This document is an English translation of financial results report released on April 27, 2018 and written initially in Japanese.
The Japanese original should be considered as the primary version.

April 27, 2018

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2018
<under IFRSs>
Company name:
Listing:
Stock code:
URL:
Representative:
Contact:

Itochu Enex Co., Ltd.
Tokyo Stock Exchange, 1st Section
8133
https://www.itcenex.com/english/
Kenji Okada, Representative Director, President and CEO
Keisuke Hioki, General Manager, Finance & General Accounting Department
Tel: +81-3-6327-8010

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary results briefing material on financial results:
Holding of quarterly financial results presentation meeting:June 20, 2018
June 21, 2018
June 20, 2018
None
Yes (for institutional
investors and analysts)(Millions of yen with fractional amounts rounded, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended March 31, 2018(from April 1, 2017 to March 31, 2018)(Percentages indicate year-on-year changes.)(1) Consolidated operating results

Fiscal year ended
March 31, 2018
March 31, 2017

Net profit
attributable to
Itochu Enex’s
shareholders

Comprehensive
income%Millionsof yen%Millionsof yen%13,224

3.8

11,025

6.0

13,7293.0

12,74542.2

10,40539.3

13,327

92.4

Total tradingtransactions

Profit fromoperatingactivities

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen1,156,344

12.4

17,153(12.8)

19,169(0.9)

1,028,939(4.0)

19,67820.1

19,34428.9

Basic earnings per
share attributable
to Itochu Enex’s
shareholders

Profit before tax

Diluted earnings
per share
attributable to
Itochu Enex’s
shareholders

Net profit

Return on Equity
obtained as the net
profit attributable
to Itochu Enex’s
shareholders tototal shareholders’equity%Yen
Yen
Fiscal year ended
March 31, 2018
97.63
–
9.8
March 31, 2017
92.09
–
10.0
Reference: Share of profit (loss) of investments accounted for using equity method
493 million yen
For the fiscal year ended March 31, 2018:
500 million yen
For the fiscal year ended March 31, 2017:

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

%

%

5.3
6.0

1.5
1.9

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 ofMarch 31, 2018
March 31, 2017

Ratio ofshareholders’equity to total
assetsTotal shareholders’equityTotal equity

Millions of yen

Millions of yen

Millions of yen

382,621344,603

137,066
127,477

116,104
108,511

Shareholders’equity per share
%

Yen

30.3
31.5

1,028.57
960.37(3) Consolidated cash flows
Net cash flows from(used in) operating
activities
Fiscal year ended
March 31, 2018
March 31, 2017

Net cash flows from(used in) investing
activities

Net cash flows from(used in) financing
activities

Cash and cash
equivalents at end of
the period

Millions of yen

Millions of yen

Millions of yen

24,23917,831(18,458)(14,712)(5,850)(1,195)

Millions of yen

22,57322,727

2. Cash dividends
Annual cash dividends per shareFirst
quarterend
Fiscal year ended
March 31, 2017
March 31, 2018
Fiscal year ending
March 31, 2019
(Forecast)

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

Total cash
dividends(Total)Secondquarterend

Third
quarterend

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

13.50
16.00

–
–

18.50
24.00

32.00
40.00

3,616
4,520

34.8
41.0

3.5
4.0

–

20.00

–

20.00

40.00

Fiscalyear-end

Total

40.0

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2019(from April 1, 2018 to March 31, 2019)

Total tradingtransactions
Millions of yen

Six months ending
September 30, 2018
Fiscal year ending
March 31, 2019–
1,250,000

Profit from operating
activities% Millions of yen

–
8.1

–
18,700(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

–
9.0

–
18,500% Millions of yen

–
(3.5)

–
11,300

%

Yen

–

–

2.5

100.11

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

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

None
None
None

(3) Number of issued shares (common stock)a. Total number of issued shares at end of period (including treasury stock)
As of March 31, 2018

116,881,106 shares

As of March 31, 2017

116,881,106 sharesb. Number of treasury stock at end of period
As of March 31, 2018

4,002,135 shares

As of March 31, 2017

3,892,374 sharesc. Average number of outstanding shares during period
Fiscal year ended March 31, 2018112,921,238 sharesFiscal year ended March 31, 2017112,989,021 shares* Note on financial results
Total trading transactions were more than the results for the previous fiscal year due mainly to sales prices
for petroleum products being higher than predicted after the effect of the steep rise in crude oil prices
continuing from the previous fiscal year.
* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special notes
The forecasts and other forward-looking statements in this report are based on information currently
available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual
business and other results may significantly differ from these forecasts due to various factors.
Please refer to “1. Overview of Operating Results and Others, (1) Overview of Operating Results for the
Fiscal Year Ended March 31, 2017” on page 2 of the attached materials for matters relating to earnings
forecasts.

