ファConsolidated Financial Results for the year ended March 31, 2009
May 13, 2009
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: 1605

URL http://www.inpex.co.jp/

Representative: Naoki Kuroda, President

Contact person: Kazuhiko Itano, General Manager, Corporate Communications Unit

: Tokyo Stock Exchange

TEL+81-3-5572-0233
Scheduled date ofordinary general: June 25, 2009
meeting of shareholders

Scheduled date of payment of cash dividends: June 26, 2009

Scheduled date of filing : June 26, 2009
Financial report(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for the year ended March 31, 2009 (April 1, 2008-March 31, 2009)(1) Consolidated operating results(The percentage expressions represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2009

Operating income

Millions of yen%

Millions of yen

1,076,164
1,202,965(10.5)
24.1

663,266
714,211

March 31, 2008

Net income pershare—basic
For the year ended
March 31, 2009
March 31, 2008

Ordinary income
%

(7.1)
27.7

Net income

Millions of yen%

Millions of yen%

616,166
685,799(10.2)
17.0

145,062
173,245(16.3)
4.9

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—diluted
minority interests

Yen

61,601.60
73,510.14

Yen

―
―

%

%

%

11.9
15.8

34.5
40.2

61.6
59.4

(Reference): Equity in earnings of affiliates: for the year ended March 31, 2009, ¥ 946 million
for the year ended March 31, 2008, ¥ 1,764 million(2) Consolidated financial position
Total assets
Millions of yen

As of March 31, 2009
As of March 31, 2008

1,768,044
1,807,900

Net assets excluding minority interests
Net assets excluding
as a percentage of total assets
minority interests per share
Millions of yen%
Yen

Net assets

1,362,060
1,238,812

71.9
64.0

540,100.10
491,168.09(Reference): Net assets excluding minority interests: As of March 31, 2009, ¥ 1,271,122 million
As of March 31, 2008, ¥ 1,157,370 million(3) Consolidated cash flows

For the year ended
March 31, 2009
March 31, 2008

Cash flows from
Cash flows from investing Cash flows from financing Cash and cash equivalents at
operating activities
activities
activities
end of the period
Millions of yen
Millions of yen
Millions of yen
Millions of yen

230,352
363,994(240,167)(261,766)― 1 ―(46,090)(45,228)

162,844
222,269

ファ

2. Dividends
Cash dividends per share
At 1st
At 2ndAt 3rdquarter end quarter end quarter end
For the year ended
March 31, 2008
March 31, 2009
For the year ending
March 31, 2010
(estimated)

Yen

Yen

Total cash dividends(Annual)At fiscal
year end

Yen

Payout ratio(Consolidated)

Total

Yen

Cash dividends
as apercentage ofnet assets(Consolidated)

Yen

Millions of yen

%

%

―
―

3,500.00
4,000.00― 4,000.00 7,500.00― 4,000.00 8,000.00

17,673
18,834

10.2
13.0

1.6
1.6

―

2,500.00―

2,500.00 5,000.00

21.0

3. Forecasted Consolidated Operating Results for the year ending March 31, 2010 (April 1, 2009-March 31, 2010)(The percentage expressions represent the changes from the corresponding period of the previous fiscal year)

Net sales
Millions of yen
For the six months ending
September 30, 2009
For the year ending
March 31, 2010―

Operating income% Millions of yen――

669,000 (37.8)

Ordinary income

Net income pershare

Net income% Millions of yen%

Millions of yen

%

Yen

―

―

―

―

―

56,000 (61.4)

23,794.41―

301,000 (54.6)

281,000 (54.4)

Note : Forecasted Consolidated Operating Results for the six months ending September 30, 2009 is undecided at this moment. We will
announce it when it is available.

4. Others(1) Significant changes in scope of consolidation: None(2) Changes in accounting principles, procedures, presentations, etc., pertaining to preparation of consolidated financial statements(those to be stated as “Changes to the Basis of Presenting Consolidated Financial Statements”):
1. Changes due to changes in accounting standard: Yes
2. Other changes: None[Refer to page 16 “Basis of Presenting Consolidated Financial Statements” and page 25 “Changes
to the Basis of Presenting Consolidated Financial Statements” for details. ](3) Number of shares issued (Common stock)
1. Number of shares issued at the end of the period (including treasury stocks):

as of March 31, 2009; 2,358,410 shares
as of March 31, 2008; 2,358,410 shares
as of March 31, 2009: 4,916 shares
as of March 31, 2008; 2,047 shares

2. Number of treasury shares at the end of the period:

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.
Refer to page 36 “ Per share information” for the basis of calculation of consolidated net income per share.

(Reference) Non-Consolidated Financial Results
1. Financial results for the year ended March 31, 2009 (April 1, 2008-March 31, 2009)(1) Operating results(The percentage expressions represent the changes from the previous fiscal year)

Operating revenues
For the year ended
March 31, 2009
March 31, 2008

Operating income

Millions of yen%

Millions of yen

163,502
18,394788.9(43.9)

89,38915,624

Net income pershare—basic
For the year ended
March 31, 2009
March 31, 2008

Ordinary income%

472.1(49.0)

Millions of yen

78,623
15,738Net income%

399.6(48.3)

Millions of yen%

323,672
15,576―(48.6)Net income pershare—diluted
Yen

Yen

137,449.27
6,609.38――(2) Financial position

As of March 31, 2009
As of March 31, 2008

Total assets

Net assets

Millions of yen

Millions of yen

1,201,667
812,565

1,108,485
811,888(Reference): Net assets: as of March 31, 2009, ¥ 1,108,485 million
as of March 31, 2008, ¥ 811,888 million― 2 ―Net assets as a percentage of total
assets
%

92.2
99.9

Net assets per share
Yen

470,995.47
344,551.68

ファ*Explanation regarding the appropriate use of estimated consolidated operating results and other affairs(Affairs of Non-Consolidated Financial Results)
Non-consolidated financial results are based on the joint holding company’s one from April 1 to September 30, 2008 and the operating company’s one
from October 1, 2008 to March 31, 2009, since the Company merged INPEX CORPORATION and Teikoku Oil Co., Ltd on October 1, 2008,
switching to operating company from joint holding company.
The Company recorded a ¥266,950 million "Gain on extinguishment of tie-in shares " as Extraordinary income for the difference between the amountof shareholder's capital received by the Company as part of the net assets of the dissolved subsidiaries and the book value of its shares in thesesubsidiaries immediately prior to the merger, whereas it is not recorded in consolidated financial results as it has already been recorded prior to
October 1, 2008.

(Explanation regarding the appropriate use of estimated consolidated operating results)
Forecasted Consolidated Operating Results for the six months ending September 30, 2009 is undecided at this moment, as the business environment isextremely uncertain due to wide fluctuations of oil prices and so on. The aforementioned forecasts of “ 3. Forecasted Consolidated Operating Results
for the year ending March 31, 2010” are based on currently available information and contain many uncertainties. The final results might besignificantly different from the aforementioned forecasts due to change in business conditions including oil and gas price levels, production and sales
plans, projects development schedules, government regulations and financial and tax schemes. Please refer to “3. Qualitative Information on
Forecasted Consolidated Financial Results” on page 4 to 5.

