2-10-1, Toranomon, Minato-ku, Tokyo 105-8430, Japan
TEL +81-3-6327-8000 (General inquiries)
https://www.itcenex.com/english/

ENEX OUTLINE 2018
Published on May 2018

Corporate Information

エネクスロゴ_黒文字.pdf 1 15/06/08 14:38

FY 2017 Business Results

Corporate Profile■
Name■Company■■Number of Employees (as March 31, 2018)
656 (non-consolidated basis, including 205 at subsidiaries)
5,613 (consolidated basis)

ITOCHU ENEX CO.,LTD.
■■Established
January 28, 1961■■Stock exchange listing
Tokyo (first section; stock name: ENEX)
securities code: 8133■
■Representative
Kenji Okada, Representative Director,
President and Chief Executive officer

19.7

16.4

— with Energy, with the Car, with the Home —■of Business■FieldEnergy for all applications, whether as a key
component of social infrastructure or as a meansof enriching people’s lives■ Affiliates (equity method applied)(as of March 31, 2018)

Be Virtuous (reliability and sincerity, creativity andingenuity, transparency and integrity)■■Websitehttps://www.itcenex.com/english/■■Head Office Address
2-10-1, Toranomon, Minato-ku,
Tokyo 105-8430, JapanFY 2015

FY 2016

FY 2017

FY 2015

FY 2016

Plan name

Term

Moving 2018 — Connecting to the future

２years～

FY 2017
FY 2018

FY 2017

FY 2015

FY 2016

FY 2017

FY 2015

34.8

FY 2016

FY 2017

Quantitative plans（FY 2018 consolidated performance）

Profit from operating
activities

Net profit attributable to
Itochu Enex’s shareholders

¥18.7

¥11.3

billionbillion

ROE

Planned investment(2-year total)

9.0% or higher¥56.6

billionIn the first year of the plan, we achieved the profit target set for the final fiscal year of the plan.
And we have once again comprehensively reviewed the market environment and Itochu Enex’s current status.
As a resulf, we decided to upwardly revise the targets for the fiscal year.
※ The figures of the document are based on IFRS (International Financial Reporting Standards)

Acquires Kohnan Corporation's
oil sales business and stock in
Kohnan Fleet Corporation

SALES NISHI-NIHON CO., LTD.)

Itochu Fuel Corporation
is founded2008

Acquires stock in Unoshima
Sansuiso K.K. and advances into
the high-pressure gas business

Acquires stock in Oita
Kyuseki Hanbai Co.,
Ltd. (currently KYUSHUENERGY CO., LTD.)

1965

1970
s

nd ga

f oil a

1978

1979

1995

Promoted to the first sectionof the Osaka Securities
Exchange and the Tokyo
Stock Exchange

Achieves listing on the second section of the Osaka
Securities Exchange and the Tokyo Stock Exchange

1997

Invests and participatesin LP gas sales businessin the Philippines

Celebrates 50th anniversaryof its founding in January andbreaks into the electricity andsteam supply business forfactories

Establishes Kyushu Chunen
Changes company name toCo., Ltd. (currently ENEX PETROLEUM ITOCHU ENEX CO., LTD.

196

41.0

We are now moving forward to implement the new medium-term business plan established in April 2017: “Moving 2018 — Connecting
to the future.” We see the two-year period covered by this plan be a time of building the foundations for our future. We intend to harness
the powoer of the entire Group to reform the revenue base and organizational base, linking these to steady progrress on a growth track.

21

Adopts a single unified
logo, the Enex Mark

Era o

24

Group medium-term business plan

The Enex Group has continued to grow for more than a half century
by adapting to changes in society and lifestyles.

009
1〜2

32

7.5

※ Our polycy is to continue to pay stable dividends, and it aims for a divendend payout ratio (Consolidated) of 40% or more (from FY 2018)2018 Excellent Enterprise of Health and Productivity Management
We are promoting work style change program and have been certified
as an Excellent Enterprise of Health and
Peoductivity (lage corporation category;White 500) by the Ministry of Economy,
Trade and Industry and Nippon
Kenko Kaigi, 2 years in a row.

■■Paid-in Capital
19,877.67 million yen

Record High

40

9.8

10.0

36.3

■ Subsidiaries 53(as of March 31, 2018)■of Conduct■CodeAnnual dividends per share (yen)and a dividend payout ratio (%)

7.5■■Principal Shareholders (as of March 31, 2018)
ITOCHU Corporation 53.97%
Japan Trustee Services Bank, Ltd. (trust account) 3.99%
The Master Trust Bank of Japan, Ltd. (trust account) 3.69%
Enex Fund 2.68%※ excluding treasury stock

The Best Partner for Life and Society

ROE（％）

11.0

10.4

17.2

■■Number of Shares Issued and Outstanding(as of March 31, 2018)
116,881,106■
Philosophy■Corporate

