Note: This material is an English translation of the Japanese-language original.

Explanatory Materialof Financial Results

for the Nine Months Ended December 31, 2020

February 8, 2021

Japan Petroleum Exploration Co., Ltd.
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Contents

Ⅰ. Financial Highlights
Ⅱ. Financial Results
for the Nine Months Ended December 31, 2020
Ⅲ. Revised Financial Forecasts
for the Fiscal Year Ending March 31, 2021

Note) This material also serves as the presentation material for the financial results briefing to be held for securities analysts on
February 9, 2021.

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

2

Ⅰ. Financial Highlights

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

3

Financial Highlights■ FY3/21 1-3Q Results （Year-on-Year）(Billion Yen)

FY3/20 1-3Q (a)FY3/21 1-3Q (a)ChangeOperating profit (loss)

11.5

-4.4

-15.9

-

Ordinary profit (loss)

19.8

-2.9

-22.7

-

Main factors for change

E&P business： Profit declined due to a significant drop in crude oil prices and a decline in sales volume by COVID-19
pandemic.
I/U Business： Profit increased due to a start of electricity sales with the operation commencement of the Fukushima Natural
Gas Power Plant*.
Non-operating income： Profit decreased due mainly to the turnaround from foreign exchange gains to foreign exchange
losses, and deterioration in equity in earnings of associated companies.

■ FY3/21 Full Year Forecast Revision （vs. Nov.10 Forecasts）(Billion Yen)

Nov. 10, 2020 (f)Feb. 8, 2021 (f)ChangeOperating profit (loss)

-5.3

5.1

+10.5

-

Ordinary profit (loss)

-2.4

9.1

＋11.6

-

Main factors for change

E&P business：Improvement in profit by increase in sales price of diluted bitumen and domestic oil and gas, based on the
upward revision on the crude oil price assumption
I/U Business：Increase in sales price of electricity due mainly to the hike in the Japan Electric Power Exchange (JEPX) spot
market priceNon-operating income ：Decrease in foreign exchange loss etc.

Note) *Operated by Fukushima Gas Power Co., Ltd., which is invested by 5 companies as partners, including JAPEX
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

4

Ⅱ. Financial Results
for the Nine Months Ended December 31, 2020

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

5

E&P Business Sales for 1-3Q FY3/21 (Year-on-Year)
FY3/20 1-3Q(a)Net sales：Million Yen

FY3/21 1-3Q(a)SalesvolumeNet sales

Sales
volume-145,277

2,323

ChangeNet sales

Sales volume-

54,123-108,049

1,447

38,122-875

225

10,992

211

5,990

944

43,189204

5,225

Purchased crude oil

1,153

53,866

1,032

Diluted bitumen*2

1,290

35,674319

1,554

E&P Business-Net sales-①-91,154

-63%

-38%

-69,926

-65%

-14

-6%

-5,002

-46%

②

-740

-78%

-37,964-88%

26,907

③

-120

-10%

-26,959-50%

937

14,071

④

-352

-27%

-21,602

-61%

340

1,929

+21

+7%

+374

+24%

Breakdown
Crude oil
Crude oil
- Japan
Crude oil- overseas*1

Natural Gas- Overseas＊3

Thousand KL

Million M3

Main factors for change① Decrease in sales volume and price of crude oil (overseas), purchased crude oil and diluted bitumen② Decrease in sales volume and price of crude oil from Garraf Oil Field in Iraq
③ Decrease in sales volume and price of purchased crude oil from SODECO④ Decrease in sales price and volume due to the reduction in production of diluted bitumen at the Hangingstone
Lease in Canada*1 Including 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 Including the volume of 2 overseas subsidiaries (JAPEX Montney Ltd. and Japex (U.S.) Corp.)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

6

I/U Business Sales for 1-3Q FY3/21 (Year-on-Year)
FY3/20 1-3Q(a)Net sales：Million Yen
Infrastructure /Utility Business

Sales
volume-FY3/21 1-3Q(a)Net sales

Sales
volumeChangeNet sales

Sales volume--61,263-67,691857

44,316813

36,658355-

Net sales-① +6,428+11%-7,658-17%

Breakdown
Natural Gas- JapanMillion M3- Produced in Japan
LNG

419
Thousand Ton

Electricity

Million kWh

Others*1

-

-

②

-43

-5%

-63

-15%
+4%

205

14,402

213

11,059

+7

2

95

2,080

16,654④ +2,078 +87,046%

-

3,319

-

2,449

-

-

-

③

-

-3,342+16,559 +17,373%+870

Main factors for change① Increase in electricity sales volume and revenue of commissioned regasification of LNG② Decrease in sales price, decrease in sales volume mainly due to the economic stagnation by COVID-19③ Decrease in sales price④ Increase in electricity sales volume due to the commercial operation commencement of the Fukushima
Natural Gas Power Plant*1 Including the revenue from contracted transportation of natural gas and commissioned regasification of LNG
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

