ファConsolidated Financial Results for the Nine Months ended December 31, 2010 [Japanese GAAP]
February 4, 2011
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 : Tokyo Stock Exchange

Code number: 1605

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

Representative: Toshiaki Kitamura, President

Contact person: Kazuhiko Itano, General Manager, Corporate Communications Unit
TEL+81-3-5572-0233

Scheduled date of filing Quarterly Financial Report: February 9, 2011

Scheduled date of payment of cash dividends: ―Preparation of supplementary explanatory materials: Yes

Meeting of quarterly financial results presentation: None(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for the Nine Months ended December 31, 2010 (April 1, 2010-December 31, 2010)(1) Consolidated operating results(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales

Operating income

Ordinary income

Net income

For the nine months ended
December 31, 2010

Millions of yen

681,89910.7

378,795

12.8

365,495

13.9

90,108

11.7

December 31, 2009

615,979(33.2)

335,755(44.1)

320,774(42.9)

80,690(42.7)%

Millions of yen

Net income pershare—basic
For the nine months ended
December 31, 2010
December 31, 2009%

Millions of yen%

Millions of yen%

Net income pershare—diluted
Yen

Yen

―
―

30,014.30
34,285.38(2) Consolidated financial position
Total assets
Millions of yen

As of December 31, 2010
As of March 31, 2010

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

Net assets

2,587,891
2,013,778

2,050,949
1,490,603

75.6
68.9

535,663.08
589,548.88(Reference): Net assets excluding minority interests: ¥ 1,955,649 million as of December 31, 2010
¥ 1,387,499 million as of March 31, 2010

2. Dividends
Cash dividends per share
At 1st quarter end At 2nd quarter end At 3rd quarter end At fiscal year end
For the year ended
March 31, 2010
For the year ending
March 31, 2011

Yen

Yen

Total

Yen

Yen

Yen

3,000.00

5,500.00―

2,500.00――

3,000.00―

For the year ending
3,000.00
6,000.00
March 31, 2011 (forecast)(Reference): Changes in projected dividends for the year ending March 31, 2011 from the previous forecast: None

3. Forecasted Consolidated Financial Results for the year ending March 31, 2011 (April 1, 2010-March 31, 2011)(Figures in % represent the changes from the previous year)

Net sales

Operating income

Ordinary income

Net income

Millions of yen% Millions of yen% Millions of yen% Millions of yen%
For the year ending
888,000 5.7
488,000
5.7
479,000 8.4
120,000 11.9
March 31, 2011
(Reference): Changes in forecasted consolidated financial results for the year ending March 31, 2011 from the previous forecast: Yes

Net income per
share
Yen

38,072.35

ファ

4. Others (Please refer to “2. Others” on page 4 for details.): None(1) Significant changes in scope of consolidation(Note): Changes in the specified subsidiaries during the period due to change in scope of consolidation(2) Adoption of simplified accounting methods or special accounting treatments: None(Note): Adoption of simplified accounting methods or special accounting treatments for presenting
quarterly consolidated financial statements(3) Changes in accounting principles, procedures, or disclosures
1. Changes associated with revision in accounting standards
2. Other changes: Yes: None(Note): Changes in accounting principles, procedures, or disclosures for presenting quarterly
consolidated financial statements stated as “Changes to the basis of presenting quarterly
consolidated financial statements.”(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:

3,655,810 shares as of December 31, 2010
2,358,410 shares as of March 31, 2010
4,916 shares as of December 31, 2010
4,916 shares as of March 31, 2010
3,002,194 shares for the nine months ended December 31, 2010
2,353,494 shares for the nine months ended December 31, 2009

(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.

* Indication of quarterly review procedure implementation status
This quarterly earnings report is exempt from quarterly review procedure under the Financial Instruments and Exchange Act. The
review procedure for quarterly consolidated financial statements under the Financial Instruments and Exchange Act has not been
completed at the time of disclosure of this report.
*Explanation regarding the appropriate use of estimated consolidated financial results
The aforementioned forecasts 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 pricelevels, production and sales plans, project development schedules, government regulations and financial and tax schemes. Please refer
to “1.(3) Qualitative Information on Forecasted Consolidated Financial Results” on page 3.
The Company issued 1,216,000 shares of common stock by way of offering new shares on August 2, 2010 as its due date. In addition,
81,400 shares of common stock were issued to Nomura Securities Co., Ltd. as an allottee on August 31, 2010, by way of the thirdparty allotment in connection with a secondary offering of the Company’s shares (by way of over-allotment).
As a result, net income per share for the year ending March 31, 2011, on the aforementioned forecasts, is calculated by using
3,151,894 shares, average shares which include the increased shares by the public offering of new shares and over-allotment.

