Financial Results for the year ended March 31, 2016
Support Material

INPEX CORPORATION
May 12, 2016

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‐lookinginformation) after the date of this presentation.
1

Highlights of the Consolidated Financial Results
for the year ended March 31, 2016
Apr. ‘14 ‐ Mar. ‘15

Apr. ‘15 ‐ Mar. ‘16

1,171.2

1,009.5(161.6)(13.8%)

Crude oil sales

730.4

679.2

(51.1)(7.0%)Natural gas sales (including LPG)

421.8

316.7

(105.0)(24.9%)

Others

18.9

13.5

(5.3)

(28.4%)

Operating income (Billions of yen)

534.8

390.1

(144.7)(27.1%)

Ordinary income (Billions of yen)

575.1

374.7

(200.3)(34.8%)Net income attributable toowners of parent (Billions of yen)

77.8

16.7(61.0)(78.4%)Net income per share (Yen)

53.29

11.49(41.8)(78.4%)Net sales(Billions of yen)

Change%Change

Average number of INPEX shares issued and outstanding during the year ended March 31, 2016: 1,460,357,200

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

86.57

48.73

(37.84)(43.7%)

Average exchange rate (¥/$)

109.77120.1510.38 yen

9.5% yendepreciation

depreciation2

Crude Oil Sales
Apr. ‘14 ‐ Mar. ’15

Apr. ‘15 ‐ Mar. ’16

Net sales (Billions of yen)

730.4

679.2

(51.1)(7.0%)

Sales volume (thousand bbl)

80,558117,227

36,66945.5%

Average unit price of overseasproduction ($/bbl)

84.00

47.95

(36.05)(42.9%)

Average unit price of domestic
production (¥/kl)

61,08038,259(22,821)(37.4%)

Average exchange rate (¥/$)

107.79120.7412.95 yendepreciation

12.0% yendepreciation

Apr. ‘14 ‐ Mar. ’15

Apr. ‘15 ‐ Mar. ’16

Change%ChangeJapan791(125.8 thousand kl)

741(117.8 thousand kl)(50)(‐8.0 thousand kl)(6.4%)

Asia & Oceania

11,015

13,505

2,489

22.6%

Eurasia (Europe & NIS)

9,946

11,666

1,721

17.3%

Middle East & Africa

58,77389,48630,71452.3%

Americas

33

1,829

1,796

‐

80,558117,227

36,66945.5%

Sales volume by region(thousand bbl)

Total
3

Change%Change

Natural Gas Sales (excluding LPG)
Apr. ‘14 ‐ Mar. ‘15

Apr. ‘15 ‐ Mar. ‘16

Net sales (Billions of yen)

401.3

306.2

(95.1)(23.7%)

Sales volume (million cf)

309,485

337,216

27,731

9.0%

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

11.36

6.58

(4.78)(42.1%)

Average unit price of domestic
sales (¥/m3)

57.56

52.29

(5.27)(9.2%)

Average exchange rate (¥/$)

108.26119.9511.69 yen
depreciation

10.8% yendepreciation

Sales volume by region (million cf)

Apr. ‘14 ‐ Mar. ‘15

Apr. ‘15 ‐ Mar. ‘16

Change%ChangeJapan66,679(1,787 million m3*)

65,304(1,750 million m3*)

(1,374)(‐37 million m3*)

(2.1%)

Asia & Oceania

204,231238,759

34,52816.9%

Eurasia (Europe & NIS)‐‐‐‐

Middle East & Africa‐‐‐‐

Americas38,57533,153(5,423)(14.1%)

309,485

337,216

27,731

9.0%

Apr. ‘14 ‐ Mar. ’15

Apr. ‘15 ‐ Mar. ’16

Change20.5

10.5

TotalChange%Change(FYI) LPG Sales

4Net Sales (Billions of yen)

(9.9)

%Change(48.6%)*1m3=41.8605MJ

Analysis of Net Sales Decrease(Billions of Yen)

1,800

Crude Oil(455.5)

Natural Gas (including LPG)

(157.2)

362.1

1,600
1,400

Crude Oil+72.3

Natural Gas (including LPG) +22.0

1,200

94.4
1,000(612.8)

800
600

1,171.2

Crude Oil+331.9

Natural Gas (including LPG)

+30.1(5.3)

1,009.540020005Net Sales
Increase inApr. ‘14 ‐ Mar. ‘15 Sales Volume

Decrease in
Exchange rate
Unit Price (Depreciation of Yen)

OthersNet Sales
Apr. ‘15 ‐ Mar. ’16

Statement of Income(Billions of Yen)

Apr. ‘14 ‐ Mar. ’15 Apr. ‘15 ‐ Mar. ’16

Change%Change

1,171.2

1,009.5(161.6)(13.8%)

Cost of sales

525.4

526.7

1.3

0.3%

Gross profit

645.7

482.8

(162.9)(25.2%)

Exploration expenses

23.2

6.1

(17.0)(73.5%)Net sales

Selling, general andadministrative expenses

87.6

86.5

(1.1)

