Slide 1: Financial Results for the year ended March 31, 2016
INPEX CORPORATION Financial Results for the year ended March 31, 2016 May 13, 2016
Slide 2: Agenda
Agenda Corporate Overview Outlook Financial Results for the year ended March 31, 2016 Consolidated Financial Forecasts for the year ending March 31, 2017 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: Corporate Overview
Corporate Overview Toshiaki Kitamura Representative Director, President & CEO
Slide 5: FY 2016/03 Corporate Highlights (1/2)
FY 2016/03 Corporate Highlights (1/2) ■ Financial Results ‐ Net sales ¥1,009.5 billion (13.8 % decrease YoY) (FY2016/03) ‐ Net income ¥16.7 billion (78.4 % decrease YoY) ■ Net Production ‐ 514 thousand BOED (26% increase YoY) ■ Proved Reserves ‐ 3.26 billion BOE (34% increase YoY) ■ Ichthys LNG ‐ Co
Slide 6: FY 2016/03 Corporate Highlights (2/2)
FY 2016/03 Corporate Highlights (2/2) Continuous Enhancement of E&P Activities Discovered oil in Deepwater Block R, Offshore East Malaysia (April) Acquired participating interest in ADCO Onshore Concession, Abu Dhabi, UAE (April) Re‐started oil production at Van Gogh Oil Field, Western Austral
Slide 7: Ichthys LNG Project (1/3)
Ichthys LNG Project (1/3) Onshore LNG plant Completion of subsea flowline installation (Feb./2016) (Mar/2016) Proved reserves: Approx. 930 million BOE (Based on INPEX’s participating interest of 62.245%) Production capacity : ‐Approx. 8.9 million t/y of LNG ‐Approx. 1.6 million t/y of LPG ‐Appro
Slide 8: Ichthys LNG Project (2/3) Offshore Facilities
Ichthys LNG Project (2/3) Offshore Facilities Major works for Offshore Facilities done since FID and plans up to the third quarter of 2017 2012 2013 2014 2015 2016 2017 (Jan.‐Sep.) Detailed engineering / procurement Installation of GEP Construction of CPF and FPSO / Preparation for ready for sail aw
Slide 9: Ichthys LNG Project (3/3) Onshore Facilities
Ichthys LNG Project (3/3) Onshore Facilities Major works for Onshore Facilities done since FID and plans up to the third quarter of 2017 2012 2013 2014 2015 2016 2017 (Jan.‐Sep.) Detailed engineering / procurement Fabrication of LNG plant modules Construction of storage tanks, power plant and produc
Slide 10: Abadi LNG Project
Abadi LNG Project Abadi gas field (image) Location of Masela Block Submitted to the Indonesian government a revised Plan of Development (Revised POD) in September 2015 based on the FLNG plant Under review on the notice from Indonesian government instructing to re‐propose a plan of development ba
Slide 11: Domestic Natural Gas Business
Domestic Natural Gas Business Naoetsu LNG Terminal LNG Indigenous gas source Toyama Line to start operations in mid‐2016 Signed Natural Gas Sales and Purchase Agreement with Nihonkai Gas in January 2016 Regarding natural gas supply as a fuel for new gas LNG (regasified) fired power generation
Slide 12: Topics for FY 2016/03
Topics for FY 2016/03 Progress of the existing projects (Results in the 2nd half of FY 2016/03) ナダ Republic of Angola and Republic of Congo : Indonesia: Offshore Mahakam Block Unitized offshore zone straddling both Agreed on the Heads of countries Agreement (HOA) in December In November commence
Slide 13: Net Production (FY 2016/03)
Net Production* (FY 2016/03) * The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX Group corresponds to the net economic 12 take of INPEX Group.
Slide 14: Proved + Probable Reserves and Reserve Indices
Proved + Probable Reserves* and Reserve Indices 6,000 Reserves to Finding & Development Cost per BOE (3‐year average ） 4,970 production ratio**** 5,000 4,477 70 58.2 60 4,095 4,044 1,705 50 4,000 US$/boe 40 1,945 30 Million BOE 1,907 1,610 16.9 3,000 20 11.7 26.4 10 2,000 years 0 Mar. ʹ14 Mar. ʹ15 M
Slide 15: Outlook
Outlook Toshiaki Kitamura Representative Director, President & CEO
Slide 16: Responding to Lower Oil Prices
Responding to Lower Oil Prices Mar.’15 & Mar.’16 investments Production cost per Barrel of Oil Equivalent*3 versus Mar.’17 investment forecast 10,000 9,381 12.0 9,000 11.2 8,084 10.0 30% reduction 8,000 from Mar.’15 (US$ Millions) 7,000 6,320 (US$/BOE) 8.0 6,000 7.8 5,000 8,464 6.0 7,325 4,000 6,060
Slide 17: Actual and Planned Investments
Actual and Planned Investments Actual and planned investments in Yen Actual and planned investments in US$ (Billions of Yen) (Millions of US$) (Billions of Yen) (Millions of US$ ) 1,200 12,000 1,100 1,029.7 11,000 1,000 962.9 971.1 10,000 9,612 9,381 900 9,000 7,877 8,084 800 8,000 695.0 700 653.1 7
Slide 18: Net Production Volume Projection
Net Production* Volume Projection Target for the 2020s 1,000 Following the Ichthys start‐up 1 million BOED etc., the total production volume 900 from existing projects will reach approximately 600 to 700 thousand BOED 800 600 to 700 700 600 557 (Thousand BOED) 514 521 500 4% 400 48% 300 6% 200 36% 1
