ITOCHU ENEX CO., LTD.
(TSE Prime, 8133)

Financial Results(FY2021)
May 13, 2022

Copyright©2020 ITOCHU ENEX CO.,LTD. All rights reserved.
Copyright©2022
ITOCHUENEX CO.,LTD.
All rights
reserved.
Copyright©2020
ITOCHUENEX CO.,LTD.
All rights
reserved.

Note
We pay close attention to the content of the material, but the Company and information providers will not be liable
for any damage caused by errors in the information posted or damage suffered based on the information posted inthis material.
The current plans and strategies of the Company posted in this material are forecasts prepared by the Company
based on information currently available, and these future forecasts include risks and uncertainties. Accordingly, theactual results may differ materially from the forecasts posted. Please note that the Company does not guarantee
the certainty of these forecasts.
・Unless otherwise noted, all the numerical values in this material are based on the International Financial ReportingStandards (IFRS).
・In this material, the notation has been replaced as follows.
“Profit from operating activities”  “Operating profit”“Net profit attributable to Itochu Enex’s shareholders” “Net profit”

Copyright©2020 ITOCHU ENEX CO.,LTD. All rights reserved.
Copyright©2022 ITOCHU ENEX CO.,LTD. All rights reserved.

1

Results Highlights

Overview of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
■ Net profit increased 1 billion yen to 13.2 billion yen, up 8.4% year on year.

■Profit increased mainly due to the impact of inventory valuation factors associated with higher LP gas importprices and valuation gains from making mega solar power plants subsidiaries of the Company, despite theabsence of temporary revenue from operations that captured crude oil price fluctuations in the previous fiscal
year, and profit for the fiscal year under review reached a record high for the seventh consecutive year.

Net sales

936.5 billion yen

Grossprofit83.6 billion yen(+26.7% year on year)(-3.8% year on year)

Operatingprofit20.9 billion yen

Net profit

13.2 billion yen(+8.2% year on year)(+8.4% year on year)

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2

Contents

1. Overview of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(1) Overview of the Entire Company(2) Overview by Segment

2. Progress on Medium-Term Business Plan
3. By Segment/FY2022 Management Policy
4. Initiatives for New Businesses◇ Appendix
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3

Overview of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(1) Overview of the Entire Company

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4

Summary of Financial Results for FY2021
Net profit marked a record high for the seventh consecutive year.
FY2020 Results

FY2021 Results

Net sales

7,391

9,365

+1,975Gross profit

869

836

-33

Selling, general and administrative expenses

-671

-681

-10

Operating profit

193

209

16

Share of profit (loss) of investments
accounted for using the equity method

17

24

+7

Net profit

122

132

+10

(100 million yen)

Changes

FY2021 Plan

77.2%

81.4%

+4.2ptDividends (yen/share)

50

48

-2

Ordinary dividends

44

48

+4

Commemorative dividends

6

ー

ー

Ratio of SG&A expenses to gross profit❏ Net profit increased 1 billion yen to 13.2 billion yen, up 8.4% year on year.
Profit increased mainly due to the impact of inventory valuation factors associated with higher LP gas import prices and valuation gains from making mega
solar power plants subsidiaries of the Company, despite the absence of temporary revenue from operations that captured crude oil price fluctuations in theprevious fiscal year, and profit for the fiscal year under review reached a record high for the seventh consecutive year.
❏ The annual dividend is expected to rise 4.00 yen from that for the previous year, to an ordinary dividend of 48 yen per share, excluding a commemorative
dividend of 6.00 yen per share.

Achievement rate

9,000*

104%

205

102%

125

106%

* The full-year consolidated earnings forecast for net sales was revised to 900
billion yen from an initial forecast of 800 billion yen on January 31, 2022.

[Reference] Quarterly results (net profit)

58
36

27

33

26 27 2919

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2020
FY2021
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5

Net Profit by Segment(100 million yen) FY2019

Results

FY2020Results

FY2021Results

Major factors for increase/ decrease

150

130

110

121
21

90

122

132
28

17

41

40

70

Profit remained at the level of the previous year overall, given the significant effect of a decrease
in retail margins in the CS business, despite a rise in profitability per unit in the car dealer
business.

▋Industrial Business (YoY: -¥600 million, Percent of the plan achieved: 125%)

20

39

33

30

Profit decreased, as an increase in profit in the asphalt business was offset by the absence of thetemporary earnings from operations in response to fluctuations in crude oil prices as well as
financial income in the previous fiscal year.

▋Power & Utility (YoY: +¥800 million, Percent of the plan achieved: 89%)
35

10

-10

Profit increased chiefly due to a recovery in the industrial gas business, reflecting the resumptionof normal economic activity and the effect of inventories given a rise in import prices of LP gas.

