Idemitsu Kosan Co., Ltd. TSE:5019
Idemitsu Kosan : Consolidated Financial Results for the fiscal Year Ended March 31, 2026
Source: MarketScreener
May 12, 2026
Consolidated Financial Results [Japan GAAP] for the fiscal Year Ended March 31, 2026Company Name: Idemitsu Kosan Co.,Ltd. (URL https://www.idemitsu.com/en/index.html) Company Code: 5019, Shares listed on: Tokyo Stock Exchange
Name of Representative: Sakai Noriaki, Representative Director & Chief Executive Officer Contact Person: Sasaki Shinko, General Manager, Investor Relations Office, Finance Department Telephone: +81-3-3213-9307
Scheduled date of ordinary general meeting of shareholders: June 24, 2026 Scheduled date of commencement of dividend payments: June 3, 2026 Scheduled date of filing of Securities Report: June 17, 2026
Supplemental materials for the financial results: Yes
Financial results presentation: Yes (for institutional investors and analysts)
(Figures less than ¥1 million are rounded off)
Consolidated Financial Results for the fiscal year ended March 31, 2026
Consolidated operating results (Percentages represent changes from prior year)
Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
For the fiscal year
¥million
%
¥million
%
¥million
%
¥million
%
ended March 31, 2026
8,105,891
(11.8)
212,203
30.8
229,646
6.9
171,914
65.2
ended March 31, 2025
9,190,225
5.4
162,185
(53.2)
214,764
(44.3)
104,055
(54.5)
Notes: Comprehensive income March 31, 2026: ¥242,856 million 124.2% March 31, 2025: ¥108,319 million (61.5)%
Net income per share
Diluted net income per share
Return on equity
Ratio of ordinary income to total assets
Ratio of operating income to net sales
For the fiscal year
¥
¥
%
%
%
ended March 31, 2026
140.38
-
9.4
4.5
2.6
ended March 31, 2025
77.83
-
5.9
4.4
1.8
Reference: Equity in earnings (losses) of nonconsolidated subsidiaries and affiliates March 31, 2026: ¥2,456 million March 31, 2025: ¥22,604 million
Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
As of
¥million
¥million
%
¥
March 31, 2026
5,328,792
1,951,099
36.0
1,574.46
March 31, 2025
4,775,586
1,737,699
36.0
1,404.80
Reference: Total equity as of March 31, 2026: ¥1,918,125 million March 31, 2025: ¥1,720,368 million
Consolidated cash flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at the
end of period
For the fiscal year
¥million
¥million
¥million
¥million
ended March 31, 2026
392,429
(291,632)
(104,926)
157,088
ended March 31, 2025
476,742
(118,514)
(343,450)
164,251
Dividends
Cash dividends per share
Total dividend
amount
Payout ratio (Consolidated)
Dividends on equity ratio (Consolidated)
As of Jun.30
As of Sep.30
As of Dec.31
As of Mar.31
Total
For the fiscal year
¥
¥
¥
¥
¥
¥million
%
%
ended March 31, 2025
-
18.00
-
18.00
36.00
46,122
46.3
2.6
ended March 31, 2026
-
18.00
-
18.00
36.00
44,084
25.6
2.4
ending March 31, 2027 (Forecast)
-
18.00
-
18.00
36.00
58.5
Forecasts of Consolidated Financial Results for the fiscal year ending March 31, 2027
(Percentages represent changes from prior year)
Income before tax excluding financial costs (*2) (excluding effect of inventory valuation) | Net income attributable to owners of the parent (excluding effect of inventory valuation) | Net income attributable to owners of the parent | Basic net income per share | ||||
Fiscal year ending March 31, 2027(*1) | ¥million | % | ¥million | % | ¥million | % | ¥ |
140,000 | - | 90,000 | - | 75,000 | - | 62.00 | |
Note 1: As the Idemitsu Group will voluntarily adopt IFRS from the first quarter of the fiscal year ending March 31, 2027, the forecast of consolidated financial results above has been prepared in accordance with IFRS. Therefore, no comparison with the consolidated financial results for the fiscal year ended March 31, 2026, which were prepared under Japan GAAP, is presented.
2: Income before tax excluding financial costs corresponds to a measure equivalent to operating income under Japan GAAP, mainly adjusted by adding or deducting equity in earnings or loss of nonconsolidated subsidiaries and affiliates, dividend income, gain or loss on foreign exchange arising from operating activities, and extraordinary income or loss.
* Notes
Changes of material consolidated subsidiaries during the fiscal year: Yes Newly consolidated companies: 1 (Fuji Oil Company.,Ltd.)
Changes in accounting policies, accounting estimates and restatement
Changes in accounting policies arising from revision of accounting standards: None
Changes arising from other factors: None
Changes in accounting estimates: None
Restatement: None
Number of shares issued (common stock)
Number of shares issued (including treasury stock)
As of March 31, 2026: 1,288,747,390 As of March 31, 2025: 1,358,078,690
Number of shares of treasury stock
As of March 31, 2026: 70,475,150 As of March 31, 2025: 133,441,710
Weighted average number of shares outstanding during the period For the fiscal year ended March 31, 2026: 1,224,619,256
For the fiscal year ended March 31, 2025: 1,336,912,916
(Reference)
Nonconsolidated Financial Results for the fiscal year ended March 31, 2026
Nonconsolidated operating results (Percentages represent changes from prior year)
Net sales
Operating income
Ordinary income
Net income
For the fiscal year
¥million
%
¥million
%
¥million
%
¥million
%
ended March 31, 2026
5,812,726
(11.7)
95,147
193.1
194,973
108.3
143,434
395.0
ended March 31, 2025
6,580,518
(1.0)
32,465
(80.3)
93,612
(54.8)
28,975
(74.2)
Net income per share
Diluted net income per share
For the fiscal year
¥
¥
ended March 31, 2026
117.32
-
ended March 31, 2025
21.67
-
Nonconsolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
As of
¥million
¥million
%
¥
March 31, 2026
3,903,485
1,076,737
27.6
883.82
March 31, 2025
3,788,358
981,426
25.9
801.40
Reference: Total equity as of March 31, 2026: ¥1,076,737 million March 31, 2025: ¥981,426 million
(Reason for variance in nonconsolidated financial results compared to the results in the previous fiscal year)
The Idemitsu Group conducts its business primarily through Idemitsu Kosan Co.,Ltd. Therefore, the reason for variance in its nonconsolidated financial results to the results in the previous fiscal year is almost identical to the reason for variance in the consolidated financial results. Therefore, please refer to page 2 "1. Overview of Operating Results and Others (1) Overview of Operating Results" of the Appendix.
