Consolidated Financial Results for the Six Months ended June 30, 2023 [Japanese GAAP]
August 9, 2023
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
Representative: 1605: Takayuki Ueda, President

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

Contact person: Yoshihiro Wakita, General Manager, Corporate Communications Unit
TEL+81-3-5572-0750

Scheduled date of filing Quarterly Financial Report
Scheduled date of payment of cash dividends: August 10, 2023
: September 1, 2023

Preparation of supplementary explanatory materials
Meeting of quarterly financial results presentation: Yes: Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for the Six Months ended June 30, 2023 (January 1, 2023 - June 30, 2023)(1) Consolidated operating results(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales

Operating income

Net income attributableto owners of parent

Ordinary income

For the six months ended

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

June 30, 2023
June 30, 2022

1,078,789
1,098,476(1.8)–

570,534
584,548(2.4)–

696,485
626,32711.2–

254,255
184,14438.1–(Note): Consolidated comprehensive income: for the six months ended June 30, 2023, ¥543,874 million; [(20.6)%]
for the six months ended June 30, 2022, ¥684,627 million; [–%]Net income pershare-basic
For the six months ended
June 30, 2023
June 30, 2022

Net income pershare-diluted
Yen

Yen

194.68132.83––(Notes): 1. In the third quarter ended September 30, 2022, the Company finalized the tentative accounting treatment of the business combinations. As a result, thefigures for the six months ended June 30, 2022 reflect the finalization of the tentative accounting treatment.
2. The figures for the six months ended June 30, 2022 were adjusted retrospectively according to the changes in accounting policies, and the figures after
retrospective application are presented. The changes from the corresponding period of the previous fiscal year are not shown.

(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 June 30, 2023

6,864,727

4,535,685

62.2

As of December 31, 2022

6,259,853

4,022,370

60.1(Reference): Net assets excluding non-controlling interests: as of June 30, 2023, ¥4,270,206 million
as of December 31, 2022, ¥3,760,852 million(Note): The figures as of December 31, 2022 were adjusted retrospectively according to the changes in accounting policies, and the figures after retrospective
application are presented.

2. Dividends
Cash dividends per share
At 1st quarter end At 2nd quarter end At 3rd quarter end
For the year ended
December 31, 2022
For the year ending
December 31, 2023
For the year ending
December 31, 2023
(forecast)At fiscal year end

Total

Yen

Yen

Yen

Yen

Yen

–

30.00

–

32.00

62.00

–

37.00
–

37.00

74.00

(Notes): 1. Changes in projected dividends for the year ending December 31, 2023 from the previous forecast: Yes
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. For information regarding revision of dividend forecast, please refer to the press release “Notice Concerning Interim Dividend and Revision to Yearend Dividend Forecast” issued today (August 9, 2023).

3. Forecasts for Consolidated Financial Results for the year ending December 31, 2023 (January 1, 2023 - December 31, 2023)(Figures in % represent the changes from the previous fiscal year)

Net sales
Millions of Yen

For the year ending
December 31, 2023

Operating income% Millions of Yen

2,031,000 (12.6)% Millions of Yen

1,009,000 (19.0)

Net income
attributable toowners of parent

Ordinary income% Millions of Yen

1,151,000 (20.2)

Net income
per share%Yen

320,000 (30.6)

245.02(Notes): 1. Changes in forecasts for consolidated financial results for the year ending December 31, 2023 from the previous forecast: Yes
2. The changes from the previous fiscal year were adjusted retrospectively according to the changes in accounting policies, and the changes presented
are for the comparison with the figures for the previous fiscal year after retrospective application.

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: None: None(Note): Please refer to “2. Consolidated Financial Statements and Principal Notes (4) Notes to Consolidated Financial Statements (Changes in Accounting
Policies)” on page 11 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 June 30, 2023
1,386,667,167 shares as of December 31, 2022
80,654,673 shares as of June 30, 2023
80,672,863 shares as of December 31, 2022
1,306,002,898 shares for the six months ended June 30, 2023
1,386,326,951 shares for the six months ended June 30, 2022

(Note): The shares held by “the Board Incentive Plan Trust” are included in number of treasury stock at end of period.
(As of June 30, 2023: 892,173 shares As of December 31, 2022: 910,363 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, 2022
For the year ending
December 31, 2023
For the year ending
December 31, 2023
(forecast)At fiscal year end

Total

Yen

Yen

Yen

Yen

Yen

–

12,000.00–

12,800.00

24,800.00–

14,800.00–

14,800.00

29,600.00(Notes): 1. 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.
2. For information regarding revision of dividend forecast, please refer to the press release “Notice Concerning Interim Dividend and Revision to Yearend Dividend Forecast” issued today (August 9, 2023).

