ENEX OUTLINE Corporate Information

Transcription

1 ENEX OUTLINE Corporate Information , Toranomon, Minato-ku, Tokyo , Japan TEL (General inquiries)

2 Corporate Profile Performance Highlights Organization Chart Company Name ITOCHU ENEX CO.,LTD. Website Corporate Philosophy The best partner for life and society with Energy, with the Car, with the Home Total trading transactions (bilions of yen) 1, , ,071.6 Operating Profit (billions of Yen) With a change in the management environment, the Company aims to unify and expedite the establishment of strategies and the development of businesses by comprehensively consolidating the related businesses. Home-Life Sales Planning Department Security System Department ITOCHU ENEX HOME-LIFE HOKKAIDO CO., LTD. ITOCHU ENEX HOME-LIFE TOHOKU CO., LTD. ITOCHU ENEX HOME-LIFE KANTO CO., LTD. ITOCHU ENEX HOME-LIFE CHUBU CO., LTD. ITOCHU ENEX HOME-LIFE KANSAI CO., LTD. ITOCHU ENEX HOME-LIFE NISHI-NIHON CO., LTD. Field of Business Energy for all applications, whether as a key component of social infrastructure or as a means of enriching people s lives Power & Gas Business Group ECORE CO., LTD. ITOCHU INDUSTRIAL GAS CO., LTD. PT. ITC ENEX INDONESIA Code of Conduct Be Virtuous (reliability and sincerity, creativity and ingenuity, transparency and integrity) Net profit attributable to Itochu Enex s shareholders (billions of Yen) Total assets (billions of Yen) Power & Utility Power & Heat Business Development Department Power Supply & Management Department ENEX ELECTRIC POWER CO., LTD. TOKYO TOSHI SERVICE COMPANY OJI-ITOCHU ENEX POWER RETAILING CO., LTD. Established January 28, 1961 Representative Kenji Okada, Representative Director, President and Chief Executive officer Paid-in Capital 19, million yen Head Office Address , Toranomon, Minato-ku, Tokyo , Japan Number of Employees (as of 31, ) 650 (non-consolidated basis, including 204 at subsidiaries) 6,096 (consolidated basis) Business Office Asphalt Terminals Tank Terminals Power Plants 7.5 * We prepare consolidated financial statements based on international accounting standards (IFRS). * total trading transactions are presented in accordance with the Japanese accounting practices and represent the total sum of amounts of transactions that the Company and its consolidated subsidiaries conducted as a party to the contract and transactions in which the Company and its consolidated subsidiaries were involved as an agent. General Meeting of Shareholders Board of Corporate Auditors Board of Directors President CFO CCO CIO Distribution & Energy Innovation Business Group Power Sales Department Kita-Nihon Branch Higashi-Nihon Branch Chubu Branch Nishi-Nihon Branch Kyushu Branch Supply Department Asphalt Department ENEX FLEET CO., LTD. ENEXAUTO CO., LTD. OSAKA CAR LIFE GROUP CO., LTD. TOHOKU TANKU SHOUKAI CO., LTD. ENEX PETROLEUM SALES HIGASHI-NIHON CO., LTD. ENEX PETROLEUM SALES NISHI-NIHON CO., LTD. KYUSHU ENERGY CO., LTD. KOKURA ENTERPRISE ENERGY CO., LTD. Stock exchange listing Tokyo (first section; stock name: ENEX) securities code: 8133 Number of Shares Issued and Outstanding (as of 31, ) 116,881,106 Principal Shareholders (as of 31, ) ITOCHU Corporation Japan Trustee Services Bank, Ltd. (trust account) CBNY-GOVERNMENT OF NORWAY Enex Fund The Master Trust Bank of Japan, Ltd. (trust account) Kita-Nihon Branch Nishi-Nihon Branch Kyushu Branch * In addition to the locations on the map, we have a sales network throughout Japan. Head Office Higashi-Nihon Branch Chubu Branch Energy Innovation Corporate Administration Higashi-Nihon Industrial Energy Sales Department Nishi-Nihon Industrial Energy Sales Department Fleet & AdBlue Sales Department Marine Fuels Department Products Trade Department Finance & General Accounting Department Legal & Credit Control Department IT Planning Department Human Resources & General Affairs Department Corporate Communications Department Corporate Planning Department Subsidiaries 44 (as of 31, ) Audit Department Affiliates (equity method applied) 22 (as of 31, ) *Effective April 1,, JEN HOLDINGS CO., LTD. has become ENEX ELECTRIC POWER CO., LTD. As of April 1,