▋Car-Life (YoY: -¥100 million, Percent of the plan achieved: 105%)46

50▋Home-Life (YoY: +¥1,000 million, Percent of the plan achieved: 110%)

-2

27
-1

35

Profit increased due to valuation gains from making mega solar power plants subsidiaries of theCompany, despite narrower electricity retail margins due to higher procurement prices caused bysurging resource prices.

-3
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6

Analysis of Net Profit by Segment(100 million yen)▋Home-Life
Major factors
for increase/decrease

121.7

Effect of inventories+14.0
Overseas business+0.9
Industrial gas business +1.2
Other
-5.8

▋Car-Life
Dealer business
Oil business, etc.

+1.0
-1.8

▋Industrial
Business
Asphalt
Exports/imports ofproducts
Marine fuel
Fuel cards, etc.
Other

+6.7
-12.6
-1.1
-1.0
+1.9

▋Power &Utility
Provision of heat
+1.4
Electricity sales-15.0
Development projects andothers+21.7▋OtherExpenses

-1.3

+8.1

+10.3
-0.8

-6.1

131.9
-1.3

+10.2
FY2020 Results

FY2021 Results
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7

Financial Position
Assets increased as a result of making mega solar power plants the Company's subsidiaries❏ Total assets: Increased 38.7 billion yen from the end of the previous year, to 447.0
billion yen, reflecting increases in trade receivables/trade payables
associated with an increase assets, the result of making solar power
plants the Company's subsidiaries and a rise in crude oil and CP prices,among other factors.
❏ Shareholders' equity:
Increased 8.1 billion yen, to 144.3 billion yen, mainly reflecting a rise in
net profit.
❏ Net DER:

Net DER increased due to a rise in loans payable.

(100 million yen)

End of March
2021 Results

End of March2022 Results(100 million yen)(Times)

5,000

0.3

4,470

4,500

4,083

0.2

4,000

3,500
0.1

3,000
Changes

2,500

Total assets

4,083

4,470

+387

-174

-52

+122

1,000

Shareholders’ equity

1,362

1,443

+81

500

Ratio of shareholders’equity to net assets
Net DER

33.4%

32.3%

-1.1pt

0
-500

-0.13

-0.04

+0.09

1,443

1,362

1,500

Net interest-bearing
debt

0

-0.04

2,000

-0.1

-0.13
-0.2

-174

-52

End of March 2021

End of March 2022

Total assets

Net interest-bearing debt

Shareholders’ equity

Net DER-0.3

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8

Cash Flows
Continued to create ample cash flows from operating activities, and cash outflows due toinvestment in growth increased
FY2018 Results(100 million yen)

FY2019 Results

FY2020 Results

FY2021 Results

Cash flows from operating activities

254

281

402

400

Cash flows from investing activities

-134

-14

-1

-191

(Free cash flows)

120

267

401

208

Cash flows from financing activities

-159

-262

-245

-176

193

365

329

338

Substantive cash flows
Substantive operating cash flows (*)(*) Operating CF – Increase/decrease in working capital(100 million yen)

500
400
Operating CF

300

Investing CF

200

Financing CF

100

FCF
Substantive
operating CF

254

402

329
400

281

208

120
-134

-159

FY2018Results

-1

-14

-191
-262

-200
-300

338

267

193

0
-100

401

365

FY2019Results-176-245
FY2020Results

FY2021Results

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9

Investment Trends
Acquired full equity interests in mega solar equity-method
affiliates in the Power & Utility business(100 million yen)

400

(100 million yen)

Investment Results (Company-wide)

Investment results for the FY2021 by segment

160
350

138

140
120

300

100
80

250

222

60

39

40

200

36
7

20
150

2

0
Home-Life

244

223

100

134
50

0
FY2016(Full year)

FY2017(Full year)

FY2018(Full year)

FY2019(Full year)

FY2020(Full year)

Industrial
Business

Power & Utility

OthersMajor investment results

186

164

Car-Life

FY2021(Full year)▋Home-Life

Acquisition of business rights, renovation of LPG filling
stations, LPWA, etc.

▋Car-Life

Renovation of CS, renovation of dealer stores, etc.

▋Industrial Business

Saitama AdBlue plant, renovation of petroleum terminals, etc.

▋Power & Utility

Development-related, renovation of heat supply facilities,
renovation of power plants, etc.

