Consolidated Financial Results for the Fiscal Year Ended March 31, 2017
<under Japanese GAAP>May 12, 2017
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:
Hideichi Okada
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 28, 2017
Scheduled date to commence dividend payments:
June 29, 2017
Scheduled date to file Securities Report:
June 28, 2017
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, 2017
(April 1, 2016 – March 31, 2017)
Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ended

Millions of yen

Operating profit% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen%

March 31, 2017

207,130 (13.8)

685(91.8)

2,222(52.2)

3,443

64.7

March 31, 2016

240,302 (21.2)

8,336(74.1)

4,652(91.5)

2,090(92.9)

Note: Comprehensive income:

FY2017/3: 14,191 million yen (– %)FY2016/3: (50,923) million yen (– %)Basic earnings per
share

Diluted earnings
per share

Return on equity

Ratio ofordinary profit tototal assets

Ratio ofoperating profit tosales

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2017

60.24

–

0.8

0.3

0.3

March 31, 2016

36.58

–

0.5

0.6

3.5

Reference: Equity in earnings (losses) of affiliates: FY2017/3: (4,255) million yen(2)

FY2016/3: 1,624 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, 2017746,739

510,60958.6

7,655.26

As of March 31, 2016

707,601495,31759.5

7,366.40

Reference: Equity

As of March 31, 2017: 437,518 million yen

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

-1-

(3)

Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodFiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2017

43,672(84,686)

18,360103,630

March 31, 2016

57,659(125,771)

54,816

126,570

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, 2016

–

25.00

–

25.00

50.00

2,857

136.7

0.6

Fiscal year ended
March 31, 2017

–

5.00

–

10.00

15.00

857

24.9

0.2

Fiscal year ending
March 31, 2018
(Forecast)

–

10.00

–

10.00

20.00

3.

20.5

Consolidated financial forecasts for the fiscal year ending March 31, 2018 (April 1, 2017 – March 31, 2018)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2018

Operating profit

Ordinary profit

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

214,878

3.7

2,988

336.2

5,424

144.1

5,564

61.6

97.36

Note: As the Group principally manages its operations on an annual basis, consolidated financial forecasts for the first six months are omitted
from the fiscal year ending March 31, 2018.

*
(1)

Notes
Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in the change in scope of consolidation): Yes
Exclusion: one company (Japex Philippines Ltd.)(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, 201757,154,776 shares
As of March 31, 201657,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2017
2,139 shares
As of March 31, 2016
2,139 sharesc. Average number of shares during the period
Fiscal year ended March 31, 201757,152,637 sharesFiscal year ended March 31, 201657,152,637 shares-2-Reference: Summary of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2017
(April 1, 2016 – March 31, 2017)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Fiscal year ended

Operating profit

Millions of yen% Millions of yen

Ordinary profit

Profit% Millions of yen% Millions of yen%

March 31, 2017

150,137 (17.2)

7,938(33.0)

16,473

4.5

15,063

46.1

March 31, 2016

181,378 (20.2)

11,845(40.7)

15,764(40.6)

10,310(48.7)

Basic earnings per share

Diluted earnings per
share

Fiscal year ended

Yen

Yen

March 31, 2017263.57–

March 31, 2016180.41–(2)

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, 2017

493,018

397,94180.7

6,962.79

As of March 31, 2016

449,679

365,28881.2

6,391.46

Reference: Equity

As of March 31, 2017: 397,941 million yen

As of March 31, 2016: 365,288 million yen* Financial results reports are not required to be audited.
* 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 “(4) Future outlook” of “1. Overview of operating results and others” on pages 7of the attached material to the financial results report.
(Method of accessing supplementary material on financial results)
On May 12, 2017 (Friday), 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 15,2017 (Monday). JAPEX plans to post the material distributed at this presentation meeting on its website
promptly after the meeting is held.

