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

Presentationof Consolidated Financial Results
for the Six Months Ended September 30, 2014
November 10 , 2014

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 (FY2014, for instance, means 12 months ended March 31, 2014)
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

2

Contents
１．Business Overview
President

Osamu Watanabe

２．Consolidated Financial Results
for the Six Months Ended September 30, 2014
Executive Officer

Michiro Yamashita

３．Revised Full Year Estimates

for the Fiscal Year Ending March 31, 2015
Executive Officer

Michiro Yamashita

3

1.Business Overview
President

Osamu Watanabe

4Trends in Crude Oil Prices and Foreign Exchange Rate
$130

¥125

$120

¥120

$115

¥115

$110

¥110

$105

¥105

$100

¥100

$95

¥95

$90

¥90

$85

¥85

$80
$75

Exchange rate ¥/$(right axis)

¥80

¥75

$70

¥70

Japan Crude Cocktail (JCC) Price in the first 10 days of October 2014
on a prompt report basis : US$ 102.81/bbl JP¥ 108.49/US$
5[foreign exchange rate: JP¥/US$]

crude oil price US$/bbl（left axis）

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
2012-11
2012-122013-012013-022013-032013-04
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[crude oil price:US$/bbl]

$125

¥130

Revised Estimates for FY2015 (Highlight)
FY2014FY2015

Change1H (a)②

InitialEstimate
Full (e)May12’14③

RevisedEstimate
Full (e)Nov.7’14④

1H
（②-①）

Full
（④-③）

157.5

146.8

323.6

324.3

▲10.6

+0.7

24.6

14.3

15.1

33.0

34.6

+0.7

+1.6

Ordinary income

43.8

20.1

24.7

41.4

48.8

+4.5

+7.3

Net income（loss)

29.0

13.5

18.8

27.3

35.3

+5.2

+7.9

US$/bbl110.51100.00110.06100.00101.27+10.06+1.27

Exchange rate Yen/bbl

99.31

100.00102.13100.00103.43

+2.13

+3.43

Bitumen price CA$/bbl

51.67

54.42

58.93

54.15

58.16

+4.51

+4.01

Exchange rate Yen/CA$

98.42

95.00

95.04

95.00

95.00

+0.04

－

InitialEstimate
1H(e)

276.5

Operating income

Billion ￥

Full
(a)

Net sales

JCC price

Revised Estimate
Full (e) Nov.7’14

May12’14①

1Q (a)

2Q (a)

3Q (e)

4Q (e)

JCC price

US$/bbl109.51110.70100.0085.00

Exchange rate

Yen/US$102.27101.96105.00105.006

Domestic exploration: Result for 1H & Plan for 2H● Drilling schedule for FY 2015
1Q

Total
Depth

AkebonoSK-6bH

4

5

2Q
6

7

8

3Q
9

10

4Q

11 12

1

2

3

5,897mFukumezawa
SK-26D/26DH 2,261 m(Horizontal Drilling)

1(Fracturing)■ Geophysical prospecting survey work FY2015
3D seismic
surveyAkebono SK-6bH（5,897m）

3D (63km2) Yurihara
field in Akita Prefecture

Fukumezawa SK-26D/26DH（2,261m）

Yurihara 3D（63km2）

commencementof work(Oct. 2014)

Geophysical Survey

7

Enforcement of Domestic Profit

Tight oil development
in Akita Prefecture

Ayukawa oil & gas field：
April 1, 2014Started commercial production

Akita⇒ striving to obtain knowledge
about the tight formation in
Ayukawa oil & gas field

●

Tokyo

Fukumezawa oil field：
Perform in horizontal well drilling as a part of Japan’s
first demonstration experiment of multistage fracturing
in tight formation.
July 6, 2014
Completed horizontal well drilling work
Late Nov. 2014 Plan to start Fracturing work

⇒ Possibility of increase production
in Fukumezawa oil field

The results of above experiments are expected to contribute greatly toacquisition of knowledge about development of Onnagawa tight oil
formation, distributed widely in Akita Prefecture.

