This document is an English translation of quarterly financial results report released on October 31, 2019 and written initiallyin Japanese.
The Japanese original should be considered as the primary version.

October 31, 2019

Consolidated Financial Results for the First Six Months of
the Fiscal Year Ending March 31, 2020
<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: +81-3-4233-8008

Scheduled date to file quarterly securities report: November 11, 2019
Scheduled date to commence dividend payments: December 4, 2019
Preparation of supplementary results briefing material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting: Yes (for institutional investors and analysts)(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2020
(from April 1, 2019 to September 30, 2019)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Profit fromoperatingactivities

RevenueSix months ended
September 30, 2019
September 30, 2018

Millionsof yen439,099475,378(7.6)

Millionsof yen
9,527

34.9

8,884

%

Basic earnings per
share attributable
to Itochu Enex’s
shareholders

Profit before tax

7.2

Millionsof yen
9,681

(5.7)

9,392

%

Net profit

Net profit
attributable to
Itochu Enex’s
shareholders

Comprehensive
income(4.8)

Millions%of yen6,292 (11.1)

37.2

3.1

Millionsof yen
6,468

(1.4)

Millionsof yen
5,184

13.4

6,562

26.7

5,447

%

%

Diluted earnings
per share
attributable to
Itochu Enex’s
shareholders

Yen
Yen
Six months ended
September 30, 2019
45.93–
September 30, 2018
48.25–
Reference: Total trading transactions
For the six months ended September 30, 2019: 548,143 million yen
For the six months ended September 30, 2018: 606,834 million yen
Note: “Total trading transactions” are presented in accordance with the Japanese accounting practices.

%

7,080

28.8

(2) Consolidated financial position
Total assets

As of
September 30, 2019
March 31, 2019

Total shareholders’equityTotal equity

Millions of yen

Millions of yen

409,579
374,373

Ratio of shareholders’equity to total assets

Millions of yen

146,388
144,566%

123,666
122,290

30.2
32.7

2. Cash dividends
Annual cash dividends per share
Second quarterend

First quarter-end
Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

–

20.00

–

22.00

42.00

–

21.00
–

21.00

42.00

Fiscal year ending
March 31, 2020
(Forecast)

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

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2020
(from April 1, 2019 to March 31, 2020)

Profit from operating
activities

Revenue

Millions of yen

Fiscal year ending
March 31, 2020

1,000,000% Millions of yen(0.7)

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(7.6)

19,200% Millions of yen(1.1)

Note: Revisions to the consolidated earnings forecasts most recently announced: None

11,800

%

2.1

Yen

104.54

* 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 September 30, 2019

116,881,106 shares

As of March 31, 2019

116,881,106 sharesb. Number of treasury stock at end of period
As of September 30, 2019

3,999,980 shares

As of March 31, 2019

4,002,462 sharesc. Average number of outstanding shares during period (cumulative from the beginning of the fiscal year)
For the six months ended September 30, 2019112,879,351 shares

For the six months ended September 30, 2018

112,878,931 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 Six Months, (3) Explanation ofConsolidated 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 Six 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 Six Months(1) Explanation of Operating Results
The Group has adopted IFRS 16 “Leases” (issued in January 2016; hereinafter, “IFRS 16”) from thefirst quarter ended June 30, 2019. For the details of the impact of the adoption of IFRS 16, pleaserefer to “2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto,(6) Changes in Accounting Policies.”
1)

Results of operations
During the six months ended September 30, 2019, the tone of the Japanese economy was one ofmoderate recovery. However, the outlook for the economy remained uncertain due to risks of aslowdown in the global economy, stemming from such issues as the impact on the global economy of
the United States-China trade issue trend and uncertainties in overseas economies.
In addition, Japan’s energy industry has been encountering drastically changing circumstances,
particularly with respect to consolidation of major oil companies, market entry by companies fromother industries as a result of Japan having fully liberalized retail power and city gas sales, alliances
forged across industry lines, and mounting worldwide awareness of climate change.
In this environment, the Itochu Enex Group announced its two-year medium-term business plan
“Moving 2020 Horizons” in April 2019, and has been advancing its business based on the following
basic policies:
Overview of medium-term business plan
1. Name of the plan:

Moving 2020 Horizons

2. Period:

Two years (FY2019 to FY2020)

3. Basic policy:

Promotion of Growth Strategies(1) Maintaining and deepening the revenue base: Pursue Group synergy
and further cultivate customer base.
(2) Making inroads overseas and in peripheral fields: Proactively invest inoverseas businesses and promote M&A of peripheral businesses.
(3) Creating new businesses: Promote environmental businesses and so on.
Evolution of the Organizational Base
(1) Strengthening Group management: Advance consolidated management
and construct effective governance management structures.
(2) Human resource strategies for growth: Promote diversity and nurture
global human resources.
(3) Promoting innovation: Pursue more efficient operations in existing
business and promote digital solutions.

