This document is an English translation of financial results report released on April 30, 2020 and written initially in Japanese.
The Japanese original should be considered as the primary version.

April 30, 2020

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
<under IFRSs>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Itochu Enex Co., Ltd.
Tokyo Stock Exchange, 1st Section
8133
https://www.itcenex.com/english/
Kenji Okada, Representative Director, President and CEO
Shinichiro Inoue, General Manager, Finance & General Accounting Department
Tel: +81-3-4233-8008

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary results briefing material on financial results:
Holding of financial results presentation meeting:June 17, 2020
June 18, 2020
June 17, 2020
Yes
Yes (for institutional
investors and analysts)(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended March 31, 2020
(from April 1, 2019 to March 31, 2020)(Percentages indicate year-on-year changes.)(1) Consolidated operating results
Profit fromoperatingactivities

Revenue

Fiscal year ended
March 31, 2020
March 31, 2019

Profit before tax

Net profit

Net profit
attributable to
Itochu Enex’s
shareholders

Comprehensive
incomeMillionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%897,427(10.9)

19,257

7.9

19,9782.9

14,185

3.8

12,056

4.3

14,096

7.2

1,007,086

35.2

17,851

4.1

19,414

1.3

13,665

3.3

11,5594.8

13,150(4.2)

Basic earnings per
share attributable
to Itochu Enex’s
shareholders

Diluted earnings
per share
attributable to
Itochu Enex’s
shareholders

Return on equity
obtained as the net
profit attributable
to Itochu Enex’s
shareholders tototal shareholders’equity%Yen
Yen
Fiscal year ended
March 31, 2020
106.81–
9.6
March 31, 2019
102.40–9.7
Reference: Total trading transactions
For the fiscal year ended March 31, 2020: 1,104,548 million yen
For the fiscal year ended March 31, 2019: 1,244,260 million yen
Share of profit (loss) of investments accounted for using equity method
1,768 million yen
For the fiscal year ended March 31, 2020:
1,565 million yen
For the fiscal year ended March 31, 2019:

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

%

%

5.2
5.1

2.1
1.8

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

(2) Consolidated financial position
Total assets
As ofMarch 31, 2020
March 31, 2019

Total shareholders’equityTotal equity

Millions of yen

Millions of yen

Millions of yen

387,657
374,373

151,884
144,566

128,333
122,290

Ratio ofshareholders’equity to total
assetsShareholders’equity per share
%

Yen

33.1
32.7

1,136.89
1,083.37(3) Consolidated cash flows
Net cash flows from(used in) operating
activities
Fiscal year ended
March 31, 2020
March 31, 2019

Net cash flows from(used in) investing
activities

Net cash flows from(used in) financing
activities

Cash and cash
equivalents at end of
the period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

28,10625,403(1,411)(13,410)(26,196)(15,857)

19,24318,725

2. Cash dividends
Annual cash dividends per shareFirst
quarterend
Fiscal year ended
March 31, 2019
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecast)

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

Secondquarterend

Third
quarterend

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

20.00
21.00

–
–

22.00
23.00

42.00
44.00

4,745
4,971

41.0
41.2

4.0
4.0

–

–

–

–

–

Fiscalyear-end

Total–

Note: Cash dividends for the fiscal year ending March 31, 2021 have yet to be determined at this time.

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2021
(from April 1, 2020 to March 31, 2021)
Consolidated earnings forecasts for the fiscal year ending March 31, 2021 have yet to be determined at
this time given that it is not possible to reasonably calculate the potential impact of the novel coronavirus
disease (COVID-19).

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimatesa. Changes in accounting policies required by IFRSs:
Yes
b. Changes in accounting policies other than the above:Nonec. Changes in accounting estimates:
None(Note) For details, please refer to “3. Consolidated Financial Statements and Significant Notes Thereto,(5) Notes to Consolidated Financial Statements” on page 16 of the attached materials.
(3) Number of issued shares (common stock)a. Total number of issued shares at end of period (including treasury stock)
As of March 31, 2020

116,881,106 shares

As of March 31, 2019

116,881,106 sharesb. Number of treasury stock at end of period
As of March 31, 2020

4,000,584 shares

As of March 31, 2019

4,002,462 sharesc. Average number of outstanding shares during period
Fiscal year ended March 31, 2020

112,879,973 sharesFiscal year ended March 31, 2019112,878,838 shares* Note on financial results
Total trading transactions decreased year on year due to the impact resulting from the decrease in sales
volumes of domestic petroleum products and declining sales prices caused by a fall in the crude oil prices.
* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special notes(Caution regarding forward-looking statements and others)
The forecasts and other forward-looking statements in this report are based on information currently
available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual
business and other results may significantly differ from these forecasts due to various factors.
Please refer to “1. Overview of Operating Results and Others, (1) Overview of Operating Results for the
Fiscal Year Ended March 31, 2020” on page 2 of the attached materials for matters relating to earnings
forecasts.