― 3 ―1 Results of Operations and Financial Position(1) Results for the year ended March 31, 2009
During this fiscal year, Japanese economy has shown falling of business earnings and severity of employment conditions and has
significantly worsen, following the worldwide rapid business recession caused by the financial crisis having its roots in the
subprime loan issue in the USA .
Under these business environment, global crude oil prices, an important factor that affects our group’s businesses, where WTIstarted US$100.98 per bbl, and continued to climb up by expansion of demand in emerging countries such as China and India,
geopolitical risk in oil producing countries and influx of speculative money in the futures market, and recorded the highest priceof US$147.27 per bbl. However, since then, the oil price turned downward by worldwide economy recession and resultant dropof crude oil demand, and the price dropped to below US$40 per bbl which is the lowest level in the last four and half years. After
turn of the year, the price has fluctuated from US$30 to US$55 per bbl and closed at US$49.66 per bbl at the fiscal year end.
Meanwhile, domestic crude oil and petroleum products prices followed a similar pattern of global price movements.
The foreign exchange market, an important factor that also affects our group’s businesses, began to trade at the 100 yen level for
U.S. dollar. Credit crunch, which was caused by sub prime loan mortgage crisis in USA, cooled down temporary and worldwide
expectation for credit squeeze policy owing mainly to rocketing index of commodity market, Japanese yen depreciated to 110 yen
level for U.S. dollar in August. However, a pressure for depreciation of yen was gradually faded out due to sliding commodity
market, revealing of recession in USA and other developed countries, and the most determinably, financial crisis triggered bycrashes of major U.S. banks. In such market tone, yen appreciated for all currencies, owing to trend of aversion of risk assets andglobal phase of lower interest rate, the exchange rate touched lower level of 87 yen for U.S. dollar at one point. Afterwards,
cooling down of aversion risk led rebound towards yen-depreciation and as a result, TTM closed at 98.26 yen for U.S. dollar
which was 1.94 yen appreciation compared to the fiscal year end of March 31, 2008.
Consolidated net sales for the year ended March 31, 2009 decreased by ¥126,800 million, or 10.5%, to ¥1,076,164 million fromthe corresponding period of the previous fiscal year due to appreciation of Japanese yen against U.S. dollar and decrease in sales
volume of crude oil, despite positive effect of increase in sales price and sales volume of crude oil and natural gas. Net sales ofcrude oil decreased by ¥133,112 million, or 17.0%, to ¥650,352 million, and net sales of natural gas increased by ¥7,176 million,
or 1.8%, to ¥398,266 million. Sales volume of crude oil decreased by 10,288 Mbbls, or 12.0 %, to 75,427 Mbbls mainly due todecrease in production volume at ACG Oil Fields. Sales volume of natural gas decreased by 1,005 MMcf, or 0.3%, to 401,076
MMcf. Sales volume of natural gas produced overseas increased by 211 MMcf, or 0.1%, to 340,447 MMcf, and sales volume ofnatural gas produced domestically decreased by 33 MM ㎥, or 2.0%, to 1,625 MM ㎥ (60,629 MMcf). The average sales price of
crude oil produced overseas increased by US$2.63 per bbl, or 3.3 %, to US$82.70 per bbl. Meanwhile, the average sales price of
natural gas produced overseas increased by US$0.96 per Mcf, or 11.6%, to US$9.22 per Mcf, which is the more increase relative
to crude oil. The more increase in the average sales price of natural gas produced overseas relative to crude oil was due to sales
price of Bontang LNG in Indonesia which occupied most amount of natural gas produced overseas. This sales price is computed
based on a-month-former price relative to crude oil, so that the average sales price of natural gas produced overseas was actuallyless influenced by the decrease in sales price of crude oil during the second half of the fiscal year.
In addition, the average sales price of natural gas produced domestically increased by ¥1.69, or 4.7%, to ¥37.39 per ㎥. The
average exchange rate of Japanese yen on consolidated net sales appreciated by ¥10.76, or 9.5%, to ¥102.95 per U.S. dollar fromthe corresponding period of the previous fiscal year.
The decrease of ¥1,268 billion in net sales was derived mainly from the following factors: a decrease in sales volume affected¥90.9 billion and an increase in unit sales price contributed ¥67.7 billion, appreciation of Japanese yen against U.S. dollar forsales adversely affected ¥102.7 billion, and net sales excluding crude oil and natural gas decreased by ¥0.8 billion.
Cost of sales for the year ended March 31, 2009 decreased by ¥71,516 million, or 18.3%, to ¥319,038 million mainly due todecrease in cost recovery at ACG Oil Fields. Exploration expenses decreased by ¥8,112 million, or 23.8%, to ¥25,982 million,
and selling, general and administrative expenses increased by ¥3,773 million, or 5.9%, to ¥67,877 million. As a result, operating
income decreased by ¥50,944 million, or 7.1%, to ¥663,266 million.
Other income decreased by ¥1,054 million, or 3.2 %, to ¥32,034 million due to absence of gain on redetermination of unitizedfield and gain on taking effect of exploration and production agreement which recorded in previous fiscal year, despite increase individend income. Other expenses increased by ¥17,633 million, or 28.7%, to ¥79,134 million mainly due to foreign exchange
loss and increase in loss on valuation of investment securities. As a result, ordinary income decreased by ¥69,632 million, or
10.2%, to ¥616,166 million.
Total amount of current income taxes and deferred income taxes decreased by ¥20,970 million, or 4.3%, to ¥470,378 million. As
a result of above effects, net income for the year ended March 31, 2009 decreased by ¥28,183 million, or 16.3%, to ¥145,062
million from the previous fiscal year.
Non-consolidated financial results are based on the joint holding company’s one from April 1 to September 30, 2008 and theoperating company’s one from October 1, 2008 to March 31, 2009, since the Company merged INPEX CORPORATION and
Teikoku Oil Co., Ltd on October 1, 2008, switching to operating company from joint holding company.
The Company recorded a ¥266,950 million "Gain on extinguishment of tie-in shares " as Extraordinary income for the difference
between the amount of shareholder's capital received by the Company as part of the net assets of the dissolved subsidiaries andthe book value of its shares in these subsidiaries immediately prior to the merger, whereas it is not recorded in consolidated
financial results as it has already been recorded prior to October1, 2008.
With respect to segment information, the oil and natural gas business combined accounts for more than 90% of the aggregate
sales, operating income and total assets of all segments. Therefore, the business segment information has been omitted.
On a next fiscal year outlook, consolidated net sales for the year ending March 31, 2010 are expected to be ¥669 billion, todecrease ¥407.1 billion (37.8%) compared with for the year ended March 31, 2009.
Operating income for the year ending March 31, 2010 are expected to be ¥301.0 billion to decrease ¥362.2 billion (54.6%)― 4 ―compared with for the year ended March 31, 2009.
Ordinary income for the year ending March 31, 2010 are expected to be ¥281.0 billion, to decrease ¥335.1 billion (54.4%)
compared with for the year ended March 31, 2009, and net income for the year ending March 31, 2010 are expected to be ¥56.0
billion, to decrease ¥89.0 billion (61.4%) compared with for the year ended March 31, 2009.
The reason both sales and income will decrease is mainly due to expecting the decrease in crude oil price and the rise in theexchange rate of the Japanese yen against the U.S. dollar compared with this fiscal year.
In these estimates, the crude oil price is assumed to be US$52.5 per barrel (for Brent crude) with the exchange rate of theJapanese yen against the U.S. dollar at ¥95 through the year ending March 31, 2009.
(2) Financial Position
Consolidated total assets as of March 31, 2009 decreased by ¥39,855 million to ¥1,768,044 million from ¥1,807,900 million as ofMarch 31, 2008 due to decrease in current assets despite increase in fixed assets owing to recoverable accounts under production
sharing and investment in tangible fixed assets. Current assets decreased by ¥154,000 million to ¥411,110 million due to decreasein cash and deposits, and accounts receivable-trade owing to depreciation of crude oil price. Fixed assets increased by ¥114,144
million to ¥1,356,934 million mainly due to increase in recoverable accounts under production sharing and tangible fixed assets.
Meanwhile, total liabilities decreased by ¥163,103 million to ¥405,984 million from ¥569,088 million as of March 31, 2008.
Current liabilities decreased by ¥119,226 million to ¥206,059 million due to decrease in overseas income taxes payable andaccounts payable-other. Long-term liabilities decreased by ¥43,877 million to ¥199,924 million due to decrease in long-term
debt.
Net assets increased by ¥123,248 million, to ¥1,362,060 million. Total shareholders’ equity increased by ¥123,167 million, to¥1,288,062 million, total valuation, translation adjustment and others decreased by ¥9,415 million to ¥ (16,939) million andminority interests increased by ¥9,496 million to ¥90,938 million.
As for cash flows for the year ended March 31, 2009, net cash provided by operating activities decreased by ¥133,642 million to¥230,352 million from the previous fiscal year due to decrease in income before income taxes and minority interests owing toappreciation of Japanese yen against U.S. dollar and decrease in sales volume of crude oil, and furthermore, due to increase inincome taxes paid. Meanwhile, net cash used in investing activities decreased by ¥21,599 million to ¥240,167 million due toincrease in proceeds from sales of marketable securities, despite increase in payments for purchase of tangible fixed assets. Net
cash used in financial activities increased by ¥862 million to ¥46,090 million mainly due to repayments of long-term debt. After
deducting ¥3,519 million of the effect of exchange rate changes on cash and cash equivalents, the decrease in cash and cash
equivalents at the end of the year ended March 31, 2009 amounted to ¥59,425 million. Cash and cash equivalents at the end of theyear ended March 31, 2009 totaled ¥162,844 million reflecting above net decrease of ¥59,425 million from ¥222,269 million at
the end of the previous fiscal year.

(3) Dividend Policy and dividends for the year ended March 31, 2009 and for the year ending March 31, 2010
In order to secure a stable supply of petroleum 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, aswell as in maintenance and expansion of the supply infrastructure. The robust financial base of INPEX CORPORATION Group
is crucial for maintaining this level of investment. Therefore, our basic policy is to maximize corporate value through ongoing
maintenance and enlargement of our reserves and production of petroleum 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 INPEXCORPORATION Group.
We decided year-end dividend to be ¥4,000 per share for the year ended March 31, 2009 based on the policy above. With the
mid-term dividend of ¥4,000 per share, thus total dividend for the year is to be ¥8,000 per share
We plan a mid-term dividend to be ¥2,500 per share and a year-end dividend to be ¥2,500 per share for the year ending March 31,
2010, and thus a total dividend for the year is to be ¥5,000 per share, judging in a comprehensive manner based on the policy
above under the circumstance that net sales and net income for the year ending March 31, 2010 are expected to be significantly
decreased.
As to use of retained earnings, we plan to apply the earnings to investments for the purpose of maintenance and enlargement of
our reserves and production of petroleum and natural gas.

― 5 ―

2. Overview of the INPEX CORPORATION GroupThe INPEX CORPORATION Group consists of INPEX CORPORATION, 64 subsidiaries (including 54 consolidated
subsidiaries), 20 affiliates (including 13 equity method affiliates) and their two subsidiaries (as of March 31, 2009). The groupprimarily engages in the exploration, development, production and sales of crude oil and natural gas in Japan as well as in the Asia,
Oceania, Middle East, the coastal states around the Caspian Sea and Latin America, Africa. In addition, we provide loans andinvestments to companies engaged in the aforementioned activities. Our business segments are crude oil and natural-gas-related
products and other business.
The following diagram shows our group’s business flow.
Crude oil and Natural-gas-related products business(51 consolidated subsidiaries, 13 equity method affiliates)

Crude Oil/ Natural GasSales

Crude Oil
Sales

Crude Oil Sales

Pipeline, Liquifaction etc.

Natural Gas andother Sales
Pipeline, Liquifaction
Refining etc.

Drilling, Civil work etc.

＜Pipeline, Liquifaction, Refining Marketing etc.＞●Consolidated subsidiaries
INPEX BTC Pipeline, Ltd.
INPEX DLNGPL Pty Ltd
Teiseki Pipeline Co., Ltd.
Teiseki Propane Co., Ltd.
Teiseki Topping Plant Co., Ltd.
Other 3 consolidated subsidiaries●2 equity method affiliates●Consolidated subsidiaries
Teiseki Drilling Co., Ltd.
Teiseki Real Estate Co., Ltd.
And one consolidated subsidiary

Other business(3 consolidated subsidiaries）（注）１ symbol “→” indicates capital investment（including indirect holdings）
２ symbol “⇒” indicates products and service flow

― 6 ―Natural Gas andother Sales

Drilling, Civil work etc.

Customers

INPEX CORPORATION●Equity method affiliates
MI Berau B.V.
Angola Japan Oil Co., Ltd.
INPEX Offshore North Campos, Ltd.
Japan Ohanet Oil & Gas Co., Ltd.
Other 7 equity method affiliates

Crude Oil
Sales

〈Oversea’s Crude oil Sales〉
INPEX Trading , Ltd.

Crude Oil Sales＜Exploration, Development, Production＞●Consolidated subsidiaries
Japan Oil Development Co., Ltd.
INPEX Natuna, Ltd.
INPEX Sahul, Ltd.
INPEX Southwest Caspian Sea, Ltd.
INPEX Alpha, Ltd.
INPEX North Caspian Sea, Ltd.
INPEX Browse, Ltd.
INPEX Masela, Ltd.
Teikoku Oil (Venezuela) Co., Ltd.
Teikoku Oil (D.R. Congo) Co., Ltd.
The Egyptian Petroleum Development
Co., Ltd.
Other 31 consolidated subsidiaries

3. Management Policy
1.
Management Strategy
On October 1, 2008, completing two and half years integration process, INPEX Holdings Inc. merged INPEXCORPORATION and Teikoku Oil Co., Ltd. and changed the company name from INPEX Holdings Inc. to INPEXCORPORATION. By the completion of integration process, we realized the full integration of headquarter functions andorganization. INPEX CORPORATION will work on aggressively promoting exploration, development and production of
petroleum and natural gas in the worldwide under the effective and flexible management organization and carrying out oursocial mission of energy supply in a stable and effective manner as well as realizing sustainable growth of our corporate value.
In pursuit of development of petroleum and natural gas which is the fundamental business of the Company, we seek toimprove the productivity and profitability of our existing oil and gas fields in Japan and overseas. At the same time, we areworking steadily and proactively to commercialize undeveloped oil and gas projects, especially our operator projects.
Furthermore, to ensure sustainable growth from the medium to long-term perspective, we are leveraging to maximize oursubstantially strengthened ability to obtain upstream interests as a consequence of the business integration by building a morebalanced asset portfolio, further strengthening our solid financial base, and mobilizing our practical operational and technicalcapabilities. By maintaining and increasing our reserves and production of petroleum and natural gas, we will endeavor tosecure stable profits over the medium to long term and to achieve enhanced corporate value over time.
2.

