ファConsolidated Financial Results for the year ended March 31, 2013 [Japanese GAAP]May 10, 2013
Note: The following report is an English translation of the Japanese-language original.
Company name

: INPEX CORPORATION

Stock Exchange on which the Company is listed

Code number: 1605URL

Representative: Toshiaki Kitamura, President

Contact person: Kimihisa Kittaka, General Manager, Corporate Communications Unit
TEL+81-3-5572-0233: Tokyo Stock Exchange

http://www.inpex.co.jp

Scheduled date of ordinary general meeting of shareholders :June 25, 2013
Scheduled date of filing Financial Report:June 26, 2013

Scheduled date of payment of cash dividends:June 26, 2013

Preparation of supplementary explanatory materials: Yes

Meeting of financial results presentation: Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for the year ended March 31, 2013(April 1, 2012-March 31, 2013)(1) Consolidated operating results(Figures in % represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2013
March 31, 2012

Operating income

Millions of yen%

Millions of yen

1,216,533
1,186,731

2.5
25.8

693,447
709,357

Ordinary income
%

(2.2)
33.9

Net income

Millions of yen%

Millions of yen%

718,146
767,038

(6.4)
50.8

182,961
194,000

(5.7)
50.7

(Note) Consolidated comprehensive income: for the year ended March 31, 2013, ¥ 337,542 million; (40.3%)
for the year ended March 31, 2012, ¥ 240,669 million; (109.8%)
Net income per Net income per Net income as a percentage Ordinary income as a Operating income as aof net assets excluding
percentage of total assets percentage of net sales
share—basic
share—diluted
minority interests
For the year ended
Yen
Yen
%
%
%

March 31, 2013
March 31, 2012――

50,114.22
53,137.93

7.9
9.3

21.5
26.7

57.0
59.8

(Reference): Equity in earnings (losses) of affiliates: for the year ended March 31, 2013, ¥(1,041) million
for the year ended March 31, 2012, ¥ 6,638 million(2) Consolidated financial position
Net assets excluding minority interests
Net assets excluding
as a percentage of total assets
minority interests per share
Millions of yen%
Yen

Total assets

Net assets

Millions of yen

As of March 31, 2013
As of March 31, 2012

3,616,158
3,066,397

2,670,983
2,314,193

68.6
71.1

679,639.63
596,908.99(Reference): Net assets excluding minority interests: as of March 31, 2013, ¥ 2,481,292 million
as of March 31, 2012, ¥ 2,179,251 million(3) Consolidated cash flows
For the year ended
March 31, 2013
March 31, 2012

Cash flows fromoperating activities
Millions of yen

Cash flows frominvesting activities
Millions of yen

252,346
320,691(489,870)(280,864)

Cash flows from
Cash and cash equivalents atfinancing activities
end of the year
Millions of yen
Millions of yen

137,069
29,294

199,858
249,233

2. Dividends
Cash dividends per share
At 1st
At 2ndAt 3rdquarter end quarter end quarter end
For the year ended
March 31, 2012
March 31, 2013
For the year ending
March 31, 2014
(forecast)At fiscal
year end

Total

Total cash
Payout ratio
dividends (Annual) (Consolidated)

Cash dividends
as a percentageof net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

―
―

3,000.00
3,500.00――

4,000.00
3,500.00

7,000.00
7,000.00

25,55625,556

13.2
14.0

1.2
1.1

―

3,600.00

―

9.00

―

1

―

ファ

*1: Forecast information about year-end dividends for the fiscal year ending March 31, 2014 is provided after taking into consideration the effectof the stock split to be conducted at a ratio of 1:400 as to common stock with October 1, 2013 as the effective date.
If adjusted to reflect the number of shares prior to the stock split, the forecast of fiscal year end dividend amount will be equivalent to ¥3,600.
*2: Above information of “Dividends” is regarding common stock. For information regarding class A stock (which is not listed), please refer to
Exhibit “Dividends of class A stock ”.
3. Forecasted Consolidated Operating Results for the year ending March 31, 2014 (April 1, 2013-March 31, 2014)(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Net sales
Millions of yen
For the six months ending
September 30, 2013
For the year ending
March 31, 2014

Operating income% Millions of yen

Ordinary income% Millions of yen

Net income pershare

Net income% Millions of yen%

Yen

594,000

2.7

292,000(13.6)

300,000(17.5)

66,000(40.7)

45.19

1,209,000(0.6)

594,000(14.3)

615,000(14.4)

137,000(25.1)

93.81* The Company will conduct a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date. Net income per shareis calculated based on the assumption that the stock split was conducted on April 1, 2013.
*Notes(1) Significant changes in scope of consolidation: Yes(Changes in the specified subsidiaries during the period due to change in scope of consolidation)

Newly included: INPEX Oil & Gas Australia Pty Ltd, INPEX Gas British Columbia Ltd., INPEX Angola Block 14 Ltd. (Three companies)(2) Changes in accounting policies, accounting estimates and restatement of corrections
1. Changes in accounting policies resulting from the revision of the accounting standards andother regulations
2. Other changes in accounting policies
3. Changes in accounting estimates
4. Restatement of corrections(3) Number of shares issued (Common stock)
1. Number of shares issued at the end of the period(including treasury stock):
2. Number of treasury stock at the end of the period:: None: None: None: None3,655,810 shares as of March 31, 2013
3,655,810 shares as of March 31, 2012
4,916 shares as of March 31, 2013
4,916 shares as of March 31, 2012
3,650,894 shares for the year ended March 31, 2013
3,650,894 shares for the year ended March 31, 2012

3. Average number of shares:(Note): Since shareholder of the class A stock is entitled to the same rights as that for shareholders of common stock regarding dividends andthe distribution of residual property, the class A stock is classified as common stock equivalent share. Further, the Company will conduct astock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date, however, for class A stock (which is not listed), no
stock split will be implemented.

(Reference) Non-Consolidated Financial Results
1. Financial results for the year ended March 31, 2013 (April 1, 2012-March 31, 2013)(1) Operating results(Figures in % represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2013
March 31, 2012

Operating income

Millions of yen%

Millions of yen

399,496452,228(11.7)
20.1

181,278
233,652

Net income pershare—basic
For the year ended
March 31, 2013
March 31, 2012

Ordinary income%(22.4)
22.6

Net income

Millions of yen%

Millions of yen%

247,369
266,131

(7.0)
28.4

147,090
145,807

0.9
22.3

Net income pershare—diluted
Yen

Yen

40,288.77
39,937.57――(2) Financial position

As of March 31, 2013
As of March 31, 2012

Net assets as apercentage of total assets

Net assets per share

Total assets

Net assets

Millions of yen

Millions of yen%

Yen

3,177,617
2,540,523

2,096,127
1,948,790

66.0
76.7

574,140.93
533,784.50(Reference): Net assets: as of March 31, 2013, ¥ 2,096,127 million
as of March 31, 2012, ¥ 1,948,790 million

2ファ*Indication of audit procedure implementation status
This earnings report is exempt from audit procedure under the Financial Instruments and Exchange Act. The audit procedure for consolidated
financial statements under the Financial Instruments and Exchange Act has not been completed at the time of disclosure of this report.
*Explanation regarding the appropriate use of estimated consolidated financial results*1: The aforementioned forecasts “3. Forecasted Consolidated Operating Results for the year ending March 31, 2014” are based on the currently
available information and contain many uncertainties. The final results might be significantly different from the aforementioned forecasts
due to changes in business conditions including oil and natural gas price levels, production and sales plans, project development schedules,
government regulations and financial and tax schemes. Please refer to “1. (1) Analysis on Consolidated Operating Results” on page 7.
*2: The Company will conduct a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date.

3

ファ

Exhibit:
Dividends of class A stock
Cash dividends per share
At 1st quarter end
For the year ended
March 31, 2012
March 31, 2013
For the year ending
March 31, 2014
(forecast)

At 2nd quarter end

At 3rd quarter end

Yen

Yen

―
―

3,000.00
3,500.00―

3,600.00

At fiscal year end
Yen

―
―
―

Total

Yen

Yen

4,000.00
3,500.00

7,000.00
7,000.00

3,600.00

7,200.00* The Company will conduct a stock split at a ratio of 1:400 of common stock with October 1, 2013 as the effective date, however, for class A
stock (which is not listed), no stock split will be implemented. New article, which shows that dividends of class A stock are equivalent todividends of a common stock prior to the stock split, will be established in the Articles of Incorporation.

4

Index of the Attachments

1.

Results of Operations and Financial Position………………………………………………………………………………..

6(1) Analysis on Consolidated Operating Results……………………………………………….…….………..…………….

6(2) Analysis on Consolidated Financial Position…………………………………………………………………………......

7(3) Dividend policy and Dividends for the year ended March 31, 2013 and for the year ending March 31, 2014…………….

8

2.

Overview of the INPEX CORPORATION Group…………………………………………………………………………...

9

3.

Management Policy………………………………………………………………………………………………………...... 10

4.

5.

6.

(1) Management Strategy…………………………………………………………………………………………………….

10(2) Medium- to Long-Term Management Key Initiatives………………………………………………………….………...

10

Consolidated Financial Statements………………………………………………………………………………………….

13(1) Consolidated Balance Sheets………………………………………………………………………………………….....

13(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………………………..

15

Consolidated Statements of Income……………………………………………………………………………………...

15

Consolidated Statements of Comprehensive Income…………………………………………………………………….

16(3) Consolidated Statements of Changes in Net Assets………………………………………………………………………

17(4) Consolidated Statements of Cash Flows………………………………………………………………………………….

20(5) Notes to Consolidated Financial Statements………...……………………………………………………………………

22(Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern) ……………………………………………………………….....

22(Basis of Presenting Consolidated Financial Statements) ………………………………………………………………...

22(Changes in the Presentation) …………………………………………………………………………………………….

26(Consolidated Balance Sheets) …………………………………………………………………………………………...

27(Consolidated Statements of Income) …………………………………………………………………………………….

30(Consolidated Statements of Comprehensive Income) …………………………………………………………………...

30(Consolidated Statements of Changes in Net Assets) …………………………………………………………………….

31(Consolidated Statements of Cash Flows) ………………………………………………………………………………..

33(Segment Information and Others)………………………………………………………………………...……………...

34(Financial Instruments) …………………………………………………………………………………………………..

38(Securities) ……………………………………………………………………………………………………………….

42(Derivative Transactions) ……………………………………………………………………………………………….

44(Per Share Information) ………………………………………………………………………………………………….

45(Significant Subsequent Events) …………………………………………………………………………………………

46(Omissions of Disclosure) ………………………………………………………………………………………………..

47

Non-Consolidated Financial Statements……………………………………………………………………………………

48(1) Non-Consolidated Balance Sheets………………………………………………………………………………………..

48(2) Non-Consolidated Statements of Income………………………………………………………….……………………..

51(3) Non-Consolidated Statements of Changes in Net Assets ………………………………………………………………...

52(4) Notes to Non-Consolidated Financial Statements …...…………………………………………………………………...

54(Conditions or events that indicate there could be substantial doubt about
the Company’s ability to continue as a going concern) ………………………………………………………………….
Other………………………………………………………………………………………………………………………....

54(1) Production, Orders Received and Sales Performance…………………………………………………………………….

54

5

1. Results of Operations and Financial Position(1) Analysis on Consolidated Operating Results
During this fiscal year, the Japanese economy showed a gradual recovery owing to the reconstruction demand for the Great East
Japan Earthquake. Though it got weaker as affected by spreading slowdown of the global economy stemming from the European
debt crisis in the second half of the fiscal year towards its end, there is a growing expectation for economic upturn, coming fromthe effect of the Government’s economic policy and monetary policy.
Amid this business environment, international oil prices gave a significant impact on the performance of our Group. Brent crudeoil, which is one of the typical indicators, started from US$125.43 per barrel, but fell to US$89.23 per barrel in late June due to themounting crude oil inventories worldwide and the European debt crisis.
However, after EU leaders agreed on the solution for the debt issues, the upward trend began and came to US$116.90 per barrel in
mid-August, remaining at around US$ 110 per barrel level until the end of the year.
As economic indicators in the U.S. and Europe were strong since the beginning of the year 2013, Brent crude oil prices went up to
US$118.90 per barrel in early February, but it began to decline again from the fear of recurrence of the European debt crisis, andfinished at US$110.02 per barrel at end of this fiscal year.
Meanwhile, crude oil and petroleum product prices in the domestic market changed correlating with the international crude oil
prices. Reflecting these circumstances, the average sales price for crude oil for this fiscal year for the Group was US$110.11 per
barrel, which is US$2.86 lower than that of the previous fiscal year.
The foreign exchange market, another important factor that affects the business of our Group, began to trade at the middle of ¥83
level to the U.S. dollar. The yen appreciation steadily continued against the U.S.dollar early this fiscal year to lower ¥77 in
mid-September while the U.S. economy showed a decelerating recovery and concerns about sovereign and the financial sector
arose in Europe. However, the yen was sharply depreciated to the U.S.dollar since around the period of Japanese Lower House
election held in December, and there were growing expectations for the new administration's economic policy and additionalmonetary easing by Bank of Japan, and growing demand of yen selling from consumptive interests related to the trade deficit trendof Japan was considered.
After the turn of the year, the yen continued to depreciate to the U.S.dollar supported by the facts that expectations of monetaryeasing grew sharply related to the appointment of Governor of Bank of Japan, and that the U.S.dollar appeared to appreciate
against major currencies reflecting the discussions that the end of quantitative easing began partly against the background of asteady recovery of the U.S.economy on the U.S.side.
In March, the yen temporarily dropped to ¥96 range to the U.S.dollar which is the lowest level in three and half years, and as aresult, TTM closed at ¥93.99 to the U.S. dollar which turned out to be ¥11.85 lower than that of the fiscal year end of March 31,
2012.
Reflecting these situations, the average sales exchange rate for our Group for this fiscal year was ¥82.68 to the U.S. dollar, whichis ¥3.55 lower than that of the previous fiscal year.
Consolidated net sales for the year ended March 31, 2013 increased by ¥29.8 billion, or 2.5%, to ¥1,216.5 billion from theprevious fiscal year due to an increase in sales volume of crude oil and a positive effect of depreciation of the Japanese yen against
the U.S.dollar, despite a decrease in sales price of crude oil and natural gas. Net sales of crude oil increased by ¥61.9 billion, or
8.5%, to ¥788.1 billion, and net sales of natural gas decreased by ¥31.2 billion, or 7.3%, to ¥397.7 billion.
Sales volume of crude oil increased by 5,452 thousand barrels, or 6.8%, to 86,189 thousand barrels due mainly to an increase insales volume owing to the commencement of production from the Kitan Oil Field in 2011 and in the ADMA Block. Sales volumeof natural gas decreased by 38,809 million cf, or 10.9%, to 318,792 million cf. Sales volume of overseas natural gas decreased by
38,636 million cf, or 13.2%, to 253,362 million cf due to a decrease in sales volume in the Offshore Mahakam Block and others,
and sales volume of domestic natural gas decreased by 5 million ㎥, or 0.3%, to 1,753 million ㎥ (65,429 million cf).
The average sales price of overseas crude oil decreased by US$2.86, or 2.5 %, to US$110.11 per barrel. Meanwhile, the averagesales price of overseas natural gas decreased by US$0.69, or 4.9%, to US$13.43 per thousand cf. In addition, the average sales
price of domestic natural gas increased by ¥2.46, or 5.5%, to ¥47.02 per ㎥.
The increase of ¥29.8 billion in net sales was mainly derived from the following factors: regarding net sales of crude oil andnatural gas, an increase in sales volume contributing ¥7.6 billion to the increase, a decrease in unit sales price pushing sales downof ¥24.2 billion, and the depreciation of Japanese yen against the U.S. dollar contributing ¥47.1 billion to the increase, in addition,a decrease in net sales excluding crude oil and natural gas of ¥0.8 billion.
Cost of sales for the year ended March 31, 2013 increased by ¥30.8 billion, or 7.8%, to ¥426.3 billion due to an increase in royalty
in the ADMA Block owing to an increase in sales, an increase in depreciation and amortization in the Kitan Oil Field, a trend of theyen depreciation, and others. Exploration expenses increased by ¥8.3 billion, or 71.3%, to ¥20.1 billion, and selling, general andadministrative expenses increased by ¥6.4 billion, or 9.2%, to ¥76.6 billion. As a result, operating income decreased by ¥15.9
billion, or 2.2%, to ¥693.4 billion.
Other income decreased by ¥3.4 billion, or 3.3 %, to ¥98.6 billion due to a decrease in gain on transfer of mining rights, despite anincrease in gain on sales of investment securities.Other expenses increased by ¥29.5 billion, or 66.6%, to ¥73.9 billion due to anincrease in provision for exploration projects owing to an increase in exploration projects in Asia and an increase in foreignexchange loss. As a result, ordinary income decreased by ¥48.8 billion, or 6.4%, to ¥718.1 billion.
Total amount of current income taxes and deferred income taxes decreased by ¥7.6 billion, or 1.4%, to ¥529.2 billion, andminority interests were ¥5.9 billion. As a result of the above effects, net income for the year ended March 31, 2013 decreased by¥11.0 billion, or 5.7%, to ¥182.9 billion from the previous fiscal year.
Financial results by segment are as follows:
1)

