■ INPEX CORPORATION (TSE1605)
Presentation on financial results for the year ended Mar. 31, 2019
Summary of Q&A session
Date
Number of attendees
Key questions：：：May 14, 201981

Q1： Status and forecast concerning Ichthys LNG project (Ichthys) production ramp‐up
A1： A total of 41 LNG cargoes have been shipped from the commencement of shipment
until the end of April 2019 and production ramp‐up has so far proceeded smoothly.
While major maintenance work in May 2019 will suspend a portion of onshore train
operations, this will not affect shipment. Production ramp‐up will be accelerated
again upon conclusion of this maintenance work, and 7‐8 LNG cargoes per monthon average will be shipped in FY2019/12.
Q2： Outlook on generating positive free cash flow (FCF) in FY2019/12
A2： Positive FCF is expected throughout the Medium‐term Business Plan period which
includes contribution from the Ichthys downstream JV. FCF on an annual basis isalso expected to turn positive starting in FY2019/12 for the first time since FY2012/3.
However, FCF on a consolidated basis (excluding the Ichthys downstream JV) may
not necessarily correspond to this. Cash flow for FY2019/12 will continue to be tighttaking into account debt repayments.
Q3： Factors supporting Ichthys’ smooth ramp‐up process
A3： Ichthys’ smooth ramp‐up process can be attributed mainly to effective
communication and teamwork on site. Minor issues have been neutralized swiftlyand flexibly while ensuring linkage across the numerous production facilities.
Q4： Impact of Mahakam and Ichthys on EBIDAX for FY2019/3
A4： Recovery of recoverable accounts under production sharing decreased mainly dueto the expiration of the PSC for the Offshore Mahakam Block while depreciation
and amortization increased mainly due to the Ichthys production start‐up.
Q5:

Natural gas demand outlook through 2040–2050 given plans to pursue Abadi LNG
Project(Abadi).
A5: Natural gas demand is expected to continue increasing into 2040–2050 mainly inAsia. Abadi is a large‐scale LNG project that is expected to be productive over morethan 20 years and meet the increasing demand for natural gas in Asia. Abadi is also
expected to contribute to the economic development of Indonesia and itssurrounding areas, which are key LNG markets. Abadi can therefore be considered
a competitive project.
Q6: Positioning of tight oil project acquired in U.S.
A6: The U.S. tight oil project has high potential given the growing demand of oil andnatural gas in the U.S. and possibilities for future export. This project will draw
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upon synergies with the hydraulic fracturing technology etc. acquired throughoperations in Japan. Going forward, the company will first determine whether theproject can be implemented smoothly given the challenges associated with doing
business in the U.S.
Q7:

Rationale behind leaving dividend outlook unchanged from FY2019/3 at 24 yen pershare
A7: The dividend outlook was set for 24 yen per share taking into account factors suchas the 9‐month business period, 90 billion yen net profit outlook for FY2019/12 andthe shareholder return policy announced in the medium‐term business plan. The
payout ratio for FY2019/12 is expected to be 38.9%, up from 36.5% in FY2019/03.
Q8: Outlook on operating cash flow and debt reduction for FY2019/12
A8: Operating cash flow is expected to increase due mainly to the contribution fromIchthys. INPEX’s share of the principal scheduled repayment of Ichthys project
financing loans amounts to approximately 100 billion yen per year.
Q9: Insights on the challenges concerning the economics of renewable energy initiatives
A9: Whereas upstream E&P activities are considered to involve high‐risk high‐returninvestments targeting double‐digit returns, renewable energy initiatives may beconsidered medium‐risk medium‐return investments targeting single‐digit returns.
Q10: Timing at which the additional (4%) participating interest acquisition in Ichthys
will be reflected in financial reporting
A10: This will be factored from FY2019/12.
End

Cautionary Statement
This document includes forward‐looking information that reflects the plans and expectations of the Company. Suchforward‐looking information is based on 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 be materially different from any future results, performance, achievements or financial 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 the disclosure of information in this document(including forward‐looking information) after the date of this document.
This document is an English language translation of the document originally created in Japanese. In case of
discrepancies, the Japanese version prevails.

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