Consolidated Financial Results for the Fiscal Year Ended March 31, 2011
<under Japanese GAAP>May 13, 2011
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:
Kazuyuki Yamatsu, Manager, Media Relations and SR, Media and Investor Relations Department
TEL: +81-3-6268-7110 (from overseas)
Scheduled date of ordinary general shareholders’ meeting: June 24, 2011
Scheduled date to commence dividend payments:
June 27, 2011
Scheduled date to file Securities Report:
June 27, 2011
Presentation of supplementary material on financial results: Yes
Holding of financial results presentation meeting (for analysts and institutional investors): Yes(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.
(1)Consolidated financial results for the fiscal year ended March 31, 2011
(April 1, 2010 – March 31, 2011)(Percentages indicate year-on-year changes.)
Consolidated operating results
Net sales

Operating income

Fiscal year ended

Millions of yen

March 31, 2011

199,651

March 31, 2010

179,752 (11.1)

Note: Comprehensive income:% Millions of yen
11.1

FY2011: -2,592 million yen (- %)Ordinary income% Millions of yen

13,8495.6

13,119 (34.7)

Net income% Millions of yen%

17,122 (26.2)

10,010 (44.2)

23,206

17,9393.8

42.8

FY2010: 23,130 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, 2011175.16

–

2.6

3.3

6.9

March 31, 2010

313.88

–

4.7

4.5

7.3

Reference: Equity in earnings (losses) of affiliates: FY2011: 441 million yen(2)

FY2010: 1,059 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, 2011

516,098

393,68974.7

6,743.83

As of March 31, 2010

521,009398,74775.0

6,839.05

Reference: Equity

As of March 31, 2011: 385,428 million yen

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

-1-

(3)

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, 201134,284(24,282)(521)

66,826

March 31, 2010

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

2.

Cash dividends
Annual dividends

Dividend
payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)First
quarter

Secondquarter

Third
quarter

Fiscalyear-end

AnnualTotalannual cash
dividends

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

Fiscal year ended
March 31, 2010

–

20.00

–

20.00

40.00

2,286

12.7

0.6

Fiscal year ended
March 31, 2011

–

20.00

–

20.00

40.00

2,286

22.8

0.6

Fiscal year ending
March 31, 2012
(Forecast)

–

20.00

–

20.00

40.00

3.

19.8

Consolidated financial forecasts for the fiscal year ending March 31, 2012 (April 1, 2011 - March 31, 2012)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Ordinary income

Net income pershare

Net income

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

For the six months
ending September 30,
2011

101,256

9.6

5,722

48.8

7,362

49.4

5,459

187.9

95.52

Fiscal year ending
March 31, 2012

223,479

11.9

11,757(15.1)

15,634(8.7)

11,52815.2

201.70

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 and procedures and methods of presentation
a. Changes due to revisions to accounting standards and other regulations: Yes
b. Changes due to other reasons: None(3)

Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 201157,154,776 shares
As of March 31, 2010
57,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2011
2,105 shares
As of March 31, 2010
1,961 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
Fiscal year ended March 31, 201157,152,736 sharesFiscal year ended March 31, 2010
57,152,903 shares-2-Reference: Summary of non-consolidated results1.
(1)

Non-consolidated financial results for the fiscal year ended March 31, 2011
(April 1, 2010 – March 31, 2011)(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, 2011

137,630

5.0

8,436 (24.3)

10,173 (56.7)

6,169 (66.4)

March 31, 2010

131,082(16.9)

11,150 (14.5)

23,50018,370Net income per
share

Diluted net
income per share

Fiscal year ended

Yen

Yen

March 31, 2011107.95–

March 31, 2010

321.42–(2)% Millions of yen

Net income% Millions of yen

(7.6)

%

(1.1)

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, 2011

470,475

360,75276.7

6,312.08

As of March 31, 2010

478,514368,15176.9

6,441.53

Reference: Equity

As of March 31, 2011: 360,752 million yen

As of March 31, 2010: 368,151 million yen* Indication regarding execution of review procedures
At the time of disclosure of this financial results report, the review procedures for 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 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, 2012, please refer to the section of “(1) Analysis of businessperformance” of “I. Business results” on page 4.
(Method of accessing supplementary material of financial results and contents of presentation meetingof financial results)
On May 13, 2011 (Friday), JAPEX plans to post supplementary material on its website.
In addition, JAPEX plans to hold a presentation meeting for analysts and institutional investors on May 16,
2011 (Monday). JAPEX plans to post the material distributed at this presentation meeting on its website
promptly after the meeting is held.

