This document is an excerpt English translation of a statement written initially in Japanese.
The Japanese original should be considered as the primary version.

FOR IMMEDIATE RELEASE
Itochu Enex Co., Ltd.
Representative: Kenji Okada, President
Stock code: 8133, Tokyo Stock Exchange, 1st Section
Contact: Naohiko Takamura
General Manager, Finance and Accounting Department
http://www.itcenex.com/english/
Tel: +81 3-6327-8010

Itochu Enex Reports Consolidated Earnings for the Nine
Months Ended December 31, 2013 (Under Japanese GAAP)Tokyo, Japan, January 30, 2014 -- Itochu Enex Co., Ltd. (TSE: 8133) announced net
sales of 1,088,687 million yen for the nine months ended December 31, 2013, and net
income of 4,190 million yen, or 37.09 yen per share, on a consolidated basis.
Results of Operations
In the nine months ended December 31, 2013, the Japanese economy gradually
recovered, showing signs of improvements in corporate earnings and personal
consumption thanks to effects from the governmental economic and financial administration
including the monetary easing policy. However, with a sluggish growth in personal income,adverse effects from the consumption tax hike decided to enforce in April 2014, and otherfactors, concerns have remained about future personal consumption.
In the petroleum products distribution industry, the procurement cost of crude oil has
generally increased due to continuously weakening yen. As for domestic sales volume, fueloil significantly decreased overall from the corresponding period a year earlier with a drop
in demand for heavy oil for power generation and other factors, while gasoline remained at
the year-earlier level, and gas oil grew at a pace exceeding the corresponding period ayear earlier.
In this operating environment, the Itochu Enex Group is in the final year of a mediumterm business plan, Core & Synergy 2013. During the period of the medium-term businessplan, we have implemented an extensive growth strategy, centering on the following priority
approaches: “Improvement of petroleum product distribution functions”, “Development ofdemand-generating business from the consumer’s perspective”, “Transformation into a
company providing the best mix of energy”, and “Active expansion of overseas business”.
Amid decreasing domestic demands for petroleum products, we have been optimizing
logistics and expanding domestic sales networks in the core petroleum product sales
business and LP gas sales business. We have also been building a system to fulfill various
social needs for energy, for example, by reinforcing our power generation capacity
including renewable energy in the new electric power business.
As a result of the above activities, in the nine months ended December 31, 2013,
consolidated net sales increased 5.7% year on year to 1,088,687 million yen. Operating
income and ordinary income decreased year on year respectively by 3.3% to 8,012 million
yen, and 3.6% to 7,899 million yen. Net income rose 19.0% year on year to 4,190 million
yen with extraordinary gain on sales of investment securities.

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Results of Operations by Segment
As business segments have been added and changed, as stated in segment information,
year-on-year comparisons are based on the segments after the change.
Energy Trade Division
The Energy Trade Division earned operating income of 792 million yen (down 54.4%
year on year) on net sales of 528,221 million yen (up 0.6% year on year) in the nine months
ended December 31, 2013.
Despite the growing tendency of global demands for petroleum products, domestic ones
have continued to decline. Furthermore, crude oil prices have remained high, and there is amove to reduce production of domestic petroleum products. Consequently, as the domestic
petroleum product market has continued sluggish, the business environment remained
harsh.
Under such circumstances, though we proactively secured new transactions, responding
to domestic and overseas market trends and customer’s needs, in an effort to expand sales
volume in each product and service, profits decreased from a year earlier with temporarily
recognized loss on valuation of futures for hedging spot stocks.
In order to steadily improve and optimize distribution functions as division’s priority issue,
we have built an asphalt sales network centering on 11 asphalt terminals nationwide,
deployed nine dedicated fuel supply ships in Japan in the marine fuel sales business fordomestic operation, and enhanced 17 AdBlue supply bases nationwide in response to theincreasing popularization of urea SCR vehicles1. Like this, we continued to enhance our
supply system. The third company-owned vessel to carry asphalt “Angel Blue” is scheduled
to be completed within the current fiscal year, following “Great Crane” completed in thecurrent fiscal year. We will continue to steadily improve and optimize distribution functions
in main products and services, quickly responding to diversifying needs of clients, andchanges in market conditions.
Note 1 Urea SCR vehicle: Urea SCR vehicle purifies NOx using urea solution (AdBlue) andSelective Catalytic Reduction to reduce NOx in exhaust gas from diesel engines.

