Financial Results for the six months ended September 30, 2015
Support Material

INPEX CORPORATION
November 10, 2015

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 exploration, development andproduction
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
67 consolidated subsidiaries
Major subsidiaries

Country/region

Ownership

StageAccounting term

Japan Oil Development

UAE

100%

Production

March (provisionalsettlement 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

Australia

100%Development

December

INPEX Gas British Columbia Ltd.

Canada45.09%

Production/
Evaluation

December

OwnershipStage

Accounting term

20 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

62.245%Development

March (provisional
settlement of account)

Highlights of the Consolidated Financial Results
for the six months ended September 30, 2015
Apr.‐Sep. ’14
Net sales(Billions of yen)Apr.‐Sep. ‘15

Change%Change

663.1

567.0(96.1)(14.5%)

Crude oil sales

437.6

396.8

(40.7)(9.3%)Natural gas sales (including LPG)

216.7

163.3

(53.4)(24.7%)

8.6

6.8(1.8)(21.7%)

Operating income (Billions of yen)

346.7

246.7(99.9)(28.8%)

Ordinary income (Billions of yen)

368.4

258.8(109.6)(29.8%)Net income attributable toowners of parent (Billions of yen)

88.7

45.4

(43.2)(48.7%)Net income per share (Yen)

60.77

31.15(29.62)(48.7%)

OthersAverage number of INPEX shares issued and outstanding during the six months ended September 30, 2015: 1,460,357,200

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

106.5657.31(49.25)(46.2%)

Average exchange rate (¥/$)

103.01121.8818.87 yen

18.3% yendepreciation

depreciation

3

Crude Oil Sales
Apr.‐Sep. ‘14

Change%Change

Net sales (Billions of yen)

437.6

396.8

(40.7)(9.3%)

Sales volume (thousand bbl)

40,04857,80517,757

44.3%

Average unit price of overseas
production ($/bbl)

105.7556.52(49.23)(46.6%)

Average unit price of domesticproduction (¥/kl)

71,32547,043(24,282)(34.0%)

Average exchange rate (¥/$)

102.93121.3618.43 yendepreciation

17.9% yendepreciation%Change

Sales volume by region(thousand bbl)

Apr.‐Sep. ‘14

Apr.‐Sep. ‘15

ChangeJapan404(64.2 thousand kl)

290(46.2 thousand kl)(113)(‐18.0 thousand kl)(28.1%)

Asia/Oceania

5,683

6,837

1,154

20.3%

Eurasia (Europe/NIS )

5,538

6,028

491

8.9%

Middle East/Africa

28,40943,963

15,554

54.8%

Americas15687

672‐

40,04857,80517,757

44.3%

Total4Apr.‐Sep. ‘15

Natural Gas Sales (excluding LPG)
Apr.‐Sep. ‘14

ChangeApr.‐Sep. ‘15%Change

Net sales (Billions of yen)

205.8

157.7

(48.1)(23.4%)

Sales volume (million cf)

152,056

160,634

8,577

5.6%

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

12.78

7.23

(5.55)(43.4%)

Average unit price of domestic
sales (¥/m3)

57.14

54.72

(2.42)(4.2%)

Average exchange rate (¥/$)

102.56121.2318.67 yendepreciation

18.2% yendepreciation

Change%Change

Sales volume by region (million cf)

Apr.‐Sep. ’14Apr.‐Sep. ‘15

Japan

29,694(796 million m3*)

28,725(770 million m3*)

(969)(‐26 million m3*)

(3.3%)

Asia/Oceania

103,482

114,556

11,074

10.7%

Eurasia (Europe/NIS )

‐

‐

‐

‐

Middle East/Africa

‐

‐

‐

‐

Americas18,88017,353(1,528)(8.1%)

152,056

160,634

8,577

5.6%

Total
(FYI) LPG Sales
Apr.‐Sep. ‘145

Net sales (Billions of yen)

10.9

Apr.‐Sep. ‘15

Change5.5(5.3)%Change(49.2%)*1m3=41.8605MJ

Analysis of Net Sales Decrease(Billions of Yen)

1,000Crude Oil(293.9)

Natural Gas (including LPG)

(81.6)

202.7

900

Crude Oil

800+59.9

Natural Gas (including LPG) +18.6

700

78.6600(1.8)

500(375.5)

400
300

Crude Oil

663.1

+193.2Natural Gas (including LPG)