-3-

(Attached Material)
1. Overview of operating results and others(1) Overview of operating results for the fiscal year under review
In the fiscal year ended March 31, 2017, the Japanese economy continued with a moderate tone of recovery
owing to a recovery in exports and production during the second half of the fiscal year despite the economy
weakened due to a global economic slowdown and other factors as the economies of emerging countries in
Asia and resource-producing countries slowed down during the first half of the fiscal year.
The Japan Crude Cocktail (JCC) price started the fiscal year in the high end of the $30 range per barrel,
recovering gradually to the mid-$50 level by February 2017 due to an agreement to reduce production among
OPEC countries in November 2016, then remaining at that level through to the end of the fiscal year.
In the currency exchange market, the trend of yen appreciation that began in the second half of the previous
fiscal year continued through the fiscal year under review. Against the US dollar, the yen appreciated fromthe lower ¥110 range at the start of the fiscal year to the lower ¥100 range in September, when it began
declining down to the upper ¥110 range in January before turning upward again to remain around the lower¥110 level through to the end of the fiscal year. As a result, the JAPEX Group’s JCC price declined slightly
as an average for the fiscal year compared to the previous fiscal year.
On the other hand, natural gas struggled to achieve a competitive advantage compared with competing energy
sources as the price of petroleum products, etc. declined due to falling JCC prices. In addition, there wereefforts to promote project on natural gas infrastructures such as LNG receiving terminals and related pipelines
by other companies. As a result, the JAPEX Group faced a severe market environment on natural gas.
Under such circumstances, the JAPEX Group endeavored to secure production and transportation, andfocused on efficient E&P toward achieving a stable, long-term supply of energy essential for daily life.
During the fiscal year, net sales was at ¥207,130 million, a decrease of ¥33,171 million (-13.8%) year on year,and gross profit was at ¥32,172 million, a decrease of ¥15,107 million (-32.0%) year on year. The main
factors behind the year-on-year decreases in net sales and gross profit were decrease in sales volume of crude
oil and domestically produced natural gas, and falls in sales prices.
Exploration expenses was ¥1,512 million, a decrease of ¥5,003 million (-76.8%) year on year. This was
mainly the result of a considerable decrease of expenditures in Japan and overseas. Selling, general andadministrative expenses was ¥29,975 million, a decrease of ¥2,451 million (-7.6%) year on year. As a result,operating profit was ¥685 million, a decrease of ¥7,651 million (-91.8%) year on year.
Ordinary profit was ¥2,222 million, a decrease of ¥2,429 million (-52.2%) year on year. The result mainlyreflected the negative factor to turn from share of profit of entities accounted for using equity method
recorded in the previous fiscal year changing to share of loss of entities accounted for using equity method in
the fiscal year due to recording impairment loss at the equity-method affiliate Japan Drilling Co., Ltd.
However, the impact was partially offset by a decrease in the decline in operating profit, mainly due to aturnaround from foreign exchange losses in the previous fiscal year to foreign exchange gains in the fiscal
year.
Profit before income taxes was ¥3,192 million, an increase of ¥1,683 million (+111.6%) year on year. This ismainly due to a decrease in impairment loss and the recognition of gain on sales of non-current assets.
Profit attributable to owners of parent was at ¥3,443 million, an increase of ¥1,352 million (+64.7%) 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 ¥157,706 million, adecrease of ¥31,396 million (-16.6%) year on year. This was mainly the result of a decrease in sales
volume and fall in sales price.
(ii) Contract Services
Net sales from contract services (involved in drilling and geological surveys) came to ¥10,354 million, an
increase of ¥557 million (+5.7%) 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¥39,069 million, a decrease of ¥2,332 million (-5.6%) year on year.
Below is a summary of performance by segment (before elimination of intersegment transactions).
(1) Japan
Net sales in 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 ¥199,505 million, a decrease of¥28,868 million (-12.6%) year on year, due mainly to a fall in sales volume of crude oil and natural gas, and afall of sales price. Segment profit decreased by ¥4,445 million (-17.8%) year on year to ¥20,525 million. Thiswas mainly due to the above-mentioned decrease in net sales, despite a decrease in exploration expenses andselling, general and administrative expenses.
(2) North America
Net sales in the North America segment is mainly composed of E&P (including bitumen). Net sales came to¥5,688 million, a decrease of ¥4,320 million (-43.2%) year on year due mainly to a decrease in sales volume
of bitumen caused by the temporary suspension of the production operation of Japan Canada Oil Sands
Limited (hereinafter “JACOS”). There was segment loss of ¥8,620 million (compared to segment loss of¥6,812 million in the previous fiscal year) despite a decrease of operating costs associated with the temporary
suspension of the production operation of JACOS and others.
(3) Europe
In the Europe segment, we have been conducting exploration activities in the UK North Sea block locatedoffshore of Aberdeen. There was segment loss of ¥268 million (compared to segment loss of ¥3,905 million
in the previous fiscal year) as a result of a decrease in exploration expenses and others.
(4) Middle East
Net sales from the Middle East segment is mainly composed of crude oil. Net sales came to ¥27,179 million,a decrease of ¥19,337 million (-41.6%) year on year, due mainly to a decrease in sales volume and a fall insales price. Segment loss came to ¥1,120 million (compared to segment profit of ¥4,486 million in theprevious fiscal year). This was mainly due to the above-mentioned decrease in net sales, despite a decrease incost of sales.

