Consolidated Financial Results for the year ended March 31, 2015 [Japanese GAAP]May 14, 2015
Note: The following report is an English translation of the Japanese-language original.
Company name
Code number
Representative
Contact person: INPEX CORPORATION
Stock Exchange on which the Company is listed : Tokyo Stock Exchange: 1605
URL http://www.inpex.co.jp: Toshiaki Kitamura, President: Kimihisa Kittaka, General Manager, Corporate Communications Unit
TEL+81-3-5572-0233
Scheduled date of ordinary general meeting of shareholders : June 24, 2015
Scheduled date of filing Financial Report: June 25, 2015
Scheduled date of payment of cash dividends: June 25, 2015
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, 2015 (April 1, 2014 - March 31, 2015)(1) Consolidated operating results(Figures in % represent the changes from the previous fiscal year)

Net sales

Operating income

Ordinary income

Net income

For the year ended
March 31, 2015

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

1,171,226(12.2)

534,886(27.1)

575,155(23.3)

77,820(57.6)March 31, 2014

1,334,625

9.7

733,6105.8

750,077

4.4

183,6900.4(Note): Consolidated comprehensive income: for the year ended March 31, 2015, ¥ 306,979 million; ((11.2)%)
for the year ended March 31, 2014, ¥ 345,672 million; (2.4%)

Net income pershare—basic

Net income pershare—diluted

Net income
as a percentage of net
assets excluding
minority interests

Ordinary income
as a percentage of
total assets

Operating income
as a percentage ofnet sales

Yen

Yen

%

%

%

For the year ended
March 31, 2015

53.29

2.7

13.5

45.7

March 31, 2014125.78

7.0

19.6

55.0

(Reference): Equity in earnings (losses) of affiliates:for the year ended March 31, 2015, ¥ (13,443) million
for the year ended March 31, 2014, ¥ (5,053) 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, 2013.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Net assets excluding
minority interests as apercentage of total assets

Net assets excluding
minority interests
per share%

Yen

Millions of yen

As of March 31, 2015

4,499,153

3,288,703

68.2

2,099.95

As of March 31, 2014

4,038,139

2,996,036

69.1

1,911.25(Reference): Net assets excluding minority interests: as of March 31, 2015, ¥ 3,066,680 million
as of March 31, 2014, ¥ 2,791,108 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, 2013.

(3) Consolidated cash flows
Cash flows fromoperating activities
For the year ended
March 31, 2015

Millions of yen

March 31, 2014

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the year

Millions of yen

Millions of yen

216,749(81,086)(4,177)

260,978

213,513(395,555)

48,961

117,530

1Millions of yen

2. Dividends
Cash dividends per share
At 1st
At 2ndAt 3rdquarter end quarter end quarter end
For the year ended
March 31, 2014
March 31, 2015
For the year ending
March 31, 2016
(forecast)

Yen

Yen

At fiscal
year end

Yen

Total cash
dividends(Annual)

Total

Yen

Cash dividends

Payout ratio as a percentage(Consolidated) of net assets(Consolidated)

Yen

Millions of yen%%

26,286
26,286

14.3
33.8

1.0
0.9

3,600.00
9.00

9.00
9.00

18.00

9.00

9.00

18.00

37.6

(Note): 1. The amount of 2nd quarter-end dividend for the fiscal year ended March 31, 2014 is provided before taking into consideration the effect of
the stock split conducted at a ratio of 1:400 of common stock with October 1, 2013 as the effective date.
2. Above information of "Dividends" is regarding common stock. For information regarding Class A stock (which is not listed), please refer to
Exhibit "Dividends of Class A stock".

3. Forecasted Consolidated Operating Results for the year ending March 31, 2016 (April 1, 2015 - March 31, 2016)(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales

Operating income

Millions of yen

For the six months ending
September 30, 2015
For the year ending
March 31, 2016

% Millions of yen

595,000 (10.3)
1,249,000

6.6

Net income
attributable to
INPEX
CORPORATION

Ordinary income% Millions of yen%

Yen

234,000 (32.5)

243,000 (34.1)

34,000 (61.7)

23.28

489,000

512,000 (11.0)

70,000 (10.0)

47.93

(8.6)

%

Millions of yen

Net income
per share*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 and other regulations : Yes
2. Other changes in accounting policies: None: None3. Changes in accounting estimates
4. Restatement of corrections: None(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:
3. Average number of shares:

1,462,323,600 shares as of March 31, 2015
1,462,323,600 shares as of March 31, 2014
1,966,400 shares as of March 31, 2015
1,966,400 shares as of March 31, 2014
1,460,357,200 shares for the year ended March 31, 2015
1,460,357,200 shares for the year ended March 31, 2014

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

(Reference) Non-Consolidated Financial Results
1. Financial results for the year ended March 31, 2015 (April 1, 2014 - March 31, 2015)(1) Operating results(Figures in % represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2015
March 31, 2014

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

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

417,670
456,325

(8.5)
14.2

139,754
209,835(33.4)
15.8

246,881304,670(19.0)
23.2

149,110
194,339(23.3)
32.1

Net income pershare—basic
Yen
102.11133.08Net income pershare—diluted
Yen(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date. Net income per share is calculated
based on the assumption that the stock split was conducted on April 1, 2013.

2

(2) Financial position
Total assets
As of March 31, 2015
As of March 31, 2014

Net assets

Net assets as apercentage of total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

3,516,098
3,542,098

2,398,664
2,274,314

68.2
64.2

1,642.52
1,557.37(Reference): Net assets: as of March 31, 2015, ¥ 2,398,664 million
as of March 31, 2014, ¥ 2,274,314 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, 2013.

*Indication of audit procedure implementation status
This earnings report is exempt from audit procedure under the Financial Instruments and Exchange Act. The audit procedure forfinancial 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, 2016" are based on thecurrently available information and contain many uncertainties. The final results might be significantly different from theaforementioned forecasts due to changes in business conditions including oil and natural gas price levels, production and sales plans,
project development schedules, government regulations and financial and tax schemes. Please refer to "1. (1) Analysis on
Consolidated Operating Results" on page 7.

3

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
March 31, 2014
March 31, 2015
For the year ending
March 31, 2016
(forecast)

Yen

Yen

Yen

At fiscal year end

Total

Yen

Yen

3,600.00
3,600.00

3,600.00
3,600.00

7,200.00
7,200.00

3,600.00

3,600.00

7,200.00(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date, however, for Class A stock(which is not listed), no stock split was implemented. The Articles of Incorporation specifies that dividends of Class A stock are equivalent to dividends
of a common stock prior to the stock split.

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

8(3) Dividend policy and Dividends for the year ended March 31, 2015 and for the year ending March 31, 20168

2. Overview of the INPEX CORPORATION Group9

3. Management Policy

10(1) Basic Management Strategy

10(2) Medium- to Long-Term Management Strategy, Management Indices and Challenges

10

4. Basic Rationale for Selection of Accounting Standards

13

5. Consolidated Financial Statements

14(1) Consolidated Balance Sheet

14(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

16

Consolidated Statement of Income

16

Consolidated Statement of Comprehensive Income17(3) Consolidated Statement of Changes in Net Assets

18(4) Consolidated Statement of Cash Flows

20(5) Notes to Consolidated Financial Statements

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

22(Basis of Presenting Consolidated Financial Statements)

22(Changes in Accounting Policies)

26(Changes in the Presentation)

26(Consolidated Balance Sheet)

27(Consolidated Statement of Income)30(Consolidated Statement of Comprehensive Income)31(Consolidated Statement of Changes in Net Assets)

32(Consolidated Statement of Cash Flows)

34(Segment Information and Others)

35(Financial Instruments)

39(Securities)

43(Derivative Transactions)45(Per Share Information)

46(Significant Subsequent Events)

46(Omissions of Disclosure)46

6. Non-Consolidated Financial Statements

47(1) Non-Consolidated Balance Sheet

47(2) Non-Consolidated Statement of Income50(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