7

-23%

+36%

1-3Q FY3/21 Results (Year-on-Year)
FY3/20
1-3Q (a)Million Yen

FY3/21
1-3Q (a)ChangeNet sales

247,819150,099-97,719-39%

Gross profit

35,157

18,741-16,416-47%

Operating profit (loss)

11,533-4,448-15,981- %Ordinary profit (loss)

19,849-2,948-22,798- %Profit (loss) attributable to owners ofparent16,556-3,776-20,332- %Oil Price, Exchange Rate and Sales Price
FY3/20
1-3Q (a)WTI
Crude oil price (CIF)

USD/bbl

FY3/21
1-3Q (a)Change

57.15

40.08

-17.07

67.62

40.35

-27.27

Exchange rate

JPY/USD

109.10106.69-2.41

JACOS Diluted bitumen＊1

USD/bbl

40.72

22.50

-18.23

JML Natural gas*2

CAD/mcf

1.68

2.03

+0.35

*1 Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*2 Natural gas sales price of JAPEX Montney Ltd. (Excl. Royalty)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

8

Analysis of 1-3Q FY3/21 Net Income Result (Year-on-Year)
Billion Yen

JACOS
JML

-12.4 bn.
+0.6 bn.
JML
JAPEX-3.2 bn.
-0.5 bn.

SODECO
EMPI

Net
incomeOperating profit (loss) *-15.9 bn.

1-3Q
FY3/20(a)

E&P
overseas

E&P
Japan

I/U

1-3Q
FY3/20(a)

3.2

16.8

1-3Q
FY3/21(a)

-8.9

6.9

-3.4 bn.
+1.9 bn.

Non-operating income(loss) -6.8 bn.

NetincomeOthersExtraordinary
incomeIncometaxes

Profitattributable
to noncontrollinginterest

6.7

0.6

-0.1

3.1

0.0

5.3

-0.1

-0.0

1.8

-1.0

OthersForeignexchange
gains andloss

Equity on
earnings

-3.7

-4.7

0.8

2.0

-4.6

-3.6

* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

9

1-3Q
FY3/21(a)Ⅲ. Revised Financial Forecasts
for the Fiscal Year Ending March 31, 2021

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

10

E&P Business Sales Forecasts for FY3/21 (vs Nov. 10 Forecasts)
Previous(f)Nov. 10, 2020

Net sales：Million Yen

Revised(f)Feb. 8, 2021

ChangeSales
volumeNet sales

Sales
volume-76,872-

88,082-

2,117

53,8402,331

63,547

+214

301

8,176

292

8,528

548

13,280545

14,719Purchased crude oil

1,266

32,384

1,493

40,299Diluted bitumen*2

1,303

20,142

1,330

21,650

489

2,889

476

2,885

E&P Business-

Sales volume

Net sales

Net sales① +11,210

+15%

+10%

+9,706

+18%

-8

-3%

+351

+4%

-2

-0%

+1,439

+11%

③

+226

+18%

＋7,915

+24%

④

+26

+2%

+1,508

+8%

-12

-3%

-4

-0%

-

Breakdown
Crude oil
Crude oil
- Japan
Crude oil- overseas*1

Natural Gas- Overseas＊3

Thousand KL

Million M3②

Main factors for change① Increase in sales volume and price of purchased crude oil, increase in sales price of crude oil (overseas)② Increase in sales price of crude oil from Garraf Oil Field in Iraq
③ Increase in sales volume and price of purchased crude oil from SODECO④ Increase in sales price and volume of diluted bitumen from the Hangingstone Lease in Canada*1 Including 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 Including the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

11

I/U Business Sales Forecasts for FY3/21 (vs Nov. 10 Forecasts)
Previous(f)Nov. 10, 2020

