This document is an English translation of quarterly financial results report released on July 31, 2018 and written initially inJapanese.
The Japanese original should be considered as the primary version.

July 31, 2018

Consolidated Financial Results for the First Three Months of
the Fiscal Year Ending March 31, 2019
<under IFRSs>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Itochu Enex Co., Ltd.
Tokyo Stock Exchange, 1st Section
8133
https://www.itcenex.com/english/
Kenji Okada, Representative Director, President and CEO
Keisuke Hioki, General Manager, Finance & General Accounting Department
Tel: +81-3-6327-8010

Scheduled date to file quarterly securities report: August 10, 2018
Scheduled date to commence dividend payments: –Preparation of supplementary results briefing material on quarterly financial results: None
Holding of quarterly financial results presentation meeting: None
(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated financial results for the first three months of the fiscal year ending March 31, 2019(from April 1, 2018 to June 30, 2018)(1) Consolidated operating results(Percentages indicate year-on-year changes.)Three months ended
June 30, 2018
June 30, 2017

Total tradingtransactions

Profit fromoperatingactivities

Millionsof yenMillionsof yen%Millionsof yen%%Net profit

Millionsof yen%Comprehensive
incomeMillionsof yenMillionsof yen%%288,762

17.7

3,938

(15.6)

4,494

(2.1)

3,209

5.0

2,544

0.8

3,225

(0.6)

245,395

10.5

4,664

100.4

4,591

97.6

3,057

115.2

2,523

134.3

3,244

589.2

Basic earnings per
share attributable
to Itochu Enex’s
shareholders
Three months ended
June 30, 2018
June 30, 2017

Profit before tax

Net profit
attributable to
Itochu Enex’s
shareholders

Diluted earnings
per share
attributable to
Itochu Enex’s
shareholders

Yen

22.54
22.33

Yen

–
–

Note: “Total trading transactions” are presented in accordance with the Japanese accounting practices.

(2) Consolidated financial position
Total assets

As ofJune 30, 2018
March 31, 2018

Total shareholders’equityTotal equity

Millions of yen

Millions of yen

364,197
382,621

Ratio of shareholders’equity to total assets

Millions of yen

137,123
137,066%

115,956
116,104

31.8
30.3

2. Cash dividends
Annual cash dividends per share
Second quarterend

First quarter-end
Fiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

–

16.00

–

24.00

40.00

20.00

–

20.00

40.00

–

Fiscal year ending
March 31, 2019
(Forecast)

Note: Revisions to the forecasts of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2019(from April 1, 2018 to March 31, 2019)

Total tradingtransactions
Millions of yen

Six months ending
September 30, 2018
Fiscal year ending
March 31, 2019–
1,250,000

Profit from operating
activities% Millions of yen

–
8.1

–
18,700(Percentages indicate year-on-year changes.)
Basic earnings
Net profit
per share
Profit before tax attributable to Itochu attributable toEnex’s shareholders Itochu Enex’s
shareholders% Millions of yen

–
9.0

–
18,500% Millions of yen

–
(3.5)

–
11,300

%

Yen

–

–

2.5

100.11

Note: Revisions to the consolidated earnings forecasts most recently announced: None
The Company’s performance is evaluated on a fiscal year basis. Accordingly, consolidated earnings forecasts for the
first six months of fiscal year are not prepared.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimatesa. Changes in accounting policies required by IFRSs:
Yes
b. Changes in accounting policies other than the above:Nonec. Changes in accounting estimates:
None(Note) For details, please refer to “2. Condensed Quarterly Consolidated Financial Statements andSignificant Notes Thereto, (6) Changes in accounting policies” on page 13 of the attachedmaterials.
(3) Number of issued shares (common stock)a. Total number of issued shares at end of period (including treasury stock)
As of June 30, 2018

116,881,106 shares

As of March 31, 2018

116,881,106 sharesb. Number of treasury stock at end of period
As of June 30, 2018

4,002,135 shares

As of March 31, 2018

4,002,135 sharesc. Average number of outstanding shares during period (cumulative from the beginning of the fiscal year)
For the three months ended June 30, 2018

112,878,971 shares

For the three months ended June 30, 2017112,988,683 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special notes(Caution regarding forward-looking statements and others)
The forecasts and other forward-looking statements in this report are based on information currently
available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual
business and other results may significantly differ from these forecasts due to various factors.
Please refer to ―1. Qualitative Information Regarding Results for the First Three Months, (3) Explanationof Consolidated Earnings Forecasts and Other Forward-Looking Statements on page 5 of the attachedmaterials for the suppositions that form the assumptions for earnings forecasts and cautions concerning theuse thereof.

