November 11, 2025
Consolidated Financial Results [Japan GAAP] for the six months ended September 30, 2025Company Name: Idemitsu Kosan Co.,Ltd. (URL https://www.idemitsu.com/en/index.html) Company Code: 5019, Shares listed on: Tokyo Stock Exchange
Name of Representative: Sakai Noriaki, Representative Director & Chief Executive Officer Contact Person: Sasaki Shinko, General Manager, Investor Relations Office, Finance Department Telephone: +81-3-3213-9307
Scheduled date of filing of interim securities report: November 12, 2025 Scheduled date of commencement of dividend payments: December 5, 2025 Supplementary materials for the financial results: Yes
Financial results presentation: Yes (for institutional investors and analysts)
(Figures less than ¥1 million are rounded off)
Consolidated Financial Results for the six months ended September 30, 2025
Consolidated operating results
(Percentage figures represent changes from the corresponding previous period)
Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
For the six months ended
¥million
%
¥million
%
¥million
%
¥million
%
September 30, 2025
3,805,653
(15.5)
25,844
(73.4)
35,265
(71.8)
36,075
(63.7)
September 30, 2024
4,504,025
11.9
97,330
(52.0)
124,883
(44.9)
99,442
(39.7)
Note: Comprehensive income September 30, 2025: ¥34,768 million (69.8)% September 30, 2024: ¥115,234 million (42.9)%
Net income per share
Diluted net income per share
For the six months ended
¥
¥
September 30, 2025
29.46
-
September 30, 2024
72.99
-
Consolidated financial position
Total assets
Net assets
Equity ratio
As of
¥million
¥million
%
September 30, 2025
4,525,885
1,750,506
38.1
March 31, 2025
4,775,586
1,737,699
36.0
Reference: Total equity as of September 30, 2025: ¥ 1,726,393 million As of March 31, 2025: ¥1,720,368 million
Dividends
Cash dividends per share
As of Jun.30
As of Sep.30
As of Dec.31
As of Mar.31
Total
For the fiscal year
¥
¥
¥
¥
¥
ended March 31, 2025
-
18.00
-
18.00
36.00
ending March 31, 2026
-
18.00
ending March 31, 2026 (Forecasts)
-
18.00
36.00
Note: Revisions of the forecasts of cash dividends since the latest announcement: None
Forecasts of Consolidated Financial Results for the fiscal year ending March 31, 2026
(Percentage figures represent changes from the previous fiscal year)
Net sales | Operating income | Ordinary income | Net income attributable to owners of the parent | Net income per share | |||||
Fiscal year ending March 31, 2026 | ¥million | % | ¥million | % | ¥million | % | ¥million | % | ¥ |
7,950,000 | (13.5) | 68,000 | (58.1) | 85,000 | (60.4) | 75,000 | (27.9) | 61.24 | |
Note: Revisions of the forecasts of consolidated financial results since the latest announcement: Yes
* Notes
Changes of material consolidated subsidiaries during the six months ended September 30, 2025:
NoneApplication of the accounting method peculiar to the preparation of the interim consolidated financial statements: Yes
Changes in accounting policies, accounting estimates and restatement
Changes in accounting policies arising from revision of accounting standards: None
Changes arising from other factors: None
Changes in accounting estimates: None
Restatement: None
Number of shares issued (common stock)
Number of shares issued (including treasury stock)
As of September 30, 2025: 1,288,747,390 As of March 31, 2025: 1,358,078,690
Number of shares of treasury stock
As of September 30, 2025: 64,110,645 As of March 31, 2025: 133,441,710
Weighted average number of shares outstanding during the period Six months ended September 30, 2025: 1,224,636,909
Six months ended September 30, 2024: 1,362,507,749
*1 This report is out of the scope of the review by certified public accountants or audit firms.
*2 The financial forecasts above are based on information available and assumptions as of the date of publication of this document. Actual operating results may differ from the forecasts due to various factors. Additionally, for the assumptions used for the forecasts of the above, please refer to page 6 "Explanation of Forecasts of Consolidated Financial Results for the fiscal year ending March 31, 2026" of the Appendix.
