ファConsolidated Financial Results for the Six Months ended September 30, 2014 [Japanese GAAP]
November 7, 2014
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: 1605URL

Representative: Toshiaki Kitamura, President

Contact person: Kimihisa Kittaka, General Manager, Corporate Communications Unit

http://www.inpex.co.jp

TEL+81-3-5572-0233
Scheduled date of filing Quarterly Financial Report: November 12, 2014

Scheduled date of payment of cash dividends: December 1, 2014

Preparation of supplementary explanatory materials: Yes

Meeting of quarterly financial results presentation: Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for the Six Months ended September 30, 2014 (April 1, 2014-September 30, 2014)(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 six months ended
September 30, 2014

Millions of yen

663,140

1.9

346,7310.7

368,497

5.1

88,747

10.8

September 30, 2013

650,478

12.4

344,2341.8

350,645(3.6)

80,080(28.1)%

Millions of yen%

Millions of yen%

Millions of yen%(Note): Consolidated comprehensive income: for the six months ended September 30, 2014, ¥127,577 million; ((22.1)%)
for the six months ended September 30, 2013, ¥163,753 million; (94.1%)

Net income pershare—basic
For the six months ended
September 30, 2014
September 30, 2013

Net income pershare—diluted
Yen

Yen

―
―

60.77
54.84

(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date. Net income per share is
calculated based on the assumption that the stock split was conducted on April 1, 2013.

(2) Consolidated financial position
Total assets
Millions of yen

As of September 30, 2014
As of March 31, 2014

4,223,741
4,038,139

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

Net assets

3,121,655
2,996,036

68.8
69.1

(Reference): Net assets excluding minority interests: as of September 30, 2014, ¥2,906,075 million
as of March 31, 2014, ¥2,791,108 million

2. Dividends
Cash dividends per share
At 1st quarter end
Yen

For the year ended
March 31, 2014
For the year ending
March 31, 2015――

At 2nd quarter end
Yen

3,600.00

At 3rd quarter end
Yen―

At fiscal year end
Yen

9.00

Total
Yen

―

9.00

For the year ending
9.00
18.00
―
March 31, 2015 (forecast)(Note):1. Changes in projected dividends for the year ending March 31, 2015 from the previous forecast: None
2. The amount of 2nd quarter-end dividend for the fiscal year ended March 31, 2014 is provided before taking into consideration the effect of
the stock split conducted at a ratio of 1:400 of common stock with October 1, 2013 as the effective date.
3. Above information of “Dividends” is regarding common stock. For information regarding Class A stock (which is not listed), please refer to
Exhibit “Dividends of Class A stock.”ファ

3. Forecasted Consolidated Financial Results for the year ending March 31, 2015 (April 1, 2014-March 31, 2015)(Figures in % represent the changes from the previous fiscal period or 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
1,262,000 (5.4)
592,000 (19.3)
656,000 (12.5)
160,000 (12.9)
March 31, 2015
(Note): Changes in forecasted consolidated financial results for the year ending March 31, 2015 from the previous forecast: Yes

Net income per
share
Yen

109.56Notes(1) Significant changes in scope of consolidation: None(Changes in the specified subsidiaries during the period due to change in scope of consolidation)(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 andother regulations
2. Other changes in accounting policies
3. Changes in accounting estimates
4. Restatement of corrections: Yes: None: None: None(Note): Please refer to “2.(3) Changes in accounting policies, accounting estimates and restatement of corrections” on page 4 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:

1,462,323,600 shares as of September 30, 2014
1,462,323,600 shares as of March 31, 2014
1,966,400 shares as of September 30, 2014
1,966,400 shares as of March 31, 2014
1,460,357,200 shares for the six months ended September 30, 2014
1,460,357,200 shares for the six months ended September 30, 2013

(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date. Number of shares issued
is calculated based on the assumption that the stock split was conducted on April 1, 2013. For Class A stock (which is not listed), no stock
split was implemented.

* 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 price levels, production and sales plans, project development schedules, government regulations and financial and tax schemes.
Please refer to “1.(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results” onpage 3.