Car-Life Division
The Car-Life Division earned operating income of 2,317 million yen (down 7.7% year onyear) on net sales of 448,016 million yen (up 8.7% year on year).
Demands for gasoline declined with prices of domestic petroleum products remaining
high due to impacts from high crude oil prices and weakening yen, as well as increased
popularization of fuel-efficient cars. In addition, demands for kerosene significantly fell as
temperature was higher in the beginning of winter. However, sales volume leveled off froma year earlier thanks to promotion of new large-scale affiliates at the end of the previous
fiscal year and in the current fiscal year, and proactive sales approaches. Meanwhile,
profits fell year on year with large impacts of profit margin compressed by the deteriorationin retail market conditions, despite efforts to reduce costs at each base, and expand profits
from non-fuel oil businesses at Group companies. In the retail strategy, we have strived to
improve profitability of Car-Life Stations of the Group2, promoting measures such as thedetailed follow-up system with “ENEX ACT Program3”, which is an interactive seminar witha small number of participants developed for the purpose of strengthening competitivenessof the Stations, as well as support for operation of the Stations through sharing of
successful examples. In the automobile-related business, mainly Enexauto Co., Ltd., aGroup company, contributed to an improvement in profitability of Car-Life Stations of theGroup, for example, by promoting the car hire business “Itsumo Rent-a-Car”, the used-2-

vehicle trading business “Itsumo Car Net”, and a system to unify management of customers“Car Business Support”.
As part of social contribution activities, we have also implemented an activity “the Eco
Support Manifesto for Kids” in which we have visited 61 kindergartens and nursery schools
across Japan to consider environmental issues together with kids. We intend to continue topass on the importance of environment to the next generation.
The number of Car-Life Stations of the Group at the end of the nine months was 2,159; a
net decrease of 23 stations from the end of the previous fiscal year. During the nine months,
we added 60 newly affiliated stations even amid the decrease in the number of domesticgas stations, while losing 83 stations through disaffiliation of unprofitable and decrepit
stations, etc.
Note 2 Car-Life Stations: Car-Life Stations are full-service automobile service stations
affiliated with Itochu Enex.
Note 3 ENEX ACT Program: Under this program, we work closely with Car-Life Station
operators to raise their competitiveness by analyzing their station operations andcompetitive climate, conducting group training, and engaging in other activities.

Total Home-Life Division
The Total Home-Life Division earned operating income of 2,188 million yen (up 21.6%
year on year) on net sales of 85,176 million yen (up 14.2% year on year).
The number of direct sales for home increased year on year, and sales volume of LP gas
almost leveled off from a year earlier, as a result of promoting the area strategy at Group
companies, and proactively working on acquisition of retail business rights, etc.
Despite the second highest import price of LP gas in history in December 2013,
appropriate profit margin could be ensured with gas rate adjustment system which has
been actively introduced for some time.
In the new energy business, we have proactively conducted “activities to propose thebest mix of energy” combining a solar power generation system, ENEFARM residential fuelcells, and high-performance and high-efficiency gas equipment, through “Smart Life”
campaign which started in June 2013. As a result, sales volumes of new types of energy
equipment and high-performance and high-efficiency gas equipment increased by 59% and
34% respectively, year on year. Furthermore, community-based events are held at each “Ekoto Shop” operated by the Group in order to perform activities as a community information
station.
As part of social contribution activities, we will continue to implement “the Itadakimasu
Support Manifesto for Kids” and “the Honoo no Chikara Support Manifesto for Kids” atkindergartens and nursery schools across Japan for the purpose of educating children
about “importance of diet” and “importance of fire”.

