Consolidated Financial Results for the Three Months ended March 31, 2022 [Japanese GAAP]May 11, 2022
Note: The following report is an English translation of the Japanese-language original.
Company name

: INPEX CORPORATION

Code number
Representative
Contact person: 1605
URL https://www.inpex.co.jp: Takayuki Ueda, President: Munehiro Hosono, General Manager, Corporate Communications Unit

Stock Exchange on which the Company is listed

TEL+81-3-5572-0233
Scheduled date of filing Quarterly Financial Report: Tokyo Stock Exchange: May 12, 2022:－

Scheduled date of payment of cash dividends
Preparation of supplementary explanatory materials
Meeting of quarterly financial results presentation: Yes: None(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for the Three Months ended March 31, 2022 (January 1, 2022 - March 31, 2022)(1) Consolidated operating results(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales
For the three months ended

Operating income

Net income attributableto owners of parent

Ordinary income

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

485,391
243,697

99.2
(2.4)

228,315106,054115.3
5.1

277,865
106,043

162.0
(1.6)

94,08738,183

146.4
13.7

March 31, 2022
March 31, 2021

(Note): Consolidated comprehensive income: for the three months ended March 31, 2022, ¥272,985 million; (39.5%)
for the three months ended March 31, 2021, ¥195,658 million; (－%)

Net income pershare-basic

Net income pershare-diluted

For the three months ended

Yen

Yen

March 31, 2022
March 31, 2021

67.86
26.15

－
－

(2) Consolidated financial position
Total assets

Net assets

Net assets excluding non-controllinginterests as a percentage of total assets

Millions of Yen

Millions of Yen%

As of March 31, 2022

5,759,754

3,602,168

58.2

As of December 31, 2021

5,158,196

3,346,409

60.6(Reference): Net assets excluding non-controlling interests: as of March 31, 2022, ¥3,353,919 million
as of December 31, 2021, ¥3,124,065 million

2. Dividends
Cash dividends per share
At 1st quarter end At 2nd quarter end At 3rd quarter end
For the year ended
December 31, 2021
For the year ending
December 31, 2022
For the year ending
December 31, 2022
(forecast)At fiscal year end

Total

Yen

Yen

Yen

Yen

Yen

－

20.00

－

28.00

48.00

27.00

－

27.00

54.00

－

(Note): 1. Changes in projected dividends for the year ending December 31, 2022 from the previous forecast: None
2. “Dividends” as stated above refer to common stock. For information regarding Class A stock (not listed), please refer to Exhibit “Dividends of Class A
stock”.

3. Forecasts for Consolidated Financial Results for the year ending December 31, 2022 (January 1, 2022 - December 31, 2022)(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales
Millions of Yen

For the six months ending
June 30, 2022
For the year ending
December 31, 2022

Operating income% Millions of Yen% Millions of Yen

1,019,000 104.5

535,000 139.2

1,851,000

924,000

48.8

56.4

Net income
attributable toowners of parent

Ordinary income% Millions of Yen

613,000 178.8
1,042,000

58.4

Net income
per share%Yen

200,000 284.7

144.25300,000

216.3734.5(Note): Changes in forecasts for consolidated financial results for the year ending December 31, 2022 from the previous forecast: Yes

Notes(1) Significant changes in scope of consolidation(Changes in the specified subsidiaries during the period due to change in scope of consolidation): None(2) Adoption of accounting treatments which are exceptional for quarterly consolidated financial statements: None(3) Changes in accounting policies, accounting estimates and restatement of corrections
1. Changes in accounting policies resulting from the revision of the accounting standards and other regulations
2. Other changes in accounting policies
3. Changes in accounting estimates
4. Restatement of corrections: Yes: None: Yes: None(Note): Please refer to “2. Consolidated Financial Statements and Principal Notes (3) Notes to Consolidated Financial Statements (Changes in Accounting

Policies) and (Changes in Accounting Estimates)” on page 9 and 10 for further information.

