This document is an English translation of quarterly financial results report released on July 31, 2014 and written initially inJapanese.
The Japanese original should be considered as the primary version.

July 31, 2014

Consolidated Financial Results for the First Three Months of
the Fiscal Year Ending March 31, 2015
<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, President
Naohiko Takamura, General Manager, Finance and Accounting Department
Tel: +81-3-6327-8010

Scheduled date to file quarterly securities report:
Scheduled date to commence dividend payments:
Preparation of supplementary results briefing material on quarterly financial results:
Holding of quarterly financial results presentation meeting:

August 11, 2014
–
None
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, 2015
(from April 1, 2014 to June 30, 2014)(Percentages indicate year-on-year changes.)(1) Consolidated operating results
OperatingincomeNet sales

Three months ended
June 30, 2014
June 30, 2013

Profitattributable toowners ofparentTotal
comprehensive
incomeMillionsof yen%Millionsof yen%%(33.6)

943(33.5)

763(36.8)

1,050(24.7)

–

1,418

–

1,207

–

1,395

–

%

Millionsof yen%Millionsof yen%335,972

1.5

1,632

(34.8)

1,684

330,939

–

2,504

–

2,535

Diluted earnings
per share

Yen

6.75
10.68

ProfitMillionsof yenMillionsof yenBasic earnings
per share
Three months ended
June 30, 2014
June 30, 2013

Profit before tax

Yen

–
–

Note: “Net sales” are presented in accordance with the Japanese accounting practices and represent the total sum of amountsof transactions that the Company and its consolidated subsidiaries conducted as a party to the contract and transactions
in which the Company and its consolidated subsidiaries were involved as an agent.
“Operating income” represents “Profit from operating activities” in the condensed quarterly consolidated statement ofcomprehensive income.
“Basic earnings per share” are calculated based on “Profit attributable to owners of parent.”

(2) Consolidated financial position
Total assets
As ofJune 30, 2014
March 31, 2014

Ratio of equity
attributable to ownersof parent to total assets

Equity attributable toowners of parent

Total equity

Millions of yen

Millions of yen

Millions of yen

335,609
321,032

108,592
103,563

93,65994,144

%

27.9
29.3

2. Cash dividends
Annual cash dividends per share
Second quarterend

First quarter-end
Yen

Fiscal year ended
March 31, 2014–

Fiscal year ending
March 31, 2015–

Fiscal year ending
March 31, 2015
(Forecast)Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

8.00

–

12.00

20.00

11.00

–

11.00

22.00

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

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2015
(from April 1, 2014 to March 31, 2015)
Net sales
Millions of yen

Six months ending
September 30, 2014
Fiscal year ending
March 31, 2015

Operating income(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Profit before tax
owners of parent
per share% Millions of yen% Millions of yen% Millions of yen

%

Yen

–

–

–

–

–

–

–

–

–

1,600,000

6.2

13,80016.2

13,800

(0.3)

7,600

6.7

67.26

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 firstsix 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:

Yes
None
None

For details, please refer to “2. Matters Regarding Summary Information (Notes), (2) Changes in Accounting Policies,
Changes in Accounting Estimates, and Restatement of Prior Period Financial Statements” on page 6 of the attachedmaterials.

(3) Number of issued shares (common shares)
a. Total number of issued shares at end of period (including treasury shares)
As of June 30, 2014

116,881,106 shares

As of March 31, 2014

116,881,106 sharesb. Number of treasury shares at end of period
As of June 30, 2014

3,890,055 shares

As of March 31, 2014

3,890,015 sharesc. Average number of outstanding shares during period (cumulative from the beginning of the fiscal year)
For the three months ended June 30, 2014

