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

FY2022 Financial Resultsfor First Six Months
November 11, 2022

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ITOCHUENEX CO.,LTD.
All rights
reserved.
Copyright©2020
ITOCHUENEX CO.,LTD.
All rights
reserved.

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

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1

Results Highlights

Overview of Consolidated Financial Results for First Six Months of FY2022■ Quarterly net profits increased 1.4 billion yen to 6.9 billion yen, up 25.5% year on year.
■ The Industrial Business and Car-Life Business were revenue drivers, although the Power & Utility
Business struggled due to rising resource prices.
■ Steady performances were recorded in businesses such as marine fuel sales, environment-related,
corporate fleet refueling card and asphalt in the Industrial Business, as well as the CS (*) retailingbusiness in the Car-Life Business.
( )* CS: Stands for car life station, which is a multi-service station offered by the Company.

Net sales

499.5 billion yen 25.5

Grossprofit44.0 billion yen 5.6(+(+% year on year)% year on year)

Operatingprofit10.8 billion yen 18.5

% year on year)

Net profit

6.9 billion yen 25.5

% year on year)(+(+

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2

Contents

1. Overview of Consolidated Financial Results forFirst Six Months of FY2022(1) Overview of the Entire Company(2) Overview by Segment

2. Progress on Medium-Term Business Plan
3. By segment/Progress in FY2022/1H and Policy for
FY2022/2H◇ Appendix
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3

Overview of Consolidated Financial Resultsfor First Six Months of FY2022(1) Overview of the Entire Company

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4

Summary of Financial Results for 1H/FY2022
Profit increased thanks to the steady performance of the Industrial Business and
Car-Life Business.
FY2021/1H Results

FY2022/1H Results

Net sales

3,981

4,995

+1,014Gross profit

417

440

+23

Selling, general and administrative
expenses

-328

-333

-5

Operating profit

91

108

+17

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

10

13

+2

Net profit

55

69

+14

78.8%

75.7%

-3.1pt23

24+1(100 million yen)

Ratio of SG&A expenses to gross profit
Dividends (yen/share)

Changes

FY2022 Plan

❏ Quarterly net profits increased 1.4 billion yen to 6.9 billion yen, up 25.5% year on year.
❏ The Industrial Business and Car-Life Business were revenue drivers, although the Power &Utility Business struggled due to rising resource prices.
❏ Steady performances were recorded in businesses such as marine fuel sales, environmentrelated, corporate fleet refueling card and asphalt in the Industrial Business, as well as CS(*)
retailing business in the Car-Life Business.

Achievement rate

10,000

50%

194

56%

130

53%

[Reference]Quarterly results (net profit)

58

44
27 29

19

1Q 2Q 3Q 4Q
FY202125

1Q 2Q 3Q 4Q
FY2022

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5

Net Profit by Segment
Profit increased thanks to the steady performance of the Industrial Business and
Car-Life Business.

(100 million yen)

FY2021/1H
Results

FY2022/1H
Results

90

Major factors for increase/decrease▋Home-Life (YoY: +¥200 million, Percent of the plan achieved: 30%)

80

69

Profit increased mainly due to the acquisition of new customers, the effect of inventories
and contribution by associates accounted for by the equity method.

70
60

55

50

6

40

16

▋Car-Life (YoY: +¥800 million, Percent of the plan achieved: 56%)8

24

▋Industrial Business (YoY: +¥1,800 million, Percent of the plan achieved:
117%)
Profit increased due to operations in an appropriate response to the market
environment, in addition to the steady performance of each business.

30

15
33

20
10

17

0

2

Profit increased with the steady performance of the CS retailing business and higher
profitability per unit in the dealer business.

3▋Power & Utility (YoY: -¥1,400 million, Percent of the plan achieved: 9%)
Profit decreased, reflecting narrower electricity retail margins due to higher procurement
prices caused by surging resource prices.