Contents of Attached Materials
1. Overview of Operating Results and Others .............................................................................................. 2(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2018 .................................... 2(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2018 .................................... 5(3) Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2017 and Ending
March 31, 2018 ...................................................................................................................................... 6
2. Basic concepts underlying selection of accounting standards ................................................................. 6
3. Consolidated Financial Statements ............................................................................................................ 7(1) Consolidated Statement of Financial Position .................................................................................... 7(2) Consolidated Statement of Comprehensive Income .......................................................................... 9(3) Consolidated Statement of Changes in Equity ................................................................................. 11(4) Consolidated Statement of Cash Flows ............................................................................................. 12(5) Notes to Consolidated Financial Statements .................................................................................... 14
Segment Information .......................................................................................................................... 14
Reorganization and Integration of the Liquefied Petroleum Gas (LPG) Wholesale and Retail
Businesses ............................................................................................................................................ 17
Earnings per Share ............................................................................................................................. 18
Significant Events after the Reporting Period ................................................................................. 18-1-

1. Overview of Operating Results and Others(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2018
1) Results of operations
During the fiscal year ended March 31, 2018, Japan’s economy maintained a moderate recovery trend,
due to export-led economic expansion supported by a strong global economy and improvements in thecorporate earnings and employment environments, etc. However, the outlook for the economy remained
uncertain due to factors such as geopolitical risks in the Far East and the situation in the Middle East, as
well as the trend of US trade policy and unstable domestic politics.
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 ¥744,767 million (up 7.2% year on year), profit fromoperating activities was ¥17,153 million (down 12.8% year on year), and net profit attributable to
Itochu Enex’s shareholders was ¥11,025 million (up 6.0% year on year).
2) Results of operations by segment<Power & Gas Business Group>
Home-Life Division
In the Home-Life Division during the fiscal year ended March 31, 2018, 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 theumbrella of the newly established company, and the Itochu Enex Group acquired shares in three Osaka
Gas Group sales companies in Hokkaido and two prefectures in Shikoku. As a result, the number ofcustomers under direct LP gas supply contracts increased to approximately 546,000.
Regarding sales of electricity for households, the division promoted the expansion of the customer baseby focusing mainly on sales of combined LP gas and electricity supply packages. As a result, as ofMarch 31, 2018, the number of supply contracts increased by around 12,000 for a total of
approximately 54,000.
In overseas businesses, the sales network and the customer base are growing strongly in our industrial
gas sales business in Indonesia (PT. ITC ENEX INDONESIA) and at our LP gas sales business in thePhilippines (Isla Petroleum & Gas Corporation). In the future, we will continue to expand our overseas
businesses using know-how developed in Japan.
As a result of these activities, revenue was ¥93,592 million (up 8.2% year on year), and, due to impacts
from the reorganization and integration with the OSAKA GAS Group, profit from operating activitieswas ¥3,278 million (down 32.1% year on year) and net profit attributable to Itochu Enex’s shareholders-2-was ¥3,958 million (up 40.2% year on year).
Power & Utility Division
In the Power & Utility Division during the fiscal year ended March 31, 2018, electricity sales volume
and profits in the electricity sales field of the electric power business increased from the previous fiscal
year, led by the Company and Oji-Itochu Enex power retailing Co., Ltd., reflecting growth in electricity
sales to business users and households and closer cooperation for capabilities in electricity supply anddemand operations, in addition to the diversification strategy of power source supplies, althoughmargins compressed following the steep rise in wholesale power market prices due to a harsh winterand other factors. In this field, ENEX LIFE SERVICE CO., LTD. will lead efforts to form allianceswith companies that have strong customer bases in local areas and companies in other sectors, in orderto further promote investigations of new value proposals for households and small companies.
Meanwhile, in the power generation field, total power generation increased from the previous fiscal
year, due to the start of operations at a new thermal power plant in October 2017, but profit decreased
year on year due to factors including the nonrecurrence of a gain on sales as a result of the sale of wind
power generation facilities for the purpose of replacing business assets, which was recognized in theprevious year. In this field, we aim to ensure stable electricity supplies and reduce environmental
impacts by enhancing our portfolio of power sources and investing in renewable energy power
generation facilities.
In the heat supply business*1, demand for heat varied due to fluctuations in average temperatures during
the fiscal year, but overall demand for heat increased year on year due to the impact of GINZA SIX*2,
to which supplies started in April 2017. In addition, the division will continue to develop acomprehensive energy services business to satisfy the increasingly diverse needs of customers.
Initiatives include the establishment of The Reliance Energy Okinawa, Incorporated in December 2017as a joint venture of The Okinawa Electric Power Company, Incorporated, OSAKA GAS, and Tokyo
Toshi Service CO., LTD., one of our group companies, to provide heat supply and other energy services
in the Okinawa area.
As a result of these activities, revenue was ¥74,541 million (up 18.6% year on year), profit fromoperating activities was ¥4,626 million (down 30.3% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥2,210 million (down 35.1% 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 during the fiscal year ended March 31, 2018, both sales volume
and profits increased from the previous fiscal year, despite an operating environment characterized by acontinued decline in demand for fuel in the domestic market.
Effective from this fiscal year, the Car-Life Stations (CS)*3-related business, industrial fuel business,
AdBlue*4 business, business user electricity supply business, and other operations were integrated to
newly form the Life Energy & Logistics Division, which comprehensively proposes diverse products
and service solutions beyond the conventional framework by business, in order to satisfy the needs of
local customers in each area.
In the Industrial Energy sales business, we offer new value by promoting proposals for new products
such as sales of GTL*5 fuel, which is made using natural gas as a raw material, in addition toconventional industrial fuels.
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 and-3-

