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

Consolidated Financial Results
for the Fiscal Year Ended
March 31, 2015
＜Supplementary material＞
May 12 , 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) = Estimate
FY = Fiscal Year (FY3/15, for instance, means 12 months ended March 31, 2015)
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

1

$120

$70

2012-032012-04
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
2014-10
2014-11
2014-12
2015-01
2015-022015-03[Crude Oil Price: US$/bbl]$130

Crude Oil Price US$/bbl (Left Axis)

Exchange Rate ¥/$ (Right Axis)

2

¥120

$110
¥110

$100
¥100

$90
¥90

$80
¥80

¥70

$60
¥60

$50
¥50

$40
¥40[Foreign Exchange Rate: JP¥/US$]

Trends in Crude Oil Price and Foreign Exchange Rate
¥130

Actual Results for FY3/15 and Estimate for FY3/16 (Highlight)
Billion ￥■ Actual Results for FY3/15 （vs FY3/14）

3,500
350.0

FY3/14(a)FY3/15(a)Net Sales

276.5

304.9+28.3+10%

OperatingIncome

24.6

32.1+7.5+31%

Ordinary Income

43.8

54.8+10.9+25%

Net Income

29.0

29.5+0.5+2%

110.5196.48（14.03）

（13%）

99.31

106.23+6.92+7%[Billion ￥]JCC Price（US$/bbl)
Exchange Rate（JP￥/US$）

Difference300.0
3,000

276.5

250.0
2,500

2,000

Net Sales

304.9

271.1（33.7）（11%）

OperatingIncome

32.1

9.1（23.0）（72%）

Ordinary Income

54.8

14.0（40.8）（74%）

Net Income

29.5

11.7

（17.8）（60%）

JCC Price（US$/bbl)

96.48

60.00

（36.48）（37%）

Difference

400
40.0

32.1

30.0
300

29.5

24.6

20.0
200

14.0
10.0
100
11.7
9.1

5000

FY3/14 (a)FY3/15 (a)Operating Income (Right Axis)
Ordinary Income (Right Axis)

106.23115.00

+8.77

+8%

360.0
600
50.0
500

43.8

1,500

1,000

FY3/16(e)271.154.8

29.0

FY3/15(a)Exchange Rate（JP￥/US$）

700
70.0304.9■ Estimate for FY 3/16 （vs FY3/15）[Billion ￥]Billion ￥Net Sales (Left Axis)

Net Income (Right Axis)

FY3/16 (e)00Actual Result

Actual Results for FY3/15 (Highlight)[Million ￥]FY3/14
Actual (a)FY3/15Initial Estimate (e)(May 2014)

RevisedEstimate (e)(Nov. 2014)

Actual (a)Net Sales

276,588323,633

324,378

304,911

Operating Income

24,63433,077

34,68132,146

Ordinary Income

43,88941,46948,81954,839Net Income

29,01527,37935,37429,567

Oil price and Exchange rate assumptions
JCC Price（US$/bbl）

110.51100.00101.27

96.48

Exchange Rate

（JP￥/US$）

99.31

100.00103.43106.23

Bitumen Price（CA$/bbl）

51.67

54.15

58.16

55.74

Exchange Rate（JP￥/CA$）

98.42

95.00

95.00

103.63

 Initial Estimate (May 2014)

Revised Estimate (Nov. 2014)【＋】 Increase of Natural Gas Sales, Increase of Equity Method Income, etc.
【－】 Decrease of Oil Sales, etc.

 Revised Estimate (Nov. 2014)

Actual Result【＋】 Increase of Exchange Profit, Increase of Equity Method Income, etc.
【－】 Decrease of Oil Sales, Decrease of Sales Price, Impairment Loss, etc.

4Actual Result

Actual Results for FY3/15 (vs Revised Estimate for FY3/15)
FY3/15(e)FY3/15(a)Net sales

324,378

Gross profit

Change≪Causes of increase(+) or decrease(-) ≫304,911（19,467）

Gross profit

72,981

70,262（2,719）Domestic crude oil and natural gas

Exploration
expenses

4,712

4,489

（223）

SG&A expenses

33,58833,625+37

Operating income

34,68132,146（2,535）Non-operatingincome(expenses)

14,13822,692+8,554

Ordinary income

48,81954,839+6,020

Extraordinary
income(losses)（10）（4,465）（4,455）

Income taxes

11,00017,644+6,644

Minority interests
in income

2,436

3,161+725

Net income

35,37429,567（5,807）[ Million ￥]- ¥2.0 billion

Non-operating income (expenses)

Share of profit of entities accounted for using+ ¥2.5 billion
Equity method
Exchange Profit+ ¥6.0 billion

Extraordinary income (losses)

Impairment loss on overseas development assets- ¥3.9 billion

CIF price

Conventional

US$/bbl

ActualExchange rate

Conventional

JP¥/US$

Actual

1Q

2Q

109.51110.70102.27101.963Q

Income Taxes

Tax effect not applicable to extraordinary loss

- ¥1.6 billion

Deferred tax liabilities associated with the tax reform
Other deferred tax assets review

