Slide 1: Financial Results for the year ended December 31, 2022
INPEX CORPORATION Financial Results for the year ended December 31, 2022 February 10, 2023
Slide 2: Agenda
Agenda Business Overview Consolidated Financial Results for the year ended December 31, 2022 Consolidated Financial Forecasts for the year ending December 31, 2023 Copyright © 2023 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: Business Overview
Business Overview Takayuki Ueda Representative Director, President & CEO
Slide 5: Business Activities in FY2022 – Oil and Gas Business
Business Activities in FY2022 – Oil and Gas Business – Oil and Gas Business Projects in Production Ichthys LNG (Australia) Planned shutdown maintenance works completed safely and as planned between July to August 2022. 112 LNG cargoes shipped in 2022. Net production volume (INPEX equity port
Slide 6: Business Activities in FY2022 – Net Zero Businesses
Business Activities in FY2022 – 5 Net Zero Businesses – 5 Net Zero Businesses Hydrogen Hydrogen & Ammonia CO2 recovery production facility facility Ammonia production facility CO2 compression Admin Took a final investment decision on drilling operations and the construction of facilities for the i
Slide 7: Highlights of FY2022 Financial Results
Highlights of FY2022 Financial Results External Environment (YoY) Average Brent oil price Average forex (JPY/USD) $99.0 40% 131.6 yen 20% Relaxed Increased production cut Net sales sales volume, Net production volume*2 by OPEC+, weaker yen, acquisition of increased unit Norwegian ¥2,324.6 billion +8
Slide 8: Planned Business Activities in FY2023 – Oil and Gas Business
Planned Business Activities in FY2023 – Oil and Gas Business – Oil and Gas Business Projects in Production Ichthys LNG (Australia) No large-scale shutdown maintenance work planned for 2023. Approximately 11 LNG cargo shipments per month expected for 2023. Forecasted net income contribution o
Slide 9: Planned Business Activities in FY2023 – Net Zero Businesses
Planned Business Activities in FY2023 – 5 Net Zero Businesses – 5 Net Zero Businesses Hydrogen & Ammonia Commence the drilling of wells and construction of facilities for the integrated demonstration of hydrogen and ammonia production and usage in Kashiwazaki City, Niigata Prefecture, Japan on whi
Slide 10: Highlights of FY2023 Financial Forecasts
Highlights of FY2023 Financial Forecasts External Environment (YoY) Assumed average Brent oil price Assumed average forex (JPY/USD) $75.0 ▲24% 125.0 yen ▲5% Net sales Net production volume*2 Stable operations at Ichthys etc. ¥1,885.0 billion ▲19% 639,000 boed +3% Reduced Net income Production cost p
Slide 11: Net Production Volume (boe per day)
Net Production Volume (boe per day) • Net production volume of oil and gas (thousand boe per day) 700 622 639 600 584 2% 2% 500 40% 43% Americas 400 Middle East/Africa 9% 12% Eurasia (Europe/NIS) 300 Asia/Oceania 200 Japan 45% 40% 100 0 4% 3% F'2021 FY2022 FY2023 (Forecast) * The production volume u
Slide 12: Management Targets
Progress against Medium-term Business Plan 2022-2024 • In 2022, INPEX maintained stable operations at Ichthys LNG, conducted operations to increase the production capacity of its Abu Dhabi projects and divested from certain upstream assets to optimize its portfolio. In addition, INPEX engaged in ini
Slide 13: FY2022 Cash Allocation of Operating Cash Flow before Exploration
FY2022 Cash Allocation of Operating Cash Flow before Exploration*1 (Billions of Yen) (FY2022 Actual) Brent $99.0, USD/JPY 131.6 yen (FY2022 Forecast at the beginning of the fiscal year) Assumptions: Brent $75.0, USD/JPY 110.0 yen Debt Reduction etc.*2 525.1 (+320.1) Debt Reduction etc.*2 About 205.0
Slide 14: FY2023 Cash Allocation Forecast of Operating Cash Flow before Exploration
FY2023 Cash Allocation Forecast of Operating Cash Flow before Exploration*1 (FY2022 Actual) Brent $99.0, USD/JPY 131.6 yen (FY2023 Forecast) Assumption: Brent $75.0, USD/JPY 125.0 yen Debt Reduction etc.*2 525.1 Debt Reduction etc.*2 About 190.0 Shareholder Returns Operating Cash Flow 110.0 or great
Slide 15: Shareholder Returns
Shareholder Returns Medium-term Business Plan 2022-2024 Strengthen shareholder returns in accordance with growth in financial performance, with stable dividends as a basis Aim for a total payout ratio of around 40% or greater Implement share buybacks based on business environment, financial
Slide 16: ESG Initiatives