▋Common

Digitization-related,etc. ITOCHU ENEX CO.,LTD. All rights reserved.
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10

FY2021 Shareholder Returns

The Company plans to pay a year-end dividend of 25 yen per share,making an annual dividend of 48 yen per share.
60

Commemorative
dividends

50

50

48

6
40

30

20

20

10

Commemorative
dividends

40

4
16

16

42

44

44

48

32
16

16

20

22

Continue stablepayment

Consolidated
dividend payout
ratio

40% or more

Providing shareholder returns
stably under the dividend policy of
ensuring the dividend payout ratio
at 40% or more

24

For FY2021, the annual dividend is
expected to be 48 yen per share

0
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Dividend
payout ratio（%）

Dividend policy

42.7

58.6

46.8

32.4

30.5

45.2

36.3

34.8

41.0

41.0

41.2

46.4

41.1

(Increase of 4.00 yen in an ordinary dividend pershare from that for the previous year excluding acommemorative dividend of 6.00 yen per share)
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11

(Reference) Market Trends

Crude oil and CP prices have been on the rise since they bottomed
out in April of the previous year
FY2021

FY2020Trends in Dubai crude oil price
66.31

62.89

30.47

20.39

2021/42021/5

71.57

72.90

40.79

43.28

Average price($/bbl)
69.49

72.61

43.99

41.5

80.28

81.59
40.66

73.19
49.82

43.39

83.46
54.77

110.89102.79

64.41

62.89

92.34
60.86

78.13
44.53
Change from theprevious year: +33.6

2021/62021/7

Trends in propane CP price
620

560

495

530

230

340

350

2021/42021/52021/62021/82021/92021/102021/112021/122022/12022/22022/3

Average price($/MT)
660

665

800

360

365

365

375

2021/72021/82021/92021/10

Electricity wholesale transactions market

2022/4

870

430

795

740

450

550

895

775
605

625

940

700
560

420
Change from theprevious year: +280

2021/112021/122022/12022/22022/32022/4

Average price(Yen/KWh)

63.07

6.69

6.74

5.24

4.18

2021/42021/5

7.12

8.05

8.58

7.91

5.01

4.31

7.04

6.31

2021/62021/72021/82021/912.06
5.05
2021/1018.47
5.56
2021/11

17.35

21.94

13.93
2021/122022/1

Change from theprevious year: +2.30

20.64

26.19

7.50

6.64

6.69

2022/22022/32022/4

17.76

13.45
11.15

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12

Overview of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(2) Overview by Segment

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13

Results by Segment
FY2021 Plan

Achievementrate

FY2021 Results

Net sales
Operating profit
Net profit

7,391
193
122

9,363
209
132

+1,972
+16
+10

+26.7
+8.2
+8.4

9,000*
205
125

104%
102%
106%

▋Home-Life

Net sales
Operating profit
Net profit

790
16
17

940
26
28

+150
+11
+10

+19.0
+69.7
+59.8

―
―
25

―
―
110%

▋Car-Life

Net sales
Operating profit
Net profit

4,146
76
41

5,167
77
40

+1,020
+1
-1

+24.6
+0.7
-2.0

―
―
38

―
―
105%

▋Industrial BusinessNet sales
Operating profit
Net profit

1,608
50
39

2,245
47
32

+637
-3
-6

+39.6
-6.7
-15.7

―
―
26

―
―
125%

▋Power & Utility

Net sales
Operating profit
Net profit

847
52
27

1,011
62
35

+164
+10
+8

+19.4
+18.4
+30.5

―
―
39

―
―
89%

Company-wide

Changes

Rate ofchange %FY2020 Results(100 million yen)

* The full-year consolidated earnings forecast for net
sales was revised to 900 billion yen from an initial
forecast of 800 billion yen on January 31, 2022.
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14

▋Home-Life
Profit increased due to the effect of inventories reflecting rising LP gas import prices.

(100 million yen)

FY2020 Results

FY2021 Results

Changes

Major factors for increase/ decrease

Gross profit

204

217

+13

Selling, general andadministrative expenses

-188

-192

-4

Operating profit

16

26

+11

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

14

20

+6

Net profit

17

28

+10

Quarterly results (net profit)

Profit (loss) ofmajor affiliates

13
11

9

7

4

2

-2

2

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2020
FY2021

The number of customers under direct contract rose
5,000 from the end of the previous fiscal year, toapprox. 557,000. For LP gas sales volume, demand
for gas for business and industrial use wasrecovering. The overall sales volume slightly
decreased from the year-ago level, reflecting
decreases in wholesale sales and sales of gas forautomobile use. Profit increased chiefly due to arecovery in the industrial gas business, reflecting theresumption of normal economic activity and theeffect of inventories given a rise in import prices of
LP gas.

