Note: The following report is an English translation of the Japanese-language original.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2016
＜Supplementary material＞
May 12 , 2016

Japan Petroleum Exploration Co., Ltd.

Cautionary Statement
Any information contained herein with respect to JAPEX’s plans, estimates, strategies
and other statements that are not historical facts are forward-looking statements about
the future performance of JAPEX. Readers should be aware that actual results andevents may differ substantially from these projections due to various factors.
The provision of this document should not be construed as a solicitation for investment.
Copyright : All information contained herein is protected by copyright, and may not be
copied or reproduced without prior consent of JAPEX.
Note: Abbreviations used herein are as follows:
1H = First half (1Q-2Q)
2H = Second half (3Q-4Q)(a) = Actual result(e) = Estimate
FY = Fiscal Year (FY3/16, for instance, means 12 months ended March 31, 2016)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:Investor Relations Group,Media & Investor Relations Department,
Japan Petroleum Exploration Co., Ltd.
Tokyo, JAPANTEL: +81-3-6268-7111

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2013-03
2013-04
2013-05
2013-06
2013-072013-08
2013-09
2013-10
2013-112013-12
2014-01
2014-022014-032014-04
2014-05
2014-06
2014-072014-08
2014-09
2014-10
2014-11
2014-12
2015-01
2015-022015-032015-04
2015-05
2015-06
2015-072015-08
2015-09
2015-10
2015-11
2015-12
2016-01
2016-02
2016-03［Crude Oil Price US$/bbl]
$120
¥160

$110
¥150

$100
¥140

Crude Oil price US$/bbl (Left axis)$90

3

Exchange Rate
JP¥/US$(Right axis)
¥130

$80
¥120

$70
¥110

$60
¥100

$50
¥90

$40
¥80$30¥70［Foreign Exchange Rate JP¥/US$］

Trends in Crude Oil Prices and Foreign Exchange Rate

Actual Results for FY3/16 and Estimate for FY3/17 (Highlight)■ Actual Results for FY3/16 (vs FY3/15)

Billion ¥FY3/15(a)FY3/16(a)

304.9

240.3

-64.6

-21%

Operating Income

32.1

8.3

-23.8

-74%

Ordinary Income

54.8

4.6

-50.1

-91%

Profit attributableto owners of parent

29.5

2.0

-27.4

-92%

Billion JP¥
Net Sales

JCC Price(US$/bbl)
Exchange Rate(JP¥/US$)

Change

96.48

51.48

-45.00-46%

106.23121.06+14.83+14%FY3/16(a)FY3/17(e)240.3

194.5-45.7-19%

Operating Income

8.3

0.4-7.9-95%

Ordinary Income

4.6

1.0-3.6-78%

Profit attributableto owners of parent

2.0

1.9-0.1

-5%

51.48

45.00

-6.48

-12%

121.06115.00-6.06-5%

Net Sales

JCC Price(US$/bbl)
Exchange Rate(JP¥/US$)

70.0

304.9
300.0

250.0

Net Sales (Left Axis)

240.3

54.8

150.0

194.5

32.1

4

40.0

30.0

29.5

100.0

Change

60.0

50.0

200.0

■ Estimates for FY3/17 (vs FY3/16)
Billion JP¥

Billion ¥350.0

20.08.3

50.0

4.6

10.0

2.00.0FY3/15 (a)FY3/16 (a)0.4 1.01.9
FY3/17 (e)Right Axis
Operating Income
Ordinary Income
Profit attributable to owners of parent

0.0Actual Result

Actual Results for FY3/16 (Highlight)
billion JP¥

FY3/16
FY3/15 (a)Initial Estimate(e) (May.12, ‘15)

Revised Estimate(e) (Nov.6, ‘15)

Revised Estimate(e) (Feb.5, ‘16)(a)

