This document is an English translation of quarterly financial results report released on July 28, 2016 and written initially inJapanese.
The Japanese original should be considered as the primary version.

July 28, 2016

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

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

Scheduled date to file quarterly securities report:
Scheduled date to commence dividend payments:
Preparation of supplementary results briefing material on quarterly financial results:
Holding of quarterly financial results presentation meeting:

August 10, 2016
–
None
None

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

1. Consolidated financial results for the first three months of the fiscal year ending March 31, 2017(from April 1, 2016 to June 30, 2016)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Profit fromoperatingactivities

Total tradingtransactions

Three months ended

Millionsof yenJune 30, 2016
June 30, 2015

222,091 (22.1)
284,999 (15.2)%

Millionsof yenBasic earnings per
share attributable
to Itochu Enex’s
shareholders
Three months ended
June 30, 2016
June 30, 2015

Yen

9.53
11.85

Profit before tax%

Millionsof yen2,328 (15.6)
2,758 69.0

Net profit
attributable to Comprehensive
Itochu Enex’s
incomeshareholders

Net profit%

Millionsof yen%2,324 (11.3)
2,620 55.6

1,420
1,573

(9.7)
66.8

Millionsof yen%1,077 (19.5)
1,339 75.6

Millionsof yen%471 (78.2)
2,162 105.9

Diluted earnings
per share
attributable to
Itochu Enex’s
shareholders
Yen

–
–

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

(2) Consolidated financial position
Total assets

As ofJune 30, 2016
March 31, 2016

Total shareholders’equityTotal equity

Millions of yen

Millions of yen

303,376
304,053

Ratio of shareholders’equity to total assets

Millions of yen

115,932
117,162%

99,298100,526

32.7
33.1

2. Cash dividends
Annual cash dividends per share
Second quarterend

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

Yen–

Third quarter-end

Yen

Fiscal year-end

Yen

Total

Yen

Yen

12.00

–

12.00

24.00

13.50

–

13.50

27.00

–

Fiscal year ending
March 31, 2017
(Forecast)

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

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

Total tradingtransactions
Millions of yen

Six months ending
September 30, 2016
Fiscal year ending
March 31, 2017–
1,060,000

Profit from operating
activities% Millions of yen

–
(1.1)

–
17,500(Percentages indicate year-on-year changes.)
Basic earnings
Net profit
per share
Profit before tax attributable to Itochu attributable toEnex’s shareholders Itochu Enex’s
shareholders% Millions of yen

–
6.8

–
17,000% Millions of yen

–
13.3

–
10,000

%

Yen

–

–

33.9

88.50

Note: Revisions to the consolidated earnings forecasts most recently announced: None
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:
b. Changes in accounting policies other than the above:c. Changes in accounting estimates:

None
None
None

(3) Number of issued shares (common stock)a. Total number of issued shares at end of period (including treasury stock)
As of June 30, 2016

116,881,106 shares

As of March 31, 2016

116,881,106 sharesb. Number of treasury stock at end of period
As of June 30, 2016

3,891,891 shares

As of March 31, 2016

3,891,809 sharesc. Average number of outstanding shares during period (cumulative from the beginning of the fiscal year)
For the three months ended June 30, 2016

112,989,260 shares

For the three months ended June 30, 2015

112,989,902 shares* Indication regarding execution of quarterly review proceduresThis quarterly financial results report is out of the scope of the quarterly review procedures that are
required by the Financial Instruments and Exchange Act. At the time of disclosure of this quarterly
financial results report, the quarterly review procedures for the condensed quarterly financial statements
pursuant to the Financial Instruments and Exchange Act are in progress.
* Proper use of earnings forecasts, and other special notes
The forecasts and other forward-looking statements in this report are based on information currently
available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual
business and other results may significantly differ from these forecasts due to various factors.
Please refer to “1. Qualitative Information Regarding Results for the First Three Months, (3) Explanationof Consolidated Earnings Forecasts and Other Forward-Looking Statements” on page 5 of the attachedmaterials for the suppositions that form the assumptions for earnings forecasts and cautions concerning theuse thereof.

