Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
<under Japanese GAAP>May 13, 2021
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:
https://www.japex.co.jp/
Representative: Masahiro Fujita, Representative Director and President
Inquiries:
Masaru Asai, General Manager, Corporate Communication Office
TEL: +81-3-6268-7110 (from overseas)
Scheduled date of ordinary general shareholders’ meeting:June 25, 2021
Scheduled date to commence dividend payments:
June 28, 2021
Scheduled date to file Securities Report:
June 25, 2021
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, 2021
(April 1, 2020 – March 31, 2021)
Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Fiscal year ended

Millions of yen

March 31, 2021

240,078(24.7)

4,192

March 31, 2020

318,82219.0

14,283 517.4

Note: Comprehensive income:% Millions of yen

FY2021/3: (1,574) million yen (– %)Profit attributable toowners of parent

Ordinary profit% Millions of yen(70.6)

10,001% Millions of yen%(69.4)(2,725)–32,635 160.6

26,81581.5

FY2020/3: (6,254) 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, 2021

(47.73)

–

(0.7)

1.6

1.7

March 31, 2020

469.18

–

6.5

5.1

4.5

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

FY2021/3: 5,808 million yen

FY2020/3: 11,960 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, 2021

624,786

434,492

64.0

7,011.36

As of March 31, 2020

627,132

440,15764.2

7,046.18

Reference: Equity

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

As of March 31, 2020: 402,706 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, 2021

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

157,963

March 31, 2020

69,895(18,701)(13,743)

138,259

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, 2020

–

25.00

–

25.00

50.00

2,857

10.7

0.7

Fiscal year ended
March 31, 2021

–

25.00

–

25.00

50.00

2,857

–

0.7

Fiscal year ending
March 31, 2022
(Forecast)

–

25.00

–

25.00

50.00

3.

Fiscalyear-end Annual

Totalannual cash
dividends–

Consolidated financial forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 – March 31, 2022)(Percentages indicate year-on-year changes.)

Net sales

Ordinary profit%

Millionsof yen%Millionsof yen%Millionsof yen%Yen

211,153 (12.0)

8,215

95.9

15,74057.4(28,317)–(496.14)

Millionsof yenFiscal year ending
March 31, 2022

Profit attributable Basic earnings per
to owners of parent
share

Operating profit

*
(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 restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: Yes
d. Restatement: None

Note: For details, please refer to “(5) Notes to consolidated financial statements (Changes in accounting estimates)” of “3.
Consolidated financial statements and significant notes thereto” on page 17 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, 2021
57,154,776 shares
As of March 31, 2020
57,154,776 sharesb. Number of treasury shares at the end of the period
As of March 31, 2021
79,982 shares
As of March 31, 2020
2,303 sharesc. Average number of shares during the period
Fiscal year ended March 31, 2021
57,106,407 sharesFiscal year ended March 31, 2020
57,152,522 shares-2-Reference: Summary of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2021
(April 1, 2020 – March 31, 2021)(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, 2021

169,195(22.1)

12,47558.0

24,549(17.4)(26,664)–

March 31, 2020

217,079

20.6

7,893

(16.4)

