ファConsolidated Financial Results for the Three Months ended June 30, 2014 [Japanese GAAP]
August 6, 2014
Note: The following report is an English translation of the Japanese-language original.
Company name

: INPEX CORPORATION

Stock Exchange on which the Company is listed : Tokyo Stock Exchange

Code number: 1605URL

Representative: Toshiaki Kitamura, President

Contact person: Kimihisa Kittaka, General Manager, Corporate Communications Unit

http://www.inpex.co.jp

TEL+81-3-5572-0233
Scheduled date of filing Quarterly Financial Report: August 11, 2014

Scheduled date of payment of cash dividends: ―Preparation of supplementary explanatory materials: Yes

Meeting of quarterly financial results presentation: No(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for the Three Months ended June 30, 2014 (April 1, 2014-June 30, 2014)(1) Consolidated operating results(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales

Operating income

Ordinary income

Net income

For the three months ended
June 30, 2014

Millions of yen

341,170

12.8

178,99713.7

194,08928.9

52,44774.9

June 30, 2013

302,505(2.7)

157,377(15.9)

150,624(27.3)

29,988(57.1)%

Millions of yen%

Millions of yen%

Millions of yen%(Note): Consolidated comprehensive income: for the three months ended June 30, 2014, ¥31,724 million; ((65.3)%)
for the three months ended June 30, 2013, ¥91,404 million; (64.3%)

Net income pershare—basic
For the three months ended
June 30, 2014
June 30, 2013

Net income pershare—diluted
Yen

Yen

―
―

35.91
20.54

(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
Millions of yen

As of June 30, 2014
As of March 31, 2014

4,069,288
4,038,139

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

Net assets

3,023,739
2,996,036

69.0
69.1

(Reference): Net assets excluding minority interests: as of June 30, 2014, ¥2,808,907 million
as of March 31, 2014, ¥2,791,108 million

2. Dividends
Cash dividends per share
At 1st quarter end
Yen

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

At 2nd quarter end
Yen

3,600.00

At 3rd quarter end
Yen―

At fiscal year end
Yen

9.00

Total
Yen

―

―

For the year ending
9.00
9.00
18.00
―
March 31, 2015 (forecast)(Note):1. Changes in projected dividends for the year ending March 31, 2015 from the previous forecast: None
2. 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.
3. 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.”ファ

3. Forecasted Consolidated Financial Results for the year ending March 31, 2015 (April 1, 2014-March 31, 2015)(Figures in % represent the changes from the previous fiscal period or year)

Net sales
Millions of yen
For the six months ending
September 30, 2014

658,000

Operating income% Millions of yen

1.2

330,000

Ordinary income% Millions of yen(4.1)

354,000% Millions of yen

1.0

Net income pershare

Net income
90,000

%

Yen

12.4

61.63

For the year ending
1,316,000 (1.4)
635,000 (13.4)
701,000 (6.5)
178,000 (3.1)
March 31, 2015
(Note): Changes in forecasted consolidated financial results for the year ending March 31, 2015 from the previous forecast: Yes

121.89Notes(1) Significant changes in scope of consolidation: None(Changes in the specified subsidiaries during the period due to change in scope of consolidation)(2) Adoption of accounting treatments which are exceptional for quarterly consolidated
financial statements: None(3) Changes in accounting policies, accounting estimates and restatement of corrections
1. Changes in accounting policies resulting from the revision of the accounting standards andother regulations
2. Other changes in accounting policies
3. Changes in accounting estimates
4. Restatement of corrections: Yes: None: None: None(Note): Please refer to “2.(3) Changes in accounting policies, accounting estimates and restatement of corrections” on page 5 for further information.

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

1,462,323,600 shares as of June 30, 2014
1,462,323,600 shares as of March 31, 2014
1,966,400 shares as of June 30, 2014
1,966,400 shares as of March 31, 2014
1,460,357,200 shares for the three months ended June 30, 2014
1,460,357,200 shares for the three months ended June 30, 2013

(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.

