This document is an abridged English translation of an earnings report released on April 30,
2014 and written initially in Japanese.
The Japanese original should be considered as the primary version.

FOR IMMEDIATE RELEASE
Itochu Enex Co., Ltd.
Representative: Kenji Okada, President
Stock code: 8133, Tokyo Stock Exchange, 1st Section
Contact: Naohiko Takamura
General Manager, Finance and Accounting Department
http://www.itcenex.com/english/
Tel: +81 3-6327-8010

Itochu Enex Reports Consolidated Earnings for the Fiscal Year
Ended March 31, 2014 (Under Japanese GAAP)Tokyo, Japan, April 30, 2014 -- Itochu Enex Co., Ltd. (TSE: 8133) announced net
sales of 1,506,606 million yen for the fiscal year ended March 31, 2014, and net
income of 7,402 million yen, or 65.52 yen per share, on a consolidated basis.
Results of Operations
In the fiscal year ended March 31, 2014, the Japanese economy gradually recovered,showing signs of improvements in corporate earnings and personal consumption thanks toeffects from the monetary easing policy of Bank of Japan and the governmental economic
and financial administration. However, with concerns about a fall in the global economy
resulting from U.S. rolling back quantitative easing, a slowdown in growth of emerging
economies, and increasing geopolitical risks, etc., the future has remained uncertain yet.
In the petroleum products distribution industry, with an increasing crude oil price andcontinuously weakening yen, the import price of crude oil remained high in Japan. As fordomestic sales volume, fuel oil significantly decreased overall from the corresponding
period a year earlier with sluggish sales of gasoline in and after summer and a large yearon-year decrease in sales of kerosene and heavy oil, while gas oil grew at a paceexceeding the previous fiscal year.
In this operating environment, the Itochu Enex Group is in the final year of a mediumterm business plan, Core & Synergy 2013. We have been optimizing logistics andexpanding domestic sales networks in the core petroleum product sales business and LP
gas sales business. We have also been building a system to fulfill various social needs forenergy, for example, by reinforcing our power generation capacity including renewableenergy in the new electric power business.
As a result of the above activities, consolidated net sales in the fiscal year ended March
31, 2014 increased 5.3% year on year to 1,506,606 million yen. Operating income
decreased 2.1% year on year to 13,439 million yen, and Ordinary income increased 7.5%
from a year earlier to 13,940 million yen. Net income rose 32.7% year on year to a recordhigh 7,402 million yen thanks to extraordinary gain on sale of investment securities.

-1-

Results of Operations by Segment
As business segments have been added and changed, as stated in segment information,
year-on-year comparisons are based on the segments after the change.
Energy Trade Division
The Energy Trade Division earned operating income of 2,706 million yen (down 28.6%
year on year) on net sales of 730,504 million yen (down 0.4% year on year) in the fiscal
year ended March 31, 2014.
With the continuously declining tendency of demands for petroleum products, thedomestic petroleum product market has continued sluggish despite a move to reduce
production of petroleum products. Consequently, the business environment remained harsh.
Under such circumstances, we enhanced an asphalt sales system by developing asphalt
terminals and building company-owned vessels to carry asphalt, deployed nine dedicatedfuel supply ships in Japan in marine fuel sales business for domestic operation, andexpanded 17 AdBlue supply bases nationwide in response to the increasing popularizationof urea SCR vehicles1. Like this, we optimized our distribution functions in each business.
However, with effects of the hostile business environment, sales volume of otherpetroleum products than asphalt considerably decreased from a year earlier. In order toflexibly respond to diversifying needs of clients and changes in domestic and overseas
market conditions, we will further improve distribution functions.
Note 1 Urea SCR vehicle: Urea SCR vehicle purifies NOx using urea solution (AdBlue) andSelective Catalytic Reduction to reduce NOx in exhaust gas from diesel engines.

Car-Life Division
The Car-Life Division earned operating income of 3,017 million yen (down 13.6% year onyear) on net sales of 612,258 million yen (up 9.0% year on year), in the fiscal year ended
March 31, 2014.
Demands for gasoline declined with prices of domestic petroleum products remaining
high due to impacts from high crude oil prices and weak yen, as well as increased
popularization of fuel-efficient cars. In addition, demands for kerosene notably fell in winter.
In the Group companies, however, sales volume of gasoline and gas oil, etc. increased
from a year earlier thanks to promotion of new large-scale affiliates. Meanwhile, profits fell
year on year with large impacts of profit margin compressed by the deterioration in retailmarket conditions in the 4th quarter, despite efforts to reduce costs at each base, andexpand Car-Life profits2 in the Group companies.
In the retail strategy, we have strived to improve profitability of Car-Life stations3,
continuously promoting support for operation of the Stations by sharing of successful
examples through "ENEX ACT Program4", which has been developed for the purpose ofstrengthening competitiveness of Car-Life Stations of the Company.
In the automobile-related business, mainly Enexauto Co., Ltd., a Group company,
contributed to an improvement in profitability of Car-Life Stations of the Company, forexample, by promoting the car hire business "Itsumo Rent-a-Car", the used vehicle tradingbusiness "Itsumo Car Net", and a system to unify management of customers "Car BusinessSupport".
As part of activities to create a brand image of the entire Enex Group, we worked onchanging design of uniform used at Car-Life Stations, adopting eco-friendly ethicalmaterials5 with an eye to calling up new image of Car-Life Stations.

