Itochu Enex Group Integrated Report We started off in 1961 with only six gas stations. Over the course of more than half a century, we have worked to contribute to an afuent society and quality of life and bring many smiles, growing with our customers. Now we are transforming ourselves from a traditional energy trading company ~ to an energy trading company ~ supporting the life in local communities. And we will continue to respond to stakeholders’ expectations, live with local communities, and contribute in making a sustainable society that brings forth a new era through co-creation. We strive to pass on very valuable things for people and local communities so that future generations may enjoy a more prosperous future. The Best Partner for Life and Society – with Energy, with the Car, with the Home – Itochu Enex Group A service station afliated with Itochu Fuel Corporation was opened. Minami-morimachi service station, Kita-ku, Osaka ENEX REPORT 2018 1 This is , ENEX Itochu Enex Group’s journey Change revolution Accelerate Change and Growth 2008~2010 2014 2017~2018 in value creation over half a century Develop global businesses horizontally and Enex Group, which has been developing business mainly in the eld of energy beyond the time of more than vertically, strengthen core businesses and half a century. We continue to move towards the future as a "The best partner for life and society" listed in our create synergies Transform the petroleum and gas Reforming the revenue base, Reforming Corporate philosophy. business model, Upgrade "Enex DNA" the organizational base 2011~2013 11.0 2015~2016 10.4 Changes in performance and main events Prologue to change ■ Net prot attributable to Itochu Enex's shareholders (billions of yen) 2004~2008 Improvement of petroleum product distribution *Unit performance until FY 1998, and gures for consolidated results since FY1999. functions, transformation into a "company *The figures of this page are based on IFRS(International Financial Reporting providing the best mix of energy" Improvement of prorability, Standards) from FY 2013. Promotion of organizational structure reform Sowing seeds for long-term growth strategy for the new era 7.5 7.1 5.5 1961 1970 1980 1990 2000 ~ 2010 2014 2017 2020 FY ENEX EPOC 1961 ~ 2009 Era of Oil and Gas 2010~ Era of Oil ,Gas and Power 2018~ Era of Oil ,Gas,Power and Mobility Company Timeline Jan. 1961 The Company is founded Mar. 2001 The Company takes over gas supply service in Nakatsu City, Oita Oct. 2008 The petroleum product trading business run by Itochu Corporation May. 2013 The Company and Itochu Corporation jointly invest in a next- May 1965 The Company acquires stock in Oita Kyuseki Hanbai Co., Ltd. (today a Prefecture, with the goal of breaking into the city gas market. and the petroleum product logistics business run by Itochu Petroleum generation biodiesel production business in the United States. consolidated subsidiary). Jul. 2001 The Company changes its name from Itochu Fuel Corporation to Japan Ltd. are split off and acquired by Itochu Enex Co., Ltd. Dec. 2013 JEN Holdings, Co., Ltd. (currently consolidated subsidiary) acquires Mar. 1970 The Company acquires stock in Unoshima Sansuiso K.K. and Itochu Enex Co., Ltd. Its 18 consolidated subsidiaries are renamed at Apr. 2009 The Company transfers the LPG lorry wholesales business to JAPAN all shares of Tainai Wind Farm Co., Ltd., and further expands its wind advances into the high-pressure gas business. the same time. GAS ENERGY CORPORATION. power generation business. Nov. 2001 The Company sells off its stock in CicoMart Co., Ltd. The Company acquires the shares of JAPAN GAS ENERGY Jan. 2014 The head ofce is moved to 2-10-1 Toranomon, Minato-ku, Tokyo. Apr. 1971 Capital is increased from ¥600 million to ¥1 billion. CORPORATION. Apr. 1977 To change the par value of its stock, the Company merges with Itochu Fuel Apr. 2004 The Company scraps its existing branch-offce system in favor of a May. 2014 The Company acquires stock in Osaka Car Life Group Co., Ltd. system of organization around business divisions. Jul. 2010 The Company submitted a notice of commencement of a power (today a consolidated subsidiary). Corporation, headquartered at 2-36 Tsurigane-cho, Higashi-ku, Osaka. producer and supplier (PPS) business May 2005 Takigawa Enex Co., Ltd. (currently Itochu Enex Home-Life Nishi-Nihon Feb. 2015 The company and Oji Green Resources Co., Ltd., a subsidiary of Oji Feb 1978 The Company is listed on the 2nd section of the Osaka Securities Oct. 2010 The Company launched an electric power retailing business. Exchange and the Tokyo Stock Exchange. Co., Ltd.) commences operation upon taking over business operations Holdings Corporation, formed a joint venture for power retailing, OJI- from Takigawa Industries Co., Ltd. Jan. 2011 The Company celebrates the 50th anniversary of its founding. ITOCHU ENEX POWER RETAILING CO., LTD. (“OJEX”) Sep. 1979 The Company is promoted to the 1st section of the Osaka Securities Exchange and the Tokyo