(4) Number of shares issued (Common stock)
1. Number of shares issued at the end of the period(including treasury stock):
2. Number of treasury stock at the end of the period:
3. Average number of shares:

1,386,667,167 shares as of March 31, 2022
1,462,323,600 shares as of December 31, 2021
147,219 shares as of March 31, 2022
75,805,993 shares as of December 31, 2021
1,386,518,175 shares for the three months ended March 31, 2022
1,460,204,531 shares for the three months ended March 31, 2021

(Note): The shares held by “the Board Incentive Plan Trust” are included in number of treasury stock at end of period.
(As of March 31, 2022: 147,219 shares As of December 31, 2021: 149,593 shares)*This quarterly earnings report is not subject to audit by certified public accountants or audit firms.
*Explanation regarding the appropriate use of estimated consolidated financial results
The aforementioned forecasts are based on the currently available information and contain many uncertainties. The final results might be significantly different
from the aforementioned forecasts due to changes in business conditions including oil and natural gas price levels, production and sales plans, project
development schedules, government regulations and financial and tax schemes. Regarding the forecasts, please refer to “1. Qualitative Information / Financial
Statements (3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results” on page 4.

Exhibit:
Dividends of Class A stock
Cash dividends per share
At 1st quarter end At 2nd quarter end At 3rd quarter end
For the year ended
December 31, 2021
For the year ending
December 31, 2022
For the year ending
December 31, 2022
(forecast)At fiscal year end

Total

Yen

Yen

Yen

Yen

Yen

－

8,000.00－

11,200.00

19,200.00

10,800.00－

10,800.00

21,600.00－(Note): The Company conducted a stock split at a ratio of 1:400 of common stock effective October 1, 2013. However, for Class A stock (not listed), no stock

split was implemented. The article specifying that dividends of Class A stock are equivalent to dividends of common stock prior to the stock split isincluded in the Articles of Incorporation.

Index of the Attachments
1. Qualitative Information / Financial Statements …………………………………………………………………………………
(1) Explanation on Consolidated Financial Results ………………………………………………………………………………
(2) Explanation on Consolidated Financial Position ……………………………………………………………………………

2
23(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results …………………
2. Consolidated Financial Statements and Principal Notes ………………………………………………………………………

4
5(1) Consolidated Balance Sheet …………………………………………………………………………………………………

5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ………………………………
Consolidated Statement of Income ……………………………………………………………………………………………
Consolidated Statement of Comprehensive Income …..………………………………………………………………………
(3) Notes to Consolidated Financial Statements …………………………………………………………………………………

7
7
8
9

(Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern) ………………………………………………………………………
(Note on significant changes in shareholders’ equity) ………………………………………………………………………
(Changes in Accounting Policies) ……………………………………………………………………………………………

9
9
9(Changes in Accounting Estimates) …………………………………………………………………………………………
(Segment Information) ………………………………………………………………………………………………………

10
11(Significant Subsequent Events) ……………………………………………………………………………………………

11

3. Supplementary Information ……………………………………………………………………………………………………
(1) Production, Orders Received and Sales Performance ………………………………………………………………………