Japan

6

2)

3)

4)

5)

Net sales increased by ¥5.2 billion, or 4.6%, to ¥118.9 billion due to an increase in sales price of natural gas. Operating
income increased by ¥3.9 billion, or 16.1%, to ¥28.5 billion.
Asia & Oceania
Net sales increased by ¥2.0 billion, or 0.4%, to ¥485.2 billion due to an increase in sales volume of crude oil and thedepreciation of the Japanese yen against the U.S. dollar, despite a decrease in sales volume and sales price of natural gas.
Operating income decreased by ¥17.9 billion, or 6.0%, to ¥281.6 billion due to an increase in depreciation and amortizationand others.
Eurasia (Europe & NIS)
Net sales increased by ¥1.2 billion, or 1.4%, to ¥85.5 billion due to the depreciation of the Japanese yen against the U.S.
dollar, despite a decrease in sales price of crude oil. Operating income decreased by ¥5.3 billion, or 11.3%, to ¥41.7 billion
due to an increase in administrative expenses and others.
Middle East & Africa
Net sales increased by ¥20.8 billion, or 4.2%, to ¥520.8 billion due to an increase in sales volume of crude oil and thedepreciation of the Japanese yen against the U.S. dollar, despite a decrease in sales price of crude oil. Operating income
increased by ¥3.2 billion, or 0.9%, to ¥357.3 billion.
Americas
Net sales increased by ¥0.4 billion, or 7.6%, to ¥5.9 billion due to an increase in sales volume of natural gas, and operating
loss increased by ¥0.5 billion, or 10.4%, to ¥6.0 billion.

As for the outlook, consolidated net sales for the six months ending September 30, 2013 are expected to be ¥594.0 billion, toincrease by 2.7% compared with the six months ended September 30, 2012, and net sales for the year ending March 31, 2014 areexpected to be ¥1,209.0 billion, to decrease by 0.6% compared with the year ended March 31, 2013.
Operating income for the six months ending September 30, 2013 is expected to be ¥292.0 billion, to decrease by 13.6% comparedwith the six months ended September 30, 2012, and operating income for the year ending March 31, 2014 is expected to be¥594.0 billion, to decrease by 14.3% compared with the year ended March 31, 2013.
Ordinary income for the six months ending September 30, 2013 is expected to be ¥300.0 billion, to decrease by 17.5% comparedwith the six months ended September 30, 2012, and ordinary income for the year ending March 31, 2014 is expected to be ¥615.0
billion, to decrease by 14.4% compared with the year ended March 31, 2013. Net income for the six months ending September 30,
2013 is expected to be ¥66.0 billion, to decrease by 40.7% compared with the six months ended September 30, 2012, and net
income for the year ending March 31, 2014 is expected to be ¥137.0 billion, to decrease by 25.1% compared with the year ended
March 31, 2013.
Net sales for the year ending March 31, 2014 are expected to decrease due to the forecasted decrease in the crude oil pricecompared with the previous fiscal year and a slight decrease in sales volume, and operating income, ordinary income and net
income for the year ending March 31, 2014 are also expected to decrease as well.
In these estimates, the crude oil price is assumed to be US$100.0 per barrel (for Brent crude oil) with the exchange rate of theJapanese yen against the U.S. dollar at ¥95 through the year ending March 31, 2014.
(2) Analysis on Consolidated Financial Position
Consolidated total assets as of March 31, 2013 increased by ¥549.7 billion to ¥3,616.1 billion from ¥3,066.3 billion as of March
31, 2012. Current assets increased by ¥197.8 billion to ¥1,106.5 billion due to an increase in cash and deposits and others. Fixed
assets increased by ¥351.9 billion to ¥2,509.6 billion due to an increase in construction in progress, mining rights, long-term time
deposits and others.
Meanwhile, total liabilities increased by ¥192.9 billion to ¥945.1 billion from ¥752.2 billion as of March 31, 2012. Current
liabilities increased by ¥47.1 billion to ¥414.9 billion due to an increase in income taxes payable and provision for exploration
projects. Long-term liabilities increased by ¥145.8 billion to ¥530.1 billion due to an increase in long-term debt and others.
Net assets increased by ¥356.7 billion, to ¥2,670.9 billion. Total shareholders’ equity increased by ¥155.5 billion, to ¥2,339.9
billion. Total accumulated other comprehensive income increased by ¥146.4 billion to ¥141.3 billion and minority interests
increased by ¥54.7 billion to ¥189.6 billion.
As for cash flows for the year ended March 31, 2013, net cash provided by operating activities decreased by ¥68.3 billion to¥252.3 billion from the previous fiscal year due to a decrease in income before income taxes and minority interests owing to adecrease in sales price of crude oil and natural gas and others, and an increase in income taxes paid. Meanwhile, net cash used ininvesting activities increased by ¥209.0 billion to ¥489.8 billion due to a record of increase in long-term time deposits andpayments for purchase of mining rights. Net cash provided by financing activities increased by ¥107.7 billion to ¥137.0 billion
due to an increase in proceeds from long-term debt and proceeds from minority interests for additional shares.
After totaling ¥51.4 billion of the effect of exchange rate changes on cash and cash equivalents, the decrease in cash and cash
equivalents for the year ended March 31, 2013 amounted to ¥48.9 billion. Cash and cash equivalents at the end of the year ended
March 31, 2013 totaled ¥199.8 billion reflecting ¥0.4 billion of an increase in cash and cash equivalents from newly consolidated
subsidiary, the above net decrease of ¥48.9 billion and ¥0.8 billion of a decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation, from ¥249.2 billion at the end of the previous fiscal year.
(3) Dividend policy and Dividends for the year ended March 31, 2013 and for the year ending March 31, 2014
In order to secure a stable supply of oil and natural gas resources efficiently, INPEX CORPORATION Group aims to expand its
operating base. To this end, we are reinforcing investments in exploration and development in Japan and overseas, as well as inmaintenance and expansion of the supply infrastructure. The robust financial basis of INPEX CORPORATION Group is crucial
for maintaining this level of investment. Therefore, our basic policy is to maximize corporate value through ongoing maintenanceand enlargement of our reserves and production of oil and natural gas by affirmative investments, while paying out cash
dividends as direct compensation to shareholders, in light of the medium- to long-term prospects for INPEX CORPORATIONGroup.

7

We decided the year-end dividend to be ¥3,500 per share for the year ended March 31, 2013 based on the policy above. With the
mid-term dividend of ¥3,500 per share, thus the total dividend for the year is to be ¥7,000 per share.
We plan a mid-term dividend to be ¥3,600 per share and a year-end dividend to be ¥9 per share* for the year ending March 31,
2014.
As to the use of retained earnings, we plan to apply them to investments for the purpose of maintenance and enlargement of ourreserves and production of oil and natural gas and so on.
* Forecast information about year-end dividends for the fiscal year ending March 31, 2014 is provided after taking into
consideration the effect of the stock split to be conducted at a ratio of 1:400 as to the common stock with October 1, 2013 as theeffective date.

82. Overview of the INPEX CORPORATION GroupThe INPEX CORPORATION Group consists of INPEX CORPORATION, 71 subsidiaries (including 61 consolidated
subsidiaries), 22 affiliates (including 15 equity method affiliates) and their 3 subsidiaries (as of March 31, 2013). The Group
primarily engages in exploration, development, production and sales of crude oil and natural gas in Japan as well as in Asia, Oceania,
Middle East, Caspian Sea, Central and South America, Africa. In addition, segments divided by type of business are "crude oil andNatural gas exploration, development, production and sales" and "others".
The following diagram shows our Group’s business flow.
Crude oil and Natural gas exploration, development, production and sales

INPEX CORPORATION

Pipeline, Liquefaction

Drilling, Civil work etc.

Crude Oil
Sales

Crude Oil Sales

Natural Gas Sales

Pipeline, Liquefaction etc.

Natural Gas andother Sales

Crude Oil
Sales

＜Pipeline, Liquefaction, Refining Marketing etc.＞●Consolidated subsidiaries(Asia & Oceania)
INPEX DLNGPL Pty Ltd(Eurasia(Europe & NIS))INPEX BTC Pipeline, Ltd.
(Japan)Teiseki Pipeline Co., Ltd.
Saitama Gas Co., Ltd.
Other 3 consolidated subsidiaries●Equity method affiliates(Asia & Oceania)
Ichthys LNG Pty Ltd
And one equity method affiliate●Consolidated subsidiaries(Japan)Teiseki Drilling Co., Ltd.
And one consolidated subsidiary

Natural Gas andother Sales

Drilling, Civil work etc.

Other business

Note : 1 symbol “→” indicates capital investment（including indirect holdings）
2 symbol “⇒” indicates products and services flow

9

Customers

Crude Oil Sales＜Exploration, Development, Production＞●Consolidated subsidiaries(Asia & Oceania)
INPEX Natuna, Ltd.
INPEX Sahul, Ltd.
INPEX Alpha, Ltd.
INPEX Ichthys Pty Ltd
INPEX Oil & Gas Australia Pty Ltd
INPEX Masela, Ltd.
(Eurasia (Europe & NIS))INPEX Southwest Caspian Sea, Ltd.
INPEX North Caspian Sea, Ltd.
(Middle East & Africa)
Japan Oil Development Co., Ltd.
Teikoku Oil (D.R. Congo) Co., Ltd.
(Americas)
Teikoku Oil (Venezuela) Co., Ltd.
INPEX Gas British Columbia, Ltd.
Other 39 consolidated subsidiaries●Equity method affiliates(Asia & Oceania)
MI Berau B.V.
(Middle East & Africa)
Angola Block 14 B.V.
(Americas)
INPEX Offshore North Campos, Ltd.
Other 10 equity method affiliates〈Oversea’s Crude oil Sales〉
INPEX Trading , Ltd.
(Consolidated Subsidiary)

Crude Oil/ Natural GasSales3. Management Policy(1) Management Strategy
The INPEX Group positions itself to become a top class international oil and gas exploration and production company
through sustainable growth in the oil and gas development business. With natural gas as the core of our business, we will growinto an integrated energy company by making contributions to a stable energy supply to broader communities. We willcontinue to play a significant role in boosting the capability of supplying energy to Japan while contributing to the global
economic growth and social development. Through these efforts, we intend to further advance our reputation among ourshareholders and more broadly our stakeholders as a company serving an essential role in the global community.
(2) Medium- to Long-Term Management Key Initiatives
Based on the Management Strategy above, we carry out our businesses in accordance with three measures as follows;- Continuous enhancement of E&P activities to become a top class international oil & gas E&P company- Strengthening gas supply chain to further globalize gas business- Reinforcement of renewable energy initiatives to become an integrated energy company that contributes to global
community
Our challenges are as follows;
The key management initiatives for the Company in developing oil and natural gas resources are to produce oil and natural
gas in a stable manner ensuring safety and taking care of the environment, and achieving sustainable growth by maintaining
and expanding reserves through reinvesting the cash flow obtained from its existing oil and gas fields. The INPEX Group
strives to ensure HSE management and preservation of the environment, formulating the safety-conscious and environmental
sound system or framework across the INPEX Group based on the internationally recognized standards. By combining
overseas projects that promise high growth potential arising from expansion of reserves with domestic projects that arewithout country risks or foreign exchange risks, we are seeking qualitative improvements in our asset portfolio. At the sametime, by leveraging our business resources more effectively through an organic linkage of our overseas assets and ourdomestic infrastructure, we aim to further enhance our corporate value.
In May 2012, we set the targets to achieve sustainable growth over the medium- to long-term, and clarified key initiatives
for the medium term as described in the “MEDIUM- TO LONG-TERM VISION OF INPEX”. It sets three growth targets as“① Continuous Enhancement of E&P Activities,” “② Strengthening Gas Supply Chain” and “③ Reinforcement ofRenewable Energy Initiatives,” and to support such growth, it sets three management policies as “① Securing / Developing
Human Resources and Building an Efficient Organizational Structure,” “ ② Investment for Growth and Return for
Shareholders” and “③ Responsible Management as a Global Company.” Through achieving our Vision, the Company intends
to further enhance our corporate value and our reputation among our shareholders and more broadly our stakeholders as acompany serving an essential role in the global community.
As our immediate business challenges, we recognize the importance of steady development activities of the two large scale
LNG projects in Australia (Ichthys) and Indonesia (Abadi), stable production activities under the existing producing projects
including Mahakam in Indonesia, ADMA Block offshore Abu Dhabi and ACG oil fields in Azerbaijan, proactive exploration
activities for acquiring new oil and gas reserves, and pursuit of opportunities to acquire good projects. In our domestic gas
business, we consider that the sustainable growth of natural gas business is important to respond to growing social
requirements for expanding natural gas use. To meet such requirements, we have been enhancing domestic gas infrastructure
including the construction of Naoetsu LNG Receiving Terminal, the expansion of Shin Tokyo Line and the construction of
Toyama Line, and we have been developing the Gas Supply Chain which optimizes usage of overseas natural gas assets anddomestic gas supply infrastructure.
Our policy of business operation and approach to address the challenges are as follows;①