29,71838.0

25,413

6.9

Basic earnings per share

Diluted earnings per
share

Fiscal year ended

Yen

Yen

March 31, 2021

(466.92)–

March 31, 2020

444.66–(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, 2021

467,262

362,065

77.5

6,343.70

As of March 31, 2020

442,637

380,44285.9

6,656.63

Reference: Equity

As of March 31, 2021: 362,065 million yen

As of March 31, 2020: 380,442 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, 2021, the Japanese economy was under extremely difficult circumstances
due to the impact of the novel coronavirus disease (COVID-19) from the end of the previous fiscal year.
From the middle of the fiscal year and toward the latter half, while personal consumption and industrial
production have shown signs of picking up, the recovery was weak, and the economic outlook continues to be
uncertain.
The Japan Crude Cocktail (JCC) price plummeted from the mid-$40s per barrel at the beginning of the fiscal
year to the mid-$20s by June, resulting from the failure of oil producing countries to agree with coordinatedreduction in the beginning of March 2020 and the stagnation in economic activity due to the impact of
COVID-19. Subsequently, economic activity in countries around the world moderately recovered, and against
a backdrop of a coordinated reduction among the oil producing countries and other factors, crude oil pricetook to an upward trajectory, to reach the lower $60s at the end of the fiscal year.
In the currency exchange market, the yen was hovering around the upper ¥100/US$ level at the beginning of
the fiscal year. Then, while violently fluctuating, it strengthened to reach the lower ¥100 level in January. The
yen later weakened again to reach the upper ¥100 level as of the end of the fiscal year. As a result, the JAPEXGroup’s average oil sales price for the fiscal year declined 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 intensifying
competition amid efforts reinforced by other companies in JAPEX’s market domain to promote natural gas
infrastructure projects such as LNG receiving terminals and related pipelines, expansion of supplies outside
traditional supply areas by the entire energy industry driven by the full retail liberalization of electricity andgas, and other factors.
Under such circumstances, the JAPEX Group has been promoting business based on “Long-Term Vision
2030 and Mid-Term Business Plan 2018-2022” announced in May 2018.
In particular, during the fiscal year, the JAPEX Group has made extensive progress through such efforts as
growing the power generation business as a pillar of the Infrastructure/Utility Business, as exemplified by thecommencement of full-scale commercial operations at the Fukushima Natural Gas Power Plant of Fukushima
Gas Power Co., Ltd, in which JAPEX invests around 33% share.
During the fiscal year, net sales was ¥240,078 million, a decrease of ¥78,744 million (-24.7%) year on year.
Gross profit was ¥36,534 million, a decrease of ¥10,507 million (-22.3%) year on year. Major factors behindthe year-on-year decreases for net sales and gross profit were decreases in the sales volume and sales price of
crude oil from the Garraf Oil Field in the southern part of the Republic of Iraq, decreases in the sales volume
and sales price of crude oil and natural gas in Japan, a decline in diluted bitumen sales, and other negative
factors overwhelming the positive factors such as the sales of electricity due to the commencement ofcommercial operations at the Fukushima Natural Gas Power Plant.
Exploration expenses was ¥989 million, an increase of ¥95 million (+10.7%) year on year. Selling, generaland administrative expenses was ¥31,352 million, a decrease of ¥512 million (-1.6%) year on year. As aresult, operating profit was ¥4,192 million, a decrease of ¥10,091 million (-70.6%) year on year.
Ordinary profit was ¥10,001 million, a decrease of ¥22,633 million (-69.4%) year on year, due mainly to adecrease in share of profit of entities accounted for using equity method, the turnaround from foreignexchange gains to foreign exchange losses, and a decrease in dividend income.
Profit before income taxes deteriorated by ¥39,226 million year on year to a loss before income taxes of¥7,322 million (profit before income taxes of ¥31,903 million in the previous fiscal year) due to the recordingof impairment losses within some domestic business assets under extraordinary losses. Profit attributable toowners of parent deteriorated by ¥29,541 million year on year to a loss attributable to owners of parent of¥2,725 million (profit attributable to owners of parent of ¥26,815 million in the previous fiscal year).

