Consolidated Financial Results for the Six-Month Period Ended September 30, 2019 [IFRS]Tokyo, October 30, 2019 - Mitsui & Co., Ltd. announced its consolidated financial results for the six-month period ended September
30, 2019, based on International Financial Reporting Standards ("IFRS").
Mitsui & Co., Ltd. and subsidiaries( Web Site : https://www.mitsui.com/jp/en/ )President and Chief Executive Officer : Tatsuo Yasunaga
Investor Relations Contacts : Masaya Inamuro, Investor Relations Division TEL 81-3-3285-1111
1. Consolidated financial results(1) Consolidated operating results information for the six-month period ended September 30, 2019(from April 1, 2019 to September 30, 2019)
Six-month period ended September 30,
2019

2018
%

%

Revenue

Millions of yen

3,411,236

6.2

3,213,342

34.2

Profit before income taxes

Millions of yen

318,9260.9

316,105

1.3

Profit for the period

Millions of yen

250,8596.5

235,556△5.3

Profit for the period attributable to owners of the parent

Millions of yen

234,153

5.1

222,870△6.5

Comprehensive income for the period

Millions of yen

12,031△96.9

392,625

31.2

Earnings per share attributable to owners of the parent, basic

Yen

134.71128.24

Earnings per share attributable to owners of the parent, diluted

Yen

134.61

128.14

Note:
Percentage figures for Revenue, Profit before income taxes, Profit for the period, Profit for the period attributable to owners of theparent, and Comprehensive income for the period represent changes from the previous year.
(2) Consolidated financial position information
September 30, 2019

March 31, 2019

Total assets

Millions of yen

12,096,676

11,945,779

Total equity

Millions of yen

4,474,245

4,530,308

Total equity attributable to owners of the parent

Millions of yen

4,211,441

4,263,166

Equity attributable to owners of the parent ratio

%

34.8

35.7

2. Dividend information
Year ended March 31,
2020

Year ending March
31, 2020 (Forecast)

2019

Interim dividend per share

Yen

Year-end dividend per share

Yen

40

40

Annual dividend per share

Yen

80

80

Note :
Change from the latest released dividend forecast: None4040

3. Forecast of consolidated operating results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Year ending
March 31, 2020
Profit attributable to owners of the parent
Earnings per share attributable to owners of the parent, basic

Millions of yen

450,000

Yen

258.85Note :
Change from the latest released earnings forecast: None
4. Others(1) Increase/decrease of important subsidiaries during the period : None
(2) Changes in accounting policies and accounting estimate :(i) Changes in accounting policies required by IFRS(ii) Other changes(iii) Changes in accounting estimates

Yes
None
Yes

Note :For further details please refer to page 21 "4. Condensed Consolidated Financial Statements (6) Changes in Accounting Policies andChanges in Accounting Estimates".
(3) Number of shares :September 30, 2019
Number of shares of common stock issued, including treasury stock
Number of shares of treasury stock

Average number of shares of common stock outstanding

March 31, 2019

1,742,684,906

1,742,345,627

4,038,859

4,271,539

Six-month period ended
September 30, 2019

Six-month period ended
September 30, 2018

1,738,240,957

1,737,930,577

This quarterly earnings report is not subject to quarterly review.
A Cautionary Note on Forward-Looking Statements:
This report contains forward-looking statements including those concerning future performance of Mitsui & Co., Ltd. ("Mitsui"), andthose statements are based on Mitsui’s current assumptions, expectations and beliefs in light of the information currently possessed byit. Various factors may cause Mitsui’s actual results to be materially different from any future performance expressed or implied bythese forward-looking statements.
Therefore, these statements do not constitute a guarantee by Mitsui that such future performance will be realized.
For cautionary notes with respect to forward-looking statements, please refer to the "Notice" section on page 14.
Supplementary materials and IR meetings on financial results:
Supplementary materials on financial results can be found on our web site.
We will hold an IR meeting on financial results for analysts and institutional investors on October 31, 2019.
Contents of the meeting (English and Japanese) will be posted on our web site immediately after the meeting.

Table of Contents
1. Qualitative Information(1) Operating Environment...................................................................................................................................

2(2) Results of Operations......................................................................................................................................

2(3) Financial Condition and Cash Flows..............................................................................................................

8

2. Management Policies(1) Result and Forecast for Investment and Loan Plan......................................................................................... 11(2) Forecasts for the Year Ending March 31, 2020.............................................................................................. 11(3) Profit Distribution Policy................................................................................................................................ 14
3. Other Information............................................................................................................................................. 14
4. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position............................................................................ 16(2) Condensed Consolidated Statements of Income and Comprehensive Income............................................... 18(3) Condensed Consolidated Statements of Changes in Equity........................................................................... 19(4) Condensed Consolidated Statements of Cash Flows...................................................................................... 20(5) Assumption for Going Concern...................................................................................................................... 20(6) Changes in Accounting Policies and Changes in Accounting Estimates....................................................... 21(7) Segment Information...................................................................................................................................... 23(8) The Fire Incident of Intercontinental Terminals Company LLC..................................................................... 24- 1 -1. Qualitative Information
As of the date of disclosure of this quarterly earnings report, the review procedures for quarterly financial
statements in accordance with the Financial Instruments and Exchange Act are in progress.
(1) Operating Environment
In the six-month period ended September 30, 2019, the global economy continued to exhibit slowing growth
attributable to a more moderate tempo of economic expansion in the U.S. and ongoing economic deceleration in
China.
In the U.S., although consumer spending continues to be resilient supported by a favorable environment for
employment and employee income, the impact of trade friction between the U.S. and China has started to be
noticeable particularly in the manufacturing sector, and the pace of economic expansion is expected to drop.
Meanwhile a further weakening of growth is expected in Europe, which is shrouded in uncertainties such as a
slowing of Germany’s economy and the direction of Brexit. In Japan, concern dwells on further slowdown of theeconomy as exports continue to weaken as well as the outlook of downside performance triggered by the hike inconsumption tax and the impact of typhoon damage. Among the emerging economies, China’s economy is still
expected to continue slowing partly due to the impact of trade friction with the U.S., although stimulus by its
government is providing certain underlying support. A weakening of growth is expected for both Brazil and Russia
in conjunction with slowdowns in exports and production.
Overall, one can see growing signs of stagnation throughout the global economy, and careful attention should begiven to future developments of such issues as the direction of the U.S.-China trade negotiations and the policy
trends of major countries.
(2) Results of Operations
1) Analysis of Consolidated Income Statements(Billions of Yen)

Current Period Previous Period

ChangeRevenue

3,411.2

3,213.3+197.9Gross profit

428.2

423.7

+4.5

Selling, general and administrative expenses(281.8)(274.4)

(7.4)

5.7

1.2

+4.5

(2.6)

(1.4)

(1.2)

4.8

5.3

(0.5)

10.1

(5.3)

+15.4

-

11.1

(11.1)

Interest Income

23.0

21.7

+1.3

Dividend Income

42.3

49.1

(6.8)

