ファConsolidated Financial Results for the year ended March 31, 2011 [Japanese GAAP]May 11, 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

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: Tokyo Stock Exchange

Scheduled date of ordinary general meeting of shareholders :June 28, 2011
Scheduled date of filing Financial report:June 29, 2011

Scheduled date of payment of cash dividends:June 29, 2011

Preparation of supplementary explanatory materials: Yes

Meeting of financial results presentation: Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for the year ended March 31, 2011 (April 1, 2010-March 31, 2011)(1) Consolidated operating results(Figures in % represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2011
March 31, 2010

Operating income

Millions of yen

943,080
840,427%

Millions of yen

12.2(21.9)

Ordinary income%

529,742461,667

14.7(30.4)Net income

Millions of yen%

Millions of yen%

508,587
442,02715.1(28.3)

128,699
107,21020.0(26.1)(Note) Consolidated comprehensive income: for the year ended March 31, 2011, ¥ 114,706 million; ((19.8)%)
for the year ended March 31, 2010, ¥ 143,106 million; (―%)
Net income per Net income per Net income as a percentage Ordinary income as a Operating income as aof net assets excluding
percentage of total assets percentage of net sales
share—basic
share—diluted
minority interests
For the year ended
Yen
Yen
%
%
%

March 31, 2011
March 31, 2010――

40,832.40
45,553.56

7.6
8.1

21.7
23.4

56.2
54.9

(Reference): Equity in earnings (losses) of affiliates: for the year ended March 31, 2011, ¥ 4,933 million
for the year ended March 31, 2010, ¥ (1,919) million(2) Consolidated financial position
Net assets excluding minority interests
Net assets excluding
as a percentage of total assets
minority interests per share
Millions of yen%
Yen

Total assets

Net assets

Millions of yen

As of March 31, 2011
As of March 31, 2010

2,680,379
2,013,778

2,097,382
1,490,603

74.5
68.9

546,958.90
589,548.88(Reference): Net assets excluding minority interests: as of March 31, 2011, ¥ 1,996,888 million
as of March 31, 2010, ¥ 1,387,499 million(3) Consolidated cash flows
For the year ended
March 31, 2011
March 31, 2010

Cash flows fromoperating activities
Millions of yen

Cash flows frominvesting activities
Millions of yen

274,093
241,372(844,511)(251,812)

Cash flows from
Cash and cash equivalents atfinancing activities
end of the year
Millions of yen
Millions of yen

548,057
68,937

182,025
216,395

2. Dividends
Cash dividends per share
At 1st
At 2ndAt 3rdquarter end quarter end quarter end
For the year ended
March 31, 2010
March 31, 2011
For the year ending
March 31, 2012
(forecast)

Yen

Yen

Yen

At fiscal
year end

Total

Total cash
Payout ratio
dividends (Annual) (Consolidated)

Cash dividends
as a percentageof net assets(Consolidated)

Yen

Yen

Millions of yen

%

%

―
―

2,500.00
3,000.00――

3,000.00
3,000.00

5,500.00
6,000.00

12,944
21,905

12.1
14.7

1.0
1.1

―

3,000.00―

3,000.00

6,000.00

1

16.9

ファ

3. Forecasted Consolidated Operating Results for the year ending March 31, 2012 (April 1, 2011-March 31, 2012)(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales
Millions of yen
For the six months ending
September 30, 2011
For the year ending
March 31, 2012

Operating income% Millions of yen

Ordinary income% Millions of yen

Net income pershare

Net income%

Millions of yen%

Yen

497,000

14.8

275,000

18.2

266,000

20.8

60,00018.5

16,434.33

1,016,000

7.7

569,000

7.4

550,000

8.1

130,000

1.0

35,607.72

4. Others(1) Significant changes in scope of consolidation: None(Note): Changes in the specified subsidiaries during the year due to change in scope of consolidation(2) Changes in accounting principles, procedures, presentations, etc., pertaining to preparation of consolidated financial statements
1. Changes due to changes in accounting standard: Yes
2. Other changes: None(3) Number of shares issued (Common stock)
1. Number of shares issued at the end of the year(including treasury stocks):
2. Number of treasury shares at the end of the year:

as of March 31, 2011: 3,655,810 shares
as of March 31, 2010: 2,358,410 shares
as of March 31, 2011: 4,916 shares
as of March 31, 2010: 4,916 sharesfor the year ended March 31, 2011: 3,151,894 sharesfor the year ended March 31, 2010: 2,353,494 shares

3. Number of average shares during the year:

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.

(Reference) Non-Consolidated Financial Results
1. Financial results for the year ended March 31, 2011 (April 1, 2010-March 31, 2011)(1) Operating results(Figures in % represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2011
March 31, 2010

Operating income

Millions of yen%

Millions of yen

376,689
347,7708.3
112.7

190,645
182,269

Net income pershare—basic
For the year ended
March 31, 2011
March 31, 2010

Ordinary income
%

4.6
103.9

Net income

Millions of yen%

Millions of yen%

207,194
184,913

12.0
135.2

119,269
96,461

23.6(70.2)Net income pershare—diluted
Yen

Yen

37,840.47
40,986.63――(2) Financial position

As of March 31, 2011
As of March 31, 2010

Net assets as apercentage of total assets

Total assets

Net assets

Millions of yen

Millions of yen%

1,947,667
1,329,869

1,819,663
1,208,024

93.4
90.8

Net assets per shareYen

498,415.80
513,289.83(Reference): Net assets: as of March 31, 2011, ¥ 1,819,663 million
as of March 31, 2010, ¥ 1,208,024 million*Indication of audit procedure implementation status
This earnings report is exempt from audit procedure based upon the Financial Instruments and Exchange Act. The audit procedure forconsolidated financial statements under the Financial Instruments and Exchange Act has not been completed at the time of disclosure of thisreport.
*Explanation regarding the appropriate use of estimated consolidated financial results
The aforementioned forecasts “3. Forecasted Consolidated Operating Results for the year ending March 31, 2012” are based on currently
available information and contain many uncertainties. The final results might be significantly different from the aforementioned forecasts due tochange in business conditions including oil and gas price levels, production and sales plans, project development schedules, government
regulations and financial and tax schemes. For further information, please refer on page 5.

2

Index of the Attachments

1.

Results of Operations and Financial Position………………………………………………………………………………..

4(1) Analysis on Consolidated Operating Results……………………………………………….…….………..…………….

4(2) Analysis on Consolidated Financial Position…………………………………………………………………………......

5(3) Dividend Policy and Dividends for the year ended March 31, 2011 and for the year ending March 31, 2012……………

5

2.

Overview of the INPEX CORPORATION Group…………………………………………………………………………..

7

3.

Management Policy………………………………………………………………………………………………………...

8(1) Management Strategy…………………………………………………………………………………………………….

8(2) Mid-to Long Term Management Key Initiatives…………………………………………………………………….……

8

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

10(1) Consolidated Balance Sheets………………………………………………………………………………………….....

10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………………………..

12

Consolidated Statements of Income……………………………………………………………………………………...

12

Consolidated Statements of Comprehensive Income…………………………………………………………………….

13(3) Consolidated Statements of Changes in Net Assets………………………………………………………………………

14(4) Consolidated Statements of Cash Flows………………………………………………………………………………….

174.

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

5.

(6) Basis of Presenting Consolidated Financial Statements…………………………………………………………………..

19(7) Changes in the Basis of Presenting Consolidated Financial Statements………………………………………………...

26(8) Notes to Consolidated financial Statements………………………………………………………………………………

28(Consolidated Balance Sheets) …………………………………………………………………………………………...

28(Consolidated Statements of Income) …………………………………………………………………………………….

30(Consolidated Statements of Comprehensive Income) …………………………………………………………………...

30(Consolidated Statements of Changes in Net Assets) …………………………………………………………………….

31(Consolidated Statements of Cash Flows) ………………………………………………………………………………..

33(Segment Information) …………………………………………………………………………………………………...

34(Financial Instruments) …………………………………………………………………………………………………..

39(Securities) ……………………………………………………………………………………………………………….

45(Derivatives Transactions) ……………………………………………………………………………………………….

47(Per Share Information) ………………………………………………………………………………………………….

48(Significant Subsequent Events) …………………………………………………………………………………………

49(Omissions of Disclosure) ………………………………………………………………………………………………..

49

Non-Consolidated Financial Statements……………………………………………………………………………………

50(1) Non-Consolidated Balance Sheets………………………………………………………………………………………..

50(2) Non-Consolidated Statements of Income………………………………………………………….……………………..

53(3) Non-Consolidated Statements of Changes in Net Assets…………………………………………………………………

54(4) Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern……………………………………………………………………
6.

19

56

Other………………………………………………………………………………………………………………………...

56(1) Production, Orders Received and Sales Performance…………………………………………………………………...

56

3

1 Results of Operations and Financial Position(1) Analysis on Consolidated Operating Results
During this fiscal year, while Japanese economy was on a course of self-sustaining recovery with business earning improvement,
capital spending recovery and steady performance of export, the economy recovery appeared to be pausing such as downturn inexport growth after the halfway of the year. Moreover, economic uncertainty has been prevailing due to the Great East Japan
Earthquake that occurred in March.
Under such business environment, WTI, an important indicator of global crude oil prices that affect our group’s businesses, started
from US$84.87 per bbl, and went down to below US$70 per bbl in May due to a decrease in crude oil demand backed by credit
uncertainty in Europe triggered by Greece financial crisis and then turned upward trend. After summer, the oil prices climbed up to
the range of around US$90 per bbl toward the end of December by supply uncertainty of crude oil due to hurricanes in the sea
around US and other reasons as well as strong economic indicators. After the turn of the year, the prices climbed up by the growing
tension in North Africa and the Middle East after mid-February and exceeded US$100 per bbl in early March, and closed at
US$106.72 per bbl at the fiscal year end. Meanwhile, domestic crude oil and petroleum products prices followed a similar patternof global oil price movements. Reflecting these situation, our group’s average sales price for crude oil for the fiscal year was at
US$84.34 per bbl which is US$15.94 higher compared with the previous year.
The foreign exchange market, another important factor that affects our group's businesses, began to trade at the ¥93 level to the
U.S. dollar and the yen appreciation continued.
In the face of aggravating U.S. economic indicators in June 2010, FOMC (Federal Open Market Committee) stated that the U.S.
economy was in a recession and Chairman Bernanke of Federal Reserve Board warned that the U.S. economic outlook remains“unusually uncertain.”
Reflecting such economic situation, market players expected that FRB would expand credit easing and cause to drop both longterm and short term interest rate. Accordingly, yen appreciated against the U.S. dollar gradually and recorded over ¥81 to the U.S.
dollar at the end of October, in spite of the exchange intervention by Bank of Japan in September.
FOMC announced the second round of quantitative easing in November and subsequently the announcement faded out market
overexpectation of further monetary easing and moderated the pressure for the yen appreciation against the U.S. dollar. However,
the yen sharply appreciated after the Great East Japan earthquake broke out. The dollar skidded to a postwar record low of ¥76.25
on speculation that Japanese companies would sell foreign currency assets to finance.
Eventually, the yen declined quickly at the ¥80 level to the U.S. dollar as G7 started intervention, and as a result, TTM closed at¥83.15 against the U.S. dollar which turned out to be ¥9.89 higher than that of the fiscal year end of March 31, 2010.
Consolidated net sales for the year ended March 31, 2011 increased by ¥102.6 billion, or 12.2%, to ¥943.0 billion from theprevious fiscal year due to an increase in sales price of crude oil and natural gas, despite a decrease in sales volume of natural gas
and a negative effect of appreciation of the Japanese yen against the U.S. dollar. Net sales of crude oil increased by ¥70.9 billion,or 14.6%, to ¥557.9 billion, and net sales of natural gas increased by ¥29.8 billion, or 9.1%, to ¥356.2 billion. Sales volume ofcrude oil increased by 556 Mbbls, or 0.7 %, to 76,651 Mbbls due to the commencement of production in the Van Gogh field andso on despite a decrease in sales volume in the ACG oil fields. Sales volume of natural gas decreased by 17,699 MMcf, or 4.2%,
to 401,228 MMcf. Sales volume of natural gas produced overseas decreased by 18,250 MMcf, or 5.1%, to 336,975 MMcf due toa decrease in sales volume in Offshore Mahakam Block and so on, and sales volume of domestic natural gas increased by 15 MM㎥, or 0.9%, to 1,722 MM ㎥ (64,253 MMcf). The average sales price of crude oil produced overseas increased by US$15.94 perbbl, or 23.3 %, to US$84.34 per bbl. Meanwhile, the average sales price of natural gas produced overseas increased by US$1.67
per Mcf, or 22.5%, to US$9.10 per Mcf. In addition, the average sales price of domestic natural gas increased by ¥4.68, or 12.6%,
to ¥41.73 per ㎥.
The increase of ¥102.6 billion in net sales was derived mainly from the following factors: a decrease in sales volume of ¥7.8
billion, an increase in unit sales price of ¥177.0 billion, the appreciation of the Japanese yen against the U.S. dollar of ¥68.4
billion and an increase in net sales excluding crude oil and natural gas of ¥1.8 billion.
Cost of sales for the year ended March 31, 2011 increased by ¥36.6 billion, or 12.3%, to ¥334.8 billion due mainly to an increasein 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 ¥3.7 billion, or 23.6%, to ¥12.0 billion, and selling, general and administrative
expenses increased by ¥1.6 billion, or 2.5%, to ¥66.5 billion. As a result, operating income increased by ¥68.0 billion, or 14.7%,
to ¥529.7 billion.
Other income increased by ¥9.7 billion, or 45.2 %, to ¥31.1 billion due to the record of gain on transfer of mining rights and anincrease in equity in earnings of affiliates. Other expenses increased by ¥11.2 billion, or 27.3%, to ¥52.3 billion due to an increasein provision for allowance for doubtful accounts and provision for allowance for recoverable accounts under production sharing
owing to the withdrawal from the Azadegan oil field in Iran. As a result, ordinary income increased by ¥66.5 billion, or 15.1%, to¥508.5 billion.
Total amount of current income taxes and deferred income taxes increased by ¥43.5 billion, or 13.4%, to ¥368.6 billion, andminority interests were ¥11.1 billion. As a result of the above effects, net income for the year ended March 31, 2011 increased by¥21.4 billion, or 20.0%, to ¥128.6 billion from the previous fiscal year.
Financial results by segment are as follows: effective from the year ended March 31, 2011, the Company adopted “AccountingStandard 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 Related Information”(ASBJ Guidance No.20, issued on March 21, 2008), the reportable segments and the calculation method of segment income
effective from the year ended March 31, 2011, are compared with the geographical segment information of the previous fiscal
year since the same calculation method is used.

