This document is an English translation of financial results report released on April 26, 2019 and written initially in Japanese.
The Japanese original should be considered as the primary version.

April 26, 2019

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2019
<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 of ordinary general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary results briefing material on financial results:
Holding of financial results presentation meeting:June 19, 2019
June 20, 2019
June 19, 2019
Yes
Yes (for institutional
investors and analysts)(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended March 31, 2019(from April 1, 2018 to March 31, 2019)(Percentages indicate year-on-year changes.)(1) Consolidated operating results

Fiscal year ended
March 31, 2019
March 31, 2018

Net profit
attributable to
Itochu Enex’s
shareholders

Comprehensive
income%Millionsof yen%Millionsof yen%13,665

3.3

11,5594.8

13,150(4.2)

13,224

3.8

11,025

6.0

13,7293.0

Total tradingtransactions

Profit fromoperatingactivities

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen1,244,260

7.6

17,851

4.1

19,414

1.3

1,156,344

12.4

17,153(12.8)

19,169(0.9)

Basic earnings per
share attributable
to Itochu Enex’s
shareholders

Profit before tax

Diluted earnings
per share
attributable to
Itochu Enex’s
shareholders

Net profit

Return on equity
obtained as the net
profit attributable
to Itochu Enex’s
shareholders tototal shareholders’equity%Yen
Yen
Fiscal year ended
March 31, 2019
102.40–9.7
March 31, 2018
97.63
–
9.8
Reference: Revenue
For the fiscal year ended March 31, 2019: 1,007,086 million yen
For the fiscal year ended March 31, 2018: 744,767 million yen
Share of profit (loss) of investments accounted for using equity method
1,565 million yen
For the fiscal year ended March 31, 2019:
493 million yen
For the fiscal year ended March 31, 2018:

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

%

%

5.1
5.3

1.4
1.5

Note: “Total trading transactions” are presented in accordance with the Japanese accounting practices.

(2) Consolidated financial position
Total assets
As ofMarch 31, 2019
March 31, 2018

Ratio ofshareholders’equity to total
assetsTotal shareholders’equityTotal equity

Millions of yen

Millions of yen

Millions of yen

374,373
382,621

144,566
137,066

122,290
116,104

Shareholders’equity per share
%

Yen

32.7
30.3

1,083.37
1,028.57(3) Consolidated cash flows
Net cash flows from(used in) operating
activities
Fiscal year ended
March 31, 2019
March 31, 2018

Net cash flows from(used in) investing
activities

Net cash flows from(used in) financing
activities

Cash and cash
equivalents at end of
the period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

25,40324,239(13,410)(18,458)(15,857)(5,850)18,72522,573

2. Cash dividends
Annual cash dividends per shareFirst
quarterend
Fiscal year ended
March 31, 2018
March 31, 2019
Fiscal year ending
March 31, 2020
(Forecast)

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

Secondquarterend

Third
quarterend

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

16.00
20.00

–
–

24.00
22.00

40.00
42.00

4,520
4,745

41.0
41.0

4.0
4.0

–

21.00

–

21.00

42.00

Fiscalyear-end

Total

40.2

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

Six months ending
September 30, 2019
Fiscal year ending
March 31, 2020

(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% Millions of yen% Millions of yen

%

Yen

–

–

–

–

–

–

–

–

–

1,000,000(0.7)

16,500(7.6)

19,200(1.1)

11,8002.1

104.54

Note: The Company’s performance is evaluated on a fiscal year basis. Accordingly, consolidated earnings forecasts for the
first six months of fiscal year are not prepared.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimatesa. Changes in accounting policies required by IFRSs:
Yes
b. Changes in accounting policies other than the above:Nonec. Changes in accounting estimates:
None(Note) For details, please refer to “3. Consolidated Financial Statements and Significant Notes Thereto,(5) Notes to Consolidated Financial Statements” on page 14 of the attached materials.
(3) Number of issued shares (common stock)a. Total number of issued shares at end of period (including treasury stock)
As of March 31, 2019

116,881,106 shares

As of March 31, 2018

116,881,106 sharesb. Number of treasury stock at end of period
As of March 31, 2019

4,002,462 shares

As of March 31, 2018

4,002,135 sharesc. Average number of outstanding shares during period
Fiscal year ended March 31, 2019112,878,838 sharesFiscal year ended March 31, 2018112,921,238 shares* Note on financial results
Ordinary profit and net profit were more than the results for the previous fiscal year due to special
dividends received from subsidiaries.
* Financial results reports are exempt from audit 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. Overview of Operating Results and Others, (1) Overview of Operating Results for the
Fiscal Year Ended March 31, 2019” on page 2 of the attached materials for matters relating to earnings
forecasts.