Net sales：Million Yen

Infrastructure /Utility Business

Sales
volume-Net sales

Revised(f)Feb. 8, 2021
Sales
volumeNet sales-

93,454-

100,265

1,115

49,262

1,150

50,216

ChangeSales volume-

Net sales-①+6,810

+7%

+954

+2%

Breakdown
Natural Gas- JapanMillion M3- Produced in Japan

+35

+3%

+19

+4%

489

-

508

-

Thousand Ton

284

16,055284

15,902+0+0%Electricity

Million kWh

2,955

23,474

2,995

29,580+39+1%

Others*1

-

-

4,662

-

4,565

LNG

-

-

Main factors for change① Increase in electricity sales price② Increase in sales price due to the hike in the JEPX spot market price after the end of 2020

*1 Including the revenue from contracted transportation of natural gas and commissioned regasification of LNG
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

12

-

②

-

-152

-1%

+6,106

+26%

-96

-2%

FY3/21 Forecasts (vs Nov. 10 Forecasts)
Previous(f)Nov.10,2020Million Yen

Revised(f)Feb.8,2021

ChangeNet sales

208,075

227,826+19,750+10%Gross profit

26,80536,871+10,066+38%

Operating profit (loss)-5,378

5,157+10,536-%

Ordinary profit (loss)-2,462

9,191＋11,654-%

Profit (loss) attributable to owners ofparent-1,9007,472+9,372-%

Oil Price, Exchange Rate and Sales PricePrevious(f)Nov.10,2020

WTI
Crude oil price (CIF)

USD/bblRevised(f)Feb.8,2021

Change

39.08

40.84

+1.76

39.14

41.64

+2.50

Exchange rate

JPY/USD

106.65106.18-0.47

JACOS Diluted bitumen＊1

USD/bbl

23.18

25.00

+1.83

JML Natural gas*2

CAD/mcf

2.09

2.12

+0.03

*1 Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*2 Natural gas sales price of JAPEX Montney Ltd. (Excl. Royalty)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

13

Analysis of FY3/21 Net Income Forecasts (vs Nov. 10 Forecasts)
Billion Yen

JACOS+1.3 bn.

JML
Japex Garraf

Net
incomeOperating profit (loss) ＊+10.5 bn.

+2.0 bn.
-0.7 bn.

Non-operating income (loss)+1.1 bn.

Net
incomeFY3/21(f)
Nov. 10E&P
overseas

E&P
Japan

I/U

OthersForeignexchange
gains andloss

Equity on
earnings

OthersExtraordinary
incomeIncometaxes

Profitattributable
to noncontrollinginterest

FY3/21(f)Nov. 10

-11.7

7.6

5.2

-6.4

-2.5

5.1

0.3

-0.0

0.2

-0.8

FY3/21(f)Feb. 8

-10.0

8.5

12.4

-5.8

-1.5

5.2

0.3

-0.0

3.0

-1.3

* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

14

FY3/21(f)Feb. 8

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

FY3/21 Revised(f)Feb. 8, 2021

ChangeSales
volumeNet sales

Sales
volume-175,443-

88,082-

2,924

128,152

2,331

63,547-592-20%-64,605-50%

304

14,800

292

8,528

-11

-4%

-6,272

-42%

1,123

45,372545

14,719-577-51%-30,653-68%

Purchased crude oil

1,496

67,9791,493

40,299-3-0%-27,679-41%

Diluted bitumen*2

1,639

45,025

1,330

21,650-309-19%-23,375

-52%

431

2,265

476

2,885

+45

+10%

+620

+27%

E&P Business-

Sales volume

Net sales

Net sales-①-87,360-50%

Breakdown
Crude oil
Crude oil
- Japan
Crude oil- overseas*1

Natural Gas- Overseas＊3

Thousand KL

Million M3②④③

Main factors for change① Decrease in sales volume and price of crude oil (overseas) and diluted bitumen, decrease in sales price ofpurchased crude oil② Decrease in sales volume and price of crude oil from Garraf Oil Field in Iraq
③ Decrease in sales price of purchased crude oil from SODECO④ Decrease in sales price and volume due to the reduction in production of diluted bitumen at the Hangingstone
Lease 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 © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

15

I/U Business Sales Forecasts for FY3/21 (Year-on-Year)
FY3/21 Revised(f)Feb. 8, 2021

FY3/20(a)Net sales：Million Yen

Infrastructure /Utility Business

Sales
volume-Net sales

Sales
volumeNet sales-

88,688-100,265

1,268

64,965

1,150

50,216

ChangeSales volume-

Net sales-① +11,576+13%-14,749-23%

Breakdown
Natural Gas- JapanMillion M3- Produced in Japan

582

-

508

-

②

-118

-9%

-73

-13%
+4%

Thousand Ton

273

19,395284

15,902+11

Electricity

Million kWh

110

974

2,995

29,580④ +2,885 +2,619%

Others*1

-

-

3,353

-

4,565

LNG

-

-

-

③

-3,492+1,211① Increase in electricity sales volume② Decrease in sales price, decrease in sales volume mainly due to the economic stagnation by COVID-19③ Decrease in sales price④ Increase in electricity sales volume due to the commercial operation commencement of the Fukushima
Natural Gas Power Plant