112,991,081 shares

For the three months ended June 30, 2013

112,992,338 shares* Indication regarding execution of quarterly review proceduresThis quarterly financial results report is out of the scope of the quarterly review procedures that are
required by the Financial Instruments and Exchange Act. At the time of disclosure of this quarterly
financial results report, the quarterly review procedures for the condensed quarterly financial statements
pursuant to the Financial Instruments and Exchange Act are in progress.
* 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. 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. Matters Regarding Summary Information (Notes) ....................................................................................... 5(1) Changes in Significant Subsidiaries during the Period ........................................................................... 5(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Prior Period
Financial Statements ............................................................................................................................... 6
3. Condensed Quarterly Consolidated Financial Statements ............................................................................ 7(1) Condensed Quarterly Consolidated Statement of Financial Position ..................................................... 7(2) Condensed Quarterly Consolidated Statement of Comprehensive Income ............................................ 9(3) Condensed Quarterly Consolidated Statement of Changes in Equity................................................... 11(4) Condensed Quarterly Consolidated Statement of Cash Flows ............................................................. 12(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern........................................... 13(6) Segment Information ............................................................................................................................ 13(7) Business Combinations......................................................................................................................... 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, 2014, the Japanese economy overall showed positive signs
such as increased capital investments resulting from improved corporate earnings underpinned by theeffects of the government economic policies and ongoing monetary easing by the Bank of Japan.
Meanwhile, in personal consumption, the impact was seen through the pullback in demand in the wakeof a surge ahead of the consumption tax hike in April 2014.
In the petroleum products distribution industry, due to the impact of the surge in the crude oil price as aresult of geopolitical risks such as the situation in the Ukraine or Iraq and the continuously weakening
yen, domestic petroleum product prices were trending high, and also due to the impact of theconsumption tax hike, sales volumes decreased from the corresponding period a year earlier, especiallyfor gasoline and kerosene.
On the other hand, with regard to the power market, due to the continued shutdown of nuclear power
plant operations, spot prices were high.
In this operating environment, the Itochu Enex Group has formulated its Fiscal 2014 Group Business
Plan, “Moving 2014,” and pushed ahead with the following six priority measures:< 1 > Transform the petroleum and gas business model< 2 > Create new businesses to obtain new revenue sources< 3 > Further expand existing businesses through M&As
< 4 > Develop business base and network for power and utility business< 5 > Develop and cultivate overseas business< 6 > Upgrade “Enex DNA”
As a part of its efforts in promoting these measures, in May, the Company made Osaka Car Life Group
Co., Ltd., which has subsidiaries including Nissan Osaka Sales Co., Ltd., into a subsidiary. By so doing
the Company made a full-scale entry into the new car sales business and pursues synergies withexisting automobile-related businesses.
As a result of the above activities, during the three months ended June 30, 2014, revenue increased
4.3% year on year to ¥226,788 million, with the new consolidation of Osaka Car Life Group Co., Ltd.
and others as well as an increase in revenue from the electricity and steam supply business, etc.
Through the contribution of the new consolidation to profits, gross profit increased 4.6% year on yearto ¥17,155 million, while profit before tax decreased 33.6% year on year to ¥1,684 million, despite anincrease in gross profit, due to an increase in expenses resulting from the new consolidation, and byrecording loss relating non-current assets. Profit attributable to owners of parent decreased 36.8% year
on year to ¥763 million, owing to the decrease in profit before tax.
In addition, with respect to the management indices targeted by the Itochu Enex Group after theapplication of IFRSs, we use “ROA” (ratio of profit before tax to total assets), “ROE” (ratio of profit toequity attributable to owners of parent) and “EPS” (earnings per share), to improve efficiency of assets
and capital.

2)

Results of operations by segment
Home-Life Division
In the Home-Life Division, while the sales volume of LP gas decreased slightly from a year earlier,owing to the rather higher average temperatures in Japan compared to the corresponding period a year
earlier. In the profit and loss aspect, although a certain level of profitability could be ensured throughthe gas rate adjustment system employed to deal with fluctuations of the import price of LP gas, profits
decreased year on year due to the impact of the decrease in sales volume.
Under such conditions, we started the “Smart Life” campaign in June at Group companies, aiming at-2-

