Financial Result for the three months ended
March 31, 2020 Support Material

INPEX CORPORATION
May 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, developmentand 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.

Copyright © 2020 INPEX CORPORATION. All rights reserved.

1Comparison reference for 1Q FY2020/12 results

Due to the change in INPEX’s accounting period to the January to December period from the April to March period, this support materialcompares 1Q FY2020/12 with the corresponding period of the previous year (Jan.‐Mar.’19) for reference.
(Reference) same period last year is as follows;< (Reference) Corresponding period of the previous year (Jan.‐Mar. 2019) compared with 1Q
FY2020/12 (1) >(Reference)
Corresponding period of2019

the previous year

Jan‐MarApr‐Jun2020
Jul‐Sep

Oct‐Dec

Jan‐MarApr‐Jun

Jul‐Sep

Oct‐DecINPEX and subsidiaries formerly with provisional
settlements of accounts(2)2019/12

Subsidiaries formerly with a December 31 fiscal year‐end(3)1Q

2020/12

1 The figures are unaudited figures for reference purposes only
2 INPEX, major domestic subsidiaries and overseas subsidiaries with provisional settlements of accounts. Subsidiaries with a December 31 fiscal year‐end that provisionally settled
their accounts on March 31 due to the relatively large impact of their performance on the Company’s consolidated financial accounts.
3 Subsidiaries adopting an accounting period from January to December. See P3 (consolidated subsidiaries and equity‐method affiliates) for specific examples of subsidiaries formerly
with provisional settlements of accounts and subsidiaries formerly with a December 31 fiscal year‐end

Copyright © 2020 INPEX CORPORATION. All rights reserved.

2

Subsidiaries and Affiliates
65 consolidated subsidiaries
Major subsidiaries

Country/region

OwnershipStage

Accounting term

Japan Oil Development Co., Ltd. ※

UAE

100%

Production

December

JODCO Onshore Limited

UAE51 %

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%

Production

December

INPEX Eagle Ford, LLC

USA

100%

Production

December

20 equity method affiliates
OwnershipStage

Accounting term

MI Berau B.V.

Major affiliates

Indonesia

Country/region

44%

Production

DecemberAngola Block 14 B.V.

Angola49.99%

Production

DecemberIchthys LNG Pty Ltd ※Australia

66.245%

ProductionDecember※Subsidiaries formerly with provisional settlements of accounts

Copyright © 2020 INPEX CORPORATION. All rights reserved.

3

Highlights of the Consolidated Financial Results
for the three months ended March 31, 2020
(Reference)
Corresponding periodof the previous year
(Jan.‐Mar.’ 19)

Net sales(Billions of yen)

1Q FY2020(Jan. ‐ Mar. ’20)

Change%Change

269.2

249.6

(19.5)(7.3%)

Crude oil sales

199.1

163.0

(36.1)(18.1%)Natural gas sales (including LPG)

64.2

82.1

17.9

27.9%

Others

5.74.4(1.3)(22.8%)

Operating income (Billions of yen)

120.7

100.8(19.8)(16.5%)

Ordinary income (Billions of yen)

134.2

107.7

(26.5)(19.8%)Net income attributable toowners of parent (Billions of yen)

49.2

33.5

(15.7)(31.9%)Net income per share (Yen)

33.76

22.99

(10.77)(31.9%)

Average number of INPEX shares issued and outstanding during the three months ended March 31, 2020: 1,460,201,920

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

63.83

50.82

Average exchange rate (¥/$)

110.23108.91△ 13.01(20.4%)

1.32yen

1.2%appreciation

appreciation

Copyright © 2020 INPEX CORPORATION. All rights reserved.

4

Crude Oil Sales(Reference)
Corresponding
period of theprevious year
(Jan.‐Mar.’ 19)

1Q FY2020(Jan. ‐ Mar. ’20)

Change%Change

Net sales (Billions of yen)

199.1

163.0

(36.1)(18.1%)

Sales volume (thousand bbl)

28,34828,261(87)(0.3%)

Average unit price of overseas
production ($/bbl)

63.65

52.81

(10.84)(17.0%)

Average unit price of domestic
production (¥/kl)

44,00940,526(3,483)(7.9%)

Average exchange rate (¥/$)

110.39109.16

1.23yenappreciation

1.1%
appreciation

Change%Change

Sales volume by region(Reference)
Corresponding periodof the previous year
(Jan.‐Mar.’ 19)(thousand bbl)

1Q FY2020(Jan. ‐ Mar. ’20)

200176(24)(31.8 thousand kl)(28.0 thousand kl)(‐3.8 thousand kl)

Asia & Oceania

3,054

4,058

1,004

32.9%

Eurasia (Europe & NIS)

3,949

3,831(117)(3.0%)

Middle East & Africa

20,97919,240(1,740)(8.3%)

Americas

166

956

790

475.2%

28,34828,261(87)(0.3%)

JapanTotal
Copyright © 2020 INPEX CORPORATION. All rights reserved.

