ファConsolidated Financial Results for the year ended March 31, 2014 [Japanese GAAP]May 9, 2014
Note: The following report is an English translation of the Japanese-language original.
Company name

: INPEX CORPORATION

Stock Exchange on which the Company is listed

Code number: 1605

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

Representative: Toshiaki Kitamura, President

Contact person: Kimihisa Kittaka, General Manager, Corporate Communications Unit
TEL+81-3-5572-0233: Tokyo Stock Exchange

Scheduled date of ordinary general meeting of shareholders :June 25, 2014
Scheduled date of filing Financial Report:June 26, 2014

Scheduled date of payment of cash dividends:June 26, 2014

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, 2014(April 1, 2013-March 31, 2014)(1) Consolidated operating results(Figures in % represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2014
March 31, 2013

Operating income

Millions of yen%

Millions of yen

1,334,625
1,216,533

9.7
2.5

733,610
693,447

Ordinary income
%

5.8
(2.2)

Net income

Millions of yen%

Millions of yen%

750,077
718,146

4.4

183,690
182,961

0.4
(5.7)

ሺ6.4)

(Note): Consolidated comprehensive income: for the year ended March 31, 2014, ¥ 345,672 million; (2.4%)
for the year ended March 31, 2013, ¥ 337,542 million; (40.3%)
Net income per Net income per Net income as a percentage Ordinary income as a Operating income as aof net assets excluding
percentage ofpercentage ofshare—basic
share—diluted
minority interests
total assets
net sales
For the year ended
Yen
Yen
%
%
%

March 31, 2014
March 31, 2013125.78125.29

―
―

7.0
7.9

19.6
21.5

55.0
57.0

(Reference): Equity in earnings (losses) of affiliates: for the year ended March 31, 2014, ¥ (5,053) million
for the year ended March 31, 2013, ¥ (1,041) million(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date. Net income per share is
calculated based on the assumption that the stock split was conducted on April 1, 2012.

(2) Consolidated financial position
Total assets
Millions of yen

As of March 31, 2014
As of March 31, 2013

4,038,139
3,616,158

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

Net assets

2,996,036
2,670,983

69.1
68.6

1,911.25
1,699.10(Reference): Net assets excluding minority interests: as of March 31, 2014, ¥ 2,791,108 million
as of March 31, 2013, ¥ 2,481,292 million(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date. Net assets excluding
minority interests per share is calculated based on the assumption that the stock split was conducted on April 1, 2012.

(3) Consolidated cash flows
For the year ended
March 31, 2014
March 31, 2013

Cash flows fromoperating activities
Millions of yen

Cash flows frominvesting activities
Millions of yen

213,513
252,346(395,555)(489,870)

1

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

48,961137,069

117,530
199,858

ファ

2. Dividends
Cash dividends per share
At 1st
At 2ndAt 3rdquarter end quarter end quarter end
For the year ended
March 31, 2013
March 31, 2014
For the year ending
March 31, 2015
(forecast)At fiscal
year end

Cash dividends
as a percentageof net assets(Consolidated)

Total cash
Payout ratio
dividends (Annual) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

―
―

3,500.00
3,600.00――

3,500.00
9.00

7,000.00―

25,556
26,286

14.0
14.3

1.1
1.0

―

9.00

―

9.00

18.00

―

*1: The amount of year-end dividend for the fiscal year ended March 31, 2014 is provided after taking into consideration the effect of the stock
split conducted at a ratio of 1:400 of common stock with October 1, 2013 as the effective date.
If adjusted to reflect the number of shares prior to the stock split, the amount of fiscal year-end dividend would be ¥3,600.
*2: Above information of “Dividends” is that regarding common stock. For information regarding Class A stock (which is not listed), pleaserefer to Exhibit “Dividends of Class A stock”.
3. Forecasted Consolidated Operating Results for the year ending March 31, 2015 (April 1, 2014-March 31, 2015)(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, 2014
For the year ending
March 31, 2015

Operating income% Millions of yen

Ordinary income% Millions of yen

Net income pershare

Net income% Millions of yen%

Yen

643,000(1.1)

309,000(10.2)

336,000(4.2)

80,000

(0.1)

54.78

1,331,000(0.3)

638,000(13.0)

694,000(7.5)

171,000(6.9)

117.09*Notes(1) Significant changes in scope of consolidation: None(Changes in the specified subsidiaries during the period due to change in scope of consolidation)(2) Changes in accounting policies, accounting estimates and restatement of corrections
1. Changes in accounting policies resulting from the revision of the accounting standards andother regulations
2. Other changes in accounting policies
3. Changes in accounting estimates
4. Restatement of corrections(3) Number of shares issued (Common stock)
1. Number of shares issued at the end of the period(including treasury stock):
2. Number of treasury stock at the end of the period:: Yes: None: None: None1,462,323,600 shares as of March 31, 2014
1,462,323,600 shares as of March 31, 2013
1,966,400 shares as of March 31, 2014
1,966,400 shares as of March 31, 2013
1,460,357,200 shares for the year ended March 31, 2014
1,460,357,200 shares for the year ended March 31, 2013

3. Average number of shares:(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date. Number of shares issued
is calculated based on the assumption that the stock split was conducted on April 1, 2012. For Class A stock (which is not listed), no stock split
was implemented.

(Reference) Non-Consolidated Financial Results
1. Financial results for the year ended March 31, 2014 (April 1, 2013-March 31, 2014)(1) Operating results(Figures in % represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2014
March 31, 2013

Operating income

Millions of yen%

Millions of yen

456,325
399,49614.2(11.7)

209,835
181,278

Net income pershare—basic
For the year ended
March 31, 2014
March 31, 2013

Ordinary income%

15.8(22.4)Net income

Millions of yen%

Millions of yen%

304,670
247,369

23.2
(7.0)

194,339
147,09032.1
0.9

Net income pershare—diluted
Yen

Yen

133.08100.72――(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date. Net income per share is
calculated based on the assumption that the stock split was conducted on April 1, 2012.

2ファ(2) Financial position

As of March 31, 2014
As of March 31, 2013

Net assets as apercentage of total assets

Total assets

Net assets

Millions of yen

Millions of yen%

Yen

3,542,098
3,177,617

2,274,314
2,096,127

64.2
66.0

1,557.37
1,435.35

Net assets per share(Reference): Net assets: as of March 31, 2014, ¥ 2,274,314 million
as of March 31, 2013, ¥ 2,096,127 million(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date. Net assets per share is
calculated based on the assumption that the stock split was conducted on April 1, 2012.

*Indication of audit procedure implementation status
This earnings report is exempt from audit procedure under the Financial Instruments and Exchange Act. The audit procedure for consolidated
financial statements under the Financial Instruments and Exchange Act has not been completed at the time of disclosure of this report.
*Explanation regarding the appropriate use of estimated consolidated financial results
The aforementioned forecasts “3. Forecasted Consolidated Operating Results for the year ending March 31, 2015” are based on the currently
available information and contain many uncertainties. The final results might be significantly different from the aforementioned forecasts due tochanges in business conditions including oil and natural gas price levels, production and sales plans, project development schedules, government
regulations and financial and tax schemes. Please refer to “1. (1) Analysis on Consolidated Operating Results” on page 7.

3

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

At 2nd quarter end

At 3rd quarter end

At fiscal year end

Total

Yen
Yen
Yen
Yen
Yen
For the year ended
March 31, 2013
3,500.00
3,500.00
7,000.00――
March 31, 2014
3,600.00
3,600.00
7,200.00――
For the year ending
March 31, 2015
3,600.00
3,600.00
7,200.00――(forecast)(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date, however, for Class A stock (which is

not listed), no stock split was implemented. The article, which shows that dividends of Class A stock are equivalent to dividends of a common stock prior
to the stock split, is specified in the Articles of Incorporation.

4

Index of the Attachments
1.

Results of Operations and Financial Position .............................................................................................................................. 6(1) Analysis on Consolidated Operating Results .......................................................................................................................... 6(2) Analysis on Consolidated Financial Position.......................................................................................................................... 7(3) Dividend policy and Dividends for the year ended March 31, 2014 and for the year ending March 31, 2015 ....................... 7

2.

Overview of the INPEX CORPORATION Group ....................................................................................................................... 93.

Management Policy ................................................................................................................................................................... 10(1) Management Strategy ........................................................................................................................................................... 10(2) Medium- to Long-Term Management Key Initiatives .......................................................................................................... 10

4.

Consolidated Financial Statements ............................................................................................................................................ 13(1) Consolidated Balance Sheet ................................................................................................................................................. 13(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ............................................... 15
Consolidated Statement of Income....................................................................................................................................... 15
Consolidated Statement of Comprehensive Income ............................................................................................................. 16(3) Consolidated Statement of Changes in Net Assets ............................................................................................................... 17(4) Consolidated Statement of Cash Flows ................................................................................................................................ 19(5) Notes to Consolidated Financial Statements......................................................................................................................... 21(Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern) ...................................................................................................... 21(Basis of Presenting Consolidated Financial Statements) ..................................................................................................... 21(Changes in Accounting Policies) ......................................................................................................................................... 25(Changes in the Presentation)................................................................................................................................................ 25(Consolidated Balance Sheet) ............................................................................................................................................... 26(Consolidated Statement of Income) ..................................................................................................................................... 29(Consolidated Statement of Comprehensive Income) ........................................................................................................... 29(Consolidated Statement of Changes in Net Assets) ............................................................................................................. 30(Consolidated Statement of Cash Flows) .............................................................................................................................. 32(Segment Information and Others) ........................................................................................................................................ 33(Financial Instruments) ......................................................................................................................................................... 38(Securities) ............................................................................................................................................................................ 42(Derivative Transactions) ...................................................................................................................................................... 44(Per Share Information) ........................................................................................................................................................ 45(Significant Subsequent Events) ........................................................................................................................................... 46(Omissions of Disclosure) ..................................................................................................................................................... 46

5.

Non-Consolidated Financial Statements .................................................................................................................................... 47(1) Non-Consolidated Balance Sheet ......................................................................................................................................... 47(2) Non-Consolidated Statement of Income ............................................................................................................................... 50(3) Non-Consolidated Statement of Changes in Net Assets ....................................................................................................... 51(4) Notes to Non-Consolidated Financial Statements ................................................................................................................ 55(Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern) ....................................................................................................... 55

6.

Other............................................................................................................................................................................................. 55(1) Production, Orders Received and Sales Performance........................................................................................................... 55

