This document is an English translation of financial results report released on April 28, 2017 and written initially in Japanese.
The Japanese original should be considered as the primary version.

April 28, 2017

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2017
<under IFRSs>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Itochu Enex Co., Ltd.
Tokyo Stock Exchange, 1st Section
8133
http://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 of ordinary general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary results briefing material on financial results:
Holding of quarterly financial results presentation meeting:June 21, 2017
June 22, 2017
June 21, 2017
None
Yes (for institutional
investors and analysts)(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended March 31, 2017(from April 1, 2016 to March 31, 2017)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Fiscal year ended
March 31, 2017
March 31, 2016

Net profit
attributable to
Itochu Enex’s
shareholders

Comprehensive
income%Millionsof yen%Millionsof yen%12,74542.2

10,40539.3

13,327

92.4

8,964

37.3

7,469

35.7

6,927

(2.2)

Total tradingtransactions

Profit fromoperatingactivities

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen1,028,939(4.0)

19,67820.1

19,34428.9

1,071,629(22.0)

16,38425.1

15,004

23.4

Basic earnings per
share attributable
to Itochu Enex’s
shareholders

Profit before tax

Diluted earnings
per share
attributable to
Itochu Enex’s
shareholders

Net profit

Return on Equity
obtained as the net
profit attributable
to Itochu Enex' s
shareholders tototal shareholders'equity%Yen
Yen
Fiscal year ended
March 31, 2017
92.09
–
10.0
March 31, 2016
66.10
–
7.5
Reference: Share of profit (loss) of investments accounted for using equity method
500 million yen
For the fiscal year ended March 31, 2017:(672) million yen
For the fiscal year ended March 31, 2016:

Ratio of profit
before tax to total
assetsRatio of profit
from operating
activities to total
tradingtransactions

%

%

6.0
4.7

1.9
1.5

Note: “Total trading transactions” are presented in accordance with the Japanese accounting practices and represent the total
amounts of transactions that the Company and its subsidiaries conducted as a party in contracts and for which they
acted as an agent.

(2) Consolidated financial position
Total assets
As ofMarch 31, 2017
March 31, 2016

Ratio ofshareholders’equity to total
assetsTotal shareholders’equityTotal equity

Millions of yen

Millions of yen

Millions of yen

344,603
304,053

127,477
117,162

108,511
100,526

Shareholders’equity per share
%

Yen

31.5
33.1

960.37889.70(3) Consolidated cash flows
Net cash flows from(used in) operating
activities
Fiscal year ended
March 31, 2017
March 31, 2016

Net cash flows from(used in) investing
activities

Net cash flows from(used in) financing
activities

Cash and cash
equivalents at end of
the period

Millions of yen

Millions of yen

Millions of yen

17,83130,322(14,712)(16,673)(1,195)(9,059)Millions of yen

22,727
20,824

2. Cash dividends
Annual cash dividends per shareFirst
quarterend
Fiscal year ended
March 31, 2016
March 31, 2017
Fiscal year ending
March 31, 2018
(Forecast)Secondquarterend

Third
quarterend

Yen

Yen

Yen

Fiscalyear-end

Ratio of total
amount ofDividend
dividends topayout ratio
total(Consolidated) shareholders’equity(Consolidated)

Total cash
dividends(Total)

Total

Yen

Yen

Millions of yen

%

%

–
–

12.00
13.50

–
–

12.00
18.50

24.00
32.00

2,712
3,616

36.3
34.8

2.7
3.5

–

16.00

–

16.00

32.00

34.8

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2018(from April 1, 2017 to March 31, 2018)

Profit from operating
activities

Total tradingtransactions
Millions of yen

Six months ending
September 30, 2017
Fiscal year ending
March 31, 2018–
1,150,000% Millions of yen

–
11.8

–
16,500(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–(16.2)–
17,800% Millions of yen

–
(8.0)

–
10,400

%

Yen

–

–

(0.0)

92.05

Note: 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:
b. Changes in accounting policies other than the above:c. Changes in accounting estimates:

None
None
None

(3) Number of issued shares (common stock)a. Total number of issued shares at end of period (including treasury stock)
As of March 31, 2017

116,881,106 shares

As of March 31, 2016

116,881,106 sharesb. Number of treasury stock at end of period
As of March 31, 2017

3,892,374 shares

As of March 31, 2016

3,891,809 sharesc. Average number of outstanding shares during period
Fiscal year ended March 31, 2017112,989,021 sharesFiscal year ended March 31, 2016

112,989,557 shares* Financial results reports are not required to be audited.
* Proper use of earnings forecasts, and other special notes
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. Overview of Operating Results and Others, (1) Overview of Operating Results for the
Fiscal Year Ended March 31, 2017” on page 2 of the attached materials for matters relating to earnings
forecasts.

