Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
<under Japanese GAAP>May 13, 2022
Note: The following report is a summary of the Japanese-language original.

Company name: Japan Petroleum Exploration Co., Ltd.
Listing:
Prime Market, Tokyo Stock Exchange
Securities code: 1662
URL:
https://www.japex.co.jp/
Representative: FUJITA Masahiro, Representative Director and President
Inquiries:
ASAI Masaru, General Manager, Corporate Communication Office(TEL) +81-3-6268-7110 (from overseas)
Scheduled date of ordinary general shareholders’ meeting:June 28, 2022
Scheduled date to commence dividend payments:
June 29, 2022
Scheduled date to file Securities Report:
June 28, 2022
Presentation of supplementary material on financial results:
Yes
Holding of financial results presentation meeting (for institutional investors and analysts): Yes
1.
(1)(Millions of yen with fractional amounts discarded, unless otherwise noted)

Consolidated financial results for the fiscal year ended March 31, 2022
(April 1, 2021 – March 31, 2022)
Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Fiscal year ended

Millions of yen

March 31, 2022

249,140

3.8

March 31, 2021

240,078(24.7)

Note: Comprehensive income:% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen%

19,809 372.5

43,674 336.7(30,988)–

4,192

10,001(2,725)–

FY2022/3: (18,992) million yen (– %)(70.6)(69.4)FY2021/3: (1,574) million yen (– %)Ratio ofRatio ofordinary profit to operating profit tototal assets
net sales

Basic earnings per
share

Diluted earnings
per share

Return on equity

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2022

(545.64)

–

(8.0)

8.0

8.0

March 31, 2021

(47.73)

–

(0.7)

1.6

1.7

Reference: Equity in earnings (losses) of affiliates:(2)

FY2022/3: 14,226 million yen

FY2021/3: 5,808 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, 2022

471,941

402,77078.7

6,679.85

As of March 31, 2021

624,786

434,492

64.0

7,011.36

Reference: Equity

As of March 31, 2022: 371,638 million yen

As of March 31, 2021: 400,171 million yen

-1-

(3)

Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing 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, 2022

(1,052)52,067(70,939)

144,513

March 31, 2021

43,263(6,453)(15,626)

157,963

2.

Cash dividends
Annual dividends

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

Secondquarter

Third
quarter

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

Fiscal year ended
March 31, 2021

–

25.00

–

25.00

50.00

2,857

–

0.7

Fiscal year ended
March 31, 2022

–

25.00

–

25.00

50.00

2,821

–

0.7

Fiscal year ending
March 31, 2023
(Forecast)

–

70.00

–

70.00

140.003.

Fiscalyear-end Annual

Totalannual cash
dividends

29.9

Consolidated financial forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 – March 31, 2023)(Percentages indicate year-on-year changes.)

Net sales

Fiscal year ending
March 31, 2023

Operating profit

Ordinary profit

Profit attributable Basic earnings per
to owners of parent
shareMillionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

244,344(1.9)

20,916

5.6

28,758 (34.2)

25,590–468.67

*
(1)

Notes
Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in the change in scope of consolidation): Yes
New inclusion: –Exclusion: two companies (Japan Canada Oil Sands Limited, JAPEX Montney Ltd.)(2)

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

Note: For details, please refer to “(5) Notes to consolidated financial statements (Changes in accounting policies)” of “3.
Consolidated financial statements and significant notes thereto” on page 18 of the attached material.

(3)

Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022
57,154,776 shares
As of March 31, 2021
57,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2022
1,518,982 shares
As of March 31, 2021
79,982 sharesc. Average number of shares during the period
Fiscal year ended March 31, 2022
56,794,126 sharesFiscal year ended March 31, 2021
57,106,407 shares-2-Reference: Summary of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2022
(April 1, 2021 – March 31, 2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Operating profit% Millions of yen

Ordinary profit% Millions of yen

ProfitFiscal year ended

Millions of yen

March 31, 2022

133,642(21.0)

13,407

7.5

39,01858.9(20,003)–

March 31, 2021

169,195(22.1)

12,47558.0

24,549(17.4)(26,664)–

Basic earnings per share

Diluted earnings per
share

Fiscal year ended

Yen

Yen

March 31, 2022

(352.20)–

March 31, 2021

(466.92)–(2)% Millions of yen%

Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2022

423,049

337,87279.9

6,072.94

As of March 31, 2021

467,262

362,065

77.5

6,343.70

Reference: Equity

As of March 31, 2022: 337,872 million yen

As of March 31, 2021: 362,065 million yen* Financial results reports are not required to be audited by certified public accountants or an audit
corporation.
* Proper use of financial forecasts, and other special matters
The forward-looking statements, including the financial forecasts shown in this document are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. As such,they do not constitute guarantees by the Company of future performance. Actual performance and other results
may differ materially from these forecasts due to various factors.
For the suppositions that form the assumptions for financial forecasts and cautions concerning the use thereof,
please refer to the section of “(4) Future outlook” of “1. Overview of operating results and others” on page 7 of
the attached material to the financial results report.

