Financial Results for the year ended March 31, 2017
Support Material

INPEX CORPORATION
May 12, 2017

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.
1

Highlights of the Consolidated Financial Results
for the year ended March 31, 2017
Apr. ‘15 - Mar. ‘16

Apr. ‘16 - Mar. ‘17

1,009.5

874.4(135.1)(13.4%)

Crude oil sales

679.2

617.1

(62.0)(9.1%)Natural gas sales (including LPG)

316.7

242.5

(74.1)(23.4%)

Others

13.5

14.6

1.0

8.1%

Operating income (Billions of yen)

390.1

336.4

(53.6)(13.8%)

Ordinary income (Billions of yen)

374.7

333.8

(40.8)(10.9%)Net income attributable toowners of parent (Billions of yen)

16.7

46.1

29.3

175.2%Net income per share (Yen)

11.49

31.61

20.12

175.2%

1.15

2.4%

Net sales(Billions of yen)

Change%Change

Average number of INPEX shares issued and outstanding during the year ended March 31, 2017: 1,460,357,146

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

48.73

49.88

Average exchange rate (¥/$)

120.15108.382

11.77 yen

9.8% yenappreciation

appreciation

Crude Oil Sales
Apr. ‘15 - Mar. ’16

Apr. ‘16 - Mar. ’17

679.2

617.1

(62.0)(9.1%)

Sales volume (thousand bbl)

117,227

122,207

4,980

4.2%

Average unit price of overseas
production ($/bbl)

47.95

46.41

(1.54)(3.2%)

Average unit price of domestic
production (¥/kl)

38,25935,997(2,262)(5.9%)

Average exchange rate (¥/$)

120.74108.6712.07 yenappreciation

10.0% yenappreciation

Apr. ‘15 - Mar. ’16

Apr. ‘16 - Mar. ’17

Change%Change

741

900

159

(117.8 thousand kl)(143.0 thousand kl)(+25.3 thousand kl)

Asia & Oceania

13,505

12,246(1,259)(9.3%)

Eurasia (Europe & NIS)

11,666

11,336(331)(2.8%)

Middle East & Africa

89,486

95,495

6,009

6.7%

Americas

1,829

2,230

401

21.9%

117,227

122,207

4,980

4.2%

Net sales (Billions of yen)

Sales volume by region(thousand bbl)
Japan

Total
3

Change%Change21.4%

Natural Gas Sales (excluding LPG)
Apr. ‘15 - Mar. ‘16

Apr. ‘16 - Mar. ‘17

Net sales (Billions of yen)

306.2

235.7

(70.4)(23.0%)

Sales volume (million cf)

337,216

342,994

5,778

1.7%

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

6.58

5.19

(1.39)(21.1%)

Average unit price of domestic
sales (¥/m3)

52.29

43.36

(8.93)(17.1%)

Average exchange rate (¥/$)

119.95108.38

11.57 yenappreciation

9.6% yenappreciation

Sales volume by region (million cf)

Apr. ‘15 - Mar. ‘16

Apr. ‘16 - Mar. ‘17

Change%ChangeJapan

65,304(1,750 million m3*)

71,295(1,910 million m3*)

5,991(+161 million m3*)

9.2%

Asia & Oceania

238,759

230,183(8,576)(3.6%)

Eurasia (Europe & NIS)

-

1,947

1,947

-

Middle East & Africa

-

-

-

-

Americas33,15339,569

6,416

19.4%

337,216

342,994

5,778

1.7%

Apr. ‘15 - Mar. ’16

Apr. ‘16 - Mar. ’17

Change

10.5

6.7

Total

Change%Change(FYI) LPG Sales

4

Net Sales (Billions of yen)

(3.7)

%Change(35.8%)*1m3=41.8605MJ

(Billions of Yen)

Analysis of Net Sales Decrease
for the year ended March 31, 2017

1,200

Crude Oil

(22.9)

Crude OilNatural Gas (including LPG)

(62.9)Natural Gas (including LPG) (17.1)(67.9)