12
12

- 1 -

1. Qualitative Information ⁄ Financial Statements(1) Explanation on Consolidated Financial Results
Net sales for the three months ended March 31, 2022 increased by ¥241.6 billion, or 99.2%, to ¥485.3 billion from thecorresponding period of the previous fiscal year due to an increase in sales price of crude oil and natural gas.
Net sales of crude oil increased by ¥180.9 billion, or 103.7%, to ¥355.4 billion, and net sales of natural gas increased by ¥59.2
billion, or 91.6%, to ¥123.9 billion.
Sales volume of crude oil increased by 7,935 thousand barrels, or 29.1%, to 35,176 thousand barrels, and sales volume of natural
gas increased by 5,430 million cf, or 4.5%, to 125,785 million cf. Sales volume of overseas natural gas increased by 3,922 million
cf, or 4.1%, to 99,215 million cf, and sales volume of domestic natural gas increased by 40 million ㎥, or 6.0%, to 712 million ㎥(26,570 million cf).
The average sales price of overseas crude oil increased by US$26.54, or 44.0%, to US$86.92 per barrel. The average sales price ofoverseas natural gas increased by US$2.84, or 75.9%, to US$6.58 per thousand cf, and the average sales price of domestic natural
gas increased by ¥28.69, or 74.9%, to ¥66.98 per ㎥. The average exchange rate of the Japanese yen against the U.S. dollar on
consolidated net sales depreciated by ¥9.90, or 9.3%, to ¥116.03 per U.S. dollar.
The increase of ¥241.6 billion in net sales was mainly derived from the following factors: regarding net sales of crude oil andnatural gas, an increase in sales volume contributing ¥53.1 billion to the increase, an increase in unit sales price contributing ¥150.3
billion to the increase, the depreciation of the Japanese yen against the U.S. dollar contributing ¥36.7 billion to the increase, and anincrease in net sales excluding crude oil and natural gas of ¥1.4 billion.
Meanwhile, cost of sales increased by ¥109.2 billion, or 93.9%, to ¥225.5 billion. Exploration expenses increased by ¥5.1 billion, or
404.3%, to ¥6.4 billion. Selling, general and administrative expenses increased by ¥5.0 billion, or 25.0%, to ¥25.0 billion. As aresult, operating income increased by ¥122.2 billion, or 115.3%, to ¥228.3 billion.
Other income increased by ¥39.2 billion, or 181.2%, to ¥60.8 billion due to posting equity in earnings of affiliates and others.
Other expenses decreased by ¥10.3 billion, or 47.7%, to ¥11.3 billion due to a decrease in foreign exchange loss and others. As aresult, ordinary income increased by ¥171.8 billion, or
162.0%, to ¥277.8 billion.
Total amount of current income taxes and deferred income taxes increased by ¥103.8 billion, or 129.1%, to ¥184.2 billion, and net
loss attributable to non-controlling interests was ¥0.4 billion. As a result of the above effects, net income attributable to owners ofparent increased by ¥55.9 billion, or 146.4%, to ¥94.0 billion.
Financial results by segment are as follows:
1) JapanNet sales increased by ¥23.2 billion, or 73.7％, to ¥54.6 billion due to an increase in sales price of natural gas.
Operating loss was ¥10.6 billion compared with ¥3.1 billion of operating income for the corresponding period of the previous fiscal
year due to an increase in cost of sales.
2) Asia & Oceania
Net sales increased by ¥55.4 billion, or 82.1％, to ¥123.0 billion due to an increase in sales price of crude oil and natural gas.
Operating income increased by ¥36.7 billion, or 121.6％, to ¥66.8 billion.
3) Eurasia (Europe & NIS)
Net sales increased by ¥64.5 billion, or 286.2％, to ¥87.1 billion due to increases in sales volume and sales price of crude oil.
Operating income increased by ¥39.6 billion to ¥43.2 billion.
4) Middle East & Africa
Net sales increased by ¥96.7 billion, or 82.9％, to ¥213.3 billion due to increases in sales volume and sales price of crude oil.
Operating income increased by ¥57.3 billion, or 80.9％, to ¥128.2 billion.
5) Americas
Net sales increased by ¥1.7 billion, or 32.0％, to ¥7.1 billion due to an increase in sales price of crude oil.
Operating income increased by ¥1.8 billion, or 65.5％, to ¥4.5 billion.