3 The best partner for life and society with Energy, with the Car, with the Home As the best partner for life and society, the Itochu Enex Group supports customers lifestyles and leads the way to a new future for energy. Supporting industry by supplying electricity and steam Fuel oil and lubricants for ships Renewable energy Fuel oil for factories Local heat supply system that contributes to energy conservation LNG for energy conversion Gas for industrial and medical use e-koto Shop energizing local communities Comfortable home renovations AdBlue for purifying exhaust gas Rent-a-car business enhances convenience of people s everyday lives Car-Life Station (CS) serves as an energy station in the community Fuel cards offering convenience to users Photovoltaic power generation system Electric Supply Service for Household CS also serves as a safe and stable energy supply base in times of disaster Kerosene and LP gas for home use Sale of automobiles Automobile gasoline and lubricants ENEFARM residential fuel cells Asphalt for road paving Residential lithium-ion electricity storage system ENE-POWABO S

4 Power & Gas Business Group Home-Life We aim to provide comfortable lifestyles through supply of environmentally friendly gas and its equipment. Power & Utility We operate electric power-related and heat supply businesses that deliver energy efficiency, comfort and economic benefits. Gas Supply Business We supply a broad base of customers across Japan with LP gas and town gas, energy sources widely used at homes and businesses as fuel for cooking, water heating, and industrial applications. Proposals for Better Home Energy Supply We support comfortable, rewarding living by offering a wide range of home improvement proposals, including kitchen and bathroom remodeling and the installation of photovoltaic power generation systems. Gas for industrial use We offer industrial-use gas used in all industry fields including oxygen and nitrogen; medical-use gas such as oxygen for inhalation, laughing gas for anesthesia and gas for sterilization; and a wide range of special gas. Gas for Automotive use We are expanding our network of automotive gas stations with the aim of promoting the widespread use of low-pollution LP gas vehicles. Electricity Supply Service for Households In April, through group companies involved in sales of LP gas, we began offering our e-koto denki! electricity supply service for households. This service is offered at economical rate plans that also reward households with T-Points. IT Support We provide robust support for retailer sales operations by developing and providing service systems and sales management systems that take full advantage of the latest IT and the Internet. The GASTAGE System I-Bingo mobile security terminal system G-Bingo work support system LP gas Town gas (Nakatsu City, Oita Prefecture) Gas for industrial use Kerosene Gas equipment (kitchen equipment, air-conditioning equipment, and household equipment, etc.) Smart energy equipment (photovoltaic power generation systems and ENEFARM residential fuel cells) ENE-POWABO S residential lithium-ion electricity storage system Remodeling Pressure resistance inspection Electric power Social contribution Cooking Classes for Kids As part of our mission as a company that supplies fuel for people s kitchens, we offer cooking classes that teach the joy and importance of food preparation and engage in dietary education activities to pass on Japan s rich and varied food culture to future generations. e-koto Shop e-koto Shop facilities are strategically located in areas suitable for pursuing a customer-oriented approach to generating demand. e-koto Shop enables customers to experience the latest energy products, while providing them with suggestions on smart lifestyle solutions designed for comfort. Electric Power Retail Business Having entered the electric power business as a proposal-making company with a comprehensive range of energy, we work to realize lower electric power costs and stable supplies for customers. Power Generation Business Making maximum use of the Itochu Enex Group s capabilities, we work to strengthen our initiatives in the power generation business, aiming for environmental sustainability as well as economic benefits. Vertically integrated model from power generation to retail sales Itochu Enex Power (in-house power generation) Generation Demand/supply Itochu Enex Itochu Enex Oji Group power plants Sales Purchased power (from markets, etc.) OJEX OJEX: Oji-Itochu Enex power retailing Co., Ltd. Integrated sales network across segments Power & Utility Home-Life Total households supplied Approx million households Dealers Approx. 1,900 locations Enex network members Approx. 930 locations CS network Dealers Enex network members Approx. 