ファ

Exhibit:
Dividends of Class A stock
Cash dividends per share
At 1st quarter end

At 2nd quarter end
Yen

At 3rd quarter end
Yen

At fiscal year end
Yen

Yen

Total
Yen

For the year ended
3,600.00
3,600.00
7,200.00――
March 31, 2014
For the year ending
3,600.00―
March 31, 2015
For the year ending
March 31, 2015
3,600.00
7,200.00―(forecast)(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date, however, for Class A
stock (which is not listed), no stock split was implemented. The Articles of Incorporation specifies that dividends of Class A stock areequivalent to dividends of a common stock prior to the stock split.

ファIndex of the Attachments
1.

Qualitative Information / Financial Statements ............................................................................................................................ 2(1) Explanation on Consolidated Financial Results ........................................................................................................................ 2(2) Explanation on Consolidated Financial Position....................................................................................................................... 2(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results ............................... 3

2.

Notes Regarding Summary Information (Notes) .......................................................................................................................... 4(1) Significant changes in scope of consolidation .......................................................................................................................... 4(2) Adoption of accounting treatments which are exceptional for quarterly consolidated financial statements ............................. 4(3) Changes in accounting policies, accounting estimates and restatement of corrections ............................................................. 4

3.

Consolidated Financial Statements ............................................................................................................................................... 5(1) Consolidated Balance Sheet ...................................................................................................................................................... 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ................................................... 7
Consolidated Statement of Income ........................................................................................................................................... 7
Consolidated Statement of Comprehensive Income ................................................................................................................. 8(3) Consolidated Statement of Cash Flows ..................................................................................................................................... 9(4) Notes to Consolidated Financial Statements ........................................................................................................................... 11(Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern) ........................................................................................................ 11(Note on significant changes in shareholders’ equity) ............................................................................................................ 11(Segment information)............................................................................................................................................................ 12(Subsequent events) ................................................................................................................................................................ 124.

Supplementary Information ........................................................................................................................................................ 13(1) Production, Orders Received and Sales Performance ............................................................................................................. 131

ファ

1. Qualitative Information / Financial Statements(1) Explanation on Consolidated Financial Results
During the six months ended September 30, 2014, consolidated net sales were ¥663.1 billion (increased by ¥12.6 billion, or 1.9%,
from the corresponding period of the previous fiscal year) due to the depreciation of Japanese yen against U.S. dollar. Net sales ofcrude oil increased by ¥10.8 billion, or 2.5%, to ¥437.6 billion, and net sales of natural gas increased by ¥1.9 billion, or 0.9%, to¥216.7 billion. Sales volume of crude oil decreased by 530 thousand barrels, or 1.3%, to 40,048 thousand barrels. Sales volume ofnatural gas decreased by 7,614 million cf, or 4.8%, to 152,056 million cf. Sales volume of overseas natural gas decreased by 7,913
million cf, or 6.1%, to 122,362 million cf, and sales volume of domestic natural gas increased by 8 million m3, or 1.0%, to 796
million m3 (29,694 million cf). The average sales price of overseas crude oil decreased by US$0.46, or 0.4%, to US$105.75 perbarrel, and the average sales price of overseas natural gas decreased by US$0.05, or 0.4%, to US$12.78 per thousand cf.
Meanwhile, the average sales price of domestic natural gas increased by ¥7.46, or 15.0%, to ¥57.14 per m3. The average exchange
rate of Japanese yen against U.S. dollar on consolidated net sales depreciated by ¥4.05, or 4.1%, to ¥102.82 per U.S. dollar fromthe corresponding period of the previous fiscal year.
The increase of ¥12.6 billion in net sales was mainly derived from the following factors: regarding net sales of crude oil andnatural gas, decrease in sales volume pushing sales down of ¥15.9 billion, increase in sales price contributing ¥4.9 billion to theincrease, the depreciation of Japanese yen against U.S. dollar contributing ¥23.8 billion to the increase, and a decrease in net sales
excluding crude oil and natural gas of ¥0.1 billion.
Cost of sales for the six months ended September 30, 2014 increased by ¥8.5 billion, or 3.4%, to ¥257.8 billion due toincrease in depreciation and amortization mainly in the ADMA block and the depreciation of Japanese yen against U.S. dollar.
Exploration expenses decreased by ¥1.1 billion, or 7.0%, to ¥15.5 billion due mainly to a decrease in exploration activities in the
Middle East and Africa regions. Selling, general and administrative expenses increased by ¥2.7 billion, or 6.8%, to ¥43.0 billion.
As a result, operating income increased by ¥2.4 billion, or 0.7%, to ¥346.7 billion.
Other income increased by ¥11.8 billion, or 64.3%, to ¥30.1 billion due to increases in foreign exchange gain and equity inearnings of affiliates. Other expenses decreased by ¥3.5 billion, or 29.6%, to ¥8.4 billion. As a result, ordinary income and income
before income taxes and minority interests increased by ¥17.8 billion, or 5.1%, to ¥368.4 billion.
Total amount of current income taxes increased by ¥50.5 billion, or 22.2%, to ¥278.3 billion, and deferred income taxes were¥(0.3) billion, income before minority interests increased by ¥10.2 billion, or 12.7%, to ¥90.5 billion, and minority interests were¥1.7 billion. As a result of the above effects, net income for the six months ended September 30, 2014 increased by ¥8.6 billion, or
10.8%, to ¥88.7 billion from the corresponding period of the previous fiscal year.
Financial results by segment are as follows:
1)

