ENEOS : Q&A（144KB）

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■ ENEOS Holdings (5020) - Analysts' Meeting Q&A for the Third Medium-Term Management Plan

and the fiscal year ended March 31, 2023

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1. Date & time: Thursday, May 11, 2023 (16：00－17：30)
2. Attendees: 156
3. Principal questions:
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－This document contains forward-looking statements. A cautionary statement appears in the endnote.－

With respect to the preparations for the listing of JX Nippon Mining & Metals. The materials mention "strategic investments necessary for business portfolio transformation and shareholder returns." Is it correct to assume that this will be the use of the funds raised when the listing is realized?

1. It will be necessary to consider the balance between investment and shareholder returns, but we believe that the use of funds will be capital for investment and shareholder returns. However, the timing and the amount of funds to be raised have not yet been decided.

1. Does the portfolio management using ROIC as an indicator mean that there is a willingness to carry out strict management where withdrawal from underperforming businesses will be considered?

1. Although the ROIC and EVA figures had been calculated internally for some time, the company had not been able to come up with significant measures using those figures. For unprofitable businesses, we will set a time limit to improve performance and implement radical improvements. If the situation still does not improve, the question of whether to continue or withdraw from the business will be considered based on certain criteria. That is the purpose of this change.

1. With respect to the shareholder return policy, there was a change from using the three-year total to using the average for the 50% or more, but how will the specific operation change?

1. Many people pointed out that when the cumulative total is used, it is not possible to know the result until the end of the period (the final fiscal year of the medium-term plan). We believe that the use of the average makes it possible to respond more flexibly by allowing us to take various actions. For example, if there is a significant upturn in profits in the first year, we might be able to make additional returns in the second year.

1. With reference to the comparison between the fiscal 2022 results and the forecast announced in February, what were the contents of the upturns and downturns?

1. There were negative factors such as appraisal loss due to the decision to sell part of the Caserones equity and impairment loss due to the Taiwan offshore wind power project, but there were improved margins for refined petroleum products and a positive time lag, an improvement in the margins for petrochemicals, higher copper prices as well as a reduction of expenses. As a result, the FY2022 operating income excluding inventory valuation effects exceeded the forecast announced in

February.

(Notes)

Plans, forecasts, strategies and other non-historical facts contained in these materials are forward-looking statements based on information available at the time of preparation and are subject to various risks and uncertainties. Actual figures and indicators related to business performance and management may differ significantly from these forecasts due to changes in the business environment and other factors.

In addition, information related to companies other than our company and our group that is described in this document has been derived from public information and third-party sources, and we do not guarantee the accuracy of this information.

Copyright © 2023 ENEOS Holdings, Inc.