1961

Net profit attributable to
Itochu Enex’s shareholders（billion）

Profit from operating
activities（billion）

2001

2005

Takes over gas supply
service in Nakatsu City,
Oita Prefecture, withthe goal of breaking
into the city gas market
Acquires stock inTokai Corporationand in Seibu
Petroleum
Corporation

2010
〜
2010

f oil,

Takigawa Enex Co., Ltd. (currently
ITOCHU ENEX HOME-LIFE NISHI-NIHON
CO., LTD.) commences operation upontaking over business operations from
Takigawa Industries Co., Ltd.
Takes over business from Kokura
Enterprise Co., Ltd. to commence
its operation

2013

2015

wer

ic po

Sets up the Power &Utility Division andacquires shares of Tainai
Wind Farm Co., Ltd.

et stage nex

rds thwa〜 To

Sendai Power Station Co., Ltd.
commences commercial
operation of its thermal power
stationEstablishes Oji-Itochu Enex Power
Retailing Co., Ltd. and acquires sharesof Nissho Petroleum Gas Corporation

Launches electric power
retailing business

Acquires shares of Tokyo Toshi
Service Company to break into
the heating supply business2018

Electric
power retailmarket is fully
deregulated.

2012

ctr
d ele

n

gas a

2007

Itochu Enex HomeLife Kyushu merges
with Idex Gas K.K.
and is renamed
ECORE CO., LTD.

2014

2011
Era o

2016

2018

2017

Acquires stock in Osaka Car
Life Group Co., Ltd. to launcha car dealer businessProfit attributable toowners of parent
surpasses 10 billion
yen
Establishes ENEARC
Co., Ltd.

The flow of business in the Itochu Enex Group

Our Business（as of April 1, 2018）

Production, management,
and distribution phases

Sales phase

Home-Life Division [Energy & Logistics Group]Grouppower plants

Through delivering LP gas and various smart-energies,

Convenience

Electricity

we propose “comfortable,” “affluent” and “secure” lifestyles.

Steam ※１

MarketEconomic
benefits

Consumers

Heat supply ※2Group plants ofpower sourcesHome fuel cells
Power storage systems

Suppliers
AdBlueCreating added value

Solar power generation

Manufacturers

Considerations
for theenvironment

Comprehensive
energy services ※3

Fly ash recycle

Automotive
andlife services

Petroleumproducts

Expanding creation ofbusiness opportunities

Slop recycle oil

Gasoline
Kerosene
DieselHomes,
restaurants, bars

Fun
experiences

Local officebuildings, hospitals

Retail sales
Wholesalesales

Factories,
business sites

High-pressure gas

Main customers

1.5 million households across Japan, corporate users, 2,700 distributors

Forms of business

Retail and wholesale sales

Overseas markets

Indonesia, philippines

Life & Industrial Energy Division [Energy & Logistics Group]

Interindustries
collaboration

Business domains

Contributing to life and energy in communities from petroleum products throughthe automotive, electric power, and industrial fields

Main producs andservices

Gasoline, kerosene, diesel oil, fuel oil, LP gas, electricity, automotive, car rental,
living and automotive products and services, AdBlue, asphalt, marine fuel, tradingin petrolum products, terminal, recycling of fly ash, recovery and sale of slop

Main customers

Approx. 1,800 Group CS outlets, 3,500 corporate business sites, domestic roadcompanies, sea shippers, public agencies

Forms of business

Retail and wholesale sales

Overseas markets

Guam, Palau

Power & Utility Division [Power & Utility Group]

Community
vitality
connections

We operate electric power-related and heat supply businesses

Shippingthat deliver energy efficiency, comfort and economic benefits.
Business domains

From power generation and demand supply adjustments in pursuit of energy
conservation, comfort, and economic benefits through sale of electricity anddistrict heat supply

Main producs and services Electricity, steam,*1 heat supply,*2 comprehensive energy services*3
Main customers

Corporate users, power companies, office buildings and business complex

Forms of business

Veritically integrated model based on power generation, demand supply, and sales

Trucking

Wholesalesales

Mobility Life Department

Group CS ※4

Business domains

Asphalt

Major oil companies

LP gas, home smart energy devices, city gas, electricity, industrial gas,
solutions for comfortable living

energy and services to benefit local people and industry.

Residual oil
City gas

Energy for home and business use Solutions for richer, more comfortable living

Main producs andservices

We will help build a better society with diverse forms of

Sustainability

LP gasGroup storage,
management
facillities

Safety,reliability

Business domains

Car dealing, next-generation biofuel, and creation of newservices that link the environment, society and life

Main products and services Automobiles of Nissan Osaka Sales Co., Ltd.
Industrial
vitalityRoads※ 1 The steam business supplies high-temperature steam generated from thermoelectric power plants to local factories and other facilities.
※ 2 The heat supply business supplies cold and hot water for air conditioning to multiple office buildings and other buildings from a heat source plant using pipes.
※ 3 Comprehensive energy services handle the comprehensive management of energy facilities, contered on heat, water, and power supply services.
※ 4 CS is an abbreviation for Car-Life Station and refers to service stations that deliver multiple services to meet drivers’ needs.