Power & Utility Division
The Power & Utility Division earned operating income of 2,638 million yen (up 37.3%
year on year) on net sales of 26,769 million yen (up 49.3% year on year).
In the electricity and steam supply business, the amount of electricity sold increased froma year earlier, with contributions from the reinforcement of thermal power generation
facilities in the previous fiscal year, the wind power generation business with the acquisitionof JEN Konbumori Wind Farm Co., Ltd., solar power generation of JEN Kusu Wind Farm-3-

Co., Ltd. newly established in the current fiscal year, and other factors. Even with theincreased cost of sales, profits grew largely year on year thanks to prices remaining high inthe wholesale power market and the wind power generation business using the renewableenergy feed-in tariff system, etc.
Hofu Energy Service Co., Ltd., a Group company, started construction to enhance thecoal thermal power generation facility, which is scheduled to start operation in April 2015.
As for the wind power generation business, in December 2013, we acquired all shares of
Tainai Wind Farm Co., Ltd. to be the Group’s third wind farm operation. Tainai Wind FarmCo., Ltd. is constructing wind power generation facilities with 20MW in Tainai City, Niigata
prefecture, which is scheduled to start operation in September 2014.
In the heat supply business4, the amount of heat sold leveled off from a year earlier, as
heat for air heating declined while heat for air cooling increased year on year due to slightly
higher average temperature than usual in the east Japan areas.
In the LNG sales business, sales volume increased year on year with the increased
number of new clients, as well as a gradual recovery of operating rate of manufacturing
plants.
Note 4 Heat supply business: Heat supply business supplies cold and hot water for air
conditioning to office buildings and other multiple buildings from a heat source plantusing pipes.

Financial Condition
Total assets amounted to 347,027 million yen at December 31, 2013, an increase of
23,279 million yen from March 31, 2013. This primarily reflected an increase in trade notes
and accounts receivable. Liabilities amounted to 236,609 million yen, an increase of 19,393
million yen from March 31, 2013. This primarily reflected an increase in trade notes andaccounts payable. Net assets totaled 110,417 million yen, an increase of 3,886 million yen,
due to factors including increases in retained earnings and minority interests.

Consolidated Earnings Forecasts
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 our full-year consolidated earnings forecasts announced on
May 2, 2013.

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Financial Statements—Consolidated(1) Consolidated Balance Sheets
Millions of yen

AssetsCurrent assets
Cash and cash equivalents
Trade notes and accounts receivable
Merchandise and finished products
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Vessel
Accumulated depreciation
Vessel, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Net, property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-5-

March 31, 2013
AmountDecember 31,
2013
Amount17,880139,140
17,044
1,963
17,267(218)
193,077

12,593
149,628
24,4591,690
21,192(323)
209,240

57,725(33,203)
24,52153,022(28,209)
24,812488(11)477
34,7535,435(3,026)
2,408
588
6,206
(4,399)1,806
89,36857,426(32,897)
24,52852,577(28,354)
24,222
1,177
(86)
1,090
34,637
5,794(3,677)
2,116
7,628
6,682
(4,433)
2,248
96,472

3,209
8,164
11,373

3,173
8,322
11,495

15,269964
2,816
11,380(503)
29,926130,669
323,747

14,952877
2,842
11,695(549)
29,818
137,786
347,027

Millions of yen

Liabilities
Current liabilities
Trade notes and accounts payable
Short-term borrowings
Commercial papers
Corporate bonds due within one year
Lease obligations
Income taxes payable
Accrued bonuses for employees
Accrued bonuses for directors and corporate
auditors
Other current liabilities
Total current liabilities
Long-term liabilities
Corporate bonds
Long-term debt
Lease obligations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Liabilities for retirement benefits
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income(loss)
Unrealized gains (losses) on available-for-salesecurities
Deferred hedge gains (losses)
Revaluation reserve for land
Foreign currency translation adjustments
Total accumulated other comprehensive income(loss)
Minority interests
Total net assets
Total liabilities and net assets-6-

