ENEOS : Presentation - FY2020 2Q Financial Results

November 11, 2020 at 10:59 am EST

Security Code Tokyo 5020

November 11, 2020

FY2020 2Q Financial Results

Ota Katsuyuki	Representative Director, President
Tanaka Soichiro	Senior Vice President

Agenda

Highlights	2


Progress of Medium-Term Management Plan	4


Shareholder Return	9

Business Environment	10


Financial Results for FY2020 2Q	13

Forecast for FY2020 vs. Previous Forecast 20

Reference	26

Highlights

2Q2020 Results and FY2020 Forecast		Highlights
(operating income excl. inventory valuation)

	2Q20	2Q19		Actual	vs 2Q19
	170.2	→	125.9	-44.3 (JPY Billion)

Due to the impact of COVID-19 and other factors, results vs 2Q19 were -44.3 billion yen

・Impact of COVID-19

Decrease in petroleum product sales Low level of crude oil price

Decrease in production of Casernes Copper Mine ・Temporary loss due to restructuring of refineries

・Steady domestic petroleum product margins

・Sales increase of electronic materials due to increasing data communications demand

・Opex decrease

FY2020 Forecast	Forecast (May 2020)		Forecast (Nov. 2020)	vs Forecast (May 2020)
165.0	→	190.0	+25.0	(JPY Billion)

Assumptions for COVID-19Forecast (May 2020) : Assuming decrease in petroleum product sales in only the first half of the year

Forecast (Nov. 2020) : Assuming recent business environment continues until the end

Despite impacts of COVID-19, which were not assumed in the second half in the forecast announced in May, due to steady petroleum product margins,etc., the current forecast vs the May forecast is +25.0 billion yen

・Impact of COVID-19 in second half of the year ・Weak petrochemical margins

・Temporary loss due to restructuring of refineries

・Steady domestic petroleum product margins (in first half) ・Sales increase of electronic materials due to increasing

data communications demand ・Opex decrease

Progress of Medium-Term Management Plan

FY2020-FY2022【Management Indicators】

Progress according to plan expected

Progress of Medium-Term

Management Plan


		FY2020		FY2020		vs. Medium-Term
		Medium-Term
			Forecast		Management Plan
		Management Plan



Operating Income		165.0 billion yen		190.0 billion yen		＋25.0 billion yen
(excl. inventory valuation)


	140.0 billion yen
Free Cash Flow			140.0 billion yen		±0.0 billion yen


Net D/E		0.7x		0.7x		±0.0x


ＲＯＥ		2%		4％	+2%

Net Income	40.0 billion yen		90.0 billion yen		＋50.0 billion yen
(excl. inventory valuation)	(78.0 billion yen)		(90.0 billion yen)		(＋12.0 billion yen)

Progress of Medium-Term Management Plan

FY2020-FY2022【Business Strategy 1】

Progress of Medium-Term

Management Plan

Strengthening the Business Foundation

■Strenthen the effectiveness of governance

(Develop the management system to enable speedier decision making and strengthen monitoring by the Board of Directrors)

・Integrated the management of ENEOS Holdings, Inc. and ENEOS corporation and changed their trade names

■ Pursuit of digital transformation (DX)

(Increase the efficiency of base businesses and create innovative products and services)

・Established office of CDO for speedy, cross-functional execution of DX initiatives

June

July

Strengthening the Competitiveness of the Base Businesses

■ Transformation of the supply chain

・Terminated refinery functions of the Osaka refinery

・Made final agreement with PetroChina International (Japan) Co., Ltd. to continue collaboration at Chiba refinery as refinery for export

・Decided to terminate manufucturing function of Chita plant

■ Acquisition of Caserones copper mine

・Reached a basic agreement with Mitsui Mining & Smelting and Mitsui & Co., Ltd., joint investors in the Caserones Copper Mine, on the transfer of all their rights and and interests in the mine.