Interest Expense(46.9)(39.6)(7.3)

Share of Profit (Loss) of Investments Accounted for Using the Equity Method

136.1

124.7

+11.4

Income Taxes(68.1)(80.5)+12.4

Profit for the Period

250.9

235.6

+15.3

Profit for the Period Attributable to Owners of the Parent

234.2

222.9

+11.3

Gain (Loss) on Securities and Other
Investments—Net
Impairment Reversal (Loss) of Fixed
Other Income

Assets—Net(Expenses)

Gain (Loss) on Disposal or Sales of
Fixed Assets—Net
Other Income (Expense)—Net
Reversal of Provision Related to Multigrain Business

Finance Income(Costs)* May not match with the total of items due to rounding off. The same shall apply hereafter.
- 2 -Revenue
Revenue for the six-month period ended September 30, 2019 (“current period”) was ¥3,411.2 billion, an increaseof ¥197.9 billion from the corresponding six-month period of the previous year (“previous period”).
Gross Profit
Mainly the Mineral & Metal Resources Segment and the Energy Segment reported an increase, while theInnovation & Corporate Development Segment, Chemicals Segment and the Lifestyle Segment recorded a decline.
Other Income (Expenses)
Gain (Loss) on Disposal or Sales of Fixed Assets—Net
For the previous period, a gain on disposal of fixed assets was recorded in the Iron & Steel Products Segment.
Other Income (Expense)—Net
For the current period, the Innovation & Corporate Development Segment recorded a valuation profit on aderivative in relation to a put option of an investment.
Reversal of Provision Related to Multigrain Business
For the previous period, the Lifestyle Segment recorded a gain on the reversal of the provision for the withdrawal
from business.
Finance Income (Costs)
Dividend Income
Mainly the Energy Segment recorded an increase, while the Mineral & Metal Resources Segment recorded a
decline.
Share of Profit (Loss) of Investments Accounted for Using the Equity Method
Mainly the Energy Segment, the Machinery & Infrastructure Segment and the Mineral & Metal Resources
Segment recorded an increase.
Income Taxes
Income taxes for the current period were ¥68.1 billion, a decline of ¥12.4 billion from ¥80.5 billion for theprevious period mainly due to that there was a ¥11.0 billion decline in tax burden in relation to income taxes
recognized as other comprehensive income corresponding to sales of financial assets measured at FVTOCI,
including the share of Recruit Holdings Co., Ltd. The effective tax rate for the current period was 21.3%, a declineof 4.2 points from 25.5% for the previous period mainly due to a decrease in the ratio of income tax effect against
share of profit of investments accounted for using the equity method.
Profit for the Period Attributable to Owners of the Parent
Profit for the period attributable to owners of the parent was ¥234.2 billion, an increase of ¥11.3 billion from theprevious period.

- 3 -2) Operating Results by Operating Segment
The real estate business and the materials business, which were part of the Lifestyle Segment, were transferred to
the Innovation & Corporate Development Segment and Chemicals Segment, respectively, effective April 1, 2019.
In accordance with the aforementioned changes, the operating segment information for the previous period has
been restated to conform to the current period presentation.
Iron & Steel Products Segment(Billions of Yen)

Current Period Previous Period

Change

2.7

7.9

(5.2)

Gross profit

12.6

13.8

(1.2)

Profit (loss) of equity method investments

6.5

11.5

(5.0)

Dividend income

1.1

1.1

0.0

Selling, general and administrative expenses(13.6)(15.0)+1.4

Others

(3.9)

(3.5)

(0.4)

Profit for the period attributable to owners of the parent

・ Others include the following factor:- For the previous period, a one-time gain of ¥5.9 billion was recorded due to the sale of land of an affiliatedcompany.
Mineral & Metal Resources Segment(Billions of Yen)

Current Period Previous Period

Change

101.9

89.1

+12.8

Gross profit

124.8

90.6

+34.2

Profit (loss) of equity method investments

32.7

29.7

+3.0

Dividend income

5.0

14.9

(9.9)

Selling, general and administrative expenses(16.2)(16.6)+0.4

Others(44.4)(29.5)(14.9)

Profit for the period attributable to owners of the parent

・ Gross profit increased mainly due to the following factor:- Iron ore mining operations in Australia reported an increase of ¥41.6 billion mainly due to higher iron ore sales
prices.
・ Profit (loss) of equity method investments increased mainly due to the following factor:- Robe River Mining Co. Pty. Ltd reported an increase of ¥8.2 billion due to higher iron ore sales prices.
・ Dividend income decreased mainly due to the following factor:- Dividend income reported a decrease of ¥9.9 billion mainly due to decreased dividend income from Vale.
・ In addition to the above, the following factor also affected the result:- For the current period, iron ore mining operations in Australia reported a decrease of profit amounting to ¥17.4
billion mainly due to the increase of income tax caused by gross profit increase.

- 4 -Machinery & Infrastructure Segment(Billions of Yen)

Current Period Previous Period

Change

36.0

37.1

(1.1)

Gross profit

63.6

62.6

+1.0

Profit (loss) of equity method investments

46.8

43.6

+3.2

Dividend income

3.0

3.0

0.0

Selling, general and administrative expenses(64.2)(62.6)(1.6)

Others(13.2)

(9.5)

(3.7)

Profit for the period attributable to owners of the parent

・ Profit (loss) of equity method investments increased mainly due to the following factors:- For the current period, investments in gas distribution companies in Brazil reported an increase of ¥3.0 billion
reflecting the refund of service tax payments through arbitrations.
- For the previous period, deferred tax assets were recorded at an equity accounted investee due to the change ofthe investment structure in the IPP business.
・ In addition to the above, the following factor also affected results:- For the previous period, deferred tax assets were recorded at a holding company due to the change of theinvestment structure in the IPP business.
Chemicals Segment(Billions of Yen)

Current Period Previous Period

Change4.7

16.4(11.7)

Gross profit

61.0

74.4

(13.4)

Profit (loss) of equity method investments

6.8

8.0

(1.2)

Dividend income

1.6

1.7

(0.1)

Selling, general and administrative expenses(52.2)(53.1)+0.9

Others(12.5)(14.6)+2.1

Profit for the period attributable to owners of the parent

・ Gross profit declined mainly due to the following factors:- A decline of ¥3.8 billion was recorded mainly due to the price drops of main products in Novus International,
Inc.