* Indication of quarterly review procedure implementation status
This quarterly earnings report is exempt from quarterly review procedure under the Financial Instruments and Exchange Act. The
review procedure for quarterly consolidated financial statements under the Financial Instruments and Exchange Act has not been
completed at the time of disclosure of this report.
*Explanation regarding the appropriate use of estimated consolidated financial results
The aforementioned forecasts are based on the currently available information and contain many uncertainties. The final results
might be significantly different from the aforementioned forecasts due to changes in business conditions including oil and natural
gas price levels, production and sales plans, project development schedules, government regulations and financial and tax schemes.
Please refer to “1.(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results” onpage 4.

ファ

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

At 2nd quarter end
Yen

At 3rd quarter end
Yen

At fiscal year end
Yen

Yen

Total
Yen

For the year ended
3,600.00
3,600.00
7,200.00――
March 31, 2014
For the year ending―
March 31, 2015
For the year ending
March 31, 2015
3,600.00
3,600.00
7,200.00―(forecast)(Note): The Company conducted a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date, however, for Class A
stock (which is not listed), no stock split was implemented. The Articles of Incorporation specifies that dividends of Class A stock areequivalent to dividends of a common stock prior to the stock split.

ファIndex of the Attachments
1.

2.

3.

4.

Qualitative Information / Financial Statements ....................................................................................................................

2(1) Explanation on Consolidated Financial Results ................................................................................................................

2(2) Explanation on Consolidated Financial Position...............................................................................................................

2(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results .......................

3

Notes Regarding Summary Information (Notes) ..................................................................................................................

4(1) Significant changes in scope of consolidation ..................................................................................................................

4(2) Adoption of accounting treatments which are exceptional for quarterly consolidated financial statements .....................

4(3) Changes in accounting policies, accounting estimates and restatement of corrections .....................................................

4

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

5(1) Consolidated Balance Sheet ..............................................................................................................................................

5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...........................................

7

Consolidated Statement of Income ...................................................................................................................................

7

Consolidated Statement of Comprehensive Income .........................................................................................................

8(3) Consolidated Statement of Cash Flows .............................................................................................................................

9(4) Notes to Consolidated Financial Statements .....................................................................................................................

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

11(Note on significant changes in shareholders’ equity) ......................................................................................................

11(Segment information)......................................................................................................................................................

12(Subsequent events) ..........................................................................................................................................................

12

Supplementary Information ..................................................................................................................................................

13(1) Production, Orders Received and Sales Performance .......................................................................................................

