[Explanatory Material]

Financial Results

for the Six Months Ended September 30, 2023

November 10, 2023

Japan Petroleum Exploration Co., Ltd.
Note: This document has been translated from the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

Contents
Ⅰ. Financial Highlights and Business Progress
Ⅱ. Initiatives for Sustainable Growth and Medium- to Long-term
Enhancement of Corporate Value
Ⅲ. Financial Results for the Six Months Ended September 30, 2023
Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Note: This material also serves as the presentation material for the financial results briefing for the institutional investors and analysts
to be held on November 13, 2023.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

2

Ⅰ. Financial Highlights and Business Progress
Ⅱ. Initiatives for Sustainable Growth and Medium- to Long-term
Enhancement of Corporate Value
Ⅲ. Financial Results for the Six Months Ended September 30, 2023
Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

3

Ⅰ. Financial Highlights and Business Progress

Financial Highlights
2Q FY3/24 Results （Year-on-Year）(Billion Yen)

1-2Q FY3/23 (a)1-2Q FY3/24 (a)ChangeOperating profit

19.3

28.5

+9.1

Ordinary profit

43.0

39.1

(3.9)

Profit attributable to owners of parent

31.4

27.7

(3.6)



Operating profit ： Increased due to growth of sales volume for U.S. tight oil development and increased sales prices ofdomestic natural gasOrdinary profit ： Decreased due to decline in equity method profit and foreign exchange gains

FY3/24Forecasts Revision （vs Aug.9 Forecasts）(Billion Yen)

ChangePrevious (f) Aug. 9, 2023

Revised (f) Nov. 10, 2023

Operating profit

38.9

48.8

+9.9

Ordinary profit

44.8

57.0

+12.2

Profit attributable to owners of parent

34.0

45.0

+11.0



Operating profit ： Expect to increase due to anticipated increase in sales prices of domestic crude oil, domestic naturalagas, LNG, etc.



Ordinary profit ： Expect to increase due to increased foreign exchange gains

Shareholder Returns


Revised annual dividend forecast to 250 yen per share (interim 125 yen + year-end forecast 125 yen) ※ Revision basedon consolidated dividend payout ratio of 30％



Decided to repurchase own shares up to 3 million shares or 20.0 billion yen

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

4

Ⅰ. Financial Highlights and Business Progress

Major Business Progress in the First Half of FY3/24
E&P Field【Domestic】• Additional development of Katakai gas field in Niigata：Completion of the first well (May) / Start drilling of the second well (Aug)【Overseas】• Capital participation in a subsidiary of U.K.-based Longboat Energy PLC (Longboat JAPEX Norge AS : LBJ) which promotes explorationand development in offshore Norway (May)• Acquisition of additional well interests in tight oil development project in U.S. (May)• Started production of crude oil and natural gas at the Seagull project in U.K. North Sea（Nov）

I/U Field【Development of domestic renewable energy】• Established PJ Asset Management Co., Ltd., to develop, manage and operate of solar power generation projects（Jun）• Started operation of Mitsuke PV Power Plant, Niigata（Aug）• Invested in Storage battery-related company PowerX, Inc（Aug）【LNG transport and supply】• Conducts Feasibility Study of Energy Service Utilizing LNG to the Industrial Park in Northern Vietnam（Aug）

CN Field
•
•
•
•
•
•

Agreed on Joint Evaluation with JFE Steel Corporation to Establish CCS Value Chain Originated from Japan Aligned with CCS Study in
Malaysia（Jun）
Presented a carbon recycling scenario utilizing inter-industry collaboration in Tomakomai（Jul）
Signed Joint Study Agreement Towards CO2 Injection Field Test at Sukowati Oil Field in Indonesia（Jul）
CCS Studies in Tomakomai Area and East-Niigata Area were commissioned as the “Business Feasibility Study on Japanese Advanced CCS
Project” by JOGMEC in FY2023 (Jul and Aug)
Signed MOU with SKK Migas for cooperation in realizing CCS/CCUS Hub & Clusters in Indonesia（Sep）
Launched our first concrete CCS commercialization study in advanced overseas country by capital participation in Blue Spruce Operating LLCof the U.S. (Oct)Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

5

Ⅰ. Financial Highlights and Business Progress

Progress on Targets and Fund Allocation for FY3/24
Quantitative Targets and Fund Allocation Policies in JAPEX Management Plan 2022-2030

 Set the quantitative targets, including long-term to be achieved by FY2030 and interim by FY2026.
 To allocate 450 billion yen to investment in growth and 50 billion yen to shareholder returns, from 500 billion
yen accumulating cash inflows until FY2030

Quantitative target
Items

Medium-to Long-term Targets

2Q FY3/24

FY3/24Forecasts

Business Profit*1

FY2026 30 billion yen
FY2030 50 billion yen

29.7 billion yen

49.3 billion yen

N/A

9.9％*2

7：3

7：3

ROE

FY2026
FY20305%Profit Composition(E&P：non-E&Ps)

FY2026
FY2030

6:4

8%

5：5

Fund Allocation
Items

Assumed allocation*3

2Q FY3/24

FY3/24Forecasts

Growth Investments

FY2026 275 billion yen
FY2030 450 billion yen

35.7 billion yen

87.4 billion yen＋α(Cumulative total 131.5 billion
yen＋α)

Shareholder Returns

FY2030 25 billion yen
FY2030 50 billion yen

11.9 billion yen*4

28.7 billion yen*5(Cumulative total 42.5 billionyen)*1 Operating income and equity in earnings of affiliates (including profits distributed under limited partnership agreements and silent partnership agreements)*2 Figures assume 454.1 billion yen in average equity at the beginning and end of the period*3 Five-year cumulative total from FY2022 through FY2026 and nine-year cumulative total through FY2030, *4 FY 3/23 dividend, *5 FY3/23 dividend + FY3/24 interim dividend + share buyback

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

6

Ⅰ. Financial Highlights and Business Progress
Ⅱ. Initiatives for Sustainable Growth and Medium- to Long-term
Enhancement of Corporate Value
Ⅲ. Financial Results for the Six Months Ended September 30, 2023
Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

7

Ⅱ. Initiatives for Sustainable Growth and Medium- to Long-term Enhancement of Corporate Value

Sustainable Growth and Medium- to Long-Term Enhancement of Corporate Value Current Status Analysis
Market’s evaluation (PBR etc.)

