ファConsolidated Financial Results for the year ended March 31, 2012 [Japanese GAAP]May 10, 2012
Note: The following report is an English translation of the Japanese-language original.
Company name

: INPEX CORPORATION

Stock Exchange on which the Company is listed

Code number: 1605URL

Representative: Toshiaki Kitamura, President

Contact person: Kimihisa Kittaka, General Manager, Corporate Communications Unit
TEL+81-3-5572-0233: Tokyo Stock Exchange

http://www.inpex.co.jp

Scheduled date of ordinary general meeting of shareholders :June 26, 2012
Scheduled date of filing Financial Report:June 27, 2012

Scheduled date of payment of cash dividends:June 27, 2012

Preparation of supplementary explanatory materials: Yes

Meeting of financial results presentation: Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for the year ended March 31, 2012(April 1, 2011-March 31, 2012)(1) Consolidated operating results(Figures in % represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2012
March 31, 2011

Operating income

Millions of yen%

Millions of yen

1,186,731
943,08025.8
12.2

709,357
529,742

Ordinary income
%

33.9
14.7

Net income

Millions of yen%

Millions of yen%

767,038
508,58750.8
15.1

194,000
128,69950.7
20.0(Note) Consolidated comprehensive income: for the year ended March 31, 2012, ¥ 240,669 million; (109.8%)
for the year ended March 31, 2011, ¥ 114,706 million; ((19.8)%)
Net income per Net income per Net income as a percentage Ordinary income as a Operating income as aof net assets excluding
percentage of total assets percentage of net sales
share—basic
share—diluted
minority interests
For the year ended
Yen
Yen
%
%
%

March 31, 2012
March 31, 2011――

53,137.93
40,832.40

9.3
7.6

26.7
21.7

59.8
56.2

(Reference): Equity in earnings of affiliates: for the year ended March 31, 2012, ¥ 6,638 million
for the year ended March 31, 2011, ¥ 4,933 million(2) Consolidated financial position
Net assets excluding minority interests
Net assets excluding
as a percentage of total assets
minority interests per share
Millions of yen%
Yen

Total assets

Net assets

Millions of yen

As of March 31, 2012
As of March 31, 2011

3,066,397
2,680,379

2,314,193
2,097,382

71.1
74.5

596,908.99
546,958.90(Reference): Net assets excluding minority interests: as of March 31, 2012, ¥ 2,179,251 million
as of March 31, 2011, ¥ 1,996,888 million(3) Consolidated cash flows
For the year ended
March 31, 2012
March 31, 2011

Cash flows fromoperating activities
Millions of yen

Cash flows frominvesting activities
Millions of yen

320,691
274,093(280,864)(844,511)

Cash flows from
Cash and cash equivalents atfinancing activities
end of the year
Millions of yen
Millions of yen

29,294
548,057

249,233
182,025

2. Dividends
Cash dividends per share
At 1st
At 2ndAt 3rdquarter end quarter end quarter end
For the year ended
March 31, 2011
March 31, 2012
For the year ending
March 31, 2013
(forecast)At fiscal
year end

Total

Total cash
Payout ratio
dividends (Annual) (Consolidated)

Cash dividends
as a percentageof net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

―
―

3,000.00
3,000.00――

3,000.00
4,000.00

6,000.00
7,000.00

21,90525,556

14.7
13.2

1.1
1.2

―

3,500.00―

3,500.00

7,000.00

1

15.6

ファ

3. Forecasted Consolidated Operating Results for the year ending March 31, 2013 (April 1, 2012-March 31, 2013)(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales
Millions of yen
For the six months ending
September 30, 2012
For the year ending
March 31, 2013

Operating income% Millions of yen

Ordinary income% Millions of yen

Net income pershare

Net income% Millions of yen%

Yen

535,000(6.7)

281,000(14.3)

279,000(16.1)

68,000(8.6)

18,625.57

1,058,000(10.8)

571,000(19.5)

593,000(22.7)

164,000(15.5)

44,920.50*Notes(1) Significant changes in scope of consolidation: Yes(Changes in the specified subsidiaries during the period due to change in scope of consolidation)
Newly included: INPEX Holdings Australia Pty Ltd, INPEX Ichthys Pty Ltd (two companies)(2) Changes in accounting policies, accounting estimates and restatement of corrections
1. Changes in accounting policies resulting from the revision of the accounting standards andother regulations
2. Other changes in accounting policies
3. Changes in accounting estimates
4. Restatement of corrections(3) Number of shares issued (Common stock)
1. Number of shares issued at the end of the period(including treasury stock):
2. Number of treasury stock at the end of the period:: None: None: None: None3,655,810 shares as of March 31, 2012
3,655,810 shares as of March 31, 2011
4,916 shares as of March 31, 2012
4,916 shares as of March 31, 2011
3,650,894 shares for the year ended March 31, 2012
3,151,894 shares for the year ended March 31, 2011

3. Average number of shares:(Note): Since shareholder of the special class share is entitled to the same rights as that for shareholders of common stock regarding dividends andthe distribution of residual property, the special class share is classified as common stock equivalent share.

(Reference) Non-Consolidated Financial Results
1. Financial results for the year ended March 31, 2012 (April 1, 2011-March 31, 2012)(1) Operating results(Figures in % represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2012
March 31, 2011

Operating income

Millions of yen%

Millions of yen

452,228
376,689

20.1
8.3

233,652
190,645

Net income pershare—basic
For the year ended
March 31, 2012
March 31, 2011

Ordinary income
%

22.6
4.6

Net income

Millions of yen%

Millions of yen%

266,131207,194

28.4
12.0

145,807
119,269

22.3
23.6

Net income pershare—diluted
Yen

Yen

39,937.57
37,840.47――(2) Financial position

As of March 31, 2012
As of March 31, 2011

Net assets as apercentage of total assets

Total assets

Net assets

Millions of yen

Millions of yen%

Yen

2,540,523
1,947,667

1,948,790
1,819,663

76.7
93.4

533,784.50
498,415.80

Net assets per share(Reference): Net assets: as of March 31, 2012, ¥ 1,948,790 million
as of March 31, 2011, ¥ 1,819,663 million*Indication of audit procedure implementation status
This earnings report is exempt from audit procedure under the Financial Instruments and Exchange Act. The audit procedure for consolidated
financial statements under the Financial Instruments and Exchange Act has not been completed at the time of disclosure of this report.
*Explanation regarding the appropriate use of estimated consolidated financial results
The aforementioned forecasts “3. Forecasted Consolidated Operating Results for the year ending March 31, 2013” are based on the currently
available information and contain many uncertainties. The final results might be significantly different from the aforementioned forecasts due tochanges in business conditions including oil and natural gas price levels, production and sales plans, project development schedules, government
regulations and financial and tax schemes. Please refer to “1. (1) Analysis on Consolidated Operating Results” on page 5.

2

Index of the Attachments

1.

Results of Operations and Financial Position………………………………………………………………………………..

4(1) Analysis on Consolidated Operating Results……………………………………………….…….………..…………….

4(2) Analysis on Consolidated Financial Position…………………………………………………………………………......

5(3) Dividend policy and Dividends for the year ended March 31, 2012 and for the year ending March 31, 2013…………….

5

2.

Overview of the INPEX CORPORATION Group…………………………………………………………………………...

6

3.

Management Policy………………………………………………………………………………………………………...... 7

4.

5.

6.

(1) Management Strategy…………………………………………………………………………………………………….

7(2) Medium- to Long-Term Management Key Initiatives………………………………………………………….………...

7

Consolidated Financial Statements………………………………………………………………………………………….

10(1) Consolidated Balance Sheets………………………………………………………………………………………….....

10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………………………..

12

Consolidated Statements of Income……………………………………………………………………………………...

12

Consolidated Statements of Comprehensive Income…………………………………………………………………….

13(3) Consolidated Statements of Changes in Net Assets………………………………………………………………………

14(4) Consolidated Statements of Cash Flows………………………………………………………………………………….

17(5) Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern……………………………………………………………………
(6) Basis of Presenting Consolidated Financial Statements…………………………………………………………………..

19(7) Notes to Consolidated financial Statements………………………………………………………………………………

24(Consolidated Balance Sheets) …………………………………………………………………………………………...

24(Consolidated Statements of Income) …………………………………………………………………………………….

26(Consolidated Statements of Comprehensive Income) …………………………………………………………………...

26(Consolidated Statements of Changes in Net Assets) …………………………………………………………………….

27(Consolidated Statements of Cash Flows) ………………………………………………………………………………..

29(Segment Information) …………………………………………………………………………………………………...

30(Financial Instruments) …………………………………………………………………………………………………..

34(Securities) ……………………………………………………………………………………………………………….

38(Derivatives Transactions) ……………………………………………………………………………………………….

40(Business Combination) ………………………………………………………………………………………………….

41(Per Share Information) ………………………………………………………………………………………………….

42(Significant Subsequent Events) …………………………………………………………………………………………

43(Omissions of Disclosure) ………………………………………………………………………………………………..

43

Non-Consolidated Financial Statements……………………………………………………………………………………

44(1) Non-Consolidated Balance Sheets………………………………………………………………………………………..

44(2) Non-Consolidated Statements of Income………………………………………………………….……………………..

47(3) Non-Consolidated Statements of Changes in Net Assets…………………………………………………………………

48(4) Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern……………………………………………………………………

50

Other………………………………………………………………………………………………………………………....

50(1) Production, Orders Received and Sales Performance…………………………………………………………………….

50

3

19

1 Results of Operations and Financial Position(1) Analysis on Consolidated Operating Results
During this fiscal year, while Japanese economy was in difficult circumstances by the effect of the Great East Japan Earthquake
which occurred in March 2011, it remained unclear outlook due to the protracted appreciation of Japanese yen against the U.S.
dollar and European debt crisis, despite recovery trend of productive activity and individual consumption in Japan.
Under such business environment, Brent crude oil, an important indicator of global crude oil prices that affect our group’sbusinesses, started from US$118.70 per bbl and was on a downward trend behind a concern of downturn in global economy andEuropean debt crisis which led to US$99.79 at the beginning of October.
However, the oil prices turned upward trend and came up to US$115.00 in November since E.U. officials agreed on a solution for
the Greece debt problem. Then the prices went down to US$103.35 in mid-December due to reactivation of European debt crisis,
instead they climbed up against a background of rising tension of nuclear development in Iran and closed at US$122.88 per bbl at
the fiscal year end. Meanwhile, domestic crude oil and petroleum products prices followed a similar pattern of global oil pricemovements. Reflecting these situations, our group’s average sales price for crude oil for the fiscal year was at US$112.97 per bbl
which is US$28.63 higher compared with the previous year.
The foreign exchange market, another important factor that affects our group's businesses, began to trade at the middle of ¥83
level to the U.S. dollar.
The yen depreciation went to ¥85.53 in early April based on the assumptions that second round of the U.S. quantitative easing
would be completed as planned in June and Japanese exporting companies would refrain from buying yen due to the earthquake.
However, yen was on a strong note over ¥80 to the U.S. dollar since there was expansion of pessimistic views to the future of the
U.S. economy and major perspective of that the U.S. wouldn't start tightening its monetary policy for the time being.
The steady yen appreciation continued and yen hit historical high of ¥75.32 at the end of October on the back of strong
perspective of monetary easing among major countries while there were growing fears of economic recession mainly in Europe.
On the other hand, the yen appreciation appeared to be pausing due to yen selling intervention by Bank of Japan with the scale of¥9 trillion.
Towards the fiscal year end, yen depreciated again since Japanese balance of trade became worse and interest rate of the U.S.
turned to upward, and as a result, TTM closed at ¥82.14 to the U.S. dollar which turned out to be ¥1.01 higher than that of the
fiscal year end of March 31, 2011.
Reflecting these situations, our group's average sales exchange rate for this fiscal year was ¥79.13 to the U.S. dollar which was¥6.53 higher compared with the previous year.
Consolidated net sales for the year ended March 31, 2012 increased by ¥243.6 billion, or 25.8%, to ¥1,186.7 billion from theprevious fiscal year due to an increase in sales price of crude oil and natural gas, despite a decrease in sales volume of natural gas
and a negative effect of appreciation of Japanese yen against the U.S. dollar. Net sales of crude oil increased by ¥168.3 billion, or
30.2%, to ¥726.2 billion, and net sales of natural gas increased by ¥72.8 billion, or 20.4%, to ¥429.0 billion. Sales volume of crude
oil increased by 4,086 Mbbls, or 5.3 %, to 80,738 Mbbls due to an increase in sales volume in the ADMA Block. Sales volume ofnatural gas decreased by 43,627 MMcf, or 10.9%, to 357,601 MMcf. Sales volume of overseas natural gas decreased by 44,977
MMcf, or 13.3%, to 291,999 MMcf due to a decrease in sales volume in Offshore Mahakam Block and so on, and sales volume ofdomestic natural gas increased by 36 MM ㎥, or 2.1%, to 1,758 MM ㎥ (65,602 MMcf). The average sales price of overseas crude
oil increased by US$28.63 per bbl, or 33.9 %, to US$112.97 per bbl. Meanwhile, the average sales price of overseas natural gas
increased by US$5.02 per Mcf, or 55.2%, to US$14.12 per Mcf. In addition, the average sales price of domestic natural gas
increased by ¥2.83, or 6.8%, to ¥44.56 per ㎥.
The increase of ¥243.6 billion in net sales was mainly derived from the following factors: a decrease in sales volume pushing sales
down of ¥4.4 billion, an increase in unit sales price contributing ¥334.0 billion to the increase, the appreciation of Japanese yen
against the U.S. dollar pushing sales down of ¥88.4 billion, and an increase in net sales excluding crude oil and natural gas of ¥2.5
billion.
Cost of sales for the year ended March 31, 2012 increased by ¥60.6 billion, or 18.1%, to ¥395.4 billion due mainly to an increasein royalty in the ADMA Block owing to an increase in sales. Exploration expenses decreased by ¥0.2 billion, or 2.1%, to ¥11.7
billion, and selling, general and administrative expenses increased by ¥3.6 billion, or 5.5%, to ¥70.1 billion. As a result, operating
income increased by ¥179.6 billion, or 33.9%, to ¥709.3 billion.
Other income increased by ¥70.9 billion, or 227.4 %, to ¥102.0 billion due to an increase in gain on transfer of mining rights.
Other expenses decreased by ¥7.9 billion, or 15.2%, to ¥44.4 billion due to a decrease in provision for allowance for doubtful
accounts. As a result, ordinary income increased by ¥258.4 billion, or 50.8%, to ¥767.0 billion.
Total amount of current income taxes and deferred income taxes increased by ¥168.2 billion, or 45.6%, to ¥536.9 billion, andminority interests were ¥36.1 billion. As a result of the above effects, net income for the year ended March 31, 2012 increased by¥65.3 billion, or 50.7%, to ¥194.0 billion from the previous fiscal year.
Financial results by segment are as follows:
1)

