Slide 1: Financial Results for the year ended December 31, 2021
INPEX CORPORATION Financial Results for the year ended December 31, 2021 February 10, 2022
Slide 2: Agenda
Agenda Business Overview INPEX Vision@2022 Consolidated Financial Results for the year ended December 31, 2021 Consolidated Financial Forecasts for the year ending December 31, 2022 Copyright © 2022 INPEX CORPORATION. All rights reserved. 1
Slide 3: Cautionary Statement
Cautionary Statement This presentation includes forward‐looking information that reflects the plans and expectations of the Company. Such forward‐looking information is based on the current assumptions and judgments of the Company in light of the information currently available to it, and involves k
Slide 4: Business Overview
Business Overview Takayuki Ueda Representative Director, President & CEO
Slide 5: FY2021 Highlights
FY2021 Highlights Net Sales ¥1,244.3 billion (61.4% increase YoY) Net Income ¥223.0 billion (¥334.7 billion increase YoY) FY2021 Free Cash Flow* ¥410.3 billion (125.4% increase YoY) Financial Results Net Production 584,000 BOE per day (1.9% increase YoY) Proved Reserves 3.65 billion BOE (2.3% decrea
Slide 6: Upstream Oil & Gas Project Highlights (1)
Upstream Oil & Gas Project Highlights (1) Australia Ichthys LNG Project (In production, 66.245% INPEX Interest) Cargoes Shipped 117 LNG cargoes shipped in 2021 Approximately 10 LNG cargoes per month expected for 2022 Period LNG Onshore Condensate Offshore Condensate LPG October 2018 to March 2
Slide 7: Upstream Oil & Gas Project Highlights (2)
Upstream Oil & Gas Project Highlights (2) Indonesia Abu Dhabi Abadi LNG Project Abu Dhabi Offshore Oil Fields (In production) (In preparation for development, 65% INPEX Interest) Target Production Capacity Production Capacity Upper Zakum (12% INPEX interest): 1 million bbl/d Total output of
Slide 8: Upstream Oil & Gas Project Highlights (3)
Upstream Oil & Gas Project Highlights (3) Japan Americas Natural Gas Business in Japan (In production, 100% INPEX Interest) Tight Oil Project (Eagle Ford shale play) (In production, 100% INPEX Interest except for a portion Natural Gas Sales Volume (1m3 =41.8605MJ) FY2021 (actual): 2.20 billion m
Slide 9: Net Zero Business Highlights (1)
5 Net Zero Business Highlights (1) Hydrogen & Ammonia CCUS Integrated Demonstration of Hydrogen & Ammonia Production CO2EOR Demonstration (Agano City, Niigata, Japan) (Kashiwazaki City, Niigata, Japan) In April 2021, Commenced a joint study with JOGMEC for a CO2 Preparing demonstrate the feasibi
Slide 10: Net Zero Business Highlights (2)
5 Net Zero Business Highlights(2) Renewable Energy Carbon Recycling & New Business Offshore Wind Power Project (Netherlands) Methanation (Nagaoka City, Niigata, Japan) In December 2021, agreed to enter a stock transfer Constructed a testing facility producing methane from CO2 and agreement with
Slide 11: Net Production Volume and Production Cost per BOE
Net Production Volume and Production Cost per BOE FY2021 net production increase reflects OPEC plus production cuts easing etc. FY2021 production cost per BOE (excluding royalty) increase reflects OPEX increase at Ichthys etc. Net Production Volume Production Cost per BOE (Excl. Royalty) 600 573
Slide 12: INPEX Vision@2022
INPEX Vision@2022 Takayuki Ueda Representative Director, President & CEO
Slide 13: Review of the Medium-term Business Plan 2018-2022
Review of the Medium‐term Business Plan 2018‐2022 Strengthened the oil and gas business portfolio and improved production efficiency by achieving stable operations at Ichthys, etc. In addition, significant progress made on business targets of energy transition initiative including the development
Slide 14: Long-term Strategy (1)
INPEX VISION@2022 Long‐term Strategy (1) INPEX will transform net zero carbon from an ideal to reality. Invest up to about 1 trillion JPY in the 5 net zero businesses and aim for these businesses to generate about 10% of operating cash flow1 by 2030 ［ 9 years between 2022 and 2030 ］ 5 net zero busin
Slide 15: Long-term Strategy (2)
