ENEOS : Supplementary Information

ENEOS : Supplementary Information

ENEOS Holdings, Inc.

Equities

5020

JP3386450005

Oil & Gas Refining and Marketing

Company Profile

Analysts' Consensus

Latest news about ENEOS Holdings, Inc.

Chart ENEOS Holdings, Inc.

Income Statement Evolution

Ratings for ENEOS Holdings, Inc.

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Other Oil & Gas Refining and Marketing

November 11, 2020 at 11:01 am EST

Security Code Tokyo 5020

November 11, 2020

Supplementary Information

～ ENEOS Group ～

Contents

Overview of ENEOS Group

Financial Results

Financial Results Data

Business Environment and Data

Energy Segment

Petroleum Products and Petrochemicals Business

Overseas Business Projects

Electric Power Business

Electricity and City Gas
Renewable Energy Material Business
High Performance Materials
Lubricants

Oil and Natural Gas E&P Segment

Business Area

Business Activities

Sales Volume and Reserves of Principal

Oil and Natural Gas E&P Projects

Production Schedule of Principal E&P Projects

Principal Individual E&P Project Overview

ENEOS Group's Reserve Standards

Metals Segment

12 Functional Materials / Thin Film Materials / Tantalum

and Niobium Business Principal Products and Applications Copper Business
Overseas Copper Mine Development
1 Worldwide Copper Cathodes Supply & Demand

28	16	Earnings Structure of Copper Smelting and Refining Business
17	Recycling and Environmental Services
29	18	Metal Group Affiliates

【Reference】

Our Long-Term Vision and Medium-Term Management Plan are in the link below

https://www.hd.eneos.co.jp/english/company/system/plan.html

Overview of ENEOS Group

Aiming to develop into one of the most prominent and comprehensive energy, resources and materials company groups in Asia

Market Share of domestic sales
of petroleum products
	47％
FY2019 actual: No. 1 in Japan
Petrochemicals Supplying Capacity
Paraxylene	※1
million

No. 1 in Asia	3.62 tons/year
Propylene	million
No. 1 in Asia	1.64 tons/year
Power Generating Capacity
1.59mW	124thousand kW
	Renewable Energy

(as of Sep. 30, 2020)

※1 External sales basis

JX Nippon Oil & Gas Exploration

Crude oil and natural gas production

(a project company basis) 110 thousandbarrels/day

Crude oil equivalent (FY2019 actual)

JX Nippon Mining & Metals

Equity entitled copper mine production

210 thousand tons/year

contained in copper concentrate (FY2019 actual)

Refined copper production capacity

450 thousandtons/year

Electronic Materials

Products with world No.1 market shares

Listed subsidiaries

NIPPO

Financial Results

Financial Results Data / IFRS

Financial Summary IFRS


					FY2019								FY2020


		1Q			FH		Full Year				1Q			FH	Full Year

(JPY billion)	Actual	Actual		Actual			Actual			Actual		Forecast

							(Nov. 2020)


Net Sales	2,514.8	5063.1		10,011.8	1,546.2		3362.3		7,500.0

Energy	2,129.9	4280.4		8,419.4	1,195.8		2607.9		6,060.0
Oil and Natural Gas E&P	31.7	59.1		133.4	22.7		47.2		110.0
Metals	247.6	499.1		1,004.4	221.7		495.0		960.0
Others	105.6	224.5		454.6	106.0		212.2		370.0
Operating Income (Loss)	49.3	130.9		(113.1)	21.0		88.9		200.0

Energy	13.0	49.2		(162.8)	(18.4)		20.1		85.0

Oil and Natural Gas E&P	13.2		24.8			(38.8)		0.7			1.5	5.0
Metals	15.3		35.2			44.6		19.2			36.9	54.0
Others	7.8		21.7			43.9		19.5			30.4	56.0

Finance Income (Loss)	(6.8)	(13.0)		(22.7)	(6.4)		(11.8)		(25.0)

Energy	(1.4)	(3.3)		(4.0)	(0.8)		(1.4)		(7.0)
Oil and Natural Gas E&P	(0.5)	(2.5)		(5.8)	(2.4)		(4.1)		(7.0)
Metals	(5.3)	(8.5)		(15.7)	(2.9)		(5.3)		(9.0)
Others	0.4	1.3		2.8	(0.3)		(1.0)		(2.0)
Profit attributable to owners of parent	17.4	71.0		(187.9)	(4.9)		36.4		90.0

Energy	4.5	31.5		(162.6)	(20.6)		8.8		48.0
Oil and Natural Gas E&P	6.9	12.4		(62.4)	(4.6)		(7.6)		(12.0)
Metals	4.0	17.1		16.6	12.8		21.5		33.0
Others	2.0	10.0		20.5	7.5		13.7		21.0
Capex	69.5	152.3		371.3	59.1		127.4		445.0
Depreciation and Amortization	78.3	157.4		266.5	79.7		124.6		256.0

Financial Results Data / IFRS

Operating Income by segment IFRS

		FY2019			FY2020
	1Q	FH	Full Year	1Q	FH	Full Year
(JPY billion)	Actual	Actual	Actual	Actual	Actual	Forecast
(Nov. 2020)

Operating Income (Loss)	49.3	130.9	(113.1)	21.0	88.9	200.0
Energy Segment	13.0	49.2	(162.8)	(18.4)	20.1	85.0
Petroleum Products	7.3	41.7	7.5	33.5	46.2	65.0
Petrochemicals	1.7	3.0	(19.0)	(2.7)	(9.5)	(13.0)
Electric power	3.1	4.6	10.8	6.2	10.2	13.0
Materials	19.6	38.0	44.4	6.8	10.2	10.0
Inventory Valuation	(18.7)	(38.1)	(206.5)	(62.2)	(37.0)	10.0
Oil and Natural Gas E&P Segment	13.2	24.8	(38.8)	0.7	1.5	5.0
Metals Segment	15.3	35.2	44.6	19.2	36.9	54.0
Functional Matls, Thin Film Matls and others	5.1	12.1	14.5	8.5	17.3	27.0
Mineral Resources	3.9	11.0	14.7	7.0	14.0	18.0
Smelting and Recycling	6.0	15.2	22.9	6.8	10.8	16.0
Non-allocated corporate expenses and others	1.3	(1.9)	(4.2)	(3.1)	(5.2)	(7.0)
Inventory Valuation	(1.0)	(1.2)	(3.3)	-	-	-
Others	7.8	21.7	43.9	19.5	30.4	56.0

Financial Results Data / IFRS

Operating Income by segment (Forecast)

	FY2020 Forecast (May 2020)			FY2020 Forecast (Nov.2020)
FH	LH	Full Year	FH	LH	Full Year
(JPY billion)