October

December

(scheduled)

October 2021

(scheduled)

November

Progress of Medium-Term Management Plan

FY2020-FY2022【 Business Strategy 2】

Progress of Medium-Term

Management Plan

Develop and Strengthen Growth Businesses

■【Next-generation Energy Supply and Community Services】
Expand customer base and build optimal protfolio of power generation sournces
・Completed nationwide expansion of ENEOS Denki	June
(excluding Okinawa prefecture and remote isands)

・Started commercial operation of Muroran biomass power plant	May
・Announced participation of wind power project offshore of Happo Town and Noshiro City	After 2024
in Akita prefecture	(scheduled)
・Started operation of mega solar power plant at Sakata, Shimonoseki and Fushiki	Start
	sequentially
・Started commercial operation of the city gas production and supply facilities	April
of Ogishima City Gas Supply

Create community development businesses in collaboration with local partners
・Working with Shizuoka prefecture, Higashimurayama city (Tokyo) and
Shintomi town (Miyazaki), promoting low-carbon,recycling-oriented and	Start
sustainable community development businesses by using local power	sequentially
generation and consumption energy
Build a new business model via alliances/collaboration
・Promoting collaboration with many companies:
Investment in Gore Street Energy Storage Fund; collaboration at constructing	Start
Drone station (SENSYN ROBOTICS), Algae biomass (CHITOSE GROUP) and
sequentially
Electric micro mobility (Luup); participation of JAPAN Hydrogen association

Transform our service station network into a platform for providing various services
create mobility services businesses
・Started laundry servies attached with Service Stations, "ENEOS Laundry"	September
・Started vertification of ENEOS car leasing businesses	September
		6
Copyright © ENEOS Holdings, Inc. All Rights Reserved.

Progress of Medium-Term Management Plan

FY2020-FY2022【 Business Strategy 3】

Progress of Medium-Term

Management Plan

Develop and Strengthen Growth Businesses

■【Petrochemicals】

Expand the scale of technologically superior products

・Started feasibility study on ENB expansion in Saudi Arabia

■【Materials】

Improve products for advanced functionally and higher added valued while establishing production capacity in accordance with growing demand

・Completed facility expansion to raise production capacity of rolled copper foil, high-functionality copper alloy strips, and sputtering targets for semiconductors

Develop products and marketing network in line with global trends

・Started selling ENEOS X series and Mobil ™ oil, new engine oils that conform to the latest international standards and have improved energy-saving features

■【Recycling】

April

June

July

Contribute to the formation of a recycling-oriented society by pursuing plastic waste and metal recycling using refineries and smelters, and LIB recycling

・Decided to establish logistics base for recycled raw materials in the Ozai West area,	December 2021
Oita port to strengthen the recycling business at Saganoseki Smelter & Refinery	(scheduled)

＊excluding Okinawa prefecture and remote islands

Progress of Medium-Term Management Plan

FY2020-FY2022【 Business Strategy 4】

Progress of Medium-Term

Management Plan

Implementing the measures focusing on growth businesses to achieve the Long-Term Vision and the Second Medium-Term Business Plan

Nationwide

・Nationwide expansion of ENEOS Denki ＊・Started ENEOS Laundry

・Started verification of ENEOS car leasing ・Collaborated with many companies etc.

Started commercial operation of Muroran biomass power plant

Decided to participate in wind power project in Akita prefecture

Started operation of mega solar power plants

at Sakata, Shimonoseki and Fushiki

Decided to establish logistics base for
recycled raw materials in Oita port
Completed expansion of facilities in


		Kurami and Isohara works
Promoting community development

businesses with Shizuoka,	Started commercial operation of the city
Higashimurayama city, Shintomi town	gas production and supply facilities in

Ogishima, Kawasaki

		Decided to make Chiba refinery as
		a refinery for export
Terminated refinery functions


of the Osaka refinery	Decided to terminate manufucutirng

	function of Chita Plant

Shareholder Return

The indication of shareholder return remains unchanged

Return Policy

Indication of shareholder return in Medium-Term Management Plan

Based on the understanding that return of profits to shareholders is a material management task, the ENEOS Group will redistribute profits by reflecting changes in medium-term consolidated business results and prospects as a basic policy, while striving to maintain stable dividends.




