Consolidated Financial Results for the Fiscal Year Ended March 31, 2018
<under Japanese GAAP>May 11, 2018
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:
https://www.japex.co.jp/
President:
Hideichi Okada
Inquiries:
Shigeyoshi Hasegawa, General Manager, Media and Investor Relations Department
TEL: +81-3-6268-7110 (from overseas)
Scheduled date of ordinary general shareholders’ meeting:June 28, 2018
Scheduled date to commence dividend payments:
June 29, 2018
Scheduled date to file Securities Report:
June 28, 2018
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, 2018
(April 1, 2017 – March 31, 2018)
Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Profit attributable toowners of parent

Fiscal year ended

Millions of yen

March 31, 2018

230,629

11.3

8,764

–

3,828

72.3

(30,958)–

March 31, 2017

207,130 (13.8)

685(91.8)

2,222(52.2)

3,443

64.7

Note: Comprehensive income:% Millions of yen

Ordinary profit

FY2018/3: (50,729) million yen (– %)% Millions of yen% Millions of yen%

FY2017/3: 14,191 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, 2018

(541.69)

–

(7.2)

0.5

3.8

March 31, 2017

60.24

–

0.8

0.3

0.3

Reference: Equity in earnings (losses) of affiliates: FY2018/3: (2,601) million yen(2)

FY2017/3: (4,255) 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, 2018699,539457,20760.5

7,402.41

As of March 31, 2017746,739

510,60958.6

7,655.26

Reference: Equity

As of March 31, 2018: 423,066 million yen

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

-1-

(3)

Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2018

52,881(54,218)(1,196)99,892

March 31, 2017

43,672(84,686)

18,360103,630

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, 2017

–

5.00

–

10.00

15.00

857

24.9

0.2

Fiscal year ended
March 31, 2018

–

10.00

–

10.00

20.00

1,143

–

0.3

Fiscal year ending
March 31, 2019
(Forecast)

–

10.00

–

10.00

20.00

3.

12.0

Consolidated financial forecasts for the fiscal year ending March 31, 2019 (April 1, 2018 – March 31, 2019)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2019

Operating profit

Ordinary profit

Profit attributable Basic earnings per
to owners of parent
shareMillionsof yen%Millionsof yen%Millionsof yen%Millionsof yen265,64915.2

644(92.7)

9,947

159.8

9,487

%
–

Yen
166.00

*
(1)

Notes
Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in the change in scope of consolidation): None

(2)

Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Noneb. 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, 201857,154,776 shares
As of March 31, 201757,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2018
2,139 shares
As of March 31, 2017
2,139 sharesc. Average number of shares during the period
Fiscal year ended March 31, 201857,152,637 sharesFiscal year ended March 31, 201757,152,637 shares-2-Reference: Summary of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2018
(April 1, 2017 – March 31, 2018)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Operating profit% Millions of yen

Ordinary profit

ProfitFiscal year ended

Millions of yen% Millions of yen

March 31, 2018

165,134

10.0

11,625

46.4

20,292

23.2(26,665)–

March 31, 2017

150,137 (17.2)

7,938(33.0)

