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Sustainability Report 2006 | Outline of the Cosmo Oil Group

The Cosmo Oil Group operates oil businesses, ranging from the development of crude oil (upstream business) to the manufacturing and sales of oil products (downstream business).
In addition, we explore new business areas of energy, and new technology development to, aiming to achieve a best mix of energy sources.

Oil business flow and group summary

As of March 31, 2006 Consolidated subsidiaries: 30 companies

Legends
… Consolidated subsidiary
… Non-consolidated subsidiary under equity method
… Non-consolidated subsidiary out of equity method
… Affiliate under equity method
… Affiliate out of equity method

Crude oil development

Cosmo Oil imports crude oil mainly from Middle Eastern countries. We aim to maintain a stable oil supply by means of distributed purchases from multiple countries, and the self development of crude carried out by companies belonging to the group.

◎Abu Dhabi Oil Co., Ltd. ◎Qatar Petroleum Development Co., Ltd.  ■United Petroleum Development Co., Ltd. Others:◎2 companies □1 companies

Import/export of crude oil and petroleum products

◎Cosmo Oil International Pte., Ltd. ◎Cosmo Oil UK Plc. Other: ◎1 company

Marine transportation

We take measures against marine accidents, for example by switching to double-hull tankers, establishing Nippon Global Tanker Co., Ltd with Nippon Oil Corporation to conduct joint plying, and employing large-sized tankers to increase crude transportation efficiency.

□Nippon Global Tanker Co., Ltd.

Oil refining and product manufacturing

Our refineries carry out various initiatives: using energy efficiently, reducing industrial waste, and preventing air and water pollution. We have started manufacturing environmentally friendly sulfur-free fuels (gasoline and diesel oil).

Cosmo Oil Co., Ltd.

Storage

◎Hokuto Kogyo Co., Ltd. ■Tozai Oil Terminal Co., Ltd. ■Okinawa CTS Corp. Ohgishima Oil TerminalCo., Ltd. Others:◎2 companies □4 companies

Petroleum product manufacturing : LPG, Gasoline/naphtha, Kerosene/Jet fuel, diesel fuel, Heavy fuel oil, Asphalt

Lubricant production

◎Cosmo Oil Lubricants Co., Ltd.

Petrochemicals manufacturing

◎Cosmo Matsuyama Oil Co., Ltd. ◎CM Aroma Co., Ltd. ■Maruzen Petrochemical    Co., Ltd.

Research and development

◎Cosmo Technology Research Institute

Domestic transportation

We increase the efficiency of our distribution system and save energy by employing large-sized tanker trucks and domestic tankers and increasing the stowage rate. For transport by land, we aim at high efficiency and energy saving by means of independent loading and unloading, and night delivery.

◎Cosmo Kaiun Co., Ltd. ◎Sakaide Cosmo Kosan Co., Ltd. ◎Cosmo Delivery Service Co., Ltd. Others:◎6 companies ● 4 companies □9 companies

Other businesses
(construction, insurance, leasing, real estate, rental, etc.)

◎Cosmo Engineering Co., Ltd. ◎Cosmo Trade & Service Co., Ltd. ◎Cosmo Business Support Co., Ltd. Others: ◎4 companies ● 15 companies ○3 companies □3 companies

Sales

We check about 5,000 service stations for the actual status of environmental control twice a year, and make improvements based on the results. To make our service stations environmentally friendly, we installed solar cell panels at 37 service stations.

◎Cosmo Petroleum Gas Co., Ltd. ◎Cosmo Oil Lubricants Co., Ltd. ◎Cosmo Oil Sales Co., Ltd. Others:◎5 companies ■1 company ● 15 companies □19 companies ○1 company

Business field expansion

Power supply

The Yokkaichi Refinery takes advantage of residual oil for its IPP business. The Yokkaichi Kasumi Power Plant, which has a power generation capacity of 200MW, started in July 2003. We sell the power to Chubu Electric Power Co., Ltd.

Energy service

We have developed a distributed power supply system that produce low-cost energy for on-site use at facilities such as hospitals and factories. The system uses waste heat generated during electricity production in order to increase the energy utilization efficiency and to reduce CO2 emissions.

New fuel development

We have demonstrated LPG fuel cell systems and developed technologies for producing household fuel cell systems and for using recyclable biomass and GTL fuels.

ALA

Cosmo Seiwa Agriculture Co., Ltd(Note)
ALA (5-aminolevulinic acid) is natural super amino acid from which chlorophyll or blood is made. Cosmo Oil has produced it successfully and started selling "Pentakeep V," a highly functional fertilizer containing ALA. The hair industry is interested in ALA because of its trichogenous effect.

Note: Affiliate out of equity method.

Corporate profile (as of March 31, 2006)

Name Cosmo Oil Co., Ltd.
Head office 1-1-1, Shibaura, Minato-ku, Tokyo 105-8528 Japan
Telephone +81-3-3798-3211
Established April 1, 1986
Capital 62,366,816,126 yen
Purpose of Business Oil Refining and Sales
Employees 1,718
History Cosmo Oil Co., Ltd. was established on April 1, 1986 resulting from the merger among Daikyo Oil Co., Ltd., Maruzen Oil Co., Ltd., and the former Cosmo Oil Co., Ltd, their refinery subsidiary. Asia Oil Co., Ltd. was merged with Cosmo Oil on October 1, 1989.
Dealers 303 offices/4,552 service stations
Branch office Sapporo (sales), Sendai, Tokyo, Nagoya, Osaka, Hiroshima, Takamatsu, and Fukuoka
Refineries Chiba, Yokkaichi, Sakai, and Sakaide
Oil depots 38 places (including 35 subcontractors and excluding the discontinued)

Financial Data

Net SalesOperating and net income
Sales volume
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