[Translation for Reference Purposes Only]
This document has been translated from a part of the Japanese original for reference purposes only. In the eventof any discrepancy between this translated document and the Japanese original, the Japanese original shallprevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms ofdamages arising from the translation.

Securities Code: 1605
March 6, 2023
To Those Shareholders with Voting Rights
Takayuki Ueda
Representative Director, President & CEO
INPEX CORPORATION
5-3-1 Akasaka, Minato-ku, TokyoNOTICE OF THE 17th ORDINARY GENERAL MEETING OF SHAREHOLDERS
Dear Shareholders,
We are pleased to announce that the 17th Ordinary General Meeting of Shareholders of INPEX CORPORATION(hereinafter the “Company”) will be held as described below.
When convening this general meeting of shareholders, the Company takes measures for providing information that
constitutes the content of reference documents for the ordinary general meeting of shareholders, etc. (items forwhich measures for providing information in electronic format are to be taken) in electronic format, and posts thisinformation as “Information Materials for the 17th Ordinary General Meeting of Shareholders” on the Company’s
website. Please access the Company’s website using the Internet address shown below to review the information.
The Company’s website: https://www.inpex.co.jp/english/ir/shareholder/meeting.html
In addition to posting items for which measures for providing information in electronic format are to be taken on
the website listed above, the Company also posts this information on the website where information materials forthe general meeting of shareholders are posted and the website of Tokyo Stock Exchange, Inc. (TSE). To access thisinformation, access the websites by using the Internet address given below, input the required information and click“Search.”Website where information materials for the general meeting of shareholders are posted:
https://d.sokai.jp/1605/teiji/ (in Japanese only)
TSE website (Listed Company Search):https://www2.jpx.co.jp/tseHpFront/JJK020010Action.do?Show=Show
If you do not attend the meeting in person, you may exercise your voting rights via the Internet or in writing. Please
review the attached Reference Documents for the Ordinary General Meeting of Shareholders before exercising yourvoting rights by 5:25 p.m. on March 27, 2023 (Monday).
When exercising your voting rights, please refer to “Procedures to Exercise Voting Rights” below.

1[Translation for Reference Purposes Only]
1. Date and Time:
2. Place:

Tuesday, March 28, 2023 at 10:00 a.m. (Japan Time)
Heian Room, 1st floor, The Okura Prestige Tower, The Okura Tokyo
2-10-4 Toranomon, Minato-ku, Tokyo

3. Agenda of the Meeting:
Matters to be reported: 1. Business Report, Consolidated Financial Statements for the 17th fiscal year
(from January 1, 2022 to December 31, 2022) and results of audits by the
Accounting Auditor and the Audit & Supervisory Board of the Consolidated
Financial Statements
2. Non-Consolidated Financial Statements for the 17th fiscal year (from January 1,
2022 to December 31, 2022)
Proposals to be resolved:
Proposal No. 1: Appropriation of Surplus
Proposal No. 2: Reduction of Amount of Legal Capital Surplus
Proposal No. 3: Election of Twelve (12) Directors
Proposal No. 4: Election of Five (5) Audit & Supervisory Board Members
4. Matters to be decided upon convocation(1) Among items for which measures for providing information in electronic format are to be taken, thefollowing items are not provided in the documents delivered to shareholders who have requested the deliveryof paper-based documents as provided for by the provisions of laws and regulations and Article 27 of the
Articles of Incorporation of the Company.
Accordingly, the documents that are delivered to shareholders who have requested the delivery of paperbased documents are part of the documents included in the scope of audits by the Audit & Supervisory Board
Members and the Accounting Auditor when they create their respective audit reports.
(i) “Items Related to Accounting Auditor,” “Systems for Ensuring Proper Operations of the Company andStatus of Operations of such Systems” and “Basic Policy Regarding Control of the Company” in theBusiness Report(ii) “Consolidated Statement of Changes in Net Assets” and “Notes to Consolidated Financial Statements”
in the Consolidated Financial Statements(iii) “Non-Consolidated Statement of Changes in Net Assets” and “Notes to Non-Consolidated Financial
Statements” in the Non-Consolidated Financial Statements(2) When you exercise your voting rights both via the Internet and by the Voting Rights Exercise Form, thevoting right exercised via the Internet shall be deemed and treated as your valid vote. When you exercise
your voting rights twice or more via the Internet, the last shall be deemed and treated as your valid vote.
(3) If you return the Voting Rights Exercise Form without an indication of your vote for or against a proposal,
it will be treated as a vote “for” the proposal.


Those attending the Ordinary General Meeting of Shareholders on the day are requested to submit the enclosed
Voting Rights Exercise Form at the reception desk.

2

[Translation for Reference Purposes Only]

Flow of General Meeting of Shareholders
The following content will be posted on the Company’s website. Please use it as reference for the meeting.
Viewing of disclosure documents
Various disclosure documents can be viewed from the “IR” (Investor Relations) and “Sustainability”
sections of the Company’s website.

Comments before meeting
The Company will receive comments relevant to the agenda of the meeting. The Company plans tocover matters of great interest to shareholders at the General Meeting of Shareholders.
Instructions on submitting comments are provided later in this document.
Websitehttps://www.inpex.co.jp/english/ir/shareholder/meeting.html
From the arrival of thisNotice until Monday,
March 27, 2023
Prior to the holding of theGeneral Meeting of
Shareholders

Period for receiving comments before meeting
From Monday, March 6, 2023 at 9:00 a.m. to Friday, March 17, 2023 at 5:00 p.m. (Japan Time)
If Viewing Meeting by Live Stream
Exercise your voting rights beforehand.

If Attending Meeting in Person
Prepare the Voting Rights Exercise Form and this Notice at
hand.

Deadline:
Monday, March 27, 2023 at 5:25 p.m. (Japan Time)

Voting Rights Exercise Form

Smartphone

For the details, please refer to the “Procedures to Exercise
Voting Rights.”

3

We ask that you bring the reference materials making up
this Notice for the purpose of conserving resources.

[Translation for Reference Purposes Only]
If Viewing Meeting by Live Stream

If Attending Meeting in Person

We will provide a live stream via the Internet to enable the Guide to the Venue for the General Meeting ofviewing of the proceedings of the General Meeting of
Shareholders
Shareholders from outside the venue. Please view byaccessing the following URL or QR code* and entering your Place:
ID and common password. Note that the live stream will
Heian Room, 1st floor, The Okura Prestige Tower, The
enable viewing only. Therefore, please exercise your voting Okura Tokyo
rights beforehand in writing or via the Internet. Instructions 2-10-4 Toranomon, Minato-ku, Tokyo
on exercising voting rights are provided later in this
TEL: +81-3-3582-0111
document.
Transportation:
Date and time of streaming:
Tuesday, March 28, 2023 at 10:00 a.m. (Japan Time)URL of Live Stream:
https://v.sokai.jp/1605/2023/inpex/ (in Japanese only)
Tuesday, March 28, 2023
On the day of the General
Meeting of Shareholders

Toranomon Hills Station (Tokyo Metro Hibiya Line) Exit
A1 or Exit A2, 5-minute walk
Toranomon Station (Tokyo Metro Ginza Line) Exit 3, 10minute walkTameike-sanno Station (Tokyo Metro Ginza Line or
Namboku Line) Exit 14, 10-minute walk

Matters to Note on Viewing the Live Stream•

You may encounter issues in viewing the live stream due
to factors involving your device or Internet connection
environment or circumstances involving your network
connection. Telecommunication fees and other such costs
incurred for viewing the live stream are to be borne by
the shareholder.

•

The Company will not be receiving questions or opinionsfrom shareholders during the live stream. It is not
permitted for shareholders to capture still images, ormake any video or audio recording of the General
Meeting of Shareholders.

•

Provision of your ID and password to a third party isstrictly prohibited.

* This requires installation of an application or functionalitythat enables a device to read QR codes. (The QR code is a
registered trademark of DENSO WAVE
INCORPORATED.)
The following content will be sequentially posted on the Company’s website.
After the conclusion of theGeneral Meeting of
Shareholders
Video of Chairperson’s Report

Notice of Results of Exercise of
Voting Rights

4

Response to Questions on the day of
the General Meeting of Shareholders

[Translation for Reference Purposes Only]

Measures to Prevent the Spread of COVID-19 (Requests)
Measures taken by the Company to prevent the spread of coronavirus disease (COVID-19) at this General
Meeting of Shareholders are described below. The understanding and cooperation of all shareholders isrequested in the implementation of these measures.
1. Requests to Shareholders

Shareholders who are considering attending this General Meeting of Shareholders are requested tocarefully assess their plans based on the current status of the COVID-19 pandemic.

Those suffering from symptoms such as coughing or fever are requested to refrain from attending theGeneral Meeting of Shareholders, out of consideration for the impact on their personal health and thehealth of those around them.

The elderly, those with underlying medical conditions, and pregnant women in particular are strongly
requested not to attend the General Meeting of Shareholders and to instead exercise voting rights
beforehand in writing or via the Internet.

Fewer seats will be available at the venue than usual, and the seating will be widely spaced. Attendees
may have to be declined admission to the meeting venue if the seating reaches capacity.



In accordance with government policy, wearing of face masks will be up to individual discretion.
However, depending on the current conditions regarding COVID-19 or influenza, shareholders may
once again be requested to cooperate with wearing a face mask while inside the venue.



Those attending the General Meeting of Shareholders will have their body temperature taken at
reception. Those with a fever and those apparently unwell will be refused entry to the venue. Your
understanding is requested in advance.

2. Venue Operation

As a proactive precautionary measure, the Company’s staff will check their health condition including
body temperature prior to attending, and wear face masks at the venue.

No souvenirs will be distributed at the General Meeting of Shareholders. Your kind understanding isrequested in this matter.

This year, the General Meeting of Shareholders will be streamed live so that you may watch from
home, etc. For information on how to watch the live stream, please view “Guide to the Live Stream of
the General Meeting of Shareholders and Preliminary Comment Reception” at the end of this Notice.



The General Meeting of the Shareholders will be presented by video on the Company’s website after
the conclusion of the General Meeting of Shareholders.

We regret any inconvenience that these measures may cause, and request your understanding in theirapplication.
Please note that these measures are subject to change depending on the status of the pandemic, guidanceissued by relevant authorities, and other factors. Any changes will be announced on the Company’s website.
The Company’s website: https://www.inpex.co.jp/english/

5[Translation for Reference Purposes Only]

Procedures to Exercise Voting Rights
Voting rights at the Ordinary General Meeting of Shareholders are important rights of the shareholders in
relation to decision-making by all the shareholders. Please refer to the Reference Documents for the Ordinary
General Meeting of Shareholders and exercise your voting rights. You may exercise your voting rights by anyof the following three methods.
Exercise of Voting Rights in Writing (on the Voting Rights Exercise Form)
Please indicate your votes for or against each of the proposals on the enclosed Voting Rights Exercise
Form, and send the form by mail.
Deadline: Arrival by Monday, March 27, 2023 at 5:25 p.m. (Japan Time)
Exercise of Voting Rights by Electromagnetic Means (via the Internet)
Please see the “Procedures to Exercise Voting Rights via the Internet” on the next page and exercise yourvoting rights. If you have any questions, please contact the Stock Transfer Agency Department of Mizuho
Trust & Banking Co., Ltd. stated in “D. Inquiries” on the next page.
Deadline: Monday, March 27, 2023 at 5:25 p.m. (Japan Time)
Exercise of Voting Rights by Attending the Ordinary General Meeting of Shareholders
Those attending the Ordinary General Meeting of Shareholders on the day are requested to bring thisNotice and to submit the enclosed Voting Rights Exercise Form at the reception desk.
Date and time: Tuesday, March 28, 2023 at 10:00 a.m. (Japan Time)

Should you choose to exercise your voting rights via a proxy, you may designate a shareholder other thanyourself, who holds voting rights with respect to the Company, as your proxy. It should be noted, however,that it will be necessary to submit a document certifying said individual’s proxy.

In the event of a diverse exercise of voting rights, it is requested that you notify the Company to that effect,
together with the reasons, by no later than three days before the General Meeting of Shareholders.



In the case you choose to exercise your voting rights in writing, if where there is no indication of yourvote for or against a proposal on the Voting Rights Exercise Form, it will be treated as a vote “for” theproposal.

When you exercise your voting rights both by the Voting Rights Exercise Form and via the Internet, thevoting right exercised via the Internet shall be deemed and treated as your valid vote. When you exercise
your voting rights twice or more via the Internet, the voting right exercised last shall be deemed andtreated as your valid vote.

6

[Translation for Reference Purposes Only]

Procedures to Exercise Voting Rights via the Internet
Deadline: Monday, March 27, 2023 at 5:25 p.m. (Japan Time)
A. Via “Smart Ko-Shi”
1. Please use your smartphone to read the QR code on the bottom right corner of the enclosed Voting
Rights Exercise Form, access the “Smart Ko-Shi” website, and enter your votes by following theon-screen instructions (ID and password not required).
2. You can only exercise your voting rights via “Smart Ko-Shi” once.
B. By entering your ID and Password
1. Please access the “Voting Rights Exercise Website” (URL below), log-in with the “Code for the
Exercise of Voting Rights” and the “Password” stated on the enclosed Voting Rights Exercise
Form, and enter your votes by following the on-screen instructions. To ensure security, you willneed to change the password at the initial log-in.
https://soukai.mizuho-tb.co.jp/
2. The Password (including passwords changed by the shareholder) is only valid for this General
Meeting. A new password will be issued for the next General Meeting of Shareholders.
3. The Password is used to authenticate shareholders. There will be no inquiries concerning yourPassword from the Company.
4. After a certain number of failed attempts at entering the Password, a lock will be set and the
Password will become invalid. If a lock is set, please follow the on-screen instructions and carryout the necessary procedures.
C. Caution
1. The deadline for exercising your voting rights is Monday, March 27, 2023 at 5:25 p.m. (Japan
Time), and the entering of votes must be finished by that time. Please exercise your voting rights
early.
2. If you would like to revise your votes exercised through “Smart Ko-Shi,” please do so by following
the procedures in B. above.
3. If you exercise your voting rights both in writing and via the Internet, we will only accept theexercise of your voting rights via the Internet as your effective vote. If you exercise your voting
rights more than once via the Internet, we will only accept the last exercise of your voting rights as
your effective vote.
4. Fees for connecting to the Internet shall be borne by the shareholder.
5. It has been verified that the exercising of voting rights via the Internet can be done via an ordinary
Internet connection device, but it may not be possible depending on the device you are using or thecircumstances.
D. Inquiries
If you have any inquiries, please contact the Stock
Please use “Smart Ko-Shi” whenTransfer Agency Department of Mizuho Trust & Banking
exercising voting rights via a smartphone.
By reading the “QR code for logging into theCo., Ltd., the shareholder registry administrator.
Inquiries regarding how to use “Smart Ko-Shi” and the“Web site for exercising voting rights”

Telephone (available only in Japan): 0120-768-524
Operating Hours: 09:00 a.m. to 09:00 p.m. (excluding the New
Year holidays)

smartphone website for exercising voting
rights” stated on the enclosed Voting Rights
Exercise Form, you do not need to enter the“Code for the Exercise of Voting Rights” andthe “Password.” This can only be used once
for exercising your voting rights.

Note: The “QR code” is a registered trademark of DENSO WAVE
INCORPORATED.
For Institutional Investors: Institutional investors may exercise their voting rights using the electronic voting platform for
institutional investors operated by ICJ, Inc. if they apply for the usage beforehand.

7[Translation for Reference Purposes Only](Reference) Summary of the Financial Results
Financial Highlights
Net sales
Operating income¥2,324.6 billion
Up 86.8% year on year
¥1,246.4 billion
Up 111.0% year on year
Ordinary income¥1,438.2 billion
Up 118.7% year on year

Net income attributable to owners of parent¥438.2 billion
Up 96.5% year on year

Net income per share¥320.69
Up 108.4% year on year

POINT
1. Total assets increased by ¥1,104.1 billion to ¥6,262.3 billion from ¥5,158.1 billion as of December 31, 2021.
2. Liabilities increased by ¥412.1 billion to ¥2,223.9 billion from ¥1,811.7 billion as of December 31, 2021.
3. Net assets increased by ¥691.9 billion to ¥4,038.3 billion from ¥3,346.4 billion as of December 31, 2021.

8

[Translation for Reference Purposes Only](Reference) Summary of the Financial Results

POINT
4. Net cash provided by operating activities increased by ¥305.8 billion to ¥751.2 billion. The main factors werean increase in income before income taxes due to higher sales prices, despite an increase in income taxes paid.
5. Net cash used in investing activities increased by ¥394.8 billion to ¥525.5 billion due mainly to the increases oflong-term loans receivable and payment for purchases of investment securities.
6. Net cash used in financing activities decreased by ¥73.2 billion to ¥241.9 billion due mainly to an increase inproceeds from long-term debt, despite increases in repayment of long-term debt and purchase of treasury stock.
Forecasted Consolidated Operating Results for the Year Ending December 31, 2023
(Billions of yen)

Net sales
Operating income
Ordinary income
Net income
attributable toowners of parent

For the year ended
2022/12(Results)
2,324.6
1,246.4
1,438.2

For the year ending
2023/12(Forecast)
1,885.0892.0
1,005.0

438.2

270.0

ChangePercentage ofchange(439.6)(354.4)(433.2)(18.9)%(28.4)%(30.1)%(168.2)(38.4)%

The above forecasts are based on an average Brent crude oil price assumption of US$75.0 per barrel for the year
ending December 31, 2023, and average exchange rate assumption for the year of ¥125.0 to the U.S. dollar.

9[Translation for Reference Purposes Only]

Reference Documents for the Ordinary General Meeting of Shareholders
Proposals and references
Proposal No. 1: Appropriation of Surplus
It is proposed that surplus be appropriated as indicated below.
Matters Concerning Year-End Dividend
Based on the shareholder return policy outlined in “Long-term Strategy and Medium-term Business Plan (INPEX
Vision @2022),” which was formulated in February 2022, the Company will, in principle, maintain stable dividend
payouts during the period covered by the medium-term business plan from fiscal year 2022 to fiscal year 2024 witha total payout ratio of around 40 percent or greater, and a minimum annual dividend per share of 30 yen. During
this period, the Company will also strive to strengthen shareholder returns through means including share buybacks
based on the Company’s business environment, financial base and management conditions, etc., in accordance withthe growth of the Company’s financial results.
Based on this policy, in view of the full-year consolidated results, etc., it is proposed that the year-end dividend be
as follows.
1)
2)

3)

Type of dividend
Cash
Matters concerning allotment of dividend property and total amountAmount per common share
32 yenAmount per Class A share
12,800 yen
Total amount of dividend
41,820,962,144 yen
Effective date of distribution of surplus
March 29, 2023

Including the already-paid interim dividend, which amounted to 41,600,027,010 yen (30 yen per common share and12,000 yen per Class A share), the annual dividend is 83,420,989,154 yen in total (62 yen per common share and24,800 yen per Class A share).
Note: Although the Company conducted a share split at a ratio of 1:400 of its common share on October 1, 2013, ashare split was not implemented for the Class A share of the Company. Accordingly, the amount of thedividend of the Class A share was determined by multiplying the dividend of the common shares of theCompany by 400, resulting in an amount equivalent to the dividend of the common shares prior to the share
split, as specified in the Company’s Articles of Incorporation.

*No payout ratio is shown for the year ended 2020/12, as a net loss was recorded.

10

[Translation for Reference Purposes Only]
Proposal No. 2: Reduction of Amount of Legal Capital Surplus
1. Reason for the Reduction of Amount of Legal Capital Surplus
To ensure agility of the future capital policy, the amount of legal capital surplus shall be reduced in accordance
pursuant to Article 448, Paragraph 1 of the Companies Act, and transferred to other capital surplus.
2. Details of the Reduction of Amount of Legal Capital Surplus(1) Amount of legal capital surplus to reduce
An amount of ¥951,000,000,000 from ¥1,023,802,446,468 of the legal capital surplus shall be reduced, andthat reduced amount shall be transferred to other capital surplus, and the legal capital surplus after reduction
shall be ¥72,802,446,468.
(2) Effective date of reduction of amount of legal capital surplus
May 31, 2023

11

[Translation for Reference Purposes Only]
Proposal No. 3: Election of Twelve (12) Directors
As the terms of office of all twelve (12) Directors will expire at the close of this Ordinary General Meeting of
Shareholders, the election of twelve (12) Directors is proposed.
The candidates for Directors are listed below. This proposal was determined at a Board of Directors meeting, after
being deliberated by the Nomination and Compensation Advisory Committee, which consists of five members
including three Independent Outside Directors.
There is no special interest between any of the candidates and the Company.
Candidatenumber

1
2

For reappointment(Note 1)

For reappointment(Note 1)

3

For reappointment

4

For reappointment

5

For reappointment

6

For reappointment

7

New candidate

8
9
10
11
12
Note 1:
Note 2:
Note 3:Current position &responsibility

Name

For reappointment
Outside Director
Independent Director
For reappointment
Outside Director
Independent Director
For reappointment
Outside Director
Independent Director
For reappointment
Outside Director
Independent Director
For reappointment
Outside Director
Independent Director

Toshiaki
Kitamura

Representative Director,
Chairman
Representative Director,
Takayuki Ueda Male
President & CEO
Director, Senior Executive Vice
President
Senior Vice President,
Renewable Energy & New
Kenji Kawano Male
Business
Americas Projects Unit andStrategic Projects Office
Head of Overseas Projects
Director, Senior Managing
Executive Officer
Kimihisa Kittaka Male Senior Vice President,
Corporate Strategy & Planning
Legal Affairs
Director, Senior Managing
Executive Officer
Nobuharu Sase Male
Senior Vice President, General
Administration
Director, Managing Executive
Officer
Daisuke Yamada Male
Senior Vice President, Finance &Accounting
Managing Executive Officer
ToshiakiMale Senior Vice President, Hydrogen
Takimoto& CCUS Development

Male

Attendance at Board of
Directors meetings infiscal year 2022
100% (15/15)
100% (15/15)

100% (12/12)(Note 2)

100% (15/15)

100% (15/15)

100% (15/15)–(Note 3)Jun Yanai

Male Director

100% (15/15)

Norinao Iio

Male Director

100% (15/15)

AtsukoNishimuraFemale Director

100% (15/15)

Tomoo
Nishikawa

Male Director

100% (15/15)

HidekaMorimoto

Male Director

100% (12/12)(Note 2)

If this proposal is approved, this candidate will be selected as Representative Director at the Board of
Directors meeting to be held after the close of this Ordinary General Meeting of Shareholders.
Appointed as a Director on March 25, 2023.
The attendance in this fiscal year is not applicable because this is a new candidate for Director.

12[Translation for Reference Purposes Only]

No. 1

Toshiaki Kitamura(Date of birth: November 15, 1948)
Reappointment
Career summary and position

Number of common shares of theCompany held by the candidate:
64,439 shares
Term of office as Director:
12 years and 9 months
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)

April 1972

Joined Ministry of International Trade and Industry(currently Ministry of Economy, Trade and Industry)
July 2002
Director-General, Trade and Economic Cooperation
Bureau, Ministry of Economy, Trade and Industry
July 2003
Director-General, Manufacturing Industries Bureau,
Ministry of Economy, Trade and Industry
June 2004
Director-General, Trade Policy Bureau, Ministry of
Economy, Trade and Industry
July 2006
Vice-Minister for International Affairs, Ministry of
Economy, Trade and Industry
November 2007 Adviser to Tokio Marine & Nichido Fire Insurance Co.,Ltd.
August 2009
Senior Executive Vice President of the Company
June 2010
Representative Director, President & CEO
June 2018
Representative Director, Chairman (present position)

Reason for nominating as candidate for Director
Mr. Toshiaki Kitamura has superior insights and actual achievement in the fieldsof government policy built through his career at the Ministry of Economy, Tradeand Industry. He joined the Company as Senior Executive Vice President in2009, assumed the post of Representative Director, President & CEO in 2010,and has been Representative Director, Chairman since 2018. Thus, he hasabundant operational experience in the Company and he also has insights
regarding management of oil & natural gas development companies and global
business management as well as administrative/operational affairs. For thesereasons, we have nominated him again for reappointment as Director.

13

[Translation for Reference Purposes Only]

No. 2

Takayuki Ueda
(Date of birth: August 30, 1956)
Reappointment
Career summary and position

Number of common shares of theCompany held by the candidate:
30,731 shares
Term of office as Director:
4 years and 9 months
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)

April 1980

Joined Ministry of International Trade and Industry (currently
Ministry of Economy, Trade and Industry)
July 2010
Director-General, Minister’s Secretariat
August 2011
Director-General, Manufacturing Industries Bureau, Ministryof Economy, Trade and Industry
September 2012 Director-General, Trade Policy Bureau, Ministry of Economy,
Trade and Industry
June 2013
Commissioner, Agency for Natural Resources and Energy
July 2015
Vice-Minister for International Affairs, Ministry of Economy,
Trade and Industry
April 2017
Councilor (part-time) of the Company
August 2017
Senior Executive Vice President
June 2018
Representative Director, President & CEO (present position)

Reason for nominating as candidate for Director
Mr. Takayuki Ueda has superior insights and actual achievement in the fields ofgovernment policy, resources and energy, etc. built through his career at the Ministryof Economy, Trade and Industry. He assumed the post of Senior Executive Vice
President of the Company in 2017, and has been Representative Director, President& CEO since 2018. Thus, he has abundant operational experience in the Company
and he also has insights regarding management of oil & natural gas development
companies and global business management as well as administrative/operational
affairs. For these reasons, we have nominated him again for reappointment as
Director.

14

[Translation for Reference Purposes Only]

No. 3

Kenji Kawano(Date of birth: January 8, 1957)
Reappointment
Career summary and position

Number of common shares of theCompany held by the candidate:
35,761 shares

April 1980
March 2006

Term of office as Director:

October 2008

1 yearAttendance at Board of Directors
meetings in fiscal year 2022:
12 out of 12 (100%)

June 2012
March 2020
January 2022
March 2022
January 2023

Joined Teikoku Oil Co., Ltd.
General Manager, Business Development Department,International Project Division & Domestic Offshore
Division.
Executive Officer, Vice President, Asia & Australasia,
General Manager of Planning & Coordination Unit andOffshore Japan Unit of the Company
Managing Executive Officer, Senior Vice President, Asia &Australasia
Senior Managing Executive Officer, Senior Vice President,
Asia Projects
Senior Executive Vice President, Americas Projects Unit
and Strategic Projects Office
Head of Overseas Projects
Director, Senior Executive Vice President, Americas
Projects Unit and Strategic Projects Office
Head of Overseas Projects
Director, Senior Executive Vice President
Senior Vice President, Renewable Energy & New BusinessAmericas Projects Unit and Strategic Projects Office
Head of Overseas Projects (present position)

Reason for nominating as candidate for Director
Mr. Kenji Kawano has been engaged mainly in the matters of oil development
technical departments and overseas project divisions, served as Senior Vice
President of Asia & Australasia, Senior Vice President of Asia Projects since hejoined the Company, and presently he assumes the post of Senior Vice President,
Renewable Energy & New Business, Americas Projects Unit and Strategic
Projects Office, and Head of Overseas Projects. Thus, he has abundant businessexperience in the Company as well as knowledge and experience about thebusiness management and administrative/operational matters of oil & natural
gas development companies. For these reasons, we have nominated him again
for reappointment as Director.

15

[Translation for Reference Purposes Only]

No. 4

Kimihisa Kittaka(Date of birth: September 23, 1957)
Reappointment
Career summary and position

Number of common shares of theCompany held by the candidate:
24,918 shares
Term of office as Director:
6 years and 9 months
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)

April 1981

Joined Ministry of International Trade and Industry(currently Ministry of Economy, Trade and Industry)
October 2007
Director-General for Consumer Policy, Ministry ofInternational Trade and Industry
July 2008
Director-General, Kyushu Bureau of Ministry of Economy,
Trade and Industry
November 2010 Joined the Company
June 2012
Executive Officer, Vice President of Corporate Strategy &Planning Division, General Manager of Corporate Strategy& Planning Unit, and Corporate Communication Unit
June 2016
Director, Managing Executive Officer, Senior Vice
President, Corporate Strategy & Planning
June 2019
Director, Managing Executive Officer, Senior Vice
President, Corporate Strategy & Planning
Legal Affairs
January 2021
Director, Senior Managing Executive Officer, Senior Vice
President, Corporate Strategy & Planning
Legal Affairs (present position)

Reason for nominating as candidate for Director
Mr. Kimihisa Kittaka has superior insights and performance results in the fieldof policies, etc. through his career at the Ministry of Economy, Trade andIndustry. After he joined the Company in 2010, he engaged in the affairs ofcorporate strategy & planning/legal division, has been in the post of General
Manager, Corporate Strategy & Planning Unit, and Corporate Communication
Unit, Corporate Strategy & Planning Division and is currently Senior Vice
President of Corporate Strategy & Planning responsible for sustainability, and in
charge of Legal Affairs. Thus, he has abundant operational experience in the
Company, and he also has a wide range of knowledge and experience regarding
business management and administrative/operational matters of oil & natural gas
development companies and ESG. For these reasons, we have nominated him
again for reappointment as Director.

16[Translation for Reference Purposes Only]

No. 5

Nobuharu Sase
(Date of birth: August 10, 1958)
Reappointment
Career summary and position

Number of common shares of theCompany held by the candidate:
48,560 shares
Term of office as Director:
6 years and 9 months
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)

April 1981
October 2008
June 2010
June 2016
January 2022

Joined Indonesia Petroleum, Ltd. (INPEX Corporation)
Vice President of General Administration Division, General
Manager of Secretarial Unit of the Company
Executive Officer, Vice President of Oil & Gas Business
Division No. 1, General Manager, Oil Marketing Unit
Director, Managing Executive Officer, Senior Vice
President, General Administration
Director, Senior Managing Executive Officer, Senior Vice
President, General Administration (present position)

Reason for nominating as candidate for Director
Mr.
Nobuharu
Sase
has
been
engagedmainlyinadministration/accounting/marketing affairs since he joined the Company and iscurrently Senior Vice President of General Administration after having had
experience in the post of General Manager, Secretarial Unit, and General
Manager, Oil Marketing Unit. Thus, he has abundant business experience in the
Company as well as knowledge and experience concerning marketing andadministrative/operational matters of oil & natural gas development companies.
For these reasons, we have nominated him again for reappointment as Director.

17

[Translation for Reference Purposes Only]

No. 6

Daisuke Yamada(Date of birth: October 10, 1960)
Reappointment
Career summary and position

Number of common shares of theCompany held by the candidate:
15,432 shares

April 1984

Term of office as Director:

April 2013

3 years
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)

April 2011

July 2013
April 2014
April 2018
May 2019
June 2019
March 2020

Joined The Industrial Bank of Japan, Ltd. (currently
Mizuho Bank, Ltd.)
Executive Officer, General Manager of Industry Research
Division, Mizuho Corporate Bank, Ltd.
Managing Executive Officer in charge of Corporate
Banking, Mizuho Corporate Bank, Ltd.
Managing Executive Officer in charge of Branch Banking
Group, Mizuho Bank, Ltd.
Managing Executive Officer, Head of Corporate Banking
Unit (Large Corporations), Mizuho Financial Group, Inc.
Senior Managing Executive Officer in charge of Digital
Innovation, Mizuho Financial Group, Inc.
Councilor of the Company
Managing Executive Officer, Vice President, Finance &Accounting, General Manager, Finance Unit, Finance &Accounting Division
Director, Managing Executive Officer, Senior Vice
President, Finance & Accounting (present position)

Reason for nominating as candidate for Director
Mr. Daisuke Yamada has excellent insight and experience as well as actual
performance results in the field of finance built through his career at financial
institutions. Since joining the Company in 2019, he has been engaged in thematters of finance/accounting departments, and currently assumes the post of
Senior Vice President, Finance & Accounting, having served as General
Manager, Finance Unit, Finance & Accounting Division. He has abundantbusiness experience in the Company as well as knowledge and experience
concerning administrative/operational matters of oil & natural gas development
companies. For these reasons, we have nominated him again for reappointment
as Director.

