Note: The following report is an English translation of the Japanese-language original.

PresentationPresentation ofof ConsolidatedConsolidated ffinancialinancial rresultsesults forfor eendednded MarMarchch 3311,, 20120111

MayMay 1616 ,, 20112011

Japan Petroleum Exploration Co., Ltd.

copyright©2011 JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights reserved. Cautionary statement

Any information contained herein with respect to JAPEX’s plans, estimates, strategies and other statements that are not historical facts are forward-looking statements about the future performance of JAPEX. Readers should be aware that actual results and events may differ substantially from these projections due to various factors.

The provision of this document should not be construed as a solicitation for investment.

Copyright : All information contained herein is protected by copyright, and may not be copied or reproduced without the prior consent of JAPEX.

Note: The following abbreviations are used within this document: 1H = First half (1Q-2Q) 2H = Second half (3Q-4Q) (a) = Actual result (e) = Estimate

Any inquiries about the information contained herein or other Investor Relations questions should be directed to:

Investor Relations Group, Media & Investor Relations Department, Japan Petroleum Exploration Co., Ltd. TEL: +81-3-6268-7111

2 ContentsContents

１．１．BusinessBusiness OverviewOverview

２．２．ActualActual resultsresults forfor FY2011FY2011

３．３．EstimateEstimatess forfor FY2012FY2012

４．４．NewNew MMeeddiumium--ttermerm BusinessBusiness PlanPlan （（ FYFY20120122 -- FY2016FY2016 ））

3 BusinessBusiness OverviewOverview

PresidentPresident OsamuOsamu WatanabeWatanabe

4 Business Overview Trends in Crude oil prices and Foreign exchange rates

$140 ¥130 $130 ¥125 $-denominated JCC price $/bbl $120 (left axis) ¥120

$110 ¥115 \ /$ 】 $100 ¥110 Exchange rate \/$ $90 ¥105 (right axis) $80 ¥100

$70 ¥95 Exchange rate 【 $60 ¥90 [JCC Price] $-denominated $/bbl $50 ¥85 $40 ¥80 2007-04 2007-05 2007-06 2007-07 2007-08 2007-09 2007-10 2007-11 2007-12 2008-01 2008-02 2008-03 2008-04 2008-05 2008-06 2008-07 2008-08 2008-09 2008-10 2008-11 2008-12 2009-01 2009-02 2009-03 2009-04 2009-05 2009-06 2009-07 2009-08 2009-09 2009-10 2009-11 2009-12 2010-01 2010-02 2010-03 2010-04 2010-05 2010-06 2010-07 2010-08 2010-09 2010-10 2010-11 2010-12 2011-01 2011-02 2011-03 2011-04 Japan Crude Cocktail (JCC) Price in the first 20 days of April 2011 on a prompt report basis : USD 111.20 / bbl Yen 82.45 / USD 5 Business Overview Actual results for FY2011 and Estimate for FY2012 (Highlight)

■ Actual results for FY2011 ( vs FY2010) Billion ￥ 223.4 FY2010 FY2011 60 225 [ Billion ￥] change Net Sales (right axis) (a) (a) 55 220 Net Sales 179.7 199.6 19.9 11% Operating income (left axis) Operating income 13.1 13.8 0.7 5% 50 215 Ordinary income (left axis) Ordinary income 23.2 17.1 (6.1) (26%) Net income (left axis) 45 210 Net income 17.9 10.0 (7.9) (44%) JCC price 67.50 82.69 15.19 23% 40 205 USD/bbl 199.6 Exchange rate 35 200 92.74 86.24 (6.50) (7%) Yen/USD

Billion30 ￥ 195 ■ Estimate for FY2012 ( vs FY2011) FY2011 FY2012 [ Billion ￥] change 25 190 (a) (e) Net Sales 199.6 223.4 23.8 12% 20 23.2 185 Operating income 13.8 11.7 (2.1) 15% 15 180 (9%) 17.9 Ordinary income 17.1 15.6 (1.5) 17.1 179.7 15.6 Net income 10.0 11.5 1.5 15% 10 13.1 13.8 175 11.7 11.5 JCC price 10.0 82.69 90.00 7.31 9% 5 170 USD/bbl Exchange rate 86.24 85.00 (1.24) (1%) - 165 Yen/USD FY2010 FY2011 FY2012 (e)(e) 6 Business Overview Domestic exploration plan for FY2012

◆Exploration well drilling schedule FY2012 Total ●Exploration well: 1 well 1Q 2Q 3Q 4Q Depth ■Seismic survey : 2 sites 4 5 6 7 8 9 10 11 12 1 2 3 Akeno A1 5,070m Exploration well Akeno A1 (5,070m) ◆ Geophysical prospecting survey plan : 2sites

2D seismic survey 25km in Niigata Prefecture (Yoneyama)

2D seismic survey 39km in Yamagata Prefecture (Southern Mt. Chokai)

◇Result for FY2011 Southern Mt. Chokai 2D (39km) FY2011 Total 1Q 2Q 3Q 4Q Depth 4 516 7 8 9 10 11 12 2 3 Akebono SK-5D 4,975m Succeeded Extension well Yoneyama 2D (25km) Otomo SK-1D 3,102m Abandoned Exploration well

7 Business Overview CAPEX plan for FY2012

Billion ￥ Billion ￥ FY12 [ Billion ￥] FY08 FY09 FY10 FY11 (e) CAPEX 41.7 30.9 28.8 21.9 30.7 45 45

