[Explanatory Material]

Financial Results
for the Three Months Ended June 30, 2021

August 10, 2021

Japan Petroleum Exploration Co., Ltd.

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

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

Contents
Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Three Months Ended June 30, 2021
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2022

Note) This material also serves as the presentation material for the financial results briefing for the institutional investors and analysts to be heldon August 11, 2021.
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

2

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Three Months Ended June 30, 2021
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2022

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

3

Financial Highlights■ 1Q FY3/22 Results （Year-on-Year）(Billion Yen)

FY3/21 1Q (a)FY3/22 1Q (a)ChangeOperating profit

(5.2)

3.4

+8.6

-

Ordinary profit

(9.5)

10.4

+20.0

-

Profit attributable to owners of parent

(9.5)

7.1

+16.6

-

• E&P business：

Increase in profit of domestic sales and diluted bitumen sales due to a rise of crude oil prices• I/U Business：

Increase in profit due to an increase of the sales volume of electricity by operating for the fullreporting period in Fukushima Natural Gas Power Plant* and marginal gain on LNG procurement• Non-operating income：

Increase in profit due to the recognition of foreign exchange gains and an increase in share of profit ofentities accounted for using equity method■ FY3/22 Forecast Revision （vs. May 13 Forecasts）(Billion Yen)

May 13, 2021 (f)Aug 10, 2021 (f)ChangeOperating profit

8.2

11.8

+3.6

+45%

Ordinary profit

15.7

26.1

＋10.4

+66%

(28.3)(114.0)(85.7)-

Profit attributable to owners of parent• E&P business：

Improvement in profit of domestic sales due to a rise in oil price assumption• I/U Business：

Decrease in marginal gain on LNG procurement• Non-operating income：

Increase in foreign exchange gains and share of profit of entities accounted for using equity method• Extraordinary losses：

Recognition of losses on sale of subsidiary shares due to the exit from the oil sands project in Canada*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

Impacts of the decision on Canada 2 projects
 Impact on financial results (recording of extraordinary losses)
Shale gas project in Canada - Sale of interest

Oil sand project in Canada - Sale of subsidiary shares

Subsidiary: JAPEX Montney Ltd.（JML）

Subsidiary: Japan Canada Oil Sands Limited（JACOS）

Accounts

period(Billion yen)Accounts

Loss on sale of interest

2Q FY3/22

Consolidated

Approx.
43.7 *

Loss on sale ofsubsidiary shares

2Q FY3/22

Consolidated

Approx.
90.0

Provision for allowancefor doubtful accounts ofsubsidiaries

FY3/21

Nonconsolidated

17.1

Loss on valuation ofsubsidiary shares

2Q FY3/22

Nonconsolidated

Approx.
80.0

Provision for loss on
guarantees

FY3/21

Nonconsolidated

22.8

Provision for loss on
guarantees

2Q FY3/22

Nonconsolidated

Approx.
10.0

period(Billion yen)*Approx. 497 million Canadian dollars, valued at the exchange rate as of June 30, 2021

■ Impact on Consolidated B/S and Reserves/Production Volume⁃ At the end of FY2022, the following balances related to consolidated subsidiaries JML and JACOS are expected to decrease, and the following
effects on reserves and production are also expected to occur.

Reference data: Ending balances or volumes as of March 2021

JML

JACOS

PP&E

54.2 bn.

121.2 bn.

Long-term borrowings
incl. current portion

55.7 bn.

55.6 bn.

JML

JACOS

Net Proved Reserves

70 MMBOE

83 MMBOE

Net Production Volume

9 MBOED

17 MBOED

BOE: Barrels of oil equivalent / BOED: Barrels of oil equivalent per day（Reference Disclosures）• “Ending our Promotion of the Oil Sands Project in Canada, the Change in Subsidiary, the Recognition of Extraordinary Losses, and the Voluntary Return of Executive Compensation”, on
July 29, 2021
• “Sale of Shale Gas Project Interest in Canada and Recording of Extraordinary Loss Related to the Project” on May 13, 2021
• “Notice Regarding Recording of Provision of Allowance for Doubtful Accounts in Extraordinary Loss in Non-consolidated Financial Results”, on March 10, 2021
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

5

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Three Months Ended June 30, 2021
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2022