8

Image of demonstration experiment in Fukumezawa oil fieldEnforcement of Domestic Natural Gas Soma LNG terminal■Soma LNG terminal Facilities
1.Applicable law

Gas Business Act

2.Lot area

Site area

3. Storage

Capacity
LNG property

4.Receiving
capacity

LNG ocean- going
LPG domestic vessel

5.Vaporizers

Sending power

6.Shipping facilities

Around 20ha
Initially: PC type 230,000kl one storage(Future will have space of expansion)

Available: Light LNG of receiving

Full set (maximum 210,000m3 class)
Full set (maximum 2,500m3 class)

LPG domestic vessel
Shipping tanker truck

7.0MPa 150t/h(Future will have space of expansion)
maximum 4,800 m3 class
5 Lane,30t/h(Future will have space of expansion)

Image of Soma LNG terminal■Construction Schedule

Supply chain: Canada Pacific NorthWest LNG project –Soma- Customers

2013
Nov.27

Yufutsu LNG receiving terminal

2014-

Final Investment Decision（FID）
Terminal construction
to be commenced

Construction
as of end-Dec. to be completed

Delivered to Japan in 8–9 days

2017
2018
Mar.

Domestic vessels

Serviceto be commenced

Soma LNG terminal

9

Prince Rupert
LNG liquefaction & shipment terminal(Plan)

Overseas Business : Focusing Areas
5. Shale Gas/LNG Project(production of natural gas/planning of LNG plant)
4.Oil sands development (production & development)

3.Sakhalin 1 Project(production & development)

UK North Sea Block(Exploration)

U.K. / Norway

CanadaShale oil

Sakhalin

Middle East

(production & development)

2.Iraq Garraf oil field(production & development)

Southeast Asia
1.Kangean Block (production & development)
Block A Aceh (development & exploration)
Universe Gas & Oil (production)

Overseas forcusing areas
Blocks owned by our consolidated
subsidiaries or equity-method affiliates.

10Current Status of Overseas Business ①

Indonesia: Kangean BlockWest Kangean gas field(Exploration)

Jakarta

Pagerungan Utara oil field（Production suspended）

East Javagas pipeline

Bali Island

Pagerungan gas field(Production)
Sepanｊang Island oil field（Production suspended)

to Surabaya

Project
Companies

Kangean Energy
Indonesia Ltd. (KEI)

TBS gas field （Production-partly）

Sirasun gas field
Terang gas field
South Saubi
Batur gas field+ 2 other equity-method
affiliates

Interest

サウス・チュルカン
２５％ （Operator：
KEI）■ Current gross production : Crude oil equivalent of around 50,000 bbl/d□ TSB gas field(Phase1) Terang ： Commenced production in end-May 2012.
Maximum production 0.3billion cf/d(around 50,000boe/d in crude oil equivalent)(Phase2) Sirasun, Batur : Preparing for development
FPU of Terang Gas field

11

Current status of overseas business ②

Iraq : Garraf oil field
Project
company

Japex Garraf Ltd.

Interest

30％（ cost share 40％ ）Operator ： PETRONAS

Field

Garraf2013

BaghdadProduction

Expected cumulative production :Around 1.3 billion bbl

Garraf oil field
Samawah

2030

Nasiriyah
Basrah■ Time Schedule
2013

Commenced production
August 31 from the Garraf oil field
Average daily production : Around 64,000 bbl/d

2014～
2016

Average daily production(Oct.18 ,2014) :Around 83,000 bbl/dPlan to increase production gradually

