Consolidated Financial Results for the Fiscal Year Ended March 31, 2009
May 14, 2009
Note: The following report is a summary of the Japanese-language original.

Company name:
Listing:
Securities code:
URL:
President:
Inquiries:

Japan Petroleum Exploration Co., Ltd.
Tokyo Stock Exchange, First Section1662
http://www.japex.co.jp/
Osamu Watanabe
Shigeyoshi Hasegawa, Manager, Media Relations, Media and Investor Relations Department
TEL: (03) 6268-7110
Scheduled date of ordinary general shareholders’ meeting: June 24, 2009
Scheduled date to commence dividend payments:
June 25, 2009
Scheduled date to file Securities Report:
June 25, 2009
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.
(1)Consolidated financial results for the fiscal year ended March 31, 2009
(April 1, 2008 – March 31, 2009)(Percentages indicate year-on-year changes.)
Consolidated operating results
Net sales

Operating income% Millions of yen

Ordinary income% Millions of yen

Net income

Fiscal year ended

Millions of yen% Millions of yen%

March 31, 2009

202,127(2.7)

20,0902.4

22,358 (17.9)

12,560 (37.5)

March 31, 2008

207,63822.1

19,625 (34.0)

27,247 (21.5)

20,097(4.2)

Ratio ofRatio of
Return on equity ordinary income to operating income tototal assets
sales

Net income per
share

Diluted net
income per share

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2009

219.77

–

3.1

4.0

9.9

March 31, 2008

351.65

–

4.5

9.5

4.7

Note: Equity in net income (loss) of non-consolidated subsidiaries and affiliates:(2)

FY2009 -270 million yen

FY2008 2,193 million yen

Equity ratio

Net assets per share

Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen%

Yen

As of March 31, 2009

500,444378,22774.1

6,486.85

As of March 31, 2008

620,946448,22670.8

7,696.00

Reference: Equity(3)

As of March 31, 2009: 370,743 million yen

As of March 31, 2008: 439,852 million yen

Consolidated cash flows
Net cash provided by(used in) operating
activities

Net cash provided by(used in) investing
activities

Net cash provided by(used in) financing
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, 2009

36,381(23,342)(477)

51,975

March 31, 2008

34,314(53,169)

1,522

42,440-1-

2.

Cash dividends
Cash dividends per share

Ratio ofdividends to
Dividend
net assets
payout ratio(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, 2008

–

20.00

–

20.00

40.00

2,286

11.4

0.5

Fiscal year ended
March 31, 2009

–

20.00

–

20.00

40.00

2,286

18.2

0.6

Fiscal year ending
March 31, 2010
(Forecast)

–

20.00

–

20.00

40.00

Record date

3.

48.4

Consolidated financial forecasts for the fiscal year ending March 31, 2010 (April 1, 2009 - March 31, 2010)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Ordinary income

Net income

Net income pershare

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

For the six months ending
September 30, 2009

59,903(46.0)(2,008)–147(98.9)

91(99.0)

1.59

Fiscal year ending March
31, 2010

129,313(36.0)

931(95.4)

5,919(73.5)

4,726(62.4)

82.69

4.
(1)

OthersChanges in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None

(2)

Changes in accounting policies, procedures, and methods of presentation for preparing the consolidated
financial statements (changes described in the section of “Changes in significant matters forming the basis ofpreparing the consolidated financial statements”)
a. Changes due to revisions to accounting standards and other regulations: Yes
b. Changes due to other reasons: None(3)

Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2009
57,154,776 shares
As of March 31, 2008
57,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2009
1,783 shares
As of March 31, 2008
1,407 shares-2-Reference: Summary of non-consolidated results1.
(1)

Non-consolidated financial results for the fiscal year ended March 31, 2009
(April 1, 2008 – March 31, 2009)(Percentages indicate year-on-year changes.)
Non-consolidated operating results
Net sales

Operating income% Millions of yen

Ordinary income

Fiscal year ended

Millions of yen

March 31, 2009

157,818(8.0)

13,037 (29.8)

25,445

43.5

18,571

30.1

March 31, 2008

171,563

40.5

18,56017,726 (25.7)

14,279(8.7)

Net income per
share

Diluted net
income per share

Fiscal year ended

Yen

Yen

March 31, 2009

324.95–

March 31, 2008

249.84–(2)% Millions of yen

Net income

0.9% 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, 2009

466,550

350,991

75.2

6,141.26

As of March 31, 2008

567,469

408,81472.0

7,152.94

Reference: Equity

2.