Joint Participation

Next-generation biodiesel producting business in the U.S.

Project

Euglena domestic bio jet fuel demonstration project

Home-Life Division■Gas■
Supply Business■■Electricity Supply Service for Households
Power sales

We sell electricity under the brand name of
e-koto denki! to customers (households andbusiness establishments) nationwide throughGroup companies involved in sales of LP gas.
We offer economical rate plans that give
T-Points to customers who buy LP gas orelectricity.

Life & Industrial Energy Division
Another action■Automobile■
Energy Sales Business■Car-Life■
Support Business■■AdBlue High-Grade Urea Solution Environment

Power&Utility Division■Sale■of Asphalt■Sale■of Marine Fuel

■Flyash■Reuse Business Environment
Vertically integrated model for electric power businesses

Stimulating domestic demand throughdifferent initiatives(Cooking classes, dietary education, fire education)*A group of ENEARC Co.,Ltd. in Kanto, Chubu, andKansai use the Service name“ENEARC-denki”.

We sell LP gas and town gas, energy sources
widely used at home and businesses as fuelfor cooking, water heating, and industrial applications, to customers nationwide.

*ECORE Co., Ltd. in Kyushu uses the service name
“ECORE no e-denki”.

◉LP gas◉Town gas (Nakatsu, Oita)■Industrial■
Gas Business■■Proposals for“Better”Home Energy Supply

As a mission of a business that supplies
fire in the kitchen, we have cooking
classes to communicate the fun and importance of cooking and provide dietary education to teach Japanese foodculture.

Automobile Energy Sales Business supplies energy to affiliated Car-Life Stations (CS) across Japan, improving the profitability of CSs and providing strong support for CS management
through ENEX Act Programs.
◉Gasoline, kerosene, diesel oil, fuel oil◉Automobile lubricantsBusiness Word CS
CS is an abbreviation for “Car-Life Station.” It is a service station
proposed by ITOCHU ENEX and provides multiple services.

(e-koto Shop)■Corporate■
Energy Sales Business

ITOCHU INDUSTRIAL GAS CO., LTD., aGroup company, sells industrial gas for industrial and medical use and provides gas
container pressure resistance inspection
service and materials for welding.
◉Industrial gas (oxygen, nitrogen, argon,
sterilization gas, etc.)◉Gas container pressure resistanceinspection service◉Materials for welding■Gas■
for Automotive Use

We are expanding our network of automotive gas stations with the aim of promoting
the widespread use of low-pollution LP gas
vehicles.

◉Automobiles and automobile products, vehicle inspection,
maintenance, and sheet metal repair work
◉Merchandise related to the car washer◉Rent-a-car services

Remarkable BusinessCarlife Stadium, Comprehensive
Car-Related Services

As part of our activities to address environmental
problems, we sell AdBlue, a high-grade urea solution that breaks down and detoxifies diesel vehicle exhaust, to customers nationwide.
Business Word AdBlue◉Equipment related to everyday life (burning appliances, kitchen equipment, air-conditioning
equipment, and other household equipment)
Environment◉Smart energy equipment(photovoltaic power generation systems, ENEFARM residential fuel cells)◉Remodeling (kitchen, bathroom, etc.)

tions designed for comfort.

We sell industrial energy to corporate customers that sustain domestic industry and propose
the best energy for saving energy and cutting
costs by offering electricity supply.
◉Gasoline, kerosene, diesel oil, fuel oil, LNG, electricity

Carlife Stadium is the unified brand for our
car-related business and clarifies the value
provided to customers. We give assistancefor enjoyable, comfortable car life, providing services, including a rent a car service,
the concept for which is “Going out withmore fun.”We help with the proper disposal of PCB (polychlorinated biphenyl) used mainly for transformers at electric power companies.

We sell anti-freezing agents used for roads andthe monorail when snow lies in winter and contribute to good traffic conditions throughout theyear.

We have tanks to store petroleum products andchemical products in 2 locations in Japan andoperate them efficiently to satisfy our customers’
storage needs.
◉Logistics, including oil storage facilities◉Leasing of chemical products storage facilities◉Export and import of petroleum products, transactions to adjust domestic supply and demand

Etajima terminal<Selling LP gas in the Philippines>

Creasia Energy Holdings, INC., which
ITOCHU ENEX and ITOCHU Corporation

Sales

Itochu Enex Power(In-house power
generation)

Electric power
development

Supply-demand
management
Enex’sbalancinggroup

Oji Group
power plants

The Company’s power source portfolio

Electric power
exchange andothers52%

Coal-fired thermal

23%

LNG-fired thermal

10%

Oil-fired thermal

1%

FIT power*

14%

Sendai Power Station Co.,Ltd.