-2-The number of Car-Life Stations of the Company at the end of the fiscal year ended
March 31, 2014 was 2,118; a net decrease of 64 stations from the end of the previous fiscal
year. During the fiscal year under review, impacted by the decrease in the number ofdomestic gas stations, we lost 131 stations through disaffiliation of unprofitable anddecrepit stations, etc. while adding 67 newly affiliated station.

Note 2 Car-Life Profits: Car-Life profits include profits from car wash, lube oil, tires, carinspection, plating, sales of used cars, and rent-a-car, etc.), excluding sales of fueloil.
Note 3 Car-Life Stations: Car-Life Stations are full-service automobile service stations
affiliated with Itochu Enex.
Note 4 ENEX ACT Program: Under this program, we work closely with Car-Life Station
operators to raise their competitiveness by analyzing their station operations andcompetitive climate, conducting group training, and engaging in other activities.
Note 5 Ethical materials: Ethical materials are produced with ecologically and sociallyfriendly materials and processes (organic cotton).

Total Home-Life Division
The Total Home-Life Division earned operating income of 4,780 million yen (up 18.6%
year on year) on net sales of 126,846 million yen (up 15.8% year on year).
The number of direct sales for home and sales volume of LP gas almost leveled off froma year earlier, as a result of promoting the area strategy at Group companies. While theimport price of LP gas hovered at high level with effects from rising crude oil prices andweak yen, appropriate profit margin could be ensured with gas rate adjustment system
which has been introduced for some time.
ing Energy Corporation, which was invested and established in April 2013 jointly by ing
Corporation and Itochu Enex Home-Life Kanto Co., Ltd., a Group company, contributed toboosting revenues in the fiscal year under review by expanding the size of business andenhancing competitiveness in Kanto area.
Meanwhile, we strongly pushed ahead with sales of new energy-related equipment suchas a solar power generation system and ENEFARM residential fuel cells, as well as salesof high-performance and high-efficiency gas equipment, such as a glass-topped stove and"Ecojozu." As a result, sales volume significantly increased year on year.
At each "E-koto Shop", a community information station, we held various communitybased events to create new opportunities of communication with customers.
As for social contribution activities, we have continued to implement "the Itadakimasu
Support Manifesto for Kids" and "the Honoo no Chikara Support Manifesto for Kids" atkindergartens and nursery schools across Japan for the purpose of educating children
about "importance of diet" and "importance of fire".

Power & Utility Division
The Power & Utility Division earned operating income of 3,059 million yen (up 35.7%
year on year) on net sales of 36,438 million yen (up 42.3% year on year).
In the electricity and steam supply business6, the amount of electricity sold increased
from a year earlier, with contributions from the reinforcement of thermal power generation
facilities in the previous fiscal year, as well as JEN Konbumori Wind Farm Co., Ltd. in-3-

Hokkaido, which we acquired in the previous year. Profits largely grew year on year thanks
to prices remaining high in the wholesale power market and the wind power generation
business using the renewable energy feed-in tariff system.
Under such circumstances, in order to further promote the electric power business, Hofu
Energy Service Co., Ltd., a Group company in Yamaguchi prefecture, is additionallybuilding a coal thermal power generation facility, which is scheduled to start operation in
April 2015.
Tainai Wind Farm Co., Ltd. in Niigata prefecture, which became a Group company inDecember 2013, is constructing wind power generation facilities, which is scheduled tostart operation in September 2014.
In the heat supply business7 developed mainly by Tokyo Toshi Service Company, aGroup company, the amount of heat sold slightly rose year on year, as demand for heat for
air cooling increased due to higher temperature than usual in summer.
In the LNG sales business, sales volume increased year on year with the increased
number of new clients, as well as a gradual recovery of operating rate of manufacturing
plants.
Note 6 Electricity and steam supply business: Electricity and steam supply businesssupplies electricity and steam generated at time of power generation.
Note 7 Heat supply business: Heat supply business supplies cold and hot water for air
conditioning to office buildings and other multiple buildings from a heat source plantusing pipes.