As of March 31, 2009: 350,991 million yen

As of March 31, 2008: 408,814 million yen

Non-consolidated financial forecasts for the fiscal year ending March 31, 2010
(April 1, 2009 - March 31, 2010)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Ordinary income

Net income pershare

Net income

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

For the six months ending
September 30, 2009

47,602(43.3)

1,424(85.2)

1,836(89.9)

1,589(89.8)

27.81

Fiscal year ending
March 31, 2010

104,159(34.0)

6,890(47.2)

10,413(59.1)

9,793(47.3)

171.35* Proper use of financial forecasts, and other special matters
The forecast statements shown in this document are based on information that was available at the time of
preparation. Actual performance may differ materially from these forecasts due to various factors. For theoutlook for the fiscal year ending March 31, 2010, please refer to the section of “(1) Analysis of businessperformance” of “I. Business results” on page 4.

-3-

I. Business results(1) Analysis of business performance
In the consolidated fiscal year ended March 31, 2009, the Japanese economy, which was at a standstill at the
beginning of the fiscal year and started to slow down around summertime, is beset by a sharp overall
deterioration with an extremely large drop in corporate earnings at the end of the fiscal year and large-scale,ongoing employment adjustments.
Although the price of crude oil CIF (cost, insurance and freight) rose from nearly $100 per barrel in the
beginning of the fiscal year to mid-$130 range in August, it drastically fell after its peak in the same monthand hovered at mid-$40 range as of the end of the fiscal year.
In the area of FOREX, although the lowest point for the yen’s value against the US dollar exceeded ¥110 inAugust, it subsequently made a turnaround rising up to the upper-¥80 range in December, its historical highlevel. This was followed by another U-turn at the end of the fiscal year down to the upper-¥90 range. Despite
these wild fluctuations, the low crude oil CIF price during fall and winter pushed the Group’s crude oil prices
down slightly compared with the previous fiscal year.
Furthermore, the market environment of natural gas was quite a detriment for the Group as the third quarterbegan. It lost its competitive strength among the other energy sectors as a result of falling oil products prices
pushed down by tumbling crude oil since the fall, and demand was waning on the heels of an ever worsening
economy.
Under these conditions, the JAPEX Group worked to maintain production and transportation operations withthe aim of ensuring stable supplies of energy, indispensable resources for society, over the long term. In
addition, the Group focused its collective efforts on efficient E&P both in Japan and overseas.

Net sales in the fiscal year were at ¥202,127 million, a decrease of ¥5,510 million (-2.7%) year on year.
Gross profit increased by 5.8%, or ¥3,724 million year on year, to ¥67,680 million. Although averagefull-year prices decreased year on year due to sharp drops in crude oil since the fall, this was offset by factors
such as a rise in natural gas and bitumen prices.
For operating income, compared to the previous fiscal year, seismic survey activities mostly in Indonesia andexploratory drilling activities off the coast of Niigata and in Akita, Hokkaido and the Philippines caused anincrease in exploration expenses of ¥1,793 million (+13.2%) coupled by a rise in selling, general andadministrative expenses of ¥1,466 million (+4.8%). This resulted in an operating income posting of ¥20,090
million, up ¥464 million, or 2.4%, year on year.
Ordinary income was ¥22,358 million, a decrease of ¥4,889 million (-17.9%) year on year due to aturnaround from equity in earnings of affiliates to equity losses as well as a decrease in reversal of allowancefor overseas investment loss and an increase in provision for cost of abandonment due to a revision of theGroup’s plans for the abandonment of wells.
Income before income taxes was ¥17,108 million, a decrease of ¥9,196 million (-35.0%) year on year, duein large part to the posting of a loss on retirement of noncurrent assets and an impairment loss as
extraordinary loss caused by the abandoning of a portion of the Numanohata SK-8D well due to its inability
to produce a commercial quantity. The well was spudded in May 2008 mainly for production drilling at the
Yufutsu oil and gas field in Hokkaido.
Net income was ¥12,560 million, a decrease of ¥7,537 million (-37.5%) year on year as a result of lower
income taxes.

