Financial Results for the year ended March 31, 2015
Support Material

INPEX CORPORATION
May 14, 2015

Cautionary Statement
This presentation 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’s
performance, achievements or financial position to be materially different from any
future 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 the exploration, developmentand production
The Company undertakes no obligation to publicly update or revise the disclosureof information in this presentation (including forward‐looking information) after thedate of this presentation.
1

Highlights of the Consolidated Financial Results
for the year ended March 31, 2015
Apr. ’13 ‐ Mar. ‘14

Apr. ‘14 ‐ Mar. ‘15

1,334.6

1,171.2(163.3)(12.2%)

Crude Oil Sales

858.7

730.4

(128.3)(14.9%)Natural Gas Sales (including LPG)

455.4

421.8

(33.5)(7.4%)

Others

20.4

18.9

(1.5)

(7.4%)

Operating Income (Billions of yen)

733.6

534.8

(198.7)(27.1%)

Ordinary Income (Billions of yen)

750.0

575.1

(174.9)(23.3%)Net Income

183.6

77.8

(105.8)(57.6%)

125.7853.29(72.49)(57.6%)Net Sales(Billions of yen)(Billions of yen)

Net income per share (Yen)*

Change%Change

Average number of INPEX shares issued and outstanding during the year ended March 31, 2015: 1,460,357,200

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

107.56

86.57(20.99)(19.5%)

Average exchange rate (¥/$)

100.17109.779.60 yen

9.6% yendepreciation

depreciation*The company conducted a stock split at a ratio of 1:400 of common stock on October 1, 2013.
Net income per share is calculated based on the assumption that the stock split was conducted on April 1, 2013.
2

Crude Oil Sales
Apr. ‘13 ‐ Mar. ’14

Apr. ‘14 ‐ Mar. ’15

Net Sales (Billions of yen)

858.7

730.4

(128.3)(14.9%)

Sales volume (thousand bbl)

79,17180,558

1,387

1.8%

Average unit price of overseas
production ($/bbl)

107.7884.00(23.78)(22.1%)

Average unit price of domestic
production (¥/kl)

67,81761,080(6,737)(9.9%)

Average exchange rate (¥/$)

100.26107.797.53 yendepreciation

7.5% yendepreciation

Apr. ‘13 ‐ Mar. ’14

Apr. ‘14 ‐ Mar. ’15

ChangeJapan861(137 thousand kl)

791(126 thousand kl)(70)(‐11 thousand kl)(8.1%)

Asia/Oceania12,151

11,015(1,135)(9.3%)

Eurasia (Europe/NIS)

8,697

9,946

1,249

14.4%

Middle East/Africa

57,42058,773

1,353

2.4%

Americas4333(10)(24.1%)

79,17180,558

1,387

1.8%

Sales volume by region(thousand bbl)

Total
3

Change%Change%Change

Natural Gas Sales (excluding LPG)
Apr. ‘13 ‐ Mar. ‘14

Apr. ‘14 ‐ Mar. ‘15

Net Sales (Billions of yen)

431.1

401.3

(29.8)(6.9%)

Sales volume (million cf)

327,117309,485(17,631)(5.4%)

13.09

11.36(1.73)(13.2%)

50.31

57.56

7.2514.4%

100.08108.268.18 yendepreciation

8.2% yendepreciation

Sales volume by region (million cf)

Apr. ‘13 ‐ Mar. ‘14

Apr. ‘14 ‐ Mar. ‘15

Change%ChangeJapan

67,106(1,798 million m3*)

66,679(1,787 million m3*)

(427)(‐11 million m3*)

(0.6%)

Asia/Oceania

219,771204,231(15,539)(7.1%)

Eurasia (Europe/NIS)‐‐‐‐

Middle East/Africa‐‐‐‐

Americas40,24038,575(1,665)(4.1%)

327,117309,485(17,631)(5.4%)

