Idemitsu Integrated Report
CONTENTS
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 2
Value Creation Story
Origins and History ■ The Current Idemitsu Group ■ Value Creation Process
Value Creation Story
Since its founding, Idemitsu Kosan has practiced People-Centered Management, building a 114-year history. Over the course of that history, we have overcome major environmental changes and numerous challenges. We will carry on these values and continue to take on the challenge of creating new value going forward.
Origins and History
The Current Idemitsu Group
Value Creation Process
CONTENTS
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 3
Value Creation Story
Origins and History ■ The Current Idemitsu Group ■ Value Creation Process
Achieving Both Sustainable Business Growth and Human Resource
Development
Vision for 2050
Shaping Change
Vision for 2030
Your Reliable Partner for a Brighter Future
Competencies
Take on new Empower
challenges people
boldly Think thoroughly Overcome and make confident differences
decisions
Basic attitudes
Complete sense of Deep regard for
ownership sincerity and
Constant desire mutual trust for growth
Action Guideline
Management Truly inspired
Philosophy
Origins and HistoryFor Idemitsu, our Management Philosophy is a statement of "what is the meaning of our existence?" Our Management Philosophy is also a universal, unshakeable coordinate, like the North Star, and for employees, it is a guide when they are unsure of their judgments, and it represents a vision to which they should aspire at all times.
Our Vision changes with the times and the environment, and represents our initiatives to realize a sustainable society that we must connect to the future.
Guided by our Action Guideline for realizing our Management Philosophy, we are striving to achieve our Vision. Through these efforts, we believe we can move closer to our goal of achieving both sustainable business growth and human resource development.
The Origin of Management
Ningen-Soncho (Having respect for human beings) Written by Sazo Idemitsu
A History of Over 110 Years of Challenge
Idemitsu Shokai founded in Moji Nissho Maru Incident
Began research and development of Began supplying steam to Idemitsu Commenced development of OLED Response to the Great East Japan Constructed the Nghi Son Refinery in Launched the new brand apollostation
(Fukuoka Prefecture)
Became the first company in the world to
solar cells
Engaged in the development of new energy sources
Oita Geothermal Co., Ltd. Takigami materials
Earthquake
Vietnam
Supporting local communities while
Expanded operations in Japan and over- import petroleum products from Iran seas, focusing on sales of petroleum prod- directly
ucts and lubricants
Power Plant
Successfully prototyped the world's first OLED Secured energy supply systems and Built a second refinery in Vietnam, contribut- addressing the future of energy, mobility,
Full-scale commitment to alternative television and obtained patents for high-effi- ensured delivery to affected areas in ing to the country's industrial development and society
energy sources
ciency, long-lifetime deep blue emitters Tohoku and Kanto
2021
2018
2011
2002
1996
1978
1953
1911
Timeline Through 2025
Idemitsu Shokai
1911
WEB Company Information History
Niitsu Sekiyu
1939
Idemitsu Kosan
1940
Hayama Sekiyu
1935
Asahi Sekiyu
1921
Rising Sun Sekiyu
1900
Showa Sekiyu
1942
Idemitsu Kosan
Business integration in 2019
Change of president in 2025
Showa Shell Sekiyu
1985
Shell Sekiyu
1948
These are the words of the founder, Sazo Idemitsu, in his own handwriting. We intend to communicate to the world the importance of "Ningen-Soncho (Having respect for human beings)," a key tenet of our history for over a century, and unassailable ideals we continue to pass down.
CONTENTS
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 4
Value Creation Story
Origins and History ■ The Current Idemitsu Group ■ Value Creation Process
Petroleum
Crude oil processing capacity
825,000 barrels/day*1, 2
Fuel oil sales volume in Japan
34 million kl/year*3
Number of service stations
Approx. 6,000
Basic chemicals
Ethylene production capacity
million tons/year*2
Paraxylene production capacity
840,000 tons/year*2
Mixed xylene production capacity
690,000 tons/year*2
Styrene monomer production capacity
Functional materials
Lubricant sales volume
million kl /year
Engineering plastic sales volume
200,000 tons/year
OLED material production capacity
26 tons/year
Power and renewable energy
Power generation capacity
1.68 million kW
- of which, renewable energy
820,000 kW
Resources
Crude oil and gas production volume
26,000 BOE*4/day
Coal production volume
5.79 million tons/year
790,000 tons/year*2
*1. As of July 2024. Including the refining capacity of Fuji Oil Company, Ltd. under petroleum product trading contract, the total is 968,000 barrels/day
*2. Capacity excludes that of Nghi Son Refinery
*3. Bonded jet fuel and bonded C fuel oil are counted as export fuel and are not included in domestic fuel oil sales volume
*4. BOE: Barrels of Oil Equivalent
CO2 emissions reduction rate
Ratio of female Directors
Ratio of Outside Directors
Idemitsu Engagement Index
Female recruiting ratio
Female ratio in managerial positions
Male ratio taking childcare leave
19.2% | 20% | 40% | 70% | 38.7% | 4.6% | 92% |
(FY2024 result, vs. 2013) | (As of June 30, 2025) | (As of June 30, 2025) | (FY2024 result) | (FY2024 result) | (FY2024 result) | (FY2024 result) |
Major overseas group companies
(Equity method / Idemitsu direct investment of 50% or more)
9.2 trillion yen
Net sales
Germany
Switzerland
United Arab Emirates
China South Korea
Taiwan
United States of America
3,100 people
Overseas employees
14,000 people
Consolidated number of employees
Consolidated operating income + equity in earnings of non-consoli-dated subsidiaries and affiliates
184.8 billion yen
Mexico
Business Category
Petroleum
Basic Chemicals
Pakistan India Malaysia
Hong Kong Thailand
Vietnam
Philippines Indonesia
Functional Materials (Lubricants)
Functional Materials (Electronic Materials)
Functional Materials (Advanced Materials & Performance Chemicals)
Functional Materials (Pesticides and Functional Feed)Power and Renewable Energy
Resources
Other
Singapore
Australia
Brazil
WEB
Number of group companies 263
About us > Group companies
CONTENTS
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 5
Value Creation Story
Origins and History ■ The Current Idemitsu Group ■ Value Creation Process
Value Creation ProcessFinancial KPIs
ROIC: 7%
Cumulative investment in business structure reforms: approximately ¥1trillion
Vision for
2050
Vision for
2030
GHG reduction targets
▶Scope 1 + 2: Achieve CN*1
(Net-zero CO₂ emissions)
▶Scope 3: Aim for carbon neutrality
Non-financial KPIs
Idemitsu Engagement Index: ≥80%
Female ratio in managerial positions: ≥10% Education investment per employee:
≥¥100,000 annually
Male ratio taking childcare leave: 100% Female recruiting ratio: ≥50%
ROE: ≥10%
Operating + equity income: ¥270 bn Fossil fuel business profit ratio: ≤50%
Investment in Business Structure Reforms
FY2025: ROE of 10% and achieve PBR of 1.0x as soon as possible
Engage in ROIC Management: Enhance capital efficiency and profitability of existing businesses
Laying the groundwork for realizing CN
Investments in Human Capital
Embodying management philosophy / vision
Expanding DE&I Bringing out the full potential
of each individual
GHG reduction targets
▶Scope 1 + 2: CO2 emissions -46% (vs. 2013)
▶Scope 1 + 2 + 3: CI*2 -10% (vs. 2020)
(Target for 2040: CI -50% vs. 2020)
Evolution of the business platform
DX strategy / Evolution of governance
*1. CN: Carbon Neutrality
*2. CI: Carbon Intensity
Management Philosophy Truly inspired
The Origin of Management Ningen-Soncho (Having respect for human beings)
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 6
Message from the Chairman ■ Message from the President
Message from the Chairman Pioneering a Sustainable Energy Future for JapanRepresentative Director and Chairman
Shunichi Kito
Against this backdrop, we announced a new management structure in February 2025. Since FY2025 marks the final year of the current Medium-term Management Plan and the start of full-scale discussions around the next plan, I have determined that this is the ideal timing to transition to the new management structure and pass the baton of the presidency. I will hand over responsibility for internal matters to the new president. As for myself, I will devote my full efforts to external activities aimed at realizing our Vision for 2050, Shaping Change, and further enhancing corporate value.
Idemitsu Kosan's Mission and Management StructureAt Idemitsu Group, we are fulfilling our mission of providing a stable supply of energy and materials while striving to achieve a carbon-neutral society by 2050 as we move forward boldly on energy transition. The business environment is undergoing significant, unforeseen changes, including a global pushback against decarbonization trends and rising geopolitical tensions. Even in this uncertain era, we are taking on the global challenge of the energy transition as a unified Group to remain a leading player in energy supply.
Since my appointment as Representative Director and Chief Executive Officer in 2018, I have led a wide range of initiatives. Above all, I have placed the most significant importance on the People-Centered Management that has been a consistent pillar since our founding. Following the business integration
with Showa Shell Sekiyu in 2019, I have focused on the integration of human capital from both companies, believing that transcending organizational origin is essential to unlocking the true strength of the organization and supporting sustainable growth. I firmly believe that our greatest synergy lies in each and every Group employee working with vitality and bringing their strengths to life in their respective workplaces.
Under the current Medium-term Management Plan (FY2023-2025), we have committed ourselves to ensuring the stable supply of energy and to realizing a carbon-neutral society. As we pursue business structure reforms, we have made management decisions by carefully assessing long-term trends in demand for energy and materials and taking a prudent view of the timeframes involved. Going forward, we recognize that we are entering a critical phase, one that calls for prioritizing investment areas and optimizing resource allocation to achieve social implementation.
Toward the Future of the Energy IndustryAchieving a carbon-neutral and circular society requires a balance between energy security and a realistic energy transition. The stable and secure supply of energy is an essential foundation that supports the daily lives of people and economic activity. Through my roles as President of the Petroleum Association of Japan, a member of the GX Implementation Council, and other Keidanren-related activities, I will work closely with government agencies to offer policy recommendations aimed at ensuring the sustainable development of the energy industry. Amid increasing uncertainty due to geopolitical and natural disaster risks, fossil fuels and liquid fuels, which have high energy density and are superior in portability and storability, continue to play an important role. Recognizing this reality, I will promote the low-carbonization of liquid fuels while advocating for the importance of maintaining a stable energy supply and pursuing the optimal energy mix for Japan. We will remain steadfast in our mission to support Japan's energy foundation, including the petroleum industry.
To all our stakeholders who continue to support our activities, I extend my sincere gratitude. Thank you in advance for your continued support and cooperation.
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 7
Message from the Chairman ■ Message from the President
Message from the President Toward a New Stage of Growth: Embracing Change through People-Centered ManagementRepresentative Director and President
Noriaki Sakai
Upon My Appointment as PresidentMy name is Noriaki Sakai, and I assumed the position of Representative Director and President in April 2025.
Since joining the company, I have worked in various departments, including sales, manufacturing, human resources, accounting and finance, and safety and environmental affairs. Through these wide-ranging experiences, I have come to strongly recognize that every role has its own mission, and that it is people who carry out these missions. People are the source of corporate value and the foundation of sustainable
growth for a company.
