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

Presentation of Consolidated financial results
for the six months ended September 30, 2012

November 2 , 2012

Japan Petroleum Exploration Co., Ltd.
copyright©2012 JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights reserved.

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 the prior consent of JAPEX.

Note: The following abbreviations are used within this document:
1H = First half (1Q-2Q)
2H = Second half (3Q-4Q)(a) = Actual result(e) = Estimate
Any inquiries about the information contained herein or other Investor Relations questions
should be directed to:Investor Relations Group, Media & Investor Relations Department,
Japan Petroleum Exploration Co., Ltd. (JAPEX)TEL: +81-3-6268-7111

2

Contents
１．Business overview
President

Osamu Watanabe

２．Consolidated financial results
for the six months ended September 30, 2012
Executive Vice President

Hiroshi Sato

３．Revised full year forecasts

for the fiscal year ending March 31, 2013
Executive Vice President

3

Hiroshi Sato

Business overview
President

Osamu Watanabe

4

$130

crude oil price US$/bbl (left axis)

$120

$110

$90

¥90

$80

$70

Exchange rate \/$(right axis)
¥80

$60

$50

Japan Crude Cocktail (JCC) Price in the first 10 days of October 2012
on a prompt report basis : USD 114.74/bbl

Yen

78.24/USD

5

¥70

$40

[foreign exchange rate: JP\ /US$]

¥100

$100
¥110

2009-10
2009-11
2009-122010-01
2010-022010-032010-04
2010-05
2010-06
2010-072010-08
2010-092010-10
2010-112010-122011-01
2011-02
2011-03
2011-04
2011-05
2011-06
2011-072011-08
2011-09
2011-10
2011-11
2011-12
2012-01
2012-022012-032012-04
2012-05
2012-06
2012-072012-08
2012-09
2012-10$140¥120[crude oil price US$/bbl]

Trends in Crude oil prices and Foreign exchange rates

Revised estimates for FY2013 (Highlight)[ Billion ￥]

FY12
(a)

Billion ￥FY13 (e)Initialestimate

Revisedestimate% change(vs Initial
estimate)change(May11 ‘12(Oct. 26‘12)

230.6

214.7

222.2

7.6

4%

Operating income

15.0

10.0

10.3

0.3

3%

Ordinary income

22.1

16.8

18.9

2.0

12%

Net income

17.0

16.5

(11.6)(28.2)

112.43100.00112.08

12.08

Exchange rate
Yen/USD

78.93

80.00

80.19

0.19

Bitumen price
CAD/bbl

49.81

52.91

48.76

Exchange rate
Yen/CAD

76.22

80.00

80.00

1Q (a)

2Q (a)

3Q (e)Net Sales

JCC price
USD/bbl

JCC price
USD/bbl
Bitumen price
CAD/bbl124.11106.79

54.22

49.57

115.00-Billion ￥

240

25

230.6
230

20

Net Sales (left axis)

222.2

22.1

220

17.0
15.0

16.8

16.5

15

18.9

214.7

210

10
10.0

10.3

200

5

(4.15)

190

0

-

180

-5

4Q (e)

100.00

45.29

-11.6

170

160
12/3 実績
FY12(a)Main points of revised estimate :□ Increased Profit*Increase in sales price*Increase of dividends income□ Decreased Profit*Downward revision of the production and sales plans for natural gas and crude oil*Imparment loss of business assets at Yufutsu oil & gas field

6

FY13(e)13/3
当初予想

Initial Estimate

FY13(e)13/3
今回予想
Revised Estimate

Operating income (right axis)
Ordinary income (right axis)
Net income (right axis)