Contents of Attached Materials
1. Qualitative Information Regarding Results for the First Three Months ............................................... 2(1) Explanation of Operating Results ....................................................................................................... 2(2) Explanation of Financial Position ....................................................................................................... 5(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements......... 5
2. Matters Regarding Summary Information (Notes) ................................................................................. 6(1) Changes in Significant Subsidiaries During the Period .................................................................... 6(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Prior
Period Financial Statements ................................................................................................................ 6
3. Condensed Quarterly Consolidated Financial Statements ...................................................................... 7(1) Condensed Quarterly Consolidated Statement of Financial Position .............................................. 7(2) Condensed Quarterly Consolidated Statement of Comprehensive Income..................................... 9(3) Condensed Quarterly Consolidated Statement of Changes in Equity ........................................... 11(4) Condensed Quarterly Consolidated Statement of Cash Flows ....................................................... 12(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern .................................... 14(6) Segment Information .......................................................................................................................... 14

-1-

1.

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

Results of operations
During the three months ended June 30, 2016, the Japanese economy continued to recover at amoderate pace, supported by improvements in corporate earnings and the employment environment, etc.
However, the outlook for the global economy remained uncertain due to factors such as slowing
economies in China and other emerging countries and the UK’s decision to leave the EU.
In the petroleum products distribution industry, the persistent decline in demand continues and theoutlook for crude oil prices remains uncertain.
In the power market, the spot average price was below that of the corresponding period of a year earlier
due to the falling costs of raw materials such as LNG resulting from the decline in crude oil prices.
However, trading volume in the spot market has been rising since the full liberalization of theelectricity retail market in April 2016.
In this operating environment, the Itochu Enex Group announced its two-year medium-term businessplan “Moving 2016 —Sowing seeds for tomorrow—” in April 2015, and has been advancing its
business based on following three basic policies:<i>

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

As part of these efforts, we reorganized the business divisions in April this year and launched a neworganization structure of two business groups with four divisions, that is, the “Power & Gas BusinessGroup” consisting of the Home-Life Division and the Power & Utility Division and the “Distribution &Energy Innovation Business Group” consisting of the Car-Life Division and the Energy Innovation
Division (formerly Energy Trade Division). In light of the normalized decline in the demand for
petroleum and the subsequent industrial reorganization, as well as a change in the management
environment following the full liberalization of the electricity and gas retail market, the Company aims
to unify and expedite the establishment of strategies and the development of businesses bycomprehensively consolidating the related businesses.
Furthermore, for the full liberalization of the electricity retail market, we named electricity supply
services for households, which the Itochu Enex Group has been developing, “e-koto denki!” and beganretail sales in April this year through group companies that sell LP gas, etc. The Itochu Enex group also
started the wholesale of electricity and the provision of supply/demand adjustment services tobusinesses that are considering selling electricity to households. It aims to create a balancing group*1
and expand its range of electricity retailing support services aimed at local governments and businesses
from other sectors.
As a result of the above activities, revenue fell by 22.1% year on year to ¥148,808 million. Profit fromoperating activities was ¥2,328 million (down 15.6% year on year) and net profit attributable to Itochu
Enex’s shareholders was ¥1,077 million (down 19.5% year on year).
*1: In the balancing group, the representative of a group made up of multiple electricity retailing businesses adjusts the
supply and demand within the entire group. This reduces the risk of being subject to in-balance penalty payments
under the balancing system.

2)

Results of operations by segment<Power & Gas Business Group>
Home-Life Division
In the Home-Life Division, the sales volume of LP gas fell slightly from that of the corresponding
period of the previous fiscal year, despite an increase in the number of new customer residences,-2-

