ファConsolidated Financial Results for the Six Months ended September 30, 2007
November 9, 2007
Note: The following report is an English translation of the Japanese-language original.
Company name

: INPEX Holdings Inc.

Stock Exchange on which the Company is listed

Code number: 1605

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 filing: December 27, 2007
Financial report: Tokyo Stock Exchange

Scheduled date of payment of cash dividends: December 5, 2007
(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for the Six Months ended September 30, 2007 (April 1, 2007-September 30, 2007)(1) Consolidated operating results(The percentage expressions represent the changes from the corresponding period of the previous fiscal year)

Net sales
For the six months ended
September 30, 2007
September 30, 2006
For the year ended
March 31, 2007

Operating income

Million yen%

Million yen

Ordinary income%

Million yen

Net income%

Million yen%

554,173
500,847

10.6―

325,966
298,457

9.2―

321,642
294,0299.4―

81,04564,67425.3―

969,712―559,077―

586,262―

165,091―

Net income pershare—basic
For the six months ended
September 30, 2007
September 30, 2006
For the year ended
March 31, 2007

Net income pershare—diluted
Yen

Yen

34,385.24
27,647.74――

70,423.45―(Reference): Equity in earnings of affiliates: for the six months ended September 30, 2007, ¥ 1,087 million
for the six months ended September 30, 2006, ¥ 778 million
for the year ended March 31, 2007, ¥ 1,349 million(2) Consolidated financial position
Million yen

Net assets excluding minority interests
Net assets excluding
as a percentage of total assets
minority interests per share
Million yen%
Yen

1,720,288
1,530,943
1,608,106

1,165,847
947,949
1,080,016

Total assets
As of September 30, 2007
As of September 30, 2006
As of March 31, 2007

Net assets

64.0
58.8
64.0

466,950.22
383,912.77
436,467.92(Reference): Net assets excluding minority interests: as of September 30, 2007, ¥ 1,100,466 million
as of September 30, 2006, ¥ 900,904 million
as of March 31, 2007, ¥ 1,028,894 million(3) Consolidated cash flows
For the six months ended
September 30, 2007
September 30, 2006
For the year ended
Mach 31, 2007

Cash flows from
Cash flows from investing Cash flows from financing Cash and cash equivalents at
operating activities
activities
activities
end of the period
Million yen
Million yen
Million yen
Million yen

171,234
151,444(80,107)(77,290)(24,999)
8,843

252,103
235,335

231,981(209,243)

13,793

189,416

2. Dividends
Annual cash dividends per share
At 1st half end
For the year ended
March 31, 2007
For the year ending
March 31, 2008
For the year ending
March 31, 2008 (estimated)Yen

At fiscal year end

Total

Yen

―

7,000.00

3,500.00――

3,500.00

Yen

7,000.00
7,000.00

― 1 ―

ファ

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 previous fiscal year)

Net sales

Operating income

Ordinary income

Net income pershare

Net income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,027,000

5.9

557,000(0.4)

540,000(7.9)

127,000(23.1)

53,888.69

For the year ending
March 31, 2008

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

: Yes
: No

[Refer to page 15 “Basic of Presenting Consolidated Financial Statements” for details. ](3) Number of shares issued (Common stock)
1. Number of shares issued at end of the period (including treasury stocks):

as of September 30, 2007; 2,358,410 shares
as of September 30, 2006; 2,358,410 shares
as of March 31, 2007; 2,358,410 shares
as of September 30, 2007; 1,700 shares
as of September 30, 2006; 11,772 shares
as of March 31, 2007; 1,089 shares

2. Number of treasury shares at end of the period:

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 35 “ Per share information” for the basis of calculation of consolidated net income per share.

(Reference) Non-Consolidated Financial Results
1. Financial results for the six months ended September 30, 2007 (April 1, 2007-September 30, 2007)(1) Operating results(The percentage expressions represent the changes from the corresponding period of the previous fiscal year)

Operating revenues
For the six months ended
September 30, 2007
September 30, 2006
For the year ended
March 31, 2007

Operating income

Million yen%

Million yen

Ordinary income%

Net income

Million yen%

Million yen

%

8,593
1,194

619.6
―

7,370
249

―
―

7,435
(5)

―
―

7,348
(18)

―
―

32,801―30,643―30,432―30,326―

Net income pershare—basic
For the six months ended
September 30, 2007
September 30, 2006
For the year ended
March 31, 2007

Yen

3,117.72(7.67)
12,862.32(2) Financial position
Total assets
As of September 30, 2007
As of September 30, 2006
As of March 31, 2007

Net assets

Million yen

Million yen

812,918
794,855
822,786

812,311792,117822,153

Net assets as a percentage of total
assets
%

99.9
99.7
99.9

Net assets per shareYen

344,680.43
335,978.92
348,766.27(Reference): Net assets: as of September 30, 2007, ¥ 812,311 million
as of September 30, 2006, ¥ 792,117 million
as of March 31, 2007, ¥ 822,153 million*Explanation regarding the appropriate use of estimated consolidated operating results
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 six months ended September 30, 2007
During the six months ended September 30, 2007, the Japanese economy continued to benefit from a modest
recovery supported by increase of the capital investment thanks to the steady corporate earnings and recovery of
personal consumption with improvement of the labor market.
Crude oil prices were highly volatile during the early part of the six months ended September 30, 2007 due togeopolitical factors such as the restraint of British soldiers and nuclear issue in Iran, and the tight gasoline supply
and demand conditions, the trouble of refining and the increase in crude oil and petroleum products inventory in
the United States. In June crude oil prices increased due to the political uncertainty in Nigeria and a decrease ofgasoline inventory in the United States and West Texas Intermediate (WTI) crude has reached US$70 per bbl
since August 31, 2006. In the later half of the six months ended September 30, 2007 crude oil price has kept thehighest level and WTI recorded historical high of US$78.21 per bbl on July 31, 2007. In August crude oil pricedecreased once, however with the arrival of September crude price increase again due to the inventory concern of
crude oil and petroleum products caused by hurricane, considerable decrease of crude oil inventory in the UnitedStates in addition to the influx of speculative money, and WTI recorded once again historical high of US$83.32
per bbl on September 20, 2007.
With regards to the foreign exchange market, the U.S. dollar began to trade at the lower end of the 118 yen level
and the decline of yen against the U.S. dollar accelerated by what is called yen-carry trades, trading that benefit
from the interest-rate spread between U.S. and Japanese currencies, boosting the U.S. dollar to reach the 124 yenlevel in June after interval of five years. However, since July, affected by the U.S. subprime mortgage crisis which
has been causing credit crunch and liquidity scarcity, the yen moved upward against U.S. dollars drastically with
dissolution of yen-carry trades and marked below 112 yen level at one time. As a result, the U.S. dollar middle
rate (TTM) at the end of the current period came at ¥115.43, appreciated by ¥2.66 from the previous fiscal year
end.
In these business circumstances, consolidated net sales for the six months ended September 30, 2007 increased by¥53,326 million, or 10.6%, to ¥554,173 million from the corresponding period of the previous fiscal year. Net
sales of crude oil increased by ¥40,963 million, or 12.9%, to ¥357,715 million, net sales of natural gas increasedby ¥13,280 million, or 7.8%, to ¥183,560 million, respectively. Sales volume of crude oil increased by 1,917
Mbbls, or 4.7 %, to 42,971 Mbbls mainly due to increase in production volume at ACG Oil Fields. Sales volumeof natural gas increased by 22,358 MMcf, or 12.4%, to 202,083 MMcf. Sales volume of natural gas produced
overseas increased by 13,930 MMcf, or 8.7%, to 173,861 MMcf mainly due to initiation of natural gas sales at
Venezuela project owing to the effect of agreement and sales volume of natural gas produced domesticallyincreased by 226 MM ㎥, or 42.6%, to 756 MM ㎥ (28,222 MMcf) mainly due to increase in sales volume formajor clients. The average sales price of crude oil produced overseas increased by US$2.91 per bbl, or 4.4 %, toUS$69.47 per bbl. Meanwhile, the average sales price of natural gas produced overseas decreased by US$0.66
per Mcf, or 8.3%, to US$7.32 per Mcf. The decrease in the average sales price of natural gas produced overseas
was mainly due to lower unit price of the Venezuela project, whose sales are recorded from the current period. By
the energy policy of government of Venezuela, natural gas produced is supplied at lower price for domestic
demand for energy, such as electric power generation. In addition, the average sales price of natural gas produced
domestically increased by ¥0.44, or 1.3%, to ¥34.92 per ㎥. The average exchange rate of Japanese yen against
U.S. dollar fell for sales ¥3.96, or 3.4%, to ¥119.41 per U.S. dollar from the corresponding period of the previous
fiscal year.
The increase of ¥53.3 billion in net sales was derived mainly from the following factors: an increase in sales
volume contributed ¥22.2 billion, a increase in unit sales price contributed ¥11.6 billion, and the depreciation ofJapanese yen against U.S. dollar contributed ¥16.9 billion. Besides, the initiation of sales at Venezuela projectcontributed ¥3.5 billion, whereas net sales excluding crude oil and natural gas decreased by ¥0.9 billion.
Cost of sales for the six months ended September 30, 2007 increased by ¥19,326 million, or 11.3%, to ¥189,656
million mainly due to increase in royalty at ADMA Block owing to increase in sales and increase in expenses fordevelopment wells at South Natuna See Block B. Exploration expenses decreased by ¥1,049 million, or 11.2%, to¥8,316 million. Selling, general and administrative expenses increased by ¥7,539 million, or 33.2%, to ¥30,233
million mainly due to increase in transportation cost of crude oil. As a result, operating income increased by¥27,509 million, or 9.2%, to ¥325,966 million.
Other income increased by ¥10,145 million, or 85.3 %, to ¥22,038 million mainly due to increase in foreignexchange gain and besides, net gain on re-determination of unitized field, which is reflecting to adjustment as a―3―

