日時： 最終印刷日時：5/15/2007 1:22:00 PM

Consolidated Financial Results for the year ended March 31, 2007
May 11, 2007

Note: The following report is an English translation of the Japanese-language original.
Company name
Code number: INPEX Holdings Inc.
: 1605

Stock Exchange on which the Company is listed : Tokyo Stock Exchange
URL http://www.inpexhd.co.jp/

Representative: Naoki Kuroda, President

Contact person: Shuhei Miyamoto, General Manager, Corporate Communications Unit
TEL+81-3-5448-0205

Scheduled date of ordinary
general meeting of: June 26, 2007
shareholders
Scheduled date of filing: June 27, 2007
Financial report

Scheduled date of payment of cash dividends: June 27, 2007

(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for the year ended March 31, 2007 (April 1, 2006-March 31, 2007)(1) Consolidated operating results(The percentage expressions represent the changes from the previous fiscal year)
Operating income
Ordinary income
Net income

Net sales
For the year ended
March 31, 2007―％

Million yen―

559,077

Yen％

Million yen――

165,091%

Yen―

70,423.45％

Million yen

586,262

Net income as a percentage
Ordinary income as a Operating income as aof net assets excluding
percentage of total assets percentage of net sales
minority interests

Net income pershare—diluted

Net income pershare—basic
For the year ended
March 31, 2007％

Million yen

969,712

%

17.7

%

38.8

57.7

(Reference): Equity in earnings of affiliates: for the year ended March 31, 2007, ¥ 1,349 million
Note: Since consolidated financial results are prepared for the first time for the year ended March 31, 2007, consolidated financial results ofthe previous fiscal year and percentage expressions for the change from the previous fiscal year are not disclosed.

(2) Consolidated financial position
Total assets
As of March 31,
2007

Net assets excluding minority interests
as a percentage of total assets

Net assets

Million yen％

Million yen

1,608,106

Net assets excluding minority
interests per share

1,080,016

64.0

Yen

436,467.92(Reference): Net assets excluding minority interests: as of March 31, 2007, ¥ 1,028,894 million
Note: Since consolidated financial results are prepared for the first time for the year ended March 31, 2007, the consolidated financial
position at the end of the previous fiscal year is not disclosed.

(3) Consolidated cash flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents at
activities
activities
activities
end of the period
For the year ended
March 31, 2007
Note:

Million yen

231,981Million yen(209,243)

Million yen

13,793

Million yen

189,416Since consolidated financial results are prepared for the first time for the year ended March 31, 2007, the consolidated cash flows of theprevious fiscal year is not disclosed.

2. Dividends
Annual cash dividends per share
At 1st half end

At fiscal year end

Total

Total cash dividends(Annual)Payout ratio(Consolidated)

Cash dividends as apercentage of net assets(Consolidated)

Yen
Yen
Yen
Million yen%%
For the year ended
March 31, 2007
7,000.00
7,000.00
16,5019.9
1.8―
For the year ended
3,500.00
3,500.00
7,000.00
17.2――
March 31, 2008 (estimated)
Note: Since consolidated financial results are prepared for the first time for the year ended March 31, 2007, the dividends of the previous fiscal
year is not disclosed.

― 1 ―日時： 最終印刷日時：5/15/2007 1:22:00 PM

3. Estimated Consolidated Operating Results for the year ending March 31, 2008 (April 1, 2007-March 31, 2008)(The percentage expressions represent the changes from the corresponding period of previous fiscal year)
Net sales
For the six months ending
September 30, 2007
For the year ending March
31, 2008

Million yen

Operating income

Ordinary income

Million yen

Million yen

%

%

%

Net income

Net income per share

Million yen%

Yen

429,000(14.3)

208,000(30.3)

214,000(27.2)

52,000(19.6)

22,058.94

856,000(11.7)

414,000(25.9)

410,000(30.1)

96,000(41.9)

40,724.20

4. Others(1) Significant changes in scope of consolidation: No(2) Changes in accounting policies
1. Changes due to changes in accounting standard
2. Other changes

: No
: No

(3) Number of shares issued (Common stock)
1. Number of shares issued at the fiscal year end (including treasury stocks):
2. Number of treasury shares at the fiscal year end:

as of March 31, 2007; 2,358,410 shares
as of March 31, 2007;
1,089 shares

Note: Since shareholder of the special class share is entitled to the same rights as that for shareholders of common stock regarding dividends andthe distribution of residual property, the special class share is classified as common stock equivalent share.
Refer to page 23 “ Per share information” for the basis of calculation of consolidated net income per share.

(Reference) Non-Consolidated Financial Results for the year ended March 31, 2007 (April 3, 2006-March 31, 2007)(1) Operating results(The percentage expressions represent the changes from the previous fiscal year)
Operating revenues

For the year ended
March 31, 2007―

32,801
Net income pershare—basic

For the year ended
March 31, 2007

Operating income％

Million yen―

30,643

Net income

Ordinary income％

Million yen％

Million yen―

30,432％Million yen―

30,326

Net income pershare—diluted

Yen12,862.32

Yen―

Note : Since non-consolidated financial results are prepared for the first time for the year ended March 31, 2007, non-consolidated financial resultsof the previous fiscal year and percentage expressions for the change from the previous fiscal year are not disclosed.

(2) Financial position
Total assets
As of March 31,
2007

Million yen

822,786

Net assets

Net assets as a percentage of total
assets822,153

Net assets per share％

Million yen

99.9

Yen

348,766.27(Reference): Net assets: as of March 31, 2007, ¥ 822,153 million
Note: Since financial results are prepared for the first time for the year ended March 31, 2007, the financial position at the end of theprevious fiscal year is not disclosed.
*

The aforementioned forecasts of “3. Estimated Consolidated Operating Results for the year ending March 31, 2008” are based on
currently available information and contain many uncertainties. Changing business conditions including oil and gas price levels,
production and sales plans, projects development schedules, government regulations, financial conditions and regulationship with oil
and gas producing countries may cause actual results to differ from the above forecasts. Issues relating to the above forecasts arereferred to page 4 of the accompanying materials.

