Idemitsu Kosan : Presentation on Results for FY2020（PDF：1,808KB）

Presentation on Results

for FY2020

May 11, 2021

Idemitsu Kosan Co.,Ltd.

Summary of Financial Results

• FY2020 Financial overview
• • Operating + equity income ("segment income") turned positive in FY20, mainly as inventory impact improved following an increase in crude oil prices
  • Segment income excluding inventory impact increased by ¥29.7 billion year- on-year, supported by improved time lag in Petroleum segment
  • Net income increased by ¥57.9 billion despite reporting losses on valuation

of ¥18.1 billion on long-term loans to NSRP		[￥ billions]
	FY2019			FY2020	Change
Operating Income	(26.2)			100.3	126.5
+ Equity Income
Inventory impact	(89.3)			7.5	96.7
Excluding inventory impact	63.1			92.8	29.7
Net Income Attributable to	(22.9)			34.9	57.9
Owners of the Parent
Excluding inventory impact	39.0			29.7	(9.3)

• FY2020 Dividends

interim:¥60/share, year-end: ¥60/share , total: ¥120/share * No changes from the previous announcement

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[￥billions]

Summary of FY2021 Forecast

 FY2021 Forecast overview

 Forecast a ¥39.7 billion year-on-year increase in segment income, with a recovery in resource prices and reversal of one-time losses in the power & renewable energy segment in FY20

 Anticipating a ¥50.1 billion year-on-year increase in net income, in part due to significant extraordinary losses in FY20

	FY2020	FY2021	Change
Operating Income	100.3	140.0	39.7
+ Equity Income
Inventory impact	7.5	0.0	(7.5)
Excluding inventory impact	92.8	140.0	47.2
Net Income Attributable to	34.9	85.0	50.1
Owners of the Parent
Excluding inventory impact	29.7	85.0	55.3

*While some inventory impact may arise if FY21 crude oil price stabilizes at $60, such impact is not included in forecasts

• FY2021 shareholder returns policy / dividend forecast
• • Achieve payout ratio of at least 50% on cumulative FY20-22 net income excluding inventory impact
  • Anticipating stable dividends of ¥120 per share

interim:¥60/share, year end: ¥60/share , total: ¥120/share

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Key Topics（FY2020）

• Impact of COVID 19 Pandemic
• • Decreased fuel demand as well as squeezed petrochemical margin throughout the year
• Status of Nghi Son Refinery in Vietnam
• • Under continuous stable operation
  • No change in equity loss from the previous forecast
  • Recorded 18.1 billion valuation losses on long-term loans to NSRP
    As a result, the balance of initial capital and long-term loans provided to NSRP decreased
• Reduction of legal capital surplus and reclassification to other capital surplus
• • Propose decrease in legal capital surplus and reclassification to other capital surplus as an agenda item for the June 23 shareholders' meeting in order to enhance flexibility in its future capital policies
  • ¥416.0 billion of the ¥458.1 billion in legal capital surplus will be reclassified

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Operating Environment

		Dubai Crude Oil			Australian Coal	Exchange Rate
[USD/bbl]						Price				[USD/ton]		Spot price	[JPY/USD]			(USD)
80.0										120.0										112.0
70.0										110.0										111.0
67.4																				109.9
										95.8							110.0
60.0					62.1				100.0
		61.2		60.0															108.8	108.9
																		109.0
50.0										90.0
							50.7							80.2				108.0
40.0				42.9	44.6			80.0
																		107.0	107.6				107.3
																	65.4	67.3
30.0										70.0
		30.5							67.8								106.0		106.2
																67.3				105.9
20.0										60.0
																		105.0
10.0										50.0			54.6			51.8	104.0					104.5
							FY2020
							FY2019
0.0										40.0										103.0
4	5	6	7	8	9	10 11 12	1	2	3	1	2	3	4	5	6	7	8	9	10 11 12	4	5	6	7	8	9	10 11 12 1	2	3

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