Note: The following report is an English translation of the Japanese-language original.

Presentation of Consolidated financial results
for the fiscal year ended March 31, 2012

May 14 , 2012

Japan Petroleum Exploration Co., Ltd.
copyright©2012 JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights reserved.

Cautionary statement

Any information contained herein with respect to JAPEX’s plans, estimates, strategies
and other statements that are not historical facts are forward-looking statements about
the future performance of JAPEX. Readers should be aware that actual results andevents may differ substantially from these projections due to various factors.
The provision of this document should not be construed as a solicitation for investment.
Copyright : All information contained herein is protected by copyright, and may not be
copied or reproduced without the prior consent of JAPEX.

Note: The following abbreviations are used within this document:
1H = First half (1Q-2Q)
2H = Second half (3Q-4Q)(a) = Actual result(e) = Estimate
Any inquiries about the information contained herein or other Investor Relations questions
should be directed to:Investor Relations Group, Media & Investor Relations Department,
Japan Petroleum Exploration Co., Ltd. (JAPEX)TEL: +81-3-6268-7111

2

Contents
１．Business Overview
２．Actual results for FY2012
３．Estimates for FY2013

3

Business Overview
President

Osamu Watanabe

4JAPEX’s Perception of the Business Environment
 An increasingly competitive
resource development environment

 Intense competition in thedomestic natural gas business Growing nationalism in oil and gas producing countries

 Aggressive natural gas infrastructure development bycompetitive companies

 Increasing global energy comsumption reflecting increasein polulation and an economic growth in Asia & Africa

Reinforcement of infrastructure development including
pipelines will be taken as a policy in view of shifting to natural
gas and of stable supply of energy, particularly after theGreat East Japan Earthquake.

 Active movement of international oil comapies andnational oil companies purchacing conventional andunconventional resourses interests

 Intense competition for LNG procurement acompaning
the global outlook of increasing in demand Growing social awarenesstoward environmental issues

Trends in energy prices Marked increase in crude oil prices from 2004; Record
high in July 2008

 Commonly held GHG （Greenhouse Gas) reduction
goal leading up to 2050

 A sharp drop after July 2008; indications of a steadyrecovery. (Increasing volatility) GHG reduction efforts triggering new opportunities forbusiness growth Uncertain trend in energy prices influenced by politicalunrest in the Middle East and by fear for global economic
slowdown

 New energy and renewable energy will be introduced
and promoted in Japan as a policy with Feed-in Tariff5Corporate Vision and Basic Strategies for JAPEX Expansion
While positioning E&P at the Company’s main activities, endeavor to increase business opportunities byshifting to E&P activities overseas and pursuing new investment in domestic natural gas as well as
environment and innovative technology as the means to help realize business expansion

Growth scenario under the new medium-term business plan
E&P
E&P
businessbusiness

Increase earnings
Increase earnings
opportunities
opportunities
throughthroughnewnewoverseas
overseas
investment
investment

Shift investment overseas
Overseas900

Overseas

1,700
Domestic

FY07～FY11

1,100

FY12～FY16

270

280

billion yen

billion yen

Domestic

1,800

Target for production volume：70,000 BOE/
FY
BOE/D (by around the end of FY2016)
Target for proved reserves： 450million
FY
450million BOE (as of the end of FY2021)

overseas
overseasexploration
exploration
investment
investment

Domestic
Domestic
naturalnaturalgas
gasbusinessbusiness
Cultivate natural gas

Cultivatenatural gas
demanddemandEngage in wideEngage in wideranging activities
ranging activities
including the upgrade
including the upgradeof infrastructureof infrastructure

Environment
Environment
andandinnovative
innovativetechnology
technology
businessbusiness
Acceleratelarge-scale

Accelerate(CCS, MH)large-scale
project(CCS,MH) project
activities
activities
Cultivate
new fields
Cultivate new fields
including renewable
including renewableenergyenergy6TimeFurther business growth