(12.0%)

5

Natural Gas Sales (excluding LPG)
(Reference)
Corresponding period of
the previous year
(Jan.‐Mar.’ 19)

1Q FY2020

Change(Jan. ‐ Mar. ’20)

%Change

Net sales (Billions of yen)

63.6

81.2

17.6

27.7%

Sales volume (million cf)

87,020121,252

34,231

39.3%

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

3.78

4.63

0.85

22.5%

Average unit price of domestic sales(¥/m3)

58.11

50.69

(7.42)(12.8%)

Average exchange rate (¥/$)

110.47109.171.30yenappreciation

1.2%
appreciation

Change%Change

Sales volume by region (million cf)(Reference)
Corresponding period of
the previous year
(Jan.‐Mar.’ 19)

1Q FY2020(Jan. ‐ Mar. ’20)

Asia & Oceania

23,941(641million ㎥*)
53,45723,455(628million ㎥*)
90,207△ 486(‐13million ㎥*)
36,750Eurasia (Europe & NIS)

2,571

2,716

145

5.6%

Middle East & Africa‐‐‐‐Americas

7,051

4,873

(2,178)(30.9%)

87,020121,252

34,231

Japan

Total

(2.0%)
68.7%

39.3%*1m3=41.8605MJ

Copyright © 2020 INPEX CORPORATION. All rights reserved.

6Analysis of Net Sales Decrease(Billions of Yen)

350

13.5

300

Crude Oil(33.7)

Natural Gas (including LPG)

+4.3

250(29.3)

200

Crude Oil(0.6)

Natural Gas (including LPG)

+14.1

Crude Oil(1.8)

Natural Gas (including LPG)

(0.6)

(2.4)

(1.3)

150

269.2

249.6

100
50
0(Reference)
Increase in
Corresponding period ofSales
Volumethe previous year
(Jan.‐Mar.’ 19)

Copyright © 2020 INPEX CORPORATION. All rights reserved.

Decrease in
Unit Price

Exchange rate
(appreciation of Yen)

Others1Q FY2020(Jan. ‐ Mar. ’20)
7

Statement of Income(Billions of Yen)

(Reference)
Corresponding periodof the previous year
(Jan.‐Mar.’ 19)

1Q FY2020(Jan. ‐ Mar. ’20)

Change%Change

Net sales

269.2

249.6

(19.5)(7.3%)

Cost of sales

122.1

129.2

7.1

5.8%

Gross profit

147.0

120.3

(26.6)(18.1%)

Exploration expenses

8.1

0.9

(7.2)

(89.0%)

Selling, general andadministrative expenses

18.0

18.5

0.4

2.7%

Operating income

120.7

100.8(19.8)(16.5%)

Other income

23.1

25.7

2.6

11.4%

Other expenses

9.6

18.9

9.2

96.0%

Ordinary income

134.2

107.7

(26.5)(19.8%)

Extraordinary loss
(Impairment loss)

5.5‐(5.5)(100.0%)Total income taxes

87.6

75.3

(12.3)(14.1%)Net income (loss) attributable
to non‐controlling interests

(8.2)

(1.1)

7.0

(86.1%)Net income attributable toowners of parent

49.2

33.5

(15.7)(31.9%)

Increase in sales volume :Decrease in unit price :+13.5(29.3)

Exchange rate
(Appreciation of yen) :Others :

(2.4)
(1.3)

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

76.6
(5.3)
49.1
+13.8

Main factors for change :Foreign exchange gain

+3.2

Equity in earnings of affiliates+1.0

Gain on reversal of allowance forrecoverable accounts under production
sharing(1.4)
Main factor for change :Loss on valuation of investment securities+9.2

Copyright © 2020 INPEX CORPORATION. All rights reserved.