Depreciation 5.1 and 16.6 21.5 23.2 24.5 23.8 40 40 amortization 35 35 Main items of CAPEX for FY2012 0.7 30 30 4.7 24.5 23.8 Domestic CAPEX ¥ 12.0 billion ◆Hokkaido 25 25 - LNG receiving terminal for domestic vessels 36.6 18.7 23.2 3.1 - CO2 emission reduction facility 20 21.5 20 (Both projects have continued from FY2010) 30.2 ◆Acquire a new facility for disaster recovery from the 15 16.6 15 Great East Japan Earthquake 24.1

10 18.8 10 Overseas CAPEX ¥ 18.7 billion 12.0 ◆Iraq 5 5 -Development of Garraf oil field ◆Canada -Improvement of production facility for the oil sand - - project FY08 FY09 FY10 FY11 FY12 ◆Indonesia CAPEX（overseas） (e) -Development of gas field (Ache Block A) CAPEX（domestic） Depreciation and amortization

8 Business Overview Overseas business : Activities in strategic regions

Canada Sakhalin -Oil sands development -Sakhalin 1 Project (production & exploration (reserve evaluation)) (production)

North Africa

Middle East -Iraq : Garraf oil field (development)

-Legend- Southeast Asia Strategic regions -Kangean Block (production & development) Blocks in which our cons -Ache Block A (development & exploration) equity-method affiliates, etc. hold interest. -Buton (exploration) -Universe Gas & Oil (production) Iran : JJI S&N B.V. olidated subsidiaries, -Japan CBM (exploration) The project is planned to be closed after receiving the final reward from National Iranian Oil Company.

9 Business Overview Current status of overseas business ① Canada oil sands

■Areas in which JACOS holds interest in oil sands leases Canada Oil Sands Co., Ltd. (CANOS) Project company (86.64% owned by JAPEX ) Japan Canada Oil Sands Ltd. (JACOS) Operator (Local subsidiary, wholly owned by CANOS) Block Interest Hangingstone 3.75 section -Producing around 7,000 - 8,000 bbl/d 100% -Cumulative production of 23.89 million bbl (as of end-January, 2011) Expansion project of undeveloped part of Hangingstone area 75% -Additional production of 35,000 bbl/d at the maximum

Schedule

Applied development approval Apr. 2010 Started FEED 2011 Make FID after acquiring development approval Winter of Start construction 2011 to 2012 2013 ■Areas where oil sand resources were evaluated: The Hangingstone area, the Chard area, the Corner area and the Thornbury area End-2014 Plan to commence production were evaluated. The evaluated areas consist of solely owned and jointly owned areas, are 788.4km2 (gross) or 373.4km2 (net). Bitumen also exists in the Liege area, but there is no bitumen development plan at present due to the subsurface ■ Contingent resources of undeveloped oil sands areas held by conditions of its existence. JACOS : 1,717 million bbl (as of end-December 2008) 10 Business Overview Current status of overseas business ② Sakhalin 1 Project

Sakhalin 1 Consortium Interest Exxon Neftegas Ltd. 30% Sakhalin Oil and Gas Development Co., Ltd. (SODECO) 30% Odoptu

Minister of Economy, Trade and Industry : 50.00% JAPEX : 14.46% ITOCHU Corp. : 14.46% Marubeni Corp. : 11.68% INPEX : 5.74% ITOCHU Oil Exploration Co., Ltd. : 3.66% ONGC 20% SMNG-Shelf 11.5% Rosneft - Astra 8.5%

Arkutun-Dagi Oct. 2005 Chayvo oil and gas field Commenced production of crude oil

Oct. 2006 Commenced exports of Sokol crude

Feb. 2007 Achieved peak gross production target (250,000 bbl/d)

Jun. 2008 Achieved cumulative production of 100 million bbl

Sep. 2010 Odoptu oil and gas field Chayvo Commenced production of crude oil

Arkutun-Dagi oil and gas field Now under preparation for development 11 Business Overview Current status of overseas business ③ Iraq

Garraf development project North Oil PETRONAS JAPEX Company Contractors (Operator) Contract type Development and Production Service Contract (NOC)

Counterparty South Oil Company (SOC) Payment share 60% 40％ - 20 years Contract term Participating interest 45％ 30％ 25％ （may be extended for maximum 5 years）

2010 The contract effect on Feb.10, 2010 2011 Commence initial production at 2012 50,000 bbl/d

～ Increase production gradually

2016

Achieve plateau production target of 2017 230,000 bbl/d Garraf ■ Expected cumulative production during the contract term : around 1.3 billion bbl

12 Business Overview Current status of overseas business ④ Indonesia: Kangean Block

Jakarta Kangean Energy Indonesia Ltd. (KEI) Project Surabaya and two other companies. Java Island company (Equity-method affiliates)

Pagerungan Utara oil field (Production)

West Kangean gas field (Exploration) Kangean Island

Pagerungan gas field (Production) East Java Pipeline Sepanｊang Island oil field (Production) TSB gas field (Development) To Surabaya

Block Kangean Block (offshore East Java） Interest 25% Operator KEI

■ Current gross production : Crude oil equivalent of around 10,000 boe/d. ■ Pagerungan Utara oil field : Commenced production of 6,000 bbl/d on January 2011. □ TSB gas field : Plan to commence production of 300 million cf/d (around 50,000 boe/d in crude oil equivalent) in 1H 2012. ■ Plan to expand gross production to around 60,000 boe/d through the above additional production. ■ Production Sharing Contract (PSC) : Effective till 2030. 13 Business Overview Current status of overseas business ⑤ Indonesia: Ache Block A

Project company Japex Block A Ltd.