Operating Income (Loss)	(35.0)	145.0	110.0	88.9	111.1	200.0
(excl. Inventory Valuation)	15.0	150.0	165.0	125.9	64.1	190.0
Energy Segment	(70.0)	105.0	35.0	20.1	64.9	85.0
Petroleum Products	(33.0)	73.0	40.0	46.2	18.8	65.0
Petrochemicals	2.0	18.0	20.0	(9.5)	(3.5)	(13.0)
Electric power	4.0	1.0	5.0	10.2	2.8	13.0
Materials	7.0	18.0	25.0	10.2	(0.2)	10.0
Inventory Valuation	(50.0)	(5.0)	(55.0)	(37.0)	47.0	10.0
Oil and Natural Gas E&P Segment	2.0	(2.0)	0.0	1.5	3.5	5.0
Metals Segment	14.0	15.0	29.0	36.9	17.1	54.0
Functional Matls, Thin Film Matls and oth	10.2	10.8	21.0	17.3	9.7	27.0
Mineral Resources	5.5	4.5	10.0	14.0	4.0	18.0
Smelting and Recycling	4.2	3.8	8.0	10.8	5.2	16.0
Non-allocated corporate expenses and ot	(5.9)	(4.1)	(10.0)	(5.2)	(1.8)	(7.0)
Inventory Valuation	-	-	-	-	-	-
Others	19.0	27.0	46.0	30.4	25.6	56.0

Financial Results Data / IFRS

Balance Sheets IFRS

	Mar. 2020	Jun. 2020	Sep. 2020

(JPY billion)	Actual	Actual	Actual

Assets	8,011.3		7,694.9	7,763.7

Current assets	2,878.6	2,574.4	2,720.3
- Cash and deposits	402.0	468.3	381.0
Non-current assets	5,132.7	5,120.5	5,043.4
Property, plant and equipment	3,724.9	3,707.9	3,615.6
Goodwill	185.7	185.5	185.6
Intangible assets	345.4	341.2	340.7
Others	876.7	885.9	901.5

Liabilities	5,303.4	5,064.0	5,088.3

Interest-bearing debt	2,300.8	2,318.6	2,197.3
Other liabilities	3,002.6	2,745.4	2,891.0
Equity	2,707.9	2,630.9	2,675.4

Total equity attributable to owners of the parent	2,311.0		2,235.9	2,278.6
Non-controlling interests	396.9		395.0	396.8

Financial Results Data

Dubai Crude Oil Price

													($/bbl)

Average Price	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018			FY2019			FY2020
1Q	2Q	3Q	4Q	FY	1Q	2Q

Dubai Crude Oil	105	83	46	47	56	69	67	61	62	51	60	31	43

（＄/bbl)

120

100

Apr. 2013 Apr. 2014 Apr. 2015 Apr. 2016 Apr. 2017 Apr. 2018 Apr. 2019 Apr. 2020

Financial Results Data

Copper Price and Inventory Level

													(￠ /lb)
Average Price	FY2013	FY2014	FY2015 FY2016	FY2017	FY2018			FY2019			FY2020
1Q	2Q	3Q	4Q	FY	1Q	2Q

Copper	322	297	237	234	292	288	277	263	267	256	266	242	296
Inventory Level											Copper price
(1,000t)												(￠ /lb)
700													350
600													300
500													250
400													200
300													150
200													100
100													50
0													0
Apr. 2013	Apr. 2014	Apr. 2015	Apr. 2016	Apr. 2017	Apr. 2018	Apr. 2019	Apr. 2020

LME Copper inventory level		LME Copper price
(end of month)		(monthly average)

Financial Results Data

Exchange Rate

													(Yen/$)
Average Price	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018			FY2019			FY2020
1Q	2Q	3Q	4Q	FY	1Q	2Q

Exchange Rate	100	110	120	108	111	111	110	107	109	109	109	108	106

(Yen/$)

130

120

110

100

Apr. 2013 Apr. 2014 Apr. 2015 Apr. 2016 Apr. 2017 Apr. 2018 Apr. 2019 Apr. 2020

- Energy Segment -

Environment / Data

Domestic Petroleum Product Demand

Energy Segment

(Petroleum Products and Petrochemicals)

Note: Excluding Crude Oil for electric power plants.

Source: Petroleum Association of Japan and Company data

ENEOS Group Market Share and	Energy Segment
1	1
Demand in Japan, CDU Utilization Rate	(Petroleum Products and Petrochemicals)

Domestic Market Share				Domestic Demand			(KKL)
		2Q19	2Q20				2Q19	2Q20	Changes vs.
		YTD	YTD				YTD	YTD	2Q19 YTD

a)	Gasoline	49.4%	49.1%		a)	Gasoline	25,480	22,474	88.2%

b)	Kerosene	46.5%	36.8%		b)	Kerosene	3,540	3,628	102.5%

c)	Diesel Fuel	42.4%	43.0%		c)	Diesel Fuel	16,874	15,413	91.3%

d)	Fuel Oil A	48.8%	47.0%		d)	Fuel Oil A	4,556	4,405	96.7%

	a+b+c+d	46.8%	45.9%			a+b+c+d	50,449	45,921	91.0%

	Total Domestic Fuel 2	47.6%	45.9%			Total Domestic Fuel 2	77,426	69,014	89.1%

CDU 1Utilization Rate (Excluding the impact of periodic repair)

			FY2018	1Q19	2Q19	3Q19	4Q19	1Q20	2Q20

	ENEOS Group	3	91%	92%	91%	88%	82%	68%	61%


NOTES:
1	Crude Distillation Unit
2	Excluding crude oil for electric power plants
3	Excluding condensate splitters of Mizushima and Kashima				Source: Petroleum Association of Japan and Company data

Sales Volume by Product

Energy Segment

(Petroleum Products and Petrochemicals)

(ten thousand KL)

			ENEOS Group

		FH19	FH20	Changes vs.
		FH19


	Gasoline	1,311	1,103	-15.9%
	Premium	138	116	-15.9%
	Regular	1,167	982	-15.9%
	Naphtha	251	163	-35.1%
	Jet	86	40	-53.5%
	Kerosene	152	126	-17.1%
	Diesel Fuel	738	663	-10.2%
	Fuel Oil A	234	206	-12.0%
	Heavy Fuel Oil C	173	155	-10.4%
	For Electric Power	59	41	-30.5%
	For General Use	114	114	0.0%
	Total Domestic Fuel	2,945	2,456	-16.6%
	Crude Oil	1	0	-100.0%
	Lubricants & Specialties	151	135	-10.6%
	Petrochemicals (ten thousand tons)	469	355	-24.3%
	Exported Fuel	1,090	425	-61.0%
	LPG (ten thousand tons)	33	22	-33.3%
	Coal (ten thousand tons)	251	201	-19.9%
Total Excluding Barter Trade & Other	4,940	3,594	-27.2%
	Barter Trade & Other	1,210	1,043	-13.8%
	Total	6,150	4,637	-24.6%

Number of Service Stations (Fixed-Type)

Energy Segment

(Petroleum Products and Petrochemicals)

			End of	End of	End of	Sep. 30
			FY2017	FY2018	FY2019	FY2020

ENEOS		13,304	12,961	12,757	12,690
Idemitsu Kosan
6,573	6,465	6,384	6,342

Cosmo Oil	2,858	2,791	2,755	2,740

Other		1	795	792	775	777


Oil Companies	23,530	23,009	22,671	22,549
(76.5%)	(76.5%)	(76.5%)	(76.5%)