2017

Plan to achieve plateau production target of
230,000 bbl/d

Garraf oil has been smoothly shipped from Basrah

12Current status of overseas business ③

Sakhalin 1 Project
Project company

OdoptuSakhalin Oil and
Gas Development Co., Ltd. (SODECO)
Interest

Arkutun-Dagi

Sakhalin 1 Consortium
Exxon
Neftegas Ltd.
30%

JAPEX
JAPEX
15.29%
15.29%

Minister of
Economy,Trade and
OthersIndustry
50.00% Others
34.71%
34.71%SODECO

Ohters40%

Block

SODECO

30%

ChayvoChayvo, Odoptu ： Production（Total production of Crude Oil：Around 130,000 bbl/d*）*Sakhalin 1 project total in 2014 (JAPEX estimates）

Arkutun-Dagi ：Developing toward production of
Crude Oil (Target year : End of 2014)13

Sakhalin 1 Project is steadily development and production of crude oil

Current Status of Overseas Business ④

Canada Oil Sands
Project
company

Canada Oil Sands Co., Ltd. (CANOS)

Block

Hangingstone 3.75 section

Production

100％ interest

Cumulative
production of
31.99 million bbl

Operator : Japan Canada Oil Sands Ltd. (JACOS)

around 6,000 bbl/d(as of end-August,2014)

Expansion project of undeveloped partof Hangingstone area

75％ interest

Development

Additional production of 20,000 bbl/d at the maximum

Appraisal

Considering
futureactivities

Other bitumen leases(include Corner, Chard & Thornbury)

FORT McMURRAY area
Hangingstone
commonly known as“3.75 section” area
（production）

HangingstoneConer JV lease

12％ interest

Calgary

expansion area
(development)

Corner JV lease■Schedule
2012

Dec.： Final Investment Decision (FID)

2013

Feb.： Started construction (early civil work)
Aug.： Commenced drilling of horizontal wells
Sep.: Concluded EPC contracts for major facilities

2014

Aug.： Completed (early civil work),Commenced Construction of Facilities

2016

Plan to commence production

14

Oilsands development
as a pioneer of SAGD method

Current status of Overseas Business ⑤

Canada Shale Gas/LNG Project
Shale Gas development
and Production Project（Up-stream）
Block/
Candidatesite of
LNG plant

North Montney,
British Columbia,
CanadaLNG Project（Middle-stream）

Calgary

Lelu Island,
the Port of Prince
Rupert, B.C.

Prince Rupert（Proposed LNG plant site）

North Montney Area

Interest

10% Interest

10% Equity

Operator

PETRONAS（Includes subsidiaries）

PETRONAS（Includes subsidiaries）

Current
Status

Production and sales of
Natural Gas

Pipeline

LNG
Delivered to Japan

FEED■Project Schedule
26 APR 2013

Conclusion of Contract

End of 2014

Plan to FID of LNG plant2014 ～ 2018

Construction of LNG plant

End of 2018

First LNG Production （12MMtonnes/y)15

Drilling at North Montney

Vancouver Calgary

Environment and Innovative Technology Business
Geothermal Energy
Business

Solar Power Business●●●
Tomakomai

Musadake area
（Shibetsu
Town）mega-solar power station at Japex
Hokkaido district office
Drilling operation ofMusadake area

CCS

Methane Hydrate● Mt. Bandai area

Photo provided by JOGMEC
Photo provided by Japan CCS Co., Ltd.

Drilling of CCS observation well

●Offshore Atsumi and
Shima peninsulas

16World’s first offshore methane hydrate
gas production tests

Timeline of Projects & Finance Plan
After FY2016 Finance
FY2015

Oil sandHE development
Canada LNG

FY2016FY2017FY2018FY2019FY2020◆Commence productionIncrease production gradually

Upstream Gas development

Canada LNG Pre-FID
Liquefied Business◆FID (end of 2014)◆Commence
LNG production















Iraq : Garraf oil field
Operation
expansion

Approval pending

Kangean
TSB phase 2◆Commence productionSoma
LNG receiving terminal◆plateau production to be achieved◆Commence receiving LNG Investment of country・Debt guarantee scheme project finance etc.. Through leverage, I pursue the optimal financing mix

 Required finance total amount (5 years total)of FY2016-2020,200-220 billion yen
 Out of 100 billion yen appropriated our funds
Note1: For funding method and amount, it is our outlook at the present time, there is a possibility to change.
Note2: Required finance total amount 200-220 billion yen, the total of “JAPEX funds”, “ Investment of country etc.” and “Loans” in the table

17

Production Volume and Proved Reserves(*) BOED: Barrels of Oil Equivalent per Day◆Production volume in FY2014 : 48,000 BOED (*)⇒Increased 32% YOY. Main reason was full year production of SODECO and Kangean TSB gas field.

