Financial Results for the year ended March 31, 2019
Support Material

INPEX CORPORATION
May 13, 2019

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, 2019
Apr. ‘17 ‐ Mar. ‘18

Apr. ‘18 ‐ Mar. ‘19

933.7

971.3

37.6

4.0%

Crude oil sales

710.2

782.6

72.4

10.2%

Natural gas sales (including LPG)

208.1

170.7

(37.3)(18.0%)

Others

15.3

17.9

2.6

17.4%

Operating income (Billions of yen)

357.3

474.2

116.9

32.7%

Ordinary income (Billions of yen)

387.2

519.2

132.0

34.1%

Net income attributable toowners of parent (Billions of yen)

40.3

96.1

55.7

138.1%Net income per share (Yen)

27.64

65.81

38.17

138.1%

13.01

22.5%

0.07yen

0.1%

depreciation

depreciation

Net sales(Billions of yen)

Change%Change

Average number of INPEX shares issued and outstanding during the year ended March 31, 2019: 1,460,260,300

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

57.85

70.86

Average exchange rate (¥/$)

110.86110.93

2

Crude Oil Sales
Apr. ‘17 ‐ Mar. ’18

Apr. ‘18 ‐ Mar. ’19

710.2

782.6

72.4

10.2%

Sales volume (thousand bbl)

112,882

100,503(12,379)(11.0%)

Average unit price of overseas
production ($/bbl)

56.30

70.30

14.00

24.9%

Average unit price of domestic
production (¥/kl)

42,143

51,667

9,524

22.6%

Average exchange rate (¥/$)

111.35110.730.62yenAppreciation

0.6%
Appreciation

Apr. ‘17 ‐ Mar. ’18

Apr. ‘18 ‐ Mar. ’19

Change%Change

Net sales (Billions of yen)

Sales volume by region(thousand bbl)

%Change

940

789

(151)

(149.5 thousand kl)(125.4 thousand kl)(‐24.1 thousand kl)

Asia & Oceania

6,554

5,621

(932)

(14.2%)

Eurasia (Europe & NIS)

13,26615,115

1,849

13.9%

Middle East & Africa

90,412

78,048(12,364)(13.7%)

Americas

1,710

930

(780)

(45.6%)

112,882

100,503(12,379)(11.0%)

Japan

Total
3

Change(16.1%)

Natural Gas Sales (excluding LPG)
Apr. ‘17 ‐ Mar. ‘18

Apr. ‘18 ‐ Mar. ’19

Net sales (Billions of yen)

202.0

169.2

(32.8)(16.3%)

Sales volume (million cf)

264,816

232,851(31,965)(12.1%)

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

5.04

3.18

(1.86)(36.9%)

Average unit price of domestic sales(¥/m3)

46.36

53.46

7.10

15.3%

Average exchange rate (¥/$)

110.70110.210.49yenAppreciation

0.4%
Appreciation

Apr. ‘17 ‐ Mar. ‘18

Apr. ‘18 ‐ Mar. ‘19

Change%Change

Asia & Oceania

79,243(2,123million ㎥*)
137,371

80,930(2,169million ㎥*)
106,703

1,687(+45million ㎥*)(30,668)(22.3%)

Eurasia (Europe & NIS)

7,808

9,996

2,188

28.0%

Middle East & Africa

‐

‐

‐

‐

Americas40,39435,223(5,171)(12.8%)

264,816

232,851(31,965)

Sales volume by region (million cf)
Japan

Total

Change%Change

2.1%(12.1%)*1m3=41.8605MJ(FYI) LPG Sales

4

Apr. ‘17 ‐ Mar. ’18

Apr. ‘18 ‐ Mar. ’19

6.0

1.5

Net Sales (Billions of yen)(Billions of Yen)

1,200

Change%Change(4.5)(75.1%)

Analysis of Net Sales Increase
for the year ended March 31, 2019

Crude Oil

(77.6)

Crude Oil

(4.4)

Natural Gas (including LPG)

(21.6)Natural Gas (including LPG)

(0.2)

2.6

139.1

1,000

(4.7)
800

(99.3)
Crude Oil+154.5Natural Gas (including LPG)

( 15.4)

600

971.3

933.7
400

200

0
5

Net Sales
Decrease in
Apr. ‘17 ‐ Mar. ‘18 Sales Volume

Increase in
Unit Price

Exchange rate
(Appreciation of Yen)

OthersNet Sales
Apr. ‘18 ‐ Mar. ’19

Statement of Income(Billions of Yen)