-3-

(Attached Material)
1. Overview of operating results and others(1) Overview of operating results for the fiscal year under review
In the fiscal year ended March 31, 2022, the Japanese economy remained under difficult circumstances due tothe impact of the new coronavirus infection (COVID-19), and although temporarily there were signs of arecovery in consumer spending and industrial production, the recovery trend was weak and uncertain.
The Japan Crude Cocktail (JCC) price was in an upward trend from the upper $60s per barrel at the beginningof the fiscal year against the backdrop of accelerated normalization of economic activities. Since February,
the price has been soaring due to concerns over crude oil and natural gas supply from Russia as the situationin Ukraine became more strained, and it was in the lower $90s per barrel by the end of the fiscal year.
In the currency exchange market, the yen was in the upper ¥100/US$ level at the beginning of the fiscal year,
but the yen depreciation trend strengthened going into the second half of the fiscal year, and was around themid ¥110 level at the end of the fiscal year. As a result, the JAPEX Group’s average oil sales price for the
fiscal year rose compared to the previous fiscal year.
On the other hand, the JAPEX Group continued to face a severe domestic market environment with respect tonatural gas sales. In addition to competition with prices of other oil products, that was due to continuingcompetition in the entire energy industry driven by the full retail liberalization of electricity and gas.
Under such circumstances, although the JAPEX Group has been promoting business based on “Long-Term
Vision 2030 and Mid-Term Business Plan 2018-2022” announced in May 2018, the business environment
surrounding the JAPEX Group has been undergoing significant changes, such as the further acceleration of
global decarbonization among others, and it has become necessary to respond to these changes quickly andflexibly. For this reason, during the fiscal year ended March 31, 2022, in May 2021, we formulated andannounced “JAPEX 2050,” which outlines the responsibilities and challenges we must take in order toachieve global net-zero CO2 emissions by 2050, and the direction for JAPEX’s future actions and businessdevelopment, and then in March 2022, we formulated and announced the “JAPEX Management Plan 20222030,” which is based on the basic policy of improving profitability and building a business foundation for2030 and beyond. Based on these plans, we will continue to promote our business diligently.
During the fiscal year, net sales was ¥249,140 million, an increase of ¥9,062 million (+3.8%) year on year.
Gross profit was ¥49,903 million, an increase of ¥13,368 million (+36.6%) year on year. Main factors behindthe year-on-year increase for net sales and increase for gross profit were improvements in sales of crude oil inJapan and diluted bitumen due to a rise in crude oil prices, despite a decrease in revenue due to the netpresentation of most of the crude oil purchase and sales following the application of the Accounting Standard
for Revenue Recognition.
Exploration expenses was ¥359 million, a decrease of ¥629 million (-63.6%) year on year. Selling, generaland administrative expenses was ¥29,734 million, a decrease of ¥1,618 million (-5.2%) year on year. As aresult, operating profit was ¥19,809 million, an increase of ¥15,616 million (+372.5%) year on year.
Ordinary profit was ¥43,674 million, an increase of ¥33,672 million (+336.7%) year on year, due mainly tothe turnaround from foreign exchange losses to foreign exchange gains and an increase in share of profit ofentities accounted for using equity method.
Loss before income taxes deteriorated by ¥11,178 million to ¥18,501 million year on year, mainly due to therecording of loss on sale of shares of subsidiaries resulting from the transfer of all the shares in Japan Canada
Oil Sands Limited (JACOS), a consolidated subsidiary that promotes the oil sands project in Canada, and loss
on transfer of interests resulting from the transfer of JAPEX Montney Ltd. (JML)’s interest in the shale gas
project of North Montney Area in British Columbia, Canada, despite the recording of gain on sale ofinvestment securities due to the sale of a portion of strategic shareholdings. Loss attributable to owners ofparent deteriorated by ¥28,262 million to ¥30,988 million year on year.

-4-Below is a breakdown of net sales.
(i) E&P BusinessNet sales from the E&P Business came to ¥73,422 million, a decrease of ¥24,059 million (-24.7%) year on
year, mainly due to a decrease in most of the crude oil purchase and sales due to the impact of the netpresentation, despite higher sales prices of crude oil and diluted bitumen.
(ii) Infrastructure/Utility BusinessNet sales from the Infrastructure/Utility Business came to ¥119,845 million, an increase of ¥18,543
million (+18.3%) year on year. This was mainly the result of higher sales prices of natural gas (Japan),liquefied natural gas (LNG), and electricity, despite reduced sales volume for natural gas (Japan).
(iii) Other Businesses
Net sales from other businesses, such as the contract services (drilling and geological surveys, etc.), sale ofoil products, including liquefied petroleum gas (LPG), fuel oil and the like, as well as other subcontracted
tasks, came to ¥55,872 million, an increase of ¥14,578 million (+35.3%) year on year.
Below is a summary of performance by segment (before elimination of intersegment transactions).
(1) Japan
Net sales in the Japan segment are mainly composed of crude oil and natural gas (including LNG), electricity,
contract services, oil products and the like. During the fiscal year under review, net sales came to ¥192,669
million, a decrease of ¥20,649 million (-9.7%) year on year, due to a change of presentation from a grossbasis to a net basis for transactions in which our role was agent, following the application of the AccountingStandard for Revenue Recognition, despite higher sales prices of crude oil, natural gas, electric power, etc.
Segment profit increased by ¥2,751 million (+12.5%) year on year to ¥24,739 million, due to improvements
in sales of crude oil and natural gas.
(2) North America
Net sales in the North America segment are mainly composed of crude oil and natural gas (including diluted
bitumen). In the fiscal year under review, net sales came to ¥33,814 million, an increase of ¥7,748 million(+29.7%) year on year due mainly to an improvement in sales prices of diluted bitumen in JACOS
Hangingstone leases. Segment profit increased ¥11,163 million year on year to ¥1,789 million (comparedwith a segment loss of ¥9,374 million in the previous fiscal year).
(3) Europe
In the Europe segment, exploration activities have been conducted in the UK North Sea block locatedoffshore Aberdeen. In the fiscal year under review, there was segment loss of ¥151 million (compared tosegment loss of ¥132 million in the previous fiscal year).
(4) Middle East
Net sales from the Middle East segment are composed of crude oil. In the fiscal year under review, net sales
came to ¥22,657 million, an increase of ¥5,907 million (+35.3%) year on year, due mainly to a higher sales
price. Segment profit came to ¥2,644 million, an increase of ¥2,479 million year on year.

-5-(2) Overview of financial position for the fiscal year under review
Total assets at the end of this fiscal year decreased by ¥152,845 million from the previous fiscal year-end to¥471,941 million.
Current assets increased by ¥5,885 million from the previous fiscal year-end. This was mainly due toincreases in notes and accounts receivable - trade and income taxes refund receivable included in other,
despite a decrease in cash and deposits. Non-current assets decreased by ¥158,730 million from the previous
fiscal year-end. This was mainly due to a reversal of deferred tax assets and a decrease in property, plant andequipment resulting from excluding JACOS from consolidation by the sale of all the shares of JACOS,
despite an increase in recovery accounts included in other under investments and other assets.
Liabilities decreased by ¥121,123 million from the previous fiscal year-end to ¥69,171 million.
Current liabilities decreased by ¥78,534 million from the previous fiscal year-end. This was due mainly to thedecrease in current portion of long-term borrowings because of fulfilling its guarantee obligation forconsolidated subsidiary JML’s borrowings. Non-current liabilities decreased by ¥42,588 million from theprevious fiscal year-end. This was mainly due to the decrease in long-term borrowings by fulfilling guarantee
obligation of JACOS’s borrowings.
Net assets decreased by ¥31,721 million from the previous fiscal year-end to ¥402,770 million.
The main factor was a decrease in retained earnings.

