Consolidated Financial Results for the Fiscal Year Ended March 31, 2014
<under Japanese GAAP>May 12, 2014
Note: The following report is a summary of the Japanese-language original.

Company name: Japan Petroleum Exploration Co., Ltd.
Listing:
Tokyo Stock Exchange, First Section
Securities code: 1662
URL:
http://www.japex.co.jp/
President:
Osamu Watanabe
Inquiries:
Shoji Mihara, General Manager, Media and Investor Relations Department
TEL: +81-3-6268-7110 (from overseas)
Scheduled date of ordinary general shareholders’ meeting:June 25, 2014
Scheduled date to commence dividend payments:
June 26, 2014
Scheduled date to file Securities Report:
June 26, 2014
Presentation of supplementary material on financial results:
Yes
Holding of financial results presentation meeting (for institutional investors and analysts): Yes(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.
(1)Consolidated financial results for the fiscal year ended March 31, 2014
(April 1, 2013 – March 31, 2014)
Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Operating income

Millions of yen

March 31, 2014

276,588

19.7

24,63477.1

43,88956.3

29,015–

March 31, 2013

231,086

0.2

13,906(7.6)

28,082

26.7

(865)

–

FY2014: 45,798 million yen (- %)% Millions of yen

Net income

Fiscal year ended

Note: Comprehensive income:% Millions of yen

Ordinary income% Millions of yen%

FY2013: -6,957 million yen (- %)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, 2014507.68

–

7.2

7.4

8.9

March 31, 2013(15.14)

–

(0.2)

5.3

6.0

Reference: Equity in earnings (losses) of affiliates: FY2014: 12,140 million yen(2)

FY2013: 753 million yen

Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2014

663,038

496,91563.7

7,389.62

As of March 31, 2013

525,172

403,62572.8

6,691.58

Reference: Equity

As of March 31, 2014: 422,336 million yen

As of March 31, 2013: 382,441 million yen

-1-

(3)

Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2014

45,226(131,600)

71,680102,830

March 31, 2013

34,254(14,836)(7,177)

112,639

2.

Cash dividends
Annual dividends

Ratio of
Dividend
dividends topayout ratio
net assets(consolidated) (consolidated)First
quarter

Secondquarter

Third
quarter

Fiscalyear-end

AnnualTotalannual cash
dividends

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

Fiscal year ended
March 31, 2013

–

20.00

–

20.00

40.00

2,286

–

0.6

Fiscal year ended
March 31, 2014

–

25.00

–

25.00

50.00

2,857

9.8

0.7

Fiscal year ending
March 31, 2015
(Forecast)

–

25.00

–

25.00

50.00

3.

10.4

Consolidated financial forecasts for the fiscal year ending March 31, 2015 (April 1, 2014 – March 31, 2015)(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,
2014

157,51431.0

14,33924.2

20,1591.3

13,597(14.4)

237.91

Fiscal year ending
March 31, 2015

323,633

17.0

33,07734.3

41,469(5.5)

27,379(5.6)

479.04

*
(1)

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

(2)

Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: Yes
d. Restatement: None(3)

Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2014
57,154,776 shares
As of March 31, 2013
57,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2014
2,139 shares
As of March 31, 2013
2,139 sharesc. Average number of shares during the period
Fiscal year ended March 31, 2014
57,152,637 sharesFiscal year ended March 31, 2013
57,152,637 shares-2-Reference: Summary of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2014
(April 1, 2013 – March 31, 2014)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Operating income% Millions of yen

