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

Consolidated Financial Results
for the Six Months Ended September 30, 2014
＜Supplementary Material＞
November 7 , 2014

Japan Petroleum Exploration Co., Ltd.

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 prior consent of JAPEX.
Note: Abbreviations used herein are as follows:
1H = First half (1Q-2Q)
2H = Second half (3Q-4Q)(a) = Actual result(e) = Estimate
FY = Fiscal Year (FY2014, for instance, means 12 months ended March 31, 2014)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:Investor Relations Group,Media & Investor Relations Department,
Japan Petroleum Exploration Co., Ltd.
Tokyo, JAPANTEL: +81-3-6268-7111

2

Trends in Crude Oil Prices and Foreign Exchange Rate
$130

¥125

$120

¥120

$115

¥115

$110

¥110

$105

¥105

$100

¥100

$95

¥95

$90

¥90

$85

¥85

$80
$75

Exchange rate ¥/$(right axis)

¥80
¥75

$70

¥70

Japan Crude Cocktail (JCC) Price in the first 10 days of October 2014
on a prompt report basis : US$ 102.81/bbl JP¥ 108.49/US$
3[foreign exchange rate: JP¥/US$]

crude oil price US$/bbl（left axis）

2011-09
2011-10
2011-11
2011-12
2012-01
2012-022012-032012-04
2012-05
2012-06
2012-072012-08
2012-09
2012-10
2012-11
2012-122013-012013-022013-032013-04
2013-05
2013-06
2013-072013-08
2013-09
2013-10
2013-112013-12
2014-01
2014-022014-032014-04
2014-05
2014-06
2014-072014-08
2014-09[crude oil price:US$/bbl]

$125

¥130

Revised Estimates for FY2015 (Highlight)
FY2014FY2015

Change1H (a)②

InitialEstimate
Full (e)May12’14③

RevisedEstimate
Full (e)Nov.7’14④

1H（②-①）

Full（④-③）

157.5

146.8

323.6

324.3

▲10.6

+0.7

24.6

14.3

15.1

33.0

34.6

+0.7

+1.6

Ordinary income

43.820.1

24.7

41.4

48.8

+4.5

+7.3

Net income（loss)

29.0

13.5

18.8

27.3

35.3

+5.2

+7.9

US$/bbl110.51100.00110.06100.00101.27+10.06+1.27

Exchange rate Yen/bbl

99.31

100.00102.13100.00103.43

+2.13

+3.43

Bitumen price CA$/bbl

51.67

54.42

58.93

54.15

58.16

+4.51+4.01

Exchange rate Yen/CA$

98.42

95.00

95.04

95.00

95.00

+0.04

－Initial
Estimate
1H(e)

276.5

Operating income

Billion ￥Full(a)Net sales

JCC price

Revised Estimate
Full (e) Nov.7’14

May12’14①

1Q (a)

2Q (a)

3Q (e)

4Q (e)

JCC price

US$/bbl109.51110.70100.0085.00

Exchange rate

Yen/US$102.27101.96105.00105.004

1H Result

Actual Financial Results for 1H FY2015 (Summary)Billion ￥Net Sales
Operating income

1H (a)(May12 ‘14)

FY2015
1H (a)vs Initial
Estimate%

120.2

157.5

146.8

▲6%

11.5

14.3

15.1

Ordinary
income

19.9

20.1

24.7

Net income

15.8

13.5

18.8

JCC price
US$/bblchangeFY20151H (e)FY2014108.53100.0097.58

Bitumen price
CA$/bbl

52.22

54.42

58.93

Exchange rate
JP¥/CA$94.01

95.00

95.04

100.00175+22%+38%

Billion ￥35Net Sales (left axis)

157.5
146.8

150+5%
125

120.2
24.7

Ordinary income
Net income

100201515.8
14.3

102.13
50

18.8

20.1

75

15.1
13.5

10

11.5

525

Main points of difference with initial estimate and FY2015▲ ¥10.6 billion□ Net Sales□ Operating income +¥ 0.7 billion□ Ordinary income+¥ 4.5 billion Equity in losses of affiliates +¥ 3.8 billion□ Net income+¥ 5.2 billion

