This document is an English translation of financial results report released on April 30, 2021 and written initially in Japanese.
The Japanese original should be considered as the primary version.

April 30, 2021

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
<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, Executive Officer, Assistant to Chief Financial Officer and 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 16, 2021
June 17, 2021
June 16, 2021
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, 2021
(from April 1, 2020 to March 31, 2021)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Profit fromoperatingactivities

Revenue

Fiscal year ended
March 31, 2021
March 31, 2020

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%739,067(17.6)

19,346

0.5

20,0390.3

14,364

1.3

12,1680.9

15,185

7.7

897,427(10.9)

19,257

7.9

19,9782.9

14,185

3.8

12,056

4.3

14,096

7.2

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, 2021
107.79–9.2
March 31, 2020
106.81–
9.6
Reference: Share of profit (loss) of investments accounted for using equity method¥1,726 million
For the fiscal year ended March 31, 2021:¥1,768 million
For the fiscal year ended March 31, 2020:

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

%

%

5.0
5.2

2.6
2.1

(2) Consolidated financial position
Total assets
As ofMarch 31, 2021
March 31, 2020

Ratio ofshareholders’equity to total
assetsTotal shareholders’equityTotal equity

Millions of yen

Millions of yen

Millions of yen

408,327
387,657

161,399
151,884

136,233
128,333

Shareholders’equity per share
%

Yen

33.4
33.1

1,206.88
1,136.89(3) Consolidated cash flows
Net cash flows from(used in) operating
activities
Fiscal year ended
March 31, 2021
March 31, 2020

Net cash flows from(used in) investing
activities

Millions of yen

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(125)(1,411)(24,528)(26,196)

34,841
19,24340,214
28,106

2. Cash dividends
Annual cash dividends per shareFirst
quarterend
Fiscal year ended
March 31, 2020
March 31, 2021
Fiscal year ending
March 31, 2022
(Forecast)

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

Total cash
dividends(Total)Secondquarterend

Third
quarterend

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

21.00
22.00

–
–

23.00
28.00

44.00
50.00

4,971
5,649

41.2
46.4

4.0
4.3

–

23.00

–

23.00

46.00

Fiscalyear-end

Total

41.5

Note: Breakdown of year-end dividend for the fiscal year ended March 31, 2021: Ordinary dividend of ¥22.00, andanniversary commemorative dividend of ¥6.00

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2022
(from April 1, 2021 to March 31, 2022)

Profit from operating
activities

Revenue

Millions of yen

Six months ending
September 30, 2021
Fiscal year ending
March 31, 2022

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

%

Yen

–

–

–

–

–

–

–

–

–

800,000

8.2

20,5006.0

21,2005.8

12,5002.7

110.74

Note: The Company’s performance is evaluated on a fiscal year basis. Accordingly, consolidated earnings forecasts for the
first six months of fiscal year are not prepared.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimatesa. Changes in accounting policies required by IFRSs:
b. Changes in accounting policies other than the above:c. Changes in accounting estimates:

None
None
None

(3) Number of issued shares (common stock)a. Total number of issued shares at end of period (including treasury stock)
As of March 31, 2021

116,881,106 shares

As of March 31, 2020

116,881,106 sharesb. Number of treasury stock at end of period
As of March 31, 2021

4,000,323 shares

As of March 31, 2020

4,000,584 sharesc. Average number of outstanding shares during period
Fiscal year ended March 31, 2021

112,880,739 sharesFiscal year ended March 31, 2020

112,879,973 shares* Note on financial results
Total trading transactions decreased year on year due to the impact resulting from declining sales prices
linked to a fall in crude oil prices and the decrease in sales volumes of domestic petroleum products.
* 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, 2021” 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, 2021 .................................... 2(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2021 .................................... 7(3) Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2021 andEnding March 31, 2022 ........................................................................................................................ 9
2. Basic Concepts Underlying Selection of Accounting Standards ........................................................... 10
3. Consolidated Financial Statements and Significant Notes Thereto ...................................................... 11(1) Consolidated Statement of Financial Position.................................................................................. 11(2) Consolidated Statement of Comprehensive Income ........................................................................ 13(3) Consolidated Statement of Changes in Equity ................................................................................. 15(4) Consolidated Statement of Cash Flows............................................................................................. 16(5) Notes to Consolidated Financial Statements .................................................................................... 18
Notes on Uncertainties of Entity’s Ability to Continue as Going Concern .................................... 18
Segment Information .......................................................................................................................... 18
Earnings per Share ............................................................................................................................. 21
Significant Events after the Reporting Period ................................................................................. 21

-1-

1.