Mobility Life Department<Biodiesel plant in Nebraska, U.S.>■Biofuel■business

The Company and Oji-Itochu Enex Power
Retailing Co., Ltd., a Group company, sellelectric power to companies in 8 areas nationwide. From FY2016, they are expanding
alliances with the Home-Life Division andentities in different industries and sellingelectric power also to households.

Joetsu Energy Service Co., Ltd.

■Car■
Dealer Business

Future business vision

A photovoltaic power plant

We aim to propose mobility and lifestyle-related services that help to construct an enhanced re-■Heat■
Supply-Related Businessgional social infrastructure with the positive use of big data, Internet of Things (IoT), artificial intel-

ligence (AI) and other cutting-edge technologies in collaboration with businesses in other sectors.

Life-related services
The Top Network in the Area

Palau Project
Since 2013, we have been participating in
the next-generation biodiesel project run
by Flint Hills Resources Renewable LLC. In
fiscal 2018, we increased our stake in thisbusiness.

We engage in business that includes the saleof new and used cars, vehicle inspection, automotive bodywork, mechanical servicing andmaintenance through Nissan Osaka Sales Co.,
Ltd., which has the top network throughout
Osaka Prefecture and in the Hanshin district of
Hyogo Prefecture.

Nissan Osaka Sales Co., Ltd. is one of the largest dealers affiliated with Nissan Motor in Japan. It is the only dealer affiliated with Nissan
in Osaka Prefecture. Nissan Osaka Sales has
89 dealerships selling new cars, 19 dealerships selling used cars, 3 dealerships selling
Renault cars, 3 vehicle inspection centers, and3 bodywork shops.

We are taking part in a plan to demonstrate
Japan’s first biojet fuel domestically produced
from euglenas, implemented by a team of fivecompanies and a local government, led by Euglena Co., Ltd. Apart from that, we participate
in a next-generation biodiesel manufacturing
project in the U.S.
(Photo: Press conference concerning bio jet
fuel.)

Mobility Life
Department

Use of information technologies(IoT, AI and automation)

Establishment of a next-generation
mobility life business

OJEX

Alliance witha partner ina different
industry

OJEX: Oji-Itochu Enex Power Retailing Co., Ltd.
An electric power sales company that has been establishedjointly with Oji Green Resources Co., Ltd., a subsidiary of Oji
Holdings Corporation

Group member Tokyo Toshi Service Company’s (TTS) heat supply
business provides hot and cold water for heating and air conditioning
to buildings in a certain area and proposes efficient energy use combined with urban development. TTS also provides low-CO2, energy-saving thermal storage contract-based services for a low initialcost at the time of installation or renewal of building air conditioningor hot water supply systems.

■■Taking on the challenges of new
business models
We’re taking on the challenges of adopting
financial solutions in the power and heatbusinesses, as well as the challenge of delivering new products, services, and added value based on customer needs from a retailperspective. In the heat supply business, weplan to expand our service area beyond the
Kanto region.

Business based on a combination of
automobiles and electric power
Nissan Cars + Nissan Osaka e-Denki
A new high value-added retail businessthat has been established in collaboration
between two Enex Group companies, Nissan Osaka Sales Co., Ltd. and Enex Life Service Co., Ltd.

■Demand/supply■
management service
As the leader of a balancing group (BG)
made up of multiple electric power retailers, by balancing demand and supply
Groupwide, we oversee the distribution
and delegation of responsibilities so thateach member can concentrate on his or
her own area of specialization while pursuing improved efficency, economic benefits,risk reduction, and economies of scale.
Image of district heating services

Office Tower X
44-story, 195 m(Harumi Island)
Office Tower Y

Office Tower Z

39-story, 175 m

33-story, 155 m
Heating
tower

Large temperature
difference

Cold
water

Large temperature
difference

Hot
water

◉District heating services (18 districts in the Kanto area, including
Harumi Island, Hakozaki, Makuhari Shintoshin High-tech Business,
Shibaura 4-chome, Ginza 2-chome and 3-chome, Kyobashi
1-chome and 2-chome)

Cold and hot
water tank

Supplying heat to GINZA SIX
Thermal energy for air conditioning
from a plant of TTS contributes to the
comfortable space of GINZA SIX(gross floor area: 147,900 m2), a large
complex that has opened on the
Chuo-dori street at Ginza 6-chome.

Cooling
tower

Hall

Cold watertank

Hot watertank

Evolution of mobility(EV society)

Customers[Electricity Sales Business]

Electric Power Retail Business
Hofu Energy Service Co., Ltd.

