Consolidated Financial Results for the Six Months ended June 30, 2022 [Japanese GAAP]
August 8, 2022
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
Representative: 1605: Takayuki Ueda, President

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

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

Scheduled date of filing Quarterly Financial Report
Scheduled date of payment of cash dividends: August 10, 2022
: September 1, 2022

Preparation of supplementary explanatory materials
Meeting of quarterly financial results presentation: Yes: Yes (for institutional investors and analysts): Tokyo Stock Exchange(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for the Six Months ended June 30, 2022 (January 1, 2022 - June 30, 2022)(1) Consolidated operating results(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales

Operating income

Net income attributableto owners of parent

Ordinary income

For the six months ended

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

June 30, 2022
June 30, 2021

1,098,476
498,397

120.4
27.2

584,493
223,673

161.3
80.7

626,194
219,845

184.8
47.3

184,462
51,982254.9–(Note): Consolidated comprehensive income: for the six months ended June 30, 2022, ¥691,290 million; [235.3%]
for the six months ended June 30, 2021, ¥206,147 million; [–%]Net income pershare-basic
For the six months ended
June 30, 2022
June 30, 2021

Net income pershare-diluted
Yen

Yen

133.0635.60––(2) Consolidated financial position
Total assets

Net assets

Net assets excluding non-controllinginterests as a percentage of total assets

Millions of Yen

Millions of Yen%

As of June 30, 2022

6,423,707

4,020,416

58.7

As of December 31, 2021

5,158,196

3,346,409

60.6(Reference): Net assets excluding non-controlling interests: as of June 30, 2022, ¥3,769,384 million
as of December 31, 2021, ¥3,124,065 million

2. Dividends
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
December 31, 2021

–

20.00

–

28.00

48.00

For the year ending
December 31, 2022
For the year ending
December 31, 2022
(forecast)

–

30.00
–

30.00

60.00

(Notes): 1. Changes in projected dividends for the year ending December 31, 2022 from the previous forecast: Yes
2. “Dividends” as stated above refer to common stock. For information regarding Class A stock (not listed), please refer to Exhibit “Dividends of Class A
stock.”
3. For information regarding revision of dividend forecast, please refer to the press release “Announcement of Revision of Consolidated Financial
Forecasts for Fiscal Year Ending December 31, 2022, and Notice of Retained Earnings Dividend (Interim Dividend) and Revision of Year-End
Dividend Forecast” issued today (August 8, 2022).

3. Forecasts for Consolidated Financial Results for the year ending December 31, 2022 (January 1, 2022 - December 31, 2022)(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales
Millions of Yen

For the year ending
December 31, 2022

2,182,000

Operating income% Millions of Yen

75.3

1,133,000% Millions of Yen

91.8

Net income
attributable toowners of parent

Ordinary income

1,255,000% Millions of Yen

90.8

350,000

Net income
per share
%

Yen

56.9

252.47(Notes): 1. Changes in forecasts for consolidated financial results for the year ending December 31, 2022 from the previous forecast: Yes
2. The effect of the acquisition of own shares decided at the meeting of the Board of Directors held on August 8, 2022 is not included in thecalculation of "Net income per share". Regarding more details of the acquisition of own shares, please refer to "Acquisition of the Company's Own
Shares" of "Significant Subsequent Events" on page 14.

Notes(1) Significant changes in scope of consolidation(Changes in the specified subsidiaries during the period due to change in scope of consolidation): None(2) Adoption of accounting treatments which are exceptional for quarterly consolidated financial statements: None(3) Changes in accounting policies, accounting estimates and restatement of corrections
1. Changes in accounting policies resulting from the revision of the accounting standards and other regulations
2. Other changes in accounting policies
3. Changes in accounting estimates
4. Restatement of corrections: Yes: None: Yes: None(Note): Please refer to “2. Consolidated Financial Statements and Principal Notes (4) Notes to Consolidated Financial Statements (Changes in Accounting
Policies) and (Changes in Accounting Estimates)” on pages 11 and 12 for further information.

