Consolidated Financial Results for the Fiscal Year Ended March 31, 2012
<under Japanese GAAP>May 11, 2012
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:
Hajime Kondo, General Manager, Media and Investor Relations Department
TEL: +81-3-6268-7110 (from overseas)
Scheduled date of ordinary general shareholders’ meeting: June 26, 2012
Scheduled date to commence dividend payments:
June 27, 2012
Scheduled date to file Securities Report:
June 27, 2012
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, 2012
(April 1, 2011 – March 31, 2012)(Percentages indicate year-on-year changes.)
Consolidated operating results
Net sales

Operating income

Millions of yen

March 31, 2012

230,638

15.5

15,045

8.6

22,159March 31, 2011

199,651

11.1

13,8495.6

17,122 (26.2)

FY2012: 9,953 million yen (- %)% Millions of yen

Net income

Fiscal year ended

Note: Comprehensive income:% Millions of yen

Ordinary income% Millions of yen
29.4

17,027%70.1

10,010 (44.2)

FY2011: -2,592 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, 2012

297.92

–

4.4

4.2

6.5

March 31, 2011175.16

–

2.6

3.3

6.9

Reference: Equity in earnings (losses) of affiliates: FY2012: -408 million yen(2)

FY2011: 441 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, 2012

532,890406,77373.7

6,869.27

As of March 31, 2011

516,098

393,68974.7

6,743.83

Reference: Equity

As of March 31, 2012: 392,597 million yen

As of March 31, 2011: 385,428 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, 2012

37,172(13,950)

9,856

99,803

March 31, 201134,284(24,282)(521)

66,826

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, 2011

–

20.00

–

20.00

40.00

2,286

22.8

0.6

Fiscal year ended
March 31, 2012

–

20.00

–

20.00

40.00

2,286

13.4

0.6

Fiscal year ending
March 31, 2013
(Forecast)

–

20.00

–

20.00

40.00

3.

13.8

Consolidated financial forecasts for the fiscal year ending March 31, 2013 (April 1, 2012 - March 31, 2013)(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,
2012

95,823

(8.4)

4,858

(21.9)

5,503(30.2)

6,441

1.7

112.69Fiscal year ending
March 31, 2013

214,653(6.9)

10,003(33.5)

16,819(24.1)

16,526(2.9)

289.15

*
(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 restatement of prior period financial
statements after error corrections
a. Changes in accounting polices due to revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: 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, 201257,154,776 shares
As of March 31, 201157,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2012
2,139 shares
As of March 31, 2011
2,105 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
Fiscal year ended March 31, 201257,152,657 sharesFiscal year ended March 31, 201157,152,736 shares-2-Reference: Summary of non-consolidated results1.
(1)

Non-consolidated financial results for the fiscal year ended March 31, 2012
(April 1, 2011 – March 31, 2012)(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, 2012

173,832

26.3

10,351March 31, 2011

137,630

5.0

8,436 (24.3)

Net income per
share

Diluted net
income per share

Fiscal year ended

Yen

Yen

March 31, 2012

287.36–

March 31, 2011107.95–(2)% Millions of yen
22.7

18,627

Net income% Millions of yen

%

83.1

16,423 166.2

10,173 (56.7)

6,169 (66.4)

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, 2012

482,174

368,81376.5

6,453.14

As of March 31, 2011

470,475

360,75276.7

6,312.08

Reference: Equity

As of March 31, 2012: 368,813 million yen

As of March 31, 2011: 360,752 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. 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, pleaserefer to the section of “(1) Analysis of business performance” of “1. Business results” on page 4 of the attachedmaterial to the financial results report.
(Method of accessing supplementary material on financial results and contents of presentation meetingof financial results)
On May 11, 2012 (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 14,
2012 (Monday). JAPEX plans to post the material distributed at this presentation meeting on its website
promptly after the meeting is held.