Continuous Enhancement of E&P Activitiesⅰ) Achieve a Well Balanced Asset Portfolio- Regional Diversification
The operating areas and asset portfolio of the Company have diversified to not only Japan, Asia and Oceania where wehave a wealth of experience and assets, but also the Middle East, the Caspian Sea, Central and South America, Africa andso on. We will proactively continue to invest in Asia, Oceania and other regions taking the regional balance into
consideration.
- Output ratio between Crude Oil and Gas
According to the outputs by products, the share of crude oil is around 60% while the share of natural gas is around 40%.
Crude oil is utilized all over the world as an easily handled fuel with various uses as well as its ease of transportation andstorage. As crude oil is a rather sensitive commodity, the sales prices are often influenced by the conditions of the market.
However, the customers are not fixed in a long term, and the amount of the investment for production and transportation
facilities is small in comparison with that of natural gas. Furthermore, the time required for the development stage isrelatively short so that the company can gain profit comparatively quickly once the oil fields are discovered.
Natural gas is the most environmentally friendly fuel among fossil energies and its utilization is expected to bepromoted as a quick effective measure against global warming. Commercial production of natural gas requires substantial
investment and a long lead time of preparation for constructing liquefaction plants or pipelines. Since the buyer also must
make large investment in LNG receiving facilities, stable and long-term sales contracts are essential. With an assurance oflong term LNG supply to the customers, a relatively stable profitability is achieved while it is sensitive to oil pricefluctuations.
In acquiring new projects, we focus on a balance between crude oil and natural gas production to ensure efficient

10

investment with a view to securing long-term cash flow.
- Balancing the Project Phases among Exploration, Development and Production
Because crude oil and gas reserves are limited, we continuously seek to acquire new reserves in order to ensure stableprofitability. Therefore, we reinvest in exploration to discover new reserves while maintaining our cash flow fromproduction. Projects must be carried out continuously in order to allocate and balance our assets among exploration,
development and production stages. To achieve this balance, we will continue to negotiate the extension of the contracts
for the offshore Mahakam area and ADMA Block, which are our major production projects while investing in exploration,
producing and undeveloped oil and gas assets and further pursuing corporate M&A opportunities.
- Balancing Contractual Arrangements
We intend to diversify the risk of oil price volatility by balancing contractual arrangements among production sharing
contracts or concession contracts, for which profit is linked to the price of oil, with service contracts or fixed margin
contracts, for which profitability is less influenced by oil prices.
ⅱ) Enhance Activities and Capabilities as Operator
In acting as Operator, we face managerial issues such as the difficulty in securing manpower and the heavy burden offinancing. However, involvement as Operator also increases our opportunities to obtain new working interests by improving
our technological capabilities and winning recognition from oil and gas producing countries and international oil companies.
The Company is pursuing opportunities to act as Operator, such as Ichthys and Abadi, with enhanced technologicalcapabilities resulting from business integration.
ⅲ) Strengthening Relationships with Leading Domestic and International Oil and Gas Companies
Developing petroleum and gas involves considerable risks. Large-scale projects in particular require huge investment,
presenting an insuperable obstacle for a single company. Companies form a consortium to share the risks, and this is aninternational practice, too. The Company plans to expand its business and to diversify risks by increasing opportunities toparticipate in projects through enhanced cooperation with major international oil companies, national oil companies in oil andgas producing countries as well as leading private oil resource developers, trading companies and other energy-relatedcompanies.
②

Strengthening Gas Supply Chain
The Company aims to expand operations in the domestic natural gas market, which represents a stable base of earnings
that is expected to grow. As well as building a natural gas pipeline network to supply the promising market in the
Kanto-Koshinetsu region, we plan to strengthen production system in the key Minami Nagaoka gas field. We also own
promising assets, primarily natural gas, in Indonesia and Australia and other areas to ensure our long-term growth. We will
strengthen our gas business integration that organically links these overseas gas assets with our domestic infrastructure (gassupply chain), as an aggressive pursuit of the enlarged business domain including power generation.

③

Development of New Business considering the production start schedule of Ichthys and other operator projects.
The Company is positioned for “Evolvement into a company that offers diversified forms of energy” as one of our
medium-to long-term strategies, and has been doing businesses based on this strategy. Our main goal is to live with the global
community and to contribute to the sustainable social development by growing ourselves to be an energy company, which iscapable of supplying a variety of environmentally friendly energies in addition to oil and natural gas. We are challenging todevelop new business areas in cooperation with domestic and international companies, universities and others. In particular,
we pursue opportunities to participate in or develop new business for renewable energies such as photovoltaic and solar
thermal power generation, wind power generation, geothermal power generation, biomass fuel, and energy utilization
technologies using hydrogen, fuel cell and high performance batteries.

④

Securing / Developing Human Resources and Building an Efficient Organizational Structure
In June 2012, the Company established its “New Ventures Division” to explore business opportunities and facilitate
decision-making for acquiring new projects. We are also in the process of strengthening our business execution system in amanner that will allow us to meet our expanded gas supply chain. Also we will secure and utilize global human resources withdiverse experiences and values. Through these efforts, we will establish an efficient business execution system.

⑤

Investment for Growth and Return for Shareholders
For the growth of the Company, we will steadily carry out investment activities in the medium- to long-term while
maintaining the soundness of our financial position. Considering the production startup schedule of Ichthys and other operator
projects, we will realize an appropriate level of return for shareholders. We will also enhance management efficiency befitting
top class international oil and gas E&P companies.

⑥ Responsible Management as a Global Companyⅰ) Enhance stakeholder communications, establish corporate governance and compliance and Promote CSR management
The Company will continue to promote active information disclosure and communication so as to reach out to our broadly
based stakeholders. We implemented some measures to reinforce our corporate governance from a global perspective in 2012.
Specifically we established the “INPEX Advisory Committee” on October 2012. We will further improve corporate
governance, compliance and HSE (Health, Safety and Environment) management systems. The CSR Committee was set up
to push forward a company-wide CSR promoting system to reinforce CSR management.
ⅱ) Health, Safety and Environmental Efforts

11

The Company has organized integrated HSE management system in line with international standards and has been trying
hard to secure the safety and health of people concerned in our business and the environment. The Company places preventionof incident as the top priority and positively address to improve required documents including manuals and to develop skills
through personnel training and education for emergency situation. As for environmental issues, particularly global warming,
we make every effort to minimize the effects on surrounding areas when we explore for, develop energy resources, produce
and sell energy. Also we are working to reduce our greenhouse gas emission unit, reduce emissions of chemical substances,suppress emissions into the atmosphere and river systems, prevent soil pollution and reduce waste and conserve biologicaldiversity. And through our global activities, we appropriately evaluate security risks of each country and area where we
operate, and will implement measures for minimizing and protecting from them.
Based on the mission to supply energy in a stable and efficient manner thereby contribute to the good of society, and theactivities in line with the Vision, the Company will improve our corporate value over the long term with a view to securing
steady growth.

12更新日時:2013/05/09 16:51:00 印刷日時:13/05/09 16:51

ァイル名:③-1H25.3_aBS【済】.doc

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)Accounts

As of March 31, 2012

As of March 31, 2013

(Assets)
Current assets
Cash and deposits

275,903

483,814

Accounts receivable-trade119,459

117,411

Marketable securities

399,382281,642

Inventories*1

11,977*1

15,409Deferred tax assets

18,692

10,111

Accounts receivable-other

71,911

94,333

Other

24,388

118,701

Allowance for doubtful accounts(13,013)(14,919)

Total current assets

908,702

1,106,504

Buildings and structures, net

107,300

102,965

Wells, net

26,827

19,777

Machinery, equipment and vehicles, net

54,462

71,477Land

20,07019,560Construction in progress

167,779

359,429

7,257

11,330

Fixed assets
Tangible fixed assets

Other, net
Total tangible fixed assets*2,4,5 383,697*2,4,5584,541

Intangible assets
Goodwill

94,601

87,840Exploration and development rights

118,007

118,869

Mining rights

16,492

167,178

Other

4,216

6,266

Total intangible assets*5

233,317*5

380,155*3,4

886,222*3,4

673,129

Investments and other assets
Investment securities
Long-term loans receivable

48,1097,263

Long-term time deposits

55,000287,273

Recoverable accounts under production
sharing

568,318

590,565

Deferred tax assets

30,55440,076

Other

*3,4

Allowance for doubtful accounts

60,141*3,4

65,433

(715)

(793)

(100,671)(112,870)(6,280)(5,119)Total investments and other assets

1,540,679

1,544,957

Total fixed assets

2,157,695

2,509,654

3,066,397

3,616,158

Allowance for recoverable accounts
under production sharing
Allowance for investments in exploration

Total assets13更新日時:2013/05/09 16:51:00 印刷日時:13/05/09 16:51

ァイル名:③-1H25.3_aBS【済】.doc(Millions of yen)Accounts

As of March 31, 2012

As of March 31, 2013

(Liabilities)
Current liabilities
Accounts payable-trade30,228

Short-term loans*4

Income taxes payable

4,801

41,401*4

139,144

Accounts payable-other*4

Provision for exploration projects

133,153

8,560
152,681*4

133,232

5,551

26,856

Accrued bonuses to officers

128

127

Asset retirement obligations

3,337

3,812

Other

51,49848,303

Total current liabilities

367,843414,976

Long-term liabilities
Long-term debt

*4313,972*4

466,908

Deferred tax liabilities

43,17834,987

Accrued retirement benefits to employees

6,340

8,580

Provision for loss on business

―

3,705

Accrued special repair and maintenance

367

277

9,804

13,581

Asset retirement obligations
Other

*4

Total long-term liabilities

10,697*4

2,156

384,361

530,198752,204

945,174

Common stock

290,809290,809

Capital surplus

679,287

679,287

Retained earnings

1,219,526

1,375,106

Treasury stock(5,248)(5,248)2,184,375

2,339,956

Unrealized holding gain on securities

6,952

34,741

Unrealized gain from hedging instruments

4,118

16,243

Translation adjustments(16,195)

90,350Total accumulated other comprehensive income(5,124)

141,336

Minority interests

134,941

189,691

Total net assets

2,314,193

2,670,983

Total liabilities and net assets

3,066,397

3,616,158

Total liabilities(Net assets)
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income1415ァイル名:③-2H25.3_bPL_包括利益【済】.doc

更新日時(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
For the year ended
March 31, 2012

Accounts

Net sales

For the year ended
March 31, 2013

1,186,731

1,216,533

Cost of sales

395,442426,326

Gross profit

791,288790,206

Exploration expenses

11,747

20,124*1,2

Selling, general and administrative expenses

70,184*1,2

76,634

709,357

693,447

Interest income

4,399

8,734

Dividend income

6,993

7,832

47

25,449Equity in earnings of affiliates

6,638

―

Gain on transfer of mining rights

70,26050,173

Other

13,743

6,477

Total other income

102,082

98,666

1,227

1,518

―

1,041

14,81615,131518

12,452Foreign exchange loss

14,64030,055

Other

13,197

13,769Total other expenses

44,40073,968

Ordinary income

767,038

718,146

Income before income taxes and minority interests

767,038

718,146

Income taxes-current

543,156

539,207

Income taxes-deferred(6,223)(9,932)

Total income taxes

536,933

529,275

Income before minority interests

230,105

188,870

Minority interests

36,104

5,909

Net income

194,000

182,961

Operating income
Other income

Gain on sales of investment securities

Other expenses
Interest expense
Equity in losses of affiliates
Provision for allowance for recoverable accounts
under production sharing
Provision for exploration projects

1516ァイル名:③-2H25.3_bPL_包括利益【済】.doc

更新日時

Consolidated Statements of Comprehensive Income(Millions of yen)
For the year ended
March 31, 2012

Accounts

Income before minority interests

For the year ended
March 31, 2013

230,105

188,870

Unrealized holding gain on securities

5,498

27,787

Unrealized gain from hedging instruments

4,118

16,769Translation adjustments

2,082

105,692

Share of other comprehensive income of associates
accounted for by the equity method(1,134)(1,577)

Other comprehensive income*1

Total other comprehensive income
Comprehensive income

10,564*1

148,671

240,669

337,542

Shareholders of INPEX CORPORATION

204,267

329,422

Minority interests

36,401

8,119

Total comprehensive income attributable to16

更新日時:2013/05/09 16:51:00 印刷日時:13/05/09 16:51

ファイル名:③-3H25.3_連結変動計算書【済】.doc(3) Consolidated Statements of Changes in Net Assets(Millions of yen)Accounts

For the year ended
March 31, 2012

For the year ended
March 31, 2013

Shareholders’ equity
Common stock
Balance at the beginning of the period

290,809290,809

Balance at the end of the period

290,809290,809

Balance at the beginning of the period

679,287

679,287

Balance at the end of the period

679,287

679,287

1,047,431

1,219,526

Cash dividends paid

(21,905)(27,381)Net income

194,000

182,961

Total changes during the period

172,095

155,580

1,219,526

1,375,106

Balance at the beginning of the period(5,248)(5,248)

Balance at the end of the period(5,248)(5,248)2,012,280

2,184,375

Cash dividends paid

(21,905)(27,381)Net income

194,000

182,961

Total changes during the period

172,095

155,580

2,184,375

2,339,956

Capital surplus

Retained earnings
Balance at the beginning of the period
Changes during the period

Balance at the end of the period
Treasury stock

Total shareholders’ equity
Balance at the beginning of the period
Changes during the period

Balance at the end of the period17

更新日時:2013/05/09 16:51:00 印刷日時:13/05/09 16:51

ファイル名:③-3H25.3_連結変動計算書【済】.doc(Millions of yen)Accounts

For the year ended
March 31, 2012

For the year ended
March 31, 2013

Accumulated other comprehensive income
Unrealized holding gain on securities
Balance at the beginning of the period

