Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
<under Japanese GAAP>May 12, 2016
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, 2016
Scheduled date to commence dividend payments:
June 27, 2016
Scheduled date to file Securities Report:
June 27, 2016
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, 2016
(April 1, 2015 – March 31, 2016)(Percentages indicate year-on-year changes.)
Consolidated operating results
Net sales

Operating income

Fiscal year ended

Millions of yen

March 31, 2016

240,302(21.2)

8,336(74.1)

4,652(91.5)

2,090(92.9)March 31, 2015

304,91110.2

32,14630.5

54,83924.929,5671.9

Note: Comprehensive income:% Millions of yen

Profit attributable toowners of parent

Ordinary income

FY2016/3: (50,923) million yen (– %)% Millions of yen% Millions of yen%

FY2015/3: 45,151 million yen (1.4 %)Ratio ofRatio of
Return on equity ordinary income to operating income tototal assets
sales

Basic earnings per
share

Diluted earnings
per share

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2016

36.58

–

0.5

0.6

3.5

March 31, 2015

517.35

–

6.7

7.8

10.5

Reference: Equity in earnings (losses) of affiliates: FY2016/3: 1,624 million yen(2)

FY2015/3: 11,996 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, 2016

707,601495,31759.5

7,366.40

As of March 31, 2015

736,862

540,647

62.5

8,055.59

Reference: Equity

As of March 31, 2016: 421,009 million yen

As of March 31, 2015: 460,398 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, 2016

57,659(125,771)

54,816

126,570

March 31, 2015

78,666(63,031)

18,475

142,657

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, 2015

–

25.00

–

25.00

50.00

2,857

9.7

0.6

Fiscal year ended
March 31, 2016

–

25.00

–

25.00

50.00

2,857

136.7

0.6

Fiscal year ending
March 31, 2017
(Forecast)

–

25.00

–

25.00

50.00

3.

144.0

Consolidated financial forecasts for the fiscal year ending March 31, 2017 (April 1, 2016 – March 31, 2017)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Profit attributable Basic earnings per
Ordinary income to owners of parent
shareMillionsof yenMillionsof yen%Millionsof yenFor the six months
ending September 30,
2016

80,596(35.1)(2,339)–(372)

Fiscal year ending
March 31, 2017

194,575(19.0)

400(95.2)

1,014%

Millionsof yen

%

Yen

–

657

(91.7)

11.50(78.2)

1,985

(5.1)

34.73

%

*
(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, 201657,154,776 shares
As of March 31, 2015
57,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2016
2,139 shares
As of March 31, 2015
2,139 sharesc. Average number of shares during the period
Fiscal year ended March 31, 201657,152,637 sharesFiscal year ended March 31, 2015
57,152,637 shares-2-Reference: Summary of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2016
(April 1, 2015 – March 31, 2016)(Percentages indicate year-on-year changes.)(1) Non-consolidated operating results
Net sales

Operating income% Millions of yen

Ordinary income% Millions of yen

ProfitFiscal year ended

Millions of yen

March 31, 2016

181,378(20.2)

11,845(40.7)

15,764(40.6)

10,310(48.7)March 31, 2015

227,251

9.7

19,97320.8

26,560(19.1)

20,088(12.3)

Basic earnings per share

Diluted earnings per
share

Fiscal year ended

Yen

Yen

March 31, 2016180.41–March 31, 2015

351.49–(2)% Millions of 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, 2016

449,679

365,28881.2

6,391.46

As of March 31, 2015

488,789

393,43780.5

6,883.97

Reference: Equity

As of March 31, 2016: 365,288 million yen

As of March 31, 2015: 393,437 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, 2016 (Thursday), 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,
2016 (Friday). JAPEX plans to post the material distributed at this presentation meeting on its website
promptly after the meeting is held.
(Changes in functional currency of foreign consolidated subsidiaries)
From the third quarter ended December 31, 2015, Japan Canada Oil Sands Limited, a foreign consolidated
subsidiary of the Company, has changed its functional currency from the Canadian dollar to the U.S. dollar.