Contents of Attached Materials
1. Overview of Operating Results and Others .............................................................................................. 2(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2019 .................................... 2(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2019 .................................... 5(3) Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2019 andEnding March 31, 2020 ........................................................................................................................ 6
2. Basic Concepts Underlying Selection of Accounting Standards ............................................................. 6
3. Consolidated Financial Statements and Significant Notes Thereto ........................................................ 7(1) Consolidated Statement of Financial Position.................................................................................... 7(2) Consolidated Statement of Comprehensive Income .......................................................................... 9(3) Consolidated Statement of Changes in Equity ................................................................................. 11(4) Consolidated Statement of Cash Flows............................................................................................. 12(5) Notes to Consolidated Financial Statements .................................................................................... 14
Notes on Uncertainties of Entity’s Ability to Continue as Going Concern .................................... 14
Changes in Accounting Policies ......................................................................................................... 14
Segment Information .......................................................................................................................... 15
Earnings per Share ............................................................................................................................. 19
Significant Events after the Reporting Period ................................................................................. 19

-1-

1.

Overview of Operating Results and Others(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2019
The Group has adopted IFRS 15 “Revenue from Contracts with Customers” from the fiscal year
ended March 31, 2019. For the details of the impact of the adoption of IFRS 15, please refer to “3.
Consolidated Financial Statements and Significant Notes Thereto, (5) Notes to Consolidated Financial
Statements, Changes in Accounting Policies.”
1)

Results of operations
During the fiscal year ended March 31, 2019, the tone of the Japanese economy was one of moderate
recovery, driven by favorable corporate earnings and other factors. However, the outlook for the
economy remained uncertain due to risks of a slowdown in the global economy, stemming from such
issues as the impact on the global economy of the United States-China trade issue trend anduncertainties in overseas economies.
In this environment, the Itochu Enex Group announced its two-year medium-term business plan
“Moving 2018 Connecting to the future” in April 2017, and has advanced its business based on thefollowing basic policies:<1> “Connecting to future growth” — Reforming the revenue base —(1) Optimizing resources(2) Improving profitability(3) Developing the customer base<2> “Connecting people and functions of the Group” — Reforming the organizational base —(1) Reinforcing organizational strength(2) Nurturing autonomous human resources(3) Promoting ENEX EARLY BIRD, a Plan to Transform Our Approach to Work
The operating results for the fiscal year ended March 31, 2019 are as follows.
Revenue was ¥1,007,086 million (up 35.2% year on year), due mainly to the impact resulting from theincrease in prices of domestic petroleum products in the Life & Industrial Energy Division.
Profit from operating activities was ¥17,851 million (up 4.1% year on year), due mainly to higher
profit in the petroleum product sales field of the Life & Industrial Energy Division, while profit fell inthe electricity sales field of the Power & Utility Division.
Net profit attributable to Itochu Enex’s shareholders was ¥11,559 million (up 4.8% year on year),achieving a new record-high profit for a fourth consecutive year.

2)

Results of operations by segment
Results of operations by segment are as follows. Following the reorganization of the Group carriedout in April 2018, the reportable segments have changed. As part of the reorganization, the Life &Industrial Energy Division was newly established by integrating the former Life Energy & Logistics
Division and the Industrial Energy & Logistics Division. In addition, we newly established the
Mobility Life Department.
In line with this, the classification of reportable segments has been changed from the previous HomeLife Division, Power & Utility Division, Life Energy & Logistics Division and Industrial Energy &Logistics Division to the Home-Life Division, Life & Industrial Energy Division, Power & Utility
Division and Mobility Life Department from the fiscal year ended March 31, 2019.
For that reason, the year-on-year comparisons have been recalculated based on the reportablesegments as they exist after the reorganization.
Home-Life Division
In the Home-Life Division during the fiscal year ended March 31, 2019, the number of customers
under direct LP gas supply contracts increased by around 4,000 to approximately 551,000. Due to theimpact of natural disasters and the warm winter, sales volumes fell year on year, despite which we wereable to secure a certain level of profitability.