Contents of Attached Materials
1. Overview of Operating Results and Others .............................................................................................. 2(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2017 .................................... 2(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2017 .................................... 5(3) Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2017 andEnding March 31, 2018 ........................................................................................................................ 6
2. Basic concepts underlying selection of accounting standards ................................................................. 6
3. Consolidated Financial Statements ............................................................................................................ 7(1) Consolidated Statement of Financial Position .................................................................................... 7(2) Consolidated Statement of Comprehensive Income .......................................................................... 9(3) Consolidated Statement of Changes in Equity ................................................................................. 11(4) Consolidated Statement of Cash Flows ............................................................................................. 12(5) Notes to Consolidated Financial Statements .................................................................................... 14
Segment Information .......................................................................................................................... 14
Earnings per Share ............................................................................................................................. 17
Significant Events after the Reporting Period ................................................................................. 17

-1-

1.

Overview of Operating Results and Others(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2017
1)

Results of operations
During the fiscal year ended March 31, 2017, the Japanese economy maintained its moderate trend ofrecovery, supported by improvements in corporate earnings and the employment environment, etc.
However, the outlook for the global economy remained uncertain due to factors such as slowing
economies in China and other emerging countries, the UK’s decision to leave the EU, and the changes
in the U.S. government.
In the petroleum products distribution industry, the decline in demand continues and the outlook for
crude oil prices remains uncertain.
In the power market, the spot average price stayed below the level in the corresponding period of theprevious fiscal year until the end of December 2016, but electricity prices rose due to rising costs of
raw materials such as crude oil, Liquefied Natural Gas (LNG) and coal.
In this operating environment, the Itochu Enex Group announced its two-year medium-term businessplan “Moving 2016 —Sowing seeds for tomorrow—” in April 2015, and has advanced its businessbased on following three basic policies:<i>

Improvement of profitability<ii> Sowing seeds for long-term growth strategy<iii> Reinforcement of organizational strength and fundamental strength

In April 2016, we reorganized the business divisions as part of efforts to drive our business forward,
adopting a system of two business groups and four divisions, which is comprised of the “Power & Gas
Business Group,” consisting of the Home-Life Division and the Power & Utility Division, and the“Distribution & Energy Innovation Business Group,” consisting of the Car-Life Division and theEnergy Innovation Division (formerly, the Energy Trade Division). In light of the normalized decline in
the demand for petroleum and the subsequent industrial reorganization, as well as a change in the
management environment following the full liberalization of the electricity and gas retail market, we
stepped up efforts to unify and expedite the establishment of a strategy and the development ofbusinesses by comprehensively consolidating related businesses.
For the full liberalization of the electricity retail market (liberalization of low-voltage) which began in
April 2016, we named electricity supply services for households, which the Itochu Enex Group has
been developing, “e-koto denki!*1” and implemented retail sales through group companies that sell LP
gas, etc. Meanwhile, also in the high-voltage field, we worked to attract new consumers andsignificantly expanded electricity sales volume.
Furthermore, to expand the business fields of the Itochu Enex Group, which previously focused on
domestic businesses, we invested in the Philippines in May 2016 and entered the LP gas sales business.
In addition, in September 2016, we established a new industrial gas filling base in Indonesia.
With emphasis on three forms of energy—oil, gas, and electricity—the Itochu Enex Group offered newvalue proposals to customers by developing products and services in related areas.
As a result of the above activities, revenue during the fiscal year ended March 31, 2017, fell by 4.0%
year on year to ¥695,060 million. Profit from operating activities was ¥19,678 million (up 20.1% year
on year) and net profit attributable to Itochu Enex’s shareholders was ¥10,405 million (up 39.3% year
on year).
*1: Only ECORE Co., Ltd. uses the name “ECORE no e-denki” for its electricity supply services.

