Consolidated Financial Results for the Fiscal Year Ended March 31, 2015
<under Japanese GAAP>May 12, 2015
Note: The following report is a summary of the Japanese-language original.

Company name: Japan Petroleum Exploration Co., Ltd.
Listing:
Tokyo Stock Exchange, First Section
Securities code: 1662
URL:
http://www.japex.co.jp/
President:
Osamu Watanabe
Inquiries:
Samdeck Nakamoto, General Manager, Media and Investor Relations Department
TEL: +81-3-6268-7110 (from overseas)
Scheduled date of ordinary general shareholders’ meeting:June 24, 2015
Scheduled date to commence dividend payments:
June 25, 2015
Scheduled date to file Securities Report:
June 25, 2015
Presentation of supplementary material on financial results:
Yes
Holding of financial results presentation meeting (for institutional investors and analysts): Yes(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.
(1)Consolidated financial results for the fiscal year ended March 31, 2015
(April 1, 2014 – March 31, 2015)
Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Operating income

Millions of yen

March 31, 2015

304,91110.2

32,14630.5

54,83924.929,567

1.9

March 31, 2014

276,588

19.7

24,63477.1

43,88956.3

29,015–FY2015: 45,151 million yen (-1.4 %)% Millions of yen

Net income

Fiscal year ended

Note: Comprehensive income:% Millions of yen

Ordinary income% Millions of yen%

FY2014: 45,798 million yen (- %)Ratio ofRatio of
Return on equity ordinary income to operating income tototal assets
sales

Net income per
share

Diluted net
income per share

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2015

517.35

–

6.7

7.8

10.5

March 31, 2014507.68

–

7.2

7.4

8.9

Reference: Equity in earnings (losses) of affiliates: FY2015: 11,996 million yen(2)

FY2014: 12,140 million yen

Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2015

736,862

540,647

62.5

8,055.59

As of March 31, 2014

663,038

496,91563.7

7,389.62

Reference: Equity

As of March 31, 2015: 460,398 million yen

As of March 31, 2014: 422,336 million yen

-1-

(3)

Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2015

78,666(63,031)

18,475

142,657

March 31, 2014

45,226(131,600)

71,680102,830

2.

Cash dividends
Annual dividends

Ratio of
Dividend
dividends topayout ratio
net assets(consolidated) (consolidated)First
quarter

Secondquarter

Third
quarter

Fiscalyear-end

AnnualTotalannual cash
dividends

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

Fiscal year ended
March 31, 2014

–

25.00

–

25.00

50.00

2,857

9.8

0.7

Fiscal year ended
March 31, 2015

–

25.00

–

25.00

50.00

2,857

9.7

0.6

Fiscal year ending
March 31, 2016
(Forecast)

–

25.00

–

25.00

50.00

3.

24.4

Consolidated financial forecasts for the fiscal year ending March 31, 2016 (April 1, 2015 – March 31, 2016)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Profit attributable
Ordinary income to owners of parent

Net income pershare

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

For the six months
ending September 30,
2015

144,019

(1.9)

3,899

(74.2)

6,523(73.6)

5,848(69.0)

102.32

Fiscal year ending
March 31, 2016

271,118(11.1)

9,120(71.6)

14,012(74.4)

11,705(60.4)

204.80

*
(1)

Notes
Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in the change in scope of consolidation): None

(2)

Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None(3)

Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2015
57,154,776 shares
As of March 31, 2014
57,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2015
2,139 shares
As of March 31, 2014
2,139 sharesc. Average number of shares during the period
Fiscal year ended March 31, 2015
57,152,637 sharesFiscal year ended March 31, 2014
57,152,637 shares-2-Reference: Summary of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2015
(April 1, 2014 – March 31, 2015)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Operating income% Millions of yen

Ordinary income

Fiscal year ended

Millions of yen

March 31, 2015

227,251

9.7

19,97320.8

26,560(19.1)

