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

Presentation Meetingof Consolidated Financial Results
for the Fiscal Year Ended March 31, 2014 (FY2014)
May 13 , 2014
Sapia Tower, Marunouchi Tokyo, Japan

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

Contents
１．Business Overview
President

Osamu Watanabe

２．Actual Results for FY2014
Executive Officer

Michiro Yamashita

３．Estimates for FY2015
Executive Officer

Michiro Yamashita3

Business Overview
President

Osamu Watanabe

4

¥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$
5[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)

(4%)

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)(10%)

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

-0.8

0.0

0.0

-5.0

FY2013

FY2014

Operating income (right axis)+1%

Net income (right axis)

6

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)Corporate Vision and Basic Strategies for
JAPEX Expansion
While positioning E&P business at the Company’s main activities, Japex to endeavor to increasebusiness opportunities for realizing its expansion by:i) shifting E&P activities overseas,ii) strengthening investment in domestic natural gas and,iii) cultivating environment and innovative technology.

E&Pbusiness
Maximize the value ofexisting overseas& domestic assets
E&P： exploration and Production

Domestic
natural gas
business
Environment& innovativetechnology
business

Increaseproduction
volumeShift investment
to overseas

Sustain andincrease
reserves

Supply overseas equity LNG to domestic market
Engage in wide-ranging activities including
the building an integrated supply system over domestic and overseas,
the upgrade of infrastructure
and cultivating natural gas demand

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

7Steady Progress of
the Medium-Term Business Plan （FY2012-FY2016）
Domestic natural gas business

Shift investment to overseas

Securing of natural gas resources

E&P business

Decline in production volume of
Yufutsu oil and gas field
Successes of domestic exploration（Katakai, Yufutsu）
Pursuing equity LNG from overseas

Overseas investment ratio:
expanded to 70% from 30%

Increase production volume
Building domestic gas infrastructuresConstruction of Soma LNG receiving
terminal and other pipeline networks

Start production from Teran gas
field (Indonesia) and Garraf oil
field (Iraq)

Sustain and increase reserves
Expanding natural gas sales

Expanding sales by combination of pricecompetitive domestically produced gas
and equity LNG from CanadaFID made in Canada oilsands
expansion
Participation in Canada shale
gas/LNG project・Steady progress of 5-year plan has been made through projects including Canadian LNG along with Soma
receiving terminal.
・Expect to reach earlier to the medium-term target of production volume :70,000BOED and of proved
reserves：450Million BOE, respectively.

8

Production Volume and Proved Reserves(*) BOED: Barrels of Oil Equivalent per Day◆Production volume in FY2014 : 48,000 BOED (*)⇒Increased 32% YOY. Main reason was full year production of SODECO and Kangean TSB gas field.

◆Proved reserves at end of FY2014 : 305 million BOE⇒Decreased 32% YOY. Main reason was the increase by the acquisition of interest in Canadian natural gas development,
despite the decline in domestic reserves.

Anticipate to achieve the medium-term targets by ensuring progress in the Canadian natural gas
project, Canada oil sands expansion project and Garraf project of Iraq.
Production volume(BOED)

Proved reserves(Million BOE)

【Target 】
domestic

48,000257
49

70,00040,00038,00036,000FY2011 FY2012 FY2013 FY2014

Medium-term business plan
(FY2012～FY2016）

208
FY2016FY2011overseas
307

305

223
38

160

193

185

147

112

FY2012FY2013

FY2014【 Target】

450

FY2021(target)(target)Medium-term business plan (FY2012～FY2021）* The above production volume and proved reserves are equivalent to the JAPEX Group’s interest.