-2-

2)

Results of operations by segment<Power & Gas Business Group>
Home-Life Division
In the Home-Life Division during the fiscal year ended March 31, 2017, import prices of LP gas
remained higher year on year in the LP gas sales business. This reflected a rise in crude oil prices after
the Organization of the Petroleum Exporting Countries (OPEC) agreed to cut production at the end of
November 2016. In addition, profit from LP gas sales for home use increased from the previous fiscal
year, supported by an increase in the number of customers by approximately 7,000 (cumulative fromthe beginning of the fourth quarter), while sales of equipment declined from the previous fiscal year
primarily due to a reduction in demand for, among others, photovoltaic power generation systems forindustrial use.
Regarding sales of electricity for households implemented from April 2016 in response to the full
liberalization of the electricity retail market, we secured approximately 32,000 supply contracts(cumulative from the beginning of the fourth quarter), reflecting activities to promote combined sales
with LP gas.
In overseas business, we took a stake in an LP gas sales company (Isla Petroleum & Gas Corporation)
through an investment in the Philippines in May 2016. We have dispatched more personnel with handson experience to the company since January 2017 to reinforce sales to Japanese companies. We are also
working to expand our LP gas sales business in the Philippines using our expertise in LP gas salesacquired in Japan.
In September 2016, construction of the head office building and filling station of PT.ITC ENEXINDONESIA, a producer and seller of industrial gas was completed in the Karawang Industrial Estate,
Indonesia. We will strive to expand sales by having our sales systems in place and adding a new
category of materials.
In the gas-related business, a new factory of J-Cylinder Service Co., a company engaging in thepressure resistance inspection business for containers, began operation in May 2016, and put in place asystem to inspect containers. We will be seeking to attract new customers and improve productivity.
As a result of these activities, revenue was ¥86,484 million (down 5.0% year on year), profit fromoperating activities was ¥4,831 million (up 43.4% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥2,823 million (up 258.4% year on year).

Power & Utility Division
In the Power & Utility Division during the fiscal year ended March 31, 2017, electricity sales volume
in the electricity sales field led by Itochu Enex and Oji-Itochu Enex power retailing Co., Ltd. increased
significantly from the previous fiscal year. This reflected growth in electricity demand from households
following the full liberalization of the electricity retail market in April 2016 and efforts to promotesales of electricity to business users.
In the power generation field, power generated by wind power increased from the previous fiscal year,
due to better wind conditions than in the previous year. However, in the area of thermal power
generation, we adjusted power generation levels based on trends in the spot price of electricity. As aresult, total power generation decreased from the previous fiscal year. Profits in this business increased
significantly year on year, despite a decrease in margins due to a spike in coal prices. This reflected, in
addition to better wind conditions than in the previous year, the recording of a gain on sales as a resultof the sale of some wind power generation facilities owned by ENEX Electric Power Co., LTD. for the
purpose of replacing business assets.
In the heat supply business*2, demand for heat increased year on year due to average temperatures thatwere higher than those of the previous fiscal year during summer and lower than those of the previous
fiscal year from autumn to winter. Profits in this business increased year on year mainly due to a dropin the electric power costs.
In the electricity retailing field, the Power & Utility Division is taking a number of steps. In existingareas of the market that have already been liberalized (high-voltage: for business users), the division-3-

has been reinforcing sales in each area by cooperating with companies having a strong customer
platform in relevant areas. Also, with respect to electricity sales in areas liberalized (low-voltage:
households and other areas), the Power & Utility Division enhances cooperation with other divisions in
the Company. In addition, in order to expand sales channels into other industries, we established Itochu
Enex Life Service Co., Ltd. to support the lifestyle-related business. In January 2017, Itochu Enex Life
Service Co., Ltd. teamed up with Nissan Osaka Sales Co., Ltd., a Group company, to conduct the
Collaborative Business between Cars and Electricity*3, continuing to provide new value proposals
through electricity.
As a result of these activities, revenue was ¥62,827 million (up 48.0% year on year), profit fromoperating activities was ¥6,640 million (up 49.6% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥3,407 million (up 52.1% year on year).
*2 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.
*3 Collaborative Business between Cars and Electricity: Business offering a special electricity plan for customers towhom Nissan Osaka Sales Co., Ltd. sold automobiles to strengthen relationships between customers and Nissan
Osaka Sales Co., Ltd.