5

1. Results of Operations and Financial Position(1) Analysis on Consolidated Operating Results
During this fiscal year, the Japanese economy followed a gradual recovery trend, such as a pickup in consumer spending andproductive activity and improvement of low employment, owing to the Government’s economic policy and Bank of Japan’s
monetary easing.
International oil prices gave a significant impact on the performance of our Group. Brent crude oil, which is one of the typicalindicators, started from US$111.08 per barrel. Although Brent crude oil price fell to US$97.69 per barrel at one point due tostagnation in economic indicators in the U.S., the upward trend began and rose to US$116.61 per barrel in late August, following
the growing tension in Syria.
After mid-September, however, when military intervention in Syria was avoided, Brent crude oil price grew weaker and dropped
to US$103.46 per barrel in early November. Afterward, against a background of the expectation of crude demand due tosuspension of crude oil production in some oilfields in Libya and improvement in economic indicators in countries, the upward
trend began again and remained at US$110 per barrel level in December.
Since the beginning of the year 2014, Brent crude oil price somewhat moved and finished at US$107.76 per barrel at the end of
this fiscal year.
Meanwhile, crude oil and petroleum product prices in the domestic market changed correlating with the international crude oil
prices. Reflecting these circumstances, the average sales price for crude oil for the fiscal year for the Group was US$107.78 perbarrel, which is US$2.33 lower than that of the previous fiscal year.
The foreign exchange market, another important factor that affects the business of our Group, began to trade at the ¥94 level to the
U.S. dollar. The yen depreciation steadily continued against the U.S.dollar to the ¥103 level in mid-May while the Policy Board of
the Bank of Japan decided to introduce the “quantitative and qualitative monetary easing” above market expectations at theMonetary Policy Meeting held in April.
When Chairman Bernanke of Federal Reserve Board implied FRB would downscale its quantitate monetary easing, the yen
recovered to the ¥93 level due to the movement to avoid risky assets. However, yen selling turned out dominant again after
interest rate of the U.S. rose and sideways movement continued for a while after that.
In the face of U.S. economic recovery after November 2013 as well as FOMC (Federal Open Market Committee) decision to
downscale the quantitate monetary easing in December, the yen depreciated against the U.S. dollar gradually to the ¥105.40 level.
Although the yen once appreciated to the ¥100 level as investors avoided risky assets with concern over emerging economies fromthe beginning of 2014, TTM closed at ¥102.92 to the U.S. dollar which turned out to be ¥8.93 lower than that of the fiscal year endof March 31, 2013.
Reflecting these situations, the average sales exchange rate for our Group for this fiscal year was ¥100.20 to the U.S. dollar, whichis ¥17.52 lower than that of the previous fiscal year.
Consolidated net sales for the year ended March 31, 2014 increased by ¥118.0 billion, or 9.7%, to ¥1,334.6 billion from theprevious fiscal year due to the depreciation of Japanese yen against the U.S. dollar, despite decreases in sales price and sales
volume of crude oil.
Net sales of crude oil increased by ¥70.6 billion, or 9.0%, to ¥858.7 billion, and net sales of natural gas increased by ¥57.6 billion,or 14.5%, to ¥455.4 billion.
Sales volume of crude oil decreased by 7,018 thousand barrels, or 8.1%, to 79,171 thousand barrels due to the decline inproduction in the Van Gogh Oil Field and the Kitan Oil Field. Sales volume of natural gas increased by 8,325 million cf, or 2.6%,
to 327,117 million cf. Sales volume of overseas natural gas increased by 6,649 million cf, or 2.6%, to 260,011 million cf due to anincrease in sales volume in Americas, and sales volume of domestic natural gas increased by 45 million ㎥, or 2.6%, to 1,798
million ㎥ (67,106 million cf).
The average sales price of overseas crude oil decreased by US$2.33, or 2.1 %, to US$107.78 per barrel. Meanwhile, the averagesales price of overseas natural gas decreased by US$0.34, or 2.5%, to US$13.09 per thousand cf. In addition, the average sales
price of domestic natural gas increased by ¥3.29, or 7.0%, to ¥50.31 per ㎥.
The increase of ¥118.0 billion in net sales was mainly derived from the following factors: regarding net sales of crude oil andnatural gas, a decreased in sales volume pushing sales down of ¥60.4 billion, and unit sales price pushing sales down of ¥23.2
billion, and the depreciation of Japanese yen against the U.S. dollar contributing ¥211.9 billion to the increase, in addition, adecrease in net sales excluding crude oil and natural gas of ¥10.1 billion.
Cost of sales for the year ended March 31, 2014 increased by ¥64.0 billion, or 15.0%, to ¥490.4 billion due mainly to thedepreciation of Japanese yen against the U.S. dollar. Exploration expenses increased by ¥8.0 billion, or 40.2%, to ¥28.2 billion due
mainly to an increase in exploration activities in Japan and in the Middle East and Africa region. Selling, general andadministrative expenses increased by ¥5.7 billion, or 7.5%, to ¥82.3 billion. As a result, operating income increased by ¥40.1
billion, or 5.8%, to ¥733.6 billion.
Other income decreased by ¥47.9 billion, or 48.6 %, to ¥50.7 billion due mainly to a decrease in gain on transfer of mining rights,
despite an increase in gain on sales of marketable securities. Other expenses decreased by ¥39.7 billion, or 53.7%, to ¥34.2 billion
due to decreases in provision for exploration projects and foreign exchange loss. As a result, ordinary income increased by ¥31.9
billion, or 4.4%, to ¥750.0 billion.
Total amount of current income taxes and deferred income taxes increased by ¥33.8 billion, or 6.4%, to ¥563.1 billion, andminority interests were ¥3.2 billion. As a result of the above effects, net income for the year ended March 31, 2014 increased by¥0.7 billion, or 0.4%, to ¥183.6 billion.
Financial results by segment are as follows:
1)

Japan
Net sales increased by ¥1.3 billion, or 1.1%, to ¥120.2 billion due to increases in sales price and sales volume of natural gas.

6

2)

3)

4)

5)

Operating income decreased by ¥5.7 billion, or 20.3%, to ¥22.7 billion due to increases in net purchase of natural gas andexploration expenses.
Asia & Oceania
Net sales decreased by ¥0.2 billion, or 0.0%, to ¥485.0 billion due to decreases in sales price of crude oil and sales volume,
despite the depreciation of the Japanese yen against the U.S. dollar. Operating income decreased by ¥16.7 billion, or 6.0%,
to ¥264.8 billion due to the depreciation of the Japanese yen against the U.S. dollar and an increase in cost of sales caused byincreases in administrative expenses and others.
Eurasia (Europe & NIS)
Net sales increased by ¥10.8 billion, or 12.6%, to ¥96.3 billion due to the depreciation of the Japanese yen against the U.S.
dollar, despite decreases in sales price and sales volume of crude oil. Operating income increased by ¥0.8 billion, or 2.0%, to¥42.6 billion.
Middle East & Africa
Net sales increased by ¥100.6 billion, or 19.3%, to ¥621.5 billion due to an increase in sales volume of crude oil and thedepreciation of the Japanese yen against the U.S. dollar, despite a decrease in sales price of crude oil. Operating income
increased by ¥63.8 billion, or 17.9%, to ¥421.1 billion.
Americas
Net sales increased by ¥5.4 billion, or 92.4%, to ¥11.4 billion due to an increase in sales volume of natural gas. Operating
loss increased by ¥1.5 billion, or 25.6%, to ¥7.6 billion due to an increase in cost of sales caused by increases inadministrative expenses and others.

As for the outlook, consolidated net sales for the six months ending September 30, 2014 are expected to be ¥643.0 billion, todecrease by 1.1% compared with the six months ended September 30, 2013, and net sales for the year ending March 31, 2015 are
expected to be ¥1,331.0 billion, to decrease by 0.3% compared with the year ended March 31, 2014.
Operating income for the six months ending September 30, 2014 is expected to be ¥309.0 billion, to decrease by 10.2% comparedwith the six months ended September 30, 2013, and operating income for the year ending March 31, 2015 is expected to be¥638.0 billion, to decrease by 13.0% compared with the year ended March 31, 2014.
Ordinary income for the six months ending September 30, 2014 is expected to be ¥336.0 billion, to decrease by 4.2% comparedwith the six months ended September 30, 2013, and ordinary income for the year ending March 31, 2015 is expected to be ¥694.0
billion, to decrease by 7.5% compared with the year ended March 31, 2014. Net income for the six months ending September 30,
2014 is expected to be ¥80.0 billion, to decrease by 0.1% compared with the six months ended September 30, 2013, and net
income for the year ending March 31, 2015 is expected to be ¥171.0 billion, to decrease by 6.9% compared with the year ended
March 31, 2014.
Net sales and net income for the year ending March 31, 2015 are expected to decrease due to the forecasted decline in the crude
oil price compared with the previous fiscal year and others.
In these estimates, the crude oil price is assumed to be US$105.0 per barrel (for Brent crude oil) with the exchange rate of theJapanese yen against the U.S. dollar at ¥100 through the year ending March 31, 2015.
(2) Analysis on Consolidated Financial Position
Consolidated total assets as of March 31, 2014 increased by ¥421.9 billion to ¥4,038.1 billion from ¥3,616.1 billion as of March
31, 2013. Current assets increased by ¥33.7 billion to ¥1,140.2 billion due to an increase in cash and deposits and others. Fixed
assets increased by ¥388.2 billion to ¥2,897.9 billion due to increases in construction in progress, recoverable accounts under
production sharing, long-term time deposits and others.
Meanwhile, total liabilities increased by ¥96.9 billion to ¥1,042.1 billion from ¥945.1 billion as of March 31, 2013. Current
liabilities decreased by ¥39.3 billion to ¥375.6 billion due to a decrease in income taxes payable and others. Long-term liabilities
increased by ¥136.2 billion to ¥666.4 billion due to an increase in long-term debt and others.
Net assets increased by ¥325.0 billion, to ¥2,996.0 billion. Total shareholders’ equity increased by ¥157.7 billion, to ¥2,497.7
billion. Total accumulated other comprehensive income increased by ¥152.0 billion to ¥293.3 billion and minority interests
increased by ¥15.2 billion to ¥204.9 billion.
As for cash flows for the year ended March 31, 2014, net cash provided by operating activities decreased by ¥38.8 billion to¥213.5 billion from the previous fiscal year due to increases in income taxes paid and recoverable accounts under production
sharing (operating expenditures), despite an increase in income before income taxes and minority interests. Meanwhile, net cashused in investing activities decreased by ¥94.3 billion to ¥395.5 billion due to decreases in payments for purchase of mining
rights and long-term loans made, despite an increase in payments for purchases of tangible fixed assets. Net cash provided byfinancing activities decreased by ¥88.1 billion to ¥48.9 billion due to decreases in proceeds from long-term debt and proceedsfrom minority interests for additional shares.
After totaling ¥50.7 billion of the effect of exchange rate changes on cash and cash equivalents, the decrease in cash and cash
equivalents for the year ended March 31, 2014 amounted to ¥82.3 billion. Cash and cash equivalents at the end of the year ended
March 31, 2014 totaled ¥117.5 billion reflecting the above net decrease of ¥82.3 billion, from ¥199.8 billion at the end of theprevious fiscal year.
(3) Dividend policy and Dividends for the year ended March 31, 2014 and for the year ending March 31, 2015
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.

7

We decided the mid-term dividend to be ¥3,600* per share, and the year-end dividend to be ¥9 per share for the year ended March
31, 2014 based on the policy above.
We plan a mid-term dividend to be ¥9 per share and a year-end dividend to be ¥9 per share, thus the total dividend for the year
ending March 31, 2015 is to be ¥18 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.
* Information about mid-term dividend for the fiscal year ended March 31, 2014 is provided before taking into consideration theeffect of the stock split conducted at a ratio of 1:400 as to the common stock with October 1, 2013 as the effective date.

82. Overview of the INPEX CORPORATION GroupThe INPEX CORPORATION Group consists of INPEX CORPORATION, 75 subsidiaries (including 66 consolidated
subsidiaries), 25 affiliates (including 19 equity method affiliates) and their 3 subsidiaries (as of March 31, 2014). 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)", "Middle East & Africa" and "Americas".
The following diagram shows our Group’s business flow.

Crude oil and Natural gas exploration, development, production and sales

INPEX CORPORATION

Pipeline, Liquefaction

Drilling, Civil work etc.

Crude Oil
Sales

Crude Oil andNatural Gas Sales

Natural Gas Sales

Pipeline, Liquefaction etc.

Natural Gas andother Sales

Crude Oil
Sales

＜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.
Saitama Gas Co., Ltd.
Other 2 consolidated subsidiaries●Equity method affiliates(Asia & Oceania)
Ichthys LNG Pty Ltd
Other 3 equity method affiliates●Consolidated subsidiaries(Japan)Teiseki Drilling Co., Ltd.
And one consolidated subsidiary

Crude Oil andNatural Gas Sales

Drilling, Civil work etc.