18

[Translation for Reference Purposes Only]

No. 7

Toshiaki Takimoto(Date of birth: October 20, 1961)
New candidate
Career summary and position

Number of common shares of theCompany held by the candidate:
19,715 shares

April 1987
January 2004
October 2008

Term of office as Director:

June 2013
June 2016–
Attendance at Board of Directors
meetings in fiscal year 2022:–

June 2018
June 2019
January 2023

Joined Teikoku Oil Co., Ltd.
General Manager, Caracas OfficeSenior Coordinator, South America Unit, America &Africa Project Division
General Manager, London Office
General Manager, Global Exploration Unit, New Ventures
Division
Executive Officer, Vice President, The Americas & Africa
Managing Executive Officer, Senior Vice President, New
Ventures & Global Exploration
Managing Executive Officer, Senior Vice President,
Hydrogen & CCUS Development (present position)

Reason for nominating as candidate for Director
Mr. Toshiaki Takimoto has been engaged mainly in the oil development
technical departments and overseas project division operations, served as SeniorVice President of Americas & Africa and Senior Vice President of New Ventures& Global Exploration since he joined the Company, and presently he assumes
the post of Senior Vice President, Hydrogen & CCUS Development. Thus, he
has abundant business experience in the Company as well as knowledge andexperience about the business management and administrative/operational
matters of oil & natural gas development and development of various clean
energy such as hydrogen and CCUS. For these reasons, we have nominated him
to be newly appointed as Director.

19[Translation for Reference Purposes Only]

Jun Yanai
No. 8(Date of birth: July 5, 1950)
Reappointment

Number of common shares of theCompany held by the candidate:0 shares
Term of office as Director:
6 years and 9 months
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)

Candidate for:
Outside Director
Independent Director

Career summary and position
April 1973
April 2004
April 2005
April 2008
April 2011
April 2013
June 2013
April 2014
June 2016
June 2016

Joined Mitsubishi Corporation
Senior Vice President, Senior Assistant to Group CEO, Energy
Business Group, Mitsubishi Corporation
Senior Vice President, Division COO, Petroleum BusinessDiv., Mitsubishi Corporation
Executive Vice President, Group COO, Energy BusinessGroup, Mitsubishi Corporation
Executive Vice President, Group CEO, Energy BusinessGroup, Mitsubishi Corporation
Senior Executive Vice President, Group CEO, Energy BusinessGroup, Mitsubishi Corporation
Member of the Board, Senior Executive Vice President, Group
CEO, Energy Business Group, Mitsubishi Corporation
Member of the Board, Senior Executive Vice President, GroupCEO and CCO, Energy Business Group, Mitsubishi
Corporation
Corporate Advisor, Mitsubishi Corporation (present position)
Outside Director of the Company (present position)

Reason for nominating as candidate for Outside Director, etc.
Mr. Jun Yanai is nominated as a candidate for Outside Director of the Company andhis reelection is requested, as it has been determined that he is able to appropriately
execute his duties as Outside Director due to being expected to provide supervisionof the execution of business from an international perspective and the necessarycomments and suggestions, etc. in the meetings of the Board of Directors, etc.
primarily by utilizing his experience as a corporate executive and abundant
experience and insight in the resource and energy industry.

Special remarks concerning the candidate for Director
1. Registration of Independent Director
Mr. Yanai is a candidate for Outside Director as stipulated in Article 2, Paragraph
3, Item 7, of the Regulations for Enforcement of the Companies Act. The
Company reported Mr. Yanai as an Independent Director as stipulated by Tokyo
Stock Exchange, Inc. If the election of Mr. Yanai is approved as proposed, he isscheduled to continue to be an Independent Director. For the independence
standards for Outside Directors of the Company, please refer to “(Reference)
Independence Standards for Outside Directors and Outside Audit & Supervisory
Board Members,” included at the end of reference documents.
2. Term of office as Outside Director of the Company
Mr. Yanai’s term of office as an Outside Director of the Company will be six
years and nine months at the conclusion of this Ordinary General Meeting of
Shareholders.
3. Outline of the liability limitation agreement
Based on the provisions of Article 427, Paragraph 1 of the Companies Act andthe Company’s Articles of Incorporation, the Company has entered into anagreement with Mr. Yanai to limit his liability for damages to the Company
stipulated in Article 423, Paragraph 1 of the Companies Act. The liability fordamages under the agreement is limited to the minimum liability amountstipulated in Article 425, Paragraph 1 of the Companies Act. If the election of
Mr. Yanai is approved as proposed, the Company intends to continue this contract
with him.

20

[Translation for Reference Purposes Only]

No. 9

Norinao Iio(Date of birth: March 2, 1951)
Reappointment

Candidate for:
Outside Director
Independent Director

Career summary and position
Number of common shares of theCompany held by the candidate:0 shares
Term of office as Director:
5 years and 9 months
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)

June 1973
April 2005
April 2008
October 2008
June 2009
August 2009
April 2010
April 2011
June 2011
June 2017

Joined Mitsui & Co., Ltd.
Managing Officer, Chief Operating Officer, Energy Business
Unit, Mitsui & Co., Ltd.
Executive Managing Officer, Chief Operating Officer, Europe
Middle East and Africa Unit, Mitsui & Co., Ltd.
Senior Executive Managing Officer, Chief Operating Officer,
Europe Middle East and Africa Unit, Mitsui & Co., Ltd.
Representative Director, Senior Executive Managing Officer,
Mitsui & Co., Ltd.
Representative Director, Senior Executive Managing Officer,
Mitsui & Co., Ltd., Chief Compliance Officer
Representative Director, Senior Executive Managing Officer,
Mitsui & Co., Ltd.
Director, Mitsui & Co., Ltd.
Counselor, Mitsui & Co., Ltd. (resigned in June 2013)
Outside Director of the Company (present position)

Reason for nominating as candidate for Outside Director, etc.
Mr. Norinao Iio is nominated as a candidate for Outside Director of the Company
and his reelection is requested, as it has been determined that he is able toappropriately execute his duties as Outside Director due to being expected toprovide supervision of the execution of business from an international perspective
and the necessary comments and suggestions, etc. in the meetings of the Board of
Directors, etc. primarily by utilizing his experience as a corporate executive andabundant experience and insight in the resource and energy industry.

Special remarks concerning the candidate for Director
1. Registration of Independent Director
Mr. Iio is a candidate for Outside Director of the Company as stipulated in
Article 2, Paragraph 3, Item 7, of the Regulations for Enforcement of theCompanies Act. The Company reported Mr. Iio as an Independent Director as
stipulated by Tokyo Stock Exchange, Inc. If the election of Mr. Iio is approved
as proposed, he is scheduled to continue to be an Independent Director. For the
independence standards for Outside Directors of the Company, please refer to“(Reference) Independence Standards for Outside Directors and Outside Audit& Supervisory Board Members,” included at the end of reference documents.
2. Term of office as Outside Director of the Company
Mr. Iio’s term of office as an Outside Director of the Company will be five
years and nine months at the conclusion of this Ordinary General Meeting of
Shareholders.
3. Outline of the liability limitation agreement
Based on the provisions of Article 427, Paragraph 1 of the Companies Act andthe Company’s Articles of Incorporation, the Company has entered into anagreement with Mr. Iio to limit his liability for damages to the Company
stipulated in Article 423, Paragraph 1 of the Companies Act. The liability fordamages under the agreement is limited to the minimum liability amountstipulated in Article 425, Paragraph 1 of the Companies Act. If the election of
Mr. Iio is approved as proposed, the Company intends to continue this contract
with him.

21

[Translation for Reference Purposes Only]

No. 10

Atsuko Nishimura(Date of birth: May 5, 1953)
Reappointment

Candidate for:
Outside Director
Independent Director

Career summary and position
Number of common shares of theCompany held by the candidate:0 shares
Term of office as Director:
5 years and 9 months
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)

April 1979
June 1997

Joined Ministry of Foreign Affairs
Director, First Africa Division, Middle Eastern and African
Affairs Bureau
August 1999
Counselor/Minister, Permanent Mission of Japan to theUnited Nations
June 2001
Minister, Embassy of Japan in Belgium
September 2004 Professor, School of Law, Tohoku University (resigned in
March 2008)
June 2008
Administrative Vice President, Japan Foundation (resigned in
March 2012)
April 2012
Senior Councilor, Japan Oil, Gas and Metals National
Corporation (resigned in March 2014)
April 2014
Ambassador Extraordinary and Plenipotentiary to the Grand
Duchy of Luxembourg
July 2016
Ambassador Extraordinary and Plenipotentiary in charge of
Women, Human Rights and Humanitarian Affairs (resigned in
March 2017)
June 2017
Outside Director of the Company (present position)

Significant concurrently held positions
Outside Director, TAISEI CORPORATION

Reason for nominating as candidate for Outside Director, etc.
Ms. Atsuko Nishimura is nominated as a candidate for Outside Director of theCompany and her reelection is requested, as it has been determined that she is able
to appropriately execute her duties as Outside Director due to being expected toprovide supervision of the execution of business from a diverse and global
perspective and the necessary comments and suggestions, etc. in the meetings ofthe Board of Directors, etc. by utilizing her abundant experience as a diplomat andextensive insight on international conditions, in addition to expert knowledge as auniversity professor.

Special remarks concerning the candidate for Director
1. Registration of Independent Director
Ms. Nishimura is a candidate for Outside Director of the Company as stipulated
in Article 2, Paragraph 3, Item 7, of the Regulations for Enforcement of theCompanies Act. The Company reported Ms. Nishimura as an Independent
Director as stipulated by Tokyo Stock Exchange, Inc. If the election of Ms.
Nishimura is approved as proposed, she is scheduled to continue to be an
Independent Director. For the independence standards for Outside Directors of
the Company, please refer to “(Reference) Independence Standards for Outside
Directors and Outside Audit & Supervisory Board Members,” included at theend of reference documents.
2. Term of office as Outside Director of the Company
Ms. Nishimura’s term of office as an Outside Director of the Company will befive years and nine months at the conclusion of this Ordinary General Meetingof Shareholders.
3. Outline of the liability limitation agreement
Based on the provisions of Article 427, Paragraph 1 of the Companies Act andthe Company’s Articles of Incorporation, the Company has entered into anagreement with Ms. Nishimura to limit her liability for damages to theCompany stipulated in Article 423, Paragraph 1 of the Companies Act. The
liability for damages under the agreement is limited to the minimum liability

22

[Translation for Reference Purposes Only]
amount stipulated in Article 425, Paragraph 1 of the Companies Act. If theelection of Ms. Nishimura is approved as proposed, the Company intends tocontinue this contract with her.

23

[Translation for Reference Purposes Only]

No. 11

Tomoo Nishikawa(Date of birth: December 17, 1948)
Reappointment

Candidate for:
Outside Director
Independent Director

Career summary and position
Number of common shares of theCompany held by the candidate:0 shares
Term of office as Director:
3 years
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)

April 1972

Joined Ministry of Construction (currently Ministry of Land,
Infrastructure, Transport and Tourism) (resigned in March
1975)
April 1977
Attorney at Law admitted to practice in Japan; joinedAnderson Mori & Rabinowitz (currently Anderson Mori &Tomotsune), and later served as Partner (resigned in July
1995)
June 1979
Completed a Master of Laws (LL.M.) at Harvard Law School
August 1995
Partner, Komatsu, Koma & Nishikawa (currently Asahi Law
Offices) (resigned in September 2002)
October 1996
Member of the House of Representatives (for one term in
Kanagawa 3rd district)
October 2002
Managing Partner, Sidley Austin Nishikawa Foreign Law Joint
Enterprise
November 2006 Auditor-Secretary, Tohoku University (resigned in March
2014)
April 2008
Visiting Professor, Tohoku University (resigned in March2010)
January 2020
Partner, Sidley Austin Nishikawa Foreign Law Joint Enterprise(resigned in March 2020)
March 2020
Outside Director of the Company (present position)

Reason for nominating as candidate for Outside Director, etc.
Mr. Tomoo Nishikawa is nominated as a candidate for Outside Director of theCompany and his reelection is requested, as it has been determined that he is able toappropriately execute his duties as Outside Director due to being expected to provide
supervision of the execution of business from a diverse and global perspective andthe necessary comments and suggestions, etc. in the meetings of the Board of
Directors, etc. by utilizing his abundant experience and insight as an international
attorney, in addition to knowledge in a variety of fields such as expert knowledge asa university professor.

Special remarks concerning the candidate for Director
1. Registration of Independent Director
Mr. Nishikawa is a candidate for Outside Director of the Company as stipulated
in Article 2, Paragraph 3, Item 7, of the Regulations for Enforcement of theCompanies Act. The Company reported Mr. Nishikawa as an Independent
Director as stipulated by Tokyo Stock Exchange, Inc. If the election of Mr.
Nishikawa is approved as proposed, he is scheduled to continue to be an
Independent Director. For the independence standards for Outside Directors of
the Company, please refer to “(Reference) Independence Standards for Outside
Directors and Outside Audit & Supervisory Board Members,” included at theend of reference documents.
2. Term of office as Outside Director of the Company
Mr. Nishikawa’s term of office as an Outside Director of the Company will bethree years at the conclusion of this Ordinary General Meeting of Shareholders.
3. Outline of the liability limitation agreement
Based on the provisions of Article 427, Paragraph 1 of the Companies Act andthe Company’s Articles of Incorporation, the Company has entered into anagreement with Mr. Nishikawa to limit his liability for damages to the Company
stipulated in Article 423, Paragraph 1 of the Companies Act. The liability fordamages under the agreement is limited to the minimum liability amountstipulated in Article 425, Paragraph 1 of the Companies Act. If the election of24

[Translation for Reference Purposes Only]
Mr. Nishikawa is approved as proposed, the Company intends to continue thiscontract with him.

25

[Translation for Reference Purposes Only]

No. 12

Hideka Morimoto(Date of birth: January 4, 1957)
Reappointment

Candidate for:
Outside Director
Independent Director

Career summary and position
Number of common shares of theCompany held by the candidate:0 shares
Term of office as Director:
1 yearAttendance at Board of Directors
meetings in fiscal year 2022:
12 out of 12 (100%)

April 1981

Joined Environment Agency (currently Ministry of theEnvironment)
September 1997 Private Secretary, Director General of Environment Agency
February 2002
Private Secretary, Minister of the Environment
July 2008
Director, General Affairs Division, Ministry’s Secretariat
July 2009
Director, Personnel Division, Ministry’s Secretariat
August 2011
Councilor, Cabinet Secretariat and Director, Cabinet
Secretariat Nuclear Safety Regulation Organizational Reform
OfficeSeptember 2012 Deputy Director General, Nuclear Regulation Agency
July 2014
Ministry’s Secretariat, Ministry of the Environment
July 2017
Administrative Vice-Minister, Ministry of the Environment(resigned in July 2019)
April 2020
Professor, Faculty of Law, Waseda University (present
position)
June 2020
Chief Director, Institute for Promoting Sustainable Societies(present position)
March 2022
Outside Director of the Company (present position)

Significant concurrently held positions
Outside Director, Takasago Thermal Engineering Co., Ltd.

Reason for nominating as candidate for Outside Director, etc.
Mr. Hideka Morimoto is nominated as a candidate for Outside Director of theCompany and his reelection is requested, as it has been determined that he is able toappropriately execute his duties as Outside Director due to being expected to provide
supervision of the execution of business from a sustainability (ESG) perspective andthe necessary comments and suggestions, etc. in the meetings of the Board of
Directors, etc. by utilizing his abundant experience and insight on the environment
and energy policy developed through his career in the Ministry of the Environment,in addition to expert knowledge as a university professor.

Special remarks concerning the candidate for Director
1. Registration of Independent Director
Mr. Morimoto is a candidate for Outside Director of the Company as stipulated
in Article 2, Paragraph 3, Item 7, of the Regulations for Enforcement of theCompanies Act. The Company reported Mr. Morimoto as an Independent
Director as stipulated by Tokyo Stock Exchange, Inc. If the election of Mr.
Morimoto is approved as proposed, he is scheduled to continue to be an
Independent Director. For the independence standards for Outside Directors of
the Company, please refer to “(Reference) Independence Standards for Outside
Directors and Outside Audit & Supervisory Board Members,” included at theend of reference documents.
2. Term of office as Outside Director of the Company
Mr. Morimoto’s term of office as an Outside Director of the Company will be
one year at the conclusion of this Ordinary General Meeting of Shareholders.
3. Outline of the liability limitation agreement
Based on the provisions of Article 427, Paragraph 1 of the Companies Act andthe Company’s Articles of Incorporation, the Company has entered into anagreement with Mr. Morimoto to limit his liability for damages to the Company
stipulated in Article 423, Paragraph 1 of the Companies Act. The liability fordamages under the agreement is limited to the minimum liability amountstipulated in Article 425, Paragraph 1 of the Companies Act. If the election of26

[Translation for Reference Purposes Only]
Mr. Morimoto is approved as proposed, the Company intends to continue thiscontract with him.

Special remarks concerning all twelve (12) candidates for Director
1. Summary of the content of the indemnity agreements
The Company will conclude indemnity agreements with each of the Directors in accordance with the provisions ofArticle 430-2, Paragraph 1, of the Companies Act, indemnifying them for expenses and losses under Items 1 and 2of the same Paragraph, respectively, within the limits prescribed by laws and regulations.
Under this agreement, the Company shall require the return by a Director of any indemnification for expenses, etc.
received, if it is ascertained that the Director executed his/her duties with the aim of unfairly benefiting him/herself
or a third party, or of damaging the Company’s interests.
If the election of eleven (11) candidates for reelection is approved as proposed, the Company intends to continue
this contract with them.
In addition, if the election of one (1) new candidate is approved as proposed, the Company intends to conclude thiscontract with him.
2. Outline of the content of the liability insurance contracts for officers, etc.
The Company has entered into a liability insurance contracts for officers, etc. as provided for in Article 430-3,
Paragraph 1 of the Companies Act with an insurance company. The scope of the insured parties is the Directors andAudit & Supervisory Board Members of the Company and its 69 subsidiaries as well as Executive Officers of theCompany. The insurance contract provides compensation for damage arising as a result of the responsibilities
assumed by insured officers in their execution of duties, or any claims made against them with regard to these
responsibilities. The contract contains exemptions, including the case that compensation will not be made fordamage arising as a result of intention or gross negligence.
The full amount of the insurance premiums is borne by the Company.
In addition, the Company intends to renew said insurance contracts with the same details during the term of office.

Notes: 1. In addition to common shares, the Company has issued one Class A share, which is held by the Ministerof Economy, Trade and Industry.
2. Regarding the resolution on “Proposal No. 3: Election of Twelve (12) Directors,” pursuant to Article 15,
Paragraph 1 of the Articles of Incorporation of the Company, in the event at least 20% of the total voting
rights of shareholders relating to common shares of the Company are held by a Single Shareholder ofcommon shares of the Company other than a public entity, or by such Single Shareholder and its Coholder, at the time of the adoption of a resolution by this Ordinary General Meeting of Shareholders, theresolution of a general meeting of Class A stock shareholders will be required in addition to theresolution of this Ordinary General Meeting of Shareholders. Although the Company determined that ageneral meeting of Class A stock shareholders should not be required as of the date this notice wasposted, a resolution by a general meeting of Class A stock shareholders may be required depending onsuch factors as subsequent findings. Further, pursuant to Article 32, Paragraph 4 of the Articles ofIncorporation of the Company, a Class A stock shareholder may file an objection within two weeks fromthe date of the adoption of the resolution by this Ordinary General Meeting of Shareholders, stating thata general meeting of Class A stock shareholders should be held.
3. The Company considers it important for all of its Directors including Outside Directors to engage incorporate management with a high consciousness to adequately perform the duties as Directors of theCompany in coping with the duty not to compete and to avoid conflict-of-interest transactions as well
as not to disclose confidential information as provided for in the Companies Act. For these reasons theCompany has obtained from all the candidates for Directors including candidates for Outside Directors
a letter of commitment to confirm these points.
4. Number of common shares held by each candidate for Director includes numbers of shares entitled to
be provided at each retirement under the Board Incentive Plan Trust.

27

[Translation for Reference Purposes Only]
Proposal No. 4: Election of Five (5) Audit & Supervisory Board Members
As the terms of office of all five (5) Audit & Supervisory Board Members will expire at the close of this Ordinary
General Meeting of Shareholders, the election of five (5) Audit & Supervisory Board Members is proposed.
This proposal has received the approval of the Audit & Supervisory Board.
The candidates for Audit & Supervisory Board Members are listed below. There is no special interest between anyof the candidates and the Company.

Candidatenumber

1

2

3

4

5

Current position

Attendance at Board of
Directors meetings/Audit & Supervisory
Board meetings infiscal year 2022

Executive Officer, Vice
President, Finance & Accounting

–
–

Name

New candidate
New candidate
Outside Audit &Supervisory Board
MemberIndependent Audit &Supervisory Board
MemberNew candidate
Outside Audit &Supervisory Board
MemberIndependent Audit &Supervisory Board
Member
For reappointment
Outside Audit &Supervisory Board
MemberIndependent Audit &Supervisory Board
Member
For reappointment
Outside Audit &Supervisory Board
MemberIndependent Audit &Supervisory Board
MemberAkio Kawamura

Male

Toshiya Tone

Male –––

Kenichi Aso

Male –––

Mitsuru Akiyoshi

Male

Audit & Supervisory Board
Member

100% (15/15)
100% (19/19)

Hiroko Kiba

FemaleAudit & Supervisory Board
Member

100% (15/15)
100% (19/19)

28

[Translation for Reference Purposes Only]

Akio Kawamura
No. 1(Date of birth: February 5, 1964)
New candidate

Number of common shares of theCompany held by the candidate:
11,075 shares

Career summary and position
April 1987
June 2010
June 2018

Term of office as Audit &Supervisory Board Member:–
Attendance at Board of Directors
meetings in fiscal year 2022:

March 2020
April 2021–
Attendance at Audit & Supervisory
Board meetings in fiscal year 2022:–

Joined Indonesia Petroleum, Ltd. (INPEX Corporation)
General Manager, Secretarial Unit, General Administration
Division
General Manager, Accounting Unit 1, Finance & Accounting
Division
Executive Officer, Vice President, Finance & Accounting
General Manager, Accounting Unit 1, Finance & Accounting
Division
Executive Officer, Vice President, Finance & Accounting(present position)

Reason for nominating as candidate for Audit & Supervisory Board Member
Mr. Akio Kawamura has been engaged mainly in the general administration andaccounting department, served as General Manager of Secretarial Unit and General
Manager of Accounting Unit 1 of the Company. He currently assumes the post ofVice President of Finance & Accounting. He has business experience in the
Company
aswell
asknowledge
andexperience
concerning
administrative/finance/accounting matters of oil & natural gas development
companies. For these reasons, we believe he will be able to appropriately perform
his duties and have nominated him to be newly appointed as Audit & Supervisory
Board Member.

Special remarks concerning the candidate for Audit & Supervisory Board
Member
Outline of the liability limitation agreement
If the election of Mr. Kawamura is approved as proposed, based on the provisionsof Article 427, Paragraph 1 of the Companies Act and the Company’s Articles ofIncorporation, the Company intends to enter into an agreement with Mr.
Kawamura to limit his liability for damages to the Company stipulated in Article
423, Paragraph 1 of the Companies Act. The liability for damages under theagreement is limited to the minimum liability amount stipulated in Article 425,
Paragraph 1 of the Companies Act.

29

[Translation for Reference Purposes Only]

Toshiya Tone
No. 2

(Date of birth: October 5, 1961)
New candidate

Number of common shares of theCompany held by the candidate:0 shares
Term of office as Audit &Supervisory Board Member:–
Attendance at Board of Directors
meetings in fiscal year 2022:–
Attendance at Audit & Supervisory
Board meetings in fiscal year 2022:–

Candidate for:
Outside Audit &Supervisory Board Member
Independent Audit &Supervisory Board Member

Career summary and position
April 1984
July 2012

Joined Ministry of Finance
Deputy Commissioner (Planning, Information System
Management, Liquor Tax and Industry), National Tax Agency
June 2013
Regional Commissioner, Sendai Regional Taxation Bureau
July 2014
Deputy Director General, Office for the Promotion ofRegulatory Reform, Cabinet Office
July 2017
Regional Commissioner, Kantoshinetsu Regional Taxation
BureauJuly 2018
Deputy Director-General for Cybersecurity and Information
Technology Management, Ministry of FinanceJuly 2019
Director-General for Policy Planning, Ministry of Land,
Infrastructure, Transport (resigned in July 2020)
November 2020 Executive Advisor, NEC Corporation (present position)

Significant concurrently held positions
Executive Advisor, NEC Corporation
Mr. Toshiya Tone plans to retire as Executive Advisor of NEC Corporation on
March 27, 2023.

Reason for nominating as candidate for Outside Audit & Supervisory Board
MemberMr. Toshiya Tone is newly nominated as a candidate for Outside Audit &Supervisory Board Member and his election is requested, as it has been determinedthat he is able to appropriately execute his duties as Outside Audit & Supervisory
Board Member due to his extensive experience and a broad range of insights in thefields of finance and taxation.

Special remarks concerning the candidate for Audit & Supervisory Board
Member
1. Registration of Independent Audit & Supervisory Board Member
Mr. Tone is a candidate for Outside Audit & Supervisory Board Member of theCompany as stipulated in Article 2, Paragraph 3, Item 8, of the Regulations for
Enforcement of the Companies Act. The Company intends to report Mr. Tone asan Independent Audit & Supervisory Board Member as stipulated by Tokyo
Stock Exchange, Inc., if the election of Mr. Tone is approved as proposed. For
the independence standards for Outside Audit & Supervisory Board Members of
the Company, please refer to “(Reference) Independence Standards for Outside
Directors and Outside Audit & Supervisory Board Members,” included at theend of reference documents.
2. Outline of the liability limitation agreement
If the election of Mr. Tone is approved as proposed, based on the provisions ofArticle 427, Paragraph 1 of the Companies Act and the Company’s Articles ofIncorporation, the Company intends to enter into an agreement with Mr. Tone
to limit his liability for damages to the Company stipulated in Article 423,
Paragraph 1 of the Companies Act. The liability for damages under theagreement is limited to the minimum liability amount stipulated in Article 425,
Paragraph 1 of the Companies Act.

30

[Translation for Reference Purposes Only]

Kenichi Aso
No. 3(Date of birth: May 3, 1967)
New candidate

Number of common shares of theCompany held by the candidate:0 shares
Term of office as Audit &Supervisory Board Member:–

Career summary and position
March 1997
October 2014
June 2016
June 2017
June 2018

Attendance at Board of Directors
meetings in fiscal year 2022:–
Attendance at Audit & Supervisory
Board meetings in fiscal year 2022:

June 2021
January 2022–

Candidate for:
Outside Audit &Supervisory Board Member
Independent Audit &Supervisory Board Member

Joined The Export-Import Bank of Japan (currently Japan Bankfor International Cooperation (JBIC))
Chief Representative of Representative Office in Beijing, JBIC
Director General, Credit Department, Credit Assessment andSystems Group, JBIC
Director General, Oil and Natural Gas Department, Energy andNatural Resources Group, JBIC
Resident Executive Officer, Regional Head for the AsiaPacific, JBICManaging Executive Officer, Global Head of Industry FinanceGroup, Director General of Marine and Aviation Finance
Department, JBICManaging Executive Officer, Global Head of Industry FinanceGroup, JBIC (present position)

Significant concurrently held positions
Managing Executive Officer, Global Head of Industry Finance Group, JBIC
Mr. Kenichi Aso plans to retire JBIC on March 27, 2023.

Reason for nominating as candidate for Outside Audit & Supervisory Board
MemberMr. Kenichi Aso is newly nominated as a candidate for Outside Audit & Supervisory
Board Member and his election is requested, as it has been determined that he is able
to appropriately execute his duties as Outside Audit & Supervisory Board Member
due to his extensive experience and a broad range of insights in the fields ofinternational financing and finance.

Special remarks concerning the candidate for Audit & Supervisory Board
Member
1. Registration of Independent Audit & Supervisory Board Member
Mr. Aso is a candidate for Outside Audit & Supervisory Board Member of theCompany as stipulated in Article 2, Paragraph 3, Item 8, of the Regulations for
Enforcement of the Companies Act. The Company intends to report Mr. Aso as
an Independent Audit & Supervisory Board Member as stipulated by Tokyo
Stock Exchange, Inc., if the election of Mr. Aso is approved as proposed. For the
independence standards for Outside Audit & Supervisory Board Members of theCompany, please refer to “(Reference) Independence Standards for Outside
Directors and Outside Audit & Supervisory Board Members,” included at theend of reference documents.
2. Outline of the liability limitation agreement
If the election of Mr. Aso is approved as proposed, based on the provisions ofArticle 427, Paragraph 1 of the Companies Act and the Company’s Articles ofIncorporation, the Company intends to enter into an agreement with Mr. Aso tolimit his liability for damages to the Company stipulated in Article 423,
Paragraph 1 of the Companies Act. The liability for damages under theagreement is limited to the minimum liability amount stipulated in Article 425,
Paragraph 1 of the Companies Act.

31

[Translation for Reference Purposes Only]

Mitsuru Akiyoshi
No. 4(Date of birth: January 9, 1956)
Reappointment

Number of common shares of theCompany held by the candidate:0 shares
Term of office as Audit &Supervisory Board Member:
3 years and 9 months
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)
Attendance at Audit & Supervisory
Board meetings in fiscal year 2022:
19 out of 19 (100%)

Candidate for:
Outside Audit &Supervisory Board Member
Independent Audit &Supervisory Board Member

Career summary and position
April 1978
April 2007
April 2009
April 2011
April 2012
April 2014
April 2018
June 2018
April 2019
June 2019
April 2022

Joined Marubeni Corporation
Executive Officer, General Manager, Finance Department,
Marubeni Corporation
Managing Executive Officer, Marubeni Corporation
Representative Director, Managing Executive Officer,
Marubeni Corporation
Representative Director, Senior Managing Executive Officer,
Marubeni Corporation
Representative Director, Senior Executive Vice President,
Marubeni Corporation
Director, Senior Consultant, Marubeni Corporation
Senior Consultant, Marubeni Corporation (resigned in March
2019)
President & CEO, Mizuho Marubeni Leasing Corporation
Outside Audit & Supervisory Board Member of the Company(present position)
Senior Adviser, Mizuho Marubeni Leasing Corporation(present position)

Significant concurrently held positions
Outside Director, Concordia Financial Group, Ltd.

Reason for nominating as candidate for Outside Audit & Supervisory Board
MemberMr. Mitsuru Akiyoshi is nominated as a candidate for Outside Audit & Supervisory
Board Member of the Company and his reelection is requested, as it has been
determined that he is able to appropriately execute his duties as Outside Audit &Supervisory Board Member due to his extensive experience and a broad range of
insights in the fields of finance and management.

Special remarks concerning the candidate for Audit & Supervisory Board
Member
1. Registration of Independent Audit & Supervisory Board Member
Mr. Akiyoshi is a candidate for Outside Audit & Supervisory Board Member of
the Company as stipulated in Article 2, Paragraph 3, Item 8, of the Regulations
for Enforcement of the Companies Act. The Company reported Mr. Akiyoshi as
an Independent Audit & Supervisory Board Member as stipulated by Tokyo
Stock Exchange, Inc. If the election of Mr. Akiyoshi is approved as proposed, heis scheduled to continue to be an Independent Audit & Supervisory Board
Member. For the independence standards for Outside Audit & Supervisory Board
Members of the Company, please refer to “(Reference) Independence Standards
for Outside Directors and Outside Audit & Supervisory Board Members,”
included at the end of reference documents.
2. Term of office as Outside Audit & Supervisory Board Member of the Company
Mr. Akiyoshi’s term of office as an Outside Audit & Supervisory Board Memberof the Company will be three years and nine months at the conclusion of thisOrdinary General Meeting of Shareholders.
3. Outline of the liability limitation agreement
Based on the provisions of Article 427, Paragraph 1 of the Companies Act andthe Company’s Articles of Incorporation, the Company has entered into anagreement with Mr. Akiyoshi to limit his liability for damages to the Company

32

[Translation for Reference Purposes Only]
stipulated in Article 423, Paragraph 1 of the Companies Act. The liability fordamages under the agreement is limited to the minimum liability amountstipulated in Article 425, Paragraph 1 of the Companies Act. If the election of
Mr. Akiyoshi is approved as proposed, the Company intends to continue thiscontract with him.