8

Other Income/Expenses(Billions of Yen)

(Reference)
Corresponding periodof the previous year
(Jan.‐Mar.’ 19)

1Q FY2020(Jan. ‐ Mar. ’20)

Change%Change

Other income

23.1

25.7

2.6

11.4%

Interest income

0.7

0.4(0.3)(41.6%)

Dividend income

4.4

4.5

0.1

2.4%

Equity in earnings of affiliates

14.1

15.2

1.0

7.4%

Gain on reversal of allowance for recoverable accounts
under production sharing

1.4‐

(1.4)

(100.0%)

‐

3.2

3.2

‐

Other

2.2

2.2

(0.0)

(0.9%)

Other expenses

9.6

18.9

9.2

96.0%

Interest expense

6.3

6.0(0.3)(5.5%)

‐

1.6

1.6

‐

0.2

‐

(0.2)

(100.0%)

‐

9.2

9.2

‐

Foreign exchange loss

1.8

‐

(1.8)

(100.0%)

Other

1.2

2.0

0.7

63.1%

Foreign exchange gain

Provision for allowance for recoverable accounts under
production sharing
Provision for exploration projects
Loss on valuation of investment securities

Copyright © 2020 INPEX CORPORATION. All rights reserved.

9

Net income analysis(億円)(Billions of Yen)
70

13.5
60

50

49.2
12.3

40

33.5
30(29.3)

(2.4)

(1.3)

20(7.0)

5.5

4.4
(0.4)

(3.7)

(7.1)

100

Net income
attributableto ownersof parent

Increasein Sales
volumeDecrease in Exchange rate
Unit price (Appreciationof Yen)

(Reference)
Corresponding period of
the previous year
(Jan.‐Mar.’ 19)

OthersIncrease in Decrease inExploration
Cost ofexpenses andsales
Allowance forexploration*Net Sales

IncreaseinSG&A

OtherExtraordinary Decrease in Net income Net income(loss)
incomeloss
attributable
incomeand expenses (Impairmentto owners
tax payable attributable
to non‐controlling of parentloss)
interests
1Q FY2020(Jan. ‐ Mar. ’20)

*Provision for (gain on reversal of) allowance for recoverable accounts under production sharing and Provision for exploration projects

Copyright © 2020 INPEX CORPORATION. All rights reserved.

10

Revised Financial Forecasts for the year ending
December 31, 2020‐ Assumptions

1st half(Jan. – Jun. ‘20)

2nd half(Jul. – Jun. ‘20)

Full year

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

60.0

60.0

60.0

Exchange rate (yen/US$)

110.0

110.0

110.0

1st half(Jan. – Jun. ‘20)

2nd half(Jul. – Jun. ‘20)

Full year

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

40.4*1

30.0

35.2

Exchange rate (yen/US$)

109.5*2

110.0

109.7

(Feb 12, 2020)(May 12, 2020)*1 1st quarter (Actual) : US$ 50.8/bbl, 2nd quarter (Forecast) : US$30.0/bbl‐ Financial Forecasts
for the year ending December 31, 2020

Previous forecasts(Feb 12, 2020)*2 1st quarter (Actual) : ¥108.9/US$, 2nd quarter (Forecast) : ¥110.0/US$

Revised forecasts(May 12, 2020)

Change% Change

1,204.0710.0(494.0)(41.0%)

Operating income (billions of yen)

499.0

172.0

(327.0)(65.5%)

Ordinary income (billions of yen)

536.0

163.0

(373.0)(69.6%)Net income attributable to owners ofparent (billions of yen)

145.0

10.0

(135.0)(93.1%)Net sales (billions of yen)

606.0

408.0

(198.0)(32.7%)

Operating income (billions of yen)

257.0

133.0

(124.0)(48.2%)

Ordinary income (billions of yen)

272.0

145.0

(127.0)(46.7%)Net income attributable to owners ofparent (billions of yen)

70.0

35.0

(35.0)(50.0%)Net sales (billions of yen)

‐ Financial Forecasts for the six months ending June 30, 2020

Copyright © 2020 INPEX CORPORATION. All rights reserved.