- 2 -(2) Explanation on Consolidated Financial Position
Total assets as of March 31, 2022 increased by ¥601.5 billion to ¥5,759.7 billion from ¥5,158.1 billion as of December 31, 2021.
Current assets increased by ¥244.5 billion to ¥763.4 billion due to an increase in cash and deposits and others. Fixed assets increasedby ¥356.9 billion to ¥4,996.3 billion due to increases in tangible fixed assets, investments and other assets, and others.
Meanwhile, total liabilities increased by ¥345.8 billion to ¥2,157.5 billion from ¥1,811.7 billion as of December 31, 2021. Current
liabilities increased by ¥136.8 billion to ¥485.7 billion and long-term liabilities increased by ¥208.9 billion to ¥1,671.8 billion.
Net assets increased by ¥255.7 billion to ¥3,602.1 billion. Total shareholders’ equity increased by ¥55.8 billion to ¥2,736.4 billion.
Total accumulated other comprehensive income increased by ¥173.9 billion to ¥617.4 billion and non-controlling interests in net
assets increased by ¥25.9 billion to ¥248.2 billion.

- 3 -(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results
Crude oil and natural gas production operations largely progressed steadily, and forecasts for consolidated financial results for thesix months ending June 30, 2022 and the year ending December 31, 2022 have been revised from those announced on February 9,2022 as follows due to factors including the upturn in crude oil prices for the three months ended March 31, 2022 and the revisionof its crude oil price assumptions for the year as well as the depreciation of the Japanese yen against the U.S. dollar.
Forecasts for consolidated financial results for the six months ending June 30, 2022
(Millions of yen)
Net sales

Operating income

Ordinary income

Net income attributableto owners of parent

Previous Forecasts: A

820,000

394,000

466,000

150,000

Revised Forecasts: B

1,019,000

535,000

613,000

200,000

199,000

141,000

147,000

50,000

24.3

35.8

31.5

33.3

Increase (Decrease): B-A
Percentage change (%)

Forecasts for consolidated financial results for the year ending December 31, 2022
(Millions of yen)
Net sales

Operating income

Ordinary income

Net income attributableto owners of parent

Previous Forecasts: A

1,541,000

716,000

824,000

250,000

Revised Forecasts: B

1,851,000

924,000

1,042,000

300,000

310,000

208,000

218,000

50,000

20.1

29.1

26.5

20.0

Increase (Decrease): B-A
Percentage change (%)

The above forecasts are calculated based on the following assumptions:
Previous Forecasts

Crude oil price (Brent)

Exchange rate

Revised Forecasts

First Half average:

US$80.0/bbl

First Half average:

US$95.0/bbl

Second Half average:

US$70.0/bbl

Second Half average:

US$75.0/bbl

・3rd quarter average: US$75.0/bbl

・3rd quarter average: US$80.0/bbl

・4th quarter average: US$65.0/bbl

・4th quarter average: US$70.0/bbl

Full Year average:

US$75.0/bbl

Full Year average:

US$85.0/bbl

First Half average:¥110.0/US$

First Half average:¥120.0/US$

Second Half average:¥110.0/US$

Second Half average:¥120.0/US$

Full Year average:¥110.0/US$

Full Year average:¥120.0/US$

Note: Crude oil prices at which the Company sells products vary depending on crude oil type and differ from Brent crude oil prices. Crude oil price differences are
determined by the quality of each crude oil type, etc., and are also affected by market conditions.

- 4 -2. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheet(Millions of yen)Accounts

As of December 31, 2021

As of March 31, 2022

(Assets)
Current assets
Cash and deposits

201,765

334,468

Accounts receivable-trade168,224－－

240,749

Inventories

47,81752,256

Other

113,161

148,850

Less allowance for doubtful accounts(12,104)(12,878)

Total current assets

518,864

763,446

Buildings and structures, net

163,165

161,775

Wells, net

345,946

398,393

Accounts receivable-trade and contract assets

Fixed assets
Tangible fixed assets

Machinery, equipment and vehicles, net

1,418,656

1,556,056

Land

18,666

18,692

Construction in progress

292,836

273,278

Other, net

20,57820,734

2,259,849

2,428,929

Goodwill

29,55044,016

Other

417,110440,636

Total intangible assets

446,660

484,653

403,356

533,300

1,011,801

1,034,894

Recoverable accounts under production sharing

548,170

534,880

Other

33,41739,958

(652)

(695)

Less allowance for recoverable accounts under
production sharing(61,871)(58,280)