-3-

I. Business results(1) Analysis of business performance
In the fiscal year ended March 31, 2011, the Japanese economy showed movement towards recovery thanks
to improvements in economic indicators such as personal consumption and corporate earnings from the startof the fiscal year. However, economic conditions remained severe, with indicators such as unemployment
remaining at high levels. In addition, concerns regarding the impact of the Great East Japan Earthquake,
which occurred at the end of the fiscal year, among other factors, have contributed to a sense of uncertainty
regarding the future.
Although the Japan Crude Cocktail (JCC) price had generally moved within the upper $70 range per barrel
from the beginning of the fiscal year, from around the autumn, the price rose slightly, and in January it brokethrough the $90 level. Following that, there was also an impact from political unrest in the Middle East andNorth Africa, and as of the end of the fiscal year, the price had reached a high level of $100 per barrel.
In the currency exchange market, the yen’s value against the US dollar was in the lower ¥90 range at the
beginning of the fiscal year, and the yen rose gradually from then, shifting to the lower ¥80 range between
early autumn and the end of the fiscal year. However, with the contribution of the higher JCC price, the
JAPEX Group’s crude oil prices rose in terms of the average for the fiscal year compared with the previous
fiscal year.
On the other hand, with regard to natural gas, even though its attractiveness compared with other energy
sources is increasing due to price rises for oil products and the like accompanying the rise in the price of
crude oil, there has been an increase in uncertain factors in the market environment, including for the
procurement of liquefied natural gas (LNG). This is due to the continuation of movement towards entering
the market, particularly with the development of infrastructure for supply accompanying deregulation andincreased demand, as well as the effects of the Great East Japan Earthquake.
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 ¥199,651 million, an increase of ¥19,898 million(+11.1%) year on year. The main factors behind the year on year increase in net sales include not only an
increase in net sales thanks to increases in sales volume and sales prices of natural gas, but also an increase in
net sales of oil products and the like by Japex Energy Co., Ltd., which became a consolidated subsidiary of
JAPEX in the third quarter of the previous fiscal year. As for gross profit, despite the existence of factors
pushing up earnings due to the increase in net sales mentioned above, the increase in the cost of sales for oil
products and the like, higher operating costs, such as depreciation, as well as other factors, caused it to stay at¥54,732 million, up ¥447 million (+0.8%) year on year.
Exploration expenses decreased by ¥597 million (-5.8%) year on year to ¥9,798 million, despite an increasein domestic expenditures due to factors such as exploratory drilling activities in Hokkaido and Akita
Prefecture, as the result of a decrease in expenses in Libya and Canada. Along with an increase in selling,
general and administrative expenses of ¥314 million (+1.0%) year on year to ¥31,084 million, this resulted in
an increase in operating income of ¥730 (+5.6%) to ¥13,849 million.
Ordinary income fell back to ¥17,122 million, declining ¥6,084 million (-26.2%) year on year, owing tofactors such as a decrease in dividend income and an increase in loss on valuation of securities.
Income before income taxes and minority interests was ¥12,955 million, a ¥10,413 million decrease (-44.6%)
year on year, owing to factors such as the recording as extraordinary loss of ¥2,339 million of loss on
adjustment for changes of accounting standard for asset retirement obligations, and ¥1,591 million in losses
from the disaster accompanying the Great East Japan Earthquake, as well as the posting in the previous fiscal
year of gain on change in equity to extraordinary income as a result of the issuance of new shares on thelisting of Japan Drilling Co., Ltd., an equity-method affiliate of JAPEX.
Net income was ¥10,010 million, a ¥7,928 million decrease (-44.2%) year on year. There was a reduction in
the decline in the profit margin from income before income taxes and minority interests as a result of adecrease in income taxes.

