Slide 1: Financial Results for the year ended December 31, 2020
Financial Results for the year ended December 31, 2020 February 12, 2021
Slide 2: Agenda
Agenda Corporate Overview Business Development Strategy - Towards a Net Zero Carbon Society by 2050 Progress against Medium-term Business Plan 2018-2022 Consolidated Financial Results for the year ended December 31, 2020 Consolidated Financial Forecasts for the year ending December 31, 202
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 Takayuki Ueda Representative Director, President & CEO
Slide 5: FY 2020/12 Financial Results Highlights
FY 2020/12 Financial Results Highlights Net Sales ¥771.0 billion (34.2% decrease YoY*1) Net Income (Loss) (¥111.6 billion) FY2020/12 Income before one-off profit*2 ¥54.6 billion (63.4% decrease YoY*1) Financial Results Net Production 573,000 BOED (0.3% increase YoY*1) Proved Reserves 3.73 billion BO
Slide 6: Ichthys LNG Project
Ichthys LNG Project Production Status Stable operations have been maintained as a result of various countermeasures against the spread of COVID-19. Number of LNG Cargoes 122 LNG cargoes shipped in 2020 Approximately 10 LNG cargoes per month expected for 2021 Onshore Offshore Period LNG LPG
Slide 7: Exploration Blocks in the Vicinity of Ichthys LNG Project
Exploration Blocks in the Vicinity of Ichthys LNG Project INPEX holds participating interests in 18 exploration blocks in the vicinity of the Ichthys LNG Project. To date, multiple gas reservoirs have been discovered including Crown, Lasseter, Mimia and Burnside. These gas reservoirs extend across
Slide 8: Abadi LNG Project
Abadi LNG Project Production Capacity Sufficiently Strong Project Economics Total output of natural gas (LNG equivalent): 10.5 million PSC term secured until 2055 tons per year including Excellent reservoir productivity enabling efficient • Approximately 9.5 million tons of LNG per year de
Slide 9: Progress on other key overseas projects supporting our business
Progress on other key overseas projects supporting our business Abu Dhabi Onshore Concession Abu Dhabi Offshore Oil Fields (In Production in Abu Dhabi) (Upper Zakum, Lower Zakum, Satah and Umm Al Dalkh) (In Production in Abu Dhabi) Target Production Capacity Upper Zakum: 1 million bbl/d ナダ Low
Slide 10: Natural Gas Business in Japan and Renewable Energy Business and Carbon Recycling
Natural Gas Business in Japan and Renewable Energy Business and Carbon Recycling Natural Gas Business in Japan Renewable Energy Business and Carbon Recycling Naoetsu LNG Terminal Methanation Testing Facility Natural Gas Sales Volume* Sarulla Geothermal Independent Power Producer (IPP) Project
Slide 11: FY2020/12 Net Production Volume
FY2020/12 Net Production Volume FY2020/12 net production increase reflects high availability of the Ichthys LNG Project. 600 572 573 4% 3% 500 39% (Thousand BOED) 42% 400 Americas Middle East/Africa 300 9% 10% Eurasia 200 Asia/Oceania 41% 44% Japan 100 0 5% 4% (Reference figures) FY2020/12 Same pe
Slide 12: Production Cost and Proved & Probable Reserves
Production Cost and Proved & Probable Reserves Production Cost per BOE (Excl. Royalty) Reserves*1 7,000 6,706 6,505 7.0 6,000 5,300 5,212 2,620 5,000 4,693 2,775 1,443 1,202 6.0 5.7 4,000 1,389 Million BOE US$/BOE 5.3 31.0 5.2 3,000 years*4 5.0 2,000 3,857 4,010 4,086 3,730 17.8 3,304 years*4 1,000
Slide 13: Investment and Cost Reduction Measures, Securing Sufficient Liquidity and Free Cash Flow
Investment and Cost Reduction Measures, Securing Sufficient Liquidity and Free Cash Flow Investment and Cost Reduction Measures In FY2020, achieved reduction of investment in overall development and exploration by 37% and 64%, respectively compared to our initial forecasts. (Surpassed May 2020 t