2)

3)

Japan
Net sales increased by ¥9.1 billion, or 8.7%, to ¥113.6 billion due to an increase in sales volume and sales price of naturalgas. Operating income decreased by ¥1.3 billion, or 5.2%, to ¥24.6 billion due to an increase in net purchase of natural gas.
Asia & Oceania
Net sales increased by ¥76.3 billion, or 18.8%, to ¥483.1 billion due to an increase in sales price of crude oil and natural gas
despite a decrease in sales volume of crude oil and natural gas, and the appreciation of Japanese yen against the U.S. dollar.
Operating income increased by ¥63.7 billion, or 27.0%, to ¥299.5 billion.
Eurasia (Europe & NIS)

4Net sales increased by ¥16.0 billion, or 23.4%, to ¥84.3 billion due to an increase in sales price of crude oil, despite theappreciation of Japanese yen against the U.S. dollar. Operating income increased by ¥10.6 billion, or 29.1%, to ¥47.0
billion.
4) Middle East & Africa
Net sales increased by ¥149.2 billion, or 42.6%, to ¥500.0 billion due to an increase in sales volume and sales price of crudeoil, despite the appreciation of Japanese yen against the U.S. dollar. Operating income increased by ¥111.0 billion, or 45.7%,
to ¥354.1 billion.
5) Americas
Net sales decreased by ¥7.1 billion, or 56.4%, to ¥5.5 billion due to a decrease in sales volume of crude oil, and operating
loss increased by ¥2.4 billion, or 81.8%, to ¥5.5 billion due to an increase in exploration expenses.
On a next fiscal year outlook, consolidated net sales for the six months ending September 30, 2012 are expected to be ¥535.0
billion, to decrease 6.7% compared with the six months ended September 30, 2011, and net sales for the year ending March 31,
2013 are expected to be ¥1,058.0 billion, to decrease 10.8% compared with the year ended March 31, 2012.
Operating income for the six months ending September 30, 2012 is expected to be ¥281.0 billion, to decrease 14.3% comparedwith the six months ended September 30, 2011, and operating income for the year ending March 31, 2013 is expected to be¥571.0 billion, to decrease 19.5% compared with the year ended March 31, 2012.
Ordinary income for the six months ending September 30, 2012 is expected to be ¥279.0 billion, to decrease 16.1% comparedwith the six months ended September 30, 2011, and ordinary income for the year ending March 31, 2013 is expected to be ¥593.0
billion, to decrease 22.7% compared with the year ended March 31, 2012. Net income for the six months ending September 30,
2012 is expected to be ¥68.0 billion, to decrease 8.6% compared with the six months ended September 30, 2011, and net income
for the year ending March 31, 2013 is expected to be ¥164.0 billion, to decrease 15.5% compared with the year ended March 31,
2012.
Net sales for the year ending March 31, 2013 are expected to decrease due to the forecasted decrease in crude oil price comparedwith this fiscal year, and operating income, ordinary income and net income for the year ending March 31, 2013 are expected todecrease as well.
In these estimates, the crude oil price is assumed to be US$100.0 per barrel (for Brent crude oil) with the exchange rate ofJapanese yen against the U.S. dollar at ¥80 through the year ending March 31, 2013.
(2) Analysis on Consolidated Financial Position
Consolidated total assets as of March 31, 2012 increased by ¥386.0 billion to ¥3,066.3 billion from ¥2,680.3 billion as of March
31, 2011. Current assets increased by ¥415.7 billion to ¥908.7 billion due to an increase in marketable securities, and cash anddeposits. Fixed assets decreased by ¥29.7 billion to ¥2,157.6 billion due to a decrease in investment securities despite an increase
in recoverable accounts under production sharing.
Meanwhile, total liabilities increased by ¥169.2 billion to ¥752.2 billion from ¥582.9 billion as of March 31, 2011. Current
liabilities increased by ¥113.1 billion to ¥367.8 billion due to an increase in accounts payable-other and income taxes payable.
Long-term liabilities increased by ¥56.0 billion to ¥384.3 billion due to an increase in long-term debt and others.
Net assets increased by ¥216.8 billion, to ¥2,314.1 billion. Total shareholders’ equity increased by ¥172.0 billion, to ¥2,184.3
billion. Total accumulated other comprehensive income increased by ¥10.2 billion to ¥ (5.1) billion and minority interests
increased by ¥34.4 billion to ¥134.9 billion.
As for cash flows for the year ended March 31, 2012, net cash provided by operating activities increased by ¥46.5 billion to¥320.6 billion from the previous fiscal year due to an increase in income before income taxes and minority interests owing to anincrease in sales price of crude oil and natural gas, and an increase in income taxes paid. Meanwhile, net cash used in investing
activities decreased by ¥563.6 billion to ¥280.8 billion due to a decrease in payments for purchase of investment securities and anincrease in proceeds from transfer of mining rights. Net cash provided by financial activities decreased by ¥518.7 billion to ¥29.2
billion due to a record of proceeds from issuance of common stock in the previous fiscal year. After deducting ¥2.6 billion of theeffect of exchange rate changes on cash and cash equivalents, the increase in cash and cash equivalents at the end of the year
ended March 31, 2012 amounted to ¥66.4 billion. Cash and cash equivalents at the end of the year ended March 31, 2012 totaled¥249.2 billion reflecting the above net increase of ¥66.4 billion and ¥0.7 billion of increase in cash and cash equivalents fromnewly consolidated subsidiary, from ¥182.0 billion at the end of the previous fiscal year.
(3) Dividend policy and Dividends for the year ended March 31, 2012 and for the year ending March 31, 2013
In order to secure a stable supply of oil and natural gas resources efficiently, INPEX CORPORATION Group aims to expand its
operating base. To this end, we are reinforcing investments in exploration and development in Japan and overseas, as well as inmaintenance and expansion of the supply infrastructure. The robust financial basis of INPEX CORPORATION Group is crucial
for maintaining this level of investment. Therefore, our basic policy is to maximize corporate value through ongoing maintenanceand enlargement of our reserves and production of oil and natural gas by affirmative investments, while paying out cash
dividends as direct compensation to shareholders, in light of the medium- to long-term prospects for INPEX CORPORATIONGroup.
We decided year-end dividend to be ¥4,000 per share for the year ended March 31, 2012 based on the policy above. With the
mid-term dividend of ¥3,000 per share, thus total dividend for the year is to be ¥7,000 per share.
We plan a mid-term dividend to be ¥3,500 per share and a year-end dividend to be ¥3,500 per share for the year ending March 31,
2013, and thus a total dividend for the year is to be ¥7,000 per share.
As to the use of retained earnings, we plan to apply them to investments for the purpose of maintenance and enlargement of ourreserves and production of oil and natural gas and so on.

5

2. Overview of the INPEX CORPORATION GroupThe INPEX CORPORATION Group consists of INPEX CORPORATION, 70 subsidiaries (including 59 consolidated
subsidiaries), 20 affiliates (including 13 equity method affiliates) and their 3 subsidiaries (as of March 31, 2012). The Group
primarily engages in exploration, development, production and sales of crude oil and natural gas in Japan as well as in Asia &Oceania, Eurasia (Europe & NIS), the Middle East & Africa and Americas.
The following diagram shows our Group’s business flow.
Crude oil and Natural gas exploration, development, production and sales

INPEX CORPORATION●Equity method affiliates(Asia & Oceania)
MI Berau B.V.
(Middle East & Africa)
Angola Japan Oil Co., Ltd.
(Americas)
INPEX Offshore North Campos, Ltd.
Other 9 equity method affiliates
Pipeline, Liquefaction etc.

Natural Gas andother Sales

Pipeline, Liquefaction
Refining etc.

Drilling, Civil work etc.

Crude Oil
Sales

Crude Oil
Sales

Crude Oil Sales

Natural Gas Sales＜Pipeline, Liquefaction, Refining Marketing etc.＞●Consolidated subsidiaries(Asia & Oceania)
INPEX DLNGPL Pty Ltd(Eurasia(Europe & NIS))INPEX BTC Pipeline, Ltd.
(Japan)Teiseki Pipeline Co., Ltd.
Saitama Gas Co., Ltd.
Other 3 consolidated subsidiaries●Equity method affiliates(Asia & Oceania)
Ichthys LNG Pty Ltd●Consolidated subsidiaries(Japan)Teiseki Drilling Co., Ltd.
And one consolidated subsidiary

Natural Gas andother Sales

Drilling, Civil work etc.

Other business

Note : 1 symbol “→” indicates capital investment（including indirect holdings）
2 symbol “⇒” indicates products and services flow

6

Customers

Crude Oil Sales＜Exploration, Development, Production＞●Consolidated subsidiaries(Asia & Oceania)
INPEX Natuna, Ltd.
INPEX Sahul, Ltd.
INPEX Alpha, Ltd.
INPEX Ichthys Pty Ltd.
INPEX Masela, Ltd.
(Eurasia (Europe & NIS))INPEX Southwest Caspian Sea, Ltd.
INPEX North Caspian Sea, Ltd.
(Middle East & Africa)
Japan Oil Development Co., Ltd.
Teikoku Oil (D.R. Congo) Co., Ltd.
(Americas)
Teikoku Oil (Venezuela) Co., Ltd.
INPEX Canada, Ltd.
Other 38 consolidated subsidiaries〈Oversea’s Crude oil Sales〉
INPEX Trading , Ltd.
(Consolidated Subsidiary)

Crude Oil/ Natural GasSales3. Management Policy(1) Management Strategy
The INPEX Group positions itself to become a top class international oil and gas exploration and production company
through sustainable growth in the oil and gas development business. With natural gas as the core of our business, we will growinto an integrated energy company by making contributions to a stable energy supply to broader communities. We willcontinue to play a significant role in boosting the capability of supplying energy to Japan while contributing to the global
economic growth and social development. Through these efforts, we intend to further advance our reputation among ourshareholders and more broadly our stakeholders as a company serving an essential role in the global community.
(2) Medium- to Long-Term Management Key Initiatives
Based on the Management Strategy above, we carry out our businesses in accordance with three measures as follows;- Continuous enhancement of our E&P activities to become a top class international oil & gas E&P company- Strengthening our gas supply chain to further globalize our gas business- Reinforcement of our renewable energy initiatives to become an integrated energy company that contributes to global
community
Our challenges are as follows;
The key management initiatives for the Company in developing oil and natural gas resources are to produce oil and natural
gas in a stable manner ensuring safety and taking care of the environment communities, and achieving sustainable growth bymaintaining and expanding reserves through reinvesting the cash flow obtained from existing oil and gas fields. The INPEXGroup strives to ensure HSE management and preservation of the environment, formulating the safety-conscious andenvironmental sound system or framework across the INPEX Group based on internationally recognized standards. By
combining overseas projects that promise high growth potential arising from expansion of reserves with domestic projects thatare without country risks and foreign exchange risks, we are seeking qualitative improvements in our asset portfolio. At thesame time, by leveraging our business resources more effectively through an organic linkage of our overseas assets anddomestic infrastructure, we aim to further enhance our corporate value.
As our immediate business challenges, we recognize the importance of steady development activities of the two large scale
LNG projects in Australia (Ichthys) and Indonesia (Abadi), stable production activities under the existing producing projects
including Mahakam in Indonesia, ADMA Block offshore Abu Dhabi and ACG oil fields in Azerbaijan, proactive exploration
activities for acquiring new oil and gas reserves, and pursuit of opportunities to acquire good projects. In our domestic gas
business, we consider that the sustainable growth of natural gas business is important to respond to growing social
requirements for expanding natural gas use. To meet such requirements, we have been enhancing domestic gas infrastructure
including construction of Naoetsu LNG Receiving Terminal, expansion of Shin Tokyo Line and construction of Toyama Line,and we have been developing the Gas Supply Chain which optimizes usage of overseas natural gas assets and domestic gas
supply infrastructure.
To overcome the challenges above and to ensure sustainable growth of our corporate value, we will prepare organization
qualifying for global companies including establishing a new department to pursue new opportunities more actively by further
strengthen our corporate governance, upgrade and expand development plan of human resources, and strive to maintainfinancial soundness.
Our policy of business operation and approach to address the challenges are as follows;① Achieve Well Balanced Asset Portfolio- Regional Diversification
The operating area and asset portfolio of the Company has diversified to not only Japan, Asia, and Oceania where wehave a wealth of experience and assets, but also the Middle East, the Caspian Sea, Central and South America, and Africa
and so on. We will proactively continue to invest in Asia, Oceania and other regions taking the regional balance into
consideration.
- Output ratio between Crude Oil and Gas
According to the outputs by products, the share of crude oil is just under 60% while the share of natural gas is just over40%.
Crude oil is utilized all over the world as an easily handled fuel with various uses as well as its ease of transportation andstorage. As crude oil is a rather sensitive commodity, the sales prices are often influenced by the conditions of the market.
However, the customers are not fixed in a long term, and the amount of the investment for production and transportation
facilities is small in comparison with that of natural gas. Furthermore, the time required for the development stage isrelatively short so that the company can gain profit comparatively quickly once the oil fields are discovered.
Natural gas is the most environmentally friendly fuel among fossil energies and its utilization is expected to bepromoted as a quick effective measure against global warming. Commercial production of natural gas requires substantial
investment and a long lead time of preparation for constructing liquefaction plants or pipelines. Since the buyer also must
make large investment in LNG receiving facilities, stable and long-term sales contracts are essential. With an assurance oflong term LNG supply to the customers, a relatively stable profitability is achieved while it is sensitive to oil pricefluctuations.
Regarding acquisition of new projects, we focus on a balance between crude oil and natural gas production to ensure
efficient investment with a view to long-term cash flow.
- Balancing the Project Phases among Exploration, Development and Production
Because crude oil and gas reserves are limited, we continuously seek to acquire new reserves in order to ensure stableprofitability. Therefore, we reinvest in exploration to discover new reserves while maintaining our cash flow fromproduction. Projects must be carried out continuously in order to allocate and balance our assets among exploration,