Below is a summary of earnings by business division.
(i) E&P Division
The E&P Division sells crude oil, natural gas, liquefied natural gas (LNG) and bitumen. During the fiscal
year ended March 31, 2009, this Division posted net sales of ¥183,471 million, down ¥4,188 million (-2.2%)-4-

year on year, due in part to a decrease in the sales amount of Sakhalin crude oil traded and falling full-year
crude oil prices in spite of rises in natural gas and bitumen prices.
(ii) Contract Services Division
The Contract Services Division is primarily involved in drilling and geophysical surveys. During the fiscal
year ended March 31, 2009, it recorded net sales of ¥4,739 million, down ¥655 million (-12.2%) year on year.
(iii) Other Businesses Division
The Other Businesses Division is primarily involved in the sale of oil products, including liquefied petroleumgas (LPG) and fuel oil, the transportation of natural gas and oil products on consignment as well as othersubcontracted tasks. During the fiscal year ended March 31, 2009, this Division posted net sales of ¥13,916
million, down ¥666 million (-4.6%) year on year.
Outlook for the fiscal year ending March 31, 2010
Our forecast is based on a crude oil CIF price of $40 per barrel and an exchange rate of ¥90/$. Actual
non-consolidated results for the fiscal year under review came to $89.71 per barrel and ¥102.56/$.
Net sales for the fiscal year ending March 31, 2010 is expected to decrease by ¥72,814 million (-36.0%) fromthe previous fiscal year to ¥129,313 million. Sales of crude oil are expected to decrease as the overseas
production of oil drops and prices go down.
Operating income is expected to decrease year on year by ¥19,159 million (-95.4%) to ¥931 million despite asmaller margin of decrease based on expectations of lower exploration expenses and selling, general andadministrative expenses. As for drilling activities, exploratory drilling operations are planned for one
exploration well (on land) and one exploitation well (offshore) for a total of two wells in Japan. Overseas,
exploratory drilling of three wells in Libya (one on land and two offshore) based on seismic survey data isplanned.
Ordinary income and net income are forecast to decrease by ¥16,439 million (-73.5%) and ¥7,834 million(-62.4%) from the previous fiscal year to ¥5,919 million and ¥4,726 million, respectively.

(2) Analysis of financial condition
Overview
a. Balance sheet
Total assets at the end of this fiscal year stood at ¥500,444 million, a decrease of ¥120,502 million (-19.4%),
from the previous fiscal year end. Of this, current assets increased ¥8,111 million (+9.1%) to ¥97,120 million,
and noncurrent assets fell ¥128,613 million (-24.2%) to ¥403,324 million.
The primary change in current assets is the decreases in short-term investment securities due to redemptions
for commercial paper and in notes and accounts receivable-trade, among other factors, despite a higher
Gensaki transaction balance included in other of current assets.
In noncurrent assets, property, plant and equipment increased ¥1,604 million (+1.1%). The factors for
decrease such as depreciation expenses were smaller than the factors for increase such as the drilling ofoffshore and onshore production wells in Niigata along with an increase in production facilities at the Yufutsu
oil and gas field in Hokkaido. Intangible assets fell ¥1,786 million (-28.9%). This decrease was due partly toa decline from amortization of goodwill. Investments and other assets decreased by ¥128,431 million,(-33.4%), due large part to a fall in investment securities in connection with a revaluation of the market valueof the stock of INPEX CORPORATION.
Total year-end liabilities fell ¥50,503 million (-29.2%) to ¥122,216 million year on year mainly due to thedecrease in deferred tax liabilities brought upon by a valuation of the market value of investment securities.
Total year-end net assets decreased ¥69,998 million (-15.6%) to ¥378,227 million, year on year as a result of
decreases in valuation difference on available-for-sale securities and in foreign currency translation
adjustment.
As a result, the equity ratio as of March 31, 2009 was 74.1%.

