Slides
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Presentation on Results for the 2nd Quarter FY2025 November 11, 2025 Idemitsu Kosan Co.,Ltd.
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Table of Contents ◼ Topics ◼ Highlights ◼ Results for the 2Q FY2025 ◼ Forecasts for FY2025 ◼ Income and Expenses Structure of Petroleum Segment ※Adding this section to help you better understand our financial results ◼ Reference ✓ Financial results ✓ Volume ✓ Crude/product price and operation ✓ Business overview 2
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◼Topics 3
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Topics – Roadmap of Solid Electrolyte ✓ Study of solid electrolyte is in progress as roadmap schedule ✓ Next step is investment decision of pilot plant (to be done within FY2025) 4
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Topics(1/3) 5 ◼ Situation of Nghi Son Refinery in Vietnam ✓ For FY 2025, we expect continuous high utilization rates and profitability at the operating level. However, due to significant interest burden, we anticipate a net loss ✓ Equity income/loss for FY 2025 is expected to be zero due to the provisions for doubtful accounts in prior years ✓ As for the sponsors loan, which accounts for approximately 60% of the interest burden, final discussions among sponsors are underway to reach a decision within this fiscal year on interest reduction measures such as shifting to simple interest. ✓ NSRP will also pursue measures to improve its financial position, including diversifying crude oil procurement sources, securing power supply from external sources, and selling fuel for self-generation, aiming to achieve a net profit around 2030. ✓ No negative consolidated impact is expected at least until 2030 ◼ Consolidation of Fuji Oil Company as a Subsidiary ✓ To streamline decision-making and establish a production system with a long-term perspective, we made Fuji Oil Co., Ltd. (hereinafter “Fuji Oil”) a consolidated subsidiary through a tender offer on November 5. ✓ At present, the confirmed synergies amount is ¥3 to 4 billion per year, but we will further strengthen group-wide production system optimization and the mutual utilization as well as centralization of infrastructure. （Link to our disclosure document） https://ssl4.eir-parts.net/doc/5019/tdnet/2702153/00.pdf
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Topics(2/3) ◼ Mitsui Chemicals, Idemitsu Kosan, and Sumitomo Chemical Enter Into MOU on Integration of Sumitomo Chemical’s PP and LLDPE Businesses into Prime Polymer, Aiming to Strengthen the Competitiveness of the Domestic Polyolefin Business ✓ Mitsui Chemicals, Inc. (hereinafter “Mitsui”) and Sumitomo Chemical Co., Ltd. (hereinafter “Sumitomo”) have reached a basic agreement to integrate the polyolefin business of Prime Polymer Co., Ltd., a joint venture between our company and Mitsui, with Sumitomo's domestic PP business and LLDPE*1 business. （Link to our disclosure document） https://ssl4.eir-parts.net/doc/5019/tdnet/2685684/00.pdf ◼ World's Largest Scale Black Pellet Plant Starts Commercial Operation Vietnam's First Commercial Plant With 120,000 ton Capacity to Support Decarbonization ✓ Commenced commercial operation of its newly constructed plant in Gia Lai Province (formerly Binh Dinh Province), Vietnam, to produce black pellets ("BP"), a type of biomass fuel, on October 8 ✓ This plant has one of the world's largest annual production capacity with an annual output of 120,000 tons. （Link to our disclosure document） https://ssl4.eir-parts.net/doc/5019/tdnet/2695592/00.pdf *1 Linear Low-Density Polyethylene Photo: BP plant of Idemitsu Green Energy Vietnam, a wholly-owned subsidiary of Idemitsu 6
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◼ Our company's space-grade CIGS solar cells have been installed on the SDX demonstration unit aboard JAXA's new HTV-X1 space station supply vehicle ✓ Our company's space-grade CIGS*1 solar cells*2 have been installed on the exposed section*3 of the “SDX” in-orbit demonstration for next-generation space solar cells conducted by the Japan Aerospace Exploration Agency (JAXA). ✓ Through SDX, we verified the characteristics and power generation stability of space-grade CIGS solar cells in outer space. （Link to our disclosure document, Japanese only） https://www.idemitsu.com/jp/news/2025/251017.pdf （Employee interview, Japanese only）https://www.idemitsu.com/jp/company/interview/innovation_center.html Topics(3/3) *1 CIGS: A compound semiconductor formed from the initial letters of Cu (copper), In (indium), Ga (gallium), and Se (selenium) *2 Solar cell: The smallest unit of a solar panel *3 Exposed section: The part of a spacecraft directly exposed to outer space for demonstrations and other purposes Conceptual image of technology demonstration utilizing HTV-X1 (C)JAXA Sample of the CIGS solar cell for space applications developed by our company 7
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◼Highlights 8
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Results for 2Q FY2025 9 114 99.988.4 77.4 ◼ Results for 2Q FY2025 (exc. Inventory impact)(Billion Yen) Operating + Equity Income FY2024 FY2025 ✓ Both operating + equity income and net income decreased, primarily due to deteriorating chemical market conditions and falling coal prices ✓ Progress toward the earnings forecasts announced in May is proceeding at 60% and 65%, respectively ✓ This fiscal year features numerous large-scale regular maintenances, but the Petroleum business is exceeding last year's performance due to the solid domestic margins ✓ The impact of Trump tariffs occurred in Q1 as anticipated at the beginning of current FY ✓ Compared to the forecasts in May, Petroleum business has been firmer than expected although the outlook for Basic Chemicals has worsened ✓ Full-year forecasts have been revised upward by ¥28 billion for operating + equity income and by ¥25 billion for net income ◼ Forecasts for FY2025 (exc. Inventory impact)(Billion Yen) 147 120 175 145 5/13 Forecast Revised Forecast Net Income Operating + Equity Income Net Income
