Consolidated Financial Results

for Half-year of Fiscal Year Ended March 31, 2024

November 9, 2023

Note: This document has been translated from Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Table of Contents

  • Consolidated Financial Results for Half-year of FYE Mar. 2024
    • Highlights
    • Summary of Results
    • Summary of Balance Sheet
    • Summary of Cash Flow
    • Summary of Segment Results
  • FYE Mar. 2024 Forecast
    • Summary of FYE Mar. 2024 Forecast
    • Summary of FYE Mar. 2024 Forecast by Segment
    • FYE Mar. 2024 Forecast Progress
  • Topics
    • Status of exercise of stock acquisition rights
    • Introduction of New Orders
  • Appendix
    • CAPEX ・ R&D ・ Employees
    • Marine Engines

Page

3

4

5

6

7-10

11

12

13

14

15

16

17

2

Highlights

  • Starting year with new company name 'MITSUI E&S Co.,Ltd.': Sales and Profits increased with stable surplus in the first half of fiscal year.

Half-year of

FYE Mar. 2024

Results

FYE Mar. 2024

Forecast

 New Orders

154.8 Billion yen

（ QoQ

）

 Net Sales

135.5 Billion yen

（ QoQ

）

 Operating Income

6.7 Billion yen

（ QoQ

）

◆ New Orders

320 Billion yen (compared to May 15, 2023

)

◆ Net Sales

280 Billion yen (compared to May 15, 2023

)

◆ Operating Income

12 Billion yen (compared to May 15, 2023

)

Topics

  • Profit Forecast revised upward
  • Status of exercise of stock acquisition rights
  • Introduction of New Orders

3

Summary of Results

(JPY: Billion)

FYE Mar.

FYE Mar.

Var.

2023 2Q

2024 2Q

New Orders

155.6

154.8

(0.7)

Net Sales

111.7

135.5

+23.8

Operating Income

(8.5)

6.7

+15.2

(Loss)

margin

(7.6%)

4.9%

-

Ordinary Income

(1.5)

5.9

+7.4

(Loss)

margin

(1.3%)

4.4%

-

Profit attributable

1.4

4.6

+3.2

to owners of parent

＜Average FX＞

FYE Mar.

FYE Mar.

2023 2Q

2024 2Q

USD/JPY

140.94 Yen

146.95 Yen

  • New Orders

Although removal of Ship segment from consolidated subsidiary caused decrease by

8.4 billion yen, overall result was almost same level QoQ due to recovery in New Orders of Logistics Systems segment.

  • Net Sales

Although removal of Ship segment from consolidated subsidiary caused decrease by 6.6 billion yen, overall net sales increased QoQ due to good business circumstances of Marine Propulsion Systems segment.

  • Operating Income(Loss)

Impact of foreign exchange loss by project in Indonesia was minimized. Moreover, profit in all segments improved QoQ.

4

Summary of Balance Sheet

  • Equity increased due to accumulation of profits and exercise of stock acquisition

rights.

（JPY: Billion）

FYE Mar.

FYE Mar.

Var.

2023 ４Ｑ

2024 2Ｑ

Total Assets

440.0

456.5

+16.5

（Cash and deposit）

45.8

40.6

(5.2)

（Trade receivables）

46.8

56.9

+10.1

Increase due to steady New Orders.

（Fixed assets）

131.3

133.2

+1.9

（Investment securities）

68.8

72.6

+3.8

Total Liabilities

329.3

332.2

+2.9

（Trade payables）

54.9

66.4

+11.5

Increase mainly due to new consolidation of Mitsui E&S DU.

(Advances from customers）

25.3

35.1

+9.8

Increase mainly due to New Orders for Marine Engines.

（Provision for losses on

14.0

9.6

(4.4)

construction contracts）

（Debt with interest）

141.5

166.0

+24.5

Increase mainly due to expenditures for project in Indonesia.

(Others)

54.5

16.1

(38.4)

Decrease in accrued expenses mainly due to progress in

cost settlement of project in Indonesia.

Total Net Assets

110.7

124.3

+13.6

（Equity）

106.4

120.0

+13.6

Increase due to accumulation of retained earnings and

exercise of stock acquisition rights.

Capital-to-asset ratio

24.2%

26.3%

-

Net D/E Ratio

0.9

1.0

-

5

Summary of Cash Flow

  • Operating cash flow was negative due to progress in cost settlement of project in Indonesia.

（JPY: Billion）

FYE Mar.

FYE Mar.

Var.

2023 2Ｑ

2024 2Ｑ

Decrease in accrued expenses mainly due to

Operating CF

(10.0)

(32.9)

(22.9) temporary expenditures for a project in

Indonesia.

