress on the Medium-term Plan (3/7) ◼ Collaboration with Zen-Noh’s subsidiary to secure SAF feedstocks and develop business in North America ✓ Signed MOU with Zen-Noh Grain Corporation regarding “strategic cooperation in establishing an SAF supply chain.” ✓ Aimed at securing a v
Slide 46: Medium-term Plan Topics (4/7)
Topics related to Progress on the Medium-term Plan (4/7) ◼ Launch of study for establishment of Japan’s largest green hydrogen supply chain in Hokkaido ✓ MOU signed by Idemitsu, ENEOS, and HEPCO ✓ To construct a water electrolysis plant that can produce more than 10,000 tons per year of green hydrog
Slide 47: Medium-term Plan Topics (5/7)
Topics related to Progress on the Medium-term Plan (5/7) ◼ Investment in HIF Global for building synthetic methanol supply chain ✓ First investment by a Japanese company in HIF, which manufactures synthetic fuel (e-fuel)/synthetic methanol (e-methanol) in South America, North America, Australia, and
Slide 48: Medium-term Plan Topics (6/7)
Topics related to Progress on the Medium-term Plan (6/7) ◼ Idemitsu and Mitsui Chemicals to consider consolidating their Chiba ethylene complexes to optimize production ✓ Closure of Idemitsu’s facility and consolidation of production at Mitsui’s facility by FY2027 ✓ Aiming to further collaborate eff
Slide 49: Medium-term Plan Topics (7/7)
Topics related to Progress on the Medium-term Plan (7/7) ◼ Received Medal with Purple Ribbon for contributions to achieving practical use of OLED full-color displays ✓ Masakazu Funabashi of the Electronic Material Department, Advanced Materials Company, was awarded the Medal with Purple Ribbon in Sp
Slide 51: Operating+Equity Income Financial Results
Operating＋Equity Income Financial Results (Exc. Inventory impact, vs. medium-term plan) [¥ billions] Latest forecasts Medium-term plan as of May 2024 announced in November 2022 FY23 FY24 FY25 3-year FY23 FY24 FY25 3-year Petroleum 167.2 102.0 115.0 384.2 73.0 102.0 84.0 259.0 Basic Chemicals 22.0 26
Slide 52: ROE/ROIC Performance
Financial Results ROE/ROIC Performance [%] Category 1 Category 2 FY20 FY21 FY22 FY23 Inc. inventory ROE impact Overall 3.0 21.8 16.8 13.4 Exc. inventory impact Overall 2.6 9.2 14.2 11.3 Exc. inventory ROIC impact Overall 2.8 6.8 6.2 8.4 Exc. inventory Overall for impact existing businesses - - 3.4 4
Slide 53: Stock Price/PBR Performance
Financial Results Stock Price/PBR Performance [¥] [x] 1,200 1.2 PBR(右軸) PBR (RHS) 月間平均株価(左軸) Monthly average stock price (LHS) 1,000 1.0 800 0.8 600 0.6 400 0.4 200 0.2 0 0.0 2022年4月 April 2022 2022年10月 October 2022 2023年4月 April 2023 2023年10月 October 2023 2024年4月 April 2024 53
Slide 54: Financial Results: Net Sales by segment
Financial Results Financial Results ◼ Net Sales by segment [¥ billions] FY2022 FY2023 Change Petroleum 7,403.9 7,080.8 (323.1) (4.4%) Basic Chemicals 666.9 601.6 (65.3) (9.8%) Functional Materials 511.0 515.4 +4.4 +0.9% Power and Renewable Energy 197.1 141.5 (55.5) (28.2%) Resources* 672.1 370.5 (30
Slide 55: Quarterly segment income (cumulative)
Financial Results Financial Results ◼ Quarterly segment income (cumulative, exc. inventory impact) [¥ billions] FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Petroleum 57.4 61.1 1.2 17.3 18.4 105.0 114.1 167.2 Equity income 7.0 12.4 12.8 12.9 4.9 3.8 6.9 9.9 Basic Chemicals 8.1 14.2 11.4 10.1 (1.4) 12.0 21.
Slide 56: Quarterly segment income (Q on Q)
Financial Results Financial Results ◼ Quarterly segment income (Q on Q, exc. inventory impact) [¥ billions] FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Petroleum 57.4 3.7 (59.9) 16.1 18.4 86.6 9.0 53.1 Equity income 7.0 5.4 0.4 0.1 4.9 (1.0) 3.1 3.0 Basic Chemicals 8.1 6.1 (2.8) (1.3) (1.4) 13.4 9.4 0.7 E
Slide 57: Sensitivity
Financial Results Sensitivity ◼ Major items affecting operating profit by changes in assumptions(FY24) Income Assumption Assumption Range of Segment impact Major Factors Items （FY24） fluctuation (¥ billions) Crude oil price 85.0$/bbl ±10$/bbl ±16.0 Fuel cost, time-lag Singapore ー ±5$/bbl Petroleum ±
Slide 58: Sales Volume
Volume Sales Volume ◼ Petroleum [thousand KL,％] FY2022 FY2023 Change Gasoline 12,870 12,597 (273) (2.1%) Naphtha 374 351 (24) (6.3%) Jet Fuel 2,366 2,502 +136 +5.7% Kerosene 3,701 3,557 (144) (3.9%) Diesel Oil 10,227 10,031 (196) (1.9%) Heavy Fuel Oil A 3,286 3,135 (151) (4.6%) Heavy Fuel Oil C 2,70
