Inpex : Financial Results for the three months ended March 31, 2024 Support Material

Support Material

Financial Results for the three months ended March 31, 2024

INPEX CORPORATION (Securities Code:1605)

May 14, 2024

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 known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause the Company's performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, without limitation:

• Price volatility and change in demand in crude oil and natural gas
• Foreign exchange rate volatility
• Change in costs and other expenses pertaining to exploration, development and production

The Company undertakes no obligation to publicly update or revise the disclosure of information in this presentation (including forward- looking information) after the date of this presentation.

1

Highlights of the Consolidated Financial Results for the three months ended March 31,2024

	1Q FY2023	1Q FY2024	Change	% Change
Average crude oil price (Brent) ($/bbl)	82.10	81.76	(0.34)	(0.4%)
Average exchange rate (¥/$)	132.40	148.62	16.22 yen	12.3%
depreciation	depreciation
Revenue (Billions of yen)	578.0	596.8	18.7	3.3%
Operating profit (Billions of yen)	374.7	380.1	5.3	1.4%
Profit before tax (Billions of yen)	377.2	372.9	(4.3)	(1.1%)
Profit attributable to owners of parent (Billions of yen)	146.7	121.8	(24.9)	(17.0%)
Basic earnings per share* (Yen)	112.40	96.82	(15.58)	(13.9%)

• Average number of INPEX shares issued and outstanding during the three months ended March 31, 2023: 1,305,995,701 shares
  Average number of INPEX shares issued and outstanding during the three months ended March 31, 2024: 1,258,249,977 shares

2

Revenue by Major Product

Revenue, Sales volume, Unit price and Exchange rate

		1Q FY2023	1Q FY2024	Change	% Change
	Revenue	399.2	450.1	50.8	12.7%
	(Billions of yen)
	Sales volume	36,677	37,338	661	1.8%
	(thousand bbl)
Crude Oil
	Average unit price of	82.20	81.12	(1.08)	(1.3%)
	overseas sales ($/bbl)
	Average exchange rate	132.43	148.60	16.17 yen	12.2%
	(¥/$)	depreciation	depreciation
	Revenue	168.9	138.8	(30.1)	(17.8%)
	(Billions of yen)
	Sales volume	128,241	130,976	2,735	2.1%
	(million cf)
Natural Gas	Average unit price of
(excluding
overseas sales	6.73	5.36	(1.37)	(20.4%)
LPG)
($/thousand cf)
	Average unit price of	110.67	77.07	(33.60)	(30.4%)
	domestic sales (¥/m3)
	Average exchange rate	132.89	148.70	15.81 yen	11.9%
	(¥/$)	depreciation	depreciation

* 1m3=41.8605MJ

Analysis of Revenue

(Billions of yen)

Crude Oil

+50.8

399.2				450.1
1Q FY2023	Increase in	Decrease in	Exchange	1Q FY2024
	sales	unit price	rate
	volume

Natural Gas(excluding LPG)

(30.1)

168.9

138.8

1Q FY2023	Increase in	Decrease in	Exchange	1Q FY2024
	sales	unit price	rate
	volume

3

Analysis of Profit (1Q FY2023 vs. 1Q FY2024)

(Billions of yen)

146.7

(24.9)

Business activities factors*2 (29.2)

Increase in research and development expenses, etc.

Increase in depreciation and royalty expenses related to Crude Oil, etc.

Increase in tax expense due to higher crude oil sales and income, etc.

・Increase in sales volume: +12.1 (Crude oil: +7.2, Natural gas: +4.9)

・Decrease in unit price: (52.2)

(Crude oil: (5.1), Natural gas: (44.3), LPG: (2.6))

・Exchange rate: +58.4

(Crude oil: +48.8, Natural gas: +9.3, LPG: +0.2)

One-off factors*3 +4.3

Gain on sale of	121.8
certain renewable
energy PJ assets in
Southeast Asia

	1Q FY2023	Increase in	Increase in	Increase in	Increase in	Equity in	Other income	Income tax	Divestment	1Q FY2024
	Exploration
	Profit	Revenue	Cost of sales	SG&A	earnings	(expenses)	expense	Profit
	expenses
	attributable to				of affiliates				attributable to
	owners of parent*1									owners of parent*1
*1	For the convenience of analyzing factors that cause changes in profit attributable to owners of parent, the items in the Consolidated Statements of Profit or Loss are rearranged and aggregated.
*2	With regard to business activities factors, impacts to Income tax expense are listed separately, and impacts to Profit attributable to non-controlling interests are included in Other income (expenses).			4
*3	With regard to one-off factors, impact to tax expense and profit attributable to non-controlling interests are included in each item.

