資料3 Solomon Associates World’s Best Refineries

1 Proprietary and Confidential 2016 HSB Solomon Associates LLC 1 Solomon Associates world s best Refineries Suggestions for the Refiners in japan 20 December 2016 Proprietary and Confidential 2016 HSB Solomon Associates LLC 2 Solomon Benchmarking Global Standard Our data are proprietary, not pulled from inconsistent, publicly available sources Hundreds of Refineries , representing more than 85% of the worldwide crude refining capacity, voluntarily participate in Solomon s Fuels Study We show our clients where their operations stand against the spectrum of global competition We see the trends of change as of companies repeat participation study after study Proprietary and Confidential 2016 HSB Solomon Associates LLC 3 world s best Selection Criteria Return on Investment (ROI) OpEx Energy (EII) Maintenance (MEI) License to Operate Reliability (Operational Availability) Three Consecutive Study Cycles 5 in North America 1 in Europe 4 in Asia To p half in key Solomon metrics.

2 ROI, Operational Availability, EII, and MEI < 3% of Refineries Proprietary and Confidential 2016 HSB Solomon Associates LLC 4 Characteristics of the world s best Covers a Wide Range of Characteristics Percent of WB Average Topper Capacity, k bbl/d Complexity Age, yr Crude, API Crude Sulfur, wt % 380 24 japan Average The world s best covers a wide range of size, complexity, and age Japanese refiners are capable of achieving the world s best performance level Proprietary and Confidential 2016 HSB Solomon Associates LLC 5 Characteristics of the world s best Average Process Unit Age Average Years in Service world s best Average japan Average Fluid Catalytic Cracker 32 34 Alkylation 39 23 Coker 23 28 Naphtha Reformer 26 31 Hydrocracker 18 27 The world s best have learned to extract value from aging assets Proprietary and Confidential 2016 HSB Solomon Associates LLC 6 Reliability (Operational Availability) Country Rank using Average of Old Refineries * Rank 2006 2008 2010 2012 2014 1 Argentina (~97) Germany (~97) Saudi Arabia (~97) Saudi Arabia (~97) Argentina (~97)

3 2 Germany Saudi Arabia Argentina Germany Saudi Arabia 3 USA Argentina Germany Argentina Germany 4 5 6 7 8 9 10 11 12 japan ( ) japan ( ) japan ( ) 13 14 japan ( ) japan ( ) * RefAge japan Average RefAge Old Refineries in 13 countries are more reliable than the Old Refineries in japan The reliability gap represents 18 days of annualized downtime Proprietary and Confidential 2016 HSB Solomon Associates LLC 7 Competitiveness Worldwide Breakeven Production Cost Analysis 1 2 3 4 Quartile 50 USD/bbl Crude Cost of Transportation Fuels JA LX JB5 JA KA LX JB5 2014 Actual WB KA WB Refineries in japan are more competitive when crude oil prices are low JA = japan Average JB5 = japan Top-5 KA = Korea Average LX = Large Asia Export WB = world s best Proprietary and Confidential 2016 HSB Solomon Associates LLC 8 Characteristics of the world s best Compared to the japan Average in 2014 Volume % of Net Input world s best Average japan Average Facilities

4 Integration Feedstock to Lubes Feedstock to Chemicals Petrochemical Products Resid Products The japan average refinery is already very complex and highly integrated, yet produces large amounts of products that are valued below the average Raw Material Cost Proprietary and Confidential 2016 HSB Solomon Associates LLC 9 Technical Staffing Gap in japan 2014 Study (Company + Contract Employees) Equivalent Number of Engineers The y-axis signifies the incremental staffing for the average refinery in japan , at the 2014 japan capacity and configuration, to be staffed at the same level as the four groups shown Proprietary and Confidential 2016 HSB Solomon Associates LLC 10 Energy Efficiency (EII) Country Rank* Rank 2006 2008 2010 2012 2014 1 Thailand (<85) Korea (<86) Korea (<85) Korea (<80) Korea (<80) 2 Korea Canada Netherlands Thailand Netherlands 3 Canada Netherlands Thailand Netherlands Saudi Arabia 4 5 japan (90) japan (90) 6 japan (89) 7 8 9 japan (90) 10 japan (90) 11 12 13 14 15 16 17 18 19 20 * A selected group of countries with four or more fuels Refineries No significant energy efficiency improvement in the japan average refinery Is this lack of continuous improvement related to the technical staffing gap?

5 Proprietary and Confidential 2016 HSB Solomon Associates LLC 11 Summary Suggestions for Refiners in japan Acknowledge that value can be extracted from aging assets Complexity is already high, yet resid conversion lags Additional resid conversion is needed to remain competitive Up to 30% of the gap can be closed by continuous improvements in: Unit Capacity Utilization Unit Yield Efficiency Efficiency Increased productive technical staffing levels are needed to identify and drive improvement initiatives Many Refineries in japan are capable of achieving the world s best performance level Proprietary and Confidential 2016 HSB Solomon Associates LLC 12 Comparative Performance Analysis (CPA ) We Benchmark the Oil & Gas Value Chain Upstream Exploration & Production Onshore Production Offshore Production FPSO SAGD Midstream Liquid Pipeline Natural Gas Pipeline Terminals Natural Gas & LNG Processing Downstream Fuels & Lube Refining Petrochemicals Integrated Sites Reliability & Maintenance Power Generation Proprietary and Confidential 2016 HSB Solomon Associates LLC 13 Legal Statement The information and methodologies outlined herein are proprietary and their expression in this document is copyrighted, with all rights reserved to HSB Solomon Associates LLC ( Solomon ).

6 M Measure. Manage. Maximize. , Comparative Performance Analysis , CPA , Performance Excellence Process , Q1 Day 1 , EDC , EII , CEI , CWB , Solomon Profile II, and other marks are registered and proprietary trademarks of Solomon . The absence of any indication as such does not constitute a waiver of any and all intellectual property rights that Solomon has established. Proprietary and Confidential 2016 HSB Solomon Associates LLC 14 For more information: Jun Okawa Solomon Associates (Tokyo) 03 5410-3555 090-6115 7787 Email: for making Better Business Decisions Transforming Data into Insights