7. Other56
56(1) Production, Orders Received and Sales Performance51. Results of Operations and Financial Position(1) Analysis on Consolidated Operating Results
In the fiscal year ended March 31, 2015, the Japanese economy continued on a path of gradual recovery, owing to improvements
in corporate earnings and the employment rate as a result of economic policies implemented by the Japanese government andmonetary easing by the Bank of Japan. However, certain aspects of the recovery in consumer spending remained weak following
the consumption tax hike.
Of the international crude oil prices, which significantly influence the performance of our Group, Brent crude oil, a common
benchmark, started at US$105.62 per barrel on April 1, 2014, and reached a high of US$115.06 per barrel in mid-June due tofactors including the decrease of crude oil production in Libya.
However, Brent crude oil fell thereafter as a result of a downward revision in crude oil demand forecasts for 2015 by IEA and
OPEC, and, spurred by OPEC's deferment of crude oil production cutbacks announced on November 27 amid intensifying
awareness of a crude oil oversupply, ultimately plunged about 60% in a period of six months, having dropped to a low of
US$46.59 per barrel in January for the first time in five years and nine months.
Brent crude oil then bounced back and finished at US$55.11 per barrel on March 31, 2015, owing to a perceived slowdown in
U.S. shale oil production growth combined with instability in Libya.
Meanwhile, in the Japanese domestic market, crude oil and petroleum product prices shifted in correlation with international oil
prices. The Group's average sales price for crude oil for the fiscal year ended March 31, 2015 reflected this shift, recording
US$84.00 per barrel, down US$23.78 from the previous fiscal year.
The foreign exchange market, another important factor that affects the business of our Group, began to trade at the ¥103 level to
the U.S. dollar. From April to July, the exchange rate remained at a narrow range of ¥101 to ¥103 level to the U.S. dollar without
significant changes on the Japanese and U.S. monetary policies. However, the suggestion by the FRB (Federal Reserve Board) inlate-August, which showed a possibility to move the rise in interest-rate forward, brought the yen depreciation against the U.S.
dollar to the ¥110 level.
Afterward, the yen depreciated sharply against the U.S. dollar when the Bank of Japan's unexpected additional monetary easing
and the change of the operating asset allocation target of GPIF (Government Pension Investment Fund) were announced in lateOctober. Furthermore, the yen depreciated against the U.S. dollar to the late ¥121 level while the U.S. employment rate whichannounced in early-December went beyond the market expectations.
Although the yen temporarily appreciated to the U.S. dollar following to the probable movement to reduce short yen positions
against the U.S. dollar, the appreciation of the U.S. dollar against many other currencies weakened the movement of yen buying
from the beginning of 2015, owing to the monetary easing policies in countries except the U.S. and TTM closed at ¥120.27 to the
U.S. dollar which turned out to be ¥17.35 lower than that of the fiscal year end of March 31, 2014.
Reflecting these situations, the average sales exchange rate for our Group for this fiscal year was ¥107.93 to the U.S. dollar, whichis ¥7.73 lower than that of the previous fiscal year.
Consolidated net sales for the year ended March 31, 2015 decreased by ¥163.3 billion, or 12.2%, to ¥1,171.2 billion from theprevious fiscal year due to a decrease in sales price of crude oil and overseas natural gas.
Net sales of crude oil decreased by ¥128.3 billion, or 14.9%, to ¥730.4 billion, and net sales of natural gas decreased by ¥33.5
billion, or 7.4%, to ¥421.8 billion.
Sales volume of crude oil increased by 1,387 thousand barrels, or 1.8%, to 80,558 thousand barrels. Sales volume of natural gas
decreased by 17,631 million cf, or 5.4%, to 309,485 million cf. Sales volume of overseas natural gas decreased by 17,204 million
cf, or 6.6%, to 242,807 million cf, and sales volume of domestic natural gas decreased by 11 million㎥, or 0.6%, to 1,787 million㎥ (66,679 million cf).
The average sales price of overseas crude oil decreased by US$23.78, or 22.1%, to US$84.00 per barrel. Meanwhile, the averagesales price of overseas natural gas decreased by US$1.73, or 13.2%, to US$11.36 per thousand cf. In addition, the average sales
price of domestic natural gas increased by ¥7.25, or 14.4%, to ¥57.56 per ㎥.
The decrease of ¥163.3 billion in net sales was mainly derived from the following factors: regarding net sales of crude oil andnatural gas, decreases in sales volume and unit sales price pushing sales down of ¥8.9 billion and ¥227.5 billion, respectively, andthe depreciation of the Japanese yen against the U.S. dollar contributing ¥74.5 billion to the increase, in addition, a decrease in net
sales excluding crude oil and natural gas of ¥1.5 billion.
Cost of sales for the year ended March 31, 2015 increased by ¥35.0 billion, or 7.1% , to ¥525.4 billion due mainly to thedepreciation of the Japanese yen against the U.S. dollar. Exploration expenses decreased by ¥4.9 billion, or 17.6% , to¥23.2 billion due mainly to a decrease in exploration activities in the Middle East and Africa region. Selling, general andadministrative expenses increased by ¥5.2 billion, or 6.4%, to ¥87.6 billion. As a result, operating income decreased by ¥198.7
billion, or 27.1%, to ¥534.8 billion.
Other income increased by ¥51.0 billion, or 100.6%, to ¥101.7 billion due to increases in such as gain on transfer of mining rights

6and foreign exchange gain. Other expenses increased by ¥27.2 billion, or 79.5%, to ¥61.4 billion due to increases in such asprovision for allowance for recoverable accounts under production sharing and equity in losses of affiliates. As a result, ordinary
income decreased by ¥174.9 billion, or 23.3%, to ¥575.1 billion.
Extraordinary loss was ¥35.1 billion as a result of posting impairment loss for certain projects due to a drop in oil prices andothers.
Total amount of current income taxes and deferred income taxes decreased by ¥98.7 billion, or 17.5%, to ¥464.4 billion, andminority interests were a debit of ¥2.2 billion. As a result of the above effects, net income for the year ended March 31, 2015
decreased by ¥105.8 billion, or 57.6%, to ¥77.8 billion.
Financial results by segment are as follows:
1) JapanNet sales increased by ¥9.2 billion, or 7.7%, to ¥129.5 billion due to an increase in sales price of natural gas. Operating income
decreased by ¥6.0 billion, or 26.7%, to ¥16.6 billion due to an increase in depreciation and amortization.
2) Asia & Oceania
Net sales decreased by ¥75.2 billion, or 15.5%, to ¥409.7 billion due to decreases in sales volume, and sales prices of crude oiland natural gas, despite the depreciation of the Japanese yen against the U.S. dollar. Operating income decreased by ¥86.6
billion, or 32.7%, to ¥178.2 billion.
3) Eurasia (Europe & NIS)
Net sales decreased by ¥2.2 billion, or 2.4%, to ¥94.0 billion due to a decrease in sales price of crude oil, despite an increase insales volume and the depreciation of the Japanese yen against the U.S. dollar. Operating income decreased by ¥10.3 billion, or
24.3%, to ¥32.2 billion.
4) Middle East & Africa
Net sales decreased by ¥96.9 billion, or 15.6%, to ¥524.5 billion due to a decrease in sales price of crude oil, despite anincrease in sales volume of crude oil and the depreciation of the Japanese yen against the U.S. dollar. Operating income
decreased by ¥87.9 billion, or 20.9%, to ¥333.2 billion.
5) Americas
Net sales increased by ¥1.9 billion, or 16.8% , to ¥13.3 billion due to an increase in sales price of natural gas and thedepreciation of the Japanese yen against the U.S. dollar, despite a decrease in sales volume. Meanwhile, operating loss
increased by ¥7.6 billion, or 100.2%, to ¥15.3 billion due to an increase in exploration expenses and others.
As for the outlook, consolidated net sales for the six months ending September 30, 2015 are expected to be ¥595.0 billion, todecrease by 10.3% compared with the six months ended September 30, 2014, and net sales for the year ending March 31, 2016 are
expected to be ¥1,249.0 billion, to increase by 6.6% compared with the year ended March 31, 2015.
Operating income for the six months ending September 30, 2015 is expected to be ¥234.0 billion, to decrease by 32.5% comparedwith the six months ended September 30, 2014, and operating income for the year ending March 31, 2016 is expected to be ¥489.0
billion, to decrease by 8.6% compared with the year ended March 31, 2015.
Ordinary income for the six months ending September 30, 2015 is expected to be ¥243.0 billion, to decrease by 34.1% comparedwith the six months ended September 30, 2014, and ordinary income for the year ending March 31, 2016 is expected to be ¥512.0
billion, to decrease by 11.0% compared with the year ended March 31, 2015. Net income attributable to INPEXCORPORATION for the six months ending September 30, 2015 is expected to be ¥34.0 billion, to decrease by 61.7% comparedwith the six months ended September 30, 2014, and net income attributable to INPEX CORPORATION for the year ending
March 31, 2016 is expected to be ¥70.0 billion, to decrease by 10.0% compared with the year ended March 31, 2015.
Net sales for the year ending March 31, 2016 are expected to increase due to the forecasted increase in sales volume of crude oiland others contributed from the newly acquired project, despite a decrease in the forecasted decline in the crude oil pricecompared with the previous fiscal year.
Meanwhile, operating income, ordinary income and net income attributable to INPEX CORPORATION for the year ending
March 31, 2016 are expected to decrease, while the negative effect of decline of oil prices on the existing projects is forecasted to
exceed the positive contribution from the newly acquired project to these incomes.
In these estimates, the crude oil price is assumed to be US$65.0 per barrel (for Brent crude oil) with the exchange rate of theJapanese yen against the U.S. dollar at ¥120.0 through the year ending March 31, 2016.

7

(2) Analysis on Consolidated Financial Position
Consolidated total assets as of March 31, 2015 increased by ¥461.0 billion to ¥4,499.1 billion from ¥4,038.1 billion as of March
31, 2014. Current assets increased by ¥202.2 billion to ¥1,342.4 billion due to increases in cash and deposits and others. Fixed
assets increased by ¥258.8 billion to ¥3,156.7 billion due to an increase in construction in progress and others.
Meanwhile, total liabilities increased by ¥168.3 billion to ¥1,210.4 billion from ¥1,042.1 billion as of March 31, 2014. Current
liabilities decreased by ¥10.4 billion to ¥365.2 billion due to a decrease in income taxes payable and others. Long-term liabilities
increased by ¥178.8 billion to ¥845.2 billion due to an increase in long-term debt and others.
Net assets increased by ¥292.6 billion, to ¥3,288.7 billion. Total shareholders' equity increased by increased by ¥51.7 billion, to¥2,549.4 billion. Total accumulated other comprehensive income increased by ¥223.8 billion to ¥517.1 billion and minority
interests increased by ¥17.0 billion to ¥222.0 billion.
As for cash flows for the year ended March 31, 2015, net cash provided by operating activities increased by ¥3.2 billion to ¥216.7
billion from the previous fiscal year due to decreases in income taxes paid and accounts receivable-other, despite a decrease inincome before income taxes and minority interests. Meanwhile, net cash used in investing activities decreased by ¥314.4 billion to¥81.0 billion due to an increase in proceeds from time deposits, a decrease in payments for long-term time deposits and others,
despite an increase in payments for purchases of tangible fixed assets. Net cash used in financing activities was ¥4.1 billion due toa decrease in proceeds from long-term debt, meanwhile, net cash provided by financing activities was ¥48.9 billion for theprevious fiscal year.
After totaling ¥11.9 billion of the effect of exchange rate changes on cash and cash equivalents, the increase in cash and cash
equivalents for the year ended March 31, 2015 amounted to ¥143.4 billion. Cash and cash equivalents at the end of the fiscal year
ended March 31, 2015 totaled ¥260.9 billion reflecting the above net increase of ¥143.4 billion, from ¥117.5 billion at the end of
the previous fiscal year.
(3) Dividend policy and dividends for the year ended March 31, 2015 and for the year ending March 31, 2016
In order to secure a stable and efficient supply of oil and gas resources, the INPEX CORPORATION Group aims to expand its
operating base, and will make the required investments to undertake exploration and development activities in Japan and overseas
as well as maintain and expand its supply infrastructure. The robust financial standing of the INPEX CORPORATION Group is
crucial for maintaining this level of investment. Therefore, our basic policy is to find a suitable balance between maximizing
corporate value through investing in the sustenance and expansion of our reserves as well as oil and gas production, and driving
direct shareholder returns via cash dividends, taking into account the Group s medium- to long-term perspectives.
In accordance with the policy outlined above, the Group has set the year-end dividend at ¥9 per common stock for the year ended
31, 2015. Combined with the mid-term dividend of ¥9 per common stock, the total dividend for the year is ¥18 per common stock.
Also in accordance with the policy, the Group has set the year-end dividend of ¥3,600 per Class A stock for the year ended 31,
2015. Combined with the mid-term dividend of ¥3,600 per Class A stock, the total dividend for the year is ¥7,200 per Class A
stock.
For the year ending March 31, 2016, the Group expects mid-term and year-end dividends each of ¥9 per common stock and¥3,600 per Class A stock, bringing total dividends to ¥18 per common stock and ¥7,200 per Class A stock.
The Group plans to allocate retained earnings to investments for the sustenance and expansion of its reserves as well as oil and gas
production, among other initiatives.