Index of the Attachments
1. Qualitative Information ∕ Financial Statements...................................................................................................................................... 2(1) Explanation on Consolidated Financial Results ............................................................................................................................... 2(2) Explanation on Consolidated Financial Position.............................................................................................................................. 3(3) Explanation Regarding Future Forecast Information Such as Forecasts for Consolidated Financial Results .................................. 4
2. Consolidated Financial Statements and Principal Notes........................................................................................................................ 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(Changes in Accounting Policies) ................................................................................................................................................... 11(Additional Information) ................................................................................................................................................................. 11(Segment Information and Others) .................................................................................................................................................. 12(Business Combinations) ................................................................................................................................................................. 14(Significant Subsequent Events) ...................................................................................................................................................... 15
3. Supplementary Information ................................................................................................................................................................. 16(1) Production, Orders Received and Sales Performance ................................................................................................................ 16-1-

1. Qualitative Information ∕ Financial Statements
In the third quarter ended September 30, 2022, the tentative accounting treatment of the business combinations was finalized, and in
the comparative analysis with the six months ended June 30, 2022, the figures reflect the significant revision of the initial allocation of
acquisition costs due to the finalization of the tentative accounting treatment. Please refer to “2. Consolidated Financial Statements andPrincipal Notes (4) Notes to Consolidated Financial Statements (Business Combinations)” for further information.
In addition, the changes in accounting policies have been made from the first quarter ended March 31, 2023, and the figures after
retrospective application are used in the comparative analysis with the six months ended June 30, 2022 and the year ended December
31, 2022. Please refer to “2. Consolidated Financial Statements and Principal Notes (4) Notes to Consolidated Financial Statements(Changes in Accounting Policies)” for further information.
Furthermore, the change in reportable segments has been made from the first quarter ended March 31, 2023, and the figures reflect therevision of the method of calculation for a portion of the sales volume and average sales price in the comparative analysis with the six
months ended June 30, 2022.
(1) Explanation on Consolidated Financial Results
Net sales for the six months ended June 30, 2023 decreased by ¥19.6 billion, or 1.8%, to ¥1,078.7 billion from the corresponding
period of the previous fiscal year due to a decrease in sales price of crude oil despite the depreciation in the average exchange rateof the Japanese yen against the U.S. dollar during the period. Net sales of crude oil decreased by ¥76.9 billion, or 9.1%, to ¥766.3
billion, and net sales of natural gas increased by ¥57.7 billion, or 23.6%, to ¥302.3 billion. Sales volume of crude oil decreased by
1,255 thousand barrels, or 1.8%, to 69,701 thousand barrels, and sales volume of natural gas increased by 10,795 million cf, or
4.5%, to 249,555 million cf. Sales volume of overseas natural gas increased by 15,854 million cf, or 8.6%, to 201,045 million cf,
and sales volume of domestic natural gas decreased by 135 million m3, or 9.5%, to 1,295 million m3 (48,338 million cf). The
average sales price of overseas crude oil decreased by US$14.85, or 15.4%, to US$81.44 per barrel. The average sales price ofoverseas natural gas decreased by US$0.06, or 1.0%, to US$6.02 per thousand cf, and the average sales price of domestic natural
gas increased by ¥30.36, or 42.3%, to ¥102.18 per m3. The average exchange rate of the Japanese yen against the U.S. dollar on
consolidated net sales depreciated by ¥11.71, or 9.5%, to ¥134.96 per U.S. dollar.
The decrease of ¥19.6 billion in net sales was mainly derived from the following factors: regarding net sales of crude oil andnatural gas, a decrease in sales volume pushing sales down of ¥9.3 billion, a decrease in unit sales price pushing sales down of¥92.8 billion, the depreciation in the average exchange rate of the Japanese yen against the U.S. dollar contributing ¥83.0 billion to
the increase, and a decrease in net sales excluding crude oil and natural gas of ¥0.5 billion.
Meanwhile, cost of sales decreased by ¥8.2 billion, or 1.8%, to ¥439.0 billion. Exploration expenses decreased by ¥2.0 billion, or
15.3%, to ¥11.3 billion. Selling, general and administrative expenses increased by ¥4.6 billion, or 8.7%, to ¥57.8 billion. As aresult, operating income decreased by ¥14.0 billion, or 2.4%, to ¥570.5 billion.
Other income increased by ¥20.5 billion, or 14.3%, to ¥163.8 billion. Other expenses decreased by ¥63.6 billion, or 62.7%, to¥37.8 billion mainly due to the absence of the modification loss on financial assets and others. As a result, ordinary income
increased by ¥70.1 billion, or 11.2%, to ¥696.4 billion.
Income taxes increased by ¥1.1 billion, or 0.3%, to ¥446.7 billion, and net loss attributable to non-controlling interests was ¥4.4
billion. As a result of the above effects, net income attributable to owners of parent increased by ¥70.1 billion, or 38.1%, to ¥254.2
billion.