<Distribution & Energy Innovation Business Group>
Car-Life Division
In the Car-Life Division, sales volume declined from the corresponding period of the previous fiscal
year, reflecting a continued drop in demand for fuel oil in the domestic market. Profit from operating
activities, however, fell only slightly from the previous fiscal year due to the contribution of Nissan
Osaka Sales Co., Ltd.
As part of our retail strategy, we pushed ahead with the introduction of our new POS system at Car-Life
Stations*4 from the first half of fiscal year 2016 and used the Rakuten Super Points system to exchange
customers with affiliated stores in other sectors. Also, in line with the service on the Internet, we will
actively increase the number of stores affiliated with Rakuten Shaken, a statutory vehicle inspection
service offered by Rakuten, Inc., and implement joint campaigns to attract shaken (vehicle inspection)customers from e-commerce sites.
In the automobile-related business, we launched a new Carlife Stadium service brand and began
operating Carlife Stadium car rentals at ENEXAUTO CO., LTD. from April 2017 as the first businessof the Carlife Stadium service brand. We will work to improve the quality of vehicles and sales
services for customers to expand the functions of the car rental network, while carrying out web-based
promotions.
In Nissan Osaka Sales Co., Ltd., unit sales declined from the previous fiscal year, impacted by a fraudissue at Mitsubishi Motors Corporation. Profit from operating activities, however, resulted in asignificant increase from the previous fiscal year, reflecting the release of new automobile models(Note, Serena, etc.).
The number of Car-Life Stations in the Itochu Enex Group as of March 31, 2017, was 1,888, marking a
net decrease of 85 stations from the end of the previous fiscal year due to disaffiliation of unprofitableand decrepit stations.
As a result of these activities, revenue was ¥469,634 million (down 4.8% year on year), profit fromoperating activities was ¥4,169 million (down 0.6% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥1,576 million (down 21.7% year on year).
*4 Car-Life Stations: Car-Life Stations are service stations offering multiple services provided by the Company.

Energy Innovation DivisionDuring the fiscal year ended March 31, 2017, the Energy Innovation Division faced a structural decline
in demand for domestic petroleum products caused by factors such as more efficient energy use.
Besides, under an operating environment in which the domestic petroleum products market wasaffected by changes in crude oil prices following an adjustment in supply and demand among OPEC

-4-

and other oil-producing countries, profit from operating activities resulted in an increase from theprevious fiscal year, due to efforts to expand business with existing customers and acquire newcustomers, as well as expanding business portfolios.
In this division, we are “appropriately and effectively enhancing and managing assets” and “actively
pushing ahead with new business commercialization projects” as specific priority initiatives, and insales of industrial fuels and materials, logistics functions have been being reinforced by activities of
Kokura Enterprise Logi Service Co., Ltd., which was established in February 2016, to develop sales tosmall-volume users. We are also working to improve the profitability by providing comprehensive
materials covering areas such as electricity sales to business users, in addition to each division’s
existing business. Also, we are working steadily to commercialize new businesses, such as the recovery
and reuse of waste oil from ships, and the use of fly ash discharged from thermal power plants as aconstruction raw material.
Going forward, the division will develop proposals tailored to customer needs while responding
flexibly to changes in the external environment, aiming to conduct business development based on
close cooperation with Group companies.
As a result of these activities, revenue was ¥76,115 million (down 21.5% year on year), profit fromoperating activities was ¥3,924 million (up 4.0% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥2,644 million (up 5.2% year on year).

3)

Forecasts of consolidated financial results for the fiscal year ending March 31, 2018
As a forecast of consolidated financial results for the fiscal year ending March 31, 2018, we areprojecting ¥1,150,000 million in total trading transactions, up 11.8% year on year, ¥16,500 million in
profit from operating activities, down 16.2% year on year, ¥17,800 million in profit before tax, down
8.0% year on year, and ¥10,400 million in net profit attributable to Itochu Enex’s shareholders,remained unchanged from the previous fiscal year.
Basic earnings per share attributable to Itochu Enex’s shareholders is projected at ¥92.05.

(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2017
1)

Analysis of assets, liabilities, equity and cash flows

Assets, liabilities and equity
Total assets amounted to ¥344,603 million as of March 31, 2017, an increase of ¥40,550 million fromMarch 31, 2016, mainly due to an increase in trade receivables. Total liabilities amounted to ¥217,126
million, an increase of ¥30,235 million from March 31, 2016, mainly due to an increase in trade payables.
Total equity totaled ¥127,477 million, an increase of ¥10,315 million from March 31, 2016, due to factors
including increased retained earnings.
We consequently ended the fiscal year with a ratio of shareholders’ equity to total assets of 31.5%.