Other business

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

9

Customers

Crude Oil Sales＜Exploration, Development, Production＞●Consolidated subsidiaries(Asia & Oceania)
INPEX Natuna, Ltd.
INPEX Sahul, Ltd.
INPEX Alpha, Ltd.
INPEX Ichthys Pty Ltd
INPEX Oil & Gas Australia Pty 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 and Gas Venezuela C.A.
INPEX Gas British Columbia, Ltd.
Other 44 consolidated subsidiaries●Equity method affiliates(Asia & Oceania)
MI Berau B.V.
(Middle East & Africa)
Angola Block 14 B.V.
(Americas)
INPEX Offshore North Campos, Ltd.
Other 12 equity method affiliates〈Overseas Crude oil Sales〉
INPEX Trading, Ltd.
(Consolidated Subsidiary)
And one consolidated subsidiary

Crude Oil/ Natural Gas Sales3. Management Policy(1) Management Strategy
The INPEX Group positions itself to become a top class international oil and gas exploration and production company
through sustainable growth in the oil and gas development business. With natural gas as the core of our business, we will growinto an integrated energy company by making contributions to a stable energy supply to broader communities. We willcontinue to play a significant role in boosting the capability of supplying energy to Japan while contributing to the global
economic growth and social development. Through these efforts, we intend to further advance our reputation among ourshareholders and more broadly our stakeholders as a company serving an essential role in the global community.
(2) Medium- to Long-Term Management Key Initiatives
Based on the Management Strategy above, we carry out our businesses in accordance with three measures as follows;- Continuous enhancement of E&P activities to become a top class international oil & gas E&P company- Strengthening gas supply chain to further globalize gas business- Reinforcement of renewable energy initiatives to become an integrated energy company that contributes to the global
community
Our challenges are as follows;
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, and achieving sustainable growth by maintaining
and expanding reserves through reinvesting the cash flow obtained from its existing oil and gas fields. The INPEX Group
strives to ensure HSE management and preservation of the environment, formulating the safety-conscious and environmental
sound system or framework across the INPEX Group based on the internationally recognized standards. By combining
overseas projects that promise high growth potential arising from expansion of reserves with domestic projects that arewithout country risks or foreign exchange risks, we are seeking qualitative improvements in our asset portfolio. At the sametime, by leveraging our business resources more effectively through an organic linkage of our overseas assets and ourdomestic infrastructure, we aim to further enhance our corporate value.
In May 2012, we set the targets to achieve sustainable growth over the medium- to long-term, and clarified key initiatives
for the medium term as described in the “MEDIUM- TO LONG-TERM VISION OF INPEX”. It sets three growth targets as“① Continuous Enhancement of E&P Activities,” “② Strengthening Gas Supply Chain” and “③ Reinforcement ofRenewable Energy Initiatives,” and to support such growth, it sets three management policies as “① Securing / Developing
Human Resources and Building an Efficient Organizational Structure,” “ ② Investment for Growth and Return for
Shareholders” and “③ Responsible Management as a Global Company.” Through achieving our Vision, the Company intends
to further enhance our corporate value and our reputation among our shareholders and more broadly our stakeholders as acompany serving an essential role in the global community.
As our immediate business challenges, we recognize the importance of steady development activities of the two large scale
LNG projects in Australia (Ichthys) and Indonesia (Abadi), stable production activities under the existing producing projects
including Mahakam in Indonesia, ADMA Block offshore Abu Dhabi and ACG oil fields in Azerbaijan, proactive exploration
activities for acquiring new oil and gas reserves, and pursuit of opportunities to acquire good projects. In our domestic gas
business, we consider that the sustainable growth of natural gas business is important to respond to growing social
requirements for expanding natural gas use. To meet such requirements, we have been enhancing domestic gas infrastructure
including the completion of Naoetsu LNG Receiving Terminal and the construction of Toyama Line, and we have beendeveloping the Gas Supply Chain which optimizes usage of overseas natural gas assets and domestic gas supply infrastructure.
Our policy of business operation and approach to address the challenges are as follows;①

Continuous Enhancement of E&P Activitiesⅰ) Achieve a Well Balanced Asset Portfolio- Regional Diversification
The operating areas and asset portfolio of the Company have diversified to not only Japan, Asia and Oceania where wehave a wealth of experience and assets, but also the Middle East, the Caspian Sea, Central and South America, Africa andso on. We will proactively continue to invest in Asia, Oceania and other regions taking the regional balance into
consideration.
- Output ratio between Crude Oil and Gas
According to the outputs by products, the share of crude oil is around 60% while the share of natural gas is around 40%.
Crude oil is utilized all over the world as an easily handled fuel with various uses as well as its ease of transportation andstorage. As crude oil is a rather sensitive commodity, the sales prices are often influenced by the conditions of the market.
Although the customers are not fixed in a long term, 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 once the oil fields are discovered.
Natural gas is the most environmentally friendly fuel among fossil fuels and its utilization is expected to be promoted asa quick effective measure against global warming. Commercial production of natural gas requires substantial investment
and a long lead time of preparation for constructing liquefaction plants or pipelines. Since gas buyers are also required tomake large investments in LNG receiving facilities, stable and long-term sales contracts are essential. With an assurance oflong term LNG supply to the customers, a relatively stable profitability is achieved while it is sensitive to oil pricefluctuations.
In acquiring new projects, we focus on a balance between crude oil and natural gas production to ensure efficientinvestment with a view to securing long-term cash flow.

10

- 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 will continue to negotiate the extension of the contracts
for the offshore Mahakam area and ADMA Block, which are our major production projects while investing in exploration,
producing and undeveloped oil and gas assets and further pursuing corporate M&A opportunities.
- 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 oil prices, with service contracts or fixed margin contracts,
for which profitability is less influenced by oil prices.
ⅱ) Enhance Activities and Capabilities as Operator
In acting as Operator, we face managerial challenges such as the difficulty in securing manpower and the heavy burden offinancing. However, involvement as 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 Operator, such as Ichthys and Abadi, with enhanced technologicalcapabilities resulting from business integration.
ⅲ) Strengthening Relationships with Leading Domestic and International Oil and Gas Companies
Developing oil and gas involves considerable risks. Large-scale projects in particular require huge investment, presenting
an insuperable obstacle for a single company. Companies form a consortium to share the risks, and this is an international
practice, too. The Company plans to expand its business and to diversify risks by increasing opportunities to participate inprojects through enhanced cooperation with major international oil companies, national oil companies in oil and gas
producing countries as well as leading private oil resource developers, trading companies and other energy-related companies.
②

Strengthening Gas Supply Chain
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 strengthen production system in the key Minami Nagaoka gas field. We also own
promising assets, primarily natural gas, in Indonesia and Australia and other areas to ensure our long-term growth. With thelast year’s completion of Naoetsu LNG Receiving Terminal as a turning point, we will continue an aggressive pursuit of theenlarged business domain including power generation taking the reforms of electricity and gas business sector into
consideration, in order to strengthen our gas business integration that organically links these overseas gas assets with ourdomestic infrastructure (gas supply chain).

③

Reinforcement of renewable energy initiatives
The Company is positioned for “Evolvement into a company that offers diversified forms of energy” as one of our
medium-to long-term strategies, and has been doing businesses based on this strategy. Our main goal is to live with the global
community and to contribute to the sustainable social development by growing ourselves to be an energy company, which iscapable of supplying a variety of environmentally friendly energies in addition to oil and natural gas. We are challenging todevelop new business areas in cooperation with domestic and international companies, universities and others. In particular,
we pursue opportunities to participate in or develop new businesses for renewable energies such as photovoltaic and solar
thermal power generation, wind power generation, geothermal power generation, biomass fuel, and energy utilization
technologies using hydrogen, fuel cell and high performance batteries.

④

Securing / Developing Human Resources and Building an Efficient Organizational Structure
The Company established its "New Ventures Division" to advance our vision in June 2012. This year, we reorganizedoverseas project divisions and units to promote our overseas business flexibly and efficiently. We also newly established "Gas
Supply & Infrastructure Division" to strengthen our business execution system that will allow us to meet our expanded gas
supply chain. We will continue building an efficient organizational structure and will secure and utilize global humanresources with diverse experiences and values. Through these efforts, we will establish an efficient business execution system.

⑤

Investment for Growth and Return for Shareholders
For the growth of the Company, we will steadily carry out investment activities in the medium- to long-term while
maintaining the soundness of our financial position. Considering the production startup schedule of Ichthys and other operator
projects, we will realize an appropriate level of return for shareholders. We will also enhance management efficiency befitting
top class international oil and gas E&P companies.

⑥ Responsible Management as a Global Companyⅰ) Promote CSR management, Enhance stakeholder communications, establish corporate governance and compliance
The Company has been trying hard to develop its responsible management system as a global company. We are engaging
in various approaches to continuously strengthen its CSR management under the CSR Committee of which chairman is thepresident. We will continue to promote active information disclosure and communication so as to reach out to our broadly
based stakeholders. We implemented some measures to reinforce our corporate governance from a global perspective in 2012.
Specifically we established the “INPEX Advisory Committee” on October 2012. We will further improve corporate
governance and compliance management systems.

11ⅱ) Efforts for Health, Safety and Environment
The Company has organized integrated HSE management system in line with international standards and has been trying
hard to secure the safety and health of people concerned in our business and the environment. The Company places preventionof 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 for environmental issues, particularly global warming,
we make every effort to minimize the effects on surrounding areas when we explore for, develop energy resources, produce
and sell the products. 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 and reduce waste and conserve
biological diversity. And through our global activities, we appropriately evaluate security risks of each country and area
where we operate, and will implement measures for minimizing and protecting from them.
Based on the mission to supply energy in a stable and efficient manner thereby contribute to the good of society, and theactivities in line with the Vision, the Company will improve our corporate value over the long term with a view to securing
steady growth.

12更新日時:2014/05/07 16:07:00

ァイル名:③-1H26.3_aBS【済】p13-14.doc

印刷日時:14/05/07 16:07

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

As of March 31, 2013

As of March 31, 2014

(Assets)
Current assets
Cash and deposits

483,814650,187

Accounts receivable-trade117,411

110,395

Marketable securities

281,642

201,000

Inventories*1

15,409*1

25,485

Deferred tax assets

10,111

7,745

Accounts receivable-other

94,333

121,120

Other

118,701

41,912Less allowance for doubtful accounts(14,919)(17,643)

Total current assets

1,106,504

1,140,204

Buildings and structures, net

102,965

145,936

Wells, net

19,77725,348

Machinery, equipment and vehicles, net

71,477

112,898

Land

19,56019,736

Construction in progress

359,429

626,520

Other, net

11,33021,339*2,4,5 584,541*2,4,5 951,779

Goodwill

87,84081,080Exploration and development rights

118,869

125,621

Mining rights

167,178

221,411

6,266

11,065

380,155

439,178

Fixed assets
Tangible fixed assets

Total tangible fixed assets
Intangible assets

Other
Total intangible assets
Investments and other assets
Investment securities*3,4

673,129*3,4,6476,407

Long-term loans receivable

7,263

33,091Long-term time deposits

287,273

364,103

Recoverable accounts under production
sharing

590,565

685,990

Deferred tax assets

40,076

13,821

Other

*3,4

Less allowance for doubtful accounts

65,433*3,4

61,159

(793)

(885)

(112,870)(123,483)(5,119)(3,226)

Total investments and other assets

1,544,957

1,506,977

Total fixed assets

2,509,654

2,897,935

3,616,158

4,038,139

Less allowance for recoverable accounts
under production sharing
Less allowance for investments in exploration

Total assets13更新日時:2014/05/07 16:07:00

ァイル名:③-1H26.3_aBS【済】p13-14.doc

印刷日時:14/05/07 16:07(Millions of yen)Accounts

As of March 31, 2013

As of March 31, 2014

(Liabilities)
Current liabilities
Accounts payable-trade

41,401

Short-term loans*4

Income taxes payable

8,560

46,811*4

152,681

Accounts payable-other*4

Provision for exploration projects

133,232

21,954
91,198*4

131,904

26,856

9,816

Accrued bonuses to officers

127

110

Asset retirement obligations

3,812

2,353

Other

48,30371,521

Total current liabilities

414,976375,670*4 466,908*4 561,674

Deferred tax liabilities

34,98754,959Accrued retirement benefits to employees

8,580

―

Provision for loss on business

3,705

6,977

Accrued special repair and maintenance

277

234

Net defined benefit liability

―

7,793

Asset retirement obligations

13,581

25,954Long-term liabilities
Long-term debt

Other

*4

Total long-term liabilities

2,156

*4

8,838

530,198

666,432

945,174

1,042,102

Common stock

290,809290,809

Capital surplus

679,287

679,287

Retained earnings

1,375,106

1,532,876

Treasury stock(5,248)(5,248)2,339,956

2,497,725

Unrealized holding gain on securities

34,74144,737

Unrealized gain (loss) from hedging instruments

16,243(17,578)

Translation adjustments

90,350266,224

Total accumulated other comprehensive income

141,336

293,382

Minority interests

189,691

204,928

Total net assets

2,670,983

2,996,036

Total liabilities and net assets

3,616,158

4,038,139

Total liabilities(Net assets)
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income1415ァイル名:③-2H26.3_bPL_包括利益【済】p15-16.doc

更新日時(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)
For the year ended
March 31, 2013

Accounts

Net sales

For the year ended
March 31, 2014

1,216,533

1,334,625

Cost of sales

426,326

490,416Gross profit

790,206

844,209

Exploration expenses

20,12428,205*1,2

Selling, general and administrative expenses

76,634*1,2

82,392

693,447

733,610

Interest income

8,734

17,462

Dividend income

7,832

9,227

40

10,335

Other

82,05913,709Total other income

98,66650,734

Interest expense

1,518

2,335

Equity in losses of affiliates

1,041

5,053

Provision for allowance for recoverable accounts
under production sharing

15,131

8,028

Provision for exploration projects

12,452

1,165

Foreign exchange loss

30,055

4,279

Other

13,76913,404

Total other expenses

73,96834,266

Ordinary income

718,146

750,077

Income before income taxes and minority interests

718,146

750,077

Income taxes-current

539,207514,015

Income taxes-deferred(9,932)