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

16

-18%

+28,606 +2,937%

Main factors for change*1 Including the revenue from contracted transportation of natural gas and commissioned regasification of LNG

-

+36%

FY3/21 Forecasts (Year-on-Year)
Million Yen

FY3/21 Revised(f)Feb. 8, 2021

FY3/20(a)ChangeNet sales

318,822

227,826-90,996-29%

Gross profit

47,04236,871-10,170-22%

Operating profit

14,283

5,157-9,125-64%

Ordinary profit

32,635

9,191-23,443-72%

Profit attributable to owners ofparent26,815

7,472-19,342-72%

Oil Price, Exchange Rate and Sales Price
FY3/21 Revised(f)Feb. 8, 2021

FY3/20(a)WTI
Crude oil price (CIF)

USD/bblChange

57.14

40.84

-16.30

68.11

41.64

-26.47

Exchange rate

JPY/USD

109.15106.18-2.97

JACOS Diluted bitumen＊1

USD/bbl

39.85

25.00

-14.84

JML Natural gas*2

CAD/mcf

1.77

2.12

+0.35

*1 Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*2 Natural gas sales price of JAPEX Montney Ltd. (Excl. Royalty)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

17

Analysis of FY3/21 Net Income Forecasts (Year-on-Year)
Billion Yen

JACOS-12.9 bn.
SODECO
EMPI-6.6 bn.
+1.1 bn.

Dividend income -2.8 bn.
Interest income -0.6 bn.

JML-1.8 bn.
Japex Garraf -1.4 bn.
Net
incomeOperating profit (loss)＊-9.1 bn.

Non-operating income(loss) -14.3 bn.

NetincomeFY3/20(a)

E&P
overseas

E&P
Japan

I/U

OthersForeignexchange
gains andloss

Equity on
earnings

OthersExtraordinary
incomeIncometaxes

Profitattributabl
e to noncontrollinginterest

FY3/21(a)

2.6

22.6

-5.2

-5.7

2.4

11.9

3.9

-0.7

4.7

0.2

FY3/21(f)Feb. 8

-10.0

8.5

12.4

-5.8

-1.5

5.2

0.3

-0.0

3.0

-1.3

* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

18

FY3/21(f)Feb. 8Cash Flows and Debt
Million Yen

FY3/20(a)

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

Full year 1Q-4Q

Cash flows from operating activities

Nov. 10

Feb. 869,89525,45035,506

Depreciation

25,19022,20122,017

Recoverable cost (Recovery)

41,040

10,667

12,004

Cash flows from investing activities-18,701-29,855-25,911Purchase of property, plant andequipment-7,566-15,997-15,729

Recoverable cost (Payments)-30,226-16,175-15,195

Cash flows from financing activities-13,743-13,049-12,896

Interest-bearing debt*1

140,848

125,111125,111

EBITDA*2

58,29525,00236,541

2.4

5.0

3.4

Debt-to-EBITDA ratio*1 Interest-bearing debt includes lease obligations, retirement benefit liabilities and contingent liabilities*2 EBITDA is the total of operating profit, depreciation, interest and dividends received on investment cash flow
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

19

Special instruction on the revised forecast dated Feb.8

The Company is currently reexamining its medium- to long-term projections forthe business environment and oil prices, and reevaluating the Group's main assets.
Depending on revision of the plans in each projects, changes in oil priceassumptions, or other factors, there are possibilities to recognize impairment
losses on some of our assets in Japan and overseas. Should any impact berecognized on its business performance, the Company will disclose it as soon as it
is determined.