34.8
1,000

1.0

(85.9)(85.1)

800

600

Crude Oil

+28.8

Natural Gas (including LPG)

+5.9

1,009.5
874.4

400

200

0
Net Sales
Increase in
Apr. ‘15 - Mar. ‘16 Sales Volume
5

Decrease in
Exchange rate
Unit Price (Appreciation of Yen)

OthersNet Sales
Apr. ‘16 - Mar. ’17

Statement of Income(Billions of Yen)
Net sales

Apr. ‘15 - Mar. ’16 Apr. ‘16 - Mar. ’17

Change%Change

1,009.5

874.4(135.1)(13.4%)

Cost of sales

526.7

453.8

(72.9)(13.8%)

Gross profit

482.8

420.5

(62.2)(12.9%)

6.1

6.7

0.5

9.2%

Exploration expenses
Selling, general andadministrative expenses

86.5

77.3

(9.1)

(10.5%)

Operating income

390.1

336.4

(53.6)(13.8%)

Other income

69.9

39.0

(30.8)(44.1%)

Other expenses

85.3

41.6

(43.6)(51.2%)

Ordinary income

374.7

333.8

(40.8)(10.9%)

Extraordinary loss
(Impairment loss)

45.8

6.3

(39.5)(86.1%)

Total income taxes

354.3

271.3

(83.0)(23.4%)Net income (loss) attributable
to non-controlling interests(42.2)

9.9

52.2

-

Net income attributable toowners of parent

16.7

46.1

29.3

175.2%

6

Increase in sales volume : +34.8
Decrease in unit price :(85.9)
Exchange rate
(Appreciation of yen) :(85.1)
Others :1.0
Cost of sales for
Crude Oil :(Change)
Cost of sales for
Natural Gas* :(Change)* Including LPG

304.4(39.7)
136.9(33.7)

Main factors for change :Gain on sales of marketablesecurities(25.9)

Dividend income(8.0)

Main factors for change :Equity in losses of affiliates(20.6)
Provision for allowance for recoverable
accounts under production sharing(10.6)
Loss on disposal of fixed Assets(8.5)

Other Income/Expenses(Billions of Yen)

Change%Change

Other income

69.9

39.0

(30.8)(44.1%)

Interest income

10.7

10.4

(0.2)

(2.7%)

Dividend income

10.8

2.8

(8.0)

(74.1%)

Gain on sales of marketable securities

25.9

-

(25.9)-

Gain on sales of investment securities

5.6

4.9

(0.6)

(11.8%)

-

2.1

2.1

-

Foreign exchange gain

2.9

-

(2.9)

-

Other

13.7

18.6

4.9

35.8%

Other expenses

85.3

41.6

(43.6)(51.2%)

Interest expense

4.1

5.2

1.0

24.5%

Equity in losses of affiliates

20.6

-

(20.6)-

Provision of allowance for doubtful accounts

0.1

8.3

8.1

-

Provision for allowance for recoverable accounts
under production sharing

25.0

14.3

(10.6)(42.6%)

Provision for exploration projects

0.3

-

(0.3)

-

-

3.7

3.7

-

Loss on disposal of fixed assets

13.2

4.7

(8.5)

(64.0%)

Other

21.6

5.1

(16.4)(76.0%)

Equity in earnings of affiliates

Foreign exchange loss

7

Apr. ‘15 - Mar. ‘16 Apr. ‘16 - Mar. ‘17

Analysis of Net Income Increase(億円)(Billions of Yen)
150

83.0

100

34.8

46.1

50

(52.2)

16.7

39.5

0

10.4

1.8

72.9

(85.9)

-50

9.1

-100

1.0
(85.1)-150

8

Net income
attributableto ownersof parent
Apr.15 –Mar. ‘16

Increasein SalesvolumeDecrease in
Unit priceExchange rate
(Appreciationof yen)Net Sales

