COMPANY RESEARCH AND ANALYSIS REPORT

ITOCHU Enex Co., Ltd
8133
Tokyo Stock Exchange First Section

13-Apr.-2017
FISCO Ltd. Analyst

Hiroyuki Asakawa

FISCO Ltd.
http://www.fisco.co.jp

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/■ Index■ Summary--------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. Posted all-time high results on a quarterly basis in 3Q FY3/17. ...................................................................

01

2. Likely to exceed goals for FY3/17, the final year of the current medium-term business plan. ......................

01

3. Focus on new growth strategies presented in the next medium-term plan. .................................................

01■ Business Overview-------------------------------------------------------------------------------------------------------------------------------------------------- 02
1. Home-Life Division. . ............................... ......................................................................................................

03

2. Power & Utility Division.......................... ......................................................................................................

03

3. Car-Life Division...........................................................................................................................................

03

4. Energy Innovation Division...........................................................................................................................

03■ Business Performance---------------------------------------------------------------------------------------------------------------------------------------- 04
1. Review of 3Q FY3/17 results .......................................................................................................................

04

2. Trends in the Home-Life Division.. .......... ......................................................................................................

05

3. Trends in the Power & Utilities Division.. ......................................................................................................

07

4. Trends in the Car-Life Division.. ....................................................................................................................

09

5. Trends in the Energy Innovation Division. .....................................................................................................

10■ Business Outlook----------------------------------------------------------------------------------------------------------------------------------------------------- 13• Outlook for FY3/17........................................................................................................................................

13■ Longer-Term Growth Strategies----------------------------------------------------------------------------------------------------------------- 17
1. Focus on the content and dynamism of what should be pursued
in the relatively short span of two years. ......................................................................................................

17

2. Look for whether Itochu Enex presents growth strategies organically linked
to the new organizational structure........ ......................................................................................................

17■ Shareholder return policy--------------------------------------------------------------------------------------------------------------------------------- 18

We encourage readers to review our complete legal statement on “Disclaimer” page.

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/██Summary
Itochu Enex Co., Ltd. <8133> (hereafter, also “the Company”) is an energy trade company that is playing a pivotal rolein the energy field for the ITOCHU Corp. <8001> group. It has a broad business scope, though mainly sells petroleum
products and liquefied petroleum (LP; propane) gas to users ranging from industrial businesses to final consumers.
1. Posted all-time high results on a quarterly basis in 3Q FY3/17
Profit from operating activities increased sharply to ¥13,621mn (up 18.2% YoY) in 3Q FY3/17. Gross profit, profit
from operating activities, and net profit attributable to Itochu Enex’s shareholders reached new all-time highs ona quarterly basis. The Power & Utility Division and other divisions steadily expanded earnings, just as through 2Q.
While consumption of petroleum products in Japan is shrinking, the switch to an upward trend in crude oil prices
had a favorable impact.
2. Likely to exceed goals for FY3/17, the final year of the current medium-term business plan
Itochu Enex appears to be capable of beating the FY3/17 outlook in light of upbeat progress through 3Q. Key
positives in 4Q are healthy demand periods for the various businesses of the Company and support from external
conditions with rising LP gas and crude oil prices and stable forex rates. This fiscal year is the final year of the current
medium-term business plan, and Itochu Enex should fulfill the goals.
3. Focus on new growth strategies presented in the next medium-term plan
The next medium-term business plan starting from FY3/18 will define the direction of longer-term growth strategies,
and it will be officially announced in May 2017. In a reorganization taking effect from April 2017, Itochu Enex plansto rename and revamp the Distribution & Energy Innovation Business Group, which covers the Car-Life Division andEnergy Innovation Division, into the Life Energy & Logistics Division and Industrial Energy & Logistics Division. It is
likely to present growth strategies that are organically linked to this reorganization in order to accelerate growth.
Key Points
Posted upbeat 3Q FY3/17 results with profit from operating activities at close to 80% of the full-year target
Likely to exceed full-year targets thanks to favorable external conditions in 4Q, the strong demand period• Scheduled to announce the next medium-term business plan in May 2017, focus on advancement and evolutionof initiatives from the current medium-term plan••

We encourage readers to review our complete legal statement on “Disclaimer” page.

01 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/㻾㼑㼟㼡㼘㼠㼟㻌㼠㼞㼑㼚㼐㼟㻿㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻕㻔¥㼙㼚㻕㻼㼞㼛㼒㼕㼠㻌㼒㼞㼛㼙㻌㼛㼜㼑㼞㼍㼠㼕㼚㼓㻌㼍㼏㼠㼕㼢㼕㼠㼕㼑㼟㻌㻔㼞㼕㼓㼔㼠㻕㻝㻘㻤㻜㻜㻘㻜㻜㻜㻝㻢㻘㻟㻤㻠

㻝㻣㻘㻡㻜㻜

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㻠㻘㻜㻜㻜㻞㻜㻜㻘㻜㻜㻜

㻞㻘㻜㻜㻜

㻜

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㻲㼅㻟㻛㻝㻟

㻲㼅㻟㻛㻝㻠

㻲㼅㻟㻛㻝㻡

㻲㼅㻟㻛㻝㻢

㻲㼅㻟㻛㻝㻣㻌㻱

Source: Prepared by FISCO from the Company’s financial results██Business Overview
Developing operations to meet customer needs with businesses
that range from consumer energy to industrial energy and electricity
Itochu Enex was a major presence in the petroleum products distribution industry as Itochu Fuel Corporation priorto adopting its current name in 2001. It significantly revamped the business structural too during the 2000s with atheme of transitioning from a “fuel trading company” to a “new form of energy company.” It has been shifting thebusiness model from mainly B-to-B in past years to B-to-C.
Itochu Enex currently has an organization with two business groups and four business divisions. The businessdivisions are the Home-Life Division, the Car-Life Division, the Power & Utility Division, and the Energy Innovation
Division. The Home-Life Division and Power & Utility Division come under the Power & Gas Business Group, andthe Car-Life Division and Energy Innovation Division form the Distribution & Energy Innovation Business Group.
Itochu Enex is pursuing efforts to integrate strategy development and accelerate business initiatives. Overview ofthe various business divisions are reviewed below.