41) Japan
Net sales increased by ¥10.5 billion, or 11.2%, to ¥104.5 billion due to an increase in sales volume and sales price of natural gas.
Operating income decreased by ¥6.5 billion, or 20.3%, to ¥25.9 billion due to an increase in net purchase of natural gas.
2) Asia & Oceania
Net sales increased by ¥54.4 billion, or 15.5%, to ¥406.8 billion due to an increase in sales price of crude oil and gas and anincrease in sales volume of crude oil despite an appreciation of the Japanese yen, and operating income increased by ¥44.7 billion,
or 23.4%, to ¥235.8 billion.
3) Eurasia (Europe & NIS)
Net sales decreased by ¥5.2 billion, or 7.1%, to ¥68.3 billion due to a decrease in sales volume of crude oil and an appreciationof the Japanese yen despite an increase in sales price of crude oil, and operating income decreased by ¥3.3 billion, or 8.3%, to¥36.4 billion.
4) Middle East & Africa
Net sales increased by ¥46.9 billion, or 15.4%, to ¥350.7 billion due to an increase in sales volume and sales price of crude oil,despite an appreciation of the Japanese yen, and operating income increased by ¥37.5 billion, or 18.3%, to ¥243.1 billion.
5) Americas
Net sales decreased by ¥4.0 billion, or 24.1%, to ¥12.6 billion due to a decrease in sales volume of crude oil, and operating loss
was ¥3.0 billion (¥1.0 billion of operating income for the previous fiscal year) due to an increase in exploration expenses.
On a next fiscal year outlook, consolidated net sales for the six months ending September 30, 2011 are expected to be ¥497.0
billion, to increase 14.8% compared with the six months ended September 30, 2010, and net sales for the year ending March 31,
2012 are expected to be ¥1,016.0 billion, to increase 7.7% compared with the year ended March 31, 2011.
Operating income for the six months ending September 30, 2011 is expected to be ¥275.0 billion, to increase 18.2% comparedwith the six months ended September 30, 2010, and operating income for the year ending March 31, 2012 is expected to be¥569.0 billion, to increase 7.4% compared with the year ended March 31, 2011.
Ordinary income for the six months ending September 30, 2011 is expected to be ¥266.0 billion, to increase 20.8% comparedwith the six months ended September 30, 2010, and ordinary income for the year ending March 31, 2012 is expected to be ¥550.0
billion, to increase 8.1% compared with the year ended March 31, 2011. Net income for the six months ending September 30,
2011 is expected to be ¥60 billion, to increase 18.5% compared with the six months ended September 30, 2010, and net income
for the year ending March 31, 2012 is expected to be ¥130.0 billion, to increase 1.0% compared with the year ended March 31,
2011.
Net sales for the year ending March 31, 2012 are expected to increase due to the forecasted increase in crude oil price comparedwith this fiscal year, and operating income, ordinary income and net income for the year ending March 31, 2012 are expected toincrease as well.
In these estimates, the crude oil price is assumed to be US$95.0 per barrel (for Brent crude) with the exchange rate of theJapanese yen against the U.S. dollar at ¥80 through the year ending March 31, 2012.

(2) Analysis on Consolidated Financial Position
Consolidated total assets as of March 31, 2011 increased by ¥666.6 billion to ¥2,680.3 billion from ¥2,013.7 billion as of March
31, 2011. Current assets slightly increased by ¥78 million to ¥492.9 billion due to a decrease in marketable securities and others
despite an increase in accounts receivable-trade and others. Fixed assets increased by ¥666.5 billion to ¥2,187.4 billion due
mainly to an increase in investment securities, tangible fixed assets, and recoverable accounts under production sharing.
Meanwhile, total liabilities increased by ¥59.8 billion to ¥582.9 billion from ¥523.1 billion as of March 31, 2011. Current
liabilities increased by ¥26.8 billion to ¥254.7 billion due to an increase in income taxes payable and a record of asset retirement
obligations. Long-term liabilities increased by ¥32.9 billion to ¥328.2 billion due to an increase in long-term debt and others.
Net assets increased by ¥606.7 billion, to ¥2,097.3 billion. Total shareholders’ equity increased by ¥632.3 billion, to ¥2,012.2
billion, of which common stock increased by ¥260.8 billion and capital surplus increased by ¥260.8 billion due to an issuance of
new shares. Total accumulated other comprehensive income decreased by ¥22.9 billion to ¥ (15.3) billion and minority interests
decreased by ¥2.6 billion to ¥100.4 billion.
As for cash flows for the year ended March 31, 2011, net cash provided by operating activities increased by ¥32.7 billion to¥274.0 billion from the previous fiscal year due to an increase in income before income taxes and minority interests due to anincrease in sales price of crude oil and natural gas. Meanwhile, net cash used in investing activities increased by ¥592.6 billion to¥844.5 billion due to an increase in payments for purchase of investment securities despite a decrease in investment inrecoverable accounts under production sharing (capital expenditures). Net cash provided by financial activities increased by¥479.1 billion to ¥548.0 billion due mainly to a proceeds from issuance of common stock. After deducting ¥12.0 billion of theeffect of exchange rate changes on cash and cash equivalents, the decrease in cash and cash equivalents at the end of the year
ended March 31, 2011 amounted to ¥34.3 billion. Cash and cash equivalents at the end of the year ended March 31, 2011 totaled¥182.0 billion reflecting the above net decrease of ¥34.3 billion from ¥216.3 billion at the end of the previous fiscal year.

(3) Dividend policy and Dividends for the year ended March 31, 2011 and for the year ending March 31, 2012
In order to secure a stable supply of oil and natural gas resources efficiently, INPEX CORPORATION Group aims to expand its
operating base. To this end, we are reinforcing investments in exploration and development in Japan and overseas, as well as inmaintenance and expansion of the supply infrastructure. The robust financial basis of INPEX CORPORATION Group is crucial
for maintaining this level of investment. Therefore, our basic policy is to maximize corporate value through ongoing maintenanceand enlargement of our reserves and production of oil and natural gas by affirmative investments, while paying out cash
dividends as direct compensation to shareholders, in light of the medium- to long-term prospects for INPEX CORPORATIONGroup.

5

We decided year-end dividend to be ¥3,000 per share for the year ended March 31, 2011 based on the policy above. With the
mid-term dividend of ¥3,000 per share, thus total dividend for the year is to be ¥6,000 per share.
We plan a mid-term dividend to be ¥3,000 per share and a year-end dividend to be ¥3,000 per share for the year ending March 31,
2012, and thus a total dividend for the year is to be ¥6,000 per share.
As to the use of retained earnings, we plan to apply them to investments for the purpose of maintenance and enlargement of ourreserves and production of oil and natural gas and so on.

6

2. Overview of the INPEX CORPORATION GroupThe INPEX CORPORATION Group consists of INPEX CORPORATION, 62 subsidiaries (including 53 consolidated
subsidiaries), 19 affiliates (including 12 equity method affiliates) and their 3 subsidiaries (as of March 31, 2011). The Group
primarily engages in exploration, development, production and sales of crude oil and natural gas in Japan as well as in Asia &Oceania, Eurasia (Europe & NIS), the Middle East & Africa and Americas.
The following diagram shows our Group’s business flow.
Crude oil and Natural gas exploration, development, production and sales

Crude Oil SalesINPEX CORPORATION＜Exploration, Development, Production＞●Consolidated subsidiaries(Asia & Oceania)
INPEX Natuna, Ltd.
INPEX Sahul, Ltd.
INPEX Alpha, Ltd.
INPEX Browse, Ltd.
INPEX Masela, Ltd.
(Eurasia (Europe & NIS))INPEX Southwest Caspian Sea, Ltd.
INPEX North Caspian Sea, Ltd.
(Middle East & Africa)
Japan Oil Development Co., Ltd.
Teikoku Oil (D.R. Congo) Co., Ltd.
(Americas)
Teikoku Oil (Venezuela) Co., Ltd.
Other 32 consolidated subsidiaries●Equity method affiliates(Asia & Oceania)
MI Berau B.V.
(Middle East & Africa)
Angola Japan Oil Co., Ltd.
(Americas)
INPEX Offshore North Campos, Ltd.
Other 9 equity method affiliates

Crude Oil
Sales

Crude Oil
Sales

Crude Oil Sales

Pipeline, Liquefaction etc.

Natural Gas andother Sales

Pipeline, Liquefaction
Refining etc.

Drilling, Civil work etc.

＜Pipeline, Liquefaction, Refining Marketing etc.＞●Consolidated subsidiaries(Asia & Oceania)
INPEX DLNGPL Pty Ltd(Eurasia(Europe & NIS))INPEX BTC Pipeline, Ltd.
(Japan)Teiseki Pipeline Co., Ltd.
Teiseki Propane Co., Ltd.
Other 3 consolidated subsidiaries●Consolidated subsidiaries(Japan)Teiseki Drilling Co., Ltd.
And one consolidated subsidiary

Natural Gas andother Sales

Drilling, Civil work etc.

Other business

Note : 1 symbol “→” indicates capital investment（including indirect holdings）
2 symbol “⇒” indicates products and service flow

7

Customers〈Oversea’s Crude oil Sales〉
INPEX Trading , Ltd.
(Consolidated Subsidiary)

Crude Oil/ Natural GasSales3. Management Policy(1) Management Strategy
In pursuit of development of oil and natural gas which is the fundamental business of the Company, we seek to improve theproductivity and profitability of our existing oil and gas fields in Japan and overseas. At the same time, we are working steadily
and proactively to commercialize undeveloped oil and gas resources, especially those in our operator projects. Furthermore, toensure sustainable growth in the medium to long-term perspective, we are leveraging to maximize our substantiallystrengthened ability to obtain upstream interests as a consequence of the business integration by building a more balanced asset
portfolio, further strengthening our solid financial base, and mobilizing our practical operational and technical capabilities. By
maintaining and increasing our reserves and production of oil and natural gas, we will endeavor to secure stable profits over the
medium to long term and to achieve enhanced corporate value over time.
(2) Mid-to Long Term Management Key Initiatives
The key management initiatives for the Company in developing oil and natural gas resources are to produce oil and natural
gas in a stable manner ensuring safety and taking care of the environment communities, and achieving sustainable growth bymaintaining and expanding reserves through reinvesting the cash flow obtained from existing oil and gas fields. By combining
overseas projects that promise high growth potential due to expansion of reserves with domestic projects without the attendant
country risk and foreign currency risk, we are seeking qualitative improvements in our asset portfolio. At the same time, byleveraging our business resources more effectively through an organic linkage of our overseas assets and domestic
infrastructure, we aim to further enhance corporate value.
As our immediate business challenges, we will continue to move forward with exploration and development in new andexisting projects such as the WA-37-R (Ichthys) gas and condensate project in Australia, the Masela Block (Abadi) gas projectin Indonesia, the Abu Dhabi offshore oil fields in the UAE and the Kashagan and ACG fields in the Caspian Sea. Domestically,
we are working to increase the scale of our natural gas business by optimal utilization of natural gas assets in overseas anddomestic supply infrastructure including the planned LNG receiving terminal in Naoetsu Port in Niigata Prefecture. Since weanticipate continuous substantial investment in order to achieve the growth strategy of the Company, we must continuously
take appropriate measures for funding although we have strengthened our financial basis through the equity rasing in August
2010.
We will undertake operations according to the following policies in order to implement the business strategy of theCompany.
① Achieve Well Balanced Asset Portfolio- Regional Diversification
The operating area of the Company has diversified to include Asia, Oceania, the Middle East, the Caspian Sea, Central
and South America, and Africa, besides Japan, and the regional balance of our asset portfolio has improved significantly.
However, we recognize the need to reduce our dependence on specific regions from the viewpoint of country andoperating risks, and we will continue to be proactive in considering investment in other new promising areas.
- Output ratio between Crude Oil and Gas
According to the outputs by products, the share of crude oil is more than 50% while the share of natural gas is less than50%.
Crude oil is utilized all over the world as an easily handled fuel with various uses as well as easiness of transportationand storage. As crude oil is a rather sensitive commodity, the selling prices are easily influenced by the condition of themarket.
However, the customers are not fixed in a long term, and the amount of the investment for production and transportation
facilities is small in comparison with that of natural gas. Furthermore, the time required for the development stage isrelatively short so that the company can gain profit comparatively quickly after the oil fields are discovered.
Natural gas is the most environmentally friendly fuel among fossil energies and its utilization is expected to bepromoted as a quick effective measure against global warming. Commercial production of natural gas requires substantial
investments and a long lead time of preparation for constructing liquefaction plants and pipelines. Since the buyer also
must make large investments in LNG receiving facilities, stable and long-term sales contracts are essential. With anassurance of long term LNG supply to the customers, relatively stable profitability is achieved while it is sensitive to oil
price fluctuations.
Regarding acquisition of new projects, we focus on a balance between crude oil and natural gas to ensure efficientinvestment with a view to long-term cash flow.
- Balancing the Project Phases among Exploration, Development and Production
Because crude oil and gas reserves are limited, we continuously seek to acquire new reserves in order to ensure stableprofitability. Therefore, we reinvest in exploration to discover new reserves while maintaining our cash flow fromproduction. Projects must be carried out continuously in order to allocate and balance our assets among exploration,
development and production stages. To achieve this balance, we invest in exploration, producing and undeveloped oil andgas assets.
- Balancing Contractual Arrangements
We intend to diversify the risk of oil price volatility by balancing contractual arrangements among production sharing
contracts, or concession contracts, for which profit is linked to the price of oil, with service contracts or fixed margin
contracts, for which profitability is less influenced by oil prices and amounts are fixed.

