[Explanatory Material]

Financial Results
for the Nine Months Ended December 31, 2021

February 9, 2022

Japan Petroleum Exploration Co., Ltd.

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Contents
Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Nine Months Ended December 31, 2021
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2022

Note: This material also serves as the presentation material for the financial results briefing for the institutional investors and analysts to beheld on February 10, 2022.
Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

2

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Nine Months Ended December 31, 2021
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2022

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

3

Financial Highlights■ 1-3Q FY3/22 Results （Year-on-Year）(Billion Yen)

1-3Q FY3/21 (a)1-3Q FY3/22 (a)ChangeOperating profit

(4.4)

11.6

+16.0

-

Ordinary profit

(2.9)

24.5

+27.4

-

Profit attributable to owners of parent(3.7)(85.0)(81.2)-• Operating profit： E&P: Increase in profit of domestic sales and diluted bitumen sales due to a rise of crude oil prices• Extraordinary losses：
 43.6 bn. JPY of loss on transfer of interests of shale gas project in Canada, 94.3 bn. JPY of loss on sale of shares of subsidiaries ofoil sands project in Canada, 39.8 bn. JPY of gain on sale of investment securities■ FY3/22 Forecasts Revision （vs. Nov. 9 Forecasts）(Billion Yen)

Nov. 9, 2021 (f)Feb. 9, 2022 (f)ChangeOperating profit

16.6

16.1

(0.5)

(3%)

Ordinary profit

28.3

31.9

＋3.5

+13%

(69.8)(39.0)+30.8-

Profit attributable to owners of parent• Operating profit: E&P-domestic: Increase in sales price of crude oil due to a rise of crude oil prices
 E&P-domestic, I/U: Increase in the sales price of domestic natural gas and electricity due to soaring LNG spot prices and JLC price I/U: Increase in the cost by the procurement of an alternative LNG cargo in the spot market in response to the production
problems at an LNG supplier• Extraordinary income: 29.3 bn. JPY of gain on forgiveness of debts related to shale gas project in Canada to be recorded in 4Q
Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

4

Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Nine Months Ended December 31, 2021
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2022

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

5

E&P Business (Year-on-Year)
1-3Q FY3/21 (a)Net sales：Million Yen

Sales volume

Net sales

1-3Q FY3/22 (a)Sales volume

Net sales

ChangeSales volume

Net sales-

54,123-54,560

-

-

+437

+1%

1,447

38,122421

22,241(1,026)(71%)(15,881)

(42%)

211

5,990

218

11,073

+6

+3%

[1]

+5,083

+85%

204

5,225

184

10,158

(20)

(10%)

[2]

+4,932+94%

Purchased crude oil

1,032

26,90719

1,009[3] (1,012)(98%)(25,897)(96%)

Diluted bitumen*2

937

14,071

959

31,121+21+2%[4] +17,050

+121%

340

1,929

129

1,197

(211)

(62%)

(731)

(38%)

-

E&P Business
Breakdown
Crude oil
Crude oil - Japan
Crude oil - Overseas*1

Natural Gas - Overseas*3

Thousand KL

Million M3※Due to the trasfer of interest, overseas crude oil and natural gas sales related to JML

Main factors for change

are recorded for the three months from January to March 2021.

[1] Increase in sales price※Due to the sale of JACOS's shares, diluted bitumen sales are recorded for[2] Increase in sales price of crude oil from Garraf Oil Field in Iraq

the eight months from January to August 2021.

[3] Decrease in sales volume of purchased crude oil from SODECO
due to application of the “Accounting Standard for Revenue Recognition[4] Increase in sales price of diluted bitumen from the Hangingstone Lease in Canada*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd.,(JML) and Japex (U.S.) Corp.)

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6

I/U Business Sales (Year-on-Year)
1-3Q FY3/21 (a)Net sales：Million Yen

Sales volume

1-3Q FY3/22 (a)Net sales

Sales volume

ChangeNet sales

Sales volume-

67,691-

79,165813

36,658727

36,135

355

-

368

Ton

213

11,059Million kWh

2,080
-

-

Infrastructure & Utility BusinessNet sales--+11,473

+17%

(85)

(11%)

(522)

(1%)

-

+13

+4%

-

-

217

16,822+3+2%[2] +5,763+52%

16,6542,241

22,656[3] +160+8%+6,001

+36%

3,319

-

3,550

-

+231

+7%

Breakdown
Natural Gas - Japan- Produced in Japan

LNG
Electricity

Million M3
Thousand

Other*-[1]-Main factors for change[1]Decrease in sales volume due to application of the “Accounting Standard for Revenue Recognition”, decrease in sales volume related to the commissioning of
the Fukushima Natural Gas Power Plant in the FY3/21, and increase in sales price[2]Increase in sales price[3]Increase in sales volume of electricity due to the Fukushima Natural Gas Power Plant operation for the full reporting period, and increase in sales price* Including net sales from commissioned regasification of LNG

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

7

FY3/22 Results (Year-on-Year)
Million Yen

1-3Q FY3/21 (a)1-3Q FY3/22 (a)ChangeNet sales

150,099

171,364+21,264+14%

Gross profit

18,741

34,511+15,769+84%

Operating profit(4,448)