ファIndex of the Attachments

1.

Qualitative Information / Financial Statements……………………………………………………………………………..

2(1) Qualitative Information on Consolidated Financial Results…………………………………………………………......

2(2) Qualitative Information on Consolidated Financial Position………………………………………………………….....

3(3) Qualitative Information on Forecasted Consolidated Financial Results………………………………………………....

3

Others ……………………………………………………………………………………………………………………...

4(1) Significant changes in scope of consolidation…………………………………………………………………………...

4(2) Adoption of simplified accounting methods or special accounting treatments………………………………………….

4(3) Changes in accounting principles, procedures, or disclosures…………………………………………………………...

4

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

5(1) Consolidated Balance Sheets………………………………………………………………………………………….....

5(2) Consolidated Statements of Income……………………………………………………………………………………...

7(3) Consolidated Statements of Cash Flows………………………………………………………………………………....

8(4) Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern…………………………………………………………………..

10(5) Segment Information…………………………………………………………………………………………………......

11(6) Note on significant changes in shareholders’ equity……………………………………………………………………..

12

Supplementary information……………………………………………………………………………………………….....

13(1) Production, orders received and sales performance……………………………………………………………………...

13

2.

4.

- 1 -

ファ

1.Qualitative Information / Financial Statements(1) Qualitative Information on Consolidated Financial Results
During the nine months ended December 31, 2010, consolidated net sales were ¥681,899 million (increased by ¥65,920 million, or
10.7%, from the corresponding period of the previous fiscal year) due mainly to an increase in sales price of crude oil and natural gas.
Net sales of crude oil increased by ¥41,227 million, or 11.5%, to ¥400,963 million, and net sales of natural gas increased by ¥24,059
million, or 10.2%, to ¥260,794 million. Sales volume of crude oil increased by 348 Mbbls, or 0.6%, to 58,085 Mbbls. Sales volume ofnatural gas decreased by 12,262 MMcf, or 4.0%, to 297,809 MMcf. Sales volume of natural gas produced overseas decreased by
12,558 MMcf, or 4.7%, to 254,637 MMcf, and sales volume of domestic natural gas increased by 8 MM㎥, or 0.7%, to 1,157 MM㎥(43,172 MMcf). The average sales price of crude oil produced overseas increased by US$12.70 per bbl, or 19.2 %, to US$78.78 per
bbl, and the average sales price of natural gas produced overseas increased by US$1.40 per Mcf, or 19.3%, to US$8.65 per Mcf. In
addition, the average sales price of domestic natural gas increased by ¥6.46, or 17.6%, to ¥43.15 per ㎥. The average exchange rate ofJapanese yen against U.S. dollar on consolidated net sales appreciated by ¥6.38, or 6.8%, to ¥86.96 per U.S. dollar from thecorresponding period of the previous fiscal year.
The increase of ¥65.9 billion in net sales was mainly derived from the following factors: a decrease in sales volume of ¥3.5 billion, an
increase in unit sales price of ¥113.5 billion, the appreciation of Japanese yen against U.S. dollar of ¥44.7 billion, and an increase in
net sales excluding crude oil and natural gas of ¥0.6 billion.
Cost of sales for the nine months ended December 31, 2010 increased by ¥26,110 million, or 11.9%, to ¥244,882 million due mainly
to an increase in net purchase of natural gas in Japan, and an increase in depreciation owing to the commencement of production in
the Van Gogh field. Exploration expenses decreased by ¥1,614 million, or 14.3%, to ¥9,707 million due mainly to a decrease in
exploration activities in Japan despite an increase in Americas. Selling, general and administrative expenses decreased by ¥1,615
million, or 3.2%, to ¥48,514 million. As a result, operating income increased by ¥43,039 million, or 12.8%, to ¥378,795 million.
Other income increased by ¥7,020 million, or 66.3 %, to ¥17,616 million due to an increase in equity in earnings of affiliates and gain
on change in equity. Other expenses increased by ¥5,339 million, or 20.9%, to ¥30,915 million due mainly to an increase in
exploration activities, the record of an allowance for full amounts of investments in a conservative manner, regarding the withdrawal
from Azadegan oil field in Iran, and a record of loss on adjustment for changes of accounting standard for asset retirement, despite adecrease in foreign exchange loss.
As a result, ordinary income and income before income taxes and minority interests increased by ¥44,721 million, or 13.9%, to¥365,495 million.
Total amount of current income taxes increased by ¥23,832 million, or 10.2%, to ¥257,766 million, and deferred income taxes were
¥10,394 million, income before minority interests were ¥97,334 million, and minority interests were ¥7,225 million. As a result of theabove effects, net income for the nine months ended December 31, 2010 increased by ¥9,418 million, or 11.7%, to ¥90,108 million
from the corresponding period of the previous fiscal year.