Contents of Attached Materials
1. Qualitative Information Regarding Results for the First Three Months ............................................... 2(1) Explanation of Operating Results ....................................................................................................... 2(2) Explanation of Financial Position ....................................................................................................... 5(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements......... 5
2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto .................. 6(1) Condensed Quarterly Consolidated Statement of Financial Position .............................................. 6(2) Condensed Quarterly Consolidated Statement of Comprehensive Income..................................... 8(3) Condensed Quarterly Consolidated Statement of Changes in Equity ........................................... 10(4) Condensed Quarterly Consolidated Statement of Cash Flows ....................................................... 11(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern .................................... 13(6) Changes in accounting policies .......................................................................................................... 13(7) Segment Information .......................................................................................................................... 14

-1-

1.

Qualitative Information Regarding Results for the First Three Months(1) Explanation of Operating Results
1)

Results of operations
During the three months ended June 30, 2018, Japan’s economy maintained a moderate recovery trend
as seen in a pickup in consumer spending with continued improvement in the employment and income
environments. On the other hand, the outlook for the economy remained uncertain due to factors suchas geopolitical risks, and risks of a slowdown in the global economy stemming from economic trends
in China and other emerging countries in Asia, etc., interest-rate increases in the US, and other factors.
In this environment, the Itochu Enex Group announced its two-year medium-term business plan
“Moving 2018 Connecting to the future” in April 2017, and has been advancing its business based on
the following basic policies:<1> “Connecting to future growth” — Reforming the revenue base —(1) Optimizing resources(2) Improving profitability(3) Developing the customer base<2> “Connecting people and functions of the Group” — Reforming the organizational base —(1) Reinforcing organizational strength(2) Nurturing autonomous human resources(3) Promoting ENEX EARLY BIRD, a Plan to Transform Our Approach to WorkAs part of those initiatives, we reorganized the Group’s business divisions and business groups in April
2018, to develop businesses that are utilizing region-specific networks of the Group and to accelerate
the decision-making process in the electric power and mobility business in response to changes inenergy shift.
In the Group’s business divisions, the Life & Industrial Energy Division was newly established byintegrating the now former divisions Life Energy & Logistics Division and Industrial Energy &Logistics Division.
In the business groups, the Group has organized two business groups, namely the Energy & Logistics
Group, which consists of the Home-Life Division and Life & Industrial Energy Division, and thePower & Utility Group. In addition, the Group newly set up the Mobility Life Department.
As a result of these activities, the operating results for the three months ended June 30, 2018 are as
follows.
Revenue was ¥226,301 million (up 31.2% year on year), due mainly to the impact on price resulting
from the increase in prices of domestic petroleum products.
Profit from operating activities was ¥3,938 million (down 15.6% year on year), due mainly to thedecrease in gross profit in the electricity sales field and the petroleum product trading field.
Net profit attributable to Itochu Enex’s shareholders was ¥2,544 million (up 0.8% year on year), due
mainly to an increase in earnings of associates accounted for by the equity method in the Home-Life
Business and the Power & Utility Business.

-2-

2)

