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

Financial Results

for the fiscal year Ended March 31, 2020

May 14, 2020

Japan Petroleum Exploration Co .,Ltd.
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

AgendaⅠ. Financial Highlights,
Progress of Mid-term Business Plan
Masahiro Fujita
Representative Director and President, Chief Executive Officer

Ⅱ. FY3/20 Financial Results
Michiro Yamashita
Director, Managing Executive Officer

Ⅲ. FY3/21 Forecasts
Michiro Yamashita
Director, Managing Executive Officer

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

2

Ⅰ. Financial Highlights,
Progress of Mid-term Business Plan
Masahiro Fujita

Representative Director and President, Chief Executive Officer

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

3

Summary
FY20/3 Results（FY2019）



Profit increased owing to increase in sales volume of diluted bitumen, the improved WCS differential as well as theabsence of foreign exchange losses incurred in the previous period

FY3/21 Forecasts（FY2020）Promote 3 main business to achieve the ROE target of 5% or more, that is
set in Mid-term Business Plan

Follow a fund allocation policy of FY2022 targeted strategy while FY3/21 forecast worsened by decline of oil price

Return to Shareholders

Operating loss - ￥ 8.2 bn. (YoY -￥22.5 bn. )Profit attributable to owners of parent - ￥ 3.1 bn. (YoY -￥30.0 bn.)

Expecting increase in sales of electricity owing to the start of commercial operations at the Fukushima Natural Gas
Power Plant, while expecting decrease in profit due to collapse in oil price
Assuming decrease in crude oil sales volume due to suspension of operation and production in Garraf Oil Field in Iraq,
under COVID-19 pandemic situation

Progress of
Mid-term Business Plan

Operating profit ￥14.2 bn. (YoY +￥11.9 bn.)
Profit attributable to owners of parent ￥26.8 bn. (YoY +￥12.0 bn.)

FY3/20 annual dividend of ￥50.0 per share (Increased by ￥10.0)
FY3/21 dividend forecast of ￥50.0 per share (Interim and year-end
dividend of ￥25.0 respectively)

In line with its basic policy of maintaining the stable payout of dividends, increase corporate value in mid-to-longterm and further enhance of shareholder returns by improving the soundness of its financial position and facilitating
growth investment

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

4

Financial Highlights : FY3/20 and FY3/21 Forecasts
Billion Yen■ FY3/20 Results (Year-on-year)
Billion Yen

FY3/19 (a)FY3/20(a)Net sales

267.9

318.8

+50.8

+18%

Operating profit

2.3

14.2

+11.9

+517%

Ordinary profit

12.5

32.6

+20.1

+160%

Profit attributable toowners of parent
Crude oil price (CIF) (USD/bbl)
Exchange rate (JPY/USD)

Change

350.0

14.7

26.8

+12.0

+81%

71.94

68.11

-3.83

-5%

110.35109.15-1.20

Billion Yen
45.0

Net Sales (Left Axis)

318.8

300.0

267.9

32.6
26.8

250.0

25.0

200.0
12.5

-1%

35.0

14.7 14.2

223.6
15.0

150.0

■ FY3/21 Forecasts (Year-on-year)
FY3/20(a)FY3/21(f)Net sales

318.8

223.6

-95.1

-30%

Operating profit (loss)

14.2

-8.2

-22.5

-%

Ordinary profit (loss)

32.6

-2.1

-34.7

-%

Profit (loss) attributable toowners of parent

26.8

-3.1

-30.0

-%

Crude oil price (CIF) (USD/bbl)

68.11

40.00

-28.11-41%

Exchange rate (JPY/USD)

109.15108.00-1.15-1%Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Change

5

5.0

2.3

Billion Yen

100.0

-2.1
-3.1

50.0

-5.0

-8.2

-

FY3/19(a)FY3/20 (a)FY3/21 (f)-15.0

Right Axis
Operating profit (loss)
Ordinary profit (loss)
Profit (loss) attributable to owners of parent

Long-term Vision and Mid-term Business Plan
Long-term Vision 2030
“Growth to the Integrated Energy Company Utilizing Oil and Gas E&P and its Supply Basis”

TargetRealize E&P and Non-E&P profit* composition ratio to 6:4 in 2030

*Sum of Operating profit and Equity method investment income

Mid-term Business Plan 2018-2022
Improve financial position and diversify the base of business as first 5 years toward the realization ofLong-term Vision

TargetAchieve ROE of 5% or more in FY2022

Profit attributable to owners of parent (Billion Yen)

 ROE resulted in 6.5% for FY2019
 Covid-19 pandemic and the collapse inoil prices likely to interfere with theachievement of ROE target for FY2020

14.7” Promote Mid-term Business Planaiming financial structure that is notaffected by oil price volatility’’

