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

Financial Results

for the Three Months Ended June 30, 2020

August 11, 2020

Japan Petroleum Exploration Co., Ltd.
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Financial Highlights : 1Q Results and Full Year Forecasts
FY20/3

FY21/3Full year(a)②

1Q (a)
③

93.2

318.8

51.0

Operating profit (loss)

4.6

14.2

Ordinary profit (loss)

8.9

Profit (loss) attributable toowners of parent

8.9

Billion Yen

Full year(f)Revisedforecasts(Aug 11, 2020)

1Q
（③-①）

Full year（⑤-②）

Full year
（⑤-④）

223.6

219.9

-42.2

-98.8

-3.7

-5.2

-8.2

-7.7

-9.8

-22.0

+0.4

32.6

-9.5

-2.1

-5.4

-18.4

-38.0

-3.2

26.8

-9.5

-3.1

-6.5

-18.4

-33.3

-3.3

68.77

68.11

44.41

40.00

40.80

-24.36-27.31+0.80

111.11109.15108.04108.00108.01

-3.07

-1.14

+0.01

1Q (a)①

Net sales

Full year(f)ChangeInitial forecasts(May 14, 2020)④⑤*

Oil price and exchange rate assumptions
Crude oil price (CIF) (USD/bbl)
Exchange rate

(JPY/USD)*JAPEX announced the latest forecasts by “Notice of Financial Forecasts Revision” on August 11, 2020, regarding the consolidated financial forecasts of the
fiscal year ending March 31, 2021
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

2

Financial Results
for the Three Months Ended
June 30, 2020

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

3

E&P Business Sales for 1Q FY3/21 (Year-on-Year)
FY20/3 1Q(a)Net sales：Million Yen

FY21/3 1Q(a)SalesvolumeNet sales

Sales
volume-54,133891

ChangeNet sales

Sales volume-

22,904-42,717687

15,936

-203

79

3,997

60

1,800

465

21,737168

4,393

Purchased crude oil

346

16,982458

Diluted bitumen*2

402

10,689108726

E&P Business-Net sales-①-31,228

-57%

-22%

-26,780

-62%

-18

-23%

-2,197

-54%

-296

-63%

-17,343

-79%

9,742

+112

+32%

③

-7,239

-42%

410

6,258

+8

+2%

④

-4,431

-41%

111

709

+2

+2%

-16

-2%

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

Natural Gas- Overseas＊3

Thousand KL

Million M3②

Comments on main factors for change①Decrease in sales volume and price of crude oil (overseas), and decrease in sales price of purchased crude oil anddiluted bitumen②Decrease in sales volume and price of crude oil from Garraf Oil Field in Iraq
③Decrease in sales price④Decrease in sales price of diluted bitumen from the Hangingstone Lease in Canada*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

4

I/U Business Sales for 1Q FY3/21 (Year-on-Year)
FY20/3 1Q(a)Net sales：Million Yen

Infrastructure &Utility Business

Sales
volume-FY21/3 1Q(a)Net sales

Sales
volumeChangeNet sales

Sales volume--

23,171-

20,997267

14,846248

12,798Net sales-①-2,174-9%-2,048-13%

Breakdown
Natural Gas- JapanMillion M3- Produced in Japan
LNG

Thousand Ton

Electricity

Million kWh

Others*1

-

②

-18

-6%

-28

-20%

-57

-51%

137

-

109

-

111

7,501

53

3,597

③

1

40

448

3,493

④ +447 +43,890%

783

-

1,108

-

-

-

-

-

-3,903-52%+3,452 +8,445%
+324

+41%

Comments on main factors for change①Decrease in LNG sales volume, and decrease in natural gas (Japan) sales price and volume②Decrease in natural gas (Japan) sales price, and decrease in natural gas sales volume mainly owing to the stagnation of theeconomy caused by COVID-19③Decrease in sales volume④Growth in electricity sales volume owing to the start of commercial operation of the Fukushima Natural Gas Power Plant*1 Include net sales from commissioned regasification of LNG

