INPEX CORPORATION

Financial Results
for the six months ended June 30, 2023
August 10, 2023
（Content announced on August 9, 2023)

Agenda１．Business Overview
２．Sustainable Growth of Corporate Value

Takayuki Ueda
Representative Director, President & CEO

３．Consolidated Financial Results
for the six months ended June 30, 2023
４．Consolidated Financial Forecasts

Daisuke Yamada
Director, Managing Executive Officer,
Finance & Accounting

for the year ending December 31, 2023

Copyright © 2023 INPEX CORPORATION. All rights reserved.

1

Cautionary Statement
This presentation includes forward-looking information that reflects the plans and expectations of theCompany. Such forward-looking information is based on the current assumptions and judgments of
the Company in light of the information currently available to it, and involves known and unknown
risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause theCompany’s performance, achievements or financial position to be materially different from any future
results, performance, achievements or financial position expressed or implied by such forward-looking
information. Such risks, uncertainties and other factors include, without limitation:◼ Price volatility and change in demand in crude oil and natural gas◼ Foreign exchange rate volatility◼ Change in costs and other expenses pertaining to exploration, development and production
The Company undertakes no obligation to publicly update or revise the disclosure of information inthis presentation (including forward-looking information) after the date of this presentation.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

2

1. Business Overview

Takayuki Ueda
Representative Director, President & CEO

Business Activities in FY2023 – Oil and Gas Business –First half of FY2023

Second half of FY2023 (planned)

Conducted stable production operations overall.
65 LNG cargos shipped.

Aim to increase production capacity to 9.3 million
tons of LNG per annum.

Offshore Oil Fields & Onshore
Concession (Abu Dhabi)

Conducted stable production operations andcontinued production capacity increase.

Conduct stable production operations andcontinue production capacity increase.

Snorre Oil Field etc.
(Norway)

Started supplying power from floating windfarm to Snorre project.

Conduct stable production operations and explore
opportunities to develop discovered but
undeveloped oil and gas fields.

Abadi LNG
(Indonesia)

Submitted revised POD incorporating CCS.

Continue activities related to FEED and FID.

Continued exploration studies.

Plan to conduct exploratory drilling at WA-285-P.

Conducted exploration activities and drilling at
appraisal wells.

Conduct drilling at exploration and appraisal wells.
Conduct evaluation work for the block.

Awarded Blocks 4E and SK428 in Malaysia.

Commence exploration activities at both blocks.

Continued exploratory drilling operations northof Minami-Nagaoka Gas Field in Japan.

Consider gas field development based on resultsof exploratory drilling.

Ichthys LNG (Australia)

Production
phaseprojects

Pre-FIDphase
projects

Vicinity of
the Ichthys Field
Exploration
phase
projects

Abu Dhabi Onshore Block 4

Other

Copyright © 2023 INPEX CORPORATION. All rights reserved.

4

Business Activities in FY2023 – 5 Net Zero Businesses –First half of FY2023

Second half of FY2023 (planned)

Completed land reclamation for Blue Hydrogen/Ammonia
Project in Kashiwazaki City, Niigata Prefecture, Japan.

Held a groundbreaking ceremony and commenced constructionof surface facilities in July. Aim to begin commissioning in March2025 and complete construction in August 2025.

Evaluated the feasibility of sequestering CO2 captured at the
INPEX-operated Ichthys LNG plant in Darwin, Australia.

Conduct 3D-seismic data surveys.

Applied to undertake “Tohoku Region West Coast CCS
Initiative” and “Tokyo Metropolitan Area CCS Project” for the
FY2023 “Survey on Implementation of Advanced CCS Projects”
commissioned by JOGMEC and passed screening process.

Officially selected by JOGMEC to participate in the two projects
listed on left.

Renewable
EnergyAcquired shares in Moray East Offshore Wind Farm, UK

Acquired 50% of shares in Enel Green Power Australia
engaged in renewable energy operations including retail andtrading.

CarbonRecycling &NewBusiness

Commenced construction of CO2-methanation test
facilities capable of producing 400 normal cubic metersof methane per hour in Niigata, Japan

Continue construction of facilities, aim to start
production during FY2025.

ForestConservation& OtherMarketed carbon-neutral products including gas and jet fuel.

Implement project assessments to acquire new forestationcredits.

Hydrogen &Ammonia

CCS/CCUS

Copyright © 2023 INPEX CORPORATION. All rights reserved.

5

Highlights of first half FY2023 Results

Net sales

Net production volume per day¥1,078.7billion

647.2 thousand（1.8% decrease YoY)

（1.0% decrease YoY）

Production cost per barrel

Net income
attributable to owners of parent

US$5.7¥254.2 billion（$0.1 decrease YoY)

（38.1% increase YoY)

*Average crude oil price (Brent) $79.91, average exchange rete ¥/$ 134.99.
Copyright © 2023 INPEX CORPORATION. All rights reserved.