Financial results by segment are as follows: Meanwhile, effective from the first quarter ended June 30, 2010, the Company adopted“Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Statement No.17, issued on
March 27, 2009) and the “Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and RelatedInformation” (ASBJ Guidance No.20, issued on March 21, 2008), the reportable segments and the calculation method of segment
income effective from the first quarter ended June 30, 2010 are compared with the geographical segment information of thecorresponding period of the previous fiscal year since the same calculation method is used.
1)

Japan
Net sales increased by ¥8,215 million, or 12.8%, to ¥72,531 million due to an increase in sales volume and sales price of naturalgas. Operating income decreased by ¥5,702 million, or 27.1%, to ¥15,356 million due to an increase in net purchase of naturalgas.
2) Asia - Oceania
Net sales increased by ¥44,653 million, or 16.9%, to ¥309,029 million due to an increase in sales volume of crude oil and sales
price of crude oil and natural gas despite an appreciation of Japanese yen, and operating income increased by ¥40,579 million, or
29.0%, to ¥180,503 million.
3) Eurasia (Europe - NIS)
Net sales decreased by ¥2,877 million, or 5.8%, to ¥46,855 million due to a decrease in sales volume of crude oil in the ACG oil
fields and appreciation of Japanese yen despite an increase in sales price of crude oil, and operating income decreased by ¥3,078
million, or 11.4%, to ¥23,925 million.
4) Middle East - Africa
Net sales increased by ¥17,612 million, or 7.8%, to ¥242,665 million due to an increase in sales price of crude oil, and operating
income increased by ¥13,628 million, or 8.9%, to ¥166,846 million.
5) Americas
Net sales decreased by ¥1,683 million, or 13.5%, to ¥10,818 million, and operating loss was ¥1,449 million due to an increase in
exploration expenses.

- 2 -

ファ

(2) Qualitative Information on Consolidated Financial Position
Total assets as of December 31, 2010 increased by ¥574,113 million to ¥2,587,891 million from ¥2,013,778 million as of March 31,
2010. This is due mainly to an increase in investment securities by ¥483,284 million, an increase in intangible assets by ¥12,839
million owing to the acquisition of an additional interest in the ACG oil fields, and increase in recoverable accounts under production
sharing by ¥36,080 million owing to investments at the Kashagan oil field etc.
Meanwhile, total liabilities increased by ¥13,766 million to ¥536,941 million from ¥523,175 million. Current liabilities decreased by¥4,637 million to ¥223,267 million and long-term liabilities increased by ¥18,404 million to ¥313,674 million.
Net assets increased by ¥560,346 million to ¥2,050,949 million due to an increase in common stock and capital surplus by ¥260,809
million, respectively, owing to the issuance of new shares and secondary offering of shares. Minority interests in net assets decreasedby ¥7,802 million to ¥95,300 million.
Cash and cash equivalents as of December 31, 2010 totaled ¥200,733 million reflecting a net decrease of ¥15,661 million from
¥216,395 million at the end of the previous fiscal year.
Cash flows from operating activities, investing activities and financial activities are as follows:
1) Cash flows from operating activities
Net cash provided by operating activities was ¥188,443 million (increased by ¥10,254 million from the corresponding period of
the previous fiscal year). This is due mainly to an increase in income before income taxes and minority interests owing to anincrease in sales price of crude oil.
2) Cash flows from investing activities
Net cash used in investing activities was ¥726,930 million (increased by ¥555,545 million from the corresponding period of theprevious fiscal year). This is due mainly to an increase in payments for purchases of investment securities.
3) Cash flows from financial activities
Net cash provided by financial activities was ¥536,612 million (increased by ¥498,101 million from the corresponding period of
the previous fiscal year). This is due to an increase in proceeds from issuance of common stock.

