Financial Results for the year ended March 31, 2014
Support Material

INPEX CORPORATION
May 9, 2014

Cautionary Statement
This presentation includes forward‐looking information that reflects the plan and
expectations of the Company. Such forward‐looking information is based on thecurrent assumptions and judgments of the Company in light of the information
currently available to it, and involves known and unknown risk, uncertainties, andother factors. Such risks, uncertainties and other factors may cause the Company’s
performance, achievements or financial position to be materially different from any
future results, performance, achievements or financial position expressed or impliedby 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 the exploration, development
and production
The Company undertakes no obligation to publicly update or revise the disclosureof information in this presentation (including forward‐looking information) after thedate of this presentation.
1

Highlights of the Consolidated Financial Results
for the year ended March 31, 2014
Mar. ‘13
Net Sales(Billions of yen)Mar. ‘14

Change%Change

1,216.5

1,334.6

118.0

9.7%

Crude Oil Sales

788.1

858.7

70.6

9.0%

Natural Gas Sales (including LPG)

397.7

455.4

57.6

14.5%

Others30.6

20.4(10.1)(33.2%)

Operating Income (Billions of yen)

693.4

733.6

40.1

5.8%

Ordinary Income (Billions of yen)

718.1

750.0

31.9

4.4%

Net Income

182.9

183.6

0.7

0.4%

125.29125.780.49

0.4%(Billions of yen)

Net income per share (Yen)*

Average number of INPEX shares issued and outstanding during the year ended March 31, 2014: 1,460,357,200

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

110.21

107.56(2.65)(2.4%)

Average exchange rate (¥/$)

82.92

100.1717.25 Yen

20.8% Yen

depreciation

depreciation*The company conducted a stock split at a ratio of 1:400 of common stock on October 1, 2013.
Net income per share is calculated based on the assumption that the stock split was conducted on April 1, 2012.

2

Crude Oil Sales
Mar. ’13

Change%Change

Net Sales (Billions of yen)

788.1

858.7

70.6

9.0%

Sales volume (thousand bbl)

86,18979,171(7,018)(8.1%)

Average unit price of overseas
production ($/bbl)

110.11

107.78(2.33)(2.1%)

Average unit price of domestic
production(¥/kl)

64,207

67,817

3,610

5.6%

Average exchange rate (¥/$)

82.66

100.2617.60 Yen
depreciation

21.3% Yen
depreciation

Sales volume by region(thousand bbl)

Mar. ‘13

Mar. ‘14

Change%ChangeJapan

414(66 thousand kl)

861(137 thousand kl)

446(+71 thousand kl)

107.7%

Asia/Oceania

19,341

12,151(7,191)(37.2%)

Eurasia (Europe/NIS)

9,177

8,697

(480)

(5.2%)

Middle East/Africa

57,201

57,420219

0.4%

Americas

55

43

(12)

(22.0%)

86,18979,171(7,018)(8.1%)

Total
3

Mar. ’14

Natural Gas Sales (excluding LPG)
Mar. ‘13

Mar. ‘14

Change%Change

Net Sales (Billions of yen)

370.5

431.1

60.6

16.4%

Sales volume (million cf)

318,792

327,117

8,325

2.6%

13.43

13.09

(0.34)(2.5%)

47.02

50.31

3.29

7.0%

82.77

100.0817.31 Yen
depreciation

20.9% Yen
depreciation%Change

Average unit price of overseas
production ($/thousand cf)
Average unit price of domestic
sales(¥/ m3)
Average exchange rate (¥/$)
Sales volume by region (million cf)

Mar. ‘13

Mar. ‘14

Change65,429(1,753 million m3*)

67,106(1,798 million m3*)

1,677(+45 million m3*)

2.6%

Purchased Volume
491 million m3*

Purchased Volume
481 million m3*(11 million m3*)

(2.2%)

Asia/Oceania

223,451

219,771(3,680)(1.6%)

Eurasia (Europe/NIS)

‐

‐

‐

‐

Middle East/Africa

‐

‐

‐

‐

Americas29,91240,240

10,32934.5%

318,792

327,117

8,325

2.6%

Japan

Total
(FYI) LPG Sales*1m3=41.8605MJ

Mar. ’13

4

Net Sales (Billions of yen)Mar. ’14
27.2

Change24.2(3.0)%Change(11.1%)

Analysis of Net Sales Increase(Billions of Yen)

1,400

Crude Oil

(63.3)Natural Gas (including LPG)

2.9

211.9
(10.1)

1,200(60.4)(23.2)

