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

Consolidated financial results
for the six months ended September 30, 2011
＜Supplementary material＞
November 4 , 2011

Japan Petroleum Exploration Co., Ltd.
copyright©2011 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.
TEL: +81-3-6268-7111

2

Business Overview

Trends in Crude oil prices and Foreign exchange rates

$120
$110
$100

$ denominated price $/bbl (left axis)$-Denominated JCC Price $/bbl
Exchange rate ¥/$(left axis)(right axis)
Exchange rate ¥/$(right axis)

¥115
¥110
¥105
¥100

$90

¥95

$80

¥90

$70

¥85

$60

¥80

$50

¥75

$40

¥70
2008-072008-08
2008-09
2008-10
2008-11
2008-12
2009-01
2009-022009-032009-04
2009-05
2009-06
2009-072009-08
2009-09
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[Price]$-Denominated$denominated$/bbl$/bbl[Price]

$130

¥120

Japan Crude Cocktail (JCC) Price in the first 10 days of July 2011
on a prompt report basis : USD 110.65 / bbl

Yen76.59 / USD

3[Exchange rate] ¥/$$140

Revised estimates for FY2012 (Highlight)
Initialestimate

Revisedestimate

199.6

223.4

229.0

5.5

2%

Operating income

13.8

11.7

8.3

(3.3)

(29%)

Ordinary income

17.1

15.6

12.9(2.6)(17%)

Net income

10.0

11.5

10.1

(1.3)

(12%)

82.69

90.00

105.66

15.66

Exchange rate
Yen/USD

86.24

85.00

80.52

(4.48)

Bitumen price
CAD/bbl

48.32

47.82

46.25

(1.57)

Exchange rate
Yen/CAD

81.47

85.00

80.00

(5.00)

1Q (a)

2Q (a)

3Q (e)

4Q (e)

110.80112.38100.00

40.91

51.14

46.71

[ Billion ￥]Net Sales

JCC price
USD/bbl

JCC price
USD/bbl
Bitumen price
CAD/bbl(May ‘11)(Nov. ‘11)

Billion ￥Billion ￥FY12 (e)FY11(a)% change(vs Initialestimate)changeNet Sales (left axis)

FY12(e)Main points of revised estimate :□ Increased Profit*Increase in sales price of crude oil*Increase of dividends income□ Decreased Profit*Downward revision of the production and sales plans for natural gas and crude oil*Investment loss on equity method

4FY12(e)Operating income (right axis)
Ordinary income (right axis)
Net income (right axis)

Actual results for 1H FY2012 (Summary)
FY12

FY11
1H (a)

Initialestimate

92.3

101.2

104.53%Operating income

3.8

5.7

6.2

9%

Ordinary income

4.9

7.3

7.87%

Net income

1.8

5.4

6.3

16%

78.95

90.00

112.38Exchange rate
Yen/USD

90.71

85.00

81.07

Bitumen price
CAD/bbl

52.98

45.48

45.70

Exchange rate
Yen/CAD

83.76

85.00

83.38

[ Billion ￥]Net Sales

JCC price
USD/bbl(a)(May ‘11)(e)Billion ￥Billion ￥1H% change(vs Initialestimate)

Net Sales (left axis)

Main points of difference with initial estimate :□ Operating income + ¥ 0.5 billion
Net Sales- ¥ 0.4billion (-2%)

Exploration expenses / SG&A expenses +¥ 0.9billion□ Ordinary income
Equity in earnings□ Net incomeIncome taxes

Operating income (right axis)- ¥ 0.5billion （+7%）

Ordinary income (right axis)-¥ 0.2billion

Net income (right axis)- ¥ 0.8billion （+16%）+¥0.2 billion

5Actual sales of Natural gas in 1H FY2012
FY111H(a)FY121H(a)changeSales volume696

742

45

Net sales

27,03931,1704,130

Sales volume529

522

(7)

Sales volume : Million M3
Net sales : Million ￥Natural gas :Of which,
Domestically produced gas :-Increase in demand for industrial
users and utility gas customers.
-Rise in sales prices.

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

Sales volume （total）
Of which, domestically produced gas

Sales volume increased by 45 million M3 (+7%) vs FY11.
-Increase in demand for industrial users and commercial-scale utility gas
customers.

Net sales increased by ¥ 4.1 billion (+15%) vs FY11.
<Cause of increase >-Increase in demand. (+45 million M3 (+7%))-Rise in sales prices.

6Actual sales of Crude oil in 1H FY2012
FY111H(a)FY121H(a)changeSales volume946

896(50)Net sales38,242

46,6498,406

Domestically produced
crude oil:

Sales volume

246

239

(6)

Net sales

11,083

13,9252,841

Overseas subsidiary
crude oil:

Sales volume3

1(1)Net sales

117

84(33)

Sales volume197

175(21)

Net sales

5,512

4,207

(1,304)

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

-Decrease in purchased crude oil.
-Rise in crude oil price

Breakdown of equity oil

Bitumen:-Rise in crude oil prices-Decrease in strengthening ofthe yen-Rise in loyalty rate

Oil price and Exchange rate assumptions
JCC price

USD/bbl78.95

112.38

33.43

Exchange rate

Yen/USD

90.71

81.07

(9.64)

Bitumen price

CAD/bbl

52.98

45.70

(7.28)

Exchange rate

Yen/CAD

83.76

83.38

(0.38)

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.

