Idemitsu Kosan Co. (5019) Investor presentation summary

Management philosophy and vision

• Emphasizes empathy, integrity, and solidarity, aiming to act in the best interests of communities and stakeholders while fostering a culture of continuous improvement and overcoming challenges together.

Review of previous mid-term plan (FY2023-2025)

• Achieved operating and equity income and ROE targets, aided by high petroleum and functional materials profits, but faced volatility from crude oil prices.

• Human capital initiatives focused on embedding management philosophy, DE&I, and individual potential, with new guidelines established.

• Business platform improvements included DX talent development and AI-driven productivity gains.

• ROIC improved in petroleum and functional materials, but power/renewable energy and basic chemicals faced challenges.

• Advanced carbon-neutral and circular business domains, including blue ammonia, e-methanol, SAF, and chemical recycling.

Business environment and scenario analysis

• Faces rising energy security risks, supply chain disruptions, and calls for enhanced corporate value.

• Fossil fuel demand outlook is highly uncertain, influenced by policy and technology shifts.

• Scenario planning includes both high and low decarbonization futures, with strategic flexibility emphasized.