2)

3)

4)

5)

Japan
Net sales increased by ¥6.6 billion, or 12.8%, to ¥58.7 billion due to increases in sales volume of natural gas and sales price of
natural gas. Operating income increased by ¥1.3 billion, or 21.5%, to ¥7.7 billion.
Asia & Oceania
Net sales decreased by ¥9.6 billion, or 4.0%, to ¥228.8 billion due to decreases in sales volume and others, despite thedepreciation of Japanese yen against U.S. dollar. Operating income increased by ¥3.3 billion, or 2.8%, to ¥120.3 billion due todecreases in operating expenses and others.
Eurasia (Europe & NIS)
Net sales increased by ¥7.3 billion, or 13.6%, to ¥61.4 billion due to an increase in sales volume and the depreciation of Japanese
yen against U.S. dollar, despite a decrease in sales price of crude oil. Operating income decreased by ¥0.1 billion, or 0.6%, to¥26.1 billion due to increases in operating expenses and others.
Middle East & Africa
Net sales increased by ¥6.9 billion, or 2.3%, to ¥307.8 billion due to the depreciation of Japanese yen against U.S. dollar, despite
decreases in sales volume and sales price of crude oil. Operating income increased by ¥1.5 billion, or 0.8%, to ¥205.2 billion.
Americas
Net sales increased by ¥1.3 billion, or 26.6%, to ¥6.2 billion due to an increase in sales price of natural gas and the depreciationof Japanese yen against U.S. dollar, despite a decrease in sales volume. Operating loss increased by ¥3.4 billion, or 83.1%, to¥7.5 billion due to an increase in exploration expenses and others.

(2) Explanation on Consolidated Financial Position
Total assets as of September 30, 2014 increased by ¥185.6 billion to ¥4,223.7 billion from ¥4,038.1 billion as of March 31, 2014.
This is due mainly to an increase in tangible fixed assets by ¥231.7 billion owing to an increase in construction in progress.
Meanwhile, total liabilities increased by ¥59.9 billion to ¥1,102.0 billion from ¥1,042.1 billion as of March 31, 2014. Current
liabilities increased by ¥10.1 billion to ¥385.8 billion and long-term liabilities increased by ¥49.8 billion to ¥716.2 billion.
Net assets increased by ¥125.6 billion to ¥3,121.6 billion. Minority interests in net assets increased by ¥10.6 billion to ¥215.5
billion.

2ファ

Cash and cash equivalents as of September 30, 2014 totaled ¥129.0 billion reflecting a net increase of ¥11.5 billion from¥117.5 billion at the end of the previous fiscal year.
Cash flows from operating activities, investing activities and financing activities are as follows:
1) Cash flows from operating activities
Net cash provided by operating activities was ¥119.2 billion (increased by ¥48.0 billion from the corresponding period of theprevious fiscal year). This is due mainly to an increase in income before income taxes and minority interests and a decrease inincome taxes paid.
2) Cash flows from investing activities
Net cash used in investing activities decreased by ¥74.2 billion to ¥114.2 billion. This is due mainly to an increase in proceedsfrom time deposits and a decrease in payments for long-term time deposits, despite a decrease in proceeds from sales andredemptions of marketable securities and an increase in payments for purchases of tangible fixed assets.
3) Cash flows from financing activities
Net cash provided by financing activities decreased by ¥22.1 billion to ¥3.2 billion. This is due mainly to a decrease inproceeds from long-term debt.