-5-(2) Overview of financial position for the fiscal year under review
Total assets at the end of this fiscal year increased by ¥39,137 million from the previous fiscal year-end to¥746,739 million.
Current assets decreased by ¥12,278 million from the previous fiscal year-end to ¥161,359 million, mainly
due to a decrease in securities of ¥22,248 million despite an increase in cash and deposits of ¥5,129 million
and an increase in short-term loans receivable of ¥4,319 million.
Non-current assets increased by ¥51,416 million to ¥585,380 million, mainly due to increases of constructionin progress of ¥38,564 million and investment securities of ¥12,975 million.
Total liabilities increased by ¥23,845 million from the previous fiscal year-end to ¥236,129 million.
Current liabilities increased by ¥5,621 million from the previous fiscal year-end to ¥37,911 million, mainly
due to an increase in notes and accounts payable - trade of ¥5,048 million and others.
Non-current liabilities increased by ¥18,223 million to ¥198,218 million, mainly due to increases in long-termloans payable of ¥11,873 million and deferred tax liabilities of ¥5,229 million.
Total net assets increased by ¥15,292 million from the previous fiscal year-end to ¥510,609 million.
Shareholders’ equity increased by ¥45 million from the previous fiscal year-end to ¥360,155 million.
Accumulated other comprehensive income increased by ¥16,463 million to ¥77,363 million, mainly due to anincrease in valuation difference on available-for-sale securities of ¥19,277 million despite a decrease inforeign currency translation adjustment of ¥2,786 million.
Non-controlling interests decreased by ¥1,216 million to ¥73,091 million.

(3) Overview of cash flows for the fiscal year under review
As of March 31, 2017, cash and cash equivalents (hereinafter “net cash”) decreased by ¥22,940 million
compared to the end of the previous fiscal year to ¥103,630 million. Below is a summary of cash flows foreach activity.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥43,672 million. The main factors were ¥26,437
million in recovery of recoverable accounts, ¥15,690 million in depreciation, ¥4,255 million in share of lossof entities accounted for using equity method, and increase in notes and accounts receivable - trade of ¥3,648
million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥84,686 million. Net cash was mainly used in purchase ofproperty, plant and equipment of ¥70,250 million and payments of recoverable accounts of ¥21,380 million,
while net cash was mainly provided by interest and dividend income received of ¥5,511 million and proceedsfrom capital reduction of investments of ¥3,526 million.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥18,360 million. Net cash was mainly provided by proceedsfrom long-term loans payable of ¥20,385 million, while net cash was mainly used by cash dividends paid of¥1,716 million.

-6-

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

2013

2014

2015

2016

2017

Equity ratio (%)

72.8

63.7

62.5

59.5

58.6

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

40.6

29.6

31.6

20.4

19.5

Interest-bearing debt to cash flow ratio (years)

0.8

1.2

1.0

2.3

3.4

110.9

53.2

99.4

83.6

48.7

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.

(4) Future outlook
The latest financial forecasts are based on a JCC price of $50 per barrel for the whole fiscal year, and an
exchange rate of ¥110/$ for the whole fiscal year. Actual non-consolidated results for the fiscal year underreview came to $45.60 per barrel and ¥108.53/$.
Net sales for the fiscal year ending March 31, 2018 is expected to increase by ¥7,747 million (+3.7%) fromthe fiscal year under review to ¥214,878 million. This is due to an expected increase in sales mainly reflecting
growth in sales volumes for overseas crude oil and bitumen products.
Operating profit is expected to increase by ¥2,303 million (+336.2%) from the fiscal year under review to¥2,988 million as we expect declines mainly in selling, general and administrative expenses.
Ordinary profit is expected to increase by ¥3,202 million (+144.1%) from the fiscal year under review to¥5,424 million. This mainly reflects an expected increase share of profit of entities accounted for using equity
method, among other factors, which are expected to absorb a decline in the foreign exchange gains recordedin the fiscal year under review.
Profit attributable to owners of parent is expected to increase by ¥2,121 million (+61.6%) from the fiscal year
under review to ¥5,564 million despite a decline in extraordinary income after posting a gain on sales of noncurrent assets in the fiscal year under review and an expected increase in income taxes.