(4) Number of shares issued (Common stock)
1. Number of shares issued at the end of the period(including treasury stock):
2. Number of treasury stock at the end of the period:
3. Average number of shares:

1,386,667,167 shares as of June 30, 2022
1,462,323,600 shares as of December 31, 2021
910,363 shares as of June 30, 2022
75,805,993 shares as of December 31, 2021
1,386,326,951 shares for the six months ended June 30, 2022
1,460,205,381 shares for the six months ended June 30, 2021

(Note): The shares held by “the Board Incentive Plan Trust” are included in number of treasury stock at end of period.
(As of June 30, 2022: 910,363 shares As of December 31, 2021: 149,593 shares)*This quarterly earnings report is not subject to audit by certified public accountants or audit firms.
*Explanation regarding the appropriate use of estimated consolidated financial results
The aforementioned forecasts are based on the currently available information and contain many uncertainties. The final results might be significantly different
from the aforementioned forecasts due to changes in business conditions including oil and natural gas price levels, production and sales plans, projectdevelopment schedules, government regulations and financial and tax schemes. Regarding the forecasts, please refer to “1. Qualitative Information / Financial
Statements (3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results” on page 4.

Exhibit:
Dividends of Class A stock
Cash dividends per share
At 1st quarter end At 2nd quarter end At 3rd quarter end
For the year ended
December 31, 2021
For the year ending
December 31, 2022
For the year ending
December 31, 2022
(forecast)At fiscal year end

Total

Yen

Yen

Yen

Yen

Yen

–

8,000.00–

11,200.00

19,200.00–

12,000.00–

12,000.00

24,000.00(Notes): 1. The Company conducted a stock split at a ratio of 1:400 of common stock effective October 1, 2013. However, for Class A stock (not listed), no stock
split was implemented. The article specifying that dividends of Class A stock are equivalent to dividends of common stock prior to the stock split isincluded in the Articles of Incorporation.
2. For information regarding revision of dividend forecast, please refer to the press release “Announcement of Revision of Consolidated Financial
Forecasts for Fiscal Year Ending December 31, 2022, and Notice of Retained Earnings Dividend (Interim Dividend) and Revision of Year-End
Dividend Forecast” issued today (August 8, 2022).

Index of the Attachments
1. Qualitative Information ⁄ Financial Statements ...................................................................................................................................... 2(1) Explanation on Consolidated Financial Results ............................................................................................................................... 2(2) Explanation on Consolidated Financial Position.............................................................................................................................. 3(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results ...................................... 4
2. Consolidated Financial Statements and Principal Notes ........................................................................................................................ 5(1) Consolidated Balance Sheet ............................................................................................................................................................. 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .......................................................... 7
Consolidated Statement of Income .................................................................................................................................................... 7
Consolidated Statement of Comprehensive Income .......................................................................................................................... 8(3) Consolidated Statement of Cash Flows............................................................................................................................................ 9(4) Notes to Consolidated Financial Statements .................................................................................................................................. 11(Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern)......................................................................................................................................................................................................... 11(Note on significant changes in shareholders’ equity) ..................................................................................................................... 11(Changes in Accounting Policies) ................................................................................................................................................... 11(Changes in Accounting Estimates) ................................................................................................................................................. 12(Additional Information) ................................................................................................................................................................. 12(Segment Information and Others) .................................................................................................................................................. 13(Significant Subsequent Events) ...................................................................................................................................................... 14
3. Supplementary Information ................................................................................................................................................................. 15(1) Production, Orders Received and Sales Performance .................................................................................................................... 15-1-