We encourage readers to review our complete legal statement on “Disclaimer” page.

02 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Overview

1. Home-Life Division
While the Home-Life Division sells LP gas, supplies city gas, sells industrial gas, operates auto stations for taxis(using LP gas as fuel), and sells solar power systems and other next-generation energy systems, its core businessis selling LP gas. Itochu Enex sells LP gas to about 350,000 households through sales subsidiaries and also sells
on a wholesale basis to about 730,000 households via roughly 1,900 distributors nationwide. A key characteristic of
this business is that the fuel cost adjustment program keeps the spread between the sales prices and raw material
price (contract price; CP), which corresponds to the company’s margin, at a certain level. This means that securing
sales volume is important for earnings.
2. Power & Utility Division
The Power & Utility Division handles the electricity business and heat supply business. The electricity businessprocures electricity from self-generated power using group power facilities and external purchases from partnercompanies and Japan Electric Power Exchange (JEPX) and conducts retail sales to contract customers in thehigh-voltage segment (large-volume customers such as plants and offices) and low-voltage segment (small-volume
customers such as ordinary households and smaller retailers). It also sells electricity on a wholesale basis through
JEPX. Subsidiary Tokyo Toshi Service Company (TTS) runs the heat supply business. It supplies heat utilizing electricheat supply centers located at large buildings and redevelopment areas at 18 sites in the Tokyo metropolitan area.
3. Car-Life Division
The Car-Life Division consists of car-life station (CS; gas stations) operations and car dealer business. In CS
operations, Itochu Enex is unable to avoid an overall trend of steady decline in the number of gas stations nationwide
and hence has been broadening CS business scope to car rentals and used car sales, and is focused on increasing
profitability of its car-life stations. The car dealer business started in May 2014 with the acquisition of Osaka Car-Life
Group Inc. (OCG). Nissan Osaka Sales Co., Ltd. is under OCG, and is the only official Nissan dealer covering Osaka
prefecture (and the Hyogo Prefecture Hanshin area) and a top-class nationwide dealership network.
4. Energy Innovation Division
The Energy Innovation Division is an aggregate of industrial businesses. Specifically, it covers sales of asphalt,
bunker fuel oil, AdBlue (an additive for diesel engines in trucks and other equipment), and industrial fuel (heavy oil).
While this division also faces a difficult business environment of structural decline in domestic petroleum productdemand, Itochu Enex is actively developing new businesses that leverage strengths from existing businesses andfocusing on profitability enhancement with a slogan of “portfolio management.” In recent years, it has launcheda fly ash business (reuse of coal ash) and slop business (reuse of cleaning oil waste recovered from ships) and isdiversifying products, such as corporate electricity sales.

We encourage readers to review our complete legal statement on “Disclaimer” page.

03 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/██Business Performance
Posted upbeat 3Q FY3/17 results with profit from operating activities
at close to 80% of the full-year target
1. Review of 3Q FY3/17 results
Itochu Enex reported cumulative 3Q FY3/17 results with ¥730,108mn in sales (down 12.0% YoY), ¥491,905mn inrevenue (down 11.5%), ¥13,621mn in operating profit (up 18.2%), ¥13,062mn in profit before tax (up 21.3%), and¥6,912mn in net profit attributable to Itochu Enex’s shareholders (up 19.3%). Additionally, 3Q gross profit, profit
from operating activities, and net profit values reached all-time highs for the quarterly level.
Progress rates toward FY3/17 forecast are 68.9% in sales, 77.8% in profit from operating activities, and 76.8% in
profit before tax. These levels exceeded progress in the previous year, confirming upbeat momentum. The resultscannot be compared to cumulative 3Q targets because Itochu Enex only supplies a full-year forecast, but we thinkthey outpaced the internal plan considering the strong progress rates.
Review of 3Q FY3/17 Results(¥mn)
FY3/16

FY3/17

3Q(cumulative)

Full year

3Q(cumulative)

YoY

Progress
rate

Full year(forecast)

YoY

Sales

829,925

1,071,629

730,108-12.0%

68.9%

1,060,000-1.1%

Revenue

555,791

723,645491,905-11.5%---

Gross profit

65,33489,562

67,839

3.8%

-

-

-

SG&A expenses

54,06373,22654,122

0.1%

-

-

-

Profit from operating activities

11,52016,384

13,621

18.2%

77.8%

17,500

6.8%

Profit before tax

10,77315,004

13,062

21.3%

76.8%

17,00013.3%

Net profit attributable to Itochu Enex’s
shareholders

5,791

7,469

6,912

19.3%

69.1%

10,00033.9%

Source: Prepared by FISCO from the Company’s financial results

In profit from operating activities, the Power & Utility Division exhibited the strongest progress at 130.0% and the
Car-Life Division and Energy Innovation Division were healthy too at 77.4% and 65.0% fulfillment levels. While theHome-Life Division was only at 30.6%, earnings are clearly improving in this segment too because it posted higher
profits than in the previous year and net profit attributable to Itochu Enex’s shareholders, which reflects income fromassociates accounted for by the equity method, was up 202.0% YoY.

We encourage readers to review our complete legal statement on “Disclaimer” page.