7

development and production stages. To achieve this balance, we invest in exploration, producing and undeveloped oil andgas assets.
- Balancing Contractual Arrangements
We intend to diversify the risk of oil price volatility by balancing contractual arrangements among production sharing
contracts, or concession contracts, for which profit is linked to the price of oil, with service contracts or fixed margin
contracts, for which profitability is less influenced by oil prices and amounts are fixed.
② Investments through Acquisition relative to the Expiration of Working Interests
The production sharing contract for the offshore Mahakam area, which is the Company’s major gas production project,
expires in 2017. Although we will negotiate to extend the contract, production is expected to decline in the long term as theremaining reserves decline even if the contract is renewed. We intend to maintain and increase production beyond 2017 byacquiring working interests from other companies or participating in new projects or taking over companies that havesubstantial production and stable cash flow.
③ Enhance Activities and Capabilities as Operator
In acting as operator, we face managerial issues such as the difficulty in securing manpower and the heavy burden offinancing. However, involvement as operator also increases our opportunities to obtain new working interests by improving
our technological capabilities and winning recognition from oil and gas producing countries and international oil companies.
The Company is pursuing opportunities to act as operator with enhanced technological capabilities resulting from businessintegration while addressing the effective utilization of management resources.
④ Strengthening Relationships with Leading Domestic and International Oil and Gas Companies
Developing petroleum and gas involves considerable risks. Large-scale projects in particular require huge investment,
presenting an insuperable obstacle for a single company. Companies form a consortium to share the risk, and this is aninternational practice too. The Company plans to expand its business and to diversify risks by increasing opportunities toparticipate in projects through enhanced cooperation with major international oil companies, national oil companies in oil andgas producing countries as well as leading private oil resource developers, trading companies and other energy-relatedcompanies.
⑤ Enlarging the Company’s Business Domain through Organic Linkage of Domestic and Foreign Assets
The Company aims to expand operations in the domestic natural gas market, which represents a stable base of earnings
that is expected to grow. As well as building a natural gas pipeline network to supply the promising market in the
Kanto-Koshinetsu region, we plan to strengthen production system in the key Minami Nagaoka gas field. We also own
promising undeveloped assets, primarily natural gas, in Indonesia and Australia to ensure their long-term growth. We willconsider the possibilities of gas business integration that organically links these overseas gas assets with our domestic
infrastructure (gas supply chain), as an aggressive pursuit of the enlarged business domain.
⑥ Promote an Efficient and Transparent Corporate Management
The Company, as a global one, bears the heavy responsibility of assuring a stable supply of energy to Japan in an efficientmanner. Consequently, we recognize not only that our corporate social responsibility is increasing but also that it is essentialthat we exercise sensitivity in conducting business in communities in Japan and around the world. Therefore, we havereinforced CSR management including setting up the CSR committee and will continuously strengthen our corporate
governance.
⑦ Health, Safety and Environmental Efforts
The Company has organized integrated HSE (Health, Safety and Environment) management system in line withinternational standards and has been trying hard to secure the safety and health of people concerned in our business and theenvironment. The Company places prevention of incident as the top priority and positively address to improve required
documents including manuals and to develop skills through personnel training and education for emergency situation. As forenvironmental issues, particularly global warming, we make every effort to minimize the effects on surrounding areas when
we explore, develop, produce and sell energy resources. Also we are working to reduce our greenhouse gas emission unit,
reduce emissions of chemical substances, suppress emissions into the atmosphere and river systems, prevent soil pollution,
reduce waste and conserve biological diversity.
⑧ Development of New Business
The Company is positioned for “Evolvement into a company that offers diversified forms of energy” as one of our
medium-to long-term strategies and is doing business based on the strategy. Our main goal is to live with the global
community and to contribute to the sustainable social development by growing ourselves to be an energy company, who iscapable of supplying a variety of environmentally friendly energies in addition to oil and natural gas. We are challenging todevelop new business areas in cooperation with domestic and international companies, universities and others. In particular,
we pursue opportunities to participate in new business or develop new business for renewable energy such as solar
photovoltaic and solar power generation, wind power or geothermal power generation and biomass fuel etc. andcomprehensive energy utilization technologies for expansion of access to renewable energy including reserve cell and fuelbattery.

In order to supply energy in a stable and efficient manner and thereby contribute to the good of society, the Company aims
to maintain and expand its reserves and production and will seek to allocate our business resources optimally and maintain8the soundness of our financial position with a view to securing steady growth.
In addition, to fulfill our corporate social responsibility, we will strengthen corporate governance and compliance, andcarry out strict safety management throughout our operations. Recognizing our obligation to protect the environment and to
become an integral part of the communities where we operate, we aim to improve our corporate value over the long term.

9更新日時:2012/05/10 10:58:00 印刷日時:12/05/10 10:58

ァイル名:③-1H24.3_aBS【済】.doc

4 Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Accounts

As of March 31, 2011

As of March 31, 2012

(Assets)
Current assets
Cash and deposits

112,395

275,903

Accounts receivable-trade95,391

119,459

Marketable securities

207,165

399,382

Inventories*1

12,137*1

11,977

Deferred tax assets

9,450

18,692

Accounts receivable-other

57,032

71,911Other

12,50024,388

Allowance for doubtful accounts(13,141)(13,013)

Total current assets

492,932

908,702

Buildings and structures, net

118,054

107,300

Wells, net

28,604

26,827

Machinery, equipment and vehicles, net

58,22754,462

Land

20,707

20,070Construction in progress

75,077

167,779

Other, net

79,1897,257

Fixed assets
Tangible fixed assets

Total tangible fixed assets*2,4,5379,861*2,4,5

383,697

Intangible assets
Goodwill

101,362

94,601

Exploration and development rights

125,228

118,007

Mining rights

17,554

16,492

Other

4,966

4,216

Total intangible assets*5249,110*5

233,317*3,4

975,541*3,4

886,222

Investments and other assets
Investment securities
Long-term loans receivable

13,97948,109Recoverable accounts under production
sharing534,330

568,318

Deferred tax assets

27,21330,554

Other

*3,4

118,340*3,4

115,141

Allowance for doubtful accounts

(270)

(715)

Allowance for recoverable accounts
under production sharing(96,879)(100,671)

Allowance for investments in exploration(13,780)(6,280)Total investments and other assets

1,558,474

1,540,679

Total fixed assets

2,187,447

2,157,695

Total assets

2,680,379

3,066,39710更新日時:2012/05/10 10:58:00 印刷日時:12/05/10 10:58

ァイル名:③-1H24.3_aBS【済】.doc(Millions of yen)Accounts

As of March 31, 2011

As of March 31, 2012

(Liabilities)
Current liabilities
Accounts payable-trade23,441

Short-term loans*4

Income taxes payable

4,441

30,228*4

113,101

Accounts payable-other*4

Provision for exploration projects

83,3094,801
139,144*4

133,153

9,537

5,551

Accrued bonuses to officers

127

128

Asset retirement obligations

3,686

3,337

Other

17,08351,498

Total current liabilities

254,728

367,843

Long-term liabilities
Long-term debt

*4268,706*4

313,972

Deferred tax liabilities

36,51743,178

Accrued retirement benefits to employees

6,979

6,340

Accrued special repair and maintenance

443

367

8,965

9,804

Asset retirement obligations
Other

*4

Total long-term liabilities

6,655

*4

10,697328,268

384,361

582,997752,204

Common stock

290,809290,809

Capital surplus

679,287

679,287

Retained earnings

1,047,431

1,219,526

Treasury stock(5,248)(5,248)2,012,280

2,184,375

1,455

6,952

―

4,118

Translation adjustments(16,847)(16,195)

Total accumlated other comprehensive income(15,391)(5,124)

Minority interests

100,493

134,941

Total net assets

2,097,382

2,314,193

Total liabilities and net assets

2,680,379

3,066,397

Total liabilities(Net assets)
Shareholders’ equity

Total shareholders’ equity
Accumlated other comprehensive income
Unrealized holding gain on securities
Unrealized gain from hedging instruments

1112ァイル名:③-2H24.3_bPL_包括利益【済】.doc

更新日時(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
For the year ended
March 31, 2011

Accounts

For the year ended
March 31, 2012

Net sales

943,080

1,186,731

Cost of sales

334,833

395,442

Gross profit

608,247

791,288

Exploration expenses

12,00011,747*1,2

Selling, general and administrative expenses

66,504*1,2

70,184

529,742

709,357

Interest income

4,110

4,399

Dividend income

5,721

6,993

Equity in earnings of affiliates

4,933

6,638

Gain on transfer of mining rights

7,333

70,260

Other

9,076

13,790Total other income

31,176

102,082

Interest expense

1,073

1,227

Provision for allowance for recoverable accounts
under production sharing

11,481

14,816

Provision for exploration projects

3,082

518

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

1,555

―

Foreign exchange loss

11,53914,640

―

5,370

Other

23,599

7,827

Total other expenses

52,33144,400Ordinary income

508,587

767,038

Income before income taxes and minority interests

508,587

767,038

Income taxes-current

367,082

543,156

Income taxes-deferred

1,614(6,223)

Total income taxes

368,697

536,933

Income before minority interests

139,890

230,105

Minority interests

11,19036,104

Net income

128,699

194,000

Operating income
Other income

Other expenses

Loss on business withdrawal

1213ァイル名:③-2H24.3_bPL_包括利益【済】.doc

更新日時

Consolidated Statements of Comprehensive Income(Millions of yen)
For the year ended
March 31, 2011

Accounts

Income before minority interests

For the year ended
March 31, 2012

139,890

230,105

Unrealized holding gain (loss) on securities(10,950)

5,498

Unrealized gain from hedging instruments

―

4,118

Translation adjustments(11,516)

2,082

Share of other comprehensive income of associates
accounted for by the equity method(2,716)(1,134)

Total other comprehensive income(25,183)

Comprehensive income

114,706

240,669

105,782

204,267

8,923

36,401Other comprehensive income*1

10,564

Total comprehensive income attributable to
Shareholders of INPEX CORPORATION
Minority interests13更新日時:2012/05/10 10:59:00 印刷日時:12/05/10 10:59

ファイル名:③-3H24.3_連結変動計算書【済】.doc(3) Consolidated Statements of Changes in Net Assets(Millions of yen)Accounts

For the year ended
March 31, 2011

For the year ended
March 31, 2012

Shareholders’ equity
Common stock
30,000290,809

Issuance of new shares

260,809―

Total changes during the period

260,809―290,809290,809418,477

679,287

Issuance of new shares

260,809―

Total changes during the period

260,809―679,287

679,287

936,744

1,047,431

Cash dividends paid

(18,013)(21,905)

Net income

128,699

194,000

Total changes during the period

110,686

172,095

1,047,431

1,219,526

Balance at beginning of the period(5,248)(5,248)

Balance at end of the period(5,248)(5,248)1,379,974

2,012,280

Issuance of new shares

521,619―

Cash dividends paid

(18,013)(21,905)

Net income

128,699

194,000

Total changes during the period

632,305

172,095

2,012,280

2,184,375

Balance at beginning of the period
Changes during the period

Balance at end of the period
Capital surplus
Balance at beginning of the period
Changes during the period

Balance at end of the period
Retained earnings
Balance at beginning of the period
Changes during the period

Balance at end of the period
Treasury stock

Total shareholders’ equity
Balance at beginning of the period
Changes during the period

Balance at end of the period14

更新日時:2012/05/10 10:59:00 印刷日時:12/05/10 10:59

ファイル名:③-3H24.3_連結変動計算書【済】.doc(Millions of yen)Accounts

For the year ended
March 31, 2011

For the year ended
March 31, 2012

Accumulated other comprehensive income
Unrealized holding gain on securities
Balance at beginning of the period

12,351

1,455

Other changes in items other than thosein shareholders’ equity, net(10,895)

5,497

Total changes during the period(10,895)

5,497

1,455

6,952

―

―

Other changes in items other than thosein shareholders’ equity, net

―

4,118

Total changes during the period

―

4,118

Balance at end of the period

―

4,118

(4,826)(16,847)

Other changes in items other than thosein shareholders’ equity, net(12,021)651

Total changes during the period(12,021)651

Balance at end of the period(16,847)(16,195)

7,525(15,391)

Other changes in items other than thosein shareholders’ equity, net(22,916)

10,266

Total changes during the period(22,916)

10,266

Balance at end of the period(15,391)(5,124)

103,103

100,493

Other changes in items other than thosein shareholders’ equity, net(2,609)34,448

Total changes during the period(2,609)34,448

Balance at end of the period

100,493

134,941

Changes during the period

Balance at end of the period
Unrealized gain from hedging instruments
Balance at beginning of the period
Changes during the period

Translation adjustments
Balance at beginning of the period
Changes during the period

Total accumulated other comprehensive
incomeBalance at beginning of the period
Changes during the period

Minority interests
Balance at beginning of the period
Changes during the period15