result of increase in participating rights by reason of re-determination of reserves at Bayu-Undan Field, and net
gain on taking effect of exploration and production agreement which reflects adjustment of the effect of joint
venture agreement at Venezuela project. Other expenses increased by ¥10,042 million, or 61.5%, to ¥26,363
million mainly due to loss on valuation of investment securities of ¥6,820 million and Provision for allowance forrecoverable accounts under production sharing of ¥7,527 million, increased by ¥5,728 million from ¥1,799
million from the corresponding period of the previous fiscal year. As a result, ordinary income increased by¥27,612 million, or 9.4%, to ¥321,642 million.
Total amount of current income taxes and deferred income taxes increased by ¥8,399 million, or 3.8%, to¥231,918 million, and minority interests were ¥8,678 million. As a result of above effects, net income for the six
months ended September 30, 2007 increased by ¥16,371 million, or 25.3%, to ¥81,045 million from thecorresponding period of the previous fiscal year.
With respect to segment information, the oil and natural gas business combined accounts for more than 90% of
the aggregate sales and operating income of all segments. Therefore, the business segment information has been
omitted.
On a full-year basis, consolidated net sales for the year ending March 31, 2008, are expected to be ¥1,027 billion,
consolidated operating income is expected to be ¥557 billion, consolidated ordinary income is expected to be¥540 billion, net income for the year ending March 31, 2008, is expected to be ¥127 billion taking into
consideration the fact of the semi-annual financial results for six months ended September 30, 2007 and delay of
exploration investments originally planned in first -half to second-half of the year.
In these estimates, the crude oil price for the second-half period is assumed to be US$60per barrel (for Brent
crude) with the exchange rate of the Japanese yen against the U.S. dollar at ¥115, which are not changed from theprevious assumptions for the financial forecast for the year ending March 31, 2008 disclosed on August 9, 2007
because trend of oil price and exchange rate remain fluid.
Differences from the forecasts disclosed on August 9, 2007 are as follows:(Millions of yen)
Net sales
Operating income Ordinary income
Net income
1,008,000
529,000
519,000
120,000
Previous Forecasts: A
Revised Forecasts: B
Increase (Decrease): B－A
Rate of increase (%)

1,027,000
19,0001.9

557,000
28,0005.3

540,000
21,0004.0

127,000
7,000
5.8(2) Financial Position
Consolidated total assets as of September 30, 2007 increased by ¥112,181 million to ¥1,720,288 million from
¥1,608,106 million as of March 31, 2007. Current assets increased by ¥44,618 million to 518,742 million mainly
due to increase in cash and deposits and marketable securities. Fixed assets increased by ¥67,563 million to¥1,201,545 million mainly due to increase in investment securities and recoverable accounts under production
sharing.
Meanwhile, total liabilities increased by ¥26,349 million to ¥554,440 million from ¥528,090 million as of March
31, 2007. Current liabilities increased by ¥25,924 million to ¥292,171 million mainly due to increase in overseas
income taxes payable. Long-term liabilities increased by ¥425 million to ¥262,268 million.
Net assets increased by ¥85,831 million, to ¥1,165,847 million. Total shareholders’ equity increased by ¥63,855
million, to ¥1,081,358 million, total valuation, translation adjustment and others increased by ¥7,715 million to¥19,107 million and minority interests increased by ¥14,260 million to ¥65,381 million.
As for cash flows for the six months ended September 30, 2007, net cash provided by operating activities
increased by ¥19,789 million to ¥171,234 million from corresponding period of the previous fiscal year. This ismainly due to increase in sales price of crude oil, sales volume of crude oil and natural gas, and besides, theaverage exchange rate of Japanese yen against U.S. dollar fell for sales during the six months ended for
September 30, 2007. Meanwhile, net cash used in investing activities increased by ¥2,817 million to ¥80,107
million mainly due to purchases of investment securities, investment in recoverable accounts under production
sharing (capital expenditures) and payments for purchase of tangible fixed assets. Net cash used in financial
activities increased by ¥33,842 million (deduction from net cash provided by financial activities ¥8,843 million at
the corresponding period of the previous fiscal year) to ¥24,999 million mainly due to repayments of long-term
debt. After deducting ¥3,440 million of the effect of exchange rate changes on cash and cash equivalents, theincrease in cash and cash equivalents at the end of the six months ended September 30, 2007 amounted to ¥62,686
million. Cash and cash equivalents at the end of the six months ended September 30, 2007 totaled ¥252,103
million reflecting above net increase of ¥62,686 million from ¥189,416 million at the end of the previous fiscal
year.
―4―

(3) Dividend Policy and dividends for the year ending March 31, 2008
In order to secure a stable supply of petroleum and natural gas resources efficiently, INPEX Holdings Group aims
to expand its operating base. To this end, we are reinforcing investments in exploration and development in Japanand overseas, as well as in maintenance and expansion of the supply infrastructure. The robust financial base of
INPEX Holdings Group is crucial for maintaining this level of investment. Therefore, our basic policy is tomaximize corporate value through ongoing maintenance and enlargement of our reserves and production of
petroleum and natural gas by affirmative investments, while paying out cash dividends as direct compensation toshareholders, in light of the medium- to long-term prospects for INPEX Holdings Group.
We decided mid-term dividend to be ¥3,500 per share which is same amount as disclosed on May 11, 2007 basedon the policy above. Year-end dividend is planned to be ¥3,500 per share, thus total dividend for the year is
expected to be ¥7,000 per share.
As to use of retained earnings, we plan to apply the earnings to investments for the purpose of maintenance andenlargement of our reserves and production of petroleum and natural gas based on the policy described above.

―5―

2. Overview of the INPEX Holdings Group
Disclosure of Overview of the INPEX Holdings Group omitted since no significant changes in the group from thecontents of the recent financial report.
3. Management Policy
Disclosure of Management Policy is omitted since no significant changes from the contents of the recent
semi-annual financial report.

―6―

更新日時:11/8/2007 7:20:00 PM

ァイル名:③H20.3中間_BS

印刷日時:07/11/13 19:09

4 Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen, %)Accounts

As of September 30, 2007 Fluctuation
As of September 30, 2006
(A)(A)-(B)
Amounts

Ratio

Amounts

Condensed consolidatedbalance sheet as ofMarch 31, 2007
(B)

Ratio

Amounts

Amounts

Ratio

30.2

36,791
9,870
22,842
9,761(34,648)
1
44,618194,278
81,95455,586
13,254129,061(11)
474,123

29.5

13.6

(2,773)
17,262
14,489103,091
116,136
219,227

13.6

14.9

(7,081)(3,544)
1,839(8,785)132,105
127,110
6,604
265,821

16.5(Assets)
Ⅰ Current assets
1 Cash and deposits *2
2 Accounts receivable-trade
3 Marketable securities
4 Inventories
5 Other
Allowance for doubtful accounts
Total current assets
Ⅱ Fixed assets
1 Tangible fixed assets *1,2
(1) Buildings and structures(2) Other
Total tangible fixed assets
2 Intangible assets(1) Goodwill(2) Exploration and development rights(3) Other
Total intangible assets
3 Investments and other assets(1) Investment securities *2

191,414
79,291
84,778
11,93670,333(5)
437,749

82,422
131,722
214,144
135,582
129,407
6,683
271,67428.6

231,069
91,82578,42823,016
94,412(10)
518,74214.0

100,317
133,398
233,71617.7

125,024
123,5658,444
257,035

314,814389,552

34,701

354,851(2) Recoverable accounts under
production sharing

308,434

341,659

22,509319,149(3) Other
Allowance for doubtful accounts

42,346(2,347)53,001(1,536)

14,733333

38,267(1,869)Allowance for recoverable accounts
under production sharing(47,611)(59,435)(8,244)(51,190)

Allowance for investments in
exploration(8,260)(12,446)(2,172)(10,273)

Total investments and other assets
Total fixed assets
Total assets

607,375
1,093,194
1,530,943

61,86067,563112,181

648,934
1,133,982
1,608,106

39.7
71.4
100.0

― 7 ―

710,794
1,201,545
1,720,288

41.3
69.8
100.0

40.4
70.5
100.0

更新日時:11/8/2007 7:20:00 PM

ァイル名:③H20.3中間_BS

印刷日時:07/11/13 19:09(Millions of yen, %)As of September 30, 2006
Accounts
Amounts

Ratio

As of September 30, 2007 Fluctuation(A)(A)-(B)
Amounts

Condensed consolidatedbalance sheet as ofMarch 31, 2007
(B)

Ratio

Amounts

Amounts

17.0

57(13,703)21,821
10,725
(158)
(87)
7,270
25,924

21,79350,64985,14388,7686,899
193
12,799266,247

Ratio(Liabilities)
Ⅰ Current liabilities
1 Accounts payable-trade
2 Short-term loans *2
3 Income taxes payable
4 Accounts payable-other *2
5 Provision for exploration projects
6 Accrued bonuses to officers
7 Other *2
Total current liabilities
Ⅱ Long-term liabilities
1 Long-term debt *2
2 Accrued retirement benefits toemployees
3 Accrued retirement benefits toofficers
4 Liabilities for site restoration anddecommissioning costs
5 Liabilities for losses ondevelopment activities
6 Accrued special repair andmaintenance
7 Other *2
Total long-term liabilities
Total liabilities(Net assets)
Ⅰ Shareholders’ equity
1 Common stock
2 Capital surplus
3 Retained earnings
4 Treasury stock
Total shareholders’ equity
Ⅱ Valuation, translation adjustments
and others
1 Unrealized holding gain (loss) on
securities
2 Unrealized gain from hedging
instruments
3 Translation adjustments
Total valuation, translation
adjustments and others
Ⅲ Minority interests
Total net assets
Total liabilities and net assets

26,96428,737110,145―
7,337
51
86,213
259,449

17.0

21,851
36,945
106,964
99,4936,741
106
20,069292,171

237,845

195,584(2,735)

198,320

8,651

8,530

158

8,371

1,545

433

(1,278)

1,712

11,74911,868(61)

11,930

1,962

1,964

(0)

1,964

169

171

(7)

179

16.5

61,619323,544582,993

21.1
38.1

43,715262,268
554,440

15.2
32.2

4,350
425
26,34939,365
261,843
528,090

16.3
32.8

30,000417,514469,703(10,625)
906,592

1.9
27.3
30.7
(0.7)
59.2

30,000418,492
634,665(1,798)1,081,358

1.8
24.3
36.9
(0.1)
62.9

―
1
64,544(690)
63,85530,000418,491
570,120(1,108)1,017,503

1.9
26.0
35.5
(0.1)
63.3

(6,125)(0.4)