04 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Performance

Breakdown of 3Q FY3/17 results by business segment(¥mn)
FY3/163Q
Full year(cumulative)
Home-Life Division
68,526
95,126
Power & Utility Division
31,181
43,495
Car-Life Division
408,605
534,156
Energy Innovation Division
321,613398,852
Other
0
0
Sales before adjustments
829,925
1,071,629
Adjustments
Total sales
829,925
1,071,629
Home-Life Division
1,367
3,367
Power & Utility Division
3,743
4,439
Car-Life Division
2,774
4,194
Energy Innovation Division
2,853
3,774
Other
1
1
Profit from operating activities before adjustments
10,73815,775Adjustments
782
609
Total profit from operating activities
11,52016,384
Source: Prepared by FISCO from the Company’s financial results and other materials

FY3/17
Progress
YoY
rate-11.4%
64.1%
46.7%
77.9%
-10.6%
67.8%-19.7%
69.6%-12.0%
68.7%-12.0%
68.9%
12.1%
30.6%
35.5%
130.0%
34.0%
77.4%-13.4%
65.0%
19.1%
73.1%
6.6%
18.2%
77.8%

3Q
(cumulative)
60,72345,752365,287
258,346
730,108
730,108
1,532
5,070
3,716
2,469
12,787834
13,621

Full year
94,70058,700538,400
371,300
1,063,100-3,1001,060,000
5,000
3,900
4,800
3,800
0
17,500017,500

Steady improvement in the business environment
with the higher LP gas price
2. Trends in the Home-Life Division
The Home-Life Division reported ¥60,723mn in sales (down 11.4% YoY), ¥57,584mn in revenue (including inter-segment transactions; same below) (down 12.5%), ¥1,532mn in profit from operating activities (up 12.1%), and ¥418mn
in net profit attributable to Itochu Enex’s shareholders (up 202.0%) in cumulative 3Q. Profit increased on weaker sales.

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Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

05 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Performance

The contract price (CP) for mainstay LP gas sales climbed significantly in 3Q (Oct-Dec 2016). For cumulative 3Q,
however, the sales price was still below the previous-year level during 3Q because of the impact of the strong yen.
Sales hence declined even though sales volume was roughly on par with the previous year.
Changes in inventory value affect income in the Home-Life Division. Inventory coverage includes LP gas inventories
at consolidated sales subsidiaries and inventories at associates accounted for by the equity method that procure LP
gas. CP climbed 28.8% from $295/ton at September to $380/ton at December. The yen-based CIF price increased
substantially too with a 35.8% rise from ¥35,218/ton to ¥47,818/ton. Inventory impact at the end of 3Q, including the
portion at associates accounted for by the equity method, hence improved versus the end of 2Q, and this change
led to a steep increase in net profit attributable to Itochu Enex’s shareholders (+202.0% YoY).

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㻜

Source: Prepared by FISCOCollaboration with the Power & Utility Division is an important theme for the Home-Life Division in FY3/17. Specifically,
Itochu Enex is promoting electricity sales to households that are customers in the Home-Life Division following
the liberalization of electricity retail sales in the low-voltage segment (smaller-volume customers such as ordinary
households) since April 2016. It is aiming to recruit 30,000 contracts by the end of March 2017 and already had
about 26,000 contracts at the end of December 2016. Contract acquisition is clearly exceeding the target paceand has moved into a range that puts Itochu Enex well on track to exceeding its goal. We think this outcome isevidence of success in the strategy of promoting electricity sales by working through the LP gas sales network andsee considerable room for further growth from FY3/18 in light of the overall LP gas customer base (total of about
1.08mn households from direct and indirect customers).

We encourage readers to review our complete legal statement on “Disclaimer” page.

06 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Performance

Retail electricity volume surpassing the medium-term business plan,electricity business likely to drive company earnings
3. Trends in the Power & Utilities Division
The Power & Utilities Division reported ¥45,752mn in sales (up 46.7% YoY), ¥44,060mn in revenue (up 43.5%),¥5,070mn in profit from operating activities (up 35.5%), and ¥2,566mn in net profit (up 35.7%) in cumulative 3Q.
Both sales and profits expanded.

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㻝㻜㻘㻜㻜㻜

㻞㻢㻘㻣㻣㻜

㻞㻤㻘㻟㻣㻠

㻟㻽㻌㻲㼅㻟㻛㻝㻠㻟㻽㻌㻲㼅㻟㻛㻝㻡㻝㻘㻤㻜㻜㻟㻝㻘㻝㻤㻝㻥㻜㻜㻜㻜㻟㻽㻌㻲㼅㻟㻛㻝㻢㻟㻽㻌㻲㼅㻟㻛㻝㻣

Source: Prepared by FISCO from the Company’s financial resultsRetail sales volume in the electricity business substantially exceeded the previous year, driving a steep increase inearnings.
Itochu Enex targeted 2,200GWh in total sales volume, including 1,700GWh in retail sales volume, in FY3/17 in theelectricity sales volume plan for the Moving 2016 current medium-term business plan announced in May 2015 (theplan has already been updated for announced actual values). Sales through 3Q FY3/17, meanwhile, surpassed
the total sales volume and retail sales volume goals. We think pricing, margin, and sales volume are very healthy.

We encourage readers to review our complete legal statement on “Disclaimer” page.

07 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Performance㻱㼘㼑㼏㼠㼞㼕㼏㼕㼠㼥㻌㼟㼍㼘㼑㼟㻌㼢㼛㼘㼡㼙㼑㻘㻌㼣㼔㼛㼘㼑㼟㼍㼘㼑㻘㻌㼍㼚㼐㻌㼞㼑㼠㼍㼕㼘㻌㼟㼍㼘㼑㼟㼃㼔㼛㼘㼑㼟㼍㼘㼑㻌㼍㼚㼐㻌㼛㼚㻙㼟㼕㼠㼑㻌㼟㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻕㻾㼑㼠㼍㼕㼘㻌㼟㼍㼘㼑㼟㻌㼞㼍㼠㼕㼛㻔㻳㼃㼔㻕㻾㼑㼠㼍㼕㼘㻌㼟㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻕
㻣㻣㻑