Results of operations by segment<Energy & Logistics Group>
Home-Life Division
In the Home-Life Division during the three months ended June 30, 2018, the number of customers
under direct LP gas supply contracts increased by around 3,000 to approximately 550,000.
Regarding sales of electricity for households, the division promoted the expansion of the customer baseby focusing mainly on sales of combined LP gas and electricity supply packages. As a result, thenumber of supply contracts increased by around 10,000 for a total of approximately 64,000.
With regard to profitability, although profit from operating activities decreased from the corresponding
period of the previous fiscal year, net profit attributable to Itochu Enex’s shareholders increased year
on year due to the transition of three subsidiaries in the Tokyo, Nagoya and Osaka areas to associates
accounted for by the equity method in conjunction with the reorganization and integration with the
Osaka Gas Group in October 2017.
In overseas businesses, we are continuing to use the know-how developed in Japan at our industrial gas
sales business in Indonesia (PT. ITC ENEX INDONESIA) and at our LP gas sales business in thePhilippines (Isla Petroleum & Gas Corporation) and going forward, we will continue to expand thesebusinesses.
As a result of these activities, revenue was ¥22,112 million (down 2.2% year on year), profit fromoperating activities was ¥775 million (up 1.8% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥545 million (up 42.9% year on year).
Life & Industrial Energy Division
In the Life & Industrial Energy Division during the three months ended June 30, 2018, while theindustry reorganization was advanced as seen in bipolarization of wholesalers in the wake of astructural downturn in demand for oil, the Group refurbished its organizational structure by integrating
the Life Energy & Logistics Division and the Industrial Energy & Logistics Division to form the Life &Industrial Energy Division in order to have commitment in lives in communities and local industries.
In the retail-related business, which engages with people in communities, we have promoted theapplication of IT and enhanced the convenience of customers by introducing our new POS system at
the Group’s Car-Life Stations (CS)*1 using a shared loyalty points system. In addition, ENEXAUTOCO., LTD., a subsidiary, has endeavored to improve the convenience of services for both users andmember establishments by operating Carlife Stadium car rentals to expand the functions of car rental
network and conduct web-based promotions and customer transfers from other companies. In the threemonths ended June 30, 2018, the number of dealerships that have introduced the system was 391. The
total number of the Group’s CS in the three months ended June 30, 2018 was 1,786 (net decrease of 26
from the end of the previous fiscal period) due largely to withdrawal of unprofitable CS.
In the business related to local industries, we have comprehensively proposed AdBlue*2, business user
electricity supply business, and other diverse products and services in addition to existing businesses.
Furthermore, in the marine fuel sales business, following the introduction of a lubricant oil supply shipin the Setouchi area in the fiscal year ended March 31, 2018, we also started operation of one supply
ship in Tokyo Bay area as part of the advancement of supply chains through appropriate expansion andmanagement of assets.
As for efforts for the environmental-related business, ENEX FLEET CO., LTD., a subsidiary, hasparticipated in the project of the Ministry of the Environment for commercial driving tests of large
LNG truck and worked on the setup and operation of LNG and CNG supply stations for users of large
trucks. Moreover, a recovery vessel was newly put in place in Tokyo Bay in the slop and oil recycling
business, which recycles and sells waste oil recovered from ships, and the fly ash business, which
recycles and sells coal ash discharged from the Itochu Enex Group’s thermal power plants, has also
been building a track record steadily.
As a result of these activities, revenue was ¥159,106 million (up 44.7% year on year), profit fromoperating activities was ¥1,084 million (down 23.6% year on year), and net profit attributable to Itochu-3-Enex’s shareholders was ¥772 million (down 21.2% year on year).
*1 Car-Life Stations: Car-Life Stations are service stations offering multiple services provided by the Company.
*2 AdBlue is a high-grade urea solution used in SCR systems, which detoxifies nitrogen compounds (NOx) containedin exhaust gases of diesel vehicles.

<Power & Utility Group>
Power & Utility Division
In the Power & Utility Division during the three months ended June 30, 2018, although the sales
volume of retail electricity in the electricity sales field of the electric power business increased from thecorresponding period of the previous fiscal year, reflecting growth in electricity sales for business users
and households, profit decreased year on year due to volatility of the wholesale trading market. In thisfield, ENEX LIFE SERVICE CO., LTD., a subsidiary, will lead efforts to form alliances withcompanies that have strong customer bases in local areas and companies in other sectors, in order tofurther promote investigations of new value proposals for households and small companies.
In the power generation field, total power generation increased year on year, due to the start ofoperations at a new thermal power plant in October 2017. Profit also increased year on year. In thisfiled, we aim to ensure stable electricity supplies and reduce environmental impacts by enhancing ourportfolio of power sources and investing in renewable energy power generation facilities.
In the heat supply business*3, both demand for heat and profit increased year on year due to an increasein average temperatures during the fiscal period. In addition, the division will continue to develop acomprehensive energy services business including the heat supply business to satisfy the increasingly
diverse needs of customers. Initiatives include the establishment of The Reliance Energy Okinawa,
Incorporated in December 2017 as a joint venture of The Okinawa Electric Power Company,
Incorporated, OSAKA GAS, and Tokyo Toshi Service CO., LTD. to start efforts for the energy
services business*4 in the Okinawa area.
As a result of these activities, revenue was ¥17,807 million (up 26.7% year on year), profit fromoperating activities was ¥1,459 million (down 23.8% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥831 million (down 10.7% year on year).
*3 Heat supply business: The heat supply business supplies cold and hot water for air conditioning to multiple officebuildings and other buildings from a heat source plant using pipes.
*4 Energy services business: The energy services business owns electric and heat source facilities, etc. and supplies
cold and hot air-conditioning water, hot water for hot-water supply, steam and others on behalf of customers in theuse of energy.