1,455

6,952

Other changes in items other than thosein shareholders’ equity, net

5,497

27,788

Total changes during the period

5,497

27,788

Balance at the end of the period

6,952

34,741―

4,118

Other changes in items other than thosein shareholders’ equity, net

4,118

12,125

Total changes during the period

4,118

12,125

Balance at the end of the period

4,118

16,243(16,847)(16,195)

Other changes in items other than thosein shareholders’ equity, net

651

106,546

Total changes during the period

651

106,546

Balance at the end of the period(16,195)

90,350(15,391)(5,124)

Other changes in items other than thosein shareholders’ equity, net

10,266

146,460

Total changes during the period

10,266

146,460

Balance at the end of the period(5,124)

141,336

100,493

134,941

Other changes in items other than thosein shareholders’ equity, net

34,44854,749Total changes during the period

34,44854,749Balance at the end of the period

134,941

189,691

Changes during the period

Unrealized gain from hedging instruments
Balance at the beginning of the period
Changes during the period

Translation adjustments
Balance at the beginning of the period
Changes during the period

Total accumulated other comprehensive
incomeBalance at the beginning of the period
Changes during the period

Minority interests
Balance at the beginning of the period
Changes during the period18

更新日時:2013/05/09 16:51:00 印刷日時:13/05/09 16:51

ファイル名:③-3H25.3_連結変動計算書【済】.doc(Millions of yen)Accounts

For the year ended
March 31, 2012

For the year ended
March 31, 2013

Total net assets
Balance at the beginning of the period

2,097,382

2,314,193

Cash dividends paid

(21,905)(27,381)Net income

194,000

182,961

Other changes in items other than thosein shareholders’ equity, net

44,714201,210

Total changes during the period

216,810356,790

Balance at the end of the period

2,314,193

2,670,983

Changes during the period19

- 20 -- 20 -ファイル名:③(4) Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
March 31, 2012

Accounts

For the year ended
March 31, 2013

Cash flows from operating activities
Income before income taxes and minority interests

767,038

718,146

Depreciation and amortization

48,026

51,915

Amortization of goodwill

6,760

6,760

Provision for allowance for recoverable accounts
under production sharing

18,99016,353

Provision for exploration projects(3,915)

21,132

Provision for accrued retirement benefits to employees

(637)

2,285

Other provisions

(25)

5,546

(11,393)(16,567)Interest expense

1,227

1,518

Foreign exchange loss

5,334

16,329Equity in (earnings) losses of affiliates(6,638)

1,041

Gain on transfer of mining rights(70,260)(50,173)(47)(25,449)

53,54354,086(21,041)(21,079)(23,816)

2,795

194

(3,231)

Accounts payable-trade

6,561

11,029Accounts receivable-other(19,773)

4,909

Accounts payable-other

40,942(900)

Advances received

23,890(24,636)

417

3,091

Subtotal

815,381774,906

Interest and dividends received

16,996

19,652

Interest paid

(943)

(1,344)

Income taxes paid

(510,742)(540,868)

Net cash provided by operating activities

320,691

252,346

Interest and dividend income

Gain on sales of investment securities
Recovery of recoverable accounts under
production sharing (capital expenditures)
Recoverable accounts under production
sharing (operating expenditures)
Accounts receivable-trade
Inventories

Other

20

- 21 -- 21 -ファイル名:③(Millions of yen)
For the year ended
March 31, 2012

Accounts

For the year ended
March 31, 2013

Cash flows from investing activities
Increase in time deposits(88,771)(299,460)

Decrease in time deposits

6,064

134,161

Increase in long-term time deposits―(252,082)

Decrease in long-term time deposits

―

5,000

(68,317)(189,153)

Proceeds from sales of tangible fixed assets

314

116

Payments for purchases of intangible assets(1,367)(4,256)

Payments for purchases of marketable securities(4,090)(17,709)

Proceeds from sales and redemptions of marketable securities

136,614366,633

Payments for purchases of investment securities(238,567)(90,830)

Proceeds from sales and redemptions of investment securities

20,67270,902

Investment in recoverable accounts under
production sharing (capital expenditures)(82,915)(82,695)

3,758

(85)

(38,094)(141,222)

Collection of long-term loans receivable

3,600

119,238

Payments for purchase of mining rights―(176,231)

Proceeds from transfer of mining rights

71,486

56,799Other(1,252)

11,005(280,864)(489,870)

(40)

991

Proceeds from long-term debt

50,913

121,571

Repayments of long-term debt

(4,316)(4,681)

Proceeds from minority interests for additional shares

9,723

55,852

Cash dividends paid

(21,922)(27,385)

Dividends paid to minority shareholders(4,991)(4,991)(71)(4,286)29,294137,069

Effect of exchange rate changes on cash and cash equivalents(2,663)51,498Net increase (decrease) in cash and cash equivalents

66,458(48,956)

Cash and cash equivalents at beginning of the period

182,025

249,233

Increase in cash and cash equivalents from newly consolidated
subsidiary

750

439

Decrease in cash and cash equivalents resulting from exclusionof subsidiaries from consolidation

―

(858)

Payments for purchases of tangible fixed assets

Decrease (increase) in short-term loans receivable
Long-term loans madeNet cash used in investing activities
Cash flows from financing activities
Decrease (increase) in short-term loans

Other
Net cash provided by financing activities

Cash and cash equivalents at end of the period*121249,233*1

199,858

(5) Notes to Consolidated Financial Statements(Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going
concern)
None(Basis of Presenting Consolidated Financial Statements)
1. Scope of consolidation
Number of consolidated subsidiaries: 61
Names of major subsidiaries;
Japan Oil Development Co., Ltd., INPEX Alpha, Ltd., INPEX Natuna, Ltd., INPEX Sahul, Ltd., INPEX Southwest
Caspian Sea, Ltd., INPEX Gas British Columbia, Ltd., INPEX North Caspian Sea, Ltd., INPEX Browse, Ltd., INPEX
Holdings Australia Pty Ltd, INPEX Ichthys Pty Ltd, INPEX Oil & Gas Australia Pty Ltd and INPEX Masela, Ltd.
During this period:
Number of companies newly included in the scope of consolidation: 7
Number of companies excluded from the scope of consolidation: 5
Details for the above changes:
1) INPEX South Iraq, Ltd., INPEX Angola Block 14 Ltd., INPEX Offshore East India, Ltd., INPEX Mozambique, Ltd.
and another have been newly included due to establishment of the companies.
2) INPEX Oil & Gas Australia Pty Ltd and INPEX Gas British Columbia, Ltd. have been newly included due
to an increase in materiality of the companies.
3) INPEX Offshore Northeast Mahakam, Ltd., INPEX West Arguni, Ltd., INPEX East Arguni, Ltd. and The Egyptian
Petroleum Development Co., Ltd. have been excluded due to completion of liquidation.
4) Teiseki Propane Co., Ltd. has been excluded due to a decrease in ownership percentage caused by merger with Tokyo
Gas Energy Co., Ltd. on July, 1, 2012.
Names of major non-consolidated subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C. V. and TELNITE CO.,LTD.
(Reason for exclusion from the scope of consolidation)
Those companies are not consolidated because their total assets, total net sales, total net income (the equity portion) andtotal retained earnings (the equity portion) do not have significant impact on the consolidated financial statements.
Name of an entity that is not accounted for as our subsidiary even though the Company owns the majority vote:
Ichthys LNG Pty Ltd(Reason for not accounted for as our subsidiary)
The Company owns the majority vote of Ichthys LNG Pty Ltd through INPEX Holdings Australia Pty Ltd. However,since both parties’ affirmative votes are required for important resolutions based on the shareholders agreement between
INPEX Holdings Australia Pty Ltd and TOTAL E&P Holding Ichthys, Ichthys LNG Pty Ltd is considered to be an affiliate
accounted for by the equity method.
2. Application of equity method
Number of non-consolidated subsidiaries accounted for by the equity method: None
Number of affiliates accounted for by the equity method: 15
Names of major affiliates:
Angola Block 14 B.V., MI Berau B.V., Angola Japan Oil Co., Ltd., INPEX Offshore North Campos, Ltd. and Ichthys LNG
Pty Ltd
During this period:
Number of companies newly included as affiliates accounted for by the equity method : 2
Details for the above changes:
1) Angola Block 14 B.V. has been newly included due to establishment of the company.
2) Tokyo Gas Energy Co., Ltd. has been newly included due to changes in ownership percentage caused by merger.
Names of major non-consolidated subsidiaries and affiliates not accounted for by the equity method:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C.V., TELNITE CO., LTD. and Tangguh project22

management Co., Ltd.
(Reason for not applying the equity method)
These subsidiaries and affiliates are not accounted for by the equity method because their total net income (the equity
portion) and total retained earnings (the equity portion) do not have significant impact on the consolidated financial
statements.
Procedures for application of the equity method:
Regarding affiliates accounted for by the equity method having a different closing date from the consolidated closing date,
the Company used the financial statements of each affiliate prepared as of its closing date. For certain affiliates, however,
the Company used financial statements prepared for consolidation purposes as of the consolidated closing date.

3. Closing dates for the fiscal year of consolidated subsidiaries
For the 43 companies for which the closing dates differ from the consolidated closing date, including, but not limited to,
INPEX Sahul, Ltd. and INPEX Masela, Ltd., the Company uses the financial statements for the year ended December 31.
However, the necessary adjustments have been made to the financial statements of those companies to reflect any
significant transactions made between the Company’s closing date and those of the consolidated subsidiaries.
For the 11 companies including, but not limited, Japan Oil Development, Co., Ltd., INPEX Southwest Caspian Sea, Ltd.,and INPEX North Caspian Sea, Ltd., INPEX Holdings Australia Pty Ltd and INPEX Ichthys Pty Ltd, we use their financial
statements for the year ended on the consolidated closing date even though their closing date is December 31.

4. Accounting policies
1) Valuation method for significant assets(a) Securities
Other securities
With a determinable market value
Other securities with a determinable market value are stated at fair value with any changes in unrealized holding gain or
loss, net of the applicable income taxes, included directly in net assets. Cost of securities sold is determined by themoving-average method.
Without a determinable market value
Other securities without a determinable market value are stated at cost determined by the moving-average method.
(b) Derivatives
Fair value(c) Inventories
Overseas inventories
Carried mainly at cost, determined by the average cost method (balance sheet value is carried at the lower of cost or
market)Domestic inventories
Carried mainly at cost, determined by the moving-average method (balance sheet value is carried at the lower of cost or
market)2) Depreciation method of significant depreciable assets(a) Tangible fixed assets (except leased assets)
Depreciation of mining facilities is mainly computed by the unit-of-production method. For other tangible fixed assets,straight-line method of depreciation is applied.
Useful lives of significant fixed assets are as follows:
Buildings and structures: 2-60 years
Wells: 3 years
Machinery, equipment and vehicles: 2-22 years(b) Intangible assets (except leased assets)
Exploration and development rights
Exploration and development rights at the exploration stage are fully amortized in the consolidated fiscal year. Such rights
which are at the production stage are amortized by the unit-of-production method.
Mining rights
Mining rights are mainly amortized by the unit-of-production method.
Other
Other intangible assets are mainly amortized by the straight-line method.

23

Software for internal use is amortized over 5 years.
(c) Leased assets
Leased assets for financing lease transactions whose ownership are not to be transferred:
Depreciation of these assets is calculated based on the straight-line method over the lease period assuming no residual
value.
3) Basis for significant allowances(a) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at an amount determined based on the historical experience of bad debt withrespect to ordinary receivables, plus an estimate of uncollectible amounts determined by reference to specific doubtfulreceivables from customers which are experiencing financial difficulties.
(b) Allowance for recoverable accounts under production sharing
Allowance for recoverable accounts under production sharing is provided for probable losses on specific investments
made under production sharing contracts.
(c) Allowance for investments in exploration
Allowance for investments in exploration is provided for future potential losses on investments in exploration companies
at an estimated amount based on the net assets of the investees.
(d) Provision for exploration projects
Provision for exploration projects is provided for future expenditures of consolidated subsidiaries at exploration stage
based on schedule of investments in exploration.
(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at expected payment amount for the fiscal year.
(f) Accrued retirement benefits to employees
Accrued retirement benefits to employees are provided at the amount calculated based on the expected retirement benefit
obligation and the estimated value of pension plan assets at the end of this period. Because certain subsidiaries areclassified as small enterprises, we employ a simplified method (at the amount which would be required to be paid if allactive employees voluntarily terminated their employment as of the balance sheet date) for the calculation of theretirement benefit obligation of the subsidiaries.
Actuarial gains and losses are charged or credited to income as incurred.
(g) Provision for loss on business
Provision for loss on business is provided for future potential losses on crude oil and natural gas exploration, development,
production and sales business individually estimated for each project.
(h) Accrued special repair and maintenanceAccrued special repair and maintenance are provided for planned major repair and maintenance activities on tanks incertain subsidiaries at the amount being accumulated through the next activity.
4) Translation of consolidated subsidiaries’ significant assets and liabilities denominated in foreign currencies into yen in
preparation of the consolidated financial statements
Monetary assets and liabilities denominated in foreign currencies are translated into yen at the exchange rates prevailingat the balance sheet date. The resulting exchange gain or loss is credited or charged to income.
The revenue and expense accounts of the overseas subsidiaries are translated into yen at the average rates of exchange
during the period. The balance sheet accounts are translated into yen at the rates of exchange in effect at the balance sheet
date. Translation differences are presented as a component of translation adjustments and minority interests.
5) Accounting for major hedge transactions(a) Hedge accounting
The deferred hedge accounting method is used to process hedging transactions. The allocation method is applied toforeign exchange forwards that meet certain requirements. The special treatment is applied to the interest rate swaps thatmeet certain requirements.
(b) Hedging instruments and hedged items(Foreign currency)
Hedging instruments: Foreign exchange forward transactions
Hedged items: Forecasted transactions in foreign currencies(Interest rate)
Hedging instruments: Interest rate swap transactions
Hedged items: Interest payments on borrowings

24

(c) Hedging policy
The nominal amount of the derivative transaction is limited to within the scope of actual demand, and the Company does
not engage in speculative derivative transactions.
(d) Hedge effectiveness assessment method
The Company does not perform hedge effectiveness assessment of foreign exchange forward transactions since the main
conditions match with forecasted transactions in foreign currencies. The Company does not perform hedge effectivenessassessment of interest rate swap transactions since the special treatment is applied.
6) Amortization of Goodwill
Goodwill is amortized by the straight-line method over 20 years.
7) Scope of cash and cash equivalents in consolidated statement of cash flows
Cash (cash and cash equivalents) in the consolidated statement of cash flows consisted of cash on hand, cash in banks
which can be withdrawn on demand, and short-term investments with a maturity of three months or less when purchased
which can easily be converted to cash and are subject to little risk of change in value.
8) Other items important to the preparation of the consolidated financial statements(a) Consumption tax
Transactions subject to the consumption tax are recorded at amounts exclusive of the consumption tax.
(b) Recoverable accounts under production sharing
Cash investments made by the Company during exploration, development and production phases under a production
sharing contract are recorded as “Recoverable accounts under production sharing” so long as they are recoverable under
the terms of the relevant contract. When the Company receives crude oil and natural gas in accordance with the contract,
an amount corresponding to the purchase costs of the products (i.e., a cost recovery portion of the investments) is released
from this account.