Our founder, Sazo Idemitsu, declared: "Our business is to develop people; the petroleum industry is merely the means." Developing people who contribute to society and are respected by others is the very purpose of our company. The attitude of each and every employee is to be Truly Inspired, as stated in our corporate philosophy. It has been the driving force that has enabled us to overcome numerous challenges and hardships. Our most important management resource is people, and we will continue to practice People-Centered Management going forward.
The energy industry is undergoing a major transformation. As climate change emerges as a global challenge, financial and geopolitical risks continue to evolve, and people become more aware of energy security, society is becoming increasingly complex, and our business environment is changing rapidly. Even amid the energy transition toward decarbonization, our mission as a Group remains unchanged: to ensure a stable supply of the energy and materials that are needed right now. Having taken on the role of president at this crucial junc-ture-when we must accelerate our efforts and drive transformation forward-I feel a deep sense of responsibility and purpose.
Looking ahead, what I intend to prioritize in management is balance. While the word "balance" may sometimes suggest a passive stance, I see it as a strong and deliberate effort to steer both offense and defense simultaneously. Ensuring a stable
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 8
Message from the Chairman ■ Message from the President
Message from the President
supply of energy and materials is the fundamental mission of any company in our industry, and that mission remains constant. In particular, existing energy sources will continue to play an essential role in supporting Japanese industry and people's daily lives for the foreseeable future. We must firmly maintain that foundation while simultaneously exploring new business possibilities. This is what it means to achieve both stability and change, and I believe that having a strong sense of balance will be more important than ever. It is about knowing when to accelerate and when to brake, and by doing both deliberately, making sure we continue to move forward.
While it is difficult to predict what the future may bring, no matter what comes, I believe that by maintaining this focus on balance and empowering every employee-nurtured through our business-to perform at their best, we can move boldly into the future with both flexibility and strength.
Vision for 2050/2030 and Basic Policy for 2030Smart Yorozuya
While fulfilling our mission to provide a stable supply of the energy and materials needed today, we will also work to implement new forms of energy, materials, and solutions into society that contribute to a carbon-neutral and circular society. Because we have long provided society with a stable supply of large volumes of energy and materials, we believe we are uniquely positioned to lead the way as a main player in energy,
materials, and carbon-neutral solutions well into the future. To contribute to a carbon-neutral and circular society by 2050, we view the environmental changes ahead as opportunities for business transformation and will promote the social implementation of new solutions. Our specific areas of business implementation are: Energy One Step Ahead, Diverse Resource Conservation / Circulation Solutions, and Smart Yorozuya. Energy One Step Ahead encompasses a range of initiatives designed to establish a stable supply of diverse, environmentally friendly, and carbon-neutral energy sources, including synthetic fuels, ammonia, and sustainable aviation fuel (SAF). Diverse resource conservation/circulation solutions leverages our accumulated technological capabilities to offer carbon-neutral solutions, such as high-performance materials and used plastic recycling, not only for industry but also for general consumers. Smart Yorozuya represents our vision to transform service stations across Japan into local "lifestyle support hubs" that support everyday life and help address regional challenges. Our brand, apollostation, will evolve to meet the unique needs of each community, embracing the concept of yorozu (unlimited diversity), and will serve as a base for supporting energy and mobility in local areas.
Through the social implementation of these three business domains, we aim to fulfill our responsibilities both to support people's daily lives and to protect the global environment for future generations. This is embodied in our 2050 Vision: Shaping Change. Leading up to that, we have set forth our
2030 Vision: Your Reliable Partner for a Brighter Future, identifying this period as a critical phase in which we will firmly uphold safe and stable operations at our refineries and complexes, fulfill our duty to ensure a stable supply of energy and materials, and bring to life our efforts toward realizing a carbon-neutral and circular society.
In line with our medium- to long-term vision, we remain unwavering in our strategic direction. As part of our investment in business structure reforms, we are advancing both the enhancement of capital efficiency and profitability in our existing businesses, and our preparations for a carbon-neutral and circular society. Alongside these investments in business structure reforms, we also place human resources strategy at the core of our management. Through investment in human capital, we are working to maximize employee growth and engagement and to foster the nurturing of personnel that will serve as the source of our competitive strength. To accelerate our management strategy, centered on both business structure reform and human resources strategy, we are also pursuing digital transformation (DX) and enhancing our governance framework to evolve our business platform, thereby laying the foundation for continued transformation.
Previous Medium-term Management Plan
Vision for 2030: Your Reliable Partner for a Brighter Future
Social implementation for 2050
Vision for 2050: Shaping Change
Medium-term Management Plan period (FY2023-FY2025)
Three business domains for 2050
NH3
Diverse resource conservation / circulation solutions
Energy one step ahead
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 9
Message from the Chairman ■ Message from the President
Message from the President
Reflecting on the Second Year of the Medium-term Management PlanInvestments in Business Structure Reforms
To ensure a stable supply of energy and materials, it is crucial to further enhance the capital efficiency and profitability of our existing businesses. In the second year of our Medium-term Management Plan, we focused on strengthening our earnings base by advancing three key initiatives: enhancing the competitiveness of our refining and manufacturing sites, maintaining and reinforcing our service station network while improving customer experience value, and expanding our functional materials and advanced materials businesses. In addition, to achieve a carbon-neutral society by 2050, we screened the 16 projects identified at the time of the current Medium-term Management Plan's release in November 2022 and, in FY2023, designated four key areas: blue ammonia, e-methanol, sustainable aviation fuel (SAF), and lithium solid electrolytes. We have made steady progress in each of these four businesses.
Investments in Human Capital
We place great importance on practicing People-Centered Management, where people are developed through the course of business. Under the current Medium-term Management
Plan, we are advancing initiatives built around three pillars: embodying our corporate philosophy and vision, deepening DE&I (diversity, equity & inclusion), and enabling each individual to fully demonstrate their abilities and uniqueness. Through our business, we aim to develop individuals who can overcome challenges regardless of the environment, and for each employee to become Your Reliable Partner for a Brighter Future.
Evolution of Our Business Platform
Our business platform, which forms the foundation of both our Investments in business structure reforms and investments in human capital, is being upgraded to respond to changes in the energy and industrial landscape. We are rebuilding our IT infrastructure and leveraging various digital tools to improve the quality of work and transform our business model. At the core of this transformation is the power of people, and we view the nurturing of digital transformation (DX) personnel as essential. More than 4,000 employees have completed DX literacy training, and we are working to enhance productivity and create new value through the use of AI.
Toward the Next Medium-term Management Plan We plan to announce our next Medium-term Management Plan in spring 2026. In the near term, we expect the management environment to remain uncertain, with factors such as the global pushback against excessive decarbonization
projections, and building the necessary supply systems for commercialization will require careful, demand-driven decisions. Under the new management structure, we will strive to embody our visions of Your Reliable Partner for a Brighter Future and Shaping Change by maintaining a high-level balance between the immediate need to ensure a stable supply of energy and materials and the development of next-genera-tion fuels, moving both initiatives forward with strength and determination.
Message to Our StakeholdersPrecisely because we live in a time of uncertainty and disorder, it is essential that we show how we will realize and demonstrate to society our 2030 Vision: Your Reliable Partner for a Brighter Future and our 2050 Vision: Shaping Change. As we adapt to the transition toward a carbon-neutral society, we will continue to leverage our diverse business portfolio to ensure even greater stability and efficiency in the supply of conventional energy and materials. This is not a challenge that can be easily overcome, but I firmly believe it is something only Idemitsu can accomplish. I also intend to carry forward the team-based management approach championed by former President Kito and use the collective strengths of the entire Idemitsu Group to navigate these difficult times.
To move forward into an unpredictable future, co-creation
2030
1 Investments in
business structure reforms
Practice of
ROIC-based management
Our value proposition
Social implementation capabilities
2 Investments in
human capital
Maximizing employee growth and engagement
3 Evolution of our business platform
Vision:
Your Reliable Partner for a Brighter Futuremomentum and the United States' tariff policies. Nevertheless, achieving carbon neutrality by 2050 remains a shared mission for the world and one that has not changed. At the same time, we believe there should be flexibility in how we envision 2030 and 2040-key milestones on the path to 2050-as well as in the pace at which we move toward them. For example, with electricity demand expected to rise due to the advancement of AI technologies, fossil fuels are likely to continue playing a significant role in society. The timing of increased demand for next-generation fuels may be delayed compared to earlier
with all our stakeholders will be essential. We will continue to deepen our communication with stakeholders through initiatives such as ESG Top Seminars featuring outside directors and live seminars hosted by the president. The insights gained through these dialogues are being applied to management improvements and are also being integrated into our communication with employees. We will remain steadfast in practicing People-Centered Management and move forward as one Group. I sincerely ask for your continued understanding and support.
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 10
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Business Structure Reforms
At Idemitsu Kosan Co.,Ltd., we believe that enhancing the capital efficiency and profitability of our existing businesses is essential to ensuring a stable supply of energy and materials. At the same time, with a view toward realizing a carbon-neutral and circular society, we are advancing the transformation of our business portfolio through the social implementation of our three business domains: Energy one step ahead, Diverse resource conservation/circula-tion solutions, and Smart Yorozuya.
11 Message from the CFO
Initiatives for Achieving Carbon Neutrality by 2050
Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation
FY2024 Review of Operations
Petroleum Segment
Basic Chemicals Segment
Functional Materials Segment
Power and Renewable Energy Segment
Resources Segment
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 11
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Message from the CFO Executing a sophisticated financial strategy to further enhance capital efficiency and sustainably increase corporate valueManaging Executive Officer Chief Financial Officer Financial Strategy
Takashi Sakata
Forecasts for FY2025 | FY2024 | FY2025 (forecasts) | Change | |
Operating + Equity Income* | 214.7 billion yen | 147.0 billion yen | -67.7 billion yen | |
Net income* | 124.8 billion yen | 120.0 billion yen | -4.8 billion yen |
Three Year Cumulative Total of the Medium-term Management Plan (FY2023-FY2025) | Initial Plan | Latest Forecasts | Change | |
Operating + Equity Income* | 560.0 billion yen | 672.2 billion yen | +112.2 billion yen | |
Net income* | 380.0 billion yen | 436.9 billion yen | +56.9 billion yen | |
Cash flow | 910.0 billion yen | 1,345.2 billion yen | +435.2 billion yen |
*Excluding inventory impact
ew of FY2024 and Progress on the ium-term Management Plan Revi MedOp totale decre FY20
as the Segm ket co coal p our eff succe
lion ye
erating + equity income, excluding inventory impact, d 214.7 billion yen in FY2024. While this represents a ase compared to the record-high 310.6 billion yen in 23, the decline was mainly due to external factors, such reversal of the positive time lag effect in the Petroleum ent from the previous fiscal year, sluggish product mar-nditions in the Basic Chemicals Segment, and falling rices in the Resources Segment. However, we believe orts to strengthen innate profitability have steadily been ssful. As a result, we achieved profit exceeding 200 bil-n for the two consecutive years, which we view as solid
progress in the second year of the current Medium-term Management Plan (hereinafter, the Current Plan). With regard to ROIC management, we have set KPIs for each business unit and are monitoring progress quarterly, resulting in higher awareness toward capital efficiency not only among management but also across individual employees. In addition, we have pursued greater business platform in finance and accounting departments by streamlining operations through digital technology and providing timely information to support quicker management decision-making.
