This document is an English translation of quarterly financial results report released on October 30, 2014 and written initiallyin Japanese.
The Japanese original should be considered as the primary version.

October 30, 2014

Consolidated Financial Results for the First Six Months of
the Fiscal Year Ending March 31, 2015
<under IFRSs>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

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

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

November 11, 2014
December 5, 2014
None
None

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

1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2015
(from April 1, 2014 to September 30, 2014)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Total tradingtransactions
Six months ended
September 30, 2014
September 30, 2013

Operating profit Profit before tax

Profitattributable toowners of theparentTotal
comprehensive
incomeMillionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%696,637

0.8

5,972

24.9

5,714

(13.6)

3,425

(8.9)

2,807

(12.8)

3,647

(8.7)

691,153

–

4,783

–

6,616

–

3,760

–

3,220

–

3,996

–

Basic earnings
per share
Six months ended
September 30, 2014
September 30, 2013

ProfitDiluted earnings
per share

Yen

24.84
28.50

Yen

–
–

Note: “Total trading transactions” are presented in accordance with the Japanese accounting practices and represent the total
amounts of transactions that the Company and its consolidated subsidiaries conducted as a party in contracts and forwhich they acted as an agent.
“Operating profit” represents “Profit from operating activities” in the condensed quarterly consolidated statement ofcomprehensive income.
“Basic earnings per share” are calculated based on “Profit attributable to owners of the parent.”

(2) Consolidated financial position
Total assets
As of
September 30, 2014
March 31, 2014

Ratio of equity
attributable to ownersof the parent to total
assetsEquity attributable toowners of the parent

Total equity

Millions of yen

Millions of yen

Millions of yen

341,482
321,032

111,188
103,563

95,816
94,144

%

28.1
29.3

2. Cash dividends
Annual cash dividends per share
Second quarterend

First quarter-end
Yen

Third quarter-end

Yen

Fiscal year ended
March 31, 2014

–

8.00

Fiscal year ending
March 31, 2015

–

11.00

Fiscal year-end

Yen

Fiscal year ending
March 31, 2015
(Forecast)

Total

Yen

Yen

–

12.00

20.00

–

11.00

22.00

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

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2015
(from April 1, 2014 to March 31, 2015)
Total tradingtransactions
Millions of yen

Fiscal year ending
March 31, 2015

1,600,000(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Profit before tax
owners of the parent
per share

Operating profit% Millions of yen

6.2

13,800% Millions of yen

16.2

13,800% Millions of yen(0.3)

Note: Revisions to the consolidated earnings forecasts most recently announced: None

7,600

%

6.7

Yen

67.26

* 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:

Yes
None
None

For details, please refer to “2. Matters Regarding Summary Information (Notes), (2) Changes in Accounting Policies,
Changes in Accounting Estimates, and Restatement of Prior Period Financial Statements” on page 6 of the attachedmaterials.

(3) Number of issued shares (common stock)a. Total number of issued shares at end of period (including treasury stock)
As of September 30, 2014

116,881,106 shares

As of March 31, 2014

116,881,106 sharesb. Number of treasury stock at end of period
As of September 30, 2014

3,890,592 shares

As of March 31, 2014

3,890,015 sharesc. Average number of outstanding shares during period (cumulative from the beginning of the fiscal year)
For the six months ended September 30, 2014

112,990,865 shares

For the six months ended September 30, 2013

112,992,207 shares* Indication regarding execution of quarterly review proceduresThis quarterly financial results report is out of the scope of the quarterly review procedures that are
required by the Financial Instruments and Exchange Act. At the time of disclosure of this quarterly
financial results report, the quarterly review procedures for the condensed quarterly financial statements
pursuant to the Financial Instruments and Exchange Act are in progress.
* Proper use of earnings forecasts, and other special notes
The forecasts and other forward-looking statements in this report are based on information currently
available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual
business and other results may significantly differ from these forecasts due to various factors.
Please refer to “1. Qualitative Information Regarding Results for the First Six Months, (3) Explanation ofConsolidated Earnings Forecasts and Other Forward-Looking Statements” on page 5 of the attachedmaterials for the suppositions that form the assumptions for earnings forecasts and cautions concerning theuse thereof.