FY2020Results

FY2021Results

Changes

ITOCHU ENEX HOMELIFE NISHI-NIHON

5

7

+2

ECORE (The Company’s
equity 51%)78ENEARC (The Company’s
equity 50%)79Number of customers(1,000)

Achievementrate

FY2021 Plan

25

110%

End of March 2021

End of March 2022

ChangesNumber of customers under
direct LP gas supply
contracts

552

557

+5

+1

Number of customers forelectricity retail

109

118

+9

+1

Sales volumes

FY2020
Cumulative results

FY2021
Cumulative results

Changes

487

474

-3%

LP gas (thousand tons)

Industrial gas (thousand tons)
65
67
+2%
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15

▋Car-Life
Profit remained at the level of the previous year due to a decrease in oil retail margins, although thestrong performance of the car dealer business contributed.
(100 million yen)

FY2020 Results

FY2021 Results

Changes

Major factors for increase/ decrease

Gross profit

468

464

-4

Selling, general andadministrative expenses

-392

-387

+4

76

77

+1

1

1

+0

41

40

-1

Operating profit
Share of profit (loss) ofinvestments accounted forusing the equity method
Net profit

Quarterly results (net profit)

13 11

13 12

10
6

7

8

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2021
FY2020

Profit (loss) ofmajor affiliates
ENEX FLEETOsaka Car Life Group(The Company’s equity 51.95%)

FY2020Results

20
8

The number of filling stations decreased by 51 fromthe end of the previous fiscal year to 1,636. The
sales volume of kerosene fell year on year, while
demand for gasoline and diesel oil increased chiefly
due to the resumption of normal economic activity.
The overall sales volume of oil products slightly
increased year on year. The number of new cars
sold decreased year on year due to the spread of
COVID-19 and effect of semiconductor shortages.
Profit remained at the level of the previous year
overall, given the significant effect of a decrease inretail margins in the CS business, despite a rise inprofitability per unit in the car dealer business.
FY2021Results

16
9

Changes-4+1

Sales volumes

Achievementrate

FY2021 Plan38
FY2020Results

FY2021Results

105%
Changes

Gasoline (thousand KL)

1,668

1,686

+1%

Kerosene (thousand KL)

373

353

-6%

Diesel oil (thousand KL)

2,010

2,070

+3%

New cars (thousand units)

25

25

-0%

Used cars (thousand units)

22

20

-7%

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16

▋Industrial BusinessProfit decreased year on year due to the absence of temporary earnings, etc.,
but the asphalt business recovered.
(100 million yen)

FY2020 Results

FY2021 Results

Changes

Major factors for increase/ decrease

Gross profit

94

84

-10

Selling, general andadministrative expenses

-41

-48

-7

Operating profit

50

47

-3

1

0

-1

39

32

-6

Share of profit (loss) ofinvestments accounted forusing the equity method
Net profit

Quarterly results (net profit)

15

7

7

9

9

The sales volume in the asphalt business decreased
year on year due to comprehensive measures toensure profitable sales. Sales volume in the marine
fuel business was also down year on year, as the
supply of fuel for inland vessels for new routes ofexisting customers was offset by a decrease in the
supply of fuel for ocean going vessels. The sales
volume of corporate fleet refueling cards increased
year on year, reflecting activities to find newcustomers. Profit decreased, as an increase in profit
in the asphalt business was offset by the absence ofthe temporary earnings from operations in response
to fluctuations in crude oil prices as well as financial
income in the previous fiscal year.

Sales volumes

8

10

6

Achievementrate

FY2021 Plan26
FY2020Results

FY2021Results

125%
Changes

Gasoline (thousand KL)

702

808

+15%

Kerosene (thousand KL)

525

512

-2%

Diesel oil (thousand KL)

1,146

1,205

+5%

Heavy fuel oil (thousand KL)

2,241

1,864

-17%

309

294

-5%

Asphalt (thousand tons)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2020
FY2021
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17▋Power & Utility Division
Profit increased due to valuation gains from making mega solar power plants
the Company's subsidiaries, despite a decline in electricity retail margins.
(100 million yen)

FY2020 Results

FY2021 Results

Changes

Major factors for increase/ decrease

Gross profit

103

71

-32

Selling, general andadministrative expenses

-50

-51

-1

Operating profit

52

62

+10

2

3

+1

27

35

+8

Share of profit (loss) ofinvestments accounted forusing the equity method
Net profit

Quarterly results (net profit)

Profit (loss) of majoraffiliates
ENEX Electric Power Group29

ENEX LIFE SERVICE

11

6

6

3 10 8

Tokyo Toshi Service
Company(The Company’s equity 66.6%)-11

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2021
FY2020Oji-Itochu Enex power
retailing Co., Ltd.
(The Company’s equity 60.0%)

Among electricity retail sales, high-voltage powersales volume increased year on year due to thewinning of large projects. Low-voltage power sales
volume increased year on year with a rise in thenumber of contracts, mainly for household use.
Demand in the heat provision business slightly
declined year on year due to a far lower averagetemperature in the summer than the year-ago level.
Profit increased due to valuation gains from making
mega solar power plants subsidiaries of theCompany, despite narrower electricity retail margins
due to higher procurement prices caused by surging
resource prices.
FY2021
Cumulative
results

Changes

12

5

-8

4

3

-2

FY2020Results

6

7

+2

7

5

-3

Sales volumes

Achievementrate

FY2021 Plan

39
FY2020Results

FY2021Results

89%
Changes

Electricity Retail (GWh)*

2,191

2,472

+13%

Sales of highvoltages

1,560

1,781

+14%

Sales of low
voltages

631

691

+10%

Steam (thousand tons)

536

475

-11%

1,249

1,229

-2%

Breakdown

Heat quantity (TJ)

* Electricity retail, which has been calculated based on preliminary data, includes agency quantity.
* Actual sales volumes for FY2021, which have been recalculated, are different from those in theprevious year's supplementary presentation materials.

