HSSE (Health, Safety, Security andEnvironment) Philosophy and Environmental
PolicyFebruary 7, 2019

TOA Oil Co., Ltd. | Confidential

About TOA Oil Co., Ltd.
TOA Oil is an energy company that operates oil
refinery and electric power generation facilities in
the coastal region of Kawasaki City.

Oil Refinery
Our refinery facilities boast high-efficiency oil
separation and refinement equipment, which enable
us to process some of Japan's heaviest crude andstock oils and produce uniquely high-value-added
petroleum products.
Power Plant
We utilize byproduct gases, residual oils and othersuch products from refining processes to produce
electric power for use in the Tokyo capital region,
which is a major electric power consumer.

Foundation: 1924
Headquarters and Plant Location: Kawasaki City,
Kanagawa Prefecture
Number of Employees: 520

Crude Oil

Oil Refinery

Power Plant

Petroleum
Products

Electric Power

4.78 million kl/year
TOA Oil Co., Ltd. | Confidential

10.24 million kWh/year
February 7, 20192

Production Facilities
Both our corporate headquarters and refinery are in Kawasaki City, and we carry out production and shipping
operations in four locations within Kawasaki Ward's Mizue-cho, Higashi-ogishima and Ogishima districts.
Mizue District: Plant
Nos. 1 and 2
Refinery and PowerPlant
299,663 m2 / 3.23
million sq. ft.

Kawasaki Stn.

Mizue District: Plant
No. 3
Storage andIncoming/Outgoing
Shipment Handling
102,628 m2 / 1.10
million sq. ft.

Higashi-ogishima
District
Storage andIncoming/Outgoing
Shipment Handling
300,634 m2 / 3.24
million sq. ft.

Ogishima District
Storage andIncoming/Outgoing
Shipment Handling
154,636 m2 / 1.66
million sq. ft.

4 km / 2.5 mi.

Keihin Kawasaki Sea
BerthPetroleum Receiving
Facilities© 2019 ZENRIN｜GoogleTOA Oil Co., Ltd. | Confidential

Total Area: 857,561 m2/ 9.23 million sq. ft.
February 7, 20193

Our HSSE Philosophy
 In order to achieve sustainable company operations, we strive to realize all aspects ofthe HSSE philosophy—health, safety, security and environment—which we consider tobe an integral part of our corporate social responsibility.
 By positioning HSSE as the foundation of our management activities, including it as thefirst of our management principles, and utilizing our corporate management system in all
activities, we are able to earn the trust of customers and achieve sustainable growth asa company.

TOA Oil Co., Ltd. | Confidential

HealthSafetySecurity

Environment
Today we will be taking a lookat environmental preservation
measures.
February 7, 20194

Pollution in Kawasaki and TOA Oil's Environmental Policy

The Keihin (Tokyo–Yokohama) industrial region, with Kawasaki at its
center, played a major role in achieving high-speed economic growth inpostwar, 20th-century Japan. However, this came at the price ofwidespread and harmful pollution.
In 1955, TOA Oil established its first refinery in Kawasaki and began
refining operations. We expanded our facilities as Japan's economy
grew, and even though we were guilty of being one of the Keihin area'spolluters, we became aware of the problem and made it a top priority toadhere to government-imposed pollution regulations. Based on this wayof thinking, we developed a unique environmental management system
and utilized it in our environmental protection measures.
In light of these developments, we established the following
Environmental Policy based on the HSSE principles.

Environmental Policy

1955: TOA Oil's first refinery (6,000 barrels/day)(1) Obey environmental law and adhere to other regulations and requirements in all
corporate activities(2) Pursue continual improvements to our environmental management system and utilize
creative ideas and technological innovations to prevent pollution of the regional andglobal environments and reduce our environmental load(3) Strive to achieve greater resource and energy savings while pursuing more reliable
provision of trustworthy products in an efficient, safe and environmentally friendly manner(4) Ensure that all company personnel understand this policy from the outset, and personallyfully comprehend the importance of environmental preservation and proactively takeaction
TOA Oil Co., Ltd. | Confidential

February 7, 20195

Continual Reductions to Environmental Load (EnvironmentalAccounting) Based on the core concepts of continual improvement, creative ideas and technologicalinnovation, we strive to achieve continual reductions in our company's environmental load.
Category

Environmental
preservation

Activities

Investment Amounts
and ExpensesPollution prevention

420

Global-scale environmental preservation

30

Resource recycling

90

Environmental loadreduction

Reduction of benzene amounts in products
Reduction of sulfur amounts in productsManagement efforts

Environmental management system
Green space creation

40

Social efforts

Port facility improvements

2

Environmental
damageInsurance
Installation of preventive
equipment/facilities

20

Total

10,40011,002
Above figure are 2017 results
Unit: millions of yen
Created based on MOE's Environmental Accounting Guidelines 2005

TOA Oil Co., Ltd. | ConfidentialFebruary 7, 20196Reductions in Environmentally Hazardous SubstancesElectric Power

10.24
millionkWh/year

Crude Oil,
Stock Oil

Production
Facilities
IPP Power GenerationBusinessElectric PowerTEPCO Energy Partner,
Inc.