ReturnMaximize
Maximizethe
thevalue
valueofof
existing
overseas
existing overseasassets
assetsMaximizethevalue
Maximizethe valueofof
existing
domestic
existing
domestic
assetsassetsPromote long-term
Promote long-term
development throughdevelopment throughProduction volume and Proved reserves■ Actual production volume of FY2012: 38,000 BOE/D⇒ Decreased 5% YOY. Main reason was the change of conversion factor* for natural gas.
■ Actual proved reserves of FY2012:
224 million BOE⇒ Decreased 13% YOY. Main reasons were the decrease due to production and the change of conversion factor.
■ Aim to achieve the medium-term targets by ensuring progress in the Canada Oil Sands Expansion
Project and Garraf Project of Iraq as well as the acquisition of new projects.

Production volume
70,000BOE/D

40,000＊As for oil equivalent production volume and proved reserves, JAPEX has
been disclosing data that defines 5.6mcf of natural gas=1bbl of oil
equivalent ≪1,000m3＝1kl≫.

70,000

As for the the data after FY2012, we announce to change the conversion
factor to 5.8mcf of natural gas=1bbl of oil equivalent ≪1,033m3＝1kl≫
that Petroleum Resources Management System（PRMS）recommends.

38,000Please note that the data before FY2011 are indicated based on theconventional conversion factor, even though.
FY2011FY2012FY2016(e)Proved reserves

million 400
BOE

25 7

FY2011

Proved reserves

450

millionBOE

223

FY2012

Domestic

350
300
250
200
150
100
50
0

272
225

Note) “ Production volume” and “Proved Reserves” are equivalent to JAPEX group’s interest.

7

59

254
49

257
49

213

205

208

185

FY2009FY2010FY2011FY201273
152
FY2008FY2021(e)Overseas
223
39

$140

¥120

$130

¥115

$120

¥110

$110

$ denominated price $/bbl (left axis)

¥105

$100

¥100

$90

¥95

$80

¥90

$70

¥85

Exchange rate \/$(right axis)

$60

¥80

$50

¥75

$40

¥70
2009-01
2009-022009-032009-04
2009-05
2009-06
2009-072009-08
2009-09
2009-10
2009-11
2009-122010-01
2010-022010-032010-04
2010-05
2010-06
2010-072010-08
2010-092010-10
2010-112010-122011-01
2011-02
2011-03
2011-04
2011-05
2011-06
2011-072011-08
2011-09
2011-10
2011-11
2011-12
2012-01
2012-022012-032012-04[Price] $denominated $/bbl

Trends in Crude oil prices and Foreign exchange rates

Japan Crude Cocktail (JCC) Price in the first 20 days of April 2012
on a prompt report basis : USD 126.54/bbl

Yen

82.80/USD
8

Actual results for FY2012 and Estimate for FY2013 (Highlight)
Billion ￥
60

235

230.6

■ Actual results for FY2012 ( vs FY2011)[ Billion ￥]FY2011(a)

FY2012(a)change230

Net Sales

199.6

230.6

30.9

16%

50

225

Operating income

13.8

15.0

1.2

9%

45

220

Ordinary income

17.1

22.1

5.0

29%

Net income

10.0

17.0

7.0

70%

82.69

112.43

29.74

36%

86.24

78.93

(7.31)(8%)

55

Net Sales (right axis)

214.6

40

215

35

210

30

205

Billion ￥

200

25

199.6

20
15
10
5

195

22.1
17.1

15.0

13.8

17.0

16.8 16.5

185
10.0

10.0

190

180
175

0
FY2011FY2012

Operating income (left axis)

FY2013

JCC price
USD/bblExchange rate
Yen/USD■ Estimate for FY2013 ( vs FY2012)
FY2012(a)

FY2013(e)changeNet Sales

230.6

214.6

(16.0)(7%)

Operating income

15.0

10.0

(5.0)

(33%)

Ordinary income

22.1

16.8

(5.3)

(24%)

Net income

17.0

16.5

(0.5)

(3%)

112.43100.00(12.43)

(11%)

