Financial Result for the year ended
December 31, 2019 Support Material

INPEX CORPORATION
February 12, 2020

Cautionary Statement
This presentation includes forward‐looking information that reflects the plans
and expectations of the Company. Such forward‐looking information is basedon the current assumptions and judgments of the Company in light of theinformation currently available to it, and involves known and unknown risks,
uncertainties, and other factors. Such risks, uncertainties and other factors may
cause the Company’s performance, achievements or financial position to bematerially different from any future results, performance, achievements orfinancial position expressed or implied by 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
and production
The Company undertakes no obligation to publicly update or revise thedisclosure of information in this presentation (including forward‐looking
information) after the date of this presentation.

Copyright © 2020 INPEX CORPORATION. All rights reserved.

1

Highlights of the Consolidated Financial Results
for the year ended December 31, 2019

Net sales

FY2018FY2019Adjusted actual

Apr. ‐ Dec. ’19(Billions of yen)

Change%Change

800.1

1,000.0

199.8

25.0%

Crude oil sales

675.1

764.0

88.8

13.2%

Natural gas sales (including LPG)

112.7

223.0

110.3

97.8%

Others

12.2

12.8

0.6

5.0%

Operating income (Billions of yen)

413.6

498.6

84.9

20.5%

Ordinary income (Billions of yen)

445.6

511.0

65.4

14.7%

Net income attributable toowners of parent (Billions of yen)

52.3

123.5

71.2

136.1%Net income per share (Yen)

35.84

84.61

48.77

136.1%(8.86)(12.1%)

2.49yen

2.2%

appreciation

appreciation

Average number of INPEX shares issued and outstanding during the year ended December 31, 2019: 1,460,200,987

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

73.13

64.27

Average exchange rate (¥/$)

111.15108.66

Copyright © 2020 INPEX CORPORATION. All rights reserved.

2

Crude Oil Sales
FY2018FY2019Adjusted actual

Apr. ‐ Dec. ’19

Net sales (Billions of yen)

675.1

764.0

88.8

13.2%

Sales volume (thousand bbl)

85,138106,950

21,812

25.6%

Average unit price of overseas
production ($/bbl)

71.56

65.61

(5.95)(8.3%)

Average unit price of domestic
production (¥/kl)

54,27345,936(8,337)(15.4%)

Average exchange rate (¥/$)

110.76108.88

1.88yenappreciation

1.7%
appreciation

Change%Change

FY2018

Sales volume by region(thousand bbl)

FY2019Change%Change

Adjusted actual589

Apr. ‐ Dec. ’19499(93.6 thousand kl)(79.4 thousand kl)(‐14.2 thousand kl)

Asia & Oceania

3,278

14,008

10,730327.3%

Eurasia (Europe & NIS)

11,167

11,272105

0.9%

Middle East & Africa

69,175

79,147

9,972

14.4%

Americas

930

2,024

1,094

117.7%

85,138106,950

21,812

25.6%

Japan

Total

Copyright © 2020 INPEX CORPORATION. All rights reserved.

(89)(15.1%)

3

Natural Gas Sales (excluding LPG)
FY2018FY2019Adjusted actual

Apr. ‐ Dec. ’19

Net sales (Billions of yen)

111.5

219.9

108.4

97.2%

Sales volume (million cf)

157,925

345,182

187,257

118.6%

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

2.94

4.45

1.51

51.4%

Average unit price of domestic sales(¥/m3)

51.65

53.27

1.62

3.1%

Average exchange rate (¥/$)

109.85108.63

1.22yenappreciation

1.1%
appreciation

Change%ChangeChange%Change

FY2018FY2019Adjusted actual

Apr. ‐ Dec. ’19

Asia & Oceania

57,097(1,530million ㎥*)
58,181

56,242(1,507million ㎥*)
262,903△ 855(‐23million ㎥*)
204,723351.9%

Eurasia (Europe & NIS)

7,424

6,720

(704)

(9.5%)

Middle East & Africa

‐

‐

‐

‐

Americas35,223

19,317(15,906)(45.2%)

157,925

345,182

187,257

Sales volume by region (million cf)
Japan

Total

(1.5%)

118.6%*1m3=41.8605MJ

Copyright © 2020 INPEX CORPORATION. All rights reserved.

