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

Consolidated Financial Results
for the Nine Months Ended December 31 , 2013
＜Supplementary Material＞
February 7 , 2014

Japan Petroleum Exploration Co., Ltd.

Cautionary Statement
Any information contained herein with respect to JAPEX’s plans, estimates, strategies
and other statements that are not historical facts are forward-looking statements about
the future performance of JAPEX. Readers should be aware that actual results andevents may differ substantially from these projections due to various factors.
The provision of this document should not be construed as a solicitation for investment.
Copyright : All information contained herein is protected by copyright, and may not be
copied or reproduced without the prior consent of JAPEX.
Note: Abbreviations used herein are as follows:
1H = First half (1Q-2Q)
2H = Second half (3Q-4Q)(a) = Actual result(e) = Estimate
FY = Fiscal Year (FY2014, for instance, means 12 months ending March 31, 2014)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:Investor Relations Group,Media & Investor Relations Department,
Japan Petroleum Exploration Co., Ltd.
Tokyo, JAPANTEL: +81-3-6268-7111

2

$130

¥130

$125

¥125$120¥120$115

¥115

$110

¥110

$105

¥105

$100
$95

crude oil price US$/bbl（left axis）

¥100
¥95

$90

¥90

$85

¥85

$80

¥80

$75

exchange rate ¥/$（right axis）[foreign exchange rate: JP¥/US$][crude oil price: US$/bbl]

Trends in Crude Oil Price and Foreign Exchange Rate

¥75
¥70

2010-122011-01
2011-02
2011-03
2011-04
2011-05
2011-06
2011-072011-08
2011-09
2011-10
2011-11
2011-12
2012-01
2012-022012-032012-04
2012-05
2012-06
2012-072012-08
2012-09
2012-10
2012-11
2012-122013-012013-022013-032013-04
2013-05
2013-06
2013-072013-08
2013-09
2013-10
2013-112013-12$70

Japan Crude Cocktail (JCC) Price in the first 10 days of January 2014
on a prompt report basis : US$ 113.00/bbl JP¥ 104.08US$3

Actual Results for 1Q-3Q FY2014 (Summary)[ Billion ￥]Net sales

FY2013
1Q-3Q(a)FY2014
1Q-3Q(a)change164.5

180.2+15.7%
Change+9%Operating income

7.4

15.9+8.5 +113%

Ordinary income

11.6

30.0

+18.3 +157%(18.0)

18.1+36.2

Net income

3Q ResultBillion ￥190Billion ￥40

180.2

Net Sales (left axis)

170

164.5

150

20－%

18.1

15.9

JCC price
US$/bbl115.36109.91130(5.45)

30

30.0

10

11.6
7.4

Exchange rate
JP¥/US$

79.93

97.92

+17.99Bitumen price
CA$/bbl

51.05

53.93

+2.88

Exchange rate
JP¥/CA$

79.14

94.83

+15.69110

090(10)(18.0)

70

Main points of difference with FY2013□ Operating income + ¥ 8.5 billion
Gross profit+ ¥ 7.6 billion
Exploration expenses+ ¥ 1.6 billion□ Ordinary income + ¥ 18.3 billion
Equity in earnings of affiliates + ¥ 7.9 billion
Foreign exchange profit+ ¥ 0.8 billion□ Net income+ ¥ 36.2 billion
Extraordinary income(losses) + ¥ 26.6 billion
Income taxes etc.
- ¥ 9.3 billion(20)
FY2013
1Q-3Q

FY2014
1Q-3Q
Operating income (right axis)
Ordinary income (right axis)
Net income (right axis)

4Actual Sales of Natural Gas for 1Q-3Q FY2014

Natural gas ：Sales volume （total）

FY2013
1Q-3Q(a)

FY2014
1Q-3Q(a)Sales volume

1,067

985

Net sales

47,37749,760+2,382

Sales volume : Million M3
Net sales : Million ￥3Q ResultchangeOf which, domestically produced gas（81） Million M3

Breakdown of equity natural gas
Domestically produced gas:

Sales volume753621（131）

Overseas subsidiary gas:

Sales volume094+94

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Sales volume of “Overseas subsidiary gas” stated herein are amounts of Japex (U.S.) Corp. and JAPEXMontney Ltd..