(3) Qualitative Information on Forecasts for Consolidated Financial Results
Forecasts for consolidated financial results for the year ending March 31, 2011 have been revised from the previous forecast presented
on November 4, 2010, taking into consideration the consolidated financial results for the nine months ended December 31, 2010 aswell as revised assumptions of crude oil price for the three months ending March 31, 2011.
Forecasts for consolidated financial results for the year ending March 31, 2011
Operating
Net sales
incomePrevious Forecasts: Ａ
835,000
438,000(Millions of yen)
Ordinary
incomeNet income

420,000

102,000

Revised Forecasts: Ｂ

888,000

488,000

479,000

120,000

Increase (Decrease): Ｂ－Ａ

53,00050,00059,00018,000

6.3

11.4

14.0

17.6

Percentage change (%)

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

Revised Forecastsst

st

1 Half (April 1, 2010-September 30, 2010) :1 Half (April 1, 2010-September 30, 2010) :US$ 78.2/bbl (Actual)
US$ 78.2/bbl (Actual)
2nd Half (October 1, 2010- March 31, 2011) :2nd Half *1 (October 1, 2010- March 31,
Crude Oil Price(Brent)US$ 77.5/bbl
2011) : US$ 86.2/bbl
Full Year (April 1, 2010- March 31, 2011) :Full Year (April 1, 2010- March 31, 2011) :US$77.9/bbl (Average)
US$82.2/bbl (Average)
1st Half (April 1, 2010-September 30, 2010) :1st Half (April 1, 2010-September 30, 2010) :¥89.0/US$1 (Actual)¥89.0/US$1 (Actual)
2nd Half (October 1, 2010- March 31, 2011) :2nd Half *2 (October 1, 2010- March 31,
Exchange rate
¥80.0/US$1
2011) : ¥81.3/US$1
Full Year (April 1, 2010- March 31, 2011) :Full Year (April 1, 2010- March 31, 2011) :¥84.5/US$1 (Average)¥85.1/US$1 (Average)*1
3rd quarter (Actual) : US$ 87.3/bbl, 4th quarter (Forecast) : US$ 85.0/bbl*2
3rd quarter (Actual) : ¥ 82.6/US$1, 4th quarter (Forecast) : ¥ 80.0/US$1

- 3 -

ファ

Note: Crude oil prices at which the Company sells products depend on the type of crude oil, and there are also price differences
between the crude oil price and Brent price. Price differences are caused by its quality and its pricing range which is affected by themarket conditions. Most of the crude oil prices are lower than Brent price.
2.Others(1) Significant changes in scope of consolidation:
None(2) Adoption of simplified accounting methods or special accounting treatments:
None(3) Changes in accounting principles, procedures, presentations, or disclosures:
1) Adoption of “Accounting Standard for Asset Retirement Obligations”
Effective from the first quarter ended June 30, 2010, the Company adopted the “Accounting Standard for Asset Retirement
Obligations” (ASBJ Statement No. 18 issued on March 31, 2008) and the “Guidance on Accounting Standard for Asset
Retirement Obligations” (ASBJ Guidance No. 21 issued on March 31, 2008). Pursuant to these standards, the Company has
reversed liabilities for site restoration and decommissioning costs which had been recorded as a provision for future costs
expected to incur in accordance with the schedule for site restoration and decommissioning.
As a result, operating income decreased by ¥15 million and ordinary income and income before income taxes and minority
interests decreased by ¥1,185, respectively. The change in the amount of asset retirement obligations due to the adoption of theseaccounting standards is ¥2,305 million.
2) Adoption of “Accounting Standard for Equity Method of Accounting for Investment” and “Practical Solution on Unificationof Accounting Policies Applied to Associates Accounted for Using the Equity Method”
Effective from the first quarter ended June 30, 2010, the Company adopted the “Accounting Standard for Equity Method of
Accounting for Investments” (ASBJ Statement No. 16 issued on March 10, 2008) and the “Practical Solution on Unification of
Accounting Policies Applied to Associates Accounted for Using the Equity Method” (ASBJ PITF No. 24 issued on March 10,2008).
There is no impact on the consolidated financial statements as a result of this change.

- 4 -更新日時:2011/01/27 14:52:00

ァイル名:③H23.3_第3四半期BS【済】.DOC

印刷日時:11/02/01 11:37

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

Condensed balance sheet as ofMarch 31, 2010

As of December 31, 2010

(Assets)
Current assets
Cash and deposits

112,926

119,809

Accounts receivable-trade80,41888,364Marketable securities

224,885

213,040

Inventories

13,54012,322

Other

72,641

59,340Allowance for doubtful accounts

(638)

(22)

503,774

492,854366,943

358,094

Goodwill

103,052

108,122

Other

148,991

131,082

Total intangible assets

252,044239,205

Investment securities

887,262

403,978

Recoverable accounts under production
sharing

550,726

514,645

Other

158,823

115,781

(597)

