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

Presentationof Consolidated Financial Results
for the Fiscal Year Ended March 31, 2013
May 13 , 2013

Japan Petroleum Exploration Co., Ltd.
copyright©2013 JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights reserved.

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 the prior consent of JAPEX.
Note: The following abbreviations are used within this document:
1H = First half (1Q-2Q)
2H = Second half (3Q-4Q)(a) = Actual result(e) = Estimate
FY =Fiscal Year (FY2013, for instance, means 12 months ended March31, 2013)
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. (JAPEX)Tokyo, JAPANTEL: +81-3-6268-7111

2

Contents
１．Business Overview
２．Actual results for FY2013
３．Estimates for FY2014

3

Business Overview
President

Osamu Watanabe

4Corporate Vision and Basic Strategies for JAPEX Expansion
While positioning E&P business at the Company’s main activities, endeavor to increasebusiness opportunities by shifting E&P activities overseas and pursuing new investment indomestic natural gas as well as environment and innovative technology as the means to
help realize business expansion.

E&P
business
Maximize the value ofexisting overseas assets
Maximize the value ofexisting domestic
assetsPhase 1

Phase 2

Shift to overseas
investment

Increaseproduction
volumePhase 3
Sustain andincrease
reserves

E&P： exploration and Production

Domestic
natural gas
business

Cultivating natural gas demand
Engage in wide-ranging activities including the
upgrade of infrastructure

Environment& innovativetechnology
business

Accelerate large-scale project activities（CCS, MH）
Cultivate new fields including renewable energy5Current Status of Domestic E&P Businessand Reinforcement of Domestic Business
Though JAPEX posted an impairment loss of 37 billion yen in extraordinary loss for business assets of
Yufutsu oil and gas field, net loss became smaller with rise in crude oil and natural gas sales price.
To maximize the value of its domestic business, we aim to build stable cash flows with reducing
operating costs, pursuing exploration and development potential in Hokkaido and increasing natural
gas sales and securing stable supply.
■ Actual results for FY2013 (Highlight)[Million JPY]

FY2012(a)■ Maximize the value of its
domestic business

FY2013・Reducing operating costs

Revised(Oct.2012)
(e)

(a)

Net Sales

230,638

222,228

231,086

Operating Income

15,045

10,304

13,906

Ordinary Income

22,15918,85528,082Net Income

17,027(11,630)(865)

FY2013： Rise in crude oil and natural gas sales
price made up major part of the impairment loss of
37 billion yen.

6・Pursue exploration and development
potential in Hokkaido
・Increasing natural gas sales andsecuring stable supply

Realizing the business strategy
by building stable cash flows

Domestic exploration plan for FY2014● Extension well drilling schedule for FY 2014
1Q

Total
Depth
Katakai SK-30D
Katakai SK-30D-1

5,040 m5,395 mAkebono Loc.A6H

5,800 mIwafuneoki East
Loc.Q

3,600 m

4

5

2Q
6

7

8

3Q
9

10

4Q

11

12

1

2

3

Akebono Loc.A6H(5,800m)■ Geophysical prospecting survey plan : 2 sites
2D seismic
survey31km in Niigata Prefecture (Niigata plains)

2D seismic
survey100km in Niigata Prefecture (Uonuma)● Result for FY 2013
Total
Depth

1Q
4

5

2Q
6

7

8

3Q
9

10 11 12 1

4Q
2

3

Numanohata (T1)
East SK-3DH

2,275 mSucceeded

Akebono (T1)
SK-2D-1H

2,050 mSucceeded

Katakai SK-29D
Katakai SK-29D-1

4,900 m
4,940 mSucceeded

Katakai SK-30D
Katakai SK-30D-1

5,040 m5,395 mContinued

7

Iwafuneoki East
Loc.Q(3,600m)
Niigata Plains 2D(31km)
Katakai SK-30D pilot well (5,040m)
Katakai SK-30D-1 main well (5,395m)
Uonuma 2D(100km)