Contents of Attached Materials
1. Qualitative Information Regarding Results for the First Six Months ........................................................... 2(1) Explanation of Operating Results ........................................................................................................... 2(2) Explanation of Financial Position ........................................................................................................... 5(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements ................... 5
2. Matters Regarding Summary Information (Notes) ....................................................................................... 6(1) Changes in Significant Subsidiaries During the Period .......................................................................... 6(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Prior Period
Financial Statements ............................................................................................................................... 6
3. Condensed Quarterly Consolidated Financial Statements ............................................................................ 7(1) Condensed Quarterly Consolidated Statement of Financial Position ..................................................... 7(2) Condensed Quarterly Consolidated Statement of Comprehensive Income ............................................ 9(3) Condensed Quarterly Consolidated Statement of Changes in Equity................................................... 11(4) Condensed Quarterly Consolidated Statement of Cash Flows ............................................................. 12(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern........................................... 13(6) Segment Information ............................................................................................................................ 13(7) Business Combinations......................................................................................................................... 15

-1-

1.

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

Results of operations
During the six months ended September 30, 2014, the Japanese economy has been on a moderate
recovery trend thanks to improvement of employment and income underpinned by the effects of thegovernment economic policies and ongoing monetary easing by the Bank of Japan. Meanwhile, in
personal consumption, the impact was seen through the prolonged pullback in demand in the wake of asurge ahead of the consumption tax hike in April 2014.
In the petroleum products distribution industry, although the price of crude oil, which had hovered at ahigh level, began falling in July, domestic petroleum product prices were trending in a high price range
due to the continued weakening of the yen against the dollar. In addition, the sales volume of gasoline
decreased significantly from the corresponding period a year earlier as unseasonable weather continued
during the summer holiday season.
With regard to the power market, spot prices were trending steadily due to the continued shutdown ofnuclear power plant operations. From August, however, demand for electricity declined affected by theunseasonable weather and the subsequent decline of average temperatures, and the spot average price
was below that of the corresponding period a year earlier.
In this operating environment, the Itochu Enex Group has formulated its Fiscal 2014 Group Business
Plan, “Moving 2014,” and pushed ahead with the following six priority measures:< 1 > Transform the petroleum and gas business model< 2 > Create new businesses to obtain new revenue sources< 3 > Further expand existing businesses through M&As
< 4 > Develop business base and network for power and utility business< 5 > Develop and cultivate overseas business< 6 > Upgrade “Enex DNA”
As a part of its efforts in promoting these measures, in September, the Company agreed to form a joint
venture for power retailing with Oji Green Resources Co., Ltd., a subsidiary of Oji Holdings
Corporation. Looking ahead to the full liberalization of the electricity retail market in 2016, we willcontribute significantly to electricity power supply and demand in Japan as a new leader in the industry
through an alliance with Oji Group.
As a result of the above activities, during the six months ended September 30, 2014, revenue increased
6.7% year on year to ¥478,762 million, due to a growth in revenue as a result of the new consolidationof Osaka Car Life Group Co., Ltd., which became a subsidiary of Itochu Enex in May, and an increase
in revenue from the electricity and steam supply business, etc. Through the contribution of the newconsolidation to profits, gross profit increased 16.2% year on year to ¥38,999 million, while profit
before tax decreased 13.6% year on year to ¥5,714 million, despite an increase in gross profit, due to anincrease in expenses resulting from the new consolidation, and also due to the absence of profit fromsales of investments in subsidiaries and associates recorded in the corresponding period a year earlier,and other factors. Profit attributable to owners of the parent decreased 12.8% year on year to ¥2,807
million, owing to the decrease in profit before tax.

