This document is an English translation of quarterly financial results report released on January 31, 2018 and written initiallyin Japanese.
The Japanese original should be considered as the primary version.

January 31, 2018

Consolidated Financial Results for the First Nine Months of
the Fiscal Year Ending March 31, 2018
<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, Representative Director, President and CEO
Keisuke Hioki, General Manager, Finance & General Accounting Department
Tel: +81-3-6327-8010

Scheduled date to file quarterly securities report: February 9, 2018
Scheduled date to commence dividend payments: –Preparation of supplementary results briefing material on quarterly financial results: None
Holding of quarterly financial results presentation meeting: None
(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated financial results for the first nine months of the fiscal year ending March 31, 2018(from April 1, 2017 to December 31, 2017)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Nine months ended
December 31, 2017
December 31, 2016

Total tradingtransactions

Profit fromoperatingactivities

Millionsof yenMillionsof yen%Net profit

Comprehensive
income%Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%814,044

11.5

14,2995.0

15,693

20.1

10,929

27.6

9,278

34.2

11,76935.4

730,108(12.0)

13,621

18.2

13,062

21.3

8,565

27.3

6,912

19.3

8,692

33.8

Basic earnings per
share attributable
to Itochu Enex’s
shareholders
Nine months ended
December 31, 2017
December 31, 2016

Profit before tax

Net profit
attributable to
Itochu Enex’s
shareholders

Diluted earnings
per share
attributable to
Itochu Enex’s
shareholders

Yen

82.15
61.17

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 subsidiaries conducted as a party in contracts and for which they
acted as an agent.

(2) Consolidated financial position
Total assets

As ofDecember 31, 2017
March 31, 2017

Total shareholders’equityTotal equity

Millions of yen

Millions of yen

375,531344,603

Ratio of shareholders’equity to total assets

Millions of yen

134,987
127,477%

114,800
108,51130.6
31.5

2. Cash dividends
Annual cash dividends per share
Second quarterend

First quarter-end
Fiscal year ended
March 31, 2017
Fiscal year ending
March 31, 2018

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

–

13.50

–

18.50

32.00

–

16.00

–
16.00

32.00

Fiscal year ending
March 31, 2018
(Forecast)
Note: Revisions to the forecasts of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2018(from April 1, 2017 to March 31, 2018)

Total tradingtransactions
Millions of yen

Fiscal year ending
March 31, 2018

1,150,000

Profit from operating
activities% Millions of yen

11.8

16,500(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(16.2)

17,800% Millions of yen(8.0)

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

10,400

%

(0.0)

Yen

92.05

* 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 December 31, 2017

116,881,106 shares

As of March 31, 2017

116,881,106 sharesb. Number of treasury stock at end of period
As of December 31, 2017

4,001,968 shares

As of March 31, 2017

3,892,374 sharesc. Average number of outstanding shares during period (cumulative from the beginning of the fiscal year)
For the nine months ended December 31, 2017112,933,910 shares

For the nine months ended December 31, 2016

112,989,108 shares* Quarterly financial results reports are not required to be subjected to quarterly reviews.
* 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 Nine Months, (3) Explanationof Consolidated 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 Nine 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. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto .................. 6(1) Condensed Quarterly Consolidated Statement of Financial Position .............................................. 6(2) Condensed Quarterly Consolidated Statement of Comprehensive Income .................................... 8(3) Condensed Quarterly Consolidated Statement of Changes in Equity ........................................... 10(4) Condensed Quarterly Consolidated Statement of Cash Flows ....................................................... 11(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern .................................... 13(6) Segment Information .......................................................................................................................... 13(7) Reorganization and Integration of the Liquefied Petroleum Gas (LPG) Wholesale and Retail
Businesses ............................................................................................................................................ 15

-1-

1.

