Consolidated Financial Results for the Second Quarter of Fiscal Year 2021 (From April 1, 2021 to September 30, 2021) [Japan GAAP]（PDF：387KB）

November 9, 2021

Consolidated Financial Results for the Second Quarter of

Fiscal Year 2021 (From April 1, 2021 to September 30, 2021) [Japan GAAP]

Company Name: Idemitsu Kosan Co.,Ltd. (URL https://www.idemitsu.com)

Company Code: 5019, Shares listed on: Tokyo Stock Exchange

Name of Representative: Shunichi Kito, Representative Director & Chief Executive Officer

Contact Person: Munehiro Sekine, General Manager, Investor Relations Office, Finance & Accounting Department

Telephone: [phone]

Scheduled date of filing of quarterly securities report: November 10, 2021

Scheduled date of commencement of dividend payments: December 7, 2021

Supplementary materials for the quarterly financial results: Yes

Quarterly financial results presentation: Yes (for institutional investors and analysts)

(Figures less than ¥1 million are rounded off)

1. Consolidated Financial Results for the Second Quarter of FY2021 (From April 1, 2021 to September 30, 2021)

(1) Consolidated operating results

(Percentage figures represent changes from the corresponding previous period)

									Net income
	Net sales		Operating income	Ordinary income		attributable to owners
									of the parent
	¥million		%	¥million	%	¥million		%	¥million		%
2Q FY2021	2,867,008		42.2	179,297	－	197,069		－	142,702		－
2Q FY2020	2,015,717		(32.8)	3,129	(94.8)	(25,823)		－	(32,115)		－

Note: Comprehensive income	2Q FY2021	¥ 164,206 million －%	2Q FY2020 ¥(36,795) million －%
	Net income per share		Diluted net income
		per share
		¥		¥
2Q FY2021		480.03		－
2Q FY2020		(108.04)		－

(2) Consolidated financial position

		Total assets		Net assets		Equity ratio
		¥million		¥million		%
2Q FY2021		4,173,960		1,356,813		31.0
FY2020		3,954,443		1,215,136		29.1
Reference: Total equity	2Q FY2021	¥1,295,486 million	FY2020 ¥1,150,930 million

2. Dividends

		Cash dividends per share
	As of Jun.30	As of Sep.30		As of Dec.31	As of Mar.31	Total
	¥	¥	¥	¥		¥
FY2020	－	60.00		－	60.00		120.00
FY2021	－	60.00
FY2021				－	60.00		120.00
(Forecasts)
Note: Revisions of the forecasts of cash dividends since the latest announcement: None

3. Forecasts of Consolidated Financial Results for FY2021 (From April 1, 2021 to March 31, 2022)

					(Percentage	figures represent changes from the	previous	fiscal year)
										Net income	Net income
	Net sales		Operating income		Ordinary income	attributable to
				per share
										owners of the parent
	¥million		%	¥million		%		¥million	%	¥million		%		¥
FY2021	6,580,000		44.4	300,000		114.2		330,000	204.5	220,000		530.0		739.97

Note: Revisions of the forecasts of consolidated financial results since the latest announcement: Yes

* Notes

1. Changes of number of material consolidated subsidiaries during the six months ended September 30, 2021: None
2. Application of the accounting method peculiar to the preparation of the quarterly financial statements: Yes
3. Changes in accounting policies, accounting estimates and restatement
4. 1. Changes in accounting policies arising from revision of accounting standards: Yes
   2. Changes arising from other factors: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of shares issued (common stock)
6. 1. Number of shares issued (including treasury stock)

As of September 30, 2021:	297,864,718	As of March 31, 2021:	297,864,718
b) Number of shares of treasury stock
As of September 30, 2021:	554,119	As of March 31, 2021:	596,197

1. Weighted average number of shares outstanding during the period Six months ended September 30, 2021: 297,274,818
   Six months ended September 30, 2020: 297,266,948

*1 This document is out of the scope of quarterly review by certified public accountants or audit firms.

*2 The financial forecasts above are based on information available and assumptions as of the date of publication of this document. Actual operating results may differ from the forecasts due to various factors. Additionally, for the assumptions used for the forecasts of the above, please refer to page 6 "Explanation of Forecasts of Consolidated Financial Results for FY2021" of the Appendix.