-4-Below is a breakdown of net sales.
(i) E&P BusinessNet sales from the E&P Business came to ¥97,482 million, a decrease of ¥77,960 million (-44.4%) year on
year. This was mainly the result of decreased sales volumes and sales prices of crude oil and diluted
bitumen.
(ii) Infrastructure/Utility BusinessNet sales from the Infrastructure/Utility Business came to ¥101,301 million, an increase of ¥12,612
million (+14.2%) year on year. This was the result of the addition of the electric power business with thecommencement of commercial operations of the No. 2 Unit at the Fukushima Natural Gas Power Plant inAugust 2020, following the No. 1 Unit’s commencement of operations in April 2020, despite decreased
sales volumes and sales prices of natural gas in Japan and decreased sales prices of liquefied natural gas(LNG).
(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 ¥41,294 million, a decrease of ¥13,396 million (-24.5%) 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. In the fiscal year under review, net sales came to ¥213,319
million, a decrease of ¥55,054 million (-20.5%) year on year. This was mainly the result of decreased sales
volumes of crude oil and natural gas, and decreased sales prices of crude oil, natural gas and liquefied naturalgas (LNG), despite the inclusion of sales of electricity with the commencement of commercial operations of
the Fukushima Natural Gas Power Plant. Segment profit increased by ¥3,153 million (+16.7%) year on yearto ¥21,988 million, due to the addition of the electric power business and other factors.
(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 ¥26,065 million, a decrease of ¥22,637 million (46.5%) year on year due mainly to a decrease in sales prices of diluted bitumen. With respect to segment
profit (loss), there was a segment loss of ¥9,374 million (compared to segment profit of ¥3,422 million in theprevious fiscal year) due to decline in prices of oil and deterioration of profitability in diluted bitumen sales
resulting from the wider light-heavy differential (*1).
(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 ¥132 million (compared tosegment loss of ¥164 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 ¥16,749 million, a decrease of ¥27,141 million (-61.8%) year on year, due mainly to decline in sales
volume. Segment profit came to ¥165 million, a decrease of ¥447 million (-73.1%) year on year due to adecrease in net sales and other factors.
(*1) The differential between Western Canadian Select (WCS), which is the reference price for heavy crude
oil from the oil sands, and the WTI, which is the reference price of light crude oil-5-(2) Overview of financial position for the fiscal year under review
Total assets at the end of this fiscal year decreased by ¥2,345 million from the previous fiscal year-end to¥624,786 million.
Current assets increased by ¥7,980 million from the previous fiscal year-end. This was mainly due to anincrease in notes and accounts receivable - trade, despite a decrease in raw materials and supplies. Noncurrent assets decreased by ¥10,326 million from the previous fiscal year-end. This was mainly due to adecrease in property, plant and equipment resulting from the impairment losses and progress in the
depreciation, despite an increase in investment securities resulting from the rise in market values.
Liabilities increased by ¥3,319 million from the previous fiscal year-end to ¥190,294 million.
Current liabilities increased by ¥68,038 million from the previous fiscal year-end. This was mainly due to thereclassification of current portion of long-term borrowings from long-term borrowings in non-current
liabilities and an increase in notes and accounts payable - trade. Non-current liabilities decreased by ¥64,718
million from the previous fiscal year-end. This was mainly due to a decrease resulting from the abovementioned reclassification of borrowings with repayments due in one year or less to current liabilities, despite
an increase in asset retirement obligations.
Net assets decreased by ¥5,665 million from the previous fiscal year-end to ¥434,492 million.
The main factors were decreases in retained earnings and foreign currency translation adjustment, despite anincrease in valuation difference on available-for-sale securities.

(3) Overview of cash flows for the fiscal year under review
As of March 31, 2021, cash and cash equivalents (hereinafter “net cash”) increased by ¥19,703 million
compared to the end of the previous fiscal year to ¥157,963 million. Below is a summary of cash flows foreach activity.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥43,263 million. The main factors were recovery ofrecoverable accounts of ¥15,196 million and ¥22,599 million in depreciation.
(Cash flows from investing activities)
Net cash used in investing activities amounted to ¥6,453 million. Net cash was mainly used in payments ofrecoverable accounts of ¥14,971 million and purchase of property, plant and equipment of ¥15,153 million,
while net cash was mainly provided by interest and dividends received of ¥10,358 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥15,626 million. Net cash was mainly used in repayments of longterm borrowings of ¥6,470 million, interest paid of ¥2,908 million and dividends paid of ¥2,858 million.

-6-

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

2017

2018

2019

2020

2021

Equity ratio (%)

58.6

60.8

63.6

64.2

64.0

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

19.5

19.8

20.9

16.2

18.8

Interest-bearing debt to cash flow ratio (years)

3.4

2.8

4.3

1.8

2.6

Interest coverage ratio (times)

48.7

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.

