INPEX CORPORATION

Financial Results
for the year ended March 31, 2017
May 15, 2017

Agenda Corporate Overview

 Outlook Financial Results
for the year ended March 31, 2017

 Consolidated Financial Forecasts
for the year ending March 31, 20181

Cautionary Statement
This presentation includes forward-looking information that reflects the plans
and expectations of the Company. Such forward-looking information is basedon the current assumptions and judgments of the Company in light of theinformation currently available to it, and involves known and unknown risks,
uncertainties, and other factors. Such risks, uncertainties and other factors may
cause the Company’s performance, achievements or financial position to bematerially different from any future results, performance, achievements orfinancial position expressed or implied by such forward-looking information.
Such risks, uncertainties and other factors include, without limitation:
 Price volatility and change in demand in crude oil and natural gas
 Foreign exchange rate volatility
 Change in costs and other expenses pertaining to exploration, development
and production
The Company undertakes no obligation to publicly update or revise thedisclosure of information in this presentation (including forward-looking
information) after the date of this presentation.
2

Corporate Overview

Toshiaki Kitamura
Representative Director, President & CEO

FY 2017/03 Financial Results Presentation
Highlights-■ Financial Resultsand Forecasts

Financial Results (FY2017/03)• Net sales ¥874.4 billion (13.4% decrease YoY)
• Net income ¥46.1 billion (175.2% increase YoY)
- Financial Forecasts (FY2018/03)• Net sales ¥844.0 billion (Forecast)• Net income ¥47.0 billion (Forecast)■ Net Production-

FY2017/03 Results: 521 thousand BOED (1.4% increase YoY)

■ Proved Reserves-

FY2017/03 Results: 3.30 billion BOE (1.2% increase YoY)-

■ Key Projects

4

Ichthys LNG Project:• CPF sailed away. Following the arrival of the CPF and the FPSO,
installation and commissioning work will be undertaken andproduction from the wellhead will commence.
• Thereafter, the Ichthys LNG Project will begin production ofcondensate, LNG and LPG in sequence during the current fiscal year.
- Kashagan Oil Field: Production restarted; first batch of crude oil
dispatched in October 2016.
- Natural Gas Business in Japan: Natural gas sales in FY2018/03
estimated to be 2,120 million m3

FY 2017/03 Corporate Highlights
Continuous Enhancement of E&P Activities










Conducted exploratory drilling offshore Shimane and Yamaguchi prefectures, Japan (June - October)
Reached final investment decision to develop Tangguh LNG Expansion Project, Indonesia (July)
Awarded exploration license for Block 3 in Mexican sector of northern Gulf of Mexico(December)Entering development and production phase at oil field in Irkutsk, Russia (December)
Signed heads of agreement with Rosneft Oil Company, Russia (in relation to cooperation on joint
exploration, development and production of hydrocarbons at license block offshore Russia)(December)
Agreed in principle on extension of joint development of Satah and Umm Al Dalkh oil fields offshore
Abu Dhabi, United Arab Emirates (January)
Succeeded in oil discovery at onshore exploration Block 10, Iraq (February)Strengthening Gas Supply Chain
 Commenced partial (July) and full operations (October) of Toyama Line, Japan Agreed to sales contracts with three additional city gas companies based on Heads of Agreementwith Chubu Electric on joint business operation to supply wholesale electricity (September)
Reinforcement of Renewable Energy Initiatives
 Commenced drilling survey in geothermal project in Fukushima Prefecture, Japan (June) Commenced commercial operations of first unit of Sarulla Geothermal Independent Power Producer(IPP) Project in Indonesia (March)

5

Note: Months in parentheses indicate timing of press release.

