Summary of Consolidated Full Year Results for 2011

1.Business Results
(1) Analysis of business results
A. Business results for the current period
[Analysis of consolidated business results]
For the current fiscal year, the Japanese economy suffered from the continued uncertain outlook as it experienced a rapid
downturn due to effects of the Great East Japan Earthquake and, despite production and consumer spending recovery at the
midpoint of the year, saw slowing production and export growth in the second half mainly due to the overseas slowdown,
the higher yen, and floods in Thailand.
Dubai crude oil prices started at the 91-dollar per barrel level for the current fiscal year. It rose to around 120 dollars at end
of April before sharply declining to the 101-dollar level in May, however it returned to the 110-dollar level in July.
Subsequently, after temporally falling below 100 dollars in October, it turned to an upward trend again and closed at the
105-dollar-per-barrel level for the current fiscal year.
The exchange rate for Japanese yen to the U.S. dollar started at the 81-yen level for the current fiscal year and rapidly rose to
the 76-yen level immediately after the Great East Japan Earthquake. However, it sharply fell into the 85-yen level in April
through coordinated G7 intervention, etc. Then, the yen remained high due to weaker business sentiment in the U.S. and a
resumption of the European debt problem, and the rate hit a record high of 75.32 yen at the end of October. However, it
slightly declined through interventions of the government and the BOJ closing at the higher part of the 77-yen level for the
current fiscal year.
Under such a business environment, our group recorded consolidated sales of 2,771.4 billion yen, up 18.1% from the
previous year, mainly due to the effects of the higher prices of oil products. Looking at profit and loss, the group posted
consolidated operating income of 60.2 billion yen (an increase of 23.5 billion yen over the previous year) and consolidated
ordinary profit of 61.8 billion (an increase of 19.6 billion yen over the previous year). Contributors to this include increased
demand for heating fuels resulting from a cold wave at beginning of the year and a recovery in the oil product markets. The
elimination of the effects of inventory valuation, etc., would result in consolidated ordinary profit standing at 30.0 billion
yen (a decrease of 4.2 million yen over the previous year).
As for extraordinary profit and loss, the group recorded net loss of 5.0 billion yen partially because an impairment loss was
recognized for some production facilities of the solar cell business though a gain on disposal of real estate for property
letting business was posted. Consolidated net income before taxes stood at 56.7 billion yen (an increase of 20.4 billion yen
over the previous year). As a result, consolidated net income after income taxes, income tax adjustments, and minority
interest increased to 23.1 billion yen, an increase of 7.1 billion yen over the previous year.
The business results by segment are as follows.
(Billion Yen)
Petroleum Energy
Solution
Others * Consolidated
Sales 2,695.2 65.7 10.3 2,771.4
Oper ting income/(loss) 87.2 (28.8) 1.9 60.2
*Operating income in “Others” includes the other segment and internal trade.
Income by business segments reported are calculated based on operating income.
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