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Profit exc. temporary factors based on FY2025 forecast ◼ Net income exc. inventory impact (Billion Yen) Announced in May The latest Forecast Temporary factors Time-lag in petroleum Time-lag and inventory impact in basic chemical unexploded ordnance disposal (ROE：7%) (ROE：8.5%) (ROE：10%) (20) (5) (3) Impact of drop in crude oil price 10 The latest Forecast (exc. temporary factors) 120 25 145 173 ✓ ROE on net income exc. inventory effects for the revised full-year forecast is 8.5%. While it has not reached 10% at this point, normalizing the decline in crude oil prices and external temporary factors, the profit level is equivalent to 10% ✓ Through initiatives to improve challenging businesses and strengthen profitability in existing businesses (such as refinery utilization enhancement and overseas trading), we aim to achieve a 10% ROE and a PBR of 1x at an early stage
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44.7 46.1 44.0 134.835.0 40.0 30.0 205.0 100.079.7 186.1 74.0 339.8 2023 2024 2025 2023-2025 12 16 18 18 12 16 18 1824 32 36 36 2022 2023 2024 2025 Results for 2Q FY2025 ◼ Shareholder returns ➢ Dividends (¥/share) ¥18/share both interim and FY end ➢ Total share folder return (¥ billions) Decided ¥30.0 share buyback based on revised FY2025 forecast dividends share buyback Total shareholder return ratio FY end interim FY end forecast 41％ 149％ 51% 74% *share buyback for revamp of the capital structure 〈Policy in current Mid-term plan〉 Minimum ¥36s/share * 11 〈Policy in current Mid-term plan〉 Over 50% total shareholder return ratio
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◼Results for 2Q FY2025 12
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Market Conditions Dubai Crude Oil Price Exchange Rate (USD)[USD/bbl] [JPY/USD] Australian Coal Spot Price[USD/ton] FY2025 FY2024 13 FY24：78.5 USD/bbl FY25 the latest forecast ：66.7 USD/bbl FY24：134.8 USD/ton FY25the latest forecast ：105.8 USD/ton FY24：152.6 JPY/USD FY25 the latest forecast ：145.5 JPY/USD 155.9 149.4 152.4 152.6 144.6 147.5 140.0 142.0 144.0 146.0 148.0 150.0 152.0 154.0 156.0 158.0 160.0 4 5 6 7 8 9 10 11 12 1 2 3 85.3 78.3 73.6 76.9 66.9 70.1 60.0 65.0 70.0 75.0 80.0 85.0 90.0 4 5 6 7 8 9 10 11 12 1 2 3 125.8 135.6 140.3 137.7 104.6 100.5 108.7 90.0 100.0 110.0 120.0 130.0 140.0 150.0 1 2 3 4 5 6 7 8 9 10 11 12
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Overview ◼ Crude Oil/Coal/Exchange Rate ◼ Consolidated Income Statement(Summary) [USD/bbl, USD/ton, JPY/USD] *Australian coal spot prices are averages based on the calendar year (Jan-Jun). *Gross average method of inventory valuation *Inventory impact represents the impact of inventory valuation and the reduction in book value of inventory assets [¥ billions] 2Q FY2024 2Q FY2025 Change Crude Oil (Dubai) 81.8 68.4 (13.4) (16.4%) Australian Coal Spot Price* 130.7 102.5 (28.2) (21.5%) Exchange Rate (TTM) 152.6 146.0 (6.6) (4.3%) 2Q FY2024 2Q FY2025 Change Net Sales 4,504.0 3,805.7 (698.4) (15.5%) Operating Income 97.3 25.8 (71.5) (73.4%) Inventory impact (0.6) (59.5) (58.9) － Equity Income 16.1 3.1 (13.0) (81.0%) Operating Income + Equity Income 113.4 28.9 (84.5) (74.5%) Excluding inventory impact 114.0 88.4 (25.6) (22.4%) Ordinary Income 124.9 35.3 (89.6) (71.8%) Extraordinary Income/Losses 5.9 6.0 +0.1 +1.8% Net Income Attributable to Owners of the Parent 99.4 36.1 (63.3) (63.7%) Excluding inventory impact 99.9 77.4 (22.5) (22.5%) 14
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Segment Information ◼ Operating ＋ Equity Income (exc. inventory impact, y-o-y) 15 114.0 7.7 (11.2) 3.0 5.1 (2.0) (23.7) (4.6) 88.4 2Q FY 2024 2Q FY 2025 [¥/ billion] [(25.6)] Basic Chemicals Functional Materials Power and Renewables Resources [(25.6)] Coal Others Petroleum Oil E&P
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Segment Information ◼ Factors Affecting Operating + Equity Income (exc. inventory impact, y-o-y) 16 2Q FY2024 2Q FY2025 Change Factors（exc. inventory impacts） Petroleum 62.8 70.5 +7.7 +：time-lag +13.1 [previous year(27.1)→this year(14.0)] Domestic margin+13.9, Export +6.2[volume (0.8), price +7.0] ()：Cost increase mainly due to shutdown maintenance (25.5) Basic Chemicals 3.4 (7.7) (11.2) +：volume +4.5, time-lag+0.8[previous year(3.1)→this year(2.3)] , others +2.9 ()：margin (19.4)[PX,MX (5.9), SM etc. (13.5)] Functional Materials 16.0 19.0 +3.0 +：Lubricants [favorable in overseas business], Agri-life[addition of Agro-Kanesho to the group etc.] ()：Functional Chemicals[deteriorate margin due to capacity expansion in China] Power and Renewables (5.8) (0.7) +5.1 +：Power[reversal of equipment problems in last year], Solar, Overseas Resources* 42.8 17.1 (25.6) Oil E&P 9.9 8.0 (2.0) +：Operational costs ()：price, Volume Coal 32.8 9.2 (23.7) +：exchange rate +0.5 ()：price (18.9), Volume (3.7), Costs (1.6) Others (5.1) (9.6) (4.6) ()：increase cost for the new businesses Total 114.0 88.4 (25.6) *Fiscal year for IIN in Oil E&P and Coal included in the Resources Segment end in Dec.