Contents of Attached Materials
1. Overview of Operating Results and Others .............................................................................................. 2(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2020 .................................... 2(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2020 .................................... 6(3) Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2020 andEnding March 31, 2021 ........................................................................................................................ 8
2. Basic Concepts Underlying Selection of Accounting Standards ............................................................. 8
3. Consolidated Financial Statements and Significant Notes Thereto ........................................................ 9(1) Consolidated Statement of Financial Position.................................................................................... 9(2) Consolidated Statement of Comprehensive Income ........................................................................ 11(3) Consolidated Statement of Changes in Equity ................................................................................. 13(4) Consolidated Statement of Cash Flows............................................................................................. 14(5) Notes to Consolidated Financial Statements .................................................................................... 16
Notes on Uncertainties of Entity’s Ability to Continue as Going Concern .................................... 16
Changes in Accounting Policies ......................................................................................................... 16
Segment Information .......................................................................................................................... 17
Earnings per Share ............................................................................................................................. 20
Significant Events after the Reporting Period ................................................................................. 20

-1-

1.

Overview of Operating Results and Others(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2020
The Group has adopted IFRS 16 “Leases” (issued in January 2016; hereinafter, “IFRS 16”) from thefirst quarter ended June 30, 2019. For the details of the impact of the adoption of IFRS 16, pleaserefer to “3. Consolidated Financial Statements and Significant Notes Thereto, (5) Notes toConsolidated Financial Statements, Changes in Accounting Policies.”
1)

Results of operations
During the fiscal year ended March 31, 2020, the tone of the Japanese economy was one of moderate
recovery. However, the outlook has continued to be uncertain due to uncertainties in overseas
economies and geopolitical risk in the Middle Eastern regions. Furthermore, the worldwide spread of
the novel coronavirus disease (COVID-19) since the beginning of the year has suddenly exacerbatedthe sense of stagnation in the domestic and foreign economy.
In addition, Japan’s energy industry has been encountering drastically changing circumstances,
particularly with respect to consolidation of major oil companies, market entry by companies fromother industries as a result of Japan having fully liberalized retail power and city gas sales, alliances
forged across industry lines, and mounting worldwide awareness of climate change.
In this environment, the Itochu Enex Group announced its two-year medium-term business plan
“Moving 2020 Horizons” in April 2019, and has advanced its business based on the following basic
policies:
Overview of medium-term business plan
1. Name of the plan:

Moving 2020 Horizons

2. Period:

Two years (FY2019 to FY2020)

3. Basic policy:

Promotion of Growth Strategies(1) Maintaining and deepening the revenue base: Create Group synergy andfurther cultivate customer base.
(2) Making inroads overseas and in peripheral fields: Proactively invest inoverseas businesses and promote M&A of peripheral businesses.
(3) Creating new businesses: Promote environmental businesses and so on.
Evolution of the Organizational Base
(1) Strengthening Group management: Advance consolidated management
and construct effective governance management structures.
(2) Human resource strategies for growth: Promote diversity and nurture
global human resources.
(3) Promoting innovation: Pursue more efficient operations in existing
business and promote digital solutions.

4. Quantitative plan (FY2020):(1) Net profit attributable to Itochu Enex’s shareholders: ¥12.5 billion(2) ROE: 9.0% or above(3) Dividend payout ratio: 40% or above(4) Planned investment (2-year total): ¥60.0 billion* Content with respect to the aforementioned medium-term business plan is current as of April 26,
2019, and accordingly does not account for the impact of the novel coronavirus disease (COVID19). The Company intends to revise its medium-term business plan to factor in such effects.

-2-

The operating results for the fiscal year ended March 31, 2020 are as follows.
(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019

Revenue

897,427

1,007,086(109,659)

Profit from operating activities

19,257

17,851

1,406

Net profit attributable to Itochu Enex’s shareholders

12,056

11,559497

ChangeRevenue was ¥897,427 million (down 10.9% year on year), due mainly to the impact resulting fromthe decrease in sales volumes of domestic petroleum products and declining sales prices caused by afall in the crude oil prices.
Profit from operating activities was ¥19,257 million (up 7.9% year on year), and net profit attributable
to Itochu Enex’s shareholders was ¥12,056 million (up 4.3% year on year). This was mainly due toincreased profit margins in the electric power business of the Power & Utility Division. Net profit
attributable to Itochu Enex’s shareholders constituted a new record-high profit for a fifth consecutive
year.
2)

Results of operations by segment
Results of operations by segment are as follows. Following the reorganization of the Group carriedout on April 1, 2019, the Mobility Life Department was included in the Life & Industrial Energy
Division. In line with this, the classification of reportable segments has been changed to the HomeLife Division, Life & Industrial Energy Division and Power & Utility Division from the first quarter
ended June 30, 2019.
In addition, following the reorganization of the Group carried out on October 1, 2019, the Life &Industrial Energy Division was reorganized into two divisions: the Car-Life Division and Industrial
Business Division. In line with this, the classification of reportable segments has been changed to theHome-Life Division, Car-Life Division, Industrial Business Division and Power & Utility Divisionfrom the third quarter ended December 31, 2019.
For that reason, the year-on-year comparisons have been recalculated based on the reportablesegments as they exist after the reorganization carried out on October 1, 2019.
Home-Life Division(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019

Revenue

89,08494,350(5,266)

Profit from operating activities

2,799

3,555

(756)

Net profit attributable to Itochu Enex’s shareholders

2,113

3,068

(955)

ChangeIn the Home-Life Division during the fiscal year ended March 31, 2020, the number of customers
under direct LP gas supply contracts slightly increased to approximately 551,000 from the end of theprevious fiscal year due to restructuring such as the establishment of Itochu Enex Home-Life Shikoku
Co., Ltd. in the Shikoku area. LP gas sales volume declined year on year due to the impact of a warm
winter and lower demand for gas for automotive use caused by the increasing number of hybrid taxi
vehicles.
Regarding sales of electricity for households, the division promoted the expansion of the customer baseby focusing mainly LP gas customers. As a result, the number of supply contracts increased by around
17,000 for a total of approximately 98,000, compared with the end of the previous fiscal year.