25

(Changes in the Presentation)(Consolidated Balance Sheets)“Long-term time deposits”, previously included in “Other” in investments and other assets, is presented separately since it has
become more significant. As a result, ¥115,141 million which was recorded as “Other” in investments and other assets on the
consolidated balance sheet in the previous fiscal year is reclassified as ¥55,000 million of “Long-term time deposits” and¥60,141 million of “Other”.
(Consolidated Statements of Income)“Gain on sales of investment securities”, previously included in “Other” in other income, is presented separately since it has
become more significant. As a result, ¥13,790 million which was recorded as “Other” in other income on the consolidated
statement of income in the previous fiscal year is reclassified as ¥47 million of “Gain on sales of investment securities” and¥13,743 million of “Other”.
“Loss on business withdrawal”, previously presented separately in other expenses, is included in “Other” since it has becomeless significant. As a result, ¥5,370 million which was recorded as “Loss on business withdrawal” in other expenses on the
consolidated statement of income in the previous fiscal year is included in “Other”.
(Consolidated Statements of Cash Flows)“Gain on sales of investment securities”, previously included in “Other” in cash flows from operating activities, is presented
separately since it has become more significant. As a result, ¥369 million which was recorded as “Other” in cash flows fromoperating activities on the consolidated statement of cash flows in the previous fiscal year is reclassified as ¥(47) million of“Gain on sales of investment securities” and ¥417 million of “Other”.

26

更新日時:2013/05/09 16:52:00 印刷日時:13/05/09 16:52

ファイル名:④-2H25.3b連結BSPLCF注記【済】.doc(Consolidated Balance Sheets)*1 Major accounts included in inventories
As of March 31, 2012

As of March 31, 2013

Millions of yen

Millions of yen

4,797

5,651

82

70

7,097

9,687

Merchandise and finished goods
Work in process
Raw materials and supplies*2 Accumulated depreciation of tangible fixed assets
As of March 31, 2012
Accumulated depreciation of tangible fixed assets

As of March 31, 2013

¥567,304 million¥606,742 million*3 The Company has the following investments in subsidiaries and affiliates.
As of March 31, 2012

As of March 31, 2013

Millions of yen

Millions of yen

71,700110,654

25,61815,75877

80

Investment securities (equities)(of which investment in jointly controlled entities)
Other (investments and other assets)*4 Assets provided as collateral and collateral-backed debt are as follows:Collateralized Assets
As of March 31, 2012

As of March 31, 2013

Millions of yen

Millions of yen

Buildings and structures

2,250 (2,250)

2,091 (2,091)

Wells

2,737 (2,737)

1,213 (1,213)

Machinery, equipment and vehicles

9,190 (9,190)

8,974 (8,974)

Other (tangible fixed assets)
Investment securities
Other (investments and other assets)
Total

27

0 (0)

0 (0)

7,632 (―)

7,395 (―)

231 (―)

226 (―)

22,041 (14,177)

19,901 (12,279)

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ファイル名:④-2H25.3b連結BSPLCF注記【済】.doc

Secured debt
As of March 31, 2012

As of March 31, 2013

Millions of yen

Millions of yen

Short-term loans

1,588 (1,572)

996 (980)

Accounts payable-other

5,090 (4,783)

5,118 (4,733)

Long-term debt

2,434 (2,383)

1,437 (1,403)

16 (―)

16 (―)

9,129 (8,738)

7,569 (7,116)

Others (long-term liabilities)
Total

Amounts in parentheses () above represent foundation collateral and liabilities. In addition, the followings are pledged ascollateral for the Ichthys LNG project financing and the BTC pipeline project financing.
The Ichthys LNG project financing
As of March 31, 2012

As of March 31, 2013

Millions of yen

Millions of yen

Cash and deposits

―

3,602

Accounts receivable-other―160

Other (current assets)―

64,631

Land

―

133

Construction in progress―

172,377

Investment securities―

15,758

Total―

256,662

The BTC pipeline project financing
As of March 31, 2012
Investment securities

As of March 31, 2013

¥4,703 million¥5,239 million*5 Accumulated advanced depreciation deducted from acquisition costs of fixed assets related to contribution and others
As of March 31, 2012

As of March 31, 2013

Millions of yen

Millions of yen

1,387

1,393

Machinery, equipment and vehicles

259

239

Land

56

84

Other (intangible assets)

1―

Buildings and structures28

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ファイル名:④-2H25.3b連結BSPLCF注記【済】.doc

6 Contingent liabilities(1) The Company and its consolidated subsidiaries are contingently liable as guarantors of indebtedness of the following
companies:
As of March 31, 2012

As of March 31, 2013
Millions of yen

Millions of yen

Tangguh Trustee*

14,510

Tangguh Trustee*

15,463Ichthys LNG Pty Ltd

5,190

5,481

Fujian Tranche *5,143

Fujian Tranche *Sakhalin Oil and Gas Development
Co., Ltd.

Sakhalin Oil and Gas Development
Co., Ltd.
INPEX Offshore North Campos, Ltd.
Employees (housing loans)

3,866

INPEX Offshore North Campos, Ltd.

2,151

Employees (housing loans)

3,460
1,969
153

212

Total
31,074*Debt for investment funds of Tangguh LNG project through MI Berau B. V. and MI Berau Japan Ltd.

26,529(2) Guarantee for derivatives
As of March 31, 2012
Ichthys LNG Pty Ltd¥― million

As of March 31, 2013
¥ (4,872) million

The aforementioned derivative transactions are utilized to prevent exchange fluctuation risk regarding payments of development
costs for the Ichthys LNG project. The amount is valuation gain (loss) on the derivatives.

(3) Completion guarantee
Effective from the fiscal year ended March 31, 2013, in connection with the Ichthys LNG project financing, the Company andother project participants provide lenders with a completion guarantee based on each participating interest in addition tocollateralizing its assets.
The Company's portion of obligation with respect to the completion guarantee is as follows:
As of March 31, 2012
Completion guarantee (the Company's portion)¥― million

29

As of March 31, 2013
¥128,863 million

更新日時:2013/05/09 16:52:00 印刷日時:13/05/09 16:52

ファイル名:④-2H25.3b連結BSPLCF注記【済】.doc(Consolidated Statements of Income)*1 Major accounts included in selling, general and administrative expenses are as follows:
For the year ended
March 31, 2012

For the year ended
March 31, 2013

Millions of yen

Millions of yen

Personnel expenses

16,04918,636

Including provision for accrued retirement benefits to employees

529

2,246

Including provision for accrued bonuses to officers

135

132

Taxes

7,100

7,240

Freight expenses

6,074

7,178

Depreciation expenses

21,89822,899Amortization of goodwill

6,760

6,760

*2 Research and development expenses included in general and administrative expenses:
For the year ended
March 31, 2012

For the year ended
March 31, 2013

¥401 million¥98 million(Consolidated Statements of Comprehensive Income)*1 Reclassification adjustments and income tax effects associated with other comprehensive income
For the year ended
March 31, 2012
Millions of yen

For the year ended
March 31, 2013
Millions of yen

Unrealized holding gain on securities
Amount recognized during the period

5,081

29,074

Reclassification adjustment

538

(137)

Before income tax effect5,620

28,936

Amount of income tax effect(121)(1,149)Unrealized holding gain on securities

5,498

27,787

Unrealized gain from hedging instruments
Amount recognized during the period

6,455

24,873

Amount of income tax effect(2,337)(8,103)

Unrealized gain from hedging instruments

4,118

16,7692,082

105,692(1,134)(1,964)―387(1,134)(1,577)

10,564

148,671

Translation adjustments
Amount recognized during the period
Share of other comprehensive income of associates accounted for by the equity
methodAmount recognized during the period
Adjustment on cost of asset acquisition
Share of other comprehensive income of associates accounted for by theequity method
Total other comprehensive income30

更新日時:2013/05/09 16:52:00 印刷日時:13/05/09 16:52

ファイル名:④-2H25.3b連結BSPLCF注記【済】.doc(Consolidated Statements of Changes in Net Assets)
For the year ended March 31, 2012
1. Type and number of shares issued and treasury stock(Shares)

Balance as ofApril 1, 2011

Increase

Balance as ofMarch 31, 2012

Decrease

Number of shares
3,655,809－－

3,655,809

1

－

－

1

3,655,810－－

3,655,810

Common stock

4,916

－

－

4,916

Total

4,916

－

－

4,916

Cash dividends paid
(Millions of yen)

Dividends
per share(Yen)

Record date

Effective date

10,952

3,000

March 31, 2011

June 29, 2011

0

3,000

March 31, 2011

June 29, 2011

10,9523,000

September 30, 2011

December 1, 2011

0

3,000

September 30, 2011

December 1, 2011

Common stock
Class A stock
Total
Treasury stock

2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders
June 28, 2011
Board of directors’
meetingNovember 4, 2011

Type ofshare
Commonstock
Class Astock
Commonstock
Class Astock(2) Dividends, whose record date was in the year ended March 31, 2012, and whose effective date will be in the next
fiscal year
Cash dividends
Dividends
Type of
Source ofpaid
per share
Record date
Effective date
Resolution
share
dividends(Millions of yen)
(Yen)
CommonRetained
Ordinary general
14,6034,000 March 31, 2012 June 27, 2012stock
earnings
meeting ofshareholders
Class A
Retained
04,000 March 31, 2012
June 27, 2012
June 26, 2012stock
earnings31

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ファイル名:④-2H25.3b連結BSPLCF注記【済】.doc

For the year ended March 31, 2013
1. Type and number of shares issued and treasury stock(Shares)

Balance as ofApril 1, 2012

Increase

Balance as ofMarch 31, 2013

Decrease

Number of shares
Common stock―

3,655,809

Class A stock
Total

―

3,655,809

1

―

―

1

3,655,810――

3,655,810

Treasury stock
Common stock

4,916

―

―

4,916

Total

4,916

―

―

4,916

2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders
June 26, 2012
Board of directors’
meetingNovember 6, 2012

Type ofshare
Commonstock
Class Astock
Commonstock
Class Astock

Cash dividends paid
(Millions of yen)

Dividends
per share(Yen)

14,603

4,000

March 31, 2012

June 27, 2012

0

4,000

March 31, 2012

June 27, 2012

12,7783,500

September 30, 2012

December 3, 2012

0

3,500

September 30, 2012

December 3, 2012

Record date

Effective date(2) Dividends, whose record date was in the year ended March 31, 2013, and whose effective date will be in the next
fiscal year
Cash dividends
Dividends
Type of
Source ofpaid
per share
Record date
Effective date
Resolution
share
dividends(Millions of yen)
(Yen)
CommonRetained
Ordinary general
12,7783,500 March 31, 2013
June 26, 2013stock
earnings
meeting ofshareholders
Class A
Retained
03,500 March 31, 2013
June 26, 2013
June 25, 2013stock
earnings32

更新日時:2013/05/09 16:52:00 印刷日時:13/05/09 16:52

ファイル名:④-2H25.3b連結BSPLCF注記【済】.doc(Consolidated Statements of Cash Flows)*1 Cash and cash equivalents at the end of the period are reconciled to the account reported in the consolidated balance sheet
as follows:
For the year ended
March 31, 2012
Millions of yen

For the year ended
March 31, 2013
Millions of yen

Cash and deposits

275,903

483,814

Time deposits for more than three months and others(84,664)(284,469)

Marketable securities (commercial paper)

54,495―Marketable securities (MMF and others)

699

513

Marketable securities (certificate of deposit)
Cash and cash equivalents

33

2,800

―

249,233

199,858

更新日時:2013/05/09 16:52:00 印刷日時:13/05/09 16:52

ファイル名:④-3H25.3cセグメント情報等【済】.doc(Segment Information and Others)(Segment information)
1.

Overview of reportable segments

For the Company’s oil and natural gas development activities, the Board of Directors make the Group management decisions
with respect to each mining area and others, the separate financial information of which is available.
The Company operates oil and natural gas businesses globally, thus, the Company’s reportable segments are entities of individual
mining areas and others aggregated by geographical region. These are classified into following segments: “Japan”, “Asia & Oceania” (principally Indonesia, Australia and East Timor), “Eurasia (Europe & NIS)” (principally Azerbaijan), “Middle East & Africa” (principally UAE) and “Americas.”
The Company produces oil and natural gas in each segment. In addition, the Company conducts marketing activities for petroleum products and others in “Japan” segment.

2. Methods of calculating of sales and income (loss), identifiable assets, and other items by reportable segment
Accounting method for reportable segment is the substantially same as presentations on “Basis of Presenting Consolidated Financial Statements.”

3.

Information on sales and income (loss), identifiable assets, and other items by reportable segment

For the year ended March 31, 2012 (April 1, 2011 through March 31, 2012)(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania(1) Sales to third parties

113,662

483,187

84,325500,0325,524

1,186,731―

1,186,731(2) Intercompany sales
and transfers between
segments

―

―

―

―

―

―

―

―

Total

113,662

483,187

84,325500,0325,524

1,186,731―

1,186,731

Segment income (loss)

24,606

299,598

47,075354,135(5,517)

719,899(10,542)

709,357

Segment assets

260,596445,735

515,537

198,987

67,9281,488,784

1,577,613

3,066,397

Total

*1

*2

Net sales

Other items
Depreciation and amor18,485
12,774
8,502
6,550
373
46,686
1,339
48,026
tization
Amortization of good(192)
(192)
6,952
6,760
―
―
―
―
will
Investment to affiliates
6,859
9,606
65,621
65,621
49,156―――accounted for by theequity method
Increase of tangible
fixed assets and intan35,954
27,146518
10,387
2,956
76,963
2,105
79,068gible assets
Note: 1. (1) Adjustments of segment income of ¥(10,542) million include elimination of intersegment transactions of ¥229 million and corporate expenses of ¥(10,771) million. Corporate expenses are mainly amortization of goodwill and general administrative expenses not attributable to a reportable segment.
(2) Adjustments of segment assets of ¥1,577,613 million include elimination of intersegment transactions of ¥(2,744)
million and corporate assets of ¥1,580,357 million. Corporate assets are mainly goodwill, cash and deposits, marketable securities, investment securities and assets concerned with the administrative divisions not attributable to a reportable segment.
(3) Adjustments of depreciation and amortization of ¥1,339 million consist mainly of depreciation of corporate assets.
(4) Adjustments of amortization of goodwill of ¥ 6,952 million consist of amortization of goodwill not attributable to areportable segment.
(5) Adjustments of increase of tangible fixed assets and intangible assets of ¥2,105 million consist mainly of capital
expenditure to corporate assets.
2. Segment income was reconciled with consolidated operating income.