78.93

80.00

1.07

1%

[ Billion ￥]JCC price
USD/bbl(e)

Exchange rate

Ordinary income (left axis)

Yen/USDNet income (left axis)

9Domestic exploration plan for FY2013●Extention well: 4wells■Seismic survey : 2 sites●Extention well drilling schedule
FY2013
Total
Depth

1Q
4

Numanohata(T1)East C2

2,100mAkebono(T1) A5

1,700mKatakai SK-29D

4,830m(Katakai SK-29D-1)

5

6

2Q

3Q

4Q

8

9 10 11 12 1

2

7

3

Akebono（T1) A5 (1,700m)
Numanohata(T1) East C2 (2,100m)(4,940m)

Katakai R45,395mContinued■Geophysical prospecting survey plan : 2 sites
2D seismic survey

47km in Akita Prefecture (Oga)

2D seismic survey

21km in Yamagata Prefecture (Southern Mt. Chokai)

Oga 2D (47km)
Southern Mt. Chokai 2D (21km)◇Result for FY2012
Katakai SK-29D main well (4,830m)

FY2012
Total
Depth

1Q

2Q

3Q

Katakai SK-29D-1 branch well (4,940m)

4Q

4 5 6 7 8 9 10 11 12 1 2 3

Akeno SK-1D
Exploration well

5,265m

Succeeded

10

Katakai R4 (5,395m)

CAPEX plan for FY2013[ Billion ￥]

FY09

FY10

FY11

FY12

FY13
(e)

CAPEX

30.9

28.8

21.9

23.8

33.4

Depreciation
andamortization

21.5

23.2

24.5

23.9

18.0

Billion ￥

40

45

35

40

30

Domestic CAPEX

35

0.7
4.7

25

Main items of CAPEX for FY2013

Billion ￥20¥ 7.8 billion

15◆ Upgrading of production facilities

10

Overseas CAPEX ¥ 25.6 billion◆ Iraq:-Development of Garraf oil field◆ Canada:-Improvement of production facility for the oil sandproject◆ Indonesia:-Development of gas field (Ache Block A)

11

23.2

21.5
30.2

24.5
3.1

30

23.9
7.8

25.6

25

18.0 20
15

24.1
18.8

10

15.9

5

7.8

-

5
-

FY09

FY10

CAPEX（domestic）

FY11
CAPEX（overseas）

FY12

FY13(e)Depreciation and amortization

Business Overview

Overseas business : Basic strategy
Oil sands development(production & prepare for development)

Sakhalin 1 Project(production)

CanadaSakhalin

Iraq : Garraf oil field(development)

Middle East
North Africa

Southeast Asia

-Kangean Block (production & development)-Ache Block A (development & exploration)-Buton (exploration)-Universe Gas & Oil (production)-Japan CBM (exploration)

Legend5 Strategic regions
Blocks in which our consolidated subsidiaries,
equity-method affiliates, etc. hold interest.

12

Business Overview

Current status of overseas business ① Canada oil sands
Project company
Operator■ Areas in which JACOS holds interest in oil sands leases

Canada Oil Sands Co., Ltd. (CANOS)(86.64% owned by JAPEX )Japan Canada Oil Sands Ltd. (JACOS)(Local subsidiary, wholly owned by CANOS)

BlockInterest

Hangingstone 3.75 section-Producing around 7,000 bbl/d-Cumulative production of 26 million bbl(as of end-December, 2011)

Expansion project of undeveloped part ofHangingstone area
-Additional production of 30,000 bbl/dat the maximum

100%

75%

Schedule
Apr. 2010

Applied development approvalStart FEED

Winter of2012 to 2013
1st Half of2016(4th Quarter)
Make FID after acquiring development approvalStart construction■ Contingent resources of undeveloped oil sands areas
held by JACOS : 1,717 million bbl (as of end-December 2008)■ Areas where oil sand resources were evaluated:

Plan to commence production

The Hangingstone area, the Chard area, the Corner area and the Thornbury area
were evaluated. The evaluated areas consist of solely owned and jointly owned
areas, are 788.4km2 (gross) or 373.4km2 (net). Bitumen also exists in the Liegearea, but there is no bitumen development plan at present due to the subsurface
conditions of its existence.