― 2 ―1 Results of Operations and Financial Position（1）Results for the year ended March 31, 2007
Effective April 3, 2006 the Company has been established as the joint holding company that owns INPEXCORPORATION and Teikoku Oil Co., Ltd., as wholly-owned subsidiaries. Financial results are not comparedwith the previous fiscal year since the Company started to compile the consolidated financial results from thisfiscal year
During this fiscal year, the overall Japanese economy has shown a steady recovery, bolstered by strong global
economic growth, driven by buoyant economies in the United States and China. This favorable situation boosted
export as well as capital investment in Japan. As a result, Japanese corporate earnings enjoyed solid growth,which prompted the improvement in consumer spending and the labor market.
First, global crude oil prices, an important factor that affects our group’s businesses, gathered momentum in thefirst half of the fiscal year. They continued strong by summer, due to an increase in demand for heating oil, during
the winter period in the United States. As the year proceeded, some other events also caused the prices to move
upwards. There were strong demand for oil from fast growing emerging economies, including China and India.
Increasing of uncertainty over the situation in the Middle East and a large amount of speculative funds flew into
the oil markets during this period, resulting in WTI (West Texas Intermediate) smashing its previous all-time highto US$78.40 per bbl mark in July. However, oil prices began to fall in September in the wake of rapidly easing
concerns over the tight supply situation, reflecting several factors including a slowdown in U.S. demand resulting
from the soaring oil prices. The damage from hurricanes in U.S. was far less than anticipated; this fact also
contributed to eliminate the anxieties on oil supply. WTI dropped sharply to US$55 by November, before
recovering to the US$60 level by the end of the year, supported by a reduction in supply, following the supply cuts
decision by OPEC and other news. Crude oil prices fell temporarily in January because of the mild winter, butthey rebounded in the following two months subsequent to cold snaps in February and international heightened
tensions. Consequently, nearby delivery WTI crude closed at US$65.87 at the end of the fiscal year. Meanwhile,
domestic crude oil and petroleum prices followed a similar pattern of global price movements, chalking up ourgroup’s average sales price for crude oil for the fiscal year at US$62.16 per bbl.
On the other hand, with regards to the foreign exchange market, which also has a large impact on our businessperformance, the U.S. dollar began to trade at the upper end of the 117 yen level for the year. Then, the currency
began to depreciate sharply following the special statement at the Washington G7 meeting in April. Member
countries agreed to embark on the correction of global imbalance – international income and expenditure
disproportion and U.S. current account deficits. The U.S. dollar continued to decline against the yen, marking
below the 110 yen level at one time in May. With a rise in market expectations towards higher interest rates by
U.S. Federal Reserve Board, however, the currency moved upward against the yen. This trend accelerated bywhat is called “yen carry trades”, trading that benefits from U.S. and Japanese interest rates spread, boosting the
U.S. dollar to reach the 122 yen level in January. Following that, the U.S. dollar lost momentum again and slippedto the lower end of the 115 yen level, before edging up to nearly the same level as that at the beginning of the year.
As a result, the U.S. dollar middle rate (TTM) at the end of the fiscal year came at ¥118.09, down ¥0.62 from theprevious year end. The U.S. dollar average exchange rate for our group’s sales was ¥116.90.
In these business circumstances, net sales for the year ended March 31, 2007 was ¥969,712 million mainly due tothe increase of crude oil and natural gas prices, an increase in sales volume of crude oil and natural gas, and theaverage exchange rate of Japanese yen against U.S. dollar fell for sales through the year ended March 31, 2007.
Net sales of crude oil and natural gas amounted to ¥607,400 million and ¥332,937 million, respectively.
Cost of sales for the year ended March 31, 2007 was ¥343,794 million. Exploration expenses were ¥17,688
million mainly due to the exploration activities in Asia-Oceania area. Selling, general and administrative
expenses were ¥49,152 million, and operating income was ¥559,077 million.
Other income was ¥60,079 million mainly due to the transfer of a part of interest in WA-285-P in the State ofWestern Australia, and other expenses were ¥32,893 million. As a result, ordinary income for the year ended
March 31, 2007 was ¥586,262 million.
Income taxes-current was ¥432,894 million. As a result, net income for the year ended March 31, 2007 was¥165,091 million―3―With respect to segment information, the oil and natural gas business combined accounts for more than 90% of
the aggregate sales, operating income and asset of all segments. Therefore, the business segment information has
been omitted.
On a next fiscal year outlook, consolidated net sales for the six months ending September 30, 2007 are expected
to be ¥4,290 hundred million, to decrease ¥718 hundred million (14.3%) compared with for the six months ended
September 30, 2006, net sales for the year ending March 31, 2008 are expected to be ¥8,560 hundred million, todecrease ¥1,137 hundred million (11.7%) compared with for the year ended March 31, 2007.
Operating income for the six months ending September 30, 2007 are expected to be ¥2,080 hundred million, todecrease ¥905 hundred million (30.3%) compared with for the six months ended September 30, 2006, operating
income for the year ending March 31, 2008 are expected to be ¥4,140 hundred million to decrease ¥1,451
hundred million (25.9%) compared with for the year ended March 31, 2007.
Ordinary income for the six months ending September 30, 2007 are expected to be ¥2,140 hundred million, todecrease ¥800 hundred million (27.2%) compared with for the six months ended September 30, 2006, ordinary
income for the year ending March 31, 2008 are expected to be ¥4,100 hundred million, to decrease ¥1,763
hundred million (30.1%) compared with for the year ended March 31, 2007, and net income for the six months
ending September 30, 2007 are expected to be ¥520 hundred million, to decrease ¥127 hundred million (19.6%)
compared with for the six months ended September 30, 2006, net income for the year ending March 31, 2008 are
expected to be ¥960 hundred million, to decrease ¥691 hundred million (41.9%) compared with for the year
ended March 31, 2007.
The reason both sales and income will decrease is mainly due to expecting the decrease in crude oil and natural
gas prices and the rise in the exchange rate of the Japanese yen against the U.S. dollar compared with this fiscal
year.
In these estimates, the crude oil price is assumed to be US$55 per barrel (for Brent crude) through the year ending
March 31, 2008, with the exchange rate of the Japanese yen against the U.S. dollar at ¥110 through the year
ending March 31, 2008.
（2）Financial Position
Consolidated total assets as of March 31, 2007 were ¥1,608,106 million.
Current assets were ¥474,123 million, and fixed assets were ¥1,133,982 million. Total liabilities were ¥528,090
million, net assets were ¥1,080,016 million, and minority interests in net assets were ¥51,121 million.
As for cash flows for the year ended March 31, 2007, net cash provided by operating activities was ¥231,981
million. Meanwhile, net cash used in investing activities was ¥209,243 million mainly due to purchase ofinvestment securities and increase in development expenditure for ACG Oil Fields, Offshore Mahakam Blockand Kashagan Oil Field, etc. Net cash provided by financing activities was ¥13,793 million. Cash and cash
equivalents at the end of the year ended March 31, 2007 totaled ¥189,416 million reflecting above net increase of¥38,273 million from ¥151,143 million at the beginning of the period.
(3) Dividend Policy and dividend for the year ended March 31, 2007 and for the year ending March 31, 2008
In order to secure a stable supply of petroleum and natural gas resources efficiently, the Company aims to expand
its operating base. To this end, we are reinforcing investments in exploration and development in Japan andoverseas, as well as in maintenance and expansion of the supply infrastructure. The robust financial base of theCompany is crucial for maintaining this level of investment. Therefore, our basic policy is to maximize corporate
value through ongoing maintenance and enlargement of our reserves and production of petroleum and natural gas,
while paying out cash dividends as direct compensation to shareholders, in light of the medium- to long-term
prospects for the Company.
With the enactment of the Corporation Law, restrictions on the number of times for paying dividends have been
eliminated. However, currently, we do not plan to pay dividends quarterly.
Dividend for the year ended March 31, 2007 is planned to be ¥7,000 per share as year-end dividend.
Dividends for the year ending March 31, 2008 are planned to be ¥3,500 per share as mid-term dividend and¥3,500 per share as year-end dividend, thus totaling ¥7,000 per share for the year.

―4―2 Overview of the INPEX Group
Skip this item due to no material change from the contents of the semi-annual report of recent date.

3 Management Policy
Skip this item due to no material change from the contents of the semi-annual earnings report of recent
date.

