[Explanatory Material]

Financial Results

for the Three Months Ended June 30, 2023

August 9, 2023

Japan Petroleum Exploration Co., Ltd.
Note: This document has been translated from the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

Contents
Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Three Months Ended June 30, 2023
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Note: This material also serves as the presentation material for the financial results briefing for the institutional investors and analysts
to be held on August 10, 2023.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

2

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Three Months Ended June 30, 2023
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

3

Ⅰ. Financial Highlights

Financial Highlights
FY3/24 Forecast Revision （vs. May 12 Forecasts）

1Q FY3/24 Results（Year-on-year）
1Q FY
3/23 (a)1Q FY
3/24 (a)ChangeOperating profit

9.8

12.9

+3.0

Ordinary profit

22.6

18.2

(4.3)

Profit attributable toowners of parent

15.6

12.9

(2.6)

(Billion Yen)

Operating profit ： Increase in sales price of natural gas(Japan) and increase in sales volume of tight oil development in
U.S., etc.
Ordinary profit ： Decrease in equity in earnings of affiliates
and foreign exchange gains



May 12,2023 (f)Aug 9,
2023 (f)ChangeOperating profit

41.2

38.9

(2.3)

Ordinary profit

45.5

44.8

(0.7)

Profit attributable toowners of parent

34.0

34.0

-

(Billion Yen)

Operating profit ： Expect decrease in sales volume due todelay in the start of production at the Seagull project in U.K.
North Sea
Ordinary profit ： Expect record of foreign exchange gains

Dividend Policy


FY3/24 annual dividend (forecast)：200.0 yen per share (interim 100 yen + year-end 100 yen), unchanged from the previous
forecast ※Based on shareholder return policy of 30% dividend payout ratio

Business ProgressCapital participation in a subsidiary of U.K.-based Longboat Energy PLC (Longboat JAPEX Norge AS : LBJ) which promotes explorationand development in offshore Norway (May)
Agreed to acquire additional well interests in tight oil development project in U.S. (May)CCS Studies in Tomakomai Area and East-Niigata Area were commissioned as the “Business Feasibility Study on Japanese Advanced
CCS Project” by JOGMEC in FY2023 (Jul and Aug)

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

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Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Three Months Ended June 30, 2023
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

5

Ⅱ. Financial Results for the Three Months Ended June 30, 2023

FY3/24 Results (Year-on-Year)
Million Yen

1Q FY3/23 (a)1Q FY3/24 (a)ChangeNet sales

58,61761,321+2,704+5%

Gross profit

16,696

20,508+3,812+23%

Operating profit

9,810

12,903+3,093+32%

Ordinary profit

22,60018,219(4,381)(19%)

Profit attributable to owners of parent

15,64012,999(2,640)(17%)

Oil Price and Exchange Rate
1Q FY3/23 (a)1Q FY3/24 (a)ChangeWTI

USD/bbl

94.41

76.11

(18.30)

Crude oil price (CIF)

USD/bbl101.5585.17(16.38)Exchange rate

JPY/USD

122.50134.36+11.86

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

6

Ⅱ. Financial Results for the Three Months Ended June 30, 2023

E&P Business Sales (Year-on-Year)
1Q FY3/24 (a)1Q FY3/23 (a)Net sales：Million Yen

Unit

Sales volume-

E&P BusinessNet sales

Sales volume

ChangeSales volume

Net sales

Net sales

-

7,266

-

10,724--+3,458

+48%

79

7,251

152

10,608+73+93%+3,356

+46%

67

5,640

50

3,700

[1]

(16)

(25%)

(1,939)

(34%)

7

1,192

97

6,532

[2]

+90

+1,291%+5,339

+448%

5

418

5

375

(0)

(2%)

(43)

(10%)

0

14

10

116

+9

+1,312%

+101

+701%

Breakdown
Crude oil
Crude oil - Japan
Crude oil - Overseas

Thousand KL*1

Purchased crude oil*2Natural Gas - Overseas

Million M3

Main factors for change[1] Decrease in sales price and sales volume[2] Increase in sales volume of tight oil development in U.S.

*1 Include the amounts of Japex Garraf Ltd., and Japex (U.S.) Corp.
*2 Include the amounts of Japex (U.S.) Corp.