2
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6

Analysis of Net Profit in 1H by Segment(100 million yen)

Major factors
for increase/decrease

Effect of inventories
Share of profit (loss) ofinvestments accounted
for using the equity
method+5.0

CS business
Dealer business+1.7▋Power & Utility▋Industrial
Business▋Car-Life▋Home-Life

+7.1
+0.8

Exports/imports ofproducts
Marine fuelEnvironmental
businesses
Fuel cards
Asphalt
Other

+8.7
+4.8
+2.3
+1.8
+0.7
-0.6

Financial businessElectric power
generation business
Provision of heat
Electricity sales
Other▋Other

+1.7
-0.2
-2.2
-13.0
-0.5

+17.7

+0.5

+7.9

55.3

69.4

-14.2

+2.2

+14.1
FY2021/1H
Results

FY2022/1H
Results
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7

Financial Position
Trade receivables/trade payables decreased due in part to seasonal factors.
❏ Total assets: Decreased 16.4 billion yen from the end of the previous
year due to decreases in trade receivables/trade payables
and came to 430.6 billion yen.

❏ Shareholders’ equity:
Increased 4.8 billion yen from the end of the previous year
to 149.1 billion yen, mainly reflecting a rise in net profit.
❏ Net DER:

Net DER increased by 0.03 from the end of the previous
year, to -0.01, reflecting a decrease in working capital due
to seasonal factors.
(100 million yen)
End of March2022 Results

Total assets
Net interest-bearing debt

Shareholders’ equity
Ratio of shareholders’equity to net assets

Net DEREnd of
September 2022
Results

4,470

4,306

4,400
3,900

0.2

3,400
2,900
0.1

2,400
1,900

1,400

-164

900

-52

-9

+43

400

1,443

1,491

+48

32.3%

34.6%

+2.3pt

+0.03

1,491

1,443

Changes

4,306

-0.01

0.3

4,900

4,470

-0.04

(Times)(100 million yen)

-100

-0.01

0

-0.04

-52

-9

End of March 2022

End of September 2022

-0.1

Total assets

Net interest-bearing debt

Shareholders' equity

Net DER (Right-hand scale)

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8

Cash Flows
Continued to create ample cash flows from operating activities
Cash FlowsFY2019/1H Results

FY2020/1H Results

FY2021/1H Results

FY2022/1H Results

Cash flows from operating activities

71

221

181

119

Cash flows from investing activities

-72

59

-26

-55

(Free cash flows)

-1

280

155

63

Cash flows from financing activities

28

-104

-95

-148

182

170

182

189

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

300

Operating CF

200

Investing CF

100

Financing CF
FCF
Substantive
operating CF

0

280
182
221
71

-1

28

189

182

170
181

155
119

63

59

-72

-104

-26

-95

-55
-148

-100

-200

FY2019/1H
Results

FY2020/1H
Results

FY2021/1H
Results

FY2022/1H
Results

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9

Investment Trends
The reinforcement of foundations was carried out steadily.
Growth investments are planned with a focus on the Power & Utility Division.
(100 million yen)(100 million yen)

300

250

Investment results (Company-wide)

50

Investment results for the first half of
FY2022 by segment

40

244
223

200

222

30

186

34

23
18

20

164

6

10

150

6

0

87

100

50

0
FY2017FY2018FY2019FY2020

FY2021

FY2022(Full year)(Full year)(Full year)(Full year)(Full year)(First half)

Home-Life

Car-Life

Industrial
Business

Power & Utility

CommonMajor investment results▋Home-Life

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

▋Car-Life

Investment in the auction business, the renovation of CS
and dealer stores, etc.

▋Industrial Business

Oil terminal renovation, etc.

▋Power & Utility

Solar power plants, heat supply facilities, etc.

▋CommonRebuilding core systems, etc.

(*)

Abbreviation for Low Power Wide Area. Communication method for achieving long-distance telecommunication
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with reduced power consumption.
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10

FY2022 Shareholder Returns
The mid-term dividend and annual dividend are expected to be 24 yen and 48 yen, respectively.
60
Commemorative
dividends

50

48
6

40

24
30

42

40

20

44

44

16

16

20

22

24

Continue stable payment

Consolidated
dividend payout
ratio

40% or more

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

48

32
10

Dividend policy

24

Annual dividend at 48 yen
will be maintained in FY2022.

