Consolidated Financial Statements

MITSUI E&S Co., Ltd.

and Consolidated Subsidiaries

For the Years ended March 31,

2023 and 2022

Together with Independent

Auditor's Report

Contents

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Balance Sheets ·······························································································

1

Consolidated Statements of Operations ···················································································

3

Consolidated Statements of Comprehensive Income ···································································

4

Consolidated Statements of Changes in Net Assets ·····································································

5

Consolidated Statements of Cash Flows ··················································································

6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

··································································································································· 8

INDEPENDENT AUDITOR'S REPORT

··································································································································· 55

Definition of Abbreviations

Abbreviations

the Group

the Company

2022

2023

Definition

MITSUI E&S Co., Ltd. and its consolidated subsidiaries (MITSUI E&S Group)

MITSUI E&S Co., Ltd. on a standalone basis

Fiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

Exchange Rate During the Period

Currency

U.S. Dollar

2023

133.53 yen

Consolidated Financial Statements

Consolidated Balance Sheets

As of March 31, 2023 and 2022

ASSETS

Japanese Yen

U.S.Dollars

(millions)

(thousands)(Note 1(a))

Current Assets

2023

2022

2023

Cash and time deposits (Notes 1(q) , 2(f) and 6)

¥

45,804

¥

51,762

$

343,024

Receivables

Trade, and contract assets (Note 2(b))

81,851

78,564

612,978

Others

6,586

5,900

49,322

Allowance for doubtful accounts

(354)

(214)

(2,651)

Merchandise and finished goods

6,096

5,762

45,653

Raw materials and supplies

6,137

4,183

45,960

Work in progress

46,799

36,562

350,476

Others

19,710

19,303

147,607

Total current assets

212,629

201,822

1,592,369

Property, Plant and Equipment

Land (Notes 2(e) and 2(f))

68,544

70,078

513,323

Buildings and structures (Note 2(c) and 2(f))

115,911

130,455

868,052

Machinery, equipment and vehicles (Note 2(c))

82,462

87,110

617,554

Lease assets (Note 2(c))

12,747

12,061

95,462

Construction in progress

3,166

2,160

23,710

282,830

301,864

2,118,101

Less accumulated depreciation

(167,063)

(183,525)

(1,251,127)

Net property, plant and equipment (Note 2(g))

115,767

118,339

866,974

Intangible Assets

Intangible assets

15,503

16,042

116,101

Investments and Other Assets

Investment securities (Notes 2(a) , 2(f) and 9)

68,802

43,280

515,255

Long-term loans (Note 2(f))

2,126

2,130

15,921

Net defined benefit assets (Note 11)

9,957

10,917

74,567

Deferred tax assets (Note 13)

2,984

2,670

22,347

Others (Note 2(a))

12,477

14,249

93,440

Allowance for doubtful accounts

(285)

(299)

(2,134)

Total investments and other assets

96,061

72,947

719,396

Total assets

¥

439,960

¥

409,150

$

3,294,840

The accompanying notes to the consolidated financial statements are integral parts of these statements.

- 1 -

LIABILITIES AND NET ASSETS

Japanese Yen

U.S.Dollars

(millions)

(thousands)(Note 1(a))

Current Liabilities

2023

2022

2023

Short-term borrowings (Notes 2(h), 2(i) and 21)

¥

115,246

¥

94,615

$

863,072

Current portion of long-term indebtedness (Notes 2(f) , 2(i) and 21)

14,375

23,101

107,654

Lease obligations

1,863

1,808

13,952

Trade payables

54,939

48,706

411,435

Contract liabilities

25,300

30,901

189,470

Accrued expenses

39,312

4,120

294,406

Accrued income taxes (Note 13)

797

1,381

5,969

Provision for losses on construction contracts (Note 1(l))

14,026

59,608

105,040

Provision for construction warranties (Note 1(k))

2,403

2,780

17,996

Provision for bonuses (Note 1(m))