-3-

In the industrial gas sales business, sales volumes posted year-on-year declines due to the decrease in
the sales volume of hydrogen associated with a decline in the export of electronic components, and thelower sales of carbonic acid gas caused by a decrease in consumption at restaurants, etc., associatedwith the impact of the novel coronavirus disease (COVID-19).
As a result of these activities, the operating results for the fiscal year ended March 31, 2020 are as
follows.
Revenue was ¥89,084 million (down 5.6% year on year), due mainly to the lower sales price caused bya fall in the import price and the decrease in the sales volume of LP gas associated with a warm winter.
Profit from operating activities was ¥2,799 million (down 21.3% year on year). This was due mainly tothe decrease in the sales volume associated with a warm winter.
Net profit attributable to Itochu Enex’s shareholders was ¥2,113 million (down 31.1% year on year).
This was due mainly to a decrease in earnings of associates accounted for by the equity method as aresult of the impact of inventories, etc. in relation to a fall in the LP gas import price.
Car-Life Division(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019542,697624,329(81,632)

Profit from operating activities

8,239

9,230

(991)

Net profit attributable to Itochu Enex’s shareholders

4,584

5,150

(566)

Revenue

ChangeLooking at the Car-Life Division during the fiscal year ended March 31, 2020, in the Car-Life Stations(CS)*1 business, the number of the CS was 1,704, a decrease of 62 from the end of the previous fiscal
year. Sales volumes of petroleum products decreased year on year due to a decrease in the number ofCS, increasing fuel efficiency of vehicles, and the impact of a warm winter. On the other hand, theretail market for petroleum products continued to see robust sales.
In the automotive business, our car dealer business subsidiary OSAKA CAR LIFE GROUP CO., LTD.
experienced year-on-year decline in sales volume in reaction to the consumption tax hike and theimpact of the novel coronavirus disease (COVID-19).
As a result of these activities, the operating results for the fiscal year ended March 31, 2020 are as
follows.
Revenue was ¥542,697 million (down 13.1% year on year), due mainly to a decrease in sales volume ofdomestic petroleum products and declining sales prices caused by a fall in the crude oil prices.
Profit from operating activities was ¥8,239 million (down 10.7% year on year). Net profit attributable
to Itochu Enex’s shareholders was ¥4,584 million (down 11.0% year on year). This was mainly due tothe decline in the number of vehicles sold in the car dealer business and the reaction to the temporary
revenue recognized in the previous fiscal year.
*1

Car-Life Stations: Car-Life Stations are service stations offering multiple services provided by the Company.

-4-Industrial Business Division(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019

175,154

194,948(19,794)

Profit from operating activities

2,810

2,449

361

Net profit attributable to Itochu Enex’s shareholders

1,977

1,705

272

Revenue

ChangeLooking at the Industrial Business Division during the fiscal year ended March 31, 2020, in theindustrial petroleum product sales business, sales volumes decreased year on year, mainly due to theimpact of a decline in domestic demand for petroleum products driven by a transition to low-carbon
energy.
In the asphalt sales business, sales were steady, and sales volumes rose year on year.
In the marine fuel sales business, as a result of expanding transactions including starting to supply new
shipping routes, domestic sales volumes rose year on year.
As a result of these activities, the operating results for the fiscal year ended March 31, 2020 are as
follows.
Revenue was ¥175,154 million (down 10.2% year on year), due mainly to a decrease in sales volume ofindustrial petroleum products and declining sales prices caused by a fall in the crude oil prices.
Profit from operating activities was ¥2,810 million (up 14.7% year on year). Net profit attributable to
Itochu Enex’s shareholders was ¥1,977 million (up 16.0% year on year). This was mainly due to anincrease in sales volume for asphalt and marine fuel in Japan.
Power & Utility Division(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019

Revenue

90,49293,459(2,967)

Profit from operating activities

5,825

2,728

3,097

Net profit attributable to Itochu Enex’s shareholders

3,537

1,970

1,567

ChangeLooking at the Power & Utility Division during the fiscal year ended March 31, 2020, retail electricity
sales volumes decreased year on year due to a downturn in large, high-voltage power contracts forbusiness users, despite an increase in volume of low-voltage power sales to households.
In the heat supply business*2, demand for heat decreased year on year due to lower summer
temperatures than in the previous fiscal year.
As a result of these activities, the operating results for the fiscal year ended March 31, 2020 are as
follows.
Revenue was ¥90,492 million (down 3.2% year on year) due mainly to the decline in volume of highvoltage power sales in the areas of sales and supply/demand management in the electric powerbusiness.
Profit from operating activities was ¥5,825 million (up 113.5% year on year). Net profit attributable to
Itochu Enex’s shareholders was ¥3,537 million (up 79.5% year on year). This was mainly due to anincrease in profit margins in the electric power business with a stable electricity procurement.
*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.

