15
Fact Book 2003
Fact Book 2003
1
Financial Highlight (Consolidated) (Unit: Millions of Yen)
2001 2002 2003
Sales revenue 2,062,274 1,928,868 2,135,289
Operating income 53,018 4,840 33,992
Operating income excluding inventory valuation effects 56,018 8,604 29,716
Net income 20,559 8,474 27,712
Net cash provided by operating activities 75,753 25,596 50,115
Capital expenditure 14,283 20,483 20,738
Dividends paid 21,327 21,452 21,307
Cash and cash equivalents at the end of
the period 4,158 1,670 658
Total assets at year end 1,000,349 964,494 932,586
Shareholders' equity 271,747 216,638 225,882
Number of Employees (Actual) 2001 2002 2003
Consolidated 2,956 2,851 2,644
Non-consolidated 1,922 1,885 1,792
Fact Book 2003Financial Highlight / Number of Employees
2
2001 2002 2003
Liquidity Ratios
Current assets to current liabilities (times) 1.1 1.0 1.0
Leverage: Coverage Ratios
Shareholders' equity ratio 1 (%) 27.2% 22.5% 24.2%
Long-term debt to total capitalization 2 (%) 13.8% 7.4% 6.0%
Net-debt to equity 3 (%) 37.2% 60.2% 42.6%
Times interest earned 4 (times) 42.6 4.8 36.4
Fixed charge coverage 5 (times) 30.2 4.3 31.5
Profitability Ratios
Net income to average total assets (%) 2.1% 0.9% 2.9%
Net income to average shareholder's equity (%) 6.8% 3.5% 12.5%
Cash return on average total assets 6 (%) 7.6% 2.6% 5.3%
Return on average capital employed 7 (%) 5.4% 2.5% 8.4%
Dividend and Market Ratios
Net income per common shares (Yen/share) 30.9 13.9 46.8
Price to earnings8 (times) 27.3 56.0 18.9
Dividend per share (Yen/share) 34.0 36.0 36.0
Dividend payout 9 109.9% 258.6% 76.9%
Dividend yield 10 4.0% 4.6% 4.1%
1: Shareholders' equity/Total assets 2: Long-term debt/(Long-term debt+shareholders’ equity) 3: Net debt/Shareholders’ equity, Net debt=Interest bearing debt - (Cash+Loan receivables) 4: Operating income/Interest expense 5: (Operating income + Lease payments)/(Interest expense + Lease payments) 6: Cash flow from operating activities/Average total assets 7: Net income before interest and after tax/(Average shareholders’ equity+Average net debt) 8: Net income/Stock price at year end 9: Dividends per common share/Net income per common share 10: Dividends per common share/Market price of common share at year end
Fact Book 2003Financial Ratio (Consolidated)
3
Stock Price (Yen/Share)
2001 2002 2003
High 1,019 1,077 929
Low 520 703 700
Year end 845 780 887
Number of Shares and Market Capitalization at Year End
2001 2002 2003
Number of shares authorized 932,280,000 890,081,000 890,081,000
Number of shares outstanding 634,742,018 592,543,018 592,543,018
Market capitalization1 (Million yen) 536,357 462,184 525,5861: Number of shares outstanding*market price of common share at year end
Major Shareholders as of December 31, 2003
Number of Shares (thousands)
Percentage of Total Shares
ExxonMobil Y.K. 296,394 50.02
Japan Trustee Services Bank, Ltd. (Trust Account) 19,259 3.25
The Master Trust Bank of Japan, Ltd. (Trust Account) 18,422 3.11
Sompo Japan Insurance Inc. 9,937 1.68
The Tokio Marine & Fire Insurance Co., Ltd. 9,156 1.55
Nippon Life Insurance Company 6,852 1.16
The Chase Manhattan Bank NA, London 6,676 1.13
Nomura Securities Co., Ltd. 5,406 0.91
Aioi Insurance Co., Ltd. 4,468 0.75
Deutsche Securities Limited, Tokyo Branch 4,170 0.70
Fact Book 2003Stock Information
4
Actual Production Volume by Business Segment
Business Segment 2001 2002 2003
Oil products1 (Unit: KKL) 37,034 35,552 36,015
Chemical products2 (Unit: KTon) 3,080 2,447 2,709
(Note) The volume shown above is the total volume produced by the consolidated companies
Actual Sales Amounts by Business Segment (Unit: Millions of Yen)
Business Segment 2001 2002 2003
Oil products1 1,922,343 1,799,685 1,975,199
Chemical products2 136,482 125,457 158,101
Others3 3,448 3,725 1,987
Total 2,062,274 1,928,868 2,135,289
Operating P/(L) by Business Segment (Unit: Millions of Yen)
Business Segment 2001 2002 2003
Oil products1 47,428 -2,274 13,579
Chemical products 2 4,432 6,440 20,149
Others 3 729 359 -4
Elimination 428 315 267
Total 53,018 4,840 33,992 1: Gasoline, naphtha, kerosene, diesel fuel, LPG,etc. 2: Ethylene, propylene, benzene, toluene, paraxylene, etc. 3: Real estate and lease, maintenance service, etc.