Consolidated Financial Forecasts for the year ending December 31, 2024

	Full Year			Previous Forecasts		Revised Forecasts	Change	% Change
				(February 13,2024)			(May 14,2024)
Average crude oil price (Brent) ($/bbl)				73.0			80.0	7.0		9.6%
Average exchange rate (¥/$)					138.0			145.0	7 yen		5.1%
						depreciation		depreciation
Revenue (Billions of Yen)					1,931			2,178	247		12.8%
Operating profit (Billions of Yen)					1,010			1,210	200		19.8%
Profit before tax (Billions of Yen)					1,043			1,241	198		19.0%
Profit attributable to owners of parent (Billions of Yen)			330			360	30		9.1%
ROIC(%)						6.8			7.5	0.7		-
ROE(%)						7.7			8.4	0.7		-
Net debt/equity ratio						0.30			0.30	-		-
*Includes Ichthys downstream IJV and differs from institutional accounting basis
1st Half	Previous	Revised	Change	% Change	2	nd	Half	Previous	Revised	Change	% Change
Forecasts	Forecasts		Forecasts	Forecasts
(Reference information)
	(February 13,2024)	(May 14,2024)			(February 13,2024)	(May 14,2024)
Average crude oil price		75.5	82.5	7.0	9.3%	Average crude oil price	70.5	77.5	7.0	9.9%
(Brent) ($/bbl)		(Brent) ($/bbl)
Average exchange rate (¥/$)		138.0	148.0	10 yen	7.2%	Average exchange rate (¥/$)	138.0	142.0	4 yen	2.9%
	depreciation	depreciation	depreciation	depreciation
Revenue (Billions of Yen)		1,043	1,150	107	10.3%	Revenue (Billions of Yen)	888	1,028	140	15.8%
Operating profit		544	666	122	22.4%	Operating profit	466	544	78	16.7%
(Billions of Yen)		(Billions of Yen)
Profit before tax		559	678	119	21.3%	Profit before tax	484	563	79	16.3%
(Billions of Yen)		(Billions of Yen)
Profit attributable to owners		155	205	50	32.3%	Profit attributable to owners	175	155	(20)	(11.4%)
of parent (Billions of Yen)		of parent (Billions of Yen)	5

Analysis of Profit (Previous vs. Revised)

(Billions of yen)	Market factors	Business Activities factors
	+58.3	(14.3)

Other factors

(14.0)

+41.5

（US$/bbl）

+16.8

（yen/US$）

・Previous 138.0 ・Revised 145.0

+0.3

(11.0) (2.3) (1.0)

Increase in exploration activities surrounding Ichthys field

(13.0) (1.3)

・Previous 73.0 ・Revised 80.0

Increase in tax cost (PRRT) of Ichthys

Updating tax costs with optimizing subsidiary organizational structure

360.0

330.0

Profit	Impact from	Impact from	Production	Increase in	Increase in	Divestments	Taxes	Others	Profit
attributable to	Exploration	SG&A			attributable to
Crude oil	Exchange	activities
owners of parent	costs					owners of parent
price	rate
(Previous)							(Revised)

6

FY2024 Financial Forecasts Cash Flow*

(Billions of Yen)

Cash Flow from Operations before exploration investment

Cash Flow from Investment (inclusive of exploration investment)

Growth Investment

Development expenditure (Oil & Gas Business)

Development expenditure (5 Net Zero Business)

Exploration expenditure

(inclusive of some 5 Net Zero Business)

Others

(inclusive of sale of interests, etc)

Others

(purchase and disposal of investment securities etc.)

Free Cash Flow

Financial Cash Flow

Shareholder Returns

Cash and cash equivalents at end of the year

Previous	Revised
Forecasts	Forecasts	Change
(February 13,2024)	(May 14,2024)
			(Billions of yen)
714.0	844.0	130.0
(311.0)	(422.0)	(111.0)
(553.0)	(658.0)	(105.0)
(485.0)	(577.0)	(92.0)
(10.0)	(15.0)	(5.0)
(71.0)	(78.0)	(7.0)
13.0	12.0	(1.0)
242.0	236.0	(6.0)
403.0	422.0	19.0
(410.0)	(429.0)	(19.0)
(132.0)	(144.0)	(12.0)
200.0	200.0	0.0

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* Including cash flow of Ichthys LNG Pty Ltd, Ichthys downstream Incorporated Joint Venture, a Jointly controlled entity.

FY2024 Financial Forecasts

ROIC by Segment

	Previous Forecasts		Revised Forecasts	Change
(%)	(February 13,2024)		(May 14,2024)
O&G Japan		8.5	7.0	(1.5)

O&G Overseas Ichthys

6.7

7.5

0.8

O&G Overseas Others

10.7

11.8

1.1

Others

(7.7)

(10.1)

(2.4)

Renewable Energy	(0.4)	(1.8)	(1.4)
Hydrogen and CCUS	-	-	-

Consolidated financial statements

6.8

7.5

0.7

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FY2024 Shareholder Returns

	FY2023 actual	Previous forecast	Revised forecast
	（February 13, 2024）	（May 14, 2024）
DPS (Dividend per Share)	74 yen	76 yen	76 yen
Dividends	94.9 billion yen	Approx. 95.0 billion yen	Approx. 94.0 billion yen*2
Share Buybacks	100.0 billion yen	-	50.0 billion yen
Total Amount of Shareholder Returns	194.9 billion yen	Approx. 95.0 billion yen	Approx. 144.0 billion yen
	60.6%*1	Approx. 29%
Total Payout Ratio (%)	Approx. 40%
(aiming for above 40%)

*1 Based on IFRS. (52.5% based on JGGAP)

*2 Forecast reflects acquisition of treasury stock.

Background of Acquisition of Treasury Stock and Shareholder Returns Policy

• Revised full year forecast at the end of 1Q FY2024 considering stable production operations of key projects including Ichthys LNG as well as strong crude oil prices and a favorable exchange rate.
• Resolved a share buyback of up to 50 billion yen to conduct flexible shareholder returns based on the recognition of the discounted nature of recent share price levels and our "Sustainable Growth of Corporate Value" initiative announced last year.
• Will continue to consider additional shareholder returns at the time of the announcement of 2Q FY2024 earnings results and onwards, based on

the progress of its year-end forecasts, changes in external environment and other factors.

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