4. Quantitative plan (FY2020):(1) Net profit attributable to Itochu Enex’s shareholders: ¥12.5 billion(2) ROE: 9.0% or above(3) Dividend payout ratio: 40% or above(4) Planned investment (2-year total): ¥60.0 billion-2-The operating results for the six months ended September 30, 2019 are as follows.
Revenue was ¥439,099 million (down 7.6% year on year), due mainly to the impact resulting from thedecrease in sales volumes and declining sales prices of domestic petroleum products in the Life &Industrial Energy Division.
Profit from operating activities was ¥9,527 million (up 7.2% year on year), a record-high profit, due
mainly to the Life & Industrial Energy Division having secured profit margins as a result of robust
sales in the retail market for petroleum products, and the increased profit in the sale of new cars in the
car dealer business and increased profit margins in the electric power business of the Power & Utility
Division.
Net profit attributable to Itochu Enex’s shareholders was ¥5,184 million (down 4.8% year on year),due mainly to a decrease in earnings of associates accounted for by the equity method as a result of
the impact of inventories, etc. in the Home-Life Division in relation to a fall in the LP gas importprice.
2)

Results of operations by segment
Results of operations by segment are as follows. Following the reorganization of the Group carriedout on April 1, 2019, the reportable segments have changed. As part of the reorganization, theMobility Life Department was included in the Life & Industrial Energy Division.
In line with this, the classification of reportable segments has been changed from the previous HomeLife Division, Life & Industrial Energy Division, Power & Utility Division and Mobility Life
Department to the Home-Life Division, Life & Industrial Energy Division and Power & Utility
Division from the first quarter ended June 30, 2019.
For that reason, the year-on-year comparisons have been recalculated based on the reportablesegments as they exist after the reorganization.
As announced in the news release “Changes in Officers and Reorganization” on September 18, 2019,
the Life & Industrial Energy Division was reorganized into two divisions: the Car-Life Division andIndustrial Business Division as of October 1, 2019.
Home-Life Division
In the Home-Life Division during the six months ended September 30, 2019, the number of customers
under direct LP gas supply contracts was approximately 551,000, roughly the same level as at the endof the previous fiscal year. The volume of LP gas direct sales was similar to that of the previous year,
but decreases in wholesale and auto gas volumes resulted in year-on-year declines overall. Althoughsales were robust, profits declined due to the impact of inventories in relation to a fall in the LP gas
import price.
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 9,000 for a total of approximately 91,000. Profits roseyear on year, reflecting the increase of customers.
In the industrial gas sales business and container inspection business, both sales volumes and profits
posted year-on-year declines due partly to the disappearance of special factors related to nitrogen sales
that buoyed results in the same period of the previous year, and partly to lower sales of carbonic acidgas caused by market conditions.
As a result of these activities, the operating results for the six months ended September 30, 2019 are as
follows.
Revenue was ¥36,616 million (down 9.0% year on year), due mainly to the declining sales price caused
by a fall in the import price and the decrease in the sales volume of LP gas.
Profit from operating activities was ¥618 million (down 46.3% year on year), due mainly to the impact
of inventories in relation to a fall in the import price of LP gas.