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Balance Sheet [¥ billions] Net D/E ratio 0.62 0.66 +0.04 Net Interest- bearing debt 1,071.2 1,139.9 +68.7 Equity ratio 36.0% 38.1% 2.1% 3/31/2025 9/30/2025 Change 3/31/2025 9/30/2025 Change Cash and Deposits 165.8 122.2 (43.6) Total Current Liabilities 2,097.4 1,796.9 (300.5) Receivables, Inventory, etc. 2,484.1 2,250.6 (233.5) Total Fixed Liabilities 940.5 978.5 +38.0 Total Current Assets 2,649.9 2,372.8 (277.1) Total Liabilities 3,037.9 2,775.4 (262.5) Tangible Fixed Assets 1,374.0 1,390.4 +16.4 Shareholders’ Equity and Other Comprehensive Income 1,720.4 1,726.4 +6.0 Other Fixed Assets 751.7 762.7 +11.0 Noncontrolling Interests 17.3 24.1 +6.8 Total Fixed Assets 2,125.7 2,153.1 +27.4 Total Net Assets 1,737.7 1,750.5 +12.8 Total Assets 4,775.6 4,525.9 (249.7) Total Liabilities and Net Assets 4,775.6 4,525.9 (249.7) 17
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Cash Flows Cash Flow from Operating Activities 75.6 Net Income before tax 41.3 Depreciation Expense 50.5 Change in Working Capital 35.2 Other (51.4) Cash Flow from Investing Activities (99.7) Purchase of tangible fixed assets (61.5) Other (38.2) Cash Flow from Financing Activities (8.2) Change in borrowings 16.4 Dividend payments and share buyback (22.1) Other (2.5) Translation gains/losses 2.0 Change in cash and deposits (30.3) Cash and Cash Equivalents 120.6 18
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◼Forecasts for FY2025 19
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Forecasts for FY2025 ◼ Crude Oil/Coal/Exchange Rate ◼ Consolidated Income Statement(Summary) [USD/bbl, USD/ton, JPY/USD] *Australian coal spot prices are averages based on the calendar year (Jan-Dec). *Gross average method of inventory valuation *“Inventory impact” represents the impact of inventory valuation and the reduction in book value of inventory assets [¥ billions] 5/13 Forecast Revised Forecast Change Assumptions (from Oct.) Crude Oil (Dubai) 65.0 66.7 +1.7 +2.6% 65.0 Australian Coal Spot Price * 95.0 104.6 +9.6 +10.1% 105.0 Exchange Rate (TTM) 145.0 145.5 +0.5 +0.3% 145.0 5/13 Forecast Revised Forecast Change Net Sales 7,900.0 7,950.0 +50.0 +0.6% Operating Income 37.0 68.0 +31.0 +83.8% Inventory impact (100.0) (100.0) ±0 － Equity Income 10.0 7.0 (3.0) (30.0%) Operating Income + Equity Income 47.0 75.0 +28.0 +59.6% Excluding inventory impact 147.0 175.0 +28.0 +19.0% Ordinary Income 56.0 85.0 +29.0 +51.8% Extraordinary Income/Losses 9.0 11.0 +2.0 +22.2% Net Income Attributable to Owners of the Parent 50.0 75.0 +25.0 +50.0% Excluding inventory impact 120.0 145.0 +25.0 +20.8% 20
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147.0 50.0 (16.0) (3.0) (1.0) 2.0 (2.0) (2.0) 175.0 Segment Information ◼ Operating + Equity Income (exc. inventory impact, Compared to the 5/13 forecasts) 5/13 Forecast Revised Forecast[+28.0] [¥/ billion] Basic Chemicals Functional Materials Power and Renewables Resources [0.0] Coal Others Petroleum Oil E&P 21
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5/13 Forecast Revised Forecast Change Factors（exc. inventory impacts） Petroleum 90.0 140.0 +50.0 +：Domestic margin+35.0, others+15.0[mainly non-core products] Basic Chemicals 6.0 (10.0) (16.0) ()：time-lag/inventory impacts(7.0), margin(40)[PX,MX +6.0, SM etc. (10.0)] volume decrease by unexploded ordnance disposal(3.5) others (1.5) Functional Materials 36.0 33.0 (3.0) ()：Functional Chemicals[deteriorate margin due to capacity expansion in China] Power and Renewables 1.0 0.0 (1.0) ()：Power[equipment problems] Resources* 34.0 34.0 ±0.0 Oil E&P 11.0 13.0 +2.0 +：Operational costs etc. Coal 23.0 21.0 (2.0) ()：Volume etc. Others (20.0) (22.0) (2.0) Total 147.0 175.0 +28.0 Segment Information [¥/ billion] *Fiscal year for Oil E&P and Coal included in the Resources Segment end in Dec. 22 ◼ Factors Affecting Operating + Equity Income (exc. inventory impact, y-o-y)
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Investment 5/13 Forecast FY2025 The latest forecast FY2025 CN 73.0 58.0 Growth 248.0 160.0 Strategic 321.0 218.0 Maintenance 125.0 115.0 Total 446.0 333.0 ✓ The latest FY2025 forecast decreases by ¥113 billion due to postpone some M&As and cautious approach to decision-making on new decarbonization- related investments in light of changing circumstances. [¥/ billion] ※Amount based on expenditures 23
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◼Income and Expenses structure of Petroleum Segment 24