mainly due to declining demand for automotive gas. Despite the impact of a drop in the import price ofLP gas in the previous period, profit from operating activities increased from the corresponding periodof the previous fiscal year due to successful efforts to secure profits through the gas rate adjustment
system.
In April 2016, ITOCHU ENEX HOME-LIFE KANTO CO., LTD. and ECORE Co., Ltd. began retailsales of electricity to households. Other Group companies will also progressively start electricity retailsales from August 2016.
In overseas business, we dispatched more personnel to PT. ITC ENEX INDONESIA, a producer andseller of industrial gas in Indonesia, which was established in October 2015. The company will work to
expand sales of industrial gas, mainly targeting locally based Japanese companies. In the Philippines,
we took a stake in LP gas sales company Isla Petroleum & Gas Corporation through an investment in
May 2016. We will dispatch personnel to the company with the aim of utilizing our expertise in Japan
to expand sales of LP gas in the Philippines.
As a result of these activities, revenue was ¥18,956 million (down 16.1% year on year), profit fromoperating activities was ¥646 million (up 10.6% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥361 million (up 101.0% year on year).

Power & Utility Division
The Power & Utility Division, in addition to its existing sales to business users, has started sales ofelectricity to households through a balancing group following the full liberalization of the electricity
retail market in April 2016.
In the electricity and steam supply business, sales volume increased from the corresponding period of
the previous fiscal year in the electricity retailing field, which is centered on the Company and OjiItochu Enex power retailing Co., Ltd.
Also, as a result of a decrease in contract electric power, electricity sales volume and steam supply
volume declined from the corresponding period of the previous fiscal year at power generationcompany ENEX Electric Power Co., Ltd., which changed its name from JEN Holdings Co., Ltd. in
April 2016. Despite a decline in total power generation, profit in the electricity and steam supply
business increased from the corresponding period of the previous fiscal year due to an increase inelectricity retail sales volume.
In the heat supply business*2, demand for heat declined year on year, despite average temperatures in
East Japan that were largely the same as the corresponding period of the last year. Although demand forheat declined, profits in this business were steady year on year due to a drop in the cost of raw materials.
The Power & Utility Division is taking a number of steps to address rising competition from sector
companies and from new companies moving into the sector following the full liberalization of theelectricity retail market in April 2016. In existing areas of the market that have already been liberalized,
the division is reinforcing sales in each area while taking into account regional characteristics, centeredon areas where the Group owns power supplies. In electricity retail sales to households and othercustomers, the division is enhancing cooperation with the Home-Life Division and other divisions to
expand sales channels to the Group’s existing customers.
As a result of these activities, revenue was ¥11,419 million (up 14.1% year on year), profit fromoperating activities was ¥1,301 million (up 13.1% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥652 million (down 0.7% year on year).
*2 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.

<Distribution & Energy Innovation Business Group>
Car-Life Division
In the Car-Life Division, sales volume declined from the corresponding period of the previous fiscal
year, reflecting a continued drop in demand for fuel oil in the domestic market. Profit from operating-3-

activities declined from the corresponding period of the previous fiscal year in both wholesaling andretailing due to a decrease in margins caused by deteriorating market conditions.
As part of our retail strategy, we pushed ahead with the introduction of our new POS system (E6POS)
and used the Rakuten Super Points system to exchange customers with affiliated stores in other sectors.
We also rolled out our new Carlife Stadium service brand, initially focusing on our car rental and car
dealership businesses.
Using the Carlife Stadium brand, we aim to attract new customers and boost customer loyalty in order
to increase the number of users across all our services.
Meanwhile, Enexauto Co., Ltd., which operates the car wash business portal websites Japan Car Wash
Federation (for business users) and Sensya Senka (for general users), is implementing various measures
to make its operations profitable, such as transferring customers to member stores in the automotive
aftermarket.
The number of Car-Life Stations in the Itochu Enex Group as of June 30, 2016, was 1,955, marking a
net decrease of 18 stations from the end of the previous fiscal year due to disaffiliation of unprofitableand decrepit stations.
As a result of these activities, revenue was ¥102,964 million (down 19.1% year on year), loss fromoperating activities was ¥207 million (profit from operating activities in the corresponding period of theprevious fiscal year was ¥245 million), and net loss attributable to Itochu Enex’s shareholders was ¥329
million (net profit attributable to Itochu Enex’s shareholders in the corresponding period of theprevious fiscal year was ¥0 million).