5030

25

right axis
Operating income

19.9

110.06

Exchange rate
JP¥/US$Billion ￥FY2014 1H(a)FY2015 1H(e)FY2015 1H(a)01H Result

Actual Sales of Natural Gas in 1H FY2015 (vs FY2014 )Overseas produced gas

Sales volume : Million M3
Net sales : Million ￥Natural gas

Sales
volumeFY2014
1H (a)FY2015
1H (a)

change614

775+160

Million M3

Domestically produced gas

600

196
37Net sales

31,883 37,458+5,575400

Breakdown of natural gas sales

Domesticallyproduced gas

Overseas
produced gas

SalesvolumeSales
volume408

37382

196

▲26200408382

FY14 1H

FY15 1H+159-Sales volume of “Domestically produced gas” stated herein does not include purchased gas. “Overseas produced gas” stated herein areamounts of Japex (U.S.) Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

61H Result

Actual Sales of Crude Oil in 1H FY2015 ( vs FY2014 )Sales volume : Thousand KL
Net sales : Million ￥FY2014

FY2015

1H(a)

1H(a)

changeSales volume877

1,107+230

Net sales

53,91973,500+19,581

Domestically
produced crude oil:

Sales volume

188

190+2

Net sales

12,82813,768+940

Overseas subsidiary
crude oil:

Sales volume8273+265

Net sales

478

18,568+18,090

Sales volume

165

152

▲13Net sales

5,110

5,382+272

US$/bbl108.53110.06+1.53

Exchange rateJP¥ / US$

97.58

102.13+4.55

Bitumen price

CA$/bbl

52.22

58.93

+6.71

Exchange rateJP¥ / CA$

94.01

95.04

+1.03

Crude oil:

Breakdown of equity oil

Bitumen:

Rise in sales priceCommencement of sales ofcrude oil from Garraf oil field

Rise in sales price

Oil price and Exchange rate assumptions
JCC price

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 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd. and Japex
Garraf Ltd.).

7

1H Result

Actual Financial Results for 1H FY2015 (vs FY2014)
FY2014FY2015

1H(a)

1H(a)

Net sales

120,281

146,850+26,568

Gross profit

32,161

34,515+2,354

Exploration expenses

5,723

3,260

▲2,463[ Million ￥]Change

SG&A expenses

14,893

16,143+1,250

Operating income

11,543

15,110+3,567Non-operating income(expenses)

8,358

9,625+1,267

Ordinary income

19,902

24,736+4,834

213+11

3,983

4,781+798

38

1,095+1,057

15,883

18,873+2,990

Extraordinary income(losses)
Income taxes
Minority interests inincome
Net income

8Causes of increase(+) or decrease(▲)
Gross profit
Domestic crude oiland natural gas▲¥0.8billion

Overseas consolidated
subsidiaries+¥3.5 billion

Exploration expenses
Domestic exploration+3.0billion
Overseas exploration▲0.5billion

Non-operating income (expenses)
Share of profit of entities accounted
for using equity method +¥3.1 billion
Provision for loss inoverseas investment▲¥0.7 billion

other▲ ¥1.2 billion

Revised Full Year Estimates

Revised Estimates in FY2015 (Summary)
InitialEstimate
Full(e)May12’14[Billion ￥]RevisedEstimate
Full(e)Nov.7’14

ChangeBillion￥
VS Initial
Estimat (%) 350.0

change

323.6

324.3

+0.7+0%Operating income

33.0

34.6

+1.6+4%

Ordinary income

41.4

48.8

+7.3 +17%

Net income

27.3

35.3

+7.9 +29%

100.00101.27

Net Sales

JCC price

US$/bblExchange rate JP¥/US$

100.00103.43Bitumen price

CA$/bbl

54.15

58.16

Exchange rate

JP¥/CA$

95.00

95.00

+1.27
+3.43
+4.01
－1Q (a)2Q (a)

3Q (e)

4Q (e)

JCC price109.51110.70100.0085.00

CA$/bbl

56.57

61.84

324.3

right axis
Operating income

48.8

Net income

250.0

200.0

60.0

50.0

Ordinary income

40.0

41.4
34.6

33.0

35.3

30.0

150.0

20.0

100.0

10.0

50.0
Bitumen price

323.6

27.3

Revised Estimate
US$/bbl

300.0

Billion￥Net Sales (left axis)