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

under assumed JCC price of USD60/bbl

6

26.8
-3.1

FY2018FY2019FY2020

FY2022

3.5%

6.5%

-%

Target5% or more

ROE

FY2030FY2019 Progress to the Target
E&P Business

Infrastructure & Utility Business

New BusinessLong-term Targets

Long-term Targets
Promote Supply of Energy with alow environmental impact

Long-term Targets
Generate Environmentally
Friendly New Business

FY2022 Target and FY2019 Progress Transacted 1.2 million tons (LNG
equivalent) to the target of 1.6

FY2022 Target and FY2019 Progress

Maintain “RRR*1＞1”
FY2022 Target and FY2019 Progress

 Made a steady progress on
exploration and development
activities as well as the outlook study
for additional development tomaintain and increase reserves

million tons

 Committed electricity sales of
JAPEX offtake from FGP *2 toward
the target electricity sales volumeof 2.8 billion kWh

 Continued screening for working
interest acquisition in overseas

Proved reserves （MMBOE*3)
Domestic

349

Notes

中

Overseas

352

255

277

94

74

FY2015FY2016387
302

 Realizing the ideas of new businessseeds, received within and outsideof the company

Production volume (MBOED*4）
Domestic

355

323

296

73

64

58

FY2017FY2018FY2019229

 Searching potential business towhich know-how and experience of
LNG supply are applicable, todevelop new business model

73

Overseas

76

72
60

62

42

45

52

19

19

18

17

17

FY2015FY2016FY2017FY2018FY2019*1 Reserve Replacement Ratio*2 Fukushima Natural Gas Power Plant, LNG regasified gas fueled and operated by Fukushima Gas Power Co., Ltd. which JAPEX hold 33% of shares（Started commercial operation in April 2020）*3 Barrels of Oil Equivalent*4 Barrels of Oil Equivalent per Day

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

7

60

54

FY2019 Progress and FY2020 Outlook on Main Projects■Business development：□Growth investment／●Demonstration or Examination phase：○ Growth investment

E&P

FY2019 result

FY2020 outlook

Increase domestic reserves in mid-to-long term Completed exploratory drilling and survey offshore the Hidaka
Area in Hokkaido

Maintain and Increase domestic production volume
 Start production in Yufutsu shallow reservoir in Hokkaido (Planned

Promote and improve profitability of Overseas projects
 Started development work in U.K. North
Sea Seagull Project (Planned to start production in 2021 end*1)

in June 2020*2)

Develop Overseas E&P projects and improve profitability
 Achieve 230KBD in Iraq Garraf Project (Planned in Dec 2020*1)

Ongoing

I/U*3

Domestic Stable Supply of Natural Gas
 Established the LNG Marketing and Procurement Dept./ Startup Singapore Office
Renewable Energy Development
 Established the Renewable Energy Business Dept.

 Domestic – Pursue activities to maintain and increase production volume
and to increase reserves in mid-to-long term Overseas – Improve profitability of 2 projects in Canada / Examine
potential opportunities for the acquisition of additional working interest

Solid Business foundation against oil price volatility Commercial Operation Commencement of Fukushima Natural
Gas Power Plant*4 (April 2020)

Ongoing Increase new customer or sale of natural gas / Procure competitive-price
LNG
 Examine potential opportunities to participate in the Renewable Energy
Development

Ongoing Pursue development of Next-Generation Technology such as CCS*5・
CCUS*7/Methane Hydrate/Survey Technologies for deep sea mineral
resources Develop New business model in field adjacent to existing businessleveraging our technologies and experience Identify new business seeds and solicit ideas internally

Next-Generation Technology Development
 Achieved a cumulative total of 300,000 tons of CO2 injectionin the CCS*5 demonstration project at Tomakomai, Hokkaido

New
Business

New Business Model Construction○ Conducted a study of LNG bunkering framework based on
Tomakomai Port
New business seeds Identification○ Started a study to build value chain for SAF*6 with usedcooking oil as feedstock

Notes*1 Timing of the achievement is unforeseeable due to COVID-19 pandemic situation*2 Timing of the production commencement is unforeseeable due to decline of oil price*3 Infrastructure/Utility*4 Promoted by Fukushima Gas Power Co., Ltd. in which JAPEX and business partners participate*5 Carbon dioxide Capture and Storage

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

*6 Sustainable Aviation Fuel
*7 Carbon dioxide Capture, Utilize, and Storage

8

Financial Position and Fund Allocation Policy
Consolidated
Financial Position

FY2022 target

FY2018FY2019Reduce interest-bearing debt by approx. ￥100 to ￥120 bn.

Cash and deposit *1：￥88.1bn.

￥119.9bn.

Place equal weight on E&P and non-E&P in terms of facilitationof growth investment, under the financial discipline of the
Debt-to-EBITDA ratio at less than 2.0 times

Investment Securities： ￥137.7bn.

￥88.9bn.

Interest-bearing debt*2： ￥151.7bn.

￥140.8bn.

EBITDA*3：￥41.7bn.

￥58.2bn.

