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- Ordinary income decreased from 71.6 billion yen in the first half of fiscal year 2014 to a loss of 27.7 billion yen in the first half of fiscal year 2015 due to inventory valuation losses from falling crude oil prices. - Excluding inventory valuation effects, ordinary income increased from 71.6 billion yen to 91 billion yen due to improved performance in petrochemicals and metals businesses, despite declines in oil and gas exploration and petroleum products. - Revenue decreased 16% to 4,552.6 billion yen as crude oil prices and the yen's strength negatively impacted performance.

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0 Financial Results for FY 2015 1H - From April 1, 2015 to September 30, 2015 - November 4, 2015 Tokyo 5020Security Code Representative Director, President Yukio Uchida Director, Senior Vice President Kunimitsu Oba
Copyright © 2015 JX Holdings, Inc. Agenda Summary of the settlement of accounts Financial Results for FY2015 1H Forecast for FY2015  Business Environment  Outline of Financial Results for FY2015 1H  Initiatives under the Final year of 2nd Mid-Term Management Plan  Outline of Forecast for FY2015  Forecast for CAPEX, Cash Flow  Current Situation of Caserones Copper Mine  Shareholder Return Policy  Progress of 2nd Mid-Term Management Plan 2 4 5 6 7 8 9 10  Financial Results for FY 2015 1H  Forecast for FY2015  Major Topics  Key Factors  Sensitivity Analysis 13 20 26 27 28 Director, Senior Vice President Kunimitsu Oba 1 Representative Director, President Yukio Uchida
Copyright © 2015 JX Holdings, Inc. Business Environment 1 Resource Price and Exchange Rate (From Apr. 2015 to Sep. 2015) 2  Crude oil and copper price greatly declined after June because of concerns about economic slowdown of China, and other factors.  Exchange rate stays around 120 yen per dollars. 40 50 60 70 80 90 100 110 April October 2014 2015 Dubai Crude Oil $/bbl 200 250 300 350 April October 2014 2015 Copper (LME) ¢/lb 95 100 105 110 115 120 125 April October 2014 2015 Exchange Rate Yen/$ Summary of the settlement
0 2 4 6 8 10 12 April 2013 October Apr 2014 October Apr 2015 October yen/L Copyright © 2015 JX Holdings, Inc. Business Environment 2 Margin of Petroleum Products and Paraxylene 3 Margins of Gasoline, Kerosene, Diesel Fuel and Fuel Oil A  Petroleum Products margin declined rapidly in July and August due to time lag generated by crude oil rapid decline.  Margin level of Paraxylene is about the same level as 1H FY2014. Margin = Spot Price – All Japan Crude CIF (including petroleum tax and interest) * In case of ACP undecided, average price of spot market is adopted. Margin of Paraxylene 0 200 400 600 800 1,000 1,200 1,400 1,600 Apr. 2013 October Apr. 2014 October Apr. 2015 Paraxylene(ACP) Paraxylene Margin(vs.Crude Oil) Paraxylene Margin(vs.Naphtha) $/ton Summary of the settlement
Copyright © 2015 JX Holdings, Inc. 4 Ordinary income decreased from the same quarter of the previous year due to inventory valuation loss with crude oil slump. Ordinary income excluding inventory valuation increased from the same quarter of the previous year but decreased from last forecast announced in July mainly due to petroleum products margin decline. Ordinary Income Excl. Inventory Valuation Ordinary Income 71.6 91.0 120.0 -30.0 -10.0 10.0 30.0 50.0 70.0 90.0 110.0 130.0 150.0 FY2014 1H FY2015 1H FY2015 1H Last Forecast (Announced in July) Others Metals E&P Energy （JPY Billion） Summary of the settlement Outline of Financial Results for FY2015 1H (JPY billion) FY2014 1H FY2015 1H FY2015 1H Last Forecast (Announced in July) Ordinary Income 42.0 (27.7) 140.0 Inventory Valuation (29.6) (118.7) 20.0 Ordinary Income Excl.Inventory Valuation 71.6 91.0 120.0
 Additional cost reduction  Promoting cash flow generating action (Compressing investment, Selling assets)  Safe and stable operation(Trouble reduction)  Building competitive production and marketing structure  Securing a margin by adequacy of the supply-demand environment  Improving profitability by cost reduction  Promoting replacement of asset portfolio  Realizing early and stable full operation of Caserones Copper Mine and reducing operating cost  Strengthening profitability of midstream/downstream businesses  Strengthening profitability under resource price  Improving balance sheet (Strengthening financial position)  Strengthening profitability in Petroleum Refining and Marketing business  Implementing business strategy under crude price  Strengthening profitability under copper price 5Copyright  2015 JX Holdings, Inc. Recognition of Issue Way to Resolution Energy E&P of Oil and Natural Gas Metals Summary of the settlement Initiatives under the Final year of 2nd Mid-Term Management Plan  In fiscal 2015, which will be the final year of the 2nd Mid-Term Management Plan, piling up increasing profit by taking all measures and improving financial position by compressing investment and selling assets.
Revised Forecast Last Forecast (Announced in May) Crude Price ($/Bbl)* 53 60 Copper Price (¢/lb) 243 270 Exchange Rate (yen/$) 121 115 *Average from March to February 255.2 230.0 290.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 FY2014 FY2015 Revised Forecast FY2015 Last Forecast (Announced in May) Others Metals E&P Energy （JPY Billion） Copyright © 2015 JX Holdings, Inc. 6 Ordinary income excluding inventory valuation decreased from last forecast announced in May due to resources price’s down, petroleum products margin decline, and other factors. Key Factors Ordinary Income Ordinary Income Excl. Inventory Valuation Outline of Forecast for FY2015 Summary of the settlement (JPY billion) FY2014 FY2015 Revised Forecast FY2015 Last Forecast (Announced in May) Ordinary Income (150.1) 150.0 310.0 Inventory Valuation (405.3) (80.0) 20.0 Ordinary Income Excl.Inventory Valuation 255.2 230.0 290.0
(JPY Billion) Energy 300 150 450 540 E&P 310 120 430 390 Metals 270 60 330 300 Others 40 30 70 70 Summary 920 360 1,280 1,300 FY2013-2014 (Actual) FY2015 (Forecast) FY2013-2015 (Forecast) 2'nd Mid-Term Plan (JPY billion) (Revised Forecast) (Original Plan) Ordinary income 300.0 1,100.0 Depreciation and amortization 620.0 650.0 Decrease in working capital 510.0 (330.0) Cash flows from operating activities 1,430.0 1,420.0 Cash flows from investing activities (1,180.0) (1,240.0) Free cash flows 250.0 180.0 Copyright © 2015 JX Holdings, Inc. 7 Cash Flow（Cumulative total for FY2013 to 2015） Change of Net D/E Ratio CAPEX Forecast for CAPEX, Cash Flow Summary of the settlement 7,274.9 7,781.8 7,423.4 1,942.7 2,135.1 1,936.8 2,299.2 2,520.0 2,291.0 1.2 1.2 1.2 1.2 0.0 0.5 1.0 0 2,000 4,000 6,000 8,000 10,000 2013.3 2014.3 2015.3 2016.3 Total Asset (Left axis) Shareholder's equity (Left axis) Net Interest Bearing Debt (Left axis) Net Debt Equity Ratio (Right axis) Target 0.9 times or less Net D/E ratio (times) (JPY billion)