15,478

0.9

6,130

9,348

0.6

28

0.0

14

0.0

(3)

17

0.0

408

0.0

3,614

0.2

1,588

2,025

0.1

(5,688)(0.4)

19,1071.1

7,715

11,391

0.7

47,045947,949
1,530,943

3.1
61.9
100.0

65,381
1,165,847
1,720,288

3.8
67.8
100.0

14,26085,831
112,181

51,121
1,080,016
1,608,106

3.2
67.2
100.0

― 8 ―

9ァイル名:③H20.3中間_PL

更新日時(2) Consolidated Statements of Income
For the six months ended
September 30, 2006 (A)Accounts

Amounts

Ratio(Millions of yen, %)Condensed consolidated
For the six months ended Fluctuation
statement of income for the
September 30, 2007 (B)(B) - (A)year ended March 31, 2007
Amounts
Ratio Amounts
Amounts
Ratio

Ⅰ Net sales

500,847 100.0

554,173 100.0

53,326

969,712 100.0

Ⅱ Cost of sales

170,32934.0

189,656

34.2

19,326

343,79435.5

Gross profit
Ⅲ Exploration expenses

330,51766.0

364,51765.8

33,999625,918

64.5

9,366

1.9

8,316

1.5

(1,049)17,688

1.8

22,693

4.5

30,233

5.5

7,539

49,152

5.0

298,457

59.6

325,966

58.8

27,509559,077

57.7

60,0796.1

32,893

3.4

1 Exploration expenses

9,429

2 Exploration subsides
Ⅳ Selling, general andadministrative expenses
Operating income
Ⅴ Other income

(63)
*1

8,679
(362)

17,780(91)

1 Interest income

6,079

5,901

12,8432 Dividend income
3 Equity in earnings ofaffiliates
4 Net gain on redetermination of unitized *2
field
5 Net gain on taking effect of
exploration and production *3
agreement
6 Foreign exchange gain
7 Other

1,191

1,263

2,291

778

1,087

1,349

―

3,849

―

―

3,549

―

1,473
2,369

11,892

2.4

4,561
1,826

22,0384.0

10,145

5,738
37,855

Ⅵ Other expenses
1 Interest expense
2 Provision for allowance forrecoverable accounts
under production sharing
3 Provision for exploration
projects
4 Loss on valuation of
investment securities
5 OtherOrdinary income
Income before income
taxes and minority interests
Income taxes-current
Income taxes-deferred
Minority interests
Net income

5,906

5,912

12,389

1,799

7,527

6,176

2,672

687

2,973

―

6,820

―

5,942

232,297(8,778)26,363

4.8

10,042

58.7

321,64258.0

27,612586,262

60.4

58.7

321,64258.0

27,612586,26260.4

231,918

41.8

8,399

16,3203.3

294,029
294,029

5,415

238,957(7,038)

11,355432,894(19,655)

223,51844.6

413,239

42.6

5,835

1.2

8,678

1.6

2,842

7,932

0.8

12.9

81,045

14.6

16,371

165,091

17.0

64,674― 9 ―更新日時:11/8/2007 6:11:00 PM

ファイル名:④H20.3中間_a連結変動計算書

印刷日時:07/11/13 19:10(3) Consolidated Statements of Changes in Net Assets
For the six months ended September 30, 2006
（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 September 30, 2006

Common stock

Capital surplus

Retained earnings

Treasury stock

―

―

―

―

Total
shareholders’equity―30,000415,892

415,734(19,641)

841,985(1,338)10,354(10,559)(146)
64,674(1,338)
11,976(10,625)(10,625)

906,592
906,592(10,559)(146)
64,674
1,622

30,00030,000417,514417,514469,703469,703

Valuation, translation adjustments and others
Total
Unrealized Unrealized
valuation, Minority interests Total net assets
holding gain gain from Translationtranslation(loss) on
hedging
adjustments
adjustments
securities instruments
and others
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 September 30, 2006――

(5,723)

―

―

―

―

1,117

(4,605)39,921

877,300(10,559)(146)
64,674(1,338)
11,976

(402)

28

(709)

(1,083)

7,124

6,041

(6,125)(6,125)

28
28

408
408

(5,688)(5,688)47,04547,045947,949
947,949―10―

更新日時:11/8/2007 6:11:00 PM

ファイル名:④H20.3中間_a連結変動計算書

印刷日時:07/11/13 19:10

For the six months ended September 30, 2007
（Millions of yen）
Shareholders’ equity

Balance as of March 31, 2007
Changes during the period
Cash dividends paid
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 September 30, 2007

Common stock

Capital surplus

Retained earnings

Treasury stock

30,000418,491

570,120(1,108)

Total
shareholders’equity1,017,503

(719)
28

(16,501)
81,045
(719)
29

(690)
(1,798)63,855
1,081,358(16,501)
81,0451―
30,0001
418,492

64,544
634,665

Valuation, translation adjustments and others

Balance as of March 31, 2007
Changes during the period
Cash dividends paid
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 September 30, 2007

Total
Unrealized Unrealized
valuation, Minority interests Total net assets
holding gain gain from Translationtranslation(loss) on
hedging
adjustments
adjustments
securities instruments
and others
9,348
17
2,025
11,391
51,121
1,080,016(16,501)
81,045
(719)
29
6,130

(3)

1,588

7,715

14,26021,9766,130
15,478

(3)
14

1,588
3,614

7,715
19,107

14,26065,381

85,831
1,165,847―11―更新日時:11/8/2007 6:11:00 PM

ファイル名:④H20.3中間_a連結変動計算書

印刷日時:07/11/13 19:10

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(10,559)(146)
165,091
2,598

30,00030,000418,491
418,491

570,120
570,120

Valuation, translation adjustments and others
Total
Unrealized Unrealized
valuation, Minority interests Total net assets
holding gain gain from Translationtranslation(loss) on
hedging
adjustments
adjustments
securities instruments
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 a wholly-owned subsidiary of the Company.

―12―ファイル名:④H20.3中間_CF更(4) Consolidated Statements of Cash Flows(Millions of yen)Accounts

For the six months For the six months Condensed consolidated
statement of cash flows
ended September 30, ended September 30,
for the year ended
2006
2007
March 31, 2007
Amounts

Amounts

Amounts

Ⅰ Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Provision for allowance for recoverable accounts
under production sharing
Provision for exploration projects

294,029
12,5463,501

321,642
17,7383,236

586,262
30,599
6,977

2,518

8,197

6,080

3,504

(189)

3,038

Provision for accrued retirement benefits to employee
Provision for site restoration anddecommissioning costs
Other provisions

1,124

158

845

1,041

(65)

1,214

(483)

480

1,376

Interest and dividend income(7,271)(7,164)(15,134)

Interest expense

5,906

5,912

12,389Foreign exchange gain

(670)

(1,654)(1,652)Equity in earnings of affiliates(778)(1,087)(1,349)Loss on the sales of investment securities

1,604

7

2,613

―

6,820

―

(7,698)(9,627)(10,385)

55,84850,622

105,949(13,616)(14,472)(18,955)(2,489)(5,511)(8,085)

Loss on the valuation of investment securities
Accounts receivable-trade
Recovery of recoverable accounts under
production sharing (capital expenditures)
Recoverable accounts under production
sharing (operating expenditures)
Inventories
Accounts payable

4,296

105

(879)

Other

3,468

8,024

(37,343)356,382

383,175

663,561

SubtotalInterest and dividends received

7,352

7,235

20,559Interest paid

(5,446)(5,938)(11,993)(206,843)(213,238)(440,146)

151,444

171,234

231,981

Income taxes paid
Net cash provided by operating activities― 13 ―

ファイル名:④H20.3中間_CF

Accounts

更For the six months For the six months Condensed consolidated
statement of cash flows
ended September 30, ended September 30,
for the year ended
2006
2007
March 31, 2007
Amounts

Amounts

Amounts

Ⅱ Cash flows from investing activities
Increase in time deposits(279)(2,191)(17,078)

Decrease in time deposits

1,278

16,804

2,797

Payments for purchases of marketable securities(149)(3,993)(5,140)

Proceeds from sales of marketable securities

13,64322,156

23,643

Payments for purchases of tangible fixed assets(17,591)(25,015)(37,844)

Proceeds from sales of tangible fixed assets

137

93

955

Payments for purchases of intangible assets

(975)

(732)

(1,778)

Payments for purchases of investment securities(47,211)(62,059)(109,823)

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

26,283104

43,609(55,660)(58,612)(111,313)

2,134

10,566(6,523)Long-term loans made(524)

(4,308)(832)

Collection of long-term loans receivable

529

158

888

Proceeds from transfer of mining rights―

27,890

6,707

1,095

(968)

2,490

(77,290)(80,107)(209,243)

(115)

(75)

(120)
30,083(38,661)

Other
Net cash used in investing activities
Ⅲ Cash flows from financing activities
Decrease in short-term loans
Proceeds from long-term debt
Repayments of long-term debt

16,90919,262(7,281)(30,860)

Proceeds from minority interests for additional shares

1,615

3,930

3,606

Purchase of treasury stock

(857)

(689)

(1,169)11,549―22,397(10,787)(16,485)(10,791)

Dividends paid to minority shareholders

(81)

(81)

(81)

Stock transfer payment

(867)

(0)

(867)

Restricted cash deposit(1,240)

―

―

―

―

9,400

8,843

(24,999)

13,793

1,194(3,440)1,741

84,192

62,68638,273

Proceeds from sales of treasury stock
Cash dividends paid

Other
Net cash (used in) provided by financing
activities
Ⅳ Effect of exchange rate changes on cash
and cash equivalents
Ⅴ Net increase in cash and cash equivalents
Ⅵ Cash and cash equivalents at beginning of the period

151,143

189,416

151,143

Ⅶ Cash and cash equivalents at end of the period

235,335

252,103

189,416― 14 ―

更新日時:11/8/2007 6:14:00 PM

ファイル名:④H20.3中間d連結会計方針

印刷日時:07/11/13 19:11(5) Basic of Presenting Consolidated Financial Statements
For the six months ended
September 30, 2006
1.Scope of consolidation
Number of consolidated subsidiaries: 57

For the six months ended
September 30, 2007
1.Scope of consolidation
Number of consolidated subsidiaries: 59

For the year ended
March 31, 2007
1.Scope of consolidation
Number of consolidated subsidiaries: 60

Names of major subsidiaries;
INPEX CORPORATION, Teikoku OilCo., Ltd., Japan Oil Development Co.,
Ltd., INPEX Natuna, Ltd., INPEX
Sahul, Ltd., Teikoku Oil D.R. Congo,
Co., Ltd., INPEX Southwest CaspianSea, Ltd., INPEX North Caspian Sea,
Ltd., INPEX Browse, Ltd., INPEX
Masela, Ltd.

