Financial Results for the six months ended September 30, 2016
Support Material

INPEX CORPORATION
November 11, 2016

Cautionary Statement
This material includes forward‐looking information that reflects the plan andexpectations of the Company. Such forward‐looking information is based on thecurrent assumptions and judgments of the Company in light of the information
currently available to it, and involves known and unknown risk, uncertainties, andother factors. Such risks, uncertainties and other factors may cause the Company’sperformance, achievements or financial position to be materially different from anyfuture results, performance, achievements or financial position expressed or impliedby such forward‐looking information. Such risks, uncertainties and other factors
include, without limitation:
 Price volatility and change in demand in crude oil and natural gas
 Foreign exchange rate volatility
 Change in costs and other expenses pertaining to exploration, development andproduction
The Company undertakes no obligation to publicly update or revise the disclosureof information in this material (including forward‐looking information) after thedate of this material.
1

Subsidiaries and Affiliates
64 consolidated subsidiaries
Major subsidiaries

Country/region

Ownership

StageAccounting term

Japan Oil Development Co., Ltd.

UAE

100%

Production

March (provisionalsettlement of account)

JODCO Onshore Limited

UAE

51 %

Production

December

INPEX Natuna, Ltd.

Indonesia

100%

Production

March

INPEX Sahul, Ltd.

Timor Sea Joint Petroleum
Development Area

100%

Production

December

INPEX Ichthys Pty Ltd

Australia

100%

Development

March (provisional
settlement of account)

INPEX Southwest Caspian Sea, Ltd. Azerbaijan

51%

Production

March (provisional
settlement of account)

INPEX North Caspian Sea, Ltd.

Kazakhstan

45%

Production

March (provisionalsettlement of account)

INPEX Oil & Gas Australia Pty Ltd

Australia

100%

Development

December

INPEX Gas British Columbia Ltd.

Canada45.09%

Production/Evaluation

December

Ownership

StageAccounting term

20 equity method affiliates
Major affiliates

2Country/region

MI Berau B.V.

Indonesia

44%

Production

DecemberAngola Block 14 B.V.

Angola49.99%

Production

December

INPEX Offshore North Campos,Ltd.

Brazil

37.5%

Production

DecemberIchthys LNG Pty Ltd

Australia

62.245%Development

March (provisionalsettlement of account)

Highlights of the Consolidated Financial Results
for the six months ended September 30, 2016
Apr.‐Sep. ‘15

Net sales(Billions of yen)

Apr.‐Sep. ‘16

Change%Change

567.0

389.6(177.3)(31.3%)

Crude oil sales

396.8

275.8

(121.0)(30.5%)Natural gas sales (including LPG)

163.3

108.0

(55.2)(33.9%)

6.8

5.7(1.0)(15.2%)

Operating income (Billions of yen)

246.7

138.0

(108.7)(44.1%)

Ordinary income (Billions of yen)

258.8

132.1

(126.6)(48.9%)Net income attributable toowners of parent (Billions of yen)

45.4

15.7(29.7)(65.4%)Net income per share (Yen)

31.1510.77(20.38)(65.4%)

OthersAverage number of INPEX shares issued and outstanding during the six months ended September 30, 2016: 1,460,357,186

Average crude oil price (Brent) ($/bbl)

57.31

47.01

(10.30)(18.0%)

Average exchange rate (¥/$)

121.88105.2616.62 yen

13.6% yenappreciation

appreciation

3

Crude Oil Sales
Apr.‐Sep. ‘15

Change%Change

Net sales (Billions of yen)

396.8

275.8

(121.0)(30.5%)

Sales volume (thousand bbl)

57,80559,970

2,164

3.7%

Average unit price of overseas
production ($/bbl)

56.52

43.08

(13.44)(23.8%)

Average unit price of domestic
production (¥/kl)

47,04332,003(15,041)(32.0%)

Average exchange rate (¥/$)