Meanwhile, our FY2025 earnings forecast for operating + equity income has been revised downward to 147.0 billion yen from what we announced in May 2024, to reflect risks such as the negative time lag impact caused by falling crude oil prices due to U.S. tariff policy trends as of April. Forecast of net income excluding inventory impact is 120.0 billion yen, which doesn't reach the target of 170.0 billion yen required to achieve our target ROE of 10%. At this point, we expect FY2025 ROE of around 7%. However, this forecast does not fully
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 12
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Message from the CFO
incorporate potential upside from additional initiatives such as stable operations of refineries and complexes, expansion of our overseas trading business, and acceleration of M&As. Through these efforts, we aim to further improve our profitability.
Although we expect a short of our single-year target for FY2025, the 3-year cumulative profit and cash flow for the entire period of the Current Plan are expected to significantly exceed the initial plan, supported by steady progress until FY2024.
Initiatives to Enhance Corporate and Shareholder ValueUnder the Current Plan, we have carried out various initiatives on both "R" (Return: business strategy) and "E" (Equity: capital and financial strategy), in order to enhance corporate and shareholder value-particularly by improving ROE, a capital efficiency indicator.
Business strategy: efforts to improve profitability ("raise R")
In the Petroleum Segment, we have steadily passed costs on through pricing, resulting in stable domestic margins. We are also focusing on expanding our trading business to capture demand from growing overseas markets, which is becoming a central pillar of the segment. In March 2024, we shut down the refining operations at Seibu Oil, realigning our supply capacity with the decline in domestic demand for petroleum products, thereby boosting the overall refinery utilization rate across the Group.
In the Functional Materials Segment, we are improving our portfolio by expanding overseas sales of lubricants. As for
Advanced Materials & Performance Chemicals, we have almost completed our withdrawal from unprofitable businesses and it is turning into a growth phase. As for M&As, aligned with the Medium-term Management Plan, we welcomed AGRO-KANESHO CO., LTD. (AK), which we expect to generate synergies with our existing business, into our group in FY2024.
In the Resources Segment, we are to increase our ownership in the Boggabri Mine in New South Wales, Australia, from 80% to 90%, thereby enhancing the stable supply system for high-grade coal to Japanese customers and supporting profit. Meanwhile, progress in achieving profitability of Nghi Son Refinery, one of our structural challenges, is behind to the plan. Considering this as one of the critical management issues, we will strengthen our efforts so that we can disclose
a clear path during FY2025.
Capital and financial strategy: optimization of shareholders' equity ("optimize E")
To ensure a stable financial base for steady progress of business restructuring, we have improved capital efficiency by maintaining our current credit ratings (R&I: A / JCR: A+). Specifically, during the current three-year Medium-term Management Plan period (FY2023-FY2025), we set a shareholder return policy targeting a total return ratio of at least 50% of net income (excluding inventory impact) and announced plans to control shareholders' equity at 1.7 to 1.8 trillion yen to accommodate business transformation and business risk. In addition to the shareholder return policy stated above, we announced and completed an additional share buyback totaling 140 billion yen in FY 2024. Notably, half of this amount (70 billion yen) was repurchased through an ASR (Accelerated Share Repurchase) scheme-an industry first-enabling swift optimization of share-holders' equity and early improvement of ROE. We believe these efforts were effective in terms of both securing a solid financial
base and improving capital efficiency.
ROE trends and evaluation
As outlined above, we have pursued improvements in ROE through both business and financial strategies. Although we have not reached the ROE target of 10% in FY2025 alone, we recognize that our innate capital efficiency has improved steadily from the previous Medium-term Management Plan period to the current one.
We forecast an averaged ROE of just under 9% (excluding inventory impact) for the current Medium-term Management Plan period (shown in gray on the graph) as we did in the previous Medium-term Management Plan period. However, if we adjust for significant external factors from the previous and current Medium-term Management Plan periods, such as the historically high coal prices that peaked in FY2022, the corrected averaged ROE would be around 8% (shown in red on the graph).This represents a significant improvement over the previous Medium-term Management Plan period, thanks to the stabilization of domestic petroleum product margins, structural reforms, including withdrawal from unprofitable businesses, and optimization of shareholders' equity.
Going forward, we aim to realize further profit improvement by enhancing refineries and complexes utilization, expanding overseas trading, accelerating M&A, and ultimately achieving an ROE of 10% and a PBR of at least 1.0x as quickly as possible.
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 13
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Message from the CFO
ROE (excluding inventory impact) ■ ROE ■ (Reference) ROE adjusted for coal price
Averaged ROE for the period
(Reference) Averaged ROE for the period
[Previous Medium-term
Management Plan period]
[Current Medium-term
Management Plan period]
8.7
8.5
7.9
5.5
7.0
(%)
14
12
10
8
6
4
2
0
design of a large-scale pilot plant within FY2024 and have decided to build a large-scale production facility for lithium sulfide, a key intermediate material. Development is progressing as planned in collaboration with Toyota Motor Corporation, with practical use targeted for FY2027-FY2028.
For sustainable aviation fuel (SAF), we began basic design work in fiscal 2024 for a production facility at the Tokuyama Complex using the HEFA (Hydroprocessed Esters and Fatty Acids) process. This project has been selected for support under the GX Economy Transition Bonds initiative by Japan's Ministry of Economy, Trade and Industry, marking the foundation for future business development in partnership with government and private-sector stakeholders.
FY2020
FY2021
FY2022
FY2023
FY2024
FY2025 (forecast)
While these investments toward achieving carbon neutrality
*ROE adjusted for coal price: calculated using the assumed coal price of $95/t for FY2025
Growth investments toward future business transformation
From the 16 projects identified in the November 2022 Medium-term Management Plan announcement, we selected four as key areas in FY2023: blue ammonia, e-methanol, SAF, and lithium solid electrolytes. We are steadily advancing efforts in each of these areas.
For blue ammonia, we are considering transforming our Tokuyama Complex into a supply hub and building infrastructure to supply ammonia to companies in the Shunan Complex. Alongside Mitsubishi Corporation, we are also working to
participate in ExxonMobil's blue ammonia production project, to establish a supply system exceeding one million tons per year by 2030.
We are considering procuring e-methanol from overseas. For example, we have made a joint investment with JOGMEC in HIF Global, a leading developer of synthetic fuel manufacturing projects based on renewable energy. We are also exploring domestic production in the Tomakomai area of Hokkaido, where we plan to build a hydrogen supply chain and e-methanol production facility.
In the lithium solid electrolyte business, we began basic
by 2050 are critical, they will take time to contribute meaningfully to earnings. Until then, it will be vital to fully leverage profit opportunities in existing businesses. These include expanding overseas trading to capture international demand, restructuring our basic chemicals business, pursuing M&A with near-term earnings contributions, and entering upstream oil and gas projects in Malaysia. We also plan to explore the expansion of our resource business in combination with carbon capture and storage (CCS).
Going forward, while continuing to make investments based on ensured profitability, we will also pursue selection and concentration-including in existing businesses-and implement management that is conscious of cost and capital and stock price.
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 14
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Message from the CFO
Shareholder ReturnsIn FY2024, we returned over 185 billion yen to shareholders through approximately 45 billion yen in dividends and 140 billion yen in share buybacks. This reflects our policy under the current Medium-term Management Plan to maintain a total return ratio of at least 50% of net income (excluding inventory impact) over the three-year period from FY2023 to FY2025. In addition, we executed an extra 100 billion yen in share buybacks to enhance capital efficiency and optimize our financial structure.
In FY 2024, we increased dividends for the second consecutive year. The annual dividend will be 36 yen per share, which is set at the minimum level during the current medium-term management plan.
For FY2025, we will maintain this policy, keeping the annual dividend at 36 yen per share and executing share buybacks flexibly in response to market conditions.
Dialogue with Capital Markets and External Recognition of IR ActivitiesWe have continuously expanded and enhanced our engagement with investors and analysts in FY2024.
Since 2022, we have led the industry in organizing ESG Top Seminars to facilitate direct dialogue between Outside Directors and the capital markets. At the seminar held in April 2025, we increased the number of Outside Director participants to two and held discussions on topics with high market interests, including progress in business transformation, human capital strategies, and succession planning including top management.
24
60
35
FY2022
FY2023 FY2024 FY2025
36
(forecast)
[Current Medium-term Management Plan period]
36
32
140
In March 2025, we also hosted a site visit to the Nghi Son Refinery in Vietnam for securities analysts. As one of the most advanced refineries in Asia, the visit and direct interactions with local employees provided analysts with a deeper understanding of the business.
We are honored to say that our IR activities were externally
admired, as we were once again awarded the top of the energy sector in Excellence in Corporate Disclosure ranking by the Securities Analysts Association of Japan in 2024. We would like to express our sincere gratitude for the continuous support and guidance from the capital markets.
We will remain engaged to timely and appropriate disclosure and will make company-wide efforts to enhance the value of our information disclosure and the quality of our engagement. We appreciate your continuous support.
Shareholder Return Policy
Total payout ratio of at least 50% of cumulative net income excluding inventory impact in FY2023-2025
Presenters (from left): Masahiko Sawa (Executive Vice President), Takeo Kikkawa (Outside Director), Jun Suzuki (Outside Director)
Execute in a flexible manner while monitoring the stock price
Annual dividend of 36 yen per share, with this amount set as the minimum level
Dividends
Dividend per share (yen)*1
Share buybacks
*1. Figures reflect per-share amounts adjusted for past stock splits.
*2. Buyback amounts are based on approved and publicly announced figures.
Share buyback amount (billion yen)*2
Group photo from the Nghi Son Refinery site visit with securities analysts and Idemitsu Group employees
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 15
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Initiatives for Achieving Carbon Neutrality by 2050
Managing Executive Officer
Junzo Yamamoto
To become a leading player in energy and carbon neutral (CN) solutions as we work toward a carbon-neutral and circular society by 2050, we are advancing the social implementation of Energy One Step Ahead. Specifically, we have identified three Major strategies for CN-blue ammonia, e-methanol, and sustainable aviation fuel (SAF)-and are working toward early implementation by 2030, with commercialization anticipated in the 2030s and beyond. As we develop these businesses, we closely monitor global trends, including the retreat in decarbonization momentum and potential deglobalization under a future Trump administration, as well as domestic policy developments such as the 7th Strategic Energy Plan and GX2040, to inform our decision-making.
Our refineries and complexes have long grown together, supported by local communities. The knowledge, experience, technical capabilities, and infrastructure we have built over the years represent valuable assets for achieving carbon neutrality by 2050. Working in partnership with national and local governments, as well as related companies in Japan and overseas, relationships built on trust over many years, we are advancing our CNX Center initiative.