-3-

(Attached Material)
1. Business results(1) Analysis of business performance
In the fiscal year ended March 31, 2012, the Japanese economy was more severe than when the fiscal year
started on account of the impact of the Great East Japan Earthquake. Despite signs of a gentle recovery fromthe second half of the fiscal year, the economic outlook continued to be troublesome, particularly with respect
to declining corporate earnings and the ongoing difficult employment environment.
The Japan Crude Cocktail (JCC) price began the fiscal year at the high level of $110 per barrel owing to thepolitical unrest in the Middle East and North Africa and rose to as high as $118 per barrel in May. Since then,although the price hovered above and below the $110 level until tensions in the Middle East pushed up theprice again, and as of the end of the fiscal year, the price had reached a high level of $120.
In the currency exchange market, the strong-yen trend of the previous fiscal year continued in this fiscal year
as well. The yen’s value against the US dollar was in the lower ¥80 range at the beginning of the fiscal year
and rose in strength to the unprecedented higher ¥76 range in early autumn. However, with the contributionof 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, against a backdrop of rising demand for natural gas, particularly
as a fuel for electricity generation due to the Great East Japan Earthquake, it became increasingly difficult to
procure the feedstock for liquefied natural gas (LNG). Moreover, as a result of continued movement towards
entering the market, particularly with respect to the development of supply infrastructure, the JAPEX Grouphas faced with a difficult 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 ¥230,638 million, an increase of ¥30,986 million(+15.5%) year on year. The main factors behind the year-on-year increase in net sales were the increase insales prices due to crude oil price remaining high and an increase in sales volume of natural gas, among
others. As for gross profit, despite the existence of factors pushing up earnings due to the increase in net sales
mentioned above, the rise in the purchase price of LNG caused by the soaring crude oil price, and an increasein expenses involved in handling peak winter demand for natural gas in Hokkaido, as well as other factors,
caused it to stay at ¥56,278 million, up ¥1,545 million (+2.8%) year on year.
Exploration expenses decreased by ¥1,992 million (-20.3%) year on year to ¥7,805 million, mainly due to adecrease in domestic expenditures, despite an increase in overseas expenditures in Canada. Selling, generaland administrative expenses increased ¥2,342 million (+7.5%) year on year to ¥33,426 million, due toupgrading and expanding of the overseas business divisions and reorganization of the technical divisions aspart of organizational restructuring conducted in June 2011. As a result, operating income increased ¥1,195
million (+8.6%) to ¥15,045 million.
Ordinary income increased ¥5,037 million (+29.4%) to ¥22,159 million, owing to factors such as increases in
dividend income and gain on sales of securities and decreases in loss on valuation of securities and foreignexchange losses.
Income before income taxes and minority interests was ¥22,471 million, a ¥9,515 million increase (+73.4%)
year on year, owing to factors such as the recording as extraordinary income of insurance income received fordamages caused by the Great East Japan Earthquake, and as extraordinary losses of loss on adjustment forchanges of account standard for asset retirement obligations and loss on disaster due to the Great East Japan
Earthquake in the previous fiscal year.
As a result of an increase in income taxes, net income was ¥17,027 million, a ¥7,016 million increase(+70.1%) year on year.

-4-Below is a breakdown of sales.
(i) E&P
Net sales from E&P (including liquefied natural gas (LNG) and bitumen) came to ¥180,779 million, an
increase of ¥27,960 million (+18.3%) year on year. Although the absence of sales of crude oil productsbought at Japan Canada Oil Sands Limited (JACOS) had a negative impact, it was outweighed by the rise insale prices accompanying the highly remaining crude oil price, an increase in sales volume of natural gas andan increase in net sales of crude oil products bought owing to higher sales volume for Sakhalin crude oil.
(ii) Contract Services
Net sales from contract services (involved in drilling and geological surveys) came to ¥8,360 million, an
increase of ¥1,329 million (+18.9%) 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 ¥41,497 million, an increase of ¥1,696 million (+4.3%) year on 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 are mainly composed of E&P (including liquefied natural gas (LNG)),
contract services, and oil products and the like. Due to the factors such as the rise in sale prices accompanying
the highly remaining crude oil price, an increase in sales volume of natural gas and an increase in net sales ofcrude oil products bought owing to higher sales volumes for Sakhalin crude oil, net sales for the fiscal year
came to ¥221,351 million, an increase of ¥38,273 million (+20.9%) year on year and segment profit came to¥23,978 million, an increase of ¥4,180 million (+21.1%).