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

6

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

Sales volume

1Q FY3/22 (a)Net sales

Sales volume

ChangeSales volume

Net sales

Net sales-

22,904-

16,796--(6,108)

(27%)

687

15,936

114

5,556

(572)

(83%)

(10,380)

(65%)

60

1,800

85

3,927

[1]

+25

+42%

+2,127

+118%

168

4,393

22

1,312

[2]

(146)

(87%)

(3,081)(70%)

Purchased crude oil

458

9,742

6

316

[3]

(451)

(99%)

(9,426)(97%)

Diluted bitumen*2

410

6,258

351

10,058

(59)

(14%)

[4] +3,800

+61%

111

709

128

1,181

+16

+15%

[5]

+471

+66%

-

E&P Business
Breakdown
Crude oil
Crude oil - Japan
Crude oil - Overseas*1

Natural Gas - Overseas*3

Thousand KL

Million M3

Main factors for change[1] Increase in sales price and volume[2] Decrease in sales volume of crude oil from Garraf Oil Field in Iraq
[3] Decrease in sales volume of purchased crude oil from SODECO due to application of the “Accounting Standard for Revenue Recognition[4] Increase in sales price of diluted bitumen from the Hangingstone Lease in Canada[5] Increase in sales price of shale gas 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.

7

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

Sales volume

1Q FY3/22 (a)Net sales

Sales volume

ChangeSales volume

Net sales-

20,997-23,009248

12,798233

10,709

109

-

123

Ton

53

3,597

Million kWh

448
-

-

Infrastructure & Utility BusinessNet sales--+2,012

+10%

(15)

(6%)

(2,088)

(16%)

-

+13

+13%

-

-

52

4,397

△0

(2%)

+800

+22%

3,493

765

7,163

[2] +316+71%+3,670

+105%

1,108

-

739

-

(369)

(33%)

Breakdown
Natural Gas - Japan- Produced in Japan

LNG
Electricity

Million M3
Thousand

Other*-[1]-Main factors for change[1] Decrease in sales volume and sales price[2] Increase in sales volume and price of electricity due to the Fukushima Natural Gas Power Plant operating for the full reporting period* Including net sales from commissioned regasification of LNG

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

8

FY3/22 Results (Year-on-Year)
1Q FY3/21 (a)Million Yen

1Q FY3/22 (a)ChangeNet sales

51,01850,083

(935)

(2%)

Gross profit

2,399

11,179+8,779+366%

Operating profit(5,250)3,400+8,650-Ordinary profit(9,575)

10,491+20,066-

Profit attributable to owners of parent(9,536)

7,106+16,642-

Oil Price, Exchange Rate and Sales Price
1Q FY3/21 (a)1Q FY3/22 (a)ChangeWTI

USD/bbl

45.10

58.10

+13.00

Crude oil price (CIF)

USD/bbl

44.41

64.25

+19.84

Exchange rate

JPY/USD

108.04108.43+0.39

JACOS Diluted bitumen＊1

USD/bbl

22.30

40.99

+18.69CAD/mcf

2.36

2.96

+0.60

JML Natural gas*2*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.

9

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

OP total

E&P-Overseas

(5.2)
3.4

Overseas : + 3.3 bn.

(4.3 bn.) →(4.3)

Domestic : + 1.5 bn.

2.3 bn. →I/U Business

2.3
3.9

+3.8 bn.

2.5

(2.0)

Others(4.0)

1Q FY3/21 (a)2.5 bn.

Others *

(2.0)

(6.0)

(1.2 bn.) →• Increase in sales volume of electricity due to the
Fukushima Natural Gas Power Plant operating for the fullreporting period• Increase in marginal gain on LNG procurement

(1.2)

I/U

3.9 bn.

Increase in profit due to a rise of crude oil prices•

E&P-Japan(1.0 bn.)

Improvement in diluted bitumen sales due to a rise of
crude oil prices

•

(1.0)

(8.0)

E&P Business

(2.0)

0.0

2.0

4.0

6.0

1Q FY3/22 (a)（2.0 bn.) →∗Operating income (contracting, oil products and commodities, andothers) not belonging to the above business units, less headquarters
administrative expenses* 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.

10(2.0 bn.）

Net Income Result (Year-on-Year)(Billion Yen)
JACOS
JML
Japex Garraf+2.6 bn.
+0.4 bn.
+0.2 bn.

