ファConsolidated Financial Results for the year ended March 31, 2008
May 14, 2008
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 : Tokyo Stock Exchange

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 ofordinary general: June 25, 2008
meeting of shareholders

Scheduled date of payment of cash dividends: June 26, 2008

Scheduled date of filing : June 26, 2008
Financial report(Amounts less than one million yen are rounded off)
1. Consolidated Financial Results for the year ended March 31, 2008 (April 1, 2007-March 31, 2008)(1) Consolidated operating results(The percentage expressions represent the changes from the previous fiscal year)

Net sales
For the year ended
March 31, 2008
March 31, 2007

Operating income

Million yen%

1,202,965
969,71224.1―

714,211559,077

Ordinary income
%

27.7
―

Net income

Million yen

685,799586,262%

Million yen

17.0
―

%

173,245
165,091

4.9―

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

Net income pershare—basic
For the year ended
March 31, 2008
March 31, 2007

Million yen

Yen

Yen

73,510.14
70,423.45

―
―

%

%

%

15.8
17.7

40.2
38.8

59.4
57.7

(Reference): Equity in earnings of affiliates: for the year ended March 31, 2008, ¥ 1,764 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

1,807,900
1,608,106

1,238,812
1,080,016

Total assets
As of March 31, 2008
As of March 31, 2007

Net assets

64.0
64.0

491,168.09
436,467.92(Reference): Net assets excluding minority interests: as of March 31, 2008, ¥ 1,157,370 million
as of March 31, 2007, ¥ 1,028,894 million(3) Consolidated cash flows
For the year ended
March 31, 2008
March 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

363,994
231,981(261,766)(209,243)(45,228)
13,793

222,269
189,416

2. Dividends
Annual cash dividends per share
At 1st half end
For the year ended
March 31, 2007
March 31, 2008
For the year ending
March 31, 2009 (estimated)Yen

At fiscal year end

Total cash dividends(Annual)

Total

Yen

Cash dividends as apercentage of net assets(Consolidated)

Payout ratio(Consolidated)

Yen

Million yen%%―
3,500.00

7,000.00
4,000.00

7,000.00
7,500.00

16,501
17,673

9.9
10.2

1.8
1.6

4,000.00

4,000.00

8,000.00

―

15.7

―

― 1 ―

ファ

3. Estimated Consolidated Operating Results for the year ending March 31, 2009 (April 1, 2008-March 31, 2009)(The percentage expressions represent the changes from the corresponding period of the previous fiscal year)

Net sales
For the six months ending
September 30, 2008
For the year ending
March 31, 2009

Operating income

Ordinary income

Net income pershare

Net income

Million yen%

Million yen%

Million yen%

Yen

541,000(2.4)

320,000(1.8)

302,000(6.1)% Million yen

56,000 (30.9)

23,765.44

1,040,000(13.5)

616,000(13.8)

589,000 (14.1)

120,000 (30.7)

50,925.94

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 the end of the period (including treasury stocks):

as of March 31, 2008; 2,358,410 shares
as of March 31, 2007; 2,358,410 shares
as of March 31, 2008: 2,047 shares
as of March 31, 2007; 1,089 shares

2. Number of treasury shares at the 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 32 “ Per share information” for the basis of calculation of consolidated net income per share.

(Reference) Non-Consolidated Financial Results
1. Financial results for the year ended March 31, 2008 (April 1, 2007-March 31, 2008)(1) Operating results(The percentage expressions represent the changes from the previous fiscal year)

Operating revenues
For the year ended
March 31, 2008
March 31, 2007

Million yen

18,39432,801

Operating income%(43.9)―

15,62430,643

Net income pershare—basic
For the year ended
March 31, 2008
March 31, 2007

Million yen

Ordinary income%(49.0)―Net income

Million yen

15,73830,432%(48.3)―

Million yen%

15,57630,326(48.6)―Net income pershare—diluted
Yen

Yen

6,609.38
12,862.32――(2) Financial position
Total assets
As of March 31, 2008
As of March 31, 2007

Net assets

Million yen

Million yen

812,565
822,786

811,888822,153

Net assets as a percentage of total
assets
%

99.9
99.9

Net assets per shareYen

344,551.68
348,766.27(Reference): Net assets: as of March 31, 2008, ¥ 811,888 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, 2009” 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, and financial and tax schemes may cause actual results to differ from the above forecasts.
Issues relating to the above forecasts are referred to page 3 of the accompanying materials.

― 2 ―1 Results of Operations and Financial Position(1) Results for the year ended March 31, 2008
During this fiscal year, the overall Japanese economy has shown a steady recovery, bolstered by strong global economic growth,
driven by buoyant economies in the United States and China. However, outlook of Japanese economy has greater uncertainty byslowdown of the U.S. economy stemming from the so-called sub-prime loan issue, soaring natural resources prices and appreciationof the yen.
Under the business environment, global crude oil prices, an important factor that affects our group’s businesses, underwent a year of
great change throughout the fiscal year, where WTI (West Texas Intermediate) rose by US$35.64 per bbl. WTI price stored at
US$65.94 per bbl in April, then the price firming up due to political uncertainty in Nigeria and low-level gasoline stock. From
September to December, the price continuously increased due to geopolitical risks such as strengthening of U.S. sanction to Iran,influx of speculative money in the future oil market due to concern of weak dollar and inflation stemming from the sub-prime loan
issue, and then WTI exceeded US$100 per bbl ceiling. After the price setting a record high of US$111.80 per bbl in March, the pricedropped forward the end of the month and closed at US$101.58 per bbl at the fiscal year end. Meanwhile, domestic crude oil andpetroleum products prices followed a similar pattern of global price movements.
The foreign exchange market, an important factor that also affects our group’s businesses, began to trade at the lower end of the 118
yen level and hovered around the lower end of the 120 yen. From early July, due to the sub-prime loan issue becoming surface, dollar
dropped against yen associated with U.S. stock market dropping in value. Amid the concerns of U.S. economy may go recession,
continuous interest rate reduction by FRB caused to close interest spread between U.S. and Japan, and the exchange rate touched 95
yen at one point. Until the fiscal year end, the exchange rate rebound slightly for stronger dollar and as a result TTM closed at 100.20
yen which was 17.89 yen appreciation compared to the fiscal year end of March 31, 2007.
Consolidated net sales for the year ended March 31, 2008 increased by ¥233,252 million, or 24.1%, to ¥1,202,965 million from theprevious fiscal year due to increase in sales prices and sales volume of crude oil and natural gas, despite negative effect ofappreciation of Japanese yen against U.S. dollar. Net sales of crude oil increased by ¥176,064 million, or 29.0%, to ¥783,465 million,
and net sales of natural gas increased by ¥58,153 million, or 17.5%, to ¥391,090 million. Sales volume of crude oil increased by
2,440 Mbbls, or 2.9 %, to 85,716 Mbbls mainly due to increase in production volume at ACG Oil Fields. Sales volume of natural gas
increased by 36,001 MMcf, or 9.8%, to 402,081 MMcf. Sales volume of natural gas produced overseas increased by 21,650 MMcf,
or 6.8%, to 340,235 MMcf mainly due to initiation of natural gas sales at Venezuela, and sales volume of natural gas produced
domestically increased by 385 MM ㎥, or 30.2%, to 1,657 MM ㎥ (61,846 MMcf) mainly due to increase in sales volume for majorclients. The average sales price of crude oil produced overseas increased by US$17.91 per bbl, or 28.8 %, to US$80.07 per bbl.
Meanwhile, the average sales price of natural gas produced overseas increased by US$0.75 per Mcf, or 10.0%, to US$8.26 per Mcf.
The less increase in the average sales price of natural gas produced overseas relative to crude oil was mainly due to lower unit priceof the Venezuela project whose sales are recorded since the current period. By the energy policy of government of Venezuela, natural
gas produced is supplied at lower price for domestic demand for energy. In addition, the average sales price of natural gas produced
domestically increased by ¥0.74, or 2.1%, to ¥35.70 per ㎥. The average exchange rate of Japanese yen against U.S. dollar
appreciated for sales ¥3.19, or 2.7%, to ¥113.71 per U.S. dollar from the previous fiscal year.
The increase of ¥233.2 billion in net sales was derived mainly from the following factors: an increase in sales volume contributed¥48.6 billion and an increase in unit sales price contributed ¥216.6 billion, whereas appreciation of Japanese yen against U.S. dollar
for sales adversely affected ¥31.0 billion and net sales excluding crude oil and natural gas decreased by ¥0.9 billion.
Cost of sales for the year ended March 31, 2008 increased by ¥46,759 million, or 13.6%, to ¥390,554 million mainly due to increasein royalty at ADMA Block owing to increase in sales and increase in expenses for development wells at South Natuna See Block B
and Offshore Mahakam Block. Exploration expenses increased by ¥16,406 million, or 92.7%, to ¥34,095 million. Selling, generaland administrative expenses increased by ¥14,952 million, or 30.4%, to ¥64,104 million mainly due to increase in transportation costof crude oil and depreciation expenses. As a result, operating income increased by ¥155,133 million, or 27.7%, to ¥714,211 million.
Other income decreased by ¥26,989 million, or 44.9 %, to ¥33,089 million due to absence of gain on transfer of mining rights which
recorded in previous fiscal year. Other expenses increased by ¥28,607 million, or 87.0%, to ¥61,501 million mainly due to loss on
valuation of investment securities and increase in provision for allowance for recoverable accounts under production sharing due toincrease in exploration activities at Masela Block. As a result, ordinary income increased by ¥99,536 million, or 17.0%, to ¥685,799
million.
Total amount of current income taxes and deferred income taxes increased by ¥78,110 million, or 18.9%, to ¥491,349 million, andminority interests were ¥21,204 million. As a result of above effects, net income for the year ended March 31, 2008 increased by¥8,154 million, or 4.9%, to ¥173,245 million from 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,
operating income and total assets of all segments. Therefore, the business segment information has been omitted.
On a next fiscal year outlook, consolidated net sales for the six months ending September 30, 2008 are expected to be ¥541.0 billion,
to decrease ¥13.1 billion (2.4%) compared with for the six months ended September 30, 2007, net sales for the year ending March 31,
2009 are expected to be ¥1,040 billion, to decrease ¥162.9 billion (13.5%) compared with for the year ended March 31, 2008.
Operating income for the six months ending September 30, 2008 are expected to be ¥320.0 billion, to decrease ¥5.9 billion (1.8%)
compared with for the six months ended September 30, 2007, operating income for the year ending March 31, 2009 are expected tobe ¥616.0 billion to decrease ¥98.2 billion (13.8%) compared with for the year ended March 31, 2008.
Ordinary income for the six months ending September 30, 2008 are expected to be ¥302.0 billion, to decrease ¥19.6 billion (6.1%)
compared with for the six months ended September 30, 2007, ordinary income for the year ending March 31, 2009 are expected to be¥589.0 billion, to decrease ¥96.7 billion (14.1%) compared with for the year ended March 31, 2008, and net income for the six
months ending September 30, 2008 are expected to be ¥56.0 billion, to decrease ¥25.0 billion (30.9%) compared with for the six
months ended September 30, 2007, net income for the year ending March 31, 2009 are expected to be ¥120.0 billion, to decrease― 3 ―¥53.2 billion (30.7%) compared with for the year ended March 31, 2008.
The reason both sales and income will decrease is mainly due to expecting the rise in the exchange rate of the Japanese yen against
the U.S. dollar compared with this fiscal year.
In these estimates, the crude oil price for the first-half period is assumed to be US$90 per barrel (for Brent crude) and the crude oil
price for the second-half period is assumed to be US$ 80 per barrel (for Brent crude) with the exchange rate of the Japanese yen
against the U.S. dollar at ¥100 through the year ending March 31, 2009.
(2) Financial Position
Consolidated total assets as of March 31, 2008 increased by ¥199,793 million to ¥1,807,900 million from ¥1,608,106 million as ofMarch 31, 2007. Current assets increased by ¥90,986 million to ¥565,110 million mainly due to increase in cash and deposits,
accounts payable-trade and marketable securities. Fixed assets increased by ¥108,807 million to ¥1,242,789 million mainly due toincrease in tangible fixed assets and recoverable accounts under production sharing.
Meanwhile, total liabilities increased by ¥40,997 million to ¥569,088 million from ¥528,090 million as of March 31, 2007. Current
liabilities increased by ¥59,038 million to ¥325,285 million mainly due to increase in overseas income taxes payable. Long-term
liabilities decreased by ¥18,040 million to ¥243,802 million mainly due to decrease in long-term debt.
Net assets increased by ¥158,796 million, to ¥1,238,812 million. Total shareholders’ equity increased by ¥147,391 million, to¥1,164,894 million, total valuation, translation adjustment and others decreased by ¥18,915 million to ¥ (7,524) million and minority
interests increased by ¥30,320 million to ¥81,442 million.
As for cash flows for the year ended March 31, 2008, net cash provided by operating activities increased by ¥132,012 million to¥363,994 million from the previous fiscal year mainly due to increase in sales price and sales volume of crude oil and natural gas.
Meanwhile, net cash used in investing activities increased by ¥52,523 million to ¥261,766 million mainly due to purchases ofinvestment securities, investment in recoverable accounts under production sharing (capital expenditures) and payments forpurchase of tangible fixed assets. Net cash used in financial activities increased by ¥45,228 million (deduction from net cash
provided by financial activities ¥13,793 million at the previous fiscal year) to ¥59,022 million mainly due to repayments oflong-term debt. After deducting ¥24,147 million of the effect of exchange rate changes on cash and cash equivalents, the increase in
cash and cash equivalents at the end of the year ended March 31, 2008 amounted to ¥32,853 million. Cash and cash equivalents at
the end of the year ended March 31, 2008 totaled ¥222,269 million reflecting above net increase of ¥32,853 million from ¥189,416
million at the end of the previous fiscal year.