6

Forecast for the year ending December 31, 2023

Net sales

Net production volume per day¥2,031.0 billion

625.9 thousand（12.6% decrease YoY)

（1.0% increase YoY）

Production cost per barrel

Net income
attributable to owners of parent

US$6.0¥320.0 billion（$0.2 increase YoY)

（30.6% decrease YoY)

*Assumption: Average crude oil price (Brent) $80.0, average exchange rete ¥/$ 135.0.
Copyright © 2023 INPEX CORPORATION. All rights reserved.

7

Progress against Medium-term Business Plan 2022-2024

FY2022(Actual)2Q FY2023(Actual)FY2023(Expected)

FY2024 Targets

Assumptions
Management Targets

Brent Oil Price (US$ per barrel)

99.04

79.91

80.0

US$60

US$70

Exchange rate (JPY/US$)

131.64134.99

135.0

110

110

¥461.0 billion¥254.2 billion¥320.0 billion¥170.0 billion¥240.0 billion¥1,061.6 billion¥570.5billion

About ¥895.0
billion¥600.0 billion¥700.0 billion

Around 8.5%

Around 6.0%

Around 8.0％

50% or less

50% or less

Net income
attributable to owners of parent
Operating Cashflow before exploration* Includes Ichthys downstream Incorporated Joint Venture and differs frominstitutional accounting basis

ROE

Net debt/equity ratio*Includes Ichthys downstream Incorporated Joint Venture anddiffers from institutional accounting basis

Net production volume (boed)Business Targets

Production cost per barrel(excluding royalties)

13.5%
46.0%

34.4%

Around 38%

622 thousand

647 thousand

626 thousand

US$5.8

US$5.7

US$6.0Net Carbon Intensity* (equity share emissions volume (Scope 1＋2) - offset) / (net production
volume of upstream oil & gas business + electricity generated using
renewable energy)

SafetyCopyright © 2023 INPEX CORPORATION. All rights reserved.

Reduction of 2/3of the FY2024
target or more

28kg/boe

Zero major
accidents

Zero major
accidents

Level exceeding 700 thousand boed
Reduction towards US$5 per barrel or below
Reduction of 10% (4.1kg/boe) or more
over a 3-year period towards 2030 target* 2030 target: Reduction of 2019 net carbon intensity (41.1kg/boe) by over 30%

Zero major accidents* Fatalities, major leaks and serious injuries, etc. at INPEX-operated projects

8

FY2023 Cash Allocation Forecast of Operating Cash Flow before Exploration*1(Billions of Yen)

(FY2023 Revised Forecast)
Assumption: Brent $80.0, USD/JPY 135.0 yen(FY2023 Forecast as of February 9, 2023)
Assumptions: Brent $75.0, USD/JPY 125.0 yen
Debt Reduction etc.*2
About 240
Debt Reduction etc.*2
About 190

Shareholder Returns
110 or greater(Total Payout Ratio of
Around 40% or greater)

Operating Cash Flow
Before Exploration*3
About 800

Shareholder Returns
About 200
Operating Cash Flow
Before Exploration*3
About 900

Growth Investment
About 460

Growth Investment
About 500

5 net zerobusinesses as a part
About 80

5 net zerobusinesses as a part
About 100

Revenue

Expenditure

Revenue

Expenditure*1 Including cashflow of Ichthys LNG Pty Ltd, the Ichthys Downstream IJV (Incorporated Joint Venture), an equity method affiliate*2 Including increase/decrease of cash and deposits etc.
*3 Figure after deducting R&D costs of approximately 8.0 billion yen related to activities including the integrated demonstration of hydrogen & ammonia production in Kashiwazaki City,
Niigata Prefecture, Japan and the methanation project.
Copyright © 2023 INPEX CORPORATION. All rights reserved.

9

ESG Initiatives

Environment•••

Received an A- score in the CDP
2022 climate change disclosure
Received a special award as
Environmentally Sustainable
Company at Japan Environment
Ministry's ESG Finance Awards
Japan
Identify risks and opportunities
based on policies andcommitments on biodiversity
conservation, water management,
and waste management
established at the end of 2022.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

Social••••Published INPEX’s Supplier Code of
Conduct established in 2022
Engaged in social investment
activities globally of approximately
3.0 billion yen (in 2022)
Announced and started
Reconciliation Action Plan 20232025 published in Australia
Established a foundation with anendowment of 3.0 billion yen tostrengthen social contribution
efforts in the UAE

Governance

•

•
•

•

Disclosed the Board of Directors
Skill Matrix and continued toundertake evaluation of theeffectiveness of the Board
Operated the executive
compensation system linked to theMedium-term Business Plan
Formulated initiatives toimplement management taking
into account cost of capital andshare prices
Held the Board of Directors
meeting in Abu Dhabi

10

2. Sustainable Growth of Corporate Value

Takayuki Ueda
Representative Director, President & CEO

Analysis of Current Situation
Based on sound financial performanceand improved shareholder returns,
PBR is on the rise although it iscurrently in the 0.5 to 0.6 range. Our
share price also remains at a
discounted level. We believe thisreflects the uncertainty over thesustainability of the oil & gas business,the risk of assets being stranded andthe uncertainty concerning our future
shareholder returns.