This report is out of the scope of audit performed by certificated public accountants or audit firms.
The financial forecasts in this document are based on information currently available and certain assumptions deemed reasonable. Actual operating results may differ from these forecasts due to various factors. Additionally, for the assumptions used for the forecasts of the financial results, please refer to page 5 "Forecasts of consolidated financial results for the fiscal year ending March 31, 2027" of the Appendix.
Contents of the Appendix
1. Overview of Operating Results and Others……………………………………………………………..……………….
2
(1) Overview of Operating Results for the fiscal year ended March 31, 2026…………………….…………….………
2
(2) Overview of Financial Position for the fiscal year ended March 31, 2026……………………………………………
5
(3) Basic Policy on Distribution of Profits/Dividends for the fiscal year ended March 31, 2026 and the fiscal year ending March 31, 2027
………………………………………..
7
2. Principal Policy for Selecting Financial Reporting Framework…………………………………………………….…
7
3. Consolidated Financial Statements and Major Notes…………………………………………………………………
8
(1) Consolidated Balance Sheets……………………………………………………………………………………………
8
(2) Consolidated Statements of Income and Comprehensive Income……………………………………………………
10
1) Consolidated Statements of Income…………………………………………………………………………………
10
2) Consolidated Statements of Comprehensive Income…..…………………………………………………………
11
(3) Consolidated Statements of Changes in Net Assets……………………………………………………………………
12
(4) Consolidated Statements of Cash Flows ………………………………………………………………………………
14
(5) Notes on the Consolidated Financial Statements………………………………………………………………………
16
1) Notes on Going Concern Assumption……………………………………………………………………………
16
2) Notes on Changes in Scope of Consolidation or Scope of Application of the Equity Method……………………
16
3) Notes on the Consolidated Segment Information……………………………………………………………………
16
4) Per Share Information…………………………………………………………………………………………………
21
5) Notes on Business Combination………………………………………………………………………………………
21
[Appendix]
-
Overview of Operating Results and Others
Overview of Operating Results for the fiscal year ended March 31, 2026
General economic conditions and environment surrounding the Idemitsu Group
During the current fiscal year, the Japanese economy was on a moderate recovery trend, supported by improvements in employment and income conditions. Meanwhile, close attention must continue to be paid to developments in U.S. trade policy and foreign exchange rates, and the worsening situation in Iran and the blockade of the Strait of Hormuz in the Middle East have led to instability in crude oil prices and energy demand. As a result, the business environment surrounding corporate activities remains uncertain.
Domestic sales of petroleum products continued to trend downward gradually, driven by structural changes such as a decline in the number of passenger cars in use, improvements in fuel efficiency, and greater efficiency in logistics.
Crude oil prices fell due to concerns about economic deterioration, mainly following the announcement of tariffs by the United States in early April 2025, as well as the perception of oversupply after OPEC Plus announced production increases. However, prices began to rise in June due to geopolitical risks stemming from the situation in Iran and Israel, and the tightening of U.S. sanctions against Russia. From the end of February 2026, they rose sharply over a short period due to the worsening situation in Iran and the blockade of the Strait of Hormuz. As a result, the average Dubai crude oil price fell by $6.7/bbl to
$71.8/bbl.
As for the dollar-to-yen exchange rate, the yen had strengthened due to economic deterioration following the announcement of tariffs by the United States, as well as speculation that the U.S. government may let the dollar fall. Since then, however, the yen has repeatedly risen and fallen, affected by the U.S. government's tariff negotiations and geopolitical risks stemming from the situation in Iran and Israel. Since the inauguration of the Takaichi administration, the yen has depreciated due to proactive fiscal policy and monetary easing, and the worsening situation in Iran has further weakened the yen. Consequently, the average exchange rate against the dollar decreased by ¥1.9/$ from the previous fiscal year to ¥150.7/$.
Operating results for the fiscal year ended March 31, 2026
The Idemitsu Group's net sales for fiscal year ended March 31, 2026 were ¥8,105.9 billion, down 11.8% year on year, mainly due to falling crude oil prices in the petroleum segment.
Cost of sales was ¥7,351.4 billion, down 13.5% year on year. Selling, general, and administrative expenses totaled ¥542.3 billion, up 2.9% year on year.
Operating income was ¥212.2 billion, up 30.8% year on year, mainly because the positive time lag effects from the sharp rise in crude oil prices in the petroleum segment outweighed the impact of the decline in coal market conditions in the resources segment.
Non-operating income was ¥17.4 billion, down 66.8% year on year, mainly due to a decrease in equity in earnings of nonconsolidated subsidiaries and affiliates. Consequently, ordinary income was ¥229.6 billion, up 6.9% year on year.
Net extraordinary loss was ¥7.5 billion, an increase of ¥48.9 billion year on year, mainly due to impairment losses on tangible fixed assets, despite gains on bargain purchase and other gains.
Income tax expenses, which consist of income taxes-current and income taxes-deferred, amounted to ¥57.0 billion, up 1.2% year on year. Consequently, net loss attributable to noncontrolling interests was ¥6.8 billion, a decrease of 4.8 billion year on year.
As a result, net income attributable to owners of the parent was ¥171.9 billion, up 65.2% year on year.
Net sales by segment
(Unit: ¥Billion)
Segment
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Change (Decrease)
Amount
%
Petroleum
7,696.4
6,793.4
(903.0)
(11.7)%
Basic chemicals
587.2
491.4
(95.8)
(16.3)%
Functional materials
503.4
503.2
(0.2)
(0.0)%
Power and renewable energy
127.6
98.2
(29.4)
(23.0)%
Resources
265.2
203.5
(61.7)
(23.3)%
Others
10.5
16.3
+5.8
+55.7%
Total
9,190.2
8,105.9
(1,084.3)
(11.8)%
Segment income (loss) by segment
(Unit: ¥Billion)
Segment
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Change (Decrease)
Amount
%
Petroleum
: excluding effect of inventory valuation
122.1
177.7
+55.6
+45.5%
152.0
207.1
+55.1
+36.3%
Basic chemicals
(8.0)
(6.8)
+1.1
-
Functional materials
28.2
33.4
+5.2
+18.5%
Power and renewable energy
(12.3)
(1.8)
+10.5
-
Resources
77.4
33.1
(44.2)
(57.2)%
Others
1.2
0.9
(0.2)
(20.0)%
Reconciliation
(23.8)
(21.8)
+2.0
-
Total
: excluding effect of inventory valuation
184.8
214.7
+29.9
+16.2%
214.7
244.1
+29.4
+13.7%
Note: Segment income (loss) is the total of operating income (loss) and equity in earnings (losses) of nonconsolidated subsidiaries and affiliates.
