Segment Information

Overview of reportable segments

The reportable segments for the Group's oil and natural gas development activities are composed of individual mining area and others for which separate financial information is available in order for the Board of Directors to make Group management decisions.
Since the Group operates oil and natural gas businesses globally, the Group's reportable segments are the mining areas and others by geographical region, categorized in "Japan", "Asia & Oceania" (mainly Indonesia, Australia and East Timor), "Eurasia (Europe & NIS)" (mainly Azerbaijan and Kazakhstan), "Middle East & Africa" (mainly UAE) and "Americas."
The Company produces oil and natural gas in each segment. In addition, the Company conducts purchasing and marketing activities for natural gas and petroleum products and others in "Japan" segment.

Information on sales and income (loss), identifiable assets, and other items by reportable segment

2019/12

Net sales

(Millions of yen)

  Reportable segments Adjustments
(*1)
Consolidated
(*2)
Japan Asia &
Oceania
Eurasia
(Europe & NIS)
Middle East &
Africa
Americas Total
(1) Sales to third parties 97,038 240,927 79,054 569,166 13,819 1,000,005 - 1,000,005
(2) Intercompany sales and transfers between segments - 4,465 - - - 4,465 (4,465) -
Total 97,038 245,392 79,054 569,166 13,819 1,004,470 (4,465) 1,000,005

Segment income (loss)

(Millions of yen)

Reportable segments Adjustments
(*1)
Consolidated
(*2)
Japan Asia &
Oceania
Eurasia
(Europe & NIS)
Middle East &
Africa
Americas Total
13,156 117,801 20,806 364,467 (6,545) 509,685 (11,044) 498,641

Segment assets

(Millions of yen)

Reportable segments Adjustments
(*1)
Consolidated
(*2)
Japan Asia &
Oceania
Eurasia
(Europe & NIS)
Middle East &
Africa
Americas Total
274,520 3,063,677 596,930 562,032 82,630 4,579,791 270,203 4,849,995

Other items

(Millions of yen)

  Reportable segments Adjustments
(*1)
Consolidated
(*2)
Japan Asia &
Oceania
Eurasia
(Europe & NIS)
Middle East &
Africa
Americas Total
Depreciation and amortization 11,685 72,890 5,004 37,410 7,811 134,802 826 135,629
Amortization of goodwill - - - - (192) (192) 5,214 5,022
Investment to affiliates accounted for by the equity method 1,904 257,139 12,440 24,421 - 295,905 1,060 296,965
Increase of tangible fixed assets and intangible assets 2,598 74,784 6,736 52,384 49,110 185,614 997 186,612

Note: 1.

  1. 1.Adjustments of segment income of ¥(11,044) million are corporate expenses. Corporate expenses are mainly amortization of goodwill and general administrative expenses that are not allocated to a reportable segment.
  2. 2.Adjustments of segment assets of ¥270,203 million include elimination of inter-segment transactions of ¥(385) million and corporate assets of ¥270,589 million. Corporate assets are mainly goodwill, cash and deposits, investment securities and assets concerned with the administrative divisions that are not allocated to a reportable segment.
  3. 3.Adjustments of depreciation and amortization of ¥826 million consist mainly of depreciation of corporate assets.
  4. 4.Adjustments of amortization of goodwill of ¥5,214 million consist of amortization of goodwill not attributable to a reportable segment.
  5. 5.Adjustments of investment to affiliates accounted for by the equity method of ¥1,060 million consist of investment to affiliates accounted for by the equity method not attributable to a reportable segment.
  6. 6.Adjustments of increase of tangible fixed assets and intangible assets of ¥997 million consist mainly of capital expenditure to corporate assets.

Note: 2.

Segment income is reconciled with operating income on the consolidated statement of income.

2019/3

Net sales

(Millions of yen)

  Reportable segments Adjustments
(*1)
Consolidated
(*2)
Japan Asia &
Oceania
Eurasia
(Europe & NIS)
Middle East &
Africa
Americas Total
(1) Sales to third parties 140,311 91,630 116,718 614,420 8,308 971,388 - 971,388
(2) Intercompany sales and transfers between segments - 4,810 - - - 4,810 (4,810) -
Total 140,311 96,440 116,718 614,420 8,308 976,199 (4,810) 971,388

Segment income (loss)

(Millions of yen)

Reportable segments Adjustments
(*1)
Consolidated
(*2)
Japan Asia &
Oceania
Eurasia
(Europe & NIS)
Middle East &
Africa
Americas Total
29,210 27,336 31,405 412,064 (8,751) 491,264 (16,983) 474,281

Segment assets

(Millions of yen)

Reportable segments Adjustments
(*1)
Consolidated
(*2)
Japan Asia &
Oceania
Eurasia
(Europe & NIS)
Middle East &
Africa
Americas Total
291,284 2,971,494 600,987 530,432 42,317 4,436,516 357,029 4,793,545

Other items

(Millions of yen)

  Reportable segments Adjustments
(*1)
Consolidated
(*2)
Japan Asia &
Oceania
Eurasia
(Europe & NIS)
Middle East &
Africa
Americas Total
Depreciation and amortization 17,561 34,134 7,092 38,769 7,957 105,515 1,384 106,899
Amortization of goodwill - - - - (192) (192) 6,952 6,760
Investment to affiliates accounted for by the equity method 1,921 301,699 8,117 22,771 - 334,511 1,473 335,984
Increase of tangible fixed assets and intangible assets 3,865 241,755 6,388 61,437 3,476 316,924 777 317,701

Note: 1.

  1. 1.Adjustments of segment income of ¥(16,983) million include elimination of inter-segment transactions of ¥13 million and corporate expenses of ¥(16,996) million. Corporate expenses are mainly amortization of goodwill and general administrative expenses that are not allocated to a reportable segment.
  2. 2.Adjustments of segment assets of ¥357,029 million include elimination of inter-segment transactions of ¥(1) million and corporate assets of ¥357,030 million. Corporate assets are mainly goodwill, cash and deposits, investment securities and assets concerned with the administrative divisions that are not allocated to a reportable segment.
  3. 3.Adjustments of depreciation and amortization of ¥1,384 million consist mainly of depreciation of corporate assets.
  4. 4.Adjustments of amortization of goodwill of ¥6,952 million consist of amortization of goodwill not attributable to a reportable segment.
  5. 5.Adjustments of investment to affiliates accounted for by the equity method of ¥1,473 million consist of investment to affiliates accounted for by the equity method not attributable to a reportable segment.
  6. 6.Adjustments of increase of tangible fixed assets and intangible assets of ¥777 million consist mainly of capital expenditure to corporate assets.

Note: 2.

Segment income is reconciled with operating income on the consolidated statement of income.