更新日時:2012/05/10 10:59:00 印刷日時:12/05/10 10:59

ファイル名:③-3H24.3_連結変動計算書【済】.doc(Millions of yen)Accounts

For the year ended
March 31, 2011

For the year ended
March 31, 2012

Total net assets
Balance at beginning of the period

1,490,603

2,097,382

Issuance of new shares

521,619―

Cash dividends paid

(18,013)(21,905)

Net income

128,699

194,000

Other changes in items other than thosein shareholders’ equity, net(25,526)

44,714

Total changes during the period

606,779

216,810

2,097,382

2,314,193

Changes during the period

Balance at end of the period16

- 17 -- 17 -ファイル名:③(4) Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
March 31, 2011

Accounts

For the year ended
March 31, 2012

Cash flows from operating activities
Income before income taxes and minority interests

508,587

767,038

Depreciation and amortization

54,24548,026

Amortization of goodwill

6,760

6,760

1,555

―

15,32018,990(5,442)(3,915)

Provision for accrued retirement benefits to employee

(592)

(637)

Other provisions

11,462(25)

Interest and dividend income(9,832)(11,393)

Interest expense

1,073

1,227

Foreign exchange loss (gain)(3,014)5,334

Equity in earnings of affiliates(4,933)(6,638)Gain on transfer of mining rights(7,333)(70,260)

50,81653,543(17,368)(21,041)(11,375)(23,816)

Inventories

(222)

194

Accounts payable-trade

7,277

6,561

Accounts receivable-other

7,693(19,773)

Accounts payable-other

9,698

40,942

Advances received(2,489)23,890

Other

(594)

369

Subtotal

611,289

815,381Interest and dividends received

13,07916,996

Interest paid

(747)

(943)

Income taxes paid

(349,526)(510,742)

Net cash provided by operating activities

274,093

320,691

Loss on adjustment for changes of accounting standard for
asset retirement obligations
Provision for allowance for recoverable accounts
under production sharing
Provision for exploration projects

Recovery of recoverable accounts under
production sharing (capital expenditures)
Recoverable accounts under production
sharing (operating expenditures)
Accounts receivable-trade17

- 18 -- 18 -ファイル名:③(Millions of yen)
For the year ended
March 31, 2011

Accounts

For the year ended
March 31, 2012

Cash flows from investing activities
Increase in time deposits(493)(88,771)

Decrease in time deposits

3,849

6,064

Increase in long-term deposits(53,500)―

Payments for purchases of tangible fixed assets(84,235)(68,317)

Proceeds from sales of tangible fixed assets

1,072

314

Payments for purchases of intangible assets(2,535)(1,367)

Payments for purchases of marketable securities(11,731)(4,090)

Proceeds from sales and redemptions of marketable securities

112,000

136,614(724,634)(238,567)

Proceeds from sales and redemptions of investment securities

10,846

20,672

Investment in recoverable accounts under
production sharing (capital expenditures)(77,864)(82,915)

Decrease in short-term loans receivable

1,569

3,758

Long-term loans made

(1,134)(38,094)

Collection of long-term loans receivable

566

3,600

Payments for purchase of mining rights(28,044)―

Proceeds from transfer of mining rights

7,333

71,486

Other

2,424

(1,252)(844,511)(280,864)

521,619―

Decrease in short-term loans

―

(40)

Proceeds from long-term debt

56,28550,913

Repayments of long-term debt

(4,712)(4,316)

Proceeds from minority interests for additional shares

6,418

9,723

Cash dividends paid

(18,010)(21,922)

Dividends paid to minority shareholders(13,450)(4,991)

(92)

(71)

548,057

29,294

Effect of exchange rate changes on cash and cash equivalents(12,015)(2,663)

Net increase (decrease) in cash and cash equivalents(34,374)

66,458Cash and cash equivalents at beginning of the period

216,395

182,025

4

750

Payments for purchases of investment securities

Net cash used in investing activities
Cash flows from financing activities
Proceeds from issurance of common stock

Other
Net cash provided by financing activities

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of the period*118

182,025*1

249,233

(5) Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern
None(6) Basis of Presenting Consolidated Financial Statements
1. Scope of consolidation
Number of consolidated subsidiaries: 59
Names of major subsidiaries;
Japan Oil Development Co., Ltd., INPEX Alpha, Ltd., INPEX Natuna, Ltd., INPEX Sahul, Ltd., INPEX Southwest
Caspian Sea, Ltd., INPEX North Caspian Sea, Ltd., INPEX Browse, Ltd., INPEX Holdings Australia Pty Ltd, INPEX
Ichthys Pty Ltd, INPEX Masela, Ltd.
During this period:
Number of companies newly included in the scope of consolidation: 7
Number of companies excluded from the scope of consolidation: 1
Details for the above changes:
1) INPEX Holdings Australia Pty Ltd, INPEX Ichthys Pty Ltd, INPEX Operations Australia Pty Ltd, INPEX Babar Selaru
Ltd., INPEX Offshore North West Sabah, Ltd. and INPEX Offshore South West Sabah, Ltd. have been newly included
due to establishment of the companies.
2) INPEX Australia Pty Ltd has been newly included due to increase in materiality of the company.
3) INPEX Offshore Northeast Java, Ltd. has been excluded due to completion of liquidation.
Names of major non-consolidated subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C. V., TELNITE CO.,LTD.
(Reason for exclusion from the scope of consolidation)
Those companies are not consolidated because their total assets, total net sales, total net income (the equity portion) andtotal retained earnings (the equity portion) do not have significant impact on the consolidated financial statements.
Name of an entity that is not accounted for as our subsidiary even though the Company owns the majority vote:
Ichthys LNG Pty Ltd(Reason for not accounted for as our subsidiary)
The Company owns the majority vote of Ichthys LNG Pty Ltd through INPEX Holdings Australia Pty Ltd. However,since both parties’ affirmative votes are required for important resolutions based on the shareholders agreement between
INPEX Holdings Australia Pty Ltd and TOTAL E&P Holding Ichthys, Ichthys LNG Pty Ltd is considered to be an affiliate
accounted for by the equity method.
2. Application of equity method
Number of non-consolidated subsidiaries accounted for by the equity method: None
Number of affiliates accounted for by the equity method: 13
Names of major affiliates:
MI Berau B.V., INPEX Offshore North Campos, Ltd., Angola Japan Oil Co., Ltd., Ichthys LNG Pty Ltd
During this period:
Number of companies newly included as affiliates accounted for by the equity method due to establishment of thecompany: 1
Detail for the above change: Ichthys LNG Pty Ltd
Names of major non-consolidated subsidiaries and affiliates not accounted for by the equity method:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C.V., Telnite Co., Ltd., Tangguh project management Co.,Ltd.
(Reason for not applying the equity method)
These subsidiaries and affiliates are not accounted for by the equity method because their total net income (the equity
portion) and total retained earnings (the equity portion) do not have significant impact on the consolidated financial
statements.
Procedures for application of the equity method:
Regarding affiliates accounted for by the equity method having a different closing date from the consolidated closing date,19the Company used the financial statements of each affiliate prepared as of its closing date. For certain affiliates, however,
the Company used financial statements prepared for consolidation purposes as of the consolidated closing date.

3. Closing dates for the fiscal year of consolidated subsidiaries
For the 42 companies for which the closing dates differ from the consolidated closing date, including, but not limited to,
INPEX Sahul, Ltd. and INPEX Masela, Ltd., the Company uses the financial statements for the year ended December 31.
However, the necessary adjustments have been made to the financial statements of those companies to reflect any
significant transactions made between the Company’s closing date and those of the consolidated subsidiaries.
For the 11 companies including, but not limited, Japan Oil Development, Co., Ltd., INPEX Southwest Caspian Sea, Ltd.,and INPEX North Caspian Sea, Ltd., INPEX Holdings Australia Pty Ltd and INPEX Ichthys Pty Ltd, we use their financial
statements for the year ended the consolidated closing date even though their closing date is December 31.

4. Accounting policies
1) Valuation method for significant assets(a) Securities
Other securities
With a determinable market value
Other securities with a determinable market value are stated at fair value with any changes in unrealized holding gain or
loss, net of the applicable income taxes, included directly in net assets. Cost of securities sold is determined by themoving-average method.
Without a determinable market value
Other securities without a determinable market value are stated at cost determined by the moving-average method.
(b) Derivatives
Fair value(c) Inventories
Overseas inventories
Carried mainly at cost, determined by the average cost method (balance sheet value is carried at the lower of cost or
market)Domestic inventories
Carried mainly at cost, determined by the moving-average method (balance sheet value is carried at the lower of cost or
market)2) Depreciation method of significant depreciable assets(a) Tangible fixed assets (except leased assets)
Depreciation of mining facilities is mainly computed by the unit-of-production method. For other tangible fixed assets,straight-line method of depreciation is applied.
Useful lives of significant fixed assets are as follows:
Buildings and structures: 2-60 years
Wells: 3 years
Machinery, equipment and vehicles: 2-22 years(b) Intangible assets (except leased assets)
Exploration and development rights
Exploration and development rights at the exploration stage are fully amortized in the consolidated fiscal year. Such rights
which are at the production stage are amortized by the unit-of-production method.
Mining rights
Mining rights are mainly amortized by the unit-of-production method.
Other
Other intangible assets are mainly amortized by the straight-line method.
Software for internal use is amortized over 5 years.
(c) Leased assets
Leased assets for financing lease transactions whose ownership are not to be transferred:
Depreciation of these assets is calculated based on the straight-line method over the lease period assuming no residual
value.
3) Basis for significant allowances
20(a) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at an amount determined based on the historical experience of bad debt withrespect to ordinary receivables, plus an estimate of uncollectible amounts determined by reference to specific doubtfulreceivables from customers which are experiencing financial difficulties.
(b) Allowance for recoverable accounts under production sharing
Allowance for recoverable accounts under production sharing is provided for probable losses on specific investments
made under production sharing contracts.
(c) Allowance for investments in exploration
Allowance for investments in exploration is provided for future potential losses on investments in exploration companies
at an estimated amount based on the net assets of the investees.
(d) Provision for exploration projects
Provision for exploration projects is provided for future expenditures of consolidated subsidiaries at exploration stage
based on schedule of investments in exploration.
(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at expected payment amount for the year ended March 31, 2012.
(f) Accrued retirement benefits to employees
Accrued retirement benefits to employees are provided at the amount calculated based on the expected retirement benefit
obligation and the estimated value of pension plan assets at the end of this period. Because certain subsidiaries areclassified as small enterprises, we employ a simplified method (at the amount which would be required to be paid if allactive employees voluntarily terminated their employment as of the balance sheet date) for the calculation of theretirement benefit obligation of the subsidiaries.
Actuarial gains and losses are charged or credited to income as incurred.
(g) Accrued special repair and maintenanceAccrued special repair and maintenance are provided for planned major repair and maintenance activities on tanks incertain subsidiaries at the amount being accumulated through the next activity.
4) Translation of consolidated subsidiaries’ significant assets and liabilities denominated in foreign currencies into yen in
preparation of the consolidated financial statements
Monetary assets and liabilities denominated in foreign currencies are translated into yen at the exchange rates prevailingat the balance sheet date. The resulting exchange gain or loss is credited or charged to income.
The revenue and expense accounts of the overseas subsidiaries are translated into yen at the average rates of exchange
during the period. The balance sheet accounts are translated into yen at the rates of exchange in effect at the balance sheet
date. Translation differences are presented as a component of translation adjustments and minority interests.
5) Accounting for major hedge transactions(a) Hedge accounting
The deffered hedge accounting method is used to process hedging transactions. Simplified accounting method is applied
to interest rate swaps.
(b) Hedging instruments and hedged items(Foreign currency)
Hedge instruments: Foreign exchange forward transactions
Hedged items: Forecasted transactions in foreign currencies(Interest rate)
Hedge instruments: Interest rate swap transactions
Hedged items: Interest payments on borrowings(c) Hedging policy
The nominal amount of the derivative transaction is limited to within the scope of actual demand, and the Company does
not engage in speculative derivative transactions.
(d) Hedge effectiveness assessment method
The Company does not perform hedge effectiveness assessment of foreign exchange forward transactions since the main
conditions match with forecasted transactions in foreign currencies. The Company does not perform hedge effectivenessassessment since simplified accounting method is applied.
6) Amortization of Goodwill
Goodwill is amortized by the straight-line method over 20 years.
7) Scope of cash and cash equivalents in consolidated statement of cash flow
21

Cash (cash and cash equivalents) in the consolidated statement of cash flow consisted of cash on hand, cash in banks
which can be withdrawn on demand, and short-term investments with a maturity of three months or less when purchased
which can easily be converted to cash and are subject to little risk of change in value.
8) Other items important to the preparation of the consolidated financial statements(a) Consumption tax
Transactions subject to the consumption tax are recorded at amounts exclusive of the consumption tax.
(b) Recoverable accounts under production sharing
Cash investments made by the Company during exploration, development and production phases under a production
sharing contract are recorded as “Recoverable accounts under production sharing” so long as they are recoverable under
the terms of the relevant contract. When the Company receives crude oil and natural gas in accordance with the contract,
an amount corresponding to the purchase costs of the products (i.e., a cost recovery portion of the investments) is released
from this account.

22

(Changes in the Presentation)(Consolidated Statements of Income)“Gain on change in equity”, previously presented separately in other income, is included in “Other” since it has become lesssignificant. As a result, ¥3,644 million which was recorded as “Gain on change in equity” in other income on the consolidated
statements of income in the previous fiscal year is included in “Other”.
“Provision of allowance for doubtful accounts”, previously presented separately in other expenses, is included in “Other” since
it has become less significant. As a result, ¥9,132 million which was recorded as “Provision of allowance for doubtful
accounts” in other expenses on the consolidated statements of income in the previous fiscal year is included in “Other”.
(Consolidated Statements of Cash Flows)“Provision for allowance for doubtful accounts”, previously presented separately in cash flows from operating activities, isincluded in “Other provisions” since it has become less significant. As a result, ¥12,924 million which was recorded as“Provision for allowance for doubtful accounts” in cash flows from operating activities on the consolidated cash flows in theprevious fiscal year is included in “Other provisions”.
(Additional information)
For the accounting changes and error corrections made in after the beginning of the year ended March 31, 2012, the Company
applies “Accounting Standard for Accounting Changes and Error Corrections” (ASBJ Statement No.24 December 4, 2009)
and “Guidance on Accounting Standard for Accounting Changes and Error Corrections” (ASBJ Guidance No.24 December 4,2009).

