The 41st JCCP International Symposium

Leaders Panel – 2 “Leadership and Human Resources Development
responding to management strategies upon transformation”

ENEOS Future Business Projection &Strategic Human Resources
Development for new era
Sugimoto Takahiro
Executive Officer, General Manager,
Engineering & Capital Planning Dept.

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AgendaⅠ. ENEOS Group Overview

p. 2

Ⅱ. ENEOS Future Business Projection

p. 5

Ⅲ. Strategic Human Resources Development for new era

p. 11

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1

Ⅰ. ENEOS Group Overview

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2About the New ENEOS Group

Aiming to become one of the most prominent and internationally competitiveenergy and materials company groups in Asia

ENEOS Holdings
Effective integration andname change(as of the date of annual
shareholder meeting June,2020)

EnergyENEOS

Oil and Natural Gas E&P

JX Nippon
Oil & Gas Exploration
MetalsJX Nippon
Mining & Metals

Listed Group companies
NIPPO, et al.

Reasons for Changes to the Group Management Structure
 To accelerate decision-making and execution of our business in a rapidly changing businessenvironment
 To develop growth businesses and pursue creation of new businesses by utilizing the highly
recognized brand name, ENEOS

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3Location / Capacity of ENEOS Refineries
Total CDU: 1,741.7 KBD - 10 Refineries
Total Ethylene Production – 1M ton / Year – 2 plants

Sendai Refinery: 145,000 BD
Sakai Refinery: 141,000 BD
Mizushima Refinery: 350,200 BD
Marifu Refinery: 120,000 BD

Kashima Refinery: 203,100 BD(Kashima Oil Co., Ltd.)
Chiba Refinery: 129,000 BD(OIREC)
Kawasaki Refinery：247,000 BD・Ethylene production: 1Mton/Year

Oita Refinery: 136,000 BD

Negishi Refinery: 150,000 BD
Yokohama Plant (Lubricant)Wakayama Refinery: 120,400 BD

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Ⅱ. ENEOS Future Business Projection

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5

Scenario in 2040
Low-carbon, recycling-oriented society
Mass introduction ofrenewable energyEV, used for car

sharing and energy
storage, replaces
gasoline and diesel cars

Distributed
energy resources
Recyclingwith energy
technology andstorage
infrastructure formetals and plastic
in place

Various service providers help people
enjoy a more comfortable life

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6Overview of Our Future Businesses to 2040
Bubbles show 2040 business portfolio image

Pursue both strategic growthand cash flow maximization
Adding high value
to petroleum

Expectation

Enhance ourtechnological capabilities

Petrochemicals

Materials(Electronicmaterials, etc.)

Strategic
investment

Act as a platform
providerCommunity
Services

Environmentallyconscious
Next-Generation
businesses
Energy Supply

Contribute to the development of a lowcarbon, recycling-oriented society
Oil and Natural Gas E&P
Maximizecash flows

Petroleum
Refining &Marketing

Metal Resources Development,
Copper Smelting and Refining

Stable supply of energy and optimization of value chain
2019

Create value by transforming our current business structure

2040

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7

Carbon Neutrality Plan (Target Setting & Definition)
Global Movement

Domestic Movement

 IPCC1 released “Special Report on Global
Warming of 1.5°C”
 “Glasgow Climate Pact” adopted at COP26
 Advances in creation of mechanism for SBTi 2Criteria and Recommendations

 “Declaration of Carbon Neutrality by 2050” announced
 “The Sixth Strategic Energy Plan” approved by theCabinet Interim report on long-term road map for
CCS announced
Announced in May 2020

Carbon Neutrality Plan（Reference）Environmental Vision

Adjusting toTarget Setting

FY2030

Scope1,246% reduction in net CO2 emissions

the government target

FY2040

Scope1,2

Carbon neutrality(Net zero CO2 emissions)the government target

Scope1,2

Carbon neutrality (Net zero CO2 emissions)
Aiming for realization of carbon neutrality in stepwith the government and other companies

FY2050

Scope3

Definition

Target Management
CO2 RemovalMeasures

Realization of carbon
neutrality for own emissions―The amount of CO2 emissions 3CO2 reduction amounts 4Counting only “measures for directly removing CO2”Counting “sales of renewableenergy” and “eco-friendlyproducts”

