This document is an English translation of quarterly financial results report released on January 31, 2017 and written initiallyin Japanese.
The Japanese original should be considered as the primary version.

January 31, 2017

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

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

Scheduled date 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:February 10, 2017
－
None
None

(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated financial results for the first nine months of the fiscal year ending March 31, 2017(from April 1, 2016 to December 31, 2016)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Nine months ended
December 31, 2016
December 31, 2015

Nine months ended
December 31, 2016
December 31, 2015

Total tradingtransactions

Profit fromoperatingactivities

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen730,108 (12.0)
829,925 (22.1)

13,621
11,52018.2
19.5

13,062
10,773

21.3
22.5

8,565
6,726

Profit before tax

Basic earnings per
share attributable
to Itochu Enex’s
shareholders

Diluted earnings
per share
attributable to
Itochu Enex’s
shareholders

Yen

Yen

61.17
51.26

Net profit
attributable to
Itochu Enex’s
shareholders

Comprehensive
income%Millionsof yen%Millionsof yen

%

27.3
25.9

6,912
5,791

19.3
24.2

8,692
6,498

33.8
15.9

Net profit––

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

(2) Consolidated financial position
Total assets

As ofDecember 31, 2016
March 31, 2016

Total shareholders’equityTotal equity

Millions of yen

Millions of yen

333,869
304,053

Ratio of shareholders’equity to total assets

Millions of yen

122,628
117,162%

104,683
100,526

31.4
33.1

2. Cash dividends
Annual cash dividends per share
Second quarterend

First quarter-end
Fiscal year ended
March 31, 2016
Fiscal year ending
March 31, 2017

Yen

Third quarter-end

Yen

Fiscal year-end

Yen

–

12.00

–

–

13.50

–

Fiscal year ending
March 31, 2017
(Forecast)

Total

Yen

Yen

12.00

24.00

13.50

27.00

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

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2017(from April 1, 2016 to March 31, 2017)

Total tradingtransactions
Millions of yen

Fiscal year ending
March 31, 2017

1,060,000

Profit from operating
activities% Millions of yen(1.1)

17,500(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

6.8

17,000% Millions of yen

13.3

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

10,000

%

33.9

Yen

88.50

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimatesa. Changes in accounting policies required by IFRSs:
b. Changes in accounting policies other than the above:c. Changes in accounting estimates:

None
None
None

(3) Number of issued shares (common stock)a. Total number of issued shares at end of period (including treasury stock)
As of December 31, 2016

116,881,106 shares

As of March 31, 2016

116,881,106 sharesb. Number of treasury stock at end of period
As of December 31, 2016

3,892,298 shares

As of March 31, 2016

3,891,809 sharesc. Average number of outstanding shares during period (cumulative from the beginning of the fiscal year)
For the nine months ended December 31, 2016

112,989,108 shares

For the nine months ended December 31, 2015

112,989,631 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 Nine 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 Nine Months ................................................. 2(1) Explanation of Operating Results ....................................................................................................... 2(2) Explanation of Financial Position ....................................................................................................... 6(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements ........ 7
2. Matters Regarding Summary Information (Notes) ................................................................................. 8(1) Changes in Significant Subsidiaries During the Period .................................................................... 8(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Prior
Period Financial Statements ................................................................................................................ 8
3. Condensed Quarterly Consolidated Financial Statements ...................................................................... 9(1) Condensed Quarterly Consolidated Statement of Financial Position .............................................. 9(2) Condensed Quarterly Consolidated Statement of Comprehensive Income .................................. 11(3) Condensed Quarterly Consolidated Statement of Changes in Equity ........................................... 13(4) Condensed Quarterly Consolidated Statement of Cash Flows ....................................................... 14(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern .................................... 16(6) Segment Information .......................................................................................................................... 16

-1-

1.

