Slide 1: Financial Results for the year ended December 31, 2023
INPEX CORPORATION Financial Results for the year ended December 31, 2023 February 13, 2024
Slide 2: Table of Contents
Table of Contents 1. Business Overview 2. Consolidated Financial Results for the year ended December 31, 2023 3. Consolidated Financial Forecasts for the year ending December 31, 2024 Appendix Copyright © 2024 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: 1. Business Overview
1. Business Overview Takayuki Ueda Representative Director, President & CEO
Slide 5: Business Activities in FY2023 – Oil and Gas Business
Business Activities in FY2023 – Oil and Gas Business – • Maintained stable production operations overall. Shipped 129 LNG cargoes in 2023. Ichthys LNG • Confirmed facility capacity enhancements to produce 9.3 million tons of LNG per (Australia) year. • Realized net income contribution of 302.6 billi
Slide 6: Planned Business Activities after FY2024 – Oil and Gas Business
Planned Business Activities after FY2024 – Oil and Gas Business – • Acquire participating interest from Tokyo Gas (raising total participating interest from 66.245% to 67.82%) subject to fulfillment of certain conditions. • No large-scale shutdown maintenance work planned for 2024. Ichthys LNG • App
Slide 7: Business Activities in FY2023 – Net Zero Businesses
Business Activities in FY2023 – 5 Net Zero Businesses – • Commenced construction of surface plant facilities of Kashiwazaki Clean Hydrogen/Ammonia Project in Niigata Prefecture, Japan. Hydrogen & Ammonia • Joined global energy and chemical leaders to develop large-scale, low-carbon ammonia productio
Slide 8: Planned Business Activities after FY2024 – Net Zero Businesses
Planned Business Activities after FY2024 – 5 Net Zero Businesses – • Commissioning of Kashiwazaki Clean Hydrogen/Ammonia Project to begin in March 2025. Operational startup scheduled for August 2025. Hydrogen & Ammonia • Promote clean hydrogen and ammonia projects in Japan and other countries, start
Slide 9: Management Targets
Progress against Medium-term Business Plan 2022-2024 FY2022 FY2023 FY2024 FY2024 Targets (actual) (actual) (Expected) Assump- Brent Oil Price (US$ per barrel) 99.04 82.17 73.0 US$60 US$70 tions Exchange rate (JPY/US$) 131.64 140.66 138.0 110 110 Net income ¥461.0 billion ¥371.5 billion ¥330 billion
Slide 10: Net Production Volume (boe per day)
Progress against Medium-term Business Plan 2022-2024 Net Production Volume (boe per day)* Oil & Gas Japan Oil & Gas Overseas (Ichthys Project) Oil & Gas Overseas (Other Projects) （thousand boed） 622 630 642 395 390 206 220 21 20 2022/12 2023/12 2024/12 (forecast) Upper Zakum Oil Field Operation Site
Slide 11: Cash Allocation
Progress against Medium-term Business Plan 2022-2024 Cash Allocation Expected cash allocation for 2022-2024 (3-year period) Cash allocation for 2022-2024 (3-year period) Assumptions: Inclusive of Ichthys downstream IJV Assumptions: Inclusive of Ichthys downstream IJV Forecasts for FY2024 110 JPY/US$
Slide 12: Shareholder Returns
Progress against Medium-term Business Plan 2022-2024 Shareholder Returns FY2023 Shareholder Returns FY2024 Shareholder Returns (actual) (forecast) Share Buybacks Consider additional shareholder DPS(Dividend per Share) DPS(Dividend per Share) returns based on business ¥74（+12yen） ¥100.0 billion ¥76（+
Slide 13: Capital Efficiency