― 5 ―

6ファイル名:④a連結BS

更新日時:5/10/2007 8:08:00 PM

印刷日時:07/05/15 13:23

4 Consolidated financial statements(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2007

Accounts

Amounts

Ratio％(Assets)
ⅠCurrent assets
1 Cash and deposits

194,278

2 Accounts receivable-trade81,954

3 Marketable securities

55,586

4 Inventories

13,2545 Deferred tax assets

17,2426 Accounts receivable-other

81,688

7 Other

30,129Less allowance for doubtful accounts(11)

Total current assets

474,123

29.5

Ⅱ Fixed assets
1Tangible fixed assets*1,3,4,5(1) Buildings and structures

103,091(2) Wells

17,597(3) Machinery, equipment and vehicles

44,356(4) Land

28,310(5) Construction in progress

22,505(6) Other

3,366

Total tangible fixed assets
2 Intangible assets

219,227

13.6*4(1) Goodwill

132,105(2) Exploration and development rights

127,110(3) Mining rights

4,364(4) Other

2,240

Total intangible assets

265,821

16.5

3 Investments and other assets(1) Investment securities*2,3

354,851(2) Long-term loans receivable

3,388(3) Recoverable accounts under production sharing

319,149(4) Other

34,879Less allowance for doubtful accounts
Less allowance for recoverable accounts under
production sharing
Less allowance for investments in exploration(1,869)(51,190)(10,273)

Total investments and other assets

648,934

40.4

Total fixed assets

1,133,982

70.5

Total assets

1,608,106

100.0

― 6 ―

7ファイル名:④a連結BS

更新日時:5/10/2007 8:08:00 PM

印刷日時:07/05/15 13:23(Millions of yen)
As of March 31, 2007

Accounts

Amounts

Ratio％(Liabilities)
ⅠCurrent liabilities
1 Accounts payable-trade
2 Short-term loans

21,793*350,6493 Income taxes payable
4 Accounts payable-other

85,143*3

88,7685 Provision for exploration projects

6,899

6 Accrued bonuses to officers

193

7 Other

12,799Total current liabilities

266,247

16.5

ⅡLong-term liabilities
1 Long-term debt

*3

198,320

2 Deferred tax liabilities

38,9943 Accrued retirement benefits to employees

8,371

4 Accrued retirement benefits to officers
5 Liabilities for site restoration anddecommissioning costs
6 Liabilities for losses on development activities

1,712
11,9301,964

7 Accrued special repair and maintenance179

8 Other370*3

Total long-term liabilities

261,843

16.3

Total liabilities

528,090

32.8(Net assets)
ⅠShareholders’ equity
1 Common stock

30,0001.9

2 Capital surplus

418,491

26.0

3 Retained earnings

570,12035.5

4 Treasury stock(1,108)(0.1)

1,017,503

63.3

9,348

0.6

Total shareholders’ equity
ⅡValuation, translation adjustments and others
1 Unrealized holding gain on securities
2 Unrealized gain from hedging instruments
3 Translation adjustments
Total valuation, translation adjustments and others

17

0.0

2,025

0.1

11,391

0.7

ⅢMinority interests

51,121

3.2

Total net assets

1,080,016

67.2

Total liabilities and net assets

1,608,106

100.0

― 7 ―

(2) Consolidated statement of income(Millions of yen)
For the year ended March 31, 2007

Accounts

Amounts

Ratio％

ⅠNet sales

969,712

100.0

ⅡCost of sales

343,79435.5

Gross profit

625,91864.5

17,6881.8

49,1525.0

559,077

57.7

60,0796.1

32,893

3.4

586,26260.4

586,26260.4

413,239

42.6

7,932

0.8

165,091

17.0

ⅢExploration expenses
1 Exploration expenses

17,7802 Exploration subsidies(91)

ⅣSelling, general and administrative expenses*1,2Operating income
ⅤOther income
1 Interest income

12,8432 Dividend income

2,291

3 Equity in earnings of affiliates

1,349

4 Gain on transfer of mining rights

33,5335 Foreign exchange gain

5,738

6 Other

4,322

Ⅵ Other expenses
1 Interest expense
2 Provision for allowance for recoverable accounts
under production sharing
3 Provision for exploration projects

12,3894 Other

11,355

6,176
2,973

Ordinary income
Income before income taxes and minority interests
Income taxes-current

432,894

Income taxes-deferred(19,655)

Minority interests
Net income― 8 ―更新日時:5/11/2007 11:42:00 AM

ファイル名:④c2連結SS

印刷日時:07/05/15 13:24(3）Consolidated statement of changes in net assets
For the year ended March 31, 2007
（Millions of yen）
Shareholders’ equity

Balance as of March 31, 2006
Changes during the period
Increase (decrease) due to joint
stock transfer
Cash dividends paid
Bonuses to officers
Net income
Purchase of treasury stock
Disposal of treasury stock
Other changes in items otherthan those in shareholders’equity (net)Total changes during the period
Balance as of March 31, 2007

Common stock

Capital surplus

Retained earnings

Treasury stock

―

―

―

―

Total
shareholders’equity―30,000415,892

415,734(19,641)

841,985(1,724)
20,257(10,559)(146)
165,091(1,724)22,856(1,108)(1,108)1,017,503
1,017,503

Unrealized
Total valuation, Minority interests
Unrealized gain
holding gain
Translationtranslationfrom hedging(loss) on
adjustments adjustments andinstruments
securities
othersTotal net assets(10,559)(146)
165,091
2,598

30,00030,000418,491
418,491

570,120
570,120

Valuation, translation adjustments and others

Balance as of March 31, 2006
―
―
―
―
―
―
Changes during the period
Increase (decrease) due to joint(5,723)
1,117(4,605)39,921
877,300
stock transfer
Cash dividends paid
(10,559)
Bonuses to officers(146)
Net income
165,091
Purchase of treasury stock(1,724)
Disposal of treasury stock
22,856
Other changes in items otherthan those in shareholders’
15,071
17
907
15,997
11,20027,197
equity (net)Total changes during the period
9,348
17
2,025
11,391
51,121
1,080,016
Balance as of March 31, 2007
9,348
17
2,025
11,391
51,121
1,080,016
Note: Since the Company was established on April 3 ,2006 through the stock transfer, cash dividends paid and Bonuses to
officers above represent amounts which were resolved on June 27, 2006 at the ordinary general meeting of shareholders of
INPEX CORPRATION, which became wholly-owned subsidiary of the Company.

―9―(4) Consolidated statement of cash flows(Millions of yen)Accounts

For the year ended
March 31, 2007
Amounts

ⅠCash flows from operating activities
Income before income taxes and minority interests

586,262

Depreciation and amortization

30,599Amortization of goodwill
Provision for allowance for recoverable accounts
under production sharing
Provision for exploration projects
Provision for accrued retirement benefits toemployee
Provision for site restoration and decommissioning
costs
Other provisions

6,977
6,080
3,038
845
1,214
1,376

Interest and dividend income(15,134)

Interest expense

12,389Foreign exchange gain

(1,652)Equity in earnings of affiliates(1,349)Gain on transfer of mining rights(33,533)

Loss on the sale of investment securities

2,613

Accounts receivable-trade
Recovery of recoverable accounts under production
sharing (capital expenditure)
Recoverable accounts under production sharing(operating expenditures)
Inventories(10,385)
105,949(18,955)(8,085)

Accounts payable-trade

(879)

Other

(3,810)Subtotal

663,561Interest and dividends received

20,559Interest paid

(11,993)

Income taxes paid

(440,146)

Net cash provided by operating activities

231,981― 10 ―

(Millions of yen)Accounts

For the year ended
March 31, 2007
Amounts

ⅡCash flows from investing activities
Increase in time deposits(17,078)