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

5

1Q FY3/21 Results (Year-on-Year)
Comments on main factors for change
Increase factor “+” / Decrease factor “( )”Million Yen

FY20/3
1Q (a)

FY21/3
1Q (a)Net sales

93,25251,018-42,233-45%

Gross profit

12,440

2,399-10,040

-80%

217

206

-10

-4%

SG&A expenses

7,605

7,443

-162

-2%

Operating profit(loss)

4,617-5,250-9,867-%

Non-operating
income4,292-4,325-8,617-%

Ordinary profit (loss)

8,909-9,575-18,484-%

Exploration expenses

Extraordinary income(loss)

Change

-4

-3

+1

-%

Income taxes

-206

173

+379

-%

Profit (loss)
attributable to noncontrolling interests

159

-215

-375

-%

Profit (loss)
attributable toowners of parent

8,951-9,536-18,488-%

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

6

Operating profit(loss)
Japan*
Overseas(¥4.8 bn.)(¥5.0 bn.)Non-operating income
Foreign currency translation adjustments on debt
(FY3/20) Gains of ¥1.0 bn. → (FY3/21) Loss of ¥5.8 bn.

Dividend income(¥6.9 bn.)(¥1.6 bn.)

*Sum of segment profit for Japan and G&A / R&D expenses
which are not attributable to any of the segment

Revised Financial Forecasts
for the fiscal year ending
March 31, 2021

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

7

Prerequisite for FY3/21 Forecasts
2020

WTI

USD/bblCrude oil price(CIF)

USD/bblExchange rate

JPY/USD

2021

Full year

Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

Initial

46.17

35.00

35.00

35.00

-

37.72

Revised46.17*

28.02*

36.70

35.00

-

37.55

Initial

-

40.00

40.00

40.00

40.00

40.00

Revised-44.41*

40.00

40.00

40.00

40.80

Initial-108.00108.00108.00108.00108.00

Revised-108.04*108.00108.00108.00108.01

Initial

22.45

19.34

20.08

20.04

-

20.52

Revised22.30*

11.81

23.26

21.43

-

20.58

Initial

2.14

1.80

1.80

1.80

-

1.88

Revised

2.36*

1.87

1.78

2.05

-

2.01

Sales Price
JACOS
Diluted bitumen**

JML
Natural gas***

USD/bbl

CAD/mcf*
Actual** Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*** Natural Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

8

E&P Business Sales Forecasts for FY3/21 (vs Initial Forecasts)
Initial(f)May 14, 2020

Net sales：Million Yen

Revised(f)Aug. 11, 2020

ChangeSales
volumeNet sales

Sales
volume-74,618-84,380-1,797

50,666

2,529

63,772

+732

318

8,597

320

8,980

90

2,406

709

16,859Purchased crude oil

1,390

39,662

1,500

37,933

Diluted bitumen*2

1,520

21,191

1,273

17,808

506

2,762

499

2,800

E&P Business-

Sales volume

Net sales

Net sales-①+9,761+13%+41%+13,106

+26%

+2

+1%

+383

+4%

+619

+690%

+14,452

+601%

+111

+8%

-1,729

-4%

-247

-16%

-3,383

-16%

-7

-1%

+38

+1%

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

Natural Gas- Overseas＊3

Thousand KL

Million M3②③

Comments on main factors for change①Growth in sales volume of crude oil (overseas)②Growth in sales volume of crude oil from Garraf Oil Field in Iraq owing to resumption of production③Decrease in sales volume of diluted bitumen from the Hangingstone Lease in Canada owing to the deteriorated
market conditions*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

9

I/U Business Sales Forecasts for FY3/21 (vs Initial Forecasts)
Initial(f)May 14, 2020