Ordinary income

Fiscal year ended

Millions of yen

March 31, 2014

207,086

18.6

16,53244.9

32,84134.8

22,909–March 31, 2013

174,604

0.4

11,407

10.2

24,36430.8(8,721)–

Net income per share% Millions of yen

Net income%

Diluted net
income per share

Fiscal year ended

Yen

March 31, 2014

400.85–

March 31, 2013(152.59)–(2)% Millions of yen

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, 2014

486,800

373,58776.7

6,536.67

As of March 31, 2013

453,406

346,74376.5

6,066.97

Reference: Equity

As of March 31, 2014: 373,587 million yen

As of March 31, 2013: 346,743 million yen* Indication regarding execution of audit procedures
At the time of disclosure of this financial results report, the audit procedures for the consolidated financial
statements in accordance with the Financial Instruments and Exchange Act are in progress.
* Proper use of financial forecasts, and other special matters
The forward-looking statements, including the financial forecasts shown in this document are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. As such,they do not constitute guarantees by the Company of future performance. Actual performance and other results
may differ materially from these forecasts due to various factors.
For the suppositions that form the assumptions for financial forecasts and cautions concerning the use thereof,
please refer to the section of “(1) Analysis of operating results” of “1. Analysis of operating results andfinancial position” on pages 4-5 of the attached material to the financial results report.
(Method of accessing supplementary material on financial results)
On May 12, 2014 (Monday), JAPEX plans to post supplementary material on its website.
In addition, JAPEX plans to hold a presentation meeting for institutional investors and analysts on May 13,
2014 (Tuesday). JAPEX plans to post the material distributed at this presentation meeting on its website
promptly after the meeting is held.

-3-

(Attached Material)
1. Analysis of operating results and financial position(1) Analysis of operating results
In the fiscal year ended March 31, 2014, the Japanese economy showed signs of improvement over thesummer season and embarked on a moderate recovery from that time on. At the fiscal year-end, a rush indemand ahead of the consumption tax hike in April 2014 intensified, while there were simultaneous
improvements in corporate earnings and the employment situation, and both developments contributed toconsistently strong economic conditions. Nevertheless, in the near term there are concerns of a fall in demandfollowing the rush ahead of the consumption tax hike.
The Japan Crude Cocktail (JCC) price began the fiscal year in the range between $110 and $120 per barrel
and fell to around the $105 level over the summer. The price rose again after the summer, hovering loosely inthe lower $110 range.
In the currency exchange market, the yen began the fiscal year at around the level of ¥95 against the US
dollar, but after that the trend toward yen depreciation intensified. In December 2013 the yen reached thelevel of around ¥105 against the US dollar before settling down to the lower ¥100 range at the fiscal year-end.
As a result, the JAPEX Group’s crude oil prices for the fiscal year rose compared with the previous fiscalyear.
On the other hand, amid persistently high demand for natural gas, following the Great East Japan Earthquake,procuring liquefied natural gas (LNG) as a basic material remained difficult, particularly in terms of pricing,while industry trends in relation to the development of supply infrastructure continued to move forward. As aresult, the JAPEX Group faced an uncertain market environment.
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 ¥276,588 million, an increase of ¥45,502 million(+19.7%) year on year. Two of the main factors behind the year-on-year increase in sales were an increase insales volume of crude oil from overseas and a rise in sales prices due to the impact of foreign exchange rates.
Gross profit was at ¥66,127 million, an increase of ¥7,117 million (+12.1%) year on year. This was mainly
the result of the aforementioned increases in sales volume of crude oil from overseas and sales prices, inaddition to a decrease in cost of sales due to decreased depreciation.
Exploration expenses decreased by ¥3,285 million (-25.1%) year on year to ¥9,800 million. This was mainly
the result of a considerable decrease in overseas expenditures. Selling, general and administrative expenses
decreased by ¥324 million (-1.0%) year on year to ¥31,692 million. As a result, operating income increasedby ¥10,728 million (+77.1%) year on year to ¥24,634 million.
Ordinary income increased ¥15,806 million (+56.3%) year on year to ¥43,889 million, mainly due to anincrease in share of profit of entities accounted for using equity method, despite a decline in dividend income.
Income before income taxes and minority interests was ¥35,584 million, a ¥42,024 million increase year on
year. This mainly reflected a decrease in impairment loss on business assets for production operation at the
Yufutsu Oil and Gas Field in Hokkaido, which was recorded under extraordinary losses due to a decline inproduction capacity at the said Oil and Gas Field.
Net income was ¥29,015 million, a ¥29,880 million increase year on year. This was the result of an increasein deferred income taxes mainly due to the decline of recording of deferred tax assets in line with the abovementioned posting of impairment loss.