Overseas business : Basic strategy
Oil sands development(production & development)

CanadaSakhalin 1 Project

Natural Gas・LNG Project(production)(production・planning of LNG plant)

Sakhalin

Iraq : Garraf oil field(development)

Middle East
North Africa

Japex (U.S.)Corp.
(production)

Southeast Asia

-Kangean Block (production & development)-Block A Aceh (development & exploration)-Universe Gas & Oil (production)-Japan CBM (exploration)
Legend5 Strategic regions
Blocks in which our consolidated subsidiaries,
equity-method affiliates hold interest.

8

Current status of overseas business ① Indonesia: Kangean Block

Pagerungan Utara oil field

Jakarta

Bali Island

Project
Companies

East Javagas pipeline

Kangean Energy
Indonesia Ltd. (KEI)+ 2 other equity-method affiliates

Interest（Production suspended）

West Kangean gas field(Exploration)

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

to Surabaya

TBS gas field （Production-partly）

Terang gas field

Sirasun gas field

Batur gas field

South Saubi

２５％

サウス・チュルカンSouth Celukan

Operator： KEI■ Current gross production : Crude oil equivalent of around 50,000 boe/d□ TSB gas field(Phase1) Terang ： Commenced production in end-May 2012.
Maximum production 0.3billion cf/d (around 50,000 boe/d in crude oil equivalent)(Phase2) Sirasun, Batur : Preparing for development

14

Current status of overseas business ② Sakhalin 1

Project

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

Arkutun-Dagi

Sakhalin 1 Consortium

SODECO

JAPEX
15.29％

Exxon Neftegas Ltd.
３０％
SODECO

Ohters
４０％

Block

３０％

Minister of Economy,
Trade andIndustry : 50.00％

Others
34.71％

ChayvoChayvo, Odoptu ： Production（Total production of Crude Oil：Around 120,000 bbl/d*）*（Sakhalin 1 project total for FY2013. JAPEX estimates.）

Arkutun-Dagi ：Developing toward production of Crude Oil (Target year : 2014)13

Current status of overseas business ③ Iraq
Project
company■ Time Schedule

Japex Garraf Ltd

Interest

３０％

2013

First Oil to produce at a minimumof 35,000 bbl/d and thereafter
progressively increase theproduction levels to 60,000 bbl/d

2014～2016

Increase production gradually

2017

Achieve plateau production targetof 230,000 bbl/d(cost share 40％)
Operator ： PETRONAS

Field

GarrafDeveloping2013 Expected cumulative2030

production :Around 1.3 billion bbl

BaghdadGarrafGarraf Production Facility

11

BasrahCurrent status of overseas business ④ Canada oil sands
Project
company

Canada Oil Sands Co., Ltd. (CANOS)

Block

Hangingstone 3.75 section

Production(Interest) １００％

Cumulative
production of
28million bbl (asof endDecember,2012)

Operator : Japan Canada Oil Sands Ltd. (JACOS)

6,000～7,000 bbl/dExpansion project ofundeveloped part ofHangingstone area
(Interest) ７５％
Additional production of 20,000
bbl/d at the maximum
Other bitumen blocks (include
Corner, Chard & Thornbury)

Schedule(Interest) １２～１００％

Delineation well at Hangingstone expansion area

Development

Evaluation
towarddevelopment

2012

NOV： Acquisition of development approval
DEC： Final Investment Decision (FID)2013

FEB： Start construction

2016

1H: Plan to commence production

Calgary２０,０００bbl
６,０００～７,０００ bbl
at present

12

Daily production（max）

1H of 2016

Current status of overseas business ⑤ Canada natural gas・LNG Project
Natural Gas
development andProduction Project（Up-stream）