20,088(12.3)March 31, 2014

207,086

18.6

16,53244.9

32,84134.8

22,909–Net income per share% Millions of yen

Net income%

Diluted net
income per share

Fiscal year ended

Yen

March 31, 2015

351.49–March 31, 2014

400.85–(2)% Millions of yen

Yen

Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2015

488,789

393,43780.5

6,883.97

As of March 31, 2014

486,800

373,58776.7

6,536.67

Reference: Equity

As of March 31, 2015: 393,437 million yen

As of March 31, 2014: 373,587 million yen* Indication regarding execution of audit procedures
At the time of disclosure of this financial results report, the audit procedures for the consolidated financial
statements in accordance with the Financial Instruments and Exchange Act are in progress.
* Proper use of financial forecasts, and other special matters
The forward-looking statements, including the financial forecasts shown in this document are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. As such,they do not constitute guarantees by the Company of future performance. Actual performance and other results
may differ materially from these forecasts due to various factors.
For the suppositions that form the assumptions for financial forecasts and cautions concerning the use thereof,
please refer to the section of “(1) Analysis of operating results” of “1. Analysis of operating results andfinancial position” on pages 4-6 of the attached material to the financial results report.
(Method of accessing supplementary material on financial results)
On May 12, 2015 (Tuesday), JAPEX plans to post supplementary material on its website.
In addition, JAPEX plans to hold a presentation meeting for institutional investors and analysts on May 13,2015 (Wednesday). JAPEX plans to post the material distributed at this presentation meeting on its website
promptly after the meeting is held.

-3-

(Attached Material)
1. Analysis of operating results and financial position(1) Analysis of operating results
In the fiscal year ended March 31, 2015, the Japanese economy continued with a moderate tone of recovery
with overall trends of improvement in corporate earnings and the employment situation continuing from theprevious fiscal year, despite weak trends in personal consumption due to a fall in demand following the rushahead of the consumption tax hike at the beginning of the fiscal year.
The Japan Crude Cocktail (JCC) price moved close to $110 per barrel over the summer but fell sharply in theautumn due to such effects as the increase in supply from shale oil production increases in the United States,
and at the end of the fiscal year, it was languishing just above and below the $50 mark.
In the currency exchange market, the trend of yen depreciation of the previous fiscal year continued throughthe fiscal year under review. Against the US dollar, the yen began the fiscal year at around the low-end of the¥100 range, and around the end of the fiscal year, its movement was in the high-end of the ¥110 range. As aresult, the JAPEX Group’s crude oil prices for the fiscal year fell compared with the previous fiscal year, due
to the effect of weak JCC prices over the autumn and winter.
On the other hand, although there has been persistently high demand for natural gas, following the Great East
Japan Earthquake, there has also been ongoing fierce competition in procurement of liquefied natural gas(LNG) and sales of gas in vaporized form, among others, and in addition, industry trends in relation to the
supply infrastructure continued to move forward. As a result the JAPEX Group faced an uncertain market
environment.
Given this environment, the JAPEX Group endeavored to secure production and transportation, and focusedon efficient E&P in Japan and overseas toward achieving a stable, long-term supply of energy essential fordaily life.
During the fiscal year under review, net sales was at ¥304,911 million, an increase of ¥28,322 million(+10.2%) year on year, and gross profit was at ¥70,262 million, an increase of ¥4,134 million (+6.3%) year
on year. The main factors behind the year-on-year increases in net sales and gross profit were increases insales volumes of crude oil overseas and natural gas overseas.
Exploration expenses decreased by ¥5,310 million (-54.2%) year on year to ¥4,489 million. This was mainly
the result of a considerable decrease in domestic exploration expenses outweighing overseas exploration
expenditures. Selling, general and administrative expenses increased by ¥1,932 million (+6.1%) year on yearto ¥33,625 million. As a result, operating income increased by ¥7,512 million (+30.5%) year on year to¥32,146 million.
Ordinary income increased ¥10,949 million (+24.9%) year on year to ¥54,839 million, mainly due to anincrease in foreign exchange gains.
Income before income taxes and minority interests was ¥50,373 million, an increase of ¥14,789 million(+41.6%) year on year. This mainly reflected a decrease in extraordinary losses of ¥3,840 million
accompanying a decrease in impairment loss.
Net income was ¥29,567 million, an increase of ¥552 million (+1.9%) year on year. This was the result of anincrease in deferred income taxes mainly due to the decline of deferred tax assets and the increase of deferred
tax liabilities.