2,000 locations Approx. 900 locations Approx. 600 locations Energy Innovation Corporate customers Approx. 3,500 offices Heat supply-related Business Group member Tokyo Toshi Service Company s heat supply business provides hot and cold water for heating and air conditioning to multiple buildings within a certain area. It also provides low-co 2, energy-saving thermal storage contract-based services for a low initial cost at the time of installation or renewal of building air conditioning or hot water supply systems. In combination with urban development efforts, these services help achieve efficient energy use. Itochu Enex Group s Electric Power Businesses One strength of the Itochu Enex Group s electric power businesses is its vertically integrated business model that addresses power generation through the supply, demand, and sales stages. In addition to advancing a power generation business that balances environmental and economic performance through an optimal combination of the diverse power sources of the Itochu Enex Group and the Oji Group, these businesses take full advantage of the Itochu Enex Group s experience and sales network through to the stages of supply, demand, and sales, helping to reduce electric power costs for customers and ensuring a stable power supply in a fully deregulated power market. Solar power 1% Well-balanced power sources Wind 25% Hydroelectric 5% Natural gas 21% Base-load power supply (Coal-fired thermal power + hydroelectric) Middle power supply (Natural gas) Renewable energy (Solar power + wind + hydroelectric) Coal-fired thermal power 48% 53% 21% 31% Electric power (coal, fuel oil, natural gas, wind, hydropower, photovoltaic power) Steam District heating services Electric power supply/demand management services Thermal storage contract-based services Initiatives Related to Business Upgrading and expanding the power plant network We are taking steps in Itochu Enex s electric power business to integrate operations from power generation to retail sales, while also continuing our efforts to expand our capacity for power generation by drawing on operating companies of Itochu Enex Group company ENEX Electric Power Co., Ltd. and their diverse range of power generation facilities fueled by energy sources such as coal, fuel oil, natural gas, wind, hydropower and photovoltaic power. JEN Konbumori Wind Farm Co., Ltd. Joetsu Energy Service Co., Ltd. Hofu Energy Service Co., Ltd. JEN Tainai Wind Farm Co., Ltd. Amagasaki Energy Service Co., Ltd. JEN Kusu Wind Farm Co., Ltd. LP gas and town gas customers App million households LP gas outlets App. 1,900 Automotive Gas Stations 43 locations Power generation capacity 166 MW Annual electric power retail sales volume () 873 thousand MWh Heat supply centers 18 locations (ENEX + OJEX)

5 Distribution & Energy Innovation Business Group We operate Car-Life Stations that contribute to comfortable, convenient living and transportation by meeting every car-life need. Energy Innovation We propose optimal energy solutions for supporting the industrial and distribution base. We handle industrial-use energy, materials and also marine fuel. Automobile Energy Sales Business Automobile Energy Sales Business supplies energy to affiliated Car-Life Stations (CS*) across Japan, and improves profitability of CSs and provides strong support for CS management to station operators through ENEX ACT Programs. * CS is an abbreviation for Car-Life Station, it refers to service stations providing multiple services provided by Itochu Enex. Car Dealer Business We engage in business that includes sales of new and used cars, vehicle inspection, automotive bodywork, mechanical servicing and maintenance through Nissan Osaka Sales Co., Ltd., which has the top network throughout Osaka Prefecture and in the Hanshin district of Hyogo Prefecture. *Japanese version only. Initiatives Related to Business CARLIFESTADIUM Our new Carlife Stadium service brand combines car-related business brands previously deployed separately. The businesses encompassed under the Carlife Stadium brand include car rentals and car dealerships. The goal is to maintain our status as a brand beloved and chosen by customers in the community through optimal Web-centered promotions that clearly communicate the business ideals and the value they provide to consumers. ENEX ACT Program Under this program, Itochu Enex works closely with and provides close support to station