(3) Dividend Policy and dividends for the year ended March 31, 2008 and for the year ending March 31, 2009
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 Japan and overseas, as well as inmaintenance 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 to maximize corporate value through ongoing maintenance andenlargement of our reserves and production of petroleum and natural gas by affirmative investments, while paying out cash
dividends as direct compensation to shareholders, in light of the medium- to long-term prospects for INPEX Holdings Group.
We decided year-end dividend to be ¥4,000 per share for the year ended March 31, 2008 based on the policy above. With the
mid-term dividend of ¥3,500 per share, thus total dividend for the year is to be ¥7,500 per share
We plan mid-term dividend to be ¥4,000 per share and year-end dividend to be ¥4,000 for the year ending March 31, 2009, and total
dividend for the year is to be ¥8,000 per share.
As to use of retained earnings, we plan to apply the earnings to investments for the purpose of maintenance and enlargement of ourreserves and production of petroleum and natural gas based on the policy described above.

― 4 ―2. Overview of the INPEX Holdings Group
Disclosure of Overview of the INPEX Holdings Group is omitted since there is no significant change in the group from the contentsof the recent financial report.

― 5 ―3. Management Policy
1.
Management Strategy
On April 3, 2006, INPEX CORPORATION and Teikoku Oil Co., Ltd. integrated their businesses, and established a joint
holding company, INPEX Holdings Inc. (the Company). INPEX CORPORATION and Teikoku Oil Co., Ltd. are wholly-owned
subsidiaries of the Company. Our Board of Directors Meeting held on April 28, 2008 decided to undertake an absorption merger
with its wholly owned and consolidated subsidiaries, INPEX CORPORATION and Teikoku Oil Co., Ltd., with October 1, 2008 as
the merger date, and the Company executed an Absorption Merger Agreement with INPEX CORPORATION and Teikoku Oil Co.,Ltd on the same day.
In pursuit of development of petroleum and natural gas which is the fundamental business of the Company, we seek to improve
the productivity and profitability of our existing oil and gas fields in Japan and overseas. At the same time, we are working steadily
and proactively to commercialize undeveloped oil and gas projects, particularly our operator projects. Furthermore, to ensuresustainable growth from the medium- to long-term perspective, we are leveraging to the maximum our substantially strengthened
ability to obtain upstream interests as a consequence of the business integration by building a more balanced asset portfolio, further
strengthening our solid financial base, and mobilizing our practical operational and technical capabilities. By maintaining andincreasing our reserves and production of petroleum and natural gas, we will endeavor to secure stable profits over the medium tolong term and to achieve enhanced corporate value over time.
2.

Medium-to Long Term Management Key Initiatives
The key management initiatives for the Company in developing petroleum and natural gas resources is achieving sustainablegrowth by maintaining and expanding reserves through reinvesting the cash flow obtained from existing oil and gas fields. By
combining overseas projects that promise high growth potential due to expansion of reserves with domestic projects without theattendant country risk and foreign currency risk, we are seeking qualitative improvements in our asset portfolio. At the same time,by leveraging our business resources more effectively through an organic linkage of our overseas assets and domestic
infrastructure, we aim to further enhance corporate value.
With the tougher conditions associated with acquiring resources overseas, we continuously effort to ensuring long-term growththrough the business integration.
We will continue to move forward with exploration and development in new and existing projects such as the Masela Block(Abadi) gas project in Indonesia and the WA-285-P (Ichthys) gas and condensate project in Australia, the Abu Dhabi offshore oilfields in the UAE and Kashagan and ACG fields in the Caspian Sea. Domestically, we are working to increase the scale of our
natural gas business permanently by optimal application from natural gas assets in overseas to domestic supply infrastructure
including the planed LNG receiving terminal in the Naoetsu Port. Since we anticipate continuous substantial investment in orderto achieve the growth strategy of the Company, we must take all possible measures to raise the capital required.