4,059

4,479

30,398

Others

14,660

17,012

109,788

Total current liabilities

286,980

288,511

2,149,180

Long-term Liabilities

Long-term indebtedness (Notes 2(f), 2(i) and 21)

11,928

24,658

89,328

Lease obligations

7,061

6,497

52,880

Provision for business restructuring (Note 1(n))

853

1,357

6,388

Net defined benefit liabilities (Note 11)

5,049

5,866

37,812

Deferred tax liabilities

On revaluation reserve for land (Notes 2(e) and 13)

12,242

12,242

91,680

Others (Note 13)

1,846

3,177

13,825

Asset retirement obligations

1,729

2,219

12,948

Others

1,586

1,674

11,877

Total long-term liabilities

42,294

57,690

316,738

Total liabilities

329,274

346,201

2,465,918

Net Assets (Note 19)

Share capital

3,830

44,385

28,683

Capital surplus

10,553

18,132

79,031

Retained earnings

42,292

(33,278)

316,723

Treasury stock

(4,633)

(4,664)

(34,696)

Net unrealized holding gains on securities (Note 9)

48

615

359

Unrealized gains (losses) on hedging derivatives

8,310

(5,960)

62,233

Revaluation reserve for land (Note 2(e))

27,601

27,603

206,702

Foreign currency translation adjustments

10,692

2,120

80,072

Remeasurements of defined benefit plans (Note 11)

7,711

8,138

57,747

Subscription rights to shares

133

124

996

Non-controlling interests

4,149

5,734

31,072

Total net assets

110,686

62,949

828,922

Total liabilities and net assets

¥

439,960

¥

409,150

$

3,294,840

- 2 -

Consolidated Statements of Operations

For the Years Ended March 31, 2023 and 2022

Japanese Yen

U.S.Dollars

(millions)

(thousands)(Note 1(a))

2023

2022

2023

Net Sales (Note 3(a))

¥

262,301

¥

579,364

$

1,964,360

Cost of Sales (Note 3(c),(g) and (h))

225,376

550,611

1,687,830

Gross Profit

36,925

28,753

276,530

Selling, general and administrative expenses (Note 3(b),(c))

27,549

38,783

206,314

Operating income (loss)

9,376

(10,030)

70,216

Other Income (Expenses)

Interest and dividend income

597

3,906

4,471

Interest expenses

(2,882)

(2,713)

(21,583)

Commission expenses

(2,420)

(3,821)

(18,123)

Share of profit (loss) of entities accounted for using equity method

3,811

(14,646)

28,540

Foreign currency exchange gains

4,610

1,212

34,525

Gain on disposal of non-current assets (Note 3(d))

185

2,356

1,385

Gain on sales of investment securities (Note 9)

686

41

5,137

Gain on sales of subsidiaries and affiliates' stocks

2,836

6,583

21,239

Insurance income

1,337

-

10,013

Recovery of extraordinary repair expenses (Note 3(i))

-

1,316

-

Gain on return of assets from retirement benefit trust

-

1,224

-

Loss on disposal of non-current assets (Note 3(e))

(173)

(381)

(1,296)

Loss on impairment of non-current assets (Note 3(f))

-

(83)

-

Loss on sales of investment securities (Note 9)

-

(137)

-

Loss on sales of subsidiaries and affiliates' stocks

(274)

(2,421)

(2,052)

Loss due to transportation accidents

(1,041)

-

(7,796)

Loss on liquidation of business

(108)

-

(809)

Others, net

(560)

350

(4,194)

Total

6,604

(7,214)

49,457

Profit (loss) before income taxes

15,980

(17,244)

119,673

Income Taxes (Note 13)

Current

1,371

3,374

10,267

Deferred

(1,011)

4,501

(7,571)

360

7,875

2,696

Profit (loss)

15,620

(25,119)

116,977

Profit (loss) attributable to non-controlling interests

66

(3,294)

494

Profit (loss) attributable to owners of parent

¥

15,554

¥

(21,825)

$

116,483

- 3 -

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MES - Mitsui Engineering & Shipbuilding Co. Ltd. published this content on 14 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2023 07:46:07 UTC.