4

Analysis of Net Sales Increase(Billions of Yen)

1,200

233.5

Crude Oil

(70.7)

Crude Oil(13.1)Natural Gas (including LPG)

+51.2

Natural Gas (including LPG)

(1.6)

0.6

1,000

(19.5)(14.8)

800

600

Crude Oil

+172.8Natural Gas (including LPG)

+60.7

1,000.0
400

800.1

200

0

Net Sales
FY2018Adjusted actual

Increase inSales Volume

Copyright © 2020 INPEX CORPORATION. All rights reserved.

Decrease in
Unit Price

Exchange rate

OthersNet Sales
Apr. ‐ Sep. ’19
5

Statement of Income
Increase in sales volume :FY2018FY2019Adjusted actual

Apr. ‐ Dec. ’19

Net sales

800.1

Cost of sales
Gross profit(Billions of Yen)

Change%Change

1,000.0

199.8

25.0%

326.8

424.7

97.8

29.9%

473.3

575.3

101.9

21.5%

Exploration expenses

3.5

15.4

11.9

338.5%

Selling, general andadministrative expenses

56.1

61.2

5.0

9.1%

Operating income

413.6

498.6

84.9

20.5%

Other income

52.3

44.7

(7.5)

(14.4%)

Other expenses

20.3

32.3

12.0

59.2%

Ordinary income

445.6

511.0

65.4

14.7%

Extraordinary loss
(Impairment loss)

19.7

0.7

(18.9)(96.0%)

Total income taxes

363.7

385.7

21.9

6.0%

Net income (loss) attributable
to non‐controlling interests

9.8

1.0

(8.8)

(89.7%)Net income attributable toowners of parent

52.3

123.5

71.2

136.1%

Decrease in unit price :Exchange rate:
Others :+233.5(19.5)(14.8)+0.6

Cost of sales for
Crude Oil :(Change)
Cost of sales for
Natural Gas* :(Change)* Including LPG

297.7
+46.0
117.3
+51.0

Main factors for change :Compensation income(7.5)

Equity in earnings of affiliates+8.3

Interest income(4.4)

Main factor for change :Interest expense+10.4

Copyright © 2020 INPEX CORPORATION. All rights reserved.

6

Other Income/Expenses(Billions of Yen)FY2018Adjusted actual

FY2019Apr. ‐ Dec. ’19

Change%Change

Other income

52.3

44.7

(7.5)

(14.4%)

Interest income

6.8

2.4

(4.4)

(64.9%)

Dividend income

2.4

3.2

0.8

34.2%

‐

4.9

4.9

‐

Equity in earnings of affiliates

15.0

23.3

8.3

55.4%

Compensation income

7.5

‐

(7.5)

(100.0%)Foreign exchange gain

3.6

2.4

(1.1)

(31.3%)

Other

16.8

8.3

(8.5)

(50.6%)

Other expenses

20.3

32.3

12.0

59.2%

Interest expense

11.4

21.8

10.4

91.3%

Provision for allowance for recoverable accounts under
production sharing

2.8

3.1

0.2

8.1%

‐

3.4

3.4

‐

5.9

3.8

(2.1)

(35.8%)

Gain on sales of investment securities

Loss on valuation of investment securities
Other
Copyright © 2020 INPEX CORPORATION. All rights reserved.

7

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

233.5

300

0.6

(19.5)

250(14.8)

200

150(97.8) (12.1)

18.9

8.8

(5.0)
(19.3)

100

123.5(21.9)

52.3
500

Net income
Increase
attributable
in Salesto owners
volumeof parent
FY2018Adjusted Actual

Decrease in Exchange rate
Unit price

OthersIncrease in Increase in
Exploration
Cost ofexpenses andsales
Allowance for
exploration*

Increasein
SG&A

Net Sales

Net income
Extraordinary Increase in Net income
Other
attributable(loss)
loss
incomeincometo owners
and expenses (Impairment tax payable attributable
to non‐controlling of parent
loss)
Apr. –
interests
Dec. ‘19*Provision for allowance for recoverable accounts under production sharing

Copyright © 2020 INPEX CORPORATION. All rights reserved.