49,121

Total income taxes

529,275

563,136

Income before minority interests

188,870

186,941

5,909

3,250

182,961

183,690

Operating income
Other income

Gain on sales of marketable securities

Other expenses

Minority interests
Net income1516ァイル名:③-2H26.3_bPL_包括利益【済】p15-16.doc

更新日時

Consolidated Statement of Comprehensive Income(Millions of yen)
For the year ended
March 31, 2013

Accounts

Income before minority interests

For the year ended
March 31, 2014

188,870

186,941

Unrealized holding gain on securities

27,787

9,981

Unrealized gain (loss) from hedging instruments

16,769(20,887)

Translation adjustments

105,692

176,311

Share of other comprehensive income of associates
accounted for by the equity method(1,577)(6,674)

Other comprehensive income*1

Total other comprehensive income
Comprehensive income

148,671*1

158,731

337,542

345,672

329,422335,737

8,119

9,934

Total comprehensive income attributable to
Shareholders of INPEX CORPORATION
Minority interests16(3) Consolidated Statement of Changes in Net Assets
For the year ended March 31, 2013

(Millions of yen)
Shareholders' equity

Balance at the beginningof the period
Changes during the period

Common stock

Capital surplus

Retained earnings

Treasury stock

290,809679,287

1,219,526(5,248)

Total
Shareholders'equity2,184,375

Cash dividends paid

(27,381)(27,381)Net income

182,961

182,961

Other changes in items
other than those inshareholders’ equity, net
Total changes during theperiodBalance at the end of theperiod――155,580―

155,580

290,809679,287

1,375,106(5,248)2,339,956

Minority
interests

Total
net assets

Accumulated other comprehensive income
Unrealized
Unrealized gain
holding gain on from hedging
instruments
securities
Balance at the beginningof the period
Changes during the period

6,952

4,118

Translation
adjustments

Total
accumulated
othercomprehensive
income(16,195)(5,124)

134,9412,314,193

Cash dividends paid

(27,381)Net income

182,961

Other changes in items
other than those inshareholders’ equity, net
Total changes during theperiodBalance at the end of theperiod27,78812,125

106,546

146,460

54,749201,210

27,78812,125

106,546

146,460

54,749356,790

34,741

16,24390,350141,336

189,691

2,670,983

17

For the year ended March 31, 2014
(Millions of yen)
Shareholders' equity

Balance at the beginningof the period
Changes during the period

Common stock

Capital surplus

Retained earnings

Treasury stock

290,809679,287

1,375,106(5,248)

Total
Shareholders'equity2,339,956

Cash dividends paid

(25,921)(25,921)

Net income

183,690

183,690

Other changes in items
other than those inshareholders’ equity, net
Total changes during theperiodBalance at the end of theperiod――157,769―

157,769

290,809679,287

1,532,876(5,248)2,497,725

Minority
interests

Total
net assets

Accumulated other comprehensive income
Unrealized
Unrealizedgain(loss)
fromholding gain on
hedgingsecurities
instruments
Balance at the beginningof the period
Changes during the period

34,741

16,243

Translation
adjustments

Total
accumulated
othercomprehensive
income90,350141,336

189,691

2,670,983

Cash dividends paid

(25,921)

Net income

183,690

Other changes in items
other than those inshareholders’ equity, net
Total changes during theperiodBalance at the end of theperiod9,995(33,822)

175,873

152,046

15,236167,283

9,995(33,822)

175,873

152,046

15,236

325,052

44,737(17,578)

266,224

293,382

204,928

2,996,03618

- 19 - - 19 -ファイル名:③(4) Consolidated Statement of Cash Flows(Millions of yen)
For the year ended
March 31, 2013

Accounts

For the year ended
March 31, 2014

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

718,146

750,077

Depreciation and amortization

51,91550,916

Amortization of goodwill

6,760

6,760

Provision for allowance for recoverable accounts
under production sharing

16,353

14,882

Provision for exploration projects

21,132(17,318)

Provision for accrued retirement benefits to employees

2,285

―

Other provisions

5,546

5,024

Net defined benefit liability

―

(776)

Interest and dividend income(16,567)(26,691)

Interest expense

1,518

2,335

Foreign exchange loss (gain)

16,32914,105Equity in (earnings) losses of affiliates

1,041

5,053

54,086

67,073(21,079)(60,491)

Accounts receivable-trade

2,795

6,276

Inventories(3,231)(10,013)

Accounts payable-trade

11,0295,413

Accounts receivable-other

4,909(35,287)

Accounts payable-other(900)(18,142)

Advances received(24,636)

2,168

Other

(72,531)(5,247)

Subtotal

774,906

756,118

Interest and dividends received

19,652

26,932

Interest paid

(1,344)(2,381)

Income taxes paid

(540,868)(567,156)

Net cash provided by operating activities

252,346

213,513

Recovery of recoverable accounts under
production sharing (capital expenditures)
Recoverable accounts under production
sharing (operating expenditures)19

- 20 - - 20 -ファイル名:③(Millions of yen)
For the year ended
March 31, 2013

Accounts

For the year ended
March 31, 2014

Cash flows from investing activities
Increase in time deposits(299,460)(211,332)

Decrease in time deposits

134,161

276,248

Increase in long-term time deposits(252,082)(484,080)

Decrease in long-term time deposits

5,000

130,757(189,153)(323,650)

Proceeds from sales of tangible fixed assets

116

677

Payments for purchases of intangible assets(4,256)(6,170)

Payments for purchases of marketable securities(17,709)―

Proceeds from sales and redemptions of marketable securities

366,633

285,451

Payments for purchases of investment securities(90,830)(24,637)

Proceeds from sales and redemptions of investment securities

70,90262,433

Investment in recoverable accounts under
production sharing (capital expenditures)(82,695)(104,073)(85)(4,187)Long-term loans made(141,222)(37,158)

Collection of long-term loans receivable

119,238

75,464

Payments for purchase of mining rights(176,231)(42,733)

67,805

11,438(489,870)(395,555)

991

2,690

Proceeds from long-term debt

121,571

74,742

Repayments of long-term debt

(4,681)(7,759)Proceeds from minority interests for additional shares

55,852

10,289Cash dividends paid

(27,385)(25,934)

Dividends paid to minority shareholders(4,991)(4,991)Other(4,286)(74)

Net cash provided by financing activities

137,069

48,961

Effect of exchange rate changes on cash and cash equivalents

51,49850,752

Net increase (decrease) in cash and cash equivalents(48,956)(82,327)

Cash and cash equivalents at beginning of the period

249,233

199,858

Increase in cash and cash equivalents from newly consolidated
subsidiary439―

Decrease in cash and cash equivalents resulting from exclusionof subsidiaries from consolidation

(858)

―

Payments for purchases of tangible fixed assets

Decrease (increase) in short-term loans receivable

Other
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans

Cash and cash equivalents at end of the period*120

199,858*1

117,530

(5) Notes to Consolidated Financial Statements(Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going
concern)
None(Basis of Presenting Consolidated Financial Statements)
1. Scope of consolidation
Number of consolidated subsidiaries: 66
Names of major subsidiaries;
Japan Oil Development Co., Ltd., INPEX Alpha, Ltd., INPEX Natuna, Ltd., INPEX Sahul, Ltd., INPEX Southwest
Caspian Sea, Ltd., INPEX Gas British Columbia Ltd., INPEX North Caspian Sea, Ltd., INPEX Browse, Ltd., INPEX
Holdings Australia Pty Ltd, INPEX Ichthys Pty Ltd, INPEX Oil & Gas Australia Pty Ltd and INPEX Masela, Ltd.
During this period:
Number of companies newly included in the scope of consolidation: 6
Number of companies excluded from the scope of consolidation: 1
Details for the above changes:
1) INPEX Uruguay, Ltd., INPEX West Sebuku, Ltd., INPEX Energy Trading Singapore Pte Ltd. and another have been
newly included due to establishment of the companies.
2) INPEX Offshore Timor-Leste, Ltd., INPEX West of Shetland Limited have been newly included due
to an increase in materiality of the companies.
3) Teiseki Transport System Co. Ltd. has been excluded due to a merger.
Names of major non-consolidated subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C. V. and TELNITE CO.,LTD.
(Reason for exclusion from the scope of consolidation)
Those companies are not consolidated because their total assets, total net sales, total net income (the equity portion) andtotal retained earnings (the equity portion) do not have significant impact on the consolidated financial statements.
Name of an entity that is not accounted for as our subsidiary even though the Company owns the majority vote:
Ichthys LNG Pty Ltd(Reason for not accounted for as our subsidiary)
The Company owns the majority vote of Ichthys LNG Pty Ltd through INPEX Holdings Australia Pty Ltd. However,since both parties’ affirmative votes are required for important resolutions based on the shareholders agreement between
INPEX Holdings Australia Pty Ltd and TOTAL E&P Holding Ichthys, Ichthys LNG Pty Ltd is considered to be an affiliate
accounted for by the equity method.
2. Application of equity method
Number of non-consolidated subsidiaries accounted for by the equity method: None
Number of affiliates accounted for by the equity method: 19
Names of major affiliates:
Angola Block 14 B.V., MI Berau B.V., Angola Japan Oil Co., Ltd., INPEX Offshore North Campos, Ltd. and Ichthys LNG
Pty Ltd
During this period:
Number of companies newly included as affiliates accounted for by the equity method : 4
Details for the above changes:
1) Japan South Sakha Oil Co., Ltd., IT MARINE TRANSPORT PTE. LTD., Ocean Breeze LNG Transport S.A.
have been newly included due to establishment of the companies.
2) Greenland Petroleum Exploration Co., Ltd. has been newly included due to an increase in materiality of the company.
Names of major non-consolidated subsidiaries and affiliates not accounted for by the equity method:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C.V., TELNITE CO., LTD. and Tangguh project
management Co., Ltd.

21

(Reason for not applying the equity method)
These subsidiaries and affiliates are not accounted for by the equity method because their total net income (the equity
portion) and total retained earnings (the equity portion) do not have significant impact on the consolidated financial
statements.
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 its closing date. For certain affiliates, however,
the Company used financial statements prepared for consolidation purposes as of the consolidated closing date.

3. Closing dates for the fiscal year of consolidated subsidiaries
For the 48 companies for which the closing dates 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 12 companies including, but not limited, Japan Oil Development, Co., Ltd., INPEX Southwest Caspian Sea, Ltd.,and INPEX North Caspian Sea, Ltd., INPEX Holdings Australia Pty Ltd and INPEX Ichthys Pty Ltd, we use their financial
statements for the year ended on the consolidated closing date even though their closing date is December 31.

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 the applicable income taxes, included directly in net assets. Cost of securities sold is determined by themoving-average method.
Without a determinable market value
Other securities without a determinable market value are stated at cost determined by the moving-average method.
(b) Derivatives
Fair value(c) Inventories
Overseas inventories
Carried mainly at cost, determined by the average cost method (balance sheet value is carried at the lower of cost or
market)Domestic inventories
Carried mainly at cost, determined by the moving-average method (balance sheet value is carried at the lower of cost or
market)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 other tangible 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 years(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-of-production method.
Other
Other intangible assets are mainly amortized by the straight-line method.
Software for internal use is amortized over 5 years.