Slide 14: Business Development Strategy - Towards a Net Zero Carbon Society by 2050
Business Development Strategy - Towards a Net Zero Carbon Society by 2050 Takayuki Ueda Representative Director, President & CEO
Slide 15: Basic Policy on Management
Business Development Strategy - Towards a Net Zero Carbon Society by 2050 (1) Basic Policy on Management INPEX will proactively engage in energy structure reforms towards the realization of a net zero carbon society by 2050, while responding to the growing energy demands of Japan and the world and f
Slide 16: Goals and Initiatives Towards a Net Zero Carbon Society
Business Development Strategy - Towards a Net Zero Carbon Society by 2050 (2) 2. Goals and Initiatives Towards a Net Zero Carbon Society INPEX will set its climate change response goals to contribute to the realization of the Paris Agreement objectives in relation to climate change. 2050 2030 Scop
Slide 17: Change of Corporate Name
Change of Corporate Name To implement its business development as a unified group, the company will change its Japanese name from Kokusai Sekiyu Kaihatsu Teiseki Kabushiki Kaisha to Kabushiki Kaisha INPEX, effective April 1, 2021.* INPEX's English name, INPEX CORPORATION, will remain unchanged. INPE
Slide 18: Progress against Medium-term Business Plan 2018-2022
Progress against Medium-term Business Plan 2018-2022 Takayuki Ueda Representative Director, President & CEO
Slide 19: Progress against Medium-term Business Plan 2018-2022 and FY 2021/12 Outlook (1)
Progress against Medium-term Business Plan 2018-2022 and FY 2021/12 Outlook (1) FY2019/3, FY2019/12 and FY2020/12 Results FY 2021/12 Initiatives & Outlook (First, Second and Third Years of the Medium- (Fourth Year of the Medium-term Business term Business Plan) Plan) Ichthys LNG Project: Achieved
Slide 20: Progress against Medium-term Business Plan 2018-2022 and FY 2021/12 Outlook (2)
Progress against Medium-term Business Plan 2018-2022 and FY 2021/12 Outlook (2) FY 2019/12 FY 2019/3 FY 2020/12 FY 2021/12 FY 2022/12* Results Results Results Outlook Targets (9 months) Brent crude oil price (US$/ barrel) 70.86 64.27 43.21 53.00 60.00 Exchange rate 110.93 108.66 106.77 103.00 110.00
Slide 21: Progress against Medium-term Business Plan 2018-2022 and FY 2021/12 Outlook (3)
Progress against Medium-term Business Plan 2018-2022 and FY 2021/12 Outlook (3) (JPY) FY 2019/12 FY 2019/3 FY 2020/12 FY 2021/12 FY 2022/12* Results Results Results Outlook Targets (9 months) Development 471.0 billion 221.7 billion 167.2 billion 231.0 billion expenditure Exploration Investment for 1
Slide 22: Consolidated Financial Results for the year ended December 31, 2020
Consolidated Financial Results for the year ended December 31, 2020 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 23: Comparison of FY2020/12 Results with the same period last year
Comparison of FY2020/12 Results with the same period last year INPEX’s accounting period changed to the January to December period from the April to March period from the fiscal year ended December 31, 2019. FY2020/12 figures are compared with the (Reference figures) same period last year (Janua
Slide 24: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended December 31, 2020 (Reference) FY2020 Same Period Last Year Change % Change (Jan - Dec ’20) (Jan - Dec ’19) Net sales (Billions of yen) 1,171.2 771.0 (400.1) (34.2%) Crude oil sales 871.5 505.5 (366.0) (42.0%) Natural gas sales (incl
Slide 25: Crude Oil Sales