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18

2. Progress on Medium-Term Business Plan

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19

Medium-Term Business Plan, SHIFT! 2022
■ Period: Two years from April 2021 to March 2023

Basic Policy
Maintaining andexpandingbases
Quantitative Plan
Target Consolidated Results

FY2021

FY2022

Net profit¥12.5 billion¥13.0 billion

ROE

9.0% or more

9.0% or more

Deepening theenvironment& energy
businesses

Management Indicators (FY2021-FY2022)

Consolidated dividend
payout ratio

40% or more

Substantive operating CF¥30.0 billion each fiscal period

Investment (2-year total)¥60.0 billion

Cultivatingnext-generation

human
resources- Further enhancement of domestic sale network andcustomer base
- Active promotion of B-to-C business utilizing digitaltransformation- Strengthening of overseas business developmentwith a focus on Asia
- Forays into untapped areas with environmental
products, electricity and various other forms of energy- Further expansion of the electric power business fromgeneration to selling, especially with renewableenergy- Enhancing environmental technical capabilities andexpand offerings of low-carbon and decarbonizedproducts- Cultivating multi-talened human resources who will
flourish in Japan and overseas- Promoting diversity and fostering a diverse range ofvaluesCopyright©2020 ITOCHU ENEX CO.,LTD. All rights reserved.
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20

Quantitative Plan/Progress Status
Plan

Results
Achieved the plan

Net profit¥12.5 billion¥13.2 billion(Record high profit for the seventh
consecutive year)

ROE

9.0% or more

9.4%

Achieved the plan

Achieved the plan

Consolidated dividend
payout ratio

40% or more

41.1%

(Increase of 4.00 yen in annual
ordinary dividend per share)

Substantive operatingCF¥30.0 billion
each fiscal period¥33.8 billion

Achieved the plan

Investment(2-year total)¥60.0 billion¥22.2 billion

Made solar power plants
subsidiaries of the Company(Aiming to achieve the total
investment amount)
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21

Trends in Profit and Changes in the Business Plan
2009/3MediumTermBusinessPlan

2010/3

2011/3

Core&Synergy2010
To the next stage via theimplementation of reforms

2012/3

2013/3

2014/3

2015/3

Core&Synergy2013
Phase II: Pursuit of a New Stagethrough Reform

2016/3Moving2014“Moving!”2017/3

2018/3

2019/32020/3 2021/3

2022/3 2023/3

Moving 2020
HorizonSHIFT! 2022

Moving 2018
Connecting to the
futureMoving 2016
Sowing seeds for
tomorrow ～

200

0.12

180

Net profit

140

7.8%

7.5%
104

5.7%

Quanti100
tativeresults

80
44

40

39

110

116

121

122

9.4%

0.1

132

0.08
0.06

75

71
56

9.6%

9.2%

120

54

9.7%

10.0%

160

60

Record high

9.8%

ROE

0.04

55

39

0.02

20
0

0
2009/3

2010/3

2011/3

2012/3

2013/3

2014/3

2015/3

2016/32017/3

2018/3

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22

SHIFT! 2022 Investment Plan
Investment strategy

SHIFT! 2022
(total planned investment over two years)

2021 Results

2022 Plan

Growth investment
 Renewable energy
 Environmental business Overseas business (M&A + capital
expenditures) Human resources development,
etc.

¥30.0 billion¥9.3 billion¥20.0 billion

Bases (strengthening) Digital IT M&A¥10.0 billion¥3.4 billion¥9.0 billion¥9.5 billion¥9.0 billion¥22.2 billion¥38.0 billion

Bases (maintaining) Renovation of LP gas and CS(Car-Life Station) facilities
 Renovation of power generationand heat supply facilities Car dealers
 Systems, IT investment

Total investment¥20.0 billion¥60.0 billion

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Qualitative Plan/Progress Status
Maintaining and expanding bases■ Entry into Thailand's LP gas market
 Concluded a basic business alliance agreement with WP
Energy, a Thailand-based major LP gas supplier■ Launch of new plans under TERASEL Denki
 Started to offer services highlighted in the plan featuring
the greater savings for heavy electricity users and the newplan featuring use of CO2-free electricity■ Participation in truck painting business In November 2021, ENEX FLEET, a group company,
embarked on a truck body business, specifically a painting
business.