23

更新日時:2012/05/10 18:03:00

ファイル名:④-2H24.3b連結BSPLCF注記【済】.doc

印刷日時:12/05/10 18:11(7) Notes to Consolidated Financial Statements(Consolidated Balance Sheets)*1 Major accounts included in inventories
As of March 31, 2011

As of March 31, 2012

Millions of yen

Millions of yen

4,952

4,797

238

82

6,946

7,097

Merchandise and finished goods
Work in process
Raw materials and supplies*2 Accumulated depreciation of tangible fixed assets
As of March 31, 2011
Accumulated depreciation of tangible fixed assets

As of March 31, 2012

¥530,777 million¥567,304 million*3 The Company has the following investments in subsidiaries and affiliates.
As of March 31, 2011

As of March 31, 2012

Millions of yen

Millions of yen

38,881

71,700―25,618121

77

Investment securities (equities)(of which investment in jointly controlled entities)
Other (investments and other assets)*4 Assets provided as collateral and collateral-backed debt are as follows:Collateralized Assets
As of March 31, 2011

As of March 31, 2012

Millions of yen

Millions of yen

Buildings and structures

2,140 (2,140)

2,250 (2,250)

Wells

4,774 (4,774)

2,737 (2,737)

Machinery, equipment and vehicles

9,048 (9,048)

9,190 (9,190)

660 (660)

― (―)

Land
Other (tangible fixed assets)
Investment securities
Other (investments and other assets)
Total

24

0 (0)

0 (0)

8,236 (―)

7,632 (―)

238 (―)

231 (―)

25,099 (16,623)

22,041 (14,177)

更新日時:2012/05/10 18:03:00

ファイル名:④-2H24.3b連結BSPLCF注記【済】.doc

印刷日時:12/05/10 18:11

Secured debt
As of March 31, 2011

As of March 31, 2012

Millions of yen

Millions of yen

Short-term loans

2,130 (2,114)

1,588 (1,572)

Accounts payable-other

3,992 (3,691)

5,090 (4,783)

Long-term debt

4,022 (3,955)

2,434 (2,383)

16 (―)

16 (―)

10,162 (9,760)

9,129 (8,738)

Others (long-term liabilities)
Total

Amounts in parentheses () above represent foundation collateral and liabilities. In addition, the followings are pledged ascollateral for the BTC pipeline project financing.
As of March 31, 2011
Investment securities

As of March 31, 2012

¥4,928 million¥4,703 million*5 Accumulated advanced depreciation deducted from acquisition costs of fixed assets related to contribution and others
As of March 31, 2011

As of March 31, 2012

Millions of yen

Millions of yen

1,374

1,387

Machinery, equipment and vehicles

259

259

Land

―

56

Other (intangible assets)

1

1

Building and structures

6 Contingent liabilities
The Company and its consolidated subsidiaries are contingently liable as guarantors of indebtedness of the following
companies:
As of March 31, 2011

As of March 31, 2012
Millions of yen

Millions of yen

Tangguh Trustee*

15,536

Tangguh Trustee*

14,510Fujian Tranche *Sakhalin Oil and Gas Development
Co., Ltd.

5,507

Ichthys LNG Pty Ltd

5,190

4,051

Fujian Tranche *5,143

INPEX Offshore North Campos, Ltd.

2,613

Sakata Natural Gas Co., Ltd.

106

Sakhalin Oil and Gas Development
Co., Ltd.
INPEX Offshore North Campos, Ltd.

Employees (housing loans)254

Employees (housing loans)

28,069 Total
Total*Debt for investment funds of Tangguh LNG project through MI Berau B. V. and MI Berau Japan Ltd.

25

3,866
2,151
212
31,074

更新日時:2012/05/10 18:03:00

ファイル名:④-2H24.3b連結BSPLCF注記【済】.doc

印刷日時:12/05/10 18:11(Consolidated Statements of Income)*1. Major accounts included in selling, general and administrative expenses are as follows:
For the year ended
March 31, 2011

For the year ended
March 31, 2012

Millions of yen

Millions of yen

Personnel expenses

14,51816,049Including provision for accrued retirement benefits to employees

712

529

Including provision for accrued bonuses to officers

144

135

Taxes

5,928

7,100

Freight expenses

6,666

6,074

Depreciation expenses

22,25021,898

Amortization of goodwill

6,760

6,760

*2. Research and development expenses included in general and administrative expenses:
For the year ended
March 31, 2011

For the year ended
March 31, 2012¥449 million¥401 million(Consolidated Statements of Comprehensive Income)For the year ended March 31, 2012
*1 Amount of recycling and amount of income tax effect associated with other comprehensive income
Millions of yen
Unrealized holding gain on securities
Amount recognized during this period

5,081

Amount of recycling

538

Before income tax effect adjustment

5,620

Amount of income tax effect(121)

Unrealized holding gain on securities

5,498

Unrealized gain from hedging instruments
Amount recognized during this period

6,455

Amount of income tax effect(2,337)

Unrealized gain from hedging instruments

4,118Translation adjustments
Amount recognized during this period

2,082

Share of other comprehensive income of associates accounted for by the equity method
Amount recognized during this period(1,134)
Total other comprehensive income

26

10,564

更新日時:2012/05/10 18:03:00

ファイル名:④-2H24.3b連結BSPLCF注記【済】.doc

印刷日時:12/05/10 18:11(Consolidated Statements of Changes in Net Assets)
For the year ended March 31, 2011
1. Type and number of shares issued and outstanding and treasury stock
Balance as ofApril 1, 2010

(Shares)

Increase

Balance as ofMarch 31, 2011

Decrease

Number of shares
Common stockSpecial class share
Total

2,358,409

1,297,400―

3,655,809

1

―

―

1

2,358,410

1,297,400―

3,655,810

4,916

―

―

4,916

Treasury stock
Common stock

Total
4,916
4,916
―
―
Note: An increase in common stock of 1,297,400 shares is due to offering new shares by 1,216,000 shares and thethird-party allotment by 81,400 shares, respectively.
2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders
June 23, 2010
Board of directors’
meetingNovember 4, 2010

Type ofshare
Commonstock
Specialclass share
Commonstock
Specialclass share

Cash dividends paid
(Millions of yen)

Dividends
per share
(Yen)

7,060

3,000

March 31, 2010

June 24, 2010

0

3,000

March 31, 2010

June 24, 2010

10,9523,000

September 30, 2010

December 1, 2010

0

3,000

September 30, 2010

December 1, 2010

Record date

Effective date(2) Dividends, of which the record date was in the year ended March 31, 2011, and whose effective date will be in thenext fiscal year
Cash dividends
Dividends
Type of
Source of
Resolution
paid
per share
Record date
Effective dateshare
dividends(Millions of yen)
(Yen)
CommonRetained
10,9523,000 March 31, 2011
June 29, 2011
Ordinary generalstockearnings
meeting ofSpecialshareholders
Retainedclass
03,000 March 31, 2011
June 29, 2011
June 28, 2011
earnings
share27

更新日時:2012/05/10 18:03:00

ファイル名:④-2H24.3b連結BSPLCF注記【済】.doc

印刷日時:12/05/10 18:11

For the year ended March 31, 2012
1. Type and number of shares issued and outstanding and treasury stock
Balance as ofApril 1, 2011

(Shares)

Increase

Balance as ofMarch 31, 2012

Decrease

Number of shares
Common stockSpecial class share

3,655,809――

3,655,809

1

―

―

1

3,655,810――

3,655,810

Common stock

4,916

―

―

4,916

Total

4,916

―

―

4,916

Total
Treasury stock

2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders
June 28, 2011
Board of directors’
meetingNovember 4, 2011

Type ofshare
Commonstock
Specialclass share
Commonstock
Specialclass share

Cash dividends paid
(Millions of yen)

Dividends
per share(Yen)

10,952

3,000

March 31, 2011

June 29, 2011

0

3,000

March 31, 2011

June 29, 2011

10,9523,000

September 30, 2011

December 1, 2011

0

3,000

September 30, 2011

December 1, 2011

Record date

Effective date(2) Dividends, of which the record date was in the year ended March 31, 2012, and whose effective date will be in thenext fiscal year
Cash dividends
Dividends
Type of
Source of
Resolution
paid
per share
Record date
Effective dateshare
dividends(Millions of yen)
(Yen)
CommonRetained
14,6034,000 March 31, 2012
June 27, 2012
Ordinary generalstockearnings
meeting ofSpecialshareholders
Retainedclass
0
4,000 March 31, 2012
June 27, 2012
June 26, 2012
earnings
share28

更新日時:2012/05/10 18:03:00

ファイル名:④-2H24.3b連結BSPLCF注記【済】.doc

印刷日時:12/05/10 18:11(Consolidated Statements of Cash Flows)*1 Cash and cash equivalents at the end of the period are reconciled to the account reported in the consolidated balance sheet
as follows:
For the year ended
March 31, 2011
Millions of yen
Cash and deposits

For the year ended
March 31, 2012
Millions of yen

112,395

275,903

Time deposits for more than three months and others(266)(84,664)

Marketable securities (commercial paper)

50,99154,495Marketable securities (MMF and others)

7,804

699

Marketable securities (certificate of deposit)

11,1002,800

Cash and cash equivalents

182,025

249,233

2 Assets and liabilities which the Company has transferred to Ichthys LNG Pty Ltd, a jointly controlled entity, by in-kind
contribution are as follows:

Current assets
Fixed assets

Millions of yen
534
34,217

Total assets
Current liabilities

34,751
477

Total liabilities

477

29

更新日時:2012/05/10 11:17:00

ファイル名:④-3H24.3cセグメント情報等【済】.doc

印刷日時:12/05/10 14:31(Segment Information)
1.

Overview of reportable segments

For the Company’s oil and natural gas development activities, the Board of Directors make the Group management decisions
with respect to each mining area and others, the separate financial information of which is available.
The Company operates oil and natural gas businesses globally, thus, the Company’s reportable segments are entities of individual
mining areas and others aggregated by geographical region. These are classified into following segments: “Japan”, “Asia &Oceania” (principally Indonesia, Australia and East Timor), “Eurasia (Europe & NIS)” (principally Azerbaijan), “Middle East &Africa” (principally UAE) and “Americas.”
The Company produces oil and natural gas in each segment. In addition, the Company conducts marketing activities for petroleum products and others in “Japan” segment.

2. Methods of calculating of sales and income (loss), identifiable assets, and other items by reportable segment
Accounting method for reportable segment is the substantially same as presentations on “Basis of Presenting Consolidated Financial Statements.”

3.

Information on sales and income (loss), identifiable assets, and other items by reportable segment

For the year ended March 31, 2011 (April 1, 2010 through March 31, 2011)(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

104,524

406,827

68,318350,735

12,673

943,080―

943,080

―

―

―

―

―

―

―

―

Total

104,524

406,827

68,318350,735

12,673

943,080―

943,080

Segment income (loss)

25,959235,81436,460243,112(3,035)538,311(8,569)529,742

Segment assets

240,238

432,323

503,471

245,865

68,022

1,489,921

1,190,458

2,680,379

Total

*1

*2

Net sales(1) Sales to third parties(2) Intercompany sales
and transfers between
segments

Other items
Depreciation and amor18,456
17,468
9,013
5,111
2,914
52,964
1,280
54,245tization
Amortization of good(0)
(192)
(192)
6,952
6,760
―
―
―
will
Investment to affiliates
20,066
7,083
5,120
32,27032,270―――accounted for by theequity method
Increase of tangible
fixed assets and in25,696
45,97328,361
10,838
2,929
113,799565
114,365
tangible assets
Note: 1. (1) Adjustments of segment income of ¥(8,569) million include elimination of intersegment transactions of ¥232 million
and corporate expenses of ¥(8,801) million. Corporate expenses are mainly amortization of goodwill not attributable
to a reportable segment and general administrative expenses.
(2) Adjustments of segment assets of ¥1,190,458 million include elimination of intersegment transactions of ¥(2,935)
million and corporate assets of ¥1,193,394 million. Corporate assets are mainly goodwill, cash and deposit, marketable securities and investment securities concerned with the administrative divisions.
(3) Adjustments of depreciation and amortization of ¥1,280 million consist mainly of depreciation of corporate assets.
(4) Adjustments of amortization of goodwill of ¥ 6,952 million consist of amortization of goodwill not attributable to areportable segment.
(5) Adjustments of increase of tangible fixed assets and intangible assets of ¥565 million consist mainly of capital expenditure to corporate assets.
2. Segment income was reconciled with consolidated operating income.