-4-Below is a breakdown of sales.
(i) E&P
Net sales from E&P (including liquefied natural gas (LNG) and bitumen) came to ¥245,631 million, an
increase of ¥28,474 million (+13.1%) year on year, mainly due to increases in sales volume of crude oiloverseas and natural gas overseas.
(ii) Contract Services
Net sales from contract services (involved in drilling and geological surveys) came to ¥10,487 million, an
increase of ¥1,747 million (+20.0%) year on year.
(iii) Other Businesses
Net sales from other businesses, such as the sale of oil products, including liquefied petroleum gas (LPG),
fuel oil and the like, the transportation of natural gas and others as well as other subcontracted tasks, cameto ¥48,792 million, a decrease of ¥1,899 million (-3.7%) year on year.
Below is a summary of performance by segment.
(1) Japan
Net sales from the Japan segment is mainly composed of E&P (including LNG), contract services, and oil
products and the like. In the fiscal year under review, net sales was at ¥280,719 million, an increase of¥19,171 million (+7.3%) year on year, mainly due to the increase of crude oil products purchased from theGarraf oilfield in Iraq. Segment profit came to ¥35,205 million, an increase of ¥3,597 (+11.4%) year on year.
This mainly reflected a decline in exploration expenses due to a decline in well drilling work volume.
(2) North America
Net sales from the North America segment is mainly composed of E&P (including bitumen). Net sales cameto ¥22,729 million, an increase of ¥8,061 million (+55.0%) year on year due mainly to an increase in sales
volume of E & P of a project for the development and production of shale gas in British Columbia, Canada.
As a result, segment profit came to ¥3,223 million, an increase ¥1,325 million (+69.9%) year on year.
(3) Middle East
Net sales from the Middle East segment is mainly composed of crude oil. Net sales came to ¥39,514 million,
an increase of ¥23,270 million (+143.3%) year on year, due mainly to an increase in sales of crude oil at the
Garraf oilfield in Iraq. Segment profit came to ¥5,241 million, an increase of ¥2,978 million (+131.6%) year
on year.
Outlook for the fiscal year ending March 31, 2016
The latest financial forecasts are based on a JCC price of $55 per barrel for the first quarter, $60 per barrel forthe second and third quarters, and $65 per barrel for the fourth quarter, and an exchange rate of ¥115/$ for thewhole fiscal year. Actual non-consolidated results for the fiscal year under review came to $96.48 per barreland ¥106.23/$.
Net sales for the fiscal year ending March 31, 2016 is expected to decrease by ¥33,794 million (-11.1%) fromthe fiscal year under review to ¥271,118 million. This is because we expect a decline in the sales volumes ofdomestically produced crude oil and LNG.
Operating income is expected to decrease ¥23,027 million (-71.6%) from the fiscal year under review to¥9,120 million as we expect an increase in exploration expenses to outweigh declines in sales costs andselling, general and administrative expenses.
Ordinary income is expected to decrease ¥40,828 million (-74.4%) from the fiscal year under review to¥14,012 million, mainly due to an expected decline in share of profit of entities accounted for using equity
method and a decline in foreign exchange gains.
Profit attributable to owners of parent is expected to decrease ¥17,863 million (-60.4%) from the fiscal year
under review to ¥11,705 million, despite the absence of the impairment loss posted under extraordinary losses
in the fiscal year under review and a decline in income taxes.

-5-(2) Analysis of financial position
a. Balance sheet
Total assets at the end of this fiscal year stood at ¥736,862 million, an increase of ¥73,824 million from theprevious fiscal year-end. The main factor behind this increase was an increase of ¥89,165 million in property,
plant and equipment due to an increase in construction in progress.
Total liabilities increased by ¥30,091 million from the previous fiscal year-end to ¥196,214 million. The main
factor behind this increase was an increase of ¥29,413 million in current liabilities due to increases in shortterm loans payable and other current liabilities.
Total net assets increased by ¥43,732 million from the previous fiscal year-end to ¥540,647 million. The main
factor behind this increase was increases in retained earnings, foreign currency translation adjustment andminority interests.