Private Brands and	7,217	7,061	6,966	6,916	2
Other		(23.5%)	(23.5%)	(23.5%)	(23.5%)
Total		30,747	30,070	29,637	29,465	2

Number of Company-Owned Service Stations

		End of	End of	End of	Sep. 30
		FY2017	FY2018	FY2019	FY2020
	ENEOS	3,010	2,954	2,905	2,881

Number of Self-Service Stations
		End of	End of	End of	Sep. 30 4
		FY2017	FY2018	FY2019	FY2020
	ENEOS	4,318	4,361	4,429	4,453

	Total in Japan 3	7,920	8,068	8,278	8,316

Notes:

1 Figures are total of Taiyo Oil and Kygnus Sekiyu 2 Estimated by ENEOS

3 Figures include only self-service retail outlets that are affiliated with oil companies 4 Number of Self-Service Stations for total in Japan is as end of Jun.2020

Petroleum Product Margins

(Gasoline, Kerosene, Diesel Fuel and Fuel Oil A)

Energy Segment

(Petroleum Products and Petrochemicals)

(Yen/L)

The bar graph indicates average margins for the year.

Apr. 2010 Apr. 2011 Apr. 2012 Apr. 2013 Apr. 2014 Apr. 2015 Apr. 2016 Apr. 2017 Apr. 2018 Apr. 2019 Apr. 2020

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

Petroleum Product Margins (Gasoline)

Energy Segment

(Petroleum Products and Petrochemicals)

（Yen/L）
90		25

80
70		20

60
		15
50
40
		10
30
20		5

10
0		0
Apr. 2014 Oct. 2014 Apr. 2015 Oct. 2015 Apr. 2016 Oct. 2016 Apr. 2017 Oct. 2017 Apr. 2018 Oct. 2018 Apr. 2019 Oct. 2019 Apr. 2020 Oct. 2020
Margin (Right axis)	Spot price (Left axis)	Crude oil CIF Price (Left axis)

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

Source : Trade statistics (Ministry of Finance, Japan)

Petroleum Product Margins (Kerosene)

Energy Segment

(Petroleum Products and Petrochemicals)

（Yen/L）

90			25

20	5

10
0	0
Apr. 2014 Oct. 2014 Apr. 2015 Oct. 2015 Apr. 2016 Oct. 2016 Apr. 2017 Oct. 2017 Apr. 2018 Oct. 2018 Apr. 2019 Oct. 2019 Apr. 2020 Oct. 2020

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

Source : Trade statistics (Ministry of Finance, Japan)

Petroleum Product Margins (Diesel Fuel)

Energy Segment

(Petroleum Products and Petrochemicals)

（Yen/L）
90	25
80
70	20

60
	15
50
40
	10
30
20	5

10
0	0
Apr. 2014 Oct. 2014 Apr. 2015 Oct. 2015 Apr. 2016 Oct. 2016 Apr. 2017 Oct. 2017 Apr. 2018 Oct. 2018 Apr. 2019 Oct. 2019 Apr. 2020 Oct. 2020

Margin (Right axis)		Spot price (Left axis)		Crude oil CIF Price (Left axis)

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

Source : Trade statistics (Ministry of Finance, Japan)

Petroleum Product Margins (Fuel Oil A)

Energy Segment

(Petroleum Products and Petrochemicals)

（Yen/L）

90			25

20	5

10
0	0
Apr. 2014 Oct. 2014 Apr. 2015 Oct. 2015 Apr. 2016 Oct. 2016 Apr. 2017 Oct. 2017 Apr. 2018 Oct. 2018 Apr. 2019 Oct. 2019 Apr. 2020 Oct. 2020

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

Source : Trade statistics (Ministry of Finance, Japan)

Paraxylene Price and Margin

(vs. Dubai Crude Oil)

Energy Segment

(Petroleum Products and Petrochemicals)

($/ton)

Average Price	FY2014	FY2015	FY2016	FY2017	FY2018			FY2019			FY2020
1Q	2Q	3Q	4Q	FY	1Q	2Q

Asian Contract Price	1,105	813	817	863	1,081	910	808	801	708	807	494	544
Margin (vs. Dubai Crude Oil)	498	482	477	456	579	423	365	350	341	369	271	231

($/ton)
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Apr.	Apr.	Apr.	Apr.	Apr.	Apr.	Apr.
2014	2015	2016	2017	2018	2019	2020
Margin (vs. Dubai Crude Oil)	Paraxylene (ACP)	Dubai Crude Oil

If ACP is undecided, average price of spot market is used

Benzene Price and Margin

(vs. Dubai Crude Oil)

Energy Segment

(Petroleum Products and Petrochemicals)

($/ton)

Average Price	FY2014	FY2015	FY2016	FY2017	FY2018			FY2019			FY2020
1Q	2Q	3Q	4Q	FY	1Q	2Q

Asian Contract Price	1,090	668	723	826	764	618	662	680	703	666	358	427
Margin (vs. Dubai Crude Oil)	483	337	383	406	262	131	219	229	337	229	136	115

($/ton)
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Apr.	Apr.	Apr.	Apr.	Apr.	Apr.	Apr.
2014	2015	2016	2017	2018	2019	2020
	Margin (vs. Dubai Crude Oil)		Benzen (ACP)	Dubai Crude Oil

If ACP is undecided, average price of spot market is used

Propylene Price and Margin (vs. Naphtha)

Energy Segment

(Petroleum Products and Petrochemicals)

($/ton)

Average Price	FY2014	FY2015	FY2016	FY2017	FY2018			FY2019			FY2020

1Q	2Q	3Q	4Q	FY	1Q	2Q

Far East Spot Price	1,202	767	825	951	1,035	891	947	860	790	872	710	839
Margin (vs. Naphtha)	451	314	388	435	436	350	454	320	349	368	436	442

($/ton)

1,800

1,600

1,400

1,200

1,000

800

600

400

200

Apr.	Apr.	Apr.	Apr.	Apr.	Apr.	Apr.
2014	2015	2016	2017	2018	2019	2020
		Margin (vs. Naphtha)		Propylene (Far East Spot)		Naphtha

Group Refineries and Plants

Energy Segment

(Petroleum Products and Petrochemicals)

Refineries : 10

Crude capacity：Total 1,868.8 KBD

(As of Oct. 31, 2020)

Plants : 2

Chita ※1

Sakai 141KBD

Osaka (OIREC)

Terminated Operation

in Oct. 2020

Mizushima 350.2KBD

Marifu 120KBD

Oita 136KBD

Sendai 145KBD

Kashima(Kashima Oil)

203.1KBD

Chiba 129KBD ※2

Kawasaki 247KBD

		Yokohama

Wakayama
		Negishi 270KBD

127.5KBD

※1 Scheduled to terminate the operation of plant's manufacturing	※2 Scheduled to start collaboration with PetroChina
functions（Oct. 2021）	International (JAPAN) Co., Ltd. at Chiba refinery
	instead of Osaka refinery in Dec.2020