<Mobility Life Department>
In the Mobility Life Department during the three months ended June 30, 2018, the car dealer businessand the biodiesel production business in the US were brisk.
In the Car Dealer Business during the three months ended June 30, 2018, OSAKA CAR LIFE GROUP
CO., LTD., a subsidiary, enjoyed strong unit sales of new cars, particularly those equipped withadvanced technologies such as Note and Serena of Nissan Motor Co., Ltd. Furthermore, in “Nissan
Osaka Sales e-Denki,” of which sales were started in 2017, combined sales with Leaf and MAINTEPRO PACK*5 were healthy, leading to strengthening of the customer base.
In the biodiesel production business in the US, the local plant improved operations of the pretreatment
process for raw materials, resulting in an improvement in the operating rate and a record-highproduction volume. Consequently, profit also improved.
As a result of these activities, revenue was ¥27,276 million (up 5.6% year on year), profit fromoperating activities was ¥326 million (up 13.1% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥147 million (up 226.4% year on year).
*5 MAINTE-PRO PACK: MAINTE-PRO PACK is a product packaging different combinations of oil service, periodic
checkup, safety inspection and other services for a maximum of five years.

-4-(2) Explanation of Financial Position
Assets, liabilities and equity
Total assets amounted to ¥364,197 million as of June 30, 2018, a decrease of ¥18,424 million from March
31, 2018. This decrease mainly reflected a decrease in trade receivables of ¥10,576 million due toseasonal factors. Total liabilities amounted to ¥227,074 million, a decrease of ¥18,481 million from March
31, 2018, mainly due to a decrease of trade payables of ¥11,351 million by seasonal factors. Total equity
totaled ¥137,123 million, an increase of ¥57 million from March 31, 2018, due to factors including an
increase of ¥2,544 million from net profit attributable to Itochu Enex’s shareholders and a decrease of¥3,171 million by payment of cash dividends, and the like.
Cash flows
Cash and cash equivalents (net cash) totaled ¥21,084 million as of June 30, 2018, down ¥1,489 million
from March 31, 2018.
Cash flows from operating activities
Operating activities provided net cash of ¥3,147 million. Major items included profit before tax of ¥4,494
million, depreciation and amortization of ¥2,484 million, a decrease of trade payables of ¥11,351 million
and income taxes paid of ¥3,629 million. Net cash provided increased ¥5,018 million year on year.
Cash flows from investing activities
Investing activities provided net cash of ¥1,554 million. Major items included payments for purchase ofproperty, plant and equipment and investment property, etc. of ¥3,103 million, mainly in Power & Utility
Division, and a decrease in deposits paid of ¥5,000 million. Net cash provided increased ¥5,021 million
year on year.
Cash flows from financing activities
Financing activities used net cash of ¥6,188 million. Major items included expenditures due to a decrease
in interest-bearing debt of ¥3,017 million and expenses as payment of cash dividends of ¥3,171 million.
Net cash used increased ¥4,244 million year on year.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
Although operating performance could be affected by various factors, including crude oil prices, market
conditions, changes in the weather, and the Japanese government’s energy policy, we have not revised ourfull-year consolidated earnings forecasts announced on April 27, 2018.

-5-

2.

Condensed Quarterly Consolidated Financial Statements and Significant Notes
Thereto(1) Condensed Quarterly Consolidated Statement of Financial Position
As ofMarch 31, 2018ASSETS
Current assets
Cash and cash equivalents
Trade receivables
Other current financial assets
Inventories
Trade advances paid
Other current assets
Total current assets
Non-current assets
Investments accounted for by the equity method
Other investments
Non-current financial assets other than investments
Property, plant and equipment
Investment property
Goodwill
Intangible assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets-6-(Millions of yen)
As ofJune 30, 2018