Copyright © 2015 JX Holdings, Inc. 8 Current Situation of Caserones Copper Mine Problems To Be Solved for Stable Continuing Full Operation  To Build an automated operation program  To Complete the preparation of the waste tailing deposit site Built the Framework Enabling Full Operation Actual Input of Ore into the Concentrate Treatment Process (per month) As of February, 2015 Current Situation  Correcting Some Defects Arising on Full Operation As of September, 2015
Indication of Shareholder Return for 2nd Medium-Term Management Plan Period Copyright © 2015 JX Holdings, Inc. Based on the basic policy, during the 2nd medium-term management plan period (FY2013-2015), we will strive to maintain dividends of 16 yen per share per annum. When we secure stable profitability in existing business and foresee realization of return from strategic investments, we will expand shareholder return centering on increase of dividend. Reference) Dividend from FY2010-2015 Shareholder Return Policy 9 Basic Shareholder Return Policy Redistribute profits by reflecting consolidated business results while striving to maintain stable dividends 2010 2011 2012 2013 2014 2015 (Forecast) Dividend (yen/share) 15.5 16.0 16.0 16.0 16.0 16.0 EPS (yen/share) 125 69 64 43 -111 18 Summary of the settlement
Strategies of 2'nd Medium-Term Management Plan Initiatives up to October 2015 Proceeding with renewal of Dr. Drive car care and maintenance service Ceased crude oil refinement at Muroran Refinery, targeting its conversion to petrochemical plant Decided to install petroleum coke power generation equipment at Mizushima Refinery Commenced installation of a solvent de-asphalting facility and a power generation facility at Kashima Refinery Proceeding with mega solar power generation business Decided to compete in retail electricity sales for homes Opened hydrogen supply station Commenced commercial operation of LNG terminal in Hachinohe and Kushiro Submitted a preliminary environmental impact statement and started full-scale examination of the enlargement at Kawasaki Natural Gas Power Generation Commenced importing and marketing businesses of fuel oil in Indonesia Established lubricants joint venture company in India Commenced commercial production of paraxylene at facilities of Ulsan Aromatics, of South Korea Started consideration to join revamp and construction of refineries in Indonesia and Vietnam Strengthening profitability in petroleum refining and a marketing, the core business Establishing presence in overseas markets Enhancing business as an Energy Conversion Company 10Copyright © 2015 JX Holdings, Inc. Action in Energy Business Summary of the settlement
Strategies of 2'nd Medium-Term Management Plan Initiatives up to October 2015 (Australia) Commenced production at Finucane South oil field Discovered gas in block WA-49-R Discovered crude oil in WA-435-P block (Malaysia) Discovered crude oil in Deepwater Block R (Vietnam) Confirmed gas and condensate in blocks 05-1b/c (Papua New Guinea) Started operation of LNG project (United States) Started enhanced oil recovery project using processed flue gas from coal power generation plant (U.K. North Sea) Commenced production at Kinnoull oil field Discovered crude oil in 22/16, 17b block Expanding reserves and production volume, mainly through exploration Establishing superiority by focusing on Core Countries and Core Technologies 11Copyright © 2015 JX Holdings, Inc. Action in E&P of Oil and Natural Gas Business Summary of the settlement
12Copyright © 2015 JX Holdings, Inc. Action in Metal Business Strategies of 2'nd Medium-Term Management Plan Initiatives up to October 2015 Commenced copper concentrate producion at Caserones Copper Mine Commenced commercial application of biomining technologies Completed construction of copper concentrate and sulfuric acid multiple carrier “Koryu” and started two- vessel fleet Increased efficiency of electrolytic refining method at Tamano Smelter by installing Permanent Cathode Method Started up operation of Kakegawa Works, which produces precision components, connectors, and other products Completed new factory in Taiwan for production of sputtering target materials Began sales of world's highest strength titanium copper foil Implemented restructuring of electro-deposited copper foil business Started electroless Under Bump Metallurgy metal plating service in Taiwan Consolidated and increased efficiency of various metal production bases Acquired Minister of the Environment authorization for detoxification processing of low-concentration PCB waste Established operating bases for collection of recycled materials in United States (Recycling and environmental services) Building an international resource recycling business with an environmentally friendly zero emission system (Copper smelting and refining) Establishing a business structure with world-class cost- competitiveness (Resources development) Establishing a highly profitable structure by increasing copper mine equity interests (Electronic Materials) Securing and expanding the world's top share in each product market Summary of the settlement
Copyright © 2015 JX Holdings, Inc. Financial Results for 1H FY2015 (April 1, 2015 - September 30, 2015) 13
14Copyright © 2015 JX Holdings, Inc. Outline of 1H FY2015 Financial Results for 1H FY2015 105 57 -48 -46% 313 256 -57 -18% 103 122 +19 +18% JPY Billion JPY Billion JPY Billion 5,442.4 4,552.6 -889.8 -16% 14.3 (45.5) -59.8 - 27.7 17.8 -9.9 -36% 42.0 (27.7) -69.7 - (29.6) (118.7) -89.1 - 71.6 91.0 +19.4 +27% (5.9) (13.5) -7.6 - 17.7 (44.9) -62.6 - Changes Net Sales Operating Income Non-operating Income (Expenses), Net Ordinary Income Special Gain (Loss), Net Profit attributable to owners of parent Crude Oil (Dubai)* ($/bbl) Exchange Rate (Yen/$) Ordinary Income Excl. Inventory Valuation Copper (¢/lb) * Average from March to August (nearly equal to arrived crude cost) <314> Jan.-Jun.2014 <269> <-45> 1H FY2014 (Actual) 1H FY2015 (Actual) < 102> <120> <+18> -Inventory Valuation <-14%> <+18%> Jan.-Jun.2014 Jan.-Jun.2015 Jan.-Jun.2015