-2-

Financial results by segment are as follows:
The changes in segment income and reportable segments have been made from the first quarter ended March 31, 2023, and the figures
based on the changed segment income and reportable segments are used in the comparative analysis with the six months ended June30, 2022. Please refer to “2. Consolidated Financial Statements and Principal Notes (4) Notes to Consolidated Financial Statements(Segment Information and Others)” for further information.
1) Oil & Gas JapanNet sales increased by ¥26.9 billion, or 24.1%, to ¥138.5 billion due to an increase in sales price of natural gas. Net income
attributable to owners of parent increased by ¥15.7 billion, or 123.1%, to ¥28.4 billion.
2) Oil & Gas Overseas - Ichthys Project
Net sales decreased by ¥3.3 billion, or 1.8%, to ¥183.9 billion due to a decrease in sales price of crude oil. Net income attributableto owners of parent increased by ¥31.4 billion, or 25.9%, to ¥152.9 billion mainly due to the absence of modification loss onfinancial assets and others.
3) Oil & Gas Overseas - Other Projects
Net sales decreased by ¥47.9 billion, or 6.1%, to ¥742.2 billion due to a decrease in sales price of crude oil. Net income attributableto owners of parent increased by ¥14.6 billion, or 23.6%, to ¥76.4 billion due to a decrease in income taxes and others.
(2) Explanation on Consolidated Financial Position
Total assets as of June 30, 2023 increased by ¥604.8 billion to ¥6,864.7 billion from ¥6,259.8 billion as of December 31, 2022.
Current assets increased by ¥177.7 billion to ¥907.2 billion due to an increase in securities and others. Fixed assets increased by¥427.0 billion to ¥5,957.5 billion due to increases in tangible fixed assets, investments and other assets, and others.
Meanwhile, total liabilities increased by ¥91.5 billion to ¥2,329.0 billion from ¥2,237.4 billion as of December 31, 2022. Current
liabilities increased by ¥226.6 billion to ¥753.3 billion, and long-term liabilities decreased by ¥135.0 billion to ¥1,575.6 billion.
Net assets increased by ¥513.3 billion to ¥4,535.6 billion. Total shareholders’ equity increased by ¥220.7 billion to ¥3,129.0
billion. Total accumulated other comprehensive income increased by ¥288.6 billion to ¥1,141.2 billion and non-controllinginterests in net assets increased by ¥3.9 billion to ¥265.4 billion.
Cash and cash equivalents as of June 30, 2023 totaled ¥154.8 billion reflecting a net decrease of ¥56.8 billion, from ¥211.6 billion
as of January 1, 2023.
The status of cash flows from operating, investing, and financing activities and their factors during the six months ended June 30,2023 are as follows:
1) Cash flows from operating activities
Net cash provided by operating activities amounted to ¥432.3 billion, up ¥21.3 billion year on year. This was mainly due to adecrease in trade receivables and a decrease in equity in losses (earnings) of affiliates, which is a non-cash item, despite the postingof modification gain on financial assets and others, and the absence of the modification loss on financial assets and others, which
are non-cash items.
2) Cash flows from investing activities
Net cash used in investing activities amounted to ¥367.2 billion, down ¥16.4 billion year on year. This was mainly due to a decreasein long-term loans made despite an increase in payments for purchases of securities.
3) Cash flows from financing activities
Net cash used in financing activities amounted to ¥120.0 billion compared with ¥12.1 billion of net cash provided for thecorresponding period of the previous fiscal year. This was mainly due to an increase in repayments of long-term debt.

-3-

(3) Explanation Regarding Future Forecast Information Such as Forecasts for Consolidated Financial Results
The Company revised the consolidated financial forecasts for the year ending December 31, 2023 as follows from the forecasts thatwere announced on May 10, 2023 as a result of revising the exchange rate assumptions for the year due to the trend of theweakening yen, taking into consideration the upturn in results for the six months ended June 30, 2023, and other factors.
Forecasts for consolidated financial results for the year ending December 31, 2023
(Millions of yen)
Net sales

Operating income

Ordinary income

Net income attributableto owners of parent

Previous Forecasts: A

1,994,000

984,000

1,077,000

300,000

Revised Forecasts: B

2,031,000

1,009,000

1,151,000

320,000

37,00025,00074,00020,000

1.9

2.5

6.9

6.7

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

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

Revised Forecasts

First Half average:

US$81.1/bbl

First Half average(actual):

US$79.9/bbl

Crude oil priceSecond Half average:

US$79.0/bbl

Second Half average:

US$80.1/bbl(Brent)- 3rd quarter average:

US$80.0/bbl- 3rd quarter average:

US$80.0/bbl- 4th quarter average:

US$77.9/bbl- 4th quarter average:

US$80.2/bbl

Full Year average:

US$80.0/bbl

Full Year average:

US$80.0/bbl

First Half average:¥131.2/US$First Half average(actual):¥135.0/US$

Second Half average:¥128.8/US$

Second Half average:¥135.0/US$

Full Year average:¥130.0/US$

Full Year average:¥135.0/US$

Exchange rate

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, 2022

As of June 30, 2023

(Assets)
Current assets
Cash and deposits

227,829

170,256

Accounts receivable-trade and contract assets

252,938

202,399

Securities

58,152

326,044

Inventories

68,15472,312

Other

135,346

150,415

Less allowance for doubtful accounts(13,020)(14,226)

Total current assets

729,401

907,201

157,137

158,100

Fixed assets
Tangible fixed assets
Buildings and structures, net
Wells, net

340,259

348,790

1,583,141

1,656,953

Land

18,17818,202

Construction in progress

339,787

391,708

Machinery, equipment and vehicles, net

Other, net

34,61531,501

2,473,118

2,605,256

Goodwill

40,33235,895

Other442,371449,442

Total intangible assets

482,704

485,338

Total tangible fixed assets
Intangible assets

Investments and other assets
Investment securities

742,914893,294

1,279,383

1,399,541

Recoverable accounts under production sharing

521,541

503,493

Other

87,205

128,324

(690)

(763)

(53,873)(54,728)(1,852)(2,230)2,574,629

2,866,931

5,530,452

5,957,526

6,259,853

6,864,727

Long-term loans receivable

Less allowance for doubtful accounts
Less allowance for recoverable accounts under
production sharing
Less allowance for investments in exploration
Total investments and other assets
Total fixed assets
Total assets-5-

(Millions of yen)Accounts

As of December 31, 2022

As of June 30, 2023

(Liabilities)
Current liabilities
Accounts payable-trade47,18335,334

Short-term loans

75,878242,119–88,000

Income taxes payable

126,675

121,729

Provision for bonuses

Commercial papers

1,458

–

Provision for bonuses to officers

130

60

Provision for loss on business

8,631

8,492

Provision for exploration projects

3,391

4,192

Asset retirement obligations

15,504

15,971

Other

247,887

237,498

Total current liabilities

526,740

753,398

Bonds payable

30,00030,000Long-term debt

1,164,369

922,026

Provision for stocks payment

245

312

Provision for special repair and maintenance

705

762

Liability for retirement benefits

689

2,093

Asset retirement obligations

303,159

330,953

Other

211,572

289,495

1,710,742

1,575,643

2,237,483

2,329,041

Common stock

290,809290,809

Capital surplus

683,382

683,434

Retained earnings

2,055,459

2,276,087

Treasury stock(121,358)(121,330)

Total shareholders’ equity

2,908,293

3,129,001

Unrealized holding gain (loss) on securities

4,147

3,448

Deferred gain (loss) on hedges

32,42135,285

Translation adjustments

815,989

1,102,471

Long-term liabilities

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

Accumulated other comprehensive income

Total accumulated other comprehensive income

852,558

1,141,205

261,517265,479

Total net assets

4,022,370

4,535,685

Total liabilities and net assets

6,259,853

6,864,727

Non-controlling interests-6-(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the six months ended
June 30, 2022
1,098,476

Accounts
Net sales(Millions of yen)
For the six months ended
June 30, 2023
1,078,789

Cost of sales

447,324

439,095

Gross profit

651,151

639,694

Exploration expenses

13,385

11,335

Selling, general and administrative expenses

53,21857,824

Operating income

584,548

570,534

16,51344,348Other income
Interest income
Dividend income
Equity in earnings of affiliates
Gain on reversal of allowance for recoverable accounts
under production sharing
Foreign exchange gain
Modification gain on financial assets and others

8,373

4,036

101,449

8,734

6,779

–

–

6,203

–

92,783

Other

10,153

7,720

Total other income

143,269

163,828

9,934

27,972–855

Foreign exchange loss

1,257

–

Modification loss on financial assets and others

80,010–Other

10,287

9,048

Total other expenses

101,490

37,877

Ordinary income

626,327

696,485

Income before income taxes

626,327

696,485

Income taxes

445,595

446,725

Net income

180,731249,760

Net loss attributable to non-controlling interests(3,412)(4,495)

Net income attributable to owners of parent

184,144

254,255

Other expenses
Interest expense
Provision for allowance for recoverable accounts under
production sharing-7-

Consolidated Statement of Comprehensive Income(Millions of yen)
For the six months ended
June 30, 2022