[Petroleum segment]
Net sales in the petroleum segment were ¥6,793.4 billion, down 11.7% year on year, mainly due to a decline in crude oil prices. Segment income was ¥177.7 billion, up 45.5% year on year, mainly due to positive time lag effects from the rise in crude oil prices following the blockade of the Strait of Hormuz despite increased expenses such as large-scale periodic repairs.
[Basic chemicals segment]
Net sales in the basic chemicals segment were ¥491.4 billion, down 16.3% year on year, and segment loss was ¥6.8 billion, an increase of ¥1.1 billion year on year, mainly due to low product margins despite positive time lag effects caused by the sharp rise in naphtha prices in March.
[Functional materials segment]
Net sales in the functional materials segment were ¥503.2 billion, down 0.0% year on year, and segment income was ¥33.4 billion, up 18.5% year on year, mainly due to strong overseas sales of lubricants business and the contributions from new consolidated subsidiaries in the agri life business.
[Power and renewable energy segment]
Net sales in the power and renewable energy segment were ¥98.2 billion, down 23.0% year on year, with segment loss of ¥1.8 billion, an increase of ¥10.5 billion year on year, mainly due to improved earnings following the resolution of the power plant issues in the previous year and a reduction in depreciation expenses resulting from impairment losses on biomass power generation facilities.
[Resources segment]
(Oil/natural gas exploration and production and geothermal energy business)
Net sales in the oil/natural gas exploration and production and geothermal energy business were ¥38.8 billion, down 4.0% year on year, with segment income of ¥14.0 billion, down 24.8% year on year, mainly due to a decrease in production volume and a decline in crude oil prices.
(Coal business and others)
Net sales in the coal business and others were ¥164.7 billion, down 26.8% year on year, and segment income was ¥19.1 billion, down 67.5% year on year, mainly due to price factors associated with a decline in the coal market.
As a result of the above, total net sales of the resources segment were ¥203.5 billion, down 23.3% year on year, and segment income was ¥33.1 billion, down 57.2% year on year.
(Other segments)
Net sales in other segment were ¥16.3 billion, up 55.7% year on year, and segment income was ¥0.9 billion, down 20.0% year on year.
Forecasts of consolidated financial results for the fiscal year ending March 31, 2027
As the Idemitsu Group will voluntarily adopt International Financial Reporting Standards (IFRS) from the first quarter of the fiscal year ending March 31, 2027, the consolidated earnings forecast for the next fiscal year has been prepared in accordance with IFRS. Regarding the forecasts of consolidated financial results for the fiscal year ending March 31, 2027, the Company expects income before tax excluding financial costs (excluding effect of inventory valuation) of ¥140.0 billion, net income attributable to owners of the parent (excluding effect of inventory valuation) of ¥90.0 billion and net income attributable to owners of the parent of ¥75.0 billion.
The above forecasts of consolidated financial results for the fiscal year ending March 31, 2027, are based on the assumptions below:
Dubai Crude Oil Price: US$81.3/bbl Foreign Exchange Rate: ¥151.3/US$
The above forecasts for the fiscal year ending March 31, 2027 are based on information available as of the date of publication of this document. The actual operating results may differ from the forecasts due to various factors in the future.
Overview of Financial Position for the fiscal year ended March 31, 2026
Analysis of financial position Summarized Consolidated Balance Sheets
(Unit: ¥Billion)
As of March 31, 2025
As of March 31, 2026
Change
Current assets
2,649.9
2,965.7
+315.8
Fixed assets
2,125.7
2,363.1
+237.4
Total assets
4,775.6
5,328.8
+553.2
Current liabilities
2,097.4
2,351.4
+254.0
Long-term liabilities
940.5
1,026.3
+85.8
Total liabilities
3,037.9
3,377.7
+339.8
Total net assets
1,737.7
1,951.1
+213.4
Total liabilities and net assets
4,775.6
5,328.8
+553.2
Total assets
Total assets increased by ¥553.2 billion from the end of the previous fiscal year to
¥5,328.8 billion, mainly due to the inclusion of Fuji Oil Co.,Ltd. in the scope of consolidation.
Total liabilities
Total liabilities as of March 31, 2026, were ¥3,377.7 billion, an increase of ¥339.8 billion from the end of the previous fiscal year, mainly due to the inclusion of Fuji Oil Co.,Ltd. in the scope of consolidation and an increase in interest-bearing debt.
Total net assets
Total net assets as of March 31, 2026, were ¥1,951.1 billion, an increase of ¥213.4
billion from the end of the previous fiscal year, mainly due to net income attributable to owners of the parent and an increase in foreign currency translation adjustments, despite dividend payments.
As a result, the equity ratio stood at 36.0% as of March 31, 2026, down 0.0 point compared with the end of the previous fiscal year of 36.0%. The Net D/E ratio as of March 31, 2026, was 0.6 (end of the previous fiscal year: 0.6).
Analysis of cash flows
Summarized Consolidated Statements of Cash Flows
(Unit: ¥Billion)
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Cash flows from operating activities
476.7
392.4
Cash flows from investing activities
(118.5)
(291.6)
Cash flows from financing activities
(343.5)
(104.9)
Effect of exchange rate change on cash and cash equivalents
1.8
7.4
Net increase (decrease) in cash and cash equivalents
16.6
3.3
Cash and cash equivalents at the beginning of period
136.9
164.3
Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation
0.2
2.8
Increase (decrease) in cash and cash equivalents resulting from change of fiscal year-end of subsidiaries
10.6
(13.3)
Cash and cash equivalents at the end of period
164.3
157.1
Cash and cash equivalents as of March 31, 2026, were ¥157.1 billion, a decrease of ¥7.2 billion compared with the end of the previous fiscal year. Major factors for this decrease are as follows:
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥392.4 billion, as factors increasing funds, such as income before taxes, depreciation and amortization, as well as decreases in accounts receivable and inventories, exceeded factors decreasing funds, such as decreases in notes and accounts payable, trade, and accounts payable, other.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥291.6 billion, mainly due to the acquisition of tangible fixed assets through investments for the maintenance and replacement of refinery facilities.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥104.9 billion, mainly due to the repayment of interest-bearing debt and dividend payments.