13

Business Overview

Current status of overseas business ② Iraq
Garraf development projectContractors

PETRONAS(Operator)

JAPEX

North Oil
Company(NOC)

Contract Type

Development and Production Service Contract

Counterparty

South Oil Company (SOC)

Payment share

60%

40％

-

Contract term

20 years（may be extended for maximum 5 years）

Participating interest

45％

30％

25％

2010
2011
2012
|
2016

2017

The contract effect on Feb.10, 2010
Drilling campaign commenced
in June 2011
Commence initial production at

50,000 bbl/dIncrease production gradually

Achieve plateau production target of

230,000 bbl/d

Garraf■ Expected cumulative production during
the contract term : around 1.3 billion bbl

14

Business Overview

Current status of overseas business ③ Sakhalin 1 Project
Sakhalin 1 Consortium

Interest

Exxon Neftegas Ltd.

30%

Sakhalin Oil and Gas Development Co., Ltd. (SODECO)

30%

OdoptuMinister of Economy, Trade and Industry : 50.00%
JAPEX : 14.46%

ITOCHU Corp. : 14.46%

Marubeni Corp. : 11.68%

INPEX : 5.74%

ITOCHU Oil Exploration Co., Ltd. : 3.66%

ONGC

20%

SMNG-Shelf

11.5%

Rosneft - Astra

8.5%

Oct. 2005

Arkutun-Dagi

Chayvo oil and gas field

Commenced production of crude oil

Oct. 2006

Commenced exports of Sokol crude

Feb. 2007

Achieved peak gross production target (250,000 bbl/d)Jan. 2008

Achieved cumulative production of 100 million bbl

Sep. 20102014

Odoptu oil and gas field

ChayvoCommenced production of crude oil

Arkutun-Dagi oil and gas field
Expected production of crude oil

15

Business Overview

Current status of overseas business ④ Indonesia: Kangean Block
Jakarta

Project
company

SurabayaJava Island

Kangean Energy Indonesia Ltd. (KEI)
and two other companies.
(Equity-method affiliates)

Pagerungan Utara oil field (Development)

West Kangean gas field (Exploration)
Kangean Island

Pagerungan gas field (Production)
East Java Pipeline

SepanｊSepanｊang Island oil field(Production suspended)

TSB gas field (Development)
To Surabaya

Block

Kangean Block (offshore East Java）

Interest

25%

Operator

KEI■ Current gross production : Crude oil equivalent of around 5,000 boe/d.
■ TSB gas field : Plan to commence production of 300 million cf/d (around 50,000 boe/d in crude oil
equivalent) in end-May 2012.
■ Plan to expand gross production to around 55,000 boe/d through the above additional production.
■ Production Sharing Contract (PSC): Effective till 2030.

16

Business Overview

Current status of overseas business ⑤ Indonesia: Block A Aceh
Project
company

Japex Block A Ltd.

Interest

16.67%
Block A Aceh

Block

Block A Aceh(northern Sumatra)

OperatorGrossproduction

Medco
Around 100 million cf/d(around 20,000 boe/d incrude oil equivalent ）Jakarta2010

Approved extension PSC (Contract term : 20 years from September 1, 2011 )2011

After concluding extension PSC ,start development to commence gas production

2014

Alur Rambong gas field
Julu Rayeu gas field
Alur Siwah gas field17

Business Overview

Current status of overseas business ⑥ Indonesia: Buton Block
Project company

Japex Buton Ltd.