16,473

4.5

15,063

46.1

Basic earnings per share

Diluted earnings per
share

Fiscal year ended

Yen

Yen

March 31, 2018(466.56)–

March 31, 2017263.57–(2)% Millions of yen%

Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2018491,223

386,92878.8

6,770.10

As of March 31, 2017

493,018

397,94180.7

6,962.79

Reference: Equity

As of March 31, 2018: 386,928 million yen

As of March 31, 2017: 397,941 million yen* Financial results reports are not required to be audited by certified public accountants or an audit
corporation.
* 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 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 11, 2018 (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 14,
2018 (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, 2018, the Japanese economy continued to recover moderately amid an
ongoing trend of improvement throughout the year with respect to corporate earnings and the employment
situation, despite improvement apparently lagging somewhat particularly in terms of sluggish housing
construction at the start of the fiscal year.
The Japan Crude Cocktail (JCC) price slumped to the upper $40 level by July 2017, after having gradually
declined from the low end of the $50 range per barrel at the start of the year. However, it reached the highend of $60 territory by the end of the fiscal year largely due to an OPEC agreement to extend production cutsin November 2017.
In the currency exchange market, the yen remained largely in the lower ¥110 range against the US dollar
from the start of the fiscal year, before appreciating to upper ¥100 territory in September. Subsequently, theyen shifted to a weakening trajectory at the lower ¥110 range, but beginning in February returned to a path ofappreciation to levels in upper ¥100 territory through to the end of the fiscal year. As a result, the JAPEXGroup’s JCC price climbed as an average for the fiscal year compared to the previous fiscal year.
On the other hand, with natural gas competitive advantages prevailed against competing energy sources amid
rising prices of petroleum products, etc. brought about by increasing JCC prices and the weak yen. Still, the
JAPEX Group faced a severe market environment with respect to natural gas due to intensifying competition
amid efforts by other companies in JAPEX’s market domain to promote natural gas infrastructure projects
such as LNG receiving terminals and related pipelines.
Under such circumstances, the JAPEX Group has been promoting business based on its Long-Term Business
Vision for the ten years from fiscal 2015 and Medium-Term Business Plan covering the five years from fiscal
2015 through fiscal 2019 to achieve the vision.
During the fiscal year, net sales was at ¥230,629 million, an increase of ¥23,499 million (+11.3%) year on
year, and gross profit was at ¥39,263 million, an increase of ¥7,090 million (+22.0%) year on year. The main
factors behind the year-on-year increases in net sales and gross profit were rises in sales price of crude oil andnatural gas.
Exploration expenses was ¥1,324 million, a decrease of ¥188 million (-12.4%) year on year. This was mainly
the result of a considerable decrease of expenditures primarily overseas. Selling, general and administrative
expenses was ¥29,173 million, a decrease of ¥801 million (-2.7%) year on year. As a result, operating profit
was ¥8,764 million, an increase of ¥8,079 million (+1,179.5%) year on year.
At Japan Canada Oil Sands Limited (JACOS), following the decision not to restart operation of bitumen
production using SAGD method* in the 3.75 Section Area (hereinafter “the DEMO Area”) at the
Hangingstone leases in the province of Alberta, Canada, the property, plant and equipment relating to the
DEMO Area was depreciated by the unit-of-production method and was posted to depreciation of inactive
non-current assets. Because of this and other negative factors, despite a significant increase in operating profit,
ordinary profit was ¥3,828 million, an increase of ¥1,606 million (+72.3%) year on year.
Following the decision not to proceed the Pacific NorthWest LNG Project (hereinafter “the PNW LNG
Project”), the development plan of the shale gas project (hereinafter “the Upstream Project”) was revised
without the assumption of the PNW LNG Project. As a result, due to the posting of impairment loss on theasset of JAPEX Montney Ltd. (JML) relating to the Upstream Project, and the posting of cancellation
expenses of pipeline construction plan relating to the PNW LNG Project as other in extraordinary losses, loss
before income taxes increased by ¥72,596 million to ¥69,403 million year on year, and profit attributable toowners of parent decreased ¥34,401 million year on year to loss attributable to owners of parent of ¥30,958
million.
* One of the methods to extract ultra-heavy crude oil by injecting steam into the formation to increase fluidityof ultra-heavy crude oil and to use the gravity effect for extraction.