11,649+16,097-

Ordinary profit(2,948)24,533+27,482-

Profit attributable to owners of parent(3,776)(85,057)(81,280)-

Oil Price, Exchange Rate and Sales Price
1-3Q FY3/21 (a)1-3Q FY3/22 (a)ChangeWTI

USD/bbl

40.08

64.06

+23.98Crude oil price (CIF)

USD/bbl

40.35

70.28

+29.93

Exchange rate

JPY/USD

106.69109.96+3.27

USD/bbl

22.50

46.90

+24.40CAD/mcf

2.03

2.96

+0.93

JACOS Diluted bitumen
JML Natural gas＊1*2*1 Diluted bitumen sales price of Japan Canada Oil Sands Limited (Excl. Royalty)*2 Natural gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

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8

Operating Profit (Year-on-Year)(Billion Yen)
(4.4)

OP total

E&P-Overseas

E&P Business

11.6

Overseas : + 10.8 bn.

(8.9 bn.)(8.9)

Domestic : + 5.9 bn.

6.9 bn. →1.9

I/U Business

6.9
12.9

(0.0) bn.

2.0

•

1.9

(4.6)

Others(0.6 bn.)(5.0)

1-3Q FY3/21 (a)→1.9 bn.

Others *(5.2)(10.0)

2.0 bn.

Increase in sales volume of electricity due to the
Fukushima Natural Gas Power Plant operation for the fullreporting period
Absence of marginal gain on spot LNG procurement
incurred in FY21/3•
I/U

12.9 bn.

Increase in profit due to a rise of crude oil prices•

E&P-Japan→ 1.9 bn.

Improvement in diluted bitumen sales due to a rise of
crude oil prices

•

0.0

5.0

10.0

15.0

1-3Q FY3/22 (a)

•

∗

9

→

(5.2 bn.)

Operating income (contracting, oil products and commodities, andothers) not belonging to the above business units, less headquarters
administrative expenses* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

(4.6 bn.)

Decrease in profit of contract services and others

Analysis of Net Income change (Year-on-Year)(Billion Yen)

JACOS
Japex Garraf
JML+8.4 bn.
+1.2 bn.
+0.9 bn.

Japex Garraf
JAPEX+4.6 bn.
+4.3 bn.

SODECO+4.7 bn.

Losses on sale of JACOS' shares(94.3 bn.)
Losses on JML’s interests transfer(43.6 bn.)
Gain on sale of investment securities +39.8 bn.
Gain on sales of non-current assets+1.2 bn.

Net
incomeOperating profit*+16.0 bn.

FY3/21
1-3Q (a)E&Poverseas

E&P
Japan

I/U

FY3/21(a)
1-3Q

(8.9)

6.9

FY3/22(a)
1-3Q

1.9

12.9

Non-operating income+11.3 bn.
OthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

5.3

(0.1)

(0.0)

1.8

(1.0)

9.4

(1.6)

(97.1)

10.7

1.7

OthersForeignexchange
gains and loss

Equity on
earnings

2.0

(4.6)

(3.6)

1.9

(5.2)

5.1

* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
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10

Net
incomeFY3/22
1-3Q (a)Ⅰ. Financial Highlights
Ⅱ. Financial Results for the Nine Months Ended December 31, 2021
Ⅲ. Revised Financial Forecasts for the fiscal year ending March 31, 2022

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

11

E&P Business Sales Forecasts (vs Nov. 9 Forecasts)
Previous (f) Nov. 9, 2021
Net sales：Million Yen

Sales volume

Net sales

Revised (f) Feb. 9, 2022
Sales volume

ChangeSales volume

Net sales

Net sales-

72,690-66,469--(6,220)(9%)

Crude oil

816

40,393661

34,109

(154)

(19%)

(6,283)(16%)

Crude oil - Japan286

13,923288

14,578

+1

+1%

+654

+5%

505

25,261

348

18,247

(156)

(31%)

(7,013)

(28%)

24

1,208

25

1,284

+0

+2%

+75

+6%

959

31,121

959

31,121

-

-

-

-

129

1,175

130

1,237

+0

+0%

+62

+5%

-

E&P Business
Breakdown

Crude oil - overseas*1

Thousand KL

Purchased crude oil

Diluted bitumen*2
Natural Gas - Overseas*3

Million M3

Main factors for change[1] Decrease in sales volume of crude oil from Garraf Oil Field in Iraq

*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)

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12

[1]

I/U Business Sales Forecasts (vs Nov. 9 Forecasts)
Previous (f) Nov. 9, 2021
Net sales：Million Yen

Sales volume

Net sales

Revised (f) Feb. 9, 2022
Sales volume

ChangeNet sales

Sales volume

Net sales-

112,602-116,300--+3,697+3%

1,042

54,075

1,049

56,871+7+1%[1] +2,796

+5%

502

-

515

-

+12

+3%

-

-

Ton

293

22,397295

22,132

+1

+0%

(264)

(1%)

Million kWh

3,111

31,3703,000

32,391

(110)

(4%)

[2] +1,021

+3%

-

4,759

-

4,904

-

-

+144

+3%

-

Infrastructure & Utility Business

Breakdown
Natural Gas - Japan- Produced in Japan

Thousand

LNG
Electricity
OthersMillion M3*-

Main factors for change[1]-[2] Increase in sales price of natural gas (Japan) and electricity due to soaring LNG market price and JLC price* Including net sales from commissioned regasification of LNG