-4-Below is a breakdown of sales.
(i) E&P
Net sales from E&P (including liquefied natural gas (LNG) and bitumen) came to ¥217,157 million, an
increase of ¥39,734 million (+22.4%) year on year. This mainly reflected a sales increase from the start ofcrude oil production at the Garraf oilfield in Iraq and an increase in sales prices due to a substantial swing
towards yen depreciation in foreign exchange rates, which outweighed sales volume declines fordomestically produced crude oil, bitumen and natural gas.
(ii) Contract Services
Net sales from contract services (involved in drilling and geological surveys) came to ¥8,740 million, adecrease of ¥934 million (-9.7%) year on year.
(iii) Other Businesses
Net sales from other businesses, such as the sale of oil products, including liquefied petroleum gas (LPG),
fuel oil and the like, the transportation of natural gas and oil products as well as other subcontracted tasks,
came to ¥50,691 million, an increase of ¥6,703 million (+15.2%) year on year due mainly to an increase insales volume of oil products.
Below is a summary of performance by segment.
(1) Japan
Net sales from the Japan segment are mainly composed of E&P (including LNG), contract services, and oil
products and the like. In the fiscal year under review, net sales was at ¥261,547 million, an increase of¥40,442 million (+18.3%) year on year. This was mainly the result of an increase in sales volume ofpurchased crude oil and an increase in sales prices due to a substantial swing towards yen depreciation inforeign exchange rates, which outweighed sales volume declines for domestically produced crude oil andnatural gas. Segment profit came to ¥31,607 million, an increase of ¥5,592 million (+21.5%) year on year.
This mainly reflected the above-mentioned increase in sales prices, a decline in cost of sales due to decreases
in depreciation and variable costs, and a decline in selling, general and administrative expenses.
(2) North America
Net sales from the North America segment are mainly composed of E&P (including bitumen). In the fiscal
year under review, net sales was at ¥14,668 million, an increase of ¥4,671 million (+46.7%) year on year.
This was primarily the result of yen depreciation at Japan Canada Oil Sands Limited (JACOS) and the
addition of E&P at JAPEX Montney Ltd. In addition, there was segment profit of ¥1,897 million (compared
to segment loss of ¥191 million in the previous fiscal year). This reflected a substantial reduction in
exploration expenses due to the transition to operations following our final investment decision in December
2012 on JACOS’ Hangingstone oil sands project in Alberta, Canada, in addition to the above-mentioned
positive factors due to the increase in net sales.
(3) Middle East
In the Middle East segment, commercial production started at the Garraf oilfield in Iraq in August, anddevelopments are underway at the field with the aim of production increase. In the fiscal year under review,
net sales in this segment was at ¥16,244 million, reflecting the start of crude oil sales. There was segment
profit of ¥2,263 million (compared to segment loss of ¥104 million in the previous fiscal year).
Outlook for the fiscal year ending March 31, 2015
Our forecast is based on a JCC price of $100 per barrel and an exchange rate of ¥100/$. Actual nonconsolidated results for the fiscal year under review came to $110.51 per barrel and ¥99.31/$.
In the fiscal year ending March 31, 2015, net sales is expected to increase by ¥47,044 million (+17.0%) fromthe fiscal year under review to ¥323,633 million. Although we anticipate a decline in net sales due to a fall in
crude oil prices, we expect this to be outweighed by an increase in net sales resulting from a rise in sales
volume of crude oil from overseas.
Operating income is forecast to increase ¥8,442 million (+34.3%) from the fiscal year under review to¥33,077 million. This mainly reflects expectations of a decrease in exploration expenses and an increase inprofit from an increase in crude oil from overseas.

-5-

Ordinary income is forecast to decrease ¥2,420 million (-5.5%) from the fiscal year under review to ¥41,469
million, mainly due to an expected decline in share of profit of entities accounted for using equity method.
Net income is expected to decrease ¥1,636 million (-5.6%) from the fiscal year under review to ¥27,379
million, mainly due to an expected increase in income taxes, despite the anticipated positive effect from theabsence of the impairment loss on business assets for production operation at Yufutsu oil and gas field, which
was posted under extraordinary losses in the fiscal year under review.