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Ⅱ. Financial Results for the Three Months Ended June 30, 2023

I/U Business Sales (Year-on-Year)
1Q FY3/24 (a)1Q FY3/23 (a)Net sales：Million Yen

Unit

Sales volume-

Infrastructure & Utility Business

Sales volume

Net sales

ChangeNet sales

Sales volume

Net sales-

36,009-36,398

-

-

+388

+1%

231

17,923202

20,200

(29)

(13%)

[1] +2,277

+13%

109

-

102

-

(7)

(7%)

-

-

Breakdown
Natural Gas - Japan- Produced in Japan

Million M3

LNG

Thousand Ton

49

6,062

30

1,498

[2]

(18)

(37%)

(4,563)(75%)

Electricity

Million kWh

665

10,986774

13,137

[3]

+108

+16%

+2,150

+20%

-

1,037

-

1,561

-

+524

+51%

Other*--

Main factors for change[1] Increase in sales price of natural gas (Japan)[2] Decrease in sales volume etc.
[3] Increase in sales price and sales volume* Including net sales from commissioned business including transport of natural gas and regasification of LNG

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Ⅱ. Financial Results for the Three Months Ended June 30, 2023

Operating Profit (Year-on-Year)
E&P Business(Billion Yen)

9.8

OP total

12.9

Overseas : +2.2 bn.

(0.3 bn.)

Domestic : +0.3 bn.

8.6 bn. →• Increase in sales volume of tight oil development in U.S.
（+）

(0.3)

•

1.9

9.0 bn.

Decrease in sales volume and sales price of crude oil(Japan)（－）
Increase in sales price* of natural gas (Japan)（+）•
E&P-Overseas→ 1.9 bn.

∗

Internal transaction price from E&P Business to Infrastructure/Utilities
Business for the internal management

8.6

E&P-Japan

I/U Business9.0+0.6 bn.
4.0→

4.0 bn.

Decrease in marginal gain on LNG procurement （－）
Effect of raw material slide time lag, etc. （+）

•
•

3.3

I/U

3.3 bn.

Others *(1.8)

Others(0.2 bn.)

(2.0)

(5.0)

∗

0.0
1Q FY3/23 (a)

5.0

10.0

15.0

(1.8 bn.)→(2.0 bn.)

Operating profit (contracting, oil products and commodities, and others)
not belonging to the above business units, less headquarters
administrative expenses

1Q FY3/24 (a)Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

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Ⅱ. Financial Results for the Three Months Ended June 30, 2023

Analysis of Net Income change (Year-on-Year)(Billion Yen)

JUS

+1.7 bn.

Japex Garraf
JAPEX(1.6 bn.)(0.3 bn.)

SODECO
DGN

Net
incomeOperating profit*+3.0 bn.

FY3/23
1Q (a)

E&P
overseas

E&P
Japan

I/U

FY3/23
1Q (a)(0.3)

8.6

FY3/24
1Q (a)

1.9

9.0(5.0 bn.)(0.4 bn.)Non-operating income(7.4 bn.)

Net
incomeOthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

5.9

0.0

(0.0)

5.3

1.6

0.3

0.2

(0.0)

4.3

0.8

OthersForeignexchange
gains and loss

Equity on
earnings

3.3

(1.8)

6.7

4.0

(2.0)

4.7

FY3/24
1Q (a)Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
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10

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Three Months Ended June 30, 2023
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

11

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

FY3/24 Forecasts (vs Initial Forecasts)
Million Yen

Initial (f) May 12, 2023

Revised (f) Aug. 9, 2023

ChangeNet sales

300,600

306,100+5,500+2%Gross profit

75,30074,200(1,100)(1%)

Operating profit

41,20038,900(2,300)(6%)

Ordinary profit

45,50044,800

(700)

(2%)

Profit attributable to owners of parent

34,00034,000--%

Oil Price and Exchange Rate
Initial (f) May 12, 2023

Revised (f) Aug. 9, 2023

ChangeWTI

USD/bbl

75.00

75.60

+0.60

Crude oil price (CIF)

USD/bbl

75.00

77.45

+2.45

Exchange rate

JPY/USD

125.00131.16+6.16

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12

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

E&P Business Sales Forecasts (vs Initial Forecasts)
Initial (f) May 12, 2023
Net sales：Million Yen

Unit

E&P Business-

Sales volume

Net sales

Revised (f) Aug. 9, 2023
Sales volume

ChangeNet sales

Sales volume

Net sales-

91,724-

93,514--+1,789+2%

1,589

88,964

1,591

91,549+2+0%+2,584+3%

206

12,410206

13,255

(0)

(0%)

+845

+7%

1,364

75,431

1,367

77,110+3+0%+1,678

+2%

18

1,122

17

1,183

(0)

(4%)

+60

+5%

95

2,760

86

1,965

(8)

(9%)

(794)

(29%)

Breakdown
Crude oil
Crude oil - Japan

Thousand KL

Crude oil - overseas*1
Purchased crude oil*2Natural Gas - Overseas

Million M3

[2]