2)

Results of operations by segment
Home-Life Division
In the Home-Life Division, while the sales volume of LP gas decreased slightly in the first quarter froma year earlier, in the second quarter it was above that of a corresponding period a year earlier due
mainly to the decline of average temperatures nationwide. Consequently, the sales volume for the six
months ended September 30, 2014 was at the same level as in the corresponding period a year earlier.
In the profit and loss aspect, although a certain level of profit was ensured through the gas rateadjustment system, profits decreased year on year due to compression of profit margins because of a-2-relatively expensive inventory held at the beginning of the fiscal year, and other reasons.
Under such conditions, in addition to the “Smart Life” campaign launched in June aimed at promoting
the sales of photovoltaic power generation systems, ENEFARM residential fuel cells, and highperformance and high-efficiency gas equipment, we launched in July the “All Japan Appliance Sales
Dream Matching Campaign” at our Group sales distributors nationwide. As a company which proposes
an optimal mix of home energy, we will offer Smart Life to customers to realize affluent andcomfortable lifestyles, via nationwide Group companies and distributors.
Moreover, as social contribution activities, the Company has hosted the “Itadakimasu Support
Manifesto for Kids,” a program to teach children the importance of food culture, and the “Honoo no
Chikara Support Manifesto for Kids,” a program to teach children the importance of fire, atkindergarten and nursery schools across Japan. Moreover, we also conduct activities such as “Cooking
Class for Parents and Children” and convey the importance of cooking with parents and children
together, as well as the significance of food and diet.
As a result of these activities, revenue was ¥49,023 million (down 1.1% year on year), gross profit was¥11,775 million (down 4.0% year on year), and profit before tax was ¥903 million (down 46.3% year
on year).

Car-Life Division
In the Car-Life Division, domestic demand continues to decline due to the impact of the consumption
tax hike, the reluctance of consumers to purchase because of the price of petroleum products that ishovering at high levels, the popularization of fuel efficient vehicles, as well as unseasonable weather insummer when gasoline demand is usually high, and as a result the sales volume was down from a year
earlier. In the aspect of profit and loss, meanwhile, despite a severe operating environment due to thedecrease in the sales volume of petroleum products and the compression in the distribution margin,
profit was above the corresponding period a year earlier owing to the contribution from June of Osaka
Car Life Group Co., Ltd., which became a subsidiary in May.
In the retail strategy, we have continued to improve profitability of Car-Life Stations*1 by sharing
successful examples and providing Stations with individual support meeting their needs through“ENEX ACT Program*2,” which has been developed for the purpose of strengthening competitivenessof the Car-Life Stations of the Company.
In the automobile-related business, we are focusing on strengthening the Car Life value chain so that
we will build even closer relationships with customers through the life cycle of vehicles starting fromsales of new cars by the Osaka Car Life Group Co., Ltd., to maintenance and repair services,automobile insurance sales, vehicle inspection, sales of used cars, etc., and create synergies with the CS
business that we have cultivated.
The number of Car-Life Stations of the Itochu Enex Group as of September 30, 2014 was 2,084; a net
decrease of 34 stations from the end of the previous fiscal year. During the six months ended
September 30, 2014, impacted by the trend of decrease in the number of nationwide gas stations, welost 58 stations through disaffiliation of unprofitable and decrepit stations, etc. while adding 24 newly
affiliated stations.
As a result of these activities, revenue was ¥300,282 million (up 13.3% year on year), gross profit was¥20,073 million (up 37.1% year on year), and profit before tax was ¥516 million (up 27.4% year onyear).
*1 Car-Life Stations: Car-Life Stations are service stations providing multiple services provided by Itochu Enex.
*2 ENEX ACT Program: Under this program, we work closely with Car-Life Station operators to raise theircompetitiveness by analyzing their station operations and competitive climate, conducting group training, andengaging in other activities.