-3-

Net profit attributable to Itochu Enex’s shareholders was ¥224 million (down 71.2% year on year), due
mainly to a decrease in earnings of associates accounted for by the equity method as a result of the
impact of inventories, etc. in relation to a fall in the LP gas import price.
Life & Industrial Energy Division
Looking at the Life & Industrial Energy Division during the six months ended September 30, 2019, in
the Car-Life Stations (CS)*1 business, the number of the CS was 1,742, a decrease of 24 from the endof the previous fiscal period. Sales volumes of gasoline and diesel oil recorded year-on-year declines,
but that of kerosene exceeded previous-year levels due to the temperature at the beginning of the period
being lower than that of the same period in the previous fiscal year. Due to a robust retail market for
petroleum products, we were able to secure improved margins and profits increased year on year.
In the automotive business, our car dealer business subsidiary OSAKA CAR LIFE GROUP CO., LTD.
drove strong results amid robust sales not only of new cars, such as a new DAYZ model that was
launched at the end of March 2019, but also of the Note, Serena and other popular car models, leading
to year-on-year growth in both sales volume and profit.
As a result of these activities, the operating results for the six months ended September 30, 2019 are as
follows.
Revenue was ¥351,016 million (down 9.7% year on year), due mainly to a decrease in sales volume
and declining sales prices of domestic petroleum products.
Profit from operating activities was ¥5,685 million (up 23.7% year on year), due mainly to the secured
margins as a result of robust sales in the retail market for petroleum products, and the increased profit
in the sale of new cars in the car dealer business.
Net profit attributable to Itochu Enex’s shareholders was ¥3,160 million (up 9.8% year on year), due
mainly to the same reasons as the impacts on profit from operating activities described above.
*1 Car-Life Stations: Car-Life Stations are service stations offering multiple services provided by the Company.

Power & Utility Division
Looking at the Power & Utility Division during the six months ended September 30, 2019, in theelectric power business, retail electricity sales volumes decreased year on year due to a downturn inlarge, high-voltage power contracts for business users, and despite an increase in volume of lowvoltage power sales to households. Profit increased in comparison to the same period of the previous
fiscal year as a result of improvements in margins.
In the heat supply business*2, lower temperatures than in the same period of the previous fiscal year led
to year-on-year decreases in both demand for heat and profit.
As a result of these activities, the operating results for the six months ended September 30, 2019 are as
follows.
Revenue was ¥51,467 million (up 10.8% year on year), due mainly to an increase in electricity sales
volume for the wholesale electricity market in the electric power business.
Profit from operating activities was ¥2,913 million (up 11.4% year on year), due mainly to theincreased profit margins in the electric power business.
Net profit attributable to Itochu Enex’s shareholders was ¥1,659 million (up 17.6% year on year), due
mainly to the same reasons as the impacts on profit from operating activities described above.
*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.

-4-

(2) Explanation of Financial Position
Assets, liabilities and equity
Total assets amounted to ¥409,579 million as of September 30, 2019, an increase of ¥35,206 million fromMarch 31, 2019. This increase mainly reflected an increase in property, plant and equipment of ¥54,826
million with the application of IFRS 16. Total liabilities amounted to ¥263,191 million, an increase of¥33,384 million from March 31, 2019, mainly due to an increase in lease liabilities of ¥54,877 million
with the application of IFRS 16. Total equity totaled ¥146,388 million, an increase of ¥1,822 million fromMarch 31, 2019, due to factors including an increase of ¥5,184 million from net profit attributable to
Itochu Enex’s shareholders, a decrease of ¥2,905 million by payment of cash dividends and a decrease of¥1,535 million with the application of IFRS 16.
Cash flows
Cash and cash equivalents (net cash) totaled ¥21,385 million as of September 30, 2019, up ¥2,660 million
from March 31, 2019.
Cash flows from operating activities
Operating activities provided net cash of ¥7,138 million. Major items included profit before tax of ¥9,681
million, depreciation and amortization of ¥9,630 million, and an increase in funds required for trading of¥6,854 million. Net cash provided decreased ¥2,607 million year on year.
Cash flows from investing activities
Investing activities used net cash of ¥7,240 million. Major items included purchase of investments
accounted for by the equity method of ¥2,750 million, mainly in the Power & Utility Division, andacquisition of subsidiaries of ¥5,566 million. Net cash used increased ¥5,482 million year on year.
Cash flows from financing activities
Financing activities provided net cash of ¥2,765 million. Major items included net increase in short-termborrowings of ¥17,071 million, repayments of bonds and borrowings of ¥6,133 million and repayments oflease liabilities of ¥5,238 million. Net cash provided increased ¥8,501 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 26, 2019.

-5-

2.