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13

FY3/22 Forecasts (vs Nov. 9 Forecasts)
Million Yen

Previous (f) Nov. 9, 2021

Revised (f) Feb. 9, 2022

ChangeNet sales

235,098

235,749+650+0%Gross profit

46,93546,498

(437)

(1%)

Operating profit

16,66916,168

(500)

(3%)

Ordinary profit

28,39031,972+3,581+13%(69,847)(39,029)+30,817-

Profit attributable to owners of parent

Oil Price, Exchange Rate and Sales PricePrevious (f) Nov. 9, 2021

Revised (f) Feb. 9, 2022

ChangeWTI

USD/bbl

64.06

64.06

-

Crude oil price (CIF)

USD/bbl

68.60

70.21

+1.61

Exchange rate

JPY/USD

108.60109.97+1.37

JACOS Diluted bitumen＊1

USD/bbl

46.90

46.90

-

CAD/mcf

2.96

2.96

-

JML Natural gas*2*1 Diluted bitumen sales price of Japan Canada Oil Sands Limited (Excl. Royalty)*2 Natural gas sales price of JAPEX Montney Ltd. (Excl. Royalty)
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14

Operating Profit (vs Nov. 9 Forecasts)
E&P Business(Billion Yen)

16.6

OP total

16.1

1.6 bn.

Domestic : +2.8 bn.

17.0 bn.

19.8 bn.

•

1.6

→

Increase in sales price of crude oil (Japan) due to a riseof crude oil prices
Increase in sales price* of natural gas (Japan) due to arise of JLC price∗Internal transaction price from E&P Business to I/U Business for theinternal control

17.0

E&P-Japan

19.8
4.7

I/U

Others

1.3 bn. →•1.3

E&P-Overseas

Overseas : +0.2 bn.

1.7

(6.4)

I/U Business(2.9 bn.)

1.7 bn.

•Increase in sales price of natural gas (Japan) andelectricity due to a rise of JLC price•

Increase in the cost due to an alternative LNG cargo
procurement in the LNG spot market(7.0)(10.0)

4.7 bn. →Others*(5.0)

0.0

Previous (f) Nov. 9, 2021

5.0

10.0

15.0

20.0

(0.5 bn.)∗

Revised (f) Feb. 9, 2022

15→

(7.0 bn.）

Operating income (contracting, oil products and commodities, andothers) not belonging to the above business units, less headquarters
administrative expenses* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
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(6.4 bn.)• Decrease in profit of contract services and others

Analysis of Net Income change (vs Nov. 9 Forecasts)(Billion Yen)

Losses on sale of JACOS‘ shares
Losses on JML’s interests transfer
Gain on JML’s forgiveness of debts(0.2 bn.)(2.0 bn.)+29.3 bn.

(39.0)(69.8)JAPEX
Japex Garraf
JML
CANOS

Net
incomeOperating profit*(0.5) bn.

+1.9 bn.
+1.3 bn.
(1.3 bn.)(0.6 bn.)

SODECO +3.4 bn.

Non-operating income
4.0 bn.
OthersExtraordinary
incomeIncometaxes

Profitattributable
to noncontrollinginterest

10.6

(1.5)

(96.0)

1.1

1.0

13.7

(1.9)

(68.9)

0.5

1.5

OthersForeignexchange
gains andloss

Equity on
earnings

4.7

(6.4)

2.6

1.7

(7.0)

3.9

FY3/22 (f)Nov. 9E&P
overseas

E&P
Japan

I/U

FY3/22 (f)Nov. 91.3

17.0

FY3/22 (f)Feb. 91.6

19.8* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
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16

Net
incomeFY3/22 (f)Feb. 9

E&P Business Sales Forecasts (Year-on-Year)
FY3/22 Revised (f)FY3/21 (a)Net sales：Million Yen

Sales volume

E&P BusinessNet sales

Sales volume

ChangeSales volume

Net sales

Net sales-

97,482-

66,469--(31,012)

(32%)

2,313

72,916661

34,109(1,651)(71%)(38,806)

(53%)

287

8,835

288

14,578+0+0%[1] +5,742

+65%

538

18,268348

18,247

(190)

(35%)

(21)

(0%)

1,486

45,81225

1,284[3] (1,461)(98%)(44,528)

(97%)

1,319

21,695959

31,121

(360)

(27%)

[4] +9,426

+43%

470

2,870

130

1,237

(340)

(72%)

(1,632)(57%)-

Breakdown
Crude oil
Crude oil - Japan
Crude oil - overseas*1

Thousand KL

Purchased crude oil*2

Diluted bitumen

Natural Gas - Overseas*3

Million M3

[2]

[5]

Main factors for change[1] Increase in sales price[2] Decrease in sales volume of crude oil from Garraf Oil Field in Iraq, increase in sales price[3] Decrease in sales volume of purchased crude oil from SODECO due to application of the “Accounting Standard for Revenue Recognition"[4] Increase in sales price of diluted bitumen at the Hangingstone Lease in Canada[5] Decrease in sales volume due to the interests transfer of the Canadian shale gas project*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)