22(c) Leased assets
Leased assets for financing lease transactions whose ownership are not to be transferred:
Depreciation of these assets is calculated based on the straight-line method over the lease period assuming no residual
value.
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 withrespect to ordinary receivables, plus an estimate of uncollectible amounts determined by reference to specific doubtfulreceivables from customers which are experiencing financial difficulties.
(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.
(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 amount based on the net assets of the investees.
(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.
(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at expected payment amount for the fiscal year.
(f) Provision for loss on business
Provision for loss on business is provided for future potential losses on crude oil and natural gas development, production
and sales business individually estimated for each project.
(g) Accrued special repair and maintenanceAccrued special repair and maintenance are provided for planned major repair and maintenance activities on tanks incertain subsidiaries at the amount being accumulated through the next activity.
4) Accounting for retirement benefits(a) Method of recording expected retirement benefits in proper terms
When calculating retirement benefit obligations, the straight-line method is used for attributing expected retirement benefits
to periods through March 31,2014. Because certain subsidiaries are classified as small enterprises, a simplified method (theamount which would be required to be paid if all active employees voluntarily terminated their employment as of thebalance sheet date) is applied for the calculation of the retirement benefit obligation of the subsidiaries.
(b) Method of expenses for actuarial differences
Actuarial gains and losses are charged or credited to income as incurred.
5) 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 in foreign currencies are translated into yen at the exchange rates prevailingat the balance sheet date. The resulting exchange gain or loss is credited or charged to income.
The revenue and expense accounts of the overseas 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 at the balance sheet
date. Translation differences are presented as a component of translation adjustments and minority interests.
6) Accounting for major hedge transactions(a) Hedge accounting
The deferred hedge accounting method is used for hedging transactions. The allocation method is applied to foreignexchange forwards that meet certain criteria. The special treatment is applied to the interest rate swaps that meet certain
criteria.
(b) Hedging instruments and hedged items(Foreign currency)
Hedging instruments: Foreign exchange forward transactions
Hedged items: Forecasted transactions in foreign currencies(Interest rate)
Hedging instruments: Interest rate swap transactions
Hedged items: Interest payments on borrowings

23

(c) Hedging policy
The nominal amount of the derivative transaction is limited to within the scope of actual demand, and the Company does
not engage in speculative derivative transactions.
(d) Hedge effectiveness assessment method
The Company does not perform hedge effectiveness assessment of foreign exchange forward transactions since the main
conditions match with forecasted transactions in foreign currencies. The Company does not perform hedge effectivenessassessment of interest rate swap transactions since the special treatment is applied.
7) Amortization of Goodwill
Goodwill is amortized by the straight-line method over 20 years.
8) Scope of cash and cash equivalents in consolidated statement of cash flows
Cash (cash and cash equivalents) in the consolidated statement of cash flows 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.
9) 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 are recorded as “Recoverable accounts under production sharing” so long as they are recoverable under
the terms of the relevant contract. When the Company receives crude oil and natural gas in accordance with the contract,
an amount corresponding to the purchase costs of the products (i.e., a cost recovery portion of the investments) is released
from this account.

24

(Changes in Accounting Policies)
Effective the end of the year ended March 31, 2014, the Company has applied the “Accounting Standard for Retirement
Benefits” (Accounting Standars Board of Japan Statement No. 26, issued on May 17, 2012) and the “Guidance on AccountingStandard for Retirement Benefits” (ASBJ Guidance No. 25, issued on May 17, 2012), except for the provisions stated in Clause
35 of the Accounting Standard for Retirement Benefits and Clause 67 of the Guidance on Retirement Benefits.
The Company has changed its accounting method to post retirement benefit obligations less plan assets as “Net defined benefit
liability”.
As a result of the change, the consolidated balance sheet as of March 31, 2014 shows a net defined benefit liability of ¥7,793
million. The change does not affect accumulated other comprehensive income because actuarial gains and losses are charged or
credited to income as incurred.
(Changes in the Presentation)(Consolidated Statement of Income)“Gain on sales of investment securities” and “Gain on transfer of mining rights”, previously presented separately in otherincome, are included in “Other” since they have become less significant. “Gain on sales of marketable securities”, previously
included in “Other” in other income, is presented separately since it has become more significant.
As a result, ¥6,477 million which was recorded as “Other” in other income on the consolidated statement of income in theprevious fiscal year is reclassified as ¥82,059 million of “Other”,which includes ¥25,449 million of “Gain on sales ofinvestment securities” and ¥50,173 million of “Gain on transfer of mining rights”, and ¥40 million of “Gain on sales ofmarketable securities”.
(Consolidated Statement of Cash Flows)“Gain on transfer of mining rights” and “Gain on sales of investment securities”, previously presented separately in cash flows
from operating activities, are included in “Other” since they have become less significant. “Proceeds from transfer of mining
rights”, previously presented separately in cash flows from investment activites, is included in “Other” since it has become lesssignificant. As a result, ¥(50,173) million and ¥(25,449) million which were recorded as “Gain on transfer of mining rights”
and “Gain on sales of investment securities” in cash flows from operating activities on the consolidated statement of cash
flows in the previous fiscal year are reclassified as “Other”, and ¥56,799 million which was recorded as “Proceeds fromtransfer of mining rights” in cash flows from investing activities is reclassified as “Other”.

25

更新日時:2014/05/02 14:55:00

ファイル名:④-2H26.3b連結BSPLCF注記【済】p26-32.doc

印刷日時:14/05/07 16:10(Consolidated Balance Sheet)*1 Major accounts included in inventories
As of March 31, 2013

As of March 31, 2014

Millions of yen

Millions of yen

5,651

8,905

70

551

9,687

16,028Merchandise and finished goods
Work in process
Raw materials and supplies*2 Accumulated depreciation of tangible fixed assets
As of March 31, 2013
Accumulated depreciation of tangible fixed assets

As of March 31, 2014

¥ 606,742 million¥ 638,744 million*3 The Company has the following investments in subsidiaries and affiliates.
As of March 31, 2013

As of March 31, 2014

Millions of yen

Millions of yen

110,654

112,576

15,75875

80

78

Investment securities (equities)(of which investment in jointly controlled entities)
Other (investments and other assets)*4 Assets provided as collateral and collateral-backed debt are as follows:Collateralized Assets
As of March 31, 2013

As of March 31, 2014

Millions of yen

Millions of yen

Buildings and structures

2,091 (2,091)

2,082 (2,082)

Wells

1,213 (1,213)

181 (181)

Machinery, equipment and vehicles

8,974 (8,974)

8,026 (8,026)

Other (tangible fixed assets)
Investment securities
Other (investments and other assets)
Total

26

0 (0)

― (―)

7,395 (―)

790 (―)

226 (―)

221 (―)

19,901 (12,279)

11,301 (10,289)

更新日時:2014/05/02 14:55:00

ファイル名:④-2H26.3b連結BSPLCF注記【済】p26-32.doc

印刷日時:14/05/07 16:10

Secured debt
As of March 31, 2013

As of March 31, 2014

Millions of yen

Millions of yen

996 (980)

945 (929)

Accounts payable-other

5,118 (4,733)

385 (―)

Long-term debt

1,437 (1,403)

491 (474)

16 (―)

16 (―)

7,569 (7,116)

1,839 (1,403)

Short-term loans

Others (long-term liabilities)
Total

Amounts in parentheses () above represent foundation collateral and liabilities.

In addition, the followings are pledged as collateral for the Ichthys LNG project financing and the BTC pipeline project financing.
The Ichthys LNG project financing
As of March 31, 2013

Cash and deposits

Millions of yen

Millions of yen

3,602

7,835

160

―

64,631

5,429

Accounts receivable-other
Other (current assets)

As of March 31, 2014

Land

133

145

Construction in progress

172,377

382,224

Investment securities

15,758――27,308

256,662

422,943

Long-term loans receivable
Total
The BTC pipeline project financing
As of March 31, 2013
Investment securities

As of March 31, 2014

¥ 5,239 million¥ 6,378 million*5 Accumulated advanced depreciation deducted from acquisition costs of fixed assets related to contribution and others
As of March 31, 2013

As of March 31, 2014

Millions of yen

Millions of yen

1,393

1,393

Machinery, equipment and vehicles

239

225

Land

84

84

Buildings and structures*6 Loaned investment securities are as follows:
As of March 31, 2013
¥ ― million

Investment securities

27

As of March 31, 2014
¥ 20,064 million

更新日時:2014/05/02 14:55:00

ファイル名:④-2H26.3b連結BSPLCF注記【済】p26-32.doc

印刷日時:14/05/07 16:10

7 Contingent liabilities(1) The Company and its consolidated subsidiaries are contingently liable as guarantors of indebtedness of the following
companies:
As of March 31, 2013

As of March 31, 2014
Millions of yen

Millions of yen

Tangguh Trustee*

15,463

Tangguh Trustee*

15,484

Fujian Tranche *Sakhalin Oil and Gas Development
Co., Ltd.
INPEX Offshore North Campos, Ltd.

5,481

Fujian Tranche *Sakhalin Oil and Gas Development
Co., Ltd.
INPEX Offshore North Campos, Ltd.

5,489

3,460
1,969

Employees (housing loans)

153

2,457
1,617

Employees (housing loans)

112Japan Canada Oil Sands Limited

25

Total
26,529*Debt for investment funds of Tangguh LNG project through MI Berau B. V. and MI Berau Japan Ltd.

25,186(2) Guarantee for derivatives
As of March 31, 2013
Ichthys LNG Pty Ltd¥ (4,872) million

As of March 31, 2014
¥ (17,531) million

The aforementioned derivative transactions are utilized to hedge exchange rate fluctuation risk regarding payments ofdevelopment costs for the Ichthys LNG project. The amount is valuation gain (loss) on the derivatives.

(3) Completion guarantee
In connection with the Ichthys LNG project financing, the Company and other project participants provide lenders with aguarantee of liabilities during the construction phase based on each participating interest in addition to collateralizing its assets.
The portion guaranteed by the Company is as follows:
As of March 31, 2013
Completion guarantee (the Company's portion)¥ 128,863 million

28

As of March 31, 2014
¥ 600,029 million

更新日時:2014/05/02 14:55:00

ファイル名:④-2H26.3b連結BSPLCF注記【済】p26-32.doc

印刷日時:14/05/07 16:10(Consolidated Statement of Income)*1 Major accounts included in selling, general and administrative expenses are as follows:
For the year ended
March 31, 2013

For the year ended
March 31, 2014

Millions of yen

Millions of yen

Personnel expenses

18,636

19,274

Including provision for accrued retirement benefits to employees

2,246

106

132

112

Taxes

7,240

6,786

Freight expenses

7,178

8,953

Depreciation expenses

22,89925,047

Amortization of goodwill

6,760

6,760

Including provision for accrued bonuses to officers*2 Research and development expenses included in general and administrative expenses:
For the year ended
March 31, 2013

For the year ended
March 31, 2014

¥ 98 million¥ 40 million(Consolidated Statement of Comprehensive Income)*1 Reclassification adjustments and income tax effects allocated to each component of other comprehensive income
For the year ended
For the year ended
March 31, 2013
March 31, 2014
Millions of yen
Millions of yen
Unrealized holding gain on securities
Amount recognized during the period
Amount of reclassification adjustment

29,074

20,843(137)(10,473)

Before income tax effect28,936

10,369Amount of income tax effect(1,149)(388)

Unrealized holding gain on securities

27,787

9,981

Amount recognized during the period

24,873(31,329)

Amount of income tax effect(8,103)

10,441

Unrealized gain(loss) from hedging instruments

16,769(20,887)

105,692

176,311(1,964)(14,316)

387

7,642

(1,577)(6,674)

148,671

158,731

Unrealized gain(loss) from hedging instruments

Translation adjustments
Amount recognized during the period
Share of other comprehensive income of affiliates accounted for by the equity
methodAmount recognized during the period
Adjustment for acquisition cost of assets
Share of other comprehensive income of affiliates accounted for by the equity
methodTotal other comprehensive income29

更新日時:2014/05/02 14:55:00

ファイル名:④-2H26.3b連結BSPLCF注記【済】p26-32.doc

印刷日時:14/05/07 16:10(Consolidated Statement of Changes in Net Assets)
For the year ended March 31, 2013
1. Type and number of shares issued and treasury stock(Shares)

Balance as ofApril 1, 2012

Increase

Balance as ofMarch 31, 2013

Decrease

Number of shares
Common stock

3,655,809－－

3,655,809

Class A stock

1

－

－

1

3,655,810－－

3,655,810

Common stock

4,916

－

－

4,916

Total

4,916

－

－

4,916

Cash dividends paid
(Millions of yen)

Dividends
per share(Yen)

Record date

Effective date

14,603

4,000

March 31, 2012

June 27, 2012

0

4,000

March 31, 2012

June 27, 2012

12,7783,500

September 30, 2012

December 3, 2012

0

3,500

September 30, 2012

December 3, 2012

Total
Treasury stock

2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders
June 26, 2012
Board of directors’
meetingNovember 6, 2012

Type ofshare
Commonstock
Class Astock
Commonstock
Class Astock(2) Dividends, whose record date was in the year ended March 31, 2013, and whose effective date will be in the next
fiscal year
Cash dividends
Dividends
Type of
Source of
Resolution
paid
per share
Record date
Effective dateshare
dividends(Millions of yen)
(Yen)
CommonRetained
Ordinary general
12,7783,500 March 31, 2013
June 26, 2013stock
earnings
meeting ofshareholders
Class A
Retained
03,500 March 31, 2013
June 26, 2013
June 25, 2013stock
earnings30

更新日時:2014/05/02 14:55:00

ファイル名:④-2H26.3b連結BSPLCF注記【済】p26-32.doc

印刷日時:14/05/07 16:10

For the year ended March 31, 2014
1. Type and number of shares issued and treasury stock(Shares)