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

Results of operations
During the nine months ended December 31, 2017, the Japanese economy maintained its moderate
trend of recovery, supported by improvements in corporate earnings and the employment environment,
etc. However, the outlook for the global economy remained uncertain due to factors such as increasing
geopolitical risks in the Far East and economic trends in China and other emerging countries, etc.
In the petroleum distribution industry, the decline in demand continues and the outlook for crude oil
prices remains uncertain.
In the electric power industry, the Power Producers and Suppliers (PPS) are gradually gaining market
share, including the low voltage market, which was liberalized in the previous fiscal year. However, theoutlook is still uncertain due to intensifying competition between business operators and issues
surrounding the restart of nuclear power plants by major power companies, etc.
In this environment, the Itochu Enex Group announced its new two-year medium-term business plan
“Moving 2018 Connecting to the future” in April 2017, and has been advancing its business based on
the following basic policies:<1> “Connecting to future growth” — Reforming the revenue base —(1) Optimizing resources(2) Improving profitability(3) Developing the customer base<2> “Connecting people and functions of the Group” — Reforming the organizational base —(1) Reinforcing organizational strength(2) Nurturing autonomous human resources(3) Promoting ENEX EARLY BIRD, a Plan to Transform Our Approach to WorkAs part of those initiatives, we reorganized the Group’s business divisions in April 2017. The Car-Life
Division and the sale of industrial fuels and materials and other operations in the Energy Innovation
Division were combined to form the Life Energy & Logistics Division, while the Energy Innovation
Division was reorganized as the Industrial Energy & Logistics Division. Responding to an industry
undergoing rationalization such as structural realignment in response to decreasing demand for
petroleum, the Group established a structure, with a petroleum sales business integrated from theregional organization level, that provides everything including services, products, and materials tocustomers.
As a result of these activities, revenue was ¥544,109 million (up 10.6% year on year), profit fromoperating activities was ¥14,299 million (up 5.0% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥9,278 million (up 34.2% year on year).

2)

Results of operations by segment<Power & Gas Business Group>
Home-Life Division
In the Home-Life Division, we established ENEARC Co., Ltd. (ENEARC) in October 2017 through a
joint investment with OSAKA GAS CO., LTD. (OSAKA GAS). Sales companies in the Itochu Enex
Group and the OSAKA GAS Group were placed under the umbrella of the newly established company,
and the Itochu Enex Group acquired shares in three Osaka Gas Group sales companies in Hokkaido and-2-two prefectures in Shikoku. As a result, the number of supply contracts increased from roughly 344,000
at the end of the second quarter to approximately 540,000 at the end of the third quarter.
With regards to profitability, profit from operating activities increased year on year, reflecting an
improvement in profit margins due to an increase in LP gas import prices, as well as steady growth in
the electricity sales business for households. The business focused on promoting sales of combined LP
gas and electricity supply packages, which lifted the number of supply contracts by around 7,000
during the third quarter to approximately 49,000 contracts.
In overseas business, the customer base is growing strongly at our industrial gas sales business inIndonesia (PT. ITC ENEX INDONESIA) and at our LP gas sales business in the Philippines (IslaPetroleum & Gas Corporation). Going forward, we will continue to expand the overseas business byutilizing know-how nurtured in Japan.
As a result of these activities, revenue was ¥68,019 million (up 18.5% year on year), profit fromoperating activities was ¥1,638 million (up 6.9% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥2,275 million (up 444.8% year on year) due to the recognition of profits fromthe reorganization and integration with the Osaka Gas Group in the third quarter ended December 31,
2017.
Power & Utility Division
In the Power & Utility Division, electricity sales volume and profits in the electricity sales field of theelectric power business increased from the corresponding period of the previous fiscal year, led by theCompany and Oji-Itochu Enex power retailing Co., Ltd., reflecting growth in electricity sales tobusiness users and households, stronger capabilities in electricity supply and demand operations, andcloser cooperation between electricity sales operations and electricity supply and demand operations. In
this field, ENEX LIFE SERVICE CO., LTD. will lead efforts to form alliances with companies thathave strong customer bases in local areas and companies in other sectors in order to promote
investigation of new value proposals for households and small companies.
Meanwhile, in the power generation field, total power generation increased from the corresponding
period of the previous fiscal year due to the start of operations at a new thermal power plant in October
2017, but a continued rise in the cost of raw materials led to a decline in profits. In this field, we aim toensure stable electricity supplies and reduce environmental impact by enhancing our portfolio of powersources and investing in renewable energy power generation facilities.
In the heat supply business*1, demand for heat varied due to fluctuations in average temperaturesduring the first nine months of the fiscal year, but overall demand for heat increased year on year due tothe impact of GINZA SIX*2, to which supplies started in April 2017. In addition, the divisioncontinued to develop a comprehensive energy services business to satisfy the increasingly diverse
needs of customers. Initiatives included the establishment of The Reliance Energy Okinawa,
Incorporated in December 2017 as a joint venture between The Okinawa Electric Power Company,
Incorporated and Tokyo Toshi Service CO., LTD. to provide heat supply and other energy services to
the Okinawa area.
As a result of these activities, revenue was ¥51,880 million (up 18.6% year on year), profit fromoperating activities was ¥4,835 million (down 4.6% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥2,495 million (down 2.7% year on year).
*1 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.
*2 GINZA SIX is a multipurpose commercial facility located in Ginza district, Chuo-ku, Tokyo. Group company
Tokyo Toshi Service CO., LTD. provides district heating services to the facility.