1,000
800
600

Crude Oil

149.1

Natural Gas (including LPG)

62.8

Crude Oil(15.1)Natural Gas (including LPG)

(8.1)

1,334.6

1,216.5

400
200
0
5

Net Sales
Mar. ‘13

Decrease inSales Volume

Decrease in
Exchange rate
Unit Price (Depreciation of Yen)

OthersNet Sales
Mar. ’14

Statement of Income(Billions of Yen)

Mar. ’14

Change%Change

Decrease in Sales Volume : (60.4)
Decrease in Unit Price :(23.2)
Exchange rate
(Depreciation of Yen) :+211.9Others :(10.1)

1,216.5

1,334.6

118.0

9.7%

Cost of Sales

426.3

490.4

64.0

15.0%

Exploration expenses

20.1

28.2

8.0

40.2%

Selling, general andadministrative expenses

76.6

82.3

5.7

7.5%

Operating Income

693.4

733.6

40.1

5.8%

Other income

98.6

50.7

(47.9)(48.6%)

Main Factors

Other expenses

73.9

34.2

(39.7)(53.7%)

Gain on transfer of the Ichthys
equity interest, etc.
(75.6)

Ordinary Income

718.1

750.0

31.9

4.4%

Gain on sales of marketablesecurities+10.2

Income taxes‐current

539.2

514.0

(25.1)(4.7%)

Income taxes‐deferred

(9.9)

49.1

59.0

‐%

Net Sales

Minority interests
Net Income＊Including LPG

6Mar. ’13

5.9

3.2

(2.6)

(45.0%)

182.9

183.6

0.7

0.4%

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

Interest income

293.7
+37.8
182.5
+33.5

+8.7

Main Factors
Foreign exchange loss
(25.7)
Provision for exploration
projects(11.2)

Other Income/Expenses(Billions of Yen)

7

Mar. ‘13

Mar. ‘14

Change%Change

Other income

98.6

50.7

(47.9)(48.6%)

Interest income

8.7

17.4

8.7

99.9%

Dividend income

7.8

9.2

1.3

17.8%

Gain on sales of marketable securities

0.0

10.3

10.2

‐%

Other

82.0

13.7

(68.3)(83.3%)

Other expenses

73.9

34.2

(39.7)(53.7%)

Interest expense

1.5

2.3

0.8

53.8%

Equity in losses of affiliates

1.0

5.0

4.0

‐%

Provision for allowance for recoverable accounts under
production sharing

15.1

8.0

(7.1)

(46.9%)

Provision for exploration projects

12.4

1.1

(11.2)(90.6%)

Foreign exchange loss

30.0

4.2

(25.7)(85.8%)

Other

13.7

13.4

(0.3)

(2.6%)

Analysis of Net Profit Increase(Billions of Yen)

350
211.9

300

Main Factors;• Decrease in gain on transfer of the Ichthys equity interest, etc. (75.6) (’12: Gains on transfer of
equity interest and sales of investment securities)• Foreign exchange gain +25.7, Gain on sales of marketable securities +10.2 and Interest income+8.7(10.1)
10.3

250

(5.7)

(64.0)(26.6)

200
Main Factors‐ Increase due to the Yen
depreciation against the US dollar‐ Investments to maintain production
volume

150
100

2.6
(33.8)(60.4)
182.9(23.2)

183.6

50
0Net Profit Decrease in Decrease in Exchange Rate Others
Mar. ’13 Sales Volume Unit Price (Depreciationof Yen)Net Sales

Increase in Decrease in Increase in Other Income Increase in Decrease in Net Profit
Cost of Exploration
SG&A and Expenses Income
MinorityMar. ‘14
Sales Expenses andTax
Interest
Allowance forpayableExploration**”Provision for allowance for recoverable accounts under production sharing” + “Provision for exploration projects”

8Balance Sheet(Billions of yen)
Current assets

Mar. ‘13

Mar. ’14

Change%Change

1,106.5

1,140.2

33.7

3.0%

Tangible fixed assets

584.5

951.7

367.2

62.8%

Intangible assets

380.1

439.1

59.0

15.5%

Recoverable accounts under
production sharing

590.5

685.9

95.4

16.2%

Other

1,067.2

944.4(122.7)(11.5%)

Less allowance for recoverable
accounts under production sharing(112.8)(123.4)(10.6)

9.4%

Total assets

3,616.1

4,038.1

421.9

11.7%

Current liabilities

414.9

375.6

(39.3)(9.5%)

Long‐term liabilities

530.1

666.4

136.2

25.7%

2,670.9

2,996.0

325.0

12.2%

189.6

204.9

15.2

8.0%

Total liabilities and net assets

3,616.1

4,038.1

421.9

11.7%

Net assets per share (Yen) **1,699.10

1,911.25

212.15

12.5%

Total net assets(Minority interests)**The company conducted a stock split at a ratio of 1:400 of common stock on October 1, 2013.
Net assets per share is calculated based on the assumption that the stock split was conducted on April 1, 2012.