Net sales：Million Yen

Infrastructure &Utility Business-

Revised(f)Aug. 11, 2020

Sales
volumeNet sales

Sales
volume-102,189

1,229

55,458ChangeNet sales

Sales volume

Net sales-

91,726-

1,126

49,331② -103

-8%

-31

-6%

-

① -10,463-10%-6,128-11%

Breakdown
Natural Gas- JapanMillion M3- Produced in Japan

514

-

483

Thousand Ton

301

18,493291

15,797-10-3%

Electricity

Million kWh

2,763

22,8352,868

22,055+105

Others*1

-

-

5,402

-

4,543

-

LNG

-

-

-

-2,696

-15%

+4%

-780

-3%

-

-859

-16%

③

Comments on main factors for change①Decrease in natural gas (Japan) sales volume and price, and decrease in LNG sales price②Decrease in natural gas (Japan) sales volume and price mainly owing to the stagnation of the economy caused by COVID-19③Decrease in sales price*1 Include net sales from commissioned regasification of LNG

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

10

FY3/21 Forecasts (vs Initial Forecasts)
Comments on main factors for change
Increase factor “+” / Decrease factor “( )”Initial(f)May 14, 2020

Revised(f)Aug. 11, 2020

Net sales

223,685

219,923-3,762-2%

Gross profit

24,99623,962-1,034

-4%

988

1,056

+68

+7%

SG&A expenses

32,23030,670-1,560-5%Operating profit(loss)-8,222-7,763+459-%

Non-operating
income

6,083

2,334

-3,749-62%

Ordinary profit (loss)-2,139-5,429-3,290-%Extraordinary income(loss)

-29

-29

+0

-%

Income taxes

1,853

1,778

-75

-4%

Profit (loss)
attributable to noncontrolling interests

-828

-719

+109

-%

Profit (loss)
attributable toowners of parent-3,193-6,517-3,324-%

Million Yen

Exploration expenses

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Change11

Operating profit(loss)
Japan
Overseas(¥1.3 bn.)+¥1.8 bn.

Non-operating income
Equity on earnings+¥0.6 bn.
Foreign currency translation adjustments on debt(¥3.6 bn.)
Decreased in dividend income(¥1.2 bn.)
Decreased in interest expenses+¥1.0 bn.

E&P Business Sales Forecasts for FY3/21 (Year-on-Year)
FY20/3(a)Net sales：Million Yen

FY21/3 Revised(f)ChangeSales
volumeNet sales

Sales
volume-175,443-

84,380-2,924

128,1522,529

63,772-395

304

14,800

320

8,980

1,123

45,372709

16,859Purchased crude oil

1,496

67,9791,500

37,933

Diluted bitumen*2

1,639

45,025

1,273

17,808

431

2,265

499

2,800

E&P Business-

Sales volume

Net sales

Net sales① -91,064

-52%

-14%

-64,381

-50%

+15

+5%

-5,820

-39%

-414

-37%

-28,514

-63%

+4

+0%

-30,046

-44%

-366

-22%

-27,218

-60%

+67

+16%

+535

+24%

-

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

Natural Gas- Overseas＊3

Thousand KL

Million M3②④

Comments on main factors for change①Decrease sales price and volume of crude oil (overseas) and diluted bitumen②Decrease in sales volume and price of crude oil from Garraf Oil Field in Iraq
③Decrease in sales price④Decrease in sales volume and price of diluted bitumen from the Hangingstone Lease in Canada*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

12③

I/U Business Sales Forecasts for FY3/21 (Year-on-Year)
FY20/3(a)Net sales：Million Yen

Infrastructure &Utility Business

Sales
volume-FY21/3 Revised(f)Net sales

Sales
volume-88,688-

1,268

64,965

1,126

ChangeNet sales

Sales volume

91,726-

Net sales-①+3,037+3%-15,635-24%

Breakdown
Natural Gas- JapanMillion M3- Produced in Japan

582

-

483

-

15,797

Thousand Ton

273

19,395291

Electricity

Million kWh

110

974

2,868

Others*1

-

-

3,353

-

LNG

49,331 ②

-143

-11%

-100

-17%

+18

+7%

22,055 ④ +2,758 +2,503%
4,543

-

-

-

③

-3,598--19%+21,081 +2,164%+1,189+35%

Comments on main factors for change①Growth in electricity sales volume②Decrease in natural gas (Japan) sales price, and decrease in natural gas sales volume in Japan mainly owing to thestagnation of the economy caused by COVID-19③Decrease in sales price④Growth in electricity sales volume owing to the start of commercial operation of the Fukushima Natural Gas Power Plant*1 Include net sales from commissioned regasification of LNG