-2-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 28,000 for a total of approximately 81,000.
In peripheral areas other than LP gas, the solid order flows received in the industrial gas sales businessand the container inspection business led to robust revenue.
In overseas businesses, we are continuing to use the know-how developed in Japan at our industrial gas
sales business in Indonesia (PT. ITC ENEX INDONESIA) and at our LP gas sales business in thePhilippines (Isla Petroleum & Gas Corporation) and going forward, we will continue to expand thesebusinesses.
As a result of these activities, the operating results for the fiscal year ended March 31, 2019 are as
follows.
Revenue was ¥94,350 million (down 3.5% year on year), due mainly to the transition of threesubsidiaries in the Tokyo, Nagoya and Osaka areas to associates accounted for by the equity method in
conjunction with the reorganization and integration with the Osaka Gas Group in October 2017.
Profit from operating activities was ¥3,555 million (up 13.8% year on year), due mainly to thedivision’s success in securing a certain level of profitability, despite the effects of reorganization andintegration.
Net profit attributable to Itochu Enex’s shareholders was ¥3,068 million (down 19.2% year on year),due mainly to the reaction to the profits recognized in the previous fiscal year related to thereorganization and integration, despite an increase in earnings of associates accounted for by the equity
method.
Life & Industrial Energy DivisionDuring the fiscal year ended March 31, 2019, the Life & Industrial Energy Division worked to maintainand expand its sales base in each business and geographical area, despite an environment characterized
by structural downturn in demand for oil, and by industry reorganizations, such as polarization amongwholesalers.
The division is developing its business with the goal of even closer involvement in the lives of local
communities and local industries, and is striving to further enhance the functionality and to create valueof each of its businesses.
In the Group’s Car-Life Stations (CS)*1 business, which has a high level of engagement with people inlocal communities, we will use dealerships and group companies’ CS outlets not only for our original
energy supply services, but also to provide other services required by local communities, working withthe operators to fulfill our goal of creating locations that provide lifestyle infrastructure to such
communities. During the fiscal year ended March 31, 2019, the total number of Group’s CS was 1,766.
This net decrease of 46 from the end of the previous fiscal year was largely caused by withdrawals
from unprofitable CS. In addition, the number of dealerships that have introduced the Carlife Stadium
car rentals system being deployed by the Group has now reached 399, a net increase of 29 over the endof the previous fiscal year.
In the business related to local industries, we have taken a comprehensive approach to promoting
AdBlue*2, the business user electricity supply business, and other diverse products and services, inaddition to existing businesses.
In terms of initiatives in the environmental-related business, we are moving forward with activities thatlead to reductions in the burden on the environment, such as a slop and oil recycling business in whichwaste oil recovered from ships is recycled and sold, and the fly ash business, which recycles and sells
coal ash discharged from the Company’s thermal power plants.
As a result of these activities, the operating results for the fiscal year ended March 31, 2019 are as
follows.
Revenue was ¥707,661 million (up 51.2% year on year), due mainly to the impact on price resulting
from the increase in prices of domestic petroleum products.

-3-

Profit from operating activities was ¥9,153 million (up 15.3% year on year), due mainly to the effect ofimprovements in retail market conditions, and the reaction to one-off losses recognized in the previous
fiscal year.
Net profit attributable to Itochu Enex’s shareholders was ¥6,185 million (up 17.0% 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.
*2 AdBlue is a high-grade urea solution used in SCR systems, which detoxifies nitrogen compounds (NOx) containedin exhaust gases of diesel vehicles.

Power & Utility Division
In the Power & Utility Division during the fiscal year ended March 31, 2019, the electricity sales fieldof the electric power business, recorded growth in sales to both business users and households,
resulting in year-on-year growth in retail electricity sales volumes. However, the volatility of the spot
market and intensified price competition led to a decline in profit over the previous fiscal year. In thisfield, ENEX LIFE SERVICE CO., LTD. will lead efforts to form alliances with companies that havestrong customer bases in certain areas and with companies in other industries, and promote theinvestigation of new value proposals by developing electricity sales, with some additional value-added
component, to households and small companies, while at the same time shifting away from electricity
sales to large companies, which is an area in which price competition has been intensifying.
In the power generation field, total power generation increased from the previous fiscal year due to thestart of operations at a new power plant in October 2017, leading to an increase in profit year on year.
Our goal is to ensure stable supplies of electricity and reduce environmental impacts. An example ofthis is a program of improvements we are carrying out one by one at deteriorating power generation
facilities to raise their efficiency.
In the financial services field, in February 2019, Enex Infrastructure Investment Corporation, to which
the Company’s subsidiary Enex Asset Management Co., Ltd. provides asset management services on
consignment, listed on the Tokyo Stock Exchange Infrastructure Fund Exchange. Enex Infrastructure
Investment Corporation aims to invest in and manage properties such as renewable energy power
generation facilities, concentrating on solar power generation facilities and related infrastructure, andsteadily expand the scale of its portfolio and generate stable cash flow.
In the heat supply business*3, due to the effects of fierce heat last year, demand for heat increased overthe previous fiscal year. The division will continue its efforts to develop as a comprehensive energy
services business*4, so as to be able to respond to the increasingly diverse needs of customers in thisfield.
As a result of these activities, the operating results for the fiscal year ended March 31, 2019 are as
follows.
Revenue was ¥93,459 million (up 25.4% year on year), due mainly to an increase in retail electricity
sales volumes.
Profit from operating activities was ¥2,728 million (down 41.0% year on year), due mainly to lower
profit in the electric power business resulting from falling profitability in the areas of sales andsupply/demand management, and from declining profit from interconnected power line management.
Net profit attributable to Itochu Enex’s shareholders was ¥1,970 million (down 10.9% year on year),due mainly to the same reasons as the impacts on profit from operating activities described above.
*3 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 Energy services business: The energy services business owns electric and heat source facilities, etc. and supplies
cold and hot air-conditioning water, hot water for hot-water supply, steam and others on behalf of customers in theuse of energy.