Apr. ‘13 ‐ Mar. ’14

Apr. ‘14 ‐ Mar. ’15

Change24.2

20.5

Average unit price of overseas
production ($/thousand cf)
Average unit price of domestic
sales (¥/m3)
Average exchange rate (¥/$)

Total

Change%Change(FYI) LPG Sales

4

Net Sales (Billions of yen)

(3.7)

%Change(15.3%)*1m3=41.8605MJ

Analysis of Net Sales Decrease(Billions of Yen)

1,400(8.9)

1,200

74.5
(1.5)
(227.5)

1,000
800
600

Crude Oil

+14.9

Crude Oil

+50.4

Natural Gas (including LPG)

(23.8)Natural Gas (including LPG)

+24.0

1,334.6

Crude Oil

(193.8)Natural Gas (including LPG)

(33.7)

1,171.2

40020005Net Sales
Decrease in
Apr. ‘13 ‐ Mar. ‘14 Sales Volume

Decrease in
Exchange rate
Unit Price (Depreciation of Yen)

OthersNet Sales
Apr. ‘14 ‐ Mar. ’15

Statement of Income(Billions of Yen)

Apr. ‘13 ‐ Mar. ’14 Apr. ‘14 ‐ Mar. ’15

Change%Change

1,334.6

1,171.2(163.3)(12.2%)

Cost of Sales

490.4

525.4

35.0

7.1%

Gross profit

844.2

645.7

(198.4)(23.5%)

Exploration expenses

28.2

23.2

(4.9)

(17.6%)Net Sales

Selling, general andadministrative expenses

82.3

87.6

5.2

6.4%

Operating Income

733.6

534.8

(198.7)(27.1%)

Decrease in Sales Volume :(8.9)
Decrease in Unit Price :(227.5)
Exchange rate
(Depreciation of Yen) :+74.5
Others :(1.5)
Cost of sales for
Crude Oil :(Change)
Cost of sales for
Natural Gas :(Change)* Including LPG

308.5
+14.7
202.0
+19.4

Main Factors;

Other income

50.7

101.7

51.0

100.6%

Other expenses

34.2

61.4

27.2

79.5%

Ordinary Income

750.0

575.1

(174.9)(23.3%)

+7.8

‐

35.1

35.1

‐

563.1

464.4

(98.7)(17.5%)

3.2

(2.2)

(5.4)

‐Main Factors;
Provision for allowance for recoverable
accounts under production sharing+11.4
Equity in losses of affiliates+8.3
Loss on disposal of fixed assets
+6.1

183.6

77.8(105.8)(57.6%)

Extraordinary Loss
(Impairment loss)
Income taxes
Minority interests
Net Income

Gain on transfer of mining rights+26.7

Foreign exchange gain

+19.5

Gain on sales of marketable securities

Joslyn Oil Sands Project :27.5

JPDA06‐105 Block in the Timor Sea Joint
Petroleum Development Area (JPDA): 7.56Other Income/Expenses(Billions of Yen)

Change%ChangeOther income

50.7

101.7

51.0

100.6%

Interest income

17.4

11.2(6.2)(35.7%)

Dividend income

9.2

6.6(2.5)(27.7%)

Gain on sales of marketable securities

10.3

18.1

7.8

75.6%

Gain on transfer of mining rights

0.7

27.5

26.7

‐

‐

19.5

19.5

‐

Other

12.9

18.6

5.7

44.4%

Other expenses

34.2

61.4

27.2

79.5%

Interest expense

2.3

2.9

0.6

26.2%

Equity in losses of affiliates

5.0

13.4

8.3

166.0%

Provision for allowance for recoverable accounts
under production sharing

8.0

19.4

11.4

142.3%

Provision for exploration projects

1.1

0.8(0.3)(28.3%)