Less allowance for investments in exploration(1,400)(1,333)

1,932,821

2,082,724

4,639,332

4,996,308

5,158,196

5,759,754

Total tangible fixed assets
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

Less allowance for doubtful accounts

Total investments and other assets
Total fixed assets
Total assets- 5 -(Millions of yen)Accounts

As of December 31, 2021

As of March 31, 2022

(Liabilities)
Current liabilities
Accounts payable-trade

14,88853,577

Short-term loans

80,493

91,232

Income taxes payable

51,350100,229

Provision for bonuses

1,386

－

Provision for bonuses to officers

200

35

Provision for loss on business

9,400

8,811

Provision for exploration projects

9,444

10,449

672

3,704

Other

181,051

217,738

Total current liabilities

348,888

485,778

Bonds payable

30,00030,000Long-term debt

1,069,721

1,175,240

Provision for stocks payment

100

106

Provision for special repair and maintenance

650

680

Liability for retirement benefits

7,048

8,621

Asset retirement obligations

258,339

334,519

Other

97,037

122,638

1,462,897

1,671,807

1,811,786

2,157,586

Common stock

290,809290,809

Capital surplus

681,398

681,999

Retained earnings

1,783,841

1,763,854

Asset retirement obligations

Long-term liabilities

Total long-term liabilities
Total liabilities(Net assets)
Shareholders’ equity

Treasury stock
Total shareholders’ equity(75,425)(174)

2,680,624

2,736,489

Accumulated other comprehensive income
Unrealized holding gain (loss) on securities

2,640

3,901

Deferred gain (loss) on hedges(16,171)(4,608)Translation adjustments

456,972

618,136

Total accumulated other comprehensive income

443,441

617,429

Non-controlling interests

222,344248,249

Total net assets

3,346,409

3,602,168

Total liabilities and net assets

5,158,196

5,759,754- 6 -(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)
For the three months ended
March 31, 2021

For the three months ended
March 31, 2022

Net sales

243,697

485,391

Cost of sales

116,320

225,554

Gross profit

127,377

259,836

Accounts

Exploration expenses

1,284

6,479

Selling, general and administrative expenses

20,03825,041

Operating income

106,054

228,315Interest income

8,252

8,784

Dividend income

2,494

6,471

－

34,350

1,924

2,989

Other

8,981

8,283

Total other income

21,65360,879Other income

Equity in earnings of affiliates
Gain on reversal of allowance for recoverable accounts
under production sharing

Other expenses
Interest expense

3,523

3,777

Equity in losses of affiliates

2,028

－

Foreign exchange loss

10,932

3,929

Other

5,180

3,621

Total other expenses

21,664

11,329Ordinary income

106,043

277,865

Income before income taxes

106,043

277,865

Income taxes-current

74,088167,470

Income taxes-deferred

6,337

16,757

Total income taxes

80,425

184,227

Net income

25,617

93,637Net loss attributable to non-controlling interests(12,565)(449)

Net income attributable to owners of parent

38,18394,087- 7 -Consolidated Statement of Comprehensive Income(Millions of yen)
For the three months ended
March 31, 2021