CNX Center ConceptBlue ammonia
Participating in a clean hydrogen and ammonia project promoted Blue ammonia supply chain image
by ExxonMobil in collaboration with Mitsubishi Corporation, with plans to procure ammonia
Working with Tosoh Corporation, Tokuyama Corporation, and Zeon Natural gas Manufacturing blue Domestic
Corporation to examine the development of an ammonia supply hydrogen / ammonia Oura Area, customers
hub in the Shunan Complex, targeting a supply system exceeding Tokuyama Complex
one million tons annually by 2030 Texas, USA: ExxonMobil, Mitsubishi Corporation
E-methanol
Exploring local production of green hydrogen and synthetic fuel Domestic green hydrogen production Synthetic fuel production
(e-methanol) for local consumption in Tomakomai, Hokkaido, an Water Methanol Marine fuel
area with high renewable energy potential, in collaboration with electrolysis Synthesis e-methanol
partner companies MTG*, etc e-gasoline
Jointly investing with JOGMEC in HIF Global, a company advancing Advanced CCS Project import e-SAF
synthetic fuel manufacturing projects, and considering the procure- CO2 separation Synthetic
and capture chemicals
ment of e-methanol from overseas Storage in Tomakomai Offshore* *Methanol to Gasoline
SAF
SAF production using HEFA technology
Working toward establishing a domestic supply system with an squeezing
annual capacity of 500,000 KL by considering the construction of Business Waste cooking oil, plant residues, etc. Ingredient oil and fat HEFA Neat SAF Blended SAF
production facilities at both the Chiba Complex (ATJ process) and development toward processed
2030 SAF production using ATJ technology
Tokuyama Complex (HEFA process) saccharification and
Carrying out initiatives to develop a global supply chain, including Secure stable and fermentation
efficient raw materials Sugars such as sugar cane Bio-ethanol ATJ processed Neat SAF Blended SAF
initiating pilot planting of pongamia trees in Australia with U.S.-
based Terviva Inc. and Australia's Stanmore Resources Ltd. to Direction of e-SAF production made from methanol
expansion toward Methanol
secure stable long-term feedstock 2050 Synthesis
e-methanol MTJ processed Neat SAF Blended SAF
Our CNX Center concept aims to repurpose our refineries and complexes, which have long operated as fossil fuel production hubs, into new supply bases for carbon-neutral fuels and products by leveraging their existing strengths and characteristics. Each site will develop new supply chains tailored to the unique features and demands of its industrial complex, thereby contributing to the transformation to CN across the entire complex.
Ammonia Hydrogen
Bio and synthetic fuels
Bio and synthetic chemistry SAF
Plastic recycling Renewable energy Biomass
Chugoku
Hokkaido
Hokkaido refinery
Kanto
Aichi
Tokuyama complex complex
Yokkaichi
Chiba complex Keihin refinery
Sanyo-Onoda complex
refinery
Chubu
CNX Center concept image
Key CN BusinessesFY2024 Initiatives
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 16
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation
Senior Managing Executive Officer and President, Advanced Materials Company
Hajime Nakamoto
As the business environment becomes increasingly uncertain, we recognize that transforming our business structure to flexibly respond to change and building a foundation for future growth and development are critical management priorities. To date, we have worked to improve our business structure by selectively focusing resources on core businesses to ensure stable earnings and cash flow.
Looking ahead to the creation of new value and businesses, we are advancing a transformation of our business portfolio in the advanced materials domain. For solid electrolytes used in next-generation batteries, we are accelerating development efforts while working to establish the necessary technologies and build a value chain toward mass production.
As part of our R&D restructuring, we have established the Innovation Center ahead of the scheduled completion of a new integrated laboratory (planned for the end of FY2027), which will serve as a hub for technological convergence. This new organization integrates several existing units and redefines the roles and functions needed for R&D, and the creation of new businesses, thereby contributing to the acceleration of our Group's business portfolio transformation. We will continue to work towards becoming a business entity capable of delivering sustainable growth, enhancing corporate value, and contributing to society.
Taking on the Future in the Advanced Materials DomainTo drive the growth of our functional materials business, we are pursuing business transformation across each field within the advanced materials domain.
In the electronic materials business, we are transitioning to a more locally integrated business model in Korea and China, the primary markets for organic EL products. By engaging more closely with local customers, accurately understanding market needs, and collaborating with local companies, we aim to better meet demand. In the pesticides and functional feed business, we made Agro-Kanesho Co., Ltd. a wholly owned subsidiary in February
2025. By leveraging synergies with SDS Biotech K.K., which is our subsidiary, we aim to expand distribution channels in Japan and scale up operations overseas, contributing to food security and supporting people's daily lives.
All-solid lithium batteries are next-generation batteries expected to overcome many of the challenges faced by conventional liquid lithium-ion batteries. We are advancing the development of solid electrolytes, which are key materials for all-solid lithium batteries, and in 2023 announced a collaboration with Toyota Motor Corporation. Our goal is to begin practical use of electric vehicles (EVs) equipped with all-solid lithium batteries using our solid electrolytes between 2027 and 2028, thereby contributing to global carbon neutrality.
Restructuring R&D to Accelerate InnovationAhead of the scheduled completion of our new integrated laboratory at the end of FY2027, we established the Innovation Center in July 2025 as a new organization that integrates the Advanced Technology Research Laboratories, which promote medium- to long-term research, the Innovation Strategy Department, which oversees R&D strategy development, and the Intellectual Property Department, which handles IP strategy. This new structure enhances our ability to allocate resources strategically and accelerates initiatives focused on social implementation.
Roadmap for commercialization of solid electrolytes
Present time
2027-2028
2030
Research and development (materials and mass production technology)
Material manufacturers
Joint development
Small pilot facilities
Market launch Automobile / battery manufacturers
Provision of
Commercialization
Commercialization
materials
Idemitsu
Feedback
Mass-production /
Commercialization
Plant 1 Plant 2
November 2021: Operation launched July 2023: Operation launched FY2024: Capacity increased FY2027: Capacity Increase Plan*2
Lithium sulfide production facility*2 (Raw material for solid electrolytes) February 2025: Construction decided
Large pilot facility*1
October 2024: Start of basic design (Final Investment Decision (FID) is expected by the end of 2025)
*1 Adopted by GI fund, which is Green Innovation Fund Project "Next-generation Storage Battery and Motor Development"
*2 Certified by "Supply Security Plan for Storage Batteries" from METI
Image of the integrated laboratory
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 17
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Composition of Net Sales
Resources, Others
Composition of Operating + Equity Income
(excluding inventory impact)
Trends in Net Sales and Operating + Equity Income
(consolidated)
Composition of Net Sales by Region
Power and renewable energy 1%
Functional materials 6%
3% Others, adjustments -10%
Resources 36%
(Billions of yen)
9,,456..3
8,,719..2
363.0
9,,190..2
North America 9%
308.4
310.6
252.7
184..8 214..7
Asia and Oceania
Others 1%
Basic chemicals
6%
9,190.2
billion yen
(FY2024)
Petroleum 84%
Power and renewable energy
-6%
Functional materials 13%
214.7
billion yen
(FY2024)
Petroleum 71%
Basic chemicals -4%
2022 2023 2024 (FY)
Including inventory impact
Excluding inventory impact
Net sales19%
FY2024
Japan 71%
Trends in Net Sales and Operating + Equity Income Competitive Advantages Manufactured Capital (as of the end of March 2025)
Group refineries
(10 thousand barrels per day)
* The total processing capacity when adding the capacity of Fuji Oil Company, Ltd., with which Idemitsu has concluded a petroleum products trading agreement, is 968,000 barrels per day (bpd).
Petroleum Segment
P.18-19
Net sales ■ Including inventory impact ■ Excluding inventory impact
7,403.9
7,080.8
219.7
122.1
73.0 17.3
167.2
152.0
(Billions of yen)
Basic Chemicals Segment
P.20
(Billions of yen)
7,696.4
2022 2023 2024 (FY)
Domestic Location
Overseas Location
Domestic | Chemical product | Production capacity |
Olefins | Ethylene | 997 |
Aromatics | Paraxylene | 836 |
Mixed xylene | 688 | |
Benzene | 1,020 | |
Styrene monomer | 550 | |
Cyclohexane | 240 |
Overseas | Chemical product | Production capacity |
Aromatics | Paraxylene*2 | 700 |
Benzene*2 | 88 | |
Styrene monomer | 240 |
Net sales ■ Operating + equity income
5 group refineries and network of 31 oil terminals across Japan
Overseas
Location
Crude oil processing capacity
Nghi Son Refinery
(Nghi Son Refinery and Petrochemical LLC)
Thanh Hóa, Vietnam
20.0
Total
20.0
Domestic
Location
Crude oil processing capacity
Hokkaido Refinery
Tomakomai City, Hokkaido
14.0
Chiba Complex
Ichihara City, Chiba Prefecture
19.5
Aichi Complex
Chita City, Aichi Prefecture
16.5
Yokkaichi Refinery
(Showa Yokkaichi Sekiyu Co., Ltd.)
Yokkaichi City, Mie Prefecture
25.5
Keihin Refinery (TOA Oil Co., Ltd.)
Kawasaki City, Kanagawa Prefecture
7.0
Total
82.5*
Approx. 6,000 service stations across Japan with the second largest share of the market
Mainstay chemicals production capacities*1
(Thousand tons/year) Group petrochemical bases
*1. Including products manufactured at Group refineries
*2. Production capacity does not take into account the investment ratio for the equipment.
An established global business with proven experience over many years
A developed value chain from
601.6
587.2
22.0
10.1
-8.0
666.9
2022 2023 2024 (FY)
crude oil and naphtha to synthetic resins
Chiba Complex
Ichihara City, Chiba Prefecture
Tokuyama Complex
Shunan City, Yamaguchi
Prefecture
Aichi Complex
Chita City, Aichi Prefecture
Hokkaido Refinery
Tomakomai City, Hokkaido
Showa Yokkaichi
Sekiyu Co., Ltd.
Yokkaichi City, Mie
Prefecture
TOA Oil Co., Ltd.
Kawasaki City, Kanagawa
Prefecture
Idemitsu SM(Malaysia) Sdn. Bhd. Petrochemicals(Malaysia) Sdn. Bhd. Idemitsu Chemicals(M) Sdn. Bhd.
Johor, Malaysia
Nghi Son Refinery (Nghi Son Refinery and Petrochemical LLC)
Thanh Hóa, Vietnam
Integrated operation of petroleum refining and petrochemicals
Early implementation of a resource circulation supply chain through collaboration with the Petroleum Segment
Functional Materials Segment
P.21-25
(Billions of yen)
511.0
Net sales ■ Operating + equity income
Lubricants
Electronic Materials
Advanced Materials & Performance Chemicals
Bitumen
Pesticides and Functional Feed
Lithium-ion Battery Materials
Competitive advantages
solve the on-site challenges and meet the needs of customers
sales system
cost-competitiveness
formance asphalt
and proposal capabilities that meet customer needs
ing out battery material development and battery evaluation in parallel
Manufactured capital
Vietnam, India, Indonesia and America
Thailand
* Pilot facilities
Capacity of the group power generation facility portfolio*1
sources within our Group *2 Geothermal power generation is a business within the
business steam for power generation is supplied to energy
companies.