8② Investments through Acquisition relative to the Expiration of Working Interests
The production sharing contract for the offshore Mahakam area, which is the Company’s major gas production project,
expires in 2017. Although we will negotiate to extend the contract, production is expected to decline in the long term as theremaining reserves decline even if the contract is renewed. We intend to maintain and increase production beyond 2017 byacquiring working interests from other companies or participating in new projects or taking over companies that havesubstantial production and stable cash flow.
③ Enhance Activities and Capabilities as an Operator
In acting as an operator, we face managerial issues such as the difficulty in securing manpower and the heavy burden offinancing. However, involvement as an operator also increases our opportunities to obtain new working interests by improving
our technological capabilities and winning recognition from oil and gas producing countries and international oil companies.
The Company is pursuing opportunities to act as an operator with enhanced technological capabilities resulting from businessintegration, while addressing the effective utilization of management resources.
④ Strengthening Relationships with Leading Domestic and International Oil and Gas Companies
Developing petroleum and gas involves considerable risks. Large-scale projects in particular require huge investments,
presenting an insuperable obstacle for a single company. Companies form a consortium to share the risk, and this is aninternational practice too. The Company plans to expand its business and to diversify risks by increasing opportunities toparticipate in projects through enhanced cooperation with major international oil companies, national oil companies in oil andgas producing countries as well as leading private oil resource developers, trading companies and other energy-relatedcompanies.
⑤ Enlarging the Company’s Business Domain through Organic Linkage of Domestic and Foreign Assets
The Company aims to expand operations in the domestic natural gas market, which represents a stable base of earnings
that is expected to grow. As well as building a natural gas pipeline network to supply the promising market in the
Kanto-Koshinetsu region, we plan to expand production in the key Minami Nagaoka gas field. We also own promising
undeveloped assets, primarily natural gas, in Indonesia and Australia, and to ensure their long-term growth. We will consider
the possibilities of gas business integration that organically links these overseas gas assets with our domestic infrastructure(gas supply chain), as an aggressive pursuit of the enlarged business domain.
⑥ Promote an Efficient and Transparent Corporate Management
The Company bears the heavy responsibility of assuring a stable supply of energy to Japan in an efficient manner.
Consequently, we recognize not only that our corporate social responsibility is increasing but also that it is essential that we
exercise sensitivity in conducting business in communities in Japan and around the world. Therefore, we intend to manage
our business in an efficient and transparent manner in line with global standards.
⑦ Health, Safety and Environmental Efforts
The Company has organized integrated HSE (Health, Safety and Environment) management system in line withinternational standards and has been trying hard to secure the safety and health of people concerned in our business and theenvironment. The Company places prevention of incident as the top priority and positively address to improve required
documents including manuals and to develop skills through personnel training and education for emergency situation. As forenvironmental issues, particularly global warming, we make every effort to minimize the effects on surrounding areas when
we explore, develop, produce and sell energy resources. Also we are working to reduce our greenhouse gas emission unit,
reduce emissions of chemical substances, suppress emissions into the atmosphere and river systems, prevent soil pollution,
reduce waste and conserve biological diversity.
⑧ Development of New BusinessOur group has set up “Evolvement into a company that offers diversified forms of energy” as one of our mid-to long-term
strategies and is doing business based on the strategy. Our main goal is to live with global community and to contribute to thesustainable social development by growing ourselves to be an energy company, who is capable of supplying a variety ofenvironmentally friendly energies in addition to oil and natural gas. In particular, we pursue opportunities to participate in
new business or develop new business, in cooperation with both domestic and international companies, universities andothers, for new energy such as GTL (Gas to Liquids) that are produced as oil substitutes by reforming natural gas at a normal
temperature, renewable energy such as solar photovoltaic and power generation, wind power or geothermal power
generation and biomass fuel etc. and technologies for expansion of access to renewable energy including reserve cell and fuelbattery.

In order to supply energy in a stable and efficient manner and thereby contribute to the good of society, the Company aims
to maintain and expand its reserves and production and will seek to allocate our business resources optimally and maintainthe soundness of our financial position with a view to securing steady growth.
In addition, to fulfill our corporate social responsibility, we will strengthen corporate governance and compliance, andcarry out strict safety management throughout our operations. Recognizing our obligation to protect the environment and to
become an integral part of the communities where we operate, we aim to improve our corporate value over the long term.

9更新日時:2011/05/11 11:21:00

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印刷日時:11/05/11 13:23

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

As of March 31, 2010

As of March 31, 2011

(Assets)
Current assets
Cash and deposits

119,809112,395

Accounts receivable-trade

88,364

95,391Marketable securities

213,040

207,165

Inventories*1

12,322*1

12,137

Deferred tax assets

5,355

9,450

Accounts receivable-other

43,16057,032

Other

10,824

12,500(22)(13,141)

492,854492,932

Buildings and structures, net

127,599

118,054

Wells, net

18,19328,604

Machinery, equipment and vehicles, net

45,72858,227

Land

20,78920,707

Construction in progress

91,44775,077

Other, net

54,33579,189*2,4,5 358,094*2,4,5 379,861

Goodwill

108,122

101,362

Exploration and development rights

107,856

125,228

Mining rights

18,154

17,554

Other

5,070

4,966

Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets

Total tangible fixed assets
Intangible assets

Total intangible assets*5239,205*5

249,110*3,4403,978*3,4

975,541

Investments and other assets
Investment securities
Long-term loans receivable

18,641

13,979Recoverable accounts under production
sharing

514,645534,330

Deferred tax assets

24,563

27,213

Other

*3,4

72,576*3,4

118,340

Allowance for doubtful accounts

(640)

(270)

Allowance for recoverable accounts
under production sharing(94,891)(96,879)

Allowance for investments in exploration(15,248)(13,780)

Total investments and other assets

923,624

1,558,474

Total fixed assets

1,520,923

2,187,447

Total assets

2,013,778

2,680,37910

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印刷日時:11/05/11 13:23(Millions of yen)Accounts

As of March 31, 2010

As of March 31, 2011

(Liabilities)
Current liabilities
Accounts payable-trade16,601

Short-term loans*4

Income taxes payable

4,872

23,441*4

86,534

Accounts payable-other*4

Provision for exploration projects

81,211

4,441
113,101*4

83,30915,324

9,537

Accrued bonuses to officers

132

127

Asset retirement obligations

―

3,686

Other

23,22817,083

Total current liabilities

227,905

254,728*4 235,510*4 268,706

Deferred tax liabilities

27,13936,517

Accrued retirement benefits to employees

7,585

6,979

14,257

―

1,964

―

Accrued special repair and maintenance

442

443

Asset retirement obligations

―

8,965

Long-term liabilities
Long-term debt

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

Other

*4

Total long-term liabilities

8,369

*4

6,655

295,269

328,268

523,175

582,997

Common stock

30,000290,809

Capital surplus

418,477

679,287

Retained earnings

936,744

1,047,431

Treasury stock(5,248)(5,248)1,379,974

2,012,280

Unrealized holding gain on securities

12,351

1,455

Translation adjustments(4,826)(16,847)

Total accumlated other comprehensive
income7,525(15,391)

Minority interests

103,103

100,493

Total net assets

1,490,603

2,097,382

Total liabilities and net assets

2,013,778

2,680,379

Total liabilities(Net assets)
Shareholders’ equity

Total shareholders’ equity
Accumlated other comprehensive income

1112ァイル名:③-2H23.3_bPL_包括利益【済】.doc

更新日時(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)Accounts

For the year ended
March 31, 2010

For the year ended
March 31, 2011

Net sales

840,427

943,080

Cost of sales

298,167

334,833

Gross profit

542,259

608,247

Exploration expenses

15,71012,000*1,2Selling, general and administrative expenses

64,880*1,2

66,504

461,667

529,742Interest income

4,353

4,110

Dividend income

9,476

5,721

Equity in earnings of affiliates

―

4,933

Gain on change in equity

―

3,644

Gain on transfer of mining rights

―

7,333

Other

7,643

5,432

Total other income

21,47331,176

Interest expense

1,274

1,073

Equity in losses of affiliates

1,919

―

Provision for allowance for doubtful accounts

―

9,132

Provision for allowance for recoverable accounts
under production sharing

6,028

11,481

Provision for exploration projects

8,594

3,082

Provision for investments in exploration

5,408

―

―

1,555

Foreign exchange loss

13,263

11,539

Other

4,624

14,466

Total other expenses

41,11352,331

Ordinary income

442,027

508,587

Income before income taxes and minority interests

442,027

508,587

Income taxes-current

322,993

367,082

Income taxes-deferred

2,132

1,614

325,125

368,697―

139,890

9,691

11,190107,210

128,699

Operating income
Other income

Other expenses

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

Total income taxes
Income before minority interests
Minority interests
Net income1213ァイル名:③-2H23.3_bPL_包括利益【済】.doc

更新日時

Consolidated Statements of Comprehensive Income(Millions of yen)Accounts

For the year ended
March 31, 2010

For the year ended
March 31, 2011―

139,890

Unrealized holding loss on securities―(10,950)

Translation adjustments―(11,516)

Share of other comprehensive income of associates
accounted for using equity method―(2,716)

Total other comprehensive income―*2(25,183)

Comprehensive income―*1

114,706

Income before minority interests
Other comprehensive income

Attributable to
INPEX shareholders―

105,782

Minority interests

―

8,923

13

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印刷日時:11/05/11 13:24(3) Consolidated Statements of Changes in Net Assets(Millions of yen)Accounts

For the year ended
March 31, 2010

For the year ended
March 31, 2011

Shareholders’ equity
Common stock
30,00030,000Issuance of new shares―

260,809

Total changes during the period―

260,809

30,000290,809418,477

418,477

Issuance of new shares―

260,809

Total changes during the period―

260,809418,477

679,287

844,832

936,744

Cash dividends paid

(15,297)(18,013)

Net income

107,210

128,699

Total changes during the period

91,912

110,686

936,744

1,047,431

Balance at beginning of the period(5,248)(5,248)

Balance at end of the period(5,248)(5,248)1,288,062

1,379,974―

521,619

Cash dividends paid

(15,297)(18,013)

Net income

107,210

128,699

Total changes during the period

91,912

632,305

1,379,974

2,012,280

Balance at beginning of the period
Changes during the period

Balance at end of the period
Capital surplus
Balance at beginning of the period
Changes during the period

Balance at end of the period
Retained earnings
Balance at beginning of the period
Changes during the period

Balance at end of the period
Treasury stock

Total shareholders’ equity
Balance at beginning of the period
Changes during the period
Issuance of new shares

Balance at end of the period14

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印刷日時:11/05/11 13:24(Millions of yen)Accounts

For the year ended
March 31, 2010

For the year ended
March 31, 2011

Accumulated other comprehensive income
Unrealized holding gain (loss) on securities
Balance at beginning of the period(6,817)

12,351Other changes in items other than thosein shareholders’ equity, net

19,169(10,895)

Total changes during the period

19,169(10,895)

Balance at end of the period

12,351

1,455

(0)

―

Other changes in items other than thosein shareholders’ equity, net

0―Total changes during the period

0―Balance at end of the period――(10,121)(4,826)

Other changes in items other than thosein shareholders’ equity, net

5,295(12,021)

Total changes during the period

5,295(12,021)(4,826)(16,847)(16,939)

7,525

Other changes in items other than thosein shareholders’ equity, net

24,465(22,916)

Total changes during the period

24,465(22,916)

Balance at end of the period

7,525(15,391)

90,938103,103

Other changes in items other than thosein shareholders’ equity, net

12,165(2,609)Total changes during the period

12,165(2,609)Balance at end of the period

103,103

100,493

Changes during the period

Unrealized loss from hedging instruments
Balance at beginning of the period
Changes during the period

Translation adjustments
Balance at beginning of the period
Changes during the period

Balance at end of the period
Total accumulated other comprehensive
incomeBalance at beginning of the period
Changes during the period

Minority interests
Balance at beginning of the period
Changes during the period15

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印刷日時:11/05/11 13:24

0(Millions of yen)Accounts

For the year ended
March 31, 2010

For the year ended
March 31, 2011

Total net assets
Balance at beginning of the period

1,362,060

1,490,603―

521,619

Cash dividends paid

(15,297)(18,013)

Net income

107,210

128,699

Other changes in items other than thosein shareholders’ equity, net

36,630(25,526)

Total changes during the period

128,542606,779

1,490,603

2,097,382

Changes during the period
Issuance of new shares

Balance at end of the period16

- 17 - - 17 -ファイル名:③(4) Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
March 31, 2010

Accounts

For the year ended
March 31, 2011

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

442,027

508,587

Depreciation and amortization

40,35454,245

Amortization of goodwill

6,759

6,760

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

―

1,555

Provision for allowance for doubtful accounts―

12,924

Provision for allowance for recoverable accounts
under production sharing

7,430

15,320

Provision for exploration projects

7,360(5,442)

Provision for accrued retirement benefits to employee

(902)

(592)

Provision for site restoration and decommissioning costs

59

―

4,484

(1,461)(13,829)(9,832)