-10

-15

Outline of Yufutsu oil and gas field
and the postnig of impairment loss for its business assets【Outline of Yufutsu oil and gas field and the details of impairment loss】
・ Started production since February 1996
Cummurative production : 2,788 thousand kl of crude oil, 4.87 billion m3 of natural gas
・ JAPEX has looked into production trends at Yufutsu oil and gas field and has assessed its production
capacity. JAPEX found that the quantity of water brought forth with oil gas from the wells significantly
exceeded its forecast in the winter of the fiscal year 2012. Following the finding, JAPEX had measured
the bottom hole pressure and etc. since June 2012 and reassessed the production capacity.
・ As a result, JAPEX posted an impairment loss in extraordinary loss for business assets of Yufutsu oil
and gas field【Outlook for Yufutsu oil and gas field and natural gas supply in Hokkaido】
・ JAPEX will maintain and expand the supply of oil and natural gas in Hokkaido by continuing with thelong-term, efficient operation of Yufutsu oil and gas field, promoting exploration and development in
the surrounding areas.
・ In addition to the supply of natural gas produced from Yufutsu oil and gas field, JAPEX has alreadycompleted and is now operating its natural gas supply system which is composed of the Yufutsu LNG
Receiving Terminal and its domestic vessles. Meanwhile, Hokkaido Gas Co.,Ltd. will start the operationof the Ishikari LNG plant in December 2012. Thus the stable supply of natural gas in Hokkaido will not
be disrupted due to the said revised production forecast downward.

7

After the decline in Yufutsu oil and gas field production－ a reinforcement of domestic business
To respond to the decline in the production of the Yufutsu oil and gas field and the associated fall in
earnings, the Company will take the following steps aimed at reinforcement and increasing the valueof its domestic business.

3. Increasing natural gas sales
and securing stable supply

1. Reducing operating costs
Optimizing the operation structure to respond to the decline
in Yufutsu production  Reduce operating costs

Target supply stability and greater
competitiveness in domestic natural gas
business• From FY2014
Scheduled to reduce the current fivetrain gas processing operation with athree-train operation.
• Will further pursue optimization

Use Yufutsu LNG Receiving Terminal
and domestic LNG vessels to cultivate
new natural gas demand in the central
and southern Hokkaido region.

2. Pursue exploration anddevelopment potential
in Hokkaido• Plan construction of a new LNG
receiving terminal on the Pacific side
• Promote upstream and middle-stream
overseas LNG project to secure LNG
with competitiveness.

Aiming for continued long-term operations of the
Yufutsu oil and gas field and the effective use ofexisting Yufutsu infrastructure, pursue explorationand development potential in Hokkaido.
• Pursue the possibility of Yufutsu shallow
crude oil formation. 
Drilling Akebono (T1) A5 extention well tostart from January, 2013.
• Assess the potential of Akeno and others at
earliest.

Use existing pipelines and otherinfrastructure to cultivate new natural
gas demand in the Greater Sendai Area

8

Pursue Exploration and Development Potential in Hokkaido
Consider moving to the development phase for Yufutsu shallow crude oil formation as
well as maximizing the exploration and development potential of its surrounding areas,
including Akeno, which was discovered in the previous fiscal year.
Basic Principles, etc.

Pursue possibility of development in
Yufutsu shallow crude oil formation 
Akebono (T1) A5 extention well to be
drilled in January, 2013

Assess potential of Akeno and othersaround Yufutsu at earliest

Akebono(T1) (schedule)

Numanohata (T1)
Higashi SK-3DH

Aiming for exploration of Yufutsu shallow crude oil formation(Takinoue Formation) in FY2013, drilling is planned for two wells:- Numanohata (T1) Higashi SK-3DH extention well and- Akebono (T1) A5 extention well
Based on the drilling results for Numanohata (T1) Higashi SK-3DH
extention well (crude oil production test succeeded) and Akebono(T1) A5 extention well to be drilled from January 2013, pursue thepossibility of development and production from Yufutsu shallow crude
oil formation.
Assess potential of surrounding areas, including Akeno, at earliest
and pursue the possibility of contributing to Yufutsu oil and gas field
production.
- Akeno SK-1D exploration well drilled from August, 2011.
- Its production test conducted in January 2012 and succeeded in
crude oil and gas production.