(2) Analysis of financial position
a. Balance sheet
Total assets at the end of this fiscal year stood at ¥663,038 million, an increase of ¥137,865 million year on
year mainly due to increase in non-current assets.
The main changes in current assets were decreases in securities and short-term loans receivable based on repo
transactions, despite an increase in cash and deposits.
The main factors for change in non-current assets were as follows. In property, plant and equipment, there
was the recognition of assets relating to a project for the development and production of shale gas in British
Columbia, Canada and an increase in the investments relating to the development of oil sands in the
Hangingstone area in Alberta, Canada. Furthermore, in investments and other assets, there was a rise in thestock prices of INPEX CORPORATION and other companies, and an increase in the investments relating todevelopment of the Garraf oilfield in Iraq.
Regarding liabilities and net assets, total year-end liabilities increased by ¥44,575 million year on year to¥166,123 million, mainly the result of increases in short-term loans payable and accounts payable relating tocapital investment included in other under current liabilities, and total year-end net assets increased by¥93,290 million year on year to ¥496,915 million, mainly due to increases in retained earnings, valuationdifference on available-for-sale securities and minority interests.
b. Cash flows
As of March 31, 2014, cash and cash equivalents (hereinafter, “net cash”) totaled ¥102,830 million, down
¥9,809 million, compared to the end of the previous fiscal year. Below is a summary of cash flows for eachactivity.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥45,226 million. Net cash was mainly provided byincome before income taxes and minority interests of ¥35,584 million, depreciation of ¥15,567 million andrecovery of recoverable accounts of ¥13,749 million, while net cash was mainly used in share of profit ofentities accounted for using equity method of ¥12,140 million and decrease in notes and accounts receivable trade of ¥4,766 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥131,600 million. Net cash was mainly used in purchase ofproperty, plant and equipment of ¥121,283 million and payments of recoverable accounts of ¥20,553 million,
while net cash was mainly provided by interest and dividend income received of ¥13,702 million.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥71,680 million. Net cash was mainly provided by increase in
short-term loans payable of ¥206,318 million and proceeds from share issuance to minority shareholders of¥52,383 million, while net cash was mainly used in decrease in short-term loans payable of ¥178,149 million,
repayments of long-term loans payable of ¥4,816 million and cash dividends paid of ¥2,571 million.

-6-

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

2010

2011

2012

2013

2014

Equity ratio (%)

75.0

74.7

73.7

72.8

63.7

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

52.0

46.1

41.3

40.6

29.6

Interest-bearing debt to cash flow ratio (years)

0.7

0.8

0.9

0.8

1.2

117.2

170.9

197.6

110.9

53.2

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 shares).
*3. Cash flow here is cash flows from operating activities.
*4. Interest-bearing debt is all debt subject to interest payments within liabilities (excluding lease obligations) shown on the
consolidated balance sheet.

(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 in Japan and overseas as an energy company
that plays a role in providing stable supplies of oil and natural gas, which are indispensable for society, thepolicy also takes into account the need for retained earnings to develop, upgrade and improve supply
infrastructure.
Based on the above reasoning, an annual dividend of ¥50 per share (¥25 yen per share interim dividend and¥25 yen per share year-end dividend) is planned for the fiscal year under review. In addition, the same annual
dividend of ¥50 per share (¥25 yen per share interim dividend and ¥25 yen per share year-end dividend) isplanned for the next fiscal year.

(4) Risk Factors
Of the risk factors described in the Company’s latest Annual Securities Report (submitted on June 26, 2013),
in “(1) Business Characteristics, 3. Business Risks, 4. Risk Factors, 2. Operating and Financial Review andProspects of 1. Overview of JAPEX and Its Subsidiaries,” the following matter is described in this report as amatter that may have a material impact on investment decisions: owing to a decline in production capacity at
Yufutsu oil and gas field in Tomakomai City, Hokkaido, the Company posted an impairment loss of ¥37,031
million in the fiscal year ended March 31, 2013, and posted a further impairment loss of ¥7,983 million in thethird quarter of the fiscal year ended March 31, 2014, in light of a re-evaluation of the production capacity at
the said Oil and Gas Field.

-7-

2. 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.
JAPEX is committed to contributing to local communities through a stable supply of energy
・ Explore for, develop, produce and deliver oil and natural gas in Japan and overseas.
・ Further enhance the gas supply chain, supported by our own domestic infrastructures, throughaggressive introduction of LNG business.
・ Leverage our existing technology and expertise to develop and commercialize new technology.
・ Make all stakeholder trust our first priority while striving to achieve sustainable growth and maximize
corporate value.