Medium-to Long Term Management Key Initiatives
The key management initiatives for the Company in developing petroleum and natural gas resources are achieving
sustainable growth by maintaining and expanding reserves through reinvesting the cash flow obtained from existing oil andgas fields. By combining overseas projects that promise high growth potential due to expansion of reserves with domestic
projects without the attendant country risk and foreign currency risk, we are seeking qualitative improvements in our asset
portfolio. At the same time, by leveraging our business resources more effectively through an organic linkage of our overseas
assets and domestic infrastructure, we aim to further enhance corporate value.
As our immediate business challenges, we will continue to move forward with exploration and development in new andexisting projects such as the Masela Block (Abadi) gas project in Indonesia and the WA-285-P (Ichthys) gas and condensate
project in Australia, the Abu Dhabi offshore oil fields in the UAE and Kashagan and ACG fields in the Caspian Sea.
Domestically, we are working to increase the scale of our natural gas business permanently by optimal application fromnatural gas assets in overseas to domestic supply infrastructure including the planed LNG receiving terminal in the Naoetsu
Port. Since we anticipate continuous substantial investment in order to achieve the growth strategy of the Company, we musttake all possible measures to raise the capital required.

We will undertake operations according to the following policies in order to implement the business strategy of theCompany.
(1) Achieve Well Balanced Asset Portfolio① Regional Diversification
Through business integration, the operating area of the Company has diversified to include Asia, Oceania, the Middle
East, the Caspian Sea, Central and South America, and Africa, besides Japan, and the regional balance of our asset
portfolio has improved significantly. However, we recognize the need to reduce our dependence on specific regions fromthe viewpoint of country and operating risks, and we will continue to be proactive in considering investment in other new
promising areas.
② Balance between Crude Oil and Gas
In terms of output by products, the share of crude oil is about 60% compared with about 40% for natural gas as a resultof business integration.
Since crude oil is a commodity highly sensitive to various factors, the selling price fluctuates in the marketplace. On theother hand, the term of sales contract with customers are for a short period (one year), the required investment for
production and transportation facilities is relatively small and the development period is comparatively short comparedwith the natural gas projects. Accordingly, profitability can be achieved comparatively soon after discovery in the case ofoil fields.
Commercial production of natural gas requires substantial investments and a long lead time of preparation for
constructing liquefaction plants and pipelines. Because the buyer also must make large investments in LNG receiving
facilities, stable and long-term sales contracts are essential. With an assurance of long term LNG supply to the customers,
profitability can be maintained.
Regarding a new project, we focus on a balance between crude oil and natural gas to ensure efficient investment with aview to long-term cash flow.
③ 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,
development and production stages. To achieve this balance, we invest in exploration and undeveloped oil and gas assets.
④ Enhance Activities and Capabilities as an Operator
In acting as an operator, we face managerial issues such as the difficulty in securing manpower and the heavy burden offinancing. However, involvement as an operator also increases our opportunities to obtain new working interests by― 7 ―improving our technical capabilities and winning recognition from oil and gas producing countries and international oil
campaniles. The Company is pursuing opportunities to act as operator with the substantially enhanced technicalcapabilities resulting from business integration, while addressing the effective utilization of management resources.
⑤ 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, such as buyback 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) 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 expand production in the key Minami Nagaoka gas field. We also own promising
undeveloped assets, primarily natural gas, in Indonesia and Australia, and to ensure their long-term growth, we will consider
the possibilities of gas business integration that organically links these overseas gas assets with our domestic infrastructure,in aggressive pursuit of an enlarged business domain.
(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 investments,
presenting an insuperable obstacle for a single company. Typically, several companies form a consortium to share the risk,
and this is the case internationally too. The Company plans to expand its business and diversify risk by increasing
opportunities for participation in projects through enhanced cooperation with the major international oil companies, thenational oil companies of oil and gas producing countries and leading private oil resource developers, trading companies andother energy-related companies.
(5) Promote an Efficient and Transparent Corporate Management
The Company bears the heavy responsibility of assuring a stable supply of energy to Japan in an efficient manner.
Consequently, we recognize not only that our corporate social responsibility is increasing but also that it is essential that we
exercise sensitivity in conducting business in communities in Japan and around the world. Therefore, we intend to manage
our business efficiently and transparently in line with global standards.
(6) Environmental Efforts
Environmental issues, particularly global warming, are a matter of worldwide concern. 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 reduction unit, reduce emissions of chemical substances, suppress emissions into theatmosphere and river systems, and to take measures to prevent soil pollution and reduce waste. Combustion of natural gas
involves relatively small emissions of CO2 and NOx compared with combustion of other fossil fuels. Positioning natural gas
as our core business, we intend to further promote the use of this clean fuel.
(7) Development of New Business
New technologies such as GTL (Gas to Liquids) and DME (Dimethyl Ether) are ones that produce a oil substitute form byreforming natural gas at a normal temperature, and these environmental benefits have attracted attention because the GTL
and DME products contain almost no pollutants. As the Company has large reserves of natural gas, we are participating in
R&D projects for GTL and DME. Introduction of these new technologies is considered in our plans to develop a new gas
fields.
Our goal is to be corporation supplying variety of energy and we will work on new energy and renewable energy.
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 by rapidly achieving synergy through business integration between
INPEX and Teikoku Oil. We will seek to allocate our business resources optimally and maintain 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.

― 8 ―更新日時:5/12/2009 8:35:00 PM

ァイル名:③H21.3_aBS【済】.DOC

印刷日時:09/05/13 21:03

4 Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Accounts(Assets)
Current assets
Cash and deposits
Accounts receivable-tradeMarketable securities
Inventories
Deferred tax assets
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures, net
Wells, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total tangible fixed assets
Intangible assets
Goodwill
Exploration and development rights
Mining rights
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

As of March 31, 2008

204,596
120,948
115,730
19,716
11,236
83,4369,504(58)565,110

117,393
73,540149,507*1
18,205
6,144
37,8718,474(28)411,110*1,3,4112,291
19,89349,001
28,38628,72016,187
254,481*2,4,5,6

101,732
22,00847,352
20,752
76,81828,971
297,635*4

121,644
120,176
18,843
4,815
265,480*5

114,883
115,566
18,592
4,638
253,680*2,3Recoverable accounts under production
sharing
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for recoverable accounts
under production sharing

As of March 31, 2009

360,726
9,361

*3,4

383,162*2

Allowance for investments in exploration
Total investments and other assets
Total fixed assets
Total assets―9―20,61831,279(911)

344,698
14,195453,922*3

26,14065,926(528)(71,445)(87,828)(9,963)(10,907)722,827
1,242,789
1,807,900

805,618
1,356,934
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ァイル名:③H21.3_aBS【済】.DOC

印刷日時:09/05/13 21:03(Millions of yen)Accounts(Liabilities)
Current liabilities
Accounts payable-trade
Short-term loans
Income taxes payable
Accounts payable-other
Provision for exploration projects
Accrued bonuses to officers
Other
Total current liabilities
Long-term liabilities
Long-term debt
Deferred tax liabilities
Accrued retirement benefits to employees
Accrued retirement benefits to officers
Liabilities for site restoration anddecommissioning costs
Liabilities for losses on development
activities
Accrued special repair and maintenance
Other
Total long-term liabilities
Total liabilities

As of March 31, 2008

*3
*3

*3

As of March 31, 2009

22,582
19,274
131,523
111,505
10,786208
29,404
325,285
174,81344,296
8,645
475

Unrealized gain (loss) from hedging
instruments
Translation adjustments
Total valuation, translation adjustments
and others
Minority interests
Total net assets
Total liabilities and net assets―10―

136,430
28,171
8,545―
14,192

1,964

1,964

229
649
243,802569,088

Unrealized holding loss on securities*4

12,728*3(Net assets)
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation, translation adjustments andothers11,87327,81670,419*4 65,440
7,948
134
22,427206,059*4*4404
10,216
199,924
405,984

30,000418,493
718,616(2,215)
1,164,894

30,000418,477
844,832(5,248)1,288,062(7,468)(6,817)

3

(0)

(60)

(10,121)(7,524)(16,939)

81,442
1,238,812
1,807,900

90,9381,362,060
1768,04411ァイル名:③H21.3_bPL【済】.DOC

更新日時(2) Consolidated Statements of Income(Millions of yen)
For the year ended March 31, 2008

For the year ended March 31, 2009

1,202,965

1,076,164

Cost of sales

390,554

319,038

Gross profit

812,410757,126

Exploration expenses

34,45725,982

Exploration subsidies

(362)

―

Total explolarion expenses
Selling, general andadministrative expenses
Operating income

34,09525,982

Accounts

Net sales

Exploration expenses

64,104*1,2*1,2

67,877714,211663,266

10,984

9,535

Dividend income

5,439

12,338Equity in earnings of affiliates
Net gain on re-determination ofunitized field
Net gain on taking effect of
exploration and production
agreement
Foreign exchange gain
Other

1,764

946

*3

4,005

―

*4

3,481

―

2,747
4,666

―
9,214

33,08932,034

10,887

3,934

20,586

16,642

3,104

3,386

21,34931,798―5,572
61,501

14,5708,801
79,134

685,799

616,166

685,799

616,166

496,852(5,502)488,262(17,883)

Total income taxes
Minority interests

491,349
21,204

470,378725

Net income

173,245

145,062

Other income
Interest income

Total other income
Other expenses
Interest expense
Provision for allowance forrecoverable accounts under
production sharing
Provision for exploration
projects
Loss on valuation of investment
securities
Foreign exchange loss
Other
Total other expenses
Ordinary income
Income before income taxes andminority interests
Income taxes-current
Income taxes-deferred―11―

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印刷日時:09/05/13 21:06(3) Consolidated Statements of Changes in Net Assets(Millions of yen)Accounts

For the year ended March 31, For the year ended March 31,
2008
2009

Shareholders’ equity
Common stock
Balance at beginning of the period
Balance at end of the period
Capital surplus
Balance at beginning of the period
Changes during the period
Disposal of treasury stock
Total changes during the period
Balance at end of the period
Retained earnings
Balance at beginning of the period
Changes during the period
Cash dividends paid
Net income
Total changes during the period
Balance at end of the period
Treasury stock
Balance at beginning of the period
Changes during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes during the period
Balance at end of the period
Total shareholders’ equity
Balance at beginning of the period
Changes during the period
Cash dividends paid
Net income
Purchase of treasury stock
Disposal of treasury stock
Total changes during the period
Balance at end of the period―12―30,00030,00030,00030,000418,491