Basic Policy on Distribution of Profits/Dividends for the fiscal year ended March 31, 2026 and the fiscal year ending March 31, 2027
With respect to the year-end dividends for the fiscal year ended March 31, 2026, the Company has decided to pay ¥18 per share. The annual dividend is expected to be ¥36 per share. With the understanding that shareholder returns are positioned as a key management priority, based on the policy shown in the "Annoucement on the Medium-term Management Plan (FY2026-2030) and Voluntary Adoption of IFRS" which was published on May 12, 2026, the Company will maintain a total payout ratio of 50% or more of net income attributable to owners of the parent (excluding effect of inventory valuation) for the fiscal years from 2026 through 2030 as shareholder returns, and will introduce a progressive dividend policy with the annual dividend of ¥36 per share for fiscal year ended March 2026 as the minimum level, thereby achieving more stable shareholder returns.
-
Principal Policy for Selecting Financial Reporting Framework
The Idemitsu Group will voluntarily adopt International Financial Reporting Standards (IFRS) for its consolidated financial statements from the first quarter of the fiscal year ending March 2027, replacing Japanese GAAP.
-
Consolidated Financial Statements and Major Notes
Consolidated Balance Sheets
(Unit: ¥Million)
As of March 31, 2025
As of March 31, 2026
Assets
Current assets:
Cash and deposits
165,762
212,306
Notes and accounts receivable, trade
817,349
841,806
Inventories
1,266,953
1,375,562
Accounts receivable, other
298,776
342,029
Other
104,644
197,527
Less: Allowance for doubtful accounts
(3,628)
(3,558)
Total current assets
2,649,858
2,965,674
Fixed assets:
Property, plant and equipment:
Buildings and structures, net
237,092
248,270
Machinery, equipment and vehicles, net
258,139
321,455
Land
736,655
772,076
Construction in progress
55,220
82,915
Other, net
86,916
98,796
Total property, plant and equipment
1,374,024
1,523,513
Intangible fixed assets:
Goodwill
124,348
129,776
Other
130,231
130,422
Total intangible fixed assets
254,580
260,199
Investments and other assets:
Investment securities
305,764
339,979
Long-term loans receivable
56,490
97,839
Assets for employees' retirement benefits
75,182
90,328
Deferred tax assets
15,946
17,592
Other
97,869
91,916
Less: Allowance for doubtful accounts
(54,130)
(58,251)
Total investments and other assets
497,122
579,404
Total fixed assets
2,125,727
2,363,117
Total assets
4,775,586
5,328,792
(Unit: ¥Million)
As of March 31, 2025
As of March 31, 2026
Liabilities
Current liabilities:
Notes and accounts payable, trade
824,413
852,648
Short-term loans payable
479,642
503,466
Commercial paper
166,853
244,726
Current portion of bonds payable
30,000
20,000
Accounts payable, other
426,313
433,703
Income taxes payable
9,793
48,650
Provision for bonuses
16,706
17,387
Other
143,684
230,827
Total current liabilities
2,097,407
2,351,410
Long-term liabilities:
Bonds payable
110,000
100,000
Long-term loans payable
409,879
494,087
Deferred tax liabilities
53,175
58,273
Deferred tax liability related to land
revaluation
92,878
95,058
Liability for employees' retirement benefits
49,064
49,443
Reserve for repair work
91,117
104,409
Provision for losses related to contracts
10,106
-
Asset retirement obligations
40,013
44,550
Other
84,242
80,458
Total long-term liabilities
940,478
1,026,281
Total liabilities
3,037,886
3,377,692
Net assets
Shareholders' equity:
Common stock
168,351
168,351
Capital surplus
354,693
278,253
Retained earnings
1,111,225
1,248,391
Treasury stock
(139,690)
(68,785)
Total shareholders' equity
1,494,580
1,626,211
Accumulated other comprehensive income:
Unrealized gains (losses) on available-for-sale securities
4,184
5,755
Deferred gains (losses) on hedging activities,
net
(1,014)
1,473
Surplus from land revaluation
137,848
136,390
Foreign currency translation adjustments
51,873
108,311
Defined retirement benefit plans
32,896
39,982
Total accumulated other comprehensive income
225,788
291,914
Noncontrolling interests
17,330
32,974
Total net assets
1,737,699
1,951,099
Total liabilities and net assets
4,775,586
5,328,792
Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
(Unit: ¥Million)
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Net sales
9,190,225
8,105,891
Cost of sales
8,500,812
7,351,406
Gross profit
689,412
754,484
Selling, general and administrative expenses
527,226
542,280
Operating income
162,185
212,203
Non-operating income:
Interest income
17,085
18,637
Equity in earnings of nonconsolidated subsidiaries
and affiliates, net
22,604
2,456
Dividend income
4,922
3,851
Gain on foreign exchange, net
20,120
8,761
Other
8,014
11,202
Total non-operating income
72,747
44,910
Non-operating expenses:
Interest expense
16,731
18,089
Other
3,436
9,378
Total non-operating expenses
20,167
27,467
Ordinary income
214,764
229,646
Extraordinary income:
Gain on sales of fixed assets
7,664
3,051
Gain on sales of investment securities
70
2,603
Gain on reversal of loss on valuation of shares of subsidiaries and affiliates
3,239
-
Gain on step acquisition
-
8,148
Gain on bargain purchase
-
8,428
Other
2,119
5,297
Total extraordinary income
13,094
27,529
Extraordinary loss:
Impairment loss on fixed assets
27,219
18,095
Loss on sales of fixed assets
3,464
137
Loss on disposals of fixed assets
10,292
11,465
Provision of allowance for doubtful accounts
12,870
-
Provision for losses related to contracts
10,328
-
Other
5,321
5,341
Total extraordinary loss
69,498
35,039
Income before income taxes
158,361
222,136
Income taxes-current
51,234
66,244
Income taxes-deferred
5,114
(9,209)
Total income taxes
56,349
57,035
Net income
102,011
165,100
Net loss attributable to noncontrolling interests
(2,043)
(6,814)
Net income attributable to owners of the parent
104,055
171,914
Consolidated Statements of Comprehensive Income
(Unit: ¥Million)
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Net income
102,011
165,100
Other comprehensive income:
Unrealized gains (losses) on available-for-sale securities
(2,055)
1,950
Deferred gains (losses) on hedging activities, net
1,996
3,250
Surplus from land revaluation
(10,915)
(449)
Foreign currency translation adjustments
7,008
59,732
Defined retirement benefit plans
6,977
7,232
Share of other comprehensive income in equity
method subsidiaries and affiliates
3,295
6,039
Total other comprehensive income
6,307
77,755
Comprehensive income
108,319
242,856
Comprehensive income attributable to:
Owners of the parent
110,281
248,786
Noncontrolling interests
(1,962)
(5,930)
Consolidated Statements of Changes in Net Assets For the fiscal year ended March 31, 2025
(Unit: ¥Million)
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Balance at the beginning of current period