		First Medium-Term		Second Medium-Term
		Management Plan		Management Plan
【Total Return Ratio】	FY2017	FY2018	FY2019		FY2020	FY2021	FY2022

3-year cumulative

50% or more, excluding inventory	34%	33%	ー		3-year cumulative 50%or more,
valuation effects
	excluding inventory valuation






		FY2017	FY2018	FY2019		FY2020	FY2021	FY2022
【Dividends】
				No less than
Not less than current level	19 yen	21 yen	22 yen
	22 yen
		per share	per share	per share
			per share

Business Environment

Crude Oil, Copper (LME), FX

Business Environment

Dubai Crude Oil		Copper (LME)		Exchange Rate

$/bbl		¢/lb	2019	Yen/$
		2019	2019


		2020	2020		2020


60.0		300		115

40.0		270		110
20.0		240		105
0.0		210		100
	April	October
April	October	April	October

Compared to 2Q19, significantly decreased due to the impact of COVID- 19, but rebounded to around 40$/bbl with resumption of economic activities

Declined significantly due to COVID-19 at end of FY2019, however rebounded above pre-decline level due to supply concerns caused by COVID-19 in producing countries and strong demand in China

Anticipated resurgence of COVID-19 and extension of low interest rate in US, causing appreciation of the yen

Petroleum Products and Paraxylene Margins

Business Environment

Gasoline, Kerosene, Diesel Fuel

and Fuel Oil A Margins

yen/L
20
15	Annual
average

10
5
	Bar graph = Quarterly average
0
Apr. 2019	October	Apr. 2020	October

Paraxylene Margin

Paraxylene Margin (vs. Crude Oil)

$/tonParaxylene Margin (vs. Naphtha)

Annual Average Paraxylene Margin (vs. Crude Oil)

500
400	Annual
average
300
200
100
	Bar graph	=	Quarterly average of
	PX Margin (vs. Crude Oil)

0
Apr. 2019	October		Apr. 2020	October

Margin = Spot Price - All Japan Crude CIF (including petroleum tax and interest)

Fluctuated widely due to volatility in crude oil prices, but real margins (excluding time lag factors) remained steady

While supply has increased due to the start-up of new facilities and resumption of existing facilities in China, demand growth slowed down due to delays in the start- up of new PTA production facilities, and therefore margins remained at a low level

Financial Results for FY2020 1Q

Financial Results for 2Q20 vs 2Q19

(April 1 - September 30, 2020)

Overview of 1Q20 Financial Results vs 2Q19

Financial Results for 2Q20


		2Q19	2Q20		Changes
		（Actual）	（Actual）

■ Index


Crude Oil (Dubai)	($/B)	64	37	-27	-43%

Copper	(¢/lb)	270	269	-1	-0%

Exchange Rate	(/$)	109	107	-2	-2%

Profit and Loss Statement


Net Sales	(JPY billion)	5,063.1	3,362.3	-1,700.8	-34%

Operating Income	(JPY billion)	130.9	88.9	-42.0	-32%

Inventory Valuation	(JPY billion)	-39.3	-37.0	+2.3	-
Operating Income	(JPY billion)	170.2	125.9	-44.3	-26%
Excl. Inventory Valuation

Net Income	(JPY billion)	82.7	51.2	-31.5	-38%

Profit attributable to owners	(JPY billion)	71.0	36.4	-34.6	-49%
of the parent

Changes in Operating Income by Segment vs 2Q19

Financial Results for 2Q20


					2Q19			2Q20				Changes
(JPY billion)	（Actual）				（Actual）




Total Operating Income	130.9					88.9	-42.0	-32%
		Excl. Inventory valuation		170.2				125.9		-44.3	-26%

	Energy		49.2				20.1		-29.1	-59%
		Inventory Valuation		-38.1				-37.0		+1.1	-
		Excl. Inventory Valuation		87.3				57.1		-30.2	-35%
			Petroleum Products		41.7				46.2		+4.5	+11%
			Petrochemicals		3.0				-9.5		-12.5	-
S			Electric Power		4.6				10.2		+5.6	+122%
				38.0				10.2
e			Materials						-27.8	-73%
g	Oil and Natural Gas E&P		24.8				1.5		-23.3	-94%
m

e	Metals		35.2				36.9		+1.7	+5%
n		Inventory Valuation		-1.2				0.0		+1.2	-
t
	Excl. Inventory Valuation		36.4				36.9		+0.5	+1%
s
			Functional Matls, Thin Fin Matls		12.1				17.3		+5.2	+43%
			and others
			Mineral Resources		11.0				14.0		+3.0	+27%
			Smelting and Recycling		15.2				10.8		-4.4	-29%
			Non-allocated corporate expenses		-1.9				-5.2		-3.3	-
			and others
	Other		21.7				30.4		+8.7	+40%