Interest expense

1,274

1,073

Foreign exchange loss (gain)

2,379(3,014)Equity in (earnings) losses of affiliates

1,919(4,933)―(7,333)45,65350,816(14,996)(17,368)(14,638)(11,375)

Inventories

5,844

(222)

Accounts payable-trade

4,718

7,277

Accounts receivable-other(9,670)7,693

Accounts payable-other

13,6699,698

Advances received(1,120)(2,489)

Other

3,357

(594)

Subtotal

532,135

611,289

Interest and dividends received

16,16913,079Interest paid

(1,734)(747)

Income taxes paid

(305,198)(349,526)

Net cash provided by operating activities

241,372

274,093

Other provisions
Interest and dividend income

Gain on transfer of mining rights
Recovery of recoverable accounts under
production sharing (capital expenditures)
Recoverable accounts under production
sharing (operating expenditures)
Accounts receivable-trade17

- 18 - - 18 -ファイル名:③(Millions of yen)
For the year ended
March 31, 2010

Accounts

For the year ended
March 31, 2011

Cash flows from investing activities
Increase in time deposits(9,925)(493)

Decrease in time deposits

8,430

3,849

―

(53,500)(87,549)(84,235)

Proceeds from sales of tangible fixed assets

86

1,072

Payments for purchases of intangible assets(991)(2,535)―(11,731)

Proceeds from sales and redemptions of marketable securities

101,320

112,000

Payments for purchases of investment securities(156,264)(724,634)―

10,846(91,650)(77,864)

77

1,569

(7,521)(1,134)

Collection of long-term loans receivable

34

566

Payments for purchase of mining rights―(28,044)

Proceeds from transfer of mining rights

―

7,333

(7,860)2,424(251,812)(844,511)―

521,619

Decrease in short-term loans(20,121)―

Proceeds from long-term debt

108,062

56,285

Repayments of long-term debt

(5,283)(4,712)

Proceeds from minority interests for additional shares

4,704

6,418

Cash dividends paid

(15,306)(18,010)

Dividends paid to minority shareholders(2,972)(13,450)

Other

(145)

(92)

Net cash provided by financing activities

68,937548,057

Effect of exchange rate changes on cash and cash equivalents(4,947)(12,015)

Net increase (decrease) in cash and cash equivalents

53,550(34,374)

Cash and cash equivalents at beginning of the period

162,844

216,395―

4

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

Payments for purchases of marketable securities

Proceeds from sales and redemptions 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 issurance of common stock

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of the period*1

18

216,395*1

182,025

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印刷日時:11/05/11 13:25(5) Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern
None(6) Basis of Presenting Consolidated Financial Statements
For the year ended
March 31, 2010
1.Scope of consolidation
Number of consolidated subsidiaries: 54

For the year ended
March 31, 2011
1.Scope of consolidation
Number of consolidated subsidiaries: 53

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

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

During this period:
Number of new companies included in consolidated
subsidiaries:
1
Number of companies excluded from consolidated
subsidiaries:
1

During this period:
Number of new companies included in consolidated
subsidiaries:
5
Number of companies excluded from consolidated
subsidiaries:
6

Details for the above changes:(1) INPEX Offshore Northeast Brazil has been included due to establishment of the company.

Details for the above changes:(1) INPEX South Makassar, INPEX West CongoPetroleum, Ltd., INPEX Nganzi DRC S.P.R.L.
and INPEX Gulf of Mexico Co., Ltd. havebeen included due to establishment of the companies.

(2) Daiichi Warehouse Co., Ltd. has been excluded
due to share transfer.

(2) INPEX North Peru has been included due toincrease in materiality of the company.
(3)

INPEX Service has been excluded due romerger.

(4)

INPEX Jawa and INPEX Sumatra have been
excluded due to share transfer.

(5) Teikoku Oil de Venezuela, Teikoku Oil deSanvi-Guere and Teikoku Oil Nile NQR havebeen excluded due to completion of liquidation.
Names of major unconsolidated subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C. V., TELNITE CO.,LTD.

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

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

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

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

2. Application of equity method
Same as on the left

Number of affiliates accounted for by the equity method:
12

Number of affiliates accounted for by the equity method:
12

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

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

19

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For the year ended
March 31, 2010

印刷日時:11/05/11 13:25

For the year ended
March 31, 2011

During this fiscal year:
Number of companies excluded from affiliates accounted for by the equity method:1

During this fiscal year:
Number of companies included in affiliates accounted for by the equity method:
1

Detail for the above change:
Project Finance BLRE, Ltd. has been excluded due
to completion of liquidation.

Number of companies excluded from affiliates accounted for by the equity method:
1

Detail for the above change:(1) JAPAN CARABOBO, Ltd. has been included
due to establishment of the company.
(2) Bontang LNG Train H Investment Co., Ltd.
has been excluded due to completion of liquidation.
Names of major affiliates not accounted for by theequity method:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C.V., Telnite Co., Ltd., Tangguh project
management Co., Ltd.

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

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

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

Procedures for application of the equity method:

Procedures for application of the equity method:

Regarding affiliates accounted for by the equity method having a different closing date from the consolidated closing date, the Company used the financial
statements of each affiliate prepared as of their closing date. For certain affiliates, however, the Company used financial statements prepared forconsolidation purposes as of the consolidated closing
date.

Same as on the left

(Change in accounting policy)
Effective from the fiscal year ended March 31, 2011,
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.

20

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For the year ended
March 31, 2010
3. Closing dates for the fiscal year of consolidated
subsidiaries

For the year ended
March 31, 2011
3. Closing dates for the fiscal year of consolidated
subsidiaries

For the 35 companies for which the closing date differ from the consolidated closing date, including, but
not limited to, INPEX Sahul, Ltd. and INPEX Masela, Ltd., the Company uses the financial statements
for the year ended December 31. However, the necessary adjustments have been made to the financial
statements of those companies to reflect any significant transactions made between the Company’s closing date and those of the consolidated subsidiaries.
For the 10 companies including, but not limited, Japan Oil Development, Co., Ltd., Teikoku Oil D.R.
Congo, Co., Ltd., INPEX Southwest Caspian Sea,
Ltd., and INPEX North Caspian Sea, Ltd., we use financial statements for the year ended the consolidated closing date even though their closing date is
December 31.

For the 39 companies for which the closing date differ from the consolidated closing date, including, but
not limited to, INPEX Sahul, Ltd. and INPEX Masela, Ltd., the Company uses the financial statements
for the year ended December 31. However, the necessary adjustments have been made to the financial
statements of those companies to reflect any significant transactions made between the Company’s closing date and those of the consolidated subsidiaries.
For the 8 companies including, but not limited, JapanOil Development, Co., Ltd., Teikoku Oil D.R. Congo,
Co., Ltd., INPEX Southwest Caspian Sea, Ltd., and
INPEX North Caspian Sea, Ltd., we use financial
statements for the year ended the consolidated closing
date even though their closing date is December 31.

(Additional information)
Teiseki Real Estate Co., Ltd. has changed the closing
date from December 31 to March 31, since this fiscal
year.
Accordingly, the consolidated operating results forthe year ended March 31, 2010 included operating
results for 15 months from January 1, 2009 to March
31, 2010.
The effect of this change does not have a significant
impact on the consolidated financial statements.

4. Accounting policies
1) Valuation method for significant assets(a) Securities
Other securities
With a determinable market value

4. Accounting policies
1) Valuation method for significant assets(a) Securities
Other securities
With a determinable market value

Other securities with a determinable market
value are stated at fair value with any changes
in unrealized holding gain or loss, net of theapplicable income taxes, included directly in net
assets. Cost of securities sold is determined by
the moving-average method.
Without a determinable market value

Same as on the left

Without a determinable market value

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

21

Same as on the left

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For the year ended
March 31, 2010

印刷日時:11/05/11 13:25

For the year ended
March 31, 2011(b) Inventories
Overseas inventories
Carried mainly at cost, determined by the average cost method (balance sheet value is carriedat the lower of cost or market)(b) Inventories
Overseas inventories
Same as on the left

Domestic inventories
Carried mainly at cost, determined by the moving-average method (balance sheet value is carried at the lower of cost or market)

Domestic inventories
Same as on the left

2) Depreciation method of significant depreciable
assets(a) Tangible fixed assets (except leased assets)
Depreciation of mining facilities is mainly computed by the unit-of-production method. For othertangible fixed assets, straight-line method of depreciation is applied.
Useful lives of significant fixed assets are as follows:
Buildings and structures: 2-60 years
Wells: 3 years
Machinery, equipment and vehicles: 2-22 years2) Depreciation method of significant depreciable
assets(a) Tangible fixed assets (except leased assets)
Same as on the left(b) Intangible assets (except leased assets)
Exploration and development rights
Exploration and development rights at the exploration stage are fully amortized in the consolidated
fiscal year. Such rights which are at the production
stage are amortized by the unit-of-production method.
Mining rights
Mining rights are mainly amortized by the unit-ofproduction method.
Other
Other intangible assets are mainly amortized by thestraight-line method.
Software for internal use is being amortized over
five years.

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

(c) Leased assets
Leased assets for financing lease transactions
whose ownership are not to be transferred:
Same as on the left

22

Mining rights
Same as on the left
Other
Same as on the left

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印刷日時:11/05/11 13:25

For the year ended
March 31, 2010
3) Basis for significant allowances(a) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at an
amount determined based on the historical experience of bad debt with respect to ordinary receivables, plus an estimate of uncollectible amounts
determined by reference to specific doubtful receivables from customers which are experiencing
financial difficulties.

For the year ended
March 31, 2011
3) Basis for significant allowances(a) Allowance for doubtful accounts
Same as on the left(b) Allowance for recoverable accounts under production sharing
Allowance for recoverable accounts under production sharing is provided for probable losses on
specific investments made under production sharing contracts.

(b) Allowance for recoverable accounts under production sharing
Same as on the left(c) Allowance for investments in exploration
Allowance for investments in exploration is provided for future potential losses on investments in
exploration companies at an estimated amountbased on the net assets of the investees.

(c) Allowance for investments in exploration
Same as on the left(d) Provision for exploration projects
Provision for exploration projects is provided for
future expenditures of consolidated subsidiaries at
exploration stage based on schedule of investments in exploration.

(d) Provision for exploration projects
Same as on the left(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at expected payment amount for the year ended March
31, 2010.

(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at expected payment amount for the year ended March
31, 2011.

(f) Accrued retirement benefits to employees
Accrued retirement benefits to employees areprovided at the amount calculated based on the
expected retirement benefit obligation and the estimated value of pension plan assets at the end of
this period. Because certain subsidiaries are classified as small enterprises, we employ a simplified method (at the amount which would be
required to be paid if all active employees voluntarily terminated their employment as of the balance sheet date) for the calculation of theretirement benefit obligation of the subsidiaries.
Actuarial gains and losses are charged or credited
to income as incurred.

(f) Accrued retirement benefits to employees
Same as on the left

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For the year ended
March 31, 2010(g) Liabilities for site restoration and decommissioning costs
Liabilities for site restoration and decommissioning costs are provided for expected future costs
for site restoration and decommissioning.

印刷日時:11/05/11 13:25

For the year ended
March 31, 2011(h) Liabilities for losses on development activities
Liabilities for losses on development activities areprovided for provable losses on oil and natural
gas development activities individually estimatedfor each project.
(i) Accrued special repair and maintenanceAccrued special repair and maintenance are provided for planned major repair and maintenanceactivities on tanks in certain subsidiaries at theamount being accumulated through the next activity.

(g) Accrued special repair and maintenanceSame as on the left

4) Translation of consolidated subsidiaries’ significant assets and liabilities denominated in foreign
currencies into yen in preparation of the consolidated financial statements
Monetary assets and liabilities denominated inforeign currencies are translated into yen at theexchange rates prevailing at the balance sheet
date. The resulting exchange gain or loss is credited or charged to income.

4) Translation of consolidated subsidiaries’ significant assets and liabilities denominated in foreign
currencies into yen in preparation of the consolidated financial statements
Same as on the left

The revenue and expense accounts of theoverseas subsidiaries are translated into yen at
the average rates of exchange during the period. The balance sheet accounts are translated
into yen at the rates of exchange in effect atthe balance sheet date. Translation differences
are presented as a component of translation
adjustments and minority interests.
5) Accounting for major hedge transactions(a) Hedge accounting
Simplified accounting method is applied tointerest rate swaps.
(b) Hedging instruments and hedged items
Hedge instruments: Interest rate swap transactions
Hedged items: Interest payments on borrowings(c) Hedging policy
The nominal amount of the derivative transaction is limited to within the scope of actual demand, and the Company does notengage in speculative derivative transactions.
(d) Hedge effectiveness assessment method
Since simplified accounting method is applied, the Company does not perform hedge
effectiveness assessment.

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

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For the year ended
March 31, 2010

印刷日時:11/05/11 13:25

For the year ended
March 31, 2011
6) Amortization of Goodwill
Goodwill is amortized using a straight-line method over 20 years.
7) Scope of cash and cash equivalents in consolidated
statement of cash flow
Cash (cash and cash equivalents) in the consolidated statement of cash flow consisted of cash on
hand, cash in banks which can be withdrawn on
demand, and short-term investments with a maturity of three months or less when purchased
which can easily be converted to cash and are
subject to little risk of change in value.