Enex

Purchase from the outside(Other companies, markets)*FIT power: Electric power generated from renewable energy that is financially supported by feed-in tariff (FIT) surcharges paid by allelectric power consumers under the FIT scheme

JEN Tainai Wind Farm Co., Ltd.

Itochu Petroleum Co., Pte. Ltd., a wholly
owned subsidiary of ITOCHU Corporation, takes part in the business of IP&E
Holdings, LLC. Some ITOCHU ENEX personnel are stationed at the company.

We have acquired a 25% stake in IP&E Palau, Inc. to step into the import, wholesaleand direct sales business of petroleum
products in the Pacific region with an aim
to achieve stable performance. Along withan increase in annual tourists visiting Palau,this business is expected to achieve further
growth.

Itochu Enex, the domestic petroleum products
trading arm of the Itochu Group, engages in theimport, export and sale in Japan of petroleum
products.

We collect slop (wastewater after washing marine fuel tanks) and sludge (unburnt marine fuel),
which has been disposed of as industrial waste,
and extract and reuse useful oil resources fromthem.

ENEX Electric Power Co., LTD., an ITOCHUENEX Group company, is working tostrengthen the Group’s initiatives in the power
generation business, aiming for environmental
sustainability as well as economic benefits.
The operating companies of ENEX ElectricPower Group have a well-balanced lineup ofelectric power facilities and are expanding
electric generating capacity in accordancewith growth in demand.

Supplying high-temperature steam generated
from power generation to
local plants

U.S. Guam-Saipan Project

PT.ITC ENEX INDONESIA (PT.ENEX) sells
different types of industrial gas constantly to Japanese-affiliated companies
in Karawang International Industrial City
near Jakarta.

■Power■
Generation Business

Purchase

Effective use of energy
from thermal power plants

Mobility Life Department
Life & Industrial Energy Division■Slop■and Sludge Collection and Sale
Business Environment■Petroleum■
Product Trading■Sale■of Anti-freezing Agents◉ENE-POWABO L residential lithium-ion electricity storage systemhave jointly established, has started LP
gas sales in the Philippines.

Marine fuel, marine lubricants

We are considering collecting flyash from spent
fuel at thermal power plants, processing it, andreusing it as a material for road construction.

We offer a range of credit card options to meetthe needs of our CS customers.

Environment

e-koto Shop facilities are strategicallylocated in areas suitable for pursuing acustomer-oriented approach to generating demand. e-koto Shop enables customers to experience the latest energy
products, while providing them withsuggestions on “smart lifestyle” solu-■Storage■
Tank Leasing

We sell marine fuel at major ports in Japan andoverseas. We have strengthened our supply
system using ships that we own and dedicatedships. Our volume of transactions for domestic
vessels is the largest in Japan.

■Credit■Card Business■PCB■
Disposal Intermediary BusinessWe engage in a wide range of operations forhouseholds, including sales of equipment for
a comfortable lifestyle and proposals of renovation.

We take advantage of a nationwide sales network and original supply chain to supply asphalt,
a key industrial material, to customers.

AdBlue is a globally standard high-grade urea solution used in SCR
systems, where AdBlue is sprayed into exhaust gas from diesel vehicles and breaks down NOx into harmless nitrogen and water using the
reducing action of ammonia.

◉(Consumer) Rakuten Point Card◉(Consumer) Car Enex Itsumo Card◉(Corporate) Partners Card◉(Corporate) Fueling Card

Global Business
Home-Life Division<Selling industrial gas in Indonesia>

We provide CSs nationwide with comprehensive
merchandise, information, and expertise in sales
and help them grow.

We have built a business model thatvertically integrates power generation,
supply and demand, and sales. In thisbusiness model, we develop a power
generation business that pursues both
environmental and economic performance by combining our own diverse
power sources with those of the Oji
Group in a balanced manner. On the
supply-demand and sales front, we
make the most of the Group’s expertise and sales network to reduce customers’ electricity rates and ensurestable power supply.

Cold and hot
water tank

DBHP: Air-source turbo
refrigerator (heat recovery)

TR: Air-source
turbo refrigerator

HTHP: Air-source heat pump(heat recovery)

Heat supply center

Home-Life Division■Gas■
Supply Business■■Electricity Supply Service for Households
Power sales

We sell electricity under the brand name of
e-koto denki! to customers (households andbusiness establishments) nationwide throughGroup companies involved in sales of LP gas.
We offer economical rate plans that give
T-Points to customers who buy LP gas orelectricity.

Life & Industrial Energy Division
Another action■Automobile■
Energy Sales Business■Car-Life■
Support Business■■AdBlue High-Grade Urea Solution Environment

Power&Utility Division■Sale■of Asphalt■Sale■of Marine Fuel

■Flyash■Reuse Business Environment
Vertically integrated model for electric power businesses

Stimulating domestic demand throughdifferent initiatives(Cooking classes, dietary education, fire education)*A group of ENEARC Co.,Ltd. in Kanto, Chubu, andKansai use the Service name“ENEARC-denki”.