operators to increase their profitability. To that end, we support community-based CS management to accurately assess current business performance based on key management indicators, then devise effective improvement proposals tailored to each station operator. Sensya Senka On this website, consumers can search for and compare car washes from across Japan. The broad range of content includes menus for searching by services such as car washes and coatings as well as customer reviews and feedback. *Japanese version only. Group CSs App. 2,000 locations Car Enex Brand CSs App. 450 locations CSs with Itsumo Rent-a-Car service App. 400 stations No. 1 trading firm-affiliated chain Car-Life Support Business We work with our affiliated CSs nationwide in providing them with enhanced merchandise, information and sales know-how, while helping them achieve growth. Credit Card Business We offer a variety of credit card options to meet the needs of our CS customers. Rakuten Point Card (Rakuten s common point service) Car Enex Itsumo Card (consumer) Partner s Card (corporate) IT Support By upgrading our E3 POS System to E6 POS, we ve developed a one-to-one marketing system tailored to the needs of individual customers based on centralized management, including customer information, vehicle information, and purchase histories. E3 POS System/E6 POS System CS Strategic Information System (System for analyzing sales data automatically extracted from Itochu Enex s proprietary CS Gasoline Kerosene Diesel oil Fuel oil Automotive lubricants Automobiles and automobile products Vehicle inspection and maintenance Rent-a-car services Sale of Industrial Energy We deliver industrial energy to corporate customers and propose optimal energy solutions that conserve energy and lower costs. AdBlue* High-Grade Urea Solution As part of our activities to address environmental problems, we sell AdBlue, a highgrade urea solution that breaks down and detoxifies diesel vehicle exhaust, to customers nationwide. * AdBlue is a high-grade urea solution, used in SCR systems, which breaks down and detoxifies car exhaust gas. Petroleum Product Trading Itochu Enex, the domestic petroleum products trading arm of the Itochu Group, engages in the import, export and sale in Japan of petroleum products. Global Projects Using our accumulated know-how and our business model, we vigorously press ahead with global business development. Palau (petroleum product import and wholesale business) State of Nebraska, U.S. (next-generation biodiesel project) Corporate customers App. 3,500 business sites Asphalt terminals Sale of Asphalt We take advantage of a nationwide sales network to deliver asphalt, a key industrial material, to customers all across Japan. Corporate Fleet Fuel Cards We issue corporate fleet fuel cards that enable customers to purchase gasoline, diesel, and other automobile fuels at a single price nationwide. Sale of Marine Fuel We sell marine fuel at major ports in Japan and overseas. Storage Tank Leasing We have developed a powerful supply network that satisfies our customers storage needs by owning and operating storage tanks nationwide. Tanker Operation and Chartering We engage in a global petroleum product tanker leasing and operation business that supports the distribution of petroleum products worldwide. AdBlue facility 20 AdBlue plant locations 3 locations with total storage capacity of 43,800 tons Approximately 20% share of sales in Japan Industrial-use energy and materials (gasoline, kerosene, diesel oil, fuel oil and LNG) Asphalt AdBlue high-grade urea solution Marine fuels and lubricants Import/Exports of petroleum products and transactions to regulate domestic supply and demand Chartering and operation of tankers Logistics services for petroleum storage tanks and facilities Global project and business Oil recycling business Flyash reuse busuness Initiatives Related to Business AdBlue s Nationwide Network Thanks to a growing number of large trucks that comply with the latest emissions restrictions, demand for the AdBlue, high-grade urea solution, is also growing. To ensure fast and reliable supply to customers, we re developing a nationwide production and supply network to enhance the AdBlue business infrastructure. Oil terminals with total storage capacity of 170,000 tons