Net Sales

304.9

271.1

257.7

245.7

240.3

Operating Income

32.1

9.1

8.6

8.6

8.3

Ordinary Income

54.8

14.0

5.8

5.1

4.6

Profit attributable toowners of parent

29.5

11.7

6.9

5.2

2.0

JCC Price(US$/bbl)

96.48

60.00

54.81

51.37

51.48

Exchange Rate(JP¥/US$)

106.23115.00120.82121.05121.06

Assumptions

 Initial Estimate (May. 2015)
Revised Estimate (Nov. 2015)
Revised Estimate (Feb. 2016)【-】Decline in sales prices for oil and gas,
Foreign currency translation adjustments on the foreign currency denominated debt,
Fluctuation in foreign currency exchange gains and losses,
An increase in the tax expense.
 Revised Estimate (Feb. 2016)
Second revision (Apr. 2016) and Actual Result (May.2016)【-】 Decrease of crude oil sales volume from overseas,
Impairment Loss.

5

Actual Result

Actual Sales of Natural Gas for FY3/16 (year-on-year)
FY3/15

Sales volume : Million M3
Net sales : Million JP¥

1H (a)

FY3/16

Full (a)1H (a)

changeFull (a)1H

FullSales volume

775

1,710

820

1,780+45+70

Net sales

37,45883,97433,031

68,469-4,427-15,505

Domestic gas

Sales volume

578

1,276

579

1,276+0-0(Domesticallyproduced gas)

Sales volume(382)

(813)

(361)

(769)

(-21)

(-44）

Overseas gas

Sales volume196434241504+45+70

Natural gas
Breakdown(Million M3)

2,000
Sales volume of overseas subsidiary gas

1,800
1,600
1,400

434504

1,276

1,276

Sales volume of domestic gas

1,200
1,000
800600400
Sales volume of “Overseas subsidiary gas” stated herein are amounts ofJapex (U.S.) Corp. and JAPEX Montney Ltd..

200-

FY3/15 (a)FY3/16 (a)6Actual Result

Actual Sales of Crude Oil for FY3/16 (year-on-year)
FY3/15

Sales volume : Thousand KLNet sales : Million JP¥

FY3/16change1H

Full3,233+372+837

57,148102,918-16,352-30,428

367

180

340-10-27

13,76823,857

8,427

13,815-5,341-10,042

Sales volume

273

830

669

1,616+396+786

Net sales

18,56843,466

24,416

48,384+5,847+4,918

Sales volume

152

332

143

306-9-26

Net sales

5,382

12,1052,927

4,894-2,454-7,211

JCC price

US$/bbl110.06

96.48

59.21

51.48

-50.85-45.00

Bitumen price (***)

US$/bbl

53.36

50.48

26.16

21.05

-27.20-29.43JP¥ / US$102.13106.23121.44121.06+19.31+14.83Crude oil

1H (a)

Full (a)1H (a)

Full (a)Sales volume

1,107

2,396

1,480

Net sales

73,500133,346

Sales volume

190

Net sales

Breakdown
Domestic crude oil (*)

Overseas crude oil (**)

Bitumen (***)
Assumptions

Exchange rate
(*)
(**)
(***)

Sales volume and net sales of “Domestic crude oil” stated herein do not include purchased crude oil.
Sales volume and net sales of “Overseas crude oil” stated herein are amounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd.
and Japex Garraf Ltd.).
Royalty is excluded in the net sales and price of Bitumen. From the 3Q FY3/16, Japan Canada Oil Sands Ltd., overseas consolidated subsidiaries,
have changed functional currency from Canadian dollar to US dollar.