[Reference] Official press release Aug. 3, 2012, Successful Production of
Crude Oil from Extension Well in Hokkaido
http://www.japex.co.jp/newsrelease/pdf/20120803_Hokkaido.pdf

9Increasing Sales of Natural Gas and Securing of Stable Supply
We will aim to secure stable supply with the use of Yufutsu LNG Receiving Terminal and domestic
LNG vessels, while moving forward with the study of a new LNG receiving terminal on the Pacific side
to enable competitive material procurement and increased natural gas sales through upstream andmiddle-stream LNG projects.
With increased sales of natural gas coming through the new
LNG receiving terminal on the Pacific side, offset the decline in
Yufutsu gas production and sales, and aim to increase value
over the long term.

We will focus LNG upstream and middle-stream
projects on existing core areas.

Central and South
Hokkaido Region
Establish an organic LNG supply
system using domestic vessels andYufutsu LNG Receiving Terminal.

Greater Sendai RegionNew
LNG receiving
terminal on
the Pacificside

Natural gas sales quantity(10 thousand tons)

Supply security effect expected
through the coupling with theCompany’s exsisting infrastructure.

Asia/Oceania Area

Outlook of LNG procurement quantity
150
100(Including Vladivostok LNG
and unconventional source
LNG)

North America Area
(including nconventionalsource LNG)

LNG procurement quantity expected to
double in the next ten years or so
To respond to increased LNG procurement quantity
accompanying the rise in sales, etc., construction of a
new LNG receiving terminal on the Pacific side will beplanned to increase supply security.

500FY2013

FY202310

Domestic exploration for FY2013 Result for 1H & Plan for 2H●Extention well : 4 wells■Seismic survey : 2 sites
Akebono（T1) A5●Extention wells drilling schedule

Numanohata(T1) East SK-3DH

FY2013
Total
Depth

1Q
4

Numanohata(T1)East SK-3DH

2,275mAkebono(T1) A5

1,700mKatakai SK-29D

4,900mKatakai SK-29D-1

Katakai R4

5

6

7

2Q

3Q

4Q

8

9 10 11 12 1

2

3
Succeeded

Oga 2D
Succeeded

4,940m5,395mContinued(Actual line length: 48km)

Southern Mt. Chokai 2D(Planned line length: 21km)

Katakai SK-29D main well
Katakai SK-29D-1 branch well

Katakai R4

11

Business Overview

Overseas business : Basic strategy
Oil sands development(production & preparation for development)

Sakhalin 1 Project(production)

CanadaLondon rep.office

Sakhalin

Iraq : Garraf oil field(development)

Middle East

Houston rep.office

North Africa

Japex (U.S.)Corp.
(production)

Beijing rep.officeDubai rep.officeSoutheast Asia

Jakarta rep.office-Kangean Block (production & development)-Block A Aceh (preparation for development)-Buton (exploration)-Universe Gas & Oil (production)-Japan CBM (exploration)

Legend5 Strategic regions
Blocks in which our consolidated subsidiaries,
equity-method affiliates, etc. hold interest.
5 overseas representative offices

12Business Overview

Current status of overseas business ① Canada oil sands
Project company
Operator

Canada Oil Sands Co., Ltd. (CANOS)■ Areas in which JACOS holds interest in oil sands leases(86.64% owned by JAPEX )Japan Canada Oil Sands Ltd. (JACOS)(Local subsidiary, wholly owned by CANOS)

BlockInterest

Hangingstone 3.75 section-Producing around 7,000 bbl/d-Cumulative production of 26 million bbl(as of end-December, 2011)

Expansion project of undeveloped part ofHangingstone area
-Additional production of 30,000 bbl/dat the maximum

100%

75%

Schedule
Apr. 2010

Applied development approvalStart FEED

Winter of2012 to 2013
1st Half of2016

Make FID after acquiring development approvalStart construction■ Contingent resources of undeveloped oil sands areas
held by JACOS : 1,717 million bbl (as of end-December 2008)■ Areas where oil sand resources were evaluated:
The Hangingstone area, the Chard area, the Corner area and theThornbury area were evaluated.