LNG Project（Middle-stream）

Block/
Candidatesite of
LNG plant

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

Interest

10% Interest

10% Equity

Operator

PETRONAS（Includes subsidiaries）

PETRONAS（Includes subsidiaries）

Current
Status

Production and sales of
Natural Gas

FEED■Project Schedule

Candidate site of LNG plant

North Montney

Prince Rupert

26 APR 2013

Conclusion of Contract

End of 2014

Plan to FID of LNG plant2014 ～ 2018

Construction of LNG plant

End of 2018

First LNG Production （12MMtonnes/y)British Columbia
Vancouver Calgary

Pacific
0

13

500km

（Reference）Integration with domestic natural gas businessWe aim to enhance the domestic natural gas business with Canada natural gas・LNG projectand Soma LNG receiving terminal plan.
・ Planning construction ofSoma LNG receiving terminal

・Increasing natural gas sales
in Greater Sendai Region

・Linkage of Soma LNG
receiving terminal (plan to FID)
and existing infrastructures
including Sendai pipeline.
・Target to cultivate new natural
gas demand in the Greater
Sendai region and to enhance
supply security.

・Increasing natural gas sales inCentral & South Hokkaido Region

Canada natural gas・LNG project

Establish an organic LNG supply
system using domestic vessels
and Yufutsu LNG receiving
terminal.

End of 2014 : FID of LNG plant construction (Plan)
End of 2018: Import LNG to Japan（Plan）

Cultivating new natural gas
demand in central & south
Hokkaido region.

Prince Rupert（LNG exporting terminal）

Central & South
Hokkaido Region

Building an integrated
natural gas supply
system over domestic
and overseas（Yufutsu LNG receiving
terminal）

Greater Sendai Region（Soma LNG receiving terminal-planned-）

14

Production volume and Proved reserves◆Actual production volume : 36,000BOED⇒Decreased 5% YOY. Main reason was Yufutsu oil & gas fields◆ Actual proved reserves : 307 million BOE⇒Increased 38% YOY. Main reason was FID of Canada oil sands expansion project

Aim to achieve the medium-term targets by ensuring progress in the Canada natural gas project,
Canada oil sands expansion project and Garraf project of Iraq
as well as the acquisition of new projects.

Production volume

Proved reserves(BOED)(Million BOE)

■overseas■domestic【Target 】

257

70,000

49

223

307

38

160

208

185

147

FY2011FY2012FY2013【Target 】

450

40,000 38,000 36,000

FY2011FY2012FY2013

FY2016* The above production volume and proved reserves are equivalent to the JAPEX Group’s interest.

15

FY2021Timeline of Projects & Investment Scale■Timeline

2013

2014

2015

CanadaOil sand expansion project
CanadaNatural gas（up-stream）◆Commence
production

2017

2018

2019

Expand production (plan)

Increase production gradually

CanadaLNG project （mid-stream）
Iraq
Garaff project2016◆FID（plan）◆Commence
LNG production◆Commence production and increase production

Japan
Soma LNG receiving
terminal （plan）■Investment scale・Financing
Total investment :own fund + free cash flows
external funds procured(including JOGMEC financing)
Estimated balance of liabilities（external funds procured, loan
guarantee. Include ourconsolidated subsidiaries）◆FID（plan）◆Commence
receiving LNG

2013
162 billion yen

2014～
200～250 billion yen(About a half)(rest)
2013/3 (a)64 billion yen
2014/3 (e)90 billion yen

16・ Control and optimize our debt
exposure utilizing external funds
procured, loan guarantee of
JOGMEC, project financing.
・ Secure stability in balance sheet
position.