Changes in Operating Income vs 2Q19 - Energy Segment -

Financial Results for 2Q20

2Q19

Operating Income

Excl. inventory valuation

(Actual)

(JPY Billion)

80.0

	Energy -30.2 (87.3 → 57.1)		2Q20
				Operating Income
Petroleum Products	Petrochemicals	Electric power	Materials	Excl. inventory valuation
+4.5 (41.7→ 46.2)	-12.5 (3.0→ -9.5)	+5.6 (4.6→ 10.2)	-27.8 (38.0→ 10.2)	(Actual)

Despite steady domestic petroleum product margins, decrease in sales volumeof petroleum products due to COVID-19and temporary loss due to restructuring of refineries caused profits to decrease

+4.5

+5.6

87.3

40.0

-12.5

Impact Amount（JPY billion）

Sales Volume	-41.8
Margins	+46.3 ＊

＊Incuding temporary loss

due to restructuring of refineries - 27.9 JPY billion

	-27.8

Impact Amount（JPY billion）

Sales Volume	-7.3
57.1
Margins	-5.2

0.0

Changes in Operating Income vs 2Q19 - Oil and Natural Gas E&P Segment -

Financial Results for 2Q20

2Q19		2Q20
Operating Income	Oil and Natural Gas E&P -23.3 (24.8 → 1.5)	Operating Income
(Actual)		(Actual)
(JPY Billion)
Profits decreased due mainly to falling resource prices

+15.5		Sales Volume (1,000 B/D)

	Sales volume	2Q19	2Q20
40.0				Total	93	121

				Oil	35	43
				Gas	58	78

	Crude oil price ($/B)

		1Q19	1Q20
20.0	Brent	66	38

	Dubai	64	37

24.8

Crude oil price

-28.0

0.0

1.5

Expense and other

-10.8

Changes in Operating Income vs 2Q19 - Metals Segment -

Financial Results for 2Q20

2Q19

Metals

+ 0.5 (36.4→ 36.9)

2Q20

Operating Income

Non-allocated

Operating Income

Excl. inventoryvaluation

Functional Matls, Thin Film Matls and others

Mineral Resources

Smelting & Recycling

corporate expenses

(Actual)

+5.2(12.1→17.3)

+3.0 (11.0→ 14.0)

-4.4 (15.2→ 10.8)

and others

-3.3(-1.9→-5.2)

(JPY Billion)

Despite increase in sales volume of electronic materials due to increase in data

communications, and increase in copper prices, profits remained at the same level

as 2Q19 due to decreased production at Caserones and deteriorating market for

sulfric acid

+3.5

+1.7

+3.0

Functional Matls and

Others

Thin Film Matls

40.0

-4.4

-3.3

Caserones production（thousand tons）

36.9

2Q19

2Q20

20.0

36.4

Copper price（¢/lb）

2Q19

2Q20

Average Copper Price

270

269

Price Range

-34 (294→260)

+82(218→300)

0.0

Consolidated Balance Sheets / Consolidated Cash Flows

Financial Results for 2Q20

Consolidated Balance Sheets

Consolidated Cash Flows

(JPY Billion)

Net interest bearing debt

is 1,816.3 billion yen

2Q20

FY2020

As of Mar. 31, 2020

As of Sep. 30, 2020

Forecast

Actual

(JPY billion)

（November 2020

）

Total：8,011.3

Total：7,763.7

Cash and cash						Lease liability	Lease liability
	Cash and cash				repayment	repayment
equivalents
				reclassified to	reclassified to
402.0		equivalents
				Op. CF	Op. CF
	381.0
			Operating income
	Interest		Interest	125.9	125.9	190.0
		(Excl. inventory valuation)
	bearing debt
	bearing debt
	2,300.8
		2,197.3	Depreciation and amortization	163.8	124.6	256.0