Names of major subsidiaries;
INPEX CORPORATION, Teikoku OilCo., Ltd., Japan Oil Development Co.,
Ltd., INPEX Natuna, Ltd., INPEX
Sahul, Ltd., Teikoku Oil D.R. Congo,
Co., Ltd., INPEX Southwest CaspianSea, Ltd., INPEX North Caspian Sea,
Ltd., INPEX Browse, Ltd., INPEX
Masela, Ltd.

Names of major subsidiaries;
INPEX CORPORATION, Teikoku OilCo., Ltd., Japan Oil Development Co.,
Ltd., INPEX Natuna, Ltd., INPEX
Sahul, Ltd., Teikoku Oil D.R. Congo,
Co., Ltd., INPEX Southwest CaspianSea, Ltd., INPEX North Caspian Sea,
Ltd., INPEX Browse, Ltd., INPEX
Masela, Ltd.

During this period:
Number of new companies included inconsolidated subsidiaries:
2

During this period:
Number of new companies included inconsolidated subsidiaries:
1
Number of companies excluded fromconsolidated subsidiaries:
2

During this period:
Number of new companies included inconsolidated subsidiaries:
5

Details for the above changes:
INPEX Offshore Northeast Java, Ltd.,and Teikoku Oil and Gas Venezuela, C.
A. have been included due toestablishment.

Details for the above changes:(1) Teikoku Oil Suriname, Co., Ltd. has
been included due to establishment.

Details for the above changes:
INPEX Offshore Northeast Java, Ltd.,
Teikoku Oil and Gas Venezuela, C. A.,
and 3 other companies have been
included due to establishment.

Names of major unconsolidated
subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku
Oil de Burgos, S.A. de C. V.

(2) Teikoku Oil Company Panama, S.A.
and INPEX Offshore South
Sulawesi, Ltd. have been excluded
due to completion of liquidation.
Names of major unconsolidated
subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku
Oil de Burgos, S.A. de C. V.

Names of major unconsolidated
subsidiaries:
Sakata Natural Gas, Co., Ltd., Teikoku
Oil de Burgos, S.A. de C. V.

(Reason for exclusion fromconsolidation)
Those companies are not consolidated
because their total assets, total net
sales, total net income (the equity
portion) and total retained earnings (theequity portion) do not have significant
impact on the consolidated financial
statements.

(Reason for exclusion fromconsolidation)
Same as on the left

(Reason for exclusion fromconsolidation)
Same as on the left

2. Application of equity method
Unconsolidated subsidiary accounted
for by the equity method: None

2. Application of equity method
Same as on the left

2. Application of equity method
Same as on the left

Number of affiliates accounted for by
the equity method:
13

Number of affiliates accounted for by
the equity method:
13

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., ALBACORA JAPAOPETROLEO LTDA, INPEX Offshore
North Campos, Ltd.

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

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

―15―

更新日時:11/8/2007 6:14:00 PM

ファイル名:④H20.3中間d連結会計方針

For the six months ended
September 30, 2006

For the six months ended
September 30, 2007

印刷日時:07/11/13 19:11

For the year ended
March 31, 2007
Number of new companies included inaffiliates accounted for by the equity
method:1
Number of companies excluded fromaffiliates accounted for by the equity
method: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 of liquidation

Names of major affiliates notaccounted 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.

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.

Names of major affiliates notaccounted 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 notaccounted for by the equity method
because their total net income (theequity portion) and total retained
earnings (the equity portion) do nothave significant impact on the
consolidated financial statements.

(Reason for not applying the equity
method)Same as on the left

(Reason for not applying the equity
method)Same as on the left

Procedures for application of the equity
method:Procedures for application of the equity
method:Procedures for application of theequity method:

Regarding affiliates accounted for by
the equity method having a different
closing date from the consolidated
closing date, the Company used thefinancial statements of each affiliate
prepared as of their closing date. For
certain affiliates, however, theCompany used financial statements
prepared for consolidation purposes asof the consolidated closing date.

Same as on the left

Same as on the left

―16―

更新日時:11/8/2007 6:14:00 PM

ファイル名:④H20.3中間d連結会計方針

For the six months ended
September 30, 2006
3. Closing dates for the fiscal year of
consolidated subsidiaries

For the six months ended
September 30, 2007
3. Closing dates for the fiscal year of
consolidated subsidiaries

印刷日時:07/11/13 19:11

For the year ended
March 31, 2007
3. Closing dates for the fiscal year of
consolidated subsidiaries

For the 36 companies for which the
For the 39 companies for which the
For the 39 companies for which theclosing date differed from theclosing date differed from theclosing date differed from theconsolidated closing date, including,consolidated closing date, including, but
consolidated closing date, including,but not limited to, INPEX Sahul, Ltd.,not limited to, INPEX Sahul, Ltd.,but not limited to, INPEX Sahul, Ltd.,INPEX Browse, Ltd., and INPEX
INPEX Browse, Ltd., and INPEX
INPEX Browse, Ltd., and INPEX
Masela, Ltd. we used the financial
Masela, Ltd. we used the financial
Masela, Ltd., we used the financial
statements for the six months ended
statements for the six months ended Junestatements for the year ended December
June 30. However, the necessary
30. However, the necessary adjustments
31. However, the necessary adjustments
adjustments have been made to thehave been made to the financial
have been made to the financial
financial statements of thosestatements of those companies to reflect
statements of those companies to reflectcompanies to reflect any significant
any significant transactions madeany significant transactions madetransactions made between the
between the Company’s closing date andbetween the Company’s closing dateCompany’s closing date and those of
those of the consolidated subsidiaries.
and those of the consolidated
the consolidated subsidiaries.
For the 10 companies including, but not
subsidiaries.
For the 11 companies including, but
limited to, Japan Oil Development, Co.,For the 11 companies including, but not
not limited to, Japan Oil Development,
Ltd., Teikoku Oil D.R. Congo, Co., Ltd.,
limited to, Japan Oil Development, Co.,
Co., Ltd., Teikoku Oil D.R. Congo,
INPEX Southwest Caspian Sea, Ltd., andLtd., Teikoku Oil D.R. Congo, Co.,
Co., Ltd., INPEX Southwest Caspian
INPEX North Caspian Sea, Ltd., we usedLtd., INPEX Southwest Caspian Sea,
Sea, Ltd., and INPEX North Caspian
financial statements for the six months
Ltd., and INPEX North Caspian Sea,
Sea, Ltd., we used financial statements
ended the consolidated closing date evenLtd., we used financial statements forfor the six months ended thethough their closing date is June 30.
the year ended the consolidated closing
consolidated closing date even thoughdate even though their closing date istheir closing date is June 30.
December 31.
4. Accounting policies
4. Accounting policies
4. Accounting policies
1) Valuation method for significant assets 1) Valuation method for significant assets
1) Valuation method for significant assets(a) Securities(a) Securities(a) Securities
Other securities
Other securities
Other securities
With a determinable market value
With a determinable market value
With a determinable market value
Other securities with a
Other securities with a determinable
Other securities with adeterminable market value aremarket value are stated at fair value
determinable market value arestated at fair value with any
with any changes in unrealizedstated at fair value with any
changes in unrealized holding gain
holding gain or loss, net of thechanges in unrealized holding gainor loss, net of the applicableapplicable income taxes, included
or loss, net of the applicable
income taxes, primarily included
directly in net assets. Cost ofincome taxes, included directly indirectly in net assets. Cost of
securities sold is determined by the
net assets. Cost of securities sold issecurities sold is determined by themoving-average method.
determined by the moving-average
moving-average method.
method.
Without a determinable market value
Other securities without adeterminable market value are statedat cost determined by the movingaverage method.
(b) Inventories
Products
Carried mainly at the lower ofcost or market, cost being
determined by the movingaverage method
Supplies
Carried mainly at cost,
determined by the movingaverage method
Work in process
Carried at cost, determined by theindividual cost basis

Without a determinable market value
Same as on the left

Without a determinable market value
Same as on the left(b) Inventories
Products
Same as on the left(b) Inventories
Products
Same as on the left

Supplies
Same as on the left

Supplies
Same as on the left

Work in process
Same as on the left

Work in process
Same as on the left

―17―

更新日時:11/8/2007 6:14:00 PM

ファイル名:④H20.3中間d連結会計方針

For the six months ended
September 30, 2006
2) Depreciation method of significant
depreciable assets(a) Tangible fixed assets
Depreciation of mining facilities ismainly computed by the unit-ofproduction method. For othertangible fixed assets, straight-line
method of depreciation is applied.
Useful life and residual value aredetermined as prescribed in thecorporate tax law, while wells andcertain machinery (offshore platform
and related facilities) are depreciatedto the expected residual value (zero).

For the six months ended
September 30, 2007
2) Depreciation method of significant
depreciable assets(a) Tangible fixed assets
Depreciation of mining facilities ismainly computed by the unit-ofproduction method. For othertangible 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(Change in accounting policy)
As for tangible fixed assets acquired
on and after April 1, 2007, theCompany has changed thedepreciation method based on anamendment in corporation tax law.
This change does not havesignificant impact on the
consolidated financial statements.
(Additional information)
As for other tangible fixed assets
whose book value reached theirresidual value, the Company andcertain subsidiaries depreciates theresidual value equally over 5 years
in accordance with the method
prescribed in amendment incorporation tax law.

(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.

(b) Intangible assets
Exploration and development rights
Same as on the left

印刷日時:07/11/13 19:11

For the year ended
March 31, 2007
2) Depreciation method of significant
depreciable assets(a) Tangible fixed assets
Depreciation of mining facilities ismainly computed by the unit-ofproduction method. For other tangible
fixed assets, straight-line method ofdepreciation 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
Same as on the left

Mining rights
Mining rights are mainly amortized by
the unit-of-production method.