<Energy Innovation & Logistics Business Group>
Life Energy & Logistics Division
In the Life Energy & Logistics Division, sales volume and profits both increased from thecorresponding period of the previous fiscal year, despite an operating environment characterized by a-3-

continued decline in demand for fuel in the domestic market.
Effective from this fiscal year, the Car-Life Stations (CS) -related*3 business, industrial fuel business,
AdBlue*4 business, business user electricity supply business and other operations were combined toform the Life Energy & Logistics Division, which provides comprehensive products and service
solutions to satisfy the needs of local customers in each area.
In the Industrial Energy sales business, we promote proposals of new products such as sales of GTL*5
fuel, which is made using natural gas as a raw material, as well as conventional industrial fuels
including kerosene, fuel oil, and LP gas.
In the AdBlue sales business, we are expanding sales channels such as exports to Singapore and sales
for ships.
In the CS-related business, we continued to introduce our new POS system at affiliated CS sites andused a shared loyalty points system to exchange customers with companies in other sectors. The
number of Car-Life Stations in the Itochu Enex Group as of December 31, 2017, was 1,845, marking a
net decrease of 43 stations from the end of the previous fiscal year due to planned withdrawal of
unprofitable stations.
In the automobile-related business, ENEXAUTO CO., LTD. started operating the Itsumo Rent-a-Car
business under a new brand, Carlife Stadium car rentals in April 2017. We will improve the quality ofvehicles and sales services for customers to expand the functions of the car rental network, while also
working to attract more customers through web-based promotions and customer transfers from othercompanies.
At Nissan Osaka Sales Co., Ltd., unit sales in the third quarter declined sharply compared with thesame period a year earlier due to the impact of improper conduct in final inspections for vehicles by
Nissan Motor Co., Ltd., which came to light in September 2017. However, total unit sales in the firstnine months of the fiscal year increased year on year due to strong sales in the first six months of the
fiscal year.
As a result of these activities, revenue were ¥360,304 million (up 4.6% year on year), profit fromoperating activities was ¥5,882 million (up 28.5% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥3,227 million (up 40.3% year on year).
*3 Car-Life Stations: Car-Life Stations are service stations offering multiple services provided by the Company.
*4 AdBlue is a high-grade urea solution used in SCR systems, which detoxifies nitrogen compounds (NOx) containedin exhaust gases of diesel vehicles.
*5 GTL is the acronym of Gas to Liquid technology, which is used to convert natural gas to gasoline, kerosene, diesel
and other fuels. GTL is a method of producing environmentally friendly fuel that contains almost no sulfur, metals,
etc.