Interest 16.67% Ache Block A Block (northern Sumatra) Ache Block A

Operator Medco

Around 100 million cf/d Gross production (around 20,000 boe/d in crude oil equivalent ） Jakarta

2010 Approved extension PSC Concluded extension PSC Contract term : 20 years from September 1, 2011 2011 Start development activities to commence gas production 2012 2013 Alur Rambong gas field Julu Rayeu gas field Gross production of around 100 million cf/d Alur Siwah gas field

14 Business Overview Current status of overseas business ⑥ Indonesia: Buton Block

Project company Japex Buton Ltd. Airborne gravity and magnetic surveys 2008 2D seismic surveys Interest 40%

2009 Selected the exploration well structure Buton Block Block (onshore/offshore block on Buton Island, Southeast Sulawesi) 2011 Plan to drill 1st exploration well

Jakarta

Buton Block

15 ActualActual resultsresults forfor FY2011FY2011

ExecutiveExecutive ViceVice PresidentPresident HiroshiHiroshi SatoSato

16 Actual results for FY2011 ( Highlight )

FY2011 FY2010 [ Million ￥] Initial Revised Revised Actual estimate estimate ① estimate ② Actual (May ‘10) (Nov. ‘10) (Feb. ‘11) Net Sales 179,752 196,891 192,319 194,606 199,651 Operating income 13,119 13,267 8,144 9,396 13,849 Ordinary income 23,206 14,908 10,454 13,028 17,122 Net income 17,939 10,265 7,434 9,083 10,010

JCC price USD/bbl 67.50 80.00 79.53 81.62 82.69 Exchange rate Yen/USD 92.74 90.00 87.56 86.37 86.24 Bitumen price CAD/bbl 50.15 56.65 49.31 48.67 48.32 Exchange rate Yen/CAD 88.07 85.00 80.00 81.47 81.47 ‹Initial estimate (May ‘10) Revised estimate ① (Nov. ‘10) 【－】 Downward revision of the production and sales plans for natural gas & crude oil 【－】 Downward revision of crude oil prices & bitumen prices

‹Revised estimate ① (Nov. ‘10) Revised estimate ② (Feb. ‘11) 【＋】 Rise in crude oil prices 【＋】Decrease in exploration expenses 【＋】Improve in non-operating income (expenses)

‹ Revised estimate ② (Feb. ‘11) Actual results 【＋】Rise in natural gas prices & crude oil prices 【＋】Increase in demand 【－】Loss on Great East Japan Earthquake Ordinary income ¥ 17.1 billion (+¥4.0billion ) Net income ¥10.0 billion(+¥0.9billion )

17 Actual sales of Natural gas in FY2011 (vs FY2010)

FY2010 FY2011 change 1H (a) Full (a) 1H (a) Full (a) 1H Full Sales volume Million M3 643 1,499 696 1,553 53 54 Natural gas: Net sales Million ￥ 24,924 55,5931,079 27,039 61,090 2,115 5,496 74 Of which, Domestically produced gas: Sales volume Million M3 454 529 1,185 105 Sales volume of “Domestically produced gas” stated herein does not include purchased gas. Natural gas Million M3 (supplied by gas pipeline ) 1,800 Sales volume （total） 1,600 Of which, domestically produced gas 1,400 1,553 1,499 1,200 1,185 Sales volume increased by 54 million M3 (+4%) vs FY10 1,000 1,079 -Increase in demand for industrial users and commercial-scale 800 utility gas customers

600 Net sales increased by ¥54 billion (+10%) vs FY10 400 -Increase in demand (+54 million M3 (+4%)) 200 -Rise in sales prices

- FY2010 FY2011 18 Actual sales of Crude oil in FY2011 (vs FY2010)

Sales volume : Thousand KL 967FY 2010 FY 2011 change Net sales : Million ￥ 1H (a) Full2,125 (a) 1H (a) Full (a) 1H Full Sales volume 946 1899 (21) (226) Crude oil: Net sales 33,008250 80,742 38,242 77,629 5,233 (3,113) Breakdown of equity oil 564

Domestically produced Sales volume 246 547 (4) (16) crude oil: Net sales 9,394 23,122 11,083 25,777 1,689 2,655

Overseas subsidiary Sales volume 18823 25 3 5 (20) (20) crude oil: Net sales 598 411690 117 187 (480) (502) Sales volume 197 409 9 (2) Bitumen: Net sales 4,140 11,433 5,512 10,141 1,372 (1,292) Oil price and Exchange rate assumptions JCC price USD/bbl 56.83 67.50 78.95 82.69 22.12 15.19 Exchange rate Yen/USD 96.36 92.74 90.71 86.24 (5.65) (6.50) Bitumen price CAD/bbl 42.10 50.15 52.98 48.32 10.87 (1.83) Exchange rate Yen/CAD 82.97 88.07 83.76 81.47 0.79 (6.60)

Domestically produced crude oil : 【＋】 Rise in crude oil prices FY 547 5 409 2011 Overseas subsidiary crude oil : FY 【－】 Expiry of contract term for equity oil of Japex New Nanhai Ltd. 564 25 411 2010 Bitumen : 【－】Rise in royalty 【－】Strong yen - 200 400 600 800 1,000 Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil. Thousand KL Royalty is excluded in the net sales and price of Bitumen. Sales volume and net sales of “Overseas subsidiary crude oil” are the sum totals of the sales volumes and net sales reported by two overseas consolidated subsidiaries (Japex New Nanhai Ltd. and Japex (U.S.) Corp.). 19 Actual results for FY2011 (vs FY2010)