(4) Future outlook
The latest financial forecasts are based on a JCC price of $60 per barrel for the whole fiscal year, and an
exchange rate of ¥105/$ for the whole fiscal year. Actual non-consolidated results for the fiscal year underreview came to $42.91 per barrel and ¥105.86/$.
Net sales for the fiscal year ending March 31, 2022 is expected to decrease by ¥28,924 million (-12.0%) fromthe fiscal year under review to ¥211,153 million. This is mainly due to a reevaluation of the criteria forrecording net sales for some transactions resulting from the application of the “Accounting Standard for
Revenue Recognition” from the beginning of fiscal 2021.
Operating profit is expected to increase by ¥4,023 million from the fiscal year under review to reach ¥8,215
million, due mainly to the rise in the sales prices of crude oil and natural gas and the projected improvement
in diluted bitumen sales due to a rise in its sales price.
Ordinary profit is expected to increase by ¥5,739 million from the fiscal year under review to reach ¥15,740
million. This mainly reflects the projection of an increase in share of profit of entities accounted for using
equity method.
Loss attributable to owners of parent is expected to deteriorate by ¥25,591 million from the fiscal year underreview to a loss attributable to owners of parent of ¥28,317 million, due to expected losses resulting from thetransfer of interests owned by JAPEX Montney Ltd., a consolidated subsidiary of JAPEX.

-7-

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.

-8-

3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2020

As of March 31, 2021

160,077
27,510
4,000
5,223
167
11,1414,966(31)
213,054

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

335,240(161,558)
173,682
117,964(90,980)
26,984
146,113(111,983)
34,12916,67031,46637,965(26,861)
11,103
294,038

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

6,823
6,823

6,129
6,129

88,922
43
8,003
971
16,034(44)(715)
113,216
414,078
627,132

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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

9

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

12,237
6,833–
16,66735,73821,546
62,175913
19,142
103,776

118,774
9,878
3,528
15,432
3,623
151,236
186,975

50,1807,919
3,545
21,262
3,609
86,517
190,294

14,288350,934(11)
365,212

14,288344,438(151)
358,575

33,061

44,228

181
3,494
756
37,49437,450440,157
627,132(488)(3,810)1,667
41,59634,320434,492
624,786

Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of long-term borrowings
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
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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

10(2) Consolidated statement of income and Consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2020
Net sales
Cost of sales
Gross profit
Exploration expenses
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sale of securities
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of securities
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on disaster
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent*1, *2*3

11

Fiscal year ended
March 31, 2021

318,822271,780
47,042893
31,864
14,283*1, *2240,078
203,543
36,534989
31,352
4,192

1,096
5,618
240

412
2,823
–

11,960

5,808

2,425
2,313
23,654

–
846
9,891

4,641
1
–
660
5,303
32,635

2,529
–
639
912
4,081
10,001

1
1

11
11

193
524
–
14
733
31,903
4,318
469
4,788
27,114299
26,815*3*4

30
16,351948
517,335(7,322)
4,941(6,864)(1,923)(5,399)(2,673)(2,725)

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2020
Profit (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 ofparentComprehensive income attributable to noncontrolling interests

12

Fiscal year ended
March 31, 2021

27,114(5,399)(33,236)
184
(34)
(357)

11,160125(7,853)
910

74

(517)

(33,369)(6,254)

3,825(1,574)(6,437)

1,375

183

(2,949)(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

14,288Retained earnings

157

Treasury shares

331,306(10)

Total shareholders’equity345,741

Changes during period
Dividends of surplus(3,143)(3,143)

Profit (loss) attributable toowners of parent

26,815

26,815

Change in ownershipinterest of parent due totransactions with noncontrolling interests(4,192)(4,192)

Change in scope of
consolidation

(7)

(7)

Change in scope of equity
methodPurchase of treasury
shares(0)

Transfer from retained
earnings to capital surplus

(0)

4,035

(4,035)

–

–

(157)

19,628(0)

19,47014,288–350,934(11)

365,212

Non-controllinginterests

Total net assets

33,668450,156

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

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale
securities
66,296

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensi
ve income

(2)

3,338

1,114

70,747

Changes during period
Dividends of surplus(3,143)

Profit (loss) attributable toowners of parent

26,815

Change in ownershipinterest of parent due totransactions with noncontrolling interests(4,192)

Change in scope of
consolidation(7)

Change in scope of equity
methodPurchase of treasury
shares(0)

Transfer from retained
earnings to capital surplus–

Net changes in items otherthan shareholders’ equity(33,235)

184

156

(357)

(33,252)

3,782(29,470)

Total changes during period(33,235)

184

156

(357)

(33,252)