Mining rights
Same as on the left

Mining rights
Same as on the left

Other
Other intangible assets are mainly
amortized by the straight-line method
using the useful lives and residual
value of the respective assets asprescribed by the corporate tax law.
Software for internal use is being
amortized over five years.

Other
Other intangible assets are mainly
amortized by the straight-line method.
Software for internal use is being
amortized over five years.

Other
Same as on the left

―18―

更新日時:11/8/2007 6:14:00 PM

ファイル名:④H20.3中間d連結会計方針

For the six months ended
September 30, 2006
3) Basis for significant allowances(a) Allowance for doubtful accounts
Allowance for doubtful accounts isprovided at an amount determinedbased on the historical experience ofbad debt with respect to ordinary
receivables, plus an estimate of
uncollectible amounts determined byreference to specific doubtfulreceivables from customers which
are experiencing financial
difficulties.
(b) Allowance for recoverable accounts
under production sharing
Allowance for recoverable accounts
under production sharing is provided
for probable losses on specificinvestments made under production
sharing contracts.
(c) Allowance for investments in
exploration
Allowance for investments in
exploration is provided for future
potential losses on investments in
exploration companies at an
estimated amount based on the net
assets of the investees.
(d) Provision for exploration projects
Provision for exploration projects isprovided for future expenditures of
consolidated subsidiaries at
exploration stage based on scheduleof investments in exploration.
(e) Accrued bonuses to officers
Accrued bonuses to officers areprovided at expected payment
amount.

印刷日時:07/11/13 19:11

For the six months ended
September 30, 2007
3) Basis for significant allowances(a) Allowance for doubtful accounts
Same as on the left

For the year ended
March 31, 2007
3) Basis for significant allowances(a) Allowance for doubtful accounts
Same as on the left(b) Allowance for recoverable accounts
under production sharing
Same as on the left(b) Allowance for recoverable accounts
under production sharing
Same as on the left(c) Allowance for investments in
exploration
Same as on the left(c) Allowance for investments in
exploration
Same as on the left(d) Provision for exploration projects
Same as on the left(d) Provision for exploration projects
Same as on the left(e) Accrued bonuses to officers
Accrued bonuses to officers areprovided at expected payment
amount incurred for the six months
ended September 30, 2007.

(e) Accrued bonuses to officers
Accrued bonuses to officers areprovided at expected payment
amount for the year ended March
31, 2007.

―19―

更新日時:11/8/2007 6:14:00 PM

ファイル名:④H20.3中間d連結会計方針

For the six months ended
September 30, 2006(f) Accrued retirement benefits toemployees
Accrued retirement benefits toemployees are provided at the amountcalculated based on the expected
retirement benefit obligation and theestimated value of pension plan assets
at the end of this period. Because
certain subsidiaries are classified as
small enterprises, we employ asimplified method (at the amountwhich would be required to be paid as
if all active employees voluntarily
terminated their employment as of thebalance sheet date) for the calculationof the retirement benefit obligation of
the subsidiaries.

(g) Accrued retirement benefits toofficers
Accrued retirement benefits toofficers are stated at the amountwhich would be required to be paid
as if all officers voluntarily
terminated their services as of thebalance sheet date based on theirrespective internal rules.
(h) Liabilities for site restoration anddecommissioning costs
Liabilities for site restoration anddecommissioning 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 and natural gas
development activities individuallyestimated for each project.

印刷日時:07/11/13 19:11

For the six months ended
For the year ended
September 30, 2007
March 31, 2007(f) Accrued retirement benefits to(f) Accrued retirement benefits toemployees
employees
Accrued retirement benefits to
Accrued retirement benefits toemployees are provided at the amountemployees are provided at the amountcalculated based on the expectedcalculated based on the expected
retirement benefit obligation and theretirement benefit obligation and theestimated value of pension plan assets
estimated value of pension plan assets
at the end of this period. Because
at the end of this period. Because
certain subsidiaries are classified as
certain subsidiaries are classified as
small enterprises, we employ asmall enterprises, we employ asimplified method (at the amountsimplified method (at the amountwhich would be required to be paid as
which would be required to be paid as
if all active employees voluntarily
if all active employees voluntarily
terminated their employment as of theterminated their employment as of thebalance sheet date) for the calculation
balance sheet date) for the calculationof the retirement benefit obligation ofof the retirement benefit obligation of
the subsidiaries.
the subsidiaries.
Actuarial gains and losses are charged
Actuarial gains and losses are charged
or credited to income as incurred.
or credited to income as incurred.
(g) Accrued retirement benefits to(g) Accrued retirement benefits toofficers
officers
Same as on the left
Same as on the left(h) Liabilities for site restoration anddecommissioning costs
Same as on the left(h) Liabilities for site restoration anddecommissioning costs
Same as on the left(i) Liabilities for losses on development
activities
Same as on the left(i) Liabilities for losses on development
activities
Same as on the left(j) Accrued special repair and maintenance (j) Accrued special repair and maintenance (j) Accrued special repair and maintenanceAccrued special repair andSame as on the left
Same as on the left
maintenance are provided for planned
major repair and maintenanceactivities on tanks in certain
subsidiaries at the amount being
accumulated through the next activity.

―20―

更新日時:11/8/2007 6:14:00 PM

ファイル名:④H20.3中間d連結会計方針

For the six months ended
For the six months ended
September 30, 2006
September 30, 2007
4) Translation of consolidated subsidiaries’ 4) Translation of consolidated
subsidiaries’ significant assets andsignificant assets and liabilities
liabilities denominated in foreign
denominated in foreign currencies intocurrencies into yen in preparation of
yen in preparation of the consolidated
the consolidated financial statements
financial statements
Monetary assets and liabilities
denominated in foreign currencies aretranslated into yen at the exchange
rates prevailing at the balance sheet
date. The resulting exchange gain orloss is credited or charged to income.

Same as on the left

印刷日時:07/11/13 19:11

For the year ended
March 31, 2007
4) Translation of consolidated subsidiaries’
significant assets and liabilities
denominated in foreign currencies into
yen in preparation of the consolidated
financial statements
Same as on the left

The revenue and expense accounts of
the overseas subsidiaries are translated
into yen at the average rates of
exchange during the period. Thebalance sheet accounts are translated
into yen at the rates of exchange in
effect at the balance sheet date.
Translation adjustments are presented
as a component of net assets andminority interests.
5) Accounting for important leases
5) Accounting for important leases
5) Accounting for important leases
Non-cancelable finance leases areSame as on the left
Same as on the left
primarily accounted for as operatingleases except that lease agreements
which stipulate the transfer ofownership of the leased assets to thelessee are accounted for as financeleases.
6) Accounting for major hedge transactions 6) Accounting for major hedge transactions 6) Accounting for major hedge transactions(a) Hedge accounting(a) Hedge accounting(a) Hedge accounting
Simplified accounting method isSame as on the left
Same as on the left
applied to interest rate swaps.
For certain companies
accounted for by equity method,deferred hedge accounting is
adopted.
(b) Hedging instruments and hedged(b) Hedging instruments and hedged(b) Hedging instruments and hedged
items
items
items
Hedge instruments: Interest rate
Same as on the left
Same as on the left
swap transactions
Hedged items: Interest
payments on borrowings(c) Hedging policy(c) Hedging policy(c) Hedging policy
The nominal amount of theSame as on the left
Same as on the leftderivative transaction is limited
to within the scope of actual
demand, and the Company does
not engage in speculative
derivative transactions.
(d) Hedge effectiveness assessment(d) Hedge effectiveness assessment(d) Hedge effectiveness assessment
methodmethodmethodSince simplified accounting
Sane as on the left
Same as on the left
method is applied, the Company
does not perform hedge
effectiveness assessment.

―21―

更新日時:11/8/2007 6:14:00 PM

ファイル名:④H20.3中間d連結会計方針

印刷日時:07/11/13 19:11

For the six months ended
For the six months ended
For the year ended
September 30, 2006
September 30, 2007
March 31, 2007
7) Other items important to the preparation 7) Other items important to the preparation 7) Other items important to the preparationof the consolidated financial statementsof the consolidated financial statementsof the consolidated financial statements(a) Consumption tax
Transactions subject to theconsumption tax are recorded
at amounts exclusive of theconsumption tax.
(b) Recoverable accounts under
production sharing
Cash investments made by theCompany during exploration,
development and production
phases under a production
sharing contract 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 andcrude oil in accordance withthe contract, an amountcorresponding to the purchasecosts of the products (i.e., acost recovery portion of theinvestments) is released fromthis account.
5 Scope of cash and cash equivalents inconsolidated statement of cash flow
Cash (cash and cash equivalents) inthe consolidated statement of cash
flow consisted of cash on hand, cash
in banks which can be withdrawn on
demand, and short-term investmentswith a maturity of three months orless when purchased which caneasily be converted to cash and are
subject to little risk of change invalue.

(a) Consumption tax
Same as on the left(a) Consumption tax
Same as on the left(b) Recoverable accounts under
production sharing
Same as on the left(b) Recoverable accounts under
production sharing
Same as on the left

5 Scope of cash and cash equivalents inconsolidated statement of cash flow
Same as on the left

5 Scope of cash and cash equivalents inconsolidated statement of cash flow
Same as on the left

―22―

更新日時:11/8/2007 6:14:00 PM

ファイル名:④H20.3中間d連結会計方針

印刷日時:07/11/13 19:11(Changes in Presentation)
For the year ended
March 31, 2007

For the six months ended
September 30, 2007
(Consolidated Balance Sheets)“Accounts payable-other”, previously included in “Other”
current liabilities is separately presented because its amountexceeded 5% of total liabilities and net assets. The amount of“Accounts payable-other” as of September 30, 2006 is¥70,548 million.