promoting the spread of photovoltaic power generation systems, ENEFARM residential fuel cells, andhigh-performance and high-efficiency gas equipment. In addition, in July, we launched the “All Japan
Appliance Sales Dream Matching Campaign” at our Group sales distributors nationwide. As a company
which proposes an optimal mix of home energy, we will offer Smart Life to customers to realize
affluent and comfortable lifestyles, via nationwide Group companies and distributors.
As a result of these activities, revenue was ¥26,031 million (down 0.4% year on year), gross profit was¥5,874 million (down 5.2% year on year), and profit before tax was ¥544 million (down 42.1% year onyear).
Car-Life Division
In the Car-Life Division, in addition to the continuing decline in domestic demand due to the impact ofthe price of petroleum products, which is hovering at high levels affected by high crude oil prices andyen-depreciation since the previous fiscal year, and increasing popularization of fuel efficient vehicles,
there was also a pullback in demand in the wake of a surge ahead of the consumption tax hike, and thesales volume was down from a year earlier. In the aspect of profit and loss, meanwhile, despite theattempt to grow the Car-Life profits*1 of Group companies, profits fell year on year, heavily impacted
by the compression of the distribution margin due to a surge in crude oil prices and reluctance ofconsumers to purchase.
In addition, we made Osaka Car Life Group Co., Ltd. into a subsidiary in May, and made a full-scale
entry into the new car sales business. This company is a holding company, with subsidiaries including
Nissan Osaka Sales Co., Ltd., the largest Nissan Motor Co., Ltd.-affiliated dealer in Japan with net
sales of approximately ¥100.0 billion, and is the only Nissan dealer within Osaka Prefecture. Goingforward, starting with sales of new cars, we will build even closer relationships with customers throughthe life cycle of vehicles, such as maintenance and repair services, automobile insurance sales, vehicle
inspection, sales of used cars, etc., while also working on synergies with the CS*2 business that we havecultivated, and strengthen the Car Life value chain.
In the retail strategy, we will continue improving profitability of Car-Life Stations, continuously
promoting support for operation of the Stations by sharing of successful examples through “ENEX
ACT Program*3,” which has been developed for the purpose of strengthening competitiveness of CarLife Stations of the Company.
The number of Car-Life Stations of the Itochu Enex Group as of June 30, 2014 was 2,101; a net
decrease of 17 stations from the end of the previous fiscal year. During the three months ended June 30,
2014, impacted by the trend of decrease in the number of nationwide gas stations, we lost 31 stations
through disaffiliation of unprofitable and decrepit stations, etc. while adding 14 newly affiliatedstations.
As a result of these activities, revenue was ¥137,768 million (up 9.6% year on year), gross profit was¥8,187 million (up 17.3% year on year), and loss before tax was ¥517 million (compared with profit
before tax of ¥98 million in the same period of the previous fiscal year).
*1 Car-Life Profits: Car-Life profits include profits from car wash, lube oil, tires, car inspection, plating, sales of usedcars, and rent-a-car, etc.), excluding sales of fuel oil.
*2 Car-Life Stations: Car-Life Stations are full-service automobile service stations affiliated with Itochu Enex.
*3 ENEX ACT Program: Under this program, we work closely with Car-Life Station operators to raise theircompetitiveness by analyzing their station operations and competitive climate, conducting group training, andengaging in other activities.

Power & Utility Division
In the Power & Utility Division, due to the continued suspension of nuclear power plant operations, thespot price of electricity has remained firm.
In the electricity and steam supply business*4, regarding the power generation area centering on JEN
Holdings Co., Ltd., although the wind power generation using renewable energy and photovoltaic
power generation remained steady, due to the impact of regular inspections of thermal power plants,-3-and other factors, electricity production was below the corresponding period a year earlier. Meanwhile,regarding the electricity sales area centering on the Company, looking ahead to the full liberalization ofelectricity retail market in 2016, we are strengthening our efforts to expand the electricity business. In
the previous fiscal year we sold electricity within the area controlled by each power company in Tokyo,
Kansai and Chugoku areas. In this first quarter, however, we for the first time started selling electricity
in the areas controlled by respective power companies in Tohoku, Chubu and Kyushu, andconsequently, the amount of electricity sold under the division increased slightly from thecorresponding period a year earlier. Profits also grew year on year thanks to prices remaining high inthe wholesale power market, despite the increase in cost of sales, including a surge in fuel cost.
In the heat supply business*5, the amount of heat sold was at the same level as in the corresponding
period a year earlier, thanks to an increase in heat sold due to an increase in the number of tenants at
customers, despite the decrease in the amount of heat sold as a result of efforts for energy conservationin the supply areas. Profits were somewhat down year on year due to an increase in raw materials costs,
etc.
In the LNG sales business, the sales volume increased year on year with an increased sales to new
customers who began transacting in the previous fiscal year.
As a result of these activities, revenue was ¥8,273 million (up 6.1% year on year), gross profit was¥1,651 million (up 10.6% year on year), and profit before tax was ¥1,207 million (up 36.1% year onyear).
*4 Electricity and steam supply business: Electricity and steam supply business supplies electricity and steam
generated at time of power generation.
*5 Heat supply business: Heat supply business supplies cold and hot water for air conditioning to multiple officebuildings and other buildings from a heat source plant using pipes.