We will undertake operations according to the following policies in order to implement the business strategy of the Company.
(1) Achieve Well Balanced Asset Portfolio① Regional Diversification
Through business integration, the operating area of the Company has diversified to include Asia, Oceania, the Middle East,
the Caspian Sea, Central and South America, and Africa, besides Japan, and the regional balance of our asset portfolio has
improved significantly. However, we recognize the need to reduce our dependence on specific regions from the viewpoint ofcountry and operating risks, and we will continue to be proactive in considering investment in other new promising areas.
② Balance between Crude Oil and Gas
In terms of output by products, the share of crude oil is about 60% compared with about 40% for natural gas as a result of
business integration.
Since crude oil is a commodity highly sensitive to various factors, the selling price fluctuates in the marketplace. On theother hand, the term of sales contract with customers are for a short period(one year), the required investment for production
and transportation facilities is relatively small and the development period is comparatively short compared with the natural
gas projects. Accordingly, profitability can be achieved comparatively soon after discovery in the case of oil fields.
Commercial production of natural gas requires substantial investments and a long lead time of preparation for constructing
liquefaction plants and pipelines. Because the buyer also must make large investments in LNG receiving facilities, stable andlong-term sales contracts are essential. With an assurance of long term LNG supply to the customers, profitability can be
maintained.
Regarding a new project, we focus on a balance between crude oil and natural gas to ensure efficient investment with aview to long-term cash flow.
③ Balancing the Project Phases among Exploration, Development and Production
Because crude oil and gas reserves are limited, we continuously seek to acquire new reserves in order to ensure stableprofitability. Therefore, we reinvest in exploration to discover new reserves while maintaining our cash flow from production.
Projects must be carried out continuously in order to allocate and balance our assets among exploration, development andproduction stages. To achieve this balance, we invest in exploration and undeveloped oil and gas assets.
④ Enhance Activities and Capabilities as an Operator
In acting as an operator, we face managerial issues such as the difficulty in securing manpower and the heavy burden offinancing. However, involvement as an operator also increases our opportunities to obtain new working interests byimproving our technical capabilities and winning recognition from oil and gas producing countries and international oil
campaniles. The Company is pursuing opportunities to act as operator with the substantially enhanced technical capabilities― 6 ―resulting from business integration, while addressing the effective utilization of management resources.
⑤ Balancing Contractual Arrangements
We intend to diversify the risk of oil price volatility by balancing contractual arrangements among production sharing
contracts, or concession contracts, for which profit is linked to the price of oil, with service contracts, such as buyback or fixedmargin contracts, for which profitability is less influenced by oil prices and amounts are fixed.
(2) Investments through Acquisition relative to the Expiration of Working Interests
The production sharing contract for the offshore Mahakam area, which is the Company’s major gas production project,
expires in 2017. Although we will negotiate to extend the contract, production is expected to decline in the long term as theremaining reserves decline even if the contract is renewed. We intend to maintain and increase production beyond 2017 byacquiring obtaining working interests from other companies or participating in new projects or taking over companies that havesubstantial production and stable cash flow.
(3) Enlarging the Company’s Business Domain through Organic Linkage of Domestic and Foreign Assets
The Company aims to expand operations in the domestic natural gas market, which represents a stable base of earnings that is
expected to grow. As well as building a natural gas pipeline network to supply the promising market in the Kanto-Koshinetsu
region, we plan to expand production in the key Minami Nagaoka gas field. We also own promising undeveloped assets,
primarily natural gas, in Indonesia and Australia, and to ensure their long-term growth, we will consider the possibilities of gas
business integration that organically links these overseas gas assets with our domestic infrastructure, in aggressive pursuit of anenlarged business domain.
(4) Strengthening Relationships with Leading Domestic and International Oil and Gas Companies
Developing petroleum and gas involves considerable risks. Large-scale projects in particular require huge investments,
presenting an insuperable obstacle for a single company. Typically, several companies form a consortium to share the risk, andthis is the case internationally too. The Company plans to expand its business and diversify risk by increasing opportunities forparticipation in projects through enhanced cooperation with the major international oil companies, the national oil companies ofoil and gas producing countries and leading private oil resource developers, trading companies and other energy-relatedcompanies.
(5) Promote an Efficient and Transparent Corporate Management
The Company bears the heavy responsibility of assuring a stable supply of energy to Japan in an efficient manner.
Consequently, we recognize not only that our corporate social responsibility is increasing but also that it is essential that we
exercise sensitivity in conducting business in communities in Japan and around the world. Therefore, we intend to manage ourbusiness efficiently and transparently in line with global standards.
(6) Environmental Efforts
Environmental issues, particularly global warming, are a matter of worldwide concern. We make every effort to minimize theeffects on surrounding areas when we explore, develop, produce and sell energy resources. Also we are working to reduce ourgreenhouse gas emission reduction unit, reduce emissions of chemical substances, suppress emissions into the atmosphere andriver systems, and to take measures to prevent soil pollution and reduce waste. Combustion of natural gas involves relatively
small emissions of CO2 and NOx compared with combustion of other fossil fuels. Positioning natural gas as our core business,
we intend to further promote the use of this clean fuel.
(7) Development of New Business
New technologies such as GTL (Gas to Liquids) and DME (Dimethyl Ether) produce synthesizing liquid fuel as oil substituteform by reforming natural gas at normal temperature. Their environmental benefits have attracted attention because the GTL
products contain almost no pollutants. As the Company has large reserves of natural gas, we are participating in R&D projects
for GTL and DME. Introduction of these new technologies is considered in our plans to develop a new gas fields.
In order to supply energy in a stable and efficient manner and thereby contribute to the good of society, the Company aims tomaintain and expand its reserves and production by rapidly achieving synergy through business integration between INPEX and
Teikoku Oil. We will seek to allocate our business resources optimally and maintain the soundness of our financial position witha view to securing steady growth.
In addition, to fulfill our corporate social responsibility, we will strengthen corporate governance and compliance, and carryout strict safety management throughout our operations. Recognizing our obligation to protect the environment and to become
an integral part of the communities where we operate, we aim to improve our corporate value over the long term.

― 7 ―更新日時:5/12/2008 10:31:00 AM

ァイル名:③H20.3_BS

印刷日時:08/05/16 19:34

4 Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen, %)Accounts(Assets)
Ⅰ Current assets
1 Cash and deposits
2 Accounts receivable-trade
3 Marketable securities
4 Inventories
5 Deferred tax assets
6 Accounts receivable-other
7 Other
Allowance for doubtful accounts
Total current assets
Ⅱ Fixed assets
1 Tangible fixed assets *1,3,4,5(1) Buildings and structures(2) Wells(3) Machinery, equipment and vehicles(4) Land(5) Construction in progress(6) Other
Total tangible fixed assets
2 Intangible assets *4(1) Goodwill(2) Exploration and development rights(3) Mining rights(4) Other
Total intangible assets
3 Investments and other assets(1) Investment securities *2,3
(2) Long-term loans receivable(3) Recoverable accounts under
production sharing(4) Deferred tax assets(5) Other *2
Allowance for doubtful accounts
Allowance for recoverable accounts
under production sharing
Allowance for investments in
exploration
Total investments and other assets
Total fixed assets
Total assets

As of March 31, 2007
(A)

As of March 31, 2008
(B)

Fluctuation(B)-(A)

Amounts

Amounts

Amounts

Ratio

194,278
81,95455,586
13,254
17,242
81,68830,129(11)474,123

103,091
17,59744,35628,31022,5053,366
219,227
132,105
127,1104,364
2,240
265,82129.5

204,596
120,948
115,730
19,716
11,236
83,4369,504(58)565,11031.3

90,98613.6

112,291
19,89349,001
28,38628,72016,187
254,48114.0

35,253

16.5

121,644
120,176
18,843
4,815
265,480

14.7

(340)

40.0
68.7
100.0

73,893
108,807
199,793354,851
3,388

360,726
9,361

319,149

383,162―
34,879(1,869)20,61831,279(911)(51,190)(71,445)(10,273)(9,963)648,934
1,133,982
1,608,106

40.4
70.5
100.0

― 8 ―

Ratio

722,827
1,242,789
1,807,900

更新日時:5/12/2008 10:31:00 AM

ァイル名:③H20.3_BS

印刷日時:08/05/16 19:34(Millions of yen, %)Accounts

As of March 31, 2007
(A)

As of March 31, 2008
(B)

Fluctuation(B)-(A)

Amounts

Amounts

Amounts

Ratio

Ratio

(Liabilities)
Ⅰ Current liabilities
1 Accounts payable-trade
2 Short-term loans *3
3 Income taxes payable
4 Accounts payable-other *3
5 Provision for exploration projects
6 Accrued bonuses to officers
7 Other
Total current liabilities
Ⅱ Long-term liabilities
1 Long-term debt *3
2 Deferred tax liabilities
3 Accrued retirement benefits toemployees
4 Accrued retirement benefits toofficers
5 Liabilities for site restoration anddecommissioning costs
6 Liabilities for losses ondevelopment activities
7 Accrued special repair andmaintenance
8 Other *3
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

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

16.5

22,582
19,274
131,523
111,505
10,786208
29,404
325,285

198,320
38,994

174,81344,296

8,371

8,645

1,712

475

11,93012,728

1,964

1,964

179

229

18.0

59,038370
261,843
528,090

16.3
32.8

649
243,802569,08813.5
31.5(18,040)
40,99730,000418,491
570,120(1,108)1,017,503

1.9
26.0
35.5
(0.1)
63.3

30,000418,493
718,616(2,215)
1,164,894

1.7
23.1
39.7
(0.1)
64.4

―
2
148,496(1,106)
147,391

9,348

0.6

(7,468)(0.4)(16,816)

17

0.0

3

0.0

(14)

2,025

0.1

(60)

(0.0)

(2,085)

11,391

0.7(7,524)(0.4)(18,915)

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

3.2
67.2
100.0

81,442
1,238,812
1,807,900

4.5
68.5
100.0

30,320158,796
199,793― 9 ―10ァイル名:③H20.3_PL

更新日時(2) Consolidated Statements of Income(Millions of yen, %)For the year ended March 31, 2007
(A)

Accounts

Amounts

Ratio

For the year ended March 31, 2008
(B)
Amounts

Ratio

Fluctuation(B) - (A)Amounts

Ⅰ Net sales

969,712100.0

1,202,965

100.0

233,252

Ⅱ Cost of sales

343,79435.5

390,55432.5

46,759Gross profit
Ⅲ Exploration expenses

625,918

64.5

812,41067.5

186,492

34,095

2.8

16,406

1 Exploration expenses

17,7802 Exploration subsidies
Ⅳ Selling, general andadministrative expenses
Operating income
Ⅴ Other income

(91)
*1,2

34,457(362)

17,6881.8

49,1525.0

64,104

5.3

14,952559,07757.7

714,21159.4

155,133

33,0892.7(26,989)