Overseas Business Projects

Vietnam

Energy Segment

(Overseas)

Signed a Share Subscription Agreement with Vietnam National Petroleum Group (Petrolimex) in 2016, becoming an 8.0% shareholder, and signed a Strategic Cooperation Agreement to evaluate ways to enhance corporate value of both companies. Currently, became a 9.0% shareholder with additional acquisition.
Exploring measures to increase the corporate value of Petrolimex and various business opportunities in petroleum supply chain from refining to marketing, utilizing our expertise gained through long business experience in Japan
- Signed a memorandum of understanding to carry out a feasibility study on the cooperative project utilizing JXTG's
  Marifu Refinery in April 2018, and aim to establish the joint venture
- Signed a memorandum of understanding to carry out a feasibility study on the cooperative project for establishing LNG business in Vietnam, in the presence of government officials from Japan and Vietnam, in July 2019
Vietnam's petroleum product demand is approximately 430KBD (as of 2019)*, which is expected to grow to 560KBD

along with economic growth

*Gasoline, Kerosene, Diesel Fuel, Fuel Oil, Jet Fuel

Australia

Entered into the petroleum downstream business in Australia in 2015
- Demand fundamentals in Australia boosted by population growth and resource development
- Logistics costs from Japan to Australia are favorable
Founded a 50/50 joint venture company, TQ Holdings Australia Pty
Limited, with Qube Holdings Ltd, a leading Australian nationwide logistics company, in 2015
Further expansion of sales network mainly through acquisition of petroleum product sales company
- Acquisition of Petro National Pty Ltd and Oilsplus Holdings Australia Pty Ltd in 2017
- Acquisition of South West Fuel Centre Pty Ltd in 2019

Electricity & City Gas Business

Structure of electric power source (As of Jun. 2020)

Thermal

Biomass

Hydropower

Solar PV

Wind

Power generating capacity of each business

PPS	11 stations	1,536 thousand kW
	Thermal power generation	9 stations	1,463 thousand kW
	(Refinery capacity excluding private use)
	Biomass	1 station	68 thousand kW
	Hydropower	1 station	5 thousand kW
	(Contract with JX Nippon Mining & Metals)
Solar PV generation	19 stations	47 thousand kW
Wind generation	2 stations	4 thousand kW

Total (equity basis)		1,587 thousand kW

Energy Segment

(Electricity and City Gas )

Expansion of Electricity Business

Supply

Power source utilizing petroleum fuel / LNG

Started commercial operation of power generation facilities (60 thousand kW)

at Mizushima Refinery (Jun. 2018)

Power source utilizing recyclable energy

Started operation of biomass power generation facilities (68 thousand kW) at Muroran Biomass Power Generation G.K. (May 2020)
Started operation of mega solar power plants (1 thousand kW each) at Sakata (Sep. 2020) and Shimonoseki (Oct. 2020)
Started construction of mega solar power plant (1 thousand kW) at Fushiki (Oct. 2020)

Marketing

For extra-high-voltage,high-voltage (Industrial use)

Completed nationwide expansion (excluding Okinawa prefecture and remote

islands) (Apr. 2020)	(Logo)

For low-voltage power customers (Household)

Completed nationwide expansion (excluding Okinawa prefecture and remote islands) (Jun. 2020)
Further development of City Gas Business

Supply	(Logo)

Power source utilizing LNG

Started commercial operation of gas supply (270 t/h) in Kanagawa (Apr. 2020)

Marketing

Started city gas retail business (Feb. 2019) Sales area
"Tokyo area" of Tokyo Gas supply. Propane gas is not applicable

Renewable Energy Business

Energy Segment

(Renewable Energy)

Aiming for the Realization of a Sustainable Society

Conversion to clean energy	Global initiatives for rapid CO2 reduction
for lower environmental impact

Renewable Energy Business
- Aiming for wide range of renewable power generation such as solar, wind, geothermal, hydro, biomass, etc.

Mega Solar

Hydropower Generation

Onshore Wind Power Farm

Launched the Renewable Energy Association for

Sustainable Power supply

Aim to promote renewable energy as a long-term stable main power source

Investment in Renewable Japan (RJ)

• Concluded a business and capital alliance with the company in December 2019

✓ Launched Sustainable Power Supply Fund

• Working with RJ, Tokyu Land Corporation and Kansai Electric Power to expand power

sources
✓ Joined Taiwan's Offshore Wind Power Project
• Acquired a 6.75% stake in Yunlin Offshore Wind Farm from wpd group, a leading
	Generation Capacity：
German wind farm developer, in April 2019
	640MW (bottom-fixed type）
✓ Announced participation in offshore wind power development in Akita
	Yunlin Offshore Wind Farm
prefecture
• Working with Japan Renewable Energy and Tohoku Electric Power, target to start
operations after 2024

High Performance Materials Business

Energy Segment

(High Performance Materials)

Lubricants Business

Locations of Overseas Lubricants Business (As of Jun. 2020)

Sales and marketing offices

Own manufacturing plants

Expanding overseas business, especially in Asia

Sales and marketing offices	28
Manufacturing plants	10★
(★Own manufacturing plants,	Contractors: 60)

Energy Segment (Lubricants)

Expansion of Overseas Lubricants Business
Established a lubricants marketing company in Dubai (Jul. 2011)
Lubricants manufacturing plant started operation in Indonesia (Apr. 2012)
Started joint venture business for lubricants base oil with SK Group of South Korea (Oct. 2012)
Lubricants manufacturing plant started operation in Vietnam (Feb. 2014)
Established a lubricants marketing company in India (Aug. 2014)
Established a lubricants marketing company in Mexico (Jan. 2015)
Established a lubricants marketing company in the Philippines (Oct. 2019)
Overseas Lubricants Sales (Actual, Target)

800		(Unit: KKL)

	570	560	630

600


400

200

0

		2018 Act	2019 Act 2020 Target

- Oil and Natural Gas E&P Segment -

Environment / Data

Oil and Natural Gas E&P Segment

Business Area

08	09	02

04 03

0507

Oil and Natural Gas E&P Segment

Business Activities

▼ Project Company In Production ● Under Development ● Under Exploration ●

01	Japan	JX Nippon Oil & Gas Exploration Corp.	● ● ●

02	U.S.A.	JX Nippon Oil Exploration (U.S.A.) Ltd.	●
		JX Nippon Oil Exploration (EOR) Ltd. / Petra Nova Parish Holdings LLC	●

03	Vietnam	Japan Vietnam Petroleum Co., Ltd.
04	Myanmar	Nippon Oil Exploration (Myanmar) Ltd.
05	Malaysia	JX Nippon Oil & Gas Exploration (Malaysia) Ltd.
06 Indonesia	Nippon Oil Exploration (Berau) Ltd.
		KG Berau Petroleum Ltd.