Industrial Energy & Logistics Division
The Industrial Energy & Logistics Division was formed as a new division in this fiscal year as a resultof a structural reorganization of the Energy Innovation Division and the Car Life Division. The division
is focused on four main businesses: the asphalt sales business, marine fuel sales business, petroleum
product trading business and the tank terminal business. Leveraging the highly specialist skills of all its
businesses, the division is developing advanced, optimized supply chains in each business and using
diverse networks to expand trading volume in order to build a stable earnings base.
As part of those initiatives, in the marine fuel sales business, we deployed a new fuel supply ship at
Oita Port in November 2017, giving the business a nationwide fleet of eight supply ships.
In addition, we will also focus on building the environmental and recycling-related business as a new
business base. In the fly ash business*6, which recycles and sells coal ash discharged from theCompany’s thermal power plants, KANOU FA CO., LTD. started full-scale operations in November
2017. In addition, the slop and oil recycling business, which recycles and sells waste oil recovered fromships, is building up its track record and steadily working to commercialize its operations. The division
will also actively develop and explore other new initiatives and investment projects.
As a result of these activities, revenue were ¥63,906 million (up 38.4% year on year), profit fromoperating activities was ¥934 million (down 41.9% year on year), and net profit attributable to Itochu-4-Enex’s shareholders was ¥659 million (down 42.9% year on year).
*6 Fly ash business: The fly ash business recovers and processes fly ash (a type of coal ash discharged from coal-fired
thermal power plants). The processed fly ash is then reused as a roadbed material for asphalt road surfacing andother applications.

(2) Explanation of Financial Position
Assets, liabilities and equity
Total assets amounted to ¥375,531 million as of December 31, 2017, an increase of ¥30,928 million fromMarch 31, 2017, mainly reflected an increase in trade receivables. Total liabilities amounted to ¥240,544
million, an increase of ¥23,418 million from March 31, 2017, mainly due to an increase of trade payables.
Total equity totaled ¥134,987 million, an increase of ¥7,510 million from March 31, 2017, due to factors
including an increase from net profit attributable to Itochu Enex’s shareholders and a decrease by paymentof cash dividends, and the like.
Cash flows
Cash and cash equivalents (net cash) totaled ¥25,425 million as of December 31, 2017, up ¥2,698 million
from March 31, 2017.
Cash flows from operating activities
Operating activities earned net cash of ¥19,176 million. Major items included profit before tax of ¥15,693
million, depreciation and amortization of ¥8,311 million and income taxes paid of ¥7,101 million.
Cash flows from investing activities
Investing activities used net cash of ¥9,506 million. Major items included payments for purchase ofproperty, plant and equipment and investment property, etc. of ¥12,134 million, proceeds from sales ofinvestments of ¥5,411 million, and expenditures due to an increase in deposits paid of ¥4,000 million.
Cash flows from financing activities
Financing activities used net cash of ¥6,967 million. Major items included expenditures due to a decrease
in interest-bearing debt of ¥2,333 million and expenses as payment of cash dividends of ¥4,513 million.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
Because 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 28, 2017.

-5-

2.