(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. Additionally, with factors such as intensification in the competitive environment for the domestic
natural gas business and changes in social conditions marked by an increase in the importance of global
warming countermeasures, the business environment encompassing JAPEX is undergoing a rapidtransformation. JAPEX, under the policy of its previous medium-term plan, has been working on establishinga clear action plan for the attainment of important business challenges over the long term by setting thefollowing three activities as core business objectives; “Sustaining and increasing reserves through explorationand development,” “Strengthening our natural gas integrated operation system” and “Pursuing technological
R&D activities and initiatives to address global environmental challenges.” Furthermore, on May 2011,
JAPEX announced a new medium-term plan that, while continuously positioning the above-mentioned three
activities as the three basic policies for the purpose of the Company’s business expansion, particularly
positions “Sustaining and increasing reserves through exploration and development” (E&P business) as thecore for future growth and focuses on shifting investment to overseas in the E&P business.
Details and subsequent progress of the JAPEX Group Medium-Term Business Plan (for fiscal years 2012 to2016) released on May 13, 2011 may be accessed with the following URLs in our Website.
http://www.japex.co.jp/english/newsrelease/pdf/JAPEX_20110513c.pdf“Notice of the Medium-Term Business Plan of the JAPEX Group” (English translation of original
Japanese text)
http://www.japex.co.jp/english/ir/pdf/library/JAPEX_Presentation_20120514_E.pdf“Presentation of Consolidated financial results for the fiscal year ended March 31, 2012” (English
translation of original Japanese text)
http://www.japex.co.jp/english/ir/pdf/library/JAPEX_PresentationMaterial_20130513_E.pdf“Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2013” (English
translation of original Japanese text)
In the new Medium-Term Business Plan, JAPEX, mindful of the growing trend towards unstable energy
prices and intensifying competition for the development of global resources, aims to achieve further businessgrowth by conducting overseas E&P investment to expand business opportunities and increase reserves whileat the same time ensuring the maximization of the value of existing assets in Japan and overseas.

-8-Below are the policies and goals by each business.
(E&P business)
During the five year period from the beginning of the fiscal year ended March 31, 2012 to the end of the fiscal
year ending March 31, 2016, JAPEX will shift investment to overseas in the E&P business, aiming to allocate
60% of the ¥280,000 million total investment budgets (¥170,000 million) to overseas investments. By
pursuing this policy, JAPEX will be able to increase its consolidated daily production to 70,000 barrels by theend of the fiscal year ending March 31, 2016, from the current 40,000 barrels of daily production. In addition,
by re-investing the cash flows provided by production, JAPEX aims to expand the proved reserves to 450
million barrels of crude oil equivalent by fiscal year ending March 31, 2021.
(Domestic natural gas business)
Although not quantitative targets have been set for sales volumes, etc., because of the uncertain businessenvironment, JAPEX, aiming to contribute to the continuing and growing use of natural gas, will concentrate
its efforts on the generation of new demand, development of infrastructure and facilities and the adjustment ofsales prices to appropriate levels.
(Environment and innovative technology projects)
While stepping up efforts in large projects such as for methane hydrate and Carbon dioxide Capture andStorage (CCS), JAPEX will be the pioneering developer in renewable energy and other new fields. JAPEX
aims to make those fields a commercial business by the end of the fiscal year ending March 31, 2016.
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.

-9-3. Consolidated financial statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2013
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Wells
Accumulated depreciation
Wells, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for overseas investment loss
Total investments and other assets
Total non-current assets
Total assets- 10 -

As of March 31, 2014

53,87032,33753,414
4,490
77
7,007
1,210
31,4184,850(31)
188,645

81,031
37,222
41,203
4,653
128
6,285
1,127
13,831
9,772(48)
195,209

149,528(114,920)
34,607
71,121(65,991)5,130
113,055(84,066)
28,98912,175
2,957
18,932(12,109)
6,823
90,683

151,904(118,794)
33,11080,675(69,058)
11,616111,305(88,411)22,894
12,19388,541
46,699(14,502)32,196200,552

10,394
10,394

11,365
11,365

177,304
30,331
5,959
26,515(31)(4,630)235,449
336,526
525,172

190,765
29,1006,039
34,329(39)(4,284)
255,910
467,828
663,038(Millions of yen)
As of March 31, 2013
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Provision for directors’ bonuses
Provision for loss on disaster
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits
Provision for directors’ retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets- 11 -