(3) Overview of cash flows for the fiscal year under review
As of March 31, 2022, cash and cash equivalents (hereinafter “net cash”) decreased by ¥13,449 million
compared to the end of the previous fiscal year to ¥144,513 million. Below is a summary of cash flows foreach activity.
(Cash flows from operating activities)
Net cash used in operating activities amounted to ¥1,052 million. This was mainly due to loss before income
taxes of ¥18,501 million, loss on sale of short-term and long-term investment securities of ¥53,579 million,
and gain on forgiveness of debt of ¥42,462 million.
(Cash flows from investing activities)
Net cash provided by investing activities amounted to ¥52,067 million. Net cash was mainly used in paymentsof recoverable accounts of ¥23,244 million, while net cash was mainly provided by proceeds from sale andredemption of investment securities of ¥53,062 million and of proceeds from sale of shares of subsidiaries
resulting in change in scope of consolidation of ¥29,382 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥70,939 million. Net cash was mainly used in repayments of longterm borrowings of ¥59,703 million.

-6-

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

2018

2019

2020

2021

2022

Equity ratio (%)

60.8

63.6

64.2

64.0

78.7

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

19.8

20.9

16.2

18.8

30.3

Interest-bearing debt to cash flow ratio (years)

2.8

4.3

1.8

2.6

Interest coverage ratio (times)

28.4

8.0

14.8

14.9

–
–

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 “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018) andrelevant Guidances have been applied from the beginning of the fiscal year ended March 31, 2019. Accordingly, with regard to“Reference: Trend of cash flow indicators” for the fiscal year ended March 31, 2018, the indicators represent those after thisaccounting standard, etc. was applied retrospectively.
*2. The above indicators are calculated based on consolidated financial figures.
*3. Total market capitalization is calculated based on the number of shares outstanding (excluding treasury shares).
*4. Cash flow here is cash flows from operating activities.
*5. Interest-bearing debt is all debt subject to interest payments within liabilities (excluding lease obligations) shown on the consolidatedbalance sheet.
*6. The interest-bearing debt to cash flow ratio and the interest coverage ratio for the fiscal year ended March 2022 are omitted since the
cash flows from operating activities were negative.

(4) Future outlook
The latest financial forecasts are based on a JCC price of $70 per barrel for the whole fiscal year, and an
exchange rate of ¥110/$ for the whole fiscal year. Actual non-consolidated results for the fiscal year underreview came to $73.28 per barrel and ¥111.20/$.
Net sales for the fiscal year ending March 31, 2023 is expected to decrease by ¥4,796 million (-1.9%) fromthe fiscal year under review to ¥244,344 million. This is because the factors for increased net sales, mainly
due to the expected increase in sales volume of overseas crude oil and higher sales prices of natural gas (inJapan), are outweighed by factors for decreased net sales, including the elimination of diluted bitumen sales
due to the transfer of all the shares of JACOS.
Operating profit is expected to increase by ¥1,107 million (+5.6%) to ¥20,916 million from the fiscal year
under review, mainly due to the rise in the sales prices of natural gas (in Japan) and an improvement in thebalance of sales revenue due to an expected decrease in the cost of LNG procurement.
Ordinary profit is expected to decrease by ¥14,915 million (-34.2%) from the fiscal year under review to¥28,758 million. This mainly reflects a decrease in share of profit of entities accounted for using equity
method, and the absence of foreign exchange gains recorded in the fiscal year under review.
Profit attributable to owners of parent is expected to increase by ¥56,578 million from the fiscal year underreview to ¥25,590 million, due to the absence of loss on sale of shares of subsidiaries and loss on transfer ofinterests, which were recorded in the fiscal year under review.
Through an investment stake in Sakhalin Oil and Gas Development Co., Ltd. (SODECO), we areparticipating in the Sakhalin-1 Project, a crude oil and natural gas development project off the coast of
Sakhalin Island, Russia. ExxonMobil of the US, the operator of the Sakhalin-1 Project, announced its
intention to withdraw from the project on March 1, 2022. Currently, crude oil and natural gas production andoperation of the project are continuing, although some of the business activities are restricted due to theeconomic sanctions against Russia. If these conditions are prolonged, the above forecasts may change.

(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years
While our basic policy has always been to maintain long-term stable dividends, the specific amount ofdividends has been determined based on comprehensive consideration of each fiscal year’s profit situation,
capital needs, and other factors. As announced in the “Notice Regarding the Change in Dividend Policy” onMarch 28, 2022, from the fiscal year ending March 31, 2023, we will make an effort to increase shareholders
return through paying dividends based on a target consolidated dividend payout ratio of 30% and aiming to-7-

sustainably increase corporate value through proactive investment using retained earnings and expansion of
the business base. In addition, we will strive to maintain the annual dividends of ¥50 per share even in theevent of a temporary downturn in business performance due to factors such as changes in the businessenvironment. (However, in the year when profit attributable to owners of parent fluctuates significantly due toextraordinary income or loss or other exceptional factors, the amount of dividend will be determined inconsideration of such fluctuations.)
Based on the above policy, we intend to pay a year-end dividend of ¥25 per share for the fiscal year underreview (ended March 31, 2022). Combined with the interim dividend, the annual dividend will be ¥50 per
share. For the next fiscal year ending March 31, 2023, we intend to pay the dividends of ¥140 per share(including an interim dividend of ¥70 per share).

-8-2. Basic rationale for selecting the accounting standard
The JAPEX Group currently has a policy to prepare the consolidated financial statements based on the generally
accepted accounting standards in Japan (Japanese GAAP), giving consideration to the possibility of comparing theconsolidated financial statements between terms.
Concerning the adoption of International Financial Reporting Standards (IFRS), the JAPEX Group intends to
respond appropriately giving due consideration to the situation in Japan and overseas.