(2) North America
Net sales from the North America segment are mainly composed of E&P (including bitumen). Due to factors
such as the absence of sales of crude oil products bought at JACOS, decrease in production volumes due toinspection of bitumen facilities, etc. in the first half of the fiscal year and the impact of the strong yen, net
sales for the fiscal year came to ¥9,297 million, a decrease of ¥7,287 million (-43.9%) year on year. Segment
profit came to ¥1,244 million, a decrease of ¥2,004 million (-61.7%) due to increased exploration expenses in
Canada.
Outlook for the fiscal year ending March 31, 2013
Our forecast is based on a JCC price of $100 per barrel and an exchange rate of ¥80/$. Actual
non-consolidated results for the fiscal year under review came to $112.43 per barrel and ¥78.93/$.
Net sales for the fiscal year ending March 31, 2013 is expected to decrease by ¥15,985 million (-6.9%) fromthe fiscal year under review to ¥214,653 million. This is because in addition to expecting a decrease in salesof natural gas due to weaker demand from utility gas customers, etc., we also expect a decrease in sales ofcrude oil due to decrease in production volumes and lower prices.
We forecast operating income to decrease ¥5,042 million (-33.5%) from the fiscal year under review to¥10,003 million because although we expect a decline in selling, general and administrative expenses, we
also expect exploration expenses to increase as a result of active exploration projects in Japan and overseas,
further decreasing the profit margin.
We forecast ordinary income to decrease ¥5,341 million (-24.1%) from the fiscal year under review to¥16,819 million as we expect a decrease in dividends income.
However, concerning net income, we forecast a decrease of ¥501 million (-2.9%) to ¥16,526 million,
considering the recording of extraordinary income relating to the sale of assets etc. and a reduced decline in
the profit margin accompanying lower income taxes.

-5-(2) Analysis of financial condition
a. Balance sheet
Total assets at the end of this fiscal year stood at ¥532,890 million, an increase of ¥16,792 million (+3.3%)
year on year. Of this, current assets increased ¥42,449 million (+34.6%) to ¥165,054 million, and noncurrent
assets fell ¥25,657 million (-6.5%) to ¥367,836 million.
The primary changes in current assets consisted mainly of an increase in short-term investment securities
from the purchase of commercial papers for short-term investment purposes and an increase in short-termloans receivable based on repo transactions.
In noncurrent assets, property, plant and equipment decreased ¥7,782 million (-5.5%), as the factors for
decrease such as depreciation expenses exceeded the factors for increase, such as the construction of new
facilities including a CO2 emission reduction facility and an LNG receiving terminal for domestic vessels.
Investments and other assets decreased ¥17,734 million (-7.2%) as a result of decreases such as in investment
securities owing to a devaluation of the market value of the stock of INPEX CORPORATION and others,
despite an increase in long-term loans receivable extended to Kangean Energy Indonesia Ltd. (KEI) and EMP
Exploration (Kangean) Ltd. (EMPE), both of which are equity-method affiliates, and an increase in theinvestments relating to development of the Garraf oilfield in Iraq.
Total year-end liabilities increased ¥3,708 million (+3.0%) year on year to ¥126,117 million mainly due tofactors such as an increase in long-term loans payable for the procurement of funds to be directed forinvestments in KEI and EMPE, the recording of lease obligations for lease of domestic vessels for LNG
transportation, and increase in notes and accounts payable-trade. This was in spite of a decrease in deferred
tax liabilities brought about by factors such as the aforementioned decrease in investment securities.
Total year-end net assets increased ¥13,083 million (+3.3%) year on year to ¥406,773 million as a result offactors such as an increase in retained earnings and a rise in minority interests from a third-party allocation of
new shares by consolidated subsidiary Japex Garraf Ltd., despite a decline in the valuation difference on
available-for-sale securities and foreign currency translation adjustment.
As a result, the equity ratio at March 31, 2012 was 73.7%.
b. Cash flows
As of March 31, 2012, cash and cash equivalents (hereinafter, “net cash”) totaled ¥99,803 million, up¥32,976 million, compared to the end of the previous fiscal year. Below is a summary of cash flows for eachactivity.
(Net cash provided by (used in) operating activities)
Net cash provided by operating activities was ¥37,172 million. The main factors were ¥22,471 million inincome before income taxes and minority interests, ¥23,902 million in depreciation and amortization, ¥6,876
million in interest and dividends income and ¥2,325 million used in the difference between notes andaccounts payable-trade and notes and accounts receivable-trade.
(Net cash provided by (used in) investing activities)
Net cash used in investing activities amounted to ¥13,950 million. This is because the main uses, namely¥19,095 million for payments into time deposits, ¥11,618 million for purchase of property, plant andequipment, ¥6,406 million for payments of recoverable accounts and ¥8,018 million for payments of loans
receivable, exceeded increasing factors such as ¥19,446 million in proceeds from withdrawal of time deposits,¥4,194 million in proceeds from sales and redemption of investment securities and ¥7,453 million in interestand dividends income received.