-5-

3)

Forecasts of consolidated financial results for the fiscal year ending March 31, 2021
In the forecasts of consolidated financial results for the fiscal year ending March 31, 2021, we areencountering a rapidly mounting sense of uncertainty looking forward given a current situation
where future trends are difficult to predict. This comes amid developments such as stagnating
economic activity and a slowdown in investment brought about by the worldwide spread of the novel
coronavirus disease (COVID-19), as well as sluggish consumer spending brought about by
continuation of voluntary stay-at-home directives. Even in the energy sector, there is ongoing impact
on energy consumption as demand in the industrial sector has declined due to the lower production.
Given such circumstances, there is currently much uncertainty concerning the impact on earnings andwe have determined that it is difficult to calculate reasonable earnings forecast for the fiscal year
ending March 31, 2021 so we have left it pending. We will promptly make an announcement when
we are in a position to calculate the earnings forecast.

(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2020
1) Analysis of assets, liabilities, equity and cash flows
Assets, liabilities and equity(Millions of yen)
As of March 31, 2020

As of March 31, 2019

ChangeTotal assets

387,657

374,373

13,284

Total liabilities

235,773

229,807

5,966

Total equity

151,884

144,566

7,318

Total assets amounted to ¥387,657 million as of March 31, 2020, an increase of ¥13,284 million fromMarch 31, 2019. This increase mainly reflected an increase in property, plant and equipment of ¥45,271
million with the application of IFRS 16. Total liabilities amounted to ¥235,773 million, an increase of¥5,966 million from March 31, 2019, mainly due to an increase in lease liabilities of ¥51,163 million withthe application of IFRS 16. Total equity totaled ¥151,884 million, an increase of ¥7,318 million fromMarch 31, 2019, due to factors including an increase of ¥12,056 million from net profit attributable to
Itochu Enex’s shareholders, a decrease of ¥5,278 million by payment of cash dividends and a decrease of¥1,535 million with the application of IFRS 16.
We consequently ended the fiscal year with a ratio of shareholders’ equity to total assets of 33.1%.
Cash flows
The group has set goals in FY 2020 of net profit attributable to Itochu Enex’s shareholders of ¥12.5 billion
and ROE of 9.0% or above. Using the cash flow generated from our core businesses, we are proactively
investing in new businesses. Going forward, while further evolving group management and creating abalanced asset portfolio, we will build a system that can create synergies among our businesses.
The spread of the novel coronavirus disease (COVID-19) does not substantially affect cash flow for thecurrent fiscal year. With respect to financing capacity for the time being, we have sufficiently secured
account overdraft facilities and commercial paper issuance facilities, in addition to maintaining ample
cash and cash equivalents. Moreover, we are essentially free of debt amid a situation where we havemaintained healthy levels of debt thus far, which is currently reflected by our net debt-equity ratio (net
DER) of 0.05 times.

-6-

(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019

Cash flows from operating activities

28,10625,403

2,703

Cash flows from investing activities(1,411)(13,410)

11,999[Free cash flows][26,695][11,993][14,702]

Cash flows from financing activities(26,196)(15,857)(10,339)

Net increase in cash and cash equivalents

499(3,864)4,363

Effect of exchange rate changes on cash and cash
equivalents

19

16

3

19,24318,725

518

Cash and cash equivalents at the end of theperiodChangeCash and cash equivalents (net cash) totaled ¥19,243 million as of March 31, 2020, up ¥518 million fromMarch 31, 2019.
Cash flows from operating activities(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019

Cash flows from operating activities

28,10625,403

2,703

Changes in working capital and others(8,399)6,082(14,481)

Real operating cash flow*

36,50519,321

17,184

Change*Real operating cash flow excludes working capital, etc. from cash flows from operating activities.

Operating activities provided net cash of ¥28,106 million. Major items included profit before tax of¥19,978 million, depreciation and amortization of ¥19,580 million, and an increase in funds required for
trading of ¥9,539 million. Net cash provided increased ¥2,703 million year on year. Moreover, real
operating cash flow also increased year on year, even after excluding special factors such as an increase of¥9,152 million due to the application of IFRS 16 and income taxes refund of ¥2,533 million.
Cash flows from investing activities
The Group has always made investments with an awareness of capital efficiency based on our investment
strategy. In the two years from FY2019 to FY2020, we are planning investments of ¥20,000 million inmaintaining and deepening our important revenue base that generates cash flow, as well as ¥40,000
million in overseas and peripheral fields and new businesses centered on the Power & Utility Division.
Proactively investing the cash flow generated from our core businesses in new businesses has resulted in¥1,411 million in funds used for investing activities. Cash used included purchase of investments(including investments accounted for by the equity method) of ¥2,825 million, mainly in the Power &Utility Division, acquisition of subsidiaries of ¥5,566 million, and payments for purchase of property,
plant and equipment and investment property of ¥11,941 million. Meanwhile, cash provided included
proceeds from sales and redemption of investments (including investments accounted for by the equity
method) of ¥5,201 million and decrease in deposits paid of ¥8,979 million. Net cash used decreased¥11,999 million year on year.