b. Cash flows
As of March 31, 2015, cash and cash equivalents (hereinafter, “net cash”) totaled ¥142,657 million, up¥39,827 million, compared to the end of the previous fiscal year. Below is a summary of cash flows for eachactivity.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥78,666 million. The main factors were ¥50,373
million in income before income taxes and minority interests, ¥16,811 million in depreciation and ¥33,665
million in recovery of recoverable accounts in spite of ¥11,996 million in share of profit of entities accounted
for using equity method and a decrease in notes and accounts payable - trade of ¥9,853 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥63,031 million. Net cash was mainly used in purchase ofproperty, plant and equipment of ¥86,756 million, while net cash was mainly provided by proceeds fromwithdrawal of time deposits of ¥28,582 million.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥18,475 million. Net cash was mainly provided by an increasein short-term loans payable of ¥223,797 million, while net cash was mainly used in a decrease of short-termloans payable of ¥202,648 million.

-6-

Reference: Trend of cash flow indicators
Fiscal years ended March 31

2011

2012

2013

2014

2015

Equity ratio (%)

74.7

73.7

72.8

63.7

62.5

Equity ratio on mark-to-market basis (%)

46.1

41.3

40.6

29.6

31.6

Interest-bearing debt to cash flow ratio (years)

0.8

0.9

0.8

1.2

1.0

170.9

197.6

110.9

53.2

99.4

Interest coverage ratio (times)

Equity ratio: Equity/Total assets
Equity ratio on mark-to-market basis: Total market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/Cash flows
Interest coverage ratio: Cash flow/Interest paid
Notes:*1. The above indicators are calculated based on consolidated financial figures.
*2. Total market capitalization is calculated based on the number of shares outstanding (excluding treasury shares).
*3. Cash flow here is cash flows from operating activities.
*4. Interest-bearing debt is all debt subject to interest payments within liabilities (excluding lease obligations) shown on the
consolidated balance sheet.

(3) Fundamental policy on allocation of profits and dividends for this year and next year
JAPEX’s basic policy is to sustain stable dividends over the long term. Taking into account the medium- andlong-term outlook for the business, dividend payments are set based on respect for the return of profits toshareholders. While considering the need to secure new reserves in Japan and overseas as an energy company
that plays a role in providing stable supplies of oil and natural gas, which are indispensable for society, thepolicy also takes into account the need for retained earnings to develop, upgrade and improve supply
infrastructure.
Based on the above reasoning, an annual dividend of ¥50 per share (¥25 yen per share interim dividend and¥25 yen per share year-end dividend) is planned for the fiscal year under review. In addition, the same annual
dividend of ¥50 per share (¥25 yen per share interim dividend and ¥25 yen per share year-end dividend) isplanned for the next fiscal year.

-7-2. Business policies(1) Fundamental business policies
Since its establishment in 1955, JAPEX has pursued its mission of contributing to Japan’s energy supplies by
securing reserves and expanding production centered on the exploration, development, and sale of oil andnatural gas. Guided by this mission, JAPEX has steadily discovered oil and natural gas reserves to result inthe business base of today.
In light of its expanding role as a supplier and, consequently, related increases in its responsibility to society
with regard to a stable supply, the JAPEX Group is actively focused on constructing a new business modelthat not only relies on expanding reserves but also upgrading and expanding transportation systems fornatural gas and other initiatives. As such, the Group aims to move forward as a company with the competitive
capabilities required to respond to changes in its operating environment. The section below outlines theGroup’s business philosophy in this respect.
JAPEX is committed to contributing to local communities through a stable supply of energy
・ Explore for, develop, produce and deliver oil and natural gas in Japan and overseas.
・ Further enhance the gas supply chain, supported by our own domestic infrastructures, throughaggressive introduction of LNG business.
・ Leverage our existing technology and expertise to develop and commercialize new technology.
・ Make all stakeholder trust our first priority while striving to achieve sustainable growth and maximize
corporate value.