FY2010 FY2011 ≪Causes of increase(+) or decrease(-) ≫ [ Million ￥] change (a) (a) Gross profit Net sales 179,752 199,651 19,898 Domestic crude oil and natural gas + ¥2.1 billion Gross profit 54,285 54,732 447 Overseas consolidated subsidiaries - ¥1.9 billion Exploration expenses 10,396 9,798 (597) Exploration expenses SG&A expenses 30,769 31,084 314 Domestic exploration - ¥1.8 billion Overseas exploration + ¥2.4 billion Operating income 13,119 13,849 730 Non-operating income (expenses) Non-operating income 10,087 3,272 (6,815) Dividends income - ¥5.5 billion (expenses) Loss on valuation of securities Ordinary income 23,206 17,122 (6,084) - ¥1.0 billion Extraordinary income Extraordinary income (losses) 162 (4,166) (4,328) (losses) Loss on adjustment for changes of accounting standard for asset retirement obligations Income taxes 4,443 2,161 (2,282) - ¥2.3 billion Loss on Great East Japan Earthquake Minority interests in income 986 783 (202) - ¥1.5 billion Net income 17,939 10,010 (7,928)

20 EstimatesEstimates forfor FY2012FY2012

ExecutiveExecutive ViceVice PresidentPresident HiroshiHiroshi SatoSato

21 Estimates for FY2012 (Point)

FY2011 FY2012 change [ Million ￥] 1H (a) Full (a) 1H (e) Full (e) 1H Full Net Sales 92,369 199,651 101,256 223,479 8,887 23,827 Operating income 3,845 13,849 5,722 11,757 1,876 (2,093) Ordinary income 4,929 17,122 7,362 15,634 2,433 (1,488) Net income 1,896 10,010 5,459 11,528 3,563 1,517

JCC price USD/bbl 78.95 82.69 90.00 90.00 11.05 7.31

Exchange rate Yen/USD 90.71 86.24 85.00 85.00 (5.71) (1.24)

Bitumen price CAD/bbl 52.98 48.32 45.48 47.82 (7.50) (0.50)

Exchange rate Yen/CAD 83.7681.47 85.00 85.00 1.24 3.53

Point FY2012 vs FY2011 Operating income ¾ Gross profit -¥ 2.3 billion -Transportation on consignment income -¥ 2.0 billion ¾ Exploration expenses +¥ 0.3 billion -Domestic Exploration expenses Ordinary income ¾ Non-operating income +¥ 0.6 billion -Loss on valuation of securities -¥ 1.4 billion (expenses) Net income ¾ Extraordinary income +¥ 3.9 billion -Application of new accounting standards +¥ 1.5 billion (losses) -Loss on Great East Japan Earthquake ¾ Income taxes -¥ 1.0 billion 22 Estimated Natural gas sales in FY2012

FY2011 FY2012 change 1H (a) Full (a) 1H (e) Full (e) 1H Full Sales volume Million M3 696 1,553 754 1,714 58 160 Natural gas: Net sales Million ￥ 27,039 61,0901,185 32,493 73,585 5,45415 12,494 Of which, Domestically produced gas: Sales volume Million M3 529 545 1,210 25

Sales volume of “Domestically produced gas” stated herein does not include purchased gas. Natural gas Million M3 ( supplied by gas pipeline ) 1,800 Sales volume （total） 1,600 1,714 1,400 1,553 Of which, domestically produced gas

1,200 1,210 1,000 1,185 Sales volume increased by 160 million M3 (+10%) vs FY11 800 -Increase in demand for utility gas customers and industrial users

600 Net sales increased by ¥124 billion (+20%) vs FY11 400 -Increase in demand ( +160 million M3 (+10%)) -Rise in sales prices 200

- FY2011 FY2012 23 Estimated Crude oil sales in FY2011

Sales volume : Thousand KL 946FY 2011 FY 2012 change Net sales : Million ￥ 1H (a) Full1,899 (a) 1H (e) Full (e) 1H Full Sales volume 948 1,949 2 50 Crude oil: Net sales 38,242246 77,629 41,774 86,093 3,532 8,464 Breakdown of equity oil 547

Domestically produced Sales volume 256 553 10 6 crude oil: Net sales 11,083 25,777 12,528 26,978 1,445 1,200

Overseas subsidiary Sales volume 1973 5 1 2 (2) (3) crude oil: Net sales 117 409187 56 102 (61) (85) Sales volume 191 403 (6) (6) Bitumen: Net sales 5,512 10,141 4,645 10,323 (867) 183 Oil price and Exchange rate assumptions JCC price USD/bbl 78.95 82.69 90.00 90.00 11.05 7.31 Exchange rate Yen/USD 90.71 86.24 85.00 85.00 (5.71) (1.24) Bitumen price CAD/bbl 52.98 48.32 45.48 47.82 (7.50) (0.50) Exchange rate Yen/CAD 83.76 81.47 85.00 85.00 1.24 3.53

Domestically produced crude oil : FY 553 2 403 【＋】 Rise in crude oil prices 【＋】Increase in sales volume 2012

Overseas subsidiary crude oil : 【－】 Decrease in sales volume FY 547 5 409 Bitumen : 2011 【＋】 Rise in prices 【＋】 Weak yen 【－】 Rise in royalty 【－】 Decrease in sales volume - 200 400 600 800 1,000 Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil. Royalty is excluded in the net sales and price of Bitumen. Thousand KL Sales volume and net sales of “Overseas subsidiary crude oil” are the sum totals of the sales volumes and net sales reported by two overseas consolidated subsidiaries (Japex New Nanhai Ltd. and Japex (U.S.) Corp.). 24 Estimates for FY2012 ≪Causes of increase(+) or decrease(-) ≫ FY2011 FY2012 [ Million ￥] change (a) (e) Gross profit Domestic crude oil and natural gas Net sales 199,651 223,479 23,827 + ¥2.7 billion Expenses incurred in connection with increase Gross profit 54,732 52,361 (2,372) in purchase volume of LNG - ¥2.2 billion Exploration expenses 9,798 9,446 (353) Transportation on consignment income -¥2.7 billion