- 5 -

Energy Segment(Billions of Yen)

Current Period Previous Period

Change

65.6

36.6

+29.0

Gross profit

75.4

71.1

+4.3

Profit (loss) of equity method investments

26.0

16.0

+10.0

Dividend income

25.9

23.0

+2.9

Selling, general and administrative expenses(22.5)(23.8)+1.3

Others(39.2)(49.7)+10.5

Profit for the period attributable to owners of the parent

・ Gross profit increased mainly due to the following factors:- Mitsui Oil Exploration Co., Ltd. reported an increase of ¥4.9 billion mainly due to increase in production anddecrease in costs.
- Mitsui & Co. Energy Trading Singapore Pte. Ltd. reported an increase of ¥4.5 billion mainly due to good
performance in the oil trading business.
- Mitsui E&P Australia Pty. Ltd. reported a decrease of ¥7.5 billion mainly due to decrease in oil production.
- AWE Pty Ltd. reported a decrease of ¥3.2 billion mainly due to increase in depreciation costs.
・ Profit of equity method investment increased mainly due to the following factor:- Mitsui E&P Mozambique Area 1 Limited reported an increase of ¥11.3 billion mainly due to the recognition ofdeferred tax assets in accordance with the Final Investment Decision for the project.
・ Dividends from six LNG projects (Sakhalin II, Qatargas 1, Abu Dhabi, Oman, Qatargas 3 and Equatorial Guinea)
were ¥24.4 billion in total, an increase of ¥1.9 billion from the previous period.
Lifestyle Segment(Billions of Yen)

Current Period Previous Period

Change

16.9

20.0

(3.1)

Gross profit

67.2

68.5

(1.3)

Profit (loss) of equity method investments

10.3

11.2

(0.9)

Dividend income

2.4

2.0

+0.4

Selling, general and administrative expenses(73.0)(66.1)(6.9)

Others

10.0

4.4

+5.6

Profit for the period attributable to owners of the parent

・ Gross profit declined mainly due to the following factor:- For the current period, suspension of drug development in the drug development fund invested through MBK
Pharma Partnering Inc. recorded a ¥3.2 billion loss in the valuation of fair value.
・ In addition to the above, the following factors also affected results:- For the current period, there was a ¥12.5 billion decline in tax burden in relation to income taxes recognized asother comprehensive income corresponding to sales of financial assets measured at FVTOCI, including theshare of Recruit Holdings Co., Ltd.
- For the previous period, Multigrain Trading AG recorded a gain of ¥11.6 billion on reversal of the provision
for the withdrawal from business.

- 6 -Innovation & Corporate Development Segment(Billions of Yen)

Current Period Previous Period

Change

1.6

9.3

(7.7)

Gross profit

23.4

41.8

(18.4)

Profit (loss) of equity method investments

7.1

5.8

+1.3

Dividend income

2.6

2.7

(0.1)

(32.3)(32.0)

(0.3)

0.8

(9.0)

+9.8

Profit for the period attributable to owners of the parent

Selling, general and administrative expenses
Others・ Gross profit declined mainly due to the following factors:- For the previous period, a ¥3.8 billion gain was recorded due to the valuation of fair value on shares in
Hutchison China MediTech Ltd., while for the current period, a ¥7.1 billion loss was recorded due to thevaluation of fair value on shares.
- A decline of ¥5.4 billion was recorded mainly due to the gain on the valuation and sales of the shares in
Mercari, Inc., for the previous period.
・ In addition to the above, the following factors also affected results:- For the current period, a valuation profit on the derivative of ¥4.1 billion was recorded in relation to a put
option of an investment.
- A ¥3.5 billion profit was recorded mainly due to the increase of deferred tax assets related to the loss ofvaluation of fair value on shares in Hutchison China Meditech, Ltd.

- 7 -(3) Financial Condition and Cash Flows
1) Financial Condition(Billions of yen)

September 30, 2019

March 31, 201912,096.7

11,945.8+150.9Current Assets

4,027.7

3,996.3+31.4

Non-current Assets

8,069.0

7,949.5+119.5Current Liabilities

2,577.2

2,740.3(163.1)

Non-current Liabilities

5,045.2

4,675.2+370.03,472.7

3,592.0(119.3)

4,211.4

4,263.2(51.8)

0.82

0.84(0.02)

Total Assets

Net Interest-bearing Debt (*)
Total Equity Attributable to Owners of the
ParentNet Debt-to-Equity Ratio (times)

Change(*)Since the current period, Interest-bearing debt is calculated by excluding lease liability from short-term
debt and long-term debt. As a result of this change, the Net Interest-bearing Debt at March 31, 2019 has
been restated.
AssetsCurrent Assets:・

Cash and cash equivalents increased by ¥196.9 billion.

・

Trade and other receivables declined by ¥181.7 billion, mainly due to a decline in trading volume in theChemicals Segment, the Lifestyle Segment, and the Energy Segment.

・

Other financial assets increased by ¥40.1 billion, mainly due to increase in trading volume of derivative tradingin the Innovation & Corporate Development Segment and the Energy Segment.

Non-current Assets:・

Investments accounted for using the equity method declined by ¥9.6 billion, mainly due to the following
factors:-

A decline of ¥106.1 billion resulting from foreign currency exchange fluctuations;-

An increase of ¥44.6 billion due to correction of Mitsui E&P Mozambique Area 1 Limited’s company
category to investments accounted for using the equity method and investment;-

An increase due to an acquisition of shares in Arctic LNG 2 Project in Russia through Japan Arctic LNG
B.V.;

-

An increase of ¥16.9 billion due to an investment in Minh Phu Seafood Joint Stock Company, a shrimp
producer and processor in Vietnam; and-An increase of ¥136.1 billion corresponding to the profit of equity method investments for the current
period, despite a decline of ¥98.8 billion due to dividends received from equity accounted investees.

・

Other investments declined by ¥136.1 billion, mainly due to the following factors:-

Fair value on financial assets measured at FVTOCI and FVTPL declined by ¥57.8 billion and ¥12.9 billion,
respectively;-

A decline of ¥45.9 billion mainly due to a partial sale of investment in Recruit Holdings Co., Ltd.; and-A decline of ¥13.9 billion resulting from foreign currency exchange fluctuations.

- 8 -

・

Property, plant and equipment increased by ¥201.4 billion, mainly due to the following factors:-

An increase of ¥257.6 billion corresponding to adoption of IFRS 16 “Leases”;-

A decline of ¥38.5 billion due to correction of Mitsui E&P Mozambique Area 1 Limited’s company
category to investments accounted for using the equity method; and-A decline of ¥14.6 billion (including foreign exchange transaction loss of ¥22.8 billion) at iron ore mining
operations in Australia.

・Intangible assets increased by ¥63.8 billion, mainly due to an increase of ¥68.4 billion for the Brazilian railbusiness restructuring.

Liabilities
Current Liabilities:
・Short-term debt increased by ¥88.6 billion. Meanwhile, the current portion of long-term debt declined by¥114.8 billion, mainly due to repayment of debt, despite the increase of reclassification to current maturities.

・

Trade and other payables declined by ¥142.1 billion, corresponding to the decline in trade and otherreceivables.

Non-current Liabilities:
・Long-term debt, less the current portion, increased by ¥389.6 billion, mainly due to adoption of IFRS 16“Leases”.

Total Equity Attributable to Owners of the Parent
・Retained earnings increased by ¥189.8 billion.

