伊藤忠エネクス（8133） – [Delayed]Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2022

This document is an English translation of quarterly financial results report released on January 31, 2022 and written initially in Japanese. The Japanese original should be considered as the primary version. January 31, 2022 Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2022 Company name: Listing: Stock code: URL: Representative: Contact: Itochu Enex Co., Ltd. Tokyo Stock Exchange, 1st Section 8133 https://www.itcenex.com/english/ Kenji Okada, Representative Director, President and CEO Shinichiro Inoue, Executive Officer, Assistant to Chief Financial Officer and General Manager, Finance & General Accounting Department Tel: +81-3-4233-8008 Scheduled date to file quarterly securities report: February 9, 2022 Scheduled date to commence dividend payments: – Preparation of supplementary results briefing material on quarterly financial results: Yes Holding of quarterly financial results presentation meeting: None 1. Consolidated financial results for the first nine months of the fiscal year ending March 31, 2022 (Millions of yen with fractional amounts rounded, unless otherwise noted) (from April 1, 2021 to December 31, 2021) (1) Consolidated operating results Revenue Profit before tax Net profit Profit from operating activities (Percentages indicate year-on-year changes.) Net profit attributable to Itochu Enex’s shareholders Comprehensive income Nine months ended December 31, 2021 December 31, 2020 Millions of yen % Millions of yen % 656,995 27.4 17,929 12.5 Millions of yen 19,008 % 18.5 Millions of yen 13,250 % 17.7 Millions of yen 11,331 % 19.0 Millions of yen 13,244 % 17.1 515,679 (23.2) 15,944 4.8 16,037 1.2 11,255 2.3 9,525 2.6 11,315 (2.4) Basic earnings per share attributable to Itochu Enex’s shareholders Diluted earnings per share attributable to Itochu Enex’s shareholders Nine months ended December 31, 2021 December 31, 2020 Yen 100.38 84.38 Yen – – (2) Consolidated financial position Total assets Total equity Total shareholders’ equity Ratio of shareholders’ equity to total assets Millions of yen Millions of yen Millions of yen % 440,856 408,327 168,212 161,399 141,774 136,233 32.2 33.4 As of December 31, 2021 March 31, 2021 2. Cash dividends Fiscal year ended March 31, 2021 Fiscal year ending March 31, 2022 Fiscal year ending March 31, 2022 (Forecast) First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Annual cash dividends per share Yen – – Yen 22.00 23.00 Yen – – Yen 28.00 Yen 50.00 23.00 46.00 Note: Revisions to the forecasts of cash dividends most recently announced: None Breakdown of year-end dividend for the fiscal year ended March 31, 2021: Ordinary dividend of ¥22.00, and anniversary commemorative dividend of ¥6.00 3. Consolidated earnings forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022) Revenue Profit from operating activities Profit before tax (Percentages indicate year-on-year changes.) Basic earnings per share attributable to Itochu Enex’s shareholders Net profit attributable to Itochu Enex’s shareholders Fiscal year ending March 31, 2022 Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 900,000 21.8 20,500 6.0 21,200 5.8 12,500 2.7 110.74 Note: Revisions to the consolidated earnings forecasts most recently announced: Yes * Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Changes in accounting policies and changes in accounting estimates a. Changes in accounting policies required by IFRSs: b. Changes in accounting policies other than the above: c. Changes in accounting estimates: (3) Number of issued shares (common stock) a. Total number of issued shares at end of period (including treasury stock) As of December 31, 2021 As of March 31, 2021 As of December 31, 2021 As of March 31, 2021 b. Number of treasury stock at end of period 116,881,106 shares 116,881,106 shares 4,000,795 shares 4,000,323 shares None None None c. Average number of outstanding shares during period (cumulative from the beginning of the fiscal year) For the nine months ended December 31, 2021 For the nine months ended December 31, 2020 112,880,577 shares 112,880,722 shares * Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation. * Proper use of earnings forecasts, and other special notes (Caution regarding forward-looking statements and others) The forecasts and other forward-looking statements in this report are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual business and other results may significantly differ from these forecasts due to various factors. Contents of Attached Materials 1. Qualitative Information Regarding Results for the First Nine Months …………………………………………. 2 (1) Explanation of Operating Results …………………………………………………………………………………………. 2 (2) Explanation of Financial Position …………………………………………………………………………………………. 