Consolidated Financial Results for the Six Months Ended September 30, 2021
<under Japanese GAAP>
November 9, 2021

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:
https://www.japex.co.jp/
Representative: FUJITA Masahiro, Representative Director and President
Inquiries:
ASAI Masaru, General Manager, Corporate Communication Office
TEL: +81-3-6268-7110 (from overseas)
Scheduled date to commence dividend payments:
December 13, 2021
Scheduled date to file Quarterly Report:
November 10, 2021
Presentation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting (for institutional investors and analysts):
1.
(1)

Yes

(Millions of yen with fractional amounts discarded, unless otherwise noted)

Consolidated financial results for the six months ended September 30, 2021
(April 1, 2021 – September 30, 2021)
Consolidated operating results (cumulative)(Percentages indicate year-on-year changes.)
Net sales

Six months ended

Operating profit

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen%

September 30, 2021

118,507

20.8

9,540

–

19,349–(119,676)–

September 30, 2020

98,127 (39.6)(6,271)–(6,837)–(6,975)–

Note: Comprehensive income: Six months ended September 30, 2021:
Six months ended September 30, 2020:

Basic earnings per share
Six months ended(110,004) million yen(15,014) million yen

(– %)
(– %)

Diluted earnings per share

Yen

Yen

September 30, 2021

(2,096.81)–

September 30, 2020

(122.08)–(2)

Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of September 30,
2021

449,044

321,208

64.8

As of March 31, 2021

624,786

434,492

64.0

Reference: Equity

2.

As of September 30, 2021: 290,857 million yen

As of March 31, 2021: 400,171 million yen

Cash dividends

Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
Fiscal year ending
March 31, 2022
(Forecasts)

First quarter
Yen

Second quarter
Yen

Annual dividends
Third quarter
Yen

Fiscal year-end
Yen

–

25.00

–

25.00

50.00

–

25.00
–

25.00

50.00

Note: Revisions to the latest forecasts of cash dividends: None

-1-

AnnualYen

3.

Consolidated financial forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 – March 31, 2022)(Percentages indicate year-on-year changes.)

Net sales

Fiscal year ending
March 31, 2022

Operating profit

Ordinary profit

Profit attributable Basic earnings per
to owners of parent
shareMillionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

235,098(2.1)

16,669297.6

28,390183.9(69,847)–(1,230.53)

Note: Revisions to the consolidated financial forecasts most recently announced: Yes

*
(1)

Notes
Changes in significant subsidiaries during the six months under review (changes in specified subsidiaries
resulting in the change in scope of consolidation): Yes
New inclusion: –Exclusion: one company (Japan Canada Oil Sands Limited)

Note: For details, please refer to “(3) Notes to consolidated financial statements (Changes in significant subsidiaries during the six
months under review)” of “2. Consolidated financial statements and significant notes thereto” on page 9 of the attached material.

(2)

Application of specific accounting for preparing quarterly consolidated financial statements: Yes(3)

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

Note: For details, please refer to “(3) Notes to consolidated financial statements (Application of specific accounting for preparing
quarterly consolidated financial statements)” of “2. Consolidated financial statements and significant notes thereto” on page 9 of
the attached material.

Note: For details, please refer to “(3) Notes to consolidated financial statements (Changes in accounting policies)” of “2. Consolidated
financial statements and significant notes thereto” on pages 9-10 of the attached material.

(4)

Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021
57,154,776 shares
As of March 31, 2021
57,154,776 sharesb. Number of treasury shares at the end of the period
As of September 30, 2021
78,382 shares
As of March 31, 2021
79,982 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021
57,075,423 shares
Six months ended September 30, 2020
57,137,826 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* 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 our company and on certain assumptions deemed to be reasonable. As
such, they do not constitute guarantees by our company of future performance. Actual performance and otherresults 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 “(3) Explanation of consolidated financial forecasts and other forward-looking
statements” of “1. Qualitative information regarding settlement of accounts for the six months ended
September 30, 2021” on page 4 of the attached material to the quarterly financial results report.