㻞㻘㻠㻜㻜

㻡㻠㻑

㻝㻘㻤㻜㻜
㻟㻥㻑
㻝㻘㻞㻜㻜

㻢㻜㻜

㻟

㻤㻜

㻞㻝㻑

㻢㻥㻝

㻤㻢㻢

㻢㻝㻣
㻜

㻢㻜㻑
㻝㻘㻣㻜㻜
㻠㻜㻑

㻤㻣㻝
㻞㻟㻝

㻜㻑
㻲㼅㻟㻛㻝㻞

㻠㻜㻥
㻞㻜㻑

㻢㻠㻢

㻣㻠㻡

㻲㼅㻟㻛㻝㻡

㻲㼅㻟㻛㻝㻢

㻝㻜㻑㻲㼅㻟㻛㻝㻟

㻤㻜㻑

㻡㻜㻜
㻜㻑

㻲㼅㻟㻛㻝㻠

㻲㼅㻟㻛㻝㻣㻌㻱

Source: Prepared by FISCO from the Company’s materialsPower source procurement and securing sales channels are essential points in the electricity business. In power
procurement, self-generated wind power recorded larger output than in the previous year. Thermal-fired plant,
however, was lower than in the previous year due to detailed adjustments of nighttime power generation volume
amid lower JEPX retail prices.
Itochu Enex secured about 26,000 contracts in the low-voltage segment by the end of December 2016, as noted
above, thanks to collaboration with group LP gas sales companies and alliances with external PPS companies.
Customer volume in the high-voltage segment also expanded at a healthy pace with increases in retail sales volume
at Itochu Enex itself and subsidiary Oji-Itochu Enex Power Retailing Co., Ltd. (60% owned by Itochu Enex). Sales
results are well above the medium-term business plan as explained earlier.
The launch of “car and electricity collaboration” as a joint effort with Nissan Osaka Sales from the Car-Life Division
is a recent sales initiative. This is a bundling sales program for cars and retail electricity in which customers whopurchase Nissan cars (particularly electric vehicles) receive cheaper electricity rates than usual if they also conclude
eKotodenki contracts (Itochu Enex’s electricity retail brand). It should not have much impact on earnings in the nearterm because the program just started in January 2017. However, we anticipate some benefits in raising awarenessof Itochu Enex and eKotodenki service.
Heat supply demand exceeded previous-year levels owing to a higher average temperature in eastern Japan thanin normal years during the summer and lower average temperatures than the previous year in the fall and winter.
Profit increased YoY thanks to a decline in raw material costs.

We encourage readers to review our complete legal statement on “Disclaimer” page.

08 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Performance

Increase in segment profit as upbeat salesat Nissan Osaka Sales offset weakness in CS business4. Trends in the Car-Life Division
The Car-Life Division reported ¥365,287mn in sales (down 10.6% YoY), ¥338,216mn in revenue (down 11.7%),¥3,716mn in profit from operating activities (up 34.0%), and ¥1,701mn in net profit attributable to Itochu Enex’s
shareholders (up 25.1%) in cumulative 3Q. Profit increased on weaker sales.

㻾㼑㼟㼡㼘㼠㼟㻌㼠㼞㼑㼚㼐㼟㻌㼕㼚㻌㼠㼔㼑㻌㻯㼍㼞㻙㻸㼕㼒㼑㻌㻰㼕㼢㼕㼟㼕㼛㼚㻔¥㼙㼚㻕㻿㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻕㻼㼞㼛㼒㼕㼠㻌㼒㼞㼛㼙㻌㼛㼜㼑㼞㼍㼠㼕㼚㼓㻌㼍㼏㼠㼕㼢㼕㼠㼕㼑㼟㻌㻔㼞㼕㼓㼔㼠㻕㻢㻜㻜㻘㻜㻜㻜

㻟㻘㻣㻝㻢㻡㻜㻜㻘㻜㻜㻜

㻠㻘㻞㻜㻜

㻟㻘㻡㻜㻜
㻞㻘㻣㻣㻠

㻞㻘㻣㻜㻣
㻠㻜㻜㻘㻜㻜㻜

㻞㻘㻤㻜㻜㻟㻜㻜㻘㻜㻜㻜
㻞㻜㻜㻘㻜㻜㻜

㻔¥㼙㼚㻕

㻞㻘㻝㻜㻜
㻠㻠㻤㻘㻜㻝㻣

㻠㻤㻥㻘㻣㻠㻡
㻠㻜㻤㻘㻢㻜㻡

㻟㻢㻡㻘㻞㻤㻣

㻝㻜㻜㻘㻜㻜㻜

㻝㻘㻠㻜㻜
㻣㻜㻜

㻜

㻜
㻟㻽㻌㻲㼅㻟㻛㻝㻠㻟㻽㻌㻲㼅㻟㻛㻝㻡㻟㻽㻌㻲㼅㻟㻛㻝㻢㻟㻽㻌㻲㼅㻟㻛㻝㻣

Source: Prepared by FISCO from the Company’s financial resultsIn the CS business, which is one of the division’s two core businesses, sales volume declined YoY because ofongoing contraction of domestic fuel oil (gasoline and diesel) demand in Japan. Group CS volume had a net declineof 48 sites in cumulative 3Q, dropping to 1,925 sites as of the end of December 2016, amid continued eliminationof sites with aging facilities and unprofitable sites.
Furthermore, fuel oil prices remain at low levels. The price of gasoline, the mainstay product, was below previous-year levels as an absolute value despite an upward trend during 3Q. Sales volume and unit price both missed
previous-year levels, and these trends were sources of the YoY decline in Car-Life Division sales.

We encourage readers to review our complete legal statement on “Disclaimer” page.