82. Overview of the INPEX CORPORATION GroupThe INPEX CORPORATION Group consists of INPEX CORPORATION, 75 subsidiaries (including 65 consolidated
subsidiaries), 25 affiliates (including 19 equity method affiliates) and their 3 subsidiaries (as of March 31, 2015). 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.

93. Management Policy(1) Basic Management Strategy
The INPEX Group aims to become a top class international oil and gas exploration and production company by sustainably
growing its oil and gas development business. With natural gas as our core business, we will grow into an integrated energy
company by making contributions to a stable energy supply to broader communities. We will continue to play a significant rolein boosting the supply of energy to Japan while contributing to global economic growth and social development. Through these
efforts, we intend to further advance our reputation among our shareholders and more broadly our stakeholders as a company
essential to the global community.
(2) Medium- to Long-Term Management Strategy, Management Indices and Challenges
Based on the Basic Management Strategy above, we carry out our business operations in accordance with the following threemeasures:- Continuous enhancement of E&P activities to become a top class international oil & gas E&P company- Strengthening of gas supply chain to further globalize gas business- Reinforcement of renewable energy initiatives to become an integrated energy company contributing to the global
community
Our challenges are as follows;
The INPEX Group's upstream oil and gas business involves developing new oil and gas fields discovered through conducting
geophysical surveys and drilling exploratory wells, and delivering shareholder returns from profits generated by producing andselling the oil and natural gas, as well as reinvesting in new exploration and development in order to maintain and expand
reserves.
In carrying out exploration, development and production activities, the INPEX Group gives the highest priority in ensuringsafety and minimizing environmental impact. To this end, the Group's business operations are based on systems and frameworks
that meet global standards in safety, environmental sustainability, etc.
There are numerous risks inherent to the upstream oil and gas industry, such as the risk of insufficient discovery of oil and gas
through exploration, the risk of development and production schedule delays, the risk of accidents and cost overruns, the risk
associated with the logistics of transporting oil and natural gas on tankers and through pipelines, and country risks involving
potential changes in the legal and tax systems in producing countries. Taking such risks into account, the INPEX Group pursues
a financially sound mix between operations with high growth potential through the expansion of reserves and operations
providing stable revenue to improve the quality of its asset portfolio. At the same time, the Group aims to further enhance its
corporate value by fully leveraging its overseas assets as well as its domestic infrastructure including its LNG terminal andnatural gas pipeline network.
In May 2012, we set targets to achieve sustainable growth over the medium- to long-term, and laid out the MEDIUM- TO
LONG-TERM VISION OF INPEX—Ichthys and our growth beyond—to clarify key initiatives over the five years leading up to
the startup of the Ichthys LNG Project. The three growth targets outlined in the vision are: 1) Continuous Enhancement of our
E&P Activities; 2) Strengthening our Gas Supply Chain; and 3) Reinforcement of our Renewable Energy Initiatives. Our threemanagement policies designed to support these growth targets are: 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 realizing its vision, the Group intends to further enhance its corporate value as well as its reputation
among its shareholders, and more broadly its stakeholders, as a company essential to the global community.
The INPEX Group is now faced with an immediate challenge of responding to the drop in oil prices since the second half oflast year. To this end, we will evaluate individual project investments and reduce operating expenditures as well as sales, generaland administrative expenses, and build a resilience that will allow us to ensure the continuity of efficient business operations
even with oil prices remaining at relatively low levels for a sustained period of time.
Meanwhile, business operations geared towards our medium to long-term growth must proceed unhindered. We are making
sound progress with development work on the Ichthys LNG Project in Australia ahead of production, while studying ways tooptimize development plans for the Abadi LNG Project in Indonesia centered on a large scale FLNG. We will also continue ourefforts to secure stable production in our existing projects including the Offshore Mahakam Block in Indonesia, the ADMA
Block offshore Abu Dhabi and the ACG oil fields in Azerbaijan, undertake exploration activities aimed at the acquisition of newoil and gas reserves and pursue opportunities to join viable projects. In Japan, we have been enhancing our gas infrastructure
including the construction of the Toyama Line to respond to the growing demand for use of natural gas. We give considerable
importance to sustainably growing our natural gas business by strengthening our gas supply chain in conjunction with the natural
gas produced from our assets in Japan and around the world.

10

The Group's fundamental business operation policies and initiatives to the address the challenges are as follows:
Continuous Enhancement of E&P Activitiesi) Balanced Asset Portfolio- Regional Diversification
The Group's operations have diversified beyond Japan, Asia, Oceania and the Middle East, where we have a wealth ofoperational experience, to include locations around the world such as the Caspian Sea region, Central and South America andAfrica. We will continue to pursue a portfolio of assets taking regional balance into consideration.
- Crude Oil and Natural Gas Products Ratio
The INPEX Group's ratio of crude oil products versus natural gas products is approximately 60/40.
Crude oil, which has diverse applications and is considered a convenient fuel source that can be easily handled, transported
and stored, is widely used all over the world. As crude oil is a sensitive commodity, its sales prices are often influenced bymarket conditions. While crude oil customers are not bound to long-term sales contracts, capital investments in crude oil
production and transportation are relatively small in comparison to natural gas including LNG. Furthermore, the timerequired for crude oil development is comparatively short, enabling quick returns on investment once oil fields are
discovered.
Natural gas has the lowest environmental impact among fossil fuels, and demand for natural gas as a quick and effective
measure against global warming is expected to increase. Commercial production of natural gas requires substantial
investment and a long lead-time for the preparation of infrastructure such as liquefaction plants or pipelines. Since gas buyers
are also required to make large investments in LNG receiving facilities, stable and long-term sales and purchase contracts are
essential. Such LNG contracts, while influenced to an extent by oil price fluctuations, enable long-term profit stability.
When acquiring interests in new projects, it is important to achieve a sound balance between crude oil and natural gas
production to ensure efficient investment with a view to securing long-term cash flow.
- Balancing Project Stages (Exploration, Development and Production)
Because oil and gas reserves become depleted as production advances, the INPEX Group must constantly seek to acquire
fresh reserves to ensure stable profitability. For this, it is important to reinvest production revenue in exploration and create an
operational cycle of discovering, developing and producing at new oil and gas fields to generate revenue, ensuring the stability
and continuity of projects at every stage.
To maintain this cyclical balance, we will continue to focus on stable production at key assets including the Offshore
Mahakam Block and the ADMA Block as well as the steadfast development of the Ichthys and Abadi LNG Projects, while
investing in new exploration opportunities.
ii) Implementation of Operator Projects
As Operator, we require significant management resources in terms of organization, human resources and financing.
However, being Operator also presents us with significant opportunities to acquire new participating interests throughimproved technological capabilities and greater recognition from oil and gas producing countries as well as international oil
companies. The group is committed to pursuing and implementing projects as Operator, starting with the Ichthys and Abadi
LNG Projects, by further enhancing its technological capabilities, ensuring safety in all operations and integrating with local
communities.
iii) Strengthening Relationships with Leading Oil and Gas Companies Globally
Developing oil and gas involves considerable risks. Large-scale projects in particular require investments too large for acompany to shoulder on its own. Companies therefore typically form consortiums to share the risks and jointly undertake
business operations. The INPEX Group is committed to increasing its chances of participating in viable projects, expanding its
business and dispersing risks through enhanced cooperation with major international oil companies and national oil companies
in oil and gas producing countries as well as leading private oil resource developers, Japanese trading companies and otherenergy-related enterprises.
Strengthening Gas Supply Chain
The INPEX Group aims to establish operations in the Japanese natural gas market, which represents a stable source ofrevenue. As well as sustaining a natural gas pipeline network to supply the promising market in the Kanto-Koshinetsu region,
we plan to increase production at the key Minami-Nagaoka gas field. We also own numerous promising natural gas assets
primarily in Australia and Indonesia. To ensure our long-term growth, we will actively pursue the strengthening of our gas
supply chain organically linking such international assets with our infrastructure in Japan, including our Naoetsu LNG
Terminal.

11

Reinforcement of Renewable Energy Initiatives
As an E&P company, one of our most important challenges is to reduce environmental impact through greenhouse gas
reduction initiatives, etc. We are pursuing the development of renewable energy resources such as photovoltaic andgeothermal power generation and biomass fuels, as well as next-generation energy solution technologies based on hydrogen,fuel cells and high performance batteries in cooperation with Japanese and international companies, universities andorganizations. Through these activities, we seek to locate new business opportunities while helping reduce environmental
impact.
Securing / Developing Human Resources and Building an Efficient Organizational Structure
As part of our efforts to build the organizational structure described in the MEDIUM- TO LONG-TERM VISION OF
INPEX, we established two new divisions—the New Ventures Division and Gas Supply & Infrastructure Division—andreorganized overseas project divisions and units. Most recently, we created the Global HR / Diversity & Inclusion Group
within the Human Resources Unit in January 2015 to promote diversity and globalization within our company. Meanwhile, in
April 2014, we introduced INPEX Values, an important set of values shared by all INPEX officers and employees as the firststep in establishing our global HR system. We will continue building an efficient organizational structure and seek to secureand leverage the diverse experiences and values of a global workforce.
Investing in Growth and Delivering Suitable Shareholder Returns
To ensure growth for the Group, we will progressively carry out investment activities in the medium- to long-term while
maintaining sound financial standing. With an eye on the Ichthys production startup schedule, we will look to deliver suitableshareholder returns meeting the standards of top class international oil and gas E&P companies.
Responsible Management as a Global Companyi) CSR Management Promotion, Enhanced Stakeholder Communications and Corporate Governance
As a global entity, the INPEX Group has strived to develop a responsible management system. We are engaged in various
ways to progressively strengthen our CSR management under the guidance of the CSR Committee chaired by the president.
We will continue to promote active disclosure practices so as to reach out to our stakeholders based in many places around theworld. We have already implemented measures through the INPEX Advisory Committee to reinforce our corporate
governance from a global perspective, and will continue to strengthen internal management with the implementation of the
Corporate Governance Code on June 1.
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 its mission of supplying energy in a stable and efficient manner thereby contributing to the advancement ofsociety, and through the implementation of activities outlined in its Vision, the INPEX Group will improve its corporate value
over the long term with a view to securing steady growth.