15 1H FY2014 Actual vs. 1H FY2015 Actual Changes in Ordinary Income (Loss) by Segment Copyright © 2015 JX Holdings, Inc. Financial Results for 1H FY2015 JPY Billion JPY Billion JPY Billion Energy (35.3) (72.4) -37.1 - - Inventory Valuation (30.5) (116.6) -86.1 - Excl. Inventory Valuation (4.8) 44.2 +49.0 - - Petroleum Products (14.0) 11.7 +25.7 - - Petrochemicals 9.2 32.5 +23.3 +253% Oil and Natural Gas E&P 34.7 17.3 -17.4 -50% Metals 23.9 10.6 -13.3 -56% - Inventory Valuation 0.9 (2.1) -3.0 - Excl. Inventory Valuation 23.0 12.7 -10.3 -45% Others 18.7 16.8 -1.9 -10% Total 42.0 (27.7) -69.7 - Excl. Inventory Valuation 71.6 91.0 +19.4 +27% Changes 1H FY2014 (Actual) 137 1H FY2015 (Actual)
(4.8) +2.0 +23.7 +0.9 +22.4 44.2 Sales volume Fuel costreduction and others Sales volume Margin and others (20.0) - 20.0 40.0 60.0 80.0 1H FY2014 Ordinary Income Excl. inv entory v aluation 1H FY2015 Ordinary Income Excl. inv entory v aluation Petroleum Products +25.7 <(14.0)→11.7> Petrochemicals +23.3 <9.2→32.5> Energy +49.0 <(4.8) → 44.2> (JPY Billion) Petroleum products : Ordinary income increased mainly due to fuel cost reduction and decreased other costs. Petrochemicals : Ordinary income increased mainly due to higher margins on yen basis. 16Copyright © 2015 JX Holdings, Inc. 1H FY2014 Actual vs. 1H FY2015 Actual Changes in Ordinary Income - Energy Business - Financial Results for 1H FY2015
17Copyright © 2015 JX Holdings, Inc. 1H FY2014 Actual vs. 1H FY2015 Actual Changes in Ordinary Income - Oil and Natural Gas E&P Business - Financial Results for 1H FY2015 34.7 17.3 Sales volume Crude oil price Cost, exchange rate and others +9.0 -52.0 +25.6 (20.0) - 20.0 40.0 60.0 (JPY Billion) 1H FY2015 Ordinary Income Ordinary income decreased mainly due to declined crude oil price, despite increased sales volume and yen depreciation. Oil and Natural Gas E&P -17.4 <34.7→17.3>1H FY2014 Ordinary Income Sales Volume (1,000 B/D) Jan.-Jun. 2014 Jan.-Jun. 2015 112 116 2014 2015 Jan.- Jun. Jan.- Jun. Brent 109 → 58 $/B Dubai 105 → 57
18 Copyright © 2015 JX Holdings, Inc. 1H FY2014 Actual vs. 1H FY2015 Actual Changes in Ordinary Income - Metals Business- Financial Results for 1H FY2015 23.0 12.7 Copper price Decrease of dividend and others Income decline of LSN and others Titanium Recycling and Environmental Services Electronic Materials -8.7 -6.5 -4.4 +4.6 -0.7 +5.4 - 10.0 20.0 30.0 1H FY2014 Ordinary Income Excl. inv entory v aluation (JPY Billion) Metals -10.3 <23.0→12.7> Resources Development -15.2<9.7→(5.5)> Smelting & Refining -4.4<7.4→3.0> Electronic Materials, Recycling and Environmental Services and Titanium +9.3<5.9→15.2> 2014 2015 Jan.- Jun. Apr.- Sep. Average Copper Price 314 -> 256 ¢/lb Price Range -20<335→315> -> -43<274→231> 1H FY2015 Ordinary Income Excl. inv entory v aluation Ordinary income decreased due to declined copper price and income decline of an affiliate company LSN by impairment loss and back tax, despite increased sales volume of electronic materials and titanium, and benefit from yen depreciation.
Other assets 7,094.1 Other assets 6,910.8 329.3 272.1 Shareholders' equity 1,936.8 Shareholders' equity 1,849.4 493.0 485.2 Other debt 2,373.3 Other debt 2,045.0 Interest bearing debt 2,620.3 Interest bearing debt 2,803.3 at the end of March 2015 at the end of September 2015 Total：7,423.4 Total：7,182.9 JPY Billion Non controlling interests Cash and cash equivalents 19Copyright © 2015 JX Holdings, Inc. Consolidated Balance Sheets Consolidated Statement of Cash Flows Consolidated Cash Flows (JPY Billion) Consolidated Balance Sheets 1H FY2015 Net interest bearing debt, excluding cash and cash equivalents +240.2 - Negative net cash flows (233.8 billon yen) and others. Financial Results for 1H FY2015 Ordinary income (27.7) Depreciation and amortization 111.0 Working capital and others (100.1) Cash flows from operating activities (16.8) Cash flows from investing activities (183.2) Free cash flows (200.0) Dividends and others (33.8) Net cash flows (233.8) Shareholders' equity ratio Net D/E ratio At the end of September 2015 (Actual) 25.7% At the end of March 2015 (Actual) 26.1% 1.371.18
 Key Factors (October 2015 - March 2016) 20 Copyright © 2015 JX Holdings, Inc. Forecast for FY2015 - From April 1, 2015 to March 31, 2016 - Forecast for FY2015 Crude Oil($/Bbl) 50 Copper Price(¢/lb) 230 Exchange Rate(Yen/$) 120
21Copyright © 2015 JX Holdings, Inc. Outline of FY2015 Forecast Forecast for FY2015 60 53 -7 -12% 270 243 -27 -10% 115 121 +6 +5% JPY Billion JPY Billion JPY Billion 9,660.0 9,350.0 -310.0 -3% 250.0 110.0 -140.0 -56% 60.0 40.0 -20.0 -33% 310.0 150.0 -160.0 -52% 20.0 (80.0) -100.0 - 290.0 230.0 -60.0 -21% (10.0) (34.0) -24.0 - 160.0 45.0 -115.0 -72% Changes Net Sales Operating Income Non-operating Income (Expenses), Net Ordinary Income Special Gain (Loss), Net Profit attributable to owners of parent Crude Oil (Dubai)* ($/bbl) Exchange Rate (Yen/$) Ordinary Income Excl. Inventory Valuation Copper (¢/lb) * Average from March to February (nearly equal to arrived crude cost) <268> Jan.-Dec. 2015 <252> <-16> FY2015 Original Forecast (announced in May.) FY2015 Revised Forecast <116> < 121> <+5> -Inventory Valuation <-6%> <+4%> Jan.-Dec. 2015 Jan.-Dec. 2015 Jan.-Dec. 2015
22Copyright © 2015 JX Holdings, Inc. FY2015 Original Forecast vs. FY2015 Revised Forecast Changes in Ordinary Income (Loss) by Segment Forecast for FY2015 JPY Billion JPY Billion JPY Billion Energy 173.0 62.0 -111.0 -64% - Inventory Valuation 20.0 (78.0) -98.0 - Excl. Inventory Valuation 153.0 140.0 -13.0 -8% - Petroleum Products 108.0 86.0 -22.0 -20% - Petrochemicals 45.0 54.0 +9.0 +20% Oil and Natural Gas E&P 30.0 16.0 -14.0 -47% Metals 71.0 32.0 -39.0 -55% - Inventory Valuation 0.0 (2.0) -2.0 - Excl. Inventory Valuation 71.0 34.0 -37.0 -52% Others 36.0 40.0 +4.0 +11% Total 310.0 150.0 -160.0 -52% Excl. Inventory Valuation 290.0 230.0 -60.0 -21% Changes FY2015 Original Forecast (announced in May.) FY2015 Revised Forecast