Manufacturing, sales, and research and development network spanning the globe
Development of lubricant products that
OLED blue light-emitting material technologies
Integrated overseas manufacturing and
Material development capabilities that meet market needs
Production system with high
Integrated production and sales system from development to manufacturing and sales
Development technologies for high-per-
Numerous agrochemical ingredients developed and patented
Research and development capabilities
Integrated solid electrolyte manufacturing technologies covering raw materials to finished products
Development system capable of carry-
Domestic: Chiba (Ichihara), Kanagawa (Kawasaki and Yokohama), Fukuoka (Moji) and Hyogo (Kobe)
Overseas: China, Taiwan, Thailand,
Domestic: Shizuoka
Overseas: Korea and China
Domestic: Chiba (Ichihara, Kujukuri and Hasunuma), Kanagawa (Kawasaki), Mie (Kameyama), Hyogo (Himeji) and Yamaguchi (Shunan)
Overseas: China, Malaysia and
Domestic: Mie (Yokkaichi), Chiba (Sodegaura) and Yamaguchi (Sanyo-Onoda)
Overseas: Malaysia
Domestic: Kanagawa (Yokohama)
Domestic: Chiba*
Cost competitiveness of power Type of power generation Unit: 10,000 kW Type of power generation Unit: 10,000 kW *1 Totals of Idemitsu's owned (or contributed) capacity
Sales channels in the petroleum Resources Segment. Additionally, 27,000 kW worth of
Experience and knowledge in power source development in Japan and overseas
515.4 503.4
27.6
28.2
17.0
Power and Renewable Energy Segment
P.26
(Billions of yen)
2022 2023 2024 (FY)
Net sales ■ Operating + equity income
197.1
141.5
127.6
0.5
-7.6
-12.3
Domestic solar power
18.7
Overseas solar power
51.4
Solar power (subtotal)
70.1
Biomass power
10.3
Wind power
2.0
Geothermal power*2
0.5
Renewable energy (subtotal)
82.9
Domestic thermal power generation
58.1
Overseas thermal power generation
27.1
Thermal power generation (subtotal)
85.2
Domestic power generation capacity (total)
89.7
Overseas power generation capacity (total)
78.5
Power generation capacity (total)
168.1
2022 2023 2024 (FY)
Resources Segment
P.27
(Billions of yen)
672.1
Net sales ■ Operating + equity income
Knowledge and achievements in energy resources businesses accumulated over more than 40 years
Low-carbon solution technologies
370.5
230.9
265.2
116.9
77.4
Business foundations in Vietnam and Australia
Oil and gas production volume Coal production volume
Name
Location
Production volume (thousand ton)
FY2024
Boggabri Mine
Australia
5,796
Name
Location
Production volume (thousand BOE*1/day)
FY2024
Vietnam Gas Field
Off the coast of southern Vietnam
13.5
Norway Oil and Gas Field *2
Norwegian North Sea
12.4
Total
25.9
*1. Figures based on the Group's equity interests
*2. The volume was from January to December as the fiscal year ends in December
*1. Barrels of oil equivalent
*2. Figures are based on equity interests held by resource development subsidiaries.
2022 2023 2024 (FY)
Norway's volume was from January to December, and Vietnam's volume was from April to March due to
a change of the fiscal year end.
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 18
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Petroleum Segment
Main Businesses
Managing Executive Officer
Petroleum Marketing Strategy
Yoshimasa Kokubo
Crude oil procurement, refining and distribution of petroleum products
Sale of gasoline, kerosene, diesel oil and automotive lubricants to service stations
Sale of industrial kerosene, diesel oil, heavy oil and other products
Sale of aviation and marine fuel
Sale of low-carbon fuel
was made an equity method affiliate. We are working on optimization of crude oil and naphtha procurement, and regular maintenance work, to maximize synergies that benefit both
companies.
The Petroleum Segment's mission is the stable supply of energy necessary for our economic activities. While fulfilling this responsibility, we are working to strengthen the competitiveness of our refining and manufacturing base, expand our global business, and promote sales strategies that enrich lifestyles, and further improve profitability.
List of oil refineries in Japan
Hokkaido Refinery
Building a Highly Competitive Refining and Manufacturing SystemOptimization of refining capacity
Demand for petroleum products is expected to gradually decline in the medium- to long-term in Japan. Against this backdrop, we sought to optimize our group's supply system with the cessation of refining at Seibu Oil Company Limited Yamaguchi Refinery (crude oil processing capacity: 120,000 barrels per day) in March 2024. Since the shutdown, the average operating rate of our group's refineries has improved. Meanwhile, even after the shutdown of refining, Yamaguchi Refinery continues to function as a petroleum terminal and stockpiling depot as Sanyo-Onoda Complex to contribute to stable supply. Furthermore, in FY2024, Fuji Oil Company, Ltd.
Continuation of safe and stable operations
We consider the safe and stable operation of our refineries and complexes to be our most important management issue. We tackle our work with a safety-first mindset every day. Together with this, we aim to improve operational reliability by enhancing security management, operation management and facility management for even safer and more stable operations. We also work on developing human resources and implementing thorough compliance as the foundation for continuing those activities.
In addition, we consider business continuity plans (BCPs) to prepare for natural disasters and other business risks. Furthermore, we also work on DX. This includes, for example, the early detection of signs of abnormality without being reliant on the experience or eyes of humans by using image analysis.
Showa Yokkaichi Sekiyu Co., Ltd.
Yokkaichi Refinery
TOA Oil Co., Ltd. Keihin Refinery
List of results for sales volume
(1,000 kL)
FY2023
FY2024
Change
Gasoline
12,597
12,355
(242)
-1.9%
Naphtha
351
648
+297
+84.8%
Jet Fuel
2,502
2,409
(92)
-3.7%
Kerosene
3,557
3,379
(178)
-5.0%
Diesel Oil
10,031
10,028
(4)
-0.0%
Heavy Fuel Oil A
3,135
3,135
+0
+0.0%
Heavy Fuel Oil C
2,359
1,792
(567)
-24.0%
Total Domestic Sales Volume
34,532
33,747
(786)
-2.3%
Exported Volume
7,477
5,841
(1,636)
-21.9%
Total Sales Volume
42,009
39,588
(2,422)
-5.8%
Chiba Complex
Seibu Oil
Company Limited
Sanyo-Onoda Complex
Fuji Oil Company, Ltd. Sodegaura Refinery
Aichi Complex Tokuyama Complex
Seibu Oil Company Limited Sanyo-Onoda Complex
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 19
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Petroleum Segment
Overseas Business ExpansionNSRP's initiatives
Nghi Son Refinery, operated by our equity method affiliate Nghi Son Refinery and Petrochemical LLC (NSRP), plays an important role as an energy supply base that covers approximately 35% of the demand for petroleum products in Vietnam. After its first Turn Around in 2023, the refinery has consistently operated at high capacity to meet the strong domestic demand in Vietnam. It reached 20 million safe manhours milestone in the first quarter of FY2025. NSRP will continue to operate safely and stably while working on measures to improve profits including the financial cost reduction.
Nghi Son Refinery
Implementing Sales Strategies in Japan to Enrich LifestylesExpansion of Smart Yorozuya Strategy and Drive On The strength of our sales departments is the network of approximately 1,000 dealers familiar with their local areas and the approximately 6,000 service stations located across Japan. With the slogan, "Various a! in this town," service stations continue to steadily supply the fuel needed by local communities, while working to evolve into Smart Yorozuya that provides diverse services to meet local needs by taking advantage of their highly convenient locations. For example, apol-loONE stations, which specialize in mobility services other than refueling, are divided into five business categories including car washing, coating and car sharing. There are 18 apolloONE stations specializing in each of these categories across Japan. Moreover, we have opened environmentally-friendly apollostation Type Green service stations that use as much locally-sourced wood as possible in 12 locations across Japan. We work closely with our long-time partner dealers to evolve into Smart Yorozuyas that meet the diverse needs of local
communities.
apolloONE Kagoshima Chuo Eki Nishiguchi (Kagoshima City, Kagoshima Prefecture): a rental car shop that opened in October 2024
We also work to spread and expand the use of our official Drive On app. Drive On was born from our desire to further enrich the travel and refueling experiences of our customers rather than simply using service stations as a place to refuel. We have also started a membership status program for the first time in the industry. The Drive On application has been download over 11 million times to date. Drive On will support the convenient and cost-effective customer experience at our service stations as they evolve into Smart Yorozuya.
Taking on the Challenge of Developing apolloONE to Suit Local Needs
We develop the apolloONE mobility service specialty stations that do not offer refueling, highly compatible with customers who use service stations. Our goal is to have 250 stations by 2030. These stores will meet the needs of each community such as vehicle inspections, coatings, used car sales, rental cars and car sharing services. We need to make proposals taking into account various people and information such as the most suitable services for each station location, the desires of dealers and on-site staff, and the actual on-site situation. I find it extremely rewarding to create such unique
YOROZU Promotion Section, stations.
Petroleum Marketing Department We will continue to work to further evolve apolloONE to meet diverse needs such as for the people
S. Takano living in each region, their lifestyles, the management vision of dealers and the thoughts of the staff.
(Affiliations as of June 2025)
Global Trading
We have accumulated a wealth of experience and have a strong track record in international petroleum product trading. Utilizing the specialized knowledge of our group companies from around the world, we conduct a trading business that is responsive to dynamic market changes. We will continue to work to expand profitability while appropriately taking into account the challenges presented by changes in global petroleum supply-demand balances and price fluctuations caused by political, economic, climate and other related factors in the future.
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 20
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Manufacturing and sales of basic chemical raw materials including ethylene, propylene and paraxylene
Manufacturing / sales and building a supply chain of biomass and chemical
recycling products
Executive Officer General Manager of Basic Chemicals Department
Nobuhiro Miyagishi
Basic Chemicals Segment
Main Businesses
Strengthening Competitiveness through Consolidation of Ethylene PlantsWe have a value chain ranging from crude oil and naphtha to synthetic resins, which are the raw materials of plastics. The integration of petroleum refining and petrochemical businesses is one of our core strengths. As demand for petroleum products continues to decline, we aim to maintain and enhance competitiveness in our core business by flexibly adjusting production volumes to meet the demand for fuels and chemicals.
Meanwhile, due to the construction of large-scale petrochemical plants, mainly in China, and the decline in domestic demand, our ethylene plants-core assets of our petrochemical business-are forced to continue operating at low capacity. Therefore, it is necessary to strengthen our competitiveness by optimizing production capacity. Accordingly, in 2024, we began considering the consolidation of ethylene plants with Mitsui Chemicals, Inc., and we are steadily advancing towards the final decision in the second half of FY 2025. As the environment surrounding the basic chemicals business becomes increasingly severe, we will pursue drastic restructuring of our production system through further collaborations with partner companies.
Building a Resource Circulation Supply ChainTo realize a sustainable society, it is essential to build next-generation industrial complexes aiming to circulate resources and reduce CO2 emissions. Therefore, we accelerate the pace of our efforts to implement chemical recycling and biochemicals in society.