7 2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto ……………… 9 (1) Condensed Quarterly Consolidated Statement of Financial Position ………………………………………. 9 (2) Condensed Quarterly Consolidated Statement of Comprehensive Income ……………………………. 11 (3) Condensed Quarterly Consolidated Statement of Changes in Equity ……………………………………. 13 (4) Condensed Quarterly Consolidated Statement of Cash Flows ………………………………………………. 14 (5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern ……………………………… 16 (6) Segment Information ………………………………………………………………………………………………………….. 16 – 1 – 1. Qualitative Information Regarding Results for the First Nine Months (1) Explanation of Operating Results 1) Results of operations During the first nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021), the Japanese economy showed some signs of recovery from the effects of the novel coronavirus disease (COVID-19), as voluntary stay-at-home directives and requests by local authorities to refrain from business activities eased compared to the first nine months of the previous fiscal year. However, as of January 2022, there has been little movement towards stable recovery of economic activity, and the future outlook remains extremely uncertain due to factors such as another increase in the number of people infected with COVID-19 variants. In response, the Group has established the “emergency headquarters for tackling the coronavirus pandemic,” headed by the President, to carry out appropriate company-wide management by deciding on and executing company-wide policies and necessary measures, and by continuously collecting and spreading information internally and externally. In addition, with “employee safety” and “infection prevention” as the Company’s top priorities, we are working to reduce the risk of infection through telecommuting, working at staggered hours and thorough disinfection of business sites, as well as to increase operational efficiency by improving the communication network environment necessary for the execution of business. In terms of business, we are promoting our business in accordance with our two-year medium-term business plan “SHIFT! 2022” which was newly formulated in April 2021. Overview of medium-term business plan 1. Name of the plan: SHIFT! 2022 2. Period: Two years (FY2021 to FY2022) 3. Basic policy: Bases, Environment and Energy, and Human Resources Bases ‧ Further enhancement of domestic sale network and customer base ‧ Active promotion of B-to-C business utilizing digital transformation ‧ Strengthening of overseas business development with a focus on Asia Environment and Energy ‧ Forays into untapped areas with environmental products, electricity and various other forms of energy ‧ Further expansion of the electric power business from generation to selling, especially with renewable energy ‧ Enhancing environmental technical capabilities and expand offerings of low-carbon and decarbonized products Human Resources ‧ Cultivating multi-talented human resources who will flourish in Japan ‧ Promoting diversity and fostering a diverse range of values and overseas – 2 – 4. Quantitative plan (FY2021): Target Consolidated Results for FY2021 (1) Net profit attributable to Itochu Enex’s shareholders: ¥12.5 billion (2) ROE: 9.0% or more Management indicators (1) Substantive operating cash flows*1: ¥30.0 billion or more each fiscal period (2) Consolidated dividend payout ratio: 40% or more (3) New investment (cumulative total over two fiscal years): ¥60.0 billion (*1) Substantive operating cash flows excludes working capital, etc. from cash flows from operating activities. The operating results for the nine months ended December 31, 2021 are as follows. Revenue Profit from operating activities Net profit attributable to Itochu Enex’s shareholders Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Change 515,679 656,995 141,316 15,944 9,525 17,929 11,331 1,985 1,806 Revenue was ¥656,995 million (up 27.4% year on year). This was mainly due to an increase in selling prices of domestic petroleum products resulting from higher crude oil prices. Profit from operating activities was ¥17,929 million (up 12.5% year on year). Net profit attributable to Itochu Enex’s shareholders was ¥11,331 million (up 19.0% year on year). This was mainly due to the impact of inventory valuation factors associated with higher LP gas import prices and valuation gains from making large-scale solar power plants (mega solar power plants) subsidiaries of the Company, while there was a reaction to the temporary revenue from operations that captured crude oil price fluctuations in the same period of the previous fiscal year. 2) Results of operations by segment Results of operations by segment are as follows. Home-Life Division Revenue Profit from operating activities Net profit attributable to Itochu