Decrease in time deposits

2,797

Purchase of marketable securities(5,140)

Proceeds from sales of marketable securities

23,643Purchase of tangible fixed assets(37,844)

Proceeds from sales of tangible fixed assets

955

Purchase of intangible assets(1,778)Purchase of investment securities(109,823)

Proceeds from sales of investment securities
Investment in recoverable accounts under production
sharing (capital expenditures)
Increase in short-term loans receivable

43,609(111,313)(6,523)Long-term loans made(832)

Collection of long-term loans receivable

888

Proceeds from transfer of mining rights

6,707

Other

2,490

Net cash used in investing activities(209,243)

Ⅲ Cash flows from financing activities
Decrease in short-term loans(120)

Proceeds from long-term debt

30,083

Repayment of long-term debt

(38,661)

Proceeds from minority interests for additional shares

3,606

Purchase of treasury stock(1,169)Proceeds from sales of treasury stock

22,397

Cash dividends paid

(10,791)

Dividends paid to minority shareholders(81)

Stock transfer payment(867)

Restricted cash deposit

9,400

Net cash provided by financing activities

13,793

Ⅳ Effect of exchange rate changes on cash and cash
equivalents
Ⅴ Net increase in cash and cash equivalents

38,273

Ⅵ Cash and cash equivalents at beginning of the period

151,143

Ⅶ Cash and cash equivalents at end of the period

189,416

1,741― 11 ―

更新日時:5/11/2007 4:05:00 PM

ファイル名:④d連結会計方針

印刷日時:07/05/15 13:26

5) Basic of Presenting Consolidated Financial Statements
For the year ended
March 31, 2007
1.Scope of consolidation
Number of consolidated subsidiaries: 60
Names of major subsidiaries;
INPEX CORPORATION, Teikoku Oil Co., Ltd., Japan Oil Development Co., Ltd., INPEXNatuna, Ltd., INPEX Sahul, Ltd., Teikoku Oil D.R. Congo, Co., Ltd., INPEX Southwest
Caspian Sea, Ltd., INPEX North Caspian Sea, Ltd., INPEX Browse, Ltd., INPEX Masela, Ltd.
During this period:
Number of new companies included in consolidated subsidiaries:

5

Details for the above changes:
INPEX Offshore Northeast Java, Ltd., Teikoku Oil and Gas Venezuela, C. A., and 3 othercompanies have been included due to establishment of the companies.
Names of major unconsolidated subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C. V.
(Reason for exclusion from consolidation)
Those companies are not consolidated because their total assets, total net sales, total net income(the equity portion) and total retained earnings (the equity portion) do not have significant
impact on the consolidated financial statements.
2. Application of equity method
Unconsolidated subsidiary accounted for by the equity method: None
Number of affiliates accounted for by the equity method:

13

Names of major affiliates:
MI Berau B.V., Angola Japan Oil Co., Ltd., Japan Ohanet Oil & Gas Co., Ltd., ALBACORAJAPAO PETROLEO LTDA, INPEX Offshore North Campos, Ltd.

During this fiscal year:
Number of new companies included in affiliates accounted for by the equity method:
Number of companies excluded from affiliates accounted for by the equity method:1
1

Details for the above changes:(1) Petroguarico, S.A. has been included due to establishment of the company(2) Dai-ichi Petroleum Development Co., Ltd. has been excluded due to completion ofliquidation
Names of major affiliates not accounted for by the equity method:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C.V., Telnite Co., Ltd., Tangguh
project management Co., Ltd.
(Reason for not applying the equity method)
Subsidiaries and affiliates are not accounted for by the equity method because their total net
income (the equity portion) and total retained earnings (the equity portion) do not havesignificant impact on the consolidated financial statements.
Procedures for application of the equity method:
Regarding affiliates accounted for by the equity method having a different closing date from theconsolidated closing date, the Company used the financial statements of each affiliate prepared
as of their closing date. For certain affiliates, however, the Company used financial statements
prepared for consolidation purposes as of the consolidated closing date.

― 12 ―

更新日時:5/11/2007 4:05:00 PM

ファイル名:④d連結会計方針

印刷日時:07/05/15 13:26

For the year ended
March 31, 2007
3. Closing dates for the fiscal year of consolidated subsidiaries
For the 39 companies for which the closing date differed from the consolidated closing date,including, but not limited to, INPEX Sahul, Ltd., INPEX Browse, Ltd., and INPEX Masela, Ltd.,
we used the financial statements for the year ended December 31. However, the necessary
adjustments have been made to the financial statements of those companies to reflect any
significant transactions made between the Company’s closing date and those of the consolidated
subsidiaries.
For the 11 companies including, but not limited, Japan Oil Development, Co., Ltd., Teikoku Oil
D.R. Congo, Co., Ltd., INPEX Southwest Caspian Sea, Ltd., and INPEX North Caspian Sea,
Ltd., we used financial statements for the year ended the consolidated closing date even though
their closing date is December 31.
4. Accounting policies
1) Valuation method for significant assets(a) Securities
Other securities
With a determinable market value
Other securities with a determinable market value are stated at fair value with any changes in
unrealized holding gain or loss, net of the applicable income taxes, included directly in net
assets. Cost of securities sold is determined by the moving-average method.
Without a determinable market value
Other securities without a determinable market value are stated at cost determined by themoving-average method.
(b) Inventories
Products
Carried mainly at the lower of cost or market, cost being determined by the movingaverage method
Supplies
Carried mainly at cost, determined by the moving-average method
Work in process
Carried at cost, determined by the individual cost basis― 13 ―

更新日時:5/11/2007 4:05:00 PM

ファイル名:④d連結会計方針

印刷日時:07/05/15 13:26

For the year ended
March 31, 2007
2) Depreciation method of significant depreciable assets(a) Tangible fixed assets
Depreciation of mining facilities is mainly computed by the unit-of-production method. For
other tangible fixed assets, straight-line method of depreciation is applied.
Useful lives of significant fixed assets are as follows:
Buildings and structures: 2-60 years
Wells: 3 years
Machinery, equipment and vehicles: 2-22 years
Wells and certain machinery (offshore platform and related facilities) are depreciated to the
expected residual value (zero).
(b) Intangible assets
Exploration and development rights
Exploration and development rights at the exploration stage are fully amortized in the
consolidated fiscal year. Such rights which are at the production stage are amortized by theunit-of-production method.
Mining rights
Mining rights are mainly amortized by the unit-of-production method.
Other
Other intangible assets are mainly amortized by the straight-line method.
Software for internal use is being amortized over five years.
3) Basis for significant allowances(a) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at an amount determined based on the historicalexperience of bad debt with respect to ordinary receivables, plus an estimate of uncollectible
amounts determined by reference to specific doubtful receivables from customers which areexperiencing financial difficulties.
(b) Allowance for recoverable accounts under production sharing
Allowance for recoverable accounts under production sharing is provided for probable losseson specific investments made under production sharing contracts.
(c) Allowance for investments in exploration
Allowance for investments in exploration is provided for future potential losses oninvestments in exploration companies at an estimated amount based on the net assets of theinvestees.
(d) Provision for exploration projects
Provision for exploration projects is provided for future expenditures of consolidated
subsidiaries at exploration stage based on schedule of investments in exploration.
(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at expected payment amount for the year ended
March 31, 2007.
(f) Accrued retirement benefits to employees
Accrued retirement benefits to employees are provided at the amount calculated based on the
expected retirement benefit obligation and the estimated value of pension plan assets at the endof this period. Because certain subsidiaries are classified as small enterprises, we employ asimplified method (at the amount which would be required to be paid if all active employees
voluntarily terminated their employment as of the balance sheet date) for the calculation of theretirement benefit obligation of the subsidiaries.
Actuarial gains and losses are charged or credited to income as incurred.
(g) Accrued retirement benefits to officers
Accrued retirement benefits to officers are stated at the amount which would be required tobe paid as if all officers voluntarily terminated their services as of the balance sheet datebased on their respective internal rules.
(h) Liabilities for site restoration and decommissioning costs
Liabilities for site restoration and decommissioning costs are provided for expected future
costs for site restoration and decommissioning.
(i) Liabilities for losses on development activities
Liabilities for losses on development activities are provided for provable losses on oil andnatural gas development activities individually estimated for each project.
(j) Accrued special repair and maintenanceAccrued special repair and maintenance are provided for planned major repair andmaintenance activities on tanks in certain subsidiaries at the amount being accumulated
through the next activity.