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

20

Appendix

1. Net Sales

2. Financial Results
3. Segment Profit

4. Price Assumptions for FY3/21 Forecasts

5. Sensitivities Analysis on FY3/21 Forecasts Basis
6. Main Business and Major Assets
7. Glossary

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

21

1. Net Sales - E&P BusinessMillion Yen

FY3/20(a)
3Q

Sales

1Q-3Q

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

1Q

2Q

FY3/21(f)
3Q

1Q-3Q

4Q

Full year
Nov. 10

Feb. 851,859145,277

175,443

22,904

14,642

16,57654,123

33,95976,872

88,082

853

2,323

2,924

687

438

321

1,447

884

2,117

2,331

39,146108,049

128,152

15,936

12,515

9,670

38,122

25,42453,84063,547

77

225

304

60

78

72

211

81

301

292

3,621

10,99214,800

1,800

1,926

2,263

5,990

2,537

8,176

8,528

314

944

1,123

168

18

17

204

341

548

545

14,47043,18945,372

4,393

307

524

5,225

9,493

13,28014,719

460

1,153

1,496

458

341

231

1,032

461

1,266

1,493

21,05453,866

67,979

9,742

10,281

6,882

26,907

13,39232,38440,299

452

1,290

1,639

410

203

324

937

392

1,303

1,330

12,28835,67445,025

6,258

1,499

6,313

14,071

7,578

20,142

21,650

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

106

319

431

111

118

111

340

135

489

476

Net sales

424

1,554

2,265

709

627

592

1,929

956

2,889

2,885

56.50

57.15

57.14

46.17

27.94

41.02

40.08

42.66

39.08

40.84

64.72

67.62

68.11

44.41

33.34

44.51

40.35

45.00

39.14

41.64

Exchange rate (JPY/USD) *4

107.71109.10109.15108.04106.88105.46106.69105.00106.65106.18

Diluted bitumen*2 (USD/bbl)

39.83

40.72

39.85

22.30

11.29

29.77

22.50

31.04

23.18

25.00

JML natural gas*5 (CAD/mcf)

1.41

1.68

1.77

2.36

1.85

1.89

2.03

2.35

2.09

2.12

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(Thousand KL)
Net sales*2

WTI（USD/bbl）
Crude oil price (CIF)(USD/bbl) *4*1 Including 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 Including the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)*4 Domestic sales price average of crude oil referring to crude oil (CIF) price and its conversion exchange rate
*5 Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

22

1. Net Sales – I/U BusinessMillion Yen

FY3/20(a)
3Q

Sales

1Q-3Q

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

1Q

2Q

FY3/21(f)
3Q

1Q-3Q

4Q

Full year
Nov. 10

Feb. 8

20,95961,26388,68820,99722,98523,70967,691

32,57393,454

100,265

323

857

1,268

248

271

292

813

336

1,115

1,150

16,08344,31664,965

12,79812,26011,59936,65813,55849,26250,216

149

419

582

109

106

139

355

152

489

508

56

205

273

53

41

118

213

71

284

284

4,082

14,402

19,395

3,597

2,878

4,583

11,0594,843

16,055

15,902

Sales volume of Electricity(Million kWh)

0

2

110

448

826

806

2,080

914

2,955

2,995

Net sales

23

95

974

3,493

6,548

6,612

16,654

12,92623,47429,580

Others*1

769

2,449

3,353

1,108

1,297

914

3,319

1,245

4,662

4,565

Sales volume of Natural gas– Japan (Million M3)
Net sales
Sales volume of Naturalgas Produced in Japan(Million M3)

Sales volume of LNG(Thousand ton)
Net sales*1 Including the revenue from contracted transportation of natural gas and commissioned regasification of LNG