Deepening the environment &energy businesses

Cultivating next-generation
human resources■ Acquisition of a mega solar power facility (large-scale solar
power plant) Acquired all equities in the mega solar facility in Takasaki,
Gunma in November 2021. The acquisition significantly
contributed to the Q3 results due to a gain on valuation (photo)■ Introduction of Japan's first carbon neutral GTL fuel
 Introduced carbon neutral GTL fuel in November 2021.
■ Construction of a new AdBlue ® Plant
 Embarked on a manufacturing business in July 2021
■ Opening of renewable diesel (RD) refueling stations
 In June, stations were used for vehicles that deliver goods
to convenience stores for the first time in Japan. Opened
Japan's first permanent RD refueling station for commercial
trucks in November■ Promoting diversity
 Ms. Iwamoto was appointed as the Company's first
Outside Audit & Supervisory Board Member in June
2021.
(The number of female outside directors increased to
two and that of female managers also rose)
Commencement of the Young Talent Appointment
System■ Developing multi-talented human resources Launched a cross-functional team to share information,
provide information and create businesses on a crossdepartmental basis
Dispatchedpersonnel to overseas continuously (photo)
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3. By segment/FY2022 Management Policy

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▋Home-Life

Management policy for FY2022

Value of business bases~Changing our business bases into new value~50■ Rolling out the retail business model in Asia
◇ Efforts by WP, a business alliance partner, to increase thenumber of stores through the establishment of an Asian modelwith a view to creating many retail stores

Net profit plan and results

40
30
20

26

25

28

26

17

10
0
FY2020
Plan
Results

Plan

FY2021Results■ Refining the retail business model◇ Digitize overall operation process◇ Facilitate migration into a date-driven type business through theuse and utilization of group data
◇ Promote the model to provide solutions for stores

FY2022Plan■ Finding regional revitalization-oriented businesses◇ Transform the Company's LP gas wholesale sales into abusiness base for the development of regional revitalization
businesses■ Changing the industrial gas sales model◇ Implement cross-selling by providing functions such as theinspection of containers to change the industrial gas sales
model.
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26

▋Car-Life

Management policy for FY2022

Creation of CS with an eye
toward the future~Taking on challenges to respond to changes~
Net profit plan and results
41
40
38

50
40

30

42

28

20

10
0
Plan

FY2020Results

FY2021
Plan
Results

FY2022Plan■ Maintaining and expanding the customer base
◇ Continue new business expansion around Car Life Stations(CSs) to increase transactions in the affiliated network.
◇ Step up efforts to sell TERASEL Denki 's electricity to corporateusers◇ Utilize IT and digital technologies to further increase operational
efficiency■ Investing proactively in auto ancillary businesses◇ Expand the business of truck purchasing mainly through Enex
Fleet
◇ Expand the network of the wrecker business and vehicle bodybuilding and repairing/maintenance business◇ Strengthen the car dealer business centered around Nissan
Osaka■ Preparations for the future◇ Promote the use of renewable energy in the auto racing industry◇ Facilitate entry into new business areas on mobility◇ Cultivate overseas business (Enex Fleet Vietnam and IP&E
Palau)
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▋Industrial Business

Management policy for FY2022

Responding to demand for
decarbonization and passing along
solution to the next generation
Net profit plan and results

50

39

40

32
30

24

26

28

■ Full-scale cultivation of environment-related business andpursuit of business opportunities◇ Structure for supplying AdBlue® expanded◇ Organize the supply system of GTL, renewable energy andother fuels and increase sales thereof◇ Enhance the business of LNG bunkering for vessels◇ Create a business dedicated to CO2 reductions by building on
the service of supporting the visualization of CO2■ Increasing the competitiveness and profitability of existing
businesses◇ Digitize the distribution and supply systems◇ Expand business areas by leveraging expertise and knowledge■ Developing and creating new businesses◇ Accelerate efforts in new business development in theenvironmental business area
◇ Facilitate business collaboration proactively through allianceswith companies operating in different industries

20

10

0
Plan

FY2020Results

FY2021
Plan
Results

FY2022Plan

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▋Power & Utility Division

Management policy for FY2022

Power to connect customers
Environmental business for the future
Net profit plan and results
50

40

39

35

35

37

27

30
20

10
0
Plan

FY2020Results

Plan

FY2021Results

FY2022Plan■ Power to connect customers~Serve 500,000 households by human and digital sales activities~◇ Leverage the customer bases built by respective
divisions to offer the Denki service.
◇ Enhance the management system to deal
appropriately with risks related to electricity trading◇ Utilize DX to increase the number of TERASEL Denki users■ Environmental business for the future~Realizing decarbonization and offering economic
advantages simultaneously~◇ Develop a scheme that features the combined use ofrenewable energy (particularly solar power) andrechargeable batteries◇ Step up efforts both in Japan and abroad to promote the TERASELSOLAR◇ Expand the solar sharing business (photovoltaic power generation andagricultural production) on a full-scale basis◇ Start TERASEL CAR SHARE Service◇ Start validation for CO2 reductions and energy efficiency improvements
such as the mixed combustion of coal and biomass fuel at coal-fired
power plants
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29