Cash flows
Cash and cash equivalents (net cash) totaled ¥22,727 million as of March 31, 2017, up ¥1,903 million
from March 31, 2016.

Cash flows from operating activities
Operating activities earned net cash of ¥17,831 million. This was derived mainly from factors including
profit before tax of ¥19,344 million, depreciation and amortization of ¥10,856 million and an increase infunds required for trading of ¥3,117 million.

Cash flows from investing activities-5-Investing activities used net cash of ¥14,712 million. Major items included purchase of investments
accounted for by the equity method of ¥2,649 million, payments for purchase of property, plant andequipment and investment property and purchase of intangible assets of ¥10,058 million, proceeds fromsales of property, plant and equipment and investment property and proceeds from sales of intangible
assets of ¥2,979 million and increase in deposits paid of ¥9,000 million.

Cash flows from financing activities
Financing activities used net cash of ¥1,195 million. Major items included proceeds from bonds andborrowings of ¥1,899 million and cash dividends paid of ¥3,226 million.

2)

Cash flow indicators
Fiscal year ended March 31,
Ratio of shareholders’ equity to total assets (%)
Ratio of shareholders’ equity to total assets at market
value (%)
Ratio of cash flow to interest-bearing debt (years)
Interest-coverage ratio (times)

2015
29.6

2016
33.1

2017
31.5

34.0

33.6

30.2

1.2
46.0

1.2
33.5

2.3
19.2

Ratio of shareholders’ equity to total assets: Total shareholders’ equity / Total assets
Ratio of shareholders’ equity to total assets at market value: Market capitalization / Total assets
Ratio of cash flow to interest-bearing debt: Interest-bearing debt / Cash flow
Interest-coverage ratio: Cash flow / Interest expense(Note 1.) All of the above ratios were calculated using consolidated financial statement data.
(Note 2.) Market capitalization was calculated by multiplying the fiscal-year-end closing share price by
the number of shares outstanding at fiscal year-end (net of treasury stock).
(Note 3.) “Cash flow” is “Cash provided by (used in) operating activities” on the Consolidated
Statement of Cash Flows.
(Note 4.) Interest-bearing debt is all debt, of the debt carried on the Consolidated Statement of
Financial Position, on which interest is payable.

(3) Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2017 and Ending
March 31, 2018
In terms of shareholder returns, we aim to maintain a consolidated dividend payout ratio of at least 30% in
accord with our policy of paying stable dividends on an ongoing basis while maintaining sustained
business growth.
For the fiscal year ended March 31, 2017, we plan to pay a year-end dividend of ¥18.50 per share. For the
fiscal year ending March 31, 2018, we plan to pay annual dividends of ¥32 per share (including an interim
dividend of ¥16 per share).
With respect to internally retained funds, our basic policy is to use such funds to invest in our business tostrengthen our operating foundation and further increase earnings.

2.

Basic concepts underlying selection of accounting standards
The Itochu Enex Group adopted IFRS (International Financing Reporting Standards) from the fiscal year
ended March 2014, in order to improve international comparability and the convenience of financial
information in capital markets.

-6-

3.

Consolidated Financial Statements(1) Consolidated Statement of Financial Position
As ofMarch 31, 2016
ASSETS
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-7-(Millions of yen)
As ofMarch 31, 2017

20,824
71,968
16,52925,1601,781
1,603

22,727
94,75929,70927,1551,900
1,877

137,865

178,127

8,786
8,029
9,895
88,311
13,262588
24,329
11,622
1,366

11,7497,461
10,80387,588
11,986533
23,638
11,3591,359

166,188

166,476

304,053

344,603As ofMarch 31, 2016
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 ofMarch 31, 2017

5,299
80,745
5,229
3,351
6,637
10,736

9,318
101,902
8,719
5,258
6,460
12,094

111,997

143,751

32,36624,384
10,127
2,103
5,396
518

31,702
24,501
9,761
1,961
5,052
398

Total non-current liabilities

74,89473,375

Total liabilities

186,891

217,126

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

19,87818,74066,024(2,364)(1,752)

19,87818,74073,300(1,655)(1,752)

Total shareholders’ equity

100,526

108,511

Non-controlling interests
Total equity
Total liabilities and equity-8-

16,636

18,966

117,162

127,477

304,053

344,603(2) Consolidated Statement of Comprehensive Income
Fiscal year ended
March 31, 2016