Slide 59: Sales Volume
Volume Sales Volume ◼ Basic Chemicals [kt,%] FY2022 FY2023 Change Basic Chemicals 3,428 3,497 +69 +2.0% ◼ Functional Materials [KKL,kt,%] FY2022 FY2023 Change Lubricants 1,152 1,136 (16) (1.4%) Performance Chemicals 643 672 +29 +4.6% *Lubricants include sales overseas ◼ Power/Renewable Energy [Mkwh,
Slide 60: Production Volume
Volume Production Volume ◼ Resources (Oil E&P) [KBOED,%] FY2022 FY2023 Change Vietnam 15.0 14.1 (0.9) (5.8%) Norway 15.6 13.8 (1.8) (11.7%) Total('000BOED) 30.5 27.9 (2.7) (8.8%) Total('000BOE) 11,149 10,170 (979) (8.8%) *The numbers reflect our rights and ownership ratios based on our equity share
Slide 61: Sales Volume (Forecasts)
Volume Sales Volume(Forecasts) ◼ Petroleum [KKL,％] FY 2023 FY 2024 Change Gasoline 12,597 12,370 (227) (1.8%) Naphtha 351 300 (51) (14.5%) Jet Fuel 2,502 2,570 +68 +2.7% Kerosene 3,557 3,430 (127) (3.6%) Diesel Oil 10,031 9,850 (181) (1.8%) Heavy Fuel Oil A 3,135 3,060 (75) (2.4%) Heavy Fuel Oil C 2
Slide 62: Sales Volume (Forecast)
Volume Sales Volume(Forecast) ◼ Basic Chemicals [kt,%] FY 2023 FY 2024 Change Basic Chemicals 3,497 3,200 (297) (8.5%) ◼ Functional Materials [KKL,kt,%] FY 2023 FY 2024 Change Lubricants 1,136 1,135 (1) (0.1%) Performance Chemicals 672 570 (102) (15.2%) *includes sales overseas ◼ Power/Renewable Ene
Slide 63: Production Volume (Forecasts)
Volume Production Volume(Forecasts) ◼ Resources (Oil E&P) [KBOED,%] FY 2023 FY 2024 Change Norway 14.1 13.0 (1.1) (7.5%) Vietnam 13.8 12.4 (1.4) (10.0%) Total('000BOED) 27.9 25.4 (2.4) (8.8%) Total('000BOE) 10,170 9,303 (866) (8.5%) *The numbers reflect our rights and ownership ratios based on our e
Slide 64: 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 64
Slide 65: Gasoline-Crude Oil (Domestic spot price and spread)
Product market price Gasoline-Crude Oil(Domestic spot price and spread) [Price :JPY/L] [Spread：JPY/L] 140 25 Spread Crude oil 120 Gasoline 20 100 15 80 60 10 40 5 20 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 65
Slide 66: Diesel-Crude Oil (Domestic spot price and spread)
Product market price Diesel-Crude Oil(Domestic spot price and spread) [Price :JPY/L] [Spread：JPY/L] 140 25 Spread Crude oil 120 Diesel oil 20 100 15 80 60 10 40 5 20 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 66
Slide 67: Gasoline-Crude Oil (Singapore spot price and spread)
Product market price Gasoline-Crude Oil(Singapore spot price and spread) [Price :USD/bbl] [Spread：USD/bbl] 160 40 Spread 140 35 Dubai Gasoline 30 120 25 100 20 80 15 60 10 40 5 20 0 0 -5 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 67
Slide 68: Diesel-Crude Oil (Singapore spot price and spread)
Product market price Diesel-Crude Oil(Singapore spot price and spread) [Price :USD/bbl] [Spread：USD/bbl] 180 70 Spread 160 Dubai 60 Diesel Oil 140 50 120 100 40 80 30 60 20 40 10 20 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 68
Slide 69: 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 1,200 Naptha 500 PX MX 1,000 400 800 300 600 200 400 100 200 0 0 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 69
Slide 70: Styrene Monomer-Naphtha
Product market price Styrene Monomer-Naphtha (price and spread) [Price :USD/ton] [Spread：USD/ton] 1,600 800 SM spread 1,400 Naptha 700 SM 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 70
Slide 71: Operational Data
Operation Operational Data ◼ Refineries Utilization FY2019 FY2020 FY2021 FY2022 FY2023 87% 78% 77% 83％ 78％ *on BCD basis(including regular maintenance) ◼ Number of Service Stations FY2019 FY2020 FY2021 FY2022 FY2023 6,384 6,311 6,216 6,136 5,986 71
Slide 72: 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 73: 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 74: 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 75: 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 76: 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 77: 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 78: 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 79: 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 80: 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 Co.,Ltd. — FY2023 Earnings Presentation on 6ix