418,4932
2418,493(15)(15)
418,477

570,120

718,616(24,749)
173,245
148,496
718,616(18,846)
145,062
126,216
844,832(1,108)(2,215)(1,159)52(1,106)(2,215)(3,563)530(3,032)(5,248)1,017,503

1,164,894(24,749)
173,245(1,159)54
147,391
1,164,894(18,846)
145,062(3,563)514
123,167
1,288,062

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印刷日時:09/05/13 21:06(Millions of yen)Accounts

For the year ended March 31, For the year ended March 31,
2008
2009

Valuation, translation adjustments and others
Unrealized holding gain (loss) on securities
Balance at beginning of the period
Changes during the period
Other changes in items other than thosein shareholders’ equity (net)Total changes during the period
Balance at end of the period

9,348(7,468)(16,816)650(16,816)(7,468)650(6,817)

17

3

(14)

(4)

(14)
3

(4)
(0)

2,025

(60)

(2,085)(10,061)(2,085)(60)(10,061)(10,121)

11,391(7,524)(18,915)(9,415)(18,915)(7,524)(9,415)(16,939)

51,121

81,44230,3209,496

30,32081,442

9,496
90,9381,080,016

1,238,812(24,749)
173,245(1,159)54(18,846)
145,062(3,563)514

11,40480

158,796
1,238,812

123,248
1,362,060

Unrealized gain (loss) from hedging instruments

Balance at beginning of the period
Changes during the period
Other changes in items other than thosein shareholders’ equity (net)Total changes during the period
Balance at end of the period
Translation adjustments
Balance at beginning of the period
Changes during the period
Other changes in items other than thosein shareholders’ equity (net)Total changes during the period
Balance at end of the period
Total valuation, translation adjustments andothersBalance at beginning of the period
Changes during the period
Other changes in items other than thosein shareholders’ equity (net)Total changes during the period
Balance at end of the period
Minority interests
Balance at beginning of the period
Changes during the period
Other changes in items other than thosein shareholders’ equity (net)Total changes during the period
Balance at end of the period
Total net assets
Balance at beginning of the period
Changes during the period
Cash dividends paid
Net income
Purchase of treasury stock
Disposal of treasury stock
Other changes in items other than thosein shareholders’ equity (net)Total changes during the period
Balance at end of the period―13―

- 14 - - 14 -ファイル名:③(4) Consolidated Statements of Cash Flows(Millions of yen)Accounts

For the year ended
March 31, 2008

For the year ended
March 31, 2009

685,799
36,181
6,616

616,166
42,966
6,760

21,206

20,3103,937(2,319)275(96)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Provision for allowance for recoverable accounts
under production sharing
Provision for exploration projects
Provision for accrued retirement benefits to employee

815

1,597

Other provisions(2,376)3,468Interest and dividend income(16,423)(21,873)

Interest expense

10,8873,934

Foreign exchange loss

1,035

10,086Equity in earnings of affiliates(1,764)(946)

Provision for site restoration and decommissioning costs(Gain) loss on the sales of investment securities
Loss on the valuation of investment securities
Recovery of recoverable accounts under
production sharing (capital expenditures)
Recoverable accounts under production
sharing (operating expenditures)
Accounts receivable-trade
Inventories
Accounts payable-trade

15

(81)

21,34931,79892,14745,724(26,052)(27,020)(39,392)

44,199(2,274)

2,347

481

(9,824)

Accounts receivable-other(16,985)

27,557

Accounts payable-other

21,809(47,812)Advances received

10,351

4,229

Other

7,156

(6,489)Subtotal

814,795

744,683

Interest and dividends received

17,514

21,257

Interest paid

(11,507)(4,800)

Income taxes paid

(456,806)(530,789)

Net cash provided by operating activities

363,994

230,352- 14 -

- 15 - - 15 -ファイル名:③(Millions of yen)Accounts

For the year ended
March 31, 2008

For the year ended
March 31, 2009

(2,764)(6,463)

Cash flows from investing activities
Increase in time deposits
Decrease in time deposits

18,996

4,497

Payments for purchases of tangible fixed assets(59,465)(88,611)

Proceeds from sales of tangible fixed assets

182

246

Payments for purchases of intangible assets(2,012)(2,864)

Payments for purchases of marketable securities(39,948)(19,082)

Proceeds from sales of marketable securities

51,494111,451

Payments for purchases of investment securities(112,378)(137,447)

104

16,530(131,059)(108,294)

Proceeds from sales of investment securities
Investment in recoverable accounts under
production sharing (capital expenditures)
Decrease in short-term loans receivable

10,53470(7,452)(5,895)

Collection of long-term loans receivable

526

762

Payments for purchase of mining rights(15,886)―

Proceeds from transfer of mining rights

27,890―Long-term loans madeOther
Net cash used in investing activities(529)(5,068)(261,766)(240,167)(50)

20,93340,784

12,040(67,745)(66,364)

8,344

9,369

Cash flows from financing activities
Increase (decrease) in short-term loans
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from minority interests for additional shares
Purchase of treasury stock(1,104)(3,048)Cash dividends paid

(24,718)(18,833)

(737)

(81)

(0)

―

Dividends paid to minority shareholders
Stock transfer payment

―

(106)

Net cash used in financing activities
Effect of exchange rate changes on cash
and cash equivalents
Net increase (decrease) in cash and cash equivalents(45,228)(46,090)(24,147)(3,519)32,853(59,425)

Cash and cash equivalents at beginning of the period

189,416

222,269

Other

Cash and cash equivalents at end of the period*1- 15 -

222,269*1

162,844

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印刷日時:09/05/13 21:11(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
For the year ended
March 31, 2008
1.Scope of consolidation
Number of consolidated subsidiaries: 60

For the year ended
March 31, 2009
1.Scope of consolidation
Number of consolidated subsidiaries: 54

Names of major subsidiaries;
INPEX CORPORATION, Teikoku Oil Co., Ltd., Japan Oil Development Co., Ltd., INPEX Natuna,
Ltd., INPEX Sahul, Ltd., Teikoku Oil D.R. Congo,
Co., Ltd., INPEX Southwest Caspian Sea, Ltd.,INPEX North Caspian Sea, Ltd., INPEX Browse,
Ltd., INPEX Masela, Ltd.

Names of major subsidiaries;
Japan Oil Development Co., Ltd., INPEX Natuna,
Ltd., INPEX Sahul, Ltd., Teikoku Oil D.R. Congo,
Co., Ltd., INPEX Southwest Caspian Sea, Ltd.,INPEX North Caspian Sea, Ltd., INPEX Browse,
Ltd., INPEX Masela, Ltd.

During this period:
Number of new companies included in consolidated
subsidiaries:
3
Number of companies excluded from consolidated
subsidiaries:
3
Details for the above changes:(1) Teikoku Oil Suriname, Co., Ltd., Teikoku Oil
Cabinda Co., Ltd., and INPEX UK Ltd. havebeen included due to establishment of the companies.
(2) Teikoku Oil Company Panama, S.A., INPEX
Offshore South Sulawesi, Ltd., and Teikoku Oil
Venezuela, B.V. have been excluded due tocompletion of liquidation.

During this period:
Number of new companies included in consolidated
subsidiaries:
2
Number of companies excluded from consolidated
subsidiaries:
8
Details for the above changes:(1) INPEX Petroleo Santos Ltda. and INPEXSeram,Ltd. have been included due to establishment of the companies.
(2) INPEX CORPORATION and Teikoku Oil Co.,
Ltd. have been excluded due to merger.
(3) TEIKOKU OIL SUEZ SEJ CO.,Ltd., Teikoku
Oil Algeria Co,Ltd., Teikoku Gas Venezuela C.
A., INPEX North Makassar, Ltd., INPEX
North Natuna,Ltd., and Teikoku Oil SCT Exploration B.V. have been excluded due to completion of liquidation.

Names of major unconsolidated subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C. V.

Names of major unconsolidated subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C. V., TELNITE CO.,LTD.

(Reason for exclusion from consolidation)
Those companies are not consolidated because their
total assets, total net sales, total net income (the equity portion) and total retained earnings (the equity
portion) do not have significant impact on the consolidated financial statements.

(Reason for exclusion from consolidation)
Same as on the left

2. Application of equity method
Unconsolidated subsidiary accounted for by the equity method: None

2. Application of equity method
Same as on the left

Number of affiliates accounted for by the equity
method:14

Number of affiliates accounted for by the equity
method:13

Names of major affiliates:
MI Berau B.V., Angola Japan Oil Co., Ltd., Japan
Ohanet Oil & Gas Co., Ltd., ALBACORA JAPAOPETROLEO LTDA, INPEX Offshore North Campos, Ltd.

Names of major affiliates:
MI Berau B.V., Angola Japan Oil Co., Ltd., Japan
Ohanet Oil & Gas Co., Ltd., ALBACORA JAPAOPETROLEO LTDA, INPEX Offshore North Campos, Ltd.

―16―

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印刷日時:09/05/13 21:11

For the year ended
March 31, 2008
During this fiscal year:
Number of new companies included in affiliates accounted for by the equity method:1

For the year ended
March 31, 2009
During this fiscal year:
Number of companies excluded from affiliates accounted for by the equity method:
1

Detail for the above change:
MI Berau Japan Ltd. has been included due to subscription to capital.

Detail for the above change:
BONTANG TRAIN-G PROJECT FINANCE CO.,LTD. has been excluded due to completion of liquidation.

Names of major affiliates not accounted for by theequity method:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C.V., Telnite Co., Ltd., Tangguh project
management Co., Ltd.

Names of major affiliates not accounted for by theequity 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)
Subsidiaries and affiliates are not accounted for by
the equity method because their total net income (theequity portion) and total retained earnings (the equity portion) do not have significant impact on the
consolidated financial statements.

(Reason for not applying the equity method)Same as on the left

Procedures for application of the equity method:

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, the Company used the financial statements of each affiliate prepared as of theirclosing date. For certain affiliates, however, theCompany used financial statements prepared forconsolidation purposes as of the consolidated closing date.