SG&A expenses 31,084 31,158 74 Exploration expenses Domestic exploration + ¥0.8 billion Operating income 13,849 11,757 (2,093) Overseas exploration - ¥0.4 billion Non-operating income (expenses) 3,272 3,877 605 Non-operating income (expenses) Loss on valuation of securities Ordinary income 17,122 15,634 (1,488) + ¥1.0 billion Dividends income -¥0.3 billion Extraordinary income (losses) (4,166) (255) 3,912 Extraordinary income (losses) Income taxes 2,161 3,245 1,084 Loss on adjustment for changes of accounting standard for asset retirement obligations Minority interests in income 783 607 (177) + ¥2.3 billion Loss on Great East Japan Earthquake + ¥1.5 billion Net income 10,010 11,528 1,517

25 Oil price and Exchange rate assumptions and impact on profits

JCC price Exchange rate Bitumen price Assumption CAD 47.82 /bbl USD 90 /bbl Yen 85 /USD （ Yen 85 /CAD ）

USD 1 /bbl increase in A weakening in the yen to CAD 1/bbl increase in Impact on Profits crude oil prices would push Yen 5/USD would push bitumen prices would push profits up by... profits up by… profits up by…

( 25.4 thousand CAD ) Operating income 320 million Yen 1,170 million Yen 220 million Yen (22.2 thousand CAD ) Net income 200 million Yen 800 million Yen 190 million Yen

FY2011 FY2012 change 1H (a) 2H (a) Full (a) 1H (e) 2H (e) Full (e)

JCC price USD/bbl 78.95 85.67 82.69 90.00 90.00 90.00 7.31

Exchange rate Yen / USD 90.71 82.95 86.24 85.00 85.00 85.00 (1.24)

Bitumen price CAD/bbl 52.98 43.98 48.32 45.48 49.93 47.82 (0.50)

Exchange rate Yen /CAD 83.76 81.47 81.47 85.00 85.00 85.00 3.53 Note1: Royalty is excluded in “Bitumen price”. Note2: In addition to the impact of exchange rate fluctuations shown on the above, translation adjustments of foreign-currency- denominated receivables and payables also occur. Actual profits are influenced by a variety of other factors besides crude oil prices and exchange rates. 26 NewNew MediumMedium--termterm BusinessBusiness PlanPlan （（ FY2012FY2012 -- FY2016FY2016 ））

PresidentPresident OsamuOsamu WatanabeWatanabe

27 About the New Medium-Term Business Plan Covering the Period from FY2012 to FY2016 Ⅰ．The New Medium-Term Business Plan

Ⅱ．JAPEX’s Perception of the Business Environment and Preconditions (assumptions regarding crude oil prices and exchange rates)

Ⅲ Corporate Vision and Basic Strategies for JAPEX Expansion

Ⅳ．Growth Initiatives 1. E&P business 2. Domestic natural gas business 3. Environment and innovative technology business Ⅴ. Consolidated Profit and Loss / Investment Portfolio

Ⅵ．Summary

2828 I-1. The Level of Achievement against Previously Established Targets Leading into the New Medium- Business Plan „ In working toward the overarching goal of business growth and expansion, JAPEX is projected to achieve its targets for proved reserves, natural gas sales volume as well as sales of natural gas and domestically produced crude oil established under the mid-term business plan announced in May 2008 by the fiscal year ending March 31, 2012. million 400 BOE 350 300 Target 1 272 254 257 Proved reserves 250 225 59 49 49 200 73 350 million BOE by FY2013 150 100 213 205 208 „ Final investment decision (FID) regarding the Canada Oil 152 50 Sands Hangingstone Expansion Project (FY2012) reserves Proved Note: Plan to bring the proved reserves (60 million BOE) of 0 the Garraf oilfield in Iraq to account following confirmation in billion m3 FY2008 FY2009 FY2010 FY2011 FY2012 fiscal 2014 2.1 Domestic Overseas *FDP：Final Development Plan 2.0 Target 2 1.9 Natural gas sales volume 1.8 2.0 billion m3 by FY2014 volume 1.7 (On a consolidated basis including satellite systems supply) 1.74 1.82 1.6 1.71 1.72 Naturalgas sales

„ Growing demand for natural gas 1.5 FY2008 FY2009 FY2010 FY2011 FY2012 (Pipeline and satellite system supply) billion m3120 110 Target 3 100 Sales of natural gas and domestically produced crude oil 90 80 98.5 101 ¥110 billion by FY2013 91.4 91.0 (On a consolidated basis including satellite systems supply) 70 60

„ Review of the forecast crude oil price （$80/bbl→$90/bbl） domestically and produced crude oil crude produced Sales of natural gas natural Salesof 50 „ Introduction of a feedstock cost adjustment systems for FY2008 FY2009 FY2010 FY2011 FY2012 mixed supplies 2929 I -2. Positioning of the New Medium-Term Business Plan

„ Drawing on the level of achievement against numerical targets established under the previous mid-term business plan, took steps to draw up a new medium-term business plan (FY2012 to FY2016) with the aim of securing Achievement ofnumericaltargets

further growth Achievement ofnumericaltargets

NewNew Medium-Term Medium-Term Further BusinessBusiness Plan Plan business growth （（FY2012FY2012 – – FY2016 FY2016 ） ） May May May 2008 2009 2010