23 Copyright © 2015 JX Holdings, Inc. FY2015 Original Forecast vs. FY2015 Revised Forecast Changes in Ordinary Income - Energy Business - Forecast for FY2015 153.0 +3.0 -25.0 -5.0 +14.0 140.0 Sales volume Margin and others Sales volume Margin and others - 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 FY2014 Ordinary Income Excl. inv entory v aluation Previous Forecast (announced in Nov .) Petroleum Products -16.0 <47.0→31.0> Petrochemicals -10.0 <26.0→16.0> Energy -26.0 <73.0→47.0> (JPY Billion) FY2014 Ordinary Income Excl. inv entory v aluation Revised Forecast FY2014 Ordinary Income Excl. inv entory v aluation Previous Forecast (announced in Nov .) Petroleum Products -16.0 <47.0→31.0> Petrochemicals -10.0 <26.0→16.0> Energy -26.0 <73.0→47.0> (JPY Billion) FY2014 Ordinary Income Excl. inv entory v aluation Revised Forecast FY2014 Ordinary Income Excl. inv entory v aluation Previous Forecast (announced in Nov .) Petroleum Products -16.0 <47.0→31.0> Petrochemicals -10.0 <26.0→16.0> Energy -26.0 <73.0→47.0> (JPY Billion) FY2014 Ordinary Income Excl. inv entory v aluation Revised Forecast Petroleum products : Ordinary income is expected to decrease mainly due to lower margins. Petrochemicals : Ordinary income is expected to increase due to higher margins. FY2015 Ordinary Income Excl. inv entory v aluation Original Forecast (announced in May .) Petroleum Products -22.0 <108.0→86.0> Petrochemicals +9.0 <45.0→54.0> Energy -13.0 <153.0→140.0> (JPY Billion) FY2015 Ordinary Income Excl. inv entory v aluation Revised Forecast
24 Copyright © 2015 JX Holdings, Inc. FY2015 Original Forecast vs. FY2015 Revised Forecast Changes in Ordinary Income - Oil and Natural Gas E&P Business- Forecast for FY2015 30.0 Costs, exchange rate and others 16.0 Sales volume Crude oil price -6.0 -20.0 +12.0 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 (JPY Billion) Ordinary income is expected to decrease mainly due to declined crude oil price, despite yen depreciation and cost reduction. Oil and Natural Gas E&P -14.0<30.0→16.0> FY2015 Ordinary Income Revised Forecast FY2015 Ordinary Income Original Forecast (announced in May.) Jan.- Dec. 2015 Jan.- Dec. 2015 ( Original ) ( Revised ) Brent 61 → 55 $/B Dubai 58 → 53 Sales Volume (1,000 B/D) Original Revised 129 125
25 Copyright © 2015 JX Holdings, Inc. FY2015 Original Forecast vs. FY2015 Revised Forecast Changes in Ordinary Income - Metals Business - Forecast for FY2015 71.0 -1.5 0.0 34.0 Copper price Cost reduction and others Income decline of LSN and others Electronic materials Recycling and Environmental Services Titanium -20.9 +0.4 -16.0 +1.0 - 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 (JPY Billion) Ordinary income is expected to decrease mainly due to declined copper price and income decline of an affiliate company LSN by impairment loss and back tax. Metals -37.0 <71.0→34.0> Resources Development -20.5 <8.0→(12.5)> Smelting and Refining -16.0 <30.0→14.0> Electronic Materials, Recycling and Environmental Services and Titanium -0.5 <33.0→32.5> FY2015 Ordinary Income Excl. inv entory v aluation Original Forecast (announced in May .) FY2015 Ordinary Imcome Excl. inv entory v aluation Rev ised Forecast Original Revised Apr.- Mar. Apr.- Mar. Average Copper Price 270 -> 243 ¢/lb Price Range(Apr.->Mar.) - 4<274->270> -> -44<274->230>
Copyright © 2015 JX Holdings, Inc. JX Nippon Oil & Energy Apr. Started commercial operation at Hachinohe and Kushiro LNG terminal. 26 JX Nippon Oil & Gas Exploration May. Developed new plating technology, hyperTin®. JX Nippon Mining & Metals Jun. Kawasaki Natural Gas Power Generation Co., Ltd. started full consideration on expansion of the generator. May. Reorganized, aiming at more enforcement of the risk management system. Major Topics (from April to October 2015) Reference Apr. Made an oil discovery at Deepwater Block R offshore Malaysia. Sep. Started trial operation of a solvent de-asphalting (SDA) equipment and a power generation facility at the Kashima Refinery. Aug. Acquired a Participating Interest in the Foz do Amazonas Basin of the Brazilian Amazon region. Aug. Field Development Plan approved for Culzean in UK North Sea .
27Copyright © 2015 JX Holdings, Inc. Key Factors *1 Crude oil arrival basis *2 Due to a change of fiscal term, referring terms are different. 2014 1Q: Jan.-Mar., 1H: Jan.-Jun., Full Year: Jan.-Dec.; 2015 1Q: Apr.-Jun., 1H: Apr.-Sep., Full Year: Apr.-Mar. *3 Production of companies closing in Dec., 1Q: Jan.-Mar., 1H: Jan.-Jun., Full Year: Jan.-Dec.; closing in Mar., 1Q: Apr.-Jun., 1H: Apr.-Sep., Full Year: Apr.-Mar. Reference 1Q 1H Full Year 1Q 1H Full Year Actual Actual Actual Actual Exchange rate [Yen/$] 102 103 110 121 122 121 Crude oil price [Dubai]［Apri.-Mar.］*1 [$/bbl] 105 105 88 59 57 53 Sales volume <Crude oil equivalent> [1,000 bbl/day] 115 112 115 113 116 125 Crude oil price [Brent] ［Jan.-Dec.］ [$/bbl] 108 109 99 54 58 55 Metals Copper price [LME] *2 [¢/lb] 319 314 311 275 256 243 Equity entitled copper mine production *3 [1,000 tons/period ・year] 33 65 148 39 81 206 PPC copper cathode sales [1,000 tons/period ・year] 152 307 623 144 308 597 Treated rolled copper foil sales [1,000 km/month] 4.0 4.0 4.1 5.0 5.1 4.7 Precision rolled products sales [1,000 tons/month] 3.7 3.8 3.8 3.7 3.8 3.9 Gold recovery volume by Recycling & Environmental Services [tons/period ・year] 1.3 3.0 5.9 1.6 3.5 6.6 FY2014 FY2015 Actual Forecast (announced in Nov.) All segments Energy Oil and Natural Gas E&P
28 Sensitivity Analysis (FY2015 basis)  Sensitivity analysis  Key factors (From October 2015 to March 2016) Exchange Rate: 120Yen/$ Crude Oil : 50$/bbl (Dubai spot) Copper Price (LME) : 230 ¢/lb Copyright © 2015 JX Holdings, Inc. Reference (JPYBillion) Key Factors Change Energy (In-house fuel costs rise, margin improvement in petrochemicals) +2.0 Oil and Natural Gas E&P -0.5 Metals (Margin improvement, exchange gain) +1.0 Subtotal +2.5 Inventory valuation gain +19.0 Total +21.5 Energy (In-house fuel costs drop) +4.5 Oil and Natural Gas E&P -3.0 Subtotal +1.5 Inventory valuation gain -45.0 Total -43.5 Metals +4.0 Total +4.0 Copper Price (LME) +10¢/lb Segment Impact Exchange Rate 5 Yen/$ yen depreciation Crude Oil (Dubai spot) -5$/bbl
29Copyright © 2015 JX Holdings, Inc. Cautionary Statement Regarding Forward-Looking Statements This notice contains certain forward-looking statements, however, actual results may differ materially from those reflected in any forward-looking statement, due to various factors, including but not limited to, the following: (1) macroeconomic conditions and changes in the competitive environment in the energy, resources and materials industries; (2) changes in laws and regulations; and (3) risks related to litigation and other legal proceedings.