7Actual results for 1H FY2012 (vs FY2011)[ Million ￥]FY111H(a)FY121H(a)≪Causes of increase(+) or decrease(-) ≫change

Net sales

92,369104,596

12,226Gross profit

24,14025,338

1,197

Exploration expenses

6,023

4,043

(1,979)

SG&A expenses

14,272

15,075802

Operating income

3,845

6,219

2,373

Non-operating income(expenses)

1,083

1,668

584

Ordinary income

4,929

7,887

2,958

Extraordinary income(losses)(2,414)

(42)

2,372

Income taxes

243

1,277

1,033

Minority interests in income

374

235

(139)

1,896

6,333

4,437

Net income

8

Gross profit
Domestic crude oil and natural gas + ¥4.2 billion
Trasnportation fee of natural gas - ¥1.8 billion
Overseas consolidated subsidiaries - ¥1.3 billion

Exploration expenses
Domestic exploration+ ¥2.0 billion

Non-operating income (expenses)
Equity in earnings (losses) of affiliates - ¥0.2 billion
Gain on redemption of investment securities +¥0.5 billion

Extraordinary income (losses)
Loss on adjustment for changes of accounting standard
for asset retirement obligations+¥2.3 billion

Revised estimates for FY2012 (Summary)[ Billion ￥]Initialestimate

Revisedestimatechange(Nov. ‘11)

(May ‘11)% change

223.4

229.05.52%

Operating income

11.7

8.3(3.3)(29%)

Ordinary income

15.6

12.9(2.6)(17%)

Net income

11.5

10.1(1.3)

(12%)

90.00

105.66

15.66

Exchange rate
Yen/USD

85.00

80.52

(4.48)

Bitumen price
CAD/bbl

47.82

46.25

(1.57)

Exchange rate
Yen/CAD

85.00

80.00

(5.00)Net Sales

JCC price
USD/bbl

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

2Q (a)

110.80112.38Billion ￥Billion ￥FY12 (e)3Q (e)Net Sales (left axis)

4Q (e)

100.00FY12(e)

40.91

51.14

FY12(e)46.71Operating income (right axis)

Main points of revised estimate : causes of increase(+) or decrease(-)<Cause of increase>- Rise in Sales price - Increase in dividend income<Cause of decrease>- Revise sales plan
- Equity in losses of affiliates

9

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

Revised estimated Natural gas sales in FY2012 (vs Initial estimate)
Initial estimate(May ‘11)

Revised estimate(Nov. ‘11)

1H (e)

Full (e)1H (a)

Sales volume

754

1,714

742

Net sales

32,49373,585

Sales volume

545

1,210

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

Full

1,690

(12)

(24)

31,17073,266(1323)

(318)

522

1,157(22)(54)

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

Sales volume （total）
Of which, domestically produced gas

Sales volume decreased by 24 million M3 (1%) vs initial estimate.
-Downward revision of the production and sales plan for natural gas
Net sales decreased by ¥ 0.3 billion (0%) vs initial estimate.
<Cause of increase >-Rise in sales prices<Cause of decrease>-Downward revision of the production and sales plan for natural gas

10Revised estimated Crude oil sales in FY2012 (vs Initial estimate)
Initial estimate(May ‘11)

Revised estimate(Nov. ‘11)

1H (e)

Full (e)1H (a)

Sales volume

948

1,949

896

1,897

(52)

(52)

Net sales

41,77486,09346,64993,253(4,875)(7,160)

Domestically produced
crude oil :Sales volume

256

554

239

523

(17)

(31)

Net sales

12,52926,97813,92528,573

1,397

1,595

Overseas subsidiary
crude oil :Sales volume

12

1

30

1

Net sales

56102

84

142

28

40

Sales volume

191

404

175

384

(16)

(20)

Net sales

4,645

10,324

4,207

8,931

(438)

(1,393)

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

90.00

90.00

112.38105.66

22.38

15.66

Exchange rate

Yen/USD

85.00

85.00

81.07

80.52

(3.93)(4.48)

Bitumen price

CAD/bbl

45.48

47.82

45.70

46.25

0.22(1.57)

Exchange rate

Yen/CAD

85.00

85.00

83.38

80.00

(1.62)(5.00)

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.

