Financial Results for the year ended March 31, 2018
Support Material

INPEX CORPORATION
May 10, 2018

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, 2018
Apr. ‘16 ‐ Mar. ‘17

Apr. ‘17 ‐ Mar. ‘18

874.4

933.7

59.2

6.8%

Crude oil sales

617.1

710.2

93.0

15.1%

Natural gas sales (including LPG)

242.5

208.1

(34.4)(14.2%)

Others

14.6

15.3

0.6

4.6%

Operating income (Billions of yen)

336.4

357.3

20.9

6.2%

Ordinary income (Billions of yen)

333.8

387.2

53.3

16.0%

Net income attributable toowners of parent (Billions of yen)

46.1

40.3

(5.8)

(12.6%)Net income per share (Yen)

31.61

27.64(3.97)(12.6%)

7.97

16.0%

2.48yen2.3%

depreciation

depreciation

Net sales(Billions of yen)

Change%Change

Average number of INPEX shares issued and outstanding during the year ended March 31, 2018: 1,460,357,100

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

49.88

57.85

Average exchange rate (¥/$)

108.38110.86

2Crude Oil Sales
Apr. ‘16 ‐ Mar. ’17

Apr. ‘17 ‐ Mar. ’18

617.1

710.2

93.0

15.1%

Sales volume (thousand bbl)

122,207

112,882(9,325)(7.6%)

Average unit price of overseas
production ($/bbl)

46.41

56.30

9.89

21.3%

Average unit price of domesticproduction (¥/kl)

35,99742,143

6,146

17.1%

Average exchange rate (¥/$)

108.67111.352.68yendepreciation

2.5%
depreciation

Apr. ‘16 ‐ Mar. ’17

Apr. ‘17 ‐ Mar. ’18

Change%Change

Net sales (Billions of yen)

Sales volume by region(thousand bbl)

%Change

90094041(143.0 thousand kl)(149.5 thousand kl)(+6.5 thousand kl)

Asia & Oceania

12,2466,554(5,692)(46.5%)

Eurasia (Europe & NIS)

11,336

13,266

1,930

17.0%

Middle East & Africa

95,49590,412(5,083)(5.3%)

Americas

2,230

1,710(521)(23.3%)

122,207

112,882(9,325)(7.6%)

JapanTotal
3

Change4.5%

Natural Gas Sales (excluding LPG)
Apr. ‘16 ‐ Mar. ‘17

Apr. ‘17 ‐ Mar. ‘18

Net sales (Billions of yen)

235.7

202.0

(33.7)(14.3%)

Sales volume (million cf)

342,994

264,816(78,178)(22.8%)

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

5.19

5.04(0.15)(2.9%)

Average unit price of domestic sales(¥/m3)

43.36

46.36

3.00

6.9%

Average exchange rate (¥/$)

108.38110.702.32yendepreciation

2.1%
depreciation

Apr. ‘16 ‐ Mar. ‘17

Apr. ‘17 ‐ Mar. ‘18

Change%Change

Asia & Oceania

71,295(1,910million ㎥*)
230,183

79,243(2,123million ㎥*)
137,371

7,948(+213million ㎥*)(92,812)(40.3%)

Eurasia (Europe & NIS)

1,947

7,808

5,861

301.0%

Middle East & Africa‐‐‐‐Americas

39,56940,394826

2.1%

342,994

264,816(78,178)

Sales volume by region (million cf)
Japan

Total

Change%Change

11.1%(22.8%)*1m3=41.8605MJ(FYI) LPG Sales

4

Apr. ‘16 ‐ Mar. ’17

Apr. ‘17 ‐ Mar. ’18

6.7

6.0Net Sales (Billions of yen)(Billions of Yen)

1,000

Change(0.7)%Change(10.8%)

Analysis of Net Sales Increase
for the year ended March 31, 2018

Crude Oil

(47.0)Natural Gas (including LPG)

(41.7)