-9-

3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Contract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Wells
Accumulated depreciation
Wells, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Allowance for overseas investment loss
Total investments and other assets
Total non-current assets
Total assets

10

As of March 31, 2022

162,368
39,519
–
3,030
4,297
140
8,001
3,715
(38)
221,034

147,241
47,158
405
3,030
2,143
29
12,503
14,458(51)
226,920

327,422(169,580)
157,841
119,329(94,363)
24,965
145,143(117,309)
27,834
12,38534,53736,783(27,603)
9,180
266,745

178,766(141,557)
37,20875,314(73,388)
1,925
146,470(122,216)
24,253
11,536
14,797
20,945(17,829)
3,116
92,837

6,129
6,129

5,802
5,802

105,070
48
7,940
2,384
15,850(44)(373)
130,877
403,752
624,786

108,910
49
3,709
2,319
31,734(45)(297)
146,380
245,021471,941(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of long-term borrowings
Contract liabilities
Provision for loss on disaster
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

11

As of March 31, 2022

21,546
62,175–913
19,142
103,776

11,479
260
258
1,841
11,402
25,24150,1807,919
3,545
21,262
3,609
86,517
190,294510
16,867
3,376
19,5393,636
43,92969,171

14,288–344,438(151)
358,575

14,288
2,607
310,592(3,886)323,60244,228(488)(3,810)1,667
41,59634,320434,492
624,786

48,346(1,862)
89
1,464
48,036
31,131
402,770
471,941

(2) Consolidated statement of income and Consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2021
Net sales
Cost of sales
Gross profit
Exploration expenses
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Late charges
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on forgiveness of debts
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on disaster
Loss on sale of shares of subsidiaries
Loss on transfer of interests
Loss on liquidation of subsidiaries
Other
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss
Profit (loss) attributable to non-controlling interests
Loss attributable to owners of parent*1, *2*3*4

12

Fiscal year ended
March 31, 2022

240,078
203,543
36,534989
31,352
4,192*1, *2

249,140
199,237
49,903359
29,73419,809

412
2,823

266
4,049

5,808

14,226

–
846
9,891

10,002
1,535
30,080

2,529
–
639
912
4,081
10,001

1,187
3,335
–
1,693
6,215
43,674

11
–
–
11

1,307
39,82642,462
83,59630
16,351948–––
517,335(7,322)
4,941(6,864)(1,923)(5,399)(2,673)(2,725)46–
1,416
94,37344,724
3,889
1,321
145,772(18,501)
2,855
6,797
9,652
(28,153)
2,835(30,988)*4

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2021
Loss
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

13

Fiscal year ended
March 31, 2022

(5,399)(28,153)

11,160125(7,853)910

4,121(1,718)
6,412
(202)

(517)

547

3,825
(1,574)

9,161(18,992)

1,375(24,548)(2,949)5,556

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

14,288Retained earnings–

Treasury shares

350,934(11)

Total shareholders’equity365,212

Changes during period
Dividends of surplus(2,857)(2,857)

Loss attributable toowners of parent(2,725)(2,725)

Change in ownershipinterest of parent due totransactions with noncontrolling interests–

Change in scope of
consolidation
Change in scope of equity
method

(0)

(0)

(911)

(911)

Purchase of treasury
shares

(140)

(140)

Disposal of treasury
shares–Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period––(6,495)(140)(6,636)

14,288–344,438(151)

358,575

Non-controllinginterests

Total net assets

37,450440,157

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale
securities
33,061

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

181

3,494

Remeasurements ofdefinedbenefit plans
756

Total
accumulated
othercomprehensive income
37,494

Changes during period
Dividends of surplus(2,857)

Loss attributable toowners of parent(2,725)

Change in ownershipinterest of parent due totransactions with noncontrolling interests–

Change in scope of
consolidation(0)

Change in scope of equity
method(911)

Purchase of treasury
shares(140)

Disposal of treasury
shares–Net changes in items otherthan shareholders’ equity

11,167(670)(7,305)

910

4,101

(3,130)971

Total changes during period

11,167(670)(7,305)

910

4,101

(3,130)(5,665)

Balance at end of period

44,228(488)(3,810)1,667

41,59634,320434,492

14

Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

14,288Retained earnings–

Treasury shares

344,438(151)

Total shareholders’equity358,575

Changes during period
Dividends of surplus(2,857)(2,857)

Loss attributable toowners of parent(30,988)(30,988)

Change in ownershipinterest of parent due totransactions with noncontrolling interests

2,607

2,607

Change in scope of
consolidation–

Change in scope of equity
method–Purchase of treasury
shares(3,737)(3,737)

Disposal of treasury
shares22

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

–

2,607

(33,846)(3,734)(34,973)

14,288

2,607

310,592(3,886)323,602

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale
securities
44,228Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income(488)(3,810)1,667

41,596

Non-controllinginterests

Total net assets

34,320434,492

Changes during period
Dividends of surplus(2,857)

Loss attributable toowners of parent(30,988)

Change in ownershipinterest of parent due totransactions with noncontrolling interests

2,607

Change in scope of
consolidation–

Change in scope of equity
method–Purchase of treasury
shares(3,737)

Disposal of treasury
shares2

Net changes in items otherthan shareholders’ equity

4,117(1,374)

3,900

(202)

6,440

(3,189)3,251

Total changes during period

4,117(1,374)

3,900

(202)

6,440

(3,189)(31,721)

Balance at end of period

48,346(1,862)

89

1,464

48,036

31,131

402,77015

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Loss before income taxes
Depreciation
Impairment losses
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
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Increase (decrease) in allowance for overseas
investment loss
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of short-term and long-term
investment securities
Loss (gain) on liquidation of subsidiaries
Share of loss (profit) of entities accounted for using
equity method
Loss on transfer of interests
Recovery of recoverable accounts
Gain on forgiveness of debt
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
Subtotal
Income taxes refund (paid)
Net cash provided by (used in) operating activities

16

Fiscal year ended
March 31, 2022

(7,322)
22,59916,351
30(18,501)
17,721
–
45

12

–

6
(1,413)
16

15
64
(168)

(342)

(75)

(3,235)2,529(7)(4,316)
1,187(9,911)–53,579–3,899(5,808)(14,226)–
15,196–(12,188)
4,003
10,211
2,219
3,490
46,348(3,085)43,26344,724
17,780(42,462)(12,410)(2,737)(9,422)(2,360)(16,697)
5,726(6,778)(1,052)

(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sale and redemption of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Proceeds from sale of shares of subsidiaries resulting inchange in scope of consolidation
Payments of recoverable accounts
Loan advances
Proceeds from collection of loans receivable
Interest and dividends received
Proceeds from dividends of residual property
Proceeds from capital reduction of investments
Proceeds from transfer of interests
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Interest paid
Repayments of lease liabilities
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*

17

Fiscal year ended
March 31, 2022

(28,281)
46,446–(15,153)
21
(416)
(114)
(6,806)(41,247)
44,92030(16,278)
2,248
(290)
(128)
(11,827)–

53,062–

29,382(14,971)(26)
22
10,358
–
3,068
–
(598)
(6,453)(23,244)(6,721)
24
19,860
6
75
2,701
(507)
52,06775,079(77,813)(6,470)(140)(2,858)(180)(2,908)(335)

20,900(20,900)(59,703)(3,737)(2,857)(2,085)
(674)
(255)

–

(1,626)(15,626)(70,939)(1,479)6,475

19,703
138,259
157,963(13,449)
157,963
144,513*(5) Notes to consolidated financial statements(Notes on premise of going concern)
No item to report.