― 14 ―

更新日時:5/11/2007 4:05:00 PM

ファイル名:④d連結会計方針

印刷日時:07/05/15 13:26

For the year ended
March 31, 2007
4) Translation of consolidated subsidiaries’ significant assets and liabilities denominated inforeign currencies into yen in preparation of the consolidated financial statements
Monetary assets and liabilities denominated in foreign currencies are translated into yen at
the exchange rates prevailing at the balance sheet date. The resulting exchange gain or loss
is credited or charged to income.
The revenue and expense accounts of the overseas subsidiaries are translated into yen at
the average rates of exchange during the period. The balance sheet accounts are translated
into yen at the rates of exchange in effect at the balance sheet date. Translation differences
are presented as a component of translation adjustments and minority interests.
5) Accounting for important leases
Non-cancelable finance leases are primarily accounted for as operating leases except thatlease agreements which stipulate the transfer of ownership of the leased assets to thelessee are accounted for as finance leases.
6) Accounting for major hedge transactions(a) Hedge accounting
Simplified accounting method is applied to interest rate swaps. For certain equity
accounted companies, deferred hedge accounting is adopted.
(b) Hedging instruments and hedged items
Hedge instruments: Interest rate swap transactions
Hedged items: Interest payments on borrowings(c) Hedging policy
The nominal amount of the derivative transaction is limited to within the scope of actual
demand, and the Company does not engage in speculative derivative transactions.
(d) Hedge effectiveness assessment method
Since simplified accounting method is applied, the Company does not perform hedge
effectiveness assessment.
7) Other items important to the preparation of the consolidated financial statements(a) Consumption tax
Transactions subject to the consumption tax are recorded at amounts exclusive of theconsumption tax.
(b) Recoverable accounts under production sharing
Cash investments made by the Company during exploration, development andproduction phases under a production sharing contract and a service contract (buybackarrangement) are recorded as “Recoverable accounts under production sharing” solong as they are recoverable under the terms of the relevant contract. When the
Company receives the natural gas and crude oil in accordance with the contract, anamount corresponding to the purchase costs of the products (i.e., a cost recovery
portion of the investments) is released from this account.
5. Valuation of assets and liabilities of consolidated subsidiaries
The assets and liabilities of consolidated subsidiaries are valued at their fair values. However,those whose valuation difference is not material are valued at their carrying amounts.
6. Amortization of Goodwill
Goodwill is amortized using a straight-line method over 20 years.
7. Scope of cash and cash equivalents in consolidated statement of cash flow
Cash (cash and cash equivalents) in the consolidated statement of cash flow consisted of
cash on hand, cash in banks which can be withdrawn on demand, and short-term
investments with a maturity of three months or less when purchased which can easily beconverted to cash and are subject to little risk of change in value.

― 15 ―

更新日時:5/11/2007 10:32:00 AM

ファイル名:④e連結BSPLCFSS注記

印刷日時:07/05/15 13:27

Notes(Consolidated balance sheet)
As of March 31, 2007
*1 Accumulated depreciation
Accumulated depreciation of tangible fixed assets is ¥454,161 million.
*2 The Company has the following investments in subsidiaries and affiliates:
Investment securities (equities): ¥29,084 million
Other (investments): ¥924 million*3 Assets provided as collateral and collateral-backed debt are as follows(Collateralized Assets)

Millions of yen

Buildings and structures
Wells
Machinery, equipments and vehicles

2,180
36
8,748

(1,652)(36)(8,748)Land
Others (tangible fixed assets)
Investment securities

1,826
0
9,998

(660)
(0)
(－)

22,790(11,097)

95
5,480
15,272
16(－)(4,956)(14,525)(－)

20,864(19,481)

Total(Secured debt)
Short-term loans
Accounts payable-other
Long-term debt
Others (long-term liabilities)
Total*Amounts in parenthesis () above represent foundation collateral and liabilities.
In addition, investment securities of ¥7,208 million are pledged as collateral for the BTC pipeline
project financing.
*4 Accumulated advanced depreciation deducted from acquisition costs of fixed assets related tocontribution and others was ¥1,374 million for building and structures, ¥291 million for machinery,equipment and vehicles, and ¥1 million for others (intangible assets).
*5 Accumulated advanced depreciation deducted from acquisition costs of tangible fixed assets related togain on insurance policies was ¥2 million for others (tangible fixed assets).
6 Contingent liabilities
The Company and its consolidated subsidiaries are contingently liable as guarantors of indebtedness ofthe following companies:

Tangguh Trustee*
Sakhalin Oil and Gas Development Co., Ltd.
Japan Ohanet Oil & Gas Co., Ltd.

Millions of yen
13,72911,845
1,759

ALBACORA JAPAO PETROLEO LIMITADA

1,569

Sakata Natural Gas Co., Ltd.
Nippon Oil Exploration (Malaysia) Limited.
Nippon Oil Exploration (Sarawak) Limited.
Employees (housing loans)

1,013
770
286
537

Total
*Debt for investment funds of Tangguh LNG project through MI Berau B. V.

31,511

In addition, INPEX BTC Pipeline, Ltd., a consolidated subsidiary, is contingently liable as guarantor ofindebtedness of BTC Pipeline Project Finance in the amount of ¥7,252 million until BTC Pipeline
project completion (guarantee for completion).

― 16 ―

更新日時:5/11/2007 10:32:00 AM

ファイル名:④e連結BSPLCFSS注記

印刷日時:07/05/15 13:27(Consolidated statement of income)For the year ended March 31, 2007
*1. Major accounts included in selling, general and administrative expenses are as follows;

Personnel expenses(Including provision for accrued retirement benefits to officers(Including provision for accrued retirement benefits to employees(Including provision for accrued bonuses to officers
Freight expenses
Depreciation and amortization
Amortization of goodwill

Millions of yen
11,082
339)
451)
193)
8,671
12,8676,977*2. Research and development expenses included in general and administrative expenses: ¥300 million― 17 ―

更新日時:5/11/2007 10:32:00 AM

ファイル名:④e連結BSPLCFSS注記

印刷日時:07/05/15 13:27(Consolidated statement of changes in net assets)
For the year ended March 31, 2007
1. Type and number of shares issued and outstanding and treasury stock
Balance as ofMarch 31, 2006

Increase(Shares)

Decrease

Balance as ofMarch 31, 2007

Number of shares
Common stock
2,358,409
2,358,409――
Special class share
1
1
―
―
Total
2,358,410
2,358,410――
Treasury stock
Common stock
23,672
22,582
1,089
―
Total
23,672
22,582
1,089―
Notes 1: Increase in common stock by 2,358,409 shares and special class by 1 share are due to the establishment of theCompany through stock transfers.
2: Increase in treasury stock of common stock by 23,672 shares is due to increase in consolidated subsidiarys’
stock through stock transfer by 22,001 shares and purchase of 1,670 shares of odd lot stock.
3: Decrease in treasury stock of common stock by 22,582 shares is due to decrease in sales of consolidated
subsidiary’s common stocks of 22,001 shares and decrease in sales of 581 odd lot shares.