(Millions of yen)
Fiscal year ended
March 31, 2017

Revenue
Cost of sales

723,645(634,083)

695,060(601,456)

Gross profit

89,56293,604

Other expense
Selling, general and administrative expenses
Loss from tangible assets, intangible assets and goodwill
Other – net(73,226)(593)
641(74,697)
(982)
1,753

Total other expense(73,178)(73,926)

Profit from operating activities

16,384

19,678Financial income and costs
Interest income
Dividends received
Interest expense
Other financial income and costs – net

54
242(1,004)
0

89
246
(966)
(203)

Total financial income and costs

(708)

(834)

(672)

500

15,004

19,344

Share of profit (loss) of investments accounted for by the equity
methodProfit before tax
Income tax expense
Net profit
Net profit attributable to Itochu Enex’s shareholders
Net profit attributable to non-controlling interests-9-(6,040)(6,599)8,964

12,745

7,469
1,495

10,4052,340

Fiscal year ended
March 31, 2016
Other comprehensive income (net of tax effect)
Items that will not be transferred to profit or loss
FVTOCI financial assets
Remeasurement of net defined benefit liability
Other comprehensive income in associates accounted for by theequity method
Items that may be transferred to profit or loss
Exchange differences on translating foreign operations
Cash flow hedges
Other comprehensive income in associates accounted for by theequity method
Total other comprehensive income (net of tax effect)
Comprehensive income
Comprehensive income attributable to Itochu Enex’s shareholders
Comprehensive income attributable to non-controlling interests(Millions of yen)
Fiscal year ended
March 31, 2017

(384)
(714)

78
206

2

0

(14)
107

(37)
111

(1,034)224(2,037)

582

6,927

13,327

5,697
1,230

10,866
2,461(Yen)

Earnings per share attributable to Itochu Enex’s shareholders
Basic
DilutedTotal trading transactions(Note)

66.10–

1,071,629

92.09–(Millions of yen)
1,028,939

Total trading transactions are presented in accordance with the Japanese accounting practices and represent the total
amounts of transactions that the Company and its subsidiaries conducted as a party in contracts and for which they
acted as an agent. This item is voluntarily disclosed by the Company for investors’ convenience and is not required tobe disclosed under International Financial Reporting Standards (“IFRSs”).

- 10 -

(3) Consolidated Statement of Changes in Equity
Fiscal year ended
March 31, 2016

(Millions of yen)
Fiscal year ended
March 31, 2017

EquityCommon stock
Balance at the beginning of the period

19,87819,878

Balance at the end of the period

19,87819,87818,743(3)

18,740–18,74018,74062,223
7,469(1,069)(2,599)66,024
10,405(248)(2,881)

66,02473,300(1,661)(2,364)(1,772)461

Capital surplus
Balance at the beginning of the period
Acquisition of subsidiary shares from non-controlling interests
Balance at the end of the period
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
Changes due to additional acquisition and sale of interests in
subsidiaries
Balance at the end of the period
Total equity- 11 -

1,069

248(2,364)(1,655)(1,751)(1)(1,752)(0)(1,752)(1,752)

100,526

108,511

15,515
1,495

16,636
2,340

(265)

120

(110)

(345)

–

215

16,636

18,966

117,162

127,477

(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2016
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss from tangible assets, intangible assets and goodwill
Financial income
Share of loss (profit) of investments accounted for by the equity
methodDecrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other – net
Interest and dividends received
Interest expense
Income taxes paid
Net cash flows provided by operating activities
Cash flows from investing activities
Purchase of investments accounted for by the equity method
Proceeds from sales of investments accounted for by the equity
methodPurchase of investments
Proceeds from sales of investments
Acquisition of subsidiaries, net of cash acquired
Proceeds from sales 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
Increase in deposits paid – net
Other – net
Net cash flows used in investing activities- 12 -

Fiscal year ended
March 31, 2017

15,004
12,608593
708

19,344
10,856
982
834

672

(500)

24,4382,659(23,999)
1,842
434
(906)
(3,731)(22,938)(1,337)
21,158(4,629)510(927)(5,522)30,322

17,831(14)(2,649)12–(5,147)4,490(1,690)
–
(191)
350

(30)
1,472
(645)
3,001
(1,661)
1,710(10,609)(8,436)

1,942

2,810

(1,689)70(4,000)(197)(1,622)169(9,000)169(16,673)(14,712)(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