Consolidated Earnings Forecasts
Domestic economy is expected to continue to gradually recover thanks to effects ofgovernmental economic measures. However, its future will remain unclear as there aremany concerns which have adverse effects on economic activities, for example, aconsumption tax hike influencing consuming activities, and a slowdown in the global
economies including emerging economies. The petroleum products distribution industry is
likewise expected to continuously face a challenging environment marked by declining
domestic demand mainly due to popularization of fuel-efficient vehicles and volatility inexchange rate and crude oil prices.
Under such business conditions, the Group will provide optimal energy to each customer,
as a new type of energy company handling petroleum, gas, and electricity, etc. We will aim
to achieve expected numerical values of consolidated earnings, realizing sustainablegrowth while developing and expanding house and car-related businesses centering onenergy.
We decided to apply International Financial Reporting Standards (IFRS) on a voluntarybasis, commencing with consolidated financial statements in annual securities report for the
fiscal year ended March 31, 2014. Accordingly, please note that consolidated earnings
forecasts for the fiscal year ending March 31, 2015 were formulated in accordance with
IFRS, instead of conventional Japanese accounting standards.

Financial Condition
Total assets amounted to 330,291 million yen at March 31, 2014, an increase of 6,544
million yen from March 31, 2013. This primarily reflected an increase in fixed assets in linewith investment for reinforcing power generation facilities in the electricity and steam supply
business.

-4-

Liabilities amounted to 217,610 million yen, an increase of 393 million yen from March 31,
2013, with a decrease in interest-bearing debt resulting from redemption of corporate
bonds, an increase in trade notes and accounts payable, and other factors.
Net assets totaled 112,681 million yen, an increase of 6,151 million yen from March 31,
2013, due to factors including increases in retained earnings and minority interests.
We consequently ended the fiscal year with a shareholders' equity ratio of 31.2%.

Cash flows
Cash and cash equivalents (net cash) totaled 14,089 million yen at March 31, 2014, a
decrease of 3,790 million yen from March 31, 2013, due to investing activities into new
growing fields (the electric power business and the overseas business) and redemption of
corporate bonds, etc.

Cash flows from operating activities
Operating activities earned net cash of 16,050 million yen. This was deprived mainly fromincome including income before income taxes and minority interests of 14,157 million yen
and depreciation and amortization of 8,537 million yen, and income tax paid of 6,259 million
yen.

Cash flows from investing activities
Investing activities used net cash of 12,606 million yen. The main items were expenses
including 1,476 million yen for purchase of investment in subsidiaries and 15,104 million
yen for purchases of property, plant and equipment, and proceeds from sales of investment
securities of 4,385 million yen.

Cash flows from financing activities
Financing activities used net cash of 7,308 million yen. The main items were 5,000 million
yen for redemption of corporate bonds and 1,807 million yen for dividends paid.

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

2011
33.1
19.5
2.4
17.5

2012
30.6
18.1
－
－

2013
30.3
19.4
1.9
24.6

2014
31.2
20.3
2.4
20.1

Shareholders’ equity ratio: Shareholders equity / Total assets
Shareholders’ equity ratio 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
1. All of the above ratios were calculated using consolidated financial statement data.
2. Market capitalization was calculated by multiplying the fiscal-year-end closing shareprice by the number of shares outstanding at fiscal year-end (net of treasury stock).
3. “Cash flow” is “Cash provided by (used in) operating activities” on the Consolidated
Statements of Cash Flows.
4. Interest-bearing debt is all debt, of the debt carried on the consolidated balance sheet,-5-

on which interest is payable.
5. Ratio of cash flow to interest-bearing debt and Interest-coverage ratio in the fiscal year
ended March 31, 2012 were not stated as cash flow from operating activities is negative.
Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2014
and ending March 31, 2015
In terms of shareholder returns, we aim to maintain a consolidated dividend payout ratioof 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, 2014, we plan to pay a year-end dividend of 12 yen
per share. For the fiscal year ending March 31, 2015, we plan to pay annual dividends of
22 yen per share (including an interim dividend of 11 yen per share).
With respect to internally retained funds, our basic policy is to use such funds to invest in
our business to strengthen our operating foundation and further increase earnings.