We sell LP gas and town gas, energy sources
widely used at home and businesses as fuelfor cooking, water heating, and industrial applications, to customers nationwide.

*ECORE Co., Ltd. in Kyushu uses the service name
“ECORE no e-denki”.

◉LP gas◉Town gas (Nakatsu, Oita)■Industrial■
Gas Business■■Proposals for“Better”Home Energy Supply

As a mission of a business that supplies
fire in the kitchen, we have cooking
classes to communicate the fun and importance of cooking and provide dietary education to teach Japanese foodculture.

Automobile Energy Sales Business supplies energy to affiliated Car-Life Stations (CS) across Japan, improving the profitability of CSs and providing strong support for CS management
through ENEX Act Programs.
◉Gasoline, kerosene, diesel oil, fuel oil◉Automobile lubricantsBusiness Word CS
CS is an abbreviation for “Car-Life Station.” It is a service station
proposed by ITOCHU ENEX and provides multiple services.

(e-koto Shop)■Corporate■
Energy Sales Business

ITOCHU INDUSTRIAL GAS CO., LTD., aGroup company, sells industrial gas for industrial and medical use and provides gas
container pressure resistance inspection
service and materials for welding.
◉Industrial gas (oxygen, nitrogen, argon,
sterilization gas, etc.)◉Gas container pressure resistanceinspection service◉Materials for welding■Gas■
for Automotive Use

We are expanding our network of automotive gas stations with the aim of promoting
the widespread use of low-pollution LP gas
vehicles.

◉Automobiles and automobile products, vehicle inspection,
maintenance, and sheet metal repair work
◉Merchandise related to the car washer◉Rent-a-car services

Remarkable BusinessCarlife Stadium, Comprehensive
Car-Related Services

As part of our activities to address environmental
problems, we sell AdBlue, a high-grade urea solution that breaks down and detoxifies diesel vehicle exhaust, to customers nationwide.
Business Word AdBlue◉Equipment related to everyday life (burning appliances, kitchen equipment, air-conditioning
equipment, and other household equipment)
Environment◉Smart energy equipment(photovoltaic power generation systems, ENEFARM residential fuel cells)◉Remodeling (kitchen, bathroom, etc.)

tions designed for comfort.

We sell industrial energy to corporate customers that sustain domestic industry and propose
the best energy for saving energy and cutting
costs by offering electricity supply.
◉Gasoline, kerosene, diesel oil, fuel oil, LNG, electricity

Carlife Stadium is the unified brand for our
car-related business and clarifies the value
provided to customers. We give assistancefor enjoyable, comfortable car life, providing services, including a rent a car service,
the concept for which is “Going out withmore fun.”We help with the proper disposal of PCB (polychlorinated biphenyl) used mainly for transformers at electric power companies.

We sell anti-freezing agents used for roads andthe monorail when snow lies in winter and contribute to good traffic conditions throughout theyear.

We have tanks to store petroleum products andchemical products in 2 locations in Japan andoperate them efficiently to satisfy our customers’
storage needs.
◉Logistics, including oil storage facilities◉Leasing of chemical products storage facilities◉Export and import of petroleum products, transactions to adjust domestic supply and demand

Etajima terminal<Selling LP gas in the Philippines>

Creasia Energy Holdings, INC., which
ITOCHU ENEX and ITOCHU Corporation

Sales

Itochu Enex Power(In-house power
generation)

Electric power
development

Supply-demand
management
Enex’sbalancinggroup

Oji Group
power plants

The Company’s power source portfolio

Electric power
exchange andothers52%

Coal-fired thermal

23%

LNG-fired thermal

10%

Oil-fired thermal

1%

FIT power*

14%

Sendai Power Station Co.,Ltd.

Mobility Life Department<Biodiesel plant in Nebraska, U.S.>■Biofuel■business

The Company and Oji-Itochu Enex Power
Retailing Co., Ltd., a Group company, sellelectric power to companies in 8 areas nationwide. From FY2016, they are expanding
alliances with the Home-Life Division andentities in different industries and sellingelectric power also to households.

Joetsu Energy Service Co., Ltd.

■Car■
Dealer Business

Future business vision

A photovoltaic power plant

We aim to propose mobility and lifestyle-related services that help to construct an enhanced re-■Heat■
Supply-Related Businessgional social infrastructure with the positive use of big data, Internet of Things (IoT), artificial intel-

ligence (AI) and other cutting-edge technologies in collaboration with businesses in other sectors.

Life-related services
The Top Network in the Area

Palau Project
Since 2013, we have been participating in
the next-generation biodiesel project run
by Flint Hills Resources Renewable LLC. In
fiscal 2018, we increased our stake in thisbusiness.