33

[Translation for Reference Purposes Only]

Hiroko Kiba
No. 5

(Date of birth: November 1, 1964)
Reappointment

Number of common shares of theCompany held by the candidate:0 shares
Term of office as Audit &Supervisory Board Member:
3 years and 9 months
Attendance at Board of Directors
meetings in fiscal year 2022:
15 out of 15 (100%)
Attendance at Audit & Supervisory
Board meetings in fiscal year 2022:
19 out of 19 (100%)

Candidate for:
Outside Audit &Supervisory Board Member
Independent Audit &Supervisory Board Member

Career summary and position
April 1987

Joined Tokyo Broadcasting System, Inc. (currently Tokyo
Broadcasting System Holdings, Inc.)
April 2001
Part-time Lecturer, Faculty of Education, Chiba University
January 2007
Member, Council for Regulatory Reform, Prime Minister’s
Office of Japan (resigned in March 2010)
July 2007
Member, Advisory Committee for Natural Resources andEnergy, Ministry of Economy, Trade and Industry (present
position)
February 2008
Member, Meeting on Education Rebuilding, Prime Minister’s
Office of Japan (resigned in November 2009)
March 2009
Member, Council for Transport Policy, Ministry of Land,
Infrastructure, Transport and Tourism (resigned in March 2021)
April 2013
Visiting Professor, Chiba University (present position)
January 2016
Policy Advisor, Japan Coast Guard (present position)
November 2017 Member, Medical Ethics Working Group, Medical Ethics
Council, Ministry of Health, Labor and Welfare (present
position)
February 2019
Member, Central Council for Education, Ministry of Culture,
Sports, Science and Technology (resigned in February 2021)
June 2019
Outside Audit & Supervisory Board Member (present position)
November 2022 Member, Advisory Committee on Corporate Sound Water
Cycle Efforts, Prime Minister’s Office of Japan (present
position)

Significant concurrently held positions
Outside Director, Central Japan Railway Company

Reason for nominating as candidate for Outside Audit & Supervisory Board
MemberMs. Hiroko Kiba is nominated as a candidate for Outside Audit & Supervisory Board
Member of the Company and her reelection is requested, as it has been determinedthat she is able to appropriately execute her duties as Outside Audit & Supervisory
Board Member due to her diverse range of knowledge and experience as a memberof the Advisory Committee for Natural Resources and Energy and the Council forTransport Policy, in addition to her extensive experience and insights as a freelance
newscaster and university instructor.
Note: Ms. Hiroko Kiba’s name on the family register is Hiroko Yoda.

Special remarks concerning the candidate for Audit & Supervisory Board
Member
1. Registration of Independent Audit & Supervisory Board Member
Ms. Kiba is a candidate for Outside Audit & Supervisory Board Member of theCompany as stipulated in Article 2, Paragraph 3, Item 8, of the Regulations for
Enforcement of the Companies Act. The Company reported Ms. Kiba as an
Independent Audit & Supervisory Board Member as stipulated by Tokyo Stock
Exchange, Inc. If the election of Ms. Kiba is approved as proposed, she isscheduled to continue to be an Independent Audit & Supervisory Board Member.
For the independence standards for Outside Audit & Supervisory Board
Members of the Company, please refer to “(Reference) Independence Standards
for Outside Directors and Outside Audit & Supervisory Board Members,”
included at the end of reference documents.
2. Term of office as Outside Audit & Supervisory Board Member of the Company

34

[Translation for Reference Purposes Only]
Ms. Kiba’s term of office as an Outside Audit & Supervisory Board Member of
the Company will be three years and nine months at the conclusion of thisOrdinary General Meeting of Shareholders.
3. Outline of the liability limitation agreement
Based on the provisions of Article 427, Paragraph 1 of the Companies Act andthe Company’s Articles of Incorporation, the Company has entered into anagreement with Ms. Kiba to limit her liability for damages to the Company
stipulated in Article 423, Paragraph 1 of the Companies Act. The liability fordamages under the agreement is limited to the minimum liability amountstipulated in Article 425, Paragraph 1 of the Companies Act. If the election of
Ms. Kiba is approved as proposed, the Company intends to continue this contract
with her.

35

[Translation for Reference Purposes Only]
Special remarks concerning all five (5) candidates for Audit & Supervisory Board Member
1. Summary of the content of the indemnity agreements
The Company will conclude indemnity agreements with each of the Audit & Supervisory Board Members inaccordance with the provisions of Article 430-2, Paragraph 1, of the Companies Act, indemnifying them for
expenses and losses under Items 1 and 2 of the same Paragraph, respectively, within the limits prescribed by laws
and regulations.
Under this agreement, the Company shall require the return by an Audit & Supervisory Board Member of any
indemnification for expenses, etc. received, if it is ascertained that the Audit & Supervisory Board Member
executed his/her duties with the aim of unfairly benefiting him/herself or a third party, or of damaging theCompany’s interests.
If the election of two (2) candidates for reelection is approved as proposed, the Company intends to continue thiscontract with them.
In addition, if the election of three (3) new candidates is approved as proposed, the Company intends to conclude
this contract with them.
2. Outline of the content of the liability insurance contracts for officers, etc.
The Company has entered into a liability insurance contracts for officers, etc. as provided for in Article 430-3,
Paragraph 1 of the Companies Act with an insurance company. The scope of the insured parties is the Directors andAudit & Supervisory Board Members of the Company and its 69 subsidiaries as well as Executive Officers of theCompany. The insurance contract provides compensation for damage arising as a result of the responsibilities
assumed by insured officers in their execution of duties, or any claims made against them with regard to these
responsibilities. The contract contains exemptions, including the case that compensation will not be made fordamage arising as a result of intention or gross negligence.
The full amount of the insurance premiums is borne by the Company.
In addition, the Company intends to renew said insurance contracts with the same details during the term of office.

Notes: 1. In addition to common shares, the Company has issued one Class A share, which is held by the Ministerof Economy, Trade and Industry.
2. Number of common shares held by each candidate for Audit & Supervisory Board Member includes
numbers of shares entitled to be provided at each retirement under the Board Incentive Plan Trust.

36

[Translation for Reference Purposes Only][Reference] Director and Audit & Supervisory Board Member Skill Matrix
The Company recommends candidates for Director and Audit & Supervisory Board Member who have diverse
and abundant experience and insight for executing its “Long-term Strategy and Medium-term Business Plan
(INPEX Vision @2022)” aimed at the realization of a net-zero carbon society in 2050.
Field
Name

Corporate
Finance /Legal / Risk Sustainability Technology/
GlobalEnergymanagement
Accounting management
(ESG)
DX

Toshiaki
Kitamura●●●

Takayuki Ueda

●

●

●

Kenji Kawano●●

Kimihisa
Kittaka●

Director

Nobuharu Sase
Daisuke
Yamada●●ToshiakiTakimoto●

Norinao Iio●●

AtsukoNishimura●

Audit & Supervisory Board
Member

●

●

●
●

Akio
Kawamura●●

Toshiya Tone●●

Kenichi Aso

●

●

●

●

●

●

●

●
●
●

●

●

●

●

●

●
●

●

●

●

HidekaMorimoto

MitsuruAkiyoshi

●

●

●
●

●

●

●
●

HR
development/
Diversity●●

Jun Yanai

Tomoo
Nishikawa●

Sales /
Marketing

●
●

●

●

●
●
●
●

Hiroko Kiba

●
●

●

●

[Reference] Composition of Board of Directors
If Proposals No. 3 and No. 4 are approved as proposed, the composition of Board of Directors will be as follows.
OutsideNumberBoard of Directors
Audit & Supervisory
Board Members
Total

Percentage of
Independent
Directors

12

5 (1)

Independent
Directors
5

5

4 (1)

4

80.0%

17

9 (2)

9

52.9%

(Female)

37

41.7%

[Translation for Reference Purposes Only]
The Company maintains an appropriate governance structure enabling highly effective supervision ofmanagement ensuring the independence of the Board of Directors.

38

[Translation for Reference Purposes Only][Reference] Independence Standards for Outside Directors and Outside Audit & Supervisory Board
Members
The Company shall, based on the independence criteria set forth by the Tokyo Stock Exchange, determine that an
Outside Director or an Outside Audit & Supervisory Board Member is independent from the Company if he or she
falls under none of the following items.
1.
2.
3.
4.

5.
6.

7.
8.

9.
*1

*2

*3

A major shareholder of the Company (who directly or indirectly holds 10% or more of the Company’s voting
rights) or an executive thereof
A person whose major business partner is the Company (*1) or an executive thereof
A major business partner of the Company (*2) or an executive thereof
A legal professional, accountant, or consultant who receives money or other properties of more than ¥10
million per year on average over the past three (3) years from the Company or its subsidiary, excluding
compensation for Directors or Audit & Supervisory Board Members (if the person receiving such properties isan organization such as a legal entity or a partnership, a person who belongs to such organization)
An accounting auditor of the Company or its subsidiary (if such accounting auditor is an accounting firm, aperson who belongs to such accounting firm)
A person who receives donations or subsidies of more than ¥10 million per year on average over the past three(3) years from the Company or its subsidiary (however, if the person receiving the donation or subsidies is anorganization such as a legal entity or a partnership, a director or other officer managing the business of theorganization to which the amount of such donations or subsidies exceeds the greater of ¥10 million per year or
30% of the total expenses per year of such organization, on average over the past three (3) years)
A person who fell under any of items 1 through 6 above in the past three (3) years
A relative within the second degree of kinship of a person who falls under any of (a) through (d) below(excluding persons who are not material (*3))(a) A person who falls under any of items 1 through 7 above(b) An executive of a subsidiary of the Company(c) A non-executive Director or an accounting advisor of a subsidiary of the Company (limited to cases where
said Outside Audit & Supervisory Board Member is to be designated as an Independent Audit &Supervisory Board Member)(d) A person who fell under item (b) or (c) above or an executive of the Company in the most recent three (3)years (including a non-executive Director, if said Outside Audit & Supervisory Board Member is to be
designated as an Independent Audit & Supervisory Board Member)
Other than each of the preceding items, a person who is substantially judged by the Company to possibly cause
a conflict of interest with ordinary shareholders of the Company“A person whose major business partner is the Company” refers to a business partner whose business
relationship with the Company may have an influence on decision-making of business, etc. of said business
partner to the same extent as said business partner’s parent company, subsidiary or affiliate. Specifically, this
could be a so-called subcontractor whose consolidated net sales from transactions with the Company accountfor a considerable part of the said subcontractor’s consolidated net sales, etc.
“A major business partner of the Company” refers to a business partner whose business relationship with theCompany may have an influence on decision-making of business, etc. of the Company to the same extent as
the Company’s parent company, subsidiary or affiliate. Specifically, this could be the counterparty intransactions with the Company whose consolidated net sales from the transactions account for a considerable
part of the Company’s consolidated net sales, or a supplier who provides merchandise and services which areessential to the business activities of the Company.
Specifically, a “material” person is assumed to be an officer, general manager or equivalent of eachcompany/business partner in case of the persons referred to in items 1 through 3, and a certified public
accountant who belongs to each accounting firm or a lawyer who belongs to each law firm (including so-calledassociates) in case of the persons who belong to organizations referred to in items 4 and 5.

39

Corporate Governance[Reference]
INPEX Corporate Governance Framework
Our mission is to contribute to the creation of a brighter
future for society through our efforts to develop,
produce and deliver energy in a sustainable way. Basedon this mission, in order to achieve sustainable growthand increase corporate value over the medium- to longterm, the Company fulfills its social responsibilities incooperation with its shareholders and otherstakeholders, and works to enhance its corporate
governance for the purpose of conducting transparent,
fair, timely, and decisive decision-making.

Outline of corporate governance system (as of December 31, 2022)

The Company has established its “Corporate
Governance Guidelines” for the purpose of ensuringtransparency and fairness in its decision-making of theCompany and realize effective corporate governancethrough the proactive provision of information.

Audit &
Supervisory Board
Members

Form oforganization

Company with Audit & Supervisory Board
Members
Number of Directors under the
16 or less
Articles of Incorporation .............

Director

Number of Directors (including
12 (5)
Outside Directors) .......................
Term of office .............................. 1 year
Number of Audit & Supervisory
Board Members under the Articles 5 or lessof Incorporation...........................
Number of Audit & Supervisory
Board Members (including Outside
5 (4)Audit & Supervisory Board
Members) ....................................
Term of office .............................. 4 years

Number of
Independent
Officers

9 (5 Outside Directors and 4 Outside Audit &Supervisory Board Members)

Other

Issuance of Class A Share to the Minister of
Economy, Trade and Industry

For the details of our “Corporate Governance Guidelines,” please refer to the Company’s website:
https://www.sustainability-report.inpex.co.jp/2022/en/_assets/downloads/e-guidelines.pdf
The Company’s Corporate Governance Structure (pattern diagram)40

[Reference] Evaluation results of effectiveness of Board of Directors in FY 2022
With the aims of regularly verifying that the Board of
Directors is functioning appropriately and identifying
issues to resolve for continuing improvement, theCompany undertakes an evaluation of the effectivenessof the Board of Directors each year, and discloses thesummary of the evaluation results. Based on this policy,
the eighth evaluation was conducted in fiscal year 2022.
The evaluation method and summary of the results are as
follows.
[Evaluation method](1) The status of efforts to address issues last year and the method of conducting the FY2022 effectivenessassessment were discussed at a meeting of Outside Directors and Audit & Supervisory Board Members.
(2) Adopted the self-evaluation method by the Board of Directors itself, which was confirmed to be appropriateby the third-party evaluation organization in FY2020.
Issues for FY2021



Deepen discussion of management strategies, including plans andprogress for each Net Zero business initiative

Further revitalize discussion at Board of Directors meetings

Deeper discussions regarding the desired state of the Board of
Directors

Enhancement of discussions on portfolio management

Evaluation results for FY2022

Evaluation
results

Self-evaluation by each Director and Audit &Supervisory Board MemberComposition, operation, roles and responsibilitiesof the Board of Directors

Operation of the Nomination and Compensation
Advisory Committee

Improvement status of issues raised in theprevious evaluation, etc.

The overall effectiveness of the Board of Directors
was confirmed to be sufficient, as in the previous
fiscal year
[Evaluation points] The following initiatives were evaluated and theircontinuation was requested.
 Implementation of online pre-meeting briefings for non-Executive
Officers prior to Board of Directors meetingsEnhancement of explanation of background information in discussionof new matters

Lectures and opinion exchange meetings for the Board of Directors byoutside experts, etc.

41

New issues

Enhance discussions regarding strategies



Further revitalize discussion at Board of Directors meetings

Deeper discussions regarding the desired state of the Board of
Directors



Ongoing reinforcement of portfolio management

Based on these evaluation results, the Company will continue striving to improve theeffectiveness of the Board of Directors.

42

(Attachment)

Business Report(January 1, 2022 to December 31, 2022)
1. Present State of the Corporate Group
1) Progress and Results of Operations
During the year ended December 31, 2022, the Japanese economy was on a path to recovery from the impactof the novel coronavirus (COVID-19), but from February, the economic outlook became uncertain because ofrising tensions due to the Ukraine conflict. Since then, the economy has shown a moderate recovery and is
expected to further improve as society learns to coexist with COVID-19. Even so, the global economic
downturn poses a risk to Japan’s economy as global monetary tightening continues. Furthermore, the impact ofinflation and supply disruptions on economic activities continues to be a concern.
Of the international crude oil price indices, which significantly influence the financial performance of theGroup, Brent crude (on a near-term closing price basis), considered a benchmark index for crude oil, started
the current fiscal year at US$78.98 per barrel. The crude oil price moved above US$120 in the first half of theyear due to the imposing of economic sanctions against Russia, mainly by the EU, after the Russian invasionof Ukraine in February, and moves by major Western countries to ban imports of Russian energy products.
However, the price declined in the second half of the year, reaching US$85.91 at the end of the current fiscal
year, due to global decline in demand for crude oil caused by concerns over the reemergence of a new type ofcoronavirus infection in China and economic recession mainly in the U.S. and Europe.
The foreign exchange market, another important factor that affects the business of the Group, began to trade at¥115 level against the U.S. dollar, and then the Japanese yen consistently depreciated throughout the year,
reaching ¥151 level against the U.S. dollar at one point. Eventually, towards the end of the year, the yen
appreciated, and TTM closed at ¥132.70 against the U.S. dollar, a depreciation of ¥17.68 from the end of theprevious fiscal year.

Consolidated net sales for the year ended December 31, 2022 increased by ¥1,080.2 billion, or 86.8%, to¥2,324.6 billion from the previous fiscal year due to an increase in sales price of crude oil and natural gas. Net
sales of crude oil increased by ¥873.4 billion, or 96.5%, to ¥1,778.6 billion, and net sales of natural gas increasedby ¥204.5 billion, or 63.8%, to ¥525.1 billion. Sales volume of crude oil increased by 17,998 thousand barrels,or 15.0%, to 138,116 thousand barrels, and sales volume of natural gas decreased by 22,389 million cf, or 4.8%,
to 442,416 million cf. Sales volume of overseas natural gas decreased by 16,777 million cf, or 4.4%, to 360,291
million cf, and sales volume of domestic natural gas decreased by 150 million m3, or 6.4%, to 2,201 million m3(82,125 million cf).
The average sales price of overseas crude oil increased by US$29.28, or 42.8%, to US$97.71 per barrel. The
average sales price of overseas natural gas increased by US$2.21, or 44.6%, to US$7.17 per thousand cf, andthe average sales price of domestic natural gas increased by ¥37.0, or 80.9%, to ¥82.73 per m3. The averageexchange rate of the Japanese yen against the U.S. dollar on consolidated net sales depreciated by ¥21.62, or
19.6%, to ¥131.73 per U.S. dollar.
The increase of ¥1,080.2 billion in net sales was mainly derived from the following factors: regarding net salesof crude oil and natural gas, an increase in sales volume contributing ¥113.6 billion to the increase, an increasein unit sales price contributing ¥616.9 billion to the increase, the depreciation of the Japanese yen against the
U.S. dollar contributing ¥347.3 billion to the increase, and an increase in net sales excluding crude oil and43

natural gas of ¥2.2 billion.
Meanwhile, cost of sales for the year ended December 31, 2022 increased by ¥374.4 billion, or 65.8%, to¥943.4 billion. Exploration expenses increased by ¥22.7 billion, or 353.1% to ¥29.2 billion. Selling, generaland administrative expenses increased by ¥27.2 billion, or 34.8%, to ¥105.6 billion. As a result, operating
income increased by ¥655.7 billion, or 111.0%, to ¥1,246.4 billion.
Other income increased by ¥219.6 billion, or 195.7%, to ¥331.8 billion due to an increase in equity in earnings
of affiliates and others. Other expenses increased by ¥94.7 billion, or 209.3%, to ¥140.0 billion due to posting
modification loss on financial assets and others. As a result, ordinary income increased by ¥780.6 billion, or
118.7%, to ¥1,438.2 billion.
Extraordinary loss was ¥25.7 billion as a result of posting impairment loss for a certain project due to thedownward revision in forecasted production volume and others as well as the increased probability of sale.
Total amount of current income taxes and deferred income taxes increased by ¥541.0 billion, or 126.0%, to¥970.5 billion, and net profit attributable to non-controlling interests was ¥3.6 billion. As a result of the above
effects, net income attributable to owners of parent increased by ¥215.2 billion, or 96.5%, to ¥438.2 billion.
In addition, net cash provided by operating activities was ¥751.2 billion, and ROE was 12.7%.

44

[Translation for Reference Purposes Only]
First large-scale LNG project where a Japanese company acts as the operator
Ichthys LNG ProjectIn Australia, we have been working for the development
and production in the Ichthys Gas-Condensate Field (theIchthys LNG Project), located offshore Western Australia.
This project is the first large-scale LNG project handled bya Japanese company as the operator. After gas production
started at the end of July 2018, shipments of LNG, LPG
and condensate subsequently started in October of thesame year, and production has remained stable.
In this fiscal year, we successfully completed the planned
shutdown maintenance from July to August to improve thehealth and availability of the facilities. In May, a total of
700 cargoes of all products were shipped, including theshipping of a total of 400 LNG cargoes. Going forward,
we will carry out safe and stable production operations andproduct supply throughout the year, maintaining capacity to ship around 10 tankers of LNG cargo per month.
Furthermore, to reduce greenhouse gas emissions, we are studying the possibility of capturing and storing (CCS)
CO2 emitted from the onshore gas liquefaction plant in Darwin, and in August, we acquired the G-7-AP block
located offshore of Darwin, which is a GHG assessment block. We will be working on the evaluation process.
In addition, we have continued geological and geophysical evaluation of the potential in discovered and untested
structures. We are also studying the possibility of expanding development in the future, including the Ichthys
LNG Project.
Overview of Project
Production capacity

Depth of gas reservoir
Offshore production facilities
Subsea pipeline
Onshore gas liquefaction plant

Offshore production
and central processing
facility (CPF)

Around 8.9 mtpa of LNG (productivity),around 1.65 mtpa of LPG (productivity),around 0.1 million barrels per day ofcondensate (peak levels)
Around 4,000 m to 4,500 m
CPF, FPSO, subsea production systems, etc.
42-inch subsea pipeline of around 890 km
Two LNG liquefaction trains, LNG tank, LPG
tank, condensate tank, shipment facility, etc.

Darwin LNG Plant
Office45

Darwin LNG Plant and LNG
vessels

[Translation for Reference Purposes Only]
Initiatives in the Oil and Natural Gas Business
Abu Dhabi Project
Our subsidiary, Japan Oil Development Co., Ltd., joined the Abu Dhabi offshore crude
oil development and production project in the United Arab Emirates in 1973, and 2023
marks the 50th anniversary. As part of the Abu Dhabi project, in addition to the Upper
Zakum and Lower Zakum oil fields, which are among the largest in the world, we
acquired a participating interest in the Abu Dhabi onshore block in April 2015, greatly
contributing to the stable supply of energy to Japan. In 2019, we bid independently on
Onshore Block 4 as an operator, and promoted evaluation work and exploration activities
in hopes of an early transition to development and start of production.
In addition to oil in Abu Dhabi, UAE to contribute to stable, long-term energy supply to
Japan and the rest of the world, we are actively engaged in the development and
Abu Dhabi Onshore Block 4
production of clean energy, such as hydrogen and ammonia. To further strengthen oursocial contribution activities in UAE, we have also established the INPEX JODCOFoundation. We believe that it is an important mission of ours to promote mutual
understanding and friendship between UAE and Japan through education, environment,
and culture.

Norway Project
Since 2022, we have participated in the Norway project, and through INPEX Idemitsu
Norge AS, we own several existing undeveloped oil and gas fields and exploration blocks
in addition to interests in ten producing oil and gas fields including the Snorre project.
As a core asset, this project is expected to supply about 35% of power required for
operations via floating offshore wind power generation facilities, and as part of our plan todevelop the Wisting oil field in the PL537 and PL537B blocks, we are looking into
reducing CO2 emissions of the oil and gas field production plants by using electricity
supplied by onshore hydro power generation. These initiatives are promoting replacementwith assets with low greenhouse gas emissions and low-carbonization of existing
businesses.

Owned blocks

Abadi Project
The Abadi LNG project, in which subsidiary INPEX Masela, Ltd. is acting as an operator,
saw detailed surveys of the planned LNG plant construction site and surrounding area, butwork had to be postponed due to the spread of COVID-19.
For the Abadi LNG project to be competitive during the current energy transition as wework to realize a net zero carbon society, a comprehensive review is currently underway tomake the project cleaner by introducing CCS.
In September 2022, we entered into a memorandum of understanding with PLN,
Indonesia’s state-owned electricity company, regarding implementing a joint study onhydrogen, ammonia, and CCS in addition to the long-term supply of LNG, in an effort tostart production in the early 2030s.

46

Abadi drillship

[Translation for Reference Purposes Only]
Initiatives for Five Net-Zero Businesses
Muara Laboh Geothermal ProjectIn December 2021, we participated in the Muara Laboh geothermal project, and we
acquired additional interests in the project through ENGIE Global Development B.V. on
April 28, 2022. This project is implemented jointly with Sumitomo Corporation and PT
Supreme Energy in the Muara Laboh geothermal block located in West Sumatra Province
in the Republic of Indonesia. The Muara Laboh geothermal power plant operated in thisproject is currently in commercial operation with a rated output of approximately 85 MW.
The plan of this project is to sell geothermally generated power to PLN, Indonesia’s stateowned electricity company, over 30 years from the start of commercial operation in
Muara Laboh Geothermal
December 2019.
Power Plant
In October 2022, subsidiary INPEX GEOTHERMAL, LTD. opened a new office in Jakarta.
Its goals are to actively participate in existing business in Indonesia as well as to further
improve its presence and pursue opportunities to participate in new geothermal business.
Offshore Wind Power Generation Business in the Netherlands
We established INPEX Renewable Energy Europe Limited in November 2021 with the goalof promoting renewable energy business in Europe.
In 2022, we acquired a 50% interest in the Luchterduinen offshore wind farm and a 15%
interest in the Borssele III/IV offshore wind farms operating off the coast of theNetherlands.
The Luchterduinen offshore wind farm has been in commercial operation with an output
scale of 129 MW since September 2015, and the Borssele III/IV offshore wind farms withan output scale of 731.5 MW since January 2021.
We are proactively engaged in energy structure reforms to realize a net-zero carbon society Luchterduinen offshore
wind farmin 2050 by accelerating initiatives for geothermal power generation projects using
technology cultivated in oil and natural gas development, as well as offshore wind farmprojects leveraging our experience in the construction and operation of floating offshore
facilities gained at overseas sites.
Hirai Blue Hydrogen
In October 2022, a final investment decision was made for the well drilling and aboveground facility construction in order to start the “Integrated Demonstration Test of Blue
Hydrogen and Ammonia Production and Usage” in the Hirai area of the HigashiKashiwazaki gas field in Kashiwazaki City, Niigata Prefecture.
In this demonstration test, secondary CO2 generated during the production of hydrogen andammonia is injected into a depleted gas reservoir in the area in which gas production
already ceased (CCUS), and the hydrogen and ammonia produced are blue hydrogen andammonia with low atmospheric CO2 emissions. After starting underground CO2 injection,
we plan to monitor the injection operation and status after injection while taking safety andenvironmental impact into consideration. This test is the first of its kind in Japan toRendering of completed
comprehensively demonstrate the production of blue hydrogen and ammonia using
facility
domestic natural gas, the implementation of CCUS in a depleted domestic gas field, and theuse for power generation, and it is a key project in terms of domestic energy security, as it
produces clean energy from domestic gas.
The results from this demonstration test will be used to construct a blue hydrogenproduction plant in Niigata Prefecture and commercialize it by around 2030, and we willcontinue to study blue hydrogen and ammonia projects and CCS/CCUS projects evenoverseas, using the experience of the demonstration test.

47

[Translation for Reference Purposes Only]Japan
Net sales¥207.0 billion Up 59.2% from the previous fiscal year
Segment operating income(¥13.0 billion) –We provide a stable supply of natural gas through our pipeline network by combining natural gas from the
Minami-Nagaoka Gas Field, one of the largest in Japan, and overseas LNG received at the Naoetsu LNG
Terminal as product gas. In addition, exploratory well drilling has started in the deep Sekihara Gas Field for the
purpose of assessing the Green Tuff formation.
In the hydrogen business, with a view to achieving a net zero carbon society, we have made a final investment
decision on the “Integrated Demonstration Test of Blue Hydrogen and Ammonia Production and Usage” inKashiwazaki City, Niigata Prefecture, and are now constructing the ground facilities. For CCUS, we are preparing
for a demonstration test of enhanced oil recovery (EOR) technology using carbon dioxide in the Minamiaga Oil
Field, as well as conducting surveys of suitable sites for CO2 storage and technology development for thecommercialization of CCS, and selling carbon-neutral gas. Also, we are actively engaged in various renewableenergy projects, including methanation technology development, a floating offshore wind farm project off Goto in
Nagasaki Prefecture, and the Oyasu geothermal project in Yuzawa City, Akita Prefecture.
The segment posted an operating loss for the year ended December 31, 2022 due to the increase in the cost of
sales.

Koshijihara Plant at the Nagaoka Field

48

[Translation for Reference Purposes Only]
Asia/Oceania
Net sales¥510.1 billion Up 43.7% from the previous fiscal year
Segment operating income¥277.5 billion Up 58.1% from the previous fiscal year
The Ichthys LNG Project in Australia, one of the two large LNG projects where the Company acts as an operator,
is running smoothly. This year, the Company acquired a mining area for CO2 storage and is studying thefeasibility of implementing CCS. Similarly, in Australia, we have started a feasibility study for a green hydrogenproduction project with AGL Energy. In addition, preparatory work for the development of the Abadi LNG
Project in Indonesia is underway with the aim of commencing production in the early 2030s. Furthermore, we arecontinuing production and development at the Tangguh LNG Project (Indonesia), the Prelude FLNG Project(Australia), the Bayu-Undan Project (Timor-Leste), and the Con Son Project (Vietnam). For geothermal power
generation in Indonesia, in addition to the Sarulla and Muara Laboh Geothermal Power Projects, the Company
also joined the Rantau Dedap project in the year ended December 31, 2022. In addition, we are in discussions withPTT Exploration and Production Public Company Limited (PTTEP) of Thailand and JGC HOLDINGS for thecommercialization of CCS in Thailand.

Muara Laboh Geothermal Power Plant

49

[Translation for Reference Purposes Only]
Eurasia (Europe/NIS)Net sales¥320.8 billion Up 174.3% from the previous fiscal year
Segment operating income¥172.1 billion Up 457.1% from the previous fiscal year
In Norway, which is making advanced efforts for low-carbonization and decarbonization, we will secure profits
from production assets such as the newly acquired Snorre Oil Field, promote the development of existing
undeveloped oil and gas fields, and pursue exploration opportunities in the surrounding areas. Also, in Norway,
we are promoting initiatives such as the use of power generated from offshore wind and onshore hydroelectric
power stations for operations, and we will promote replacement with assets with low greenhouse gas emissions
and the low-carbonization of existing businesses. In addition, we have joined the Luchterduinen and Borssele
III/IV offshore wind farm projects off the coast of the Netherlands for accelerating our efforts to achieve net zerocarbon.
We are also working to achieve stable production at the Kashagan Oil Field in Kazakhstan and the Azeri-ChiragGunashli (ACG) Oil Fields in Azerbaijan, which are among the largest oil fields in the world.

Luchterduinen Offshore Wind Farm

50

[Translation for Reference Purposes Only]
Middle East and Africa
Net sales¥1,252.9 billion Up 102.7% from the previous fiscal year
Segment operating income¥810.8 billion Up 115.6% from the previous fiscal year
Abu Dhabi is the area where the Company is focused on investing in its human resources and technologies, asevidenced by the Lower Zakum Oil Field project where the Company has been appointed as the asset leader,
contributing significantly to the steady energy supply in Japan. In the onshore Block 4 mining area, where we are
the operator, we continue to conduct evaluation work and exploration for the early commencement of production.
Furthermore, as part an effort to lower the carbonization of our businesses, we have been discussing with the
ADNOC Group the commercialization of LNG supply to ships. However, due to major changes in the LNG
market, the discussions to determine the schedule for the start of supply are still ongoing.
In addition, we are conducting studies for commercial development in Iraq’s exploration block where potential
large-scale oil production is anticipated.
In Africa, the Company sold its shares in a business operating company in Angola during the year ended
December 31, 2022 from the perspective of optimizing the INPEX Group’s asset portfolio, etc.

Lower Zakum Oil Field

51

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Americas
Net sales¥33.7 billion Up 39.1% from the previous fiscal year
Segment operating income¥16.3 billion Up 59.3% from the previous fiscal year
From the perspective of optimizing the Group’s asset portfolio, in September we transferred to our existing
partners all of our interests in the projects of the Lucius Oil Field and Hadrian North Oil Field, located in the
deepwater U.S. Gulf of Mexico. Also, in January 2023, we sold the shale oil project in Texas, the U.S., in which
we were the operator for the development, production, and sale of crude oil and gas, and closed the business.
Going forward, we will work on discovering promising businesses in the Net Zero 5 fields, and improving ourtechnological capabilities.

52

[Translation for Reference Purposes Only]
The following information concerns production and sales by the Group’s main business divisions for the year
ended December 31, 2022.
(1) Production
The following table shows actual production of crude oil, natural gas, etc. by the Group for the year ended December
31, 2022.
Production for the year
Changes from
Category
ended December 31, 2022
the previous fiscal year
Crude oil
142.5 MMbbls (390.3 Mbbls per day)
13.6%
Natural gas442.2 Bcf (1,211.5 MMcf per day)
(3.2%)
Subtotal
227.1 MMboe (622.2 Mboe per day)
6.5%
Iodine559.1t0.5%
Electric power generation
937.9 million kWh
56.3%
Sulfur
61.1 Mtons(35.0%)
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.
4. The production volume of crude oil and natural gas under the production sharing contracts entered intoby the Group corresponds to the net economic take of the Group. Figures calculated by multiplying thegross production volume by the Company’s interest share are 136.1 MMbbls (373.0 Mbbls per day) of
crude oil, 472.9 Bcf (1,295.7 MMcf per day) of natural gas, and in total 226.8 MMboe (621.5 Mboe perday) for the year ended December 31, 2021, and 153.2 MMbbls (419.6 Mbbls per day) of crude oil,452.7 Bcf (1,240.3 MMcf per day) of natural gas, and in total 239.7 MMboe (656.6 Mboe per day) for
the year ended December 31, 2022.
5. “Boe” means barrels of oil equivalent.
6. “Iodine” is refined by other company on consignment.
7. Figures are rounded to the first decimal place.