3,782(9,999)Balance at end of period

33,061

181

3,494

756

37,49437,450440,157

13

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)

Profit (loss) attributable toowners of parent(2,725)(2,725)

(0)

(0)

(911)

(911)

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Change in scope of
consolidation
Change in scope of equity
methodPurchase of treasury
shares

(140)

(140)

Transfer from retained
earnings to capital surplus
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)

Profit (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)

Transfer from retained
earnings to capital surplus
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

41,59634,320434,49214

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2020
Cash flows from operating activities
Profit (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
Share of loss (profit) of entities accounted for using
equity method
Recovery of recoverable accounts
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

15

Fiscal year ended
March 31, 2021

31,90325,190524
136(7,322)
22,59916,351
30

–

12

(4)

6

347
75

(1,413)
16

(342)

(342)

(6,714)
4,641(2,986)(3,235)
2,529
(7)

(239)

–

(11,960)(5,808)41,040(6,695)(4,029)3,831(668)(2,138)71,914(2,018)69,895

15,196(12,188)
4,003
10,211
2,219
3,490
46,348(3,085)43,263

(Millions of yen)
Fiscal year ended
March 31, 2020
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
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
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
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 obligations
Proceeds from share issuance to non-controllingshareholders
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

Fiscal year ended
March 31, 2021

(77,870)
70,869(7,566)
11
(111)
(78)
(373)

(28,281)
46,446(15,153)
21
(416)
(114)
(6,806)1,024–(30,226)(26)
4,484
18,8205
2,138
196(18,701)(14,971)(26)
22
10,358
–
3,068
(598)
(6,453)49,918(48,615)(6,307)(0)(3,141)(516)(4,729)(357)

75,079(77,813)(6,470)(140)(2,858)(180)(2,908)
(335)

4

–

(13,743)(15,626)

175(1,479)37,625
100,633
138,259

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

(Changes in accounting estimates)
Changes in asset retirement obligations estimates
Regarding the asset retirement obligations recorded as expenses pertaining to the future withdrawal of the offshore
platform and well abandonment in the Iwafune-oki oil and gas field (hereinafter “expenses pertaining to thewithdrawal, etc.”), the estimate of the expenses pertaining to the withdrawal, etc. required at the end of the project
was changed as a result of obtaining new information regarding the expenses pertaining to the withdrawal, etc. The
amount increase of ¥5,375 million due to the estimate change was added to the asset retirement obligations balancefrom before the change.
Furthermore, due to said changes in the estimate, operating profit and ordinary profit for the fiscal year underreview both decreased by ¥873 million, and loss before income taxes increased by ¥4,441 million.
(Additional information)
Financial covenants
A part of loans from financial institutions to JAPEX Montney Ltd. (hereinafter “JML”), a consolidated subsidiaryof the Company, amounting to ¥28,048 million includes certain financial covenants clauses. JML has beenbreaching the financial covenants clauses as it has been in a state of insolvency. Regarding the resulting
acceleration, because the moratorium on the exercise of rights by the financial institutions ends on March 31, 2021,
the Company’s Board of Directors passed a resolution on March 10, 2021, regarding the Company’s payment ofguarantee obligations for a portion of JML’s borrowings from the financial institutions.
Furthermore, the said payment of guarantee obligations was carried out on April 1, 2021.
Accounting estimates in connection with the spread of novel coronavirus disease (COVID-19)
While the dissipation of the COVID-19 pandemic remains uncertain as of the end of the fiscal year under review,prolonged stagnation is seen in economic activities in Japan and overseas. Although the timing COVID-19
dissipates is still unknown and difficult to be predicted, the Company expects that the situation will gradually
recover as time goes by.
The Garraf Oil Field in the southern part of the Republic of Iraq, which had temporarily suspended its development
and production operation due to the impact of COVID-19, resumed its production operation from July last year.
However, due to restrictions on transfer and other factors, the additional development was delayed and therefore,
the increase in production volume to a scale of 230,000 barrels a day, which was expected at the end of last year,
will be delayed to later years. Also, scheduling and other matters concerning the development in the UK North
Sea’s Seagull field, for which we are aiming for production commencement by the end of this year, are subject tochange.
Concerning the impact on sales volumes of crude oil, natural gas, diluted bitumen, electricity, etc. during the fiscal
year ended March 31, 2021, the sales volume of the crude oil from the above-mentioned Garraf project decreased
by 609,000 kl (-56.7%) year on year to 465,000 kl. In the oil sand development project in Canada, the sales volumeof diluted bitumen decreased by 319,000 kl (-19.5%) year on year to 1,319,000 kl due to the curbing of production
in response to the deteriorated business environment. In Japan, the sales volume of natural gas declined by 85
million cubic meters (-6.7%) year on year to 1,183 million cubic meters, due to the sluggish economic activity.
It is the view of the Company that the prolonging of the effects of the COVID-19 pandemic and the global
movement toward decarbonization could give rise to the possibility of irreversible structural changes in various
areas such as energy demand and environmental concerns, which could suppress the demand for fossil fuels forsome considerable time. Moreover, there have been calls to focus on a “green recovery” while undertaking the
global economic recovery from the COVID-19 pandemic, which could further accelerate the growing tide of
decarbonization. In light of the changes in the business environment surrounding the Company and the trend ofrising global carbon prices, the Company lowered its projections for the medium- to long-term oil price from theexisting price of $60 per barrel to $50 per barrel.
Due to this change, impairment losses were recorded within some business assets as a result of conducting areevaluation of major assets of the Group within the fiscal year under review.
In addition, there are some accounting estimates of high uncertainty should assumptions change, namely therecoverability of deferred tax assets. The estimate change resulting from the above-mentioned hypotheticalfluctuations may impact taxable income for the Company and its consolidated subsidiaries, and the amount ofdeferred tax assets recorded may increase or decrease.