For the three months ended
March 31, 2022

25,617

93,637

Unrealized holding gain (loss) on securities

2,181

1,308

Deferred gain (loss) on hedges(597)(9,449)145,429

161,508

23,02825,980170,041

179,347

195,658

272,985

Owners of parent

203,195

268,075

Non-controlling interests(7,537)4,909

Accounts

Net income
Other comprehensive income

Translation adjustments
Share of other comprehensive income of associates
accounted for by the equity method
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to- 8 -(3) Notes to Consolidated Financial Statements(Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern)
For the three months ended March 31, 2022 (January 1, 2022 through March 31, 2022):
None(Note on significant changes in shareholders’ equity)
For the three months ended March 31, 2022 (January 1, 2022 through March 31, 2022):
None(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition and others)
Effective from the beginning of the three months ended March 31, 2022, the Group applied “Accounting Standard for Revenue
Recognition” (ASBJ Statement No.29, March 31, 2020, hereinafter referred to as “Revenue Recognition Accounting Standard”)
and others. Under the Revenue Recognition Accounting Standard and others, revenue is recognized when the control of thepromised goods or services is transferred to the customer at the amount expected to be received in exchange for the goods orservices.
The main changes resulting from the application of the Revenue Recognition Accounting Standard and others are as follows.
1. Non-monetary exchanges
For non-monetary exchanges of petroleum products which have the same nature and value between entities in the same line ofbusiness, the Group has changed the practice to recognize revenue based on a net amount.
2. Light oil delivery taxes
For light oil delivery taxes which fall under the amount collected for third parties, the Group changed the practice to recognize
revenue at an amount excluding light oil delivery taxes from consideration for transactions.
In accordance with the transitional treatment provided in the provisory clause of paragraph 84 of the Revenue Recognition
Accounting Standard, the cumulative effect at the end of previous fiscal year from retrospective application of the Revenue
Recognition Accounting Standard is treated as adjustment to retained earnings at the beginning of the three months ended March
31, 2022, and the new accounting policy is applied from the adjusted beginning balance of retained earnings.
As a result, the consolidated net sales and cost of sales for the three months ended March 31, 2022 decreased by ¥452 million,
respectively, and there was no effect on operating income, ordinary income, and income before income taxes. In addition, there
was also no effect on the beginning balance of retained earnings for the three months ended March 31, 2022.
Due to the application of Revenue Recognition Accounting Standard and others, “Accounts receivable-trade” under current assetsof the consolidated balance sheet as of December 31, 2021 has been included in “Accounts receivable-trade and contract assets”
under current assets from the consolidated balance sheet as of March 31, 2022.
In accordance with the transitional treatment provided for in paragraph 89-2 of the Revenue Recognition Accounting Standard,
figures as of December 31, 2021 have not been restated in accordance with the new approach to presentation.
(Application of Accounting Standard for Fair Value Measurement and others)
Effective from the beginning of the three months ended March 31, 2022, the Group applied “Accounting Standard for Fair Value
Measurement” (ASBJ Statement No.30, July 4, 2019, hereinafter referred to as “Fair Value Measurement Accounting Standard”)
and others. In accordance with the transitional treatment provided for in paragraph 19 of the Fair Value Measurement AccountingStandard and paragraph 44-2 of “Accounting Standard for Financial Instruments” (ASBJ Statement No.10, July 4, 2019), theGroup applied prospectively a new accounting policy prescribed by the Fair Value Measurement Accounting Standard and others.
This application has no effect on the consolidated financial statements.

- 9 -(Changes in Accounting Estimates)(Change in estimates for asset retirement obligation)
Regarding domestic oil and gas production facilities and gas supply and marketing facilities, the Group has obligations to prevent
mine pollution at abandoned well sites after the completion of the production under Mine Safety Act and restore sites to their
original condition at the time of business termination in accordance with lease contracts.
Among these facilities, certain domestic oil and gas production facilities are operated complementarily and holistically inconnection with the LNG terminal and it had been difficult to formulate reasonable long-term production plan considering thebalance between the production and the inflow of LNG. The Group had planned to operate domestic gas supply and marketing
facilities permanently as highly public infrastructures for energy supply and it had been impossible to determine the timing ofdecommission. For this reason, the Group had not recognized asset retirement obligation since the Group had not been able toestimate it reasonably until the end of the previous fiscal year.
For the three months ended 31 March, 2022, the Group reviewed the production and development plan considering the formulationand publishment of “Long-term Strategy and Medium-term Business Plan (INPEX Vision@2022)” in February 2022. As a result,it has been possible to determine reasonably the timing of decommission of domestic oil and gas production facilities and certain
gas supply and marketing facilities that the Group had not recognized asset retirement obligation since it had been impossible todetermine the timing of decommission, and the asset retirement obligation of ¥12,149 million has been recorded. Due to thischange, operating income, ordinary income and income before income taxes decreased by ¥10,828 million respectively.