・

Other components of equity declined by ¥258.4 billion, mainly due to the following factors:-

Financial assets measured at FVTOCI declined by ¥74.3 billion; and-Foreign currency translation adjustments declined by ¥155.8 billion, mainly reflecting the appreciation of
the Japanese yen against the Australian dollar, U.S. dollar, and Brazilian real.

2) Cash Flows(Billions of yen)

Current Period Previous Period

ChangeCash flows from operating activities

326.7

161.7

+165.0Cash flows from investing activities(127.5)(248.0)+120.5

Free cash flow

199.2

(86.3)+285.5

Cash flows from financing activities

14.6(67.2)+81.8(16.9)

18.2(35.1)

196.9(135.3)+332.2

Effect of exchange rate changes on cash and cash
equivalents etc.
Change in cash and cash equivalents
Cash Flows from Operating Activities(Billions of Yen)

Current Period Previous Period

ChangeCash flows from operating activities

a

326.7

161.7

+165.0Cash flows from change in working capitalb(19.7)(154.7)+135.0Core operating cash flow

a-b

346.4

316.4

+30.0

- 9 -

・

Net cash from an increase or a decrease in working capital, or changes in operating assets and liabilities for thecurrent period was ¥19.7 billion of net cash outflow. Core operating cash flow, cash flows from operating
activities without the net cash flow from an increase or a decrease in working capital, for the current periodamounted to ¥346.4 billion.
-

Net cash inflow from dividend income, including dividends received from equity accounted investees, forthe current period totaled ¥148.0 billion, a decline of ¥16.5 billion from ¥164.5 billion for the previous
period.

-Depreciation and amortization for the current period was ¥119.5 billion, an increase of ¥31.7 billion from¥87.8 billion for the previous period.

The following table shows core operating cash flow by operating segment.
(Billions of Yen)

Current Period Previous Period

ChangeIron & Steel Products

(0.2)

(2.4)

+2.2

Mineral & Metal Resources

120.2

94.6

+25.6

Machinery & Infrastructure

41.4

31.4

+10.0

Chemicals

14.6

31.0

(16.4)

Energy

123.2

108.0

+15.2

Lifestyle

11.2

13.4

(2.2)

Innovation & Corporate Development

(3.4)

9.6

(13.0)All Other and Adjustments and Eliminations

39.4

30.8

+8.6

Consolidated Total

346.4

316.4

+30.0

Cash Flows from Investing Activities
・Net cash outflows that corresponded to investments in equity accounted investees (net of sales of investmentsin equity accounted investees) were ¥52.4 billion, mainly due to the following factors:-

An acquisition of shares in Arctic LNG 2 Project in Russia through Japan Arctic LNG B.V.; and-An investment in Minh Phu Seafood Joint Stock Company, a shrimp producer and processor in Vietnam, for¥16.9 billion.

・

Net cash inflows that corresponded to other investments (net of sales and maturities of other investments) were
¥45.8 billion, mainly due to a partial sale of investment in Recruit Holdings Co., Ltd., for ¥44.8 billion.

・

Net cash outflows that corresponded to an increase in loan receivables (net of collections of loan receivables)
were ¥5.9 billion, mainly due to the execution of loans to the IPP project in the Middle East for ¥14.3 billion.

・

Net cash outflows that corresponded to purchases of property, plant, and equipment (net of sales of thoseassets) were ¥116.9 billion, mainly due to the following factors:-

An expenditure for the oil and gas projects other than the U.S. shale gas and oil projects for a total of ¥40.9
billion; and-An expenditure for iron ore mining operations in Australia for ¥17.0 billion.

Cash Flows from Financing Activities
・Net cash inflows from net change in short-term debt were ¥98.3 billion and net cash outflows from net change
in long-term debt were ¥10.3 billion.

・The cash outflow from payments of cash dividends was ¥69.5 billion.

- 10 -

2. Management Policies(1) Result (*) and Forecast for Investment and Loan Plan
We implemented investments and loans of approximately ¥160.0 billion for core areas (including the overlap withgrowth areas of ¥10.0 billion) and approximately ¥60.0 billion for growth areas (including the overlap with coreareas of ¥10.0 billion). In addition, we made investment and loans of approximately ¥10.0 billion for other areas.
The resulting sum of investments and loans for the current period was approximately ¥220.0 billion. On the other
hand, we collected approximately ¥90.0 billion through disposal of assets and investments.
To realize “stronger focus on cash flow management; strengthen financial base,” which is one of the key initiativesof the Medium-term Management Plan, we will achieve positive free cash flow after shareholder returns during the
Medium-term Management Plan by maintaining strict investment discipline based on our cash flow management
policies.
* Excludes changes in time deposits and cash flows of some lease transactions, which had previously beenrecorded as working capital.
(2) Forecasts for the Year Ending March 31, 2020
1) Revised forecasts for the year ending March 31, 2020
<Assumption>

1st Half(Actual)2nd Half(Forecast)

Revised
Forecast

Original
Forecast

Exchange rate (JPY/USD)
Crude oil (JCC)

108.67$69/bbl106$66/bbl107.34$68/bbl110$67/bblConsolidated oil price$69/bbl$67/bbl$68/bbl$67/bbl(Billions of yen)March 31, 2020 March 31, 2020
Revised forecast Original forecast
Gross profit

860.0

890.0

ChangeDescription(30.0)

FVTPL losses, deceleration ofchemical and lifestyle tradingbusinesses

Selling, general and administrative
expenses(570.0)(580.0)

10.0

Gain on investments, fixed assets and
other

30.0

30.0

0.0

Interest expenses(50.0)(50.0)

0.0

Dividend income

90.0

80.0

10.0

270.0

260.0

10.0

Profit before income taxes

630.0

630.0

0.0

Income taxes(150.0)(140.0)(10.0)

Non-controlling Interests(30.0)(40.0)

10.0

450.0

450.0

0.0

Depreciation and amortization

250.0

250.0

0.0

Core operating cash flow

640.0

640.0

0.0

Profit (loss) of equity method
investments

Profit for the year attributable toowners of the parent

Miscellaneous

Mineral & Metal Resources and theEnergyWe assume foreign exchange rates for the six-month period ending March 31, 2020 (2nd half) will be ¥106/US$,¥72/AU$ and ¥27/BRL, while average foreign exchange rates for the six-month period ended September 30, 2019
(1st half) were ¥108.67/US$, ¥74.75/AU$ and ¥27.35/BRL. Also, we assume the annual average crude oil price- 11 -

applicable to our financial results for the year ending March 31, 2020 will be US$68/barrel, up US$1 from theoriginal assumption, based on the assumption that the crude oil price (JCC) will average US$66/barrel throughout
the six-month period ending March 31, 2020.
The revised forecast for profit for the year attributable to owners of the parent by operating segment compared tothe original forecast is as follows:Year ending
March 31, 2020
Revised Forecast

Year ending
March 31, 2020
Original Forecast

Iron & Steel Products

10.0

15.0

(5.0)

