Financial Results for the six months ended September 30, 2014
Support Material

INPEX CORPORATION
November 7, 2014

Cautionary Statement
This material includes forward‐looking information that reflects the plan andexpectations of the Company. Such forward‐looking information is based on thecurrent assumptions and judgments of the Company in light of the information
currently available to it, and involves known and unknown risk, uncertainties, andother factors. Such risks, uncertainties and other factors may cause the Company’sperformance, achievements or financial position to be materially different from anyfuture results, performance, achievements or financial position expressed or impliedby such forward‐looking information. Such risks, uncertainties and other factors
include, without limitation:
 Price volatility and change in demand in crude oil and natural gas
 Foreign exchange rate volatility
 Change in costs and other expenses pertaining to the exploration, developmentand production
The Company undertakes no obligation to publicly update or revise the disclosureof information in this material (including forward‐looking information) after thedate of this material.
1

Subsidiaries and Affiliates
66 consolidated subsidiaries
Major subsidiaries

Country/region

Ownership

StageAccounting term

Japan Oil Development

UAE100%

Production

March (provisional
settlement of account)

INPEX Natuna

Indonesia

100%

Production

March

INPEX Sahul

Timor Sea Joint Petroleum
Development Area

100%

Production

December

INPEX Ichthys Pty Ltd

Australia

100%

Development

March (provisional
settlement of account)

INPEX Southwest Caspian Sea

Azerbaijan

51%

Production

March (provisionalsettlement of account)

INPEX North Caspian Sea

Kazakhstan

45%(Productionsuspended)

March (provisional
settlement of account)

INPEX Oil & Gas Australia Pty Ltd

Australia100%

Development

December

INPEX Gas British Columbia Ltd.

Canada45.09%

Production/
Evaluation

December

OwnershipStage

Accounting term

19 equity method affiliates
Major affiliates

2Country/region

MI Berau B.V.

Indonesia

44%

Production

DecemberAngola Block 14 B.V.

Angola49.99%

Production/
Development

December

INPEX Offshore North Campos

Brazil

37.5%

Production

DecemberIchthys LNG Pty Ltd

Australia

66.07%Development

March (provisional
settlement of account)

Highlights of the Consolidated Financial Results
for the six months ended September 30, 2014
Apr.‐Sep. ’13

Apr.‐Sep. ’14

Change%Change

650.4

663.1

12.6

1.9%

Crude Oil Sales

426.7

437.6

10.8

2.5%

Natural Gas Sales (including LPG)

214.8

216.7

1.9

0.9%

8.8

8.6(0.1)(2.0%)

Operating Income (Billions of yen)

344.2

346.7

2.4

0.7%

Ordinary Income (Billions of yen)

350.6

368.4

17.8

5.1%

Net Income

80.0

88.7

8.6

10.8%

54.84

60.77

5.93

10.8%

Net Sales(Billions of yen)

Others(Billions of yen)

Net income per share (Yen) *Average number of shares issued and outstanding during the six months ended September 30, 2014(consolidated): 1,460,357,200

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

106.53106.560.03

0.0%

Average exchange rate (¥/$)

98.86

103.01

4.15 Yen

4.2% Yen

depreciation

depreciation*The company conducted a stock split at a ratio of 1:400 of common stock on October 1, 2013.
Net income per share is calculated based on the assumption that the stock split was conducted on April 1, 2013.

3

Crude Oil Sales
Apr.‐Sep. ‘13

Change%Change

Net Sales (Billions of yen)

426.7

437.6

10.8

2.5%

Sales volume (thousand bbl)

40,57840,048(530)(1.3%)

Average unit price of overseas
production ($/bbl)

106.21105.75(0.46)(0.4%)

Average unit price of domestic
production (¥/kl)

66,87871,325

4,447

6.6%

Average exchange rate (¥/$)

98.86

102.934.07 Yen
depreciation

4.1% Yen
depreciation

Change%Change

Sales volume by region(thousand bbl)

Apr.‐Sep. ‘13

Apr.‐Sep. ‘14Japan383(61 thousand kl)

404(64 thousand kl)

21(+3 thousand kl)

5.4%

Asia/Oceania

6,552

5,683(868)(13.3%)

Eurasia (Europe/NIS)

4,978

5,538

560

11.2%

Middle East/Africa

28,64428,409(235)(0.8%)

Americas2115(7)(30.4%)

40,57840,048(530)(1.3%)

Total
4

Apr.‐Sep. ‘14

Natural Gas Sales (excluding LPG)
Apr.‐Sep. ‘13

Apr.‐Sep. ‘14

Change%Change

Net Sales (Billions of yen)

203.9

205.8

1.8

0.9%

Sales volume (million cf)

159,671

152,056(7,614)(4.8%)

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

12.83

12.78

(0.05)(0.4%)

Average unit price of domestic
sales (¥/ m3)

49.68

57.14

7.46

15.0%

Average exchange rate (¥/$)

98.60

102.56

3.96Yendepreciation

4.0% Yen
depreciation

Sales volume by region(million cf)