Condensed Quarterly Consolidated Financial Statements and Significant Notes
Thereto(1) Condensed Quarterly Consolidated Statement of Financial Position
As ofMarch 31, 2017
ASSETS
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-6-(Millions of yen)
As ofDecember 31, 2017

22,727
94,75929,70927,1551,900
1,877

25,425
117,660
36,861
24,8881,376
4,590

178,127

210,800

11,7497,461
10,80387,588
11,986533
23,638
11,3591,359

21,537
3,671
11,201
85,631
10,368533
20,747
9,466
1,577

166,476

164,731344,603375,531

As ofMarch 31, 2017
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 ofDecember 31, 2017

9,318
101,902
8,719
5,258
6,460
12,094

10,484
133,662
9,273
1,224
5,834
8,919

143,751

169,396

31,702
24,501
9,761
1,961
5,052
398

30,89023,065
10,017
2,129
4,793
254

Total non-current liabilities

73,375

71,148

Total liabilities

217,126

240,544

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

19,87818,74073,300(1,655)(1,752)

19,87818,93078,569(704)(1,873)

Total shareholders’ equity

108,511

114,800

Non-controlling interests
Total equity
Total liabilities and equity-7-

18,96620,187

127,477

134,987344,603375,531(2) Condensed Quarterly Consolidated Statement of Comprehensive Income
Nine months ended
December 31, 2016

(Millions of yen)
Nine months ended
December 31, 2017

Revenue
Cost of sales

491,905(424,066)

544,109(478,958)

Gross profit

67,83965,151Other expense
Selling, general and administrative expenses
Loss from tangible assets, intangible assets and goodwill
Other – net(54,122)(689)
593(51,972)
(20)
1,140

Total other expense(54,218)(50,852)

Profit from operating activities

13,621

14,299Financial income and costs
Interest income
Dividends received
Interest expense
Other financial income and costs – net

62
243
(719)
0

31
293
(688)
(166)

Total financial income and costs

(414)

(530)

(145)
–

(402)
2,326

13,062

15,693

Share of loss of investments accounted for by the equity method
Gains on business reorganization and others
Profit before tax(4,497)(4,764)

Net profit

Income tax expense

8,565

10,929Net profit attributable to:
Net profit attributable to Itochu Enex’s shareholders
Net profit attributable to non-controlling interests

6,912
1,653

9,278
1,651

8,565

10,929Total-8-

Nine months ended
December 31, 2016
Other comprehensive income (loss), net of tax effectItems that will not be reclassified to profit or loss
FVTOCI financial assets
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 (loss) of investments accounted forby the equity method(Millions of yen)
Nine months ended
December 31, 2017

71

1,121

24

23

(81)
53

(18)
40

60

(326)

127

840

Comprehensive income

8,692

11,769Comprehensive income attributable to:Comprehensive income attributable to Itochu Enex’s shareholders
Comprehensive income attributable to non-controlling interests

7,038
1,654

10,119
1,650

8,692

11,769Total other comprehensive income, net of tax effect

Total

(Yen)
Earnings per share attributable to Itochu Enex’s shareholders
Basic
Diluted61.17–

Total trading transactions(Note)

730,108

82.15–(Millions of yen)
814,044

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

-9-(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Nine months ended
December 31, 2016

(Millions of yen)
Nine months ended
December 31, 2017

EquityCommon stock
Balance at the beginning of the period

19,87819,878

Balance at the end of the period

19,87819,87818,740–18,740190

18,74018,93066,024
6,912(336)(2,881)73,3009,278(111)(3,898)69,71878,569(2,364)(1,655)127

840

Capital surplus
Balance at the beginning of the period
Acquisition of subsidiary shares from non-controlling interests
Balance at the end of the period
Retained earnings
Balance at the beginning of the period
Net profit attributable to Itochu Enex’s shareholders
Transfer from other components of equity
Cash dividends paid to Itochu Enex’s shareholders
Balance at the end of the period
Other components of equity
Balance at the beginning of the period
Other comprehensive income attributable to Itochu Enex’s
shareholders
Transfer 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 shareholders’ equity
Non-controlling interests
Balance at the beginning of the period
Net profit attributable to non-controlling interests
Other comprehensive income attributable to non-controllinginterests
Cash dividends paid to non-controlling interests
Changes due to additional acquisition and sale of interests in
subsidiaries
Balance at the end of the period
Total equity- 10 -

336

111(1,901)(704)(1,752)(0)(1,752)(121)(1,752)(1,873)