Mineral & Metal Resources

180.0

165.0

+15.0

Machinery & Infrastructure

90.0

90.0

0.0

Chemicals

20.0

30.0

(10.0)

Energy

105.0

90.0

+15.0

Good condition in crude oil and LNG trading

Lifestyle

30.0

40.0

(10.0)

FVTPL losses, deceleration of business ofgrain, sugar, and salmon in Chile

15.0

20.0

(5.0)

FVTPL losses

0

0.0

0.0

450.0

450.0

0.0

(Billions of Yen)

Innovation & Corporate
Development
All Other and Adjustments
and Eliminations
Consolidated Total

ChangeDescription
Lower steel prices in U.S.
Good condition in iron ore mining operations
in Australia

Deceleration of trading businesses, lower
methionine priceThe revised forecast for core operating cash flow by operating segment compared to the original forecast is asfollows:
Year ending
March 31, 2020
Revised Forecast

Year ending
March 31, 2020
Original Forecast

5.0

10.0

(5.0)

Mineral & Metal Resources

220.0

190.0

+30.0

Machinery & Infrastructure

95.0

105.0

(10.0)

Chemicals

40.0

50.0

(10.0)

Energy

220.0

210.0

+10.0

Good condition in crude oil and LNG trading

Lifestyle

30.0

40.0

(10.0)

FVTPL losses, deceleration of business ofgrain, sugar, and salmon in Chile

Innovation & Corporate
Development

10.0

15.0

(5.0)

FVTPL losses

20.0

20.0

0.0

640.0

640.0

0.0

(Billions of Yen)
Iron & Steel Products

All Other and Adjustments
and Eliminations
Consolidated Total- 12 -

ChangeDescription
Lower steel prices in U.S.
Good condition in iron ore mining operations
in Australia
Accumulation of one-time effects of small
items
Deceleration of trading businesses, lower
methionine price2) Key commodity prices and other parameters for the year ending March 31, 2020
The table below shows assumptions for key commodity prices and foreign exchange rates for the forecast for theyear ending March 31, 2020. The effects of movements on each commodity price and foreign exchange rates on
profit for the year attributable to owners of the parent are included in the table.
Impact on profit for the year attributable to ownersof the parent for the Year ending March 31, 2020
(Announced in April 2019)

Crude Oil/JCC
Consolidated OilPrice(*1)

U.S. Natural
Commodity

1st Half

2nd Half(Result)(Assumption)

Revised
Forecast(Announcedin
October
2019)

－

67

69

66

68

¥3.1 bn (US$1/bbl)

67

69

67

68

3.00(*3)

2.69(*4)

2.67(*3)2.68

101.0(*7)

(*6)

(*6)

193.0(*8)(*6) →(*6)¥0.7 bnGas(*2)(US$0.1/mmBtu)

Iron Ore(*5)¥2.1 bn (US$1/ton)(*6)

Coking¥0.5 bn (US$1/ton)(*6)

Thermal¥0.1 bn (US$1/ton)(*6)

95.0(*8)

(*6)

(*6)

¥0.7 bn (US$100/ton)

6,600

6,167(*10)

5,600

5,884

Coal
Copper(*9)

Forex (*11)

March 2020

Original
Forecast(Announced in
April 2019)→

USD¥2.7 bn (¥1/USD)

110108.67106107.34AUD¥1.9 bn (¥1/AUD)

77

74.75

72

73.37

BRL

¥0.3 bn (¥1/BRL)

28

27.35

27

27.18

(*1) As the crude oil price affects our consolidated results with a 0-6 month time lag, the effect of crude oil prices
on consolidated results is estimated as the consolidated oil price, which reflects this lag. For FY Mar/2020 wehave assumed that there is a 4-6 month lag for approx. 50%, a 1-3 month lag for approx. 40%, and no lag for
approx. 10%. The above sensitivities show annual impact of changes in consolidated oil price.
(*2) As Mitsui has very limited exposure to U.S. natural gas sold at Henry Hub (HH), the above sensitivities show
annual impact of changes in the weighted average sale price.
(*3) HH price of US$3.00/mmBtu is assumed for sale prices linked to the HH price for FY Mar/2020 businessplan, and US$2.67/mmBtu for FY Mar/2020 2nd half.
(*4) U.S. Gas figures for FY Mar/2020 1st half (result) are the Henry Hub Natural Gas Futures average daily
prompt month closing prices traded on NYMEX during January 2019 to June 2019.
(*5) The effect of dividend income from Vale has not been included.
(*6) Iron ore and coal price assumptions are not disclosed.
(*7) Iron ore results figures for FY Mar/2020 1st half (result) are the daily average (reference price) spot indicatedprice (Fe 62% CFR North China) recorded in several industry trade magazines from April 2019 to September2019.
(*8) Coal results figures for FY Mar/2020 1st half (result) are the quarterly average prices of representative coal
brands in Japan(US$/MT)(*9)As the copper price affects our consolidated results with a 3-month time lag, the above sensitivities show theannual impact of US$100/ton change in averages of the LME monthly average cash settlement prices for theperiod March to December 2019.
(*10)Copper results figures for FY Mar/2020 1st half (result) are the averages of the LME monthly average cash
settlement prices for the period January 2019 to June 2019 respectively.
- 13 -

(*11)Impact of currency fluctuations on reported profit for the year of overseas subsidiaries denominated in theirrespective functional currencies. Depreciation of the yen has the effect of increasing profit for the year throughthe conversion of profit (denominated in functional currencies) into yen. In the Metal Resources and Energy
business where the sales contract is in US$, the impact of currency fluctuations between the US$ and thefunctional currencies (Australian $ and Brazilian Real) and the impact of currency hedging are not included.
(3) Profit Distribution Policy
Our profit distribution policy has been resolved as follows at the board of directors through discussion in which
external directors were also involved:
・In order to increase corporate value and maximize shareholder value, we seek to maintain an optimal balance
between (a) meeting investment demand in our core and growth areas through re-investments of our retained
earnings, and (b) directly providing returns to shareholders by paying out cash dividends.

・In addition to the above, in relation to share buyback toward improving capital efficiency, we judge that suchdecision made by the board of directors in a prompt and flexible manner as needed concerning its timing andamount, while taking into consideration of the business environment such as, future investment activity trends,
free cash flow and interest-bearing debt levels, and return on equity, continues to contribute to enhancement ofcorporate value.

For the period of the Medium-term Management Plan, we have established a target minimum annual dividend
amount of ¥100 billion, based on our assessment of achievable stable core operating cash flow, with the aim of
ensuring a certain level of return to shareholders regardless of changes in the external environment. While ourprincipal intention is to steadily increase dividends through improvements in corporate performance, we will also
consider flexible ways to address shareholder compensation, provided that sufficient retained earnings is secured
for future business development.
Taking into consideration of core operating cash flow and profit for the year attributable to owners of the parent aswell as stability and continuity of the amount of dividend, for six-month period ended September 30, 2019, we
have decided to pay an interim dividend of ¥40 per share, the same amount as the corresponding six-month periodof the previous year. For the year ending March 31, 2020, we currently envisage an annual dividend of ¥80 per
share (including the interim dividend of ¥40 per share), the same amount as the year ended March 31, 2019.