Same as on the left

―17―

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印刷日時:09/05/13 21:11

For the year ended
March 31, 2008
3. Closing dates for the fiscal year of consolidated
subsidiaries

For the year ended
March 31, 2009
3. Closing dates for the fiscal year of consolidated
subsidiaries

For the 40 companies for which the closing date differed from the consolidated closing date, including,but not limited to, INPEX Sahul, Ltd. and INPEX
Masela, Ltd., the Company used the financial statements for the year ended December 31. However, thenecessary 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 10 companies including, but not limited, Japan Oil Development, Co., Ltd., Teikoku Oil D.R.
Congo, Co., Ltd., INPEX Southwest Caspian Sea,
Ltd., and INPEX North Caspian Sea, Ltd., we usedfinancial statements for the year ended the consolidated closing date even though their closing date is
December 31.

For the 36 companies for which the closing date differed from the consolidated closing date, including,but not limited to, INPEX Sahul, Ltd. and INPEX
Masela, Ltd., the Company used the financial statements for the year ended December 31. However, thenecessary 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 10 companies including, but not limited, Japan Oil Development, Co., Ltd., Teikoku Oil D.R.
Congo, Co., Ltd., INPEX Southwest Caspian Sea,
Ltd., and INPEX North Caspian Sea, Ltd., we usedfinancial statements for the year ended the consolidated closing date even though their closing date is
December 31.

(Additional information)
Until the year ended March 31, 2007, INPEX
Browse, Ltd. had been consolidated on the basis of
fiscal period ended December 31, which differs fromthat of the Company. Effective the year ended March
31, 2008, its financial statements prepared for consolidation purpose as of the consolidation closing
date has been used due to increase in its materiality.
Accordingly, the consolidated operating results forthe year ended March 31, 2008 included operating results for 15 months from January 1, 2007 to March
31, 2008.
The effect of this change does not have a significant
impact on the consolidated financial statements.
4. Accounting policies
4. Accounting policies
1) Valuation method for significant assets
1) Valuation method for significant assets(a) Securities(a) Securities
Other securities
Other securities
With a determinable market value
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. Costof securities sold is determined by the movingaverage method.
Without a determinable market value

Same as on the left

Without a determinable market value

Other securities without a determinable market
value are stated at cost determined by the moving-average method.

―18―

Same as on the left

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印刷日時:09/05/13 21:11

For the year ended
March 31, 2008

For the year ended
March 31, 2009(b) Inventories
Products
Carried mainly at the lower of cost or market,
cost being determined by the moving-averagemethodSupplies
Carried mainly at cost, determined by the moving-average method
Work in process
Carried at cost, determined by the individual
cost basis(b) Inventories
Overseas inventories
Carried mainly at cost, determined by the average cost method (balance sheet value is carriedat 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)(Change in accounting policy)
Effective the fiscal year ended March 31, 2009,
the Company applies "Accounting Standard for
Measurement of Inventories" (ASBJ Statement
No.9, issued on July 5, 2006). This does nothave significant impact on the consolidated financial statements.

2) Depreciation method of significant depreciable
assets(a) Tangible fixed assets
Depreciation of mining facilities is mainly computed by the unit-of-production method. For othertangible 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(Changes in accounting policy)
As for tangible fixed assets acquired on and after
April 1, 2007, the Company and certain subsidiaries have changed the depreciation method
based on an amendment in corporation tax law.
This change does not have significant impact
on the consolidated financial statements.
(Additional information)
As for other tangible fixed assets whose bookvalue reached their residual value, the Company
and certain subsidiaries depreciates the residual
value equally over 5 years in accordance withthe method prescribed in amendment in corporation tax law.
This change does not have significant impact on
the consolidated financial statements.

―19―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 othertangible 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

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For the year ended
March 31, 2008(b) Intangible 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-ofproduction method.
Other
Other intangible assets are mainly amortized by thestraight-line method.
Software for internal use is being amortized over
five years.

印刷日時:09/05/13 21:11

For the year ended
March 31, 2009(b) Intangible assets (except leased assets)
Exploration and development rights
Same as on the left

Mining rights
Same as on the left
Other
Same as on the left(c) Leased assets
Leased assets for financing lease transactions
whose ownership are not to be transferred:
Depreciation of leased assets are calculated basedon the straight-line method over the lease period
assuming no residual value.

3) Basis for significant allowances

3) Basis for significant allowances(a) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at an
amount determined based on the historical experienceof bad debt with respect to ordinary receivables, plus
an estimate of uncollectible amounts determined byreference to specific doubtful receivables from customers which are experiencing financial difficulties.

―20―(a) Allowance for doubtful accounts
Same as on the left

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For the year ended
March 31, 2008b) 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 amountbased 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, 2008.
(f) Accrued retirement benefits to employees
Accrued retirement benefits to employees areprovided 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 are classified as small enterprises, we employ a simplified method (at the amount which would be
required to be paid if all active 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 retirement benefits to officers
Accrued retirement benefits to officers are statedat the amount which would be required to be paid
as if all officers voluntarily terminated their services as of the balance sheet date based on theirrespective internal rules.

―21―

印刷日時:09/05/13 21:11

For the year ended
March 31, 2009(b) Allowance for recoverable accounts under production sharing
Same as on the left(c) Allowance for investments in exploration
Same as on the left(d) Provision for exploration projects
Same as on the left(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at expected payment amount for the year ended March
31, 2009.
(f) Accrued retirement benefits to employees
Same as on the left(g) Accrued retirement benefits to officers(Additional Information)
Until the previous fiscal year, retirement benefits
to officers had been accrued at the amount which
would have been required to be paid as if all officers voluntarily terminated their services as of thebalance sheet date based on their respective internal rules. However, in this fiscal year, the Company abolished its retirement benefit program to
officers and makes a payment at their retirements,
which is based on the amount to be paid at the
point of abolishment. Accrued retirement benefits
to officers up to point of abolishment are reversed
and unpaid amounts is recorded in Other longterm liabilities.

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For the year ended
March 31, 2008

For the year ended
March 31, 2009(h) Liabilities for site restoration and decommissioning costs
Liabilities for site restoration and decommissioning costs are provided for expected future costs
for site restoration and decommissioning.
(i) Liabilities for losses on development activities
Liabilities for losses on development activities areprovided for provable losses on oil and natural
gas development activities individually estimatedfor each project.
(j) Accrued special repair and maintenanceAccrued special repair and maintenance are provided for planned major repair and maintenanceactivities on tanks in certain subsidiaries at theamount being accumulated through the next activity.

(h) Liabilities for site restoration and decommissioning costs
Same as on the left

―22―(i) Liabilities for losses on development activities
Same as on the left(j) Accrued special repair and maintenanceSame as on the left

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For the year ended
March 31, 2008
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 inforeign currencies are translated into yen at theexchange rates prevailing at the balance sheet
date. The resulting exchange gain or loss iscredited or charged to income.

印刷日時:09/05/13 21:11

For the year ended
March 31, 20094) Translation of consolidated subsidiaries’ significant assets and liabilities denominated in foreign
currencies into yen in preparation of the consolidated financial statements
Same as on the left

The revenue and expense accounts of theoverseas 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 atthe balance sheet date. Translation differences
are presented as a component of translation
adjustments and minority interests.
5) Accounting for important leases
Non-cancelable finance leases are primarily
accounted for as operating leases except thatlease agreements which stipulate the transferof ownership of the leased assets to the lessee
are accounted for as finance leases.
6) Accounting for major hedge transactions(a) Hedge accounting
Simplified accounting method is applied tointerest rate swaps. For certain equity accounted companies, deferred hedge accounting is adopted.
(b) Hedging instruments and hedged items
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 notengage in speculative derivative transactions.
(d) Hedge effectiveness assessment method
Since simplified accounting method is applied, the Company does not perform hedge
effectiveness assessment.

―23―5) Accounting for major hedge transactions(a) Hedge accounting
Same as on the left(b) Hedging instruments and hedged items
Same as on the left(c) Hedging policy
Same as on the left(d) Hedge effectiveness assessment method
Same as on the left

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For the year ended
March 31, 2008

For the year ended
March 31, 20097) 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 and a service contract (buybackarrangement) are recorded as “Recoverable accounts under production sharing”
so long as they are recoverable under theterms of the relevant contract. When the
Company receives the natural gas andcrude oil in accordance with the contract,
an amount corresponding to the purchasecosts of the products (i.e., a cost recovery
portion of the investments) is released
from this account.

6) Other items important to the preparation of the consolidated financial statements(a) Consumption tax
Same as on the left

5. Valuation of assets and liabilities of consolidated
subsidiaries
The assets and liabilities of consolidated subsidiaries are valued at their fair values. However,those whose valuation difference is not material
are valued at their carrying amounts.

5. Valuation of assets and liabilities of consolidated
subsidiaries
Same as on the left

6. Amortization of Goodwill
Goodwill is amortized using a straight-line
method over 20 years.

6. Amortization of Goodwill
Same as on the left

7. Scope of cash and cash equivalents in consolidated
statement of cash flow
Cash (cash and cash equivalents) in the consolidated statement of cash flow consisted of cashon hand, cash in banks which can be withdrawn
on demand, and short-term investments with amaturity of three months or less when purchased
which can easily be converted to cash and are
subject to little risk of change in value.

7. Scope of cash and cash equivalents in consolidated
statement of cash flow
Same as on the left

―24―(b) Recoverable accounts under production sharing
Same as on the left

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ファイル名:④-1H21.3a連結会計方針【済】.doc

印刷日時:09/05/13 21:11(7) Changes to the Basis of Presenting Consolidated Financial Statements
For the year ended
March 31, 2008

For the year ended
March 31, 2009
(Practical Solution on Unification of Accounting
Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements)
Effective the fiscal year ended March 31, 2009, theCompany applies "Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for Consolidated Financial
Statements" (ASBJ Practical Issues Task Force
No.18, May 17, 2006). This does not have significant impact on the consolidated financial statements.
(Accounting Standard for Lease Transactions)
Effective the fiscal year ended March 31, 2009, theCompany applies "Accounting Standard for Lease
Transactions" (ASBJ Statement No.13, revised on
March 30, 2007) and "Guidance on AccountingStandards for Lease Transactions" (ASBJ
Guidance No.16, revised on March 30, 2007) forthe lease transactions, entered into a contract on
and after April 1, 2008, other than the lease transactions which deem to transfer ownership of theleased assets to the lessee. This does not have significant impact on the consolidated financial statements.

(Changes to the Presentation)
For the year ended
March 31, 2008
(Consolidated Balance Sheets)“Deferred tax assets”, previously included in“Other” investments and other assets is separately
presented because its amount exceeded 1% of total
assets. The amount of “Deferred tax assets” as ofMarch 31, 2007 is ¥2,405 million.
(Consolidated Cash Flows)“Accounts receivable-other”, “Accounts payableother” and “Advances received” previously included in “Other” cash flows from operating activities are separately presented due to increase in theirmateriality. The amount of “Accounts receivableother” is ¥(6,617) million, “Accounts payableother” is ¥24,210 million and “Advances received”
is ¥(2,650) million for the year ended March 31,
2007, respectively.