11

Revised estimates for FY2012 (vs Initial estimate)≪Causes of increase(+) or decrease(-) ≫Initialestimate(May ‘11)

Revisedestimate(Nov. ‘11)changeNet sales

223,479

229,031

5,552

Gross profit52,36150,593(1,767)

Exploration expenses

9,446

8,864(582)

Exploration expenses

SG&A expenses

31,15833,3652,206

Domestic exploration
Overseas exploration

Operating income

11,7578,365(3,392)Non-operating income(expenses)

3,877

4,609

731

Ordinary income

15,634

12,974(2,660)Extraordinary income(losses)

(255)

(4)

251

Income taxes

3,245

2328

(917)

607

468

(139)

11,528

10,175(1,353)[ Million ￥]Minority interests in income

Net income

12

Gross profit
Domestic crude oil and natural gas - ¥1.1 billion
Trasnportation fee of natural gas+ ¥0.4 billion
Overseas consolidated subsidiaries - ¥0.8 billion+ ¥0.8 billion- ¥0.2 billion

Non-operating income (expenses)
Dividends income+ ¥1.5 billion
Equity in (earnings) losses of affiliates - ¥1.1billion

Extraordinary income (losses)
Gain on sales of noncurrent assets+ ¥0.2 billion

Revised estimated Natural gas sales in FY2012 (vs FY2011)
FY11

FY12 Revised estimate (Nov. ‘11)

Full (a)1H (a)

2H (e)

Full (e)change(vs FY11)

Sales volume1,533742

948

1,690

136

Net sales

61,09031,170

42,90673,266

12,176

Sales volume1,185522634

1,157(29)

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.

Sales volume （total）

Million M3

Of which, domestically produced gas

Sales volume decreased by 136 million M3 (+9%) vs FY11.
-Recovery in demand for industrial users and commercial-scale utility gas
customers.

Net sales increased by ¥ 12.1 billion (+20%) vs FY11.
<Cause of increase >-Increase in demand. (+ 136 million M3 (+9%))-Rise in sales prices.

FY12(e)13

Revised estimated Crude oil sales in FY2012 (vs FY2011)
FY11

FY12 Revised estimate (Nov. ‘11)

Full (a)1H (a)

2H (e)

Full (e)change(vs FY11)

Sales volume

1,899

896

1,001

1,897

(2)

Net sales

77,62946,64946,604

93,253

15,624

Domestically produced
crude oil:

Sales volume

547

239

284

523

(25)

Net sales

23,777

13,925

14,64828,573

2,795

Overseas subsidiary
crude oil:

Sales volume5113(2)

Net sales

187

8458142(45)Sales volume409

175

209

384

(26)

Net sales

10,141

4,207

4,724

8,931

(1,210)

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

Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

USD/bbl82.69

112.38100.00105.66

22.97

Exchange rate

Yen/USD

86.24

81.07

80.00

80.52

(5.72)

Bitumen price

CAD/bbl

48.32

45.70

46.71

46.25

(2.07)

Exchange rate

Yen/CAD

81.47

83.38

80.00

80.00

(1.47)

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.

14

Revised estimates for FY2012 (vs FY2011)≪Causes of increase(+) or decrease(-) ≫FY2011(a)

FY2012(e)changeGross profit

Net sales

199,651

229,031

29,379Gross profit

54,73250,593(4,139)Domestic crude oil and natural gas +¥1.5 billion
LNG substitution expense - ¥1.9 billion
Trasnportation fee of natural gas - ¥2.3 billion
Overseas consolidated subsidiaries - ¥1.4 billion

Exploration expenses

9,798

8,864(935)

SG&A expenses

31,08433,3652,280

Operating income

13,8498,365(5,485)Non-operating income(expenses)

3,272

4,609

(1,336)

Ordinary income

17,122

12,974(4,148)Extraordinary income(losses)(4,166)

(4)

4,163

Equity in earnings (losses) of affiliates -¥1.2billion
Loss on valuation of securities and Exchange+ ¥1.3 billion

2,161

2,328

167

Extraordinary income (losses)

783

465(316)

Loss on adjustment for changes of accounting
standard for asset retirement obligations

10,01010,175164[ Million ￥]Income taxes
Minority interests in income

Net income

15

Exploration expenses
Domestic exploration
Overseas exploration+ ¥1.6 billion- ¥0.7 billion

Non-operating income (expenses)
Dividends income+¥1.2 billion+ ¥2.3 billion
Extraordinary expense related with Great East
Japan Earthquake+ ¥1.6 billion

3Q-4Q : Oil price and Exchange rate assumptions and impact on profits
FY2011FY2012

1H (a)

2H (a)

Full (a)1Q (a)

2Q (a)

USD/bbl

78.95

85.67

82.69

110.80114.23100.00105.66

Exchange rateYen / USD

90.71

82.95

86.24

82.25

79.73

80.00

80.52

Bitumen price

CAD/bbl

52.98

43.98

48.32

40.91

51.14

50.33

43.05

46.25

Exchange rate

Yen /CAD

83.76

81.47

81.47

85.66

83.38

80.00

80.00

80.00

JCC price

3Q-4Q :
Assumption

Impact on Profits

4Q (e)

Full (e)JCC price

Exchange rate

Bitumen price (4Q)

USD 100 /bbl

Yen 80 /USD

CAD 43.05 /bbl
（ Yen 80 /CAD ）USD 1 /bbl increase in

3Q-4Q :

3Q (e)

crude oil prices would pushprofits up by...

A weakening in the yen toYen 5/USD would pushprofits up by…

CAD 1/bbl increase inbitumen prices would pushprofits up by…

Operating income

200 million Yen

570 million Yen( 650 thousand CAD )52 million Yen

Net income

130 million Yen

440 million Yen(570 thousand CAD )46 million Yen

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

16