Contents of the Appendix
1. Overview of Operating Results and Others….…………………………………………………………………… | 2 | |
(1) Overview of Operating Results for the Six Months Ended September 30, 2025……………………………… | 2 | |
(2) Overview of Financial Position for the Six Months Ended September 30, 2025……………………………… | 5 | |
(3) Explanation of Forecasts of Consolidated Financial Results for the fiscal year ending March 31, 2026……. | 6 | |
2. Consolidated Financial Statements and Major Notes….………………………………………………………... | 7 | |
(1) Consolidated Balance Sheets …………………………………………………………………………………… | 7 | |
(2) Consolidated Statements of Income and Comprehensive Income …………………………….........………… | 9 | |
1) Consolidated Statements of Income ………………………………………………………………………… | 9 | |
2) Consolidated Statements of Comprehensive Income ……………………………………….……………… | 10 | |
(3) Consolidated Statements of Cash Flows……………………………………………..……………………….. | 11 | |
(4) Notes on the Consolidated Financial Statements……………………………. ………………………………… | 13 | |
1) Notes on Changes in Scope of Consolidation or Scope of Application of the Equity Method…………... | 13 | |
2) Notes on the Application of the Accounting Method Peculiar to the Preparation of the Interim Consolidated Financial Statements | ……………………………… | 13 |
3) Notes on the Consolidated Segment Information …………………………………………………………… | 14 | |
4) Notes on the Significant Changes in Shareholders' Equity ……………………..………..………………… | 15 | |
5) Notes on Going Concern Assumption…………………………………………..………..………………… | 15 | |
6) Notes on the Significant Subsequent Events………………………………………………...…………… | 16 | |
-
Overview of Operating Results and Others
Overview of Operating Results for the Six Months Ended September 30, 2025
During the six months ended September 30, 2025, domestic demand for main petroleum products decreased owing to structural factors, including a decrease in the number of passenger cars owned, improved fuel efficiency, and more efficient logistics.
Crude oil prices fell temporarily owing to concerns about economic deterioration mainly following the announcement of tariffs by the United States in early April, and the perception of oversupply following the announcement of an increase in production by OPEC Plus. However, they started to rise owing to geopolitical risks stemming from the situation in Iran and Israel, and have been around $70/bbl since July. As a result, the average Dubai crude oil price from April to September decreased by $13.4/bbl from the same period last year to $68.4/bbl.
As for the dollar-to-yen exchange rate, the yen had strengthened owing to concerns about economic deterioration following the announcement of tariffs by the United States, as well as speculation that the U.S. government may let the dollar fall, but then the exchange rate repeated ups and downs, affected by tariff negotiations with the U.S. government, and geopolitical risks stemming from the situation in Iran and Israel. As a result, the average exchange rate between April and September against the dollar was ¥146.0.
(Crude oil price and exchange rate)
Six months ended September 30, 2024
Six months ended September 30, 2025
Change
Dubai Crude Oil ($/bbl)
81.8
68.4
(13.4)
(16.4)%
Exchange Rate (¥/$)
152.6
146.0
(6.6)
(4.3)%
The Idemitsu Group's consolidated net sales for the six months ended September 30, 2025, were
¥3,805.7 billion, down 15.5% year on year, mainly due to the fall in crude oil prices in the petroleum segment.
Operating income was ¥25.8 billion, down 73.4% year on year, mainly due to effects of inventory valuation resulting from the decline in crude oil prices in the petroleum segment, shrinking overseas product margins in the basic chemicals segment, and a decline in coal prices in the resources segment.
Net non-operating income was ¥9.4 billion, down 65.8% year on year, mainly due to a decrease in equity in earnings of nonconsolidated subsidiaries and affiliates. Consequently, ordinary income was ¥35.3 billion, down 71.8% year on year.
Net extraordinary income was ¥6.0 billion, up 1.8% year on year, mainly due to gain on step acquisition of subsidiaries.