March 31, 2013
AmountDecember 31,
2013
Amount119,006
9,594
–
5,000
1,132
3,932
3,115

139,447
11,969
3,000
–
965
1,543
1,548

404

259

20,047
162,233

20,867
179,601

20,000
6,246
2,141
1,809
2,438
6,404
2,688
13,25354,983
217,216

20,000
7,098
1,917
2,075
2,358
6,768
2,825
13,96457,008236,609

19,877
18,736
69,106(1,749)105,970

19,877
18,736
71,502(1,750)108,366

(104)

470

(5)
(7,778)71(116)(7,792)140(7,815)(7,297)

8,375
106,530
323,747

9,347
110,417
347,027

(2) Consolidated Statements of Income
Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income
Interest income
Dividend income
Purchase discounts
Equity in income of unconsolidated subsidiaries andassociates
Other
Total other income
Other expense
Interest expense
Sales discounts
Bond issuance cost
Loss on foreign currency translation
Other
Total other expense
Ordinary income
Extraordinary gains
Gain on sales of fixed assets
Gain on sales of investment securities
Compensation income for expropriation
Other
Total extraordinary gains
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on sales of investment securities
Loss on devaluation of investment securities
Loss on devaluation of golf club membership
Loss on impairment of long-lived assets
Head office relocation expense
Voluntary product recall related expense
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Current
Deferred
Total income taxes
Income before minority interests
Minority interests
Net income-7-

Nine months
ended
December 31,
2012
AmountNine months
ended
December 31,
2013
Amount

1,029,796
979,72150,075
41,7938,281

1,088,687
1,037,693
50,99342,981
8,012

55
250
198

14
240
214

8

117

616
1,130

582
1,168

403
166
84
407
156
1,219
8,192

384
191
–
422
283
1,281
7,899

97
12
150
–
260

514
2,082
–
2
2,598

648
2
2
6
250
–
–
910
7,543

526
–
1
0
899
303
232
1,963
8,534

2,999
334
3,334
4,208
686
3,522

3,474
200
3,674
4,860
669
4,190

Consolidated Statements of Comprehensive Income
Millions of yen

Income before minority interests
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Share of other comprehensive income (loss) of associates
accounted for using equity method
Total other comprehensive income (loss)
Comprehensive income
Components:
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-8-

Nine months
ended
December 31,
2012
AmountNine months
ended
December 31,
2013
Amount

4,208

4,860

260
–
–

574
(94)
21

(64)

31

196
4,404

532
5,392

3,718
686

4,722
669

(3) Notes to Consolidated Financial Statements
Notes on the Going-Concern Assumption
Not applicable
Notes on Significant Changes in Shareholders’ Equity
Not applicable
Segment Information
Nine months ended December 31, 2012 (April 1, 2012 to December 31, 2012)
1. Net sales, income/loss by reportable segment
Millions of yen

Sales
Sales to customers
Intersegment sales ortransfers
Total
Segment income

Notes:

Amounts
on theconsolidated
statements
Adjustments of income*2*3

EnergyTrade

Reportable segment
Total Home- Power &Car-LifeLife
Utility524,833

412,078

74,562

17,9281,029,403

393

1,029,796–

1,029,796

19,248

7,030

3,397

–

29,676

1,803

31,479(31,479)–

544,081

419,108

77,95917,9281,059,079

2,197

1,061,276(31,479)