Fact Book 2003Segment Information
5
Refining Units Kawasaki Sakai Wakayama NSS1 Total
Site Area m2 2,049,964 770,000 2,478,000 807,000 6,104,964
Main Refining Units
Atmospheric distillation BPD 335,000 156,000 170,000 100,000 761,000
Vacuum distillation BPD 123,000 70,000 74,000 — 267,000
Fluid catalytic cracking BPD 92,000 42,000 39,000 — 173,000
Alkylation BPD 10,000 — 3,600 — 13,600
Reformer BPD 52,000 34,000 23,000 13,500 122,500
Hydrofiner BPD 256,000 163,200 120,000 44,000 583,200
Resid hydroconversion BPD 28,000 — — — 28,000
Storage
Crude oil tanks KKL 947 510 2,251 968 4,676
Product/Semi-product Tanks KKL 1,970 945 2,201 553 5,669
Chemical Units Kawasaki Sakai Wakayama NSS1 Total
Ethylene Kton/Year 478 — — — 478
Propylene Kton/Year 495 88 — — 583
Butadiene Kton/Year 105 — — — 105
Butene-1 Kton/Year 10 — — — 10
Isobutylene Kton/Year 90.6 — — — 90.6
Methyl ethyl ketone Kton/Year 85 — — — 85
Benzene Kton/Year 80 52 148 — 280
Toluene Kton/Year — 194 138 — 332
Xylene Kton/Year — 207 540 — 747
Paraxylene Kton/Year — 187 266 — 453
1: Nansei Sekiyu K.K.
(As of April 1, 2004)
Fact Book 2003Production Capacity
6
Breakdown of Oil Product Ratio in 2003 Kawasaki Sakai Wakayama TonenGeneral
Total NSS1 Total
Gasoline/Naphtha 42.6% 41.1% 37.1% 40.8% 16.3% 38.6%
Jet/Kero/Diesel/Fuel A 48.6% 40.2% 43.5% 45.3% 34.8% 44.3%
Fuel C 4.1% 11.8% 10.0% 7.5% 44.6% 10.8%
Other 4.7% 6.9% 9.4% 6.5% 4.3% 6.3%
1: Nansei Sekiyu K.K. 2: Source: Petroleum Association of Japan
Rates of Conversion to Gasoline/Distillates (FCC+RFCC+H-oil) / APS (As of April 1, 2004)
Units Kawasaki Sakai Wakayama TonenGeneral Total 3
% 36% 27% 23% 30%
FCC Fluid Catalytic Cracking Unit RFCC Residual Fluid Catalytic Cracking Unit H-Oil Resid Hydroconversion Unit APS Atmospheric Distillation Unit
3: Excluding Nansei Sekiyu K.K.