On the other hand, in view of thecurrent global energy situation, we
acknowledge there are growing
expectations for the roles we play insociety. Thus, we aim to thoroughly
make our oil & gas business cleaner
and more resilient to strengthen our
stable supply of energy.

PBR

We are steadfastly pursuing ourenergy transformation through our 5
net zero businesses by implementing
renewableenergybusinesses,
including wind power and geothermal
power projects in our core regions,and making sound progress onhydrogen and methanation initiatives.

Financial Results
Share Price (LHA)(yen per share)(times)BPS (LHA)

3,500

3,269

1.20

Net income attributable to owners of parent(billion yen)
1,200

Cash flow from operations before exploration
Investment including Ichthys Downstream IJVPBR (RHA)PBR x1.0

3,000
2,500

2,880

1.00

0.80

1,874
0.48

0.44

1,396

0.30

1,000

0.49
1,598

461.0

0.60
400
0.40

349.2

318.9

320.0

223.0
200

123.5

1,002

1,137
500

586.8

600

0.55
1,500

Approx.
895.0

1,000

800

2,253
2,082

2,000

1,061.6

0.20

0

0.00

-200

556

0

2019/122020/122021/122022/122023/6*(111.6)
2019/122020/122021/122022/122023/12(Forecast)*INPEX’s PBR is 0.56 when calculated with the share price of 1,833 yen as of 31 July 2023, and BPS of 3,269 yen as of 30 June 2023.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

12

Our Initiatives Going Forward
In INPEX Vision @2022, we outlined ourstrategy to sustainably provide a stablesupply of diverse energy over the longterm, and to contribute to the energy
transformation as an industry pioneer.
This strategy continues to be valid in viewof the current global energy situation.

We will aim to sustainably grow ourcorporate value by investing in sources ofbusiness growth, while
givingconsiderable weight to the long-term
improvement of capital efficiency. Basedon such accomplishments, we will
strengthen shareholder returns.

Growth Initiatives toGain Market Confidence
ROE, ROIC Improvement

Improving Capital Efficiency⚫ Steady growth in net income
through portfolio enhancement,
cost reduction⚫ Introducing ROIC as a new
management KPI to more precisely
manage capital efficiency. With
ROE and COE in mind, will aim torealize ROIC to stably exceed WACC
(approx. 6% on CAPM basis) aiming
for further enhancement⚫ Appropriate control of financial
leverage

PBR
Improving
Capital Improvement
Efficiency

Gaining Market Confidencein Our Future Growth
INPEX
PBR x0.5
Optimization of Cost of Capital

Action to improve Capital
Efficiency

Stronger Shareholder Returns
and Deeper Dialogue with Investors
Copyright © 2023 INPEX CORPORATION. All rights reserved.

We
will
promotesustainability
management and strategically allocate
management resources to developing
technology and human resources. We will
also continue to provide a stable supply ofenergy, promote climate change response
and pioneer energy transformation.

Gaining market confidence to our
future business growth throughfollowing initiatives:⚫ Oil and Gas (Ichthys, Abadi) growth⚫ Turning our renewable energy
business into a contributor to stable
income⚫ Through CCS, reducing stranded
asset risks in oil and gas⚫ Capturing growth opportunities inhydrogen and ammonia

Confidence inFuture Business
Growth13

Initiatives to Improve Capital Efficiency
Following the start-up of Ichthys, INPEX isin the next phase of growing its businessfoundations. By continuing even higher
quality growth investments, we aim toenlarge our portfolio and improve capitalefficiency through strengthening ourenergy business foundations.

We aim to achieve a ROIC above WACC ineach of our business areas.
⚫ To appropriately reflect our businesscharacteristics, for the numerator of ROIC, we
utilize adjusted net income (before interest
expenses, extraordinary profit/loss and net
income/loss attributable to non‐controllinginterests), which includes equity in earnings ofaffiliates such as the Ichthys Downstream IJV.

ROE、ROIC

Increasing ROE through continuationof quality growth investments
ROIC(Illustrative)

ROE

Cost of Equity Approx. 8%(CAPM basis)

15%

13.5%

Majors model
9.4%

7.6%

10%

8.5%

4.1%

5%

5.0%

ROE

7.7%

3.0%

Backed by strong cashflow throughfactors such as stable production at
Ichthys, reduction of interest-bearing
debt has progressed ahead of schedule
further securing our financial soundness.
Going forward, we will appropriately
control leverage so that the net D/E ratio
remains largely within the range of 30%
to 50%.

Continuation ofquality growthinvestments

1.6%
WACC Approx. 6%(CAPM basis)

0%

ShrinkingInvestment
Model

-3.9%
-5%

2019/12

Sustainable
Investment
Model2020/122021/122022/12

Copyright © 2023 INPEX CORPORATION. All rights reserved.

2023/12(Forecast)

2024/12(Illustrative)

time
14

Highlights of Our Growth Initiatives
We will aim to gain the market’s confidence in our future business growth, positioning Ichthys & Abadi, renewableenergy and CCS & hydrogen as pillars of our future business strategy.