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17

I/U Business Sales Forecasts (Year-on-Year)
FY3/22 Revised (f)FY3/21 (a)Net sales：Million Yen

Sales volume

Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales--+14,998

+15%

(133)

(11%)

+5,579+11%-

101,301-

116,300

1,183

51,291

1,049

56,871

528

-

515

-

(12)

(2%)

-

-

Ton

284

15,591

295

22,132+10+4%[2] +6,540+42%

Million kWh

3,016

30,0873,000

32,391(16)(1%)[3] +2,304

+8%

-

4,331

-

4,904

-

+573

+13%

-

Infrastructure & Utility Business

Breakdown
Natural Gas - Japan- Produced in Japan

Thousand

LNG
Electricity
OthersMillion M3

*

-

[1]

-

Main factors for change[1] Decrease in sales volume due to application of the “Accounting Standard for Revenue Recognition”, decrease in sales volume related to thecommissioning of the Fukushima Natural Gas Power Plant in the FY3/21, and increase in sales price[2]-[3] Increase in sales price* Including net sales from commissioned regasification of LNG

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18

FY3/22 Forecasts (Year-on-Year)
Million Yen

FY3/22 Revised (f)FY3/21 (a)ChangeNet sales

240,078

235,749(4,328)(2%)

Gross profit

36,53446,498+9,963+27%

Operating profit

4,192

16,168+11,975+286%

Ordinary profit

10,001

31,972+21,970+220%

Profit attributable to owners of parent(2,725)(39,029)(36,304)-

Oil Price, Exchange Rate and Sales Price
FY3/21 (a)FY3/22 Revised (f)ChangeWTI

USD/bbl

40.87

64.06

+23.19Crude oil price (CIF)

USD/bbl

42.91

70.21

+27.30Exchange rate

JPY/USD

105.86109.97+4.11

USD/bbl

25.06

46.90

+21.84

CAD/mcf

2.14

2.96

+0.82

JACOS Diluted bitumen
JML Natural gas＊1*2*1 Diluted bitumen sales price of Japan Canada Oil Sands Limited (Excl. Royalty)*2 Natural gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

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19

Operating Profit Forecasts (Year-on-Year)(Billion Yen)

4.1

OP total

E&P-Overseas

16.1

Overseas : +12.3 bn.

(10.7 bn.)→

1.6 bn.

Domestic : +11.3 bn.

8.4 bn.

→19.8 bn.

Improvement in diluted bitumen sales due to a rise of
crude oil prices and improvement in WCS differential•

Increase in sales price of crude oil due to a rise of crude oil
pricesIncrease in sales price* of natural gas produced in Japandue to a rise of JLC price•(10.7)
1.6

•

∗

8.4

E&P-Japan

Internal transaction price from E&P Business to Infrastructure/Utilities
Business for the internal control

19.8

I/U Business(10.5 bn.)

12.2

I/U

Others

E&P Business1.7

12.2 bn.

→

1.7 bn.

•

Reversal of transient gains due to the hike in the JEPX
spot market price incurred in FY3/21•

Increase in the cost due to an alternative LNG cargo
procurement in the LNG spot market

(5.7)
(7.0)

(15.0) (10.0) (5.0)

Others*0.0

FY3/21 (a)

5.0

10.0

15.0

20.0

25.0

(1.2 bn.)•∗

FY3/22 Revised (f)20→(7.0 bn.)

Operating income (contracting, oil products and commodities, andothers) not belonging to the above business units, less headquarters
administrative expenses* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

(5.7 bn.)

Decrease in profit of contract services and others

Analysis of Change in Net Income Forecasts (Year-on-Year)(Billion Yen)

SODECOJACOS
JML
Japex Garraf+8.7 bn.
+1.7 bn.
+1.5 bn.

Net
incomeLosses on JML’s interests transfer
Losses on sale of JACOS' shares（FY3/21）Impairment losses
Gain on sale of investment securities
Gain on JML’s forgiveness of debts

Operating profit*+11.9 bn.

+7.7 bn.

(44.7 bn.)
(94.3 bn.)
+16.3 bn.
+39.8 bn.
+29.3 bn.

Non-operating income+9.9 bn.
OthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

5.8

0.6(17.3)

(1.9)

(2.6)

13.7

(1.9)

(68.9)

0.5

1.5

OthersForeignexchange
gains and loss

Equity on
earnings

12.2

(5.7)

(0.6)

1.7

(7.0)

3.9

FY3/21 (a)E&Poverseas

E&P
Japan

I/U

FY3/21 (a)(10.7)

8.4

FY3/22
Revised (f)

1.6

19.8

* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
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21

Net
incomeFY3/22
Revised(f)Cash Flows and Debt
Million Yen

FY3/21 (a)FY3/22 (f)Full year

Full year
Nov.9

Cash flows from operating activities

Feb.9

43,263

20,9559,969

Depreciation

22,59917,667

17,776

Recovery of recoverable accounts

15,196

20,912

13,593

Cash flows from investing activities(6,453)50,40844,038Purchase of property, plant and equipment(15,153)(16,621)△16,434