(Changes in accounting policies)
Application of Accounting Standard for Revenue Recognition, Etc.
As the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
revised ASBJ regulations were applied from the beginning of the fiscal year under review, we have recognized therevenue at the time the control of promised goods or services is transferred to the client, at the amount expected tobe received upon the exchange of said goods or services. As a result, we have changed the method of recognizing
revenue to a net basis for certain purchase and sale transactions of crude oil, natural gas, etc., where we previously
recognized revenue on a gross basis, after determining its role (as principal or agent) in the provision of goods orservices to customers.
The application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for
Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy
had been applied to periods prior to the beginning of the fiscal year under review was added to or deducted fromthe opening balance of retained earnings of the fiscal year under review, and thus the new accounting policy wasapplied from such opening balance; provided, however, that the new accounting policy was not retrospectively
applied to contracts for which nearly all the revenue amounts had been recognized according to the previous
treatment in periods prior to the beginning of the fiscal year under review, by applying the method provided for inparagraph 86 of the Accounting Standard for Revenue Recognition.
Consequently, for the fiscal year under review, net sales decreased ¥61,966 million, cost of sales decreased¥61,906 million, and selling, general and administrative expenses decreased ¥59 million compared with those
before the adoption of the Accounting Standard for Revenue Recognition. There was no effect on operating profit,
ordinary profit, and loss before income taxes. In addition, there was also no effect on the opening balance ofretained earnings of the current fiscal year.
Due to the application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations, “notes and accounts receivable - trade” under current assets of the consolidated balance sheet as of theend of the previous fiscal year has been included in “notes and accounts receivable - trade” and “contract assets”
under current assets from the consolidated balance sheet as of the end of the fiscal year under review, and “other”
under current liabilities of the consolidated balance sheet as of the end of the previous fiscal year has been included
in “contract liabilities” and “other” under current liabilities from the consolidated balance sheet as of the end of the
fiscal year under review. In accordance with the transitional treatment provided for in paragraph 89-2 of the
Accounting Standard for Revenue Recognition, figures for the previous fiscal year have not been restated inaccordance with the new approach to presentation.
Application of Accounting Standard for Fair Value Measurement, Etc.
We have applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019)and relevant ASBJ regulations from the beginning of the fiscal year under review. And we have applied new
accounting policies stipulated in the Accounting Standard for Fair Value Measurement and relevant ASBJ
regulations prospectively in accordance with the transitional treatment provided for in paragraph 19 of the
Accounting Standard for Fair Value Measurement and paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There was no effect of this application on the consolidated
financial statements.
(Additional information)
Accounting estimates in connection with the spread of novel coronavirus disease (COVID-19)
At the end of the fiscal year under review, the specific dissipation of the COVID-19 pandemic still remains
uncertain, and the impact on economic activities in Japan and overseas has continued. Although the timing
COVID-19 dissipates is still unknown and difficult to be predicted, we expect that the situation will gradually
recover as time goes by.
In the Garraf Oil Field in the southern part of the Republic of Iraq, the additional development was delayed due torestrictions on transfer and other factors caused by the impact of COVID-19, and the increase in production
volume to a scale of 230,000 barrels a day, which was expected at the end of 2020, had its timeline forachievement pushed backward. Also, production commencement from UK North Sea’s Seagull field, which wasscheduled for the end of this year, has been delayed to early 2023 as a result of revising the development plan,
which considers the impact of COVID-19 and others.
18

Although the current economic sanctions against Russia and the turmoil in the energy market have kept crude oiland natural gas prices high globally, we believe that various structural changes brought about by the prolonged
effects of the COVID-19 pandemic and progress on global decarbonization could be a risk factor for future demand
for fossil fuels. In light of the changes in the business environment surrounding our company and the trend ofrising global carbon prices, our projection for the medium- to long-term oil price is set at $50 per barrel.
Should assumptions change under such circumstances, we have options involving recoverability of deferred tax
assets with respect to accounting estimates of high uncertainty. The estimate change resulting from the abovementioned hypothetical fluctuations may impact taxable income for the JAPEX Group including its consolidated
subsidiaries, and the amount of deferred tax assets recorded may increase or decrease.
Changes to fiscal year of consolidated subsidiaries
The consolidated financial statements of Japex Garraf Ltd., a consolidated subsidiary of JAPEX whose closing dateis December 31, were previously prepared based on the last day of the consolidated subsidiary’s fiscal year in theevent that there was a difference of less than three months between the last day of the consolidated subsidiary’s
fiscal year and the consolidated closing date. However, said subsidiary has changed the method of performing
provisional closing on the consolidated closing date effective from the current consolidated fiscal year in order tooffer more appropriate understanding of business information and disclosure of consolidated financial statements.

19

(Consolidated balance sheet)Contingent liabilities(Millions of yen)

As of March 31, 2021

As of March 31, 2022

(1) Liabilities for guarantees on borrowings to financial institutions
Employees (borrowings for housing funds)
38
Kumamoto Mirai LNG Co., Ltd.
38
Greenland Petroleum Exploration Co.,
19
Ltd.

Kumamoto Mirai LNG Co., Ltd.
Employees (borrowings for housing funds)
Greenland Petroleum Exploration Co.,
Ltd.

31
22

(2) Guarantees on liabilities related to production facilities
Kangean Energy Indonesia Ltd.
736

Kangean Energy Indonesia Ltd.