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

23

2. Financial Results
Million Yen

FY3/20(a)3Q

Net sales

1Q-3Q

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

1Q

2Q

FY3/21(f)
3Q

1Q-3Q

4Q

Full year
Nov. 10

Feb. 885,472

247,819

318,82251,01847,10851,972150,099

77,726208,075

227,826

E&P Business

51,859145,277

175,443

22,904

14,642

16,57654,123

33,95976,872

88,082

Infrastructure/Utility Business

20,95961,26388,68820,99722,98523,70967,691

32,57393,454

100,265

Others12,653

41,27854,690

7,116

9,480

11,68728,284

11,19337,74839,478

Cost of sales

73,417

212,661

271,780

48,61940,623

42,116

131,358

59,595

181,270

190,954

Gross profit

12,05535,15747,042

2,399

6,485

9,856

18,741

18,13026,80536,871

358

716

893

206

180

319

706

278

1,004

985

SG&A expenses

7,893

22,90731,864

7,443

7,325

7,713

22,483

8,245

31,17830,728Operating profit

3,803

11,533

14,283-5,250-1,021

1,823-4,4489,606-5,3785,157

Non-operation income

2,410

8,316

18,351-4,325

3,759

2,065

1,499

2,534

2,915

4,033

261

846

1,096

216

117

36

371

42

410

413

Interest expenses-1,052-3,486-4,641

-972

-809

-379

-2,162-400-2,574-2,562

Dividend income

1,337

2,996

5,618

49

1,283

107

1,439

1,286

2,726

2,725

Share of profit of entities accounted forusing equity method

2,391

6,796

11,960

2,116

1,250

1,945

5,312

-15

5,112

5,297

Provision for overseas investment

85

256

342

85

85

85

256

85

342

342

Foreign exchange gains and loss

-654

829

2,425

-5,8091,837

319-3,652

2,083-2,553-1,569

41

76

1,550

-10

-6

-49

-66

-546

-547

-613

6,213

19,84932,635-9,575

2,737

3,889

-2,94812,140-2,462

9,191

Extraordinary income

-144

-163

-731

-3

-11

-6

-21

-15

-39

-37

Profit before income taxes

6,068

19,68631,903-9,578

2,725

3,882

-2,97012,124-2,501

9,154

Income taxes

1,593

3,105

4,788

173

463

1,223

1,860

1,220

243

3,080

-10

24

299

-215

-298

-539

-1,054-344-844-1,3984,486

16,556

26,815-9,536

2,561

3,198

-3,776

11,248-1,9007,472

Exploration expenses

Interest income

Other
Ordinary profit

Profit attributable to non-controlling interests

Profit attributable to owners of parent

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

24

3. Segment Profit
Million Yen

FY3/20(a)
3Q

Operating profit
Japan

North
America

Middle East

Others*1

Full year
1Q-4Q

1Q

2Q

3Q

1Q-3Q

4Q

Full year
Nov. 10

Feb. 8

13,793

18,834

790

4,558

4,426

9,775

12,495

13,87822,270Share of profit (loss) ofentities accounted for using
equity method

19

101

152

157

27

351

536

-920

145

-384

Operating profit (loss)

1,004

3,792

3,422

-4,223-3,268-554-8,046-546-10,374-8,593

-

-

-

-

-

-

-

-

-

-

-25

-110

-164

-42

-18

-35

-97

-35

-149

-133

-

-

-

-

-

-

-

-

-

-

Operating profit (loss)

358

425

612

301

-83

23

241

-25

101

215

Share of loss of entities
accounted for using equity
method

-4

-5

-8

-2

0

-2

-5

-4

-4

-9

Operating loss

-

-1

-1

-

-

-

-

-

-

-

2,375

6,700

11,816

1,961

1,223

1,596

4,781

909

4,971

5,691

-2,138-6,365-8,419-2,075-2,207-2,037-6,320-2,281-8,833-8,601

3,803

11,533

14,283-5,250-1,021

1,823-4,4489,606-5,378

5,157

Share of profit of entities
accounted for using equity
methodShare of profit of entities
accounted for using equity
methodShare of profit of entities
accounted for using equity
methodAdjustments
andeliminations
Amounts on
consolidated
statement ofincome

1Q-3Q

FY3/21(f)

4,604

Operating loss
EuropeFY3/21(a)Operating profit (loss)*1 Include the Sakhalin Oil and Gas Development Co., Ltd., Energi Mega Pratama Inc., etc.
*2 Mainly intersegment elimination and corporate expense.
Furthermore, Corporate expense represents mainly general and administrative expenses and experiment and research expense that are not allocated to reporting segments.
*3 Segment profit (loss) is reconciled to operating profit in the consolidated statements of income.

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

25

4. Price Assumptions for FY3/21 Forecasts
2020

WTI

USD/bblCrude oil price (CIF) **USD/bblExchange rate

JPY/USD

2021

Full year

Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

Nov. 10

46.17

27.94

40.84

36.67

-

39.08

Feb. 845.10*

28.54*

41.02*

42.66

-

40.84

Nov. 10

-

44.41

33.34

40.00

40.00

39.14

Feb. 8-44.41*

33.34*

44.51*

45.00

41.64

Nov. 10-108.04106.88106.00106.00106.65

Feb. 8-108.04*106.88*105.46*105.00106.18

Nov. 10

22.30

11.29

30.21

24.56

-

23.18

Feb. 822.30*

11.29*

29.77*

31.04

-

25.00

Nov. 10

2.36

1.85

1.84

2.28

-

2.09

Feb. 8

2.36*

1.85*

1.89*

2.35

-

2.12

Sales Price
JACOS
Diluted bitumen***

USD/bblJML
Natural gas****

CAD/mcf*
Actual**Domestic sales price average of crude oil referring to crude oil (CIF) price and its conversion exchange rate*** Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)**** Natural Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