Ichthys LNG Project
Overview
 Current progress：
 Commissioning work in progress on the main facilities
 Production to start up sequentially during the current fiscal
year, product shipments following thereafter Production Plan：
 Production period: approx. 40 years⇒ The project will
maintain peak production for approx. 20 years
 Approx. 8.9 million t/y of LNG⇒ Production capacity
increased from 8.4 million t/y to 8.9 million t/y (approx. 6%
increase) Approx. 1.65 million t/y of LPG⇒ Production capacity
expected to increase by approx. 4% from 1.6 million t/y Approx. 100,000 bbl/d of condensate (at peak) Proved reserves
 Approx. 930 million BOE (based on INPEX’s participatinginterest of 62.245%)
 Participating interests held in multiple blocks in the vicinityof the Ichthys Field contributing to future gas production
potential
 Marketing Secured LNG SPAs covering 8.4 million t/y of LNG
 Reached an agreement in principle on the sale of the entire
volume of INPEX’s share of LPG etc.
6

Onshore facility1st Train (April 2017）

Ichthys LNG Project
Offshore facilities / Production wells ①
Key milestones (2016~)
Milestone

Achieved

Installation of subsea flow lines
completed

Installation of subsea production
facilities completed

CPF sail awayFPSO sail away
CPF / FPSO mooring
Production start-up※CPF: Central Processing Facility
FPSO: Floating Production Storage and Offloading

CPFの出航(2017年4月）
7

CPF sail away (April 2017)

Ichthys LNG Project
Offshore facilities / Productions wells ②

Subsea installation (January 2017)

 Installation of subsea production facilities
completed in January 2017 (Production
manifold, umbilical cable, etc.)

8

Naming ceremonies for CPF / FPSO
(February 2017)

 Naming ceremonies for CPF and FPSO
held in February 2017
 CPF sailed away from construction site inGeoje, South Korea in April 2017
 CPF scheduled to be towed to the Ichthys
Field over a period of approximately one
and a half months

Ichthys LNG Project
Onshore facilities ①
Key Milestones (2016~)
Milestone
Construction of product loading
jetty completed
Construction and delivery of all 230
modules completed
Pipelay of gas export pipeline
Construction of tanks (onshore part) completed / Ready to(April 2017) deliver gas
Hydrostatic testing on all producttanks completed
Start-up of power generators
LNG Plant ready for gas intake

Pipelay of gas export pipeline(November 2016)
9Commencement of feed gas intake
and start-up of production of all
products

AchievedIchthys LNG Project
Onshore facilities ②
Operations Complex& Utilities Annex

Ground Flares
Utilities
Inlet Facilities

Power Plant

Tank Flares

LPG Tanks

1st Train
2nd Train

LNG Tanks

To productloading Jetty

To Module Offloading Facility
Condensate
Tanks

Onshore Facilities (April 2017)

 Construction work peaked during 2015 ~2016
 Major construction work on main facilities completed
 Integration and commissioning work on completed facilities in progress
10

Ichthys LNG Project
Exploration Blocks in Vicinity of Ichthys Field Participating interests held in 14 exploration blocks in vicinity of Ichthys Field. Gas structures including
Crown, Lasseter, Mimia and Burnside discovered The discovered gas structures extend across at least 6 of the 14 exploration blocks in vicinity of Ichthys Field
11

Site for additional LNG trains in Darwin has already been secured

Abadi LNG Project
Omiya
Minamikoshigaya

Kashiwa

North
MatsudoFussa

Ikebukuro

Tachikawa

MitakaIchikawa
Ueno

NakanoTokyo
Shinjuku

Hachioji

ShibuyaWest

Tsudanuma

South

Noborito
Chiba

South
MachidaWest
Kawasaki

Yokohama

0

Location of Masela Block

Abadi Gas Field (image) INPEX aims for an early realization of the project and is currently engaged inconstructive discussions with the Indonesian government on the optimal developmentof the Abadi Gas Field, with an eye to begin pre-FEED work.