121.36106.6514.71 yenappreciation

12.1% yenappreciation%Change

Sales volume by region(thousand bbl)

Apr.‐Sep. ‘15

Apr.‐Sep. ‘16

ChangeJapan290(46.2 thousand kl)

415(66.0 thousand kl)

125(+19.9 thousand kl)

43.0%

Asia & Oceania

6,837

6,548(289)(4.2%)

Eurasia (Europe & NIS)

6,028

6,260

232

3.8%

Middle East & Africa

43,96345,734

1,771

4.0%

Americas6871,012

325

47.4%

57,80559,970

2,164

3.7%

Total
4

Apr.‐Sep. ‘16

Natural Gas Sales (excluding LPG)
Apr.‐Sep. ‘15

ChangeApr.‐Sep. ‘16%Change

Net sales (Billions of yen)

157.7

104.3

(53.3)(33.8%)

Sales volume (million cf)

160,634

165,837

5,204

3.2%

Average unit price of overseas
production ($/thousand cf)

7.23

4.83

(2.40)(33.2%)

Average unit price of domestic
sales (¥/m3)

54.72

43.88

(10.84)(19.8%)

Average exchange rate (¥/$)

121.23105.8715.36 yenappreciation

12.7% yenappreciation

Change%ChangeSales volume by region (million cf)

Apr.‐Sep. ‘15

Apr.‐Sep. ‘16

Japan

28,725(770 million m3*)

29,523(791 million m3*)

798(+21 million m3*)

2.8%

Asia & Oceania

114,556

118,646

4,090

3.6%

Eurasia (Europe & NIS)‐‐‐‐

Middle East & Africa‐‐‐‐

Americas17,353

17,668315

1.8%160,634

165,837

5,204

3.2%

Total
(FYI) LPG Sales
Apr.‐Sep. ‘15

5

Net sales (Billions of yen)

Apr.‐Sep. ‘16
5.5

Change3.6(1.9)%Change(34.7%)*1m3=41.8605MJ

Analysis of Net Sales Decrease(Billions of Yen)
700

Crude OilNatural Gas (including LPG)

+14.9
+4.6

19.6

600

Crude OilNatural Gas (including LPG)

(37.7)(10.6)

500(147.5)

400
300

567.0

Crude OilNatural Gas (including LPG)

(48.4)(1.0)(98.1)(49.3)

200

389.6

1000
Net sales
Apr.‐Sep .‘15
6

Increase inSales volume

Decrease in
Exchange rate
OthersUnit price (Appreciation of yen)

Net sales
Apr.‐Sep .‘16

Statement of Income(Billions of Yen)

Apr.‐Sep. ’15

Apr.‐Sep. ’16

Change%Change

Net sales

567.0

389.6(177.3)(31.3%)

Cost of sales

273.5

210.1

(63.4)

Gross profit

293.4

179.5

4.0

2.4

Exploration expenses
Selling, general andadministrative expenses

42.5

Operating income

246.7

38.9

Increase in sales volume :+19.6

Decrease in unit price :(147.5)

Exchange rate
(Appreciation of Yen) :(48.4)(23.2%)

Others :(1.0)(113.9)(38.8%)(1.6)(39.8%)

Cost of sales for
Crude Oil :(Change)

141.6(45.9)

Cost of sales for
Natural Gas* :(Change)

63.0(16.9)(3.5)(8.4%)* Including LPG

138.0(108.7)(44.1%)
Main factors for change :Other income

39.8

16.4

(23.4)(58.7%)

Other expenses

27.8

22.3(5.4)(19.7%)

Ordinary income

258.8

132.1

(126.6)(48.9%)

Total income taxes

219.5

107.4

(112.0)(51.0%)Net income (loss) attributable
to non‐controlling interests

(6.1)

8.9

15.1

‐

Net income attributable toowners of parent

45.4

15.7

(29.7)(65.4%)