We engage in business that includes the saleof new and used cars, vehicle inspection, automotive bodywork, mechanical servicing andmaintenance through Nissan Osaka Sales Co.,
Ltd., which has the top network throughout
Osaka Prefecture and in the Hanshin district of
Hyogo Prefecture.

Nissan Osaka Sales Co., Ltd. is one of the largest dealers affiliated with Nissan Motor in Japan. It is the only dealer affiliated with Nissan
in Osaka Prefecture. Nissan Osaka Sales has
89 dealerships selling new cars, 19 dealerships selling used cars, 3 dealerships selling
Renault cars, 3 vehicle inspection centers, and3 bodywork shops.

We are taking part in a plan to demonstrate
Japan’s first biojet fuel domestically produced
from euglenas, implemented by a team of fivecompanies and a local government, led by Euglena Co., Ltd. Apart from that, we participate
in a next-generation biodiesel manufacturing
project in the U.S.
(Photo: Press conference concerning bio jet
fuel.)

Mobility Life
Department

Use of information technologies(IoT, AI and automation)

Establishment of a next-generation
mobility life business

OJEX

Alliance witha partner ina different
industry

OJEX: Oji-Itochu Enex Power Retailing Co., Ltd.
An electric power sales company that has been establishedjointly with Oji Green Resources Co., Ltd., a subsidiary of Oji
Holdings Corporation

Group member Tokyo Toshi Service Company’s (TTS) heat supply
business provides hot and cold water for heating and air conditioning
to buildings in a certain area and proposes efficient energy use combined with urban development. TTS also provides low-CO2, energy-saving thermal storage contract-based services for a low initialcost at the time of installation or renewal of building air conditioningor hot water supply systems.

■■Taking on the challenges of new
business models
We’re taking on the challenges of adopting
financial solutions in the power and heatbusinesses, as well as the challenge of delivering new products, services, and added value based on customer needs from a retailperspective. In the heat supply business, weplan to expand our service area beyond the
Kanto region.

Business based on a combination of
automobiles and electric power
Nissan Cars + Nissan Osaka e-Denki
A new high value-added retail businessthat has been established in collaboration
between two Enex Group companies, Nissan Osaka Sales Co., Ltd. and Enex Life Service Co., Ltd.

■Demand/supply■
management service
As the leader of a balancing group (BG)
made up of multiple electric power retailers, by balancing demand and supply
Groupwide, we oversee the distribution
and delegation of responsibilities so thateach member can concentrate on his or
her own area of specialization while pursuing improved efficency, economic benefits,risk reduction, and economies of scale.
Image of district heating services

Office Tower X
44-story, 195 m(Harumi Island)
Office Tower Y

Office Tower Z

39-story, 175 m

33-story, 155 m
Heating
tower

Large temperature
difference

Cold
water

Large temperature
difference

Hot
water

◉District heating services (18 districts in the Kanto area, including
Harumi Island, Hakozaki, Makuhari Shintoshin High-tech Business,
Shibaura 4-chome, Ginza 2-chome and 3-chome, Kyobashi
1-chome and 2-chome)

Cold and hot
water tank

Supplying heat to GINZA SIX
Thermal energy for air conditioning
from a plant of TTS contributes to the
comfortable space of GINZA SIX(gross floor area: 147,900 m2), a large
complex that has opened on the
Chuo-dori street at Ginza 6-chome.

Cooling
tower

Hall

Cold watertank

Hot watertank

Evolution of mobility(EV society)

Customers[Electricity Sales Business]

Electric Power Retail Business
Hofu Energy Service Co., Ltd.

Enex

Purchase from the outside(Other companies, markets)*FIT power: Electric power generated from renewable energy that is financially supported by feed-in tariff (FIT) surcharges paid by allelectric power consumers under the FIT scheme

JEN Tainai Wind Farm Co., Ltd.

Itochu Petroleum Co., Pte. Ltd., a wholly
owned subsidiary of ITOCHU Corporation, takes part in the business of IP&E
Holdings, LLC. Some ITOCHU ENEX personnel are stationed at the company.

We have acquired a 25% stake in IP&E Palau, Inc. to step into the import, wholesaleand direct sales business of petroleum
products in the Pacific region with an aim
to achieve stable performance. Along withan increase in annual tourists visiting Palau,this business is expected to achieve further
growth.

Itochu Enex, the domestic petroleum products
trading arm of the Itochu Group, engages in theimport, export and sale in Japan of petroleum
products.

We collect slop (wastewater after washing marine fuel tanks) and sludge (unburnt marine fuel),
which has been disposed of as industrial waste,
and extract and reuse useful oil resources fromthem.

ENEX Electric Power Co., LTD., an ITOCHUENEX Group company, is working tostrengthen the Group’s initiatives in the power
generation business, aiming for environmental
sustainability as well as economic benefits.
The operating companies of ENEX ElectricPower Group have a well-balanced lineup ofelectric power facilities and are expanding
electric generating capacity in accordancewith growth in demand.