9

CAPEX Plan for FY2015■CAPEX and Depreciation&amortization■ Recoverable accounts (Payments and recovery)[Billion ¥]

FY12

FY13

FY14

FY15
（e)

[Billion ¥]

FY12

FY13

FY14

FY15
（e)

CAPEX

17.4

13.2

127.2

112.7

Payments

6.4

12.0

20.5

60.6

Depreciation andamortization

23.9

16.2

15.5

14.0

Recovery

-

-

13.7

64.2

[Billion ¥]150[Billion ¥]
30

127.2

23.9
100

16.2

15.5

[Billion ¥]
70
60

112.7

50

20

14.0

50

30

20.5

20

13.2

10

0

0
FY2012

60.6

40
10

17.4

64.2

FY2013

FY2014

6.4

12.0
13.7

0

FY2015FY2012(e)
CAPEX(left axis)
Depreciation & amortization (right axis)

FY2013

payments

10

FY2014

recovery

FY2015(e)Timeline of Projects & Investment Scale■Timeline

2015/3

2016/32017/3

CanadaOil sand expansion project
CanadaNatural gas（up-stream）

2018/3◆Commence
production(midst 2016)2019/32020/3

Expand production (plan)

Increase production gradually

CanadaLNG project （mid-stream）◆Commence
LNG production(end of 2018)◆FID（plan）(end of 2014)

Japan
Soma LNG receiving terminal（under construction）■Investment scale・Financing
Total investment :Estimated balance of liabilities（external funds procured,loan guarantee by Japex andits consolidated subsidiaries）◆Commence receiving LNG(March, 2018)2015/3

2016/3～2020/3

Approx.110 billion yen

Approx. 160 billion yen

2015/3
Approx.100 billion yen

11Cash required for these investment
will be covered by own fund + free
cash flows + external funds procured(including financing)Domestic Exploration Plan for FY2015● Drilling schedule for FY 2015
1Q

Total
Depth
Akebono SK-6bH

4

5

2Q
6

7

8

3Q
9

10

4Q

11 12

1

2

3

5,800 mFukumezawa SK-26DH 2,300 m(Tight oil development*)(Horizontal
Drilling)(Fracturing)

Akebono SK-6bH (5,800m)(*) CAPEX account■ Geophysical prospecting survey plan
3D seismic
survey3D (63km2) Yurihara/Ayukawa field in
Akita Prefecture

Fukumezawa SK-26DH (2,300m)● Work for FY 2013
Total
Depth

1Q
4

5

2Q
6

7

8

3Q
9

4Q

10 11 12 1

2

3

ResultKatakai SK-30D-1

5,268 mSucceeded

Iwafuneoki MS-1

3,740 mSucceeded(Extension
well)

Akebono SK-6aH

5,800 mContinued

12

Yurihara 3D (63km2)
Iwafuneoki East MS-1(3,740m)

Katakai SK-30D-1 (5,268m)

Enforcement of Domestic Profit （1） Hokkaido Vision
Continue long-term gas business in Hokkaido promoting
the following trinity:
Optimize operating costs
at Yufutsu oil & gas field⇒Reducing operating costs

Pursue exploration anddevelopment potential●Tomakomai⇒Akebono SK-6bH well is now under drilling⇒Pursue the possibility of shallow crude oilformation

Akebono SK-6bH

Increasing natural gas sales andsecuring stable supply⇒ Utilize Yufutsu LNG Receiving Terminal anddomestic LNG vessels⇒ Secure price-competitive LNG
Collaboration with the construction of Soma
LNG receiving terminal⇒ Increasing natural gas sales in southern areaof central Hokkaido

Promoting E&P in Hokkaido

Yufutsu oil & gas field○
Yufutsu plant

Port of Tomakomai

Utilization of Yufutsu plant13

Enforcement of Domestic Profit （2） Tight oil development
in Akita Prefecture

Ayukawa oil & gas field：
April 1, 2014Started commercial production
at 35kl/d (220bbl/d）

Akita⇒ striving to obtain knowledge
about the tight formation in
Ayukawa oil & gas field

●

Tokyo

Fukumezawa oil field：
Late May, 2014Plan to start horizontal well drilling as a partof Japan’s first demonstration experiment ofmultistage fracturing in tight formation.
⇒ Possibility of increase production in Fukumezawa
oil field

The results of above experiments are expected tocontribute greatly to acquisition of knowledge
about development of Onnagawa tight oil formation,
distributed widely in Akita Prefecture.
14

Onnagawa tight formation (Akita Pref.)Image of demonstration experiment in Fukumezawa oil fieldEnforcement of Domestic Profit （3） Soma LNG receiving terminal
Canadian LNG to Japan---- Building an integrated natural gas supply system
Shale Gas/LNG ProjectNorth Montney area
（Shale gas field）
Yufutsu LNG receiving terminal