4. Initiatives for New Businesses

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(1) Solar power[Scheme featuring use in combination with rechargeable batteries]* Develop a scheme that features on the combined use of renewable energy(particularly solar power) and rechargeable batteries[TERASEL SOLAR]* Increase efforts to promote the TERASEL SOLAR, a self-consumption solar power
generation service, to corporate customers(Some of clients that introduced the service)
Solar panels

Expected power
consumption reduction

Expected CO2
emissions reduction

Enex Fleet Nishinomiya CS

97.5 kW

Annual average ofapprox. 31%

Annual average ofapprox. 38.0 tons

SENKO LOGISTICS

172.8 kW

Annual average ofapprox. 33%

Annual average ofapprox. 125.0 tons

KOHNAN Daito Shinden

604.8 kW

Annual average ofapprox. 28%

Annual average ofapprox. 256.0 tons

KOHNAN Niihama

182.16 kW

Annual average ofapprox. 32%

Annual average ofapprox. 71.0 tons

[Solar sharing]* Expand the solar sharing business (solar power generation business and solar powerbased agricultural business) on a full-scale basis
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31

(2) Next-generation marine fuels[Creation of a business to supply LNG fuel to vessels]* The Company worked on the initiative of supplying LNG to vessels with Kyushu
Electric Power Co., Inc., Nippon Yusen Kabushiki Kaisha and Saibugas Co., Ltd., andestablished KEYS Bunkering West Japan Co., Ltd., a joint venture, in February 2022.
* In March 2022, KEYS Bunkering West Japan Co., Ltd concluded an agreement forbuilding its own vessel (an LNG bunkering vessel) with Mitsubishi Shipbuilding Co.,
Ltd. to supply LNG fuel to vessels.
* The company plans to launch the LNG fuel supply business in the spring of 2024.

[Ammonia fuel for ships]* The Company is considering the safety for ships and safety in supply, specifications,
impacts on the Environment and other factors jointly with 34 companies andorganizations with a view to an early social implementation of ammonia fuel.
* The member companies jointly considering common issues such as safety for ships,
safety in supply, specifications for ammonia as a marine fuel and environmental
impact assessment throughout the life cycle.

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32

(3) Hydrogen Business[Consideration of hydrogen refueling stations]* Starting from February 2021, the Company has been considering the establishment of
a hydrogen value chain from the production of low-carbon hydrogen to its use with Air
Liquide Japan and ITOCHU Corporation.
* The Company is considering using the material as fuel and supplying it for large FCV
trucks.
(The Company is in discussion with auto manufacturers and transport companies withrespect to the creation of a hydrogen station model for commercial vehicles thatfeatures quick charging and operation for 24 hours every day.)* The Company is in the process of discussion with device manufacturers and industrial
customers with respect to the development and verification tests of a combustion
system.

[Industrial use]
* The Company is currently considering the creation of business models with respect to,for example, the change of boiler fuel used in its own asphalt bases.

[Participation in urban development]* Participation in Yokohama City's Yokohama Smart Business Association and thecarbon-neutral city initiative (to propose decarbonization actions including the use ofhydrogen in mobility)(Photos are for illustrative purposes only)
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Address Climate Change~The Group's environment-related businesses that contribute to reducing society-wide GHG emissions~

Alternative fuelRenewableenergyElectrificationand energy
savingOthersGTL fuel

Ammonia fuel for ships

Renewable diesel

Hydrogen value chain

LNG (for ships)

SAF(renewable and alternative aviation fuel)Wind power

Biomass power

Solar power

Self-consumption photovoltaic power generation (PPA)

Hydroelectric power generation

Solar power sharing (solar power generation business andsolar power-based agricultural business)

EV /Charging station

Recycling of disposed batteries

Electric vehicle sharing

Sales of LPG and high efficiency equipment

Heat Supply Business

Sales of smart devices

High-grade AdBlue® urea

Fly ashes (recycling of combustion ashes)

Recycled slop oil

Support visualization of CO2 emissions
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Sustainability Policy・ Sustainability issues＊Nov. 2021
Establishment of Sustainability Policy and
Key Issues＊Mar. 2022
Developing a policy to address climate change【Sustainability issues (Materiality)】

Sustainability Policy
The ITOCHU ENEX Group has a mission of delivering energy andservices as a "The Best Partner for Life and Society" and will aim
to improve our corporate value while contributing to thedevelopment of a rich life for people and a sustainable society.