Income tax expenses, which consist of income taxes-current and income taxes-deferred, amounted to ¥6.0 billion, down 81.2% year on year, due to a decrease in income before income taxes.
Consequently, net income attributable to owners of the parent was ¥36.1 billion, down 63.7% year on year.
The performance of our business by segment for the six months ended September 30, 2025, is as follows:
Net sales by segment
(Unit: ¥Billion)
Segment
Six months ended September 30, 2024
Six months ended September 30, 2025
Change
Amount
%
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) %
Other
6.3
7.6
+1.3
+20.0 %
Total
4,504.0
3,805.7
(698.4)
(15.5) %
Segment income or loss
(Unit: ¥Billion)
Segment
Six months ended September 30, 2024
Six months ended September 30, 2025
Change
Amount
%
Petroleum
: excluding effect of inventory valuation
62.2
62.8
10.9
70.5
(51.3)
+7.7
(82.4) %
+12.2 %
Basic chemicals
3.4
(7.7)
(11.2)
-
Functional materials
16.0
19.0
+3.0
+18.9%
Power and renewable energy
(5.8)
(0.7)
+5.1
-
Resources
42.8
17.1
(25.6)
(60.0) %
Other
0.8
0.5
(0.2)
(30.5) %
Reconciliation
(5.8)
(10.2)
(4.4)
-
Total
: excluding effect of inventory valuation
113.4
114.0
28.9
88.4
(84.5)
(25.6)
(74.5) %
(22.4) %
Note: Segment income (loss) is the total of operating income (loss) and equity in earnings (losses) of nonconsolidated subsidiaries and affiliates.
[Petroleum segment]
Net sales in the petroleum segment were ¥3,167.8 billion, down 15.5% year on year, mainly due to falling crude oil prices. Segment income was ¥10.9 billion, down 82.4% year on year, mainly due to effects of the inventory valuation stemming from falling crude oil prices and an increase in large scale periodic repair costs, despite a reduction in negative time lags and an improvement in domestic sales margins.
[Basic chemicals segment]
Net sales in the basic chemicals segment were ¥235.2 billion, down 20.2% year on year, and segment loss was ¥7.7 billion, a decrease of ¥11.2 billion year on year, mainly due to lower product margins.
[Functional materials segment]
Net sales in the functional materials segment were ¥247.9 billion, down 1.1 % year on year, with segment income of ¥19.0 billion, up 18.9% year on year, mainly due to the impact of sales time lags in the lubricants business and the contribution of new consolidated subsidiaries in the agri life business, despite a deterioration in margins in the performance chemicals business due to equipment surplus in China.
[Power and renewable energy segment]
Net sales in the power and renewable energy segment were ¥51.6 billion, down 21.2% year on year, with segment loss of ¥0.7 billion, an increase of ¥5.1 billion year on year, mainly due to the resolution of problems that occurred last year and a decrease in depreciation associated with the impairment of biomass power generation equipment.
[Resources segment]
(Oil/natural gas exploration and production and geothermal energy business)
Net sales in the oil/natural gas exploration and production and geothermal energy business were
¥18.8 billion, down 13.4% year on year, with segment income of ¥8.0 billion, down 19.8% year on year, mainly due to a decrease in production volume and a decline in crude oil prices.
(Coal business and others)
Net sales in the coal business and others were ¥76.8 billion, down 32.8% year on year, and segment income was ¥9.2 billion, down 72.1% year on year, mainly due to price factors associated with a decline in the coal market.
As a result of the above, total net sales in the resources segment were ¥95.6 billion, down 29.7% year on year, and segment income was ¥17.1 billion, down 60.0% year on year.
[Other segments]
Net sales in the other segments were ¥7.6 billion, up 20.0% year on year, and segment income was
¥0.5 billion, down 30.5% year on year.