4Q

1Q-4Q

100.00(e)85.00(e)101.27(e)99.69 (a)64.58(a)96.48(a)105.00(e)105.00(e)103.43(e)107.77(a)118.69(a)106.23(a)5- ¥1.8 billion- ¥3.2 billion

Actual Result

Actual sales of Natural gas for FY3/15 (vs FY3/14)
FY3/14

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

1H (a)

FY3/15Full (a)1H (a)

changeFull (a)1H

FullSales volume

614

1,418

775

1,710+160+291

Net sales

31,883

71,58437,45883,974+5,575+12,390

Breakdown of equity natural gas
Domestic gas sales

Sales volume577

1,251578

1,276+1+25(Domesticallyproduced gas)

Sales volume

408

853

382813（26）（39）

Overseas subsidiarygas sales

Sales volume

37167

196

434+158+266(Million M3)

1,800
Sales volume of overseas subsidiary gas

1,600
1,400
1,200

167

434

Sales volume of domestic gas

1,000

1,019
800
600
400

1,251

1,276

FY3/14 (a)FY3/15 (a)Sales volume of “Overseas subsidiary gas” stated herein are amounts ofJapex (U.S.) Corp. and JAPEX Montney Ltd..

200-6

Actual Result

Actual Sales of Crude Oil for FY3/15 (vs FY3/14)
FY3/14

Sales volume : Thousand KL
Net sales : Million ￥FY3/15change1H (a)

Full (a)1H (a)

Full (a)1H

FullSales volume877

1,902

1,107

2,396

+229+494

Net sales

53,919119,370

73,500133,346+19,581+13,975

Domestically produced
crude oil:

Sales volume188390190

367+1（22）Net sales

12,82827,391

13,76823,857+940（3,534）

Overseas subsidiary
crude oil:

Sales volume

8

280

273

830

+264+549

Net sales

478

18,07018,56843,466+18,089+25,395

Sales volume

165

342

152

332

（12）

（10）

Net sales

5,110

10,962

5,382

12,105+271+1,143

US$/bbl108.53110.51110.06

96.48

+1.53

（14.03）

Exchange rateJP¥ / US$

97.58

99.31

102.13106.23

+4.55

+6.92

Bitumen price

CA$/bbl

52.22

51.67

58.93

55.74

+6.71

+4.07

Exchange rateJP¥ /CA$

94.01

98.42

95.04

103.63

+1.03

+5.21

Crude oil:
Breakdown of equity oil

Bitumen:Oil price and Exchange rate
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

Actual Result

Actual Results for FY3/15 (vs FY3/14)≪Causes of increase(+) or decrease(-) ≫FY3/14

FY3/15(a)(a)

Net sales

276,588

304,911+28,322

Gross profit

66,12770,262+4,134

Exploration expenses

9,800

4,489

（5,310）

SG&A expenses

31,692

33,625+1,932

Operating income

24,63432,146+7,512

Non-operating income(expenses)

19,255

22,692+3,437

Ordinary income

43,88954,839+10,949

Extraordinary income(losses)（8,305）（4,465）+3,839[ Million ￥]Change

Income taxes

5,566

17,644+12,077

Minority interests inincome

1,002

3,161

+2,159Net income

29,01529,567+552

8Gross profit
Domestic crude oil and natural gas
Overseas consolidated subsidiaries- ¥0.3 billion+ ¥5.3 billion

Exploration expenses
Domestic exploration+ ¥5.7 billion

Overseas exploration- ¥0.3 billion

Non-operating income (expenses)
Exchange Profit+ ¥5.5 billion
Extraordinary income (losses)

Decreased of an impairment loss on domestic business+ ¥4.0 billion
assets(FY3/14 Yufutsu: + ¥ 7.9 billion → FY3/15 Overseas Business: + ¥ 3.9 billion

Income Taxes

Corporate tax increase associated with the increase in- ¥4.6 billion
profitTax effect not applicable to extraordinary loss

- ¥1.6 billion

Deferred tax liabilities associated with the tax reform
Other deferred tax assets review- ¥1.8 billion- ¥3.2 billion

Estimates for FY3/16

Estimates for FY3/16 【Assumptions】[Assumptions of oil/gas price and foreign exchange rate]
FY3/161Q

FY3/162Q

FY3/163Q

FY3/164Q

FY3/16
Estimate(e)FY3/15
Actual(a)

55.00

60.00

60.00

65.00

60.00

96.48

115.00115.00115.00115.00115.00106.23

27.72

32.45

35.16

35.18

32.52

55.74

3.50

3.50

3.50

3.50

3.50

4.15

95.00

95.00

95.00

95.00

95.00

103.63

FY3/15
4Q
CIF price(US$/bbl)

Exchange rate(JP¥/US$)

Bitumen(CA$/bbl)

AECO price(CA$/MMBtu)

Exchange rate
(JP¥/CA$)
1.
2.
3.