CAPEX plan for FY2014[ Billion ￥]

FY10

FY11

FY12

FY13

FY14
(e)

CAPEX

28.8

21.9

23.8

25.3

162.0

Depreciation
andamortization

23.2

24.5

23.9

16.2

20.4

Main items of CAPEX for FY2014
Domestic CAPEX¥ 9.0 billion

Billion ￥1,800

Billion ￥
450

1,600

400

1,400

350

1,200

300

239

1,000

◆ Upgrading of production facilities

800

Overseas CAPEX ¥ 153.0 billion

232

1,530

246
163

600

◆ Canada:- Natural Gas ・ LNG Project- Development of Expansion for Hangingstone◆ Iraq:- Development of Garraf oil field

200

204

400
200

We plan to cover about half of CAPEX with our own
funds and free cash flows, and rest with externalfunds procured (including JOGMEC financing).
※Recoverable costs are included in “Depreciation & amortization”

17

150
100

47
241

-

250

FY10

31
188
FY11

78
159
FY12

50

188
65

90

FY13

FY14
（e）
(e)

CAPEX（overseas）(left axis)
CAPEX（domectic）(left axis)

Depreciation & amortization (right axis)

-

$140

¥120

$130

¥115
crude oil price USD/bbl （left axis）

¥110

$110

¥105

$100

¥100

$90

¥95

$80

¥90

$70

exchange rate JPY/US$（right axis）

¥85

$60

¥80

$50

¥75

$40

¥70
2010-04
2010-05
2010-06
2010-072010-08
2010-092010-10
2010-112010-122011-01
2011-02
2011-03
2011-04
2011-05
2011-06
2011-072011-08
2011-09
2011-10
2011-11
2011-12
2012-01
2012-022012-032012-04
2012-05
2012-06
2012-072012-08
2012-09
2012-10
2012-11
2012-122013-012013-022013-032013-04[crude oil price: USD/bbl]$120

Japan Crude Cocktail (JCC) Price in the first 10 days of April 2013
on a prompt report basis : USD 113.01/bbl
18

JPY 94.89/USD[foreign exchange rate: JPY/US$]

Trends in Crude oil prices and Foreign exchange rates

Actual results for FY2013 and Estimate for FY2014 (Highlight)
60■ Actual results for FY2013 ( vs FY2012)
FY2013(a)changeNet Sales

230.6

231.0

0.4

0%

45

Operating income

15.0

13.9

(1.1)

(7%)

40

Ordinary income

22.1

28.0

5.9

27%

35

Net income

17.0

(0.8)

(17.8)-%

30

JCC price
USD/bblExchange rate
Yen/USD

112.4378.93

114.67
81.71

2.24
2.78

231.0

55

FY2012(a)[ Billion ￥]

230.6

50

2%

■ Estimate for FY2014 ( vs FY2013)

210

22.1

15
15.0

17.0

185

5

231.0

232.6

1.6

1%

Operating income

13.9

20.7

6.8

49%

Ordinary income (left axis)

Ordinary income

28.0

28.7

0.7

2%

Net income (left axis)

Net income

(0.8)

21.5

22.3

-%

114.67100.00(14.67)

(13%)

81.71

90.00

8.29

10%

Yen/USD

0(5)

FY2012FY2013-0.8

Operating income (left axis)

180
FY2014(e)

FY2013： Decrease in costs & rise in sales pricemade up major part of the impairment
loss of 37 billion yen.
FY2014： Profit will improve reflecting thedepreciation decrease caused by
impairment loss.

19

195
190

13.9

Net Sales

Exchange rate

200
21.5

20.7

change

USD/bbl

205

28.7

28.0

FY2014(e)

JCC price

225

215

FY2013(a)[ Billion ￥]

230

220

20 ￥
Billion
10

235

Net Sales (right axis)

25

4%Billion ￥

232.6

175

Actual results for FY2013
Executive Vice President

Hiroshi Sato20

Actual Result

Actual results for FY2013 ( Highlight )[ Million ￥]FY2012
Actual

FY2013
Initialestimate(May 2012)

Revisedestimate ①(Oct. 2012)

Revisedestimate ②(Feb. 2013)

Actual230,638

214,653

222,228

228,749

231,086

Operating income

15,045

10,003

10,304

11,925

13,906

Ordinary income

22,15916,81918,85525,031

28,082

Net income

17,027

16,526(11,630)(5,152)(865)