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Premise of income and expenses of Petroleum segment 2Q FY2025 Net Sales 3,805.7 Operating Income 25.8 Inventory impact (59.5) Equity Income 3.1 Operating Income + Equity Income 28.9 Excluding inventory impact 88.4 Ordinary Income 35.3 Extraordinary Income/Losses 6.0 Net Income Attributable to Owners of the Parent 36.1 Excluding inventory impact 77.4 Our company is structurally susceptible to inventory impacts and temporary time-lags arising from fluctuations in crude oil prices. ◼ Consolidated Income Statement (Summary) 25 ✓ Our target is based on excluding inventory impacts income due to 70 day‘s mandatory crude oil stockpiling requirement please refer to P27 for the structure of inventory impact ✓ Temporary time-lag arising from fluctuations in crude oil price is included in excluding inventory impacts imcome ✓ Please refer to P26 for business structure of Petroleum Segment please refer to P27 for the structure of time-lag [¥/ billion]
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Points of Petroleum Segments Crude oil purchase Refining Sales ◆ domestic ◆ ExportsDelivery from Middle East Approximately 1months 【Price】 【Volume】 Crude cost Based on crude oil price when it is loaded at Middle East Sales Price Refer to current crude price Point➀time-lag Production Domestic Sales Export Surplus amount Point➂Utilization Crude oil price as of loading at Middle East Point➁sales margin (Sales price minus Crude price) Rise in crude oil price :positive Drop in crude oil price :negative Robust Margin ＝Stable profit Improving utilization＝positive due to increasing export volume or decreasing product purchase volume Product purchase 26 Crude oil price as of sales timing
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Structure of Time-lag and Inventory Impact Costs：based on crude oil price in Mar( Sales Price：refer to crude oil price in Apr Crude oil price variance between Apr and Mar is time-lag Rise in crude oil price：positive impact Drop in crude oil price：negative impact Delivery dates Approximately 1month 70 day‘s mandatory 70 day’s crude oil stockpiling requirement Cost including inventory （cost in financial statement） Cost excluding inventory （close to actual payment） Cost excluding inventory：crude arriving in Apr Cost including inventory：crude including stockpile before Mar Variance between cost excluding inventory and cost including inventory is inventory impacts Rise in crude oil price：positive inventory impact Drop in crude oil price：negative inventory impact Time-lag Inventory impacts Stockpile Mar Purchase and Loading crude oil Apr Refining and sales Arriving this month Example) impact in Apr 27
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Initiatives to Improve Refinery Utilization Rates ◼ Refinery Utilization Rates（BSD*1） 28 ✓ Through the implementation of the four key measures, the utilization rate for current FY improved compared to last FY ✓ Currently developing a roadmap to achieve stable high utilization rates for the next medium-term management plan. ◼ Four Key Measures for Stable and Safe Operations *1 BSD: exc. regular maintenances，*2 CDF：Cognite Data Fusion 78% 82% 78% 92% 85% 83% 70% 75% 80% 85% 90% 95% 1Q 2Q 3Q 4Q Current FY Last FY 1. Enhancing Safety Management ✓ Strengthening the implementation of process safety management 2. Enhancing Equipment Management ✓ Ensuring equipment integrity through damage factor review ✓ Improving equipment reliability through critical equipment review 3. Enhancing Operational Management ✓ Deepening HR aspects through strengthening education and training ✓ Improving on-site responsiveness through enhanced OJT training, emergency response drills, etc. 4. Promoting Digital Technology ✓ Utilizing centralized data, operational efficiency, and advanced capabilities through our proprietary maintenance support system and CDF*2 utilization
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◼Reference 29
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0 200 400 600 800 1,000 1,200 2022年4月 2022年10月 2023年4月 2023年10月 2024年4月 2024年10月 2025年4月 2025年10月 0.00 0.20 0.40 0.60 0.80 1.00 2022年4月 2022年10月 2023年4月 2023年10月 2024年4月 2024年10月 2025年4月 2025年10月 [JPY] [x] Stock Price PBR Financial Results Stock Price/PBR Performance April 2022 October 2022 April 2023 October 2023 October 2024 October 2025April 2025April 2024 April 2022 October 2022 April 2023 October 2023 October 2024 October 2025April 2025April 2024 30
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Financial Results ◼ Net Sales by segment Financial Results [¥ billions] *Fiscal year for IIN in Oil E&P and Coal included in the Resources Segment end in Dec. 2Q FY2024 2Q FY2025 Change Petroleum 3,750.7 3,167.8 (583.0) (15.5%) Basic Chemicals 294.6 235.2 (59.4) (20.2%) Functional Materials 250.8 247.9 (2.9) (1.1%) Power and Renewable Energy 65.5 51.6 (13.9) (21.2%) Resources* 136.0 95.6 (40.4) (29.7%) Oil Exploration and Production 21.7 18.8 (2.9) (13.4%) Coal 114.3 76.8 (37.5) (32.8%) Others/Reconciliation 6.3 7.6 +1.3 +20.0% Total 4,504.0 3,805.7 (698.4) (15.5%) 31