13

1

ファ

1. Qualitative Information / Financial Statements(1) Explanation on Consolidated Financial Results
During the three months ended June 30, 2014, consolidated net sales were ¥341.1 billion (increased by ¥38.6 billion, or 12.8%,
from the corresponding period of the previous fiscal year) due to increases in sales volume of crude oil and sales prices of crude
oil and natural gas, and the depreciation of Japanese yen against U.S. dollar. Net sales of crude oil increased by ¥35.8 billion, or
18.8%, to ¥226.4 billion, and net sales of natural gas increased by ¥1.8 billion, or 1.7%, to ¥109.7 billion. Sales volume of crude
oil increased by 1,629 thousand barrels, or 8.7%, to 20,319 thousand barrels. Sales volume of natural gas decreased by 5,836
million cf, or 7.2%, to 75,512 million cf. Sales volume of overseas natural gas decreased by 6,125 million cf, or 9.2%, to 60,354
million cf, and sales volume of domestic natural gas increased by 8 million m3, or 1.9%, to 406 million m3 (15,158 million cf).
The average sales price of overseas crude oil increased by US$5.78, or 5.6 %, to US$108.84 per barrel, and the average sales priceof overseas natural gas increased by US$0.51, or 4.1%, to US$13.10 per thousand cf. Meanwhile, the average sales price ofdomestic natural gas increased by ¥8.27, or 16.8%, to ¥57.51 per m3. The average exchange rate of Japanese yen against U.S.
dollar on consolidated net sales depreciated by ¥3.34, or 3.4%, to ¥101.99 per U.S. dollar from the corresponding period of theprevious fiscal year.
The increase of ¥38.6 billion in net sales was mainly derived from the following factors: regarding net sales of crude oil andnatural gas, increases in sales volume and unit sales price contributing ¥8.9 billion and ¥18.6 billion to the increase, respectively,
the depreciation of Japanese yen against U.S. dollar contributing ¥10.1 billion to the increase, and an increase in net sales
excluding crude oil and natural gas of ¥0.9 billion.
Cost of sales for the three months ended June 30, 2014 increased by ¥13.7 billion, or 11.7%, to ¥131.8 billion due to increases
in royalty owing to an increase in net sales mainly in the ADMA block, depreciation and amortization and the depreciation ofJapanese yen against U.S. dollar. Exploration expenses increased by ¥1.3 billion, or 18.5%, to ¥8.5 billion due mainly to anincrease in exploration activities in the Americas and Oceania regions. Selling, general and administrative expenses increased by¥1.9 billion, or 9.7%, to ¥21.7 billion. As a result, operating income increased by ¥21.6 billion, or 13.7%, to ¥178.9 billion.
Other income increased by ¥10.5 billion, or 124.5 %, to ¥19.0 billion due to increases in foreign exchange gain and equity inearnings of affiliates. Other expenses decreased by ¥11.3 billion, or 74.3%, to ¥3.9 billion. As a result, ordinary income andincome before income taxes and minority interests increased by ¥43.4 billion, or 28.9%, to ¥194.0 billion.
Total amount of current income taxes increased by ¥41.9 billion, or 44.0%, to ¥137.3 billion, and deferred income taxes were¥0.4 billion, income before minority interests increased by ¥24.4 billion, or 76.9%, to ¥56.3 billion, and minority interests were
¥3.9 billion. As a result of the above effects, net income for the three months ended June 30, 2014 increased by ¥22.4 billion, or
74.9%, to ¥52.4 billion from the corresponding period of the previous fiscal year.
Financial results by segment are as follows:
1)

2)

3)

4)

5)

Japan
Net sales increased by ¥5.2 billion, or 20.5%, to ¥30.6 billion due to increases in sales volume and sales price of natural gas.
Operating income increased by ¥1.3 billion, or 37.8%, to ¥5.0 billion.
Asia & Oceania
Net sales increased by ¥1.5 billion, or 1.3%, to ¥114.9 billion due to increases in sales volume of crude oil and sales prices ofcrude oil and natural gas, and the depreciation of Japanese yen against U.S. dollar. Operating income increased by ¥3.2 billion, or
5.8%, to ¥58.6 billion.
Eurasia (Europe & NIS)
Net sales increased by ¥9.1 billion, or 34.5%, to ¥35.4 billion due to increases in sales volume and sales price of crude oil and thedepreciation of Japanese yen against U.S. dollar. Operating income increased by ¥4.7 billion, or 36.9%, to ¥17.4 billion.
Middle East & Africa
Net sales increased by ¥21.7 billion, or 16.1%, to ¥156.7 billion due to increases in sales volume and sales price of crude oil andthe depreciation of Japanese yen against U.S. dollar. Operating income increased by ¥16.0 billion, or 17.8%, to ¥106.2 billion.
Americas
Net sales increased by ¥1.0 billion, or 47.0%, to ¥3.3 billion due to an increase in sales price of natural gas and the depreciationof Japanese yen against U.S. dollar, despite a decrease in sales volume of crude oil and natural gas. Operating loss increased by¥3.6 billion, or 166.0%, to ¥5.8 billion due to an increase in exploration expenses and others.