Plan to commence production

13

Current status of overseas business ② Iraq
Garraf development project

Business Overview

PETRONAS

JAPEX

North Oil
Company(NOC)

Contractors(Operator)

South Oil Company (SOC)

Cost share interest

60%

40％

-

20 years（may be extended for maximum 5 years）

Revenue interest

45％

30％

25％

Contract Type

Development and Production Service Contract

Counterparty
Contract term

2010
2011

2013
|

The contract effect on Feb.10, 2010
Drilling campaign commenced
in June 2011

Up to 60,000 bbl/d
after commercial production
Increase production gradually

2016
2017

Achieve plateau production target of

230,000 bbl/d

Garraf■ Expected cumulative production during
the contract term : around 1.3 billion bbl

14

Business Overview

Current status of overseas business ③ Sakhalin 1 Project
Sakhalin 1 Consortium

Interest

Exxon Neftegas Ltd.

30%

Sakhalin Oil and Gas Development Co., Ltd. (SODECO)

30%

OdoptuMinister of Economy, Trade and Industry : 50.00%
JAPEX : 14.46%

ITOCHU Corp. : 14.46%

Marubeni Corp. : 11.68%

INPEX : 5.74%

ITOCHU Oil Exploration Co., Ltd. : 3.66%

ONGC

20%

SMNG-Shelf

11.5%

Rosneft - Astra

8.5%

Oct. 2005

Arkutun-Dagi

Chayvo oil and gas field

Commenced production of crude oil

Oct. 2006

Commenced exports of Sokol crude

Feb. 2007

Achieved peak gross production target (250,000 bbl/d)Jan. 2008

Achieved cumulative production of 100 million bbl

Sep. 20102014

Odoptu oil and gas field

ChayvoCommenced production of crude oil

Arkutun-Dagi oil and gas field
Expected production of crude oil

15

Business Overview

Current status of overseas business ④ Indonesia: Kangean Block
Jakarta

Project
company

SurabayaJava Island

Kangean Energy Indonesia Ltd. (KEI)
and two other companies.
(Equity-method affiliates)

Pagerungan Utara oil field(productionsuspended)

West Kangean gas field (Exploration)
Kangean Island

Pagerungan gas field (production)
East Java Pipeline

SepanｊSepanｊang Island oil field
To Surabaya(production suspended)

TSB gas field (Phase 1: production/
Phase 2: development)

Block

Kangean Block (offshore East Java）

Interest

25%

Operator

KEI■ Current gross production : Crude oil equivalent of around 50,000 boe/d■ TSB gas field : Phase 1(Terang): Commenced production in end-May 2012 with max. production of
300 million cf/d (around 50,000 bbl/d in crude oil equivalent).
Phase 2(Sirasun & Batur): To be developed

16

Business Overview

Current status of overseas business ⑤ Indonesia: Block A Aceh
Project
company

Japex Block A Ltd.

Interest

16.67%
Block A Aceh

Block
OperatorGrossproduction

2011
2012
2015

Block A Aceh

(Northern Sumatra)

Medco
Around 100 million cf/d(around 20,000 bbl/d incrude oil equivalent ）Jakarta

Effect extension PSC (Sep.) and commence FEED
Spud-in of wildcat well (Nov.)

Commencement of production from 3 gas fields ;Alur Rambong, Alur Siwah & Julu Rayeu

17Consolidated financial results
for the six months ended September 30, 2012
Executive Vice President

Hiroshi Sato18

1H Result

Details of Imparment Loss for Yufutsu oil & gas field production facilities
billion60

Sign of imparment loss
Found the production capacity declined by assessment of the
Yufutsu oil & gas field

Cash flow calculation and its precondition of
production volume
Suppose the production capacity will decrease considerably in
FY2013 and will decline gradually afterwards

29（※undeveloped areas including Akeno are excluded above）

net
impairment loss
impairment loss

3730

Preconditions for calculating cash flows□ Crude oil price: US$100/bbls
Foreign exchange rate: ¥80/US$□ Reduction rate to the present value: 10％

tax effectResults of cash flow calculation□ Future cash flow from Yufutsu oil & gas field will keep “plus”
but will be below the present book value□ Posting a ¥37 billion impairment loss in extraordinaryloss□ Impairment loss reflect a decrease in income taxes due tothe recording of deffered tax assets

19Book value
beforeImpairment loss

Book value
after
Impairment loss

1H Result

Actual financial results for 1H FY2012 (Summary)[ Billion ￥]Net Sales
Operating income
Ordinary income