30

更新日時:2012/05/10 11:17:00

ファイル名:④-3H24.3cセグメント情報等【済】.doc

印刷日時:12/05/10 14:31

For the year ended March 31, 2012 (April 1, 2011 through March 31, 2012)(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

113,662

483,187

84,325500,0325,524

1,186,731―

1,186,731

―

―

―

―

―

―

―

―

Total

113,662

483,187

84,325500,0325,524

1,186,731―

1,186,731

Segment income (loss)

24,606

299,598

47,075354,135(5,517)

719,899(10,542)

709,357

Segment assets

260,596445,735

515,537

198,987

67,9281,488,784

1,577,613

3,066,397

Total

*1

*2

Net sales(1) Sales to third parties(2) Intercompany sales
and transfers between
segments

Other items
Depreciation and amor18,485
12,774
8,502
6,550
373
46,686
1,339
48,026
tization
Amortization of good(192)
(192)
6,952
6,760
―
―
―
―
will
Investment to affiliates
49,156
6,859
9,606
65,621
65,621―――accounted for by theequity method
Increase of tangible
fixed assets and in35,954
27,146518
10,387
2,956
76,963
2,105
79,068tangible assets
Note: 1. (1) Adjustments of segment income of ¥(10,542) million include elimination of intersegment transactions of ¥229 million and corporate expenses of ¥(10,771) million. Corporate expenses are mainly amortization of goodwill not attributable to a reportable segment and general administrative expenses.
(2) Adjustments of segment assets of ¥1,577,613 million include elimination of intersegment transactions of ¥(2,744)
million and corporate assets of ¥1,580,357 million. Corporate assets are mainly goodwill, cash and deposit, marketable securities and investment securities concerned with the administrative divisions.
(3) Adjustments of depreciation and amortization of ¥1,339 million consist mainly of depreciation of corporate assets.
(4) Adjustments of amortization of goodwill of ¥ 6,952 million consist of amortization of goodwill not attributable to areportable segment.
(5) Adjustments of increase of tangible fixed assets and intangible assets of ¥2,105 million consist mainly of capital
expenditure to corporate assets.
2. Segment income was reconciled with consolidated operating income.

(Relative information)
For the year ended March 31, 2011 (April 1, 2010 through March 31, 2011)
1. Products and service information(Millions of yen)
Crude oil
557,910

Sales to third parties

Natural gas (excluding LPG)
334,650

LPG

Other

21,597

Total

28,921

943,080

2. Geographical information(1) Sales(Millions of yen)Japan

Asia & Oceania
573,131

Other

346,717

Total
23,231

Note: Sales by geographical area is determined based upon the final destination and customer.

31

943,080

更新日時:2012/05/10 11:17:00

ファイル名:④-3H24.3cセグメント情報等【済】.doc

印刷日時:12/05/10 14:31(2) Tangible fixed assets(Millions of yen)Japan

Australia
211,087

Other
96,500Total
72,273379,861

3. Information by major customer(Millions of yen)
Customer

Sales

Relative reportable segment

PERTAMINA

254,542

Asia & Oceania

For the year ended March 31, 2012 (April 1, 2011 through March 31, 2012)
1. Products and service information(Millions of yen)
Crude oil
726,222

Sales to third parties

Natural gas (excluding LPG)
404,735

LPG

Other

24,330Total

31,443

1,186,731

2. Geographical information(1) Sales(Millions of yen)
Asia & Oceania(excluding Singapore)Japan591,214Singapore

420,183

Other

135,759

Total
39,574

1,186,731

Note: Sales by geographical area is determined based upon the final destination and customer.

(2) Tangible fixed assets(Millions of yen)Japan

Australia
229,888

Other
77,980Total
75,828383,697

3. Information by major customer(Millions of yen)
Customer

Sales

PERTAMINA

Relative reportable segment
245,942

Asia & Oceania(Information on impairment loss from fixed assets by reportable segment)
Disclosure has been omitted because it does not have significant impact on the consolidated financial statements.

32

更新日時:2012/05/10 11:17:00

ファイル名:④-3H24.3cセグメント情報等【済】.doc

印刷日時:12/05/10 14:31(Information on amortization of goodwill and unamortized balance by reportable segment)
For the year ended March 31, 2011 (April 1, 2010 through March 31, 2011)(Millions of yen)
Reportable segments
Japan

Asia &
Oceania

Eurasia(Europe & NIS)

Middle East
& Africa

Americas*1

Total

Eliminations
and other
*2

Total

Balance as of――――(2,931)(2,931)
104,294
101,362
March 31, 2011
Note: 1. This is the unamortized balance of negative goodwill acquired before April 1, 2010 and net amount of goodwill is statedon the balance sheet.
2. This is the unamortized balance of goodwill not attributable to a reportable segment.
3. Please refer to “Segment information” regarding to the amounts of amortization of goodwill.
For the year ended March 31, 2012 (April 1, 2011 through March 31, 2012)(Millions of yen)
Reportable segments
Japan

Asia &
Oceania

Eurasia(Europe & NIS)

Middle East
& Africa

Americas*1

Total

Eliminations
and other
*2

Total

Balance as of――――(2,739)(2,739)97,341
94,601March 31, 2012
Note: 1. This is the unamortized balance of negative goodwill acquired before April 1, 2010 and net amount of goodwill is statedon the balance sheet.
2. This is the unamortized balance of goodwill not attributable to a reportable segment.
3. Please refer to “Segment information” regarding to the amounts of amortization of goodwill.

(Information on negative goodwill by reportable segment)
None

33

ファイル名:(Financial Instruments)
1. Status of financial instruments
For the year ended March 31, 2011
(1) Policy regarding financial instruments
The Company raises funds for oil and gas exploration, development and production, construction or expansion of domestic
pipelines and LNG receiving terminal primarily from cash flow on hand and from bank loans. Oil and gas development
projects are primarily funded from long-term loans that the Company has secured from the Japan Bank of International Cooperation and Japanese commercial banks. Japan Oil, Gas and Metals National Corporation have provided guarantees for the
principal on certain outstanding amounts of the Company’s long-term loans. The Development Bank of Japan and Japanesecommercial banks have been providing long-term loans for the construction or expansion of domestic pipelines and LNG receiving terminal. The Company generally borrows with variable interest rates, while some loans are with fixed interest ratedepending on the nature of each project. Regarding the financing policy, the Company manages funds mainly from cash on
hand and government bonds, which are considered of low-risk and high-liquidity. The Company does not engage in speculative derivative transactions to prevent risks hereinafter described below.
(2) Details of financial instruments, associated risk and risk management(Credit risks related to trade receivables)
Trade receivables ―accounts receivable-trade and accounts receivable-other ― are comprised mainly from sales of oil andnatural gas. Main trading partners are national oil companies, major oil companies and others. In line with criteria for trading
and credit exposure management, the Company properly analyzes the status of trading partners for early detection and reduction of default risks.
(Market price fluctuation risk related to securities)
For marketable securities and investment securities exposed to market price fluctuation risk, analysis of market values is regularly reported to the Management Committee. For stocks, the Company holds the shares of trading partners and others to establish close and smooth relationship for the purpose of medium- to long-term stable business. Of these shares, the Company
partially holds for the purpose of investment. As for bonds, the Company mainly holds government bonds with short-term
maturities to reduce market price fluctuation risk.
(Interest rate fluctuation risk related to short-term loans and long-term debt)
Loans are mainly for fund for oil and natural gas exploration projects and construction or expansion of domestic pipelinesand LNG receiving terminal and others. The borrowing period is determined considering financial prospects of the projectand useful lives of facilities. Loans with variable interest rates are exposed to interest rate fluctuation risk, however, theCompany leverages in line with the above policy. Loans with fixed interest rate include fixed interest expenses under special
treatment of interest rate swaps.
(Exchange rates fluctuation risk related to assets and liabilities in foreign currencies)
As the most of the Company’s business consists of overseas business, the Company is exposed to exchange fluctuation risk
due to a large portion of monetary assets and liabilities held in foreign currencies such as cash and deposits, accounts receivables and loans required in overseas projects. As a result of fiscal year-end conversion, yen appreciation causes foreign exchange loss on assets and foreign exchange gain on liabilities while yen depreciation causes foreign exchange gain on assets
and foreign exchange loss on liabilities. For this reason, foreign exchange gain and loss are offset and maintains the position
between assets and liabilities in foreign currencies. At present, the Company is in the position of incurring foreign exchange
loss when foreign exchange rate proceeds to yen appreciation. The Company timely converts to the yen to avoid excess holding of foreign currency deposits on hand as well as engages in hedge transactions, based on the Company policy, partly using
foreign currency forward exchange contracts as necessary for expected foreign currency trading.
(Management of derivative transactions)
For the above derivative transactions such as interest rate swap transactions and forward exchange contracts, the Company
follows derivative transactions management outline. Further, the Company only transacts with financial institutions with highcredit ratings to reduce credit risks for the use of derivatives.
(Management of the liquidity risk related to financing)
The finance unit controls cash management based on monthly financing plan prepared by each project division and securesufficient liquidity on hand to be prepared for liquidity risks.
(3) Supplementary explanation of items related to the market value of financial instruments
For nominal amounts and others regarding derivative transactions on “Derivatives Transactions”, its amounts do not indicate
market risks related to derivative transactions.

34

ファイル名:For the year ended March 31, 2012
(1) Policy regarding financial instruments
The Company raises funds for oil and gas exploration, development and production, construction or expansion of domestic
pipelines and LNG receiving terminal primarily from cash flow on hand and from bank loans. Oil and gas development
projects are primarily funded from long-term loans that the Company has secured from the Japan Bank of International Cooperation and Japanese commercial banks. Japan Oil, Gas and Metals National Corporation have provided guarantees for the
principal on certain outstanding amounts of the Company’s long-term loans. The Development Bank of Japan and Japanesecommercial banks have been providing long-term loans for the construction or expansion of domestic pipelines and LNG receiving terminal. The Company generally borrows with variable interest rates, while some loans are with fixed interest ratedepending on the nature of each project. Regarding the financing policy, the Company manages funds mainly from cash on
hand and government bonds, which are considered of low-risk and high-liquidity. The Company limits derivative transactions for managing risks of forecasted transactions and portfolio assets, and does not engage in speculative derivative transactions.
(2) Details of financial instruments, associated risk and risk management(Credit risks related to trade receivables)
Trade receivables ―accounts receivable-trade and accounts receivable-other ― are comprised mainly from sales of oil andnatural gas. Main trading partners are national oil companies, major oil companies and others. In line with criteria for trading
and credit exposure management, the Company properly analyzes the status of trading partners for early detection and reduction of default risks.
(Market price fluctuation risk related to securities)
For marketable securities and investment securities exposed to market price fluctuation risk, analysis of market values is regularly reported to the Management Committee. For stocks, the Company holds the shares of trading partners and others to establish close and smooth relationship for the purpose of medium- to long-term stable business. Of these shares, the Company
partially holds for the purpose of investment. As for bonds, the Company mainly holds bonds with short-term maturities byconsidering medium- to long-term cash outflow forecast and market price fluctuation risk.
(Interest rate fluctuation risk related to short-term loans and long-term debt)
Loans are mainly for fund for oil and natural gas exploration projects and construction or expansion of domestic pipelinesand LNG receiving terminal and others. The borrowing period is determined considering financial prospects of the projectand useful lives of facilities. Loans with variable interest rates are exposed to interest rate fluctuation risk, however, theCompany analyzes the impact of interest rate fluctuation at the time of borrowing and once a year, and leverages fixed-rateloans or makes interest rate swap contracts with financial institutions as necessary.
(Exchange rates fluctuation risk related to assets and liabilities in foreign currencies)
As the most of the Company’s business consists of overseas business, the Company is exposed to exchange fluctuation risk
due to a large portion of monetary assets and liabilities held in foreign currencies such as cash and deposits, accounts receivables and loans required in overseas projects. As a result of fiscal year-end conversion, yen appreciation causes foreign exchange loss on assets and foreign exchange gain on liabilities while yen depreciation causes foreign exchange gain on assets
and foreign exchange loss on liabilities. For this reason, foreign exchange gain and loss are offset and maintains the position
between assets and liabilities in foreign currencies. At present, the Company is in the position of incurring foreign exchange
loss when foreign exchange rate proceeds to yen appreciation. The Company manages assets in foreign currencies to avoid
excess holding of them in comparison with liabilities in foreign currencies. Regarding those planned expenditures in foreign
currencies mainly for Ichthys project, the Company manages exchange fluctuation risk through derivative transactions suchas forward foreign exchange transactions, currency swaps and others as necessary.
(Management of derivative transactions)
For the above derivative transactions, the Company follows derivative transactions management outline. For derivativetransactions exposed to market price fluctuation, market values of these derivatives are regularly reported to the Management
Committee, and the Company only transacts with financial institutions with high credit ratings to reduce counterparty risks
for the use of derivatives.
(Management of the liquidity risk related to financing)
The finance unit controls cash management based on monthly financing plan prepared by each project division and securesufficient liquidity on hand to be prepared for liquidity risks.
(3) Supplementary explanation of items related to the market value of financial instruments
For nominal amounts and others regarding derivative transactions on “Derivatives Transactions”, its amounts do not indicate
market risks related to derivative transactions.

35

ファイル名:2.

Fair value of financial instruments
Carrying value on the consolidated balance sheets as of March 31, 2011 and 2012, fair value and their unrealized loss are asshown below. Items for which is extremely difficult to determine market value are not included in the following table (Pleaserefer to Note 2).
As of March 31,2011(1) Cash and deposits(2) Accounts receivable-trade(3) Marketable securities and investment
securities
Total assets(1) Short-term loans(2) Long-term debt
Total liabilities
Derivatives(Millions of yen)
Carrying value
112,395
95,391
1,111,005

Fair value
112,395
95,391
1,111,005

1,318,792
4,441
268,706
273,147－

1,318,792
4,483
270,572
275,056－

As of March 31,2012

Unrealized loss
－
－
－
－
42
1,865
1,908
－

(Millions of yen)

Carrying value
Fair value
Unrealized loss
(1) Cash and deposits
275,903
275,903－(2) Accounts receivable-trade119,459
119,459－(3) Marketable securities and investment
1,180,509
1,180,509－
securities
Total assets
1,575,872
1,575,872－(1) Short-term loans
4,801
4,830
28
(2) Long-term debt
313,972
316,131
2,158
Total liabilities
318,774
320,961
2,186
7,338
7,338
Derivatives (*)－(*) Net claims and debts arising from derivative transactions are presented on a net basis. In case the total amount is adebt amount, the above figure is negative.
Note 1: Methods of calculating of the fair value of financial instruments
Assets(1) Cash and deposits, and (2) Accounts receivable-trade
Since these items are settled in a short period of time and their fair values are almost the same as their carrying values, therelevant carrying values are used.
(3) Marketable securities and investment securities
The fair value of shares are determined by the market prices of exchanges, and the fair value for bonds are determined bymarket prices of exchanges or the prices presented by financial institutions. For further information on investment securitiesof each holding purpose, please refer to “Securities” section of the notes to financial statements.
Liabilities(1) Short-term loans
The fair value of current portion of long-term debt included in short-term loans, is calculated by the same method as (2)Long-term debt. For the other short-term loans, the relevant carrying value is used since these items are settled in a short periods of time and its market value is almost the same as the carrying value.
(2)Long-term debt
The fair value of long-term debt is calculated by applying a discount rate to the total of principal and interest. The discountrate is based on the assumed interest rate if a similar new loan is entered into.
Derivatives
Please refer to “Derivative transactions” section of notes to financial statements.