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

13

FY3/21 Forecasts (Year-on-Year)
Million Yen

FY3/20(a)FY3/21
Revised (f)Comments on main factors for change
Increase factor “+” / Decrease factor “( )”ChangeNet sales

318,822219,923-98,899-31%

Gross profit

47,042

23,962-23,080

-49%

893

1,056

+162

+18%

SG&A expenses

31,86430,670-1,195-4%

Operating profit(loss)

14,283-7,763-22,047-%

Non-operating
income18,351

2,334-16,017-87%

Ordinary profit (loss)

32,635-5,429-38,064-%

Extraordinary income(loss)

-731

-29

+703

-%

Income taxes

4,788

1,778

-3,011

-63%

299

-719

-1,019-%26,815-6,517-33,332-%

Exploration expenses

Profit (loss)
attributable to noncontrolling interests
Profit (loss)
attributable toowners of parent

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

14

Operating profit(loss)
Japan
Overseas(¥5.6 bn.)(¥16.4 bn.)Non-operating income
Equity on earnings(¥6.5 bn.)
Foreign currency translation adjustments on debt
(FY3/20) Gains of ¥2.4 bn. → (FY3/21) Loss of ¥3.6 bn.

Dividend income
Interest income(¥6.0 bn.)(¥2.9 bn.)(¥0.7 bn.)

Extraordinary income(FY3/20) Impairment loss on Amarume Oil Field in Japan+¥0.5 bn.

Sensitivities Analysis on FY3/21 Forecasts Basis (2Q-4Q)

FY3/21
2Q-4Q
Assumptions

Crude oil price

Crude oil price
(CIF)
USD
40.00/bbl

Impacts on profit（Million Yen）
Fluctuation

OperatingprofitNatural gas
price in Canada¥108.00/USD
CAD 1.91/mcf¥78.93/CAD

Main factors for change

Increase factor “+” / Decrease factor “( )”+ Sales of oil and gas

Increase by
1USD/bbl

WTI
USD 33.24/bbl
Exchange rate

Profitattributable toowners ofparent1 weaker yen
against USD

240

210

(Increase in LNG procurement cost)

161

152

+ Sales of diluted bitumen

90

-10

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

Increase by
1CAD/mcf-3

12(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-currency-denominated receivables andpayables also occur. Actual profits are influenced by various other factors besides crude oil prices and exchange rates.

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

15

Appendix
1. Net Sales
2. Financial Results
3. Cash Flows and Financial Ratio
4. Main Business and Major Assets
5. Abbreviations

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

16

1. Net Sales - E&P BusinessMillion Yen

FY3/19(a)Full year

Sales of E&P business

FY3/20(a)1Q

Full year
1Q-4Q

FY3/21(a)FY3/21(f)1Q

Full year
May 14

Aug. 11

127,080

54,133

175,443

22,904

74,61884,380

1,888

891

2,924

687

1,797

2,529

94,57942,717

128,152

15,936

50,666

63,772

261

79

304

60

318

320

13,746

3,997

14,800

1,800

8,597

8,980

366

465

1,123

168

90

709

16,59921,73745,372

4,393

2,406

16,859

1,260

346

1,496

458

1,390

1,500

64,233

16,982

67,9799,742

39,66237,933

1,176

402

1,639

410

1,520

1,273

30,116

10,68945,025

6,258

21,191

17,808

487

108

431

111

506

499

2,384

726

2,265

709

2,762

2,800

Crude oil price (CIF) (USD/bbl)