―23―

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間e連結BSPLCF注記

印刷日時:07/11/13 19:11(6) Notes(Consolidated balance sheets)
As of September 30, 2006

As of September 30, 2007

As of March 31, 2007

*1 Accumulated depreciation
Accumulated depreciation of tangible
fixed assets is ¥441,328 million.
*2. Assets provided as collateral andcollateral-backed debt are as follows:(Collateralized Assets) Millions of yen
Cash and deposit 10,640(―)
Buildings and
2,038(1,490)structures
Others (tangible
6,753(5,587)
fixed assets)
Investment
(―)
9,068
securities
Total
28,500(7,078)*1 Accumulated depreciation
Accumulated depreciation of tangible
fixed assets is ¥435,516 million.
*2. Assets provided as collateral andcollateral-backed debt are as follows:(Collateralized Assets) Millions of yen
Buildings and
2,172(1,666)
structures
Others (tangible
10,680(9,514)fixed assets)
Investment(―)
10,078securities
Total
22,931(11,181)*1 Accumulated depreciation
Accumulated depreciation of tangible
fixed assets is ¥454,161 million.
*2. Assets provided as collateral andcollateral-backed debt are as follows:(Collateralized Assets) Millions of yen
Buildings and
2,180(1,652)structures
Others (tangible
10,610(9,444)fixed assets)
Investment
(―)
9,998
securities
Total
22,790(11,097)(Debt Guarantees)
Short-term loans
80
Others (current
5,606
liabilities)
Long-term debt 111,724
Others (long16
term liabilities)
Guarantee
19,688obligations
Total
137,115

Millions of yen(Debt Guarantees)
Short-term loans(―)
80
Accounts(5,277)
5,890
payable-other(15,460)
Long-term debt
14,339Others (long(―)
16
term liabilities)
Total
20,327(―)

Millions of yen(Debt Guarantees)
Short-term loans(―)
95
Accounts(5,329)5,480
payable-other(13,468)
Long-term debt
15,272Others (long(―)
16
term liabilities)(18,797)
Total
20,864

Millions of yen(―)(4,956)(14,525)(―)(19,481)(20,737)* Amounts in parenthesis () above represent
foundation collateral and liabilities.
In addition, investment securities of ¥6,959
million are pledged as collateral for the
BTC pipeline project financing.

* Amounts in parenthesis () above represent
foundation collateral and liabilities.
In addition, investment securities of ¥7,459
million are pledged as collateral for the
BTC pipeline project financing.

―24―* 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.

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間e連結BSPLCF注記

As of September 30, 2006

As of September 30, 2007

印刷日時:07/11/13 19:11

As of March 31, 2007

3 Contingent liabilities
The Company and its consolidated
subsidiaries are contingently liable asguarantors of indebtedness of thefollowing companies:

3 Contingent liabilities
The Company and its consolidated
subsidiaries are contingently liable asguarantors of indebtedness of thefollowing companies:

3 Contingent liabilities
The Company and its consolidated
subsidiaries are contingently liable asguarantors of indebtedness of thefollowing companies:

Millions of yen
Sakhalin Oil and Gas
11,247Development Co., Ltd.
Tangguh Trustee*
10,755
Japan Ohanet Oil & Gas Co.,
2,108
Ltd.
ALBACORA JAPAO
1,959
PETROLEO LIMITADA
Nippon Oil Exploration
828(Malaysia) Limited.
Sakata Natural Gas Co., Ltd.
738
Nippon Oil Exploration
381(Sarawak) Limited.
Employees (housing loans)
559
Total
28,577

Millions of yen
Tangguh Trustee*
16,397
Sakhalin Oil and Gas
10,616Development Co., Ltd.
Japan Ohanet Oil & Gas Co.,
1,376
Ltd.
INPEX Offshore North Campos,
1,317
Ltd.
ALBACORA JAPAO
1,149
PETROLEO LIMITADA
Sakata Natural Gas Co., Ltd.
894
Nippon Oil Exploration
695(Malaysia) Limited.
Nippon Oil Exploration
186(Sarawak) Limited.
Employees (housing loans)
512
Total
33,147*Debt for investment funds of Tangguh
LNG project through MI Berau B. V.

Millions of yen
Tangguh Trustee*
13,729Sakhalin Oil and Gas
11,845Development Co., Ltd.
Japan Ohanet Oil & Gas Co.,
1,759
Ltd.
ALBACORA JAPAO
1,569
PETROLEO LIMITADA
Sakata Natural Gas Co., Ltd.
1,013
Nippon Oil Exploration
770(Malaysia) Limited.
Nippon Oil Exploration
286(Sarawak) Limited.
Employees (housing loans)
537
Total
31,511

In addition, INPEX BTC Pipeline, Ltd., aconsolidated subsidiary, is contingently
liable as guarantor of indebtedness of
BTC Pipeline Project Finance in theamount of ¥7,411 million until BTC
Pipeline project completion (guarantee forcompletion).

In addition, INPEX BTC Pipeline, Ltd., aconsolidated subsidiary, is contingently
liable as guarantor of indebtedness of
BTC Pipeline Project Finance in theamount of ¥7,252 million until BTC
Pipeline project completion (guarantee forcompletion).

*Debt for investment funds of Tangguh
LNG project through MI Berau B. V.
In addition, INPEX BTC Pipeline, Ltd., aconsolidated subsidiary, is contingently
liable as guarantor of indebtedness of
BTC Pipeline Project Finance in theamount of ¥7,053 million until BTC
Pipeline project completion (guarantee
for completion).

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

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間e連結BSPLCF注記

印刷日時:07/11/13 19:11(Consolidated statements of income)For the six months ended September 30, 2006

For the six months ended September 30, 2007

For the year ended March 31, 2007

*1. Major accounts included in selling, general *1. Major accounts included in selling, general *1. Major accounts included in selling, generaland administrative expenses are as follows:
and administrative expenses are as follows:
and administrative expenses are as follows:

Millions of yen
Personnel expenses
5,510(Including provision for accrued
181)
retirement benefits to officers(Including provision for accrued
260)
retirement benefits to employees(Including provision for accrued
51)
bonuses to officers
Freight expenses
3,146
Depreciation expenses
5,769
Amortization of goodwill
3,501

Millions of yen
Personnel expenses
6,168(Including provision for accrued
168)
retirement benefits to officers(Including provision for accrued
259)
retirement benefits to employees(Including provision for accrued106)
bonuses to officers
Freight expenses
7,512
Depreciation expenses
7,415
Amortization of goodwill
3,236*2. Net gain on re-determination of unitizedfield
The Company re-determined reserves ata certain unitized field and agreed withother third parties to change theCompanys’ participating interest
percentage retroactively. As aconsequence, the Company recognizes
its revenue and expenditure occurred in
the past and records the net gain.
*3. Net gain on taking effect of explorationand production agreement
Upon taking effect of exploration andproduction agreement, the Company
retroactively adjusts its revenue andexpenditure occurred in the past andrecords the net gain.

―26―

Millions of yen
Personnel expenses
11,082(Including provision for accrued
339)
retirement benefits to officers(Including provision for accrued
451)
retirement benefits to employees(Including provision for accrued
193)
bonuses to officers
Freight expenses
8,671
Depreciation expenses
12,867
Amortization of goodwill
6,977

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間e連結BSPLCF注記

印刷日時:07/11/13 19:11(Consolidated statements of changes in net assets)
For the six months ended September 30, 2006
1.

Type and number of shares issued and outstanding and treasury stock
Balance as ofMarch 31, 2006

Increase(Shares)
Decrease

Balance as of
September 30, 2006

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
23,274
11,502
11,772―
Total
23,274
11,502
11,772―
Notes 1: Increase in common stock by 2,358,409 shares and special class by 1 share are due to the establishment of
the Company through stock transfers.
2: Increase in treasury stock of common stock by 23,274 shares is due to increase in consolidated subsidiarys’
stock through stock transfer by 22,001 shares and purchase of 1,272 odd lot shares.
3: Decrease in treasury stock of common stock by 11,502 shares is due to sales of consolidated subsidiary’s
common stocks of 11,000 shares and sales of 502 odd lot shares.
2. Share subscription rights
None
3. Dividends
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
Special class
05,500
March 31, 2006
June 27, 2006
on June 27, 2006
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.

―27―

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間e連結BSPLCF注記

印刷日時:07/11/13 19:11

For the six months ended September 30, 2007
1. Type and number of shares issued and outstanding and treasury stock
Balance as ofMarch 31, 2007

(Shares)

Increase

Decrease

Balance as of
September 30, 2007

Number of shares
Common stock
2,358,409――
Special class share
1
―
―
Total
2,358,410――
Treasury stock
Common stock
1,089
638
27
Total
1,089
638
27
Notes 1: Increase in treasury stock of common stock is due to purchase of 638 odd lot shares.
2: Decrease in treasury stock of common stock is due to sales of 27 odd lot shares.

2,358,409
1
2,358,410
1,700
1,700

2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution

Type ofshare

Ordinary general
meeting ofshareholders held on
June 26, 2007

Commonstock
Specialclass share

Cash dividends paid
(Millions of yen)

Dividends per
share
(Yen)

Entitlement date

Effective date

16,5017,000

March 31, 2007

June 27, 2007

0

7,000

March 31, 2007

June 27, 2007

(2) Dividends, of which the entitlement date was in the six months ended September 30, 2007 and whose effective
date will be in the subsequent period
Cash dividends
Dividends
Type of
Source of
Resolution
paid
per share
Entitlement date Effective dateshare
dividends(Millions of yen)
(Yen)
CommonRetained
September 30,
December 5,
Board of directors’
8,248
3,500
stock
earnings
2007
2007
meeting held on
SpecialRetained
September 30,
December 5,
November 9, 2007
0
3,500
class shareearnings
2007
2007

―28―

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間e連結BSPLCF注記

印刷日時:07/11/13 19:11

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 odd lot shares.
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
paid
per share
Entitlement date Effective dateshare
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―29―

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間e連結BSPLCF注記

印刷日時:07/11/13 19:11(Consolidated statements of cash flows)

For the six months ended
September 30, 2006

For the six months ended
September 30, 2007

For the year ended
March 31, 2007

Cash and cash equivalents at the end of
the period are reconciled to the accountreported in the consolidated balance sheet
as follows:
Millions of yen
Cash and deposits
191,414

Cash and cash equivalents at the end of
the period are reconciled to the accountreported in the consolidated balance
sheet as follows:
Millions of yen
231,069
Cash and deposits
Time deposits for more than
(2,220)three months and others
Marketable securities
16,682(commercial paper)
Marketable securities
2,074
(MMF)
Marketable securities
1,000(certificate of deposit)
Other current assets (short3,496
term bonds with repurchaseagreements)
252,103
Cash and cash equivalents

Cash and cash equivalents at the end of
the period are reconciled to the accountreported in the consolidated balance sheet
as follows:
Millions of yen
194,278
Cash and deposits
Time deposits for more than
(16,827)
three months and others
Marketable securities
6,893(commercial paper)
Marketable securities
2,074(MMF, others)
Other current assets (short-term
2,997
bonds with repurchaseagreements, others)
189,416
Cash and cash equivalents

Time deposits pledged
Time deposits for more than
three months and others
Marketable securities(commercial paper, others)
Other current assets (shortterm bonds with repurchaseagreements, othes)
Cash and cash equivalents(10,640)(575)
53,136
1,999
235,335―30―

ファイル名:④H20.3中間fセグメント

更新日時:11/8/2007 6:18:00 PM

印刷日時:07/11/13 19:11(Segment information)
1. Business segment information
For the six months ended September 30, 2006
Segment information by business has been omitted because the crude oil and natural gas business accounts for more than 90% of
total sales and operating income.
For the six months ended September 30, 2007
Segment information by business has been omitted because the crude oil and natural gas business accounts for more than 90% of
total sales and operating income.
For the year ended 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 and operating income.