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Jx presentation

  • 1.
    0 Financial Results forFY 2015 1H - From April 1, 2015 to September 30, 2015 - November 4, 2015 Tokyo 5020Security Code Representative Director, President Yukio Uchida Director, Senior Vice President Kunimitsu Oba
  • 2.
    Copyright © 2015JX Holdings, Inc. Agenda Summary of the settlement of accounts Financial Results for FY2015 1H Forecast for FY2015  Business Environment  Outline of Financial Results for FY2015 1H  Initiatives under the Final year of 2nd Mid-Term Management Plan  Outline of Forecast for FY2015  Forecast for CAPEX, Cash Flow  Current Situation of Caserones Copper Mine  Shareholder Return Policy  Progress of 2nd Mid-Term Management Plan 2 4 5 6 7 8 9 10  Financial Results for FY 2015 1H  Forecast for FY2015  Major Topics  Key Factors  Sensitivity Analysis 13 20 26 27 28 Director, Senior Vice President Kunimitsu Oba 1 Representative Director, President Yukio Uchida
  • 3.
    Copyright © 2015JX Holdings, Inc. Business Environment 1 Resource Price and Exchange Rate (From Apr. 2015 to Sep. 2015) 2  Crude oil and copper price greatly declined after June because of concerns about economic slowdown of China, and other factors.  Exchange rate stays around 120 yen per dollars. 40 50 60 70 80 90 100 110 April October 2014 2015 Dubai Crude Oil $/bbl 200 250 300 350 April October 2014 2015 Copper (LME) ¢/lb 95 100 105 110 115 120 125 April October 2014 2015 Exchange Rate Yen/$ Summary of the settlement
  • 4.
    0 2 4 6 8 10 12 April 2013 OctoberApr 2014 October Apr 2015 October yen/L Copyright © 2015 JX Holdings, Inc. Business Environment 2 Margin of Petroleum Products and Paraxylene 3 Margins of Gasoline, Kerosene, Diesel Fuel and Fuel Oil A  Petroleum Products margin declined rapidly in July and August due to time lag generated by crude oil rapid decline.  Margin level of Paraxylene is about the same level as 1H FY2014. Margin = Spot Price – All Japan Crude CIF (including petroleum tax and interest) * In case of ACP undecided, average price of spot market is adopted. Margin of Paraxylene 0 200 400 600 800 1,000 1,200 1,400 1,600 Apr. 2013 October Apr. 2014 October Apr. 2015 Paraxylene(ACP) Paraxylene Margin(vs.Crude Oil) Paraxylene Margin(vs.Naphtha) $/ton Summary of the settlement
  • 5.
    Copyright © 2015JX Holdings, Inc. 4 Ordinary income decreased from the same quarter of the previous year due to inventory valuation loss with crude oil slump. Ordinary income excluding inventory valuation increased from the same quarter of the previous year but decreased from last forecast announced in July mainly due to petroleum products margin decline. Ordinary Income Excl. Inventory Valuation Ordinary Income 71.6 91.0 120.0 -30.0 -10.0 10.0 30.0 50.0 70.0 90.0 110.0 130.0 150.0 FY2014 1H FY2015 1H FY2015 1H Last Forecast (Announced in July) Others Metals E&P Energy （JPY Billion） Summary of the settlement Outline of Financial Results for FY2015 1H (JPY billion) FY2014 1H FY2015 1H FY2015 1H Last Forecast (Announced in July) Ordinary Income 42.0 (27.7) 140.0 Inventory Valuation (29.6) (118.7) 20.0 Ordinary Income Excl.Inventory Valuation 71.6 91.0 120.0
  • 6.
     Additional costreduction  Promoting cash flow generating action (Compressing investment, Selling assets)  Safe and stable operation(Trouble reduction)  Building competitive production and marketing structure  Securing a margin by adequacy of the supply-demand environment  Improving profitability by cost reduction  Promoting replacement of asset portfolio  Realizing early and stable full operation of Caserones Copper Mine and reducing operating cost  Strengthening profitability of midstream/downstream businesses  Strengthening profitability under resource price  Improving balance sheet (Strengthening financial position)  Strengthening profitability in Petroleum Refining and Marketing business  Implementing business strategy under crude price  Strengthening profitability under copper price 5Copyright  2015 JX Holdings, Inc. Recognition of Issue Way to Resolution Energy E&P of Oil and Natural Gas Metals Summary of the settlement Initiatives under the Final year of 2nd Mid-Term Management Plan  In fiscal 2015, which will be the final year of the 2nd Mid-Term Management Plan, piling up increasing profit by taking all measures and improving financial position by compressing investment and selling assets.
  • 7.
    Revised Forecast Last Forecast (Announcedin May) Crude Price ($/Bbl)* 53 60 Copper Price (¢/lb) 243 270 Exchange Rate (yen/$) 121 115 *Average from March to February 255.2 230.0 290.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 FY2014 FY2015 Revised Forecast FY2015 Last Forecast (Announced in May) Others Metals E&P Energy （JPY Billion） Copyright © 2015 JX Holdings, Inc. 6 Ordinary income excluding inventory valuation decreased from last forecast announced in May due to resources price’s down, petroleum products margin decline, and other factors. Key Factors Ordinary Income Ordinary Income Excl. Inventory Valuation Outline of Forecast for FY2015 Summary of the settlement (JPY billion) FY2014 FY2015 Revised Forecast FY2015 Last Forecast (Announced in May) Ordinary Income (150.1) 150.0 310.0 Inventory Valuation (405.3) (80.0) 20.0 Ordinary Income Excl.Inventory Valuation 255.2 230.0 290.0
  • 8.
    (JPY Billion) Energy 300150 450 540 E&P 310 120 430 390 Metals 270 60 330 300 Others 40 30 70 70 Summary 920 360 1,280 1,300 FY2013-2014 (Actual) FY2015 (Forecast) FY2013-2015 (Forecast) 2'nd Mid-Term Plan (JPY billion) (Revised Forecast) (Original Plan) Ordinary income 300.0 1,100.0 Depreciation and amortization 620.0 650.0 Decrease in working capital 510.0 (330.0) Cash flows from operating activities 1,430.0 1,420.0 Cash flows from investing activities (1,180.0) (1,240.0) Free cash flows 250.0 180.0 Copyright © 2015 JX Holdings, Inc. 7 Cash Flow（Cumulative total for FY2013 to 2015） Change of Net D/E Ratio CAPEX Forecast for CAPEX, Cash Flow Summary of the settlement 7,274.9 7,781.8 7,423.4 1,942.7 2,135.1 1,936.8 2,299.2 2,520.0 2,291.0 1.2 1.2 1.2 1.2 0.0 0.5 1.0 0 2,000 4,000 6,000 8,000 10,000 2013.3 2014.3 2015.3 2016.3 Total Asset (Left axis) Shareholder's equity (Left axis) Net Interest Bearing Debt (Left axis) Net Debt Equity Ratio (Right axis) Target 0.9 times or less Net D/E ratio (times) (JPY billion)
  • 9.
