Idemitsu Kosan : Medium-term Management Plan Revision
May 12, 2021 at 06:20 am EDT
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Medium-term Management Plan
Revision
(FY2020-2022)
May 11, 2021
Idemitsu Kosan Co., Ltd.
Securities code: 5019
Environmental changes following announcement of the medium-term management plan in 2019
Reduced demand for core products and lifestyle changes due to COVID
Accelerated decarbonization following the 2050 carbon neutral declaration
Increased resource price volatility amid capital excess
Need to reformulate medium-
to-long-term strategy and
accelerate initiatives
2
Steps for medium-term management plan revision
Anticipated long-term business environment
Reconfirm corporate purpose and establish a corporate vision for 2030
Basic strategy and management objectives towards 2030
Revision of medium-term management plan (2020-2022)
3
Long-term energy business environment scenarios towards 2050
Azure scenario is becoming
more plausible with recent
Scenario 1:
acceleration in decarbonization
"Squall"
High economic growth in
Asia-Pacific
Asia; Growth in petroleum
Petroleum Demand
demand outpaces effort to
Increase
reduce CO2 emissions
Scenario 2:
Unchanged
"Cloud"
Slower economic growth in Asia;
Solutions to environmental issues
Decrease
shelved
Drastic
Governments and businesses respond
decrease
more strongly to opportunities to
Scenario 4: address environmental issues
"Azure" National governments focus on green
recovery from COVID, promoting
decarbonization and economic recovery
Now
~2030
~2050
4
Anticipated long-term business environment
Many variables make the future business environment extremely uncertain, but decarbonization and aging are very likely to become global trends
Asian population forecasts
80
(100 million people)
High estimate
70
60
Medium estimate
50
40
30
Low estimate
20
2020
2040
2060
2080
2100
Median age forecasts (based on (age) medium estimate) by country
60
World
50
Japan
China
40
India
Southeast
30
Asia
20
2020 2040 2060 2080 2100
It will become necessary to enhance our resilience
while engaging in steady efforts towards the
resolution of future social challenges
Source: UN World Population Prospects (birth rates: high>medium>low)
5
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Idemitsu Kosan Co. Ltd. published this content on 11 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 10:19:06 UTC.
Idemitsu Kosan Co., Ltd. is specialized in the production and refining of petroleum products. Net sales break down by category as follows:
- refining of petroleum products (78.8%): fuels, lubricants, kerosene, etc. At the end of March 2019, the group operated 6 refineries in Japan;
- manufacturing of petrochemical products (12.5%): activity carried out in 2 production sites located in Japan;
- exploration and production of oil, coal, uranium and geothermal resources (7%);
- other (1.7%).
Net sales are distributed geographically as follows: Japan (69.8%), Asia-Pacific (19.2%), North America (7.2%), Europe (2.4%) and others (1.4%).
IDEMITSU KOSAN CO., LTD. 