Overview of Financial Position for the Six Months Ended September 30, 2025 Summarized Consolidated Balance Sheets
(Unit: ¥Billion)
As of March 31, 2025
As of September 30, 2025
Change
Current assets
2,649.9
2,372.8
(277.1)
Fixed assets
2,125.7
2,153.1
+27.4
Total assets
4,775.6
4,525.9
(249.7)
Current liabilities
2,097.4
1,796.9
(300.5)
Non-current liabilities
940.5
978.5
+38.0
Total liabilities
3,037.9
2,775.4
(262.5)
Total net assets
1,737.7
1,750.5
+12.8
Total liabilities and net assets
4,775.6
4,525.9
(249.7)
Total assets
Total assets were ¥4,525.9 billion, a decrease of ¥249.7 billion from the end of the previous fiscal year, mainly due to decreases in notes and accounts receivable, trade and inventory.
Total liabilities
Total liabilities were ¥2,775.4 billion, a decrease of ¥262.5 billion from the end of the previous fiscal year, mainly due to a decrease in accounts payable.
Total net assets
Total net assets were ¥1,750.5 billion, an increase of ¥12.8 billion from the end of the previous fiscal year, mainly due to recording net income attributable to owners of the parent, despite decreases due to dividend payments.
As a result, the equity ratio improved from 36.0% at the end of the previous fiscal year to 38.1%, up 2.1 points. The Net D/E ratio as of September 30, 2025, was 0.7 (end of previous fiscal year: 0.6).
Summarized Consolidated Statements of Cash Flows
(Unit: ¥Billion)
Six months ended
September 30, 2024
Six months ended September 30, 2025
Cash flows from operating activities
221.8
75.6
Cash flows from investing activities
(47.0)
(99.7)
Cash flows from financing activities
(288.0)
(8.2)
Effect of exchange rate change on cash and cash
equivalents
(4.4)
(0.8)
Net increase (decrease) in cash and cash equivalents
(117.6)
(33.1)
Cash and cash equivalents at the beginning of period
136.9
164.3
Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
0
2.8
Increase (decrease) in cash and cash equivalents
resulting from change of fiscal year-end of subsidiaries
10.6
(13.3)
Cash and cash equivalents at the end of period
29.9
120.6
Cash and cash equivalents ("funds") as of September 30, 2025, were ¥120.6 billion, a decrease of
¥43.6 billion compared with the end of the preceding fiscal year. Major factors for this decrease are as follows:
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥75.6 billion, as factors contributing to increased funds such as income before income taxes, depreciation, as well as decreases in notes and accounts receivable, trade and inventories, exceeded factors decreasing funds, such as a decrease in notes and accounts payable, trade.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥99.7 billion, mainly due to the acquisition of tangible fixed assets as part of capital investment such as maintenance/replacement investment in refinery facilities.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥8.2 billion, mainly due to dividend payments.
Explanation of Forecasts of Consolidated Financial Results for fiscal year ending March 31, 2026
The Company has revised its forecasts of the consolidated financial results for the year ending March 31, 2026, released on May 13, 2025, given the actual business results for the six months ended September 30, 2025, and the latest forecasts. Please refer to the "Announcement on Revisions to Consolidated Earnings Forecasts for the Fiscal Year Ending March 2026" announced today for details of the forecasts. The impact of the acquisition of Fuji Oil Company, Ltd., announced on October 29, 2025, is currently under scrutiny. We will promptly notify you if revision is needed.