53

[Translation for Reference Purposes Only](2) Sales
The following table shows sales for the year ended December 31, 2022.
For the year ended December 31, 2022
(January 1, 2022 to
December 31, 2022)
Segment
Category
Net sales(Billions of yen)
Crude oil
5.9
Natural gas
182.0(excluding LPG)
Japan
LPG
0.0
Other
19.0
Subtotal
207.0
Crude oil
212.8
Natural gas
293.8
Asia &(excluding LPG)
Oceania
LPG
3.4
Subtotal
510.1
Crude oil
275.1
Natural gas
Eurasia43.8(Europe & (excluding LPG)
NIS)
Other
1.8
Subtotal
320.8
MiddleEast &
Crude oil
1,252.9
AfricaCrude oil
31.7
Natural gas
1.9
Americas(excluding LPG)
Subtotal
33.7
Crude oil
1,778.6
Natural gas
521.6(excluding LPG)
Total
LPG
3.4
Other
20.8
Total
2,324.6

54

Changes fromthe previous fiscal year
Net sales
37.7%
69.3%
(70.4%)
4.6%
59.2%
48.3%
43.6%
(49.6%)
43.7%
134.0%–
364.6%
174.3%
102.7%
47.1%(26.7%)
39.1%
96.5%
66.3%
(49.7%)
12.1%
86.8%

[Translation for Reference Purposes Only]
2. Investments
The Company’s investments during the year ended December 31, 2022 totaled ¥377.6 billion. They comprise
exploration expenditures of ¥30.4 billion, and investments of ¥347.1 billion including oil and natural gas
development expenditures on production facilities, among others, and other capital expenditures, etc. (including
payments for acquisitions of participating interests and expenditures arising from business combination) on
construction of natural gas infrastructure and other investments.
The above development expenditures include ¥42.1 billion corresponding to the amount of development
expenditures capitalized within “Recoverable accounts under production sharing” under production sharing
contracts and others.
The above development expenditures also include the Company’s portion of investments in major affiliates
accounted for by the equity method, such as Ichthys LNG Pty Ltd.
3. Funding
During the year ended December 31, 2022, the Company carried out funding aimed at development expenditures,etc., while also working on reducing interest-bearing liabilities in line with our medium-term business plan.
Additionally, the Company received financing from Japan Organization for Metals and Energy Security fordevelopment expenditures, exploration expenditures, etc.
4. Assets and Profit/Loss
Category

14th fiscal year
As of December
31, 2019

17th fiscal year
16th fiscal year
(This fiscal year)
As of December
As of December
31, 2021
31, 2022
771.0
1,244.3
2,324.6257.3
657.6
1,438.2

15th fiscal year
As of December
31, 2020

Net sales (Billions of yen)
1,000.0
Ordinary income (Billions of yen)
511.0
Net income (loss) attributable to123.5(111.6)223.0
438.2
owners of parent (Billions of yen)
Net income (loss) per share (Yen)
84.61(76.50)153.87320.69Net assets (Billions of yen)
3,297.1
3,001.3
3,346.4
4,038.3
Total assets (Billions of yen)
4,849.9
4,634.5
5,158.1
6,262.3
Notes: 1. Amounts under ¥0.1 billion are rounded down. Net income (loss) per share figures are rounded off to
two decimal places.
2. In accordance with the change of the fiscal year, the 14th fiscal year comprises the nine months from
April 1, 2019 to December 31, 2019.

55

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5) Management Initiatives
Business Environment
In the early part of 2022, after a gradual recovery from the social and economic slowdown caused by COVID-19,
the international socioeconomic situation became even more unstable and the future outlook even more uncertain
due to the crisis in Ukraine from February, which heightened tensions in the security environment, prompted thestrategic use of resources and energy in international relations, and led to a supply and demand crunch and pricehikes in energy, significant yen depreciation, and higher prices for goods. Furthermore, the outlook for global
economic recovery and growth is currently difficult to predict due to the maintaining of the zero COVID policy inChina, inflation control and interest rate hikes in the U.S. and other major countries, and other factors. However,
the trend of continually increasing energy demand is expected to remain unchanged over the medium to long term
due to growth of the global population and economic growth centered on emerging economies. With the recovery
and growth in the global economy, demand for oil and natural gas accounting for the majority of this energy is also
expected to increase, and demand is predicted to remain fundamentally steady, particularly in Asia, in the medium
to long term. Furthermore, we regard oil and natural gas as energy sources essential for people’s lives and economic
activity in terms of contributing to fuel supply not only under normal circumstances but also in emergencies.
Japan’s priorities remain the securing of stable energy supplies and, to this end, improving the independent
development ratio of oil and natural gas. In the Sixth Strategic Energy Plan decided in 2021, the Japanese
government raised the target for the independent development ratio (the actual level in fiscal year 2021 wasapproximately 40%) to 50% or more in 2030 and 60% or more in 2040 based on the view that the development,
production and transportation of oil and natural gas will continue to have a very important position in energy security.
Meanwhile, since the holding of the 26th session of the Conference of the Parties to the United Nations Framework
Convention on Climate Change (COP26) in 2021, measures have been implemented for limiting the averagetemperature increase since the industrial revolution to less than 2°C for responding to climate change, andstrengthening initiatives aimed at the realization of the long-term goal of making efforts to limit this increase to
1.5°C. Major regions and countries such as the European Union, the United Kingdom and Japan have also declared“net zero” goals, aiming to effectively reduce greenhouse gas emissions to zero by 2050. Governments aredeveloping policies to simultaneously promote economic recovery from the impact of COVID-19, energy security
and climate change response, and policies for a more energy-efficient, cleaner social structure. With the progress of
discussions aimed at achieving a net zero carbon society, the urgency of a response to carbon neutrality will grow.
The Japanese government has also declared that Japan will become carbon neutral by 2050, has set targets to reducegreenhouse gases, and intends to significantly accelerate initiatives with a view to carbon neutrality such as cleaner
upstream oil and natural gas operations, including hydrogen, ammonia and CCUS, and the promotion of theintroduction of renewable energy.
Management Policies
The Company announced its “Long-term Strategy and Medium-term Business Plan (INPEX Vision @2022)”(hereinafter “INPEX Vision @2022”) in February of last year. INPEX Vision @2022 indicates the Company’s
long-term strategy for 2030 and 2050 based on the changes in the management environment, and also establishes athree-year Medium-term Business Plan from 2022 to 2024 indicating specific initiatives and targets for theimmediate future.
INPEX considers the various shifts towards a net zero carbon society seen in Japan and around the world as newchallenges as well as opportunities to further expand its business. Based on INPEX Vision @2022, the Company
will proactively engage in energy structure reforms towards the realization of a net zero carbon society by 2050
while responding to the energy demands of Japan and other countries around the world under the management
policies shown below.
1.

Oil and Natural Gas business

The Company will continue to position the area of oil and natural gas as a core business with the three basic
strategies of selection and concentration on core areas, the shift to natural gas and making business more resilientand cleaner, and will work to fulfill its two social responsibilities of providing a stable supply of energy andresponding to climate change by integrally implementing these. In the past, the Company had selected core areas
for oil and natural gas, but has re-established core areas for oil and natural gas along with five net-zero fields using
the Company’s assets, networks and technological capabilities in each region as a base to seek synergies between
the two.
56

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Firstly, resources such as funding and personnel will be concentrated in the five newly selected core areas ofAustralia, Abu Dhabi, Southeast Asia, Japan and Europe with the aim of improving operational efficiency andproducing synergies. The Company will consider all options including the sale of non-core assets to build a wellbalanced portfolio.
Secondly, it is the Company’s view that natural gas will continue to have a high level of importance even during
the energy transition, and aims to increase the percentage of gas in its portfolio. For this reason, the investment ratio
into natural gas will be raised from the current level of around 50% to around 70% in the future, expanding in scale
mainly in Asia and Oceania. In addition, consideration will also be given to the shift and expansion of businesstoward future hydrogen and ammonia projects. Oil field development will be carefully selected with emphasis on
early production, early cost recovery and low CO2 emissions.
Thirdly, with regard to making the business more resilient, the Company aims to have a competitive project portfolio
capable of securing earnings even during reduced demand and in an environment with low oil prices, thoroughly
reducing costs and also promoting the improvement of productivity through the utilization of digital technology,
etc. Furthermore, with regard to making the business cleaner, the Company will proceed to thoroughly reducecarbon emissions from projects through initiatives such as the introduction of CCS and CCUS, realization of zeroflares, utilization of electrical power from renewables and utilization of forest credits.
Core business areas
Australia

Abu Dhabi

Southeast Asia

Japan

Current and future initiatives
At our Ichthys Project, where we act as the operator, we have achieved continuing
production at roughly the planned level earlier than originally anticipated. The
production process will be improved to create a system enabling the continuation of
stable production while raising annual LNG production capacity from the current levelof 8.9 million tons to 9.3 million tons by 2024. Furthermore, to maintain long-term
production volume, we will perform additional development through exploration ofsurrounding blocks and entry into discovered assets, and accelerate connection toexisting Ichthys production facilities. Based on the progress made there, we willconsider further expansion of production capacity from around 2030 in the long term.
Based on the overall plan to increase crude oil production capacity to 5 million barrels
per day in 2030, the Group aims to quickly realize the enhancement of production
capacity of oil fields in which it participates in Abu Dhabi. In the Onshore Block 4
project for new exploration, we are proceeding with the assessment of several oil andgas reservoirs discovered in the first exploratory well drilled in 2021, and will work
toward early production. In addition, we aim to further reduce production costs alongwith the plan to increase production, and will promote the introduction of digitaltransformation and proceed to strengthen CO2EOR capacity along with ADNOC to
reduce greenhouse gas emission intensity.
We are continuing negotiations with the Indonesian government and concerned parties
for the plan of development re-revision incorporating changes centered on making the
project more economically resilient and cleaner in order to bring the project to fruitionin an optimal format based on changes in the business environment, and aim to obtainapproval in 2023. With this, we are aiming for FID in the late 2020s and thecommencement of production at the start of the 2030s. Furthermore, in order to obtain
additional natural gas resources for the purpose of promoting the energy transition in
Asia, we will conduct exploration and M&A in areas such as Vietnam and Malaysia.
In fiscal year 2022, we will conduct natural gas exploration in Minami-Sekihara, andare aiming for the early development of natural gas resources based on the results. With
regard to gas supply infrastructure, we will extend the Shin Tokyo Line with the aim ofmaking the supply system using approximately 1,500 km of pipeline more resilient.
Furthermore, we will consider the expansion of facilities at the Naoetsu LNG Terminal
to respond to increasing demand caused by the promotion of the gas shift and also keep
pace with the promotion of hydrogen and ammonia projects.

57

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Europe2.

Using Norwegian assets including production blocks such as the newly acquired Snorre
Oil Field as a platform, we aim to expand business and further increase value by
developing existing undeveloped oil and gas fields in the blocks held, and also seeking
surrounding exploration opportunities. Norway is a pioneering region in initiatives
aimed at lowering carbon emissions in oil and natural gas projects, and we will reduce
the use of fuel such as natural gas required for operations and promote lower carbon
emissions from operations by using renewable energy in plants, such as proceeding to
the construction of floating offshore wind power generation facilities in the Snorre Oil
Field.

Five Net-Zero businesses

We have established climate change goals, and will strongly promote the following five businesses to achieve a net
zero carbon society.
Climate Change Response Goals and Progress
INPEX will set its climate change response goals, aiming to achieve our own net zero carbon emissions by 2050,
to contribute to the realization of the Paris Agreement objectives in relation to climate change. Specifically, ourgoals include “net zero in absolute emissions (Scope 1+2) by 2050,” “30% or more reduction of net carbon
intensity (Scope 1+2, compared to 2019) by 2030,” and “reduction in Scope 3 emissions.”*1 We are engaged ininitiatives such as CO2 capture, utilization and storage (CCUS) and CO2 capture through forest conservation, andstrongly promote the reduction in CO2 emissions across our oil and natural gas operations, in order to achievethese goals.
We have established the business target of further reducing emission intensity by 4.1 kg/boe or more in the“Medium-Term Business Plan 2022-2024.” Emission intensity in 2022 decreased by 30% compared to 2019(provisional figure that could be confirmed as of December 2022), and the Company is continuing various
measures to reduce emission intensity.
*1

The definitions of Scopes 1 to 3 are shown below:
Scope 1: Direct emissions from sources owned or operated by the reporting company
Scope 2: Indirect emissions from electrical power, steam, heating or cooling purchased and consumed by the reporting
company
Scope 3: All other indirect emissions along the reporting company’s value chain

58

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Five Net-Zero Businesses(1) Develop a hydrogen businessWe will set goals to implement three or more projects by around 2030, and achieve annual production andsupply of 100 thousand tons or more, and implement initiatives aimed at the achievement of these goals.

••

Within Japan, we will promote the concept of an integrated hydrogen and ammonia production anduse test project in Kashiwazaki City, Niigata Prefecture with the aim of commencing operation in
2024, and aim to achieve commercial-scale blue hydrogen production in Niigata Prefecture by around2030 based on the results of the test project.

•

Overseas, we will continue to promote the clean ammonia production project in Abu Dhabi, and aim
to achieve large-scale clean ammonia supply from the late 2020s.

•

In Australia, Abu Dhabi, Indonesia and other areas, we will promote the expansion of businessthrough business viability reviews and collaboration with other companies, and aim to launch andparticipate in additional clean hydrogen projects.

(2) CO2 reduction in oil and natural gas (promotion of CCUS)
We have set the goal of compressing 2.5 million tons of CO2 per year in around 2030, and aim to becomea leading company in CCUS by promoting technological development and operations aimed at therealization of this goal.

••

Within Japan, we will commence a CO2-EOR demonstration test in the Minamiaga Oil Field by 2023
and aim to establish technology for improving the EOR efficiency currently under development, andwill also promote the expansion of CCUS technology and the implementation of EOR technology inoverseas oil fields.

•

Overseas, we will implement CCS in the Ichthys LNG Project in Australia by the late 2020s, and aim
to commence CO2 compression totaling 2 million tons per year or more as the first stage, in addition
to playing a leading role in the CCS hub project in the Darwin region. Furthermore, we aim to workwith ADNOC to strengthen the CCUS capacity of 800 thousand tons per year in Abu Dhabi.

(3) Enhance and emphasize renewable energy initiatives
With the goal of securing 1-2 GW scale capacity centered on offshore wind power and geothermal power
generation business, we aim to become a major player by accelerating expansion of business as a platformusing assets acquired through M&A, etc.

••

In the wind power business, we have agreed to acquire shares in Luchterduinen and Borssele III/IV
offshore wind power farms in the Netherlands in December 2021. Furthermore, we were selected as
the operator of Japan’s first floating offshore wind power farm off Goto in Nagasaki Prefecture inJune 2021. We will use participation in these projects as opportunities to accumulate knowledge on
the wind power business and become the main player in floating offshore wind power in Japan andoverseas.
In the geothermal business, we will proceed with development in Indonesia, and proceed to consider
additional development in the Muara Laboh Geothermal Power Project, which we joined in December
2021. Also, in Japan, we decided to transition to the construction stage at Oyasu. In addition, we will
actively conduct various business reviews not only of power generation projects, but also developmentof next-generation geothermal development technology.

•(4) Promote carbon recycling and cultivate new business opportunities•

We will promote the social implementation of methanation*2 and aim to supply around 60 thousand tonsof synthetic methane per year by 2030 using our pipelines, and also seek further development.
•

Until last year, we have conducted demonstration tests of methanation by installing a small-scale
methanation facility in the Company’s Koshijihara Plant in Nagaoka City, Niigata Prefecture. Goingforward, we will install a larger scale demonstration facility, and intend to supply users via the
Company’s gas pipelines by 2025. Furthermore, as an extension of this, we plan to build acommercial-scale methanation facility in Australia in around 2030, and deliver synthetic methane todomestic users through the Company’s gas pipelines using the Company’s LNG value chain.
59

[Translation for Reference Purposes Only]•

With regard to artificial photosynthesis technology*3, as a member of the Japan TechnologicalResearch Association of Artificial Photosynthetic Chemical Process (ARPChem), we have handled thetechnical development of direct decomposition technology for water using sunlight called solarhydrogen, installed a test plant at the test site in Darwin, Australia, and conducted test operation for
approximately 12 months in 2021. This is the world’s first solar hydrogen generation plant in a sunbelt
region with much sunlight, and we aim to practically implement the technology by increasing
efficiency and prolonging its lifetime.

•

We are also engaged in new areas of business by focusing on areas such as methane pyrolysis anddrone technology.

*2

Hydrogen is produced by electrolysis of water using electrical power from renewables. Together with highlyconcentrated CO2 emitted from sources such as coal-fired power plants, and CO2 that is a byproduct of our natural
gas production, this hydrogen is converted into methane through CO2-methanation (with a methanation catalyst).

*3

A technology to split hydrogen from oxygen in water using a photocatalyst installed on the surface of an artificial
photosynthetic panel; the hydrogen is then used for fuel and raw materials, etc.

(5) Promote forest conservation•

We will strengthen and expand efforts ranging from support for projects to participation in projects withthe objective of absorbing CO2 through forest conservation.
•

In addition to commencing support for a project in Rimba Raya in 2021, we are proceeding with thesale of carbon-neutral LNG (LNG that effectively has zero CO2 emissions from production to
consumption) to customers, etc.

•

We consider stably securing forest credits in the long term to be important, and in addition to securingcredits by supporting excellent REDD+ projects like Rimba Raya, we aim to participate in projects
themselves as a partner.

Through the above initiatives, the Company will contribute to the development of the economy and society bypromoting stable energy supply and the realization of a net-zero carbon society.

60[Translation for Reference Purposes Only][Reference]■ Overview of Medium-Term Business Plan 2022-2024•

In FY2022, stable operations at Ichthys continued while initiatives were carried out to strengthen
production capacity at Abu Dhabi, and assets were sold in oil and natural gas in order to optimize theasset portfolio.

•

Moreover, the Company is steadily working to achieve its management targets by carrying out measures
to promote energy transition, which includes, along with acquisitions of a geothermal business inIndonesia and an offshore wind farm business in Europe, bidding for a CCS Block in Australia.

•

The Company has also provided shareholder returns in response to the expectations and ongoing supportof shareholders, significantly raising the level of dividends in line with our policy on shareholder returns,
and also implementing share buybacks, continuing on from 2021.

•

In FY2023, the Company will carry out initiatives to achieve INPEX Vision @2022 with the aim offurther strengthening the business structure with a focus on oil and natural gas along with building thevalue chain for the five net-zero businesses.

Business targets

Financial targets

Assumption

For the year ended
2022/12(Results)

For the year ending
2023/12(Forecast)

For the year ending 2024/12(Targets)

Brent crude oil
price(US$/ barrel)

9975

US$60/ barrel

US$70/ barrel

Exchange rate
(JPY/)

131.6

125¥110/ US$¥110/ US$¥438.2 bn¥270.0 bn¥170.0 bn¥240.0 bn¥1,061.6 bn

Around ¥800.0 bn¥600.0 bn¥700.0 bn

12.7%
45.8%

Around 7%
Around 39%

622K BOED

639K BOED

US$5.8/BOE

US$5.5/BOE

Reduction towards US$5 perbarrel or below

28kg/boe(provisional
figure)Two-thirds or more
reduction of the target
in the medium-term
management plan

Reduction of 10% (4.1kg/boe)or moreover a 3-year period towards
2030 target *2

Zero major accidents

Zero major accidents *3

Net income
attributable toowners of parent
Operating cash
flow before
exploration *1
ROE
Net D/E ratio *1
Net production(BOED)
Production cost
per BOE(excluding
royalties)
Net carbon
intensity
SafetyZero major
accidents

61

Around 6.0%
Around 8.0%
50% or less
50% or lessLevel exceeding 700 thousand
BOED[Translation for Reference Purposes Only]

Shareholder returns

 Aim for total return ratio of
40% or higher
Annual dividend¥62¥64  Implement share buybacks
per share
giving thought to theCompany’s businessenvironment, financial baseand management conditions,etc.
Even in cases of short-term
Total payout
46.4%
40% or moredeterioration of the businessratio
environment, a minimum
annual dividend per share of 30
yen will be paid.
*1 Includes Ichthys downstream Incorporated Joint Venture and differs from financial accounting basis*2 Reduction of 2019 net carbon intensity (41.1kg/boe) by over 30%*3 Major accidents: Accidents including fatality, serious leak and serious injury at operator business.

62

[Translation for Reference Purposes Only][Reference]■ Long term Strategy and Medium-Term Business Plan (INPEX Vision @2022)*Disclosed on February 9, 2022
- Long term Strategy Vision for around 2030
We will secure an operating cash flow before exploration of approximately 5-6 trillion JPY in the nine
years from 2022 to 2030, and allocate 3.8-4.4 trillion JPY of this stable cashflow to growth investment, ofwhich 700 billion JPY to 1 trillion JPY, or about 20% of the total, to be invested in the five net zero fields.

63

[Translation for Reference Purposes Only][Reference]■ Long term Strategy and Medium-Term Business Plan (INPEX Vision @2022)*Disclosed on February 9, 2022
- Long term Strategy Vision for around 2030
Regarding the 5 net zero businesses, except for the renewable power business, because we are in the earlystages of commercialization, steadily promote research and verification during the period of the mediumterm business plan, and promote commercialization by around 2030. In the renewable power business,
aim to achieve a power generation capacity of 1 to 2 GW by around 2030.

64

[Translation for Reference Purposes Only][Reference]■ Long term Strategy and Medium-Term Business Plan (INPEX Vision @2022)*Disclosed on February 9, 2022
- Medium term Business Plan 2022-2024 The management targets, business targets, and shareholder returns set forth in the medium-term businessplan are as follows.

Management targets
Index

Targets for FY 20241
USD 60 basis

USD 70 basis

Net income
attributable to owners of parent

170 billion JPY

240 billion JPY

Operating CF before
exploration2

600 billion JPY

700 billion JPY

ROEAround 6.0%

Around 8.0%
50% or less

Net debt/equity ratio2

1: Exchange rate assumption: 110 JPY/USD
2: Includes Ichthys downstream Incorporated Joint Venture and differs from financial accounting basis

65[Translation for Reference Purposes Only]

Business targets
Index

Targets for FY 2024

Net production volume

Level exceeding 700 thousand BOED

Production cost per barrel

Reduction towards 5 USD per barrel or below

Net carbon intensity3

Reduction of 10% (4.1kg/boe4) or more
over a 3-year period towards 2030 target

SafetyZero major accidents

3: Net carbon intensity = (equity share emissions volume (Scope 1+2) - offset) / net production volume
4: Reduction of 2019 net carbon intensity (41.1kg/boe) by over 30%

66

[Translation for Reference Purposes Only]
6. Important Subsidiaries, etc.
(1) Important Subsidiaries
As of December 31, 2022, the Company had 72 subsidiaries (as defined under Article 2, Item 3, of the Companies
Act). Compared with the end of the previous fiscal year, one (1) subsidiary was established and eight (8)subsidiaries were added by acquisition, and one (1) subsidiary was eliminated due to the completion ofliquidation. The operations of the Company’s subsidiaries are generally administered by the Company throughconcurrent posts and the secondment of directors and employees. Details of important subsidiaries are shown in
the table below.
Company name(Area/Project name)
INPEX GEOTHERMAL, LTD.
(Indonesia/Muara Laboh Geothermal
Power and others)
INPEX Masela, Ltd.
(Indonesia/Abadi LNG)
INPEX Browse, Ltd.
(Australia/Ichthys LNG)

INPEX Holdings Australia Pty Ltd(Australia/Ichthys LNG)

INPEX Ichthys Pty Ltd(Australia/Ichthys LNG)
INPEX Oil & Gas Australia Pty Ltd(Australia/Prelude LNG and others)
INPEX Sahul, Ltd.
(Australia/Bayu-Undan GasCondensate Field)
INPEX Renewable Energy Europe
Limited(Netherlands/Luchterduinen offshore
wind farm and others)
INPEX North Caspian Sea, Ltd.
(Kazakhstan/Kashagan Oil Field andothers)INPEX Southwest Caspian Sea, Ltd.
(Azerbaijan/ACG Oil Fields)

Issued capital(Millions of yen,unless otherwise
stated)Ownership (%)

4,800

100

67,03651.93

428,940100

US$9,683,023
thousand100

US$804,456
thousand100

US$1,011,000
thousand

100

4,600

100

GBP296
million

100

Wind power generation
business

113,897

51

Exploration, development,
production, and sale of oil

53,59451

Exploration, development,
production, and sale of oil

67

Main business
Geothermal power generation
business
Exploration and developmentof oil and natural gas
Financing, etc. for the
exploration and developmentof oil and natural gas anddevelopment work at theIchthys LNG Project, etc.
Financing, etc. for the
exploration, development,
production, and sale of oil andnatural gas, and construction
and operation, etc. of LNG
plantsExploration, development,
production, and sale of oil andnatural gas
Exploration, development,
production, and sale of oil andnatural gas
Exploration, development,
production, and sale of oil andnatural gas

[Translation for Reference Purposes Only]
Company name(Area/Project name)

Issued capital(Millions of yen,unless otherwise
stated)Ownership (%)

Main businessJapan Oil Development Co., Ltd.
(Abu Dhabi/Abu Dhabi Offshore Oil
Fields)JODCO Lower Zakum Limited(Abu Dhabi/Abu Dhabi Offshore Oil
Fields)JODCO Onshore Limited(Abu Dhabi/Abu Dhabi Onshore Oil
Fields)

5,532

100

Exploration, development,
production, and sale of oil

US$600,000
thousand100

Exploration, development,
production, and sale of oil

US$111
thousand

65.76

Exploration, development,
production, and sale of oil

INPEX FINANCIAL SERVICESSINGAPORE PTE. LTD.
(Singapore)

US$2,826,000
thousand100

The Group’s intercompany
finance operations andsupport for financial
administration of projects

US$101,738
thousand

100

Sale and purchase of oil andnatural gas, etc.

INPEX ENERGY TRADINGSINGAPORE PTE. LTD.
(Singapore)

57 other companies(2) Items related to a specified wholly-owned subsidiary
Company name

Address

INPEX Browse, Ltd.

5-3-1, Akasaka, Minato-ku, Tokyo

68

Total book value(Millions of yen)

INPEX’s total
assets(Millions of yen)

834,890

3,035,629

[Translation for Reference Purposes Only]
7. Primary Business Surveys, exploration, development and production of oil, natural gas, and other mineral resources Surveys, development and production of geothermal, wind, solar and other energy resources Refinery, processing, storage, trading, consignment sale and transportation of resources defined above as
well as their by-products
 Supply of electricity, heat, etc.
8. Principal Business Sites
Name
Location
Head Office
5-3-1, Akasaka, Minato-ku, Tokyo
Technical Research Center
Setagaya-ku, Tokyo
Naoetsu LNG Terminal
Joetsu City, Niigata Prefecture
East Japan Regional OfficeNiigata City, Niigata Prefecture
East Japan Regional Office, Akita Field Office
Akita City, Akita Prefecture
East Japan Regional Office, Chiba Field Office
Sammu City, Chiba Prefecture
East Japan Regional Office, Minamiaga Field OfficeAgano City, Niigata Prefecture
East Japan Regional Office, Nagaoka Field Office
Nagaoka City, Niigata Prefecture
Perth Office
Australia
Darwin Office
Australia
Jakarta Office
Indonesia
Singapore Office
Singapore
London Office
The United Kingdom
Oslo Office
NorwayAstana Office
Kazakhstan
Abu Dhabi Office
United Arab Emirates
Houston Office
The United States of America
Note: The above includes operational bases of the Company’s subsidiaries.
9. Employees
Number of employees Year-on-year change
3,364 [395]+175
Notes: 1. The number of employees shown above excludes the Group (the Company and its consolidated
subsidiaries) employees seconded to other companies outside the Group, but includes employees
seconded from other companies to the Group.
2. The figure in square brackets is the average number of temporary employees during the year ended
December 31, 2022 and is indicated separately. It includes local contract employees working undercontracts on overseas development projects and domestic contract employees, non-regular contract
staff and temporary staff, etc. who are employed in operations relating to oil and natural gas in Japan.
10. Primary Lenders
LenderJapan Bank for International Cooperation
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited

Outstanding borrowings (Billions of yen)
267.7
252.1
216.2
210.9
166.9
66.3

69

[Translation for Reference Purposes Only]
II. Items Related to Shares
1.

Total Number of Shares Authorized to Be Issued(Common Share)(Class A Share)

2.

Type and Total Number of Issued Shares(Common Share) 1,386,667,167(Including 79,762,500 Treasury Shares)(Class A Share)
1

3.

Number of Shareholders(Common Share)(Class A Share)

4.

Major Shareholders
Name

3,600,000,000
1

220,536
1

Number of Shares
Shareholding
CommonClass A
Ratio (%)
Total Share
Share
Share
276,922,800
1 276,922,801
21.19

Minister of Economy, Trade and Industry
The Master Trust Bank of Japan, Ltd. (Trust
180,179,600– 180,179,600
Account)
Custody Bank of Japan, Ltd. (Trust Account)
67,459,000–
67,459,000
Japan Petroleum Exploration Co., Ltd.
53,446,600–
53,446,600
JAPAN SECURITIES FINANCE CO., LTD.
33,129,400–
33,129,400
SMBC Nikko Securities Inc.
28,050,100–
28,050,100
STATE STREET BANK WEST CLIENT 19,864,543–
19,864,543
TREATY 505234
CEP LUX-ORBIS SICAV
19,805,492–
19,805,492
Mitsubishi UFJ Morgan Stanley Securities Co.,
19,331,456–
19,331,456
Ltd.
JPMorgan Securities Japan Co., Ltd.
17,116,156–
17,116,156
Notes: 1. The shareholding ratio is calculated after subtracting treasury shares (79,762,500 shares).
2. The shareholding ratio is rounded off to the nearest whole number.
5.

13.79
5.16
4.09
2.53
2.15
1.52
1.52
1.48
1.31

Status of shares granted to the Company’s officers as consideration for their performance of duties
during the year ended December 31, 2022 (common shares)
Category
Number of Shares
Number of Grantees
Directors (including those who
7,474
2
have already retired)
Note: Outside Directors and Audit & Supervisory Board Members are not eligible for the stock-based
compensation system.

6.

Other significant matters regarding shares
At a meeting of the Board of Directors held on August 8, 2022, the Company resolved to acquire treasury stock
to improve capital efficiency and enhance shareholder return, and during the period from August 9, 2022 until
December 12, 2022, the Company acquired 79,762,500 shares of common stock for a total acquisition price of¥119,999,900,900.

70

[Translation for Reference Purposes Only]
III. Items Related to Officers and Audit & Supervisory Board Members
1.