6) Other items important to the preparation of the consolidated financial statements(a) Consumption tax
Transactions subject to the consumption
tax are recorded at amounts exclusive of
the consumption tax.
(b) Recoverable accounts under production sharing
Cash investments made by the Company
during exploration, development and production phases under a production sharing
contract and a service contract (buybackarrangement) are recorded as “Recoverable accounts under production sharing” solong as they are recoverable under theterms of the relevant contract. When the
Company receives the natural gas andcrude oil in accordance with the contract,
an amount corresponding to the purchasecosts of the products (i.e., a cost recovery
portion of the investments) is released
from this account.
5. Valuation of assets and liabilities of consolidated
subsidiaries
The assets and liabilities of consolidated subsidiaries are valued at their fair values. However,those whose valuation difference is not material
are valued at their carrying amounts.
6. Amortization of Goodwill
Goodwill is amortized using a straight-line method over 20 years.
7. Scope of cash and cash equivalents in consolidated
statement of cash flow
Cash (cash and cash equivalents) in the consolidated statement of cash flow consisted of cashon hand, cash in banks which can be withdrawn
on demand, and short-term investments with amaturity of three months or less when purchased
which can easily be converted to cash and are
subject to little risk of change in value.

258) Other items important to the preparation of the consolidated financial statements(a) Consumption tax
Same as on the left(b) Recoverable accounts under production sharing
Cash investments made by the Company
during exploration, development and production phases under a production sharing
contract are recorded as “Recoverable accounts under production sharing” so longas they are recoverable under the terms of
the relevant contract. When the Company
receives the natural gas and crude oil inaccordance with the contract, an amountcorresponding to the purchase costs of the
products (i.e., a cost recovery portion of
the investments) is released from this account.

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印刷日時:11/05/11 13:25(7) Changes in the Basis of Presenting Consolidated Financial Statements
For the year ended
March 31, 2010

For the year ended
March 31, 2011
(Accounting Standard for Asset Retirement Obligations)
Effective from the fiscal year ended March 31,
2011, the Company adopted the “Accounting Standard for Asset Retirement Obligations” (ASBJ
Statement No. 18 issued on March 31, 2008) andthe “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 forsite restoration and decommissioning.
As a result, operating income decreased by ¥141
million and ordinary income and income before income taxes and minority interests decreased by¥1,046 million, respectively.

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印刷日時:11/05/11 13:25(Changes in the Presentation)
For the year ended
March 31, 2010
(Consolidated Statements of Income)“Loss on valuation of investment securities”, previously presented separately in other expenses, isincluded in “Other” since its amount is below 10%of total other expenses. The amount of “Loss on
valuation of investment securities” for the year
ended March 31, 2010 is ¥14 million.

For the year ended
March 31, 2011
(Consolidated Statements of Income)“Provision for investments in exploration”, previously presented separately in other expenses, isincluded in “Other” since its amount is below 10%of total other expenses. The amount of “Provision
for investments in exploration” for the year ended
March 31, 2011 is ¥499 million.

“Provision for investments in exploration”, previously included in “Other” in other expenses, isseparately presented in other expenses since its
amount exceeded 10% of total other expenses. The
amount of “Provision for investments in exploration” for the year ended March 31, 2009 is ¥3,631
million.

“Gain on change in equity”, previously included in“Other” in other income, is separately presented inother income since its amount exceeded 10% of
total other income. The amount of “Gain on change
in equity” for the year ended March 31, 2010 is¥1,284 million.
“Provision of allowance for doubtful accounts”,
previously included in “Other” in other expenses, isseparately presented in other expenses since its
amount exceeded 10% of total other expenses. The
amount of “Provision of allowance for doubtful
accounts” for the year ended March 31,2010 is ¥91
million.
Effective from the fiscal year ended March 31
2011, based on the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement
No. 22 of December 26, 2008), the Company applies the “Cabinet Office Ordinance Partially Revising Regulation on Terminology, Forms andPreparation of Financial Statements” (Cabinet Office Ordinance No.5, March 24, 2009). As a result,“Income before minority interests” is included in
the consolidated financial statements for the year
ended March 31, 2011.

(Consolidated Cash Flows)“Loss (gain) on valuation of investment securities ”, previously presented separately in cash flows
from operating activities, is included in “Other”
due to decrease in its materiality. The amount of“Loss (gain) on valuation of investment securities”
for the year ended March 31, 2010 is ¥14 million.

(Consolidated Cash Flows)“Provision for allowance for doubtful accounts ”,
previously included in “Other provisions” in cash
flows from operating activities, is separately presented due to increase in its materiality. The
amount of “Provision for allowance for doubtful
accounts” for the year ended March 31, 2010 is¥106 million.

(Additional information)
Effective from this fiscal year, the Company applies “Accounting Standard for Presentation of Comprehensive Income”(ASBJ Statement No.25 June 30, 2010).
However, the amount of “Accumulated other comprehensive income” and “Total accumulated other comprehensive income” in the consolidated fiscal year are shown as “Valuation, translation adjustments and others” and “Total valuation,translation adjustments and others”.

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印刷日時:11/05/11 13:26(8) Notes to Consolidated Financial Statements(Consolidated Balance Sheets)
As of March 31, 2010

As of March 31, 2011

*1 Major accounts included in inventories are as follows:*1 Major accounts included in inventories are as follows:

Millions of yen
3,923
127
8,271

Millions of yen
Merchandise and finished goods
4,952Work in process238
Raw materials and supplies
6,946*2 Accumulated depreciation
Accumulated depreciation of tangible fixed assets is¥505,499 million.

*2 Accumulated depreciation
Accumulated depreciation of tangible fixed assets is¥530,777 million.

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

Merchandise and finished goods
Work in process
Raw materials and supplies: ¥36,713 million
Investment securities (equities)
Other (investments and other assets) : ¥128 million: ¥ 38,881 million
Investment securities (equities)
Other (investments and other assets) : ¥ 121 million*4 Assets provided as collateral and collateral-backed debt
are as follows:(Collateralized Assets)
Millions of yen*4 Assets provided as collateral and collateral-backed debt
are as follows:(Collateralized Assets)
Millions of yen

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

2,239
3,444

(2,239)(3,444)9,512(9,512)

660

(660)

0

(0)

9,385

(―)

246

(―)

25,487(15,856)

2,130
5,496
6,153

(2,114)(5,001)(6,069)16(―)

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

2,140
4,774

(2,140)(4,774)

9,048(9,048)

660

(660)

0

(0)

8,236

(―)

238

(―)

25,099(16,623)

2,130
3,992
4,022

(2,114)(3,691)(3,955)

16

(―)

Total
13,797(13,184)
Amounts in parenthesis () above represent foundation
collateral and liabilities.
In addition, investment securities of ¥5,571 million arepledged as collateral for the BTC pipeline project
financing.

Total
10,162(9,760)
Amounts in parenthesis () above represent foundation
collateral and liabilities.
In addition, investment securities of ¥4,928 million arepledged as collateral for the BTC pipeline project
financing.

*5 Accumulated advanced depreciation deducted fromacquisition costs of fixed assets related to contribution
and others was ¥1,374 million for building andstructures, ¥276 million for machinery, equipment andvehicles, and ¥1 million for other (intangible assets).

*5 Accumulated advanced depreciation deducted fromacquisition costs of fixed assets related to contribution
and others was ¥1,374 million for building andstructures, ¥259 million for machinery, equipment andvehicles, and ¥1 million for other (intangible assets).

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印刷日時:11/05/11 13:26

As of March 31, 2010

As of March 31, 2011

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

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

Millions of yen

Millions of yen
Tangguh Trustee*
15,536
Fujian Tranche *5,507
Sakhalin Oil and Gas
4,051
Development Co., Ltd.
INPEX Offshore North Campos,
2,613
Ltd.
Sakata Natural Gas Co., Ltd.
106
Employees (housing loans)
254
Total
28,069Tangguh Trustee*
17,971
Fujian Tranche *6,402
INPEX Offshore North Campos,
3,290
Ltd.
Sakhalin Oil and Gas
3,213
Development Co., Ltd.
Sakata Natural Gas Co., Ltd.
305
Employees (housing loans)
319
Total
31,502*Debt for investment funds of Tangguh LNG projectthrough MI Berau B. V. and MI Berau Japan Ltd.

*Debt for investment funds of Tangguh LNG projectthrough MI Berau B. V. and MI Berau Japan Ltd.

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印刷日時:11/05/11 13:26(Consolidated Statements of Income)For the year ended March 31, 2010

For the year ended March 31, 2011

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

Millions of yen

Millions of yen

Personnel expenses
13,645(Including provision for accrued
358)
retirement benefits to employees(Including provision for accrued
140)
bonuses to officers
Taxes
4,485
Freight expenses
8,733
Depreciation expenses
20,011
Amortization of goodwill
6,759
*2.

Personnel expenses
14,518(Including provision for accrued
712)
retirement benefits to employees(Including provision for accrued
144)
bonuses to officers
Taxes
5,928
Freight expenses
6,666
Depreciation expenses
22,250
Amortization of goodwill
6,760

Research and development expenses included in generaland administrative expenses: ¥470 million*2. Research and development expenses included in generaland administrative expenses: ¥ 449 million(Consolidated Statements of Comprehensive Income)For the year ended March 31, 2011
*1

Comprehensive income for the year ended March 31, 2011
Comprehensive income attributable to INPEX shareholders:¥131,675 million

Comprehensive income attributable to minority interests:¥11,431 million

Total

*2

¥143,106 million

Other comprehensive income for the year ended March 31, 2010
Unrealized holding gain on securities¥19,170 million

Translation adjustments¥6,806 million

Share of other comprehensive income of associates
accounted for using equity method¥227 million

Total¥26,204 million30

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印刷日時:11/05/11 13:26(Consolidated Statements of Changes in Net Assets)
For the year ended March 31, 2010
1. Type and number of shares issued and outstanding and treasury stock
Balance as ofMarch 31, 2009

Increase(Shares)
Balance as ofMarch 31, 2010

Decrease

Number of shares
Common stock

2,358,409――

2,358,409

Special class share

1

―

―

1

Total

2,358,410――

2,358,410

Common stock

4,916

―

―

4,916

Total

4,916

―

―

4,916

Cash dividends paid
(Millions of yen)

Dividends
per share(Yen)

Entitlement date

Effective date

9,413

4,000

March 31, 2009

June 26, 2009

0

4,000

March 31, 2009

June 26, 2009

5,883

2,500

September 30, 2009

December 1, 2009

0

2,500

September 30, 2009

December 1, 2009

Treasury stock

2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders
June 25, 2009
Board of directors’
meetingNovember 4, 2009

Type ofshare
Commonstock
Specialclass share
Commonstock
Specialclass share(2) Dividends, of which the entitlement date was in the year ended March 31, 2010, and whose effective date will
be in the next fiscal year
Cash dividends
Dividends
Type of
Source of
Resolution
paid
per share
Entitlement date Effective dateshare
dividends(Millions of yen)
(Yen)
CommonRetained
Ordinary general
7,060
3,000 March 31, 2010
June 24, 2010stock
earnings
meeting ofshareholders
SpecialRetained
03,000 March 31, 2010
June 24, 2010
June 23, 2010class shareearnings31

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印刷日時:11/05/11 13:26

For the year ended March 31, 2011
1. Type and number of shares issued and outstanding and treasury stock
Balance as ofMarch 31, 2010

Increase(Shares)
Balance as ofMarch 31, 2011

Decrease

Number of shares
Common stock

2,358,409

1,297,400―

3,655,809

Special class share

1

―

―

1

Total

2,358,410

1,297,400―

3,655,810

Common stock

4,916

―

―

4,916

Total

4,916

―

―

4,916

Treasury stock

Note: An increase in common stock of 1,297,400 shares is due to offering new shares by 1,216,000 shares and thethird-party allotment by 81,400 shares, respectively.
2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders
June 23, 2010
Board of directors’
meetingNovember 4, 2010

Type ofshare
Commonstock
Specialclass share
Commonstock
Specialclass share

Cash dividends paid
(Millions of yen)

Dividends
per share
(Yen)

7,060

3,000

March 31, 2010

June 24, 2010

0

3,000

March 31, 2010

June 24, 2010

10,9523,000

September 30, 2010

December 1, 2010

0

3,000

September 30, 2010

December 1, 2010

Entitlement date

Effective date(2) Dividends, of which the entitlement date was in the year ended March 31, 2011, and whose effective date will
be in the next fiscal year
Cash dividends
Dividends
Type of
Source of
Resolution
paid
per share
Entitlement date Effective dateshare
dividends(Millions of yen)
(Yen)
CommonRetained
Ordinary general
10,9523,000 March 31, 2011
June 29, 2011stock
earnings
meeting ofshareholders
SpecialRetained
03,000 March 31, 2011
June 29, 2011
June 28, 2011class shareearnings32

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印刷日時:11/05/11 13:26(Consolidated Statements of Cash Flows)

For the year ended
March 31, 2010

For the year ended
March 31, 2011

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

119,809(3,786)
68,477
19,801

period are reconciled to the account reported in
the consolidated balance sheet as follows:
Millions of yen
112,395
Cash and deposits
Time deposits for more than(266)
three months and others
Marketable securities
50,991(commercial paper)
Marketable securities
7,804(MMF and others)

9,742

Marketable securities(certificate of deposit)

11,1002,350

Cash and cash equivalents

182,025

216,39533

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印刷日時:11/05/11 13:31(Segment Information)
1. Business segment information
For the year ended March 31, 2010
Segment information by business has been omitted because the crude oil and natural gas business accounts for more than
90% of total sales, operating income and asset.

2. Geographical segment information
For the year ended March 31, 2010 (April 1, 2009 through March 31, 2010)(Millions of yen)Japan

Eurasia
Asia &(Europe &Oceania
NIS)

MiddleEast &
AfricaAmericas

Total

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

93,958352,383

73,574

303,818

16,692

840,427―

840,427

―

―

―

―

―

―

―

―

Total

93,958352,383

73,574

303,818

16,692

840,427―

840,427

Operating expenses

61,404

161,31333,80598,246

15,663

370,433

8,325

378,759

Operating income

32,554

191,069

39,769205,571

1,028

469,993(8,325)

461,667

240,879

451,167

446,848

229,842

85,241

1,453,980

559,797

2,013,778

II Assets
Notes:

Eliminations
Consolidated
and other

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
3. Unallocated operating expenses included in “Eliminations and other” of ¥8,766 million under the operating expenses are mainly amortization of goodwill and general administrative expenses.
4. Of the figure for assets, ¥562,927 million included in “Eliminations and other” are mainly goodwill, cash and deposit, marketable securities and investment securities concerned with the administrative divisions.