Payments of recoverable accounts(14,971)(26,462)△26,630

Cash flows from financing activities(15,626)(70,265)△70,266

Cash and cash equivalents at end of period

157,963

159,061

141,704

Interest-bearing debt*1

118,71052,905

23,117

EBITDA*2

37,15050,41752,984

3.2

1.1

0.4

Debt-to-EBITDA ratio*1 Interest-bearing debt includes reimbursement obligations, lease obligations, retirement benefit liabilities and contingent liabilities*2 EBITDA is the total of operating profit, depreciation, interest and dividends received based on investment cash flow statement
Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

22

Appendix
1. Net Sales
2. Financial Results
3. Segment Profit
4. Price Assumptions for FY3/22 Forecasts
5. Sensitivities Analysis on FY3/22 Forecasts Basis
6. Main Business and Major Assets
7. IR Materials
8. Glossary

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

23

Appendix

1. Net Sales - E&P Business
FY3/21 (a)Million Yen

3Q

1-3Q

FY3/22 (a)Full year

1Q

2Q

FY3/22 (f)

3Q

1-3Q

4Q

Full year
Nov. 9

Sales
Sales volume of Crude oil (Thousand KL)
Net sales
Sales volume of Crude oil - Japan (Thousand KL)
Net sales

Feb. 916,57654,123

97,482

16,79633,024

4,739

54,56011,90972,69066,469

321

1,447

2,313

114

230

76

421

240

816

661

9,670

38,122

72,916

5,556

11,938

4,746

22,241

11,86840,393

34,109

72

211

287

85

69

63

218

70

286

288

2,263

5,990

8,835

3,927

3,537

3,607

11,073

3,504

13,923

14,578

Sales volume of Crude oil - overseas *1 (Thousand KL)

17

204

538

22

154

7

184

164

505

348

Net sales

524

5,225

18,268

1,312

8,045

800

10,1588,089

25,261

18,247

Sales volume of Purchased crude oil (Thousand KL)

231

1,032

1,486

6

6

5

19

5

24

25

6,882

26,90745,812

316

354

338

1,009

274

1,208

1,284

324

937

1,319

351

608

-

959

-

959

959

6,313

14,071

21,695

10,05821,063-31,121-

31,121

31,121

111

340

470

128

0

0

129

0

129

130

Net sales

592

1,929

2,870

1,181

22

(7)

1,197

40

1,175

1,237

WTI（USD/bbl）

41.02

40.08

40.87

58.10

66.07

69.85

64.06

-

64.38

64.06

Crude oil price (CIF) (USD/bbl) *4

44.51

40.35

42.91

64.25

71.31

77.30

70.28

70.00

68.28

70.21

Exchange rate (JPY/USD) *4

105.46106.69105.86108.43109.96111.69109.96110.00108.12109.97

Diluted bitumen *2 (USD/bbl)

29.77

22.50

25.06

40.99

49.75

51.26

46.90

-

46.84

46.90

JML natural gas *5 (CAD/mcf)

1.89

2.03

2.14

2.96

-

-

2.96

-

2.96

2.96

Net sales
Sales volume of Diluted bitumen (Thousand KL)
Net sales *2
Sales volume of Natural gas -overseas *3(Million M3)*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)*4 Domestic sales price average of crude oil referring to crude oil (CIF) price and its conversion exchange rate
*5 Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

24Appendix

1. Net Sales - I/U Business
FY3/21 (a)Million Yen

2Q

3Q

1-3Q

4Q

Full year
Nov. 9Feb. 9101,301

23,00923,37232,782

79,165

37,135

112,602116,300

813

1,183

233

222

271

727

322

1,042

1,049

11,59936,65851,291

10,70910,52914,89736,135

20,73654,07556,871

139

355

528

123

109

135

368

146

502

515

118

213

284

52

44

120

217

77

293

295

4,583

11,05915,591

4,397

3,788

8,636

16,822

5,309

22,397

22,132

806

2,080

3,016

765

840

635

2,241

759

3,111

3,000

Net sales

6,612

16,65430,087

7,163

7,834

7,658

22,656

9,735

31,37032,391Others*

914

3,319

4,331

739

1,220

1,590

3,550

1,354

4,759

4,904

Sales volume of Natural gas – Japan (Million M3)
Net sales
Sales volume of Natural gas produced in Japan (Million M3)
Sales volume of LNG (Thousand ton)
Net sales
Sales volume of Electricity (Million kWh)

1-3Q

23,70967,691

292

Full year

FY3/22 (f)

1Q

Sales

3Q

FY3/22 (a)* Including the revenue from contracted transportation of natural gas and commissioned regasification of LNG

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

25

Appendix

2. Financial Results
Million Yen

FY3/21 (a)3Q

Net sales

1-3Q

FY3/22 (a)Full year

1Q

2Q

3Q

240,078

50,08368,424

54,123

97,482

16,796

67,691

101,301

23,00951,972150,099

E&P Business

16,576

Infrastructure/Utility Business

23,709OthersFY3/22 (f)
1-3Q

4Q

Full year
Nov. 9Feb. 9235,098

235,749

52,856

171,364

64,38433,024

4,739

54,56011,90972,69066,46923,37232,782

79,165

37,135

112,602116,300

11,68728,284

41,294

10,277

12,026

15,334

37,63815,34049,804

52,978

Cost of sales

42,116

131,358

203,543

38,90453,81844,130136,853

52,397

188,163

189,251

Gross profit

9,856

18,74136,534

11,17914,605

8,726

34,511

11,986

46,93546,498

319

706

989

132

120

101

353

64

474

418

Exploration expenses
SG&A expenses

7,713

22,48331,352

7,647

8,344

6,516

22,508

7,402

29,791

29,910Operating profit

1,823(4,448)