PBR is improving, but has not yet reached 1x



ROE of 16.9% in FY03/2023 and 9.9% in
FY03/2024 forecast are above the TSE prime
average, but lower-than-average PER is also

Owner's Equity
JAPEX(Times）
1.6
1.2 1.0

PBR ratio.

1.0

as the sustainability of oil- and natural gasrelated businesses toward a decarbonizedsociety and the high volatility of oil and

0.6
0.4




Cost of equity is approximately 8%.

1.2

10,0000.3

Equity Ratio

Withdrawal from
Canada 2 business

12,00078.7
63.7 62.5
63.6 64.2 64.0
59.5 58.6 60.8

74.9

8,000
0.6

0.4

4,000

（％）
80.0
60.0

6,000
216

207

1,300 1,419 1,360 1,277 1,188

502

2,000

80

0.2

5

3

40.0
20.0
0.0

0.0
2020/3of understanding and confidence in our
the factors behind the low PBR.

1.3

PBR x1.0

0.3

Other capital（¥ billion）

Withdrawal from
Canada 2 businessnatural gas prices, we recognize that the lackefforts to enhance corporate value is one of

1.4

0.8

Long-term debt

TSE Prime Average

1.4

an issue as a reason for remaining at a low

In addition to standard industry issues such

Changes in Equity Ratio

Changes in PBR

2021/32022/3

Changes in ROE

Changes in PER

JAPEX

JAPEX

TSE Prime Average

15.0
6.6

5.0

Equity ratio is high after termination of two

0.0

projects in Canada.

(5.0)(Times）
30.0

16.9

（％）
10.0

2023/36.5(10.0)

7.2

9.5

9.2

20.0
10.0
0.0

Withdrawal from
Canada 2 business

26.2
13.3
3.7

19.7

15.0

Withdrawal from
Canada 2 business3.6(10.0)(4.7)(20.0)(0.7)(30.0)(8.0)(15.0)

9.9 *

TSE Prime Average(40.0)(43.1)(50.0)
2024/32024/32020/3 2021/3 2022/3 2023/3（Forecast）(予想)* Figures assume 454.1 billion yen in average equity at the beginning and end of the period
2020/3Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

2021/32022/32023/38

Ⅱ. Initiatives for Sustainable Growth and Medium- to Long-term Enhancement of Corporate Value

Sustainable Growth and Medium- to Long-term Enhancement of Corporate Value Policies in the Future
Investments focused on capital efficiency
Continue to invest in growth aligned with the management plan and expand the business asset portfolio that will be the source of future
earnings

Consideration of optimal capital structure in parallel with business portfolio construction（The equity ratio, which has temporarily
increased, is expected to decline due to the utilization of interest-bearing debt in conjunction with the steady execution of growthinvestments）

Enhancement of Shareholder Returns

We repurchased up to 3 million shares (5.5% of outstanding shares) for up to ¥20.0 billion, using temporary upside cash from the recent
rise in oil and gas prices

Continuous verification of the rationality of strategic shareholdings

Continuous dialogue with stakeholder


The Board of Directors will continue to regularly analyze and consider

ROE Oil Price Sensitivities

the management plan's progress, and dialogue with the market to
improve ROE and PER.


The management plan sets ROE targets based on the assumption of anoil price of $50 per barrel, but assuming that the current oil price level($80 per barrel) continues, the ROE level is expected to be around 10%
in FY2026 and 13% in FY2030.

ROE（USD 50/bbl）

ROE（USD 80/bbl）

Approx. 13%

14.0
12.0

Approx. 10%

10.0
8.0

9.9%

+5%

+5%

6.0

8%

4.0

5%

2.0
0.0
FY20232024/3Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

FY20262027/3

FY20302031/39

Ⅰ. Financial Highlights and Business Progress
Ⅱ. Initiatives for Sustainable Growth and Medium- to Long-term
Enhancement of Corporate Value
Ⅲ. Financial Results for the Six Months Ended September 30, 2023
Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

10

Ⅲ. Financial Results for the Six Months Ended September 30, 2023

FY3/24 Results (Year-on-Year)
Million Yen

1-2Q FY3/23 (a)1-2Q FY3/24 (a)ChangeNet sales

120,708

150,708+30,000+25%

Gross profit

33,98043,304+9,323+27%

Operating profit

19,30428,501+9,196+48%

Ordinary profit

43,084

39,135(3,948)(9%)

Profit attributable to owners of parent

31,43027,770(3,659)(12%)

Oil Price and Exchange Rate
1-2Q FY3/23 (a)1-2Q FY3/24 (a)ChangeWTI

USD/bbl101.5374.94(26.59)Crude oil price (CIF)

USD/bbl107.2583.49(23.76)

Exchange rate

JPY/USD

127.44137.61+10.17

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

11

Ⅲ. Financial Results for the Six Months Ended September 30, 2023

E&P Business Sales (Year-on-Year)
1-2Q FY3/23 (a)Net sales：Million Yen

Unit

Sales volume

1-2Q FY3/24 (a)Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

14,142-47,536--+33,393

+236%

141

14,101

650

47,259

+508

+359%

+33,157

+235%

116

10,495

101

7,662

[1]

(15)

(13%)

(2,832)(27%)

Crude oil - Overseas*1

14

2,651

539

38,844[2]+524+3,599%+36,193+1,365%Purchased crude oil

10

955

10

751

(0)

(4%)

(203)

(21%)

1

40

25

276

+24

+1,626%

+236

+587%

-

E&P Business
Breakdown
Crude oil
Crude oil - Japan

Thousand KL

Natural Gas - Overseas*2

Million M3

Main factors for change[1] Decrease in sales price and sales volume[2] Increase in sales volume of Iraq Garraf project and U.S. tight oil development*1 Include the amounts of Japex Garraf Ltd., and Japex (U.S.) Corp.
*2 Include the amounts of Japex (U.S.) Corp.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