Members of the Board and Audit & Supervisory Board Members (As of December 31, 2022)
Name

Responsibility & Significant
Concurrently Held Positions

Company Position

Toshiaki Kitamura
Takayuki Ueda

Representative Director, Chairman
Representative Director, President & CEO

Takahiko Ikeda

Director, Senior Executive Vice President

Kenji Kawano

Director, Senior Executive Vice President

Kimihisa Kittaka

Director, Senior Managing Executive Officer

Nobuharu Sase

Director, Senior Managing Executive Officer

Daisuke Yamada

Director, Managing Executive Officer

Jun Yanai
Norinao Iio

Director (Outside)
Director (Outside)

Atsuko Nishimura

Director (Outside)

Tomoo Nishikawa

Director (Outside)

Hideka Morimoto

Director (Outside)––
Senior Vice President, Hydrogen &CCUS Development
HSE and Compliance
Americas Projects Unit
Strategic Projects Office
Head of Overseas Projects
Senior Vice President, Corporate
Strategy & Planning,
Legal Affairs
Senior Vice President, General
Administration
Senior Vice President, Finance &Accounting––
Outside Director, TAISEICORPORATION–
Outside Director, Takasago ThermalEngineering Co., Ltd.
–

Noboru Himata

Full-time Audit & Supervisory Board Member
Full-time Audit & Supervisory Board Member
Hideyuki Toyama–(Outside)
Full-time Audit & Supervisory Board Member
Shinya Miyake–(Outside)
Audit & Supervisory Board Member
Outside Director, Concordia Financial
Mitsuru Akiyoshi(Outside)Group, Ltd.
Audit & Supervisory Board Member
Outside Director, Central Japan
Hiroko Kiba
(Outside)
Railway Company
Notes: 1. Directors Kenji Kawano and Hideka Morimoto were elected and assumed their positions at the 16th
Ordinary General Meeting of Shareholders held on March 25, 2022.
2. There were no changes in Directors’ positions or responsible areas of duties during the year ended
December 31, 2022.
3. The Company reported all the Outside Directors and Outside Audit & Supervisory Board Members as
Independent Officers as stipulated by Tokyo Stock Exchange, Inc.
4. There are no special relationships between the Company and TAISEI CORPORATION, Takasago
Thermal Engineering Co., Ltd., Concordia Financial Group, Ltd., or Central Japan Railway Company.
Since the Outside Directors and Outside Audit & Supervisory Board Members do not execute business
operations at the companies they are concurrently serving, their independence is not affected.
5. Audit & Supervisory Board Member Noboru Himata possesses extensive knowledge of finance,accounting and their related matters.
6. Audit & Supervisory Board Member Hideyuki Toyama possesses extensive knowledge of finance,
legal affairs and their related matters.
7. Audit & Supervisory Board Member Shinya Miyake possesses extensive knowledge of international
financing, finance and their related matters.
8. Audit & Supervisory Board Member Mitsuru Akiyoshi possesses extensive knowledge of finance andits related matters.
9. Mr. Shinya Miyake’s name on the family register is Shinya Inoue.
10. Ms. Hiroko Kiba’s name on the family register is Hiroko Yoda.
11. On March 25, 2022, Directors Seiya Ito, Shigeharu Yajima, Yasushi Kimura, and Kiyoshi Ogino retired
71

[Translation for Reference Purposes Only]
due to the expiry of their term office.

72

[Translation for Reference Purposes Only]
2.

Executive Officers (As of January 1, 2023)
Name

Company Position & Responsibility

President & CEO*Takayuki Ueda
Senior Executive Vice President
Senior Vice President, Renewable Energy & New BusinessAmericas Projects Unit
*Kenji Kawano
Strategic Projects Office
Head of Overseas Projects
Senior Managing Executive Officer
Senior Vice President, Corporate Strategy & Planning,*Kimihisa Kittaka
Legal Affairs*Nobuharu Sase
Senior Vice President, General Administration
Hiroshi Fujii
Senior Vice President, Abu Dhabi Projects
Senior Vice President, Oceania Projects
Hitoshi Okawa
General Manager, Perth Office
President Director, Australia
Managing Executive Officer*Daisuke Yamada
Senior Vice President, Finance & Accounting
Toshiaki Takimoto
Senior Vice President, Hydrogen & CCUS Development
Nobusuke Shimada
Senior Vice President, New Ventures & Global Exploration
Kazuyoshi Miura
Senior Vice President, Domestic Energy Supply & Marketing
Yuzo Sengoku
Senior Vice President, Europe & Middle East Projects
Yosuke Happo
Senior Vice President, Logistics & IMT
Senior Vice President, Technical Headquarters
Hideki Kurimura
HSE
Hiromi Sugiyama
Senior Vice President, Domestic Exploration & Production
Senior Vice President, Global Energy Marketing
Hiroshi Kato
General Manager, Gas Business Development Unit
Akihiro Watanabe
Senior Vice President, Asia Projects
Executive Officer
Munehiro Hosono
Akio Kawamura
Yukiyo Ikeda
Shinichi Takada
Shoichi Kaganoi
Tetsuhiro Murayama
Wataru Nojiri
Kei Fukui
Koichi Okamoto
Masaru Miyanaga
Isao Takahashi
Kenji Hasegawa

Vice President, Europe & Middle East Projects
Vice President, Finance & Accounting
Vice President, Europe & Middle East Projects
Posted to INPEX Idemitsu Norge AS (Managing Director, INPEX Idemitsu
Norge AS)
Vice President, Oceania Projects
Perth OfficeSenior Vice President, Development
Vice President, Hydrogen & CCUS Development
General Manager, Technology Development Unit
Vice President, Oceania Projects
Deputy General Manager, Perth OfficeSenior Vice President, Corporate
General Manager, HSE Unit
Vice President, General Administration
General Manager, General Administration Unit
Vice President, Global Energy Marketing
Vice President, Domestic Energy Supply & Marketing
Vice President, Abu Dhabi Projects
General Manager, Abu Dhabi OfficeVice President, Corporate Strategy & Planning
General Manager, Corporate Strategy & Planning Unit73

[Translation for Reference Purposes Only]
Name

Company Position & Responsibility
Vice President, Europe & Middle East Projects
Koji Ochiai
Posted to INPEX Idemitsu Norge AS (Deputy Managing Director, INPEX
Idemitsu Norge AS)
Vice President, Renewable Energy & New BusinessYoshiro Konda
Posted to INPEX Renewable Energy Europe Ltd. (Managing Director, INPEX
Renewable Energy Europe Ltd.)
Note: The above Executive Officers marked * concurrently serve as Directors.
3.

Outline of Liability Limitation Agreement
Based on the provisions of Article 427, Paragraph 1 of the Companies Act and the Company’s Articles ofIncorporation, the Company has entered into agreements with each Outside Director and each Audit &Supervisory Board Member to limit their liability for damages to the Company stipulated in Article 423,
Paragraph 1 of the Companies Act. The liability for damages under the agreement is limited to the minimum
liability amount stipulated in Article 425, Paragraph 1 of the Companies Act.

4.

Outline of the content of the indemnity agreements
The Company has entered into indemnity agreements with Mr. Toshiaki Kitamura, Mr. Takayuki Ueda, Mr.
Takahiko Ikeda, Mr. Kenji Kawano, Mr. Kimihisa Kittaka, Mr. Nobuharu Sase, Mr. Daisuke Yamada, Mr. Jun
Yanai, Mr. Norinao Iio, Ms. Atsuko Nishimura, Mr. Tomoo Nishikawa and Mr. Hideka Morimoto as
Directors and Mr. Noboru Himata, Mr. Hideyuki Toyama, Mr. Shinya Miyake, Mr. Mitsuru Akiyoshi and Ms.
Hiroko Kiba as Audit & Supervisory Board Members in accordance with the provisions of Article 430-2,
Paragraph 1, of the Companies Act, indemnifying them for expenses and losses under Items 1 and 2 of thesame Paragraph, respectively, within the limits prescribed by laws and regulations. Under this agreement, theCompany shall require the return by a Director or an Audit & Supervisory Board Member of any
indemnification for expenses, etc. received, if it is ascertained that the Director or Audit & Supervisory
Board Member executed his/her duties with the aim of unfairly benefiting him/herself or a third party, or ofdamaging the Company’s interests.

5.

Outline of the content of the liability insurance contracts for officers, etc.
The Company has concluded liability insurance contracts for officers, etc., with Directors and Audit &Supervisory Board Members of the Company and its 69 subsidiaries as well as Executive Officers of theCompany as the insured parties, providing compensation for damage arising as a result of the responsibilities
assumed by insured officers in their execution of duties, or any claims made against them with regard to these
responsibilities. The contract contains exemptions, including the case that compensation will not be made forliability arising as a result of intentional acts or gross negligence. In addition, the full amount of the insurance
premiums is borne by the Company.

6.

Compensation for Directors and Audit & Supervisory Board Members during the Year Ended December
31, 2022(1) Policy on Determining Compensation Amounts for Directors and Audit & Supervisory Board Members andCalculation Methods and Determination Methods(Basic policy of compensation for Directors, etc.)
The Company’s basic policy on compensation for Directors is as follows.
1. Attractive to recruit and retain qualified management personnel to realize the Company’s management
philosophy
2. Raise awareness of the need to contribute to the sustainable growth and medium- to long-term enhancementof corporate value of the Company
3. The compensation system shall be highly transparent and objective to ensure accountability to shareholders
and other stakeholders.
Based on the basic policy, the Company has passed a resolution at a Board of Directors’ meeting as below, on
the policy for determining the content of compensation, etc. for individual Directors. In determining the content
of compensation, etc. for each individual Director, as an advisory body to the Board of Directors, theNomination and Compensation Advisory Committee, the majority of whose members are Outside Directors,
74

[Translation for Reference Purposes Only]
conducts a multifaceted review including consistency between the draft and the decision policy, and the Boardof Directors also respects the report of the Committee and judges that it is in line with the decision policy.
(Compensation levels)
The level of compensation for Directors of the Company shall be set by a resolution of the Board of Directors
after the Nomination and Compensation Advisory Committee verifies the appropriateness of the level after
conducting an analysis of the level of compensation for each position in a peer group of companies of the same
size and similar industries, utilizing data from external research organizations. The compensation shall be
reviewed as necessary to meet changes in the external environment, etc.
(Compensation composition)
The compensation composition of the Company’s Directors (excluding Outside Directors) consists of basic
compensation in accordance with the duties of each position, bonuses as short-term incentive compensation,and stock-based compensation as medium- to long-term incentive. Compensation for Outside Directors andAudit & Supervisory Board Members consists only of basic compensation from the perspective of the
independence of their duties.
1. Basic compensation
・ Cash compensation to be paid as a fixed monthly compensation based on the duties of each Director byposition・ In addition to the above, cash compensation to be paid in addition to the monthly fixed compensation to
Outside Directors who also serve as committee members
2. Bonuses
・ Performance-based cash compensation to be paid in June each year, taking into account the Company’s
performance for a single fiscal year and the performance of the division in charge
・ In addition to net income attributable to owners of parent (hereinafter “net income”) and cash flows fromoperating activities before exploration, which are the Company’s main financial indicators, safety
indicators (zero major accidents), which are indispensable to fulfill the Company’s mission of stableenergy supply, are adopted as non-financial indicators. The amount of compensation is calculated basedon the evaluation weights in the table below according to the degree of achievement of these targets, andthe final amount of compensation fluctuates within the range of 0% to 200%.
・ The degree of achievement of the targets of the divisions under each Director’s jurisdiction, excluding thePresident, Chairman, etc., shall be annually evaluated, and the results of the evaluation of each division
shall be reflected in the bonus amount of each Director calculated based on the degree of achievement ofcorporate performance indicators.
Bonus KPI
Financial indicators
Non-financial
indicators

Net income
Cash flows from operating activities before exploration
Safety indicators (zero major accidents)

Evaluation weight
45%
45%
10%

3. Stock-based compensation
・ Stock-based compensation to be paid to Directors after their retirement that combines performance-based
elements aimed at raising Directors’ awareness of their contribution to the Company’s medium- to longterm business performance and enhancement of corporate value, and fixed elements aimed at strengthening
Directors’ awareness of sharing interests with shareholders through ownership of the Company’s shares
・ The standard amount of stock-based compensation is set for each position, and a portion of the standard
amount is linked to performance share, while the remainder is comprised of non-performance share stockbased compensation.
・ The Company’s performance indicators for the performance share portion will be based on the key
management indicators in the medium-term business plan, such as net income, cash flows from operating
activities before exploration, ROE and total payout ratio, as well as on the performance indicators for75

[Translation for Reference Purposes Only]
production cost per BOE and net carbon intensity, with the goal of thoroughly strengthening the oil andnatural gas business and promoting each business in the Net Zero 5 fields. Depending on the degree ofachievement of these goals, the amount of compensation will be calculated based on the evaluation weights
in the table below, and the final amount of compensation will vary within the range of 0 to 200%.
・ The non-performance share portion will be paid as stock-based compensation with a fixed number ofshares to be delivered, from the perspective of strengthening the sense of shared interests with shareholders.
・ Stock-based compensation is provided through a system using the Board Incentive Plan Trust. Under thissystem, points are granted annually to those eligible for the system based on their position, performance,
etc., and in principle, the Company’s shares equivalent to the accumulated number of points are deliveredfrom the trust after the retirement of those eligible for the system.
・ For stock-based compensation, in the event that a Director, etc. commits a significant improper or illegalact, the Company may cancel or forfeit their right to receive the Company’s shares under the system(malus) and demand the return of cash corresponding to the Company’s shares already delivered to them(clawback).
Stock-based compensation KPI
Evaluation weight
Net income
30%
Cash flows from operating activities before exploration
30%
Financial indicators
ROE
10%
Total payout ratio
10%
Production cost per BOE
10%
Non-financial
indicators
Net Carbon Intensity
10%
・ The ratio of the President’s basic compensation, bonuses, and stock-based compensation when the target
achievement level for each index is 100% is set generally at 50%:30%:20%, respectively.
The year-end performance of KPIs for stock-based compensation and bonuses for the year ended December
31, 2022 are listed in “[Reference] Overview of Medium-Term Business Plan 2022-2024” under “1. Present
State of the Corporate Group.” Stock-based compensation and bonuses for the year ended December 31, 2022
are determined at a Board of Directors meeting, after passing through a multifaceted review and deliberations
by the Nomination and Compensation Advisory Committee, and with reference to the year-end performance.
(Compensation decision process)・ In order to strengthen the independence, objectivity and accountability of the Board of Directors’ functions
in determining Directors’ compensation, the Company has established the Nomination and Compensation
Advisory Committee, the majority of whose members are Independent Outside Directors, as an advisory
body to the Board of Directors. Based on the report of the Committee, the Board of Directors establishesa policy for determining the amount of compensation for Directors and the method of calculating suchamount. The compensation for the Audit & Supervisory Board Members is determined throughconsultation among the Audit & Supervisory Board Members within the limits approved at the General
Meeting of Shareholders.
・ The Nomination and Compensation Advisory Committee shall, in principle, meet at least four (4) times ayear to deliberate major matters concerning the policy for determining the amount and calculation methodof compensation, etc. for Directors and the details of compensation, etc. for each individual, and to provide
advice and proposals to the Board of Directors, and the Board of Directors makes decisions with the utmost
respect for the content of such advice and proposals. The amount of compensation to be paid to each
Director (including the final amount of bonuses based on the evaluation of the performance of the divisionin charge) shall be decided by the Representative Director, President & CEO Takayuki Ueda, who is mostfamiliar with the Company’s management situation, based on the content of the advice and proposals of
the Committee.
・ Considering the external environment and social and economic trends, etc. surrounding the Company, theNomination and Compensation Advisory Committee shall carefully deliberate on the appropriateness ofthe target value and calculation method for performance-based compensation, and may make adjustments
to the calculation of the amount of compensation for each Director by resolution of the Board of Directors.
76[Translation for Reference Purposes Only](2) Compensation for Directors and Audit & Supervisory Board Members during the Year Ended December 31,
2022
Total Compensation by Type (Millions of yen)
No. of
Performance-based Compensation,
Total
Category
Eligibleetc.
Compensation
Basic(Millions of yen) Compensation
Officers
Stock-based
BonusesCompensation
Directors
610
443
130
36
16
Inside
535
368
130
36
9
Outside74
74––
7
Audit & Supervisory
124
124
–
–
5
Board Members
Inside33
33––
1Outside9090––4Notes: 1. The above table includes four Directors (including two Outside Directors) who retired at theconclusion of the 16th Ordinary General Meeting of Shareholders held on March 25, 2022.
2. Salaries for Directors who are also employees do not include the portion of salary for an employee
in the above compensation amount.
3. The basic compensation for Directors was set to be an annual amount within ¥900 million including
bonuses (including within ¥100 million for Outside Directors) at the 16th Ordinary General Meetingof Shareholders held on March 25, 2022, and the number of Directors as of the date of such resolution
was twelve (12) (including five (5) Outside Directors).
4. The basic compensation for Audit & Supervisory Board Members was resolved at the 16th Ordinary
General Meeting of Shareholders held on March 25, 2022 to be an annual amount within ¥140
million, and the number of Audit & Supervisory Board Members as of the date of such resolution is
five (5).
5. Bonuses for Directors are stated as amounts that are recorded as accrued bonuses to officers. The
amounts that are recorded as accrued bonuses to officers undergo a multifaceted review anddeliberations by the Nomination and Compensation Advisory Committee.
6. Stock-based compensation is included in non-monetary compensation.
7. The Company resolved to introduce stock-based compensation system for Directors and Executive
Officers (the Board Incentive Plan Trust) at the 12th Ordinary General Meeting of Shareholders heldon June 26, 2018. The stock-based compensation figures in the table above represent the fees
incurred with regard to the stock-based points assigned to Directors in the year ended December 31,
2022 concerning the Board Incentive Plan Trust. At the 16th Ordinary General Meeting of
Shareholders held on March 25, 2022, the maximum amount of money to be contributed by theCompany in one (1) fiscal year was revised to ¥434 million and the maximum amount of points
granted in one (1) fiscal year to those eligible for the system was revised to 806,000 points(equivalent to 806,000 shares of the Company), and the number of Directors (excluding Outside
Directors and non-residents in Japan) as of the date of such resolution is seven (7).

77[Translation for Reference Purposes Only]
7.

Items Related to Outside Directors and Audit & Supervisory Board Members
Major activities of Outside Directors and Audit & Supervisory Board Members
1) Outside Directors
Name

Jun Yanai

Norinao Iio

Atsuko Nishimura

Tomoo Nishikawa

Main activities, etc.
He is expected to play a role in supervising and advising on theexecution of business operations from the international, legal,
and risk management perspectives by leveraging his experience
as a corporate manager and his extensive experience and insightin the resources and energy industries. He has made necessary
statements and proposals at meetings of the Board of Directors
and meetings for exchanging opinions with the Representative
Director.
In addition, as a member of the Nomination and Compensation
Advisory Committee, he participates in the deliberations of thecommittee, and as the chairman of the Compensation System
Review Subcommittee, he led discussions on the revision of theexecutive compensation system in March 2022, thereby
contributing to strengthened transparency and objectivity
regarding director nominations and compensation.
He is expected to play a role in supervising and advising on theexecution of business operations from an international
perspective by leveraging his experience as a corporate manager
and his extensive experience and insight in the resources andenergy industries. He has made necessary statements andproposals at meetings of the Board of Directors and meetings forexchanging opinions with the Representative Director.
In addition, as a member of the Nomination and Compensation
Advisory Committee, he participates in the deliberations of thecommittee and contributes to strengthening the transparency andobjectivity of the nomination and compensation of Directors.
She is expected to play a role in supervising and advising on theexecution of business operations from a diverse and global
perspective by leveraging her extensive experience as a
diplomat and broad insight into international affairs as well as
her expertise as an Ambassador Extraordinary andPlenipotentiary (in charge of Women, Human Rights andHumanitarian Affairs) and a university professor. She has madenecessary statements and proposals at meetings of the Board of
Directors and meetings for exchanging opinions with the
Representative Director.
In addition, as a member of the Nomination and Compensation
Advisory Committee, she participates in the deliberations of thecommittee and contributes to strengthening the transparency andobjectivity of the nomination and compensation of Directors.
He is expected to play a role in supervising and advising on theexecution of business operations from a diverse and global
perspective by leveraging his extensive experience and insightas an international lawyer and representative attorney at law, as
well as his knowledge in a variety of fields such as expert
knowledge as a certified tax accountant and university professor.
He has made necessary statements and proposals, etc. atmeetings of the Board of Directors and meetings for exchanging
opinions with the Representative Director.
78

Attendance at Boardof Directors meetings

15 out of 15(100%)

15 out of 15(100%)

15 out of 15(100%)

15 out of 15(100%)

[Translation for Reference Purposes Only]

Hideka Morimoto

He is expected to play a role in supervising and advising on theexecution of business operations from the perspective ofsustainability (ESG) by leveraging his extensive experience andinsight on environmental and energy policies as Administrative
Vice-Minister, Ministry of the Environment as well as his
knowledge in a variety of fields such as expert knowledge as auniversity professor. He has made necessary statements andproposals, etc. at meetings of the Board of Directors andmeetings for exchanging opinions with the Representative
Director.

12 out of 12(100%)

2) Outside Audit & Supervisory Board Members

Name

Hideyuki Toyama

Shinya Miyake

Mitsuru Akiyoshi

Hiroko Kiba

Comments made, etc. in Board of Directors
meetings and Audit & Supervisory Board meetings
He appropriately made necessary comments during
deliberations of proposals, etc. based on his extensive
experience and broad range of insights in the field offinance and his expertise and experience as a lawyer.
He appropriately made necessary comments during
deliberations of proposals, etc. based on his extensive
experience and broad range of insights in the field ofinternational financing and finance.
He appropriately made necessary comments during
deliberations of proposals, etc. based on his extensive
experience and broad range of insights in the field offinance and management.
She appropriately made necessary comments during
deliberations of proposals, etc. based on her wide anddiverse range of knowledge created through herabundant experience as a freelance newscaster, auniversity instructor, and a member of the Advisory
Committee for Natural Resources and Energy andCouncil for Transport Policy.

Attendanceat Board of
Directors
meetings

Attendanceat Audit &Supervisory
Board
meetings

15 out of 15(100%)

19 out of 19(100%)

15 out of 15(100%)

19 out of 19(100%)

15 out of 15(100%)

19 out of 19(100%)

15 out of 15(100%)

19 out of 19(100%)

Note: Fractions less than the indicated units are truncated for amounts shown in the business report except for
amounts with other notes.

79[Translation for Reference Purposes Only]

Consolidated Balance Sheet
Unit: millions of yen (Amounts truncated to millions of yen)Accounts(Assets)
Current assets
Cash and deposits
Accounts receivable-trade
Accounts receivable-trade andcontract assets
Securities
Inventories
Accounts receivable-other
Other
Less allowance for doubtful
accounts
Fixed assets
Tangible fixed assets
Buildings and structures
Wells
Machinery, equipment andvehiclesLand
Construction in progress
Other

As of
December31, 2021(Reference)

As ofDecember31, 2022

518,864
201,765
168,224–

729,401
227,829–
252,938–
47,81742,30970,852(12,104)

58,152
68,15461,75873,588(13,020)

4,639,332
2,259,849
163,165
345,946
1,418,656

5,532,903
2,473,118
157,137
340,259
1,583,141

18,666
292,836
20,57818,178339,787
34,615Intangible assets
Goodwill
Exploration and development
rightsMining rights
Other446,660
29,550150,902482,704
40,332
152,178

260,182
6,025

283,518
6,674

Investments and other assets
Investment securities
Long-term loans receivable
Recoverable accounts under
production sharing
Deferred tax assets
Asset for retirement benefits
Other
Less allowance for doubtful
accounts
Less allowance for recoverable
accounts under production
sharing
Less allowance for investments
in exploration

1,932,821
403,356
1,011,801
548,170

2,577,080
745,365
1,279,383
521,541

21,713–
11,704(652)

69,705
1,734
15,765(690)(61,871)(53,873)(1,400)(1,852)

As ofDecember31, 2021(Reference)

As ofDecember31, 2022

348,888
14,88880,49351,35098,5181,386
200

526,740
47,18375,878
126,675
118,448
1,458
130

9,400
9,444

8,631
3,391

672
82,533

15,504
129,439

Long-term liabilities
Bonds payable
Long-term debt
Deferred tax liabilities
Provision for stocks payment
Provision for special repair andmaintenance
Liability for retirement benefits
Asset retirement obligations
Other

1,462,897
30,0001,069,721
81,192100
650

1,697,202
30,0001,164,369
178,967
245
705

7,048
258,339
15,845689
303,159
19,064

Total liabilities

1,811,786

2,223,943

2,680,624
290,809681,398
1,783,841(75,425)
443,441

2,919,277
290,809683,382
2,066,443(121,358)
857,566

2,640

4,147

(16,171)

32,421456,972

820,997

222,344

261,517

3,346,409
5,158,196

4,038,361
6,262,304

Accounts(Liabilities)
Current liabilities
Accounts payable-trade
Short-term loans
Income taxes payable
Accounts payable-other
Provision for bonuses
Provision for bonuses to
officers
Provision for loss on business
Provision for exploration
projects
Asset retirement obligations
Other(Net assets)
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Accumulated othercomprehensive income
Unrealized holding gain (loss)
on securities
Deferred gain (loss) onhedgesTranslation adjustments
Non-controlling interests

Total net assets
Total assets
5,158,196
6,262,304
Total liabilities and net assets
Note: The figures in “As of December 31, 2021 (Reference)” are outside the scope of audits.

80

[Translation for Reference Purposes Only]

Consolidated Statement of Income
Unit: millions of yen (Amounts truncated to millions of yen)Accounts

For the year ended December 31, 2021
(Reference)(January 1, 2021 to
December 31, 2021)
1,244,369
568,921675,448
6,445
78,346590,657

For the year ended December 31, 2022
(January 1, 2022 to
December 31, 2022)

Net sales
Cost of sales
Gross profit
Exploration expenses
Selling, general and administrative expenses
Operating income
Other income
31,115Interest income
7,456
Dividend income
38,834Equity in earnings of affiliates
Gain on reversal of allowance for recoverable
7,572
accounts under production sharing
Foreign exchange gain–
27,268Other
112,246
Other expenses
Interest expense
13,747
6,709
Foreign exchange loss–
Modification loss on financial assets
24,819Other
45,276
Ordinary income
657,627
Extraordinary loss
14,17014,170
Impairment loss
Income before income taxes
643,457
395,437
Income taxes-current
34,094
Income taxes-deferred
429,532
213,924
Net income
Net income (loss) attributable to non(9,123)
controlling interests
Net income attributable to owners of parent
223,048
Note: The figures in “For the year ended December 31, 2021 (Reference)” are outside the scope of audits.

81

2,324,660
943,414
1,381,245
29,202
105,634
1,246,408
64,687
9,499
161,931
7,396
30,37557,99532,378–85,48322,19025,799952,982
17,563331,885

140,051
1,438,242
25,7991,412,443
970,546441,897
3,620
438,276

[Translation for Reference Purposes Only]

Non-Consolidated Balance Sheet
Unit: millions of yen (Amounts truncated to millions of yen)Accounts(Assets)
Current assets
Cash and deposits
Accounts receivable-tradeFinished goods
Work in process and partlyfinished construction
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Short-term loans receivablefrom subsidiaries and affiliates
Deposit paid in subsidiaries andaffiliates
Other
Allowance for doubtful
accounts
Fixed assets
Tangible fixed assets
Buildings
Structures
Wells
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Leased assets
Construction in progress
Intangible assets
Goodwill
Mining right
Software
Other

Investments and other assets
Investment securities
Investments in stock ofsubsidiaries and affiliates
Long-term loans receivablefrom subsidiaries and affiliates
Long-term prepaid expenses
Prepaid pension costs
Deferred tax assets
Other
Allowance for doubtful
accounts
Allowance for investments in
exploration

As ofDecember31, 2021(Reference)
758,260
445
27,161
6,988
288
10,652
1,596
1,178
181,468
549,116
28,548(49,184)

2,234,151
218,964
15,677
141,420455
41,352
16784
16,456190
2,610
35,391
29,550
5
1,309
4,526

1,979,794
37,9301,910,324
121,240
190
–
8,992
8,117
(652)
(106,348)

As of
December31, 2022

Accounts(Liabilities)
Current liabilities
Accounts payable-trade
Current portion of long-term debt
Lease obligations
Accounts payable-otherAccrued expenses
23,862
Income taxes payable
119
Advances received
3,363
Deposits payable
181,152
Deposits received fromsubsidiaries and affiliates
533,087
Provision for bonuses
Provision for bonuses to officers
53,605
Provision for loss on business(53,882)
Asset retirement obligations
Other791,654454
39,345
10,238306

2,243,975
221,531
15,497
136,354
5,620
39,63822
1,155
15,885174
7,182

Long-term liabilities
Bonds payable
Long-term debt
Lease obligations
Deferred tax liabilities
Accrued retirement benefits toemployees
Provision for stocks payment
Provision for loss on business of
subsidiaries and affiliates
Provision for loss on guaranteesof subsidiaries and affiliates
Asset retirement obligations
28,64022,597Other
6
Total liabilities
1,705(Net assets)
4,331 Shareholders’ equity
Common stock
Capital surplus
Legal capital surplus
1,993,803
Retained earnings
28,618Other retained earnings
1,876,450
Reserve for advanced
depreciation of non-current assets
131,506
Mine prospecting reserve
Retained earnings brought
212
forward
3,058
Treasury stock
36,755 Valuation, translation
8,183 adjustments and others(690)
Unrealized holding gain (loss)
on securities(90,292)
Deferred gain (loss) on hedges

Total net assets
Total assets
2,992,411
3,035,629
Total liabilities and net assets
Note: The figures in “As of December 31, 2021 (Reference)” are outside the scope of audits.

82

As of
December31, 2021(Reference)

As ofDecember31, 2022

93,293
3,549
36,18024
15,586
2,359
1,587
0
14,743
7,502

97,831
23,74916,90325
26,090
7,896
1,793
21
3,650
5,347

1,168
200
9,400
27
961

1,231
130
8,631
708
1,651

823,591
30,000724,981
180
1,181
6,268

829,731
30,000711,321
166
1,363
–

100
15,602245
20,43039,79845,9105,118
358
916,885

20,133
161
927,5632,074,934
290,809
1,023,802
1,023,802
835,747
835,747
2,105

2,104,983
290,809
1,023,802
1,023,802
911,728
911,728–8,108825,533

8,108
903,620(75,425)591(121,358)
3,082

2,566

4,546

(1,974)(1,463)

2,075,526
2,992,411

2,108,065
3,035,629

[Translation for Reference Purposes Only]

Non-Consolidated Statement of Income
Unit: millions of yen (Amounts truncated to millions of yen)Accounts

For the year ended December 31, 2021
(Reference)(January 1, 2021 to
December 31, 2021)
154,773
111,481
43,291
134
35,2497,907

For the year ended December 31, 2022
(January 1, 2022 to
December 31, 2022)

Net sales
Cost of sales
Gross profit
Exploration expenses
Selling, general and administrative expenses
Operating income (loss)
Other income
Interest income
9,248
Dividend income
24,888Gain on sales of investment securities
6,397
Foreign exchange gain
472
Other
14,103
55,110
Other expenses
Interest expenses
8,176
Provision of allowance for doubtful accounts
5,246
Provision of allowance for investment loss in
551
exploration
Provision for loss on business of subsidiaries
416
and affiliates
Provision for loss on guarantees of subsidiaries
4,881
and affiliates
Other
30,13949,411
Ordinary income
13,606
Income before income taxes
13,606
Income taxes-current
4,382
Income taxes-deferred(4,049)333
Net income
13,272
Note: The figures in “For the year ended December 31, 2021 (Reference)” are outside the scope of audits.