used a shared loyalty points system to exchange customers with companies in other sectors. The
number of Car-Life Stations in the Itochu Enex Group during the fiscal year ended March 31, 2018, was
1,812, marking a net decrease of 76 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 to the same
period a year earlier due to the impacts of improper conduct in final inspections for vehicles by Nissan
Motor Co., Ltd., which came to light in September 2017. However, unit sales in the fourth quarterrecovered and exceeded unit sales in the same period a year earlier due to the introduction of new car
models. Combined with strong sales in the first half of the fiscal year, total unit sales for the full year
exceeded that in the previous year.
As a result of these activities, revenue was ¥488,399 million (up 1.8% year on year), profit fromoperating activities was ¥8,011 million (up 38.9% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥4,070 million (up 58.3% 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) contained inexhaust 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 DivisionDuring the fiscal year ended March 31, 2018, the Industrial Energy & Logistics Division was formed asa new division as a result of 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 fuelsales business, petroleum product trading business and the tank terminal business. Leveraging thehighly 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 stableearnings 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 the Itochu
Enex Group’s thermal power plants, KANOU FA CO., LTD. started full-scale operations in November
2017 and has been promoting business expansion. Moreover, the slop and oil recycling business, which
recycles and sells waste oil recovered from ships, is building a track record and is promoting expansionof the business. The division will also actively develop and explore other new initiatives andinvestment projects.
As a result of these activities, revenue was ¥88,235 million (up 33.3% year on year), profit fromoperating activities was ¥1,804 million (down 22.5% year on year), and net profit attributable to Itochu
Enex’s shareholders was ¥1,253 million (down 24.0% 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 and otherapplications.