9

Available fund (Billions of yen)
1,466.1*
Breakdown• Cash and deposits:
650.1• Long‐term time deposits : 364.1• Marketable securities :201.0• Available investment securities :250.8*Amounts to be allocated for theinvestments for development andexploration activities until the year
ending March 31, 2017 following the“Medium‐ To Long–Term Vision of
INPEX”.

Summary of financial information
for Ichthys downstream JV (100%basis, including the Company’s
equity share 66.07%)• Current assets :• Fixed assets :• Total assets:

47.2
1,262.5
1,309.7

Shareholders’ equity
Retained earnings :+157.7
Accumulated other comprehensive
income :+152.0・Unrealized holding gain on
securities:+9.9
・Unrealized loss fromhedging instruments :(33.8)
・Translation adjustments: +175.8

Statement of Cash Flows(Billions of Yen)

Mar. ‘13

Mar. ‘14

Change%Change

Income before income taxes and minority interests

718.1

750.0

31.9

4.4%

Depreciation and amortization

51.9

50.9

(0.9)

(1.9%)

Recovery of recoverable accounts under production
sharing (capital expenditures)

54.0

67.0

12.9

24.0%

Recoverable accounts under production sharing(operating expenditures)(21.0)(60.4)(39.4)

187.0%

Income taxes paid

(540.8)(567.1)(26.2)

4.9%

Other

(9.8)

(26.9)(17.0)

173.0%Net cash provided by operating activities

252.3

213.5

(38.8)(15.4%)(189.1)(323.6)(134.4)

71.1%

Purchases of marketable securities/investment securities andproceeds from sales of marketable securities/investment securities
(Net)

328.9

323.2

(5.7)

(1.7%)

Investment in recoverable accounts under production
sharing (capital expenditures)(82.6)(104.0)(21.3)

25.9%

Payments for purchase of mining rights(176.2)(42.7)

133.4(75.8%)

Other(370.7)(248.3)122.4(33.0%)(489.8)(395.5)94.3(19.3%)Net cash provided by financing activities

137.0

48.9

(88.1)(64.3%)Cash and cash equivalents at end of the period

199.8

117.5

(82.3)(41.2%)

Purchase of tangible fixed assets

Net cash used in investing activities

10Financial Indices
Equity Ratio**

Net Debt/Total Capital Employed (Net)*
Mar.ʹ13Mar.ʹ14(43.9%)(31.9%)

D/E Ratio***

11

*

19.2%

20.9%

Mar.ʹ13Mar.ʹ14

**
***

68.6%

69.1%

Mar.ʹ13Mar.ʹ14

Net Debt/Total Capital Employed (Net) = (Interest‐bearing debt ‐ Cashand deposits ‐ Public and corporate bonds and other debt securities(with determinable value) – MMF etc. – Long term time deposits)/(Netassets + Interest‐bearing debt ‐ Cash and deposits ‐ Public andcorporate bonds and other debt securities (with determinable value) –MMF etc.– Long term time deposits)
Equity Ratio = (Net assets ‐ Minority interests)/Total assets
D/E Ratio = Interest‐bearing debt/ (Net asset ‐ Minority interests)

Consolidated Financial Forecasts
for the year ending March 31, 2015
1st Half

2nd Half

Full year

Brent oil price ($/bbl)

105.0

105.0

105.0

Average exchange rate (¥/$)

100.0

100.0

100.0

Mar. ‘14(Actual)Mar. ‘15(Forecasts )Full Year

Change% Change

1,334.6

1,331.0(3.6)(0.3%)

Operating Income (Billions of yen)

733.6

638.0

(95.6)(13.0%)

Ordinary Income (Billions of yen)

750.0

694.0

(56.0)(7.5%)Net Income

183.6

171.0

(12.6)(6.9%)Net Sales (Billions of yen)

650.4

643.0

(7.4)

(1.1%)

Operating Income (Billions of yen)

344.2

309.0

(35.2)(10.2%)

Ordinary Income (Billions of yen)

350.6

336.0

(14.6)(4.2%)Net Income

80.0

80.0

0

0.0%

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

1st Half(Billions of yen)

FY End3,600*
9.0

9.0
9.0

TOTAL

‐

18.0

2Q EndCash dividends per share (yen)*The company conducted a stock split at a ratio of 1:400 of common stock on October 1, 2013.