12

Ⅲ. Financial Results for the Six Months Ended September 30, 2023

I/U Business Sales (Year-on-Year)
1-2Q FY3/23 (a)Net sales：Million Yen

Unit

Infrastructure & Utility Business-

Sales volume

1-2Q FY3/24 (a)Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

76,779-74,686--(2,093)(3%)

446

35,966399

36,389

(46)

(10%)

+422

+1%

211

-

193

-

(18)

(9%)

-

-

Breakdown
Natural Gas - Japan

Million M3- Produced in Japan

LNG

Thousand Ton

94

13,486

61

6,049

[1]

(32)

(35%)

(7,436)(55%)

Electricity

Million kWh

1,452

25,251

1,946

29,251

[2]

+493

+34%

+3,999

+16%

-

2,074

-

2,996

-

+921

+44%

Other*--

Main factors for change[1] Decrease in sales volume etc.
[2] Increase in sales volume* Including net sales from commissioned business including transport of natural gas and regasification of LNG

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

13

Ⅲ. Financial Results for the Six Months Ended September 30, 2023

Operating Profit (Year-on-Year)
E&P Business(Billion Yen)

19.3

OP total

28.5

0.2

E&P-Overseas

Overseas : +7.4 bn.

(0.2 bn.)→ 7.7 bn.

Domestic : (1.4 bn.)

16.1 bn.

→• Increase in sales volume of tight oil development in U.S.
（+）
• Foreign exchange gap related to cost recovery andincreased production remuneration for the Iraqi Garraf
project（+）

7.7

•

∗

16.1

E&P-Japan

Internal transaction price from E&P Business to Infrastructure/Utilities
Business for the internal management

14.7

I/U Business+4.3 bn.

5.8

I/U

Others10.2→

10.2 bn.

Others *

(3.0)

(5.0)

5.8 bn.

Effect of raw material slide time lag, etc（+）
Decrease in marginal gain on LNG procurement （－）••(1.2 bn.)(4.2)(10.0)

14.7 bn.

Decrease in sales volume and sales price of crude oil(Japan)（－）
Increase in sales price* of natural gas (Japan)（+）•(3.0 bn.)→(4.2 bn.)

・Increase in general and administrative expenses（－）
0.0

1-2Q FY3/23 (a)

5.0

10.0

15.0

20.0

1-2Q FY3/24 (a)

25.0

30.0

∗

Operating profit not belonging to the above business units (contracting,oil products and commodities, and others) less headquarters
administrative expenses

Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

14

Ⅲ. Financial Results for the Six Months Ended September 30, 2023

Analysis of Net Income change (Year-on-Year)(Billion Yen)
(FY3/23) Gain on valuation of derivatives (6.4 bn.)
Dividend income/Interest income ＋0.9 bn.

Japex Garraf
JAPEX(2.4 bn.)(0.3 bn.)

JUS+4.9bn.
Japex Garraf ＋1.9bn.
SODECO
DGN

Net
incomeOperating profit*+9.1 bn.

FY3/23
1-2Q (a)E&Poverseas

E&P
Japan

I/U

FY3/23
1-2Q (a)

0.2

16.1

FY3/24
1-2Q (a)

7.7

14.7

(4.6 bn.)(0.4 bn.)Non-operating income(13.1 bn.)

Net
incomeOthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

6.6

7.9

(0.0)

8.9

2.6

1.2

3.0

(0.0)

9.0

2.2

OthersForeignexchange
gains and loss

Equity on
earnings

5.8

(3.0)

9.1

10.2

(4.2)

6.3

FY3/24
1-2Q (a)Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

15

Ⅰ. Financial Highlights and Business Progress
Ⅱ. Initiatives for Sustainable Growth and Medium- to Long-term
Enhancement of Corporate Value
Ⅲ. Financial Results for the Six Months Ended September 30, 2023
Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

16

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

FY3/24 Forecasts (vs Aug. 9 Forecasts)
Million Yen

Previous (f) Aug. 9, 2023

Revised (f) Nov. 10, 2023

ChangeNet sales

306,100

325,400+19,300+6%

Gross profit

74,20083,800+9,600+13%

Operating profit

38,90048,800+9,900+25%

Ordinary profit

44,80057,000+12,200+27%

Profit attributable to owners of parent

34,00045,000+11,000+32%

Oil Price and Exchange Rate
Previous (f) Aug. 9, 2023

Revised (f) Nov. 10, 2023

ChangeWTI

USD/bbl

75.60

77.46

+1.86

Crude oil price (CIF)

USD/bbl

77.45

84.35

+6.90

Exchange rate

JPY/USD

131.16139.51+8.35

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

17

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

E&P Business Sales Forecasts (vs Aug. 9 Forecasts)
Previous (f) Aug. 9, 2023
Net sales：Million Yen

Unit

E&P Business-

Sales volume

Net sales

Revised (f) Nov. 10, 2023
Sales volume

ChangeNet sales

Sales volume

Net sales-

93,514-

94,172

-

-

+658

+1%

1,591

91,5491,331

93,411

(259)

(16%)

+1,862+2%

206

13,255219

16,479+12+6%+3,224

+24%

1,367

77,1101,092

75,445

(274)

(20%)

(1,665)

(2%)

17

1,183

19

1,487

+1

+11%

+303

+26%

86

1,965

60

761

(26)

(31%)

(1,204)(61%)

Breakdown
Crude oil
Crude oil - Japan

Thousand KL*1

Crude oil - overseas
Purchased crude oil*2Natural Gas - Overseas

Million M3

[2]

[3]

[1]

Main factors for change[1] Increase in sales price[2] Absence of sales volume due to delay in the start of production at the Seagull project in U.K. North Sea / Decrease in Cargo Received for Iraqi Garraf
Project[3] Absence of sales volume due to delay in the start of production at the Seagull project in U.K. North Sea*1 Includes the amounts of Japex Garraf Ltd. and Japex (U.S.) Corp.
*2 Include the amounts of Japex (U.S.) Corp.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

18

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

I/U Business Sales Forecasts (vs Aug. 9 Forecasts)
Previous (f) Aug. 9, 2023
Net sales：Million Yen

Unit

Infrastructure & Utility Business-

Sales volume

Net sales

Revised (f) Nov. 10, 2023
Sales volume

ChangeNet sales

Sales volume

Net sales-

150,567-

168,005--+17,437+12%

976

78,775961

80,950(15)(2%)+2,174

+3%

459

-

448

-

(10)

(2%)

-

-

Breakdown
Natural Gas - Japan

Million M3- Produced in Japan

LNG

Thousand Ton

218

19,291279

28,617

[1]

+61

+28%

+9,325+48%

Electricity

Million kWh

3,13746,126

3,468

52,160

[2]

+331

+11%

+6,033+13%

Others*

-

-

6,373

-

6,277

-

(96)

(2%)

-

Main factors for change[1]-[2] Increase in sales volume and sales price* Including net sales from commissioned business including transport of natural gas and regasification of LNG

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

19

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Operating Profit Forecasts (vs Aug. 9 Forecasts)(Billion Yen)

E&P Business
Overseas : (0 bn.)