3) Forecasts of consolidated financial results for the fiscal year ending March 31, 2019
In the forecast for consolidated financial results for the fiscal year ending March 31, 2019, we project-4-¥1,250,000 million in total trading transactions, up 8.1% year on year, ¥18,700 million in profit fromoperating activities, up 9.0% year on year, ¥18,500 million in profit before tax, down 3.5% year on year,and ¥11,300 million in net profit attributable to Itochu Enex’s shareholders, up 2.5% year on year.
Basic earnings per share attributable to Itochu Enex’s shareholders are projected at ¥100.11.
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2018
1) Analysis of assets, liabilities, equity and cash flows
Assets, liabilities and equity
Total assets amounted to ¥382,621 million as of March 31, 2018, an increase of ¥38,018 million fromMarch 31, 2017, mainly due to an increase in trade receivables. Total liabilities amounted to ¥245,555
million, an increase of ¥28,429 million from March 31, 2017, mainly due to an increase in trade payables.
Total equity totaled ¥137,066 million, an increase of ¥9,589 million from March 31, 2017, due to factors
including increased net profit attributable to Itochu Enex’s shareholders and decreased payment of cash
dividends, and the like.
We consequently ended the fiscal year with a ratio of shareholders’ equity to total assets of 30.3%.
Cash flows
Cash and cash equivalents (net cash) totaled ¥22,573 million as of March 31, 2017, down ¥154 million
from March 31, 2017.
Cash flows from operating activities
Operating activities earned net cash of ¥24,239 million. This was derived mainly from factors including
profit before tax of ¥19,169 million, depreciation and amortization of ¥10,824 million and income taxes
paid of ¥7,167 million.
Cash flows from investing activities
Investing activities used net cash of ¥18,458 million. Major items included payments for purchase ofproperty, plant and equipment and investment property of ¥14,432 million, proceeds from sales ofinvestment of ¥5,411 million and increase in deposits paid of ¥7,000 million.
Cash flows from financing activities
Financing activities used net cash of ¥5,850 million. Major items included expenditures due to a decrease
in interest-bearing debt of ¥1,292 million and cash dividends paid of ¥4,513 million.
2) Cash flow indicators
Fiscal year ended March 31,
Ratio of shareholders’ equity to total assets (%)
Ratio of shareholders’ equity to total assets at market
value (%)
Ratio of cash flow to interest-bearing debt (years)
Interest-coverage ratio (times)

2016
33.1

2017
31.5

2018
30.3

33.6

30.2

29.5

1.2
33.5

2.3
19.2

1.8
27.8

Ratio of shareholders’ equity to total assets: Total shareholders’ equity / Total assets
Ratio of shareholders’ equity to total assets at market value: Market capitalization / Total assets
Ratio of cash flow to interest-bearing debt: Interest-bearing debt / Cash flow
Interest-coverage ratio: Cash flow / Interest expense(Note 1.) All of the above ratios were calculated using consolidated financial statement data.

-5-

(Note 2.) Market capitalization was calculated by multiplying the fiscal-year-end closing share price by
the number of shares outstanding at fiscal year-end (net of treasury stock).
(Note 3.) “Cash flow” is “Cash provided by (used in) operating activities” on the Consolidated
Statement of Cash Flows.
(Note 4.) Interest-bearing debt is all debt, of the debt carried on the Consolidated Statement of
Financial Position, on which interest is payable.
(3) Profit Distribution Policy and Dividends for the Fiscal Years Ended March 31, 2017 and Ending
March 31, 2018
In terms of shareholder returns, we aim to maintain a consolidated dividend payout ratio of at least 30% in
accord with our policy of paying stable dividends on an ongoing basis while maintaining sustained
business growth.
For the fiscal year ended March 31, 2018, we plan to pay a year-end dividend of ¥24 per share. For the
fiscal year ending March 31, 2019, we plan to pay annual dividends of ¥40 per share (including an interim
dividend of ¥20 per share).
With respect to internally retained funds, our basic policy is to use such funds to invest in our business tostrengthen our operating foundation and further increase earnings.

2. Basic concepts underlying selection of accounting standards
The Itochu Enex Group adopted IFRS (International Financing Reporting Standards) from the fiscal year
ended March 2014, in order to improve international comparability and the convenience of financial
information in capital markets.

-6-3. Consolidated Financial Statements(1) 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-7-(Millions of yen)
As ofMarch 31, 2018

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

22,573
119,541
38,86028,3801,690
1,725

178,127

212,769

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

26,145
3,406
11,40085,326
10,166692
20,79810,502
1,417

166,476

169,852

344,603382,621

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 ofMarch 31, 2018

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

12,432
127,4458,539
3,650
10,583
12,280143,751

174,929

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

30,27323,335
9,820
2,185
4,757
256

Total non-current liabilities

73,37570,626

Total liabilities

217,126

245,555

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

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

19,87818,89280,352(1,145)(1,873)

Total shareholders’ equity

108,511116,104

Non-controlling interests
Total equity
Total liabilities and equity-8-

18,966

20,962

127,477

137,066

344,603382,621

(2) Consolidated Statement of Comprehensive Income
Fiscal year ended
March 31, 2017