[3]

[1]

Main factors for change[1] Increase in sales price[2] Decrease in sales volume due to delay in the start of production at the Seagull project in U.K. North Sea / Increase in sales volume of crude oil from
Garraf Project in Iraq
[3] Decrease in sales volume due to delay in the start of production at the Seagull project in U.K. North Sea

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13

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

I/U Business Sales Forecasts (vs Initial Forecasts)
Initial (f) May 12, 2023
Net sales：Million Yen

Unit

Infrastructure & Utility Business-

Sales volume

Net sales

Revised (f) Aug. 9, 2023
Sales volume

ChangeNet sales

Sales volume

Net sales-

147,305-

150,567--+3,262+2%

996

77,288976

78,775(19)(2%)[1] +1,487

+2%

470

-

459

-

(11)

(2%)

-

-

Breakdown
Natural Gas - Japan- Produced in Japan

Million M3

LNG

Thousand Ton

223

19,738218

19,291

(4)

(2%)

(446)

(2%)

Electricity

Million kWh

3,021

43,445

3,137

46,126[2] +115+4%+2,681+6%

Others*

-

-

6,833

-

6,373

-

(460)

(7%)

-

Main factors for change[1] Increase in sales price[2] Increase in sales volume and sales price* Including net sales from commissioned business including transport of natural gas and regasification of LNG

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Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Operating Profit Forecasts (vs Initial Forecasts)(Billion Yen)

E&P Business

41.2

OP total

14.8 bn.

→

12.8 bn.

Domestic : +0.9 bn.

20.3 bn.

→

21.2 bn.

Decrease in sales volume due to delay in the start ofproduction at the Seagull project in U.K. North Sea（－）

•

38.9

Increase in sales price of crude oil (Japan) due to a rise of
crude oil prices （＋）

•

14.8

E&P-Overseas

Overseas : (1.9 bn.)

12.8

∗

Internal transaction price from E&P Business to Infrastructure/Utilities
Business for the internal management

20.3

E&P-Japan

I/U Business21.2(1.0 bn.)
•

14.5

I/U

14.5 bn.

→

13.5 bn.

→(8.8 bn.)

Decrease in marginal gain on LNG procurement （－）

13.5

Others*(8.5)

Others(8.8)(0.2 bn.)∗(20.0)(10.0)

0.0

Initial (f) May.12, 2023

10.0

20.0

30.0

40.0

50.0

(8.5 bn.)

Operating profit (contracting, oil products and commodities, and others)
not belonging to the above business units, less headquarters
administrative expenses

Revised (f) Aug.9, 2023

Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

15

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Analysis of Change in Net Income Forecasts (vs Initial Forecasts)(Billion Yen)

Japex Garraf
JUS

Net
incomeJapex Garraf
JAPEX+0.2 bn.
(2.1 bn.)

Operating profit*(2.3 bn.)

FY3/24 (f)May 12

E&P
overseas

E&P
Japan

I/U

FY3/24 (f)May 12

14.8

20.3

FY3/24 (f)Aug. 912.8

21.2+1.4 bn.
+0.5 bn.

LBJ(0.5 bn.)Non-operating income+1.6 bn.

Net
incomeOthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

0.8

3.4

-

11.2

0.3

0.3

3.6

(0.1)

9.8

0.9

OthersForeignexchange
gains and loss

Equity on
earnings

14.5

(8.5)

-

13.5

(8.8)

2.0

FY3/24 (f)Aug. 9Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
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16

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

FY3/24 Forecasts (Year-on-Year)
Million Yen

FY3/23 (a)FY3/24 Revised (f)ChangeNet sales

336,492

306,100(30,392)(9%)

Gross profit

96,111

74,200(21,911)(23%)

Operating profit

62,08538,900(23,185)(37%)

Ordinary profit

83,13044,800(38,330)(46%)

Profit attributable to owners of parent

67,39434,000(33,394)(50%)

Oil Price and Exchange Rate
FY3/23 (a)FY3/24 Revised (f)ChangeWTI

USD/bbl

94.42

75.60

(18.82)

Crude oil price (CIF)

USD/bbl102.2677.45(24.81)

Exchange rate

JPY/USD

132.86131.16(1.70)

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17

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

E&P Business Sales Forecasts (Year-on-Year)
FY3/24 Revised (f)FY3/23 (a)Net sales：Million Yen

Unit

Sales volume-

E&P BusinessNet sales

Sales volume

ChangeSales volume

Net sales

Net sales-

56,063-93,514--37,451+67%

695

55,703

1,591

91,549

+895

+129%

+35,846+64%

238

20,760206

13,255

[1]

(31)