Investing CF

1.3

(1.9)

(3.3)

Free CF

(8.7)

(34.8)

(26.1)

Increase in borrowings mainly due to

Financial CF

(3.2)

26.8

+30.1 temporary expenditures for a project in

Indonesia.

6

Summary of Segment Results

  • Profits increased in all segments QoQ and proceed to stable profitability.

（JPY: Billion）

New Orders

Net Sales

Operating

Income (Loss)

FYE Mar.

FYE Mar.

Var.

FYE Mar.

FYE Mar.

Var.

FYE Mar.

FYE Mar.

Var.

2023

2024

2023

2024

2023

2024

2Q

2Q

2Q

2Q

2Q

2Q

New Business

18.5

22.3

+3.8

13.0

18.0

+5.0

1.0

2.0

+0.9

Development

Marine

82.1

72.3

(9.8)

43.3

64.0

+20.7

1.0

3.8

+2.8

Propulsion

Systems

Logistics

13.6

35.0

+21.4

19.1

17.2

(1.8)

(0.3)

0.3

+0.6

Systems

Peripheral

30.1

25.2

(4.9)

23.9

33.6

+9.7

(0.7)

1.4

+2.1

Business

Others

11.3

0.1

(11.2)

12.5

2.7

(9.8)

(9.5)

(0.8)

+8.7

Total

155.6

154.8

(0.7)

111.7

135.5

+23.8

(8.5)

6.7

+15.2

7

New Business

Main business:Advanced Machinery(robotics), Industrial

Development

Machinery(compressors, rotary machinery), After-sales Services

  • New Orders:QoQ +3.8 Billion yen

FYE Mar. 2023 FYE Mar. 2024

（JPY:Billion）

42.2 40.0

Increased QoQ due to new projects for decarbonization, and stable demand for engines for construction machines and industrial machines for chemical plant renewal work.

8.2

18.5 22.3

12.4

1Q 2Q4Q(Forecast)

Net Sales:QoQ +5.0 Billion yen

Increased QoQ due to New Orders received in the previous fiscal year and good business circumstance of spare parts for Industrial Machinery.

6.1 8.2

34.9

13.0 18.0

30.0

  • Operating Income (Loss) :QoQ ＋0.9 Billion yen

Increased QoQ due to a rise in sales of Industrial Machinery and stable performance of After-sales Service business.

1Q 2Q4Q(Forecast)

4.3

3.0

2.0

0.4

0.4

1.0

1Q

2Q

4Q(Forecast)

8

Marine Propulsion Systems Main business:Marine Engines, After-sales Services

  • New Orders:QoQ (9.8) Billion yen

Since demand of new shipbuilding is increasing in the background of forthcoming environmental regulations, quotation for Marine Engines are increasing. However New Orders decreased QoQ due to some postponed projects to second half of fiscal year.

FYE Mar. 2023 FYE Mar. 2024

65.7 82.1 72.3

46.0

（JPY:Billion）

160.0

139.6

1Q 2Q4Q(Forecast)

Net Sales:QoQ +20.7 Billion yen

Increased QoQ due to orders of Marine Engines recovered in the previous fiscal year and stable After-sales Services business.

21.2 29.5

130.0

97.7

64.0

43.3

1Q 2Q4Q(Forecast)

3.85.0 upwardrevised

Increased QoQ. Business circumstance of Marine Engines is improving despite of negative impact caused by a rising price of materials and equipment. After-sales Services business remain

2.6

1.8

1.0

(0.3)

4.0

stable.

1Q 2Q4Q(Forecast)

9

Logistics Systems Main business:Container Cranes, After-sales Services

  • New Orders:QoQ +21.4 Billion yen

Increased QoQ due to new large project in Vietnam. The demands for port development in Southeast Asia and other emerging

FYE Mar. 2023 FYE Mar. 2024

35.0

20.4

（JPY:Billion）

49.4 50.0

countries remain stable.

8.2

13.6

Net Sales:QoQ (1.8) Billion yen

Decreased QoQ. Deliveries of many projects are scheduled in the second half of fiscal year and the progress of large projects was slow in this term.

1Q 2Q 4Q(Forecast)

50.0

41.7

19.1 17.2

8.5 7.4

  • Operating Income (Loss) :QoQ ＋0.6 Billion yen

Increased QoQ mainly due to the effects of cost reduction measures.

1Q 2Q 4Q(Forecast)

2.0 revised

1.4

upward

0.3

1.0

(1.0)(0.5)

(0.3)

1Q

2Q

4Q(Forecast)

10

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Disclaimer

MES - Mitsui Engineering & Shipbuilding Co. Ltd. published this content on 09 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 13:40:20 UTC.