-4-

Below is a breakdown of sales.
(i) E&P
Net sales from E&P (including liquefied natural gas (LNG), bitumen and diluted bitumen) came to¥176,051 million, an increase of ¥18,345 million (+11.6%) year on year. This was mainly the result ofrises in sales price of crude oil and natural gas and increases in sales volume of domestic natural gas anddiluted bitumen at JACOS.
(ii) Contract Services
Net sales from contract services (involved in drilling and geological surveys) came to ¥8,484 million, adecrease of ¥1,869 million (-18.1%) 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¥46,093 million, an increase of ¥7,023 million (+18.0%) year on year.
Below is a summary of performance by segment (before elimination of intersegment transactions).
(1) Japan
Net sales in the Japan segment are mainly composed of crude oil and natural gas (including LNG), contract
services, oil products and the like. In the fiscal year under review, net sales were at ¥219,566 million, an
increase of ¥20,060 million (+10.1%) year on year, due mainly to an increase in sales prices of crude oil andnatural gas, as well as an increase in sales volume of natural gas. Segment profit increased by ¥1,972 million(+9.6%) year on year to ¥22,497 million. This was mainly due to the above-mentioned increase in net sales,
despite an increase in selling, general and administrative expenses.
(2) North America
Net sales in the North America segment are mainly composed of crude oil and natural gas (including bitumen
and diluted bitumen). In the fiscal year under review, net sales came to ¥9,250 million, an increase of ¥3,561
million (+62.6%) year on year due mainly to an increase in sales volume of diluted bitumen with respect to
JACOS. There was a segment loss of ¥6,615 million (compared to segment loss of ¥8,620 million in theprevious fiscal year). The loss was less than in the previous fiscal year due to the decrease in selling, generaland administrative expenses and the above-mentioned increase in net sales.
(3) Europe
In the Europe segment, exploration activities have been conducted in the UK North Sea block locatedoffshore Aberdeen. In the fiscal year under review, there was segment loss of ¥74 million (compared tosegment loss of ¥268 million in the previous fiscal year) as a result of a decrease in exploration expenses andothers.
(4) Middle East
Net sales from the Middle East segment are mainly composed of crude oil. In the fiscal year under review, net
sales came to ¥32,189 million, an increase of ¥5,010 million (+18.4%) year on year, due mainly to anincrease in sales price, despite a decrease in sales volume. Segment profit came to ¥1,366 million (compared
to segment loss of ¥1,120 million in the previous fiscal year). This was mainly due to the above-mentioned
increase in net sales, and despite an increase in cost of sales.

-5-(2) Overview of financial position for the fiscal year under review
Total assets at the end of this fiscal year decreased by ¥47,200 million from the previous fiscal year-end to¥699,539 million.
Current assets increased by ¥7,943 million from the previous fiscal year-end, mainly due to increases in cash
and deposits, and in short-term loans receivable.
Non-current assets decreased by ¥55,143 million from the previous fiscal year-end. This was due to thedecline in property, plant and equipment resulting from the above-mentioned impairment loss of businessassets of JML, progress in the recovery of recoverable accounts included in other in investments and otherassets, and other factors, despite the increase in investment securities resulting from the rise in market values
and other factors.
Total liabilities increased by ¥6,201 million from the previous fiscal year-end to ¥242,331 million.
Current liabilities increased by ¥7,716 million from the previous fiscal year-end, mainly due to an increase in
short-term loans payable included in other in current liabilities. Non-current liabilities decreased by ¥1,514
million from the previous fiscal year-end. This was mainly due to the increase of deferred tax liabilities
resulting from the above-mentioned rise in market values of investment securities, despite the decrease
mainly due to the impact of fluctuation in foreign exchange rates and the reclassification of loans payable
with repayments due in one year or less to current liabilities in long-term loans payable.
Total net assets decreased by ¥53,402 million from the previous fiscal year-end to ¥457,207 million. The
main factors were decreases in non-controlling interests and retained earnings, despite an increase invaluation difference on available-for-sale securities.

(3) Overview of cash flows for the fiscal year under review
As of March 31, 2018, cash and cash equivalents (hereinafter “net cash”) decreased by ¥3,737 million
compared to the end of the previous fiscal year to ¥99,892 million. Below is a summary of cash flows foreach activity.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥52,881 million. The main factors were loss before
income taxes of ¥69,403 million, impairment loss of ¥67,721 million, ¥27,381 million in recovery ofrecoverable accounts, ¥23,370 million in depreciation, and proceeds from subsidy income related to Soma
LNG terminal construction of ¥5,000 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥54,218 million. Net cash was mainly used in purchase ofproperty, plant and equipment of ¥42,534 million, payments into time deposits of ¥28,458 million andpayments of recoverable accounts of ¥15,091 million, while net cash was mainly provided by proceeds fromwithdrawal of time deposits of ¥18,228 million, interest and dividend income received of ¥8,873 million andcollection of loans receivable of ¥4,456 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥1,196 million. Net cash was mainly used in repayments of longterm loans payable of ¥4,760 million and interest expenses paid of ¥1,862 million, while net cash was mainly
provided by increase in short-term loans payable of ¥5,455 million.