Apr.‐Sep. ’13

Apr.‐Sep. ’14

29,395(788 million m3*)
Purchased Volume
260 million m3*

29,694(796 million m3*)
Purchased Volume
215 million m3*

299(+8 million m3*)

1.0%

(45 million m3*)

(17.2%)

Asia/Oceania

110,432

103,482(6,950)(6.3%)

Eurasia (Europe/NIS)‐‐‐‐

Middle East/Africa‐‐‐‐

Americas19,844

18,880(963)(4.9%)

159,671

152,056(7,614)(4.8%)

JapanTotal

Change%Change* 41.8605MJ / 1m3(FYI) LPG Sales
Apr.‐Sep. ‘135

Net Sales (Billions of yen)

10.8

Apr.‐Sep. ‘1410.9

Change%Change
0.00.8%Analysis of Net Sales Increase(Billions of Yen)

700

Crude Oil
(5.5)
Natural Gas (including LPG) (10.3)

4.9

23.8(0.1)(15.9)

600

Crude Oil+17.1
Natural Gas (including LPG) +6.6

500
400
300

Crude Oil
(0.7)
Natural Gas (including LPG) +5.6

650.4

663.1

200
1000
Net Sales
Apr.‐Sep.‘136

Decrease inSales Volume

Increase inUnit Price

Exchange rate
(Depreciation of Yen)

OthersNet Sales
Apr.‐Sep. ’14

Statement of Income(Billions of Yen)

Apr.‐Sep. ’13

Apr.‐Sep. ’14

Change%Change

Net Sales

650.4

663.1

12.6

1.9%

Cost of Sales

249.2

257.8

8.5

3.4%

Exploration expenses

16.6

15.5

(1.1)

(7.0%)

Selling, general andadministrative expenses

40.3

Operating Income

344.2

346.7

2.4

0.7%

Other income

18.3

30.1

11.8

64.3%

Other expenses

11.9

8.4

(3.5)

(29.6%)

43.0

2.7

6.8%

Crude Oil sales :437.6(Change)+10.8

Natural Gas sales* :216.7(Change)+1.9Cost of sales for
Crude Oil :164.2(Change)+18.2

Cost of sales for
Natural Gas* :87.1(Change)(9.9)

Main Factors for change;
Equity in earnings of affiliates +7.9

Ordinary Income

350.6

368.4

17.8

5.1%

Income taxes‐current

227.7

278.3

50.5

22.2%

Income taxes‐deferred

42.5

(0.3)

(42.9)‐

Minority interests

0.2

1.7

1.5

‐Net Income

80.0

88.7

8.6

10.8%

＊Including LPG

7Foreign exchange gain+5.3

Main Factors for change;
Equity in losses of affiliates
Foreign exchange loss

(3.4)
(1.2)

Other Income/Expenses(Billions of Yen)

8

Apr.‐Sep. ’13

Apr.‐Sep. ’14

Change%Change

Other income

18.3

30.1

11.8

64.3%

Interest income

8.7

5.3

(3.3)

(38.7%)

Dividend income

2.1

2.2

0.0

2.8%

Equity in earnings of affiliates

‐

7.9

7.9

‐

Foreign exchange gain

‐

5.3

5.3

‐

Other

7.3

9.2

1.8

25.4%

Other expenses

11.9

8.4

(3.5)

(29.6%)

Interest expense

1.1

1.2

0.0

8.2%

Equity in losses of affiliates

3.4

‐

(3.4)

(100.0%)

Provision for allowance for recoverable
accounts under production sharing

0.44.94.4‐Provision for exploration projects

0.60.0(0.6)(99.8%)

Foreign exchange loss

1.2‐(1.2)(100.0%)

Other5.02.2(2.7)(55.0%)

Analysis of Net Income Increase
Main Factors;(Billions of Yen)

‐ Equity in earnings of affiliates +11.4‐ Foreign exchange gain+6.5

120
100

19.2

23.8
(0.1)

80
4.9
60
40(8.5)

(7.6)
(2.6)

(1.5)

(2.7)

(15.9)
88.7

80.0200
Net Income Decrease in Increase in Exchange Rate Others
Apr.‐Sep.’13 Sales Volume Unit Price (Depreciationof Yen)

Increase in
Cost ofSales

Increase in Increase in Other Income Increase in Increase in Net Income
Exploration
SG&A and Expenses Income Minority Apr.‐Sep. ‘14
Expenses andTax
Interest
Allowance forpayableExploration*

Net Sales*Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects

9Balance Sheet(Billions of yen)
Current assets

Mar. ’14

Sep. ’14

Change%Change

1,140.2

1,285.0

144.8

12.7%

Tangible fixed assets

951.7

1,183.5

231.7

24.3%

Intangible assets

439.1

438.6

(0.5)

(0.1%)

Recoverable accounts underproduction sharing

685.9

720.6

34.6

5.1%

Other

944.4

726.0

(218.4)(23.1%)

Less allowance for recoverable
accounts under production sharing(123.4)(130.2)

(6.7)

5.4%

Total assets

4,038.1

4,223.7

185.6

4.6%

Current liabilities

375.6

385.8

10.1

2.7%

Long‐term liabilities

666.4

716.2

49.8

7.5%

2,996.0

3,121.6

125.6

4.2%

204.9

215.5

10.6

5.2%

Total liabilities and net assets

4,038.1

4,223.7

185.6

4.6%

Net assets per share (Yen) **1,911.25

1,989.98

78.73

4.1%Total net assets(Minority interests)**The company conducted a stock split at a ratio of 1:400 of common stock on October 1, 2013.
Net assets per share is calculated based on the assumption that the stock split was conducted on April 1, 2013.