Apr. ‘17‐ Mar. ’18 Apr. ‘18 ‐ Mar. ’19

Change%Change

Net sales

933.7

971.3

37.6

4.0%

Cost of sales

498.0

413.3

(84.7)(17.0%)

Gross profit

435.6

558.0

122.4

28.1%

Exploration expenses

1.3

11.6

10.3

‐

Selling, general andadministrative expenses

76.9

72.1

(4.8)

(6.3%)

Operating income

357.3

474.2

116.9

32.7%

Other income

55.2

70.9

15.6

28.3%

Other expenses

25.3

25.9

0.5

2.2%

Ordinary income

387.2

519.2

132.0

34.1%

Extraordinary loss
(Impairment loss)

79.9

25.2

(54.7)(68.4%)

Total income taxes

309.3

397.2

87.8

28.4%

Net income (loss) attributable
to non‐controlling interests(42.4)

0.6

43.1

‐

Net income attributable toowners of parent

40.3

96.1

55.7

138.1%

Decrease in sales volume : (99.3)
Increase in unit price :+139.1
Exchange rate
(Appreciation of yen) :(4.7)
Others :+2.6

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

299.9(58.7)
99.6(26.5)

Main factors for change :Equity in earnings of affiliates+24.1

Main factors for change :Interest expense
Foreign exchange loss

+10.2
(10.4)

Main factor for change :Shale Gas Project in Canada(66.6)

6

Other Income/Expenses

7(Billions of Yen)

Apr. ‘17 ‐Mar. ’18

Apr. ‘18 ‐Mar. ’19

Change%Change

Other income

55.2

70.9

15.6

28.3%

Interest income

6.4

7.6

1.1

18.0%

Dividend income

4.7

6.7

1.9

41.5%

Equity in earnings of affiliates

4.1

28.3

24.1

576.6%

Reversal of allowance for doubtful accounts

0.1

8.3

8.1

‐

Gain on reversal of allowance for recoverable
accounts under production sharing

17.5

‐

(17.5)(100.0%)Compensation income

12.6

7.4

(5.1)

(40.6%)

Foreign exchange gain

‐

1.9

1.9

‐

Other

9.4

10.3

0.8

9.4%

Other expenses

25.3

25.9

0.5

2.2%

Interest expense

7.0

17.3

10.2

145.0%

Provision for allowance for recoverable accounts
under production sharing

‐

1.4

1.4

‐

Provision for exploration projects

‐

0.2

0.2

‐

Foreign exchange loss

10.4

‐

(10.4)

‐

Other

7.8

6.9

(0.8)

(11.4%)

Mainly attributed to gain on
reversal of allowance for
KashaganCompensation for
termination of Ecuador’s
Block 18

Analysis of Net Income Increase(億円)(Billions of Yen)
250

54.7
200

34.2

84.7
150

4.8
(87.8)(29.5)
100

139.1(43.1)

(4.7)

40.3

50

96.1

2.6

0

‐50

‐100

(99.3)Net income
attributableto ownersof parent
Apr.17 –Mar. ‘18

Decreasein SalesvolumeIncrease in
Unit price8

Exchange rate
(Appreciationof yen)OthersDecrease in
Cost ofsales

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

Net Sales

Net income Net income
Extraordinary Increase in
Otherattributable
income(loss)
loss
incometo owners
and expenses (Impairment tax payable attributable
to non‐controlling of parent
loss)
Apr.18 –interests
Mar. ‘19*Provision for (gain on reversal of) allowance for recoverable accounts under production sharing and Provision for exploration projects

Balance Sheet(Billions of yen)
Current assets

Mar. ’18

Mar. ’19

Change%Change

466.3

457.7

(8.6)

(1.9%)

2,044.6

2,278.9

234.3

11.5%

Intangible assets

541.5

520.2

(21.2)(3.9%)

Recoverable accounts under
production sharing

589.0

568.0

(21.0)(3.6%)

Other

692.4

1,038.5

346.1

50.0%

Less allowance for recoverable
accounts under production sharing(81.6)(70.0)

11.6(14.2%)

Total assets

4,252.3

4,793.5

541.1

12.7%

Current liabilities

305.4

372.0

66.5

21.8%

Long‐term liabilities

788.0

1,163.9

375.8

47.7%

3,158.8

3,257.5

98.7

3.1%

(Non‐controlling interests)

242.1

251.1

8.9

3.7%

Total liabilities and net assets

4,252.3

4,793.5

541.1

12.7%

Net assets per share (Yen)

1,997.24

2,058.95

61.71

3.1%

Tangible fixed assets

Total net assets

9

Summary of financial information
for Ichthys downstream JV (100%basis, including the Company’s
equity share 66.245%)(Billions of yen)
• Current assets : 140.1• Fixed assets : 3,789.6• Total assets:
3,929.8※Fixed assets include interest
expense which are not included in
CAPEX, and capitalized costs before
FID.