34

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For the year ended March 31, 2013 (April 1, 2012 through March 31, 2013)(Millions of yen)
Reportable segments
Eurasia
Middle East
(Europe &Americas& Africa
NIS)

Adjustments Consolidated

Japan

Asia &
Oceania(1) Sales to third parties

118,936

485,275

85,540520,835

5,944

1,216,533―

1,216,533(2) Intercompany sales
and transfers between
segments

―

―

―

―

―

―

―

―

Total

118,936

485,275

85,540520,835

5,944

1,216,533―

1,216,533

Segment income (loss)

28,568281,62241,751

357,343(6,089)703,196(9,748)693,447

Segment assets

265,467

690,763526,519

266,649

188,208

1,937,607

1,678,551

3,616,158

Total

*1

*2

Net sales

Other items
Depreciation and amor17,602
17,032
9,065
5,850
1,012
50,563
1,351
51,915tization
Amortization of good(192)
(192)
6,952
6,760
―
―
―
―
will
Investment to affiliates
53,243
4,159
106,076
106,076
1,856
46,817――accounted for by theequity method
Increase of tangible
fixed assets and intan24,655 203,852
1,024
20,594
108,373358,500
1,486
359,986
gible assets
Note: 1. (1) Adjustments of segment income of ¥(9,748) million include elimination of intersegment transactions of ¥225 million
and corporate expenses of ¥(9,974) million. Corporate expenses are mainly amortization of goodwill and general administrative expenses not attributable to a reportable segment.
(2) Adjustments of segment assets of ¥1,678,551 million include elimination of intersegment transactions of ¥(2,551)
million and corporate assets of ¥1,681,103 million. Corporate assets are mainly goodwill, cash and deposits, marketable securities, investment securities and assets concerned with the administrative divisions not attributable to a reportable segment.
(3) Adjustments of depreciation and amortization of ¥1,351 million consist mainly of depreciation of corporate assets.
(4) Adjustments of amortization of goodwill of ¥ 6,952 million consist of amortization of goodwill not attributable to areportable segment.
(5) Adjustments of increase of tangible fixed assets and intangible assets of ¥1,486 million consist mainly of capital
expenditure to corporate assets.
2. Segment income was reconciled with consolidated operating income.

(Relative information)
For the year ended March 31, 2012 (April 1, 2011 through March 31, 2012)
1. Products and service information(Millions of yen)
Crude oil
Sales to third parties

726,222Natural gas (excluding LPG)
404,735

LPG

Other

24,33031,443

Total
1,186,731

2. Geographical information(1) Sales(Millions of yen)
Asia & Oceania(excluding Singapore)Japan591,214Singapore

420,183

Other

135,759

Note: Sales by geographical area is determined based upon the final destination and customer.

35

Total
39,574

1,186,731

更新日時:2013/05/09 16:52:00 印刷日時:13/05/09 16:52

ファイル名:④-3H25.3cセグメント情報等【済】.doc(2) Tangible fixed assets(Millions of yen)Japan

Australia

Other

Total

77,980229,888

75,828383,697

3. Information by major customer(Millions of yen)
Customer

Sales

Relative reportable segment

PERTAMINA

245,942

Asia & Oceania

Idemitsu Kosan Co.,Ltd.

103,630

Middle East & Africa

For the year ended March 31, 2013 (April 1, 2012 through March 31, 2013)
1. Products and service information(Millions of yen)
Crude oil
788,135

Sales to third parties

Natural gas (excluding LPG)
370,528

LPG

Other

27,237

Total

30,631

1,216,533

2. Geographical information(1) Sales(Millions of yen)
Asia & Oceania(excluding Singapore)Japan
634,787

Singapore

421,504

Other

142,748

Total
17,492

1,216,533

Note: Sales by geographical area is determined based upon the final destination and customer.

(2) Tangible fixed assets(Millions of yen)Japan

Australia
235,674

Other
227,357

Total
121,509584,541

3. Information by major customer(Millions of yen)
Customer

Sales

Relative reportable segment

PERTAMINA

206,282

Asia & Oceania

Idemitsu Kosan Co.,Ltd.

132,908

Middle East & Africa(Information on impairment loss from fixed assets by reportable segment)
Disclosure has been omitted because it does not have significant impact on the consolidated financial statements.

36

更新日時:2013/05/09 16:52:00 印刷日時:13/05/09 16:52

ファイル名:④-3H25.3cセグメント情報等【済】.doc(Information on amortization of goodwill and unamortized balance by reportable segment)
For the year ended March 31, 2012 (April 1, 2011 through March 31, 2012)(Millions of yen)
Reportable segments
Japan

Asia &
Oceania

Eurasia(Europe & NIS)

Middle East
& Africa

Americas*1

Total

Eliminations
and other
*2

Total

Balance as of――――(2,739)(2,739)97,341
94,601March 31, 2012
Note: 1. This is the unamortized balance of negative goodwill acquired before April 1, 2010 and net amount of goodwill is statedon the balance sheet.
2. This is the unamortized balance of goodwill not attributable to a reportable segment.
3. Please refer to “Segment information” regarding to the amounts of amortization of goodwill.
For the year ended March 31, 2013 (April 1, 2012 through March 31, 2013)(Millions of yen)
Reportable segments
Japan

Asia &
Oceania

Eurasia(Europe & NIS)

Middle East
& Africa

Americas*1

Total

Eliminations
and other
*2

Total

Balance as of――――(2,547)(2,547)
90,38887,840March 31, 2013
Note: 1. This is the unamortized balance of negative goodwill acquired before April 1, 2010 and net amount of goodwill is statedon the balance sheet.
2. This is the unamortized balance of goodwill not attributable to a reportable segment.
3. Please refer to “Segment information” regarding to the amounts of amortization of goodwill.

(Information on negative goodwill by reportable segment)
None

37

ファイル名:(Financial Instruments)
1. Status of financial instruments
For the year ended March 31, 2012
(1) Policy regarding financial instruments
The Company raises funds for oil and gas development and production, construction or expansion of pipelines and LNG receiving terminal primarily from cash flow on hand and from bank loans. Oil and gas development projects are primarily
funded from long-term loans that the Company has secured from the Japan Bank of International Cooperation and Japanesecommercial banks. Japan Oil, Gas and Metals National Corporation has provided guarantees for the principal on certain outstanding amounts of the Company’s long-term loans. The Development Bank of Japan and Japanese commercial banks havebeen providing long-term loans for the construction or expansion of domestic pipelines and LNG receiving terminal. The
Company generally borrows with variable interest rates, while some loans are with fixed interest rate depending on the natureof each project. Regarding the financing policy, the Company manages funds mainly from cash on hand and government
bonds, which are considered of low-risk and high-liquidity. The Company limits derivative transactions for managing risks offorecasted transactions and portfolio assets, and does not engage in speculative derivative transactions.
(2) Details of financial instruments, associated risk and risk management(Credit risks related to trade receivables)
Trade receivables ―accounts receivable-trade and accounts receivable-other ― are comprised mainly from sales of oil andnatural gas. Main trading partners are national oil companies, major oil companies and others. In line with criteria for trading
and credit exposure management, the Company properly analyzes the status of trading partners for early detection and reduction of default risks.
(Market price fluctuation risk related to securities)
For marketable securities and investment securities exposed to market price fluctuation risk, analysis of market values is regularly reported to the Management Committee. For stocks, the Company holds the shares of trading partners and others to establish close and smooth relationship for the purpose of medium- to long-term stable business. Of these shares, the Company
partially holds for the purpose of investment. As for bonds, the Company mainly holds bonds with short-term maturities byconsidering medium- to long-term cash outflow forecast and market price fluctuation risk.
(Interest rate fluctuation risk related to short-term loans and long-term debt)
Loans are mainly for fund for oil and natural gas development projects and construction or expansion of domestic pipelinesand LNG receiving terminal and others. The borrowing period is determined considering financial prospects of the projectand useful lives of facilities. Loans with variable interest rates are exposed to interest rate fluctuation risk, however, theCompany analyzes the impact of interest rate fluctuation at the time of borrowing and once a year, and leverages fixed-rateloans or makes interest rate swap contracts with financial institutions as necessary.
(Exchange rates fluctuation risk related to assets and liabilities in foreign currencies)
As the most of the Company’s business consists of overseas business, the Company is exposed to exchange fluctuation risk
due to a large portion of monetary assets and liabilities held in foreign currencies such as cash and deposits, accounts receivables and loans required in overseas projects. As a result of fiscal year-end conversion, yen appreciation causes foreign exchange loss on assets and foreign exchange gain on liabilities while yen depreciation causes foreign exchange gain on assets
and foreign exchange loss on liabilities. For this reason, foreign exchange gain and loss are offset and the position between
assets and liabilities in foreign currencies is maintained. At present, the Company is in the position of incurring foreign exchange loss when foreign exchange rate proceeds to yen appreciation. The Company manages assets in foreign currencies toavoid excess holding of them in comparison with liabilities in foreign currencies. Regarding those planned expenditures inforeign currencies mainly for the Ichthys project, the Company manages exchange fluctuation risk through derivative transactions such as forward foreign exchange transactions, currency swaps and others as necessary.
(Management of derivative transactions)
For the above derivative transactions, the Company follows derivative transactions management outline. For derivativetransactions exposed to market price fluctuation, market values of these derivatives are regularly reported to the Management
Committee, and the Company only transacts with financial institutions with high credit ratings to reduce counterparty risks
for the use of derivatives.
(Management of the liquidity risk related to financing)
The finance unit controls cash management based on monthly financing plan prepared by each project division and securessufficient liquidity on hand to be prepared for liquidity risks.
(3) Supplementary explanation of items related to the market value of financial instruments
For nominal amounts and others regarding derivative transactions on “Derivatives Transactions”, its amounts do not indicate
market risks related to derivative transactions.

38

ファイル名:For the year ended March 31, 2013
(1) Policy regarding financial instruments
The Company raises funds for oil and gas development and production, construction or expansion of pipelines and LNG receiving terminal primarily from cash flow on hand and from bank loans. Oil and gas development projects are primarily
funded from long-term loans that the Company has secured from the Japan Bank of International Cooperation and Japanesecommercial banks. Japan Oil, Gas and Metals National Corporation has provided guarantees for the principal on certain outstanding amounts of the Company’s long-term loans. The Development Bank of Japan and Japanese commercial banks havebeen providing long-term loans for the construction or expansion of domestic pipelines and LNG receiving terminal. The
Company generally borrows with variable interest rates, while some loans are with fixed interest rate depending on the natureof each project. Regarding the financing policy, the Company manages funds mainly from cash on hand and government
bonds, which are considered of low-risk and high-liquidity. The Company limits derivative transactions for managing risks offorecasted transactions and portfolio assets, and does not engage in speculative derivative transactions.
(2) Details of financial instruments, associated risk and risk management(Credit risks related to trade receivables)
Trade receivables ―accounts receivable-trade and accounts receivable-other ― are comprised mainly from sales of oil andnatural gas. Main trading partners are national oil companies, major oil companies and others. In line with criteria for trading
and credit exposure management, the Company properly analyzes the status of trading partners for early detection and reduction of default risks.
(Market price fluctuation risk related to securities)
For marketable securities and investment securities exposed to market price fluctuation risk, analysis of market values is regularly reported to the Management Committee. For stocks, the Company holds the shares of trading partners and others to establish close and smooth relationship for the purpose of medium- to long-term stable business. Of these shares, the Company
partially holds for the purpose of investment. As for bonds, the Company mainly holds bonds with short-term maturities byconsidering medium- to long-term cash outflow forecast and market price fluctuation risk.
(Interest rate fluctuation risk related to short-term loans and long-term debt)
Loans are mainly for fund for oil and natural gas development projects and construction or expansion of domestic pipelinesand LNG receiving terminal and others. The borrowing period is determined considering financial prospects of the projectand useful lives of facilities. Loans with variable interest rates are exposed to interest rate fluctuation risk, however, theCompany analyzes the impact of interest rate fluctuation at the time of borrowing and once a year, and leverages fixed-rateloans or makes interest rate swap contracts with financial institutions as necessary.
(Exchange rates fluctuation risk related to assets and liabilities in foreign currencies)
As the most of the Company’s business consists of overseas business, the Company is exposed to exchange fluctuation risk
due to a large portion of monetary assets and liabilities held in foreign currencies such as cash and deposits, accounts receivables and loans required in overseas projects. As a result of fiscal year-end conversion, yen appreciation causes foreign exchange loss on assets and foreign exchange gain on liabilities while yen depreciation causes foreign exchange gain on assets
and foreign exchange loss on liabilities. For this reason, the Company tries to reduce exchange fluctuation risk maintaining
the position between assets and liabilities in foreign currencies. In addition, planned expenditures in foreign currencies for
the Ichthys project and others, the Company manages exchange fluctuation risk through derivative transactions such as forward foreign exchange transactions and others as necessary.
(Management of derivative transactions)
For the above derivative transactions, the Company follows derivative transactions management outline. For derivativetransactions exposed to market price fluctuation, market values of these derivatives are regularly reported to the Management
Committee, and the Company only transacts with financial institutions with high credit ratings to reduce counterparty risks
for the use of derivatives.
(Management of the liquidity risk related to financing)
The finance and accounting division controls cash management based on monthly financing plan prepared by each project
division and secures sufficient liquidity on hand to be prepared for liquidity risks.
(3) Supplementary explanation of items related to the market value of financial instruments
For nominal amounts and others regarding derivative transactions on “Derivatives Transactions”, its amounts do not indicate
market risks related to derivative transactions.

39

ファイル名:2.