12

10km

Topics for FY 2017/03
Progress of the existing projects (Results in the second half of FY 2017/03)
ナダ

Russian Federation:
Zapadno-Yaraktinsky Block Entering development andproduction phase in December
2016

United Arab Emirates: Satah and Umm Al Dalkh Oil
Fields Offshore Abu Dhabi
 Agreed in principle on extension of joint
development in December 2016 (25-year extension
from 8 March 2018 to 31 December 2042)
 Participating Interest: Satah Oil Field 40%
Umm Al Dalkh Oil Field 12% (to discuss
terms including increasing INPEX’s
participating interest from 12% to 40%)
(Operator: ADNOC)
13

Republic of Kazakhstan:
Kashagan Oil Field Commenced
dispatch of crude oilfrom onshore plantin October 2016
 Participating
Interest : 7.56%(Operator:
NCOC (North CaspianOperating Company))

The United Mexican States:
Block 3, Perdido Fold Belt,
Mexican Gulf of Mexico
 Awarded exploration licensein December 2016
 Participating Interest:
33.3333%(Operator: Chevron)

Republic of Iraq: Onshore
Exploration Block 10
 Discovered oil deposits throughexploratory well drilling Participating Interest : 40%(Operator: Lukoil)● Production project● Exploration projectNatural Gas Business in Japanand Initiatives on Renewable Energy
Domestic natural gas business

Geothermal power generation business

Sarulla Geothermal IPP Project Toyama Line completed in June 2016. Commenced
supply of natural gas to Nissan Chemical Industries,
Nihonkai Gas and Asahi Soft Drinks.
 Established Domestic Energy Supply & Marketing
Division to further strengthen natural gas business
operations in Japan effective April 2017.
 Natural Gas Sales
 FY 2017/03: approx. 1,910 million m3
 FY 2018/03 (estimated): approx. 2,120 million m3
14

 Indonesia: Sarulla Geothermal
Independent Power Producer (IPP) Project Power plant with maximum capacityof 330MW, the world’s largest singlecontract geothermal power project
 Commenced commercial operationsof 1st unit in March 2017, targeting
phased ramp-up with 2nd and 3rd units

Net Production* (FY 2017/03)
600(Thousand BOED)

500

514
4%

521
5%

48%

52%

400
300

200

6%

100

36%

31%

0

5%

5%

Mar. 16Mar. 17Japan
Eurasia
Americas*156%Asia/Oceania
Middle East/Africa

The production volume of crude oil and natural gas under the production sharing contracts entered into by the INPEX Group corresponds to the net
economic take of the INPEX Group.

Production Cost,
Proved + Probable Reserves* and Reserve Indices
6,000

Production Cost per BOE (Excl. Royalty))
15.0
11.2

4,095
7.8

9.0

6.1

6.0
3.0
0.0
Mar. '16

1,389

1,610

24.7
years

Mar. '17

3,264
1,000

Reserve Replacement Ratio (3-year average)*****

2,188

2,532

3,304

2,434

17.4
years

0
Mar.' 13 Mar.' 14 Mar.' 15 Mar.' 16 Mar.' 17

400%

321%

300%

**
Proved Reserves
246%

100%

100%
0%
Mar. '15
16

1,907

1,705

2,000

Mar. '15

200%

4,044
1,945

3,000

4,693

4,477

4,000
Million BOE

US$/BOE

12.0

4,970

5,000

Reserves to
production ratio****Mar. '16

Mar. '17****
Probable Reserves

The reserves cover most INPEX Group projects including equity method affiliates. The reserves of the
projects for which a large amount of investment is expected and which should materially affect thecompany’s future results are evaluated by DeGolyer & MacNaughton, and the others are evaluated internally.
The reserves for Mar.’17 in this presentation are provisional results.
**
The proved reserves are evaluated in accordance with SEC regulations. When probabilistic methods are
employed, there should be at least a 90% probability that the quantities actually recovered will equal or
exceed the estimated proved reserves.
***
The probable reserves are evaluated in accordance with SPE/WPC/AAPG/SPEE guidelines (SPE-PRMS)
approved in March 2007. When probabilistic methods are employed, there should be at least a 50%
probability that the quantities actually recovered will equal or exceed the sum of estimated proved andprobable reserves. Probable reserves do not offer a guarantee of the production of total reserves during afuture production period with the same certainty as proved reserves.
**** Reserves to production ratio = Reserves as of March 31, 2017 / Production for the year ended March 31, 2017***** Reserve Replacement Ratio = Proved reserves increase including acquisition / production in the fiscal year