				Working capital and other	0.9	0.9	114.0
				Cash flows from operating activities	290.6	251.4	560.0
	Other debt	Other debt	（without the effect of non-business day）	290.6	251.4	420.0
Other assets	3,002.6
Other assets	2,891.0
7,609.3
	7,382.7

				Capital investment	-127.4	-127.4	-445.0
	396.9		396.8	Asset sales and other	-6.5	-6.5	25.0
	Total equity	Total equity	Cash flows from investing activities	-133.9	-133.9	-420.0
	attributable	to	attributable to

	owners of the	owners of the
	parent		parent	Free cash flows	156.7	117.5	140.0
	2,311.0		2,278.6

	Non-controlling interests	（without the effect of non-business day）	156.7	117.5	0.0

		As of March 31, 2020	As of Sep. 30, 2020
		(Actual)	(Actual)	Dividends and other	-88.9	-49.7
Equity ratio attributable to	28.8%	29.3%				Announced
owners of the parent	Net cash flows	67.8	67.8	in May


				（without the effect of non-business day）	67.8	67.8	140.0
Net D/E ratio	0.70	0.68
(capital total basis)

Forecast for FY2020 vs. Previous Forecast

(April 1, 2020 - March 31, 2021)

Key Factors ( October 2020 - March 2021)

Exchange Rate: 105Yen/$Crude Oil: 45$/BCooper Price(LME): 280¢/lb

Impact of COVID-19
- Impact assumed in both first and second half of the year

（Forecast announced in May only assumes first half of the year）

Investment plan kept unchanged from announcement in May

Overview of FY2020 Forecast (vs Previous Forecast in May)

Forecast for FY2020

FY2020

Changes

FY2020

FY2019

Forecast

Actual

(May 2020)

(Nov. 2020)

■ Index

Crude Oil (Dubai)

($/B)

＋11

＋37%

Copper

(¢/lb)

250

＋25

＋10%

275

266

Exchange Rate

(/$)

105

＋1

＋1%

106

109

Profit and Loss Statement


Net Sales	(JPY billion)	7,340.0	＋160.0	＋2%	7,500.0	10,011.8

Operating Income	(JPY billion)	110.0	＋90.0	＋82%	200.0	-113.1

Inventory Valuation	(JPY billion)	-55.0	＋65.0	-	10.0	-209.8
Operating Income	(JPY billion)	165.0	＋25.0	＋15%	190.0	96.7
Excl. Inventory Valuation

Net Income	(JPY billion)	60.0	＋55.0	＋92%	115.0	-171.5

Profit attributable to owners	(JPY billion)	40.0	＋50.0	＋125%	90.0	-187.9
of the parent

Changes in Operating Income by Segment vs 2Q19

Forecast for FY2020

					Assuming COVID-19 for							Assuming COVID-19 for both
					only first half of the year						first and second half of the year


						FY2020				Changes					FY2020
(JPY billion)		Forecast										Forecast

		FH		LH		Full Year
	(May 2020)							(Nov. 2020)


Total Operating Income		110.0		＋123.9	-33.9		＋90.0				200.0
			Excl. Inventory valuation		165.0		＋110.9	-85.9		＋25.0				190.0

		Energy		35.0		＋90.1	-40.1		＋50.0				85.0
			Inventory Valuation		-55.0		＋13.0		＋52.0	＋65.0				10.0
			Excl. Inventory Valuation		90.0		＋77.1	-92.1		-15.0				75.0
				Petroleum Products		40.0		＋79.2	-54.2		＋25.0				65.0
				Petrochemicals		20.0		-11.5	-21.5		-33.0				-13.0
S				Electric Power		5.0		＋6.2		＋1.8	＋8.0				13.0
					25.0										10.0
e				Materials			＋3.2	-18.2		-15.0
g		Oil and Natural Gas E&P		0.0		-0.5		＋5.5	＋5.0				5.0
m

e		Metals		29.0		＋22.9		＋2.1	＋25.0				54.0
n			Inventory Valuation		-		-	-		-				-
t
		Excl. Inventory Valuation		29.0		＋22.9		＋2.1	＋25.0				54.0
s
				Functional Matls, Thin Fin Matls		21.0		＋7.1	-1.1		＋6.0				27.0
				and others
				Mineral Resources		10.0		＋8.5	-0.5		＋8.0				18.0
				Smelting and Recycling		8.0		＋6.6		＋1.4	＋8.0				16.0
				Non-allocated corporate expenses		-10.0		＋0.7		＋2.3	＋3.0				-7.0
				and others
		Other		46.0		＋11.4	-1.4		＋10.0				56.0