-2-

(Attached Material)
1. Qualitative information regarding settlement of accounts for the six months ended September 30,
2021(1) Explanation of operating results
During the six months ended September 30, 2021, net sales was ¥118,507 million, an increase of ¥20,380
million (+20.8%) year on year. Gross profit was ¥25,784 million, an increase of ¥16,900 million(+190.2%) year on year. Main factors behind the year-on-year increase for net sales and increase for grossprofit were improvements in sales of crude oil in Japan and diluted bitumen due to a rise in crude oil prices
and an increase in the electricity sales volume from the Fukushima Natural Gas Power Plant
accompanying it operating for the full reporting period, despite a decrease in revenue due to the netpresentation of most of the crude oil purchase and sales following the application of the AccountingStandard for Revenue Recognition.
Exploration expenses was ¥252 million, a decrease of ¥134 million (-34.8%) year on year. Selling, generaland administrative expenses was ¥15,991 million, an increase of ¥1,222 million (+8.3%) year on year. As aresult, operating profit improved by ¥15,812 million year on year to ¥9,540 million (operating loss of¥6,271 million in the same period of the previous fiscal year).
Ordinary profit improved by ¥26,187 million year on year to ¥19,349 million (ordinary loss of ¥6,837 million
in the same period of the previous fiscal year), due mainly to the turnaround from foreign exchange losses
to foreign exchange gains and an increase in share of profit of entities accounted for using equity method.
Loss before income taxes deteriorated by ¥112,462 million to ¥119,315 million compared with the same
period of the previous fiscal year, mainly due to the recording of loss on sale of shares of subsidiaries
resulting from the transfer of all the shares in Japan Canada Oil Sands Limited (JACOS), a consolidated
subsidiary that promotes the oil sands project in Canada, and loss on transfer of interests resulting from thetransfer of JAPEX Montney Ltd. (JML)’s interest in the shale gas project of North Montney Area in British
Columbia, Canada. Loss attributable to owners of parent deteriorated by ¥112,700 million to ¥119,676
million compared with the same period of the previous fiscal year.
Below is a breakdown of net sales.
(i) E&P BusinessNet sales from the E&P Business came to ¥49,820 million, an increase of ¥12,273 million (+32.7%)
year on year, mainly due to higher sales prices of crude oil, natural gas (overseas) and diluted bitumen,
despite a decrease in most of the crude oil purchase and sales due to the impact of the net presentation.
(ii) Infrastructure/Utility BusinessNet sales from the Infrastructure/Utility Business came to ¥46,382 million, an increase of ¥2,400
million (+5.5%) year on year. This was mainly the result of an increase in the electricity sales volume
due to the Fukushima Natural Gas Power Plant operating for the full reporting period, despite thedecrease from a lower sales price and reduced sales volume for natural gas (Japan).
(iii) Other Businesses
Net sales from other businesses, such as the contract services (drilling and geological surveys, etc.),
sale of oil products, including liquefied petroleum gas (LPG), fuel oil and the like, as well as othersubcontracted tasks, came to ¥22,303 million, an increase of ¥5,706 million (+34.4%) year on year.

(2)

Explanation of financial position
At the end of the second quarter, total assets decreased by ¥175,742 million from the previous fiscal yearend to ¥449,044 million.
Current assets decreased by ¥48,840 million from the previous fiscal year-end. This was mainly due todecreases in cash and deposits, and notes and accounts receivable - trade. Non-current assets decreased by¥126,901 million from the previous fiscal year-end. This was due mainly to a decrease in property, plantand equipment resulting from excluding JACOS from consolidation by the sale of all the shares of JACOS,-3-

despite an increase due to a rise in market values in investment securities, and an increase in recoverable
accounts included in other under investments and other assets.
Liabilities decreased by ¥62,458 million from the previous fiscal year-end to ¥127,835 million.
Current liabilities decreased by ¥11,867 million from the previous fiscal year-end. This was due mainly tothe decrease in current portion of long-term borrowings included in other because of JAPEX fulfilling its
guarantee obligation for consolidated subsidiary JML’s borrowings. Also, regarding this borrowing, theamount of the subrogation payment received from the guarantor was transferred to reimbursement
obligation. Non-current liabilities decreased by ¥50,591 million from the previous fiscal year-end. Thiswas mainly due to the decrease of long-term borrowings by fulfilling guarantee obligation of JACOS’s
borrowings, despite an increase in deferred tax liabilities resulting from the above-mentioned rise inmarket values of investment securities.
Net assets decreased by ¥113,283 million from the previous fiscal year-end to ¥321,208 million.
The main factor was a decrease in retained earnings, despite an increase in valuation difference on availablefor-sale securities.

(3) Explanation of consolidated financial forecasts and other forward-looking statements
The consolidated financial forecasts for the fiscal year ending March 31, 2022 have been revised from theforecasts announced on August 10, 2021.
Please refer to the “Notice of Financial Forecasts Revision” released on November 9, 2021, the same day ofthis report.