26

5. Sensitivities Analysis on FY3/21 Forecasts Basis
Impacts on profit for the period of 4Q FY3/21
Impacts on profit（Million Yen）

FY3/21 4Q
Assumptions

Fluctuation

Crude oil price

Crude oil price(CIF)
USD 45.00/bbl

Increase by
1USD/bbl

40

30

Exchange rate

105.00 JPY/USD

1 weaker JPY
against USD

50

10OperatingprofitProfitattributable toowners ofparentMain factors for change

Increase factor “+” / Decrease factor “( )”+ Sales of oil and gas(Increase in LNG procurement cost)+ Sales of oil and gas(Increase in LNG procurement cost)【Assumption】
・Changes in equity method investment gain are 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 and payables also occur.
Actual profits are influenced by various other factors besides crude oil prices and exchange rates.

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

27

6. E&P Business - Major E&P Projects
Canada Oil Sands Project
U.K. North Sea Seagull Project(Development)(Production)

Russia Sakhalin-1 Project(Production / Development)

Canada Shale Gas Project(Production / Development)

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

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

Block, lease or projects in which the JAPEX Group participates
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

28

E&P Business - North America
Canada Oil Sands Project
Project

Canada Shale Gas 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%)

Block

North Montney Area

Interest

10% (JAPEX net 5.5％ )Continuing flexible operation in line with market
conditions with 20,000bbl/d level bitumen

OperatorproductionGrossproduction
rate

JAPEX Montney Ltd. (JML)

Status

Production
Status

Project
company

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 12,470,000M3/d, (Approx 73,000boe/d)rate
as average of Jan.-Sep. 2020

19,000bbl/d

as average of Jan.-Sep. 2020

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

JAPEX’s share 55％

29

E&P Business - Europe/Middle East
Iraq Garraf Project

U.K. North Sea Seagull Project
JAPEX’s share 100％

Project
company

Japex Garraf Ltd. JAPEX’s share 55%

Field

Garraf Oil Field

Seagull Field

Interest

30% (JAPEX Net 16.5%)

Project
company

JAPEX UK E&P Ltd.

Block
Interest

15％ (JAPEX Net 15％)
StatusDevelopment

StatusOperator

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

Neptune E&P UK Limited

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30

Production* and Development toward
Plateau production target of 230,000
bbl/d*** Resumed production from mid-July 2020 aftersuspension of operations since mid-March 2020**Reviewing the development plan in response to Covid19 pandemic situation

Operator

PETRONAS Carigali Iraq Holding B.V. (PCIHBV)

Gross
production rate

Approx. 60,000bbl/d (Average for Jan.-Sep. 2020,excl.126 days of production suspension period)

E&P Business - Other Areas
Indonesia Kangean Project
Project
company

Energi Mega Pratama Inc.

Block

Kangean Block

Interest

100％ (JAPEX net 25%)

Status

Production

Operator

Kangean Energy Indonesia Ltd.

Gross
production
rate

5,180,000M3/d

Russia Sakhalin-1 Project

JAPEX’s share 25%
2 other affiliates(Approx. 32,000boe/d)
as average of Jan.- Sep. 2020

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

31

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%

E&P Business – Japan | I/U Business
E&P Business – Oil and Gas Fields in Japan Operating 10 oil and gas fields in Japan•

Started crude oil production from shallow reservoir of the Yufutsu Oil and Gas Field in Hokkaido in June 2020

 Efforts to maintain and increase domestic oil and gas production volume and reserves••

Considering developments around the existing fields to maintain and increase the short-term production volume and reserves
Considering additional E&P potential leveraging national surveys aiming to increase reserves over the mid-long term

I/U Business - Domestic Natural Gas Supply
 Supplying domestic-produced natural gas along with LNG by our domestic natural gas supply network•••

Total length over 800 km of high-pressure gas pipeline network mainly consisting of Niigata-Sendai Gas Pipeline
LNG handling sites such as the Yufutsu LNG Receiving Terminal in Hokkaido, the Soma LNG Terminal at Fukushima, and Nihonkai
LNG Co., Ltd. Niigata Terminal in Niigata
LNG satellite system for supplying LNG in liquid form, utilizing various methods such as tank trucks, tanks on the rail, and coastal
vessel Commissioned works concerning the fuel LNG of the Fukushima Natural Gas Power Plant*1 such as receiving,storing, regasifying LNG, and supplying the regasified LNG to the power plant