19.3

127.9

900
800

0.6

Crude Oil

16.9

Natural Gas (including LPG)

2.4

(88.7)

700

Crude Oil

123.1

Natural Gas (including LPG)

4.8

600
500
400

933.7

874.4

300
200
10005

Net Sales
Decrease in
Apr. ‘16 ‐ Mar. ‘17 Sales Volume

Increase in
Unit Price

Exchange rate
(Depreciation of Yen)

OthersNet Sales
Apr. ‘17 ‐ Mar. ’18Statement of Income(Billions of Yen)

Apr. ‘16‐ Mar. ’17 Apr. ‘17 ‐ Mar. ’18

Change%Change

59.2

6.8%

Decrease in sales volume :(88.7)

Increase in unit price :+127.9Exchange rate

Net sales

874.4

933.7

Cost of sales

453.8

498.0

44.1

9.7%

Gross profit

420.5

435.6

15.0

3.6%

Exploration expenses

6.7

1.3(5.4)(80.3%)

Selling, general andadministrative expenses

77.3

76.9

(0.4)

(0.5%)

Operating income

336.4

357.3

20.9

6.2%

Other income

39.0

55.2

16.1

41.4%

Other expenses

41.6

25.3

(16.2)(39.1%)

Ordinary income

333.8

387.2

53.3

16.0%

Extraordinary loss
(Impairment loss)

6.3

79.9

73.6

‐

Total income taxes

271.3

309.3

38.0

14.0%

Net income (loss) attributable
to non‐controlling interests

9.9(42.4)(52.4)‐Net income attributable toowners of parent

46.1

40.3

(5.8)

(12.6%)(Depreciation of yen) :+19.3

Others :0.6

Cost of sales for
Crude Oil :(Change)

358.7
+54.3

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

126.1(10.7)

Main factors for change :Gain on reversal of allowance forrecoverable accounts under production
sharing+17.5
Compensation income+12.6

Gain on sales of investment securities(4.9)

Main factors for change :Provision of allowance for doubtfulaccounts(8.3)

Provision for allowance for recoverable
accounts under production sharing(14.3)

Main factor for change :Shale Gas Project in Canada

76.2

6

Other Income/Expenses
Apr. ‘16 ‐Mar. ‘17

Apr. ‘17 ‐Mar. ‘18

Change%Change

Other income

39.0

55.2

16.1

41.4%

Interest income

10.4

6.4(3.9)(38.1%)

Dividend income

2.8

4.7

1.9

70.5%

Gain on sales of investment securities

4.9‐

(4.9)

‐

Equity in earnings of affiliates

2.1

4.1

2.0

92.7%

Gain on reversal of allowance for recoverable
accounts under production sharing

‐

17.5

17.5

‐

Compensation income

‐

12.6

12.6

‐

Other

18.6

9.6

(8.9)

(48.2%)

Other expenses

41.6

25.3

(16.2)(39.1%)

Interest expense

5.2

7.0

1.8

35.3%

Provision of allowance for doubtful accounts

8.3

‐

(8.3)

‐

Provision for allowance for recoverable accounts
under production sharing

14.3

‐

(14.3)

‐

‐

3.2

3.2

‐

Foreign exchange loss

3.7

10.4

6.7

178.6%

Other

9.9

4.5(5.4)(54.4%)(Billions of Yen)

Provision for loss on business

7

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

Mainly attributed to absenceof losses associated with thesale of shares in INPEXNatuna Ltd.