Accounts

Net income

For the six months ended
June 30, 2023

180,731249,760

Unrealized holding gain (loss) on securities

4,680

(699)

Deferred gain (loss) on hedges(6,061)(1,336)

Translation adjustments

458,585

280,738

46,69015,411

503,895

294,114684,627

543,874

678,445542,902

6,181

972

Other comprehensive income

Share of other comprehensive income of affiliates
accounted for by the equity-method
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to
Owners of parent
Non-controlling interests-8-(3) Consolidated Statement of Cash Flows(Millions of yen)
For the six months ended
June 30, 2022

Accounts

For the six months ended
June 30, 2023

Cash flows from operating activities
Income before income taxes

626,327

696,485

Depreciation and amortization

140,955

123,859

4,466

4,424

(6,779)855

Amortization of goodwill
Increase (decrease) in provision for allowance forrecoverable accounts under production sharing
Increase (decrease) in provision for exploration projects

169

478

Increase (decrease) in other provisions

4,838

113

Increase (decrease) in liability for retirement benefits

(444)

1,401

Decrease (increase) in asset for retirement benefits–(1,938)Interest and dividend income(24,887)(48,385)

Interest expense

9,971

28,004Foreign exchange loss (gain)

14,988466(101,449)(8,734)Equity in losses (earnings) of affiliates
Modification loss on financial assets and others

80,010–Modification gain on financial assets and others–(92,783)

41,713

40,111(3,942)(4,676)

Decrease (increase) in trade receivables(49,578)

58,654

Decrease (increase) in inventories(6,393)(1,946)

Increase (decrease) in trade payables

473(13,681)

Other

21,64917,149Subtotal

752,089

799,857

Interest and dividends received

14,711

56,060Recovery of recoverable accounts under production sharing(capital expenditures)
Increase in recoverable accounts under production sharing(operating expenditures)

Interest paid

(5,628)(24,853)

Income taxes paid

(350,121)(398,690)

Net cash provided by operating activities

411,051

432,374-9-

(Millions of yen)Accounts

For the six months ended
June 30, 2022

For the six months ended
June 30, 2023

Cash flows from investing activities
Payments for time deposits(2,465)(2,793)

Proceeds from time deposits

13,5485,501–(23,623)

Payments for long-term time deposits
Proceeds from long-term time deposits

–

3,374

(81,885)(84,899)

Proceeds from sales of tangible fixed assets

142

163

Payments for purchases of intangible assets(1,182)(1,244)

Payments for purchases of securities–(267,974)

Proceeds from sales and redemptions of securities–

26,977

Payments for purchases of investment securities(71,198)(104,327)

Proceeds from sales and redemptions of investment
securities

3,523

7,481

Purchase of shares of subsidiaries resulting in change inscope of consolidation(31,410)–Investment in recoverable accounts under production
sharing (capital expenditures)(17,748)(17,465)

Decrease (increase) in short-term loans receivable474(6,586)(306,674)(1,271)

Collection of long-term loans receivable

96,55986,205

Other

14,60913,246(383,708)(367,236)–

88,000

Payments for purchases of tangible fixed assets

Long-term loans madeNet cash used in investing activities
Cash flows from financing activities
Increase (decrease) in commercial papers
Increase (decrease) in short-term loans(1,050)20,121

Proceeds from long-term debt

113,851

102,906

Repayments of long-term debt

(72,937)(286,797)

2,781

7,709

Cash dividends paid

(38,809)(41,803)

Cash dividends paid to non-controlling interests(3,121)(4,667)

Other

11,449(5,473)

Net cash provided by (used in) financing activities

12,164(120,005)

Effect of exchange rate changes on cash and cash equivalents

37,943(1,944)

Net increase (decrease) in cash and cash equivalents

77,451(56,811)