Source of earnings

Oil & Gas

Aiming to establish as
future source of stable earnings

Renewable
EnergyAdvance investment
in emerging markets

CCS,
Hydrogenetc.

⚫ Throughallocationofmanagement resources toour core business regions,will pursue synergies byleveraging our existing assets,
networks and technologies toimprove efficiency in ourbusiness.

⚫ At Ichthys, we will leverage
our existing assets to explore,
acquireanddevelopdiscovered reserves in thevicinity of the Ichthys Field toensure sustained, long-term
stable production as well as
pursue high profitability
through increased production.

⚫ Abadi is an important pillar for
our future growth. We will
progress discussion with our
new partners, Pertamina andPetronas, to materially restart
the project this year. We aim
to achieve an IRR in the mid10% range and a ROIC well
above the WACC.

⚫ As a strategic investment for energy
diversification, we will aim to pursue projects
that can achieve a ROIC above the WACC.

⚫ We entered a strategic partnership in Australia with
ENEL, a leading renewable energy company. We aim
to make it the center of our renewable energy
business by applying efficient business models to awide-ranging business portfolio including project
development, power generation, storage and retail.

⚫ CCS is the key to reducing the risk of oil & gas
assets being stranded by making them cleaner.
We will progressively implement the
Bonaparte CCS in Australia, Abadi CCS and theadvanced CCS projects in Japan.

⚫ In our hydrogen-associated business, we will capture
future growth opportunities by conducting surveys anddemonstrations. Japan’s first integrated hydrogen andammonia production and usage demonstration project inKashiwazaki, Niigata and a methanation demonstration
projectin Nagaoka,Niigata are in the development stage.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

15

Stronger Shareholder Returns and Deeper Dialogue with Investors
Based on our confidence in securing
future business growth and as an action
to improve capital efficiency, we willcontinue to strengthen shareholder
returns.

With reduction of net interest-bearing
debt steadily progressing, keeping in
mind the balance with growthinvestments, we will expand allocation
to shareholder returns and conduct thefollowing measures.

As a result, shareholder returns in FY2023
will amount to approximately 200.0
billion yen. Dividend payout ratio andtotal payout ratio (including buyback) is
forecasted to be approximately 30% and61%, respectively.

① Annual DPS forecast increased to 74 yen per share from 62 yen in FY2022 (37 yen interim & 37 yen at year-end)② Best efforts will be made for FY2024 DPS to be equal to or greater than FY2023 DPS③ To conduct share buybacks amounting 100.0 billion yen in FY2023④ To cancel own shares acquired in FY2022 and FY2023 (120.0 billion yen in FY2022, 100.0 billion yen in FY2023)

Increasing DPS

Share Buybacks and Cancellation(yen per share)100

2023/12100.0
billionyen

To be boughtback andcancelled2022/12120.0
billionyen

To becancelled

About 80
million shares

2021/1270.0
billionyen

Cancelled

About 76
million shares

90
80
70
60
50
40
30

48

20
10

18

30

24

62

74

24

0

2018/3

2019/3

2019/12

Deeper Dialogue with
Investors

2020/122021/122022/122023/122024/12(Forecast) (Illustrative)⚫ Institutional investors and analysts: To hold inaugural Investor Day and enhance one-on-one meetings, small meetings,
conferences organized by securities companies, overseas road shows, overseas site visits⚫ Individual investors: To enhance presentation sessions and domestic site visits

Copyright © 2023 INPEX CORPORATION. All rights reserved.

16

3. Consolidated Financial Results
for the six months ended June 30, 2023

Daisuke Yamada
Director, Managing Executive Officer,
Finance & Accounting

Highlights of the Consolidated Financial Results
for the six months ended June 30, 2023

2Q FY2022(Actual)2Q FY2023(Actual)Change% Change

Average crude oil price (Brent) ($/bbl)

104.9479.91(25.03)(23.8%)

Average exchange rate (¥/$)

123.15134.9911.84yendepreciation

9.6%
depreciation

Net sales(Billions of yen)

1,098.4

1,078.7(19.6)(1.8%)

Operating income (Billions of yen)

584.5

570.5

(14.0)(2.4%)

Ordinary income (Billions of yen)

626.3

696.4

70.1

11.2%

Net income attributable toowners of parent*1 (Billions of yen)

184.1

254.2

70.1

38.1%

Net income per share*2 (Yen)132.83194.68

61.85

46.6%

*1 International Accounting Standards (IAS) 12 “Income Taxes” (amended in May 2021) has been applied to some foreign consolidated subsidiaries andforeign equity-method affiliates from FY2023, and the figures for 2Q FY2022 listed as reference to 2Q FY2023 have been revised primarily due to this.
*2 Average number of INPEX shares issued and outstanding during the six months ended June 30, 2022: 1,386,326,951 shares
Average number of INPEX shares issued and outstanding during the six months ended June 30, 2023: 1,306,002,898 shares

Copyright © 2023 INPEX CORPORATION. All rights reserved.