FY12
1H (a)

FY13
Initialestimate(Aug. ‘12)
(e)

(a)

% change(vs Initial
estimate)

104.5

106.2

105.9

-0%

6.2

4.9

1.7

-64%

7.8

5.1

3.0

Billion ￥Billion ￥

1H

110

105.9

104.5

Net Sales (left axis)

100
90

-40%

15

105.9

10

7.8

5

6.3

6.2

1.7

80

3.0

4.6

1.7

3.0

6.3

6.1

(24.4)

112.38115.47116.1670-5

Exchange rate
Yen/USD

81.07

80.74

80.35

60

-10

Bitumen price
CAD/bbl

45.70

52.74

52.02

50

-15

Exchange rate
Yen/CAD

83.38

76.77

76.77

40

-20

Net income
JCC price
USD/bbl－-24.4

Main points of difference with initial estimate :□ Operating income - ¥ 3.0 billion
Net Sales
Exploration expenses / SG&A expenses□ Ordinary income□ Net income
Impairment loss30

- ¥ 3.3billion (-12%)+¥ 0.2billion- ¥ 2.0billion （-40%）

Equity in earnings-25
FY12 (a)FY13 (a)beforeimpairment loss

Operating income (right axis)+¥ 1.1billion

Ordinary income (right axis)
Net income (right axis)- ¥ 30.5billion （－）-¥37 billion

020

FY13 (a)1H Result

Actual sales of natural gas in 1H FY2013 (vs FY2012)
Sales volume : Million m3
Net sales : Million ￥Natural gas:
Of which,
Domestically produced gas:

FY2012FY2013change1H (a)

1H (a)

1H

Sales volume

million M3

742

685

(56)

Net sales

million ￥31,17030,054(1,115)

Sales volume

million M3

522

498

(24)

- Decrease in demand forindustrial users-Rise in sales prices

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.

Natural gas

Million M3(supplied by gas pipeline )

800
700

Sales volume （total）

742

600
500

522

400

685

498

300

Of which, domestically produced gas

Sales volume decreased by ¥56 million M3 (-7%) vs FY11
-Decrease in demand for industrial users

Net sales decreased by ¥1.1 billion (-3%) vs FY11
-Decrease in demand for industrial users-Rise in sales prices

200
100
FY12 (a)(a)

FY13 (a)(a)

21

1H Result

Actual sales of crude oil in 1H FY2013
FY2012
1H(a)FY20131H(a)changeSales volume

896

920

24

Net sales

46,64946,463(186)

Domestically produced
crude oil:

Sales volume

239

240

0

Net sales

13,925

14,291

365

Overseas subsidiary
crude oil:

Sales volume

1

1

(0)

Net sales

84

61

(22)

Sales volume

175

187

12

Net sales

4,207

4,708

501

Sales volume : Thousand KL
Net sales : Million ￥Crude oil:

Increase in purchased crude oil.

Breakdown of equity oil

Bitumen:-Rise in crude oil prices-Decrease in sales volume-Rise in bitumen price

Oil price and Exchange rate assumptions
JCC price

USD/bbl112.38116.16

3.78

Exchange rate

Yen/USD

81.07

80.35

(0.72)

Bitumen price

CAD/bbl

45.70

52.02

6.32

Exchange rate

Yen/CAD

83.38

76.77

(6.61)

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex (U.S.) Corp., anoverseas consolidated subsidiary.

22

1H Result

Actual financial results for 1H FY2013 (vs FY2012)≪Causes of increase(+) or decrease(-) ≫[ Million ￥]FY2013
1H (a)FY20131H(a)Gross profit

beforeimpairment
loss

impairment
loss

total

changeNet sales

104,596

105,958－

105,958

1,362

Gross profit

25,33823,638－23,638(1,700)Exploration
expenses

4,043

7,316

－

7,316

3,272

SG&A expenses

15,075

14,542－

14,542(532)

Operating income

6,219

1,778

－

1,778

(4,441)

1,668

1,241

42

1,284

(384)

Ordinary income

7,887

3,020

42

3,062

(4,825)Extraordinary
income (losses)

