Financial results for the six months ended June 30, 2020

Supporting Material
INPEX CORPORATION
August 6, 2020

Cautionary Statement
This presentation includes forward‐looking information that reflects the plans andexpectations of the Company. Such forward‐looking information is based on the current
assumptions and judgments of the Company in light of the information currently available toit, and involves known and unknown risks, uncertainties and other factors. Such risks,
uncertainties and other factors may cause the Company’s performance, achievements orfinancial position to be materially different from any future results, performance,achievements or financial 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 andproduction
The Company undertakes no obligation to publicly update or revise the disclosure ofinformation in this presentation (including forward‐looking information) after the date of thispresentation.

Copyright © 2020 INPEX CORPORATION. All rights reserved.

1Subsidiaries and Affiliates

65 Consolidated Subsidiaries
Major Subsidiaries

Country / Region

Ownership

Phase

Accounting Term

Japan Oil Development Co., Ltd.

UAE

100%

Production

December

JODCO Onshore Limited

UAE

51 %

Production

December

JODCO Lower Zakum Limited

UAE

100%

Production

December

INPEX Sahul, Ltd.

Timor‐Leste

100%

Production

December

INPEX Ichthys Pty Ltd

Australia

100%

Production

December

INPEX Southwest Caspian Sea, Ltd.

Azerbaijan

51%

Production

December

INPEX North Caspian Sea, Ltd.

Kazakhstan

51%

Production

December

INPEX Oil & Gas Australia Pty Ltd

Australia

100%

ProductionDecember

INPEX Eagle Ford, LLC

United States

100%

Production

December

Ownership

Phase

Accounting Term

44%

Production

December

20 Equity Method Affiliates
Major Affiliates
MI Berau B.V.

Country / Region
Indonesia

Angola Block 14 B.V.

Angola49.99%

Production

DecemberIchthys LNG Pty Ltd

Australia

66.245%

Production

December

Copyright © 2020 INPEX CORPORATION. All rights reserved.

2Highlights of the Consolidated Financial Results
for the six months ended June 30, 2020
(Reference)
2Q FY2020
Same Period Last Year
(January ‐ June ’20)
(January ‐ June ’19)
Net sales(Billions of yen)

Change% Change

563.1

391.6

(171.4)(30.5%)

Crude oil sales

421.3

246.3

(175.0)(41.5%)Natural gas sales (including LPG)

132.3

138.2

5.8

4.5%

9.4

7.1

(2.3)

(25.0%)

Operating income (Billions of yen)

269.1

123.7

(145.3)(54.0%)

Ordinary income (Billions of yen)

270.7

149.2

(121.4)(44.9%)Net income (loss) attributable toowners of parent (Billions of yen)

82.4

(120.7)(203.2)‐

Net income (loss) per share* (Yen)

56.48(82.73)(139.21)‐

Others* Average number of INPEX shares issued and outstanding during the six months ended June 30, 2020: 1,460,203,039

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

66.17

42.10

(24.07)(36.4%)

Average exchange rate (¥/$)

110.06108.251.81 yenappreciation

1.6%
appreciation

Copyright © 2020 INPEX CORPORATION. All rights reserved.

3

Crude Oil Sales(Reference)
Same Period Last Year
(January ‐ June ’19)

2Q FY2020(January ‐ June ’20)

Net sales (Billions of yen)

421.3

246.3

(175.0)(41.5%)

Sales volume (thousand bbl)

57,78460,894

3,111

5.4%

Average unit price of overseas production($/bbl)66.21

37.27(28.94)(43.7%)

Average unit price of domestic production(¥/kl)

46,27031,382(14,888)(32.2%)

Average exchange rate (¥/$)

110.13108.41

1.72yenappreciation

1.6%
appreciation(Reference)
Same Period Last Year
(January – June ’19)

2Q FY2020(January – June ’20)

ChangeJapan

403(64.1 thousand kl)

335(53.2 thousand kl)(68)(‐10.9 thousand kl)(17.0%)

Asia & Oceania

7,719

7,209(510)(6.6%)

Eurasia (Europe & NIS)

6,417

8,486

2,070

32.3%

Middle East & Africa

42,531

42,925394

0.9%

Americas

714

1,940

1,225

171.6%

57,78460,894

3,111

5.4%

Sales volume by region (thousand bbl)

Total

Change% Change% Change

Copyright © 2020 INPEX CORPORATION. All rights reserved.