Foreign exchange loss

4.2‐(4.2)(100.0%)Loss on disposal of fixed assets

0.0

6.2

6.1

‐Other

13.3

18.5

5.2

39.2%

Foreign exchange gain

7Apr. ‘13 ‐ Mar. ‘14 Apr. ‘14 ‐ Mar. ‘15

Analysis of Net Income Decrease(億円)(Billions of Yen)
200

150

100

Main Factors;(8.9)‐ Gain on transfer of mining rights+26.7(Gain on transfer of the Ichthys upstream JV share, etc.)‐ Foreign exchange gain
+23.8
Foreign exchange loss 4.2 Apr. ’13 – Mar. ‘14Foreign exchange gain 19.5 Apr. ‘14 – Mar. ‘15

183.6

98.7

50

101.7

74.5

77.8

34.8

(1.5)

05.4

(35.0)

(6.1)

(5.2)

(35.1)‐50(227.5)‐100

Net Income Decrease Decrease in Exchange rate Others
Apr. ‘13 – in Sales Unit Price (Depreciation
Mar. ‘14
Volumeof Yen)
Net Sales

8

Extraordinary Decrease in Minority Net Income
Increase in Increase in Increase
OtherLoss
IncomeCost of ExplorationinIncome
Interest Apr. ‘14 –Sales Expenses and SG&A and Expenses (Impairment Tax payableMar. ‘15loss)
Allowance for
Exploration**Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects

Balance Sheet(Billions of yen)
Current assets

Mar. ’14

Mar. ’15

Change%Change

1,140.2

1,342.4

202.2

17.7%

Tangible fixed assets

951.7

1,497.6

545.8

57.3%

Intangible assets

439.1

458.7

19.5

4.5%

Recoverable accounts underproduction sharing

685.9

703.2

17.3

2.5%

Other

944.4

618.7

(325.7)(34.5%)

Less allowance for recoverable
accounts under production sharing(123.4)(121.7)1.7(1.4%)

Total assets

4,038.1

4,499.1

461.0

11.4%Current liabilities

375.6

365.2

(10.4)(2.8%)

Long‐term liabilities

666.4

845.2

178.8

26.8%

2,996.0

3,288.7

292.6

9.8%

204.9

222.0

17.0

8.3%

Total liabilities and net assets

4,038.1

4,499.1

461.0

11.4%

Net assets per share (Yen) **1,911.25

2,099.95

188.709.9%

Total net assets(Minority interests)**The company conducted a stock split at a ratio of 1:400 of common stock on October 1, 2013.
Net assets per share is calculated based on the assumption that the stock split was conducted on April 1, 2013.

9

Available fund (Billions of yen)
1,263.2*
Breakdown• Cash and deposits:
922.6• Long‐term time deposits : 120.2• Marketable securities :162.2• Available investment securities :58.0*Amounts to be allocated for theinvestments for development andexploration activities until the year
ending March 31, 2017 following the“Medium‐ To Long–Term Vision ofINPEX”.

Summary of financial information
for Ichthys downstream JV (100%basis, including the Company’s
equity share 62.245%)(Billions of yen)
• Current assets :42.6• Fixed assets :2,213.8• Total assets:
2,256.5
Shareholders’ equity(Billions of yen)
Retained earnings :+51.7
Accumulated other comprehensive
income :+223.8・Unrealized holding gain onsecurities:+1.3
・Unrealized loss fromhedging instruments :(18.8)
・Translation adjustments: +241.3

Statement of Cash Flows(Billions of Yen)

Apr. ‘13 ‐ Mar. ‘14

Apr. ‘14 ‐ Mar. ‘15

Change%Change

Income before income taxes and minority interests

750.0

540.0

(210.0)(28.0%)

Depreciation and amortization

50.9

52.5

1.6

3.1%

Recovery of recoverable accounts under production sharing (capital expenditures)

67.0

75.5

8.5

12.7%

Recoverable accounts under production sharing (operating expenditures)(60.4)(60.7)

(0.2)

0.5%

Income taxes paid

(567.1)(478.8)88.2(15.6%)

Other(26.9)