    Copyright © 2015JX Holdings, Inc. 8 Current Situation of Caserones Copper Mine Problems To Be Solved for Stable Continuing Full Operation  To Build an automated operation program  To Complete the preparation of the waste tailing deposit site Built the Framework Enabling Full Operation Actual Input of Ore into the Concentrate Treatment Process (per month) As of February, 2015 Current Situation  Correcting Some Defects Arising on Full Operation As of September, 2015
  • 10.
    Indication of ShareholderReturn for 2nd Medium-Term Management Plan Period Copyright © 2015 JX Holdings, Inc. Based on the basic policy, during the 2nd medium-term management plan period (FY2013-2015), we will strive to maintain dividends of 16 yen per share per annum. When we secure stable profitability in existing business and foresee realization of return from strategic investments, we will expand shareholder return centering on increase of dividend. Reference) Dividend from FY2010-2015 Shareholder Return Policy 9 Basic Shareholder Return Policy Redistribute profits by reflecting consolidated business results while striving to maintain stable dividends 2010 2011 2012 2013 2014 2015 (Forecast) Dividend (yen/share) 15.5 16.0 16.0 16.0 16.0 16.0 EPS (yen/share) 125 69 64 43 -111 18 Summary of the settlement
  • 11.
    Strategies of 2'ndMedium-Term Management Plan Initiatives up to October 2015 Proceeding with renewal of Dr. Drive car care and maintenance service Ceased crude oil refinement at Muroran Refinery, targeting its conversion to petrochemical plant Decided to install petroleum coke power generation equipment at Mizushima Refinery Commenced installation of a solvent de-asphalting facility and a power generation facility at Kashima Refinery Proceeding with mega solar power generation business Decided to compete in retail electricity sales for homes Opened hydrogen supply station Commenced commercial operation of LNG terminal in Hachinohe and Kushiro Submitted a preliminary environmental impact statement and started full-scale examination of the enlargement at Kawasaki Natural Gas Power Generation Commenced importing and marketing businesses of fuel oil in Indonesia Established lubricants joint venture company in India Commenced commercial production of paraxylene at facilities of Ulsan Aromatics, of South Korea Started consideration to join revamp and construction of refineries in Indonesia and Vietnam Strengthening profitability in petroleum refining and a marketing, the core business Establishing presence in overseas markets Enhancing business as an Energy Conversion Company 10Copyright © 2015 JX Holdings, Inc. Action in Energy Business Summary of the settlement
  • 12.
    Strategies of 2'ndMedium-Term Management Plan Initiatives up to October 2015 (Australia) Commenced production at Finucane South oil field Discovered gas in block WA-49-R Discovered crude oil in WA-435-P block (Malaysia) Discovered crude oil in Deepwater Block R (Vietnam) Confirmed gas and condensate in blocks 05-1b/c (Papua New Guinea) Started operation of LNG project (United States) Started enhanced oil recovery project using processed flue gas from coal power generation plant (U.K. North Sea) Commenced production at Kinnoull oil field Discovered crude oil in 22/16, 17b block Expanding reserves and production volume, mainly through exploration Establishing superiority by focusing on Core Countries and Core Technologies 11Copyright © 2015 JX Holdings, Inc. Action in E&P of Oil and Natural Gas Business Summary of the settlement
  • 13.
    12Copyright © 2015JX Holdings, Inc. Action in Metal Business Strategies of 2'nd Medium-Term Management Plan Initiatives up to October 2015 Commenced copper concentrate producion at Caserones Copper Mine Commenced commercial application of biomining technologies Completed construction of copper concentrate and sulfuric acid multiple carrier “Koryu” and started two- vessel fleet Increased efficiency of electrolytic refining method at Tamano Smelter by installing Permanent Cathode Method Started up operation of Kakegawa Works, which produces precision components, connectors, and other products Completed new factory in Taiwan for production of sputtering target materials Began sales of world's highest strength titanium copper foil Implemented restructuring of electro-deposited copper foil business Started electroless Under Bump Metallurgy metal plating service in Taiwan Consolidated and increased efficiency of various metal production bases Acquired Minister of the Environment authorization for detoxification processing of low-concentration PCB waste Established operating bases for collection of recycled materials in United States (Recycling and environmental services) Building an international resource recycling business with an environmentally friendly zero emission system (Copper smelting and refining) Establishing a business structure with world-class cost- competitiveness (Resources development) Establishing a highly profitable structure by increasing copper mine equity interests (Electronic Materials) Securing and expanding the world's top share in each product market Summary of the settlement
  • 14.
    Copyright © 2015JX Holdings, Inc. Financial Results for 1H FY2015 (April 1, 2015 - September 30, 2015) 13
  • 15.
    14Copyright © 2015JX Holdings, Inc. Outline of 1H FY2015 Financial Results for 1H FY2015 105 57 -48 -46% 313 256 -57 -18% 103 122 +19 +18% JPY Billion JPY Billion JPY Billion 5,442.4 4,552.6 -889.8 -16% 14.3 (45.5) -59.8 - 27.7 17.8 -9.9 -36% 42.0 (27.7) -69.7 - (29.6) (118.7) -89.1 - 71.6 91.0 +19.4 +27% (5.9) (13.5) -7.6 - 17.7 (44.9) -62.6 - Changes Net Sales Operating Income Non-operating Income (Expenses), Net Ordinary Income Special Gain (Loss), Net Profit attributable to owners of parent Crude Oil (Dubai)* ($/bbl) Exchange Rate (Yen/$) Ordinary Income Excl. Inventory Valuation Copper (¢/lb) * Average from March to August (nearly equal to arrived crude cost) <314> Jan.-Jun.2014 <269> <-45> 1H FY2014 (Actual) 1H FY2015 (Actual) < 102> <120> <+18> -Inventory Valuation <-14%> <+18%> Jan.-Jun.2014 Jan.-Jun.2015 Jan.-Jun.2015
  • 16.
    15 1H FY2014 Actualvs. 1H FY2015 Actual Changes in Ordinary Income (Loss) by Segment Copyright © 2015 JX Holdings, Inc. Financial Results for 1H FY2015 JPY Billion JPY Billion JPY Billion Energy (35.3) (72.4) -37.1 - - Inventory Valuation (30.5) (116.6) -86.1 - Excl. Inventory Valuation (4.8) 44.2 +49.0 - - Petroleum Products (14.0) 11.7 +25.7 - - Petrochemicals 9.2 32.5 +23.3 +253% Oil and Natural Gas E&P 34.7 17.3 -17.4 -50% Metals 23.9 10.6 -13.3 -56% - Inventory Valuation 0.9 (2.1) -3.0 - Excl. Inventory Valuation 23.0 12.7 -10.3 -45% Others 18.7 16.8 -1.9 -10% Total 42.0 (27.7) -69.7 - Excl. Inventory Valuation 71.6 91.0 +19.4 +27% Changes 1H FY2014 (Actual) 137 1H FY2015 (Actual)
  • 17.
    (4.8) +2.0 +23.7 +0.9 +22.4 44.2 Sales volume Fuelcostreduction and others Sales volume Margin and others (20.0) - 20.0 40.0 60.0 80.0 1H FY2014 Ordinary Income Excl. inv entory v aluation 1H FY2015 Ordinary Income Excl. inv entory v aluation Petroleum Products +25.7 <(14.0)→11.7> Petrochemicals +23.3 <9.2→32.5> Energy +49.0 <(4.8) → 44.2> (JPY Billion) Petroleum products : Ordinary income increased mainly due to fuel cost reduction and decreased other costs. Petrochemicals : Ordinary income increased mainly due to higher margins on yen basis. 16Copyright © 2015 JX Holdings, Inc. 1H FY2014 Actual vs. 1H FY2015 Actual Changes in Ordinary Income - Energy Business - Financial Results for 1H FY2015
  • 18.