(Millions of yen)
Fiscal year ended
March 31, 2018

Revenue
Cost of sales

695,060(601,456)

744,767(655,945)

Gross profit

93,60488,822Other expense
Selling, general and administrative expenses
Loss from tangible assets, intangible assets and goodwill
Other – net(74,697)
(982)
1,753

(70,931)(1,544)806

Total other expense(73,926)(71,669)

Profit from operating activities

19,67817,153Financial income and costs
Interest income
Dividends received
Interest expense
Other financial income and costs – net

89
246
(966)
(203)

92
296
(950)
(241)

Total financial income and costs

(834)

(803)

500

493

–

2,326

19,344

19,169(6,599)(5,945)

Net profit

12,745

13,224

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

10,4052,340

11,025
2,199

12,745

13,224

Share of profit (loss) of investments accounted for by the equity
methodGains on business reorganization and others
Profit before tax
Income tax expense

Total

-9-

Fiscal year ended
March 31, 2017
Other comprehensive income (net of tax effect)
Items that will not be transferred to profit or loss
FVTOCI financial assets
Remeasurement of net defined benefit liability
Other comprehensive income in associates accounted for by theequity method
Items that may be transferred to profit or loss
Exchange differences on translating foreign operations
Cash flow hedges
Other comprehensive income in associates accounted for by theequity method(Millions of yen)
Fiscal year ended
March 31, 2018

78
206

892
105

0

(9)

(37)
111

(38)
74

224

(519)

582

505

Comprehensive income

13,327

13,729Comprehensive income attributable to:Comprehensive income attributable to Itochu Enex’s shareholders
Comprehensive income attributable to non-controlling interests

10,866
2,461

11,4602,269

13,327

13,729Total other comprehensive income (net of tax effect)

Total

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

92.09–

1,028,939

97.63–(Millions of yen)
1,156,344

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”).

- 10 -

(3) Consolidated Statement of Changes in Equity
Fiscal year ended
March 31, 2017

(Millions of yen)
Fiscal year ended
March 31, 2018

EquityCommon stock
Balance at the beginning of the period

19,87819,878

Balance at the end of the period

19,87819,87818,740–18,740152

18,74018,892

66,024
10,405(248)(2,881)73,30011,025(75)(3,898)73,30080,352(2,364)(1,655)461

435

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- 11 -

248

75(1,655)(1,145)(1,752)(0)(1,752)(121)(1,752)(1,873)

108,511116,104

16,636
2,340

18,966
2,199

120

69

(345)

(615)

215

343

18,966

20,962

127,477

137,066(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2017
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss from tangible assets, intangible assets and goodwill
Financial income
Share of loss (profit) of investments accounted for by the equity
methodGains on business reorganization and others
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) 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
Proceeds from sales 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- 12 -

Fiscal year ended
March 31, 2018

19,344
10,856982
834

19,16910,824
1,544
803

(500)

(493)

–
(22,938)(1,337)
21,158(4,629)510(927)(5,522)(2,326)(25,998)(1,964)
26,284
3,699
737
(873)
(7,167)

17,831

24,239(2,649)
(30)
1,472
(645)
3,001
–
(1,661)
1,710(5,972)(256)
5,411(3,751)
–
(598)
(444)
5,675

(8,436)(11,887)

2,810

2,536

(1,622)169(9,000)169(2,545)136(7,000)237(14,712)(18,458)(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Cash flows from financing activities
Proceeds from bonds and borrowings
Repayments of bonds and borrowings
Net decrease in short-term borrowings
Proceeds from share issuance to non-controlling interests
Cash dividends paid to Itochu Enex’s shareholders
Cash dividends paid to non-controlling interests
Purchase of treasury stock
Other – net

7,500(3,858)(1,743)132(2,881)
(345)
–
(0)

–
(8,615)
7,323
76(3,898)
(615)
(121)
(0)

Net cash flows used in financing activities(1,195)(5,850)Net increase in cash and cash equivalents

1,924

(69)

Cash and cash equivalents at the beginning the period

20,82422,727(21)(85)