(640)

(114,242)(94,891)(16,843)(15,248)

Total investments and other assets

1,465,129

923,624

Total fixed assets

2,084,117

1,520,923

2,587,891

2,013,778

Total current assets
Fixed assets
Tangible fixed assets
Intangible assets

Investments and other assets

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

Total assets― 5 ―更新日時:2011/01/27 14:52:00

ァイル名:③H23.3_第3四半期BS【済】.DOC

印刷日時:11/02/01 11:37(Millions of yen)Accounts

Condensed balance sheet as ofMarch 31, 2010

As of December 31, 2010

(Liabilities)
Current liabilities
Accounts payable-trade18,161

16,601

Short-term loans

4,823

4,872

Income taxes payable

90,06386,534

Provision for exploration projects

10,272

15,324

Accrued bonuses to officers

114

132

Asset retirement obligations

2,249

―

Other

97,583

104,440

Total current liabilities

223,267

227,905

253,988

235,510Long-term liabilities
Long-term debt
Accrued retirement benefits to employees

7,013

7,585

Liabilities for site restoration anddecommissioning costs
Liabilities for losses on development
activities―

14,257―

1,964

Accrued special repair and maintenance

455

442

Asset retirement obligations

9,443

―

Other

42,77335,508

Total long-term liabilities

313,674

295,269

Total liabilities

536,941

523,175

Common stock

290,809

30,000Capital surplus

679,287

418,477

Retained earnings

1,008,840

936,744

Treasury stock(5,248)(5,248)

1,973,689

1,379,974(554)

12,351

Translation adjustments(17,486)(4,826)

Total valuation, translation adjustments
and others(18,040)

7,525

Minority interests

95,300103,103

Total net assets

2,050,949

1,490,603

Total liabilities and net assets

2,587,891

2,013,778(Net assets)
Shareholders’ equity

Total shareholders’ equity
Valuation, translation adjustments and others
Unrealized holding gain (loss) on
securities― 6 ―ァイル名:④H23.3第3四半期_PL【済】.DOC

更新日時(2) Consolidated Statements of Income(Millions of yen)
For the nine months ended
December 31, 2009

Accounts

For the nine months ended
December 31, 2010

Net sales

615,979

681,899

Cost of sales

218,772

244,882

Gross profit

397,207437,016

Exploration expenses

11,322

9,707

Selling, general and administrative expenses

50,12948,514

Operating income

335,755

378,795

Interest income

3,303

2,987

Dividend income

3,235

3,143

Equity in earnings of affiliates

―

3,576

Gain on change in equity

―

3,644

Other

4,056

4,264

Total other income

10,595

17,616

Interest expense

864

816

Equity in losses of affiliates

941―

Provision for allowance for recoverable accounts under
production sharing

3,170

12,667

Provision for exploration projects

4,420

3,411

―

1,555

Foreign exchange loss

10,122

1,920

Other

6,056

10,545

Total other expenses

25,57630,915

Ordinary income

320,774

365,495

Income before income taxes and minority interests

320,774

365.495

Income taxes-current

233,933

257,766

Income taxes-deferred(1,407)

10,394

Total income taxes

232,525

268,160―

97,334

Minority interests

7,558

7,225

Net income

80,69090,108Other income

Other expenses

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

Income before minority interests― 7 ―ファイル名:⑤H23.3_第3四半期CF【済】.DOC

更(3) Consolidated Statements of Cash Flows(Millions of yen)Accounts

For the nine months ended
December 31, 2009

For the nine months ended
Dectember 31, 2010

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

320,774

365,495

Depreciation and amortization

29,94742,362

―

1,555

5,068

5,070

5,568

19,737

Provision for exploration projects

3,147(4,846)

Provision for accrued retirement benefits to employees

(484)

(559)

Provision for site restoration and decommissioning costs

(171)

―

Other provisions

3,774

2,191

Interest and dividend income(6,539)(6,130)

864

816

1,628

(4,110)941(3,576)35,572

34,607(8,863)(12,165)(23,375)

3,699

Inventories

5,033(1,613)

Accounts payable-trade

1,157

1,977

Accounts receivable-other(23,003)(7,834)

Accounts payable-other

27,61114,145

Other

8,653

(13,581)

387,306

437,239

Interest and dividends received

7,963

8,112

Interest paid

(1,362)(799)(215,717)(256,109)

