ENEOS : Q＆A（104KB）

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• ENEOS Holdings (5020) - Analysts' Meeting Q&A for the first quarter ended June 30, 2023
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1. Date & time: Thursday, August 10, 2023 (17:30－18:30)
2. Attendees: 100
3. Principal questions: Please find below
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－This document contains forward-looking statements. A cautionary statement appears in the endnote.－

1. Can you please share your assessment of the 1Q financial results?

1. The 1Q financial results are generally as planned for each business, compared with the plan announced in May. Temporary factors include the favorable impact of acquiring Japan Drilling Co., Ltd. as a subsidiary in the Oil and Natural Gas E&P business and a special valuation gain from the sale of Caserones in the Metals business. However, the results are generally as planned, and we did not change the full-year forecast.

1. I would like to know if the operation of refineries is going well.

1. In the Third Medium-Term Management Plan, we use UCL (Unplanned Capacity Loss) as a KPI for refinery operations. UCL indicates the impact of decline in capacity utilization against the plan, including not only CDU but also secondary equipment. The 1Q result of the current fiscal year was about 6%, compared with about 11% in the 1Q of the previous fiscal year. The impact of the trouble is improving.

1. I would like to know what kind of internal discussions were held on initiatives to improve corporate value.

1. We investigated our capital cost and necessary measures toward price-book value ratio (PBR) over 1×. In addition, we examined and analyzed our capital cost and the factors that kept our PBR below 1×.
2. 1. In the discussion, we talked about the need to stick to equity spreads. First, we believe it is important to achieve the Third Medium-Term Management Plan and improve ROE to the point where the equity spread turns positive.
   2. In addition, we must implement the growth strategy of the Third Medium-Term Management Plan, explain its progress, and have people understand its probability of success. To do this, we plan to implement each measure with a strong awareness of capital efficiency, focusing on ROIC.

This document contains forward-looking statements. Actual results may differ materially from those expressed or implied by forward-looking statements due to various factors, including but not limited to the following:

1. macroeconomic conditions and changes in the competitive environment in the energy, resources, or materials industries;
2. revision of laws and tightening of regulations;
3. risk of lawsuits and other legal risks.

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