-7-Cash flows from financing activities
The Group aims to streamline Group-wide financing activities to enhance our corporate value. Enhancing
Group-wide financial management through the introduction of our Group Financial System* resulted in¥26,196 million in funds used for financing activities. Major items included repayments of bonds andborrowings of ¥8,381 million, repayments of lease liabilities of ¥10,804 million, and cash dividends paid
to Itochu Enex’s shareholders of ¥4,859 million. Net cash used increased ¥10,339 million year on year.
*The Group Financial System streamlines fund management and procurement costs by sharing funds within the Group.

2)

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

2018
30.3

2019
32.7

2020
33.1

29.5

26.9

24.6

1.8
27.8

1.3
30.3

0.9
25.0

Ratio of shareholders’ equity to total assets: Total shareholders’ equity / Total assets
Ratio of shareholders’ equity to total assets at market value: Market capitalization / Total assets
Ratio of cash flow to interest-bearing debt: Interest-bearing debt / Cash flow
Interest-coverage ratio: Cash flow / Interest expense(Note 1.) All of the above ratios were calculated using consolidated financial statement data.
(Note 2.) Market capitalization was calculated by multiplying the fiscal-year-end closing share price by
the number of shares outstanding at fiscal year-end (net of treasury stock).
(Note 3.) “Cash flow” is “Cash provided by (used in) operating activities” on the Consolidated
Statement of Cash Flows.
(Note 4.) Interest-bearing debt is all debt, of the debt carried on the Consolidated Statement of
Financial Position, on which interest is payable.
(3) Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2020 and Ending
March 31, 2021
In terms of shareholder returns, we aim to maintain a consolidated dividend payout ratio of at least 40% in
accord with our policy of paying stable dividends on an ongoing basis while maintaining sustained
business growth.
For the fiscal year ended March 31, 2020, we plan to pay a year-end dividend of ¥23 per share.
Meanwhile, our cash dividend forecast for the next fiscal year has yet to be determined given that our
financial results outlook remains unclear at this time. However, we intend to promptly disclose the cash
dividend forecast for the next fiscal year together with our full-year earnings forecasts as soon as ourearnings outlook becomes available.
With respect to internally retained funds, our basic policy is to use such funds to invest in our business tostrengthen our operating foundation and further increase earnings.

2.

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

-8-

3.

Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Statement of Financial Position
As ofMarch 31, 2019ASSETS
Current assets
Cash and cash equivalents
Trade receivables
Other current financial assets
Inventories
Income taxes receivable
Trade advances paid
Other current assets
Total current assets
Non-current assets
Investments accounted for by the equity method
Other investments
Non-current financial assets other than investments
Property, plant and equipment
Investment property
Goodwill
Intangible assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets-9-(Millions of yen)
As ofMarch 31, 2020

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

19,24386,911
28,09524,263
98
128
2,502

199,775

161,240

29,441
4,186
11,29287,5999,819
521
20,091
9,913
1,736

31,583
3,860
11,942
132,870
13,147521
20,005
10,374
2,115

174,598

226,417374,373

387,657

As ofMarch 31, 2019
LIABILITIES AND EQUITYCurrent liabilities
Short-term bonds and borrowings
Trade payables
Lease liabilities
Other current financial liabilities
Income taxes payable
Advances from customers
Other current liabilities(Millions of yen)
As ofMarch 31, 2020

11,217
121,677
–
7,905
3,193
9,651
11,8207,024
83,936
9,591
6,216
4,172
9,437
12,848

165,463

133,224

22,893–23,531
9,936
2,287
5,462
235

18,15652,713
14,225
10,335
1,721
5,255
144

Total non-current liabilities

64,344

102,549

Total liabilities

Total current liabilities
Non-current liabilities
Non-current bonds and borrowings
Lease liabilities
Other non-current financial liabilities
Non-current liabilities for employee benefits
Deferred tax liabilities
Provisions
Other non-current liabilities

229,807

235,773

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

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

19,87818,934
92,761(1,370)(1,870)Total shareholders’ equity

122,290

128,333

22,27623,551

144,566

151,884

374,373

387,657

Non-controlling interests
Total equity
Total liabilities and equity- 10 -

(2) Consolidated Statement of Comprehensive Income
Fiscal year ended
March 31, 2019

(Millions of yen)
Fiscal year ended
March 31, 2020

Revenue
Cost of sales

1,007,086(922,876)

897,427(811,009)

Gross profit

84,21086,418Other income and expense
Selling, general and administrative expenses
Loss from tangible assets, intangible assets and goodwill
Other – net(67,318)
(241)
1,200

(68,858)
(428)
2,125

(66,359)(67,161)

17,851

19,257

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

83
66
(906)
755

58
103
(1,126)(82)

Total financial income and costs(2)(1,047)

Total other income and expense
Profit from operating activities

Share of profit of investments accounted for by the equity method
Profit before tax
Income tax expense
Net profit
Net profit attributable to:
Net profit attributable to Itochu Enex’s shareholders
Net profit attributable to non-controlling interests
Total- 11 -

1,565

1,768

19,414

19,978(5,749)(5,793)

13,665

14,185

11,5592,106

12,0562,129

13,665

14,185Fiscal year ended
March 31, 2019
Other comprehensive income, net of tax effectItems that will not be reclassified to profit or loss
FVTOCI financial assets
Remeasurement of net defined benefit liability
Other comprehensive income of investments accounted for by theequity method
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations
Cash flow hedges
Other comprehensive income of investments accounted for by theequity method(Millions of yen)
Fiscal year ended
March 31, 2020