-4-

Mobility Life Department
The Mobility Life Department enjoyed strong sales during the fiscal year ended March 31, 2019 due tosales of popular cars such as Note, Serena and Leaf at OSAKA CAR LIFE GROUP CO., LTD., asubsidiary, in the car dealer business. The “Nissan Osaka Sales e-Denki” initiative, implemented as partof our efforts to strengthen the customer base, has also been successful.
As a result of these activities, the operating results for the fiscal year ended March 31, 2019 are as
follows.
Revenue was ¥111,616 million (up 7.0% year on year), due mainly to the strong performance of the car
dealer business.
Profit from operating activities was ¥2,351 million (up 15.6% year on year), due mainly to higher profit
in the car dealer business resulting from solid sales of highly profitable vehicle models.
Net profit attributable to Itochu Enex’s shareholders was ¥319 million (up 63.5% year on year), due
mainly to an increase in profit in the car dealer business.
3)

Forecasts of consolidated financial results for the fiscal year ending March 31, 2020
In the forecast for consolidated financial results for the fiscal year ending March 31, 2020, we project¥1 trillion in revenue, down 0.7% year on year, ¥16,500 million in profit from operating activities,
down 7.6% year on year, ¥19,200 million in profit before tax, down 1.1% year on year, and ¥11,800
million in net profit attributable to Itochu Enex’s shareholders, up 2.1% year on year.
Basic earnings per share attributable to Itochu Enex’s shareholders are projected at ¥104.54.

(2) Overview of Financial Position for the Fiscal Year Ended March 31, 20191) Analysis of assets, liabilities, equity and cash flows
Assets, liabilities and equity
Total assets amounted to ¥374,373 million as of March 31, 2019, a decrease of ¥8,248 million fromMarch 31, 2018. This decrease mainly reflected a decrease in trade receivables of ¥13,376 million. Total
liabilities amounted to ¥229,807 million, a decrease of ¥15,748 million from March 31, 2018, mainly due
to decreases in borrowings of ¥8,595 million and trade payables of ¥5,768 million. Total equity totaled¥144,566 million, an increase of ¥7,500 million from March 31, 2018, due to factors including an increaseof ¥11,559 million from net profit attributable to Itochu Enex’s shareholders and a decrease of ¥5,430
million by payment of cash dividends.
We consequently ended the fiscal year with a ratio of shareholders’ equity to total assets of 32.7%.
Cash flows
Cash and cash equivalents (net cash) totaled ¥18,725 million as of March 31, 2019, down ¥3,848 million
from March 31, 2018.
Cash flows from operating activities
Operating activities provided net cash of ¥25,403 million. Major items included profit before tax of¥19,414 million, depreciation and amortization of ¥10,086 million, a decrease in trade payables of ¥5,788
million and income taxes paid of ¥8,510 million. Net cash provided increased ¥1,164 million year on year.
Cash flows from investing activities
Investing activities used net cash of ¥13,410 million. Major items included payments for purchase ofproperty, plant and equipment and investment property, etc. of ¥12,883 million, mainly in the Power &Utility Division. Net cash used decreased ¥5,048 million year on year.

-5-Cash flows from financing activities
Financing activities used net cash of ¥15,857 million. Major items included expenditures due to adecrease in interest-bearing debt of ¥10,274 million and expenses as payment of cash dividends of ¥5,430
million. Net cash used increased ¥10,007 million year on year.
2)