4,192

3,400

6,140

2,108

11,6494,519

16,66916,168Non-operation income

2,065

1,499

5,809

7,091

2,718

3,075

12,884

2,919

11,72115,803

36

371

412

37

50

76

164

67

220

231

Interest expenses(379)(2,162)(2,529)

(322)

(982)

59

(1,246)(12)(1,297)(1,258)Dividend income

107

1,439

2,823

48

2,138

68

2,255

1,072

3,393

3,327

1,945

5,312

5,808

3,549

2,921

2,995

9,466

4,264

10,61913,730Interest income

Share of profit of entities accounted forusing equity method
Provision for overseas investment

85

256

342

92

85

85

263

(10)

253

253

Foreign exchange gains and loss

319

(3,652)

(639)

3,851

89

1,158

5,100

(1,112)

2,668

3,987

Other

(49)

(66)

(408)

(165)

(1,584)(1,368)(3,118)(1,349)(4,135)(4,468)3,889(2,948)10,001

10,491

8,858

5,183

24,533

7,438

28,39031,972(6)(21)(17,324)(1)(138,663)

41,526(97,138)

28,205(96,004)(68,933)

Profit before income taxes

3,882(2,970)(7,322)

10,489(129,805)

46,710(72,604)

35,643(67,613)(36,961)

Income taxes

1,223

1,860

(1,923)

2,832(3,316)

11,227

10,743(10,175)

1,170

567

Ordinary profit
Extraordinary income

Profit attributable to non-controlling interests(539)(1,054)(2,673)

550

294

864

1,708

(207)

1,063

1,500

Profit attributable to owners of parent

3,198(3,776)(2,725)

7,106(126,782)

34,619(85,057)

46,027(69,847)(39,029)

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

26

Appendix

3. Segment Profit
Million Yen

FY3/21(a)3Q

FY3/22 (a)1-3Q

Full year

1Q

2Q

FY3/22 (f)
3Q

1-3Q

4Q

Full year
Nov. 9Operating profit

Japan

Share of profit (loss) of entities
accounted for using equity
methodOperating profit (loss)

North America

4,426

9,775

21,988

6,122

4,811

4,223

15,158

7,024

22,54722,182

351

536

(319)

19

103

(73)

49

17

32

66

(554)

(8,046)(9,374)(1,146)

2,883

(34)

1,702

41

1,631

1,743

-

-

-

-

-

-

-

-

-

-

(35)

(97)

(132)

(47)

(34)

(27)

(108)

(43)

(173)

(152)

-

-

-

-

-

-

-

-

-

-

23

241

165

537

676

243

1,457

263

1,645

1,720

(2)

(5)

(10)

(3)

(2)

(2)

(8)

(5)

(14)

(14)

-

-

-

-

-

-

-

-

-

-

1,596

4,781

6,138

3,534

2,820

3,071

9,425

4,252

10,601

13,678(2,037)(6,320)(8,453)(2,066)(2,198)(2,296)(6,560)(2,766)(8,982)(9,326)

1,823(4,448)

4,192

3,400

6,140

2,108

11,6494,519

16,66916,168

Share of profit of entities
accounted for using equity
methodOperating loss

EuropeShare of profit of entities
accounted for using equity
methodOperating profit

Middle East

Share of loss of entities
accounted for using equity
methodOperating profit

Others*1

Share of profit of entities
accounted for using equity
methodAdjustments andEliminations*2
Amounts on consolidated
statement of income *3

*1
*2
*3

Operating profit (loss)

Feb. 9Include the Sakhalin Oil and Gas Development Co., Ltd., Energi Mega Pratama Inc., and others
Mainly intersegment elimination and corporate expense.
Furthermore, Corporate expense represents mainly general and administrative expenses and experiment and research expense that are not allocated to reporting segments.
Segment profit (loss) is reconciled to operating profit in the consolidated statements of income.

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

27

Appendix

4. Price Assumptions for FY3/22 Forecasts
Upper: from January 2020 to March 2021
Full year

Lower: from January 2021 to March 2022
Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

FY3/21 (a)

45.10

28.54

41.02

42.77

-

40.87

FY3/22 (f)58.10*1

66.07*1

69.85*1

-

-

64.06

FY3/21(a)

-

44.41

33.34

44.51

49.99

42.91

FY3/22 (f)-64.25*1

71.31*1

77.30*1

70.00

70.21

FY3/21(a)-108.04106.88105.46104.03105.86

FY3/22 (f)-108.43*1

109.96*1

111.69*1

110.00109.97

FY3/21(a)

22.30

11.29

29.77

31.25

-

25.06

FY3/22 (f)40.99*149.75*1

51.26*1

-

-

46.90

FY3/21(a)