Crude Oil Sales (Reference) FY2020 Same Period Last Year Change % Change (Jan - Dec ’20) (Jan - Dec ’19) Net sales (Billions of yen) 871.5 505.5 (366.0) (42.0%) Sales volume (thousand bbl) 122,315 117,282 (5,033) (4.1%) Average unit price of overseas production ($/bbl) 65.32 40.31 (25.01) (38.3%) Av
Slide 26: Natural Gas Sales (excluding LPG)
Natural Gas Sales (excluding LPG) (Reference) FY2020 Same Period Last Year Change % Change (Jan - Dec ’20) (Jan - Dec ’19) Net sales (Billions of yen) 277.6 247.8 (29.7) （10.7%) Sales volume (million cf) 420,109 467,466 47,357 11.3% Average unit price of overseas production ($/thousand cf) 4.33 3.61
Slide 27: Statement of Income
Statement of Income (Reference) FY2020 Same Period Last Year Change % Change (Jan - Dec ’20) (Billions of Yen) (Jan - Dec ’19) Decrease in sales volume : (17.4) Net sales 1,171.2 771.0 (400.1) (34.2%) Decrease in unit price : (365.5) Exchange rate: (13.4) Cost of sales 511.1 439.8 (71.2) (13.9%) Oth
Slide 28: Analysis of Income before One-off Profit (Loss) Decrease
Analysis of Income before One-off Profit (Loss) Decrease * Income before one-off profit (loss) (Billions of Yen) = Net income (loss) attributable to owners of parent − one-off profit (loss) Copyright © 2021 INPEX CORPORATION. All rights reserved. 27
Slide 29: Analysis of Impact of One-off Profit (Loss)
Analysis of Impact of One-off Profit (Loss) (Billions of Yen) (億円) 100 Prelude FLNG Project (129.0) Eagle Ford (33.2) Lucius Oil Field (18.6) Bayu-Undan Gas-Condensate Field (8.9) 50 54.6 0 (50) (111.6) 13.8 39.9 (100) (5.1) (16.8) (8.2) (150) (189.9) (200) Income before Impairment loss Tax effect o
Slide 30: Balance Sheet
Balance Sheet Summary of financial information for Ichthys downstream JV (100% basis, including the Company’s equity share 66.245%) December 2019 December 2020 Change % Change (Billions of yen) (Billions of yen) • Current assets : 143.7 Current assets 419.8 387.0 (32.7) (7.8%) • Fixed assets : 3,457
Slide 31: FY2020 Cash Flow
FY2020 Cash Flow*1 (Billions of Yen) FCF +182.0 *2 *1 Including the Ichthys Downstream IJV *2 Including translation adjustments related to available fund Copyright © 2021 INPEX CORPORATION. All rights reserved. 30
Slide 32: Consolidated Financial Forecasts for the year ending December 31, 2021
Consolidated Financial Forecasts for the year ending December 31, 2021 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 33: Consolidated Financial Forecasts for the year ending December 31, 2021
Consolidated Financial Forecasts for the year ending December 31, 2021 Assumptions First Half (Jan to Jun 2021) Second Half (Jul to Dec 2021) Full Year (Jan to Dec 2021) Brent oil price ($/bbl) 53.0 53.0 53.0 Average exchange rate (¥/$) 103.0 103.0 103.0 Full Year FY2020/12 (Actual) FY2021/12 (Forec
Slide 34: FY2021/12 Financial Forecasts Analysis of Increase
FY2021/12 Financial Forecasts Analysis of Increase (Billions of Yen) * Income before one-off profit (loss) 120 = Net income (loss) attributable to owners of parent − one-off profit (loss) 42.6* 11.0 90 (7.5) (0.2) (0.5) 60 166.3 Exchange Rate (Yen/US$) FY2020/12 Actual 106.77 FY2021/12 Forecast 103.
Slide 35: Sales and Investment Plan for the year ending December 31, 2021
Sales and Investment Plan for the year ending December 31, 2021 FY2020/12 FY2021/12 Change % Change (Actual) (Forecast) Crude oil (thousand bbl) *1 117,282 111,732 (5,550) (4.7%) Natural gas (million cf) *2 467,466 481,431 13,965 3.0% Sales Volume Overseas 390,053 402,758 12,705 3.3% 77,413 78,673 1
Slide 36: 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, 2021*1 (Billions of yen) At Beginning of 1Q : +6.6 (-6.6) Brent Crude Oil Price; The impact on net income will cha