38.9

OP total

12.8

E&P-Overseas•

Domestic : +4.6 bn.

12.8

25.9

+5.4 bn.
••

19.0

13.5 bn.

→

19.0 bn.

→(9.0 bn.)

Others*(9.0)(10.0)

25.9 bn.

Resale of surplus LNG cargo（+）
Increase in marginal gain on LNG procurement （＋）(8.8)(20.0)→

I/U Business

13.5

Others21.2 bn.

* Internal transaction price from E&P Business to Infrastructure/Utilities
Business for the internal management

21.2

I/U

12.8 bn.

Increase in sales price of crude oil (Japan)(+)
Increase in sales price of natural gas (Japan)（+）••

E&P-Japan→

Absence of sales volume due to delay in the start ofproduction at the Seagull project in U.K. North Sea（－）
Foreign exchange gap related to cost recovery andincreased production remuneration for the Iraqi Garraf
project（＋）•
48.8

12.8 bn.

0.0

Initial (f)Aug.9, 2023

10.0

20.0

30.0

40.0

50.0

(0.1 bn.)∗(8.8 bn.)

Operating profit (contracting, oil products and commodities, and others)
not belonging to the above business units, less headquarters
administrative expenses

Revised (f)Nov.10, 2023

Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

20

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Analysis of Change in Net Income Forecasts (vs Aug. 9 Forecasts)(Billion Yen)

Japex
Japex Garraf
Japex Garraf
JUK
JUS

Net
income+0.7 bn.
+0.2 bn.

SODECO
LBJ+0.7 bn.
(0.2 bn.)+3.0 bn.
(2.8 bn.)(0.2 bn.)

Operating profit*＋9.9 bn.

FY3/24 (f)
Aug.9

E&P
overseas

E&P
Japan

I/U

FY3/24 (f)Aug. 912.8

21.2

FY3/24 (f)Nov. 10

12.8

25.9

Non-operating income+2.3 bn.

Net
incomeOthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

0.3

3.6

(0.1)

9.8

0.9

0.9

4.3

(0.1)

9.6

2.3

OthersForeignexchange
gains and loss

Equity on
earnings

13.5

(8.8)

2.0

19.0

(9.0)

3.0

FY3/24 (f)Nov.10Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

21

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

FY3/24 Forecasts (Year-on-Year)
Million Yen

FY3/23 (a)FY3/24 Revised (f)ChangeNet sales

336,492

325,400(11,092)(3%)

Gross profit

96,111

83,800(12,311)(13%)

Operating profit

62,08548,800(13,285)(21%)

Ordinary profit

83,13057,000(26,130)(31%)

Profit attributable to owners of parent

67,39445,000(22,394)(33%)

Oil Price and Exchange Rate
FY3/23 (a)FY3/24 Revised (f)ChangeWTI

USD/bbl

94.42

77.46

(16.96)

Crude oil price (CIF)

USD/bbl102.2684.35(17.91)

Exchange rate

JPY/USD

132.86139.51+6.65

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

22

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

E&P Business Sales Forecasts (Year-on-Year)
FY3/23 (a)Net sales：Million Yen

Unit

Sales volume-

E&P Business

FY3/24 Revised (f)Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

56,063-

94,172--

38,109+68%

695

55,703

1,331

93,411+636+91%+37,708+68%

238

20,760219

16,479

[1]

(19)

(8%)

(4,280)

(21%)

436

33,084

1,092

75,445

[2]

+656

+150%

+42,360

+128%

20

1,858

19

1,487

(1)

(6%)

(370)

(20%)

11

360

60

761

+48

+424%

+400

+111%

Breakdown
Crude oil
Crude oil - Japan*1

Crude oil - overseas

Thousand KL

Purchased crude oil

Natural Gas - Overseas*2

Million M3[3]

Main factors for change[1] Decrease in sales volume and sales price[2] Increase in sales volume of tight oil development in U.S. and Garraf Project in Iraq.
[3] Increase in sales volume of tight oil development in U.S.

*1 Includes the amounts of Japex Garraf Ltd. and Japex (U.S.) Corp.
*2 Include the amounts of Japex (U.S.) Corp.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

23

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

I/U Business Sales Forecasts (Year-on-Year)
FY3/23 (a)Net sales：Million Yen

Unit

Infrastructure & Utility Business-

Sales volume

FY3/24 Revised (f)Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

213,657-

168,005--(45,652)

(21%)

989

97,360961

80,950(27)(3%)[1] (16,410)

(17%)

461

-

448

-

(12)

(3%)

-

-

(60)

(18%)

(22,955)

(45%)

+462

+15%

(6,575)

(11%)

+288

+5%

Breakdown
Natural Gas - Japan

Million M3- Produced in Japan

LNG

Thousand Ton

340

51,572279

28,617

Electricity

Million kWh

3,005

58,735

3,468

52,160

Others*

-

-

5,988

-

6,277

[2]

-

-

[3]

Main factors for change[1]-[2]Decrease in sales price of natural gas (Japan) and LNG, decrease in sales volume of LNG[3] Decrease in sales price* Including net sales from commissioned business including transport of natural gas and regasification of LNG

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

24

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Operating Profit Forecasts (Year-on-Year)(Billion Yen)

E&P Business
Overseas : +10.8 bn.
•

62.0

OP total

Domestic : (15.2 bn.)