(2) Explanation on Consolidated Financial Position
Total assets as of June 30, 2014 increased by ¥31.1 billion to ¥4,069.2 billion from ¥4,038.1 billion as of March 31, 2014. This isdue mainly to an increase in tangible fixed assets by ¥83.4 billion owing to an increase in construction in progress.
Meanwhile, total liabilities increased by ¥3.4 billion to ¥1,045.5 billion from ¥1,042.1 billion as of March 31, 2014. Current
liabilities increased by ¥9.9 billion to ¥385.5 billion and long-term liabilities decreased by ¥6.4 billion to ¥659.9 billion.
Net assets increased by ¥27.7 billion to ¥3,023.7 billion. Minority interests in net assets increased by ¥9.9 billion to ¥214.8
billion.
Cash and cash equivalents as of June 30, 2014 totaled ¥93.3 billion reflecting a net decrease of ¥24.1 billion from ¥117.5
billion at the end of the previous fiscal year.

2ファ

Cash flows from operating activities, investing activities and financing activities are as follows:
1) Cash flows from operating activities
Net cash provided by operating activities was ¥42.9 billion (decreased by ¥11.1 billion from the corresponding period of theprevious fiscal year). This is due mainly to an increase in accounts receivable-trade despite an increase in income before
income taxes.
2) Cash flows from investing activities
Net cash used in investing activities decreased by ¥6.2 billion to ¥64.9 billion. This is due mainly to an increase in proceedsfrom time deposits and a decrease in payments for long-term time deposits despite a decrease in collection of long-term loans
receivable and an increase in payments for purchases of tangible fixed assets.
3) Cash flows from financing activities
Net cash used in financing activities increased by ¥12.9 billion to ¥1.0 billion. This is due mainly to a decrease in proceedsfrom long-term debt.

(3) Explanation regarding future forecast information such as Forecasts for Consolidated Financial Results
Forecasts for consolidated financial results for the six months ending September 30, 2014 and the year ending March 31, 2015
have been revised from the previous forecasts presented on May 9, 2014, taking into consideration the consolidated financial
results for the three months ended June 30, 2014.
Forecasts for consolidated financial results for the six months ending September 30, 2014
Net sales(Millions of yen)

Operating income

Ordinary income

Net income

Previous Forecasts: A

643,000

309,000

336,000

80,000

Revised Forecasts: B

658,000

330,000

354,000

90,000

Increase (Decrease): B－A

15,00021,00018,00010,000

2.3

6.8

5.4

12.5

Percentage change (%)

Forecasts for consolidated financial results for the year ending March 31, 2015
Net sales(Millions of yen)

Operating income

Ordinary income

Previous Forecasts: A

1,331,000

638,000

694,000

171,000

Revised Forecasts: B

1,316,000

635,000

701,000

178,000

Increase (Decrease): B－A(15,000)(3,000)

7,000

7,000

(1.1)

(0.5)

1.0

4.1

Percentage change (%)

Net income

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

Revised Forecasts

Crude oil price(Brent)Full Year (April 1, 2014 - March 31, 2015) :US$ 105.0/bbl (Average)

1st quarter (actual) :From 2nd quarter:
Full Year :US$ 109.8/bbl
US$ 105.0/bbl
US$ 106.2/bbl (Average)

Exchange rate

Full Year (April 1, 2014 - March 31, 2015) :¥100.0/US$ (Average)

1st quarter (actual) :From 2nd quarter:
Full Year :¥102.2/US$¥100.0/US$¥100.5/US$ (Average)

Note: Crude oil prices at which the Company sells products depend on the type of crude oil, and there are also price differences
between the crude oil price and Brent price. Price differences are caused by its quality and its pricing range which is affected by
the market conditions. Most of the crude oil prices the Company sells are lower than Brent price.

