Japan Petroleum Exploration Co., Ltd. · TSE:1662
Japan Petroleum Exploration — Investor Presentation (March 2022)
27 slides from Japan Petroleum Exploration's investor presentation, Mar 28, 2022
Slide 1: JAPEX Management Plan 2022-2030
JAPEX Management Plan 2022-2030 Improving Profitability and Building Medium-to Long -Term Business Foundation with Focus on Contributing to Realization of Carbon-neutral Society March 28, 2022 Japan Petroleum Exploration Co., Ltd. (Security Code: 1662) Copyright © 2022 Japan Petroleum Exploration Co
Slide 2: Introduction: Review of Current Vision and Business Plan
Introduction: Review of Current Vision and Business Plan Progress in the past 4 years, but significant changes in business environment Formulated in May 2018 Long-term Vision 2030：Growth strategy towards FY2030 Growth to the Comprehensive Energy Company Utilizing our Oil and Gas E&P*1 and its Supply
Slide 3: Assumption of Formulation and Basic Policy
Assumption of Formulation and Basic Policy Formulated as Medium- to Long-term Management Plan for FY2022-2030 Assumption: New management plan to respond to business environment quickly and flexibly Changes in our balance sheet (decrease in business assets and interest-bearing debt) Long-term v
Slide 4: Management Goals
Management Goals Long-term Target for FY2030 and Mid-term Target for FY2026 Quantitative target: Business Profit, ROE, Profit Composition Elements of Business Profit Operating profit Profit of entities accounted for using equity method and others*1 FY2030 *Total of business profit of each bu
Slide 5: Fund Allocation
Fund Allocation Allocate 500 billion yen to growth investments and shareholder returns Outlook of fund allocation (Cumulative of 9 years) Breakdown of Cash In Fund Allocation Growth Investment Additional development in Japan 30 billion yen Overseas projects acquisition 200 billion yen E&P 230 bill
Slide 6: Shareholder Returns
Shareholder Returns Adopt a consolidated dividends payout ratio to enhance shareholder returns Change in Basic policy Pay dividends in line with financial results each fiscal year with a target payout ratio of 30% from FY2022 Strive to maintain annual dividends of ¥50 per share even in a tempo
Slide 7: Priority Items by Business Field
Priority Items by Business Field Invest to Grow and Promote Existing Projects in Each Business Field * New initiatives are underlined Japan Overseas • Stable production in existing oil and gas • Promote existing projects fields • Acquire new interests E&P • Additional development in and around exist
Slide 8: Priority Item-1: E&P
Priority Item-1: E&P Contribute to early profit scale expansion and respond to low-carbonization Japan Overseas Continue to seek potentials Acquire new interests Additional development in existing fields and Consider mainly in North America and North Sea surroundings including offshore explo
Slide 9: Priority Item-2: I/U (Infrastructure/Utility)
Priority Item-2: I/U (Infrastructure/Utility) Transform business structure to withstand market and oil price volatility Japan Overseas Response to gas supply diversification LNG supply infrastructure development Provide energy services collaborating with city gas Launch ongoing projects and
Slide 10: Priority Item-3: CN (Carbon Neutral)
Priority Item-3: CN (Carbon Neutral) Contribute to a smooth transition for a Carbon-neutral Society in 2050 Japan Overseas Launch CCS/CCUS prototype projects by Participate in CCS/CCUS projects for early hub & cluster model profit earning and knowledge acquisition Mainly collaborate with exist
Slide 11: Positioning of the Plan toward 2050
Positioning of the Plan toward 2050 Contribute to CN-Society by oil & gas supply, renewable energy, and CCS/CCUS Future image from the Plan toward 2050 based on “JAPEX2050” Recognize that oil & gas will play a major role now and future: aim for both its stable supply and CN Society realization,
Slide 12: Timeline on each business field by FY2030
Timeline on each business field by FY2030 Aiming to strengthen E&P and I/U as well as to launch CCS/CCUS in CN FY2026 FY2030 Reference：JAPEX2050 Major actions of business fields on the Management Plan 2022-2030 Images of realization and collaboration ■Pursue potentials to development in domestic oil
Slide 13: Measures for Human Resource and Organization
Measures for Human Resource and Organization HR management and organization for new business structure and fields Enhance human capital management Organization changes as of April 1, 2022 Secure and assign human resources Reorganize business units to promote new following business changes manage
Slide 14: Addressing Climate Change