Enex’s shareholders Nine months ended December 31, 2020 Nine months ended December 31, 2021 52,615 61,033 786 665 1,282 1,433 (Millions of yen) Change 8,418 496 768 In LP gas business of the Home-Life Division during the nine months ended December 31, 2021, the number of customers under direct LP gas supply contracts increased by approximately 5,000 from the end of the previous fiscal year to approximately 557,000 as a result of activities to acquire new customers and sales rights in the LP gas business. Although demand for commercial and industrial use, which was affected by COVID-19, is on a recovery trend, overall LP gas sales volume remained at the same level year on year due to a decrease in wholesale and automotive gas sales volume. Regarding sales of electricity for households, the division promoted the expansion of the customer base by focusing mainly on selling LP gas as a set. As a result, the number of supply contracts was a total of approximately 117,000 (an increase of approximately 8,000 from the end of the previous fiscal year). – 3 – Regarding the industrial gas sales business, sales volumes of all gas types increased year on year due to a recovery in the utilization rates of the customer plants to which we are supplying. As a result of these activities, the operating results for the nine months ended December 31, 2021 are as follows. Revenue was ¥61,033 million (up 16.0% year on year). This was mainly due to an increase in selling prices resulting from higher LP gas import prices. Profit from operating activities was ¥1,282 million (up 63.1% year on year). Net profit attributable to Itochu Enex’s shareholders was ¥1,433 million (up 115.5% year on year). This was mainly due to a recovery in the industrial gas-related business in line with the resumption of economic activity and the impact of inventory valuation factors associated with higher LP gas import prices. Car-Life Division Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Change Revenue 295,613 375,657 80,044 Profit from operating activities Net profit attributable to Itochu Enex’s shareholders 5,607 3,100 5,562 2,837 (45) (263) Looking at the Car-Life Division during the nine months ended December 31, 2021, in the Car-Life Stations (CS)*2 business, the number of the CS was 1,650, a decrease of 37 from the end of the previous fiscal year. Sales volumes of petroleum products were slightly higher year on year, as sales volume of gasoline and diesel fuel picked up, compared to the same period of the previous fiscal year, which saw a significant decline, despite the impacts of the spread of COVID-19 as well as poor weather conditions in the summer and a warm winter. In the automotive business, our car dealer business subsidiary OSAKA CAR LIFE GROUP CO., LTD. achieved an increase in sales volume year on year due to the recovery of sales of new models and other vehicles, despite the impact of the spread of COVID-19. As a result of these activities, the operating results for the nine months ended December 31, 2021 are as follows. Revenue was ¥375,657 million (up 27.1% year on year). This was mainly due to an increase in sales prices of domestic petroleum products linked to crude oil prices and an increase in sales volume. Profit from operating activities was ¥5,562 million (down 0.8% year on year). Net profit attributable to Itochu Enex’s shareholders was ¥2,837 million (down 8.5% year on year). This was mainly due to a contraction in retail margins in the CS business, while there was a recovery in the automobile dealer business. (*2) Car-Life Stations: Car-Life Stations are service stations offering multiple services provided by the Company. – 4 – Industrial Business Division Revenue Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Change 111,570 154,776 43,206 Profit from operating activities Net profit attributable to Itochu Enex’s shareholders 3,822 3,006 3,283 2,284 (539) (722) Looking at the Industrial Business Division, during the nine months ended December 31, 2021, the asphalt sales business conducted its sales activities with an awareness of profitability, despite a decrease in sales volume. In the marine fuel sales business, although sales volume for domestic vessels increased year on year as a result of expanding supply for new routes from existing customers, sales volume for ocean-going vessels decreased, resulting in a year-on-year decline in volume. In the corporate fleet fuel card business, sales volume increased year on year as a result of continuous efforts to acquire new customers. In the AdBlue®*3 sales business, which is being pursued as a business to reduce environmental impact, although concerns about urea shortages in Japan and overseas have arisen, the Company made efforts to ensure stable supply to existing customers by maximizing the use