(42)

2,258

(37,031)(34,773)(34,730)

Income taxes

1,277

118

(7,890)(7,772)(9,049)

235

495

－

495

259

6,333

4,665

(29,098)(24,433)(30,766)

Net income-¥2.8 billion- ¥1.8 billion+ ¥2.4 billion+ ¥0.7 billion

Exploration expenses
Domestic exploration- ¥2.2 billion

Overseas exploration- ¥1.0 billion

Non-operating income (expenses)

Non-operating
income(expenses)

Minority interests
in incomeDomestic crude oil and natural gas
LNG substitution expense
Trasnportation fee of natural gas
Overseas consolidated subsidiaries

23

Dividends income-¥0.5 billion

Extraordinary income (losses)
Gain on transfer of mining rights + ¥2.4 billion
Impairment loss for the business assets for
production operation of Yufutsu oil & gas field- ¥37 billion

Revised full year forcasts
for the fiscal year ending March 31, 2013
Executive Vice President

Hiroshi Sato

24

Revised Full Year Forecast

Revised estimates for FY2013 (Summary)Billion ￥FY2013 (e)[ Billion ￥]Initialestimate

Revisedestimate%changechange(May11 ‘12)

(Oct.26 ‘12)

214.7

222.2

7.5

4%

Operating income

10.0

10.3

0.3

3%

Ordinary income

16.8

18.9

2.0

12%

Net income

16.5(11.6)(28.2)－Net Sales

100.00112.08

12.08

Exchange rate Yen/USD

80.00

80.19

0.19

Bitumen price CAD/bbl

52.91

48.76

(4.15)

Exchange rate Yen/CAD

80.00

80.00

-

JCC price

USD/bbl

JCC price
USD/bbl
Bitumen price
CAD/bbl1Q (a)

2Q (a)

3Q (e)

4Q (e)

124.11106.79115.00100.00

54.22

49.57

45.29

240.0
230.0
220.0
210.0
200.0
190.0
180.0
170.0
160.0
150.0
140.0
130.0
120.0
110.0
100.0
90.0
80.0

Billion ￥Net Sales (left axis)

214.7

222.2

20
18.9

16.8 16.5

16.4

15
15.7

10

10.3

10.0
7.9

5
0
-5

Operating income (right axis)
Ordinary income (right axis)
Net income (right axis)
FY13(e)Initialestimate

Main points of revised estimate : causes of increase(+) or decrease(-)<Cause of increase> - Rise in sales price - Increase in dividend income<Cause of decrease>- Downward revision of the production and sales plan for natural gas- Impairment loss for the business assets for production operation of Yufutsu oil & gas field

25

222.2

25

FY13(e)Revisedestimate(Oct.26 ‘12)
BeforeImpairment
loss

-11.6

FY13(e)Revisedestimate(Oct.26 ‘12)
after
Impairment
loss

-10
-15

Revised Full Year Forecast

Revised estimated natural gas sales in FY2013 (vs Initial estimate)
Initial estimate(May11 ‘12)

Revised estimate(Oct.26 ‘12)

1H (e)

Full (e)1H (a)

Sales volume

698

1,501

685

Net sales

31,38567,225

Sales volume

519

1,072

Sales volume : Million M3
Net sales : Million ￥Natural gas :Of which,
Domestically produced gas :Full (e)change
1H

Full

1,466

(12)

(35)

30,054

68,406(1,330)

1,181

498

1,024

(21)

(48)

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Million M3

Sales volume （total）

1,600
1,400

1,501

1,466

Sales volume decreased by 35 million M3 (-2%) vs initial estimate.
-Downward revision of the production and sales plan for natural gas

1,200
1,000

1,072

800

Of which, domestically produced gas

1,024

Net sales increased by ¥ 1.1 billion (+2%) vs initial estimate.

