Slide 1: Financial Results for the year ended March 31, 2012
INPEX CORPORATION Financial Results for the year ended March 31, 2012 May 11, 2012 0
Slide 2: Agenda
Agenda Corporate Overview Medium- to long-Term vision of INPEX Outlook Financial Results for the year ended March 31, 2012 Consolidated Financial Forecasts for the year ending March 31, 2013 1
Slide 3: Cautionary Statement
Cautionary Statement This presentation includes forward-looking information that reflects the plan 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 kn
Slide 4: Corporate Overview
Corporate Overview Toshiaki Kitamura Representative Director, President & CEO
Slide 5: FY 2012/03 Corporate Highlights 1/2
FY 2012/03 Corporate Highlights 1/2 ■ Proved Reserves Increased by 86% YoY to 2.43 billion BOE ■ Net Production 426 thousand BOED LTIF 0.62, TRIR 1.76 ■ HSE KPI* Achieving our annual target ■ Financial Results Net sales ¥1,186.7 billion (25.8% increase YoY) (Mar.2012) Net profit ¥194.0 billion (50.7
Slide 6: FY 2012/03 Corporate Highlights 2/2
FY 2012/03 Corporate Highlights 2/2 Acquired Shale Gas Project (Canada), participated in Prelude FLNG project (Australia) Coniston (Offshore Australia) shifted into development phase, production started at Kitan (Timor Sea), Sebuku (Ruby gas field, Indonesia) started development works acquired n
Slide 7: Ichthys LNG Project (1/2)
Ichthys LNG Project (1/2) FID in January 2012 Condensate LNG, LPG, Condensate Major EPC contracts awarded Central Processing Facility (CPF) FPSO Onshore LNG Plant Major government approvals (Darwin) Offtake secured : production licenses Tanker Flexible Riser obtained in March 2012 Flow line
Slide 8: Ichthys LNG Project (2/2)
Ichthys LNG Project (2/2) 2012 2013 2014 2015 2016 Engineering, Procurement, Construction, Commissioning for Facilities FID Production GEP Pipe Supply, Pipelay start-up Plant Site Preparation, Dredging in Darwin Harbor Drilling Production Wells Signing loan agreements of project financing / drawdown
Slide 9: Abadi LNG Project
Abadi LNG Project Transferred a 30% participating interest to a subsidiary of Shell Shell provides technical services and assigns secondees Plan to transfer of a 10% participating interest to an Indonesian company designated by Indonesian Government, based on the PS Contract FEED contractors
Slide 10: Topics
Topics ■ Canada - Shale Gas Project – Agreed to acquire a 40% participating interest from Nexen in November 2011 – With full development, a full-scale production of the shale gas is expected to be up to 1,250 million standard cubic feet per day (approximately 200,000 BOED) Production plant in the Ho
Slide 11: Net Production (FY Mar. 2012)
Net Production* (FY Mar. 2012) Main increase factor 500 ・ Increase in production in Middle East / 449 Africa region mainly in ADMA Block, 5% 426 Abu Dhabi (+19MBOED) 4% 400 Main decrease factor 30% ・ Decrease in net production in Offshore Mahakam Block due to the natural decline (MBOED) 36% 300 and
Slide 12: Proved Reserves by Resource Type and Reserves Indices
Proved Reserves* by Resource Type and Reserves Indices Finding & Development Cost per BOE (3-year average ） 2,500 2,432 80 78.6 Mainly due to the upgrade of 70 Ichthys probable reserves to 60 55.4 2,000 proved reserves 50 US$/boe 40 1,598 1,451 30 1,475 20 MMBOE 6.3 1,500 10 1,308 0 550 495 Mar. '10
Slide 13: Medium- to Long-Term Vision of INPEX
Medium- to Long-Term Vision of INPEX Toshiaki Kitamura Representative Director, President & CEO
Slide 14: Background of Our Vision
Background of Our Vision October 2008 : Business integration of INPEX CORPORATION and Teikoku Oil Co., Ltd. July 2009 : Announced the ‚Mid-to Long-Term Business Challenges‛ January 2012 : Final Investment Decision (FID) on the Ichthys LNG Project ⇒ Define our medium- to long-term growth target
Slide 15: Three Growth Targets and Key Initiatives for the Next Five Years
Three Growth Targets and Key Initiatives for the Next Five Years 1. Continuous Enhancement of Our E&P Activities → Achieve a net production volume of 1 million boed by the early 2020s Ensure a successful start-up of Ichthys and Abadi Expand exploration expenditures (around 300 billion yen over f
Slide 16: Three Management Policies and Our Vision
Three Management Policies and Our Vision 1. Securing/Developing Human Resources and Building an Efficient Organizational Structure Establish a department for new project development Utilize overseas offices proactively Develop global professionals Establish an efficient business execution sy
Slide 17: Outlook
Outlook Toshiaki Kitamura Representative Director, President & CEO
Slide 18: Investment Plan