Stock Exchange. Sep. 2005 The Company sells off its stock in Tokai Corporation. Mar. 2011 The Company acquires the shares of JEN Holdings Co., Ltd. to Mar. 2015 The Company acquires the shares of NISSHO PETROLEUM GAS break into the electricity and steam supply business for factories. CORPORATION. Jun. 1983 The Company moves its head ofce from Osaka to Tokyo. Oct. 2005 Kokura Enterprise Energy Co., Ltd. takes over the business of Kokura Enterprise Co., Ltd. and commences operations. Apr. 2011 Kohnan Fleet Co., Ltd. changes its name to Enex Fleet Co., Ltd. Oct. 2015 The company and ITOCHU INDUSTRIAL GAS CO.,LTD. Mar. 1995 The Company establishes Kyushu Chunen Co., Ltd. (currentconsolidated established PT.ITC ENEX INDONESIA to tackle the industrial gas subsidiary Enex Petroleum Sales Nishi-Nihon Co., Ltd.). Oct. 2005 The Itochu Enex Group adopts a single unified logo, the Enex Mark. Jan. 2012 The Company takes an equity stake in IP&E Palau Inc. and the Republic of Palau. business in INDONESIA. Feb 1996 Head ofce moves to 24-12 Meguro 1-chome, Meguro-ku, Tokyo. Apr. 2007 Ecore Co., Ltd., is founded by the consolidation of Itochu Enex Home- Life Kyushu and Idex Gas K.K. and commences operation May. 2012 The Company acquires the shares of Tokyo Toshi Service Apr. 2016 Start to electricity Supply Service for Households, “e-koto denki!” Oct 1997 The Company acquires stock in Tokai Corporation, which is in the Company (currently consolidated subsidiary) to break into the Apr. 2016 Invests and participates in LP gas sales business in the Philippines process of being reorganized. Sep. 2008 Itochu Enex Co., Ltd. acquires Kohnan Corporation's oil sales business and stock in Kohnan Fleet Corporation, and begins operating the heat supply business. Apr. 2017 Prot attributable to owners of parent surpasses 10 billion yen Dec. 1997 The Company acquires stock in Seibu Petroleum Corporation. acquired business. Oct. 2012 JEN Holdings, Co., Ltd (currently consolidated subsidiary) acquires all Oct. 2017 Sendai Power Station Co., Ltd. commences commercial operation of Apr. 1998 The Company's CicoMart arm is spun off to form CicoMart Co., Ltd. Sep. 2008 Head ofce is relocated to 4-1 Shibaura 3-chome, Minato-ku, Tokyo. shares of CEF Konbumori Wind Farm Co., Ltd., thereby expanding its its thermal power station wind power generation business. Oct. 2000 Tokai Corporation's bankruptcy reorganization proceedings are Oct. 2017 Establishes ENEARC Co., Ltd. declared complete by the overseeing court. Apr. 2013 Power & Utility Division is set up This is , ENEX Established advantage through the value-creation way A Rich Customer Base Ability to strengthen the customer base This is , ENEX No.1 Energy Trading Company The power of the Itochu Enex Group’s “optimization” that flexibly responds to changes The number of CSs The number of LP gas outlets Optimization for consumer needs Optimization of organization and Our Vision To increase responsiveness to the changing societal and lifestyle human resources needs, and offering a wide range of value required by customers. Building of an organization that is responsive to changing needs, and 1,800 CSs 2,700 outlets development and utilization of human resources who can generate creative and flexible thinking. Change in business activities as shown by profit composition ratio of Integrated the business base of petroleum products and LP gas operations Service station that our group has nationwide as CS (Carlife Staion) LP gas outlets that our group has nationwide on April 1, 2018 (including our brand, “Car Enex Brand CSs” approx. 400) Strategic approach to the customer base held in Strategy local communities CSs of convenient CARLIFE STADIUM Automotive gas stations that supply LP gas to Before The Home-Life Division and the Life & Industrial Energy Division were 400 CSs Rent-a-Car Service (As of April 1, 2018) 38 stations LP gas vehicles (including buses and taxies) Petroleum 75% consolidated under the “Energy & Logistics Group.” Taking our lead Gas 25% ¥9.0 billion from consumers, we will build a consumer-oriented structure, and offer a variety of energy products and services. The number of households The number of facilities Before Now Segment Fiscal year ended March 2012 Industrial Home-Life Life Energy Energy & Logistics Group million Fuel trading company handling petroleum and gas Energy 1.5 households 3,500 facilities Households we supply LP gas and town gas that our group has Facilities of corporate customers providing energy and materials Management nationwide (Gasoline, Diesel, kerosene, residual oil, LNG, and electric power) Car Factories, Factories, Homes Car users business Homes users business sites sites Now Petroleum 44% The number of contracts (electric power for households) The electric power sales volume ranking Gas 19% Business optimization Electricity 26% ¥17.2 billion Automotive 11% Seeking to make efficient use of managerial resources, we have Data Section established and put into operation a supply chain optimized for demand.