of the Saitama AdBlue plant, which newly started operation in September. As for the GTL fuel*4 sales business, sales volume has been increasing steadily, as the supply area has been expanded and the product has been adopted at construction sites in Japan. As a result of these activities, the operating results for the nine months ended December 31, 2021 are as follows. Revenue was ¥154,776 million (up 38.7% year on year). This was mainly due to the increase in unit sales prices of industrial petroleum products resulting from higher crude oil prices. Profit from operating activities was ¥3,283 million (down 14.1% year on year). Net profit attributable to Itochu Enex’s shareholders was ¥2,284 million (down 24.0% year on year). This is mainly due to the fact that, while the asphalt sales business increased its profit, it was largely affected by the reaction to the temporary revenue from operations capturing crude oil price fluctuations in the first nine months of the previous fiscal year. (*3) AdBlue® is a world-standard High-Grade Aqueous Urea used in the decomposition and detoxification of diesel exhaust. (AdBlue® is a registered trademark of Verband der Automobilindustrie e.V. (VDA).) (*4) Abbreviation for gas to liquids, a clean diesel replacement fuel made from natural gas with low environmental impact. Power & Utility Division Revenue Profit from operating activities Nine months ended December 31, 2020 Nine months ended December 31, 2021 55,881 65,529 5,005 2,322 7,402 4,593 (Millions of yen) Change 9,648 2,397 2,271 Net profit attributable to Itochu Enex’s shareholders In the electric power business of the Power & Utility Division, during the nine months ended December 31, 2021, high-voltage power sales volumes*5 increased year on year due to landing a large-scale project. Low-voltage sales volume increased year on year due to an increase in the number of contracts, particularly for households, and retail electricity sales volumes increased year on year overall. In the heat supply business*6, demand for heat decreased year on year due to the significantly lower average temperature this summer compared to the previous year. – 5 – As a result of these activities, the operating results for the nine months ended December 31, 2021 are as follows. Revenue was ¥65,529 million (up 17.3% year on year). This was mainly due to the effect of an increase in market wholesale volume in the electric power business. Profit from operating activities was ¥7,402 million (up 47.9% year on year). Net profit attributable to Itochu Enex’s shareholders was ¥4,593 million (up 97.8% year on year). This was mainly due to the contribution of valuation gains, etc. from making large-scale solar power plants (mega solar power plants) subsidiaries of the Company (impact of ¥2,935 million on net profit attributable to Itochu Enex’s shareholders), while the electricity retail margins decreased due to higher procurement prices caused by surging resource prices. (*5) Electricity sales volume includes brokerage volume for both high voltage and low voltage. (*6) Heat supply business: The heat supply business supplies cold and hot water for air conditioning to multiple office buildings and other buildings from a heat source plant using pipes. – 6 – (2) Explanation of Financial Position Assets, liabilities and equity As of March 31, 2021 As of December 31, 2021 408,327 246,928 161,399 440,856 272,644 168,212 (Millions of yen) Change 32,529 25,716 6,813 Total assets Total liabilities Total equity Cash flows Total assets amounted to ¥440,856 million as of December 31, 2021, an increase of ¥32,529 million from March 31, 2021. This was mainly due to an increase in property, plant and equipment of ¥25,483 million due to the acquisition of subsidiaries. Total liabilities amounted to ¥272,644 million, an increase of ¥25,716 million from March 31, 2021. This was mainly due to an increase in trade payables of ¥19,192 million due to an increase in purchase prices resulting from a rise in the crude oil prices and an increase in bonds and borrowings of ¥16,097 million due to the acquisition of subsidiaries. Total equity totaled ¥168,212 million, an increase of ¥6,813 million from March 31, 2021, due to factors including an increase of ¥11,331 million from net profit attributable to Itochu Enex’s shareholders and a decrease of ¥6,408 million by payment of cash dividends. While taking COVID-19 into consideration, the Group will expand peripheral businesses, develop new business areas, and aggressively promote investment in environment-related businesses, using the cash flow generated from its core businesses. With respect to financing capacity for the time being, we have sufficiently secured account overdraft facilities and commercial paper issuance facilities, in addition to maintaining