―31―

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間fセグメント

印刷日時:07/11/13 19:11

2. Geographical segment information
For the six months ended September 30, 2006

(Millions of yen)Japan

Asia Oceania

NIS

33,559196,63162,496208,158

—

―

—

—

—

33,559196,63162,496

Operating expenses

25,72573,239Operating income (loss)

7,834

123,391

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

Notes:

Middle East Africa

Eliminations
and other

Consolidated

500,847—

500,847

—

—

—

—

208,158—

500,847—

500,847

38,85361,045274

199,1383,251

202,390

23,643

147,113(274)

301,708(3,251)

298,457

AmericasTotal

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 other than Japan 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 ¥4,776 million under the operating expenses aremainly amortization of goodwill and general administrative expenses.

For the six months ended September 30, 2007

(Millions of yen)Japan

Asia Oceania

NIS

41,823203,726

81,384

223,073

4,165

―

―

―

―

41,823203,726

81,384

Operating expenses

29,59380,006

Operating income

12,230123,720

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

Notes:

Middle East Africa

Eliminations
and other

Consolidated

554,173―554,173

―

―

―

―

223,073

4,165

554,173―554,173

45,89367,2692,265

225,028

3,178

228,206

35,490155,804

1,899

329,145(3,178)

325,966

AmericasTotal

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 other than Japan 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 ¥4,758 million under the operating expenses aremainly amortization of goodwill and general administrative expenses.

―32―

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間fセグメント

印刷日時:07/11/13 19:11

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

241,905

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

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

35,621

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

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 other than Japan 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.

―33―

更新日時:11/8/2007 6:18:00 PM

ファイル名:④H20.3中間fセグメント

印刷日時:07/11/13 19:11

3. Overseas sales
For the six months ended September 30, 2006
Asia - Oceania
I.

Overseas sales (Millions of yen)

163,939

Other

Total

22,783

II. Consolidated sales (Millions of yen)

500,847

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

186,722

32.7

4.6

37.3

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(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.

For the six months ended September 30, 2007
Asia - Oceania
I.

Overseas sales (Millions of yen)

176,817

Other

Total

41,814

II. Consolidated sales (Millions of yen)

554,173

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

218,632

31.9

7.6

39.5

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, Philippines,
Australia, India(2) Other･･･････････････USA, Italy, Chile
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.

For the year ended 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.

―34―

更新日時:11/8/2007 7:06:00 PM

ファイル名:④H20.3中間i連結一株後発開示の省略

印刷日時:07/11/13 19:12(Per share information)

For the six months ended
September 30, 2006

For the six months ended
September 30, 2007

For the year ended
March 31, 2007

Net assets excluding¥383,912.77
minority interests per share

Net assets excluding¥466,950.22
minority interests per share

Net assets excluding¥436,467.92
minority interests per share

Net income per share

Net income per share

Net income per share

Notes:¥27,647.74¥34,385.24¥70,423.45

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:

Net income (Millions of yen)

For the six months ended
September 30, 2006

For the six months ended
September 30, 2007

64,674

81,045For the year ended
March 31, 2007
165,091

Amount not attributable to common―――
stockholders (Millions of yen)
Net income attributable to common
64,674
81,045
165,091
stockholders (Millions of yen)
2,344,269
2,356,997
Average number of shares (shares)
2,339,237
2,344,268
2,356,996
Common stock
2,339,236
Common stock equivalent share;111Special class share
Note: Since a 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.

―35―

更新日時:11/8/2007 7:06:00 PM

ファイル名:④H20.3中間i連結一株後発開示の省略

印刷日時:07/11/13 19:12(Significant subsequent events)
For the six months ended September 30, For the six months ended September 30,
2006
2007
1. Transfer of interest by INPEX
Browse, Ltd.
INPEX Browse, Ltd., a consolidated
subsidiary of the Company,
transferred on August 28, 2006 its
24% of participating interest in WA285-P in the State of Western
Australia in the Commonwealth ofAustralia in which INPEX Browse,
Ltd. is pursuing exploration
activities (100% participatinginterest), to TOTAL E&P Australia.
This transfer of the participatinginterest has become effective on
November 24, 2006 upon theapproval of the Australian
government.
As a result of this transfer of theparticipating interest, the ordinary
income and income before income
taxes and minority interests for theyear ending March 31, 2007 are
estimated to increase by ¥33.0
billion.

No relevant matters

2. Transfer of interest on Azadegan oil
field in the Islamic Republic of IranAfter September 30, 2006, Azadegan
Petroleum Development, Ltd., aconsolidated subsidiary of theCompany, which holds 75%
participating interest in Azadegan oil
field has agreed with National
Iranian Oil Company (NIOC, oilcompany run by the Iranian
government) and Naftiran
Interetrade Co., Ltd. (NICO,
subsidiary of NIOC) on thefollowing basic terms and conditions
and in process of discussion forfurther details:(1) Azadegan Petroleum
Development, Ltd. and NICO
continue to contribute to thedevelopment of the Azadegan oil
field as contractors based on theservice contract (buyback
contract).
(2) Azadegan Petroleum
Development, Ltd. will hold 10%of participating interest, andtransfer the rest of its participatinginterest (65%) to NICO.
(3) NICO becomes a operator basedon the change of the participatinginterest share.
This transfer would not havesignificant impact on the
consolidated statement of income forthe year ending March 31, 2007.

―36―

For the year ended March 31, 2007
No relevant matters更新日時:11/8/2007 7:06:00 PM

ファイル名:④H20.3中間i連結一株後発開示の省略

印刷日時:07/11/13 19:12(Omissions of disclosure)With respect to information for leases, securities, derivatives and business integration, respective disclosure has been omitted
because it does not have significant impact on the consolidated financial statements.

―37―更新日時:11/7/2007 7:08:00 PM 印刷日時:07/11/13 19:12

ファイル名:⑥H20.3中間b個別BS

5 Non-consolidated financial statements(1) Non-consolidated balance sheets

Accounts(Assets)
Ⅰ Current assets
1 Cash and deposits
2 Marketable securities
3 Other
Total current assets
Ⅱ Fixed assets
1 Tangible fixed assets
2 Intangible assets
3 Investments and other assets(1) Investment securities(2) Investments in stock ofsubsidiaries and affiliates(3) Other
Total investments and otherassetsTotal fixed assets
Total assets

As of September 30,
2006

As of September 30,
2007
(A)

Amounts

Ratio

Amounts

452
―
5
458

0.1

2,141
9,987
1,513
13,642

―
―

―
―

105
824

Ratio

(Millions of yen, %)Condensed balance sheet
as of March 31, 2007
Fluctuation(B)(A)-(B)
Amounts
Ratio

1.7(13,730)
8,991(4,535)(9,274)

15,871995
6,049
22,917

2.8

0.0
0.1

83
312

22
511

0.0
0.1

―

3,972

(989)

4,962

793,906

793,906―

793,906

491

466

0

466

794,39799.9

798,345

98.2

(989)

799,335

97.1

794,397
794,855

99.9
100.0

799,275
812,918

98.3
100.0

(593)
(9,868)799,868
822,786

97.2
100.0

―38―

更新日時:11/7/2007 7:08:00 PM 印刷日時:07/11/13 19:12

ファイル名:⑥H20.3中間b個別BS

Accounts

As of September 30,
2006

As of September 30,
2007
(A)

Amounts

Ratio

Amounts

0.3

―
55
383
439

Ratio

(Millions of yen, %)Condensed balance sheet
as of March 31, 2007
Fluctuation(B)(A)-(B)
Amounts
Ratio(Liabilities)
Ⅰ Current liabilities
1 Short-term loans
2 Accrued bonuses to officers
3 Other
Total current liabilities
Ⅱ Long-term liabilities
1 Accrued retirement benefits toofficers
2 Other
Total long-term liabilities
Total liabilities(Net assets)
Ⅰ Shareholders’ equity
1 Common stock
2 Capital surplus(1) Capital reserve(2) Other capital surplus
Total capital surplus
3 Retained earnings(1) Other retained earnings
Unappropriated retained
earnings
Total retained earnings
4 Treasury stock
Total shareholders’ equity
Ⅱ Valuation, translation adjustments
and others
1 Unrealized holding gain on
securities
Total valuation, translation
adjustments and others
Total net assets
Total liabilities and net assets

2,400
27
251
2,679

0.1

163

59

―
(54)
(17)
(71)

―
110
401
511

45

117

0.1

―
59
2,738

0.0
0.3

3
166
606

0.0
0.1

0
45
(26)

2
120
632

0.0
0.1

30,0003.8

30,0003.7―

30,0003.6

96.0

762,9921
762,993

93.8

―
1
1

762,992―
762,992

92.7(9,152)30,265(9,152)(690)(9,841)30,265(1,108)822,149(0)

4762,992―
762,992

(71)
(71)
(803)
792,117

21,112
(0.0)
(0.1)
99.7

21,112(1,798)812,307

―

2.6
(0.2)
99.9

3

3.7
(0.1)
99.9

―

―

3

0.0

(0)

4

0.0

792,117794,855

99.7
100.0

812,311
812,918

99.9
100.0

(9,842)(9,868)822,153
822,786

99.9
100.0

―39―

更新日時:11/8/2007 6:19:00 PM 印刷日時:07/11/13 19:13

ファイル名:⑥H20.3中間c個別PL(2) Non-consolidated statements of operations(Millions of yen, %)Accounts