-3-

(Attached Material)
1. Analysis of operating results and financial position(1) Analysis of operating results
In the fiscal year ended March 31, 2016, the Japanese economy continued with a moderate tone of recovery
with trends of improvement in corporate earnings and the employment situation continuing from the previous
fiscal year despite weak trends in exports and production resulting from a global economic slowdown andother factors as the economies of emerging countries in Asia and resource-producing countries slowed down.
The Japan Crude Cocktail (JCC) price recovered to around $65 per barrel in June 2015 after trending in thehigh end of the $50 range in early 2015, but again turned downward as OPEC left its production target
unchanged, and, at the end of the fiscal year, it was languishing in the low end of the $30 range.
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 around the high end of the¥110 range, depreciating to around ¥125 during the summer, but then changed course, appreciating to the low
end of the ¥110 range by the end of the fiscal year. As a result, the JAPEX Group’s crude oil prices for the
fiscal year significantly fell compared with the previous fiscal year, due to the effect of weak JCC prices.
Natural gas, on the other hand, became less competitive compared with competing energy sources as the priceof petroleum products, etc. declined due to falling crude oil prices and efforts to bring more natural gas
supply infrastructure online continued to move forward. As a result, the JAPEX Group faced a severe 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 ¥240,302 million, a decrease of ¥64,609 million(-21.2%) year on year, and gross profit was at ¥47,279 million, a decrease of ¥22,982 million (-32.7%) year
on year. The main factors behind the year-on-year decreases in net sales and gross profit were falls in sales
prices of domestically produced crude oil, overseas crude oil and natural gas, and a decrease in sales volume
of domestically produced crude oil.
Exploration expenses increased by ¥2,026 million (+45.1%) year on year to ¥6,516 million. This was mainly
the result of a considerable increase in overseas expenditures. Selling, general and administrative expenses
decreased by ¥1,198 million (-3.6%) year on year to ¥32,426 million. As a result, operating income decreasedby ¥23,810 million (-74.1%) year on year to ¥8,336 million.
Ordinary income decreased ¥50,187 million (-91.5%) year on year to ¥4,652 million. This was mainly
because of a decrease in share of profit of entities accounted for using equity method, and the turnaroundfrom foreign exchange gains in the previous fiscal year to foreign exchange losses.
Profit before income taxes was ¥1,508 million, a decrease of ¥48,864 million (-97.0%) year on year. This
mainly reflected a decrease in extraordinary losses of ¥1,282 million accompanying a decrease in impairment
losses.
Profit attributable to owners of parent was at ¥2,090 million, a decrease of ¥27,477 million (-92.9%) year on
year.