- Consolidated Financial Statements and Major Notes
Consolidated Balance Sheets
(Unit: ¥Million)
As of March 31, 2025
As of September 30, 2025
Assets
Current assets:
Cash and deposits
165,762
122,164
Notes and accounts receivable, trade
817,349
699,983
Inventories
1,266,953
1,147,773
Accounts receivable, other
298,776
271,371
Other
104,644
134,829
Less: Allowance for doubtful accounts
(3,628)
(3,343)
Total current assets
2,649,858
2,372,779
Fixed assets:
Property, plant and equipment:
Machinery and equipment, net
258,139
248,710
Land
736,655
738,642
Other, net
379,229
403,049
Total property, plant and equipment
1,374,024
1,390,403
Intangible fixed assets:
Goodwill
124,348
132,984
Other
130,231
126,837
Total intangible fixed assets
254,580
259,821
Investments and other assets:
Investment securities
305,764
300,579
Other
245,488
256,174
Less: Allowance for doubtful accounts
(54,130)
(53,872)
Total investments and other assets
497,122
502,881
Total fixed assets
2,125,727
2,153,106
Total assets
4,775,586
4,525,885
Liabilities
Current liabilities:
Notes and accounts payable, trade
824,413
604,953
Short-term loans payable
479,642
461,675
Commercial paper
166,853
194,838
Current portion of bonds payable
30,000
20,000
Accounts payable, other
426,313
344,074
Income taxes payable
9,793
10,573
Provision for bonuses
16,706
14,577
Other
143,684
146,175
Total current liabilities
2,097,407
1,796,867
Long-term liabilities:
Bonds payable
110,000
90,000
Long-term loans payable
409,879
458,327
Liability for employees' retirement benefits
49,064
49,864
Reserve for repair work
91,117
112,954
Provision for losses related to contracts
10,106
9,440
Asset retirement obligations
40,013
38,051
Other
230,297
219,873
Total long-term liabilities
940,478
978,510
Total liabilities
3,037,886
2,775,378
(Unit: ¥Million)
As of March 31, 2025
As of September 30, 2025
Net assets
Shareholders' equity:
Common stock
168,351
168,351
Capital surplus
354,693
280,726
Retained earnings
1,111,225
1,128,366
Treasury stock
(139,690)
(66,475)
Total shareholders' equity
1,494,580
1,510,969
Accumulated other comprehensive income:
Unrealized gains (losses) on available-for-sale
securities
4,184
4,697
Deferred gains (losses) on hedging activities,
net
(1,014)
(3,750)
Surplus from land revaluation
137,848
137,675
Foreign currency translation adjustments
51,873
45,566
Defined retirement benefit plans
32,896
31,235
Total accumulated other comprehensive income
225,788
215,423
Noncontrolling interests
17,330
24,113
Total net assets
1,737,699
1,750,506
Total liabilities and net assets
4,775,586
4,525,885
Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
(Unit: ¥Million)
Six months ended September 30, 2024
Six months ended September 30, 2025
Net sales
4,504,025
3,805,653
Cost of sales
4,158,079
3,521,652
Gross profit
345,945
284,000
Selling, general and administrative expenses
248,614
258,156
Operating income
97,330
25,844
Non-operating income:
Interest income
5,983
9,489
Dividend income
3,099
3,270
Equity in earnings of nonconsolidated subsidiaries
and affiliates, net
16,088
3,059
Gain on foreign exchange, net
8,385
889
Other
4,032
3,557
Total non-operating income
37,588
20,265
Non-operating expenses:
Interest expense
8,548
8,198
Other
1,486
2,646
Total non-operating expenses
10,035
10,844
Ordinary income
124,883
35,265
Extraordinary income:
Gain on sales of fixed assets
5,679
2,178
Gain on sales of investment securities
39
1,734
Gain on reversal of loss on valuation of shares of
subsidiaries and affiliates
3,247
-
Gain on step acquisition
-
6,973
Other
1,143
729
Total extraordinary income
10,109
11,615
Extraordinary losses:
Impairment loss on fixed assets
489
317
Loss on sales of fixed assets
300
44
Loss on disposals of fixed assets
2,674
2,811
Loss on sales of investment securities
380
1,610
Other
380
840
Total extraordinary losses
4,225
5,623
Income before income taxes
130,768
41,257
Income taxes
32,086
6,042
Net income
98,681
35,214
Net loss attributable to noncontrolling interests
(761)
(860)
Net income attributable to owners of the parent
99,442
36,075
Consolidated Statements of Comprehensive Income
(Unit: ¥Million)
Six months ended September 30, 2024
Six months ended September 30, 2025
Net income
98,681
35,214
Other comprehensive income:
Unrealized gains (losses) on available-for-sale
securities
(1,553)
685
Deferred gains (losses) on hedging activities, net
2,483
468
Foreign currency translation adjustments
9,799
2,180
Defined retirement benefit plans
(1,822)
(1,674)
Share of other comprehensive income in equity
method affiliates
7,644
(2,105)