-3-Power & Utility Division
In the Power & Utility Division, with the continued suspension of nuclear power plant operations, due
to the impact of unseasonable weather from August, demand for electricity and heat ended up
undershooting the projection.
In the electricity and steam supply business*3, regarding the power generation area centering on JEN
Holdings Co., Ltd., as a result of the start of operations of the wind power generation facilities in Tainai
City of Niigata Prefecture, electricity produced by wind power increased from the corresponding perioda year earlier. However, as for thermal power plants, due to the impact of the decline of the nighttime
power spot market price, etc., electricity production was below the corresponding period a year earlier.
In addition, regarding the electricity sales area centering on the Company, through increasing contracts
in the areas controlled by the respective power companies in Tohoku, Chubu and Kyushu, where we
started business in this fiscal year, strengthening sales activities in the Tokyo, Kansai and Chugoku
areas, and business expansion including new establishment of the Kansai local section, the amount ofelectricity sold in retail business increased from the corresponding period a year earlier, while the total
amount of electricity sold under the division decreased slightly.
Profits grew significantly year on year thanks to expansion of retail sales in the electricity and steam
supply business.
In the heat supply business*4, heat sold decreased due to unseasonable weather from August and theheightened consciousness of energy conservation driven by the increase in fuel costs, and the amount ofheat sold was less than that in the corresponding period a year earlier, while profits were at the samelevel as in the corresponding period a year earlier, due mainly to raw materials cost reductions.
In the LNG sales business, the sales volume increased year on year with an increased sales to new
customers who began transacting in the previous fiscal year.
As a result of these activities, revenue was ¥17,472 million (up 6.8% year on year), gross profit was¥3,518 million (up 5.2% year on year), and profit before tax was ¥2,522 million (down 35.7% year onyear) due partly to the absence of profit from sales of investments in subsidiaries and associates
recorded in the corresponding period a year earlier.
*3 Electricity and steam supply business: Electricity and steam supply business supplies electricity and steam
generated at time of power generation.
*4 Heat supply business: Heat supply business supplies cold and hot water for air conditioning to multiple officebuildings and other buildings from a heat source plant using pipes.

Energy Trade Division
In the Energy Trade Division the impact of the drastic decline of crude oil prices was limited thanks tofurther weakening yen against the dollar. Meanwhile, the Division continued to face a difficult
environment due to continuing stagnation of market conditions partly due to decreasing demand.
Moreover, because of energy conservation efforts and heightened environmental awareness in various
fields, fuel consumption is on a slowing trend and the sales volume declined from the corresponding
period a year earlier
In this operating environment, in the Energy Trade Division, we are promoting development andenhancement of the distribution functions in the sales of industrial fuels and materials, which are themainstay items of this Division. In the asphalt sales business, we have established one of the leading
distribution networks in Japan centering on 11 asphalt terminals nationwide and three company-owned
vessels to carry asphalt, and in the AdBlue sales business, in response to the increasing popularizationof urea SCR vehicles*5, we have established 19 AdBlue supply bases nationwide and a delivery
network. In addition, for marine fuel sales for domestic operations, we have deployed nine dedicatedfuel supply ships nationwide, and for the petroleum products, we have developed a system capable ofswiftly responding to the daily-changing distribution environment by deploying oil storage depots andcompany-owned vessels for domestic operation.
We will continue working for further optimization and greater sophistication of our distributionfunctions by grasping the diversifying customer needs and market environment changes in Japan andabroad.
-4-

As a result of these activities, revenue was ¥111,926 million (down 5.1% year on year), gross profit
was ¥3,568 million (up 8.7% year on year), and profit before tax was ¥1,171 million (up 118.2% year
on year).
*5 Urea SCR vehicle: Urea SCR vehicle purifies NOx using urea solution (AdBlue) and Selective Catalytic Reduction
to reduce NOx in exhaust gas from diesel engines.

(2) Explanation of Financial Position
Assets, liabilities and equity
Total assets amounted to ¥341,482 million at September 30, 2014, an increase of ¥20,450 million fromMarch 31, 2014. Total liabilities amounted to ¥230,294 million, an increase of ¥12,825 million fromMarch 31, 2014. Total equity amounted to ¥111,188 million, an increase of ¥7,625 million from March 31,
2014. The increases in total assets, total liabilities and total equity are all mainly due to increases resulting
from the new consolidation of Osaka Car Life Group Co., Ltd. and others, in particular.