2.36

1.85

1.89

2.43

-

2.14

FY3/22 (f)2.96*1

-

-

-

-

2.96

Market Price
WTI

USD/bblCrude oil price (CIF) *2

USD/bblExchange rate*2

JPY/USD

Sales Price
JACOS
Diluted bitumen*3

JML
Natural gas*4

USD/bbl

CAD/mcf*1 Actuals*2 Domestic sales price average of crude oil referring to crude oil (CIF) price and its conversion exchange rate
*3 Diluted bitumen sales price of Japan Canada Oil Sands Limited (Excl. Royalty)*4 Natural Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)
Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

28

Appendix

5. Sensitivities Analysis on FY3/22 Forecasts Basis
Impacts on profit（Million Yen）

FY3/22
4Q
Assumptions

Fluctuation

Crude oil price

Crude oil price(CIF)
USD 70.00/bbl

Exchange rate

JPY 110.00/USD

Main factors for change
positive factor “+”/ negative factor “( )”Operating profit

Profitattributable toowners of parent

Increase by
1USD/bbl

30

20+ Sales of oil and gas(Increase in LNG procurement cost)

1 weaker JPY
against USD

30

5+ Sales of oil and gas(Increase in LNG procurement cost)【Assumptions】• Changes in equity method investment gain are not included in the above amount.
• In addition to the impact of exchange rate fluctuations shown on the above, translation adjustments of foreign-currencydenominated receivables and payables also may occur.
• Actual profits are influenced by various other factors besides crude oil prices and exchange rates.

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

29

Appendix

6. Overview: E&P Business (Japan/Overseas)
Updates on 3Q and afterJapan：Established Carbon Reduction Project Office in Domestic E&P Project Division to strengthen carbon-neutral
measures in domestic oil and gas fields in October
United States：Acquired additional tight oil assets in January
Current Status



Japan: Producing oil and natural gas at a total of 10 fields in Hokkaido, Akita, Yamagata and Niigata Prefectures /Considering the measures to increase production at existing oil and gas fields••

Conducting an additional development at Katakai oil and gas field in Niigata
Studying measures to reduce GHG emissions from oil and gas field operations to achieve carbon-neutral, as well as investigating
CO2 storage capacity.

Overseas: Participating in the projects of crude oil and natural gas development and production / Considering acquisitionof new assets and interests[Major overseas E&P projects]
Segment

EuropeMiddleEast
OthersOthers

Project Title (operator)

UK North Sea: Seagull Project(Neptune E&P UK Limited)

Iraq: Garraff Project(PETRONAS Carigali Iraq Holding B.V.)

Indonesia: Kangean Project(Kangean Energy Indonesia Ltd.)

Russia: Sakhalin 1 Project(Exxon Neftegas Ltd.)Interest（JAPEX net）

StatusGross Production volume

JAPEX UK E&P Ltd.(100％)15% (15％)

Development*1-

Japex Garraf Ltd. (55％)

30% (16.5%)

Production/
Development*2

Approx. 80,000bbl/d*3

Energi Mega Pratama Inc.(25％)

100％ (25%)

Production

Sakhalin Oil and Gas Development
Co., Ltd.(15.29％)

30% (4.59%)

Production/
Development

Project company（JAPEX‘s share）*1：Production commencement is scheduled at early 2023.
*2：The timing of achieving production target of 230,000 bbl/d is unforeseeable due to Covid-19 pandemic situation and other factors.
*3：Average of Jan-Dec 2021, due to the change in consolidated interim period
Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

30(Average of Jan-Sep 2021)

4,690,000m3/d
Approx. 29,000 boe/dUndisclosed

Appendix

6. Overview: I/U Business（Gas Supply and Electricity）
Updates on 3Q and afterIncorporated the first project of PHOTON Sustainable PV Investment Limited Partnership, in December
Participated in the Northern Vietnam LNG terminal project, in January

Current Status

Gas Supply: Stable supply of natural gas and LNG through our domestic gas supply network / Expanding gas sales volume including
in response to demands for fuel conversion- Soma LNG terminal in Fukushima Prefecture: Engaging the contract work of LNG vaporization and delivery of power generation fuel to theadjacent Fukushima natural gas power plant

Overseas LNG Mid-to-downstream projects：Considering participation in projects to develop and operate supply infrastructure suchas LNG terminals, mainly in Southeast Asia, where the demand for natural gas is expected to grow.
Electricity: Stable supply of electricity with lower environmental impact generated by the power plants in operation /Participating in
renewable energy development and investment projects and considering new projects【Power plants in which we participate】
Type
Natural gas fired
Renewable Energy - Solar
Renewable Energy - Solar
Renewable Energy -Biomass
Renewable Energy -Biomass

Power plant (operator)
Fukushima Natural Gas Power Plant（Fukushima Gas Power Co., Ltd.）
Mega solar power generation
at Japex Hokkaido District Office
Yufutsu Solar Power Plant（Solar Power Tomakomai Co., Ltd.）
Chofu Biomass Power Plant（Chofu Bio-Power LLC）
Abashiri Biomass 2nd/ 3rd Power Plant（Abashiri Biomass 2nd/ 3rd Power Plant LLC.）