-4-

Below is a breakdown of sales.
(i) E&P
Net sales from E&P (including liquefied natural gas (LNG) and bitumen) came to ¥189,103 million, adecrease of ¥56,528 million (-23.0%) year on year. This was mainly the result of fall in sales price and adecrease in sales volume of domestically produced crude oil.
(ii) Contract Services
Net sales from contract services (involved in drilling and geological surveys) came to ¥9,797 million, adecrease of ¥690 million (-6.6%) 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, etc., as well as other subcontracted tasks, came to¥41,401 million, a decrease of ¥7,390 million (-15.1%) year on year.
Below is a summary of performance by segment (before elimination of intersegment transactions).
Starting from the fiscal year under review, we have begun to report the performance of the Europe 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 ¥228,373 million, a decrease of¥52,346 million (-18.6%) year on year, due mainly to a fall in sales price and a decrease in sales volume.
Segment profit came to ¥24,970 million, a decrease of ¥10,234 million (-29.1%) year on year. This was
mainly due to the above-mentioned decrease in net sales, despite a decrease in selling, general andadministrative expenses.
(2) North America
Net sales from the North America segment is mainly composed of E&P (including bitumen). Net sales cameto ¥10,008 million, a decrease of ¥12,720 million (-56.0%) year on year due mainly to a fall in sales price.
There was segment loss of ¥6,812 million (compared to segment profit of ¥3,223 million in the previous
fiscal year). This was mainly due to the above-mentioned decrease in net sales, despite a decrease in
exploration expenses.
(3) Europe
We report exploration activities in the UK North Sea block located offshore of Aberdeen in the Europe
segment. There was segment loss of ¥3,905 million (compared to segment loss of ¥381 million in theprevious fiscal year) as a result of an increase in exploration expenses.
(4) Middle East
Net sales from the Middle East segment are mainly composed of crude oil. Net sales came to ¥46,516 million,
an increase of ¥7,001 million (+17.7%) year on year, due mainly to an increase in sales volume despite a fallin sales price. Segment profit came to ¥4,486 million, decreasing by ¥755 million (-14.4%) year on year as
cost of sales also rose.
Outlook for the fiscal year ending March 31, 2017
The latest financial forecasts are based on a JCC price of $40 per barrel for the first and second quarters and$50 per barrel for the third and fourth quarters, and an exchange rate of ¥115/$ for the whole fiscal year.
Actual non-consolidated results for the fiscal year under review came to $51.48 per barrel and ¥121.06/$.
Net sales for the fiscal year ending March 31, 2017 is expected to decrease by ¥45,727 million (-19.0%) fromthe fiscal year under review to ¥194,575 million. This is because we expect a decline in the sales volumes anda fall in sales price of crude oil and domestically produced LNG.
Operating income is expected to decrease ¥7,937 million (-95.2%) from the fiscal year under review to ¥400
million as we expect declines in sales costs, exploration expenses, and selling, general and administrative
expenses.
Ordinary income is expected to decrease ¥3,638 million (-78.2%) from the fiscal year under review to ¥1,014-5-

million, mainly due to a decline in foreign exchange losses, despite an expected decline in share of profit ofentities accounted for using equity method.
Profit attributable to owners of parent is expected to decrease ¥106 million (-5.1%) from the fiscal year underreview to ¥1,985 million, mainly due to the absence of the impairment loss posted under extraordinary losses
in the fiscal year under review and a decline in taxes.

-6-(2) Analysis of financial position
a. Balance sheet
Total assets at the end of this fiscal year stood at ¥707,601 million, a decrease of ¥29,260 million from theprevious fiscal year-end.
Current assets decreased by ¥24,854 million from the previous fiscal year-end to ¥173,638 million, mainly
due to decreases in securities and short-term loans receivable. Non-current assets decreased by ¥4,406 million
to ¥533,963 million, mainly due to a decrease in investment securities, despite an increase in construction inprogress.
Total liabilities increased by ¥16,069 million from the previous fiscal year-end to ¥212,284 million.
Current liabilities decreased by ¥80,578 million from the previous fiscal year-end to ¥32,290 million, mainly
due to a decrease in short-term loans payable, etc. Non-current liabilities increased by ¥96,648 million to¥179,994 million, mainly due to an increase in long-term loans payable.
Total net assets decreased by ¥45,330 million from the previous fiscal year-end to ¥495,317 million.
Shareholders’ equity decreased by ¥609 million from the previous fiscal year-end to ¥360,109 million.
Accumulated other comprehensive income decreased by ¥38,779 million to ¥60,899 million, due to adecrease in valuation difference on available-for-sale securities. Non-controlling interests decreased by¥5,941 million to ¥74,308 million.
b. Cash flows
As of March 31, 2016, cash and cash equivalents (hereinafter, “net cash”) totaled ¥126,570 million, down
¥16,086 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 ¥57,659 million. The main factors were ¥41,402
million in recovery of recoverable accounts and ¥17,078 million in depreciation.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥125,771 million. Net cash was mainly used in purchase ofproperty, plant and equipment of ¥92,953 million and payments of recoverable accounts of ¥42,958 million,
while net cash was mainly provided by interest and dividend income received of ¥5,784 million andcollection of loans receivable of ¥5,065 million.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥54,816 million. Net cash was mainly provided by net ofproceeds and repayments of long-term loans payable of ¥93,318 million and proceeds from share issuance tonon-controlling shareholders of ¥11,005 million, while net cash was mainly used by net of proceeds andrepayments of short-term payable of ¥42,743 million.