Fair value of financial instruments
Carrying value on the consolidated balance sheets as of March 31, 2012 and 2013, fair value and the difference between
them are as shown below. Items for which it is extremely difficult to determine market value are not included in the following table (Please refer to Note 2).
As of March 31,2012(1) Cash and deposits(2) Accounts receivable-trade(3) Marketable securities and investment
securities
Total assets(1) Short-term loans(2) Long-term debt
Total liabilities
Derivatives(Millions of yen)
Carrying value
275,903
119,459
1,180,509

Fair value
275,903
119,459
1,180,509

1,575,872
4,801
313,972
318,774
7,338

1,575,872
4,830
316,131
320,961
7,338

As of March 31,2013

Difference
－
－
－
－
28
2,158
2,186
－

(Millions of yen)

Carrying value
Fair value
Difference(1) Cash and deposits
483,814483,847
32(2) Accounts receivable-trade117,411
117,411－(3) Marketable securities and investment
808,389
808,389－
securities(4) Long-term time deposits
287,273
289,006
1,733
Total assets
1,696,887
1,698,654
1,766(1) Short-term loans
8,560
8,507
(53)
(2) Long-term debt
466,908
456,403(10,505)
Total liabilities
475,469
464,910(10,558)
31,32931,329Derivatives (*)－(*) Net claims and debts arising from derivative transactions are presented on a net basis. In case the total amount is adebt amount, the above figure is negative.
Note 1: Methods of calculating of the fair value of financial instruments
Assets(1) Cash and deposits
The fair value of current portion of long-term time deposits included in cash and deposits, is calculated by the same method
as (4) Long-term time deposits. For the other cash and deposits, the relevant carrying value is used since the item is settled
in a short period of time and its market value is almost the same as the carrying value.
(2) Accounts receivable-trade
Since the item is settled in a short period of time and the fair value is almost the same as the carrying value, the relevant carrying value is used.
(3) Marketable securities and investment securities
The fair value of shares is determined by the market prices of exchanges, and the fair value of bonds is determined by market prices of exchanges or the prices presented by financial institutions. For further information on investment securities ofeach holding purpose, please refer to “Securities” section of the notes to consolidated financial statements.
(4) Long-term time deposits
The fair value of long-term deposits is calculated by applying a discount rate to the total of principal and interest. The discount rate is based on the assumed interest rate if a similar new deposit is entered into.
Liabilities(1) Short-term loans
The fair value of current portion of long-term debt included in short-term loans, is calculated by the same method as (2)Long-term debt. For the other short-term loans, the relevant carrying value is used since the item is settled in a short periodof time and its market value is almost the same as the carrying value.
(2)Long-term debt
The fair value of long-term debt is calculated by applying a discount rate to the total of principal and interest. The discountrate is based on the assumed interest rate if a similar new loan is entered into.
Derivatives
Please refer to “Derivative transactions” section of the notes to consolidated financial statements.

40ファイル名:

Note 2: Carrying value of financial instruments for which it is extremely difficult to determine fair value(Millions of yen)
As of March 31, 2012
As of March 31, 2013
Unlisted securities
28,39530,728Preferred securities
5,000
5,000
Stocks of subsidiaries and affiliates
71,700110,654
These financial instruments are assumed to have no market value and require excessive costs to estimate future cash flows, accordingly, these financial instruments are not included in “Assets (3) Marketable securities and investment securities”. For sharesof exploration companies among unlisted securities and stocks of subsidiaries and affiliates, the allowance is provided for investments in exploration at an estimated amount based on the financial position of the investees.

Note 3: Redemption schedules for monetary assets and securities with maturity dates subsequent to March 31, 2012 and 2013 are
as follows
As of March 31,2012(Millions of yen)

275,903
119,459

More than 1 year
but less than 5
years
－
－

More than 5
years but lessthan 10 years－－

335,500－
54,5006,890
792,252

375,000
63,50033,185
198,100
669,785

39,500－－－39,500483,814
117,411More than 1 year
but less than 5
years
－
－

More than 5
years but lessthan 10 years－－

167,000
33,5008,500
66,000－876,225

185,000
61,50028,197132,100
287,273694,070

31,500－－－－31,5001 year or less
Cash and deposits
Accounts receivable-tradeMarketable securities and investment
securities
Other securities:
Public bonds
Corporate bonds
Other bonds
Other
Total
As of March 31,2013

－
－

－
－
－
－
－
(Millions of yen)

1 year or less
Cash and deposits
Accounts receivable-tradeMarketable securities and investment
securities
Other securities:
Public bonds
Corporate bonds
Other bonds
Other
Long-term time deposits
Total

More than 10
years

More than 10
years
－
－

－
－
－
－
－
－

Note 4: Maturities for long-term loans payable and leased liabilities subsequent to March 31, 2012 and 2013 are as follows
As of March 31,2012(Millions of yen)
1 year or lessLong-term debt
Lease obligations
Total

4,681
52
4,734

More than 1 year
but less than 5
years
47,82796
47,924More than 5
years but lessthan 10 years
114,311
1
114,313

As of March 31,2013

151,833－
151,833(Millions of yen)
1 year or lessLong-term debt
Lease obligations
Total

More than 10
years

7,391
58
7,449

41

More than 1 year
but less than 5
years
127,878
127
128,005

More than 5
years but lessthan 10 years
241,460
11
241,471

More than 10
years
97,570－97,570ファイル名:(Securities)
1. Other securities as of March 31, 2012 and 2013
As of March 31,2012
Type of securities

Acquisition cost

Securities with carrying values exceeding theiracquisition costs(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Securities with acquisition costs exceeding theircarrying values(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Total

Carrying value

4,499

9,317

4,818

726,075
23,50037,395204,961
996,432

727,734
23,58837,503
209,955
1,008,098

1,658
88
107
4,993
11,66647,93944,103(3,835)30,19040,00050,882
7,817
176,829
1,173,261

29,95039,77850,843
7,734
172,410
1,180,509

(239)
(221)
(39)
(82)
(4,418)
7,248

As of March 31,2013
Type of securities

Acquisition cost

Securities with carrying values exceeding theiracquisition costs(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Securities with acquisition costs exceeding theircarrying values(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Subtotal
Total

42(Millions of yen)
Unrealized gain
(loss)

Carrying value(Millions of yen)
Unrealized gain
(loss)

11,937

21,925

9,988

356,283
60,05033,647205,184
667,103357,527
60,15137,549228,948
706,103

1,244
101
3,901
23,76338,99940,45137,824(2,627)

29,13635,000－527
105,116
772,219

28,981
34,966－513
102,285
808,389

(155)
(33)
－
(14)
(2,830)36,169

ファイル名:2. Other securities sold for the years ended March 31, 2012 and 2013
For the year ended March 31,2012
Type of securities(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) OtherTotal
For the year ended March 31,2013
Type of securities(1) Stock(2) Bonds
Public bonds
Corporate bonds
Other(3) Other
Total

Proceeds from sales－－(Millions of yen)
Loss on sales
－

82
－
－
－
82

－
－
－
－
－

－

(Millions of yen)
Loss on sales
－

187
－
－
0
187

－
－
－
－
－

Gain on sales

41,394－－－
41,394

Proceeds from sales－
121,780－－
191
121,972

43

Gain on sales

ファイル名:(Derivative Transactions)
1. Derivatives not subject to hedge accounting(1) Derivatives related to foreign currency
As of March 31, 2012
Type of derivatives

Contract
amounts

Due after one
year

Fair value

Over-the-counter
Currency swap
31,996882－transactionstransactions(*) Fair value is calculated based on the price obtained from the counterparty financial institutions.

(Millions of yen)
Valuation gain
(loss)
882

As of March 31, 2013
None

2. Derivatives subject to hedge accounting(1) Derivatives related to foreign currency
As of March 31, 2012
Hedge accounting
method(Millions of yen)

Principal items
Contract
Due after one
Type of derivatives
hedgedamountsyear
Foreign exchange
Forecasted
Deferred hedge
forwards
transactions
108,577－
in foreign
accounting
Buy
USD
currencies(*) Fair value is calculated based on the price obtained from the counterparty financial institutions.

As of March 31, 2013
Hedge accounting
methodFair value

6,455(Millions of yen)

Principal items
Contract
Due after one
Type of derivatives
hedgedamountsyear
Foreign exchange
Forecasted
Deferred hedge
forwards
transactions
157,613－
in foreign
accounting
Buy
USD
currencies(*) Fair value is calculated based on the price obtained from the counterparty financial institutions.

Fair value

31,329(2) Derivatives related to interest rate
As of March 31, 2012
Hedge accounting
method(Millions of yen)Type of derivatives

Principal
items hedged

Contract
amounts

Due after one
year

Fair value

Interest rate swaps
Long-term(*)
payment fixed,
6,240
4,820
debt
receipt fluctuated(*) Fair value of derivatives to which special treatment of interest rate swaps is applied is included in the fair value of
long-term debt since the interest swap is processed together with long-term debt subject to hedging.

Special treatment ofinterest rate swaps

As of March 31, 2013
Hedge accounting
method(Millions of yen)Type of derivatives

Principal
items hedged

Contract
amounts

Due after one
year

Fair value

Interest rate swaps
Long-term
4,820
4,760
(*)
payment fixed,
debt
receipt fluctuated(*) Fair value of derivatives to which special treatment of interest rate swaps is applied is included in the fair value of
long-term debt since the interest swap is processed together with long-term debt subject to hedging.

Special treatment ofinterest rate swaps

44

更新日時:2013/05/09 16:53:00 印刷日時:13/05/09 16:53

ファイル名:④-6H25.3ｆ連結一株後発開示の省略【済】.doc(Per Share Information)

For the year ended
March 31, 2012

For the year ended
March 31, 2013

Net assets excluding minority interests per share¥596,908.99¥679,639.63

Net income per share¥53,137.93¥50,114.22

Notes:

1. Diluted net income per share is not presented because there are no dilutive potential of shares of common stock.
2. Net income per share is calculated based on the following:
For the year ended
March 31, 2012

Net income (Millions of yen)

194,000

For the year ended
March 31, 2013
182,961

Amount not attributable to common shareholders－－(Millions of yen)
Net income attributable to common shareholders
194,000
182,961(Millions of yen)
Average number of shares (shares)
3,650,894
3,650,894
Common stock
3,650,893
3,650,893
Common stock equivalent share; Class A stock share
1
1
Note:
Since a shareholder of the class A stock is entitled to the same rights as that for shareholders of common stock regarding
dividends and the distribution of residual property, the class A stock share is classified as common stock equivalentshare.

45

更新日時:2013/05/09 16:53:00 印刷日時:13/05/09 16:53

ファイル名:④-6H25.3ｆ連結一株後発開示の省略【済】.doc(Significant Subsequent Events)
Stock Split and Adoption of Share Unit System
The Board of Directors of the Company resolved to implement a stock split of its common stock and to adopt a share unit
system for its common stock and class A stock at its meeting held on May 10, 2013. These matters are subject to approval at
the 7th ordinary general meeting of shareholders to be held on June 25, 2013, and as necessary at class shareholders
meetings.
1. Purpose for the stock split and the adoption of the share unit system
For the purpose of enlarging the Company’s investor base by further improving the environment for a broader investor,
including individual investors, to invest in our shares through reducing the investment unit of the Company’s shares, theCompany has decided to conduct a stock split at a ratio of 1:400 of common stock, considering the ordinary price range forinvestment units of companies listed on the 1st Section of the Tokyo Stock Exchange market.
Further, in line with the content provided in the Japanese Stock Exchanges’ “Action Plan for Consolidating Trading Units”,
the Company will adopt a share unit system under which the share unit number of common stock will be 100 shares. As aresult of these initiatives, the investment unit amount of the Company’s shares will be one quarter (1/4) of what it was
before the stock split and adoption of the share unit system.
For class A stock (which is not listed), no stock split will be implemented and the share unit number will be one share.
2. Stock split(1) Method of the stock split
Shares of common stock held by shareholders listed or recorded in the final registry of shareholders as of the record dateof Monday, September 30, 2013 will be split at a ratio of one share to 400 shares of common stock.
(2) Increase in number of shares due to the stock split
Total number of shares issued before the stock split:

Common stock
Class A stockTotal

3,655,809
1
3,655,810

Number of shares to be increased due to the stock split:

Common stock

1,458,667,791

Total number of shares issued after the stock split:

Common stock

1,462,323,600

Class A stock

Total number of shares available for issuance after the stock split:

1

Total

1,462,323,601

Common stock

3,600,000,000

Class A stockTotal

13,600,000,001(3) Schedule of the stock split(a) Public notice of the record date: Friday, September 13, 2013(b) Record date: Monday, September 30, 2013(c) Effective date: Tuesday, October 1, 2013
3. Adoption of the share unit system(1) Size of the newly established share unit
A share unit system will be adopted as of the effective date in “2. Stock split,” with the share unit number for common
stock being 100 shares and the share unit number for class A stock being one share.

46

更新日時:2013/05/09 16:53:00 印刷日時:13/05/09 16:53

ファイル名:④-6H25.3ｆ連結一株後発開示の省略【済】.doc(2) Schedule
Effective date: Tuesday, October 1, 2013
Note: The trading unit of shares of the Company on the Tokyo Stock Exchange market will be changed from one share to
100 shares as of Thursday, September 26, 2013.
4. Others
Per share information for the years ended March 31, 2012 and 2013, based on the assumption that the stock split was
conducted on April 1, 2011, is as follows:
Net assets excluding minority interests per share:
As of March 31, 2012

¥1,492.27

As of March 31, 2013

¥1,699.10

Net income per share:
For the year ended March 31, 2012¥132.84

For the year ended March 31, 2013¥125.29

Note: Diluted net income per share is not presented because there are no dilutive potential of shares of common stock.

(Omissions of Disclosure)With respect to information for unapplied accounting standards, leases, related party transactions, tax accounting, asset
retirement obligations and retirement benefits plan respective disclosure has been omitted because it does not havesignificant impact on the consolidated financial statements.