Total shareholders’ equity ： +69.6
Accumulated other comprehensive
income (Billions of yen) : +20.1• Unrealized holding gain (loss) on
securities : (7.3)• Unrealized gain (loss) fromhedging instruments : (19.3)• Translation adjustments : +46.9

Statement of Cash Flows(Billions of Yen)

Apr. ‘17 ‐ Mar. ’18

Apr. ‘18 ‐ Mar. ‘19

Change%Change

Income before income taxes

307.2

494.0

186.7

60.8%

Depreciation and amortization

92.8

106.8

14.0

15.2%

Impairment loss

79.9

25.2

(54.7)(68.4%)

Recovery of recoverable accounts under production sharing (capital expenditures)

53.4

33.1

(20.3)(38.0%)

Recoverable accounts under production sharing (operating expenditures)

9.6

4.6

(4.9)

(51.8%)(329.2)(388.0)(58.8)

17.9%

Other

64.6

(37.2)(101.9)‐Net cash provided by (used in) operating activities

278.5

238.5

(39.9)(14.4%)

Payments for time deposits / Proceeds from time deposits

333.9

0.0

(333.9)(100.0%)60.5(22.3%)

Income taxes paid

Payments for purchases of tangible fixed assets(271.3)(210.7)

Payments for purchases of investment securities(127.7)(104.7)23.0(18.0%)

Investment in recoverable accounts under production sharing (capital expenditures)(24.1)(31.6)

(7.4)

31.1%

Long‐term loans made / Collection of long‐term loans receivable(172.2)(262.4)(90.1)

52.3%

Payments for purchases of mining rights(100.9)(107.8)

(6.9)

6.9%

10.5

35.3

24.7

234.1%Net cash provided by (used in) investing activities(351.9)(682.0)(330.0)93.8%

Net cash provided by (used in) financing activities

34.7

405.1

370.4

‐

Cash and cash equivalents at end of the period

276.0

239.6

(36.4)(13.2%)

Other

10

Financial Indices
Equity Ratio**

Net Debt/Total Capital Employed (Net)*

21.7%

11.8%

Mar.ʹ18

Mar.ʹ19

68.6%

62.7%

Mar.ʹ18

Mar.ʹ19

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

38.0%
24.0%

Mar.ʹ18
11

Mar.ʹ19

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)

Consolidated Financial Forecasts for the year ending
December 31, 2019 (nine‐month accounting period)
1st Half (Apr. – Sep. ‘19)

2nd Half (Oct. – Dec. ‘19)

Full year

Brent oil price ($/bbl)

65.0

65.0

65.0

Average exchange rate (¥/$)

110.0

110.0

110.0

Full Year

Mar. ‘19

Mar. ‘19

Dec. ‘19(Actual)(Adjusted actual*)(Forecasts)

Change%ChangeNet Sales (Billions of yen)

971.3

800.1

958.0

157.9

19.7%

Operating Income (Billions of yen)

474.2

413.6

442.0

28.4

6.9%

Ordinary Income (Billions of yen)

519.2

445.6

430.0

(15.6)(3.5%)Net income attributable to owners ofparent (Billions of yen)

96.1

52.3

90.0

37.7

72.1%

Net Sales (Billions of yen)

438.2

438.2

549.0

110.8

25.3%

Operating Income (Billions of yen)

226.4

226.4

244.0

17.6

7.8%

Ordinary Income (Billions of yen)

246.9

246.9

228.0

(18.9)(7.7%)Net income attributable to owners ofparent (Billions of yen)

34.0

34.0

44.0

10.0

29.3%

1st Half

Cash dividends
per share (yen)

2Q End9.0

12.0

FY End

15.0

12.0

TOTAL

24.0

24.0

* As FY2019 (nine‐month period ending December 2019) is an irregular fiscal year, FY2018 (ended March 2019) has been adjusted based on the nine‐month accounting period
accordingly (some subsidiaries follow a twelve‐month accounting period). See slide 15 for details.
FY 2019 dividend reference dates are September 30, 2019 for the mid‐term dividend and December 31, 2019 for the year‐end dividend.