0
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Dividend
payoutratio (%)

42.7

58.6

46.8

32.4

30.5

45.2

36.3

34.8

41.0

41.0

41.2

46.4

40% ormore

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11

(Reference) Market Trends
Crude oil and CP prices were on a downward trend while power prices
remained at a high level.
Most recent 1 year (Oct. 2021 - Sep. 2022)

Trends in Dubai crude oil price
81.59
40.66

80.28
43.39

73.19
49.82

Average price($/bbl)

83.46
54.77

Year ago value

110.89

92.34
60.86

64.41

102.79108.13

62.89

66.31

113.2471.57

103.12
72.90

96.60

90.91

94.71

69.49

72.61

60.81
Change from theprevious year: +33.9

2021/102021/112021/12

Trends in propane CP price
800

375

2021/10

870

430

795
450

2022/12022/22022/3

775
605

550

895

940

2021/122022/12022/62022/72022/2

Electricity wholesale transactions market

850

750

2022/82022/92022/32022/4495

530

2022/52022/6

788

725

670

665

620

660

650

625
560

2021/112022/5

Average price($/MT)
740

2022/42022/72022/82022/9Average price(Yen/KWh)

63.07

12.06

5.05
2021/10

18.47

17.35

5.56

13.93

2021/112021/1221.94

2022/1

547
Change from theprevious year: +241

Change from theprevious year: +8.34
20.64

26.19

7.50
2022/2

17.76

16.95

21.27

24.80

25.52

24.02

20.58

6.64

6.69

6.74

7.12

8.05

8.58

7.91

12.24

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12

Overview of Consolidated Financial Resultsfor First Six Months of FY2022(2) Overview by Segment

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13

Results by Segment(100 million yen)

FY2021/1H
Results

FY2022/1H
Results

Changes

Rate ofchange %FY2022 Plan

Achievement
rate

Net sales
Operating profit
Net profit

3,981
91
55

4,995
108
69

+1,014+17+14+25.5%+18.5%+25.5%

10,000
194
130

50%
56%
53%

▋Home-Life

Net sales
Operating profit
Net profit

347
4
6

399
5
8

+52
+1
+2

+15.0%+27.7%+40.1%

―
―
26

―
―
30%

▋Car-Life

Net sales
Operating profit
Net profit

2,458
32
16

2,682
44
24

+224
+12
+8

+9.1%
+37.8%+50.1%

―
―
42

―
―
56%

▋Industrial BusinessNet sales
Operating profit
Net profit

809
21
15

1,369
48
33

+561
+27
+18

+69.4%+124.8%+117.8%

―
―
28

―
―
117%

▋Power & Utility

Net sales
Operating profit
Net profit

368
31
17

545
8
3

+177
-23
-14

+48.1%-74.0%-81.4%

―
―
37

―
―
9%

Company-wide

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14

▋Home-Life
Profit increased mainly due to the acquisition of new customers, the effect of
inventories and the contribution by associates accounted for by the equity method.
(100 million yen)
Major factors for increase/decrease(Net profit)

FY2021/1H Results

FY2022/1H Results

Gross profit

96

95

-1

Selling, general andadministrative expenses

-93

-91

+3

Operating profit

4

5

+1

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

7

8

+2

Net profit

6

8

+2

Quarterly results (net profit)

9
4

2

13 10

-3

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2022
FY2021

Changes

The number of customers under direct contract rose
approx. 7,000 from the end of the previous fiscal year,
to approx. 563,000, reflecting stepped up activities toacquire new customers and business rights. For LP gas
sales volume, demand for gas business and gas forautomobile use were recovering. However, theoverall sales volume decreased slightly from the yearago level due to a decline in demand for gas forhousehold use reflecting the rebound from the demand
driven by those refraining from going out in the previous
fiscal year.
In terms of profitability, profit increased mainly due tothe acquisition of new customers, the effect of
inventories and the contribution by associates
accounted for by the equity method.