Balance as ofApril 1, 2013

Increase

Balance as ofMarch 31, 2014

Decrease

Number of shares
Common stock

3,655,809

Class A stock
Total

1,458,667,791―

1,462,323,600

1

―

―

1

3,655,810

1,458,667,791―

1,462,323,601

4,916

1,961,484―

1,966,400

Treasury stock
Common stock

Total
4,916
1,961,484
1,966,400―(Note): The increases of 1,458,667,791 shares in total number of shares and 1,961,484 shares in treasury stock were
derived from a stock split at a ratio of 1:400 of common stock.
2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders
June 25, 2013
Board of directors’
meetingNovember 7, 2013

Type ofshare
Commonstock
Class Astock
Commonstock
Class Astock

Cash dividends paid
(Millions of yen)

Dividends
per share(Yen)

12,7783,500

March 31, 2013

June 26, 2013

0

3,500

March 31, 2013

June 26, 201313,1433,600

September 30, 2013

December 2, 2013

0

3,600

September 30, 2013

December 2, 2013

Record date

Effective date(2) Dividends, whose record date was in the year ended March 31, 2013, and whose effective date will be in the next
fiscal year
Cash dividends
Dividends
Type of
Source of
Resolution
paid
per share
Record date
Effective dateshare
dividends(Millions of yen)
(Yen)
CommonRetained
Ordinary general
13,143
9 March 31, 2014
June 26, 2014stock
earnings
meeting ofshareholders
Class A
Retained
03,600 March 31, 2014
June 26, 2014
June 25, 2014stock
earnings(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as theeffective date. Dividends per share, whose effective date will be June 26, 2014 is calculated with the numberof shares after the stock split was conducted. For Class A stock (which is not listed), no stock split was
implemented. The article, which shows that dividends of Class A stock are equivalent to dividends of acommon stock prior to the stock split, is specified in the Articles of Incorporation.

31

更新日時:2014/05/02 14:55:00

ファイル名:④-2H26.3b連結BSPLCF注記【済】p26-32.doc

印刷日時:14/05/07 16:10(Consolidated Statement of Cash Flows)*1 Cash and cash equivalents at the end of the period are reconciled to the account reported in the consolidated balance sheet
as follows:
For the year ended
March 31, 2013
Millions of yen

For the year ended
March 31, 2014
Millions of yen

Cash and deposits

483,814650,187

Time deposits for more than three months and others(284,469)(555,947)

Marketable securities (commercial paper)―

15,291Marketable securities (MMF and others)

513

8,000

199,858

117,530

Cash and cash equivalents32更新日時:2014/05/02 16:27:00

ファイル名:④-3H26.3cセグメント情報等【済】p33-37.doc

印刷日時:14/05/07 16:10(Segment Information and Others)(Segment information)
1.

Overview of reportable segments

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

2. 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, 2013 (April 1, 2012 through March 31, 2013)(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

118,936

485,275

85,540520,835

5,944

1,216,533―

1,216,533

―

―

―

―

―

―

―

―

Total

118,936

485,275

85,540520,835

5,944

1,216,533―

1,216,533

Segment income (loss)

28,568281,62241,751

357,343(6,089)703,196(9,748)693,447

Segment assets

265,467

690,763526,519

266,649

188,208

1,937,607

1,678,551

3,616,158

Total

*1

*2

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

Other items
Depreciation and amor17,602
17,032
9,065
5,850
1,012
50,563
1,351
51,915tization
Amortization of good(192)
(192)
6,952
6,760
―
―
―
―
will
Investment to affiliates
1,856
46,81753,243
4,159
106,076
106,076――
accounted for by theequity method
Increase of tangible
fixed assets and intan24,655 203,852
1,024
20,594
108,373358,500
1,486
359,986
gible assets
Note: 1. (1) Adjustments of segment income of ¥(9,748) million include elimination of intersegment transactions of ¥225 million
and corporate expenses of ¥(9,974) million. Corporate expenses are mainly amortization of goodwill and general administrative expenses not attributable to a reportable segment.
(2) Adjustments of segment assets of ¥1,678,551 million include elimination of intersegment transactions of ¥(2,551)
million and corporate assets of ¥1,681,103 million. Corporate assets are mainly goodwill, cash and deposits, marketable securities, investment securities and assets concerned with the administrative divisions not attributable to a reportable segment.
(3) Adjustments of depreciation and amortization of ¥1,351 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 ¥1,486 million consist mainly of capital
expenditure to corporate assets.
2. Segment income was reconciled with consolidated operating income.

33

更新日時:2014/05/02 16:27:00

ファイル名:④-3H26.3cセグメント情報等【済】p33-37.doc

印刷日時:14/05/07 16:10

For the year ended March 31, 2014 (April 1, 2013 through March 31, 2014)(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

120,268

485,068

96,341

621,512

11,435

1,334,625―

1,334,625

―

―

―

―

―

―

―

―

Total

120,268

485,068

96,341

621,512

11,435

1,334,625―

1,334,625

Segment income (loss)

22,770264,849

42,600421,183(7,645)

743,758(10,148)

733,610Segment assets

286,414 1,038,264

535,046

288,600

265,347

2,413,673

1,624,465

4,038,139

Total

*1

*2

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

Other items
Depreciation and amor18,837
8,821
10,417
6,772
4,672
49,521
1,394
50,916
tization
Amortization of good(192)
(192)
6,952
6,760
―
―
―
―
will
Investment to affiliates
1,999
39,12465,183
2,015
108,323
108,323――
accounted for by theequity method
Increase of tangible
fixed assets and intan42,403 285,903
4,072
35,194
51,582
419,157417
419,574
gible assets
Note: 1. (1) Adjustments of segment income of ¥(10,148) million include elimination of intersegment transactions of ¥222 million and corporate expenses of ¥(10,370) million. Corporate expenses are mainly amortization of goodwill and general administrative expenses not attributable to a reportable segment.
(2) Adjustments of segment assets of ¥1,624,465 million include elimination of intersegment transactions of ¥(2,357)
million and corporate assets of ¥1,626,823 million. Corporate assets are mainly goodwill, cash and deposits, marketable securities, investment securities and assets concerned with the administrative divisions not attributable to a reportable segment.
(3) Adjustments of depreciation and amortization of ¥1,394 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 ¥417 million consist mainly of capital expenditure to corporate assets.
2. Segment income was reconciled with consolidated operating income.

34

更新日時:2014/05/02 16:27:00

ファイル名:④-3H26.3cセグメント情報等【済】p33-37.doc

印刷日時:14/05/07 16:10(Relative information)
For the year ended March 31, 2013 (April 1, 2012 through March 31, 2013)
1. Products and service information(Millions of yen)
Crude oil
788,135

Sales to third parties

Natural gas (excluding LPG)
370,528

LPG

Other

27,237

Total

30,631

1,216,533

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

Asia & Oceania
634,787

Other

Total

564,252

17,492

1,216,533

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

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

Australia
235,674

Other
227,357

Total
121,509584,541

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

Sales

Relative reportable segment

PERTAMINA

206,282

Asia & Oceania

Idemitsu Kosan Co.,Ltd.

132,908

Middle East & Africa

For the year ended March 31, 2014 (April 1, 2013 through March 31, 2014)
1. Products and service information(Millions of yen)
Crude oil
858,753

Sales to third parties

Natural gas (excluding LPG)
431,187

LPG

Other

24,226

Total

20,457

1,334,625

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

Asia & Oceania
682,353

Other

620,338

Total
31,933

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

35

1,334,625

更新日時:2014/05/02 16:27:00

ファイル名:④-3H26.3cセグメント情報等【済】p33-37.doc

印刷日時:14/05/07 16:10(2) Tangible fixed assets(Millions of yen)Japan

Australia
248,246

Other
520,976

Total
182,555

951,779

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

Sales

Relative reportable segment

PERTAMINA

217,518

Asia & Oceania

Idemitsu Kosan Co.,Ltd.

156,151

Middle East & Africa(Information on impairment loss from fixed assets by reportable segment)
Disclosure has been omitted because it does not have significant impact on the consolidated financial statements.

36

更新日時:2014/05/02 16:27:00

ファイル名:④-3H26.3cセグメント情報等【済】p33-37.doc

印刷日時:14/05/07 16:10(Information on amortization of goodwill and unamortized balance by reportable segment)
For the year ended March 31, 2013 (April 1, 2012 through March 31, 2013)(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――――(2,547)(2,547)
90,38887,840March 31, 2013
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.
For the year ended March 31, 2014 (April 1, 2013 through March 31, 2014)(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――――(2,355)(2,355)83,43581,080March 31, 2014
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.

(Information on negative goodwill by reportable segment)
None

37

ファイル名:(Financial Instruments)
1. Status of financial instruments
For the year ended March 31, 2013
(1) Policy regarding financial instruments
The Company raises funds for oil and gas development and production, construction or expansion of 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, Japanesecommercial banks, and others. Japan Oil, Gas and Metals National Corporation has provided guarantees for the principal on
certain outstanding amounts of the Company’s long-term loans. The Development Bank of Japan and Japanese commercial
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 rate dependingon the nature of each project. Regarding the financing policy, the Company manages funds mainly from cash on hand andgovernment bonds, which are considered of low-risk and high-liquidity. The Company limits derivative transactions for managing risks of forecasted transactions and portfolio assets, and does not engage in speculative derivative transactions.
(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 is regularly reported to the Exective Committee. For stocks, the Company holds the shares of trading partners and others to establish 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 bonds with short-term maturities byconsidering medium- to long-term cash outflow forecast and 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 development 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 analyzes the impact of interest rate fluctuation at the time of borrowing and once a year, and leverages fixed-rateloans or makes interest rate swap contracts with financial institutions as necessary.
(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 rate 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 foreignexchange 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, the Company endeavours to reduce exchange rate fluctuation
risk by maintaining the position between assets and liabilities in foreign currencies. In addition to planned expenditures inforeign currencies for the Ichthys project and others, the Company manages exchange rate fluctuation risk through derivativetransactions such as foreign exchange forwards and others as necessary.
(Management of derivative transactions)
For the above derivative transactions, the Company follows its derivative transactions management outline. For derivativetransactions exposed to market price fluctuation, market values of these derivatives are regularly reported to the Exective
Committee, and the Company only transacts with financial institutions with high credit ratings to reduce counterparty risks
for the use of derivatives.
(Management of the liquidity risk related to financing)
The finance and accounting division controls cash management based on monthly financing plan prepared by each project
division and secures sufficient 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.

38

ファイル名:For the year ended March 31, 2014
(1) Policy regarding financial instruments
The Company raises funds for oil and gas development and production, construction or expansion of pipelines and LNG terminal primarily from cash flow on hand and from bank loans. Oil and gas development projects are primarily funded fromlong-term loans that the Company has secured from the Japan Bank of International Cooperation, Japanese commercial
banks, and others. Japan Oil, Gas and Metals National Corporation has provided guarantees for the principal on certain outstanding amounts of the Company’s long-term loans. The Development Bank of Japan and Japanese commercial banks havebeen providing long-term loans for the construction or expansion of domestic pipelines and LNG terminal. The Company
generally borrows with variable interest rates, while some loans are with fixed interest rate depending on the nature of eachproject. 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 limits derivative transactions for managing risks of forecasted transactions and portfolio assets, and does not engage in speculative derivative transactions.
(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 is regularly reported to the Exective Committee. For stocks, the Company holds the shares of trading partners and others to establish 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 bonds with short-term maturities byconsidering medium- to long-term cash outflow forecast and 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 development projects and construction or expansion of domestic pipelinesand LNG terminal and others. The borrowing period is determined considering financial prospects of the project and useful
lives of facilities. Loans with variable interest rates are exposed to interest rate fluctuation risk, however, the Company analyzes the impact of interest rate fluctuation at the time of borrowing and once a year, and leverages fixed-rate-loans or makes
interest rate swap contracts with financial institutions as necessary.
(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 rate 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 foreignexchange 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, the Company endeavours to reduce exchange rate fluctuation
risk by maintaining the position between assets and liabilities in foreign currencies. In addition to planned expenditures inforeign currencies for the Ichthys project and others, the Company manages exchange rate fluctuation risk through derivativetransactions such as foreign exchange forwards and others as necessary.
(Management of derivative transactions)
For the above derivative transactions, the Company follows its derivative transactions management outline. For derivativetransactions exposed to market price fluctuation, market values of these derivatives are regularly reported to the Exective
Committee, and the Company only transacts with financial institutions with high credit ratings to reduce counterparty risks
for the use of derivatives.
(Management of the liquidity risk related to financing)
The finance and accounting division controls cash management based on monthly financing plan prepared by each project
division and secures sufficient 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 sheets as of March 31, 2013 and 2014, fair value and the difference between
them are as shown below. Items for which it is extremely difficult to determine market value are not included in the following table (Please refer to Note 2).
As of March 31,2013(Millions of yen)

Carrying value
Fair value
Difference(1) Cash and deposits
483,814483,847
32(2) Accounts receivable-trade117,411
117,411－(3) Marketable securities and investment
808,389
808,389－
securities(4) Long-term time deposits
287,273
289,006
1,733
Total assets
1,696,887
1,698,654
1,766(1) Short-term loans
8,560
8,507
(53)
(2) Long-term debt
466,908
456,403(10,505)
Total liabilities
475,469
464,910(10,558)
31,32931,329Derivatives (*)－(*) Net claims and debts arising from derivative transactions are presented on a net basis. In case the total amount is adebt amount, the above figure is negative.