Outlook

Toshiaki Kitamura
Representative Director, President & CEO

Actual and Planned Investments
Actual and planned investments in Yen(Billions of Yen)
(Billions of Yen)

Actual and planned investments in US$(Millions of US$)(Millions of US$ )1,200

12,0001,100

1,029.7

962.9

1,000

11,000

971.2

900

8,000

653.1

605.2

600
854.7

500
400

929.0

615.0

880.0

*3

8,532

576.6
578.5

606.0

5,585

5,590

5,338

5,510

149
98

70
10

Mar.'17(Actual)

8,464
7,325

6,954

4,000
3,000

2,000
53.9

71.0

22.6

37.2

27.9

Mar.'13(Actual)Mar.'14(Actual)Mar.'15(Actual)Development*1
*1
18 *2

7,000

5,000

200

0

8,084

7,877

6,000

300

100

9,381

9,000

800
700

9,612

10,000

39.3
51.8

72.6

16.1
10.5

Mar.'16(Actual)

Exploration

Mar.'17(Actual)

8.0
1.0
Mar.'18
Mar.'19(Estimate)(Provisional*3)

1,000

650
273

709

662

371

255

327
432

Mar.'13(Actual)Mar.'14(Actual)Mar.'15(Actual)Mar.'16(Actual)0

Other capital expenditures*2

Includes investments in Ichthys downstream business
Mainly investments in Naoetsu LNG Terminal and domestic pipeline network

Provisional amounts including Development, Exploration and Other capital expenditures

Development

Exploration

Mar.'18
Mar.'19(Estimate)(Provisional*3)

Other capital expenditures

Net Production* Volume Projection
Following the Ichthys start-up
etc., the total production volume
from existing projects will reachapproximately 600 to 700
thousand BOED

1,000
900

Target for the 2020s
1 million BOED

800
600 - 700

Thousand BOED

700
600
500
400

577
521

507

5%

52%

300
200

6%

100

31%

0

5%

Mar. '17(Actual)Mar. '18 E
Japan

Mar. '19 E
Asia/Oceania

Mar. '20 E
EurasiaMar. '21 E

Middle East/Africa

Mar. '22 E

Early 2020s

AmericasNote: Assumed Brent oil price for net production projection : $50/bbl
*

19 **

The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX Group corresponds to the net economic take of the Group.
The production volume projection of crude oil and natural gas after Mar.’17 may change due to the price of oil and gas and situation of project.

Key initiatives from FY2013 based on
Medium- to Long-Term Vision and Future Outlook
Kazakhstan
Kazakhstan
・Commenced oil production from
Kashagan Oil Field

United Arab Emirates
・Acquired participating interest in ADCO
Onshore Concession
・Extended Concession Agreement forUpper Zakum Oil Field
・Agreed in principle on extension of joint
development of Satah and Umm Al Dalkh
oil fields
・Commenced oil production fromUmm Lulu and Nasr oil fields
began production

US Gulf of Mexico
・Acquired participatinginterest in Lucius project andcommenced oil production

Japan・Completed Naoetsu LNG Terminal
・Completed Toyama line

Angola・Acquired participating interest
in Angola Block 14
・Commenced oil production
from Lianzi Field

Indonesia

Medium- to Long-Term VisionCorporate
Strategy

Response to
Oil Price Downturn

Production Cost

9.0

（excl. royalty,
USD/boe)

Total
Investment

9.8
962.9

Corporate Strategy
post Ichthys Start-up

11.2
1,029.7971.2
7.8

Australia

6.1

653.1

605.2

615.0

18.0

（※beginning of term）(Billions of yen)

18.0

Dividend

17.5

18.0

18.0

18.0

(Yen per shareon annual basis)

20

・Commenced gas production from Ruby
Gas Field in Sebuku Block・Made Final Investment Decision to expand
Tangguh LNG Project・Joined the Sarulla IPP Project andcommenced commercial operations

・Acquired participating interest in Prelude
FLNG Project・Commenced oil production from Coniston
Oil Field