(13%)

(7,504)

(36%)

436

33,084

1,367

77,110

[2]

+930

+213%

+44,025

+133%

20

1,858

17

1,183

(3)

(16%)

(674)

(36%)

11

360

86

1,965

+75

+655%

+1,604+445%

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

Thousand KL

Purchased crude oil

Natural Gas - Overseas*2

Million M3[3]

Main factors for change[1] Decrease in sales volume and sales price[2] Increase in sales volume of tight oil development in U.S. and Garraf Project in Iraq. Increase in sales volume due to the scheduled start of production at
the Seagull project in U.K. North Sea[3] Increase in sales volume of tight oil development in U.S. Increase in sales volume due to the scheduled start of production at the Seagull project in U.K.
North Sea
*1 FY3/23 includes the amounts of Japex Garraf Ltd. and Japex (U.S.) Corp. and FY3/24 includes the amounts of Japex Garraf Ltd. , Japex (U.S.) Corp.and JAPEX UK E&P Ltd.
*2 FY3/23 include the amounts of Japex (U.S.) Corp. and FY3/24 includes the amounts of Japex (U.S.) Corp. and JAPEX UK E&P Ltd.

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18

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

I/U Business Sales Forecasts (Year-on-Year)
FY3/24 Revised (f)FY3/23 (a)Net sales：Million Yen

Unit

Infrastructure & Utility Business-

Sales volume

Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

213,657-

150,567--(63,090)

(30%)

989

97,360976

78,775(12)(1%)[1] (18,584)

(19%)

461

-

459

-

(2)

(0%)

-

-

Breakdown
Natural Gas - Japan- Produced in Japan

Million M3

LNG

Thousand Ton

340

51,572

218

19,291[2] (121)(36%)(32,281)(63%)

Electricity

Million kWh

3,005

58,735

3,137

46,126+131+4%[3] (12,608)(21%)

Others*

-

-

5,988

-

6,373

-

+384

+6%

-

Main factors for change[1]-[2]Decrease in sales price of natural gas (Japan) and LNG due to decrease of JLC price ,and decrease in sales volume of LNG[3] Decrease in sales price of electricity* Including net sales from commissioned business including transport of natural gas and regasification of LNG

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19

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Operating Profit Forecasts (Year-on-Year)(Billion Yen)

E&P Business
Overseas : +10.9 bn.
•

62.0

OP total

38.9•

Domestic : (19.9 bn.)

E&P-Overseas

12.8

•

∗

41.1

E&P-Japan

21.2

12.8 bn.

41.1 bn.

→

21.2 bn.

Internal transaction price from E&P Business to Infrastructure/Utilities
Business for the internal management

I/U Business(11.0 bn.)

24.6

I/U

→

Decrease in sales volume and sales price of crude oil (Japan)（－）
Decrease in sales price* of natural gas (Japan) due todecrease of JLC price （－）•

1.9

1.9 bn.

Increase in sales volume of tight oil development in U.S.
（＋）
Increase in sales volume of crude oil due to the scheduledstart of production at the Seagull Project in U.K. North Sea（＋）
Absence of one-time expenses from Japex Garraf Ltd. （＋）

•

•

13.5

24.6 bn.

→

13.5 bn.

→(8.8 bn.)

Decrease in margin on LNG procurement （－）

Others*Others(5.6)(3.1 bn.)(8.8)(20.0)

0.0
FY3/23 (a)

20.0

40.0

60.0

FY3/24 Revised (f)80.0(5.6 bn.)• Increase in general and administrative expenses(Personnel and digital-related expenditures) （－）• Decrease in profit of contract services and others at
subsidiaries （－）∗

Operating profit (contracting, oil products and commodities, and others)
not belonging to the above business units, less headquarters
administrative expenses

Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
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20

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Analysis of Change in Net Income Forecasts (Year-on-Year)(Billion Yen)

Japex Garraf
JAPEX

JUS
JUK
Japex Garraf(2.1 bn.)(1.2 bn.)

SODECO
DGN
LBJ(3.7 bn.)(2.2 bn.)(0.5 bn.)+6.3 bn.
+1.9 bn.
+1.8 bn.
(FY3/23) Gain on derivatives

Net
incomeOperating profit*(23.1 bn.)Non-operating income(15.1 bn.)
OthersIncometaxes

Profitattributable tononcontrollinginterest

7.1

8.6

(0.0)

15.1

0.5

0.3

3.6

(0.1)

9.8

0.9

OthersEquity on
earnings

24.6

(5.6)

5.3

13.5

(8.8)

2.0

FY3/23 (a)

E&P
Japan

I/U

FY3/23 (a)

1.9

41.1

FY3/24
Revised (f)

12.8

21.2

Net
incomeExtraordinary
incomeForeignexchange
gains and loss

E&P
overseas(6.0 bn.)