―25―

For the year ended
March 31, 2009

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ファイル名:④-2H21.3b連結BSPLCF注記【済】.doc

印刷日時:09/05/13 21:11(8) Notes to consolidated financial statements(Consolidated balance sheets)
As of March 31, 2008

As of March 31, 2009
*1 Major accounts included in inventories are as follows:
Millions of yen
Merchandise and finished goods
10,703Work in process211
Raw materials and supplies
7,290*1 Accumulated depreciation
Accumulated depreciation of tangible fixed assets is¥447,121 million.

*2 Accumulated depreciation
Accumulated depreciation of tangible fixed assets is¥475,999 million.

*2 The Company has the following investments in
subsidiaries and affiliates:*3 The Company has the following investments in
subsidiaries and affiliates:

Investment securities (equities): ¥36,583 million
Other (investments and other assets) : ¥1,124 million

Investment securities (equities): ¥39,163 million
Other (investments and other assets) : ¥699 million*3 Assets provided as collateral and collateral-backed debt
are as follows:(Collateralized Assets)
Millions of yen*4 Assets provided as collateral and collateral-backed debt
are as follows:(Collateralized Assets)
Millions of yen
Buildings and structures
2,614(2,173)
Wells
6,919(6,919)Machinery, equipments
9,390(9,390)and vehicles
Land
1,826
(660)
Others (tangible fixed
0(0)
assets)Investment securities
7,860
(－)

Buildings and structures
Wells
Machinery, equipments
and vehicles
Land
Others (tangible fixed
assets)Investment securities
Total(Secured debt)
Short-term loans
Accounts payable-other
Long-term debt
Others (long-term
liabilities)
Total

2,446
3,166

(1,962)(3,166)

10,058(10,058)

1,826

(660)

0

(0)

6,512

(－)

24,010(15,848)

95
3,723
13,21816(－)(3,207)(12,411)(－)

17,054(15,618)

Total(Secured debt)
Short-term loans
Accounts payable-other
Long-term debt
Others (long-term
liabilities)
Total

28,611(19,143)

145
5,264
11,49916(－)(4,779)(10,297)(－)

16,925(15,076)

Amounts in parenthesis () above represent foundation
collateral and liabilities.
In addition, investment securities of ¥6,907 million arepledged as collateral for the BTC pipeline project
financing.

Amounts in parenthesis () above represent foundation
collateral and liabilities.
In addition, investment securities of ¥5,507 million arepledged as collateral for the BTC pipeline project
financing.

*4 Accumulated advanced depreciation deducted fromacquisition costs of fixed assets related to contribution
and others was ¥1,374 million for building andstructures, ¥291 million for machinery, equipment andvehicles, and ¥1 million for others (intangible assets).

*5 Accumulated advanced depreciation deducted fromacquisition costs of fixed assets related to contribution
and others was ¥1,374 million for building and structures,¥291 million for machinery, equipment and vehicles, and¥1 million for others (intangible assets).
*6 Accumulated advanced depreciation deducted fromacquisition costs of tangible fixed assets related toapplication of land expropriation law was ¥4 million for
land.

―26―

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印刷日時:09/05/13 21:11

As of March 31, 2008

As of March 31, 2009

5 Contingent liabilities
The Company and its consolidated subsidiaries arecontingently liable as guarantors of indebtedness of thefollowing companies:

7 Contingent liabilities
The Company and its consolidated subsidiaries arecontingently liable as guarantors of indebtedness of thefollowing companies:

Millions of yen
Tangguh Trustee*
17,487
Sakhalin Oil and Gas
5,990
Development Co., Ltd.
INPEX Offshore North Campos,
1,780
Ltd.
Japan Ohanet Oil & Gas Co.,
897
Ltd.
Sakata Natural Gas Co., Ltd.
775
ALBACORA JAPAO
664
PETROLEO LIMITADA
Nippon Oil Exploration
553(Malaysia) Limited.
Fujian Tranche *397
Nippon Oil Exploration
81(Sarawak) Limited.
Employees (housing loans)
449
Total
29,077

Millions of yen
Tangguh Trustee*
18,076
Sakhalin Oil and Gas
4,626
Development Co., Ltd.
Fujian Tranche *4,041
INPEX Offshore North Campos,
3,296
Ltd.
Sakata Natural Gas Co., Ltd.
537
Japan Ohanet Oil & Gas Co.,
290
Ltd.
Employees (housing loans)
365
Total
31,234*Debt for investment funds of Tangguh LNG projectthrough MI Berau B. V. and MI Berau Japan Ltd.

*Debt for investment funds of Tangguh LNG projectthrough MI Berau B. V. and MI Berau Japan Ltd.
In addition, INPEX BTC Pipeline, Ltd., a consolidated
subsidiary, is contingently liable for next scheduled
payment, which is ¥340 million as of the balance sheet
date, as the guarantor of indebtedness of BTC Pipeline
Project Finance under certain conditions.

―27―

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ファイル名:④-2H21.3b連結BSPLCF注記【済】.doc

印刷日時:09/05/13 21:11(Consolidated statements of income)For the year ended March 31, 2008

For the year ended March 31, 2009

*1. Major accounts included in selling, general andadministrative expenses are as follows:*1. Major accounts included in selling, general andadministrative expenses are as follows:

Millions of yen
Personnel expenses
12,433(Including provision for accrued
216)
retirement benefits to officers(Including provision for accrued
retirement benefits to650)
employees(Including provision for accrued
208)
bonuses to officers
Freight expenses
15,041
Depreciation expenses
15,825
Amortization of goodwill
6,616

Millions of yen
Personnel expenses
13,582(Including provision for accrued
66)
retirement benefits to officers(Including provision for accrued
retirement benefits to
1,056)
employees(Including provision for accrued
150)
bonuses to officers
Taxes
9,412
Freight expenses
6,590
Depreciation expenses
17,194
Amortization of goodwill
6,760*2. Research and development expenses included in generaland administrative expenses: ¥2,228 million*2. Research and development expenses included in generaland administrative expenses: ¥642 million*3. Net gain on re-determination of unitized field
The Company re-determined reserves at a certain
unitized field and agreed with other third parties tochange the Companys’ participating interest percentage
retroactively. As a consequence, the Company
recognizes its revenue and expenditure occurred in thepast and records the net gain.
*4. Net gain on taking effect of exploration and production
agreement
Upon taking effect of exploration and production
agreement, the Company retroactively adjusts its
revenue and expenditure occurred in the past andrecords the net gain.

―28―

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印刷日時:09/05/13 21:11(Consolidated statements of changes in net assets)
For the year ended March 31, 2008
1. Type and number of shares issued and outstanding and treasury stock(Shares)

Balance as ofMarch 31, 2007

Balance as ofMarch 31, 2008

Increase

Decrease

Number of shares
Common stock
2,358,409――
Special class share
1
―
―
Total
2,358,410――
Treasury stock
Common stock
1,089
1,007
49
Total
1,089
1,007
49
Notes 1: Increase in treasury stock of common stock is due to purchase of 1,007 odd lot shares.
2: Decrease in treasury stock of common stock is due to sales of 49 odd lot shares.

2,358,409
1
2,358,410
2,047
2,047

2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders held on
June 26, 2007
Board of directors’
meeting held on
November 9, 2007

Type ofshare
Commonstock
Specialclass share
Commonstock
Specialclass share

Cash dividends paid
(Millions of yen)

Dividends per
share
(Yen)

16,5017,000

March 31, 2007

June 27, 2007

0

7,000

March 31, 2007

June 27, 2007

8,248

3,500

September 30, 2007

December 5, 2007

0

3,500

September 30, 2007

December 5, 2007

Entitlement date

Effective date(2) Dividends, of which the entitlement date was in the year ended March 31, 2008, and whose effective date will
be in the next fiscal year
Cash dividends
Dividends
Type of
Source of
Resolution
Entitlement date Effective datepaid
per share
share
dividends(Millions of yen)
(Yen)
Ordinary general
CommonRetained
9,425
4,000 March 31, 2008
June 26, 2008
meeting ofstock
earnings
shareholders held on
SpecialRetained
04,000 March 31, 2008
June 26, 2008
June 25, 2008
class shareearnings―29―

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印刷日時:09/05/13 21:11

For the year ended March 31, 2009
1. Type and number of shares issued and outstanding and treasury stock
Balance as ofMarch 31, 2008

Increase(Shares)
Decrease

Balance as ofMarch 31, 2009

Number of shares
Common stock
2,358,409
02,358,409―
Special class share
1
1
―
―
Total
2,358,410
02,358,410―
Treasury stock
Common stock
2,047
3,340
471
4,916
Total
2,047
3,340
471
4,916
Notes 1: Decrease in common stock is due to extinguishment of fractional part in treasury stock in accordance withabolition of fractional share system.
2: Increased in treasury stock of common stock by 3,340 is due to purchase of odd lot shares and others.
3: Decrease in treasury stock of common stock is due to sales of 471 odd lot shares.
2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders
June 25, 2008
Board of directors’
meetingNovember 11, 2008

Type ofshare
Commonstock
Specialclass share
Commonstock
Specialclass share

Cash dividends paid
(Millions of yen)

Dividends per
share
(Yen)

9,425

4,000

March 31, 2008

June 26, 2008

0

4,000

March 31, 2008

June 26, 2008

9,420

4,000

September 30, 2008

December 19, 2008

0

4,000

September 30, 2008

December 19, 2008

Entitlement date

Effective date(2) Dividends, of which the entitlement date was in the year ended March 31, 2009, and whose effective date will
be in the next fiscal year
Cash dividends
Dividends
Type of
Source of
Resolution
paid
per share
Entitlement date Effective dateshare
dividends(Millions of yen)
(Yen)
Ordinary general
CommonRetained
9,413
4,000 March 31, 2009
June 26, 2009
meeting ofstock
earnings
shareholders
SpecialRetained
04,000 March 31, 2009
June 26, 2009
June 25, 2009class shareearnings―30―

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印刷日時:09/05/13 21:11(Consolidated statements of cash flows)

For the year ended
March 31, 2008

For the year ended
March 31, 2009

*1 Cash and cash equivalents at the end of the*1 Cash and cash equivalents at the end of theperiod are reconciled to the account reported in
the consolidated balance sheet as follows:
Millions of yen
204,596
Cash and deposits
Time deposits for more than(592)
three months and others
Marketable securities
14,589(commercial paper)
Marketable securities
1,676
(MMF)
Marketable securities(certificate of deposit)
Cash and cash equivalents

2,000

period are reconciled to the account reported in
the consolidated balance sheet as follows:
Millions of yen
117,393
Cash and deposits
Time deposits for more than
(2,513)three months and others
Marketable securities
38,994(commercial paper)
Marketable securities
4,999(financial bill)
Marketable securities
1,969
(MMF)
Marketable securities(certificate of deposit)

222,269

Cash and cash equivalents

―31―

2,000
162,844

(Business combination)
Business combination among entities under common control
1.Names of parties to the business combination, nature of business, legal form of the business combination, name of
the combined entity and a summary of the transaction including its purpose(1) Names of parties to the business combination and nature of businessa. INPEX Holdings Inc. (surviving company)
Management of subsidiaries and group companies engaged in surveys, exploration, development, production, andsales of oil, natural gas and other energy resourcesb. INPEX CORPORATION (non-surviving company)
Exploration, development, production, sales of oil, natural gas and other energy resources and investment in suchcompanyc.Teikoku Oil Co., Ltd. (non-surviving company)
Exploration, development, production, sales of oil and natural gas and investment in such company(2) Legal form of the business combination
Absorption merger(3) Name of the combined entity
INPEX CORPORATION(4) Summary of the transaction including its purpose
INPEX Holdings Inc. was established as a joint holding company through stock transfer by INPEXCORPORATION and Teikoku Oil Co., Ltd. on April 3, 2006. The Company, INPEX Holdings Inc. as a surviving
company, merged with INPEX CORPORATION and Teikoku Oil Co., Ltd. on October 1, 2008 to achieve more
efficient and proactive management and changed trade name to INPEX CORPORATION.

