Regarding the Conclusion of a Loan Agreement with Financial Covenants

Overview of the Agreement

Idemitsu Kosan Co., Ltd. concluded a loan agreement with an independent administrative institution on April 30, 2026, for funding the purchase of crude oil stockpiles. The principal amount of the loan is 174,095 million yen, and the repayment period is from April 30, 2026, to April 30, 2027. No collateral has been set.

Details of Financial Covenants and Future Outlook

This agreement includes financial covenants, whereby if the consolidated financial statements show significant net liabilities or if the ordinary profit/loss or net income after tax is negative for three consecutive fiscal years, the lender may demand repayment, causing a loss of the benefit of the term. However, the impact of this agreement on consolidated performance is considered minimal.