Energy Trade Division
Energy Trade Division continued to face a difficult operating environment due to continuing slowing
trend in demand for petroleum products, and a compression in distribution margins due to a surge incrude oil prices despite a move to reduce production of petroleum products.
At present, we are promoting development and expansion of the distribution functions for petroleum
and other products.
In the domestic marine fuel sales business, we have deployed nine dedicated fuel supply ships
nationwide in marine fuel sales for domestic operations, and in the AdBlue sales business, in responseto the increasing popularization of urea SCR vehicles*6, we have deployed 18 AdBlue supply bases
nationwide.
In addition, in the asphalt sales business, we have established an asphalt supply network centering on
11 asphalt terminals nationwide and three company-owned vessels to carry asphalt. In the petroleum
products trading business, we have built an optimal logistics environment by working to reinforce thefacilities and functions in each business such as deploying oil storage depots and company-owned
vessels for domestic operation.
We will continue working for further optimization and sophistication of our logistics functions in orderto respond flexibly and swiftly to diversifying customer needs and market environment changes inJapan and abroad.
As a result of these activities, revenue was ¥54,684 million (down 5.3% year on year), gross profit was¥1,412 million (down 17.0% year on year), and profit before tax was ¥180 million (down 51.2% year
on year).
*6 Urea SCR vehicle: Urea SCR vehicle purifies NOx using urea solution (AdBlue) and Selective Catalytic Reduction
to reduce NOx in exhaust gas from diesel engines.

-4-(2) Explanation of Financial Position
Assets, liabilities and equity
Total assets amounted to ¥335,609 million at June 30, 2014, an increase of ¥14,577 million from March
31, 2014. Total liabilities amounted to ¥227,017 million, an increase of ¥9,548 million from March 31,
2014. Total equity amounted to ¥108,592 million, an increase of ¥5,029 million from March 31, 2014.
The increases in total assets, total liabilities and total equity are all mainly due to increases resulting fromthe new consolidation of Osaka Car Life Group Co., Ltd. and others, in particular.
Cash flows
Cash and cash equivalents (net cash) totaled ¥16,113 million at June 30, 2014, an increase of ¥1,862
million from March 31, 2014, due to an increase in funds required for trading, etc.
Cash flows from operating activities
Operating activities earned net cash of ¥9,627 million. This was derived mainly from inflows including
profit before tax of ¥1,684 million, and depreciation expense, etc. of ¥2,344 million and increase in funds
required for trading of ¥8,238 million, and an outflow of income taxes paid of ¥4,871 million.
Cash flows from investing activities
Investing activities used net cash of ¥6,250 million. The main items were expenditures including
payments for property, plant and equipment and investment property of ¥4,160 million and payments forthe acquisition of Osaka Car Life Group Co., Ltd. of ¥2,202 million.
Cash flows from financing activities
Financing activities used net cash of ¥1,504 million. The main items were ¥1,356 million for dividends
paid.
(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 30, 2014.

2.

Matters Regarding Summary Information (Notes)(1) Changes in Significant Subsidiaries During the Period
No items to report.

-5-(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Prior
Period Financial Statements
The Itochu Enex Group has applied the following Standards and Interpretations from the three months
ended June 30, 2014 in accordance with the respective transitional measures.
Standard

Name of standard

Description of issuance and amendments

IAS 32Financial Instruments: Presentation

Clarification of requirements for presentation of
offsetting financial assets and financial
liabilities

IAS 39Financial Instruments: Recognition andMeasurement

Novation of derivatives and continuation ofhedge accounting

IFRIC 21

Levies

Accounting treatment for liabilities associatedwith levies

IFRS 10

Consolidated Financial Statements

IFRS 12Disclosure of Interests in Other Entities

IAS 27

Separate Financial Statements

Accounting treatment for investment held by
investors

As a result of the application of the IFRIC Interpretation 21 “Levies” as per the above, in the consolidated
statement of financial position as of March 31, 2014, deferred tax assets increased by ¥308 million andother current financial liabilities increased by ¥865 million. In addition, in the consolidated statement offinancial position as of June 30, 2014, other current assets decreased by ¥572 million, deferred tax assets
increased by ¥205 million, and other current financial liabilities increased by ¥2 million.
In the quarterly consolidated statement of comprehensive income for the three months ended June 30,
2013 and for the three months ended June 30, 2014, cost of sales decreased by ¥69 million and ¥127
million, respectively, and distribution, general and administrative expense decreased by ¥151 million, and¥162 million, respectively.
No other significant impact on the Itochu Enex Group exists from the application of the Standards andInterpretations.