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

2017
31.5

2018
30.3

2019
32.7

30.2

29.5

26.9

2.3
19.2

1.8
27.8

1.3
30.3

Ratio of shareholders’ equity to total assets: Total shareholders’ equity / Total assets
Ratio of shareholders’ equity to total assets at market value: Market capitalization / Total assets
Ratio of cash flow to interest-bearing debt: Interest-bearing debt / Cash flow
Interest-coverage ratio: Cash flow / Interest expense(Note 1.) All of the above ratios were calculated using consolidated financial statement data.
(Note 2.) Market capitalization was calculated by multiplying the fiscal-year-end closing share price by
the number of shares outstanding at fiscal year-end (net of treasury stock).
(Note 3.) “Cash flow” is “Cash provided by (used in) operating activities” on the Consolidated
Statement of Cash Flows.
(Note 4.) Interest-bearing debt is all debt, of the debt carried on the Consolidated Statement of
Financial Position, on which interest is payable.
(3) Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2019 and Ending
March 31, 2020
In terms of shareholder returns, we aim to maintain a consolidated dividend payout ratio of at least 40% 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, 2019, we plan to pay a year-end dividend of ¥22 per share. For the
fiscal year ending March 31, 2020, we plan to pay annual dividends of ¥42 per share (including an interim
dividend of ¥21 per share).
With respect to internally retained funds, our basic policy is to use such funds to invest in our business tostrengthen our operating foundation and further increase earnings.

2.

Basic Concepts Underlying Selection of Accounting Standards
The Itochu Enex Group adopted IFRS (International Financing Reporting Standards) from the fiscal year
ended March 31 2014, in order to improve international comparability and the convenience of financial
information in capital markets.

-6-

3.

Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Statement of Financial Position
As ofMarch 31, 2018ASSETS
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-7-(Millions of yen)
As ofMarch 31, 201922,573
119,541
38,86028,380
0
1,690
1,725

18,725
106,165
36,03433,053
2,533
111
3,154

212,769

199,775

26,145
3,406
11,40085,326
10,166692
20,79810,502
1,417

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

169,852

174,598

382,621374,373As ofMarch 31, 2018
LIABILITIES AND EQUITYCurrent liabilities
Short-term bonds and borrowings
Trade payables
Other current financial liabilities
Income taxes payable
Advances from customers
Other current liabilities
Total current liabilities
Non-current liabilities
Non-current bonds and borrowings
Other non-current financial liabilities
Non-current liabilities for employee benefits
Deferred tax liabilities
Provisions
Other non-current liabilities(Millions of yen)
As ofMarch 31, 201912,432
127,4458,539
3,650
10,583
12,28011,217
121,677
7,905
3,193
9,651
11,820174,929

165,463

30,27323,335
9,820
2,185
4,757
256

22,89323,531
9,936
2,287
5,462
235

Total non-current liabilities

70,62664,344

Total liabilities

245,555

229,807

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

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

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

Total shareholders’ equity

116,104

122,290

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

20,962

22,276

137,066

144,566

382,621374,373(2) Consolidated Statement of Comprehensive Income
Fiscal year ended
March 31, 2018

(Millions of yen)
Fiscal year ended
March 31, 2019

Revenue
Cost of sales

744,767(655,945)

1,007,086(922,876)

Gross profit

88,822

84,210

Other income and expense
Selling, general and administrative expenses
Loss from tangible assets, intangible assets and goodwill
Other – net(70,931)(1,544)806(67,318)
(241)
1,200

(71,669)(66,359)

17,153

17,851

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

92
296
(950)
(241)

83
66
(906)
755

Total financial income and costs

(803)

(2)

493

1,565

2,326

–

19,16919,414(5,945)(5,749)Net profit

13,224

13,665

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

11,025
2,199

11,5592,106

13,224

13,665

Total other income and expense
Profit from operating activities

Share of profit (loss) of investments accounted for by the equity
methodGains on business reorganization and others
Profit before tax
Income tax expense

Total

-9-

Fiscal year ended
March 31, 2018
Other comprehensive income, net of tax effectItems that will not be reclassified to profit or loss
FVTOCI financial assets
Remeasurement of net defined benefit liability
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)
Fiscal year ended
March 31, 2019

892
105

(108)
(175)

(9)

(54)

(38)
74

(10)
25

(519)

(193)

505

(515)

Comprehensive income

13,72913,150Comprehensive income attributable to:Comprehensive income attributable to Itochu Enex’s shareholders
Comprehensive income attributable to non-controlling interests

11,4602,269

11,1272,023

13,72913,150Total other comprehensive income, net of tax effect

Total

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

97.63–

1,156,344

102.40–(Millions of yen)
1,244,260

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”).

