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

Presentation Meetingof Consolidated Financial Results
for the Six Months Ended September 30, 2015
November 9 , 2015

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) = Estimates
FY = Fiscal Year (FY3/16, for instance, means 12 months ending March 31, 2016)
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．Consolidated Financial Results
for the Six Months Ended September 30, 2015
Executive Officer

Michiro Yamashita

３．Revised Full Year Estimates
for the Fiscal Year Ending March 31, 2016
Executive Officer

Michiro Yamashita3

1. Business Overview
President Osamu Watanabe

4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
2014-10
2014-11
2014-12
2015-01
2015-022015-032015-04
2015-05
2015-06
2015-072015-08
2015-09［Crede Oil Price US$/bbl]
$130

$120

$80
¥130

Crude Oil price US$/bbl (Left axis)

Exchange Rate JP¥/US$(Right axis)

5

¥120

$110
¥110

$100
¥100

$90
¥90

¥80

$70
¥70

$60
¥60

$50
¥50

$40
¥40

Japan Crude Cocktail (JCC) Price in the first 10 days of October 2015
on a prompt report basis : US$ 47.81/bbl JP¥ 120.31/US$［Foreign Excahnge Rate JP¥/ＵＳ＄］

Trends in Crude Oil Prices and Foreign Exchange Rate

Revised Estimates for FY3/16 (Highlight)
FY3/15

FY3/16

Change1H (a)②

Initialestimate
Full (e)May12,’15③

Revisedestimate
Full (e)Nov.6,’15④

1H
（②-①）

Full
（④-③）

144.0

124.1

271.1

257.7

▲19.8

▲13.4

32.1

3.9

5.4

9.1

8.7

+1.5

▲0.4

Ordinary income

54.8

6.5

8.8

14.0

5.9

+2.3

▲8.1

Net income（loss)

29.5

5.8

7.9

11.7

7.0

+2.1

▲4.7

US$/bbl

96.48

57.50

59.21

60.00

54.81

+1.71

▲5.19

Exchange rate JP¥/bbl

106.23115.00121.44115.00120.82

+6.44

+5.82

Bitumen price CA$/bbl

55.74

29.80

32.93

32.52

27.45

+3.13

▲5.07

Exchange rate JP¥/CA$

103.63

95.00

98.61

95.00

90.00

+3.61

▲5.00

Initialestimate
1H(e)

304.9

Operating income

Billion ￥Net sales

JCC price

Revised estimates
Full (e) Nov.6,’15

Full
(a)

May12,’15①

1Q (a)

2Q (a)

3Q (e)

4Q (e)

US$/bbl

56.49

62.50

50.00

50.00

Exchange rate JP¥/US$

119.74123.31120.00120.00JCC price6

Long-term business vision
and Medium-term business plan
Transformation to an Integrated Energy Company around Oil and Gas E&P Business
Growth investing
Stable dividend

Improve revenue
and profit
Shareholder return

Substantial
Shareholder return

FY 3/15

By the end of FY3/20

By the end of FY3/26

Production

E&P
business

7,4000boe/dProved reserve

313million boe

The steady
execution oflarge-scale
projects

Business volume of natural gas

Production

100,000boe/d Establishment
Proved reserve

550 million boe
Business volume of natural gas(LNG equivalent)both 1.5million tons
1.2million tons Diversifying“supply” andEnvironment
and innovativetechnology

Promotion of
Geothermal, CCS, MH

CSR

The ratio of female
managers

management

3.4%“procurement”

Completion of Soma
LNG terminal / FID of
power generation
business

Establishment oftechnology
Promotion
agenda ”SHINE”

The ratio of female
managers

3 times

RRR＞1
Maintaining a longterm RRR of 1>1

Business volume of natural gas(LNG equivalent)Domesticgas
business

Study of power
generation businessof a cycle ofreinvestment(LNG equivalent)