(2) Medium- and long-term business strategy and critical issues
The replacement and expansion of reserves, which are depleted by production and sales activities, and theformulation of a supply structure of oil and natural gas that would ensure long-term stability is of paramountimportance to JAPEX, a company whose business is centered on exploration, development and sales of theseresources. Additionally, with factors such as intensification in the competitive environment for the domestic
natural gas business and changes in social conditions marked by an increase in the importance of global
warming countermeasures, the business environment encompassing JAPEX is undergoing a rapidtransformation. JAPEX, under the policy of its previous medium-term plan, has been working on establishinga clear action plan for the attainment of important business challenges over the long term by setting thefollowing three activities as core business objectives; “Sustaining and increasing reserves through explorationand development,” “Strengthening our natural gas integrated operation system” and “Pursuing technological
R&D activities and initiatives to address global environmental challenges.” Furthermore, on May 2011,
JAPEX announced a medium-term plan that, while continuously positioning the above-mentioned three
activities as the three basic policies for the purpose of the Company’s business expansion, particularly
positions “Sustaining and increasing reserves through exploration and development” (E&P business) as thecore for future growth and focuses on shifting investment to overseas in the E&P business.
Details and subsequent progress of the JAPEX Group Medium-Term Business Plan (for fiscal years 2012 to2016) released on May 13, 2011 may be accessed with the following URLs in our Website.
http://www.japex.co.jp/english/newsrelease/pdf/JAPEX_20110513c.pdf“Notice of the Medium-Term Business Plan of the JAPEX Group” (English translation of original
Japanese text)
http://www.japex.co.jp/english/ir/pdf/library/JAPEX_Presentation_20120514_E.pdf“Presentation of Consolidated financial results for the fiscal year ended March 31, 2012” (English
translation of original Japanese text)
http://www.japex.co.jp/english/ir/pdf/library/JAPEX_PresentationMaterial_20130513_E.pdf“Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2013” (English
translation of original Japanese text)
http://www.japex.co.jp/english/ir/pdf/library/JAPEX_PresentationMaterial_20140513_E.pdf“Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2014” (English
translation of original Japanese text)
In the aforementioned Medium-Term Business Plan (hereinafter “Previous Medium-Term Plan”), a clear planfor growth was stated for E&P business, providing quantitative targets for three stages (Stage 1: Shift ofinvestment to overseas in fiscal years 2011 through 2015; Stage 2: Increase daily consolidated production
volume to 70,000 barrels of crude oil equivalent by fiscal year 2015; Stage 3: Increase consolidated reserves-8-

by fiscal year 2020 to 450 million barrels in oil equivalent). However as a result of our efforts during this time,
we expect to achieve these targets earlier than planned. Accordingly, we have decided to formulate a
Medium-Term Business Plan that targets the five years from fiscal years 2015 through 2019 aiming for theseachievements and a long-term vision for the next 10 years.
Although the outlook is unclear concerning recovery of the international crude oil price, which has sharply
fallen since the second half of last year, in the next Long-Term Vision and Medium-Term Business Plan, we
recognize that oil and natural gas will continue to be the major energy source in the world over the long-term
period and accordingly, we have oriented the direction of future efforts based on an imperative to continue tofurther develop the “three basic policies for business expansion” that were outlined in the Previous MediumTerm Plan.
(Long-term vision)“Transformation to Integrated Energy Company, around Oil and Gas E&P Business”
As a result of having shifted the business platform overseas as per the Previous Medium-Term Plan, theproduction volume is expected to be 100,000 barrels/day, and the size of reserves is expected to be 550
million barrels at the end of fiscal year 2015, which is significantly larger than Previous Medium-Term Plan,
due to such efforts as the development shift to Hangingstone Oil Sands Expansion Project (HE Project) in
Canada, and our proactive participation in the Pacific Northwest LNG (PLWL) project.
By continuing with these current projects, we expect to securely receive return on investment and contribution
to profits from the start of production operation onward. We expect these projects will be sufficient to realize
the targets of Stages 2 and 3 following the shift of the E&P business to overseas (increase production volume
and reserve volume and establish a cycle of reinvestment), and consider them to be the important step for thejump of 2025.
Concerning the domestic E&P business, while carrying out efforts to maximize value of existing oil and gas
fields and pursue the new potential in offshore projects through the basic surveys conducted by thegovernment, even if the inevitable demise of the mining industry emerges, we aim to further utilize andexpand domestic gas supply infrastructure as part of our firm commitment to the fulfillment of providing astable supply of energy to domestic customers, which is the No. 1 mission of the JAPEX Group.
Furthermore, in response to the recent substantial fall in oil prices, we have reappraised the size of volatility
for oil prices. If we take into account that overseas E&P business revenues will increase in the future, we
believe that business diversification is crucial to reduce the level of effect of oil price fluctuation on operating
results as much as possible, and thereby maximize the stability of the JAPEX Group business.