INPEX VISION@2022 Long‐term Strategy (2) Around Around 10% of Medium-term business plan period 2030 operating CF 2050 Kashiwazaki Commercialization of Supply of approx. Hydrogen Approx. demonstration project 150 times 3 or more projects 10% of domestic Ammonia 700t/year 100Kt/year1 demand Kashiwazak
Slide 16: Long-term Strategy (3)
INPEX VISION@2022 Long‐term Strategy (3) Centralize business portfolio by setting core business areas • Focus on Australia, Abu Dhabi, Southeast Asia, Japan and Europe as new core business areas, and improve efficiency by centralizing business assets in these areas • Expand core business area operat
Slide 17: Mid-term Business Plan 2022-2024 (1)
INPEX VISION@2022 Mid‐term Business Plan 2022‐2024 (1) Accelerate efforts to realize “Vision for around 2030” 5 net zero businesses Oil and gas business (p.17) ▶ Steadfastly implement demonstration ▶ Safely and stably operate and research activities businesses ▶ Prepare for full-scale investment ▶ C
Slide 18: Mid-term Business Plan 2022-2024 (2)
INPEX VISION@2022 Mid‐term Business Plan 2022‐2024 (2) Cash allocation (for 2022-2024, 3 years) (Assumptions: Inclusive of ◦ Pursue debt reduction of about 500B JPY and achieve a net interest-bearing Ichthys downstream IJV, debt level 1 of about 1.5T JPY. 110 JPY/USD exchange rate) ◦ Aim for annual
Slide 19: Consolidated Financial Results for the year ended December 31, 2021
Consolidated Financial Results for the year ended December 31, 2021 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 20: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended December 31, 2021 FY2020 FY2021 Change % Change Net sales (Billions of yen) 771.0 1,244.3 473.3 61.4% Crude oil sales 505.5 905.1 399.6 79.1% Natural gas sales (including LPG) 250.5 320.5 69.9 27.9% Others 14.9 18.5 3.6 24.5% Operat
Slide 21: Crude Oil Sales
Crude Oil Sales FY2020 FY2021 Change % Change Net sales (Billions of yen) 505.5 905.1 399.6 79.1% Sales volume (thousand bbl) 117,282 120,118 2,837 2.4% Average unit price of overseas sales ($/bbl) 40.31 68.43 28.12 69.8% Average unit price of domestic sales (¥/kl) 31,001 50,014 19,013 61.3% 3.25yen
Slide 22: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) FY2020 FY2021 Change % Change Net sales 247.8 313.6 65.8 26.6% (Billions of yen) Sales volume 467,466 464,805 (2,661) (0.6%) (million cf) Average unit price of overseas sales 3.61 4.96 1.35 37.4% ($/thousand cf) Average unit price of domestic sales 46.93 45.73 (1.20
Slide 23: Statement of Income
Statement of Income (Billions of Yen) FY2020 FY2021 Change % Change Increase in sales volume : +25.0 Net sales 771.0 1,244.3 473.3 61.4% Increase in unit price : +411.6 Exchange rate: +33.0 Cost of sales 439.8 568.9 129.0 29.3% Others : +3.6 Gross profit 331.1 675.4 344.2 103.9% Cost of sales for Cr
Slide 24: FY2021 Analysis of Income before One-off Profit
FY2021 Analysis of Income before One‐off Profit (Billions of Yen) * Income before one‐off profit = Net income attributable to owners of parent − one‐off profit +185.9 Copyright © 2022 INPEX CORPORATION. All rights reserved. 23
Slide 25: FY2021 Analysis of Impact of One-off Profit (Loss)
FY2021 Analysis of Impact of One‐off Profit (Loss) (Billions of Yen) (Billions of Yen) Copyright © 2022 INPEX CORPORATION. All rights reserved. 24
Slide 26: Balance Sheet
Balance Sheet Summary of financial information for Ichthys downstream JV (100% basis, including the Company’s equity share 66.245%) (Billions of yen) December 2020 December 2021 Change % Change (Billions of yen) • Current assets : 134.4 Current assets 387.0 518.8 131.7 34.0% • Fixed assets : 3,703.1
Slide 27: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) FY2020 FY2021 Change Income before income taxes 67.3 643.4 576.0 Depreciation and amortization 174.0 203.1 29.0 Impairment loss 189.9 14.1 (175.7) Recovery of recoverable accounts under production sharing (capital 34.6 62.2 27.5 expenditures) Decrease (incre
Slide 28: FY2021 Cash Flow
FY2021 Cash Flow*1 (Billions of Yen) FCF +410.3 *2 *1 Including cashflow of Ichthys LNG Pty Ltd, the Ichthys Downstream IJV (Incorporated Joint Venture), an equity method affiliate *2 Including translation adjustments related to available fund Copyright © 2022 INPEX CORPORATION. All rights reserved.