22,573
119,541
38,86028,3801,690
1,725

21,084
108,965
36,61725,249226
2,246

212,769

194,387

26,145
3,406
11,40085,326
10,166692
20,79810,502
1,417

26,7783,550
11,51985,126
9,951
692
20,68010,0191,495

169,852

169,810382,621364,197

As ofMarch 31, 2018
LIABILITIES AND EQUITYCurrent liabilities
Short-term bonds and borrowings
Trade payables
Other current financial liabilities
Income taxes payable
Advances from customers
Other current liabilities
Total current liabilities
Non-current liabilities
Non-current bonds and borrowings
Other non-current financial liabilities
Non-current liabilities for employee benefits
Deferred tax liabilities
Provisions
Other non-current liabilities(Millions of yen)
As ofJune 30, 201812,432
127,4458,539
3,650
10,583
12,28015,184116,094
11,398
1,230
8,872
9,437

174,929

162,215

30,27323,335
9,820
2,185
4,757
256

24,84523,002
9,900
2,294
4,666
152

Total non-current liabilities

70,62664,859Total liabilities

245,555

227,074

EquityCommon stock
Capital surplus
Retained earnings
Other components of equity
Treasury stock

19,87818,89280,352(1,145)(1,873)

19,87818,89580,184(1,128)(1,873)

Total shareholders’ equity

116,104

115,956

Non-controlling interests
Total equity
Total liabilities and equity-7-

20,962

21,167137,066

137,123

382,621364,197

(2) Condensed Quarterly Consolidated Statement of Comprehensive Income
Three months ended
June 30, 2017

(Millions of yen)Three months ended
June 30, 2018

Revenue
Cost of sales

172,458(150,460)

226,301(206,203)

Gross profit

21,99820,098Other expense
Selling, general and administrative expenses
Loss from tangible assets, intangible assets and goodwill
Other – net(17,738)(55)
459(16,238)(246)
324

Total other expense(17,334)(16,160)

Profit from operating activities

4,664

3,938

Financial income and costs
Interest income
Dividends received
Interest expense
Other financial income and costs – net

16
270
(237)
(51)

23
53
(212)
73

Total financial income and costs

(2)

(63)

(71)

619

Share of profit (loss) of investments accounted for by the equity
methodProfit before tax

4,591

4,494

Income tax expense(1,534)(1,285)

Net profit

3,057

3,209

Net profit attributable to:
Net profit attributable to Itochu Enex’s shareholders
Net profit attributable to non-controlling interests

2,523
534

2,544
665

3,057

3,209

Total

-8-

Three months ended
June 30, 2017
Other comprehensive income, net of tax effectItems that will not be reclassified to profit or loss
FVTOCI financial assets
Other comprehensive income of investments accounted for by theequity method
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations
Cash flow hedges
Other comprehensive income of investments accounted for by theequity method(Millions of yen)Three months ended
June 30, 2018

361

59

1

(24)

(15)
(2)

(22)
5

(158)

(2)

187

16

Comprehensive income

3,244

3,225

Comprehensive income attributable to:Comprehensive income attributable to Itochu Enex’s shareholders
Comprehensive income attributable to non-controlling interests

2,710
534

2,560
665

3,244

3,225

Total other comprehensive income, net of tax effect

Total

(Yen)
Earnings per share attributable to Itochu Enex’s shareholders
Basic
Diluted22.33–

Total trading transactions(Note)

245,395

22.54–(Millions of yen)
288,762

Total trading transactions are presented in accordance with the Japanese accounting practices. This item is voluntarily
disclosed by the Company for investors’ convenience and is not required to be disclosed under International Financial
Reporting Standards (“IFRSs”).

-9-(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Three months ended
June 30, 2017

(Millions of yen)Three months ended
June 30, 2018

EquityCommon stock
Balance at the beginning of the period

19,87819,878

Balance at the end of the period

19,87819,878

Capital surplus
Balance at the beginning of the period
Share-based payments

18,740–18,892
3

Balance at the end of the period

18,74018,89573,3002,523–(2,090)80,3522,544
0(2,712)73,73280,184(1,655)(1,145)

188

17

Retained earnings
Balance at the beginning of the period
Net profit attributable to Itochu Enex’s shareholders
Transfer from other components of equity
Cash dividends paid to Itochu Enex’s shareholders
Balance at the end of the period
Other components of equity
Balance at the beginning of the period
Other comprehensive income attributable to Itochu Enex’s
shareholders
Transfer to retained earnings
Balance at the end of the period
Treasury stock
Balance at the beginning of the period
Purchase and disposal of treasury stock
Balance at the end of the period
Total shareholders’ equity
Non-controlling interests
Balance at the beginning of the period
Net profit attributable to non-controlling interests
Other comprehensive income attributable to non-controllinginterests
Cash dividends paid to non-controlling interests
Balance at the end of the period
Total equity- 10 -–(0)(1,467)(1,128)(1,752)(0)(1,873)–(1,752)(1,873)