-6-

3.

Condensed Quarterly Consolidated Financial Statements(1) Condensed Quarterly Consolidated Statement of Financial Position
As ofMarch 31, 2014ASSETS
Current assets
Cash and cash equivalents
Operating receivables
Other current financial assets
Inventories
Trade advances paid
Other current assets
Total current assets
Non-current assets
Investments accounted for using 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 ofJune 30, 2014

14,251
140,289
11,21318,655
2,108
1,677

16,113
111,631
13,34026,2552,104
2,183

188,193

171,626

5,927
7,349
10,59866,988
14,236229
10,28015,470
1,762

5,756
8,062
10,651
83,976
15,456229
23,20014,828
1,825

132,839

163,983

321,032

335,609As ofMarch 31, 2013
LIABILITIES AND EQUITYCurrent liabilities
Current bonds and borrowings
Operating payables
Other current financial liabilities
Income taxes payable
Advances received
Other current liabilities
Total current liabilities
Non-current liabilities
Non-current bonds and borrowings
Other non-current financial liabilities
Net defined benefit liability
Deferred tax liabilities
Provisions
Other non-current liabilities(Millions of yen)
As ofJune 30, 2014

11,499125,655
5,891
4,021
5,648
6,487

18,051
110,997
8,204
561
6,387
11,154

159,201

155,354

27,09917,660
7,042
2,409
3,372
686

29,43324,31910,008
2,527
4,681
695

Total non-current liabilities

58,26871,663

Total liabilities

217,469

227,017

19,87818,73759,377(2,098)(1,750)19,87818,73758,784(1,990)(1,750)94,14493,659EquityShare capital
Share premium
Retained earnings
Other components of equity
Treasury shares
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

-8-

9,419

14,933

103,563

108,592

321,032

335,609(2) Condensed Quarterly Consolidated Statement of Comprehensive Income
Three months ended
June 30, 2013

(Millions of yen)Three months ended
June 30, 2014

Revenue
Cost of sales

217,360(200,960)

226,788(209,633)

Gross profit

16,40017,155

Other income and expense
Distribution, general and administrative expense
Profit (loss) from non-current assets
Other profit (loss)(14,023)(55)
182(15,586)(208)
271(13,896)(15,523)

Profit from operating activities

Total other income and expense

2,504

1,632

Finance income and finance costs
Interest received
Dividends received
Interest paid
Other finance income (costs)

2
217
(177)
(3)

15
202
(197)
(3)

39

17

(8)

35

Total finance income and finance costs
Share of profit (loss) of investments accounted for using equity
methodProfit before tax
Income tax expense
ProfitProfit attributable to owners of parent
Profit attributable to non-controlling interests

-9-

2,535

1,684

(1,117)

(741)

1,418

943

1,207
211

763
180

Three months ended
June 30, 2013
Other comprehensive income (net of tax effect)
Items that will not be transferred to profit or loss
Financial assets at FVTOCIOther comprehensive income of associates accounted for using
the equity method
Items that may be transferred to profit or loss
Exchange differences on translation of foreign operations
Cash flow hedges
Other comprehensive income of associates accounted for using
the equity method
Total other comprehensive income (net of tax effect)
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests(Millions of yen)Three months ended
June 30, 2014

(60)

303

1

0

(1)
–

(7)
(177)

37

(12)

(23)

107

1,395

1,050

1,184
211

870
180

(Yen)
Earnings per share (attributable to owners of parent)
Basic
DilutedNet sales(Note)

10.68
–

6.75
–

330,939(Millions of yen)
335,972

Net sales are presented in accordance with the Japanese accounting practices and represent the total sum of amountsof transactions that the Company and its consolidated subsidiaries conducted as a party to the contract andtransactions in which the Company and its consolidated subsidiaries were involved as an agent. This is the item
voluntarily disclosed by the Company for investors’ convenience and is not required to be disclosed under IFRSs.