Energy Innovation Division
The Energy Innovation Division faces a structural decline in demand for domestic petroleum products
and sluggish conditions of its market due to intensifying competition. Against this backdrop, thedivision is working to expand business with existing customers and attract new customers as part ofefforts to build a stable revenue base.
In this division, based on our policy of “expansion of business portfolios,” we are “appropriately andeffectively enhancing assets” and “actively pushing ahead with new business commercialization
projects.” In sales of industrial fuels and materials, we established Kokura Enterprise Logi Service Co.,
Ltd. to expand sales channels to small volume users and reinforce logistics functions.
In the AdBlue sales business, we established our ninth partner plant in Japan and reinforced our
integrated sales systems in supply areas, covering all phases from production to distribution.
We are also working to improve the profitability by providing comprehensive product and service
solutions covering areas such as electricity supply to business users, in addition to the division’s
existing product and materials business. In addition, we are working steadily to commercialize new
businesses that recycle waste oil from ships and fly ash discharged from thermal power plants. We arealso considering starting supplies of biomass fuel for power plants.
Itochu Enex is participating in a project to build a next-generation biodiesel plant in Nebraska, US. The
plant is scheduled to begin full operations in the first half of the current fiscal year.
Going forward, the division will develop proposals tailored to customer needs while responding
flexibly to changes in the external environment, aiming to conduct business development based on
close cooperation with Group companies.
As a result of these activities, revenue was ¥15,469 million (down 50.4% year on year) due to theimpact of declining sales prices, profit from operating activities was ¥330 million (down 29.7% year onyear), and net profit attributable to Itochu Enex’s shareholders was ¥259 million (down 18.9% year onyear).

-4-

(2) Explanation of Financial Position
Assets, liabilities and equity
Total assets amounted to ¥303,376 million as of June 30, 2016, a decrease of ¥677 million from March 31,
2016. This mainly reflected a drop in non-current assets due to a decline in investment securities caused
by lower share prices, and a decrease in deferred tax assets, which exceeded an increase in current assets
due to a rise in trade receivables. Total liabilities amounted to ¥187,444 million, an increase of ¥553
million from March 31, 2016, mainly due to an increase of bonds and borrowings. Total equity totaled¥115,932 million, a decrease of ¥1,230 million from March 31, 2016, due to an increase from net profit, adecrease by payment of cash dividends, and the like.

Cash flows
Cash and cash equivalents (net cash) totaled ¥13,203 million as of June 30, 2016, down ¥7,621 million
from March 31, 2016.

Cash flows from operating activities
Operating activities used net cash of ¥8,238 million. Major items included expenses as funds required for
trading of ¥8,738 million.

Cash flows from investing activities
Investing activities used net cash of ¥6,637 million. Major items included payments for deposit paid in
subsidiaries and associates, which are affiliates including parent, subsidiaries and associates, of ¥6,000
million and payments for purchase of property, plant and equipment and investment property and otheritems of ¥1,760 million.

Cash flows from financing activities
Financing activities earned net cash of ¥7,301 million. Major items included proceeds from an increase ininterest-bearing debt of ¥9,002 million and expenses as payment of cash dividends of ¥1,700 million.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
Although operating performance could be affected by various factors, including crude oil prices, market
conditions, changes in the weather, and the Japanese government’s energy policy, we have not revised ourfull-year consolidated earnings forecasts announced on April 28, 2016.

-5-

2.

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

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

-6-

3.

Condensed Quarterly Consolidated Financial Statements(1) Condensed Quarterly Consolidated Statement of Financial Position
As ofMarch 31, 2016
ASSETS
Current assets
Cash and cash equivalents
Trade receivables
Other current financial assets
Inventories
Trade advances paid
Other current assets
Total current assets
Non-current assets
Investments accounted for by the equity method
Other investments
Non-current financial assets other than investments
Property, plant and equipment
Investment property
Goodwill
Intangible assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets-7-(Millions of yen)
As ofJune 30, 2016

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

13,20375,351
24,251
22,4872,207
2,311

137,865

139,810

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

8,695
7,259
9,698
87,846
12,959588
24,024
11,208
1,289

166,188

163,566

304,053

303,376As ofMarch 31, 2016
LIABILITIES AND EQUITYCurrent liabilities
Short-term bonds and borrowings
Trade payables
Other current financial liabilities
Income taxes payable
Advances from customers
Other current liabilities
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 ofJune 30, 2016