To this end, concerning the business field of the Company that has mostly been specialized in the E&P
business up until now, we will actively expand into fields related to the supply of oil and natural gas,including the power generation business (natural gas fired power generation, LNG cargo trading, baseperipheral businesses, etc.) and new business fields where special E&P technologies held by the JAPEXGroup can be applied (making profitable companies out of environment and innovative technology businessprojects, exploration projects for offshore mineral resources, etc.) and aim to expand revenues frombusinesses outside the conventional framework of the E&P business.
(Business development policy)“E&P Business”• Secure revenues at the production stage by securely executing the ongoing projects.
• Pursue potential domestically and build efficient systems for business operations• Even after fiscal year 2020, the target for the completion of development of the ongoing projects, sustain
RRR > 1 (Note).
Note: RRR: Reserve Replacement Ratio = (within a fixed term) “additional portion of reserves volume” /“production volume”“Domestic Natural Gas and Other Supply Business”• Diversify and expand the sale of procurement sources and supply formats.
• Start operations at the Soma LNG Base and realize a power generation business.
• Aim to be a supplier of 2.5 Million tons (LNG equivalent of natural gas) by 2025.
“Environment & Innovative Technology Business”-9-• Develop technology for methane hydrate.
• Promote demonstration trials of CO2 Capture and Storage (CCS), and prepare privatization requirements(systems etc.)• Promotion of geothermal power generation.
etc.
“Management objectives for CSR”
• Responding to the expectations and demands of all stakeholders, the JAPEX Group aims to grow as a trusted
global company by promoting initiatives to realize the goals of JAPEX Core CSR Issues “SHINE.”(Earnings Target)• Maximize the scale of revenue by perfectly controlling the ongoing projects.
• Keep “stable dividend” during low oil prices.
• Increase shareholder returns at the time oil prices have recovered and ongoing projects started contributing to
profits.

The JAPEX Group aims to utilize these activities to further strengthen its operating base and enhance its
competitiveness as well as bolster operating efficiency. The ultimate goal is to achieve sustainable
development and maximize shareholder value.

- 10 -

3. Basic rationale for selecting the accounting standard
The JAPEX Group currently has a policy to prepare the consolidated financial statements based on the generally
accepted accounting standards in Japan (Japanese GAAP), giving consideration to the possibility of comparing theconsolidated financial statements between terms
Concerning the adoption of International Financial Reporting Standards (IFRS), the Group intends to respond
appropriately giving due consideration to the situation in Japan and overseas.

- 11 -

4. Consolidated financial statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2014
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Wells
Accumulated depreciation
Wells, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Mineral resources
Accumulated depreciation
Mineral resources, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Allowance for overseas investment loss
Total investments and other assets
Total non-current assets
Total assets- 12 -

As of Mar. 31, 2015

81,031
37,222
41,203
4,653
128
6,285
1,127
13,831
9,772(48)
195,209

92,95625,24845,605
4,551
250
7,488
1,088
13,8107,531(38)198,492

151,904(118,794)
33,11080,675(69,058)
11,616111,305(88,411)22,89427,075(1,056)26,01912,19388,541
19,624(13,446)
6,177
200,552

164,644(122,646)
41,997103,733(72,995)
30,737
115,091(92,251)
22,83944,256(3,514)40,741
13,591132,122
22,065(14,378)
7,687
289,718