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Financial Results ◼ Quarterly segment income (cumulative, exc. inventory impact) [¥ billions] Financial Results 32 FY2024 FY2025 1Q 2Q 3Q 4Q 1Q 2Q Petroleum 47.8 62.8 109.6 152.0 20.6 70.5 Equity income 5.1 10.8 15.3 13.7 2.0 0.4 Basic Chemicals 7.5 3.4 (4.2) (8.0) (4.5) (7.7) Equity income (0.3) 0.3 1.0 2.0 1.2 1.2 Functional Materials 7.8 16.0 22.7 28.2 9.3 19.0 Equity income 0.1 0.3 0.3 0.3 (0.0) (0.3) Power and Renewable Energy (3.0) (5.8) (7.1) (12.3) (0.4) (0.7) Equity income (0.3) (0.6) (0.7) (0.9) 0.3 (0.3) Resources ‐Oil Exploration and Production 6.5 9.9 13.6 18.7 4.5 8.0 Equity income 3.1 5.6 7.1 9.2 1.6 3.5 -Coal 18.3 32.8 46.0 58.7 7.4 9.2 Equity income (0.0) (0.1) (0.2) (0.3) (0.0) (0.0) Others/Reconciliation (2.8) (5.1) (12.1) (22.7) (3.1) (9.6) Equity income (0.0) (0.2) (0.7) (1.5) (0.6) (1.4) Total 82.2 114.0 168.5 214.7 33.8 88.4 Equity income 7.6 16.1 22.2 22.6 4.3 3.1
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Financial Results ◼ Quarterly segment income (Q on Q, exc. inventory impact) [¥ billions] Financial Results 33 FY2024 FY2025 1Q 2Q 3Q 4Q 1Q 2Q Petroleum 47.8 14.9 46.9 42.4 20.6 49.8 Equity income 5.1 5.7 4.4 (1.5) 2.0 (1.5) Basic Chemicals 7.5 (4.1) (7.6) (3.8) (4.5) (3.2) Equity income (0.3) 0.6 0.7 1.0 1.2 0.0 Functional Materials 7.8 8.2 6.7 5.6 9.3 9.7 Equity income 0.1 0.2 0.0 (0.0) (0.0) (0.3) Power and Renewable Energy (3.0) (2.8) (1.3) (5.2) (0.4) (0.3) Equity income (0.3) (0.3) (0.0) (0.3) 0.3 (0.6) Resources ‐Oil Exploration and Production 6.5 3.4 3.7 5.1 4.5 3.5 Equity income 3.1 2.6 1.5 2.1 1.6 1.9 -Coal 18.3 14.6 13.2 12.7 7.4 1.8 Equity income (0.0) (0.0) (0.1) (0.1) (0.0) (0.0) Others/Reconciliation (2.8) (2.3) (7.1) (10.5) (3.1) (6.6) Equity income (0.0) (0.2) (0.5) (0.8) (0.6) (0.8) Total 82.2 31.9 54.5 46.2 33.8 54.6 Equity income 7.6 8.5 6.1 0.4 4.3 (1.3)
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Sales Volume ◼ Petroleum *Export includes bond sales of jet fuel and heavy fuel oil C Volume [thousand KL,％] 2Q FY2024 2Q FY2025 Change Gasoline 6,392 6,240 (151) (2.4%) Naphtha 160 438 +278 +174.0% Jet Fuel 1,247 1,217 (30) (2.4%) Kerosene 665 666 +1 +0.2% Diesel Oil 5,019 4,838 (182) (3.6%) Heavy Fuel Oil A 1,322 1,253 (69) (5.2%) Heavy Fuel Oil C 833 797 (36) (4.3%) Total Domestic Sales Volume 15,637 15,448 (189) (1.2%) Exported Volume 2,548 2,737 +189 +7.4% Total Sales Volume 18,185 18,185 (0) (0.0%) 34
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Sales Volume ◼ Basic Chemicals ◼ Functional Materials ◼ Power/Renewable Energy Volume [kt,%] [KKL,kt,%] [Mkwh,%] *Lubricants include sales overseas 2Q FY2024 2Q FY2025 Change Basic Chemicals 1,478 1,477 (1) (0.1%) 2Q FY2024 2Q FY2025 Change Lubricants 542 531 (11) (2.0%) Performance Chemicals 242 207 (35) (14.5%) 2Q FY2024 2Q FY2025 Change Retail Power Sales 855 925 +70 8.2% 35
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Production Volume ◼ Resources (Oil E&P) ◼ Resources (Coal) Volume [KBOED,%] *The numbers reflect our rights and ownership ratios based on our equity share *The numbers reflect our rights and ownership ratios *The number shows Jan-Jun volume as fiscal year ends in Dec. [kt,%] 2Q FY2024 2Q FY2025 Change Vietnam 14.0 13.5 (0.5) (3.6%) Norway 12.9 11.0 (1.9) (14.7%) Total('000BOED) 26.9 24.5 (2.4) (8.9%) Total('000BOE) 4,908 4,462 (446) (9.1%) 2Q FY2024 2Q FY2025 Change Coal 2,924 2,634 (290) (9.9%) *The numbers shows Jan-Jun volume for Norway while Apr-Sep volume for Vietnam 36
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Sales Volume Forecast ◼ Petroleum *Export includes bond sales of jet fuel and heavy fuel oil C Volume [thousand KL,％] 5/13 Forecast Revised Forecast Change Gasoline 12,060 12,100 +40 +0.3% Naphtha 590 620 +30 +5.1% Jet Fuel 2,450 2,390 (60) (2.4%) Kerosene 3,350 3,340 (10) (0.3%) Diesel Oil 9,900 9,800 (100) (1.0%) Heavy Fuel Oil A 2,990 2,990 - - Heavy Fuel Oil C 1,720 1,710 (10) (0.6%) Total Domestic Sales Volume 33,060 32,950 (110) (0.3%) Exported Volume 7,090 6,720 (370) (5.2%) Total Sales Volume 40,150 39,670 (480) (1.2%) 37
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5/13 Forecast Revised Forecast Change Lubricants 1,080 1,080 - - Performance Chemicals 510 440 (70) (13.7%) Sales Volume Forecast ◼ Basic Chemicals ◼ Functional Materials ◼ Power/Renewable Energy Volume [kt,%] [KKL,kt,%] [Mkwh,%] *Lubricants include sales overseas 5/13 Forecast Revised Forecast Change Basic Chemicals 3,400 3,270 (130) (3.8%) 5/13 Forecast Revised Forecast Change Retail Power Sales 1,810 1,810 - - 38
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5/13 Forecast Revised Forecast Change Vietnam 13.4 13.3 (0.1) (0.7%) Norway 11.4 10.9 (0.5) (4.4%) Total('000BOED) 24.8 24.2 (0.6) (2.4%) Total('000BOE) 9,060 8,850 (210) (2.3%) Production Volume Forecast ◼ Resources (Oil E&P) ◼ Resources (Coal) Volume [KBOED,%] *The numbers reflect our rights and ownership ratios based on our equity share *The numbers reflect our rights and ownership ratios *The number shows Jan-Jun volume as fiscal year ends in Dec. [kt,%] 5/13 Forecast Revised Forecast Change Coal 6,140 5,910 (230) (3.7%) *The numbers shows Jan-Dec volume for Norway while Apr-Mar volume for Vietnam 39