88.2

115.1

‐

Net cash provided by operating activities

213.5

216.7

3.2

1.5%

Payments for time deposits/Proceeds from time deposits

64.9

372.1

307.1

‐

Payments for long‐term time deposits/Proceeds from long‐term time deposits(353.3)(112.1)241.1(68.2%)

Purchase of tangible fixed assets(323.6)(448.3)(124.7)38.5%

Purchases of marketable securities/investment securities and proceeds from sales ofmarketable securities/investment securities

323.2

256.6

(66.5)(20.6%)

Investment in recoverable accounts under production sharing (capital expenditures)(104.0)(70.4)

33.6(32.3%)

Long‐term loans made / Collection of long‐term loans receivable

38.3(111.1)(149.4)‐

Payments for purchase of mining rights(42.7)(18.4)

24.3(56.9%)

Proceeds from transfer of mining rights

0.7

59.4

58.6

‐

Other0.9

(8.7)

(9.7)

‐(395.5)(81.0)

314.4(79.5%)Net cash provided by (used in) financing activities

48.9(4.1)(53.1)‐Cash and cash equivalents at end of the period

117.5

260.9

143.4

122.1%Net cash used in investing activities

10Financial Indices
Equity Ratio**

Net Debt/Total Capital Employed (Net)*
Mar.ʹ14Mar.ʹ15(16.8%)(31.9%)

D/E Ratio***

11*

20.9%

22.1%

Mar.ʹ14Mar.ʹ15

**
***

69.1%

68.2%

Mar.ʹ14Mar.ʹ15

Net Debt/Total Capital Employed (Net) = (Interest‐bearing debt ‐ Cashand deposits ‐ Public and corporate bonds and other debt securities(with determinable value) – CP etc. – Long term time deposits)/(Netassets + Interest‐bearing debt ‐ Cash and deposits ‐ Public andcorporate bonds and other debt securities (with determinable value) –CP etc.– Long term time deposits)
Equity Ratio = (Net assets ‐ Minority interests)/Total assets
D/E Ratio = Interest‐bearing debt/ (Net asset ‐ Minority interests)

Consolidated Financial Forecasts
for the year ending March 31, 2016
1st Half

2nd Half

Full year

Brent oil price ($/bbl)

65.0

65.0

65.0

Average exchange rate (¥/$)

120.0

120.0

120.0

Mar. ‘15(Actual)Mar. ‘16(Forecasts )Full YearNet Sales (Billions of yen)

Change% Change

1,171.2

1,249.0

77.8

6.6%

Operating Income (Billions of yen)

534.8

489.0

(45.8)(8.6%)

Ordinary Income (Billions of yen)

575.1

512.0

(63.1)(11.0%)Net income attributable to INPEXCORPORATION (Billions of yen)

77.8

70.0(7.8)(10.0%)Net Sales (Billions of yen)

663.1

595.0(68.1)(10.3%)

Operating Income (Billions of yen)

346.7

234.0

(112.7)(32.5%)

Ordinary Income (Billions of yen)

368.4

243.0

(125.4)(34.1%)Net income attributable to INPEXCORPORATION (Billions of yen)

88.7

34.0

(54.7)(61.7%)

2Q End9.0

9.0

FY End

9.0

9.0

TOTAL

18.0

18.0

1st Half

Cash dividends per
share (yen)12Sales and Investment Planfor the year ending March 31, 2016
Mar. ’15(Actual)

Change% Change

Sales Volume

Crude oil (thousand bbl)180,558

119,854

39,29648.8%

Natural gas (million cf)2

309,485

322,271

12,786

4.1%

Overseas242,807

252,4179,6104.0%

Japan66,679(1,787 million m3)

69,854(1,872 million m3)

3,175(85million m3)

4.8%

2,851

2,747(104)(3.6%)LPG (thousand bbl)3(Billions of yen)Mar. ‘15(Actual)Mar. ‘16(Forecasts)