For the six months ended
September 30, 2006 (A)Amounts

Ⅰ Operating revenues

Ratio

For the six months ended Fluctuation Condensed statement ofincome for the year ended
September 30, 2007 (B) (B) - (A)March 31, 2007
Amounts

Ratio

Amounts

Amounts

Ratio

1,194

100.0

8,593

100.0

7,399

32,801

100.0

944

79.1

1,223

14.2

279

2,157

6.6

249

20.9

7,370

85.8

7,120

30,643

93.4

Ⅲ Other income

0

0.0

66

0.7

66

47

0.2

Ⅳ Other expenses

255

21.4

1

0.0

(254)

258

0.8

Ordinary income (loss)

(5)

(0.5)

7,435

86.5

7,441

30,432

92.8

Income (loss) before income
taxes

(5)

(0.5)

7,435

86.5

7,441

30,432

92.8

106

0.3

30,326

92.5

Ⅱ General and administrative
expenses
Operating income

Income taxes-current

40

Income taxes-deferred(28)

Net income (loss)

76
12

(1.0)

(18)

(1.5)

10

― 40 ―

132
87

1.0

74

7,348

85.5

7,366

(26)

更新日時:11/7/2007 9:43:00 AM

ファイル名:⑥H20.3中間d2個別変動計算書

印刷日時:07/11/13 19:13(3) Non-consolidated statements of changes in net assets
For the six months ended September 30, 2006
（Millions of yen）
Shareholders’ equity
Capital surplus
Common stock

Balance at end of priorfiscal year

Capital reserve――

30,000762,992

Retained earnings
Other retained
earnings
Unappropriatedretained earnings

Total
shareholders’equityTotal net assets

Treasury stock

―

―

―

―

792,992

792,992

(18)

(18)

(1,338)(1,338)(1,338)

(53)

534

481

481

Changes during the period
Establishment of theCompany through thestock transfer
Net loss(18)

Purchase of treasury
stock
Disposal of treasury
stock
Total changes during theperiodBalance at September 30,
2006

30,000762,992

(71)

(803)

792,117792,11730,000762,992

(71)

(803)

792,117792,117

For the six months ended September 30, 2007
（Millions of yen）
Valuation,translation
adjustments
and others

Shareholders’ equity

Commonstock

Balance as of March 31,
2007
Changes during theperiodDividends fromretained earnings

Capital surplus

Retainedearnings

Other
capitalsurplusTotal
capitalreserve

Other retained
earnings
Unappropriatedretained earnings― 762,992

30,265

Capitalreserve

30,000 762,992

Net income
Purchase of treasury
stock
Disposal of treasury
stock
Other changes in items
other than those inshareholders’ equity (net)Total changes during theperiodBalance as of September
30, 2007

1――

30,000 762,992

1

Unrealized
Total
Treasury
holding gain
shareholders’ (loss) on
stock
equitysecurities(1,108)822,149

4

Total net assets

822,153(16,501)(16,501)(16,501)

7,348

7,348

7,348

(719)

(719)

(719)

28

29

29

1

(0)

(0)

1

(9,152)(690)(9,841)(0)(9,842)

1 762,993

21,112(1,798)812,3073

812,311―41―

更新日時:11/7/2007 9:43:00 AM

ファイル名:⑥H20.3中間d2個別変動計算書

印刷日時:07/11/13 19:13

For the year ended March 31, 2007
(Millions of yen)
Valuation,translation
adjustments andothersShareholders’ equity

Commonstock

Balance at end of priorfiscal year

CapitalsurplusRetained earnings

Capitalreserve

Other retained
earnings
Unappropriatedretained earnings――

30,000762,992―

Total net assets
Total
Unrealized
Treasury stock shareholders’ holding gain on
securities
equity――――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―42―

2ファイル名:

6 Others(1) Production, orders received and sales performance1) Actual production
The following table shows actual production by business segment during each period:
Business segment

Crude oil andnatural gas

For the six months ended
September 30, 2006

Crude oil

43 MMbbls(237 Mbbls per day)

45 MMbbls(248 Mbbls per day)89 MMbbls(243 Mbbls per day)Natural gas

182 Bcf(997 MMcf per day)

201 Bcf(1,099 MMcf per day)

384 Bcf(1,051 MMcf per day)Subtotal

74 MMboe(403 Mboe per day)

79 MMboe(431 Mboe per day)

152 MMboe(418 Mboe per day)Petroleumproducts

133 Mkl(836 Mbbls)

112 Mkl(707 Mbbls)

243 Mkl(1,531 Mbbls)

Iodine257 tons

229 tons

534 tons― millions kWh

55 millions kWh― millions kWh

Electric power
generation
Notes:For the six months ended
September 30, 2007

(Reference)
For the year ended
March 31, 2007

Category

1. The volume of LPG produced overseas 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 material for petroleum products.
3. A portion of crude oil and natural gas production volume is consumed as fuel to generate electricity.
4. The production by the Company’s affiliates accounted for by the equity method is included in the figures
above. Also the production volume is a result for the six months ended September 30 (for the year ended
March 31, 2007) regardless of a closing date on the basis of fiscal periods of its subsidiaries or affiliates.
5. 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 54
MMbbls (297 Mbbls per day) of crude oil, 340 Bcf (1,857 MMcf per day) of natural gas, and in total 111
MMboe (607 Mboe per day).
6. Boe means barrels of oil equivalent.
7. The volume of petroleum products is converted to bbl in parenthesis. Applied coefficient is 6.29 bbls per kl.
8. Iodine is refined on consignment by another company.
9. 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.

― 43 ―

2ファイル名:

3) Actual salesa) In principle, 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 inIndonesia 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 inJapan to customers using our pipeline.
b) Sales by business segment during each period were as follows:(Millions of yen)
(Reference)
For the six months ended
For the six months ended
Business segment Category
For the year ended
September 30, 2006
September 30, 2007
March 31,2007
Crude Oil

41,054 Mbbls 316,751

42,971Mbbls 357,715

179,724 MMcf

202,083 MMcf
170,279

Natural Gas

Crude oil andnatural gas

83,276 Mbbls
366,080 MMcf

332,937

183,560

LPG: 718 Mbbls

607,400

LPG: 755 Mbbls

LPG: 1,351 Mbbls

Others12,894

11,93925,782

Subtotal

499,925553,215966,119

921

958

3,593

500,847

554,173

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 six months ended June 30, 2007 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 for major customers and sales as a percentage of total net sales are as follows:
For the six months ended
For the six months ended
For the year ended
September 30, 2006
September 30, 2007
March 31, 2007
Customers
AmountRatio
Amounts
Ratio
AmountRatio（Millions of yen） （％） （Millions of yen） （％） （Millions of yen） （％）
PERTAMINA
JAPAN ENERGY CORPORATION

146,695

29.3

145,559

26.3

276,121

28.5

―

―

56,834

10.3――― 44 ―

更新日時:11/7/2007 9:46:00 AM

ファイル名:⑦H20.3中間補足データ要約PL(INPEXサブ)

印刷日時:07/11/13 19:14(2) Consolidated Statements of Income of INPEX CORPORATION (Condensed)(Millions of yen)Accounts

For the six months ended
September 30, 2006
(A)
Amounts

For the six months ended
September 30, 2007
(B)
Amounts

Fluctuation(B)-(A)
Amounts

Ⅰ Net sales

457,769

498,42240,652

Ⅱ Cost of sales

152,490

171,221

18,731Gross profit

305,279

327,200

21,921

Ⅲ Exploration expenses

9,126

3,888

(5,237)

Ⅳ Selling, general and administrative
expenses

9,047

15,354

6,307

287,106

307,957

20,851Ⅴ Other income

11,37016,176

4,805

1 Interest income

5,847

5,490

(356)

2 Equity in earnings of affiliates

603

493

(110)

3 Net gain on re-determination of unitized
field

―

3,849

3,849

4 Foreign exchange gain

1,418

4,788

3,370

5 Other

3,500

1,554

(1,946)

Ⅵ Other expenses

12,691

17,6914,999

1 Interest expense

5,485

5,432

(52)

2 Provision for allowance for recoverable
accounts under production sharing

1,510

6,697

5,187

3 Other

5,695

5,561

(134)

Ordinary income

285,784

306,441

20,657

Income before income taxes andminority interests

285,784

306,441

20,657

Income taxes-current

223,442

228,824

5,382

Income taxes-deferred(8,467)(4,060)4,407

Minority interests

5,673

7,407

1,733

Net income

65,137

74,2709,133Operating income― 45 ―

更新日時:11/7/2007 9:46:00 AM

ファイル名:⑧H20.3中間補足データ要約PL(TOCサブ)

印刷日時:07/11/13 19:14(3) Consolidated Statements of Income of Teikoku Oil Co., Ltd. (Condensed)(Millions of yen)
For the six months ended
September 30, 2006
(A)
Amounts

For the six months ended
September 30, 2007
(B)

Fluctuation(B)-(A)

Amounts

Amounts

Ⅰ Net sales

53,43575,45422,018

Ⅱ Cost of sales

28,17638,1409,963

Gross profit

25,25937,314

12,055

239

4,427

4,187

10,456

11,633

1,177

14,563

21,252

6,689

Ⅴ Other income

2,497

6,444

3,947

1 Interest income

234

378

143

2 Equity in earnings of affiliates

174

593

419

3 Net gain on taking effect of explorationand production agreement

―

3,549

3,549

4 Foreign exchange gain

54

―

(54)

5 Other

2,032

1,923

(109)

Ⅵ Other expenses

3,378

2,095

(1,282)

1 Interest expense

420

495

75

2 Provision for allowance for recoverable
accounts under production sharing

289

830

541

3 Foreign exchange loss

―

227

227

2,668

542

(2,125)

Ordinary income

13,68125,602

11,920

Income before income taxes andminority interests

13,68125,602

11,920

Income taxes-current

8,868

10,055

1,187

Income taxes-deferred

(231)

(493)

(262)

Minority interests

162

1,271

1,108

4,882

14,7689,886

Accounts

Ⅲ Exploration expenses
Ⅳ Selling, general and administrative
expenses
Operating income

4 Other

Net income― 46 ―