Inpex : Consolidated Financial Results for the year ended December 31, 2023

Consolidated Financial Results for the year ended December 31, 2023 [IFRS]

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

Company name Code number Representative Contact person

• : INPEX CORPORATION

• : 1605

• : Takayuki Ueda, PresidentStock Exchange on which the Company is listed URLhttps://www.inpex.co.jp

• : Yoshihiro Wakita, General Manager, Corporate Communications Unit TEL[phone]

March 27, 2024

: Tokyo Stock Exchange

(Amounts less than one million yen are rounded off)

1. Consolidated Financial Results for the year ended December 31, 2023 (January 1, 2023 through December 31, 2023) (1) Consolidated operating results

(Figures in % represent the changes from the previous fiscal year)

Revenue

Operating profit

Profit before tax

Profit

Profit attributable to owners of parent

Total comprehensive income

For the year ended December 31, 2023 December 31, 2022

Millions of yen 2,164,516 2,316,086

% (6.5) -

Millions of yen 1,114,189 1,503,667

% (25.9) -

Millions of yen 1,253,384 1,445,382

% (13.3) -

Millions of yen 332,576 485,955

% (31.6) -

Millions of yen 321,708 498,452

% (35.5) -

Millions of yen 616,945 994,545

% (38.0) -

Basic earnings per share	Diluted earnings per share	Return on equity attributable to owners of parent	Ratio of profit before tax to total assets	Ratio of operating profit to revenue
For the year ended December 31, 2023 December 31, 2022	Yen 248.55 364.73	Yen 248.38 364.57	% 8.0 14.6	% 19.0 24.6	% 51.5 64.9

(Reference):

Share of profit (loss) of investments accounted for using equity method:

(2) Consolidated financial position

for the year ended December 31, 2023, ¥18,389 million for the year ended December 31, 2022, ¥166,253 million

Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets	Equity attributable to owners of parent per share
As of December 31, 2023 As of December 31, 2022	Millions of yen 6,739,476 6,448,414	Millions of yen 4,499,033 4,068,560	Millions of yen 4,209,101 3,807,381	% 62.5 59.0	Yen 3,345.22 2,915.31

(3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of the year
For the year ended December 31, 2023 December 31, 2022	Millions of yen 788,130 782,274	Millions of yen (320,116) (535,123)	Millions of yen (487,272) (246,597)	Millions of yen 201,149 208,238

Cash and cash equivalents

2. Dividends

Cash dividends per share	Total cash dividends (Annual)	Payout ratio (Consolidated)	Ratio of dividends to equity attributable to owners of parent (Consolidated)
At 1st quarter end	At 2nd quarter end	At 3rd quarter end	At fiscal year end	Total
For the year ended December 31, 2022 December 31, 2023	Yen - -	Yen 30.00 37.00	Yen - -	Yen 32.00 37.00	Yen 62.00 74.00	Millions of yen 83,420 94,943	% 17.0 29.8	% 2.4 2.4
For the year ending December 31, 2024 (Forecasts)	-	38.00	-	38.00	76.00	29.0

owners of parent

(Note): "Dividends" as stated above refer to common stock. For information regarding Class A stock (not listed), please refer to Exhibit "Dividends of Class A stock."

3. Forecasts for Consolidated Financial Results for the year ending December 31, 2024 (January 1, 2024 through December 31, 2024)

(Figures in % represent the changes from the corresponding period of the previous fiscal year)

Revenue	Operating profit	Profit before tax	Profit attributable to owners of parent	Basic earnings per share
For the six months ending June 30, 2024 For the year ending December 31, 2024	Millions of yen 1,043,000 1,931,000	% (3.3) (10.8)	Millions of yen 544,000 1,010,000	% (10.4) (9.4)	Millions of yen 559,000 1,043,000	% (21.2) (16.8)	Millions of yen 155,000 330,000	% (37.6) 2.6	Yen 123.19 262.27

Basic earnings

*Notes

• (1) Significant changes in scope of consolidation

  • : None

• (Changes in the specified subsidiaries during the period due to change in scope of consolidation)

• (2) Changes in accounting policies and changes in accounting estimates

  • 1. Changes in accounting policies required by IFRS

    • : None

  • 2. Other changes in accounting policies

    • : None

  • 3. Changes in accounting estimates

• : None

(3) Number of shares issued (Common stock)

1. Number of shares issued at the end of the period	1,386,667,167 shares as of December 31, 2023
(including treasury stock):	1,386,667,167 shares as of December 31, 2022
2. Number of treasury stock at the end of the period:	128,422,706 shares as of December 31, 2023
80,672,863 shares as of December 31, 2022

3. Average number of shares:

1,294,325,142 shares for the year ended December 31, 2023 1,366,647,207 shares for the year ended December 31, 2022

(Note): The shares held by "the Board Incentive Plan Trust" are included in number of treasury stock at the end of the period.