71.94

68.77

68.11

44.41

40.00

40.80

Exchange rate (JPY/USD)

110.35111.11109.15108.04108.00108.01

Diluted bitumen*2 (USD/bbl)

36.67

37.98

39.85

22.30

20.52

20.58

JML natural gas*4 (CAD/mcf)

1.69

2.28

1.77

2.36

1.88

2.01

Sales volume of Crude oil(Thousand KL)

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

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

Net sales
Sales volume of Purchased crude oil(Thousand KL)

Net sales
Sales volume of Diluted bitumen(Thousand KL)

Net sales*2
Sales volume of Natural gas -overseas*3(Million M3)

Net sales*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)*4 Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

17

1. Net Sales – I/U BusinessMillion Yen

FY3/19(a)Full year

Sales of Infrastructure/Utility business

FY3/20(a)1Q

Full year
1Q-4Q

FY3/21(a)FY3/21(f)1Q

Full year
May 14

Aug. 1191,76823,171

88,68920,997102,189

91,726

1,243

267

1,268

248

1,229

1,126

65,435

14,84664,965

12,79855,45849,331

630

137

582

109

514

483

322

111

273

53

301

291

22,9137,501

19,395

3,597

18,493

15,797

2

1

110

448

2,763

2,868

Net sales

112

40

974

3,493

22,83522,055

Others*1

3,306

783

3,353

1,108

5,402

4,543

sales volume of Natural gas – Japan(Million M3)

Net sales
Sales volume of natural gas
Produced in Japan(Million M3)
Sales volume of LNG(Thousand ton)

Net sales
Sales volume of Electricity(Million kWh)

*1 Include net sales from commissioned regasification of LNG

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

18

2. Financial Results
Million Yen

FY3/19(a)Full year

Net sales

FY3/20(a)1Q

Full year
1Q-4Q

FY3/21(a)FY3/21(f)1Q

Full year
May 14

Aug. 11

267,980

93,252

318,82251,018

223,685

219,923

E&P business

127,080

54,133

175,443

22,904

74,61884,380Infrastructure/Utility business

91,76823,171

88,68920,997102,189

91,726

Others49,131

15,94854,6917116

46,87843,818

Cost of sales

233,133

80,812271,780

48,619198,689

195,961

Gross profit

34,846

12,44047,042

2,399

24,99623,962

788

217

893

206

988

1,056

SG&A expenses

31,743

7,605

31,864

7,443

32,23030,670Operating profit (loss)

2,313

4,617

14,283-5,250-8,222-7,763Non-operation income

10,2094,292

18,351-4,325

6,083

2,334

Interest income

1,598

307

1,096

216

641

363

Interest expenses-4,130-1,237-4,641-972-3,723-2,685

Dividend income

2,102

1,649

5,618

49

3,964

2,709

12,5502,390

11,960

2,116

4,848

5,444

Provision for overseas investment

358

85

342

85

342

342

Foreign exchange gains and loss

-5,296

1,099

2,425

-5,809--3,654

Other

3,027

-3

1,550

-10

11

-185

12,523

8,909

32,635-9,575-2,139-5,429

550

-4

-731

-3

-29

-29

Profit (loss) before income taxes

13,074

8,905

31,903-9,578-2,168-5,458

Income taxes-1,254

-206

4,788

173

1,853

1,778

-441

159

299

-215

-828

-719

14,7708,951

26,815-9,536-3,193-6,517

Exploration expenses

Share of profit of entities accounted forusing equity method

Ordinary profit (loss)
Extraordinary income (loss)

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

19

2. Analysis of 1Q FY3/21 Net Income Result (Year-on-Year)
Billion Yen
JACOS:
Japex Canada Oil Sands Limited (Canada Oil Sands Project)
Japex Garraf: Japex Garraf Ltd. (Iraq Garraf Project)JML:
JAPEX Montney Ltd. (Canada Shale Gas Project)
SODECO:
Sakhalin Oil and Gas Development Co., Ltd. (Russia Sakhalin-1 Project)
EMPI：
Energi Mega Pratama Inc. (Indonesia Kangean Project)
DGN：
Diamond Gas Nethelands B.V.