600<Cause of decrease>-Downward revision of the production and sales plan for natural gas

400<Cause of increase >-Rise in sales prices

200
Initial estimate

Revisedestimate

26

Revised Full Year Forecast

Revised estimated crude oil sales in FY2013 (vs Initial estimate)
Initial estimate(May11 ‘12)

Revised estimate(Oct.26 ‘12)

1H (e)

Full (e)1H (a)

Sales volume

804

1,764

920

1,689

+116

(75)

Net sales

37,57781,604

46,46383,473

8,886

1,869

Domestically produced
crude oil :Sales volume

251

489

240

452

(10)

(37)

Net sales

12,92025,146

14,291

25,902

1,371

756

Overseas subsidiary
crude oil :Sales volume

1

2

1

5

1

3

Net sales

48

91

61

271

14

180

Sales volume

173

380

187

362

14

(18)

Net sales

4,705

10,103

4,708

8,917

3

(1,187)

Sales volume : Thousand KL
Net sales : Million ￥Crude oil :changeFull (e)1H

Full

Breakdown of equity oil

Bitumen :Oil price and Exchange rate assumptions
JCC price

USD/bbl

100.00100.00116.16112.08

16.16

12.08

Exchange rate

Yen/USD

80.00

80.00

80.35

80.19

0.35

0.19

Bitumen price

CAD/bbl

54.12

52.91

52.02

48.76

(2.10)(4.15)

Exchange rate

Yen/CAD

80.00

80.00

76.77

80.00

(3.23)-

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex (U.S.) Corp.,
an overseas consolidated subsidiary.

27

Revised Full Year Forecast

Revised estimates for FY2013 (vs Initial estimate)≪Causes of increase(+) or decrease(-) ≫[ Million ￥]FY2013(e)

FY2013(e)Revised estimate (Oct.26 ‘12)

Gross profit

Initialestimate(May11‘12)

beforeimpairment
loss

Net sales

214,653

222,228-

222,228

7,575

Gross profit

54,86553,1602,235

55,395530

Exploration
expenses

13,896

13,469-13,469(427)

SG&A expenses

30,966

31,460162

31,622656

Operating income

10,003

7,907

2,397

10,304301

Non-operating
income(expenses)

6,816

8,512

39

8,551

1,735

Ordinary income

16,81916,4192,436

18,855

2,036

Extraordinary
income (losses)

2,378

2,281

(37,031)(34,750)(37,128)

Income taxes

1,969

2,224

(7,216)(4,992)(6,961)

702

727

-

727

25

16,526

15,749(27,380)(11,630)(28,156)

Minority interests
in incomeNet income

impairment
loss

total

28

changeDomestic crude oil and natural gas
LNG substitution expense
Trasnportation fee of natural gas
Overseas consolidated subsidiaries+0.4 billion- ¥0.5 billion+ ¥0.8 billion- ¥0.4 billion

Exploration expenses
Domestic exploration+ ¥0.9 billion

Overseas exploration- ¥0.5 billion

Non-operating income (expenses)
Dividends income+¥1.8 billion

Extraordinary income (losses)
Impairment loss for the business assets for
production operation of Yufutsu oil & gas field- ¥37 billion

Revised Full Year Forecast

Revised estimated natural gas sales in FY2013 (vs FY2012)
FY2012FY2013Revised estimate (Oct.26 ‘12)changeFull (a)1H (a)

2H (e)

Full (e)(vs FY2012)

Sales volume

1,730

685

781

1,466

(264)

Net sales

74,95730,05438,352

68,406(6,552)

Sales volume

1,194

498

526

1,024

(171)

Sales volume : Million M3
Net sales : Million ￥Natural gas:
Of which,
Domestically produced gas:

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Million M3

Sales volume （total）

2,000

Of which, domestically produced gas

1,800
1,600

1,730

1,400

1,466

1,200
1,000

1,194
1,024

800
600
400
200
-

Sales volume decreased by 264 million M3 (-15%) vs FY2012.
-Downward revision of the production and sales plan for natural gas-Decrease in demand for industrial users

FY12(a)Net sales decreased by ¥ 6.5 billion (-9%) vs FY2012.
<Cause of decrease >-Downward revision of the production and sales plan for natural gas<Cause of increase >-Rise in sales prices

FY13(e)29

Revised Full Year Forecast

Revised estimated crude oil sales in FY2013 (vs FY2012)
FY12

FY13

Full (a)1H (a)