8

Balance Sheet(Billions of yen)
Current assets

Mar. ’19

Dec. ’19

Change%Change

457.7

419.8

(37.9)(8.3%)

2,278.9

2,275.3(3.6)(0.2%)

Intangible assets

520.2

535.3

15.1

2.9%

Recoverable accounts under
production sharing

568.0

568.3

0.3

0.1%

Other

1,038.5

1,118.0

79.4

7.6%

Less allowance for recoverable
accounts under production sharing(70.0)(66.8)

3.1(4.5%)

Total assets

4,793.5

4,849.9

56.4

1.2%

Current liabilities

372.0

401.4

29.4

7.9%

Long‐term liabilities

1,163.9

1,151.3(12.6)(1.1%)

Total net assets

3,257.5

3,297.1

39.5

1.2%

(Non‐controlling interests)

251.1

256.4

5.2

2.1%

Total liabilities and net assets

4,793.5

4,849.9

56.4

1.2%

Net assets per share (Yen)

2,058.95

2,082.43

23.48

1.1%

Tangible fixed assets

Copyright © 2020 INPEX CORPORATION. All rights reserved.

Summary of financial information
for Ichthys downstream JV (100%basis, including the Company’s
equity share 66.245%)(Billions of yen)
• Current assets : 130.4• Fixed assets : 3,720.0• Total assets:
3,850.4※Fixed assets include interest
expense which are not included in
CAPEX, and capitalized costs before
FID.

The total of long‐term loans and shortterm loans is 1.1trillion yen.
Adding the off‐balanced net loans of
the Ichthys IJV(as of Dec. 2019) brings
the total of INPEX net loans to be 2.3
trillion yen (Dec., 2019).

Total shareholders’ equity ： +84.9
Accumulated other comprehensive
income (Billions of yen) : (50.6)• Unrealized gain (loss) fromhedging instruments : (24.4)• Translation adjustments : (28.8)

9

Statement of Cash Flows
Reference(Billions of Yen)

Apr. ‐ Dec. ’19

Apr.’18 – Mar. ’19

Income before income taxes

510.2

494.0

Depreciation and amortization

135.6

106.8

Impairment loss

0.7

25.2

Recovery of recoverable accounts under production sharing (capital expenditures)

32.2

33.1

Recoverable accounts under production sharing (operating expenditures)

(5.4)

4.6

Income taxes paid

(337.4)(388.0)Other(61.3)(37.2)Net cash provided by (used in) operating activities

274.7

238.5

Payments for purchases of tangible fixed assets(109.7)(210.7)

Payments for purchases of investment securities / Proceeds from sales of investment securities

2.1(104.7)

Investment in recoverable accounts under production sharing (capital expenditures)(36.6)(31.6)

Long‐term loans made / Collection of long‐term loans receivable(108.4)(262.4)

Payments for purchases of mining rights(35.8)(107.8)

Other

(0.1)

35.3

Net cash provided by (used in) investing activities(288.7)(682.0)Net cash provided by (used in) financing activities(48.6)

405.1

Cash and cash equivalents at end of the period

173.7

239.6

Copyright © 2020 INPEX CORPORATION. All rights reserved.

10

Financial Indices
Equity Ratio**

Net Debt/Total Capital Employed (Net)*

22.3%
21.7%

FY ended Mar. ʹ19

FY ended Dec.ʹ19

62.7%

62.7%

FY ended Mar.ʹ19

FY ended Dec.ʹ19

D/E Ratio***
*
**
***

38.0%

36.8%

FY ended Mar.ʹ19

FY ended Dec.ʹ19

Copyright © 2020 INPEX CORPORATION. All rights reserved.

Net Debt/Total Capital Employed (Net) = (Interest‐bearing debt ‐ Cashand deposits/(Net assets + Interest‐bearing debt ‐ Cash and deposits)
Equity Ratio = (Net assets ‐ Non‐controlling interests)/Total assets
D/E Ratio = Interest‐bearing debt/ (Net asset ‐ Non‐controllinginterests)

11

Consolidated Financial Forecasts for the year ending
December 31, 2020
1st Half (Jan. – Jun. ‘20)

2nd Half (Jul. – Dec. ‘20)

Full year

Brent oil price ($/bbl)

60.0

60.0

60.0

Average exchange rate (¥/$)

110.0

110.0

110.0

Full YearNet Sales (Billions of yen)Dec. ‘19

Dec. ‘19

Dec. ‘20(Actual)(Adjusted actual*)(Forecasts)

Change%Change1,000.0

1,171.2

1,204.0

32.8

2.8%

Operating Income (Billions of yen)

498.6

559.2

499.0

(60.2)(10.8%)