(108)
(175)

(215)
(90)

(54)

(41)

(10)
25

(7)
82

(193)

182

(515)

(89)

Comprehensive income

13,15014,096Comprehensive income attributable to:Comprehensive income attributable to Itochu Enex’s shareholders
Comprehensive income attributable to non-controlling interests

11,1272,023

12,033
2,063

13,15014,096

Total other comprehensive income, net of tax effect

Total

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

102.40–106.81–

1,244,260(Millions of yen)
1,104,548

Total trading transactions are presented in accordance with the Japanese accounting practices. This item is voluntarily
disclosed by the Company for investors’ convenience and is not required to be disclosed under International Financial
Reporting Standards (“IFRSs”).

- 12 -

(3) Consolidated Statement of Changes in Equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders’ equity

Balance at April 1, 2018

Commonstock

CapitalsurplusRetainedearnings

Other
componentsof equity

Treasury
stock

Total
shareholders’equityNoncontrollinginterests

Total equity

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

116,104

20,962137,066

11,5592,106

13,665

(432)

(432)

(83)

(515)

(432)

11,127

2,023

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

11,559Other comprehensive
incomeComprehensive income

11,559Transactions with owners
Cash Dividends(4,971)

Acquisition of subsidiaryshares from noncontrolling interestsand others

23

23

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

Transfer from othercomponents of equity toretained earnings

(171)

171

Purchase and disposal oftreasury stock(0)
7

Share-based payments
Balance at March 31, 201923

19,87818,922

–

–

(0)

(0)

7
86,769(1,406)(1,873)(250)

122,2907
22,276

144,566

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders’ equity

Balance at April 1, 2019

Commonstock

CapitalsurplusRetainedearnings

Other
componentsof equity

Treasury
stock

Total
shareholders’equityNoncontrollinginterests

Total equity

19,87818,922

86,769(1,406)(1,873)

122,290

22,276

144,566(1,146)(389)(1,535)

121,144

21,887143,031

12,0562,129

14,185

(23)

(23)

(66)

(89)

(23)

12,033

2,063

14,096(4,859)(419)(5,278)Cumulative effect ofaccounting change
Restated balance(1,146)
19,87818,922

Net profit

85,623(1,406)(1,873)

12,056

Other comprehensive
income12,056Comprehensive income
Transactions with owners
Cash dividends(4,859)Acquisition of subsidiaryshares from noncontrolling interestsand others–

Changes due to additional
acquisitions and sales ofinterests in subsidiaries–

Transfer from othercomponents of equity toretained earnings

(59)

59

Purchase and disposal oftreasury stock(0)
12

Share-based payments
Balance at March 31, 2020

19,87818,934

92,761- 13 -(1,370)

–

20

20

–

–

(0)

(0)

3

15

(1,870)128,333

15
23,551

151,884

(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

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

19,414
10,086241
2(1,565)
13,602(4,667)(5,788)
2,935
406
85
(838)
(8,510)–19,97819,580428
1,047(1,768)19,388
8,814(37,741)
1,140
1,613
56
(1,126)(5,836)
2,533

Net cash flows provided by operating activities

25,403

28,106(2,663)(2,825)

103

5,201

–
22
–
(907)
752

(5,566)680
2,905(1,017)
1,316(12,883)(11,941)

1,978

2,616

(832)
193
–
827

(1,980)
22
8,979
199

(13,410)(1,411)

Cash flows from investing activities
Purchase of investments (including investments accounted for by
the equity method)
Proceeds from sales and redemption of investments (including
investments accounted for by the equity method)
Acquisition of subsidiaries, net of cash acquired
Proceeds from acquisition of subsidiaries
Proceeds from sales 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
Decrease in deposits paid – net
Other – net
Net cash flows used in investing activities- 14 -

(Millions of yen)
Fiscal year ended
March 31, 2019
Cash flows from financing activities
Repayments of bonds and borrowings
Repayments of lease liabilities
Net decrease in short-term borrowings
Payments for additional acquisitions of interests in subsidiaries
from non-controlling interests
Cash dividends paid to Itochu Enex’s shareholders
Capital contribution from non-controlling interests
Cash dividends paid to non-controlling interests
Purchase of treasury stock

Fiscal year ended
March 31, 2020

(3,963)–(6,311)(8,381)(10,804)(1,753)

(228)

(30)

(4,971)
75
(459)
(0)

(4,859)
50
(419)
(0)

Net cash flows used in financing activities(15,857)(26,196)

Net increase (decrease) in cash and cash equivalents(3,864)

499

Cash and cash equivalents at the beginning of the period

22,57318,725

Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period- 15 -

16

19

18,725

19,243

(5) Notes to Consolidated Financial Statements
Notes on Uncertainties of Entity’s Ability to Continue as Going Concern
No items to report.
Changes in Accounting Policies
From the fiscal year ended March 31, 2020, the following standard has been applied.
Standard
IFRS 16

Title
LeasesDescription of new/amended
standards or interpretations
Amendments to accounting forlease contracts