2H (e)

Full (e)change(vs FY12)

Sales volume

1,778

920

769

1,689

(90)

Net sales

89,891

46,46337,01083,473(6,419)Domestically produced
crude oil:

Sales volume

529

240

211

452

(77)

Net sales

30,351

14,291

11,611

25,902(4,449)Overseas subsidiary
crude oil:

Sales volume

2

1

4

5

3

Net sales

128

61

210

271

143

Sales volume

382

187

174

362

(21)

Net sales

9,137

4,708

4,208

8,917

(221)

Sales volume : Thousand KL
Net sales : Million ￥Crude oil:

Revised estimate (Oct.26 ‘12)

Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

USD/bbl112.43116.16107.48112.08(0.35)

Exchange rate

Yen/USD

78.93

80.35

80.00

80.19

1.26

Bitumen price

CAD/bbl

49.81

52.02

45.29

48.76

(1.05)

Exchange rate

Yen/CAD

76.22

76.77

80.00

80.00

3.78

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex (U.S.) Corp.,
an overseas consolidated subsidiary.

30

Revised Full Year Forecast

Revised estimates for FY2013 (vs FY2012)≪Causes of increase(+) or decrease(-) ≫[ Million ￥]FY2012(a)

FY2013 (e)Revised estimate (Oct.26 ‘12)
beforeimpairment
loss

impairment
loss

Gross profit

totalchangeNet sales

230,638

222,228-

222,228(8,410)Gross profit

56,27853,1602,235

55,395(883)

Exploration
expenses

7,805

13,469-13,4695,663

SG&A expenses

33,426

31,460162

31,622(1,805)

Operating income

15,045

7,907

2,397

10,304(4,742)Non-operating
income(expenses)

7,114

8,512

39

8,551

1,437

Ordinary income

22,15916,4192,436

18,855(3,305)Extraordinary
income (losses)

311

2,281

(37,031)(34,750)(35,061)

Income taxes

4,746

2,224

(7,216)(4,992)(9,739)

696

727

-

727

30

17,027

15,749(27,380)(11,630)(28,657)

Minority interests
in incomeNet income

31

Domestic crude oil and natural gas
LNG substitution expense
Trasnportation fee of natural gas
Overseas consolidated subsidiaries-¥3.5 billion- ¥0.3 billion+ ¥3.0 billion- ¥0.1 billion

Exploration expenses
Domestic exploration- ¥3.3 billion

Overseas exploration- ¥2.3 billion

Non-operating income (expenses)
Dividends income+¥1.3 billion

Extraordinary income (losses)
Gain on transfer of mining rights + ¥2.6 billion
Impairment loss for the business assets for
production operation of Yufutsu oil & gas field- ¥37 billion

Revised Full Year Forecast

Crude oil price and exchange rate assumptions and impact on profits [3Q-4Q]
FY2012FY2013

1H (a)

2H (a)

Full (a)1Q (a)

2Q (a)

3Q (e)

4Q (e)

1-4Q (e)USD/bbl112.38112.48112.43124.11106.79115.00100.00112.08Exchange rate

Yen / USD

81.07

77.17

78.93

81.26

79.11

Bitumen price

CAD/bbl

45.70

53.30

49.81

54.22

49.57

46.22

44.64

48.76

Exchange rate

Yen /CAD

83.38

76.22

76.22

82.52

76.77

79.14

80.00

80.00

JCC price

Assumption[3Q-4Q]

80.00

80.19

JCC price

Exchange rate

Bitumen price [4Q]

USD 107.48 /bbl

Yen 80 /USD

CAD 44.64 /bbl
（ Yen 80 /CAD ）A weakening in the yen to

CAD 1/bbl increase in

Impact on Profits[3Q-4Q]

USD 1 /bbl increase in

Operating income

130 million Yen

270 million Yen( 9.2 billiion CAD )70 million Yen

Net income

90 million Yen

260 million Yen(8.1 billion CAD )60 million Yen

Note:crude oil prices would pushprofits up by...

Yen 5/USD would pushprofits up by…

bitumen prices would pushprofits up by…

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

32