-6-

Financial Statements—Consolidated(1) Consolidated Balance Sheets
Millions of yen

AssetsCurrent assets
Cash and cash equivalents
Trade notes and accounts receivable
Merchandise and finished products
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Vessel
Accumulated depreciation
Vessel, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Net, property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-7-

March 31, 2013
AmountMarch 31, 2014
Amount17,880139,140
17,044
1,963
17,267(218)
193,077

14,089144,688
17,551
2,121
15,774(969)
193,257

57,725(33,203)
24,52153,022(28,209)
24,812488(11)477
34,7535,435(3,026)
2,408
588
6,206
(4,399)1,806
89,36857,072(32,185)
24,88652,587(28,351)
24,235
1,180
(114)
1,066
34,0985,820(3,887)
1,933
7,607
7,129
(4,404)
2,725
96,5533,209
8,164
11,373

3,173
8,263
11,437

15,269964
2,816
11,380(503)
29,926130,669
323,747

13,497804
3,584
11,613(456)
29,043137,034
330,291

Millions of yen

Liabilities
Current liabilities
Trade notes and accounts payable
Short-term borrowings
Corporate bonds due within one year
Lease obligations
Income taxes payable
Accrued bonuses for employees
Accrued bonuses for directors and corporate
auditors
Other current liabilities
Total current liabilities
Long-term liabilities
Corporate bonds
Long-term debt
Lease obligations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Liabilities for retirement benefits
Net defined benefit liability
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income(loss)
Unrealized gains (losses) on available-for-salesecurities
Deferred hedge gains (losses)
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income(loss)
Minority interests
Total net assets
Total liabilities and net assets-8-

March 31, 2013
AmountMarch 31, 2014
Amount119,006
9,594
5,000
1,132
3,932
3,115

123,784
11,340
－
906
3,946
3,105

404

364

20,047
162,233

15,853
159,301

20,000
6,246
2,141
1,809
2,438
6,404
－
2,688
13,25354,983
217,216

20,000
7,173
1,766
2,091
2,358
－
6,940
3,055
14,92258,308217,610

19,877
18,736
69,106(1,749)105,970

19,877
18,73674,654(1,750)111,518

(104)

(404)

(5)
(7,778)71－(309)(7,731)130(199)(7,815)(8,514)

8,375
106,530
323,747

9,677
112,681330,291

(2) Consolidated Statements of Income
Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income
Interest income
Dividend income
Purchase discounts
Equity in income of unconsolidated subsidiaries andassociates
Other
Total other income
Other expense
Interest expense
Sales discounts
Corporate bonds issuance cost
Loss on foreign currency translation
Equity in loss of unconsolidated subsidiaries andassociates
Other
Total other expense
Ordinary income
Extraordinary gains
Gain on sales of fixed assets
Gain on sales of investment securities
Compensation income for expropriation
Other
Total extraordinary gains
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on sales of investment securities
Loss on devaluation of investment securities
Loss on impairment of long-lived assets
Head office relocation expense
Voluntary product recall related expense
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Current
Deferred
Total income taxes
Income before minority interests
Minority interests
Net income-9-Year ended
March 31, 2013

Year ended
March 31, 2014

AmountAmount1,430,745
1,360,691
70,05456,32813,726

1,506,606
1,435,151
71,45458,015
13,439

26
255
323

22
247
285

－

527

925
1,531

881
1,964

548
230
84
1,137

533
249
－
281

28

－

264
2,294
12,963398
1,463
13,940

274
12
130
－
417

661
2,641
－
2
3,305

1,125
2
11
712
－
－
31
1,882
11,497

787
－
1
1,582
476
232
7
3,087
14,157

5,479
(474)
5,004
6,493
916
5,576

6,276
(525)
5,750
8,407
1,004
7,402

Consolidated Statements of Comprehensive Income
Millions of yen

Income before minority interests
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests- 10 -

Year ended
March 31, 2013

Year ended
March 31, 2014

AmountAmount

6,493

8,407

925
－
－

(301)
(312)
20

51

46

977
7,470

(546)
7,861

6,554
916

6,856
1,004

(3) Consolidated Statements of Changes in Net Assets
Year ended March 31, 2013 (April 1, 2012－March 31, 2013)
Millions of yen
Shareholders' equity
Common stock
Balance at beginningof year
Changes during theperiodCash dividends paid
Net income
Purchase of treasury
stocks
Reversal of revaluation
reserve for land
Net increase(decrease) during theperiod, except foritems undershareholders' equity
Total changes during
the period
Balance at end of year

Capital surplus

19,877Retained earnings

18,736(1,749)Total shareholders'equity102,050(0)(1,807)5,576(0)Treasury stock

65,186(1,807)
5,576

150

150

－
－

－

3,919

(0)

3,919

19,877

18,736

69,106(1,749)105,970

Accumulated other comprehensive income (loss)
Unrealized
gains
Deferred(losses) onhedge gains
available-for(losses)
sale
securities
Balance at beginningof year
Changes during theperiodCash dividends paid
Net income
Purchase of treasury
stocks
Reversal of revaluation
reserve for land
Net increase(decrease) during theperiod, except foritems undershareholders' equity
Total changes during
the period
Balance at end of year

(1,030)(3)

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments(7,627)19

Total
Remeasure accumulated
ments ofother
definedcomprehensi
benefit plans ve income(loss)