Block

Buton Block (onshore/offshore block on Buton Island, Southeast Sulawesi)

Interest

40%

2008

Airborne gravity and magnetic surveys
2D seismic surveys

2009

Selected the exploration well structure

2012

Drilling 1st exploration well (Benteng-1) with total depth 3,200m

exploration well
(Benteng-1)

Jakarta

Buton Block18

Actual results for FY2012
Executive Vice President

Hiroshi Sato

19

Actual results for FY2012 ( Highlight )[ Million ￥]FY2012FY2011
ActualInitialestimate(May 2011)

Revisedestimate ①(Nov. 2011)

Revisedestimate ②(Feb. 2012)

Actual

199,651

223,479

229,031226,227

230,638

Operating income

13,84911,7578,365

12,214

15,045

Ordinary income

17,122

15,634

12,974

17,932

22,159Net income

10,01011,528

10,17513,80517,027

Net Sales

JCC price

USD/bbl

82.69

90.00

105.66111.13112.43

Exchange rate

Yen/USD

86.24

85.00

80.52

79.69

78.93

Bitumen price

CAD/bbl

48.32

47.82

46.25

49.71

49.81

Exchange rate

Yen/CAD

81.47

85.00

80.00

76.22

76.22

Initial estimate (May 2011)

Revised estimate ① (Nov. 2011)【＋】 Rise in crude oil prices【－】 Downward revision of the production and sales plans for natural gas & crude oil

Revised estimate ① (Nov. 2011)

Revised estimate ② (Feb. 2012)【＋】 Rise in crude oil prices 【＋】Decrease in exploration expenses 【＋】Increase in non-operating income (expenses)

Revised estimate ② (Feb. 2012)

Actual results【＋】Rise in natural gas prices & crude oil prices 【＋】Increase in demand 【－】 Increase in non-operating income (expenses)
Ordinary income ¥ 22.1 billion (+¥4.2billion )Net income ¥17.0 billion (+¥3.2billion )20

Actual sales of Natural gas in FY2012(vs FY2011)
FY2011Natural gas:
Of which,
Domestically produced gas:

FY2012

1H (a)

Full (a)1H (a)

Full (a)change1H

Full

Sales volume

million M3

696

1,553

742

1,730

45

176

Net sales

million ￥27,03961,09031,17074,9574,130

13,867

Sales volume

million M3

529

1,185

522

1,194

(7)

9

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Million M3

1,800

Natural gas(supplied by gas pipeline )

1,600
1,400

1,730

Sales volume （total）
Of which, domestically produced gas

1,553

1,200
1,000

1,185

1,194

Sales volume increased by 176 million M3 (+11%) vs FY11
-Increase in demand for utility gas customers and industrial users

800

Net sales increased by ¥13.8 billion (+22%) vs FY11

600

-Increase in demand (+176 million M3 (+11%))-Rise in sales prices

400
200
FY2011FY201221

Actual sales of Crude oil in FY2012 (vs FY2011)
FY 2011

Sales volume : Thousand KL
Net sales : Million ￥1H (a)

changeFY 2012Full (a)1H (a)

Full (a)1H

FullSales volume

946

1,899

896

1,778

(50)

(120)

Net sales

38,242

77,62946,64989,891

8,406

12,262

Domestically produced
crude oil:

Sales volume

246

547

239

529

（6)

(18)

Net sales

11,08325,777

13,92530,351

2,841

4,573

Overseas subsidiary
crude oil:

Sales volume

3

5

1

2

(1)

(2)

Net sales

117

187

84

128

(33)

(59)

Sales volume

197

409

175

382

(21)

(26)

Net sales

5,512

10,141

4,207

9,137

(1,304)(1,003)

JCC price

USD/bbl

78.95

82.69

112.38112.43

33.43

29.74

Exchange rate

Yen/USD

90.71

86.24

81.07

78.93

(9.64)(7.31)

Bitumen price

CAD/bbl

52.98

48.32

45.70

49.81

(7.28)

1.49

Exchange rate

Yen/CAD

83.76

81.47

83.38

76.22

(0.38)(5.25)

Crude oil:
Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions

Domestically produced crude oil : 【＋】 Rise in crude oil prices

FY2012

529

2

382

Bitumen : 【－】Decrease in production volume and Strong yen

FY2011

547

5

409

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include
purchased crude oil. Royalty is excluded in the net sales and price of Bitumen.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex(U.S.) Corp., an overseas consolidated subsidiary.

