Idemitsu Kosan : Consolidated Financial Results for the First Quarter of Fiscal Year 2022（PDF：391KB）

August 9, 2022

Consolidated Financial Results for the First Quarter of Fiscal

Year 2022 (From April 1, 2022 to June 30, 2022) [Japan GAAP]

Company Name: Idemitsu Kosan Co.,Ltd. (URLhttps://www.idemitsu.com/en/index.html)

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

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

Contact Person: Daisuke Mogi, General Manager, Investor Relations Office, Finance & Accounting Department

Telephone: [phone]

Scheduled date of filing of quarterly securities report: August 10, 2022

Scheduled date of commencement of dividend payments: －

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 First Quarter of FY2022 (From April 1, 2022 to June 30, 2022)

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	%
	1Q FY2022				2,204,695			69.3		233,633		109.9		244,992		98.2	179,321	102.9
	1Q FY2021				1,302,263			32.5		111,305			－	123,600		－	88,380	－
	Note: Comprehensive			income 1Q	FY2022		¥191,526 million	(69.1%)			1Q FY2021 ¥	113,267 million (－%)
			Net income per share		Diluted net income
						per share
								¥						¥
	1Q FY2022							603.16						－
	1Q FY2021							297.31						－
(2) Consolidated financial position
					Total assets		Net assets						Equity ratio
					¥million				¥million							%
	1Q FY2022				5,153,610	1,595,386								30.5
	FY2021				4,601,183	1,436,512								30.7
	Reference: Total	equity	1Q FY2022 ¥1,570,662 million FY2021	¥1,412,101 million
2. Dividends
										Cash dividends per share
				As of Jun.30	As of Sep.30 As of Dec.31	As of Mar.31	Total
					¥				¥				¥					¥					¥
	FY2021	－		60.00				－			110.00			170.00
	FY2022	－
	FY2022						60.00				－			60.00			120.00
	(Forecasts)

Note: 1. Revisions of the forecasts of cash dividends since the latest announcement: None

2. Breakdown of the fiscal year-end dividend for FY2021: Ordinary dividend: ¥60.00;

Commemorative dividend: ¥50.00 (110th anniversary of foundation)

3. Forecasts of Consolidated Financial Results for FY2022 (From April 1, 2022 to March 31, 2023)

(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	%	¥
FY2022	9,260,000	38.5	375,000	(13.7)	400,000	(12.9)	280,000	0.2	941.80

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

* Notes

1. Changes of material consolidated subsidiaries during the three months ended June 30, 2022:
   Yes
   Newly consolidated companies: 1 (Seibu Oil Co., Ltd.)
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 June 30, 2022: 297,864,718	As of March 31, 2022: 297,864,718
b) Number of shares of treasury stock
As of June 30, 2022:	565,119	As of March 31, 2022:	561,317

1. Weighted average number of shares outstanding during the period Three months ended June 30, 2022: 297,302,757
   Three months ended June 30, 2021: 297,268,331

*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 5 "Explanation of Forecasts of Consolidated Financial Results for FY2022" of the Appendix.

Contents of the Appendix

1. Qualitative Information on the Consolidated Operating Results for the First Quarter of FY2022…...…. 2

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

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

1. Explanation of Forecasts of Consolidated Financial Results for FY2022 …………………………………... 5

2. Consolidated Financial Statements for the First Quarter of FY2022 and Major Notes……………………. 6

1. Consolidated Quarterly Balance Sheets ………………………………………………………………………….. 6
2. Consolidated Quarterly Statements of Income and Comprehensive Income ………………………………….. 8

1)	Consolidated Quarterly Statements of Income ……………………………………………………………… 8
2)	Consolidated Quarterly Statements of Comprehensive Income …………………………………………… 9

1. Notes to the Consolidated Quarterly Financial Statements………………………………………………….…. 10
2. 1. Notes on the Assumption of a Going Concern…………………………………………………………… 10
   2. Notes on Significant Changes in Shareholders' Equity…………………………………………………... 10

3) Application of the Accounting Method Peculiar to the Preparation of	………………………………… 10
the Quarterly Financial Statements

1. Changes in Accounting Policies……………………………………………………………..………..……… 10
2. Consolidated Segment Information ……………………………………………………………………..…… 11

1

1. Qualitative Information on the Consolidated Operating Results for the First Quarter of FY2022

(1) Explanation of Operating Results

During the first quarter of fiscal 2022, the domestic demand for main petroleum products increased for both primary fuels and aircraft due to the gradual decrease in the number of cases of COVID-19 and the lifting of the quasi-state of emergency measures.