116

Total

191

Total

832

20

(Consolidated statement of income)*1. Below is a breakdown of major expense items and amount of selling, general and administrative expenses:(Millions of yen)
Fiscal year ended
March 31, 2022
11,248
560
5,130
4,162

Fiscal year ended
March 31, 2021
Personnel expenses(of the above, retirement benefit expenses)
Freight costs
Depreciation

11,225
564
7,093
4,333

*2. Total amount of research and development expenses included in general and administrative expenses(Millions of yen)

Fiscal year ended March 31, 2021

Fiscal year ended March 31, 2022
190

179

*3. Impairment losses
In the fiscal year ended March 31, 2021, the JAPEX Group recognized impairment losses on the asset groups asshown below.
Use

Business assets related to
Yufutsu oil and gas field

Business assets related to
Iwafune-oki oil and gas field

Impairment losses

Location

Tomakomai City,
Hokkaido and others

Type

Amount(Millions of yen)

Buildings and structures

1,598

Machinery, equipment andvehicles

3,466

Land

3,780

Other

2,326

Total
Machinery, equipment andTainai City, Niigata and vehicles
othersOther

11,172

Total

4,645

3,821
824

Other
533
The JAPEX Group deems a production facility, etc. as the minimum unit that generates largely independent cash flows forbusiness assets, and groups assets at the level of individual property for idle assets.
As for business assets related to the Yufutsu oil and gas field, the carrying value of business assets for production operation was
written off to the recoverable amount, and the write-off was recorded as impairment losses under extraordinary losses, based onreview of future cash flows with a downward revision in the crude oil price forecast.
In addition, the recoverable amount of this asset group is mainly measured at value in use, which is recorded at the memorandum
value as the future cash flows are expected to be negative.
As for business assets related to the Iwafune-oki oil and gas field, the carrying value of business assets for production operation
was written off to the recoverable amount, and the write-off was recorded as impairment losses under extraordinary losses, basedon review of future cash flows with an increase in asset retirement obligations due to a change in the estimate for expenses related
20

to the future withdrawal of the Iwafune-oki offshore platform and well abandonment.
The recoverable amount for this asset group is measured from its value in use, then calculated by discounting future cash flows at
8%.

*4. Losses on disasterFiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
The JAPEX Group recorded losses due to damage caused by the earthquake that occurred off the coast of Fukushima
Prefecture in February 2021. Losses on disaster of ¥948 million includes provision for loss on disaster of ¥913
million.
Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
The JAPEX Group recorded losses due to damage caused by the earthquake that occurred off the coast of Fukushima
Prefecture in March 2022. Losses on disaster of ¥1,416 million includes provision for loss on disaster of ¥970
million.

21

(Consolidated statement of changes in equity)
Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
1. Class and total number of issued shares and class and number of treasury shares
Number of shares atthe beginning of the
fiscal year (shares)

Increase (shares)

Decrease (shares)

Number of shares atthe end of the fiscal
year (shares)

Common shares

57,154,776––

57,154,776

Total

57,154,776––

57,154,776

Common shares

2,303

77,679–79,982

Total

2,303

77,679–79,982

Issued shares

Treasury shares

Notes: 1. The increase of 77,679 shares in treasury shares of common stock comprises an increase of 79 shares due to purchases ofshares less than one unit and an increase of 77,600 shares due to an acquisition of the Company’s shares by the Board
Benefit Trust (BBT).
2. The number of treasury shares of common stock at the end of the fiscal year ended March 31, 2021 includes 77,600 shares
held by the Board Benefit Trust (BBT).

2. Dividends(1) Cash dividends paid
Resolution

Class of shares

Total dividends Dividends per share(Millions of yen)
(Yen)

Record date

Effective dateOrdinary General Meetingof Shareholders held on
Common shares
1,428
25March 31, 2020
June 29, 2020
June 26, 2020
Meeting of the Board of
Directors held on
Common shares
1,428
25 September 30, 2020 December 14, 2020
November 10, 2020
Note: The total amount of the dividend at the meeting of the Board of Directors held on November 10, 2020 includes a dividend of ¥1
million for shares held by the Board Benefit Trust (BBT).

(2) Dividends payments whose record date is in the fiscal year under review but whose effective date is in the following
fiscal year
Resolution

Class of shares

Total dividends(Millions ofyen)

Resource ofdividends

Dividends per
share
(Yen)

Record date

Effective dateOrdinary General
Meeting ofCommonRetained
1,428
25 March 31, 2021
June 28, 2021
Shareholders held on sharesearnings
June 25, 2021
Note: The total amount of the dividend at the Ordinary General Meeting of Shareholders held on June 25, 2021 includes a dividend of¥1 million for shares held by the Board Benefit Trust (BBT).

22

Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
1. Class and total number of issued shares and class and number of treasury shares
Number of shares atthe beginning of the
fiscal year (shares)

Increase (shares)

Decrease (shares)

Number of shares atthe end of the fiscal
year (shares)

Common shares

57,154,776––

57,154,776

Total

57,154,776––

57,154,776

Common shares

79,982

1,440,600

1,600

1,518,982

Total

79,982

1,440,600

1,600

1,518,982

Issued shares

Treasury shares

Notes: 1. The increase of 1,440,600 shares in treasury shares of common stock comprises an increase due to the purchase of treasury
shares by resolution of the Board of Directors.
2. The decrease of 1,600 shares in treasury shares of common stock comprises a decrease due to the provision of shares throughthe Board Benefit Trust (BBT).
3. The number of treasury shares of common stock includes shares held by the Board Benefit Trust (BBT) (77,600 shares at the
beginning of the fiscal year ended March 31, 2022 and 76,000 shares at the end of the fiscal year ended March 31, 2022).
4. The Board of Directors resolved at its meeting held on November 9, 2021 to cancel treasury shares in accordance with theprovisions of Article 178 of the Companies Act. However, the cancellation procedures were not completed for the following
treasury shares by the end of the fiscal year ended March 31, 2022.
Carrying value¥3,737 million
Class of shares
Common shares
Number of shares
1,440,600 shares

2. Dividends(1) Cash dividends paid
Resolution

Class of shares

Total dividends Dividends per share(Millions of yen)
(Yen)

Record date

Effective dateOrdinary General Meetingof Shareholders held on
Common shares
1,428
25March 31, 2021
June 28, 2021
June 25, 2021
Meeting of the Board of
Directors held on
Common shares
1,428
25 September 30, 2021 December 13, 2021
November 9, 2021
Notes: 1: The total amount of the dividend at the Ordinary General Meeting of Shareholders held on June 25, 2021 includes a dividendof ¥1 million for shares held by the Board Benefit Trust (BBT).
2. The total amount of the dividend at the meeting of the Board of Directors held on November 9, 2021 includes a dividend of¥1 million for shares held by the Board Benefit Trust (BBT).

(2) Dividends payments whose record date is in the fiscal year under review but whose effective date is in the following
fiscal year
Resolution

Class of shares

Total dividends(Millions ofyen)

Resource ofdividends

Dividends per
share
(Yen)

Record date

Effective dateOrdinary General
Meeting ofCommonRetained
1,392
25 March 31, 2022
June 29, 2022
Shareholders held on sharesearnings
June 28, 2022
Note: The total amount of the dividend at the Ordinary General Meeting of Shareholders held on June 28, 2022 includes a dividend of¥1 million for shares held by the Board Benefit Trust (BBT).