48.8

E&P-Overseas→

12.8 bn.

41.1 bn.

→

25.9 bn.

Decrease in sales volume and sales price of crude oil (Japan)（－）
Decrease in sales volume and sales price* of natural gas(Japan) （－）

•
•

1.9

1.9 bn.

Increase in sales volume of tight oil development in U.S.
（＋）
Absence of one-time expenses of Japex Garraf Ltd. （＋）

•

12.8
∗

Internal transaction price from E&P Business to Infrastructure/Utilities
Business for the internal management

41.1

E&P-Japan

I/U Business

25.9(5.5 bn.)
•

24.6

I/U

24.6 bn.

→

19.0 bn.

→(9.0 bn.)

Decrease in margin on LNG procurement （－）

19.0

Others*Others(5.6)(3.3 bn.)(9.0)(20.0)

0.0
FY3/23 (a)

20.0

40.0

60.0

FY3/24 Revised (f)80.0(5.6 bn.)• Increase in general and administrative expenses(Personnel and digital-related expenditures) （－）• Decrease in profit of contract services at subsidiaries (－)∗

Operating profit (contracting, oil products and commodities, and others)
not belonging to the above business units, less headquarters
administrative expenses

Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

25

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Analysis of Change in Net Income Forecasts (Year-on-Year)(Billion Yen)
Japex Garraf
JAPEX

JUS
Japex Garraf

SODECO
DGN
LBJ(1.8 bn.)(0.5 bn.)(3.0 bn.)(2.2 bn.)(0.7 bn.)+6.0 bn.
+4.8 bn.
(FY3/23) Gain on derivatives(6.0 bn.)
Dividend income/Interest income ＋0.9 bn.

NetincomeOperating profit*(13.2 bn.)Non-operating income(12.8 bn.)
OthersExtraordinary
incomeIncometaxes

Profitattributable tononcontrollinginterest

7.1

8.6

(0.0)

15.1

0.5

0.9

4.3

(0.1)

9.6

2.3

OthersForeignexchange
gains and loss

Equity on
earnings

24.6

(5.6)

5.3

19.0

(9.0)

3.0

FY3/23 (a)E&Poverseas

E&P
Japan

I/U

FY3/23 (a)

1.9

41.1

FY3/24
Revised (f)

12.8

25.9

Net
incomeFY3/24
Revised (f)Note) The amounts in the operating profit breakdown by business segment are the figures for the Group’s internal management
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

26

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Balance sheet
Million yen

As of Mar. 31,

As of Sep. 30,2023(a)2023(a)ChangeCurrent assets

281,791

261,075(20,716)

Non-current assets

286,388358,694+72,305

Property, plant and equipment

118,411

143,032+24,620

Investment securities

115,940

167,981+52,040

Recoverable accounts

23,455

16,355(7,099)other28,58031,324+2,743

Total assets

568,180

619,769+51,589

Current liabilities

64,25042,259(21,990)

Non-current liabilities

46,75961,706+14,946

Total net assets

457,169

515,803+58,633

Valuation difference on available-for-sale securities

46,32480,147+33,822

Non-controlling interests

31,536

33,612+2,076

Total liabilities and net assets

568,180

619,769+51,589

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

Capital expenditure for tight oil
development in U.S. and Seagull
project in U.K. North Sea, etc.

Increase in market value ofinvestment securities
Capital participation in Norwegianbusiness, etc.

Recording of net income for theperiod (＋)
Increase in unrealized gains onavailable-for-sale securities(＋)
Increase in foreign currencytranslation adjustments （+）
Decrease due to dividend
payment(－)

27

Ⅳ. Revised Financial Forecasts for the fiscal year ending March 31, 2024

Cash Flows and Debt
Million Yen

FY3/23 (a)FY3/24 (a)

1-2Q

1-2Q

Cash flows from operating activities

FY3/23 (a)Full year

FY3/24 (f)Full year
Aug.9

Nov.1042,80644,973

104,581

84,65588,635

Profit before income taxes

43,06839,121

83,08444,70056,900Depreciation

5,497

11,97914,257

26,587

24,491

Recovery of recoverable accounts-

18,88818,29541,581

39,736

Cash flows from investing activities(22,080)(33,767)(52,723)(116,539)(115,444)

Purchase of property, plant and equipment(14,735)(31,984)(35,973)(84,136)(85,385)

Payments of recoverable accounts(13,657)(11,917)(27,729)(33,538)(32,413)

Cash flows from financing activities(5,985)(12,322)(14,506)(19,145)(30,392)

Cash and cash equivalents at end of period

168,384

190,129

186,166

135,137

128,965Interest-bearing debt*1--

10,413

10,14910,149

EBITDA*2--

85,31674,177

83,241

Debt-to-EBITDA ratio

-

-

0.1

0.1

0.1

*1 Interest-bearing debt includes lease obligations, retirement benefit liabilities and contingent liabilities*2 EBITDA is the total of operating profit, depreciation, interest and dividends received based on investment cash flow statement
Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

28

Appendix
1. Net Sales

2. Financial Results
3. Segment Profit

4. Price Assumptions for FY3/24 Forecasts

5. Sensitivities Analysis on FY3/24 Forecasts Basis

6. Business Overview

7. Integrated Report and IR Materials
8. Glossary

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

29

Appendix

1. Net Sales - E&P
FY3/23 (a)Million Yen

FY3/24

1Q

2Q

1-2Q

Full year

1Q

2Q

1-2Q

7,266

6,876

14,142

79

62

7,251

Full year (f)56,063

10,72436,81147,536

93,514

94,172

141

695

152

497

650

1,591

1,331

6,850

14,10155,703

10,60836,65047,25991,54993,411

67

49

116

238

50

50

101

206

219

5,640

4,855

10,495

20,760

3,700

3,962

7,662

13,255

16,479

7

7

14

436

97

441

539

1,367

1,092

1,192

1,458

2,651

33,084

6,532

32,312

38,844

77,11075,445

5

5

10

20

5

5

10

17

19

418

536

955

1,858

375

375

751

1,183

1,487

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

0

0

1

11

10

15

25

86

60

Net sales

14

25

40

360

116

160

276

1,965

761

WTI（USD/bbl）

94.41

108.65101.53

94.42

76.11

73.78

74.94

75.60

77.46

Crude oil price (CIF) (USD/bbl) *3

101.55115.31

107.25102.26

85.17

81.77

83.49

77.45

84.35

Aug. 9
Sales
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

Nov. 10*1 FY3/23 includes the amounts of Japex Garraf Ltd. and Japex (U.S.) Corp.
*2 FY3/23 include the amount of Japex (U.S.) Corp
*3 Domestic sales price average of crude oil referring to crude oil price (CIF)