168,351
390,341
1,037,716
(11,006)
1,585,403
Changes of items during the period:
Dividends from surplus
(46,140)
(46,140)
Net income attributable to owners of the parent
104,055
104,055
Change of fiscal term of consolidated subsidiaries
13,159
13,159
Change in scope of consolidation
(4,084)
(4,084)
Acquisitions of treasury stock
(165,320)
(165,320)
Disposals of treasury stock
0
136
136
Cancellation of treasury shares
(36,499)
36,499
-
Change in ownership interest of parent due to transactions with non-controlling interests
851
851
Adjustment due to sales and revaluation of land
6,519
6,519
Net changes of items other than shareholders' equity
Total changes of items during the period
-
(35,648)
73,509
(128,683)
(90,822)
Balance at the end of current period
168,351
354,693
1,111,225
(139,690)
1,494,580
Accumulated other comprehensive income
Noncontrolling interests
Total net assets
Unrealized gains (losses) on available
-for-sale securities
Deferred gains (losses) on hedging activities, net
Surplus from land revaluation
Foreign currency translation adjustments
Defined retirement benefit plans
Total accumulated other comprehensive
income
Balance at the beginning of current period
5,918
(4,255)
155,282
31,652
25,895
214,492
12,636
1,812,531
Changes of items during the period:
Dividends from surplus
(46,140)
Net income attributable to owners of the parent
104,055
Change of fiscal term of consolidated subsidiaries
13,159
Change in scope of consolidation
(4,084)
Acquisitions of treasury stock
(165,320)
Disposals of treasury stock
136
Cancellation of treasury shares
-
Change in ownership interest of parent due to transactions with non-
controlling interests
851
Adjustment due to sales and revaluation of land
(6,519)
(6,519)
-
Net changes of items other than shareholders' equity
(1,734)
3,240
(10,915)
20,221
7,001
17,814
4,694
22,509
Total changes of items during the period
(1,734)
3,240
(17,434)
20,221
7,001
11,295
4,694
(74,832)
Balance at the end of current period
4,184
(1,014)
137,848
51,873
32,896
225,788
17,330
1,737,699
For the fiscal year ended March 31, 2026
(Unit: ¥Million)
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Balance at the beginning of current period
168,351
354,693
1,111,225
(139,690)
1,494,580
Changes of items during the period:
Dividends from surplus
(44,199)
(44,199)
Net income attributable to owners of the parent
171,914
171,914
Change of fiscal term of consolidated subsidiaries
929
929
Change in scope of consolidation
7,511
7,511
Acquisitions of treasury stock
(2,309)
(2,309)
Disposals of treasury stock
(0)
0
0
Cancellation of treasury shares
(73,215)
73,215
-
Change in ownership interest of parent due to transactions with non-controlling
interests
(3,224)
(3,224)
Adjustment due to sales and revaluation of land
1,008
1,008
Net changes of items other than shareholders' equity
Total changes of items during the period
-
(76,440)
137,165
70,905
131,631
Balance at the end of current period
168,351
278,253
1,248,391
(68,785)
1,626,211
Accumulated other comprehensive income
Noncontrolling interests
Total net assets
Unrealized gains (losses) on available
-for-sale securities
Deferred gains (losses) on hedging activities, net
Surplus from land revaluation
Foreign currency translation adjustments
Defined retirement benefit plans
Total accumulated other comprehensiv e income
Balance at the beginning of current period
4,184
(1,014)
137,848
51,873
32,896
225,788
17,330
1,737,699
Changes of items during the period:
Dividends from surplus
(44,199)
Net income attributable to owners of the parent
171,914
Change of fiscal term of consolidated subsidiaries
929
Change in scope of consolidation
7,511
Acquisitions of treasury stock
(2,309)
Disposals of treasury stock
0
Cancellation of treasury shares
-
Change in ownership interest of parent due to transactions with non-
controlling interests
(3,224)
Adjustment due to sales and revaluation of land
(1,008)
(1,008)
-
Net changes of items other than shareholders' equity
1,571
2,488
(449)
56,437
7,085
67,134
15,643
82,777
Total changes of items during the period
1,571
2,488
(1,457)
56,437
7,085
66,125
15,643
213,400
Balance at the end of current period
5,755
1,473
136,390
108,311
39,982
291,914
32,974
1,951,099
Consolidated Statements of Cash Flows
(Unit: ¥Million)
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Cash flows from operating activities:
Income before income taxes
158,361
222,136
Depreciation and amortization
95,659
95,966
Impairment loss on fixed assets
27,219
18,095
Gain on bargain purchase
-
(8,428)
Amortization of goodwill
9,415
9,015
Gain on step acquisition
-
(8,148)
Increase (decrease) in liability for employees' retirement benefits
(16,249)
(16,456)
Increase (decrease) in reserve for repair work
9,119
4,931
Increase (decrease) in allowance for doubtful accounts
15,229
3,603
Increase (decrease) in provision for losses related to
contracts
10,328
(999)
Interest and dividend income
(22,007)
(22,489)
Interest expense
16,731
18,089
Equity in (earnings) losses of nonconsolidated
subsidiaries and affiliates, net
(22,604)
(2,456)
Loss (gain) on sales of fixed assets, net
(4,200)
(2,914)
Loss (gain) on sale of investment securities
(70)
(2,175)
Loss on valuation of shares of subsidiaries and affiliates
804
0
Gain on reversal of loss on valuation of shares of
subsidiaries and affiliates
(3,239)
-
(Increase) decrease in notes and accounts receivable,
trade
148,469
112,558
(Increase) decrease in inventories
134,470
44,003
(Increase) decrease in accounts receivable, other
14,234
(31,333)
Increase (decrease) in notes and accounts payable, trade
(21,581)
(33,585)
Increase (decrease) in accounts payable, other
(71,868)
(47,610)
Other, net
81,054
58,347
Subtotal
559,275
410,149
Interest and dividends received
29,150
34,677
Interest paid
(17,489)
(18,291)
Income taxes paid
(94,193)
(34,107)
Net cash provided by (used in) operating activities
476,742
392,429
(Unit: ¥Million)
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Cash flows from investing activities:
Purchases of tangible fixed assets
(86,552)
(154,867)
Proceeds from sales of tangible fixed assets
27,148
5,701
Purchases of intangible fixed assets
(8,670)
(11,999)
Acquisitions of investment securities
(29,657)
(16,377)
Proceeds from sales of investment securities
214
5,255
Disbursements for long-term loans
(19,463)
(36,257)
Proceeds from collection of long-term loans receivable
7,316
501
(Increase) decrease in short-term loans receivable, net
9,378
(3,293)
Purchase of shares of subsidiaries resulting in change in
scope of consolidation
(13,603)
(26,282)
(Increase) decrease in time deposits
788
(44,551)
Other, net
(5,411)
(9,461)
Net cash provided by (used in) investing activities
(118,514)
(291,632)
Cash flows from financing activities:
Increase (decrease) in short-term loans payable, net
11,200
(146,690)
Increase (decrease) in commercial paper, net
(59,118)
77,873
Proceeds from long-term loans payable
21,470
121,500
Repayments of long-term loans payable
(93,671)
(93,766)
Proceeds from issuance of bonds
-
10,000
Redemption of bonds
(10,000)
(30,000)
Purchases of treasury stock
(165,320)
(2,309)
Proceeds from disposals of treasury stock
136
0
Cash dividends paid
(46,140)
(44,199)
Proceeds from share issuance to non-controlling
shareholders
7,108
15,907
Cash dividends paid to noncontrolling interests
(895)
(1,980)
Payments from changes in ownership interests in
subsidiaries that do not result in scope of consolidation
-
(6,015)
Other, net
(8,220)
(5,244)
Net cash provided by (used in) financing activities
(343,450)
(104,926)
Effect of exchange rate change on cash and cash equivalents
1,841
7,443
Net increase (decrease) in cash and cash equivalents
16,619
3,313
Cash and cash equivalents at the beginning of period
136,900
164,251
Increase (decrease) in cash and cash equivalents resulting
from change in scope of consolidation
152
2,842
Increase (decrease) in cash and cash equivalents resulting
from change of fiscal year-end of subsidiaries
10,579
(13,318)
Cash and cash equivalents at the end of period
164,251
157,088
Notes on the Consolidated Financial Statements
Notes on Going Concern Assumption None
Notes on Changes in Scope of Consolidation or Scope of Application of the Equity Method (Significant Changes in Scope of Consolidation)
During the fiscal year ended March 31, 2026, the Company included Fuji Oil Company, Ltd., which had been an equity-method affiliate, in the scope of consolidation due to the additional acquisition of the shares of Fuji Oil Company, Ltd.
(Significant Change in Scope of Application of the Equity Method)
During the fiscal year ended March 31, 2026, the Company excluded Fuji Oil Company, Ltd. from the scope of application of the equity method, because the Company acquired the shares of Fuji Oil Company, Ltd. additionally and included in the scope of consolidation.
(Changes in Fiscal Year-end of Consolidated Subsidiaries)
Previously, the financial statements of consolidated subsidiaries with a closing date of December 31 were used as of that date, while necessary adjustments for consolidation have been made for significant transactions that occurred between that date and the consolidated closing date. However, in order to ensure more appropriate disclosure of consolidated financial statements, beginning with the current fiscal year, the Company changed its method of consolidation on the financial statements for some consolidated subsidiaries (46 companies including Idemitsu Apollo Corporation) by changing their closing date to March 31 or by making provisional settlement of accounts as of March 31.
The consolidated subsidiaries' income or loss for the period from January 1, 2025 to March 31, 2025 has been adjusted as an increase in retained earnings of ¥929 million.
Notes on the Consolidated Segment Information Segment Information
Description of reportable segments
The Company's business segments cover the Group's business units for which separate financial information is available on the business units for the whole Group and for which the Company's Board of Directors carries out a periodic review in order to determine the allocation of management resources and to evaluate their operating performance.
Taking into consideration the nature of the products and the business standing within the Group, the Company aggregates these business segments into the following five reportable segments. In addition, other business segments are summarized under Others.
Major businesses in each segment are shown in the following table.
Reportable segment
Major businesses
Petroleum
Production, sales, import/export, trading, etc. of refined petroleum products
Basic chemicals
Production, sales, etc. of olefin/aroma products
Functional materials
Lubricants, performance chemicals, electronic materials, functional paving materials, agricultural biotechnology products business, etc.
Power and renewable energy
Power generation (thermal power, solar power, wind power, etc.), sales of electricity and solar business, etc.
Resources
Exploration, development, production and sales of crude oil, natural gas and other energy resources such as coals
Methods of measurement for the amounts of sales, income, assets and other items for each reportable segment
The accounting method used for reported business segments complies with accounting policy that has been adopted in preparing the consolidated financial statements. The Company accounts for inter-segment sales and transfers as if the sales and transfers were made to third parties.
Information about sales, income, assets and other items by reportable segment
For the fiscal year ended March 31, 2025
(Unit: ¥Million)
Reportable segment
Others (*1)
Total
Reconciliation (*2, 3, 5, 6)
Consolidated (*4)
Petroleum
Basic chemicals
Functional materials
Power and
renewable energy
Resources
Total
Net sales:
Net sales to outside customers
7,696,391
587,195
503,366
127,573
265,246
9,179,772
10,452
9,190,225
-
9,190,225
Inter-segment
23,568
47,805
27,003
3,841
1
102,220
7,911
110,132
(110,132)
-
Total
7,719,959
635,000
530,369
131,415
265,248
9,281,993
18,364
9,300,357
(110,132)
9,190,225
Operating income (loss)
108,368
(9,993)
27,950
(11,336)
68,393
183,381
1,153
184,535
(22,349)
162,185
Equity in earnings (losses) of nonconsolidated
subsidiaries and affiliates
13,747
2,008
284
(936)
8,961
24,065
-
24,065
(1,460)
22,604
Segment income (loss)
122,115
(7,984)
28,234
(12,273)
77,355
207,447
1,153
208,600
(23,810)
184,790
Segment assets
3,184,944
342,125
391,695
237,814
287,556
4,444,136
18,825
4,462,962
312,623
4,775,586
Other items:
Depreciation and amortization
52,380
7,215
10,048
6,279
9,797
85,720
227
85,948
9,711
95,659
Amortization of goodwill
7,266
5
-
2,142
-
9,415
-
9,415
-
9,415
Impairment loss on fixed assets
5,143
1,278
9,421
11,375
-
27,219
-
27,219
-
27,219
Investment in equity method nonconsolidated subsidiaries and
affiliates
100,819
38,561
7,925
14,742
60,468
222,517
-
222,517
20,311
242,829
Unamortized balance of goodwill
91,750
40
2,562
29,995
-
124,348
-
124,348
-
124,348
Increase of property, plant, equipment and intangible fixed assets
41,574
10,747
10,149
13,476
13,473
89,422
302
89,724
21,638
111,362
Notes:
The segment "Others" refers to the total of other business segments that are not included in the reportable segments, including insurance businesses and intra-group service businesses.
The amount of reconciliation for the operating income (loss) mainly represents research and development costs, which do not belong to reportable segments.