22,727

22,573

Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period- 13 -

(5) Notes to Consolidated Financial Statements
Segment Informationi) Outline of Reportable Segments
The reportable segments of the Group are components of the Group whose separate financial
information is available. These segments are periodically evaluated by the Board of Directors indeciding how to allocate management resources and in assessing performance.
The Group is organized into divisions under two business groups, consolidating related businesses.
Each division plans strategies for each category of target customers and markets and develops businessactivities. The Group has four reportable segments that correspond to the divisions, namely the “HomeLife Division,” “Power & Utility Division,” “Life Energy & Logistics Division,” and “Industrial
Energy & Logistics Division.”
The Home-Life Division is engaged in the sale of LP gas, town gas (Nakatsu City, Oita Prefecture),high-pressure gas, electricity, kerosene, equipment (combustion, kitchen, air conditioning, otherhousehold equipment, etc.), smart energy equipment (photovoltaic power generation systems,
ENEFARM residential fuel cells), and ENE-POWABO L residential lithium-ion electricity storage
systems, as well as in the remodeling and a pressure resistance inspection business for gas containers.
The Power & Utility Division is engaged in the sale of electricity (coal-fired, natural gas-fired, wind,hydropower, photovoltaic power) and steam, as well as in providing district heating services,comprehensive energy services, electricity/heat supply services, and electric power supply/demand
management services.
The Life Energy & Logistics Division is engaged in the sale of gasoline, kerosene, diesel oil, fuel oil,
LNG, coal, high-grade urea solution “AdBlue,” automotive lubricants, and automobiles and automobile
products, and in providing motor-vehicle inspection and auto maintenance, and car rental systems, aswell as in development and promotion of global businesses.
The Industrial Energy & Logistics Division is engaged in the sale of industrial energy and materials(gasoline, kerosene, diesel oil, fuel oil), asphalt, marine fuel, and lubricating oil, as well as in theimport/export and domestic supply/demand adjustment trading of petroleum products, provision oflogistics functions for oil storage facilities, etc., and the sale of slop and recycled oil.
In the fiscal year ended March 31, 2018, the Car-Life Division and the sale of industrial fuels andmaterials and other operations in the Energy Innovation Division were integrated to form the Life
Energy & Logistics Division, while the Energy Innovation Division was reorganized into the Industrial
Energy & Logistics Division. As a result, effective from the first quarter ended June 30, 2017, theCompany reclassified its reportable segments.
Due to the change in segments, segment information for the previous fiscal year has been adjusted
based on the new segment classifications used for the fiscal year ended March 31, 2018.

- 14 -

ii) Information on Reportable Segments
Fiscal year ended March 31, 2017
(Millions of yen)
Reportable segment
Home-Life

Power &
Utility

Life Energy &Logistics

Industrial
Energy &Logistics

86,48462,827479,568

66,181

695,060–

695,060

Intersegment revenue

68

144

1,614

192

2,018

(2,018)–

Total revenue

86,552

62,971

481,182

66,373

697,078(2,018)695,060

Gross profit

27,446

9,259

52,785

4,114

93,604–

93,604

Selling, general andadministrative expenses(23,385)(3,424)(46,213)(1,782)(74,804)

107(74,697)

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

526

(253)

(1,238)

(16)

(981)

(1)

(982)

Other profit (loss)

244

1,058

431

12

1,745

8

1,753

Profit from operating
activities

4,831

6,640

5,766

2,327

19,564114

19,678Financial income (costs)

67

(307)

(506)

0

(746)

(88)

(834)

Share of profit (loss) ofinvestments accounted forby the equity method

441

0

16

43

500

–

500

Gains on businessreorganization and others

–

–

–

–

–

–

–

Profit before tax

5,339

6,333

5,276

2,370

19,31826

19,344

Net profit attributable to
Itochu Enex’s shareholders

2,823

3,407

2,571

1,649

10,450(45)

10,405

Depreciation andamortization(3,475)(3,264)(3,207)(610)(10,556)(300)(10,856)

Impairment loss

(40)

–

(952)

–

(992)

–

(992)

Total assets

65,03370,700149,422

29,429314,584

30,019344,603

Investments accounted
for by the equity method

7,682

3,530

387

150

11,749–11,749

Capital expenditures

3,683

2,990

1,787

540

9,000

1,058

10,058

Total trading transactions

90,76865,654725,481

147,036

1,028,939–

1,028,939

Total

Adjustment

Consolidated

Revenue
Revenue from externalcustomers

Other items(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of negative ¥45 million to net profit attributable to Itochu Enex’s shareholders represents corporate
profit not allocated to reportable segments.
The adjustment of ¥30,019 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.