18

Sales by Product

Crude OilNatural Gas(excluding LPG)

LPG

2Q FY2022

2Q FY2023

Change% Change

Net sales (Billions of yen)

843.2

766.3

(76.9)(9.1%)

Sales volume (thousand bbl)

70,95669,701(1,255)(1.8%)

Average unit price of overseas sales ($/bbl)

96.29

81.44

(14.85)(15.4%)

Average unit price of domestic sales (¥/kl)

81,784

66,691(15,093)(18.5%)

Average exchange rate (¥/$)

123.37135.0111.64yendepreciation

9.4%
depreciation

Net sales (Billions of yen)

242.4

296.5

54.1

22.3%

Sales volume (million cf)

238,760

249,555

10,795

4.5%

Average unit price of overseas sales($/thousand cf)

6.08

6.02

(0.06)(1.0%)

Average unit price of domestic sales (¥/m3)

71.82

102.18

30.36

42.3%

Average exchange rate (¥/$)

123.41134.8911.48yendepreciation

9.3%
depreciation

Net sales (Billions of yen)

2.1

5.8

3.6

166.5%

Sales volume (thousand bbl)

34

441

407

-

Average unit price of overseas sales ($/bbl)

69.56

47.02

(22.54)(32.4%)

Average unit price of domestic sales (¥/kg)

108.93---

Average exchange rate (¥/$)

122.54134.8012.26yendepreciation

10.0%
depreciation* 1m3=41.8605MJ
Copyright © 2023 INPEX CORPORATION. All rights reserved.

19

2Q FY2023
Analysis of Income (2Q FY2022 vs 2Q FY2023)(Billions of Yen)

+70.1

Decrease in sales volume : (9.3) (Crude oil: (14.9), Natural gas (including LPG): +5.6 )Decrease in unit price : (92.8) (Crude oil: (127.8), Natural gas (including LPG): +34.9 )Exchange rate: +83.0 (Crude oil: +65.8, Natural gas (including LPG): +17.1 )Others : (0.5)

Main factors for change:
Decrease in exploration expenses+2.0

Increase in provision for explorations (Other expense) (7.5)(21.5)
Operating income (loss)*1
Decrease in
2Q FY2022
Net sales
Net income
attributable toowners of parent*2

Decrease in
Cost of sales

Increase in
Exploration
expenses

Increasein
SG&AInterest income+27.8

Foreign exchange gain

+7.4

Interest expenses
Dividend income(18.0)(4.3)+91.8
Other income (expense)*1
Equity inearnings
of affiliates

Net interest
incomeand others

Net impact of revaluation offinancial assets
+21.9

(1.1)
Income taxes

Revaluation
Tax effect onofrevaluation offinancial assets financial assets

Other tax
expenses

Net income(loss)
attributable
to noncontrollinginterests

2Q FY2023
Net income
attributable toowners of parent*1 Income (loss) related to movement of provision for explorations included in “other income (expense)” in the consolidated financial statements, is presented in “operating income (loss)” in this slide.
*2 International Accounting Standards (IAS) 12 “Income Taxes” (amended in May 2021) has been applied to some foreign consolidated subsidiaries and foreign equity-method affiliates from FY2023,
and the figures for 2Q FY2022 listed as reference to 2Q FY2023 have been revised primarily due to this.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

20

Balance Sheet(Billions of yen)

December 2022

Current assets

729.4

Summary of financial information for
Ichthys downstream JV (100% basis,including the Company’s equity share
66.245%)(Billions of yen)
• Current assets : 175.1• Fixed assets*1 : 4,501.0• Total assets:
4,676.1*1 Fixed assets include interest expenses
which are not included in CAPEX, andcapitalized costs before FID.

Change% Change

907.2

177.7

24.4%

2,473.1

2,605.2

132.1

5.3%

Intangible assets

482.7

485.3

2.6

0.5%

Recoverable accounts under
production sharing

521.5

503.4

(18.0)(3.5%)

Other

2,106.9

2,418.1

311.2

14.8%

Less allowance for recoverable
accounts under production sharing(53.8)(54.7)

(0.8)

1.6%

The total of interest-bearing debt is 1.2
trillion yen.

Total assets

6,259.8

6,864.7

604.8

9.7%

Current liabilities

526.7

753.3

226.6

43.0%

Long-term liabilities

Adding the off-balanced net interestbearing debt of the Ichthys downstream
IJV brings the total of INPEX net loans tobe 1.4 trillion yen (as of June 30, 2023).