FY3/24
Revised (f)Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
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21

Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Cash Flows and Debt
Million Yen

FY3/23 (a)FY3/24 (f)Full year

Full year

Cash flows from operating activities

May 12

Aug.9

104,581

98,29384,655

Profit before income taxes

83,08445,50044,700Depreciation

14,257

27,78826,587

Recovery of recoverable accounts

18,29538,482

41,581

Cash flows from investing activities(52,723)(87,422)(116,539)

Purchase of property, plant and equipment(35,973)(54,433)(84,136)

Payments of recoverable accounts(27,729)(39,756)(33,538)

Cash flows from financing activities(14,506)(18,417)(19,145)

Cash and cash equivalents at end of period

186,166

178,619

135,137

Interest-bearing debt*1

10,413

10,14910,149

EBITDA*2

85,316

77,392

74,177

0.1

0.1

0.1

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 based on investment cash flow statement
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22

Appendix
1. Net Sales

2. Financial Results
3. Segment Profit

4. Price Assumptions for FY3/24 Forecasts

5. Sensitivities Analysis on FY3/24 Forecasts Basis

6. Business Overview

7. Integrated Report and IR Materials
8. Glossary

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23

Appendix

1. Net Sales - E&P
Million Yen

FY3/23 (a)1Q

FY3/24

Full year

1Q

Full year (f)May 12

Sales
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 Natural gas -overseas *2(Million M3)

Net sales
WTI（USD/bbl）
Crude oil price (CIF) (USD/bbl) *3

Aug. 97,266

56,063

10,72491,724

93,514

79

695

152

1,589

1,591

7,251

55,703

10,60888,96491,549

67

238

50

206

206

5,640

20,7603,700

12,41013,255

7

436

97

1,364

1,367

1,192

33,084

6,532

75,431

77,110

5

20

5

18

17

418

1,858

375

1,122

1,183

0

11

10

95

86

14

360

116

2,760

1,965

94.41

94.42

76.11

75.00

75.60

101.55102.26

85.17

75.00

77.45

*1 FY3/23 includes the amounts of Japex Garraf Ltd. and Japex (U.S.) Corp. and FY3/24 includes the amounts of Japex Garraf Ltd., Japex (U.S.) Corp. and JAPEX UK E&P Ltd.
*2 FY3/23 include the amount of Japex (U.S.) Corp. and FY3/24 includes the amount of Japex (U.S.) Corp. and JAPEX UK E&P Ltd.
*3 Domestic sales price average of crude oil referring to crude oil price (CIF)

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

24Appendix

1. Net Sales - I/UMillion Yen

FY3/23 (a)1Q

FY3/24

Full year

1Q

Full year (f)May 12
Aug. 936,009213,657

36,398147,305

150,567

231

989

202

996

976

17,92397,36020,20077,28878,775

109

461

102

470

459

49

340

30

223

218

6,062

51,572

1,498

19,73819,291

665

3,005

774

3,021

3,137

Net sales

10,98658,735

13,13743,445

46,126

Others*

1,037

5,988

1,561

6,833

6,373

JLC Price (JPY / ton)

101,863

126,286

88,28777,30080,422

Sales
Sales volume of Natural gas – Japan (Million M3)
Net sales
Sales volume of Natural gas produced in Japan (Million M3)
Sales volume of LNG (Thousand ton)
Net sales
Sales volume of Electricity (Million kWh)

* Including net sales from commissioned business including transport of natural gas and regasification of LNG

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

25

Appendix

2. Financial Results
Million Yen

FY3/23 (a)1Q

Net sales

FY3/24

Full year

1Q

Full year (f)May 12

Aug. 958,617

336,492

61,321

300,600

306,100

E&P Business

7,266

56,063

10,72491,724

93,514

Infrastructure/Utility Business

36,009213,657

36,398147,305

150,567

Others15,341

66,771

14,19961,57062,018

Cost of sales

41,920240,380

40,812

225,300

231,900

Gross profit

16,696

96,111

20,50875,30074,200

97

2,885

255

4,700

4,800

SG&A expenses

6,788

31,1397,349

29,40030,500Operating profit

9,810

62,085

12,903

41,20038,90012,78921,044

5,315

4,300

5,900

Interest income

149

1,173

520

627

900

Interest expenses

(1)

(5)

(24)

(363)

(1,100)

Dividend income

47

3,520

57

3,719

3,600

5,988

7,109

338

859

300

-

(44)

(15)

(120)