23

(Consolidated statement of cash flows)* Reconciliation of cash and cash equivalents at end of period and the amount recorded in the consolidated balance sheet
Fiscal year ended
March 31, 2021
162,368

Cash and deposits
Time deposits with maturity over three months(Millions of yen)
Fiscal year ended
March 31, 2022
147,241(7,405)(5,727)

3,000

3,000

157,963

144,513

Short-term investments, etc. having maturities
within three months from the acquisition date
(Securities) Money management fund andothersCash and cash equivalents

24

(Segment information, etc.)[Segment information]
1. Summary of reportable segments
The JAPEX Group’s reportable segments are segments for which separated financial information is available andwhich are periodically examined by the Board of Directors to determine allocation of managerial resources andassess business performance, among components of the JAPEX Group.
In addition to business activities in Japan, the JAPEX Group has developed business activities overseas through a
project company established at each business location.
Therefore, the JAPEX Group consists of segments by business location and considers “Japan,” “North America,”“Europe” and “Middle East” as reportable segments.
“Japan” consists of business activities such as exploration, development, and production for crude oil and naturalgas, and sales of crude oil as the E&P Business in Japan; sales of natural gas and LNG, contract services fortransportation of natural gas, and generation and sales of electric power, etc. as the Infrastructure/Utility Business;and manufacturing, purchase, sale and transportation of oil products, contract services for well drilling work, etc.
as the Other Businesses.
“North America” consists of business activities such as exploration, development, production, purchase, sale, etc.
for crude oil, natural gas and bitumen (extra-heavy oil extracted from oil sands) as E&P Business in North
America.
“Europe” consists of business activities such as development of crude oil and natural gas as E&P Business in
Europe.
“Middle East” consists of business activities such as development, production, sale, etc. of crude oil and natural
gas as E&P Business in the Middle East.
2. Method for calculating net sales, profit (loss), assets and other items by reportable segment
The method for accounting for reported operating segments is basically the same as the description in “Material
matters that serve as the basis for preparing consolidated financial statements” of the latest securities reportsubmitted on June 28, 2021 (Japanese only). Profit of reportable segments is the figure based on operating profit.
Intersegment revenue and transfers are based on prevailing market prices.
As described in “Changes in accounting policies,” we have applied the Accounting Standard for Revenue
Recognition and relevant revised ASBJ regulations from the beginning of the fiscal year ended March 31, 2022,
and have changed accounting treatment for revenue recognition. Accordingly, we have changed the method of
calculating profit or loss of operating segments.

25

3. Information regarding net sales, profit (loss), assets and other items by reportable segment
Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
Reportable segment
Others(Note) 1

Total(Millions of yen)Amounton theAdjustment consolidated(Note) 2
financialstatements(Note) 3

Japan

North
America

EuropeMiddleEast

213,308

26,065–703

240,078–

240,078–

240,078

11––

16,045

16,056–

16,056(16,056)–

213,319

26,065–

16,749256,134–

256,134(16,056)

240,078

Segment profit(loss)

21,988(9,374)

(132)

165

12,645–

12,645(8,453)

4,192

Segment assets

79,397

180,230

7,968

13,211

280,808–

280,808

343,978

624,786

12,595

9,590

0

192

22,378–22,378221

22,599

(319)

–

–

(10)

(329)

6,138

5,808

–

5,808

679

–

–

286

966

17,121

18,087–18,087

4,961

7,456

2,104

–

14,522–

14,522

149

14,672Total

Net sales
Net sales tooutside clientsIntersegment sales
or transfers
Total

Other items
Depreciation
Share of profit(loss) of entities
accounted forusing equity
methodInvestments inentities accounted
for using equity
methodIncrease inproperty, plant andequipment andintangible assets

26

Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)Amounton theAdjustment consolidated(Note) 2
financialstatements(Note) 3

Reportable segment
Japan

North
America

Net sales
Net sales tooutside clientsIntersegment sales
or transfers

192,669

Total

Others(Note) 1

Total

EuropeMiddleEast

Total

33,814–22,657249,140–

249,140–

249,140

–

–

–

–

–

–

–

–

–

192,669

33,814–22,657249,140–

249,140–

249,140

Segment profit(loss)

24,739

1,789

(151)

2,644

29,022–

29,022(9,213)19,809Segment assets

75,607

4,631

13,88518,308112,433–

112,433

359,508

471,941

10,203

6,901

–

366

17,471–

17,471

250

17,721Other items
Depreciation

Share of profit(loss) of entities
(47)
–
–
(13)
(61)
14,287
14,226–
14,226accounted forusing equity
methodInvestments inentities accounted
679
–
–
286
966
10,603
11,569–11,569for using equity
methodIncrease inproperty, plant and
6,109
3,000
4,532
–
13,643–
13,643
243
13,886equipment andintangible assets
Notes: 1. The “Others” category represents operating segments that are not included in reportable segments, and includes
Russia, etc.
2. Major components of adjustment are as follows:(1) Segment profit (loss)(Millions of yen)
Fiscal year ended
Fiscal year ended
March 31, 2021
March 31, 2022
Elimination of intersegment transactions
14
4
Corporate expenses *(8,467)(9,218)Total(8,453)(9,213)
Corporate expenses are mainly general and administrative expenses and experimentation and researchexpenses, all of which are not attributable to the reportable segments.
(2) Segment assets(Millions of yen)
As of March 31, 2021
As of March 31, 2022*

Elimination of intersegment transactions

(586)

(12)

Corporate assets *1

3,208

2,239

341,355

357,280

Other assets *2

Total
343,978359,508*1. Corporate assets are mainly assets for management by the headquarters that do not belong to the reportablesegments.
*2. Assets allocated to segments are recoverable accounts included in property, plant and equipment, intangible
assets, and investments and other assets, whereas other assets are assets other than property, plant andequipment, intangible assets, and recoverable accounts that are not allocated to segments.
3. Segment profit (loss) was adjusted to operating profit in the consolidated statement of income.
4. Due to the change in the accounting treatment for revenue recognition, and compared with the figures obtained by
the previous treatment, net sales of “Japan” for the fiscal year ended March 31, 2022 decreased by ¥82,149
million. In addition, there is no impact on the segment profit.