-6-

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

2014

2015

2016

2017

2018

Equity ratio (%)

63.7

62.5

59.5

58.6

60.5

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

29.6

31.6

20.4

19.5

19.8

Interest-bearing debt to cash flow ratio (years)

1.2

1.0

2.3

3.4

2.8

Interest coverage ratio (times)

53.2

99.4

83.6

48.7

28.4

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 consolidatedbalance sheet.

(4) Future outlook
The latest financial forecasts are based on a JCC price of $60 per barrel for the whole fiscal year, and an
exchange rate of ¥110/$ for the whole fiscal year. Actual non-consolidated results for the fiscal year underreview came to $56.20 per barrel and ¥111.67/$.
Net sales for the fiscal year ending March 31, 2019 is expected to increase by ¥35,019 million (+15.2%) fromthe fiscal year under review to ¥265,649 million. This is due to an expected increase in sales mainly reflecting
growth in sales volumes for diluted bitumen.
Operating profit is expected to decrease by ¥8,121 million (-92.7%) from the fiscal year under review to ¥644
million. This is primarily due to expected increases in operating costs associated with the year-round
operation of the Soma LNG terminal, and in transportation costs associated with the growth in sales volumes
for diluted bitumen products.
Ordinary profit is expected to increase by ¥6,119 million (+159.8%) from the fiscal year under review to¥9,947 million. This mainly reflects expectations such as that ordinary profit will no longer be impacted by
the depreciation of inactive non-current assets associated with JACOS’ DEMO Area, recorded in the fiscal
year under review. Expectations also include the reversal of asset retirement obligations associated with thetransfer of the interest, etc., in the DEMO Area, and the shift of share of loss of entities accounted for using
equity method to share of profit accounted for using equity method.
Profit attributable to owners of parent is expected to increase by ¥40,446 million from the fiscal year underreview to ¥9,487 million. This is due to an expectation that profit attributable to owners of parent will nolonger be impacted by the impairment loss, etc., associated with JML’s Upstream Project, recorded in thefiscal year under review.

-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, 2017

As of March 31, 2018

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

115,313
26,073
2,200
5,447
381
5,524
151
6,449
7,796
(34)
169,302170,341(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
383,790328,212(141,138)
187,073
116,387(82,611)33,775
116,313(101,395)
14,917
9,312(8,969)342
16,78371,936
21,594(16,933)
4,660
329,490

8,487
8,487

8,226
8,226

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

167,342
4,547
7,669
1,451
13,540(50)(1,982)
192,519
530,236
699,539

(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, 2017

As of March 31, 2018

13,63424
24,252
37,911

13,54420
32,062
45,627

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

135,959
34,872
83
3,496
18,664
3,628
196,704
242,331

14,288183345,693(10)
360,155

14,288183
315,631(10)
330,093

69,832

86,667

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

3
5,149
1,152
92,97334,140457,207699,539

(2) Consolidated statement of income and Consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2017
Net 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
Foreign 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
methodDepreciation of inactive non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Subsidy income
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 (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 11 -

Fiscal year ended
March 31, 2018

207,130
174,957
32,172

230,629
191,366
39,263

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

1,380
(55)
1,324
29,173
8,764

1,243
2,301
104
3,444
920
8,014

1,382
2,422
1,350
2,710
940
8,806

1,245
15

2,178
0

4,255

2,601

–
961
6,477
2,222

7,797
1,165
13,743
3,828

892
–
403
5
1,301

2
5,000
–
–
5,002

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

74
67,721–
10,437
78,234(69,403)
4,392(4,153)
239(69,642)(38,683)(30,958)

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2017
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 -

Fiscal year ended
March 31, 2018

1,550

(69,642)

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

16,791
242
32
632

(297)

(826)

(2,103)
12,64014,191

2,040
18,912(50,729)

16,564(13,308)(2,372)(37,421)