Profit (loss) of majoraffiliates

FY2021/1H
Results

FY2022/1H
Results

Changes

ITOCHU ENEX HOME-LIFENISHI-NIHON

2

2

-0

ECORE
(The Company’s equity 51%)

3

3

-0

ENEARC(The Company’s equity 50%)

3

2

-1

Achievementrate

FY2022 Plan

26

30%

End of March2022

End of
September
2022

Number of customers
under direct LP gas
supply contracts

557

563

+7

Number of customers forelectricity retail

118

119

+1

FY2021/1H
Results

FY2022/1H
Results

199

195

Number ofcustomers (1,000)

Sales volumes
LP gas (thousand tons)

Changes

Changes-2%

Industrial gas
33
34
+2%
(thousand tons)
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15

▋Car-Life
Profit increased with the steady performance of the CS retailing business andhigher profitability per unit in the dealer business.
(100 million yen)
FY2021/1H Results

FY2022/1H Results

226

238

Gross profit
Selling, general andadministrative expenses
Operating profit

-3

32

44

+12

0

0

-0

16

24

+8

Profit (loss) ofmajor affiliates

FY2021/1H
Results

FY2022/1H
Results

Changes

6

11

+5

13
13 11
10
7

The number of CS decreased by 6 from the end of
the previous fiscal year to 1,630. The sales volume
of oil products remained unchanged year on year.
The number of cars sold decreased year on year,
reflecting a decline in vehicle production due to theshortage of semiconductors, offsetting strong salesof new models.
In terms of profitability, profit increased due to thesteady performance of the CS retailing business andimproved profitability per unit in the dealer business.

-197

Quarterly results (net profit)

8

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2022
FY2021

ENEX FLEETOsaka Car Life Group(The Company’s equity 51.95%)

Achievementrate

FY2022 Plan

+13

-194

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

Major factors for increase/decrease(Net profit)

Changes

4

42

5

+1

56%

FY2021/1H
Results

FY2022/1H
Results

Gasoline (thousand KL)

1,058

1,080

+2%

Kerosene (thousand KL)

124

95

-23%

Diesel oil (thousand KL)

1,138

1,124

-1%

New cars (thousand units)

12

12

-5%

Used cars (thousand units)

11

9

-16%

Sales volumes

Changes

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16

▋Industrial BusinessProfit increased due to operations in an appropriate response to the market
environment, in addition to the steady performance of each business.
(100 million yen)
Major factors for increase/decrease(Net profit)

FY2021/1H Results

FY2022/1H Results

Gross profit

41

72

+31

Selling, general andadministrative expenses

-19

-21

-2

Operating profit

21

48

+26

0

-0

-0

15

33

+18

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

ChangesIn the marine fuel business, sales of heavy oil for
ocean going vessels remained strong. The sales
volume of corporate fleet refueling cards increased
year on year, reflecting activities to find newcustomers. The revenue base in each business was
expanded through initiatives including appropriate
sales prices set in response to the supply demandenvironment of various products.
Profit increased due to operations in appropriate
response to the market environment, in addition to
the steady performance of each business.

Quarterly results (net profit)

20
9

8

10

13

6

1Q

2Q 3Q 4Q
FY20211Q 2Q 3Q 4Q
FY202228

FY2021/1H
Results

Sales volumes

Achievementrate

FY2022 Plan

FY2022/1H
Results

117%

Changes

Gasoline (thousand KL)

211

179

-15%

Kerosene (thousand KL)

65

63

-2%

Diesel oil (thousand KL)

462

471

+2%

Heavy fuel oil (thousand KL)

743

896

+21%

Asphalt (thousand tons)

126

128

+1%

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17▋Power & Utility
Profit decreased, reflecting narrower electricity retail margins due to higher
procurement prices caused by surging resource prices.
(100 million yen)
Major factors for increase/decrease(Net profit)

FY2021/1H Results

FY2022/1H Results

Gross profit

54

35

-19

Selling, general andadministrative expenses

-26

-29

-3

Operating profit

31

8

-23

3

4

+1

17

3

-14

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

Quarterly results (net profit)

29
10

10

8
-11

1Q

2Q 3Q 4Q
FY2021-7
1Q 2Q 3Q 4Q
FY2022

ChangesIn the electricity retailing business, sales for low-voltage
power for both individual use and corporate use werehigher than the year-ago level, attributable to anincrease in the number of new contracts. However,sales of high-voltage power decreased year on year
due to the implementation of profitability-focused sales.
As a result, overall sales decreased year on year. Sales
volume in the heat provision business increased year
on year due to an increase in the use of air conditioners
that resulted from the higher average temperature incomparison with the year-ago level.
In terms of profitability, profit decreased, reflecting
narrower electricity retail margins due to higher
procurement prices caused by surging resource prices.