07 Papua New Guinea Merlin Petroleum Company

	Nippon Oil Exploration (Niugini) Ltd.
	Nippon Papua New Guinea LNG LLC
08 09 UAE・Qatar	Abu Dhabi Oil Co., Ltd.
	United Petroleum Development Co., Ltd.
10 The North Sea	JX Nippon Exploration and Production (U.K.) Ltd.

● ● ●

● ●

● ● ●

●

● ●

Sales Volume and Reserves of

Principal Oil and Natural Gas E&P Projects

Oil and Natural Gas E&P Segment

（1,000boed）（million boe）

	Sales Volume				Reserves*
	First half of 2020FY
Country/Area

				Mar.-'18 end	Mar.-'19 end	Mar.-'20 end
Total		Oil	Gas
		(FY2017)	(FY2018)	(FY2019)

U.S.A.	4	3	1	26	16	14

Vietnam	4	3	1		8	6	6

Myanmar	2	0	2	5	7	2

Malaysia	31	4	27		58	86	84

Indonesia	24	1	23	146	139	140

Papua New Guinea	14	4	10		86	81	71

United Arab Emirates,	16	16	0	81	60	72
Qatar and other

North Sea, U.K.	26	12	14		109	116	107

Total	121	43	78		519	511	496

Sales Volume & Reserves：JX Nippon Oil & Gas Exploration's project companies including the equity-method affiliates

Please refer P.47 about our Reserves Evaluation Standards

Oil and Natural Gas E&P Segment

Production Schedule of Principal E&P Projects


	Projects		Schedule

Helang・Layang Gas Field

(Malaysia, Sarawak, Block SK10)

Tangguh LNG Project

(Indonesia, Berau)

Rang Dong､Phuong Dong

Oil Field (Vietnam, Block 15-2)

PNG LNG Project

(Papua New Guinie)

Mariner Oil Field

(U.K. North Sea)

Culzean Gas Field

(U.K. North Sea)

In 2017:Layang Field - Gas Production Commenced

In 2018 : Beryl Gas Field

In 2019:Layang Field - Oil Production Commenceed

Gas Production Commenced

In 2003

In 2014

In 2017 : Beryl Gas Field

Made FID for Layang Oil/Gas Field

Production of Helang Gas

Acquired Interest and

Field Commenced

In 2016

Development Commenced

Made FID for LNG Expansion

In 2009

In 2014

In 2020

Production Commenced

HCG-EOR production

Construction for LNG

commenced

expansion project underway

In 1998

In 2008

In 2013

In 2019

Rang Dong Oil Field

Phuong Dong Oil Field

Extended Rang Dong PSC Term

Extended Phuong Dong

Production Commenced

PSC Term

In 2007

In 2009

In 2014

Commencement

Made FID

Production Commenced

of the Project

In 2012

In 2013

In 2019

Acquired Interest

Made FID

Production Commenced

In 1994	Exploration		In 2015	In 2019

Acquired Interest	Development		Made FID	Production Commenced

2000	Production	2010		2020

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (U.S.A) ①

Production

	K2		Cooley		MP140
	（offshore）		（onshore）	（offshore）

Project Company	JX Nippon Oil Exploration (U.S.A.) Ltd.

Shareholders	ENEOS Holdings USA Inc.（100％）*
(Holding Percentages)


Project Status	Production		Production		Production

Interest	11.6%		50.0%		35.0%
	Occidental (41.8%)
Partners	EcoPetrol (20.8%)		Hilcorp		Fieldwood
ENI (13.4%)		(50.0%)		(65.0%)


	ConocoPhillips (12.4%)
Operator	Occidental		Hilcorp		Fieldwood
Sales Volumes		3,400 boed
First half of 2020FY	(Oil 2,900b/d, Gas 3.1mmcf/d)

* registered trade name was changed in 2020/Oct from JX Holdings (U.S.A.) Inc.

Production

●In 1990, began exploration, development, and production operations at an onshore field in Texas and offshore blocks in both deep and shallow water in the Gulf of Mexico.

●In 2007, acquired 11.6% interest in K2 from Anadarko.

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (U.S.A) ②

Production

Constructing carbon capture system that captures 90% of carbon dioxide (CO2) in the processed flue gas from an existing unit at the WA Parish power plant, and by injecting the captured carbon dioxide in the West Ranch oil field, trying to increase crude oil production.

	CO2-EOR Project

Project Company	JX Nippon Oil Exploration (EOR) Ltd.

Shareholders 1	JX Nippon Oil & Gas Exploration Corporation （100％）
(Holding Percentages:Common Stocks)

Project Status	Production

Interest	50.0％
Project Company	Petra Nova Parish Holdings LLC 2

1 JBIC holds preferred stocks issued by JX Nippon Oil Exploration (EOR) Ltd.

2 JX Nippon Oil Exploration (EOR) Limited and a subsidiary of NRG Energy Inc. respectively hold 50% interest of Petra Nova Parish Holdings LLC. Petra Nova Parish Holdings LLC holds 50% interest of the West Ranch Oil Field through its subsidiary. (JX Nippon Oil Exploration (EOR) Limited indirectly holds 25% interest of the West Ranch Oil Field.)

Production

●In 2014, participated in CO2-EOR business.

●In 2016, carbon capture system began operation. ●In 2017, began production.

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (Vietnam)

Production Development Exploration

Oil Fields

Gas Fields

Oil Pipelines

Gas Pipelines

Since the acquisition in 1992, the project has been one of our key operations. JVPC, our subsidiary, acts as operator in the block.

The Rang Dong Oil Field and The Phuong Dong Oil Field feature an unconventional fractured granite basement rock reservoir that is unique in the world. Our fracture evaluation technology is highly valued and is receiving worldwide recognition.

As part of our corporate activities, we have been promoting social welfare activities in Vietnam to improve the lives of the people of Vietnam.

	Block 15-2

	Rang Dong Oil Field	Phuong Dong Oil Field

Project Company	Japan Vietnam Petroleum Company

Shareholders	JX Nippon Oil & Gas Exploration (100%)
(Holding Percentages)

Project Status	Production/Development/Exploration

Interest	39.5%	64.5%

Partners	PVEP (30.0%)	PVEP (35.5%)
(Interest)	Perenco(30.5%)


Operator	Japan Vietnam Petroleum Company

Sales Volumes	4,800 boed
First half of 2020FY	(Oil 3,400b/d, Gas 8.0mmcf/d)

Production Development Exploration

●In 1992, JVPC acquired a working interest in block 15-2

●In 1994, JVPC discovered the Rang Dong Oil Field within block 15-2, and began production in that field from 1998.

●In July 2008, Rang Dong Oil Field achieved a cumulative production volume of 150 million barrels.

●In August 2008, JVPC began production in the Phuong Dong Oil Field.

●In November 2013, determined term extension of the Rang Dong Oil Field (5 years).

●In July 2014, block 15-2 achieved a cumulative production volume of 200 million barrels. ●In October 2014, JVPC began HCG-EOR project

●In November 2019, determined term extension of Phuong Dong Oil Field (5 years).

