Integrated Report 2023 slide image

Integrated Report 2023

JAPEX II. Initiatives for Sustainable Growth and Medium- to Long-term Enhancement of Corporate Value Sustainable Growth and Medium- to Long-Term Enhancement of Corporate Value - Current Status Analysis Market's evaluation (PBR etc.) PBR is improving, but has not yet reached 1x Changes in PBR 1.6 ROE of 16.9% in FY03/2023 and 9.9% in FY03/2024 forecast are above the TSE prime (Times) average, but lower-than-average PER is also an issue as a reason for remaining at a low PBR ratio. In addition to standard industry issues such as the sustainability of oil- and natural gas- related businesses toward a decarbonized society and the high volatility of oil and natural gas prices, we recognize that the lack of understanding and confidence in our efforts to enhance corporate value is one of the factors behind the low PBR. Cost of equity is approximately 8%. Equity ratio is high after termination of two projects in Canada. 1.4 JAPEX TSE Prime Average (\billion) 1.4 Changes in Equity Ratio Owner's Equity Long-term debt Other capital Equity Ratio Withdrawal from Canada 2 business 1.3 1.2 1.2 1.0 1.0 PBR x1.0 12,000 10,000 8,000 78.7 (%) 63.7 62.5 59.5 58.6 60.8 63.6 64.2 64.0 74.9 80.0 0.8 Withdrawal from Canada 2 business 6,000 0.6 0.6 0.4 4,000 216 0.3 0.3 0.4 2,000 0.2 0 0.0 2020/3 2021/3 2022/3 2023/3 Changes in ROE 2014/3 2020/3 2021/3 2022/3 2023/3 * Figures assume 454.1 billion yen in average equity at the beginning and end of the period Copyright © 2023 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved. (%) 15.0 JAPEX TSE Prime Average 16.9 (Times) 30.0 Changes in PER JAPEX ―TSE Prime Average 26.2 19.7 * 9.9 20.0 13.3 15.0 10.0 6.6 7.2 9.5 9.2 10.0 Withdrawal from Canada 2 business 3.7 5.0 Withdrawal from 0.0 0.0 6.5 Canada 2 business (10.0) 3.6 (4.7) (5.0) (10.0) (20.0) (0.7) (30.0) (8.0) (15.0) (40.0) (43.1) 2024/3 (Forecast) (50.0) 2020/3 2021/3 2022/3 2023/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 60.0 207 1,300 1,419 1,360 1,277 1,188 502 40.0 3 5 20.0 2021/3 2022/3 2023/3 0.0 8
View entire presentation