    17Copyright © 2015JX Holdings, Inc. 1H FY2014 Actual vs. 1H FY2015 Actual Changes in Ordinary Income - Oil and Natural Gas E&P Business - Financial Results for 1H FY2015 34.7 17.3 Sales volume Crude oil price Cost, exchange rate and others +9.0 -52.0 +25.6 (20.0) - 20.0 40.0 60.0 (JPY Billion) 1H FY2015 Ordinary Income Ordinary income decreased mainly due to declined crude oil price, despite increased sales volume and yen depreciation. Oil and Natural Gas E&P -17.4 <34.7→17.3>1H FY2014 Ordinary Income Sales Volume (1,000 B/D) Jan.-Jun. 2014 Jan.-Jun. 2015 112 116 2014 2015 Jan.- Jun. Jan.- Jun. Brent 109 → 58 $/B Dubai 105 → 57
  • 19.
    18 Copyright © 2015JX Holdings, Inc. 1H FY2014 Actual vs. 1H FY2015 Actual Changes in Ordinary Income - Metals Business- Financial Results for 1H FY2015 23.0 12.7 Copper price Decrease of dividend and others Income decline of LSN and others Titanium Recycling and Environmental Services Electronic Materials -8.7 -6.5 -4.4 +4.6 -0.7 +5.4 - 10.0 20.0 30.0 1H FY2014 Ordinary Income Excl. inv entory v aluation (JPY Billion) Metals -10.3 <23.0→12.7> Resources Development -15.2<9.7→(5.5)> Smelting & Refining -4.4<7.4→3.0> Electronic Materials, Recycling and Environmental Services and Titanium +9.3<5.9→15.2> 2014 2015 Jan.- Jun. Apr.- Sep. Average Copper Price 314 -> 256 ¢/lb Price Range -20<335→315> -> -43<274→231> 1H FY2015 Ordinary Income Excl. inv entory v aluation Ordinary income decreased due to declined copper price and income decline of an affiliate company LSN by impairment loss and back tax, despite increased sales volume of electronic materials and titanium, and benefit from yen depreciation.
  • 20.
    Other assets 7,094.1 Other assets 6,910.8 329.3 272.1 Shareholders' equity 1,936.8 Shareholders' equity 1,849.4 493.0485.2 Other debt 2,373.3 Other debt 2,045.0 Interest bearing debt 2,620.3 Interest bearing debt 2,803.3 at the end of March 2015 at the end of September 2015 Total：7,423.4 Total：7,182.9 JPY Billion Non controlling interests Cash and cash equivalents 19Copyright © 2015 JX Holdings, Inc. Consolidated Balance Sheets Consolidated Statement of Cash Flows Consolidated Cash Flows (JPY Billion) Consolidated Balance Sheets 1H FY2015 Net interest bearing debt, excluding cash and cash equivalents +240.2 - Negative net cash flows (233.8 billon yen) and others. Financial Results for 1H FY2015 Ordinary income (27.7) Depreciation and amortization 111.0 Working capital and others (100.1) Cash flows from operating activities (16.8) Cash flows from investing activities (183.2) Free cash flows (200.0) Dividends and others (33.8) Net cash flows (233.8) Shareholders' equity ratio Net D/E ratio At the end of September 2015 (Actual) 25.7% At the end of March 2015 (Actual) 26.1% 1.371.18
  • 21.
     Key Factors(October 2015 - March 2016) 20 Copyright © 2015 JX Holdings, Inc. Forecast for FY2015 - From April 1, 2015 to March 31, 2016 - Forecast for FY2015 Crude Oil($/Bbl) 50 Copper Price(¢/lb) 230 Exchange Rate(Yen/$) 120
  • 22.
    21Copyright © 2015JX Holdings, Inc. Outline of FY2015 Forecast Forecast for FY2015 60 53 -7 -12% 270 243 -27 -10% 115 121 +6 +5% JPY Billion JPY Billion JPY Billion 9,660.0 9,350.0 -310.0 -3% 250.0 110.0 -140.0 -56% 60.0 40.0 -20.0 -33% 310.0 150.0 -160.0 -52% 20.0 (80.0) -100.0 - 290.0 230.0 -60.0 -21% (10.0) (34.0) -24.0 - 160.0 45.0 -115.0 -72% Changes Net Sales Operating Income Non-operating Income (Expenses), Net Ordinary Income Special Gain (Loss), Net Profit attributable to owners of parent Crude Oil (Dubai)* ($/bbl) Exchange Rate (Yen/$) Ordinary Income Excl. Inventory Valuation Copper (¢/lb) * Average from March to February (nearly equal to arrived crude cost) <268> Jan.-Dec. 2015 <252> <-16> FY2015 Original Forecast (announced in May.) FY2015 Revised Forecast <116> < 121> <+5> -Inventory Valuation <-6%> <+4%> Jan.-Dec. 2015 Jan.-Dec. 2015 Jan.-Dec. 2015
  • 23.
    22Copyright © 2015JX Holdings, Inc. FY2015 Original Forecast vs. FY2015 Revised Forecast Changes in Ordinary Income (Loss) by Segment Forecast for FY2015 JPY Billion JPY Billion JPY Billion Energy 173.0 62.0 -111.0 -64% - Inventory Valuation 20.0 (78.0) -98.0 - Excl. Inventory Valuation 153.0 140.0 -13.0 -8% - Petroleum Products 108.0 86.0 -22.0 -20% - Petrochemicals 45.0 54.0 +9.0 +20% Oil and Natural Gas E&P 30.0 16.0 -14.0 -47% Metals 71.0 32.0 -39.0 -55% - Inventory Valuation 0.0 (2.0) -2.0 - Excl. Inventory Valuation 71.0 34.0 -37.0 -52% Others 36.0 40.0 +4.0 +11% Total 310.0 150.0 -160.0 -52% Excl. Inventory Valuation 290.0 230.0 -60.0 -21% Changes FY2015 Original Forecast (announced in May.) FY2015 Revised Forecast
  • 24.