- 10 -

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Three months ended
June 30, 2013

(Millions of yen)Three months ended
June 30, 2014

EquityShare capital
Balance at beginning of period

19,87819,878

Balance at end of period

19,87819,878

Share premium
Balance at beginning of period

18,737

18,737

Balance at end of period

18,737

18,73753,575
1,207
84
(904)

59,377763–(1,356)53,96258,784(1,527)(23)(84)(2,098)108–(1,634)(1,990)(1,750)(0)(1,750)(0)Retained earnings
Balance at beginning of period
Profit attributable to owners of parent
Transfer from other components of equity
Dividends paid to owners of parent
Balance at end of period
Other components of equity
Balance at beginning of period
Other comprehensive income attributable to owners of parent
Transfer to retained earnings
Balance at end of period
Treasury shares
Balance at beginning of period
Purchase and disposal of treasury shares
Balance at end of period
Total equity attributable to owners of parent
Non-controlling interests
Balance at beginning of period
Profit attributable to non-controlling interests
Other comprehensive income attributable to non-controllinginterests
Dividends paid to non-controlling interests
Changes due to additional acquisition and sale of interests in
subsidiaries
Balance at end of period
Total equity- 11 -(1,750)(1,750)89,19393,659

8,175
211

9,419
180

0

0

(175)

(215)

497

5,549

8,708

14,93397,901

108,592

(4) Condensed Quarterly Consolidated Statement of Cash Flows
Three months ended
June 30, 2013
Cash flows from (used in) operating activities
Profit before tax
Depreciation expense, etc.
Credit losses
Loss (profit) from non-current assets
Finance income and finance costs
Share of loss (profit) of investments accounted for using equity
methodDecrease (increase) in operating receivables
Decrease (increase) in inventories
Increase (decrease) in operating payables
Other, net
Interest and dividends received
Interest paid
Income taxes paid

(Millions of yen)Three months ended
June 30, 2014

2,535
2,572
115
55
(39)

1,684
2,344
(82)
208
(17)

8

(35)

25,770(4,461)(22,259)
1,580
288
(63)
(3,846)

31,1672,265(25,194)
2,115
208
(165)
(4,871)

2,255

9,627

(1)
934
(1,247)
(209)
112

(1)
157
(2,202)(809)
959(2,808)(4,160)

188

135

(115)
0

(335)
6

Net cash flows from (used in) investing activities(3,146)(6,250)Cash flows from (used in) financing activities
Capital raised through bonds and borrowings
Repayments of bonds and borrowings
Net increase (decrease) in current borrowings
Dividends paid to owners of parent
Dividends paid to non-controlling interests
Other, net

–
(702)
(564)
(904)
(175)
(0)

2,346
(754)
(1,525)(1,356)(215)(0)

Net cash flows from (used in) financing activities(2,345)(1,504)

Net cash flows from (used in) operating activities
Cash flows from (used in) investing activities
Purchase of investments
Proceeds from sales of investments
Purchase of subsidiaries, net of cash acquired
Loans made to other parties
Cash receipt from repayment of loans made to other parties
Payments for property, plant and equipment and investment
property
Proceeds from sales of property, plant and equipment andinvestment property
Purchase of intangible assets
Proceeds from sales of intangible assets

Increase (decrease) in cash and cash equivalents(3,236)

1,873

Cash and cash equivalents at beginning of period

18,062

14,25147(11)

14,873

16,113

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

(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern
For the three months ended June 30, 2014
No items to report.
(6) Segment Information
For the three months ended June 30, 2013
(Millions of yen)
Reportable segment
Consolidated

Home-Life

Car-Life

Power &
Utility

Energy
Trade

Total

Other

Total

26,149125,661

7,797

57,722

217,32931

217,360–

217,360

92

2,439

–

93

2,624

48

2,672

(2,672)–

26,241

128,100

7,797

57,815219,95379

220,032(2,672)

217,360

Gross profit

6,198

6,983

1,492

1,700

16,37327

16,400–16,400

Segment profit

940

98

887

369

2,294

15

2,309

226

2,535

27,211

134,988

8,297

160,233

330,729210

330,939–

330,939

Adjustment

Revenue
Revenue fromexternal customers
Intersegment
revenue
Total revenue

Net sales(Note)

Intersegment transactions have been conducted at ordinary transaction prices.
Segment profit was adjusted based on profit before tax in the condensed quarterly consolidated statement ofcomprehensive income.
The adjustment of ¥226 million to segment profit represents corporate profit (loss) not allocated to reportablesegments.
Net sales are an item voluntarily disclosed by the Company and represent the amount of sales in accordance withJapanese accounting practices.