-4-

2. Consolidated financial statements and significant notes thereto(1) Consolidated quarterly balance sheet(Millions of yen)

As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsSecurities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Allowance for overseas investment loss
Total investments and other assets
Total non-current assets
Total assets-5-

As of September 30, 2021

162,368
39,519102,098––

31,500

3,030
4,297
140
8,001
3,715
(38)
221,034

3,060
3,552
171
10,274
21,574(37)
172,193

157,841
108,903266,745

38,68665,030103,717

6,129
6,129

5,910
5,910

105,070
26,224(44)(373)
130,877
403,752
624,786

123,266
44,184(44)(185)
167,222
276,850
449,044(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Reimbursement obligations
Provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Provisions
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated 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
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

As of September 30, 2021

21,546––
1,528
80,702
103,776

20,201
10,10047,066
1,528
13,01391,90950,180
7,919
3,545
971
21,262
2,637
86,517
190,294

770
9,716
3,442
420
18,9962,581
35,926
127,835

14,288–344,438(151)
358,575

14,2882,607
223,333(149)
240,081

44,228(488)(3,810)1,667
41,59634,320434,492
624,786

53,249(832)(3,189)1,548
50,77630,350321,208
449,044(2) Consolidated quarterly statement of income and Consolidated quarterly statement ofcomprehensive income
Consolidated quarterly statement of income
Six months ended
September 30, 2020
Net sales
Cost of sales
Gross profit
Exploration expenses
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Late charges
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of shares of subsidiaries
Loss on transfer of interests
Other
Total extraordinary losses
Loss before income taxes
Income taxes
Loss
Profit (loss) attributable to non-controlling interests
Loss attributable to owners of parent-7-(Millions of yen)Six months ended
September 30, 2021

98,127
89,242
8,884
387
14,769(6,271)

118,50792,72225,784
252
15,991
9,540

334
1,332

87
2,186

3,366

6,470

–
431
5,465

3,941
450
13,137

1,782
–
3,971
277
6,031
(6,837)

1,305
1,087
–
934
3,327
19,349

–
–

16
16

14
–
–
0
15
(6,852)636(7,489)(514)(6,975)

4
94,12244,281
272
138,681(119,315)(484)(118,831)
844(119,676)

Consolidated quarterly statement of comprehensive income(Millions of yen)Six months ended
September 30, 2020
Loss
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 of parent
Comprehensive income attributable to non-controllinginterests-8-

Six months ended
September 30, 2021

(7,489)(118,831)(3,536)(183)(2,245)
(85)

9,023
(224)
205
(118)

(1,472)(58)(7,524)(15,014)8,827(110,004)(14,417)(110,496)

(597)

491

(3) Notes to quarterly consolidated financial statements(Notes on premise of going concern)
No item to report.

(Notes on significant changes in the amount of shareholders’ equity)
No item to report.

(Changes in significant subsidiaries during the six months under review)

Japan Canada Oil Sands Limited has been excluded from the scope of consolidation because all held
shares of the said company were sold during the second quarter of the fiscal year under review.
It is considered certain that this change in the scope of consolidation has significant effects on the
consolidated financial statements for the fiscal year under review in which the second quarter falls, and adecrease in total assets in the consolidated balance sheet, a decrease in net sales in the consolidated
statement of income, etc. are expected.

(Application of specific accounting for preparing quarterly consolidated financial statements)
Deferral accounting of cost variance

Cost variance arising from seasonal changes in production level is deferred as current assets (other) andcurrent liabilities (other) because such variance is expected to be almost completely eliminated by the endof the cost accounting period.

Calculation of taxes

For the taxes, JAPEX and some of its consolidated subsidiaries compute first by reasonably estimating theeffective tax rate after applying tax effect accounting against profit before income taxes for the fiscal year
including the second quarter, and next by multiplying the quarterly profit before income taxes by such
estimated effective tax rate.
However, in cases where the calculation of taxes using such estimated effective tax rate yields a result thatis not reasonable to a significant extent, the effective statutory tax rate is used.
Note that income taxes - deferred is included in income taxes.

(Changes in accounting policies)
Application of Accounting Standard for Revenue Recognition, Etc.