Profit (loss) of majoraffiliates

FY2021/1H
Results

FY2022/1H
Results

Changes

ENEX Electric Power Group

4

4

-0

ENEX LIFE SERVICE

1

1

-0

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

8

6

-2

Oji-Itochu Enex power retailingCo., Ltd.
(The Company’s equity 60.0%)

4

2

-1

Sales volumes

Achievementrate

FY2022 Plan

FY2021/1H
Results

37

9%

FY2022/1H
Results

Changes

1,195

1,060

-11%

Sales of highvoltages*

886

688

-22%

Sales of low
voltages*

309

372

+20%

Steam (thousand tons)

249

210

-16%

Heat quantity (TJ)

703

756

+8%

Electricity Retail (GWh)*

Breakdown* Calculated based on preliminary values. Electricity retail includes agency quantity.
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18

2. Progress on Medium-Term Business Plan

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19

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

Basic Policy
Maintaining andexpandingbases
Quantitative Plan
Target Consolidated Results

FY2021

FY2022

Net profit¥12.5 billion¥13.0 billion

ROE

9.0% or more

9.0% or more

Deepening theenvironment& energy
businesses

Management Indicators (FY2021-FY2022)

Consolidated dividend
payout ratio

40% or more

Substantive operating CF¥30.0 billion each fiscal period

Investment (2-year total)¥60.0 billion

Cultivatingnext-generation

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

SHIFT! 2022 Investment Plan
Investment strategy

SHIFT! 2022
(total planned investment over two years)

2021 Results

2022 Plan

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

¥30.0 billion¥9.3 billion¥20.0 billion

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

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

Total investment¥20.0 billion¥60.0 billion

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23

Qualitative Plan/Progress Status: Foundations
Expansion of the trading areaby acquiring LP gas business operators

Entry into the auto auction business* We expanded the business foundations through theimplementation of M&A deals with LP gas business operatorsand stepped-up sales activities.

* We completed a partial acquisition of shares of the GLIONGroup to expand the Group's vehicle distribution value chain.
(Entry into the auto auction business)* The number of households using the Group's LP gas
increased 7,000 from the end of the previous fiscal year, to563,000.

* We will expand the vehicle types that we handle to include
those for construction machinery, while also enhancing
peripheral services for sellers and bidders.

Application of solar power generation
for self-consumption* We facilitated the introduction of self-consumption solar power
generation service. (Installed solar power generation systems
in factories, warehouses and other facilities, achieving
reductions in CO2 emissions and costs at companies that
introduced the systems.)* To date, the system has been installed at 11 facilities in total
including CS operated by Enexfleet Co., Ltd. and Senko Group
companies in Thailand, as well as home centers, asphalt
mixture factories, transportation companies' sales offices, etc.
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Qualitative Plan/Progress Status: Environment and Energy
Introduction ofrenewable diesel for abroader range of applications* A future generation renewable fuel thatminimizes introduction costs and contributes
to GHG emission reductions.
Renewable diesel was introduced for use intankers, buses, special loading businesses(large trucks for trunk transportation between
bases), tugboats, etc. for the first time inJapan.

Start of collaboration with
Smart Solar Corporation* We concluded a basic agreement in which wewill be given preference in the study andownership of commercial-use solar power
plants to be developed by Smart Solar in the
future.
* Smart Solar will not apply the Feed-in Tariff(FIT) scheme to 19 plants it is planning todevelop nationwide, and the total power
generation capacity of the plants is expected
to be approximately 400 MW.

Plan for the opening of aJapan's first hydrogen refuelingstation able to serve FC trucks

Start of the CO2-basedsoybean cultivation
research project* We launched the CO2-based soybean
cultivation research project in cooperation with
Saga City, Saga University and FUJI OILHOLDINGS INC.
* We will seek to realize carbon recycling andreduce CO2 emissions through the effective
disposition of CO2.