Condensed Quarterly Consolidated Financial Statements and Significant Notes
Thereto(1) Condensed Quarterly Consolidated Statement of Financial Position
As ofMarch 31, 2019ASSETS
Current assets
Cash and cash equivalents
Trade receivables
Other current financial assets
Inventories
Income taxes receivable
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 of
September 30, 201918,725
106,165
36,03433,053
2,533
111
3,154

21,38588,48833,86928,387–158
2,246

199,775

174,533

29,441
4,186
11,29287,5999,819
521
20,0919,913
1,736

31,832
4,197
11,482
142,425
12,962521
19,992
9,777
1,858

174,598

235,046374,373409,579

As ofMarch 31, 2019
LIABILITIES AND EQUITYCurrent liabilities
Short-term bonds and borrowings
Trade payables
Lease liabilities
Other current financial liabilities
Income taxes payable
Advances from customers
Other current liabilities(Millions of yen)
As of
September 30, 201911,217
121,677
–
7,905
3,193
9,651
11,82026,02392,377
9,571
6,049
2,896
9,542
10,155

165,463

156,61322,893–23,531
9,936
2,287
5,462
235

18,99756,447
13,872
10,021
1,732
5,292
217

Total non-current liabilities

64,344

106,578

Total liabilities

Total current liabilities
Non-current liabilities
Non-current bonds and borrowings
Lease liabilities
Other non-current financial liabilities
Non-current liabilities for employee benefits
Deferred tax liabilities
Provisions
Other non-current liabilities

229,807

263,191

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

19,87818,922
86,769(1,406)(1,873)

19,87818,91988,321(1,582)(1,870)Total shareholders’ equity

122,290

123,666

22,276

22,722

144,566

146,388374,373409,579

Non-controlling interests
Total equity
Total liabilities and equity-7-(2) Condensed Quarterly Consolidated Statement of Comprehensive Income
Six months ended
September 30, 2018

(Millions of yen)Six months ended
September 30, 2019

Revenue
Cost of sales

475,378(434,045)

439,099(396,818)

Gross profit

41,33342,281Other income and expense
Selling, general and administrative expenses
Profit (loss) from tangible assets, intangible assets and goodwill
Other – net(32,524)(186)
261(33,044)69
221(32,449)(32,754)

Profit from operating activities

Total other income and expense

8,884

9,527

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

42
53
(438)
(5)

28
64
(574)
(27)

Total financial income and costs

(348)

(509)

Share of profit of investments accounted for by the equity method

856

663

9,392

9,681

(2,830)(3,213)

Net profit

6,562

6,468

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

5,447
1,115

5,184
1,284

6,562

6,468

Profit before tax
Income tax expense

Total

-8-

Six months ended
September 30, 2018
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)Six months ended
September 30, 2019

244

54

(1)

23

(11)
64

(2)
15

222

(266)

518

(176)

Comprehensive income

7,080

6,292

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

5,965
1,115

5,008
1,284

7,080

6,292

Total other comprehensive income, net of tax effect

Total

(Yen)
Earnings per share attributable to Itochu Enex’s shareholders
Basic
Diluted48.25–

Total trading transactions(Note)

606,834

45.93–(Millions of yen)
548,143

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
Six months ended September 30, 2018
(Millions of yen)
Shareholders’ equity

Balance at April 1, 2018

Commonstock

CapitalsurplusRetainedearnings

Other
componentsof equity

Treasury
stock

Total
shareholders’equityNoncontrollinginterests

Total equity

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

116,104

20,962137,066

5,447

1,115

6,562

518

518

0

518

518

5,965

1,115

7,080

(2,712)(459)(3,171)

–

(0)

(0)

Net profit

5,447

Other comprehensive
incomeComprehensive income

5,447Transactions with owners
Cash dividends(2,712)

Changes due to additional
acquisitions and sales ofinterests in subsidiaries
Transfer from othercomponents of equity toretained earnings(1)

1

Purchase and disposal oftreasury stock(0)
3

Share-based payments
Balance at September 30,
201819,87818,89583,086(626)(1,873)

–

–

(0)

(0)

3

3

119,360

21,618140,978

Six months ended September 30, 2019
(Millions of yen)
Shareholders’ equity

Balance at April 1, 2019

Commonstock

CapitalsurplusRetainedearnings

Other
componentsof equity

Treasury
stock

Total
shareholders’equityNoncontrollinginterests

Total equity

19,87818,922

86,769(1,406)(1,873)

122,290

22,276

144,566(1,146)(389)(1,535)

121,144

21,887143,031

5,184

1,284

6,468

(176)

(176)

(0)

(176)

(176)

5,008

1,284

6,292

Cumulative effect ofaccounting change
Restated balance(1,146)
19,87818,922

Net profit

85,623(1,406)(1,873)

