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

Financial Results

for the Three Months Ended June 30, 2019
August 9, 2019Japan Petroleum Exploration Co .,Ltd.
Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Trends in Crude Oil Price and Foreign Exchange Rate
JPY/USD
115円

USD/bbl
$100
$90
$80

110円

$70
$60

JCC Price USD/bbl$50

2019-04

2019-012018-10

2018-072018-04

2018-012017-10

Exchange Rate JPY/USD

2017-07

$40

105円

100円

Japan Crude Cocktail (JCC) in the first 10 days of July 2019 on a flash report basis :USD69.70/bbl

Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

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Financial Highlights -1Q Results and Full Year ForecastsFY3/19
Billion Yen

1Q (a)①

FY3/20

Full year(a)②

1Q (a)③

Full year (f)Initial forecasts(May 10,2019)④

ChangeFull year (f)Revisedforecasts(Aug. 9, 2019)

1Q
(③-①)

Full year(⑤-②)

Full year
(⑤-④)

⑤*

Net sales

57.6

267.9

93.2

308.6

325.0

+35.6

+57.0+16.3

Operating profit(loss)

-2.6

2.3

4.6

5.6

11.3

+7.2

+9.0

+5.7

Ordinary profit(loss)

-3.1

12.5

8.9

12.6

20.6+12.0

+8.1

+8.0

Profit (loss)
attributable toowners of parent

-2.2

14.7

8.9

11.4

18.0

+11.2

+3.2

+6.6

JCC (USD/bbl)

67.95

71.94

68.77

65.00

66.06

+0.82

-5.88

+1.06

Exchange rate
(JPY/USD)

107.42110.35111.11110.00110.32

+3.69

-0.03

+0.32

Assumptions* JAPEX announced “Notice of Financial Forecasts Revision” on August 9, 2019, regarding the latest revision ofconsolidated financial forecasts of the fiscal year ending March 31, 2020.
Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

3

Financial Results
for the Three Months Ended
June 30, 2019

Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

4Natural Gas Sales for 1Q FY3/20 (Year-on-Year)Sales volume : Million M3
Net sales : Million Yen

FY3/191Q (a)

FY3/201Q (a)

ChangeSales volume406

375-30Net sales

13,845

15,573+1,727

Japan

Sales volume268

267

-1

Gas produced in Japan

Sales volume（137）

（137）

（0）

Overseas

Sales volume137

108-28Natural gas

Increase in sales price inJapan

Sales volume by region

Million M3500
Sales volume ofoverseas gas

400300137108Decrease in shale gas sales volume inCanada

Sales volume ofgas in Japan

200100-268
FY3/19 (a)267Sales volume in “Overseas” which are volume of 2 overseas
subsidiaries (Japex (U.S.) Corp. and JAPEX Montney Ltd.,).

FY3/20 (a)Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

5Crude Oil Sales for 1Q FY3/20 (Year-on-Year)Sales volume : Thousand KL
Net sales : Million Yen

FY3/191Q(a)FY3/201Q(a)ChangeSales volume711

1,293+581Net sales

29,06353,406+24,342

Crude oilproduced inJapan*1

Sales volume61

79+17Net sales

3,030

3,997+967

Crude oilproduced inoverseas*2

Sales volume173

465+292

Net sales

8,413

21,737+13,323

Sales volume240

402+161

Net sales

5,436

10,689+5,253

Crude Oil

Growth in sales volume of crude oil
produced in overseas, and diluted
bitumenEquity oil sales

Diluted bitumen*3

Growth in crude oil sales volume ofGarraf Oil Field, Iraq
Growth in bitumen production
volume of the Hangingstone lease

Sales price and exchange rateJCCUSD/bbl

67.95

68.77

+0.82

Diluted bitumen*3

USD/bbl

33.48

37.98

+4.50

Exchange rate

JPY/USD

107.42111.11+3.69*1 Sales volume and net sales of “Crude oil produced in Japan” which do not include purchased crude oil.
*2 Sales volume and net sales of “Crude oil produced in overseas” which are volume of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEXMontney Ltd. and Japex Garraf Ltd.).
*3 Royalty is excluded in the net sales and price of diluted bitumen.
Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