Changes in Operating Income vs Forecast (May 2020) - Energy Segment -

Forecast for FY2020

Operating Income

Energy

+15.0 (90.0→ 75.0)

Operating Income

Excl. inventory valuation

Forecast

Petroleum Products

Petrochemicals

Electric power

Materials

Forecast

(May 2020)

+25.0 (40.0→ 65.0)

-33.0 (20.0→ -13.0)

+8.0 (5.0→ 13.0)

-15.0 (25.0→ 10.0)

(November 2020)

(JPY Billion)

Despite steady domestic petroleum product margins in the first half of the year,

decrease in sales volume due to COVID-19 and decline in petrochemical

margins in second half of the year caused profits to decrease

+25.0

Impact Amount（JPY billion）

120.0

Full Year

Sales Volume

-13.2

-4.2

-9.0

+8.0

Margins

-19.8

-7.3

-12.5

80.0

-33.0

-15.0

Impact Amount（JPY billion）

90.0

Full Year

Impact Amount（JPY billion）

75.0

40.0

Sales Volume

-22.8

＋2.5

-25.3

＊

Full Year

Margins

＋47.8

＋76.7

-28.9

-15.0

＋3.2

-18.2

＊Incuding temporary loss due to restructuring

of refineries

- 27.9 JPY billion

0.0

Changes in Operating Income vs Forecast (May 2020) - Oil and Natural Gas E&P Segment -

Forecast for FY2020

	Operating Income		Operating Income
	Forecast	Oil and Natural Gas E&P +5.0 (0.0 → 5.0)	Forecast
	(May 2020)		(November 2020l)
(JPY Billion)
	Higher resource prices caused profits to increase


			+9.3
	Sales Volume (1,000 B/D)	Crude oil price

5.0	Forecast	Forecast

	(May 2020)	(November 2020)	Expense and other
	127	124
	-0.1
Oil	49	44

Gas	78	80	5.0

0.0
0.0

Crude oil price ($/B)

	Forecast	Forecast
	(May 2020)	(November 2020)

Brent	33	42
Dubai	30	41

-5.0	Sales volume

-4.2

Changes in Operating Income vs Forecast (May 2020) - Metals Segment -

Forecast for FY2020

Operating Income

Metals

+ 25.0 (29.0→ 54.0)

Operating Income

Excl. inventoryvaluation

Non-allocated

Excl. inventoryvaluation

Forecast

Functional Matls, Thin Film Matls and others

Mineral Resources

Smelting & Recycling

corporate expenses

Forecast

(May 2020)

+6.0(21.0→27.0)

+8.0 (10.0→ 18.0)

+8.0 (8.0→ 16.0)

and others

(November 2020)

+3.0 (-10.0→-7.0)

(JPY Billion)

High resource prices and increase in sales volume of electronic materials with

growing data communication demand caused profits to increase

60.0

+8.0

+3.0

+7.0

+8.0

40.0

Functional Matls and

Thin Film Matls

Others

-1.0

Copper price（¢/lb）

54.0

Forecast

(May 2020)

(November 2020)

20.0

Average Copper Price

250

275

Price Range

＋32 (218→250)

＋62 (218→280)

29.0

Caserones production（thousand tons）

Forecast

(May 2020)

(November 2020)

161 131

0.0

Financial Results for FY2020 1Q

Reference

Major Topics (from April 2020 to November 2020)

Reference

Steady Implementation of the Second Medium-Term Management Plan

ENEOS Holdings / ENEOS

Apr. Started commercial operation of the city gas production and supply facilities of Ogishima City Gas Supply Co