SODECO

JML
Japex Garraf
JAPEX

Net
incomeE&P
overseas

E&P
Japan

I/U

FY3/21(a)
1Q

(4.3)

2.3

FY3/22(a)
1Q

(1.0)

3.9

+6.1 bn.
+2.1 bn.
+0.9 bn.

Non-operating income+11.4 bn.

Operating profit*+8.6 bn.

FY3/21
1Q (a)+1.3 bn.

OthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

2.1

(0.6)

(0)

0.1

(0.2)

3.5

(0.3)

(0)

2.8

0.5

OthersForeignexchange
gains and loss

Equity on
earnings

(1.2)

(2.0)

(5.8)

2.5

(2.0)

3.8

* 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.

11

Net
incomeFY3/22
1Q (a)

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Three Months Ended June 30, 2021
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2022

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

12

E&P Business Sales Forecasts (vs Initial Forecasts)
Initial (f) May 13, 2021
Net sales：Million Yen

Sales volume

Net sales

Revised (f) Aug. 10, 2021
Sales volume

Net sales

ChangeSales volume

Net sales-

70,034-71,444--+1,409+2%

Crude oil

818

32,397822

40,027+4+1%+7,630+24%

Crude oil - Japan

281

11,405285

13,628+3+1%[1] +2,223

+19%

512

19,928513

25,217+0+0%[2] +5,288

+27%

24

1,063

24

1,181

(0)

(1%)

+118

+11%

1,444

36,661

949

30,211[3] (494)(34%)(6,450)

(18%)

127

975

130

1,205

+2

+2%

+229

+24%

-

E&P Business
Breakdown

Crude oil - overseas*1

Thousand KL

Purchased crude oil

Diluted bitumen*2
Natural Gas - Overseas*3

Million M3

Main factors for change[1] Increase in sales price[2] Increase in sales price of crude oil from Garraf Oil Field in Iraq
[3] Decrease in sales volume for September onwards due to the exit of the oil sands project 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.

13

I/U Business Sales Forecasts (vs Initial Forecasts)
Initial (f) May 13, 2021
Net sales：Million Yen

Sales volume

Net sales

Revised (f) Aug. 10, 2021
Sales volume

ChangeNet sales

Sales volume

Net sales-

101,706-

108,899--+7,193+7%

1,018

48,194

1,026

51,510+7+1%[1] +3,316

+7%

491

-

491

-

+0

(0%)

-

-

Ton

310

20,061

301

21,487(8)(3%)[2] +1,425+7%Electricity

Million kWh

3,154

28,944

3,164

31,038+9+0%[3] +2,093+7%

Others*

-

-

4,505

-

4,863

-

-

+357

+8%

-

Infrastructure & Utility Business

Breakdown
Natural Gas - Japan- Produced in Japan

LNG

Million M3
Thousand

Main factors for change[1]-[3] Increase in sales price due to review of LNG price assumption* Including net sales from commissioned regasification of LNG

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14

FY3/22 Forecasts (vs Initial Forecasts)
Million Yen

Initial (f) May 13, 2021

Revised (f) Aug. 10, 2021

ChangeNet sales

211,153

220,789+9,635+5%Gross profit

40,03842,141+2,103+5%

Operating profit

8,215

11,894+3,678+45%

Ordinary profit

15,74026,159+10,418+66%(28,317)(114,021)(85,704)-

Profit attributable to owners of parent

Oil Price, Exchange Rate and Sales Price
Initial (f) May 13, 2021

Revised (f) Aug. 10, 2021

ChangeWTI

USD/bbl

54.74

64.38

+9.64

Crude oil price (CIF)

USD/bbl

60.00

68.28

+8.28

Exchange rate

JPY/USD

105.00108.12+3.12

USD/bbl

38.44

46.84

+8.40

CAD/mcf

2.68

2.96

+0.28

JACOS Diluted bitumen＊1

JML Natural gas*2*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.

15

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

8.2

OP total

Overseas : +3.0 bn.

(2.0 bn.) →0.9 bn.

Domestic : +4.1 bn.

11.2 bn. →15.3 bn.

•

11.8

(2.0)

E&P-Overseas

E&P Business

•
•

0.9

Improvement in diluted bitumen sales due to a rise of
crude oil prices

Increase in profit due to a rise of crude oil prices
Increase in the sales unit price* of natural gas related todomestic gas∗

11.2

E&P-Japan

15.3

I/U Business(3.7 bn.)