2.Summary of accounting treatment
The transaction was treated as a business combination among entities under common control based on "AccountingStandard for Business Combinations" (issued by the Business Accounting Council on October 31, 2003) and"Accounting Standard for Business Combinations and Accounting Standard for Business Divestitur" (ASBJ
Guidance No. 10, last revised on November 15, 2007).

― 32 ―

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印刷日時:09/05/13 21:12(Segment information)
1. Business segment information
For the year ended March 31, 2008
Segment information by business has been omitted because the crude oil and natural gas business accounts for more than 90% of
total sales, operating income and asset.
For the year ended March 31, 2009
Segment information by business has been omitted because the crude oil and natural gas business accounts for more than 90% of
total sales, operating income and asset.

―33―

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印刷日時:09/05/13 21:12

2. Geographical segment information
For the year ended March 31, 2008 (April 1, 2007 through March 31, 2008)(Millions of yen)Eurasia
Middle East (Europe Africa
NIS

Japan

Asia Oceania

93,882452,542

183,878

464,522

8,139

―

―

―

―

93,882452,542

183,878

Operating expenses

61,950165,836

Operating income (loss)

31,932
212,305

I Net sales and operating income
Net sales(1) Sales to third parties(2) Intercompany sales andtransfers between segments
Total

II Assets
Notes:

Eliminations
and other

Consolidated

1,202,965―

1,202,965

―

―

―

―

464,5228,139

1,202,965―

1,202,965

97,842

140,492

16,101

482,2236,530

488,754286,705

86,035

324,030(7,961)

720,741(6,530)714,211360,298

363,183

299,563

60,656

1,296,006

511,893

1,807,900

AmericasTotal

1. Countries and areas are segmented based on their geographic proximity and their mutual operational relationships.
2. Major countries and areas that belong to segments other than Japan are as follows:(1) Asia - Oceania･･････････Indonesia, Australia, East Timor, Vietnam(2) Eurasia (Europe - NIS)･･･Azerbaijan, Kazakhstan,UK(3) Middle East - Africa･････UAE, D.R. Congo, Iran, Libya, Egypt, Algeria, Angola(4) Americas･･････････････Venezuela, Ecuador, USA, Canada, Suriname
3. Unallocated operating expenses included in “Eliminations and other” of ¥10,345 million under the operating expenses aremainly amortization of goodwill and general administrative expenses.
4. Of the figure for assets, ¥515,849 million included in “Eliminations and other” are mainly goodwill, cash and deposit, marketable securities and investment securities concerned with the administrative divisions.
5. Change of classification of region
While the classification of region until the previous fiscal year had been “Japan”, “Asia - Oceania”, “NIS”, “Middle East Africa” and “Americas”, the “NIS” was changed to “Eurasia (Europe - NIS)” due to acquisition of interest in UK project
during the year ended March 31, 2008.

For the year ended March 31, 2009 (April 1, 2008 through March 31, 2009)(Millions of yen)Eurasia
Middle East (Europe Africa
NIS)

Japan

Asia Oceania

93,423435,824

73,687463,150

10,079――――93,423435,824

73,687

Operating expenses

59,540150,415

Operating income (loss)

33,882
208,326

I Net sales and operating income
Net sales(1) Sales to third parties(2) Intercompany sales andtransfers between segments
Total

II Assets
Notes:

Eliminations
and other

Consolidated

1,076,164―

1,076,164

―

―

―

―

463,150

10,079

1,076,164―

1,076,164

39,222

144,459

11,419405,058

7,839

412,898

285,408

34,464

318,691(1,340)671,106(7,839)663,266

409,558

365,913

189,270

85,1681,258,236

509,808

1,768,044

AmericasTotal

1. Countries and areas are segmented based on their geographic proximity and their mutual operational relationships.
2. Major countries and areas that belong to segments other than Japan are as follows:(1) Asia - Oceania･･････････Indonesia, Australia, East Timor, Vietnam(2) Eurasia (Europe - NIS)･･･Azerbaijan, Kazakhstan, UK(3) Middle East - Africa･････UAE, D.R. Congo, Iran, Libya, Egypt, Algeria, Angola(4) Americas･･････････････Venezuela, Ecuador, USA, Canada, Suriname, Brazil
3. Unallocated operating expenses included in “Eliminations and other” of ¥11,129 million under the operating expenses aremainly amortization of goodwill and general administrative expenses.
4. Of the figure for assets, ¥513,129 million included in “Eliminations and other” are mainly goodwill, cash and deposit, marketable securities and investment securities concerned with the administrative divisions.

―34―

更新日時:5/12/2009 9:13:00 AM

ファイル名:④-4H21.3cセグメント-海外売上高【済】.doc

印刷日時:09/05/13 21:12

3. Overseas sales
For the year ended March 31, 2008
Asia - Oceania
I.

Overseas sales (Millions of yen)

381,146

Other

Total

84,470II. Consolidated sales (Millions of yen)

1,202,965

III. Overseas sales as a percentage of consolidated sales (%)
Notes:

465,617

31.7

7.0

38.7

1. Countries and areas are segmented based on their geographic proximity.
2. Major countries and areas that belong to segments other than Japan are as follows:(1) Asia - Oceania････････South Korea, Taiwan, Indonesia, Singapore, Thailand, China,
Philippines, Australia(2) Other･･･････････････USA, Italy
3. Overseas sales consist of export sales of the Company and its domestic consolidated companies and sales (other than exports to Japan) of its foreign consolidated subsidiaries. Overseas sales are totaled up based on final destination.

For the year ended March 31, 2009
Asia - Oceania
I.

Overseas sales (Millions of yen)

371,102

Other

Total

46,280II. Consolidated sales (Millions of yen)

1,076,164

III. Overseas sales as a percentage of consolidated sales (%)
Notes:

417,383

34.5

4.3

38.8

1. Countries and areas are segmented based on their geographic proximity.
2. Major countries and areas that belong to segments other than Japan are as follows:(1) Asia-Oceania･････････South Korea, Taiwan, Indonesia, Singapore, Thailand, China,
Philippines, Australia(2) Other･･･････････････USA
3. Overseas sales consist of export sales of the Company and its domestic consolidated companies and sales (other than exports to Japan) of its foreign consolidated subsidiaries. Overseas sales are totaled up based on final destination.

―35―

更新日時:5/11/2009 6:57:00 PM

ファイル名:④-5H21.3d連結一株後発開示の省略【済】.DOC

印刷日時:09/05/13 21:13(Per share information)

For the year ended
March 31, 2008
Net assets excluding minority interests
per share
Net income per share
Notes:For the year ended
March 31, 2009

¥491,168.09¥73,510.14

Net assets excluding minority
interests per share
Net income per share¥61,601.60

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, 2008
Net income (Millions of yen)Note:¥540,100.10

173,245

For the year ended
March 31, 2009
145,062

Amount not attributable to common――
stockholders (Millions of yen)
Net income attributable to common
173,245
145,062
stockholders (Millions of yen)
2,354,852
Average number of shares (shares)
2,356,759
2,354,851
Common stock
2,356,758
Common stock equivalent share;
11Special class share
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.

―36―

更新日時:5/11/2009 6:57:00 PM

ファイル名:④-5H21.3d連結一株後発開示の省略【済】.DOC

印刷日時:09/05/13 21:13(Significant subsequent events)
None(Omissions of disclosure)With respect to information for leases, related party transactions, tax accounting, securities, derivatives and retirement
benefits plan respective disclosure has been omitted because it does not have significant impact on the consolidated
financial statements.

―37―更新日時:5/13/2009 10:28:00 AM 印刷日時:09/05/13 21:13

ファイル名:⑤-1H21.3a個別BS【単体分修正版】.DOC

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

As of March 31, 2008

As of March 31, 2009

722
―
7,994
―

30,067
19,875
119,174
3,327

―

79

―
―
136
33

2,512
124
230
―

―

49,7113,253
3―
12,142

13,3535,499(48)
243,908

―
―
―
―
―
33
―
―
427
461

9,426
85,544
8,156
22,82722
771
15,140207
29,021
171,117

―
―
1,499
―
1,499

118,200
0
2,888
1,056
122,144

2,999

212,190793,906

413,878

―

0

―

194

―

28

―

56

―

43,473――17
12,202―

136,795(Assets)
Current assets
Cash and deposits
Accounts receivable-tradeMarketable securities
Finished goods
Work in process and partly-finished construction
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable to subsidiaries andaffiliates
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings, net
Structures, net
Wells, net
Machinery and equipment, net
Vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total tangible fixed assets
Intangible assets
Goodwill
Mining right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in stock of subsidiaries andaffiliates
Investments in capital
Investments in capital of subsidiaries andaffiliates
Long-term loans receivable
Long-term loans receivable from employees
Long-term loans receivable from subsidiaries and affiliates
Long-term prepaid expenses
Real estate for investment, net
Recoverable accouts under production
sharing―38―

更新日時:5/13/2009 10:28:00 AM 印刷日時:09/05/13 21:13

ファイル名:⑤-1H21.3a個別BS【単体分修正版】.DOC(Millions of yen)Accounts

As of March 31, 2008

As of March 31, 2009

1,555
―

10,004
(526)

―

(957)

―
798,461
800,422
812,565(162,862)
664,496
957,759
1,201,667

Other
Allowance for doubtful accounts
Allowance for recoverable accounts under production sharing
Allowance for investments in exploration
Total investments and other assets
Total fixed assets
Total assets―39―