12

4. Basic Rationale for Selection of Accounting Standards
The INPEX Group has been analyzing the differences between International Financial Reporting Standards (IFRS) andaccounting principles generally accepted in Japan. The Group will take into consideration the domestic and internationalsituations for appropriate adoption of the IFRS in the future.

13

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

As of March 31, 2014

As of March 31, 2015

(Assets)
Current assets
Cash and deposits

650,187922,683

Accounts receivable-trade110,395

77,209Marketable securities

201,000

162,289

Inventories

1

Deferred tax assets

25,485

1

31,652

7,745

4,955

Accounts receivable-other121,120

110,314

Other

41,912

46,211Less allowance for doubtful accounts(17,643)(12,905)

Total current assets

1,140,204

1,342,409

Buildings and structures, net

145,936

138,010

Wells, net

25,34836,391

Machinery, equipment and vehicles, net

112,898

109,686Land

19,736

19,869Construction in progress

626,520

1,173,409

Other, net

21,33920,254

Fixed assets
Tangible fixed assets

Total tangible fixed assets

2,

4,

951,779

52,

4,1,497,621

5

Intangible assets
Goodwill

81,08074,319

Exploration and development rights

125,621

134,809

Mining rights

221,411238,316

Other

11,065

11,324

Total intangible assets

439,178458,769

Investments and other assets
Investment securities

3,476,4074

3,

284,0904Long-term loans receivable

33,091

126,516Long-term time deposits
Recoverable accounts under production
sharing364,103120,270

685,990

703,291

13,821

22,848Deferred tax assets
Other

3,

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

14

4

61,1593,

476,168(885)(8,398)(123,483)(121,707)(3,226)(2,727)

1,506,977

1,200,352

2,897,935

3,156,743

4,038,139

4,499,153

(Millions of yen)Accounts

As of March 31, 2014

As of March 31, 2015

(Liabilities)
Current liabilities
Accounts payable-trade

46,811

Short-term loans

53,474

21,954

4

Income taxes payable

33,206

4

91,198

Accounts payable-other131,904

4

Provision for exploration projects

60,185
113,567

4

9,816

9,492

Accrued bonuses to officers

110

70

Asset retirement obligations

2,353

1,093

Other

71,521

94,122

Total current liabilities

375,670

365,212Long-term liabilities
Long-term debt

561,6744643,951

4

Deferred tax liabilities

54,95977,917

Provision for loss on business

6,977

9,080

234

227

Liability for retirement benefits

7,793

6,700

Asset retirement obligations

25,954105,234

Accrued special repair and maintenance

Other

4

Total long-term liabilities

8,838

4

2,126

666,432

845,238

1,042,102

1,210,450

Common stock

290,809290,809

Capital surplus

679,287

679,287

Retained earnings

1,532,876

1,584,645

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

2,549,494

Unrealized holding gain on securities

44,73746,049Unrealized loss from hedging instruments(17,578)(36,423)

Translation adjustments

266,224

507,560

Total accumulated other comprehensive income

293,382

517,185

Minority interests

204,928

222,023

Total net assets

2,996,036

3,288,703

Total liabilities and net assets

4,038,139

4,499,153

Total liabilities(Net assets)
Shareholders equity

Total shareholders equity
Accumulated other comprehensive income15(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)
For the year ended
March 31, 2015

For the year ended
March 31, 2014

Accounts
Net sales

1,334,625

Cost of sales

1,171,226

490,4162

525,443

2

Gross profit

844,209645,782

Exploration expenses

28,20523,238Selling, general and administrative expenses

1,

Operating income

282,3921,

287,657

733,610534,886

Interest income

17,462

11,226

Dividend income

9,227

6,669

Gain on sales of marketable securities

10,335

18,146797

27,520

Other income

Gain on transfer of mining rights

19,562Foreign exchange gain
Other

12,911

18,639Total other income

50,734

101,763Interest expense

2,335

2,946

Equity in losses of affiliates

5,053

13,443

Provision for allowance for recoverable accounts under
production sharing

8,028

19,449Provision for exploration projects

1,165

835

Foreign exchange loss

4,279

Other expenses

Loss on disposal of fixed assets

71

6,258

Other

13,333

18,561

Total other expenses

34,266

61,494750,077

575,155

Ordinary income
Extraordinary loss
Impairment loss

3

35,13235,132

Total extraordinary loss
Income before income taxes and minority interests

750,077

540,022

Income taxes-current

514,015

448,658

Income taxes-deferred

49,121

15,767

Total income taxes

563,136

464,425

Income before minority interests

186,941

75,5973,250(2,222)

183,690

77,820Minority interests
Net income

16Consolidated Statement of Comprehensive Income(Millions of yen)
For the year ended
March 31, 2015

For the year ended
March 31, 2014

Accounts

Income before minority interests

186,941

75,597

9,981

1,315

Other comprehensive income
Unrealized holding gain on securities
Unrealized loss from hedging instruments(20,887)

Translation adjustments

176,311

244,018

Share of other comprehensive income of associates
accounted for by the equity method(6,674)(13,951)

Total other comprehensive income1

Comprehensive income

158,7311

231,382345,672

306,979

335,737

301,622

9,934

5,356

Total comprehensive income attributable to
INPEX CORPORATION
Minority interests17(3) Consolidated Statement of Changes in Net Assets
For the year ended March 31, 2014
(Millions of yen)
Shareholders' equity
Common stock Capital surplus
Balance at the beginning of the period

Retainedearnings

Treasury stock

Total
Shareholders'equity290,809679,287

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

290,809679,287

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

Cumulative effects of changes inaccounting policies
Restated balance
Changes during the period
Cash dividends paid

(25,921)(25,921)

Net income

183,690

183,690

157,769

157,769

Other changes in items other than thosein shareholders' equity, net
Total changes during the period
Balance at the end of the period

290,809679,287

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

Minority
interests

Total net
assets

Accumulated other comprehensive income
Total
Unrealized
Unrealized
accumulated
Translation
holding gain gain(loss)
otherfrom hedging adjustmentson securities
comprehensive
instruments
incomeBalance at the beginning of the period

34,741

16,24390,350141,336

189,691

2,670,983

34,741

16,24390,350141,336

189,691

2,670,983

Cumulative effects of changes inaccounting policies
Restated balance
Changes during the period
Cash dividends paid

(25,921)

Net income

183,690

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

9,995(33,822)

175,873

152,046

15,236167,283

Total changes during the period

9,995(33,822)

175,873

152,046

15,236

325,052

Balance at the end of the period

44,737(17,578)

266,224

293,382

204,928

2,996,036

18

For the year ended March 31, 2015
(Millions of yen)
Shareholders' equity
Common stock Capital surplus
Balance at the beginning of the period

290,809679,287

Retainedearnings

Total
Shareholders'equity(5,248)2,497,725

1,532,876

Cumulative effects of changes inaccounting policies
Restated balance

Treasury stock

235
290,809679,287

1,533,111

235(5,248)2,497,961

Changes during the period
Cash dividends paid

(26,286)(26,286)

Net income

77,82077,82051,53351,533

Other changes in items other than thosein shareholders' equity, net
Total changes during the period
Balance at the end of the period

290,809679,287

1,584,645(5,248)2,549,494

Minority
interests

Total
net assets

204,928

2,996,036

Accumulated other comprehensive income

Balance at the beginning of the period

Unrealized
holding gain
on securities

Unrealized
loss fromhedging
instruments

44,737(17,578)

Total
accumulated
Translationotheradjustments
comprehensive
income266,224

293,382

Cumulative effects of changes inaccounting policies
Restated balance

235
44,737(17,578)

266,224

293,382

204,928

2,996,272

Changes during the period
Cash dividends paid

(26,286)

Net income

77,820

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

1,311(18,845)

241,335

223,802

17,094

240,897

Total changes during the period

1,311(18,845)

241,335

223,802

17,094292,431

Balance at the end of the period

46,049(36,423)

507,560

517,185

222,023

3,288,703

19

(4) Consolidated Statement of Cash Flows(Millions of yen)
For the year ended
March 31, 2014

Accounts

For the year ended
March 31, 2015

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

750,077

540,022

Depreciation and amortization

50,91652,520

Impairment loss

35,132

Amortization of goodwill

6,760

6,760

Provision for allowance for recoverable accounts
under production sharing

14,882

20,307

Provision for exploration projects(17,318)(600)

Other provisions

5,024

3,419

Liability for retirement benefits

(776)

(873)

Interest and dividend income(26,691)(17,895)

Interest expense

2,335

2,946

Foreign exchange loss (gain)

14,1053,973

Equity in (earnings) losses of affiliates

5,053

13,443Gain on transfer of mining rights(797)(27,520)

Gain on sales of marketable securities(10,335)(18,146)

Recovery of recoverable accounts under
production sharing (capital expenditures)

67,07375,585

Recoverable accounts under production
sharing (operating expenditures)(60,491)(60,763)

6,276

25,201(10,013)(797)

Accounts payable-trade

5,413

6,309

Accounts receivable-other(35,287)(1,440)Accounts payable-other(18,142)(11,246)

Advances received

2,168

(125)

Other

5,886

23,580Subtotal

756,118

669,795

Interest and dividends received

26,932

28,194

Interest paid

(2,381)(2,376)

Income taxes paid

(567,156)(478,863)

Net cash provided by operating activities

213,513

216,749

Accounts receivable-trade
Inventories

20

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

Accounts

For the year ended
March 31, 2015

Cash flows from investing activities
Payments for time deposits(211,332)(326,025)

Proceeds from time deposits

276,248

698,139

Payments for long-term time deposits(484,080)(112,181)

Proceeds from long-term time deposits

130,757

Payments for purchases of tangible fixed assets(323,650)(448,381)

Proceeds from sales of tangible fixed assets

677

245

Payments for purchases of intangible assets(6,170)(15,445)

Proceeds from sales and redemptions of marketable securities

285,451

214,527

Payments for purchases of investment securities(24,637)(26,767)