-5-

b. Cash flows
As of March 31, 2009, cash and cash equivalents (hereinafter, “net cash”) totaled ¥51,975 million, up ¥9,534
million, compared to the end of the previous fiscal year. Below is a summary of cash flows for each activity.
(Net cash provided by (used in) operating activities)
Net cash provided by operating activities was ¥36,381 million. This is mainly attributable to ¥17,108 million
in income before income taxes, ¥21,521 million in depreciation and amortization and ¥6,845 million inincome taxes paid.
(Net cash provided by (used in) investing activities)
Net cash used in investing activities amounted to ¥23,342 million. The main uses were ¥28,012 million for
additions to property, plant and equipment, as iterated above, and ¥6,064 million payments of loans
receivable mainly to Kangean Energy Indonesia Ltd. (KEI) and EMP Exploration (Kangean) Ltd. (EMPE),
both equity method companies which are subsidiaries of Energi Mega Pratama Inc. (EMPI) and ¥9,039
million of proceeds from sales and redemption of investment securities.
(Net cash provided by (used in) financing activities)
Net cash used in financing activities amounted to ¥477 million. This was due to the amount of proceeds fromlong-term loans payable of ¥6,014 million for the procurement of funds to be directed for investment in KEI
and EMPE exceeding the amount of total expenditures such as ¥2,284 million of cash dividends paid and¥2,278 million of repayment of long-term loans payable.
(Ref.) Trend of cash flow indicators
Fiscal years ended March 31

2005

2006

2007

2008

2009

Equity ratio (%)

74.5

72.5

71.0

70.8

74.1

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

63.6

78.9

87.1

60.7

45.3

Interest-bearing debt to cash flow ratio (years)

0.7

0.5

0.6

0.7

0.8

Interest coverage ratio (times)

86.8

188.1

323.3

148.5

70.7

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 stock).
*3. Cash flow is net cash provided by (used in) operating activities.
*4. Interest-bearing debt is all debt subject to interest payments within liabilities shown on the consolidated balance sheets.

(3) Fundamental policy on allocation of profits and dividends for this year and next year
The Company’s basic policy is to sustain stable dividends over the long term. Taking into account the medium
and long-term outlook for the business, dividend payments are set based on respect for the return of profits toshareholders. While considering the need to secure new reserves as an energy company that plays a role inproviding stable supplies of oil and natural gas, indispensable resources for society, the policy also takes into
account the need for retained earnings to finance the replacement of reserves and to upgrade and improvetransportation systems, primarily pipelines.
Based on the above reasoning, an annual dividend of ¥40 per share (¥20 per share interim dividend and ¥20 per
share year-end dividend) is planned for the current year. The same dividend of ¥40 (¥20 per share interim
dividend and ¥20 per share year-end dividend) per share is planned for the following year as well.

-6-II. Business policies(1) Fundamental business policies
Since its establishment in 1955, Japan Petroleum Exploration Co., Ltd. (JAPEX) has pursued its mission ofcontributing to Japan’s energy supplies by securing reserves and expanding production centered on the
exploration, development, and sale of oil and natural gas. Guided by this mission, the Company has steadily
discovered oil and natural gas reserves to result in the business base of today.
In light of its expanding role as a supplier and, consequently, related increases in its responsibility to society
with regard to a stable supply, the JAPEX Group is actively focused on constructing a new business modelthat not only relies on expanding reserves but also upgrading and expanding transportation systems fornatural gas and other initiatives. As such, the Group aims to move forward as a company with the competitive
capabilities required to respond to changes in its operating environment. The section below outlines theGroup’s business philosophy in this respect.
Taking on the challenge of new energy value creation and increasing corporate value
・ Contribute to the supply of energy through global exploration and production (E&P) activities.
・ Contribute to coexistence between the planet and humankind by developing and promoting the use ofenvironment-friendly natural gas.
・ Pursue sustainable growth and maximize shareholder value by placing top priority on winning andmaintaining the trust of society, customers, shareholders and employees.