Sales volume decreased by 81 million M3 (-7%) vs FY2013
Net sales increased by ¥2.3 billion (+5%) vs FY2013-Increase in sales price-Increase in sales volume of overseas subsidiary gas

5(a)

(a)

3Q Result

Actual Sales of Crude Oil for 1Q-3Q FY2014
FY2013
1Q-3Q(a)

FY2014
1Q-3Q(a)Sales volume

1,351

1,212(138)

Net sales

69,22774,666+5,439Domestically produced
crude oil:

Sales volume

349

292

(56)

Net sales

20,55920,180(379)Overseas subsidiary
crude oil:

Sales volume

2

17+14

Net sales

121

954+832

Sales volume

262

257

(5)

Net sales

6,663

8,277+1,613

Sales volume : Thousand KLNet sales : Million ￥Crude oil:change- Rise in sales price.

Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

US$/bbl115.36109.91(5.45)

Exchange rate

JP¥/US$

79.93

97.92

+17.99Bitumen price

CA$/bbl

51.05

53.93

+2.88

Exchange rate

JP¥/CA$

79.14

94.83

+15.69

Sales volume and Net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Royalty is excluded in the Net sales and price of Bitumen.
Sales volume and Net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex (U.S.) Corp. and JAPEX Montney Ltd..

63Q Result

Actual Results for 1Q-3Q FY2014 (vs FY2013)≪Causes of increase(+) or decrease(-) ≫FY2013
1Q-3QFY2014
1Q-3Q

(a)

(a)

Net sales

164,519

180,259+15,740

Gross profit

39,22046,874+7,653+¥1.9 billion
Asset retirement obligations- ¥2.4 billion
Overseas consolidated subsidiaries +¥ 0.4 billion

Exploration expenses

9,374

7,692(1,681)

Exploration expenses

SG&A expenses

22,36923,204+834

Operating income

7,477

15,977+8,500Non-operating income(expenses)

4,167

14,052+9,885

Ordinary income

11,64430,030+18,385

Extraordinary income(losses)(34,708)(8,052)+26,656

Income taxes(5,566)

3,797+9,363586

19(566)(18,083)

18,161+36,245[ Million ￥]Minority interests in income
Net income

ChangeGross profit
Domestic crude oil and natural gas +¥7.5 billion

7LNG substitution expense

Overseas exploration
Domestic exploration+¥2.7 billion- ¥1.0 billion

Non-operating income (expenses)
Equity in earnings of affiliates+¥7.9 billion
Foreign exchange profit+¥0.8 billion
Extraordinary income (losses)
Gain on transfer of mining rights - ¥2.5 billion
Decreased of an impairment loss on business assetsfor production operation of Yufutsu oil & gas field *+¥29.0 billion* Please refer to the “Notice of Financial Forecast Revision andRecording of an Impairment Loss on Business Assets” released on
the same day of this material, February 7, 2014.

Revised Full Year Estimates

Revised Estimates in FY2014 (Summary)
FY2014
InitialEstimate

FY2014
RevisedEstimatechange%change

232.7

272.8

+40.1

+17%

Operating income

20.7

21.5

+0.8

+4%

Ordinary income

28.8

38.1

+9.3

+32%

Net income

21.5

24.1+2.6+12%

100.00109.93+9.93

Exchange rate
JP¥/US$

90.00

98.43

+8.43

Bitumen price
CA$/bbl45.87

51.58+5.71

Exchange rate
JP¥/CA$

90.00

98.42+8.42

1Q (a)

2Q (a)

3Q (a)

4Q (e)

111.17105.49112.37110.00

46.52

58.62

57.01

44.53

[ Billion ￥]Net Sales

JCC price
US$/bbl

JCC price
US$/bbl
Bitumen price
CA$/bblMain points of revised estimate : causes of increase(+) or decrease(-)□Operating income□Ordinary income□Net income

