Annual Report 2013

What are your profi t and other fi nancial goals for fi scal 2017, the fi nal year of the plan?040206080100120FY2010 FY2012 FY2017 Target(Billions of yen)73.833.1112.0Historical Changes in Consolidated Ordinary Income(excluding inventory valuation impact)Item FY2012 FY2017 Target ChangeOrdinary income* (billion yen) 33.1 112.0 +78.9Net income (billion yen) -85.9 45.0 +130.9Net assets (billion yen) 256.9 415.5 +158.6Net worth ratio (%) 13.2 21.5 +8.3 pts.Net debt/equity ratio (times) 3.1 1.6 +1.5 pts.Profi t & Other Financial Goals*excluding inventory valuation impactItem AssumptionDubai crude oil price 100 USD/bblJPY/USD exchange rate 90 yen/USDDemand in Japan (Annualized) -2.1%AssumptionsQ.04Regaining profi tability is our foremost priority through to fi scal 2017. Our goal is to lift ordinary income (excludinginventory valuation impact) by ?78.9 billion from ?33.1 billion in fi scal 2012 to ?112 billion over the next fi ve years.Breaking this ordinary income* target down by business, we expect oil exploration and production, oil refi ning andmarketing, petrochemicals, and renewable energy activities to contribute 69%, 16%, 9%, and 6%, respectively.Moreover, we plan to raise our net worth ratio by 8.3 percentage points to 21.5% and our net debt-to-equity ratioby 1.5 points to 1.6 times between fi scal 2012 and fi scal 2017 by increasing profi tability and enhancing ourfi nancial position. Building on these fi gures, we will focus on curtailing interest-bearing debt while taking intoconsideration current conditions. We will also consider measures aimed at streamlining our balance sheet includingthe disposal of select businesses.*This and similar subsequent references to ordinary income all exclude inventory valuation impact.A.04FY2017 Ordinary Income Target by Segment (Consolidated)(excluding inventory valuation impact)69%6%16%9%Ordinary income:112.0 billion yenOil E&P 77.5 billion yenPetroleum 18.0 billion yenPetrochemical 10.0 billion yenRenewable energy 6.5 billion yen