ample cash and cash equivalents. Moreover, we are essentially free of debt amid a situation where we have maintained healthy levels of debt thus far, which is currently reflected by our net debt-equity ratio (net DER) of negative 0.01 times. Cash flows from operating activities Cash flows from investing activities [Free cash flows] Cash flows from financing activities Net increase (decrease) in cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the period Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Change 33,545 3,826 [37,371] (15,646) 21,726 (37) 29,372 (4,173) (15,177) (19,003) [14,195] [(23,176)] (13,920) 1,726 275 8 (21,451) 45 40,932 35,124 (5,808) Cash and cash equivalents (net cash) totaled ¥35,124 million as of December 31, 2021, up ¥283 million from March 31, 2021. – 7 – Cash flows from operating activities Cash flows from operating activities Changes in working capital and others Substantive operating cash flow Nine months ended December 31, 2020 Nine months ended December 31, 2021 33,545 10,334 23,211 29,372 4,365 25,007 (Millions of yen) Change (4,173) (5,969) 1,796 Operating activities provided net cash of ¥29,372 million. Major items included profit before tax of ¥19,008 million, depreciation and amortization of ¥15,224 million, and income taxes paid of ¥7,175 million. Net cash provided decreased ¥4,173 million year on year. Moreover, substantive operating cash flow increased ¥1,796 million year on year. Cash flows from investing activities The Group has always made investments with an awareness of capital efficiency based on our investment strategy. In the two years of the “SHIFT! 2022” medium-term business plan, we plan to invest a total of ¥60.0 billion, ¥30.0 billion to maintain and strengthen the important revenue base that generates cash, and ¥30.0 billion to invest in growth, such as renewable energy, environment-friendly business, and overseas business. Investing activities used net cash of ¥15,177 million. This was mainly due to payments for acquisition of additional shares in silent partnerships with the aim of operating large-scale solar power plants (mega solar power plants) of ¥8,397 million, and payments for purchase of property, plant and equipment and investment property of ¥8,899 million. Net cash used increased ¥19,003 million year on year. Cash flows from financing activities The Group aims to streamline Group-wide financing activities to enhance our corporate value. Enhancing Group-wide financial management through the introduction of our Group Financial System* resulted in ¥13,920 million in funds used for financing activities. This was mainly due to repayments of lease liabilities of ¥8,364 million and cash dividends paid to Itochu Enex’s shareholders of ¥5,762 million. Net cash used decreased ¥1,726 million year on year. *The Group Financial System streamlines fund management and procurement costs by sharing funds within the Group. – 8 – Thereto 2. Condensed Quarterly Consolidated Financial Statements and Significant Notes (1) Condensed Quarterly Consolidated Statement of Financial Position As of March 31, 2021 (Millions of yen) As of December 31, 2021 ASSETS Current assets Cash and cash equivalents Trade receivables Other current financial assets Inventories Income taxes receivable Trade advances paid Other current assets Total current assets Non-current assets Investments accounted for by the equity method Other investments Non-current financial assets other than investments Property, plant and equipment Investment property Goodwill Intangible assets Deferred tax assets Other non-current assets Total non-current assets Total assets 34,841 99,764 17,900 25,495 3,055 100 2,710 183,865 29,437 4,246 10,330 136,291 12,797 521 19,688 9,728 1,424 224,462 408,327 35,124 115,943 15,284 23,097 1,234 121 2,429 193,232 26,734 3,532 12,355 161,774 13,053 521 19,407 7,299 2,949 247,624 440,856 – 9 – LIABILITIES AND EQUITY Current liabilities Short-term bonds and borrowings Trade payables Lease liabilities Other current financial liabilities Income taxes payable Advances from customers Other current liabilities Total current liabilities Non-current liabilities Non-current bonds and borrowings Lease liabilities Other non-current financial liabilities Non-current liabilities for employee benefits Deferred tax liabilities Provisions Other non-current liabilities Total non-current liabilities Total liabilities Equity Common stock Capital surplus Retained earnings Other components of equity Treasury stock Total shareholders’ equity Non-controlling interests Total equity Total liabilities and equity As of March 31, 2021 (Millions of yen) As of December 31, 2021 3,041 102,768 10,285 5,614 3,874 11,006 14,353 150,941 14,418 50,499 14,425 9,925 1,001 5,465 254 95,987 246,928 19,878 18,974 99,829 (576) (1,871) 136,233 