Following the application of IFRS 16, for leases as lessee in cases where the contract is a lease or contains
a lease, right-of-use assets and lease liabilities are recorded in the consolidated statement of financial
position on the commencement date of the lease.
Lease liabilities are measured using the present value of unpaid lease payments. Lease payments areallocated to financial costs and repayments of lease liabilities based on the effective interest method withfinancial costs recognized in the consolidated statement of comprehensive income.
Right-of-use assets are measured at cost, with the acquisition cost on the commencement date of the lease
being determined, and the asset being depreciated thereafter using the straight-line method over the period
from the commencement date to the end of the asset’s useful life or of the lease term, whichever is theshorter.
Furthermore, the Group has not recognized right-of-use assets and lease liabilities for leases of intangible
assets, short-term leases with a lease term of less than 12 months, and leases for low-value assets. Lease
payments related to the above are recognized as expense on either a straight-line basis or some othersystematic basis to the total lease payments over the lease term.
In accordance with the transition under IFRS 16 upon its application, the Group has recognized thecumulative effect of initially applying IFRS 16 as an adjustment to the opening balance of retained
earnings for the fiscal year ended March 31, 2020. The weighted average of the lessee’s incremental
borrowing rate applied to lease liabilities recognized in the consolidated statement of financial position asof the date of initial application of the standard is 0.5%.
A schedule reconciling the operating lease contracts disclosed as of the end of the previous fiscal year
under IAS 17 “Leases” (hereinafter, “IAS 17”) and the lease liabilities recognized in the consolidated
statement of financial position as of the date of initial application of the standard is provided below.

Noncancelable operating lease contracts disclosed (March 31, 2019)
Operating leases discounted using the incremental borrowing rate (April 1, 2019)
Finance lease obligations disclosed (March 31, 2019)
Cancelable operating lease contracts, etc.
Lease liabilities as of April 1, 2019

Amount(Millions of yen)
6,168
6,096
11,141
48,83566,072

In applying IFRS 16, the Group has elected to apply the practical expedient provided in paragraph C3 of
IFRS 16 to grandfather the assessment of whether a contract contains a lease under IAS 17 and IFRIC 4“Determining whether an Arrangement contains a Lease.”
With regard to leases previously classified as operating leases under IAS 17, these were recognized asright-of-use assets and lease liabilities on the date of initial application of IFRS 16, with lease liabilities- 16 -

measured using the present value of unpaid lease payments at commencement, discounted by the lessee’s
incremental borrowing rate as of the initial application of the standard. In addition, with regard to leases
that were previously classified as finance leases under IAS 17, the book values of right-of-use assets andlease liabilities at the date of initial application of the standard are measured at the book value of leaseassets and lease obligations respectively on the day directly before the date of initial application, based on
IAS 17.
As a result, total assets increased by ¥53,395 million, lease liabilities increased by ¥54,931 million, while
retained earnings decreased by ¥1,146 million as of the beginning of the fiscal year ended March 31,
2020.
In relation to the application of IFRS 16, the Group has elected to use the following practical expedients.
Initial direct costs are excluded from the measurement of right-of-use assets performed at the date of
the initial application of the standard.

When computing the lease term in cases where the contract contains an option to extend or cancel thelease, etc., a post-facto decision shall be taken.

Segment Informationi) Outline of Reportable Segments
The reportable segments of the Group are components of the Group whose separate financial
information is available. These segments are periodically evaluated by the Board of Directors indeciding how to allocate management resources and in assessing performance.
The Group is organized into business divisions, consolidating related businesses. Each businessdivision plans strategies for each category of target customers and markets and develops businessactivities. The Group has four reportable segments that correspond to the business divisions, namely
the “Home-Life Division,” “Car-Life Division,” “Industrial Business Division,” and “Power & Utility
Division.”
The Home-Life Division engages in sales and services involving LP gas, kerosene, town gas (Nakatsu
City, Oita Prefecture and Kanto region), industrial gas, electricity, household equipment, smart energy
equipment, remodeling, residential lithium-ion electricity storage systems, pressure resistanceinspection for gas containers and welding materials.
The Car-Life Division engages in sales and services involving gasoline, kerosene, diesel oil, electricity,
automobiles, car rental, lifestyle and automotive products, import/export of petroleum products, andterminal tank rental.
The Industrial Business Division engages in sales and services involving gasoline, kerosene, diesel oil,fuel oil, LP gas, high-grade urea solution “AdBlue,” asphalt, marine fuel, recycling of fly ash, andrecovery and recycling of slop.
The Power & Utility Division is engaged in the sale of electricity (coal-fired, natural gas-fired, wind,hydropower, photovoltaic power) and steam, as well as in providing district heating services,comprehensive energy services, electricity/heat supply services, electric power supply/demand
management services, and asset management business.
In the first quarter ended June 30, 2019, the now former Mobility Life Department was included in theLife & Industrial Energy Division.
In addition, in the third quarter ended December 31, 2019, the Life & Industrial Energy Division was
reorganized into two divisions: the Car-Life Division and Industrial Business Division.
In line with this, the classification of reportable segments has been changed from the Home-Life
Division, Life & Industrial Energy Division and Power & Utility Division to the Home-Life Division,
Car-Life Division, Industrial Business Division and Power & Utility Division from the third quarter
ended December 31, 2019.
Due to the change in segments, segment information for the previous fiscal year has been adjusted
based on the classification of reportable segments after the change.

