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

Consolidated Financial Results
for the Fiscal Year Ended
March 31, 2014
＜Supplementary material＞
May 12 , 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

¥130

$125

¥125

$120

¥120

$115

¥115

$110

¥110

$105

¥105

$100

¥100

crude oil price US$/bbl（left axis）

$95

¥95

$90

¥90

$85

¥85

$80

exchange rate ¥/$（right axis）

$75

¥80
¥75

$70

¥70

Japan Crude Cocktail (JCC) Price in the first 10 days of April 2014
on a prompt report basis : US$ 109.77/bbl JP¥ 101.97/US$
3[foreign exchange rate: JP¥/US$]$130

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
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
2014-022014-03crude oil price: US$/bbl

Trends in Crude Oil Price and Foreign Exchange Rate

Actual Results for FY2014 and Estimate for FY2015 (Highlight)
Billion ￥■ Actual results for FY2014 ( vs FY2013)

330.0

FY2013(a)

FY2014(a)changeNet Sales

231.0

276.5

+45.5

+20%

Operating income

13.9

24.6

+10.7+77%[ Billion ￥]300.0

Ordinary income

28.0

43.8

+15.8+56%

Net income(0.8)

29.0+29.8-%

210.0

114.67110.51(4.16)

(3%)

180.0

81.71

99.31

+17.60

+22%

150.0

JCC price
US$/bblExchange rate
JP¥/US$

FY2014(a)

FY2015(e)changeNet Sales

276.5

323.6

+47.1

+17%

60.0

Operating income

24.6

33.0

+8.4

+34%

30.0

Ordinary income

43.8

41.4

(2.4)

(5%)

Net income

29.0

27.3

(1.7)

(5%)

110.51100.00(10.51)(9%)

JCC price
US$/bblExchange rate
JP¥/US$

45.0

276.5
43.8

231.0

100.00

35.0

33.0
29.0

28.0

30.0

27.3

24.6

90.0

+0.69

20.0

13.9

10.0
5.0-0.80.0

0.0

-5.0

FY2013

FY2014

Operating income (right axis)
Net income (right axis)

+1%4

25.0

15.0

Ordinary income (right axis)

99.31

40.0

41.4

120.0

■ Estimate for FY2015 ( vs FY2014)[ Billion ￥]50.0

Net Sales (left axis)

270.0
240.0

Billion ￥323.6

FY2015(e)Actual Result

Actual Results for FY2014 ( Highlight )FY2013
Actual[ Million ￥]FY2014
Initialestimate(May 2013)

Revisedestimate(Feb. 2014)

ActualNet Sales

231,086

232,692

272,802276,588

Operating income

13,906

20,722

21,54024,634

Ordinary income

28,08228,783

38,08343,889(865)

21,511

24,08929,015

Net income

Oil price and Exchange rate assumptions
JCC price

US$/bbl114.67100.00109.93110.51

Exchange rate

JP¥/US$

81.71

90.00

98.43

99.31

Bitumen price

CA$/bbl

50.71

45.87

51.58

51.67

Exchange rate

JP¥/CA$

87.05

90.00

98.42

98.42

Initial estimate (May 2013)

Revised estimate (Feb. 2014)

Revised estimate (Feb. 2014)

Rev. estimate (Feb. 2014)& Actual results (May 2014)【＋】 Rise in crude oil and natural gas sales prices 【＋】change of exchange rate 【＋】 Equity in earnings in affiliates【－】 Impairment loss for the business assets for production operation of Yufutsu oil & gas field【＋】Rise in crude oil sales prices 【＋】 Equity in earnings in affiliates
Operating income ¥24.6 billion (+¥3.0 billion )Ordinary income ¥43.8 billion (+¥5.8 billion )Net income loss ¥29.0 billion (+¥4.9 billion )5

Actual Result

Actual sales of Natural gas for FY2014 (vs FY2013)
Sales volume : Million M3
Net sales : Million ￥Natural gas ：FY 2013
1H (a)FY 2014Full (a)1H (a)

changeFull (a)1H

FullSales volume685

1,455614

1,418(70)(36)

Net sales

30,054

69,79531,883

71,584+1,828+1,789

Breakdown of equity natural gas
Domesticallyproduced gas:

Sales volume498

1,019408853

(89)

(166)

Overseassubsidiary gas:

Sales volume

01

37167

+36+166

Million M3

Sales volume of overseas subsidiary gas

1,200
1,000

1

Sales volume of domestically produced gas

167

800
600

-Decrease in demand for utility gas customers and industrial users

1,019

400853

Net sales increased by ¥1.7 billion (+2%) vs FY2013-Increase in sales price of natural gas-Increase in sales volume of overseas subsidiary gas
Sales volume of “Domestically produced gas” stated herein does not include purchased gas.

