Idemitsu Kosan : Presentation on Results for the 3rd Quarter FY2022

Presentation on Results

for the 3rd Quarter FY2022

February 14, 2023

Idemitsu Kosan Co.,Ltd.

Table of Contents

• Highlights
• Results for the 3Q FY2022
• Forecasts for FY2022
• Reference
• Progress in the mid-term management plan
• Financial results
• Volume
• Crude/product price and operation
• Business overview

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• Highlights

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Results for the 3Q FY2022

• Summary
• • Operating + equity income (segment income) increased by ¥26.5 billion year-on-year, as improvements in the resources business resulting from soaring coal prices partially offset decreased margins on non-core products such as naphtha and increased fuel costs in the petroleum business
  • Net income increased by ¥49.7 billion year-on-year due to extraordinary gains from asset sales, etc.

			[¥ billions]
	FY2021 3Q	FY2022 3Q	Change
Operating Income	297.3	323.8	+26.5
+ Equity Income
Inventory impact	163.1	138.5	(24.6)
Excluding inventory impact	134.2	185.4	+51.2
Net Income Attributable to	199.9	249.6	+49.7
Owners of the Parent
Excluding inventory impact	86.8	153.6	+66.8

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FY2022 Forecasts and Shareholder Returns

• Summary
• • While trends in the business environment remain unclear amid concerns of an economic slowdown due to global inflation on the one hand and expectations of recovery in demand due to relaxation of the zero-COVID policy in China on the other, forecasts were revised to reflect the recent drop in crude oil prices, the correction of

JPY depreciation, etc.			[¥ billions]
		11/8	Revised	Change
		Forecast	Forecast
	Operating Income	450.0	280.0	(170.0)
	+ Equity Income
	Inventory impact	120.0	30.0	(90.0)
	Excluding inventory impact	330.0	250.0	(80.0)
	Net Income Attributable to	325.0	220.0	(105.0)
	Owners of the Parent
	Excluding inventory impact	240.0	200.0	(40.0)

• Shareholder Returns
• • The acquisition of ¥60 billion treasury shares for 29 million shares (upper limit) will be executed from 2/15/2023 to 2/14/2024 pursuant to the shareholder returns policy set forth in the current medium-term plan. All treasury shares acquired will be cancelled
  • The cumulative 3-year return ratio from FY 2020-22 based on the current forecasts is expected to exceed 50%, through FY dividends of ¥120/share (no revision to the dividend forecast) and the acquisition of ¥60 billion treasury shares

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