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

Consolidated Financial Results
for the Nine Months Ended December 31, 2016
＜Supplementary Material＞
February 8, 2017

Japan Petroleum Exploration Co., Ltd.

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

Note: abbreviations used herein are as follows:(a) = actual result(f) = forecasts
FY = fiscal year (FY3/17, for instance, means 12 months ending March 31, 2017)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:Investor Relations Group, Media & Investor Relations Dept.
Japan Petroleum Exploration Co., Ltd.
Tokyo, JAPANTEL: +81-3-6268-7111

2

2013-12
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
2015-10
2015-11
2015-12
2016-01
2016-02
2016-03
2016-04
2016-05
2016-06
2016-072016-08
2016-09
2016-10
2016-11
2016-12[Crude Oil Prices US$/bbl]
$120

$110

$90
¥160

Crude Oil Prices US$/bbl (Left axis)$100

Exchange Rate JP¥/US$ (Right axis)

Japan Crude Cocktail (JCC) price in the first 10 days of January 2017
on a prompt report basis : US$ 50.97/bbl

3

¥150

¥140

¥130$80¥120$70¥110$60¥100$50¥90$40¥80$30¥70

JP¥ 117.39/US$[Foreign Exchange Rate: JP¥/US$]

Trends in Crude Oil Prices and Foreign Exchange Rate

Consolidated Financial Forecasts for FY3/17 (Highlight)
FY3/16
Billion JP¥

FY3/17

ChangePrevious
forecasts
Full (f)Nov.8, 2016④

Revisedforecasts
Full (f)Feb.8, 2017
⑤

1Q-3Q
(a) ①

Full(a) ②

187.4

240.3

144.6

189.5

210.3

-42.7

-29.9

Operating income(loss)

6.9

8.3

-1.6

-1.2

-0.8

-8.5

-9.2

Ordinary income(loss)

6.6

4.6

0.2-3.7

3.5-6.4-1.0

Profit (loss)
attributable toowners of parent

6.3

2.0

1.8-0.3

4.9-4.5+2.8

Net sales

1Q-3Q(a) ③

1Q-3Q
③-①

Full
⑤-②

Assumptions
JCC price

US$/bbl

56.00

51.48

43.35

43.34

45.09

-12.65-6.39

Bitumenprice

US$/bbl

23.85

21.05

9.94

9.94

9.94

-13.91-11.11

Exchangerate

JP¥/US$121.26121.06106.06103.63107.20-15.20-13.864

1Q-3Q Result

Actual Financial Results for 1Q-3Q FY3/17 (Summary)Billion JP¥

FY3/17
1Q-3Q(a)ChangeNet sales

187.4

144.6

-42.7

Operating income(loss)

6.9-1.6-8.5-%

Ordinary income(loss)

6.6

0.2-6.4-95%

Profit (loss)
attributable toowners of parent

6.3

1.8

Billion ¥Billion ¥FY3/16
1Q-3Q(a)-4.5

Change VS 200
Previous
Forecasts%

-22%

175

150-71%13187.4
Net Sales (left axis)

144.6

6.9 6.6
6.3

5

1.8

Assumptions
US$/bbl

56.00

43.35

-12.65

Bitumenprice

US$/bbl

23.85

9.94

-13.91

Exchangerate

JP¥/US$121.26106.06-15.208125100JCC price1030.2-75-1.650
FY3/16 1Q-3Q (a)FY3/17 1Q-3Q (a)right axis
Operating income
Ordinary income
Profit attributable to owners of parent

5-3

1Q-3Q Result

Actual Sales of Natural Gas in 1Q-3Q FY3/17( year-on-year )Sales volume : Million M3
Net sales : Million JP¥

FY3/16

FY3/17

1Q-3Q (a)1Q-3Q (a)ChangeSales volume

1,253

1,321

+68

Net sales

49,17037,170-11,999

Domestic gas

Sales volume895

867-28(Domestically produced gas)

Sales volume(552)

(521)

(-30)