-- ReflectsReflects businessbusiness circumstancecircumstance changeschanges after after MayMay 20092009 ⇒⇒ Follow-upFollow-up

-- RapidRapid deteriorationdeterioration inin internationalinternational economiceconomic conditionsconditions -Sharp-Sharp declinedecline inin crudecrude oiloil pricesprices

⇒⇒ PartialPartial revisionrevision (estimate) (estimate)

PreviousPrevious Mid-TermMid-Term BusinessBusiness PlanPlan （（FY2009FY2009 -- FY2013 FY2013））

3030 II-1. JAPEX’s Perception of the Business Environment and Preconditions Perceptions of the Business Environment

An increasingly competitive Intense competition in the domestic resource development environment natural gas business

„Growing nationalism in oil and gas producing „Aggressive natural gas infrastructure countries development by competitive companies

„Sharp increase in the energy prices fueled by „Escalating difficulty in procuring supplies of LNG such factors as pro-democracy movements in the in the aftermath of the Great East Japan Middle east and North Africa Earthquake

„A return to fossil fuels in the aftermath of the „Deregulation in line with structural reforms in the Great East Japan Earthquake gas business

Trends in energy prices Growing social awareness toward environmental issues „Marked increase in crude oil prices from 2004; „Commonly held GHG（Greenhouse Gas) reduction Record high in July 2008 goal leading up to 2050 „A sharp drop after July 2008; indications of a „GHG reduction efforts triggering new steady recovery opportunities for business growth „Increased volatility in both crude oil and LNG „The direction of long-term GHG reduction prices initiatives to remain unchanged following the Great East Japan Earthquake

Note: Taking into consideration current uncertainty surrounding the effects of the Great East Japan Earthquake on the Company’s business, JAPEX has not factored in any explicit impact for the duration of the plan from fiscal 2013 and beyond. 3131 II-2 JAPEX’s Perception of the Business Environment and Preconditions assumptions regarding crude oil price and exchange rate ■Taking into consideration the current high level of crude oil price and the assumption that price would continue to hover at current levels for the foreseeable future, JAPEX has identified the following crude oil price and exchange rate projections: ■ Crude oil price ： Expected to plateau and remain steady at $90/bbl after FY2012 ■ Exchange rate ： Expected to maintain steady at ¥90/$ after FY2013 Preconditions of the New Medium-Term Business Plan FY11 (a) FY12 (e) FY13 (e) FY14 (e) FY15 (e) Crude oil price ($/bbl） 82.6990909090 Exchange rate (¥/$) 86.24 85 90 90 90

140 Crude oil price jumped mainly Crude oil price rose reflecting the because of the influx of speculative expectation of the global economic 120 money in the market recovery (including the U.S.) 100 Expected to plateau and remain steady at 80 $90/bbl after FY2012

60 Impact on earnings attributable Pro-democracy movements to fluctuations in crude oil 40 in North Africa and the price and exchange rate (FY2012)

[Crude oil ] price (JCC) $-denominated $/bbl Middle East 20 „Increase of 1$/bbl in the price of crude oil „ Increase in net income of ¥200 million

„Impact of a ¥5/$ depreciation in 2004.01 2004.05 2004.09 2005.01 2005.05 2005.09 2006.01 2006.05 2006.09 2007.01 2007.05 2007.09 2008.01 2008.05 2008.09 2009.01 2009.05 2009.09 2010.01 2010.05 2010.09 2011.01 the value of the yen „ Increase in net income ¥800 million 3232 Ⅲ-1. Corporate Vision and Basic Strategies for JAPEX Expansion Three basic policies for JAPEX expansion „ JAPEX’s overarching corporate vision and three basic policies remain unchanged Corporate Vision Three basic policies aimed at securing business expansion Taking on the challenge of creating new value from energy and increasing corporate value

„ Contribute to the supply of energy through global E&PE&P exploration and production (E&P) activities. businessbusiness Sustaining and increasing reserves through exploration „ Contribute to coexistence between the planet and and development humankind by promoting the use of environment- friendly natural gas and taking on new business challenges. Corporate Vision „ Pursue sustainable growth and maximize shareholder value by placing top priority on maintaining mutual trust between society, customers, Domestic Domestic EnvironmentEnvironment and and shareholders and employees. natural gas natural gas innovativeinnovative technology technology business business businessbusiness

Strengthening our natural gas Pursuing technological R&D activities and initiatives to integrated operation system address global environmental challenges

Note1）：Business targets identified at the time the previous mid-term business plan (FY2009 to FY2013) was prepared Note2） E&P：Exploration and Production 3333 Ⅲ-2. Corporate Vision and Basic Strategies for JAPEX Expansion Growth Story

„ While positioning E&P at the Company’s main activities, endeavor to increase business opportunities by shifting to E&P activities overseas and pursuing new investment in domestic natural gas as well as environment and innovative technology as the means to help realize business expansion Growth scenario under the new medium-term business plan

← Increase Increase PromotePromote long-term long-term earnings opportunities earnings opportunities developmentdevelopment through through Return E&PE&P through Further businessgrowth business through overseasoverseas exploration exploration business newnew overseas overseas investment Maximize the value of investment Maximize the value of investmentinvestment existingexisting overseas overseas assets assets Maximize the value of Maximizeexisting domestic the value of existing domestic Domestic assetsassets Domestic naturalnatural gas gas business Cultivatebusiness natural gas Cultivatedemand natural gas Engagedemand in wide- Engage in wide- ranging activities ranging activities including the upgrade including the upgrade of infrastructure of infrastructure „ The Garraf oilfield in Iraq and Canada Oil Sands Hangingstone EnvironmentEnvironment Expansion Project supporting to andand increase production volume, innovativeinnovative secure earnings and augment technology technologybusiness proved reserves Acceleratebusiness large-scale Accelerate(CCS, MH) large-scale project → Time (CCS,activities MH) project Cultivateactivities new fields Cultivate new fields including renewable including renewable energy energy 3434 ⅣⅣ--11．．GrowthGrowth InitiativeInitiativess ①① E&PE&P AActivitiesctivities（（1/21/2））