(100)

Foreign exchange gains and loss

6,748

5,332

4,764

-

2,000

Other

(142)

3,958

(325)

(422)

300

22,60083,13018,21945,50044,800Extraordinary income (loss)

(1)

(46)

(9)

0

(100)

Profit before income taxes

22,59883,084

18,20945,50044,700

Income taxes

5,304

15,102

4,335

11,2009,800

Profit attributable to non-controlling interests

1,653

587

874

300

900

15,64067,394

12,99934,00034,000Exploration expenses

Non-operation income (expense)

Share of profit of entities accounted forusing equity method
Provision for overseas investment

Ordinary profit

Profit (loss) attributable to owners of parent

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

26

Appendix

3. Segment Profit
Million Yen

FY3/23 (a)1Q

FY3/24 (f)Full year

1Q

Full year
May 12

Operating profit (loss)Japan

Share of profit (loss) of entities
accounted for using equity
methodOperating profit (loss)

North America

Share of profit of entities
accounted for using equity
methodOperating profit (loss)

EuropeShare of profit of entities
accounted for using equity
methodOperating profit (loss)

Middle East

Share of loss of entities
accounted for using equity
methodOperating profit (loss)

Others*1

Share of profit of entities
accounted for using equity
methodAdjustments andEliminations*2
Amounts on consolidated
statement of income*3
*1
*2
*3

Operating profit (loss)

Aug. 911,472

68,855

13,732

38,031

38,157

291

326

136

319

291

227

4,210

1,952

10,474

10,543

-

-

-

-

-

(33)

(170)

(111)

4,007

1,823

-

-

-

-

(497)

522

(112)

447

1,478

1,741

(3)

(11)

(1)

(7)

(5)

-

-

-

-

-

5,699

6,793

202

547

510

(2,378)(10,697)(3,118)(12,792)(13,366)

9,810

62,085

12,903

41,20038,900Include the Sakhalin Oil and Gas Development Co., Ltd., Energi Mega Pratama Inc., and others
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.
Segment profit (loss) is reconciled to operating profit in the consolidated statements of income.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

27

Appendix

4. Price Assumptions for FY3/24 Forecasts
Upper: from January 2022 to March 2023
Full year

Lower: from January 2023 to March 2024
Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

FY3/23 (a)-101.55115.31105.9389.98

102.26

Initial (f)May 12

-

75.00

75.00

75.00

75.00

75.00

Revised (f)Aug. 9-85.17*2

75.00

75.00

75.00

77.45

FY3/23 (a)94.41

108.65

91.76

82.85

-

94.42

Initial (f)May 12

75.00

75.00

75.00

75.00

-

75.00

Revised (f)Aug. 976.11*2

76.27*2

75.00

75.00

-

75.60

FY3/23 (a)-101,863

143,821

142,404

117,057

126,286

Initial (f)May 12-82,80075,70075,40075,40077,300

Revised (f)Aug. 9-88,287

81,40076,20075,80080,422

FY3/23 (a)-122.50133.58143.32133.39132.86

Initial (f)May 12-125.00125.00125.00125.00125.00

Revised (f)Aug. 9-134.36*2

130.00130.00130.00131.16

Market Price

Crude oil price (CIF) *1

WTI

JLC price

Exchange rate

USD/bbl

USD/bbl

JPY/Ton

JPY/USD*1 Domestic sales price average of crude oil referring to crude oil (CIF)*2 Actual

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

28

Appendix

5. Sensitivities Analysis on FY3/24 Forecasts Basis
FY3/242Q-4Q
Assumptions

Impacts on profit（Million Yen）
Fluctuation
Operating profit

Profitattributable toowners of parent

Main factors for change
positive factor “+”/ negative factor “-”

Crude oil price

Crude oil price (CIF)
USD 75.00/bbl

Increase by
1USD/bbl

320

240+ Sales of oil and gas- Increase in LNG procurement cost

Exchange rate

JPY 130.00/USD

1 weaker JPY
against USD

570

320

+ Sales of oil and gas- Increase in LNG procurement cost

【Assumptions】• 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-denominatedreceivables and payables also may occur.
• Actual profits are influenced by various other factors besides crude oil prices and exchange rates.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

29

Appendix

6. Business Overview ② E&P Field[3] Norway: Offshore Blocks

E&P Business site

[5] Russia: Sakhalin 1 Project[4] UK North Sea: Seagull Project[1] Iraq: Garraf Project[6] United States:
Tight Oil Development[A] Japan: Domestic oil and gas fields(10 sites in Hokkaido, Akita, Yamagata, and Niigata)

JAPEX Group E&P business baseJapan[2] Indonesia・Kangean ProjectOverseas

10 fields
6 projects

 JAPEX Group oil and gas E&P fields/projects (as of Aug., 2023)
No.