(2) Medium- and Long-term business strategy and critical issues
The replacement and expansion of reserves, which are depleted by production and sales activities, and theformulation of a supply structure of oil and natural gas that would ensure long-term stability is of paramountimportance to JAPEX, a company whose business is centered on exploration, development and sales of theseresources.
With changes in social conditions marked by an increase in the importance of global warming
countermeasures and the advancing deregulations resulting from the revisions of the Electric Business Act
and the Gas Business Act, the business environment encompassing JAPEX is undergoing a rapidtransformation. As such, the JAPEX will aim to further increase its corporate value through the establishmentof a clear action plan for the attainment of important business challenges over the long term by setting thefollowing three activities as core business objectives; “Exploration/ development efficiency and discovery of
new resources” “Reinforcing an efficient, integrated natural gas operation system” “Corporate efforts toresearch and develop technology and to protect global environment.”
Details of the JAPEX Group Mid-term Business Plan (for fiscal years 2009 to 2013) released on May 21,
2008, may be accessed with the following URLs in our Website.
http://www.japex.co.jp/english/pdf/2008/20080521en_midtermplan_japex.pdf
http://www.japex.co.jp/pdf/2008/20080521d_japex.pdf“Supplementary Materials to the mid-term business plan” (Japanese only)
Since the release of our mid-term business plan in May of last year, we have witnessed drastic changes in ourbusiness environment such as an inevitable and significant drop in the Company’s results attributable to theglobal financial crisis brought on by the U.S. sub-prime housing loan problem as well as an appreciation of
the yen and plunge in international crude oil prices on the heels of a simultaneous worldwide economic
downturn.
In response to such changes, the Company will steadfastly continue the abovementioned three activities ascore business objectives, however, should current crude oil prices remain the same, we are aware thatrealizing the net income, cash flows and other estimates in the mid-term business plan released last year
would be difficult. Therefore, in the first half of business plan period, we will work towards improving
revenue by postponing some domestic exploration projects and reducing expenses, among other initiatives,and make proactive investments with the aim of enlarging our revenue base in the latter years of the businessplan period and beyond during which we expect the economic climate to recover to a certain degree.
Specific outline of the revision are provided below.

-7-[Estimated crude oil prices and exchange rates]
Concerning crude oil prices, taking into consideration its movements during the fourth quarter, we expect
crude oil to remain at the stringent level of $40/bbl for approx. two years and then gradually start improving
in FY 2012. In addition, exchange rates are expected to hover around ¥90/$ throughout the business plan
period.

Crude oil ($/b)
Exchange rate (¥/$)

FY 2009(Actual)
89.7
102.5

FY 2010

FY 201140
90

FY 201240
90

FY 2013
60
90

80
90

*At the time of the May 2008 announcement, crude oil prices and exchange rates were estimated to remain at$80/b and ¥105/$ constantly throughout the business plan period. The outlook for crude oil prices is based on
the JCC (Japan Crude Cocktail = Weighted average CIF price of crude oil imports into Japan). Actual results
are average unit sale prices of the Company.
[Revision of revenue improvement]
With regard to domestic exploration investments, the Company will postpone some exploratory drilling
activities, especially those slated in the first half of the business plan period, to another year and work
towards reducing selling, general and administrative expenses and improving revenue.
FY 2009 to FY 2013 (cumulative)

Announced May 2008

Revision

Domestic exploration expenses

Approx. 50.0 billion yen

Approx. 37.0 billion yen[Revision of quantitative targets]a. Sales target:
In light of slumping demand in the wake of deteriorating economic conditions, theCompany will postpone its 2 billion m3 natural gas sales target period to a year after fromFY 2013.
b. Outlook for FY consolidated income
FY 2009 to 2013 (average)
Net income

Announced May 2008

Revision

Approx. 25.0 billion yen

Approx. 11.0 billion yen

Actual FY 2009 results: Approx. 12.5 billion yen
Forecast for FY 2010: Approx. 4.7 billion yen
c. Outlook for consolidated net cash provided by (used in) operating activities (before income taxes andexploration expense deduction)
FY 2009 to FY 2013 (cumulative)

Announced May 2008

Cash flows from operating activities Approx. 300.0 billion yen

Revision
Approx. 230.0 billion yen

d. Reserve target: Regarding reserves, we will maintain our target announced in May 2008 (almost
doubling the approx. 170 million barrels of proved reserves of crude oil conversion
owned by the JAPEX Group as of the end of FY 2007 to 350 million barrels by the endof FY 2013). As of the end of FY 2009, actual results were approx. 270 million barrels(an increase of 21% year on year).
As stated above, an inevitable fall in the level of income is expected as a result of a slacking natural gas sales
volume in the wake of dropping crude oil prices and an economic slowdown. Nevertheless, we are working
towards improving the condition by means, such as postponing some exploration investments.
At the same time, with the next business developments on the horizon, we will strive to maximize businessvalue by promoting existing overseas projects and strengthen our internal structure including personnel
development with the aim of obtaining new investment opportunities to secure future growth and enhance ourability to implement them.
The JAPEX Group aims to utilize these activities to further strengthen its operating base and enhance its
competitiveness as well as bolster operating efficiency. The ultimate goal is to achieve sustainable
development and maximize shareholder value.