1,710.7

1,575.6(135.0)(7.9%)

Total net assets*2

4,022.3

4,535.6

513.3

12.8%

(Non-controlling interests)

261.5

265.4

3.9

1.5%

Total liabilities and net assets*2

6,259.8

6,864.7

604.8

9.7%

Net assets per share *2 (Yen)2,879.68

3,269.65

389.97

13.5%

Tangible fixed assets

June 2023(Billions of yen)
Total shareholders’ equity: +220.7
Accumulated other comprehensive
income: +288.6• Deferred gain (loss) on hedges: +2.8
• Translation adjustment: +286.4*2 International Accounting Standards (IAS) 12 “Income Taxes” (amended in May 2021) has been applied to some foreign consolidated subsidiaries and foreign equity-method affiliates from FY2023,
and the figures for December 2022 listed as reference to June 2023 have been revised.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

21

Statement of Income
2Q FY2022

2Q FY2023

Change% Change

Net sales

1,098.4

1,078.7(19.6)(1.8%)

Cost of sales

447.3

439.0

(8.2)

(1.8%)

Gross profit

651.1

639.6

(11.4)(1.8%)

Exploration expenses

13.3

11.3

(2.0)

(15.3%)(Billions of Yen)

Selling, general and administrative
expenses

53.2

57.8

4.6

8.7%

Decrease in sales volume :(9.3)

Decrease in unit price :(92.8)

Exchange rate:
Others :

+83.0
(0.5)

Cost of sales for Crude Oil:
(Change)284.5(21.8)

Cost of sales for Natural Gas*1: 148.8(Change)+13.4*1 Including LPG

Operating income

584.5

570.5

(14.0)(2.4%)

Other income

143.2

163.8

20.5

14.3%

Other expenses

101.4

37.8

(63.6)(62.7%)

Ordinary income

626.3

696.4

70.1

11.2%

Total income taxes

445.5

446.7

1.1

0.3%

Net income (loss) attributable tonon-controlling interests

(3.4)

(4.4)

(1.0)

31.7%

Net income attributable toowners of parent*3

184.1

254.2

70.1

38.1%

Main factors for change :Interest income+27.8

Modification gain on financial
assets and others *2+92.7
Equity in earnings of affiliates (92.7)
Gain on reversal of allowance forrecoverable accounts under production
sharing(6.7)
Main factors for change :Interest expenses+18.0

Modification loss on financial
assets and others(80.0)*2 In accordance with International Financial Reporting Standards (IFRS) 9 “Financial Instruments” implemented to foreign consolidated subsidiaries, the gain or loss was recognized mainly due tomodification of financial assets that do not result in derecognition, revisions to estimated future cash flows of financial assets, and other factors. It includes the gain or loss incurred from transactions withaffiliated companies. Adjusted for equity in earnings of affiliates and tax effect accounting, the impact to consolidated net income was minimal.
*3 International Accounting Standards (IAS) 12 “Income Taxes” (amended in May 2021) has been applied to some foreign consolidated subsidiaries and foreign equity-method affiliates from FY2023,
and the figures for 2Q FY2022 listed as reference to 2Q FY2023 have been revised primarily due to this.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

22

Statement of Cash Flows(Billions of Yen)

2Q FY2022

2Q FY2023

ChangeIncome before income taxes*

626.3

696.4

70.1

Depreciation and amortization*

140.9

123.8

(17.0)

Modification loss on financial assets and others

80.0

-

(80.0)

Modification gain on financial assets and others-(92.7)(92.7)

Recovery of recoverable accounts under production sharing (capital expenditures)

41.7

40.1

(1.6)

Recoverable accounts under production sharing (operating expenditures)

(3.9)

(4.6)

(0.7)

Equity in losses (earnings) of affiliates*(101.4)

(8.7)

92.7

Income taxes paid

(350.1)(398.6)(48.5)

Other(22.4)

76.8

99.2

Net cash provided by (used in) operating activities

411.0

432.3

21.3

Payments for time deposits / Proceeds from time deposits

11.0

2.7

(8.3)

Payments for purchases of tangible fixed assets(81.8)(84.8)(3.0)

Payments for purchases of securities and investment securities /Proceeds from sales of securities and investment securities(67.6)(337.8)(270.1)

Investment in recoverable accounts under production sharing (capital expenditures)(17.7)(17.4)

0.2

Long-term loans made / Collection of long-term loans receivable(210.1)

84.9

295.0

Purchase of shares of subsidiaries resulting in change in scope of consolidation(31.4)

-

31.4

Other

14.0

(14.6)(28.7)Net cash provided by (used in) investing activities(383.7)(367.2)16.4

Net cash provided by (used in) financing activities

12.1(120.0)(132.1)

Cash and cash equivalents at end of the period

268.6

154.8

(113.8)* International Accounting Standards (IAS) 12 “Income Taxes” (amended in May 2021) has been applied to some foreign consolidated subsidiaries and foreign equity-method affiliates from FY2023, and the figures for 2Q FY2022
listed as reference to 2Q FY2023 have been revised.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

23

4. Consolidated Financial Forecasts
for the year ending December 31, 2023

Daisuke Yamada
Director, Managing Executive Officer,
Finance & AccountingDifference between Consolidated Financial Forecasts
and Actual Result for the six months ended June 30, 2023

Previous Forecasts as of
May 10, 2023

ChangeActual Results% Change

Crude oil price (Brent) (US$/bbl)

81.1

79.9

(1.2)

(1.5%)

Exchange rate (yen/US$)

131.2

135.0

3.8

2.9%

Net sales (billions of yen)

1,071.0

1,078.7

7.7

0.7%

Operating income (billions of yen)

551.0

570.5

19.5

3.5%

Ordinary income (billions of yen)

630.0

696.4

66.4

10.5%

Net income attributable to owners ofparent (billions of yen)

218.0

254.2

36.2

16.6%

Copyright © 2023 INPEX CORPORATION. All rights reserved.