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2017 (April 1, 2016 – March 31, 2017)(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity14,288

157

345,674(10)

360,109

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus(1,714)(1,714)

Profit attributable toowners of 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

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

3

10,087

Remeasurements ofdefinedbenefit plans
253

Total
accumulated
othercomprehensive income
60,899Non-controllinginterests

74,308

Total net assets

495,317

Dividends of surplus(1,714)

Profit attributable toowners of 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- 13 -

Fiscal year ended March 31, 2018 (April 1, 2017 – March 31, 2018)(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Capital surplus

14,288183

Retained earnings

Treasury shares

345,693(10)

Total shareholders’equity360,155

Dividends of surplus(1,143)(1,143)

Loss attributable to ownersof parent(30,958)(30,958)

Changes in equity interest

2,040

2,040

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period––(30,061)–(30,061)

14,288183

315,631(10)

330,093

Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning ofcurrent period
Changes of items during
period69,832

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

(226)

7,301

455

77,36373,091

510,609

Dividends of surplus(1,143)

Loss attributable to ownersof parent(30,958)

Changes in equity interest

2,040

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period16,834229(2,151)

697

15,610(38,950)(23,340)

16,834229(2,151)

697

15,610(38,950)(53,402)86,667

3

5,149

1,152

92,97334,140457,207- 14 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2017
Cash flows from operating activities
Profit (loss) 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 loss (profit) 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
Proceeds from subsidy income
Income taxes (paid) refund
Net cash provided by (used in) operating activities- 15 -

Fiscal year ended
March 31, 2018

3,192
15,69062
86(69,403)23,37067,721
46

10

284

(6)

1

(65)
(1)

(497)
(76)

(18)

14

(298)

(566)

(3,545)
1,245(1,426)(3,805)2,178(3,003)(89)(1,349)

4,255

2,601

26,437

27,381(3,648)2,209(1,219)(1,571)

3,055

844

(1,232)
3,651
46,135–(2,463)
43,672481
2,742
49,6025,000(1,721)
52,881

(Millions of yen)
Fiscal year ended
March 31, 2017
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
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Dividends paid to non-controlling interests
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 -

Fiscal year ended
March 31, 2018(7,249)946
398(70,250)
951
(323)
(294)
(135)

(28,458)
18,2280(42,534)
94
(290)
(712)
(70)

2,645

1,350

(339)
(21,380)
(24)
1,082
5,511
–
3,526
250
(84,686)(198)(15,091)
(20)
4,456
8,873
9
208
(63)
(54,218)–
20,385–(1,716)
(315)
(896)
(594)

5,455
3,221
(4,760)(1,144)(1,529)(1,862)
(577)

1,498

–

18,360(1,196)(286)(1,204)(22,940)
126,570
103,630(3,737)
103,630
99,892*

4. Others
Status of production and sales
1. Production
Fiscal year ended March 31, 2017
(April 1, 2016 –March 31, 2017)

Fiscal year ended March 31, 2018
(April 1, 2017 –March 31, 2018)

1,570,228

1,272,188(1,264,026)(977,887)

1,380,939

1,263,648(600,976)(494,680)

10,154

8,391

90,751

143,152(90,751)(143,152)

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, 2017
(April 1, 2016 –March 31, 2017)
AmountVolume(Millions of yen)
Crude oil (kl)Fiscal year ended March 31, 2018
(April 1, 2017 –March 31, 2018)
AmountVolume(Millions of yen)

2,670,522

81,4282,346,258

89,173

1,864,865

55,3291,773,035

60,431

LNG (t)398,295

20,278

380,955

21,935

Bitumen (kl)

91,627

669

–

–

–

–

160,2034,512

3

Natural gas (thousand m )E&P
Diluted bitumen (kl)Subtotal

157,706

176,051

10,354

8,484

Oil products/merchandise

33,354

40,162Others

5,715

5,930

Subtotal

39,06946,093

Total

207,130

230,629

Contract services
Otherbusinesses

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. Diluted bitumen is bitumen diluted by ultra-light crude oil for pipeline transportation.
3. Monetary amounts in the table do not include consumption taxes.

- 17 -