1 Interest income

12,843

10,9842 Dividend income
3 Equity in earnings ofaffiliates
4 Gain on transfer of mining
rights5 Net gain on redetermination of unitized *3field
6 Net gain on taking effect of
exploration and*4production agreement
7 Foreign exchange gain
8 Other

2,291

5,439

1,349

1,764

33,533

―

―

4,005

―

3,481

5,738
4,322

60,079

6.1

2,747
4,666

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

12,38910,887

6,176

20,586

2,973

3,104

―

21,34911,355432,894(19,655)

32,893

3.4

61,501

5.1

28,607586,262

60.4

5,572

685,799

57.0

99,536586,26260.4

685,799

57.0

99,536413,23942.6

491,349

40.8

78,1101.8

13,272

14.4

8,154

496,852(5,502)

7,932

0.8

21,204

165,09117.0

173,245― 10 ―

更新日時:5/12/2008 10:33:00 AM

ファイル名:④H20.3_a連結変動計算書

印刷日時:08/05/16 19:35(3) Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2007
（Millions of yen）
Shareholders’ equity

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

Common stock

Capital surplus

Retained earnings

Treasury stock

―

―

―

―

Total
shareholders’equity―30,000415,892

415,734(19,641)

841,985(1,724)
20,257(10,559)(146)
165,091(1,724)22,856(1,108)(1,108)1,017,503
1,017,503(10,559)(146)
165,091
2,598

30,00030,000418,491
418,491

570,120
570,120

Valuation, translation adjustments and others
Unrealized
Unrealized gain
holding gain
Translationfrom hedging(loss) on
adjustments
instruments
securities

Total
valuation, Minority interests
translation
adjustments
and others

Total net assets

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.

―11―更新日時:5/12/2008 10:33:00 AM

ファイル名:④H20.3_a連結変動計算書

印刷日時:08/05/16 19:35

For the year ended March 31, 2008
（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
Changes in items other thanthose in shareholders’ equity(net)
Total changes during the period
Balance as of March 31, 2008

Common stock

Capital surplus

Retained earnings

Treasury stock

30,000418,491

570,120(1,108)

Total
shareholders’equity1,017,503(1,159)52(24,749)
173,245(1,159)54(1,106)(2,215)

147,391
1,164,894(24,749)
173,2452―
30,0002
418,493

148,496
718,616

Valuation, translation adjustments and others
Unrealized
Unrealized gain
holding gain
Translationfrom hedging(loss) on
adjustments
instruments
securities

Balance as of March 31, 2007
Changes during the period
Cash dividends paid
Net income
Purchase of treasury stock
Disposal of treasury stock
Changes in items other thanthose in shareholders’ equity(net)
Total changes during the period
Balance as of March 31, 2008

9,348

17

2,025

Total
valuation, Minority interests
translation
adjustments
and others

11,391

51,121

Total net assets

1,080,016(24,749)
173,245(1,159)54(16,816)(14)(2,085)(18,915)

30,32011,404(16,816)(7,468)(14)
3(2,085)(60)(18,915)(7,524)30,32081,442

158,796
1,238,812―12―

ファイル名:④H20.3_CF更(4) Consolidated Statements of Cash Flows

Accounts

For the year ended
March 31, 2007
(A)
Amounts(Millions of yen)
For the year ended
Fluctuation
March 31, 2008
(B)-(A)(B)
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

586,262
30,5996,977

685,799
36,181
6,616

6,080

21,206

3,038

3,937

Provision for accrued retirement benefits to employee

845

275

Provision for site restoration and decommissioning costs

1,214

815

1,376

(2,376)(15,134)(16,423)

Interest expense

12,38910,887

Foreign exchange loss (gain)(1,652)

1,035

Equity in earnings of affiliates(1,349)(1,764)Gain on transfer of mining rights(33,533)

―

2,613

15

Other provisions
Interest and dividend income

Loss on the sales of investment securities
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―

21,349(10,385)(39,392)

105,949

92,147(18,955)(26,052)(8,085)(2,274)

Accounts payable-trade

(879)

481

Accounts receivable-other―(16,985)

Accounts payable-other―

21,809Advances received
Other
Subtotal―

10,351(3,810)7,156

663,561

814,795

Interest and dividends received

20,55917,514

Interest paid

(11,993)(11,507)

Income taxes paid

(440,146)(456,806)

231,981363,994

Net cash provided by operating activities― 13 ―

151,233

132,012

ファイル名:④H20.3_CF

更Accounts

For the year ended
March 31, 2007
(A)
Amounts(Millions of yen)
For the year ended
Fluctuation
March 31, 2008
(B)-(A)(B)
Amounts

Amounts

Ⅱ Cash flows from investing activities
Increase in time deposits(17,078)(2,764)

Decrease in time deposits

2,797

18,996

Payments for purchases of marketable securities(5,140)(39,948)

Proceeds from sales of marketable securities

23,64351,494

Payments for purchases of tangible fixed assets(37,844)(59,465)955

182

Proceeds from sales of tangible fixed assets
Payments for purchases of intangible assets(1,778)(2,012)

Payments for purchases of investment securities(109,823)(112,378)

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

43,609104(111,313)(131,059)(6,523)

10,534Long-term loans made(832)

(7,452)

Collection of long-term loans receivable

888

526

Payments for purchase of mining rights―(15,886)

Proceeds from transfer of mining rights

6,707

27,890

Other

2,490

(529)

(209,243)(261,766)

Net cash used in investing activities(52,523)

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

(120)

(50)

Proceeds from long-term debt
Repayments of long-term debt

30,08340,784(38,661)(67,745)

Proceeds from minority interests for additional shares

3,606

8,344

Purchase of treasury stock(1,169)(1,104)

Proceeds from sales of treasury stock

22,397―

Cash dividends paid

(10,791)(24,718)

Dividends paid to minority shareholders

(81)

(737)

Stock transfer payment

(867)

(0)

Restricted cash deposit

9,400

―

13,793(45,228)(59,022)

1,741(24,147)(25,888)

38,27332,853(5,420)151,143

189,416

38,273

222,269

32,853

Net cash (used in) provided by financing activities
Effectof exchange rate changes on cashⅣand cash equivalents
Ⅴ Net increase in cash and cash equivalents
Ⅵ Cash and cash equivalents at beginning of the period
Ⅶ Cash and cash equivalents at end of the period *1

189,416― 14 ―

更新日時:5/13/2008 3:56:00 PM

ファイル名:④H20.3_d連結会計方針

印刷日時:08/05/16 19:37(5) Basic of Presenting Consolidated Financial Statements
For the year ended
March 31, 2007
1.Scope of consolidation
Number of consolidated subsidiaries: 60

For the year ended
March 31, 2008
1.Scope of consolidation
Number of consolidated subsidiaries: 60

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

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

During this period:
Number of new companies included in consolidated
subsidiaries:
5

During this period:
Number of new companies included in consolidated
subsidiaries:
3
Number of companies excluded from consolidated
subsidiaries:
3

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

Details for the above changes:(1) Teikoku Oil Suriname, Co., Ltd., Teikoku Oil
Cabinda Co., Ltd., and INPEX UK Ltd. havebeen included due to establishment of thecompanies.
(2) Teikoku Oil Company Panama, S.A., INPEX
Offshore South Sulawesi, Ltd., and Teikoku Oil
Venezuela, B.V. have been excluded due tocompletion 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 from consolidation)
Those companies are not consolidated because their
total assets, total net sales, total net income (theequity portion) and total retained earnings (theequity portion) do not have significant impact on the
consolidated financial statements.

(Reason for exclusion from consolidation)
Same as on the left

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

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:14

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 JAPAOPETROLEO LTDA, INPEX Offshore North
Campos, Ltd.

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

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

Details for the above changes:(1) Petroguarico, S.A. has been included due toestablishment of the company.
(2) Dai-ichi Petroleum Development Co., Ltd. has
been excluded due to completion of liquidation.

Detail for the above change:
MI Berau Japan Ltd. has been included due tosubscription to capital.

― 15 ―

更新日時:5/13/2008 3:56:00 PM

ファイル名:④H20.3_d連結会計方針

印刷日時:08/05/16 19:37

For the year ended
March 31, 2007

For the year ended
March 31, 2008

Names of major affiliates not accounted for by theequity 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 theequity method:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de
Burgos, S.A. de C.V., Telnite Co., Ltd., Tangguh
project management Co., Ltd.

(Reason for not applying the equity method)
Subsidiaries and affiliates are not accounted for by
the equity method because their total net income (theequity portion) and total retained earnings (theequity portion) do not have significant impact on the
consolidated financial statements.

(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:

Regarding affiliates accounted for by the equity
method having a different closing date from theconsolidated 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 forconsolidation purposes as of the consolidated
closing date.

Same as on the left

― 16 ―

更新日時:5/13/2008 3:56:00 PM

ファイル名:④H20.3_d連結会計方針

印刷日時:08/05/16 19:37

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

For the year ended
March 31, 2008
3. Closing dates for the fiscal year of consolidated
subsidiaries

For the 39 companies for which the closing datediffered from the consolidated closing date,including, but not limited to, INPEX Sahul, Ltd.,INPEX Browse, Ltd., and INPEX Masela, Ltd., weused the financial statements for the year ended
December 31. However, the necessary adjustments
have been made to the financial statements of thosecompanies to reflect any significant transactions
made between the Company’s closing date and thoseof the consolidated subsidiaries.
For the 11 companies including, but not limited,Japan Oil Development, Co., Ltd., Teikoku Oil D.R.
Congo, Co., Ltd., INPEX Southwest Caspian Sea,
Ltd., and INPEX North Caspian Sea, Ltd., we usedfinancial statements for the year ended theconsolidated closing date even though their closing
date is December 31.