Expansionof diversity

2.5million tons
Soma power generation
business

1.2millionkW+αBusiness Prospect

Develop the diverse humanresources

E&P Business ①

Domestic exploration: Result for 1H & Plan for 2H● Drilling schedule for FY3/16
Total
Depth

1Q
4

5

2Q
6

7

8

3Q
9

10

11

4Q
12

1

2

3

Minami-Kashiwazaki
SK-1D
2,900m(Exploratory Well)■ Geophysical prospecting survey work FY3/16
Nagaoka and Ojiya-city, Niigata pref. (82 point)
Uonuma MT 3D

Work planned from Sep. to Nov.
(Electromagnetic survey: Investigate the electricalresistivity of the underground rock)

Uonuma MT 3D (82 point)
Minami-Kashiwazaki SK-1D(2,900m)

Drilling sitein Minami- Kashiwazaki SK-1D

8

E&P Business ②

Current status of global business
Oil Sands project

U.K./Norway

U.K. North Sea Block

Sakhalin(Production & Development)

Sakhalin 1 project(Production of natural gas /planning of LNG plant)

Shale Gas/LNG project(Production & Development)

Canada(Exploration)

Iraq Garraf oil field

Japex (U.S.) Corp. (Production)(Production & Development)

Middle East
Southeast Asia
Indonesia Kangean Block(Production & Development)

focus areas
Blocks owned by our consolidated
subsidiaries or equity-method affiliates
9E&P Business ③

Indonesia: Kangean BlockWest Kangean gas field(Exploration)

Pagerungan Utara oil field（Production suspended）

Jakarta
Pagerungan gas field (Production)
West Java Pipeline

Java Island
Bali Island
to Surabaya

Kangean Energy

ProjectIndonesia Ltd. (KEI)
Company

Sepanｊang Island oil field(Production suspended)

TSB gas field（Production-partly）
Sirasun gas field

Terang gas field

Batur gas field+ 2 other, Equity-method affiliate

Interest

25％ (Operator : KEI)

■ production volume : approximately 50,000boe/d□ the TSB gas field(Phase1: Terang ) : Production started in end-May 2012.
Maximum production 0.3billion cf/d
(Approximately 50,000boe/d)(Phase2: Sirasun, Batur ) : Preparing for development□South Saubi Structure : Preparing for prospecting in 201610

FPU (floating Production Unit) in the Terang gas fieldE&P Business ④

Iraq : Garraf oil field
Project
company
Interest

Japex Garraf Ltd.

30％ (cost share 40%)
Operator ： PETRONAS

Field

GarrafBaghdadGarraf oil field

In Production

Samawah2013

Expected cumulative production :2030

Nasiriyah
BasrahAround 1.3 billion bbl■ Time Schedule
2013

First oil production on August 31
Average daily production : Approximately 64,000 bbl/d

2014- 2016

Average daily production
Dec.31, 2014 : Approximately 84,000 bbl/d
Oct. 31, 2015 : Approximately 100,000 bbl/d2017 -

Targeting Production of 230,000 bbl/d* Gradual increase of production volume

Garraf crude
oil hasoil
beensmoothly fromshippedfrom oil
BasrahSteadyproduction
Garraffield

11

E&P Business ⑤

Sakhalin 1 project
Project
Company

OdoptuSakhalin Oil and
Gas Development Co., Ltd.
(SODECO)Equity-method affiliate

Interest

SODECO

Sakhalin 1 Consortium
Exxon Neftegas Ltd.
30%
Others40%

SODECO
30%

Minister of
Economy, JAPEX
Trade and 15.29%
Industry
50.00%
Others
34.71%

Arkutun-Dagi

In Production at each fields

Block

Chayvo,* The Arkutun-Dagi field commenced oil
production in January 2015.

Odoptu,* The Chayvo field achieved a new world-record ofextended reach drilling.

ArkutunDagi

ChayvoTotal production volume of Crude Oil：Approximately 180,000 bbl/d** Average production volume per day on 2015,
based on JAPEX’s estimates.