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

8,315(9,472)(5,192)–(2,599)
(110)
(1)

7,500
(3,858)(1,743)132(2,881)(345)(0)

Net cash flows used in financing activities(9,059)(1,195)

Net increase in cash and cash equivalents

4,590

1,924

Cash and cash equivalents at the beginning the period

16,184

20,824

Effect of exchange rate changes on cash and cash equivalents

(27)

(21)

Increase in cash and cash equivalents resulting from merger

77–

20,82422,727

Cash and cash equivalents at the end of the period- 13 -

(5) Notes to Consolidated Financial Statements
Segment Informationi) Outline of Reportable Segments
The reportable segments of the Group are components of the Group whose separate financial
information is available. These segments are periodically evaluated by the Board of Directors indeciding how to allocate management resources and in assessing performance.
The Group is organized into divisions under two business groups, consolidating related businesses.
Each division plans strategies for each category of target customers and markets and develops businessactivities. The Group has four reportable segments that correspond to the divisions, namely the “HomeLife Division,” “Power & Utility Division,” “Car-Life Division,” and “Energy Innovation Division.”
The Home-Life Division is engaged in the sale of LP gas, town gas (Nakatsu City, Oita Prefecture),high-pressure gas, kerosene, electricity, equipment (gas equipment, air conditioning, other household
equipment, etc.), smart energy equipment (photovoltaic power generation systems, ENEFARM
residential fuel cells), and ENE-POWABO S residential lithium-ion electricity storage systems, as wellas in remodeling and a pressure resistance inspection business for gas containers.
The Power & Utility Division operates a power generation business (coal, fuel oil, natural gas, wind,hydropower, photovoltaic power, etc.), and is engaged in the sale of electricity (extra high-voltage,high-voltage power), provision of district heating services, sale of steam, and provision of thermal
storage contract-based services.
The Car-Life Division is engaged in the sale of gasoline, kerosene, diesel oil, fuel oil, automobiles,
automotive lubricants, and automobile products, as well as operating automobile dealerships andproviding motor-vehicle inspection and auto maintenance, car wash, car body repair services, and car
rental system.
The Energy Innovation Division is engaged in the sale of industrial energy and materials (gasoline,
kerosene, diesel oil, fuel oil, LNG, and coal), asphalt, high-grade urea solution “AdBlue,” marine fuel,and lubricating oil, as well as the import/export and domestic supply/demand adjustment trading of
petroleum products, chartering and operation of tankers, and provision of logistics services for
petroleum and chemical products storage tanks and facilities, etc., development and promotion of
global business, and other business activities.

During the fiscal year ended March 31, 2017, the Company has changed the name of “Home-Life
Division” to “Home-Life Division,”* “Power & Utility Division” to “Power & Utility Division,”*“Car-Life Division” to “Car-Life Division,”* and “Energy Trade Division” to “Energy Innovation
Division.”
Segment information during the previous fiscal year ended March 31, 2016 has been represented by thename after the change.

*Though the original Japanese has been changed, the English translation remains unchanged.

- 14 -

ii) Information on Reportable Segments
Fiscal year ended March 31, 2016
(Millions of yen)
Reportable segment
Home-Life

Power &
Utility

Car-Life

EnergyInnovation

Total

Other

Total

Revenue fromexternal customers

91,03542,463

493,160

96,987

723,6450723,645–

723,645

Intersegment revenue

586

302

3,093

851

4,832

–

4,832

(4,832)–

Total revenue

91,621

42,765496,253

97,838728,4770728,477(4,832)

723,645

Gross profit

26,221

7,435

47,3628,544

89,562089,562–

89,562

Selling, general andadministrative
expenses(23,158)(2,985)(42,895)(4,721)(73,759)(0)(73,759)533(73,226)

Profit (loss) fromtangible assets,intangible assets andgoodwill

39

(24)

(612)

(30)

(627)

–

(627)

34

(593)

Other profit (loss)

265

13

339

(19)

598

1

599

42

641

Profit fromoperating activities

3,367

4,439

4,194

3,774

15,774

1

15,775609

16,384

Financial income(costs)

20

(267)

(427)

(74)

(748)

0

(748)

40

(708)

Share of profit (loss)of investments
accounted for by theequity method

(756)

41

(17)

60

(672)

–

(672)

–

(672)

Profit before tax

2,631

4,213

3,750

3,760

14,3541

14,355649

15,004

Net profit
attributable to
Itochu Enex’s
shareholders

788

2,240

2,014

2,514

7,556

1

7,557

(88)