1. Qualitative Information ⁄ Financial Statements(1) Explanation on Consolidated Financial Results
Net sales for the six months ended June 30, 2022 increased by ¥600.0 billion, or 120.4%, to ¥1,098.4 billion from thecorresponding period of the previous fiscal year due to an increase in sales price of crude oil and natural gas. Net sales of crude oil
increased by ¥467.8 billion, or 124.6%, to ¥843.2 billion, and net sales of natural gas increased by ¥129.7 billion, or 113.1%, to¥244.6 billion. Sales volume of crude oil increased by 15,502 thousand barrels, or 28.0%, to 70,956 thousand barrels, and sales
volume of natural gas increased by 35,466 million cf, or 17.4%, to 238,760 million cf. Sales volume of overseas natural gas
increased by 33,703 million cf, or 21.0%, to 194,334 million cf, and sales volume of domestic natural gas increased by 47 million
m3, or 4.1%, to 1,190 million m3 (44,426 million cf). The average sales price of overseas crude oil increased by US$33.58, or
53.5%, to US$96.29 per barrel. The average sales price of overseas natural gas increased by US$2.79, or 72.7%, to US$6.63 perthousand cf, and the average sales price of domestic natural gas increased by ¥29.82, or 72.7%, to ¥70.86 per m3. The averageexchange rate of the Japanese yen against the U.S. dollar on consolidated net sales depreciated by ¥15.36, or 14.2%, to ¥123.25 per
U.S. dollar.
The increase of ¥600.0 billion in net sales was mainly derived from the following factors: regarding net sales of crude oil andnatural gas, an increase in sales volume contributing ¥119.5 billion to the increase, an increase in unit sales price contributing¥353.3 billion to the increase, the depreciation of the Japanese yen against the U.S. dollar contributing ¥124.7 billion to theincrease, and an increase in net sales excluding crude oil and natural gas of ¥2.4 billion.
Meanwhile, cost of sales increased by ¥213.7 billion, or 91.4%, to ¥447.5 billion. Exploration expenses increased by ¥11.1 billion,
or 486.7%, to ¥13.3 billion. Selling, general and administrative expenses increased by ¥14.3 billion, or 37.2%, to ¥53.0 billion. As
a result, operating income increased by ¥360.8 billion, or 161.3%, to ¥584.4 billion.
Other income increased by ¥106.4 billion, or 289.8%, to ¥143.1 billion due to posting equity in earnings of affiliates and others.
Other expenses increased by ¥60.9 billion, or 150.2%, to ¥101.4 billion, mainly due to posting modification loss on financial
assets. As a result, ordinary income increased by ¥406.3 billion, or 184.8%, to ¥626.1 billion.
Total amount of current income taxes and deferred income taxes increased by ¥269.3 billion, or 153.0%, to ¥445.3 billion, and net
loss attributable to non-controlling interests was ¥3.6 billion. As a result of the above effects, net income attributable to owners ofparent increased by ¥132.4 billion, or 254.9%, to ¥184.4 billion.
Financial results by segment are as follows:
1) JapanNet sales increased by ¥40.1 billion, or 70.4%, to ¥97.1 billion due to increases in sales volume and sales price of natural gas.
Operating loss was ¥3.6 billion compared with ¥10.4 billion of operating income for the corresponding period of the previous fiscal
year due to an increase in cost of sales.
2) Asia & Oceania
Net sales increased by ¥144.8 billion, or 121.1%, to ¥264.3 billion due to increases in sales volume and sales price of crude oil andnatural gas. Operating income increased by ¥103.2 billion, or 233.2%, to ¥147.5 billion.
3) Eurasia (Europe & NIS)
Net sales increased by ¥124.1 billion, or 230.2%, to ¥178.0 billion due to increases in sales volume and sales price of crude oil.
Operating income increased by ¥81.7 billion, or 624.1%, to ¥94.8 billion.
4) Middle East & Africa
Net sales increased by ¥283.2 billion, or 110.0%, to ¥540.6 billion due to increases in sales volume and sales price of crude oil.
Operating income increased by ¥183.2 billion, or 115.0%, to ¥342.5 billion.
5) Americas
Net sales increased by ¥7.8 billion, or 74.5%, to ¥18.3 billion due to an increase in sales price of crude oil. Operating income
increased by ¥6.5 billion, or 140.4%, to ¥11.1 billion.

-2-(2) Explanation on Consolidated Financial Position
Total assets as of June 30, 2022 increased by ¥1,265.5 billion to ¥6,423.7 billion from ¥5,158.1 billion as of December 31, 2021.
Current assets increased by ¥181.7 billion to ¥700.6 billion due to an increase in accounts receivable-trade and contract assets, andothers. Fixed assets increased by ¥1,083.7 billion to ¥5,723.0 billion due to increases in tangible fixed assets, investments and otherassets, and others.
Meanwhile, total liabilities increased by ¥591.5 billion to ¥2,403.2 billion from ¥1,811.7 billion as of December 31, 2021. Current
liabilities increased by ¥253.4 billion to ¥602.2 billion and long-term liabilities increased by ¥338.0 billion to ¥1,800.9 billion.
Net assets increased by ¥674.0 billion to ¥4,020.4 billion. Total shareholders’ equity increased by ¥144.6 billion to ¥2,825.2
billion. Total accumulated other comprehensive income increased by ¥500.7 billion to ¥944.1 billion and non-controlling interests
in net assets increased by ¥28.6 billion to ¥251.0 billion.
Cash and cash equivalents as of June 30, 2022 totaled ¥268.6 billion reflecting a net increase of ¥77.4 billion, from ¥191.2 billion
as of January 1, 2022.
The status of cash flows from operating, investing, and financing activities and their factors during the six months ended June 30,
2022 are as follows:
1) Cash flows from operating activities
Net cash provided by operating activities amounted to ¥411.0 billion, up ¥232.4 billion year on year. This was mainly due to anincrease in income before income taxes, which was mainly attributable to higher unit sales prices.
2) Cash flows from investing activities
Net cash used in investing activities amounted to ¥383.7 billion, up ¥317.8 billion year on year. This was mainly due to an increasein long-term loans made and an increase in payments for purchases of investment securities.
3) Cash flows from financing activities
Net cash provided by financing activities amounted to ¥12.1 billion compared with ¥125.4 billion of net cash used in for thecorresponding period of the previous fiscal year. This was mainly due to a decrease in net decrease in short-term loans and anincrease in proceeds from long-term debt.