Capital Efficiency Aim for ROIC to stably exceed WACC, taking ROE and COE into consideration. FY2023 FY2024 （actual） （ forecast ） Average crude oil price (Brent) ($/bbl) 82.17 73.0 Average exchange rate (¥/$) 140.66 138.0 ROIC (%) 8.7% 6.8% WACC*1 (%) 6.4% 6.6% ROE (%) 9.4% 7.7% Cost of Equity (%) 8
Slide 14: ESG Initiatives
ESG Initiatives Environment Social Governance • Became first Japanese company to join OGMP • Based on our philosophy regarding D&I, we • Held a Board Meeting in Abu Dhabi, UAE and 2.0*, founded by United Nations Environment actively create an environment in which female deepened the relationship bet
Slide 15: 2. Consolidated Financial Results for the year ended December 31, 2023
2. Consolidated Financial Results for the year ended December 31, 2023 Daisuke Yamada Director, Senior Managing Executive Officer, Finance & Accounting
Slide 16: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended December 31, 2023 FY2022 (actual) FY2023 (actual) Change % Change Average crude oil price (Brent) ($/bbl) 99.04 82.17 (16.87) (17.0%) 9.02yen 6.9% Average exchange rate (¥/$) 131.64 140.66 depreciation depreciation Net sales (Billio
Slide 17: Sales by Product
Sales by Product FY2022 FY2023 Change % Change Net sales (Billions of yen) 1,778.6 1,609.2 (169.4) (9.5%) Sales volume (thousand bbl) 138,116 138,024 (92) (0.1%) Crude Oil Average unit price of overseas sales ($/bbl) 97.71 82.83 (14.88) (15.2%) 8.98yen 6.8% Average exchange rate (¥/$) 131.80 140.78
Slide 18: Analysis of Net Income FY2022 vs. FY2023
Analysis of Net Income FY2022 vs. FY2023 (89.5) (Billions of yen) Business activities factors (26.2) One-off factors (63.2) (post-tax net impact) FY2022: (36.0) FY2023: (5.8) Decrease in income taxes due to lower crude oil sales and income, etc. Increase in exploration expenses: (12.2) Increase in p
Slide 19: 3. Consolidated Financial Forecasts for the year ending December 31, 2024
3. Consolidated Financial Forecasts for the year ending December 31, 2024 Daisuke Yamada Director, Senior Managing Executive Officer, Finance & Accounting
Slide 20: Consolidated Financial Forecasts for the year ending December 31, 2024
Consolidated Financial Forecasts for the year ending December 31, 2024 Consolidated Financial Forecasts for the year ending December 31, 2024 (IFRS) （Billions of Yen） Brent oil price ($/bbl) 73.0 Average exchange rate (¥/$) 138.0 Revenue 1,931 Full Year Operating profit 1,010 Profit before tax 1,043
Slide 21: FY2024 Financial Forecasts Analysis of Increase
FY2024 Financial Forecasts Analysis of Increase (Billions of yen) Market factors Business Activities factors 400.0 Others factors (76.7) (54.3) Billions of Yen 131.0 Billions of Yen Billions of Yen 350.0 (41.5) +30.0 (2.9) 300.0 (70.3) (6.4) +53.9 250.0 (15.0) (19.3) +10.0 +40.0 200.0 (20.0) 371.5 M
Slide 22: 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, 2024*1 （Billions of Yen） At Beginning of 1Q : +6.0 (-6.0) The impact on net income will change in FY2024 as below; B
Slide 23: FY2024 Cash Flow Forecast
FY2024 Cash Flow* Forecast FY2022 FY2023 FY2024 Total (Billions of yen) (Billions of Yen) (actual) (actual) (forecast) FY2022-2024 Cash Flow from Operations 1,061.6 1,062.0 714.0 2,837.6 before exploration investment * Cash Flow from Investment FCF (377.8) (573.5) (311.0) (1,262.3) +403.0 (inclusive