83

241,042
209,341
31,700817
41,974(11,091)
17,694
190,299
6,972
13,665
21,910250,542

18,218
4,778
–
4,828
6,333
1,616
1,064
(29,046)

35,776
203,674
203,674(27,981)
231,656

[Translation for Reference Purposes Only]<Copy of the Report of the Accounting Auditors on the Consolidated Financial Statements>

Independent Auditor’s ReportFebruary 15, 2023
The Board of Directors
INPEX CORPORATION
Ernst & Young ShinNihon LLC
Tokyo OfficeKazuhiko Yamazaki
Certified Public Accountant
Designated and Engagement Partner
Satoshi Takahashi
Certified Public Accountant
Designated and Engagement Partner
Mikio Shimizu
Certified Public Accountant
Designated and Engagement Partner
Kentaro Moronuki
Certified Public Accountant
Designated and Engagement Partner
OpinionPursuant to Article 444, Paragraph 4 of the Companies Act, we have audited the accompanying consolidated
financial statements, which comprise the consolidated balance sheet, the consolidated statement of income, theconsolidated statement of changes in net assets and the notes to the consolidated financial statements of INPEXCORPORATION (the “Company”) for the fiscal year from January 1, 2022 through December 31, 2022.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, thefinancial position and results of operations of the Group, which consists of the Company and its consolidated
subsidiaries, for the period covered by the consolidated financial statements in conformity with accounting
principles generally accepted in Japan.
Basis for the Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities
under the auditing standards is stated in “Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements.” We are independent of the Company and its consolidated subsidiaries in accordance with the provisions
related to professional ethics in Japan, and are fulfilling other ethical responsibilities as an auditor. We believe that
we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.
Other Contents
Other contents are the business reports and annexed specifications. Management is responsible for the preparationand disclosure of the other contents. Audit & Supervisory Board Members and the Audit & Supervisory Board are
responsible for monitoring the execution of Directors’ duties related to designing and operating the other contents
reporting process.
The subject of our opinion on the consolidated financial statements does not include the other contents, and we do
not express an opinion on the other contents.
Our responsibility in the audit of the consolidated financial statements is to read through the other contents, and in
the process of reading through, to examine if there are any major discrepancies between the other contents and the84

[Translation for Reference Purposes Only]
consolidated financial statements, and with the findings obtained in our audit process. It is also our responsibility to
pay attention to whether there are any indications of serious errors in the other contents, other than such major
discrepancies.
Based on the work we perform, if it is determined that there are serious errors in the other contents, we are requested
to report on the facts of those errors.
There are no matters for us to report in relation to the other contents.
Responsibilities of Management, Audit & Supervisory Board Members and the Audit & Supervisory Board for theConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for designing and operating such internal
control as management determines is necessary to enable the preparation and fair presentation of the consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate
to prepare the consolidated financial statements in accordance with the premise of a going concern, and fordisclosing matters relating to going concern when it is required to do so in accordance with accounting principles
generally accepted in Japan.
Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for monitoring theexecution of Directors’ duties related to designing and operating the financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our responsibilities are to obtain reasonable assurance about whether the consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to express an opinion on the
consolidated financial statements from an independent standpoint in an audit report, based on our audit.
Misstatements can occur as a result of fraud or error, and are deemed material if they can be reasonably expected
to, either individually or collectively, influence the decisions of users taken on the basis of the consolidated financial
statements.
We make professional judgment in the audit process in accordance with auditing standards generally accepted inJapan, and perform the following while maintaining professional skepticism.
•
Identify and assess the risks of material misstatement, whether due to fraud or error. Design and implement
audit procedures to address the risks of material misstatement. The audit procedures shall be selected andapplied as determined by the auditor. In addition, sufficient and appropriate audit evidence shall be obtained
to provide a basis for the audit opinion.
•
In making those risk assessments, the auditor considers internal control relevant to the entity’s audit in orderto design audit procedures that are appropriate in the circumstances, although the purpose of the audit of theconsolidated financial statements is not to express an opinion on the effectiveness of the entity’s internal
control.
•
Assess the appropriateness of accounting policies adopted by management and the method of theirapplication, as well as the reasonableness of accounting estimates made by management and the adequacy ofrelated notes.
•
Determine whether it is appropriate for management to prepare the consolidated financial statements on thepremise of a going concern and, based on the audit evidence obtained, determine whether there is asignificant uncertainty in regard to events or conditions that may cast significant doubt on the entity’s ability
to continue as a going concern. If there is a significant uncertainty concerning the premise of a going
concern, the auditor is required to call attention to the notes to the consolidated financial statements in theaudit report, or if the notes to the consolidated financial statements pertaining to the significant uncertainty
are inappropriate, issue a modified opinion on the consolidated financial statements. While the conclusions of
the auditor are based on the audit evidence obtained up to the date of the audit report, depending on future
events or conditions, an entity may be unable to continue as a going concern.
•
Besides assessing whether the presentation of and notes to the consolidated financial statements are inaccordance with accounting principles generally accepted in Japan, assess the presentation, structure, and85

[Translation for Reference Purposes Only]
content of the consolidated financial statements including related notes, and whether the consolidated
financial statements fairly present the transactions and accounting events on which they are based.
•
Obtain sufficient and appropriate audit evidence regarding the financial information of the Company and its
consolidated subsidiaries in order to express an opinion on the consolidated financial statements. The auditor
is responsible for instructing, supervising, and implementing the audit of the consolidated financial
statements, and is solely responsible for the audit opinion.
The auditor reports to Audit & Supervisory Board Members and the Audit & Supervisory Board regarding the scope
and timing of implementation of the planned audit, material audit findings including material weaknesses in internal
control identified in the course of the audit, and other matters required under the auditing standards.
The auditor reports to Audit & Supervisory Board Members and the Audit & Supervisory Board regarding theobservance of provisions related to professional ethics in Japan as well as matters that are reasonably considered tohave an impact on the auditor’s independence and any safeguards that are in place to reduce or eliminate obstacles.
Interest
Our firm and engagement partners have no interests in the Company or its consolidated subsidiaries requiring
disclosure under the provisions of the Certified Public Accountants Act of Japan.

86

[Translation for Reference Purposes Only]<Copy of the Report of the Accounting Auditors on the Non-Consolidated Financial Statements>

Independent Auditor’s ReportFebruary 15, 2023
The Board of Directors
INPEX CORPORATION
Ernst & Young ShinNihon LLC
Tokyo OfficeKazuhiko Yamazaki
Certified Public Accountant
Designated and Engagement Partner
Satoshi Takahashi
Certified Public Accountant
Designated and Engagement Partner
Mikio Shimizu
Certified Public Accountant
Designated and Engagement Partner
Kentaro Moronuki
Certified Public Accountant
Designated and Engagement Partner
OpinionPursuant to Article 436, Paragraph 2, Item 1 of the Companies Act, we have audited the accompanying financial
statements, which comprise the balance sheet, the statement of income, the statement of changes in net assets, thenotes to the financial statements and the accompanying supplementary schedules of INPEX CORPORATION (the“Company”) for the 17th fiscal year from January 1, 2022 through December 31, 2022.
In our opinion, the financial statements and the accompanying supplementary schedules referred to above present
fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its
operations for the year then ended in conformity with accounting principles generally accepted in Japan.
Basis for the Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities
under the auditing standards is stated in “Auditor’s Responsibilities for the Audit of the Financial Statements andthe Accompanying Supplementary Schedules.” We are independent of the Company in accordance with theprovisions related to professional ethics in Japan, and are fulfilling other ethical responsibilities as an auditor. We
believe that we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.
Other Contents
Other contents are the business reports and annexed specifications. Management is responsible for the preparationand disclosure of the other contents. Audit & Supervisory Board Members and the Audit & Supervisory Board are
responsible for monitoring the execution of Directors’ duties related to designing and operating the other contents
reporting process.
The subject of our opinion on the financial statements and the accompanying supplementary schedules does notinclude the other contents, and we do not express an opinion on the other contents.
Our responsibility in the audit of the financial statements and the accompanying supplementary schedules is to readthrough the other contents, and in the process of reading through, to examine if there are any major discrepancies
between the other contents and the financial statements and the accompanying supplementary schedules, and with87

[Translation for Reference Purposes Only]
the findings obtained in our audit process. It is also our responsibility to pay attention to whether there are any
indications of serious errors in the other contents, other than such major discrepancies.
Based on the work we perform, if it is determined that there are serious errors in the other contents, we are requested
to report on the facts of those errors.
There are no matters for us to report in relation to the other contents.
Responsibilities of Management, Audit & Supervisory Board Members and the Audit & Supervisory Board for the
Financial Statements and the Accompanying Supplementary Schedules
Management is responsible for the preparation and fair presentation of the financial statements and theaccompanying supplementary schedules in accordance with accounting principles generally accepted in Japan, andfor designing and operating such internal control as management determines is necessary to enable the preparationand fair presentation of the financial statements and the accompanying supplementary schedules that are free frommaterial misstatement, whether due to fraud or error.
In preparing the financial statements and the accompanying supplementary schedules, management is responsible
for assessing whether it is appropriate to prepare the financial statements and the accompanying supplementaryschedules in accordance with the premise of a going concern, and for disclosing matters relating to going concern
when it is required to do so in accordance with accounting principles generally accepted in Japan.
Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for monitoring theexecution of Directors’ duties related to designing and operating the financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements and the Accompanying Supplementary Schedules
Our responsibilities are to obtain reasonable assurance about whether the financial statements and the accompanying
supplementary schedules as a whole are free from material misstatement, whether due to fraud or error, and to
express an opinion on the financial statements and the accompanying supplementary schedules from an independent
standpoint in an audit report, based on our audit. Misstatements can occur as a result of fraud or error, and are
deemed material if they can be reasonably expected to, either individually or collectively, influence the decisions ofusers taken on the basis of the financial statements and the accompanying supplementary schedules.
We make professional judgment in the audit process in accordance with auditing standards generally accepted inJapan, and perform the following while maintaining professional skepticism.
•
Identify and assess the risks of material misstatement, whether due to fraud or error. Design and implement
audit procedures to address the risks of material misstatement. The audit procedures shall be selected andapplied as determined by the auditor. In addition, sufficient and appropriate audit evidence shall be obtained
to provide a basis for the audit opinion.
•
In making those risk assessments, the auditor considers internal control relevant to the entity’s audit in orderto design audit procedures that are appropriate in the circumstances, although the purpose of the audit of thefinancial statements and the accompanying supplementary schedules is not to express an opinion on theeffectiveness of the entity’s internal control.
•
Assess the appropriateness of accounting policies adopted by management and the method of theirapplication, as well as the reasonableness of accounting estimates made by management and the adequacy ofrelated notes.
•
Determine whether it is appropriate for management to prepare the financial statements and theaccompanying supplementary schedules on the premise of a going concern and, based on the audit evidence
obtained, determine whether there is a significant uncertainty in regard to events or conditions that may castsignificant doubt on the entity’s ability to continue as a going concern. If there is a significant uncertainty
concerning the premise of a going concern, the auditor is required to call attention to the notes to the financial
statements and the accompanying supplementary schedules in the audit report, or if the notes to the financial
statements and the accompanying supplementary schedules pertaining to the significant uncertainty areinappropriate, issue a modified opinion on the financial statements and the accompanying supplementaryschedules. While the conclusions of the auditor are based on the audit evidence obtained up to the date of theaudit report, depending on future events or conditions, an entity may be unable to continue as a going
concern.
88

[Translation for Reference Purposes Only]
Besides assessing whether the presentation of and notes to the financial statements and the accompanying
supplementary schedules are in accordance with accounting principles generally accepted in Japan, assess thepresentation, structure, and content of the financial statements and the accompanying supplementaryschedules including related notes, and whether the financial statements and the accompanying supplementaryschedules fairly present the transactions and accounting events on which they are based.
The auditor reports to Audit & Supervisory Board Members and the Audit & Supervisory Board regarding the scope
and timing of implementation of the planned audit, material audit findings including material weaknesses in internal
control identified in the course of the audit, and other matters required under the auditing standards.
The auditor reports to Audit & Supervisory Board Members and the Audit & Supervisory Board regarding theobservance of provisions related to professional ethics in Japan as well as matters that are reasonably considered tohave an impact on the auditor’s independence and any safeguards that are in place to reduce or eliminate obstacles.
•

Interest
Our firm and engagement partners have no interests in the Company requiring disclosure under the provisions of
the Certified Public Accountants Act of Japan.

89

[Translation for Reference Purposes Only]<Certified Copy of the Audit Report of the Audit & Supervisory Board>

Audit Report
With respect to the Directors’ performance of their duties during the 17th business year (from January 1, 2022 to
December 31, 2022), the Audit & Supervisory Board of the Company deliberated based on the audit report madeby each Audit & Supervisory Board Member and has prepared this audit report, and hereby report as follows:
1. Method and Contents of Audit by Audit & Supervisory Board Members and the Audit & Supervisory Board
The Audit & Supervisory Board has established the audit plan including the audit policies, audit method,
assignment of duties, etc., and received a report from each Audit & Supervisory Board Member regarding thestatus of implementation of their audits and results thereof. In addition, the Audit & Supervisory Board hasreceived reports from the Directors, etc., and the accounting auditor regarding the status of performance of theirduties, and requested explanations as necessary.
In conformity with the Audit & Supervisory Board Member auditing standards established by the Audit &Supervisory Board, and in accordance with the audit plan, each Audit & Supervisory Board Member endeavoredto facilitate a mutual understanding with the Directors, the internal audit division and other employees, etc.;
endeavored to collect information and maintain and improve the audit environment; attended the meetings of theBoard of Directors and other important meetings; received reports on the status of performance of duties fromthe Directors and other employees, etc., and requested explanations as necessary; examined important
approval/decision documents; and inspected the status of the corporate affairs and assets at the Head Office andmajor business sites. Also, each Audit & Supervisory Board Member received reports from Directors andemployees, etc. on the status of developments and operations concerning the contents of the Board of Directors’
resolutions regarding the development and maintenance of the system to ensure that the Directors’ performanceof their duties as stated in the business reports complied with all laws, regulations and the Articles ofIncorporation of the company and other systems that are set forth in Article 100, paragraphs 1 and 3 of theOrdinance for Enforcement of the Companies Act of Japan as being necessary for ensuring the appropriatenessof the corporate affairs of a stock company and of a group of companies consisting of the company and its
subsidiaries and/or affiliates, and the systems (internal control systems) based on such resolutions; and, requested
explanations as necessary and expressed its opinion. Furthermore, each Audit & Supervisory Board Member
received periodic reports from the Directors, etc. and Ernst & Young ShinNihon LLC concerning the evaluation
and audit of the internal controls relating to financial reporting, and requested explanations as necessary. The
contents of the basic policies set forth in Article 118, item 3, sub-item (a) of the Ordinance for Enforcement of
the Companies Act of Japan and undertakings set forth in the same item 3, sub-item (b) of said article, as
described in the business report, were also considered in light of the circumstances, etc. of deliberations by the
Board of Directors and other bodies. With respect to the subsidiaries, each Audit & Supervisory Board Member
endeavored to facilitate a mutual understanding and exchanged information with the Directors and Audit &Supervisory Board Members, etc. of each subsidiary and received from subsidiaries reports on their respective
business as necessary. Based on the above-described methods, each Audit & Supervisory Board Member
examined the business report and annexed specifications for the business year under consideration.
In addition, each Audit & Supervisory Board Member monitored and verified whether the accounting auditor
maintained its independence and properly conducted its audit, received a report from the accounting auditor on
the status of its performance of duties, and requested explanations as necessary. Each Audit & Supervisory Board
Member was notified by the accounting auditor that it had established a “system to ensure that the performanceof the duties of the accounting auditor was properly conducted” (the matters listed in the items of Article 131 of
the Company Accounting Regulations) in accordance with the “Quality Control Standards for Audits” (BusinessAccounting Council on October 28, 2005), and requested explanations as necessary. Based on the abovedescribed methods, each Audit & Supervisory Board Member examined the non-consolidated financial
statements (balance sheet, profit and loss statement, shareholders’ equity variation statement, and schedule ofindividual notes) and the annexed specifications thereto, as well as the consolidated financial statements(consolidated balance sheet, consolidated profit and loss statement, consolidated shareholders’ equity variation
statement, and schedule of consolidated notes), for the business year under consideration.

90

[Translation for Reference Purposes Only]
2. Results of Audit(1) Results of Audit of Business Report, etc.
(i) We acknowledge that the business report and the annexed specifications thereto fairly present the status of
the Company in conformity with the applicable laws and regulations and the Articles of Incorporation of
the Company.
(ii) We acknowledge that no misconduct or material fact constituting a violation of any law or regulation or the
Articles of Incorporation of the Company was found with respect to the Directors’ performance of theirduties.
(iii) We acknowledge that the Board of Directors’ resolutions with respect to the internal control systems areappropriate. We did not find any matter to be mentioned with respect to the contents of the statement in thebusiness reports and the Directors’ performance of their duties concerning the internal control systems. In
addition, with respect to internal controls over financial reporting, at the time of preparation of this audit
report, we received a report from both the Directors, etc., and Ernst & Young ShinNihon LLC that statesthat the said controls were effective.
(iv) We did not find any matter to be mentioned with respect to the basic policies, described in the business
report, concerning control of the corporation. Undertakings, described in the business report, set forth in
Article 118, item 3, sub-item (b) of the Ordinance for Enforcement of the Companies Act of Japan are inline with the basic policies, do not impair the common interests of the Company’s shareholders, and are notdirected to the purpose of maintaining the status of the Company’s officers.
(2) Results of Audit of Non-consolidated Financial Statements and their Annexed Specifications
We acknowledge that the methods and results of audit performed by the accounting auditor, Ernst & Young
ShinNihon LLC, are appropriate.
(3) Results of Audit of Consolidated Financial Statements
We acknowledge that the methods and results of audit performed by the accounting auditor, Ernst & Young
ShinNihon LLC, are appropriate.
February 15, 2023
The Audit & Supervisory Board, INPEX Corporation
Full-time Audit & Supervisory Board Member:
Full-time Audit & Supervisory Board Member (Outside):
Full-time Audit & Supervisory Board Member (Outside):
Outside Audit & Supervisory Board Member:
Outside Audit & Supervisory Board Member:

91

Noboru Himata (Seal)
Hideyuki Toyama (Seal)
Shinya Miyake (Seal)
Mitsuru Akiyoshi (Seal)
Hiroko Kiba (Seal)[Translation for Reference Purposes Only]
Guide to the Live Stream of the General Meeting of Shareholders and Preliminary Comment Reception
Shareholders who are considering attending this General Meeting of Shareholders are requested to carefully assess
their plans in an effort to prevent the spread of COVID-19. Under such circumstances, the General Meeting of
Shareholders will be live streamed so that more shareholders can view the General Meeting of Shareholders, andwe invite you watch.
How Shareholders Can Access the Portal Site
Shareholders can access the portal site from a computer or smartphone.
https://v.sokai.jp/1605/2023/inpex/ (in Japanese only)Enter your ID (shareholder number) and shared password (inpex23). Your shareholder number is listed on the enclosed Voting
Rights Exercise Form.
Enter the nine-digit number listed in the enclosed
Voting Rights Exercise Form.

* Do not share your ID or password with a third party, publicly disclose or provide video or audio data to a third party, or reproduce
or broadcast said data.

* Example of the Voting Rights Exercise Form.

Guide to Watching the Live Stream
Date andtime of live
stream:Tuesday, March 28, 2023 at 10:00 a.m. (Japan
Time)(Access allowed 30 minutes in advance.)

Visit the shareholder portal site, andclick “Watch live.”

Guide to the Preliminary Comment Reception
Preliminary Monday, March 6, 2023 at 9:00 a.m. to Friday,
comment
March 17, 2023 at 5:00 p.m. (Japan Time)
reception
period:Visit the shareholder portal site, andclick “Make a preliminary question.”* Please wait until it goes live on Tuesday, March 28, 2023 at
10:00 a.m. (Japan Time).
Precautions

Precautions

To protect the privacy of attending shareholders, video is only
shown near the chairperson and officers.
Video may not be disseminated in some cases. In this case,notification will be provided on the shareholder portal site andour IR site.
You may experience video or audio problems depending on yourcomputer or smartphone or the Internet connection environment.
Shareholders are responsible for all communication costs inwatching the live stream. If the live stream does not start at theappointed time, click the play button.

You are only allowed to make one comment.
Please keep your comment as direct and succinct as possible.
We plan to reply to the comments of greatest interest to ourshareholders on the day of the General Meeting of Shareholders,
but we cannot guarantee that we will reply to all comments.
Please understand that we are unable to respond to individual
inquiries.
This cannot be used to provide advance notification of thequestions on the day of the General Meeting of Shareholders.
Your personal information will only be used to manage yourinquiry and will not be used for any other purpose.
We will not provide your personal information to another party
without your consent.

Inquiries

PRONEXUS Live Broadcast Call Center
This is the contact information for the live stream (and instructions on how to use it) on the day of the General
Meeting of Shareholders.
Telephone (available only in Japan): 0120-970-835(From Tuesday, March 28, 2023 at 9:00 a.m. on the day of the General Meeting of Shareholders to the end of
the meeting)92

This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between these translated documents and the Japanese originals, the original shall prevail. The
Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arisingfrom the translation.

To Those Shareholders with Voting Rights:

Disclosure on the Internet accompanying the Notice of the 17th Ordinary General Meeting of Shareholders

17th Fiscal Year (January 1, 2022 to December 31, 2022)
 Business Report
Items Related to Accounting Auditor ........................................
Systems for Ensuring Proper Operations of the Company andStatus of Operations of such Systems........................................
Basic Policy Regarding Control of the Company......................
 Consolidated Financial Statements
Consolidated Statement of Changes in Net Assets ....................
Notes to Consolidated Financial Statements .............................
 Non-Consolidated Financial Statements
Non-Consolidated Statement of Changes in Net Assets ............
Notes to Non-Consolidated Financial Statements .....................

2
3
10
12
13
29
31

INPEX CORPORATION
Pursuant to laws, regulations, and Article 27 of the Articles of Incorporation of the Company, the Company omits thedescription in the hard copy document (document stating the matters to be provided in electronic format) to bedelivered to shareholders who have requested delivery of the document.

1Business Report
Items Related to Accounting Auditor

1 Name of Accounting Auditor
Ernst & Young ShinNihon LLC
2 Amount of Remuneration for Accounting Auditor
Amount paid
Amount of remuneration, etc., for Accounting Auditor of the Company¥337 million
Total amount of money and other financial benefits paid by the Company and its¥451 million
subsidiaries
Notes: 1 Under the audit agreement between the Company and the Accounting Auditor, remuneration for audits
based on the Companies Act and remuneration for audits based on the Financial Instruments andExchange Act are not distinguished, and such amounts are effectively indistinguishable. Therefore, theamounts noted above include the total amount of remuneration.
2 The Audit & Supervisory Board has given its consent by judging it as appropriate in view of ensuring
the audit quality with respect to Article 399, Paragraph 1 of the Companies Act of Japan for the
remuneration paid to the Accounting Auditor, following the confirmation and examination of the statusof the Accounting Auditor’s performance of duties, the details of audit plan, basis of calculation for theestimated amount of remuneration and others, in light of the “Practical Guidelines for Coordination
with Accounting Auditors” published by the Japan Audit & Supervisory Board Members Association.
3 Of the Company’s significant subsidiaries, overseas subsidiaries are audited by accounting auditing
firms other than the Company’s accounting auditor.
3 Contents of Non-Audit Operations
The Company pays remuneration for services such as training related to accounting standards.
4 Policy for Determination of Dismissal or Non-Reappointment of Accounting Auditor
The Audit & Supervisory Board of the Company shall determine the dismissal of the Accounting Auditor
according to Article 340 of the Companies Act. In addition, in the event it is determined necessary, including
any situation in which the Accounting Auditor is unable to perform their duties appropriately, the Audit &Supervisory Board shall determine the content of the proposal for the dismissal or non-reappointment of the
Accounting Auditor and the Board of Directors of the Company shall submit the proposal to the General
Meeting of Shareholders.

2Systems for Ensuring Proper Operations of the Company and Status ofOperations of such Systems
Overview of Systems to Ensure that the Execution of the Duties by Directors of the Company Complies withLaws and Regulations and the Articles of Incorporation of the Company, and Other Systems for Ensuring theProper Operations of the Company and the Group, and Development and Status of Operations of such
Systems[Resolutions of the Company regarding the Development of the Systems for Ensuring Proper Operations(Internal Control Systems)]
The following is a summary of the resolutions of the Company, regarding the “Development of the Systems for
Ensuring the Proper Operations as a Stock Company (Internal Control Systems).” This summary reflects a partial
revision made by a resolution of the Board of Directors meeting held on December 26, 2022.
(1) Systems to Ensure that Directors and Employees of the Company Execute their Duties in Compliancewith Laws and Regulations and the Articles of Incorporation
To ensure that Directors and employees of the Company execute their duties in compliance with applicable laws
and regulations and the Articles of Incorporation, the Company shall develop a Sustainability Principles andBusiness Principles and establish a system to ensure complete compliance.
The Company shall establish a Compliance Committee consisting of the Director in charge of compliance, theSenior Vice Presidents of the standing organizational units, etc., to deliberate basic policies or other importantmatters related to compliance. By monitoring the implementation of such policies and ensuring thoroughdissemination through in-house training, etc., the Company ensures that its Directors and employees comply
with laws and regulations and the Articles of Incorporation in the execution of their duties. Furthermore, theCompany shall establish an internal whistle-blowing system with a department in charge and external experts(lawyers), etc. as providers of consultation services.
In order to ensure effective compliance systems and relevant internal rules, the Company shall also verify andevaluate such systems and make the necessary improvements through audits, etc., carried out by the internal
audit division, which reports directly to the President & CEO and other related in-house departments or external
experts. Based on the internal audit regulations, the internal audit division, which reports directly to the President& CEO, shall report the results of audit of the previous fiscal year and the audit plan for this fiscal year to theBoard of Directors, full-time Audit & Supervisory Board Members and the Audit & Supervisory Board.
Furthermore, the Company shall develop a system to ensure the accuracy and reliability of financial reporting,and employ such system properly while evaluating its effectiveness.
(2) Systems for the Storage and Management of Information Related to the Execution of Duties by Directorsof the Company
In accordance with applicable laws and regulations, the Articles of Incorporation and internal rules, among others,
the Directors shall develop a system for information security administration, and appropriately store and manage
documents and other information related to the execution of their duties.
(3) Rules and Other Systems for Risk Management of the Company
To manage diverse risks related to the Group’s business activities, Directors shall cooperate closely with therelated departments to identify, analyze and evaluate such risks, and manage them in accordance with internal
rules and guidelines, etc.
Furthermore, the functioning and other aspects of the risk management related to daily operations shall beverified and evaluated through audits, etc., carried out by the internal audit division, under the direct control of
the President & CEO of the Company and other related in-house departments or an external expert, andcontinually reviewed in response to changes in the business environment.

3(4) Systems to Ensure the Efficient Execution of Duties by Directors of the Company
In order to ensure that the systems to execute Directors’ duties efficiently are in place, the Directors shall manage
business operations with particular attention to the following:
1)

With regard to certain major corporate decisions, an Executive Committee meeting attended by full-time
Directors, Managing Executive Officers, etc. shall be held weekly and as necessary to ensure that the duties
are executed promptly and properly.
2) With regard to the execution of daily duties, the authority of the President & CEO shall be delegated inaccordance with the Board of Directors’ Regulations and other internal regulations, and the persons incharge at each level shall execute their duties promptly.
Furthermore, the Board of Directors shall formulate long-term management strategies and medium-term
management plans, and receive progress reports on the plans and targets.
The Company has adopted a division system and assigns Directors as a head of each division in order to achieve
efficient management of business operations and establish a responsibility structure. Each division shall
implement initiatives, which are important milestones of the business environment, while taking into account
important risks and their countermeasures, so as to realize goals in the management plan and other targets. The
Executive Committee shall receive progress reports on the plans and targets.
(5) Systems to Ensure the Proper Operations of the Group1)

Systems for Reporting the Company Matters Related to the Execution of Duties by Directors or Other
Equivalent Managerial Staff (hereinafter “Directors, etc.,”) of the Company’s Subsidiaries
In accordance with the internal rules on group management, the Company shall enter into agreements
regarding group management with its subsidiaries, under which the Company requires that importantmatters of each subsidiary shall be reported to and approved by the Company.

2)

Rules and Other Systems for Risk Management of the Company’s Subsidiaries
For risk management of the subsidiaries of the Company, in accordance with the internal rules on groupmanagement, the Company shall conduct group-wide risk management via mutual cooperation with eachsubsidiary.
Furthermore, the Company shall require its subsidiaries to cooperate in audits, etc., carried out by theinternal audit division, under the direct control of the President & CEO of the Company and other related
in-house departments or an external expert to verify and evaluate the management of risks related to thedaily operations of the subsidiaries. Based on the results of such verification and evaluation, the Company
shall have its subsidiaries conduct continuous review of their risk management in response to changes inthe business environment.

3)

Systems to Ensure the Efficient Execution of Duties by Directors, etc., of the Company’s Subsidiaries
To ensure the efficient execution of duties by Directors, etc., of the Company’s subsidiaries, long-term
management strategies and medium-term management plans shall be shared among all the Group
companies. Under the vision, the Company shall have its subsidiaries manage human resources andmonetary resources efficiently and manage business operations in accordance with the Company’s internal
rules, etc., with particular attention to the following:i) Important matters of a subsidiary of the Company shall be determined by resolution of the Board of
Directors meetings of the subsidiary or by consultation among the Directors of the subsidiary.
ii) Authority for the execution of daily duties by the Company’s subsidiaries shall be delegated based on
regulations stipulating the administrative authority of subsidiaries, and the persons in charge at eachlevel shall execute their duties promptly.

4)

Systems to Ensure that Directors, etc., and Employees of the Company’s Subsidiaries Execute their Duties
in Compliance with Laws and Regulations and the Articles of Incorporation
The Company shall establish a compliance system (including an internal whistle-blowing system) that is
applied to the entire Group, and this system shall be widely deployed and disseminated to all directors,
auditors and other equivalent managerial staff, as well as to employees of the Company’s subsidiaries.

4In cooperation with its subsidiaries, the Company shall conduct audits, etc., of the subsidiaries, carried out
by the internal audit division, under the direct control of the President & CEO of the Company and by otherrelated in-house departments or an external expert.
The Company shall strive to establish a system to ensure that Directors, etc., and employees of thesubsidiaries execute their duties in compliance with laws and regulations and the Articles of Incorporation,and enter into agreements regarding group management with its subsidiaries in accordance with the internal
rules on group management.
(6) Matters Regarding Employees Who Assist the Audit & Supervisory Board Members of the Company with
Auditing Duties in Cases Where the Audit & Supervisory Board Member of the Company Requests theAssignment of Such Employees, Matters Regarding the Independence of Such Employees from Directorsof the Company and Matters Related to Ensure the Effectiveness of Instructions Given to Such Employees
The Company has set up the Audit & Supervisory Board Members’ Office as an independent organization fromthe business execution departments and shall deploy dedicated employees to assist the Audit & Supervisory
Board Members with auditing duties in order to enhance the effectiveness of audits by Audit & Supervisory
Board Members.
The employees who assist the Audit & Supervisory Board Members’ duties shall follow instructions from the
Audit & Supervisory Board Members. Performance appraisals, personnel changes and disciplinary action against
such employees assisting the Audit & Supervisory Board Members shall require approval of the full-time Audit& Supervisory Board Members beforehand.
(7) Systems for Reporting to the Audit & Supervisory Board Members of the Company
The Directors and employees of the Company, directors, auditors or other equivalent managerial staff, as wellas employees of the Company’s subsidiaries, or persons who receive a report from them, shall report and provide
information to the Audit & Supervisory Board Members of the Company as to the matters provided by laws andregulations, matters that might have a significant impact on the Company and its Group companies, and othermatters that an Audit & Supervisory Board Member of the Company has determined to be reported to execute
his/her duties.
Also, the Audit & Supervisory Board Members of the Company shall always be able to obtain businessinformation whenever needed by attending the Board of Directors’ meetings and other important meetings, orby receiving internal approval documents, etc.
Regarding the internal whistle-blowing system of the Group, the Director in charge of compliance shall reportto the Company’s full-time Audit & Supervisory Board Members swiftly as to the content internally reported byGroup company directors, auditors, other equivalent managerial staff, employees, and former employees within
one year of leaving employment.
(8) Systems to Ensure that Reporters in the Preceding Section Will Not Receive Detrimental Treatment on
the Grounds of the Whistle-Blowing
The Company shall prohibit detrimental treatment against directors, auditors, or other equivalent managerial
staff, and employees of the Group companies who reported to the Company’s Audit & Supervisory Board
Members. And this position shall be disseminated throughout the Group.
Regarding the internal whistle-blowing system of the Group, in case detrimental treatment against a whistleblower is recognized, a disciplinary action will be taken against the person who treated the reporter in such a
way and the head of the department to which the person belongs, pursuant to Rules of Employment, etc.
(9) Matters Related to Policies Concerning the Treatment of Expenses or Liabilities Incurred by the
Execution of Duties by the Company’s Audit & Supervisory Board Members such as Procedures for
Prepayments or the Redemption of Such Expenses
In case the Company’s Audit & Supervisory Board Members request prepayment or redemption of expenses fortheir execution of duties, etc., based on Article 388 of the Companies Act, the Company shall swiftly process
such expenses or liabilities except in the case such expenses or liabilities are proven to be unnecessary for the
execution of duties by such Auditors.
5(10) Other Systems to Ensure Effective Audits by the Audit & Supervisory Board Members of the Company
The Representative Directors of the Company shall meet regularly with the Audit & Supervisory Board Membersof the Company, provide information as necessary and strive to communicate with them. At the same time, theCompany shall secure opportunities for Audit & Supervisory Board Members and Outside Directors to meet
regularly, and strive to enhance their mutual cooperation and information sharing.
The Company shall also improve the effectiveness of audits by establishing a system, etc., whereby the Audit &Supervisory Board Members can cooperate with the internal audit division and receive reports regularly.
Furthermore, to conduct audits by the Audit & Supervisory Board Members, the Company shall ensure close
cooperation between the Audit & Supervisory Board Members and external experts such as lawyers, certified
public accountants and certified tax accountants, among others.