    23 Copyright © 2015JX Holdings, Inc. FY2015 Original Forecast vs. FY2015 Revised Forecast Changes in Ordinary Income - Energy Business - Forecast for FY2015 153.0 +3.0 -25.0 -5.0 +14.0 140.0 Sales volume Margin and others Sales volume Margin and others - 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 FY2014 Ordinary Income Excl. inv entory v aluation Previous Forecast (announced in Nov .) Petroleum Products -16.0 <47.0→31.0> Petrochemicals -10.0 <26.0→16.0> Energy -26.0 <73.0→47.0> (JPY Billion) FY2014 Ordinary Income Excl. inv entory v aluation Revised Forecast FY2014 Ordinary Income Excl. inv entory v aluation Previous Forecast (announced in Nov .) Petroleum Products -16.0 <47.0→31.0> Petrochemicals -10.0 <26.0→16.0> Energy -26.0 <73.0→47.0> (JPY Billion) FY2014 Ordinary Income Excl. inv entory v aluation Revised Forecast FY2014 Ordinary Income Excl. inv entory v aluation Previous Forecast (announced in Nov .) Petroleum Products -16.0 <47.0→31.0> Petrochemicals -10.0 <26.0→16.0> Energy -26.0 <73.0→47.0> (JPY Billion) FY2014 Ordinary Income Excl. inv entory v aluation Revised Forecast Petroleum products : Ordinary income is expected to decrease mainly due to lower margins. Petrochemicals : Ordinary income is expected to increase due to higher margins. FY2015 Ordinary Income Excl. inv entory v aluation Original Forecast (announced in May .) Petroleum Products -22.0 <108.0→86.0> Petrochemicals +9.0 <45.0→54.0> Energy -13.0 <153.0→140.0> (JPY Billion) FY2015 Ordinary Income Excl. inv entory v aluation Revised Forecast
  • 25.
    24 Copyright © 2015JX Holdings, Inc. FY2015 Original Forecast vs. FY2015 Revised Forecast Changes in Ordinary Income - Oil and Natural Gas E&P Business- Forecast for FY2015 30.0 Costs, exchange rate and others 16.0 Sales volume Crude oil price -6.0 -20.0 +12.0 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 (JPY Billion) Ordinary income is expected to decrease mainly due to declined crude oil price, despite yen depreciation and cost reduction. Oil and Natural Gas E&P -14.0<30.0→16.0> FY2015 Ordinary Income Revised Forecast FY2015 Ordinary Income Original Forecast (announced in May.) Jan.- Dec. 2015 Jan.- Dec. 2015 ( Original ) ( Revised ) Brent 61 → 55 $/B Dubai 58 → 53 Sales Volume (1,000 B/D) Original Revised 129 125
  • 26.
    25 Copyright © 2015JX Holdings, Inc. FY2015 Original Forecast vs. FY2015 Revised Forecast Changes in Ordinary Income - Metals Business - Forecast for FY2015 71.0 -1.5 0.0 34.0 Copper price Cost reduction and others Income decline of LSN and others Electronic materials Recycling and Environmental Services Titanium -20.9 +0.4 -16.0 +1.0 - 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 (JPY Billion) Ordinary income is expected to decrease mainly due to declined copper price and income decline of an affiliate company LSN by impairment loss and back tax. Metals -37.0 <71.0→34.0> Resources Development -20.5 <8.0→(12.5)> Smelting and Refining -16.0 <30.0→14.0> Electronic Materials, Recycling and Environmental Services and Titanium -0.5 <33.0→32.5> FY2015 Ordinary Income Excl. inv entory v aluation Original Forecast (announced in May .) FY2015 Ordinary Imcome Excl. inv entory v aluation Rev ised Forecast Original Revised Apr.- Mar. Apr.- Mar. Average Copper Price 270 -> 243 ¢/lb Price Range(Apr.->Mar.) - 4<274->270> -> -44<274->230>
  • 27.
    Copyright © 2015JX Holdings, Inc. JX Nippon Oil & Energy Apr. Started commercial operation at Hachinohe and Kushiro LNG terminal. 26 JX Nippon Oil & Gas Exploration May. Developed new plating technology, hyperTin®. JX Nippon Mining & Metals Jun. Kawasaki Natural Gas Power Generation Co., Ltd. started full consideration on expansion of the generator. May. Reorganized, aiming at more enforcement of the risk management system. Major Topics (from April to October 2015) Reference Apr. Made an oil discovery at Deepwater Block R offshore Malaysia. Sep. Started trial operation of a solvent de-asphalting (SDA) equipment and a power generation facility at the Kashima Refinery. Aug. Acquired a Participating Interest in the Foz do Amazonas Basin of the Brazilian Amazon region. Aug. Field Development Plan approved for Culzean in UK North Sea .
  • 28.
    27Copyright © 2015JX Holdings, Inc. Key Factors *1 Crude oil arrival basis *2 Due to a change of fiscal term, referring terms are different. 2014 1Q: Jan.-Mar., 1H: Jan.-Jun., Full Year: Jan.-Dec.; 2015 1Q: Apr.-Jun., 1H: Apr.-Sep., Full Year: Apr.-Mar. *3 Production of companies closing in Dec., 1Q: Jan.-Mar., 1H: Jan.-Jun., Full Year: Jan.-Dec.; closing in Mar., 1Q: Apr.-Jun., 1H: Apr.-Sep., Full Year: Apr.-Mar. Reference 1Q 1H Full Year 1Q 1H Full Year Actual Actual Actual Actual Exchange rate [Yen/$] 102 103 110 121 122 121 Crude oil price [Dubai]［Apri.-Mar.］*1 [$/bbl] 105 105 88 59 57 53 Sales volume <Crude oil equivalent> [1,000 bbl/day] 115 112 115 113 116 125 Crude oil price [Brent] ［Jan.-Dec.］ [$/bbl] 108 109 99 54 58 55 Metals Copper price [LME] *2 [¢/lb] 319 314 311 275 256 243 Equity entitled copper mine production *3 [1,000 tons/period ・year] 33 65 148 39 81 206 PPC copper cathode sales [1,000 tons/period ・year] 152 307 623 144 308 597 Treated rolled copper foil sales [1,000 km/month] 4.0 4.0 4.1 5.0 5.1 4.7 Precision rolled products sales [1,000 tons/month] 3.7 3.8 3.8 3.7 3.8 3.9 Gold recovery volume by Recycling & Environmental Services [tons/period ・year] 1.3 3.0 5.9 1.6 3.5 6.6 FY2014 FY2015 Actual Forecast (announced in Nov.) All segments Energy Oil and Natural Gas E&P
  • 29.
    28 Sensitivity Analysis (FY2015basis)  Sensitivity analysis  Key factors (From October 2015 to March 2016) Exchange Rate: 120Yen/$ Crude Oil : 50$/bbl (Dubai spot) Copper Price (LME) : 230 ¢/lb Copyright © 2015 JX Holdings, Inc. Reference (JPYBillion) Key Factors Change Energy (In-house fuel costs rise, margin improvement in petrochemicals) +2.0 Oil and Natural Gas E&P -0.5 Metals (Margin improvement, exchange gain) +1.0 Subtotal +2.5 Inventory valuation gain +19.0 Total +21.5 Energy (In-house fuel costs drop) +4.5 Oil and Natural Gas E&P -3.0 Subtotal +1.5 Inventory valuation gain -45.0 Total -43.5 Metals +4.0 Total +4.0 Copper Price (LME) +10¢/lb Segment Impact Exchange Rate 5 Yen/$ yen depreciation Crude Oil (Dubai spot) -5$/bbl
  • 30.
    29Copyright © 2015JX Holdings, Inc. Cautionary Statement Regarding Forward-Looking Statements This notice contains certain forward-looking statements, however, actual results may differ materially from those reflected in any forward-looking statement, due to various factors, including but not limited to, the following: (1) macroeconomic conditions and changes in the competitive environment in the energy, resources and materials industries; (2) changes in laws and regulations; and (3) risks related to litigation and other legal proceedings.