Participation / Extension of Project
Final Investment Decision

Mar2013

Mar2014 Mar2015 Mar2016 Mar2017 Mar2018（E） Mar2019～

Commencement of Production

Financial Results for the year ended March 31, 2017

Masahiro Murayama
Director, Senior Managing Executive Officer
Senior Vice President, Finance & Accounting

Highlights of the Consolidated Financial Results
for the year ended March 31, 2017
Apr. ‘15 - Mar. ‘16

Apr. ‘16 - Mar. ‘17

1,009.5

874.4(135.1)(13.4%)

Crude oil sales

679.2

617.1

(62.0)(9.1%)Natural gas sales (including LPG)

316.7

242.5

(74.1)(23.4%)

Others

13.5

14.6

1.0

8.1%

Operating income (Billions of yen)

390.1

336.4

(53.6)(13.8%)

Ordinary income (Billions of yen)

374.7

333.8

(40.8)(10.9%)Net income attributable toowners of parent (Billions of yen)

16.7

46.1

29.3

175.2%Net income per share (Yen)

11.49

31.61

20.12

175.2%Net sales(Billions of yen)

Change%Change

Average number of INPEX shares issued and outstanding during the year ended March 31, 2017: 1,460,357,146

Average crude oil price (Brent) ($/bbl)

48.73

49.88

1.15

2.4%

Average exchange rate (¥/$)

120.15108.38

11.77 yen

9.8% yenappreciation

appreciation

22

Crude Oil Sales
Apr. ‘15 - Mar. ’16

Apr. ‘16 - Mar. ’17

679.2

617.1

(62.0)(9.1%)

Sales volume (thousand bbl)

117,227

122,207

4,980

4.2%

Average unit price of overseas
production ($/bbl)

47.95

46.41

(1.54)(3.2%)

Average unit price of domestic
production (¥/kl)

38,25935,997(2,262)(5.9%)

Average exchange rate (¥/$)

120.74108.6712.07 yenappreciation

10.0% yenappreciation

Apr. ‘15 - Mar. ’16

Apr. ‘16 - Mar. ’17

Change%Change

741

900

159

(117.8 thousand kl)(143.0 thousand kl)(+25.3 thousand kl)

Asia & Oceania

13,505

12,246(1,259)(9.3%)

Eurasia (Europe & NIS)

11,666

11,336(331)(2.8%)

Middle East & Africa

89,486

95,495

6,009

6.7%

Americas

1,829

2,230

401

21.9%

117,227

122,207

4,980

4.2%

Net sales (Billions of yen)

Sales volume by region(thousand bbl)

Japan

Total
23

Change%Change21.4%

Natural Gas Sales (excluding LPG)
Apr. ‘15 - Mar. ‘16

Apr. ‘16 - Mar. ‘17

Net sales (Billions of yen)

306.2

235.7

(70.4)(23.0%)

Sales volume (million cf)

337,216

342,994

5,778

1.7%

Average unit price of overseas
production ($/thousand cf)

6.58

5.19

(1.39)(21.1%)

Average unit price of domestic
sales (¥/m3)

52.29

43.36

(8.93)(17.1%)

Average exchange rate (¥/$)

119.95108.38

11.57 yenappreciation

9.6% yenappreciation

Sales volume by region (million cf)

Apr. ‘15 - Mar. ‘16

Apr. ‘16 - Mar. ‘17

Change%ChangeJapan

65,304(1,750 million m3*)

71,295(1,910 million m3*)

5,991(+161 million m3*)

9.2%

Asia & Oceania

238,759

230,183(8,576)(3.6%)

Eurasia (Europe & NIS)

-

1,947

1,947

-

Middle East & Africa

-

-

-

-

Americas33,15339,569

6,416

19.4%

337,216

342,994

5,778

1.7%

Apr. ‘15 - Mar. ’16

Apr. ‘16 - Mar. ’17

Change

10.5

6.7

Total

Change%Change(FYI) LPG Sales

24

Net Sales (Billions of yen)

(3.7)

%Change(35.8%)*1m3=41.8605MJ

Statement of Income(Billions of Yen)

Net sales

Apr. ‘15 - Mar. ’16 Apr. ‘16 - Mar. ’17

Change%Change

Increase in sales volume :+34.8

Decrease in unit price :(85.9)