6[Outline of the Status of Operations of the Systems for Ensuring the Proper Operations of the Company(Internal Control System)]
While the Company is operating its internal control system appropriately based on the contents decided on the“Development of the Systems for Ensuring the Proper Operations as a Stock Company (Internal Control
Systems),” the following are the outline of its major operations of such systems during this fiscal year:<Compliance system>
The Company has established the Code of Conduct with which all officers and employees shall comply. Thisobliges them to respect social norms and act with high ethical standards, not to mention comply with laws andregulations. Also, the Company has held its Compliance Committee periodically and when necessary to confirm
the status of implementation of the compliance and hence report to the Board of Directors.
In line with the action plan resolved by the Compliance Committee, and in addition to the dissemination ofcompliance-related information using various internal tools and the execution of regular internal compliancetraining, as a priority activity for this fiscal year, the Company conducted an awareness survey to determine thedegree of compliance understanding and observance among officers and employees, and carried out e-Learning
training related to prevention of harassment, bribery, and corruption. In addition, the Company has worked onenhancing and strengthening compliance activities among all personnel including holding meetings semiannually of compliance managers in place in each Unit and managers of departments supervising compliance.
In order to further enhance the compliance system of the Group as it develops its business globally, the Company
has implemented a global multilingual whistle-blowing system that enables its employees in Japan and overseas
to report bribery and corruption, competition law violations, and improper accounting practices, three areas
which pose particularly high management risks. We have also announced the “INPEX Group Global AntiBribery and Anti-Corruption (ABC) Policy” which comprehensively specifies the Group’s stance with regard to
the prevention of bribery and corruption.
To specify its stance towards the issue of respecting human rights, the Group formulated and announced the“Human Rights Policy” based on the United Nations’ “the UN Guiding Principles on Business and Human
Rights.” Furthermore, the Group has published its “Modern Slavery Act Statement” as disclosed on its website
and the online registration website of the UK government pursuant to the UK Modern Slavery Act 2015 enforcedin October 2015, in order to clarify its initiatives against human rights violations such as slavery and humantrafficking in the business and supply chain of the Group as well as the risks thereof. Beginning from fiscal year
2021, we have also published a statement related to our initiatives for preventing human rights violations by theGroup companies in Australia, based on the Australian Modern Slavery Act 2018.
In fiscal year 2022, we established the Supplier Code of Conduct to reinforce ESG initiatives including
compliance matters such as human rights, fair business activities, and confidentiality, throughout the supply
chain. Going forward, we will require contracting suppliers to observe this code by including it in the Company’s
standard contract.
As the Group develops its business globally, the Company formulated and announced its “Policy on Tax Affairs,”
which specifies the Group’s basic policy on taxation compliance, and is engaged in strengthening its tax
governance system to appropriately handle taxation concerning cross-border transactions.
The Company has established its whistle-blowing system, and an internal department in charge of compliance,outside experts (lawyers), etc. were designated as contact points. There were however no whistle-blowing cases
related to material breach of laws and regulations, etc. during this fiscal year.
In addition, pursuant to a revision of the Whistleblower Protection Act which took effect in this fiscal year, wehave enacted the necessary legal measures in our internal whistle-blowing system.
<Risk management system>
To respond to various risks related to business projects, first, the New Ventures & Global Exploration Division
carries out a centralized analysis/examination on whether to adopt or reject new projects associated with oil andnatural gas upstream business. In addition to operating the “INPEX Value Assurance System (IVAS) Committee”
as a structure for conducting cross-sectional technical evaluation, etc. at each phase of exploration, evaluationand development, the Company regularly reviews the risks of each project and their countermeasures, and reports
are made to the Board of Directors regarding major projects.
In addition, the Renewable Energy & New Business Division and the Hydrogen & CCUS Development Division
are responsible for the overall management of the renewable energy and hydrogen and CCUS businesses,
7respectively. The IVAS Committee and external experts conduct verifications, and important projects arereported to the Board of Directors.
The Company has set guidelines for country risk management in countries and territories where projects areplanned, which include the establishment of a maximum target amount for accumulated investment balance inhigh-risk countries.
Furthermore, the Company has been conducting financial risk control by identifying risks of fluctuation ofcurrency exchange rates, interest rates, crude oil/natural gas prices and securities prices, and establishingcorresponding managing/hedging methods.
With regard to health, safety, and environment (HSE) risks, in order to promote the Company’s continuous
improvement activities for health and safety, process safety and environmental safeguarding based on the HSE
Risk Management Procedures established under the HSE Management System, each business location identifies,
analyzes and evaluates HSE risks, as well as establishes and implements risk countermeasures. In addition, thestatus of risk management is to be reported to the head office for supervising HSE risks, and the head officeconfirms the report. With regard to security risks, the Company is promoting company-wide management basedon relevant procedures and guidelines. In addition, for HSE management of non-operator projects, the Company
promotes HSE involvement in accordance with the risks of each project.
On the other hand, the Company has formulated and is maintaining an emergency/crisis response plan in orderto enhance capabilities to cope with emergencies such as major accidents and disasters, etc. and is positively
promoting risk management which includes conducting emergency response training regularly even in times ofsafety. The Company has drawn up a business continuity plan (BCP) to keep critical operations from being
suspended. When the coronavirus disease (COVID-19) pandemic began in 2020, we activated our BCP andcarried out the necessary measures, including preventing the spread of infections and enabling employees towork from home. We also established the Corporate Crisis Management Team, and worked to clearly identify
conditions throughout the Company including at overseas business sites.
Furthermore, in order to establish a structure that can provide appropriate legal advice regarding important
contracts, lawsuits, etc. to business divisions and management team, and further enhance the legal support
function for domestic and overseas business, the Company has made the legal unit into an independent
organization, and legal risk management has been strengthened.
Also, the Company convenes an information security committee regularly and as necessary in order toimplement organizational and systematical information security measures in addition to the education andtraining regarding information leakage prevention.
<Systems to ensure the efficient performance of duties>
In May 2018, we formulated “Vision 2040” and the “Medium term Business Plan 2018-2022,” and in January
2021 we announced the “Business Development Strategy - Towards a Net Zero Carbon Society by 2050”(hereinafter, “Business Development Strategy”), which presents the Company business strategy for achieving
its climate change response goals and its efforts to realize a net zero carbon society. We announced our “Longterm Strategy and Medium-term Business Plan (INPEX Vision @2022)” (hereinafter “INPEX Vision @2022”)
in February 2022. The current INPEX Vision @2022 indicates the Company’s long-term strategy for 2030 and
2050 based on the above changes in the management environment, and also establishes a three-year Mediumterm Business Plan from 2022 to 2024 including specific initiatives and targets. Based on the company-wide
policy of initiatives, which is the business execution departments’ business operation policy for realizing goals
in the long-term strategy and medium-term business plan, company-wide plans and targets for fiscal year 2021
were formulated, the status of progress was reflected upon at the interim and the end of the fiscal year, and thecorresponding evaluation results were reported to the Board of Directors.
In line with INPEX Vision @2022, we partially revised our “Corporate Position on Climate Change” in March
2022. In the “INPEX Initiatives,” which presents specifically the promotion status of our response to climatechange based on “Corporate Position on Climate Change,” we also revised the operating results since theprevious revision (February 2021 to March 2022) and the information about initiatives currently in progress.
Progress of “INPEX Initiatives” is, in principle, to be reported to the Board of Directors once every year.
<Systems for corporate management of the Group companies>
Based on the Group’s corporate management rule and the Group’s agreements with regard to corporate
management, the Company urges reporting among Group companies or approval by the Company about
important matters. Also, the Audit Unit, the Company’s internal audit division, conducts audits of subsidiaries
8based on the annual auditing plan, and reports the results of the audits to the Company’s Board of Directors,
full-time Audit & Supervisory Board Members and the Audit & Supervisory Board.
With regard to the operation of the Group companies, we are utilizing a concurrent management system withsubsidiaries involved in overseas projects. At the same time, for financing, we are conducting efficient business
operations such as by enhancing financial efficiency through a unified management system of the Group’s assets
by means of the Cash Management System, and by centralized management of the INPEX Group’s
intercompany finance operations through the Company’s financial subsidiary established in the Republic ofSingapore.
The Company’s whistle-blowing system is designed to be applied to all Group companies. The Company
provides thorough instructions, through the Company’s and each subsidiary’s trainings and communication
activities, to prohibit unfavorable treatment of whistle-blowers.
<Auditing system for ensuring effectiveness of auditing by Audit & Supervisory Board Members>
Audit & Supervisory Board Members collect required information and exchange opinions, for the purpose of
improving effectiveness of their auditing, through their attendance at important meetings such as Board of
Directors meetings and other management meetings, conducting hearings from each division, and throughmeetings with Directors including Representative Directors. Also, Audit & Supervisory Board Members
participate in the exchange of opinions during the formulation of the annual auditing plan by the Audit Unit,
which works as the Company’s internal audit division, receive individual reports on the results of audits
whenever they are made, and receive necessary reports including reviews of quarterly financial results from the
Accounting Auditor, thus keeping close contact with the internal auditing division and the Accounting Auditor.
Furthermore, reports from the Director in charge of compliance about the contents and handling of whistleblowing are swiftly accepted by full-time Audit & Supervisory Board Members.
The Company established “Audit & Supervisory Board Members’ Office” as an organization having an
employee, independent of the Company’s executive team, dedicated to assisting operations by Audit &Supervisory Board Members.

9Basic Policy Regarding Control of the Company(1) Basic Policy Regarding Management
The INPEX Group will proactively engage in energy structure reforms towards the realization of a net zero carbon
society by 2050, while responding to the growing energy demands of Japan and the world and fulfilling its
responsibility for the development and stable supply of energy over the long term. Specifically, the Company willcontinue to position oil and natural gas business as a core business and will work to fulfill its two social
responsibilities of providing a stable supply of energy and responding to climate change by strengthening its
business and making it cleaner. In addition, the Company will set climate change response goals towards a net
zero carbon society and actively promote five net-zero businesses including: hydrogen business; reducing CO2
emissions from operations in oil and natural gas business (CCUS, etc.); enhancing and emphasizing renewableenergy initiatives; promoting carbon recycling and cultivating new business opportunities; and promoting forest
conservation.
(2) Efforts for Effective Utilization of Resources and for Preventing Inappropriate Control
While acknowledging the importance of capital efficiency and sound finances, and aiming to expand its operatingbase in order to secure a stable and efficient supply of oil and natural gas resources by utilizing its solid and stablefinancial base, the INPEX Group will invest to grow its exploration and development activities as well as maintainand expand its supply infrastructure, etc. The Group will aim to continuously increase its corporate value by
generating new cash and increasing shareholder value by allocating the cash generated by projects in a wellbalanced manner toward both growth investments and shareholder returns.
Based on the policy under (1) above, the Company has issued a Class A stock to the Minister of Economy, Tradeand Industry to eliminate the possibility of speculative takeovers or management control by foreign capital,
resulting in inappropriate management inconsistent with the Company’s role to provide a stable supply of energy
to Japan in an efficient manner as a core company, or causing any other adverse effects.
To make decisions on i) the appointment or removal of Directors; ii) the disposition of all or a portion of material
assets; iii) amendments to the Articles of Incorporation relating to the Company’s business objectives and granting
voting rights to any shares other than the common stock of the Company (excluding voting rights in the meetingsof the holder of the Class A stock, which are already granted to the Class A stock); iv) business integration; v)
capital reduction and vi) company dissolution, a resolution of a meeting of the holder of the Class A stock(hereinafter “a general meeting of Class A stock shareholders”) is required in addition to resolutions of theshareholders’ meeting or the Board of Directors of the Company. However, concerning i) the appointment or
removal of Directors and iv) business integration, resolution of a general meeting of Class A stock shareholders
is required only when certain conditions under the Articles of Incorporation are met. Concerning the exercise of
voting rights at a general meeting of Class A stock shareholders, the Class A stock shareholder can exercise his/hervoting rights in accordance with the guidelines set forth in a Ministry of Economy, Trade and Industry Notice (No.
54, 2022).
According to the guidelines, a resolution regarding the aforementioned items i) and iv) shall be vetoed only “whenit is judged there is a high probability that the Company will be managed inconsistent with its role to provide astable supply of energy to Japan in an efficient manner as a core company,” and a resolution to change the Articles
of Incorporation related to granting voting rights to any shares other than the common stock of the Company(excluding voting rights in the meetings of the holder of the Class A stock which is already granted to the ClassA stock) in the aforementioned item iii) shall be vetoed only “when there is a possibility that it may have an effecton the exercise of the voting rights of the Class A stock” and the aforementioned item ii) and amendment to the
Articles of Incorporation related to the Company’s business objectives in the aforementioned item iii), andresolutions related to items v) and vi) shall be vetoed only “when it is judged there is a high probability that it
may adversely affect its role to provide a stable supply of energy to Japan in an efficient manner as a core company.”
In addition, the Articles of Incorporation of the Company’s subsidiaries stipulate that, upon disposing material
assets, a resolution of a general meeting of shareholders of the subsidiary is required when it constitutes a“disposition of all or a portion of material assets” in the aforementioned item ii). In this case, a resolution of themeeting of the holders of the Class A stock is required in addition to a resolution of the Board of Directors of theCompany. The Company’s Board of Directors does not have any power over the exercise of the veto right throughthe exercise of the voting rights of Class A stock by Class A stock shareholders. Therefore, Class A stock does nothave the purpose of maintaining the position of the executive officers of the Company.

10(3) Decisions of Board of Directors’ Meeting for the Efforts in the Above-Mentioned (2)The efforts set forth in the above-mentioned (2), which aim to provide a stable supply of energy to Japan in an
efficient manner and to improve the Company’s corporate value continuously, are in line with the policy set forthin the above-mentioned (1).
Given the limited scope of the veto right of the Class A stock in the above-mentioned (2), and because the voting
rights shall be exercised in accordance with the guidelines for the exercise of voting rights by the Minister of
Economy, Trade and Industry, which are set forth in a Ministry of Economy, Trade and Industry Notice (No. 54,2022), this measure is designed to be highly transparent to avoid unreasonably impeding the efficiency andflexibility of the Company’s management to minimize the impact thereof. For these reasons, the Company
believes that this measure is in line with the policy set forth in the above-mentioned (1) and does not impair thecommon interests of the Company’s shareholders.

11

Consolidated Financial Statements
Consolidated Statement of Changes in Net Assets(For the year ended December 31, 2022)
Unit: millions of yen (Amounts truncated to millions of yen)
Shareholders’ equity

Balance at the beginning of the period

Common stock

Capital surplus

290,809681,398

Retained earnings

Treasury stock

Total
shareholders’equity(75,425)

2,680,624

1,783,841

Changes during the period
Change in ownership interest ofparent arising from transactions with
non-controlling shareholders

1,984

1,984

Cash dividends paid

(80,426)(80,426)

Net income attributable toowners of parent

438,276438,276

Purchase of treasury stock(121,191)(121,191)

Disposal of treasury stock10

10(75,248)

75,248–Cancellation of treasury stock
Net changes in items other thanthose in shareholders’ equity
Total changes during the period

–

1,984

282,601(45,932)

238,652

Balance at the end of the period

290,809683,382

2,066,443(121,358)

2,919,277

Noncontrollinginterests

Total net
assets222,344

Accumulated other comprehensive income

Balance at the beginning of the period

Unrealized
holding gain
(loss) on
securities

Deferred gain
(loss) on
hedgesTranslation
adjustments

Total
accumulated
othercomprehensive
income2,640(16,171)456,972

443,441

3,346,409

Changes during the period
Change in ownership interest ofparent arising from transactions with
non-controlling shareholders

1,984

Cash dividends paid

(80,426)

Net income attributable toowners of parent

438,276

Purchase of treasury stock(121,191)

Disposal of treasury stock

10

Cancellation of treasury stock–

Net changes in items other thanthose in shareholders’ equity

1,507

48,592364,025

414,125

39,173453,299

Total changes during the period

1,507

48,592364,025

414,125

39,173691,952

Balance at the end of the period

4,147

32,421820,997

857,566

261,517

4,038,361

12

Notes to Consolidated Financial Statements[Basis of Presenting Consolidated Financial Statements]
1. Scope of consolidation(1) Number of consolidated subsidiaries and names of major consolidated subsidiaries
Number of consolidated subsidiaries: 66
Names of major subsidiaries:
Japan Oil Development Co., Ltd., INPEX Alpha, Ltd., INPEX Sahul, Ltd., INPEX Southwest Caspian Sea,
Ltd., JODCO Onshore Limited, JODCO Lower Zakum Limited, INPEX North Caspian Sea, Ltd., INPEX
Browse, Ltd., INPEX Holdings Australia Pty Ltd, INPEX Ichthys Pty Ltd, INPEX Oil & Gas Australia Pty
Ltd, INPEX Eagle Ford, LLC, INPEX Masela, Ltd., INPEX FINANCIAL SERVICES SINGAPORE PTE.
LTD., INPEX Norway Co., Ltd., and INPEX Idemitsu Norge AS
From the year ended December 31, 2022, nine companies were newly included in the scope of consolidation,and one company was excluded from the scope of consolidation. The major breakdown is as follows:(a) Companies newly included in the scope of consolidation due to new acquisition of shares in the year
ended December 31, 2022
INPEX Norway Co., Ltd.
INPEX Idemitsu Norge AS(b) Company excluded from the scope of consolidation due to the completion of liquidation in the year
ended December 31, 2022
INPEX Mozambique, Ltd.
(2) 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.
(3) 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 theshareholders 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(1) Number of non-consolidated subsidiaries and affiliates accounted for by the equity method and names of major
non-consolidated subsidiaries and affiliates accounted for by the equity method
Number of non-consolidated subsidiaries accounted for by the equity method: None
Number of affiliates accounted for by the equity method: 22
Names of major non-consolidated subsidiaries and affiliates:
MI Berau B.V., Ichthys LNG Pty Ltd
From the year ended December 31, 2022, seven companies were included in the scope of affiliates accounted
for by the equity method, and five companies were excluded from the scope. The major breakdown is asfollows:
13

(a) Companies newly included in the scope of affiliates accounted for by the equity method due to theacquisition of shares in the year ended December 31, 2022
Clusius C.V.
Blauwwind II C.V.
PT Supreme Energy Muara LabohPT Supreme Energy Rantau Dedap
PT Supreme Energy Rajabasa(b) Companies excluded from the scope of affiliates accounted for by the equity method due to thecompletion of liquidation in the year ended December 31, 2022
BP-Japan Oil Development Company Ltd
Japan Carabobo, Ltd.
Greenland Petroleum Exploration Co., Ltd.
(c) Companies excluded from the scope of affiliates accounted for by the equity method due to thecompletion of sales procedures for shares in the year ended December 31, 2022
Tokyo Gas Energy Co., Ltd.
Angola Block 14 B.V.
(2) Names of non-consolidated subsidiaries and affiliates not accounted for by the equity method
Names of major non-consolidated subsidiaries and affiliates:
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.
3. Fiscal year-ends of consolidated subsidiaries
The fiscal year-ends of consolidated subsidiaries are now the same as the consolidated fiscal year-end.
4. Accounting policies(1) Valuation method for significant assets(a) Securities
Other securities
Securities other than shares, etc. without a market price
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 the moving-average method.
Shares, etc. without a market price
Other securities without a determinable market value are stated at cost determined by the movingaverage 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 thelower of cost or market)
14

Domestic inventories
Carried mainly at cost, determined by the moving-average method (balance sheet value is carried at thelower of cost or market)(2) Depreciation method of significant depreciable assets(a) Tangible fixed assets (except leased assets)
Depreciation of overseas 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 by the straight-line method 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.
(3) Basis for significant allowances(a) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at an amount determined based on the historical experienceof bad debt with respect to ordinary receivables, plus an estimate of uncollectible amounts determined byreference to specific doubtful receivables from customers experiencing financial difficulties.
(b) Allowance for recoverable accounts under production sharing
Allowance for recoverable accounts under production sharing is provided for probable losses on specificinvestments 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 bonuses
Provision for bonuses to employees are provided based on expected payment amounts.
(e) Provision for bonuses to officers
Provision for bonuses to officers are provided based on expected payment amounts.
(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.

15

(g) Provision for exploration projects
Provision for exploration projects is provided for future expenses of consolidated subsidiaries at the
exploration stage based on a schedule of investments in exploration.
(h) Provision for stocks payment
Provision for stocks payment is provided to prepare for payments of stock benefits to directors and other
under the share delivery rule. The amount is based on the expected stock benefit payable.
(i) Provision for special repair and maintenance
Provision for special repair and maintenance are provided for planned major repair and maintenanceactivities on tanks in certain subsidiaries at the amounts accumulated through the next activity.
(4) Accounting for retirement benefitsi) Method of attributing expected retirement benefits to proper periods
When calculating retirement benefit obligations, the benefit formula method is used for attributing expected
retirement benefits to periods through December 31, 2022. 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 for those subsidiaries.
ii) Method of recognizing for actuarial differences
Actuarial gains and losses are charged or credited to income as incurred.
(5) Basis for significant revenues and expenses
The content of principal performance obligations in primary businesses regarding revenue from contracts
with customers and the normal timing when those obligations are satisfied (normal timing when revenue isrecognized) are as follows:i) Revenue from crude oil and natural gas business
The Group conducts exploration, development, production and marketing of crude oil and natural gas(including LPG; the same applies hereinafter) in the five reportable segments provided in the segment
information: “Japan,” “Asia & Oceania,” “Eurasia,” “Middle East & Africa” and “Americas.”
For sales of these products, it is concluded that the legal ownership rights and physical rights of possession,as well as material risks and economic value associated with ownership of the products, are transferred tothe customer, and the Company obtains the right to receive the price for the products from the customer,
primarily at the time when control of the products is transferred to the customer, namely in the case of
crude oil and natural gas the time of delivery of the products to the customer or the time when control istransferred to the customer based on trade terms prescribed in Incoterms or other materials. Therefore,
revenue is recognized at this time. Revenue is recognized based on the transaction price prescribed in thecontract with the customer. Because the transaction price is received within one year following delivery of
the products, it does not contain significant financing components.
In revenue from production of crude oil and natural gas, for which the Group shares participating interest
with other companies, there are cases when the quantity actually delivered does not match the quantity
which corresponds to the participating interest held by the Group due to circumstances of vessel
assignments or other matters. In such cases, the Group recognizes revenue based on the quantity that was
actually delivered, and any significant difference between the quantity actually delivered and the quantity
which corresponds to the participating interest held by the Group is adjusted with the other company thatshares participating interest by means of the actual crude oil and natural gas that is delivered in or after thefollowing fiscal year. In the event of delivery that exceeds the participating interest held by the Group, thecost of sales for the quantity that is above the quantity equivalent to the participating interest is also
included in the consolidated fiscal year when revenue was recognized, and at the same time liabilities arerecorded in regards to the other company which shares participating interest. In the event of delivery thatis less than the participating interest held by the Group, the sales price for the quantity that is below thequantity equivalent to the participating interest is deferred to the consolidated fiscal year when delivery is
actually carried out, and at the same time assets are recorded in regards to the other company which sharesparticipating interest.
16ii) Revenue from other finished goods
In addition to revenue listed in i), the Group also engages in sales of petroleum products and other products,
primarily at its business sites in Japan.
For sales of these petroleum products and other products, it is concluded that the legal ownership rights,
physical rights of possession, and material risks and economic value associated with ownership of the
products, are transferred to the customer, and the Company obtains the right to receive the price for the
products from the customer, primarily at the time when control of the products is transferred to the customer,
namely the time of delivery of the products to the customer. Therefore, revenue is recognized at this time.
Revenue is recognized based on the transaction price prescribed in the contract with the customer. For
exchange transactions involving products of the same nature and value between entities in the same line ofbusiness, revenue is recognized as a net amount. As with light oil delivery taxes, for indirect taxes which
are collected from the customer included in the sales price and are paid to the national, prefectural, or othergovernment, revenue is recognized at an amount excluding indirect taxes (as an amount which is collected
for third parties) from the amount that is received from the customer. At the same time, as with gasoline
tax, the amounts of taxes which are levied at a step at or before the sale, and for which we bear the obligation
for tax payment, are included in the net sales. For petroleum products and other products, because thetransaction price is received within one year following delivery of the products, it does not containsignificant financing components.
(6) Other basis of presenting consolidated financial statements(a) 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 toincome.
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 non-controlling interests.
(b) Accounting for major hedge transactionsi) Hedge accounting
The Company applies the deferred hedge accounting.
ii) Hedging instruments and hedged items(Currency related)
Hedging instruments:
Hedged items:

Interest rate and currency swap transactions, and foreign exchange forwards
Liabilities denominated in Japanese yen, forecasted transactions
denominated in foreign currency, and interests in foreign subsidiaries(Commodity related)
Hedging instruments:
Hedged items:

Commodity swap transactions and commodity option transactions
Sales proceeds from commoditiesiii) Hedging policy
Derivative transactions are limited to the scope of actual demand, and the Company does not engage in
speculative derivative transactions.
iv) Hedge effectiveness assessment method
The Company performs hedge effectiveness assessment by verifying the relationship between thehedging instruments and the hedged items.
(c) Amortization of goodwill
Goodwill is amortized over an effective period of not more than 20 years by means of the straight-line
method.
17

(d) Applied principles and procedures of accounting when there are no specific provisions involved such asaccounting standards(Recoverable accounts under production sharing)
Cash investments made by the Company during exploration, development and production phases under aproduction 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 andnatural 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.
(Accounting for concession agreements)
The Company mainly applies the accounting that recognizes an amount equivalent to the assets, liabilities,
income and expenses of the Group’s share.
[Changes in Accounting Policies](Application of “Accounting Standard for Revenue Recognition” and others)
Effective from the beginning of the year ended December 31, 2022, the Group applied “Accounting Standard for
Revenue Recognition” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 29, March 31, 2020,
hereinafter referred to as “Revenue Recognition Accounting Standard”) and others. Under the Revenue
Recognition Accounting Standard and others, revenue is recognized when the control of the promised goods orservices is transferred to the customer at the amount expected to be received in exchange for the goods or services.
The main changes resulting from the application of the Revenue Recognition Accounting Standard and others are
as follows:
1. Exchange transactions
For exchange transactions involving petroleum products of the same nature and value between entities in the sameline of business, the Group has changed the practice to recognize revenue based on a net amount.
2. Light oil delivery taxes
For light oil delivery taxes which fall under the amount collected for third parties, the Group changed the practice
to recognize revenue at an amount excluding light oil delivery taxes from consideration for transactions.
In accordance with the transitional treatment provided in the provisory clause of paragraph 84 of the Revenue
Recognition Accounting Standard, the cumulative effect at the end of the previous fiscal year from retrospective
application of the Revenue Recognition Accounting Standard is treated as adjustment to retained earnings at the
beginning of the year ended December 31, 2022, and the new accounting policy is applied from the adjusted
beginning balance of retained earnings.
As a result, consolidated net sales and cost of sales for the fiscal year ended December 31, 2022 decreased by¥1,657 million respectively, and there was no effect on operating income, ordinary income, and income before
income taxes. In addition, there was also no effect on the beginning balance of retained earnings and per share
information.
Due to the application of Revenue Recognition Accounting Standard and others, “Accounts receivable-trade”
under current assets of the consolidated balance sheet as of December 31, 2021 has been included in “Accounts
receivable-trade and contract assets” under current assets from the consolidated balance sheet as of December 31,
2022.
(Application of “Accounting Standard for Fair Value Measurement” and others)
Effective from the beginning of the fiscal year ended December 31, 2022, the Group applied “AccountingStandard for Fair Value Measurement” (ASBJ Statement No.30, July 4, 2019, hereinafter referred to as “Fair
Value Measurement Accounting Standard”) and others. In accordance with the transitional treatment provided forin paragraph 19 of the Fair Value Measurement Accounting Standard and paragraph 44-2 of “Accounting Standard
for Financial Instruments” (ASBJ Statement No.10, July 4, 2019), the Group applied prospectively a new
accounting policy prescribed by the Fair Value Measurement Accounting Standard and others. This application
has no effect on the consolidated financial statements.
It was decided to add notes concerning financial instruments categorized by fair value hierarchy to [Notes toFinancial Instruments].

18

[Change in the Presentation](Consolidated Statement of Income)“Loss on disposal of fixed assets” previously presented separately in other expenses, is included in “Other” since
it has become less significant.
[Notes to Accounting Estimates]
Evaluation of fixed assets (Ichthys LNG Project and Prelude FLNG Project)(1) Amounts recorded in the consolidated financial statements for this fiscal yeari) Ichthys LNG Project
Tangible fixed assets
Investment securities¥1,624,070 million¥472,458 million

Note: A balance of ¥472,458 million in share of profit of associates for Ichthys LNG Pty Ltd, for which theGroup holds 66.245% of interests is included in the ¥745,365 million in investment securities in the
consolidated balance sheet for the year ended December 31, 2022. The major assets held by Ichthys
LNG Pty Ltd are the fixed assets regarding to the Ichthys LNG Project, and the balance of tangible
fixed assets for Ichthys LNG Pty Ltd as of December 31, 2022 (amount obtained by multiplying by theGroup’s share) is ¥2,745,044 million.
ii) Prelude FLNG Project
Tangible fixed assets
Intangible assets¥212,146 million¥60,090 million(2) Information on the content of significant accounting estimates for identified itemsi) Calculation method of the amountThe Company groups mining area and other assets as a basic unit that generates cash inflows independentlyof other groups of assets. If any indication that an asset may be impaired exists, the Group shall estimate
the future cash flows, and if the recoverable amount is lower than the carrying amount, the impairment loss
is recognized.
The Company has deemed that, in the year ended December 31, 2022, there is no indication of impairment
for fixed assets related to the Ichthys LNG Project and the Prelude FLNG Project as a result of thedetermination of indications of impairment that took into consideration the status of project operation,
which includes future crude oil prices and reserves, and operating expenses and development expenses.
ii) Major assumptions used for significant accounting estimates
Reserves, future sales price of crude oil and natural gas, exchange rates, operating expenses, development
expenses and discount rate were used as major assumptions for the determination of indications of
impairment of fixed assets.
These estimates and assumptions are based on the best judgements made by the management taking into
account various factors such as the impact of the spread of COVID-19, the Russia-Ukraine situation, andthe transition to a net zero-carbon society as a means of addressing the climate change, that were consideredreasonable at the end of this fiscal year.
iii) Effect to consolidated financial statements for the next fiscal year
If it is necessary to review major assumptions due to changes in future economic conditions, impairment
loss on fixed assets may arise in the consolidated financial statements from the following fiscal year onward.

19

[Additional Information](Modification loss on financial assets)
In accordance with International Financial Reporting Standards (IFRS) 9 “Financial Instruments” implemented toforeign consolidated subsidiaries, the loss was recognized due to modification of financial assets that do not result inderecognition.
(Stock-based remuneration system for directors)
Beginning from 2018, the Company introduced a stock-based compensation system for Directors (excluding Outside
Directors) and Executive Officers (excluding non-residents in Japan) (hereafter collectively referred to as “Directors,etc.”). In addition, a resolution was adopted for the partial revision and continuation of this system at the ordinary
general meeting of shareholders held in March 2022 in order to clarify the linkage between the Company’s mediumto long-term management strategies and the compensation system for Directors, etc., to further enhance the awarenessof Directors, etc. to contribute to increasing corporate value and the motivation of Directors, etc. to contribute tomaximizing shareholder value, as well as to promote initiatives to realize a sustainable society. This system utilizes
a structure called “the Board Incentive Plan Trust.”(1) Outline of the System“The Board Incentive Plan Trust” is a system under which points are granted to the Directors, etc. according
to their positions, performance, and other factors, and shares of the Company acquired by the trust and an
amount of money equivalent to the proceeds from the disposal of shares of the Company are delivered andprovided to the Directors, etc. in general at the time of their retirement.
The trust period under this system was planned to be from August 2018 through August 2023, however it has
been extended until May 2025 due to changes in the trust contract occurring in May 2022.
(2) Shares of the Company that remain in the trust
Shares of the Company that remain in the trust are recorded as treasury stock in the net asset with the carrying
value of the trust (excluding incidental expenses). The carrying value and numbers of the treasury stock as ofDecember 31, 2022 are ¥1,358 million and 910,363 shares, respectively.