◆Proved reserves at end of FY2014 : 305 million BOE⇒Decreased 1% YOY. Main reason was the increase by the acquisition of interest in Canadian natural gas development,
despite the decline in domestic reserves.

Anticipate to achieve the medium-term targets by ensuring progress in the Canadian natural gas
project, Canada oil sands expansion project and Garraf project of Iraq.

Production volume(BOED)

Proved reserves(Million BOE)

【Target 】

domestic

48,000257
49

70,00040,00038,00036,000FY2011 FY2012 FY2013 FY2014

Medium-term business plan
(FY2012～FY2016）

208
FY2016FY2011overseas
307

305

223
38

160

193

185

147

112

FY2012FY2013

FY2014【 Target】

450

FY2021(target)(target)Medium-term business plan (FY2012～FY2021）* The above production volume and proved reserves are equivalent to the JAPEX Group’s interest .

18

1H Result

2.Consolidated Financial Results
for the Six Months Ended September 30, 2014
Executive Officer

Michiro Yamashita

19

1H Result

Actual Financial Results for 1H FY2015 (Summary)Billion ￥Net Sales
Operating income

FY2014FY20151H (e)

1H (a)(May12 ‘14)

FY2015
1H (a)

120.2

157.5

146.8

11.5

14.3

15.1

Ordinary
income

19.9

20.1

24.7

Net income

15.8

13.5

18.8

changevs Initial
Estimate%▲6%

Billion ￥
175

+38%

35

Net Sales (left axis)

157.5
146.8

150

+5%

+22%

Billion ￥

125

120.2

25

right axis
Operating income

24.7

Ordinary income
Net income

100

20

19.9

JCC price
US$/bbl108.53100.00110.06

Exchange rate
JP¥/US$

97.58

Bitumen price
CA$/bbl

52.22

54.42

58.93

Exchange rate
JP¥/CA$

94.01

95.00

95.04

100.00102.13Main points of difference with initial estimate and FY2015□ Net Sales▲ ¥10.6 billion□ Operating income +¥ 0.7 billion□ Ordinary income+¥ 4.5 billion Equity in losses of affiliates +¥ 3.8 billion□ Net income+¥ 5.2 billion

20

15

15.8
14.3

50

18.8

20.1

75

15.1
13.5

10

11.5

25

0

30

5

FY2014 1H(a)FY2015 1H(e)FY2015 1H(a)01H Result

Actual Sales of Natural Gas in 1H FY2015 (vs FY2014 )Overseas produced gas

Sales volume : Million M3
Net sales : Million ￥Natural gas

Sales
volumeFY2014
1H (a)FY2015
1H (a)

change

614

775

+160

Million M3

Domestically produced gas

600

196
37

Net sales

31,883 37,458+5,575400

Breakdown of natural gas sales

Domestically
produced gas

Overseas
produced gas

SalesvolumeSales
volume

408

37

382

196

▲26 200
408

382

FY14 1H

FY15 1H+159-

Sales volume of “Domestically produced gas” stated herein does not include purchased gas. “Overseas produced gas” stated herein areamounts of Japex (U.S.) Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

21

1H Result

Actual Sales of Crude Oil in 1H FY2015 ( vs FY2014 )Sales volume : Thousand KL
Net sales : Million ￥FY2014FY2015

1H(a)