Cash and cash equivalents at beginning of the period

191,213

211,656

Cash and cash equivalents at end of the period

268,665

154,844

Proceeds from non-controlling interests for additional
shares- 10 -

(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 June 30, 2023 (January 1, 2023 through June 30, 2023):
None(Note on significant changes in shareholders’ equity)
For the six months ended June 30, 2023 (January 1, 2023 through June 30, 2023):
None(Changes in Accounting Policies)(International Accounting Standards (IAS) 12 “Income Taxes” (amended in May 2021))
Some of the Group’s foreign consolidated subsidiaries and foreign equity-method affiliates have applied IAS 12 “Income Taxes”(amended in May 2021) from the first quarter ended March 31, 2023.
Due to the amendments, for transactions, such as for leases and decommissioning obligations, that give rise to equal taxable anddeductible temporary differences at the time of the transaction, it is clarified that a company should recognize deferred tax
liabilities and deferred tax assets arising from those differences. The amendments have been applied retrospectively and werereflected in the consolidated financial statements for the corresponding period of the previous fiscal year and for the previous
fiscal year.
As a result of this change, and compared with the figures before the retrospective application, in the consolidated balance sheet asof December 31, 2022, investment securities decreased by ¥2,451 million, deferred tax liabilities included in other under longterm liabilities increased by ¥13,540 million, retained earnings decreased by ¥10,983 million and translation adjustments
decreased by ¥5,008 million. In the consolidated statement of income for the six months ended June 30, 2022, equity in earnings
of affiliates increased by ¥78 million and income taxes increased by ¥452 million, compared with the figures before theretrospective allocation. In addition, because the cumulative effect was reflected in net assets as of the beginning of the year ended
December 31, 2022, retained earnings as of the beginning of the previous fiscal year decreased by ¥33,776 million.
(Additional Information)(Modification gain and loss on financial assets and others)
In accordance with International Financial Reporting Standards (IFRS) 9 “Financial Instruments” implemented to foreign
consolidated subsidiaries, the gain or loss was recognized mainly due to modification of financial assets that do not result inderecognition, revisions to estimated future cash flows of financial assets, and other factors.
(Application of practical solution on the accounting and disclosure under the group tax sharing system)
The Company and certain domestic consolidated subsidiaries have transitioned from the non-consolidated tax payment system tothe group tax sharing system from the first quarter ended March 31, 2023. In accordance with the transition, the accounting
treatment and disclosure of corporate tax, local tax and tax effect accounting are based on “Practical Solution on the Accounting
and Disclosure Under the Group Tax Sharing System” (Accounting Standards Board of Japan (“ASBJ”) Practical Issues Task
Force No.42, August 12, 2021).

- 11 -

(Segment Information and Others)(Segment information)
I. Information on changes in reportable segments and others
The reportable segments of the Group are components of the Group for which discrete financial information is available andregularly reviewed by the Board of Directors to make decisions about allocation of managerial resources and to assess theirperformance. Following the significant reclassifications to the business portfolio based on the Medium-term Business Planannounced in 2022 and the accompanying changes of the evaluation and analysis indicators used by the Board of Directors, theGroup made corresponding changes in segment income and reportable segments.
Segment income was previously reconciled with operating income on the consolidated statement of income. However, because
net income attributable to owners of parent is a management target in the Medium-term Business Plan and it is used as anindicator by the Board of Directors to make decisions about allocation of managerial resources and assess performance, thereconciliation was changed and segment income is reconciled with net income attributable to owners of parent on the
consolidated statement of income from the first quarter ended March 31, 2023 in order to conduct evaluations and analyses thatare more in line with actual conditions. In addition, as the main business of the Group is the global exploration, development,
production and sales of oil and natural gas, and loans and investments in companies engaged in such activities, namely the oiland natural gas business (“Oil & Gas”), the Group had previously used reportable segments by region. However, due tosignificant reclassifications to the business portfolio, the addition of initiatives for the five net-zero businesses to the Long-term
Strategy, and other factors, the reportable segments have been classified as “Oil & Gas Japan” and “Oil & Gas Overseas” fromthe first quarter ended March 31, 2023. The “Oil & Gas Overseas” segment is further classified as “Ichthys Project,” which is amajor operator project of the Group, and “Other Projects,” which is comprised of other overseas projects. The “Other” category
consists of the operating segments that are not included in the reportable segments, including the five net-zero businesses.
The reportable segments and other category after the changes are as follows.
Reportable segments, etc.
Oil & Gas Japan
Oil & Gas
Overseas
Other

Main business and project nameMinami-Nagaoka Gas Field, Naoetsu LNG Terminal

Ichthys Project

Ichthys LNG Project in Australia and exploration of surrounding area

Other Projects

Projects in Australia (excluding the Ichthys LNG Project), Southeast Asia, Europe, Abu Dhabi,
and other areas
Five net-zero businesses, transportation and sales business, civil engineering business, etc.

The segment information disclosed for the six months ended June 30, 2022 has been prepared based on the categories after thechanges. In addition, the changes in accounting policies have been made from the first quarter ended March 31, 2023, and thefigures after retrospective application are used in the six months ended June 30, 2022.