7

Absence of gain on sales of marketablesecurities(11.4)
Absence of foreign exchange gain

(9.1)

Main factors for change :Provision for allowance for recoverableaccounts under production sharing(16.9)
Provision for exploration projects(1.6)
Foreign exchange loss
+17.1

Other Income/Expenses(Billions of Yen)

ChangeApr.‐Sep. ’16%Change

Other income

39.8

16.4

(23.4)(58.7%)

Interest income

4.2

5.1

0.8

19.7%

Dividend income

2.5

1.3

(1.1)

(46.4%)

Gain on sales of marketable securities

11.4

‐

(11.4)‐

Foreign exchange gain

9.1

‐

(9.1)

‐

Other

12.4

9.9(2.4)(19.7%)

Other expenses

27.8

22.3(5.4)(19.7%)

Interest expense

2.1

2.4

0.2

9.8%

Equity in losses of affiliates

0.9

0.4(0.4)(53.3%)

Provision for allowance for recoverable accounts
under production sharing

18.0

1.0(16.9)(94.3%)

Provision for exploration projects

1.6‐(1.6)

‐‐

17.1

17.1

‐

5.0

1.2

(3.7)

(74.1%)

Foreign exchange loss
Other

8

Apr.‐Sep. ’15

Analysis of Net Income Decrease(億円)(Billions of Yen)
100

19.6
50

112.0
45.4
(15.1)

020.2
‐50

9

3.5

63.4
(36.5)(147.5)

‐100

‐150

15.7(48.4)
Net income
attributableto ownersof parent
Apr. –Sep.
‘15

Increasein SalesvolumeDecrease in Exchange rate
Unit price (Appreciationof yen)
Net Sales(1.0)
OthersDecrease in Decrease in DecreaseinExploration
Cost ofexpenses and SG&Asales
Allowance for
exploration*

OtherNet income
Decrease in Net income(loss)
incomeattributable
Incomeand expenses tax payable attributableto owners
to non‐controlling of parentinterests
Apr. –Sep.
‘16*Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects

Balance Sheet(Billions of yen)
Current assets

Mar. ’16

Sep. ’16

Change%Change984.3

933.3(51.0)(5.2%)

1,752.6

1,716.2(36.3)(2.1%)

Intangible assets

541.4

497.4

(44.0)(8.1%)

Recoverable accounts underproduction sharing

727.7

714.7

(13.0)(1.8%)

Other495.4

302.1(193.2)(39.0%)

Less allowance for recoverable
accounts under production sharing(131.7)(133.3)

(1.6)

1.2%

Total assets

4,369.8

4,030.5(339.2)(7.8%)

Current liabilities

319.1

262.0

(57.1)(17.9%)

Long‐term liabilities

871.9

767.6

(104.2)(12.0%)

3,178.8

3,000.9(177.8)(5.6%)(Non‐controlling interests)245.9

247.2

1.3

0.5%

Total liabilities and net assets

4,369.8

4,030.5(339.2)(7.8%)Net assets per share (Yen)

2,008.34

1,885.66(122.68)(6.1%)

Tangible fixed assets

Total net assets

10

Available fund (Billions of yen)
768.5*Breakdown• Cash and deposits:
749.6• Available investment securities :18.9*Amounts to be allocated to theinvestments based on the investment
plan

Summary of financial information
for Ichthys downstream JV (100%basis, including the Company’s
equity share 62.245%)(Billions of yen)
• Current assets :50.6• Fixed assets :2,549.2• Total assets:
2,599.9

Accumulated other comprehensive
income (Billions of yen) : (181.7)
・Unrealized holding gain on
securities:(1.1)
・Unrealized loss fromhedging instruments :+3.3
・Translation adjustments: (183.9)

Statement of Cash Flows(Billions of Yen)

Apr.‐Sep. ’15

Apr.‐Sep. ’16

Change%Change

Income before income taxes

258.8

132.1

(126.6)(48.9%)