(As of December 31, 2023: 891,560 shares As of December 31, 2022: 910,363 shares)

*This financial report is not subject to audit by certified public accountants or audit firms.

*Explanation regarding the appropriate use of estimated consolidated financial results

• 1. The Group has voluntarily adopted the International Financial Reporting Standards (IFRS) instead of accounting principles generally accepted in Japan (Japanese GAAP), starting with the consolidated financial statements in the Annual Securities Report for the year ended December 31, 2023. This financial results and attachments are being voluntarily disclosed as important financial information based on IFRS from the items provided in the Annual Securities Report. Furthermore, the Group released the financial results based on the Japanese GAAP (Consolidated Financial Results for the year ended December 31, 2023) on February 13, 2024.

• 2. The aforementioned forecasts "3. Forecasts for Consolidated Financial Results for the year ending December 31, 2024" are based on the currently available information and contain many uncertainties. The final results might be significantly different from the aforementioned forecasts due to changes in business conditions including oil and natural gas price levels, production and sales plans, project development schedules, government regulations and financial and tax schemes.

Exhibit:

Dividends of Class A stock

Cash dividends per share
At 1st quarter end	At 2nd quarter end	At 3rd quarter end	At fiscal year end	Total
For the year ended December 31, 2022 December 31, 2023	Yen - -	Yen 12,000.00 14,800.00	Yen - -	Yen 12,800.00 14,800.00	Yen 24,800.00 29,600.00
For the year ending December 31, 2024 (Forecasts)	-	15,200.00	-	15,200.00	30,400.00

(Note): The Company conducted a stock split at a ratio of 1:400 of common stock effective October 1, 2013. However, for Class A stock (not listed), no stock

split was implemented. The article specifying that dividends of Class A stock are equivalent to dividends of common stock prior to the stock split is included in the Articles of Incorporation.

Index of the Attachments

1. Consolidated Financial Statements and Principal Notes ........................................................................................................................ 2

(1) Consolidated Statement of Financial Position ................................................................................................................................. 2

(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income ................................................ 4

Consolidated Statement of Profit or Loss .......................................................................................................................................... 4

Consolidated Statement of Comprehensive Income .......................................................................................................................... 5

(3) Consolidated Statement of Changes in Equity ................................................................................................................................. 6

(4) Consolidated Statement of Cash Flows ............................................................................................................................................ 8

(5) Notes to Consolidated Financial Statements .................................................................................................................................. 10

(Conditions or events that indicate there could be substantial doubt about the Company's ability to continue as a going concern)

......................................................................................................................................................................................................... 10

(Segment information) ..................................................................................................................................................................... 10

(Per share information) .................................................................................................................................................................... 12

(Significant subsequent events) ....................................................................................................................................................... 12

(First-time adoption) ........................................................................................................................................................................ 13

1. Consolidated Financial Statements and Principal Notes (1) Consolidated Statement of Financial Position

As of January 1, 2022

Accounts

(date of transition)

As of December 31, 2022 As of December 31, 2023

Assets

Current assets

Cash and cash equivalents Trade and other receivables Inventories

Income taxes receivable Loans receivable

Other financial assets Other current assets

Subtotal

Assets held for sale Total current assets

Non-current assets

Oil and gas assets

Other property, plant and equipment Goodwill

Intangible assets

Investments accounted for using equity method

Loans receivable Other financial assets

Asset for retirement benefits Deferred tax assets

Other non-current assets Total non-current assets Total assets

192,254

208,238 201,149

198,454

287,452 232,017

47,393

71,907 69,856

2,619

5,948 10,640

38,366

32,179 42,350

13,872

85,039 227,068

32,616

41,417 37,992

525,576 -

732,183 821,075

26,422 17,341

525,576

758,605

838,417

3,292,382 27,757 - 6,048 325,139

3,540,507 3,601,558

27,390 25,481

19,706 20,471

6,775 9,033

636,582

751,903

1,011,804

1,279,140 1,306,529

50,587 -

60,149 95,890

1,734 896

27,276

77,541 72,977

18,483

40,280 16,316

5,285,056

4,759,479

5,689,809 6,448,414

5,901,058 6,739,476

(Millions of yen)As of January 1, 2022

Accounts

(date of transition)