【GHG emissions reduction targets】

・Contributing to a carbon neutral society through our business・Contributing to rich communities through a stable energy supply
・Establishing a governance system stakeholders can rely on

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35

Appendix

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36

Appendix[Reference] Shipments of gasoline and diesel oil in Japan (national statistics)
Weekly shipment volume of gasoline

Recent value

Year ago value

Unit: Thousand kiloliters

1100
1000
900

800
700

822

786
701

720 675

743

600
500

993

942

911

862
736

857

769

800

830

792

746

786

780

744

712

695

821

838

887

858

737

864

853
781

759

839

852

850

801

673
661

785

774

797

826
757

762

755

772

758

572

554

First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of
April
April
May
May
June
June
July
July
AugustAugustSeptember
September
October
OctoberNovemberNovember
December
DecemberJanuary
January
February
February
March
March

Weekly shipment volume of diesel oil Unit: Thousand kiloliters
900
800
700

753
670
671

607

600
500
400
300

595

572

583

546

582

557
495

543

483

533

513

321

637

605

598

541

557

629
385

608

590
437

681
597
589

596
594

617

648

615

610

632
631

442

676

700
661

647

603

638
555

612

631

419

First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of
April
April
May
May
June
June
July
July
AugustAugustSeptember
September
October
OctoberNovemberNovember
December
DecemberJanuary
January
February
February
March
March

* Created based on statistics from Petroleum Association of Japan
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37

Appendix[Reference] Monthly sales volume of LP gas (March to February, national statistics)
Unit: Thousand tons

March
2020

2021

For
householdandbusiness
use

749

764

For cars

41

Total

790

April
Changes

2020

2021

+2%

646

616

31

-24%

29

795

+1%

675

September
2020

2021

For
householdandbusiness
use

401

442

For cars

35

Total

436

May
Changes

2020

2021

-5%

513

522

30

+3%

22

646

-4%

535

October

Changes

2020

2021

+10%

526

509

29

-17%

36

471

+8%

562

June
Changes

2020

2021

+2%

454

494

26

+18%

31

548

+ 2%

485

November

Changes

2020

2021

-3%

616

618

33

-8%

33

542

-4%

649

July
Changes

2020

2021

+9%

451

458

30

-3%

37

524

+8%

488

December

Changes

2020

2021

+0%

828

849

31

-6%

37

649

+0%

865

AugustChanges

2020

2021

+2%

412

405

-2%

33

-11%

35

31

-11%

491

+1%

447

436

-2%

January

Changes

2020

2021

+3%

813

835

37

-0%

29

886

+2%

842

Changes

February

Changes

Total

Year
Last one
Changes before
Changes
year
last

2020

2021

+3%

736

800

+9%

7,145

7,312

+2%

30

+3%

27

26

-4%

392

367

-6%

865

+3%

763

826

+8%

7,537

7,679

+2%

* Created based on statistics from Japan LP Gas Association
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38

Appendix[Reference] Monthly sales of new cars (Standard-sized cars, compact cars andkei (light) cars) (April to March, national statistics)
Unit: Thousand units
April
2020

2021

Standardsized andcompact
cars

145

183

Kei cars

75

Total

220

May
Changes

2020

2021

+26%

124

166

106

+42%

51

289

+32%

175

October
2020

2021

Standardsized andcompact
cars

221

151

Kei cars

154

Total

375

June
Changes

2020

2021

+34%

182

198

96

+89%

102

262

+50%

284

November

Changes

2020

2021

-32%

219

189

103

-33%

159

253

-32%

378

July
Changes

2020

2021

+9%

207

213

99

-3%

123

297

+4%

331

December

Changes

2020

2021

-14%

211

191

133

-16%

136

322

-15%

347

AugustChanges

2020

2021

+3%

169

176

97

-22%

101

309

-6%

270

January

Changes

2020

2021

-9%

208

182

118

-14%

148

309

-11%

356

September
Changes

2020

2021

+4%

252

170

-33%

88

-13%

138

87

-37%

264

-2%

391

257

-34%

February

Changes

2020

2021

-9%

227

185

123

-17%

170

305

-14%

397

Changes

March

Changes

Total
ChangesYear
before
last

285

-14%

2,495

2,287

-8%

229

186

-19%

1,585

1,374

-19%

558

470

-16%

4,080

3,661

-10%

2020

2021

-19%

329

141

-17%

326

-18%

Last one
Changesyear* Compiled based on statistical data issued by the Japan Automobile Dealers Association Japan Light Motor Vehicle and Motorcycle Association
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39

Contact
Investor Relations & Planning Section
Staff：Imaizumi or Nakamura[E-MAIL] enex_irpr@itcenex.com[TEL] +81-3-4233-8025 [FAX] + 81-3-4533-0103

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40