36ファイル名:

Note 2: Carrying value of financial instruments for which it is extremely difficult to determine market value(Millions of yen)
As of March 31, 2011
As of March 31, 2012
Unlisted securities
27,81928,395Preferred securities
5,000
5,000
Stocks of subsidiaries and affiliates
38,881
71,700
These financial instruments are assumed to have no market value and require excessive costs to estimate future cash flows, accordingly, these financial instruments are not included in “Assets (3) Marketable securities and investment securities”. For sharesof exploration companies among unlisted securities and stocks of subsidiaries and affiliates, the allowance is provided for investments in exploration at an estimated amount based on the financial position of the investees.
Note 3: Redemption schedules for monetary assets securities with maturity dates subsequent to March 31, 2011 and 2012 are as
follows
As of March 31,2011(Millions of yen)

112,395
95,391More than 1 year
but less than 5
years
－
－

More than 5
years but lessthan 10 years－－

133,000
3,500
51,000
11,100406,386

526,500
33,50033,445
198,145
791,590

41,500－－－41,500275,903
119,459

More than 1 year
but less than 5
years
－
－

More than 5
years but lessthan 10 years－－

335,500－
54,5006,890
792,252

375,000
63,50033,185
198,100
669,785

39,500－－－39,5001 year or less
Cash and deposits
Accounts receivable-tradeMarketable securities and investment
securities
Other securities:
Public bonds
Corporate bonds
Other bonds
Other
Total
As of March 31,2012

－
－

－
－
－
－
－
(Millions of yen)

1 year or less
Cash and deposits
Accounts receivable-tradeMarketable securities and investment
securities
Other securities:
Public bonds
Corporate bonds
Other bonds
Other
Total

More than 10
years

More than 10
years
－
－

－
－
－
－
－

Note 4: Maturities for long-term loans payable and leased liabilities subsequent to March 31, 2011 and 2012 are as follows
As of March 31,2011(Millions of yen)
1 year or lessLong-term debt
Lease obligations
Total

4,281
62
4,344

More than 1 year
but less than 5
years
19,156
117
19,273More than 5
years but lessthan 10 years
136,5061
136,507

As of March 31,2012

113,044－
113,044(Millions of yen)
1 year or lessLong-term debt
Lease obligations
Total

More than 10
years

4,681
52
4,734

37

More than 1 year
but less than 5
years
47,82796
47,924More than 5
years but lessthan 10 years
114,311
1
114,313More than 10
years
151,833－
151,833

ファイル名:(Securities)
1. Other securities as of March 31, 2011 and 2012
As of March 31,2011
Type of securities

Acquisition costs

Securities whose carrying value exceed their acquisition costs(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Securities whose acquisition costs exceed their carrying value(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Total

Carrying value

42,52149,876

7,355

336,349
8,500
－
6,732
394,102336,983
8,503
－
7,693
403,057

633
3
－
961
8,954

10,535

8,663△1,871

374,128
28,50884,863
217,236715,272
1,109,374

372,900
28,334
83,933214,116
707,948
1,111,005△1,227△174△929△3,119△7,323
1,630

As of March 31,2012
Type of securities

Acquisition costs

Securities whose carrying value exceed their acquisition costs(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Securities whose acquisition costs exceed their carrying value(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Total

38(Millions of yen)
Unrealized gain
(loss)

Carrying value(Millions of yen)
Unrealized gain
(loss)

4,499

9,317

4,818

726,075
23,50037,395204,961
996,432

727,734
23,58837,503
209,955
1,008,098

1,658
88
107
4,993
11,66647,93944,103△3,83530,19040,00050,882
7,817
176,829
1,173,261

29,95039,77850,843
7,734
172,410
1,180,509

△239
△221
△39
△82
△4,4187,248

ファイル名:2. Other securities sold for the years ended March 31, 2011 and 2012
For the year ended March 31,2011
Type of securities(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) OtherTotal
For the year ended March 31,2012
Type of securities(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Total

Proceeds from sales
767

Gain on sales
137(Millions of yen)
Loss on sales
55

10,079－－－10,846

－
－
－
－
137

384
－
－
－
440

Proceeds from sales－
41,394－－－
41,394

39－(Millions of yen)
Loss on sales
－

82
－
－
－
82

－
－
－
－
－

Gain on sales

ファイル名:(Derivative Transactions)
1. Derivatives not subject to hedge accounting(1) Derivatives related to foreign currency
As of March 31, 2011
None
As of March 31, 2012
Type of derivatives

Contract
amounts

Due after one
year

Fair value

Over-the-counter
Currency swap
31,996882－transactionstransactions(*) Fair value is calculated based on the price obtained from the counterparty financial institutions.

(Millions of yen)
Valuation gain
(loss)
882

2. Derivatives subject to hedge accounting(1) Derivatives related to foreign currency
As of March 31, 2011
None
As of March 31, 2012
Hedge accounting
method(Millions of yen)

Principal items
Contract
Due after one
Type of derivatives
hedgedamountsyear
Foreign exchange
Forecasted
Deferred hedge
forwards
transactions
108,577－
accountingLongin foreign
USD
currencies(*) Fair value is calculated based on the price obtained from the counterparty financial institutions.

Fair value
6,455(2) Derivatives related to interest rate
As of March 31, 2011
Hedge accounting
method(Millions of yen)Type of derivatives

Principal
items hedged

Contract
amounts

Due after one
year

Fair value

Interest rate swaps
Long-term(*)
payment fixed,
8,300
6,240
debt
receipt fluctuated(*) Fair value of derivatives for which special treatment of interest rate swaps is applied is included to the fair value of
long-term debt since it is a part of the long-term debt.

Special treatment ofinterest rate swaps

As of March 31, 2012
Hedge accounting
method(Millions of yen)Type of derivatives

Principal
items hedged

Contract
amounts

Due after one
year

Fair value

Interest rate swaps
Long-term(*)
payment fixed,
6,240
4,820
debt
receipt fluctuated(*) Fair value of derivatives for which special treatment of interest rate swaps is applied is included to the fair value of
long-term debt since it is a part of the long-term debt.

Special treatment ofinterest rate swaps

40

(Business Combination)
1. Transaction under common control(1) Summary of the transaction(a) Names and nature of business of parties to the business combination
Names of parties to the business combination : INPEX Browse, Ltd., INPEX Holdings Australia Pty Ltd, INPEX Ichthys
Pty Ltd and INPEX Operations Australia Pty Ltd
Nature of business : Exploration and development of oil and natural gas in WA-37-R block(*) in offshore Western Australia(b) Date of the business combination
July 1, 2011(c) Legal form of the business combination
INPEX Browse, Ltd. made a contribution in kind to INPEX Holdings Australia Pty Ltd. Meanwhile INPEX Holdings
Australia Pty Ltd made a contribution in kind to INPEX Ichthys Pty Ltd and INPEX Operations Australia Pty Ltd.
(d) Names of the combined entities
INPEX Holdings Australia Pty Ltd, INPEX Ichthys Pty Ltd and INPEX Operations Australia Pty Ltd(e) Summary of the transaction including its purpose
The Company’s affliate INPEX Browse Ltd., which has been acting as an operator of the Ichthys project in WA-37-R
block(*) in offshore Western Australia, undertook a legal restructure that required the transfer of the company’s assets to
newly established Australian companies for the purpose of efficient financing and operation of the project.
(2) Summary of the Accounting Treatment Adopted
The transaction was treated as a business combination among entities under common control based on “AccountingStandard for Business Combinations” (ASBJ Statement No. 21 issued on December 26, 2008), and “Revised Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No.
10 issued on December 26, 2008).
(*) Upon the grant of production license, WA-37-R was registered as WA-50-L.
2. Formation of jointly controlled company(1) Summary of the transaction(a) Names and nature of business of parties to the business combination
Names of parties to the business combination : INPEX Holdings Australia Pty Ltd and Ichthys LNG Pty Ltd
Nature of business : Transportation, liquefaction and sales of oil and natural gas through pipeline in WA-37-R block(*) in
offshore Western Australia(b) Date of the business combination
July 1, 2011(c) Legal form of the business combination
INPEX Holdings Australia Pty Ltd made a contribution in kind to Ichthys LNG Pty Ltd.
(d) Name of the combined entity
Ichthys LNG Pty Ltd(e) Summary of the transaction including its purpose
The Company’s affliate INPEX Browse Ltd., which has been acting as an operator of the Ichthys project in WA-37-R
block(*) in offshore Western Australia, undertook a legal restructure that required the transfer of the company’s assets to
newly established Australian companies for efficient financing and operation of the project.
(f) Reason that the business combination was formed as a jointly controlled company
INPEX Holdings Australia Pty Ltd and TOTAL E&P Holding Ichthys entered into the shareholders agreement under which
both parties would jointly control Ichthys LNG Pty Ltd, and there is no specific fact that indicates other controlling
relationships. Therefore the business combination is considered to be a formation of a jointly controlled company.
(2) Summary of the Accounting Treatment Adopted
The transaction was treated as formation of jointly conrtolled company based on “Accounting Standard for Business
Combinations” (ASBJ Statement No. 21 issued on December 26, 2008), and “Revised Guidance on Accounting Standard
for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10 issued on
December 26, 2008).
(*) Upon the grant of production license, WA-37-R was registered as WA-50-L.

41

更新日時:2012/05/10 17:24:00

ファイル名:④-6H24.3ｆ連結一株後発開示の省略【済】.doc

印刷日時:12/05/10 17:24(Per Share Information)

For the year ended
March 31, 2011

For the year ended
March 31, 2012

Net assets excluding minority interests per share¥546,958.90¥596,908.99

Net income per share¥40,832.40¥53,137.93

Notes:

1. Diluted net income per share is not presented because there are no dilutive potential of shares of common stock.
2. Net income per share is calculated based on the following:
For the year ended
March 31, 2011

Net income (Millions of yen)

128,699

For the year ended
March 31, 2012
194,000

Amount not attributable to common stockholders－－(Millions of yen)
Net income attributable to common stockholders
128,699
194,000(Millions of yen)
Average number of shares (shares)
3,151,894
3,650,894
Common stock
3,151,893
3,650,893
Common stock equivalent share; Special class share11
Note: Since a shareholder of the special class share is entitled to the same rights as that for shareholders of common stock
regarding dividends and the distribution of residual property, the special class share is classified as common stock
equivalent share.

42

更新日時:2012/05/10 17:24:00

ファイル名:④-6H24.3ｆ連結一株後発開示の省略【済】.doc

印刷日時:12/05/10 17:24(Significant Subsequent Events)
None(Omissions of Disclosure)With respect to information for leases, related party transactions, tax accounting, asset retirement obligations andretirement benefits plan respective disclosure has been omitted because it does not have significant impact on the
consolidated financial statements.

43

更新日時:2012/05/10 12:08:00 印刷日時:12/05/10 14:33

ファイル名:⑤-1個別英文BS_H23年度【済】.doc

5 Non-Consolidated Financial Statements(1) Non-Consolidated balance sheets(Millions of yen)Accounts

As of March 31, 2011

As of March 31, 2012

Cash and deposits

20,017

244,066

Accounts receivable-trade

24,91328,586

Marketable securities

93,393364,134

Finished goods

2,787

2,491

158

58

Raw materials and supplies

2,317

2,220

Advance payments-trade

15

12

Prepaid expenses

672

582

Other

46,81343,756

Allowance for doubtful accounts(1,300)(300)

Total current assets

189,790685,608

Buildings, net

10,261

9,801

Structures, net

101,892

92,127

Wells, net

5,210

3,193

Machinery and equipment, net

28,83727,556

Vehicles, net

29

41

Tools, furniture and fixtures, net

774

844

16,33016,394118

100

Construction in progress

43,201

77,386

Total tangible fixed assets

206,657

227,447

104,294

97,3410

0Software

2,490

2,217

Other

1,903

1,783

108,688

101,342(Assets)
Current assets

Work in process and partly-finished construction

Fixed assets
Tangible fixed assets

Land
Leased assets, net

Intangible assets
Goodwill
Mining right

Total intangible assets44

更新日時:2012/05/10 12:08:00 印刷日時:12/05/10 14:33

ファイル名:⑤-1個別英文BS_H23年度【済】.doc(Millions of yen)Accounts

As of March 31, 2011

As of March 31, 2012

Investment securities

877,531771,790

Investments in stock of subsidiaries and affiliates

481,964

685,012Investments in capital

00Investments in capital of subsidiaries and affiliates

00Long-term loans receivable

106Long-term loans receivable from employees

30

24

69,05572,8408

12Long-term time deposits

55,00055,000Recoverable accounts under production sharing

122,230

114,040

Other

23,945

19,484

Allowance for doubtful accounts

(122)

(104)

Investments and other assets

Long-term loans receivable from subsidiaries andaffiliates
Long-term prepaid expenses

Allowance for recoverable accounts under
production sharing
Allowance for investments in exploration

(464)

(295)

(186,660)(191,687)