-4-Below is a breakdown of sales.
(i) E&P
Net sales from E&P (including liquefied natural gas (LNG) and bitumen) came to ¥152,819 million, an
increase of ¥4,214 million (+2.8%) year on year, mainly due to increases in sales volume and sales prices ofnatural gas.
(ii) Contract Services
Net sales from contract services (involved in drilling and geophysical surveys) came to ¥7,031 million, an
increase of ¥2,172 million (+44.7%) 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 on consignment as well as othersubcontracted tasks, came to ¥39,801 million, an increase of ¥13,511 million (+51.4%) year on year, partly
because of an increase in net sales of oil products, etc. of Japex Energy Co., Ltd., which became aconsolidated subsidiary of JAPEX in the third quarter of the previous fiscal year.
Below is a summary of performance by segment. Please take note that segment profits or losses are on thebasis of operating results.
(1) Japan
Net sales from the Japan segment, which are mainly composed of E&P (including liquefied natural gas(LNG)), contract services, and oil products and the like, came to ¥183,078 million in the fiscal year, andsegment profit came to ¥19,798 million.
(2) North America
Net sales from the North America segment, which are mainly composed of E&P (including bitumen), came to¥16,585 million in the fiscal year, and segment profit came to ¥3,249 million.
Outlook for the fiscal year ending March 31, 2012
Our forecast is based on a JCC price of $90 per barrel and an exchange rate of ¥85/$. Actual
non-consolidated results for the fiscal year under review came to $82.69 per barrel and ¥86.24/$.
Net sales for the fiscal year ending March 31, 2012 is expected to increase by ¥23,827 million (+11.9%) fromthe fiscal year under review to ¥223,479 million. Factoring in the impact of the Great East Japan Earthquake,
we expect a reduction in transportation on consignments of natural gas coming in. However, we expect anincrease in sales of natural gas due to higher demand for gas from local distribution companies and industrial
users, as well as an increase in income due to higher sales prices. In terms of sales of crude oil, we expect
income to increase due to an increase in sales of crude oil products bought overseas.
We forecast operating income to decrease ¥2,093 million (-15.1%) from the fiscal year under review to¥11,757 million, due to an increase in cost of sales as a result of factors such as an increase in the volume ofpurchased liquefied natural gas (LNG) and increased operational costs, as well as the significant impact of
our expectation of a decrease in transportation on consignments of natural gas coming in.
For ordinary income, we expect a reduction in declining profit margins due to factors such as a
discontinuation of loss on valuation of securities and forecast a decrease of ¥1,488 million (-8.7%) from thefiscal year under review to ¥15,634 million.
However, for net income in this period, as there will no longer be effects from the application of the“Accounting Standard for Asset Retirement Obligations” or losses due to the impact of the Great East Japan
Earthquake, among other factors, we expect a year on year increase of ¥1,517 million (+15.2%) to ¥11,528
million.