Delivered to Japan in 8–9 days

Prince Rupert
LNG liquifaction & shipment terminal(Plan)※ Estimated LNG production volume:
12 million tonnes/year（JAPEX to offtake its 10% equivalent ofequity LNG ）LNG Domestic
vessels

Niigata-Sendai pipeline
connecting pipeline (40km)

Soma LNG receiving terminal■Soma LNG receiving terminal Construction Schedule
Final Investment Decision2013 Nov. 27 （FID）
2014-

Construction to be commenced

2017 Dec.

Construction to be completed

2018 Mar.

Service to be commenced

15

Blocks owned by our consolidated subsidiaries
or equity-method affiliates.

Current Status of Overseas BusinessGreenland
Kanumas Area
(Exploration)⑤ Canada③Sakhalin 1

Shale Gas/LNG(production of natural gas/planning of LNG plant)(production&development)
UK
North Sea Block④ Oil sands

development(Exploration)(production & development)②Iraq

Shale oildevelopment

Garraf oil field(production & development)(production & development)① Kangean Block (production & development)

Block A Aceh (development & exploration)
Kerapu (exploration)
Universe Gas & Oil (production)
Japan CBM (exploration)
16

Current Status of Overseas Business ①

Indonesia: Kangean BlockWest Kangean gas field(Exploration)

Jakarta

Pagerungan Utara oil field（Production suspended）

East Javagas pipeline

Bali Island

Pagerungan gas field(Production)
Sepanｊang Island oil field（Production suspended)

to Surabaya

Project
Companies

Kangean Energy
Indonesia Ltd. (KEI)

TBS gas field （Production-partly）

Sirasun gas field
Terang gas field
South Saubi
Batur gas field+ 2 other equity-method
affiliates

Interest

サウス・チュルカン
２５％ （Operator：
KEI）
South Celukan■ Current gross production : Crude oil equivalent of around 50,000 bbl/d□ TSB gas field(Phase1) Terang ： Commenced production in end-May 2012.
Maximum production 0.3billion cf/d(around 50,000boe/d in crude oil equivalent)(Phase2) Sirasun, Batur : Preparing for development
FPU of Terang Gas field

17

Current status of overseas business ②

Iraq : Garraf oil field
Project
company

Japex Garraf Ltd.

Interest

30％（ cost share 40％ ）Operator ： PETRONAS

Field

Garraf2013

BaghdadProduction

Expected cumulative production :Around 1.3 billion bbl

Garraf oil field
Samawah

2030

Nasiriyah
Basrah■ Time Schedule

2013

Commenced production
Average daily production : 64,000 bbl/d(during production commencement to end of 2013)

2014～
2016

Plan to increase production gradually

2017

Plan to achieve plateau production
target of 230,000 bbl/d

Garraf oil field has commenced oil production

18

Current status of overseas business ③

Sakhalin 1 Project
Project company

OdoptuSakhalin Oil and
Gas Development Co., Ltd. (SODECO)
Interest

Arkutun-Dagi

Sakhalin 1 Consortium

SODECO

Exxon
Neftegas Ltd.
30%

JAPEX
JAPEX
15.29%
15.29%

Minister of
Economy,Trade and
OthersIndustry
50.00% Others
34.71%
34.71%SODECO

Ohters
40%

Block

30%

Chayvo, Odoptu ： Production（Total production of Crude Oil：Around 130,000 bbl/d*）*Sakhalin 1 project total in 2014 (JAPEX estimates）

Arkutun-Dagi ：Developing toward production of
Crude Oil (Target year : 2014)19

ChayvoCurrent Status of Overseas Business ④

Canada Oil Sands
Project
company

Canada Oil Sands Co., Ltd. (CANOS)

Block

Hangingstone 3.75 section

Production

100％ interest

Cumulative
production of
31 million bbl

Operator : Japan Canada Oil Sands Ltd. (JACOS)

around 6,000 bbl/d(as of end-March,
2014)

Expansion project of undeveloped
part of Hangingstone area
Development

75％ interest

Calgary
FORT McMURRAY area
Hangingstone
commonly known as“3.75 section” area
（production）