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

30

Appendix

1. Net Sales - I/U
FY3/23 (a)Million Yen

1Q

2Q

FY3/24

1-2Q

Full year

1Q

2Q

1-2Q

Full year (f)Aug. 9Nov. 1036,00940,77076,779213,657

36,39838,28874,686

150,567

168,005

231

214

446

989

202

197

399

976

961

17,92318,04335,966

97,36020,20016,18936,38978,77580,950

109

101

211

461

102

90

193

459

448

49

44

94

340

30

30

61

218

279

6,062

7,424

13,486

51,572

1,498

4,551

6,049

19,291

28,617

665

787

1,452

3,005

774

1,171

1,946

3,137

3,468

Net sales

10,986

14,26525,25158,735

13,137

16,11329,251

46,12652,160

Others*

1,037

1,037

2,074

5,988

1,561

1,434

2,996

6,373

6,277

JLC Price (JPY / ton)

101,863

143,821

122,842

126,286

89,887

89,11589,50180,422

89,909

Sales
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)

* Including net sales from commissioned business including transport of natural gas and regasification of LNG

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

31

Appendix

2. Financial Results
Million Yen

FY3/23 (a)1Q

Net sales

2Q

FY3/24

1-2Q

Full year

1Q

2Q

1-2Q

Full year (f)Aug. 9Nov. 10
325,400

58,61762,091

120,708

336,492

61,321

89,387150,708

306,100

7,266

6,876

14,14256,063

10,72436,81147,536

93,514

94,172

Infrastructure/Utility Business

36,00940,77076,779213,657

36,39838,28874,686

150,567

168,005

Others

E&P Business

15,341

14,44429,786

66,771

14,19914,28628,48662,01863,221

Cost of sales

41,92044,80786,727240,380

40,812

66,591

107,404

231,900

241,600

Gross profit

16,696

17,28333,98096,111

20,50822,79543,304

74,20083,800

97

1,042

1,140

2,885

255

726

982

4,800

4,700

Exploration expenses
SG&A expenses

6,788

6,746

13,535

31,139

7,349

6,470

13,82030,50030,300Operating profit

9,810

9,494

19,30462,085

12,903

15,59728,501

38,90048,8008,200

12,78910,98923,77921,044

5,315

5,318

10,6345,900Interest income

149

257

406

1,173

520

464

985

900

1,400

Interest expenses

(1)

(1)

(2)

(5)

(24)

(34)

(58)

(1,100)(1,000)

Dividend income

47

1,603

1,651

3,520

57

1,977

2,035

3,600

4,200

5,988

696

6,684

7,109

338

932

1,270

300

900

Non-operation income (expense)

Share of profit of entities accounted forusing equity method
Provision for overseas investment

-

0

0

(44)

(15)

0

(15)

(100)

(100)

Foreign exchange gains and loss

6,748

2,428

9,176

5,332

4,764

1,587

6,352

2,000

3,000

Other
Ordinary profit

(142)

6,004

5,861

3,958

(325)

390

64

300

(200)

22,60020,48343,084

83,13018,21920,916

39,13544,80057,000Extraordinary income (loss)

(1)

(14)

(15)

(46)

(9)

(3)

(13)

(100)

(100)

Profit before income taxes

22,59820,46943,06883,084

18,20920,912

39,12144,70056,900

Income taxes

5,304

3,665

8,970

15,102

4,335

4,757

9,092

9,800

9,600

Profit attributable to non-controlling interests

1,653

1,013

2,667

587

874

1,384

2,258

900

2,300

15,64015,79031,43067,394

12,99914,77027,77034,00045,000

Profit (loss) attributable to owners of parent

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

32

Appendix

3. Segment Profit
Million Yen

FY3/23 (a)1Q

2Q

FY3/24

1-2Q

Full year

1Q

2Q

1-2Q

Full year(f)Aug. 9Operating profit (loss)Japan

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

North America

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

EuropeShare of profit (loss) of entities
accounted for using equity
methodOperating profit (loss)

Middle East

Share of loss of entities accounted
for using equity method

Operating profit (loss)*1

OthersShare of profit (loss) of entities
accounted for using equity
methodAdjustments andEliminations*2
Amounts on consolidated
statement of income*3
*1
*2
*3

Operating profit (loss)

Nov. 10

11,472

11,21522,68868,855

13,732

12,60826,341

38,157

48,164

291

24

315

326

136

50

187

291

276

227

320

548

4,210

1,952

3,536

5,488

10,543

10,253

-

-

-

-

-

-

-

-

-

(33)

(55)

(88)

(170)

(111)

(137)

(248)

1,823

(984)

-

-

-

-

-

-

-

(497)

(728)

522

611

1,134

(112)

447

2,672

3,119

1,741

4,773

(3)

(3)

(6)

(11)

(1)

(3)

(4)

(5)

(4)

-

-

-

-

-

-

-

-

-

5,699

675

6,375

6,793

202

884

1,087

510

1,354

(2,378)(2,598)(4,977)(10,697)(3,118)(3,082)(6,200)(13,366)(13,406)

9,810

9,494

19,30462,085

12,903

15,59728,501

38,90048,800Include the Sakhalin Oil and Gas Development Co., Ltd., Energi Mega Pratama Inc., and others
Mainly intersegment elimination and corporate expense.
Furthermore, Corporate expense represents mainly general and administrative expenses and experiment and research expense that are not allocated to reporting segments.
Segment profit (loss) is reconciled to operating profit in the consolidated statements of income.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