47

更新日時:2013/05/09 16:53:00 印刷日時:13/05/09 16:53

ファイル名:⑤-1個別英文BS_H24年度.doc

5. Non-Consolidated Financial Statements(1) Non-Consolidated Balance Sheets(Millions of yen)Accounts

As of March 31, 2012

As of March 31, 2013

Cash and deposits

244,066

430,958

Accounts receivable-trade28,58628,442Marketable securities

364,134

272,080

2,491

2,516

58

55

Raw materials and supplies

2,220

1,628

Advance payments-trade

12

15

Prepaid expenses
Short-term loans receivable from subsidiaries andaffiliates
Other

582

738

22,02645,213

21,73045,055

Allowance for doubtful accounts(300)(2,315)685,608

824,389

Buildings, net

9,801

9,556

Structures, net

92,12786,765Wells, net

3,193

1,786

Machinery and equipment, net

27,55625,487

Vehicles, net

41

39

Tools, furniture and fixtures, net

844

1,605

16,394

16,769100

152

Construction in progress

77,38693,545

Total tangible fixed assets

227,447

235,708

97,341

90,38800Software

2,217

2,020

Other

1,783

1,603

101,342

94,012(Assets)
Current assets

Finished goods
Work in process and partly-finished construction

Total current assets
Fixed assets
Tangible fixed assets

Land
Leased assets, net

Intangible assets
Goodwill
Mining right

Total intangible assets48

更新日時:2013/05/09 16:53:00 印刷日時:13/05/09 16:53

ファイル名:⑤-1個別英文BS_H24年度.doc(Millions of yen)Accounts

As of March 31, 2012

As of March 31, 2013

Investment securities

771,790

527,778

Investments in stock of subsidiaries and affiliates

685,012

1,188,459

Investments in capital

00Investments in capital of subsidiaries and affiliates

00Long-term loans receivable

62Long-term loans receivable from employees
Long-term loans receivable from subsidiaries andaffiliates

24

22

72,84085,87212

550

Long-term time deposits

55,000287,273

Recoverable accounts under production sharing

114,040

110,072

Other

19,484

18,596

Allowance for doubtful accounts
Allowance for recoverable accounts under
production sharing

(104)

(97)

(295)

(673)

Allowance for investments in exploration(191,687)(194,348)

Total investments and other assets

1,526,126

2,023,506

1,854,915

2,353,227

2,540,523

3,177,617

Accounts payable-trade

4,594

3,524

Current portion of long-term debt

4,218

3,616

35

43

Accounts payable-other53,44932,136

Accrued expenses

2,650

2,863

Income taxes payable

21,374

18,428Deferred tax liabilities

124

597

Advances received

1,855

86

Deposits payable

394

367

409,454797,757

Accrued bonuses to officers

110

110

Asset retirement obligations

564

845

6,456

31,345505,283

891,725

Investments and other assets

Long-term prepaid expenses

Total fixed assets
Total assets(Liabilities)
Current liabilities

Lease obligations

Deposits received from subsidiaries and affiliates

Other
Total current liabilities49

更新日時:2013/05/09 16:53:00 印刷日時:13/05/09 16:53

ファイル名:⑤-1個別英文BS_H24年度.doc(Millions of yen)Accounts

As of March 31, 2012

As of March 31, 2013

60,664

153,671

63

114

Deferred tax liabilities

4,212

5,973

Accrued retirement benefits to employees

5,871

8,156

Long-term liabilities
Long-term debt
Lease obligations

―

3,705

Provision for loss on business of subsidiaries
and affiliates

11,982

14,509Asset retirement obligations

2,662

2,219

992

1,414

86,449189,764

591,733

1,081,489

290,809290,809

Legal capital surplus

1,023,802

1,023,802

Total capital surplus

1,023,802

1,023,802―

647

Reserve for overseas investment loss

40,86938,603

Mine prospecting reserve

9,291

8,581

582,067

704,104

632,227

751,936(5,248)(5,248)

1,941,592

2,061,300

Unrealized holding gain on securities

7,198

34,827

Total valuation, translation adjustments and others

7,198

34,827

1,948,790

2,096,127

2,540,523

3,177,617

Provision for loss on business

Other
Total long-term liabilities
Total liabilities(Net assets)
Shareholders’ equity
Common stock
Capital surplus

Retained earnings
Other retained earnings
Reserve for special depreciation

Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation, translation adjustments and others

Total net assets
Total liabilities and net assets50

更新日時:2013/05/09 16:53:00 印刷日時:13/05/09 16:53

ファイル名:⑤-2個別英文PL_H24年度.doc(2) Non-Consolidated Statements of Income(Millions of yen)
For the year ended
March 31, 2012

Accounts

For the year ended
March 31, 2013

Net sales

452,228

399,496

Cost of sales

177,065

173,695

Gross profit

275,162

225,800

30

175

Selling, general and administrative expenses

41,47944,347

Operating income

233,652

181,278

Interest income

1,892

4,557

Interest income on securities

2,689

2,099

Dividend income

57,343

69,276―

20,849

Other

4,162

5,192

Total other income

66,087

101,975

989

2,000

12,713

23,402

Provision for loss on business

―

3,705

Provision for loss on business of
subsidiaries and affiliates

7,680

2,526

Foreign exchange loss

10,009

―

Other

2,214

4,249

Total other expenses

33,60835,885

Ordinary income

266,131247,369

Income before income taxes

266,131247,369

Income taxes-current

119,622

99,192

Income taxes-deferred

701

1,087

Total income taxes

120,323

100,279

Net income

145,807

147,090

Exploration expenses

Other income

Foreign exchange gain

Other expenses
Interest expense
Provision of allowance for investment loss
in exploration

51

更新日時:2013/05/09 16:53:00 印刷日時:13/05/09 16:53

ファイル名:⑤-3個別英文SS_H24年度.doc(3) Non-Consolidated Statements of Changes in Net Assets(Millions of yen)
For the year ended
March 31, 2012

Accounts

For the year ended
March 31, 2013

Shareholders’ equity
Common stock
Balance at the beginning of the period

290,809290,809290,809290,809

Balance at the beginning of the period

1,023,802

1,023,802

Balance at the end of the period

1,023,802

1,023,802

Balance at the beginning of the period

1,023,802

1,023,802

Balance at the end of the period

1,023,802

1,023,802――

Provision of reserve for special depreciation―

647

Total changes during the period―

647

Balance at the end of the period―

647

28,05440,86912,815―

Balance at the end of the period
Capital surplus
Legal capital surplus

Total capital surplus

Retained earnings
Other retained earnings
Reserve for special depreciation
Balance at the beginning of the period
Changes during the period

Reserve for overseas investment loss
Balance at the beginning of the period
Changes during the period
Provision of reserve for overseas investment loss―

(2,266)

12,815(2,266)40,86938,603

7,308

9,291

Provision of mine prospecting reserve

8,038

8,560

Reversal of mine prospecting reserve(6,055)(9,269)Total changes during the period

1,982

(709)

9,291

8,581

472,962

582,067―(647)

Reversal of reserve for overseas investment loss
Total changes during the period
Balance at the end of the period
Mine prospecting reserve
Balance at the beginning of the period
Changes during the period

Balance at the end of the period
Retained earnings brought forward
Balance at the beginning of the period
Changes during the period
Provision of reserve for special depreciation
Provision of reserve for overseas investment loss

(12,815)―

Reversal of reserve for overseas investment loss

―

2,266

Provision of mine prospecting reserve(8,038)(8,560)

Reversal of mine prospecting reserve

6,055

9,269

(21,905)(27,381)Net income

145,807

147,090

Total changes during the period

109,104

122,037

582,067

704,104

Cash dividends paid

Balance at the end of the period52

更新日時:2013/05/09 16:53:00 印刷日時:13/05/09 16:53

ファイル名:⑤-3個別英文SS_H24年度.doc(Millions of yen)
For the year ended
March 31, 2012

Accounts

For the year ended
March 31, 2013

Total retained earnings
Balance at the beginning of the period

508,325

632,227――

Changes during the period
Provision of reserve for special depreciation
Provision of reserve for overseas investment loss――

Reversal of reserve for overseas investment loss――

Provision of mine prospecting reserve――

Reversal of mine prospecting reserve――

Cash dividends paid

(21,905)(27,381)Net income

145,807

147,090

Total changes during the period

123,902

119,708

632,227

751,936

Balance at the end of the period
Treasury stock
Balance at the beginning of the period(5,248)(5,248)

Balance at the end of the period(5,248)(5,248)1,817,689

1,941,592

Cash dividends paid

(21,905)(27,381)Net income

145,807

147,090

Total changes during the period

123,902

119,708

1,941,592

2,061,300

Balance at the beginning of the period

1,973

7,198

Changes during the period
Other changes in items other than those inshareholders’ equity (net)

5,224

27,6285,224

27,628

7,198

34,827

Balance at the beginning of the period

1,973

7,198

Changes during the period
Other changes in items other than those inshareholders’ equity (net)

5,224

27,6285,224

27,628

7,198

34,827

1,819,663

1,948,790

Cash dividends paid

(21,905)(27,381)Net income
Other changes in items other than those inshareholders’ equity (net)145,807

147,090

5,224

27,628

Total changes during the period

129,127

147,337

1,948,790

2,096,127

Total shareholders’ equity
Balance at the beginning of the period
Changes during the period

Balance at the end of the period
Valuation, translation adjustments and others
Unrealized holding gain on securities

Total changes during the period
Balance at the end of the period
Total valuation and translation adjustments

Total changes during the period
Balance at the end of the period
Total net assets
Balance at the beginning of the period
Changes during the period

Balance at the end of the period53

2ファイル名:(4) Notes to Non-Consolidated Financial Statements(Conditions or events that indicate there could be substantial doubt about the Company’s ability to continue as a going
concern)None

6. Other(1) Production, Orders Received and Sales Performance1) Actual production
The following table shows actual production by segment:
Segment

Category

For the year ended March 31, 2012 For the year ended March 31, 2013

Crude oil
Natural gas
Subtotal
Japan
Petroleum products
IodineElectric power
generation
Crude oil
Asia & Oceania

Natural gas
Subtotal

Eurasia(Europe & NIS)

Crude oil

Middle East & Africa

Crude oil
Crude oil

AmericasNatural gas
Subtotal
Crude oil
Natural gas

Total

Subtotal
Petroleum products
IodineElectric power
generation

Notes:

1.4 MMbbls(3.8 Mbbls per day)46.7 Bcf(127.6 MMcf per day)10.2 MMboe(27.7 Mboe per day)244.3 Mkl
(1,536.9 Mbbls)

1.4 MMbbls(3.9 Mbbls per day)48.8 Bcf(133.7 MMcf per day)10.6 MMboe(29.0 Mboe per day)
157.5 Mkl
(991.0 Mbbls)

443.4 tons

444.8 tons

202.8 millions kWh

185.7 millions kWh

23.0 MMbbls(62.8 Mbbls per day)
265.9 Bcf
(726.4 MMcf per day)
73.5 MMboe(200.7 Mboe per day)
9.2 MMbbls(25.0 Mbbls per day)
56.6 MMbbls(154.5 Mbbls per day)
1.8 MMbbls(5.0 Mbbls per day)27.0 Bcf(73.7 MMcf per day)
6.7 MMboe(18.2 Mboe per day)
91.9 MMbbls(251.2 Mbbls per day)
339.5 Bcf
(927.7 MMcf per day)
156.0 MMboe(426.2 Mboe per day)244.3 Mkl
(1,536.9 Mbbls)
443.4 tons

21.3 MMbbls(58.3 Mbbls per day)
233.1 Bcf
(638.7 MMcf per day)
65.3 MMboe(178.9 Mboe per day)
9.2 MMbbls(25.1 Mbbls per day)57.7 MMbbls(158.2 Mbbls per day)
0.2 MMbbls(0.5 Mbbls per day)33.2 Bcf(90.9 MMcf per day)
6.1 MMboe(16.6 Mboe per day)
89.8 MMbbls(245.9 Mbbls per day)315.1 Bcf
(863.4 MMcf per day)
148.8 MMboe(407.8 Mboe per day)
157.5 Mkl
(991.0 Mbbls)
444.8 tons

202.8 millions kWh

185.7 millions kWh

1. The volume of LPG produced overseas is included in ‘Crude oil.’ On the other hand, the volume of LPG produced in thedomestic refinery is included in ‘Petroleum Products.’
2. A portion of crude oil production volume is consumed as material for petroleum products.
3. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
4. The production by the Company’s affiliates accounted for by the equity method is included in the figures above.
Also the production volume is a result for the years ended March 31 regardless of a closing date of fiscal periods of its subsidiaries
or affiliates.
5. The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX Groupcorresponds to the net economic take of the group.
Figures calculated by multiplying the gross production volume by the Company’s interest share are 128.2 MMbbls (350.3 Mbbls perday) of crude oil, 495.0 Bcf (1,352.3 MMcf per day) of natural gas, and in total 221.8 MMboe (606.0 Mboe per day) for the year
ended March 31, 2012, and 120.3 MMbbls (329.7 Mbbls per day) of crude oil, 431.2 Bcf (1,181.2 MMcf per day) of natural gas,
and in total 201.5 MMboe (551.9 Mboe per day) for the year ended March 31, 2013.
6. Boe means barrels of oil equivalent.
7. The volume of petroleum products is converted to bbl in parenthesis. Applied coefficient is 6.29 bbls per kl.
8. Iodine is refined by other company on consignment.
9. Figures are rounded to the first decimal place.

54

2ファイル名:

2) Orders received
Disclosure on this information is omitted because the amount of orders received is accounted for a minor portion of total sales.
3) Actual sales
The following table shows sales by segment:(Millions of yen)Segment

CategoryJapan

Crude oil
Natural gas(excluding LPG)
LPG

For the year ended March 31, 2012
Sales volume

414 Mbbls

4,230

65,602 MMcf

78,33465,429 MMcf

82,4392,559

148 Mbbls

223 Mbbls

31,443
113,662
19,341 Mbbls

177,051

264,617 MMcf

321,276

223,451 MMcf

282,620

3,213 Mbbls

21,771

3,659 Mbbls

25,602

Notes: 1.
2.

3.
4.

483,187

485,275

9,107 Mbbls

84,325

9,177 Mbbls

85,540

Crude oil

56,084 Mbbls

500,032

57,201 Mbbls

520,835

53 Mbbls

400

55 Mbbls

476

27,382 MMcf

5,124

29,912 MMcf

5,468

80,738 Mbbls

726,222

86,189 Mbbls

788,135

357,601 MMcf

404,735

318,792 MMcf

370,528

3,436 Mbbls

24,3303,807 Mbbls

27,237

Crude oil
Natural gas(excluding LPG)
LPG

Total

118,936

140,139

Crude oil

Crude oil
Natural gas(excluding LPG)
Subtotal

Americas

1,634
30,631

15,355 Mbbls

Subtotal
Eurasia(Europe & NIS)
Middle East & Africa

Net sales

1,325

Subtotal

Asia & Oceania

Sales volume

138 Mbbls

Other
Crude oil
Natural gas(excluding LPG)
LPG

Net sales

For the year ended March 31, 2013

5,524

5,944

Other

31,44330,631Total

1,186,731

1,216,533

The above amounts do not include the related consumption tax.
The Company’s subsidiaries of which closing date for fiscal year is December 31 are principally consolidated their operating results
for the year ended December 31 except those subsidiaries prepared their financial statements for consolidation purpose as of theconsolidation closing date. However, the significant effects of the difference in fiscal periods were properly adjusted inconsolidation.
Sales volumes are rounded to the nearest whole number.
Sales for a major customer and sales as a percentage of total net sales are as follows. Sales amount of PERTAMINA
consists mostly of natural gas, and they are sold to Japanese, Korean, and Taiwanese customers in the form of LNG.

Customer

For the year ended
March 31, 2012
AmountRatio(Millions of yen)(%)

For the year ended
March 31, 2013
AmountRatio(Millions of yen)(%)

PERTAMINA

245,94220.7

206,282

17.0

Idemitsu Kosan
Co.,Ltd.

103,630

8.7

132,908

10.9

55