更新日時:5/13/2009 10:28:00 AM 印刷日時:09/05/13 21:13

ファイル名:⑤-1H21.3a個別BS【単体分修正版】.DOC(Millions of yen)Accounts

As of March 31, 2008

(Liabilities)
Current liabilities
Accounts payable-trade

As of March 31, 2009

―

1,691

Current portion of long-term loans payable

―

4,210

Lease obligations

―

84

203
42
44
―
―
34
113
―
439

21,3382,101
26,730
207
131
806
113
84
57,498

―
―
10
―
227

18,123
121
6,203
7,990
―

―

228

―

1,830

―
237
676

1,184
35,683
93,18230,00030,000762,9922
762,994

762,992―
762,992―
21,09221,092(2,215)
811,872

4,112
321,793
325,905(5,248)
1,113,649

16(5,164)16(5,164)

811,888812,565

1,108,485
1,201,667

Accounts payable-otherAccrued expenses
Income taxes payable
Deferred tax liabilities
Advances received
Deposits payable
Accrued bonuses to officers
Other
Total current liabilities
Long-term liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Accrued retirement benefits to employees
Accrued retirement benefits to officers
Liabilities for site restoration and decommissioning costs
Provision for loss on business of subsidiaries
and affiliates
Other
Total long-term liabilities
Total liabilities(Net assets)
Shareholders’ equity
Common stock
Capital surplus
Capital reserve
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
Mine prospecting reserve
Unappropriated retained earnings
Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation, translation adjustments and others
Unrealized holding gain on securities
Total valuation, translation adjustments andothersTotal net assets
Total liabilities and net assets―40―

更新日時:5/12/2009 5:27:00 PM 印刷日時:09/05/13 21:14

ファイル名:⑤-2H21.3b個別PL【単体分】.DOC(2) Non-consolidated statements of income(Millions of yen)Accounts

For the year ended March 31, 2008

For the year ended March 31, 2009―

151,451

Operating revenues
Net sales
Dividends income

15,624

9,433

Management consulting fee income

2,769

2,617

Total operating revenue

18,394

163,502

Cost of sales―

50,021Gross profit

18,394

113,481―

1,467

Selling, general and administrative expenses

2,769

22,624

Operating income

15,62489,389Interest income

24

1,585

Interest income-securities

73

1,115

Dividends income―

28,559Interest on refund of income taxes and other

17

―

Other

0

2,497

115

33,758Interest expense
Provision of allowance for investments
in exploration
Loss on valuation of investment securities

―

174

―

4,816

―

26,700Foreign exchange losses―

12,017

Commissions

1

―

Other

0

815

Exploration expenses

Other income

Total other income
Other expenses

Total other expenses

1

44,524

15,73878,623Gain on extinguishment of tie-in shares―

266,950

Total extraordinary income―

266,950

Income before income taxes

15,738345,574169

36,479

Income taxes-deferred(8)(14,578)

Total income taxes

161

21,901

15,576323,672

Ordinary income
Extraordinary income

Income taxes-current

Net income― 41 ―

更新日時:5/12/2009 5:28:00 PM

ファイル名:⑤-3H21.3c連結変動計算書【単体分】.doc

印刷日時:09/05/13 21:14(3) Non-consolidated statements of changes in net assets(Millions of yen)
For the year ended
March 31, 2008

For the year ended
March 31, 2009

30,00030,00030,00030,000

Balance at beginning of the period

762,992

762,992

Balance at end of the period

762,992

762,992―2

Disposal of treasury stock2(2)

Total changes during the period

2

(2)

2

―

762,992

762,994

Disposal of treasury stock2(2)

Total changes during the period

2(2)762,994

762,992――

Provision of mine prospecting reserve

―

4,112

Total changes during the period

―

4,112

―

4,112

30,26521,092―(4,112)

Dividends from surplus(24,749)(18,846)

Net income

15,576323,672

Accounts
Shareholders’ equity
Common stock
Balance at beginning of the period
Balance at end of the period
Capital surplus
Legal capital surplus

Other capital surplus
Balance at beginning of the period
Changes during the period

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

Balance at end of the period
Retained earnings
Other retained earnings
Mine prospecting reserve
Balance at beginning of the period
Changes during the period

Balance at end of the period
Retained earnings brought forward
Balance at beginning of the period
Changes during the period
Provision of mine prospecting reserve

―

(13)

(9,173)

300,700

21,092

321,793

30,26521,092――

Dividends from surplus(24,749)(18,846)

Net income

15,576323,672―(13)

Disposal of treasury stock
Total changes during the period
Balance at end of the period
Total retained earnings
Balance at beginning of the period
Changes during the period
Provision of mine prospecting reserve

Disposal of treasury stock―42―

更新日時:5/12/2009 5:28:00 PM

ファイル名:⑤-3H21.3c連結変動計算書【単体分】.doc

For the year ended
March 31, 2008

Accounts

印刷日時:09/05/13 21:14

For the year ended
March 31, 2009

(9,173)304,812

21,092

325,905

Balance at beginning of the period(1,108)(2,215)

Changes during the period
Purchase of treasury stock(1,159)(3,563)

Disposal of treasury stock

52

530

(1,106)(3,032)(2,215)(5,248)822,149

811,872

Cash dividends paid

(24,749)(18,846)

Net income
Purchase of treasury stock

15,576323,672(1,159)(3,563)

Disposal of treasury stock

54

514

(10,277)

301,777

811,872

1,113,649

Total changes during the period
Balance at end of the period
Treasury stock

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

Total changes during the period
Balance at end of the period―43―

更新日時:5/12/2009 5:28:00 PM

ファイル名:⑤-3H21.3c連結変動計算書【単体分】.doc

印刷日時:09/05/13 21:14(Millions of yen)
For the year ended
March 31, 2008

Accounts

For the year ended
March 31, 2009

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

4

16

12

(5,181)

12(5,181)16(5,164)4

16

12(5,181)

12(5,181)16(5,164)

822,153

811,888

Cash dividends paid

(24,749)(18,846)

Net income
Purchase of treasury stock

15,576323,672(1,159)(3,563)

Disposal of treasury stock

54

514

Other changes in items other than those inshareholders’ equity (net)12(5,181)

Changes during the period
Other changes in items other than those inshareholders’ equity (net)Total changes during the period
Balance at end of the period
Total valuation and translation adjustments
Balance at beginning of the period
Changes during the period
Other changes in items other than those inshareholders’ equity (net)Total changes during the period
Balance at end of the period
Total net assets
Balance at beginning of the period
Changes during the period

Total changes during the period
Balance at end of the period―44―(10,265)

296,596

811,888

1,108,485更新日時:5/12/2009 4:21:00 PM

ファイル名:⑤-4H21.3d個別注記事項【済】.doc

印刷日時:09/05/13 21:14(4) Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern
None(5) Notes to Non-Consolidated Financial Statements(Business Combination)
This note is omitted since it is mentioned in consolidated section above.
Under the provisions of "Accounting Standard for Business Combination," the Company’s absorption merger of INPEXCORPORATION and Teikoku Oil Co., Ltd. was accounted for as a business combination among entities under common
control. At March 31, 2009, the Company recorded a ¥266,950 million "Gain on extinguishment of tie-in shares" as
Extraordinary income for the difference between the amount of shareholder's capital received by the Company as part of the
net assets of the dissolved subsidiaries and the book value of its shares in these subsidiaries immediately prior to the merger.

―45―

2ファイル名:

6 Other(1) Changes in directors and statutory auditors of the Company
Not applicable for the current fiscal year. Information will be disclosed promptly at the point of which disclose is required.
(2) Production, orders received and sales performance1) Actual production
The following table shows actual production by business segment during each period:
For the year ended
For the year ended
Business segment
Category
March 31, 2008
March 31, 2009

Crude oil andnatural gas

Crude oil88 MMbbls(242 Mbbls per day)81 MMbbls(223 Mbbls per day)Natural gas

398 Bcf(1,089 MMcf per day)

398 Bcf(1,090 MMcf per day)Subtotal

155 MMboe(423 Mboe per day)

148 MMboe(405 Mboe per day)Petroleumproducts

232 Mkl(1,458 Mbbls)

236 Mkl(1,484 Mbbls)

490 tons

496 tons

106 millions kWh

109 millions kWh

IodineElectric power
generation
Notes:

1. The volume of LPG produced overseas is included in ‘Crude oil.’ On the other hand, the amount of LPG
produced in the domestic 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 year ended March 31 regardless of a closing date on
the basis of fiscal periods of its subsidiaries or affiliates.
5. The production volume of crude oil and natural gas under the production sharing contracts entered by
INPEX Group corresponds to the net economic take of our group.
Figures calculated by multiplying the gross production volume by our company’s interest share are 117
MMbbls (322 Mbbls per day) of crude oil, 702 Bcf (1,923 MMcf per day) of natural gas, and in total 234
MMboe (642 Mboe per day).
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 on consignment by another company.
9. Figures are rounded to nearest whole number.

2) Orders received
This information is not disclosed since the amount of orders received accounted for a minor portion of total sales. In
addition, there is no production for orders received in crude oil and natural gas business.

― 46 ―

2ファイル名:

3) Actual salesa) The Company takes back full amount of the allocated crude oil produced overseas under production sharing
contracts and concession agreements, and sell it to domestic and foreign customers. The Company sells natural gas
produced in Indonesia in the form of LNG to Japanese power companies, city gas companies and customers in South
Korea, Taiwan and other countries through PERTAMINA. In addition, the Company sells natural gas produced inJapan to customers using our pipeline.
b) Sales by business segment during each period were as follows:(Millions of yen)
For the year ended
For the year ended
Business segment
Category
March 31, 2008
March 31, 2009
Crude Oil

85,716 Mbbls 783,465

Crude oil andnatural gas

650,352

401,076 MMcf

402,081 MMcf
Natural Gas

75,427 Mbbls

398,266

391,090
LPG: 1,549 Mbbls

LPG: 2,067 Mbbls

Others26,47925,693

Subtotal

1,201,035

1,074,312

1,929

1,852

1,202,965

1,076,164

Other
Total

Notes: 1. The above amounts do not include the related consumption tax.
2. The Companys’ 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
statement for consolidation purpose as of the consolidation closing date. However, the significant effects of thedifference in fiscal periods were properly adjusted in consolidation.
3. Sales volumes are rounded to nearest whole number.
4. Sales for major customers and sales as a percentage of total net sales are as follows. Sales amount of PERTAMINA
consists mostly of natural gas and over half of them are sold to Japanese customers in the form of LNG.

Customer

PERTAMINA

For the year ended
March 31, 2008
AmountRatio（％）（Millions of yen）

For the year ended
March 31, 2009
Ratio
Amount（％）（Millions of yen）

309,750

315,88925.7― 47 ―

29.4