-3-

(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results
Crude oil and natural gas production operations largely progressed steadily, and INPEX revised its consolidated financial forecasts
for the year ending December 31, 2022 due to factors including the upturn in crude oil prices and the depreciation of the Japanese
yen against the US dollar in the six months ended June 30, 2022 and the revision of its crude oil price and exchange rate
assumptions for the year.
Forecasts for consolidated financial results for the year ending December 31, 2022
(Millions of yen)
Net sales

Operating income

Ordinary income

Net income attributableto owners of parent

Previous Forecasts: A

1,851,000

924,000

1,042,000

300,000

Revised Forecasts: B

2,182,000

1,133,000

1,255,000

350,000

331,000

209,000

213,000

50,000

17.9

22.6

20.4

16.7

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

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

Crude oil price (Brent)

Exchange rate

First Half average:

US$95.0/bbl

Second Half average:

US$75.0/bbl

Revised Forecasts
First Half average(actual):Second Half average:

US$104.9/bbl
US$85.1/bbl

・3rd quarter average: US$80.0/bbl

・3rd quarter average: US$95.1/bbl

・4th quarter average: US$70.0/bbl

・4th quarter average: US$75.0/bbl

Full Year average:

US$85.0/bbl

Full Year average:

First Half average:¥120.0/US$

Second Half average:¥120.0/US$

Second Half average:¥126.9/US$

Full Year average:¥120.0/US$

Full Year average:¥125.0/US$

First Half average(actual):

US$95.0/bbl¥123.2/US$

Note: Crude oil prices at which the Company sells products vary depending on crude oil type and differ from Brent crude oil prices. Crude oil price differences
are determined by the quality of each crude oil type, etc., and are also affected by market conditions.

-4-2. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheet(Millions of yen)Accounts

As of December 31, 2021

As of June 30, 2022

(Assets)
Current assets
Cash and deposits

201,765

225,154

Accounts receivable-trade168,224–

Accounts receivable-trade and contract assets–

251,609

Securities–

43,710Inventories

47,81759,439Other

113,161

135,041

Less allowance for doubtful accounts(12,104)(14,298)

Total current assets

518,864

700,657

Buildings and structures, net

163,165

159,943

Wells, net

345,946

416,095

1,418,656

1,680,071

Land

18,666

18,734

Construction in progress

292,836331,248

Other, net

20,57820,0102,259,849

2,626,103

Goodwill

29,55042,297

Other

417,110464,428

Total intangible assets

446,660

506,726

403,356

703,339

1,011,801

1,368,946

Recoverable accounts under production sharing

548,170

527,749

Other

33,417

46,763

(652)

(754)

(61,871)(54,490)(1,400)(1,333)

1,932,821

2,590,219

4,639,332

5,723,049

5,158,196

6,423,707

Fixed assets
Tangible fixed assets

Machinery, equipment and vehicles, net

Total tangible fixed assets
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

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

(Millions of yen)Accounts

As of December 31, 2021

As of June 30, 2022

(Liabilities)
Current liabilities
Accounts payable-trade

14,88831,318

Short-term loans

80,493

105,180

Income taxes payable

51,350161,117

Provision for bonuses

1,386

–

Provision for bonuses to officers

200

70

Provision for loss on business

9,400

13,407

Provision for exploration projects

9,444

10,506

672

3,907

Other

181,051

276,788

Total current liabilities

348,888602,296

Bonds payable

30,00030,000Long-term debt

Asset retirement obligations

Long-term liabilities

1,069,721

1,265,556

Provision for stocks payment

100

160

Provision for special repair and maintenance

650

710

Liability for retirement benefits

7,048

8,142

Asset retirement obligations

258,339

363,694

Other

97,037

132,730

1,462,897

1,800,994

1,811,786

2,403,291

Common stock

290,809290,809

Capital surplus

681,398

681,558

Retained earnings

1,783,841

1,854,228

Treasury stock(75,425)(1,358)2,680,624

2,825,238

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

Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gain (loss) on securities

2,640

7,267

Deferred gain (loss) on hedges(16,171)

9,755

Translation adjustments

456,972

927,122

Total accumulated other comprehensive income

443,441

944,145

222,344251,032

Total net assets

3,346,409

4,020,416

Total liabilities and net assets

5,158,196

6,423,707

Non-controlling interests-6-(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)
For the six months ended
June 30, 2021