+9.4

567.0

200
10006

Net sales
Apr. ‐ Sep. ‘14

Increase inSales volume

Decrease in
Exchange rate
Unit price (Depreciation of yen)

Others

Net sales
Apr. ‐ Sep. ’15

Statement of Income(Billions of Yen)

Apr.‐Sep. ’14

Apr.‐Sep. ’15

Change%Change

Net sales

663.1

567.0(96.1)(14.5%)

Cost of sales

257.8

273.5

15.7

6.1%

Gross profit

405.3

293.4

(111.8)(27.6%)

Exploration expenses

15.5

4.0(11.4)(73.6%)

Selling, general andadministrative expenses

43.0

42.5

(0.4)

(1.1%)

Operating income

346.7

246.7

(99.9)(28.8%)

39.8

9.6

32.1%

Other income

30.1

Increase in sales volume : +202.7
Decrease in unit price :(375.5)
Exchange rate
(Depreciation of Yen) :+78.6
Others :(1.8)
Cost of sales for
Crude Oil :(Change)
Cost of sales for
Natural Gas* :(Change)* Including LPG

187.6+23.3
80.0(7.0)

Main factor :Gain on sales of marketable securities+6.8

Other expenses

8.4

27.8

19.3

230.1%

Ordinary income

368.4

258.8(109.6)(29.8%)

Total income taxes

277.9

219.5

(58.4)(21.0%)Net income (loss) attributable
to non‐controlling interests

1.7(6.1)(7.9)‐

Net income attributable toowners of parent

88.7

45.4

(43.2)(48.7%)

7

Main factor :Provision for allowance for recoverable
accounts under production sharing+13.1

Other Income/Expenses(Billions of Yen)

ChangeApr.‐Sep. ’15%ChangeOther income

30.1

39.8

9.6

32.1%

Interest income

5.3

4.2(1.0)(20.3%)

Dividend income

2.2

2.5

0.2

11.0%

Gain on sales of marketable securities

4.6

11.4

6.8

147.3%

Equity in earnings of affiliates

7.9

‐

(7.9)

‐

Foreign exchange gain

5.3

9.1

3.8

72.9%

Other

4.6

12.4

7.7

168.4%

Other expenses

8.4

27.8

19.3

230.1%

Interest expense

1.2

2.1

0.9

77.3%

‐

0.9

0.9

‐

Provision for allowance for recoverable accounts
under production sharing

4.9

18.0

13.1

267.6%

Provision for exploration projects

0.0

1.6

1.6‐Other

2.2

5.0

2.7

119.0%

Equity in losses of affiliates

8Apr.‐Sep. ’14

Analysis of Net Income Decrease(億円)(Billions of Yen)
350

202.7

300
250
200
150
100
50

58.4

88.7

78.60

(1.8)

‐100

9

5.0

45.4

0.4

‐50

‐150

7.9

(15.7)(3.3)(375.5)
Net income
attributableto ownersof parent
Apr. –Sep.
‘14

Increasein SalesvolumeDecrease in Exchange rate
Unit price (Depreciationof yen)
Net sales

OthersIncrease in Increase inCost ofExploration
sales
expenses andAllowance forexploration*

Net income
Decrease
OtherDecrease in Net income(loss)
attributableinincome
Incometo owners
SG&A and expenses tax payable attributable
to non‐controlling of parentinterests
Apr. –Sep.
‘15*Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects

Balance Sheet(Billions of yen)Mar. ’15

Sep. ’15

Change%Change

Current assets

1,342.4

959.8(382.5)(28.5%)

Tangible fixed assets

1,497.6

1,683.0

185.4

12.4%

Intangible assets

458.7

587.9

129.1

28.2%

Recoverable accounts underproduction sharing703.2

747.8

44.5

6.3%

Other

618.7

682.4

63.7

10.3%

Less allowance for recoverable
accounts under production sharing(121.7)(139.4)(17.7)

14.6%

Total assets

4,499.1

4,521.6

22.5

0.5%

Current liabilities

365.2

353.2

(12.0)(3.3%)

Long‐term liabilities

845.2

838.4

(6.7)

(0.8%)

3,288.7

3,330.0

41.3

1.3%

(Non‐controlling interests)

222.0

277.0

54.9

24.8%

Total liabilities and net assets

4,499.1

4,521.6

22.5

0.5%

Net assets per share (Yen)2,099.95

2,090.59(9.36)(0.4%)