Total other comprehensive income
16,552
(445)
Comprehensive income
115,234
34,768
Comprehensive income attributable to:
Owners of the parent
116,661
35,620
Noncontrolling interests
(1,426)
(851)
Consolidated Statements of Cash Flows
(Unit: ¥Million)
Six months ended September 30, 2024
Six months ended September 30, 2025
Cash flows from operating activities:
Income before income taxes
130,768
41,257
Depreciation and amortization
47,237
45,876
Impairment loss on fixed assets
489
317
Amortization of goodwill
4,709
4,598
(Gain) loss on step acquisition
-
(6,973)
Increase (decrease) in liability for employees' retirement benefits
(474)
1,778
Increase (decrease) in reserve for repair work
18,783
21,837
Increase (decrease) in allowance for doubtful
accounts
(1,996)
(358)
Increase (decrease) in provision for losses related
to contracts
-
(666)
Interest and dividend income
(9,082)
(12,759)
Interest expense
8,548
8,198
Equity in (earnings) losses of nonconsolidated
subsidiaries and affiliates, net
(16,088)
(3,059)
(Gain) loss on sales of fixed assets, net
(5,379)
(2,133)
(Gain) loss on valuation of investment securities,
net
(39)
(1,306)
Gain on reversal of loss on valuation of shares of
subsidiaries and affiliates
(3,247)
-
(Increase) decrease in notes and accounts
receivable, trade
189,905
114,101
(Increase) decrease in inventories
86,792
109,090
Increase (decrease) in notes and accounts payable,
trade
(107,272)
(188,033)
Increase (decrease) in accounts payable, other
(116,690)
(68,672)
(Increase) decrease in accounts receivable, other
33,561
24,861
Other, net
29,810
(6,121)
Subtotal
290,334
81,833
Interest and dividends received
4,944
16,492
Interest paid
(8,452)
(7,591)
Income taxes paid
(64,986)
(15,102)
Net cash provided by (used in) operating activities
221,840
75,632
(Unit: ¥Million)
Six months ended September 30, 2024
Six months ended September 30, 2025
Cash flows from investing activities:
Purchases of tangible fixed assets
(35,630)
(61,477)
Proceeds from sales of tangible fixed assets
9,700
2,962
Purchases of intangible fixed assets
(3,563)
(4,364)
Acquisitions of investment securities
(27,043)
(10,204)
Proceeds from sales of investment securities
84
4,145
Disbursements for long-term loans
(0)
(19,732)
Proceeds from collection of long-term loans
receivable
441
138
(Increase) decrease in short-term loans
receivable, net
11,517
(2,641)
Purchase of shares of subsidiaries resulting in
change in scope of consolidation
-
(5,562)
Other, net
(2,544)
(2,956)
Net cash provided by (used in) investing activities
(47,038)
(99,692)
Cash flows from financing activities:
Increase (decrease) in short-term loans payable,
net
(77,337)
(3,144)
Increase (decrease) in commercial paper, net
(106,018)
27,985
Proceeds from long-term loans payable
-
71,000
Repayments of long-term loans payable
(25,830)
(49,406)
Proceeds from issuance of bonds
(10,000)
(30,000)
Purchases of treasury stock
(48,069)
(0)
Proceeds from disposals of treasury stock
136
0
Cash dividends paid
(22,117)
(22,329)
Proceeds from share issuance to non-controlling
shareholders
5,494
2,915
Cash dividends paid to non-controlling interests
(380)
(624)
Other, net
(3,834)
(4,626)
Net cash provided by (used in) financing activities
(287,957)
(8,230)
Effect of exchange rate change on cash and cash equivalents
(4,424)
(844)
Net increase (decrease) in cash and cash equivalents
(117,579)
(33,134)
Cash and cash equivalents at the beginning of period
136,900
164,251
Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
24
2,842
Increase (decrease) in cash and cash equivalents
resulting from change of fiscal year-end of subsidiaries
10,579
(13,318)
Cash and cash equivalents at the end of period
29,924
120,640
Notes on the Consolidated Financial Statements
Notes on Changes in Scope of Consolidation or Scope of Application of the Equity Method (Changes in Fiscal Year-end of Consolidated Subsidiaries)
Previously, the financial statements of consolidated subsidiaries with a closing date of December 31 were used as of that date, while necessary adjustments for consolidation have been made for significant transactions that occurred between that date and the consolidated closing date. However, in order to ensure more appropriate disclosure of consolidated financial statements, beginning with the six months of the current fiscal year, the Company changed its method of consolidation on the financial statements for some consolidated subsidiaries (46 companies including Idemitsu Apollo Corporation ) by changing their closing date to March 31 or by making provisional settlement of accounts as of March 31.