As the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) andrelevant revised ASBJ regulations were applied from the beginning of the first quarter of this fiscal year,
we concluded to recognize the revenue at the time the control of promised goods or services is transferredto the client, at the amount expected to be received upon the exchange of said goods or services.
The JAPEX Group conducts the “E&P Business,” the “Infrastructure/Utility Business,” and “Other
businesses” in the four reportable segments provided in the segment information: “Japan,” “North
America,” “Europe” and “Middle East.”
In the E&P Business, exploration, development, production, provision of production services, and sales ofcrude oil and natural gas are conducted at business locations in Japan and overseas. It is judged that inthese sales, legal ownership and physical possession of assets, as well as significant risks and economic
rewards associated with ownership of assets, are transferred, and the right to receive consideration fordelivered products is obtained, at the time the products are delivered to clients. Thus, revenue is recognizedat that time. As for provision of production services, when control over goods or services is transferred toclients over time, revenue is recognized according to progress in the satisfaction of performanceobligations. For measurement of progress, the output approach based on production volume is used.
In the Infrastructure/Utility Business, sales of gases (natural gas and LNG) and electricity are conducted atbusiness locations in Japan. It is judged that in these sales, legal ownership and physical possession ofassets, as well as significant risks and economic rewards associated with ownership of assets, aretransferred, and the right to receive consideration for delivered products is obtained, at the time theproducts are delivered to clients. Thus, revenue is recognized at that time.
In the Other businesses, contract services (drilling and geological surveys, etc.) and sales of oil products,
etc. are conducted at business locations in Japan. As for contract services, when control over goods orservices is transferred to clients over time, revenue is recognized according to progress in the satisfactionof performance obligations. For measurement of progress, the input approach based on incurred costs isused. It is judged that in sales of oil products, etc., legal ownership and physical possession of assets, aswell as significant risks and economic rewards associated with ownership of assets, are transferred, and theright to receive consideration for delivered products is obtained, at the time the products are delivered toclients. Thus, revenue is recognized at that time.
-9-

In identification of performance obligations, it is examined whether the JAPEX Group acts as a principal
or an agent. If the nature of its promise is a performance obligation to provide the specified goods orservices itself, as a principal it presents revenue at the gross amount of consideration in its consolidated
statement of income. If the nature is a performance obligation to make arrangements so that these goods orservices are provided by other parties, as an agent it presents revenue at the amount of commissions or
fees, or the net amount of consideration, in its consolidated statement of income.
Revenue is recognized based on the transaction price under contracts with clients. If a contract contains
multiple performance obligations, the transaction price is allocated to each performance obligation at aratio of standalone selling price. Since consideration for transactions is usually paid within one year after
the satisfaction of performance obligations, such consideration does not include any significant financial
component.
The application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations is subject to the transitional treatment provided for in the proviso to paragraph 84 of the
Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application,
assuming the new accounting policy had been applied to periods prior to the beginning of the first quarterof the current fiscal year was added to or deducted from the opening balance of retained earnings of thefirst quarter of the current fiscal year, and thus the new accounting policy was applied from such opening
balance; provided, however, that the new accounting policy was not retrospectively applied to contracts forwhich nearly all the revenue amounts had been recognized according to the previous treatment in periods
prior to the beginning of the first quarter of the current fiscal year, by applying the method provided for inparagraph 86 of the Accounting Standard for Revenue Recognition.
Consequently, for the six months ended September 30, 2021, net sales decreased by ¥36,919 million, costof sales decreased by ¥36,895 million, and selling, general and administrative expenses decreased by ¥24
million. There was no effect on operating profit, ordinary profit, and loss before income taxes. In addition,
there was also no effect on the opening balance of retained earnings of the current fiscal year.
Due to the application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations, “Notes and accounts receivable - trade” under current assets of the consolidated balance sheet
as of the end of the previous fiscal year has been included in “Notes and accounts receivable - trade, andcontract assets” under current assets from the quarterly consolidated balance sheet as of the end of the firstquarter of the current fiscal year. In accordance with the transitional treatment provided for in paragraph89-2 of the Accounting Standard for Revenue Recognition, figures for the previous fiscal year have notbeen restated in accordance with the new approach to presentation. Furthermore, the information on
disaggregation of revenue from contracts with clients during the first six months of the previous fiscal year
has not been disclosed as allowed by the transitional treatment provided for in paragraph 28-15 of the
Accounting Standard for Quarterly Financial Reporting.

Application of Accounting Standard for Fair Value Measurement, Etc.