1H(a)

changeSales volume

877

1,107

+230

Net sales

53,91973,500+19,581

Domestically
produced crude oil:

Sales volume

188

190

+2

Net sales

12,82813,768+940

Overseas subsidiary
crude oil:

Sales volume

8

273

+265

Net sales

478

18,568+18,090

Sales volume

165

152

▲13

Net sales

5,110

5,382

+272

US$/bbl108.53110.06+1.53

Exchange rateJP¥ / US$

97.58

102.13+4.55

Bitumen price

CA$/bbl

52.22

58.93

+6.71

Exchange rateJP¥ / CA$

94.01

95.04

+1.03

Crude oil:

Breakdown of equity oil

Bitumen:

Rise in sales priceCommencement of sales ofcrude oil from Garraf oil field

Rise in sales price

Oil price and Exchange rate assumptions
JCC price

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil. Royalty is excluded in the net sales and price of Bitumen.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd. and Japex
Garraf Ltd.).

22

1H Result

Actual Financial Results for 1H FY2015 (vs FY2014)
FY2014FY2015

1H(a)

1H(a)

Net sales

120,281

146,850+26,568

Gross profit

32,161

34,515+2,354

Exploration expenses

5,723

3,260

▲2,463[ Million ￥]ChangeGross profit

SG&A expenses

14,893

16,143+1,250Operating income

11,543

15,110+3,567

Non-operating income(expenses)

8,358

9,625

+1,267

Ordinary income

19,902

24,736+4,834

2

13

+11

3,983

4,781

+798

38

1,095

+1,057

15,883

18,873+2,990Extraordinary income(losses)
Income taxes
Minority interests inincomeNet income

23

Causes of increase(+) or decrease(▲)

Domestic crude oiland natural gas▲¥0.8billion

Overseas consolidated
subsidiaries+¥3.5 billion

Exploration expenses
Domestic exploration+3.0billion
Overseas exploration▲0.5billion

Non-operating income (expenses)
Share of profit of entities accounted
for using equity method +¥3.1 billion
Provision for loss inoverseas investment▲¥0.7 billionother▲ ¥1.2 billion

Full Year Estimates

3.Revised Full Year Estimates
for the Fiscal Year Ending March 31, 2015
Executive Officer

Michiro Yamashita

24Revised Full Year Estimates

Revised Estimates in FY2015 (Summary)
InitialEstimate
Full(e)May12’14[Billion ￥]RevisedEstimate
Full(e)Nov.7’14

ChangeBillion￥VS Initial
Estimat (%) 350.0

change

323.6

324.3

+0.7

+0%

Operating income

33.0

34.6

+1.6

+4%

Ordinary income

41.4

48.8

+7.3 +17%

Net income

27.3

35.3

+7.9 +29%

100.00101.27

Net Sales

JCC price

US$/bblExchange rate JP¥/US$

100.00103.43

Bitumen price

CA$/bbl

54.15

58.16

Exchange rate

JP¥/CA$

95.00

95.00

+1.27

+4.01
－

2Q (a)

3Q (e)

4Q (e)

JCC price109.51110.70100.00

85.00

56.57

61.84

right axis
Operating income

50.0

48.8

Net income

250.0

200.0

40.0

41.4
34.6

33.0

35.3

30.0

150.0

20.0

100.0

10.0

50.0
CA$/bbl

324.3

60.0

27.3

1Q (a)

Bitumen price323.6

Ordinary income+3.43

Revised Estimate
US$/bbl

300.0

Billion￥Net Sales (left axis)

55.83

59.27

InitialInitial
estimate(e)Mar.12’14
estimate(May 2014)
Main points of difference with initial estimate causes of increase(+) or decrease(▲)□Operating income +¥1.6 billion Gross profit +¥2.3 billion , Exploration expenses ▲¥0.8 billion□Ordinary income +¥7.3 billion Share of profit of entities accounted for using equity method +¥6.2 billion□Net income+¥7.9 billion