5.7

I/U

OthersInternal transaction price from E&P Business to I/U Business for theinternal control

2.0•

2.0 bn.

Decrease in marginal gain on LNG procurement(6.6)

Others*(6.4)(10.0)

5.7 bn. →

(5.0)

0.0

Initial (f) May 13, 2021

5.0

10.0

15.0

20.0

Revised (f) Aug. 10, 2021

+0.2 bn.
•∗

16(6.4 bn.）

Operating income (contracting, oil products and commodities, andothers) not belonging to the above business units, less headquarters
administrative expenses* 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.

（6.6 bn.) →Decrease in G&A expenses

Net Income Result (vs Initial Forecasts)(Billion Yen)

JACOS
Japex Garraf
JML+1.6 bn.
+0.9 bn.
+0.3 bn.

JML
Japex Garraf
JAPEX+2.0 bn.
+1.2 bn.
+0.7 bn.

SODECO+1.8 bn.

Losses on sale of JACOS‘ shares(90.0 bn.)
Losses on JML’s interests transfer(4.3 bn.)

Net
incomeNon-operating income+6.7 bn.

Operating profit*+3.6 bn.

OthersExtraordinary
incomeIncometaxes

Profitattributable
to noncontrollinginterest

8.2

(6.0)

(39.4)

4.5

0

10.1

(1.0)

(133.7)

5.4

0.8

OthersForeignexchange
gains andloss

Equity on
earnings

5.7

(6.6)

-

2.0

(6.4)

4.2

FY3/22 (f)May 13

E&P
overseas

E&P
Japan

I/U

FY3/22 (f)May 13

(2.0)

11.2

FY3/22 (f)Aug. 100.9

15.3* 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.

17

Net
incomeFY3/22 (f)Aug. 10

E&P Business Sales Forecasts (Year-on-Year)
FY3/22 Revised (f)FY3/21 (a)Net sales：Million Yen

Sales volume

Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

97,482-

71,444--(26,038)

(27%)

2,313

72,916822

40,027(1,490)(64%)(32,889)

(45%)

287

8,835

285

13,628(2)(1%)[1] +4,793

+54%

538

18,268513

25,217(25)(5%)[2] +6,948+38%

Purchased crude oil

1,486

45,81224

1,181[3] (1,462)(98%)(44,631)(97%)

Diluted bitumen*2

1,319

21,695949

30,211

(370)

(28%)

[4] +8,516

+39%

470

2,870

130

1,205

(340)

(72%)

(1,665)(58%)

E&P Business-

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

Natural Gas - Overseas

Thousand KL*3Million M3[5]

Main factors for change[1] Increase in sales price[2] Increase in sales price of crude oil from Garraf Oil Field in Iraq
[3] Decrease in sales volume of purchased crude oil from SODECO due to application of the “Accounting Standard for Revenue Recognition"[4] Increase in sales volume of diluted bitumen at the Hangingstone Lease in Canada[5] Decrease in sales volume due to the interests transfer of the Canadian shale gas project*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.

18

I/U Business Sales Forecasts (Year-on-Year)
FY3/22 Revised (f)FY3/21 (a)Net sales：Million Yen

Sales volume

Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales--+7,598

+8%

(156)

(13%)

+218

+0%

(36)

(7%)

-

-

-

101,301-

108,899

1,183

51,291

1,026

51,510

528

-

491

-

Ton

284

15,591

301

21,487

[2]

+17

+6%

+5,895+38%

Million kWh

3,016

30,0873,164

31,038

[3]

+147

+5%

+951

+3%

-

4,331

-

4,863

-

+531

+12%

-

Infrastructure & Utility Business

Breakdown
Natural Gas - Japan- Produced in Japan

Thousand

LNG
Electricity
OthersMillion M3

*

-

[1]

-

Main factors for change[1] Decrease in sales volume due to application of the “Accounting Standard for Revenue Recognition”, and sales volume related to the commissioning of
the Fukushima Natural Gas Power Plant in the FY3/21 / Increase in sales price[2] Increase in sales volume and price[3] Increase in sales volume of electricity due to the Fukushima Natural Gas Power Plant operating for the full reporting period* Including net sales from commissioned regasification of LNG