Accounts

For the six months ended
June 30, 2022

Net sales

498,397

1,098,476

Cost of sales

233,774

447,536

Gross profit

264,622650,939

Exploration expenses

2,281

13,385

Selling, general and administrative expenses

38,66753,060Operating income

223,673584,493

Interest income

14,49016,513

Dividend income

3,490

8,373

Other income–

101,371

Gain on reversal of allowance for recoverable accounts
under production sharing

4,371

6,779

Other

14,380

10,153

Total other income

36,732

143,191

Interest expense

6,961

9,934

Equity in losses of affiliates

12,978–Foreign exchange loss

10,6871,257–

80,010

Other

9,933

10,287

Total other expenses

40,560101,490

Ordinary income

219,845626,194

Income before income taxes

219,845626,194

Income taxes-current

158,640

431,896

Income taxes-deferred

17,405

13,463

Total income taxes

176,045445,360

Net income

43,800180,834

Net loss attributable to non-controlling interests(8,182)(3,627)

Net income attributable to owners of parent

51,982

184,462

Equity in earnings of affiliates

Other expenses

Modification loss on financial assets-7-

Consolidated Statement of Comprehensive Income(Millions of yen)
For the six months ended
June 30, 2021

Accounts

Net income

For the six months ended
June 30, 2022

43,800180,834

419

4,680

Deferred gain (loss) on hedges(3,137)(6,061)

Translation adjustments

142,905

465,145

22,16046,690162,346

510,455

206,147

691,290

Owners of parent

209,454685,166

Non-controlling interests(3,307)

6,124

Other comprehensive income
Unrealized holding gain (loss) on securities

Share of other comprehensive income of affiliates
accounted for by the equity-method
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to-8-

(3) Consolidated Statement of Cash Flows(Millions of yen)
For the six months ended
June 30, 2021

Accounts

For the six months ended
June 30, 2022

Cash flows from operating activities
Income before income taxes

219,845626,194

Depreciation and amortization

77,249141,167

Amortization of goodwill

3,380

4,309

(4,368)(6,779)

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

(26)

169

Increase (decrease) in other provisions

638

4,838

Increase (decrease) in liability for retirement benefits

79

(444)

(17,981)(24,887)

Interest and dividend income
Interest expense

6,972

9,971

Foreign exchange loss (gain)

10,503

14,988Equity in losses (earnings) of affiliates

12,978(101,371)–

80,01028,263

41,713Modification loss on financial assets
Recovery of recoverable accounts under production sharing(capital expenditures)
Increase in recoverable accounts under production sharing(operating expenditures)
Decrease (increase) in trade receivables(601)(3,942)(19,433)(49,578)

Decrease (increase) in inventories(6,948)(6,393)

Increase (decrease) in trade payables(4,965)

473

(992)

21,649304,594

752,089

Interest and dividends received

7,664

14,711

Interest paid

(5,812)(5,628)

Income taxes paid

(127,830)(350,121)

Net cash provided by operating activities

178,616

411,051

Other
Subtotal-9-

(Millions of yen)Accounts

For the six months ended
June 30, 2021

For the six months ended
June 30, 2022

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

Proceeds from time deposits–

13,548(63,585)(81,885)

Payments for purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets

89

142

Payments for purchases of intangible assets(1,823)(1,182)

Payments for purchases of investment securities(880)(71,198)

Proceeds from sales and redemptions of investment
securities

16,944

3,523–(31,410)Investment in recoverable accounts under production
sharing (capital expenditures)(13,619)(17,748)

Decrease (increase) in short-term loans receivable

162

474

Long-term loans made(17,119)(306,674)

Collection of long-term loans receivable

15,19596,559Payments for acquisitions of participating interests(1,497)–304

14,609(65,830)(383,708)

Purchase of shares of subsidiaries resulting in change inscope of consolidation

Other
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans(94,307)(1,050)

Proceeds from long-term debt

24,806

113,851

Repayments of long-term debt

(54,929)(72,937)

Proceeds from issuance of bonds

20,000

–

2,013

2,781

(17,515)(38,809)(171)(3,121)(5,355)

11,449(125,459)

12,164

Effect of exchange rate changes on cash and cash equivalents

11,58337,943

Net increase (decrease) in cash and cash equivalents(1,090)77,451

Cash and cash equivalents at beginning of the period

172,405

191,213

Cash and cash equivalents at end of the period

171,315

268,665

Proceeds from non-controlling interests for additional
sharesCash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities- 10 -