In terms of chemical recycling, Chemical Recycle Japan Co., Ltd. (our affiliate company) is constructing production facilities for recycling of used plastics into oil that will process 20,000 tons of used plastics annually, aiming to start commercial production in 2026. The demand for resource circulation is rapidly increasing, and in Europe, various regulations are being
Certified materials
Example of initiatives with Honda R&D Co., Ltd.
promoted and announced, such as the mandatory use of recycled materials in plastics used for new vehicle production. In response to these trends, we began a demonstration experiment with Honda R&D Co., Ltd. in 2024. In 2025, in collaboration with a resource recycler MATEC Inc., Chemical Recycling Japan Co., Ltd., a resin manufacturer Prime Polymer Co., Ltd. (an affiliate of our company), and an automobile manufacturer Honda, we developed a chemical recycling resin compound material derived 100% from end-of-life vehicles*1 and adopted it for the front panel of a platform-type autonomous mobility experimental vehicle (a first in Japan*2). Through collaboration across diverse industries, we will accelerate the establishment of a production system for new "Chemical Recycling products" by re-resourcing used plastics.
Regarding Biochemicals, we work on the sale of products made from imported bio-naphtha as a raw material. In the future, we will aim to establish a production system that utilizes domestically produced bio-naphtha, which is co-produced during SAF production, without relying on imported raw materials.
*1: Using the mass balance method *2: As of 2025 (according to Honda)
Plastics derived from end-of-life vehicles
Pyrolysis oil
Chemical recycling resin compound material derived 100% from
end-of-life vehicles
Front panels
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 21
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Functional Materials Segment
As well as petroleum, basic chemicals and other core businesses, the Idemitsu Group is involved worldwide in the lubricants business with a stable revenue base and the functional materials business with high-growth potential materials. These product groups are based on molecular and material design, organic synthesis, evaluation and analysis and other shared proprietary technologies cultivated in oil refining and petrochemistry.
Lubricants
Electronic Materials
Advanced Materials & Performance Chemicals
Bitumen
Pesticides and Functional Lithium-ion Battery Materials Feed
Lubricants
We have continued to refine technologies for lubricants over more than 110 years since our foundation. This has made lubricants our biggest business in the Functional Materials Segment. Lubricants are essential for manufacturing sites. We have supported an environment which allows our customers to concentrate on manufacturing by providing them with lubricant technologies and products. At present, more than 3,400 Japanese employees and overseas national staff members work to embody the brand message of "The Heart of Technology" for the lubricants business departments through
at present. This is the second time in 23 years that one of our employees has been honored in this way.
WEB
Japan Society of Mechanical Engineers (JSME) website
Moreover, we have frequently visited manufacturing sites and applied the knowledge we have built up and new technologies to produce the Daphne Alphacool NV Series that provides improvements both in terms of the working environment and
management costs. This series won the Grand Award of 'CHO' MONODZUKURI Innovative Parts and Components Awards.
WEB
Grand Award of 'CHO' MONODZUKURI Innovative Parts and Components Awards YouTube (video)
(Japanese only)
Award-winning
Daphne Alphacool NV Series
(Japanese only)
their respective roles.
WEB
The Heart of Technology (video)
Strong Collaboration between Sales and Development & Customer-oriented Lubricant Product Development
Many companies have become increasingly conscious of carbon neutrality in recent times. We have developed the Daphne Alphacool NV Series with the desire to make products that can also contribute
The predecessors in our company continued to sincerely face and solve the immediate issues burdening our customers. That has meant that we have cultivated research, design, evaluation and analysis capabilities in research and development over many years. As a result of building up these capabilities, Yoichiro Jido, a Chief Researcher in the lubricants business department, was awarded the title of "JSME Fellow" in FY2024. JSME is one of the largest academic professional groups in Japan with more than 30,000 registered members
Idemitsu Lube Asia Pacific Pte. Ltd.
T. Okano (left)
Sales and marketing Section, Lubricants Department 2
R. Shinozaki (right)
to carbon neutrality while reflecting the feedback of people actually working at production sites.
We thoroughly investigated the issues from the feedback of the customers who actually used lubricants and the dealers who were involved in selling them in the development of this product. We were then able to realize a formula that could both reduce the amount used and improve the environment and productivity through repeated prototype verification with our customers. We have received many comments about how this product has led to an improvement in the working environment and a reduction in the amount used since we started selling it. We believe that solving this issue using the real feedback from the field in this way led to us receiving this award.
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 22
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Functional Materials Segment
Lubricants
There was a tough business environment in FY2024 with declining demand due to restrictions on exports to Russia, certification fraud by automobile manufacturers and other factors. In the face of this, we continued to work on various operational efficiency improvements and manufacturing cost reductions. In this way, we steadily maintained and improved profitability. In the sales area, we aim to discover on-site needs on the front line and then create added value in addition to promoting our advanced products to customers. Another reason for our advanced technological capabilities is that our research and development bases in Japan, the United States, China and Singapore and our sales bases in each country exchange information and human resources. We work closely with sales personnel from dealers, and Japanese and overseas sales engineers and national staff members, manufacturing personnel, and after-sales service personnel. At times, we assemble in-house almost the same machines as used by our customers and then conduct demonstration experiments on them. The strength of our lubricant
low environmental impact and other needs sought by existing internal combustion engines, HEVs and PHEVs.
From Strategic Alliance Agreements to New Business DomainsIt is expected that global demand will increase in the future for industrial lubricants and greases. As such, we plan to further strengthen our business in this area. Industrial lubricants have a wide range of applications. In addition to performance aspects, we are required to provide multifaceted solutions such as know-how including technical support and an extensive product lineup to suit the needs of our customers. As a part of these efforts, we entered into a strategic alliance agreement with Quaker Houghton, a leading company in specialty lubricants in the U.S., in FY2025. Quaker Houghton's processing oils, equipment oils and other oils that are used in the metalwork and automobile and aircraft manufacturing processes by thousands
of companies around the world have been added to Idemitsu's sales lineup. The company will also work together with us to develop new business domains such as aerospace.
We will continue to reach every corner of the globe where lubrication is needed and pool our wisdom to realize lubricants that control friction to an optimal state on a tailor-made basis.
Signing of the agreement with Quaker Houghton
business is that we can propose solutions from various perspectives because we have integrated the processes from research to manufacturing, sales and after-sales support.
We expect demand for engine oil to fall as the switch to electric vehicles advances in the future. Our company leads the world in the development of oil for e-Axle drive units for electric vehicles. We hold a leading share of the market in China where the largest number of electric vehicles are sold in the world. On the other hand, there are currently 1.5 billion passenger cars around the world. It will take 20 years or more by the earliest estimates for the complete switchover in which all new cars are electric vehicles. Of course, we will respond to the transition to a carbon neutral society in a timely manner. However, we also have a responsibility to continue developing and then stably supplying products that satisfy fuel efficiency,
Idemitsu Lubricant (China) Co., Ltd.
Q. Fang (left)
D. Takekawa (right)
Development of Oil Exclusive to e-Axle in the World's Number One Electric Vehicle Market
Our ILC is a fully integrated base combining research and development, manufacturing, and sales functions. We are responsible for the entire market in China. Above all, the electric vehicle field is our main market.
China's electric vehicle market is rapidly growing. It is the number one market in the world. We were one of the first to develop an oil exclusive to e-Axle that was the drive unit of electric vehicles. We hold a leading share of the market in China where competition is intensifying. e-Axle oil needs to be compatible with various components in units. We have worked with our customers on development through repeated trial and error many times. As a result, our products have been adopted by major Chinese automobile manufacturers. We are also rolling out products originating from China both in China and on the global stage.
We will continue going forward to strive to provide value as a comprehensive lubricant manufacturer by combining both advanced research and development and stable manufacturing and supply.
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 23
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Functional Materials Segment
Electronic Materials
Advanced Materials & Performance Chemicals
Developing OLED Materials over 40 YearsAfter the oil crises in the 1970s, we intensified our search for new businesses outside of energy. As part of this effort, we began researching electronic materials focusing on the organic compounds contained in petroleum. In 1997, based on our strength in molecular design technology, we succeeded in developing a blue-light emitting material for OLED later to be called "Idemitsu Blue." Blue OLED is said to consume the greatest amount of power and to be the most difficult to emit of the three primary colors of red, green and blue. Idemitsu Blue was adopted in the world's first OLED television sold in 2007. One of our employees was awarded the Medal with Purple Ribbon for his contribution to its practical application in 2024. We have continued to develop OLED materials to improve their performance
since then. In 2022, we achieved the world's highest level of luminous efficiency and long life with a new light-emit-ting method (stacked light-emitting element) using stacked light-emitting layers. This achievement won the Distinguished Paper Award in the OLED technology category at the Display Week 2025 symposium organized by the Society for Information Display that is the world's largest display-related academic society.
Display Week 2025 award ceremony
Expanding OLED Applications and Developing OLED-related MaterialsThe OLED market is expected to continue growing. The shifting from LCD to OLED displays is underway in smartphones. Furthermore, OLED displays are increasingly being adopted in tablet devices, laptops, in-vehicle displays and other devices. The characteristics required for OLEDs vary depending on the device, application and manufacturer. We provide high-added-value OLED materials that meet the diverse needs of our customers. Moreover, the oxide semiconductors we are developing are expected to contribute to saving energy and improving image quality in OLED displays compared to existing oxide semiconductors. We will continue to develop materials to suit the needs of society and customers based on our world-class R&D capabilities.
Promoting Business Structure Reforms and Establishing Foundations for GrowthThe advanced materials & performance chemicals business develops and sells the engineering plastics we are developing to strengthen specific functions and meet various needs, solvents used in paints and other products, adhesive base materials used in disposable diapers and other products, photoreceptors for copiers, and more. Furthermore, we produce products for a wide range of applications, including automotive parts, consumer electronics and optics. In recent years, we have been promoting business structure reforms to concentrate our management resources on high value-added products and growth markets. Although we withdrew from the L-MODU and Bisphenol A businesses, we have begun operation of a second SPS plant in Malaysia and set up an efficient global production system for the product. Furthermore, in terms of sales, we are also establishing the foundations for growth, such as by restructuring our overseas bases, to improve our ability to support overseas growth markets.
Proprietary Engineering Plastic Materials and Diverse Functional ProductsOur engineering plastics have various properties. In addition to everyday necessities, we also provide solutions in the electrification, motorization and carbon neutrality fields. For instance, syndiotactic polystyrene resin (SPS resin; product name: XARECTM), which we were the first in the world to successfully synthesize, exhibits heat resistance and chemical resistance due to the crystallization of polystyrene in addition to having the lightweight, electrical and hydrolysis resistance properties possessed by conventional polystyrene. Taking advantage of these properties, SPS resin is being adopted in home appliances, tableware and other everyday items. SPS implementations are also widespread in the automotive parts field that is becoming increasingly electrified and next-generation high-speed communications. We have also succeeded in converting it into fibers. Those fibers are being commercialized
mainly in new clothing products. In addition, SPS is attracting attention for its low-carbon properties that are expected to reduce CO2 by 40% or less through a reduction of the amount used and shortening of the production process compared to general engineering plastics. We will continue to introduce high value-added products in a timely manner to meet the needs of our customers. At the same time, we will also take on the chal-
lenge of developing new markets and new applications.
