（Sep. 2016）
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What is LPG? ①
LPG is an energy source used by about 41％ of Japanese families.
All-electric
5 mil. families*３
LPG
Family-use
25 mil. families*１
Energy Demand
City gas
（*Including community gas users)
（FY2014）
29 mil. families*２
(*1) Ref.: Japan L.P.Gas Sales Association （2014）
(*2) Ref.: Agency for Natural Resources and Energy （2014）
(*3) Ref.: SEKIYU-KAGAKU-SINBUN-SHA （2014）
Composition of LPG
：Propane and Butane
Propane (C3H8)
…Used by families
Butane (C4H10)
…Used by industry and
vehicles
Character of LPG
: Easy to Carry
Features of LPGⅠ
: Clean Energy
: High Calorie
Amount of CO2 emissions
from production to burning.
1.28
1.00
0.89
0.85
24,000 kcal/m3
Evaporation
11,000 kcal/m3
Liquefaction
Easy to reduce volume
by pressurization and cooling
Features of LPGⅡ
ＬＰ ガス
LPG
都市ガス
City gas
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ＬＰG
Petroleum
Coal
City gas
( Ref.: Japan LPG Association)
1
What
is LPG? ②
ＬＰガスとは②
LPG supply is resilient for disaster.
1) Quick recovery by individual service
2) Available supply to shelter and temporary housing
Unavailable supply cased in each infrastructure in the three devastated prefectures
Electric Power
LPG restored : April 21,2011
City Gas restored : May 3, 2011
LPG
Electric Power restored : June 18,2011
City Gas
（Ref..: METI February 2012）
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2
Use
of LPG
ＬＰガスの用途
The main users of LPG are families, businesses and industries.
Domestic demand is decreasing because of the spread of
energy-saving products
Demand of LPG by use (thousand tons)
16,404
958
1,722
985
1,122
2,997
8,620
16,571
Electric power
15,504
15,394
14,697
Chemical
655
300
170
materials
1,696
1,918
2,066
1,128
1,019
1,894
City gas
1,178
966
1,432
897
City gas is comprised mainly of methane.
LPG is used to increase its calorific value.
Vehicles
2,741
2,796
There are around 30 mil. vehicles using
LPG in Japan, and the main fuel is butane.
Industries
To heat ferrous and nonferrous metal.
To dry various material and foods.
1,546
2,914
8,268
8,046
1,339
821
2,839
7,902
7,635
Families and
businesses
FY2011
(Result)
Back-up for thermal power stations
FY2012
(Result)
FY2013
(Result)
FY2014
(Result)
Demand for Butane for chemical
products, for example ethylene, is increasing.
Main component is propane.
The gas is supplied to families and
businesses from cylinders.
FY2015
(Result)
（Ref..：Japan LP Gas Association )
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3
The
LPG Market
ＬＰガス業界について
This market has three classes—as distributors,
wholesalers and retailers.
It is essential to streamline the retailer field.
《LPG industry structure》
Primary
Distributors:
役割
6 companies*
Primary
Distributors
Wholesalers: 1,100 companies*
Retailers: 19,514 companies*
Iwatani’s Market share
Wholesalers：NO.1 Retailers：NO.1
Whole
salers
現状
・Import and sale for
wholesalers
・Production and sales
from refinery
・The companies selected by
increasing competition in
the market.
（1980: 25 players
→2015: 6 players.）
・Purchase LPG from
distributors and
sell to retailers
・A leading company exists
in each religion.
・Extending into the retail
field.
* The number of the domestic companies
The Number of Retailers
（Companies）
Retailers
（Ref.: METI The number of retailers and safety agencies revised June 2016）
・Purchase LPG from
wholesalers
・Do various things:
sales to families,
delivery, maintenance.
・The cost of delivery and
maintenance is increasing
because of so many local
retailers.
Streamlining is essential.
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4
Iwatani’s
LPG Business
イワタニのＬＰガス事業
(¥ billion)
Families and
businesses
Gas machinery・
Others
49%
25%
Advantage 1: Customer base established
throughout Japan.
Our customers
Direct customers
3.1 million
830 thousand
Families Using
LP Gas in Japan
Energy Division
Net Sales
25.0 million
289
Related
petroleum
（FY2015）
10%
→Iwatani’s Brand
Overseas
10%
Sustainable
revenue base
Industries
ＬＰＧ
Advantage 2: Integrated supply system
from import to retail.
7%
Factor of Achievement Change
Change of temperature
and water temperature
(As of March 2016)
1st base—import terminal…4 sites
Nationwide network
(Kashima, Sakai, Mizushima, Oita)
2nd base…3 sites
Ensuring
stable supply
Change of import price of LPG
(Yokohama, Hirata, Okinawa)
3rd base—filling place…103 sites
(As of March 2016)
Iwatani’s LPG Market share : Wholesalers and Retailers NO.1
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5
Strategy of LPG Business
総合エネルギー事業（戦略）
Expansion of the number
of consumer households
≪Our customer≫
(Ten thousands)
Creation of business opportunities
in response to liberalization of
the electricity and gas retail market
We started entering
retail sales of electricity
around Tokyo area
form April 2016.
Promotion of the total energy and living services business
through enhancement of the B-to-C product offering
Solar power
Portable cooking stove
Fuji-no-Yusui
Mineral skin lotion
(fujina)
GHP
Emergency LPG
generators
Cassette gas fan heater
Internet direct-sales
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6
Reference
Data Ⅰ: Import Price of LPG
参考資料①：ＬＰガス輸入価格（CP）について
The price depends on import price of LPG (CP) set
by Saudi Aramco Corporation.
（$/ｔ）
LPG (Propane)Import price (CP)
Ave. FY 2015： $388/t
Ave. FY 2014： $683/t
Ave. FY 2013： $866/t
(fiscal year)
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Reference
Data
〈Reference〉
TheⅡ：
influence of LPG import price (CP)
Impact of LPG Import Price (CP) Fluctuations
(General Overview)
Legal stock period
50 days
#1 wholesale price is determined by
average price between current CP and
LPG tanker
previous CP every month.
#2 It takes three months to transport LPG
End user
Our LPG import base
Oil country
Approx.
3 months
form Oil countries to end user site.
Gain or loss results from FIFO impact.
In the long term perspective, the FIFO impact is considered negligible*.
When Price falls
When price rises
Sales price
Sales cost
(3 month before)
CP
Increase
in profit
Sales cost
(3 month before)
Sales price
Decrease
in profit
CP
*Actual performance may be influenced by inventory volume, timing (season) of sales, sales volume, and other factors.
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Reference
Data Ⅲ: Energy Division
参考資料③: 総合エネルギー事業
(¥ billion)
What is included in
“Gas machinery and others”?
Gas machinery・
Others
Families and
businesses
25%
49%
Energy machinery
Energy Division
Net Sales
Related
petroleum
289
（FY2015）
10%
Solar Power
Emergency
LPG
generators
Fuel cells
Overseas
10%
 We can make total energy proposals from various items.
Portable cooking stoves and
gas canisters
Portable cooking stoves
and gas canisters
Industries
7%
What is “Overseas” sales?
Swap transactions to import LPG efficiently
Energy Division
Sales
FY2015
ＬＰＧ
65% share in the
40% share in the
domestic market
domestic market
 Both portable cooking stoves and gas canisters have
large domestic market shares but this group occupies
only a few percent in Energy Division sales.
 “Overseas” means swap transactions to import
LGP between same trading companies.
 This transaction has no influence on profit due
to price fluctuation.
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9