Total investments and other assets

1,442,531

1,526,126

1,757,877

1,854,915

1,947,667

2,540,523

Accounts payable-trade

3,369

4,594

Current portion of long-term loans payable

3,830

4,218

43

35

Accounts payable-other

26,05153,449Accrued expenses

2,433

2,650

Income taxes payable

19,903

21,374

Deferred tax liabilities

139

124

Advances received

936

1,855

Deposits payable

414

394

-

409,454

Accrued bonuses to officers

110

110

Asset retirement obligations

829

564

Other

16

6,456

58,078505,283

Total fixed assets
Total assets(Liabilities)
Current liabilities

Lease obligations

Deposits received from subsidiaries and affiliates

Total current liabilities45

更新日時:2012/05/10 12:08:00 印刷日時:12/05/10 14:33

ファイル名:⑤-1個別英文BS_H23年度【済】.doc(Millions of yen)Accounts

As of March 31, 2011

As of March 31, 2012

52,88260,664

71

63

Deferred tax liabilities

3,357

4,212

Accrued retirement benefits to employees

6,469

5,871

Provision for loss on business of subsidiaries
and affiliates

3,764

11,982

Asset retirement obligations

2,321

2,662

Other

1,057

992

Total long-term liabilities

69,92586,449128,003591,733

290,809290,809

Capital reserve

1,023,802

1,023,802

Total capital surplus

1,023,802

1,023,802

Reserve for overseas investment loss

28,05440,869Mine prospecting reserve

7,308

9,291

472,962

582,067

508,325

632,227(5,248)(5,248)1,817,689

1,941,592

Unrealized holding gain on securities

1,973

7,198

Total valuation, translation adjustments and others

1,973

7,198

1,819,663

1,948,790

1,947,667

2,540,523

Long-term liabilities
Long-term loans payable
Lease obligations

Total liabilities(Net assets)
Shareholders’ equity
Common stock
Capital surplus

Retained earnings
Other retained earnings

Unappropriated retained earnings
Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation, translation adjustments and others

Total net assets
Total liabilities and net assets46

更新日時:2012/05/10 13:12:00 印刷日時:12/05/10 14:34

ファイル名:⑤-2個別英文PL_H23年度【済】.doc(2) Non-Consolidated statements of income(Millions of yen)
For the year ended
March 31, 2011

Accounts

For the year ended
March 31, 2012

Net sales

376,689452,228

Cost of sales

146,539

177,065

Gross profit

230,149

275,162

727

30

Selling, general and administrative expenses

38,776

41,479Operating income

190,645

233,652

Interest income

1,808

1,892

Interest income-securities

1,873

2,689

Dividends income

69,66557,343

Other

3,588

4,162

Total other income

76,93566,087

717

989

2,618

―

19,783

12,713

3,006

7,680

3,652

―

Foreign exchange loss

19,895

10,009Loss on adjustment for changes of accounting
standard for asset retirement obligations

2,903

―

Other

7,810

2,214

Total other expenses

60,38733,608

Ordinary income

207,194

266,131

Income before income taxes

207,194

266,131

Income taxes-current

88,837

119,622

Income taxes-deferred

(912)

701

Total income taxes

87,924

120,323

Net income

119,269

145,807

Exploration expenses

Other income

Other expenses
Interest expense
Amortization of stock issuance cost
Provision of allowance for investment loss
in exploration
Provision for loss on business of
subsidiaries and affiliates
Loss on sales of stocks of subsidiaries andaffiliates47

更新日時:2012/05/10 13:12:00

ファイル名:⑤-3個別英文SS_H23年度【済】.doc

印刷日時:12/05/10 14:34(3) Non-Consolidated statements of changes in net assets(Millions of yen)
For the year ended
March 31, 2011

Accounts

For the year ended
March 31, 2012

Shareholders’ equity
Common stock
Balance at the beginning of the period
Changes during the period
Issuance of new shares

30,000290,809260,809―

Total changes during the period

260,809290,809―290,809762,992

1,023,802

Issuance of new shares

260,809―

Total changes during the period

260,809―

1,023,802

1,023,802

762,992

1,023,802

260,809―

Balance at the end of the period
Capital surplus
Legal capital surplus
Balance at the beginning of the period
Changes during the period

Balance at the end of the period
Total capital surplus
Balance at the beginning of the period
Changes during the period
Issuance of new shares

260,809―

1,023,802

1,023,802―

28,054

Provision of reserve for overseas investment loss

28,054

12,815

Total changes during the period

28,054

12,81528,05440,869

7,741

7,308

Provision of mine prospecting reserve

7,308

8,038

Reversal of mine prospecting reserve(7,741)(6,055)

(432)

1,982

7,308

9,291

399,328

472,962

Provision of reserve for overseas investment loss

(28,054)(12,815)

Provision of mine prospecting reserve(7,308)(8,038)

Reversal of mine prospecting reserve

7,741

6,055

Dividends from surplus(18,013)(21,905)

Net income

119,269

145,807

Total changes during the period

73,634

109,104

472,962

582,067

Total changes during the period
Balance at the end of the period
Retained earnings
Other retained earnings
Reserve for overseas investment loss
Balance at the beginning of the period
Changes during the period

Balance at the end of the period
Mine prospecting reserve
Balance at the beginning of the period
Changes during the period

Total changes during the period
Balance at the end of the period
Retained earnings brought forward
Balance at the beginning of the period
Changes during the period

Balance at the end of the period48

更新日時:2012/05/10 13:12:00

ファイル名:⑤-3個別英文SS_H23年度【済】.doc

印刷日時:12/05/10 14:34(Millions of yen)
For the year ended
March 31, 2011

Accounts

For the year ended
March 31, 2012

Total retained earnings
407,069

508,325

Provision of reserve for overseas investment loss――

Provision of mine prospecting reserve――

Reversal of mine prospecting reserve――

Dividends from surplus(18,013)(21,905)

Net income

119,269

145,807

Total changes during the period

101,255

123,902508,325

632,227

Balance at the beginning of the period(5,248)(5,248)

Balance at the end of the period(5,248)(5,248)1,194,813

1,817,689

Balance at the beginning of the period
Changes during the period

Balance at the end of the period
Treasury stock

Total shareholders’ equity
Balance at the beginning of the period
Changes during the period
Issuance of new shares

521,619―

Cash dividends paid

(18,013)(21,905)

Net income

119,269

145,807

Total changes during the period

622,875

123,902

1,817,689

1,941,592

Balance at the beginning of the period

13,2101,973

Changes during the period
Other changes in items other than those inshareholders’ equity (net)(11,236)

5,224(11,236)

5,224

1,973

7,198

Balance at the beginning of the period

13,2101,973

Changes during the period
Other changes in items other than those inshareholders’ equity (net)(11,236)

5,224

Balance at the end of the period
Valuation, translation adjustments and others
Unrealized holding gain (loss) on securities

Total changes during the period
Balance at the end of the period
Total valuation and translation adjustments

Total changes during the period(11,236)

5,224

1,973

7,198

1,208,024

1,819,663

Issuance of new shares

521,619―

Cash dividends paid

(18,013)(21,905)

Net income
Other changes in items other than those inshareholders’ equity (net)119,269

145,807(11,236)

5,224

Total changes during the period

611,638

129,127

1,819,663

1,948,790

Balance at the end of the period
Total net assets
Balance at the beginning of the period
Changes during the period

Balance at the end of the period49

2ファイル名:(4) Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern
None

6 Other(1) Production, Orders Received and Sales Performance1) Actual production
The following table shows actual production by segment:
Segment

Category

For the year ended March 31, 2011 For the year ended March 31, 2012
1.4 MMbbls(3.9 Mbbls per day)47.0 Bcf(128.7 MMcf per day)10.2 MMboe(28.1 Mboe per day)239.7 Mkl
(1,507.9 Mbbls)

1.4 MMbbls(3.8 Mbbls per day)46.7 Bcf(127.6 MMcf per day)10.2 MMboe(27.7 Mboe per day)244.3 Mkl
(1,536.9 Mbbls)

418.7 tons

443.4 tons

179.7 millions kWh

202.8 millions kWh

23.9 MMbbls(65.5 Mbbls per day)
325.5 Bcf
(891.8 MMcf per day)86.0 MMboe(235.5 Mboe per day)10.2 MMbbls(27.9 Mbbls per day)
49.4 MMbbls(135.4Mbbls per day)
2.5 MMbbls(7.0 Mbbls per day)29.9 Bcf(82.0 MMcf per day)
8.0 MMboe(21.8 Mboe per day)
87.5 MMbbls(239.6 Mbbls per day)
402.4 Bcf
(1,102.5 MMcf per day)
163.8 MMboe(448.7 Mboe per day)239.7 Mkl
(1,507.9 Mbbls)
418.7 tons

23.0 MMbbls(62.8 Mbbls per day)
265.9 Bcf
(726.4 MMcf per day)
73.5 MMboe(200.7 Mboe per day)
9.2 MMbbls(25.0 Mbbls per day)
56.6 MMbbls(154.5 Mbbls per day)
1.8 MMbbls(5.0 Mbbls per day)27.0 Bcf(73.7 MMcf per day)
6.7 MMboe(18.2 Mboe per day)
91.9 MMbbls(251.2 Mbbls per day)
339.5 Bcf
(927.7 MMcf per day)
156.0 MMboe(426.2 Mboe per day)244.3 Mkl
(1,536.9 Mbbls)
443.4 tons

179.7 millions kWh

202.8 millions kWh

Crude oil
Natural gas
Subtotal
Japan
Petroleum products
IodineElectric power
generation
Crude oil
Asia & Oceania

Natural gas
Subtotal

Eurasia(Europe & NIS)

Crude oil

Middle East & Africa

Crude oil
Crude oil

AmericasNatural gas
Subtotal
Crude oil
Natural gas

Total

Subtotal
Petroleum products
IodineElectric power
generation

Notes: 1. The volume of LPG produced overseas is included in ‘Crude oil.’ On the other hand, the volume of LPG produced in thedomestic refinery is included in ‘Petroleum Products.’
2. A portion of crude oil production volume is consumed as material for petroleum products.
3. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
4. The production by the Company’s affiliates accounted for by the equity method is included in the figures above.
Also the production volume is a result for the years ended March 31 regardless of a closing date of fiscal periods of its subsidiaries
or affiliates.
5. The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX Groupcorresponds to the net economic take of the group.
Figures calculated by multiplying the gross production volume by the Company’s interest share are 125.7 MMbbls (344.3 Mbbls perday) of crude oil, 544.7 Bcf (1,492.4 MMcf per day) of natural gas, and in total 229.3 MMboe (628.3 Mboe per day) for the year
ended March 31, 2011, and 128.2 MMbbls (350.3 Mbbls per day) of crude oil, 495.0 Bcf (1,352.3 MMcf per day) of natural gas,
and in total 221.8 MMboe (606.0 Mboe per day) for the year ended March 31, 2012.
6. Boe means barrels of oil equivalent.
7. The volume of petroleum products is converted to bbl in parenthesis. Applied coefficient is 6.29 bbls per kl.
8. Iodine is refined by other company on consignment.
9. Figures are rounded to the first decimal place.

50

2ファイル名:

10. Subtotal of the production volume of crude oil and natural gas for the year ended March 31, 2011 has been changed reflecting thechange in method to convert the volume from natural gas to crude oil from the year ended March 31, 2012. The subtotal of thevolume before the change is 9.2 MMboe (25.3 Mboe per day) for Japan segment, 78.1 MMboe (214.1 Mboe per day) for Asia &Oceania segment, 7.5 MMboe (20.6 Mboe per day) for Americas segment and 154.5 MMboe (423.3 Mboe per day) for all segments
total for the year ended March 31, 2011.

2) Orders received
Disclosure on this information is omitted because the amount of orders received is accounted for a minor portion of total sales.
3) Actual sales
The following table shows sales by segment:(Millions of yen)
For the year ended March 31, 2011

Segment

CategoryJapan

Crude OilNatural Gas(excluding LPG)
LPG

Sales volume

138 Mbbls

1,325

64,253 MMcf

71,84865,602 MMcf

78,3342,515

223 Mbbls

229 Mbbls

28,921

Notes: 1.
2.

3.
4.

113,662

18,004 Mbbls

131,182

15,355 Mbbls

140,139

306,641 MMcf

256,563

264,617 MMcf

321,276

19,081

3,213 Mbbls

3,258 Mbbls

406,827

21,771
483,187

Crude Oil

9,056 Mbbls

68,3189,107 Mbbls

84,325Crude Oil

48,396 Mbbls

350,735

56,084 Mbbls

500,032

Crude OilNatural Gas(excluding LPG)
Subtotal

1,040 Mbbls

6,435

53 Mbbls

400

30,334 MMcf

6,237

27,382 MMcf

5,124

Crude OilNatural Gas(excluding LPG)
LPG

Total

2,559
31,443

104,524

Crude OilNatural Gas(excluding LPG)
LPG
Subtotal

Americas

Net sales

1,238

Subtotal

Eurasia(Europe & NIS)
Middle East & Africa

Sales volume

156 Mbbls

Other

Asia & Oceania

Net sales

For the year ended March 31, 2012

12,673

5,524

76,651 Mbbls

557,91080,738 Mbbls

726,222401,228 MMcf

334,650

357,601 MMcf

404,735

21,5973,436 Mbbls

3,487 Mbbls

24,330Other

28,921

31,443

Total

943,080

1,186,731

The above amounts do not include the related consumption tax.
The Company’s subsidiaries of which closing date for fiscal year is December 31 are principally consolidated their operating results
for the year ended December 31 except those subsidiaries prepared their financial statements for consolidation purpose as of theconsolidation closing date. However, the significant effects of the difference in fiscal periods were properly adjusted inconsolidation.
Sales volumes are rounded to the nearest whole number.
Sales for a major customer and sales as a percentage of total net sales are as follows. Sales amount of PERTAMINA
consists mostly of natural gas, and they are sold to Japanese, Korean, and Taiwanese customers in the form of LNG.

Customer

For the year ended
March 31, 2011
AmountRatio(Millions of yen)(%)

For the year ended
March 31, 2012
AmountRatio(Millions of yen)(%)

PERTAMINA

254,542245,942

27.0

51

20.7