- 12 -

II. For the six months ended June 30, 2022 (January 1, 2022 through June 30, 2022)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Oil & Gas Japan

Other
*1

Oil & Gas Overseas

Total

Adjustments*2

Consolidated*3

Ichthys Project Other Projects

Net sales
Sales to third parties

111,610

187,282

790,254

9,328

1,098,476–

1,098,476

Intercompany sales and transfers
between segments

2,529

13,678–

2,891

19,098(19,098)–

Total

114,139

200,960

790,254

12,2191,117,574(19,098)

1,098,476

Segment income (loss)

12,767

121,526

61,862

1,305

197,461(13,317)

184,144

Notes: 1. The “Other” category consists of the operating segments that are not included in the reportable segments, and includes the five net-zero businesses, etc.
2. Adjustments of segment income (loss) of ¥(13,317) million consist of elimination of inter-segment transactions of ¥348 million and corporate expensesof ¥(13,665) million that are not allocated to reportable segments or the “Other” category. Corporate expenses are mainly amortization of goodwill andgeneral administrative expenses that are not allocated to a reportable segment and “Other” category.
3. Segment income (loss) is reconciled with net income attributable to owners of parent 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 “Oil & Gas Overseas - Other Projects” segment, the Group included INPEX Norway Co., Ltd. and INPEX Idemitsu Norge AS
in the scope of consolidation. As a result, goodwill in the segment increased by ¥19,293 million for the six months ended June30, 2022.

- 13 -

III. For the six months ended June 30, 2023 (January 1, 2023 through June 30, 2023)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Oil & Gas Japan

Other
*1

Oil & Gas Overseas

Total

Adjustments*2

Consolidated*3

Ichthys Project Other Projects

Net sales
Sales to third parties

138,553

183,930

742,281

14,024

1,078,789–

1,078,789

Intercompany sales and transfers
between segments

3,234

9,280

–

4,146

16,661(16,661)–

Total

141,787

193,210742,281

18,171

1,095,451(16,661)

1,078,789

Segment income (loss)

28,484

152,997

76,481

2,692

260,655(6,400)254,255

Notes: 1. The “Other” category consists of the operating segments that are not included in the reportable segments, and includes the five net-zero businesses, etc.
2. Adjustments of segment income (loss) of ¥(6,400) million consist of elimination of inter-segment transactions of ¥48 million and corporate expensesof ¥(6,448) million that are not allocated to reportable segments or the “Other” category. Corporate expenses are mainly amortization of goodwill andgeneral administrative expenses that are not allocated to a reportable segment and “Other” category.
3. Segment income (loss) is reconciled with net income attributable to owners of parent on the consolidated statement of income.

2. Information on impairment loss from fixed assets, goodwill and other items by reportable segment
None(Business Combinations)(Business combination through acquisition)
Significant revision of initial allocation of acquisition cost in comparative information
Although tentative accounting treatment was applied for the first quarter ended March 31, 2022 regarding the businesscombination with Idemitsu Snorre Oil Development Co., Ltd. (current corporate name: INPEX Norway Co., Ltd.) and Idemitsu
Petroleum Norge AS (current corporate name: INPEX Idemitsu Norge AS) executed on January 31, 2022 (deemed acquisition
date: January 1, 2022), the tentative accounting treatment was finalized in the third quarter ended September 30, 2022.
Following the finalization of the tentative accounting treatment, comparative information included in the consolidated financial
statements for the six months ended June 30, 2023, reflects the significant revision of initial allocation of acquisition cost.
As a result, for the consolidated statement of income for the six months ended June 30, 2022, cost of sales decreased by ¥212
million, selling, general and administrative expenses increased by ¥157 million and income taxes decreased by ¥217 million.
Accordingly, gross profit increased by ¥212 million, operating income, ordinary income and income before income taxes eachincreased by ¥54 million, net income increased by ¥272 million, net loss attributable to non-controlling interests decreased by¥214 million and net income attributable to owners of parent increased by ¥57 million.

- 14 -

(Significant Subsequent Events)(Acquisition and cancellation of the Company's own shares)
The Board of Directors of the Company resolved at a meeting held on August 9, 2023 for the Company to acquire its own sharespursuant to Article 156, as applied pursuant to paragraph 3, Article 165, of the Companies Act, and to cancel its own sharespursuant to Article 178 of the same act.
1. Reasons for acquisition and cancellation of own shares
To improve capital efficiency and enhance shareholder returns.
2. Details of the acquisition(1) Type of shares to be acquired:(2) Total number of shares to be acquired:

Common shares
Up to 80 million shares(3) Total cost of acquisition:(6.12% of total number of issued shares excluding own shares)
Up to 100.0 billion yen(4) Period of acquisition:(5) Method of acquisition:

From August 10, 2023 to December 29, 2023
Market purchases on the Tokyo Stock Exchange

3. Details of the cancellation(1) Type of shares to be cancelled:(2) Total number of shares to be cancelled:

Common shares
The total number of all own shares acquired in the acquisition processdescribed above (2.) and own shares held as of August 9, 2023 (79,762,500
shares)(3) Scheduled date of cancellation

January 31, 2024

(Reference) Total number of issued common shares and own shares held as of June 30, 2023
Total number of issued shares (excluding own shares):1,306,904,667 shares
Total number of own shares:
79,762,500 shares
Note: The shares held by the Board Incentive Plan Trust (892,173 shares) are not included in the number of own shares.