33

Appendix

4. Price Assumptions for FY3/24 Forecasts
Upper: from January 2022 to March 2023
Full year

Lower: from January 2023 to March 2024
Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

FY3/23 (a)-101.55115.31105.9389.98

102.26

Initial (f)Aug. 9

-

85.17

75.00

75.00

75.00

77.45

Revised (f)Nov. 10-85.17*2

81.77*2

85.00

85.00

84.35

FY3/23 (a)94.41

108.65

91.76

82.85

-

94.42

Initial (f)Aug. 9

76.11

76.27

75.00

75.00

-

75.60

Revised (f)Nov. 1076.11*2

73.78*2

80.00

80.00

-

77.46

FY3/23 (a)-101,863

143,821

142,404

117,057

126,286

Initial (f)Aug. 9-88,287

81,40076,20075,80080,422

Revised (f)Nov. 10-89,887*2

89,11589,40091,23389,909FY3/23 (a)-122.50133.58143.32133.39132.86

Initial (f)Aug. 9-134.36130.00130.00130.00131.16

Revised (f)Nov. 10-134.36*2

141.06*2

140.00140.00139.51Market Price

Crude oil price (CIF) *1

WTI

JLC price

Exchange rate*1

USD/bbl

USD/bbl

JPY/Ton

JPY/USD*1 Domestic sales price average of crude oil referring to crude oil (CIF)*2 Actual

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

34

Appendix

5. Sensitivities Analysis on FY3/24 Forecasts Basis
FY3/24
3Q-4Q
Assumptions

Crude oil priceExchange rate

WTI
3Q-4Q:USD 80.00/bbl
Crude oil price (CIF)
3Q-4Q:USD 85.00/bbl
JPY 140.00/USD

Impacts on profit（Million Yen）
Fluctuation

Main factors for change
positive factor “+”/ negative factor “-”Operating profit

Profitattributable toowners of parent

Increase by
1USD/bbl

70

50+ Sales of oil and gas- Increase in LNG procurement cost

1 weaker JPY
against USD

280

170

+ Sales of oil and gas- Increase in LNG procurement cost

【Assumptions】• Changes in equity method profit/loss 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-denominatedreceivables and payables also may occur.
• Actual profits are influenced by various other factors besides crude oil prices and exchange rates.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

35

Appendix

6. Business Overview ① E&P Field[3] Norway: Offshore Blocks

E&P Business site

[5] Russia: Sakhalin 1 Project[4] UK North Sea: Seagull Project[1] Iraq: Garraf Project[6] United States:
Tight Oil Development[A] Japan: Domestic oil and gas fields(10 sites in Hokkaido, Akita, Yamagata, and Niigata)

JAPEX Group E&P business base siteJapan

[2] Indonesia・Kangean ProjectOverseas

10 fields
6 projects

 JAPEX Group oil and gas E&P fields/projects (as of Nov., 2023)
No.

Oil and gas field/Project title (Operator)

Interest Share（JAPEX’s net）

Production type

Status

Production Volume*1

Differ by interest

Crude oil/natural gas

Production/
Development

Undisclosed

A

Japan: Domestic oil and gas fields(Total of 10 locations in Hokkaido, Akita, Yamagata, and Niigata)1

Iraq: Garraff Project (PETRONAS Carigali Iraq Holding B.V.)

30% (16.5%)

Crude oil

Production/
Development

Approx. 155,000bbl

2

Indonesia: Kangean Project (Kangean Energy Indonesia Ltd.)

100％ (25%)

Crude oil/natural gas

Production

Approx. 2,490,000m3(Approx. 15,138boed)

3

Norway: Offshore Blocks (Longboat JAPEX Norge AS*2)

Differ by interest-

Exploration /Development-

4

UK North Sea: Seagull Project (Neptune E&P UK Limited)

15% (15％)

Crude oil/natural gas

Production/
Development-

5

Russia: Sakhalin-1 Project (Sakhalin-1 Limited Liability Company: S1LLC)

30% (4.59％)*3

Crude oil/natural gas

Production/
Development

Undisclosed

6

North America: Tight Oil Development (EOG Resources Inc., etc.)

Differ by interest

Crude oil/natural gas

Production/
Development

Undisclosed*1: Average daily Production for 2Q FY2023 (No.2, 3, 4: Jan.-Jun. 2023, No.1: Apr.-Sep. 2023)*2: Company name was changed upon completion of capital participation (49.9% stake) in Jul. 2023
*3: Pursuant to Government of the Russian Federation order on November 2022,Sakhalin Oil and Gas Development Co., Ltd.(SODECO) was approved to subscribe for 30% equity of the S1LLC.

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

36

Appendix

6. Business Overview ② I/U Field - Gas Supply
Features of JAPEX's domestic gas supply network

High-pressure gas pipeline network over 800 km total

2 LNG terminals for ocean-going carriers

Capable to supply from Sea of Japan and Pacific Ocean Domestic gas supplyDomestic produced gas and regasified LNG supply via pipelines
Receive, storage, regasify, and deliver LNG
LNG satellite system: tank trucks, domestic vessels
Third-party or consignment use of our gas pipelines and LNG terminals etc.

 Respond to diversification of domestic gas supplySupport fuel switching to natural gas from other fossil fuels
Propose and provide energy services in cooperation with city
gas suppliers LNG procurement
Procure competitive LNG with a combination of term and spot
contracts Overseas LNG supply infrastructure

Launch new projects or other process mainly in Southeast Asiawith stronger demands for gasOngoing feasibility study: Northern Vietnam LNG terminal project

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

37

Appendix

6. Business Overview ③ I/U Field - Electricity[1] Abashiri Biomass
BIO
Power Plant No.2&3

JAPEX’s joining power plants are

8 sites

Total(Renewable energy 7 sites

Total output 1,389,800kW

Renewable energy 209,800kW)※ Total output represents gross plant output[2] Mega solar power generation
at JAPEX Hokkaido District OfficePV[3] Yufutsu Solar Power Plant

PV Power plants in development and operation (as of Nov., 2023)
No.