Overview of Operating Results and Others(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2021
1)

Results of operations
During the fiscal year ended March 31, 2021, the environment in the Japanese economy remained
extremely difficult, with a sharp drop in consumer spending due to voluntary stay-at-home directives,
as well as requests by local authorities to refrain from business activities, following two declarationsof states of emergency to prevent the spread of the novel coronavirus disease (COVID-19), resulting
in a significant slowdown in economic activity. As of 2021, the future outlook remains extremely
uncertain.
The Group has established the “emergency headquarters for tackling the coronavirus pandemic,”headed by the President, to carry out appropriate company-wide management by deciding on andexecuting company-wide policies and necessary measures, and by continuously collecting andspreading information internally and externally. In addition, with “employee safety” and “infection
prevention” as the Company’s top priorities, we are working to reduce the risk of infection throughtelecommuting, working at staggered hours and thorough disinfection of business sites, as well as toincrease operational efficiency by improving the communication network environment necessary forthe execution of business.
In terms of business, we promoted our business in accordance with our two-year medium-termbusiness plan “Moving 2020 Horizons” announced in April 2019.
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:(1) Net profit attributable to Itochu Enex’s shareholders: ¥11.0 billion(2) Dividend payout ratio: 40% or above(3) Real operating cash flow*2: ¥20.0 billion or above(4) Planned investment (2-year total): ¥43.0 billion*1

The aforementioned quantitative plan has been reviewed on May 15, 2020 to take into account the impact of
COVID-19.

*2

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

-2-

The operating results for the fiscal year ended March 31, 2021 are as follows.
(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Revenue

897,427

739,067(158,360)

Profit from operating activities

19,257

19,34689

Net profit attributable to Itochu Enex’s shareholders

12,056

12,168112

ChangeRevenue was ¥739,067 million (down 17.6% year on year). This was mainly due to the impact
resulting from declining sales prices linked to a fall in crude oil prices and the decrease in sales
volumes of domestic petroleum products.
Profit from operating activities was ¥19,346 million (up 0.5% year on year), and net profit attributable
to Itochu Enex’s shareholders was ¥12,168 million (up 0.9% year on year). This was mainly due tosolid sales volumes of LP gas for households due to demand from staying at home despite thedecrease in sales volumes in all segments as an impact of COVID-19, operations in response tofluctuations in crude oil price in the import/export business of petroleum products, as well as due toreduction of operating expenses, etc. Net profit attributable to Itochu Enex’s shareholders constituted
a new record-high profit for a sixth 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, 2020, the reportable segments have changed. As a result of the reorganization of theGroup, the import/export business of petroleum products and the terminal tank rental business whichwere part of the “Car-Life Division” have been reclassified as the “Industrial Business Division.”
For that reason, the year-on-year comparisons have been recalculated based on the reportablesegments as they exist after the reorganization.
Home-Life Division(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Revenue

89,08478,962(10,122)

Profit from operating activities

2,799

1,553

(1,246)

Net profit attributable to Itochu Enex’s shareholders

2,113

1,726

(387)

ChangeIn the Home-Life Division during the fiscal year ended March 31, 2021, although there was an impact
from factors including the restraint on business activities caused by COVID-19, the number ofcustomers under direct LP gas supply contracts was approximately 552,000 (up 1,000 from the end of
the previous fiscal year) as a result of promoting activities aimed at expanding the customer base andpurchasing business rights. Sales volumes of LP gas decreased year on year overall as demand for gas
for commercial and industrial decreased despite being on a recovery trend, while demand forhouseholds increased as a result of demand from staying at home caused by voluntary stay-at-homedirectives.
Regarding sales of electricity for households, the division promoted the expansion of the customer baseby focusing mainly on selling LP gas as a set. As a result, the number of supply contracts was a total of
approximately 109,000.
Regarding the industrial gas business, sales volumes declined year on year due to a decrease in sales ofcarbonic acid gas for use in beverages, primarily for restaurants, and dry ice for food transportation, as
well as the impact of reduced utilization rates of the customer plants to which we are supplying.