- 15 -

3. Supplementary Information(1) Production, Orders Received and Sales Performance
The change in reportable segments has been made from the first quarter ended March 31, 2023, and the figures disclosed for thesix months ended June 30, 2022 have been prepared based on the categories after the change.
1) Actual production
The following table shows actual production by segment:
Segment

Category

For the six months ended
June 30, 2022

Crude oil
Natural gas
Oil & Gas Japan
Subtotal
IodineElectric power generation
Crude oilIchthys Project

Natural gas

17.6 Bcf(97.1 MMcf per day)

3.9 MMboe(21.7 Mboe per day)

3.7 MMboe(20.3 Mboe per day)

286.2t281.3t111.5 million kWh103.0 million kWh

7.0 MMbbls

6.4 MMbbls(38.9 Mbbls per day)

(35.1 Mbbls per day)

181.8 Bcf

178.7 Bcf

(1,004.6 MMcf per day)

(987.3 MMcf per day)
40.8 MMboe

64.3 MMbbls

63.5 MMbbls(355.2 Mbbls per day)

(350.6 Mbbls per day)

42.7 Bcf

50.6 Bcf(236.0 MMcf per day)(279.7 MMcf per day)

72.0 MMboe

72.7 MMboe(398.0 Mboe per day)

(401.7 Mboe per day)49.3 Mtons

64.5 Mtons

Electric power generation

208.8 million kWh

723.9 million kWh

Crude oil

71.8 MMbbls(396.7 Mbbls per day)70.3 MMbbls(388.4 Mbbls per day)

243.3 Bcf

246.9 Bcf

(1,344.4 MMcf per day)

(1,364.1 MMcf per day)

118.4 MMboe

117.1 MMboe(653.9 Mboe per day)

(647.2 Mboe per day)

286.2t281.3tNatural gas

SulfurNatural gas
Total

18.8 Bcf(103.9 MMcf per day)

(225.2 Mboe per day)Subtotal

Other

0.5 MMbbls(2.6 Mbbls per day)

42.4 MMboe

Crude oil

Other Projects

0.5 MMbbls(2.7 Mbbls per day)(234.2 Mboe per day)Subtotal
Oil & Gas
Overseas

For the six months ended
June 30, 2023

Subtotal
IodineSulfurElectric power generation

49.3 Mtons

64.5 Mtons

320.3 million kWh

826.8 million kWh

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.
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 77.2 MMbbls (426.8 Mbbls perday) of crude oil, 248.2 Bcf (1,371.1 MMcf per day) of natural gas, and in total 124.6 MMboe (688.3 Mboe per day) for the six months ended June 30,
2022, and 74.0 MMbbls (408.7 Mbbls per day) of crude oil, 251.5 Bcf (1,389.8 MMcf per day) of natural gas, and in total 121.9 MMboe (673.2 Mboe
per day) for the six months ended June 30, 2023.
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.

- 16 -

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 six months ended
June 30, 2022
Sales volume

Oil & Gas JapanNet sales

Sales volume

Net sales

Crude oil

252 Mbbls

3,272

239 Mbbls

2,529

Natural gas(excluding LPG)

53,384 MMcf

102,736

48,338 MMcf

132,348

1 Mbbls

5

–

–

LPG
Other

5,595

3,675

Subtotal

111,610

138,553

Crude oilIchthys Project

For the six months ended
June 30, 2023

Natural gas(excluding LPG)

6,706 Mbbls

88,706

6,237 Mbbls

69,281

155,269 MMcf

98,575

165,355 MMcf

114,648

Subtotal

187,282

183,930

Oil & Gas

Crude oil

63,998 Mbbls

748,498

63,226 Mbbls

690,808

Overseas

Natural gas(excluding LPG)

29,922 MMcf

40,35135,690 MMcf

48,54734 Mbbls

262

441 Mbbls

2,801

Other Projects

LPG
Other

1,141

Subtotal

790,254

Crude oil
Natural gas
Other(excluding LPG)

2,730

–

3,683

184 MMcf

740

172 MMcf

964

–

1,930

–

3,058

LPG

3,927

Subtotal
Natural gas
Total(excluding LPG)
LPG

742,281–

Other
Crude oil

124

6,318

9,328

14,02470,956 Mbbls

843,20769,701 Mbbls

766,301

238,760 MMcf

242,404

249,555 MMcf

296,508

34 Mbbls

2,199

441 Mbbls

5,860

Other

10,664

10,118

Total

1,098,476

1,078,789- 17 -