As of March 31,2014(Millions of yen)

Carrying value
Fair value
Difference(1) Cash and deposits
650,187
654,694
4,506(2) Accounts receivable-trade110,395
110,395－(3) Marketable securities and investment
525,989
525,989－
securities(4) Long-term time deposits
364,103367,841
3,738
Total assets
1,650,675
1,658,920
8,245(1) Short-term loans
21,954
21,744(210)(2) Long-term debt
561,674
551,721(9,952)
Total liabilities
583,628
573,465(10,163)
Derivatives (*)－－－(*) Net claims and debts arising from derivative transactions are presented on a net basis. In case the total amount is adebt amount, the above figure is negative.

Note 1: Methods of calculating of the fair value of financial instruments
Assets(1) Cash and deposits
The fair value of current portion of long-term time deposits included in cash and deposits, is calculated by the same method
as (4) Long-term time deposits. For the other cash and deposits, the relevant carrying value is used since the item is settled
in a short period of time and its market value is almost the same as the carrying value.
(2) Accounts receivable-trade
Since the item is settled in a short period of time and the fair value is almost the same as the carrying value, the relevant carrying value is used.
(3) Marketable securities and investment securities
The fair value of shares is determined by the market prices of exchanges, and the fair value of bonds is determined by market prices of exchanges or the prices presented by financial institutions. For further information on investment securities ofeach holding purpose, please refer to “Securities” section of the notes to consolidated financial statements.
(4) Long-term time deposits
The fair value of long-term deposits is calculated by applying a discount rate to the total of principal and interest. The discount rate is based on the assumed interest rate if a similar new deposit is entered into.
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 the item is settled in a short periodof time and its market value is almost the same as the carrying value.
(2)Long-term debt40

ファイル名: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 the notes to consolidated financial statements.
Note 2: Carrying value of financial instruments for which it is extremely difficult to determine fair value(Millions of yen)
As of March 31, 2013
As of March 31, 2014
Unlisted securities
30,72833,842Preferred securities
5,000
5,000
Stocks of subsidiaries and affiliates
110,654
112,576
These financial instruments are assumed to have no quoted market prices and it is extreamly difficult to determine their fair value,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 forinvestments in exploration at an estimated amount based on the financial position of the investees.
Note 3: Redemption schedules for monetary assets and securities with maturity dates subsequent to March 31, 2013 and 2014 are
as follows
As of March 31,2013(Millions of yen)

483,814
117,411More than 1 year
but less than 5
years
－
－

More than 5
years but lessthan 10 years－－

167,000
33,5008,500
66,000－876,225

185,000
61,50028,197132,100
287,273694,070

31,500－－－－31,5001 year or less
Cash and deposits
Accounts receivable-tradeMarketable securities and investment
securities
Other securities:
Public bonds
Corporate bonds
Other bonds
Other
Long-term time deposits
Total
As of March 31,2014

－
－

－
－
－
－
－
－
(Millions of yen)

650,187
110,395

More than 1 year
but less than 5
years
－
－

More than 5
years but lessthan 10 years－－

66,00018,50030,741
66,003－
941,828

80,00051,80015,43866,096364,103
577,437

22,500－－－－22,5001 year or less
Cash and deposits
Accounts receivable-tradeMarketable securities and investment
securities
Other securities:
Public bonds
Corporate bonds
Other bonds
Other
Long-term time deposits
Total

More than 10
years

More than 10
years
－
－

－
－
－
－
－
－

Note 4: Maturities for long-term loans payable, leased liabilities and other interest-bearing debt subsequent to March 31, 2013
and 2014 are as follows
As of March 31,2013(Millions of yen)
1 year or less

Short-term loans
Long-term debt
Lease obligations
Total

1,169
7,391
58
8,618

41

More than 1 year
but less than 5
years－
127,878
127
128,005

More than 5
years but lessthan 10 years－
241,460
11
241,471

More than 10
years－
97,570－97,570ファイル名:As of March 31,2014(Millions of yen)
1 year or less

Short-term loans
Long-term debt
Lease obligations
Total

4,327
17,627
69
22,023More than 1 year
but less than 5
years－
176,159
163
176,322

More than 5
years but lessthan 10 years－
286,436－
286,436More than 10
years－
99,078－99,078(Securities)
1. Other securities as of March 31, 2013 and 2014
As of March 31,2013
Type of securities

Acquisition cost

Securities with carrying values exceeding theiracquisition costs(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Securities with acquisition costs exceeding theircarrying values(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Total

11,937

21,925

9,988

356,283
60,05033,647205,184
667,103357,527
60,15137,549228,948
706,103

1,244
101
3,901
23,76338,99940,45137,824(2,627)

29,13635,000－527
105,116
772,219

28,981
34,966－513
102,285
808,389

(155)
(33)
－
(14)
(2,830)36,169As of March 31,2014
Type of securities

Acquisition cost

Securities with carrying values exceeding theiracquisition costs(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Securities with acquisition costs exceeding theircarrying values(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Total

42

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

16,69829,651

12,952

166,875
70,31635,319139,523
428,733

167,554
70,353
41,735
169,346
478,640

678
37
6,415
29,822
49,90635,69032,324(3,366)

2,025
－
4,999
8,000
50,715479,448

2,025
－
4,999
8,000
47,348525,989

(0)
－
(0)
－
(3,366)
46,540ファイル名:2. Other securities sold for the years ended March 31, 2013 and 2014
For the year ended March 31,2013
Type of securities(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) OtherTotal
For the year ended March 31,2014
Type of securities(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Total

Proceeds from sales－
121,780－－
191
121,972

Proceeds from sales－
72,562－－
76,850149,41243－(Millions of yen)
Loss on sales
－

187
－
－
0
187

－
－
－
－
－

Gain on sales－(Millions of yen)
Loss on sales
－

181
－
－
10,322
10,503－－－－－Gain on sales

ファイル名:(Derivative Transactions)
1. Derivatives not subject to hedge accounting
As of March 31, 2013
None
As of March 31, 2014
None
2. Derivatives subject to hedge accounting(1) Derivatives related to foreign currency
As of March 31, 2013
Hedge accounting
method(Millions of yen)

Principal items
Contract
Due after one
Type of derivatives
hedgedamountsyear
Foreign exchange
Forecasted
Deferred hedge
forwards
transactions
157,613－accounting
Buy
in foreign
USD
currencies(*) Fair value is calculated based on the price obtained from the counterparty financial institutions.

Fair value
31,329As of March 31, 2014
None(2) Derivatives related to interest rate
As of March 31, 2013
Hedge accounting
method(Millions of yen)Type of derivatives

Principal
items hedged

Contract
amounts

Due after one
year

Fair value

Interest rate swaps
Long-term
(*)
4,820
4,760
payment fixed,
debt
receipt fluctuated(*) Fair value of derivatives for which special treatment of interest rate swaps is applied is included in the fair value of
long-term debt since the interest rate swap is treated together with long-term debt subject to hedging.

Special treatment ofinterest rate swaps

As of March 31, 2014
Hedge accounting
method(Millions of yen)Type of derivatives

Principal
items hedged

Contract
amounts

Due after one
year

Fair value

Interest rate swaps
Long-term(*)
payment fixed,
4,760
4,760
debt
receipt fluctuated(*) Fair value of derivatives for which special treatment of interest rate swaps is applied is included in the fair value of
long-term debt since the interest rate swap is treated together with long-term debt subject to hedging.

Special treatment ofinterest rate swaps

44ファイル名:④-6H26.3ｆ連結一株後発開示の省略【済】p45-46.doc

更新日時:2014/05/07 8:15:00

印刷日時:14/05/07 16:11(Per Share Information)

Net assets excluding minority interests per share, net income per share and the calculation basis are as follows:
For the year ended
March 31, 2014

For the year ended
March 31, 2013(1)

Net assets excluding minority interests per share¥ 1,699.10
For the year ended
March 31, 2013(2)

Net income per share¥ 1,911.25
For the year ended
March 31, 2014

¥ 125.29¥ 125.78

182,961

183,690

0

0

(0)

(0)

182,961

183,690

1,460,357,200

1,460,357,200(Calculation basis)
Net income (Millions of yen)Amount not attributable to common shareholders(Millions of yen)(of which Net income attributable to Class A stock)
Net income attributable to common shareholders(Millions of yen)
Average number of common stock (shares)(Note): 1. The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date.
Net assets excluding minority interests per share and net income per share are calculated based on the assumption thatthe stock split was conducted on April 1, 2012.
2. Diluted net income per share is not presented because there are no dilutive potential of shares of common stock.

45

ファイル名:④-6H26.3ｆ連結一株後発開示の省略【済】p45-46.doc

更新日時:2014/05/07 8:15:00

印刷日時:14/05/07 16:11(Significant Subsequent Events)
None(Omissions of Disclosure)With respect to information for standards issued but not effective, leases, related party transactions, tax accounting, asset
retirement obligations and retirement benefits plan respective disclosure has been omitted because it does not havesignificant impact on the consolidated financial statements.

46

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

As of March 31, 2013

As of March 31, 2014

Cash and deposits

430,958

612,825

Accounts receivable-trade28,442

34,987

Marketable securities

272,080

201,000

2,516

2,536

55

57

Raw materials and supplies

1,628

8,119

Advance payments-trade15

21

Prepaid expenses

738

693

Short-term loans receivable from subsidiaries andaffiliates

45,213

92,468Other

45,05543,081

Allowance for doubtful accounts(2,315)(4,766)

Total current assets

824,389

991,025

Buildings, net

9,556

17,844Structures, net

86,765

121,032

Wells, net

1,786

477

Machinery and equipment, net

25,487

65,11039

34

Tools, furniture and fixtures, net

1,605

2,693

Land

16,76916,933152

198

Construction in progress

93,54525,370Total tangible fixed assets

235,708

249,693

90,38883,435

0

1

Software

2,020

2,408

Other

1,603

4,901

Total intangible assets

94,012

90,746(Assets)
Current assets

Finished goods
Work in process and partly-finished construction

Fixed assets
Tangible fixed assets

Vehicles, net

Leased assets, net

Intangible assets
Goodwill
Mining right47

(Millions of yen)Accounts

As of March 31, 2013

As of March 31, 2014

527,778

326,583

1,188,459

1,490,660

Investments in capital

00Investments in capital of subsidiaries and affiliates

00Long-term loans receivable

2―

Long-term loans receivable from employees

2230

85,872

98,009550425

Long-term time deposits

287,273

364,103

Recoverable accounts under production sharing

110,072

112,313

Other

18,596

12,451

(97)

(103)

Investments and other assets
Investment securities
Investments in stock of subsidiaries and affiliates

Long-term loans receivable from subsidiaries andaffiliates
Long-term prepaid expenses

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

(673)

(732)

(194,348)(193,110)

Total investments and other assets

2,023,506

2,210,632

2,353,227

2,551,072

3,177,617

3,542,098

Accounts payable-trade

3,524

3,760

Current portion of long-term debt

3,616

5,565

43

56

Accounts payable-other32,136

13,950Accrued expenses

2,863

3,076

Income taxes payable

18,42821,196

Deferred tax liabilities

597

1,111

Advances received

8630

Deposits payable

367

390

797,757

976,253

Accrued bonuses to officers

110

97

Asset retirement obligations

845

845

Other

31,345139

Total current liabilities

891,725

1,026,473

Total fixed assets
Total assets(Liabilities)
Current liabilities

Lease obligations

Deposits received from subsidiaries and affiliates

48

(Millions of yen)Accounts

As of March 31, 2013

As of March 31, 2014

153,671203,077

114

149

Deferred tax liabilities

5,973

5,306

Accrued retirement benefits to employees

8,156

7,371

Provision for loss on business
Provision for loss on business of subsidiaries
and affiliates