Exchange rate

1,009.5

874.4(135.1)(13.4%)

Cost of sales

526.7

453.8

(72.9)(13.8%)

Others :1.0

Gross profit

482.8

420.5

(62.2)(12.9%)

6.1

6.7

0.5

9.2%

Cost of sales for
Crude Oil :(Change)304.4(39.7)

Exploration expenses
Selling, general andadministrative expenses

86.5

77.3

(9.1)

(10.5%)

Operating income

390.1

336.4

(53.6)(13.8%)

Other income

69.9

39.0

(30.8)(44.1%)

Other expenses

85.3

41.6

(43.6)(51.2%)

Ordinary income

374.7

333.8

(40.8)(10.9%)

Extraordinary loss
(Impairment loss)

45.8

6.3

(39.5)(86.1%)

Total income taxes

354.3

271.3

(83.0)(23.4%)Net income (loss) attributable
to non-controlling interests(42.2)

9.9

52.2

-

Net income attributable toowners of parent

16.7

46.1

29.3

175.2%

25(Appreciation of yen) :(85.1)

Cost of sales for
Natural Gas* :(Change)* Including LPG

136.9(33.7)

Main factors for change :Gain on sales of marketablesecurities(25.9)

Dividend income(8.0)

Main factors for change :Equity in losses of affiliates(20.6)

Provision for allowance for recoverable
accounts under production sharing(10.6)
Loss on disposal of fixed Assets(8.5)

Other Income/Expenses(Billions of Yen)

Change%Change

Other income

69.9

39.0

(30.8)(44.1%)

Interest income

10.7

10.4

(0.2)

(2.7%)

Dividend income

10.8

2.8

(8.0)

(74.1%)

Gain on sales of marketable securities

25.9

-

(25.9)-

Gain on sales of investment securities

5.6

4.9

(0.6)

(11.8%)

-

2.1

2.1

-

Foreign exchange gain

2.9

-

(2.9)

-

Other

13.7

18.6

4.9

35.8%

Other expenses

85.3

41.6

(43.6)(51.2%)

Interest expense

4.1

5.2

1.0

24.5%

Equity in losses of affiliates

20.6

-

(20.6)-

Provision of allowance for doubtful accounts

0.1

8.3

8.1

-

Provision for allowance for recoverable accounts
under production sharing

25.0

14.3

(10.6)(42.6%)

Provision for exploration projects

0.3

-

(0.3)

-

-

3.7

3.7

-

Loss on disposal of fixed assets

13.2

4.7

(8.5)

(64.0%)

Other

21.6

5.1

(16.4)(76.0%)

Equity in earnings of affiliates

Foreign exchange loss

26

Apr. ‘15 - Mar. ‘16 Apr. ‘16 - Mar. ‘17

Analysis of Net Income Increase(億円)(Billions of Yen)
150

83.0

100

34.8

50

46.1
(52.2)

16.7

39.5

0

10.4

1.8

72.9

(85.9)

-50

9.1

-100

1.0

(85.1)-150

27

Net income
attributableto ownersof parent
Apr.15 –Mar. ‘16

Increasein SalesvolumeDecrease in
Unit priceExchange rate
(Appreciationof yen)Net Sales

OthersDecrease in
Cost ofsales

Decrease in Decrease
Explorationin
expenses andSG&A
Allowance for
exploration*

Net income Net income
Extraordinary Decrease in
Otherincome(loss)
attributable
loss
incometo owners
and expenses (Impairment tax payable attributable
to non-controlling of parent
loss)
interests
Apr.16 –Mar. ‘17*Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects

Balance Sheet(Billions of yen)
Current assets

Mar. ’16

Mar. ’17

Change%Change

984.3

942.9

(41.3)(4.2%)

1,752.6

1,928.5

175.9

10.0%

Intangible assets

541.4

521.2

(20.2)(3.7%)

Recoverable accounts under
production sharing

727.7

611.9

(115.8)(15.9%)

Other

495.4

424.2

(71.1)(14.4%)