-3-As a result of these activities, the operating results for the fiscal year ended March 31, 2021 are as
follows.
Revenue was ¥78,962 million (down 11.4% year on year). This was due mainly to the decrease in thesales volume of LP gas and industrial gas due to sluggish economic activity.
Profit from operating activities was ¥1,553 million (down 44.5% year on year). Net profit attributable
to Itochu Enex’s shareholders was ¥1,726 million (down 18.3% year on year). This was due mainly tothe steep rise in the market price of electricity and the decrease in the sales volume of other LP gas andindustrial gas, despite securing a certain amount of revenue due to the increase in demand for LP gas
for households.
Car-Life Division(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

506,669

414,641(92,028)

Profit from operating activities

7,477

7,604

127

Net profit attributable to Itochu Enex’s shareholders

4,082

4,054

(28)

Revenue

ChangeLooking at the Car-Life Division during the fiscal year ended March 31, 2021, in the Car-Life Stations(CS)*3 business, the number of the CS was 1,687, a decrease of 17 from the end of the previous fiscal
year. Sales volumes of petroleum products decreased year on year due to a decrease in sales volumes ofgasoline and diesel oil as a result of voluntary stay-at-home directives due to the impact of COVID-19
and weak economic activity.
In the automotive business, our car dealer business subsidiary OSAKA CAR LIFE GROUP CO., LTD.
experienced year-on-year decline in sales volume in the first half in reaction to a decrease in thenumber of customers due to shortened store business hours caused by COVID-19. The annual numberof vehicles sold returned to the level in a typical year due to the contribution from sales of new vehicles
in the second half.
As a result of these activities, the operating results for the fiscal year ended March 31, 2021 are as
follows.
Revenue was ¥414,641 million (down 18.2% year on year). This was mainly due to the impact
resulting from declining sales prices linked to a fall in crude oil prices and the decrease in sales
volumes of domestic petroleum products.
Profit from operating activities was ¥7,604 million (up 1.7% year on year). This was mainly due to anincrease of revenue in the automotive business. Net profit attributable to Itochu Enex’s shareholders
was ¥4,054 million (down 0.7% year on year).
*3

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

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

Fiscal year ended
March 31, 2021

210,459

160,778(49,681)

Profit from operating activities

3,638

5,010

1,372

Net profit attributable to Itochu Enex’s shareholders

2,541

3,857

1,316

Revenue-4-

ChangeLooking at the Industrial Business Division during the fiscal year ended March 31, 2021, in theindustrial fuel sales business, sales volumes decreased year on year because utilization rates of thecustomer plants to which we are supplying reduced due to the impact of COVID-19. In addition, in theasphalt business, sales volume also decreased year on year due to changes in the procurement
environment and decline in utilization rates of refineries. In the marine fuel sales business, sales
volumes rose year on year due to steady sales for ocean-going vessels. In the petroleum products
import/export business, revenue increased year on year due to successful operations in response tofluctuations in crude oil price.
As a result of these activities, the operating results for the fiscal year ended March 31, 2021 are as
follows.
Revenue was ¥160,778 million (down 23.6% year on year). This was due mainly to declining sales
prices of industrial petroleum products caused by a fall in the crude oil prices and the decrease in sales
volumes.
Profit from operating activities was ¥5,010 million (up 37.7% year on year). Net profit attributable to
Itochu Enex’s shareholders was ¥3,857 million (up 51.8% year on year). This was mainly due tooperations in response to fluctuations in crude oil price in the import/export business of petroleum
products and due to reduction of operating expenses.
Power & Utility Division(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Revenue

91,21584,686(6,529)Profit from operating activities

5,758

5,220

(538)

Net profit attributable to Itochu Enex’s shareholders

3,475

2,669

(806)