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

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

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

In light of the normalized decline in the demand for petroleum and the subsequent industrial
reorganization, as well as a change in the management environment following the full liberalization of
the electricity and gas retail market, the Company is accelerating its strategic initiatives geared toachieving sustainable growth.
For the full liberalization of the electricity retail market which began in April 2016, we named
electricity supply services for households, which the Itochu Enex Group has been developing, ―e-kotodenki!*1‖ and implemented retail sales through group companies that sell LP gas, etc. The Itochu Enex
Group also started the wholesale of electricity and the provision of supply/demand adjustment services
to businesses that are considering selling electricity to households. It aims to create a balancing group*2
and continues to expand its range of electricity retailing support services aimed at local governments
and businesses from other sectors.
The Itochu Enex Group will offer new value proposals to society and customers by supplying oil, gas,
electricity and other forms of energy and also combinations of products and services in related areas.

-2-

As a result of the above activities, revenue fell by 11.5% year on year to ¥491,905 million. Profit fromoperating activities was ¥13,621 million (up 18.2% year on year) and net profit attributable to Itochu
Enex’s shareholders was ¥6,912 million (up 19.3% year on year).
*1: Only ECORE Co., Ltd. uses the name ―ECORE no e-denki‖ for its electricity supply services.
*2: In the balancing group, the representative of a group made up of multiple electricity retailing businesses adjusts the
supply and demand within the entire group. This reduces the risk of being subject to in-balance penalty payments
under the balancing system.

2)

Results of operations by segment<Power & Gas Business Group>
Home-Life Division
In the Home-Life Division, the sales volume of LP gas fell slightly from that of the corresponding
period of the previous fiscal year, mainly due to declining demand for automotive gas. Profit fromoperating activities increased from the corresponding period of the previous fiscal year, mainly due tosuccessful efforts to secure a certain level of profits through the gas rate adjustment system and an
improvement in profitability at associates accounted for by the equity method owning to an increase in
the import price of LP gas.
In response to the full liberalization of the electricity retail market started in April 2016, we developed
electricity supply services for households through Group companies across Japan. As of December
2016, we had secured roughly 26,000 supply contracts. We will continue to implement our initiatives inorder to reach our target of 30,000 contracts by the end of March 2017.
In overseas business, we took a stake in LP gas sales company Isla Petroleum & Gas Corporation
through an investment in the Philippines in May 2016. We have dispatched more personnel who havehands-on experience to the company since January 2017 with the aim of utilizing our expertise in Japan
to expand sales of LP gas in the Philippines.
In addition, PT. ITC ENEX INDONESIA, a producer and seller of industrial gas established inIndonesia in 2015, completed the construction of its head office building and filling station in the
Karawang Industrial Estate in September 2016. The company will now strengthen its business base andwork to expand sales of industrial gas, mainly targeting Japanese companies operating in Indonesia.
As a result of these activities, revenue was ¥57,378 million (down 12.2% year on year), profit fromoperating activities was ¥1,532 million (up 12.1% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥418 million (up 202.0% year on year).

-3-

Power & Utility Division
In the Power & Utility Division, electricity sales volume and profits increased significantly from thecorresponding period of the previous fiscal year. This reflected growth in electricity demand fromhouseholds following the full liberalization of the electricity retail market in April 2016 and efforts topromote sales of electricity to business users.
In the power generation field, power generated by wind power increased from the corresponding periodof the previous fiscal year. In addition, in thermal power generation, we carefully adjusted night-time
power generation levels based on price trends in the spot market. As a result, total power generation
decreased from the corresponding period of the previous fiscal year.
In the heat supply business*3, demand for heat increased year on year due to average temperatures in
the Kanto region that were higher than those of the previous fiscal year during summer and lower thanthose of the previous fiscal year from autumn to winter. Although total trading transactions fell from thecorresponding period of the previous fiscal year, profits in this business increased year on year mainly
due to a drop in the electric power costs.
In the electricity retailing field, the Power & Utility Division is taking a number of steps. In existingareas of the market that have already been liberalized (high-voltage: for business users), the division isreinforcing sales in each area while taking into account regional characteristics. Also, with respect toelectricity sales in areas liberalized (low-voltage: households and other areas), the Power & Utility
Division enhances cooperation with other divisions in the Company. In addition, in order to expand
sales channels into other industries, we established Itochu Enex Life Service Co., Ltd. to support thelifestyle-related business. In January 2017, Itochu Enex Life Service Co., Ltd. teamed up with Nissan
Osaka Sales Co., Ltd., a Group company, to commence the Collaborative Business between Cars andElectricity, continuing to provide new value proposals through electricity.
As a result of these activities, revenue was ¥43,739 million (up 43.5% year on year), profit fromoperating activities was ¥5,070 million (up 35.5% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥2,566 million (up 35.7% year on year).
*3 Heat supply business: The heat supply business supplies cold and hot water (heat carrier) for air conditioning tomultiple office buildings and other buildings from a heat source plant using pipes.