-7-

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

2012

2013

2014

2015

2016

Equity ratio (%)

73.7

72.8

63.7

62.5

59.5

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

41.3

40.6

29.6

31.6

20.4

Interest-bearing debt to cash flow ratio (years)

0.9

0.8

1.2

1.0

2.3

197.6

110.9

53.2

99.4

83.6

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.

-8-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 through exploration, development, production, and sale of oil
and natural gas. Guided by this mission, JAPEX has steadily discovered oil and natural gas reserves to resultin the business base of today.
As our supply volume increases, the social responsibility of JAPEX Group for stable supply is growing. The
JAPEX Group realizes that as well as increasing reserves, it is important to build new business model such as
expanding and utilizing natural gas transportation systems. Therefore, the JAPEX Group aims to develop as acompany with the competitive capabilities, responding to changes in its operating environment. The corporate
vision of the JAPEX Group is as follows:
JAPEX is committed to contributing to local communities through a stable supply of energy
・ Explore for, develop, produce and deliver oil and natural gas both in Japan and overseas.
・ Further enhance the natural 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 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, production andsales of these resources. Additionally, with factors such as intensification in the competitive environment forthe 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. In response to this, in May 2015, JAPEX announced its Long Term Business Vision aiming
10 years and its Medium-Term Business Plan for five fiscal years from April 2015 to March 2020 in order toachieve this Long Term Business Vision.
Details of the Long Term Business Vision and Group Medium-Term Business Plan may be accessed with thefollowing URL.
http://www.japex.co.jp/english/newsrelease/JAPEX_LongTermVision_E_20150512_r0513.pdf“Long Term Business Vision and Medium-Term Business Plan of the JAPEX Group ”
Although international oil prices have fallen rapidly from the second half of 2014 and the outlook for recovery
is still unclear, we have perception that crude oil and natural gas will further be a vital source as a primaryenergy in the world. In this Long Term Business Vision and Medium-Term Business Plan, we have set out thecourse of future initiatives for further development of the policies for business expansion set in the previous
Medium-Term Business Plan (April 2011 to March 2016, hereafter “Previous Plan”). The summaries are as
follows.

(Long-term vision)“Transformation to an Integrated Energy Company, with a Focus on Oil and Gas E&P Business”
By shifting the business foundation overseas as per the Previous Medium-Term Plan, the production volume
is expected to be 100,000 barrels/day, and the size of reserves is expected to be 550 million barrels at the endof March 2020, 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 theleap to 2025.

-9-

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 first 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
realize that we have to make efforts for reducing impact of oil price fluctuation on operating results as muchas possible, and business diversification to maximize the stability of the JAPEX Group business.

To this end, concerning our business fields that have 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, base peripheral businesses, etc.)
and new business fields where unique and advanced E&P technologies held by the JAPEX Group can beapplied (e.g. commercialization of Environment and Innovative Technology Business, exploration projects foroffshore mineral resources, etc.) for aiming to expand revenues from businesses not only outside theconventional framework of the E&P business.
(Business development Objective)“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.
• Sustain RRR > 1 (Note) even after 2020 to complete of developments of our ongoing projects.
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 procurement sources of natural gas, and upgrade our supply infrastructures.
• Commerce Soma LNG Terminal operation as planned, and launch the narural gas power generation business.
• Aim to be a natural gas supplier handling 2.5 Million tons (LNG equivalent of natural gas) per year by 2025.
“Environment and Innovative Technology Business”• Develop technologies for practical use concerning methane hydrate.
• Promote to develop technologies for CCS (CO2 Capture and Storage) driving verification test and identifying
requirements such as systems for commercial business.
• Promote to develop geothermal power generation projects for commercialization.
etc.
“CSR Management”• Promote initiatices of “SHINE” that realize the goals of JAPEX’s core CSR issues to respond expectations
and demands of all stakeholders and grow a trustable global company.
(Earnings Target)• Maximize the scale of revenue by complete management of the ongoing projects.
• Keep “Stable Dividend” even when oil prices is sluggish.
• Increase return to shareholders when oil prices recover and ongoing projects contribute to our profits.