For the 40 companies for which the closing datediffered from the consolidated closing date,including, but not limited to, INPEX Sahul, Ltd. and
INPEX Masela, Ltd., we used the financial
statements for the year ended December 31.
However, the necessary adjustments have been madeto the financial statements of those companies toreflect any significant transactions made between the
Company’s closing date and those of the consolidated
subsidiaries.
For the 10 companies including, but not limited,Japan Oil Development, Co., Ltd., Teikoku Oil D.R.
Congo, Co., Ltd., INPEX Southwest Caspian Sea,
Ltd., and INPEX North Caspian Sea, Ltd., we usedfinancial statements for the year ended theconsolidated closing date even though their closing
date is December 31.
(Additional information)
Until the year ended March 31, 2007, INPEX Browse,
Ltd. had been consolidated on the basis of fiscal
period ended December 31, which differs from that of
the Company. Effective the year ended March 31,
2008, its financial statements prepared forconsolidation purpose as of the consolidation closing
date has been used due to increase in its materiality.
Accordingly, the consolidated operating results for theyear ended March 31, 2008 included operating resultsfor 15 months from January 1, 2007 to March 31,
2008.
The effect of this change does not have a significant
impact on the consolidated financial statements.

4. Accounting policies
1) Valuation method for significant assets(a) Securities
Other securities
With a determinable market value

4. Accounting policies
1) Valuation method for significant assets(a) Securities
Other securities
With a determinable market value

Other securities with a determinable market value
are stated at fair value with any changes in
unrealized holding gain or loss, net of theapplicable income taxes, included directly in net
assets. Cost of securities sold is determined by
the moving-average method.

Same as on the left

Without a determinable market value

Without a determinable market value
Same as on the left

Other securities without a determinable market
value are stated at cost determined by themoving-average method.
(b) Inventories
Products
Carried mainly at the lower of cost or market,
cost being determined by the moving-averagemethodSupplies
Carried mainly at cost, determined by themoving-average method
Work in process
Carried at cost, determined by the individual
cost basis(b) Inventories
Products
Same as on the left

― 17 ―

Supplies
Same as on the left
Work in process
Same as on the left

更新日時:5/13/2008 3:56:00 PM

ファイル名:④H20.3_d連結会計方針

印刷日時:08/05/16 19:37

For the year ended
March 31, 2007
2) Depreciation method of significant depreciable
assets(a) Tangible fixed assets
Depreciation of mining facilities is mainlycomputed by the unit-of-production 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).

For the year ended
March 31, 2008
2) Depreciation method of significant depreciable
assets(a) Tangible fixed assets
Depreciation of mining facilities is mainlycomputed by the unit-of-production 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(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 atthe production stage are amortized by the unit-ofproduction method.
Mining rights
Mining rights are mainly amortized by the unit-ofproduction method.
Other
Other intangible assets are mainly amortized by thestraight-line method.
Software for internal use is being amortized over
five years.

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

3) Basis for significant allowances(a) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at
an amount determined based on the historicalexperience of bad debt with respect to ordinary
receivables, plus an estimate of uncollectible
amounts determined by reference to specificdoubtful receivables from customers which areexperiencing financial difficulties.

3) Basis for significant allowances(a) Allowance for doubtful accounts
Same as on the left

― 18 ―(Changes in accounting policy)
As for tangible fixed assets acquired on and after
April 1, 2007, the Company and certain
subsidiaries have changed the depreciation
method based on an amendment in corporation
tax law.
This change does not have significant impact
on the consolidated financial statements.
(Additional information)
As for other tangible fixed assets whose bookvalue reached their residual value, the Company
and certain subsidiaries depreciates the residual
value equally over 5 years in accordance withthe method prescribed in amendment incorporation tax law.
This change does not have significant impact on
the consolidated financial statements.

Mining rights
Same as on the left
Other
Same as on the left

更新日時:5/13/2008 3:56:00 PM

ファイル名:④H20.3_d連結会計方針

For the year ended
March 31, 2007(b) Allowance for recoverable accounts under
production sharing
Allowance for recoverable accounts under
production sharing is provided for probablelosses on specific investments made under
production sharing contracts.
(c) Allowance for investments in exploration
Allowance for investments in exploration isprovided for future potential losses oninvestments in exploration companies at an
estimated amount based on the net assets of theinvestees.
(d) Provision for exploration projects
Provision for exploration projects is provided for
future expenditures of consolidated subsidiaries
at exploration stage based on schedule ofinvestments in exploration.
(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at
expected payment amount for the year ended
March 31, 2007.
(f) Accrued retirement benefits to employees
Accrued retirement benefits to employees areprovided at the amount calculated based on the
expected retirement benefit obligation and theestimated value of pension plan assets at the end of
this period. Because certain subsidiaries areclassified as small enterprises, we employ asimplified method (at the amount which would be
required to be paid if all active employees
voluntarily terminated their employment as of thebalance sheet date) for the calculation of theretirement benefit obligation of the subsidiaries.
Actuarial gains and losses are charged or credited
to income as incurred.
(g) Accrued retirement benefits to officers
Accrued retirement benefits to officers are statedat the amount which would be required to be
paid as if all officers voluntarily terminated theirservices as of the balance sheet date based on
their respective internal rules.
(h) Liabilities for site restoration anddecommissioning costs
Liabilities for site restoration anddecommissioning costs are provided for expected
future costs for site restoration anddecommissioning.
(i) Liabilities for losses on development activities
Liabilities for losses on development activities areprovided for provable losses on oil and natural gas
development activities individually estimated foreach project.
(j) Accrued special repair and maintenanceAccrued special repair and maintenance areprovided for planned major repair andmaintenance activities on tanks in certain
subsidiaries at the amount being accumulated
through the next activity.

― 19 ―

印刷日時:08/05/16 19:37

For the year ended
March 31, 2008(b) Allowance for recoverable accounts under
production sharing
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(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at
expected payment amount for the year ended
March 31, 2008.
(f) Accrued retirement benefits to employees
Same as on the left(g) Accrued retirement benefits to officers
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(j) Accrued special repair and maintenanceSame as on the left

更新日時:5/13/2008 3:56:00 PM

ファイル名:④H20.3_d連結会計方針

For the year ended
March 31, 2007
4) Translation of consolidated subsidiaries’
significant assets and liabilities denominated inforeign currencies into yen in preparation of theconsolidated financial statements
Monetary assets and liabilities denominated inforeign currencies are translated into yen at theexchange rates prevailing at the balance sheet
date. The resulting exchange gain or loss iscredited or charged to income.

印刷日時:08/05/16 19:37

For the year ended
March 31, 2008
4) Translation of consolidated subsidiaries’
significant assets and liabilities denominated inforeign currencies into yen in preparation of theconsolidated financial statements
Same as on the left

The revenue and expense accounts of theoverseas subsidiaries are translated into yen at
the average rates of exchange during theperiod. The balance sheet accounts aretranslated into yen at the rates of exchange in
effect at the balance sheet date. Translationdifferences are presented as a component oftranslation adjustments and minority interests.
5) Accounting for important leases
Non-cancelable finance leases are primarily
accounted for as operating leases except thatlease agreements which stipulate the transferof ownership of the leased assets to the lessee
are accounted for as finance leases.
6) Accounting for major hedge transactions(a) Hedge accounting
Simplified accounting method is applied tointerest rate swaps. For certain equity
accounted companies, deferred hedge
accounting is adopted.
(b) Hedging instruments and hedged items
Hedge instruments: Interest rate swap
transactions
Hedged items: Interest payments on
borrowings(c) Hedging policy
The nominal amount of the derivativetransaction is limited to within the scope of
actual demand, and the Company does notengage in speculative derivativetransactions.
(d) Hedge effectiveness assessment method
Since simplified accounting method isapplied, the Company does not performhedge effectiveness assessment.

― 20 ―

5) Accounting for important leases
Same as on the left

6) Accounting for major hedge transactions(a) Hedge accounting
Same as on the left(b) Hedging instruments and hedged items
Same as on the left(c) Hedging policy
Same as on the left(d) Hedge effectiveness assessment method
Same as on the left

更新日時:5/13/2008 3:56:00 PM

ファイル名:④H20.3_d連結会計方針

印刷日時:08/05/16 19:37

For the year ended
March 31, 2007

For the year ended
March 31, 2008

7) Other items important to the preparation of theconsolidated financial statements(a) Consumption tax
Transactions subject to the consumption
tax are recorded at amounts exclusive of
the consumption tax.
(b) Recoverable accounts under production
sharing
Cash investments made by the Company
during exploration, development andproduction phases under a production
sharing contract and a service contract(buyback arrangement) are recorded as“Recoverable accounts under production
sharing” so long as they are recoverable
under the terms of the relevant contract.
When the Company receives the natural
gas and crude oil in accordance with thecontract, an amount corresponding to thepurchase costs of the products (i.e., a cost
recovery portion of the investments) isreleased from this account.

7) Other items important to the preparation of theconsolidated financial statements(a) Consumption tax
Same as on the left

5. Valuation of assets and liabilities of consolidated
subsidiaries
The assets and liabilities of consolidated
subsidiaries are valued at their fair values.
However, those whose valuation difference is notmaterial are valued at their carrying amounts.

5. Valuation of assets and liabilities of consolidated
subsidiaries
Same as on the left

6. Amortization of Goodwill
Goodwill is amortized using a straight-line
method over 20 years.

6. Amortization of Goodwill
Same as on the left

7. Scope of cash and cash equivalents in consolidated
statement of cash flow
Cash (cash and cash equivalents) in the
consolidated statement of cash flow consisted of
cash on hand, cash in banks which can bewithdrawn on demand, and short-term
investments with a maturity of three months orless when purchased which can easily beconverted to cash and are subject to little risk ofchange in value.