„ Focusing particularly on a shift overseas, organize E&P activities into three phases over the next decade and establish clearly defined objectives for each phase

Overseas E&P activities under the new medium-term business plan E&P Activity Objectives 1st Phase ShiftShift investment investment overseas overseas

„ Lift the ratio of overseas E&P investment

2nd Phase IncreaseIncrease production production volume volume North America focusing on Canada „ Ensure steady progress in the Garraf (Canada Oil Sands, etc.) oilfield in Iraq, Canada Oil Sands Hangingstone Expansion Project and other new ventures The Middle East focusing on Iraq rd (Garraf, etc.) Southeast Asia focusing 3 Phase on Indonesia Augment proved reserves (Kangean, etc.) Augment proved reserves

„ Put in place a business promotion structure and systems for each area in order to proactively pursue „ Reinvest the cash flows generated by the aforementioned production volumes overseas project development 3535 ⅣⅣ--22．．GrowthGrowth InitiativeInitiative ①① E&PE&P AActivitiesctivities（（2/22/2））

Objective 2: Increase production volumes Ensure the shift to production and cash in from Objective 1: development projects slated for between fiscal 2012 and fiscal 2016 Shift investment overseas (FY2013 to FY2016) Lift overall overseas investment as a ratio of the E&P BOE/D 70,000 investment portfolio from the approximate 30% recorded over the past five year to around 60% 40,000

Overseas Overseas 900 1,700 Volume Production FY2011 FY2016 Domestic 1,100 FY07～FY11 FY12～FY16 ObjectiveObjective 3: Augment 3: Increase overseas proved proved reserves reserves 270 280 Further increases in proved reserves projected billion yen billion yen through the reinvestment of cash flows generated Domestic from overseas projects 1,800 Additional by new investment million 450 BOE Previous Target 350＋α Note: Including investments through loans to equity-method 257 affiliates 170 Reduction by production

Proved Reserves Proved FY2007 FY2011 FY2012 FY2021 Note) Above “ Production volume” and “Proved Reserves” are equivalent to JAPEX group’s interest. 3636 【Reference】 Development of the E&P business structure （Effective from June 24） or Restructuring of the E&P business organization „ Plans are in place to implemented the following organizational structure as a part of efforts to expand earnings through aggressive investment in overseas E&P businesses and the establishment of a robust earnings platform Basic concept: Development of E&P business structure Current Organization Future Organization Function （Excerpt recasting only) Americas & Russia Project International Oil & Gas Division „ To ensure a smooth decision-making process with respect to Division business planning, promotion and management and to clarify all appropriate responsibility structures and systems Asia & Oceania Project „ To manage in an effective and appropriate manner the three Iraq Project Division major Canada Oil Sands, Kangean Block (Indonesia) and Garraf Division oilfield (Iraq) development projects under a comprehensive responsibility structure and system that includes the dispatch of additional designated engineers, and the discovery of new Kangean Project Dept. Middle East, Africa & projects Europe Project Division

„ To assume responsibility for the current division office function, Domestic Project Division business as well as corporate planning and work related to engineering operations

Exploration Division „ To upgrade and fine-tune technical evaluation standards „ To assume responsibility for the systematic education and Technical Division training of engineers and related technical personnel as well as Development Division their flexible and effective allocation to business divisions

„ To strengthen the planning and investment assessment functions of management strategies and policies Corporate Planning Corporate Strategy Dept. „ To consolidate the basic policy proposing functions currently dispersed across an existing structure comprising the overseas, Dept. exploration and development divisions (New)

Project Solution Office „ To assume responsibility for the Project Solution and Buildup functions relating to individual business division investment project proposals 3737 Ⅳ-3．Growth Initiatives ② Domestic Natural Gas Business

„ Contribute to the growing use of natural gas (amid, however, an uncertain business environment)

Domestic natural gas business under the new medium-term business plan Domestic natural gas activities FY2012

ExpectationsExpectations of of achieving achieving a a natural natural gas gas salessales volume volume of of 2.0 2.0 billion billion m3 m3

Changing factors in future

UncertaintiesUncertainties surroundi surroundingng the the business business environmentenvironment due due large largelyly to to the the Great Great EastEast Japan Japan Eart Earthquakehquake and and other other factorsfactors DecreaseDecrease in in Hokkaido Hokkaido natural natural has has sales sales ‘billion m3 Steady growth trend from fiscal 2010 and volume from fiscal 2013 and beyond 2.10 beyond (annual growth rate of around 7%) volume from fiscal 2013 and beyond 2.00 1.90 Future initiatives 1.80 InIn order order to to contribute contribute to to the the growing growing use use 1.70 1.86 ofof natural natural gas, gas, cu cultivateltivate demand demand and and Volume 1.74 1.60 1.71 1.72 focusfocus on on infrastr infrastructureucture and and other other

Natural Gas Sales Gas Natural 1.50 development while endeavoring to FY2008 FY2009 FY2010 FY2011 FY2012 development while endeavoring to optimallyoptimally adjust adjust sales sales prices prices 3838 Ⅳ-4．Growth Initiatives ③ Environment and Innovative Technology Projects „ Engage in full-fledged commercialization activities as one of the three basic policies that underpin JAPEX’s earnings platform Environment and innovative technology activities under the new medium-term business plan