2. Share subscription rights
None

3. Dividends(1) Cash dividends paid
Resolution

Type ofshare

Cash dividends paid
(Millions of yen)

Dividends per
share
(Yen)

Entitlement date

Effective dateOrdinary general
Common10,5595,500
March 31, 2006
June 27, 2006
meeting ofstock
shareholders held on
Special05,500March 31, 2006
June 27, 2006
June 27, 2006
class share
Note: Since the Company was established on April 3, 2006 through the stock transfer, cash dividends paid above
represent amounts which were resolved on June 27, 2006 at ordinary general shareholders’ meeting of INPEXCORPORATION, which became a wholly-owned subsidiary of the Company.
(2) Dividends, of which the entitlement date was in the year ended March 31, 2007, and whose effective date will
be in the next fiscal year
Cash dividends
Dividends
Type of
Source of
Resolution
Entitlement date Effective datepaid
per share
share
dividends(Millions of yen)
(Yen)
Ordinary general
CommonRetained
16,5017,000 March 31, 2007
June 27, 2007
meeting ofstock
earnings
shareholders held on
SpecialRetained
07,000 March 31, 2007
June 27, 2007
June 26, 2007
class shareearnings― 18 ―

更新日時:5/11/2007 10:32:00 AM

ファイル名:④e連結BSPLCFSS注記(Consolidated statement of cash flows)

For the year ended
March 31, 2007
Cash and cash equivalents at the end of the period are reconciled to the account reported in the
consolidated balance sheet as follows:
Millions of yen
Cash and deposits
Time deposits for more than three months and others
Marketable securities (commercial paper, others)
Other current assets (short-term bonds with repurchase agreements)
Cash and cash equivalents― 19 ―

194,278(16,827)
8,968
2,997
189,416

印刷日時:07/05/15 13:27

更新日時:5/10/2007 8:01:00 PM

ファイル名:④fセグメント

印刷日時:07/05/15 13:28(Segment information)
1. Business segment information
For the year ended March 31, 2007 (April 1, 2006 through March 31, 2007)
Segment information by business has been omitted because the crude oil and natural gas business accounts for more than 90% of
total sales, operating income and asset.

2. Geographical segment information
For the year ended March 31, 2007 (April 1, 2006 through March 31, 2007)(Millions of yen)
Middle East Africa

Americas118,617

386,009

220

―

―

―

77,322

387,542

118,617

Operating expenses

54,306145,637

Operating income (loss)

23,016
197,404

I Net sales and operating income
Net sales(1) Sales to third parties(2) Intercompany sales andtransfers between
segments
Total

II Assets
Notes:Japan

Asia Oceania

NIS

Eliminations
and other

Consolidated

77,322

387,542969,712―

969,712

0

―

0

(0)

―

386,009220

969,713(0)969,71282,995

119,282

1,659

403,882

6,753

410,635

241,905

35,621

266,726(1,438)565,831(6,753)559,077

322,115

320,574

254,071

17,775

1,111,942

496,163

1,608,106

Total

1. Countries and areas are segmented based on their geographic proximity and their mutual operational relationships.
2. Major countries and areas that belong to segments are as follows:(1) Asia - Oceania････････Indonesia, Australia, East Timor, Vietnam(2) NIS････････････････Azerbaijan, Kazakhstan(3) Middle East - Africa･･･UAE, D.R. Congo, Iran, Libya, Egypt, Algeria(4) Americas････････････Venezuela, Ecuador, USA
3. Unallocated operating expenses included in “Eliminations and other” of ¥9,793 million under the operating expenses aremainly amortization of goodwill and general administrative expenses.
4. Of the figure for assets, ¥496,371 million included in “Eliminations and other” are mainly goodwill, cash and deposit,
marketable securities and investment securities concerned with the administrative divisions.

3. Overseas sales
For the year ended March 31, 2007 (April 1, 2006 through March 31, 2007)
Asia - Oceania
I.

Overseas sales (Millions of yen)

319,548

Other

Total

53,556

II. Consolidated sales (Millions of yen)969,712

III. Overseas sales as a percentage of consolidated sales (%)
Notes:

373,104

33.0

5.5

38.5

1. Countries and areas are segmented based on their geographic proximity.
2. Major countries and areas that belong to segments other than Japan are as follows:(1) Asia-Oceania･････････South Korea, Taiwan, Indonesia, Singapore, Thailand, China, Malaysia,
Philippines, Australia(2) Other･･･････････････USA, Italy
3. Overseas sales consist of export sales of the Company and its domestic consolidated companies and sales (other thanexports to Japan) of its foreign consolidated subsidiaries. Overseas sales are totaled up based on final destination.

― 20 ―

(Business integration through purchase accounting method)
For the year ended March 31, 2007
The Company has been established as the joint holding company that owns INPEX CORPORATION (hereafter“INPEX”) and Teikoku Oil Co., Ltd., (hereafter “Teikoku”) as wholly-owned subsidiaries, according to businessintegration by stock transfer on April 3, 2006. The purchase accounting method was applied for this transaction.
INPEX was treated as an acquiring company and Teikoku as acquired company based on ratio of voting rights.
1. Name and main business of acquired company(1) Name of acquired company
Teikoku Oil Co., Ltd.
(2) Main business of acquired company
Exploration, development, production and distribution of crude oil and natural gas(3) Major purpose of integration
To establish a firm position in the global market, by establishing a well-balanced asset portfolio, reinforcing asolid financial base, and concentrating technological capabilities for resource development(4) Date of integration
April 3, 2006
(5) Legal formalities of business integration
Establishment of the joint holding company through a stock transfer(6) Name after integration
INPEX Holdings Inc.
(7) Acquired ratio of the voting rights
100%
2. Period of acquired company’s financial results included in the consolidated financial statements
From April 1, 2006 to March 31, 2007
3. Acquisition cost and details of acquired company
Acquisition cost of acquired company is ¥355,756 million. Details of acquisition cost consists of the fair value ofacquiring company’s stock in amount of ¥354,897 million that deemed to be issued to acquired company’s
shareholders and expenses of the acquisition in amount of ¥859 million.
4. Stock transfer ratio for the acquisition and other related information(1) Stock transfer ratio
INPEX
Teikoku
Stock transfer ratio
10.00144(2) Calculation of the stock transfer ratio
INPEX appointed J.P. Morgan Securities Asia Pte. Limited and Teikoku appointed Goldman Sachs (Japan) Ltd.
as their financial advisors in relation to this transaction. The financial advisors analyzed the share pricemovements of the both companies, discounted cash flow (DCF) / net asset value (NAV) analysis andcontribution analysis etc. in considering the stock transfer ratio. The stock transfer ratio was determinedthrough discussion and negotiation by both companies taking into consideration the analysis and advice of theirfinancial advisors and other various factors.
(3) Share allocation and estimated value
Based on the above stock transfer ratio, 438,577.82 shares were allotted to Teikoku’s shareholders since
0.00144 share of the Company’s common share was allotted in exchange for 1 share of Teikoku’s commonshare. Because the Company’s stock did not exist on the date of public announcement on the stock transfer
agreement, the Company’s stock was valuated at ¥809,200 which represents average stock price of acquiring
company for the 5 days commencing on 5 days before main terms and conditions of business integration wereagreed with and announced to public.