We concluded to apply the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of this fiscal year. And
we decided to apply new accounting policies stipulated in the Accounting Standard for Fair Value
Measurement and relevant ASBJ regulations prospectively in accordance with the transitional treatment
provided for in paragraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There wasno effect of this application on the consolidated financial statements.

- 10 -

(Additional information)
Accounting estimates in connection with the spread of novel coronavirus disease (COVID-19)

At the end of the second quarter, although the number of new COVID-19 cases decreased considerably inJapan, the infections tended to spread again in certain countries and regions. As such the specificdissipation of the COVID-19 pandemic remains uncertain and the impact on economic activities in Japanand overseas has continued. Although the timing COVID-19 dissipates is still unknown and difficult to bepredicted, we expect that the situation will gradually recover as time goes by.
The Garraf Oil Field in the southern part of the Republic of Iraq, which had temporarily suspended its
development and production operation due to the impact of COVID-19, resumed its production operationfrom July last year. However, due to restrictions on transfer and other factors, the additional development
was delayed and therefore, the increase in production volume to a scale of 230,000 barrels a day, which
was expected at the end of last year, will be delayed to later years. Also, production commencement fromUK North Sea’s Seagull field, which was scheduled for the end of this year, has been delayed to early 2023
as a result of revising the development plan, which considers the impact of COVID-19 and others.
At present, despite the trend of rising crude oil prices in the short term that reflects the policy of the
production reduction measure maintained by OPEC Plus, globally soaring LNG prices, and other factors,
we consider that the prolonging of the effects of the COVID-19 pandemic and the global movement
toward decarbonization could give rise to the possibility of irreversible structural changes in various areas
such as energy demand and environmental concerns, which could suppress the demand for fossil fuels forsome considerable time. Moreover, there have been calls to focus on a “green recovery” while undertaking
the global economic recovery from the COVID-19 pandemic, which could further accelerate the growing
tide of decarbonization. In light of the changes in the business environment surrounding our company andthe trend of rising global carbon prices, our projection for the medium- to long-term oil price is set at $50
per barrel.
Should assumptions change under such circumstances, we have options involving recoverability ofdeferred tax assets with respect to accounting estimates of high uncertainty. The estimate change resulting
from the above-mentioned hypothetical fluctuations may impact taxable income for the JAPEX Group
including its consolidated subsidiaries, and the amount of deferred tax assets recorded may increase or
decrease.

(Changes to fiscal year of consolidated subsidiaries)

Previously, concerning JAPEX’s consolidated subsidiary, Japex Garraf Ltd., whose closing date is
December 31, the quarterly consolidated financial statements for the relevant period were prepared using
the quarterly financial statements for the same quarterly accounting period of said subsidiary as a basis andmaking necessary adjustments for major transactions that occurred between said subsidiary’s closing date
and the consolidated closing date. However, said subsidiary has changed to the method of performing
provisional closing on the consolidated closing date in order to offer more appropriate understanding ofbusiness information and disclosure of quarterly consolidated financial statements.

- 11 -

(Significant subsequent events)
Sale of investment securities

Based on the resolution on the writing of its Board of Director’s meetings on November 5, 2021, JAPEX
sold part of its investment securities on November 8. As a result of the sale, JAPEX expects to book a gainon sales of investment securities (extraordinary income).
(1) Reasons for sale of investment securities
Since the establishment of North Sumatra Offshore Petroleum Exploration Co., Ltd., the precursor to
INPEX CORPORATION (hereinafter “INPEX”), JAPEX holds a certain percentage of the shares of
INPEX as a strategic shareholding in order to facilitate collaboration and other business relationships
in Japan and overseas.
On the other hand, we evaluate qualitatively and quantitatively the rationality of strategic
shareholdings, and reduce its holdings when we judge that the rationality has diminished. As a result ofreviewing the level of our holdings of the INPEX's shares from the perspective of asset efficiency andother factors, we have decided to reduce the ratio of such holdings.
(2) Details of the sale of investment securities
1. Stock name of sale:
2. Date of sale:
3. Number of shares sold:
4. Value of sale
5. Gain on sales of investment securities:

INPEX CORPORATION
November 8, 2021
53,446,600 shares
50,560 million yen
39,826 million yen