109,131

115,956

18,966534

20,961
665

0

0

(615)

(459)

18,884

21,167

128,015

137,123

(4) Condensed Quarterly Consolidated Statement of Cash Flows(Millions of yen)Three months ended
June 30, 2017
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss from tangible assets, intangible assets and goodwill
Financial income and costs
Share of loss (profit) of investments accounted for by the equity
methodDecrease in trade receivables
Decrease in inventories
Decrease in trade payables
Other – net
Dividends received
Interest received
Interest expense
Income taxes paid
Net cash flows provided by (used in) operating activities
Cash flows from investing activities
Purchase of investments accounted for by the equity method
Purchase of investments
Proceeds from sales of investments
Acquisition of subsidiaries, net of cash acquired
Payment for loans receivableCollection of loans receivable
Payments for purchase of property, plant and equipment andinvestment property
Proceeds from sales of property, plant and equipment andinvestment property
Purchase of intangible assets
Proceeds from sales of intangible assets
Decrease in deposits paid – net
Other – net
Net cash flows provided by (used in) investing activities- 11 -

Three months ended
June 30, 2018

4,591
2,728
55
2

4,494
2,484
246
63

71

(619)

14,5083,289(18,114)(3,397)
499
11
(170)
(5,944)

10,743
3,131(11,351)(2,530)
267
16
(168)
(3,629)(1,871)

3,147

(468)
(189)
11
(1,288)
(55)
102

(244)
(1)
4
–
(134)
150

(4,192)(3,103)

665

349

(558)
10
3,000
(505)

(307)
31
5,000
(191)

(3,467)1,554

(Millions of yen)Three months ended
June 30, 2017

Three months ended
June 30, 2018

Cash flows from financing activities
Repayments of bonds and borrowings
Net increase (decrease) in short-term borrowings
Cash dividends paid to Itochu Enex’s shareholders
Cash dividends paid to non-controlling interests
Other – net

(886)
1,648
(2,090)
(615)
(1)

(799)
(2,218)(2,712)(459)–

Net cash flows used in financing activities(1,944)(6,188)Net decrease in cash and cash equivalents(7,282)(1,487)

Cash and cash equivalents at the beginning of the period

22,727

22,573(4)(2)

15,441

21,084

Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period- 12 -

(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern
No items to report.
(6) Changes in accounting policies
From the first quarter ended June 30, 2018, the following standards have been applied in accordance withtransitional provision.
Standard

Title

IFRS 9 (revised in July 2014)

Financial Instruments

IFRS 15

Revenue from Contracts with
Customers

Description of new/amended
standards or interpretations
Limited amendments to theclassification and measurement
method for financial assets, andintroduction of the expected credit
loss impairment model
Establishment of accounting anddisclosure on revenue arising fromcontracts with customers(IFRS 9 (revised in July 2014) “Financial Instruments”)
The Group has adopted IFRS 9 (revised in July 2014) “Financial Instruments” effective from the firstquarter ended June 30, 2018. However, there is no substantial effect on the Group.
(IFRS 15 “Revenue from Contracts with Customers”)
The Group has adopted IFRS 15 “Revenue from Contracts with Customers” (issued in May 2014) and“Clarifications to IFRS 15” (issued in April 2016) (hereinafter, “IFRS 15” collectively), from the firstquarter ended June 30, 2018. In line with the adoption of IFRS 15, the Group has recognized revenue at
an amount reflecting consideration to which it expects to be entitled in exchange for goods or services
transferred to the customer, based on the following five-step approach.
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The Group is engaged in the sale of LP gas, gasoline, kerosene, diesel oil, fuel oil, asphalt, electricity,
automobiles, and other goods. For the sale of these products, in recognizing revenue, the Group considers
that a performance obligation is satisfied when the customer is deemed to obtain control of the product inlight of contractual terms and conditions. In addition, revenue is recognized at the amount ofconsideration promised in the contract with the customer less discounts, rebates, returned goods, etc.
As a result of the review made based on this newly stipulated standard in line with the adoption of IFRS
15, the Group decided to change the method for revenue recognition of certain transactions on both anaggregate and net basis. Consequently, revenue and cost of sales each increased by ¥41,884 million in thecondensed quarterly consolidated statement of comprehensive income for the three months ended June 30,
2018, compared with these items in the case where the previous accounting standard had been applied.
Other than this review, the adoption of this standard has no significant impact on the Group.