― 21 ―

5. Goodwill(1)Amount of goodwill¥139,058 million(2)Reason for goodwill revealed
The investment balance between acquisition cost of acquired company and amount distributed to identifiable
assets and liabilities revealed by overall value that was valuated mining rights, production assets, development
and operating technology, sales-use assets such as pipelines network, buyers, suppliers, and other factors totally.
(3)Method and period of amortization
Straight-line method over 20 years
6. Acquired assets and liabilities on the date of integration

Current assets
Fixed assets
Total assets
Current liabilities
Long-term liabilities
Total liabilities(Reference); Minority interests― 22 ―(Millions of yen)
65,864
397,885
463,750
28,156
77,519105,675
2,318

更新日時:5/10/2007 8:02:00 PM

ファイル名:④i連結一株 開示の省略

印刷日時:07/05/15 14:47(Per share information)
For the year ended March 31, 2007
Net assets excluding minority interests per share¥436,467.92

Net income per share¥70,423.45

Notes:

1. Diluted net income per share is not presented because there are no dilutive potential of shares of common stock.
2. Net income per share is calculated based on the following:
For the year ended March 31, 2007

Net income (Millions of yen)

165,091

Amount not attributable to common stockholders (Millions of yen)―

Net income attributable to common stockholders (Millions of yen)

165,091

Average number of shares (shares)
2,344,269
Common stock
2,344,268
Common stock equivalent share; Special class share1
Note: Since shareholder of the special class share is entitled to the same rights as that for shareholders of common stock
regarding dividends and the distribution of residual property, the special class share is classified as common stock
equivalent share.

― 23 ―

更新日時:5/10/2007 8:02:00 PM

ファイル名:④i連結一株 開示の省略

印刷日時:07/05/15 14:47(Omissions of disclosure)With respect to information for leases, related party transactions, tax accounting, securities, derivatives andretirement benefits plan, respective disclosure has been omitted because it does not have significant impact
on the consolidated financial statements.

― 24 ―

更新日時:5/11/2007 4:06:00 PM 印刷日時:07/05/15 13:29

ファイル名:⑥b個別BS

5 Non-consolidated financial statements(1) Non-consolidated balance sheet(Millions of yen)
As of March 31, 2007
Accounts
Amounts

Ratio％(Assets)
ⅠCurrent assets
1 Cash and deposits

15,8712 Marketable securities

995

3 Prepaid expenses

0

4 Deferred tax assets

26
5,994

5 Accounts receivable-other28

6 Other

22,917

Total current assets

2.8

ⅡFixed assets
1 Tangible fixed assets(1) Tools and fixtures2(2) Construction in progress

19

Total tangible fixed assets

22

0.0

2 Intangible assets
511(1) Software

511

Total intangible assets

0.1

3 Investments and other assets
4,962(1) Investment securities(2) Investments in stock of subsidiaries
and affiliates(3) Other793,906

Total investments and other assets

799,335

Total fixed assets

799,868

97.2

Total assets

822,786

100.0

466

― 25 ―

97.1

更新日時:5/11/2007 4:06:00 PM 印刷日時:07/05/15 13:29

ファイル名:⑥b個別BS(Millions of yen)Accounts

As of March 31, 2007
Amounts

Ratio％(Liabilities)
ⅠCurrent liabilities
1 Accounts payable-other223

2 Accrued expenses

59

3 Income taxes payable84

4 Deposits payable

34

5 Accrued bonuses to officers

110

Total current liabilities

511

0.1

ⅡLong-term liabilities
1 Deferred tax liabilities
2 Accrued retirement benefits to officers

2117

Total long-term liabilities

120

0.0

Total liabilities

632

0.1

30,000

3.6(Net assets)
ⅠShareholders’ equity
1 Common stock
2 Capital surplus(1) Capital reserve

762,992

Total capital surplus

762,992

92.7

3 Retained earnings(1) Other retained earnings
Unappropriated retained earnings

30,265

Total retained earnings

30,265

3.7

4 Treasury stock(1,108)(0.1)

Total shareholders’ equity
Ⅱ Valuation, translation adjustments andothers
Unrealized holding gain on securities
Total Valuation, translation adjustments
and others
Total net assets

822,149

99.9

4

0.0

4

0.0

Total liabilities and net assets― 26 ―

822,153

99.9

822,786100.0

更新日時:5/10/2007 7:39:00 PM 印刷日時:07/05/15 13:29

ファイル名:⑥c個別PL(2) Non-consolidated statement of income(Millions of yen)Accounts

For the year ended March 31, 2007
Amounts

Ratio％

ⅠOperating revenues
1 Dividends income

30,3932 Management consulting fee income

2,407

ⅡGeneral and administrative expenses
Operating income

32,801

100.0

2,157

6.6

30,643

93.4

47

0.2

ⅢOther income
1 Interest income

28

2 Interest income-securities

18

3 Other0

ⅣOther expenses
1 Interest expense
2 Amortization of start - up costs

4249

3 Commissions

3

4 Other0

Ordinary income
Income before income taxes

258

0.8

30,43292.8

30,432

Income taxes—current

132

Income taxes—deferred(26)

Net income― 27 ―

106

0.3

30,32692.5

更新日時:5/10/2007 8:05:00 PM

ファイル名:⑥d2個別変動計算書

印刷日時:07/05/15 13:30(3) Non-consolidated statement of changes in net assets
For the year ended March 31, 2007
(Millions of yen)
Valuation,translation
adjustments andothersShareholders’ equity
CapitalsurplusRetained earnings

Capitalreserve

Other retained
earnings
Unappropriatedretained earnings

―

―

―

30,000762,992

Commonstock

Balance at end of priorfiscal year

Total
Unrealized
Treasury stock shareholders’ holding gain on
securities
equity―――Total net
assets―Changes during the period
Establishment of theCompany through thestock transfer

Purchase of treasury
stock

Balance as of March 31,
2007

792,992

30,32630,326(1,724)(1,724)(1,724)

616

555

555

30,326

Net income

Disposal of treasury
stock
Other changes in items
other than those inshareholders’ equity (net)Total changes during theperiod792,992

(61)

4

4

30,000762,992

30,265(1,108)822,149

4

822,153

30,000762,992

30,265(1,108)822,149

4

822,153― 28 ―

更新日時:5/10/2007 8:05:00 PM

ファイル名:⑥d2個別変動計算書

印刷日時:07/05/15 13:30

6 Others(1) Changes in directors and statutory auditors of the Company
Not applicable for the current fiscal year. Information will be disclosed promptly at the point of which disclose isrequired.