22

Thousand- KL

200

Domestically produced crude oil

400

600

800

Overseas subsidiary crude oil

1,000
Bitumen

Actual results for FY2012 (vs FY2011)≪Causes of increase(+) or decrease(-) ≫FY2011(a)

FY2012(a)changeNet sales

199,651

230,638

30,986Gross profit

54,73256,278

1,545

Exploration expenses

9,798

7,805

(1,992)

SG&A expenses

31,08433,426

2,342[ Million ￥]Operating income

13,84915,045

1,195

Non-operating income(expenses)

3,272

7,114

3,842

Ordinary income

17,122

22,1595,037

Extraordinary income(losses)(4,166)

311

4,477

2,161

4,746

2,585

783

696

(86)

10,01017,027

7,016

Income taxes
Minority interests in income
Net income

23

Gross profit
Domestic crude oil and natural gas+ ¥5.8 billion
LNG substitution expence - ¥2.3 billion
Transportation fee of natural gas- ¥2.0 billion

Exploration expenses
Domestic exploration+ ¥1.8 billion
Non-operating income (expenses)
Dividends income
Gain on sales of securities+ ¥2.4 billion+ ¥0.7 billion

Extraordinary income (losses)(Impact on FY2011）

Loss on adjustment for changes of accounting
standard for asset retirement obligations+ ¥2.3 billion
Loss on Great East Japan Earthquake+ ¥1.5 billion(Impact on FY2012）

Insurance income regarding Great East Japan
Earthquake+ ¥0.6 billion

Estimates for FY2013
Executive Vice President

Hiroshi Sato24

Estimates for FY2013 (Point)
FY2013

FY2012[ Million ￥]change1H (a)

Full (a)1H (e)

Full (e)1H

104,596

230,638

95,823

214,653(8,773)(15,985)

Operating income

6,219

15,045

4,858

10,003(1,361)(5,042)

Ordinary income

7,887

22,1595,503

16,819(2,385)(5,341)

Net income

6,333

17,027

6,441

16,526107(501)

Net Sales

Full

JCC price

USD/bbl112.38112.43100.00100.00(12.38)(12.43)

Exchange rate

Yen/USD

81.07

78.93

80.00

80.00

(1.07)

1.07

Bitumen price

CAD/bbl

45.70

49.81

54.12

52.91

8.42

3.10

Exchange rate

Yen/CAD

83.38

76.22

80.00

80.00

(3.38)

3.78

Point

FY2013
FY2013 vs FY2012

Operating income Exploration expenses-¥ 6.0 billion

 Non-operating income(expenses)-¥ 0.3 billion

 Extraordinary income(losses)+¥ 2.0 billion

 Income taxes+¥ 2.7 billion-¥ 5.0 billion
Ordinary income-¥ 5.3 billion
Net income-¥ 0.5 billion

25： Dividends income

Estimated Natural gas sales in FY2013
FY2013

FY2012Natural gas:
Of which,
Domestically produced gas:

1H (a)

Full (a)1H (e)

Full (e)change1H

Full

Sales volume

Million M3

742

1,730

698

1,501

(45)

(229)

Net sales

Million ￥31,17074,957

31,38567,225215(7,733)

Sales volume

Million M3

522

1,194

519

1,072

(4)

(123)

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Million M3

1,800
1,600

Natural gas( supplied by gas pipeline )

1,730

1,400

Sales volume （total）
1,501

Of which, domestically produced gas

1,200
1,000

1,194
1,072

800

Sales volume decreased by 229 million M3 (-13%) vs FY2012-Decrease in demand for utility gas customers and industrial users

600

Net sales decreased by ¥7.7 billion (-10%) vs FY2012

400-Decrease in sales volume ( -229 million M3 (-13%))200
FY2012FY201326

Estimated Crude oil sales in FY2013
FY 2012

Sales volume : Thousand KL
Net sales : Million ￥1H (a)

changeFY 20131H (e)