Bitumen price is after royalty deduction.
“Actual of FY3/15” of Bitumen price and AECO gas price are shown during Jan-Dec 2014.
“Actual of FY3/15” of CA$ exchange price is shown TTM rate on Dec 30, 2014.

9

Estimates for FY3/16

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

FY3/16
Full (a)1H (e)

changeFull (e)1H

FullSales volume775

1,710

817

1,773+42+63

Net sales

37,45883,97431,96567,856（5,494）（16,119）

Breakdown of equity natural gas
Domestic gas sales

Sales volume

578

1,276

573

1,265

（6）

（11）

(Domesticallyproduced gas)

Sales volume

382

813

357757（26）（57）

Overseas subsidiarygas sales

Sales volume

196

434

245

509

+49+74(Million M3) 2,000

Sales volume of overseas subsidiary gas

1,800
1,600
1,400

434509

Sales volume of domestic gas

1,200
1,000800600

1,276

1,265

FY3/15 (a)FY3/16 (e)400Sales volume of “Overseas subsidiary gas” stated herein are amounts of 2
overseas subsidiaries (Japex (U.S.) Corp. and JAPEX Montney Ltd.).

200-10Estimates for FY3/16

Estimated Sales of Crude Oil for FY3/16 (vs FY3/15)
FY3/15

Sales volume : Thousand KL
Net sales : Million ￥FY3/16change1H (a)

Full (a)1H (e)

Full (e)1H

FullSales volume

1,107

2,396

2,069

3,423+962+1,026

Net sales

73,500133,346

79,233

135,841+5,733+2,494Domestically produced
crude oil:

Sales volume

190

367

172

335

（19）

（33）

Net sales

13,76823,857

7,388

14,964（6,381）（8,894）

Overseas subsidiary
crude oil:

Sales volume

273

830

1,154

1,827+881+997

Net sales

18,56843,466

43,63072,103

Sales volume

152

332

145

294

（8）

（39）

Net sales

5,382

12,1052,579

5,710（2,803）（6,396）

US$/bbl110.06

96.48

57.50

60.00

（52.56）（36.48）Exchange rateJP¥ / US$102.13106.23115.00115.00+12.87+8.77

Bitumen price

CA$/bbl

58.93

55.74

29.80

32.52

（29.13）（23.22）

Exchange rateJP¥ /CA$

95.04

103.63

95.00

95.00

（0.04）（8.63）

Crude oil:
Breakdown of equity oil

Bitumen:+25,062 +28,637

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.).

11

Estimates for FY3/16

Estimates for FY3/16 (vs FY3/15)≪Causes of increase(+) or decrease(-) ≫FY3/15

FY3/16(a)(e)

Net sales

304,911271,118（33,794）

Gross profit

70,26249,475（20,787）

Exploration expenses

4,489

7,243+2,753[ Million ￥]Change
Gross profit
Domestic crude oil and natural gas
Overseas consolidated subsidiaries- ¥11.8billion- ¥ 9.8 billion

Exploration expenses

SG&A expenses

33,625

33,112（513）

Operating income

32,146

9,120（23,027）

Non-operating income(expenses)

22,692

4,891（17,801）

Ordinary income

54,83914,012（40,828）

Extraordinary income(losses)（4,465）（20）+4,445

Income taxes

17,644

5,205（12,439）

Minority interests in income

3,161（2,919）（6,081）

Net income

29,567

11,705（17,863）

Domestic exploration
Overseas exploration- ¥0.3 billion- ¥2.3 billion

Non-operating income (expenses)

Share of profit of entities accounted for using- ¥9.7 billion
equity method
Exchange profit- ¥6.8 billion

Extraordinary income (losses)

12

Decreased of an impairment loss on overseas business+¥3.9 billion
assetsEstimates for FY3/16

Oil Price and Exchange Rate Assumptions and Impact on Profits
Assumption

FY3/16
Impact on Profits

JCC price

Exchange rate

Bitumen price

60 US$/bbl

115.00 JP¥ / US$

32.52CA$/bbl（95.00 JP¥ /CA$ ）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¥ 490 millionJP¥ 450 million( 1.83 million CA$ )JP¥ 170 million

Net incomeJP¥ 340 millionJP¥ 240 million(1.29 million CA$ )JP¥ 120 million

FY3/15

FY3/16

1H (a)

2H (a)

Full (a)1H (e)

2H (e)

Full (e)changeJCC price

US$/bbl110.06

82.03

96.48

57.50

62.50

60.00

（36.48）Exchange rate

JP¥/US$102.13112.10106.23115.00115.00115.00+8.77

Bitumen price

CA$/bbl

58.93

53.04

55.74

29.80

35.17

32.52

（23.22）

Exchange rate

JP¥/CA$

95.04

103.63103.63

95.00

95.00

95.00

（8.63）

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.

13