55.83

59.27

InitialInitialestimate(e)Mar.12’14
estimate(May 2014)
Main points of difference with initial estimate causes of increase(+) or decrease(▲)□Operating income +¥1.6 billion Gross profit +¥2.3 billion , Exploration expenses ▲¥0.8 billion□Ordinary income +¥7.3 billion Share of profit of entities accounted for using equity method +¥6.2 billion□Net income+¥7.9 billion

9

Revisedestimate
Revised(e)Nov.7’14estimate(Nov. 2014)0.0

Revised Full Year Estimates

Revised Estimated Natural Gas Sales in FY2015 (vs Initial Estimate)
Overseas produced gas

Sales volume : Million M3Net sales : Million ￥Initial Estimate
Full(e)May12’14Revised Estimate
Full(e)Nov.7’14

changeMillion M3

Domestically produced gas

1,400

1,200

Natural gas ：Salesvolume1,684

1,712+28Net
sales

80,16985,337+5,168

Breakdown of equity natural gas

Domestically
produced gas:
Overseassubsidiary
produced gas:

Sales
volumeSales
volume

1,000

417

415

801

821

800

600

801

821

+20400200417415▲1-Initial estimate
Full

Revised Estimate
Full

Sales volume of “Domestically produced gas” stated herein does not include purchased gas. “Overseas produced gas” stated herein are amounts ofJapex (U.S.) Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

10Revised Full Year Estimates

Revised Estimated Crude Oil Sales in FY2015 (vs FY2015)
Initial Estimate Revised Estimate
Full(e)Full(e)Nov.7’14
May12’14

Sales volume : Thousand KL
Net sales : Million ￥changeSales volume

2,695

2,517

▲178

Net sales

158,248

152,258▲5,990

Domestically produced
crude oil:

Sales volume391

378▲13Net sales

25,17625,524+348

Overseas subsidiary
crude oil:

Sales volume

1,223

1,059

▲164Net sales

73,94863,496▲10,452

Sales volume330

330+0Net sales

10,666

11,471+805

Crude oil:
Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

US$/bbl

100.00101.27+1.27

Exchange rate

JP¥/US$

100.00103.43+3.43

Bitumen price

CA$/bbl

54.15

58.16

+4.01

Exchange rate

JP¥/CA$

95.00

95.00

－Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil. Royalty isexcluded in the net sales and price of Bitumen. Sales volume and net sales of “Overseas subsidiary crude oil” stated herein areamounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd. and Japex Garraf Ltd.).

11Revised Full Year Estimates

Revised Estimate for FY2015 (vs Initial Estimate)
Million ￥Initial Estimate
Full(e)May12’14

Revised Estimate
Full(e)Nov.7’14

changeNet sales

323,633

324,378+745

Gross profit

70,611

72,981+2,371

Exploration expenses

3,892

4,712+820

SG&A expenses

33,64233,588▲54

Operating income

33,077

34,681+1,605

Non-operating
income8,393

14,138+5,745

Ordinary income

41,46948,819+7,350▲1▲10▲9Income taxes12,195

11,000▲1,195

Minority interests inincome

1,895

2,436+541

Net income

27,37935,374+7,996

Extraordinary income

12Causes of increase(+) or decrease(▲)
Gross profit
Domestic crude oil and natural gas+¥1.3billion
Overseas consolidated subsidiaries+¥0.8billion

Exploration expenses
Domestic exploration ▲¥0.5billion
Overseas exploration ▲¥0.3billion

Non-operating income (losses)
Equity in earnings+¥6.2billion
Allowance for overseas▲¥0.6billion
investment loss

Revised Full Year Estimates

Revised Estimated Natural Gas Sales in FY2015 (vs FY2014)
Sales volume : Million M3
Net sales: Million ￥Naturalgas

Sales
volumeNet sales

FY 2014
Full(a)

1,418
71,584

FY 2015
RevisedEstimate
Full(e)Nov.7’14

1,712
85,337

Million M3

1,400

Sales
Volume853

Domestically produced gas
Sales volume

Change1,200+293+13,753

1,000

167

415

800

600

Breakdown of equity natural gas
Domestically
producedgas

Overseas produced gas
Sales volume821▲33400853821

FY2014Full(a)