ChangeIn the electric power business of the Power & Utility Business, during the fiscal year ended March 31,
2021, high-voltage power sales volumes decreased year on year due to reduction in utilization rates of
the customer stores, plants, etc. to which we are supplying electric power caused by the impact of
COVID-19, as well as a decrease in high-voltage power contracts for business users.
On the other hand, although low-voltage sales volumes increased due to an increase in household
electric power consumption as a result of improved rates of working from home and there was anincrease in the number of low-voltage power contracts, particularly for households, retail electricity
sales volumes decreased year on year overall.
The heat supply business*4 commenced business in the Kitanakadoriminami area of Yokohama fromFebruary 2020, but demand for heat slightly decreased year on year due to the impact of suspension ofbusiness activities of tenants to which we are supplying heat and working from home, caused by the
impact of COVID-19.
As a result of these activities, the operating results for the fiscal year ended March 31, 2021 are as
follows.
Revenue was ¥84,686 million (down 7.2% year on year). This decrease was due mainly to a decrease insales volumes caused by the shift to agency arrangements for the sales and supply/demand managementin the electric power business.
Profit from operating activities was ¥5,220 million (down 9.3% year on year). Net profit attributable to
Itochu Enex’s shareholders was ¥2,669 million (down 23.2% year on year). This was mainly due to adecrease in profit associated with the electric power business development project.
*4

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, 2022
In the forecast of consolidated financial results for the fiscal year ending March 31, 2022, we project¥800,000 million in revenue, up 8.2% year on year, ¥20,500 million in profit from operating
activities, up 6.0% year on year, ¥21,200 million in profit before tax, up 5.8% year on year, and¥12,500 million in net profit attributable to Itochu Enex’s shareholders, up 2.7% year on year.
Basic earnings per share attributable to Itochu Enex’s shareholders are projected at ¥110.74.

-6-(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2021
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, 2021

ChangeTotal assets

387,657

408,327

20,670Total liabilities

235,773

246,928

11,155

Total equity

151,884

161,399

9,515

Total assets amounted to ¥408,327 million as of March 31, 2021, an increase of ¥20,670 million fromMarch 31, 2020. This was mainly due to an increase in cash and cash equivalents of ¥15,598 million
resulting from a decrease in working capital and others. Total liabilities amounted to ¥246,928 million, an
increase of ¥11,155 million from March 31, 2020. This was mainly due to an increase in trade payables of¥18,832 million due to an increase in purchase prices resulting from a rise in the crude oil prices. Total
equity totaled ¥161,399 million, an increase of ¥9,515 million from March 31, 2020, due to factors
including an increase of ¥12,168 million from net profit attributable to Itochu Enex’s shareholders and adecrease of ¥5,759 million by payment of cash dividends.
We consequently ended the fiscal year with a ratio of shareholders’ equity to total assets of 33.4%.
Cash flows
The Group is carefully selecting investments, giving consideration to COVID-19, and focusing on capital
investment for the current fiscal year.
The spread of COVID-19 does not substantially affect cash flow for the current fiscal year. With respect tofinancing capacity for the time being, we have sufficiently secured account overdraft facilities andcommercial paper issuance facilities, in addition to maintaining ample cash and cash equivalents.
Moreover, we are essentially free of debt amid a situation where we have maintained healthy levels ofdebt thus far, which is currently reflected by our net debt-equity ratio (net DER) of negative 0.13 times.
(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Cash flows from operating activities

28,106

40,214

12,108Cash flows from investing activities(1,411)

(125)

1,286

[Free cash flows](26,695)(40,089)(13,394)

Cash flows from financing activities(26,196)(24,528)

1,668

Net increase in cash and cash equivalents

499

15,561

15,062

Effect of exchange rate changes on cash and cash
equivalents

19

37

18

19,243

34,841

15,598Cash and cash equivalents at the end of theperiodChangeCash and cash equivalents (net cash) totaled ¥34,841 million as of March 31, 2021, up ¥15,598 million
from March 31, 2020.

-7-

Cash flows from operating activities(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Cash flows from operating activities

28,106

40,214

12,108Changes in working capital and others(8,399)7,359

15,758

Real operating cash flow*

36,50532,855(3,650)Change*Real operating cash flow excludes working capital, etc. from cash flows from operating activities.

