Consolidated Financial Results for the Fiscal Year Ended March 31, 2010
May 14, 2010
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 23, 2010
Scheduled date to commence dividend payments:
June 24, 2010
Scheduled date to file Securities Report:
June 24, 2010
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.
(1)Consolidated financial results for the fiscal year ended March 31, 2010
(April 1, 2009 – March 31, 2010)(Percentages indicate year-on-year changes.)
Consolidated operating results
Net sales

Operating income% Millions of yen

Ordinary income

Net income

Fiscal year ended

Millions of yen% Millions of yen

March 31, 2010

179,752(11.1)

13,119 (34.7)

23,206

March 31, 2009

202,127(2.7)

20,09022,358 (17.9)

2.4% Millions of yen
3.8

17,939%42.8

12,560 (37.5)

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, 2010

313.88

–

4.7

4.5

7.3

March 31, 2009

219.77

–

3.1

4.0

Reference: Equity in net income (loss) of non-consolidated subsidiaries and affiliates:
yen

(2)

9.9

FY2010 1,059 million yen

FY2009 -270 million

Equity ratio

Net assets per share

Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen%

Yen

As of March 31, 2010

521,009398,74775.0

6,839.05

As of March 31, 2009

500,444378,22774.1

6,486.85

Reference: Equity(3)

As of March 31, 2010: 390,870 million yen

As of March 31, 2009: 370,743 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, 2010

38,948(29,300)(4,054)57,645

March 31, 2009

36,381(23,342)(477)

51,975-1-

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, 2009

–

20.00

–

20.00

40.00

2,286

18.2

0.6

Fiscal year ended
March 31, 2010

–

20.00

–

20.00

40.00

2,286

12.7

0.6

Fiscal year ending
March 31, 2011
(Forecast)

–

20.00

–

20.00

40.00

Record date

3.

22.3

Consolidated financial forecasts for the fiscal year ending March 31, 2011 (April 1, 2010 - March 31, 2011)(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, 2010

91,123

29.1

4,185

46.1

5,231

0.9

2,143

(38.7)

37.49

Fiscal year ending March
31, 2011

196,891

9.5

13,2671.1

14,908(35.8)

10,265(42.8)

179.60

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 “Significant matters forming the basis of preparing
the consolidated financial statements”)
a. Changes due to revisions to accounting standards and other regulations: Yes
b. Changes due to other reasons: Yes(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, 2010
57,154,776 shares
As of March 31, 2009
57,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2010
1,961 shares
As of March 31, 2009
1,783 shares-2-Reference: Summary of non-consolidated results1.
(1)

Non-consolidated financial results for the fiscal year ended March 31, 2010
(April 1, 2009 – March 31, 2010)(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, 2010

131,082(16.9)

11,150 (14.5)

23,500(7.6)

18,370(1.1)

March 31, 2009

157,818(8.0)

13,037 (29.8)