As of March 31, 2014

18,947–23
122,182
41,15523,61028,169118–
31,55583,45424,19731,9836,938
802–
10,8585,611
80,391
121,547

21,63632,509–829
6,845
16,001
4,845
82,668
166,123

14,288291,990(10)306,268

14,288318,433(10)
332,71178,31084,856226(2,362)–
76,173
21,183
403,625
525,172

(56)
5,166
(340)
89,62474,579496,915
663,038(2) Consolidated statement of income and Consolidated statement of comprehensive income
Consolidated statement of income

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
Dividend income
Gain on sales of securities
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of securities
Loss on valuation of securities
Loss on valuation of derivatives
Share issuance cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Subsidy income
Gain on transfer of mining rights
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses
Income (loss) before income taxes and minority
interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income (loss)- 12 -

Fiscal year ended
March 31, 2013
(April 1, 2012–
March 31, 2013)
231,086
172,075
59,010(Millions of yen)
Fiscal year ended
March 31, 2014
(April 1, 2013–
March 31, 2014)
276,588
210,460
66,127

13,086–
13,08632,017
13,906

9,985
(184)
9,800
31,692
24,634

2,085
9,628
411

2,341
2,366
693

753

12,1401,534
722
15,135

1,173
1,868
20,584

275
190
1
208
43
239
958
28,082

839
–
–
147
155
187
1,329
43,889

53
345
2,829
12
3,240

2
40
–
0
42

667
37,0940
37,762

145
7,983
219
8,347

(6,439)35,584

3,352(10,279)(6,927)
487
1,352
(865)

6,825
(1,258)5,566
30,017
1,002
29,015

Consolidated statement of comprehensive income

487(Millions of yen)
Fiscal year ended
March 31, 2014
(April 1, 2013–
March 31, 2014)
30,017(11,043)
221
3,389

6,543
(288)
9,486

(12)

39

(7,444)(6,957)

15,78145,798(8,709)42,807

1,751

2,991

Fiscal year ended
March 31, 2013
(April 1, 2012–
March 31, 2013)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to minority
interests- 13 -

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2013 (April 1, 2012 – March 31, 2013)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodRetained earnings

14,288

Total shareholders’equityTreasury shares

294,323(10)

308,601

Changes of items during period
Dividends of surplus(2,286)(2,286)

Net income (loss)

(865)

(865)

Change of scope of equity
method817

817

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period－(2,333)－(2,333)

14,288291,990(10)306,268

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at beginning of current
period89,36620

Foreigncurrencytranslation
adjustment(5,391)

Total
Remeasurements accumulated
otherof defined
benefit plans comprehensive

Minority
interests

Total net
assets

14,176

406,773

income－83,995

Changes of items during period
Dividends of surplus(2,286)

Net income (loss)(865)

Change of scope of equity
method817

Net changes of items other thanshareholders’ equity(11,056)

206

3,028

－

(7,822)

7,007

(814)

Total changes of items during
period(11,056)

206

3,028

－

(7,822)

7,007(3,147)

Balance at end of current period

78,310226(2,362)－

76,173

21,183

403,625- 14 -

Fiscal year ended March 31, 2014 (April 1, 2013 – March 31, 2014)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodRetained earnings

14,288

Total shareholders’equityTreasury shares

291,990(10)306,268

Changes of items during period
Dividends of surplus(2,571)(2,571)

Net income (loss)

29,01529,015

Change of scope of equity
method－Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period－

26,443－

26,443

14,288318,433(10)

332,711

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at beginning of current
period78,310226

Foreigncurrencytranslation
adjustment(2,362)

Total
Remeasurements accumulated
otherof defined
benefit plans comprehensive

Minority
interests

Total net
assets

21,183

403,625

income－76,173

Changes of items during period
Dividends of surplus(2,571)

Net income (loss)

29,015

Change of scope of equity
methodNet changes of items other thanshareholders’ equity

－
6,546

(283)

7,529

(340)

13,45153,39566,846

Total changes of items during
period

6,546

(283)

7,529

(340)

13,45153,39593,290

Balance at end of current period

84,856

(56)

5,166

(340)