27

[Related information]
Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
1. Information by product or service(Millions of yen)

E&P BusinessNet sales to outsideclients

Crude oil

Dilutedbitumen72,916

21,695

Infrastructure/Utility Business

Natural gas Natural gas(overseas)(Japan)2,870

51,291Other businesses

Net sales to outsideclients

Contract
services

Oil products/
merchandise

7,633

31,931

LNG

Electricity

Others30,087

4,331

15,591

Total

Others1,729

240,078

2. Information by geographical area
(1) Net salesJapan
152,325(Millions of yen)CanadaRussia25,745

Iraq

44,918Others

16,768Total
320240,078

Note Net sales are classified into countries or regions based on the place where products, etc. were delivered and thelocation where services were rendered.

(2) Property, plant and equipment
Japan
81,422

CanadaUK

175,541(Millions of yen)
Total

Others
7,968

1,812

266,745

3. Information by major client
This information is not presented as there are no clients that account for 10% or more of net sales on the
consolidated statement of income among net sales to external clients.
Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
1. Information by product or service(Millions of yen)

E&P BusinessNet sales to outsideclients

Crude oil

Dilutedbitumen

41,056

31,121

Infrastructure/Utility Business

Natural gas Natural gas(overseas)(Japan)1,244

Other businesses

Net sales to outsideclients

Contract
services

Oil products/
merchandise

6,395

47,354

Others- 28 -

2,122

LNG

58,024

22,596

Total
249,140

Electricity

Others34,3204,903

2. Information by geographical area
(1) Net sales
Japan(Millions of yen)Canada192,592

Russia32,835

Iraq
57

Others

22,671

Total
984

249,140

Note Net sales are classified into countries or regions based on the place where products, etc. were delivered and thelocation where services were rendered.

(2) Property, plant and equipment
Japan

Canada76,753

UK–(Millions of yen)
Total

Others
13,885

2,198

92,837

3. Information by major client
This information is not presented as there are no clients that account for 10% or more of net sales on the
consolidated statement of income among net sales to external clients.
[Information on impairment losses on non-current assets by reportable segment]
Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
Japan
16,351

North America–

EuropeMiddle East–

Others––Corporate andelimination–

Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
No item to report.
[Information on amortization and unamortized balance of goodwill by reportable segment]
Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
No item to report.
Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
No item to report.
[Information on gain on bargain purchase by reportable segment]
Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
No item to report.
Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
No item to report.

- 29 -(Millions of yen)
Total
16,351

(Per share information)

Net assets per share

Fiscal year ended
March 31, 2021
(April 1, 2020 –March 31, 2021)¥7,011.36

Fiscal year ended
March 31, 2022
(April 1, 2021 –March 31, 2022)¥6,679.85

Basic loss per share¥47.73¥545.64

Notes 1. Diluted earnings per share is not presented, since basic loss per share was recorded and there is no dilutive share.
2. The Company’s shares held by the Board Benefit Trust (BBT) are included in the treasury shares that are deductedfrom the total number of issues shares at the fiscal year end when calculating net assets per share (77,600 shares in
the fiscal year ended March 31, 2021, and 76,000 shares in the fiscal year ended March 31, 2022).
Moreover, they are also included in the treasury shares that are deducted when calculating the average number ofshares during the period in order to calculate basic loss per share (46,021 shares in the fiscal year ended March 31,
2021, and 76,486 shares in the fiscal year ended March 31, 2022).
3. The basis for calculation of basic loss per share is as follows:
Fiscal year ended
March 31, 2021
(April 1, 2020 –March 31, 2021)
2,725

Fiscal year ended
March 31, 2022
(April 1, 2021 –March 31, 2022)
30,988––Loss attributable to owners of parent related to commonshares (Millions of yen)

2,725

30,988Average number of shares during the period (Thousands ofshares)57,106

56,794

Loss attributable to owners of parent (Millions of yen)Amounts not attributable to common shareholders (Millionsof yen)(Significant subsequent events)
No item to report.

- 30 -

4. Others
Status of production and sales
1. Production
Fiscal year ended
March 31, 2021
(April 1, 2020 –March 31, 2021)
Crude oil (kl)E&P Business Natural gas (thousand m3)
Bitumen (kl)Fiscal year ended
March 31, 2022
(April 1, 2021 –March 31, 2022)

849,859806,390(541,855)(525,392)

1,032,521

674,588(473,685)(132,025)

889,315656,377(889,315)(656,377)

3,341
Infrastructure/ LNG (t)Utility
Electricity
2,543,189
Business(thousand kWh)
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.

2,136
2,655,529

2. SalesFiscal year ended
March 31, 2021
(April 1, 2020 –March 31, 2021)
Net sales
Sales volume(Millions of yen)

E&P Business

Crude oil (kl)

2,313,521

72,916

669,926

41,056

Diluted bitumen (kl)

1,319,808

21,695

959,777

31,121Natural gas (overseas)(thousand m3)

470,5102,870

130,214

1,244

Subtotal
Natural gas (Japan)(thousand m3)
Infrastructure/Utility
Business

LNG (t)Electricity (thousand kWh)

97,48273,422

1,183,102

51,291

1,061,244

58,024284,216

15,591

295,536

22,596

3,016,755

30,0873,023,294

34,320

OthersOtherbusinesses

Fiscal year ended
March 31, 2022
(April 1, 2021 –March 31, 2022)
Net sales
Sales volume(Millions of yen)

4,331

4,903

Subtotal

101,301

119,845

Contract services

7,633

6,395

Oil products/merchandise

31,93147,354

Others

1,729

2,122

Subtotal

41,29455,872

Total

240,078

249,140

Notes: 1. “Crude oil” includes crude oil that the JAPEX Group produced in oil fields and the crude oil purchased from othercompanies.
2. Diluted bitumen is bitumen diluted by ultra-light crude oil for pipeline transportation.

- 31 -

3. “Natural gas (Japan)” of the Infrastructure/Utility Business refers to gas supplied in Japan via pipeline andcomprises the total of natural gas produced in Japan and regasified LNG. Natural gas (Japan) is classified under the
Infrastructure/Utility Business, since both natural gas produced in Japan and LNG vaporized gas are sold together
by the Company’s supply network, which consists of the natural gas fields in Japan and the LNG terminals thatvaporize gas linked by a pipeline network.
4. “Others” of the Infrastructure/Utility Business includes commissioned transportation of natural gas and contracted
vaporization of LNG used for power plant fuel, etc.
5. Under the Other businesses, “Oil products/merchandise” includes liquefied petroleum gas (LPG), fuel oil, gas oiland kerosene, and “Others” includes other subcontracted tasks.
6. Monetary amounts in the table do not include consumption taxes.

- 32 -