25,445

43.5

18,571

30.1

Net income per
share

Diluted net
income per share

Fiscal year ended

Yen

Yen

March 31, 2010

321.42–

March 31, 2009

324.95–(2)% Millions of yen

Net income% 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, 2010

478,514368,15176.9

6,441.53

As of March 31, 2009

466,550

350,991

75.2

6,141.26

Reference: Equity

As of March 31, 2010: 368,151 million yen

As of March 31, 2009: 350,991 million yen* 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, 2011, 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, 2010, the Japanese economy continued to be beset byincreasingly stringent conditions with drastic deterioration of employment conditions and an extremely large
drop in corporate earnings at the beginning of the fiscal year. A partial recovery emerged as summer began
and, by the end of the fiscal year, corporate earnings and other indicators had improved overall, however, theeconomy is still severe as shown in some indicators such as unemployment rate stayed at a high level.
Although the Japan Crude Cocktail (JCC) price was a low mid-$40 per barrel at the beginning of the fiscal
year, by summer, it had risen to about $70 followed by some slight fluctuations, however, it was just shy of$80 at the end of the fiscal year.
In the area of FOREX, the yen’s value against the US dollar started from the upper ¥90 range at the beginningof the fiscal year rising gradually to about ¥90 between early autumn and fiscal year-end.
As a result, the JAPEX Group’s crude oil prices fell significantly compared to the previous fiscal year despitea certain degree of recovery in JCC prices from the low levels of the second half of the previous fiscal year tothe beginning of the fiscal year under review.
In addition, the market environment of natural gas was quite a detriment for the Group as demand continued
to wane on the heels of an ever worsening economy despite the implementation of the feedstock costadjustment system for mixed supply of domestic natural gas and imported LNG with resulted in the partial
revision of our natural gas pricing system.
Given this environment, the JAPEX Group endeavored to secure production and transportation, and focusedon efficient E&P in Japan and overseas toward achieving a stable, long-term supply of energy essential fordaily life.
During the fiscal year under review, net sales was at ¥179,752 million, a decrease of ¥22,374 million(-11.1%) year on year, as gross profit decreased by ¥13,394 million (-19.8%) year on year to ¥54,285 million.
The main factors behind the year-on-year falls in both net sales and gross profit include not only drops incrude oil and bitumen prices, but also decreased income as a result of the expiry of the commercial
production period of consolidated subsidiary Japex New Nanhai Ltd., which had been producing crude oil in
China.
Exploration expenses decreased by ¥4,956 million (-32.3%) year on year to ¥10,396 million, mainly due tothe decrease in exloration expenses both in Japan and in the Philippines, despite the increases in the
expenditures for exploratory drilling activities and geological evaluations in Libya and Canada. Selling,
general and administrative expenses declined by ¥1,467 million (-4.6%) year on year to ¥30,769 million as aresult of a fall in the special petroleum gain levy in China following the expiry of the commercial production
period of Japex New Nanhai Ltd. As a result of the above, operating income decreased by ¥6,971 million(-34.7%) year on year to ¥13,119 million.
Ordinary income was ¥23,206 million, ¥848 million increase (+3.8%) year on year due to increases in
dividends income and other of non-operating income as well as decreases in loss on valuation of securities,
provision for cost of abandonment and foreign exchange losses. The rise in other of non-operating income
mainly resulted from a turnaround from equity in losses of affiliates to equity in earnings of affiliates.
Please note that, because of the increase in the importance of Diamond Gas Netherlands B.V., an affiliate of
JAPEX, it is included in the scope of equity-method affiliates from the fiscal year under review.
Income before income taxes and minority interests was ¥23,368 million, a ¥6,260 million increase (+36.6%)
year on year thanks to factors such as posting gain on change in equity to extraordinary income occurring as aresult of the issuance of new shares after the listing of Japan Drilling Co., Ltd., an equity-method affiliate of
JAPEX, as well as the decreases in loss on retirement of noncurrent assets and impairment loss.
Net income was ¥17,939 million, ¥5,378 million increase (+42.8%) year on year due to an increase in income
taxes and others.