(Net cash provided by (used in) financing activities)
Net cash provided by financing activities was ¥9,856 million. This was because the amount of proceeds fromlong-term loans payable of ¥7,895 million for the procurement of funds to be directed for loans to KEI and
EMPE and proceeds from stock issuance to minority shareholders of ¥5,908 million from a third-party
allocation of new shares by consolidated subsidiary Japex Garraf Ltd. were exceeded by the amount of total
expenditures such as ¥2,286 million of cash dividends paid and ¥778 million of repayment of long-term loans
payable.

-6-Reference: Trend of cash flow indicators
Fiscal years ended March 31

2008

2009

2010

2011

2012

Equity ratio (%)

70.8

74.1

75.0

74.7

73.7

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

60.7

45.3

52.0

46.1

41.3

Interest-bearing debt to cash flow ratio (years)

0.7

0.8

0.7

0.8

0.9

148.5

70.7

117.2

170.9

197.6

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.

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 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 theseresources. Additionally, with factors such as intensification in the competitive environment for the domestic natural-7-

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 rapid transformation. JAPEX,
under the policy of its previous mid-term plan, has been working on establishing a clear action plan for theattainment of important business challenges over the long term by setting the following three activities as corebusiness objectives; “Sustaining and increasing reserves through exploration and 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 theCompany’s business expansion, particularly positions “Sustaining and increasing reserves through exploration anddevelopment” (E&P business) as the core for future growth and focuses on shifting investment to overseas in the
E&P business.
Details of the JAPEX Group Medium-Term Business Plan (for fiscal years 2012 to 2016) 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)
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.
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. In addition, by re-investing the cash flows provided byproduction, 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 the environment and technology business 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.

-8-3. Consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2011
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, 2012

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

29,80527,392
51,870
4,407
99
4,952
1,722
39,2955,509(1)165,054

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

154,526(111,594)
42,932
71,662(62,095)
9,566
133,791(77,458)
56,332
15,097708
19,870(11,649)
8,221
132,859

7,296
7,296

7,156
7,156

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

192,726
23,407878
15,439(38)(4,593)
227,820
367,836
532,890

(Millions of yen)
As of March 31, 2011
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
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, 2012

5,057
87
1,444
13,363
19,953

7,251
94
115
25,51632,977

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

26,19842,601
7,129
745
9,670
6,795
93,140126,117

14,288279,582(10)
293,861

14,288294,323(10)
308,601

95,51817(3,968)91,566
8,261
393,689
516,098

89,36620(5,391)
83,995
14,176
406,773
532,890

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income
Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)
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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of securities
Loss on valuation of securities
Equity in losses of affiliates
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of allowance for doubtful accounts
Gain on sales of noncurrent assets
Insurance income
Other
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on disaster
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

199,651
144,919
54,732- 11 -(Millions of yen)
Fiscal year ended
March 31, 2012
(April 1, 2011 –March 31, 2012)
230,638
174,359
56,278

10,161(362)
9,798
31,084
13,8497,805
7,805
33,426
15,045

520
3,074
181
1,795
5,572

1,368
5,507
881
1,199
8,957

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

219
407
360
408
193
254
1,843
22,159

14
28
42

140
620
17
779

273
1,591

460
7

2,339

-

4
4,209
12,955
1,256
904
2,161
10,794783
10,0100468
22,471
3,709
1,037
4,746
17,724696
17,027

Consolidated statements of comprehensive income
Fiscal year ended
March 31, 2011
(April 1, 2010–
March 31, 2011
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

10,794- 12 -(Millions of yen)
Fiscal year ended
March 31, 2012
(April 1, 2011 –March 31, 2012)
17,724(11,446)(7)(1,403)(6,191)(10)(1,414)