Operating activities provided net cash of ¥40,214 million. Major items included profit before tax of¥20,039 million, depreciation and amortization of ¥19,930 million, and a decrease in funds required for
trading of ¥1,216 million. Net cash provided increased ¥12,108 million year on year. Moreover, real
operating cash flow decreased ¥3,650 million year on year due to special factors.
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 2019 to 2020, we have proceeded with investments in maintaining anddeepening our important revenue base that generates cash flow, as well as 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 ¥125 million in funds used forinvesting activities. Cash used included purchase of investments (including investments accounted for by
the equity method) of ¥5,375 million, mainly in the Power & Utility Division, payments for purchase ofproperty, plant and equipment and investment property of ¥11,646 million, and purchase of intangible
assets of ¥1,618 million. Meanwhile, cash provided included proceeds from sales and redemption of
investments (including investments accounted for by the equity method) of ¥5,521 million, collection ofloans receivable of ¥1,180 million, and decrease in deposits paid of ¥11,021 million. Net cash useddecreased ¥1,286 million year on year.
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¥24,528 million in funds used for financing activities. This was mainly due to proceeds from short-termbonds (commercial papers) and borrowings of ¥11,050 million for responding to COVID-19, redemptionof short-term bonds (commercial papers) and repayments of borrowings of ¥18,941 million, andrepayments of lease liabilities of ¥11,106 million. Net cash used decreased ¥1,668 million year on year.
*The Group Financial System streamlines fund management and procurement costs by sharing funds within the Group.

-8-

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)

2019
32.7

2020
33.1

2021
33.4

26.9

24.6

30.2

1.3
30.3

0.9
25.0

0.4
37.6

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 Statementof 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, 2021 and Ending
March 31, 2022
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, 2021, we plan to pay a year-end dividend of ¥22 per share and a 60th
anniversary commemorative dividend of ¥6 per share. For the fiscal year ending March 31, 2022, we plan
to pay annual dividends of ¥46 per share (including an interim dividend of ¥23 per share).
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.

-9-

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 offinancial information in capital markets.

- 10 -

3.

Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Statement of Financial Position
As ofMarch 31, 2020
ASSETS
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- 11 -(Millions of yen)
As ofMarch 31, 2021

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

34,841
99,764
17,90025,495
3,055
100
2,710

161,240

183,865

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

29,437
4,246
10,330136,291
12,797521
19,6889,728
1,424

226,417

224,462

387,657

408,327

As ofMarch 31, 2020
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, 2021

7,024
83,936
9,591
6,216
4,172
9,437
12,848

3,041
102,768
10,2855,614
3,874
11,006
14,353

133,224

150,941

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

14,41850,49914,425
9,925
1,001
5,465
254

Total non-current liabilities

102,549

95,987

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

235,773

246,928

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

19,87818,934
92,761(1,370)(1,870)19,87818,974
99,829(576)(1,871)

Total shareholders’ equity

128,333

136,233

23,551

25,165

151,884

161,399

387,657

408,327

Non-controlling interests
Total equity
Total liabilities and equity- 12 -

(2) Consolidated Statement of Comprehensive Income
Fiscal year ended
March 31, 2020

(Millions of yen)
Fiscal year ended
March 31, 2021

Revenue
Cost of sales

897,427(811,009)

739,067(652,178)

Gross profit

86,41886,889Other income and expense
Selling, general and administrative expenses
Loss from tangible assets, intangible assets and goodwill
Other – net(68,858)
(428)
2,125

(67,115)(1,369)941(67,161)(67,543)

Profit from operating activities

Total other income and expense

19,257

19,346

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

58
103(1,126)
(82)

41
509
(1,070)(513)

Total financial income and costs(1,047)(1,033)

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- 13 -

1,768

1,726

19,97820,039(5,793)(5,675)

14,185

14,364

12,0562,129

12,1682,196

14,185

14,364

Fiscal year ended
March 31, 2020
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, 2021

(215)
(90)

219
26

(41)

77

(7)
82

(65)
147

182

417

(89)

821

Comprehensive income

14,09615,185Comprehensive income attributable to:Comprehensive income attributable to Itochu Enex’s shareholders
Comprehensive income attributable to non-controlling interests

12,033
2,063

12,9452,240

14,09615,185

Total other comprehensive income, net of tax effect

Total

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

106.81–

107.79
–1,104,548(Millions of yen)
922,557

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”).