3. Other Information
Notice:This flash report contains forward-looking statements about Mitsui and its consolidated subsidiaries. These forward-looking statements are based on Mitsui’s current assumptions, expectations and beliefs in light of the information
currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks,
uncertainties and other factors may cause Mitsui’s actual consolidated financial position, consolidated operating
results or consolidated cash flows to be materially different from any future consolidated financial position,
consolidated operating results or consolidated cash flows expressed or implied by these forward-looking
statements.
These risks, uncertainties and other factors include, among others, (1)risks of changes in global macroeconomic
factors, (2)market of risks of 1)commodity market risk, 2)foreign currency risk, 3)interest rate risk, 4)stock pricerisk, 5)risks regarding pension cost and defined benefit obligations, (3)credit risks, (4)risks regarding impairment
loss on fixed assets, (5)risks regarding fund procurement, (6)risks regarding deferred tax assets, (7)concentrated
risk exposures, (8)business investment risk, (9)risks regarding exploration, development and production of mineral
resources and oil and gas, (10)risks due to competition, (11)risk regarding limitation of resources on business, (12)environmental risks, (13)risks associated with laws and regulations, (14)risks regarding employee's compliance- 14 -

with laws, regulations, and internal policies, (15)risks regarding internal control, (16)risks regarding climatechanges and natural disasters, (17)risks regarding information systems and information securities, (18)risks relating
to terrorists and violent groups. For further information on the above, please refer to Mitsui’s Annual Securities
Report.
Forward-looking statements may be included in Mitsui’s Annual Securities Report and Quarterly Securities
Reports or in its other disclosure documents, press releases or website disclosures. Mitsui undertakes no obligation
to publicly update or revise any forward-looking statements.

- 15 -

4. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position(Millions of Yen)
Assets
September 30,
2019

March 31,2019

Current Assets:
Cash and cash equivalents¥

Trade and other receivables

1,153,025¥

956,107

1,622,522

1,804,227

Other financial assets

294,585

254,507

Inventories

640,929

607,675

Advance payments to suppliers

190,483

219,849

Other current assets

126,139

153,957

4,027,683

3,996,322

Investments accounted for using the equity method

2,966,081

2,975,674

Other investments

1,811,537

1,947,565

Trade and other receivables

446,516

458,809

Other financial assets

163,624

154,886

2,146,766

1,945,381

Investment property

203,883

203,102

Intangible assets

237,934

174,085

Deferred tax assets

37,27940,763

Other non-current assets

55,37349,192

8,068,993

7,949,457¥ 12,096,676¥ 11,945,779

Total current assets
Non-current Assets:

Property, plant and equipment

Total non-current assets
Total- 16 -

(Millions of Yen)
Liabilities and Equity
September 30,
2019

March 31,2019

Current Liabilities:
Short-term debt¥

Current portion of long-term debt

425,565¥

337,028

364,632

479,390

Trade and other payables

1,180,179

1,322,274

Other financial liabilities

318,930

278,472

Income tax payables

65,63147,197

Advances from customers

162,982

201,444

Provisions

24,61534,458Other current liabilities

34,70440,012

2,577,238

2,740,275

4,198,717

3,809,057

Other financial liabilities

77,28772,095Retirement benefit liabilities

56,99657,203

Provisions

212,594

212,396

Deferred tax liabilities

468,793499,756

Other non-current liabilities

30,806

24,689Total non-current liabilities

5,045,193

4,675,196

Total liabilities

7,622,431

7,415,471

Common stock

341,776

341,482

Capital surplus

403,509387,335

Retained earnings

3,268,463

3,078,655

204,854463,270(7,161)(7,576)

4,211,441

4,263,166

Non-controlling interests

262,804

267,142

Total equity

4,474,245

4,530,308¥ 12,096,676¥ 11,945,779

Total current liabilities
Non-current Liabilities:
Long-term debt, less current portion

Equity:Other components of equity
Treasury stock
Total equity attributable to owners of the parent

Total- 17 -

(2) Condensed Consolidated Statements of Income and Comprehensive Income
Condensed Consolidated Statements of Income(Millions of Yen)
Six-monthSix-month
period ended
period ended
September 30, 2019 September 30, 2018
Revenue￥

Cost
Gross Profit

3,411,236￥

3,213,342(2,983,047)(2,789,627)

428,189423,715(281,776)(274,353)

Other Income (Expenses):
Selling, general and administrative expenses
Gain (loss) on securities and other investments－net

5,655

1,227

Impairment reversal (loss) of fixed assets－net(2,596)（1,392)Gain (loss) on disposal or sales of fixed assets－net

4,815

5,262

Reversal of provision related to Multigrain business-

11,083

Other income (expense) －net

10,120(5,330)(263,782)(263,503)

Interest income

23,043

21,716

Dividend income

42,25949,115Interest expense(46,882)(39,595)

Total other income (expenses)
Finance Income (Costs):

18,42031,236

Share of Profit (Loss) of Investments Accounted for Using the Equity Method

Total finance income (costs)

136,099

124,657

Profit before Income Taxes

318,926

316,105

Income Taxes(68,067)(80,549)

Profit for the Period¥

250,859¥

235,556¥

234,153¥

222,870

Profit for the Period Attributable to:
Owners of the parent
Non-controlling interests

16,706

12,686

Condensed Consolidated Statements of Comprehensive Income(Millions of Yen)
Six-monthSix-month
period ended
period ended
September 30, 2019 September 30, 2018
Profit for the Period¥

250,859¥

235,556

Other Comprehensive Income:Items that will not be reclassified to profit or loss:
Financial assets measured at FVTOCI(58,137)

175,092

Remeasurements of defined benefit plans

(170)

1,030

Share of other comprehensive income of investments accounted for using the equity method

(753)

(185)

14,978(56,850)

Foreign currency translation adjustments(62,741)(25,126)

Cash flow hedges(3,424)(1,797)(134,175)

64,721

Income tax relating to items not reclassified
Items that may be reclassified subsequently to profit or loss:

Share of other comprehensive income of investments accounted for using the equity method
Income tax relating to items that may be reclassified
Total other comprehensive income
Comprehensive Income for the Period

5,594

184

(238,828)

157,069¥

12,031¥

392,625

¥

6,931

¥

377,809

Comprehensive Income for the Period Attributable to:
Owners of the parent
Non-controlling interests

5,100- 18 -

14,816

(3) Condensed Consolidated Statements of Changes in Equity(Millions of Yen)
Attributable to owners of the parent
CommonStock
Balance as at April 1, 2018¥

341,482

CapitalSurplus¥386,165¥

Cumulative effect of changes in accounting

Retained
Earnings

Other
Components ofEquity2,903,432¥

448,035

TreasuryStock¥(104,399)