Billion￥Billion￥Net Sales (left axis)+¥0.8 billion (+4%) +Rise in crude oil prices–Record of an asset retirement obligations+¥9.3 billion (+33%) +Equity in earnings in affiliates+Increase of foreign exchange profit+¥2.6 billion (+12%) –Record of an impairment loss on business assets

8

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

Revised Full Year Estimates

Revised Estimated Natural Gas Sales in FY2014 (vs Initial Estimate)
FY2014
InitialEstimate(May 2013)

Sales volume : Million M3
Net sales : Million ￥Natural gas ：FY2014
RevisedEstimate(Feb.2014)

Sales volume （total）
changeSales volume1,289

1,418+129

Net sales

68,47871,759+3,282

Breakdown of equity natural gas
Domestically produced gas:

Sales volume887849(38)Overseas subsidiary gas:

Sales volume4

168+163

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Sales volume of “Overseas subsidiary gas” stated herein are amounts of Japex (U.S.) Corp. and JAPEXMontney Ltd..

Sales volume increased by 129 million M3 (+10%) vs initial estimate
Net sales increased by ¥3.2 billion (+5%) vs initial estimate-Rise in sales price-Increase in sales volume of overseas subsidiary gas

9Of which, domestically produced gas
Million M3

Revised Full Year Estimates

Revised Estimated Crude Oil Sales in FY2014 ( vs Initial Estimate)
FY2014
InitialEstimate(May 2013)

FY2014
RevisedEstimate(Feb.2014)

Sales volume

1,897

1,897

―

Net sales

95,935

118,570+22,635

Domestically produced
crude oil:

Sales volume

384

385

+1Net sales

22,15926,708+4,549Overseas subsidiary
crude oil:

Sales volume

369

284

(84)

Net sales

19,881

18,619(1,262)

Sales volume

371

343

(28)

Net sales

9,62310,951+1,328

Sales volume : Thousand KL
Net sales : Million ￥Crude oil:change- Rise in sales price.

Breakdown of equity oil

Bitumen:- Decrease in sales volume ofcrude oil from Japex Garraf Ltd.

Oil price and Exchange rate assumptions
JCC price

US$/bbl

100.00109.93+9.93

Exchange rate

JP¥/US$

90.00

98.43

+8.43

Bitumen price

CA$/bbl

45.87

51.58

+5.71

Exchange rate

JP¥/CA$

90.00

98.42

+8.42

Sales volume and Net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Royalty is excluded in the Net sales and price of Bitumen.
Sales volume and Net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex (U.S.) Corp., JAPEX Montney Ltd.
and Japex Garraf Ltd., overseas consolidated subsidiaries.

10Revised Full Year Estimates

Revised Estimates in FY2014 ( vs Initial Estimate)[ Million ￥]Net sales

FY2014
InitialEstimate

FY2014
RevisedEstimate(May 2013)(Feb.2014)

232,692

272,802

Change≪Causes of increase(+) or decrease(-) ≫Gross profit+40,110

Domestic crude oil and natural gas +¥2.2 billion

Gross profit

61,97264,161+2,189- ¥2.4 billion
Overseas consolidated subsidiaries +¥ 2.3 billion

Exploration expenses

9,184

10,251+1,068

Exploration expenses

SG&A expenses

32,06632,369+303

Operating income

20,722

21,540+818

Non-operating income (expenses)

8,062

16,543+8,481

Ordinary income

28,78338,083+9,300Extraordinary income (losses)

Extraordinary income (losses)(90)(8,059)(7,969)Impairment loss on business assets for
production operation of Yufutsu oil & gas field *Income taxes

6,502

5,158(1,344)

680

777

+97

21,511

24,089+2,578

Asset retirement obligations

Minority interests in income
Net income

11Overseas exploration
Domestic exploration- ¥0.6 billion- ¥0.5 billion

Non-operating income (expenses)
Equity in earnings of affiliates+¥6.1 billion
Foreign exchange profit+¥1.4 billion- ¥7.9 billion* Please refer to the “Notice of Financial Forecast Revision andRecording of an Impairment Loss on Business Assets” released on
the same day of this material, February 7, 2014.

