August 6, 2001
Corporate Name: Nichimen Corporation
Representative: Toru Hambayashi, President
(Listing Code Number 8004)
Inquiries to: Yoshiki Furuya, General Manager
Public Relations & Investor Relations Dept.
Nichimen Group and Shinanen Made
Basic Agreement on Transfer of LPG Business
Nichimen Corporation (“Nichimen”) and its wholly owned subsidiary Nichimen Energy Co, Ltd.
(“Nichimen Energy”) reached a basic agreement with Shinanen Co., Ltd. (“Shinanen”) today to
transfer their Liquefied Petroleum Gas (“LPG”) business to Shinanen. Below are given the details
of the agreement.
1. Reason for Business Transfer
The Nichimen Group is undergoing the “selection and concentration” of its business operations as
part of its NP 2002 medium-term management plan initiated in April this year, with an eye to
rebuilding its business portfolio. Today, the Nichimen Group has decided to transfer part of its LPG
business, which is being operated by Nichimen and Nichimen Energy. This decision would enable
the Nichimen Group to redistribute its financial resources to its other strategic business areas as
specified in NP 2002.
After this, Nichimen Energy will dispose of or consolidate some of its gas stations that are
unprofitable, and continue its efforts to help its existing gas stations add capabilities to offer
compressed natural gas (CNG). It is also intending to improve operating efficiency by reducing
2. Contents of Business Transfer
1) Business to be transferred
･Business of Liquefied Petroleum Gas (“LPG”)Section, Petroleum and Carbon Dept.
of Nichimen: Import and wholesale of LPG
Business results for FY2000 (ended March 2001) ref..)
LPG Section only
(a) (non-consolidated) (b) (a/b)
¥ 17,412 million
¥ 1,753,307 million
¥ 255 million
¥ 8,069 million
･Business of the Gas Division of Nichimen Energy: Sales of LPG