Addressing Climate Change Link business and other contributions to management responsibility Our commitment under “JAPEX2050” Contribute to the CN society realization Reduce GHG emissions through our business from business ourselves Under the consideration that transition to a CN society is our busi
Slide 15: Appendix
Appendix P15 ① Current plan: Progress status of targets and indicators P16 ② Current plan: Progress status of business profit P17 ③ Management targets as of FY2026/2030 and sensitivity P18 ➃ Fund allocation breakdown as of FY2026/2030 P19 ⑤ Business overview: Our oil and gas E&P sites P20 ⑥ Business
Slide 16: Current plan: Progress status of targets and indicators
Appendix ① Current plan: Progress status of targets and indicators Targets and Indicators toward FY2022 and progress in FY2018-2021 Target items FY2022 FY2021 Estimates at FY2018 FY2019 FY2020 Targets Forecast*1 FY2021 end ROE 5％ or more 3.5 6.5 (0.7) N/A Unachieved Domestic gas transaction volume
Slide 17: Current plan: Progress status of business profit
Appendix ② Current plan: Progress status of business profit Business Profit by business field（FY2019 onwards*1） (billion yen) Business field FY2019 FY2020 FY2021 Forecast *2 E&P 37.1 3.8 35.1 Infrastructure/Utility （5.1） 11.9 1.6 Others （5.7） （5.7） （6.9） Total 26.2 10.0 29.8 Business Profit by s
Slide 18: Management targets for FY2026/2030 and sensitivity
Appendix ③ Management targets for FY2026/2030 and sensitivity Management targets FY2021 FY2026 FY2030 Forecast*1 targets targets Business profit: billion yen (Operating profit + equity in earnings of affiliates and other*2) 29.8 30.0 50.0 (Breakdown) E&P 35.1 23.0 27.0 I/U 1.6 12.0 27.0 CN - 1.0 2
Slide 19: Fund allocation breakdown as of FY2026/2030
Appendix ➃ Fund allocation breakdown as of FY2026/2030 Cash-in assumption (billion yen) Cumulative total Cumulative total for FY2022-2026 (5 years) for FY2022-2030 (9 years) Operating cash flow 200.0 380.0 Cash on hand + Bank loans 100.0 120.0 Cash-in total 300.0 500.0 Cash-out assumption (billi
Slide 20: Business overview: Our oil and gas E&P sites
Appendix ⑤ Business overview: Our oil and gas E&P sites development and O&G [3] UK North Sea: Seagull Project [4] Russia・Sakhalin 1 Project* production site * Included in our OIL sales profit [1] Iraq: Garraf Project* [5] United States: O&G Tight Oil Development* OIL [A] Japan: Domestic oil and gas
Slide 21: Business overview: I/U - Gas supply
Appendix ⑥ Business overview: I/U - Gas supply Features of JAPEX's domestic gas supply network High-pressure gas pipeline network over 800 km total 2 LNG terminals for ocean-going carriers Capable to supply from Sea of Japan and Pacific Ocean Domestic gas supply Domestic produced gas and regasif
Slide 22: Business overview: I/U - Electricity
Appendix ⑦ Business overview: I/U - Electricity [1] Abashiri Biomass Power Plant No.2&3 BIO Total 6 sites Total output 1,339,550kW [2] Mega solar power generation at JAPEX Hokkaido District Office* (Renewable energy 5 sites Renewable energy 159,550kW) PV [3] Yufutsu Solar Power Plant PV Power plan
Slide 23: Business overview: CN - CCS/CCUS
Appendix ⑧ Business overview: CN - CCS/CCUS Required factors to realize a hub & cluster CCS/CCUS Verification and Establishment of Inter-company and Cross-industry Examination and Development of Technology Collaboration Legal Systems, etc. Survey of suitable sites for CO2 storage and Collectio
Slide 24: Corporate structure for CN business promotion
Appendix ⑨ Corporate structure for CN business promotion Establish CN Business Promotion Committee on April 1, by the executives of related divisions Promote company-wide initiatives for CN-related businesses with a focus on CO2 underground storage-related businesses, including renewable energy
Slide 25: Our capabilities and possibilities in CCS/CCUS
Appendix ⑩ Our capabilities and possibilities in CCS/CCUS Subsurface investigation (Geophysical Exploration) Well drilling from land to subsea floor Well management/monitoring Select candidate locations for CCS/CCUS, and execute CO2 injection, storage, and monitoring Technical capabilities to comp
Slide 26: Diversity, Equity & Inclusion (DE&I) Policy
Appendix ⑪ Diversity, Equity & Inclusion (DE&I) Policy Basic Policy (Established in December 2021) JAPEX diversity policy established in 2016 revised to incorporate the concepts of equity and inclusion JAPEX Diversity, Equity & Inclusion (DE&I) Policy（Established in December 2021） In order to re
Slide 27: Essential Energies for Essential Needs
Essential Energies for Essential Needs Japan Petroleum Exploration Co., Ltd. Copyright © 2022 Japan Petroleum Exploration Co., Ltd. All rights reserved. 26
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