(4) Notes to Consolidated Financial Statements(Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern)
For the six months ended June 30, 2022 (January 1, 2022 through June 30, 2022):
None(Note on significant changes in shareholders’ equity)
For the six months ended June 30, 2022 (January 1, 2022 through June 30, 2022):
None(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition and others)
Effective from the beginning of the three months ended March 31, 2022, the Group applied “Accounting Standard for Revenue
Recognition” (Accounting Standards Board of Japan (“ASBJ”) Statement No.29, March 31, 2020, hereinafter referred to as“Revenue Recognition Accounting Standard”) and others. Under the Revenue Recognition Accounting Standard and others,
revenue is recognized when the control of the promised goods or services is transferred to the customer at the amount expected tobe received in exchange for the goods or services.
The main changes resulting from the application of the Revenue Recognition Accounting Standard and others are as follows:
1. Exchange transactions
For exchange transactions involving petroleum products of the same nature and value between entities in the same line ofbusiness, the Group has changed the practice to recognize revenue based on a net amount.
2. Light oil delivery taxes
For light oil delivery taxes which fall under the amount collected for third parties, the Group changed the practice to recognize
revenue at an amount excluding light oil delivery taxes from consideration for transactions.
In accordance with the transitional treatment provided in the provisory clause of paragraph 84 of the Revenue Recognition
Accounting Standard, the cumulative effect at the end of the previous fiscal year from retrospective application of the Revenue
Recognition Accounting Standard is treated as adjustment to retained earnings at the beginning of the three months ended March
31, 2022, and the new accounting policy is applied from the adjusted beginning balance of retained earnings.
As a result, consolidated net sales and cost of sales for the six months ended June 30, 2022 decreased by ¥862 million,
respectively, and there was no effect on operating income, ordinary income, and income before income taxes. In addition, there
was also no effect on the beginning balance of retained earnings for the six months ended June 30, 2022.
Due to the application of Revenue Recognition Accounting Standard and others, “Accounts receivable-trade” under current assetsof the consolidated balance sheet as of December 31, 2021 has been included in “Accounts receivable-trade and contract assets”
under current assets from the consolidated balance sheet as of March 31, 2022. In accordance with the transitional treatment
provided for in paragraph 89-2 of the Revenue Recognition Accounting Standard, figures for the fiscal year ended December 31,
2021 have not been restated in accordance with the new presentation method.
(Application of Accounting Standard for Fair Value Measurement and others)
Effective from the beginning of the three months ended March 31, 2022, the Group applied “Accounting Standard for Fair Value
Measurement” (ASBJ Statement No.30, July 4, 2019, hereinafter referred to as “Fair Value Measurement Accounting Standard”)
and others. In accordance with the transitional treatment provided for in paragraph 19 of the Fair Value Measurement AccountingStandard and paragraph 44-2 of “Accounting Standard for Financial Instruments” (ASBJ Statement No.10, July 4, 2019), theGroup applied prospectively a new accounting policy prescribed by the Fair Value Measurement Accounting Standard and others.
This application has no effect on the consolidated financial statements.

- 11 -

(Changes in Accounting Estimates)(Change in estimates for asset retirement obligation)
Regarding domestic oil and gas production facilities and gas supply and marketing facilities in Japan, the Group has obligations toprevent mine pollution at abandoned well sites after the completion of the production under Japanese Mine Safety Act and restore
sites to their original condition at the time of business termination in accordance with lease contracts.
Among these facilities, certain domestic oil and gas production facilities are operated complementarily and holistically inconnection with the LNG terminal and it had been difficult to formulate reasonable long-term production plan considering thebalance between the production and the inflow of LNG. The Group had planned to operate domestic gas supply and marketing
facilities permanently as highly public infrastructures for energy supply and it had been impossible to determine the timing ofdecommission. For this reason, the Group had not recognized asset retirement obligation since the Group had not been able toestimate it reasonably until the end of the previous fiscal year.
For the three months ended March 31, 2022, the Group reviewed the production and development plan considering theformulation and publication of “Long-term Strategy and Medium-term Business Plan (INPEX Vision@2022)” in February 2022.
As a result, it has been possible to determine reasonably the timing of decommission of domestic oil and gas production facilities
and certain gas supply and marketing facilities that the Group had not recognized asset retirement obligation since it had been
impossible to determine the timing of decommission, and the asset retirement obligation of ¥12,149 million has been recorded.
Due to this change, consolidated operating income, ordinary income and income before income taxes for the six months ended
June 30, 2022 decreased by ¥11,097 million respectively.
(Additional Information)(Modification loss on financial assets)
In accordance with International Financial Reporting Standards (IFRS) 9 “Financial Instruments” implemented to foreign
consolidated subsidiaries, the loss was recognized due to modification of financial assets that do not result in derecognition.