4

Natural Gas Sales (excluding LPG)
(Reference)
Same Period Last Year
(January ‐ June ’19)

2Q FY2020(January ‐ June ’20)

Net sales (Billions of yen)

130.9

136.7

5.8

4.4%

Sales volume (million cf)

185,197

222,856

37,65920.3%

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

4.21

4.17(0.04)(1.0%)

Average unit price of domestic sales (¥/m3)

57.46

50.65

(6.81)(11.9%)

Average exchange rate (¥/$)

110.10108.45

1.65yenappreciation

1.5%
appreciation(Reference)
Same Period Last Year
(January ‐ June ’19)

2Q FY2020(January ‐ June ’20)

Japan

41,866(1,122 million m3 *)39,826(1,067 million m3 *)(2,040)(‐55 million m3 *)(4.9%)

Asia & Oceania
Eurasia (Europe & NIS)
Middle East & Africa
AmericasTotal

126,285
3,983‐
13,063
185,197

168,905
4,853
‐
9,272
222,856

42,620870‐(3,791)
37,65933.7%
21.8%‐(29.0%)
20.3%

Sales volume by region (million cf)

Change% Change

Change% Change* 1m3=41.8605MJ
Copyright © 2020 INPEX CORPORATION. All rights reserved.

5

Analysis of Net Sales Decrease(Billions of Yen)
700

Crude Oil

(193.8)Natural Gas (including LPG)

(8.1)

38.0

600
500
400

(201.9)

300

563.1

Crude Oil

(3.8)

Natural Gas (including LPG)

(1.2)

(5.1)

Crude Oil

+22.6

Natural Gas (including LPG)

+15.3

(2.3)

200

391.6

1000(Reference)
Same Period Last Year(January ‐ June ’19)

Increase inSales Volume

Decrease inUnit Price

Exchange rate
(Appreciation of Yen)

Others2Q FY2020(January ‐ June ’20)

Copyright © 2020 INPEX CORPORATION. All rights reserved.

6

Statement of Income(Billions of Yen)
Net sales(Reference)
2Q FY2020
Same Period Last Year
(January ‐ June ’19) (January ‐ June ’20)

563.1

391.6

Change% Change(171.4)(30.5%)

Cost of sales

246.8

226.0(20.8)(8.4%)

Gross profit

316.3

165.6

(150.6)(47.6%)

Exploration expenses

10.2

4.6

(5.5)

(54.1%)

Selling, general andadministrative expenses

36.9

37.1

0.2

0.6%

Operating income

269.1

123.7

(145.3)(54.0%)

Other income

23.2

45.3

22.1

95.2%

Other expenses

21.6

19.9

(1.7)

(8.1%)

Ordinary income

270.7

149.2

(121.4)(44.9%)

5.4

192.4

186.9

‐

Total income taxes

189.3

78.2

(111.0)(58.7%)Net income (loss) attributable to non‐controlling interests

(6.5)

(0.6)

5.9

‐

Net income (loss) attributable toowners of parent

82.4(120.7)(203.2)‐

Increase in sales volume :+38.0

Decrease in unit price :(201.9)Exchange rate:
Others :

(5.1)
(2.3)

Cost of sales for Crude Oil:
(Change)138.3(31.7)

Cost of sales for Natural Gas*: 81.9(Change)+12.6* Including LPG

Main factors for change :Equity in earnings of affiliates +21.1
Foreign exchange gain+3.7

Main factors for change :Extraordinary loss (Impairment loss)

Copyright © 2020 INPEX CORPORATION. All rights reserved.