Idemitsu Kosan — FY2023 Earnings Presentation

Slide 1: Presentation on Results for FY2023

Slide 2: Table of Contents

Slide 3: Initiatives aimed at enhancing corporate and equity value

Slide 4: Progress on the Medium-Term Plan

Slide 5: Overview of Initiatives toward FY25

Slide 6: Further improving capital efficiency in existing businesses

Slide 7: ROIC by Segment: Key Initiatives (1)

Slide 8: ROIC by Segment: Key Initiatives (2)

Slide 9: ROIC by Segment: Key Initiatives (3)

Slide 10: ROIC by Segment: Key Initiatives (4)

Slide 11: ROIC by Segment

Slide 12: Further Profit Improvement in Existing Businesses

Slide 13: Reallocating cash

Slide 14: Screening Results of New Business Contributing to CN

Slide 15: Investment Allocation (FY2023~2030)

Slide 16: Reviewing the Capital Structure

Slide 17: 3-year Cash Flow Allocation (FY2023~2025)

Slide 18: Achieving GHG reduction targets

Slide 19: Progress on FY2030 Scope1+2 Reduction Targets

Slide 20: Highlights

Slide 21: FY2023 Results

Slide 22: FY2024 Forecasts and Shareholder Returns

Slide 23: Results for FY2023

Slide 24: Topics (1/2)

Slide 25: Topics (2/2)

Slide 26: Operating Environment

Slide 27: Overview

Slide 28: Segment Information

Slide 29: Segment Information

Slide 30: Segment Information: Petroleum

Slide 31: Segment Information: Chemicals, Materials, Power

Slide 32: Segment Information: Oil E&P and Coal

Slide 33: Balance Sheet

Slide 34: Statement of Cash Flows

Slide 35: Forecasts for FY2024

Slide 36: Forecasts for FY2024

Slide 37: Segment Information

Slide 38: Segment Information

Slide 39: Segment Information: Petroleum, Chemicals, Materials

Slide 40: Segment Information: Power, Oil E&P, Coal

Slide 41: Financial forecasts (Balance Sheet, Cash Flows)

Slide 42: Progress on the Medium-Term Plan

Slide 43: Medium-term Plan Topics (1/7)

Slide 44: Medium-term Plan Topics (2/7)

Slide 45: Medium-term Plan Topics (3/7)

Slide 46: Medium-term Plan Topics (4/7)

Slide 47: Medium-term Plan Topics (5/7)

Slide 48: Medium-term Plan Topics (6/7)

Slide 49: Medium-term Plan Topics (7/7)

Slide 50: Reference

Slide 51: Operating+Equity Income Financial Results

Slide 52: ROE/ROIC Performance

Slide 53: Stock Price/PBR Performance

Slide 54: Financial Results: Net Sales by segment

Slide 55: Quarterly segment income (cumulative)

Slide 56: Quarterly segment income (Q on Q)

Slide 57: Sensitivity

Slide 58: Sales Volume

Slide 59: Sales Volume

Slide 60: Production Volume

Slide 61: Sales Volume (Forecasts)

Slide 62: Sales Volume (Forecast)

Slide 63: Production Volume (Forecasts)

Slide 64: Crude Oil Prices (Dubai and Brent)

Slide 65: Gasoline-Crude Oil (Domestic spot price and spread)

Slide 66: Diesel-Crude Oil (Domestic spot price and spread)

Slide 67: Gasoline-Crude Oil (Singapore spot price and spread)

Slide 68: Diesel-Crude Oil (Singapore spot price and spread)

Slide 69: Para-Xylene, Mixed Xylene-Naphtha

Slide 70: Styrene Monomer-Naphtha

Slide 71: Operational Data

Slide 72: Overview of the Company

Slide 73: Petroleum Segment

Slide 74: Basic Chemicals Segment

Slide 75: Functional Materials Segment (1/2)

Slide 76: Functional Materials Segment (2/2)

Slide 77: Power/Renewable Energy Segment

Slide 78: Resources Segment (Gas and Oil E&P)

Slide 79: Resource Segment (Coal)