Oil and gas field/Project title (Operator)

Interest Share（JAPEX’s net）

Production type

Status

Production Volume*1

Differ by interest

Crude oil/natural gas

Production/
Development

Undisclosed

A

Japan: Domestic oil and gas fields(Total of 10 locations in Hokkaido, Akita, Yamagata, and Niigata)1

Iraq: Garraff Project (PETRONAS Carigali Iraq Holding B.V.)

30% (16.5%)

Crude oil

Production/
Development

Approx. 148,000bbl*2

2

Indonesia: Kangean Project (Kangean Energy Indonesia Ltd.)

100％ (25%)

Crude oil/natural gas

Production

Approx. 2,580,000m3(Approx. 15,000boed)

3

Norway: Offshore Blocks (Longboat JAPEX Norge AS*3)

Differ by interest-

Exploration /Development-

4

UK North Sea: Seagull Project (Neptune E&P UK Limited)

15% (15％)

Crude oil/natural gas

Development(Scheduled to start
production in FY2023)

5

Russia: Sakhalin-1 Project (Sakhalin-1 Limited Liability Company: S1LLC)

30% (4.59％)*3

Crude oil/natural gas

Production/
Development

Undisclosed

6

North America: Tight Oil Development(Marathon Oil Corporation, EOG Resources Inc., etc.)

Differ by interest

Crude oil/natural gas

Production/
Development

Undisclosed*1: Average daily Production for 1Q FY2023 (Jan.-Mar. 2023 for overseas projects) / *2:Average daily production Apr.2023-Jun.2023*3: Company name was changed upon completion of capital participation (49.9% stake) in Jul. 2023
*4: Pursuant to Government of the Russian Federation order on November 2022,Sakhalin Oil and Gas Development Co., Ltd.(SODECO) was approved to subscribe for 30% equity of the S1LLC.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

30

Appendix

6. Business Overview ③ I/U Field - Gas Supply
Features of JAPEX's domestic gas supply network

High-pressure gas pipeline network over 800 km total

2 LNG terminals for ocean-going carriers

Capable to supply from Sea of Japan and Pacific Ocean Domestic gas supplyDomestic produced gas and regasified LNG supply via pipelines
Receive, storage, regasify, and deliver LNG
LNG satellite system: tank trucks, domestic vessels
Third-party or consignment use of our gas pipelines and LNG terminals etc.

 Respond to diversification of domestic gas supplySupport fuel switching to natural gas from other fossil fuels
Propose and provide energy services in cooperation with city
gas suppliers LNG procurement
Procure competitive LNG with a combination of term and spot
contracts Overseas LNG supply infrastructure

Launch new projects or other process mainly in Southeast Asiawith stronger demands for gasOngoing feasibility study: Northern Vietnam LNG terminal project

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

31

Appendix

6. Business Overview ④ I/U Field - Electricity[1] Abashiri Biomass
BIO
Power Plant No.2&3

JAPEX’s joining power plants are

7 sites

Total(Renewable energy 6 sites

Total output 1,389,550kW

Renewable energy 209,550kW)※ Total output represents gross plant output[2] Mega solar power generation
at JAPEX Hokkaido District OfficePV[3] Yufutsu Solar Power Plant

PV Power plants in development and operation (as of Aug., 2023)
No.

Name

Location

Type

Capacity
(kW)

Share

StatusA

Fukushima Natural Gas Power Plant

Shinchi Town,
Fukushima

Natural gas(LNG)

1,180,000

33%

In operation

1

Abashiri Biomass No.2&3 Power Plants

Abashiri City,
Hokkaido

Biomass(wood chip)

19,80033.8%

In operation

2

Mega solar power generation
at JAPEX Hokkaido District Office

Tomakomai City,
Hokkaido

PV

1,800

100%

In operation

3

Yufutsu Solar Power Plant

Tomakomai City,
HokkaidoPV13,00020%

In operation

Tahara Biomass Power Plant

Tahara City,
Aichi

Biomass(wood pellet)

50,00039.9%

In construction

Biomass(wood pellet)

50,00035%

In construction

Biomass(wood pellet)

74,95039.9%

In construction

4
5

Ozu Biomass Power Plant

Ozu City,
Ehime

6

Chofu Biomass Power Plant

Shimonoseki City,
Yamaguchi Other renewable energy project

PHOTON Sustainable Solar Investment Limited Partnership(funding up to 10 billion yen in PV generation projects including
non-FIT projects; 50% of our investment ratio)[6] Chofu Biomass Power Plant