Foreign exchange loss

(5.6)

Main factors for change :Prelude FLNG Project
Eagle Ford
Lucius Oil Field
Bayu‐Undan+130.8+33.6+18.9+8.97

Other Income and Expenses(Billions of Yen)

(Reference)
Same Period Last Year(Jan ‐ June ’19)

2Q FY2020(Jan ‐ June ’20)

Change% Change

Other income

23.2

45.3

22.1

95.2%

Interest income

1.7

0.5(1.2)(67.1%)

Dividend income

6.4

5.9(0.4)(7.6%)

Equity in earnings of affiliates

9.5

30.7

21.1

222.8%

‐

3.7

3.7

‐

Other

5.5

4.4(1.0)(19.4%)

Other expenses

21.6

19.9(1.7)(8.1%)

Interest expense

13.4

11.5(1.9)(14.4%)

‐

2.2

2.2

‐

Provision for exploration projects

0.2

‐

(0.2)

(100.0%)Foreign exchange loss

5.6‐(5.6)(100.0%)

Other

2.3

6.1

3.7

158.4%

Foreign exchange gain

Provision for allowance for recoverable accounts
under production sharing

Copyright © 2020 INPEX CORPORATION. All rights reserved.

8

Analysis of Income before One‐off Profit (Loss) Decrease(Billions of Yen)

Copyright © 2020 INPEX CORPORATION. All rights reserved.

* Income before one‐off profit (loss)= Net income (loss) attributable to owners of parent − one‐off profit (loss)

9

Analysis of Impact of One‐off Profit (Loss)(億円)(Billions of Yen)50

Prelude FLNG Project(130.8)Eagle Ford(33.6)
Lucius Oil Field(18.9)
Bayu‐Undan Gas‐Condensate Field (8.9)

36.4

0(50)

(120.7)

(100)

14.0
29.7

(2.7)

(5.9)

(150)
(192.4)(200)

Income before
one‐offprofit (loss)

Impairment loss

Tax effect on
Impairment loss

Refinance(Ichthys LNG Project)

Loss onvaluation of
investment securities

2Q FY2020(January – June ‘20)

Others

Net income (loss)
attributable toowners of parent
2Q FY2020(January – June ‘20)

Copyright © 2020 INPEX CORPORATION. All rights reserved.

10

Balance Sheet

December 2019

June 2020

Change% Change

419.8

512.2

92.4

22.0%

2,275.3

2,115.4(159.8)(7.0%)

Intangible assets

535.3

454.0

(81.2)(15.2%)

Recoverable accounts under production sharing

568.3

573.4

5.0

0.9%

Other

1,118.0

1,084.9(33.0)(3.0%)

Less allowance for recoverable
accounts under production sharing(66.8)(69.1)

(2.2)

3.3%

Total assets

4,849.9

4,671.0(178.9)(3.7%)

Current liabilities

401.4

372.9

(28.5)(7.1%)

Long‐term liabilities

1,151.3

1,243.9

92.68.0%

Total net assets

3,297.1

3,054.1(243.0)(7.4%)(Non‐controlling interests)

256.4

252.2

(4.1)

(1.6%)

Total liabilities and net assets

4,849.9

4,671.0(178.9)(3.7%)Net assets per share (Yen)2,082.43

1,918.88(163.55)(7.9%)(Billions of yen)
Current assets
Tangible fixed assets

Copyright © 2020 INPEX CORPORATION. All rights reserved.

Summary of financial information forIchthys downstream JV (100% basis,including the Company’s equity share
66.245%)(Billions of yen)
• Current assets : 81.0• Fixed assets : 3,630.2• Total assets:
3,711.2*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 1.2 trillion yen.
Adding the off‐balanced net loans of
the Ichthys IJV brings the total ofINPEX net loans to be 2.2 trillion yen(as of June, 2020).

(Billions of yen)
Total shareholders’ equity: (147.0)
Accumulated other comprehensive
income : (91.7)• Unrealized gain (loss) fromhedging instruments: (47.9)• Translation adjustments: (36.3)

11

Statement of Cash Flows2Q FY2020(January ‐ June ’20)

(Reference)
April ‐ September ’19

Income before income taxes(43.1)

271.1

Depreciation and amortization

88.8

83.0

Impairment loss

192.4

‐

Recovery of recoverable accounts under production sharing (capital expenditures)

14.8

19.3

Recoverable accounts under production sharing (operating expenditures)

(1.2)

(4.2)