09 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd

13-Apr.-2017

8133 Tokyo Stock Exchange First Section

http://www.itcenex.com/english/ir/

Business Performance㻳㼍㼟㼛㼘㼕㼚㼑㻌㼜㼞㼕㼏㼑㻌㼠㼞㼑㼚㼐㻌㻔㻶㼍㼚㼡㼍㼞㼥㻌㻞㻜㻝㻟㻌㼠㼛㻌㻶㼍㼚㼡㼍㼞㼥㻌㻞㻜㻝㻣㻕㻔¥㻛㻸㻕㻾㼑㼓㼡㼘㼍㼞㻌㼓㼍㼟㼛㼘㼕㼚㼑㻌㼣㼔㼛㼘㼑㼟㼍㼘㼑㻌㼜㼞㼕㼏㼑㻾㼑㼓㼡㼘㼍㼞㻌㼓㼍㼟㼛㼘㼕㼚㼑㻌㼞㼑㼠㼍㼕㼘㻌㼜㼞㼕㼏㼑

㻝㻤㻜
㻝㻣㻜

㻝㻢㻜
㻝㻡㻜
㻝㻠㻜

㻝㻟㻜㻚㻥

㻝㻟㻜

㻝㻞㻜
㻝㻜㻣㻚㻞

㻝㻝㻜
㻝㻜㻜
㻥㻜

Source: Prepared by FISCO㻶㼍㼚㻚㻙㻝㻣

㻺㼛㼢㼑㼙㼎㼑㼞

㻿㼑㼜㼠㼑㼙㼎㼑㼞

㻹㼍㼥

㻶㼡㼘㼥

㻹㼍㼞㼏㼔

㻶㼍㼚㻚㻙㻝㻢

㻺㼛㼢㼑㼙㼎㼑㼞

㻿㼑㼜㼠㼑㼙㼎㼑㼞

㻹㼍㼥

㻶㼡㼘㼥

㻹㼍㼞㼏㼔

㻶㼍㼚㻚㻙㻝㻡

㻺㼛㼢㼑㼙㼎㼑㼞

㻿㼑㼜㼠㼑㼙㼎㼑㼞

㻹㼍㼥

㻶㼡㼘㼥

㻹㼍㼞㼏㼔

㻶㼍㼚㻚㻙㻝㻠

㻺㼛㼢㼑㼙㼎㼑㼞

㻿㼑㼜㼠㼑㼙㼎㼑㼞

㻹㼍㼥

㻶㼡㼘㼥

㻹㼍㼞㼏㼔

㻶㼍㼚㻚㻙㻝㻟

㻤㻜

Itochu Enex is putting efforts into reinforcement of “non-fuel oil sales” as an effort to counter headwind in the CS
business. Specifically, it launched Car-Life Stadium as a new service brand with car rental, car buying, and car sales
businesses. Efforts are being made to expand the car wash business too. Member stores for the Japan Car Wash
Federation (for corporate customers), which subsidiary ENEXAUTO Co., Ltd. manages as the secretariat, expanded
to 2,107 locations, and this business is also promoting use of the “Sensya Senka” car-washing information site by
the general public.
Contributions from the car dealer business at Nissan Osaka Sales enabled the Car-Life Division to achieve a profit
increase (YoY) in cumulative 3Q FY3/17. While the falsification incident at Mitsubishi Motors Corporation <7211>
heavily affected minicar sales in 1H, Nissan Osaka Sales increased profit because of reinforced sales of Serena,Note, and other models and contributions from services.

Starting new businesses and other advancesin portfolio management
5. Trends in the Energy Innovation Division
The Energy Innovation Division reported ¥258,346mn in sales (down 19.7% YoY), ¥54,295mn in revenue (down
32.3%), ¥2,469mn in profit from operating activities (down 13.4%), and ¥1,753mn in net profit attributable to Itochu
Enex’s shareholders (down 7.1%) in cumulative 3Q. Both sales and profits declined.

We encourage readers to review our complete legal statement on “Disclaimer” page.

10 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Performance㻾㼑㼟㼡㼘㼠㼟㻌㼠㼞㼑㼚㼐㼟㻌㼕㼚㻌㼠㼔㼑㻌㻱㼚㼑㼞㼓㼥㻌㻵㼚㼚㼛㼢㼍㼠㼕㼛㼚㻌㻰㼕㼢㼕㼟㼕㼛㼚㻿㼍㼘㼑㼟㻌㻔㼘㼑㼒㼠㻕㻔¥㼙㼚㻕㻼㼞㼛㼒㼕㼠㻌㼒㼞㼛㼙㻌㼛㼜㼑㼞㼍㼠㼕㼚㼓㻌㼍㼏㼠㼕㼢㼕㼠㼕㼑㼟㻌㻔㼞㼕㼓㼔㼠㻕㻞㻘㻤㻡㻟㻢㻜㻜㻘㻜㻜㻜

㻔¥㼙㼚㻕

㻟㻘㻜㻜㻜
㻞㻘㻠㻢㻥

㻡㻜㻜㻘㻜㻜㻜

㻞㻘㻡㻜㻜
㻝㻘㻤㻠㻣

㻠㻜㻜㻘㻜㻜㻜

㻞㻘㻜㻜㻜㻟㻜㻜㻘㻜㻜㻜

㻝㻘㻡㻜㻜㻡㻞㻤㻘㻞㻞㻝

㻞㻜㻜㻘㻜㻜㻜

㻠㻢㻡㻘㻞㻠㻞

㻝㻘㻜㻜㻜㻟㻞㻝㻘㻢㻝㻟

㻝㻜㻜㻘㻜㻜㻜

㻞㻡㻤㻘㻟㻠㻢㻜㻡㻜㻜㻜㻟㻽㻌㻲㼅㻟㻛㻝㻠㻟㻽㻌㻲㼅㻟㻛㻝㻡㻟㻽㻌㻲㼅㻟㻛㻝㻢㻟㻽㻌㻲㼅㻟㻛㻝㻣

Source: Prepared by FISCO from the Company’s financial resultsWhile sales were still down by a double-digit rate, the decline narrowed from the level seen through 1H (25.8%).
Revisions of inefficient transactions and a slump in the crude-oil price have been primary sources of weaker sales.
However, we think recovery in the crude-oil price to the $40/barrel range since May 2016 and accelerated gains in
3Q (Oct-Dec 2016) helped narrow the decline rate.