- 12 -

(Segment Information and Others)(Segment Information)
I. For the six months ended June 30, 2021 (January 1, 2021 through June 30, 2021)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Adjustments Consolidated
*1
*2

Japan

Asia &
Oceania

Eurasia(Europe& NIS)

MiddleEast& Africa

Americas57,027

119,561

53,910257,40910,489498,397–498,397

–

5,160

–

–

–

5,160

(5,160)–Total

57,027

124,72253,910257,40910,489503,558(5,160)498,397

Segment income (loss)

10,44744,282

13,098159,275

4,656

231,760(8,086)

223,673

Total

Net sales
Sales to third parties
Intercompany sales and transfers
between segments

Notes: 1. Adjustments of segment income (loss) of ¥(8,086) million are corporate expenses. Corporate expenses are mainly amortization of goodwill and generaladministrative expenses that are not allocated to a reportable segment.
2. Segment income (loss) is reconciled with operating income on the consolidated statement of income.

2. Information on impairment loss from fixed assets, goodwill and other items by reportable segment
None
Ⅱ. For the six months ended June 30, 2022 (January 1, 2022 through June 30, 2022)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Adjustments Consolidated
*1
*2

Japan

Asia &
Oceania

Eurasia(Europe& NIS)

MiddleEast& Africa

Americas97,156

264,362

178,025

540,624

18,306

1,098,476–

1,098,476–

10,197–––

10,197(10,197)–

Total

97,156

274,559

178,025

540,624

18,306

1,108,674(10,197)

1,098,476

Segment income (loss)(3,678)

147,557

94,848342,511

11,192592,431(7,938)584,493Total

Net sales
Sales to third parties
Intercompany sales and transfers
between segments

Notes: 1. Adjustments of segment income (loss) of ¥(7,938) million are corporate expenses. Corporate expenses are mainly amortization of goodwill and generaladministrative expenses that are not allocated to a reportable segment.
2. Segment income (loss) is reconciled with operating income on the consolidated statement of income.

2. Information on impairment loss from fixed assets, goodwill and other items by reportable segment(Significant change in goodwill)
In “Eurasia (Europe & NIS)” segment, the Group included INPEX Norway Co., Ltd. and INPEX Idemitsu Norge AS in thescope of consolidation. As a result, goodwill in the segment increased by ¥16,224 million for the six months ended June 30,
2022. The amount of goodwill is provisionally calculated as the allocation of acquisition cost has not been completed as of June30, 2022.
3. Information on changes in reportable segments and others(Application of Accounting Standard for Revenue Recognition and others)
As stated in the “Changes in Accounting Policies,” effective from the beginning of the three months ended March 31, 2022, theGroup applied the Revenue Recognition Accounting Standard and others, and changed the method of accounting in connection
with revenue recognition. Accordingly, the method of calculating net sales and income (loss) by reportable segment was alsochanged in the same manner. As a result, net sales for the six months ended June 30, 2022 in “Japan” segment decreased by¥862 million compared with the previous method, and there was no effect on segment income (loss).

- 13 -

(Significant Subsequent Events)(Acquisition of the Company's Own Shares)
The Board of Directors of the Company, at its meeting held on August 8, 2022, resolved that the Company will acquire its own
shares pursuant to Article 156, as applied pursuant to paragraph 3, Article 165, of the Companies Act.
1. Reasons for acquisition of own shares
To improve capital efficiency and enhance shareholder returns.
2. Details of the acquisition(1) Type of shares to be acquired:

Common shares(2) Total number of shares to be acquired:

Up to 120 million shares(8.65% of total number of issued shares excluding treasury stock)(3) Total cost of acquisition:(4) Period of acquisition:

Up to 120 billion yen
From August 9, 2022 to December 30, 2022

(5) Method of acquisition:
Market purchases on the Tokyo Stock Exchange
Note: The shares held by the Board Incentive Plan Trust (910,363 shares) are not included in the number of excluded
treasury stocks.