Repurchase and cancellation of own shares

JAPEX’s Board of Directors resolved the repurchase of its own shares in accordance with the provisions ofArticle 156 of the Companies Act as applied pursuant to Article 165, Paragraph 3 of the same Act and thecancelation of part of the own shares in accordance with the provisions of Article 178 of the Companies
Act on November 9, 2021.
(1) Reasons for the repurchase and cancellation of its own shares
We will allocate a part of the proceeds from the sale of common shares of INPEX sold on November 8,
2021, and repurchase the own shares, in order to return the proceeds to shareholders and improve
capital efficiency. In addition, all of the own shares to be repurchased this time will be cancelled inorder to increase shareholder profits through a decrease in the total number of shares issued.
(2) Details of resolution of Board of Directors for repurchase of own shares
1. Types of shares to be repurchased:
Common shares
2. Total number of shares to be repurchased:
Up to 3 million shares(5.25% of the total number of outstanding shares
excluding treasury shares)
3. Total value of shares to be repurchased:
Up to 8 billion yen
4. Repurchase period:
From November 10, 2021 to November 9, 2022
5. Repurchase method:
Market purchases based on the discretionary dealing
contract regarding repurchase of own shares(2) Details of resolution of Board of Directors for cancellation of own shares
1. Types of shares to be cancelled:
Common shares
2. Total number of shares to be cancelled:
All of the shares repurchased as stated in (2) above
3. Scheduled date of cancellation:
November 30, 2022

- 12 -

3. Supplemental information
Status of production and sales(1) Production
Six months ended
September 30, 2020
(April 1, 2020 –September 30, 2020)

Six months ended
September 30, 2021
(April 1, 2021 –September 30, 2021)(Reference)
Fiscal year ended
March 31, 2021
(April 1, 2020 – March 31, 2021)

369,134

468,284

849,859(218,172)(327,049)(541,855)

482,305

371,479

1,032,521(231,341)(129,984)(473,685)

393,973

656,377

889,315(393,973)(656,377)(889,315)

LNG (t)3,012
1,717
Electricity(thousand
1,028,039
1,430,044
kWh)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.

3,341

Crude oil (kl)E&P
Business

Natural gas(thousand m3)
Bitumen (kl)Infrastructure/
UtilityBusiness- 13 -

2,543,189

(2) Sales
Six months ended

Six months ended

September 30, 2020

(April 1, 2020 –September 30, 2020)
Net sales
Sales volume(Millions of yen)

Crude oil (kl)E&P
Business

Dilutedbitumen (kl)Natural gas(overseas)(thousand m3)(Millions of yen)

(Millions of yen)

28,452

345,053

17,4942,313,521

72,916

613,749

7,757

959,777

31,121

1,319,808

21,695229,406

1,336

128,747

1,204

470,5102,870

37,547

49,82097,482Natural gas(Japan)(thousand m3)

520,790

25,059455,915

21,2381,183,102

51,291

LNG (t)94,968

6,475

96,9608,186

284,216

15,591

1,274,132

10,042

1,605,817

14,9983,016,755

30,087

Electricity(thousand kWh)
Others

2,405

1,960

4,331

43,982

46,382

101,301

3,447

3,394

7,633

12,254

17,85331,931

895

1,055

1,729

Subtotal

16,59722,303

41,294

Total

98,127

118,507240,078

Subtotal

Otherbusinesses(April 1, 2021 –September 30, 2021)
Net sales
Sales volume(Reference)
Fiscal year ended
March 31, 2021
(April 1, 2020 – March 31, 2021)
Net sales
Sales volume

1,126,289

Subtotal

Infrastructure/Utility
Business

September 30, 2021

Contract
Services
Oil products/merchandise
Others

Notes: 1. “Crude oil” includes crude oil that the JAPEX Group produces in oil fields and the crude oil purchased from othercompanies.
2. Diluted bitumen is bitumen diluted by ultra-light crude oil for pipeline transportation.
3. “Natural gas (Japan)” of the Infrastructure/Utility Business refers to gas supplied in Japan via pipeline andcomprises the total of natural gas produced in Japan and regasified LNG. Natural gas (Japan) is classified underthe Infrastructure/Utility Business, since both natural gas produced in Japan and LNG vaporized gas are soldtogether by our company’s supply network, which consists of the natural gas fields in Japan and the LNG
terminals that vaporize gas linked by a pipeline network.
4. “Others” of the Infrastructure/Utility Business includes commissioned transportation of natural gas and contracted
vaporization of LNG used for power plant fuel.
5. Under the Other businesses, “Oil products/merchandise” includes liquefied petroleum gas (LPG), fuel oil, gas oiland kerosene, and “Others” includes other subcontracted tasks.
6. Monetary amounts in the table do not include consumption taxes.

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