Cash flows
Cash and cash equivalents (net cash) totaled ¥16,090 million at September 30, 2014, an increase of ¥1,839
million from March 31, 2014.

Cash flows from operating activities
Operating activities earned net cash of ¥18,238 million. This was derived mainly from inflows including
profit before tax of ¥5,714 million, and a decrease in funds required for trading due to seasonal factors, etc.

Cash flows from investing activities
Investing activities used net cash of ¥8,776 million. The main items were expenditures including
payments for purchase of property, plant and equipment and investment property of ¥6,854 million andpayments for the acquisition of Osaka Car Life Group Co., Ltd. of ¥2,202 million.

Cash flows from financing activities
Financing activities used net cash of ¥7,640 million. The main items were expenditures due to decrease ofinterest-bearing debt of ¥6,070 million and ¥1,356 million for dividends paid.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
Although operating performance could be affected by various factors, including crude oil prices, market
conditions, changes in the weather, and the Japanese government’s energy policy, we have not revised ourfull-year consolidated earnings forecasts announced on April 30, 2014.

-5-

2.

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

(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Prior
Period Financial Statements
The Itochu Enex Group has applied the following Standards and Interpretations from the three months
ended June 30, 2014 in accordance with the respective transitional measures.
Standard

Name of standard

Description of issuance and amendments

IAS 32Financial Instruments: Presentation

Clarification of requirements for presentation of
offsetting financial assets and financial
liabilities

IFRIC 21

Levies

Accounting treatment for liabilities associatedwith levies

As a result of the application of the IFRIC Interpretation 21 “Levies” as per the above, in the consolidated
statement of financial position as of March 31, 2014, deferred tax assets increased by ¥308 million, othercurrent financial liabilities increased by ¥865 million, retained earnings decreased by ¥507 million, andnon-controlling interests decreased by ¥50 million.
In addition, in the condensed quarterly consolidated statement of financial position as of September 30,
2014, other current assets decreased by ¥383 million, deferred tax assets increased by ¥136 million,
retained earnings decreased by ¥230 million, and non-controlling interests decreased by ¥17 million.
In the condensed quarterly consolidated statement of comprehensive income for the six months ended
September 30, 2013 and for the six months ended September 30, 2014, cost of sales decreased by ¥138
million and ¥189 million, respectively, and selling, general and administrative expense decreased by ¥302
million, and ¥293 million, respectively.

No other significant impact on the Itochu Enex Group exists from the application of the Standards andInterpretations.

-6-

3.

Condensed Quarterly Consolidated Financial Statements(1) Condensed Quarterly Consolidated Statement of Financial Position
As ofMarch 31, 2014ASSETS
Current assets
Cash and cash equivalents
Trade receivables
Other current financial assets
Inventories
Trade advances paid
Other current assets
Total current assets
Non-current assets
Investments accounted for by the equity method
Other investments
Non-current financial assets other than investments
Property, plant and equipment
Investment property
Goodwill
Intangible assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets-7-(Millions of yen)
As of
September 30, 2014

14,251
140,289
11,21318,6552,108
1,677

16,090115,909
13,03925,623
1,743
2,006

188,193

174,410

5,927
7,349
10,59866,988
14,236229
10,28015,470
1,762

5,720
8,272
10,79887,571
15,212229
23,612
13,895
1,763

132,839

167,072

321,032

341,482

As ofMarch 31, 2014
LIABILITIES AND EQUITYCurrent liabilities
Short-term bonds and borrowings
Trade payables
Other current financial liabilities
Income taxes payable
Advances from customers
Other current liabilities
Total current liabilities
Non-current liabilities
Non-current bonds and borrowings
Other non-current financial liabilities
Non-current liabilities for employee benefits
Deferred tax liabilities
Provisions
Other non-current liabilities(Millions of yen)
As of
September 30, 2014