<Distribution & Energy Innovation Business Group>
Car-Life Division
In the Car-Life Division, sales volume declined from the corresponding period of the previous fiscal
year, reflecting a continued drop in demand for fuel oil in the domestic market. Profit from operating
activities, however, increased from the corresponding period of the previous fiscal year due to-4-contribution of Nissan Osaka Sales Co., Ltd., and the like.
As part of our retail strategy, we pushed ahead with the introduction of our new POS system at Car-Life
Stations*4 from the first half of this fiscal year and used the Rakuten Super Points system to exchange
customers with affiliated stores in other sectors. Also, in line with the service on the Internet, we will
actively increase the number of stores affiliated with Rakuten Shaken, a statutory vehicle inspection
service offered by Rakuten, Inc., and implement joint campaigns to attract shaken (vehicle inspection)customers from e-commerce sites.
In addition, we launched a new Carlife Stadium service brand and began operating three types ofbusinesses: car rental business, car dealership business and car sales business. Through our Carlife
Stadium, we intend to increase profits by attracting new customers and growing the number of users ineach service area.
Meanwhile, Enexauto Co., Ltd. increased the number of stores affiliated with its car wash businessportal website, Japan Car Wash Federation (for business users), reaching 2,107 affiliated stores at theend of December 2016, which supported wider use of Sensya Senka (for general users). Also, as part ofefforts to increase contact with customers, we began offering communication service Dorachan (Driver
Channel) via large monitors and tablet PCs in Car-Life Stations, aiming to set Car-Life Stations apart,using the media functionality of Dorachan, from other stores in the market and create new customer
value.
The number of Car-Life Stations in the Itochu Enex Group as of December 31, 2016, was 1,925,
marking a net decrease of 48 stations from the end of the previous fiscal year due to disaffiliation of
unprofitable and decrepit stations.
As a result of these activities, revenue was ¥337,121 million (down 11.4% year on year), profit fromoperating activities was ¥3,716 million (up 34.0% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥1,701 million (up 25.1% year on year).
*4 Car-Life Stations: Car-Life Stations are service stations offering multiple services provided by the Company.

Energy Innovation Division
The Energy Innovation Division faces a structural decline in demand for domestic petroleum productscaused by factors such as more efficient use of energy. Also, under an operating environment in which
the petroleum products market was affected by rises in crude oil prices following trends among OPEC
and other oil producing countries, the division is working to expand business with existing customers
and attract new customers as part of efforts to build a revenue base which is based on businessportfolios.
In this division, based on our policy of ―expansion of business portfolios,‖ we are ―appropriately andeffectively enhancing and managing assets‖ and ―actively pushing ahead with new business
commercialization projects.‖ In sales of industrial fuels and materials, logistics functions were-5-