Proceeds from sales and redemptions of investment securities

62,43368,937(104,073)(70,430)

Decrease (increase) in short-term loans receivable(4,187)(3,824)Long-term loans made(37,158)(111,387)

Collection of long-term loans receivable

75,464259

Payments for purchase of mining rights(42,733)(18,424)

Proceeds from transfer of mining rights

797

59,405

10,64010,266(395,555)(81,086)

Increase in short-term loans

2,690

1,489

Proceeds from long-term debt

74,742

27,712

Repayments of long-term debt

(7,759)(18,683)

Proceeds from minority interests for additional shares

10,28916,730Cash dividends paid

(25,934)(26,287)

Dividends paid to minority shareholders(4,991)(4,991)

(74)

(147)

48,961(4,177)

Effect of exchange rate changes on cash and cash equivalents

50,752

11,962

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

143,447

Cash and cash equivalents at beginning of the period

199,858

117,530

Investment in recoverable accounts under
production sharing (capital expenditures)

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

Other
Net cash provided by (used in) financing activities

Cash and cash equivalents at end of the period

1

21

117,530

1

260,978

(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: 65
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: 1
Number of companies excluded from the scope of consolidation: 2
Details for the above changes:
1) INPEX Norge AS has been newly included due to an increase in materiality of the company.
2) Teikoku Oil de Venezuela, C.A., and Offshore Iwaki Petroleum Co., Ltd. have been excluded due to completion ofliquidation.
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) and total
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
LtdNames 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.
(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, theCompany used the financial statements of each affiliate prepared as of its closing date. For certain affiliates, however, theCompany used financial statements prepared for consolidation purposes as of the consolidated closing date.

22

3. Closing dates for the fiscal year of consolidated subsidiaries
For the 49 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 10 companies including, but not limited to, 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.
(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.

23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 benefit formula method is used for attributing expected retirement
benefits to periods through March 31, 2015. Because certain subsidiaries are classified as small enterprises, a simplified
method (the amount which would be required to be paid if all active employees voluntarily terminated their employment
as of the balance 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 prevailing at
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 special treatment is applied to the interest rate swaps that meet certain criteria. For certain equity-method affiliates, thedeferred hedge accounting method is adopted.
(b) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest payments on borrowings(c) Hedging policy
The nominal amount of the derivative transaction is limited to within the scope of actual demand, and the Company does
not engage in speculative derivative transactions.

24

(d) Hedge effectiveness assessment method
The Company does not perform hedge effectiveness assessment 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.

25

(Changes in Accounting Policies)
Effective the year ended March 31, 2015, the Company has applied provisions described in the main clause of Section 35 of the"Accounting Standard for Retirement Benefits" (Accounting Standards Board of Japan Statement No.26, issued on May 17, 2012)
and the main clause of Section 67 of the "Guidance on Accounting Standard for Retirement Benefits" (ASBJ Guidance No.25,
issued on March 26, 2015) and has changed the calculation methods for retirement benefit obligations and service costs. The
method of attributing expected retirement benefits to periods has been revised from the straight-line method to the benefit formula
method, and the method of determining the discount rate has been revised from a method based on an approximation of theemployees' average remaining service period to a method of using a single weighted average discount rate reflecting the estimatedpayment period and the amount for each estimated payment period of the retirement benefit.
In accordance with transitional accounting treatments as stated in Section 37 of the Accounting Standard, the impact of thechanges in calculation methods for retirement benefit obligations and service costs has been recognized as an adjustment toretained earnings at the beginning of the year ended March 31, 2015.
As a result, liability for retirement benefits decreased by ¥246 million while retained earnings increased by ¥235 million as ofApril 1, 2014. The impact on operating income, ordinary income and income before income taxes and minority interests for theyear ended March 31, 2015 was immaterial.
The impact on per share information was immaterial.
(Changes in the Presentation)(Consolidated Statement of Income)"Gain on transfer of mining rights", previously included in "Other" in other income, is presented separately since it has become
more significant.
As a result, ¥13,709 million which was recorded as "Other" in other income on the consolidated statement of income in theprevious fiscal year is reclassified as ¥797 million of "Gain on transfer of mining rights" and ¥12,911 million of "Other".
"Loss on disposal of fixed assets", previously included in "Other" in other expenses, is presented separately since it has become
more significant.
As a result, ¥13,404 million which was recorded as "Other" in other expenses on the consolidated statement of income in theprevious fiscal year is reclassified as ¥71 million of "Loss on disposal of fixed assets" and ¥13,333 million of "Other".
(Consolidated Statement of Cash Flows)"Gain on transfer of mining rights" and "Gain on sales of marketable securities", previously included in "Other" in cash flows
from operating activities, are presented separately since they have become more significant. "Proceeds from transfer of mining
rights", previously included in "Other" in cash flows from investing activities, is presented separately since it has become moresignificant.
As a result, ¥(5,247) million which was recorded as "Other" in cash flows from operating activities on the consolidated statementof cash flows in the previous fiscal year is reclassified as ¥(797) million of "Gain on transfer of mining rights", ¥(10,335) millionof "Gain on sales of marketable securities" and ¥5,886 million of "Other". ¥11,438 million which was recorded as "Other" incash flows from investing activities is reclassified as ¥797 million of "Proceeds from transfer of mining rights" and ¥10,640
million of "Other".

26

(Consolidated Balance Sheet)*1 Major accounts included in inventories
As of March 31, 2014

As of March 31, 2015

Millions of yen

Millions of yen

8,905

9,162

551

344

16,02822,145Merchandise and finished goods
Work in process
Raw materials and supplies*2 Accumulated depreciation of tangible fixed assets
As of March 31, 2014

As of March 31, 2015

¥ 638,744 million

Accumulated depreciation of tangible fixed assets¥ 683,230 million*3 The Company has the following investments in subsidiaries and affiliates.
As of March 31, 2014

As of March 31, 2015

Millions of yen

Millions of yen

112,576

132,377(of which investment in jointly controlled entities)

75

84

Other (investments and other assets)

78

74

Investment securities (equities)*4 Assets provided as collateral and collateral-backed debt are as follows:Collateralized Assets
As of March 31, 2014

As of March 31, 2015

Millions of yen
Buildings and structures
Wells
Machinery, equipment and vehicles

Millions of yen

2,082(2,082)

1,975(1,975)

181

(181)

48

(48)

8,026

(8,026)

6,968(6,968)

(

)

11

(11)

Other (tangible fixed assets)
Investment securities

790

(

)

1,020

(

)

Other (investments and other assets)

221

(

)

217

(

)

11,301(10,289)

10,241(9,004)

Total

27

Secured debt
As of March 31, 2014

As of March 31, 2015

Millions of yen

Millions of yen

Short-term loans

945

(929)

490

(474)

Accounts payable-other

385

( )

509

(

)

Long-term debt

491

(474)

1

(

)

Others (long-term liabilities)

16

(

)

16

(

)

1,839

(1,403)

1,018

(474)

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, 2014

As of March 31, 2015

Millions of yen

Millions of yen

7,835

3,875

Cash and deposits

4,729

Inventories
Other (current assets)

5,429

2,462

145

160

Construction in progress

382,224752,019

Long-term loans receivable

27,308

9,680

Total

422,943772,926

Land

The BTC pipeline project financing
As of March 31, 2014

As of March 31, 2015

¥ 6,378 million

Investment securities¥ 7,294 million*5 Accumulated advanced depreciation deducted from acquisition costs of fixed assets related to contribution and others
As of March 31, 2014

As of March 31, 2015

Millions of yen

Millions of yen

1,393

1,393

Machinery, equipment and vehicles

225

226

Land

84

84

Buildings and structures28

6 Contingent liabilities(1) The Company and its consolidated subsidiaries are contingently liable as guarantors of indebtedness of the following
companies:
As of March 31, 2014

As of March 31, 2015
Millions of yen

Millions of yen

Tangguh Trustee*

15,484

Tangguh Trustee*

16,168

Fujian Tranche*

5,489

Fujian Tranche*

5,731

Sakhalin Oil and Gas Development Co.,
Ltd.

2,457

Sakhalin Oil and Gas Development Co.,
Ltd.

1,914

INPEX Offshore North Campos, Ltd.

1,617 INPEX Offshore North Campos, Ltd.

1,260

Employees (housing loans)

112Japan Canada Oil Sands Limited

676

Japan Canada Oil Sands Limited

25 Oceanic Breeze LNG Transport S.A.

125

Employees (housing loans)
Total

25,18692
25,969*Debt for investment funds of Tangguh LNG project through MI Berau B. V. and MI Berau Japan Ltd.
(2) Guarantee for derivatives
As of March 31, 2014
Ichthys LNG Pty Ltd¥ (17,531) million

As of March 31, 2015
¥ (36,433) 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 a guaranteeof 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, 2014
Completion guarantee (the Company's portion)¥ 600,029 million

29

As of March 31, 2015
¥ 958,502 million

(Consolidated Statement of Income)*1 Major accounts included in selling, general and administrative expenses are as follows:
For the year ended
March 31, 2014
Millions of yen
Personnel expenses

For the year ended
March 31, 2015
Millions of yen

19,274

22,324106

19)(Including provision for accrued retirement benefits to employees

112

77)

Taxes

(Including provision for accrued bonuses to officers

6,786

5,691

Freight expenses

8,953

9,801

Depreciation expenses

25,047

24,518

Amortization of goodwill

6,760

6,760

*2 Research and development expenses included in general and administrative expenses and production cost:
For the year ended
For the year ended
March 31, 2014
March 31, 2015
¥ 40 million¥ 85 million*3 Impairment loss
The Company groups mining area and other assets as a basic unit that generates cash inflows independently of other groups ofassets. Due to impact from deteriorating business environments based on such factors as the drop in oil prices, the Company
reduced the respective carrying amounts of the assets listed below to recoverable amounts, posting the reductions as impairment
loss.
For the year ended March 31, 2015
Use

Location

Classification
Other (Tangible fixed assets)

Assets related to Joslyn Oil
Sands Lease BlockAlberta, Canada

Assets related to JPDA06-105
Block (Kitan Oil Field)

Timor Sea Joint Petroleum
Development Area (JPDA),
the Commonwealth ofAustralia / the Democratic
Republic of Timor-Leste

Impairment loss
(Millions of yen)
13,359Mining rights

14,231

Subtotal

27,590Wells

348

Machinery, equipment and vehicles

629

Construction in progress
Other (Investments and other assets)
Subtotal

Total

6,111
452
7,541
35,132

The recoverable amount of the assets related to JPDA06-105 Block (Kitan Oil Field) is reasonably estimated by discounting thefuture cash flows at a rate of 7%. The recoverable amount of the assets related to Joslyn Oil Sands Lease Block is estimated at
zero.