- 10 -

(Segment Information)
I. For the three months ended March 31, 2021 (January 1, 2021 through March 31, 2021)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Adjustments Consolidated*1*2

Asia &
Oceania

Eurasia(Europe& NIS)

MiddleEast& Africa

Americas31,49467,57922,555

116,657

5,411

243,697－

243,697

－

4,128

－

－

－

4,128

(4,128)－

Total

31,49471,70722,555

116,657

5,411

247,825(4,128)

243,697

Segment income (loss)

3,179

30,1803,674

70,8792,768

110,682(4,627)106,054

Japan

Total

Net sales
Sales to third parties
Intercompany sales and transfers
between segments

Note: 1. Adjustments of segment income (loss) of ¥(4,627) million are corporate expenses. Corporate expenses are mainly amortization of goodwill and generaladministrative expenses that are not allocated to a reportable segment.
2. Segment income (loss) is reconciled with operating income on the consolidated statement of income.

2. Information on impairment loss from fixed assets, goodwill and other items by reportable segment
None
Ⅱ. For the three months ended March 31, 2022 (January 1, 2022 through March 31, 2022)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Adjustments Consolidated
*1
*2

Japan

Asia &
Oceania

Eurasia(Europe& NIS)

MiddleEast& Africa

Americas54,698123,059

87,102

213,384

7,144

485,391－

485,391

－

4,647

－

－

－

4,647

(4,647)－

Total

54,698

127,707

87,102

213,384

7,144

490,038(4,647)

485,391

Segment income (loss)(10,604)

66,88543,282

128,247

4,582

232,393(4,078)228,315

Total

Net sales
Sales to third parties
Intercompany sales and transfers
between segments

Note: 1. Adjustments of segment income (loss) of ¥(4,078) million are corporate expenses. Corporate expenses are mainly amortization of goodwill and generaladministrative expenses that are not allocated to a reportable segment.
2. Segment income (loss) is reconciled with operating income on the consolidated statement of income.

2. Information on impairment loss from fixed assets, goodwill and other items by reportable segment(Significant change in goodwill)
In “Eurasia (Europe & NIS)” segment, the Group included INPEX Norway Co., Ltd. and INPEX Idemitsu Norge AS in the scopeof consolidation. As a result, goodwill in the segment increased by ¥16,204 million for the three months ended March 31,2022.
The amount of goodwill is provisionally calculated as the allocation of acquisition cost has not been completed as of March 31,
2022.
3. Information on changes in reportable segments and others(Application of Accounting Standard for Revenue Recognition and others)
As stated in the “Changes in Accounting Policy”, effective from the beginning of the three months ended March 31, 2022, theGroup applied the Revenue Recognition Accounting Standard and others, and changed the method of accounting in connection
with revenue recognition. Accordingly, the method of calculating net sales and income (loss) by reportable segment was alsochanged in the same manner. As a result, net sales for the three months ended March 31, 2022 in “Japan” segment decreased by¥452 million compared with the previous method, and there was no effect on segment income (loss).
(Significant Subsequent Events)
None- 11 -

3. Supplementary Information(1) Production, Orders Received and Sales Performance1) Actual production
The following table shows actual production by segment:
Segment

Category

For the three months ended
March 31, 2021

For the three months ended
March 31, 2022

Crude oil

0.3 MMbbls(3.2 Mbbls per day)

0.3 MMbbls(2.8 Mbbls per day)Natural gas

10.6 Bcf(118.2 MMcf per day)

9.6 Bcf(106.6 MMcf per day)Subtotal

2.3 MMboe(25.4 Mboe per day)

2.1 MMboe(22.9 Mboe per day)

Iodine142.5 tons

142.4 tons

Electric power generation

56.1 million kWh

57.5 million kWh

Crude oil

4.7 MMbbls(51.8 Mbbls per day)

4.5 MMbbls(49.8 Mbbls per day)Natural gas

98.1 Bcf(1,090.2 MMcf per day)

106.2 Bcf
(1,179.8 MMcf per day)Japan

Asia & Oceania

23.7 MMboe

25.0 MMboe(262.8 Mboe per day)

(277.5 Mboe per day)Electric power generation

98.2 million kWh

94.3 million kWh

Crude oil

4.6 MMbbls(51.3 Mbbls per day)

6.9 MMbbls(76.8 Mbbls per day)Subtotal

Eurasia(Europe & NIS)