Net Sales

JCC price

USD/bbl112.43100.00112.08113.99114.67

Exchange rate

Yen/USD

78.93

80.00

80.19

81.18

81.71

Bitumen price

CAD/bbl

49.81

52.91

48.76

50.69

50.71

Exchange rate

Yen/CAD

76.22

80.00

80.00

87.05

87.05

Initial estimate (May 2012)

Revised estimate ① (Oct. 2012)【＋】 Rise in crude oil prices【－】Impairment loss for the business assets for production operation of Yufutsu oil & gas field

Revised estimate ① (Oct. 2012)

Revised estimate ② (Feb. 2013)【＋】 Rise in crude oil prices 【＋】change of exchange rate 【＋】Increase in non-operating income

Revised estimate ② (Feb. 2013)

Actual results【＋】Rise in crude oil & natural gas sales prices 【＋】 change of exchange rate 【+】 Increase in non-operating income
Ordinary income +¥28.0 billion (+¥3.0billion )Net income -¥0.8 billion (+¥4.2billion )21

Actual Result

Actual sales of Natural gas in FY2013(vs FY2012)
FY2012Natural gas:
Of which,
Domestically produced gas:

FY2013

1H (a)

Full (a)1H (a)

Full (a)change1H

Full

Sales volume

million M3

742

1,730

685

1,455

(56)

(274)

Net sales

million ￥31,17074,95730,054

69,795(1,115)(5,162)

Sales volume

million M3

522

1,194

498

1,019

(24)

(175)

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Million M3

Natural gas(supplied by gas pipeline )

1,800
1,600

Sales volume （total）
1,730

1,400

1,455

1,200
1,000

Of which, domestically produced gas

1,194
1,019

800

Sales volume decreased by 274 million M3 (-16%) vs FY12
-Increase in demand for utility gas customers and industrial users
Net sales decreased by ¥5.1 billion (-7%) vs FY12600

- Increase in natural gas sales prices made up a part of the decrease in net
sales caused by a 274 million M3 volume decrease (-16%).

400
200
FY2012FY201322

Actual Result

Actual sales of Crude oil in FY2013 (vs FY2012)
FY 2012

Sales volume : Thousand KL
Net sales : Million ￥1H (a)FY 2013

Full (a)1H (a)

changeFull (a)1H

FullSales volume

896

1,778

920

1,684

24

(93)

Net sales

46,64989,891

46,46388,529(186)(1,362)

Domestically produced
crude oil:

Sales volume

239

529

240

468

0

(60)

Net sales

13,92530,351

14,291

28,167365(2,183)

Overseas subsidiary
crude oil:

Sales volume

1

2

1

5

(0)

3

Net sales

84

128

61

290

(22)

161

Sales volume

175

382

187

349

12

(33)

Net sales

4,207

9,137

4,708

9,694

501

557

JCC price

USD/bbl112.38112.43116.16114.67

3.78

2.24

Exchange rate

Yen/USD

81.07

78.93

80.35

81.71

(0.72)

2.78

Bitumen price

CAD/bbl

45.70

49.81

52.02

50.71

6.32

0.90

Exchange rate

Yen/CAD

83.38

76.22

76.77

87.05

(6.61)

10.83

Crude oil:
Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions

Domestically produced crude oil : 【- 】 Decrease in production volume

FY2013468

Bitumen : 【+ 】Rise in crude oil prices and weakening of the yen

FY2012529

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 Japex(U.S.) Corp., an overseas consolidated subsidiary.