Debt-to-EBITDA ratio： Approx.3.6

Approx.2.4

Further enhance shareholder returns over the mid-to-long
term, in line with a basic policy of securing a long-term stablestream of dividends

Fund Allocation Policy for the FY2019-2022, FY2019 results and outlook for FY2020 onward
FY2019 investment
results

FY2019-2022 policy

Allocation

Improve the profitability ofexisting projects

Approx. ￥60 bn.

→

Approx. ￥7.0 bn.

→② Reduce interest-bearing debt

Approx.￥55 bn.

→

Approx. ￥11.0 bn.

→

Approx.￥65 bn.

→

Approx. ￥1.0 bn.

→￥50.0 per share ofannual dividend→

Continue stable payoutof dividends

Partially sold→Continue to verify①③ Facilitate growth investment④

Stable streamline of dividends andenhance shareholders return￥9 bn. or more *4→⑤

Verify the propriety of its
cross-shareholdings-→(Increased 10.0 yen from initial forecast)

FY2019-2022

Follow the initial policy(Planned ￥50.0 per share ofdividend in FY2020)

Notes*1 Cash and deposits and investment in existing projects do not include remaining funds set aside for the Garraf Project (FY2018 approx. ¥29.3 bn./FY2019 approx. ¥40.1 bn.) as well as additional investment to be allocatedto achieve the daily production of 230,000 barrels.
*2 Interest-bearing debt includes lease obligations, retirement benefit liabilities and contingent liabilities.
*3 EBITDA is the total of operating income, depreciation and interest and dividends received.
*4 Funds to be allocated for shareholder returns are based on the premise that amount of dividends being paid remain unchanged from the dividend forecasts for FY2019
annual dividends. (￥40.0 or more per share of annual dividends)

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

9

Involvement in ESG Issues

Environment
SocialGovernance
Notes

FY2019 result

FY2020 outlook (Planned timing)

Contribution to the Low-carbonazation
 Established the dedicated organization for renewable energy
development

Response to the TCFD*1 Recommendations
 Consolidate a system of risk management including risks related toclimate change (within FY2020)
 Establish GHG*2 emission target and monitoring system (within
FY2020) Planned to gradually expand the response to the TCFD*1
recommendations, including information disclosures

Accelerated correspondence to Environmental issues
 Introduced Internal Carbon Pricing (ICP) to the investment
evaluation process for JAPEX's main businesses
Response to the TCFD*1 Recommendations
Started to annually report Board of Directors of business risks
including such related to climate change
Stable Energy Supply and contribution to society Assigned staff in admin. Dept. to promote digitaltransformation (DX)

Stable Energy Supply and contribution to society
 Start of commercial Fukushima Natural Gas Power Plant (April
2020)

Developing a Rewarding work environment
 Appointed a first female general manager
 Revised Personnel Systems：Introduced the role-based payroll
 Implemented development program for managerial talent

Developing a Rewarding work environment
 Review human resource development and training system (within
FY2020)Strengthen Corporate Governance Structure Increased the number of outside directors from 2 to 3
 Restructured the member of Executive Committee as decision
making bodyStrengthen Corporate Governance Structure Increase the number of outside directors from 3 to 4 (June 2020*3)
 Shorten the term of Directors from 2 to 1 year (June 2020*3)
 Revise remuneration plan for Directors (June 2020*3)

Promotion of compliance Revised Code of Conduct into Code of Ethics and Conduct

Promotion of compliance Participate in UN Global Compact (within FY2020)

Risk Management
 Revised BCP assumed severe earthquake in the metropolitan
area

Risk Management
 Formulate BCP under COVID-19 pandemic situation*1 Task Force on Climate-related Financial Disclosures*2 Greenhouse gas*3 To be proposed in the general meeting of shareholders in June 2020

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

10

Ⅱ. FY3/20 Financial Results
Michiro Yamashita
Director, Managing Executive Officer

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

11

Natural Gas Sales for FY3/20 (Year-on-Year)
FY3/19(a)Net sales：Million Yen
Natural gas

Sales volume

Million M3

FY3/20(a)Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales

1,731

67,8201,699

67,231-31-1%① -588-0%1,243

65,435

1,268

64,965

+24

+1%

-469

-0%

-48

-7%

-

-

-56

-11%

-119

-5%

Sales by region
Japan（Gas produced in Japan）

Overseas*1

Million M3

630

-

582

-

487

2,384

431

2,265

Comments on main factors for change①Growth in sales price in Japan②Decrease in shale gas sales volume in Canada*1 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

12②Crude Oil Sales for FY3/20 (Year-on-Year)
FY3/19(a)Net sales：Million Yen
Crude Oil