Less allowance for recoverable
accounts under production sharing(131.7)(116.8)14.9(11.3%)

Total assets

4,369.8

4,312.1(57.6)(1.3%)

Current liabilities

319.1

297.4

(21.6)(6.8%)

Long-term liabilities

871.9

807.1

(64.7)(7.4%)

3,178.8

3,207.5

28.7

0.9%

(Non-controlling interests)

245.9

264.3

18.4

7.5%

Total liabilities and net assets

4,369.8

4,312.1(57.6)(1.3%)Net assets per share (Yen)

2,008.34

2,015.38

7.04

0.4%

Tangible fixed assets

Total net assets

28

Available fund (Billions of yen)* :663.0
Breakdown• Cash and deposits : 652.6• Available investment securities :10.4*Amounts to be allocated to theinvestments based on the investment
plan

Summary of financial information
for Ichthys downstream JV (100%basis, including the Company’s
equity share 62.245%)(Billions of yen)
• Current assets : 20.5
• Fixed assets : 3,094.7• Total assets:
3,115.2

Total shareholders’ equity ： +19.8
Accumulated other comprehensive
income (Billions of yen) : (9.6)• Unrealized holding gain on
securities : +1.5
• Unrealized loss fromhedging instruments : +7.3
• Translation adjustments : (18.5)

Statement of Cash Flows(Billions of Yen)

Apr. ‘15 - Mar. ‘16

Apr. ‘16 - Mar. ‘17

Change%Change

Income before income taxes

328.8

327.5

(1.3)

(0.4%)

Depreciation and amortization

86.7

91.1

4.3

5.0%

Recovery of recoverable accounts under production sharing (capital expenditures)

64.1

79.8

15.6

24.4%

Recoverable accounts under production sharing (operating expenditures)(45.8)

(2.8)

43.0

-

Income taxes paid

(393.5)(292.8)100.7(25.6%)

Other

143.2

72.9

(70.3)(49.1%)Net cash provided by (used in) operating activities

183.7

275.8

92.1

50.1%

Payments for time deposits / Proceeds from time deposits

245.9

566.5

320.6

130.4%

Payments for long-term time deposits / Proceeds from long-term time deposits(439.9)

-

439.9

-

Payments for purchases of tangible fixed assets(476.7)(278.3)198.4(41.6%)

Payments for purchases of marketable securities/investment securities and proceedsfrom sales of marketable securities/investment securities

196.4(69.6)(266.0)-Investment in recoverable accounts under production sharing (capital expenditures)(60.4)(37.3)

23.1(38.2%)

Long-term loans made / Collection of long-term loans receivable

169.0(133.2)(302.2)-

Payments for purchases of mining rights(134.5)

-

134.5

-

Other

(43.1)

5.4

48.6

-

Net cash provided by (used in) investing activities(543.5)

53.4

597.0

-

Net cash provided by (used in) financing activities

156.7(65.4)(222.1)-

Cash and cash equivalents at end of the period

53.8

316.7

262.9

-

29

Financial Indices
Equity Ratio**

Net Debt/Total Capital Employed (Net)*
Mar.'16

Mar.'17
0.9%(8.1%)*

D/E Ratio***

30

**
***

25.3%

23.4%

Mar.'16

Mar.'17

67.1%

68.3%

Mar.'16

Mar.'17

Net Debt/Total Capital Employed (Net) = (Interest-bearing debt - Cashand deposits - Public and corporate bonds and other debt securities(with determinable value) – Long term time deposits)/(Net assets +Interest-bearing debt - Cash and deposits - Public and corporate bonds
and other debt securities (with determinable value) – Long term time
deposits)
Equity Ratio = (Net assets - Non-controlling interests)/Total assets
D/E Ratio = Interest-bearing debt/ (Net asset - Non-controllinginterests)

Consolidated Financial Forecasts
for the year ending March 31, 2018

Masahiro Murayama
Director, Senior Managing Executive Officer
Senior Vice President, Finance & AccountingConsolidated Financial Forecasts
for the year ending March 31, 2018
1st Half

2nd Half

Full year

Brent oil price ($/bbl)