5,184

Other comprehensive
incomeComprehensive income

5,184Transactions with owners
Cash dividends(2,486)(419)(2,905)

Changes due to additional
acquisitions and sales ofinterests in subsidiaries(2,486)

–

(30)

(30)

Transfer from othercomponents of equity toretained earnings

–

–

(0)

(0)

(0)

3

–

–

(1,870)123,666

Purchase and disposal oftreasury stock
Share-based payments
Balance at September 30,
2019

(3)
19,87818,91988,321- 10 -(1,582)

22,722

146,388

(4) Condensed Quarterly Consolidated Statement of Cash Flows(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2019

Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss (profit) from tangible assets, intangible assets and goodwill
Financial income and costs
Share of profit of investments accounted for by the equity method
Decrease in trade receivables
Decrease (increase) in inventories
Decrease in trade payables
Other – net
Dividends received
Interest received
Interest expense
Income taxes paid
Income taxes refund

9,392
5,018
186
348
(856)
5,306
(2,002)(194)(3,539)
268
28
(413)
(3,797)
–

9,681
9,630
(69)
509
(663)
17,7794,666(29,299)(4,214)
634
17
(572)
(3,494)
2,533

Net cash flows provided by operating activities

9,745

7,138

(1,486)(2,750)

–

4

(51)
35
–
(447)
311

(65)
60
(5,566)(359)
515(5,381)(5,082)

654

536

(448)
32
4,999
24

(633)
5
5,500
595

(1,758)(7,240)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
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 used in investing activities- 11 -

(Millions of yen)Six months ended
September 30, 2018
Cash flows from financing activities
Repayments of bonds and borrowings
Repayments of lease liabilities
Net increase (decrease) in short-term borrowings
Payments for additional acquisitions of interests in subsidiaries
from non-controlling interests
Cash dividends paid to Itochu Enex’s shareholders
Cash dividends paid to non-controlling interests
Purchase of treasury stock
Other

Six months ended
September 30, 2019

(1,858)–(706)(6,133)(5,238)17,071–(30)(2,712)
(459)
(0)
(1)

(2,486)
(419)
(0)
–

Net cash flows provided by (used in) financing activities(5,736)2,765

Net increase in cash and cash equivalents

2,251

2,663

Cash and cash equivalents at the beginning of the period

22,57318,725

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

26(3)

24,85021,385(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, 2019, the following standard has been applied.
Standard
IFRS 16

Title
LeasesDescription of new/amended
standards or interpretations
Amendments to accounting forlease contracts

Following the application of IFRS 16, for leases as lessee in cases where the contract is a lease or contains
a lease, right-of-use assets and lease liabilities are recorded in the condensed quarterly consolidated
statement of financial position on the commencement date of the lease.
Lease liabilities are measured using the present value of unpaid lease payments. Lease payments areallocated to financial costs and repayments of lease liabilities based on the effective interest method withfinancial costs recognized in the condensed quarterly consolidated statement of comprehensive income.
Right-of-use assets are measured at cost, with the acquisition cost on the commencement date of the lease
being determined, and the asset being depreciated thereafter using the straight-line method over the period
from the commencement date to the end of the asset’s useful life or of the lease term, whichever is theshorter.
Furthermore, the Group has not recognized right-of-use assets and lease liabilities for leases of intangible
assets, short-term leases with a lease term of less than 12 months, and leases for low-value assets. Lease
payments related to the above are recognized as expense on either a straight-line basis or some othersystematic basis to the total lease payments over the lease term.
In accordance with the transition under IFRS 16 upon its application, the Group has recognized thecumulative effect of initially applying IFRS 16 as an adjustment to the opening balance of retained
earnings for the first quarter ended June 30, 2019. The weighted average of the lessee’s incremental
borrowing rate applied to lease liabilities recognized in the condensed quarterly consolidated statement offinancial position as of the date of initial application of the standard is 0.5%.
A schedule reconciling the operating lease contracts disclosed as of the end of the previous fiscal year
under IAS 17 “Leases” (hereinafter, “IAS 17”) and the lease liabilities recognized in the condensed
quarterly consolidated statement of financial position as of the date of initial application of the standard isprovided below.

