Note: The following report is an English translation of the Japanese-language original.

Consolidated financial results
for the three months ended June 30, 2012
＜Supplementary material＞
August 3, 2012

Japan Petroleum Exploration Co., Ltd.
copyright©2012 JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights reserved.

Cautionary statement
Any information contained herein with respect to JAPEX’s plans, estimates, strategies
and other statements that are not historical facts are forward-looking statements about
the future performance of JAPEX. Readers should be aware that actual results andevents may differ substantially from these projections due to various factors.
The provision of this document should not be construed as a solicitation for investment.
Copyright : All information contained herein is protected by copyright, and may not be
copied or reproduced without the prior consent of JAPEX.
Note: The following abbreviations are used within this document:
1H = First half (1Q-2Q)
2H = Second half (3Q-4Q)(a) = Actual result(e) = Estimate
Any inquiries about the information contained herein or other Investor Relations questions
should be directed to:Investor Relations Group, Media & Investor Relations Department,
Japan Petroleum Exploration Co., Ltd.
TEL: +81-3-6268-7111

2

$140

¥120

$130

¥115

$120

¥110

$110

$ denominated price $/bbl (left axis)

¥105

$100

¥100

$90

¥95

$80

¥90

$70

¥85

Exchange rate \/$(right axis)

$60

¥80

$50

¥75

$40

¥70
2009-072009-08
2009-09
2009-10
2009-11
2009-122010-01
2010-022010-032010-04
2010-05
2010-06
2010-072010-08
2010-092010-10
2010-112010-122011-01
2011-02
2011-03
2011-04
2011-05
2011-06
2011-072011-08
2011-09
2011-10
2011-11
2011-12
2012-01
2012-022012-032012-04
2012-05
2012-06
2012-07[Price] $denominated $/bblTrends in Crude oil prices and Foreign exchange rates

Japan Crude Cocktail (JCC) Price in the first 10 days of July 2012
on a prompt report basis : USD 108.54 / bbl

Yen 79.49 / USD
3

Revised estimates for 1H FY2013 (Summary)
FY2013
1H (a)FY20131H (e)

Initial estimate

FY20131H (e)

Change[ Billion ￥]Revised estimate

Billion ￥

104.5

95.8

Operating income

6.2

4.8

4.8+0%

Ordinary income

7.8

5.5

5.0(8%)Net income

6.3

6.4

6.1(5%)Net sales

Billion ￥
9110

106.2

104.5

106.2 +11% 105
7.810095USD/bbl

Exchange rate Yen/USD

112.38100.00115.47

81.07

80.00

80.74

Bitumen price

CAD/bbl

45.70

54.12

52.74

Exchange rate

Yen/CAD

83.38

80.00

76.77

Main points of revised estimates for 1H :-Increase in net sales mainly reflecting the increase of sales
volume of purchased crude oil from overseas.

795.8
6.2

6.4

6.3

4.8

4.8

5.0

6585

480

375

270

165

FY2012 1H(a)FY2013 1H(e)(e)
Initial estimate

Operating income (right axis)
Ordinary income (right axis)
Net income (right axis)

46.15.590
JCC price8

Net Sales (left axis)

FY2013 1H(e) (e)Revised estimate

Consolidated financial estimates for the FY2013 [Highlight]
FY2012[ Billion ￥]1Q(a)FY2013change1Q-2Q(a)Full(a)

1Q
(a)

1Q-2Q
(e)

Full(e)

1Q

1Q-2Q

Full

Net sales

52.4

104.5

230.6

56.4

106.2

214.6

4.0

1.6

(15.9)

Operating income

4.6

6.2

15.0

3.6

4.8

10.0

(1.0)

(1.3)

(5.0)

Ordinary income

5.5

7.8

22.1

4.4

5.0

16.8

(1.1)

(2.8)

(5.3)

Net income

4.4

6.3

17.03.4

6.1

16.5

(0.9)

(0.1)

(0.5)

JCC price

USD/bbl110.80112.38112.43124.11115.47100.00

13.30

3.09

(12.43)

Exchange rate

Yen/USD

82.25

81.07

87.93

81.26

80.74

80.00

(0.99)(0.33)

1.07

Bitumen price

CAD/bbl

40.91

45.70

49.81

54.22

52.74

52.91

+13.31

+7.04

+3.10

Exchange rate

Yen/CAD

85.66

83.38

76.22

82.52

76.77

80.00

▲3.14

▲6.61

+3.78

Regarding consolidated financial estimates, an examination of the first quarter results revealed that no changes are necessary to the fullyear forecasts released on May 11, 2012.