－

(150)

926

(1)

52

926

(1)

(150)

52

(104)

(5)

(7,778)71- 11 -(8,641)

Minority
interests

2,681

Total net
assets

96,090－－(1,807)
5,576

－

(0)

(150)

－

977

5,693

6,670

－

826

5,693

10,439－(7,815)

8,375

106,530

Year ended March 31, 2014 (April 1, 2013－March 31, 2014)
Millions of yen
Shareholders' equity
Common stock
Balance at beginningof year
Changes during theperiodCash dividends paid
Net income
Purchase of treasury
stocks
Reversal of revaluation
reserve for land
Net increase(decrease) during theperiod, except foritems undershareholders' equity
Total changes during
the period
Balance at end of year

Capital surplus

19,877Retained earnings

18,736

Total shareholders'equityTreasury stock

69,106(1,749)105,970(1,807)
7,402(1,807)
7,402
(0)

(0)

(46)

(46)

－

－

－

5,548

(0)

5,547

19,877

18,73674,654(1,750)111,518

Accumulated other comprehensive income (loss)
Unrealized
gains
Deferred(losses) onhedge gains
available-for(losses)
sale
securities
Balance at beginningof year
Changes during theperiodCash dividends paid
Net income
Purchase of treasury
stocks
Reversal of revaluation
reserve for land
Net increase(decrease) during theperiod, except foritems undershareholders' equity
Total changes during
the period
Balance at end of year

(104)

(5)

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments(7,778)71

Total
Remeasure accumulated
ments ofother
definedcomprehensi
benefit plans ve income(loss)

－

46

(300)

(304)

(300)

(304)

(404)

(309)

(7,815)

Minority
interests

8,375

Total net
assets106,530－－(1,807)
7,402

－

(0)

46

－

58

(199)

(745)

1,302

556

46

58

(199)

(698)

1,302

6,151

(7,731)

130

(199)

(8,514)

9,677

112,681- 12 -

(4) Consolidated Statements of Cash Flows
Millions of yen

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Loss on impairment of long-lived assets
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in liabilities for retirement benefits
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expense
Corporate bonds issuance cost
(Gain) loss on foreign currency translation
Equity in (income) loss of unconsolidated subsidiaries and associatedcompanies(Gain) loss on sales and disposal of fixed assets(Gain) loss on sales of investment securities(Gain) loss on revaluation of investment securities
Compensation income for expropriation(Increase) decrease in trade notes and accounts receivable(Increase) decrease in inventories
Increase (decrease) in trade notes and accounts payable(Increase) decrease in other assets
Increase (decrease) in other liabilities
Other
Sub totalInterest and dividend income received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of marketable securities
Proceeds from redemption of securities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Proceeds from sales of intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Purchase of investment in subsidiaries
Proceeds from liquidation of associated companies
Payments for loans
Collection of loans
Proceeds from compensation for expropriation
Other
Net cash provided by (used in) investing activities- 13 -

Year ended
March 31, 2013

Year ended
March 31, 2014

AmountAmount11,497
6,773
712
1,717
83
(12)

－
(282)
548
84
966

14,157
8,537
1,582
947
825
(6,404)
6,481
(269)
533

－
623

28

(527)

850
(10)
11
(130)
12,991(2,145)(10,515)(2,118)4,787
3125,870364(647)(3,981)
21,606126(2,641)1(1,206)
1,500(9,183)
1,389(2,300)51(105)
82(9,088)312(8,071)
1,526
251
(205)
(25,047)(913)
711(15,104)
1,704(1,385)
114
(3)
4,385
(1,476)－(4,890)
(164)
4,441
706
(1,653)
4
22,417440(547)(6,259)16,050－(1,958)
1,190

－
130
(12,606)

Millions of yen

Cash flows from financing activities
Increase (decrease) in short-term borrowings - net
Net increase (decrease) in commercial papers
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of corporate bonds
Redemption of corporate bonds
Repayments of lease obligations
Repurchases of treasury stock
Dividends paid
Dividends paid to minority shareholders of consolidated subsidiaries
Other
Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of the period
Cash and cash equivalents, end of the period- 14 -

Year ended
March 31, 2013

Year ended
March 31, 2014

AmountAmount(544)(4,000)6,326(7,633)
14,915－(1,187)(0)(1,807)
(132)
30
5,964

(0)
－
992
(129)
－
(5,000)(1,186)(0)(1,807)(174)－(7,308)