11

Appendix

LPG Sales(Reference)
Corresponding periodof the previous year
(Jan.‐Mar.’ 19)

1Q FY2020(Jan. ‐ Mar. ’20)

Change%Change

Net sales (Billions of yen)

0.6

0.9

0.2

44.5%

Sales volume (thousand bbl)

72

118

46

64.3%

Average unit price of overseas
production ($/bbl)

45.02

36.57

(8.45)(18.8%)

Average unit price of domesticproduction (¥/kg)

67.65

69.15

1.50

2.2%

Average exchange rate (¥/$)

110.34108.84

1.50yenappreciation

1.4%
appreciation

Change%Change(Reference)
Corresponding periodof the previous year
(Jan.‐Mar.’ 19)

Sales volume by region(thousand bbl)

1Q FY2020(Jan. ‐ Mar. ’20)

11(0)(0.1 thousand ton)

(0.1 thousand ton)(‐0.0 thousand ton)

Asia & Oceania

71118

46

65.2%

Eurasia (Europe & NIS)‐‐‐‐

Middle East & Africa‐‐‐‐

Americas‐‐‐‐

721184664.3%

Japan

Total

Copyright © 2020 INPEX CORPORATION. All rights reserved.

(19.4%)

13

Balance Sheet(Billions of yen)Dec. ’19

Current assets

Mar. ’20

Change%Change

419.8

386.2

(33.5)(8.0%)

2,275.3

2,249.1(26.1)(1.2%)

Intangible assets

535.3

527.9

(7.3)

(1.4%)

Recoverable accounts under
production sharing

568.3

568.2

(0.1)

(0.0%)

Other

1,118.0

1,059.6(58.3)(5.2%)

Less allowance for recoverable
accounts under production sharing(66.8)(68.5)

(1.6)

2.4%

Total assets

4,849.9

4,722.7(127.2)(2.6%)

Current liabilities

401.4

361.3

(40.1)(10.0%)

Long‐term liabilities

1,151.3

1,122.6(28.6)(2.5%)

Total net assets

3,297.1

3,238.7(58.4)(1.8%)(Non‐controlling interests)

256.4

252.6

(3.7)

(1.5%)

Total liabilities and net assets

4,849.9

4,722.7(127.2)(2.6%)Net assets per share (Yen)2,082.43

2,044.98(37.45)(1.8%)

Tangible fixed assets

Summary of financial informationfor Ichthys downstream JV (100%basis, including the Company’s
equity share 66.245%)(Billions of yen)
• Current assets : 188.2• Fixed assets : 3,688.3• Total assets:3,876.5※Fixed assets include interest
expense which are not included in
CAPEX, and capitalized costs before
FID.

The total of long‐term loans, shortterm loans and commercial papers is
1.1trillion yen.
Adding the off‐balanced net loans of
the Ichthys IJV(as of Mar. 2020) brings
the total of INPEX net loans to be 2.3
trillion yen (Mar. 2020).

Total shareholders’ equity ： +7.2
Accumulated other comprehensive
income (Billions of yen) : (61.9)• Unrealized gain (loss) fromhedging instruments : (45.7)• Translation adjustments : (11.9)

Copyright © 2020 INPEX CORPORATION. All rights reserved.

14

Net Production* (Jan. 2020 – Mar. 2020)
Crude Oil/Condensate/LPG
3% 1%

9312%

Total
3%

372 thousand bbl/day

46574%

613 thousand BOE/day

19 26

15%
Japan
Asia/Oceania

257

42%

256250Japan

41%

Eurasia

Eurasia

Middle East/Africa

69%

Asia/Oceania

62

Middle East/Africa

AmericasAmericas

10%Total

Natural Gas
2% 4%

10%50 121
29613 thousand BOE/day

1,260 million cf/day(241 thousand BOE/day)
39%
JapanAsia/Oceania

1,060

241372Eurasia

61%

Americas84%•OiｌNatural Gas

The production volume of crude oil and natural gas under the production sharing contracts corresponds to the net economic take of the INPEX Group.

Copyright © 2020 INPEX CORPORATION. All rights reserved.

15

Crude Oil Price Movements(US$/bbl)
90

Brent

80

WTIDubai

70
60
50403020100Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan. Feb. Mar.

2017
Jan.–Mar.
2019

2019
Jan.

Feb.

2019

2018

Mar.

Average

2020

2019
Apr.

May.

Jun.

Jul.

Aug.

Jan. –Mar.
2020

2020
Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Average

Brent

60.24

64.43

67.03

63.90

71.63

70.30

63.04

64.21

59.50

62.29

59.63

62.71

65.17

63.67

55.48

33.73

50.96

WTI

51.55

54.98

58.17

54.90

63.87

60.87

54.71

57.55

54.84

56.97

54.01

57.07

59.80

57.53

50.54

30.45

46.17

Dubai

59.0864.57

66.93

63.53

70.95

69.38

61.76

63.25

59.11

61.12

59.37

61.97

64.89

64.29

54.22

33.70

50.74

Copyright © 2020 INPEX CORPORATION. All rights reserved.

16