25

Revisedestimate
Revised(e)Nov.7’14
estimate(Nov. 2014)0.0

Revised Full Year Estimates

Revised Estimated Natural Gas Sales in FY2015 (vs Initial Estimate)
Overseas produced gas

Sales volume : Million M3
Net sales : Million ￥Initial Estimate
Full(e)May12’14

Revised Estimate
Full(e)Nov.7’14

Million M3changeDomestically produced gas

1,400

1,200

Natural gas ：Salesvolume

1,684

1,712

+28

Net
sales

80,16985,337+5,168

Breakdown of equity natural gas

Domestically
produced gas:
Overseassubsidiary
produced gas:

Sales

1,000

415

801

821

800

600

801

821

+20

400

volume
Sales

417

200

417

415

volume▲1-Initial estimate
Full

Revised Estimate
Full

Sales volume of “Domestically produced gas” stated herein does not include purchased gas. “Overseas produced gas” stated herein are amounts ofJapex (U.S.) Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

26

Revised Full Year Estimates

Revised Estimated Crude Oil Sales in FY2015 (vs FY2015)
Initial Estimate Revised Estimate
Full(e)Full(e)May12’14
Nov.7’14

Sales volume : Thousand KL
Net sales : Million ￥changeSales volume

2,695

2,517

▲178

Net sales

158,248

152,258▲5,990

Domestically produced
crude oil:

Sales volume

391

378

▲13

Net sales

25,17625,524+348

Overseas subsidiary
crude oil:

Sales volume

1,223

1,059

▲164

Net sales

73,94863,496▲10,452

Sales volume

330

330

+0

Net sales

10,666

11,471+805

Crude oil:
Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

US$/bbl

100.00101.27+1.27

Exchange rate

JP¥/US$

100.00103.43+3.43

Bitumen price

CA$/bbl

54.15

58.16

+4.01

Exchange rate

JP¥/CA$

95.00

95.00

－

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil. Royalty is
excluded in the net sales and price of Bitumen. Sales volume and net sales of “Overseas subsidiary crude oil” stated herein areamounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd. and Japex Garraf Ltd.).

27

Revised Full Year Estimates

Revised Estimate for FY2015 (vs Initial Estimate)
Million ￥Initial Estimate
Full(e)May12’14

Revised Estimate
Full(e)Nov.7’14

changeNet sales

323,633

324,378+745

Gross profit

70,611

72,981+2,371

Exploration expenses

3,892

4,712

+820

SG&A expenses

33,64233,588▲54

Operating income

33,077

34,681+1,605Non-operating
income8,393

14,138+5,745

Ordinary income

41,46948,819+7,350

▲1

▲10

▲9

Income taxes

12,195

11,000▲1,195

Minority interests inincome

1,895

2,436

+541

Net income

27,37935,374+7,996Extraordinary income

28

Causes of increase(+) or decrease( ▲)Gross profit
Domestic crude oil and natural gas+¥1.3billion
Overseas consolidated subsidiaries+¥0.8billion

Exploration expenses
Domestic exploration ▲¥0.5billion
Overseas exploration ▲¥0.3billion

Non-operating income (losses)
Equity in earnings+¥6.2billion
Allowance for overseas
investment loss▲¥0.6billion

Revised Full Year Estimates

Revised Estimated Natural Gas Sales in FY2015 (vs FY2014)
Sales volume : Million M3
Net sales: Million ￥Naturalgas

Sales
volumeNet sales

FY 2014
Full(a)

1,418
71,584

FY 2015
RevisedEstimate
Full(e)Nov.7’14

1,712
85,337

Million M3

1,400

Sales
Volume853

Domestically produced gas
Sales volume

Change1,200+293+13,753

1,000

167

415

800

600

Breakdown of equity natural gas
Domestically
producedgas

Overseas produced gas
Sales volume

821

▲33

400

853

821

FY2014Full(a)