-4-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 under review, this Division posted net sales of ¥148,604 million, down ¥34,867 million (-19.0%) year on
year, mainly due to drops in crude oil and bitumen prices and the expiry of the commercial production periodof Japex New Nanhai Ltd. and a decrease in the sales amount of crude oil traded from Sakhalin Oil & Gas
Development Co., Ltd. (SODECO).
(ii) Contract Services Division
The Contract Services Division is primarily involved in drilling and geophysical surveys. During the fiscal
year under review, it recorded net sales of ¥4,859 million, up ¥119 million (+2.5%) 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 under review, this Division posted net sales of ¥26,289 million, up¥12,373 million (+88.9%) year on year, partly because Japex Energy Co.,Ltd., which is mostly involved in
the sale of oil products, became a consolidated subsidiary of JAPEX.
Outlook for the fiscal year ending March 31, 2011
Our forecast is based on a JCC price of $80 per barrel and an exchange rate of ¥90/$. Actual
non-consolidated results for the fiscal year under review came to $67.50 per barrel and ¥92.74/$.
Net sales for the fiscal year ending March 31, 2011 is expected to increase by ¥17,138 million (+9.5%) fromthe previous fiscal year to ¥196,891 million. We project natural gas sale to go up thanks to increases in sales
volume and prices resulting from a recovery in demand at industrial users and local distribution company.
Sales of crude oil are expected to increase as crude oil prices go up.
Operating income is expected to increase by ¥148 million (+1.1%) year on year to ¥13,267 million due tohigher exploration expenses despite the increases in the net sales.
Ordinary income is expected to decrease by ¥8,299 million (-35.8%) year on year to ¥14,908 million due todecreases such as in dividends income.
Net income is expected to decrease by ¥7,675 million (-42.8%) year on year to ¥10,265 million due to a
projected extraordinary loss resulting from the application of the “Accounting Standards for Asset Retirement
Obligations.”(2) Analysis of financial condition
a. Balance sheet
Total assets at the end of this fiscal year stood at ¥521,009 million, an increase of ¥20,565 million (+4.1%)
year on year. Of this, current assets increased ¥8,449 million (+8.7%) to ¥105,569 million, and noncurrent
assets jumped ¥12,115 million (+3.0%) to ¥415,439 million.
The primary change in current assets is increases such as in short-term loans receivable based on gensaki
transactions (included in other of current assets at the end of the previous fiscal year) and in short-term
investment securities from the purchase of MMF, etc., despite decreases in cash and deposits.
In noncurrent assets, property, plant and equipment increased ¥1,998 million (+1.4%). The factors for
decrease such as depreciation expenses were smaller than the factors for increase such as drilling of two
production wells at the Yufutsu oil and gas field in Hokkaido along with the increase in production facilities
at the Katakai gas field in Niigata. Intangible assets increased ¥3,058 million (+69.6%) thanks mainly to ouracquisition of E&P right relating to the Garraf oil field in the Republic of Iraq. Investments and other assets
increased ¥7,059 million (+2.8%) as a result of factors such as the purchase of corporate bonds and increases
such as in investment securities in connection with a revaluation of the market value of the stock of INPEXCORPORATION and in long-terms loans receivable extended to Kangean Energy Indonesia Ltd. (KEI) and
EMP Exploration (Kangean) Ltd. (EMPE), both equity-method affiliates.
-5-

Total year-end liabilities increased ¥45 million (+0.0%) year on year to ¥122,261 million due to higher
deferred tax liabilities and provision for retirement benefits despite decreases in notes and accounts
payable-trade and long-term loans payable.
Total year-end net assets increased ¥20,519 million (+5.4%) year on year to ¥398,747 million as a result of
increases in retained earnings as well as in valuation difference on available-for-sale securities and in foreign
currency translation adjustment.
As a result, the equity ratio at March 31, 2010 was 75.0%.
b. Cash flows
As of March 31, 2010, cash and cash equivalents (hereinafter, “net cash”) totaled ¥57,645 million, up ¥5,669
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 ¥38,948 million. This is mainly attributable to ¥23,368 million
in income before income taxes and minority interests and ¥23,237 million in depreciation and amortization.
(Net cash provided by (used in) investing activities)
Net cash used in investing activities amounted to ¥29,300 million. This is because the main uses, namely¥29,074 million for purchase of property, plant and equipment, as iterated above, ¥4,519 million for purchaseof intangible assets and ¥14,892 million for payments into time deposits, exceeded increasing factors such as¥10,368 million in proceeds from withdrawal of time deposits and ¥10,523 million in interest and dividends
income received.
(Net cash provided by (used in) financing activities)
Net cash used in financing activities amounted to ¥4,054 million. This was because the amount of proceedsfrom long-term loans payable of ¥1,934 million for the procurement of funds to be directed for investment in
KEI and EMPE were exceeded by 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

2006

2007

2008

2009

2010

Equity ratio (%)

72.5

71.0

70.8

74.1

75.0

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

78.9

87.1

60.7

45.3

52.0

Interest-bearing debt to cash flow ratio (years)

0.5

0.6

0.7

0.8

0.7

188.1

323.3

148.5

70.7

117.2

Interest coverage ratio (times)

Equity ratio: Equity/total assets
Equity ratio on mark-to-market basis: Total market capitalization/total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/cash flows
Interest coverage ratio: Cash flow/interest paid
Notes:*1. The above indicators are calculated based on consolidated financial figures.
*2. Total market capitalization is calculated based on the number of shares outstanding (excluding treasury 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
JAPEX’s basic policy is to sustain stable dividends over the long term. Taking into account the medium andlong-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-6-

share year-end dividend) is planned for the current year. The same dividend of ¥40 per share (¥20 per shareinterim dividend and ¥20 per share year-end dividend) is planned for the following year as well.