11,499125,655
5,891
4,021
5,648
6,487

17,666
118,351
11,068
1,811
6,398
9,610

159,201

164,904

27,09917,660
7,042
2,409
3,372
686

24,38923,524
10,075
1,993
4,821
588

Total non-current liabilities

58,26865,390Total liabilities

217,469

230,294

19,87818,73759,377(2,098)(1,750)19,87818,73760,828(1,876)(1,751)

94,144

95,816EquityCommon stock
Capital surplus
Retained earnings
Other components of equity
Treasury stock
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

-8-

9,419

15,372

103,563

111,188

321,032

341,482

(2) Condensed Quarterly Consolidated Statement of Comprehensive Income
Six months ended
September 30, 2013

(Millions of yen)Six months ended
September 30, 2014

Revenue
Cost of sales

448,898(415,333)

478,762(439,763)

Gross profit

33,56538,999Other expense
Selling, general and administrative expense
Loss from tangible assets, intangible assets and goodwill
Other – net(27,958)(848)
24(33,133)(308)
414

Total other expense(28,782)(33,027)

Profit from operating activities

4,783

5,972

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

3
218
(356)
0

27
211
(419)
9

Total financial income and costs

(135)

(172)

Share of profit (loss) of investments accounted for by the equity
method71(79)

Profit from sales of investments in subsidiaries and associates

1,897

(7)

6,616

5,714

(2,856)(2,289)

3,760

3,425

3,220
540

2,807
618

Profit before tax
Income tax expense
ProfitProfit attributable to owners of the parent
Profit attributable to non-controlling interests-9-Six months ended
September 30, 2013
Other comprehensive income (net of tax effect)
Items that will not be reclassified to profit or loss
FVTOCI financial assets
Other comprehensive income in associates 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 in associates accounted for by theequity method
Total other comprehensive income (net of tax effect)
Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests(Millions of yen)Six months ended
September 30, 2014

337

452

0

0

(5)
(110)

(15)
(246)

14

31

236

222

3,996

3,647

3,456
540

3,029
618

(Yen)
Earnings per share (attributable to owners of the parent)
Basic
Diluted28.50–

Total trading transactions(Note)

691,153

24.84–(Millions of yen)
696,637

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

- 10 -

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Six months ended
September 30, 2013

(Millions of yen)Six months ended
September 30, 2014

EquityCommon stock
Balance at the beginning of the period

19,87819,878

Balance at the end of the period

19,87819,878

Capital surplus
Balance at the beginning the period

18,737

18,737

Balance at the end of the period

18,737

18,73753,575
3,220
80
(904)

59,3772,807
0(1,356)55,97160,828(1,527)(2,098)

236

222

(80)

(0)

(1,372)(1,876)(1,750)(0)(1,750)(1)(1,750)(1,751)

91,464

95,816

8,175
540

9,419
618

0

(0)

(175)

(215)

500

5,550

Retained earnings
Balance at the beginning of the period
Profit attributable to owners of the parent
Transfer from other components of equity
Dividends paid to owners of the parent
Balance at the end of the period
Other components of equity
Balance at the beginning of the period
Other comprehensive income attributable to owners of theparentTransfer to retained earnings
Balance at the end of the period
Treasury stock
Balance at the beginning of the period
Purchase and disposal of treasury stock
Balance at the end of the period
Total equity attributable to owners of the parent
Non-controlling interests
Balance at the beginning of the period
Profit attributable to non-controlling interests
Other comprehensive income attributable to non-controllinginterests
Dividends paid to non-controlling interests
Changes due to additional acquisitions and sales of interests in
subsidiaries
Balance at the end of the period
Total equity- 11 -

9,040

15,372

100,504

111,188

(4) Condensed Quarterly Consolidated Statement of Cash FlowsSix months ended
September 30, 2013
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 loss (profit) of investments accounted for by the equity
methodLoss (profit) from sales of investments in subsidiaries andassociates
Decrease in trade receivables
Decrease (increase) in inventories
Decrease in trade payables
Other – net
Interest and dividends received
Interest expense
Income taxes paid
Net cash flows provided by operating activities(Millions of yen)Six months ended
September 30, 2014