Thousand KL

FY3/20(a)Sales volume

Net sales

Sales volume

3,064

124,696

4,563

173,177

261

13,746304

14,800366

16,5991,123

45,372

1,176

30,116

1,639

45,025

ChangeNet sales

Sales volume①

Net sales+1,499+48%+48,481

+38%

+43

+16%

+1,053+7%②+756 +206%+28,773

+173%

③

+463

+14,909+49%

Equity oil sales
Crude oil - Japan*1
Crude oil - overseas*2

Thousand KL

Diluted bitumen*3+39%

Sales price and exchange rate
Crude oil price (CIF)
Diluted bitumen*3
Exchange rate

USD/bbl
JPY/USD

FY3/19(a)FY3/20(a)Change

71.94

68.11

-3.83

-5%

36.67

39.85

+3.18

+8%

110.35109.15-1.20-1%Comments on main factors for change①Growth in sales volume of overseas crude oil and diluted bitumen②Growth in crude oil sales volume of Garraf Oil Field, Iraq
③Growth in bitumen sales volume of the Hangingstone Lease in Canada, and improved price differential between WCS*4 and WTI*1 Exclude purchased crude oil*2 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*3 Royalty is excluded in the net sales and price of diluted bitumen*4 Western Canadian SelectCopyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

13

FY3/20 Results (Year-on-Year)
Comments on main factors for change
Increase factor “+” / Decrease factor “( )”Million Yen

FY3/19(a)FY3/20(a)Net sales

267,980

318,822+50,842+18%

Gross profit

34,84647,042+12,196

+35%

788

893

+104

+13%

31,74331,864+121+0%Exploration expenses
SG&A expenses

Change2,313

14,283+11,970+517%

Non-operating income

10,20918,351+8,141+79%

Ordinary profit

12,52332,635+20,112

+160%

550

-731

-1,282-%-1,254

4,788+6,043-%

Profit (loss)
attributable to noncontrolling interests

-441

299

+741

-%

Profit attributable toowners of parent

14,77026,815+12,044+81%

Operating profit

Extraordinary income(loss)
Income taxes

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

14

Gross profit
Domestic business
Overseas business+¥0.2 bn.
+¥11.9 bn.

Non-operating income
Equity on earnings(¥0.5 bn.)
Foreign currency translation adjustments on debt etc.
(FY3/19) Loss of ¥5.2 bn. → (FY3/20) Gains of ¥2.4 bn.

Dividend income(FY3/19)Gains of ARO cancellation due tosale of the Hangingstone lease interest+¥7.7 bn.
+¥3.5 bn.
(¥3.2 bn.)

Extraordinary income(FY3/19) Gain on sale of property(¥0.7 bn.)
Impairment loss on Amarume Oil Field in Japan(¥0.5 bn.)
Income taxes(FY3/19) Increase in tax expense due to absence of
one-time factor incurred in previous period(¥3.1 bn.)
(FY3/19) Application of foreign tax credit on Garraf
Project(¥2.6 bn.)
Tax expense of JACOS(¥1.2 bn.)
Tax effect of U.K. North Sea Seagull Project+¥1.5 bn.

Ⅲ. FY3/21 Forecasts
Michiro Yamashita
Director, Managing Executive Officer

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15

Price Assumptions for FY3/21 Forecasts
Upper: from January 2019 to March 2020
Full year

Lower: from January 2020 to March 2021
Jan.-Mar.
WTI

USD/bblCrude oil price(CIF)

USD/bblExchange rate

JPY/USD

JACOS
Diluted bitumen*1

USD/bblJML
Natural gas*2

CAD/mcf

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

2019 (a)

54.90

59.82

56.45

56.96

-

57.14

2020 (f)

46.17

35.00

35.00

35.00

-

37.72

2019 (a)

-

68.77

69.95

64.72

69.47

68.11

2020 (f)

-

40.00

40.00

40.00

40.00

40.00

2019 (a)-111.11108.26107.71109.29109.152020 (f)-108.00108.00108.00108.00108.002019 (a)

37.98

44.20

39.83

36.62

-

39.85

2020 (f)

22.45

19.34

20.08

20.04

-

20.52

2019 (a)

2.28

1.33

1.41

2.02

-

1.77

2020 (f)

2.14

1.80

1.80

1.80

-

1.88

*1 Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*2 Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

16

Change in Sales Classification
Changed the classification of sales, to associate with E&P and Non-E&P defined in our Long-term Vision 2030


Reorganized current classification into E&P, Infrastructure & Utility, and Other businesses, triggerd by the start of full scale business of
power generation.

Included “Natural Gas -Japan“ in the I&U, based on our recognition that Natural Gas business in Japan is highly integrated with ourdomestic infrastractures.