JACOS
-5.6 bn.
Japex Garraf +0.4 bn.

JML
JACOS

-6.2 bn.
-0.5 bn.

SODECO
EMPI

Operating profit(loss)+9.8 bn.

*-0.8 bn.
+0.7 bn.

Non-operating income(loss) -8.6 bn.

*Sum of segment profit for Japan and G&A / R&D expenses which are not attributable to any of the segment
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

20

2. Analysis of FY3/21 Net Income Forecasts (vs Initial Forecast)Billion Yen

JACOS
JML

+1.1 bn.
+0.5 bn.

JML
Japex Garraf
JACOS-2.6 bn.
-0.6 bn.
-0.3 bn.

SODECO
DGN
EMPI

Operating profit(loss)+0.4 bn.
Non-operating income(loss) -3.7 bn.

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

21+1.6 bn.
-0.5 bn.
-0.2 bn.

2. Analysis of FY3/21 Net Income Forecasts (Year-on-Year)
Billion Yen

JACOS-16.2 bn.

JML
JACOS

-5.6 bn.
-0.6 bn.

SODECO
EMPI

Operating profit(loss) -22.0 bn.

Non-operating income(loss) -16.0 bn.

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

22-7.3 bn.
+1.2 bn.

2. Segment Profit
Million Yen

FY3/19(a)FY3/20(a)Full year

Operating profit

Japan

North
America

MiddleEast

Others*1*1

Full year
1Q-4Q

FY3/21(f)1Q

Full year
May 14

Aug.11

19,308

5,623

18,834790

15,026

13,218

Share of profit of entities
accounted for using equity
method

165

59

152

157

617

362

Operating profit (loss)-9,751

1,311

3,422

-4,223-14,006-12,606

Share of loss of entities
accounted for using equity
method

-10

-

-

-

-

-

-157

-71

-164

-42

-167

-156

-

-

-

-

-

-

955

-169

612

301

-140

230

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

2

-1

-8

-2

-7

-6

Operating loss

-7

-1

-1

-

-

-

12,3922,331

11,816

1,960

4,237

5,087

Operating loss

Europe1Q

FY3/21(a)Share of profit (loss) of entities
accounted for using equity
methodOperating profit (loss)

Share of profit of entities
accounted for using equity
methodInclude the Sakhalin Oil and Gas Development Co., Ltd., Energi Mega Pratama Inc., etc.

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

23

3. Cash Flows and Financial Ratio
Million Yen

FY3/19(a)FY3/20(a)Full year
Cash flows from operating
activities

1Q-2Q

FY3/21(f)Full year
1Q-4Q

Full year
May 14

Aug.1130,97037,061

69,89525,462

27,686

Depreciation

23,296

12,42225,19023,951

22,031

Recoverable cost (Recovery)

11,11826,58341,040-14,154-13,969-11,353-18,701-28,375-29,213Purchase of property, plant andequipment-12,955-2,464-7,566-19,048-16,250

Recoverable cost (Payments)-25,107-13,865-30,226-13,379-16,611

Cash flows from financing
activities-15,493-8,435-13,743-14,160-13,081Interest-bearing debt*1

151,726-

140,848

125,112125,122

EBITDA*2

41,736-58,29623,87522,191

3.6

-

2.4

5.2

5.6

Cash flows from investing
activities

Debt-to-EBITDA ratio*1 Interest-bearing debt includes lease obligations, retirement benefit liabilities and contingent liabilities*2 EBITDA is the total of operating income, depreciation, interest and dividends received on investment cash flow

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

24

4. Business Base - Major Assets in Production & Development

Canada Oil Sands Project
U.K. North Sea Seagull Project Russia Sakhalin-1 Project(Development)(Production / Development)(Production)