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (Myanmar)

We have been participating in the Yetagun project in Myanmar since the exploration stage. After the appraisal activities and the construction of the production and shipping facilities, the project is now at a stable production stage.

Production Exploration

	Block M-12, 13, 14

Project Company	Nippon Oil Exploration (Myanmar)

Shareholders	JX Nippon Oil & Gas Exploration (40.0%)
Mitsubishi Corporation (10.0%)
(Holding Percentages)
Government of Japan (50.0%)


Project Status	Production/Exploration

Interest	19.3%

Partners	Petronas Carigali (40.9%)
MOGE (20.5%)
(Interest)
PTTEP International (19.3%)


Operator	Petronas Carigali

Sales Volumes	1,600boed
First half of 2020FY	(Oil 0.1b/d, Gas 8.5mmcf/d）

Production

●In 1991, NOEX Myanmar acquired a working interest in blocks M-13/14 offshore Myanmar.

●In 1992, acquired a working interest in block M-12 and discovered the Yetagun Gas Field in that block.

●In 2000, production at the Yetagun Gas Field commenced, with the produced gas supplied to the Ratchaburi power plants in Thailand.

●In October 2014, began production in the Yetagun North Gas Field.

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (Malaysia)

Since the acquisition of Block SK10 in 1987, the project has been one of our key operations. We act as the operator in the block. The natural gas from the block is exported in the form of liquefied natural gas (LNG) to various countries including Japan.

		Production Development Exploration

		SK10
		（Herang Gas Field, Other）

Project Company		JX Nippon Oil & Gas Exploration (Malaysia)

		JX Nippon Oil & Gas Exploration (78.7%)
Shareholders		Inpex (15.0%)
(Holding Percentages)

		Mitsubishi Corporation (6.3%)
Project Status		Production/Development/Exploration

Interest		75.0％
Partners		Petronas Carigali (25.0%)
(Interest)


Operator		JX Nippon Oil & Gas Exploration (Malaysia)
Sales Volumes		31,000boed
First half of 2020FY		(Oil 4,100b/d､Gas 161.7mmcf/d)

Production Development Exploration

In 1987, acquired a working interest in Block SK10 offshore Sarawak, Malaysia.
In 1990, discovered the Helang Gas Field, where production commenced in 2003.
In 1991, discovered the Layang Oil and Gas Field.
In 2014, decided to develop the Layang Oil and Gas Field.
In 2017, gas production commenced in the Layang Oil and Gas Field.
In 2017, acquired a working interest in the Beryl Gas Field and development commenced.
In 2018, production commenced in the Beryl Gas Field.
In 2019, oil production commenced in the Layang Oil and Gas Field

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (Indonesia)

Production Development Exploration

Gas Fields

We have participated in the Tangguh LNG Project since the exploration stage and started LNG production in 2009. This is the second LNG project we have participated in, following the LNG Tiga project in Malaysia, and we are working to attain long- term and stable LNG production and revenue.

	Tangguh LNG Project

Project Company	Nippon Oil Exploration (Berau)

Shareholders	JX Nippon Oil & Gas Exploration (51.0%)
(Holding Percentages)		JOGMEC (49.0%)
Project Status	Production/Development/Exploration

Interest	12.2% (After Unitization)
Partners	BP (40.3%)	KG Berau/KG Wiriagar (10.0%)
(Interest)	MI Berau (16.3%)	LNG Japan (7.3%) CNOOC (13.9%)

Operator		BP
Sales Volumes*		23,600 boed
First half of 2020FY	(Oil 500b/d, Gas 138.6mmcf/d)

* Volumes attributable to the equity method affiliate are included Production Development Exploration

From 1990, excavated three test wells, and natural gas was discovered in the area. Subsequently, discovered natural gas in the Vorwata Gas Field, Wiriagar Deep structure, and other gas fields.
From December 2002, those with interests in the Berau, Wiriagar, and Muturi blocks agreed to become partners in unitizing the blocks and undertake development work cooperatively.
LNG production commenced in June 2009, and the first cargo was shipped in July 2009.
In July 2016, decided to expand Tangguh LNG Facility.
Construction for LNG expansion project underway

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (Papua New Guinea) ①

Production Development Exploration

		Kutubu Oil Field, Moran Oil Field,
		Gobe Oil Field, etc

Project Company		Merlin Petroleum Co (79.6%)
	Nippon Oil Exploration Niugini Pty Ltd (30.7%)


Project Status		Production/Development/Exploration
Interest		8.6％～73.5％
Partners		ExxonMobil Oil Search Santos
(Interest)		PNG Government, Landowners
Operator		Oil Search､ExxonMobil

Sales Volumes*		13,700 boed
First half of 2020FY		(Oil 3,600b/d, Gas 60.6mmcf/d)
* Including sales volume of PNG LNG

	PNG LNG Project

Project Company	Nippon Papua New Guinia LNG LLC (79.6%)

Project Status	Production
Interest	4.68%
Partners	ExxonMobil(33.2%) Oil Search (29.0%)
(Interest)	Santos(13.5%) PNG Government･Landowners(19.6%)
Operator	ExxonMobil

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (Papua New Guinea) ②

Production Development Exploration

Kutubu, Moran, Gobe oil fields and other

Production

In 1990, Japan Papua New Guinea Petroleum acquired Merlin in Papua New Guinea.
Subsequently, development, and production activities have been undertaken in the Kutubu, Moran, Gobe, SE Gobe, and SE
Mananda oil fields.
In 2008, acquired additional equity of oil field from

AGL Energy.

Exploration

In April 2011, discovered oil at excavating test well Mananda-5 in Block PPL219.
In January 2018, received independent certification of gas reserves of 4.36tcf in Block PRL3 (currently Block APDL13) of the P'nyang Gas Field.

PNG LNG Project

We have been involved in the PNG LNG Project since the beginning of the project. In December 2009, we made a Final Investment Decision on the Project, and the development work is in progress with the goal of starting shipments in 2014. PNG LNG Project has the full support of the PNG government, and we expect it to contribute to our revenues in the future.

Production

In December 2009, PNG LNG Project participants made a final investment decision to proceed with development.
In May 2014, the PNG LNG Project shipped its first LNG cargo.

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (UAE, Qatar)

El Bunduq

Umm Al Anbar

Neewat Al

GhalanMubarraz

Hail

	Oil Fields	Abu Dhabi Oil Bunduq


		Mubaraz, Umm Al-Anbar, Neewat Al-Ghalan, Hail

Project Company	Abu Dhabi Oil

		JX Nippon Oil & Gas Exploration (32.2%)
Partners	Cosmo Abu Dhabi Energy Exploration & Production Co., Ltd. (64.4%)
(Interest)	Chubu Electric Power Co., Inc. (1.7%)
		Kansai Electric Power Co., Inc. (1.7%)
Project Status	Production
Interest	100%
Operator	Abu Dhabi Oil

	Production

	El Bunduq

Project Company	United Petroleum Development
(Bunduq Company Limited)


Partners	JX Nippon Oil & Gas Exploration (50%)
(Interest)	Cosmo Energy Exploration &
Production Co., Ltd. (50%)

Project Status	Production
Interest	100%
Operator	Bunduq Company Limited

Production

In 1970, United Petroleum Development acquired a working interest in El Bunduq Oil Field.
In 1975, oil production commenced in El Bunduq Oil Field.
In 1983, oil production was resumed by a secondary recovery scheme using water injection.
In 2006, El Bunduq achieved a cumulative production volume of 200 million barrels.
In 2018, effectuation of New Concession Agreement.

