Review of the Upstream Portfolio Through Selectivity and Focus

「In April 2026, we also transferred part of our shares in SCM Minera Lumina Copper Chile.」

「In response, the company approached JX金属 regarding the sale of part of the JX金属 shares. Following discussions, the company received a proposal from JX金属 to tender its shares in this tender offer.」

「Decided to tender shares into JX Metal’s tender offer for its own shares」

「On 19 March 2025, the company's subsidiary JX金属株式会社 (hereinafter, JX金属) was newly listed on the Tokyo Stock Exchange Prime Market. In connection with the listing, the sale of part of the JX金属 shares held by the company resulted in JX金属 becoming an equity-method affiliate rather than a subsidiary.」

「In March 2024, the company transferred 20% of the PPC shares, of which ＪＸ金属 held 67.8%, to Marubeni Corporation (hereinafter, Marubeni).」

「Under the agreement between ＪＸ金属 and Lundin Mining, 19% of the MLCC shares held by ＪＸ金属 is to be transferred in the future to Lundin Mining or a third party,」

「The transfer of the 51% stake in SCM Minera Lumina Copper Chile to Lundin Mining Corporation was completed on 13 July.」

「The company decided to transfer its 51% stake in MLCC, the operator of the Caserones copper mine in Chile, to Lundin Mining.」

「As part of its business portfolio review focused on selectivity and concentration, the company sold all shares of its UK operating company, JX Nippon Exploration and Production (U.K.) Limited.」

「JX Nippon Oil & Gas Exploration Corporation has been reshaping its business portfolio to establish an asset composition best suited to realizing its business strategy. As part of this initiative, in November 2021 it decided to sell its UK oil and natural gas exploration and production business to NEO Energy Upstream UK Limited.」

「At the end of the current consolidated fiscal year, shares related to exploration interests held by an overseas subsidiary in the Energy segment were classified as a disposal group held for sale, based on the execution of an agreement to sell those shares to an external company in connection with the withdrawal from the coal business.」

「The assets and liabilities newly classified as held for sale during the first quarter of the current consolidated cumulative period amounted to ¥938 million and ¥1,516 million, respectively. They mainly comprised equity-method investments related to the transfer of an interest in a jointly controlled entity in the Metals segment, and provisions (asset retirement obligations) related to interests in certain oil and natural gas fields in the UK North Sea in the Oil and Natural Gas Exploration and Production segment.」

「To build a resilient corporate structure capable of achieving sustainable growth even in a low oil price environment, we sold all interests in the Blane oil field in the UK North Sea and the Syncrude oil sands project in Canada, where operating costs were relatively high, and pursued a thorough implementation of selective focus and concentration.」

「After the end of the nine-month consolidated cumulative period, our consolidated subsidiary Mocal Energy Limited agreed with Suncor to sell its entire interest in a Canadian oil sands project. The assets and liabilities related to that interest in the Oil and Natural Gas Exploration and Production segment met the criteria for classification as a disposal group held for sale.」

「As part of this initiative, in July 2017 we agreed to sell our entire 17.07% interest in the Blane oil field, located in North Sea block 30/3a UPPER, to Faroe Petroleum (U.K. Limited).」

「Of the assets and liabilities classified as disposal groups held for sale at the end of the previous consolidated fiscal year, the amounts that decreased because the sales were completed during the first quarter of the current consolidated cumulative period were ¥19,044 million and ¥16,423 million, respectively. They mainly comprised property, plant and equipment (exploration and development investment accounts) and provisions (asset retirement obligations) in the Oil and Natural Gas Exploration and Production segment, and property, plant and equipment (machinery, equipment and vehicles) and borrowings in the Metals segment.」

「We promoted capital investment restraint and business restructuring through selective focus and concentration, including the partial sale of interests in the Culzean gas field and Mariner oil field in the UK North Sea.」

「In addition, our Group is currently working diligently to review its portfolio through selective focus and concentration and to optimize investment levels in order to improve earnings」

「In August, we also sold an 8.9% interest in the Mariner oil field in UK North Sea block 9/11a to Siccar Point Energy U.K. Limited.」

「In May 2016, we sold a 16% interest in the Culzean gas field in UK North Sea block 22/25a to Britoil Limited, a subsidiary of BP plc in the UK. Following the sale, the Group's interest was approximately 18%. In June of the same year, we agreed with Statoil (U.K.) Limited to sell our entire 45% interest in the UK-side P.312 16/18a block, which forms part of the Utgard gas and condensate field (formerly known as Alfa Sentral).」

「In addition to withdrawing from low-profitability projects and working to secure stable earnings, we decided to sell part of our interests in oil and gas fields in the UK North Sea, where development costs were substantial, to improve cash flow.」