Ordinary Income (Billions of yen)

511.0

584.6

536.0

(48.6)(8.3%)Net income attributable to owners ofparent (Billions of yen)

123.5

167.3

145.0

(22.3)(13.3%)Net Sales (Billions of yen)

575.2

563.1

606.0

42.9

7.6%

Operating Income (Billions of yen)

280.7

269.1

257.0

(12.1)(4.5%)

Ordinary Income (Billions of yen)

271.1

270.7

272.0

1.3

0.5%

Net income attributable to owners ofparent (Billions of yen)

69.4

82.4

70.0

(12.4)(15.1%)

1st Half

Cash dividends
per share (yen)

2Q End12.0

18.0

FY End

18.0

18.0

TOTAL

30.0

36.0

* As FY2019 (nine‐month period ending December 2019) is an irregular fiscal year, FY2019 (ended December 2019) has been adjusted to the twelve‐month accounting period(Figures for 1st half has been adjusted to the accounting period from January to June 2019).
FY 2020 dividend reference dates are June 30, 2020 for the mid‐term dividend and December 31, 2020 for the year‐end dividend.

Copyright © 2020 INPEX CORPORATION. All rights reserved.

12

Sales and Investment Plan for the year ending
December 31, 2020
Dec. ’19

Dec. ‘19(Actual)(Adjusted actual )*Dec. ’20%
ChangeChange(Forecasts )Sales Volume

Crude oil (thousand bbl)1

106,950

122,315

128,712

6,397

5.2%

Natural gas (million cf)2

345,182

420,109493,81573,70717.5%

288,940

340,034

410,601

70,56820.8%

OverseasJapan

56,24280,075

83,214

3,139(1,507 million m3)(2,145 million m3)(2,229 million m3)(84 million m3)

412

412

570

158

LPG (thousand bbl)3(Billions of yen)Dec. ’19

Dec. ‘19(Actual)(Adjusted actual )*Dec. ’20

38.3%%
ChangeChange(Forecasts )3.9%

Development expenditureand others4

221.7

322.2

268.0

(54.2)(16.8%)

Exploration expenditure

18.8

26.0

30.0

4.0

15.4%

Other expenditure

2.7

3.5

3.0

(0.5)

(14.3%)

Exploration expenses andProvision for explorations5(Non‐controlling Interests
Portion)6

Exploration expenses 15.4

Exploration expenses 23.5

Exploration expenses 25.5

Provision for explorations 18.5
3.1

Provision for explorations 25.5
1.9

Provision for explorations 30.1
4.5

4.6

18.0%

3.0

3.3

7.9

4.6

139.4%

Note 1 CF for domestic crude oil sales and petroleum products : 1kl=6.29bbl
2 CF for domestic natural gas sales : 1m3=37.32cf
3 CF for domestic LPG sales : 1t=10.5bbl
4 Includes Ichthys downstream and asset acquisition expenditures
5 “Provision for allowance for recoverable accounts under production sharing” + ”Provision for exploration projects”, relating to exploration activities
6 Capital increase from Non‐controlling interests, etc.
* As FY2019 (nine‐month period ending December 2019) is an irregular fiscal year, FY2019 (ended December 2019) has been adjusted to the twelve‐month accounting period. See slide 15 for details.

Copyright © 2020 INPEX CORPORATION. All rights reserved.

13

Net Income Sensitivities
 Sensitivities of crude oil price and foreign exchange fluctuation on
consolidated net income attributable to owners of parent for the year ending
December 31, 2020 (Note 1)(Billions of yen)
At the Beginning of the 1Q : +6.5 (‐6.5)

 Brent Crude Oil Price;$1/bbl increase (decrease) (Note 2)

The impact on net income will change in FY2020 as below;
At the beginning of the 2Q : +4.5 (‐4.5)
At the beginning of the 3Q : +2.5 (‐2.5)
At the beginning of the 4Q : +1.0 (‐1.0)