Overseas gasSales volume357453+96

Natural gas

Decline in sales price

Breakdown

Million M3

Sales volume of overseas gas

1,600
1,200357453895867

Increase in shale gas sales volumein Canada

Sales volume of domestic gas

800400-

Sales volume of “Overseas gas” stated herein are amounts of Japex (U.S.)
Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.
3Q FY3/16(a)3Q FY3/17(a)6Actual Sales of Crude Oil in 1Q-3Q FY3/17( year-on-year )FY3/16

FY3/17

1Q-3Q(a)1Q-3Q(a)Sales volume

2,506

2,320-185Net sales

87,46063,720-23,740

Sales volume260

224-36

Net sales

11,478

7,166-4,311

Sales volume

1,294

1,167-126

Net sales

42,63627,555-15,080

Sales volume

223

91-131

Net sales

4,018594-3,423

JCC price

US$/bbl

56.00

43.35

-12.65

Bitumen price

US$/bbl

23.85

9.94

-13.91

Exchange rate

JP¥/US$121.26106.06-15.20

Sales volume : Thousand KL
Net sales : Million JP¥

Crude Oil

1Q-3Q Result

ChangeBreakdown
Domestic crude oil *1

Overseas crude oil *2

Bitumen *3

Decrease in crude oil sales volumefrom Garraf Oil Field, Iraq
Decrease in sales volume becauseof a temporarily suspend aproduction operation

Assumptions

*1*2
*3

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

71Q-3Q Result

Actual Results for 1Q-3Q FY3/17 ( year-on-year )FY3/16
Million JP¥

Main factors for change

FY3/17
Change1Q-3Q (a)1Q-3Q (a)Net sales

187,402

144,678-42,724

Gross profit

37,465

20,668-16,796

6,335

1,104

-5,23024,221

21,240-2,981

Operating income (loss)

6,907-1,676-8,584

Other income (expenses)

-221

1,951

+2,172

Ordinary income (loss)

6,686

274

-6,412Extraordinary income(loss)-27-288-260

Income taxes

5,566

620

-4,945

Profit (loss) attributable
to non-controllinginterests-5,275-2,483+2,792

Profit (loss) attributableto owners of parent

6,368Exploration expenses
SG&A expenses

1,848-4,5198

Increase factor (+) / Decreasing factor (-)
Gross profit
Domestic crude oil and natural gas
Overseas consolidated subsidiaries
Reduction of consignment revenue
Other- ¥8.1 billion- ¥6.8 billion- ¥2.2 billion+ ¥0.6 billion

Exploration expenses
Reduction of domestic exploration
Reduction of overseas exploration+ ¥1.5 billion+ ¥3.6 billion

SG&A expenses
Decrease in selling expenses of JAPEX (Nonconsolidated), Cost reduction+ ¥2.2 billion
Decrease in transportation cost and G&A expensesof JACOS+ ¥0.5 billion
Other income (expenses)
Foreign currency translation adjustments on debt,
foreign exchange gains and losses(Previous) Losses ¥5.6 billion→(Current) Gains ¥0.6 billion+ ¥6.2 billion
Share of profit (loss) of entities accounted forusing equity method- ¥3.6 billion

Revised full year forecasts

Assumptions of Revised Forecasts for FY3/17[Assumptions for Crude Oil Prices and Exchange Rate]

2016
2017
Full year
Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
JCC price
Exchangerate
JACOS
Bitumen
JMLGas1.
2.

US$/bbl
JP\/US$

US$/bbl
CA$/mcf

Previous forecasts

45.00
43.34
37.17
45.92
45.00
37.17 45.92 46.72 50.00 45.09
110.71 105.32 100.00 100.00 103.63
110.71 105.32 103.24 110.00 107.20

Revised forecasts
Previous forecasts
Revised forecasts

Previous forecasts
Revised forecasts
Previous forecasts
Revised forecasts

7.12
7.12
1.58
1.58

16.95
16.95
1.36
1.36

2.14
2.20

1.94
2.62

9.94
9.94
1.74
1.93

“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)