(121.4)(187.0)43.2(27.6)

173.5

154.5

Payments for time deposits / Proceeds from time deposits(54.1)

0.0

Payments for purchases of tangible fixed assets(68.2)(66.2)

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

0.8

(1.0)

Investment in recoverable accounts under production sharing (capital expenditures)(18.9)(21.8)

Long‐term loans made / Collection of long‐term loans receivable(25.4)(75.1)‐(30.0)

(1.9)

(0.1)

Net cash provided by (used in) investing activities(167.7)(194.4)

Net cash provided by (used in) financing activities

124.0

24.9

Cash and cash equivalents at end of the period

303.1

219.1

(Billions of Yen)

Income taxes paid
Other
Net cash provided by (used in) operating activities

Payments for acquisitions of participating interests
OtherCopyright © 2020 INPEX CORPORATION. All rights reserved.

12

Differences between Consolidated Financial Forecasts
and Actual Results for the six months ended June 30, 2020

 Assumptions
1st half(May 12, 2020)(Previous Forecasts)

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

40.4

Exchange rate (yen/US$)

109.5

1st half(August 6, 2020)(Actual Results)

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

42.1

Exchange rate (yen/US$)108.3

 Differences between Consolidated Financial Forecasts and Actual Results for the six
months ended June 30, 2020
Previous Forecasts(May 12, 2020)

Actual Results

Change% Change

Net Sales (billions of yen)

408.0

391.6

(16.3)(4.0%)

Operating income (billions of yen)

133.0

123.7

(9.2)

(6.9%)

Ordinary income (billions of yen)

145.0

149.2

4.2

2.9%

Net income (loss) attributable to owners ofparent (billions of yen)

35.0

(120.7)(155.7)‐Copyright © 2020 INPEX CORPORATION. All rights reserved.

13

Revisions of Financial Forecasts
for the year ending December 31, 2020

 Assumptions
1st half (Jan‐Jun)

2nd half (Jul‐Dec)

Full year

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

40.4

30.0

35.2

Exchange rate (yen/US$)

109.5

110.0

109.7

1st half (Jan‐Jun)

2nd half (Jul‐Dec)

Full year

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

42.1

40.0

41.1

Exchange rate (yen/US$)

108.3

105.0

106.6

(May 12, 2020)(August 6, 2020)

 Financial Forecasts for the year ending December 31, 2020
Previous forecasts(May 12, 2020)

Revised forecasts(August 6, 2020)

Change% Change

Net sales (billions of yen)

710.0

730.0

20.0

2.8%

Operating income (billions of yen)

172.0

203.0

31.0

18.0%

Ordinary income (billions of yen)

163.0

200.0

37.0

22.7%

Net income (loss) attributable to owners ofparent (billions of yen)

10.0

(136.0)(146.0)‐ Dividend per share
End of 2Q

End of fiscal year
(forecast)

Full year(forecast)¥12.00¥12.00¥24.00

Copyright © 2020 INPEX CORPORATION. All rights reserved.

14Analysis of Income before One‐off Profit (Loss) Increase(Billions of Yen)
Crude Oil Price (Brent) Assumptions (US$/bbl)
1st half 2nd half Full year
May 12 Forecast 40.4
30
35.2
Aug 6 Forecast
42.1
40
41.1

* Income before one‐off profit (loss)= Net income (loss) attributable to owners of parent − one‐off profit (loss)
Exchange Rate Assumptions (Yen/US$)
1st half 2nd half Full year
May 12 Forecast
109.5
110
109.7
Aug 6 Forecast
108.3
105
106.6

17.7
7.7

Reversal of Loss on Valuationof investment securities at 1stQuarter10.0Copyright © 2020 INPEX CORPORATION. All rights reserved.

15

Analysis of Impact of One‐off Profit (Loss)(Billions of Yen)
* Income before one‐off profit (loss)= Net income (loss) attributable to owners of parent − one‐off profit (loss)

PreludeEagle Ford
LuciusBayu‐Undan(130.8)(33.6)(18.9)(8.9)

1st half 14.0
2nd half (8.0)

Copyright © 2020 INPEX CORPORATION. All rights reserved.

16