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

12,46274,519
6,471
770
6,714
9,404

111,997

110,340

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

34,49024,55910,228
1,823
5,468
536

Total non-current liabilities

74,894

77,104

Total liabilities

186,891

187,444

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

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

19,87818,74065,634(3,202)(1,752)

Total shareholders’ equity

100,526

99,298Non-controlling interests
Total equity
Total liabilities and equity-8-

16,636

16,634

117,162

115,932

304,053

303,376

(2) Condensed Quarterly Consolidated Statement of Comprehensive Income
Three months ended
June 30, 2015

(Millions of yen)Three months ended
June 30, 2016

Revenue
Cost of sales

191,056(170,519)

148,808(128,316)

Gross profit

20,537

20,492Other expense
Selling, general and administrative expenses
Loss from tangible assets, intangible assets and goodwill
Other – net(17,922)(41)
184(18,161)(251)
248

Total other expense(17,779)(18,164)

Profit from operating activities

2,758

2,328

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

35
216
(215)
–

22
229
(235)
(1)

Total financial income and costs

36

15

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

-9-

(174)

(19)

2,620

2,324

(1,047)

(904)

1,573

1,420

1,339
234

1,077
343

Three months ended
June 30, 2015
Other comprehensive income (net of tax effect)
Items that will not be transferred to profit or loss
FVTOCI financial assets
Other comprehensive income in associates accounted for by theequity method
Items that may be transferred to profit or loss
Exchange differences on translating foreign operations
Cash flow hedges
Other comprehensive income in associates accounted for by theequity method
Total other comprehensive income (net of tax effect)
Comprehensive income
Comprehensive income attributable to Itochu Enex’s shareholders
Comprehensive income attributable to non-controlling interests(Millions of yen)Three months ended
June 30, 2016

456

(393)

(0)

(0)

11
(75)

(53)
(110)

197

(393)

589

(949)

2,162

471

1,928
234

128
343
(Yen)

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

11.85
–

9.53
–

284,999(Millions of yen)
222,091

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

- 10 -

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Three months ended
June 30, 2015

(Millions of yen)Three months ended
June 30, 2016

EquityCommon stock
Balance at the beginning of the period

19,87819,878

Balance at the end of the period

19,87819,87818,743(3)

18,740–18,74018,74062,223
1,339(30)(1,243)66,024
1,077(111)(1,356)62,28765,634(1,661)(2,364)

589

(949)

Capital surplus
Balance at the beginning of the period
Acquisition of subsidiary shares from non-controlling interests
Balance at the end of the period
Retained earnings
Balance at the beginning of the period
Net profit attributable to Itochu Enex’s shareholders
Transfer from other components of equity
Cash dividends paid to Itochu Enex’s shareholders
Balance at the end of the period
Other components of equity
Balance at the beginning of the period
Other comprehensive income attributable to Itochu Enex’s
shareholders
Transfer to retained earnings
Balance at the end of the period
Treasury stock
Balance at the beginning of the period
Purchase and disposal of treasury stock
Balance at the end of the period
Total shareholders’ equity
Non-controlling interests
Balance at the beginning of the period
Net profit attributable to non-controlling interests
Other comprehensive income attributable to non-controllinginterests
Cash dividends paid to non-controlling interests
Balance at the end of the period
Total equity- 11 -

30

111(1,041)(3,202)(1,751)(0)(1,752)(0)(1,751)(1,752)

98,11399,29815,515234

16,636
343

0

(0)

(110)

(345)

15,63916,634

113,752

115,932(4) Condensed Quarterly Consolidated Statement of Cash Flows(Millions of yen)Three months ended
June 30, 2015

Three months ended
June 30, 2016

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

2,620
3,011
41
(36)
174
4,957
3,672
(9,977)
73
368
(158)
(2,248)

2,324
2,694
251
(15)
19
(5,268)2,673(6,142)(1,601)412(181)(3,404)

Net cash flows provided by (used in) operating activities

2,497(8,238)