Spun SPS fiber
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 24
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Functional Materials Segment
Bitumen ■ Pesticides and Functional Feed
Comprehensive Asphalt Manufacturer That Provides a Stable SupplyWe make use of asphalt, the heaviest component obtained in the crude oil refining process, to engage in the bitumen business. It is said that 30% of the asphalt distributed in Japan is dependent on imports. However, we provide a stable supply through an integrated production and sales system - from design and development to manufacture and sales - utilizing the high-quality asphalt we manufacture at our group refineries. Furthermore, we are the only comprehensive asphalt manufacturer in Japan that provides asphalt products for various applications, including those for general roads as well as for construction and industrial products. In addition, we have begun a sales business for polymer modified asphalt (PMA) with the Blackhem Group that manufactures and sells asphalt in Malaysia. This business will meet the growing demand in Malaysia for PMA that can withstand more heavy-duty usage and higher traffic volume.
Technological Innovation in AsphaltWe released MinafortisCX in FY2024. This is a highly water-resistant asphalt that serves as a product for airport runways and taxiways. When water seeps into the aggregate (crushed stone) that makes up the asphalt pavement, it can cause the asphalt to separate from the aggregate. The result of that is damage to the pavement. Accordingly, we have developed a new proprietary technology that gives asphalt the property of forming a chemically strong covalent bond with the aggregate surface. This prevents separation from the pavement even when water seeps into the aggregate. This technology improves pavement strength by providing high water resistance and contributes to reducing the number of times construction work has to be carried by extending the life of the pavement. We will continue to bring about reform in the social infrastructure of roads with advanced technologies and supply chains to lead the way in improving safety and peace of mind and realizing carbon neutrality.
M&As to Strengthen the Pesticide BusinessOur pesticide business dates back to the research we began conducting on microbial cultures in the 1960s. We then worked on commercializing biological pesticides and other products that used microbes in the 2000s. After that, we acquired AGRO-KANESHO CO., LTD. (AK), a pesticide manufacturer listed on the Standard segment of the Tokyo Stock Exchange, through a tender offer and turned it into a wholly-owned subsidiary in February 2025 to further expand this business. AK's main products are soil disinfectants and pest control agents. Meanwhile, SDS Biotech K.K. (SDS), which forms the core of our group's agribusiness, has strengths in disease control agents and rice herbicides. Synergies between these two companies will lead to an improvement in corporate value under Idemitsu Agrilife Holdings Co., Ltd. (Agrilife HD) going forward.
Research and Development-based Agrochemical Ingredients ManufacturerAgriLife HD will aim to propose the best mix of environmentally-friendly chemical and biological pesticides as a company involved in the agriculture and livestock industries. It will achieve this by ensuring AK and SDS mutually use their active ingredients and R&D capabilities to lead to an acceleration in the pace of the development of new agents and mixtures, an expansion in the product lineup, and other effects. In the agricultural field, the company's flagship DACONIL fungicide product has a track record of sales over many years in the Asia-Pacific market. It has strong brand power. In the livestock field, the company's RUMINUP functional feed product, which contains cashew nut shell liquid, was designated as a feed additive that reduces the methane gas found in cow burps by the Ministry of Agriculture, Forestry and Fisheries in May 2025. AgriLife HD will continue to grow as a bio-life solutions proposal-based company to contribute to the safety, security and stable supply of food that is essential for the human race.
Strengths of both companies and expected effects
Herbicides (SDS products)
Insecticides
Chemical pesticides
Biological pesticides
Insecticides Fungicides
(AGRO-KANESHO products)
Best mix of chemical and biological pesticides
Soil disinfectants
Idemitsu's proprietary technology
Conventional technology: anchor effect, intermolecular forces and hydrogen bonds
Aggregate
Water
MinafortisCX: forming covalent bonds
Aggregate
Water
Covalent bond Covalent bond Covalent bond Covalent bond
When water penetrates, the aggregate-water bond becomes stronger, and the aggregate-asphalt bond peels off.
Forming covalent bonds with the
Components compatible with asphalt
Components compatible aggregate surface to suppress
with asphalt
Conventional asphalt
MinafortisCX
the separation of the aggregate and asphalt caused by water
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 25
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Functional Materials Segment
Lithium-ion Battery Materials
The all-solid-state batteries are expected to contribute primarily to extending the driving range of electric vehicles, shortening charging times and extending the life of batteries. We began researching solid electrolytes, a key material to realize all-solid-state batteries, in 2001. The impetus for that was the establishment of mass production technology for lithium sulfide, an intermediate raw material, in the 1990s. Sulfur components, one of the raw materials of lithium sulfide, are by-products obtained from petroleum refining. We have many years of achievements and experience in handling such sulfur components. Moreover, we will use our know-how in the handling of powders that we have cultivated in our petrochemicals business in the development of lithium sulfide and solid electrolytes. We have also integrated manufacturing technology from raw materials to finished products. Furthermore, our strength is that we can develop this manufacturing technology within a single organization in parallel with materials technologies and battery evaluation technologies.
Solid electrolytes are extremely small particles. That means it is not as easy to mass produce them as with liquids. Nevertheless, based on the technologies we have built up in many years of research and development and existing businesses, we will aim to establish mass production technology by gradually scaling up operations with two small pilot facilities currently in operation and a large pilot facility that we plan to construct in the future.
Focusing on Establishing Mass Production Technology and Building a Value ChainWe carried out the following from 2024 to 2025 to promote the mass production of solid electrolytes in the future.
Began the basic design of the large pilot facility (October 2024)
Decided to construct a large-scale production facility for lithium sulfide*1 (February 2025)
Completed the work to increase the capacity of the small pilot facilities at the Plant 1*2 (April 2025)
*1. This is an intermediate raw material for solid electrolytes.
*2. This plant has been in operation since 2021.
We expanded our solid electrolyte sample production capacity from several tons to ten or more tons per year by expanding the capacity of Plant 1. We will make the final decision on investment by the end of this fiscal year for the next stage that is the large pilot facility. We plan to complete the facility in 2027. We will aim to commercialize electric vehicles equipped with all-solid-state batteries in 2027 to 2028 in the collaboration with Toyota Motor Corporation as we announced in 2023. The solid electrolytes produced in the large pilot facility are planned to be used in the all-solid-state batteries being developed by Toyota Motor Corporation.
Li2S large-scale facility
Large pilot facility
Mining interests
Lithium resources
Lithium sulfide
Solid electrolytes
All-solid-state batteries
Refineries Sulfur components
Key technologies
Handling know-how
Ultra-fine particle handling technologies and high-purity manufacturing technologies
Recycling
Reuse
Products
Intermediate raw materials
Raw materials
Our strengths / value chain
Furthermore, we put our efforts into building a value chain focused on solid electrolytes. In addition to investing in lithium mine development, we also explore reuse and recycling technologies focused on increasing the life of all-solid-state batteries. We develop sulfur-based cathode materials as next-generation battery materials free of rare metals. We will aim to contribute to the social implementation of all-solid-state batteries by promoting these initiatives.
Small pilot facilities at Plant 1 (after the increase in capacity)
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 26
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Power and Renewable Energy Segment
General Manager of Power & Renewables Business Department
Hiroshi Yoshida
Main Businesses
Retail sale of power all over Japan
Development and operation of thermal and renewable energy power sources in Japan and overseas
Provision of solutions for the solar power generation business (Solar Frontier)
to being a system integrator that provides solutions for the design, construction, maintenance and solar panel recycling. We have established Solar Frontier Engineering K.K as a subsidiary responsible for the EPC (Engineering, Procurement, and Construction) business. We are strengthening our business transformation by using the expertise in the solar business and
Establishing Solid Business Foundations That Produce Group SynergiesIn the Power and Renewable Energy Segment, we steadily operate works while aiming to create group synergies, capture business opportunities, and improve and stabilize capital efficiency.
There are factors that will cause a decrease in power demand in Japan such as the decline in the population. Nevertheless, additional factors including the expansion of data centers and semiconductor plants mean that demand is expected to grow in the medium to long term as the economy expands. On the other hand, we see the risk of fluctuations in wholesale power prices as remaining unavoidable. That is due to factors such as rising resource prices as a result of geopolitical risks and the spread of decarbonized power sources with
advantage of both of those strengths. In particular, by expanding the idemitsu Denki power retail brand for general households, we will aim to strengthen our customer base as a familiar and comprehensive energy company and establish the business foundations that contribute to company-wide development.
Outlook for the Solar Business and Overseas BusinessWe are reviewing strategies for the solar business and overseas business, and working on restructuring the organizational framework for these operations. Solar Frontier K.K. discontinued production of solar panels in 2022. It has now transitioned
connections to local communities we have built up to now. Overseas, we own and operate gas-fired and solar power plants in North America and Southeast Asia. We will rebuild our business strategy to create group synergies and capture business opportunities while realizing stable capital efficiency.
South Field Energy Natural Gas-Fired
Power Plant Moji Solar Power Plant
unstable output. In this business environment, we are focusing on supply and sales to stabilize profitability within its own power sources as a foundation, by reducing market risks through flexible cooperation across our entire supply chain.
One of our strengths lies in our power generation business that has competitive thermal power sources and an extensive range of renewable energy power sources including biomass, wind and solar power. Another of our strengths is our sales business that has a sales network including dealers that have built their business with deep roots in the local community. We strive to deliver various values to customers including power price stability and renewable energy usage options, by taking
Sales Planning Section,
Power & Renewables Business Department
S. Hata (left) E. Fujii (center)
S. Kuroda (right)
Provision of New Value to Customers and the Global Environment through
idemitsu Denki
idemitsu Denki offers electricity plans for all-electric houses in addition to general houses with gas appliances. Our unique features include a special discount for car users that allows them to choose between a two-yen discount on gasoline or a discount on their electricity bills for electric vehicles and a program that allows customers to earn points by conserving electricity or charging their electric vehicles. We also offer an option to choose renewable energy power. Furthermore, we have a service* in which we purchase the surplus solar power generated on rooftops. We aim to achieve both environmental-friendliness and economic efficiency by combining diverse power sources in a well-balanced manner. At the same time, we maximize the synergies in our Group and help car users choose a suitable electricity plan, and contribute to the use and spread of renewable energy.