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1Q FY3/20 Results (Year-on-Year)
Million Yen

FY3/191Q (a)

FY3/201Q (a)

ChangeNet sales

57,623

93,252+35,629

Gross profit

5,079

12,440+7,360

143

217+74

SG&A expenses

7,571

7,605+34

Operating profit (loss)-2,634

4,617+7,251

Non-operating income(expenses)-547

4,292+4,839

Ordinary income (loss)-3,181

8,909+12,091

Extraordinary income(losses)-62-4+58

Income taxes

602-206-808

Exploration expenses

Profit (loss) attributable
to non-controllinginterests-1,585

159+1,745

Profit (loss) attributableto owners of parent-2,261

8,951+11,213

Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

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Main factors for change
Increase factor “+” / Decrease factor “( )”Gross profit
Domestic business
Overseas business+¥3.0 bn.
+¥4.3 bn.

Non-operating income (expenses)
Foreign currency translation adjustments ondebt, foreign exchange gains and losses(FY3/19) Loss of ¥3.4 bn. → (FY3/20) Gains of ¥1.0 bn.

+¥4.5 bn.

Income taxes
Tax effect of U.K. North Sea Offshore Project+¥1.5 bn.

FY3/20 Full Year Forecasts

Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

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Price Assumptions for FY3/20 Forecasts
2019

2020

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
WTI

USD/bbl

JCC

USD/bblExchange rate JPY/USD

JACOS
Diluted bitumen*1

JML
Natural gas*2

USD/bbl
CAD/mcf

Full year

Initial

53.69

55.33

55.00

55.00

54.76

Revised

54.90

59.76

55.97

55.00

56.41

Initial

65.00

65.00

65.00

65.00

65.00

Revised

68.77

65.00

65.00

65.00

66.06

Initial110.00 110.00 110.00 110.00 110.00

Revised111.11 110.00 110.00 110.00 110.32

Initial

37.23

35.79

33.51

33.55

35.01

Revised

37.98

44.23

36.21

33.60

38.08

Initial

1.70

1.70

1.70

1.70

1.70

Revised

2.28

1.41

1.57

1.57

1.71

*1 “JACOS Diluted bitumen” which is the diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*2 “JML Natural gas” which is the gas sales price of JAPEX Montney Ltd. (Excl. Royalty)
Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

9Natural Gas Sales Forecasts for FY3/20(vs Initial Forecasts)
Sales volume : Million M3Net sales : Million Yen

Natural gas

FY3/20FY3/20Initial (f)May 10, 2019

Revised (f)Aug. 9, 2019

ChangeSales volume

1,722

1,732+10Net sales

69,53170,479+947

Sales volume

1,300

1,299-1

Sales volume(561)

（562）

（0）

Sales volume422

433+11

Growth in sales pricein Japan

Sales volume by region
JapanGas produced in Japan

Overseas
Million M3 2,000

1,600

Sales volume ofoverseas gas

422

433

1,300

1,299

1,200
800
400
-Initial(f)Revised (f)Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Growth in shale gas sales volume in
CanadaSales volume ofgas in Japan

Sales volume in “Overseas” which are volume of 2 overseas
subsidiaries (Japex (U.S.) Corp. and JAPEX Montney Ltd.,).