17

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

As of March 31, 2020

As of March 31, 2021

(1) Liabilities for guarantees on borrowings to financial institutions
INPEX North Caspian Sea, Ltd.
8,012
Employees (borrowings for housing funds)
Employees (borrowings for housing funds)
61
Kumamoto Mirai LNG Co., Ltd.
Greenland Petroleum Exploration Co.,
Kumamoto Mirai LNG Co., Ltd.
44
Ltd.
Greenland Petroleum Exploration Co.,
18
Ltd.
(2) Guarantees on liabilities related to production facilities
Kangean Energy Indonesia Ltd.
1,364
Total

9,501

38
38
19

Kangean Energy Indonesia Ltd.

736

Total

832

(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, 2021
11,225
564
7,093
4,333

Fiscal year ended
March 31, 2020
Personnel expenses(of the above, retirement benefit expenses)
Freight costs
Depreciation

11,152
506
6,595
4,446

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

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021
360

190

*3. Impairment losses
The JAPEX Group recognized impairment losses on the asset groups as shown below.
Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
Use

Business assets related to
Amarume Oil Field

Impairment losses

Location

Shonai Town,
Yamagata Prefecture

Type

Amount(Millions of yen)

Buildings and structures

148

Machinery, equipment andvehicles

305

Land

67

Other

2

Total
524
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 Amarume Oil field, the carrying value of business assets for production operation is written off to
the recoverable amount, and the write-off is recorded as impairment losses under extraordinary losses, based on estimation of
future cash flows with the drop in the crude oil price.
In addition, the recoverable amount is measured at value in use which is recorded at the memorandum value as the future cash
flows are expected to be negative.

18

Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
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 is
written off to the recoverable amount, and the write-off is 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 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 is
written off to the recoverable amount, and the write-off is recorded as impairment losses under extraordinary losses, with anincrease in asset retirement obligations due to a change in the estimate for expenses related 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 disaster of ¥948 million includes provision for loss on disaster of ¥913 million.

19

(Consolidated statement of changes in equity)
Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
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

2,207

96

–

2,303

Total

2,207

96

–

2,303

Record date

Effective date

March 31, 2019

June 28, 2019

Issued shares

Treasury shares

Note The increase of 96 treasury shares of common shares is due to purchases of shares less than one unit.