― 29 ―

2ファイル名:

更新日時:5/11/2007 11:09:00 AM

印刷日時:07/05/15 13:30(2) Production, orders received and sales performance1) Actual production
The following table shows actual production by business segment.
For the year
Business segment
Category
ended March 31, 2007
89 millions barrels
Crude oil(243 thousands barrels per day)Natural gas
Crude oil and natural gas

Sub total
Petroleum
Products
Iodine384 billions CF(1,051 millions CF per day)
152 millions BOE(418 thousands BOE per day)
243 thousands kl(1,531 thousands barrels)
534 tons

Notes: 1. The amount of LPG produced abroad is included in ‘Crude oil.’ On the other hand, the amount of LPG
produced in the domestic refinery is included in ‘Petroleum Products.’
2. A portion of crude oil production volume is consumed as fuel for petroleum products.
3. The production by the Company’s affiliates accounted for by the equity method is included in the figures above.
Also, the production is a result for the year ended March 31 regardless of a closing date on the basis of fiscal
periods of its subsidiaries or affiliates.
4. The production volume of crude oil and natural gas under the production sharing contracts entered by INPEX
Holdings Group corresponds to the net economic take of our group.
Figures calculated by multiplying the gross production volume by our company’s interest share are 107
millions barrels (292 thousands barrels per day) of crude oil, 686 billions CF (1,878 millions CF per day) of
natural gas, and in total 221 millions BOE (605 thousands BOE per day).
5. BOE means barrels of oil equivalent.
6. Petroleum products are converted in parenthesis. Applied coefficient is 6.29 barrels per 1 kl.
7. Iodine is refined on consignment by another company.
8. Figures are rounded to nearest whole number.

2) Orders received
This information is not disclosed since the amount of orders received accounted for a minor portion of total
sales. In addition, there is no production for orders received in crude oil and natural gas business.

― 30 ―

2ファイル名:

更新日時:5/11/2007 11:09:00 AM

印刷日時:07/05/15 13:30

3) Actual salesa) We take back the full amount of crude oil allocated to us under production sharing contracts andproduced under concession agreements, and primarily sell it to Japanese refineries. We sell natural gas
produced in Indonesia in the form of LNG to Japanese power companies and city gas companies through
PERTAMINA and also sell a part to customers in South Korea, Taiwan and other countries. In addition,
we sell natural gas produced in Japan to customers using our pipeline.
b) Sales by classification during each period were as follows:Business segment
Category
For the year ended March 31, 2007
Sales volume ofSales volume of
Net sales
oversea production
domestic production(Millions of yen)
Crude oil
Crude oil and natural gas

83,105 thousands barrels

27 thousands kl(170 thousands barrels)

319 billions CF

1,273 millions m3(47 billions CF)

LPG: 1,166 thousands barrels

LPG: 18 thousands tons
(184 thousands barrels)

Natural gas
OthersSubtotal

607,400

332,937
25,782966,119
3,593
969,712

Other
Total

Notes: 1. The above amounts do not include the related consumption tax.
2. The Company’s subsidiaries of which closing date for fiscal year is December 31 are principally consolidated
their operating results for the year ended December 31, 2006 except those subsidiaries prepared their financial
statement for consolidation purpose as of the consolidation closing date. However, the significant effects of thedifference in fiscal periods were properly adjusted in consolidation.
3. Sales volumes are rounded to nearest whole number.
4. Sales volumes of domestic production are converted in parenthesis. Applied coefficients are as follows:
Crude oil: 6.29 barrels per 1 kl, natural gas: 37.32 CF per 1 m3, LPG: 10.5 barrels per 1 ton.
5. Sales for major customer and sales as a percentage of total net sales are as follows:

Customer
PERTAMINA

For the year ended March 31, 2007
AmountRatio（Millions of yen）（％）
276,121― 31 ―

28.5

更新日時:5/10/2007 7:44:00 PM

ファイル名:⑦B補足データBSサブ比較

印刷日時:07/05/15 13:31[Supplemental materials]
1. Condensed Consolidated Balance Sheets of INPEX CORPORATION and Teikoku Oil Co., Ltd.
(Millions of yen)Accounts

INPEX CORPORATION（Consolidated）
As of March 31, 2007
Amounts(Assets)
ⅠCurrent assets
1 Cash and deposits
2 Accounts receivable-trade
3 Marketable securities
4 Other
Total current assets
ⅡFixed assets
1 Tangible fixed assets
2 Intangible assets
3 Investments and other assets(1) Investment securities(2) Recoverable accounts
under production sharing(3) OtherLess allowance forrecoverable accounts
under production sharing
Less allowance forinvestments in exploration
Total investments and otherassetsTotal fixed assets
Total assets(Liabilities)
ⅠCurrent liabilities
1 Accounts payable - trade
2 Short-term loans
3 Income taxes payable
4 Other
Total current liabilities
ⅡLong-term liabilities
1 Long-term debt
2 Other
Total long-term liabilities
Total liabilities(Net assets)
ⅠShareholders’ equity
1 Common stock
2 Capital surplus
3 Retained earnings
Total Shareholders’ equity
ⅡValuation, translation adjustments
and others
1 Unrealized holding gain on
securities
2 Unrealized gain from hedging
instruments
3 Translation adjustments
Total valuation, translation
adjustments and others
ⅢMinority interests
Total net assets
Total liabilities and net assets― 32 ―

Teikoku Oil Co., Ltd.
（Consolidated）
As of March 31, 2007
Amounts

162,082
71,75145,472
113,194
392,500

16,324
12,1289,118
21,29858,86957,127130,978

146,7872,225

241,049

108,839

316,894

2,255

26,03813,587(49,556)(1,634)(6,275)(3,869)528,150

119,178

716,255
1,108,756

268,191
327,060

19,12643,82484,47789,042
236,471

3,401
9,724
581
18,62032,328

170,932
14,042
184,974
421,446

27,38745,01072,397
104,725

29,46062,402
540,968
632,831

19,57911,222
140,799
171,600

4,215

47,408

―

17

1,556

892

5,772

48,31848,705687,310
1,108,756

2,415
222,335
327,060

更新日時:5/10/2007 7:45:00 PM

ファイル名:⑦C_補足データ要約PL(サブ比較英文)

印刷日時:07/05/15 13:31

2. Condensed Consolidated Statements of Income of INPEX CORPORATION and Teikoku Oil Co., Ltd.
(Millions of yen)
INPEX CORPORATION
Teikoku Oil Co., Ltd.
(Consolidated)(Consolidated)
For the year ended
Accounts
For the year ended
March 31, 2007
March 31, 2007
Amounts
Amounts
Ⅰ Net sales
Ⅱ Cost of sales
Gross profit
Ⅲ Exploration expenses
Ⅳ Selling, general andadministrative expenses
Operating income
Ⅴ Other income
1 Interest income
2 Equity in earnings ofaffiliates
3 Gain on transfer of mining rights
4 Foreign exchange gain
5 Other
Ⅵ Other expenses
1 Interest expense
2 Provision for allowance forrecoverable accounts under
production sharing
3 Provision for exploration projects
4 OtherOrdinary income
Ⅶ Special income
1 Gain on sales of fixed assets
Income before income taxes andminority interests
Income taxes-current
Income taxes-deferred
Minority interests
Net income― 33 ―

877,322306,600
570,721
14,794

114,867
59,62755,2402,894

21,81020,800534,116
58,23912,196

31,545
4,747
611

977

372

33,533
5,674
5,857
25,898
11,559

―
64
3,699
6,619
836

4,775

1,401

1,975
7,587
566,457
―
―

997
3,384
29,673653
653

566,457

30,326418,169(19,230)
7,580
159,938

14,688(162)351
15,449