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

19

FY3/22 Forecasts (Year-on-Year)
Million Yen

FY3/21 (a)FY3/22 Revised (f)ChangeNet sales

240,078

220,789(19,288)(8%)

Gross profit

36,534

42,141

5,606

+15%

Operating profit

4,192

11,894

7,701

+184%

Ordinary profit

10,001

26,15916,157+162%

Profit attributable to owners of parent(2,725)(114,021)(111,295)-

Oil Price, Exchange Rate and Sales Price
FY3/22 Revised (f)FY3/21 (a)ChangeWTI

USD/bbl

40.87

64.38

+23.51

Crude oil price (CIF)

USD/bbl

42.91

68.28

+25.37

Exchange rate

JPY/USD

105.86108.12+2.26

JACOS Diluted bitumen＊1

USD/bbl

25.06

46.84

+21.78

CAD/mcf

2.14

2.96

+0.82

JML Natural gas*2*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.

20

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

4.1

OP total

E&P-Overseas

E&P Business
11.8

Overseas : +11.6 bn.

(10.7 bn.)→

0.9 bn.

Domestic : +6.9 bn.

8.4 bn.

→15.3 bn.

•(10.7)••

0.9

Improvement in in diluted bitumen sales due to a rise of
crude oil prices and improvement in WCS differential

Increase in profit due to a rise of crude oil prices
Increase in the sales unit price* of natural gas related todomestic gas∗

8.4

E&P-Japan

15.3

I/U Business(10.2 bn.)

12.2

I/U

OthersInternal transaction price from E&P Business to Infrastructure/Utilities
Business for the internal control

•

2.0

•

(5.7)

FY3/21 (a)→2.0 bn.

Others*(6.4)(15.0) (10.0) (5.0)

12.2 bn.

Reversal of transient gains due to the hike in the JEPX
spot market price in FY3/21
Decrease in marginal gain on LNG procurement

0.0

5.0

10.0

15.0

20.0

(0.6 bn.)•∗

FY3/22 Revised (f)21(6.4 bn.)

Operating income (contracting, oil products and commodities, andothers) not belonging to the above business units, less headquarters
administrative expenses* 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.

(5.7 bn.) →Decrease in profit of contract services and others

Net Income Result (Year-on-Year)(Billion Yen)

JACOS
JML
Japex Garraf

Japex Garraf
JML
JAPEX

+8.6 bn.
+1.7 bn.
+1.0 bn.

＋2.9 bn.
+0.9 bn.
+0.7 bn.

SODECO
DGN+3.7 bn.
+0.7 bn.

Losses on JML’s interests transfer
Losses on sale of JACOS' shares（FY3/21）Impairment losses（FY3/21）Disaster losses

Net
income(43.7 bn)(90.0 bn.)
＋16.3 bn.
＋0.9 bn.

Non-operating income+8.4 bn.

Operating profit*+7.7 bn.

OthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

5.8

0.6(17.3)

(1.9)

(2.6)

10.1

(1.0)

(133.7)

5.4

0.8

OthersForeignexchange
gains and loss

Equity on
earnings

12.2

(5.7)

(0.6)

2.0

(6.4)

4.2

FY3/21 (a)E&Poverseas

E&P
Japan

I/U

FY3/21 (a)(10.7)

8.4

FY3/22
Revised (f)

0.9

15.3

* 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.

22

Net
incomeFY3/22
Revised(f)Cash Flows and Debt
Million Yen

FY3/21 (a)FY3/22 (f)Full year

Full year
May 13

Cash flows from operating activities

Aug.1043,26334,91928,608Depreciation

22,59921,001

17,034

Recoverable cost (Recovery)

15,196

17,972

22,031

Cash flows from investing activities(6,453)(22,304)

9,629

Purchase of property, plant and equipment(15,153)(13,959)(14,223)

Recoverable cost (Payments)(14,971)(22,863)(23,417)

Cash flows from financing activities(15,626)(40,158)(82,142)

Cash and cash equivalents at end of period

157,963

130,420

114,059

Interest-bearing debt*1

118,71082,50064,858

EBITDA*2

37,15040,87044,705

3.2

2.0

1.5

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.