25

Consolidated Financial Forecasts for the year ending
December 31, 2023
◼ Financial Forecasts for the year ending December 31, 2023
Previous Forecasts as of
May 10, 2023

(billions of yen)

Revised Forecasts as of August
10, 2023

80.0

80.0

Crude oil price (Brent) (US$/bbl)

1st half:81.1
2nd half:79.0

1st half:79.9
2nd half:80.1

130.0

135.0

Exchange rate (yen/US$)

1st half:131.2
2nd half:128.8%
ChangeChange0.0

0.0%

1st half:135.0
2nd half:135.0

5.0

3.8%

1,994.0

2,031.0

37.0

1.9%

Operating income (billions of yen)

984.0

1,009.0

25.0

2.5%

Ordinary income (billions of yen)

1,077.0

1,151.0

74.0

6.9%

300.0

320.0

20.0

6.7%

Net sales (billions of yen)

Net income attributable to owners of parent(billions of yen)

◼ Shareholder Returns

Total
Payout Ratio

End of 2Q

End of fiscal year
(forecast)

Full year(forecast)

Total Share Buybacks

Around¥37.00¥37.00¥74.00¥100 billion

61%

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26

FY2023 Financial Forecasts
Analysis of Net Income (Previous forecasts vs Revised forecasts)(Billions of Yen)

400
Business Activities factors(7.1) Billions of Yen

Market factors+13.2 Billions of Yen

Other factors+13.9 Billions of Yen

350
16.0
300

(9.6)

(2.8 )
250

(1.2)

6.0
(2.1)

(10.0)

Exchange Rate (Yen/US$)May 10 Forecast 130.0
Revised Forecast 135.0

200

150

20.0

3.7

Crude Oil Price (Brent) （US$/bbl）
May 10 Forecast 80.0
Revised Forecast 80.0

320.0

300.0

100

50

0
FY2023
Net income(Previous
forecasts
May 10, 2023)

Impact fromcrude oil priceImpact fromexchange rate

Copyright © 2023 INPEX CORPORATION. All rights reserved.

Decrease insales volume

Decrease in
exploration
expenses

Increase in
G＆A

Project-related
loss

Divestment

Decrease intaxes costs

Others

FY2023
Net income(Revised
forecasts
August 10, 2023)

27

FY2023 Cash Flow* Forecast

Previous forecasts as ofFebruary 9, 2023

(Billions of Yen)

Previous forecasts as of
May 10, 2023

FY2023(Revised forecast)Difference b/w
May 10 forecast
and Revised
forecast

Development expenditure (Oil & Gas Business)

349.0

342.0

347.0

5.0

Development expenditure (5 Net Zero Businesses)

94.0

72.0

76.0

4.0

Exploration expenditure (inclusive of some 5 Net Zero Businesses)

71.0

59.0

55.0

(4.0)

Others (Divestment etc.)(18.0)(19.0)(20.0)(1.0)

Growth Investment

496.0

454.0

458.0

4.0

Others (Purchase and disposal of investment securities etc.)

14.0

111.0

(78.0)(189.0)Cash Flow from Investment (inclusive of exploration investment)

510.0

565.0

380.0

(185.0)(Billions of Yen)

Approx.
380

Approx.
800

Approx.
895
Approx.
515* Including cashflow of Ichthys LNG Pty Ltd, the Ichthys Downstream IJV (Incorporated Joint Venture ), an equity method affiliate

Copyright © 2023 INPEX CORPORATION. All rights reserved.

28

Appendix

Other Income and Expenses(Billions of Yen)

2Q FY2022

2Q FY2023

Change% Change

Other income

143.2

163.8

20.5

14.3%

Interest income

16.5

44.3

27.8

168.6%

Dividend income

8.3

4.0

(4.3)

(51.8%)

101.4

8.7

(92.7)(91.4%)

6.7

-

(6.7)

(100.0%)Foreign exchange gain

-

6.2

6.2

-

Modification gain on financial assets and others

-

92.7

92.7

-

Other

10.1

7.7

(2.4)

(24.0%)

Other expenses

101.4

37.8

(63.6)(62.7%)

Interest expense

9.9

27.9

18.0

181.6%

-

0.8

0.8

-

Foreign exchange loss

1.2

-

(1.2)

(100.0%)Modification loss on financial assets and others

80.0

-

(80.0)(100.0%)

Other

10.2

9.0

(1.2)

(12.0%)

Equity in earnings of affiliates*
Gain on reversal of allowance for recoverable
accounts under production sharing

Provision for allowance for recoverable accounts
under production sharing* International Accounting Standards (IAS) 12 “Income Taxes” (amended in May 2021) has been applied to some foreign consolidated subsidiaries and foreign equity-method affiliates from FY2023, and the figures for 2Q FY2022
listed as reference to 2Q FY2023 have been revised.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

30

2Q FY2023
Net Sales(Billions of Yen)

Product

Japan

Other

Total

Copyright © 2023 INPEX CORPORATION. All rights reserved.