30

(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, 2014
March 31, 2015
Millions of yen
Millions of yen
Unrealized holding gain on securities
Amount recognized during the period

20,843

26,405

Amount of reclassification adjustment(10,473)(24,355)

Before income tax effect

10,3692,049

Amount of income tax effect

(388)

(734)

Unrealized holding gain on securities

9,981

1,315

Unrealized loss from hedging instruments
Amount recognized during the period(31,329)

Amount of income tax effect

10,441

Unrealized loss from hedging instruments(20,887)

Translation adjustments
Amount recognized during the period
Share of other comprehensive income of affiliates accounted for by theequity method
Amount recognized during the period

176,311

244,018(14,316)(28,436)2,238

Amount of reclassification adjustment
Adjustment for acquisition cost of assets
Share of other comprehensive income of affiliates accounted for by
the equity method
Total other comprehensive income

31

7,642

12,246(6,674)(13,951)

158,731

231,382(Consolidated Statement of Changes in Net Assets)
For the year ended March 31, 2014
1. Type and number of shares issued and treasury stock(Shares)

Balance as ofApril 1, 2013

Increase

Decrease

Balance as ofMarch 31, 2014

Number of shares
Common stock

3,655,809

Class A stock

1

Total

1,462,323,600

1,458,667,791

1

3,655,810

1,458,667,791

1,462,323,601

Common stock

4,916

1,961,484

1,966,400

Total

4,916

1,961,484

1,966,400

Treasury stock(Note): The increases of 1,458,667,791 shares in total number of shares and 1,961,484 shares in treasury stock were derived froma 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 of shareholders
June 25, 2013
Board of directors'
meetingNovember 7, 2013

Type of share Cash dividends paid
(Millions of yen)
Commonstock
Class Astock
Commonstock
Class Astock

Dividends
per share(Yen)

Record date

Effective date

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

03,600 September 30, 2013

December 2, 2013

(2) Dividends, whose record date was in the year ended March 31, 2014, and whose effective date will be in the next fiscal year
Resolution

Type ofshare

Source ofdividends

Cash dividends
paid(Millions of yen)

Dividends
per share(Yen)

Record date

Effective dateCommon Retained
13,143
9 March 31, 2014
June 26, 2014stock
earnings
Class A
Retained
June 26, 2014
03,600 March 31, 2014stock
earnings(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date.
Dividends per share, whose effective date is June 26, 2014 is calculated with the number of shares after the stock split
was conducted. For Class A stock (which is not listed), no stock split was implemented. The Articles of Incorporation
specifies that dividends of Class A stock are equivalent to dividends of a common stock prior to the stock split.
Ordinary general
meeting of shareholders
June 25, 201432

For the year ended March 31, 2015
1. Type and number of shares issued and treasury stock(Shares)

Balance as ofApril 1, 2014

Increase

Decrease

Balance as ofMarch 31, 2015

Number of shares
Common stock

1,462,323,600

1,462,323,600

Class A stock1

1

1,462,323,601

1,462,323,601

Common stock

1,966,400

1,966,400

Total

1,966,400

1,966,400

Total
Treasury stock

2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting of shareholders
June 25, 2014
Board of directors'
meetingNovember 7, 2014

Type of share

Cash dividends paid
(Millions of yen)

Commonstock
Class Astock
Commonstock
Class Astock

Dividends
per share(Yen)

Record date

Effective date

13,143

9March 31, 2014

June 26, 2014

0

3,600

March 31, 2014

June 26, 2014

13,143

9 September 30, 2014

December 1, 2014

03,600 September 30, 2014

December 1, 2014

(2) Dividends, whose record date was in the year ended March 31, 2015, and whose effective date will be in the next fiscal year
Resolution

Type ofshare

Source ofdividends

Ordinary general
meeting of shareholders
June 24, 2015

Commonstock
Class Astock

Retainedearnings
Retainedearnings

Cash dividends
paid(Millions of yen)

33

Dividends
per share(Yen)

Record date

Effective date

13,143

9March 31, 2015

June 25, 2015

0

3,600

March 31, 2015

June 25, 2015

(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, 2014

For the year ended
March 31, 2015

Millions of yen

Millions of yen

Cash and deposits

650,187922,683

Time deposits for more than three months and others(555,947)(661,705)

Marketable securities (commercial paper)

15,291Marketable securities (MMF and others)

8,000

Cash and cash equivalents

117,530

2 Significant non-cash transactions
For the year ended March 31, 2014 (April 1, 2013 through March 31, 2014)
None
For the year ended March 31, 2015 (April 1, 2014 through March 31, 2015)
Significant asset retirement obligations newly recorded were ¥69,253 million.

34

260,978

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

Adjustments Consolidated
*1
*2

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

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

Other items
Depreciation and
18,837
8,821
10,417
6,772
4,672
49,521
1,394
50,916amortization
(192)
(192)
6,952
6,760
Amortization of goodwill
Investment to affiliates
accounted for by the
1,999
39,12465,183
2,015
108,323
108,323
equity method
Increase of tangible fixed
42,403285,903
4,072
35,194
51,582
419,157417
419,574
assets and intangible
assetsNote: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 generaladministrative 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, marketablesecurities, investment securities and assets concerned with the administrative divisions not attributable to a reportablesegment.
(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.

35

For the year ended March 31, 2015 (April 1, 2014 through March 31, 2015)(Millions of yen)
Reportable segments
Eurasia(Europe Middle East Americas& Africa& NIS)

Adjustments Consolidated
*1
*2

Japan

Asia &
Oceania

129,521409,775

94,049524,528

13,351

1,171,226

1,171,226

Total

129,521409,775

94,049524,528

13,351

1,171,226

1,171,226

Segment income (loss)

16,692

178,225

32,227333,213(15,302)545,056(10,169)

534,886

Segment assets

292,960

1,677,806

557,563

253,120305,996

3,087,447

1,411,706

4,499,153

Total

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

Other items
Depreciation and
9,899
9,900
4,334
51,153
1,366
52,52020,651
6,366
amortization
Amortization of goodwill
(192)
(192)
6,952
6,760
Investment to affiliates
accounted for by the
1,596
61,16054,096
1,197
118,050
118,050
equity method
Increase of tangible fixed
assets and intangible
26,985405,230
12,412
46,37846,490537,498
418
537,917
assetsNote:1. (1) Adjustments of segment income of ¥(10,169) million include elimination of intersegment transactions of ¥209 million
and corporate expenses of ¥(10,379) million. Corporate expenses are mainly amortization of goodwill and generaladministrative expenses not attributable to a reportable segment.
(2) Adjustments of segment assets of ¥1,411,706 million include elimination of intersegment transactions of ¥(2,164) million
and corporate assets of ¥1,413,871 million. Corporate assets are mainly goodwill, cash and deposits, marketablesecurities, investment securities and assets concerned with the administrative divisions not attributable to a reportablesegment.
(3) Adjustments of depreciation and amortization of ¥1,366 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 ¥418 million consist mainly of capital
expenditure to corporate assets.
2. Segment income was reconciled with consolidated operating income.

36

(Relative information)
For the year ended March 31, 2014 (April 1, 2013 through March 31, 2014)
1. Products and service information(Millions of yen)
Natural gas(excluding LPG)

Crude oil
Sales to third parties

858,753

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

1,334,625

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

For the year ended March 31, 2015 (April 1, 2014 through March 31, 2015)
1. Products and service information(Millions of yen)
Crude oil
Sales to third parties

Natural gas(excluding LPG)

730,422401,337

LPG

Other

20,522

Total

18,944

1,171,226

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

Asia & Oceania
627,068

Other

514,863

Total
29,294

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

37

1,171,226

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

Australia
252,746

Other
985,770

Total
259,104

1,497,621

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

Sales

Relative reportable segment

PERTAMINA

160,369

Asia & Oceania

Idemitsu Kosan Co.,Ltd.

135,589

Middle East & Africa(Information on impairment loss from fixed assets by reportable segment)
For the year ended March 31, 2014 (April 1, 2013 through March 31, 2014)
None
For the year ended March 31, 2015 (April 1, 2014 through March 31, 2015)(Millions of yen)
Reportable segments
Japan
Impairment loss

Asia &
Oceania

Eurasia(Europe& NIS)

Middle East Americas& Africa

Total

27,59035,132

7,541

Eliminations
and other

Total

35,132(Information on amortization of goodwill and unamortized balance by reportable segment)
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 Americas& Africa*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 stated on
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, 2015 (April 1, 2014 through March 31, 2015)(Millions of yen)
Reportable segments
Japan

Asia &
Oceania

Eurasia(Europe& NIS)

Middle East Americas& Africa*1

Total

Eliminations
and other
*2

Total

Balance as of(2,162)(2,162)
76,482
74,319March 31, 2015
Note:1. This is the unamortized balance of negative goodwill acquired before April 1, 2010 and net amount of goodwill is stated on
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

38

(Financial Instruments)
1. Status of financial instruments(1) Policy regarding financial instruments
The Company raises funds for oil and gas development and production, construction or expansion of gas infrastructure
primarily from cash flow on hand and from bank loans. Oil and gas development projects are primarily funded from long-termloans that the Company has secured from the Japan Bank of International Cooperation, Japanese commercial banks andothers. 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 gas infrastructure. The Company generally borrows
with variable interest rates, while some loans are with fixed interest rates depending on the nature of each project. Regarding
the financing policy, the Company manages funds mainly from cash on hand and government bonds, which are considered of
low-risk and high-liquidity. The Company limits derivative transactions for managing risks of forecasted transactions andportfolio 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 andreduction of default risks.
(Market price fluctuation risk related to securities)
For marketable securities and investment securities exposed to market price fluctuation risk, analysis of market values isregularly reported to the Executive Committee. For stocks, the Company holds the shares of trading partners and others toestablish close and smooth relationship for the purpose of medium- to long-term stable business. Of these shares, theCompany partially holds for the purpose of investment. As for bonds, the Company mainly holds bonds with short-term
maturities by considering 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 gas
infrastructure and others. The borrowing period is determined considering financial prospects of the project and useful lives offacilities. Loans with variable interest rates are exposed to interest rate fluctuation risk, however, the Company analyzes theimpact 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 endeavors to reduce exchange rate fluctuation risk by
maintaining the position between assets and liabilities in foreign currencies. In addition to planned expenditures in foreign
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 Executive
Committee, and the Company only transacts with financial institutions with high credit ratings to reduce counterparty risks forthe 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