㻔㼁㻿㻰㻛㼎㼍㼞㼞㼑㼘㻕㻰㼡㼎㼍㼕㻌㼏㼞㼡㼐㼑㻌㻔㼙㼛㼚㼠㼔㼘㼥㻌㼍㼢㼑㼞㼍㼓㼑㻌㼜㼞㼕㼏㼑㼟㻌㼁㻿㻰㻛㼎㼍㼞㼞㼑㼘㻕㻝㻞㻜㻚㻜㻜
㻝㻜㻜㻚㻜㻜
㻤㻜㻚㻜㻜
㻡㻟㻚㻠㻟

㻢㻜㻚㻜㻜
㻠㻜㻚㻜㻜

㻞㻜㻚㻜㻜

㻶㼍㼚㻚㻙㻝㻠
㻲㼑㼎㼞㼡㼍㼞㼥
㻹㼍㼞㼏㼔
㻭㼜㼞㼕㼘
㻹㼍㼥
㻶㼡㼚㼑
㻶㼡㼘㼥
㻭㼡㼓㼡㼟㼠
㻿㼑㼜㼠㼑㼙㼎㼑㼞㻻㼏㼠㼛㼎㼑㼞
㻺㼛㼢㼑㼙㼎㼑㼞
㻰㼑㼏㼑㼙㼎㼑㼞
㻶㼍㼚㻚㻙㻝㻡
㻲㼑㼎㼞㼡㼍㼞㼥
㻹㼍㼞㼏㼔
㻭㼜㼞㼕㼘
㻹㼍㼥
㻶㼡㼚㼑
㻶㼡㼘㼥
㻭㼡㼓㼡㼟㼠
㻿㼑㼜㼠㼑㼙㼎㼑㼞㻻㼏㼠㼛㼎㼑㼞
㻺㼛㼢㼑㼙㼎㼑㼞
㻰㼑㼏㼑㼙㼎㼑㼞
㻶㼍㼚㻚㻙㻝㻢
㻲㼑㼎㼞㼡㼍㼞㼥
㻹㼍㼞㼏㼔
㻭㼜㼞㼕㼘
㻹㼍㼥
㻶㼡㼚㼑
㻶㼡㼘㼥
㻭㼡㼓㼡㼟㼠
㻿㼑㼜㼠㼑㼙㼎㼑㼞㻻㼏㼠㼛㼎㼑㼞
㻺㼛㼢㼑㼙㼎㼑㼞
㻰㼑㼏㼑㼙㼎㼑㼞
㻶㼍㼚㻚㻙㻝㻣

㻜㻚㻜㻜

Source: Prepared by FISCO

We encourage readers to review our complete legal statement on “Disclaimer” page.

11 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Performance

The Energy Innovation Division continued to pursue suitable and functional utilization of business assets and topromote new business opportunities in 3Q, in line with an existing policy of expanding “portfolio management.”
Specific examples are beginning sales to smaller-volume customers in the industrial fuel sales business, establishingintegrated production and sales in the AdBlue business utilizing 20 supply sites and 10 alliance plants nationwide,and selling electricity to corporate customers of various sales divisions. Itochu Enex started fly ash, slop, and sludge(recycling of unburned bunker fuel oil) businesses as new areas. These steadfast efforts supported the division’s¥2,469mn in profit from operating activities (albeit still down 13.4% YoY).
Image of the portfolio management strategy for the Energy Innovation Division

Source: Company’s results briefing materials

We encourage readers to review our complete legal statement on “Disclaimer” page.

12 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/██Business Outlook
Likely to exceed full-year targets thanks
to favorable external conditions in 4Q, the strong demand period• Outlook for FY3/17
Itochu Enex forecasts ¥1,060,000mn in sales (down 1.1% YoY), ¥17,500mn in profit from operating activities(up 6.8%), ¥17,000mn in profit before tax (up 13.3%), and ¥10,000mn in net profit attributable to Itochu Enex’s
shareholders (up 33.9%) in FY3/17. These targets have not changed.
Outlook for FY3/17 results by business segment(¥mn)
FY3/16

FY3/17

3Q(cumulative)

4Q

Home-Life Division

68,526

26,600Power & Utility Division

31,181

12,314

Car-Life Division

408,605

Energy Innovation Division
Other
Sales before adjustments

3Q(cumulative)

YoY

4Q(forecast)

Full year(forecast)

95,12660,723-11.4%

33,977

94,70043,49545,752

46.7%

12,94858,700125,551

534,156

365,287-10.6%

173,113538,400

321,613

77,239398,852

258,346-19.7%

112,954371,300

0

0

0

-

-

-

-

829,925

241,704

1,071,629

730,108-12.0%

332,992

1,063,100

Full year

Adjustment

-

-

-

-

-

-3,100-3,100Total sales

829,925

241,704

1,071,629

730,108-12.0%

329,892

1,060,000

Home-Life Division

1,367

2,000

3,367

1,532

12.1%

3,468

5,000

Power & Utility Division

3,743

696

4,439

5,070

35.5%

-1,1703,900

Car-Life Division

2,774

1,420

4,194

3,716

34.0%

1,084

4,800

Energy Innovation Division

2,853

921

3,774

2,469

-13.5%

1,331

3,800

1

0

1

-

-

-

-

10,738

5,037

15,775

12,787

19.1%

4,713

17,500

782

-173

609

834

6.6%

-834

-

11,5204,864

16,384

13,621

18.2%

3,879

17,500

Other
Profit from operating activities
before adjustments
Adjustments
Total profit from operating activities

Source: Prepared by FISCO from the Company’s financial results and other materials

We encourage readers to review our complete legal statement on “Disclaimer” page.