reinforced by activities such as Kokura Enterprise Logi Service Co., Ltd, established in February 2016,beginning sales to small volume users. Moreover, in the AdBlue sales business, we established our ten
partner plants and 20 supply facilities in Japan to build our integrated sales systems covering all phasesfrom production to distribution. We are also working to improve the profitability by providing
comprehensive materials covering areas such as electricity sales to business users, in addition to eachdivision’s existing business. Also, we are working steadily to commercialize new businesses, such as
the recovery and reuse of waste oil from ships, and the use of fly ash discharged from thermal power
plants as a construction raw material.
Going forward, the division will develop proposals tailored to customer needs while responding
flexibly to changes in the external environment, aiming to conduct business development based on
close cooperation with Group companies.
As a result of these activities, revenue was ¥53,667 million (down 32.5% year on year), profit fromoperating activities was ¥2,469 million (down 13.4% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥1,753 million (down 7.1% year on year).

(2) Explanation of Financial Position
Assets, liabilities and equity
Total assets amounted to ¥333,869 million as of December 31, 2016, an increase of ¥29,816 million fromMarch 31, 2016, mainly reflected a rise in trade receivables. Total liabilities amounted to ¥211,241 million,
an increase of ¥24,350 million from March 31, 2016, mainly due to an increase of trade payables. Total
equity totaled ¥122,628 million, an increase of ¥5,466 million from March 31, 2016, mainly due to anincrease of retained earnings.

Cash flows
Cash and cash equivalents (net cash) totaled ¥16,981 million as of December 31, 2016, down ¥3,843
million from March 31, 2016.

Cash flows from operating activities
Operating activities provided net cash of ¥8,126 million. Major items included proceeds from profit
before tax of ¥13,062 million and expenses as funds required for trading of ¥4,169 million.

Cash flows from investing activities
Investing activities used net cash of ¥11,976 million. Major items included payments for deposit paid in
subsidiaries and associates, which are affiliates including parent, subsidiaries and associates, of ¥6,000-6-million and payments for purchase of property, plant and equipment and investment property and otheritems of ¥7,065 million.

Cash flows from financing activities
Financing activities earned net cash of ¥22 million. Major items included proceeds from an increase ininterest-bearing debt of ¥3,248 million and expenses as payment of cash dividends of ¥3,226 million.

(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 28, 2016.

-7-

2.

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

(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Prior
Period Financial Statements
Accounting policies that Itochu Enex Group has applied in the condensed quarterly consolidated financial
statements are the same policies that were applied in the consolidated financial statements for the previous
fiscal year.

-8-

3.

Condensed Quarterly Consolidated Financial Statements(1) Condensed Quarterly Consolidated Statement of Financial Position(Millions of yen)

ASSETS
Current assets
Cash and cash equivalents
Trade receivables
Other current financial assets
Inventories
Trade advances paid
Other current assets
Total current assets
Non-current assets
Investments accounted for by the equity method
Other investments
Non-current financial assets other than investments
Property, plant and equipment
Investment property
Goodwill
Intangible assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

-9-

As of

As of

March 31, 2016

December 31, 2016

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

16,981
96,55326,08725,356
2,949
1,541

137,865

169,467

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

10,166
7,462
9,705
87,91912,913588
23,755
10,714
1,180

166,188

164,402304,053

333,869(Millions of yen)
As of

As of

March 31, 2016

December 31, 2016

LIABILITIES AND EQUITYCurrent liabilities
Short-term bonds and borrowings
Trade payables
Other current financial liabilities
Income taxes payable
Advances from customers
Other current liabilities

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

9,528
104,329
6,425
1,745
5,759
7,608

Total current liabilities

111,997

135,394

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

32,42324,780
10,326
2,413
5,367
538

Total non-current liabilities

74,89475,847

Total liabilities

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

186,891

211,241

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

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

19,87818,74069,718(1,901)(1,752)

Total shareholders’ equity

100,526

104,683

16,636

17,945

117,162

122,628

304,053

333,869

Non-controlling interests
Total equity
Total liabilities and equity- 10 -

(2) Condensed Quarterly Consolidated Statement of Comprehensive Income(Millions of yen)
Nine months ended