1 Intergovernmental Panel on Climate Change
3 Base Year：FY2013

Adjusting to―

2Science Based Targets initiative: initiatives for establishing reduction targets through scientific expertise

4 Base Year：FY2009

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8Carbon Neutrality Plan
Scope
1, 2

 In order to achieve 46% reduction in CO2 emissions, we aim to start CCS businesses by the endof FY2030.
 Realization of carbon neutrality through self-help efforts, CCS and CO2 removal (forest absorption,etc.)①Decline in crude oil throughput due to lower demand for petroleum products（million ton）

4040

Net CO2 emissions②Self-help efforts such as energy conservation at refineries, fuel switching, use of renewable energy

3020
CO2emissions

30③CCS and CO2 removal（forest absorption, etc.)

28

CO2 emissions

28

242400

16- 46%

191610▲3Self-help efforts, CCS

20▲20Carbon Neutrality▲16Self-help efforts, CCS, CO2 removal（forest absorption, etc.）
FY2013

FY2019FY2020（Actual）（Actual）（Actual）

13FY

19FY

20FY

FY203030FY

FY204040FY

1 Revised from May 2020 announcement (17 million tons) due to accuracy improvement taking into account of the current situation

Scope
3

 Working together with the government and other companies for the realization of Carbon
Neutrality by the end of FY2050
 Pursuing energy transition through expansion of renewable energy and earlycommercialization of hydrogen, SAF and synthetic fuels
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9Illustration of future business structure
To establish a decarbonized and recycling-oriented society, we will build a supply chain of energy,
recyclable metals, chemical products and materials with a focus on CO2-free electricity, hydrogen andfuels
Outside Japan
In JapanRenew ables.

Customer

Renew ables.

Renewable
Electricity.

.

Renewable
Electricity.

Renewable
Electricity

Refineries, Plants, etc.

Water Electrolysis,
Direct electrolysis hydrogeneration

Marine Transportation

Receivingfacilities

Storage
Battery

WaterElectrolysis.

Organic Hydride(MCH).

LiquifiedHydrogenHydrogenAmmonia
CO2CCS Unused Resources

Producing
Synthetic Fuel

CO2.

Ammonia.

Synthetic Fuel
Biofuel,Chemical Manufacturing,
Plastic Recycling

Bio-based Materials

CCUS
CO2Hydrogen

SyntheticFuel.

Power Plants/etc.＋CO2 Capture

Customer

EnergyManagementSystem.

Basic ChemicalProducts

Waste Plastic

Metal, Recycling.

Copper,precious metal
Recycled Raw
Material
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Ⅲ. Strategic Human Resources Development for new era

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11

Policy for Human Resources Development(1) Become one of the most prominent and internationally-competitiveenergy and materials company groups in Asia
(2) Create value by transforming our current business structure(3) Contribute to the development of a low-carbon, recycling- oriented society

Promote transforming Business Structure
Conventional Technology New Technology(CN, DX)
Diverse Human
Resources
Innovation andCreativity

Challenging Spirit

Leadership

Improving Operation &Engineering Skill

Secure IndustryReady Personnel

Information &Communication Technology(ICT)
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12Strategic Human Resources Development in ENEOS(Policy measures for priority items in HR Development)

Priority Items

Global Human
Resources

Policies / Measures
Recruitment

Education

Assignment /DeploymentDiversity
Recruitment

Training in Overseas

Expand overseas
assignment

Training for projects
development(ex; M&A, Designthinking, DX）

a. To challenge aposition,b. To entry
yourself to transfer
to other dept. youwant,c. Job posting: torecruit candidates
for specific job in acompany①

Challenging Spirit
for Creativity andInnovation

Secureindustry-readypersonnel

SupportAppropriate
CarrierDevelopment

Recruit byoccupation

Voluntary growthManagerial
talents④②

Professional
education programfor respective
expertise/development
Independent
academic support
Training for selected
personnel

Appraisal /Carrier
Development③Personnel transfer
among divisions

PersonalAppraisala. Interview
b. Development
planning
Committee forHR development

Select and cultivate human resources who can lead ENEOS withtremendous leadership in the future
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Thank you for your attention !

Enegori-kun
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