■FY3/20■FY3/21～
Described in this material

Described in this material

Japan

Japan
Crude oilOil and gas
Natural gas

Crude oilOverseas
E&P

Purchased oil

Overseas
Purchased oil

Diluted bitumen

Diluted bitumen

Japan

Natural gas

Overseas

Overseas

Natural gas

Japan

LNG

Infrastructure& Utility

Contract services

Other businesses

New addition

LNG
Electricity
Others＊1
Contract services

Oil products /merchandise

Otherbusinesses

OthersOil products /merchandise
Others*1 Include net sales from commissioned regasification of LNG
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

17

E&P Business Sales Forecasts for FY3/21
FY3/20 (a)Net sales：Million Yen

FY3/21 (f)ChangeSales volume

Net sales

Sales volume

Net sales

Sales volume-

175,443-

74,618-2,924

128,152

1,797

50,666-1,127304

14,800

318

8,597

1,123

45,37290

2,406

Purchased crude oil

1,496

67,9791,390

39,662

Diluted bitumen*2

1,639

45,025

1,520

431

2,265

506

E&P Business-Net sales-①-100,825

-57%

-39%

-77,487

-60%

+14

+4%

-6,203-42%-1,033-92%-42,966

-95%

-107

-7%

-28,317-42%

21,191 ③

-119

-7%

-23,835-53%

2,762 ④

+75

+17%

+496

+22%

Equity oil & Gas
Crude oil
Crude oil
- Japan
Crude oil- overseas*1

Natural Gas- Overseas＊3

Thousand KL

Million M3②

Comments on main factors for change①Decrease in crude oil sales volume in oversea, and decrease in sales price and volume of diluted bitumen②Decrease in crude oil sales volume of Garraf Oil Field, Iraq
③Decrease in diluted bitumen sales volume and price of the Hangingstone Lease, Canada④Growth in shale gas sales volume in Canada*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

18

Infrastructure & Utility Business Sales Forecasts for FY3/21
FY3/20 (a)Net sales：Million Yen

Infrastructure &Utility Business-

FY3/21 (f)ChangeSales volume

Net sales

Sales volume

Net sales-

88,658-102,188

64,965

1,229

55,458

Sales volume-

Net sales①-+13,530+15%-9,508-15%

Breakdown
Natural Gas- JapanMillion M3

1,268- Produced in Japan

-3%

-68

-12%
+10%

582

-

514

Thousand Ton

273

19,395301

18,493+27

Electricity

Million kWh

110

974

2,763

22,835② +2,653 +2,408%

Others*1

-

-

5,402

LNG

-

3,323

-

-40

-

-

-

-

-902

+21,861 +2,244%③+2,079Comments on main factors for change①Growth in electricity sales volume②Growth in electricity sales volume owing to the start of commercial operation of the Fukushima Natural Gas Power Plant③Growth in commissioned regasification sales revenue related to LNG regasification commissioned from Fukushima Natural
Gas Power Plant*1 Include net sales from commissioned regasification of LNG

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

19

-5%

+63%

FY3/21 Forecasts
Comments on main factors for change
Increase factor “+” / Decrease factor “( )”Million Yen

FY3/20 (a)FY3/21 (f)Net sales

318,822

223,685-95,138-30%

Gross profit

47,042

24,996-22,047

-47%

893

988

+95

+11%

SG&A expenses

31,86432,230+365+1%Operating profit (loss)

14,283-8,222-22,506-

Non-operating income

18,351

6,083-12,268-67%

Ordinary profit (loss)

32,635-2,139-34,774-

Extraordinary income(loss)

-731

-29

+703

-

Income taxes

4,788

1,853

-2,936-61%

Profit (loss) attributable
to non-controllinginterests

299

-828

-1,128-

Profit (loss) attributableto owners of parent

26,815-3,193-30,008-

Exploration expenses

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Change20

Gross profit
Domestic business
Overseas business(¥4.5 bn.)(¥17.5 bn.)Non-operating income
Equity on earnings(¥7.1 bn.)
Foreign currency translation adjustments on debt
(FY3/20) Gains of ¥2.4 bn. → (FY3/21) Not expected

Dividend income
Interest income(¥2.4 bn.)(¥1.6 bn.)(¥0.4 bn.)

Extraordinary income(FY3/20) Impairment loss on Amarume Oil Field in Japan+¥0.5 bn.

Income taxes
Decrease in taxable income+¥2.9 bn.

Sensitivities Analysis on FY3/21 Forecasts basis
FY3/21
Assumptions

Crude oil price

Crude oil price
(CIF)
USD
40.00/bbl

Impacts on profit（Million Yen）
Fluctuation

OperatingprofitNatural gas
price in Canada¥108.00/USD
CAD 1.88/mcf¥82.00/CAD

Main factors for change

Increase factor “+” / Decrease factor “( )”+ Sales of oil and gas

Increase by
1USD/bbl

WTI
USD 35.00/bbl
Exchange rate

Profitattributable toowners ofparent1 weaker yen
against USD

520

460

(Increase in LNG procurement cost)

330

311

+ Sales of diluted bitumen

20

-20

+ Sales of oil and gas(Increase in LNG procurement cost)+ Sales of shale gas in Canada

Increase by
1CAD/mcf

640

670(Increase in operation cost of theHangingstone lease)

・Changes in equity method investment gain is not included in the above amount.
・In addition to the impact of exchange rate fluctuations shown on the above, translation adjustments of foreign-currency-denominated receivables andpayables may be incurred.
・Actual profits may be influenced by a variety of other factors besides crude oil prices and exchange rates.