- 17 -

ii) Information on Reportable Segments
Fiscal year ended March 31, 2019
(Millions of yen)
Reportable segment
Home-Life
Division

Car-Life
Division

Industrial
Business
Division

Power &
Utility
Division

Total

Revenue from externalcustomers

94,350624,329

194,948

93,459Intersegment revenue

365

9,187

7,778

Total revenue

94,715633,516Gross profit

22,397

Selling, general andadministrative expenses

Adjustment

Consolidated

1,007,086–

1,007,086

5,969

23,299(23,299)–

202,726

99,4281,030,385(23,299)

1,007,086

49,452

5,227

7,134

84,210–84,210(18,927)(41,070)(2,722)(4,662)(67,381)63(67,318)

Profit (loss) from tangible
assets, intangible assets
and goodwill

(172)

(192)

(19)

324

(59)

(182)

(241)

Other profit (loss)

257

1,039

(37)

(67)

1,192

8

1,200

Profit from operating
activities

3,555

9,230

2,449

2,728

17,962(111)

17,851

Financial income and costs

(24)

(258)

(27)

516

207

(209)

(2)

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

1,251

100

39

175

1,565

–

1,565

Profit before tax

4,782

9,072

2,461

3,419

19,734(320)

19,414

Net profit attributable to
Itochu Enex’s shareholders

3,068

5,150

1,705

1,970

11,893(334)

11,559Depreciation andamortization(2,698)(2,919)(448)(3,494)(9,559)(527)(10,086)

Impairment loss

(251)

(216)

–

–

(467)

(171)

(638)

Total assets

65,584

153,117

36,21782,439337,357

37,016374,373

Investments accounted
for by the equity method

18,774534

21

10,11229,441–

29,441

Capital expenditures

3,259

1,818

683

6,660

12,420

1,295

13,715

105,112813,267

228,946

96,935

1,244,260–

1,244,260

Revenue

Other items

Total trading transactions(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of negative ¥334 million to net profit attributable to Itochu Enex’s shareholders represents corporate
profit (loss) not allocated to reportable segments.
The adjustment of ¥37,016 million to total assets represents corporate assets not allocated to reportable segments.
Total trading transactions are unaudited items voluntarily disclosed by the Company and represent the amount ofsales in accordance with Japanese accounting practices.

- 18 -

Fiscal year ended March 31, 2020
(Millions of yen)
Reportable segment
Home-Life
Division

Car-Life
Division

Industrial
Business
Division

Power &
Utility
Division

Total

89,084

542,697

175,154

90,492

Intersegment revenue

81

14,174

9,188

Total revenue

89,165556,871

Gross profit

21,958Selling, general andadministrative expenses

Adjustment

Consolidated

897,427–

897,4273,615

27,058(27,058)–

184,342

94,107924,485(27,058)

897,427

49,221

5,624

9,615

86,418–86,418(19,449)(41,280)(2,926)(4,762)(68,417)(441)(68,858)

Profit (loss) from tangible
assets, intangible assets
and goodwill

172

(256)

(19)

(321)

(424)

(4)

(428)

Other profit (loss)

118

554

131

1,293

2,096

29

2,125

Profit from operating
activities

2,799

8,239

2,810

5,825

19,673(416)

19,257

Financial income and costs

(23)

(532)

23

(415)

(947)

(100)

(1,047)

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

825

126

30

787

1,768

–

1,768

Profit before tax

3,601

7,833

2,863

6,197

20,494(516)

19,978Net profit attributable to
Itochu Enex’s shareholders

2,113

4,584

1,977

3,537

12,211(155)

12,056

Depreciation andamortization(3,759)(8,364)(1,380)(4,735)(18,238)(1,342)(19,580)

Impairment loss

(145)

(204)

–

(144)

(493)

–

(493)

Total assets

67,240164,239

33,291

91,921

356,691

30,966387,657

Investments accounted
for by the equity method

19,049511

90

11,93331,583–31,583

Capital expenditures

3,688

3,220

150

5,992

13,050871

13,921

Total trading transactions

98,328

706,719

206,332

93,169

1,104,548–

1,104,548

Revenue
Revenue from externalcustomers

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of negative ¥155 million to net profit attributable to Itochu Enex’s shareholders represents corporate
profit (loss) not allocated to reportable segments.
The adjustment of ¥30,966 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.

- 19 -

iii) Products and Services Information
This information is omitted because the classification of products and services is the same as theclassification of reportable segments.
iv) Geographic Information
This information is omitted because revenue from external customers in Japan accounts for a large
percentage of the revenue recorded in the consolidated statement of comprehensive income for the
fiscal years ended March 31, 2019 and 2020.
v) Major Customers Information
This information is omitted because there is no major external customer from which revenue accounts
for 10% or more of the revenue recorded in the consolidated statement of comprehensive income forthe fiscal years ended March 31, 2019 and 2020.
Earnings per Share
Basic earnings per share for the fiscal years ended March 31, 2019 and 2020, were calculated asfollows:
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

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

11,55912,056Weighted-average number of ordinary shares outstanding(Thousands of shares)

112,879

112,880

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

102.40106.81(Note)

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

Significant Events after the Reporting Period
No items to report.

- 20 -