9Revised full year forecasts

Revised Forecasts in FY3/17 (Summary)Previous
forecasts
Full (f)Nov.8,2016

Revisedforecasts
Full (f)Feb.8,2017

Change

189.5

210.3

+20.8+11%

Operating income (loss)-1.2-0.8+0.3-%

Ordinary income (loss)-3.7

3.5+7.2-%

Profit (loss) attributable toowners of parent-0.3

4.9+5.3-%

Billion JP¥
Net Sales

Change VS
Previous
Forecasts%

US$/bbl43.34

45.09+1.75

Bitumen price

US$/bbl

9.94

9.94

-

Exchange rateJP¥/US$

103.63107.20+3.57

Net Sales (left axis)
200

5--0.3-1.2-0.8503Q(a)4Q (f)

37.17

45.92

46.72

50.00

Bitumen price US$/bbl

7.12

16.95

--Exchange rate JP¥/US$

110.71105.32103.24110.00

10

4.9

100

US$/bbl

JCC price

189.5

3-2Q (a)

210.3

150

Quarterly assumptions

1Q (a)

Billion ¥8

3.5

Assumptions
JCC price

Billion ¥250-3-3.7
Previous forecasts(f) Nov. 8, 2016

Revised forecasts(f) Feb. 8, 2017

right axis
Operating income
Ordinary income
Profit attributable to owners of parent-5

Revised Forecasts Natural Gas Sales in FY3/17(vs Previous Forecasts)

Revised full year forecasts

Previous forecasts Revised forecasts
Full (f)Full (f)Nov.8, 2016
Feb.8, 2017

Sales volume : Million M3
Net sales : Million JP¥

ChangeSales volume

1,828

1,854+26

Net sales

53,84754,698+851

Domestic gas

Sales volume

1,245

1,254+9(Domestically produced gas)

Sales volume

(733)

(739)

(+6)

Overseas gas

Sales volume583

600+17Natural gas
Breakdown

Million M3

2,000
1,600

Sales volume of overseas gas

583

600

1,245

1,254Sales volume of domestic gas

1,200800400-

Previous forecasts(f)Sales volume of “Overseas gas” stated herein are amounts of Japex (U.S.)
Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.
Revised forecasts(f)11Revised Forecasts Crude Oil Sales in FY3/17(vs Previous Forecasts)
Sales volume : Thousand KL
Net sales : Million JP¥

Revisedforecasts
Full (f)Feb.8,2017

Previousforecasts
Full (f)Nov.8,2016

Revised full year forecasts

ChangeSales volume2,852

3,087+234

Net sales

75,00089,824+14,823

Domestic crude
oil *1

Sales volume302

303+1Net sales

9,309

10,077+768

Overseas crudeoil *2

Sales volume

1,496

1,500+3

Net sales

35,54337,770+2,227

Sales volume

92

92-Net sales

592683+91

JCC price

US$/bbl

43.34

45.09

+1.75

Bitumen price

US$/bbl

9.94

9.94

-

Exchange rate

JP¥/US$103.63107.20+3.57

Crude OilBreakdown

Bitumen *3
Assumptions

*1*2
*3

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

12Revised full year forecasts

Revised Forecasts for FY3/17 (vs Previous Forecasts)
Main factors for change

Previous forecasts
Full (f)Nov.8, 2016

Revised forecasts
Full (f)Feb.8, 2017

Net sales

189,528

210,349+20,821

Gross profit

29,15430,820+1,666

Exploration expenses

1,845

1,714-131

SG&A expenses

28,59429,992+1,398

Operating income (loss)-1,285-887+399

Other income (expenses)-2,4394,457+6,897

Ordinary income (loss)-3,725

3,571+7,295

Extraordinary income(loss)

97

1,004+908

Income taxes

584

1,560+976

Profit (loss) attributable
to non-controllinginterests-3,871-1,943+1,928

Profit (loss) attributableto owners of parent

-341

4,959

+5,300Million JP¥

13Change

Increase factor (+) / Decreasing factor (-)
Gross profit
Domestic crude oil and natural gas+ ¥0.7billion
Overseas consolidated subsidiaries+ ¥0.1billion
Other+ ¥0.5billion
Other income (expenses)
Foreign currency translation
adjustments on debt, foreign exchange
gains and losses(Previous) Losses ¥1.9 billion→(Current) Gains ¥3.6 billion+ ¥5.6 billion