-5-

(2) Analysis of financial condition
a. Balance sheet
Total assets at the end of this fiscal year stood at ¥516,098 million, a decrease of ¥4,911 million (-0.9%) year
on year. Of this, current assets increased ¥17,034 million (+16.1%) to ¥122,604 million, and noncurrent
assets fell ¥21,945 million (-5.3%) to ¥393,493 million.
The primary change in current assets is an increase in cash and deposits along with an increase in short-term
investment securities from the purchase of commercial papers, MMFs and the like, despite a decrease in
short-term loans receivable based on repo transactions.
In noncurrent assets, property, plant and equipment decreased ¥4,122 million (-2.8%), as the factors for
decrease such as depreciation expenses exceeded the factors for increase, such as the increase in production
facilities at the Katakai gas field in Niigata. Investments and other assets decreased ¥17,668 million (-6.7%)
as a result of decreases such as in investment securities owing to a devaluation of the market value of thestock of INPEX CORPORATION and others, despite an increase in long-term loans receivable extended toKangean Energy Indonesia Ltd. (KEI) and EMP Exploration (Kangean) Ltd. (EMPE), both of which areequity-method affiliates.
Total year-end liabilities increased ¥146 million (+0.1%) year on year to ¥122,408 million due to factors suchas an increase in long-term loans payable for the procurement of funds to be directed for investment in KEI
and EMPE, the recording of provision for loss on disaster due to the Great East Japan Earthquake, and anincrease in asset retirement obligations. This was in spite of a decrease in deferred tax liabilities brought
about by factors such as the aforementioned decrease in investment securities. Please take note that provision
for cost of abandonment, which was previously recorded, has been transferred to asset retirement obligations.
Total year-end net assets decreased ¥5,057 million (-1.3%) year on year to ¥393,689 million as a result offactors such as decreases in valuation difference on available-for-sale securities and foreign currencytranslation adjustment, despite an increase in retained earnings.
As a result, the equity ratio at March 31, 2011 was 74.7%.
b. Cash flows
As of March 31, 2011, cash and cash equivalents (hereinafter, “net cash”) totaled ¥66,826 million, up ¥9,181
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 ¥34,284 million. This is mainly attributable to ¥12,955 million
in income before income taxes and minority interests and ¥24,587 million in depreciation and amortization,¥3,595 million in interest and dividends income and ¥ 3,220 million used in payment of income taxes.
(Net cash provided by (used in) investing activities)
Net cash used in investing activities amounted to ¥24,282 million. This is because the main uses, namely¥21,262 million for payments into time deposits, ¥18,799 million for purchase of property, plant andequipment and ¥4,597 million for payments of loans receivable, exceeded increasing factors such as ¥17,184
million in proceeds from withdrawal of time deposits and ¥4,762 million in interest and dividends income
received.
(Net cash provided by (used in) financing activities)
Net cash used in financing activities amounted to ¥521 million. This was because the amount of proceedsfrom long-term loans payable of ¥4,508 million for the procurement of funds to be directed for loans to KEI
and EMPE were exceeded by the amount of total expenditures such as ¥2,286 million of cash dividends paidand ¥2,278 million of repayment of long-term loans payable.

-6-

(Ref.) Trend of cash flow indicators
Fiscal years ended March 31

2007

2008

2009

2010

2011

Equity ratio (%)

71.0

70.8

74.1

75.0

74.7

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

87.1

60.7

45.3

52.0

46.1

Interest-bearing debt to cash flow ratio (years)