FY2013
FY2013 vs.
FY2012
Operating income
Point Exploration expenses-¥ 6.0 billion

 Non-operating income(expenses)-¥ 0.3 billion-Dividends income

 Extraordinary income(losses)+¥ 2.0 billion-Gain on assignment of working interest Income taxes+¥ 2.7 billion
5-¥ 5.0 billion
Ordinary income-¥ 5.3 billion
Net income-¥ 0.5 billion

Actual sales of Natural gas in 1Q FY2013 ( vs. FY2012 )Sales volume : Million M3
Net sales : Million ￥Natural gas:
Of which,
Domestically produced gas:

FY2012FY2013

1Q (a)

1Q (a)

changeSales volume368358(9)Net sales

15,29915,837538

Sales volume270260(9)-Rise in sales prices.

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.

Sales volume （total）

Million M3400

Of which, domestically produced gas

350368

358

300
250

270260

Sales volume decreased by 9 million M3 (-3%) vs. FY2012- Decrease in demand for industrial users.

200150Net sales increased by ¥ 5 billion (+4%) vs. FY2012-Increase in rise of sales prices

10050
FY2012/1Q

FY2013/1Q

6Actual sales of Crude oil in 1Q FY2013 ( vs. FY2012 )FY2012FY2013

1Q (a)

1Q (a)

Sales volume462

473

11Net sales

24,23525,077842

Domestically produced
crude oil:

Sales volume

129

130

1Net sales

7,658

8,292633

Overseas subsidiary
crude oil:

Sales volume00(0)Net sales

3230

(1)

Sales volume

93

97

3

Net sales

2,057

2,781724

110.80 124.11

13.30

Sales volume : Thousand KL
Net sales : Million ￥Crude oil:change-Increase in sales volume ofpurchased crude oil.

Breakdown of equity oil

Bitumen:-Rise in sales prices.

-Rise in sales prices.

Oil price and Exchange rate assumptions
JCC price

USD/bblExchange rate

Yen / USD

82.25

81.26

(0.99)

Bitumen price

CAD/bbl

40.91

54.22

13.31

Exchange rate

Yen /CAD

85.66

82.52

(3.14)

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil. Royalty is excluded in thenet sales and price of Bitumen.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex (U.S.) Corp., an overseas consolidatedsubsidiary.

7Actual results for 1Q FY2013 ( vs. FY2012 )
FY12

FY13

1Q (a)

1Q (a)Net sales

52,46256,4724,010

Gross profit

13,68815,497

1,809

Exploration expenses

1,569

4,180

2,611

SG&A expenses

7,444

7,673

229

Operating income

4,674

3,642(1,031)

899

795(103)

5,573

4,438

(1,135)74(232)

(307)

1,139

659(479)

8675

(11)

4,422

3,471(950)[ Million ￥]Non-operating income(expenses)
Ordinary income
Extraordinary income(losses)
Income taxes
Minority interests in income
Net incomechangeCauses of increase(+) or decrease(-)
Gross profit

8

Domestic crude oil and natural gas +0.3 billion
LNG substitution expense-¥0.6 billion

Transportation fee of natural gas+1.2 billion

Overseas consolidated subsidiaries -¥0.8 billion

Exploration expenses
Domestic exploration
Overseas exploration-¥1.8 billion-¥0.7 billion

Non-operating income (expenses)
Dividends income+¥0.3 billion
Equity in losses of affiliates -¥0.4 billion

Revised estimated Natural gas sales in 1H FY2013 (vs. Initial estimate)
Sales volume : Million M3
Net sales : Million ￥Natural gas:
Of which,
Domestically produced gas:

FY2013

FY20131H (e)

1H (e)

Initial estimate

Revised estimatechangeSales volume698694▲3Net sales

31,38531,905+520

Sales volume519

499

▲20

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Million M3

Sales volume （total）

800
700
600
500

698519400

Of which, domestically produced gas

694

499

Sales volume decreased by 3 million M3 (-0%) vs. FY2012

300

Net sales increased by ¥ 0.5 billion (+2%) vs. FY2012-Increase in rise of sales prices

200100Initial
estimate

Revisedestimate

9Revised estimated Crude oil sales for 1H FY2013 (vs. Initial estimate)
Sales volume : Thousand KLNet sales : Million ￥FY2013

FY20131H (e)

1H (e)

Initialestimate

RevisedestimatechangeSales volume

804

917

+112

Net sales

37,57745,265+7,687

Domestically produced
crude oil:

Sales volume251

238▲13Net sales

12,92014,011+1,091

Overseas subsidiary
crude oil:

Sales volume

1

1+0

Net sales

48

62+14

Sales volume173

186+13Net sales

4,705

4,774+69

100.00
80.00
54.12
80.00

115.47
80.74
52.74
76.77

+15.47
+0.74
▲1.38
▲3.23

Crude oil:

- Increase in sales volumeof purchased crude oilfrom overseas

Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

USD/bblExchange rate

Yen / USD

Bitumen price

CAD/bblExchange rate

Yen /CAD

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil. Royalty is excluded in the net sales andprice of Bitumen.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex (U.S.) Corp., an overseas consolidated subsidiary.