Total net assets

10Available fund (Billions of yen)
769.0*Breakdown• Cash and deposits:
641.6• Long‐term time deposits :36.0• Marketable securities :73.2• Available investment securities :18.3*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’s
equity share 62.245%)(Billions of yen)
• Current assets :38.9• Fixed assets :2,517.4• Total assets:
2,556.3

Shareholders’ equity (Billions of yen)
Retained earnings :+32.3
Accumulated other comprehensive
income :(43.0)
・Unrealized holding gain on
securities: (26.3)
・Unrealized loss fromhedging instruments :+9.2
・Translation adjustments: (25.8)

Statement of Cash Flows(Billions of Yen)

Apr.‐Sep. ’14

Apr.‐Sep. ’15

Change%Change

Income before income taxes

368.4

258.8

(109.6)(29.8%)

Depreciation and amortization

25.6

35.1

9.4

37.0%

Recovery of recoverable accounts under production sharing (capital expenditures)

36.6

26.8(9.8)(26.8%)

Recoverable accounts under production sharing (operating expenditures)(33.1)(29.3)

3.7(11.4%)

Income taxes paid

(276.3)(226.7)49.6(18.0%)

Other

(2.0)

32.9

35.0

‐

Net cash provided by (used in) operating activities

119.2

97.6

(21.5)(18.1%)

Payments for time deposits/Proceeds from time deposits

175.7

257.9

82.2

46.8%

Payments for long‐term time deposits/Proceeds from long‐term time deposits(112.1)(63.8)

48.3(43.1%)

Payments for purchases of tangible fixed assets(228.0)(243.9)(15.9)

7.0%

Payments for purchases of marketable securities/investment securities and proceedsfrom sales of marketable securities/investment securities

113.0

124.2

11.2

9.9%

Investment in recoverable accounts under production sharing (capital expenditures)(38.6)(40.2)

(1.6)

4.2%

Long‐term loans made / Collection of long‐term loans receivable(2.0)(192.2)(190.2)‐

Payments for purchase of mining rights(17.8)(133.6)(115.7)‐Other(4.3)(21.4)(17.1)‐Net cash provided by (used in) investing activities(114.2)(313.1)(198.8)174.0%Net cash provided by (used in) financing activities

3.2

46.9

43.7

‐129.090.9(38.1)(29.5%)Cash and cash equivalents at end of the period11Differences between Consolidated Financial Forecasts andActual Results for the six months ended September 30, 2015
‐ Assumptions
1st half (Previous Forecasts)(August 7, 2015)
Crude oil price (Brent) (US$/bbl)

61.8

Exchange rate (yen/US$)

120.7(November 10, 2015)

1st half (Actual Results)

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

57.3

Exchange rate (yen/US$)

121.9‐ Differences between Consolidated Financial Forecasts and Actual Results for the six months ended September 30, 2015
Previous Forecasts(August 6, 2014)

12

Actual Results

Change% Change

Net Sales (billions of yen)

588.0

567.0

(21.0)(3.6%)

Operating income (billions of yen)

251.0

246.7

(4.3)

(1.7%)

Ordinary income (billions of yen)

255.0

258.8

3.8

1.5%

Net income attributable to owners ofparent (billions of yen)

40.0

45.4

5.4

13.5%

Revisions of Financial Forecastsfor the year ending March 31, 2016
‐ Assumptions
1st half

2nd half

Full year

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

61.8

60.0

60.9

Exchange rate (yen/US$)

120.7

120.0

120.4

(November 10, 2015)

1st half

2nd half

Full year

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

57.3※1

50.0

53.7

Exchange rate (yen/US$)

121.9※2

120.0

120.9

(August 7, 2015)*1 1st quarter (Actual) : US$ 63.5/bbl, 2nd quarter (Actual) : US$51.3/bbl*2 1st quarter (Actual) : ¥121.4/US$1, 2nd quarter (Actual) : ¥122.3/US$‐ Financial Forecasts for the year ending March 31, 2016
Previous forecasts(August 7, 2015)

Change% Change

1,181.0

1,069.0(112.0)(9.5%)

Operating income (billions of yen)

471.0

418.0

(53.0)(11.3%)

Ordinary income (billions of yen)

479.0

434.0

(45.0)(9.4%)Net income attributable to owners ofparent (billions of yen)

70.0

70.0

‐

‐

Net sales (billions of yen)

‐ Dividend per share
Year ending March 31, 2016 (yen)13

Revised forecasts(November 10, 2015)

End of fiscal year
(forecast)End of 2Q

99