3. Overseas sales
For the year ended March 31, 2010
Asia & Oceania
I.

Overseas sales (Millions of yen)271,231

Other

Total
53,424

II. Consolidated sales (Millions of yen)

840,427

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

324,656

32.3

6.3

38.6

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

34

更新日時:2011/05/11 10:17:00

ファイル名:④-3H23.3cセグメント情報等【済】.doc

印刷日時:11/05/11 13:31(Segment information)
For the year ended March 31, 2011 (April 1, 2010 through March 31, 2011)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. Methods of calculating of sales and income (loss), identifiable assets, and other items by reportable segment
Accounting method for reportable segment is the substantially same as presentations on “Basis of Presenting Consolidated Financial Statements.”

3.

Information on sales and income (loss), identifiable assets, and other items by reportable segment

For the year ended March 31, 2010 (April 1, 2009 through March 31, 2010)(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

93,958352,383

73,574

303,818

16,692

840,427―

840,427

―

―

―

―

―

―

―

―

93,958352,383

73,574

303,818

16,692

840,427―

840,427

Segment income

32,554

191,069

39,769205,571

1,028

469,993(8,325)

461,667

Segment assets

240,879

451,167

446,848

229,842

85,241

1,453,980

559,797

2,013,778

Total

*1

*2

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

Other items
Depreciation and amor18,225
3,600
7,909
5,535
3,971
39,241
1,112
40,354
tization
Amortization of good(1)
(192)
(193)
6,952
6,759
―
―
―
will
Investment to affiliates
21,7686,990
1,340
30,09930,099―――accounted for by theequity method
Increase of tangible
fixed assets and in52,072
29,208
200
5,904
4,955
92,341461
92,803
tangible assets
Note: 1. (1) Adjustments of segment income of ¥(8,325) million include elimination of intersegment transactions of ¥440 million
and corporate expenses of ¥(8,766) million. Corporate expenses are mainly amortization of goodwill not attributable
to a reportable segment and general administrative expenses.
(2) Adjustments of segment assets of ¥559,797 million include elimination of intersegment transactions of ¥(3,129) million and corporate assets of ¥562,927 million. Corporate assets are mainly goodwill, cash and deposit, marketable securities and investment securities concerned with the administrative divisions.
(3) Adjustments of depreciation and amortization of ¥1,112 million consist mainly of depreciation of corporate assets.
(4) Adjustments of amortization of goodwill of ¥ 6,952 million consist of amortization of goodwill not attributable to areportable segment.
(5) Adjustments of increase of tangible fixed assets and intangible assets of ¥461 million consist mainly of capital expenditure to corporate assets.
2. Segment income was reconciled with consolidated operating income.

35

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ファイル名:④-3H23.3cセグメント情報等【済】.doc

印刷日時:11/05/11 13:31

For the year ended March 31, 2011 (April 1, 2010 through March 31, 2011)(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

104,524

406,827

68,318350,735

12,673

943,080―

943,080

―

―

―

―

―

―

―

―

Total

104,524

406,827

68,318350,735

12,673

943,080―

943,080

Segment income (loss)

25,959235,81436,460243,112(3,035)538,311(8,569)529,742

Segment assets

240,238

432,323

503,471

245,865

68,022

1,489,921

1,190,458

2,680,379

Total

*1

*2

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

Other items
Depreciation and amor18,456
17,468
9,013
5,111
2,914
52,964
1,280
54,245tization
Amortization of good(0)
(192)
(192)
6,952
6,760
―
―
―
will
Investment to affiliates
20,066
7,083
5,120
32,27032,270―――accounted for by theequity method
Increase of tangible
fixed assets and in25,696
45,97328,361
10,838
2,929
113,799565
114,365
tangible assets
Note: 1. (1) Adjustments of segment income of ¥(8,569) million include elimination of intersegment transactions of ¥232 million
and corporate expenses of ¥(8,801) million. Corporate expenses are mainly amortization of goodwill not attributable
to a reportable segment and general administrative expenses.
(2) Adjustments of segment assets of ¥1,190,458 million include elimination of intersegment transactions of ¥(2,935)
million and corporate assets of ¥1,193,394 million. Corporate assets are mainly goodwill, cash and deposit, marketable securities and investment securities concerned with the administrative divisions.
(3) Adjustments of depreciation and amortization of ¥1,280 million consist mainly of depreciation of corporate assets.
(4) Adjustments of amortization of goodwill of ¥ 6,952 million consist of amortization of goodwill not attributable to areportable segment.
(5) Adjustments of increase of tangible fixed assets and intangible assets of ¥565 million consist mainly of capital expenditure to corporate assets.
2. Segment income was reconciled with consolidated operating income.

36

更新日時:2011/05/11 10:17:00

ファイル名:④-3H23.3cセグメント情報等【済】.doc

印刷日時:11/05/11 13:31(Relative information)
For the year ended March 31, 2011 (April 1, 2010 through March 31, 2011)
1. Products and service information(Millions of yen)
Crude oil
557,910

Sales to third parties

Natural gas (excluding LPG)
334,650

LPG

Other

21,597

Total

28,921

943,080

2. Geographical information(1) Sales(Millions of yen)Japan

Asia & Oceania
573,131

Other

346,717

Total
23,231

943,080

Note: Sales by geographical area is determined based upon the final destination and customer.

(2) Tangible fixed assets(Millions of yen)Japan

Australia
211,087

Other
96,500Total
72,273379,861

3. Information by major customer(Millions of yen)
Customer

Sales

PERTAMINA

Relative reportable segment
254,542

Asia & Oceania(Information on impairment loss from fixed assets by reportable segment)
For the year ended March 31, 2011 (April 1, 2010 through March 31, 2011)
Disclosure has been omitted because it does not have significant impact on the consolidated financial statements.

(Information on amortization of goodwill and unamortized balance by reportable segment)
For the year ended March 31, 2011 (April 1, 2010 through March 31, 2011)(Millions of yen)
Reportable segments
Japan

Asia &
Oceania

Eurasia(Europe & NIS)

Middle East
& Africa

Americas*1

Total

Eliminations
and other
*2

Total

Balance as of――――(2,931)(2,931)
104,294
101,362
March 31, 2011
Note: 1. This is the unamortized balance of negative goodwill acquired before April 1, 2010 and net amount of goodwill is statedon the balance sheet.
2. This is the unamortized balance of goodwill not attributable to a reportable segment.
3. Please refer to “Segment information” regarding to the amounts of amortization of goodwill.

37更新日時:2011/05/11 10:17:00

ファイル名:④-3H23.3cセグメント情報等【済】.doc

印刷日時:11/05/11 13:31(Information on negative goodwill by reportable segment)
For the year ended March 31, 2011 (April 1, 2010 through March 31, 2011)
None(Additional information)
Effective from the year ended March 31, 2011, the Company adopted the “Accounting Standard for Disclosures about Segmentsof 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 Related Information” (ASBJ Guidance No.20, issued on
March 21, 2008).

38ファイル名:(Financial Instruments)
For the year ended March 31, 2010
(Supplementary information)
Beginning from the year ended March 31, 2010, the Company adopted the Accounting Standard for Financial Instruments(ASBJ Statement No.10 issued on March 10, 2008) and the Guidance on Disclosures about Fair Value of Financial Instruments(ASBJ Guidance No.19 issued on March 10, 2008).
1. Status of financial instruments(1) Policy regarding financial instruments
The Company raises funds for oil and gas exploration, development and production, construction or expansion of domestic
pipelines and LNG receiving terminal primarily from cash flow on hand and from bank loans. Oil and gas development
projects are primarily funded from long-term loans that the Company has secured from the Japan Bank of International Cooperation and Japanese commercial banks. Japan Oil, Gas and Metals National Corporation have provided guarantees for the
principal on certain outstanding amounts of the Company’s long-term loans. The Development Bank of Japan and Japanesecommercial banks have been providing long-term loans for the construction or expansion of domestic pipelines and LNG receiving terminal. The Company generally borrows with variable interest rates, while some loans are with fixed interest ratedepending on the nature of each project. Regarding the financing policy, the Company manages funds mainly from cash on
hand and government bonds, which are considered of low-risk and high-liquidity. The Company does not engage in speculative derivative transactions to prevent risks hereinafter described below.
(2) Details of financial instruments, associated risk and risk management(Credit risks related to trade receivables)
Trade receivables ―accounts receivable-trade and accounts receivable-other ― are comprised mainly from sales of oil andnatural gas. Main trading partners are national oil companies, major oil companies and others. In line with criteria for trading
and credit exposure management, the Company properly analyzes the status of trading partners for early detection and reduction of default risks.
(Market price fluctuation risk related to securities)
For marketable securities and investment securities exposed to market price fluctuation risk, analysis of market values isregularly reported to the Management Committee. For stocks, the Company holds the shares of trading partners and others toestablish close and smooth relationship for the purpose of medium- to long-term stable business. Of these shares, the Company partially holds for the purpose of investment. As for bonds, the Company mainly holds government bonds with shortterm maturities to reduce market price fluctuation risk.
(Interest rate fluctuation risk related to short-term loans and long-term debt)
Loans are mainly for fund for oil and natural gas exploration projects and construction or expansion of domestic pipelinesand LNG receiving terminal and others. The borrowing period is determined considering financial prospects of the projectand useful lives of facilities. Loans with variable interest rates are exposed to interest rate fluctuation risk, however, theCompany leverages in line with the above policy. Loans with fixed interest rate include fixed interest expenses under special
treatment of interest rate swaps.
(Exchange rates fluctuation risk related to assets and liabilities in foreign currencies)
As the most of the Company’s business consists of overseas business, the Company is exposed to exchange fluctuation risk
due to a large portion of monetary assets and liabilities held in foreign currencies such as cash and deposits, accounts receivables and loans required in overseas projects. As a result of fiscal year-end conversion, yen appreciation causes foreign exchange loss on assets and foreign exchange gain on liabilities while yen depreciation causes foreign exchange gain on assets
and foreign exchange loss on liabilities. For this reason, foreign exchange gain and loss are offset and maintains the position
between assets and liabilities in foreign currencies. At present, the Company is in the position of incurring foreign exchange
loss when foreign exchange rate proceeds to yen appreciation. The Company timely converts to the yen to avoid excess holding of foreign currency deposits on hand as well as engages in hedge transactions, based on the Company policy, partly using
foreign currency forward exchange contracts as necessary for expected foreign currency trading.
(Management of derivative transactions)
For the above derivative transactions such as interest rate swap transactions and forward exchange contracts, the Company
follows derivative transactions management outline. Further, the Company only transacts with financial institutions with highcredit ratings to reduce credit risks for the use of derivatives.
(Management of the liquidity risk related to financing)
The finance unit controls cash management based on monthly financing plan prepared by each project division and securesufficient liquidity on hand to be prepared for liquidity risks.
(3) Supplementary explanation of items related to the market value of financial instruments
For nominal amounts and others regarding derivative transactions on “Derivatives Transactions”, its amounts do not indicate
market risks related to derivative transactions.

39

ファイル名:2.

Fair value of financial instruments
Carrying value on the consolidated balance sheet as of March 31, 2010, fair value and their unrealized loss are as shown
below. Items for which is extremely difficult to determine market value are not included in the following table (Please refer to Note 2).
(Millions of yen)
(1) Cash and deposits(2) Accounts receivable-trade(3) Marketable securities and investment
securities
Total assets(1) Short-term loans(2) Long-term debt
Total liabilities
Derivatives

Carrying value
119,80988,364
544,681

Fair value
119,80988,364
544,681752,855
4,872
235,510240,383－

752,855
4,935
237,023
241,958－

Unrealized loss
－
－
－
－
62
1,512
1,575
－

Note 1: Methods of calculating of the fair value of financial instruments
Assets(1) Cash and deposits, and (2) Accounts receivable-trade
Since these items are settled in a short period of time and their fair values are almost the same as their carrying values, therelevant carrying values are used.
(3) Marketable securities and investment securities
The fair value of shares are determined by the market prices of exchanges, and the fair value for bonds are determined bymarket prices of exchanges or the prices presented by financial institutions. For further information on investment securitiesof each holding purpose, please refer to “Securities” section of the notes to financial statements.
Liabilities(1) Short-term loans
The fair value of current portion of long-term debt included in short-term loans, is calculated by the same method as (2)Long-term debt. For the other short-term loans, the relevant carrying value is used since these items are settled in a short periods of time and its market value is almost the same as the carrying value.
(2)Long-term debt
The fair value of long-term debt is calculated by applying a discount rate to the total of principal and interest. The discountrate is based on the assumed interest rate if a similar new loan is entered into.
Derivatives
Please refer to “Derivative transactions” section of notes to financial statements.
Note 2: Financial instruments for which it is extremely difficult to determine market value(Millions of yen)
Carrying value
Unlisted securities
30,623Preferred securities
5,000
Stocks of subsidiaries and affiliates
36,713
These financial instruments are assumed to have no market value and require excessive costs to estimate future cash flows.
Accordingly, these financial instruments are not included in “Assets (3) Marketable securities and investment securities” as
it is to be financial instruments for which are extremely difficult to determine fair value. For shares of exploration companies among unlisted securities and stocks of subsidiaries and affiliates, the allowance is provided for investments in exploration at an estimated amount based on the financial position of the investees.