43

73

2,567
15,312
17,880(3,790)17,88014,089

Notes to Consolidated Financial Statements
a. Segment Information
1. Overview of reportable segments
The Company's reportable segments are components of the Company about which
separate financial information is available. These segments are subject to periodic
examinations to enable the Company's board of directors to decide how to allocate
resources and assess performance.
The Company is organized into business divisions. Each business division conducts
business based on strategies for each category of target customers and markets.
In the fiscal year ended March 31, 2014, positioning the power and utility business andthe overseas business as priority fields while expanding and enhancing the existing core
petroleum and gas-related business, we implemented the Company-wide organizational
reform, in order to improve speed, flexibility, and governance in each field.
According to the reform, we integrated the Industrial Material Division and the Global
Trade Division into the Energy Trade Division, as well as the Home-Life Division and the
Total-Life Division into the Total Home-Life Division. We also established the new Power& Utility Division. Businesses including the electricity and steam supply business and theheat supply business which had been previously conducted by the Industrial Material
Division were incorporated into this segment.
Consequently, there are four reportable segments corresponding to its business divisions,
namely the Energy Trade Division, the Car-Life Division, the Total Home-Life Division,and the Power & Utility Division.
Energy Trade:Industrial energy and material supplies; sales of asphalt, cement, high-grade urea
aqueous solution, and other materials; import and export of petroleum products;
regulation of supply of and demand for petroleum products in Japan; chartering andoperation of tankers; sales of marine fuels and lubricating oil; and logistics services for
petroleum storage tanks and facilities.
Car-Life:
Consumer sales and services, mainly at Car-Life Stations, including gasoline, light
diesel oil, kerosene, heavy fuel oil, grease, car-related products, car inspections,maintenance, and car rental services.
Total Home-Life:
Sales and services of LP gas, kerosene, gas equipment (combustion equipment,
kitchen equipment, air-conditioning equipment, and household equipment, etc.), andnew energy equipment (solar power generation systems, fuel cells, etc.)
Power & Utility:
Generation and sales of electricity, steam, and other materials; heat supply service for
air conditioning; and sales of LNG (Liquefied Natural Gas)
The segment information for the fiscal year ended March 31, 2013 was stated, classified
into the segments used in the fiscal year under review.
2. Calculation method for net sales, income/loss, assets, liabilities, and other items byreportable segment
The accounting method for reportable segments is generally identical to statements in “Basisof presenting the consolidated financial statements”.
“Reportable segment income (loss)” is based on operating income.
“Intersegment sales or transfers” is based on market price.

- 15 -

3. Net sales, income/loss, assets, liabilities, and other items by reportable segment
Year ended March 31, 2013 (April 1, 2012－March 31, 2013)
Millions of yen

I. Sales(1) Sales to customers(2) Intersegment sales
or transfers
Total

Adjustments*2 *3

Amounts
on theconsolidated
statements
of income*4

1,430,745－

1,430,745

1,898

41,032(41,032)－
1,430,745

EnergyTrade

Reportable segment
Total
Power &
Car-Life Home-Life
Utility

Total

Other
*1

733,176

561,448

109,549

25,6101,429,786

959

26,09812,880155－

39,134

Total

759,275

574,328

109,705

25,6101,468,920

2,858

1,471,778(41,032)

Segment income (loss)

3,787

3,491

4,031

2,254

13,56455

13,620106

13,726

Segment assets

99,198

108,575

57,85638,807

304,437666

305,103

18,643323,747

326

2,458

1,289

2,080

6,155

3

6,158

614

6,773

36

831

796

142

1,807

－

1,807

(89)

1,717

4

25

367

(409)

(11)

－

(11)

(17)

(28)

104

160

4,817

1,029

6,111

－

6,111

453

6,564

1,167

4,000

2,888

2,841

10,8988

10,906576

11,483

Other items
Depreciation/amortization
Amortization of
goodwill
Equity in income ofunconsolidated
subsidiaries andassociates (loss)
Investment inequity-method
associates
Increase inproperty, plantand equipment
and intangible
assets

Notes:

1. “Other” comprises businesses, such as investment business and back-office outsourcing
services that are not included in reportable segments.
2. 106 million yen adjustment for segment income is 106 million yen of unallocated corporate
income. The main component of the unallocated corporate income is income and loss thatare not attributable to reportable segments.
3. 18,643 million yen adjustment for segment assets is 18,643 million yen of unallocatedcorporate assets. The main component of these unallocated corporate assets is cash andcash equivalents that are not attributable to reportable segments.
4. Segment income adjustments are based on operating income reported on the consolidated
statements of income for the corresponding period.