* Applies to solar power generation for which the feed-in tariff system has ended
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Human Capital / Human Capital Strategy
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 27
Message from the CFO ■ Initiatives for Achieving Carbon Neutrality by 2050 ■ Taking on the Future in the Advanced Materials Domain / Restructuring R&D to Accelerate Innovation ■ FY2024 Review of Operations
Petroleum Segment ■ Basic Chemicals Segment ■ Functional Materials Segment ■ Power and Renewable Energy Segment ■ Resources Segment
Resources Segment
Expanding Business Domains by Using Our Australian Business FoundationsMain Businesses
Exploration, development and production of petroleum and natural gas
Operation of geothermal power plants, and supply of electric power and steam
Production, procurement and sale of coal
Senior Executive Officer
General Manager of Coal and Energy Solution Department
Yuzo Yoshida
Contributing to Stable Supply of Energy to Customers and Shift to Carbon NeutralityWe are engaging in business in the Resources Segment under the mission of contributing to stable supply of energy and shift to carbon neutrality. In the petroleum, gas and geothermal development business, we continue to safely and stably operate the Sao Vang and Dai Nguyet gas fields in Vietnam and a geothermal power plant at the Takigami Complex in Oita Prefecture (steam supply to the Takigami Power Plant of Kyuden Mirai Energy Company, Incorporated and binary power generation). We will promote the exploration and development of natural gas fields mainly in Southeast Asia, including entering the exploration and development business in Malaysia, as a new initiative in the oil and gas field development business. Through these efforts, we will contribute to reducing the environmental impact of the power source mix in the region. In the geothermal business, we will pro-
mote the development of geothermal energy, a domestically Japanese produced low-carbon resource, by building the Katatsumuri
and exploration expeditions in Japan. In the coal business, we hold a 90% stake in Boggabri Mine in Australia and keep its stable operation as the operator. We are going to supply this high-quality coal mainly to Japanese customers. Moreover, we are working to expand the use of Idemitsu Green Energy Pellets biomass fuel to contribute to the shift to carbon neutrality. Made by heating dried woody raw materials at high temperatures, Idemitsu Green Energy Pellets have a high calorific value and outstanding grind-ability, which can be co-fired with coal in existing customer's boiler. Starting from our plant in Vietnam with an annual production capacity is 120,000 tons, we are aiming to expand our production and procurement bases to various regions and raw materials in the Pacific Rim. Furthermore, leveraging our expertise in evaluating the quality and combustion characteristics of coal and biomass fuels, we have developed a new solution called "idemitsu-R40"*1. This solution enables coal-fired boilers to reliably and efficiently increase the pro-
portion of carbon-neutral (CN) fuels-such as biomass-in the fuel mix. The combination of Idemitsu Green Energy Pellets and idemitsu-R40 will support the transition to a carbon neutral society.
*1. idemitsu-R40: A new solution package
By taking advantage of our coal business foundations in Australia, we are currently participating in four projects including vanadium, lithium and graphite. We are proceeding with exploration and feasibility studies on those projects. The aforementioned critical minerals are important materials for the storage batteries that are necessary for the spread of renewable energy. We decided to make an additional investment in Vecco and to turn it into a majority-owned subsidiary in December 2024. Vecco is a company in Australia that is developing vanadium mines and manufacturing vanadium electrolytes for storage batteries. Using vanadium electrolytes, vanadium flow batteries have a long life with almost no deterioration of the electrodes or electrolytes. Also, they are highly safe because of the non-flammability. Therefore, they are suitable for the storage batteries in power grids. In addition to it, we also expect an improvement in convenience by combining them with solar power and other renewable energy power sources that have unstable output. Our company and Vecco will build a highly competitive supply chain to mine and refine vanadium ore and manufacture electrolytes in Australia. We are also planning
global expansion in which we manufacture electrolytes in the Unit ed States and Europe
Yama Power Plant
designed to support the transition to carbon
neutral for coal-fired boilers. Launched in May
Idemitsu Green Energy Pellets
using vanadium
Geothermal business in Kokonoe Town, Oita Prefecture
in Akita Prefecture and conducting multiple surveys
2025. It consists of two key components: consulting services to increase the co-firing ratio of carbon neutral fuel and a support system that facilitates the shift to carbon neutral fuel.
refined in Australia as the raw material in the future.
Vanadium electrolyte manufacturing (Vecco's production facility)
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 28
Human Capital / Human Capital Strategy
Message from the Officer in Charge of Human Resources ■ Key Issues in Human Capital Strategy for FY2025 ■ Implementation of the Human Capital Strategy
Growing both our company and the people working in it under our New Action Guideline, aimed at embodying our concept of being "Truly inspired"
Representative Director and Executive Vice President
Masahiko Sawa
The Three Pillars of Human Capital Strategy
Embodying Management Philosophy / Vision
Expanding DE&I
Bringing out the full potential of each individual
Our Fundamental Policy on Human Capital Management
Since our Company was founded, we have placed the highest importance on the belief that "people are capital" and the concept of "People-Centered Management." In September 1945, shortly after the end of World War II, our founder, Sazo Idemitsu, declared that he would protect his employees, rather than laying them off. He said, "We have lost our business, and we still have debts, but Idemitsu Kosan's human resources include 800 people working overseas. They are the only capital we have, and it is they who will build our future businesses. At Idemitsu Kosan, we respect human beings, so we must not rush to dismiss our workers amid the postwar chaos." His belief that any difficulty can be overcome as long as employees grow well has been passed down to this day as a fundamental policy, which includes "never laying off employees for company reasons" and "the purpose of our company is to develop people who serve society and are respected, and business is the means to that end."
Business Strategy Issues We Face, and Human Capital StrategySince being designated as a wholesaler in 1949, our mission has been to support Japan's energy security, and we have developed our business activities by building a network centered on the fuel oil business both within Japan and abroad. However, the business model of petroleum refining and sales that our predecessors built after World War II is entering a period of major transformation as we move toward achieving carbon neutrality (CN) by 2050. Our current Medium-term Management Plan positions investment in business structure reform and human capital as the wheels on which our vehicle travels, and we aim to create an environment where all employees can maximize their abilities and individuality, with their growth fueling the growth of the company as a whole. To that end, we are promoting a human capital strategy comprising three pillars:
(1) Embodying Management Philosophy / Vision; (2) Expanding DE&I; and (3) Bringing out the full potential of each individual. I would like to introduce some examples of our main initiatives here.
Embodying Management Philosophy / Vision
We will use events such as company-wide town hall meetings, which provide a forum for direct dialogue between man-agement-including the president-and employees, to communicate the state of the business, our Management Philosophy, and more, and foster understanding among employees. The Idemitsu Kosan Human Gallery, a venue where people from both inside and outside the Company can learn about our philosophy and history, was also reopened in October 2024 after a major update. Furthermore, we established the New Action Guideline for embodying our Management Philosophy of "Truly inspired," which will be discussed later.
Expanding DE&I
Our Company practices "People-Centered Management," and it is therefore essential that we create an environment where diverse employees can work and grow together in a vibrant manner. We are focusing our efforts on creating a culture where employees from minority groups, including women, LGBTQ+ individuals, foreign nationals, people with disabilities, and more, can thrive. This includes our cross-mentoring program, which involves pairing employees with mentors from different businesses, as well as initiatives to promote the appointment of female employees in manufacturing settings, with the goal of increasing leadership opportunities for female managers. These efforts have been well-received, as
CONTENTS
Value Creation Story
Message from Top Management
Business Structure Reforms
Evolution of the Business Platform / Innovation Management
Sustainability
Corporate Governance
Data Section
Idemitsu Integrated Report 2025 29
Human Capital / Human Capital Strategy
Message from the Officer in Charge of Human Resources ■ Key Issues in Human Capital Strategy for FY2025 ■ Implementation of the Human Capital Strategy
Message from the Officer in Charge of Human Resources
evidenced by our Company receiving the Nadeshiko Brand award for the third consecutive year in 2024.
Bringing out the full potential of each individual
In FY2024, we established the Idemitsu Employee Association with the goal of providing a forum where all employees, including managers, can participate in discussions to create a better company and organizational culture. We also established a Career Design Department to support the autonomous career development of our employees, and have started rolling out voluntary training opportunities and tools for employees to consider their lifelong and life-wide career development.
The Idemitsu Engagement Index
The Idemitsu Engagement Index (Idemitsu EI) is an important goal indicator for achieving sustainable growth through structural reforms of our existing businesses. This proprietary index has been developed by our Company to measure employee commitment to the organization, identify issues, and ensure that thorough measures are taken (see p. 32).
Setting the New Action Guideline and Promoting UnderstandingI would like to provide some additional information about the "New Action Guideline" we established in 2025. Our HR System and Action Guideline were formulated with the merger of Idemitsu Kosan and Showa Shell Sekiyu in 2019. Our policy was to launch an entirely new concept, rather than leaning toward the system of either of the original companies. At the time, the new, integrated company had no Management Philosophy to indicate the company's purpose of existence, value system, and the like, and serve as a foundation for its HR system. Subsequently, in April 2021, we formalized our Management Philosophy of "Truly inspired."
However, many employees pointed out that the terminology used in the HR system and Action Guideline was too general, and failed to reflect both our company's values and the type of people we seek to hire. We therefore redefined the Action Guideline as the New Action Guideline to better reflect our company's unique characteristics. Our Management Philosophy of "Truly inspired" is based on the belief that "the purpose of our company is to develop people who serve society and are respected, and business is the means to that end." In redefining our New Action Guideline, we articulated what we expect from our employees based on each part of the Management Philosophy, summarized these as seven elements, and organized those elements into three Basic Attitudes, namely a "complete sense of ownership," a "constant desire for growth," and "deep regard for sincerity and mutual trust," and four Competencies, or the ability to "take on new challenges boldly," "think thoroughly and make confident decisions," "overcome differences," and "empower people."
We place particular importance on the "complete sense of ownership" element of the New Action Guideline. At Idemitsu, we define a "complete sense of ownership" as "Willingness to take ownership of matters in which one is involved, as well as the
Action Guideline / Evaluation Items Definitions
Basic attitudes | Complete sense of ownership | Willingness to take ownership of matters in which one is involved, as well as the responsibility for completing them |
Constant desire for growth | Willingness to self-reflect every day, always learning and growing | |
Deep regard for sincerity and mutual trust | Willingness to empathize with all involved, both inside and outside the Company, offering respect and supporting their potential | |
Competencies | Take on new challenges boldly | The ability to set high goals and take on challenges, unconstrained by precedent and undeterred by failure |
Think thoroughly and make confident decisions | The ability to think from a multifaceted perspective, then make timely decisions with confidence and conviction | |
Overcome differences | The ability to listen and understand another person's position, then find a workable solution that allows you to move forward | |
Empower people | The ability to recognize the potential of all people, then leverage their capabilities to the fullest |
New Action Guideline
responsibility for completing them." Generally speaking, a "sense of ownership" refers to an attitude of taking the initiative to actively engage in work and other matters that one is involved in. However, our "complete sense of ownership" takes this concept a step further; it goes beyond a simple sense of responsibility, and encompasses both a deep passion for the success of individual tasks and overall projects, and a strong awareness that one's actions affect outcomes directly. This includes, for example, behavior such as encouraging other members even outside the scope of one's own duties, quietly preventing errors and omissions, and the like to help the organization achieve its overall goals. Starting with a company-wide briefing in February 2025, we began rolling out measures to promote the understanding and acceptance of the New Action Guideline and its evaluation items throughout the company, including small-scale town hall meetings and roundtable discussions in each department. Each employee taking ownership of the New Action Guideline and thoroughly understanding each item will enable us to embody our Management Philosophy of "Truly inspired," and through such efforts, we aim to achieve sustainable growth for our
employees and, by extension, for the Company as a whole.
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Idemitsu Kosan Co. Ltd. published this content on August 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 29, 2025 at 06:09 UTC.