 Exchange Rate; ¥1 depreciation(appreciation) against the U.S.
dollar (Note 3)+2.2 (‐2.2)(Note1) The sensitivities represent the impact on net income for the year ending December 31, 2020 against a $1 /bbl increase (decrease) in the Brent crude oil
price on average and a ¥ 1 depreciation (appreciation) against the U.S. dollar. These are based on the financial situation mainly of existing production
projects at the beginning of the fiscal year. These are for reference purposes only and the actual impact may change due to fluctuations in production
volumes, capital expenditures and cost recoveries, and may not be constant, depending on crude oil prices and exchange rates.
(Note2) This is a sensitivity on net income determined by fluctuations in the oil price and is subject to the average price of crude oil (Brent). As part of thesales price has been finalized at the beginning of each quarter, the sensitivity breakdown for each quarter is estimated taking into account thepercentage of the finalized sales price as follows; At the beginning of the 1Q : +6.5 billions of yen (1Q : +1.0 billions of yen, 2Q : +1.5 billions of yen, 3Q : +2.0 billions of yen , 4Q : +2.0 billions of yen)
 At the beginning of the 2Q : +4.5 billions of yen (1Q : －－－－－－－－ , 2Q : +1.0 billions of yen, 3Q : +1.5 billions of yen , 4Q : +2.0 billions of yen)
 At the beginning of the 3Q : +2.5 billions of yen (1Q : －－－－－－－－ , 2Q : －－－－－－－－ , 3Q : +1.0 billions of yen , 4Q : +1.5 billions of yen)
 At the beginning of the 4Q : +1.0 billions of yen (1Q : －－－－－－－－ , 2Q : －－－－－－－－ , 3Q : －－－－－－－－ , 4Q : +1.0 billions of yen)
(Note3) This is a sensitivity on net income determined by fluctuation of the yen against the U.S. dollar and is subject to the average exchange rate. On the other
hand, a sensitivity related to valuation for assets and liabilities denominated in the U.S. dollar on net income incurred by foreign exchange differences
between the exchange rate at the end of the fiscal year and the end of the previous fiscal year is almost neutralized.
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14

Supplementary material concerning change in accounting
period (Closing date of accounting period)

INPEX’s accounting period changed to the January to December period from the April to March period
The fiscal year ending December 31, 2019 (FY2019) is a transitional, nine‐month accounting period from April 1, 2019 to December 31, 2019.
To facilitate comparisons with FY2019/12, FY 2018 figures have been adjusted to nine‐month‐period “FY2018 adjusted actual figures”. Also, tofacilitate comparisons with FY2020, FY2019 figures have been adjusted to twelve‐month‐period “FY2019 Adjusted actual figures”. Periods
covered in the financial reporting figures (figures stated in the earnings reports, etc.)< Financial reporting figures (figures stated in the earnings reports, etc.) >2018
Jan‐MarApr‐Jun2019
Jul‐Sep

Oct‐Dec

Jan‐MarApr‐Jun

Jul‐Sep

INPEX and subsidiaries with provisional settlements ofaccounts(Note 2)

FY2019/03

FY2019/12

Subsidiaries with a December 31 fiscal year‐end(Note 3)(FY2018)(FY2019)

Oct‐Dec< Adjusted actual figures for FY2018 to compare with FY2019 (Note1) >2018
Apr‐JunJan‐Mar2019
Jul‐Sep

Oct‐Dec

Jan‐MarApr‐Jun

Jul‐Sep

INPEX and subsidiaries with provisional settlements ofaccounts(Note 2)

FY2018FY2019/12

Subsidiaries with a December 31 fiscal year‐end(Note 3)

Adjusted actual figures(FY2019)

Oct‐Dec< Adjusted actual figures for FY2019 to compare with FY2020(Note1) >2018
Jan‐Mar
INPEX and subsidiaries formerly with provisional settlements ofaccounts
Subsidiaries with a December 31 fiscal year‐end originally

Apr‐Jun2019
Jul‐Sep

Oct‐Dec

Jan‐MarApr‐Jun

Jul‐Sep

FY2019FY2020/12

Adjusted actual figures(FY2020)

Oct‐Dec

Note 1 Adjusted actual figures are unaudited figures for reference purposes only
Note 2 INPEX, major domestic subsidiaries and overseas subsidiaries with provisional settlements of accounts. Subsidiaries with a December 31 fiscal year‐end that provisionallysettled their accounts on March 31 due to the relatively large impact of their performance on the Company’s consolidated financial accounts.
Note 3 Subsidiaries adopting an accounting period from January to December. The accounting periods of subsidiaries with a December 31 fiscal year‐end will remain unchanged(January 1 ‐ December 31, 2019 will be settled to FY2019/12 period) while FY2019 is scheduled to be a nine‐month accounting period.

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15