12

The Arkutun-Dagi offshore field
Started commercial production of crude oil.

E&P Business ⑥

Canada Oil Sands project
Project

Canada Oil Sands Co., Ltd. (CANOS)

Company

Operator : Japan Canada Oil Sands Ltd. (JACOS)

Hangingstone 3.75 section

100％ Interests

Approximately 5,000 - 6,000 bbl/d

In production(Cumulative production：34.13M
bbl as of end of Sep. 2015)

Expansion project of undeveloped
part of Hangingstone area
Block

75％ Interests

In development

Additional production of 20,000 bbl/dat the maximum
Corner JV lease

12％ Interests

In appraisal

Other bitumen leases(include Corner, Chard & Thornbury)

Considering future
activities

Calgary
FORT McMURRAY Area
Hangingstone
3.75 Section(In production)
Hangingstone
expansiondeveloping area

Corner JV lease■Schedule of Hangingstone Expansion
2013

Feb. ： Started early civil work for construction facilities

2014

Aug. ： Completed early civil work and started
construction of facilities

2015

Feb. ： Completed exploration of horizontal wells

End of 2016
– first half of 2017

Commencement of production (Planned)

13

Construction site of central facility for
Hangingstone Expansion

E&P Business ⑦

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

LNG project(Middle-stream)

Block /
Proposed site

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

Interest

10% Interest

10% Equity

PETRONASPETRONAS(Including subsidiaries)(Including subsidiaries)

Production and sales
of Natural Gas

FEEDOperator
Current status

Calgary

Prince Rupert(Proposed LNG
plant site)

North Montney（Block)Pipeline

Vancouver Calgary
Export LNG to Japan■Project Schedule
2013

Conclusion of contract,
Production and sales of Natural Gas

June, 2015

Conditional Final Investment Decision

July, 2015

Approval of the Project Development Agreementby the Legislative Assembly of B.C.

2015 - 2016

FID of LNG plant after Government Approval2020 or laterFirst LNG production (12MMtonnes/y)Lelu Island, Proposed LNG plant site

14

Domestic supply business ①

Construction of Soma LNG terminal■Soma LNG terminal Facilities
Site

Shinchi-Town, Fukushima Pref. (No.4 wharf area ofSoma Port)

Capacity

One LNG Tank of Aboveground Style/PC typecontaining 230,000kl

Receiving
capacity

LNG ocean-going vessel ：Full set (maximum
210,000m3 class)
LPG domestic vessel ：Full set (maximum 2,500m3
class)

Vaporizers

Sending power ： 7.0MPa 150t/h

Shipping
facilities

LNG domestic vessel ：maximum 4,800 m3 class
Tanker truck ：5 lanes, 30t/h

Commencementof operation

Mar. 2018 (Planned)■Connecting pipeline facilities
Starting point /End point

Starting point ：Soma LNG terminal
End point ：Iwanuma brunch Valve station (Iwanuma
city, Miyagi Pref.)Caliber

20B

Pressure

7Mpa

LengthAround 39km

Commencementof operation

Mar. 2018 (Planned)

15

Concrete placement construction
work on the Soma LNG tankfoundation (June 28-29）-The amount of concrete：9,778㎥,-Mixer truck：Total 2,317 cars

Construction of
the connecting
pipeline (Oct. 7)

Domestic supply business ②

Soma power generation■Outline of the plan of Soma natural gas
power plant (provisional name)

Driving force

Gas turbine and steam power(combined cycle system)

Output power

Approximately 1.2 million kW(approximately 600 thousand kW×2)

Current status

Establishment of Fukushima Gas Power Co., Ltd. /Proceeding environmental assessment■Schedule (Planned)
Nov. 4, 2014

Submission of “the Document on Primary Environmental Impact Consideration”
to the METI

Jan. 5, 2015

Written opinion issued by the METI on “the Document on Primary Environmental
Impact Consideration”

Apr. 23, 2015

Establishment of Fukushima Gas Power Co., Ltd.

