Note: The following is an English translation of the Japanese-language original

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February 10, 2023

Japan Petroleum Exploration Co., Ltd. (JAPEX)
1662 (Prime Market of the Tokyo Stock Exchange)
FUJITA Masahiro, Representative Director and President
Corporate Communication Office+81-3-6268-7110

Notice of Financial Forecasts Revision, Year-end Dividend Forecast Revision andRecording of Non-operating Expenses and Non-operating Income
Japan Petroleum Exploration Co., Ltd. (JAPEX) hereby revised its consolidated financial forecasts andyear-end dividend forecasts for the fiscal year ending March 31, 2023, which was disclosed on November 10,2022, based on our recent business trends and performance. Also, we have recorded non-operating expenses
and non-operating income in the third quarter of the fiscal year ending March 31, 2023, which is from October
1, 2022 to December 31, 2022.
1. Financial Forecasts Revision(1) Revision to financial consolidated forecasts for FY2023/3 (April 1, 2022 - March 31, 2023)
ProfitNet sales
Operating
Ordinary
attributableprofitprofitto owners ofparent
Previous forecasts (A)Revised forecasts (B)Difference in amount (B - A)
Rate of change (%)(Reference) FY 2022/3(Millions of yen)

304,563326,679
22,116
7.3
249,140(Millions of yen)

45,242
61,25016,00835.4
19,809(Millions of yen)

66,951
78,96412,01317.9
43,674

Note: FY=Fiscal Year (FY2023/3, for instance, means 12 months ending March 31, 2023)(Millions of yen)

53,00060,0007,000
13.2(30,988)

Net income
per share(Yen)972.52
1,100.97(545.64)(2) Reasons of revision
Compared to the previous forecast disclosed on November 10, 2022, net sales, operating profit, ordinaryprofit and profit attributable to owners of the parent are expected to increase, mainly due to the rising sales
prices of natural gas and electricity resulting from soaring LNG spot prices.
(3) Reference:[Crude Oil Price (CIF)]
Previous

Revised(USD/bbl)

Apr. 2022 to Sep. 2022 (average of actual)107.25 Apr. 2022 to Dec. 2022 (average of actual)

106.81

Oct. 2022 to Mar. 2023 (forecast)

80.00 January to March 2023 (forecast)

70.00[Exchange Rate]
Previous
Apr. 2022 to Sep. 2022 (average of actual)Oct. 2022 to Mar. 2023 (forecast)

Revised127.44 Apr. 2022 to Dec. 2022 (average of actual)130.00 January to March 2023 (forecast)
1/3(JPY/USD)
132.69130.00Note) The aforementioned forecasts are based on the current available information and the actual performances and other results
may differ materially due to various factors in the future.

2. Revision of Year-end Dividend Forecast(1) Revision of Year-end Dividend Forecast

Dividend per Share (Yen)
2nd quarter-end

Previous forecasts (on November 10, 2022)
Revised forecasts

150.0025.00

Actual dividends for FY2023/3
Actual dividends for FY2022/3-Year-end

150.00180.00
25.00

Annual total-300.00
330.0050.00-(2) Reasons of revision
Our basic policy for profit distribution is to pay dividends in line with business results for each fiscal year,with a target consolidated dividend payout ratio of 30%. Based on this policy, we have revised our year-end
dividends forecast to be increased to 180 yen per share, resulting in annual total dividends forecasted to be
330 yen, in conjunction with the revision of the consolidated financial forecasts for the fiscal year ending
March 31, 2023 which was disclosed today.

3. Recording of Non-operating Expenses and Non-operating Income(1) Foreign exchange losses
In the third quarter of the fiscal year ending March 31, 2023, foreign exchange losses of 4,312 million yen
were recorded as a non-operating expense. This was mainly due to the revaluation of foreign currencydenominated assets and liabilities held by the JAPEX Group, revaluated by the exchange rate at the end of
the quarter.
Since foreign exchange gains of 9,176 million yen were recorded as non-operating income for six months
ended in September 30, 2022, foreign exchange gains for nine months ended in December 31, 2022 amounted
to 4,864 million yen.
(2) Gain on derivatives
In the second quarter of the fiscal year ending March 31, 2023, we recorded 6,446 million yen as a gain on
valuation of derivatives under non-operating income, based on the mark-to-market valuation of book-outtransactions related to LNG conducted during the same period. In the third quarter of the same period, werecorded 6,082 million yen as a gain on derivatives in non-operating income (a decrease of 363 million yen
from the second quarter of the same period) instead of a gain on valuation of derivatives, since the gain wasdetermined at the time of settlement of the transaction.

< Previous Announcement Link>・“Notice of Financial Forecasts Revision, Recording of Non-operating Income, Interim Dividend Payout, andDividend Forecast Revision”on November 10, 2022

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