- 16 -

Year ended March 31, 2014 (April 1, 2013－March 31, 2014)
Millions of yen

I. Sales(1) Sales to customers(2) Intersegment sales
or transfers
Total

Adjustments*2 *3

Amounts
on theconsolidated
statements
of income*4

1,506,606－

1,506,606

1,537

42,917(42,917)－
1,506,606

EnergyTrade

Reportable segment
Total
Power &
Car-Life Home-Life
Utility

Total

Other
*1

730,504

612,258

126,846

36,4381,506,048

558

27,725

12,997656－

41,379Total

758,230

625,256

127,50336,4381,547,428

2,096

1,549,524(42,917)

Segment income (loss)

2,706

3,017

4,780

3,059

13,562

4

13,567(128)

13,439Segment assets

96,852

107,462

64,57144,742

313,628554

314,183

16,108330,291

618

2,599

1,598

2,983

7,800

3

7,804

733

8,537

36

514

286

142

980

－

980

(32)

947

8

16

537

(14)

548

－

548

(20)

527

100

181

5,194

548

6,024

－

6,024

452

6,477

955

2,975

2,864

8,807

15,603－

15,603886

16,489Other items
Depreciation/amortization
Amortization of
goodwill
Equity in income ofunconsolidated
subsidiaries andassociates (loss)
Investment inequity-method
associates
Increase inproperty, plantand equipment
and intangible
assets

Notes:

1. “Other” comprises businesses, such as investment business and back-office outsourcing
services that are not included in reportable segments.
2. The negative 128 million yen adjustment for segment income is 128 million yen of unallocatedcorporate expenses. The main component of these unallocated corporate expenses isincome and loss that are not attributable to reportable segments.
3. 16,108 million yen adjustment for segment assets is 16,108 million yen of unallocatedcorporate assets. The main component of these unallocated corporate assets is cash andcash equivalents that are not attributable to reportable segments.
4. Segment income adjustments are based on operating income reported on the consolidated
statements of income for the corresponding period.

b. Related Information
Year ended March 31, 2013 (April 1, 2012－March 31, 2013)
1. Information by product and service
Information by product and service is omitted here, as customer sales of products/services
belonging to a single category exceed 90% of total net sales in the consolidated statements ofincome.
2. Information by geographic area
1) Net sales
Disclosure is omitted here as customer sales in Japan exceed 90% of total net sales in the
consolidated statements of income.

- 17 -

2) Property, plant and equipment
Not applicable, as the Company does not own property, plant and equipment located otherthan in Japan.
3. Information by major customer
Disclosure is omitted here as no outside customer accounts for more than 10% of total net
sales in the consolidated statements of income.
Year ended March 31, 2014 (April 1, 2013－March 31, 2014)
1. Information by product and service
Information by product and service is omitted here, as customer sales of products/services
belonging to a single category exceed 90% of total net sales in the consolidated statements ofincome.
2. Information by geographic area
1) Net sales
Disclosure is omitted here as customer sales in Japan exceed 90% of total net sales in the
consolidated statements of income.
2) Property, plant and equipment
Not applicable, as the Company does not own property, plant and equipment located otherthan in Japan.
3. Information by major customer
Disclosure is omitted here as no outside customer accounts for more than 10% of total net
sales in the consolidated statements of income.
c. Impairment loss on fixed assets by reportable segment
Year ended March 31, 2013 (April 1, 2012－March 31, 2013)
Millions of yen

Impairment loss

EnergyTrade

CarLife

Total
HomeLife

Power&
Utility

Other

265

71

56

－

－

Corporate/Elimination

Total

319

712

Year ended March 31, 2014 (April 1, 2013－March 31, 2014)
Millions of yen

Impairment loss

EnergyTrade

CarLife

Total
HomeLife

Power&
Utility

Other

79

946

83

282

－

- 18 -

Corporate/Elimination
190

Total
1,582

d. Amortized amount and unamortized balance of goodwill
Year ended March 31, 2013 (April 1, 2012－March 31, 2013)
Millions of yen
EnergyTrade

CarLife

Total
HomeLife

Power&
Utility

Other

Amortized
amount

36

842

796

142

－

(89)

1,727

Unamortizedbalance at end of
the period

44

904

1,886

427

－

(32)

3,229

Corporate/Elimination

Total

Amortized amount and unamortized balance accrued from business combinations ofsubsidiaries carried out before April 1, 2010 are as follows.
Millions of yen
EnergyTrade

CarLife

Total
HomeLife

Power&
Utility

Other

Amortized
amount

－

10

－

－

－

－

10

Unamortizedbalance at end of
the period

－

20

－

－

－

－

20

Corporate/Elimination

Total

Year ended March 31, 2014 (April 1, 2013－March 31, 2014)
Millions of yen
EnergyTrade

CarLife

Total
HomeLife

Power&
Utility

Other

Amortized
amount

36

524

286

142

－

(32)

957

Unamortizedbalance at end of
the period

7

629

2,261

284

－

－

3,183

Corporate/Elimination

Total

Amortized amount and unamortized balance accrued from business combinations ofsubsidiaries carried out before April 1, 2010 are as follows.
Millions of yen
EnergyTrade