6 Progress on Medium-term Business Plan Accelerating the Moving strategy to achieve sustained growth The Itochu Enex Group is making progress on its Moving -Sowing for tomorrow- twoyear medium-term business plan launched in fiscal. The goal is to achieve further growth in corporate value by realizing growth strategies while rapidly developing business foundations to account for the full deregulation of the electric power and gas businesses anticipated to occur during the time span covered by this mediumterm business plan. 20 (Billion) Operating profit Profit Record 16.4 Record Plan name Moving Sowing seeds for tomorrow Period 2 years (FY to FY) Basic policy Improvement of profitability Sowing seeds for long-term growth strategy Reinforcement of organizational strength and fundamental strength Quantitative plan (FY) Accelerating Overseas Business Expansion with a Focus on Asia While Itochu Enex began trading overseas in 2008, in recent years, we ve also been proactively deploying overseas projects by taking advantage of business models and expertise accumulated in Japan, along with the ITOCHU Group s overseas network. In 2011, we entered the petroleum products wholesale business in the Republic of Palau, an island state in the South Pacific. In 2013, we entered the biodiesel production business in the US state of Nebraska. In, we established a new company in Indonesia to tackle the industrial gas business. The Itochu Enex Group s global network Key regions where we do business Global projects (investments) Areas to which we dispatch personnel Rotterdam S. Korea Fujaira (UAE) Hong Kong Japan Guam Thailand Philippines Singapore Palau Indonesia Nebraska Houston Panama Launch of PT. ENEX in Indonesia In October, PT. ITC ENEX Indonesia (PT. ENEX) was established in Karawang International Industrial City in the suburbs of Jakarta, the Indonesian capital. This joint venture involving Itochu Enex and ITOCHU INDUSTRIAL GAS CO., LTD. produces and sells industrial gas for numerous Japan-affiliated companies that have entered the Indonesian market. The joint venture marks an important first step in the Group s plans to expand its businesses overseas, under the slogan Making Asia our backyard. Construction is currently underway on a site for oxygen and carbonic acid packing facilities. Actual operations are set to start around summer. Entering the LP gas sales business in the Philippines We will enter the LP gas sales business in the Philippines by establishing Creasia Energy Holdings, INC. with ITOCHU Corporation (investment ratio: ITOCHU Corporation 60%, Itochu Enex 40%). The joint venture involves acquiring part of ITOCHU Corporation s equity stake in IP&G, a joint venture of ITOCHU Corporation and a local partner company involved in the business of LP gas sales in the Philippines. Plans call for increasing LPG sales for commercial and industrial use in the Philippines by taking full advantage of the expertise of both companies. The joint venture will also seek to expand sales volume and earnings from sales of LP gas to households in the Philippines, where LP gas is reported to serve as a household fuel for some 40% of homes. The goal is to develop new sales channels and to cultivate demand in Asia through businesses in the Philippines Japanese GAAP IFRS * These targets have been formulated based on International Financial Reporting Standards (IFRS). * We formulated this medium-term business plan in April but, as a result of a review conducted due to changes in the business environment, in the forecast for consolidated earnings in the fiscal year ending 31, 2017, profit from operating activities has been revised from 20,000 million initially planned to 17,500 million. However, net profit attributable to Itochu Enex s shareholders has not been changed from that initially planned. * Regarding investments (facilities, shares of affiliated companies, etc.), we projected 35,000 million for two years (FY to FY) in the medium-term business plan, and the investment results in FY became 14,300 million. Accordingly, we intend to continue making investments exceeding 20,000 million in FY. Profit from operating activities: 17.5 billion Net profit attributable to Itochu Enex s shareholders: 10 billion ROE: 9.0% or above Home-Life Electricity Supply Service for Households Begins In April, in response to full deregulation of retail electricity sales, we began offering an electricity supply service for households called ekoto denki! Sales of this service began with Group member companies ITOCHU ENEX HOME-LIFE KANTO CO., LTD. and ECORE