Idemitsu Kosan : Announcement on Revisions to Consolidated Earnings Forecasts for the Fiscal Year Ending March 2020（163KB）

April 21, 2020

Press Release

Idemitsu Kosan Co.,Ltd.

Announcement on Revisions to Consolidated Earnings Forecasts

for the Fiscal Year Ending March 2020

Idemitsu Kosan Co.,Ltd. (hereinafter, "we" or the "Idemitsu") hereby announces that it has revised its consolidated earnings forecasts for the fiscal year ending March 31, 2020, previously announced on November 14, 2019, in light of recent operating performance and other factors, as follows:

1. Revisions to Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2020 (April 1, 2019- March 31, 2020)

		Operating		Ordinary		Net Income
	Net Sales			Attributable to		Net Income
	Income		Income
	(JPY			Owners of the		per Share
	(JPY		(JPY
	millions)			Parent (JPY		(JPY)
	millions)		millions)
				millions)
Previous Forecast (A)	6,100,000	165,000		150,000		100,000		332.71
Current Forecast (B)	6,000,000	(5,000)		(15,000)		(25,000)		(83.18)
Change (B-A)	(100,000)	(170,000)		(165,000)		(125,000)		(415.89)
Change (%)	(1.6%)
(For Reference)	4,425,144	179,319		169,121		81,450		401.63
Previous FY Results (FY 3/2019)

Note) We have completed a share repurchase of 4,060,800 shares up to January 24, 2020. All repurchased shares cancelled on March 31,2020. This cancellation is reflected in the average number of shares for the purposes of calculating the net income per share figure in the consolidated earnings forecast for the fiscal year ending March 2020.

2. Reasons for the Revisions in Earnings Forecasts
We have revised our net sales forecast by 100 billion yen, to 6 trillion yen, mainly as a result of the sudden
economic downturn due to widespread COVID-19 infection and a sharp decline in crude oil prices
following the breakdown of talks among oil-producing countries aimed at reducing oil production. Our
operating income forecast has been revised downward by 170 billion yen relative to the previously
announced forecast, to a loss of 5 billion yen, mainly due to increased inventory losses in the petroleum
segment and time lag effects from the sharp decline in crude oil prices (110 billion yen negative impact) as
well as an expected decrease in petrochemical product margins. As a result, our forecast for net income
attributable to owners of the parent has been revised downward by 125 billion yen relative to the previously
announced forecast, to a loss of 25 billion yen.
(Segment Information)		(Units: JPY billions)
		Previous Forecast	Current Forecast	Change
	Petroleum	31.0	(110.0)	(141.0)
	(inventory impact)	(28.0)	(90.0)	(62.0)
	(Excluding inventory impact)	59.0	(20.0)	(79.0)
	Basic Chemicals	45.0	11.0	(34.0)
	Functional Materials	31.0	31.0	0
	Power and Renewable Energy	(4.0)	(4.0)	0
	Resources	42.0	42.0	0
	(Oil Exploration and Production)	14.0	18.0	4.0
	(Coal)	28.0	24.0	(4.0)
	Others/Reconciliation	(5.0)	0	5.0
	Total	140.0	(30.0)	(170.0)

Note) Segment income (Total of operating income and equity earnings (losses) of affiliates)

3. Dividend Forecast

The fiscal year-end dividend forecasts remain unchanged at ¥80/share (total annual dividend forecast: ¥160/share).

• The above earnings forecasts are based on information available as of the announcement date of this document. Actual results may differ from the forecasted figures due to various subsequent events.