2. Dividends(1) Cash dividends paid
Resolution

Class of shares

Ordinary General Meetingof Shareholders held on
June 27, 2019
Meeting of the Board of
Directors held on
November 8, 2019

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

Common shares

1,714

30

Common shares

1,428

25

September 30, 2019 December 16, 2019(2) Dividends payments whose record date is in the fiscal year under review but whose effective date is in the following
fiscal year
Resolution
Ordinary General
Meeting of
Shareholders held on
June 26, 2020

Class of shares
CommonsharesTotal dividends(Millions of
yen)
1,428

Resource ofDividends
Retainedearnings

20

Dividends per
share
(Yen)
25

Record date

Effective date

March 31, 2020

June 29, 2020

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).

(Consolidated statement of cash flows)* Reconciliation of cash and cash equivalents at end of period and the amount recorded in the consolidated balance sheet(Millions of yen)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Cash and deposits

160,077

162,368

Time deposits with maturity over three months(25,817)(7,405)

4,000

3,000

138,259

157,963

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

21

(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, 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 exploration and development for 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 26, 2020 (Japanese only). Profit of reportable segments is the figure based on operating profit.
Intersegment revenue and transfers are based on prevailing market prices.
3. Information regarding net sales, profit (loss), assets and other items by reportable segment
Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
Reportable segment
Others(Note) 1

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

Japan

North
America

EuropeMiddleEast

Net sales
Net sales tooutside customers
Intersegment sales
or transfers

268,365

48,703–

1,754

318,822–

318,822–

318,8228––

42,13642,144–

42,144(42,144)–

Total

268,373

48,703–43,890360,967–

360,967(42,144)

318,822

Segment profit(loss)

18,834

3,422

(164)

612

22,705(1)

22,703(8,419)14,283

Segment assets

97,780191,611

6,018

13,628309,038–

309,038

318,093

627,132

12,407

12,1380293

24,839–24,839351

25,190

152

–

–

(8)

144

11,816

11,960–11,960

347

–

–

286

634

20,494

21,128–21,128

3,787

4,907

1,697

–

10,392–

10,392

255

10,648

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

22

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

Net sales
Net sales tooutside customers
Intersegment sales
or transfers

213,308

26,065–703

240,078–

240,078–

240,078

11––

16,045

16,056–

16,056(16,056)–

Total

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

22,599Total

Other items
Depreciation

Share of profit(loss) of entities
(319)
–
–
(10)
(329)
6,138
5,808
–
5,808
accounted forusing equity
methodInvestments inentities accounted
679
–
–
286
966
17,121
18,087–18,087for using equity
methodIncrease inproperty, plant and
4,961
7,456
2,104
–
14,522–
14,522
149
14,672equipment 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, 2020
March 31, 2021
Elimination of intersegment transactions
16
14
Corporate expenses *(8,436)(8,467)

Total(8,419)(8,453)
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, 2020
As of March 31, 2021*

Elimination of intersegment transactions

(600)

(586)

Corporate assets *1

3,204

3,208

315,489

341,355

Other assets *2

Total
318,093343,978*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.

23

[Related information]
Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
1. Information by product or service(Millions of yen)

E&P BusinessNet sales to outside
customers

Crude Oil

Dilutedbitumen

128,152

45,025

Infrastructure/Utility Business

Natural gas Natural gas(overseas)(Japan)2,265

64,965

Other businesses

Net sales to outside
customers

Contract
Services

Oil products/
merchandise

15,00337,502

LNG

Electricity

Others974

3,353

19,395

Total

Others2,184

318,822

2. Information by geographical area
(1) Net sales
Japan(Millions of yen)Canada159,815

Russia48,062

Iraq

66,341Others43,960

Total
642

318,822

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
99,523

Canada(Millions of yen)
Total

Others186,499

8,015

294,038

3. Information by major customer
Name of customer or individual(Millions of yen)
Related segment

Net sales

BP Singapore Pte. Ltd

34,707Japan

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 outside
customers

Crude Oil

Dilutedbitumen72,916

21,695

Infrastructure/Utility Business

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

Other businesses

Net sales to outside
customers

Contract
Services

Oil products/
merchandise

7,633

31,931Others- 24 -

1,729

LNG

51,291

15,591

Total
240,078

Electricity

Others30,0874,331

2. Information by geographical area
(1) Net salesJapan
152,325

Canada25,745(Millions of yen)
RussiaIraq

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

Canada175,541(Millions of yen)
Total

Others

9,781

266,745

3. Information by major customer
This information is not presented as there are no customers that account for 10% or more of net sales on
the consolidated statement of income among net sales to external customers.