* We participated in a project in which hydrogen
refueling stations will be constructed by Air
Liquide Japan G.K.
* Japan's first hydrogen refueling station able toserve FC trucks, as well as vehicles forcommercial use such as buses and trucks, andopen 24 hours a day, 365 days a year.

* A demonstration test, which takes advantage of * Schedule to open in the first half of 2024.
the characteristics of soybeans, namely thatthey grow faster with the absorption of CO2, will
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be carried out at Saga University.
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23

Qualitative Plan/Progress Status: Human Resources
Continuation of the provision ofcross-functional training* We launched a cross-functional team (which was enhanced infiscal 2021) comprising members across the Group to ensurethat chemical reactions occur in a boundaryless fashion
irrespective of departments they belong to or product theyhandle.
* More than 300 staff members participated in the companywide
cross-functional training program. Through such training, we
continued to implement the exchange of human resources.

Overseas on-the-job training

Diversity* We have dispatched 16 employees in total so far to Singapore,
Thailand, the UAE (Dubai), the UK, etc.

* As part of efforts to develop young employees, we will continue
to offer the Young Talent Appointment System.

* We held an online interim reporting session for members
dispatched under the second overseas assignment program(report on initiatives implemented and future issues).

* We set out a target female manager ratio of 30% by 2035.
In addition, we started to promote employees with regional
positions to management positions.

* Preparations are underway for dispatch under the third
overseas assignment program.

* We promoted diversity through the addition of LGBT-related
content to level-specific training and holding of diversityfocused meetings, among other initiatives.
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3. By segment/Progress in FY2022/1Hand Policy for FY2022/2H

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▋Home-Life
Changes in quarterly net profits

Management policy for the second half

50
40
30

20
10
0

28

26

2H Results

22
1H Results

1H Results

6

8

FY2021 Results

FY2022 Plan

Main initiatives in the first half

1. Expanding and streamlining foundations◇ Number of LPG retail customers: 563,000 households (up 7,000 households
from the end of the previous fiscal year) Established a base of approximately 4,000 retail customers in the Kanto area.
2. Digitalizing foundations◇ Accelerated the implementation of the IO center (integrated operation center) andthe CRM system (customer relationship management system) and conducted
test operation in 5 areas nationwide.
◇ Deployed 500 IDs in the SFA (sales force automation system) and digitalized
information on customer contact points and sales trends.
◇ Installed LPWA* at 388,000 households (installation ratio: 69%) and establishedan efficient management system.
3. Establishing group-based HRM (human resources management)◇ Digitalized information on individual skills and prepared/implemented educational
programs according to the level of human resource requirements.

Value of business bases~Changing our business bases into new value~
1. Expanding and streamlining foundations◇ Expand retailing bases.
 Secure approximately 4,000 retailing bases in the Chugoku area.
◇ Review operation bases to take advantage of the acquisition of gold safety
recognition.
2. Digitalizing foundations◇ Implement the IO center and SFA. Facilitate full-scale operation and expansion
in 4 areas.
◇ Aim to install LPWA at 441,000 households (installation ratio of 75%).
◇ Digitalize customer points of contact/establishment of an official LINE account.

3. Establishing group-based HRM◇ Operate and enhance the learning management system.
4. Regional revitalization businesses◇ Develop new services and new businesses to utilize our bases under theconcept of solving regional social issues.
* LPWA: Lower power wireless communication technology and the automation of
LPG gas meter reading and the process of starting and ending services

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26

▋Car-Life
Changes in quarterly net profits

50
40
30
20
10
0

42

40

Management policy for the second half

Creating CS with an eye on the future~Taking on challenges to respond to changes ~2H Results

24
1H Results
1H Results

24

16
FY2021 Results

FY2022 Plan

Main initiatives in the first half

 Maintaining and expanding the customer base
◇ Strengthen store operation to create CS that customers are willing to visit.
◇ Utilize IT and digital technologies to increase operational efficiency■ Maintaining and expanding the customer base
◇ New CS added to the affiliated network: 2 facilities Total number of CS in the affiliatednetwork: 1,630 facilities◇ TERASEL Denki: 5,268 users ◇ Sales of electricity to companies: 61,840 kW