ESG Initiatives Environment Received an A- score in the CDP 2021 climate change disclosure Recognized as environmentally sustainable company in Ministry of the Environment's ESG Finance Award Japan Updated INPEX’s HSE Policy and established environment-related commitments for biodiversity, wat
Slide 17: Climate Change Response Goals
Contributing to the realization of a net zero carbon society Climate Change Response Goals 2050 2030 Scope 3 NET ZERO*1 30% OR MORE*2 REDUCTION in absolute emissions reduction of net carbon intensity work together with (Scope 1+2) (Scope 1+2) all relevant stakeholders to *1 on INPEX equity share bas
Slide 18: Consolidated Financial Results for the year ended December 31, 2022
Consolidated Financial Results for the year ended December 31, 2022 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 19: Highlights of the Consolidated Financial Results
Highlights of the Consolidated Financial Results for the year ended December 31, 2022 FY2021 FY2022 Change % Change Net sales (Billions of yen) 1,244.3 2,324.6 1,080.2 86.8% Crude oil sales 905.1 1,778.6 873.4 96.5% Natural gas sales (including LPG) 320.5 525.1 204.5 63.8% Others 18.5 20.8 2.2 12.1%
Slide 20: Sales by Product
Sales by Product FY2021 FY2022 Change % Change Net sales (Billions of yen) 905.1 1,778.6 873.4 96.5% Sales volume (thousand bbl) 120,118 138,116 17,998 15.0% Crude Oil Average unit price of overseas sales ($/bbl) 68.43 97.71 29.28 42.8% Average unit price of domestic sales (¥/kl) 50,014 80,483 30,46
Slide 21: Statement of Income
Statement of Income (Billions of Yen) FY2021 FY2022 Change % Change Net sales 1,244.3 2,324.6 1,080.2 86.8% Increase in sales volume : +113.6 Increase in unit price : +616.9 Cost of sales 568.9 943.4 374.4 65.8% Exchange rate: +347.3 Others : +2.2 Gross profit 675.4 1,381.2 705.7 104.5% Cost of sale
Slide 22: FY2022 Analysis of Income
FY2022 Analysis of Income (Billions of Yen) Increase in sales volume : +113.6 (Crude oil: +135.5, Natural gas (including LPG): (21.8) ) Increase in unit price : +616.9 (Crude oil: +445.9, Natural gas (including LPG): +171.0 ) Exchange rate: +347.3 (Crude oil: +291.9, Natural gas (including LPG): +55
Slide 23: Balance Sheet
Balance Sheet Summary of financial information for (Billions of yen) December 31, 2021 December 31, 2022 Change % Change Ichthys downstream JV (100% basis, including the Company’s equity share Current assets 518.8 729.4 210.5 40.6% 66.245%) (Billions of yen) Tangible fixed assets 2,259.8 2,473.1 213
Slide 24: Statement of Cash Flows
Statement of Cash Flows (Billions of Yen) FY2021 FY2022 Change Income before income taxes 643.4 1,412.4 768.9 Depreciation and amortization 203.1 292.5 89.3 Impairment loss 14.1 25.7 11.6 Modification loss on financial assets - 85.4 85.4 Recovery of recoverable accounts under production sharing (cap
Slide 25: FY2022 Cash Flow
FY2022 Cash Flow*1 (Billions of Yen) FCF +683.8 *2 *1 Including cashflow of Ichthys LNG Pty Ltd, the Ichthys Downstream IJV (Incorporated Joint Venture), an equity method affiliate *2 Including translation adjustments related to available fund Copyright © 2023 INPEX CORPORATION. All rights reserved.
Slide 26: Consolidated Financial Forecasts for the year ending December 31, 2023
Consolidated Financial Forecasts for the year ending December 31, 2023 Daisuke Yamada Director, Managing Executive Officer, Finance & Accounting
Slide 27: Consolidated Financial Forecasts for the year ending December 31, 2023
Consolidated Financial Forecasts for the year ending December 31, 2023 Assumptions First Half (Jan to Jun 2023) Second Half (Jul to Dec 2023) Full Year (Jan to Dec 2023) Brent oil price ($/bbl)*1 77.5 72.5 75.0 Average exchange rate (¥/$) 125.0 125.0 125.0 *1 Quarterly breakdown of the Brent oil pri
Slide 28: FY2023 Financial Forecasts Analysis of Increase
FY2023 Financial Forecasts Analysis of Increase (Billions of Yen) Crude Oil Price (Brent) （US$/bbl） 500 FY2022 Actual 99.04 FY2023 Forecast 75.00 450 Exchange Rate (Yen/US$) 400 FY2022 Actual 131.64 FY2023 Forecast 125.00 63.5 350 (110.7* ) 300 (35.9) (21.2) (10.9) 1.7 (19.7) 250 (35.0) 438.2 200 Ma
Slide 29: 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, 2023*1 (Billions of yen) At Beginning of 1Q : +6.0 (-6.0) Brent Crude Oil Price; The impact on net income will cha
Slide 30: FY2023 Cash Flow Forecast
FY2023 Cash Flow* Forecast (Billions of Yen) FY2022 (Actual) FY2023 (Forecast) Change Development expenditure (Oil & Gas Business) 279.4 349.0 69.6 Development expenditure (5 Net Zero Businesses) 81.8 94.0 12.2 Exploration expenditure (inclusive of some 5 Net Zero Businesses) 30.4 71.0 40.6 Others (