6,616
5,409
848
135

5,714
5,072
308
172

(71)

79

(1,897)

7

23,168(3,784)(15,986)
1,371
395
(289)
(3,751)

26,266
2,674(17,499)
292
464
(384)
(4,927)

12,164

18,238

(0)

(83)

2,397

2

(988)
1,598
(1,425)
(473)
213

(1)
914
(2,202)
(836)
1,050

(7,648)(6,854)

275

424

(678)
65
–

(1,305)54
61

Net cash flows used in investing activities(6,664)(8,776)

Cash flows from financing activities
Proceeds from bonds and borrowings
Repayments of bonds and borrowings
Net decrease in short-term borrowings
Dividends paid to owners of the parent
Dividends paid to non-controlling interests
Other – net

900(6,413)
(227)
(904)
(175)
(0)

2,440
(2,376)(6,134)(1,356)(215)
1

Net cash flows used in financing activities(6,819)(7,640)Cash flows from investing activities
Purchase of investments accounted for by the equity method
Proceeds from sales of investments accounted for by the equity
methodPurchase of investments
Proceeds from sales of investments
Acquisition of subsidiaries, net of cash acquired
Payment for loans receivableCollection of loans receivable
Payments for purchase of property, plant and equipment andinvestment property
Proceeds from sales of property, plant and equipment andinvestment property
Purchase of intangible assets
Proceeds from sales of intangible assets
Other – net

Net increase (decrease) in cash and cash equivalents(1,319)

1,822

Cash and cash equivalents at the beginning the period

18,062

14,251

Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period- 12 -

50

17

16,79316,090(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern
For the six months ended September 30, 2014
No items to report.
(6) Segment Information
For the six months ended September 30, 2013
(Millions of yen)
Reportable segment
Home-Life

Car-Life

Power &
Utility

Energy
Trade

Total

Other

Total

49,562265,00916,364

117,930

448,86533

448,898–

448,898

335

4,664

–

199

5,198

53

5,251

(5,251)–49,897

269,673

16,364

118,129454,06386

454,149(5,251)

448,898

Gross profit

12,271

14,638

3,343

3,281

33,53332

33,565–33,565

Segment profit

1,732

406

3,921

537

6,596

27

6,623

(7)

6,616

Segment assets

56,237

93,81839,99386,240276,288766

277,054

19,875296,929

Total tradingtransactions

51,764284,931

17,908336,147

690,750403

691,153–

691,153

Adjustment

Consolidated

Revenue
Revenue fromexternal customers
Intersegment
revenue
Total revenue

Other items(Note)

Intersegment transactions have been conducted at ordinary transaction prices.
Segment profit was adjusted based on profit before tax in the condensed quarterly consolidated statement ofcomprehensive income.
The adjustment of negative ¥7 million to segment profit represents corporate profit (loss) not allocated to reportablesegments.
Total trading transactions are an item voluntarily disclosed by the Company and represent the amount of sales inaccordance with Japanese accounting practices.

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For the six months ended September 30, 2014
(Millions of yen)
Reportable segment
Home-Life

Car-Life

Power &
Utility

Energy
Trade

Total

Other

Total

49,023

300,282

17,472111,926

478,703

59

478,762–

478,762

438

717

–

334

1,489

119

1,608

(1,608)–49,461300,999

17,472112,260

480,192

178

480,370(1,608)478,762

Gross profit

11,77520,073

3,518

3,568

38,93465

38,999–38,999Segment profit(loss)

930

516

2,522

1,171

5,139

8

5,147

567

5,714

Segment assets

57,928141,924

49,85979,177

328,888593

329,481

12,001

341,482

Total tradingtransactions

51,483319,139

19,287

306,656

696,56572

696,637–

696,637

Adjustment

Consolidated

Revenue
Revenue fromexternal customers
Intersegment
revenue
Total revenue

Other items(Note)

Intersegment transactions have been conducted at ordinary transaction prices.
Segment profit was adjusted based on profit before tax in the condensed quarterly consolidated statement ofcomprehensive income.
The adjustment of ¥567 million to segment profit represents corporate profit (loss) not allocated to reportablesegments.
Total trading transactions are an item voluntarily disclosed by the Company and represent the amount of sales inaccordance with Japanese accounting practices.