3

ファ

2. Notes Regarding Summary Information (Notes)(1) Significant changes in scope of consolidation:
None(2) Adoption of accounting treatments which are exceptional for quarterly consolidated financial statements:
None(3) Changes in accounting policies, accounting estimates and restatement of corrections:
1) Adoption of the Accounting Standard for Retirement Benefits
Effective the three months ended June 30, 2014, 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 May 17, 2012) and has changed the calculation methods for retirement benefit obligations andservice 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 the employees’ average remaining service period to a method of using a single weighted average discountrate reflecting the estimated payment 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 three months ended June 30, 2014.
As a result, liability for retirement benefits decreased by ¥246 million while retained earnings increased by ¥235 million
as of April 1, 2014. The impact on operating income, ordinary income and income before income taxes and minority interests
for the three months ended June 30, 2014 was immaterial.

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

As of March 31, 2014

As of June 30, 2014

(Assets)
Current assets
Cash and deposits

650,187

635,295

Accounts receivable-trade110,395

147,053

Marketable securities

201,000

184,668

Inventories

25,48527,318

Other

170,779

188,604

Less allowance for doubtful accounts(17,643)(17,286)

Total current assets

1,140,204

1,165,654

Buildings and structures, net

145,936

142,113

Wells, net

25,34824,033

Machinery, equipment and vehicles, net

112,898

110,139Land

19,736

19,672

Construction in progress

626,520

713,457

Other, net

21,33925,769Total tangible fixed assets

951,779

1,035,185

Goodwill

81,08079,390

Other

358,098

352,138

Total intangible assets

439,178

431,528

Investment securities

476,407454,203

Recoverable accounts under production sharing

685,990

701,518

Other

472,175

411,376

(885)

(850)

Less allowance for recoverable accounts under
production sharing(123,483)(126,058)

Less allowance for investments in exploration(3,226)(3,269)1,506,977

1,436,919

2,897,935

2,903,634

4,038,139

4,069,288

Fixed assets
Tangible fixed assets

Intangible assets

Investments and other assets

Less allowance for doubtful accounts

Total investments and other assets
Total fixed assets
Total assets

5

(Millions of yen)Accounts

As of March 31, 2014

As of June 30, 2014

(Liabilities)
Current liabilities
Accounts payable-trade

46,811

52,846

Short-term loans

21,95425,498

Income taxes payable

91,19885,467

Provision for exploration projects

9,816

9,049

Accrued bonuses to officers

110

31

Asset retirement obligations

2,353

1,804

Other

203,425

210,881

Total current liabilities

375,670

385,580

561,674

551,345

Liability for retirement benefits

7,793

7,492

Provision for loss on business

6,977

6,868

234

245

Asset retirement obligations

25,95428,948

Other

63,79865,068

Total long-term liabilities

666,432

659,968

1,042,102

1,045,548

Common stock

290,809290,809

Capital surplus

679,287

679,287

Retained earnings

1,532,876

1,572,415

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

2,537,264

Unrealized holding gain on securities

44,73744,374

Unrealized loss from hedging instruments(17,578)(11,242)

Translation adjustments

266,224

238,510

Total accumulated other comprehensive income

293,382271,642

Minority interests

204,928

214,832

Total net assets

2,996,036

3,023,739

Total liabilities and net assets

4,038,139

4,069,288

Long-term liabilities
Long-term debt

Accrued special repair and maintenanceTotal liabilities(Net assets)
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)
For the three months ended
June 30, 2014