With regard to crude oil prices, the supply-demand balance remained tight, as the prices have been on an upward trend due to the recovery in demand owing to the relaxation of activity restrictions in the United States and European countries, and in terms of supply, OPEC Plus continued cooperative production cutbacks after April and the situation in Ukraine and other factors had an impact. As a result, the average Dubai crude oil price from April to June increased by $41.1/bbl from the same period last year to $108.1/bbl.

(Crude oil price and exchange rate)

	Three months ended	Three months ended	Change
	June 30, 2021	June 30, 2022
Dubai Crude Oil ($/bbl)	66.9	108.1	+41.1	+61.4%
Exchange Rate (¥/$)	109.5	129.6	+20.1	+18.3%

The Idemitsu Group's consolidated net sales for the first quarter of fiscal 2022 were ¥2,204.7 billion, up 69.3% year on year, mainly due to factors including an increase in crude oil prices and the impact of the weaker yen.

Operating income was ¥233.6 billion, up 109.9% year on year, mainly due to the effects of the inventory valuation and time lags associated with the surging crude oil prices in the petroleum segment, and the increase in coal prices in the resources segment.

Net non-operating income remained almost unchanged at ¥11.4 billion, down 7.6% year on year. Consequently, ordinary income was ¥245.0 billion, up 98.2% year on year.

Net extraordinary income was ¥8.9 billion, up 18.9% year on year, mainly due to the sale of fixed assets of domestic subsidiaries, while a loss from the step acquisition was incurred when the Company acquired additional shares of Seibu Oil Co., Ltd., which then became its consolidated subsidiary.

Income tax expenses, which consist of income taxes-current and income taxes-deferred, amounted to ¥74.7 billion, up 85.2% year on year, due to an increase in net income before income taxes.

Consequently, net income attributable to owners of the parent was ¥179.3 billion, up 102.9% year on year.

2

The performance of our business by segment for the three months ended June 30, 2022 is as follows:

As to quarterly reporting periods, domestic subsidiaries use June 30 as their balance sheet date whereas overseas subsidiaries use March 31 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 three months ended March 31, 2022, and those of domestic subsidiaries for the three months ended June 30, 2022.

Net sales by segment

(Unit: ¥Billion)

	Segment		1st Quarter of		1st Quarter of	Change
			FY2021		FY2022	Amount		%
	Petroleum		998.7		1,754.2	+755.5		+75.6 %
	Basic chemicals		121.8		187.7	+66.0		+54.2 %
	Functional		95.1		120.4	+25.3		+26.7 %
	materials
	Power and		25.7		36.4	+10.7		+41.7 %
	renewable energy
	Resources		60.3		105.4	+45.1		+74.7 %
	Other		0.7		0.6	(0.1)		(18.8) %
	Total		1,302.3		2,204.7	+902.4		+69.3 %
Segment income or loss						(Unit: ¥Billion)
				1st Quarter of	1st Quarter of	Change
				FY2021	FY2022	Amount		%
	Petroleum		98.9	216.6	+117.7		+119.1 %
	: excluding effect of							+93.9 %
	inventory valuation		29.6	57.4	+27.8
	Basic chemicals		6.7	8.1	+1.4		+20.6 %
	Functional materials		4.3	3.3	(1.0)		(23.7) %
	Power and renewable		(1.0)	(3.7)	(2.7)		－
	energy
	Resources		13.0	31.7	+18.7		+144.4 %
	Other		0.1	0.0	(0.0)		(51.1) %
	Reconciliation		(2.4)	(11.9)	(9.6)		－
	Total		119.6	244.1	+124.5		+104.2 %
	: excluding effect of							+68. 8 %
	inventory valuation		50.3	84.9	+34.6

[Petroleum segment]

Net sales in the petroleum segment were ¥1,754.2 billion, up 75.6% year on year, mainly due to the surging crude oil prices. Segment income was ¥216.6 billion, up 119.1% year on year, due to positive factors such as effects of the inventory valuation and time lags associated with the surging crude oil prices, and higher export margins.

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