II. Business policies(1) Fundamental business policies
Since its establishment in 1955, JAPEX has pursued its mission of contributing to Japan’s energy supplies by
securing reserves and expanding production centered on the exploration, development, and sale of oil andnatural gas. Guided by this mission, JAPEX has steadily discovered oil and natural gas reserves to result inthe 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 2008, we have witnessed drastic changes in ourbusiness environment such as inevitable and significant drop in JAPEX’s results attributable to the global
financial crisis brought on by the U.S. sub-prime housing loan problem as well as the high yen and plunge ininternational crude oil prices on the heels of a simultaneous worldwide economic downturn. In response tosuch changes, JAPEX will steadfastly continue the abovementioned three activities as core businessobjectives, and, in the first half of business plan period, we will work towards improving earnings by
postponing some domestic exploration projects and reducing expenses, among other initiatives, and makeproactive investments with the aim of enlarging our profit base in the latter years of the business plan period
and beyond during which we expect the economic climate to recover to a certain degree.
For more details, please refer to the following.
http://www.japex.co.jp/english/pdf/2009/JAPEX_Presentation_E_20090515.pdf“Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2009”-7-

During the fiscal year under review, despite a certain degree of recovery in oil prices, uncertainty remains in
the business environment, therefore, JAPEX will continue to promote the aforementioned mid- to long-termbusiness policies and strive to maximize business value by promoting existing projects including newly
acquired rights and interests overseas while strengthening our human resource development and the systemby which human resource capabilities are acquired.
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, 2009
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment 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
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
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total 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
Total investments and other assets
Total noncurrent assets
Total assets-9-

As of March 31, 2010

27,702
17,05011,510
4,255
553
6,200
1,315
–
28,543(12)
97,12024,314
19,774
17,669
4,632
386
5,398
1,336
28,534
3,532(10)
105,569

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

148,591(97,743)
50,84867,143(47,830)
19,312
106,870(59,330)
47,53914,955
7,263
15,130(10,284)4,846
144,765

1,063
3,328
4,392

–
7,450
7,450

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

246,141
15,377
–
1,332
6,211
(46)
(5,793)
263,223
415,439
521,009(Millions of yen)
As of March 31, 2009
Liabilities
Current liabilities
Notes and accounts payable-trade
Income taxes payable
Provision for directors’ bonuses
Provision for loss on disaster
Other
Total 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
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets- 10 -

As of March 31, 2010

6,508
392
93
188
16,90924,093

5,914
–
104
–
15,96621,98625,325
60,108
5,732
559
5,725

24,471
61,386
6,429
690
6,216

35

–

635
98,123
122,216

1,080
100,275
122,261

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

14,288271,858(10)
286,137

105,430(0)(4,465)100,964
7,484
378,227
500,444

106,89624(2,186)
104,733
7,876
398,747
521,009(2) Consolidated statements of income
Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)
Net sales
Cost of sales
Gross profit
Exploration expenses
Exploration expenses
Exploration subsidies
Total exploration expenses
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Gain on sales of securities
Reversal of provision for loss on business of subsidiaries
and affiliates
Other
Total 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
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of allowance for doubtful accounts
Gain on sales of noncurrent assets
SubsidyGain on change in equity
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Retirement benefit expenses for prior periods
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income

202,127
134,447
67,680- 11 -(Millions of yen)
Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)
179,752
125,467
54,285