104,683

114,800

16,636
1,653

18,966
1,651

0

(1)

(345)

(615)

–

186

17,94520,187

122,628

134,987

(4) Condensed Quarterly Consolidated Statement of Cash Flows(Millions of yen)
Nine months ended
December 31, 2016
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss from tangible assets, intangible assets and goodwill
Financial income
Share of loss of investments accounted for by the equity method
Gains on business reorganization and others
Increase in trade receivables
Decrease (increase) in inventories
Increase in trade payables
Other – net
Interest and dividends received
Interest expense
Income taxes paid
Net cash flows provided by operating activities
Cash flows from investing activities
Purchase of investments accounted for by the equity method
Purchase of investments
Proceeds from sales of investments
Acquisition of subsidiaries, net of cash acquired
Loss of control of subsidiaries
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
Increase in deposits paid – net
Other – net
Net cash flows used in investing activities- 11 -

Nine months ended
December 31, 201713,062
8,132
689
414
145
–
(27,558)(196)
23,585(4,444)467(637)(5,533)

15,693
8,311
20
530
402
(2,326)(24,096)
1,531
32,500(6,322)653(619)(7,101)

8,126

19,176(1,593)
(10)
1,475
–
–
(1,613)
1,534(2,525)(246)
5,411(3,496)
(598)
(291)
5,429

(6,236)(10,016)

1,013

2,483

(829)
–
(6,000)283(2,118)100(4,000)361(11,976)(9,506)

(Millions of yen)
Nine months ended
December 31, 2016

Nine months ended
December 31, 2017

Cash flows from financing activities
Proceeds from bonds and borrowings
Repayments of bonds and borrowings
Net increase (decrease) in short-term borrowings
Cash dividends paid to Itochu Enex’s shareholders
Cash dividends paid to non-controlling interests
Other – net

7,500(2,738)(1,514)(2,881)
(345)
(0)

–
(7,668)5,335(3,898)
(615)
(121)

Net cash flows provided by (used in) financing activities

22(6,967)

Net increase (decrease) in cash and cash equivalents(3,828)

2,703

Cash and cash equivalents at the beginning of the period

20,82422,727

Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period- 12 -(15)(5)

16,981

25,425(5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern
No items to report.
(6) Segment Information
For the nine months ended December 31, 2016
(Millions of yen)
Reportable segment
Home-Life
Division

Power & Utility
DivisionLife Energy &Logistics
Division

Industrial
Energy &Logistics
Division

Total

57,37843,739344,618

46,170Adjustment

Consolidated

491,905–

491,905

Revenue
Revenue fromexternal customers
Intersegment revenue

206

321

2,939

286

3,752

(3,752)–

Total revenue

57,58444,060347,557

46,456495,657(3,752)491,905

Gross profit

18,716

7,474

38,646

3,003

67,839–67,839Profit fromoperating activities

1,532

5,070

4,577

1,608

12,787834

13,621

Profit before tax

1,451

4,845

4,338

1,656

12,290772

13,062

Net profit
attributable to
Itochu Enex’s
shareholders

418

2,566

2,300

1,154

6,438

474

6,912

Total assets

61,88764,000156,157

30,062

312,106

21,763

333,869

Total tradingtransactions

60,72345,752514,702108,931

730,108–

730,108

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥474 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥21,763 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.