12

Sales and Investment Plan for the year ending
December 31, 2019 (nine‐month accounting period)
Mar. ’19

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

Crude oil (thousand bbl)1

100,50385,138102,695

17,557

20.6%

Natural gas (million cf)2

232,851

157,925

366,752

208,827132.2%

151,921

100,828

307,425

206,597204.9%

OverseasJapan

80,93057,09759,3272,230(2,168 million m3)(1,529 million m3)(1,589 million m3)(59 million m3)

204

203

435

232

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

Dec. ‘19(Actual)(Adjusted actual*)(Forecasts)

3.9%
114.3%%
ChangeChangeDevelopment expenditureand others4

471.0

370.6

263.0

(107.6)(29.0%)

Exploration expenditure

13.7

6.4

18.0

11.6

181.3%

Other expenditure

3.7

2.6

4.0

1.4

53.8%

6.3

Provision for explorations 19.3
5.6

13.0

206.3%

1.5

5.3

3.8

253.3%

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

Exploration expenses 11.6

Exploration expenses 3.5

Provision for explorations 13.3
1.6

Provision for explorations
2.8

1.8

Exploration expenses 13.7

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, FY2018 (ended March 2019) has been adjusted based on the nine‐month accounting period accordingly (some subsidiaries follow a
twelve‐month accounting period). See slide 15 for details.

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, 2019 (nine‐month accounting period) (Note 1)(Billions of yen)
At the Beginning of the 1Q : +3.8 (‐3.8)

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

The impact on net income will change in FY2019 as below;
At the beginning of the 2Q : +1.9 (‐1.9)
At the beginning of the 3Q : +0.7 (‐0.7)

 Exchange Rate; ¥1 depreciation(appreciation) against the U.S.
dollar (Note 3)+1.8 (‐1.8)(Note1) The sensitivities represent the impact on net income for the year ending December 31, 2019 (nine‐month accounting period) 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 : +3.8 billions of yen (1Q : +0.7 billions of yen, 2Q : +1.2 billions of yen, 3Q : +1.9 billions of yen)
 At the beginning of the 2Q : +1.9 billions of yen (1Q : －－－－－－－－, 2Q : +0.7 billions of yen, 3Q : +1.2 billions of yen)
 At the beginning of the 3Q : +0.7 billions of yen (1Q : －－－－－－－－, 2Q : －－－－－－－－, 3Q : +0.7 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.
14

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

INPEX’s accounting period is scheduled to change to the January to December period from the April to March period(Note 1)
The fiscal year ending December 31, 2019 (FY2019) is scheduled to be a transitional, nine‐month accounting period from April 1, 2019 to
December 31, 2019.
“FY2018 adjusted actual figures” are reference data based on adjusted figures for the nine‐month period (April 1 ‐ December 31, 2018) for theCompany and subsidiaries with provisional settlements of accounts, and the twelve‐month period (January 1 ‐ December 31, 2018) for
subsidiaries with a December 31 fiscal year‐end. Periods covered in the financial reporting figures (figures stated in the earnings reports, etc.)
and adjusted actual figures(Note 2) are as follows.

< Financial reporting figures (figures stated in the earnings reports, etc.) >2018
Jan‐MarApr‐JunINPEX and subsidiaries with provisional
settlements of accounts(Note 3)

2019
Jul‐Sep

Oct‐Dec

Jan‐MarApr‐Jun

Jul‐Sep

FY2019/03(FY2018)

FY2019/12(FY2019)

2018

2019

Subsidiaries with a December 31 fiscal year‐
end(Note 4)

Oct‐Dec< Adjusted actual figures(Note 2) >Jan‐Mar
INPEX and subsidiaries with provisional
settlements of accounts(Note 3)
Subsidiaries with a December 31 fiscal year‐
end(Note 4)

Apr‐Jun

Jul‐Sep

Oct‐Dec

FY2018Adjusted actual

Jan‐MarApr‐Jun

Jul‐Sep

Oct‐Dec

FY2019/12(FY2019)

Note 1 The change is subject to shareholder approval of a partial amendment to the Articles of Incorporation at the 13th Annual General Meeting of Shareholders scheduled tobe held in late June 2019.
Note 2 Adjusted actual figures are unaudited figures for reference purposes only
Note 3 INPEX, major domestic subsidiaries and overseas subsidiaries with provisional settlements of accounts. Subsidiaries with a December 31 fiscal year‐end thatprovisionally settled their accounts on March 31 due to the relatively large impact of their performance on the Company’s consolidated financial accounts.
Note 4 Subsidiaries adopting an accounting period from January to December. The accounting periods of subsidiaries with a December 31 fiscal year‐end will remainunchanged (January 1 ‐ December 31, 2019 will be settled to FY2019/12 period) while FY2019 is scheduled to be a nine‐month accounting period.

15