40

ファイル名:

Note 3: Redemption schedule for monetary assets securities with maturity dates subsequent to March 31, 2010 is as follows(Millions of yen)More than 1 year
More than 5More than 10
1 year or lessbut less than 5
years but less
years
years
than 10 years
Cash and deposits
119,809－－－
Accounts receivable-trade
88,364－－－Marketable securities and investment
securities
Other securities:
Public bonds
122,500
210,500
37,0006,500
Other bonds
77,804
45
－
－
Other
2,350
－
－
－
Total
410,828
210,545
37,0006,500
Note 4: Maturities for long-term loans payable and leased liabilities subsequent to March 31, 2010 is as follows(Millions of yen)
1 year or lessLong-term debt
Lease obligations
Total

4,712
88
4,801

41

More than 1 year
but less than 5
years
15,894
128
16,022More than 5
years but lessthan 10 years
139,7791
139,781More than 10
years
79,836－
79,836

ファイル名:For the year ended March 31, 2011
1. Status of financial instruments(1) Policy regarding financial instruments
The Company raises funds for oil and gas exploration, development and production, construction or expansion of domestic
pipelines and LNG receiving terminal primarily from cash flow on hand and from bank loans. Oil and gas development
projects are primarily funded from long-term loans that the Company has secured from the Japan Bank of International Cooperation and Japanese commercial banks. Japan Oil, Gas and Metals National Corporation have provided guarantees for the
principal on certain outstanding amounts of the Company’s long-term loans. The Development Bank of Japan and Japanesecommercial banks have been providing long-term loans for the construction or expansion of domestic pipelines and LNG receiving terminal. The Company generally borrows with variable interest rates, while some loans are with fixed interest ratedepending on the nature of each project. Regarding the financing policy, the Company manages funds mainly from cash on
hand and government bonds, which are considered of low-risk and high-liquidity. The Company does not engage in speculative derivative transactions to prevent risks hereinafter described below.
(2) Details of financial instruments, associated risk and risk management(Credit risks related to trade receivables)
Trade receivables ―accounts receivable-trade and accounts receivable-other ― are comprised mainly from sales of oil andnatural gas. Main trading partners are national oil companies, major oil companies and others. In line with criteria for trading
and credit exposure management, the Company properly analyzes the status of trading partners for early detection and reduction of default risks.
(Market price fluctuation risk related to securities)
For marketable securities and investment securities exposed to market price fluctuation risk, analysis of market values isregularly reported to the Management Committee. For stocks, the Company holds the shares of trading partners and others toestablish close and smooth relationship for the purpose of medium- to long-term stable business. Of these shares, the Company partially holds for the purpose of investment. As for bonds, the Company mainly holds government bonds with shortterm maturities to reduce market price fluctuation risk.
(Interest rate fluctuation risk related to short-term loans and long-term debt)
Loans are mainly for fund for oil and natural gas exploration projects and construction or expansion of domestic pipelinesand LNG receiving terminal and others. The borrowing period is determined considering financial prospects of the projectand useful lives of facilities. Loans with variable interest rates are exposed to interest rate fluctuation risk, however, theCompany leverages in line with the above policy. Loans with fixed interest rate include fixed interest expenses under special
treatment of interest rate swaps.
(Exchange rates fluctuation risk related to assets and liabilities in foreign currencies)
As the most of the Company’s business consists of overseas business, the Company is exposed to exchange fluctuation risk
due to a large portion of monetary assets and liabilities held in foreign currencies such as cash and deposits, accounts receivables and loans required in overseas projects. As a result of fiscal year-end conversion, yen appreciation causes foreign exchange loss on assets and foreign exchange gain on liabilities while yen depreciation causes foreign exchange gain on assets
and foreign exchange loss on liabilities. For this reason, foreign exchange gain and loss are offset and maintains the position
between assets and liabilities in foreign currencies. At present, the Company is in the position of incurring foreign exchange
loss when foreign exchange rate proceeds to yen appreciation. The Company timely converts to the yen to avoid excess holding of foreign currency deposits on hand as well as engages in hedge transactions, based on the Company policy, partly using
foreign currency forward exchange contracts as necessary for expected foreign currency trading.
(Management of derivative transactions)
For the above derivative transactions such as interest rate swap transactions and forward exchange contracts, the Company
follows derivative transactions management outline. Further, the Company only transacts with financial institutions with highcredit ratings to reduce credit risks for the use of derivatives.
(Management of the liquidity risk related to financing)
The finance unit controls cash management based on monthly financing plan prepared by each project division and securesufficient liquidity on hand to be prepared for liquidity risks.
(3) Supplementary explanation of items related to the market value of financial instruments
For nominal amounts and others regarding derivative transactions on “Derivatives Transactions”, its amounts do not indicate
market risks related to derivative transactions.
2.

Fair value of financial instruments
Carrying value on the consolidated balance sheet as of March 31, 2011, fair value and their unrealized loss are as shown
below. Items for which is extremely difficult to determine market value are not included in the following table (Please refer to Note 2).

42ファイル名:(Millions of yen)
(1) Cash and deposits(2) Accounts receivable-trade(3) Marketable securities and investment
securities
Total assets(1) Short-term loans(2) Long-term debt
Total liabilities
Derivatives

Carrying value
112,395
95,391
1,111,005

Fair value
112,395
95,391
1,111,005

1,318,792
4,441
268,706
273,147－

1,318,792
4,483
270,572
275,056－

Unrealized loss
－
－
－
－
42
1,865
1,908
－

Note 1: Methods of calculating of the fair value of financial instruments
Assets(1) Cash and deposits, and (2) Accounts receivable-trade
Since these items are settled in a short period of time and their fair values are almost the same as their carrying values, therelevant carrying values are used.
(3) Marketable securities and investment securities
The fair value of shares are determined by the market prices of exchanges, and the fair value for bonds are determined bymarket prices of exchanges or the prices presented by financial institutions. For further information on investment securitiesof each holding purpose, please refer to “Securities” section of the notes to financial statements.
Liabilities(1) Short-term loans
The fair value of current portion of long-term debt included in short-term loans, is calculated by the same method as (2)Long-term debt. For the other short-term loans, the relevant carrying value is used since these items are settled in a short periods of time and its market value is almost the same as the carrying value.
(2)Long-term debt
The fair value of long-term debt is calculated by applying a discount rate to the total of principal and interest. The discountrate is based on the assumed interest rate if a similar new loan is entered into.
Derivatives
Please refer to “Derivative transactions” section of notes to financial statements.
Note 2: Financial instruments for which it is extremely difficult to determine market value(Millions of yen)
Carrying value
Unlisted securities
27,819Preferred securities
5,000
Stocks of subsidiaries and affiliates
38,881
These financial instruments are assumed to have no market value and require excessive costs to estimate future cash flows,
accordingly, these financial instruments are not included in “Assets (3) Marketable securities and investment securities”. For
shares of exploration companies among unlisted securities and stocks of subsidiaries and affiliates, the allowance is provided for investments in exploration at an estimated amount based on the financial position of the investees.

43ファイル名:

Note 3: Redemption schedule for monetary assets securities with maturity dates subsequent to March 31, 2011 is as follows(Millions of yen)More than 1 year
More than 5More than 10
1 year or lessbut less than 5
years but less
years
years
than 10 years
Cash and deposits
112,395－－－
Accounts receivable-trade95,391－－－Marketable securities and investment
securities
Other securities:
Public bonds
133,000
526,500
41,500－
Corporate bonds
3,500
33,500－－
Other bonds
51,00033,445－－
Other
11,100
198,145－－
Total
406,386
791,590
41,500－Note 4: Maturities for long-term loans payable and leased liabilities subsequent to March 31, 2011 is as follows(Millions of yen)
1 year or lessLong-term debt
Lease obligations
Total

4,281
62
4,344

44

More than 1 year
but less than 5
years
19,156
117
19,273More than 5
years but lessthan 10 years
136,5061
136,507

More than 10
years
113,044－
113,044

ファイル名:(Securities)
For the year ended March 31, 2010
1 Other securities as of March 31, 2010
Type of securities

Acquisition costs

Securities whose carrying value exceed their acquisition costs(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Securities whose acquisition costs exceed their carrying value(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Total(Millions of yen)
Unrealized gain
(loss)

Carrying value

28,825

43,77914,954

275,323―
18,562
6,732
329,443

276,952―
18,801
8,721
348,255

1,628
―
239
1,989
18,811

26,872

22,395(4,477)

104,506―
59,025
12,111
202,516
531,959

102,922―59,016
12,092
196,426
544,681(1,584)―(9)(18)(6,090)12,7212 Other securities sold during the year ended March 31, 2010
Type of securities(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other

Proceeds from sales―

107,500―
266,653
31,130Total
405,283
Note: Proceeds from sales include redemption and cancellation of bonds and others.

45―(Millions of yen)
Loss on sales
―

―
―
―
―
―

―
―
―
―
―

Gain on sales

ファイル名:For the year ended March 31, 2011
1 Other securities as of March 31, 2011
Type of securities

Acquisition costs

Securities whose carrying value exceed their acquisition costs(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Securities whose acquisition costs exceed their carrying value(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Total

Carrying value(Millions of yen)
Unrealized gain
(loss)

42,52149,876

7,355

336,349
8,500
―
6,732
394,102336,983
8,503
―
7,693
403,057

633
3
―
961
8,954

10,535

8,663△1,871

374,128
28,50884,863
217,236715,272
1,109,374

372,900
28,334
83,933214,116
707,948
1,111,005△1,227△174△929△3,119△7,323
1,630

Proceeds from sales
767

Gain on sales
137(Millions of yen)
Loss on sales
55

2 Other securities sold during the year ended March 31, 2011
Type of securities(1) Stocks(2) Bonds
Public bonds
Corporate bonds
Other(3) Other

10,079
―
384
―
―
―
―
―
―
―
―
―
Total
10,846137
440
Note: Proceeds from sales, which previously included redemption and cancellation of bonds and others, exclude them from thisfiscal year.
The amounts of proceeds from sales of other securities exclude redemption and cancellation of bonds and others for the year
ended March 31, 2010 is ¥－million.

46

ファイル名:(Derivatives Transactions)
For the year ended March 31, 2010
1 Derivatives not subject to hedge accountingNone
2 Derivatives subject to hedge accounting(1) Derivatives related to interest rate
(Millions of yen)
Hedge accounting
methodType of derivatives

Principal
items hedged

Contract
amounts

Due after one
year

Fair value

Interest rate swaps
Long-term
payment fixed,
10,340
8,300
(*)
debt
receipt fluctuated(*) Fair value of derivatives for which special treatment of interest rate swaps is applied is included to the fair value of longterm debt since it is a part of the long-term debt.

Special treatment ofinterest rate swaps

For the year ended March 31, 2011
1 Derivatives not subject to hedge accountingNone
2 Derivatives subject to hedge accounting(1) Derivatives related to interest rate
(Millions of yen)
Hedge accounting
methodType of derivatives

Principal
items hedged

Contract
amounts

Due after one
year

Fair value

Interest rate swaps
Long-term
payment fixed,
8,300
6,240
(*)
debt
receipt fluctuated(*) Fair value of derivatives for which special treatment of interest rate swaps is applied is included to the fair value of longterm debt since it is a part of the long-term debt.

Special treatment ofinterest rate swaps

47

更新日時:2011/05/06 18:15:00

ファイル名:④-5H23.3e連結一株後発開示の省略【済】.doc

印刷日時:11/05/11 13:33(Per Share Information)

For the year ended
March 31, 2010
Net assets excluding minority interests
per share
Net income per share
Notes:For the year ended
March 31, 2011
¥589,548.88¥45,553.56

Net assets excluding minority
interests per share
Net income per share¥40,832.40

1. Diluted net income per share is not presented because there are no dilutive potential of shares of common stock.
2. Net income per share is calculated based on the following:
For the year ended
March 31, 2010
Net income (Millions of yen)Note:¥546,958.90

107,210For the year ended
March 31, 2011
128,699

Amount not attributable to common――
stockholders (Millions of yen)
Net income attributable to common
107,210
128,699
stockholders (Millions of yen)
Average number of shares (shares)
2,353,494
3,151,894
Common stock
2,353.493
3,151,893
Common stock equivalent share;
Special class share
1
1
Since a shareholder of the special class share is entitled to the same rights as that for shareholders of common stock
regarding dividends and the distribution of residual property, the special class share is classified as common stock
equivalent share.

48

更新日時:2011/05/06 18:15:00

ファイル名:④-5H23.3e連結一株後発開示の省略【済】.doc

印刷日時:11/05/11 13:33(Significant Subsequent Events)
None(Omissions of Disclosure)With respect to information for leases, related party transactions, tax accounting, asset retirement obligations andretirement benefits plan respective disclosure has been omitted because it does not have significant impact on the
consolidated financial statements.

