Management Plan

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JAPEX has formulated the JAPEX Management Plan 2022-2030 in March 2022. The basic policy of the plan is to improve profitability and to build a business foundation in the medium- to -long term.

This management plan has set the management goals by FY2030 and priority items aiming to achieve goals, aligning with "JAPEX 2050: Toward a Carbon-Neutral Society" formulated in May 2021 as our carbon neutrality direction.

"JAPEX Management Plan 2022-2030" Presentation (Formulated on March 28, 2022; 1.6MB)
New Management Plan Briefing (Held on March 29, 2022, Summary of Q&A Session (144KB))

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Carbon Neutral Direction & Objective

Basic Policy and Management Goals

Basic Policy

Improve profitability and build a business foundation for 2030 and beyond
- Achieve profit levels appropriate to capital costs and enhance shareholders return by proceeding with the priority items in three business fields

Management Goals

Business Profit target(*): 50 billion yen scale as of FY2030 (Interim target: 30 billion yen scale as of FY2026)
ROE target: 8% as of FY2030 (Interim target: 5% as of FY2026)
Profit composition target on E&P-to-non E&Ps: 5-to-5 as of FY2030 (Interim target: 6-to-4 as of FY2026)

Note)* The figure is calculated by subtracting approximately 6 billion yen in head office administrative expenses from the sum of operating income and equity in earnings of affiliates (including profits to be distributed under limited partnership and silent partnership agreements) in each business field. The crude oil price assumption is based on JCC 50USD/bbl

Fund Allocation

Out of a total of 500 billion yen in cash inflows allocate 450 billion yen in growth investments and 50 billion yen in shareholder returns
- Cash-in: 380 billion yen as operating cash flow, and 120 billion yen as cash on hand/bank loans
- Cash-out: 450 billion yen for growth investment (230 billion yen in E&P, 170 billion yen in I/U, and 50 billion yen in CN)

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Dividends

Profit target and priority items on each business field

* Bold items are new items on the latest management plan

E&P

Business profit target: 27 billion yen scale as of FY2030 (Interim target: 23 billion yen scale as of FY2026)
Priority items: Continue to invest in acquisition of new interests and promote low-carbon operations
- Japan: pursue potential including additional development and offshore exploration, reduce greenhouse gas (GHG) emissions from operations, collaboration with business examinations in other fields such as CCS/CCU
- Overseas: acquire new interests

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Oil & Gas E&P

Infrastructure/Utility (I/U)

Business profit target: 27 billion yen scale as of FY2030 (Interim target: 12 billion yen scale as of FY2026)
Priority items: Expand the profit scale of renewable energy and other businesses
- Japan: take actions to diversify our gas supply method, add more projects on renewable energy development
- Overseas: participate in projects of LNG supply infrastructure development, consider participating in projects on renewable energy development

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Carbon Neutral (CN)

Business profit target: 2 billion yen scale as of FY2030 (Interim target: 1 billion yen scale as of FY2026)
Priority items: Launch CCS/CCUS hub and cluster model business utilizing existing oil and gas fields, etc.
- Japan: launch CCS/CCUS model projects, consider infrastructure to supply CO₂ and others such as hydrogen and ammonia
- Overseas: participate in CCS/CCUS projects in systematically advanced areas such as North America and Europe, participate in feasibility studies on CCS/CCUS in emerging countries

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