May. 7, 2015

Submission of “the Draft of the Assessment method” to the METI

Oct.6, 2015

Receipt of the recommendation of “the Draft of the Assessment method” from
the METIMid 2016

Submission of “the Draft Environmental Impact Statement” to the METIMid 2017

Completion of procedures of the Environmental Impact Assessment /Commencement of construction

Jan. 2020

Commencement of commercial operation of No.1 plant

Apr. 2020

Commencement of commercial operation of No.2 plant

Rendering of the Soma LNG Terminal
and Natural Gas Power Plants

Targeting commercial operations toTokyo metropolitan area in 2020.
Revitalization of local area
(Job creation, Enterpriseattractions, etc.)

16

Environment and innovative technology

Geothermal, MH, CCS, Solar power
CCS

Geothermal power
Mt. Musa area
（Shibetsu Town）●●

Tomakomai City●●

Mt. Furebetsu
south area
（Kushiro City)

Photo provided by JapanCCS Co., Ltd* Ongoing local negotiation.

Facilities of CCS demonstration
project in Tomakomai city
Provisional jet testin Mt. Musa area

Solar power

Methane Hydrate● Mt. Bandai area

Mega-solar power station at JAPEX
Hokkaido district office●Offshore Atsumi and
Shima peninsulas

17

Photo provided by JOGMEC

The world’s first offshore methane hydrate
gas production tests

Timeline of major projects
FY3/16

FY3/17

FY3/18Canada Oil Sands
HE Exploration(Under construction)

Iraq Garraf Pending approval
Operational expansion(Production and sale,
Preparing expanding development)Indonesia Kangean
TSB Phase 2(Development)

Canada LNG
Upstream Gas Development

Canada LNG Conditional FID
LNG projectSoma
LNG terminal/ the connecting pipeline
Pre-FID
Soma
Power generation◆

FY3/19FY3/20FY3/21◆

Commencement of production◆Achieve the target production volume◆Commencement of production◆◆(Production and sale) Gradual increase of production volume◆ ◆◆FID after government approval

Commencement of
LNG production◆◆Completion of the LNG terminal◆Commencement of receiving LNG(Under construction)◆FID (targeting 2016)(Proceeding the Environmental Impact Assessment)◆Commencement of
No.1 plant operation◆ Commencement of
No.2 plant operation

JAPEX adopt the optimal financing mix for capital investment funds, through the use of own
fund, operating cash flow, public investment / debt guarantee scheme and project finance.
18

CSR - Promotion priority agenda “SHINE”


Pursue efforts to priority agendas “SHINE” in order to respondexpectations and requests from all stakeholders and grow as a trusted
global company

S ：Stable & Sustainable Energy Supply ⇒Development of New Technologies
H ：HSE as Our Culture⇒HSE activities, Global Warming Countermeasures, etc.

I ：Integrity & Governance⇒Corporate Governance, Regulatory compliance

N ：Being a Good Neighbor⇒ Coexistence and development with local communities

E ：The Employer of Choice⇒ Diversity, Human resource development

Develop thediverse humanresources

The ratio of female managers
 2014 :3.4%→ by 2020 :3 times

19

Improve HR development
 Bring out the full potential or
specialty of each individual
employee.

1H Result

2. Consolidated Financial Results
for the Six Months Ended September 30, 2015
Executive Officer Michiro Yamashita

20

1H Result

Actual Financial Results for 1H FY3/16 (Summary)Billion ￥Net Sales

FY3/15

1H (a)

146.8

FY3/161H (e)(May12 ,’15)

FY3/161
H (a)