Name

Location

Type

Capacity
(kW)

Share

StatusA

Fukushima Natural Gas Power Plant

Shinchi Town,
Fukushima

Natural gas(LNG)

1,180,000

33%

In operation

1

Abashiri Biomass No.2&3 Power Plants

Abashiri City,
Hokkaido

Biomass(wood chip)

19,80033.8%

In operation

2

Mega solar power generation
at JAPEX Hokkaido District Office

Tomakomai City,
Hokkaido

PV

1,800

100%

In operation

3

Yufutsu Solar Power Plant

Tomakomai City,
HokkaidoPV13,00020%

In operation

4

Mitsuke PV Power Plant

Mitsuke City,
Niigata

PV

250

100%

In operation

5

Tahara Biomass Power Plant

Tahara City,
Aichi

Biomass(wood pellet)

50,00039.9%

In construction

6

Ozu Biomass Power Plant

Ozu City,
Ehime

Biomass(wood pellet)

50,00035%

In construction

7

Chofu Biomass Power Plant

Shimonoseki City,
Yamaguchi

Biomass(wood pellet)

74,95039.9%

In construction

 Other renewable energy project

PHOTON Sustainable Solar Investment Limited Partnership(funding up to 10 billion yen in PV generation projects including
non-FIT projects; 50% of our investment ratio)[7] Chofu Biomass Power Plant

BIO

PV

LNG

[4] Mitsuke PV Power Plant[5] Tahara Biomass Power Plant

BIO

BIO
[6] Ozu Biomass Power Plant

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

[A] Fukushima Natural Gas Power Plant

Gas power plant
Renewable power plant
Renewable power plant(under construction)

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Appendix

6. Business Overview ④ CN Field Ongoing CCS/CCUS initiatives to promote/participate inJapan

Realize hub & cluster model by FY2030

 Consideration in JAPEX Examination of CO2 storage capacity in our oil and gas fields, etc.
 Study of re-injection of associated CO2 from our oil and gas field
operations
 Feasibility study with companies/cross-industry
 Considering of possibility of a business that effectively utilizes CO2
in the Niigata area with Mitsubishi Gas Chemical (May 2021～)
 Feasibility study of CCUS project in Tomakomai area, Hokkaido with
Idemitsu and HEPCO (Jan 2023～)
 JAPEX, Idemitsu, and HEPCO commissioned a CCS Study inTomakomai Area as the “Business Feasibility Study on JapaneseAdvanced CCS Project” in FY2023 by JOGMEC (Jul 2023)
 JAPEX, MGC, TOHOKU-EPCO, HC and NRI commissioned a Study inEast-Niigata Area as the “Business Feasibility Study on JapaneseAdvanced CCS Project” in FY2023 by JOGMEC (Aug 2023)

CommonOverseas

Early profit earning in advanced countries& consideration in emerging countries

 Consideration in JAPEX
 Consideration for participation in CCS/CCUS projects in North
America, Europe and other systematically advanced areas
 Feasibility study on companies/cross-industry
 Joint feasibility study of a CCUS project in Indonesia‘s Sukowati oilfield utilizing bilateral credits (with Pertamina Group and Lemigas)(Jun 2021～)
 Signed Joint Study Agreement with JOGMEC and Pertamina Group to
conduct study towards CO2 injection test at Sukowati oil field inIndonesia (Jun 2023)
 Joint Study on CCS in Malaysia: Jointly conducted site surveys andtechnical studies with a view to implementing CO2 geological storage
with PETRONAS, JGC Global Corporation, and Kawasaki Kisen Kaisha(Jan 2022～)
 Agreed with JFE Steel Corporation to establish CCS value chain
originated from JAPAN in conjunction with the above CCS joint studyin Malaysia in FY2023 (Jun 2023)
 Signed a Memorandum of Understanding with SKK Migas forcooperation in realizing Hub & Cluster CCS/CCUS in Indonesia (Sep2023)
 Capital participation in Blue Spruce Operating LLC of the U.S. toparticipate in our first CCS business study project in advanced
overseas country (Oct 2023)

 Technical and other related study Study on technical issues of energy transportation infrastructure for the realization of a CN society with JFE Engineering

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

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Appendix

7. Integrated Report and IR Materials
Please visit our website for the integrated report and IR materials.
Integrated Report Integrated Reporthttps://www.japex.co.jp/en/ir/library/integratedreport/
The latest issue(Integrated Report 2023, published in October 2023)

is available directly via the following link

https://www.japex.co.jp/en/ir/uploads/pdf/JAPEX_IR2023_e.pdf

Disclosure Materials Archive Financial Results

https://www.japex.co.jp/en/ir/library/result/ Explanatory Materials

https://www.japex.co.jp/en/ir/library/explanatory/

 Securities Reporthttps://www.japex.co.jp/en/ir/library/report/

Performance information, etc.
 Financial highlights for 5 years* Past 10 years’ CVS data is also available Shareholder Returns (Dividends)

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

https://www.japex.co.jp/en/ir/figure/https://www.japex.co.jp/ir/uploads/JAPEX_10yearFinancialData_e.xlsx

https://www.japex.co.jp/en/ir/stock/dividend/40Appendix

8. Glossary 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 FreightCN

Carbon neutral

E&P

Exploration and Production

I/U

Infrastructure & Utility

JCC

Japan Crude Cocktail

WTIWest Texas Intermediate Main Subsidiaries and Affiliates
Japex Garraf

Japex Garraf Ltd.

Iraq / Garraf Project

EMPI

Energi Mega Pratama Inc.

Indonesia / Kangean Project

SODECO

Sakhalin Oil & Gas Development Co., Ltd.

Russia / Sakhalin-1 Project

LBJ

Longboat JAPEX Norge AS

Norway: Offshore Blocks

FGP

Fukushima Gas Power Co., Ltd.

Natural gas-fired electric power generation Business

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

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Cautionary Statement
This document contains future outlooks such as plans, forecasts, strategies, and others which are nothistorical facts and these are made by the management’s judgement based on 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 (FY3/24, for instance, means 12 months ending March 31, 2024)
・Figures in parentheses in "Operating profit," "Ordinary profit," " Share of profit of entities accounted for using equity
method," and " Profit attributable to owners of parent" represent losses in each category.
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, JAPAN TEL: +81-3-6268-7111

Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

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Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

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