12 Cash dividends per share as of 2Q End 2013 is based on the stock before the stock split was conducted.

Sales and Investment Planfor the year ending March 31, 2015
Mar. ’14(Actual)Change% Change

Sales Volume

Crude oil (thousand bbl)1

79,17182,093

2,922

3.7%

Natural gas (million cf)2

327,117

323,555(3,562)(1.1%)

Overseas260,011

255,941(4,070)(1.6%)

Japan

67,106(1,798 million m3)

67,614(1,812 million m3)

508(14 million m3)

0.8%

2,944

2,319

(625)

(21.2%)LPG (thousand bbl)3(Billions of yen)Mar. ‘14(Actual)Mar. ‘15(Forecasts)

Change% Change

Development expenditure4

854.7

990.0

135.3

15.8%

Other capital expenditure

37.2

30.0

(7.2)

(19.4%)

Exploration expenditure

71.0

105.0

34.0

47.9%

72.1

34.8

93.3%

22.0

12.4

129.2%

Exploration expenses andProvision for explorations5(Minority Interest Portion)613

Mar. ‘15(Forecasts )Exploration expenses 28.2

Exploration expenses 45.9

Provision for explorations 37.3

Provision for explorations
26.2

9.1

9.6

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 minority shareholders, etc.

Net Income Sensitivities (1/2)
 Sensitivities of crude oil price and foreign exchange fluctuation on
consolidated net income for the year ending March 31, 2015 (Note 1)(The impact of Exchange Rate is shown in more detail below.)(Billions of yen)

Crude Oil Price; $1/bbl increase (decrease) (Note 2)+2.5 (‐2.5)

Exchange Rate; ¥1 depreciation (appreciation) against the
U.S. dollar+0.8 (‐0.8)

 Flow effect on net income from operating activities (Note 3)
 Stock effect on net income (valuation for assets and liabilities
denominated in the U.S. dollar) (Note 4)+2.1 (‐2.1)‐1.3 (+1.3)(Note1) The sensitivities represent the impact on net income for the year ending March 31, 2015 against $1 /bbl increase (decrease) of Brent crude oil
price on annual average and ¥ 1 depreciation (appreciation) against the U.S. dollar. These are based on the financial situation at the beginningof the fiscal year. These are information purpose 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 from operating activities by fluctuation of the yen against the U.S. dollar and is subject to the averageexchange rate in the fiscal year.
(Note4) This is the impact of foreign exchange differences for foreign currency‐denominated assets and liabilities, and is affected by the difference
between the exchange rate at the end of the fiscal year and the end of the previous fiscal year. In this fiscal year, as foreign currency‐
denominated debt is greater than foreign currency‐denominated assets due to an increase in foreign currency debt, exchange valuation gains
will occur when the yen is appreciated against foreign currency, while exchange valuation losses will occur when the yen becomes weakeragainst foreign currency. In addition, because of the impact of deferred tax accounting, when the yen is appreciated against the U.S. dollar toa certain extent, the above sensitivities may show different trend.

14

Net Income Sensitivities (2/2)
Details on valuation for assets and liabilities denominated in the U.S. dollar

Exchange gain/loss is booked in theStatements of Income.

Exchange gain/loss directly affects net assets
in the balance sheet (in the form of unrealizedexchange gain/loss).

The assets and liabilities denominated in the U.S. dollar are practically balanced as above.
Some portion of assets is bonds denominated in the U.S. dollar, and exchange gain or loss derived
from the yen appreciation or depreciation against the U.S. dollar of such portion does not affect aStatement of Income, but net assets in the balance sheet (expressed in unrealized holding gain on
securities) in the form of unrealized exchange gain or loss.
As redemption of these bonds denominated in the U.S. dollar has been made since last fiscal year
and is scheduled to be done within the next two years, profit or loss will be booked in a Statement of
Income at the time of redemption. In addition, if such redeemed amounts are deposited in the formof U.S. dollar, assets and liabilities denominated in the U.S. dollar will be gradually balanced, from aview point of Statement of Income, and, accordingly, sensitivities on valuation for assets andliabilities denominated in the U.S. dollar is expected to be close to zero.

15

When sensitivities of valuation for assets and liabilities denominated in the U.S. dollar become zero,
the sensitivity of exchange rate will only result from the flow effect on net income from operating
activities.