The amount of reconciliation for equity in earnings (losses) of nonconsolidated subsidiaries and affiliates and that for investment in equity method nonconsolidated subsidiaries and affiliates mainly represents those related to equity method nonconsolidated subsidiaries and affiliates, which do not belong to reportable segments.
The segment income (loss) of the reportable segments is reconciled to the total of operating income and equity in earnings (losses) of nonconsolidated subsidiaries and affiliates in the consolidated statement of income.
The amount of reconciliation for the segment assets represents elimination among the reportable segments and the amount of Company assets that are not allocated to reportable segments.
The amounts of reconciliation for "Depreciation and amortization" and "Increase of property, plant, equipment and intangible fixed assets" mainly represent depreciation and increases in fixed assets for research and development that do not belong to the reportable segments.
For the fiscal year ended March 31, 2026
(Unit: ¥Million)
Reportable segment
Others (*1)
Total
Reconciliation (*2, 3, 5,
6,7)
Consolidated (*4)
Petroleum
Basic chemicals
Functional materials
Power and
renewable energy
Resources
Total
Net sales:
Net sales to outside customers
6,793,416
491,365
503,156
98,178
203,500
8,089,617
16,273
8,105,891
-
8,105,891
Inter-segment
13,858
9,325
23,728
2,400
-
49,311
7,848
57,160
(57,160)
-
Total
6,807,275
500,691
526,884
100,578
203,500
8,138,929
24,122
8,163,052
(57,160)
8,105,891
Operating income (loss)
175,049
(7,310)
34,780
(1,907)
29,170
229,782
922
230,705
(18,501)
212,203
Equity in earnings (losses) of nonconsolidated
subsidiaries and Affiliates
2,629
463
(1,335)
96
3,935
5,790
-
5,790
(3,333)
2,456
Segment income (loss)
177,678
(6,847)
33,445
(1,810)
33,106
235,572
922
236,495
(21,834)
214,660
Segment assets
3,649,172
349,541
385,246
253,619
318,015
4,955,595
72,365
5,027,961
300,831
5,328,792
Other items:
Depreciation and amortization
53,788
6,902
10,120
5,097
9,824
85,733
230
85,963
10,002
95,966
Amortization of goodwill
6,867
5
-
2,142
-
9,015
-
9,015
-
9,015
Impairment loss on fixed assets
3,692
871
3,324
9,791
204
17,884
-
17,884
210
18,095
Investment in equity method nonconsolidated
subsidiaries and affiliates
125,174
37,224
7,956
11,609
66,024
247,990
-
247,990
18,567
266,557
Unamortized balance of goodwill
85,054
34
9,978
27,852
6,856
129,776
-
129,776
-
129,776
Increase of property, plant, equipment and
intangible fixed assets
58,465
11,923
8,084
33,872
15,385
127,730
658
128,388
37,294
165,683
Notes:
The segment "Others" refers to the total of other business segments that are not included in the reportable segments, including insurance businesses and intra-group service businesses.
The amount of reconciliation for the operating income (loss) mainly represents research and development costs, which do not belong to reportable segments.
The amount of reconciliation for equity in earnings (losses) of nonconsolidated subsidiaries and affiliates and that for investment in equity method nonconsolidated subsidiaries and affiliates mainly represents those related to equity method nonconsolidated subsidiaries and affiliates, which do not belong to reportable segments.
The segment income (loss) of the reportable segments is reconciled to the total of operating income and equity in earnings (losses) of nonconsolidated subsidiaries and affiliates in the consolidated statement of income.
The amount of reconciliation for the segment assets represents elimination among the reportable segments and the amount of Company assets that are not allocated to reportable segments.
The amounts of reconciliation for "Depreciation and amortization" and "Increase of property, plant, equipment and intangible fixed assets" mainly represent depreciation and increases in fixed assets for research and development that do not belong to the reportable segments.
The amounts of reconciliation for "Impairment loss on fixed assets" represents the amount of corporate assets that are not allocated to reportable segments.
Related Information
For the fiscal year ended March 31, 2025
Information about each product and service
Since "Segment Information" includes similar information, descriptions have been omitted.
Geographic segment information
Sales
(Unit: ¥Million)
Japan
Asia and Oceania
North America
Other regions
Total
6,552,146
1,704,383
842,172
91,522
9,190,225
(Notes)
Asia and Oceania
: Singapore, Australia, China, Hong Kong, South Korea, etc.
North America
: USA and Canada
Other regions
: Germany, etc.
Areas are segmented based on their geographical proximity.
The principal areas included in each region are as follows:
Property, plant and equipment
(Unit: ¥Million)
Japan
Asia and Oceania
North America
Other regions
Total
1,149,364
105,396
119,108
154
1,374,024
(Notes)
Asia and Oceania
: Australia, China, Indonesia, Malaysia, etc.
North America
: USA
Others
: Germany, etc.
Areas are segmented based on their geographical proximity.
The principal areas included in each region are as follows:
Principal customer information
Among net sales to outside customers, no customer accounted for 10% or more of net sales in the consolidated statements of income, therefore, descriptions have been omitted.
For the fiscal year ended March 31, 2026
Information about each product and service
Since "Segment Information" includes similar information, descriptions have been omitted.
Geographic segment information
Sales
(Unit: ¥Million)
Japan
Singapore
Asia and Oceania
North America
Other regions
Total
5,557,247
827,000
896,614
711,667
113,361
8,105,891
(Notes)
Asia and Oceania
: Australia, China, Hong Kong, South Korea, etc.
North America
: USA and Canada
Other regions
: Germany, etc.
Areas are segmented based on their geographical proximity.
The principal areas included in each region are as follows:
Property, plant and equipment
(Unit: ¥Million)
Japan
Asia and Oceania
North America
Other regions
Total
1,254,645
130,865
137,894
107
1,523,513
(Notes)
Asia and Oceania
: Australia, China, Indonesia, Malaysia, Thailand, etc.
North America
: USA
Others
: Germany, etc.
Areas are segmented based on their geographical proximity.
The principal areas included in each region are as follows:
Principal customer information
Among the net sales to outside customers, no customer accounted for 10% or more of net sales in the consolidated statements of income, therefore, descriptions have been omitted.
Information Regarding Impairment Loss on Fixed Assets by Reportable Segment For the fiscal year ended March 31, 2025
The Company recorded impairment losses of ¥5,143 million on domestic plant piping facilities, etc. in the petroleum segment, ¥1,278 million on overseas plant facilities, etc. in the basic chemicals segment, ¥9,421 million on overseas lubricants plant facilities and functional chemicals facilities in the functional materials segment, and ¥11,375 million on biomass-related facilities, etc. in the power and renewable energy segment.