10

Crude Oil Sales Forecasts for FY3/20(vs Initial Forecasts)
Sales volume : Thousand KL
Net sales : Million Yen

FY3/20Initial (f)May 10, 2019

Sales volume

4,512

4,662+149

Net sales

168,257

180,270+12,012Crude oilproduced inJapan*1

Sales volume265

278+12Net sales

12,463

13,392+929

Crude oilproduced inoverseas*2

Sales volume

1,339

1,349+11Net sales

55,23558,959+3,724

Dilutedbitumen*3

Sales volume

1,516

1,654+138

Net sales

36,71743,606+6,890JCC

USD/bbl

65.00

66.06

+1.06

Dilutedbitumen*3

USD/bbl

35.01

38.08

+3.07

Exchange rate

JPY/USD

110.00110.32+0.32

Crude Oil

FY3/20
Revised (f)Aug. 9, 2019

ChangeEquity oil sales

Growth in sales volume ofcrude oil produced inoverseas, and sales price ofdiluted bitumen

Growth in crude oil sales
price of Garraf Oil Field, Iraq
Growth in sales volume andprice of diluted bitumen ofthe Hangingstone lease

Assumptions*1 Sales volume and net sales of “Crude oil produced in Japan” which do not include purchased crude oil.
*2 Sales volume and net sales of “Crude oil produced in overseas” which are volume of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd.
and Japex Garraf Ltd.).
*3 Royalty is excluded in the net sales and price of diluted bitumen.
Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

11FY3/20 Forecast (vs Initial Forecasts)
Million Yen

FY3/20Initial (f)May 10, 2019

FY3/20Revised (f)Aug. 9, 2019

ChangeMain factors for change
Increase factor “+” / Decrease factor “( )”Gross profit

Net sales

308,650

325,014+16,363

Gross profit

37,78343,285+5,502

1,054

1,083

+29

31,12630,858-268

Operating profit (loss)

5,603

11,344+5,742Foreign currency translation adjustments ondebt, foreign currency exchange gains andlosses+¥ 0.5 bn.

Non-operating income(expenses)

7,067

9,350

+2,282

Dividend income

Ordinary profit (loss)

12,67020,694+8,024

Decrease in interest expenses +¥ 0.4 bn.

Extraordinary income(losses)-78-62+16

1,883

2,898+1,015-704-288+416

11,41318,022+6,609

Exploration expenses
SG&A expenses

Income taxes
Loss attributable to noncontrolling interests
Profit attributable toowners of parent

Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

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Domestic business
Overseas business+ ¥1.7 bn.
+ ¥3.7 bn.

Non-operating income

Income taxes+¥ 1.6 bn.

(JAPEX) Increase in tax expenses due togrowth of profit before income taxes(¥0.6 bn.)
(JACOS) Review of tax effects due to changeof tax rate(¥0.3 bn.)

Natural Gas Sales Forecasts for FY3/20(Year-on-Year)Sales volume : Million M3
Net sales : Million Yen

Natural gas

FY3/20FY3/19(a)ChangeRevised (f)Aug. 9, 2019

Sales volume

1,731

1,732+1

Net sales

67,82070,479+2,659

Sales volume

1,243

1,299+55

Sales volume(630)

（562）

-69

Sales volume487

433-55Growth in sales
volume in Japan

Sales volume by region
JapanGas produced in Japan

Overseas
Million M3

2,000
1,600
1,200800
400-487

433

1,243

1,299

FY3/19 (a)Sales volume ofoverseas gas

Decrease in shale gas sales volume inCanada

Sales volume ofgas in Japan

Growth in demand for commissioningof the Fukushima Natural Gas PowerPlant

Sales volume in “Overseas” which are volume of 2 overseas
subsidiaries (Japex (U.S.) Corp. and JAPEX Montney Ltd.,).

FY3/20 (f)Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

13

Crude Oil Sales Forecasts for FY3/20(Year-on-Year)Sales volume : Thousand KL
Net sales : Million Yen

FY3/19(a)FY3/20
Revised (f)Aug. 9, 2019

ChangeSales volume3,064

4,662+1,597

Net sales

124,696

180,270+55,573

Crude oilproduced inJapan*1

Sales volume261

278+17

Net sales

13,746

13,392-355

Crude oilproduced inoverseas*2

Sales volume366

1,349+982

Net sales

16,59958,959+42,360

Sales volume

1,176

1,654+478

Net sales

30,116

43,606+13,490

JCC

USD/bbl

71.94

66.06

-5.88

Diluted bitumen*3

USD/bbl

36.67

38.08

+1.41

Exchange rate

JPY/USD

110.35110.32-0.03

Crude Oil

Growth in sales volume

Equity oil sales

Diluted bitumen*3

Growth in crude oil sales
volume of Garraf Oil Field,
Iraq
Growth in bitumen
production volume of theHangingstone lease

Assumptions*1 Sales volume and net sales of “Crude oil produced in Japan” which do not include purchased crude oil.