(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results
Forecasts for consolidated financial results for the year ending March 31, 2015 have been revised from the previous forecastspresented on August 6, 2014, taking into consideration the consolidated financial results for the six months ended September 30,
2014.
Forecasts for consolidated financial results for the year ending March 31, 2015
Net sales(Millions of yen)

Operating income

Ordinary income

635,000

701,000

Net income

Previous Forecasts: A

1,316,000

Revised Forecasts: B

1,262,000

592,000

656,000

160,000

Increase (Decrease): B－A(54,000)(43,000)(45,000)(18,000)

(4.1)

(6.8)

(6.4)

(10.1)

Percentage change (%)

178,000

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

Revised Forecasts

1st Half (April 1, 2014 – September 30, 2014)
US$106.6/bbl (Actual)
1st quarter (actual) :US$109.8/bbl
Crude oil price
2nd Half (October 1, 2014 – March 31, 2015)
From 2nd quarter:
US$105.0/bbl(Brent)
US$85.0/bbl
Full Year :US$106.2/bbl (Average)
Full Year (April 1, 2014 – March 31, 2015)
US$95.8/bbl (Average)
1st Half (April 1, 2014 – September 30, 2014)¥103.0/US$ (Actual)
1st quarter (actual) :¥102.2/US$
2nd Half (October 1, 2014 – March 31, 2015)
Exchange rate
From 2nd quarter:¥100.0/US$¥110.0/US$
Full Year :¥100.5/US$ (Average)
Full Year (April 1, 2014 – March 31, 2015)¥106.5/US$ (Average)
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
the market conditions. Most of the crude oil prices the Company sells are lower than Brent price.

3

ファ

2. Notes Regarding Summary Information (Notes)(1) Significant changes 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) Adoption of the Accounting Standard for Retirement Benefits
Effective the three months ended June 30, 2014, the Company has applied provisions described in the main clause of Section
35 of the “Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan Statement No.26, issued on
May 17, 2012) and the main clause of Section 67 of the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No.25, issued on May 17, 2012) and has changed the calculation methods for retirement benefit obligations andservice costs. The method of attributing expected retirement benefits to periods has been revised from the straight-line method
to the benefit formula method, and the method of determining the discount rate has been revised from a method based on an
approximation of the employees’ average remaining service period to a method of using a single weighted average discountrate reflecting the estimated payment period and the amount for each estimated payment period of the retirement benefit.
In accordance with transitional accounting treatments as stated in Section 37 of the Accounting Standard, the impact of thechanges in calculation methods for retirement benefit obligations and service costs has been recognized as an adjustment toretained earnings at the beginning of the six months ended September 30, 2014.
As a result, liability for retirement benefits decreased by ¥246 million while retained earnings increased by ¥235 million
as of April 1, 2014. The impact on operating income, ordinary income and income before income taxes and minority interests
for the six months ended September 30, 2014 was immaterial.

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

As of March 31, 2014

As of September 30, 2014

(Assets)
Current assets
Cash and deposits

650,187

775,336

Accounts receivable-trade110,395

113,364

Marketable securities

201,000

191,486

Inventories

25,48530,034

Other

170,779

192,536

Less allowance for doubtful accounts(17,643)(17,700)

Total current assets

1,140,204

1,285,056

Buildings and structures, net

145,936

141,145

Wells, net

25,34824,436

Machinery, equipment and vehicles, net

112,898

108,543

Land

19,736

19,723

Construction in progress

626,520858,570

Other, net

21,33931,111

Total tangible fixed assets

951,779

1,183,529

Goodwill

81,08077,699Other

358,098

360,920

Total intangible assets

439,178438,620

Investment securities

476,407374,531

Recoverable accounts under production sharing

685,990

720,675

Other

472,175

354,978

(885)

(876)

Less allowance for recoverable accounts under
production sharing(123,483)(130,201)

Less allowance for investments in exploration(3,226)(2,573)