- 14 -

(3) Consolidated Statement of Changes in Equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders’ equity
Commonstock
Balance at April 1, 201919,878

Capitalsurplus18,922

Cumulative effect ofaccounting change
Restated balance

Noncontrollinginterests

Total equity

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)–20

20

Retainedearnings

Other
components ofequityTreasury
stock

Total
shareholders’equity86,769(1,406)(1,873)(1,146)
19,87818,922

Net profit

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

12,056

Other comprehensive
incomeComprehensive income

12,056

Transactions with owners
Cash dividends(4,859)Changes due to additional
acquisitions and sales ofinterests in subsidiaries
Transfer from othercomponents of equity toretained earnings
Purchase and disposal oftreasury stock

(59)

(0)

Share-based payments
Balance at March 31, 2020

5912
19,87818,934

92,761(1,370)

–

–

(0)

(0)

3

15

(1,870)128,333

15
23,551

151,884

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity
Commonstock
Balance at April 1, 2020

19,878

Capitalsurplus18,934

Net profit

Noncontrollinginterests

Total equity

128,333

23,551

151,884

12,1682,196

14,364

777

777

44

821

777

12,9452,240

15,185(5,084)(675)(5,759)–50

50

Retainedearnings

Other
components ofequityTreasury
stock

Total
shareholders’equity92,761(1,370)(1,870)12,168Other comprehensive
incomeComprehensive income

12,168Transactions with owners
Cash dividends(5,084)

Changes due to additional
acquisitions and sales ofinterests in subsidiaries
Transfer from othercomponents of equity toretained earnings
Purchase and disposal oftreasury stock

(17)

(1)

Share-based payments
Balance at March 31, 2021

1739
19,87818,974

99,829- 15 -

(576)

–

–

(1)

(1)

1

40

(1,871)

136,233

40
25,165

161,399

(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

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 (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other – net
Dividends received
Interest received
Interest expense
Income taxes paid
Income taxes refund

19,97819,580428
1,047(1,768)19,388
8,814(37,741)
1,140
1,613
56
(1,126)(5,836)
2,533

20,03919,9301,369
1,033(1,726)(12,927)(4,807)
18,950
6,143
3,105
41
(1,006)(10,028)98

Net cash flows provided by operating activities

28,106

40,214(2,825)(5,375)

5,201

5,521

(5,566)680
2,905(1,017)
1,316

–
11
–
(875)
1,180

(11,941)(11,646)

2,616

700

(1,980)
22
8,979
199

(1,618)219
11,021737(1,411)(125)

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- 16 -

(Millions of yen)
Fiscal year ended
March 31, 2020
Cash flows from financing activities
Proceeds from bonds and borrowings
Repayments of bonds and borrowings
Repayments of lease liabilities
Net increase (decrease) in short-term borrowings
Payments for additional acquisitions of interests in subsidiaries
from non-controlling interests
Capital contribution from non-controlling interests
Cash dividends paid to Itochu Enex’s shareholders
Cash dividends paid to non-controlling interests
Purchase of treasury stock

Fiscal year ended
March 31, 2021–
(8,381)(10,804)(1,753)

11,050(18,941)(11,106)
179

(30)

–

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

50
(5,084)(675)(1)

Net cash flows used in financing activities(26,196)(24,528)

Net increase in cash and cash equivalents

499

15,561

18,725

19,24319

37

19,243

34,841

Cash and cash equivalents at the beginning of the period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period- 17 -

(5) Notes to Consolidated Financial Statements
Notes on Uncertainties of Entity’s Ability to Continue as Going Concern
No items to report.
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.
The Industrial Business Division engages in sales and services involving gasoline, kerosene, diesel oil,fuel oil, LP gas, high-grade urea solution “AdBlue,” GTL fuel, corporate fleet refueling cards asphalt,
and marine fuel, as well as recycling of fly ash, recovery and recycling of slop, import/ export ofpetroleum products and terminal tank rental.
The Power & Utility Division is engaged in the sale of electricity (wind, hydropower, photovoltaic
power, coal-fired, natural gas-fired) 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.
During the fiscal year ended March 31, 2021, the import/export business of petroleum products and theterminal tank rental business which were part of the “Car-Life Division” have been reclassified as the“Industrial Business Division.”
Furthermore, in conjunction with the absorption-type merger of ENEXAUTO CO., LTD., which was a
subsidiary of the Company, by ENEX LIFE SERVICE Co., Ltd., a subsidiary of the Company, theGroup reviewed the management classification and changed the method to include the business of
ENEXAUTO CO., LTD., which was previously included in the Car-Life Division, in the Power &Utility Division.
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.