1,029,796

1,737

2,509

1,800

1,920

7,968

33

8,002

279

8,281

Total

Other
*1

Total

1. “Other” comprises businesses, such as investment business and back-office outsourcing
services that are not included in reportable segments.
2. The 279 million yen adjustment for segment income is 279 million yen of unallocatedcorporate income. The main component of the unallocated corporate income is income andloss that are not attributable to reportable segments.
3. Segment income adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Material impairment loss on fixed assets
In response to a decline in market prices, the Company reduced the book value of idle
assets in its Energy Trade segment to their net realizable value. An impairment loss of 145
million yen was consequently booked for the nine months ended December 31, 2012.
In response to a decline in market prices, the Company reduced the book value of idle
assets in its Car-Life segment to their net realizable value. An impairment loss of 71 million
yen was consequently booked for the nine months ended December 31, 2012.
In response to a decline in market prices, the Company reduced the book value of idle
assets in its Total Home-Life segment to their net realizable value. An impairment loss of 33
million yen was consequently booked for the nine months ended December 31, 2012.

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Nine months ended December 31, 2013 (April 1, 2013 to December 31, 2013)
1. Net sales, income/loss by reportable segment
Millions of yen

Sales
Sales to customers
Intersegment sales ortransfers
Total
Segment income

Notes:

Amounts
on theconsolidated
statements
Adjustments of income*2*3

EnergyTrade

Reportable segment
Total
Power &
Car-Life Home-Life
Utility528,221448,016

85,176

26,7691,088,183

503

1,088,687–

1,088,687

20,744

8,601

499

–

29,845

1,197

31,042(31,042)–548,965456,61785,675

26,7691,118,029

1,700

1,119,729(31,042)

1,088,687

792

2,317

2,188

2,638

7,936

18

7,954

57

8,012

Total

Other
*1

Total

1. “Other” comprises businesses, such as investment business and back-office outsourcing
services that are not included in reportable segments.
2. The 57 million yen adjustment for segment income is 57 million yen of unallocated corporate
income. The main component of the unallocated corporate income is income and loss thatare not attributable to reportable segments.
3. Segment income adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Material impairment loss on fixed assets
In response to a decline in market prices, the Company reduced the book value of idle
assets in its Energy Trade segment to their net realizable value. An impairment loss of 202
million yen was consequently booked for the nine months ended December 31, 2013.
In response to a decline in market prices and other factors, the Company reduced the bookvalue of idle assets in its Car-Life segment to their net realizable value. An impairment loss of
397 million yen was consequently booked for the nine months ended December 31, 2013.
In response to a decline in market prices, the Company reduced the book value of idle
assets in its Total Home-Life segment to their net realizable value. An impairment loss of 19
million yen was consequently booked for the nine months ended December 31, 2013.
The Company reduced the book value of assets with no possibility of future use in its Power& Utility segment to their net realizable value. An impairment loss of 124 million yen wasconsequently booked for the nine months ended December 31, 2013.
With the decision of head office relocation, the Company reduced the book value of certain
corporate assets that are not attributable to reportable segments to their net realizable value.
An impairment loss of 154 million yen was consequently booked for the nine months ended
December 31, 2013.
3. Changes in reportable segments and related information
As the Company is organized into business divisions, our reportable segments correspond tothe business divisions.
In the first quarter ended June 30, 2013, positioning the power and utility business and theoverseas business as priority fields while expanding and enhancing the existing core
petroleum and gas-related business, we implemented the Company-wide organizational
reform, in order to improve speed, flexibility, and governance in each field.
According to the reform, we integrated the Industrial Material Division and the Global Trade
Division into the Energy Trade Division, as well as the Home-Life Division and the Total-Life
Division into the Total Home-Life Division. We also established the new Power & Utility
Division. Businesses including the electricity and steam supply business and the heat supply- 10 -

business which had been previously conducted by the Industrial Material Division wereincorporated into this segment.
The segment information for the nine months ended December 31, 2012 was stated,classified into the segments used in the nine months ended December 31, 2013.

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