16,272(920)
15,352
32,237
20,09010,865(468)
10,39630,76913,119

1,253
5,823
490

720
8,669
264

275

35

1,839
9,682

2,574
12,264

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

291
88
11
890
686
206
2,176
23,206

8
0
191
–
–
199

17
0
–
1,279
242
1,540

2,986
2,312
–
152
5,450
17,108
1,879
1,686
3,565
981
12,560

378
575
265
158
1,378
23,368
4,135
307
4,443
986
17,939(3) Consolidated statements of changes in net assets(Millions of yen)
Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)

Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)
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
Change of scope of equity method
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
Change of scope of equity method
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period- 12 -

14,28814,28814,28814,288245,225

255,499(2,286)
12,560–10,274
255,499(2,286)
17,939706
16,359271,858

(7)

(9)

(2)
(2)
(9)

(0)
(0)
(10)

259,506

269,778(2,286)
12,560–(2)
10,272
269,778(2,286)
17,939706(0)16,358286,137(Millions of yen)
Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)

Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)
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
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Change of scope of equity method
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 -

179,629

105,430(74,199)(74,199)
105,430

1,465
1,465
106,896

(0)

(0)

–
–
(0)

24
24
24

716

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

2,278
2,278
(2,186)

180,346

100,964(79,381)(79,381)
100,964

3,769
3,769
104,733

8,373

7,484

(888)
(888)
7,484

391
391
7,876

448,226

378,227(2,286)
12,560–(2)(80,270)(69,998)378,227(2,286)
17,939
706
(0)
4,160
20,519398,747

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)

Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
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 of abandonment
Increase (decrease) in allowance for overseas investment
loss and provision for loss on business of subsidiaries
and affiliates
Interest and dividends income
Interest expenses
Loss (gain) on redemption of securities
Loss (gain) on redemption of investment securities
Loss (gain) on sales of short-term and long term
investment securities
Equity in (earnings) losses of affiliates
Loss (gain) on change in equity
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
Income taxes (paid) refund
Net cash provided by (used in) operating activities
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
Other, net
Net cash provided by (used in) investing activities- 14 -

17,10821,521
2,312
1,014
2,964

23,36823,237
575
1,207
360

1,805

11

(26)
459

(24)
695

47

130

1,870

395

(2,092)(46)(7,077)494
81
39(9,389)
291
(47)

(57)

(176)

270
–

(1,059)(1,279)8,511(2,623)(517)(11,410)
(383)
4,966
41,901

656
(752)
1,214
733
37,482

1,134

–

191
(6,845)36,381–

1,466
38,948(8,306)2,572
2,246(28,012)20(593)(2,607)(14,892)
10,3681,159(29,074)
12(4,519)(5,695)

9,039

5,062

(6,064)
312
7,607
442
(23,342)(2,025)58
10,523(276)(29,300)–

Fiscal year ended
March 31, 2009
(April 1, 2008 –March 31, 2009)
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
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 -(Millions of yen)
Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)

6,014(2,278)(2)(2,284)(1,387)
(514)
(25)
(477)

1,934
(2,278)(0)(2,284)(1,038)(332)(54)(4,054)(3,025)75

9,534
42,44051,975

5,669
51,97557,645

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

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

Product

Fiscal year ended March 31, 2010
(April 1, 2009 –March 31, 2010)

748,022614,401(136,632)(21,556)

1,286,621

1,250,630(57,843)(48,395)

46,79657,599416,369

411,603(416,369)(411,603)

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.
4. The reason for the year-on-year decline in the production volume of overseas crude oil was the expiry in February
2009 of the commercial production period of a consolidated subsidiary Japex New Nanhai Ltd.

2. SalesOil and Natural Gas Segment

Division

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

Product

Crude oil (kl)

1,919,959

102,845

1,714,012

69,308

1,485,961

54,126

1,499,236

55,593

LNG (t)177,401

13,412

186,268

12,268Bitumen (kl)

417,423

13,087411,394

11,4333

Natural gas (thousand m )E&P

Fiscal year ended March 31, 2010
(April 1, 2009 –March 31, 2010)
AmountVolume(Millions of yen)

Subtotal

183,471

148,604

Contract services

4,739

4,859

Other businesses

13,916

26,289202,127

179,752

Total

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

- 16 -