(1.3%)

Operating income

534.8

390.1

(144.7)(27.1%)

Other income

101.7

69.9

(31.8)(31.3%)

Other expenses

61.4

85.3

23.838.7%

Ordinary income

575.1

374.7(200.3)(34.8%)

Extraordinary loss
(Impairment loss)

35.1

45.8

10.7

30.6%

Total income taxes

464.4

354.3

(110.0)(23.7%)Net income (loss) attributable
to non‐controlling interests(2.2)(42.2)(40.0)‐

Increase in Sales volume :Decrease in Unit price :Exchange rate
(Depreciation of Yen) :Others :Cost of sales for
Crude Oil :(Change)
Cost of sales for
Natural gas* :(Change)* Including LPG+362.1(612.8)
+94.4
(5.3)

344.1
+35.6
170.7
(31.3)

Main factors;

Net income attributable toowners of parent
677.8

16.7(61.0)(78.4%)

Decrease in Gain on transfer of mining
rights, etc.
(26.7)
Foreign exchange gain

(16.5)

Gain on sales of marketable securities+7.8
Main Factors;
Provision for allowance for recoverable
accounts under production sharing+5.5
Equity in losses of affiliates+7.2
Loss on disposal of fixed assets+7.0
Main factors of Impairment loss for thecurrent period;
Lucius Oil Field:

26.4

JPDA06‐105 Block in the Timor Sea Joint
Petroleum Development Area (JPDA) : 7.4

Other Income/Expenses(Billions of Yen)

7Apr. ‘14 ‐ Mar. ‘15 Apr. ‘15 ‐ Mar. ‘16

Change%Change

Other income

101.7

69.9(31.8)(31.3%)

Interest income

11.2

10.7(0.4)(4.2%)

Dividend income

6.6

10.8

4.1

62.3%

Gain on sales of marketable securities

18.1

25.9

7.8

43.2%

Foreign exchange gain

19.5

2.9(16.5)(84.8%)

Other

46.1

19.4

(26.7)(58.0%)

Other expenses

61.4

85.3

23.8

38.7%

Interest expense

2.9

4.1

1.2

42.5%

Equity in losses of affiliates

13.4

20.6

7.2

53.9%

Provision for allowance for recoverable accounts
under production sharing

19.4

25.0

5.5

28.7%

Provision for exploration projects

0.8

0.3(0.4)(59.9%)

Loss on disposal of fixed assets

6.2

13.2

7.0

112.3%

Other

18.5

21.7

3.1

17.2%

Analysis of Net Income Decrease(億円)(Billions of Yen)
500

362.1
Main Factors;

400‐ Decrease in Gain on transfer of mining rights, etc. (26.7)‐ Decrease in Foreign exchange gain

300(16.5)

200
100

77.8
110.0

094.4
‐100(5.3)

8

Net income
attributableto ownersof parent
Apr.14 –Mar. ‘15Increasein Sales
volumeDecrease in
Unit priceExchange rate
(Depreciationof yen)

Net Sales

Others(1.3)

Increase in
Cost ofsales

16.7

1.1
(50.5)(612.8)‐200‐300

11.9

40.0

Decrease in Decrease
Explorationin
expenses andSG&A
Allowance for
exploration*(10.7)Net income Net income
Extraordinary Decrease in
Otherincome(loss)
attributable
loss
incometax
payableattributableto owners(Impairmentand expenses
to non‐controlling of parent
loss)
interests
Apr.15 –Mar. ‘16*Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects

Balance Sheet(Billions of yen)Mar. ’15

Mar. ’16

Change%Change

Current assets

1,342.4

984.3(358.0)(26.7%)

Tangible fixed assets

1,497.6

1,752.6

254.9

17.0%

Intangible assets

458.7

541.4

82.7

18.0%

Recoverable accounts underproduction sharing

703.2

727.7

24.4

3.5%

Other

618.7

495.4

(123.3)(19.9%)

Less allowance for recoverable
accounts under production sharing(121.7)(131.7)(10.0)

8.3%

Total assets

4,499.1

4,369.8(129.3)(2.9%)

Current liabilities

365.2

319.1

(46.0)(12.6%)

Long‐term liabilities

845.2

871.9

26.6

3.2%

3,288.7

3,178.8(109.9)(3.3%)(Non‐controlling interests)

222.0

245.9

23.8

10.8%

Total liabilities and net assets

4,499.1

4,369.8(129.3)(2.9%)Net assets per share (Yen)2,099.95

2,008.34(91.61)(4.4%)

Total net assets

9

Available fund (Billions of yen)992.8*Breakdown• Cash and deposits:
772.5• Long‐term time deposits : 202.8• Available investment securities :17.5*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 :46.8• Fixed assets :2,604.1• Total assets:
2,651.0
Accumulated other comprehensive
income (Billions of yen) : (121.2)
・Unrealized holding gain on
securities: (41.0)
・Unrealized loss fromhedging instruments :+29.7
・Translation adjustments: (109.9)