Methane hydrate Phase 2 Fiscal 2010 to Fiscal 2016 Environment and innovative technology activity objectives

‡ Plans in place to conduct two offshore production Existing activities tests in the Tobu Nankai trough „ Striving to reduce the environmental impact of our operations ‡ Commissioned to serve as project operator, „ Striving to reduce the environmental impact of our operations and becoming proactively involved in tree-planting programs. JAPEX will drive business promotion forward and becoming proactively involved in tree-planting programs. „ Promoting technological R&D of CCS, methane hydrate, GTL ‡ Drawing on the results of phase 2, undertake a „ Promoting technological R&D of CCS, methane hydrate, GTL and DME, etc. comprehensive evaluation from fiscal 2017 and DME, etc. 2010 2011 2012 2013 2014 2015 ・・・・・ 2018 2019 2020 Apr.2010 phase 2. Offshore production test „ Established the Environment and Innovative Technology „ Established the Environment and Innovative Technology phase 3. Projects Division Projects Division „ Strengthen project promotions and the structure for uncovering „ Strengthen project promotions and the structure for uncovering opportunities CCS Demonstration Project opportunities

‡ Japan CCS Co., Ltd. established in 2008; Joint private- and public-sector business promotion Future strategies ‡ Preliminary surveys undertaken in three domestic location including exploration wells off „ Accelerate large-scale project-oriented activities the Tomakomai coast „ Accelerate large-scale project-oriented activities ‡Considerable emphasis placed on the early 9 Methane hydrate phase 2 9 Methane hydrate phase 2 implementation of CCS demonstration tests with an 9 Pursue domestic CCS demonstration testing eye to commercialization from 2020 and beyond 9 Pursue domestic CCS demonstration testing 9 Participate in overseas CCS projects 2010 2011 2012 2013 2014 2015 ・・・・・ 2018 2019 2020 9 Participate in overseas CCS projects

Survey „ Cultivate new fields including renewable energy „ Cultivate new fields including renewable energy CCS demonstration test 9 Target commercialization by fiscal 2016 9 Target commercialization by fiscal 2016 Toward commercialization Note: The aforementioned schedule is based on projected scenarios by the Company based on current conditions and events. There are no definitive plans currently in place. 3939 V-1. Consolidated Profit and Loss / Investment Portfolio Consolidated Profit and Loss

„ Projected substantial recovery in the Company’s consolidated profit and loss due to a variety of factors including the decrease in depreciation and amortization, adjustment to natural gas sales prices and contributions from the Canada Oil Sands Hangingstone Expansion Project

Forecast consolidated profit and loss (net income)

„ Expectations of Factors contributing to contributions to profit from increased future earnings ongoing progress in existing projects (Kangean, Garraf oilfield in Iraq, etc.) and the Canada Oil Sands Hangingstone Expansion Project

11.5 billion yen „ Optimal adjustment to the price of natural gas in line 10.0 billion yen with increases in crude oil prices

„ Decrease in depreciation and amortization

FY2011 FY2012 FY2016 （a） （e） 4040 [Reference] Forecast Depreciation and Amortization

„ Depreciation and amortization on a consolidated basis expected to peak (approximately ¥25.0 billion) leading up to fiscal 2011 and to decline thereafter

„ Due largely to the completion of a round of investment aimed at expanding domestic production capacity

Forecast Depreciation and Amortization 30

25 ：Cost Recovery bilion yen Actual （Garraf(Iraq), Block A(Indonesia) ） E 20 stimate Depreciation and amortization 15

10

5

depreciation and amortization 0

Note: PotentialFY2010 for the FY2011aforementioned FY2012 figure FY2013 to rise depending FY2014 on FY2015future exploration FY2016 investment performance

Besides depreciation and amortization, cost recovery will occur for the Garraf (Iraq) and Block A (Indonesia) when production commencement. They will offset by receiving production income.

4141 V-2. Consolidated Profit and Loss / Investment Portfolio Investment Portfolio „ Projected investment scale of approximately ¥280.0 billion taking into consideration free cash flows between fiscal 2012 and fiscal 2016 together with external funds procured „ The investment portfolio is presented as follows

Investment portfolio (Image)

Overseas Exploration around 20 billion yen

Domestic development investment Domestic natural gas activities around 80 billion yen FY2012– FY2016

280 Overseas development investment billion yen Domestic Exploration Environment and innovative around 30 billion yen technology activities around 150 billion yen

4242 ⅥⅥ ．． SummarySummary

„ Expectations that the objectives identified in the mid-term business plan announced in May 2008 will be achieved by fiscal 2012 „ Steps taken to draw up a medium-term business plan covering the period from fiscal 2012 to fiscal 2016 „ Business expansion across the three core business pillars of E&P, domestic natural gas and environment and innovative technology „ Aiming for sustainable growth particularly in E&P activities, JAPEX will pursue the following initiatives aimed at shifting business overseas ‹ Lift the ratio of overseas E&P investment (approximately 60% over the next five years) ‹ Increase production volume mainly overseas by ensuring steady progress in such activities as the Garraf oilfield in Iraq and the Canada Oil Sands Expansion Project as well as the shift of production overseas (70,000 BOED by fiscal 2016) ‹ Further augment proved reserves by reinvesting generated cash flows in new projects(450 million BOE by fiscal 2021) „ Steadily implement domestic natural gas activities and pursue environment and innovative technology commercialization in concert with E&P activities

4343