25,165 161,399 408,327 20,284 121,960 9,156 7,033 1,354 8,748 8,529 177,064 13,272 48,803 14,870 10,788 1,414 6,177 256 95,580 272,644 19,878 18,951 105,710 (894) (1,871) 141,774 26,438 168,212 440,856 – 10 – (2) Condensed Quarterly Consolidated Statement of Comprehensive Income Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Revenue Cost of sales Gross profit Other income and expense Selling, general and administrative expenses Loss from tangible assets, intangible assets and goodwill Other – net Total other income and expense Profit from operating activities Financial income and costs Interest income Dividends received Interest expense Other financial income and costs – net Total financial income and costs Profit before tax Income tax expense Net profit Net profit attributable to: Net profit attributable to Itochu Enex’s shareholders Net profit attributable to non-controlling interests Total Share of profit of investments accounted for by the equity method 515,679 (451,276) 64,403 (48,929) (187) 657 (48,459) 15,944 34 502 (798) (484) (746) 839 16,037 (4,782) 11,255 9,525 1,730 11,255 656,995 (593,819) 63,176 (49,825) (92) 4,670 (45,247) 17,929 24 94 (648) (3) (533) 1,612 19,008 (5,758) 13,250 11,331 1,919 13,250 – 11 – Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Other comprehensive income, net of tax effect Items that will not be reclassified to profit or loss FVTOCI financial assets Other comprehensive income of investments accounted for by the equity method Items that may be reclassified to profit or loss Exchange differences on translating foreign operations Cash flow hedges Other comprehensive income of investments accounted for by the equity method Total other comprehensive income, net of tax effect Comprehensive income Comprehensive income attributable to: Comprehensive income attributable to Itochu Enex’s shareholders Comprehensive income attributable to non-controlling interests Earnings per share attributable to Itochu Enex’s shareholders Total Basic Diluted (9) 29 (72) 28 84 60 11,315 9,585 1,730 11,315 84.38 – 20 23 7 17 (73) (6) 13,244 11,326 1,918 13,244 100.38 – (Yen) – 12 – (3) Condensed Quarterly Consolidated Statement of Changes in Equity Nine months ended December 31, 2020 Common stock Capital surplus Retained earnings Other components of equity Treasury stock Total shareholders’ equity Non-controlling interests Total equity Balance at April 1, 2020 19,878 18,934 (1,370) (1,870) 128,333 Net profit Other comprehensive income Comprehensive income Transactions with owners Cash dividends Changes due to additional acquisitions and sales of interests in subsidiaries Purchase and disposal of treasury stock Share-based payments Balance at December 31, 2020 Net profit Other comprehensive income Comprehensive income Transactions with owners Cash dividends Changes due to additional acquisitions and sales of interests in subsidiaries Transfer from other components of equity to retained earnings Purchase and disposal of treasury stock Balance at December 31, 2021 Shareholders’ equity 92,761 9,525 9,525 (5,084) (1) (23) 99,829 11,331 11,331 (5,762) 60 60 (5) (5) (Millions of yen) 23,551 1,730 151,884 11,255 (0) 60 1,730 11,315 9,525 60 9,585 (5,084) (675) (5,759) – 50 (0) 1 (0) – 50 (0) – (23) – (0) 11,331 25,165 1,919 161,399 13,250 (5) (1) (6) 11,326 1,918 13,244 (5,762) (646) (6,408) (23) – 312 (312) (0) (0) 19,878 18,951 105,710 (894) (1,871) 141,774 26,438 168,212 19,878 18,933 97,202 (1,310) (1,870) 132,833 24,656 157,488 Nine months ended December 31, 2021 Shareholders’ equity (Millions of yen) Common stock Capital surplus Retained earnings Other components of equity Treasury stock Total shareholders’ equity Non-controlling interests Total equity Balance at April 1, 2021 19,878 18,974 (576) (1,871) 136,233 – 13 – (4) Condensed Quarterly Consolidated Statement of Cash Flows Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) Cash flows from operating activities Profit before tax Depreciation and amortization Loss from tangible assets, intangible assets and goodwill Gain on remeasurement resulting from companies becoming subsidiaries Financial income and costs Share of profit of investments accounted for by the equity method Increase in trade receivables Decrease (increase) in inventories Increase in trade payables Other – net Dividends received Interest received Interest expense Income taxes paid Income taxes refund Net cash flows provided by operating activities Cash flows from investing activities Purchase of investments (including investments accounted for by the equity method) Proceeds from sales and redemption of investments (including investments accounted for by the equity method) Acquisition of subsidiaries, net of cash acquired Proceeds from acquisition of subsidiaries Proceeds from sales of subsidiaries, net