Nine months ended

December 31, 2015

December 31, 2016

Revenue
Cost of sales

555,791(490,457)

491,905(424,066)

Gross profit

65,334

67,839Other expense
Selling, general and administrative expenses
Loss from tangible assets, intangible assets and goodwill
Other – net(54,063)(184)
433(54,122)(689)
593

Total other expense(53,814)(54,218)

Profit from operating activities

11,52013,621

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

42
240
(730)
0

62
243
(719)
0

Total financial income and costs

(448)

(414)

Share of loss of investments accounted for by the equity method
Profit before tax
Income tax expense
Net profit
Net profit attributable to Itochu Enex’s shareholders
Net profit attributable to non-controlling interests- 11 -

(299)

(145)

10,77313,062(4,047)(4,497)

6,726

8,565

5,791
935

6,912
1,653

(Millions of yen)
Nine months ended

Nine months ended

December 31, 2015

December 31, 2016

Other comprehensive income (net of tax effect)
Items that will not be transferred to profit or loss
FVTOCI financial assets
Other comprehensive income in associates accounted for by theequity method
Items that may be transferred to profit or loss
Exchange differences on translating foreign operations
Cash flow hedges
Other comprehensive income in associates accounted for by theequity method
Total other comprehensive income (net of tax effect)
Comprehensive income
Comprehensive income attributable to Itochu Enex’s shareholders
Comprehensive income attributable to non-controlling interests

178

71

0

24

(4)
133

(81)
53

(535)

60

(228)

127

6,498

8,692

5,563
935

7,038
1,654

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

51.26
–

61.17
–

(Millions of yen)
Total trading transactions(Note)

829,925

730,108

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

- 12 -

(3) Condensed Quarterly Consolidated Statement of Changes in Equity(Millions of yen)
Nine months ended

Nine months ended

December 31, 2015

December 31, 2016

EquityCommon stock
Balance at the beginning of the period

19,87819,878

Balance at the end of the period

19,87819,878

Capital surplus
Balance at the beginning of the period

18,74318,740Acquisition of subsidiary shares from non-controlling interests
Balance at the end of the period
Retained earnings
Balance at the beginning of the period
Net profit attributable to Itochu Enex’s shareholders
Transfer from other components of equity
Cash dividends paid to Itochu Enex’s shareholders
Balance at the end of the period
Other components of equity
Balance at the beginning of the period
Other comprehensive income attributable to Itochu Enex’s
shareholders
Transfer to retained earnings
Balance at the end of the period
Treasury stock
Balance at the beginning of the period
Purchase and disposal of treasury stock
Balance at the end of the period
Total shareholders’ equity
Non-controlling interests
Balance at the beginning of the period
Net profit attributable to non-controlling interests
Other comprehensive income attributable to non-controllinginterests
Cash dividends paid to non-controlling interests
Balance at the end of the period
Total equity- 13 -(3)–

18,74018,74062,223
5,791(91)(2,599)66,024
6,912(336)(2,881)

65,32469,718(1,661)(2,364)

(228)

127

91

336

(1,797)(1,901)(1,751)(1)(1,752)(0)(1,752)(1,752)

100,393

104,683

15,515935

16,636
1,653

0

0

(110)

(345)

16,34017,945

116,733

122,628

(4) Condensed Quarterly Consolidated Statement of Cash Flows(Millions of yen)
Nine months ended

Nine months ended

December 31, 2015

December 31, 2016

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

10,773
9,215
184
448
299
5,754
5,497
(8,047)(1,631)417(613)(3,898)13,062
8,132
689
414
145
(27,558)(196)
23,585(4,444)467(637)(5,533)

Net cash flows provided by operating activities

18,3988,126(4)(1,593)12–(5,143)
1,277(1,690)
(180)
218

(10)
1,475
–
(1,613)
1,534(8,866)(6,236)

732

1,013

(985)
49
–
(133)

(829)
–
(6,000)283(14,713)(11,976)