23

Appendix
1. Net Sales
2. Financial Results
3. Segment Profit
4. Price Assumptions for FY3/22 Forecasts
5. Sensitivities Analysis on FY3/22 Forecasts Basis
6. Main Business and Major Assets
7. Glossary

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

24Appendix

1. Net Sales - E&P Business
FY3/21Million Yen
1Q
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 Diluted bitumen (Thousand KL)
Net sales *2
Sales volume of Natural gas -overseas *3(Million M3)

FY3/22
Full year

1Q (a)

Full year (f)
5.13

8.10

22,904

97,482

16,79670,03471,444

687

2,313

114

818

822

15,936

72,916

5,556

32,39740,027

60

287

85

281

285

1,800

8,835

3,927

11,405

13,628

168

538

22

512

513

4,393

18,2681,312

19,92825,217

458

1,486

6

24

24

9,742

45,812

316

1,063

1,181

410

1,319

351

1,444

949

6,258

21,695

10,05836,661

30,211

111

470

128

127

130

Net sales

709

2,870

1,181

975

1,205

WTI（USD/bbl）

45.10

40.87

58.10

54.74

64.38

Crude oil price (CIF) (USD/bbl) *4

44.41

42.91

64.25

60.00

68.28

Exchange rate (JPY/USD) *4

108.04105.86108.43105.00108.12

Diluted bitumen *2 (USD/bbl)

22.30

25.06

40.99

38.44

46.84

JML natural gas *5 (CAD/mcf)

2.36

2.14

2.96

2.68

2.96

*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.)*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.

25

Appendix

1. Net Sales - I/U BusinessMillion Yen

FY3/21
1Q

Sales

FY3/22
Full year

1Q (a)

Full year (f)
5.13
8.10
101,706
108,899

20,997

101,301

23,009

248

1,183

233

1,018

1,026

12,79851,291

10,70948,19451,510

109

528

123

491

491

53

284

52

310

301

3,597

15,591

4,397

20,061

21,487

448

3,016

765

3,154

3,164

Net sales

3,493

30,087

7,163

28,94431,038Others*

1,108

4,331

739

4,505

4,863

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 the revenue from contracted transportation of natural gas and commissioned regasification of LNG

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

26

Appendix

2. Financial Results
Million Yen

FY3/21
1Q

Net sales

FY3/22
Full year

1Q (a)

Full year (f)
5.13

8.10

51,018240,078

50,083

211,153

220,789

E&P Business

22,904

97,482

16,79670,03471,444

Infrastructure/Utility Business

20,997

101,301

23,009101,706

108,899

7,116

41,294

10,27739,41240,445

Cost of sales

48,619203,543

38,904

171,115

178,647

Gross profit

2,399

36,534

11,17940,03842,141

206

989

132

784

680

SG&A expenses

7,443

31,352

7,647

31,03729,566

Operating profit(5,250)

4,192

3,400

8,215

11,894Non-operation income(4,325)

5,809

7,091

7,525

14,265Interest income

216

412

37

160

172

Interest expenses(972)(2,529)

(322)

(868)

(824)

OthersExploration expenses

Dividend income

49

2,823

48

2,994

3,635

2,116

5,808

3,549

8,210

10,129Provision for overseas investment

85

342

92

246

253

Foreign exchange gains and loss

(5,809)

(639)

3,851

-

4,274

(10)

(408)

(165)

(3,218)(3,376)(9,575)

10,001

10,491

15,74026,159(3)(17,324)(1)(39,460)(133,795)(9,578)(7,322)

10,489(23,719)(107,636)

173(1,923)

2,832

4,586

5,487

(215)

(2,673)

550

10

897

(9,536)(2,725)

7,106(28,317)(114,021)

Share of profit of entities accounted for using equity method

Other
Ordinary profit
Extraordinary income
Profit before income taxes
Income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

27

Appendix

3. Segment Profit
Million Yen

FY3/21

FY3/22
Full year

1Q

1Q (a)

Full year (f)
5.13

Japan

Operating profit
Share of profit of entities accounted forusing equity method

North America

Operating profit
Share of profit of entities accounted forusing equity method

EuropeOperating loss
Share of profit of entities accounted forusing equity method

Middle East

Operating profit (loss)
Share of profit of entities accounted forusing equity method

Others*1

Operating profit
Share of profit of entities accounted forusing equity method

Adjustments andEliminations*2
Amounts on consolidated
statement of income*3
*1
*2
*3

Operating profit

790

21,9886,122

17,964

18,403

157

(319)

19

(214)

(214)