Extraordinary income (loss)
Sale of real estate+ ¥0.9 billion

Revised Forecasts Natural Gas Sales in FY3/17(year-on-year)

FY3/17 Revised forecasts(f) Feb.8, 2017

FY3/16

Sales volume : Million M3
Net sales : Million JP¥

Full (a)Revised full year forecasts

1Q-3Q (a)4Q (f)

ChangeFull (f)(year-on-year)

Sales volume1,780

1,321533

1,854+73

Net sales68,469

37,17017,52854,698-13,772

Sales volume

1,275

867

387

1,254-21(Domestically produced gas)
Sales volume(769)

(521)

(218)

(739)

(-30)

504

453

147600+95

Natural gas
Breakdown
Domestic gas

Overseas gas

Sales volume

Million M3

2,000
Sales volume of overseas gas

1,600

504600

1,275

1,254

Increase in shale gas sales
volume in Canada

Sales volume of domestic gas

1,200
800
400
-

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

FY3/16 Full (a) FY3/17 Full (f)14Revised full year forecasts

Revised Forecasts Crude Oil Sales in FY3/17(year-on-year)
Sales volume : Thousand KL
Net sales : Million JP¥

FY3/16

FY3/17 Revised Forecasts Full (f) Feb.8,2017

Full (a)1Q-3Q (a)4Q (f)

Change(year-on-year)

Full (f)Sales volume

3,233

2,320

767

3,087-147

Net sales

102,918

63,72026,10489,824-13,095

Sales volume

340

224

79

303

-37

Net sales

13,815

7,166

2,911

10,077-3,738

Sales volume

1,616

1,167

333

1,500-116

Net sales

48,38427,55510,215

37,770-10,615

Sales volume306

91-92-215

Net sales

4,894594-

683-4,212

JCC price

US$/bbl

51.48

43.35

50.00

45.09

-6.39

Bitumen

US$/bbl

21.05

9.94

-9.94

-11.11

Exchange rate

JP¥/US$

121.06106.06110.00107.20-13.86

Crude oil
Breakdown

Domestic crude oil*1

Overseas crude oil*2

Bitumen*3
Assumptions

*1
*2
*3

Sales volume and net sales of “Domestic crude oil” stated herein do not include purchased crude oil.
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.).
Royalty is excluded in the net sales and price of “Bitumen”.

15

Revised full year forecasts

Revised Forecasts for FY3/17 (year-on-year)
Million JP¥

FY3/16 Full (a)Main factors for change

FY3/17 Revisedforecasts Full (f)Feb.8, 2017

ChangeIncrease factor (+) / Decreasing factor (-)
Gross profit
Domestic crude oil and natural gas - ¥7.8 billion
Overseas consolidated subsidiaries - ¥7.4 billion
Reduction of consignment revenue - ¥2.7 billion
Other+ ¥0.8 billion

Net sales

240,302210,349-29,954

Gross profit

47,27930,820-16,460

Exploration expenses

6,516

1,714-4,802

SG&A expenses

32,42629,992-2,435

Operating income (loss)

8,336-887-9,224

Other income(expenses)-3,684

4,457+8,142

Ordinary income (loss)

4,652

3,571

-1,081

Extraordinary income(loss)-3,143

1,004+4,148

Income taxes

6,388

1,560

-4,829Profit (loss) attributable
to non-controllinginterests-6,970-1,943+5,027Extraordinary income (loss)

Profit (loss) attributableto owners of parent

2,090+2,868

Decrease in FY3/16 impairment loss+ ¥3.0 billion
Sale of real estate+ ¥0.9 billion

Exploration expenses
Reduction of overseas exploration + ¥3.6 billion
Reduction of domestic exploration + ¥1.1 billion

SG&A expenses
Decrease in selling expenses of JAPEX (Nonconsolidated), Cost reduction+ ¥3.0 billion

Other income (loss)

4,959

16

Foreign currency translation adjustments on
debt , foreign currency exchange gains andlosses(Previous) Losses ¥8.8 billion→(Current) Gains ¥3.6 billion+ ¥12.4 billionShare of profit (loss) of entities accounted forusing equity method- ¥3.4 billion