May	Announced the Second Medium-Term Management Plan (FY2020-2022)
May	Started commercial operation of Muroran biomass power plant

Jun. Concluded an agreement with Higashimurayama city for community cooperation Jun. Participated in the Tokyo Bay Zero Emission Innovation Conference

Jun. Started collaboration with SENSYN ROBOTICS, Inc. to construct drone station

Jun. Started collaboration with CHITOSE BIO EVOLUTION PTE. LTD., to create a bio-based,low-carbon, sustainable society Jun. Decided to invest in Gore Street Energy Storage Fund

Jun. Launched a business capital alliance with Looop Inc Jun. Launched Sustainable Power Supply Fund

Jul. Concluded a basic agreement with Shizuoka Prefecture for the promotion of next-generation energy and community development in the Sodeshi area of Shimizu, Shizuoka City

Jul. Started collaboration with Luup Corporation to promote electric micro mobility in society Sep. Started vertification of ENEOS car leasing business

Sep. Announced participation of wind power project offshore of Happo Town and Noshiro City in Akita Prefecture Sep. Made final agreement for continuing collaboration at Chiba refinery with PetroChina International (Japan) Co., Ltd Sep. Started ENEOS Laundry, laundromats attached to service stations

Oct. Concluded an agreement with Shintomi town, Miyazaki prefecture for the development of a low-carbon,recycling-oriented, sustainable community

Oct. Joined preparatory committee for the establishment of the Japan Hydrogen Association Oct. Decided to terminate the manufacturing function at Chita plant

Oct. Started operation of 3 mega solar power plants

Nov. Started to consider collaboration business for biomass power plant with erex Co., Ltd., in Niigata

Major Topics (from April 2020 to November 2020)

Reference

Steady Implementation of the Second Medium-Term Management Plan

JX Nippon Oil & Gas Exploration

Jun. Nakajo Gas Field's coastal forest conservation efforts featured in "Annual Report on Forest and Forestry in Japan" (Forestry Agency)

Sep. Implemented forest conservation activities at JX Nakajo forest in Tainaishi, Niigata

Sep. Participated in the Ministry of the Environment's Japan Platform for Environmentally Sustainable Infrastructure Nov. Joined Geological Carbon Dioxide Storage Technology Research Association

Nov. Started research on digital oil technology with the University of Tokyo.

JX Nippon Mining & Metals

Jun. Completed expansion of facility for raising production capacity of rolled copper foil, high-functionality copper alloy strips and sputtering targets

Jun. Relocated the corporate headquarters as part of efforts to realize the JX Nippon Mining & Metals Corporation Group Long-Term Vision 2040

Jun. Started collaboration with Novel Crystal Technology in the power semiconductor device materials field Jul. Acquired shares of Osaka Alloying Works, Co., Ltd.

Jul. Held location announcement ceremony for logistics base for recycled raw materials in the Ozai West area, Oita port Sep. Started collaboration with Lotus Thermal Solution Inc. to promote practical implementation of Lotus Metals, porous metal

materials, for heat sink use

Nov. Agreement reached on acquisition of full rights and interests in the Caserones Copper Mine from Mitsui Mining & Smelting Co., Ltd. and Mitsui & Co., Ltd.

Key Factors

Reference

						FY2019					FY2020

				1Q		FH		Full Year		1Q	FH	Full Year


				Actual		Actual		Actual		Actual	Actual	Forecast
									(Nov.2020)

				110	109	109	108	107	106
All segments		Exchange rate [Yen/$]

		Crude oil price (Dubai) [$/bbl]	67	64	60	31	37	41
Energy


Oil and		Sales volume (Crude oil equivalent) [1,000 bbl/day]	99	93	106	120	121	124
Natural Gas		Crude oil price (Brent) [$/bbl]	69	66	62	33	38	42
E&P

				277	270	266	242	269	275
		Copper price (LME) FY [¢/lb]
Metals		Equity entitled copper mine production * [1,000 tons/period or year]	54	109	213	51	94	190
	PPC copper cathode sales [1,000 tons/period or year]	155	318	630	144	314	633

		Precision rolled products sales [1,000 tons/month]	3.0	3.1	3.3	3.3	3.3	3.4

*
	Companies	Companies

		closing in Dec.	closing in Mar.
	1Q	Jan. - Mar.	Apr. - Jun.