- 18 -

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

Car-Life
Division

Industrial
Business
Division

Power &
Utility
Division

Total

Revenue from externalcustomers

89,084

506,669

210,459

91,215

897,427–

897,427

Intersegment revenue

81

13,840

6,305

4,137

24,363(24,363)–

Total revenue

Adjustment

Consolidated

Revenue

89,165

520,509

216,764

95,352

921,790(24,363)

897,427

Gross profit

21,95846,543

8,066

9,851

86,418–86,418Selling, general andadministrative expenses(19,449)(39,192)(4,732)(5,044)(68,417)(441)(68,858)

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

172

(212)

(44)

(340)

(424)

(4)

(428)

Other profit

118

338

348

1,292

2,096

29

2,125

2,799

7,477

3,638

5,758

19,673(416)

19,257

Financial income and costs

(23)

(505)

(7)

(412)

(947)

(100)

(1,047)

Share of profit ofinvestments accounted forby the equity method

825

103

54

786

1,768

–

1,768

Profit before tax

3,601

7,076

3,685

6,132

20,494(516)

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

2,113

4,082

2,541

3,475

12,211(155)

12,056(3,759)(7,877)(1,815)(4,787)(18,238)(1,342)(19,580)

Profit from operating
activities

Other items
Depreciation andamortization

(145)

(204)

–

(144)

(493)

–

(493)

Total assets

67,240148,097

49,277

92,077356,691

30,966387,657

Investments accounted
for by the equity method

19,049511

90

11,93331,583–31,583

Capital expenditures

3,688

3,130

194

6,038

13,050871

13,921

Increase in right-of-use
assets

918

3,803

1,166

4,278

10,16565

10,230Total trading transactions

98,328544,270368,059

93,891

1,104,548–

1,104,548

Impairment loss

(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 -

Fiscal year ended March 31, 2021
(Millions of yen)
Reportable segment
Home-Life
Division

Car-Life
Division

Industrial
Business
Division

Power &
Utility
Division

Total

Revenue from externalcustomers

78,962

414,641

160,778

84,686

739,067–

739,067Intersegment revenue

54

10,910

5,262

4,224

20,450(20,450)–

Total revenue

79,016425,551

166,040

88,910759,517(20,450)

739,067

Gross profit

20,42946,776

9,426

10,25886,889–86,889Selling, general andadministrative expenses(18,750)(39,162)(4,103)(4,985)(67,000)(115)(67,115)

Loss from tangible assets,intangible assets andgoodwill

(157)

(214)

(310)

(668)

(1,349)(20)(1,369)Other profit (loss)

31

204

(3)

615

847

94

941

Profit from operating
activities

1,553

7,604

5,010

5,220

19,387(41)

19,346

Financial income and costs

(14)

(453)

438

(855)

(884)

(149)

(1,033)

Share of profit ofinvestments accounted forby the equity method

1,410

69

66

181

1,726

–

1,726

Profit before tax

2,949

7,220

5,514

4,546

20,229(190)

20,039Net profit attributable to
Itochu Enex’s shareholders

1,726

4,054

3,857

2,669

12,306(138)

12,168(3,887)(7,604)(1,799)(5,089)(18,379)(1,551)(19,930)

(119)

(136)

(295)

(496)

(1,046)–(1,046)

Total assets

72,235150,123

56,28894,979373,625

34,702

408,327

Investments accounted
for by the equity method

20,282

429

194

8,532

29,437–29,437

Capital expenditures

4,309

2,146

431

5,931

12,817447

13,264

Increase in right-of-use
assets

1,350

5,876

1,916

630

9,772

3

9,775

Total trading transactions

87,932458,854

277,541

98,230922,557–

922,557

Adjustment

Consolidated

Revenue

Other items
Depreciation andamortization
Impairment loss

(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of negative ¥138 million to net profit attributable to Itochu Enex’s shareholders represents corporate
profit (loss) not allocated to reportable segments.
The adjustment of ¥34,702 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.

- 20 -

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, 2020 and 2021.
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, 2020 and 2021.
Earnings per Share
Basic earnings per share for the fiscal years ended March 31, 2020 and 2021, were calculated asfollows:
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

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

12,056

12,168Weighted-average number of ordinary shares outstanding(Thousands of shares)

112,880

112,881

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

106.81

107.79(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.

- 21 -