Japan Petroleum Exploration (1662) Investor presentation summary

Basic policy and strategic direction

• Focus on building core assets through overseas E&P and CCUS projects, targeting assets that exceed cost of capital and support sustainable growth.

• Plan to quadruple production volume by FY2035 and monetize CCUS with at least 8 million tons of CO2 stored by FY2035.

• Growth investments of 1.5 trillion yen planned through FY2035, aiming for net profit of 100+ billion yen and ROE of 12% or more.

• Early achievement of previous targets, but challenges remain in building up business assets and ensuring sustainable growth.

• Recognizes the need for a pragmatic transition to carbon neutrality while maintaining energy security amid rising geopolitical risks.

Business strategy by region

• United States: Early monetization and capability building via operator assets, leveraging local partnerships and technical expertise.

• Norway: Build a balanced portfolio across production, development, and exploration, maximizing returns through local tax regimes and CCUS opportunities.

• South East Asia: Establish presence in E&P and CCUS, focusing on large-scale gas field development and stable long-term revenue.

• Japan: Promote CCUS projects, pursue offshore exploration, and use existing assets as a stable earnings base and talent hub.

Management foundation and execution capabilities

• Prioritize human capital, digital transformation (DX), and organizational structure to support strategic transformation.

• Set new CO2 reduction targets: 8 million tons stored by FY2035, 40% reduction in emission intensity by FY2030, and net-zero operations by 2050.

• Develop global talent pipeline and foster a culture of engagement and adaptability.

• Advance DX initiatives to optimize operations, accelerate decision-making, and free up human resources for strategic roles.