Canada Shale Gas Project(Production / Development)

Oil and Gas Fields in Japan
Iraq Garraf Project(Production)

United States Tight Oil Project(Production / Development)(Production / Development)Indonesia Kangean Project(Production)

Assets owned by the JAPEX Group

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

25

4. Japan - E&P and I/U Business
E&P Business – Oil and Gas Fields in Japan

Operating 10 oil and gas fields in Japan
Promoting compensation of current domestic reserves and maintaining the production volume
Pursuing additional E&P potential including national surveys aiming to increase reserves over the mid-long term

●Additional development of domestic oil and gas field• Started production of crude oil from shallow reservoir of Yufutsu Oil and Gas Field in Hokkaido in June 2020

I/U Business - Domestic natural gas supply

Supply natural gas produced in Japan as well as regasified LNG through Company's supply network with LNG terminals
and gas pipelines over 800 km
Supply LNG in liquid form from our LNG receiving base by various methods such as tank trucks, tankers and coastal
vessels
Started commissioned operations of receiving, storing and regasifying LNG, which is used as fuel for Fukushima
Natural Gas Power Plant*1

I/U Business – Electric Power

Fukushima Natural Gas Power Plant started commercial operation of Unit 1 in April 2020. Commercial operation of
Unit 2 is scheduled in summer 2020
Investigating development projects and business opportunities regarding renewable energy, centered on offshore
wind power and biomass●Major renewable energy development projects under consideration• (Tentative) Noshiro/Mitane/Oga offshore wind power generation project• (Tentative) Akita central sea offshore wind power generation project• (Tentative) Yuza offshore wind power generation project*1

Operating management by Fukushima Gas Power Co., Ltd., which is funded by five private companies including JAPEX as abusiness partner (JAPEX share 33%)

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

26

4. Japan - New Business Development
Development Next-generation Technology
Promoting toward commercialization of CCS• CCS demonstration project in the Tomakomai area of Japan CCS Co., Ltd., in which private companies including
JAPEX, is continuing to monitor after the cumulative injection amount of CO2 has reached 300,000 tonsPromoting establishment of survey technology for deep-sea mineral resources• Participating as a member of “the Research and Development Partnership for Next-Generation Technology ofMarine Resources Survey”(J-MARES) in the development and verification project of the rare-earth element
sampling and pumping technology for the "Innovative Technology for Exploration of Deep Sea Resource" in the
Cross-ministerial Strategic Innovation Promotion Program (SIP) Phase 2 of Cabinet OfficePromoting establishment methane hydrate development technology
画像提供：日本CCS調査㈱• Continuing research and development work on resource recovery technology and exploration technology related
to sand layer type methane hydrate through Japan Methane Hydrate Operating Co., Ltd.

Constructing a New Business ModelPromote activities for early realization of LNG bunkering in Japan and overseas• The study meeting on LNG bunkering at Tomakomai Port ended in April 2020 and the summary of study results
was announced• Pursue opportunities for commercialization and business participation centered on our existing activity areas,
along with opportunities to replace ships on regular routes

Continuing promotion of investigations and studies for expansion of various LNG transportation methods in overseas

Identifying Unique Business Seeds
Continuing a study to build a value chain for Sustainable Aviation Fuel (SAF) with used cooking oil as a raw materialSoliciting business ideas from across the Company and regularly examine of ideas brought in by other companies andreview progress

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

27

4. North America - E&P Business
Canada Shale Gas Project

Canada Oil Sands Project
Project

Canada Oil Sands Co., Ltd. (CANOS)

company

JAPEX‘s share 94.58%
Overseas subsidiary：
Japan Canada Oil Sands Ltd. (JACOS)

Block

Hangingstone Leases (Operator)

Interest

75％ (JAPEX net 70.935%)

Block

North Montney Area

Interest

10% (JAPEX net 5.5％ )Continuing flexible operation in line with market
conditions with 20,000bbl/d level bitumen

OperatorproductionGrossproduction
rate

JAPEX Montney Ltd. (JML)

Status

Production
Status

Project
company

Production/Development

Executing the development plan prioritizing thearea with high economics. Working on to maximize
the value and economics of the project.