Share

Location

Capacity

Status33%

Shinchi Town, Soma County,
Fukushima

1,180,000kW

In operation

100%

Tomakomai City, Hokkaido

1,800kW

In operation

20%

Tomakomai City, Hokkaido

13,000kW

In operation

39.9%

Shimonoseki City, Yamaguchi

94.3%

Abashiri City, Hokkaido

74,950kW
In development（to be determined）
total of 19,800kW
In development（to be determined）【Participation in renewable energy investment funds】
 PHOTON sustainable PV investment limited partnership(Established in September 2021 to invest in PV power projects in Japan across the development andoperation phases, with a 5-year investment period and a 15-year operational period.)【Power projects under consideration and participation】
 Consortium to study large-scale offshore wind power：Akita Central Offshore Wind Power Generation Project, Offshore Wind Power Generation Project off Yuza Town

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

31

Appendix

6. Overview: New Business (Creation of environmentally friendly businesses）
Updates on 3Q and after

Agreed with PETRONAS on a CCS joint study in Malaysia, in January
Current Status

Studying for early practical application and commercialization of CCS (Carbon Dioxide Capture and Storage)/CCUS(Carbon Dioxide Capture, Utilization, and Storage)Considering collaboration and participation in carbon neutral businesses, with the potential for collaboration with
CCS/CCUS• Consideration of regional and inter-industrial collaboration in combination with CCS/CCUS, such as the realization of carbon
recycling[Ongoing demonstration tests and study projects] Demonstration test in progress• Large-scale CCS demonstration test in Tomakomai City (JAPEX has invested and served technical supports for the operator,
Japan CCS Co., Ltd.) Business feasibility study and review in progress(domestic)• Feasibility study on a carbon recycling project with the sector-coupling in Tomakomai• Feasibility study on CO2-IOR at the Higashi-Niigata gas field (Joint study with Mitsubishi Gas Chemical Company, Inc., basedon the collaboration with CO2 emitted from their Niigata Plant)• Joint technical study with JFE Engineering Co., Ltd. on CO2 transport and supply infrastructure Business feasibility study and review in progress(overseas)• Joint study on feasibility evaluation of CCUS project using Joint Crediting Mechanism at Sukowati oil field, Indonesia (withPertamina and LEMIGAS)• CCS joint study in Malaysia (with PETRONAS)

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

32

Appendix

7. IR Materials
Please visit our website for the integrated report and IR materials.

 Integrated Report2021

 IR Materials
IR Libraryhttps://www.japex.co.jp/ir/uploads/JAPEX_IR2021_e.pdf

https://www.japex.co.jp/en/ir/library/•

Financial Results•

Explanatory Materials

https://www.japex.co.jp/en/ir/library/result/https://www.japex.co.jp/en/ir/library/explanatory/

 Financial Information
https://www.japex.co.jp/en/ir/figure/•

10-year performance and financial data
(Excel format)

https://www.japex.co.jp/ir/uploads/JAPEX_10yearF
inancialData_e.xlsx

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

33

Appendix

8. Glossary■Abbreviations
BOE(D)

Barrels of Oil Equivalent (per Day)

CCS

Carbon dioxide Capture and Storage

CCUS

Carbon dioxide Capture, Utilization and Storage

CIF

Cost, Insurance and Freight

FID

Final Investment Decision

GHG

Greenhouse Gas

HSE

Health, Safety and Environment

JCC

Japan Crude Cocktail

MH

Methane Hydrate

RRR

Reserve Replacement Ratio

WTIWest Texas Intermediate■Main Subsidiaries and Affiliates
JACOS*

Japan Canada Oil Sands Limited

Canada / Oil Sands Project

JML

JAPEX Montney Ltd.

Canada / Shale Gas Project

Japex Garraf

Japex Garraf Ltd.

Iraq / Garraf Project

EMPI

Energi Mega Pratama Inc.

Indonesia / Kangean Project

SODECO

Sakhalin Oil & Gas Development Co., Ltd.

Russia / Sakhalin-1 Project

DGN

Diamond Gas Netherlands B.V.

Malaysia LNG Project 3（Tiga）

FGP

Fukushima Gas Power Co., Ltd.

Natural gas-fired electric power generation BusinessNote: *JACOS has been excluded from the scope of consolidation, as all shares held by the Group were sold during the second quarter of FY3/22.
Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

34

Cautionary Statement
This document contains future outlooks such as plans, forecasts, strategies, and others which are not historical fact andthese are made by the management’s judgement based on the obtainable information at the time of the disclosure.
Actual results may significantly differ from those future outlooks due to various factors.
This document is not intended to invite investment.
Copyright: All information contained herein is protected by copyright, and may not be copied or reproduced without priorconsent of JAPEX.

Note:・Abbreviations used herein are as follows:(a) = Actual results(f) = Forecasts
FY = Fiscal Year (FY3/22, for instance, means 12 months ending March 31, 2022)
・Figures in parentheses in "Operating profit," "Ordinary profit," " Share of profit of entities accounted for using equity
method," and " Profit attributable to owners of parent" represent losses in each category.
Any inquiries about the information contained herein or other Investor Relations questions are requested to be directed to:
Corporate Communication Office, Japan Petroleum Exploration Co., Ltd. (JAPEX)Tokyo, JAPAN TEL: +81-3-6268-7111

Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved.

35