Total¥(3,535)

policies
Balance as at April 1, 2018 after changes in

341,482

accounting policies

386,165448,035(104,399)

222,870

Other comprehensive income for the period
Comprehensive income for the period

3,974,715¥

243,408

Total
Equity¥(3,535)2,899,897

Profit for the period

Noncontrolling
Interests

222,870

4,218,123(3,535)

3,971,180

243,408

4,214,588

222,870

12,686

235,556

154,939

154,9392,130

157,069

154,939

377,809

14,816392,625

Transaction with owners:
Dividends paid to the owners of the parent(69,516)(69,516)(69,516)

Dividends paid to non-controlling interest(10,005)

shareholders
Acquisition of treasury stock
Sales of treasury stock(100)

Cancellation of treasury stock
Compensation costs related to stock options

(8)

(8)

256

15

15

(96,467)

96,467598

interest shareholders(211)

Transfer to retained earnings
Balance as at September 30, 2018

(8)
(141)

231

Equity transactions with non-controlling

11,394¥341,482¥

386,894¥(10,005)

2,968,037

－

－

231

231

387

(11,394)¥591,369

14,50014,887－¥(7,684)¥4,280,098－¥

262,719¥

4,542,817(Millions of Yen)
Attributable to owners of the parent
CommonStock
Balance as at April 1, 2019¥

341,482

CapitalSurplus¥387,335¥

Cumulative effect of changes in accounting

Retained
Earnings

Other
Components ofEquity3,078,655¥

463,270

TreasuryStock¥(7,576)

Total¥(5,306)

policies
Balance as at April 1, 2019 after changes in

341,482

accounting policies

387,335

463,270(7,576)¥

267,142¥

234,153

4,530,308(5,306)

4,257,860

234,153

Other comprehensive income for the period
Comprehensive income for the period

4,263,166

Total
Equity(5,306)

3,073,349

Profit for the period

Noncontrolling
Interests

267,142

4,525,002

234,153

16,706

250,859(227,222)(227,222)(11,606)(238,828)(227,222)

6,931

5,100

12,031

Transaction with owners:
Dividends paid to the owners of the parent(69,524)(69,524)(69,524)

Dividends paid to non-controlling interest(8,826)

shareholders
Acquisition of treasury stock
Sales of treasury stock

(6)

(6)

421

1

1

23

23

23

(294)

－

－

(133)

Compensation costs related to stock option
Compensation costs related to share294

performance-linked restricted stock
Equity transactions with non-controlling(287)

16,578interest shareholders(422)

Transfer to retained earnings
Balance as at September 30, 2019

30,772¥

341,776¥(8,826)

403,509¥3,268,463- 19 -

16,156

204,854(612)

15,544－(30,772)¥(6)¥(7,161)¥4,211,441－¥

262,804¥

4,474,245

(4) Condensed Consolidated Statements of Cash Flows(Millions of Yen)

Six-month period ended Six-month period ended
September 30, 2019
September 30, 2018
Operating Activities:
Profit for the period¥

250,859¥

235,556

Adjustments to reconcile profit for the period to cash flows
from operating activities:
Depreciation and amortization
Change in retirement benefit liabilities

119,484
931

Loss allowance

87,830
924

6,350

4,816

Reversal of provision related to Multigrain business-(11,083)(Gain) loss on securities and other investments—net(5,655)(1,227)

Impairment (reversal) loss of fixed assets—net(Gain) loss on disposal or sales of fixed assets—net

2,596(4,815)

1,392(5,262)Finance (income) costs
Income taxes(32,401)
68,067(29,376)
80,549

Share of (profit) loss of investments accounted for using the equity method
Valuation gain (loss) related to contingent considerations and others(136,099)(1,854)(124,657)
5,802

Changes in operating assets and liabilities:
Change in trade and other receivables

190,676(53,714)(40,862)(154,456)(53,076)
32,367

Other—net
Interest received(15,100)
39,715(80,322)
17,379Interest paid
Dividends received(50,695)
147,975(41,374)
164,505

Income taxes paid

(58,039)(69,372)

326,677

161,657

Net change in time deposits
Net change in investments in equity accounted investees

2,110(52,405)(5,940)(86,870)

Net change in other investments
Net change in loan receivables

45,782(5,873)(15,421)(23,647)

Net change in property, plant and equipment
Net change in investment property(116,927)(189)(104,564)(11,555)

Cash flows from investing activities(127,502)(247,997)

Change in inventories
Change in trade and other payables

Cash flows from operating activities
Investing Activities:

Financing Activities:
Net change in short-term debt

98,314

16,680Net change in long-term debt
Purchases and sales of treasury stock(10,283)(5)(13,298)(8)

Dividends paid
Transactions with non-controlling interest shareholders(69,524)(3,876)(69,516)(1,105)

14,626(67,247)

Cash flows from financing activities
Effect of Exchange Rate Changes on Cash and Cash Equivalents(16,883)

18,301

Change in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period

196,918
956,107(135,286)
1,131,380

Cash and Cash Equivalents at End of Period¥(5) Assumption for Going Concern: None

- 20 -

1,153,025¥

996,094

(6) Changes in Accounting Policies and Changes in Accounting Estimates
1) Changes in Accounting Policies
Significant accounting policies applied in the Condensed Consolidated Financial Statements for the period ended
September 30, 2019 are the same as those applied in the Consolidated Financial Statements of the previous fiscal
year except for the following.
The companies applied the following new standards for Condensed Consolidated Financial Statements from April
1, 2019.
IFRS

Title

Summaries

IFRS 16

LeasesFundamental amendment of accounting for leasetransactions

In adopting IFRS 16, the companies recognized lease liabilities in relation to leases as a lessee, which had
previously been classified as operating leases under the principles of IAS 17 “Leases”. These liabilities aremeasured at the present value discounted using the group’s incremental borrowing rate as of April 1, 2019, and arepresented as “long-term debt” (including current portion). The associated rights-of-use assets are measured either
at the carrying amount as if the Standard had been applied since the commencement date or at the amount equal to
the lease liability, and are presented as “Property, plant and equipment”.
In transitioning to IFRS 16, the practical expedient was chosen, the companies have adopted this standard tocontracts that were previously identified as leases under the principles of IAS 17 and IFRIC 4 “Determining
whether an Arrangement Contains a Lease” (hereinafter referred to as “IFRIC 4”) without reassessing whether acontract is, or contains, a lease at the date of initial application. The companies have not adopted this standard tocontracts that were not previously identified as containing a lease under the principles of IAS 17 and IFRIC 4.
After the date of initial application, if a contract is, or contains, a lease, leases are recognized as a lease liability anda corresponding right-of-use asset at the date at which the asset is available for use by the companies. Each lease
payment is allocated between the liability and finance cost. The finance cost is charged to interest expense over thelease term at a constant rate of interest on the remaining balance of the liability for each period. The right-of-use
asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Lease term
includes periods of an option to extend the lease if the lessee is reasonably certain to exercise that option and an
option to terminate the lease if the lessee is reasonably certain not to exercise that option. Note that short-termleases and leases for which the underlying asset is of low value apply exemption rules of the standards, andrecognize the lease payments associated with those leases as an expense mainly on straight-line basis over the leaseterm.
The cumulative effects due to the application of this standard were recognized on the commencement date ofadoption in accordance with the transitional arrangements, the retrospective restatement of prior periods have notbeen applied.
“Long-term debt” (including current portion) and “Property, plant and equipment” newly recognized at the date ofinitial application in the Condensed Consolidated Statement of financial position were JPY 272,321 million and
JPY 257,624 million, respectively.
In applying IFRS 16 for the first time, the companies have used the following practical expedients permitted by thestandard:
・ the use of a single discount rate to a portfolio of leases with reasonably similar characteristics
・ the reliance on assessment of whether leases are onerous applying IAS 37 “Provisions, Contingent Liabilities
and Contingent Assets” immediately before the date of initial application as an alternative to performing an
impairment review
・ the accounting for operating leases with a remaining lease term of less than 12 months as at April 1, 2019 asshort-term leases, and・ the use of hindsight in determining the lease term where the contract contains options to extend or terminate
the lease.
- 21 -