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
Increase in deposits paid – net
Other – net
Net cash flows used in investing activities- 14 -

(Millions of yen)
Nine months ended

Nine months ended

December 31, 2015

December 31, 2016

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

8,315(8,246)
1,729(2,599)
(110)
(1)

7,500
(2,738)(1,514)(2,881)(345)(0)

Net cash flows provided by (used in) financing activities

(912)

22

Net decrease in cash and cash equivalents

2,773(3,828)Cash and cash equivalents at the beginning the period

16,184

20,824

Increase in cash and cash equivalents resulting from merger

77－

Effect of exchange rate changes on cash and cash equivalents

5

(15)

19,03916,981

Cash and cash equivalents at the end of the period- 15 -

(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern
No items to report.

(6) Segment Information
For the Nine months ended December 31, 2015
(Millions of yen)
Reportable segment
Power &
Home-Life

EnergyCar-Life

Utility

Total

Other

Total

Adjustment Consolidated

Innovation

Revenue
Revenue from65,37030,483

380,386

79,552555,7910555,791－

555,791

Intersegment revenue

404

225

2,729

649

4,007

－

4,007

(4,007)－

Total revenue

65,77430,708383,115

80,201

559,7980559,798(4,007)555,791

18,286

5,862

34,761

6,425

65,334065,334－65,334

1,367

3,743

2,774

2,853

10,7371

10,738782

11,520

1,063

3,602

2,440

2,836

9,941

1

9,942

831

10,773

138

1,891

1,360

1,887

5,276

0

5,276

515

5,791

62,01253,629128,296

61,624

305,561－

305,561

19,676325,237

68,526

31,181

408,605

321,613829,9250829,925－

829,925

external customers

Gross profit
Profit fromoperating activities
Profit before tax
Net profit
attributable to
Itochu Enex’s
shareholders

Other items
Total assets
Total tradingtransactions(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥515 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥19,676 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 Nine months ended December 31, 2016
(Millions of yen)
Reportable segment
Power &
Home-Life

EnergyCar-Life

Utility

Total

Other

Total

Adjustment Consolidated

Innovation

Revenue
Revenue from57,37843,739337,12153,667491,905－

491,905－

491,905

Intersegment revenue

206

321

1,095

628

2,250

－

2,250

(2,250)－Total revenue

57,58444,060338,216

54,295494,155－

494,155(2,250)491,905

18,7167,474

35,3006,349

67,839－67,839－67,839

1,532

5,070

3,716

2,469

12,787－

12,787834

13,621

1,451

4,845

3,475

2,519

12,290－12,290772

13,062

418

2,566

1,701

1,753

6,438

－

6,438

474

6,912

61,88764,000125,470

60,749312,106－

312,106

21,763

333,869

60,72345,752365,287

258,346

730,108－

730,108－

730,108

external customers

Gross profit
Profit fromoperating activities
Profit before tax
Net profit
attributable to
Itochu Enex’s
shareholders

Other items
Total assets
Total tradingtransactions(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥474 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥21,763 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, 2016
(Millions of yen)
Reportable segment- 17 -Power &Home-Life

EnergyCar-Life

Utility
Total assets(Note)

60,404

55,144

Total

Other

Total

282,316–

282,316

Adjustment Consolidated

Innovation
116,484

50,284

21,737304,053

The adjustment of ¥21,737 million to total assets represents corporate assets not allocated to reportable segments.

Change in reportable segments
During the three months ended June 30, 2016, the Company has changed the name of ―Home-Life
Division‖ to ―Home-Life Division,‖* ―Power & Utility Division‖ to ―Power & Utility Division,‖* ―CarLife Division‖ to ―Car-Life Division,‖* and ―Energy Trade Division‖ to ―Energy Innovation Division.‖
Segment information during the Nine months ended December 31, 2015 and as of the end of the previous
fiscal year (March 31, 2016) has been represented by the name after the change.

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

- 18 -