(529)

(154)

(13,387)(2,592)(7,770)
9,953(3,156)

9,455

563

497

(3) Consolidated statements of changes in net assets(Millions of yen)
Fiscal year ended
March 31, 2012
(April 1, 2011 –March 31, 2012)

Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)
Shareholders’ equity
Capital stock
Balance at the beginning of current period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current 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 beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period- 13 -

14,28814,28814,28814,288271,858

279,582(2,286)
10,0107,724
279,582(2,286)
17,027
14,740294,323

(10)

(10)

(0)
(0)
(10)

(0)
(0)
(10)

286,137

293,861(2,286)
10,010(0)7,723
293,861(2,286)
17,027(0)
14,740308,601

(Millions of yen)
Fiscal year ended
March 31, 2012
(April 1, 2011 –March 31, 2012)

Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current 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 beginning of current 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 beginning of current 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 beginning of current 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 beginning of current 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 beginning of current period
Changes of items during the period
Dividends from surplus
Net income
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 -

106,896

95,518(11,377)(11,377)
95,518(6,152)(6,152)89,366

24

17

(7)
(7)
17

3
3
20

(2,186)(3,968)(1,781)(1,781)(3,968)(1,422)(1,422)(5,391)

104,733

91,566(13,166)(13,166)
91,566(7,571)(7,571)
83,995

7,876

8,261

384
384
8,261

5,914
5,914
14,176

398,747

393,689(2,286)
10,010(0)(12,781)(5,057)
393,689(2,286)
17,027(0)(1,656)
13,083406,773

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2012
(April 1, 2011 –March 31, 2012)

Fiscal year ended
March 31, 2011
(April 1, 2010–
March 31, 2011
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
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 allowance for overseas investment
loss
Interest and dividends income
Interest expenses
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
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
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
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
Proceeds from dividends of residual property
Other, net
Net cash provided by (used in) investing activities- 15 -

12,95524,587272

22,471
23,902
457

1,060

360

(12)
691

(3)
7

(44)

99

(501)

(697)

(3,595)199(38)(6,876)
219
-

(178)

(474)

(441)

408

(1,615)(6,236)

200
4
(879)

758
3,910
74

2,339

-

2,502
37,505(3,220)34,284848
39,229(2,057)
37,172(21,262)
17,184
510(18,799)
35
(313)
(249)
(2,073)(19,095)
19,446(401)
1,900(11,618)
191
(217)
(447)
(1,586)

3,388

4,194

(2,877)(4,597)
53
4,762
(42)
(24,282)(6,406)(8,018)
115
7,453
472
65
(13,950)

Fiscal year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)
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
Repayments of lease obligations
Proceeds from stock issuance to minority shareholders
Repayments to minority shareholders
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 -(Millions of yen)
Fiscal year ended
March 31, 2012
(April 1, 2011 –March 31, 2012)

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

7,895
(778)
(0)
(2,286)
(265)
(188)
(270)
5,908
(149)
(9)
9,856

(299)

(101)

9,181
57,64566,82632,976
66,82699,803

4. Others
Status of Production and Sales
1. Production
Fiscal year ended March 31, 2011
(April 1, 2010 –March 31, 2011)

Fiscal year ended March 31, 2012
(April 1, 2011 –March 31, 2012)

563,374

547,777(5,352)(2,527)

1,268,801

1,288,978(10,896)(4,435)44,56522,943409,116

382,394(409,116)(382,394)

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, 2011
(April 1, 2010 –March 31, 2011)
AmountVolume(Millions of yen)
Crude oil (kl)

1,489,705

67,4881,395,833

80,754

1,553,770

61,0901,730,381

74,957

LNG (t)209,549

14,100216,21115,930

Bitumen (kl)409,359

10,141

382,3789,137

3

Natural gas (thousand m )E&P

Subtotal

152,819

180,779

7,031

8,360

Oil products/merchandise

32,52336,585

Others

7,278

4,912

Subtotal

39,801

41,497

Total

199,651

230,638

Contract services
Otherbusinesses

Fiscal year ended March 31, 2012
(April 1, 2011–
March 31, 2012)
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 on consignment as well as other subcontracted tasks.
2. Monetary amounts in the table do not include consumption taxes.

- 17 -