7

Actual Result

Actual Results for FY3/16 (year-on-year)
FY3/15

FY3/16(a)(a)

Net sales

304,911240,302-64,609

Gross profit

70,26247,279-22,983

Exploration expenses

4,489

6,516

+2,027

Million JP¥

ChangeSG&A expenses

33,62532,426-1,199Operating income

32,146

8,336-23,810Non-operating income(expenses)

22,692-3,684-26,376

Ordinary income

54,8394,652-50,187

Extraordinary income(losses)-4,465-3,143+1,322

Income taxes

17,644

6,388-11,256

Profit attributable tonon-controlling interests(losses)

3,161-6,970-10,131

Profit attributable toowners of parent

29,567

2,090-27,477

8

Causes of increase(+) or decrease(-)
Gross profit
Domestic crude oil and natural gas - ¥10.3 billion
Overseas consolidated subsidiaries - ¥11.6 billion
Exploration expenses
Domestic exploration- ¥0.4 billion

Overseas exploration+ ¥2.5 billion

Non-operating income (expenses)
Equity in earnings- ¥10.3 billion
Foreign currency translation adjustments on debt,
Fluctuations in foreign currency exchange gainsand losses
Marginal profit ¥6.6 billion (FY3/15)→Losses ¥8.8 billion (FY3/16)- ¥ 15.4 billion

Extraordinary income (losses)
Decrease of an impairment loss + ¥0.9billion

Estimates for FY3/17

Revised Full Year Estimates for FY3/17[Assumptions for Crude Oil Prices and Exchange Rate]
Upper: from January 2015 to March 2016.
Lower: from January 2016 to March 2017.

Jan.-Mar. Apr.-Jun.
WTI

US$/bbl

JCC price

US$/bblExchange rate JP\/US$

JACOS
Bitumen

US$/bbl

JMLGas

CA$/mcf

1.
2.

2015(a)2016(e)

48.70
35.00

57.75
46.50
42.03
48.75
40.00 40.00 50.00
41.25
56.49
62.50
48.91
36.82
51.48
40.00 40.00 50.00 50.00 45.00
119.74 123.31 120.76 120.09 121.06
115.00 115.00 115.00 115.00 115.00

22.37
6.35
2.37
1.95

30.64
11.53
2.35
1.87

2015(a)2016(e)2015(a)2016(e)2015(a)2016(e)2015(a)2016(e)Jul.-Sep. Oct.-Dec. Jan.-Mar.

Full
year

19.70
2.30
1.85

13.55
1.57
1.85

21.05
8.392.12
1.88“JACOS Bitumen” stated herein Bitumen selling price of Japan Canada Oil Sands Ltd. (Deduction of Royalty).
Assuming a temporary suspension of the production operation at the Hangingstone Demonstration Project
area from May 2016, not estimate the 2H sales.
“JML Gas” stated herein Gas sales price of JAPEX Montney Ltd. (Deduction of Royalty)
9

Estimates for FY3/17

Estimated Natural Gas Sales in FY3/17
Sales volume : Million M3
Net sales : Million JP¥FY3/16
1H (a)

FY3/17Full (a)1H (e)

changeFull (e)1HFullSales volume820

1,780871

1,811+51+31

Net sales

33,031

68,46924,88954,607-8,142-13,862

Domestic gas

Sales volume

579

1,276

570

1,259-8-17(Domesticallyproduced gas)

Sales volume(361)

(769)

(341)

(737)

(-20)

(-32)

Overseas gas

Sales volume

241

504

300

551+59+47

Natural gas ：Breakdown(Million M3)

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200-

Sales volume of overseas gas

504

551

1,276

1,259

Sales volume of domestic gas

Sales volume of “Overseas gas” stated herein are amounts of Japex (U.S.)
Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

FY3/16 (a)FY3/17 (e)10Estimates for FY3/17

Estimated Crude Oil Sales in FY3/17
FY3/16

Sales volume : Thousand KL
Net sales : Million JP¥

FY3/17change1H (a)

Full (a)1H (e)

Full (e)Sales volume

1,480

3,233

1,280

2,564-200-669

Net sales

57,148102,918

32,23376,286-24,915-26,632

Sales volume

180

340

150

296-30-44

Net sales

8,427

13,815

4,671

10,288-3,756-3,527

Sales volume

669

1,616

669

1,326-0-290

Net sales

24,41648,384

15,86636,182-8,550-12,202

Sales volume143306

9394-50-212

Net sales

2,927

4,894

538

568-2,389-4,326

JCC price

US$/bbl

59.21

51.48

40.00

45.00

-19.21-6.48

Bitumen price (***)