Middle East & Africa

2.3 Bcf

4.9 Bcf(25.8 MMcf per day)

(54.8 MMcf per day)Subtotal

5.0 MMboe(55.9 Mboe per day)

7.8 MMboe(86.7 Mboe per day)Sulfur

23.7 Mtons

28.8 Mtons

Crude oil19.2 MMbbls(213.2 Mbbls per day)22.8 MMbbls(253.7 Mbbls per day)Natural gas

Crude oil
AmericasNatural gas

0.7 MMbbls(7.4 Mbbls per day)

4.5 Bcf

0.7 Bcf(50.4 MMcf per day)

(8.3 MMcf per day)

1.5 MMboe

0.8 MMboe(16.6 Mboe per day)(9.1 Mboe per day)

Crude oil29.4 MMbbls(326.6 Mbbls per day)

35.1 MMbbls(390.4 Mbbls per day)Natural gas

115.6 Bcf
(1,284.6 MMcf per day)

121.4 Bcf
(1,349.4 MMcf per day)Subtotal

Total

0.6 MMbbls(7.2 Mbbls per day)Subtotal
IodineElectric power generation
Sulfur

51.7 MMboe

58.5 MMboe(574.0 Mboe per day)(649.9 Mboe per day)

142.5 tons

142.4 tons

154.2 million kWh

151.8 million kWh

23.7 Mtons

28.8 Mtons

Note: 1. The volume of LPG produced overseas is included in “Crude oil”.
2. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
3. 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 three months ended March 31 regardless of the fiscal year-ends of its subsidiaries or affiliates.

- 12 -

4. The production volume of crude oil and natural gas under the production sharing contracts entered into by the Group corresponds to the net economic
take of the Group.
Figures calculated by multiplying the gross production volume by the Company’s interest share are 31.6 MMbbls (350.9 Mbbls per day) of crude oil,
120.2 Bcf (1,335.9 MMcf per day) of natural gas, and in total 54.6 MMboe (607.1 Mboe per day) for the three months ended March 31, 2021, and 36.0
MMbbls (400.5 Mbbls per day) of crude oil, 124.2 Bcf (1,380.5 MMcf per day) of natural gas, and in total 59.9 MMboe (665.3 Mboe per day) for thethree months ended March 31, 2022.
5. “Boe” means barrels of oil equivalent.
6. “Iodine” is refined by other company on consignment.
7. Figures are rounded to the first decimal place.

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

Category

For the three months ended
March 31, 2021

For the three months ended
March 31, 2022

Net sales

Net sales

Crude oil
Natural gas
Japan

Asia & Oceania

Eurasia(Europe & NIS)

(excluding LPG)

1,194

1,470

25,712

47,684

LPG

7

5

Other

4,580

5,537

Subtotal

31,49454,698Crude oil

28,112

55,694Natural gas(excluding LPG)

38,49866,280

LPG

968

1,084

Subtotal

67,579123,059

Crude oil

24,55678,038(1,933)8,629

Natural gas(excluding LPG)
Other

(68)

434

Subtotal

22,555

87,102

Middle East & Africa

Crude oil

116,657

213,384

Crude oil

3,969

6,900

AmericasNatural gas(excluding LPG)

1,441

243

Subtotal

5,411

7,144

Crude oil

174,490355,489

Natural gas(excluding LPG)

63,719122,838

LPG

975

1,090

Total

Other

4,511

5,972

Total

243,697

485,391- 13 -