Analysis of Net Income Decrease(億円)(Billions of Yen)
120

19.3

0.6

37.3

100

0.4

Main factors

0.5

・An investment in the consolidated
subsidiary by non‐controllinginterests

127.980

・Posting impairment loss
(Shale Gas Project in Canada)

60(44.1)

46.1

52.4

4040.3Main factors
・Depreciation of yen

20(73.6)

・Increase in royalty

0‐20(38.0)‐40(88.7)‐60

Net income
attributableto ownersof parent
Apr.16 –Mar. ‘17

Decreasein SalesvolumeIncrease in
Unit priceExchange rate
(Depreciationof yen)

OthersIncrease in
Cost ofsales

Decrease in Decrease
Exploration
inexpenses andSG&A
Allowance for
exploration*

Net Sales

8Net income Net income
Extraordinary Increase in
Otherincome(loss)
attributable
loss
incometo owners
and expenses (Impairment tax payable attributableto non‐controlling of parentloss)
interests
Apr.17 –Mar. ‘18*Provision for (gain on reversal of) allowance for recoverable accounts under production sharing

Balance Sheet
Cash and deposits : (376.5)(Billions of yen)
Current assets

Mar. ’17

Mar. ’18

Change%Change

942.9

469.5

(473.3)(50.2%)

1,928.5

2,044.6

116.0

6.0%

Intangible assets

521.2

541.5

20.2

3.9%

Recoverable accounts underproduction sharing

611.9

589.0

(22.8)(3.7%)

Other

424.2

692.3

268.1

63.2%

Less allowance for recoverable
accounts under production sharing(116.8)(81.6)

35.2(30.1%)

Total assets

4,312.1

4,255.5(56.6)(1.3%)

Current liabilities

297.4

309.1

11.7

3.9%

Long‐term liabilities

807.1

787.5

(19.6)(2.4%)

3,207.5

3,158.8(48.6)(1.5%)(Non‐controlling interests)

264.3

242.1

(22.1)(8.4%)

Total liabilities and net assets

4,312.1

4,255.5(56.6)(1.3%)Net assets per share (Yen)

2,015.38

1,997.24(18.14)(0.9%)

Tangible fixed assets

Total net assets

9

Investments in Ichthys LNG
Project and others
Summary of financial informationfor Ichthys downstream JV (100%basis, including the Company’s
equity share 62.245%)(Billions of yen)
• Current assets : 42.7
• Fixed assets : 3,479.7• Total assets:3,522.4※Fixed assets include interest
expense which are not included in
CAPEX, and capitalized costs before
FID.

Total shareholders’ equity ： +11.3
Accumulated other comprehensive
income (Billions of yen) : (37.8)• Unrealized holding gain on
securities : +3.7
• Unrealized gain fromhedging instruments : +25.0• Translation adjustments : (66.6)

Statement of Cash Flows(Billions of Yen)

Apr. ‘16 ‐ Mar. ’17

Apr. ‘17 ‐ Mar. ‘18

Change%Change

Income before income taxes

327.5

307.2

(20.2)(6.2%)

Depreciation and amortization

91.1

92.8

1.6

1.8%

Impairment loss

6.3

79.9

73.6

‐

Recovery of recoverable accounts under production sharing (capital expenditures)

79.8

53.4

(26.4)(33.1%)

Recoverable accounts under production sharing (operating expenditures)

(2.8)

9.6

12.4

‐(292.8)(329.2)(36.3)

12.4%

66.5

64.6

(1.9)

(2.9%)

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

275.8

278.5

2.7

1.0%

Payments for time deposits / Proceeds from time deposits

566.5

333.9

(232.6)(41.1%)

Payments for purchases of tangible fixed assets(278.3)(271.3)7.0(2.5%)

Payments for purchases of investment securities / Proceeds from sales of investment
securities(69.6)(127.7)(58.1)

83.5%

Investment in recoverable accounts under production sharing (capital expenditures)(37.3)(24.1)

13.1(35.3%)

Long‐term loans made / Collection of long‐term loans receivable(133.2)(172.2)(39.0)

29.3%‐(100.9)(100.9)

‐

5.4

10.5

5.1

94.3%

Net cash provided by (used in) investing activities

53.4(351.9)(405.3)‐

Net cash provided by (used in) financing activities(65.4)

34.7

100.1

‐

Cash and cash equivalents at end of the period

316.7

276.0

(40.7)(12.9%)