(4,223)(9,374)(1,146)

(828)

1,279

-

-

-

-

-

(42)

(132)

(47)

(196)

(219)

-

-

-

-

-

301

165

537

336

1,255

(2)

(10)

(3)

(11)

(10)

-

-

-

-

-

1,961

6,138

3,534

8,436

10,354(2,075)(8,453)(2,066)(9,060)(8,825)(5,250)

4,192

3,400

8,215

11,894

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

28

8.10

Appendix

4. Price Assumptions for FY3/22 Forecasts
Upper: from January 2020 to March 2021
Full year

Lower: from January 2021 to March 2022
Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

2020 (a)

45.10

28.54

41.02

42.77

-

40.87

Revised (f)Aug. 10

58.10*1

66.06

71.49

-

-

64.38

2020 (a)

-

44.41

33.34

44.51

49.99

42.91

Revised (f)Aug. 10-64.25*1

70.00

70.00

70.00

68.28

2020 (a)-108.04106.88105.46104.03105.86

Revised (f)Aug. 10-108.43*1

108.00108.00108.00108.122020 (a)

22.30

11.29

29.77

31.25

-

25.06

Revised (f)Aug. 1040.99*1

49.74

51.23

-

-

46.84

2020 (a)

2.36

1.85

1.89

2.43

-

2.14

Revised (f)Aug. 102.96*1

-

-

-

-

2.96

Market Price
WTI

USD/bblCrude oil price (CIF) *2

USD/bblExchange rate*2

JPY/USD

Sales Price
JACOS
Diluted bitumen*3

JML
Natural gas*4

USD/bbl

CAD/mcf*1 Actual*2 Domestic sales price average of crude oil referring to crude oil (CIF) price and its conversion exchange rate
*3 Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*4 Natural Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

29

Appendix

5. Sensitivities Analysis on FY3/22 Forecasts Basis
Impacts on profit（Million Yen）

FY3/22
2Q-4Q
Assumptions

Fluctuation

Crude oil price

Crude oil price(CIF)
USD 70.00/bbl

Exchange rate

JPY 108.00/USD

Main factors for change
Increase factor “+”/ Decrease factor “( )”Operating profit

Profitattributable toowners of parent

Increase by
1USD/bbl

140

100+ Sales of oil and gas(Increase in LNG procurement cost)

1 weaker JPY
against USD

210

100

+ 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-currencydenominated 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.

30

Appendix

6. Overview: E&P Business (Japan/Overseas)
Updates on 1Q and afterJapan: Decided the additional development at Katakai oil and gas field in Niigata Prefecture in April.
Canada: Decided to sell our interest of the of the Shale Gas Project in May. *All procedures of this sale has completed by July.
Canada: Decided to end our promotion of the the Oil Sand Sands Project in July.

Current StatusJapan: Producing oil and natural gas at a total of 10 fields in Hokkaido, Akita, Yamagata and Niigata Prefectures /Considering the measures to increase production at existing oil and gas fields
Overseas: Participating in the projects of crude oil and natural gas development and production / Considering new
assets and interests acquisition[Major overseas E&P projects]
Segment

North
America
North
America
EuropeMiddle
East
Other
Areas
Other
Areas

Project Title (operator)

Canada: Oil Sands Project(Japan Canada Oil Sands Limited)

Canada: Shale gas project(Petronas Energy Canada Ltd.)UK North Sea: Seagull Project(Neptune E&P UK Limited)

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

Indonesia: Kangean Project(Kangean Energy Indonesia Ltd.)
Russia: Sakhalin 1 Project(Exxon Neftegas Ltd.)

Project company（JAPEX‘s share）

Canada Oil Sands Co., Ltd. (94.58%)

Interest（JAPEX net）

(1Q average)*1

75% (70.935%)

Production

Approx. 24,000bbl/ｄ

JAPEX Montney Ltd.(55%)

10% (5.5%)

Production/
Development*2

14,300,000M3/d
Approx. 84,000boe/dJAPEX UK E&P Ltd.(100％)15% (15％)

Development*3-

Japex Garraf Ltd. (55％)

30% (16.5%)

Production/
Development*4

Approx. 70,000bbl/dEnergi Mega Pratama Inc.(25％)

100％ (25%)

Production

Sakhalin Oil and Gas Development
Co., Ltd.(15.29％)

30% (4.59%)