3,705

6,977

14,50915,424

Asset retirement obligations

2,219

2,206

Other

1,414

797

189,764

241,310

1,081,489

1,267,783

290,809290,809

Legal capital surplus

1,023,802

1,023,802

Total capital surplus

1,023,802

1,023,802

Reserve for advanced depreciation of
non-current assets
Reserve for special account for advanced
depreciation of non-current assets

－

18

－

50

Reserve for special depreciation

647

13,044

Reserve for overseas investment loss

38,60338,542

Mine prospecting reserve

8,581

8,815

704,104

859,882

751,936920,354(5,248)(5,248)2,061,300

2,229,718

Unrealized holding gain on securities

34,82744,595

Total valuation, translation adjustments and others

34,82744,5952,096,127

2,274,314

3,177,617

3,542,098

Long-term liabilities
Long-term debt
Lease obligations

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

Retained earnings
Other retained earnings

Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation, translation adjustments and others

Total net assets
Total liabilities and net assets49

(2) Non-Consolidated Statement of Income(Millions of yen)
For the year ended
March 31, 2013

Accounts

For the year ended
March 31, 2014

Net sales

399,496456,325

Cost of sales

173,695

199,009

Gross profit

225,800

257,316

175

3,656

Selling, general and administrative expenses

44,347

43,824

Operating income

181,278

209,835

Interest income

4,557

9,393

Interest income on securities

2,099

1,560

Dividend income

69,27656,027

Foreign exchange gain

20,84928,025

Other

5,192

22,998

101,975

118,004

Interest expense

2,000

4,747

Provision of allowance for investment loss
in exploration

23,402

9,359

Provision for loss on business

3,705

3,272

Provision for loss on business of
subsidiaries and affiliates

2,526

1,264

Other

4,249

4,525

Total other expenses

35,88523,169Ordinary income

247,369

304,670

Income before income taxes

247,369

304,670

Income taxes-current

99,192

110,866

Income taxes-deferred

1,087

(535)

Total income taxes

100,279

110,330

Net income

147,090

194,339

Exploration expenses

Other income

Total other income
Other expenses

50

(3) Non-Consolidated Statement of Changes in Net Assets
For the year ended March 31, 2013
(Millions of yen)
Shareholders' equity
Capital Surplus

Retained earnings
Other retained earnings

Commonstock

Balance at the beginningof the period

290,809

Legal capitalsurplus

Total capitalsurplus1,023,802

1,023,802

Reserve foradvanceddepreciation of
non-current
assetsReserve for
special accountfor advanced
depreciation of
non-current
assetsReserve for
specialdepreciation

Reserve foroverseas
investment loss

―

―

―

40,869Changes during the period
Provision of reserve foradvanced depreciationof non-current assets
Provision of reserve for
special account foradvanced depreciation of
non-current assets
Provision of reserve for
special depreciation

―

―

647

Reversal of reserve for
special depreciation―

Reversal of reserve foroverseas investment loss

(2,266)

Provision of mineprospecting reserve
Reversal of mineprospecting reserve
Cash dividends paid
Net income
Other changes in items
other than those inshareholders' equity(net)Total changes during theperiodBalance at the end of theperiod

―

―

―

―

―

647

(2,266)

290,809

1,023,802

1,023,802

―

―

647

38,60351

(Millions of yen)
Valuation, translation
adjustments and others

Shareholders' equity
Retained earnings
Other retained earnings
Mine
prospecting
reserve
Balance at the beginningof the period

9,291

Retainedearnings
brought
forward

Total
Total retained Tresury stock Shareholders'equityearnings(5,248)

1,941,592

Unrealized
holding gain
on securities

7,198

Total
valuation, Total net assets
translation
adjustments
and others

582,067

632,227

7,198

1,948,790

―

―

―

―

―

―

(647)

―

―

Reversal of reserve for
special depreciation

―

―

―

Reversal of reserve foroverseas investment loss

2,266

―

―

8,560

(8,560)――(9,269)

9,269

―

―

Cash dividends paid

(27,381)(27,381)(27,381)(27,381)Net income

147,090147,090147,090147,090

Changes during the period
Provision of reserve foradvanced depreciationof non-current assets
Provision of reserve for
special account foradvanced depreciation of
non-current assets
Provision of reserve for
special depreciation

Provision of mineprospecting reserve
Reversal of mineprospecting reserve

Other changes in items
other than those inshareholders' equity(net)Total changes during theperiodBalance at the end of theperiod27,62827,62827,628(709)

122,037

119,708―

119,708

27,62827,628147,337

8,581

704,104

751,936(5,248)2,061,300

34,827

34,8272,096,12752

For the year ended March 31, 2014
(Millions of yen)
Shareholders' equity
Capital Surplus

Retained earnings
Other retained earnings

Commonstock

Balance at the beginningof the period

290,809

Legal capitalsurplus

Total capitalsurplus1,023,802

1,023,802

Reserve foradvanceddepreciation of
non-current
assetsReserve for
special accountfor advanced
depreciation of
non-current
assetsReserve for
specialdepreciation

Reserve foroverseas
investment loss

―

―

647

38,603

Changes during the period
Provision of reserve foradvanced depreciationof non-current assets
Provision of reserve for
special account foradvanced depreciation of
non-current assets
Provision of reserve for
special depreciation

18

50

12,490

Reversal of reserve for
special depreciation(92)

Reversal of reserve foroverseas investment loss

(60)

Provision of mineprospecting reserve
Reversal of mineprospecting reserve
Cash dividends paid
Net income
Other changes in items
other than those inshareholders' equity(net)Total changes during theperiodBalance at the end of theperiod

―

―

―

18

50

12,397(60)

290,809

1,023,802

1,023,802

18

50

13,04438,54253

(Millions of yen)
Valuation, translation
adjustments and others

Shareholders' equity
Retained earnings
Other retained earnings
Mine
prospecting
reserve
Balance at the beginningof the period

8,581

Retainedearnings
brought
forward

Total
Total retained Tresury stock Shareholders'equityearnings(5,248)2,061,300

Unrealized
holding gain
on securities

34,827

Total
valuation, Total net assets
translation
adjustments
and others

704,104

751,936

34,8272,096,127

ሺ18)

―

―

ሺ50)

―

―

ሺ12,490)――

Reversal of reserve for
special depreciation

92

―

―

Reversal of reserve foroverseas investment loss

60

―

―

8,832

(8,832)――

ሺ8,598)

8,598

―

―

Cash dividends paid

ሺ25,921)(25,921)

ሺ25,921)

ሺ25,921)

Net income

194,339

194,339

194,339

194,339

Changes during the period
Provision of reserve foradvanced depreciationof non-current assets
Provision of reserve for
special account foradvanced depreciation of
non-current assets
Provision of reserve for
special depreciation

Provision of mineprospecting reserve
Reversal of mineprospecting reserve

Other changes in items
other than those inshareholders' equity(net)Total changes during theperiodBalance at the end of theperiod

9,768

9,768

9,768

234

155,778

168,418―

168,418

9,768

9,768

178,186

8,815

859,882

920,354

ሺ5,248)2,229,718

44,59544,5952,274,314

54

2ファイル名:(4) Notes to Non-Consolidated Financial Statements(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 segment:
Segment

Category

For the year ended March 31, 2013 For the year ended March 31, 2014

Crude oil
Natural gas
Subtotal
Japan
Petroleum products
IodineElectric power
generation
Crude oil
Asia & Oceania

Natural gas
Subtotal

Eurasia(Europe & NIS)

Crude oil

Middle East & Africa

Crude oil
Crude oil

AmericasNatural gas
Subtotal
Crude oil
Natural gas

Total

Subtotal
Petroleum products
IodineElectric power
generation

1.4 MMbbls(3.9 Mbbls per day)48.8 Bcf(133.7 MMcf per day)10.6 MMboe(29.0 Mboe per day)
157.5 Mkl
(991.0 Mbbls)

1.3 MMbbls(3.6 Mbbls per day)
45.8 Bcf(125.5 MMcf per day)
9.9 MMboe(27.2 Mboe per day)― Mkl(― Mbbls)

444.8 tons

471.9 tons

185.7 millions kWh

214.3 millions kWh

21.3 MMbbls(58.3 Mbbls per day)
233.1 Bcf
(638.7 MMcf per day)
65.3 MMboe(178.9 Mboe per day)
9.2 MMbbls(25.1 Mbbls per day)57.7 MMbbls(158.2 Mbbls per day)
0.2 MMbbls(0.5 Mbbls per day)33.2 Bcf(90.9 MMcf per day)
6.1 MMboe(16.6 Mboe per day)
89.8 MMbbls(245.9 Mbbls per day)315.1 Bcf
(863.4 MMcf per day)
148.8 MMboe(407.8 Mboe per day)
157.5 Mkl
(991.0 Mbbls)
444.8 tons

16.8 MMbbls(46.0 Mbbls per day)234.9 Bcf
(643.5 MMcf per day)61.1 MMboe(167.4 Mboe per day)
9.5 MMbbls(26.1 Mbbls per day)61.2 MMbbls(167.6 Mbbls per day)
0.5 MMbbls(1.5 Mbbls per day)
39.2 Bcf(107.4 MMcf per day)
7.5 MMboe(20.4 Mboe per day)
89.4 MMbbls(244.9 Mbbls per day)
319.9 Bcf
(876.4 MMcf per day)
149.2 MMboe(408.8 Mboe per day)― Mkl(― Mbbls)
471.9 tons

185.7 millions kWh

214.3 millions kWh

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 years 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 120.3 MMbbls (329.7 Mbbls perday) of crude oil, 431.2 Bcf (1,181.2 MMcf per day) of natural gas, and in total 201.5 MMboe (551.9 Mboe per day) for the year
ended March 31, 2013, and 118.5 MMbbls (324.7 Mbbls per day) of crude oil, 434.7 Bcf (1,191.0 MMcf per day) of natural gas,
and in total 200.0 MMboe (548.0 Mboe per day) for the year ended March 31, 2014.
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 place.

55

2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.
3) Actual sales
The following table shows sales by segment:(Millions of yen)Segment

CategoryJapan

Crude oil
Natural gas(excluding LPG)
LPG

For the year ended March 31, 2013
Sales volume

861 Mbbls

9,280

65,429 MMcf

82,43967,106 MMcf

90,454

1,634

8 Mbbls

148 Mbbls

30,631
118,936
12,151 Mbbls

131,032

223,451 MMcf

282,620

219,771 MMcf

329,884

3,659 Mbbls

25,602

2,937 Mbbls

24,152

Notes: 1.
2.

3.
4.

485,275

485,068

9,177 Mbbls

85,5408,697 Mbbls

96,341

Crude oil

57,201 Mbbls

520,835

57,420 Mbbls

621,51255 Mbbls476

43 Mbbls

586

29,912 MMcf

5,468

40,240 MMcf

10,84886,189 Mbbls

788,135

79,171 Mbbls

858,753

318,792 MMcf

370,528

327,117 MMcf

431,187

3,807 Mbbls

27,2372,944 Mbbls

24,226

Crude oil
Natural gas(excluding LPG)
LPG

Total

120,268

177,051

Crude oil

Crude oil
Natural gas(excluding LPG)
Subtotal

Americas74
20,457

19,341 Mbbls

Subtotal
Eurasia(Europe & NIS)
Middle East & Africa

Net sales

4,230

Subtotal

Asia & Oceania

Sales volume

414 Mbbls

Other
Crude oil
Natural gas(excluding LPG)
LPG

Net sales

For the year ended March 31, 2014

5,944

11,435

Other

30,631

20,457

Total

1,216,533

1,334,625

The above amounts do not include the related consumption tax.
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 except those subsidiaries prepared their financial statements for consolidation purpose as of theconsolidation closing date. However, the significant effects of the difference in fiscal periods were properly adjusted inconsolidation.
Sales volumes are rounded to the nearest whole number.
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 they are sold to Japanese, Korean, and Taiwanese customers in the form of LNG.

Customer

For the year ended
March 31, 2013
AmountRatio(Millions of yen)(%)

For the year ended
March 31, 2014
AmountRatio(Millions of yen)(%)

PERTAMINA

206,28217.0

217,518

16.3

Idemitsu Kosan
Co.,Ltd.

132,908

10.9

156,15111.7

56