 Expanding auto ancillary businesses◇ Strengthen the auction business by leveraging the group network.
◇ Strengthen the car dealer business.
◇ Expand the business of truck purchasing mainly through Enex Fleet■ Improving productivity through business efficiency improvement◇ Held online kick-off meetings in 7 areas nationwide with the participation of 768 CS
facilities from 254 companies.
◇ Facilitated the streamlining of sales administrative operations with the active use of
information and digital technologies (such as online orders and invoices)■ Preparations for the future◇ Search for new business opportunities by utilizing test stores.
◇ Facilitate entry into new business areas on the auto ancillary business.
◇ Cultivate overseas business (Enex Fleet Vietnam and IP&E Palau)■ Investing proactively in auto ancillary businesses◇ Invested in International Auto Auction Co., Ltd. (40% equity owned by the ENEX Group)◇ Increased the number of new facilities of ENEXFLEET's car purchase shops.
■ Promoting the use of alternative fuels instead of oil and further increasing such
efforts◇ Delivered renewable diesel for power generators installed (for race car trailers and pit
illumination) in Super Formula and F1 races.

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27

▋Industrial BusinessChanges in quarterly net profits
Management policy for the second half

50
40
30

33
2H Results

20

18

10

1H Results0

Responding to demand for decarbonization andpassing along solution to the next generation
1H Results

33

15
FY2021 Results

28

FY2022 Plan

Main initiatives in the first half
■ Expanding products and services that reduce the environmental impact◇ Expanded the renewable energy business- Our proposal was adopted for the verification of measures for reducing CO2 emissions in
Osaka, Kansai, Japan Expo-related construction work, transportation services, etc.
(Adopted for the Carbon Neutral Technology Development and Verification Project ofOsaka Prefecture)- Commenced verification for large vehicle-based transportation on trunk lines between the
Kanto area and the Chubu area.
- Achieved a Japan first with the supply of renewable fuels for single-fuel combustion inships.
◇ Expanded the service of supporting the visualization of CO2 in earnest- Concluded an agreement with Bank of Yokohama for a service of supporting thevisualization of CO2 and started to expand the business in earnest.
◇ Created a dedicated department for the recycling business and strengthened it intensively- Commenced the recycling of used plastics in cooperation with Tokushima Co-op■ Full-scale cultivation of environment-related business and pursuit ofbusiness opportunities◇ Structure for supplying AdBlue ® expanded◇ Organize the supply system of renewable energy fuels and increase sales
thereof◇ Promote the business of LNG bunkering for vessels◇ Create a business dedicated to CO2 reductions by building on the service of
supporting the visualization of CO2■ Increasing the competitiveness and profitability of existing businesses◇ Digitize the distribution and supply systems◇ Expand business areas by leveraging expertise and knowledge◇ Strengthen businesses related to the inspection of industrial gas containers■ Developing and creating new businesses◇ Accelerate efforts in new business development in the environmental businessarea◇ Facilitate business collaboration proactively through alliances with companies
operating in different industries* The industrial gas business was transferred from the Home-Life Division to the Industrial
Business Division in the second half of FY2022.
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28

▋Power & Utility
Changes in quarterly net profits
Management policy for the second half

50
40

35

30

2H Results

20
10
0

37
Power to Connect Customers,
Environmental Business for the Future18
1H Results

17

1H Results

3

FY2021 Results

FY2022 Plan

Main initiatives in the first half
■ Introduced a profitability-focused sales system and an original fuel expense
adjustment scheme.

Power to connect customers~Serve 500,000 households by human and digital sales activities~
 Leverage the customer bases built by respective divisions
to offer the Denki service.
 Enhance the management system to deal appropriately
with risks related to electricity trading
 Utilize DX to increase the number of TERASEL Denki users■ Implemented a demonstration test of the TERASEL CAR SHARE community EV
car sharing service.

Environmental business for the future~Realizing decarbonization and offering economic
advantages simultaneously~■ Installed 11 self-consumption PV facilities in Japan and Thailand.

 Facilitate development with a focus on small- to
medium-sized PV panels and storage batteries.

■ Commenced the operation of a solar power-based agricultural business.
■ Commenced the CO2-based soybean cultivation research project in cooperation
with Saga City, Saga Prefecture, Saga University and FUJI OIL HOLDINGS INC.