Change% Change

Development expenditure4

929.0

989.0

60.0

6.5%

Other capital expenditure

27.9

38.0

10.1

36.2%

Exploration expenditure

72.6

57.0

(15.6)(21.5%)

41.1

(2.4)

(5.5%)

29.1

18.6

177.1%

Exploration expenses andProvision for explorations5(Minority Interest Portion)613

Mar. ‘16(Forecasts )Exploration expenses 23.2

Exploration expenses 13.1

Provision for explorations 43.5

Provision for explorations
28.0

20.2

10.5

Note
1 CF for domestic crude oil sales and petroleum products : 1kl=6.29bbl
2 CF for domestic natural gas sales : 1m3=37.32cf
3 CF for domestic LPG sales : 1t=10.5bbl
4 Development expenditure includes investment in Ichthys downstream
5 “Provision for allowance for recoverable accounts under production sharing” + ”Provision for exploration projects”
6 Capital increase from minority shareholders, etc.

Net Income Sensitivities (1/2)
 Sensitivities of crude oil price and foreign exchange fluctuation on
consolidated net income for the year ending March 31, 2016 (Note 1)(The impact of Exchange Rate is shown in more detail below.)(Billions of yen)

Crude Oil Price; $1/bbl increase (decrease) (Note 2)+3.0 (‐3.0)

Exchange Rate; ¥1 depreciation (appreciation) against theU.S. dollar+1.2 (‐1.2)

 Flow effect on net income from operating activities (Note 3)
 Stock effect on net income (valuation for assets and liabilities
denominated in the U.S. dollar) (Note 4)+1.9 (‐1.9)‐0.7 (+0.7)(Note1) The sensitivities represent the impact on net income for the year ending March 31, 2016 against a $1 /bbl increase (decrease) of Brent crude oil
price on annual average and a ¥ 1 depreciation (appreciation) against the U.S. dollar. These are based on the financial situation at the beginningof the fiscal year. These are for reference purpose s only and the actual impact may be subject to change in production volumes, capital
expenditures and cost recoveries, and may not be constant, depending on crude oil prices and exchange rates.
(Note2) This is a sensitivity on net income by fluctuation of crude oil price and is subject to the average price of crude oil (Brent) in the fiscal year.
(Note3) This is a sensitivity on net income from operating activities by fluctuation of the yen against the U.S. dollar and is subject to the averageexchange rate in the fiscal year.
(Note4) This is the impact of foreign exchange differences for foreign currency‐denominated assets and liabilities as of the beginning of the fiscal year,
and is affected by the difference between the exchange rate at the end of the fiscal year and the end of the previous fiscal year. As of thebeginning of the fiscal year, as foreign currency‐denominated liabilities are greater than foreign currency‐denominated assets, exchange
valuation gains will occur when the yen is appreciated against the U.S. dollar, while exchange valuation losses will occur when the yen
becomes weaker against the U.S. dollar. As shown in the next slide, due to the redemption of the bonds denominated in the U.S. dollar, thesensitivity for stock effect on net income is expected to near zero during this fiscal year.

14

Net Income Sensitivities (2/2)
Details on valuation of U.S. dollar‐denominated assets and liabilities

15




The assets and liabilities denominated in the U.S. dollar are practically balanced in the following chart.
However, a portion of assets is held as bonds denominated in the U.S. dollar (as shown in green in the following
chart), and exchange gain or loss derived from the yen appreciation or depreciation against the U.S. dollar ofsuch a portion does not affect a statement of income, but net assets in the balance sheet expressed in unrealized
holding gain or loss on securities.

All the remaining amounts of bonds denominated in the U.S. dollar are scheduled to be redeemed by January,
2016, and such amounts will be deposited in an U.S. dollar account. Consequently, the assets and liabilities
denominated in the U.S. dollar which raise exchange gain or loss in a statement of income will gradually bebalanced and the sensitivity for stock effect on net income is expected to near zero during the fiscal year ending
March 2016.