23

Thousand- KL

200

Domestically produced crude oil

5

349
2

400

382
600

800

Overseas subsidiary crude oil

1,000
Bitumen

Actual Result

Actual results for FY2013 (vs FY2012)≪Causes of increase(+) or decrease(-) ≫FY2012(a)

FY2013(a)changeNet sales

230,638

231,086

448

Gross profit

56,27859,0102,732

Exploration expenses

7,805

13,086

5,280

SG&A expenses

33,42632,017(1,409)Operating income

15,045

13,906(1,139)Non-operating income(expenses)

7,114

14,176

7,062

Ordinary income

22,15928,082

5,922

311(34,522)(34,833)

4,746(6,439)(11,674)

696

1,352

655

17,027(865)(17,892)[ Million ￥]Extraordinary income(losses)
Income taxes
Minority interests in income
Net income

24

Gross profit
Domestic crude oil and natural gas+ ¥0.2 billion
LNG substitution expense- ¥0.3 billion
Transportation fee of natural gas+ ¥3.2 billion

Exploration expenses
Domestic exploration- ¥3.0 billion
Domestic exploration- ¥2.2 billion

Non-operating income (expenses)
Dividends income
Foreign exchange profit or los+ ¥4.1 billion+ ¥1.7 billion

Extraordinary income (losses)
Gain on transfer of mining rights + ¥2.8 billion
Impairment loss for the business assets for
production operation of Yufutsu oil & gas field- ¥37.0 billion

Estimate for FY2014
Executive Vice President

Hiroshi Sato25

Estimate for FY2014

Estimates for FY2014 (Point)
FY2013[ Million ￥]FY20141H (e)

Full (e)1H99,741

232,692(6,218)

1,606

13,906

9,294

20,722

7,515

6,815

3,062

28,082

12,462

28,7839,400

701(24,433)

(865)

9,677

21,511

34,11022,377

1H (a)

Full (a)105,958

231,086

Operating income

1,778

Ordinary income

Net Sales

Net incomechangeFull

JCC price

USD/bbl

116,16

114,67100.00100.00(16.16)(14.67)

Exchange rate

Yen/USD

80.35

81.71

90.00

90.00

9.65

8.29

Bitumen price

CAD/bbl

52.02

50.71

47.25

45.87

(4.77)(4.84)

Exchange rate

Yen/CAD

76.77

87.05

90.00

90.00

13.23

2.95

Point

FY2014 vs FY2013

Operating income Exploration expenses+¥ 3.9 billion

Ordinary income

 Non-operating income(expenses)-¥ 6.1 billion

Net income

 Extraordinary income(losses)+¥ 34.4 billion

 Income taxes-¥ 13.4 billion+¥ 6.8 billion+¥ 0.7 billion+¥ 22.3 billion

26： Decrease of dividends income

Estimate for FY2014

Estimated Natural gas sales in FY2014
FY2013Natural gas:
Of which,
Domestically produced gas:

Million M3

FY2014change1H (a)

Full (a)1H (e)

Full (e)1H

FullSales volume

Million M3

685

1,455

588

1,289

(97)

(167)

Net sales

Million ￥30,054

69,79530,51968,478465(1,317)

Sales volume

Million M3

498

1,019

416

887

(83)

(133)

Natural gas

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.

( supplied by gas pipeline )

1,600
1,400

Sales volume （total）

1,455

1,200

1,289

1,000
800

Of which, domestically produced gas

Sales volume decreased by 167 million M3 (-11%) vs FY2013

1,019
887

600

-Decrease in production volume

Net sales decreased by ¥1.3 billion (-2%) vs FY2013-Increase in natural gas sales prices made up a part of the decrease in net sales
caused by a 167 million M3 volume decrease (-11%).