	FH	Jan. - Jun.	Apr. - Sep.

	Full	Jan. - Dec.	Apr. - Mar.

Sensitivity Analysis

Reference

Index (After Oct. 2020)

Exchange Rate: 105 Yen/$

Crude Oil: 45

$/bbl

Copper Price (LME) : 280 ¢/lb

Sensitivity analysis (After Oct. 2020)

					(JPY Billion)
Index		Change		Segment		Impact
				Energy (In-house fuel costs rise, margin improvement in

				petrochemicals, exchange gain)	+1.0
		5 Yen/$		Oil and Natural Gas E&P	0.0
Exchange Rate			Metals (Margin improvement, exchange gain)	+2.5
	yen depreciation
			Subtotal	+3.5

				Inventory valuation	+16.5
				Total	+20.0
				Energy	-2.0

Crude Oil				Oil and Natural Gas E&P	+3.5
	+5$/bbl		Subtotal	+1.5
(Dubai spot)
			Inventory valuation	+38.0

				Total	+39.5

Copper Price		+10¢/lb		Metals	+3.5
(LME)			Total	+3.5

Cautionary Statement Regarding Forward-Looking Statements

This notice contains certain forward-looking statements, however, actual results may differ materially from those reflected in any forward-looking statement, due to various factors, including but not limited to, the following:

macroeconomic conditions and changes in the competitive environment in the energy, resources and materials industries;
the impact of COVID-19 on economic activity
changes in laws and regulations; and
risks related to litigation and other legal proceedings.

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Eneos Holdings Inc. published this content on 11 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2020 15:58:07 UTC

Delayed Japan Exchange Other stock markets 02:00:00 2024-04-25 am EDT			5-day change	1st Jan Change
703.4 ^JPY	-2.09%		-2.44%	+25.52%

Apr. 03	Eneos Buys Back Over 13 Million Shares for 9 Billion Yen in March	MT
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Eneos Buys Back Over 13 Million Shares for 9 Billion Yen in March	Apr. 03	MT
Tranche Update on ENEOS Holdings, Inc.'s Equity Buyback Plan announced on February 9, 2024.	Apr. 01	CI
Eneos' Unit JX Metals' Tender Offer for Tatsuta Electric Wire and Cable Delayed to April Due to Chinese Competition Laws	Mar. 26	MT
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ENEOS Holdings, Inc. Appoints Miyata Tomohid as CEO, Effective April 1, 2024	Feb. 27	CI
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Asia's sustainable aviation fuel projects and agreements	Feb. 19	RE
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ENEOS Holdings, Inc. announces an Equity Buyback for 150,000,000 shares, representing 4.96% for ¥50,000 million.	Feb. 08	CI
ENEOS Holdings, Inc. authorizes a Buyback Plan.	Feb. 08	CI
Japan's Eneos invests into U.S. clean hydrogen company	Jan. 11	RE
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Eneos Unit Agrees to Sell Stakes in Pan Pacific Copper, Chile Copper Mine to Marubeni	Dec. 20	MT
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ENEOS Holdings, Inc. Announces Executive Changes	Dec. 19	CI
Japan oil industry group expects OPEC+ to extend supply curbs	Nov. 20	RE
Japan's Nikkei rebounds sharply from two-day loss on earnings boost	Nov. 09	RE

	1st Jan change	Capi.
ENEOS HOLDINGS, INC.	+25.52%	13.84B
RELIANCE INDUSTRIES LTD	+12.96%	221B
BP PLC	+12.90%	108B
CHINA PETROLEUM & CHEMICAL CORPORATION	+16.63%	102B
MARATHON PETROLEUM CORPORATION	+34.48%	71.76B
PHILLIPS 66	+18.10%	67.03B
VALERO ENERGY CORPORATION	+28.56%	55.02B
IMPERIAL OIL LIMITED	+28.99%	37.84B
INDIAN OIL CORPORATION LIMITED	+31.07%	27.89B
FORMOSA PETROCHEMICAL CORPORATION	-10.78%	21.26B

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