11,365
11,365

9,949
9,949

190,765
29,1006,039–
34,329(39)(4,284)
255,910
467,828
663,038

187,926
17,172
4,009
462
32,494(47)(3,317)
238,701
538,369
736,862(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors’ retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets- 13 -

As of March 31, 2014

As of March 31, 2015

23,61028,169118
31,55583,454

6,728
50,809120
55,210112,868

21,63632,509829
6,845
16,001
4,845
82,668
166,123

20,72636,657874
3,534
17,475
4,077
83,346196,214

14,288318,433(10)
332,711

14,288346,441(10)
360,719

84,856

86,174

(56)
5,166
(340)
89,62474,579496,915
663,038

3
12,980521
99,67880,249540,647
736,862(2) Consolidated statement of income and Consolidated statement of comprehensive income
Consolidated statement of income

Fiscal year ended
March 31, 2014
(April 1, 2013March 31, 2014)
276,588
210,460
66,127

Net sales
Cost of sales
Gross profit
Exploration expenses
Exploration expenses
Exploration subsidies
Total exploration expenses
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on sales of securities
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Share issuance cost
Provision for allowance for losses on overseas
investments
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income- 14 -(Millions of yen)
Fiscal year ended
March 31, 2015
(April 1, 2014March 31, 2015)
304,911
234,649
70,262

9,985
(184)
9,800
31,692
24,634

4,748
(258)
4,489
33,62532,146

2,341
2,366
693

2,042
2,431
96

12,14011,996

1,173
1,868
20,584

6,675
1,248
24,491

839
147
155

785
164
80

–

393

187
1,329
43,889373
1,799
54,839

2
40
0
42

0
40
1
42

145
7,983
219
8,347
35,584
6,825(1,258)5,566
30,017
1,002
29,015

336
4,006
165
4,507
50,3739,453
8,190
17,64432,7293,161
29,567

Consolidated statement of comprehensive income

Fiscal year ended
March 31, 2014
(April 1, 2013March 31, 2014)
30,017

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to minority
interests- 15 -(Millions of yen)
Fiscal year ended
March 31, 2015
(April 1, 2014March 31, 2015)
32,729

6,543
(288)
9,486
–

1,313
58
9,985
861

39

202

15,78145,79812,42145,15142,80739,622

2,991

5,529

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2014 (April 1, 2013 – March 31, 2014)(Millions of yen)
Shareholders’ equity
Capital stock

Retained earnings

Treasury shares

Total shareholders’equity14,288291,990(10)306,268

Balance at beginning of current
periodCumulative effects of changes
in accounting policies–

Restated balance

14,288291,990(10)306,268

Changes of items during period
Dividends of surplus(2,571)(2,571)

Net income

29,01529,015

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period–

26,443–

26,443

14,288318,433(10)

332,711

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehensive income

78,310226(2,362)–

76,173

Minority
interests

21,183Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

403,625–

78,310226(2,362)–

76,173

21,183

403,625

Changes of items during period
Dividends of surplus(2,571)

Net income

29,015

Net changes of items other thanshareholders’ equity

6,546

(283)

7,529

(340)

13,45153,39566,846

Total changes of items during
period

6,546

(283)

7,529

(340)

13,45153,39593,290

Balance at end of current period

84,856

(56)

5,166

(340)

89,62474,579496,915- 16 -

Fiscal year ended March 31, 2015 (April 1, 2014 – March 31, 2015)(Millions of yen)
Shareholders’ equity
Capital stock

Retained earnings

Treasury shares

Total shareholders’equity14,288318,433(10)

332,711

Balance at beginning of current
periodCumulative effects of changes
in accounting policies

1,297

Restated balance

14,288

1,297

319,731(10)

334,009

Changes of items during period
Dividends of surplus(2,857)(2,857)

Net income

29,56729,567

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period–

26,710–26,71014,288346,441(10)

360,719

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehensive income

84,856

(56)

5,166

(340)

89,624

Minority
interests

74,579Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

496,915
1,297

84,856

(56)

5,166

(340)

89,62474,579498,213

Changes of items during period
Dividends of surplus(2,857)