- 15 -

Fiscal year ended March 31, 2018
(Millions of yen)
Reportable segment
Home-Life

Power &
Utility

Life Energy &Logistics

Industrial
Energy &Logistics

Revenue from externalcustomers

93,59274,541

488,399

88,235

744,767–

744,767Intersegment revenue

336

5,899

158

472

6,865

(6,865)–

Total revenue

Total

Adjustment

Consolidated

Revenue

93,92880,440488,557

88,707

751,632(6,865)

744,767

Gross profit

24,458

8,891

51,916

3,557

88,822–

88,822

Selling, general andadministrative expenses(21,374)(4,328)(43,808)(1,850)(71,360)

429(70,931)

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

(75)

(288)

(680)

79

(964)

(580)

(1,544)

Other profit (loss)

269

351

583

18

1,221

(415)

806

Profit from operating
activities

3,278

4,626

8,011

1,804

17,719(566)

17,153Financial income (costs)

166

(316)

(518)

(25)

(693)

(110)

(803)

Share of profit (loss) ofinvestments accounted forby the equity method

540

(180)

92

41

493

–

493

Gains on businessreorganization and others

2,326

–

–

–

2,326

–

2,326

Profit before tax

6,310

4,130

7,585

1,820

19,845(676)

19,169Net profit attributable to
Itochu Enex’s shareholders

3,958

2,210

4,070

1,253

11,491(466)

11,025

Depreciation andamortization(3,246)(3,468)(3,006)(595)(10,315)(509)(10,824)

Impairment loss

(132)

(13)

(710)

–

(855)

(574)

(1,429)Total assets

66,08980,189165,406

44,352356,036

26,585

382,621

Investments accounted
for by the equity method

17,699

7,936

351

159

26,145–

26,145

Capital expenditures

4,182

6,014

2,290

1,252

13,738694

14,432

104,941

78,560799,001

173,842

1,156,344–

1,156,344

Other items

Total trading transactions(Note)

Intersegment transactions have been decided by reference to the market price.
The adjustment of negative ¥466 million to net profit attributable to Itochu Enex’s shareholders represents corporate
profit not allocated to reportable segments.
The adjustment of ¥26,585 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.

- 16 -

iii) Products and Services Information
This information is omitted because the classification of products and services is the same as theclassification of reportable segments.
iv) Geographic Information
This information is omitted because revenue from external customers in Japan accounts for a large
percentage of the revenue recorded in the consolidated statement of comprehensive income for the
fiscal years ended March 31, 2016 and 2017.
v) Major Customers Information
This information is omitted because there is no major external customer from which revenue accounts
for 10% or more of the revenue recorded in the consolidated statement of comprehensive income forthe fiscal years ended March 31, 2016 and 2017.
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 owning a 50% stake. The joint venture was formed through an exchange of shares between
the former OSAKA GAS subsidiary NISSHO PETROLEUM GAS CORPORATION (hereinafter“Nissho LP”), which was designated as the wholly owning parent company for the share exchange, andthree former subsidiaries of the Company – HOME-LIFE KANTO, HOME-LIFE CHUBU, andHOME-LIFE KANSAI, and one former subsidiary of OSAKA GAS – Osaka Gas LPG Co., Ltd., whichwere designated as the wholly owned subsidiary companies for the 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, Ehime Nissho Propane, and Kochi Nissho Propane,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
remeasurement of the Company’s remaining stakes in the three companies as of the date management
control was forfeited), which has been recognized as “gains on business reorganization and others.”
Other income and expenses associated with the business reorganization and integration are shown
below.

Fiscal year ended
March 31, 2018
Selling, general and administrative expenses
Share of profit (loss) of investments accounted for by the equity
methodGains on business reorganization and others
Income tax expense

2,326
(75)

Total

1,101

- 17 -

(302)
(848)

Earnings per Share
Basic earnings per share for the fiscal years ended March 31, 2017 and 2018, were calculated asfollows:
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

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

10,405

11,025Weighted-average number of ordinary shares outstanding(Thousands of shares)

112,989

112,921

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

92.09

97.63

(Note)

Diluted earnings per share attributable to Itochu Enex’s shareholders are not presented because there were no
dilutive potential shares.

Significant Events after the Reporting Period
No items to report- 18 -