400
200
FY2013

FY201427

Estimate for FY2014

Estimated Crude oil sales in FY2014
FY 2013

Sales volume : Thousand KL
Net sales : Million ￥1H (a)FY 20141H (e)

Full (a)changeFull (e)1H

FullSales volume

920

1,684

767

1,897

(154)

212

Net sales

46,46388,52938,524

95,935(7,939)7,406

Domestically produced
crude oil:

Sales volume

240

468

194

384

(47)

(84)

Net sales

14,291

28,167

11,18022,159(3,111)(6,009)Overseas subsidiary
crude oil:

Sales volume

1

5

7

369

6

363

Net sales

61

290

363

19,881

302

19,591

Sales volume

187

349

179

371

(8)

21

Net sales

4,708

9,694

4,815

9,623

106

(72)

JCC price

USD/bbl116.16114.67100.00100.00(16.16)(14.67)

Exchange rate

Yen/USD

80.35

81.71

90.00

90.00

9.65

8.29

Bitumen price

CAD/bbl

52.02

50.71

47.25

45.87

(4.77)(4.84)

Exchange rate

Yen/CAD

76.77

87.05

90.00

90.00

13.23

2.95

FY2014

384

369

371

FY2013468

Crude oil:
Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions

Domestically produced crude oil : 【－】Fall in production
volume and oil prices
Overseas subsidiary crude oil : 【＋】 commenced production of
JAPEX Garraf
Bitumen : 【－】Fall in crude oil prices

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.
Thousand KL
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are sum totals of the sales volumes andnet sales reported by two overseas consolidated subsidiaries (Japex (U.S.) Corp. and Japex Garraf Ltd.).

28

200

5
400

349
600

800

1,000 1,200

Domestically produced crude oil
Overseas subsidiary crude oil
BitumenEstimate for FY2014

Estimates for FY2014≪Causes of increase(+) or decrease(-) ≫FY2013(a)

FY2014(e)changeNet sales

231,086

232,692

1,606

Gross profit

59,01061,972

2,961

Exploration expenses

13,086

9,184(3,903)

SG&A expenses

32,01732,06649

Operating income

13,906

20,722

6,815

Non-operating income(expenses)

14,176

8,062(6,115)

Ordinary income

28,082

28,783701

Extraordinary income(losses)(34,522)(90)

34,433

Income taxes(6,439)6,502

13,429Minority interests in income

1,352

680

(672)

Net income(865)

21,511

22,377[ Million ￥]29

Gross profit
Domestic crude oil and natural gas+ ¥0.6 billion
LNG substitution expense+ ¥2.3 billion

Exploration expenses
Domestic exploration
Overseas exploration- ¥0.2 billion+¥4.1 billion

Non-operating income (expenses)
Equity in loss of affiliates+¥0.6 billion
Dividends income- ¥0.5 billion
Foreign exchange profit or loss - ¥1.5 billion

Extraordinary income (expenses)(impact of extraordinary losses in FY2013)

Gain on transfer of mining rights -¥2.8 billion
Impairment loss for the business assets for
production operation of Yufutsu oil & gas field+ ¥37.0 billion

Estimate for FY2014

Oil price and Exchange rate assumptions and impact on profits
Assumption

Impact on Profits

JCC price

Exchange rate

Bitumen price

USD 100 /bbl

JPY 90 /USD

CAD 45.87 /bbl
（ JPY 90 /CAD ）USD 1 /bbl increase in

JPY 5/USD weakening in

CAD 1/bbl increase in

JCC prices would pushprofits up by...

exchange rates would pushprofits up by…

bitumen prices would pushprofits up by…

Operating income

JPY 390 million

JPY 1,780 million( 2.33 million CAD )JPY 210 million

Net income

JPY 260 million

JPY 1,270 million(1.53 million CAD )JPY 140 million

FY2013

FY2014

1H (a)

2H (a)

Full (a)1H (e)

2H (e)

Full (e)changeJCC price

USD/bbl116.16113.12114.67100.00100.00100.00(14.67)

Exchange rate

JPY/USD

80.35

83.16

81.71

90.00

90.00

90.00

8.29

Bitumen price

CAD/bbl

52.02

49.19

50.71

47.25

44.58

45.87

(4.84)

Exchange rate

JPY/CAD

76.77

87.05

87.05

90.00

90.00

90.00

2.95

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.

30