FY2015Full(e)200

Overseas
producedgas

Sales
volume

167

415

+248

-

Sales volume of “Domestically produced gas” stated herein does not include purchased gas. “Overseas produced gas” stated herein are amounts ofJapex (U.S.) Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

29

Revised Full Year Estimates

Revised estimated crude oil sales in FY2015 (vs FY2014)
Sales volume: Thousand KL
sales: Million Yen

Crude oil:Net

FY 2015
Revised Estimate Full(e)Nov.7’14

FY 2014
Full(a)Change(VS FY2014)

Sales volume

1,902

2,517

+615

Net sales

119,370

152,258+32,887

Sales volume

390

378

▲12

Net sales

27,391

25,524▲1,868

Sales volume

280

1,059

+779

Net sales

18,07063,496+45,426

Sales volume

342

330

▲13

Net sales

10,962

11,471+509

Breakdown of equity oil
Domestically produced
crude oilOverseas subsidiary
produced crude oil
BitumenOil price and Exchange rate assumptions

JCC price

US$/bbl110.51101.27▲9.24

Exchange rate

JP¥/US$

99.31

103.43+4.12

Bitumen

CA$/bb

51.67

58.16

+6.49

Exchange rate

JP¥/CA$

98.42

95.00

▲3.42

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

30

Revised Full Year Estimates

Revised Estimates for FY2015 (vs FY2014)
Million ￥FY 2014
Full(a)FY 2015
RevisedEstimate Full(e)Nov.7’14

Causes of increase(+) or decrease( ▲)changeNet sales

276,588324,378+47,789

Gross profit

66,127

72,981+6,853

Exploration expenses

9,800

4,712

▲5,088

SG&A expenses

31,69233,588+1,895

Operating income

24,63434,681+10,047

Non-operating income

19,255

14,138▲5,117

Ordinary income
Extraordinary income

43,88948,819+4,930▲8,305▲10+8,296

Income taxes

5,566

11,000+5,433

Minority interests inincome

1,002

2,436

+1,433

Net income

29,01535,374+6,35931

Gross profit
Domestic crude oiland natural gas+¥1.6billion
Overseas consolidated
subsidiaries+¥5.4billion

Exploration expenses
Domestic exploration
Overseas exploration+5.4billion▲0.3billion

Non-operating income (losses)
Share of profit of entities accounted
for using equity method ▲¥2.6 billion
Provision for loss inoverseas investment▲¥0.7 billionother▲ ¥1.3 billion

Extraordinary income
Impairment loss for the businessassets for production operationof Yufutsu oil & gas field +¥7.9billion

Crude oil Price and Exchange Rate Assumptions and Impact on Profits [3Q-4Q]
FY2014JCC price
Exchangerate
Bitumen priceExchange
rate

FY2015

1H (a)

2H (a)

1Q-4Q(a)1stQ(a)2ndQ(a)3rdQ(e)4thQ(e)1Q-4Q(e)US$/bbl108.53112.33110.51109.51110.70100.0085.00

101.27

JP¥/US$

97.58

100.8499.31

102.27101.96105.00105.00103.43

CA$/bbl

52.22

51.16

51.67

56.57

61.84

55.83

59.27

58.16

JP¥/CA$

94.01

98.42

98.42

93.17

95.04

98.04

95.00

95.00

Assumption[3Q-4Q]

Impact on
Profits[3Q-4Q]
OperatingincomeNet income

JCC price

Exchange rate

Bitumen (4thQ)

US$ 92.43/bbl

105.00JP¥/US$

CA$ 59.27/bbl（ 95.00 JP¥/CA$ ）US$ 1 /bbl increase in

A weakening in

CAD 1/bbl increase in

crude oil prices would
push profits up by...

Yen 1/US$ would pushprofits up by…

bitumen prices would
push profits up by…

190 Million Yen

300 Million Yen

140 Million Yen

140 Million Yen( 1.11 Million CA$ )110 Million Yen( 0.71 Million CA$ )70 Million Yen

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

32