-8-III. Consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2008
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Inventories

As of March 31, 2009

27,79425,865
17,724
10,492

27,702
17,05011,510

Merchandise and finished goods

－

4,255

Work in process

－

553

－
2,295
4,846
(10)
89,0086,200
1,315
28,543(12)
97,120139,690(84,967)
54,722
54,140(35,389)
18,751
83,059(48,013)35,04615,305
12,893
13,860(9,417)
4,443
141,162

142,900(90,876)
52,024
59,115(41,003)
18,112
101,561(53,282)
48,27815,3384,790
14,310(10,087)
4,223
142,767

2,092
4,086
6,179

1,063
3,328
4,392

376,137
7,489
2,065
749
5,872
(97)
(7,621)
384,595
531,937
620,946

241,945
13,432
70
648
5,939
(68)
(5,803)
256,164
403,324
500,444

Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Current assets
Noncurrent 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
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Property, plant and equipment
Intangible assets
Goodwill
Other
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term accounts receivable-other
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for overseas investment loss
Investments and other assets
Noncurrent assets
Assets-9-－

(Millions of yen)
As of March 31, 2008
Liabilities
Current liabilities
Notes and accounts payable-trade
Income taxes payable
Provision for directors' bonuses
Provision for loss on disaster
Other
Current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for cost of abandonment
Provision for loss on business of subsidiaries andaffiliates
Other
Noncurrent liabilities
Liabilities
Net assets
Shareholders’ equity
Capital stock
Retained earnings
Treasury stock
Shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Valuation and translation adjustments
Minority interests
Net assets
Liabilities and net assets- 10 -

As of March 31, 2009

13,469
1,414
102
487
23,38238,857

6,508
392
93
188
16,90924,09321,922
101,477
5,272
511
4,126

25,325
60,108
5,732
559
5,725

310

35

241
133,862
172,720

635
98,123
122,216

14,288245,225(7)
259,506

14,288
255,499(9)269,778

179,629(0)716
180,3468,373
448,226
620,946

105,430(0)(4,465)100,964
7,484
378,227
500,444(2) Consolidated statements of income
Fiscal year ended
March 31, 2008
(April 1, 2007 –March 31, 2008)
Net sales
Cost of sales
Gross profit
Exploration expenses
Exploration expenses
Exploration subsidies
Exploration expenses
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Gain on sales of securities
Equity in earnings of affiliates

207,638
143,682
63,955

Reversal of allowance for overseas investment loss
Reversal of provision for loss on business of subsidiaries
and affiliates
Other
Non-operating income
Non-operating expenses
Interest expenses
Loss on sales of securities
Loss on valuation of securities
Provision for cost of abandonment
Foreign exchange losses
Other
Non-operating expenses
Ordinary income
Extraordinary income
Reversal of allowance for doubtful accounts
Gain on sales of noncurrent assets
Subsidy
Extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Loss on disaster
Other
Extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Income taxes
Minority interests in income
Net income- 11 -(Millions of yen)
Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)
202,127
134,447
67,68013,856(297)
13,55930,77019,625

16,272(920)
15,352
32,237
20,090

1,606
5,184
85
2,193

1,253
5,823
490

1,110

－

291

275

1,580
12,051

1,839
9,682

313
172
1,578
748
1,242
375
4,430
27,247

494
432
1,805
2,055
1,886
740
7,414
22,358

1
1
－

8
0
191

2

199

218
－

2,986
2,312

709
18
945
26,305
6,165
(738)
5,426
780
20,097－152
5,450
17,108
1,879
1,686
3,565
981
12,560－(3) Consolidated statements of shareholders’ equity and statement of changes in shareholders’equity, etc.
(Millions of yen)
Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)

Fiscal year ended
March 31, 2008
(April 1, 2007 –March 31, 2008)
Shareholders' equity
Capital stock
Balance at the end of previous period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period- 12 -

14,28814,28814,28814,288227,413245,225(2,286)20,097
17,811
245,225(2,286)
12,56010,274
255,499

(5)

(7)

(1)
(1)
(7)

(2)
(2)
(9)

241,696259,506(2,286)20,097(1)
17,810259,506(2,286)
12,560(2)
10,272
269,778(Millions of yen)
Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)