Change% Change

3.2

2.5

(0.7)

(22.7%)Natural Gas (excluding LPG)

102.7

132.3

29.6

28.8%

LPG

0.0

-

(0.0)

(100.0%)

Other

5.5

3.6

(1.9)

(34.3%)

Total

111.6

138.5

26.9

24.1%

Crude Oil

118.6

101.3

(17.3)(14.6%)Natural Gas (excluding LPG)

122.7

146.7

24.0

19.6%

LPG

0.2

2.8

2.5

967.2%

Total

241.6

250.9

9.2

3.8%

Crude Oil

68.3

44.1

(24.2)(35.5%)Natural Gas (excluding LPG)

14.7

15.5

0.7

5.3%

Other

0.1

0.1

(0.0)

(10.5%)

Total

83.2

59.7

(23.5)(28.3%)

Crude Oil

650.1

614.6

(35.4)(5.5%)Natural Gas (excluding LPG)

1.4

0.8

(0.5)

(39.8%)

Other

1.0

0.0

(1.0)

(99.3%)

Total

652.5

615.5

(37.0)(5.7%)

Crude Oil

2.7

3.6

0.9

34.9%

Natural Gas (excluding LPG)

0.7

0.9

0.2

30.2%

LPG

1.9

3.0

1.1

58.4%

Other

3.9

6.3

2.3

60.9%

Total

9.3

14.0

4.6

50.3%

Crude Oil

843.2

766.3

(76.9)(9.1%)Natural Gas (excluding LPG)

242.4

296.5

54.1

22.3%

LPG

2.1

5.8

3.6

166.5%

Other

10.6

10.1

(0.5)

(5.1%)

Total

1,098.4

1,078.7(19.6)(1.8%)

EuropeAbu Dhabi and others(Middle East, NIS etc.)

2Q FY2023

Crude OilAustralia & Southeast Asia
Oil & Gas

2Q FY2022

31

2Q FY2023
Sales Volume

Product

Japan

Oil & Gas

Abu Dhabi and others(Middle East, NIS etc.)

Other

Total

% Change

239

(13)

(5.2%)Natural Gas (excluding LPG)
(million cf)

53,384

48,338(5,046)(9.5%)

1-(1)(100.0%)

Crude Oil (thousand bbl)

8,853

9,273

421

4.8%

Natural Gas (excluding LPG)
(million cf)

174,261

187,484

13,223

7.6%

34

441

407

-

Crude Oil (thousand bbl)

5,040

3,863

(1,176)(23.3%)Natural Gas (excluding LPG)
(million cf)

5,254

8,278

3,024

57.5%

Crude Oil (thousand bbl)

56,81256,326(486)(0.9%)Natural Gas (excluding LPG)
(million cf)

5,677

5,284

(393)

(6.9%)Natural Gas (excluding LPG)
(million cf)

184

172

(12)

(6.7%)

Crude Oil (thousand bbl)

70,95669,701(1,255)(1.8%)Natural Gas (excluding LPG)
(million cf)

238,760

249,555

10,795

4.5%

34

441

407

-

LPG (thousand bbl)

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Change252

LPG (thousand bbl)

Europe2Q FY2023

Crude Oil (thousand bbl)

LPG (thousand bbl)

Australia &Southeast Asia

2Q FY2022

32

2Q FY2023
Net Production Volume

Product

Change% Change

492

471

(22)

(4.4%)Natural Gas (million cf)

18,79817,582(1,216)(6.5%)

Iodine(ton)

286

281

(5)

(1.7%)

Electric power generation (million kWh)

112

103

(9)

(7.7%)

Crude Oil (thousand bbl)

9,318

9,076

(242)

(2.6%)Natural Gas (million cf)

213,251

216,278

3,027

1.4%

Crude Oil (thousand bbl)

4,738

4,173

(565)

(11.9%)Natural Gas (million cf)

5,237

7,873

2,637

50.3%

Crude Oil (thousand bbl)

57,262

56,572(690)(1.2%)Natural Gas (million cf)

6,050

5,173

(877)

(14.5%)

Sulfur (thousand ton)

49

64

15

30.8%

Electric power generation (million kWh)

209

724

515

246.6%

Crude Oil (thousand bbl)

71,81170,292(1,519)(2.1%)Natural Gas (million cf)

243,336

246,906

3,570

1.5%

Iodine(ton)

286

281

(5)

(1.7%)

Sulfur (thousand ton)

49

64

15

30.8%

Electric power generation (million kWh)

320

827

507

158.1%

Australia &Southeast Asia
EuropeAbu Dhabi and others(Middle East, NIS etc.)
Others2Q FY2023

Crude Oil (thousand bbl)
Japan

Oil & Gas

2Q FY2022

Total* The volume of LPG produced overseas is included in “Crude Oil.”

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33