For the fiscal year ended March 31, 2026
The Company recorded impairment losses of ¥3,692 million on domestic plant piping facilities, etc. in the petroleum segment, ¥3,324 million on overseas functional chemical facilities, etc. in the functional materials segment, and ¥9,791 million on biomass-related facilities, etc. in the power and renewable energy segment.
Information Regarding Amortization and Unamortized Balances of Goodwill by Reportable Segment
For the fiscal year ended March 31, 2025
Since "Segment Information" includes similar information, descriptions have been omitted.
For the fiscal year ended March 31, 2026
Since "Segment Information" includes similar information, descriptions have been omitted.
Information Regarding Negative Goodwill Gain by Reportable Segment For the fiscal year ended March 31, 2025
No negative goodwill was recognized during the period.
For the fiscal year ended March 31, 2026
In the petroleum segment, the Company recognized a gain on bargain purchase as a results of the acquisition of shares in Fuji Oil Co.,Ltd. and making it a consolidated subsidiary. The amount of the gain on bargain purchase recorded in connection with this event was
¥492 million.
In the resources segment, the Company recognized a gain on bargain purchase due to the acquisition of an additional interest in the Boggabri coal mine in Australia by Idemitsu Australia PTY LTD, our consolidated subsidiary. The amount of the gain on bargain
purchase recorded in connection with this event was ¥7,936 million.
Note that these gains on bargain purchase are included in extraordinary income and are therefore not included in segment income (loss) above.
Per Share Information
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Net assets per share
¥1,404.80
¥1,574.46
Net income per share
¥77.83
¥140.38
(*) 1. Diluted net income per share for the fiscal year is not presented, as there were no dilutive shares in the previous consolidated fiscal year and no dilutive shares with dilutive effect in current consolidated fiscal year.
In calculating net assets per share, the shares held by The Master Trust Bank of Japan, Ltd. as the trust property for the Company's stock compensation plan (3,124 thousand treasury shares for the current fiscal year and 3,124 thousand treasury shares for the previous fiscal year) are included in the number of treasury stock that is to be deducted from the number of the Company's issued shares at the end of the respective fiscal years. Also, in calculating net income per share, the shares held by The Master Trust Bank of Japan, Ltd. as the trust property for the Company's stock compensation plan (3,124 thousand treasury shares for the current fiscal year and 3,124 thousand treasury shares for the previous fiscal year) are included in the number of treasury stock that is to be deducted from the average number of the Company's issued shares during the respective fiscal years.
The basis for calculating net income per share is as follows:
Fiscal year ended March 31, 2025 | Fiscal year ended March 31, 2026 | |
Net income attributable to owners of the parent (¥million) | 104,055 | 171,914 |
Amount not attributable to common stock (¥million) | - | - |
Net income attributable to common stock (¥million) | 104,055 | 171,914 |
Weighted-average common shares outstanding during the period (thousands of shares) | 1,336,912 | 1,224,619 |
Overview of dilutive shares not included in the calculation of diluted net income per share without dilutive effect. | - | The First Share Acquisition Right (one unit), issued as a means of adjusting the number of shares to be acquired in the accelerated share repurchase, expired on March 16, 2026 due to the expiration of the exercise period. |
Notes on the Business Combination (Business combination through acquisition)
On November 5, 2025, the Company acquired 40,915,958 shares of common stock of Fuji Oil Co.,Ltd., which was the Company's an equity-method affiliate, through a tender offer. As a result, our ratio of voting rights to Fuji Oil Co.,Ltd. reached 75.03% and Fuji Oil Co., Ltd. became a consolidated subsidiary as of the same day.
Subsequently, the Company acquired additional shares of Fuji Oil Co.,Ltd. on February 27 and March 6, 2026 and the ratio of voting rights at the end of the consolidated fiscal year under review was 92.49%.
Outline of the business combination
Name and business description of the acquiree Name of the acquiree: Fuji Oil Company.,Ltd.
Business description: Import of crude oil, refinement of petroleum, manufacture and sales of petrochemical products
Primary reasons for the business combination
The Idemitsu Group and the Fuji Oil Group believe that, by engaging in business activities under the same business enterprise and the same management strategy after privatizing Fuji Oil, both companies will be able to realize a more in-depth collaboration system, make decision-making more flexible and expedited, and compared to the case where the Fuji Oil is made an equity-method affiliate, further develop their fuel oil businesses, through pursuing further synergies as described below.
Optimizing petroleum products production system
Developing a stable energy supply foundation with a long-term perspective
Strengthening cost competitiveness by mutual utilization and centralization of functions and infrastructure of both companies
Developing a low-carbon energy supply system
Date of the business combination November 5, 2025
Legal form of the business combination Purchase of shares for cash
Company name after the business combination There is no change.
Percentage of voting equity interests acquired
Voting rights held immediately before the business combination: 22.06% Voting rights after the tender offer: 75.03%
Voting rights after the additional acquisition of shares: 92.49%
The company treated these series of share acquisitions as a single transaction.
Primary rationale for determining the acquirer
The Company acquired shares in exchange for cash.
Period of the acquiree's performance included in the consolidated financial statements From November 5, 2025 to December 31, 2025
As Fuji Oil Company.,Ltd. had been an equity method affiliate of the Company, the portion of Fuji Oil Company.,Ltd.'s operating results attributable to the Company for the period from April 1, 2025 to November 4, 2025 has been recorded as equity in earnings (losses) of nonconsolidated subsidiaries and affiliates.
Acquisition cost of the acquiree and breakdown by type of consideration
(Unit: ¥Million)
Consideration transferred:
Fair value at the acquisition date of the equity
interests held immediately before the business combination
8,177
Cash consideration for the additional acquisition of shares
26,185
Acquisition cost
34,362
Major acquisition related costs and amounts Advisory fees and others ¥698 million
Difference between the acquisition cost of the acquiree and the aggregate acquisition costs for the transactions leading to the acquisition
Gains on step acquisition ¥1,157 million
Amount of gain on bargain purchase and reason for its recognition
Amount of gain on bargain purchase
¥492 million
While provisional accounting was applied in the third quarter of the current fiscal year, the allocation of acquisition costs was finalized as of the end of the fiscal year.
Reason for the recognition of gain on bargain purchase
As the fair value of the net assets as of the business combination date exceeded the acquisition cost, the difference has been recognized as gain on bargain purchase.
Amounts and major components of assets acquired and liabilities assumed as of the business combination date
Current assets ¥243,649 million
Fixed assets ¥105,445 million
Total assets ¥349,095 million Current liabilities ¥282,206 million Long-term liabilities ¥29,211 million Total liabilities ¥311,417 million