Additional production of 20,000 bbl/d at the maximum

HangingstoneConer JV lease

expansion area
(development)

12％ interest

Appraisal

Corner JV lease
Other bitumen leases(include Corner, Chard & Thornbury)

Considering
futureactivities■Schedule
2012

Dec.：

2013

Feb.： Started construction (early civil work)
Aug.： Commenced drilling of horizontal wells
Sep.: Concluded EPC contracts for major facilities

2016

Plan to commence production

Final Investment Decision (FID)

20

Oilsands development
as a pioneer of SAGD method

Current status of Overseas Business ⑤

Canada Shale Gas/LNG Project
Shale Gas development
and Production Project（Up-stream）

LNG Project（Middle-stream）

Block/
Candidatesite of
LNG plant

North Montney,
British Columbia,
CanadaLelu Island,
the Port of Prince
Rupert, B.C.

Interest

10% Interest

10% Equity

Operator

PETRONAS（Includes subsidiaries）

PETRONAS（Includes subsidiaries）

Current
Status

Production and sales of
Natural Gas

FEED■Project Schedule
26 APR 2013

Conclusion of Contract

End of 2014

Plan to FID of LNG plant2014 ～ 2018

Construction of LNG plant

End of 2018

First LNG Production （12MMtonnes/y)21

Drilling at North Montney

Environment and Innovative Technology Business
Geothermal Energy
Business

Solar Power Business●

Musadake area
（Shibetsu
TomakomaiTown）●●

Image of solar panels to be installed at
Japex Hokkaido district office
Drilling operation ofMusadake area

CCS

Methane Hydrate● Mt. Bandai area

Photo provided by JOGMEC
Photo provided by Japan CCS Co., Ltd.

Drilling of CCS observation well

●Offshore Atsumi and
Shima peninsulas

22World’s first offshore methane hydrate
gas production tests

Result

Actual Results for FY2014
Executive Officer

Michiro Yamashita
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)23

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

28,082

28,78338,08343,889(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 )24

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 volume

685

1,455

614

1,418

(70)

(36)

Net sales

30,054

69,79531,883

71,584+1,828+1,789

Breakdown of equity natural gas
Domestically
produced gas:

Sales volume

498

1,019

408

853

(89)

(166)

Overseassubsidiary gas:

Sales volume

0

1

37

167

+36

+166

Million M3

Sales volume of overseas subsidiary gas

1,200
1,000

1

Sales volume of domestically produced gas

167

800
600

Sales volume decreased by 36 million M3 (-2%) vs FY2013-Decrease in demand for utility gas customers and industrial users

1,019

853

400

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.
Sales volume of “Overseas subsidiary gas” stated herein are amounts of 2 overseas subsidiaries(Japex (U.S.) Corp. and JAPEX Montney Ltd.).

200
FY2013

FY201425

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 volume

920

1,684

877

1,902

(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 volume

1

5

8

280

+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.).

26

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 ￥]ChangeGross profit
Domestic crude oil and natural gas +¥4.3 billion

27+¥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
equity method+¥11.3 billion
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

Full Year Estimates

Estimate for FY2015
Executive Officer

Michiro Yamashita
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)28

Estimate for FY2015

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

Full (a)1H (e)

Full (e)1H

Full

Net 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

29

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 volume

614

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 volume

408

853

381

801

(28)

(53)

Overseassubsidiary gas:

Sales volume

37

167

200

417

+163

+249

Million M3

Sales volume of overseas subsidiary gas

1,400

Sales volume of domestically produced gas

1,200
1,000

167

417

Sales volume increased by 265 million M3 (+18%) vs FY2014-Increase in production volume of overseas subsidiary gas

800
600

1,019

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

400
200

853

801

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)30

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 volume

877

1,902

1,443

2,695

+565

+793

Net sales

53,919119,370

85,582

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.).

31

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+8,442Non-operating income(expenses)

19,255

8,393(10,862)

Ordinary income

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

5,566

12,195+6,628

Income taxes
Minority interests in income

1,002

1,895

+892

Net income

29,01527,379(1,636)32

Exploration 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
JCC price
Assumption

FY2015
Impact on Profits

US$/bblExchange rate

Bitumen priceJP¥ / 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$

94.01

98.42

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.

33