49

更新日時:2011/05/11 15:15:00 印刷日時:11/05/11 15:18

ファイル名:⑤個別英文BS_H22年度【済】.doc

5 Non-Consolidated Financial Statements(1) Non-Consolidated Balance Sheets(Millions of yen)Accounts

As of March 31, 2010

As of March 31, 2011

(Assets)
Current assets
Cash and deposits

23,03920,017

Accounts receivable-trade27,13024,913Marketable securities

103,670

93,393

2,673

2,787

112

158

Raw materials and supplies

2,531

2,317

Advance payments-trade53

15

Finished goods
Work in process and partly-finished construction

Prepaid expenses

647

672

Short-term loans receivable to subsidiaries and affiliates

35,893

26,244

Accounts receivable-other

13,614

16,908

Other

2,735

3,660

Allowance for doubtful accounts(20)(1,300)212,083

189,790

Buildings, net

9,687

10,261

Structures, net

Total current assets
Fixed assets
Tangible fixed assets

111,519

101,892

Wells, net

4,530

5,210

Machinery and equipment, net

24,494

28,837

Vehicles, net

24

29

Tools, furniture and fixtures, net

791

774

16,375

16,330

163

118

Land
Leased assets, net
Construction in progress

35,301

43,201

Total tangible fixed assets

202,888

206,657

111,247

104,294

Intangible assets
Goodwill
Mining right0

0

Software

2,705

2,490

Other

1,883

1,903

115,836

108,688

Total intangible assets50

更新日時:2011/05/11 15:15:00 印刷日時:11/05/11 15:18

ファイル名:⑤個別英文BS_H22年度【済】.doc(Millions of yen)Accounts

As of March 31, 2010

As of March 31, 2011

Investments and other assets
Investment securities

289,868

877,531

Investments in stock of subsidiaries and affiliates

460,949

481,96400Investments in capital
Investments in capital of subsidiaries and affiliates

00Long-term loans receivable

20

10Long-term loans receivable from employees

37

30

65,89369,055Long-term loans receivable from subsidiaries andaffiliates
Long-term prepaid expenses
Real estate for investment, net
Long-term deposits

15

8

13,350--55,000Recoverable accounts under production sharing

136,964

122,230

Other

14,54323,945

Allowance for doubtful accounts

(492)

(122)

Allowance for recoverable accounts under production sharing

(554)

(464)

(181,534)(186,660)

Allowance for investments in exploration
Total investments and other assets
Total fixed assets
Total assets

51

799,062

1,442,531

1,117,786

1,757,877

1,329,869

1,947,667

更新日時:2011/05/11 15:15:00 印刷日時:11/05/11 15:18

ファイル名:⑤個別英文BS_H22年度【済】.doc(Millions of yen)Accounts

As of March 31, 2010

As of March 31, 2011

(Liabilities)
Current liabilities
Accounts payable-trade

2,831

3,369

Current portion of long-term loans payable

4,210

3,830

70

43

Accounts payable-other

26,56826,051

Accrued expenses

2,279

2,433

Income taxes payable

24,614

19,903

Deferred tax liabilities

423

139

Advances received

1,611

936

Deposits payable

628

414

Accrued bonuses to officers

110

110

Asset retirement obligations

-

829

Other

53

16

63,402

58,07843,31352,882

90

71

Deferred tax liabilities

4,203

3,357

Accrued retirement benefits to employees

Lease obligations

Total current liabilities
Long-term liabilities
Long-term loans payable
Lease obligations

7,075

6,469

Liabilities for site restoration and decommissioning costs

631-

Provision for loss on business of subsidiaries and affiliates

2,014

3,764

-

2,321

Asset retirement obligations
Other

1,113

1,057

Total long-term liabilities

58,442

69,925

121,845

128,003

30,000290,809

Capital reserve

762,992

1,023,802

Total capital surplus

762,992

1,023,802-

28,054

Total liabilities(Net assets)
Shareholders’ equity
Common stock
Capital surplus

Retained earnings
Other retained earnings
Reserve for overseas investment loss
Mine prospecting reserve

7,741

7,.308399,328

472,962

407,069

508,325(5,248)(5,248)1,194,813

1,817,689

Unrealized holding gain on securities

13,210

1,973

Total valuation, translation adjustments and others

13,210

1,973

Unappropriated retained earnings
Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation, translation adjustments and others

Total net assets
Total liabilities and net assets

52

1,208,024

1,819,663

1,329,869

1,947,667

更新日時:2011/05/11 15:15:00 印刷日時:11/05/11 15:18

ファイル名:⑤個別英文PL_H22年度【済】.doc(2) Non-Consolidated Statements of Income(Millions of yen)
For the year ended
March 31, 2010

Accounts

For the year ended
March 31, 2011

Net sales

347,770

376,689

Cost of sales

127,635

146,539

Gross profit

220,134

230,149

Exploration expenses

2,996

727

Selling, general and administrative expenses

34,86838,776

Operating income

182,269

190,645

Interest income

2,188

1,808

Interest income on securities

1,722

1,873

Dividends income

32,682

69,665

Other

3,829

3,588

Total other income

40,42376,935Interest expense

604

717

Amortization of stock issuance cost

―

2,618

Provision of allowance for investment loss in exploration

20,161

19,783

Provision for loss on business of subsidiaries and affiliates

―

3,006

Loss on sales of stocks of subsidiaries and affiliates

―

3,652

15,756

19,895

―

2,903

Other

1,256

7,810

Total other expenses

37,77960,387

Ordinary income

184,913207,194

Income before income taxes

184,913207,194

Income taxes-current

90,221

88,837

Income taxes-deferred(1,769)(912)

Total income taxes

88,451

87,924

Net income

96,461

119,269

Other income

Other expenses

Foreign exchange loss
Loss on adjustment for changes of accounting standard for
asset retirement obligations

53

(3) Non-Consolidated Statements of Changes in Net Assets(Millions of yen)
For the year ended
March 31, 2010

For the year ended
March 31, 2011

30,00030,000――30,000260,809260,809290,809762,992

762,992

Issuance of new shares―

260,809

Total changes during the period―

260,809762,992

1,023,802

762,992

762,992―

260,809

Accounts
Shareholders’ equity
Common stock
Balance at the beginning of the period
Changes during the period
Issuance of new shares
Total changes during the period
Balance at the end of the period
Capital surplus
Legal capital surplus
Balance at the beginning of the period
Changes during the period

Balance at the end of the period
Total capital surplus
Balance at the beginning of the period
Changes during the period
Issuance of new shares―

260,809762,992

1,023,802――

Provision of reserve for overseas investment loss―

28,054

Total changes during the period―

28,054―28,054

4,112

7,741

Provision of mine prospecting reserve

7,741

7,308

Reversal of mine prospecting reserve(4,112)(7,741)

Total changes during the period

3,629

(432)

7,741

7,308

321,793399,328―(28,054)

Provision of mine prospecting reserve(7,741)(7,308)

Reversal of mine prospecting reserve

4,112

7,741

Dividends from surplus(15,297)(18,013)

Net income

96,461

119,269

Total changes during the period

77,53573,634399,328

472,962

Total changes during the period
Balance at the end of the period
Retained earnings
Other retained earnings
Reserve for overseas investment loss
Balance at the beginning of the period
Changes during the period

Balance at the end of the period
Mine prospecting reserve
Balance at the beginning of the period
Changes during the period

Balance at the end of the period
Retained earnings brought forward
Balance at the beginning of the period
Changes during the period
Provision of reserve for overseas investment loss

Balance at the end of the period

54

(Millions of yen)
For the year ended
March 31, 2010

For the year ended
March 31, 2011

325,905

407,069

Provision of reserve for overseas investment loss――

Provision of mine prospecting reserve――

Accounts
Total retained earnings
Balance at the beginning of the period
Changes during the period――

Dividends from surplus(15,297)(18,013)

Net income

96,461

119,269

Reversal of mine prospecting reserve

81,164

101,255

407,069

508,325

Balance at the beginning of the period(5,248)(5,248)

Balance at the end of the period(5,248)(5,248)

1,113,649

1,194,813―

521,619

Cash dividends paid

(15,297)(18,013)

Net income

96,461

119,269

Total changes during the period

81,164

622,875

1,194,813

1,817,689(5,164)

13,21018,375(11,236)

18,375(11,236)

13,210

1,973(5,164)

13,21018,375(11,236)

18,375(11,236)

13,2101,973

1,108,485

1,208,024―

521,619

Cash dividends paid

(15,297)(18,013)

Net income
Other changes in items other than those inshareholders’ equity (net)96,461

119,269

18,375(11,236)

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

Total shareholders’ equity
Balance at the beginning of the period
Changes during the period
Issuance of new shares

Balance at the end of the period
Valuation, translation adjustments and others
Unrealized holding gain (loss) on securities
Balance at the beginning of the period
Changes during the period
Other changes in items other than those inshareholders’ equity (net)Total changes during the period
Balance at the end of the period
Total valuation and translation adjustments
Balance at the beginning of the period
Changes during the period
Other changes in items other than those inshareholders’ equity (net)Total changes during the period
Balance at the end of the period
Total net assets
Balance at the beginning of the period
Changes during the period
Issuance of new shares

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

55

99,539611,638

1,208,024

1,819,663

4ファイル名:(4) Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern
None

6 Other(1) Production, Orders Received and Sales Performance1) Actual production
The following table shows actual production by business segment for the year ended March 31, 2010:
Business segment

For the year ended
March 31, 2010
80MMbbls(218 Mbbls per day)
411 Bcf( 1,127 MMcf per day)
148 MMboe(406 Mboe per day)
240 Mkl(1,512 Mbbls)
453 tons

Category
Crude oil
Natural gas

Crude oil andnatural gas

Notes:

Subtotal
Petroleumproducts
IodineElectric power
generation

137 millions kWh

1. The volume of LPG produced overseas is included in ‘Crude oil.’ On the other hand, the volume of LPG
produced in the domestic refinery is included in ‘Petroleum Products.’
2. A portion of crude oil production volume is consumed as material for petroleum products.
3. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
4. The production by the Company’s affiliates accounted for by the equity method is included in the figures above. Also the
production volume is a result for the year ended March 31 regardless of a closing date 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 122 MMbbls (335
Mbbls per day) of crude oil, 552 Bcf (1,512 MMcf per day) of natural gas, and in total 214 MMboe (587 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 stands for 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.
10. The production volume of natural gas has changed reflecting the change in applied coefficient of domestic natural gas
volume from this fiscal year.
The volume before the change is 410Bcf (1,123 MMcf per day).

56

4ファイル名:

The following table shows actual production by segment for the year ended March 31, 2011
For the year ended
Segment
Category
March 31, 2011
1.4 MMbbls
Crude oil
(3.9 Mbbls per day)
47.0Bcf
Natural gas(128.7 MMcf per day)
9.2MMboe
Subtotal(25.3 Mboe per day)Japan
239.7 MklPetroleum products(1,507.9 Mbbls)
418.7 tons
IodineElectric power
179.7 millions kWhgeneration
23.9 MMbbls
Crude oil
(65.5 Mbbls per day)
325.5 Bcf
Asia & Oceania
Natural gas(891.8 MMcf per day)78.1 MMboe
Subtotal(214.1 Mboe per day)10.2 MMbbls
Eurasia (Europe & NIS)
Crude oil(27.9 Mbbls per day)
49.4 MMbbls
Middle East & Africa
Crude oil(135.4 Mbbls per day)
2.5 MMbbls
Crude oil
(7.0 Mbbls per day)29.9 Bcf
AmericasNatural gas(82.0 MMcf per day)
7.5 MMbbls
Subtotal(20.6 Mboe per day)
87.5 MMbbls
Crude oil(239.6 Mbbls per day)
402.4 Bcf
Natural gas(1,102.5 MMcf per day)
154.5 MMboe
Subtotal(423.3 Mboe per day)Total
239.7 MklPetroleum products(1,507.9 Mbbls)
418.7 tons
IodineElectric power
179.7 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 year ended March 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 125.7 MMbbls (344.3
Mbbls per day) of crude oil, 544.7 Bcf (1,492.4 MMcf per day) of natural gas, and in total 216.5 MMboe (593.0 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 first decimal.

57

4ファイル名:

2) Orders received
Disclosure on this information is omitted because the amount of orders received is accounted for a minor portion of total
sales. In addition, there is no production for orders received in crude oil and natural gas business.
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 such as city gas companies using our pipeline.
b) The following table shows sales by business segment for the year ended March 31, 2010:

Business segment(Millions of yen)
For the year ended
March 31, 2010

Category

76,095 Mbbls

Crude Oil

486,920

418,927 MMcf
Crude oil andnatural gas

326,412Natural Gas
LPG: 3,377 Mbbls
Other

24,507

Subtotal

837,840

Other

2,586
Total

Notes:

840,427

1. The above amounts do not include the related consumption tax.
2. The Companys’ subsidiaries of which closing date for fiscal year is December 31 are principally consolidated their operating
results for the year ended December 31 except those subsidiaries prepared their financial statement for consolidation purpose
as of the consolidation closing date. However, the significant effects of the difference in fiscal periods were properly
adjusted in consolidation.
3. Sales volumes are rounded to nearest whole number.
4. Sales volume of natural gas has changed reflecting the change in applied coefficient of domestic natural gas volume fromthis fiscal year.
The volume before the change is 416,684 MMcf.

58

4ファイル名:c) The following table shows sales by segment for the year ended March 31, 2011:(Millions of yen)
For the year ended
March 31, 2011
Sales volume
Net sales

Segment

CategoryJapan

Crude OilNatural Gas(excluding LPG)
LPG

156 Mbbls

1,238

64,253 MMcf

71,848229 Mbbls

2,515

Other

28,921

Subtotal

104,524

Crude OilNatural Gas(excluding LPG)
LPG

Asia & Oceania

18,004 Mbbls

131,182306,641 MMcf

256,5633,258 Mbbls

19,081

Subtotal
Crude Oil

9,056 Mbbls

68,318Middle East & Africa

Crude Oil

48,396 Mbbls

350,735

1,040 Mbbls

6,435

Americas

Crude OilNatural Gas(excluding LPG)
Subtotal

30,334 MMcf

6,237

76,651 Mbbls

557,910401,228 MMcf

334,650

3,487 Mbbls

21,597

Total

Notes:

406,827

Eurasia (Europe & NIS)

Crude OilNatural Gas(excluding LPG)
LPG

12,673

Other

28,921

Total

943,080

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 year ended December 31, 2010 except those subsidiaries prepared their financial statements for consolidation
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

PERTAMINA

For the year ended
March 31, 2010
Ratio
Amount（ Millions of yen）（%）

For the year ended
March 31, 2011
Ratio
Amount（ Millions of yen）（%）

240,137

254,542

28.6

59

27.0