Fact Book 2003Production Details
7
2001 2002 2003 Crude Run (KKL/period)
Kawasaki 16,741 15,291 16,351
Sakai 7,891 8,076 7,590
Wakayama 8,640 8,568 8,807
TonenGeneral (ex.NSS1) 33,273 31,935 32,747
NSS1 3,500 2,555 3,361
TonenGeneral+NSS1 36,773 34,491 36,108
Industry 2 238,341 231,305 238,974
Crude Run (BPD)
Kawasaki 288,503 263,514 281,779
Sakai 135,992 139,171 130,791
Wakayama 148,892 147,655 151,762
TonenGeneral (ex.NSS1) 573,386 550,340 564,332
NSS1 60,323 44,032 57,921
TonenGeneral+NSS1 633,710 594,372 622,253
Industry 2 4,107,303 3,986,050 4,118,218
Refinery Capacity3 (BPD)
Kawasaki 335,000 335,000 335,000
Sakai 156,000 156,000 156,000
Wakayama 166,000 166,952 170,000
TonenGeneral (ex.NSS1) 657,000 657,952 661,000
NSS1 100,000 100,000 100,000
TonenGeneral+NSS1 757,000 758,087 761,000
Industry 2 5,063,952 4,969,210 4,927,078
Utilization Ratio (%)
Kawasaki 86.1% 78.7% 84.1%
Sakai 87.2% 89.2% 83.8%
Wakayama 89.7% 88.4% 89.3%
TonenGeneral (ex.NSS1) 87.3% 83.6% 85.4%
NSS1 60.3% 44.0% 57.9%
TonenGeneral+NSS1 83.7% 78.4% 81.8%
Industry2 81.1% 80.2% 83.6%
Fact Book 2003Crude Run and Utilization Ratio
1: Nansei Sekiyu K.K. 2: Petroleum Association of Japan 3: Refinery capacity is the calendar-day capability to process inputs to atmospheric distillation units.
8
Number of Synergy Cardholders (in thousand) 2001 2002 2003
— 370 570
Market Share 3 (Unit :%)
2001 2002 2003
Gasoline
General Brand 4.9 4.8 5.0
Memo Exxonmobil group total2 19.0 19.3 19.6
Diesel
General 2.3 2.6 2.7Memo
Exxonmobil group total2 14.7 14.3 14.5
Fact Book 2003Marketing Number of Service Stations 2001 2002 2003
General Brand 1,827 1,731 1,605
Branded (Motouri) 1 42,960 41,370 39,824
Memo Exxonmobil group total 2 6,889 6,678 6,360
Number of Self-Serve Service Stations 2001 2002 2003
General Brand 97 144 178
Branded (Motouri) 1 958 2,027 2,840Memo
Exxonmobil group total2 (including)
Express Doutor Speedpass
291
9329—
528
302 56 9
689
41078
212Number of speedpass holders (in thousand)
— — 140
1: Source, Nenryo-Yushi newspaper 2: General, Esso, and Mobil branded service stations 3: Source, Ministry of Economy, Trade, and Industry in Japan, Monthly of mineral resources and petroleum products
statistics, and Petroleum Association of Japan
9
(Unit : KKL)
Products 2001 2002 2003
Gasoline %
12,14726.3
13,247 28.8
13,78228.3
Naphtha %
4,4339.6
2,919 6.3
3,0356.2
Kerosene %
5,75612.4
5,860 12.7
5,83412.0
Diesel Fuel %
6,81014.7
6,623 14.4
6,31613.0
Fuel, Crude %
11,97825.9
10,997 23.9
11,97324.6
Lube Oil %
3670.8
333 0.7
3550.7
LPG %
3,7258.1
4,710 10.2
5,60411.5
Chemicals %
5651.2
956 2.1
1,1062.3
Other Products %
4641.0
373 0.8
6591.4
Total %
46,249100.0
46,020 100.0
48,667100.0
(Note) Figure in lower line in each column shows the percent of total sales.