2. Fair value of financial instruments
Carrying value on the consolidated balance sheets, fair value and the difference between them are as shown below. Items forwhich it is extremely difficult to determine market value are not included in the following table (Please refer to Note 2).
As of March 31, 2014

(Millions of yen)
Carrying value

Fair value

Difference(1) Cash and deposits

650,187

654,694(2) Accounts receivable-trade(3) Marketable securities and investment
securities(4) Long-term time deposits

110,395

110,395

525,989

525,989

364,103367,841

3,738

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)

583,628

573,465(10,163)

Total assets

Total liabilities

4,506

Derivatives (*)(*) Net claims and debts arising from derivative transactions are presented on a net basis. In case the total amount is a debt
amount, the above figure is negative.
As of March 31, 2015

(Millions of yen)
Carrying value

Fair value

Difference(1) Cash and deposits

922,683

928,304(2) Accounts receivable-trade77,20977,209(3) Marketable securities and investment
securities

280,592

280,592

1,280,485

1,286,106

5,620(1) Short-term loans

33,20632,937(268)(2) Long-term debt

643,951

633,603(10,347)

677,157

666,541(10,616)

179

179

Total assets

Total liabilities
Derivatives (*)5,620(*) Net claims and debts arising from derivative transactions are presented on a net basis. In case the total amount is a debt
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 ina 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 of eachholding purpose, please refer to "Securities" section of the notes to consolidated financial statements.

40(4) Long-term time deposits
The fair value of long-term time 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 period oftime and its market value is almost the same as the carrying value.
(2) Long-term debt
The fair value of long-term debt is calculated by applying a discount rate to the total of principal and interest. The discountrate is based on the assumed interest rate if a similar new loan is entered into.
Derivatives
Please refer to "Derivative transactions" section of 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, 2015

As of March 31, 2014
Unlisted securities

33,842
5,000
112,576

Preferred securities
Stocks of subsidiaries and affiliates

33,409132,377

These financial instruments are assumed to have no quoted market prices and it is extremely 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 the fiscal closing dates are as
follows
As of March 31, 2014
(Millions of yen)More than 1 year
More than 5More than 10
1 year or lessbut less than 5
years but less
years
years
than 10 years
650,187
Cash and deposits
Accounts receivable-trade110,395
Marketable securities and investment
securities
Other securities:
Public bonds
66,00080,00022,500
Corporate bonds
Other bonds
Other
Long-term time deposits
Total

18,50030,741
66,003
941,828

51,80015,43866,096364,103
577,437

22,500

As of March 31, 2015

(Millions of yen)
1 year or less

Cash and deposits

922,683

Accounts receivable-tradeMarketable securities and investment
securities
Other securities:
Public bonds
Corporate bonds
Other bonds
Other
Long-term time deposits
Total

77,20917,00035,80018,04066,096
1,136,829

41

More than 1 year
but less than 5
years

14,00021,100120,270
155,370

More than 5
years but lessthan 10 years

More than 10yearsNote 4: Maturities for long-term loans payable, leased liabilities and other interest-bearing debt subsequent to the fiscal closing
dates are as follows
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

99,078286,436

99,078

As of March 31, 2015

(Millions of yen)
1 year or less

Short-term loans
Long-term debt
Lease obligations
Total

More than 10
years

6,763
26,442
68
33,27442

More than 1 year
but less than 5
years
276,228145
276,373

More than 5
years but lessthan 10 years
265,9691
265,971

More than 10
years
101,753
101,753

(Securities)
1. Other securities
As of March 31, 2014

(Millions of yen)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

Carrying value

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

2,025

(0)

4,999
8,000

4,999
8,000

(0)

50,715479,448

47,348525,989(3,366)
46,540

As of March 31, 2015
Type of securities

Unrealized gain
(loss)(Millions of yen)
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

43

Carrying value

Unrealized gain
(loss)

34,62352,081

17,45831,17839,30012,54973,495
191,147

31,24339,313
18,243
106,737
247,619

65
13
5,693
33,24256,472

17,765

15,374(2,390)17,60017,598(1)

35,365
226,51232,973
280,592(2,392)54,0802. Other securities sold for the fiscal years
For the year ended March 31, 2014
Type of securities(Millions of yen)
Proceeds from sales

Gain on sales

Loss on sales(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Total

72,562

181

76,850149,412

10,322
10,503For the year ended March 31, 2015
Type of securities(Millions of yen)
Proceeds from sales(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Total

44

Gain on sales

Loss on sales

91,741

357

84,071

18,053

175,813

18,41199

(Derivative Transactions)
1. Derivatives not subject to hedge accounting(1) Derivatives related to foreign currency
As of March 31, 2014
None
As of March 31, 2015

(Millions of yen)Type of derivatives

Contract
amounts

Due after one
year

Fair value

Foreign exchange
forwards
35,264
Sell CAD
Buy USD(*) Fair value is calculated based on the price obtained from the counterparty financial institutions.
Over-the-countertransactions

179

Valuation gain
(loss)
179

2. Derivatives subject to hedge accounting(1) Derivatives related to interest rate
As of March 31, 2014
Hedge accounting
method(Millions of yen)Type of derivatives

Principal items
hedgedContract
amounts

Due after one
year

Fair value

Interest rate swaps
payment fixed,
Long-term debt
4,760
4,760
(*)
receipt fluctuated(*) Fair value of derivatives for which special treatment of interest rate swaps is applied is included in the fair value of longterm 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, 2015
Hedge accounting
method(Millions of yen)Type of derivatives

Principal items
hedgedContract
amounts

Due after one
year

Fair value

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

45

(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
For the year ended
March 31, 2014
March 31, 2015
(1) Net assets excluding minority interests per share¥ 1,911.25
For the year ended
March 31, 2014

(2) Net income per share¥ 2,099.95
For the year ended
March 31, 2015

¥ 125.78¥ 53.29

183,690

77,820

0

0

(0)

(0)

183,690

77,8191,460,357,200

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 that thestock split was conducted on April 1, 2013.
2. Diluted net income per share is not presented because there are no dilutive potential of shares of common stock.
(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 have significant
impact on the consolidated financial statements.

46

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

As of March 31, 2014

As of March 31, 2015

(Assets)
Current assets
Cash and deposits

612,825884,704

Accounts receivable-trade34,987

26,196

Marketable securities

201,000

162,289

2,536

2,655

57

166

Raw materials and supplies

8,119

9,498

Advance payments-trade21

25

Prepaid expenses
Short-term loans receivable from subsidiaries andaffiliates
Other

693

637

92,468156,170

43,081

58,839Allowance for doubtful accounts(4,766)(6,533)Finished goods
Work in process and partly-finished construction

Allowance for investments in exploration(13,099)

Total current assets

991,025

1,281,550

Buildings, net

17,844

15,946Structures, net

121,032

111,393477

213

65,11063,12434

37

Tools, furniture and fixtures, net

2,693

3,379

Land

16,933

17,051198

164

Construction in progress

25,37042,755

Total tangible fixed assets

249,693

254,066

83,43576,482

1

2

Software

2,408

2,468

Other

4,901

4,555

Total intangible assets

90,746

83,508Fixed assets
Tangible fixed assets

Wells, net
Machinery and equipment, net
Vehicles, net

Leased assets, net

Intangible assets
Goodwill
Mining right47

(Millions of yen)Accounts

As of March 31, 2014

As of March 31, 2015

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

326,583

134,565

1,490,660

1,465,761

Investments in capital

0

Investments in capital of subsidiaries and affiliates

00Long-term loans receivable from employees
Long-term loans receivable from subsidiaries
and affiliates

30

29

98,009197,470425

347

Long-term time deposits

364,103120,270

Recoverable accounts under production sharing

112,313

101,564

Other

12,451

12,079Allowance for doubtful accounts
Allowance for recoverable accounts under
production sharing
Allowance for investments in exploration

(103)

(104)

(732)

(805)

(193,110)(134,202)

Total investments and other assets

2,210,632

1,896,974

2,551,072

2,234,548

3,542,098

3,516,098

Accounts payable-trade

3,760

3,378

Current portion of long-term debt

5,565

7,760

56

53

Accounts payable-other

13,95015,764

Accrued expenses

3,076

3,269

Income taxes payable

21,19622,752

Deferred tax liabilities

1,111

832

Advances received30

65

Deposits payable

390

323

976,253

796,573

Accrued bonuses to officers

97

68

Asset retirement obligations

845

890

Other

139

12

1,026,473

851,746

Long-term prepaid expenses

Total fixed assets
Total assets(Liabilities)
Current liabilities

Lease obligations

Deposits received from subsidiaries and affiliates

Total current liabilities

48

(Millions of yen)Accounts

As of March 31, 2014

As of March 31, 2015

Long-term liabilities
Long-term debt

203,077

224,872

149

120

Deferred tax liabilities

5,306

5,982

Accrued retirement benefits to employees

7,371

6,106

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

6,977

9,080

15,424

16,567

2,206

2,331

797

627

241,310

265,687

1,267,783

1,117,434

290,809290,809

Legal capital surplus

1,023,802

1,023,802

Total capital surplus

1,023,802

1,023,802

18

70

Lease obligations

Asset retirement obligations
Other
Total long-term liabilities
Total liabilities(Net assets)
Shareholders' equity
Common stock
Capital surplus

Retained earnings
Other retained earnings
Reserve for advanced depreciation of
non-current assets
Reserve for special account for advanced
depreciation of non-current assets
Reserve for special depreciation