(5) Fundamental policy on allocation of profits and dividend forecasts for this fiscal year andnext fiscal year
JAPEX has a basic policy of long-term and stable dividend payout to shareholders. Also, the JAPEX Group is
responsible for the stable supply of oil and natural gas that is essential in social life, and we have to consider
our financial plan including retained earnings for future use, such as new investments to secure reserves,maintain and expand our supply infrastructure, and others with mid-long term business outlook. Based onthese factors and recent condition of our financial results and forecasts due to low price ranges of oil and gas,
we will determine an amount of dividend in each time comprehensively considering financial conditions andfuture needs for funds with the view of strengthening our financial basement.
In the amount of dividend of the fiscal year ended March 31, 2017, interim dividend per share recorded on
September 30, 2016 was ¥5.00. And its year-end dividend per share recorded on March 31, 2017 isdetermined ¥10.00 which is changed from undetermined through in accordance with the above factors and thelatest financial results.
From these results, total amount of dividend per share in the fiscal year ended March 31, 2017 is going to be¥15.00.
Furthermore, the forecast of total annual amount of dividends per share in the fiscal year ending March 31,2018 is ¥20.00: its breakdown is interim dividend to be recorded on September 30, 2017 as ¥10.00 and yearend dividend to be recorded on March 31, 2018 as ¥10.00.
-7-

2. 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.

-8-

3. Consolidated financial statements(1) Consolidated balance sheet(Millions of yen)

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-9-

As of March 31, 2016

As of March 31, 2017

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

109,48828,283
1,302
4,282
84
5,414
143
4,348
8,042
(31)
161,359

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

170,341(130,907)
39,433
113,166(77,400)
35,765
117,045(99,255)
17,79057,955(7,144)50,81016,736217,984
21,336(16,068)
5,268
383,790

9,698
9,698

8,487
8,487

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

148,237
11,672
4,668
954
30,171(51)(2,549)193,102585,380
746,739

(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
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- 10 -

As of March 31, 2016

As of March 31, 2017

8,585
67
23,63732,29013,63424
24,252
37,911130,030
24,26788
3,574
17,811
4,221
179,994
212,284

141,903
29,497
69
3,572
18,292
4,882
198,218
236,129

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

14,288183345,693(10)
360,155

50,554

69,832

3
10,087
253
60,89974,308495,317707,601

(226)
7,301
455
77,36373,091
510,609746,739

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

Fiscal year ended
March 31, 2016
(April 1, 2015March 31, 2016)
240,302
193,02247,279Net sales
Cost of sales
Gross profit
Exploration expenses
Exploration expenses
Exploration subsidies
Total exploration expenses
Selling, general and administrative expenses
Operating profit
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
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on transfer of mining rights
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on business liquidation
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit attributable to owners of parent- 11 -(Millions of yen)
Fiscal year ended
March 31, 2017
(April 1, 2016March 31, 2017)
207,130
174,957
32,172

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

1,847
(334)
1,512
29,975
685

1,470
2,498
0

1,243
2,301
104

1,624

–

–
1,121
6,715

3,444
920
8,014

784
1

1,245
15

–

4,255

8,805
808
10,399
4,652

–
961
6,477
2,222

82
–
–
82

892
403
5
1,301

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

90
62
177
0
331
3,192
2,619
(977)
1,642
1,550
(1,892)
3,443

Consolidated statement of comprehensive income

Fiscal year ended
March 31, 2016
(April 1, 2015March 31, 2016)(4,879)Profit (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
Changes in equity interest
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 12 -(Millions of yen)
Fiscal year ended
March 31, 2017
(April 1, 2016March 31, 2017)
1,550(35,606)
0(9,752)(267)

19,302(244)(4,283)
267

(416)

(297)

–
(46,043)(50,923)(2,103)
12,64014,191(36,293)

16,564(14,630)(2,372)

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2016 (April 1, 2015 – March 31, 2016)(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Capital surplus

14,288–Retained earnings

Treasury shares

346,441(10)