OthersDecrease in
Cost ofsales

Decrease in Decrease
Explorationin
expenses andSG&A
Allowance for
exploration*

Net income Net income
Extraordinary Decrease in
Otherincome(loss)
attributable
loss
incometax
payableattributableto owners(Impairment
and expenses
to non-controlling of parent
loss)
interests
Apr.16 –Mar. ‘17*Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects

Balance Sheet(Billions of yen)
Current assets

Mar. ’16

Mar. ’17

Change%Change

984.3

942.9

(41.3)(4.2%)

1,752.6

1,928.5

175.9

10.0%

Intangible assets

541.4

521.2

(20.2)(3.7%)

Recoverable accounts under
production sharing

727.7

611.9

(115.8)(15.9%)

Other

495.4

424.2

(71.1)(14.4%)

Less allowance for recoverable
accounts under production sharing(131.7)(116.8)14.9(11.3%)

Total assets

4,369.8

4,312.1(57.6)(1.3%)

Current liabilities

319.1

297.4

(21.6)(6.8%)

Long-term liabilities

871.9

807.1

(64.7)(7.4%)

3,178.8

3,207.5

28.7

0.9%

(Non-controlling interests)

245.9

264.3

18.4

7.5%

Total liabilities and net assets

4,369.8

4,312.1(57.6)(1.3%)Net assets per share (Yen)

2,008.34

2,015.38

7.04

0.4%

Tangible fixed assets

Total net assets

9

Available fund (Billions of yen)* :663.0
Breakdown• Cash and deposits : 652.6• Available investment securities :10.4*Amounts to be allocated to theinvestments based on the investment
plan

Summary of financial information
for Ichthys downstream JV (100%basis, including the Company’s
equity share 62.245%)(Billions of yen)
• Current assets : 20.5
• Fixed assets : 3,094.7• Total assets:
3,115.2

Total shareholders’ equity ： +19.8
Accumulated other comprehensive
income (Billions of yen) : (9.6)• Unrealized holding gain on
securities : +1.5
• Unrealized loss fromhedging instruments : +7.3
• Translation adjustments : (18.5)

Statement of Cash Flows(Billions of Yen)

Apr. ‘15 - Mar. ‘16

Apr. ‘16 - Mar. ‘17

Change%Change

Income before income taxes

328.8

327.5

(1.3)

(0.4%)

Depreciation and amortization

86.7

91.1

4.3

5.0%

Recovery of recoverable accounts under production sharing (capital expenditures)

64.1

79.8

15.6

24.4%

Recoverable accounts under production sharing (operating expenditures)(45.8)

(2.8)

43.0

-

Income taxes paid

(393.5)(292.8)100.7(25.6%)

Other

143.2

72.9

(70.3)(49.1%)Net cash provided by (used in) operating activities

183.7

275.8

92.1

50.1%

Payments for time deposits / Proceeds from time deposits

245.9

566.5

320.6

130.4%

Payments for long-term time deposits / Proceeds from long-term time deposits(439.9)

-

439.9

-

Payments for purchases of tangible fixed assets(476.7)(278.3)198.4(41.6%)

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

196.4(69.6)(266.0)-Investment in recoverable accounts under production sharing (capital expenditures)(60.4)(37.3)

23.1(38.2%)

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

169.0(133.2)(302.2)-

Payments for purchases of mining rights(134.5)

-

134.5

-

Other

(43.1)

5.4

48.6

-

Net cash provided by (used in) investing activities(543.5)

53.4

597.0

-

Net cash provided by (used in) financing activities

156.7(65.4)(222.1)-

Cash and cash equivalents at end of the period

53.8

316.7

262.9

-

10

Financial Indices
Equity Ratio**

Net Debt/Total Capital Employed (Net)*
Mar.'16

Mar.'17
0.9%(8.1%)*

D/E Ratio***

11

**
***

25.3%

23.4%

Mar.'16

Mar.'17

67.1%

68.3%

Mar.'16

Mar.'17

Net Debt/Total Capital Employed (Net) = (Interest-bearing debt - Cashand deposits - Public and corporate bonds and other debt securities(with determinable value) – Long term time deposits)/(Net assets +Interest-bearing debt - Cash and deposits - Public and corporate bonds
and other debt securities (with determinable value) – Long term time
deposits)
Equity Ratio = (Net assets - Non-controlling interests)/Total assets
D/E Ratio = Interest-bearing debt/ (Net asset - Non-controllinginterests)