7. Scope of cash and cash equivalents in consolidated
statement of cash flow
Same as on the left(b) Recoverable accounts under production
sharing
Same as on the left

― 21 ―

更新日時:5/13/2008 3:56:00 PM

ファイル名:④H20.3_d連結会計方針

印刷日時:08/05/16 19:37(Changes in Presentation)
For the year ended
March 31, 2007

For the year ended
March 31, 2008
(Consolidated Balance Sheets)“Deferred tax assets”, previously included in“Other” investments and other assets is separately
presented because its amount exceeded 1% of total
assets. The amount of “Deferred tax assets” as ofMarch 31, 2007 is ¥2,405 million.
(Consolidated Cash Flows)“Accounts receivable-other”, “Accounts payableother” and “Advances received” previously
included in “Other” cash flows from operating
activities are separately presented due to increasein their materiality. The amount of “Accounts
receivable-other” is ¥(6,617) million, “Accounts
payable-other” is ¥24,210 million and “Advances
received” is ¥(2,650) million for the year ended
March 31, 2007, respectively.

― 22 ―

更新日時:5/14/2008 1:42:00 PM

ファイル名:④H20.3e連結BSPLCF注記

印刷日時:08/05/16 19:37(6) Notes(Consolidated balance sheets)
As of March 31, 2007

As of March 31, 2008

*1 Accumulated depreciation
Accumulated depreciation of tangible fixed assets is¥454,161 million.

*1 Accumulated depreciation
Accumulated depreciation of tangible fixed assets is¥447,121 million.

*2 The Company has the following investments in
subsidiaries and affiliates:*2 The Company has the following investments in
subsidiaries and affiliates:

Investment securities (equities): ¥29,084 million
Other (investments and other assets) : ¥924 million

Investment securities (equities): ¥36,583 million
Other (investments and other assets) : ¥1,124 million*3. Assets provided as collateral and collateral-backed debt
are as follows:(Collateralized Assets)
Millions of yen
Buildings and structures
2,180(1,652)
Wells
36
(36)
Machinery, equipments
8,748(8,748)and vehicles
Land
1,826
(660)
Others (tangible fixed
0(0)
assets)Investment securities
9,998
(－)

*3. Assets provided as collateral and collateral-backed debt
are as follows:(Collateralized Assets)
Millions of yen
Buildings and structures
2,446(1,962)
Wells
3,166(3,166)
Machinery, equipments
10,058(10,058)
and vehicles
Land
1,826
(660)
Others (tangible fixed
0(0)
assets)Investment securities
6,512
(－)

Total
(Secured debt)
Short-term loans
Accounts payable-other
Long-term debt
Others (long-term
liabilities)
Total

22,790(11,097)

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

20,864(19,481)

Total(Secured debt)
Short-term loans
Accounts payable-other
Long-term debt
Others (long-term
liabilities)
Total

24,010(15,848)

95
3,723
13,21816(－)(3,207)(12,411)(－)

17,054(15,618)* Amounts in parenthesis () above represent foundation
collateral and liabilities.
In addition, investment securities of ¥7,208 million arepledged as collateral for the BTC pipeline project
financing.

* Amounts in parenthesis () above represent foundation
collateral and liabilities.
In addition, investment securities of ¥6,907 million arepledged as collateral for the BTC pipeline project
financing.

*4 Accumulated advanced depreciation deducted fromacquisition costs of fixed assets related to contribution
and others was ¥1,374 million for building andstructures, ¥291 million for machinery, equipment andvehicles, and ¥1 million for others (intangible assets).

*4 Accumulated advanced depreciation deducted fromacquisition costs of fixed assets related to contribution
and others was ¥1,374 million for building and structures,¥291 million for machinery, equipment and vehicles, and¥1 million for others (intangible assets).

*5 Accumulated advanced depreciation deducted fromacquisition costs of tangible fixed assets related to gain
on insurance policies was ¥2 million for others (tangible
fixed assets).

*5

―23―

更新日時:5/14/2008 1:42:00 PM

ファイル名:④H20.3e連結BSPLCF注記

印刷日時:08/05/16 19:37

As of March 31, 2007

As of March 31, 2008

6 Contingent liabilities
The Company and its consolidated subsidiaries arecontingently liable as guarantors of indebtedness of thefollowing companies:

6 Contingent liabilities
The Company and its consolidated subsidiaries arecontingently liable as guarantors of indebtedness of thefollowing companies:

Tangguh Trustee*
Sakhalin Oil and Gas
Development Co., Ltd.
Japan Ohanet Oil & Gas Co.,Ltd.
ALBACORA JAPAOPETROLEO LIMITADA
Sakata Natural Gas Co., Ltd.
Nippon Oil Exploration(Malaysia) Limited.
Nippon Oil Exploration(Sarawak) Limited.
Employees (housing loans)
Total

Millions of yen
13,729Millions of yen
Tangguh Trustee*
17,487
Sakhalin Oil and Gas
5,990
Development Co., Ltd.
INPEX Offshore North Campos,
1,780
Ltd.
Japan Ohanet Oil & Gas Co.,
897
Ltd.
Sakata Natural Gas Co., Ltd.
775
ALBACORA JAPAO
664
PETROLEO LIMITADA
Nippon Oil Exploration
553(Malaysia) Limited.
Fujian Tranche *397
Nippon Oil Exploration
81(Sarawak) Limited.
Employees (housing loans)
449
Total
29,077

11,845
1,759
1,569
1,013
770
286
537
31,511*Debt for investment funds of Tangguh LNG projectthrough MI Berau B. V.
In addition, INPEX BTC Pipeline, Ltd., a consolidated
subsidiary, is contingently liable as guarantor ofindebtedness of BTC Pipeline Project Finance in theamount of ¥7,252 million until BTC Pipeline projectcompletion (guarantee for completion).

*Debt for investment funds of Tangguh LNG projectthrough MI Berau B. V. and MI Berau Japan Ltd.
In addition, INPEX BTC Pipeline, Ltd., a consolidated
subsidiary, is contingently liable for next scheduled
payment, which is ¥340 million as of the balance sheet
date, as the guarantor of indebtedness of BTC Pipeline
Project Finance under certain conditions.

―24―

更新日時:5/14/2008 1:42:00 PM

ファイル名:④H20.3e連結BSPLCF注記

印刷日時:08/05/16 19:37(Consolidated statements of income)For the year ended March 31, 2007

For the year ended March 31, 2008

*1. Major accounts included in selling, general andadministrative expenses are as follows:*1. Major accounts included in selling, general andadministrative expenses are as follows:

Millions of yen
Personnel expenses
11,082(Including provision for accrued
339)
retirement benefits to officers(Including provision for accrued
retirement benefits to451)
employees(Including provision for accrued
193)
bonuses to officers
Freight expenses
8,671
Depreciation expenses
12,867
Amortization of goodwill
6,977

Millions of yen
Personnel expenses
12,433(Including provision for accrued
216)
retirement benefits to officers(Including provision for accrued
retirement benefits to650)
employees(Including provision for accrued
208)
bonuses to officers
Freight expenses
15,041
Depreciation expenses
15,825
Amortization of goodwill
6,616*2. Research and development expenses included in generaland administrative expenses: ¥300 million*2. Research and development expenses included in generaland administrative expenses: ¥2,228 million*3. Net gain on re-determination of unitized field
The Company re-determined reserves at a certain
unitized field and agreed with other third parties tochange the Companys’ participating interest
percentage retroactively. As a consequence, theCompany recognizes its revenue and expenditure
occurred in the past and records the net gain.
*4. Net gain on taking effect of exploration and production
agreement
Upon taking effect of exploration and production
agreement, the Company retroactively adjusts its
revenue and expenditure occurred in the past andrecords the net gain.

―25―

更新日時:5/14/2008 1:42:00 PM

ファイル名:④H20.3e連結BSPLCF注記

印刷日時:08/05/16 19:37(Consolidated statements of changes in net assets)
For the year ended March 31, 2007
1. Type and number of shares issued and outstanding and treasury stock(Shares)

Balance as ofMarch 31, 2006

Balance as ofMarch 31, 2007

Increase

Decrease

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
Source ofType 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―26―

更新日時:5/14/2008 1:42:00 PM

ファイル名:④H20.3e連結BSPLCF注記

印刷日時:08/05/16 19:37

For the year ended March 31, 2008
1. Type and number of shares issued and outstanding and treasury stock
Balance as ofMarch 31, 2007

Increase(Shares)
Decrease

Number of shares
Common stock
2,358,409――
Special class share
1
―
―
Total
2,358,410――
Treasury stock
Common stock
1,089
1,007
49
Total
1,089
1,007
49
Notes 2: Increase in treasury stock of common stock is due to purchase of 1,007 odd lot shares.
3: Decrease in treasury stock of common stock is due to sales of 49 odd lot shares.