144.0

124.1

changevs Initial
Billion ￥estimates
%
175.0
▲13%

Operating income

15.1

3.9

5.4

+38%

Ordinary income

24.7

6.5

8.8

+35%
+36%

Net income

18.8

5.8

7.9

JCC price
US$/bbl110.06

57.50

59.21

Exchange rate
JP¥/US$102.13115.00121.44

Bitumen price
CA$/bbl

58.93

29.80

32.93

Exchange rate
JP¥/CA$

95.04

95.00

98.61

150.0
125.0

Billion ￥Net Sales (left axis)

35.0

146.8

144.0

30.0

124.1
24.7

25.0
20.0

100.0

18.8
75.0

15.0

15.1

10.0

50.0

8.8
25.0

3.9

6.55.8 5.4

7.9

0.0

0.0
FY3/15 1H(a)Main points of difference with initial estimate and FY2016▲ ¥19.8billion Re-schedule of crude oil sales of Garraf Oil□ Net Sales
Field, Iraq, into third quarter of fiscal year
ending March 31, 2016.
□ Operating income +¥ 1.5billion□ Ordinary income+¥ 2.3billion Equity in losses of affiliates +¥ 1.0 billion□ Net income+¥ 2.1 billion

21

5.0

FY3/16 1H(e)right axis
Operating income
Ordinary income
Net income

FY3/16 1H(a)1H Result

Actual Sales of Natural Gas in 1H FY3/16 (vs 1H FY3/15)
FY20151H(a)Sales volume : Million M3
Net sales : Million ￥Natural gas

FY2016
1H (a)

ChangeSales volume

775

820

+45

Net sales

37,45833,031▲4,427

Breakdown of equity natural gas
Domestic gas

Sales volume

578

579

+0

(Domestically produced gas)

Sales volume

（382）

（361）

（▲21）

Overseas gas

Sales volume

196

241

+45

Million M3

900
800
700
600

196

241

Sales volume of overseas gas

Increase of sales volume by
Shale Gas project in Canada

Sales volume of domestic gas

500
400
300
200

578

579
Sales volume of “Overseas gas” stated herein are amount of Japex (U.S.)
Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

100-

FY3/15 1H

FY3/16 1H

22

1H Result

Actual Sales of Crude Oil in 1H FY3/16 ( vs 1H FY3/15 )Sales volume : Thousand KL
Net sales : Million ￥FY3/15

FY3/16

1H(a)

1H(a)

ChangeSales volume

1,107

1,480

+372

Net sales

73,50057,148▲16,352

Sales volume

190

180

▲10

Net sales

13,768

8,427▲5,341

Sales volume

273

669

+396

Net sales

18,56824,416+5,847

Sales volume

152

143

▲9

Net sales

5,382

2,927

▲2,454

US$/bbl110.0659.21▲50.85

Exchange rateJP¥ / US$102.13121.44+19.31

Bitumen price

CA$/bbl

58.93

32.93

▲26.00Exchange rateJP¥ / CA$

95.04

98.61

+3.57

Crude oil

Breakdown of equity oil sales
Domestic crude oil:Overseas crude oil:

Bitumen:Decline in sales prices
Increase of sales ofcrude oil from Garraf oil field

Decline in sales prices

Oil price and Exchange rate assumptions
JCC price

Sales volume and net sales of “Domestic 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 crude oil” stated herein are amounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd. and Japex Garraf Ltd.).

23

1H Result

Actual Financial Results for 1H FY3/16 (vs 1H FY3/15)
FY3/15

FY3/16

1H(a)

1H(a)

Net sales

146,850

124,157

Gross profit

34,515

Exploration expenses

3,260[ Million ￥]Change▲22,692

Gross profit
Domestic crude oiland natural gas▲¥3.7billion

26,408▲8,106

Overseas consolidated
subsidiaries▲¥4.4billion

4,769+1,509

SG&A expenses

16,143

16,231+87

Operating income

15,1105,407▲9,703Non-operating income(expenses)

9,625

3,434

▲6,190Ordinary income

24,736

8,842▲15,894

13

▲72

▲85

Income taxes

4,781

3,660

▲1,121

Minority interests inincome1,095▲2,853▲3,948Net income

18,873

7,963▲10,910Extraordinary income(losses)Causes of increase(+) or decrease(▲)