Consolidated Financial Forecasts
for the year ending March 31, 2018
1st Half

2nd Half

Full year

Brent oil price ($/bbl)

50.0

50.0

50.0

Average exchange rate (¥/$)

110.0

110.0

110.0

Mar. ‘17(Actual)Mar. ‘18(Forecasts)

Full Year

Change% Change

Net Sales (Billions of yen)

874.4

844.0

(30.4)(3.5%)

Operating Income (Billions of yen)

336.4

303.0

(33.4)(9.9%)

Ordinary Income (Billions of yen)

333.8

329.0

(4.8)

(1.5%)Net income attributable to owners ofparent (billions of yen)

46.1

47.0

0.8

1.8%

Net Sales (Billions of yen)

389.6

431.0

41.3

10.6%

Operating Income (Billions of yen)

138.0

155.0

16.9

12.3%

Ordinary Income (Billions of yen)

132.1

167.0

34.8

26.3%

Net income attributable to owners ofparent (billions of yen)

15.7

24.0

8.2

52.6%

2Q End9.0

9.0

FY End

9.0

9.0

TOTAL

18.0

18.0

1st Half

Cash dividends per
share (yen)12Sales and Investment Planfor the year ending March 31, 2018
Mar. ’17(Actual)Change% Change

Sales Volume

Crude oil (thousand bbl)1

122,207

119,393(2,814)(2.3%)Natural gas (million cf)2

342,994

266,609(76,385)(22.3%)

Overseas271,699

187,643(84,057)(30.9%)

Japan

71,295(1,910 million m3)

78,967(2,116 million m3)

7,671(206 million m3)

10.8%

1,860

257

(1,602)(86.2%)LPG (thousand bbl)3(Billions of yen)Mar. ‘17(Actual)Mar. ‘18(Forecasts)

Change% Change

Development expenditure4

578.5

606.0

27.5

4.8%

Other capital expenditure

10.5

1.0

(9.5)

(90.5%)

Exploration expenditure

16.1

8.0

(8.1)

(50.3%)

8.7

(0.8)

(8.4%)

2.9

1.0

52.6%

Exploration expenses andProvision for explorations5(Non-controlling Interests Portion)613

Mar. ‘18(Forecasts )Exploration expenses 6.7
Provision for explorations
2.7

9.5
1.9

Exploration expenses 4.5
Provision for explorations
4.2

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 Development expenditure includes investment in Ichthys downstream
5 “Provision for allowance for recoverable accounts under production sharing” + ”Provision for exploration projects”, related to exploration activities
6 Capital increase from Non-controlling interests, etc.

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 March 31, 2018 (Note 1)(Billions of yen)

Brent Crude Oil Price; $1/bbl increase(decrease) (Note 2)+2.4 (-2.4)

Exchange Rate; ¥1 depreciation(appreciation) against the U.S. dollar (Note 3)+1.0 (-1.0)(Note1) The sensitivities represent the impact on net income for the year ending March 31, 2018 against a $1 /bbl increase (decrease) of Brent crude oil
price on annual average and a ¥ 1 depreciation (appreciation) against the U.S. dollar. These are based on the financial situation at the beginningof the fiscal year. These are for reference purposes only and the actual impact may be subject to change 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 by fluctuation of crude oil price and is subject to the average price of crude oil (Brent) in the fiscal year.
(Note3) This is a sensitivity on net income by fluctuation of the yen against the U.S. dollar and is subject to the average exchange rate in the fiscal year.
On the other hand, a sensitivity related to valuation for assets and liabilities denominated in the U.S. dollar on net income incurred by foreignexchange differences between the exchange rate at the end of the fiscal year and the end of the previous fiscal year is almost neutralized.

14