Annual Report 2013

From a profi t perspective, we project a substantial jump in earnings owing to the signifi cant decline inalternative supply costs due to the reopening of the Chiba Refi nery and the resumption of export activity.As a result, in FY2013, we forecast segment net sales of ?3,460.0 billion, up ?343.8 billion, and ordinaryincome of ?3.0 billion, a positive turnaround of ?26.7 billion.MAJOR INITIATIVESStrengthen Marketing CapabilitiesAmid the continued decline in demand in Japan for such automobile fuels as gasoline and diesel fuel, CosmoOil has placed considerable weight on strengthening initiatives at service stations in an effort to build a stabledomestic sales channel.We have commenced an electronic cash-based settlement service focusing on our Cosmo the Card creditcard while aggressively promoting a variety of campaigns through our service station network. As a result, thenumber of active card members has increased 160,000 for a total membership of 3,970,000.In our Cosmo B-cle Lease business, we have introduced a fl at-rate system encompassing maintenance, tax,and other expenses. At the same time, we have taken steps to complement our package of services withdiscount privileges. These initiatives have been well received by the market with the cumulative total numberof automobile leases breaking through the 5,000 level in March 2013.Moving forward, Sojitz Energy Corporation, which directly operates service stations and engages in thewholesale of petroleum products, was included in the Company’s scope of consolidation as a subsidiary onJanuary 31, 2013. The name of the company was then changed to Sogo Energy Corporation. Looking ahead,we will work to maximize the synergy benefi ts between the wide-ranging procurement sources, customerbase, human resources, and know-how acquired from Sojitz Energy and our petroleum product stable supplycapabilities, logistics network, customer base, high brand image, and Cosmo the Card credit card membership.Building on these measures, we will make every effort to capture customers and to further increase servicestation profi tability.01,0002,0003,0004,0005,000‘08 ‘09 ‘10 ‘11 ‘12(Thousands)(FY)Trends in the Number of Active Cosmo the Card (Credit Cards)