Balance as ofMarch 31, 2008
2,358,409
1
2,358,410
2,047
2,047

2. Share subscription rights
None
3. Dividends(1) Cash dividends paid
Resolution
Ordinary general
meeting ofshareholders held on
June 26, 2007
Board of directors’
meeting held on
November 9, 2007

Type ofshare
Commonstock
Specialclass share
Commonstock
Specialclass share

Cash dividends paid
(Millions of yen)

Dividends per
share
(Yen)

16,5017,000

March 31, 2007

June 27, 2007

0

7,000

March 31, 2007

June 27, 2007

8,248

3,500

September 30, 2007

December 5, 2007

0

3,500

September 30, 2007

December 5, 2007

Entitlement date

Effective date(2) Dividends, of which the entitlement date was in the year ended March 31, 2008, 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
9,425
4,000 March 31, 2008
June 26, 2008
meeting ofstock
earnings
shareholders held on
SpecialRetained
04,000 March 31, 2008
June 26, 2008
June 25, 2008
class shareearnings―27―

更新日時:5/14/2008 1:42:00 PM

ファイル名:④H20.3e連結BSPLCF注記

印刷日時:08/05/16 19:37(Consolidated statements of cash flows)

For the year ended
March 31, 2007

For the year ended
March 31, 2008

*1 Cash and cash equivalents at the end of the*1 Cash and cash equivalents at the end of theperiod are reconciled to the account reported 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)
Cash and cash equivalents

189,416

period are reconciled to the account reported in
the consolidated balance sheet as follows:
Millions of yen
204,596
Cash and deposits
Time deposits for more than(592)
three months and others
Marketable securities
14,589(commercial paper)
Marketable securities
1,676
(MMF)
Marketable securities(certificate of deposit)
Cash and cash equivalents

―28―

2,000
222,269

ファイル名:④H20.3fセグメント-海外売上高

更新日時:5/14/2008 9:16:00 AM

印刷日時:08/05/16 19:38(Segment information)
1. Business segment information
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, operating income and asset.
For the year ended March 31, 2008
Segment information by business has been omitted because the crude oil and natural gas business accounts for more than 90% of
total sales, operating income and asset.

―29―

更新日時:5/14/2008 9:16:00 AM

ファイル名:④H20.3fセグメント-海外売上高

印刷日時:08/05/16 19:38

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

Americas118,617

386,009

220

―

―

―

77,322

387,542

118,617

Operating expenses

54,306145,637

Operating income (loss)

23,016
197,404

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

II Assets
Notes:Japan

Asia Oceania

NIS

Eliminations
and other

Consolidated

77,322

387,542969,712―

969,712

0

―

0

(0)

―

386,009220

969,713(0)969,71282,995

119,282

1,659

403,882

6,753

410,635

241,905

35,621

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

322,115

320,574

254,071

17,775

1,111,942

496,163

1,608,106

Total

1. Countries and areas are segmented based on their geographic proximity and their mutual operational relationships.
2. Major countries and areas that belong to segments 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.
4. Of the figure for assets, ¥496,371 million included in “Eliminations and other” are mainly goodwill, cash and deposit,
marketable securities and investment securities concerned with the administrative divisions.

For the year ended March 31, 2008 (April 1, 2007 through March 31, 2008)(Millions of yen)Eurasia
Middle East (Europe Africa
NIS)

Japan

Asia Oceania

93,882452,542

183,878

464,522

8,139

―

―

―

―

93,882452,542

183,878

Operating expenses

61,950165,836

Operating income (loss)

31,932
212,305

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

II Assets
Notes:

Eliminations
and other

Consolidated

1,202,965―

1,202,965

―

―

―

―

464,5228,139

1,202,965―

1,202,965

97,842

140,492

16,101

482,2236,530

488,754286,705

86,035

324,030(7,961)

720,741(6,530)714,211360,298

363,183

299,563

60,656

1,296,006

511,893

1,807,900

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) Eurasia (Europe - NIS)･･･Azerbaijan, Kazakhstan, UK(3) Middle East - Africa･････UAE, D.R. Congo, Iran, Libya, Egypt, Algeria, Angola(4) Americas･･････････････Venezuela, Ecuador, USA, Canada, Suriname
3. Unallocated operating expenses included in “Eliminations and other” of ¥10,345 million under the operating expenses aremainly amortization of goodwill and general administrative expenses.
4. Of the figure for assets, ¥515,849 million included in “Eliminations and other” are mainly goodwill, cash and deposit,
marketable securities and investment securities concerned with the administrative divisions.
5. Change of classification of region
While the classification of region until the previous fiscal year had been “Japan”, “Asia - Oceania”, “NIS”, “Middle East Africa” and “Americas”, the “NIS” was changed to “Eurasia (Europe - NIS)” due to acquisition of interest in UK project
during the year ended March 31, 2008.

―30―

更新日時:5/14/2008 9:16:00 AM

ファイル名:④H20.3fセグメント-海外売上高

印刷日時:08/05/16 19:38

3. Overseas sales
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.

For the year ended March 31, 2008
Asia - Oceania
I.

Overseas sales (Millions of yen)

381,146

Other

Total

84,470II. Consolidated sales (Millions of yen)

1,202,965

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

465,617

31.7

7.0

38.7

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.

―31―更新日時:5/12/2008 10:34:00 AM

ファイル名:④H20.3i連結一株後発開示の省略

印刷日時:08/05/16 19:38(Per share information)

For the year ended
March 31, 2007
Net assets excluding minority interests
per share
Net income per share
Notes:For the year ended
March 31, 2008

¥436,467.92¥70,423.45

Net assets excluding minority
interests per share
Net income per share¥73,510.14

1. Diluted net income per share is not presented because there are no dilutive potential of shares of common stock.
2. Net income per share is calculated based on the following:
For the year ended
March 31, 2007
Net income (Millions of yen)Note:¥491,168.09

165,091

For the year ended
March 31, 2008
173,245

Amount not attributable to common――
stockholders (Millions of yen)
Net income attributable to common
165,091
173,245
stockholders (Millions of yen)
2,356,759
Average number of shares (shares)
2,344,269
2,356,758
Common stock
2,344,268
Common stock equivalent share;
11Special class share
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.

―32―

更新日時:5/12/2008 10:34:00 AM

ファイル名:④H20.3i連結一株後発開示の省略

印刷日時:08/05/16 19:38(Significant subsequent events)
No relevant matters(Omissions of disclosure)With respect to information for leases, related party transactions, tax accounting, securities, derivatives and retirement
benefits plan respective disclosure has been omitted because it does not have significant impact on the consolidated
financial statements.

―33―

更新日時:5/13/2008 2:01:00 PM 印刷日時:08/05/16 19:39

ファイル名:⑥H20.3b個別BS

5 Non-consolidated Financial Statements(1) Non-consolidated balance sheets(Millions of yen, %)Accounts

As of March 31, 2007
(A)

As of March 31, 2008
(B)

Fluctuation(B)-(A)

Ratio

Amounts

Ratio

Amounts

2.8

722
7,994
136
33
3,253
3
12,142

1.5(10,774)

2
19
22

0.0

33
427
461

0.0

439

511
511

0.1

1,499
1,499

0.2

988

Amounts(Assets)
Ⅰ Current assets
1 Cash and deposits
2 Marketable securities
3 Prepaid expenses
4 Deferred tax assets
5 Accounts receivable-other
6 Other
Total current assets
Ⅱ Fixed assets
1 Tangible fixed assets(1) Tools and fixtures(2) Construction in progress
Total tangible fixed assets
2 Intangible assets(1) Software
Total 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

15,871
995
0
26
5,994
28
22,917

4,962

2,999

793,906

793,906

466

1,556

799,335

97.1

798,461

98.3

(873)

799,868
822,786

97.2
100.0

800,422
812,565

98.5
100.0

553
(10,220)―34―

更新日時:5/13/2008 2:01:00 PM 印刷日時:08/05/16 19:39

ファイル名:⑥H20.3b個別BS(Millions of yen, %)Accounts

As of March 31, 2007
(A)
Amounts

As of March 31, 2008
(B)

Fluctuation(B)-(A)

Ratio

Amounts

Ratio

Amounts

0.1

203
42
44
34
113
439

0.1

(72)

(Liabilities)
Ⅰ Current liabilities
1 Accounts payable-other2 Accrued expenses
3 Income taxes payable
4 Deposits payable
5 Accrued bonuses to officers
Total current liabilities
Ⅱ Long-term liabilities
1 Deferred tax liabilities
2 Accrued retirement benefits toofficers
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

223
59
84
34
110
511
2

10

117

227

120
632

0.0
0.1

237
676

0.0
0.1

116
44

30,0003.6

30,000

3.7

―

92.7

762,9922
762,99493.9

2762,992―
762,992

30,26521,09230,265(1,108)822,149

3.7
(0.1)
99.9

21,092(2,215)
811,872

2.6
(0.3)
99.9

(9,173)(1,106)(10,277)

4

0.0

16

0.0

12

4

0.0

16

0.0

12

822,153
822,786

99.9
100.0

811,888812,565

99.9
100.0

(10,265)(10,220)―35―

更新日時:5/12/2008 7:48:00 PM 印刷日時:08/05/16 19:39

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

For the year ended March 31, 2007 For the year ended March 31, 2008 Fluctuation(A)(B)(B) - (A)Amounts

Ratio

Amounts

Ratio

Amounts

ⅠOperating revenues
1 Dividends income
2 Management consulting
fee income
Ⅱ General and administrative
expenses
Operating income

30,393
2,407

15,62432,801

100.0

2,157
30,643

2,769

18,394100.0(14,407)

6.6

2,769

15.1

611

93.4

15,62484.9(15,019)

115

0.7

67

1

0.0

(257)

Ⅲ Other income
1 Interest income

28

24

2 Interest income-securities
3 Interest on refund ofincome taxes and other
4 Other

18

73

―

17

0

47

0.2

0

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

4

―

249

―

3

1

0

Ordinary income
Income before income
taxes
Income taxes—current

132

Income taxes—deferred(26)

Net income

258

0.8

0

30,432

92.8

15,73885.6(14,694)