For the three months ended
June 30, 2013

Accounts
Net sales

302,505

341,170

Cost of sales

118,034

131,807

Gross profit

184,470

209,362

Exploration expenses

7,236

8,575

Selling, general and administrative expenses

19,85521,789Operating income

157,377

178,997

Interest income

4,726

2,328

Dividend income

1,281

1,479

Equity in earnings of affiliates

―

3,511

Foreign exchange gain

―

9,913

Other

2,458

1,774

Total other income

8,466

19,008616

604

Equity in losses of affiliates

2,137

―

Provision for allowance for recoverable accounts under
production sharing

1,090

586

404

1,204

Foreign exchange loss

8,650

―

Other

2,318

1,521

Total other expenses

15,2193,917

Ordinary income

150,624

194,089

Income before income taxes and minority interests

150,624

194,089

Income taxes-current

95,345

137,302

Income taxes-deferred

23,426438

Total income taxes

118,772

137,741

Income before minority interests

31,852

56,347

Minority interests

1,863

3,900

Net income

29,98852,447

Other income

Other expenses
Interest expense

Provision for exploration projects

7

Consolidated Statement of Comprehensive Income(Millions of yen)
For the three months ended
June 30, 2013

Accounts

For the three months ended
June 30, 2014

31,852

56,347

Unrealized holding gain (loss) on securities

16,796(363)

Unrealized loss from hedging instruments(7,450)―Translation adjustments

71,629(29,776)

Share of other comprehensive income of associates
accounted for by the equity method(21,423)

5,517

Total other comprehensive income

59,551(24,623)

91,40431,724

Shareholders of INPEX CORPORATION

87,92230,706

Minority interests

3,481

1,017

Income before minority interests
Other comprehensive income

Comprehensive income
Total comprehensive income attributable to8

(3) Consolidated Statement of Cash Flows(Millions of yen)
For the three months
ended June 30, 2013

Accounts

For the three months
ended June 30, 2014

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

150,624

194,089

Depreciation and amortization

11,835

12,886

Amortization of goodwill

1,690

1,690

Provision for allowance for recoverable accounts under
production sharing

5,169

2,574

Provision for exploration projects(2,176)(750)

Provision for accrued retirement benefits to employees

77―

Other provisions

55

(72)

Liability for retirement benefits

―

(51)

(6,008)(3,808)616

604

Foreign exchange loss (gain)

9,215(6,495)Equity in (earnings) losses of affiliates

2,137(3,511)

14,224

18,536(9,704)(13,671)6,717(36,710)Inventories

210(1,904)

Accounts payable-trade

(615)

5,987

Other

19,032

10,003

Subtotal

203,103179,396

Interest and dividends received

7,595

9,756

Interest paid

(322)

(200)

(156,250)(146,004)

54,12642,949Interest and dividend income
Interest expense

Recovery of recoverable accounts under production sharing(capital expenditures)
Recoverable accounts under production sharing(operating expenditures)
Accounts receivable-trade

Income taxes paid
Net cash provided by operating activities

9

(Millions of yen)
For the three months
ended June 30, 2013

Accounts

For the three months
ended June 30, 2014

Cash flows from investing activities
Payments for time deposits(50,125)(40,961)

Proceeds from time deposits

38,501

163,306

Payments for long-term time deposits(133,240)(81,698)

Proceeds from long-term time deposits

15,000―

Payments for purchases of tangible fixed assets(74,180)(108,128)

Proceeds from sales of tangible fixed assets

231

27

Payments for purchases of intangible assets

(365)

(791)

Proceeds from sales and redemptions of marketablesecurities

85,14435,000

Payments for purchases of investment securities(10,217)(5,239)33,31915,000(26,364)(20,571)

Decrease (increase) in short-term loans receivable

(690)

(972)

Long-term loans made(14)

(2,056)

Collection of long-term loans receivable

71,167

81

Payments for purchase of mining rights(20,222)(17,929)874(1)(71,182)(64,935)74

20

Proceeds from long-term debt

21,064

5,058

Repayments of long-term debt

(285)

(4,239)Proceeds from minority interests for additional shares

1,451

8,886

(10,356)(10,653)

(7)

(79)

11,938(1,006)

Effect of exchange rate changes on cash and cash equivalents

28,095(1,180)Net increase (decrease) in cash and cash equivalents

22,977(24,173)

Cash and cash equivalents at beginning of the period

199,858

117,530

Cash and cash equivalents at end of the period

222,836

93,357

Proceeds from sales and redemptions of investment
securities
Investment in recoverable accounts under production sharing(capital expenditures)

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

Cash dividends paid
Other
Net cash provided by (used in) financing activities10(4) Notes to Consolidated Financial Statements(Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going concern)
For the three months ended June 30, 2014 (April 1, 2014 through June 30, 2014):
None(Note on significant changes in shareholders’ equity)
For the three months ended June 30, 2014 (April 1, 2014 through June 30, 2014):
None

11

(Segment information)

I.