1,506,977

1,316,534

2,897,935

2,938,684

4,038,139

4,223,741

Fixed assets
Tangible fixed assets

Intangible assets

Investments and other assets

Less allowance for doubtful accounts

Total investments and other assets
Total fixed assets
Total assets

5

(Millions of yen)Accounts

As of March 31, 2014

As of September 30, 2014

(Liabilities)
Current liabilities
Accounts payable-trade

46,811

54,636

Short-term loans

21,95428,024

Income taxes payable

91,19888,890

Provision for exploration projects

9,816

8,447

Accrued bonuses to officers

110

54

Asset retirement obligations

2,353

1,775

Other

203,425

204,019

Total current liabilities

375,670

385,848561,674

591,784

Liability for retirement benefits

7,793

7,591

Provision for loss on business

6,977

7,420

234

212

Asset retirement obligations

25,95443,296

Other

63,79865,931

Total long-term liabilities

666,432

716,237

1,042,102

1,102,085

Common stock

290,809290,809

Capital surplus

679,287

679,287

Retained earnings

1,532,876

1,608,715

Treasury stock(5,248)(5,248)2,497,725

2,573,564

Unrealized holding gain on securities

44,73744,651

Unrealized loss from hedging instruments(17,578)(25,724)

Translation adjustments

266,224

313,583

Total accumulated other comprehensive income

293,382

332,510

Minority interests

204,928

215,580

Total net assets

2,996,036

3,121,655

Total liabilities and net assets

4,038,139

4,223,741

Long-term liabilities
Long-term debt

Accrued special repair and maintenanceTotal liabilities(Net assets)
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)
For the six months ended
September 30, 2014

For the six months ended
September 30, 2013

Accounts
Net sales

650,478

663,140

Cost of sales

249,245257,826

Gross profit

401,232

405,313

Exploration expenses

16,67815,508Selling, general and administrative expenses

40,31943,074

Operating income

344,234

346,731

Interest income

8,783

5,388

Dividend income

2,198

2,260

Equity in earnings of affiliates

―

7,971

Foreign exchange gain

―

5,302

Other

7,389

9,268

Total other income

18,37230,191

Interest expense

1,140

1,233

Equity in losses of affiliates

3,442

―

Provision for allowance for recoverable accounts under
production sharing

416

4,902

Provision for exploration projects

620

1

Foreign exchange loss

1,261

―

Other

5,080

2,287

Total other expenses

11,961

8,425

Ordinary income

350,645

368,497

Income before income taxes and minority interests

350,645

368,497

Income taxes-current

227,771

278,365

Income taxes-deferred

42,584(388)

Total income taxes

270,356

277,976

Income before minority interests

80,28890,520207

1,773

80,08088,747

Other income

Other expenses

Minority interests
Net income

7Consolidated Statement of Comprehensive Income(Millions of yen)
For the six months ended
September 30, 2013

Accounts

For the six months ended
September 30, 2014

80,28890,520

Unrealized holding gain (loss) on securities

18,115(80)

Unrealized loss from hedging instruments(20,887)―

Translation adjustments

98,306

46,702

Share of other comprehensive income of associates
accounted for by the equity method(12,068)(9,564)

Total other comprehensive income

83,46537,057

163,753

127,577

160,852

127,874

2,900

(296)

Income before minority interests
Other comprehensive income

Comprehensive income
Total comprehensive income attributable to
Shareholders of INPEX CORPORATION
Minority interests8(3) Consolidated Statement of Cash Flows(Millions of yen)
For the six months ended
September 30, 2013

For the six months ended
September 30, 2014

Income before income taxes and minority interests

350,645

368,497

Depreciation and amortization

23,95825,635

Amortization of goodwill

3,380

3,380

Provision for allowance for recoverable accounts under
production sharing

5,892

7,231

(15,898)(1,363)

Provision for accrued retirement benefits to employees

122―

Other provisions

765

(371)

Liability for retirement benefits―

47(10,982)(7,649)Interest expense

1,140

1,233

Foreign exchange loss (gain)

6,040

2,038

Equity in (earnings) losses of affiliates

3,442(7,971)30,90336,663(20,937)(33,158)

Accounts receivable-trade(8,701)(3,075)Inventories(6,525)(4,609)Accounts payable-trade

4,819

7,798

Other

(15,775)(10,388)

Subtotal

352,288383,939

Interest and dividends received

10,60012,803

Interest paid

(952)

(1,186)(290,715)(276,307)

71,220119,249

Accounts
Cash flows from operating activities

Provision for exploration projects

Interest and dividend income

Recovery of recoverable accounts under production sharing(capital expenditures)
Recoverable accounts under production sharing(operating expenditures)

Income taxes paid
Net cash provided by operating activities

9

(Millions of yen)
For the six months ended
September 30, 2013

For the six months ended
September 30, 2014

Payments for time deposits(70,032)(142,565)