30,432

92.8

15,73885.6(14,694)

106

0.3

161

0.9

55

30,326

92.5

15,576

84.7(14,750)169― 36 ―(8)

更新日時:5/12/2008 10:35:00 AM

ファイル名:⑥H20.3d2個別変動計算書

印刷日時:08/05/16 19:40(3) Non-consolidated statements of changes in net assets
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
Net income

792,992

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

616

555

555

30,326

Purchase of treasury
stock
Disposal of treasury
stock
Other changes in items
other than those inshareholders’ equity (net)Total changes during theperiodBalance as of March 31,
2007

792,992

(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

For the year ended March 31, 2008
(Millions of yen)
Valuation,translation
adjustments
and others

Shareholders’ equity

Retainedearnings
Total
Unrealized
Other retained Treasury shareholder holding gain
stock
Other capital Total capitalearningss’ equity on securities
surplussurplus
Unappropriatedretained earnings

Capital surplus

Commonstock

Balance as of March 31,
2007

30,000Capitalreserve

762,992―

762,992

30,265(1,108)822,149

4

Total net
assets822,153

Changes during the period
Cash dividend paid
Net income(24,749)(24,749)(24,749)

15,576

15,576

15,576(1,159)(1,159)(1,159)

52

54

54

Purchase of treasury
stock
Disposal of treasury
stock
Other changes in items
other than those inshareholders’ equity (net)Total changes during theperiodBalance as of March 31,
2008

2

2

12

12

―

―

2

2

(9,173)(1,106)(10,277)12(10,265)

30,000762,9922

762,994

21,092(2,215)

811,87216

811,888―37―

更新日時:5/12/2008 10:35:00 AM

ファイル名:⑥H20.3e個別後発事象＋その他役員異動

印刷日時:08/05/16 19:40(Significant subsequent events)

For the year ended March 31, 2007

For the year ended March 31, 2008
Merger with subsidiaries
1. Purpose of merger
The Company was established as a joint holding
company through stock transfer by INPEXCORPORATION and Teikoku Oil Co., Ltd. on April 3,
2006. The Company decided to merge with INPEXCORPORATION and Teikoku Oil Co., Ltd. as of
October 1, 2008 to achieve more efficient and proactive
management.
2. Summary of merger(1) Merger schedule
Board of directors meeting to approve the merger
agreement: April 28, 2008
Signing of the merger agreement: April 28, 2008
Merger date (effective date): October 1, 2008
(2) Merger method
The merger will be an absorption merger, with theCompany as a surviving company and INPEXCORPORATION and Teikoku Oil Co., Ltd. as nonsurviving companies. INPEX CORPORATION and
Teikoku Oil Co., Ltd. will be liquidated as of theeffective merger date above. The merger does not
involve any issuance of new shares, other increase incapital or payments derived from merger since theCompany will merge with wholly-owned subsidiaries.
(3) Succession of the assets of the non-surviving
companies
The Company, as the surviving company, will succeed
to the whole assets, liabilities, rights and obligations of
the non-surviving companies as of the merger date.
3. Main businesses, financial positions and financial
results of predecessor companies(1) Trade name(2) Main business(3) Headquarters(4) Net sales

INPEX
CORPORATION(Non-surviving
company)(For the year ended
March 31, 2008)
Exploration,
development,
production,
distribution of crudeoil, natural gas andother energy
resources andinvestment in suchcompany(Non-surviving
company)(For the year ended
March 31, 2008)
Exploration,
development,
production,
distribution of crudeoil, natural gas andinvestment in suchcompany

4-1-18 Ebisu,
Shibuya-ku, Tokyo,Japan¥344,136 million

1-31-10, Hatagaya,
Shibuya-ku, Tokyo,Japan¥121,531 million¥151,005 million¥29,062 million

Teikoku Oil Co., Ltd.

(5) Net income(6) Common
stock(7) Net assets¥29,460 million¥19,579 million¥634,423 million¥218,810 million(8) Total assets¥661,515 million¥293,399 million―38―

更新日時:5/12/2008 10:35:00 AM

ファイル名:⑥H20.3e個別後発事象＋その他役員異動

印刷日時:08/05/16 19:40

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

―39―

2ファイル名:(2) Production, orders received and sales performance1) Actual production
The following table shows actual production by business segment during each period:
For the year ended
For the year ended
Business segment
Category
March 31, 2007
March 31, 2008

Crude oil andnatural gas

Crude oil89 MMbbls(243 Mbbls per day)

88 MMbbls(242 Mbbls per day)Natural gas

384 Bcf(1,051 MMcf per day)

398 Bcf(1,089 MMcf per day)Subtotal

152 MMboe(418 Mboe per day)

155 MMboe(423 Mboe per day)Petroleumproducts

243 Mkl(1,531 Mbbls)

232 Mkl(1,458 Mbbls)

534 tons

490 tons― millions kWh

106 millions kWh

IodineElectric power
generation
Notes:

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 year ended March 31 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 110
MMbbls (300 Mbbls per day) of crude oil, 696 Bcf (1,902 MMcf per day) of natural gas, and in total 226
MMboe (617 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.

― 40 ―

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)
For the year ended
For the year ended
Business segment
Category
March 31, 2007
March 31, 2008
Crude Oil

83,276 Mbbls 607,400

Crude oil andnatural gas

783,465

402,081 MMcf

366,080 MMcf
Natural Gas

85,716 Mbbls

391,090332,937
LPG: 1,351 Mbbls

LPG: 1,549 Mbbls

Others25,782

26,479Subtotal

966,119

1,201,035

3,593

1,929

969,7121,202,965

Other
Total

Notes: 1. The above amounts do not include the related consumption tax.
2. The Companys’ subsidiaries of which closing date for fiscal year is December 31 are principally consolidated
their operating results for the year ended December 31 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 year ended
For the year ended
March 31, 2007
March 31, 2008
CustomerAmountRatio
Amount
Ratio
（％）
（％）
（Millions of yen）
（Millions of yen）
PERTAMINA

276,12128.5― 41 ―

309,750

25.7

1ファイル名:⑦H20.3補足データ要約PL(INPEXサブ)

更新日時:5/12/2008 10:37:00 AM

印刷日時:08/05/16 19:41(2) Consolidated Statements of Income of INPEX CORPORATION (Condensed)(Millions of yen)Accounts

For the year ended
March 31, 2008
(B)
Amounts

For the year ended
March 31, 2007
(A)
Amounts

Fluctuation(B)-(A)
Amounts

Ⅰ Net sales

877,322

1,082,541

205,219

Ⅱ Cost of sales

306,600

349,878

43,277Gross profit

570,721732,662

161,941

Ⅲ Exploration expenses

14,794

27,824

13,029Ⅳ Selling, general and administrative
expenses

21,81031,918

10,108534,116

672,920

138,803

Ⅴ Other income

58,23924,907(33,331)

1 Interest income

12,196

10,165(2,031)2 Equity in earnings of affiliates

977

898

(79)

3 Gain on transfer of mining rights

33,533―(33,533)

―

4,005

4,005

5 Foreign exchange gain

5,674

3,953

(1,720)6 Other

5,857

5,884

27

Ⅵ Other expenses

25,89835,804

9,905

1 Interest expense

11,5599,959(1,600)2 Provision for allowance for recoverable
accounts under production sharing

4,775

18,893

14,1183 Provision for exploration projects

1,975

1,913

(61)

4 Other

7,587

5,037

(2,550)Ordinary income

566,457

662,023

95,566

Income before income taxes andminority interests

566,457

662,023

95,566

Income taxes-current

418,169

476,354

58,185

Income taxes-deferred(19,230)

3,370

22,601

7,580

19,348

11,767

159,938

162,950

3,011

Operating income

4 Net gain on re-determination of unitized
field

Minority interests
Net income― 42 ―

ファイル名:⑧H20.3補足データ要約PL(TOCサブ)

更新日時:5/12/2008 10:37:00 AM

印刷日時:08/05/16 19:41(3) Consolidated Statements of Income of Teikoku Oil Co., Ltd. (Condensed)(Millions of yen)Accounts

For the year ended
March 31, 2007
(A)
Amounts

For the year ended
March 31, 2008
(B)

Fluctuation(B)-(A)

Amounts

Amounts

Ⅰ Net sales

114,867

153,028

38,161Ⅱ Cost of sales

59,62773,153

13,526Gross profit

55,24079,874

24,634

Ⅲ Exploration expenses

2,894

6,271

3,376

Ⅳ Selling, general and administrative
expenses

20,80025,441

4,641

31,545

48,162

16,616

Ⅴ Other income

4,747

10,1975,449

1 Interest income

611

753

141

2 Equity in earnings of affiliates

372

866

494

3 Net gain on taking effect of explorationand production agreement

―

3,481

3,481

4 Foreign exchange gain

64

―

(64)

5 Other

3,699

5,095

1,396

Ⅵ Other expenses

6,619

5,989

(630)

1 Interest expense

836

960

123

1,401

1,692

291

3 Provision for exploration projects

997

1,190

192

4 Foreign exchange loss

―

1,206

1,206

3,384

938

(2,445)29,67352,37022,697Ⅶ Special income

653

3

(649)

Ⅷ Special loss

―

882

882

Income before income taxes andminority interests

30,32651,491

21,164

Income taxes-current

14,68820,327

5,639

Income taxes-deferred(162)(1,347)(1,184)

Minority interests

351

1,856

1,504

15,44930,654

15,205

Operating income

2 Provision for allowance for recoverable
accounts under production sharing

5 OtherOrdinary income

Net income― 43 ―