Noncancelable operating lease contracts disclosed (March 31, 2019)
Operating leases discounted using the incremental borrowing rate (April 1, 2019)
Finance lease obligations disclosed (March 31, 2019)
Cancelable operating lease contracts, etc.
Lease liabilities as of April 1, 2019

Amount(Millions of yen)
6,168
6,096
11,141
48,13265,369In applying IFRS 16, the Group has elected to apply the practical expedient provided in paragraph C3 of
IFRS 16 to grandfather the assessment of whether a contract contains a lease under IAS 17 and IFRIC 4“Determining whether an Arrangement contains a Lease.”
With regard to leases previously classified as operating leases under IAS 17, these were recognized asright-of-use assets and lease liabilities on the date of initial application of IFRS 16, with lease liabilities- 13 -

measured using the present value of unpaid lease payments at commencement, discounted by the lessee’s
incremental borrowing rate as of the initial application of the standard. In addition, with regard to leases
that were previously classified as finance leases under IAS 17, the book values of right-of-use assets andlease liabilities at the date of initial application of the standard are measured at the book value of leaseassets and lease obligations respectively on the day directly before the date of initial application, based on
IAS 17.
As a result, total assets increased by ¥52,692 million, lease liabilities increased by ¥54,228 million, while
retained earnings decreased by ¥1,146 million as of the beginning of the first quarter ended June 30, 2019.
In relation to the application of IFRS 16, the Group has elected to use the following practical expedients.
Initial direct costs are excluded from the measurement of right-of-use assets performed at the date of
the initial application of the standard.

When computing the lease term in cases where the contract contains an option to extend or cancel thelease, etc., a post-facto decision shall be taken.

(7) Segment Information
For the six months ended September 30, 2018
(Millions of yen)
Reportable segment
Home-Life
DivisionLife & Industrial
Energy Division

Power & Utility
Division

Total

Revenue from externalcustomers

40,248388,693

46,437

Intersegment revenue

46

1,385

40,294Gross profit
Profit from operating
activities
Profit before tax

Adjustment

Consolidated

475,378–475,378

3,165

4,596

(4,596)–

390,078

49,602479,974(4,596)475,378

10,374

26,102

4,857

41,333–

41,333

1,151

4,595

2,614

8,360

524

8,884

1,611

4,534

2,778

8,923

469

9,392

779

2,877

1,411

5,067

380

5,447

Total assets

60,968200,391

85,813

347,172

30,436377,608

Total tradingtransactions

44,959513,613

48,262606,834–

606,834

Revenue

Total revenue

Net profit attributable
to Itochu Enex’s
shareholders
Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥380 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥30,436 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 six months ended September 30, 2019
(Millions of yen)
Reportable segment
Home-Life
DivisionLife & Industrial
Energy Division

Power & Utility
Division

Total

36,616

351,016

51,467

Adjustment

Consolidated

439,099–

439,099

Revenue
Revenue from externalcustomers

74

3,387

1,526

4,987

(4,987)–

36,690354,403

52,993444,086(4,987)439,099

9,864

26,901

5,516

42,281–42,281

Profit from operating
activities

618

5,685

2,913

9,216

311

9,527

Profit before tax

695

5,499

3,254

9,448

233

9,681

Net profit attributable
to Itochu Enex’s
shareholders

224

3,160

1,659

5,043

141

5,184

Total assets

61,965207,046

107,979

376,990

32,589409,579

Total tradingtransactions

40,344454,856

52,943548,143–

548,143

Intersegment revenue
Total revenue
Gross profit

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥141 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥32,589 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, 2019
(Millions of yen)
Reportable segment

Total assets(Note)

Home-Life
DivisionLife & Industrial
Energy Division

Power & Utility
Division

Total

Adjustment

Consolidated

65,584

189,333

82,439337,356

37,017374,373

The adjustment of ¥37,017 million to total assets represents corporate assets not allocated to reportable segments.

Change in reportable segments
In the first quarter ended June 30, 2019, the now former Mobility Life Department was included in the Life
& Industrial Energy Division.
In line with this, the classification of reportable segments has been changed from the previous Home-Life
Division, Life & Industrial Energy Division, Power & Utility Division and Mobility Life Department to
the Home-Life Division, Life & Industrial Energy Division and Power & Utility Division from the firstquarter ended June 30, 2019.
Due to the change in segments, segment information for the first six months of the previous fiscal year andas of the end of the previous fiscal year (March 31, 2019) has been adjusted based on the classification ofreportable segments after the change.

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