*2 Sales volume and net sales of “Crude oil produced in overseas” which are volume of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd.
and Japex Garraf Ltd.).
*3 Royalty is excluded in the net sales and price of diluted bitumen.
Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

14

FY3/20 Forecast (Year-on-Year)
Million YenFY3/19(a)FY3/20
Revised (f)Aug. 9, 2019

ChangeNet sales

267,980

325,014+57,033

Gross profit

34,84643,285+8,439

788

1,083+294

31,74330,858-886

Operating profit (loss)

2,313

11,344+9,031

Non-operating income(expenses)

10,2099,350-860

Ordinary profit (loss)

12,523

20,694+8,171

Extraordinary income(losses)

550-62-612-1,254

2,898+4,153-441

-288

+154

14,77018,022+3,252

Exploration expenses
SG&A expenses

Income taxes
Loss attributable to noncontrolling interests
Profit attributable toowners of parent

Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

15

Main factors for change
Increase factor “+” / Decrease factor “( )”Gross profit

Domestic business
Overseas business(¥1.1 bn.)+¥9.5 bn.

Non-operating income (expenses)••

Equity on earnings(¥ 5.7 bn.)
Foreign currency translation adjustments
on debt, foreign exchange gains andlosses(FY3/19) Loss of ¥5.2bn. →(FY3/20) Gains of ¥0.5bn.

•••+¥5.8 bn.
Dividend income+¥3.1 bn.
(FY3/19)Gains of ARO cancellation due toselling interests of the Hangingstone lease(¥3.2bn.)
Increase in interest expenses (¥0.4bn.)

Income taxes(JAPEX) Increase in tax expense due toabsence of one-time factor incurred inprecious period(¥2.8bn.)(FY3/19) Application of foreign tax credit on
Garraf Project(¥2.3bn.)
Tax effect of U.K. North Sea Offshore Project+¥1.7bn.

Sensitivities Analysis on FY3/20 Forecasts basis (2Q-4Q)

FY3/20
2Q-4Q
Assumptions

Impacts on profit（Million Yen）
Fluctuation

JCC
Crude oilpriceUSD 65.00/bbl

Increase byUSD1/bbl

Operatingincome400155

WTI

Profitattributableto owners ofparent

320
146

Main factors for change

Increase factor “+” / Decrease factor “( )”+ Sales of oil and gas(Increase in LNG procurement cost)+ Sales of diluted bitumen

USD 56.91/bbl

Exchangerate￥ 110.00/USD

Natural gas
price inCanada

CAD 1.51/mcf￥ 82.11/CAD

1 weaker yen
against USD

Increase byCAD1/mcf

430

13027090+ Sales of oil and gas(Increase in LNG procurement cost)+ Sales of shale gas in Canada(Increase in operation cost of theHangingstone lease)• 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 occur. Actual profits are influenced by various other factors besides crude oil
prices and exchange rates.
Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

16

Cautionary Statement
This document contains future prospects such as plans, forecasts, strategies, and others
which are not historical fact and these are made by the management’s judgement basedon the obtainable information at the time of the disclosure. Actual results may significantly
differ from those future prospects 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 prior consent of JAPEX.
Note: Abbreviations used herein are as follows:(a) = Actual results(f) = Forecasts
FY = Fiscal Year (FY3/20, for instance, means 12 months ending March 31, 2020)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:Investor Relations Group, Media & Investor Relations Dept.
Japan Petroleum Exploration Co., Ltd. (JAPEX)Tokyo, JAPANTEL: +81-3-6268-7111
Copyright © 2019 Japan Petroleum Exploration Co., Ltd. All rights reserved.

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