- 25 -

[Information on impairment losses on non-current assets by reportable segment]
Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
Japan

North America
524

Europe–Middle East––

Corporate andelimination––

Corporate andelimination–

Others–Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
Japan
16,351

North America–

EuropeMiddle East–

[Information on amortization and unamortized balance of goodwill by reportable segment]
Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
No item to report.
Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
No item to report.
[Information on gain on bargain purchase by reportable segment]
Fiscal year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
No item to report.
Fiscal year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
No item to report.

- 26 -

Total
524(Millions of yen)

Others–(Millions of yen)

Total
16,351

(Per share information)

Net assets per share
Basic earnings (loss) per share

Fiscal year ended
March 31, 2020
(April 1, 2019 –March 31, 2020)¥7,046.18

Fiscal year ended
March 31, 2021
(April 1, 2020 –March 31, 2021)¥7,011.36¥469.18¥(47.73)

Notes 1. Diluted earnings per share is not presented, since 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 of the period when calculating net assets per share(77,600 shares in the fiscal year ended March 31, 2021).
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 earnings (loss) per share (46,021 shares in the fiscal year ended
March 31,2021).
3. The basis for calculation of basic earnings (loss) per share is as follows:
Fiscal year ended
March 31, 2020
(April 1, 2019 –March 31, 2020)
26,815

Fiscal year ended
March 31, 2021
(April 1, 2020 –March 31, 2021)(2,725)––

Profit (loss) attributable to owners of parent related tocommon shares (Millions of yen)

26,815(2,725)

Average number of shares during the period (Thousands ofshares)57,152

57,106

Profit (loss) attributable to owners of parent (Millions of yen)Amounts not attributable to common shareholders (Millionsof yen)(Significant subsequent events)
Resolution concerning conclusion of sales agreement for interests in the shale gas field of North Montney
Area, British Columbia, Canada
The Company resolved, at the meeting of the Board of Directors held on May 13, 2021, to conclude a sales
agreement for the Company’s consolidated subsidiary JML to transfer all 10% interests in the shale gas field of
North Montney Area, British Columbia, Canada owned by JML, along with related assets, to Petronas Energy
Canada Ltd. (headquarters: Alberta, Canada), the operator of the field.
In line with the conclusion of the sales agreement, the Company will record an extraordinary loss ofapproximately C$493 million (Canadian dollars) due to loss on transfer of interests in the fiscal year ending
March 31, 2022.

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4. Others
Status of production and sales
1. Production
Fiscal year ended
March 31, 2020
(April 1, 2019 –March 31, 2020)
Crude oil (kl)E&P Business Natural gas (thousand m3)
Bitumen (kl)
LNG (t)Infrastructure/
UtilityBusiness

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

1,215,690

849,859(913,298)(541,855)

1,083,862

1,032,521(434,194)(473,685)

1,130,169

889,315(1,130,169)(889,315)

4,405

3,341

Electricity
3,049
2,543,189(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.
4. “Electricity,” in addition to the solar power plant (mega solar) on the grounds of the Hokkaido District Office,includes the electricity generated by Fukushima Natural Gas Power Plant, which started commercial operations
from the fiscal year ended March 31, 2021.

2. SalesFiscal year ended
March 31, 2020
(April 1, 2019 –March 31, 2020)
Net sales
Sales volume(Millions of yen)

E&P Business

Crude oil (kl)

2,924,245

128,152

2,313,521

72,916

Diluted bitumen (kl)

1,639,689

45,025

1,319,808

21,695Natural gas (overseas)(thousand m3)

431,147

2,265

470,5102,870

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

175,443

97,482

1,268,448

64,965

1,183,102

51,291

LNG (t)273,312

19,395284,216

15,591

Electricity (thousand kWh)

110,167974

3,016,755

30,087

OthersOtherbusinesses

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

3,353

4,331

Subtotal

88,688101,301

Contract Services

15,003

7,633

Oil products/merchandise

37,502

31,931Others

2,184

1,729

Subtotal

54,69041,294

Total

318,822240,078- 28 -

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

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