7,469

(4,232)(3,867)(3,371)(679)(12,149)–(12,149)(459)(12,608)

Adjustment Consolidated

Revenue

Other items
Depreciation andamortization
Impairment loss

(5)

–

(682)

–

(687)

–

(687)

–

(687)

Total assets

60,404

55,144116,484

50,284282,316–

282,316

21,737304,053

Investments
accounted for by
the equity method

5,821

2,370

99

496

8,786

–

8,786

0

8,786

Capitalexpenditures

4,545

4,638

2,573

352

12,108–

12,108191

12,299Total tradingtransactions

95,12643,495534,156

398,852

1,071,629

0

1,071,629–

1,071,629(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of negative ¥88 million to net profit attributable to Itochu Enex’s shareholders represents corporate
profit not allocated to reportable segments.
The adjustment of ¥21,737 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.

- 15 -

Fiscal year ended March 31, 2017
(Millions of yen)
Reportable segment
Home-Life

Power &
Utility

Car-Life

EnergyInnovation

Total

Other

Total

Revenue fromexternal customers

86,48462,827

469,634

76,115695,060–

695,060–

695,060

Intersegment revenue

344

715

1,498

834

3,391

–

3,391

(3,391)–

Total revenue

86,82863,542

471,132

76,949698,451–

698,451(3,391)

695,060

Gross profit

27,446

9,259

48,2008,699

93,604–

93,604–

93,604

Selling, general andadministrative
expenses(23,385)(3,424)(43,244)(4,751)(74,804)–(74,804)

107(74,697)

Profit (loss) fromtangible assets,intangible assets andgoodwill

526

(253)

(1,235)

(19)

(981)

–

(981)

(1)

(982)

Other profit (loss)

244

1,058

448

(5)

1,745

–

1,745

8

1,753

Profit fromoperating activities

4,831

6,640

4,169

3,924

19,564–

19,564114

19,678Financial income(costs)

67

(307)

(306)

(200)

(746)

–

(746)

(88)

(834)

Share of profit (loss)of investments
accounted for by theequity method

441

0

(5)

64

500

–

500

–

500

Profit before tax

5,339

6,333

3,858

3,788

19,318–19,31826

19,344

Net profit
attributable to
Itochu Enex’s
shareholders

2,823

3,407

1,576

2,644

10,450–10,450(45)

10,405

Depreciation andamortization(3,475)(3,264)(3,131)(686)(10,556)–(10,556)(300)(10,856)

Impairment loss

(40)

–

(952)

–

(992)

–

(992)

–

(992)

Total assets

65,03370,700123,265

55,586

314,584–

314,584

30,019344,603

Investments
accounted for by
the equity method

7,682

3,530

92

445

11,749–11,749–11,749

Capitalexpenditures

3,683

2,990

1,718

609

9,000

–

9,000

1,058

10,058

Total tradingtransactions

90,76865,654

511,156

361,361

1,028,939–

1,028,939–

1,028,939

Adjustment Consolidated

Revenue

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of negative ¥45 million to net profit attributable to Itochu Enex’s shareholders represents corporate
profit not allocated to reportable segments.
The adjustment of ¥30,019 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.

- 16 -

iii) Products and Services Information
This information is omitted because the classification of products and services is the same as theclassification of reportable segments.

iv) Geographic Information
This information is omitted because revenue from external customers in Japan accounts for a large
percentage of the revenue recorded in the consolidated statement of comprehensive income for the
fiscal years ended March 31, 2016 and 2017.

v) Major Customers Information
This information is omitted because there is no major external customer from which revenue accounts
for 10% or more of the revenue recorded in the consolidated statement of comprehensive income forthe fiscal years ended March 31, 2016 and 2017.

Earnings per Share
Basic earnings per share for the fiscal years ended March 31, 2016 and 2017, were calculated asfollows:
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Net profit attributable to Itochu Enex’s shareholders(Millions of yen)

7,469

10,405Weighted-average number of ordinary shares outstanding(Thousands of shares)

112,990

112,989

Basic earnings per share attributable to Itochu Enex’s shareholders
(Yen)

66.10

92.09

(Note)

Diluted earnings per share attributable to Itochu Enex’s shareholders are not presented because there were no
dilutive potential shares.

Significant Events after the Reporting Period
No items to report- 17 -