of cash acquired Payment for loans receivable Collection of loans receivable Payments for purchase of property, plant and equipment and investment property Proceeds from sales of property, plant and equipment and investment property Purchase of intangible assets Proceeds from sales of intangible assets Decrease in deposits paid – net Other – net Net cash flows provided by (used in) investing activities 16,037 14,832 187 – 746 (839) (4,090) (86) 14,148 362 3,097 34 (728) (10,253) 98 33,545 (4,501) 5,092 – 11 – (680) 843 (7,591) 610 (1,159) 201 11,021 (21) 3,826 19,008 15,224 92 (4,211) 533 (1,612) (16,178) 2,380 18,852 (689) 670 25 (602) (7,175) 3,055 29,372 (1,008) 2,343 (8,397) – 825 (495) 536 (8,899) 668 (1,305) 24 – 531 (15,177) – 14 – Cash flows from financing activities Proceeds from bonds and borrowings Repayments of bonds and borrowings Repayments of lease liabilities Net increase in short-term borrowings Capital contribution from non-controlling interests Cash dividends paid to Itochu Enex’s shareholders Cash dividends paid to non-controlling interests Purchase of treasury stock Net cash flows used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the period Nine months ended December 31, 2020 Nine months ended December 31, 2021 (Millions of yen) 10,050 (14,301) (8,214) 2,528 50 (5,084) (675) (0) (15,646) 21,726 19,243 (37) 40,932 50 (521) (8,364) 1,323 – (5,762) (646) (0) (13,920) 275 34,841 8 35,124 – 15 – (5) Notes on Uncertainties of Entity’s Ability to Continue as Going Concern No items to report. (6) Segment Information Nine months ended December 31, 2020 Home-Life Division Car-Life Division Reportable segment Industrial Business Division Power & Utility Division Revenue 52,615 295,613 111,570 55,881 515,679 – 515,679 Intersegment revenue 4 5,698 4,231 13,001 (13,001) – 301,311 115,801 528,680 (13,001) 515,679 (Millions of yen) Total Adjustment Consolidated 52,619 14,644 786 1,344 665 34,422 5,607 5,334 3,100 6,869 3,822 4,295 3,006 3,068 58,949 8,468 5,005 4,451 2,322 64,403 15,220 15,424 9,093 – 724 613 432 64,403 15,944 16,037 9,525 Revenue from external customers Total revenue Gross profit Profit from operating activities Profit before tax Net profit attributable to Itochu Enex’s shareholders Other items Total assets (Note) 66,491 148,527 52,049 91,969 359,036 40,640 399,676 Intersegment transactions have been decided by reference to the market price. The adjustment of ¥432 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit (loss) not allocated to reportable segments. The adjustment of ¥40,640 million to total assets represents corporate assets not allocated to reportable segments. – 16 – Nine months ended December 31, 2021 Home-Life Division Car-Life Division Reportable segment Industrial Business Division Power & Utility Division (Millions of yen) Total Adjustment Consolidated Revenue 61,033 375,657 154,776 65,529 656,995 – 656,995 Intersegment revenue 72 7,392 6,460 16,578 (16,578) – 383,049 161,236 673,573 (16,578) 656,995 61,105 15,168 1,282 2,512 1,433 34,124 5,562 5,351 2,837 6,991 3,283 3,307 2,284 2,654 68,183 6,893 7,402 7,555 4,593 63,176 17,529 18,725 11,147 – 400 283 184 63,176 17,929 19,008 11,331 Revenue from external customers Total revenue Gross profit Profit from operating activities Profit before tax Net profit attributable to Itochu Enex’s shareholders Other items Total assets (Note) 76,187 150,707 66,559 117,553 411,006 29,850 440,856 Intersegment transactions have been decided by reference to the market price. The adjustment of ¥184 million to net profit attributable to Itochu Enex’s shareholders represents corporate profit (loss) not allocated to reportable segments. The adjustment of ¥29,850 million to total assets represents corporate assets not allocated to reportable segments. As of March 31, 2021 Reportable segment (Millions of yen) Home-Life Division Car-Life Division Industrial Business Division Power & Utility Division Total Adjustment Consolidated Total assets 72,235 150,123 56,288 94,979 373,625 34,702 408,327 (Note) The adjustment of ¥34,702 million to total assets represents corporate assets not allocated to reportable segments. Change in reportable segments In conjunction with the absorption-type merger of ENEXAUTO CO., LTD., which was a subsidiary of the Company, by ENEX LIFE SERVICE Co., Ltd., a subsidiary of the Company in the fourth quarter of the previous fiscal year, the Group reviewed the management classification and changed the method to include the business of ENEXAUTO CO., LTD., which was previously included in the Car-Life Division, in the Power & Utility Division. Due to the change in segments, segment information for the first nine months of the previous fiscal year has been adjusted based on the classification of reportable segments after the change. – 17 –