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(7) Segment Information
For the three months ended June 30, 2017
(Millions of yen)
Reportable segment
Home-Life
DivisionLife &
Industrial
EnergyDivision

Revenue fromexternal customers

22,613109,965

14,05925,821

Intersegment revenue

29

794

1,250

22,642

110,759

Power & Utility Mobility Life
Division
Department

Total

Adjustment

Consolidated

172,458–

172,458–

2,073(2,073)–

15,30925,821

174,531(2,073)

172,458

Revenue

Total revenue
Gross profit

6,702

8,351

2,803

4,142

21,998–21,998

Profit fromoperating activities

761

1,420

1,915

289

4,385

279

4,664

Profit before tax

882

1,444

1,815

197

4,338

253

4,591

Net profit
attributable to
Itochu Enex’s
shareholders

382

980

931

45

2,338

185

2,523

Total assets

60,411

116,201

74,667

48,671

299,950

19,403319,353

Total tradingtransactions

23,826

183,013

14,67023,886245,395–

245,395

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥185 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥19,403 million to total assets represents corporate assets not allocated to reportable segments.
Total trading transactions are unaudited items voluntarily disclosed by the Company and represent the amount ofsales in accordance with Japanese accounting practices.

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For the three months ended June 30, 2018
(Millions of yen)
Reportable segment
Home-Life
DivisionLife &
Industrial
EnergyDivision

22,112

159,106

Power & Utility Mobility Life
Division
Department

Total

Adjustment

Consolidated

226,301–

226,301

Revenue
Revenue fromexternal customers
Intersegment revenue

17,80727,276

42

764

1,407

–

2,213

(2,213)–22,154

159,870

19,21427,276

228,514(2,213)

226,301

5,595

7,732

2,520

4,251

20,098–20,098

Profit fromoperating activities

775

1,084

1,459

326

3,644

294

3,938

Profit before tax

1,130

1,122

1,608

366

4,226

268

4,494

Net profit
attributable to
Itochu Enex’s
shareholders

545

772

831

147

2,295

249

2,544

Total assets

60,943140,331

81,28853,026

335,588

28,609364,197

Total tradingtransactions

24,565

220,893

18,47624,828288,762–

288,762

Total revenue
Gross profit

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥249 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥28,609 million to total assets represents corporate assets not allocated to reportable segments.
Total trading transactions are unaudited items voluntarily disclosed by the Company and represent the amount ofsales in accordance with Japanese accounting practices.

As of March 31, 2018
(Millions of yen)
Reportable segment

Total assets(Note)

Home-Life
DivisionLife &
Industrial
EnergyDivision

66,843

145,108

Power & Utility Mobility Life
Division
Department
80,18963,896

Total

Adjustment

Consolidated

356,036

26,585

382,621

The adjustment of ¥26,585 million to total assets represents corporate assets not allocated to reportable segments.

Change in reportable segments
In the first quarter ended June 30, 2018, the now former Life Energy & Logistics Division and Industrial
Energy & Logistics Division were integrated to form the newly established Life & Industrial Energy
Division, while the Mobility Life Department was newly established.
In line with this, the classification of reportable segments has been changed from the previous Home-Life
Division, Power & Utility Division, Life Energy & Logistics Division and Industrial Energy & Logistics
Division to the Home-Life Division, Life & Industrial Energy Division, Power & Utility Division andMobility Life Department from the first quarter ended June 30, 2018.
Furthermore, in conjunction with the absorption-type merger of TOHOKU TANKU SHOUKAI CO., LTD.,
which was a subsidiary of the Company, by ITOCHU ENEX HOME-LIFE TOHOKU CO., LTD., asubsidiary of the Company, the Group reviewed the management classification and changed the method toinclude the business of TOHOKU TANKU SHOUKAI CO., LTD., which was previously included in the- 15 -

Life Energy& Logistics Division (Life & Industrial Energy Division after the above change), in the HomeLife Division.
Due to the change in segments, segment information for the first three months of the previous fiscal year
and as of the end of the previous fiscal year (March 31, 2018) has been adjusted based on the new segmentclassifications in the first three months ended June 30, 2018.

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