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For the nine months ended December 31, 2017
(Millions of yen)
Reportable segment
Home-Life
Division

Power & Utility
DivisionLife Energy &Logistics
Division

Industrial
Energy &Logistics
Division

Total

68,01951,880360,304

63,906

Adjustment

Consolidated

544,109–544,109

Revenue
Revenue fromexternal customers
Intersegment revenue

151

4,195

2,239

11

6,596

(6,596)–

Total revenue

68,17056,075362,543

63,917550,705(6,596)544,109

Gross profit

17,9157,870

37,252

2,114

65,151–

65,151

Profit fromoperating activities

1,638

4,835

934

13,2891,010

14,299Profit before tax

3,638

4,618

5,553

958

14,767926

15,693

Net profit
attributable to
Itochu Enex’s
shareholders

2,275

2,495

3,227

659

8,656

622

9,278

Total assets

65,22576,669162,374

42,521

346,789

28,742375,531

Total tradingtransactions

71,37254,541

573,841

114,290814,044–814,044

5,882

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of ¥622 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit(loss) not allocated to reportable segments.
The adjustment of ¥28,742 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.

As of March 31, 2017
(Millions of yen)
Reportable segment

Total assets(Note)

Home-Life
Division

Power & Utility
DivisionLife Energy &Logistics
Division

Industrial
Energy &Logistics
Division

Total

Adjustment

Consolidated

65,03370,700149,422

29,429314,584

30,019344,603

The adjustment of ¥30,019 million to total assets represents corporate assets not allocated to reportable segments.

Change in reportable segments
In the first quarter ended June 30, 2017, the Car-Life Division and the sale of industrial fuels and materials
and other operations in the Energy Innovation Division were combined to form the Life Energy &Logistics Division, while the Energy Innovation Division was reorganized as the Industrial Energy &Logistics Division. As a result, effective from the first quarter ended June 30, 2017, the Company has
reclassified its reportable segments.
Due to the change in segments, segment information for the first nine months of the previous fiscal year
and as of the end of the previous fiscal year (March 31, 2017) has been adjusted based on the new segmentclassifications.

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(7) Reorganization and Integration of the Liquefied Petroleum Gas (LPG) Wholesale and Retail
Businesses
On October 1, 2017, the Company and OSAKA GAS established a joint venture company with eachcompany owing a 50% stake. The joint venture was formed through an exchange of shares between
former OSAKA GAS subsidiary NISSHO PETROLEUM GAS CORPORATION (hereinafter “NisshoLP”), which was designated as the wholly owning parent company for share exchange, and three former
subsidiaries of the Company – ITOCHU ENEX HOME-LIFE KANTO CO., LTD. (hereinafter“HOME-LIFE KANTO”), ITOCHU ENEX HOME-LIFE CHUBU CO., LTD. (hereinafter “HOMELIFE CHUBU”), and ITOCHU ENEX HOME-LIFE KANSAI CO., LTD. (hereinafter “HOME-LIFE
KANSAI”), and one former subsidiary of OSAKA GAS – Osaka Gas LPG Co., Ltd., which were
designated as the wholly owned subsidiary companies for share exchange. The merged company,
Nissho LP, was renamed “ENEARC” on the same day.
In addition, as part of the reorganization and integration, effective the same day the Company acquired
all Nissho LP-owned shares in Nissho Propane Sekiyu Co., Ltd. (hereinafter “Nissho Propane”), Ehime
Nissho Propane Co., Ltd. (hereinafter “Ehime Nissho”) and Kochi Nissho Propane Corporation(hereinafter “Kochi Nissho”), making them subsidiaries of the Company.
The Company has determined that ENEARC meets the conditions for a jointly controlled entity. As
such, the company is treated as an equity-method affiliate for accounting purposes.
As a result of the share exchange used to establish ENEARC, the Company has forfeited management
control over HOME-LIFE KANTO, HOME-LIFE CHUBU and HOME-LIFE KANSAI. This has
resulted in a gain of ¥2,326 million (including a gain of ¥1,163 million from a fair value remeasurementof the Company’s remaining stakes in the three companies as of the date management control wasforfeited), which has been recognized as “gains on business reorganization and others.”
Other income and expenses associated with the business reorganization are shown below.
Selling, general and administrative
expenses(94)

Share of profit (loss) of investments
accounted for by the equity method(704)

Gains on business reorganizationand others

2,326

Income tax expense

(106)

Total

1,422

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