Slide 24: ROIC by Segment
ROIC by Segment FY2024 Forecast （IFRS） FY2023 Actual （JGAAP） Invested Capital Invested Capital Adjusted Profit※1 Adjusted Profit※3 as at Year-End※2 ROIC（％） as at Year-End※2 ROIC（％） （Billions of yen） （Billions of yen） （Billions of yen） （Billions of yen） O&G Domestic 20.0 231.1 8.5 O&G Domestic 41.4 2
Slide 25: Appendix
Appendix
Slide 26: Ichthys project Cargoes Shipped by Product Type
Ichthys project Cargoes Shipped by Product Type 2018 2019 2020 2021 2022 LNG 11 104 122 117 112 Plant Condensate（Onshore） 1 19 22 21 21 Field Condensate（Offshore） 4 29 34 32 29 LPG 2 27 34 32 30 FY2023 January February March April May June July August September October November December Total LNG 11
Slide 27: Balance Sheet
Balance Sheet (Billions of yen) December 2022 December 2023 Change % Change Current assets 729.4 818.2 88.8 12.2% Summary of financial information for Ichthys downstream JV (100% basis, including the Company’s equity share 66.245%) is as follows: Tangible fixed assets 2,473.1 2,466.5 (6.5) (0.3%) (B
Slide 28: Statement of Income
Statement of Income (Billions of Yen) FY2022 FY2023 Change % Change Net sales Increase in sales volume: +36.6 2,324.6 2,165.7 (158.9) (6.8%) Decrease in unit price: (320.0) Cost of sales 943.4 893.9 (49.4) (5.2%) Exchange rate: +124.5 Others : (0.1) Gross profit 1,381.2 1,271.7 (109.4) (7.9%) Cost o
Slide 29: Other Income and Expenses
Other Income and Expenses (Billions of Yen) FY2022 FY2023 Change Note Other income 335.6 311.0 (24.6) Interest income 64.6 95.3 30.7 Dividend income 9.4 4.5 (4.9) Equity in earnings of affiliates decreased due to expense Equity in earnings of affiliates*2 165.6 40.9 (124.7) related to revaluation of
Slide 30: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) FY2022 FY2023 Change Income before income taxes* 1,416.1 1,261.4 (154.7) Depreciation and amortization* 292.5 252.2 (40.2) Impairment loss 25.7 89.0 63.2 Expense related to idle assets 9.5 10.4 0.9 Modification loss on financial assets and others 85.4 － (85.
Slide 31: Cash Allocation of Operating Cash Flow before Exploration
Cash Allocation of Operating Cash Flow before Exploration*1 （Billions of yen） FY2022 Actual FY2023 Actual FY2024 Forecast Assumption: Brent $99.0, US$/JPY 131.6 yen Assumption: Brent $82.2, US$/JPY 140.7 yen Assumption: Brent $73.0, US$/JPY 138.0 yen Debt Reduction etc.*2 2.9 Debt Debt Reduction etc
Slide 32: Net Sales
FY2023 Net Sales (Billions of Yen) Product FY2022 FY2023 Change % Change Crude Oil 5.9 4.5 (1.4) (24.2%) Natural Gas (excluding LPG) 199.7 220.8 21.1 10.6% Japan LPG 0 - (0.0) (100.0%) Other 8.8 7.5 (1.3) (15.6%) Total 214.6 232.8 18.2 8.5% Crude Oil 209.9 193.2 (16.7) (8.0%) Australia & Natural Gas
Slide 33: Sales Volume
FY2023 Sales Volume Product FY2022 FY2023 Change % Change Crude Oil (thousand bbl) 468 412 (57) (12.1%) Natural Gas (excluding LPG) Japan (million cf) 90,917 91,502 585 0.6% LPG (thousand bbl) 1 - (1) (100.0%) Crude Oil (thousand bbl) 15,527 16,712 1,185 7.6% Australia & Natural Gas (excluding LPG)
Slide 34: Net Production Volume
FY2023 Net Production Volume* Product FY2022 FY2023 Change % Change Crude Oil (thousand bbl) 964 897 △66 △6.9% Natural Gas (million cf) 36,836 34,427 △2,408 △6.5% Japan Iodine(ton) 559 541 △18 △3.2% Electric power generation (million KWh) 194 184 △10 △5.1% Australia & Crude Oil (thousand bbl) 16,546