Production

In 1967, acquired a working interest in block of Mubarraz.
In 1973, oil production commenced in Mubarraz Oil Field.
In 1989, oil production commenced in Umm Al Anbar Oil Field.
In 1995, oil production commenced in Neewat Al Ghalan Oil Field.
In 2009, 3 fields achieved cumulative production volume of 300 million barrels.
In 2012, effectuation of New Concession Agreement.
In November 2017, oil production commenced in Hail Oil Field.

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (U.K.) ①

U.K.

We have 8 fields currently producing oil and gas, and we have projects such as the Culzean Gas Field and Mariner Oil Field underway.

Production Exploration

	Brea, Andrew,	Culzean gas field
	Kinnoull and other fields

Project Company	JX Nippon Exploration and Production (U.K.) Ltd.

Shareholders	JX Nippon Oil & Gas Exploration (100％)
Project Status	Production	Production/Exploration

Interest	4.0%-30％	18.01%
Partners	BP, Repsol Sinopec,	Total (49.99％)
RockRose and others	BP (32.00％)


Operator	BP, TAQA, and others	Total
Sales Volumes*	26,500 boed
First half of 2020FY	(Oil 12,300b/d, Gas 84.8mmcf/d)

*including the production from Mariner Oil Field

Production

From 1994 to 2002, acquired a working interest in individual blocks
In December 2012, acquired some interest in production of plural assets from
ENI
In December 2014, Kinnoull started production
In October 2017, sold entire working interest in the Blane Oil Field
In July 2018, sold entire working interest in the Ninian Oil Field.
In December 2018, sold entire working interest in the Merganser Gas Field
In June 2019, Culzean started production

Oil and Natural Gas E&P Segment

Principal Individual E&P Project Overview (U.K.) ②

Shetland
Islands	Mariner Fields

Orkney

Islands

	Oil Fields	Blocks of JX Nippon Exploration and
U.K.		Production (U .K. )Ltd.

	Production	Exploration

	Mariner Field		Mariner East Field

Project Company	JX Nippon Exploration and Production (U.K.) Ltd.

Shareholders (Holding	JX Nippon Oil & Gas Exploration (100％)
Percentages)

Project Status	Development		Exploration

Interest	20.00%		20.00%

	Equinor 1 (65.11%)		Equinor (65.11%)
Partners	Siccar Point (8.89%)		Siccar Point (8.89%)
	ONE-Dyas 2 (6.00%)		ONE-Dyas (6.00%)

Operators	Equinor		Equinor

In 2018 May, Statoil changed its name to "Equinor".
In 2019 Apr, changed its name to "ONE-Days" due to merjer of ONE and Days.

New blocks acquired in 2014 by 28th round of Exploration governmental open tender .

These areas are next to the developed Mariner oil field. When oil and gas field are found, we expect reduction in development costs through the use of facilities in this oil field.

Production

●In December 2012, acquired the explorational interest in Mariner Oil Field from ENI.

●In February 2013, decided to develop.

●In August 2016, sold part of the working interest. ●In August 2019, started production.

Oil and Natural Gas E&P Segment

The ENEOS Group's Reserve Standards

The ENEOS Group's criteria for evaluating reserves conforms to the PRMS (Petroleum Resources Management System) Standards, drafted by the SPE (Society of Petroleum Engineers), WPC (World Petroleum Congress), AAPG (American Association of Petroleum Geologists), and SPEE (Society of Petroleum Evaluation Engineers).

The ENEOS Group's reported reserves are in line with reserves as defined by PRMS Standards. The degree of certainty

of the reserve values is categorized, in order, as either Proved, Probable, or Possible. Following trends common at other industry firms, the JXTG Group has used Proven and Probable reserves to arrive at its total reserves.

Definition of Proved Reserves

Reserves judged to have a high level of certainty from analysis of geoscience and production/petroleum engineering data, based on economic conditions, operational methods and laws and regulations assumed by the ENEOS Group in light of discovered reservoirs-there is at least a 90% probability that actual recovered volume will equal or exceed estimates of oil and natural gas deposits reasonably evaluated as commercially recoverable.

Definition of Probable Reserves

There is at least a 50% probability that additional oil and natural gas reserves will equal or exceed actual recovered volume of the total of estimated proved and probable reserves. While these additional reserves are evaluated in the same manner as proved reserves, the probability of recoverability of probable reserves is lower than proved reserves, but higher than possible reserves.

- Metals Segment - Environment / Data

Functional Materials / Thin Film Materials / Tantalum

and Niobium Business Principal Products and Applications

Metals Segment

Targets for	Product lines	Treated Rolled		High Purity	Primary applications	End-use applications
Corson Alloys
Semiconductors	Copper Foil		Tantalum	Capacitors
				Powders			Smartphones
Targets for	Titanium Copper	Phosphor Bronze	Auto-focus camera
Alloys
Magnetic				modules	PCs
Devices
Targets for	InP Compound		Connectors
FPDs	Semiconductors				Recording media

		FPC
Laser diodes	LSI	Communications
	infrastructure
	CT scans				Further demand growth
Electric vehicles
					in the age of IoT and AI

Functional Materials / Thin Film Materials / TantalumMetals Segment

and Niobium Business Global Market Share of Our Principal Products

Global market

End-use applications

Product

Primary applications

As of FY19

Mobile phones,

Digital

Communications

PCs

infrastructure and

Automobiles

Our estimate

smartphones

appliances, AV

data centers

Sputtering Targets for

60%

CPUs, memory chips, etc.

✔

Semiconductors

No.1

Sputtering Targets for

60%

Hard disks, etc.

✔

Magnetic Devices

No.1

InP Compound

50%

Optical communication devices,

✔

Semiconductors

No.1

ultra fast ICs

Treated Rolled Copper Foil

80%

Flexible printed circuit boards

✔

No.1

Phosphor Bronze Foil

65%

Connectors,

✔

(thickness less than 0.1 mm)

No.1

Springs for electronic parts

High Strength / High Conductivity

60%

Lead frames, Connectors,

✔

Corson Alloys

No.1

Titanium Copper Alloys

70%

High-end connectors, etc.