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Assumption Items Assumption （2H FY25 ） Range of fluctuation Segment Operating income impact (¥ billions) Excluding inventory impact Crude oil price 65.0$/bbl ±10$/bbl Petroleum ±32 Singapore product margin ー ±5$/bbl ±14 Exchange rate 145.0¥/$ ±5¥/$ ±8 Thermal coal price 105.0$/t ±10$/t Resources (Coal） ±1 Inventory impact Crude oil price 65.0$/bbl ±10$/bbl Petroleum ±68 Exchange rate 145.0¥/$ ±5¥/$ ±16.5 Sensitivity 40 ◼ Major items affecting operating profit by changes in assumptions (3-4Q) * In the petroleum segment, only performance impacts on products made in domestic refineries are shown. In addition to the above, income will also be affected by sales of overseas affiliates * 3-month impact during shown for the resources segment (coal), as its fiscal year ends in Dec. The assumption is averaged from Oct to Dec.
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214.7 (12.0) (2.0) 4.8 12.3 (5.7) (37.7) 0.7 175.0 Segment Information ◼ Operating ＋ Equity Income (exc. inventory impact, The latest forecast vs previous year) 41 FY 2024 Revised Forecast FY 2025 [¥/ billion] [(39.7)] Basic Chemicals Functional Materials Power and Renewables Resources [(43.4)] Coal Others Petroleum Oil E&P
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Crude Oil Prices(Dubai) [USD/bbl] Crude price 42 10 30 50 70 90 110 130 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25
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Gasoline-Crude Oil(Domestic spot price and spread) [Spread：JPY/L][Price :JPY/L] Product market price 43 0 5 10 15 20 25 30 0 20 40 60 80 100 120 140 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Spread Crude oil Gasoline
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Diesel-Crude Oil(Domestic spot price and spread) [Spread：JPY/L][Price :JPY/L] Product market price 44 0 5 10 15 20 25 30 0 20 40 60 80 100 120 140 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Spread Crude oil Diesel oil
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Gasoline-Crude Oil(Singapore spot price and spread) [Spread：USD/bbl][Price :USD/bbl] Product market price 45 -5 0 5 10 15 20 25 30 35 40 0 20 40 60 80 100 120 140 160 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Spread Dubai Gasoline
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Diesel-Crude Oil(Singapore spot price and spread) [Spread：USD/bbl][Price :USD/bbl] Product market price 46 0 10 20 30 40 50 60 70 0 20 40 60 80 100 120 140 160 180 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Spread Dubai Diesel Oil
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Para-Xylene, Mixed Xylene-Naphtha (price and spread) [Spread：USD/ton][Price :USD/ton] Product market price 47 0 100 200 300 400 500 600 0 200 400 600 800 1,000 1,200 1,400 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 PX spread Mx spread Naptha PX MX
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0 100 200 300 400 500 600 700 800 0 200 400 600 800 1,000 1,200 1,400 1,600 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 SM spread Naptha SM Styrene Monomer-Naphtha (price and spread) [Spread：USD/ton][Price :USD/ton] Product market price 48
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*1 BCD：inc. regular maintenances, BSD： exc. regular maintenances Operational Data Operation FY 2024 BCD*1 76％ BSD*1 82% 1Q FY2024 2Q FY2024 3Q FY2024 4Q FY2024 1Q FY2025 2Q FY2025 66% 72% 78% 89% 78% 72% 78% 82% 78% 92% 85% 83% FY 2021 FY 2022 FY 2023 FY 2024 2Q FY2025 6,216 6,136 5,986 5,918 5,882 ◼ Number of Service Stations ◼ Refinery Utilization（QoQ） 49
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*1 Capacity as of July 2024. Refining operation at Yamaguchi Refinery (120KBD) was terminated in March 2024. 968 KBD when adding the refining capacity of Fuji Oil, Co.,Ltd. with which a petroleum products trade agreement has been signed *2 excluding Nghi Son’s capacity *3 Bond jet fuel and Bond heavy fuel oil C are included in the exports ∎ Functional Materials Segment (Lubricants, Performance Chemicals, Electronic Materials, Bitumen (High Performance Asphalt), Agri life, Lithium Solid Electrolytes) Lubricants (sales volume):1.1 mil KL/year Engineering plastics(sales volume):200,000 tons/year OLED materials(production capacity): 26 tons/year Overview of the Company FY2024, actual or as of the end of March 2025 ∎ Petroleum Segment Refining Capacity 825 KBD *1,2) Domestic fuel oil sales volume 34 million KL/year *3) Number of service stations 5,900 ∎ Basic Chemicals Segment (Production Capacity*2) ) Ethylene 1 mil tons/year Para-Xylene 0.84 mil tons/year Mixed Xylene 0.69mil tons/year Styrene monomers 0.79 mil tons/year ∎ Power and Renewable Energy Segment Power generation capacity 1.93GW - Renewable energy 0.82GW ∎ Resources Segment Crude oil production 26,000 BD Thermal coal production 5.79 mil tons/year Business Overview 50