CarLife

Total
HomeLife

Power&
Utility

Other

Amortized
amount

－

10

－

－

－

－

10

Unamortizedbalance at end of
the period

－

10

－

－

－

－

10

e. Gain on negative goodwill by reportable segment
Not applicable- 19 -

Corporate/Elimination

Total

Material subsequent events
Conclusion of share transfer agreement regarding acquisition of issued shares of Osaka Car
Life Group Co., Ltd.
At a resolution at a Board of Directors’ meeting held on April 17, 2014, the Company decided toacquire 200 issued shares (51.95% of the total number of issued shares) of Osaka Car LifeGroup Co., Ltd. (“OCG”), thereby making it into a subsidiary. On the same day, it concluded ashare transfer agreement with NMC2007 Investment Limited Partnership (“NMC Fund”). Detailsof the share acquisition are as follows.
1) Objective
Since its establishment in 1961, Enex has grown strong roots in local communities
throughout Japan, and based on the corporate philosophy of “partnering with society andordinary people,” it has served as an energy lifeline to these communities by delivering
primarily petroleum products and LP gas. Energy is, of course, a critical part of social
infrastructure. Enex also believes that energy creates prosperous communities and nurtures
people. This is an important part of Enex’s philosophy which has sustained the Company
over the years. In 2009 Enex commenced operations in the electric power business, andtoday the Company is executing its growth strategies with the aim of becoming a new type ofenergy company centered on petroleum, gas, and electricity.
Enex’s Car-Life Division is an important business division alongside the Home-Life, Power &Utility, and Energy Trade Divisions. The division operates approximately 2,100 Car-Life
Stations selling gasoline, kerosene, diesel, and other products, making Enex the No.1
energy trading company in Japan in terms of scale. Enex strives to adapt swiftly to changes
in increasingly diverse customer needs through a basic approach of transforming ordinary
service stations into the Car-Life Station format. Enex works to enhance station operator
earnings and create Car-Life Stations with strong customer appeal by providing acomprehensive range of auto services.
OCG is a holding company, with subsidiaries including Nissan Osaka Sales Co., Ltd., thelargest Nissan Motor Co. Ltd.-affiliated dealer in Japan with net sales of approximately 100.0
billion yen and the only Nissan dealer within Osaka Prefecture. OCG was established in
November 2009 as a joint venture between Nippon Mirai Capital Co., Ltd. and Nissan
Network Holdings Co., Ltd. (A consolidated subsidiary of Nissan Motor Co., Ltd.).
In the current shareholder composition of OCG, NMC Fund holds a 51.95% share andNissan Network Holdings Co., Ltd. holds a 46.75% share. The remaining 1.3% is held byother shareholders.
With this acquisition of shares, Enex’s Car-Life Division will extend its reach beyond sales offuel and other products and operation of Car-Life Stations by making a full-scale entry into
the automobile-related business. In this way, the move will contribute to the division’s aims of“strengthening the Car-Life value chain” and “increasing added value across the entire value
chain.” Organically combining the business assets of OCG and Enex will further enhance theexisting business base of Enex, which primarily includes fuel sales. Moreover, Enex will also
pursue synergies to propose new value for customers’ motoring lifestyles.
2) Outline of the acquiree
(1)
Name
(2)
Location(3)
Representative(4)

Business activities

(5)
(6)

CapitalEstablished

Osaka Car Life Group Co., Ltd.
3-14-22, Minamihorie, Nishi-ku, Osaka-shi, Osaka
Koji Furuta, Representative Director and President
Takahisa Shirato, Representative Director and Vice President
Holding company owning all issued shares of Nissan Osaka
Sales Co., Ltd.
<Business activities of Nissan Osaka Sales Co., Ltd.>Sales and maintenance of Nissan vehicles (vehicle inspection,legal inspection, repair), sales of components, agency businessfor various insurances, and sales of used cars
310 million yen
November 10, 2009- 20 -

(7)Consolidated financial results and consolidated financial position of the company ofthe most recent year
(millions of yen unless otherwise indicated)
Fiscal year ended March 31,

2013

Net assets

8,252

Total assets

45,296

Net assets per share

21,435,000 yen

Net sales

105,920

Operating income

2,792

Ordinary income

2,517

Net income

2,522

Net income per share3) Date of share acquisition

6,551,000 yen

May 30, 2014 (planned)4) Number of shares to be acquired and ownership ratio after acquisitioni) Number of shares to be acquiredii) Ownership ratio after acquisition

200 shares
Enex

51.95％

Nissan Network Holdings Co., Ltd.

46.75％

Others1.30％* The acquisition price is not disclosed at this moment because Enex has entered into a nondisclosure agreement with the other party. Enex will disclose the acquisition price in a timely
manner after the completion of the share transfer.

- 21 -