Total shareholders’equity360,719

Dividends of surplus(2,857)(2,857)

Profit attributable to ownersof parent

2,090

2,090

Change in ownershipinterest of parent due totransactions with noncontrolling interests

157

157

Net changes of items otherthan shareholders’ 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 ofcurrent period
Changes of items during
period86,174

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

312,980521

99,678Dividends of surplus(2,857)

Profit attributable to ownersof parent

2,090

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period157(35,619)0(2,892)(267)(38,779)(5,941)(44,721)(35,619)0(2,892)(267)(38,779)(5,941)(45,330)

50,554

3

10,087

253

60,89974,308495,317- 13 -

Fiscal year ended March 31, 2017 (April 1, 2016 – March 31, 2017)(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Capital surplus

14,288157

Retained earnings

Treasury shares

345,674(10)

Total shareholders’equity360,109

Dividends of surplus(1,714)(1,714)

Profit attributable to ownersof parent

3,443

3,443

Change in ownershipinterest of parent due totransactions with noncontrolling interests

26

26

Change of scope of equity
method393

393

Changes in equity interest(2,103)(2,103)

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

–

26

19

–

45

14,288183345,693(10)

360,155

Non-controllinginterests

Total net assets

74,308495,317

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning ofcurrent period
Changes of items during
period50,554

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

3

10,087

253

60,899Dividends of surplus(1,714)

Profit attributable to ownersof parent

3,443

Change in ownershipinterest of parent due totransactions with noncontrolling interests

26

Change of scope of equity
method393

Changes in equity interest(2,103)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period19,277(229)(2,786)201

16,463(1,216)

15,247

19,277(229)(2,786)201

16,463(1,216)

15,292

69,832

(226)

7,301

455

77,36373,091

510,609- 14 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2017
(April 1, 2016March 31, 2017)

Fiscal year ended
March 31, 2016
(April 1, 2015March 31, 2016)
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
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in allowance for overseas
investment loss
Interest and dividend income
Interest expenses
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- 15 -

1,508
17,078
3,098
117

3,192
15,690
62
86

69

10

2

(6)

(324)
(422)

(65)
(1)

(786)

(18)

(469)

(298)

(3,968)784
8,110(3,545)
1,245(1,426)1(89)(1,624)

4,255

41,402

26,437609(3,648)

3,707(1,219)

847

3,055

(82)
(2,288)67,372(9,713)57,659(1,232)
3,651
46,135(2,463)
43,672

(Millions of yen)
Fiscal year ended
March 31, 2017
(April 1, 2016March 31, 2017)

Fiscal year ended
March 31, 2016
(April 1, 2015March 31, 2016)
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
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- 16 -

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

(7,249)946
398(70,250)
951
(323)
(294)
(135)

9

2,645

(2,821)(42,958)
(24)
5,065
5,784
13
1,070
(974)
(125,771)(339)(21,380)
(24)
1,082
5,511
–
3,526
250
(84,686)

171,394(214,137)
103,711(10,392)(2,899)(2,156)––
20,385–(1,716)
(315)

(398)

–

(689)
(619)

(896)
(594)

11,005

1,498

54,816

18,360(2,791)(286)(16,086)
142,657
126,570(22,940)
126,570
103,630

4. Others
Status of production and sales
1. Production
Fiscal year ended March 31, 2016
(April 1, 2015 –March 31, 2016)

Fiscal year ended March 31, 2017
(April 1, 2016 –March 31, 2017)

1,908,080

1,570,228(1,564,057)(1,264,026)

1,331,251

1,380,939(507,328)(600,976)

2,202

10,154306,432

90,751(306,432)(90,751)

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, 2016
(April 1, 2015 –March 31, 2016)
AmountVolume(Millions of yen)
Crude oil (kl)

2,926,653

98,0232,670,522

81,428

1,780,537

68,4691,864,865

55,329LNG (t)208,246

17,715398,295

20,278Bitumen (kl)306,436

4,894

91,627669

3Natural gas (thousand m )E&P

Subtotal

189,103

157,706

9,797

10,354

Oil products/merchandise

32,60933,354

Others

8,792

5,715

Subtotal

41,40139,069Total

240,302207,130

Contract services
Otherbusinesses

Fiscal year ended March 31, 2017
(April 1, 2016 –March 31, 2017)
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.

- 17 -