For the fiscal year ended March 31, 2014
(Millions of yen)
Reportable segment

Segment assets

Home-Life

Car-Life

Power &
Utility

Energy
Trade

Total

Other

Total

Adjustment

Consolidated

64,293

99,40544,75993,256

301,713694

302,407

18,625321,032

Change in reportable segments
During the three months ended June 30, 2014, the Company has changed the name of “Total Home-Life
Division” to “Home-Life Division.” Segment information during the six months ended September 30,
2013 has been represented by the name after the change.

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(7) Business Combinations
For the six months ended September 30, 2014
The material business combination during the six months ended September 30, 2014 was as follows:

Acquisition of shares of Osaka Car Life Group Co., Ltd.
Following a resolution at a Board of Directors’ meeting held on April 17, 2014 to acquire 200 issued
shares (51.95% of the total number of issued shares) of Osaka Car Life Group Co., Ltd. (“OCG”),
which owns subsidiaries including Nissan Osaka Sales Co., Ltd., thereby making it into a subsidiary,
the Company concluded a share transfer agreement with NMC 2007 Investment Limited Partnership asof the same date and acquired the shares for ¥6,000 million on May 27, 2014. The aim of thisacquisition of shares is for the Company’s Car-Life Division to extend its reach beyond sales of fuelamong others and the operation of Car-Life Stations by making a full-scale entry into the automobilerelated business. In this way, the move will contribute to the division’s aims of “strengthening the CarLife value chain” and “increasing added value across the entire value chain.” Organically combining
the business assets of OCG and the Company will further enhance the existing business base of theCompany, which primarily includes fuel sales. Moreover, the Company will also pursue synergies topropose new value for customers’ motoring lifestyles.

(1) The fair values of consideration paid, assets acquired and liabilities assumed, and non-controllinginterests as of the acquisition date are shown below:(Millions of yen)AmountItem
Fair value of consideration paid (Notes 1 and 2)
Fair value of non-controlling interests

6,000
5,549

Total

11,549Fair value of assets acquired and liabilities assumed
Current assets
Non-current assets
Current liabilities
Non-current liabilities

17,17330,596(24,578)(11,642)

Net assets

11,549(Notes) 1. The consideration paid was settled in cash.
2. There is no contingent consideration.

The fair values of assets acquired and liabilities assumed and non-controlling interests were
determined comprehensively taking into account the financial and assets conditions reviewed
through due diligence by a third party, assessment of corporate value by a financial advisor and otherfactors.
Acquisition-related costs of ¥97 million for this business combination were recorded in selling,
general and administrative expense.
(Note)

As of September 30, 2014, with regard to the amount of assets accepted and liabilities assumed as of thedate of the business combination, etc., since the contents of recognizable assets and liabilities as of businesscombination date are under close examination, tentative accounting has been performed.

(2) Fair value of acquired receivables
The total amount and fair value of trade receivables were ¥2,823 million. There are no impaired
trade receivables and the contractual amount is expected to be fully collected.

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(3) Performance from the acquisition date
Operating results of Osaka Car Life Group Co., Ltd. and its subsidiaries from the acquisition date,
which are included in the condensed quarterly consolidated statement of comprehensive income forthe six months ended September 30, 2014, are shown below:(Millions of yen)
Osaka Car Life Group Co., Ltd. and its subsidiaries

Item
Revenue
Profit for the period
Profit for the period attributable to owners of the parent

33,486320
166(4) Pro forma information
Pro forma information (unaudited information) in the case of assuming that the businesscombination of Osaka Car Life Group Co., Ltd. and its subsidiaries had been carried out on April 1,
2014, the beginning of the current fiscal year, is omitted, because the approximate amount of this
impact is insignificant.

- 16 -