Proceeds from time deposits

98,409318,297

Payments for long-term time deposits(296,390)(112,181)

Proceeds from long-term time deposits

15,000―(139,149)(228,017)

Proceeds from sales of tangible fixed assets

263

28

Payments for purchases of intangible assets(2,366)(2,475)

Proceeds from sales and redemptions of marketablesecurities

179,680

89,052

Payments for purchases of investment securities(10,275)(20,036)

62,43344,010(53,743)(38,626)

Decrease (increase) in short-term loans receivable(3,190)(3,009)Long-term loans made(17,333)(2,110)

Collection of long-term loans receivable

74,368

92

Payments for purchase of mining rights(27,076)(17,873)

914

1,128

(188,489)(114,287)

Increase in short-term loans

654

572

Proceeds from long-term debt

36,403

11,797

Repayments of long-term debt

(1,887)(6,830)

Proceeds from minority interests for additional shares

6,954

14,887

Cash dividends paid

(12,775)(13,144)

Dividends paid to minority shareholders(3,939)(3,939)

(16)

(90)

25,3933,253

Effect of exchange rate changes on cash and cash equivalents

48,082

3,331

Net increase (decrease) in cash and cash equivalents(43,793)

11,546

Cash and cash equivalents at beginning of the period

199,858

117,530

Cash and cash equivalents at end of the period

156,064

129,077

Accounts
Cash flows from investing activities

Payments for purchases of tangible fixed assets

Proceeds from sales and redemptions of investment
securities
Investment in recoverable accounts under production sharing(capital expenditures)

Other
Net cash used in investing activities
Cash flows from financing activities

Other
Net cash provided by financing activities10(4) 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 six months ended September 30, 2014 (April 1, 2014 through September 30, 2014):
None(Note on significant changes in shareholders’ equity)
For the six months ended September 30, 2014 (April 1, 2014 through September 30, 2014):
None

11

(Segment information)

I.

For the six months ended September 30, 2013 (April 1, 2013 through September 30, 2013)

1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

52,099238,430

54,106300,879

4,961

650,478－

650,478

－

－

－

－

－

－

－

－

Total

52,099238,430

54,106300,879

4,961

650,478－

650,478

Segment income (loss)

6,340

117,026

26,258203,715(4,145)349,195(4,961)

344,234

Total

*1

*2

Net sales
Sales to third parties
Intercompany sales andtransfers between segments

Notes:

1. Adjustments of segment income of ¥ (4,961) million include elimination of inter-segment transactions of ¥113 million andcorporate expenses of ¥ (5,074) million. Corporate expenses are mainly amortization of goodwill and general administrative
expenses that are not allocated to a reportable segment.
2. Segment income 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 six months ended September 30, 2014 (April 1, 2014 through September 30, 2014)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

58,754

228,806

61,466

307,8296,282

663,140－

663,140

－

－

－

－

－

－

－

－

Total

58,754

228,806

61,466

307,8296,282

663,140－

663,140

Segment income (loss)

7,700

120,353

26,107205,266(7,591)

351,836(5,104)

346,731

Total

*1

*2

Net sales
Sales to third parties
Intercompany sales andtransfers between segments

Notes:

1. Adjustments of segment income of ¥ (5,104) million include elimination of inter-segment transactions of ¥105 million andcorporate expenses of ¥ (5,210) million. Corporate expenses are mainly amortization of goodwill and general administrative
expenses that are not allocated to a reportable segment.
2. Segment income 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(Subsequent events)

For the six months ended September 30, 2014 (April 1, 2014 through September 30, 2014):
None

12

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

Category
Crude oil
Natural gas

Japan

Subtotal

For the six months ended
September 30, 2013
0.6 MMbbls(3.3 Mbbls per day)20.2 Bcf(110.3 MMcf per day)
4.4 MMboe(24.0 Mboe per day)For the six months ended
September 30, 2014
0.5 MMbbls(2.9 Mbbls per day)19.1 Bcf(104.4 MMcf per day)
4.1 MMboe(22.5 Mboe per day)