- 10 -

(3) Consolidated Statement of Changes in Equity
Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders’ equity

Balance at April 1, 2017

Commonstock

CapitalsurplusRetainedearnings

Other
componentsof equity

Treasury
stock

Total
shareholders’equityNoncontrollinginterests

Total equity

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

108,511

18,966

127,477

11,025

2,199

13,224

435

435

69

505

435

11,4602,269

13,729(3,898)(615)(4,513)

Net profit

11,025

Other comprehensive
incomeComprehensive income

11,025

Transactions with owners
Cash Dividends(3,898)Acquisition of subsidiaryshares from noncontrolling interestsand others

152

152

Changes due to additional
acquisitions and sales ofinterests in subsidiaries

343

Transfer from othercomponents of equity toretained earnings

(75)

–

(121)

(121)

(121)

(1,873)

116,104–

Share-based payments
19,87818,89280,352(1,145)

343

–

75

Purchase and disposal oftreasury stock
Balance at March 31, 2018152–
20,962137,066

Fiscal year ended March 31, 2019
(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

11,5592,106

13,665

(432)

(432)

(83)

(515)

(432)

11,127

2,023

13,150(4,971)(459)(5,430)Net profit

11,559Other comprehensive
income11,559Comprehensive income
Transactions with owners
Cash Dividends(4,971)

Acquisition of subsidiaryshares from noncontrolling interestsand others

23

23

Changes due to additional
acquisitions and sales ofinterests in subsidiaries(250)

Transfer from othercomponents of equity toretained earnings

(171)

–

(0)

(0)

(0)

(1,873)

122,290

7

Share-based payments
19,87818,922

7
86,769- 11 -(1,406)

(250)

–

171

Purchase and disposal oftreasury stock
Balance at March 31, 201923

7
22,276

144,566(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2018
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss from tangible assets, intangible assets and goodwill
Financial income and costs
Share of loss (profit) of investments accounted for by the equity
methodGains on business reorganization and others
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other – net
Dividends received
Interest received
Interest expense
Income taxes paid
Net cash flows provided by operating activities
Cash flows from investing activities
Purchase of investments accounted for by the equity method
Purchase of investments
Proceeds from sales of investments
Acquisition of subsidiaries, net of cash acquired
Proceeds from acquisition of subsidiaries
Loss of control of subsidiaries
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 (increase) in deposits paid – net
Other – net
Net cash flows used in investing activities- 12 -

Fiscal year ended
March 31, 201919,16910,824
1,544
803

19,414
10,086
241
2

(493)

(1,565)(2,326)(25,998)(1,964)
26,522
3,461
645
92
(873)
(7,167)–
13,602(4,667)(5,788)
2,935
406
85
(838)
(8,510)24,23925,403(5,972)(256)
5,411(3,751)
–
(598)
(444)
5,675

(2,379)
(284)
103
–
22
–
(907)
752

(11,887)(12,883)

2,536

1,978

(2,545)136(7,000)
237

(832)
193
–
827

(18,458)(13,410)(Millions of yen)
Fiscal year ended
March 31, 2018
Cash flows from financing activities
Repayments of bonds and borrowings
Net increase in short-term borrowings
Proceeds from share issuance from non-controlling interests
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
Net cash flows used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period- 13 -

Fiscal year ended
March 31, 2019(8,615)
7,323
76(3,963)(6,311)
75

–

(228)

(3,898)
(615)
(121)

(4,971)(459)(0)(5,850)(15,857)(69)(3,864)22,727

22,573(85)

16

22,57318,725(5) Notes to Consolidated Financial Statements
Notes on Uncertainties of Entity’s Ability to Continue as Going Concern
No items to report.
Changes in Accounting Policies
From the fiscal year ended March 31, 2019, the following standards have been applied in accordance withtransitional provision.
Standard

Title

IFRS 9 (revised in July 2014)

Financial Instruments

IFRS 15

Revenue from Contracts with
Customers

Description of new/amended
standards or interpretations
Limited amendments to theclassification and measurement
method for financial assets, andintroduction of the expected credit
loss impairment model
Establishment of accounting anddisclosure on revenue arising fromcontracts with customers(IFRS 9 “Financial Instruments” (revised in July 2014))
The Group has adopted IFRS 9 “Financial Instruments” (revised in July 2014) effective from the fiscal
year ended March 31, 2019. The effect of adoption of this standard on the Group’s consolidated financial
statements is insignificant.
(IFRS 15 “Revenue from Contracts with Customers”)
The Group has adopted IFRS 15 “Revenue from Contracts with Customers” (issued in May 2014) and“Clarifications to IFRS 15” (issued in April 2016) (hereinafter, “IFRS 15” collectively), from the fiscal
year ended March 31, 2019. In the adoption of IFRS 15, the Group has applied the method in which the
cumulative effect of adopting this standard is recognized at the commencement date of adoption, which isallowed as the transitional provision.
In line with the adoption of IFRS 15, the Group has recognized revenue based on the following five-step
approach.
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The Group is engaged in the sale of LP gas, gasoline, kerosene, diesel oil, fuel oil, asphalt, electricity,
automobiles, and other goods. For the sale of these products, the Group considers that a performanceobligation is satisfied when the customer is deemed to obtain control of the product in light of contractual
terms and conditions. Specifically, the Group recognizes revenue on the date when the goods are shipped
or delivered to the customer or when the customer performs an inspection of the delivered goods. In
addition, revenue is recognized at the amount of consideration promised in the contract with the customer
less discounts, rebates, returned goods, etc.
When identifying the performance obligations, and determining whether the Group is involved intransactions as a party to the transaction, or whether the Group is involved as an agent, the Groupconsiders factors such as whether or not the Group has the primary responsibility for providing the- 14 -