(4)

(485)

12

–

(1)
4
(1,090)
(75)
81

(8)
1,160
–
(215)
102

(1,347)(1,580)

184

308

(118)
1
–
(742)

(180)
–
(6,000)261(3,095)(6,637)

Cash flows from investing activities
Purchase of investments accounted for by the equity method
Proceeds from sales of investments accounted for by the equity
methodPurchase of investments
Proceeds from sales of investments
Acquisition of subsidiaries, net of cash acquired
Payment for loans receivableCollection of loans receivable
Payments for purchase of property, plant and equipment andinvestment property
Proceeds from sales of property, plant and equipment andinvestment property
Purchase of intangible assets
Proceeds from sales of intangible assets
Increase in deposits paid – net
Other – net
Net cash flows used in investing activities- 12 -

(Millions of yen)Three months ended
June 30, 2015

Three months ended
June 30, 2016

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

1,400
(917)
802
(1,243)
(110)
(0)

3,000
(590)
6,592
(1,356)(345)–

Net cash flows provided by (used in) financing activities

(68)

7,301

Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning the period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period- 13 -(666)(7,574)

16,184

20,8243(47)

15,521

13,203

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

(6) Segment Information
For the three months ended June 30, 2015
(Millions of yen)
Reportable segment
Home-Life

Power &
Utility

Car-Life

EnergyInnovation

Total

Other

Total

Revenue fromexternal customers

22,58410,004

127,286

31,182

191,0560

191,056–

191,056

Intersegment revenue

56

72

1,594

174

1,896

–

1,896

(1,896)–

22,64010,076

128,880

31,356

192,952

0

192,952(1,896)

191,056

6,211

1,825

10,838

1,663

20,537–

20,537–

20,537

Profit fromoperating activities

584

1,150

245

470

2,449

1

2,450

308

2,758

Profit before tax

504

1,161

136

483

2,284

1

2,285

335

2,620

Net profit
attributable to
Itochu Enex’s
shareholders

180

657

0

319

1,156

0

1,156

183

1,339

Total assets

58,88556,086125,045

67,373

307,3891

307,390

12,842

320,232

Total tradingtransactions

23,651

10,179135,952

115,217284,999

0284,999–

284,999

Adjustment Consolidated

Revenue

Total revenue
Gross profit

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥183 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥12,842 million to total assets represents corporate assets not allocated to reportable segments.
Total trading transactions are unaudited items voluntarily disclosed by the Company and represent the amount ofsales in accordance with Japanese accounting practices.

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For the three months ended June 30, 2016
(Millions of yen)
Reportable segment
Home-Life

Power &
Utility

Car-Life

EnergyInnovation

Total

Other

Total

18,956

11,419102,964

15,469148,808–

148,808

Adjustment Consolidated

Revenue
Revenue fromexternal customers
Intersegment revenue–

148,808

58

62

744

178

1,042

–

1,042

(1,042)–

19,014

11,481

103,708

15,647

149,850–

149,850(1,042)

148,808

6,463

2,172

10,273

1,584

20,492–

20,492–

20,492

Profit fromoperating activities

646

1,301

(207)

330

2,070

–

2,070

258

2,328

Profit before tax

758

1,228

(292)

382

2,076

–

2,076

248

2,324

Net profit
attributable to
Itochu Enex’s
shareholders

361

652

(329)

259

943

–

943

134

1,077

Total assets

57,03359,473112,662

54,444

283,612–283,612

19,764

303,376

Total tradingtransactions

20,136

11,973111,055

78,927222,091–

222,091–

222,091

Total revenue
Gross profit

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥134 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥19,764 million to total assets represents corporate assets not allocated to reportable segments.
Total trading transactions are unaudited items voluntarily disclosed by the Company and represent the amount ofsales in accordance with Japanese accounting practices.

As of March 31, 2016
(Millions of yen)
Reportable segment

Total assets(Note)

Home-Life

Power &
Utility

Car-Life

EnergyInnovation

Total

Other

Total

60,404

55,144116,484

50,284282,316–

282,316

Adjustment Consolidated
21,737304,053

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

- 15 -