10Revised estimates for 1H FY2013 (vs. Initial estimate)
FY2013

FY20131H (e)

1H (e)

Initialestimate

Revisedestimate

Net sales

95,823106,210+10,387

Gross profit

27,81426,964▲850

Exploration expenses

8,275

7,490

▲786

SG&A expenses

14,68014,598▲82

Exploration expenses

Operating income

4,858

4,876+18

Domestic exploration+¥0.4 billion

Overseas exploration+¥0.3 billion

645199▲445

Ordinary income

5,503

5,076

▲427

Extraordinary income(losses)

2,080

1,988

▲92Income taxes

730379▲351

Minority interests inincome

413539+1276,441

6,145

▲296

[ Million ￥]Non-operating income(expenses)

Net incomechangeCauses of increase(+) or decrease(-)

11Gross profit
Domestic crude oil and natural gas-1.4 billion

Transportation fee of natural gas
Overseas consolidated subsidiaries+¥0.4 billion+0.3 billion

Non-operating income (expenses)
Dividends income+¥0.3 billion
Equity in losses of affiliates -¥0.8 billion

Revised estimated Natural gas sales in 1H FY2013 (vs. FY2012)
Sales volume : Million M3
Net sales : Million ￥Natural gas:
Of which,
Domestically produced gas:

FY2012FY2013

1H (a)

1H (e)

Initial estimate

Revised estimatechangeSales volume742694▲48Net sales

31,17031,905+734

Sales volume522499▲23

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Million M3

Sales volume （total）

800700742600
500522400

Of which, domestically produced gas

694499

Sales volume decreased by 48 million M3 (-6%) vs. FY2012- Decrease in demand for industrial users.
Net sales increased by ¥ 0.7 billion (+2%) vs. FY2012- Increase in rise of sales prices

300200100
FY2012/1H(a)FY2013/1H(e)(e)

12Revised estimated Crude oil sales in 1H FY2013 (vs. FY2012)
FY2012FY2013

1H (a)

1H (e)

Initial estimate

Revised estimate

Sales volume : Thousand KL
Net sales : Million ￥change

Sales volume

896

917

+21

Net sales

46,64945,265(1,384)

Domestically produced
crude oil:

Sales volume

239

238

(1)

Net sales

13,92514,011+85

Overseas subsidiary
crude oil:

Sales volume11(0)Net sales

8462

(22)

Sales volume

175

186+10Net sales

4,207

4,774

+567

112.38
81.07
45.70
83.38

115.47
80.74
52.74
76.77

+3.09
(0.33)+7.04(6.61)

Crude oil:

Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

USD/bblExchange rate

Yen / USD

Bitumen price

CAD/bblExchange rate

Yen /CAD

Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil. Royalty is excluded in thenet sales and price of Bitumen.
Sales volume and net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex (U.S.) Corp., an overseas consolidated
subsidiary.

13

Revised estimates for 1H FY2013 (vs. FY2012)
FY2012FY2013

1H (a)

1H (e)Net sales

104,596

106,210+1,614

Gross profit

25,33826,964

Exploration expenses

4,043

SG&A expenses[ Million ￥]change

Causes of increase(+) or decrease(-)
Gross profit
Domestic crude oil and natural gas -0.4 billion
LNG substitution expense-¥0.8 billion+1,626

Transportation fee of natural gas+2.3 billion

7,490+3,446

Overseas consolidated subsidiaries +¥0.7 billion

15,075

14,598▲477

Operating income

6,219

4,876

▲1,343Non-operating income(expenses)

1,668

199

▲1,469Ordinary income

7,887

5,076

▲2,812Extraordinary income(losses)▲421,988+2,030

Income taxes

1,277379▲898235

539+304

6,333

6,145▲188

Minority interests inincome
Net income

14

Exploration expenses
Domestic exploration-¥2.0 billion

Overseas exploration-¥1.3 billion

Non-operating income (expenses)
Equity in losses of affiliates -¥1.6 billion

Extraordinary income (losses)

Gain on assignment of working interest +2.4 billion