As of December 31, 2022 As of December 31, 2023

Liabilities and equity

Liabilities

Current liabilities

Trade and other payables Bonds and borrowings Other financial liabilities Income taxes payable Asset retirement obligations Other current liabilities Subtotal

Liabilities directly related to assets held for sale

Total current liabilities

Non-current liabilities

Bonds and borrowings

Other financial liabilities

Liability for retirement benefits

Asset retirement obligations

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities

Total liabilities

Equity

Common stock Capital surplus Retained earnings Treasury stock

Other components of equity

Total equity attributable to owners of parent

Non-controlling interests Total equity

Total liabilities and equity

146,524

210,836 207,913

80,493

75,878 161,059

39,345

81,833 40,808

50,845

126,745 131,721

1,266

10,100 19,018

38,570

31,122 11,690

357,045

536,517

572,212

-

4,213

-

357,045

540,730

572,212

1,099,721

1,194,369 895,923

72,291

70,805 66,025

7,052

689 803

364,830

334,234 369,483

137,437

234,556 332,940

1,773

4,466 3,054

1,683,105

2,040,151

1,839,123 2,379,854

1,668,230 2,240,442

290,809

290,809 290,809

678,949

679,113 679,131

2,180,837

(75,425)

(41,490)

2,521,998 (121,358) 436,818

2,746,530 (221,330) 713,959

3,033,680

3,807,381

4,209,101

211,224 3,244,904 5,285,056

261,178 4,068,560 6,448,414

289,932 4,499,033 6,739,476

(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income

Consolidated Statement of Profit or Loss

For the year ended	For the year ended
December 31, 2022	December 31, 2023
Revenue	2,316,086	2,164,516
Cost of sales	(818,130)	(848,080)
Gross profit	1,497,956	1,316,435
Exploration expenses	(12,702)	(25,901)
Selling, general and administrative expenses	(91,975)	(95,747)
Other operating income	95,971	25,094
Other operating expenses	(151,836)	(124,081)
Share of profit (loss) of investments accounted for using
166,253	18,389
equity method
Operating profit	1,503,667	1,114,189
Finance income	73,820	217,310
Finance costs	(132,105)	(78,116)
Profit before tax	1,445,382	1,253,384
Income tax expense	(959,427)	(920,807)
Profit	485,955	332,576
Profit (loss) attributable to
Owners of parent	498,452	321,708
Non-controlling interests	(12,497)	10,867
Profit	485,955	332,576
Earnings per share
Basic earnings per share (Yen)	364.73	248.55
Diluted earnings per share (Yen)	364.57	248.38

AccountsConsolidated Statement of Comprehensive Income

(Millions of yen)Accounts

For the year ended December 31, 2022

For the year ended December 31, 2023

Profit

Other comprehensive income

Items that will not be reclassified to profit or loss

Financial assets measured at fair value through other comprehensive income

Remeasurement gains (losses) on defined benefit plans Share of other comprehensive income of investments accounted for using equity method

Total items that will not be reclassified to profit or loss

Items that may be reclassified subsequently to profit or loss

Cash flow hedges

Exchange differences on translation of foreign operation Financial assets measured at fair value through other comprehensive income

Share of other comprehensive income of investments accounted for using equity method

Total items that may be reclassified subsequently to profit or loss

Other comprehensive income, net of tax

Comprehensive income

Comprehensive income attributable to

Owners of parent

Non-controlling interests Comprehensive income

485,955 332,576

3,035 2,460

1,634

(1,406)

(74)

-

4,595

1,054

195 455,403

337 285,720

-

(209)

48,397

(2,533)

503,995

283,315

508,590 994,545

284,369 616,945

975,145 591,848

19,400 25,096

994,545

616,945

(3) Consolidated Statement of Changes in Equity

(Millions of yen)Equity attributable to owners of parentOther components of equity Exchange