Slide 19: FY 2017/03 Outlook
FY 2017/03 Outlook Investment Plan Net Production Projects Development: Target production: Ichthys LNG Project 667 billion Yen development progression 521 thousand BOED Exploration: (Increase by 7 thousand Toyama line to start 17 billion Yen BOED YoY) operations in mid‐2016 Other capital
Slide 20: Financial Results for the year ended March 31, 2016
Financial Results for the year ended March 31, 2016 Masahiro Murayama Director, Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 21: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended March 31, 2016 Apr. ‘14 ‐ Mar. ‘15 Apr. ‘15 ‐ Mar. ‘16 Change %Change Net sales (Billions of yen) 1,171.2 1,009.5 (161.6) (13.8%) Crude oil sales 730.4 679.2 (51.1) (7.0%) Natural gas sales (including LPG) 421.8 316.7 (105.0) (24.9%
Slide 22: Crude Oil Sales
Crude Oil Sales Apr. ‘14 ‐ Mar. ’15 Apr. ‘15 ‐ Mar. ’16 Change %Change Net sales (Billions of yen) 730.4 679.2 (51.1) (7.0%) Sales volume (thousand bbl) 80,558 117,227 36,669 45.5% Average unit price of overseas 84.00 47.95 (36.05) (42.9%) production ($/bbl) Average unit price of domestic production
Slide 23: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) Apr. ‘14 ‐ Mar. ‘15 Apr. ‘15 ‐ Mar. ‘16 Change %Change Net sales (Billions of yen) 401.3 306.2 (95.1) (23.7%) Sales volume (million cf) 309,485 337,216 27,731 9.0% Average unit price of overseas 11.36 6.58 (4.78) (42.1%) production ($/thousand cf) Average unit price
Slide 24: Statement of Income
Statement of Income (Billions of Yen) Apr. ‘14 ‐ Mar. ’15 Apr. ‘15 ‐ Mar. ’16 Change %Change Increase in Sales volume : +362.1 Decrease in Unit price : (612.8) Exchange rate Net sales 1,171.2 1,009.5 (161.6) (13.8%) (Depreciation of Yen) : +94.4 Others : (5.3) Cost of sales 525.4 526.7 1.3 0.3% Gros
Slide 25: Other Income/Expenses
Other Income/Expenses (Billions of Yen) Apr. ‘14 ‐ Mar. ‘15 Apr. ‘15 ‐ Mar. ‘16 Change %Change Other income 101.7 69.9 (31.8) (31.3%) Interest income 11.2 10.7 (0.4) (4.2%) Dividend income 6.6 10.8 4.1 62.3% Gain on sales of marketable securities 18.1 25.9 7.8 43.2% Foreign exchange gain 19.5 2.9 (1
Slide 26: Analysis of Net Income Decrease
Analysis of Net Income Decrease (Billions of Yen) (億円) 500 362.1 400 Main Factors; ‐ Decrease in Gain on transfer of mining rights, etc. (26.7) 300 ‐ Decrease in Foreign exchange gain (16.5) 200 100 77.8 40.0 16.7 110.0 0 94.4 11.9 1.1 ‐100 (5.3) (1.3) (50.5) (10.7) ‐200 (612.8) ‐300 Net income Incr
Slide 27: Balance Sheet
Balance Sheet (Billions of yen) Mar. ’15 Mar. ’16 Change %Change Available fund (Billions of yen) Current assets 1,342.4 984.3 (358.0) (26.7%) 992.8* Breakdown Tangible fixed assets 1,497.6 1,752.6 254.9 17.0% • Cash and deposits : 772.5 • Long‐term time deposits : 202.8 Intangible assets 458.7 541.
Slide 28: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) Apr. ‘14 ‐ Mar. ‘15 Apr. ‘15 ‐ Mar. ‘16 Change %Change Income before income taxes 540.0 328.8 (211.1) (39.1%) Depreciation and amortization 52.5 86.7 34.2 65.3% Recovery of recoverable accounts under production sharing (capital expenditures) 75.5 64.1 (11.3)
Slide 29: Financial Indices
Financial Indices Net Debt/Total Capital Employed (Net)* Equity Ratio** Mar.ʹ15 Mar.ʹ16 (16.8%) (8.1%) 68.2% 67.1% Mar.ʹ15 Mar.ʹ16 D/E Ratio*** * Net Debt/Total Capital Employed (Net) = (Interest‐bearing debt ‐ Cash and deposits ‐ Public and corporate bonds and other debt securities (with determinab
Slide 30: Consolidated Financial Forecasts for the year ending March 31, 2017
Consolidated Financial Forecasts for the year ending March 31, 2017 Masahiro Murayama Director, Managing Executive Officer Senior Vice President, Finance & Accounting
Slide 31: Consolidated Financial Forecasts for the year ending March 31, 2017
Consolidated Financial Forecasts for the year ending March 31, 2017 1st Half 2nd Half Full year Brent oil price ($/bbl) 45.0 45.0 45.0 Average exchange rate (¥/$) 110.0 110.0 110.0 Mar. ‘16 Mar. ‘17 Full Year (Actual) (Forecasts) Change % Change Net Sales (Billions of yen) 1,009.5 808.0 (201.5) (20.
Slide 32: Sales and Investment Plan for the year ending March 31, 2017
Sales and Investment Plan for the year ending March 31, 2017 Mar. ’16 Mar. ‘17 (Actual) (Forecasts ) Change % Change Crude oil (thousand bbl)1 117,227 123,334 6,107 5.2% Sales Volume Natural gas (million cf)2 337,216 333,192 (4,024) (1.2%) Overseas 271,912 259,907 (12,005) (4.4%) 65,304 73,286 7,981
Slide 33: 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 March 31, 2017 (Note 1) (Billions of yen) Brent Crude Oil Price; $1/bbl increase (decrease) (Note 2) +2.9 (‐2.9) Exchange R