0.6

0.7

0.8

0.7

0.8

323.3

148.5

70.7

117.2

170.9

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 here is net cash provided by 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 share year-end dividend) is planned for the current year. The same dividend of ¥40 per share (¥20 per
share interim 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 for natural
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 these-7-resources. 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. As such, with the aim of increasing its corporate value further, JAPEX announced in May
2008 its mid-term business plan, establishing a clear action plan for the attainment of important businesschallenges over the long term by setting the following three activities as core business objectives;“Exploration/ development efficiency and discovery of new resources” “Reinforcing an efficient, integrated
natural gas operation system” “Corporate efforts to research 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, and follow-up measures in consideration of changes in the environment, in particular the subsequent
financial crisis that occurred as a result of the subprime problem in the United States, may be accessed withthe following URLs in our Website.
http://www.japex.co.jp/english/newsrelease/pdf/20080521en_midtermplan_japex.pdf“JAPEX Group Mid-term Business Plan” (Written material, English translation of original Japanese text)
http://www.japex.co.jp/newsrelease/pdf/20080521d_japex.pdf“Supplementary materials to the Mid-term Business Plan” (Slides, Japanese only)
http://www.japex.co.jp/english/newsrelease/pdf/JAPEX_Presentation_E_20090515.pdf“Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2009” (Slides,
English translation of original Japanese text)
http://www.japex.co.jp/english/newsrelease/pdf/JAPEX_Presentation_E_20100517.pdf“Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2010” (Slides,
English translation of original Japanese text)
In the aforementioned Mid-term Business Plan, JAPEX set the fiscal year ending March 31, 2013 for its
numerical targets regarding reserves, sales volume of natural gas and sales amount of natural gas and thecompany’s own, domestically produced crude oil (the target for sales volume of natural gas was later changed
to the fiscal year ending March 31, 2014). However, owing to the efforts made since then, conditions havecome to the point where JAPEX can expect to achieve each of the targets by the fiscal year ending March 31,
2012. As a result, JAPEX has formulated a new Medium-term Business Plan for the five years from the fiscal
year ending March 31, 2012 to the fiscal year ending March 31, 2016.
In this Medium-term Business Plan, consideration is given to expected intensification in global competition
for resource development and unstable movements in energy prices due to the effects of political unrest in the
Middle East and North Africa and the Great East Japan Earthquake, and in addition, further intensification incompetition in the domestic natural gas business and heightened social consciousness of environmental
problems are assumed. Taking these factors into consideration, JAPEX will continue to position the E&P
business, the domestic natural gas business and the environment and innovative technology business as thethree focal points for the purpose of the company’s business expansion, and at the same time, with the
maximization of the value of existing assets in Japan and overseas as a foundation, JAPEX will aim to expand
profits through new investment into these three businesses (particularly at overseas businesses).
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, 2010
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
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 noncurrent assets
Total assets-9-

As of March 31, 2011

24,314
19,774
17,669
4,632
386
5,398
1,336
28,534
3,532(10)
105,569

32,042
21,23528,186
4,535
102
5,579
2,150
24,0874,685(1)122,604

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

151,483(104,953)
46,53071,395(57,811)
13,583
122,785(68,397)
54,388
15,107
6,816
15,398(11,183)
4,215
140,642

7,450
7,450

7,296
7,296

246,141
15,377
1,332
6,211
(46)
(5,793)
263,223
415,439
521,009

221,971
18,791
1,101
9,024
(42)
(5,291)
245,554
393,493
516,098

(Millions of yen)
As of March 31, 2010
Liabilities
Current liabilities
Notes and accounts payable-trade
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
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets- 10 -

As of March 31, 2011

5,914
104
15,96621,986

5,057
87
1,444
13,363
19,95324,471
61,386
6,429
690
6,216
1,080
100,275
122,261

26,89856,531
7,121
645
9,524
1,734
102,455
122,408

14,288271,858(10)
286,137

14,288279,582(10)
293,861

106,89624(2,186)
104,733
7,876
398,747
521,00995,51817(3,968)91,566
8,261
393,689
516,098

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income
Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)
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
Gain on change in equity
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Loss on disaster
Retirement benefit expenses for prior periods
Loss on adjustment for changes of accounting standard
for asset retirement obligations
Other
Total extraordinary losses
Income 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

179,752
125,467
54,285- 11 -(Millions of yen)
Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)
199,651
144,919
54,732

10,865(468)
10,39630,76913,119

10,161(362)
9,798
31,084
13,849

720
8,669
264

520
3,074
181

35

-

2,574
12,264

1,795
5,572

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

199
2
1,060
669
369
2,300
17,122

17
0
1,279
242
1,540

14
28
42

378
575
265

273
1,591
-

-

2,339

158
1,378
23,368
4,135
307
4,443
986
17,9394
4,209
12,955
1,256
904
2,161
10,794783
10,010Consolidated statements of comprehensive income
Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)
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 associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to minority interests-- 12 -(Millions of yen)
Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)
10,794-(11,446)(7)(1,403)

-

(529)

-

(13,387)(2,592)-(3,156)-563

(3) Consolidated statements of changes in net assets(Millions of yen)
Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)

Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)
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- 13 -

14,28814,28814,28814,288

255,499

271,858(2,286)
17,939706
16,359271,858(2,286)
10,0107,724
279,582

(9)