CO., LTD. Other Group companies will begin offering the service starting in August Energy Innovation Participation in Demonstration Project to Produce Bio Jet Fuel in Japan On December 1,, we announced our participation in a demonstration project to produce bio jet and diesel fuels using euglena in Japan, spearheaded by euglena Co., Ltd. Involving five companies and one local government, with euglena playing the central role, this project seeks to get Japan s first bio jet and diesel fuels production demonstration plant up and running in 2018 and to commercialize production of bio jet and diesel fuels by Starting in the first half of 2018, Itochu Enex will supply bio jet and diesel fuel feedstock other than the microalgae euglena and undertake research and verification on product supply/demand and distribution. We re also considering an expanded business role following commercialization of the technology in Super Formula, ITOCHU ENEX TEAM IMPUL Go for Win!! In, we concluded a major sponsorship agreement with Team Impul, which competes in Super Formula, aiming to be Asia s fastest, highest-ranking racing series. This year, we will also remain an official sponsor of Team Impul in the Super GT international racing series authorized by the FIA. As an energy trading company active in the automotive business, we re proud to sponsor a renowned racing team led by Kazuyoshi Hoshino and to help raise the profile of motor sports. The standardized brand name for this service is e-koto denki! Sales begin in April The Group will sell electric power under the standardized brand name e-koto denki! The group seeks to realize e-koto (ii koto: good things) for society and the environment, motivated by the slogan Starting e-koto together! The purpose is to propose various services that will help customers lead happy lifestyles. Brand logo and concept Koto (things) stands for products, services, and initiatives. The logo represents a society in which ii koto (good things) are widely disseminated. e = enex e = electricity e = energy e = ecology e = e-koto spreading everywhere Service area for ITOCHU ENEX HOME-LIFE KANTO CO., LTD. Tokyo (excluding remote islands), Kanagawa, Saitama, Chiba, Ibaraki, Gunma, parts of Shizuoka Service area for ECORE CO., LTD. Kyushu area * ECORE CO., LTD. will use the service name ECORE no e-denki. Other group companies plan to start sales of e-koto denki! ITOCHU ENEX HOME-LIFE HOKKAIDO CO., LTD. ITOCHU ENEX HOME-LIFE TOHOKU CO., LTD. ITOCHU ENEX HOME-LIFE CHUBU CO., LTD. ITOCHU ENEX HOME-LIFE KANSAI CO., LTD. ITOCHU ENEX HOME-LIFE NISHI-NIHON CO., LTD. * Depending on the customer s contracted volumes and usage of electricity, sales of the service may not be available. Electricity wholesale and supply/demand adjustment services also begin The Itochu Enex Group will also begin providing electricity retailing support services for local governments and businesses in other sectors who seek to sell electricity to households by creating a balancing group.* * Balancing group: A system whereby the representative of a group established by multiple retail power providers (in this case, Itochu Enex) mitigates imbalance risks in a balancing system by coordinating the power demand and supply balance of the entire group Introduce Rakuten Point Card Service, the Industry s Most Widely Used Points System In fiscal, we began introducing in the Rakuten Point Card service operated by Rakuten, Inc. As the industry s most widely used loyalty points system, the Rakuten Point Card service had more than 100 million members as of June. This service is already available at some Group member companies, and plans call for a steady expansion of its availability. We plan to increase the value of the services provided by the Group s Car-Life Stations by maximizing the advantages of this tie-up with the Rakuten Point Card service. Tie-up advantage 1 Tie-up advantage 2 Tie-up advantage 3 Attracting new customers Increasing the number of customers who actually come to Car-Life Stations Sharing customers among member shops Attracting customers who have yet to take the opportunity to visit a Car-Life Station Using and analyzing marketing data Supporting Car-Life Station management Specific example: Linking the Rakuten Point Card service to the E6 POS System Realizing one-to-one marketing tailored to the needs of individual customers through the centralized management of customer information and purchase histories