2) Changes in Accounting Estimates
The significant changes in accounting estimates in the Condensed Consolidated Financial Statements are as
follows:(Recoverability of Deferred Tax Assets in the joint venture)
The Company, together with its business partners, has made a final investment decision on the Mozambique LNG
project through Mitsui E&P Mozambique Area 1 Limited, its joint venture in the Energy Segment which owns aninterest in the LNG project.
Due to this final investment decision, the joint venture recognized deferred tax assets mainly for the exploration
expenses occurred in prior years, and gain of ¥13,158 million have been recognized in “Share of Profit (Loss) of
Investments Accounted for Using the Equity Method”.

- 22 -

(7) Segment Information
Six-month period ended September 30, 2019 (from April 1, 2019 to September 30, 2019)(Millions of Yen)
Iron & Steel
Products

Mineral &Metal
Resources

Machinery &Infrastructure

Chemicals

EnergyLifestyleInnovation &Corporate
Development

Total

Others /AdjustmentsandEliminations

Consolidated
Total

Revenue

117,867

549,654424,685

774,816

446,455

1,013,199

83,2333,409,909

1,327

3,411,236

Gross Profit

12,601

124,751

63,582

61,02575,44967,16023,368427,936253

428,189

6,495

32,70646,801

6,771

26,034

10,2987,122

136,227(128)

136,099

2,742

101,884

36,013

4,745

65,571

16,941

1,645

229,541

4,612

234,153

Share of Profit (Loss) of Investments
Accounted for Using the Equity
MethodProfit for the Period Attributable to
Owners of the parent
Core Operating Cash Flow
Total Assets at September 30, 2019(208)

120,219

41,421

14,607

123,201

11,211(3,379)307,072

39,347

346,419556,224

2,134,901

2,463,552

1,246,822

2,551,202

2,038,083

1,025,181

12,015,965

80,711

12,096,676

Six-month period ended September 30, 2018 (from April 1, 2018 to September 30, 2018) (As restated)(Millions of Yen)
Iron & Steel
Products

Mineral &Metal
Resources

Machinery &Infrastructure

Chemicals

Revenue

98,516

501,040

340,210

847,007

Gross Profit

13,826

90,581

62,61774,413

11,47929,66943,588

8,048

Others /AdjustmentsandEliminations

Consolidated
Total

LifestyleInnovation &Corporate
Development

335,725

986,385

102,056

3,210,939

2,403

3,213,342

71,076

68,46841,756

422,737

978423,715

16,004

11,218

5,844

125,850(1,193)

124,657

222,870

EnergyTotal

Share of Profit (Loss) of Investments
Accounted for Using the Equity
MethodProfit for the Period Attributable to

7,928

89,065

37,113

16,43836,61920,008

9,339

216,5106,360Core Operating Cash Flow

(2,406)

94,596

31,38431,004

107,992

13,431

9,630

285,631

30,771

316,402

Total Assets at March 31, 2019606,557

2,222,894

2,450,551

1,337,737

2,425,363

2,006,139

971,833

12,021,074(75,295)

11,945,779

Owners of the parent

Notes:1. “Others / Adjustments and Eliminations” includes of the Corporate Staff Unit which provides financing
services and operations services to the companies and affiliated companies. Total assets of “Others /Adjustments and Eliminations” at March 31, 2019 and September 30, 2019 includes cash, cash
equivalents and time deposits related to financing activities, and assets of the Corporate Staff Unit andcertain subsidiaries related to the above services amounting to ¥ 7,044,713 million and ¥ 7,006,178
million, respectively.
2. Transfers between reportable segments are made at cost plus a markup.
3. Profit for the Period Attributable to Owners of the parent of “Others /Adjustments and Eliminations”
includes income and expense items that are not allocated to specific reportable segments, andeliminations of intersegment transactions.
4. Total assets of “Others / Adjustments and Eliminations” at March 31, 2019 and September 30, 2019
includes elimination of receivables and payables between segments amounting to ¥ 7,120,008 millionand ¥ 6,925,467 million, respectively.
5. Core Operating Cash Flow is calculated by eliminating the sum of the “Changes in Operating Assets andLiabilities” from “Cash Flows from Operating Activities” as presented in the Condensed Consolidated
Statements of Cash Flows.
6. Due to the organizational restructuring with the aim of further strengthening of business, materials

business and real estate business which were formerly included in "Lifestyle" segment are included in"Chemicals" segment and "Innovation & Corporate Development" segment respectively, since the threemonth period ended June 30, 2019. In accordance with these changes, the segment information for thesix-month period ended September 30, 2018 has been restated to conform to the current period
presentation.

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(8) The Fire Incident of Intercontinental Terminals Company LLC
On March 17, 2019 (US time) a fire began at the Deer Park tank terminal, of Intercontinental Terminals Company
LLC (“ITC”), a wholly owned U.S. subsidiary of Mitsui & Co., Ltd. The Deer Park tank terminal is located in theoutskirts of Houston, Texas. The fire completely destroyed, or partially damaged, 15 out of 242 tanks and its
surrounding facilities, and was completely extinguished by March 22, 2019 (US time). ITC has resumed operation
after discussions with relevant authorities. The cause of the fire is still under investigation.
The outstanding balance of provision related to this incident is ¥14,924 million for the year ended March 31, 2019.
Most of the related costs have been paid out in the six-month period ended September 30, 2019, and theoutstanding balance of provision as of September 30, 2019 is immaterial. Further, although ITC recognized
additional costs related to this incident in the six-month period ended September 30, 2019, together with insurance
benefits that were also booked, the net amount is immaterial.
There are multiple lawsuits that have been brought against ITC in relation to this incident. These lawsuits are at theearly stages and the ultimate outcome of these lawsuits is not expected to have significant impact on ourconsolidated financial position, operating results and cash flow.

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