 Strengthen initiatives for the development of selfconsumption renewable energy in Japan and overseas.
 Strengthen initiatives for solar sharing, or a solar power-based
agricultural business.
 Start TERASEL CAR SHARE Service
 Implement a black pellet co-firing test at a coal-fired power plant.

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29

Appendix

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30

Appendix[Reference] Shipments of gasoline and diesel oil in Japan (national statistics)
Year ago value

Most recent 1 year (Oct. 2021 - Sep. 2022)

Weekly shipment volume of gasoline

Unit: Thousand kiloliters

1100
1011

1000
900

911

800

830

792

821

800
700

887

858

838

839
786

780

744

864

853
781

759

774

819

752

757

822
762

755

772

758

786

701

854

841

942

813

838

797

785

675

720

600
500

800

758

826

797

918

859

837

725

737

746

572
First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week ofOctober
OctoberNovemberNovember
December
DecemberJanuary
January
February
February
March
March
April
April
May
May
June
June
July
July
AugustAugustSeptember
September

Weekly shipment volume of diesel oil

Unit: Thousand kiloliters

900
800
700

637

600
500
400
300

598

681
597
589

596
594

617
615

648

610

632
631

442

676

419

700
661

647

603

638
555

680
622

662

753

721

665
606

594

595

612

631

649

572
543

607
495

321

546

572

460

619

605
555

513
447

317

First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week of First week of Third week ofOctober
OctoberNovemberNovember
December
DecemberJanuary
January
February
February
March
March
April
April
May
May
June
June
July
July
AugustAugustSeptember
September* Created based on statistics from Petroleum Association of Japan
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31

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

September

OctoberNovember

DecemberJanuary

February

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

ChangesForhouseholdandbusiness
use

401

442

+10%

526

509

-3%

616

618

+0%

828

849

+3%

813

835

+3%

736

800

+9%

For cars

35

29

-17%

36

33

-8%

33

31

-6%

37

37

-0%

29

30

+3%

27

26

-4%

Total

436

471

+8%

562

542

-4%

649

649

+0%

865

886

+2%

842

865

+3%

763

826

+8%

March

April

May

June

July

AugustTotal
Year
Changes before
last

Last
one
year

Changes

-1%

7,179

7,358

+2%

32

+2%

378

375

-1%

434

-0%

7,557

7,733

+2%

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

For
householdandbusiness
use

764

806

+5%

616

621

+1%

522

529

+1%

494

499

+1%

458

448

-2%

405

402

For cars

31

31

-0%

30

31

+3%

26

30

+15%

30

32

+5%

33

34

+2%

31

Total

795

837

+5%

646

652

+1%

548

559

+2%

524

530

+1%

491

482

-2%

436

* Created based on statistics from Japan LP Gas Association
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32

Appendix[Reference] Monthly sales of new cars (Standard-sized cars, compact cars and kei (light) cars)(October to September, national statistics)
OctoberNovember

December

Unit: Thousand units

January

February

March

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

ChangesStandardsized andcompact
cars

221

151

-32%

219

189

-14%

211

191

-9%

208

182

-9%

227

185

-19%

329

285

-14%

Kei cars

118

80

-33%

118

103

-13%

105

89

-15%

116

91

-22%

135

105

-22%

181

142

-22%

Total

340

230

-32%

337

292

-13%

315

280

-11%

325

272

-16%

362

290

-20%

510

426

-16%

April

May

June

July

AugustSeptember

Total

Year
Changes before
last

Last
one
year

Changes

+25%

2,520

2,194

-13%

113

+30%

1,345

1,168

-13%

325

+26%

3,865

3,362

-13%

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

Changes

2020

2021

Standardsized andcompact
cars

183

154

-16%

166

136

-18%

198

170

-14%

213

187

-12%

176

154

-12%

170

212

Kei cars

106

91

-15%

96

75

-21%

99

98

-0%

97

101

+5%

88

80

-9%

87

Total

288

244

-15%

262

212

-19%

297

268

-10%

309

288

-7%

264

234

-11%

257

* Compiled based on statistical data issued by the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association
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33

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

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22