(10)

(0)
(0)
(10)

(0)
(0)
(10)

269,778

286,137(2,286)
17,939706(0)16,358286,137(2,286)
10,010(0)7,723
293,861(Millions of yen)
Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)

Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)
Accumulated other comprehensive income
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 accumulated other comprehensive income
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- 14 -

105,430

106,896

1,465
1,465
106,896(11,377)(11,377)
95,518

(0)

24

24
24
24

(7)
(7)
17

(4,465)(2,186)

2,278
2,278
(2,186)(1,781)(1,781)(3,968)100,964

104,733

3,769
3,769
104,733(13,166)(13,166)
91,566

7,484

7,876

391
391
7,876

384
384
8,261

378,227

398,747(2,286)
17,939
706
(0)
4,160
20,519398,747(2,286)
10,010(0)(12,781)(5,057)
393,689

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)

Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)
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
Increase (decrease) in allowance for overseas investment
loss
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
Loss on adjustment for changes of accounting standard
for asset retirement obligations
Other, net
Subtotal
Income taxes (paid) refund
Net cash provided by (used in) operating activities- 15 -

23,36823,237
575
1,207
360

12,95524,587
272

11

1,060

(24)
695

(12)
691

130

(44)

395

-

(46)

-

-

(501)

(9,389)291(47)-(3,595)
199
(38)

(176)

(178)

(1,059)(1,279)(441)-(2,623)(1,615)

656
(752)
1,214

200
4
(879)

-

2,339

733
37,482
1,466
38,9482,502
37,505(3,220)34,284

(Millions of yen)
Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)

Fiscal year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)
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
Payments for asset retirement obligations
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Payments of recoverable accounts
Payments of loans receivableCollection of loans receivable
Interest and dividends income received
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Interest expenses paid
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- 16 -(14,892)
10,3681,159(29,074)
12(4,519)(5,695)(21,262)
17,184
510(18,799)
35
(313)
(249)
(2,073)

5,062

3,388

(2,025)58
10,523(276)(29,300)(2,877)(4,597)
53
4,762
(42)
(24,282)

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

4,508(2,278)(0)(2,286)
(178)
(200)
(86)
(521)

75

(299)

5,669
51,97557,6459,181
57,64566,826

IV. Others
Status of Production and Sales
1. Production
Fiscal year ended March 31, 2010
(April 1, 2009 –March 31, 2010)

Fiscal year ended March 31, 2011
(April 1, 2010 –March 31, 2011)

614,401

563,374(21,556)(5,352)

1,250,630

1,268,801(48,395)(10,896)

57,59944,565

411,603409,116(411,603)(409,116)

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, 2010
(April 1, 2009 –March 31, 2010)
AmountVolume(Millions of yen)
Crude oil (kl)

1,714,012

69,3081,489,705

67,4881,499,236

55,593

1,553,770

61,090

LNG (t)186,268

12,268

209,549

14,100

Bitumen (kl)

411,394

11,433409,359

10,1413

Natural gas (thousand m )E&P

Subtotal148,604

152,819

4,859

7,031

Oil products/merchandise-

32,523

Others-7,278

Subtotal

26,28939,801

Total

179,752

199,651

Contract services
Otherbusinesses

Fiscal year ended March 31, 2011
(April 1, 2010 –March 31, 2011)
AmountVolume(Millions of yen)

Notes: 1. Effective from the fiscal year ended March 31, 2011, JAPEX changed the presentation method of “Other
businesses” to disclose its sales amounts breakdown as “Oil products/merchandise” and “Others,” therefore, sales
amounts relating to “Oil products/merchandise” and “Others” for the fiscal year ended March 31, 2010 are
omitted.
2. “Oil products/merchandise” includes liquefied petroleum gas (LPG), fuel oil, diesel oil and kerosene, and “Others”
includes the transportation of natural gas and oil products on consignment as well as other subcontracted tasks.
3. Monetary amounts in the table do not include consumption taxes.

- 17 -