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Operating Company Refinery Refining Capacity RH FCC RFCC FLG Equity Ratio Japan Idemitsu Hokkaido 140 42 33 Kosan Chiba 195 40 45 Aichi 165 60 50 Showa Yokkaichi Yokkaichi 255 45 61 75.0% Sekiyu Toa Oil Keihin 70 42 27 100.0% 825 187 42 189 27 Overseas Nghi Son Refinery Nghi Son *1,2 200 105 80 35.1% and Petrochemical LLC （Thanh Hoa, Vietnam） 200 105 80 Petroleum Segment [KB/D] *1 Capacity before equity ratio reflection *2 Refining operation at Yamaguchi Refinery (120KBD) was terminated in March 2024. *3 Capacity as of September 2024. Business Overview 51
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Basic Chemicals Segment [mil tons/year] Operating Company Equity Ratio Ethylene Para-Xylene Mixed Xylene Styrene Monomer Japan Idemitsu Kosan Chiba 0.374 0.265 0.210 Aichi 0.357 0.170 Tokuyama 0.623 0.214 0.340 Showa Yokkaichi Yokkaichi 0.518 75.0% Sekiyu Total 0.997 0.836 0.688 0.550 Overseas Idemitsu SM Pasir Gudang 0.240 70.0% (Malaysia) Sdn. Bhd. （Johor, Malaysia） Nghi Son Refinery Nghi Son 0.700 35.1% and Petrochemical LLC （Thanh Hoa,Vietnam） Total 0.700 0.240 Business Overview *1 Capacity before equity ratio reflection *2 Capacity as of July 2024. 52
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Lubricants Performance Chemicals ◆Product categories ・Automotive lubricants (engine oil, etc.) ・Grease ・Industrial lubricants (hydraulic actuation oil, cutting oil, etc.) ◆Product categories ・Engineering plastics, adhesives materials, solvents and functional materials ◆Major products, applications, features ・Engineering plastics (Product) PC/Polycarbonates ◆Global business with a focus on automotive lubricants ・#8 global share ・Over 50% overseas sales ◆R&D centers ・Japan and overseas (US, China, etc.) (Applications) smartphones, lenses, automotive lights, etc. (Features) highest impact resistance among plastics (Product) SPS/ Syndiotactic Polystyrene resin (Applications) automotive electronic parts, kitchen appliances, etc. (Features) lightweight and offers excellent heat resistance, electrical properties, chemical resistance, and hydrolysis resistance ・Adhesive materials (Product) Hydrogenated petroleum resin (Applications) Tackifier for hot-melt adhesives Functional Materials Segment (1/2) ◆Global lubricant network ・Manufacturing/sales/R&D network in 28 countries ・Strengthening existing facilities and developing new facilities Business Overview Daytime Running Lamp （DRL） Automotive parts Disposable diapers and other hygiene products 53
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Electronic Materials ◆Product categories ・Organic EL materials ・Display semiconductor materials etc. ◆OLED manufacturing/customer support ・Establishing factories and customer support centers in Asia and reinforcing relationships with display manufacturers, etc. to further expand the organic EL materials business in Asia ・Aiming to develop and commercialize oxidative semiconductor materials which are expected to conserve energy and enhance image quality of display products Bitumen (High Performance Asphalt) ◆Asphalt manufacturer which aims to develop state-of-the-art technologies ・Recycling, longer life, carbon neutrality ◆Product categories ・Engineering/construction asphalt ・Industrial asphalt ・Value-added asphalt for roads Agri life ◆Product categories ・Chemical pesticides (Daconil 1000*1, etc.) ・Plant-derived pesticides ・Functional Feeds (RUMINUP*2, etc.） Functional Materials Segment (2/2) Japan: 2 tons (Omaezaki factory) Korea: 12 tons (Paju plant) China: 12 tons (Chengdu plant) *2 An animal husbandry material containing cashew nut shell liquid that has the effect of reducing methane gas in cattle burps Maybright (Value-added asphalt for roads) Todaiji Temple Business Overview RUMINUP M Daconil 1000 ® *1 Protective disinfectants less affecting organism that has the stable effect toward various crops and damage owing to disease 54
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Power /Renewable Energy Segment ◆Owning 829 thousand KW(Japan:315, Overseas:514) of renewable energy generation capacity ◆Operating businesses such as wholesale and retail sales for high and low pressure, based on the company’s own generation ◆Terminated production in June 2022 ◆Shifting to a system integrator which engages in solar power generator design, construction, maintenance and recycling Power Solar Business Overview Category Power Plant Operating Company Stake Owned Power generation capacity* (%) (10,000 KW) Solar 34 domestic locations Idemitsu, other ー 18.7 Biomass Keihin Biomass Power Plant (Kanagawa) Keihin Biomass Power 100 4.9 Tosa Power Plant (Kochi) Tosa Green Power 50 0.3 Fukui Green Power (Fukui) Fukui Green Power 10 0.1 Tokuyama Biomass Power Plant (Yamaguchi) Idemitsu ー 5.0 Wind Rokkasho Village Village Wind Farm (Aomori) Futamata Wind Development 40 2.0 Geothermal Takigami Binary Power Plant (Oita)* Idemitsu Oita Geothermal 100 0.5 Renewable (Japan) 31.5 Fire Ohgishima Power Station (Kanagawa) Ohgishima Power 25 30.5 Mizue Thermal Power Plant (Kanagawa) Toa Oil 100 27.6 Aichi Refinery Power Plant (Aichi) Idemitsu ー 25.0 Domestic 114.9 Solar Overseas (North America, Vietnam, etc.) ー ー 51.4 Fire Overseas ー ー 27.1 Overseas 78.5 Total 193.4 *Reflects Idemitsu’s stake *Idemitsu has been supplying the steam for power generation to the Takigami Power Station of Kyushu Electric Power Co., Inc. since start of operation 55