178,188

188,443

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

Interest expense
Foreign exchange loss (gain)
Equity in (earnings) losses of affiliates
Recovery of recoverable accounts under production
sharing (capital expenditures)
Recoverable accounts under production sharing(operating expenditures)
Accounts receivable-trade

Subtotal

Income taxes paid
Net cash provided by operating activities― 8 ―ファイル名:⑤H23.3_第3四半期CF【済】.DOC

更(Millions of yen)Accounts

For the nine months ended
December 31, 2009

For the nine months ended
December 31, 2010

Cash flows from investing activities
Increase in time deposits(6,321)(460)

Decrease in time deposits

2,774

3,881

―

(53,500)(68,515)(63,456)

Proceeds from sales of tangible fixed assets

80

151

Payments for purchases of intangible assets

(735)

(752)

―

(8,180)

Proceeds from sales of marketable securities

77,32074,000

Payments for purchases of investment securities(86,765)(599,878)―

10,158(75,694)(60,399)36

466(6,232)(1,124)

Collection of long-term loans receivable

23

562

Payments for purchase of mining rights―(27,820)(7,355)(578)(171,385)(726,930)―(521,619)

Increase in short-term loans

26,226―

Proceeds from long-term debt

29,741

44,298

Repayments of long-term debt

(3,667)(3,235)

Proceeds from minority interests for additional shares

1,720

4,436

(15,308)(18,030)

Dividends paid to minority shareholders(81)(12,397)

Other

(118)

(78)

Net cash provided by financing activities

38,511

536,612

Effect of exchange rate changes on cash and cash equivalents(5,707)(13,791)

Net increase (decrease) in cash and cash equivalents

39,607(15,666)

Cash and cash equivalents at beginning of the period

162,844

216,395―4

202,452

200,733

Increase in long-term deposits
Payments for purchases of tangible fixed assets

Payments for purchases of marketable securities

Proceeds from sales of investment securities
Investment in recoverable accounts under production
sharing (capital expenditures)
Decrease in short-term loans receivable
Long-term loans madeOther
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issuance of common stock

Cash dividends paid

Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of the period― 9 ―ファイル名:⑥H23.3第3四半期セグメント-海外売上高-継続企業【済】.doc 更新日時:2011/01/28 17:54:00

印刷日時:11/02/01 11:40(4) Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern
For the nine months ended December 31, 2010 (April 1, 2010 through December 31, 2010):
None

―10―

ファイル名:⑥H23.3第3四半期セグメント-海外売上高-継続企業【済】.doc 更新日時:2011/01/28 17:54:00

印刷日時:11/02/01 11:40(5) Segment information【Business segment information】
For the nine months ended December 31, 2009 (April 1, 2009 through December 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 and operating income.

【Geographical segment information】
For the nine months ended December 31, 2009 (April 1, 2009 through December 31, 2009)(Millions of yen)Japan

Asia Oceania

Eurasia(EuropeNIS)

64,315

264,376

49,733225,052

12,502

―

―

―

―

Total

64,315

264,376

49,733Operating income

21,059139,923

27,004

Middle East Africa

AmericasEliminations
and other

Consolidated

615,979―

615,979

―

―

―

―

225,052

12,502615,979―

615,979

153,218798

342,003(6,248)335,755

Total

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

Notes:

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, Surinam, Brazil【Overseas sales】
For the nine months ended December 31, 2009 (April 1, 2009 through December 31, 2009)
Asia - Oceania
I.

Overseas sales (Millions of yen)

204,393

Other

Total
38,715

II. Consolidated sales (Millions of yen)

615,979

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

243,108

33.2

6.3

39.5

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, India, Australia, China, Philippines(2) Other･･･････････････USA, Italy
3. Overseas sales represent sales to countries and regions outside of Japan, which is determined based upon the finaldestination.

―11―

ファイル名:⑥H23.3第3四半期セグメント-海外売上高-継続企業【済】.doc 更新日時:2011/01/28 17:54:00

印刷日時:11/02/01 11:40【Segment information】
1.

Overview of reportable segments

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

2.

Information on sales and income (loss) by reportable segment
For the nine months ended December 31, 2010 (April 1, 2010 through December 31, 2010)(Millions of yen)Japan

Asia Oceania

72,531

309,029

―

―

Total

72,531

309,029

Segment income (loss)

15,356

180,503

Reportable segments
Eurasia
Middle East
(EuropeAmericas-Africa
NIS)

Adjustment Consolidated
Total

*1

*2

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

242,665

10,818681,899―

681,899

―

―

―

―

―

46,855

242,665

10,818681,899―

681,899

23,925

166,846(1,449)385,182(6,387)

378,795

46,855―

Note: 1. Adjustments of segment income of ¥(6,387) million includes elimination of intersegment transactions of ¥174 million and corporate expenses of ¥(6,561) million. Corporate expenses are mainly amortization of goodwill not attributable to a reportablesegment and general administrative expenses.
2. Segment income was reconciled with quarterly consolidated operating income.
3.