24

Exploration expenses
Domestic exploration+0.8billion
Overseas exploration▲2.3billion

Non-operating income (expenses)
Share of profit of entities accounted
for using equity method ▲ ¥4.8 billion
Foreign currencytranslation differences▲ ¥1.2 billion

3. Revised Full Year Estimates
for the Fiscal Year Ending March 31, 2016
Executive Officer Michiro Yamashita

25

Revised Full Year Estimates for FY3/16

Full Year Estimates[Assumption for Crude Oil Prices and Exchange Rate]
2015
2016
Full year
Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
WTI

US$/bbl

JCC price

US$/bblExchange rate JP\/US$

JACOS
Bitumen
JML
Gas
1.
2.

CA$/bbl
CA$/mcf

Initial estimates
Revised estimates

50.00
48.70

55.00
60.00
60.00
56.25
57.75 46.50 40.00
48.24
55.00
60.00
60.00
65.00
60.00
56.49 62.50 50.00 50.00 54.81
115.00 115.00 115.00 115.00 115.00
119.74 123.31 120.00 120.00 120.82

27.72
28.15
3.54
2.37

32.45
38.57
3.53
2.35

Initial estimates
Revised estimates
Initial estimates
Revised estimates

Initial estimates
Revised estimates
Initial estimates
Revised estimates

35.16
24.32
3.57
2.23

35.18
20.07
3.62
1.82

32.52
27.45
3.57
2.17

“JACOS Bitumen” stated herein Bitumen selling price of Japan Canada Oil Sands Ltd. (Deduction of Royalty)“JML Gas” stated herein Gas sales price of JAPEX Montney Ltd. (Deduction of Royalty)

26

Revised Full Year Estimates

Revised Estimates in FY3/16 (Summary)
Initialestimates
Full(e)May12,’15[Billion ￥]Net Sales
Operating income

Revisedestimates
Full(e)Nov.6,’15

271.1

257.7

9.1

8.7

ChangeVS Initial
Estimates(%) Billion￥

Change

▲4%

▲0.4

▲4%

255.0
240.0

Ordinary income

14.0

5.9

▲8.1

▲58%

Net income

11.7

7.0

▲4.7

▲40%

60.00

54.81

JCC price

US$/bblExchange rate JP¥/US$

115.00120.82

285.0

▲13.4

32.52

27.45

▲5.07

Exchange rate

JP¥/CA$

95.00

90.00

▲5.00

270.0

210.0

+5.82

CA$/bbl

271.1

16.0

257.7
14.0
11.7
9.1

10.0

8.7

8.0

7.0

195.0

5.9

180.0

2Q (a)

3Q (e)

4Q (e)

150.0

4.0

0.0

JCC price US$/bbl(Initial estimates)

55.00

60.00

60.00

65.00

Initial estimates Revised estimates(e)Mar.12,’15(e)Nov.6,’15(Revised estimates)

56.49

62.50

50.00

50.00

Bitumen price CA$/bbl(Initial estimates)right axis
Operating income

27.72

32.45

35.16

35.18

Ordinary income(Revised estimates)

28.15

38.57

24.32

20.07

27

6.0

2.0

165.0

1Q (a)

14.0
12.0

225.0

▲5.19

Bitumen priceBillion￥
18.0

Net Sales (left axis)

Net income

Revised Full Year Estimates

Revised Estimated Natural Gas Sales in FY3/16 (vs Initial Estimates)
Sales volume : Million M3
Net sales : Million ￥Natural gas

Initial estimates
Full(e)May12,’15

Revised estimates
Full(e)Nov.6,’15

ChangeSales volume

1,773

1,797

+23

Net sales

67,85670,094+2,239

Breakdown of natural gas sales
Domestic gas

Sales volume

1,265

1,288

+23

(Domestically produced gas)