Supplying high-temperature steam generated
from power generation to
local plants

U.S. Guam-Saipan Project

PT.ITC ENEX INDONESIA (PT.ENEX) sells
different types of industrial gas constantly to Japanese-affiliated companies
in Karawang International Industrial City
near Jakarta.

■Power■
Generation Business

Purchase

Effective use of energy
from thermal power plants

Mobility Life Department
Life & Industrial Energy Division■Slop■and Sludge Collection and Sale
Business Environment■Petroleum■
Product Trading■Sale■of Anti-freezing Agents◉ENE-POWABO L residential lithium-ion electricity storage systemhave jointly established, has started LP
gas sales in the Philippines.

Marine fuel, marine lubricants

We are considering collecting flyash from spent
fuel at thermal power plants, processing it, andreusing it as a material for road construction.

We offer a range of credit card options to meetthe needs of our CS customers.

Environment

e-koto Shop facilities are strategicallylocated in areas suitable for pursuing acustomer-oriented approach to generating demand. e-koto Shop enables customers to experience the latest energy
products, while providing them withsuggestions on “smart lifestyle” solu-■Storage■
Tank Leasing

We sell marine fuel at major ports in Japan andoverseas. We have strengthened our supply
system using ships that we own and dedicatedships. Our volume of transactions for domestic
vessels is the largest in Japan.

■Credit■Card Business■PCB■
Disposal Intermediary BusinessWe engage in a wide range of operations forhouseholds, including sales of equipment for
a comfortable lifestyle and proposals of renovation.

We take advantage of a nationwide sales network and original supply chain to supply asphalt,
a key industrial material, to customers.

AdBlue is a globally standard high-grade urea solution used in SCR
systems, where AdBlue is sprayed into exhaust gas from diesel vehicles and breaks down NOx into harmless nitrogen and water using the
reducing action of ammonia.

◉(Consumer) Rakuten Point Card◉(Consumer) Car Enex Itsumo Card◉(Corporate) Partners Card◉(Corporate) Fueling Card

Global Business
Home-Life Division<Selling industrial gas in Indonesia>

We provide CSs nationwide with comprehensive
merchandise, information, and expertise in sales
and help them grow.

We have built a business model thatvertically integrates power generation,
supply and demand, and sales. In thisbusiness model, we develop a power
generation business that pursues both
environmental and economic performance by combining our own diverse
power sources with those of the Oji
Group in a balanced manner. On the
supply-demand and sales front, we
make the most of the Group’s expertise and sales network to reduce customers’ electricity rates and ensurestable power supply.

Cold and hot
water tank

DBHP: Air-source turbo
refrigerator (heat recovery)

TR: Air-source
turbo refrigerator

HTHP: Air-source heat pump(heat recovery)

Heat supply center

"PRESENT" of Itochu Enex Group in figures

4,674 thousand MWh■Business Platform

Electric power sales volume of the Power & Utility Division.
(FY 2017 wholesale sales and retail sales)■Facility■Business Performance
Ranked8 th among 469 companies

Newcomers ranking in terms of electric

18 districts

power sales volume (FY 2018)-53%

Approx.

The maximum energy saving in theHeat supply districts in Kanto area

3,500 facilities

Facilities of corporate customers providing

Heat Supply-related Business

1,200 cylinders

energy and materials(the largest figures of the business)

177MW

Cylinders which J Cylinder Service Co.,Ltd.
conducts pressure resistance inspections each day

Power generation capacityof our group

38 stations

Approx.

automotive gas stations that

5places 1,500milion cubic meters
Industrial gas filling stations
and the capacity (per year)

Car Enex Brand CSs (approx. 400)

(including buses and taxies)

20%

Approx.

2,100CSs

Approx.

Establishments (for corporate

2,700 outlets

LP gas outlets that we have nationwide

customers) of the Japan Car wash

Domestic market share

Federation (Enex-auto)of asphalt sales

2 places 150,000t

1,800 CSs

CSs operating nationwide, including

supply LP gas to LP gas vehicles

25%

Our market share in the domestic
AdBlue high-grade urea solution

Tank terminals owned

20 plants

0.13 milion cards

high-grade urea solution

fueling cards for individual

Sales plants of AdBlue

our group and total stockpiles

Approx.

400 CSs

CSs of convenient Itsumo
Rent-a-Car Service

Effective Car Enex Itsumo Cards,
customers

3 ships
Ships to carryasphalt owned

12 places 43,800t
Hubs of asphalt sales
and total stockpiles

The Best partner for Life and Society— with Energy, with the Car, with the Home —117dealerships

Car dealerships of Nissan Osaka Sales(the largest figures in the area)

1.5 milion households
Households we supply
LP gas and town gas

54,000 contracts

Contracts for e-koto denki!, electric power for
housuholds and business establishments (FY 2017)