13 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Outlook

We think Itochu Enex should beat full-year forecast from a comprehensive perspective of progress through 3Q andexternal conditions, including crude oil and LP gas prices in 4Q. We review our outlook for 4Q activity in the various
business divisions.
(1) Home-Life Division
We expect manifestation of benefits from the CP upturn in 4Q. CP has risen even further in 4Q at $435/ton in
January, $510/ton in February, and $480/ton in March, sharply above 3Q levels. Impact on inventory should turn
positive because the forex rate has stabilized at about ¥113.
We anticipate a boost to sales volume from heating demand due to heavy snowfall in western Japan in late January
2017. While total demand for LP gas is trending lower owing to decline in auto gas (taxi fuel), household LP gas
sales volume remains healthy. The above-mentioned weather factor might have contributed to a larger lift in 4Q
sales volume than expected.
(2) Power & Utility Division
We expect trends observed through 3Q to continue in 4Q. Retail sales should steadily rise in the electricity sales
business because of build-up in retail electricity contract volume. While the crude-oil price has climbed further in 4Q
and it is difficult to forecast the impact of the resulting upturn in wholesale electricity prices given the mix of positive
and negative impacts depending on time slots, we do not anticipate major erosion of electricity business profitability.
Higher wholesale electricity prices linked to the crude-oil price upturn raise some concern in the heat supply
business due to cost inflation. Nevertheless, this is mainly an issue of comparison with conditions through 3Q
and does not pose a serious threat because profitability in the heat supply business estimated at current crude-oil
and wholesale electricity prices is at a sufficiently high level.
(3) Car-Life Division
Nissan Osaka Sales, the main segment driver through 3Q, is likely to sustain healthy results in 4Q too. Nissan’sNote electric vehicle was the top-selling model in January 2017 following a model change (excluding minicars andimported cars; according to data compiled by the Japan Automobile Dealers Association).
The CS business is also likely to continue the pattern seen through 3Q because of a lack of change in overall
industry trends. We intend to closely monitor progress in non-fuel sales businesses, rather than gasoline andother fuel sales trends.
(4) Energy Innovation Division
While we anticipate continuation of trends observed through 3Q, the asphalt business deserves notice in 4Q.
Asphalt is a main business and key source of earnings in this division. Sales volume generally fell for industrial
energy products in 3Q, but asphalt was the only exception with a gain. We will be focusing on how much Itochu
Enex expands asphalt sales volume in 4Q, a strong demand period for asphalt given the high percentage of public
works in this business.

We encourage readers to review our complete legal statement on “Disclaimer” page.

14 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Outlook

Income statement(¥mn)
FY3/15Full year

FY3/16

FY3/17

3Q(cumulative)

Full year

3Q(cumulative)

4Q(forecast)

Full year(forecast)Sales

1,373,393

829,925

1,071,629

730,108

329,892

1,060,000

YoY

-8.8%

-22.1%-22.0%-12.0%

36.5%

-1.1%

Revenue

936,841555,791

723,645491,905

-

-

YoY

-3.0%

-23.4%-22.8%-11.5%--

Gross profit

85,72065,33489,562

67,839

-

-

YoY

19.7%

6.7%

4.5%

3.8%

-

-

% of sales

6.2%

7.9%

8.4%

9.3%

-

-

SG&A expenses

71,18454,06373,22654,122

-

-

YoY

23.0%

5.5%

2.9%

0.1%

-

-

% of sales

5.2%

6.5%

6.8%

7.4%

-

-

-1,825

-184

-593

-689

-

-

389

433

641

593

-

-

Total other expenses-72,620-53,814-73,178-54,218--

Profit from operating activities

13,10011,52016,384

13,621

3,879

17,500Loss from tangible assets, intangible assets and goodwill
Other - net

10.3%

19.5%

25.1%

18.2%

-20.3%

6.8%

12,155

10,77315,004

13,062

3,938

17,000-12.2%

22.5%

23.4%

21.3%

-6.9%

13.3%

5,503

5,791

7,469

6,912

3,088

10,000

YoY-22.8%

24.2%

35.7%

19.3%

84.0%

33.9%

EPS (¥)

48.71

51.26

66.10

61.17

27.33

88.50

Dividend (¥)

22.00

-

24.00

-

-

27.00

Book-value per share (¥)

862.30-889.70

-

-

-

YoY
Profit before tax
YoY
Net profit attributable to Itochu Enex’s shareholders

Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

15 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/

Business Outlook

Balance sheet(¥mn)
IFRS standard
FY3/14

FY3/15

FY3/163Q FY3/17

188,193

157,708

137,865

169,467

Cash and cash equivalents

14,251

16,184

20,824

16,981

Trade receivables

140,289

98,44971,96896,553Inventories

18,655

27,79425,16025,356

Non-current assets

132,531

171,351

166,188

164,402

Investments accounted for by the equity method

5,927

10,551

8,786

10,166

Other investments

7,349

8,924

8,029

7,462

Property, plant and equipment

66,98888,83688,311

87,919Current assets

10,28023,47424,32923,755

Total assets

320,724

329,059

304,053

333,869

Current liabilities

135,394

Intangible assets

158,336

149,443

111,997

Short-term bonds and borrowings

11,49914,208

5,299

9,528

Trade payables

125,655

104,564

80,745

104,329

Non-current liabilities

75,84758,26866,66974,894Non-current bonds and borrowings

27,09926,74632,36632,423Equity94,651

97,432

100,526

104,683

Common stock

19,87819,87819,87819,878

Capital surplus

18,737

18,74318,74018,740Retained earnings

59,88462,22366,02469,718Other components of equity-2,098-1,661-2,364-1,901

Treasury stock-1,750-1,751-1,752-1,752

9,469

15,515

16,636

17,945

Total equity

104,120

112,947

117,162

122,628

Total liabilities and equity

320,724

329,059

304,053

333,869

Non-controlling interests

Source: Prepared by FISCO from the Company’s financial results

Cash flow statement(¥mn)
IFRS standard
FY3/14

FY3/15

FY3/16

Cash flows from operating activities

17,53034,33630,3223Q FY3/17
8,126

Cash flows from investing activities-12,556-20,410-16,673-11,976

Cash flows from financing activities-8,859-12,115-9,05922

Net decrease in cash and cash equivalents-3,885

1,811

4,590

-3,828Cash and cash equivalents at the beginning the period

18,062

14,251

16,184

20,824

Increase in cash and cash equivalents resulting from merger

74

122

-27

-15

Effect of exchange rate changes on cash and cash equivalents

-

-

77

-

14,251

16,184

20,824

16,981

Cash and cash equivalents at the end of the period
Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