Depreciation and amortization

35.1

43.2

8.1

23.3%

Recovery of recoverable accounts under production sharing (capital expenditures)

26.8

37.2

10.4

38.8%

Recoverable accounts under production sharing (operating expenditures)(29.3)

(1.5)

27.8

(94.7%)

Income taxes paid

(226.7)(110.4)116.2(51.3%)

Other

32.9

15.9

(16.9)(51.5%)Net cash provided by (used in) operating activities

97.6

116.6

18.9

19.4%

Payments for time deposits / Proceeds from time deposits

257.9

166.3

(91.6)(35.5%)

Payments for long‐term time deposits(63.8)‐

63.8‐

Payments for purchases of tangible fixed assets(243.9)(143.1)

100.7(41.3%)

Payments for purchases of marketable securities/investment securities and proceedsfrom sales of marketable securities/investment securities

124.2

(0.1)

(124.4)‐

Investment in recoverable accounts under production sharing (capital expenditures)(40.2)(24.3)

15.9(39.6%)

Long‐term loans made / Collection of long‐term loans receivable(192.2)(65.4)

126.7(65.9%)

Payments for purchase of mining rights(133.6)

‐

133.6

‐

Other

(21.4)

(9.3)

12.0

(56.2%)Net cash provided by (used in) investing activities(313.1)(76.2)

236.8(75.7%)Net cash provided by (used in) financing activities

46.9(26.4)(73.4)‐Cash and cash equivalents at end of the period

90.9

62.5

(28.4)(31.3%)

11

Differences between Consolidated Financial Forecasts andActual Results for the six months ended September 30, 2016
‐ Assumptions
1st half (Previous Forecasts)(August 4, 2016)
Crude oil price (Brent) (US$/bbl)

46.0

Exchange rate (yen/US$)

106.6(November 11, 2016)

1st half (Actual Results)

Crude oil price (Brent) (US$/bbl)

47.0

Exchange rate (yen/US$)

105.3‐ Differences between Consolidated Financial Forecasts and Actual Results for the six months ended September 30, 2016
Previous Forecasts(August 4, 2016)

12

Actual Results

Change% Change

Net Sales (billions of yen)

395.0

389.6

(5.3)

(1.4%)

Operating income (billions of yen)

136.0

138.0

2.0

1.5%

Ordinary income (billions of yen)

128.0

132.1

4.1

3.3%

Net income attributable to owners ofparent (billions of yen)

10.0

15.7

5.7

57.3%

Revisions of Financial Forecasts
for the year ending March 31, 2017
‐ Assumptions
1st half

2nd halfFull year

Crude oil price (Brent) (US$/bbl)

46.0

45.0

45.5

Exchange rate (yen/US$)

106.6

105.0

105.8

(November 11, 2016)

1st half

2nd half

Full year

Crude oil price (Brent) (US$/bbl)

47.0※1

50.0

48.5

Exchange rate (yen/US$)

105.3※2

105.0

105.1

(August 4, 2016)*1 1st quarter (Actual) : US$ 47.0/bbl, 2nd quarter (Actual) : US$47.0/bbl*2 1st quarter (Actual) : ¥108.2/US$1, 2nd quarter (Actual) : ¥102.4/US$‐ Financial Forecasts for the year ending March 31, 2017
Previous forecasts(August 4, 2016)

Change% Change

Net sales (billions of yen)

797.0

830.0

33.0

4.1%

Operating income (billions of yen)

257.0

283.0

26.0

10.1%

Ordinary income (billions of yen)

251.0

284.0

33.0

13.1%

Net income attributable to owners ofparent (billions of yen)

17.0

26.0

9.0

52.9%

‐ Dividend per share
Year ending March 31, 2017 (yen)13

Revised forecasts(November 11, 2016)

End of fiscal year(forecast)End of 2Q

99