For the three months ended June 30, 2013 (April 1, 2013 through June 30, 2013)

1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

25,396

113,435

26,368135,001

2,302

302,505－

302,505

－

－

－

－

－

－

－

－

Total

25,396

113,435

26,368135,001

2,302

302,505－

302,505

Segment income (loss)

3,695

55,375

12,73590,203(2,193)

159,816(2,438)157,377

Total

*1

*2

Net sales
Sales to third parties
Intercompany sales andtransfers between segments

Notes:

1. Adjustments of segment income of ¥ (2,438) million include elimination of inter-segment transactions of ¥58 million andcorporate expenses of ¥ (2,497) million. Corporate expenses are mainly amortization of goodwill and general administrative
expenses that are not allocated to a reportable segment.
2. Segment income is reconciled with operating income on the consolidated statement of income.

2. Information on impairment loss from fixed assets, goodwill and other items by reportable segment
None

II. For the three months ended June 30, 2014 (April 1, 2014 through June 30, 2014)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania

30,602

114,955

35,473

156,7543,384

341,170－

341,170

－

－

－

－

－

－

－

－

Total

30,602

114,955

35,473

156,7543,384

341,170－

341,170

Segment income (loss)

5,092

58,603

17,438106,246(5,834)

181,545(2,548)

178,997

Total

*1

*2

Net sales
Sales to third parties
Intercompany sales andtransfers between segments

Notes:

1. Adjustments of segment income of ¥ (2,548) million include elimination of inter-segment transactions of ¥52 million andcorporate expenses of ¥ (2,600) million. Corporate expenses are mainly amortization of goodwill and general administrative
expenses that are not allocated to a reportable segment.
2. Segment income is reconciled with operating income on the consolidated statement of income.

2. Information on impairment loss from fixed assets, goodwill and other items by reportable segment
None(Subsequent events)

For the three months ended June 30, 2014 (April 1, 2014 through June 30, 2014):
None

12

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

Category
Crude oil
Natural gas

Japan

Subtotal

For the three months ended
June 30, 2013
0.3 MMbbls(3.3 Mbbls per day)10.3 Bcf(113.3 MMcf per day)
2.2 MMboe(24.6 Mboe per day)For the three months ended
June 30, 2014
0.3 MMbbls(3.0 Mbbls per day)10.1 Bcf(110.7 MMcf per day)
2.2 MMboe(23.8 Mboe per day)

119.3 tons

128.4 tons

55.5 million kWh56.7 million kWh

4.5 MMbbls(49.7 Mbbls per day)
58.3 Bcf(640.7 MMcf per day)15.5 MMboe(170.6 Mboe per day)
2.4 MMbbls(26.9 Mbbls per day)15.2 MMbbls(166.9 Mbbls per day)
0.1 MMbbls(1.1 Mbbls per day)
9.4 Bcf(103.3 MMcf per day)
1.8 MMboe(19.4 Mboe per day)22.6 MMbbls(248.0 Mbbls per day)
78.0 Bcf(857.4 MMcf per day)37.2 MMboe(408.3 Mboe per day)