I/U Business – Electric Power Fukushima Natural Gas Power Plant：in commercial operation (No.1: April 2020, No.2: August 2020)
 Renewable energy：Running two mega solar projects in Hokkaido, and examining development projects andbusiness participation opportunities, particularly in biomass power generation and large-scale offshore wind
power
●Currently ongoing projects of renewable energy• Biomass
 Chofu Biomass Power Generation Project：Participating in the feasibility study in December 2020
• Participatiing in consortiums to study to realize large-scale offshore wind power generation projects
 A project at Noshiro-town, Mitane-town, Oga-town offshore in Akita Prefecture (North Akita) A project at Akita central sea offshore A project offshore Yuza-town, Yamagata Prefecture*1

Executing operation and management work by Fukushima Gas Power Co., Ltd., invested 5 companies including JAPEX.

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

32

New Business Development
Next-generation Technology Development Methane hydrate development•

Participating in offshore production test of sand-layer type methane hydrate, as a member of Japan Methane Hydrate Operating Co., Ltd.

 Deep-sea mineral resources survey•

Participating in “Developing Innovative Technologies for Exploration of Deep Sea Resources” led by JAMSTEC, which is one of the Cross-ministerial
Strategic Innovation Promotion Program (SIP) Phase 2 of Cabinet Office, as a member of the Research and Development Partnership for NextGeneration Technology of Marine Resources Survey (J-MARES)

New Business Model Development
 CCS / CCUS••

CCS demonstration project in the Tomakomai area conducted by Japan CCS Co., Ltd.(JCCS): Conducting monitoring after completing 300,000
tons (cumulative amount) of CO2 injection
Participating in “Research and development of CO2 storage technology for safe CCS implementation” of NEDO’s CCS demonstration project, as amember of the Geological Carbon dioxide Storage Technology Research Association

 Considering new business opportunities, utilizing environmental technologies such as hydrogen and carbon recycling••

Established the “Environmental Business Promotion Dept.,” a division dedicated to the creation of environmental technology-related businesses inJanuary 2021
Participating in “Niigata Carbon Neutral base and Hydrogen Utilization Promotion Council” and the “Niigata Port Carbon Neutral Port Study Group”
in January 2021

New Business Seeds
 Creating new LNG midstream and downstream businesses in Japan and overseas•••

LNG bunkering： Considering the gradual introduction based on timing of replacing vessels, which are routed our domestic bases such as Hokkaido, Tohoku,
and Niigata area
Implementation of LNG fueled trucks：Launched study groups at Hokkaido and Tohoku region
Aiming to participate in LNG related businesses, including LNG receiving terminal, satellite station, and container filling equipment in overseas

 Development of new energy source and supply•

Build a value chain for sustainable aviation fuel (SAF) utilizing used cooking oil as feedstock：Continuing a feasibility study Solution development in the field adjacent to existing business•

Considering the opportunities for development and marketing projects with our group companies and others
 Sales expansion of an oil absorption fiber “Abura Kuraudo,” and joint development of the hot spring monitoring system "Oyureco" with
Geophysical Surveying Co., Ltd.

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

33

7. Glossary■Abbreviations
BOE(D)

Barrels of Oil Equivalent (per Day)

CCS

Carbon dioxide Capture and Storage

CCUS

Carbon dioxide Capture, Utilization and Storage

CIF

Cost, Insurance and Freight

FID

Final Investment Decision

GHG

Greenhouse Gas

HSE

Health, Safety and Environment

JCC

Japan Crude Cocktail

MH

Methane Hydrate

RRR

Reserve Replacement Ratio

SAF

Sustainable Aviation Fuel

WTIWest Texas Intermediate■Main Subsidiaries and Affiliates
JACOS

Japex Canada Oil Sands Limited

Canada / Oil Sands Project

Japex Garraf

Japex Garraf Ltd.

Iraq / Garraf Project

JML

JAPEX Montney Ltd.

Canada / Shale Gas Project

SODECO

Sakhalin Oil & Gas Development Co., Ltd.

Russia / Sakhalin-1 Project

EMPI

Energi Mega Pratama Inc.

Indonesia / Kangean Project

DGN

Diamond Gas Nethelands B.V.

Malaysia LNG Project 3（Tiga）

FGP

Fukushima Gas Power Co., Ltd.

Natural gas-fired electric power generation Business

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

34

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 (FY3/21, for instance, means 12 months ending March 31, 2021)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:
Corporate Communication Office
Japan Petroleum Exploration Co., Ltd. (JAPEX)Tokyo, JAPANTEL: +81-3-6268-7111
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

35