225.4 tons

239.5 tons

113.8 million kWh111.4 million kWh

8.5 MMbbls(46.3 Mbbls per day)
116.8 Bcf
(638.3 MMcf per day)30.5 MMboe(166.4 Mboe per day)
4.8 MMbbls(26.4 Mbbls per day)30.6 MMbbls(167.2 Mbbls per day)
0.2 MMbbls(1.3 Mbbls per day)18.7 Bcf(102.0 MMcf per day)
3.5 MMboe(19.3 Mboe per day)
44.8 MMbbls(244.5 Mbbls per day)
155.7 Bcf
(850.6 MMcf per day)
73.8 MMboe(403.4 Mboe per day)

6.3 MMbbls(34.6 Mbbls per day)
122.5 Bcf
(669.5 MMcf per day)29.4 MMboe(160.9 Mboe per day)
4.6 MMbbls(25.2 Mbbls per day)
30.4 MMbbls(166.0 Mbbls per day)
0.4 MMbbls(2.4 Mbbls per day)18.3 Bcf(99.9 MMcf per day)
3.7 MMboe(20.1 Mboe per day)
42.3 MMbbls(231.0 Mbbls per day)
159.9 Bcf
(873.8 MMcf per day)72.2 MMboe(394.7 Mboe per day)

225.4 tons

239.5 tons

113.8 million kWh111.4 million kWh

IodineElectric power
generation
Crude oil
Asia & Oceania

Natural gas
Subtotal

Eurasia(Europe & NIS)

Crude oil

Middle East & Africa

Crude oil
Crude oil

AmericasNatural gas
Subtotal
Crude oil
Natural gas

Total

Subtotal
IodineElectric power
generation

Notes:

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 six months ended September 30 regardless of a closing date of fiscal periods of its
subsidiaries or affiliates.
4. 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 60.2 MMbbls (328.9 Mbbls perday) of crude oil, 211.1 Bcf (1,153.4 MMcf per day) of natural gas, and in total 99.8 MMboe (545.1 Mboe per day) for the six
months ended September 30, 2013, and 57.5 MMbbls (314.5 Mbbls per day) of crude oil, 208.1 Bcf (1,137.3 MMcf per day) of
natural gas, and in total 96.7 MMboe (528.4 Mboe per day) for the six months ended September 30, 2014.
5. Boe means barrels of oil equivalent.
6. Iodine is refined by other company on consignment.
7. Figures are rounded to one decimal place.

13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:

Segment

CategoryJapan

Crude oil
Natural gas(excluding LPG)
LPG

383 Mbbls

4,074

404 Mbbls

4,578

29,395 MMcf

39,126

29,694 MMcf

45,465

4 Mbbls

32

2 Mbbls

22

Other

8,865

Subtotal

Asia & Oceania

Americas

Total

Notes:

8,687

52,099Crude oil
Natural gas(excluding LPG)
LPG

58,754

6,552 Mbbls

67,4455,683 Mbbls

63,625

110,432 MMcf

160,175

103,482 MMcf

154,272

1,459 Mbbls

10,8091,358 Mbbls

10,908Subtotal
Eurasia(Europe & NIS)
Middle East & Africa(Millions of yen)
For the six months ended
September 30, 2014
Sales volume
Net sales

For the six months ended
September 30, 2013
Sales volume
Net sales

238,430

228,806

Crude oil

4,978 Mbbls

54,106

5,538 Mbbls

61,466

Crude oil

28,644 Mbbls

300,879

28,409 Mbbls

307,829

21 Mbbls270

15 Mbbls

153

19,844 MMcf

4,691

18,880 MMcf

6,129

40,578 Mbbls

426,776

40,048 Mbbls

437,653

159,671 MMcf

203,993

152,056 MMcf

205,868

1,462 Mbbls

10,842

1,361 Mbbls

10,930

Crude oil
Natural gas(excluding LPG)
Subtotal

4,961

Crude oil
Natural gas(excluding LPG)
LPG

6,282

Other

8,865

8,687

Total

650,478

663,140

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 six months ended June 30 except those subsidiaries prepared their financial statements for consolidation purpose as of theconsolidation closing date. However, the significant effects of the difference in fiscal periods were properly adjusted inconsolidation.
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 mostlyof natural gas, and they are sold to Japanese, Korean, and Taiwanese customers in the form of LNG.

For the six months ended
September 30, 2013
CustomerAmounts(Millions of yen)

For the six months ended
September 30, 2014

Ratio

Amounts

Ratio

(%)

(Millions of yen)(%)

PERTAMINA

102,928

15.8

93,534

14.1

Idemitsu Kosan Co., Ltd.

59,2299.1

89,43213.5

14