Contents of the Appendix

1. Qualitative Information on the Consolidated Operating Results for the Second Quarter of FY2021….…. 2

1. Explanation of Operating Results.………………………………………………………………………………... 2

(2) Explanation of Financial Position………………………………………………………………………………… 5

1. Explanation of Forecasts of Consolidated Financial Results for FY2021 …………………………………... 6

2. Consolidated Financial Statements for the Second Quarter of FY2021 and Major Notes……..……………. 7

1. Consolidated Quarterly Balance Sheets ………………………………………………………………………….. 7
2. Consolidated Quarterly Statements of Income and Comprehensive Income ………………………………….. 9

1) Consolidated Quarterly Statements of Income ……………………………………………………………… 9

1. 1. Consolidated Quarterly Statements of Comprehensive Income …………………………………………… 10
2. Consolidated Quarterly Statements of Cash Flows……………………………………………..…………… 11
3. Notes to the Consolidated Quarterly Financial Statements………………………………………………….…. 13
4. 1. Notes on the Assumption of a Going Concern…………………………………………………………… 13
   2. Notes on Significant Changes in Shareholders' Equity…………………………………………………... 13

3) Application of the Accounting Method Peculiar to the Preparation of	………………………………… 13
the Quarterly Financial Statements

1. Changes in accounting policies……………………………………………………………..………..……… 13
2. Consolidated Segment Information ……………………………………………………………………..…… 15
3. Significant Subsequent Events….….….….….….….….….….….….….….….….….….….….….….….…. 17

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1. Qualitative Information on the Consolidated Operating Results for the Second Quarter of FY2021

(1) Explanation of Operating Results

The overall domestic demand for main petroleum products during the six months ended September 30, 2021 continued to recover from the slump caused by the spread of COVID-19 last year and increased mainly for aircraft.

Dubai crude oil prices continued to increase until the end of September as the supply-demand balance remained tight because of increased oil demand due to the progress of economic recovery as a result of more and more people vaccinated mainly in Europe and the U.S., and in terms of supply, OPEC PLUS continued cooperative production cutbacks. As a result, the average price from April to September increased by $32.6/bbl from the same period last year to $69.3/bbl.

(Crude oil price and exchange rate)

	Six months ended	Six months ended	Change
	September 30, 2020	September 30, 2021
Dubai Crude Oil ($/bbl)	36.7	69.3	+32.6	+88.6%
Exchange Rate (¥/$)	106.9	109.8	+2.9	+2.7%

The Idemitsu Group's net sales for the six months ended September 30, 2021 were

¥2,867.0 billion, up 42.2% year on year, owing to factors including an increase in crude oil prices.

Operating income was ¥179.3 billion, up ¥176.2 billion year on year, owing to factors including the effect of inventory valuation caused by surging crude oil prices in the petroleum segment and improvement in product margins in the basic chemicals segment.

Net non-operating income was ¥17.8 billion, up ¥46.7 billion year on year, owing to factors including an improvement in equity in earnings of non-consolidated subsidiaries and affiliates. As a result, ordinary income was ¥197.1 billion, up ¥222.9 billion year on year.

Net extraordinary income was ¥6.3 billion, up ¥13.5 billion year on year, mainly owing to gain on sales of fixed assets.

Income tax expenses, which consist of income taxes-current and income taxes-deferred, amounted to ¥61.5 billion, up ¥63.7 billion year on year, due to an increase in net income before income taxes.

Consequently, net income attributable to owners of the parent was ¥142.7 billion, up ¥174.8 billion year on year.

2

The performance of our business by segment for the six months ended September 30, 2021 is as follows:

As to quarterly reporting periods, domestic subsidiaries use September 30 as their balance sheet date whereas overseas subsidiaries use June 30 as their balance sheet date, except for certain subsidiaries. As such, the following performance of the business segments includes the operating results of overseas subsidiaries for the six months ended June 30, 2021, and those of domestic subsidiaries for the six months ended September 30, 2021.

Net sales by segment

						(Unit: ¥Billion)
	Segment	2nd Quarter of		2nd Quarter of	Change
	FY2020		FY2021	Amount		%
	Petroleum	1,570.7	2,230.1	＋659.5		＋42.0 %
	Basic chemicals	144.0	250.5	＋106.6		＋74.0 %
	Functional materials	155.4	194.0	+38.6		+24.8 %
	Power and renewable	62.2	57.0	(5.2)		(8.3) %
	energy
	Resources	82.3	133.9	+51.5		+62.6 %
	Other	1.2	1.5	+0.3		+27.9 %
	Total	2,015.7	2,867.0	+851.3		+42.2 %
Segment income or loss
						(Unit: ¥Billion)
		2nd Quarter of		2nd Quarter of	Change
		FY2020		FY2021	Amount		%
	Petroleum	(30.3)		155.7	+186.0		－
	: excluding effect of
	inventory valuation	27.3		45.1	+17.7		+64.8 %
	Basic chemicals	(2.0)		10.9	+13.0		－
	Functional materials	6.2		10.2	+4.0		+64.5 %
	Power and renewable	(0.5)		(2.8)	(2.3)		－
	energy
	Resources	3.6		21.5	+17.9		+493.4 %
	Other	0.5		0.6	+0.0		+8.2 %
	Reconciliation	(2.6)		(4.2)	(1.6)		－
	Total	(25.1)		191.9	+217.1		－
	: excluding effect of
	inventory valuation	32.6		81.3	+48.8		+149.9 %

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