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

21

Appendix

1. Net Sales Breakdown
2. Financial Results
3. Cash Flows and Financial Ratio
4. Business Base

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

22

1.1 Net Sales Breakdown - E&P BusinessMillion Yen

FY3/19(a)Full year

Sales of E&P business

FY3/20(a)
1Q

2Q

3Q

FY3/21(f)4Q

Full year
1Q-4Q

Full year
5.14

127,080

54,13339,28451,85930,165

175,443

74,618

1,888

891

578

853

601

2,924

1,797

94,57942,717

26,185

39,146

20,103

128,152

50,666

261

79

68

77

79

304

318

13,746

3,997

3,374

3,621

3,807

14,800

8,597

366

465

163

314

178

1,123

90

16,59921,737

6,981

14,4702,182

45,372

2,406

1,260

346

346

460

343

1,496

1,390

64,233

16,982

15,82921,054

14,112

67,97939,662

1,176

402

436

452

348

1,639

1,520

30,116

10,68912,696

12,2889,351

45,02521,191

487

108

104

106

111

431

506

2,384

726

403

424

710

2,265

2,762

Crude oil price (CIF) (USD/bbl)

71.94

68.77

69.55

64.72

69.47

68.11

40.00

Exchange rate (JPY/USD)

110.35111.11108.26107.71109.29109.15108.00

Diluted bitumen*2 (USD/bbl)

36.67

37.98

44.20

39.83

36.62

39.85

20.52

JML natural gas*4 (CAD/mcf)

1.69

2.28

1.33

1.41

2.02

1.77

1.88

Sales volume of Crude oil(Thousand KL)

Net sales
Sales volume of Crude oil - Japan(Thousand KL)

Net sales
Sales volume of Crude oil - overseas*1(Thousand KL)

Net sales
Sales volume of Purchased crude oil(Thousand KL)

Net sales
Sales volume of Diluted bitumen*2(Thousand KL)

Net sales
Sales volume of Natural gas -overseas*3(Million M3)

Net sales*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)*4 Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

23

1.2 Net Sales Breakdown – Infrastructure & Utility BusinessMillion Yen

FY3/19(a)Full year

Sales of Infrastructure & Utility
business

FY3/20(a)
1Q

2Q

3Q

FY3/21(f)4Q

Full year
1Q-4Q

Full year
5.14

91,76823,171

17,13020,947

27,40888,658102,188

1,243

267

266

323

411

1,268

1,229

65,435

14,846

13,386

16,083

20,64964,96555,458

630

137

132

149

163

582

514

322

111

38

56

67

273

301

22,913

7,501

2,817

4,082

4,992

19,395

18,493

2

1

0

0

107

110

2,763

Net sales

112

40

31

23

878

974

22,835

Others*1

3,306

782

895

757

887

3,323

5,402

sales volume of Natural gas – Japan(Million M3)

Net sales
Sales volume of natural gas
Produced in Japan(Million M3)
Sales volume of LNG(Thousand ton)

Net sales
Sales volume of Electricity(Million kWh)

*1 Include net sales from commissioned regasification of LNG

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

24

2.1 Financial Results
Million Yen

FY3/19(a)Full year

Net sales

FY3/20(a)1Q

2Q

FY3/21(f)3Q

4Q

Full year
1Q-4Q

Full year
5.14

267,980

93,252

69,09385,47271,003

318,822

223,685

E&P Business

127,080

54,13339,28451,85930,165

175,443

74,618

Infrastructure & Utility Business

91,76823,171

17,13020,947

27,40888,658102,188

Others49,131

15,94812,67812,665

13,42954,721

46,878

Cost of sales

233,133

80,81258,43273,417

59,118

271,780

198,689

Gross profit

34,846

12,440

10,661

12,055

11,88447,042

24,996

788

217

140

358

176

893

988

SG&A expenses

31,743

7,605

7,407

7,893

8,957

31,86432,230Operating profit (loss)

2,313

4,617

3,113

3,803

2,750

14,283-8,222Non-operation income

10,209

4,292

1,613

2,410

10,035

18,351

6,083

Interest income

1,598

307

277

261

249

1,096

641

Interest expenses-4,130-1,237-1,196-1,052-1,154-4,641-3,723

Dividend income

2,102

1,649

8

1,337

2,621

5,618

3,964

12,550

2,390

2,015

2,391

5,163

11,9604,848

Provision for overseas investment

358

85

85

85

85

342

342

Foreign exchange gains and loss

-5,296

1,099

384

-654

1,595

2,425

-

Other

3,027

-3

38

41

1,473

1,550

11

Ordinary profit (loss)