product or service to the customer, whether or not the Group bears the inventory risk, and whether or not
the Group has discretion in establishing selling price. For a transaction in which the Group is involved asa party to the transaction, the Group presents revenue at the gross amount of consideration received fromthe customer. For a transaction in which the Group is involved as an agent, the Group presents revenue at
a net amount calculated by deducting the cost of sales from the gross amount of consideration received
from the customer.
As a result of the adoption of IFRS 15, revenue of certain transactions, which had previously beenpresented on a net basis, is presented on a gross basis. Consequently, revenue and cost of sales eachincreased by ¥159,280 million in the consolidated statement of comprehensive income for the fiscal year
ended March 31, 2019, compared with these items in the case where the previous accounting standard had
been applied.
Other than the above, the adoption of this standard has no significant impact on the Group.
Segment Informationi) Outline of Reportable Segments
The reportable segments of the Group are components of the Group whose separate financial
information is available. These segments are periodically evaluated by the Board of Directors indeciding how to allocate management resources and in assessing performance.
The Group is organized into business divisions, consolidating related businesses. Each businessdivision plans strategies for each category of target customers and markets and develops businessactivities. The Group has four reportable segments that correspond to the business divisions, namely
the “Home-Life Division,” “Life & Industrial Energy Division,” “Power & Utility Division,” and“Mobility Life Department.”
The Home-Life Division is engaged in the sale of LP gas, kerosene, town gas (Nakatsu City, Oita
Prefecture and Kanto region), industrial gas, electricity, household equipment, smart energy equipment,
and residential lithium-ion electricity storage systems, as well as in a pressure resistance inspection
business for gas containers and the sale of welding materials.
The Life & Industrial Energy Division is engaged in the provision of gasoline, kerosene, diesel oil, fueloil, LNG, electricity, automobile-related product services, car rental, high-grade urea solution“AdBlue,” credit card business, asphalt, and logistics functions for oil storage facilities, etc., as well as
in the import/export and domestic supply/demand adjustment trading of marine fuel and petroleum
products, and the sale of slop and recycled oil.
The Power & Utility Division is engaged in the sale of electricity (coal-fired, natural gas-fired, wind,hydropower, photovoltaic power) and steam, as well as in providing district heating services,comprehensive energy services, electricity/heat supply services, electric power supply/demand
management services, and asset management business.
The Mobility Life Department is engaged in the car dealer business, the next-generation biodiesel
manufacturing project in the US, and the Euglena domestic bio jet fuel demonstration project.
In the fiscal year ended March 31, 2019, the now former Life Energy & Logistics Division andIndustrial Energy & Logistics Division were integrated to form the newly established Life & Industrial
Energy Division, while the Mobility Life Department was newly established.
In line with this, the classification of reportable segments has been changed from the previous HomeLife Division, Power & Utility Division, Life Energy & Logistics Division and Industrial Energy &Logistics Division to the Home-Life Division, Life & Industrial Energy Division, Power & Utility
Division and Mobility Life Department from the fiscal year ended March 31, 2019.
Furthermore, in conjunction with the absorption-type merger of TOHOKU TANKU SHOUKAI CO.,LTD., which was a subsidiary of the Company, by ITOCHU ENEX HOME-LIFE TOHOKU CO.,LTD., a subsidiary of the Company, the Group reviewed the management classification and changed themethod to include the business of TOHOKU TANKU SHOUKAI CO., LTD., which was previously
included in the Life Energy& Logistics Division (Life & Industrial Energy Division after the abovechange), in the Home-Life Division.

- 15 -

Due to the change in segments, segment information for the previous fiscal year has been adjusted
based on the classification of reportable segments after the change.