20

[Notes to Consolidated Balance Sheet]
1. Assets provided as collateral are as follows:
Millions of yen(Collateralized assets)
Cash and deposits
Accounts receivable-trade and contract assets
Inventories
Wells
Machinery, equipment and vehicles
Land
Construction in progress
Investment securities
Long-term loans receivable
Other
Total

41,907
38,57821,321
244,818
1,222,147
177
135,369
510,542
1,101,754
25,406
3,342,024

The above is mainly related to the Ichthys LNG Project Finance, and includes others that are pledged as collateralfor liabilities of affiliates.
2. Accumulated depreciation
Accumulated depreciation of tangible fixed assets is ¥1,538,269 million.
3. Contingent liabilities
The Company is contingently liable as guarantors of indebtedness of the following companies:
Millions of yen
77,712Ichthys LNG Pty Ltd
33,611
Tangguh Trustee*
1,008
Clusius C.V.
963
Oceanic Breeze LNG Transport S.A.
739
Q10 Offshore Wind B.V.
Sarulla Geothermal Operation Joint Operation
305
Contractor Group253
Oyasu Geothermal Co., Ltd.
35
Myoko Green Energy Co., Ltd.
3
Employees (housing loans)
114,633
Total* Debt for investment funds of Tangguh LNG Project for which the Company participates through MI Berau
B.V. and MI Berau Japan Ltd. (The aforementioned debt is the amount for the construction of Train-3,
based on the Company’s participating interest as the guarantor of indebtedness.)
4. Of accounts receivable-trade and contract assets, the amounts of receivables from contracts with customers andcontract assets, and of other current liabilities, the amounts of contract liabilities, are presented in “(1) Balancesof contract assets and contract liabilities” in “3. Information for understanding the amount of revenue for the year
ended December 31, 2022 and the following fiscal year onward” under “[Notes to Revenue Recognition]” in“Notes to Consolidated Financial Statements” of the consolidated financial statements.

21

[Notes to Consolidated Statement of Income]
1. Impairment loss
The Company groups mining area and other assets as a basic unit that generates cash inflows independently ofother groups of assets. In light of the expected decrease in recoverable amounts for this group of assets in linewith the downward revision in forecasted production volume and other factors, and also since the probability ofsale has grown higher, the Company reduced the respective carrying values of the assets listed below torecoverable amounts, posting the reductions as impairment loss.
(Millions of yen)
Impairment
Use
Location
Classification
loss
Wells
17,245
Machinery, equipment and vehicles
3,196
Assets related to Tight
Texas, United States
Oil Project (Eagle Ford)
Mining rights
5,357
Total
25,799The amount of assets which can be recovered in relation to Tight Oil Project (Eagle Ford) is measured by meansof a net realizable value. The net realizable value is calculated based on the estimated sales price.
2. Revenue from contracts with customers
Net sales are not separately presented for revenue from contracts with customers and other revenue. The amountof revenue from contracts with customers is presented in “1. Information on breakdown of revenue fromcontracts with customers, [Notes to Revenue Recognition], Notes to Consolidated Financial Statements” of theconsolidated financial statements.

22

[Notes to Consolidated Statement of Changes in Net Assets]
1. Type and number of shares issued and treasury stock
Balance as ofJanuary 1, 2022
Number of shares
Common stock
Class A stock
Total
Treasury stock
Common stock
Total

Increase

Decrease(Shares)
Balance as ofDecember 31, 2022

1,462,323,600
11,462,323,601–––

75,656,433–
75,656,433

1,386,667,167
1
1,386,667,168

75,805,993
75,805,993

80,531,633
80,531,633

75,664,763
75,664,763

80,672,863
80,672,863

Notes: 1. The decrease of 75,656,433 shares in issued shares of common stock was due to cancellation of theCompany’s treasury stock by a Board of Directors’ resolution.
2. The increase in the Company’s treasury stock of 80,531,633 shares of common stock is due to theincrease of 79,762,500 shares in acquisition of Company’s treasury stock by a Board of Directors’
resolution, the increase of 769,100 shares in acquisition of the Company’s shares by the Board
Incentive Plan Trust (the BIP Trust), and the increase of 33 shares resulting from the acquisition of
fractional unit shares.
3. The decrease in the Company’s treasury stock of 75,664,763 shares of common stock is due to thecancellation of 75,656,433 shares of the Company’s treasury stock by a Board of Directors’
resolution and a decrease of 8,330 shares resulting from the delivery of the Company’s shares by
the BIP Trust.
4. The number of treasury stock of common stock includes the Company’s shares held by the BIP Trust(as of January 1, 2022: 149,593 shares and as of December 31, 2022: 910,363 shares).
2. Dividends(1) Cash dividends paid
Resolution

Type of share

Cash dividends
paid(Millions ofyen)

Ordinary general
meeting ofshareholders
March 25, 2022

Common stock

38,82628

December 31, 2021

March 28, 2022

0

11,200December 31, 2021

March 28, 2022

41,60030

June 30, 2022

September 1, 2022

0

12,000June 30, 2022

September 1, 2022

Class A stock

Board of Directors’ Common stock
meeting
August 8, 2022
Class A stock

Dividends per
share
(Yen)

Record date

Effective dateNotes: 1. Total dividend as determined by the resolution of Ordinary general meeting of shareholders on
March 25, 2022 includes ¥4 million of dividends on the Company’s shares held by the BIP Trust.
2. Total dividend as determined by the resolution of Board of Directors’ meeting on August 8, 2022
includes ¥27 million of dividends on the Company’s shares held by the BIP Trust.

23

(2) Dividends, whose record date was in the year ended December 31, 2022, and whose effective date will be in
the next fiscal year
Resolution

Type of share

Ordinary general
meeting ofshareholders
March 28, 2023

Common stock

Note:

Class A stock

Source ofdividends
Retainedearnings
Retainedearnings

Cashdividends
paid(Millionsof yen)Dividends
per share(Yen)

Record date

Effective date

41,82032 December 31, 2022

March 29, 2023

012,800 December 31, 2022

March 29, 2023

Total dividend as determined by the resolution of Ordinary general meeting of shareholders on March
28, 2023 includes ¥29 million of dividends on the Company’s shares held by the BIP Trust.

24

[Notes to Financial Instruments]
1. Status of financial instruments
The Company raises funds for oil and natural gas development and construction of natural gas infrastructure
primarily from cash flow on hand, bank loans and issuance of bonds. Oil and natural gas development projects
are primarily funded from long-term loans that the Company has secured from Japan Bank for International
Cooperation, Japanese commercial banks and others. Japan Organization for Metals and Energy Security has
provided guarantees for the principal on certain outstanding amounts of the Company’s long-term loans.
Development Bank of Japan Inc., Japanese commercial banks and others have provided long-term loans for theconstruction of domestic gas infrastructure. Although the Company generally borrows loans with variable interest
rates and issues bonds with fixed interest rates, some loans are with a fixed interest rate depending on the natureof each project.
Regarding the financing policy, the Company manages funds in consideration of being low-risk and high-liquidity.
The Company uses derivative transactions only to manage risks of forecasted transactions and portfolio assets,
and does not engage in speculative derivative transactions.
2. Fair value of financial instruments
Carrying value on the consolidated balance sheet as of December 31, 2022, fair value and the difference between
them are as shown below. Unlisted securities (carrying value on the consolidated balance sheet: ¥20,187 million),and stocks of subsidiaries and affiliates (carrying value on the consolidated balance sheet: ¥687,666 million) are
assumed to have no quoted market prices. Accordingly, these financial instruments are not included in “Investment
securities.” For shares of exploration companies, an allowance for investments in exploration is provided at an
estimated amount based on the financial position of the investees. “Cash and deposits,” “Accounts receivabletrade and contract assets,” “Securities,” and “Short-term loans” (excluding current portion of long-term debt) areomitted as their fair values approximate their book values. This is due to their nature as cash and as accounts
settled over the short term.
Carrying value

Fair value(Millions of yen)
Difference(1) Investment securities
Other securities(2) Long-term loans receivable
Total assets(1) Bonds payable(2) Long-term debt (including current portion)
Total liabilities
Derivatives*

37,51037,510–1,279,383
1,279,383–
1,316,894
1,316,894–
30,00028,953(1,047)
1,234,692
1,196,671(38,020)
1,264,692
1,225,624(39,067)(7,102)(7,102)–* Net claims and debts arising from derivative transactions are presented on a net basis. In case the total amountis a debt amount, the above figure is negative.
3. Financial instruments categorized by fair value hierarchy
The fair value of financial instruments is categorized into the following three levels, depending on theobservability and significance of the inputs used in making fair value measurements:
Level 1:
Fair value measured by using quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2:
Fair value measured by using inputs other than quoted prices included within Level 1 that are
observable for the assets or liabilities, either directly or indirectly.
Level 3:
Fair value measured by using unobservable inputs for the assets or liabilities.
If multiple inputs are used that have a significant impact on the measurement of fair value, fair value is categorizedat the lowest level in the fair value measurement among the levels to which each of these inputs belongs.

25

(1) Financial instruments recorded on the consolidated balance sheet at fair value(Millions of yen)
Category

Fair value
Level 1

Level 2

Level 3

Total

Investment securities
Other securities
Stocks
Bonds
Other

–
–
–

17,47911,957
8,073

–
–
–

17,47911,957
8,073

Derivatives*(6,855)(6,855)Currency related
–
–
(246)
(246)
Commodity related––* 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.
(2) Financial instruments other than those recorded on the consolidated balance sheet at fair value(Millions of yen)
Fair value
Category
Level 1
Level 2
Level 3
Total
1,279,383
Long-term loans receivable––
1,279,383
1,279,383
Total assets––
1,279,383
28,953
28,953
Bonds payable––
1,196,671
1,196,671
Long-term debt––
1,225,624
1,225,624
Total liabilities––
Note: The following is a description of valuation methodologies and inputs used for measurement of the fairvalue of assets and liabilities:
Investment securities
Listed securities, national government bonds, and listed investment trusts are valued using the quoted price.
Because listed securities, national government bonds, and listed investment trusts are traded on active
markets, their fair value is categorized as Level 1.
Derivative Transactions
Among derivative transactions, the fair value for currency-related transactions is based on the priceobtained from the counterparty financial institutions, and the fair value for commodity-related transactions
is based on forward quotations. Because neither case is recognized as a quoted price in an active market,
they are categorized as Level 2.
Long-term loans receivable
The fair value of long-term loans receivable is calculated using the discounted present value method andis categorized as Level 3 because it uses significant unobservable inputs.
Bonds payable
The fair value of bonds payable is based on Reference Statistical Prices (Yields) for OTC Bond
Transactions issued by Japan Securities Dealers Association, and is categorized as Level 2.
Long-term debt
The fair value of long-term debt is calculated using the discounted present value method based on theinterest rate that would be applicable to a similar new loan for the total amount of principal and interest,and is categorized as Level 2.

26

[Notes to Revenue Recognition]
1. Information on breakdown of revenue from contracts with customers

Japan
Crude oil
Natural gas
LPG
Other
Revenue from contracts
with customers
Other revenue
Sales to third parties

Note:

Reportable segments
Eurasia
Middle East &(Europe &AfricaNIS)

Asia &
Oceania

5,989
182,0435
18,737

219,479
293,868
3,463

275,154
43,8401,271,149

–

1,807

–
–
–

206,777

516,811

320,803305
207,082(6,663)510,147–
320,803

Total

Americas––1,808,025
521,676
3,469
20,545

1,271,149

38,1752,353,717(18,235)
1,252,913(4,463)33,712(29,056)
2,324,660–

36,251
1,924“Other revenue” is primarily revenue based on “Accounting Standard for Lease Transactions” (ASBJ
Statement No. 13) and on International Financial Reporting Standards (IFRS) 9 “Financial Instruments”
implemented to foreign consolidated subsidiaries.

2. Basic information for understanding revenue from contracts with customers
This is as listed in “(5) Basis for significant revenues and expenses” under “4. Accounting policies” in “[Basis of
Presenting Consolidated Financial Statements]” in “Notes to Consolidated Financial Statements” of theconsolidated financial statements.
3. Information for understanding the amount of revenue for the year ended December 31, 2022 and the following
fiscal year onward(1) Balances of contract assets and contract liabilities

Receivables from contracts with customers (Balance at the beginning of the period)
Receivables from contracts with customers (Balance at the end of the period)
Contract assets (Balance at the beginning of the period)
Contract assets (Balance at the end of the period)
Contract liabilities (Balance at the beginning of the period)
Contract liabilities (Balance at the end of the period)(Millions of yen)
For the year ended
December 31, 2022
168,224
252,938
–
–
5,180
5,210

(2) Transaction price allocated to the remaining performance obligations
At the Company and its consolidated subsidiaries, the practical expedient is applied to the notes for transaction
prices allocated to remaining performance obligations, and contracts with an initially forecast contract period of
1 year or less are not included in the subjects of the notes.
The total amount of transaction prices allocated to remaining performance obligations and the periods whenrevenue recognition is expected are as follows:(Millions of yen)
For the year ended
December 31, 2022
1 year or less102,263
More than 1 year and up to 5 years
264,626
More than 5 years
185,027
Total
551,918

27

[Notes to Per Share Information]
1. Net assets per share:¥2,891.93

2. Net income per share:¥320.6928



Non-Consolidated Financial Statements
Non-Consolidated Statement of Changes in Net Assets(For the year ended December 31, 2022)
Unit: millions of yen (Amounts truncated to millions of yen)
Shareholders’ equity
Retained earnings

Capital surplus

Retainedearnings

Other retained earnings
Common stock

Balance at the beginningof the period

290,809

Legal capitalsurplus

Total capitalsurplus1,023,802

1,023,802

Reserve foradvanceddepreciation of
non-current
assetsMineprospecting
reserve

2,105

8,108

Retainedearnings
brought
forward

Total retained
earnings

825,533

835,747

2,105–

Cash dividends paid

(80,426)(80,426)

Net income

231,656

231,656(75,248)(75,248)

Changes during the period
Reversal of reserve foradvanced depreciationof non-current assets

Purchase of treasury
stock
Disposal of treasury
stock
Cancellation of treasurystock
Net changes in items
other than those inshareholders’ equity
Total changes during theperiodBalance at the end of theperiod(2,105)–––(2,105)–78,08775,981

290,809

1,023,802

1,023,802

–

8,108

903,620

911,728

29

Unit: millions of yen (Amounts truncated to millions of yen)
Valuation, translation adjustments and others

Shareholders’ equity

Balance at the beginning of theperiodTreasury stock

Total
shareholders’equityUnrealized
holding gain
(loss) on
securities(75,425)

2,074,934

2,566

Total valuation,
Deferred gaintranslation(loss) on hedges adjustments andothers(1,974)591

Total net assets

2,075,526

Changes during the period
Reversal of reserve foradvanced depreciation of
non-current assets
Cash dividends paid
Net income––(80,426)(80,426)

231,656

231,656

Purchase of treasury stock(121,191)(121,191)(121,191)

Disposal of treasury stock

10

10

10

75,248––Cancellation of treasurystock
Net changes in items otherthan those in shareholders’equity

1,979

511

2,491

2,491

Total changes during the period(45,932)

30,048

1,979

511

2,491

32,539Balance at the end of theperiod(121,358)

2,104,983

4,546(1,463)

3,082

2,108,065

30

Notes to Non-Consolidated Financial Statements[Significant Accounting Policies]
1. Valuation method for assets(1) Valuation method for securities
Shares of subsidiaries and affiliates

Stated at cost determined by the moving-average method

Other securities
Securities other than shares, etc.
without a market priceStated 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
the moving-average method.

Shares, etc. without a market priceStated at cost determined by the moving-average method(2) Valuation method for derivatives
Derivatives(3) Valuation method for inventories

Fair value
Carried at cost (balance sheet value is carried at the lower ofcost or market)

Finished goods, raw materials andsupplies

Determined by the moving-average method

Work in process and partly-finishedconstruction

Stated at identified cost method

2. Depreciation method of fixed assets
Tangible fixed assets (except leased assets)

Straight-line method of depreciation is applied.
Useful lives of significant fixed assets are as follows:
Buildings
2-50 years
Structures
3-60 years
Wells
3 years
Machinery and equipment
2-22 years

Intangible assets (except leased assets)

Straight-line method of amortization is applied.
Goodwill is amortized over 20 years.
Software for internal use is amortized over 5 years.

Leased assets

Depreciation of leased assets for financing lease transactions
whose ownership are not to be transferred is calculated basedon the straight-line method over the lease period assuming noresidual value.

3. Basis for allowances
Allowance for doubtful accounts

Allowance for doubtful accounts is provided at an amountdetermined based on the historical experience of bad debt
with respect to ordinary receivables, plus an estimate of
uncollectible amounts determined by reference to specificdoubtful receivables from customers which are experiencing
financial difficulties.

Allowance for investments in exploration

Allowance for investments in exploration is provided for
future potential losses on investments in exploration
31

companies at an estimated amount based on the net assets of
the investees.
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.

Provision for loss on business of
subsidiaries and affiliates

Provision for loss on business of subsidiaries and affiliates isprovided for future potential losses on business operations ofsubsidiaries and affiliates at an estimated amount based on thefinancial positions of these companies.

Provision for loss on guarantees ofsubsidiaries and affiliates

Provision for loss on guarantees of subsidiaries and affiliates
is provided for future potential losses regarding guarantees ofsubsidiaries and affiliates at an estimated amount based on thefinancial positions of these companies.

Provision for bonuses

Provision for bonuses to employees are provided based on
expected payment amounts.

Provision for bonuses to officers

Provision for bonuses to officers are provided based on
expected payment amounts.

Accrued retirement benefits to employees

Accrued retirement benefits to employees are provided at theamount calculated based on the expected retirement benefit
obligation and the estimated value of pension plan assets.
Actuarial gains and losses are charged or credited to income
as incurred.

Provision for share-based payments

Provision for share-based payments is provided to prepare forthe issuance of the Company’s shares to Directors, etc. basedon the share issuance regulations, at the estimated amount ofshare-based payment obligations.

4. Basis for significant revenues and expenses
The content of principal performance obligations regarding revenue from contracts with customers and thenormal timing when those obligations are satisfied (normal timing when revenue is recognized) are as
follows:
The Company conducts exploration, development, production and marketing of crude oil and natural gas(including LPG; the same applies hereinafter) in Japan. For sales of these products, it is concluded that thelegal ownership rights and physical rights of possession, as well as material risks and economic value
associated with ownership of the products, are transferred to the customer, and the Company obtains the rightto receive the price for the products from the customer, primarily at the time when control of the products istransferred to the customer, namely in the case of crude oil and natural gas the time of delivery of the
products to the customer or the time when control is transferred to the customer based on trade termsprescribed in Incoterms or other materials. Revenue is recognized at this time. Therefore, revenue isrecognized based on the transaction price prescribed in the contract with the customer. Because thetransaction price is received within one year following delivery of the products, it does not containsignificant financing components.
5. Accounting for hedge transactions
Hedge accounting

Deferred hedge accounting method is applied.

Hedging instruments and hedged items

Hedging instruments: Foreign exchange forwards
Hedged items:
Investment in share of subsidiaries andaffiliates

32

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.

Hedge effectiveness assessment method

Hedge effectiveness is assessed by comparison based onmarket fluctuations and cash flow fluctuations for hedging
items and hedging instruments.

[Notes to Changes in Accounting Policies]
1. Application of Accounting Standard for Revenue Recognition and others
Effective from the beginning of the year ended December 31, 2022, the Group applied “Accounting Standard for
Revenue Recognition” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 29, March 31, 2020,
hereinafter referred to as “Revenue Recognition Accounting Standard”) and others. Under the Revenue
Recognition Accounting Standard and others, revenue is recognized when the control of the promised goods orservices is transferred to the customer at the amount expected to be received in exchange for the goods or services.
The main changes resulting from the application of the Revenue Recognition Accounting Standard and others are
as follows:(1) Exchange transactions
For exchange transactions involving petroleum products of the same nature and value between entities in thesame line of business, the Group has changed the practice to recognize revenue based on a net amount.
(2) Light oil delivery taxes
For light oil delivery taxes which fall under the amount collected for third parties, the Group has changed thepractice to recognize revenue at an amount excluding light oil delivery taxes from consideration fortransactions.
In accordance with the transitional treatment provided in the provisory clause of paragraph 84 of the Revenue
Recognition Accounting Standard, the cumulative effect at the end of the previous fiscal year fromretrospective application of the Revenue Recognition Accounting Standard is treated as adjustment to retained
earnings at the beginning of the year ended December 31, 2022, and the new accounting policy is applied fromthe adjusted beginning balance of retained earnings.
As a result, net sales and cost of sales for the year ended December 31, 2022 decreased by ¥759 million,
respectively, and there was no effect on operating loss, ordinary income, and income before income taxes. In
addition, there was also no effect on the beginning balance of retained earnings and per share information.
2. Application of Accounting Standard for Fair Value Measurement and others
Effective from the beginning of the year ended December 31, 2022, the Group applied “Accounting Standard for
Fair Value Measurement” (ASBJ Statement No.30, July 4, 2019, hereinafter referred to as “Fair Value
Measurement Accounting Standard”) and others. In accordance with the transitional treatment provided for inparagraph 19 of the Fair Value Measurement Accounting Standard and paragraph 44-2 of “Accounting Standard
for Financial Instruments” (ASBJ Statement No.10, July 4, 2019), the Group applied prospectively a new
accounting policy prescribed by the Fair Value Measurement Accounting Standard and others. This application
has no effect on the non-consolidated financial statements.
[Notes to Change in the Presentation]
Non-Consolidated Statement of Income“Guarantee commission received” and “Gain on sales of stocks of subsidiaries and affiliates,” previously presented
separately in other income, are included in “Other” since they have become less significant.
“Loss on valuation of shares of subsidiaries and affiliates,” previously presented separately in other expenses, isincluded in “Other” since it has become less significant.”

33

[Notes to Accounting Estimates]
1. Recoverability of deferred tax assets(1) Amounts recorded in the non-consolidated financial statements for this fiscal year
Deferred tax assets ¥47,138 million
Note: This is the amount before offsetting with deferred tax liabilities.
(2) Information on the content of significant accounting estimates for identified itemsi) Calculation method of the amountThe Company is considering the recoverability of deferred tax assets in accordance with the“Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, February
16, 2018).
At the end of this fiscal year, the Company recorded recoverable deductible temporary differences anddeferred tax assets on tax loss carry-forwards as a result of the scheduling of temporary differences, etc.
based on the estimate of taxable income prior to factoring in temporary differences in a logically predictable
period in the future.
ii) Major assumptions used for significant accounting estimates
The recoverability of deferred tax assets is largely dependent on estimates of future taxable income. Future
sales volume, crude oil/natural gas prices, operating expenses and selling, general and administrative
expenses are factored as major assumptions for these estimates.
These estimates and assumptions are based on the best judgements made by the management taking into
account various factors such as the impact of the spread of COVID-19, the Russia-Ukraine situation, andthe transition to a net zero-carbon society as a means of addressing the climate change, that were consideredreasonable at the end of this fiscal year.
iii) Effect to non-consolidated financial statements for the next fiscal year
Major assumptions may have a material effect on the amount of deferred tax assets if it is necessary toreview them as a result of changes in future economic conditions.
[Additional Information]
Stock-based remuneration system for directors
As the same information has been stated in “Additional Information” of “Notes to Consolidated Financial
Statements” under “Consolidated Financial Statements,” it is omitted here.

34

[Notes to Non-Consolidated Balance Sheet]
1. Assets provided as collateral are as follows:
Investment in share of subsidiaries and affiliates is ¥4,880 million.
The above is pledged as collateral for liabilities of affiliates.
2. Accumulated depreciation of tangible fixed assets is ¥331,352 million.
3. Contingent liabilities
The Company is contingently liable as guarantors of indebtedness of the following companies:
Millions of yen
INPEX FINANCIAL SERVICES SINGAPORE PTE. LTD.
231,290
Ichthys LNG Pty Ltd
91,541
Japan Oil Development Co., Ltd.
72,985INPEX North Caspian Sea, Ltd.
56,530
Tangguh Trustee*
33,611INPEX CON SON, LTD.
31,184
INPEX Sahul, Ltd.
18,976
Oceanic Breeze LNG Transport S.A.
1,376
Clusius C.V.
1,008
INPEX LOGISTICS (JAPAN) CO., LTD.
992
Q10 Offshore Wind B.V.
739
Sarulla Geothermal Operation Joint Operation Contractor
305
Group
Oyasu Geothermal Co., Ltd.
253
INPEX Ichthys Pty Ltd
97
Myoko Green Energy Co., Ltd.
35
Employees (housing loans)3
Total
540,930* Debt for investment funds of Tangguh LNG Project for which the Company participates through MI Berau
B.V. and MI Berau Japan Ltd. (The aforementioned debt is the amount for the construction of Train-3, basedon the Company’s participating interest as the guarantor of indebtedness.)
4. Monetary assets and liabilities from/to subsidiaries and affiliates (excluding items presented separately)
Short-term monetary assets from subsidiaries and affiliates
Long-term monetary assets from subsidiaries and affiliates
Short-term monetary liabilities to subsidiaries and affiliates
Long-term monetary liabilities to subsidiaries and affiliates

Millions of yen
34,772
52
21,12062[Notes to Non-Consolidated Statement of Income]Transactions with subsidiaries and affiliates
Operating transactions
Net sales
Purchases
Other operating transactions
Transactions other than operating transactions

Millions of yen
24,530182,992
33,530280,967[Notes to Non-Consolidated Statement of Changes in Net Assets]
Type and number of treasury stocks at end of this period
Common stock
80,672,863
Note:
The number of treasury stocks as of the end of this fiscal year includes 910,363 of the Company’s shares
held by the BIP Trust.

35

[Notes to Tax Effect Accounting]Significant components of deferred tax assets and liabilities
Millions of yen
Deferred tax assets
Allowance for investments in exploration
Loss on valuation of shares of subsidiaries and affiliates
Loss on valuation of investment securities
Accrued retirement benefits to employees

Provision for loss on business
Provision for loss on business of subsidiaries and affiliates
Asset retirement obligations
Accrued bonuses
Allowance for doubtful accounts
Provision for loss on guarantees of subsidiaries and affiliates
Impairment loss
Foreign tax credit brought forward
Net operating loss carry-forwards
Other
Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities
Unrealized holding gain on securities

Translation differences due to an application of purchase accounting method
Mine prospecting reserve
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)

25,283100,014
1,114
1,546
2,417
5,720
5,836
344
15,281
12,856
3,190
1,126
8,549
2,132
185,415(138,276)
47,138
1,763
4,886
3,153
1,943
11,74635,392[Notes to Revenue Recognition]
Information that forms the basis for understanding revenue from contracts with customers is omitted from the notes because
the same information is listed in [Notes to Revenue Recognition] in “Notes to Consolidated Financial Statements” in the
consolidated financial statements.

36

[Notes to Transactions with Related Parties]
Type

Name of related
party

Voting interest(Owned)INPEX North
Directly
Caspian Sea, Ltd. (Owned)

INPEX
FINANCIALSERVICESSINGAPORE
PTE. LTD.

Directly(Owned)Description of
the business
relationship51.00% Interlocking–% officers,
capitalsubscription

100.00% Interlocking–% officers,
capitalsubscription

Transaction
detailLong-term loans
receivable fromsubsidiaries andaffiliates

126,664

Loans of funds(Note 1)

61,753

Short-term loans
receivable fromsubsidiaries andaffiliates

126,835

Interest income(Note 1)

8,189

Current assets andOther (Accrued
interest)

2,410

Debt guarantee(Note 2)56,530––

Guarantee
commission
received(Note 2)629

Current assets andOther (Accrued
income)154

Subscription ofshares(Note 3)55,080(in millions
of US$)
400––

Paid-in capitaldecrease(Note 3)

164,173(in millions
of US$)
1,280

–

–

Debt guarantee(Note 2)–

Deposits received
from subsidiaries
and affiliates

533,087

9,429

Current assets andOther (Accrued
interest)

117

–

–

231,290

Guarantee
commission
received(Note 2)154

Current assets andOther (Accrued
income)43

Short-term loans
receivable fromsubsidiaries andaffiliates

53,882

INPEX Gas
Directly
British Columbia (Owned)
Ltd.

45.09% Interlocking–% officers,
capitalsubscription

Loans of funds(Note 5)–INPEX CON
SON, LTD.

100.00% Interlocking–% officers,
capitalsubscription

Debt guarantee(Note 2)

31,184100.00% Interlocking–% officers,
capitalsubscription

Debt guarantee(Note 2)

Japan Oil
Development
Co., Ltd.

Directly(Owned)Guarantee
commission
received(Note 2)

Guarantee
commission
received(Note 2)

37

Balance(Millions ofyen)–Interest income(Note 1)

Directly(Owned)Accounts

Loans of funds(Note 1)

Cashmanagement(Note 4)

Subsidiary

Amounts(Millions of
yen)

53

72,98573––

Current assets andOther (Accrued
income)10––Current assets andOther (Accrued
income)18

Type

Amounts(Millions ofyen)

Voting interest(Owned)Description of
the business
relationship

INPEX ENERGY Indirectly 100.00%
TRADING(Owned)–%SINGAPORE
PTE. LTD.

Purchase offinished goods
and raw
materials

Purchase offinished goods
and raw
materials(Note 6)85,732

Accounts
receivable-trade

19,184

INPEX Angoka
Block 14 Ltd.

(Owned) 100.00%
Directly–%(Owned)Capitalsubscription

Paid-in capitaldecrease(Note 7)34,653Current assets
Other(Accounts
receivable-other)

16,666INPEX Americas, (Owned) 100.00%
Inc.
Directly–%(Owned)Interlocking
officers,
capitalsubscription

Paid-in capitaldecrease(Note 7)

46,339Current assets
Other(Accounts
receivable-other)

6,369

INPEX
Renewable
Energy Europe
LimitedInterlocking
officers,
capitalsubscription

Subscription ofshares(Note 8)45,892––

Debt guarantee(Note 2)

91,541––

Guarantee
commission
received(Note 2)

1,752

–

–

Purchase offinished goods
and raw
materials(Note 6)71,927––

Name of related
partyTransaction
detailSubsidiary(Owned) 100.00%
Directly–%(Owned)Ichthys LNG Pty Indirectly
Ltd(Owned)66.245% Purchase of–% finished goods
and raw
materials

Affiliate

Accounts

Balance(Millions ofyen)

Notes: 1. The Company determines the interest rate based on its market interest rates upon loans of funds in areasonable and appropriate manner. The Company did not accept any collateral.
2. This refers to the guarantee that was set against the loans from financial institutions as a fund for businessdevelopment, etc., and the Company receives guarantee commission calculated based on the guarantee
amount. The amount of transactions of debt guarantee represents the balance of guarantees at the end of
this period.
3. In line with the management of exchange rate risk, the main operations of INPEX FINANCIALSERVICES SINGAPORE PTE. LTD., the Company undertook a subscription of shares at US$1 pershare, and a paid-in capital decrease at US$1 per share.
4. The Group adopts a cash management system (hereinafter “CMS”) for the purpose of efficient fundmanagement within the Group. The amount of funds transactions through the CMS are not stated above
because it is difficult to identify the amounts by transaction details. The Company determines the interest
rate based on its market interest rate.
5. The Company determines the interest rate based on its market interest rates upon loans of funds in areasonable and appropriate manner. The Company did not accept any collateral. For the said loan,¥53,882 million was recorded as allowance for doubtful accounts.
6. All transactions were conducted under general transactional conditions, which are the same as those usedin transactions with independent third parties.
7. A refund is received from subsidiaries according to the ratio of shares owned.
8. The Company received the capital increase conducted through shareholder allocation by INPEX
Renewable Energy Europe Limited at the price of 1 GBP per share.
[Notes to Per Share Information]
1. Net assets per share:¥1,614.15

2. Net income per share:¥169.51

38

[Other notes]
Change in estimates for asset retirement obligation
Regarding domestic oil and gas production facilities and gas supply and marketing facilities in Japan, the Group has
obligations to prevent mine pollution at abandoned well sites after the completion of the production under JapaneseMine Safety Act and restore sites to their original condition at the time of business termination in accordance withlease contracts.
Among these facilities, certain domestic oil and gas production facilities are operated complementarily andholistically in connection with the LNG terminal and it had been difficult to formulate reasonable long-term
production plan considering the balance between the production and the inflow of LNG. The Group had planned tooperate domestic gas supply and marketing facilities permanently as highly public infrastructures for energy supply
and it had been impossible to determine the timing of decommission. For this reason, the Group had not recognizedasset retirement obligation since the Group had not been able to estimate it reasonably until the end of the previous
fiscal year.
At the end of March 2022, the Group reviewed the production and development plan considering “Long-term Strategy
and Medium-term Business Plan (INPEX Vision@2022)” formulated and published in February 2022. As a result, it
has been possible to reasonably determine the timing of decommissioning of domestic oil and gas production facilities
and certain gas supply and marketing facilities that the Group had not recognized asset retirement obligation since it
had been impossible to determine the timing of decommissioning, and the asset retirement obligation of ¥12,149
million has been recorded. Due to this change, consolidated operating income, ordinary income and income before
income taxes for this fiscal year decreased by ¥11,635 million respectively.

39