10Available fund (Billions of yen)
1,350.4*
Breakdown• Cash and deposits:775.3• Long‐term time deposits : 247.4• Marketable securities :191.4• Available investment securities :136.0*Amounts to be allocated for theinvestments for development andexploration activities until the year
ending March 31, 2017 following the“Medium‐ To Long–Term Vision ofINPEX”.

Summary of financial information
for Ichthys downstream JV (100%basis, including the Company’sequity share 66.07%)• Current assets :• Fixed assets :• Total assets:

35.6
1,716.3
1,752.0

Shareholders’ equity
Retained earnings :+75.8
Accumulated other comprehensive
income :+39.1
・Unrealized holding gain on
securities:(0.0)
・Unrealized loss fromhedging instruments :(8.1)
・Translation adjustments: +47.3

Statement of Cash Flows(Billions of Yen)

Apr.‐Sep. ’13

Apr.‐Sep. ’14

Change%Change

Income before income taxes and minority interests

350.6

368.4

17.8

5.1%

Depreciation and amortization

23.9

25.6

1.6

7.0%

Recovery of recoverable accounts under production
sharing (capital expenditures)

30.9

36.6

5.7

18.6%

Recoverable accounts under production sharing (operating expenditures)(20.9)(33.1)(12.2)

58.4%

Income taxes paid

(290.7)(276.3)14.4(5.0%)

Other(22.6)

(2.0)

20.5

(90.8%)Net cash provided by operating activities

71.2

119.2

48.0

67.4%

Payments for / Proceeds from time deposits and long‐term time deposits(253.0)

63.5

316.5

‐

Purchase of tangible fixed assets(139.1)(228.0)(88.8)

63.9%

Purchases of marketable securities/investment securities andproceeds from sales of marketable securities/investment securities

231.8

113.0

(118.8)(51.2%)

Investment in recoverable accounts under production
sharing (capital expenditures)(53.7)(38.6)

15.1(28.1%)

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

57.0

(2.0)

(59.0)‐

Payments for purchase of mining rights(27.0)(17.8)

9.2(34.0%)

Other(4.3)

(4.3)

0.0

(1.1%)(188.4)(114.2)

74.2(39.4%)Net cash provided by financing activities

25.3

3.2

(22.1)(87.2%)Cash and cash equivalents at end of the period

156.0

129.0

(26.9)(17.3%)Net cash used in investing activities

11Differences between Consolidated Financial Forecasts andActual Results for the six months ended September 30, 2014
‐ Assumptions
1st half (Previous Forecasts)(August 6, 2014)
Crude oil price (Brent) (US$/bbl)

107.4

Exchange rate (yen/US$)

101.1(November 7, 2014)

1st half (Actual Results)

Crude oil price (Brent) (US$/bbl)

106.6

Exchange rate (yen/US$)

103.0‐ Differences between Consolidated Financial Forecasts and Actual Results for the six months ended September 30,2014
Previous Forecasts(August 6, 2014)

12

Actual Results

Change% Change

Net Sales (billions of yen)

658.0

663.1

5.1

0.8%

Operating income (billions of yen)

330.0

346.7

16.7

5.1%

Ordinary income (billions of yen)

354.0

368.4

14.4

4.1%

Net income (billions of yen)

90.0

88.7

(1.3)

(1.4%)

Revisions of Financial Forecasts
for the year ending March 31, 2015
‐ Assumptions
1st half

2nd half

Full year

Crude oil price (Brent) (US$/bbl)

107.4

105.0

106.2

Exchange rate (yen/US$)

101.1

100.0

100.5

(November 7, 2014)

1st half

2nd half

Full year

Crude oil price (Brent) (US$/bbl)

106.6*1

85.0

95.8

Exchange rate (yen/US$)

103.0*2

110.0

106.5

(August 6, 2014)*1 1st quarter (Actual) : US$ 109.8/bbl, 2nd quarter (Actual) : US$103.5/bbl*2 1st quarter (Actual) : ¥102.2/US$1, 2nd quarter (Actual) : ¥103.8/US$‐ Financial Forecasts for the year ending March 31, 2015
Previous forecasts(August 6, 2014)

Change% Change

1,316.0

1,262.0(54.0)(4.1%)

Operating income (billions of yen)

635.0

592.0

(43.0)(6.8%)

Ordinary income (billions of yen)

701.0

656.0

(45.0)(6.4%)Net income (billions of yen)

178.0

160.0

(18.0)(10.1%)Net Sales (billions of yen)

‐ Dividend per share
Year ending March 31, 2015 (yen)13

Revised forecasts(November 7, 2014)

End of fiscal year
(forecast)End of 2Q

99