- 16 -

ii) Information on Reportable Segments
Fiscal year ended March 31, 2018
(Millions of yen)
Reportable segment
Home-Life
DivisionLife &
Industrial
EnergyDivision

Power &
Utility
Division

Mobility Life
Department

97,811

468,145

74,541

104,270

Total

Adjustment

Consolidated

Revenue
Revenue from externalcustomers

744,767–

744,767Intersegment revenue

336

4,363

5,899

–

10,598(10,598)–

Total revenue

98,147472,508

80,440104,270

755,365(10,598)

744,767

Gross profit

25,077

36,841

8,891

18,01388,822–

88,822

Selling, general andadministrative expenses(22,042)(28,643)(4,328)(16,347)(71,360)

429(70,931)

Loss from tangible assets,intangible assets andgoodwill

(143)

(733)

(288)

200

(964)

(580)

(1,544)

Other profit (loss)

232

471

351

167

1,221

(415)

806

Profit from operating
activities

3,123

7,936

4,626

2,034

17,719(566)

17,153Financial income and costs

164

(138)

(316)

(403)

(693)

(110)

(803)

Share of profit (loss) ofinvestments accounted forby the equity method

540

133

(180)

–

493

–

493

Gains on businessreorganization and others

2,326

–

–

–

2,326

–

2,326

Profit before tax

6,154

7,930

4,130

1,631

19,845(676)

19,169Net profit attributable to
Itochu Enex’s shareholders

3,798

5,288

2,210

195

11,491(466)

11,025(3,291)(2,184)(3,468)(1,372)(10,315)(509)(10,824)

Other items
Depreciation andamortization

(173)

(669)

(13)

–

(855)

(574)

(1,429)Total assets

66,842

145,10980,18963,896

356,036

26,585

382,621

Investments accounted
for by the equity method

17,699

510

7,936

–

26,145–

26,145

Capital expenditures

4,258

2,848

6,014

618

13,738694

14,432

109,161

863,31078,560105,313

1,156,344–

1,156,344

Impairment loss

Total trading transactions(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of negative ¥466 million to net profit attributable to Itochu Enex’s shareholders represents corporate
profit (loss) not allocated to reportable segments.
The adjustment of ¥26,585 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.

- 17 -

Fiscal year ended March 31, 2019
(Millions of yen)
Reportable segment
Home-Life
DivisionLife &
Industrial
EnergyDivision

Power &
Utility
Division

Mobility Life
Department

94,350707,661

93,459111,616

Total

Adjustment

Consolidated

Revenue
Revenue from externalcustomers

1,007,086–

1,007,086

Intersegment revenue

365

9,414

5,969

–

15,748(15,748)–

Total revenue

94,715717,075

99,428111,616

1,022,834(15,748)

1,007,086

Gross profit

22,397

36,108

7,134

18,571

84,210–84,210

Selling, general andadministrative expenses(18,927)(27,791)(4,662)(16,006)(67,386)

68(67,318)

Loss from tangible assets,intangible assets andgoodwill

(172)

(202)

324

(179)

(229)

(12)

(241)

Other profit (loss)

257

1,037

(67)

(35)

1,192

8

1,200

Profit from operating
activities

3,555

9,153

2,728

2,351

17,78764

17,851

Financial income and costs

(24)

(121)

516

(260)

111

(113)

(2)

Share of profit (loss) ofinvestments accounted forby the equity method

1,251

139

175

–

1,565

–

1,565

Profit before tax

4,782

9,171

3,419

2,091

19,463(49)

19,414

Net profit attributable to
Itochu Enex’s shareholders

3,068

6,185

1,970

319

11,542

17

11,559Depreciation andamortization(2,698)(1,990)(3,494)(1,377)(9,559)(527)(10,086)

Impairment loss

(251)

(216)

–

(171)

(638)

–

(638)

Total assets

65,584

137,606

82,43951,798337,427

36,946374,373

Investments accounted
for by the equity method

18,774555

10,112–29,441–

29,441

Capital expenditures

3,259

1,743

6,660

758

12,420

1,295

13,715

105,112

931,798

96,935

110,415

1,244,260–

1,244,260

Other items

Total trading transactions(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥17 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥36,946 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.

- 18 -

iii) Products and Services Information
This information is omitted because the classification of products and services is the same as theclassification of reportable segments.
iv) Geographic Information
This information is omitted because revenue from external customers in Japan accounts for a large
percentage of the revenue recorded in the consolidated statement of comprehensive income for the
fiscal years ended March 31, 2018 and 2019.
v) Major Customers Information
This information is omitted because there is no major external customer from which revenue accounts
for 10% or more of the revenue recorded in the consolidated statement of comprehensive income forthe fiscal years ended March 31, 2018 and 2019.
Earnings per Share
Basic earnings per share for the fiscal years ended March 31, 2018 and 2019, were calculated asfollows:
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

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

11,025

11,559Weighted-average number of ordinary shares outstanding(Thousands of shares)

112,921112,879

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

97.63

102.40(Note)

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

Significant Events after the Reporting Period
No items to report- 19 -