50.0

50.0

50.0

Average exchange rate (¥/$)

110.0

110.0

110.0

Mar. ‘17(Actual)Mar. ‘18(Forecasts)

Full Year

Change% Change

Net Sales (Billions of yen)

874.4

844.0

(30.4)(3.5%)

Operating Income (Billions of yen)

336.4

303.0

(33.4)(9.9%)

Ordinary Income (Billions of yen)

333.8

329.0

(4.8)

(1.5%)Net income attributable to owners ofparent (billions of yen)

46.1

47.0

0.8

1.8%

Net Sales (Billions of yen)

389.6

431.0

41.3

10.6%

Operating Income (Billions of yen)

138.0

155.0

16.9

12.3%

Ordinary Income (Billions of yen)

132.1

167.0

34.8

26.3%

Net income attributable to owners ofparent (billions of yen)

15.7

24.0

8.2

52.6%

2Q End9.0

9.0

FY End

9.0

9.0

TOTAL

18.0

18.0

1st Half

Cash dividends per
share (yen)32Sales and Investment Planfor the year ending March 31, 2018
Mar. ’17(Actual)Change% Change

Sales Volume

Crude oil (thousand bbl)1

122,207

119,393(2,814)(2.3%)Natural gas (million cf)2

342,994

266,609(76,385)(22.3%)

Overseas271,699

187,643(84,057)(30.9%)

Japan

71,295(1,910 million m3)

78,967(2,116 million m3)

7,671(206 million m3)

10.8%

1,860

257

(1,602)(86.2%)LPG (thousand bbl)3(Billions of yen)Mar. ‘17(Actual)Mar. ‘18(Forecasts)

Change% Change

Development expenditure4

578.5

606.0

27.5

4.8%

Other capital expenditure

10.5

1.0

(9.5)

(90.5%)

Exploration expenditure

16.1

8.0

(8.1)

(50.3%)

8.7

(0.8)

(8.4%)

2.9

1.0

52.6%

Exploration expenses andProvision for explorations5(Non-controlling Interests Portion)633

Mar. ‘18(Forecasts )Exploration expenses 6.7
Provision for explorations
2.7

9.5
1.9

Exploration expenses 4.5
Provision for explorations
4.2

Note
1 CF for domestic crude oil sales and petroleum products : 1kl=6.29bbl
2 CF for domestic natural gas sales : 1m3=37.32cf
3 CF for domestic LPG sales : 1t=10.5bbl
4 Development expenditure includes investment in Ichthys downstream
5 “Provision for allowance for recoverable accounts under production sharing” + ”Provision for exploration projects”, related to exploration activities
6 Capital increase from Non-controlling interests, etc.

Net Income Sensitivities
 Sensitivities of crude oil price and foreign exchange fluctuation on
consolidated net income attributable to owners of parent for the year
ending March 31, 2018 (Note 1)(Billions of yen)

 Brent Crude Oil Price; $1/bbl increase(decrease) (Note 2)+2.4 (-2.4)

 Exchange Rate; ¥1 depreciation(appreciation) against the U.S. dollar (Note 3)+1.0 (-1.0)(Note1) The sensitivities represent the impact on net income for the year ending March 31, 2018 against a $1 /bbl increase (decrease) of Brent crude oil
price on annual average and a ¥ 1 depreciation (appreciation) against the U.S. dollar. These are based on the financial situation at the beginningof the fiscal year. These are for reference purposes only and the actual impact may be subject to change in production volumes, capital
expenditures and cost recoveries, and may not be constant, depending on crude oil prices and exchange rates.
(Note2) This is a sensitivity on net income by fluctuation of crude oil price and is subject to the average price of crude oil (Brent) in the fiscal year.
(Note3) This is a sensitivity on net income by fluctuation of the yen against the U.S. dollar and is subject to the average exchange rate in the fiscal year.
On the other hand, a sensitivity related to valuation for assets and liabilities denominated in the U.S. dollar on net income incurred by foreignexchange differences between the exchange rate at the end of the fiscal year and the end of the previous fiscal year is almost neutralized.

34