Fiscal year ended
March 31, 2008
(April 1, 2007 –March 31, 2008)
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Deferred gains or losses on hedges
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period- 13 -

168,234

179,629

11,394
11,394
179,629(74,199)(74,199)
105,430

55

(0)

(56)

－

(56)

－

(0)

(0)

707

716

9
9
716

(5,182)(5,182)(4,465)

168,997

180,346

11,348
11,348180,346(79,381)(79,381)
100,964

8,234

8,373

138
138
8,373

(888)
(888)
7,484

418,929448,226(2,286)20,097(1)
11,48729,297448,226(2,286)
12,560(2)(80,270)(69,998)378,227

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)

Fiscal year ended
March 31, 2008
(April 1, 2007 –March 31, 2008)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Impairment loss

26,305
16,669－17,10821,521
2,312
1,014
2,964

1,578

1,805

(0)
(161)

(26)
459

(96)

47

602

1,870

(2,005)(2,092)(6,791)313(7,077)
494

(395)

－

191

－

－
1,029

Amortization of goodwill
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
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for cost ofabandonment
Increase (decrease) in allowance for overseas
investment loss and provision for loss on business of
subsidiaries and affiliates
Interest and dividends income
Interest expenses
Gain on redemption and sales of short-term and longterm investment securities
Loss on redemption and sales of short-term and longterm investment securities
Loss (gain) on redemption of securities－

81

Loss (gain) on redemption of investment securities－

39

Loss (gain) on sales of short-term and long term
investment securities
Equity in (earnings) losses of affiliates
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other, net
Subtotal
Proceeds from collection of claim for indemnity of debt
guarantee
Other proceeds

－

(57)

(2,193)270(1,161)8,511(1,808)
5,962
332
2,976
41,345(517)(11,410)
(383)
4,966
41,901

1,568

1,134

－
(8,599)34,314191(6,845)36,381

Income taxes (paid) refund
Net cash provided by (used in) operating activities- 14 -

(Millions of yen)
Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)

Fiscal year ended
March 31, 2008
(April 1, 2007 –March 31, 2008)
Net cash provided by (used in) 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
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Payments of loans receivableCollection of loans receivable
Interest and dividends income received
Proceeds from dividends of residual property
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Interest expenses paid
Payment of dividends in liquidation of subsidiary to
minority shareholders
Other, net
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- 15 -(8,096)
10,934
1,078(43,702)7(613)(21,808)(8,306)2,572
2,246(28,012)20(593)(2,607)

7,573

9,039

(7,929)
340
7,532
2
1,510
(53,169)(6,064)
312
7,607
－
442
(23,342)

6,935(2,278)(1)(2,285)
(306)
(231)

6,014
(2,278)(2)(2,284)(1,387)
(514)

(310)

－

－

(25)

1,522

(477)

(426)

(3,025)(17,758)
60,19942,4409,534
42,44051,975

IV. Others
Status of Production and Sales
1. Production
Oil and Natural Gas Segment
Division

Product

Fiscal year ended March 31, 2008
(April 1, 2007 –March 31, 2008)

Fiscal year ended March 31, 2009
(April 1, 2008 –March 31, 2009)

761,636

748,022(147,397)(136,632)

1,288,606

1,286,621(58,946)(57,843)

33,61046,796410,363

416,369(410,363)(416,369)

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 heavy crude oil extracted from oil sands.

2. SalesOil and Natural Gas Segment

Division

E&P

Product

Fiscal year ended March 31, 2008
(April 1, 2007 –March 31, 2008)
AmountVolume(Millions of yen)

Fiscal year ended March 31, 2009
(April 1, 2008 –March 31, 2009)
AmountVolume(Millions of yen)

Crude oil (kl)

2,041,192

117,923

1,919,959

102,845Natural gas (thousand m3)

1,486,910

48,982

1,485,961

54,126

LNG (t)170,453

10,285

177,401

13,412

Bitumen (kl)409,743

10,468417,423

13,087

Subtotal

187,660

183,471

Contract services

5,395

4,739

Other businesses

14,582

13,916

207,638

202,127

Total

Notes: 1. Other Businesses Division is primarily involved in the sale of oil products, including liquefied petroleum gas(LPG) and fuel oil, as well as transportation of natural gas and oil products on consignment.
2. Monetary amounts in the table do not include consumption tax.

- 16 -