For the three months ended June 30, 2014
(Millions of yen)
Reportable segment
Consolidated

Home-Life

Car-Life

Power &
Utility

Energy
Trade

Total

Other

Total

26,031

137,768

8,273

54,684

226,75632

226,788–

226,788

207

430

–

128

765

60

825

(825)

–

26,238138,198

8,273

54,812

227,52192

227,613(825)

226,788

Gross profit

5,874

8,187

1,651

1,412

17,12431

17,155–

17,155

Segment profit(loss)

544

(517)

1,207

180

1,414

8

1,422

262

1,684

27,359147,050

9,220

152,305

335,93438

335,972–

335,972

Adjustment

Revenue
Revenue fromexternal customers
Intersegment
revenue
Total revenue

Net sales(Note)

Intersegment transactions have been conducted at ordinary transaction prices.
Segment profit was adjusted based on profit before tax in the condensed quarterly consolidated statement ofcomprehensive income.
The adjustment of ¥262 million to segment profit represents corporate profit (loss) not allocated to reportablesegments.
Net sales are an item voluntarily disclosed by the Company and represent the amount of sales in accordance withJapanese accounting practices.

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Change in reportable segments
During the three months ended June 30, 2014, the Company has changed the name of “Total Home-Life
Division” to “Home-Life Division.” Segment information during the three months ended June 30, 2013
has been restated to reflect the change in reportable segments.
(7) Business Combinations
For the three months ended June 30, 2014
The material business combination during the three months ended June 30, 2014 was as follows:
Acquisition of shares of Osaka Car Life Group Co., Ltd.
Following a resolution at a Board of Directors’ meeting held on April 17, 2014 to acquire 200 issued
shares (51.95% of the total number of issued shares) of Osaka Car Life Group Co., Ltd. (“OCG”),
which owns subsidiaries including Nissan Osaka Sales Co., Ltd., thereby making it into a subsidiary,
the Company concluded a share transfer agreement with NMC 2007 Investment Limited Partnership asof the same date and acquired the shares for ¥6,000 million on May 27, 2014. The aim of thisacquisition of shares is for the Company’s Car-Life Division to extend its reach beyond sales of fuelamong others and the operation of Car-Life Stations by making a full-scale entry into the automobilerelated business. In this way, the move will contribute to the division’s aims of “strengthening the CarLife value chain” and “increasing added value across the entire value chain.” Organically combining
the business assets of OCG and the Company will further enhance the existing business base of theCompany, which primarily includes fuel sales. Moreover, the Company will also pursue synergies topropose new value for customers’ motoring lifestyles.
(1) The fair values of consideration paid, assets acquired and liabilities assumed, and non-controllinginterests as of the acquisition date are shown below:(Millions of yen)AmountItem
Fair value of consideration paid (Notes 1 and 2)
Fair value of non-controlling interests

6,000
5,549

Total

11,549Fair value of assets acquired and liabilities assumed
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets

17,18330,577(24,523)(11,688)
11,549(Notes) 1. The consideration paid was settled in cash.
2. There is no contingent consideration.

The fair values of assets acquired and liabilities assumed and non-controlling interests were
determined comprehensively taking into account the financial and assets conditions reviewed
through due diligence by a third party, assessment of corporate value by a financial advisor, etc.
Distribution, general and administrative expense of ¥97 million were recorded as acquisition-related
costs for the business combination.
(Note)

As of June 30, 2014, with regard to the amount of assets accepted and liabilities assumed as of the date of
the business combination, etc., since the contents of recognizable assets and liabilities as of businesscombination date are under close examination, tentative accounting has been performed.

- 14 -

(2) Fair value, etc. of acquired receivables
The total amount and fair value of operating receivables were ¥2,823 million. There are no impaired
operating receivables, and the contractual amount is expected to be fully collected.
(3) Performance from the acquisition date
Operating results of Osaka Car Life Group Co., Ltd. from the acquisition date, which are included in
the condensed quarterly consolidated statement of comprehensive income for the three months ended
June 30, 2014, are shown below:(Millions of yen)
Osaka Car Life Group Co., Ltd.

Item
Revenue
ProfitProfit attributable to owners of parent

8,650
108
56

(4) Pro forma information
Pro forma information (unaudited information) based on the assumption that the businesscombination of Osaka Car Life Group Co., Ltd. was carried out on April 1, 2014, the beginning of
the current fiscal year, is omitted, because the approximate amount of this impact is immaterial.

- 15 -