The JAPEX Group aims to further strengthen the Group base and competitiveness in business as well as
strongly promote operational efficiency so that the Group will pursue sustainable development and maximize
its value for shareholders.

- 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, 2015
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 March 31, 2016

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

104,359
24,642
23,551
4,414
29
4,135
1,078
28
11,430(30)
173,638

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

168,808(127,005)
41,802
109,468(75,421)34,046116,174(96,057)
20,11645,956(5,021)40,935
13,719179,420
21,241(15,063)
6,177
336,218

9,949
9,949

9,698
9,698

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

135,261
16,522
3,575
888
34,705(58)(2,847)
188,046
533,963
707,601

(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
Capital surplus
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
Non-controlling interests
Total net assets
Total liabilities and net assets- 13 -

As of March 31, 2015

As of March 31, 2016

6,728
50,809120
55,210112,868

8,585–
67
23,63732,29020,72636,657874
3,534
17,475
4,077
83,346196,214130,030
24,26788
3,574
17,811
4,221
179,994
212,284

14,288–346,441(10)
360,719

14,288
157
345,674(10)
360,109

86,17450,554

3
12,980521
99,67880,249540,647
736,8623
10,087
253
60,89974,308495,317707,601

(2) Consolidated statement of income and Consolidated statement of comprehensive income
Consolidated statement of income

Fiscal year ended
March 31, 2015
(April 1, 2014March 31, 2015)
304,911
234,649
70,262

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 sales of securities
Loss on valuation of derivatives
Share issuance cost
Foreign exchange losses
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
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 14 -(Millions of yen)
Fiscal year ended
March 31, 2016
(April 1, 2015March 31, 2016)
240,302
193,02247,279

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

6,631
(115)
6,516
32,426
8,336

2,042
2,431
96

1,470
2,498
0

11,996

1,624

6,675
1,248
24,491

–
1,121
6,715

785
–
164
80
–

784
1
29
0
8,805

393

–

373
1,799
54,839778
10,399
4,652

0
40
1
42

82
–
–
82

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

121
3,098
5
3,225
1,508
3,633
2,755
6,388
(4,879)(6,970)2,090

Consolidated statement of comprehensive income
Fiscal year ended
March 31, 2015
(April 1, 2014March 31, 2015)(Millions of yen)
Fiscal year ended
March 31, 2016
(April 1, 2015March 31, 2016)

32,729(4,879)Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

1,313
58
9,985

(35,606)

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method

861(9,752)
(267)

202

(416)

12,42145,151(46,043)(50,923)

39,622(36,293)

5,529(14,630)

Profit (loss)
Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 15 -

0(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2015 (April 1, 2014 – March 31, 2015)(Millions of yen)
Shareholders’ equity
Capital stock

Retained earnings

Treasury shares

14,288318,433(10)

Balance at beginning of current
periodCumulative effects of changes inaccounting policies

Total shareholders’equity332,711

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)

Profit attributable to owners ofparent29,56729,567

Net changes of items other thanshareholders’ 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
Valuationdifference on
available-forsale
securities
Balance at beginning of current
period84,856

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

(56)

5,166

Remeasurements ofdefinedbenefit plans
(340)

Total
accumulated
othercomprehensive income
89,624Non-controllinginterests

Total net assets

74,579496,915

Cumulative effects of changes inaccounting policies
Restated balance

1,297
84,856

(56)

5,166

(340)