Petronas Energy Canada Ltd.

Gross production 12,250,000M3/d, Approx. 72,000boe/d
rate
as average of Jan.-Mar. 2020

23,000bbl/d

as average of Jan.-Mar. 2020

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

JAPEX’s share 55％

28

4. Europe/Middle East - E&P Business
Iraq Garraf Project

U.K. North Sea Seagull Project
Project
company

JAPEX UK E&P Ltd.

Block

Seagull Field

Interest

15％ (JAPEX Net 15％)

JAPEX’s share 100％

Operator

Field

Garraf Oil Field

Project share

30% (JAPEX Net 16.5%)

StatusDevelopment work in progress to commencement
production in 2021(Timing of achievement is
unforeseeable under the Covid-19 pandemic
situation)

Neptune E&P UK Limited

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Japex Garraf Ltd. JAPEX’s share 55%

Production* and Development toward
Plateau production target of 230,000 bbl/d**

Development

Status

Project
company

29* Resumed production from mid-July after suspension ofoperations since mid-March 2020**Timing of achievement of the Plateau Production Target
is unforeseeable under the Covid-19 pandemic situation

Operator

PETRONAS Carigali Iraq Holding B.V. (PCIHBV)

Gross
production rate

Approx. 50,000bbl/d

as average at the time of resuming production

4. Other Areas - E&P BusinessIndonesia Kangean Project
Project
company

Energi Mega Pratama Inc.

Block

Kangean Block

Interest

100％ (JAPEX net 25%)

Status

Production

Operator

Kangean Energy Indonesia Ltd.

Gross
production
rate

5,550,000M3/d

Russia Sakhalin-1 Project

JAPEX’s share 25%
2 other affiliates

Approx. 34,000boe/d
as average of Jan.- Mar. 2020

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

30

Project
company

Sakhalin Oil and Gas Development
Co., Ltd. (SODECO)

Block

Chayvo, Odoptu and Arkutun-Dagi
FieldsInterest

30%（JAPEX net 4.59%）

StatusDevelopment/ Production

Operator

Exxon Neftegas Ltd.

JAPEX’s share 15.29%

5. Abbreviations
BOE(D)

Barrels of Oil Equivalent (per Day)

CCS

Carbon dioxide Capture and Storage

CCUS

Carbon dioxide Capture, Utilization and Storage

CIF

Cost, Insurance and Freight

E&P

Exploration and Production

FID

Final Investment Decision

GHG

Greenhouse Gas

HSE

Health, Safety and Environment

IOR (EOR)

Improved (Enhanced) Oil Recovery

I/U

Infrastructure/Utility

JCC

Japan Crude Cocktail

LNG

Liquefied Natural Gas

MH

Methane Hydrate

P/L

Pipeline

ROE

Return on Equity

RRR

Reserve Replacement Ratio

SAF

Sustainable Aviation Fuel

SODECO

Sakhalin Oil & Gas Development Co., Ltd.

TSBTerang, Sirasun, Batur

WCS

Western Canadian Select

WTIWest Texas Intermediate

Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

31

Cautionary Statement
This document contains future outlooks 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 outlooks due to various factors.
This document is not intended to invite investment.
Copyright : All information contained herein is protected by copyright, and may not be
copied or reproduced without prior consent of JAPEX.
Note: Abbreviations used herein are as follows:(a) = Actual results(f) = Forecasts
FY = Fiscal Year (FY3/21, for instance, means 12 months ending March 31, 2021)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:
Corporate Communication Office
Japan Petroleum Exploration Co., Ltd. (JAPEX)Tokyo, JAPANTEL: +81-3-6268-7111
Copyright © 2020 Japan Petroleum Exploration Co., Ltd. All rights reserved.

32