89,62474,579496,915- 15 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2014
(April 1, 2013–
March 31, 2014)

Fiscal year ended
March 31, 2013
(April 1, 2012–
March 31, 2013)
Cash flows from operating activities
Income (loss) before income taxes and minority
interests
Depreciation
Impairment loss
Loss on retirement of property, plant and equipment
Loss (gain) on valuation of short-term and longterm investment securities
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for retirement
benefits
Increase (decrease) of liabilities for retirement
benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in allowance for overseas
investment loss
Interest and dividend income
Interest expenses
Loss (gain) on sales of short-term and long-term
investment securities
Share of (profit) loss of entities accounted for using
equity method
Gain on transfer of mining rights
Recovery of recoverable accounts
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
Income taxes (paid) refund
Net cash provided by (used in) operating activities- 16 -(6,439)35,584

16,29437,094656

15,567
7,983
139

1

–

21

25

(190)

–

–

(585)

56

26

37

(346)

(11,713)275(4,708)
839

(220)

(693)

(753)

(12,140)(2,829)––13,749(4,744)(4,766)(2,115)506

13,701

364

351
(104)
39,380(5,125)34,254134(3,086)
48,595(3,369)45,226

(Millions of yen)
Fiscal year ended
March 31, 2014
(April 1, 2013–
March 31, 2014)

Fiscal year ended
March 31, 2013
(April 1, 2012–
March 31, 2013)
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from sales and redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Payments for investments in capital
Payments of recoverable accounts
Payments of loans receivableCollection of loans receivable
Interest and dividend income received
Proceeds from dividends of residual property
Proceeds from capital reduction of investments
Proceeds from transfer of mining rights
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Cash dividends paid to minority shareholders
Interest expenses paid
Repayments of lease obligations
Proceeds from share issuance to minority
shareholders
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- 17 -(18,124)
15,784(801)
3,300(10,195)(37,754)
31,372(200)
3,204(121,283)49

12(3,852)–(72)(5,623)

(248)
248
(202)
(6,066)

2,446

1,430

–
(12,061)(4,061)
2,574
12,844
111
40
2,829
(22)
(14,836)(1,353)(20,553)(48)
4,768
13,702–
1,326–
42(131,600)

–
–
1,875
(11,141)(2,286)
(177)
(308)
(568)

206,318(178,149)
300(4,816)(2,571)
(377)
(850)
(556)

5,428

52,383(7,177)

71,680596

4,884

12,83699,803112,639(9,809)112,639
102,830

4. Others
Status of production and sales
1. Production
Fiscal year ended March 31, 2013
(April 1, 2012 –March 31, 2013)

Fiscal year ended March 31, 2014
(April 1, 2013 –March 31, 2014)

482,306

828,870(5,840)(424,040)

1,080,116

1,104,533(1,199)(170,549)

602

12,235348,948344,757(348,948)(344,757)

Crude oil (kl)Natural gas (thousand m3)
E&P
LNG (t)Bitumen (kl)Notes: 1. The figures in parentheses represent overseas production and are included in the total.
2. Part of the natural gas production volume is used as a feedstock for LNG.
3. Bitumen is a type of extra-heavy oil extracted from oil sands.

2. SalesFiscal year ended March 31, 2013
(April 1, 2012 –March 31, 2013)
AmountVolume(Millions of yen)
Crude oil (kl)

1,335,639

78,834

1,559,888

108,408

1,455,708

69,795

1,418,963

71,584

LNG (t)229,242

19,098

268,510

26,202

Bitumen (kl)349,198

9,694

342,565

10,962

3

Natural gas (thousand m )E&P

Subtotal

177,423

217,157

9,674

8,740

Oil products/merchandise

36,03442,860

Others

7,953

7,830

Subtotal

43,98850,691

Total

231,086

276,588

Contract services
Otherbusinesses

Fiscal year ended March 31, 2014
(April 1, 2013 –March 31, 2014)
AmountVolume(Millions of yen)

Notes: 1. “Oil products/merchandise” includes liquefied petroleum gas (LPG), fuel oil, gas oil and kerosene, and “Others”
includes the transportation of natural gas and oil products as well as other subcontracted tasks.
2. Monetary amounts in the table do not include consumption taxes.

- 18 -