Production/
Development*1：Decided to sell JACOS shares on July 29, 2021／*2：Decided to sell all working interests on May 13, 2021
*3：Production commencement is scheduled at the end of 2021 (Timing of achievement is unforeseeable due to COVID-19 pandemic situation)*4：The timing of achieving production target of 230,000 bbl/d is unforeseeable due to Covid-19 pandemic situation.
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Gross Production volume

Status31

4,960,000M3/d
Approx. 32,000boe/dUndisclosed

Appendix

6. Overview: I/U Business（Gas Supply and Electricity）
Updates on 1Q and afterParticipated in the public offering for the selection of business operators for offshore wind power generation off the coastof Noshiro City, Mitane Town and Oga City, Akita Prefecture in May.
JAPEX and Yamagata Gas signed a natural gas-based energy service provider agreement with Boehringer Ingelheim
Pharmaceuticals in June.

Current Status

Gas Supply: Stable supply of natural gas and LNG through our domestic gas supply network / Promoting gas sales
expansion including response to demand for fuel conversion- Soma LNG terminal in Fukushima Prefecture: Engaging the contract work of LNG vaporization and delivery of power generation

Electricity: Stable supply of electricity with low environmental impact generated by the power plants in operation /Considering new renewable energy projects

fuel to the adjacent Fukushima natural gas power plant[Power generation projects]
Type

Natural gas fired
Renewable Energy - Solar
Renewable Energy - Solar

Power plant (operator)

Fukushima Natural Gas Power Plant（Fukushima Gas Power Co., Ltd.）*1
Mega solar power generation
at Japex Hokkaido District Office
Yufutsu Solar Power Plant（Solar Power Tomakomai Co., Ltd.）*2

Share

Location

Capacity

Status33%

Shinchi Town, Soma County,
Fukushima

1,180,000kW

In operation

100%

Tomakomai City, Hokkaido

1,800kW

In operation

20%

Tomakomai City, Hokkaido

13,000kW

In operation*1 Operated and managed by Fukushima Gas Power Co., Ltd., invested 5 companies including JAPEX.
*2 Joint venture with Sumitomo Corporation Group[Projects under consideration]
 Under consideration for commercialization: Chofu Biomass Power Project Participating in the consortium: Noshiro, Mitane, and Oga offshore wind power generation project, Akita Central Offshore Wind
Power Generation Project, Offshore Wind Power Generation Project off Yuza Town
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

32

Appendix

6. Overview: New Business (environmentally friendly）
Updates on 1Q and afterFormulated “JAPEX2050” for the realization of a carbon-neutral society in 2050 in May.
Agreed with Mitsubishi Gas Chemical Company, Inc. to conduct a joint study on the feasibility of CO2 utilization businessaround Niigata area in May.
Agreed for joint feasibility study of CCUS project using joint crediting mechanism at Sukowati oil field in Indonesia in
June.
Started joint study regarding energy transportation and supply infrastructure with JFE Engineering to realize a carbonneutral society in June.

Current Status

Studying early practical application and commercialization of CCS (Carbon Dioxide Capture and Storage)/CCUS(Carbon Dioxide Capture, Utilization, and Storage)Considering collaboration and participation in carbon neutral businesses, with the potential for collaboration with
CCS/CCUS[Ongoing demonstration tests and study projects] Demonstration test in progress• Large-scale CCS demonstration test in Tomakomai City (JAPEX has invested and served technical supports for the operator,
Japan CCS Co., Ltd.) Business feasibility study and review in progress• Feasibility study on a carbon recycling project based in the Tomakomai Area
• Feasibility study on CO2-IOR at the Higashi-Niigata gas field (Joint study with Mitsubishi Gas Chemical Company, Inc., basedon the collaboration with CO2 emitted from their Niigata Plant)• Joint Study on Feasibility Evaluation of CCUS Project Utilizing Bilateral Credits in Sukowati Oil Field, Indonesia (With Pertamina
and LEMIGAS)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

33

Appendix

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

WTIWest Texas Intermediate■Main Subsidiaries and Affiliates
JACOS

Japex Canada Oil Sands Limited

Canada / Oil Sands Project

JML

JAPEX Montney Ltd.

Canada / Shale Gas Project

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

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 andthese 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 (FY3/22, for instance, means 12 months ending March 31, 2022)
・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 © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

35