Transformation Story ~Challengers changing the future from the front lines~

As a service highly compatible with customers who use our service stations, we are operating "apolloONE," a mobility service specialty store that does not require refueling. These stores cater to the needs of each region, offering services such as vehicle inspections, coatings, used car sales, dealers and on-site staff, and the actual situation on-site, and I find it extremely engagement to create one-of-a-kind stores.
We will continue to work on further evolving "apolloONE" to meet the diverse needs of the people and lifestyles of each region, the management vision of dealers, and the aspirations of staff.

Recently, many companies have become more aware of carbon neutrality, and we developed the Daphne Alpha Cool NV series with the desire to create a product that contributes to carbon neutrality while reflecting the voices of people actually working in production sites.
In developing this product, we thoroughly investigated the issues based on feedback from actual users and dealers involved in sales, and through repeated prototype testing with customers, we were able to create a formula that reduces usage while improving the environment and productivity. Since its release, we have received a lot of positive feedback, with many customers saying that it has led to improvements in the work environment and reduced usage. We believe that this ability to utilize real feedback from the workplace to solve issues led to us winning the "Super" Monozukuri Parts Award (sponsored by the Monozukuri Nippon Conference and the Nikkan Kogyo Shimbun).

We at ILC are an integrated manufacturing and sales base with research and development, manufacturing, and sales functions. We are in charge of the entire Chinese market, with the EV sector being our main battlefield.
China's EV market is growing rapidly and is now the largest in the world. We were one of the first to develop oil specifically for e-Axles, the drive units of EVs, and boast a high market share in China, where competition is intensifying. As e-Axle oil needs to be compatible with the various parts of the unit, we worked with our customers to develop it through a lot of trial and error. As a result, it has been adopted by major Chinese automakers, and Chinese-made products are now expanding not only in China but also in the global market.
We will continue to strive to provide value as a comprehensive lubricant manufacturer by balancing cutting-edge research and development with stable manufacturing and supply.

"Idemitsu Denki" offers plans for both standard households and all-electric households. Unique features of our company include a "Car Special Discount" that allows customers to choose between a 2 yen discount on gasoline or a discount on their EV electricity bill, a program that allows customers to earn points by saving energy and charging their EV, and the option to choose renewable energy sources. We also offer a service* that purchases surplus solar power generated by households. Aiming to achieve both environmental and economic benefits by combining a variety of power sources in a balanced manner, we maximize the synergies of our group to offer attractive electricity rate plans and services, primarily to car users. Furthermore, through the services we provide to our customers, we are working to utilize and promote renewable energy.

• Targets solar power generation for which the feed-in tariff system has expired

The Innovation Center has played a central role in providing training through reskilling, and I believe that the ability of researchers in each department who are well-versed in materials to implement and utilize MI themselves is a major strength of our company's R&D.
As a member of the Innovation Center, I have been able to gain early exposure to cutting-edge technologies, including quantum computers, which are expected to be the next generation of MI, and I am exploring how to utilize them in each department. In addition to understanding materials, we are sometimes required to develop our own technologies to suit each issue. In my fourth year at the company, I participated in a three-week training program at a North American consulting firm to further hone my skills. Working with local engineers and researchers, I established a technology that uses generative AI to generate synthesizable molecules with desired physical properties. This is uncharted territory, and there are many challenges, but I continue to take on the challenge in order to accelerate material development.

With our company having received National Commendation for Invention Program in the past and intellectual property being a hot topic in the media recently, I applied for the side job program to deepen my understanding of our company's intellectual property. Before participating, I thought it would be difficult for our company, whose Petroleum business accounts for the majority of its sales, to strategically utilize intellectual property. However, by comparing our case studies with other companies, I realized that our strategic utilization of intellectual property is comparable to that of other companies. In addition, as a company with a core business Petroleum, we have the infrastructure to steadily foster technological development in other businesses, and I felt that an intellectual property strategy developed within this environment would lead to increased future corporate value. As more colleagues within the company learn how to utilize intellectual property through these a secondary job in-house opportunities, I believe we will be able to advance the use of intellectual property in business management, such as investment and financing decisions, and create even more value.

We have introduced a new system that incorporates mathematical optimization into the task of planning the allocation of ocean-going vessels used to transport crude oil from overseas. Previously, skilled personnel spent an enormous amount of time creating plans to satisfy complex constraints, but with the introduction of this system, it has become possible to quickly create vessel allocation plans that minimize transportation costs.
In the demonstration test, it was possible to reduce work time by up to 40%, and annual cost savings of several hundred million yen are expected. In particular, the process of carefully modeling the experience and knowledge of the staff and incorporating it into the algorithm was a "challenge to transformation" through collaboration between the field and digital.
We will continue to strive to achieve both a stable supply of petroleum products and more efficient logistics through further functional enhancements.

Despite the harsh natural environment Hokkaido Refinery has continued to pursue greening on its premises, and now, after more than 50 years of operation, the area has grown into a lush green space. The diverse flora and fauna provide a place of relaxation for staff and a wonderful stage for local contribution activities, with many local residents enjoying the parent-child environmental class "Idemitsu Living Creatures Research Team" and the public opening of the double cherry blossom avenue every year. The photo on the left was taken with the cherry blossom avenue in full bloom.
One of our activities that utilizes local characteristics is our participation in the Haskap Bank. The eastern part of Tomakomai City, where our office is located, is the largest wild habitat for haskap in Japan, and it is a fruit known for its unique flavor. However, in recent years, the number of natural habitats has been greatly reduced, and the Haskap Bank brings together government and private sectors to protect and cultivate native species and pass on the culture. Our office had a connection with the bank, as we had a wild haskap garden on our premises, and we cooperate by providing pruning training courses and opportunities for harvesting experiences. Working with the local community and hearing their honest opinions is both encouraging and engagement.

I am in charge of researching and analyzing the business environment and public relations. The business environment surrounding Resources recycling field is changing every day, and my main job is to quickly grasp these trends and reflect them in business plans, as well as negotiating and building relationships with government and academic officials.
What motivates me most is the moments when I work with my colleagues to brainstorm and execute ideas to launch and expand an oil-chemical recycling (oil-CR) business that contributes to the global environment. Resources recycling initiatives are still in their infancy worldwide, and there are many uncertainties. In this environment, we will promote the expansion of our oil-chemical recycling business by envisioning the ideal form of business for the realization of Resources circulating society and working to understand and address the laws, regulations, and systems.