Investment Plan By Activity By Region (Billions of Yen) (Billions of Yen) 1,000 1,000 914.0 914.0 900 900 31.0 74.0 787.0 787.0 800 800 37.0 734.0 734.0 33.0 700 63.0 70.0 700 21.0 48.0 600 600 55.0 500 809.0 500 697.0 400 640.0 400 742.0 631.0 300 279.8 300 534.0 279.8 17.8 19.3 200 200 60.8 210.1
Slide 19: Net Production Volume Projection
Net Production* Volume Projection 1,000 Target for the 2020s 1,000MBOED 900 800 New Projects 700 600 (MBOED) 503 500 461 479 478 Through the Ichthys 426 419 start-up etc, the total 4% production from7%existing 400 projects will rise to Existing approximately 700 Projects 36% thousand BOED 300 6% 200
Slide 20: Financial Results for the year ended March 31, 2012
Financial Results for the year ended March 31, 2012 Masahiro Murayama Director, Managing Executive Officer Head of Finance & Accounting Division
Slide 21: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended March 31, 2012 Mar. ‘11 Mar. ‘12 Change %Change Net Sales (Billions of yen) 943.0 1,186.7 243.6 25.8% Crude Oil Sales 557.9 726.2 168.3 30.2% Natural Gas Sales (including LPG) 356.2 429.0 72.8 20.4% Others 28.9 31.4 2.5 8.7% Operati
Slide 22: Crude Oil Sales
Crude Oil Sales Mar. ’11 Mar. ’12 Change %Change Net Sales (Billions of yen) 557.9 726.2 168.3 30.2% Sales volume (thousand bbl) 76,651 80,738 4,086 5.3% Average unit price of overseas 84.34 112.97 28.63 33.9% production ($/bbl) Average unit price of domestic production(¥/kl) 49,957 60,263 10,305 20
Slide 23: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Mar. ‘11 Mar. ‘12 Change %Change Net Sales (Billions of yen) 334.6 404.7 70.0 20.9% Sales volume (MMcf) 401,228 357,601 (43,627) (10.9%) Average unit price of overseas 9.10 14.12 5.02 55.2% production ($/Mcf) Average unit price of domestic sales(¥/ m3) 41.73 44.56 2
Slide 24: Statements of Income
Statements of Income Decrease in Sales Volume : (4.4) (Billions of Yen) Mar. ’11 Mar. ’12 Change %Change Increase in Unit Price : +334.0 Exchange rate Net Sales 943.0 1,186.7 243.6 25.8% (Appreciation of Yen) : (88.4) Others : +2.5 Cost of Sales 334.8 395.4 60.6 18.1% Cost of sales for Exploration e
Slide 25: Analysis of Net Profit Increase
Analysis of Net Profit Increase (Billions of Yen) Main Factors Main Factors ‐ Increase in royalty due to Equity in earnings of affiliates +1.7 increased sales in ADMA block Loss on adjustment for changes of accounting 500 standard for asset retirement obligations +1.5 334.0 Gain on transfer of minin
Slide 26: Balance Sheets
Balance Sheets (Billions of yen) Mar. ’11 Mar. ’12 Change %Change Current assets 492.9 908.7 415.7 84.3% Tangible fixed assets 379.8 383.6 3.8 1.0% Intangible assets 249.1 233.3 (15.7) (6.3%) Recoverable accounts under production sharing 534.3 568.3 33.9 6.4% Other 1,121.0 1,073.0 (47.9) (4.3%) Less
Slide 27: Statements of Cash Flows
Statements of Cash Flows (Billions of Yen) Mar. ‘11 Mar. ‘12 Change %Change Income before income taxes and minority interests 508.5 767.0 258.4 50.8% Depreciation and amortization 54.2 48.0 (6.2) (11.5%) Recovery of recoverable accounts under production sharing (capital expenditures) 50.8 53.5 2.7 5
Slide 28: Financial Indices
Financial Indices Net Debt/Total Capital Employed (Net)* Equity Ratio** Mar.'11 Mar.'12 74.5% 71.1% (48.9%) (60.7%) Mar.'11 Mar.'12 D/E Ratio*** * Net Debt/Total Capital Employed (Net) = (Interest-bearing debt - Cash and deposits - Public and corporate bonds and other debt securities (with determina
Slide 29: Consolidated Financial Forecasts for the year ending March 31, 2013
Consolidated Financial Forecasts for the year ending March 31, 2013 Masahiro Murayama Director, Managing Executive Officer Head of Finance & Accounting Division
Slide 30: Consolidated Financial Forecasts for the year ending March 31, 2013
Consolidated Financial Forecasts for the year ending March 31, 2013 1st Half 2nd Half Full year Brent oil price ($/bbl) 100.0 100.0 100.0 Average exchange rate (¥/$) 80.0 80.0 80.0 Mar. ‘12 Mar. ‘13 Full Year (Actual) (Forecasts ) Change % Change Net Sales (Billions of yen) 1,186.7 1,058.0 (128.7) (
Slide 31: Sales and Investment plan for the year ending March 31, 2013
Sales and Investment plan for the year ending March 31, 2013 Mar. ‘12 Mar. ‘13 (Actual) (Forecasts ) Change % Change Crude oil (thousand bbl)1 80,738 85,914 5,176 6.4% Sales Volume Natural gas (MMcf)2 357,601 323,535 (34,066) (9.5%) Overseas 291,999 256,571 (35,428) (12.1%) 65,602 66,964 1,362 Japan
Slide 32: Net Income Sensitivities
Net Income Sensitivities Estimated Impact of crude oil price and foreign exchange fluctuation on consolidated net income for the year ending March 31, 2013 (Billions of yen) Brent Crude Oil Price; $1/bbl increase (decrease) +1.8 (1.8) Exchange Rate; ¥1 depreciation (appreciation) against the U.S.