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Business Overview Production Oil/Gas Reserves 1. Producing and selling crude oil/gas in Vietnam and Norway 2. Exploration and development of gas in Vietnam and other parts of Southeast Asia to shift to production of natural gas, which will become an important energy source in a decarbonizing society Resources Segment (Gas and Oil E&P) *1 Total reserves in Norwegian oil fields and Vietnamese gas fields *2 Reserves reflect Idemitsu’s rights and ownership ratios ◆Rights owned in oil/gas fields and sales destinations ◆Reserves *1,2 [million BOE] Business Overview ◆ Reserve Estimation Standards ・Idemitsu’s reserves estimation is conducted based on PRMS (Petroleum Resources Management System) standards ・PRMS standards were established jointly by the Society of Petroleum Engineers (SPE), the World Petroleum Congress (WPC), the American Association of Petroleum Geologists (AAPG), and the Society of Petroleum Evaluation Engineers (SPEE) and is recognized as an international standard ・Reserves defined by PRMS standards are categorized into 1) proved, 2) probable, and 3) possible reserves. Idemitsu’s reserves estimate is calculated as the total of proved and probable reserves (1+2) ◆ Proved Reserves ・The definition of proved reserves is recognized as the most conservative among definitions used widely in the petroleum/gas industry ・Proved reserves are those quantities of petroleum/gas which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable under current economic conditions and operating methods ・When probabilistic methods are used, there should be at least a 90% probability of recovery that the quantities actually recovered will equal or exceed proved reserves ◆ Probable Reserves ・Probable reserves are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable ・When probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves Name of field Rights Owner Destination Vietnam Sao Vang and Dai Nguyet gas field Idemitsu Gas Production (Vietnam) Co.,Ltd. *43.08％ owned Asia Norway Snorre INPEX Idemitsu Norge AS Europe Tordis/Vigdis Fram H-Nord Byrding Vega Duva 56 0 50 100 150 2022 2023 2024
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Resource Segment (Coal) Business Overview Business Overview Business Structure Reforms [Business Strategy] ◆Stable supply and profit maximization by leveraging the highly competitive Boggabri Mine ◆Engage in low-carbon solution businesses such as Idemitsu Green Energy Pellets ◆Leverage management resources built up over years of experience in Australia to transition to new businesses such as rare metals, renewable energy, hydrogen/ammonia, etc. １．Mining Operations Owning an Australian coal mine (Boggabri Mine) and has established a whole supply chain from production to sales, providing a stable supply of high-quality coal mainly to Japan [Overview of Boggabri Mine] Location: New South Wales Coal quality: thermal coal (80%), raw coal (SS/PCI) (20%) Port for shipments: Newcastle Harbor (about 360 km by train) ◆Idemitsu Green Energy Pellets (black pellets) ・CO2 emissions can be reduced by replacing coal with black pellets in fuel used at coal-fired power stations ・Succeeded in a mixed combustion to replace 20-30% of coal fuel with black pellets ・Commenced operation of a commercial plant that produces 120,000 tons/year in Vietnam in FY25, aiming to reach 3,000,000 tons/year by 2030 Vietnam Commercial Plant *Mining operations at Muswellbrook Mine were terminated in Mar 2023 and Ensham Mine was sold in 2023 ◆New businesses in Australia ・Rare metals: Invested in Vecco, which engages in vanadium operations in Australia ・Renewable energy: Commercialization verification of pumped storage hydroelectric power generation at the post-mining Muswellbrook coal mine site 57
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Precaution statement about forecasts Any information about forecasts for the Company’s operating results, management strategy and management policy contained in this documents other than historical facts is prepared, according to judgments made by the top management of the Company based on information available as of the publication of the document. Actual business environments contain potential risk factors and uncertainties including economic situations, crude oil prices, trends in petroleum products, market conditions, currency exchange rates and interest rates. Consequently, actual operating results of the Company may substantially differ from forecasts due to changes in the important factors mentioned above. 58