Sales volume

（757）

（765）

（+8）

Overseas gas

Sales volume

509

509

+0

Million M3

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
-

Sales volume of overseas gas

509

509

1,265

1,288

Sales volume of domestic gas

Sales volume of “Overseas gas” stated herein are amount of Japex (U.S.)
Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.
Initial estimates

Revised estimates

28

Revised Estimated Crude Oil Sales in FY3/16(vs Initial Estimates)
Sales volume : Thousand KL
Net sales : Million ￥Crude Oil

Initialestimates
Full(e)May12,’15

Revisedestimates
Full(e)Nov.6,’15

Revised Full Year Estimates

ChangeSales volume

3,423

3,397

▲25

Net sales

135,841

119,837▲16,004

Breakdown of equity oil sales
Domestic
crude oil

Sales volume

335

341

+7

Net sales

14,964

15,181+218

Overseas
crude oil

Sales volume

1,827

1,796

▲31

Net sales

72,10359,893▲12,209

Sales volume

294

296

+2

Net sales

5,710

4,599

▲1,111

BitumenOil price and Exchange rate assumptions
JCC price

USD/bbl

60.00

54.81

▲5.19

Exchange rate

JP¥/US$

115.00120.82+5.82

Bitumen price

CAD/bbl

32.52

27.45

▲5.07

Exchange rate

JP¥/CA$

95.00

90.00

▲5.00

29

Decline in sales prices
Decline in sales prices
Sales volume and net sales of“Domestic 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 crude oil”
stated herein are amounts of 3
overseas subsidiaries (Japex (U.S.)
Corp., JAPEX Montney Ltd. andJapex Garraf Ltd.).

Revised Full Year Estimates

Revised Estimates for FY3/16 (vs Initial Estimates)
Initial estimates
Full(e)May12,’15

Revised estimates
Full(e)Nov.6,’15

Net sales

271,118

257,724▲13,394

Gross profit

49,47549,055▲421

Exploration expenses

7,243

7,338

+95

SG&A expenses

33,11233,038▲74

Operating income

9,120

8,679

▲441

Non-operating
income4,891▲2,802▲7,694

Ordinary income

14,012

5,877▲8,135Extraordinary income

▲20

52

+73

Income taxes

5,205

5,466

+261

Minority interests inincome▲2,919▲6,506▲3,587

Net income

11,705

6,970▲4,735

Million ￥30

Causes of increase(+) or decrease(▲)

ChangeGross profit
Domestic crude oil and natural gas+¥2.7billion
Overseas consolidated subsidiaries▲¥2.6billion

Non-operating income (losses)
Foreign currency translation
adjustments on debt ▲¥6.9billion
Equity in earnings▲¥0.3billion

Revised Full Year Estimates

Revised Estimated Natural Gas Sales in FY3/16 (vs FY3/15)
Sales volume : Million M3
Net sales : Million ￥Natural gas

FY3/15

FY3/16

Full (a)Revised estimates
Full(e) Nov.6,’15

ChangeSales volume

1,710

1,797

+86

Net sales

83,97470,094▲13,880

Breakdown of equity natural gas
Domestic gas

Sales volume

1,276

1,288

+11

(Domestically produced gas)

Sales volume

（813）

（765）

（▲49）

Overseas gas

Sales volume

434

509

+74

Million M3

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
-

434

509

Sales volume of overseas gas

Increase of sales volume by
Shale Gas project in Canada

Sales volume of domestic gas

1,276

1,288

Sales volume of “Overseas gas” stated herein are amount of Japex (U.S.)
Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

FY3/15 Full(a) FY3/16 Full(e)31Revised Full Year Estimates

Revised estimated crude oil sales in FY3/16 (vs FY3/15)
Sales volume : Thousand KL
Net sales : Million ￥Crude oil

FY3/15

FY3/16

Full (a)Revisedestimates
Full(e)Nov.6,’15

ChangeSales volume

2,396

3,397

+1,001

Net sales

133,346

119,837▲13,510

Breakdown of equity oil sales

Domestic
crude oil:

Sales volume

367

341

▲26

Net sales

23,857

15,181▲8,676

Overseas
crude oil:

Sales volume

830

1,796

+966

Net sales

43,46659,893+16,427

Sales volume

332

296

▲36

Net sales

12,105

4,599▲7,507

BitumenOil price and Exchange rate assumptions
JCC price

US$/bbl

96.48

54.81

▲41.67

Exchange rate

JP¥/USD

106.23120.82+14.59Bitumen

CA$/bbl

55.74

27.45

▲28.29Exchange rate

JP¥/CA$

103.6390.00▲13.6332

Decline in sales prices
Increase of sales ofcrude oil from Garraf oil field

Decline in sales priceSales volume and net sales of “Domestic
crude oil” stated herein do not include
purchased crude oil. Royalty is excludedin the net sales and price of Bitumen.
Sales volume and net sales of “Overseas
crude oil” stated herein are amounts of 3
overseas subsidiaries (Japex (U.S.)
Corp., JAPEX Montney Ltd. and Japex
Garraf Ltd.).

Revised Full Year Estimates

Revised Estimates for FY3/16 (vs FY3/15)
Million ￥FY3/15Full(a)FY3/16
Revisedestimates
Full(e)Nov.6,’15

Causes of increase(+) or decrease(▲)

ChangeNet sales

304,911257,724▲47,188

Gross profit

70,262

49,055▲21,207

Exploration expenses

4,489

7,338

+2,848

SG&A expenses

33,62533,038▲588

Operating income

32,146

8,679▲23,468

Non-operating income

22,692▲2,802▲25,495

Ordinary income

54,8395,877▲48,962

Extraordinary income▲4,46552+4,518

Income taxes

17,644

5,466▲12,178

Minority interests inincome3,161▲6,506▲9,668Net income

29,567

6,970▲22,598

33

Gross profit
Domestic crude oiland natural gas▲¥7.6billion
Overseas consolidated
subsidiaries▲¥12.5billion

Exploration expenses
Increase of Overseas exploration▲2.7billion

Non-operating income (losses)
Share of profit of entities accounted
for using equity method▲¥10.1 billion
Foreign currency translation
adjustments on debt ▲¥6.9 billion
Other▲ ¥6.4 billion

Crude Oil Prices and Exchange Rate Assumptions
and Impact on Profits [3Q-4Q]
FY3/15

FY3/16

1Q-4Q(a)1stQ(a)2ndQ(a)3rdQ(e)4thQ(e)1Q-4Q(e)JCC price

US$/bbl

96.48

56.49

62.50

50.00

50.00

54.81

Exchange rate

JP¥/USD

106.23119.74123.31120.00120.00120.82

Bitumen

CA$/bbl

55.74

28.15

38.57

24.32

20.07

27.45

Exchange rate

JP¥/CA$

103.63

94.78

98.61

89.34

90.00

90.00

Canadian gas

CA$/mcf

4.20

2.37

2.35

2.23

1.82

2.17

Assumption

JCC price(3rdQ-4thQ)

Exchange rate
(3rdQ-4thQ)

Bitumen (4thQ)

Canadian gas(4thQ)USD 50.00/bbl

120.00 JP¥/US$

CA$ 20.07/bbl(90.00 JP¥/CA$)

CA$ 1.82/mcf

A weakening in

Impact on
Profits

US$ 1 /bbl increasein crude oil prices
would push profits
up by…

Operatingincome360 Million Yen

200 Million Yen

40 Million Yen

410 Million Yen

Net income

250 Million Yen

120 Million Yen

30 Million Yen

170 Million Yen

Yen 1/US$ would
push profits up
by…

CAD 1 /mcf increase in
CAD 1 /bbl increase in
Canadian gas prices
bitumen prices would
would push profits up
push profits up by…
by…

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.

34