Statement of Cash Flows(Billions of Yen)

Apr. ‘14 ‐ Mar. ‘15

Apr. ‘15 ‐ Mar. ‘16

Change%Change

Income before income taxes

540.0

328.8

(211.1)(39.1%)

Depreciation and amortization

52.5

86.7

34.2

65.3%

Recovery of recoverable accounts under production sharing (capital expenditures)

75.5

64.1

(11.3)(15.1%)

Recoverable accounts under production sharing (operating expenditures)(60.7)(45.8)

14.9(24.6%)

Income taxes paid

(478.8)(393.5)85.2(17.8%)

Other

88.2

143.2

55.0

62.3%

Net cash provided by (used in) operating activities

216.7

183.7

(33.0)(15.2%)

Payments for time deposits/Proceeds from time deposits

372.1

245.9

(126.1)(33.9%)

Payments for long‐term time deposits/Proceeds from long‐term time deposits(112.1)(439.9)(327.8)292.2%

Payments for purchases of tangible fixed assets(448.3)(476.7)(28.4)

6.3%

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

256.6

196.4

(60.2)(23.5%)

Investment in recoverable accounts under production sharing (capital expenditures)(70.4)(60.4)

9.9(14.2%)

Long‐term loans made / Collection of long‐term loans receivable(111.1)

169.0

280.1

‐

Payments for purchases of mining rights(18.4)(134.5)(116.0)

‐

Other

50.6

(43.1)(93.8)‐Net cash provided by (used in) investing activities(81.0)(543.5)(462.4)‐

Net cash provided by (used in) financing activities

(4.1)

156.7

160.9

‐

Cash and cash equivalents at end of the period

260.9

53.8

(207.1)(79.4%)

10

Financial Indices
Equity Ratio**

Net Debt/Total Capital Employed (Net)*
Mar.ʹ15

Mar.ʹ16(16.8%)(8.1%)*

D/E Ratio***22.1%

Mar.ʹ151125.3%

Mar.ʹ16

*****

68.2%

67.1%

Mar.ʹ15Mar.ʹ16Net Debt/Total Capital Employed (Net) = (Interest‐bearing debt ‐ Cashand deposits ‐ Public and corporate bonds and other debt securities(with determinable value) – CP etc. – Long term time deposits)/(Netassets + Interest‐bearing debt ‐ Cash and deposits ‐ Public andcorporate bonds and other debt securities (with determinable value) –CP etc.– 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, 2017
1st Half

2nd Half

Full year

Brent oil price ($/bbl)

45.0

45.0

45.0

Average exchange rate (¥/$)

110.0

110.0

110.0

Mar. ‘16(Actual)Mar. ‘17(Forecasts)

Full YearNet Sales (Billions of yen)

Change% Change

1,009.5808.0(201.5)(20.0%)

Operating Income (Billions of yen)

390.1

238.0

(152.1)(39.0%)

Ordinary Income (Billions of yen)

374.7

237.0

(137.7)(36.8%)Net income attributable to owners ofparent (billions of yen)

16.717.00.2

1.3%

Net Sales (Billions of yen)

567.0

389.0

(178.0)(31.4%)

Operating Income (Billions of yen)

246.7

118.0(128.7)(52.2%)

Ordinary Income (Billions of yen)

258.8

118.0

(140.8)(54.4%)Net income attributable to owners ofparent (billions of yen)

45.4

8.0

(37.4)(82.4%)

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, 2017
Mar. ’16(Actual)

Change% Change

Sales Volume

Crude oil (thousand bbl)1117,227

123,334

6,107

5.2%

Natural gas (million cf)2

337,216

333,192(4,024)(1.2%)

Overseas271,912259,907(12,005)(4.4%)

Japan

65,304(1,750 million m3)

73,286(1,964 million m3)

7,981(214million m3)

12.2%

2,361

1,788(573)(24.3%)LPG (thousand bbl)3(Billions of yen)Mar. ‘16(Actual)Mar. ‘17(Forecasts)

Change% Change

Development expenditure4

880.0

667.0

(213.0)(24.2%)

Other capital expenditure

51.8

11.0(40.8)(78.8%)

Exploration expenditure

39.3

17.0(22.3)(56.7%)

10.6(20.9)(66.3%)

11.4(8.9)(43.8%)

Exploration expenses andProvision for explorations5(Non‐controlling Interests Portion)613Mar. ‘17(Forecasts )Exploration expenses 6.1
Provision for explorations
25.3

31.5
20.3

Exploration expenses 5.1
Provision for explorations
5.5

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”
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, 2017 (Note 1)(Billions of yen)

 Brent Crude Oil Price; $1/bbl increase(decrease) (Note 2)+2.9 (‐2.9)

 Exchange Rate; ¥1 depreciation(appreciation) against the U.S. dollar (Note 3)+1.3 (‐1.3)(Note1) The sensitivities represent the impact on net income for the year ending March 31, 2017 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