13,044

10,942

Reserve for overseas investment loss

38,542

34,834

Mine prospecting reserve

8,815

14,952859,882

982,614920,354

1,043,414(5,248)(5,248)2,229,718

2,352,778

Unrealized holding gain on securities

44,59545,885

Total valuation, translation adjustments and others

44,59545,8852,274,314

2,398,664

3,542,098

3,516,098

50

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, 2014

Accounts

For the year ended
March 31, 2015

Net sales

456,325

417,670

Cost of sales

199,009

231,791

Gross profit

257,316

185,879

Exploration expenses

3,656

979

Selling, general and administrative expenses

43,82445,146

Operating income

209,835

139,754

Gain on sales of marketable securities

10,32018,146

Dividend income

56,02742,533Foreign exchange gain

28,02580,987

Other

23,631

25,908

Total other income

118,004

167,576

Other income

Other expenses
39,436

Loss on valuation of shares of subsidiaries and affiliates
Provision of allowance for investment loss
in exploration

9,359

7,377

Other

13,80913,634

Total other expenses

23,16960,448

Ordinary income

304,670

246,881

Income before income taxes

304,670

246,881

Income taxes-current

110,866

98,116

Income taxes-deferred

(535)

(345)

Total income taxes

110,330

97,770Net income

194,339

149,11050

(3) Non-Consolidated Statement of Changes in Net Assets
For the year ended March 31, 2014
(Millions of yen)
Shareholders' equity
Capital Surplus

Commonstock

Balance at the beginningof the period
Cumulative effects ofchanges in accounting
policies
Restated balance

Retained earnings

Other retained earnings
Reserve forReserve for
specialReserve forLegal capital Total capital
advancedaccount for Reserve foroverseas
surplussurplusdepreciation
advancedspecialinvestmentof non-current depreciation depreciation
loss
assetsof non-current
assets

290,809

1,023,802

1,023,802

647

38,603

290,809

1,023,802

1,023,802

647

38,603

Changes during the period
Provision of reserve foradvanced depreciationof non-current assets
Reversal of reserve foradvanced depreciationof non-current assets
Provision of reserve for
special account foradvanced depreciation of
non-current assets
Reversal of reserve for
special account foradvanced depreciation of
non-current assets
Provision of reserve for
special depreciation
Reversal of reserve for
special depreciation
Reversal of reserve foroverseas investment loss
Provision of mineprospecting reserve
Reversal of mineprospecting reserve18

50

12,490(92)(60)

Cash dividends paid
Net income
Other changes in items
other than those inshareholders' equity(net)Total changes during theperiodBalance at the end of theperiod290,809

1,023,802

1,023,802

51

18

50

12,397

(60)

18

50

13,04438,542

Valuation, translation
adjustments and others

Shareholders' equity
Retained earnings

Total
Other retained earnings
Total
Unrealized
valuation,
Treasury
Shareholders' holding gain translation
Retained Total
Mine
stock
retained
equityon securities adjustments
earnings
prospecting
brought earnings
and others
reserveforwardBalance at the beginningof the period
Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets8,581 704,104

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

34,827

34,8272,096,127

8,581 704,104

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

34,827

34,8272,096,127

Changes during the period
Provision of reserve foradvanced depreciationof non-current assets
Reversal of reserve foradvanced depreciationof non-current assets
Provision of reserve for
special account foradvanced depreciation of
non-current assets
Reversal of reserve for
special account foradvanced depreciation of
non-current assets
Provision of reserve for
special depreciation
Reversal of reserve for
special depreciation
Reversal of reserve foroverseas investment loss
Provision of mineprospecting reserve
Reversal of mineprospecting reserve

(18)

(50)

(12,490)
92
60
8,832

(8,832)(8,598)

8,598

Cash dividends paid

(25,921) (25,921)(25,921)(25,921)

Net income

194,339

194,339

194,339

Other changes in items
other than those inshareholders' equity(net)Total changes during theperiodBalance at the end of theperiod194,339

234 155,778

168,418

8,815 859,882

920,354

52(5,248)

9,768

9,768

9,768

168,418

9,768

9,768

178,186

2,229,718

44,59544,5952,274,314

For the year ended March 31, 2015
(Millions of yen)
Shareholders' equity
Retained earnings

Capital Surplus

Other retained earnings
Commonstock

Balance at the beginningof the period
Cumulative effects ofchanges in accounting
policies
Restated balance

Reserve forReserve for
specialReserve forLegal capital Total capital
advancedaccount for Reserve foroverseas
surplussurplusdepreciation
specialadvanced
investmentof non-current depreciation depreciation
loss
assetsof non-current
assets

290,809

1,023,802

1,023,802

18

50

13,04438,542

290,809

1,023,802

1,023,802

18

50

13,04438,542

Changes during the period
Provision of reserve foradvanced depreciationof non-current assets
Reversal of reserve foradvanced depreciationof non-current assets
Provision of reserve for
special account foradvanced depreciation of
non-current assets
Reversal of reserve for
special account foradvanced depreciation of
non-current assets
Provision of reserve for
special depreciation
Reversal of reserve for
special depreciation
Reversal of reserve foroverseas investment loss
Provision of mineprospecting reserve
Reversal of mineprospecting reserve

52
(0)

(50)

(2,102)(3,708)Cash dividends paid
Net income
Other changes in items
other than those inshareholders' equity(net)Total changes during theperiodBalance at the end of theperiod52
290,809

1,023,802

1,023,802

53

70

(50)

(2,102)(3,708)

10,942

34,834

Valuation, translation
adjustments and others

Shareholders' equity
Retained earnings

Total
Other retained earnings
Total
Unrealized
valuation,
Treasury
Total
Shareholders' holding gain translation
Retainedstock
Mineretained
equityon securities adjustments
earnings
prospecting
and othersbrought earnings
reserveforwardBalance at the beginningof the period
Cumulative effects ofchanges in accounting
policies
Restated balance

8,815 859,882

920,354235

235

8,815 860,118

920,590(5,248)2,229,718

44,59544,595235(5,248)2,229,954

Total net
assets2,274,314
235

44,59544,5952,274,549

Changes during the period
Provision of reserve foradvanced depreciationof non-current assets
Reversal of reserve foradvanced depreciationof non-current assets
Provision of reserve for
special account foradvanced depreciation of
non-current assets
Reversal of reserve for
special account foradvanced depreciation of
non-current assets
Provision of reserve for
special depreciation
Reversal of reserve for
special depreciation
Reversal of reserve foroverseas investment loss
Provision of mineprospecting reserve
Reversal of mineprospecting reserve

(52)
0

50

2,102
3,708
8,487

(8,487)(2,351)

2,351

Cash dividends paid

(26,286)(26,286)(26,286)(26,286)

Net income

149,110

149,110

149,110

149,110

Other changes in items
other than those inshareholders' equity(net)Total changes during theperiodBalance at the end of theperiod6,136 122,496

122,824

14,952 982,614 1,043,414

54(5,248)

1,290

1,290

1,290

122,824

1,290

1,290

124,1142,352,778

45,88545,8852,398,664

(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

55

7. 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, 2014

For the year ended March 31, 2015

Crude oil

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

1.2 MMbbls(3.2 Mbbls per day)
41.6 Bcf(113.9 MMcf per day)
9.0 MMboe(24.6 Mboe per day)

471.9 tons

482.6 tons

214.3 millions kWh

205.9 millions kWh

Subtotal

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)14.9 MMbbls(40.9 Mbbls per day)
241.9 Bcf
(662.6 MMcf per day)60.7 MMboe(166.3 Mboe per day)
9.8 MMbbls(27.0 Mbbls per day)61.7 MMbbls(168.9 Mbbls per day)
1.0 MMbbls(2.7 Mbbls per day)
37.8 Bcf(103.4 MMcf per day)
7.8 MMboe(21.3 Mboe per day)88.6 MMbbls(242.7 Mbbls per day)
321.2 Bcf
(880.0 MMcf per day)
148.9 MMboe(408.1 Mboe per day)

Iodine471.9 tons

482.6 tons

214.3 millions kWh

205.9 millions kWhNatural gas
Japan

Subtotal
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

Electric power generation

Note: 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 years ended March 31 regardless of a closing date of fiscal periods of its subsidiaries or affiliates.
4. The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX 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 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, and 114.8
MMbbls (314.6 Mbbls per day) of crude oil, 408.0 Bcf (1,117.7 MMcf per day) of natural gas, and in total 191.7 MMboe (525.1 Mboe per day) for theyear ended March 31, 2015.
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.

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

Category

For the year ended March 31, 2014 For the year ended March 31, 2015
Sales volume

Sales volume

Net sales

Crude oil

861 Mbbls

9,280

791 Mbbls

7,683

Natural gas(excluding LPG)

67,106 MMcf

90,454

66,679 MMcf

102,835

8 Mbbls74

7 Mbbls

58

Japan

LPG

Asia & Oceania

Net sales

Other

20,457

18,944

Subtotal

120,268

129,521Crude oil

12,151 Mbbls

131,032

11,015 Mbbls

103,831Natural gas(excluding LPG)

219,771 MMcf

329,884

204,231 MMcf

285,480

LPG

2,937 Mbbls

24,152

2,844 Mbbls

20,463

Subtotal

485,068

409,775

Eurasia(Europe & NIS)

Crude oil

8,697 Mbbls

96,341

9,946 Mbbls

94,049Middle East & Africa

Crude oil

57,420 Mbbls

621,51258,773 Mbbls

524,528

Crude oil

43 Mbbls586

33 Mbbls

329

40,240 MMcf

10,84838,575 MMcf

13,021Natural gas(excluding LPG)

Americas

Subtotal

11,435

13,351

Crude oil

79,171 Mbbls

858,753

80,558 Mbbls

730,422Natural gas(excluding LPG)

327,117 MMcf

431,187

309,485 MMcf

401,337

LPG

2,944 Mbbls

24,226

2,851 Mbbls

20,522

Total

Other

20,457

18,944

Total

1,334,625

1,171,226

Note: 1. The above amounts do not include the related consumption tax.
2. The Company's subsidiaries of which closing date for fiscal year is December 31 are principally consolidated their operating results
for the year ended December 31 except those subsidiaries prepared their financial statements for consolidation purpose as of the consolidation closing
date. However, the significant effects of the difference in fiscal periods were properly adjusted in consolidation.
3. Sales volumes are rounded to the nearest whole number.
4. Sales for a major customer and sales as a percentage of total net sales are as follows. Sales amount of PERTAMINA consists mostly of natural gas, andthey are sold to Japanese, Korean and Taiwanese customers in the form of LNG.

Customer

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

For the year ended
March 31, 2015
AmountRatio(Millions of yen)(%)

PERTAMINA

217,518

16.3

160,369

13.7

Idemitsu Kosan Co.,Ltd.

156,151

11.7

135,58911.6

57