16 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd
8133 Tokyo Stock Exchange First Section

13-Apr.-2017
http://www.itcenex.com/english/ir/██Longer-Term Growth Strategies
Scheduled to announce the next medium-term business planin May 2017, focus on advancement and evolution of initiatives
from the current medium-term plan
Itochu Enex has been implemented the “Moving 2016” two-year medium-term business plan announced in May
2015, and FY3/17 is the second (final) year. It is on track to fulfilling the goals, as explained above, and should finish
this plan. We expect the next medium-term business plan to clarify growth strategies for the longer term, and Itochu
Enex is scheduled to announce a new plan in May 2017. We are not aware of earnings goals or the rough content
of specific growth strategies at this point. However, management has disclosed some items that are likely to playa role in the next medium-term business plan and we utilized these items as a basis for assessing the direction.
1. Focus on the content and dynamism of what should be pursued in the relatively short span of two years
The next medium-term business plan is likely to last for two years, just as the current plan, because of very rapidchanges in the business environment and the importance of responding quickly to changes. While “responding tochanges” has a passive tone, Itochu Enex clarified the desired format for its four business segments and outlined
many dynamic initiatives aimed at realizing these paradigms in the current medium-term plan. We intend to focus
on the goals presented and dynamism of efforts to achieve the goals in the short span of two years in the next
medium-term plan as well.
2. Look for whether Itochu Enex presents growth strategies organically linked to the new organizational structure
Itochu Enex announced a new organizational structure that takes effect from 1 April on 31 January, 2017. Itochu
Enex had operated through the four business divisions – Home-Life, Power & Utility, Car-Life, and Energy Innovation– in past years. It switched to “two groups and four business divisions,” which placed Home-Life and Power & Utility
into the Power & Gas Business Group and Car-Life and Energy Innovation into the Distribution & Energy Innovation
Business Group, from April 2016 with aims of integrating strategy development and accelerating business initiatives.
The new organization from April 2017 announced by Itochu Enex changes the way in which it divides the former
Distribution & Energy Innovation Business Group by adopting a split into the Life Energy & Logistics Division andIndustrial Energy & Logistics Division. It also introduces regional business units under the Life Energy & Logistics
Division, such as the East Japan Business Unit.
While the organizational structure itself is not a growth strategy, it provides an important infrastructure for efficient
execution of growth strategies. We cannot grasp the full scope of Itochu Enex’s growth strategies just from thisrelease on organization change. We are waiting for disclosure of the growth strategies with the organizational
revisions as an initial move.

We encourage readers to review our complete legal statement on “Disclaimer” page.

17 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

ITOCHU Enex Co., Ltd

13-Apr.-2017

8133 Tokyo Stock Exchange First Section

http://www.itcenex.com/english/ir/

Longer-Term Growth Strategies

Organizational Structure from 1 April, 2017

Source: Prepared by FISCO from the Company’s press release██Shareholder return policy
Plans to pay a ¥27 dividend in FY3/17 under the policy
for a 30% dividend payout ratio
Itochu Enex utilizes dividends to compensate shareholders and has a basic policy on shareholder returns of maintaining a dividend payout ratio of 30%.
Itochu Enex maintained the FY3/17 dividend target at ¥27 and paid a ¥13.5 interim dividend as indicated in the
period-start plan. It forecasts ¥10,000mn in net profit attributable to Itochu Enex’s shareholders (as previously), or¥88.5 in earnings per share, for FY3/17. These levels put the dividend payout ratio at 30.5%. We retain our viewof expecting an increase of the dividend in a phase of further profit expansion in light of Itochu Enex’s policy of a
30% payout ratio.

㻱㼍㼞㼚㼕㼚㼓㼟㻌㼍㼚㼐㻌㼐㼕㼢㼕㼐㼑㼚㼐㻌㼜㼑㼞㻌㼟㼔㼍㼞㼑㻌㼍㼚㼐㻌㼐㼕㼢㼕㼐㼑㼚㼐㻌㼜㼍㼥㼛㼡㼠㻌㼞㼍㼠㼕㼛㻱㼍㼞㼚㼕㼚㼓㼟㻌㼜㼑㼞㻌㼟㼔㼍㼞㼑㻌㻔㼘㼑㼒㼠㻕㻰㼕㼢㼕㼐㼑㼚㼐㻌㼜㼍㼥㼛㼡㼠㻌㼞㼍㼠㼕㼛㻌㻔㼞㼕㼓㼔㼠㻕㻔¥㻕㻝㻜㻜㻚㻜㻜

㻰㼕㼢㼕㼐㼑㼚㼐㻌㼜㼑㼞㻌㼟㼔㼍㼞㼑㻌㻔㼘㼑㼒㼠㻕

㻡㻜㻚㻜
㻟㻢㻚㻟

㻤㻜㻚㻜㻜
㻟㻝㻚㻣
㻢㻜㻚㻜㻜

（㻑）

㻠㻡㻚㻞

㻠㻜㻚㻜
㻟㻜㻚㻡

㻞㻣㻚㻥

㻟㻜㻚㻜
㻤㻤㻚㻡㻜

㻠㻜㻚㻜㻜
㻡㻣㻚㻞㻢

㻞㻜㻚㻜

㻢㻢㻚㻝㻜

㻢㻟㻚㻜㻡
㻠㻤㻚㻣㻝

㻞㻜㻚㻜㻜
㻝㻢㻚㻜㻜

㻞㻜㻚㻜㻜

㻝㻜㻚㻜
㻞㻞㻚㻜㻜

㻞㻠㻚㻜㻜

㻞㻣㻚㻜㻜

㻜㻚㻜㻜

㻜㻚㻜
㻲㼅㻟㻛㻝㻟

㻲㼅㻟㻛㻝㻠

㻲㼅㻟㻛㻝㻡

㻲㼅㻟㻛㻝㻢

㻲㼅㻟㻛㻝㻣㻌㻱

Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

18 18

Disclaimer
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This report was prepared at the request of its subject company using information provided
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