✔

No.1

High Purity Tantalum Powders

30%

✔

Capacitors, etc.

for Electronic Materials

No.1

Metals Segment

Copper Business

Overseas mines

Caserones

(Chile)

			52%1
			2019年		2020年1-2Q

	Copper concentrate2	126KT		49KT
SE-EW copper cathode		26KT		11KT

	Los Pelambres
			(Chile)
			16%1
			2019年		2020年1-2Q

	Copper concentrate2	368KT		176KT
	Escondida
			(Chile)
			3%1
			2019年		2020年1-2Q

	Copper concentrate2	906KT		449KT
SE-EW copper cathode	250KT		135KT

Stable

procurement

Investment

Gain from

investment

Holdings ENEOS

Alliance

Pan Pacific Copper (Japan)

(Raw material procurement and product sales)

67.8% Consignment of	Return of	32.2%
smelting and refining	resulting product

JX	JX Metals Smelting	Hibi Smelting
450KT	200KT
Nippon
Saganoseki Smelter &	Tamano Smelter,
	Refinery	Hibi Kyodo Smelting 3
	Hitachi Works
& Mining	100%	100%
LS-Nikko Copper
Metals
(Korea)
	270KT 4
	Onsan Plant

39.9%

5.0%

Smelting & Mining Mitsui

1	Shares indirectly owned by JX Nippon Mining & Metals (as of Sep. 2020) 2 Payable copper contained in concentrate.
3	Hibi Smelting equity share is 63.51%. 4 Total Capacity is 680KT. JX Nippon Mining & Metals has 39.9% equity.

*As announced on November 9, JX Nippon Mining & Metals has reached a basic agreement with Mitsui Mining & Smelting and Mitsui & Co., Ltd., joint

investors in the Caserones Copper Mine, on the transfer to JX Nippon Mining & Metals of all their rights and interests in the mine.

Metals Segment

Overseas Copper Mine Development

Caserones Copper Mine (Chile)


Acquisition date		May 2006
	$137 million
Acquisition price
	$4.2 billion
Initial investment
	(As of Sep. 2020)
Ownership
JX Nippon Mining & Metals	51.50%
Mitsui Mining & Smelting	25.87%
Mitsui & Co., Ltd.		22.63%

Mine life	From 2013 to 2040 (28 years )

Total production (28 years)

Copper : 3,550kt From copper concentrate 3,140kt

From SX-EW process

410kt

Molybdenum : 87kt

Production plan

In Mar. 2013, started SX-EW copper cathode production In May 2014, started copper concentrate production

		First 10 years	Average	Total
		(28 years)	(28 years)

	Copper Concentrate	150 kt/year	110 kt/year	3,140 kt
Copper	SX-EW Process	30 kt/year	10 kt/year	410 kt
	Total	180 kt/year	120 kt/year	3,550 kt
	Molybdenum	3 kt/year	3 kt/year	87 kt

SAG (semi-autogenous grinding)		Flotation Plant
Mill		(facility for recovering copper
		concentrate from crude ore)

*As announced on November 9, JX Nippon Mining & Metals has reached a basic agreement with Mitsui Mining & Smelting and Mitsui & Co., Ltd., joint investors in the Caserones Copper Mine, on the transfer to JX Nippon Mining & Metals of all their rights and interests in the mine.

Metals Segment

Worldwide Copper Cathode Supply & Demand

* * * *

*Forecasts by PAN PACIFIC COPPER

0/0.0

Note: For 2010 year-end,several types of agreement were made depending on negotiating parties, contractual period, etc.

120/12.0

100/10.0

80/8.0

60/6.0

40/4.0

20/2.0

Metals Segment

Earning Structure of Copper Smelting and Refining Business

Earning Structure of Copper Smelter & Refinery		Trends of Base TC/RC (negotiation each year-end)

LME copper	Cost of copper	Copper cathode
		TC/RC
cathode price	concentrate	sales price

Sales premiums

($ denominated)	Share of
	copper
TC/RC	smelter
($ denominated)
Cost of
copper	Share of
concentrate	mining
company
($ denominated)

Unit

-TC: Dollar per dry metric ton of copper concentrate

-RC: Cent per pound of copper in copper concentrate

Cost of copper concentrate

The price of copper concentrate, which custom smelters pay to mining companies, is the LME copper cathode price less TC/RC, which is smelting and refining margins. TC/RC under long-term contracts is normally determined through annual negotiation between copper smelters and mining companies.

Copper cathode sales price

The actual sales price of copper cathode produced by copper smelters is the LME price plus sales premium, which is established by reference to various factors, including importation costs and quality.

Metals Segment

Recycling and Environmental Services

Non-ferrous metal scraps

Industrial waste materials

Printed circuit	Plating	Mobile	Lithium-ion	Waste oil	Waste liquid	Shredder dust	Sludge
boards	products	phones	batteries


		Pre-treatment			5 affiliates		Rendering materials harmless

JX Nippon Tsuruga

JX Nippon Mikkaichi

JX Nippon Tomakomai

JX Nippon Environmental

JX Nippon Takasho

Recycle Co., Ltd.

Recycle Co., Ltd

Chemical Co. Ltd.

Services Co., Ltd.

CO., LTD.

Metal content of valuable metals after pre-treatment

Saganoseki Smelter & Refinery

HMC Dept. of the Hitachi Works

Tsuruga Plant

Recycled raw materials

Intermediate products

Copper concentrate

Recycled raw materials

Waste LIB

Waste cathode

Physical sorting process

Copper smelting & refining process

Solvent extraction refining

Pyro- & hydro-metallurgical process

Copper/Gold/Silver/Platinum/

Gold/Silver/Platinum/Palladium

Nickel/Cobalt/Lithium

Palladium/Selenium/Tellurium

Lead/Bismuth/Antimony etc.

Metal Group Affiliates

TANIOBIS GmbH
TANIOBIS GmbH is one of the world's top suppliers of tantalum and niobium
products, including high-purity metal powders and oxide powders. These are
used in capacitors, sputtering targets for semiconductors, SAW devices, and
other electronic devices essential to the advancement of the IoT society. Taking
advantage of its outstanding technological capabilities, marketing capacity, and
expertise, TANIOBIS has been actively developing new businesses targeting
areas such as the medical field.
Toho Titanium Co., Ltd.	Goslar(Germany)

The Toho Titanium Group manufactures titanium sponge and titanium ingots for
aerospace and general industrial applications, as well as high-purity titanium for
electronic materials, and fabricated titanium products. In its catalysts and
chemicals business, Toho Titanium is utilizing materials produced in the titanium
production process and its titanium production technologies to expand into other
fields, which include production of catalysts for polypropylene production, high-
purity titanium dioxide for electronic materials, and ultra-fine nickel powder for
multi-layer ceramic capacitors (MLCC).
TATSUTA Electric Wire and Cable Co., Ltd.	Chigasaki Plant

The TATSUTA Electric Wire and Cable Group has manufactured electric wires and cables. The technical knowhow from this business is applied to such diverse range of fields as EMI shielding film, conductive paste, water leakage detection sensor, and medical equipment products.

The EMI shielding film, a product developed independently by TATSUTA, is widely used as an indispensable component of smartphones and tablets.

HeadOffice＆Osaka works

Metals Segment

Tantalum powders

ultra-fine nickel powders

EMI shielding film

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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 16:00:06 UTC

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