Slide 29: Consolidated Financial Forecasts for the year ending December 31, 2022
Consolidated Financial Forecasts for the year ending December 31, 2022 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 30: Consolidated Financial Forecasts for the year ending December 31, 2022
Consolidated Financial Forecasts for the year ending December 31, 2022 Assumptions First Half (Jan to Jun 2022) Second Half (Jul to Dec 2022) Full Year (Jan to Dec 2022) Brent oil price ($/bbl)*1 80.0 70.0 75.0 Average exchange rate (¥/$) 110.0 110.0 110.0 *1 Quarterly breakdown of the Brent oil pri
Slide 31: FY2022 Financial Forecasts Analysis of Increase
FY2022 Financial Forecasts Analysis of Increase (Billions of Yen) 350 300 69.1* 0.3 (10.2) 250 Exchange Rate (Yen/US$) FY2021 Actual 109.90 (30.0) (2.2) FY2022 Forecast 110.00 200 Crude Oil Price (Brent) （US$/bbl） FY2021 Actual 70.95 FY2022 Forecast 75.00 150 250.0 223.0 100 50 0 FY2021 Impact from
Slide 32: FY2021 Net Sales, Ordinary Income and Net Income
FY2021 Net Sales, Ordinary Income and Net Income Attributable to Owners of Parent (Billions of Yen) 1,600.0 1,400.0 1,200.0 1,000.0 824.0 657.6 800.0 600.0 257.3 400.0 200.0 0.0 ‐200.0 2018/3 2019/3 2019/12 2020/12 2021/12 2022/12 (9 months) (forecast) Net sales Ordinary income Net income attributab
Slide 33: FY2022 Sales Volume and Investment Expenditures (Forecast)
FY2022 Sales Volume and Investment Expenditures (Forecast) FY2021 (actual) FY2022 (forecast) Change % Change Crude oil (thousand bbl) *1 120,118 133,071 12,953 10.8% Natural gas (million cf) *2 Sales Volume 464,805 482,857 18,052 3.9% Overseas 382,819 401,076 18,257 4.8% 81,986 81,781 (206) Japan (0
Slide 34: Net Income Sensitivities
Net Income Sensitivities Sensitivities of crude oil price and foreign exchange fluctuation on consolidated net income attributable to owners of parent for the year ending December 31, 2022*1 (Billions of yen) At Beginning of 1Q : +6.0 (‐6.0) Brent Crude Oil Price; The impact on net income will cha
Slide 35: FY2022 Cash Flow Forecast
FY2022 Cash Flow Forecast * Approximately ¥280 billion in free cash flow* forecasted for FY2022. (Billions of Yen) Approx. 710 Approx. 430 Approx. 280 * Including cashflow of Ichthys LNG Pty Ltd, the Ichthys Downstream IJV (Incorporated Joint Venture ), an equity method affiliate Copyright © 2022