12,523

8,909

4,726

6,213

12,78532,635-2,139

550

-4

-14

-144

-568

-731

-29

Profit (loss) before income taxes

13,074

8,905

4,712

6,068

12,21731,903-2,168

Income taxes-1,254

-206

1,718

1,593

1,682

4,788

1,853

-441

159

-124

-10

275

299

-828

14,770

8,951

3,118

4,486

10,25826,815-3,193

Exploration expenses

Share of profit of entities accounted forusing equity method

Extraordinary income (loss)

Profit (loss) attributable to non-controllinginterests
Profit (loss) attributable to owners of parent

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

25

2.2 Analysis of FY3/20 Net Income Result
Billion Yen

JACOS
JML

+11.9 bn.
+1.3 bn.

Non-operating income(loss) ＋8.1 bn.

Operating profit(loss)+11.9 bn.

JML
JACOS

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

+7.7 bn.
+0.6 bn.

26

Incometaxes/Profit(loss)
attributable to noncontrolling interests-6.7 bn.

Kangean
SODECO-1.0 bn.
+0.3 bn.

2.3 Analysis of FY3/21 Net Income Forecasts
Billion Yen

JACOS-17.4 bn.
Japex Garraf -0.7 bn.

Non-operating income(loss) -12.2 bn.

Operating profit(loss) -22.5 bn.

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

27

SODECO
Kangean-8.8 bn.
+1.4 bn.

2.4 Segment Profit
Million Yen

FY3/19(a)Full year

Operating profit

Japan

North
America

MiddleEast

Others*1

1Q

2Q

3Q

FY3/21(f)4Q

Full year
1Q-4Q

Full year
5.14

19,308

5,623

3,564

4,605

5,041

18,83415,026

Share of profit of entities
accounted for using equity
method

165

59

22

19

51

152

617

Operating profit (loss)-9,751

1,311

1,476

1,004

-370

3,422

-14,006

Share of loss of entities
accounted for using equity
method

-10

-

-

-

-

-

-

-157

-71

-13

-25

-54

-164

-167

Share of profit (loss) ofentities accounted for using
equity method

-

-

-

-

-

-

-

Operating profit (loss)

955

-169

235

359

187

612

-140

Share of profit (loss) ofentities accounted for using
equity method

2

-1

0

-4

-3

-8

-7

Operating profit (loss)

-7

-1

0

0

0

-1

0

Share of profit of entities
accounted for using equity
method12,392

2,331

1,993

2,376

5,115

11,816

4,237

Operating loss

EuropeFY3/20(a)*1 Include the Sakhalin Oil and Gas Development Co., Ltd., Energi Mega Pratama Inc., etc.

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

28

3. Cash Flows and Financial Ratio
Million Yen

FY3/19(a)FY3/20(a)Full year
Cash flows from operating activities

1Q-2Q

FY3/21(f)Full year
1Q-4Q

Full year
5.14

30,97037,061

69,89525,462

Depreciation

23,296

12,42225,19023,951

Recoverable cost (Recovery)

11,11826,58341,040-Cash flows from investing activities-13,969-11,353-18,701-28,375

Purchase of property, plant andequipment-12,955-2,464-7,566-19,048

Recoverable cost (Payments)-25,107-13,865-30,226-13,379

Cash flows from financing activities-15,493-8,435-13,743-14,160

Interest-bearing debt*1

151,726-

140,848

125,112

EBITDA*2

41,736-58,29623,875

3.6

-

2.4

5.2

Debt-to-EBITDA ratio*1 Interest-bearing debt includes lease obligations, retirement benefit liabilities and contingent liabilities*2 EBITDA is the total of operating income, depreciation, interest and dividends received on investment cash flow

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

29

4. Business Base - Major Assets in Production & Development
Canada Oil Sands Project(Production)

Canada Shale Gas Project

U.K. North Sea Seagull Project Russia Sakhalin-1 Project (Production / Development)(Development)(Production / Development)

Oil and Gas Fields in Japan
Iraq Garraf Project(Production / Development)

United States Tight Oil Project(Production / Development)(Production / Development)Indonesia Kangean Project(Production)

Blocks owned by the JAPEX Group
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

30

Japan-1 E＆P / Infrastructure & Utility
E&P Business - Oil and Gas Fields in Japan

Operating 10 oil and gas fields in Japan
Pursuing compensation of reserves and maintaining the
production volume
Pursuing additional E&P potential including national surveys●Major projects in progress• Development of Yufutsu Oil and Gas Field: In progress of*development toward production commencement in fiscal 2020*1

I/U*2 Business – Natural Gas Supply Chain in JapanTransported and supplied natural gas by various methods
such as pipelines, tank trucks, and tankers
Built a network that enable supply LNG to a wider area aswell as to receive and store LNG from overseas on the Pacificside of the country in addition to the Sea of Japan side