Information on impairment loss from fixed assets, goodwill, and others by reportable segment:
None(Additional Information)
Effective from the first quarter ended June 30, 2010, the Company adopted the “Accounting Standard for Disclosures about Segments ofan Enterprise and Related Information” (ASBJ Statement No.17, issued on March 27, 2009) and the “Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Guidance No.20, issued on March 21, 2008).
(6) Note on significant changes in shareholders’ equity
For the nine months ended December 31, 2010 (April 1, 2010 through December 31, 2010):
The Company issued new shares by way of offering on August 2, 2010 as its due date, and by way of third-party allotment on August 31,
2010 as its due date.
As a result of this, capital stock increased by ¥260,809 million to ¥290,809 million and capital surplus increased by ¥260,809 million to¥679,287 million as of December 31, 2010, respectively.

―12―

4ファイル名:

4. Supplementary information(1) Production, orders received and sales performance1) Actual production
The following table shows actual production by business segment for the nine months ended December 31, 2009:
For the nine months ended
Business segment
Category
December 31, 200960 MMbbls
Crude oil
(217 Mbbls per day)
306 Bcf
Natural gas(1,114 MMcf per day)
111 MMboe
Subtotal
Crude oil and(403 Mboe per day)natural gas
Petroleum
180 Mkl
products(1,133 Mbbls)
Iodine322 tons
Electric power
88 millions kWhgeneration
Notes:

1. The volume of LPG produced overseas is included in ‘Crude oil.’ On the other hand, the volume of LPG produced in thedomestic refinery is included in ‘Petroleum Products.’
2. A portion of crude oil production volume is consumed as material for petroleum products.
3. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
4. The production by the Company’s affiliates accounted for by the equity method is included in the figures above. Also the
production volume is a result for the nine months ended December 31 regardless of a closing date of fiscal periods of its
subsidiaries or affiliates.
5. The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX Groupcorresponds to the net economic take of the group.
Figures calculated by multiplying the gross production volume by the Company’s interest share are 92 MMbbls (334
Mbbls per day) of crude oil, 409 Bcf (1,488MMcf per day) of natural gas, and in total 160 MMboe (582 Mboe per day).
For calculating the gas production based on interest share, 100% of the gas production volume measured at wellhead(separator gas) had been used until the year ended March 31, 2009. However, from the year ended March 31, 2010, theCompany applies marketable gas volume basically adjusted for delivery specifications, excluding own fuel consumption,
re-injection, losses as flare, diffusion, process loss and inert gas generated at plant etc.
6. Boe means barrels of oil equivalent.
7. The volume of petroleum products is converted to bbl in parenthesis. Applied coefficient is 6.29 bbls per kl.
8. Iodine is refined by other company on consignment.
9. Figures are rounded to the nearest whole number.

― 13 ―

4ファイル名:

The following table shows actual production by segment for the nine months ended December 31, 2010
For the nine months ended
Segment
Category
December 31, 2010
1.0 MMbbls
Crude oil
(3.5 Mbbls per day)
30.8 Bcf
Natural gas(111.9 MMcf per day)
6.1 MMboe
Subtotal(22.2
Mboe
per day)Japan
177.8 MklPetroleum products(1,118.1 Mbbls)
324.0 tons
IodineElectric power
128.0 millions kWhgeneration
19.5 MMbbls
Crude oil
(71.0 Mbbls per day)
246.8 Bcf
Asia - Oceania
Natural gas(897.5 MMcf per day)60.7 MMboe
Subtotal(220.6 Mboe per day)
7.7 MMbbls
Eurasia (Europe - NIS)
Crude oil(28.2 Mbbls per day)
36.3 MMbbls
Middle East - Africa
Crude oil(132.2 Mbbls per day)
2.1 MMbbls
Crude oil(7.5 Mbbls per day)23.0 Bcf
AmericasNatural gas(83.7 MMcf per day)
5.9 MMbbls
Subtotal(21.5 Mboe per day)66.7 MMbbls
Crude oil(242.4 Mbbls per day)
300.6 Bcf
Natural gas(1,093.1 MMcf per day)
116.8 MMboe
Subtotal(424.6 Mboe per day)
Total
177.8 MklPetroleum products(1,118.1 Mbbls)
324.0 tons
IodineElectric power
128.0 millions kWhgeneration
Notes:

1. The volume of LPG produced overseas is included in ‘Crude oil.’ On the other hand, the volume of LPG produced in thedomestic refinery is included in ‘Petroleum Products.’
2. A portion of crude oil production volume is consumed as material for petroleum products.
3. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
4. The production by the Company’s affiliates accounted for by the equity method is included in the figures above. Also the
production volume is a result for the nine months ended December 31 regardless of a closing date of fiscal periods of its
subsidiaries or affiliates.
5. The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX Groupcorresponds to the net economic take of the group.
Figures calculated by multiplying the gross production volume by the Company’s interest share are 95.4 MMbbls (347.0
Mbbls per day) of crude oil, 406.3 Bcf (1,477.5 MMcf per day) of natural gas, and in total 163.1 MMboe (593.2 Mboe perday).
6. Boe means barrels of oil equivalent.
7. The volume of petroleum products is converted to bbl in parenthesis. Applied coefficient is 6.29 bbls per kl.
8. Iodine is refined by other company on consignment.
9. Figures are rounded to the nearest whole number.

― 14 ―

4ファイル名:

2) Orders received
Disclosure on this information is omitted because the amount of orders received accounts for a minor portion of total sales.
3) Actual salesa) The Company takes back the full amount of crude oil produced overseas allocated to us under production sharing
contracts and produced under concession agreements, and sell it to domestic and foreign customers. The Company
sells most of 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, theCompany sells natural gas produced in Japan to customers using our pipeline.
b) The following table shows sales by business segment for the nine months ended December 31, 2009:

Business segment

Category
Crude Oil(Millions of yen)
For the nine months ended
December 31, 2009
57,738 Mbbls

359,736

310,071 MMcf
Crude oil andnatural gas

Natural Gas

236,735
LPG: 2,655 Mbbls

Other

17,518Subtotal

613,989

Other

1,989
Total

Notes:

615,979

1. The above amounts do not include the related consumption tax.
2. The Company’s subsidiaries of which closing date for fiscal year is December 31 are principally consolidated their operating
results for the nine months ended September 30, 2009 except those subsidiaries prepared their financial statements forconsolidation purpose as of the consolidation closing date. However, the significant effects of the difference in fiscal periods
were properly adjusted in consolidation.
3. Sales volumes are rounded to the nearest whole number.

― 15 ―

4ファイル名:c) The following table shows sales by segment for the nine months ended December 31, 2010:

Segment

CategoryJapan

Crude OilNatural Gas(excluding LPG)
LPG

(Millions of yen)
For the nine months ended
December 31, 2010
Sales volume
Net sales
74 Mbbls

556

43,172 MMcf

49,918174 Mbbls

1,915

Other

20,141

Subtotal

Asia - Oceania

72,531

Crude OilNatural Gas(excluding LPG)
LPG

14,804 Mbbls

104,474

231,571 MMcf

187,288

2,984 Mbbls

17,267

Subtotal
Crude Oil

6,627 Mbbls

46,855

Middle East - Africa

Crude Oil

35,559 Mbbls

242,665

1,022 Mbbls

6,411

Americas

Crude OilNatural Gas(excluding LPG)
Subtotal

23,066 MMcf

4,406

58,085 Mbbls

400,963

297,809 MMcf

241,6123,159 Mbbls

19,182

Total

Notes:

309,029

Eurasia (Europe - NIS)

10,818Crude OilNatural Gas(excluding LPG)
LPG
Other

20,141

Total

681,899

1. The above amounts do not include the related consumption tax.
2. The Company’s subsidiaries of which closing date for fiscal year is December 31 are principally consolidated their operating
results for the nine months ended September 30, 2010 except those subsidiaries prepared their financial statements forconsolidation purpose as of the consolidation closing date. However, the significant effects of the difference in fiscal periods
were properly adjusted in consolidation.
3. Sales volumes are rounded to the nearest whole number.
4. Sales for a major customer and sales as a percentage of total net sales are as follows. Sales amount of PERTAMINA
consists mostly of natural gas, and over half of them are sold to Japanese customers in the form of LNG.

Customer

For the nine months ended

For the nine months ended

December 31, 2009

December 31, 2010

Amounts(Millions of yen）

PERTAMINA

178,064― 16 ―

Ratio

Amounts

Ratio

(％)

（Millions of yen）

(％)

28.9

194,02928.5