200
-Sales volume decreased by 36 million M3 (-2%) vs FY2013

Sales volume of “Overseas subsidiary gas” stated herein are amounts of Japex (U.S.) Corp. and JAPEXMontney Ltd..

FY2013

FY2014

6

Actual Result

Actual Sales of Crude Oil for FY2014 (vs FY2013)
FY 2013

Sales volume : Thousand KL
Net sales : Million ￥1H (a)FY 2014Full (a)1H (a)

changeFull (a)1H

FullSales volume920

1,6848771,902

(42)

+217

Net sales

46,46388,52953,919119,370+7,456+30,841

Domestically produced
crude oil:

Sales volume

240

468

188

390(51)(78)

Net sales

14,291

28,167

12,82827,391(1,462)(775)

Overseas subsidiary
crude oil:

Sales volume158280+7+274

Net sales

61

290

478

18,080+417+17,780

Sales volume

187

349

165

342

(21)

(6)

Net sales

4,708

9,694

5,110

10,962+401+1,267

US$/bbl116.16114.67108.53110.51(7.63)(4.16)

Exchange rateJP¥ / US$

80.35

81.71

97.58

99.31+17.23+17.60

Bitumen price

CA$/bbl

52.02

50.71

52.22

51.67

+0.20

+0.96

Exchange rateJP¥ /CA$

76.77

87.05

94.01

98.42

+17.24+11.37

Crude oil:
Breakdown of equity oil

Bitumen:Oil price and Exchange rate
JCC price

Domestically produced crude oil : 【－】 Decrease in sales volume
Overseas subsidiary crude oil : 【＋】 Commencement of sales of crude oil from Garraf oil field
Bitumen : 【＋】 Rise in sales priceSales 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.).

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Actual Result

Actual Results for FY2014 (vs FY2013)≪Causes of increase(+) or decrease(-) ≫FY2013

FY2014(a)(a)

Net sales

231,086

276,588+45,502

Gross profit

59,01066,127+7,117

Exploration expenses

13,0869,800(3,285)

SG&A expenses

32,017

31,692(324)

Operating income

13,906

24,634+10,728

Non-operating income(expenses)

14,176

19,255+5,078

Ordinary income

28,082

43,889+15,806

Extraordinary income(losses)(34,522)(8,305)+26,217

Income taxes(6,927)

5,566+12,494

Minority interests in income

1,352

1,002

(350)

Net income(865)

29,015+29,880[ Million ￥]Change

8

Gross profit
Domestic crude oil and natural gas +¥4.3 billion+¥2.0 billion
Asset retirement obligations- ¥2.4 billion
Overseas consolidated subsidiaries +¥ 2.9 billion
LNG substitution expense

Exploration expenses
Overseas exploration
Domestic exploration+¥3.6 billion- ¥0.3 billion

Non-operating income (expenses)

Share of profit of entities accounted for using+¥11.3 billion
equity method
Dividends income- ¥7.2 billion

Extraordinary income (losses)
Gain on transfer of mining rights - ¥2.8 billion
Decreased of an impairment loss on business assets
for production operation of Yufutsu oil & gas field+¥29.0 billion

Estimate for FY2015

Estimates for FY2015 (Point)
FY2014[ Million ￥]FY2015change1H (a)

Full (a)1H (e)

Full (e)1H

FullNet Sales

120,281276,588

157,514323,633+37,232+47,044

Operating income

11,543

24,634

14,33933,077+2,796+8,442

Ordinary income

19,902

43,88920,15941,469+257(2,420)

Net income

15,88329,015

13,597

27,379(2,286)(1,636)

US$/bbl108.53110.51100.00100.00(8.53)(10.51)JP¥/US$

97.58

99.31

100.00100.00

+2.42

+0.69

Bitumen price

CA$/bbl

52.22

51.67

54.42

54.15

+2.20

+2.48

Exchange rate

JP¥/CA$

94.01

98.42

95.00

95.00

+0.99

(3.42)

JCC price
Exchange rate

Point

FY2015 vs FY2014≪Causes of increase(+) or decrease(-) ≫Operating income

Exploration expenses+¥ 5.9 billion

Ordinary income

Non-operating income(expenses)-¥ 10.8 billion

Net income

Extraordinary income(losses)+¥ 8.3 billion

Income taxes-¥ 6.6 billion+¥ 8.4 billion-¥ 2.4 billion-¥ 1.6 billion

9Estimate for FY2015

Estimated Sales of Natural Gas for FY2015 (vs FY2014)
FY 2014

Sales volume : Million M3
Net sales : Million ￥Natural gas ：1H (a)FY 2015

Full (a)1H (e)

changeFull (e)1H

FullSales volume614

1,418

770

1,684+155+265

Net sales

31,883

71,58436,29380,169+4,409+8,585

Breakdown of equity natural gas
Domestically
produced gas:

Sales volume408

853

381

801(28)(53)

Overseassubsidiary gas:

Sales volume37

167200417+163+249

Million M3

Sales volume of overseas subsidiary gas

1,400

Sales volume of domestically produced gas

1,200
1,000
800600

167

417

1,019

-

-Increase in production volume of overseas subsidiary gas

Net sales increased by ¥8.5 billion (+2%) vs FY2014-Increase in profit from a rise in sales volume of overseas subsidiary gas

400200

Sales volume increased by 265 million M3 (+18%) vs FY2014

853801

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Sales volume of “Overseas subsidiary gas” stated herein are amounts of 2 overseas subsidiaries(Japex (U.S.) Corp. and JAPEX Montney Ltd.).

FY2014FY2015(e)

10

Estimate for FY2015

Estimated Sales of Crude Oil for FY2015 (vs FY2014)
FY 2014

Sales volume : Thousand KL
Net sales : Million ￥1H (a)FY 2015

Full (a)1H (e)

changeFull (e)1H

FullSales volume877

1,902

1,443

2,695+565+793

Net sales

53,919119,37085,582

158,248+31,662+38,878

Domestically produced
crude oil:

Sales volume

188

390

207

391+18+1

Net sales

12,82827,391

13,221

25,176+493(2,216)

Overseas subsidiary
crude oil:

Sales volume

8

280

585

1,223+576+943

Net sales

478

18,07035,38873,948+34,909+55,878

Sales volume

165

342

161

330

(4)

(12)

Net sales

5,110

10,962

5,245

10,666+135(295)

US$/bbl108.53110.51100.00100.00(8.53)(10.51)

Exchange rateJP¥ / US$

97.58

99.31

100.00100.00+2.42+0.69

Bitumen price

CA$/bbl

52.22

51.67

54.42

54.15

+2.20

+2.48

Exchange rateJP¥ /CA$

94.01

98.42

95.00

95.00

+0.99

(3.42)

Crude oil:
Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

Domestically produced crude oil : 【－】 Fall in sales prices
Overseas subsidiary crude oil 【＋】 Increase in sales volume
Bitumen : 【－】 Decline in sales volume
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.).

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Estimate for FY2015

Estimates for FY2015[ Million ￥]Net sales

FY2014FY2015(a)(e)

276,588323,633≪Causes of increase(+) or decrease(-) ≫Change+47,044

Gross profit
Domestic crude oil and natural gas - ¥2.7 billion+ ¥2.4 billion
Overseas consolidated subsidiaries +¥ 4.6 billion
Asset retirement obligations

Gross profit

66,12770,611+4,483

Exploration expenses

9,800

3,892

(5,908)

SG&A expenses

31,692

33,642+1,949Operating income

24,63433,077+8,442

Non-operating income(expenses)

19,255

8,393(10,862)

Ordinary income

43,88941,469(2,420)Extraordinary income(losses)(8,305)(1)+8,304

Income taxes

5,566

12,195+6,628

Minority interests in income

1,002

1,895+892

Net income

29,01527,379(1,636)

12Exploration expenses
Domestic exploration+ ¥5.9 billion

Non-operating income (expenses)

Share of profit of entities accounted for using
equity method- ¥8.8 billion
Foreign exchange profit or loss
- ¥1.1 billion

Extraordinary income (losses)
Impairment loss for the business assets for
production operation of Yufutsu oil & gas field+¥7.9 billion

Estimate for FY2015

Oil Price and Exchange Rate Assumptions and Impact on Profits
Assumption

FY2015
Impact on Profits

JCC price

Exchange rate

Bitumen price

US$/bblJP¥ / US$

CA$/bbl（ JP¥ /CA$ ）US$ 1/bbl increase inJP¥ 1/US$ weakening in

CA$ 1/bbl increase in

JCC prices would pushprofits up by...

exchange rates would pushprofits up by…

bitumen prices would pushprofits up by…

Operating incomeJP¥ 510 millionJP¥ 680 million( 2.07 million CA$ )JP¥ 200 million

Net incomeJP¥ 350 millionJP¥ 370 million(1.46 million CA$ )JP¥ 140 million

FY2014FY2015

1H (a)

2H (a)

Full (a)1H (e)

2H (e)

Full (e)changeJCC price

US$/bbl108.53112.33110.51100.00100.00100.00(10.51)

Exchange rate

JP¥/US$

97.58

100.8499.31

100.00100.00100.00+0.69

Bitumen price

CA$/bbl

52.22

51.16

51.67

54.42

53.89

54.15

+2.48

Exchange rate

JP¥/CA$

94.0198.42

98.42

95.00

95.00

95.00

(3.42)

Note1: 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.

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