I/U Business – Electric Power・Sales

Fukushima Natural Gas Power Plant*3 started
commercial operation of Unit 1 (April 2020), Unit 2
starts commercial operation in the summer of 2020
Established Renewable Energy Business Dept. to pursue
opportunities to participate in renewable energy
development in various fields such as wind power andbiomass energy*1 Timing is unforeseeable under low oil price situation*2 I/U stands for Infrastructure/Utility*3 Promoted by Fukushima Gas Power Co., Ltd., which is funded by five private companies
including JAPEX as a business partner (JAPEX share 33%)
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

31

Japan-2 New Business Development
Developing Next-generation TechnologyAchieved a CO2 injection target of 300,000 tons in a CCS demonstration project in the Tomakomai area
implemented through Japan CCS Co., Ltd. (November 2019)
Promoting establishment of research technology for deep-sea mineral resources such as hydrothermal
deposits, and construction of industrialization model for deep sea resource development assuming rare-earth
minerals, through "the Research and Development Partnership for Next-Generation画像提供：日本CCS調査㈱Technology of Marine
Research Survey (J-MARES)".
Continuing research and development work on resource recovery technology and exploration technology
related to sand layer type methane hydrate through Japan Methane Hydrate Operating Co., Ltd.

Constructing a New Business ModelConducted a study with public and private sectors of LNG bunkering framework based on Tomakomai Port
Promoted the development of LNG rail transportation in overseas

Identifying Unique Business Seeds
Started a study to build a value chain for sustainable aviation fuel with used cooking oil as feedstock
Conducted examination and progress confirmation of projects that solicited from across the Company or
brought in from other companies

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

32

North America E&P Business
Canada Shale Gas Project

Canada Oil Sands Project
Project

Canada Oil Sands Co., Ltd. (CANOS)

company

JAPEX‘s share 94.58%
Overseas subsidiary：
Japan Canada Oil Sands Ltd. (JACOS)

Block

Hangingstone Leases (Operator)

Interest

75％ (JAPEX net 70.935%)

Project
company

JAPEX Montney Ltd. (JML)

Block

North Montney Area

Interest

10% (JAPEX net 5.5％ )Status

Production
StatusContinuing flexible operation in line with market

Operator

conditions with 20,000 bbl/d level bitumen
production

Gross production
rate

Production/Development

Executing the development plan prioritizing thearea with high economics. Working on to maximize
the value and economics of the project.

Petronas Energy Canada Ltd.

Gross production 12,530,000M3/d Approx. 74,000boe/d
rate

21,000bbl/d as average of March
2020

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

JAPEX’s share 55％

as average of March 202033

Europe/Middle East

E&P Business

U.K. North Sea Seagull Project

Iraq Garraf Project

Project
company

JAPEX’s share 100％

Project
company

Japex Garraf Ltd. JAPEX’s share 55%

Block

Seagull Field

Field

Garraf Oil Field

Project share

30% (JAPEX Net 16.5%)

Interest

15％ (JAPEX Net 15％)

JAPEX UK E&P Ltd.

Production / Development

StatusDevelopment

StatusOperator

Development work in progress to commencement
production in 2021(Timing of achievement is
unforeseeable under the Covid-19 pandemic
situation)

Neptune E&P UK Limited

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

34*Plateau production target of 230,000 bbl/d(Timing of achievement of the Plateau Production
Target is unforeseeable under the Covid-19
pandemic situation)*Suspended all operations since mid-March 2020

Operator

PETRONAS Carigali Iraq Holding B.V. (PCIHBV)

Gross
production rate

Approx. 68,000bbl/d
as average of March 2020 before suspensionof production

Other Areas

E&P BusinessIndonesia Kangean Project

Russia Sakhalin-1 Project

Energi Mega Pratama Inc.

Project
company

JAPEX’s share 25%
2 other affiliates

Block

Kangean Block

Interest

100％ (JAPEX net 25%)

Status

Production

Operator

Kangean Energy Indonesia Ltd.

Gross
production
rate

5,300,000M3/d

Approx. 32,000boe/d

as average of March 2020

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

35

Project
company

Sakhalin Oil and Gas Development
Co., Ltd. (SODECO)

Block

Chayvo, Odoptu and Arkutun-Dagi
FieldsInterest

30%（JAPEX net 4.59%）

StatusDevelopment/ Production

Operator

Exxon Neftegas Ltd.

JAPEX’s share 15.29%

Cautionary Statement
This document contains future outlooks such as plans, forecasts, strategies, and others
which are not historical fact and these are made by the management’s judgement basedon the obtainable information at the time of the disclosure. Actual results may significantly
differ from those future outlooks due to various factors.
This document is not intended to invite 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:(a) = Actual results(f) = Forecasts
FY = Fiscal Year (FY3/20, for instance, means 12 months ended March 31, 2020)
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. (JAPEX)Tokyo, JAPANTEL: +81-3-6268-7111
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

36