Payments for purchases of mining rights
Other

10

Financial Indices
Equity Ratio**

Net Debt/Total Capital Employed (Net)*

11.8%

0.9%
Mar.ʹ17Mar.ʹ18*

D/E Ratio********1123.4%

24.0%Mar.ʹ17Mar.ʹ1868.3%

68.5%

Mar.ʹ17Mar.ʹ18

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 timedeposits)
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, 2019
1st Half

2nd Half

Full year

Brent oil price ($/bbl)

65.0

65.0

65.0

Average exchange rate (¥/$)

105.0

105.0

105.0

Mar. ‘18(Actual)Mar. ‘19(Forecasts)

Full Year

Change% Change

Net Sales (Billions of yen)

933.7

860.0

(73.7)(7.9%)

Operating Income (Billions of yen)

357.3

377.0

19.6

5.5%

Ordinary Income (Billions of yen)

387.2

371.0

(16.2)(4.2%)Net income attributable to owners ofparent (billions of yen)

40.3

48.0

7.6

18.9%

Net Sales (Billions of yen)

447.9

384.0

(63.9)(14.3%)

Operating Income (Billions of yen)

185.8

165.0

(20.8)(11.2%)

Ordinary Income (Billions of yen)

195.4

165.0

(30.4)(15.6%)Net income attributable to owners ofparent (billions of yen)

30.1

12.0

(18.1)(60.2%)

2Q End9.0

9.0

FY End

9.0

9.0

TOTAL

18.0

18.0

1st Half

Cash dividends per
share (yen)12(Note) As of the beginning of the fiscal year, the Company expects an ¥18 dividend per common stock in total for the year ending March 31, 2019, andadditionally plans to issue a commemorative dividend of ¥6 per share following the Ichthys LNG Project’s start‐up and shipment of cargo.

Sales and Investment Planfor the year ending March 31, 2019
Mar. ’18(Actual)

Change% Change

Sales Volume

Crude oil (thousand bbl)1

112,882

98,604(14,278)(12.6%)Natural gas (million cf)2

264,816

284,278

19,462

7.3%

Overseas

185,573

201,982

16,408

8.8%

Japan

79,243(2,123 million m3)

82,297(2,205 million m3)

3,053(82 million m3)

3.9%

1,186141(1,045)(88.1%)LPG (thousand bbl)3(Billions of yen)Mar. ‘18(Actual)Mar. ‘19(Forecasts)

Change% Change

Development expenditure4

601.9

326.0(275.9)(45.8%)

Other capital expenditure

3.3

3.0(0.3)(9.1%)

Exploration expenditure

4.9

13.0

8.1

165.3%

13.9

8.6

162.3%

2.2

1.6

266.7%

Exploration expenses andProvision for explorations5(Non‐controlling Interests Portion)613Mar. ‘19(Forecasts )Exploration expenses 1.3
Provision for explorations
3.9

5.3
0.6

Exploration expenses 6.2
Provision for explorations
7.7

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 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, 2019 (Note 1)(Billions of yen)

 Brent Crude Oil Price; $1/bbl increase(decrease) (Note 2) (Note 4)+1.6 (‐1.6)

 Exchange Rate; ¥1 depreciation(appreciation) against the U.S. dollar+1.2 (‐1.2)

(Note 3) (Note 5)(Note1) The sensitivities represent the impact on net income for the year ending March 31, 2019 against a $1 /bbl increase (decrease) of Brent crude oil
price on average basis and a ¥ 1 depreciation (appreciation) against the U.S. dollar. These are based on the financial situation mainly of existingproduction projects at the beginning of the fiscal year. These are for reference purposes only and the actual impact may be subject to change inproduction 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) .
(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. On the otherhand, 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.
(Note4) Following the Ichthys LNG Project’s shipment of cargo, the sensitivities of Brent Crude Oil Price will be approximately double.
(Note5) Following the Ichthys LNG Project’s shipment of cargo, the sensitivities of Exchange Rate will increase approximately 20%.

14