Revised Full Year Estimates

Revised Estimated Natural Gas Sales in FY2014 (vs FY2013)changeFY2013

FY2014 Revised estimate (Feb. 2014)

Full (a)1Q-3Q(a)Sales volume

1,455

985

432

1,418(38)

Net sales

69,79549,76021,99971,759+1,964

Domestically produced gas:

Sales volume

1,019

621

228849(171)Overseas subsidiary gas:

Sales volume

194

73

168+166

Sales volume : Million M3
Net sales : Million ￥Natural gas:

4Q(e)Full (e)(vs FY2013)

Breakdown of Natural gas

Sales volume of “Domestically produced gas” stated herein does not include purchased gas.
Sales volume of “Overseas subsidiary gas” stated herein are amounts of Japex (U.S.) Corp. and JAPEX Montney Ltd..

Sales volume （total）

Million M3

Of which, domestically produced gas

Sales volume decreased by 38 million M3 (-3%) vs FY2013
Net sales increased by ¥1.9 billion (+3%) vs FY2013-Rise in sales price-Increase in sales volume of overseas subsidiary gas(a)

(e)

12

Revised Full Year Estimates

Revised Estimated Crude Oil Sales in FY2014 (vs FY2013)
Sales volume : Thousand KL
Net sales : Million ￥FY2013

FY2014 Revised estimate (Feb. 2014)

Full (a)1Q-3Q(a)4Q (e)

Full (e)change(vs FY2013)

Sales volume

1,684

1,212

684

1,897+212

Net sales

88,52974,66643,904

118,570+30,041

Domestically produced
crude oil:

Sales volume

468

292

93

385(83)

Net sales

28,167

20,1806,528

26,708(1,460)Overseas subsidiary
crude oil:

Sales volume

5

17266

284+278

Net sales

290

954

17,665

18,619+18,329

Sales volume

349

257

86343(6)Net sales

9,694

8,277

2,674

10,951+1,256

Crude oil:

Breakdown of equity oil

Bitumen:Oil price and Exchange rate assumptions
JCC price

US$/bbl114.67109.91110.00109.93(4.74)

Exchange rate

JP¥/US$

81.71

97.92

100.0098.43+16.72

Bitumen price

CA$/bbl

50.71

53.93

44.53

51.58

+0.87

Exchange rate

JP¥/CA$

87.05

94.83

98.42

98.42

+11.37

Sales volume and Net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Royalty is excluded in the Net sales and price of Bitumen.
Sales volume and Net sales of “Overseas subsidiary crude oil” stated herein are amounts of Japex (U.S.) Corp., JAPEX Montney Ltd. and Japex Garraf Ltd., overseas
consolidated subsidiaries.

13Revised Full Year Estimates

Revised Estimates in FY2014 (vs FY2013)≪Causes of increase(+) or decrease(-) ≫FY2013

FY2014(a)(e)

Net sales

231,086

272,802+41,716Gross profit

59,01064,161+5,150Exploration expenses

13,086

10,251(2,835)

SG&A expenses

32,01732,369+352[ Million ￥]Operating income

13,906

21,540ChangeGross profit
Domestic crude oil and natural gas +¥3.2 billion+7,634Non-operating income(expenses)

14,176

16,543+2,366

Ordinary income

28,08238,083+10,000

Extraordinary income(losses)(34,522)(8,059)+26,464

Income taxes(6,927)

5,158+12,085

Minority interests in income

1,352777(576)

Net income(865)

24,089+24,95414+¥2.0 billion
Asset retirement obligations- ¥2.4 billion
Overseas consolidated subsidiaries +¥2.3 billion
LNG substitution expense

Exploration expenses
Overseas exploration
Domestic exploration+¥3.5 billion- ¥0.7 billion

Non-operating income (expenses)
Equity in earnings of affiliates+¥8.4 billion
Dividends income- ¥7.2 billion
Extraordinary income (losses)
Gain on transfer of mining rights - ¥2.8 billion
Decreased of an impairment loss on business assets
for production operation of Yufutsu oil & gas field *+¥29.0 billion* Please refer to the “Notice of Financial Forecast Revision andRecording of an Impairment Loss on Business Assets” released on
the same day of this material, February 7, 2014.