Common stockCapital surplusRetained earningsTreasury stockdifferences on translation of foreign operation

Cash flow hedgesAs of January 1, 2022

Profit

Other comprehensive income

Total comprehensive income

Purchase of treasury stock

Disposal of treasury stock

Cancellation of treasury stock

Dividends

Increase (decrease) by business combination

Changes in ownership interest in subsidiaries

Share-based payment transactions

Transfer from other components of equity to retained earnings

Total transactions with owners

As of December 31, 2022

290,809

678,949

2,180,837

(75,425)

- - 423,504 423,504

(16,171)

- - - - - - - -

- - - -

498,452

- - -

-

-

48,592

498,452

48,592

- -

(121,191)

- - - - -

-

(10)

10 75,248

-

- - -

(75,248)

-

(80,426)

-

- -

- -

- - -

19 154

-

(1,616)

- -

- - -

- - -

- - -

- 290,809

163 679,113

2,521,998

(157,291)

(121,358)

(45,932)

- 423,504

- 32,421

Equity attributable to owners of parentOther components of equityFinancial assets measured at fair value through other comprehensive incomeRemeasurement gains (losses) on defined benefit plansNon-controlling interests

TotalTotalTotalAs of January 1, 2022

Profit

Other comprehensive income

Total comprehensive income

Purchase of treasury stock

Disposal of treasury stock

Cancellation of treasury stock

Dividends

Increase (decrease) by business combination

Changes in ownership interest in subsidiaries

Share-based payment transactions

Transfer from other components of equity to retained earnings

Total transactions with owners

As of December 31, 2022

(25,319)

- - 1,633 1,633

(41,490)

3,033,680

211,224

3,244,904

- 2,961 2,961

- 476,692 476,692

498,452

(12,497) 485,955

476,692

31,898 508,590

- - - - -

975,145

19,400

994,545

- - - - -

- - - - -

(121,191)

- - -

(121,191)

- -

- -

(80,426)

(11,140) (91,567)

-

20,061 20,061

-

-

-

19

21,633 21,653

- - - 154 - 154

3,250

(1,633)

1,616

-

-

-

3,250

(1,633)

1,616 436,818

(201,443)

30,553 261,178

(170,890)

(19,107)

-

3,807,381

4,068,560

(Millions of yen)Equity attributable to owners of parentOther components of equity Exchange

Common stockCapital surplusRetained earningsTreasury stockdifferences on translation of foreign operation

Cash flow hedgesAs of January 1, 2023

Profit

Other comprehensive income

Total comprehensive income

Purchase of treasury stock

Disposal of treasury stock

Dividends

Changes in ownership interest in subsidiaries

Share-based payment transactions

Transfer from other components of equity to retained earnings

Total transactions with owners

As of December 31, 2023

290,809

679,113

2,521,998

(121,358)

423,504

32,421

- - - - - - - - -

- - - -

321,708

- - -

-

-

- 321,708

271,491 (2,196)

271,491 (2,196)

(159)

205

(28)

-

-

(90,176)

(7,000)

- -

- -

(99,999)

28 - - - -

- - - - - -

- - - - - -

- 290,809

18 679,131

2,746,530

(97,176)

(221,330)

(99,971)

- 694,996

- 30,224

Equity attributable to owners of parentOther components of equityFinancial assets measured at fair value through other comprehensive incomeRemeasurement gains (losses) on defined benefit plansNon-controlling interests

TotalTotalTotalAs of January 1, 2023

Profit

Other comprehensive income

Total comprehensive income

Purchase of treasury stock

Disposal of treasury stock

Dividends

Changes in ownership interest in subsidiaries

Share-based payment transactions

Transfer from other components of equity to retained earnings

Total transactions with owners

As of December 31, 2023

(19,107)

- -

436,818

3,807,381

261,178 4,068,560

- 2,251 2,251

- 270,140 270,140

321,708

10,867 332,576

(1,406)

270,140

14,229 284,369

- - - - - 5,594

(1,406)

591,848

25,096

616,945

- - - - - 1,406

- - - - - 7,000

(99,999)

- -

(99,999)

-

-

(90,176)

(8,294) (98,471)

(159)

11,952 11,792

205 - 205

-

-

-

5,594

1,406

7,000 713,959

(190,129)

3,657 289,932

(186,472)

(11,261)

-

4,209,101

4,499,033