Net income

29,567

Net changes of items other thanshareholders’ equity

1,318

60

7,813

861

10,054

5,670

15,724

Total changes of items during
period

1,318

60

7,813

861

10,054

5,670

42,434

Balance at end of current period

86,174

3

12,980521

99,67880,249540,647- 17 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2015
(April 1, 2014March 31, 2015)

Fiscal year ended
March 31, 2014
(April 1, 2013March 31, 2014)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss
Loss on retirement of property, plant and equipment
Increase (decrease) in allowance for doubtful
accounts
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in allowance for overseas
investment loss
Interest and dividend income
Interest expenses
Loss (gain) on sales of short-term and long-term
investment securities
Share of (profit) loss of entities accounted for using
equity method
Recovery of recoverable accounts
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes
Other, net
Subtotal
Income taxes (paid) refund
Net cash provided by (used in) operating activities- 18 -

35,584
15,5677,983
139

50,373
16,811
4,006
336

25

(1)

–
(585)

(617)
(164)

26

44

(346)

(967)

(4,708)839(4,473)
785

(693)

(96)

(12,140)(11,996)

13,74933,665(4,766)

12,068506(1,222)364(9,853)134(3,086)
48,595(3,369)45,226420(3,125)85,994(7,327)78,666

Fiscal year ended
March 31, 2014
(April 1, 2013March 31, 2014)
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Payments for investments in capital
Payments of recoverable accounts
Payments of loans receivableCollection of loans receivable
Interest and dividend income received
Proceeds from dividends of residual property
Proceeds from capital reduction of investments
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Cash dividends paid to minority shareholders
Interest expenses paid
Repayments of lease obligations
Proceeds from share issuance to minority
shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 19 -(Millions of yen)
Fiscal year ended
March 31, 2015
(April 1, 2014March 31, 2015)(37,754)
31,372(200)
3,204(121,283)
12
(248)
248
(202)
(6,066)(2,574)28,582(100)
938(86,756)
10
(877)
–
(507)
(1,497)

1,430

1,803

(1,353)(20,553)(48)
4,768
13,702–
1,326
42(131,600)(1,063)(31,396)(26)
17,342
13,004
23
1,011
(947)
(63,031)206,318(178,149)
300(4,816)(2,571)
(377)
(850)
(556)

223,797(202,648)
5,881(5,162)(2,816)
(529)
(791)
(557)

52,383

1,303

71,68018,475

4,884

5,716

(9,809)112,639
102,830

39,827
102,830
142,657

4. Others
Status of production and sales
1. Production
Fiscal year ended March 31, 2014
(April 1, 2013 –March 31, 2014)

Fiscal year ended March 31, 2015
(April 1, 2014 –March 31, 2015)

828,870

1,990,143(424,040)(1,601,853)

1,104,533

1,302,003(170,549)(436,841)

12,235

1,000

344,757

332,757(344,757)(332,757)

Crude oil (kl)Natural gas (thousand m3)
E&P
LNG (t)Bitumen (kl)Notes: 1. The figures in parentheses represent overseas production and are included in the total.
2. Part of the natural gas production volume is used as a feedstock for LNG.
3. Bitumen is a type of extra-heavy oil extracted from oil sands.

2. SalesFiscal year ended March 31, 2014
(April 1, 2013 –March 31, 2014)
AmountVolume(Millions of yen)
Crude oil (kl)

1,559,888

108,4082,064,266

121,240

1,418,963

71,584

1,710,779

83,974

LNG (t)268,510

26,202

274,044

28,311

Bitumen (kl)342,565

10,962

332,342

12,105

3

Natural gas (thousand m )E&P

Subtotal

217,157

245,6318,740

10,487

Oil products/merchandise

42,86041,040

Others

7,830

7,751

Subtotal

50,691

48,792

Total

276,588

304,911

Contract services
Otherbusinesses

Fiscal year ended March 31, 2015
(April 1, 2014 –March 31, 2015)
AmountVolume(Millions of yen)

Notes: 1. “Oil products/merchandise” includes liquefied petroleum gas (LPG), fuel oil, gas oil and kerosene, and “Others”
includes the transportation of natural gas and oil products as well as other subcontracted tasks.
2. Monetary amounts in the table do not include consumption taxes.

- 20 -