The consolidated subsidiaries' income or loss for the period from January 1, 2025 to March 31, 2025 has been adjusted as an increase in retained earnings of ¥929 million.
Notes on the Application of the Accounting Method Peculiar to the Preparation of the Interim Consolidated Financial Statements
(Calculation of income taxes)
Income taxes are calculated by multiplying the income before income taxes for the six months ended September 30, 2025 by the estimated effective tax rate that is reasonably estimated for income before income taxes for the fiscal year that includes the six months ended September 30, 2025.
However, if the calculation using the relevant estimated effective tax rate leads to significantly irrational results, income taxes are calculated by multiplying the six months ended September 30, 2025 income before income taxes by the effective statutory tax rate, after adjusting important differences that do not constitute temporary differences.
Notes on the Consolidated Segment Information For the six months ended September 30, 2024
Net sales and income or loss by reportable segment
(Unit: ¥Million)
Reportable segment
Others
Total
Reconciliation
Consolidated
Petroleum
Basic chemicals
Functional materials
Power and renewable energy
Resources
Total
Net sales:
customers
3,750,727
294,642
250,826
65,522
135,986
4,497,705
6,319
4,504,025
-
4,504,025
Intersegment
12,912
21,831
13,215
1,488
0
49,447
3,942
53,389
(53,389)
-
Total
3,763,639
316,474
264,041
67,010
135,986
4,547,153
10,261
4,557,415
(53,389)
4,504,025
Operating income (loss)
51,356
3,121
15,701
(5,198)
37,186
102,168
754
102,922
(5,592)
97,330
Equity in earnings (losses) of nonconsolidated subsidiaries and
affiliates, net
10,816
287
274
(637)
5,565
16,305
-
16,305
(217)
16,088
Segment income (loss)
62,173
3,409
15,976
(5,836)
42,752
118,474
754
119,228
(5,809)
113,418
Notes:
The segment "Others" refers to the total of other business segments that are not included in the reportable segments, including insurance businesses and intra-group service businesses.
The amounts of reconciliation for the operating income (loss) mainly represents research and development costs, which do not belong to reportable segments.
The amount of reconciliation for equity in earnings (losses) of nonconsolidated subsidiaries and affiliates represents those related to equity method nonconsolidated subsidiaries and affiliates, which do not belong to reportable segments.
The segment income (loss) of the reportable segments is reconciled to the total of operating income (loss) and equity in earnings (losses) of nonconsolidated subsidiaries and affiliates in the consolidated statement of income.
Impairment loss on fixed assets and goodwill by reportable segment There is no significant item during the period.