US$/bbl

26.16

21.05

7.96

8.39

-18.20-12.66

Exchange rateJP¥ /US$

121.44121.06115.00115.00

-6.44

-6.06

Crude oil

1H

Full

Breakdown
Domestic crude oil (*)

Overseas crude oil (**)

Bitumen (***)
Assumptions

(*)
(**)

Sales volume and net sales of “Domestic crude oil” stated herein do not include purchased crude oil.
Sales volume and net sales of “Overseas crude oil” stated herein are amounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd.
and Japex Garraf Ltd.).
(***) Royalty is excluded in the net sales and price of Bitumen. Japan Canada Oil Sands Ltd., overseas consolidated subsidiaries, has decided totemporarily suspend a production operation of bitumen at the Hangingstone Demonstration Project area from the middle of May 2016. Japan Canada OilSands Ltd., have changed functional currency from Canadian dollar to US dollar from the 3Q FY3/16.

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Estimates for FY3/17

Estimates for FY3/17
Million JP¥
Net sales

FY3/16

FY3/17(a)(e)

240,302

194,575

Change-45,727

Causes of increase(+) or decrease(-)
Gross profit
Domestic crude oil and natural gas
Overseas consolidated subsidiaries

Gross profit

47,27930,547-16,732

Exploration expenses

6,516

1,867-4,649

Exploration expenses

SG&A expenses

32,42628,280-4,146

Overseas exploration

Operating income

8,336

400-7,936

SG&A expenses

Non-operating income(expenses)-3,684

614+4,298

Consignment revenueDomestic exploration- ¥8.6 billion- ¥5.9 billion- ¥2.5 billion- ¥1.0 billion- ¥3.6 billion

Decrease of transportation cost and G&A expenses ofJACOS- ¥1.5 billion

Cost Reduction, Decrease in depreciation- ¥1.0 billion

Ordinary income

4,652

1,014

-3,638Extraordinary income(losses)-3,143-69+3,074

Income taxes

6,388

2,510-3,878

Foreign currency translation adjustments on debt,Fluctuations in foreign currency exchange gains and+¥8.2 billion
losses

Losses attributable tonon-controlling interest(-)-6,970-3,550+3,420

Extraordinary income (losses)

Profit attributable toowners of parent

2,090

1,985

-105

12

Non-operating income (expenses)
Equity in earnings- ¥2.8 billion

Decrease in the impairment loss+¥3.0 billion

Estimates for FY3/17

Assumptions and Impact on Profits
Assumptions

JCC price

Exchange rate

Canadian gas prices

45.00 US$/bbl

115.00 JP¥ / US$1.88 CA$/mcf

A weakening in 1 JP¥/US$
exchange rates would pushprofits up by…

1 CA$/mcf increase in
Canadian gas prices would
push profits up by…

FY3/17
Impact on Profits

1 US$/bbl increase in
JCC prices would pushprofits up by...

Operating incomeJP¥ 490 millionJP¥ 260 millionJP¥ 1,480 million

Net incomeJP¥ 340 millionJP¥ 140 millionJP¥ 630 million

FY3/16

Assumptions

1H (a)

2H (a)

FY3/17Full (a)1H (e)

2H (e)

Full (e)changeJCC price

US$/bbl

59.21

42.89

51.48

40.00

50.00

45.00

-6.48

Exchange rate

JP¥/US$

121.44120.47121.06115.00115.00115.00-6.06

Canadian gas prices

CA$/mcf

2.36

1.88

2.12

1.91

1.85

1.88

-0.24

Note:

In addition to the impact of exchange rate fluctuations shown on the above, translation adjustments of foreign-currencydenominated receivables and payables also occur.
Actual profits are influenced by a variety of other factors besides crude oil prices and exchange rates.

13