89,62474,579498,213

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

Profit attributable to owners ofparent29,567

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- 16 -

Fiscal year ended March 31, 2016 (April 1, 2015 – March 31, 2016)(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

14,288–Retained earnings

Treasury shares

346,441(10)

Total shareholders’equity360,719

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

Profit attributable to owners ofparent

2,090

2,090

Change in treasury shares ofparent arising from transactions
with non-controllingshareholders

157

157

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

–

157

(767)

–

(609)

14,288

157

345,674(10)

360,109

Non-controllinginterests

Total net assets

80,249540,647

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning of current
period86,174

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

312,980Remeasurements ofdefinedbenefit plans
521

Total
accumulated
othercomprehensive income
99,678Changes of items during period
Dividends of surplus(2,857)

Profit attributable to owners ofparent2,090

Change in treasury shares ofparent arising from transactions
with non-controllingshareholders

157

Net changes of items other thanshareholders’ equity(35,619)0(2,892)(267)(38,779)(5,941)(44,721)

Total changes of items during
period(35,619)0(2,892)(267)(38,779)(5,941)(45,330)

Balance at end of current period

50,554

3

10,087

253

60,89974,308495,317- 17 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2016
(April 1, 2015March 31, 2016)

Fiscal year ended
March 31, 2015
(April 1, 2014March 31, 2015)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Loss on retirement of property, plant and equipment
Loss (gain) on valuation of short-term and long-term
investment securities
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) 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
Foreign exchange losses (gains)
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 -

50,373
16,811
4,006
336

1,508
17,078
3,098
117

–

69

(1)

2

(617)
(164)

(324)
(422)

44

(786)

(967)

(469)

(4,473)785(4,553)(3,968)
784
8,110

(96)

1

(11,996)(1,624)33,66541,402

12,068609(1,222)

3,707(9,853)

847

420
1,428
85,994(7,327)78,666(82)(2,288)67,372(9,713)57,659(Millions of yen)
Fiscal year ended
March 31, 2016
(April 1, 2015March 31, 2016)

Fiscal year ended
March 31, 2015
(April 1, 2014March 31, 2015)
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
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
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Interest expenses paid
Repayments of lease obligations
Proceeds from share issuance to non-controllingshareholders
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 -(2,574)28,582(100)
938(86,756)
10
(877)
(507)
(1,497)

(660)
2,079
–
2,400
(92,953)
109
(720)
(829)
(360)

1,803

9

(1,063)(31,396)(26)
17,342
13,004
23
1,011
(947)
(63,031)(2,821)(42,958)
(24)
5,065
5,784
13
1,070
(974)
(125,771)

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

171,394(214,137)
103,711(10,392)(2,899)(2,156)

–

(398)

(791)
(557)

(689)
(619)

1,303

11,005

18,47554,816

5,716(2,791)

39,827
102,830
142,657(16,086)
142,657
126,570

5. Others
Status of production and sales
1. Production
Fiscal year ended March 31, 2015
(April 1, 2014 –March 31, 2015)

Fiscal year ended March 31, 2016
(April 1, 2015 –March 31, 2016)

1,990,143

1,908,080(1,601,853)(1,564,057)

1,302,003

1,331,251(436,841)(507,328)

1,000

2,202

332,757

306,432(332,757)(306,432)

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, 2015
(April 1, 2014 –March 31, 2015)
AmountVolume(Millions of yen)
Crude oil (kl)

2,064,266

121,240

2,926,653

98,023

1,710,779

83,974

1,780,537

68,469LNG (t)274,044

28,311

208,246

17,715

Bitumen (kl)332,342

12,105306,4364,894

3

Natural gas (thousand m )E&P

Subtotal

245,631

189,103

10,487

9,797

Oil products/merchandise

41,04032,609Others

7,751

8,792

Subtotal

48,792

41,401

Total

304,911240,302

Contract services
Otherbusinesses

Fiscal year ended March 31, 2016
(April 1, 2015 –March 31, 2016)
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 -