For the six months ended September 30, 2025
Net sales and income or loss by reportable segment
(Unit: ¥Million)
Reportable segment
Others
Total
Reconciliation
Consolidated
Petroleum
Basic chemicals
Functional materials
Power and renewable energy
Resources
Total
Net sales:
customers
3,167,759
235,192
247,943
51,605
95,568
3,798,069
7,583
3,805,653
-
3,805,653
Intersegment
7,809
4,412
11,515
1,939
-
25,677
3,539
29,216
(29,216)
-
Total
3,175,568
239,605
259,459
53,545
95,568
3,823,746
11,123
3,834,869
(29,216)
3,805,653
Operating income (loss)
10,496
(8,979)
19,308
(431)
13,696
34,089
524
34,614
(8,770)
25,844
Equity in earnings (losses) of nonconsolidated
subsidiaries and affiliates, net
417
1,236
(315)
(300)
3,424
4,462
-
4,462
(1,403)
3,059
Segment income (loss)
10,913
(7,743)
18,992
(731)
17,121
38,552
524
39,076
(10,173)
28,903
Notes:
The segment "Others" refers to the total of other business segments that are not included in the reportable segments, including insurance businesses and intra-group service businesses.
The amounts of reconciliation for the operating income (loss) mainly represents research and development costs, which do not belong to reportable segments.
The amount of reconciliation for equity in earnings (losses) of nonconsolidated subsidiaries and affiliates represents those related to equity method nonconsolidated subsidiaries and affiliates, which do not belong to reportable segments.
The segment income (loss) of the reportable segments is reconciled to the total of operating income (loss) and equity in earnings (losses) of nonconsolidated subsidiaries and affiliates in the consolidated statement of income.
Impairment loss on fixed assets and goodwill by reportable segment There is no significant item during the period.
Notes on the Significant Changes in Shareholders' Equity
Based on the resolution of the Company's Board of Directors meeting held on May 14, 2024, the Company completed the cancellation of 69,331 thousand shares of treasury stock on April 30, 2025. As a result, capital surplus and treasury stock decreased by ¥73,215 million each for the six months ended September 30, 2025, bringing capital surplus to ¥280,726 million and treasury stock to ¥66,475 million at the end of the six months ended September 30, 2025.
Notes on the Assumption of a Going Concern None
Notes on the Significant Subsequent Events
(Business combination through acquisition)
Pursuant to a resolution of the Board of Directors meeting on September 11, 2025, the Company determined to acquire the shares of common stock of Fuji Oil Company, Ltd. (hereinafter referred to as "Fuji Oil"), an equity-method affiliate, through a tender offer (the "Tender Offer") under the Financial Instruments and Exchange Act of Japan; that it conducted the Tender Offer from September 12, 2025; and that the Tender Offer ended on October 28, 2025.
As a result of the tender offer, Fuji Oil became a consolidated subsidiary of the Company on November 5, 2025.
Outline of the business combination
Name and business Description of the acquiree Name of the acquiree: Fuji Oil Company, Ltd.
Business description: Import of crude oil, refinement of petroleum, and manufacture and sales of petrochemical products
Primary reasons for the business combination
The Idemitsu Group and the Fuji Oil Group believe that, by engaging in business activities under the same business enterprise and the same management strategy after privatizing Fuji Oil, both companies will be able to realize a more in-depth collaboration system, make decision-making more flexible and expedited, and compared to the case where the Fuji Oil is made an equity-method affiliate, further develop their fuel oil businesses, through pursuing further synergies as described below.
Optimizing petroleum products production system
Developing a stable energy supply foundation with a long-term perspective
Strengthening cost competitiveness by mutual utilization and centralization of functions and infrastructure of both companies
Developing a low-carbon energy supply system
Date of the business combination November 5, 2025
Legal form of the business combination Purchase of shares for cash
Company name after the business combination There is no change.
Percentage of voting equity interests acquired
Percentage immediately before the business combination: 22.06% Additional percentage acquired on the acquisition date: 52.97% Percentage after the acquisition: 75.03%
Primary rationale for determining the acquirer
The Company acquired shares in exchange for cash.
Detailed information about the accounting treatment has not been disclosed because the initial accounting treatment for the business combination has not been completed.
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Idemitsu Kosan Co. Ltd. published this content on November 11, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 11, 2025 at 06:39 UTC.