3.5 MMbbls(38.2 Mbbls per day)61.3 Bcf(673.5 MMcf per day)15.0 MMboe(165.0 Mboe per day)
2.3 MMbbls(25.5 Mbbls per day)14.7 MMbbls(162.0 Mbbls per day)
0.2 MMbbls(2.4 Mbbls per day)
9.2 Bcf(101.3 MMcf per day)
1.9 MMboe(20.4 Mboe per day)21.0 MMbbls(231.0 Mbbls per day)80.6 Bcf(885.5 MMcf per day)
36.1 MMboe(396.7 Mboe per day)

119.3 tons

128.4 tons

55.5 million kWh56.7 million kWh

IodineElectric power
generation
Crude oil
Asia & Oceania

Natural gas
Subtotal

Eurasia(Europe & NIS)

Crude oil

Middle East & Africa

Crude oil
Crude oil

AmericasNatural gas
Subtotal
Crude oil
Natural gas

Total

Subtotal
IodineElectric power
generation

Notes:

1. The volume of LPG produced overseas is included in ‘Crude oil.’
2. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
3. The production by the Company’s affiliates accounted for by the equity method is included in the figures above.
Also the production volume is a result for the three months ended June 30 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 Groupcorresponds to the net economic take of the group.
Figures calculated by multiplying the gross production volume by the Company’s interest share are 30.4 MMbbls (334.0 Mbbls perday) of crude oil, 106.7 Bcf (1,172.9 MMcf per day) of natural gas, and in total 50.4 MMboe (554.0 Mboe per day) for the threemonths ended June 30, 2013, and 28.5 MMbbls (313.0 Mbbls per day) of crude oil, 104.4 Bcf (1,147.3 MMcf per day) of naturalgas, and in total 48.1 MMboe (528.7 Mboe per day) for the three months ended June 30, 2014.
5. Boe means barrels of oil equivalent.
6. Iodine is refined by other company on consignment.
7. Figures are rounded to one decimal place.

132) Orders received
Disclosure on this information is omitted because the amount of orders received is accounted for a minor portion of total sales.

3) Actual sales
The following table shows sales by segment:

Segment

CategoryJapan

Crude oil
Natural gas(excluding LPG)
LPG

178 Mbbls

1,843

210 Mbbls

2,349

14,869 MMcf

19,62015,158 MMcf

23,3602 Mbbls

17

2 Mbbls

14

Other

3,915

Subtotal

Asia & Oceania

Americas

Total

Notes:

4,877

25,396

Crude oil
Natural gas(excluding LPG)
LPG

30,602

2,697 Mbbls

27,3332,826 Mbbls

31,851

56,121 MMcf

80,19350,745 MMcf

77,153795 Mbbls

5,908

734 Mbbls

5,950

Subtotal
Eurasia(Europe & NIS)
Middle East & Africa(Millions of yen)
For the three months ended
June 30, 2014
Sales volume
Net sales

For the three months ended
June 30, 2013
Sales volume
Net sales

113,435

114,955

Crude oil

2,519 Mbbls

26,3683,089 Mbbls

35,473

Crude oil

13,284 Mbbls

135,001

14,188 Mbbls

156,754

11 Mbbls

117

6 Mbbls

66

10,358 MMcf

2,185

9,609 MMcf

3,317

18,689 Mbbls

190,663

20,319 Mbbls

226,495

81,348 MMcf

101,999

75,512 MMcf

103,831797 Mbbls

5,926

735 Mbbls

5,965

Crude oil
Natural gas(excluding LPG)
Subtotal

2,302

Crude oil
Natural gas(excluding LPG)
LPG

3,384

Other

3,915

4,877

Total

302,505

341,170

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 three months ended March 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 inconsolidation.
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 mostlyof natural gas, and they are sold to Japanese, Korean, and Taiwanese customers in the form of LNG.

For the three months ended
June 30, 2013
CustomerAmounts(Millions of yen)

For the three months ended
June 30, 2014

Ratio

Amounts

Ratio

(%)

(Millions of yen)(%)

PERTAMINA

51,97217.2

50,437

14.8

Idemitsu Kosan Co., Ltd.

21,421

7.1

46,161

13.5

14