- 14 -

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

Category

For the six months ended
June 30, 2021

Crude oil

0.5 MMbbls(3.0 Mbbls per day)

0.5 MMbbls(2.7 Mbbls per day)Natural gas

20.2 Bcf(111.8 MMcf per day)18.8 Bcf(103.9 MMcf per day)Japan

4.3 MMboe

3.9 MMboe(24.0 Mboe per day)(21.7 Mboe per day)

289.1 tons

286.2 tons

Electric power generation

113.1 million kWh

114.2 million kWh

Crude oil

8.0 MMbbls(44.1 Mbbls per day)

9.3 MMbbls(51.5 Mbbls per day)

167.0 Bcf

213.3 Bcf

(922.4 MMcf per day)

(1,178.2 MMcf per day)

40.3 MMboe

50.5 MMboe(222.5 Mboe per day)(278.9 Mboe per day)Electric power generation

200.5 million kWh

206.1 million kWh

Crude oil

9.0 MMbbls(49.6 Mbbls per day)12.5 MMbbls(69.2 Mbbls per day)

4.6 Bcf

9.6 Bcf(25.2 MMcf per day)

(53.3 MMcf per day)

9.8 MMboe

14.3 MMboe

Subtotal
IodineAsia & Oceania

Natural gas
Subtotal

Eurasia(Europe & NIS)

Natural gas
Subtotal

Middle East & Africa(54.1 Mboe per day)(78.9 Mboe per day)Sulfur

47.8 Mtons

49.3 Mtons

Crude oil

38.4 MMbbls(212.3 Mbbls per day)47.9 MMbbls(264.7 Mbbls per day)

Crude oil
Americas

1.3 MMbbls

1.6 MMbbls(7.1 Mbbls per day)(8.6 Mbbls per day)

7.6 Bcf

1.6 Bcf(42.0 MMcf per day)(9.1 MMcf per day)Subtotal

2.7 MMboe(15.0 Mboe per day)

1.8 MMboe(9.8 Mboe per day)

Crude oil57.2 MMbbls(316.1 Mbbls per day)

71.8 MMbbls(396.7 Mbbls per day)Natural gas

Natural gas
Total

For the six months ended
June 30, 2022

Subtotal
IodineElectric power generation
Sulfur

199.4 Bcf

243.3 Bcf

(1,101.4 MMcf per day)

(1,344.4 MMcf per day)95.6 MMboe

118.4 MMboe(527.9 Mboe per day)

(653.9 Mboe per day)

289.1 tons

286.2 tons

313.7 million kWh

320.3 million kWh

47.8 Mtons

49.3 Mtons

Notes: 1. The volume of LPG produced overseas is included in “Crude oil.”
2. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
3. The production by the Company’s affiliates accounted for by the equity method is included in the figures above.
Also the production volume is a result for the six months ended June 30 regardless of the fiscal year-ends of its subsidiaries or affiliates.

- 15 -

4. The production volume of crude oil and natural gas under the production sharing contracts entered into by the Group corresponds to the net economic
take of the Group.
Figures calculated by multiplying the gross production volume by the Company’s interest share are 62.2 MMbbls (343.7 Mbbls per day) of crude oil,
206.8 Bcf (1,142.4 MMcf per day) of natural gas, and in total 101.8 MMboe (562.6 Mboe per day) for the six months ended June 30, 2021, and 77.2
MMbbls (426.8 Mbbls per day) of crude oil, 248.2 Bcf (1,371.1 MMcf per day) of natural gas, and in total 124.6 MMboe (688.3 Mboe per day) for thesix months ended June 30, 2022.
5. “Boe” means barrels of oil equivalent.
6. “Iodine” is refined by other company on consignment.
7. Figures are rounded to the first decimal place.

2) Orders received
Disclosure on this information is omitted because the amount of orders received is accounted for a minor portion of total sales.
3) Actual sales
The following table shows sales by segment:

Segment

Category(Millions of yen)
For the six months ended
June 30, 2022

For the six months ended
June 30, 2021
Net sales

Crude oil

1,955

3,272

46,91784,355

LPG

10

5

Other

8,143

9,522

Subtotal

57,027

97,156

Crude oil

52,075

120,344

65,999141,824

LPG

1,485

2,193

Subtotal

119,561

264,362

Crude oil

55,375

161,544(1,541)

15,339

Other

76

1,141

Subtotal

53,910178,025

Crude oil

257,409

540,624

Crude oil

8,550

17,421Natural gas(excluding LPG)

1,938

885

Subtotal

10,48918,306

Crude oil

375,366

843,207113,313242,404

LPG

1,496

2,199

Other

8,220

10,664

Total

498,397

1,098,476

Natural gas(excluding LPG)Japan

Natural gas
Asia & Oceania

Eurasia(Europe & NIS)

Middle East & Africa

Americas(excluding LPG)

Natural gas(excluding LPG)

Natural gas(excluding LPG)
Total

Net sales- 16 -