Full (a)Full (e)1H

FullSales volume

896

1,778

804

1,763

(92)

(15)

Net sales

46,64989,891

37,57781,603(9,072)(8,288)Domestically produced
crude oil:

Sales volume

239

529

251

489

11

(40)

Net sales

13,92530,351

12,92025,146(1,006)(5,205)

Overseas subsidiary
crude oil:

Sales volume

1

2

1

2

(1)

(1)

Net sales

84

128

48

91

(36)

(37)

Sales volume

175

382

173

380

(3)

(3)

Net sales

4,207

9,137

4,705

10,103498

966

JCC price

USD/bbl112.38112.43100.00100.00(12.38)(12.43)

Exchange rate

Yen/USD

81.07

78.93

80.00

80.00

(1.07)

1.07

Bitumen price

CAD/bbl

45.70

49.81

54.12

52.91

8.42

3.10

Exchange rate

Yen/CAD

83.38

76.22

80.00

80.00

(3.38)

3.78

Crude oil:
Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions

Domestically produced crude oil : 【－】Fall in crude oil prices

FY2013489

Bitumen : 【＋】Increase in sales price and Weakening of the yen

FY2012

529

ThousandKL
Sales volume and net sales of “Domestically produced crude oil” stated herein do not include
purchased crude oil. Royalty is excluded in the net sales and price of Bitumen.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex(U.S.) Corp., an overseas consolidated subsidiary.

27

200

Domestically produced crude oil

2

380
2

400

382
600

800

Overseas subsidiary crude oil

1,000
BitumenEstimates for FY2013≪Causes of increase(+) or decrease(-) ≫FY2012(a)

FY2013(e)changeNet sales

230,638

214,653(15,985)

Gross profit

56,27854,865(1,413)

Exploration expenses

7,805

13,896

6,090

SG&A expenses

33,42630,966(2,461)

Operating income

15,045

10,003(5,042)Non-operating income(expenses)

7,114

6,816

(299)

Ordinary income

22,15916,819(5,341)

311

2,378

2,067

4,746

1,969

(2,778)

696

702

5

17,027

16,526(501)[ Million ￥]Extraordinary income(losses)
Income taxes
Minority interests in income
Net income

28

Gross profit
Domestic crude oil and natural gas- ¥4.0 billion
Transportation on consignment income+ ¥2.1 billion

Exploration expenses
Domestic exploration
Overseas exploration- ¥4.2 billion- ¥1.8 billion

Non-operating income (expenses)
Dividends income- ¥0.5 billion

Oil price and Exchange rate assumptions and impact on profits
Assumption

Impact on Profits

JCC price

Exchange rate

Bitumen price

USD 100 /bbl

Yen 80 /USD

CAD 52.91 /bbl
（ Yen 80 /CAD ）USD 1 /bbl increase in
crude oil prices would pushprofits up by...

A weakening in the yen to

Yen 5/USD would pushprofits up by…

CAD 1/bbl increase inbitumen prices would pushprofits up by…

Operating income

200 million Yen

890 million Yen( 2.38 billiion CAD )190 million Yen

Net income

130 million Yen

620 million Yen(2.09 billion CAD )170 million Yen

FY2012FY2013change1H (a)

2H (a)

Full (a)1H (e)

2H (e)

Full (e)USD/bbl112.38112.48112.43100.00100.00100.00(12.43)

Exchange rate

Yen / USD

81.07

77.17

78.93

80.00

80.00

80.00

1.07

Bitumen price

CAD/bbl

45.70

43.98

49.81

54.12

51.89

52.91

3.01

Exchange rate

Yen /CAD

83.38

81.47

76.22

80.00

80.00

80.00

3.78

JCC priceNote1: Royalty is excluded in “Bitumen price”.
Note2: In addition to the impact of exchange rate fluctuations shown on the above, translation adjustments of foreigncurrency- denominated receivables and payables also occur.
Actual profits are influenced by a variety of other factors besides crude oil prices and exchange rates.

29