BIO

LNG

[4] Tahara Biomass Power Plant

BIO

BIO
[5] Ozu Biomass Power Plant

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

[A] Fukushima Natural Gas Power Plant

Gas power plant
Renewable power plant
Renewable power plant(under construction)

32

Appendix

6. Business Overview ⑤ CN Field Ongoing CCS/CCUS initiatives to promote/participate inJapan

Realize hub & cluster model by FY2030

 Consideration in JAPEX Examination of CO2 storage capacity in our oil and gas fields, etc.
 Study of re-injection of associated CO2 from our oil and gas field
operations
 Feasibility study with companies/cross-industry
 Feasibility study of CCUS project in Tomakomai area with Idemitsu and
HEPCO JAPEX, Idemitsu, and HEPCO commissioned a CCS Study inTomakomai Area as the “Business Feasibility Study on JapaneseAdvanced CCS Project” in FY2023 (Jul) JAPEX, MGC, TOHOKU-EPCO, HC and NRI commissioned a Study inEast-Niigata Area as the “Business Feasibility Study on JapaneseAdvanced CCS Project” in FY2023 by JOGMEC (Aug) Considering of possibility of a business that effectively utilizes CO2 in
the Niigata area with Mitsubishi Gas ChemicalCommonOverseas

Early profit earning in advanced countries& consideration in emerging countries

 Consideration in JAPEX
 Consideration for participation in CCS/CCUS projects in North
America, Europe and other systematically advanced areas
 Feasibility study on companies/cross-industry
 Joint feasibility study of a CCUS project in Indonesia's Sukowati oilfield utilizing bilateral credits (with Pertamina Group and Lemigas)
 Signed Joint Study Agreement with JOGMEC and Pertamina Group to
conduct study towards CO2 injection test at Sukowati oil field inIndonesia (Jun) Agreed on Joint Evaluation with JFE Steel Corporation to establish
CCS Value Chain Originated from Japan aligned with CCS Study in
Malaysia (Jointly conducted with PETRONAS, JGC Global Corporation,
and Kawasaki Kisen Kaisha, Ltd. on a survey of suitable sites andtechnical studies with a view to implementing CO2 geological storage,
and the three Japanese companies' consortium was adopted as a
subsidized project by the Agency for Natural Resources and Energy
in 2022). (Jun) Technical and other related study Study on technical issues of energy transportation infrastructure for the realization of a CN society with JFE Engineering

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

33

Appendix

7. Integrated Report and IR Materials
Please visit our website for the integrated report and IR materials.
Integrated Report Integrated Reporthttps://www.japex.co.jp/en/ir/library/integratedreport/
The latest issue(Integrated Report 2022, published in September 2022)

is available directly via the following link

https://www.japex.co.jp/en/ir/uploads/pdf/JAPEX_IR2022_e.pdf

Disclosure Materials Archive Financial Results

https://www.japex.co.jp/en/ir/library/result/ Explanatory Materials

https://www.japex.co.jp/en/ir/library/explanatory/

 Securities Reporthttps://www.japex.co.jp/en/ir/library/report/

Performance information, etc.
 Financial highlights for 5 years* Past 10 years’ CVS data is also available Shareholder Returns (Dividends)

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

https://www.japex.co.jp/en/ir/figure/https://www.japex.co.jp/ir/uploads/JAPEX_10yearFinancialData_e.xlsx

https://www.japex.co.jp/en/ir/stock/dividend/34

Appendix

8. 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 FreightCN

Carbon neutral

E&P

Exploration and Production

I/U

Infrastructure & Utility

JCC

Japan Crude Cocktail

WTIWest Texas Intermediate Main Subsidiaries and Affiliates
Japex Garraf

Japex Garraf Ltd.

Iraq / Garraf Project

EMPI

Energi Mega Pratama Inc.

Indonesia / Kangean Project

SODECO

Sakhalin Oil & Gas Development Co., Ltd.

Russia / Sakhalin-1 Project

LBJ

Longboat JAPEX Norge AS

Norway: Offshore Blocks

FGP

Fukushima Gas Power Co., Ltd.

Natural gas-fired electric power generation Business

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

35

Cautionary Statement
This document contains future outlooks such as plans, forecasts, strategies, and others which are nothistorical facts and these are made by the management’s judgement based on 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 (FY3/24, for instance, means 12 months ending March 31, 2024)
・Figures in parentheses in "Operating profit," "Ordinary profit," " Share of profit of entities accounted for using equity
method," and " Profit attributable to owners of parent" represent losses in each category.
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, JAPAN TEL: +81-3-6268-7111

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

36

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

37