Fact Book 2003Sales Volume (Non-consolidated)
10
(Unit: Million Yen)
2001 2002 2003
Assets 1,000,349 964,494 932,586
Current assets 630,213 627,862 610,649
Cash and cash equivalents 4,158 1,670 658
Notes and accounts receivable 430,642 424,045 418,655
Inventories 144,066 154,715 169,111
Deferred tax assets 5,889 4,735 6,964
Short-term loans receivable 27,590 29,700 4,893
Others 19,184 13,795 11,371
Bad debt allowance (1,317) (799) (1,006)
Fixed assets 370,136 336,631 321,936
Property, plant and equipment 281,368 266,951 257,651
Buildings, structures and tanks 84,202 73,362 72,118
Machinery and equipment 80,060 70,201 70,432
Land 107,405 105,686 103,435
Others 9,701 17,699 11,663
Intangible assets 6,286 6,487 6,764
Investments and other assets 82,481 63,192 57,521
Investment in securities 47,121 34,005 31,851
Long-term loans receivable 7,677 1,917 2,705
Deferred tax assets 10,504 10,063 4,736
Others 17,177 17,206 18,227
Total assets 1,000,349 964,494 932,586
(Note) Amounts are shown in truncated millions of Yen.
December 31, 2001 through 2003
Fact Book 2003Consolidated Balance Sheets
11
(Unit: Million Yen)
2001 2002 2003
Liabilities 727,085 746,884 705,788
Current liabilities 598,610 652,184 615,401
Trade accounts payable 209,292 215,489 213,943
Gasoline tax etc., payable 234,405 225,197 232,492
Short-term loans 92,198 136,311 90,194
Commercial paper 5,000 10,000 —
Deferred income tax liabilities — — 9
Guarantee deposits payable 12,374 11,772 11,697
Others 45,338 53,414 67,064
Long-term liabilities 128,475 94,699 90,386
Long-term debt 43,396 17,361 14,384
Deferred income tax liabilities 670 435 —
Reserve for accrued pension costs 49,891 50,021 53,295
Reserve for officers’ retirement allowance 1,004 550 382
Reserve for repairs 14,162 14,065 14,123
Reserve for offshore well abandonment 1,776 1,776 1,608
Consolidation adjustment account 2,100 954 —
Others 15,472 9,535 6,593
Minority interests in consolidated subsidiaries 1,517 971 915
Shareholders' equity 271,747 216,638 225,882
Common stock 35,123 35,123 35,123
Capital surplus 20,741 20,741 20,741
Retained earnings 213,007 159,727 166,131
Unrealized holding gains on securities 3,009 1,608 4,454
Foreign currency translation adjustments (36) (14) (10)
Treasury stock (98) (548) (558)
Total liabilities, minority interests and shareholders' equity 1,000,349 964,494 932,586
(Note) Amounts are shown in truncated millions of Yen.
December 31, 2001 through 2003
Fact Book 2003Consolidated Balance Sheets
12
Fact Book 2003Consolidated Income StatementsYears ended December 31, 2001 through 2003
(Unit: Millions of Yen)
2001 2002 2003 Sales revenue 2,062,274 1,928,868 2,135,289Cost of sales 1,952,129 1,866,573 2,050,573Selling, general and administrative expenses 57,125 57,454 50,723
Operating income 53,018 4,840 33,992Non-operating income
Interest income 329 484 409Dividends received 280 247 137Foreign exchange gain — 1,791 2,253Consolidation adjustment account — 1,166 954Equity in earnings of affiliates 295 803 1,597Others 679 635 532
Non-operating expenses Interest expenses 1,244 1,012 935Foreign exchange loss 1,059 — —Others 1,113 694 554
Ordinary income 51,187 8,261 38,386Extraordinary gain
Gain on sales of property, plant and equipment 3,081 10,323 9,366Gain on sales of investment securities 65 2,593 4,322Gain on sales of technical license — — 669Gain on reversal of reserve for offshore well abandonment — — 259
Gain on reversal of bad debt allowance 280 105 37Gain on business transfer of lubricants oil blending — 848 —Adjustment of assets to be transferred on merger 2,202 — —Others 1,009 31 69
Extraordinary Loss Loss on retirement allowance expense for transferred employment — — 3,699
Loss on sales and disposal of property, plant and equipment 1,550 2,934 3,383
Loss on sales of investment securities 11 885 139Evaluation loss on investment securities 103 840 119Loss on sales of subsidiary company stocks — — 115Additional allowance for early retirement 298 4,364 27LPG collection-related expense 253 768 —Lump-sum recognition of retroactive costs due to pension accounting 13,149 — —
Loss on withdrawal from business 3,020 — —Accrued loss on golf club member ship 1,109 — 6Others 159 147 90
Income before income taxes 38,169 12,224 45,529Income taxes
Current 11,900 2,888 17,073Deferred 5,519 686 778
Minority interests 190 174 (35)Net income 20,559 8,474 27,712(Note) Amounts are shown in truncated millions of Yen.