FY2015Full(e)200

Overseas
producedgas

Sales
volume167415+248-Sales volume of “Domestically produced gas” stated herein does not include purchased gas. “Overseas produced gas” stated herein are amounts ofJapex (U.S.) Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

13Revised Full Year Estimates

Revised estimated crude oil sales in FY2015 (vs FY2014)
Sales volume: Thousand KL
sales: Million Yen

Crude oil:Net

FY 2015
Revised Estimate Full(e)Nov.7’14

FY 2014
Full(a)Change(VS FY2014)

Sales volume

1,902

2,517+615

Net sales

119,370

152,258+32,887

Sales volume

390378▲12Net sales

27,391

25,524▲1,868

Sales volume280

1,059+779

Net sales

18,07063,496+45,426

Sales volume342

330▲13Net sales

10,962

11,471+509

Breakdown of equity oil
Domestically producedcrude oil
Overseas subsidiary
produced crude oil
BitumenOil price and Exchange rate assumptions
JCC price

US$/bbl110.51101.27▲9.24

Exchange rate

JP¥/US$

99.31

103.43+4.12

Bitumen

CA$/bb51.67

58.16+6.49

Exchange rate

JP¥/CA$

98.42

95.00

▲3.42

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

14

Revised Full Year Estimates

Revised Estimates for FY2015 (vs FY2014)
Million ￥FY 2014Full(a)FY 2015
RevisedEstimate Full(e)Nov.7’14

Causes of increase(+) or decrease(▲)

changeNet sales

276,588324,378+47,789

Gross profit

66,127

72,981+6,853

Exploration expenses

9,800

4,712

▲5,088

SG&A expenses

31,69233,588+1,895

Operating income

24,63434,681+10,047

Non-operating income

19,255

14,138▲5,117

Ordinary incomeExtraordinary income

43,88948,819+4,930▲8,305▲10+8,296

Income taxes

5,566

11,000+5,433

Minority interests inincome1,002

2,436+1,433

Net income

29,01535,374+6,359

15Gross profit
Domestic crude oiland natural gas
Overseas consolidated
subsidiaries

Exploration expenses
Domestic exploration
Overseas exploration+¥1.6billion+¥5.4billion+5.4billion▲0.3billion

Non-operating income (losses)
Share of profit of entities accounted
for using equity method ▲¥2.6 billion
Provision for loss inoverseas investment▲¥0.7 billion

other▲ ¥1.3 billion

Extraordinary income
Impairment loss for the businessassets for production operationof Yufutsu oil & gas field +¥7.9billion

Crude oil Price and Exchange Rate Assumptions and Impact on Profits [3Q-4Q]
FY2014JCC price
Exchangerate
Bitumen priceExchange
rate

FY2015

1H (a)

2H (a)

1Q-4Q(a)1stQ(a)2ndQ(a)3rdQ(e)4thQ(e)1Q-4Q(e)US$/bbl108.53112.33110.51109.51110.70100.0085.00

101.27

JP¥/US$

97.58

100.8499.31

102.27101.96105.00105.00103.43

CA$/bbl

52.22

51.16

51.67

56.57

61.84

55.83

59.27

58.16

JP¥/CA$

94.01

98.42

98.42

93.17

95.04

98.04

95.00

95.00

Assumption[3Q-4Q]

Impact onProfits[3Q-4Q]
Operatingincome
Net income

JCC price

Exchange rate

Bitumen (4thQ)

US$ 92.43/bbl

105.00JP¥/US$

CA$ 59.27/bbl（ 95.00 JP¥/CA$ ）US$ 1 /bbl increase in

A weakening in

CAD 1/bbl increase in

crude oil prices would
push profits up by...

Yen 1/US$ would pushprofits up by…

bitumen prices would
push profits up by…

190 Million Yen

300 Million Yen

140 Million Yen

140 Million Yen( 1.11 Million CA$ )110 Million Yen( 0.71 Million CA$ )70 Million Yen

Note: In addition to the impact of exchange rate fluctuations shown on the above, translation adjustments of foreign-currency-denominatedreceivables and payables also occur. Actual profits are influenced by a variety of other factors besides crude oil
prices and exchange rates.

16