Steam,
ElectricPowerElectricity Provided (Max.):

Fuel

Air Pollution Prevent
Measures

CO2SOx (Sulfur Oxides)

1,853,000 t/year
SOx● Use of clean fuel gas with sulfur
content removed● Removal of SOx from flue gases
via desulfurization equipment

4.78

NOx (Nitrogen Oxides)

millionkl/year● Use of low-NOx burners● Use of two-stage combustion● Removal of NOx from flue gases
via denitrification equipment

Industrial-useWater

8.54
milliont/year

Oil Refining BusinessHydrocarbon
Recovery Equipment(Shipping Yard)

Petroleum Products

Showa Shell Seikyu K.K.
service stations, etc.

Waste
RecyclingandReductions

Flue Gases, Wastewater

Particulate Matter● Use of clean fuel gas with sulfur
content removed● Thorough combustion-operation
management● Reduction via electrostatic
precipitators

Water Pollution
Prevention Measures
Installation of various water treatment
equipment for wastewater fromprocesses requiring treatment, andconfirming that regulatory values are met
before releasing water into the seaRegulatory
Limits for All ofKawasaki City

120 t/year

876 t/year

404 t/year

1,218 t/year

NOx
Particulate Matter

8.4 t/year

194 t/yCOD
155 kg/day
Nitrogen

261 kg/day

126 kg/day
Phosphorus

272 kg/day

3.4 kg/day
Standard Waste

40 t/year
Industrial Waste

0 t/yearIn addition to adhering to official regulatory limits, we have always established ambitious targets for environmental
assessments and reduced amounts of hazardous substances to the greatest degree possible through our management
system. The above figures, which we make available to the public, are the results of these efforts.
Despite being a petroleum company, we do not approve of commuting to work by car for employees at TOA Oil andpartner companies, and we even attempt to reduce pollution through activities not directly connected to production
operations.

TOA Oil Co., Ltd. | ConfidentialFebruary 7, 20197

New Measure: Participation in the Hydrogen Supply Chain
Proof-of-concept Project
TOA Oil is participating in the New Energy and Industrial Technology Development Organization(NEDO) "Hydrogen Supply Chain Proof-of-concept Project for Unutilized Hydrogen Fuel via theOrganic Chemical Hydride Method." This concept-demonstration project is being carried out by theAdvanced Hydrogen Energy Chain Association for Technology Development (AHEAD), which wasfounded by Chiyoda Corporation, Mitsubishi Corporation, Mitsui & Co., Ltd. and Nippon Yusen
K.K. (NYK Line).

HydrogenHydrogen
Methylcyclohexane

Used for electric
発電に利用
power generation

Plant operation support
Utility provision
Provision of plant installation
location (District F)
Dehydrogenation

Hydrogenation
Toluene

TOA Oil's part in projectThrough this NEDO proof-of-concept project, hydrogen is taken from gases generated by processes at a natural gas
liquefaction plant in Brunei, then transported by sea to Japan and utilized to cover a portion of the fuel required forelectric power generation.
Prior to marine transport, toluene is added to the hydrogen to form methylcyclohexane. In this form, the hydrogen isreduce to 1/500 the normal volume and can be safely transported by ship at standard temperatures and pressures.
In Japan, the toluene and hydrogen is separated out from the methylcyclohexane at a dehydrogenation plant(currently being built) within TOA Oil's facilities, after which the hydrogen is used for power generation and thetoluene is shipped back to Brunei.
The hydrogen separated out at the TOA Oil dehydrogenation plant is used to cover a portion of the fuel needed forpower generation operations. The resulting electric power, generated using hydrogen imported from overseas, is thensupplied to the Tokyo capital region for one year's time.

TOA Oil Co., Ltd. | ConfidentialFebruary 7, 20198

In Closing: Operational and Environmental Measures at TOA
Oil Refinery and Power Plant Facilities
We have begun construction of the dehydrogenation plant to be used in the Hydrogen Supply Chain Proof-ofconcept Project.
In 2020, we will use the hydrogen supplied by the dehydrogenation plant to cover part of the fuel required forelectric power generation operations.
This is the first system in the world to generate power using hydrogen imported from abroad, and we will utilize thesystem to supply the Tokyo capital region with electric power for one year's time.
If you have a chance, please stop by and take a tour of our plant!

Simulated image of completed project plant

Here at TOA Oil, we are serious about reducing our environmental load.
Moving forward, we intend to make full use of all available technological innovations along withcreative ideas to continually reduce our company's environmental load to the greatest extent
possible, while providing society with the energy it needs in the forms of oil and electric power.
TOA Oil Co., Ltd. | Confidential

February 7, 20199Thank you for your time!