13
(Unit: Million Yen)
2001 2002 2003 I. Cash flows from operating activities
Net income before income taxes 38,169 12,224 45,529Depreciation and amortization 27,544 24,210 21,673Decrease (Increase) in trade accounts receivable (38,049) 6,596 5,212Decrease (Increase) in inventories 29,696 (10,648) (14,547)(Decrease) increase in trade accounts payable 33,320 6,196 (1,518)Others (3,027) (4,854) 4,384Sub-Total 87,654 33,724 60,735Interest and dividend income received 740 720 610Proceeds from business transfer of lubricants oil blending — 848 —Interest paid (1,288) (1,048) (992)Payments for additional allowance for early retirement (617) (1,611) (6,475)Payments for LPG collection-related expenses — (1,021) —Income taxes paid (10,735) (6,016) (3,761)
Net cash provided by operating activities 75,753 25,596 50,115II. Cash flows from investing activities
Payments for additions to property, plant and equipment (13,623) (19,199) (19,558)Proceeds from sales of property, plant and equipment 4,555 18,804 14,531Payments for additions to intangible assets (659) (1,284) (1,180)Proceeds from sales of investment in securities 17 9,137 10,949Decrease in short-term loans receivable, net 3,486 2,443 20,644Long-term loans (1,425) (487) (12)Collection of long-term loans receivable (2,519) 1,907 3,387Payments for aquisition of subsidiary stocks according to change in
scope of consolidation (22,600) — —
Proceeds from sales of subsidiary stocks according to change in scope of consolidation
1,118 — 59
Others 651 419 90Net cash provided by (used in) investing activities (25,958) 11,742 28,909
III. Cash Flows from Financing Activities Increase （decrease）in short-term borrowings, net 8,131 22,301 (22,678)Increase（decrease） in commercial paper, net 4,999 5,000 (10,000)Increase in long-term debt 22,600 — —Repayment of long-term debt (4,206) (4,224) (26,018)Payments for repurchase of treasury stock for retirement purpose
(59,999) (40,301) —
Payments for purchase of treasury stock — (450) (127)Proceeds from sales of treasury stock — — 116Cash dividends paid (21,327) (21,452) (21,307)Cash dividends paid to minority interests in consolidated subsidiaries
(254) (42) —
Payment to minority interests due to capital reduction — (657) (21)Net cash used in financing activities (50,057) (39,827) (80,036)
IV. Decrease in cash and cash equivalents (263) (2,487) (1,011)V. Cash and cash equivalents at the beginning of the period 4,402 4,158 1,670VI. Increase in cash and cash equivalents by newly
consolidated subsidiaries 19 — —
VII. Cash and cash equivalents at the end of the period 4,158 1,670 658(Note) Amounts are shown in truncated Million Yen.
Fact Book 2003Consolidated Statements of Cash Flows
Years ended December 31, 2001 through 2003
14
Company Name TonenGeneral Sekiyu K.K.
Securities Code 5012 (Tokyo Stock Exchange, First Section)
Established July 26, 1947
Paid-in Capital ¥35,123,100,900
Business Import of crude oil, petroleum products and liquefied petroleum gas (LPG); refining and marketing of petroleum products, LPG, chemical products, etc.
Head Office 16-1, Kaigan 1-chome, Minato-ku, Tokyo 105-8572, Japan Tel: +81-3-5403-3111
Refineries and Facilities
Kawasaki Refinery Sakai Refinery Wakayama Refinery TonenGeneral Research Center (Kawasaki)
Common Stock Authorized: 890,081,000 shares Outstanding: 592,543,018 shares Number of Shareholders: 52,900
Transfer Agent The Mizuho Trust & Banking Co., Ltd. 17-7, Saga 1-chome, Koto-ku, Tokyo 135-8722, Japan
(As of December 31, 2003)
Fact Book 2003Corporate Data
