Consolidated Financial Results for the Six-Month Period Ended September 30, 2020 [IFRS]Tokyo, October 30, 2020 - Mitsui & Co., Ltd. announced its consolidated financial results for the six-month period ended September
30, 2020, 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, 2020
(from April 1, 2020 to September 30, 2020)
Six-month period ended September 30,
2020

2019
%

%

Revenue

Millions of yen

3,043,604(10.8)

3,411,236

6.2

Profit before income taxes

Millions of yen

184,693(42.1)

318,926

0.9

Profit for the period

Millions of yen

117,263(53.3)

250,859

6.5

Profit for the period attributable to owners of the parent

Millions of yen

110,024(53.0)

234,153

5.1

Comprehensive income for the period

Millions of yen

242,662

1,917.0

12,031(96.9)

Earnings per share attributable to owners of the parent, basic

Yen

65.16

134.71

Earnings per share attributable to owners of the parent, diluted

Yen

65.13

134.61

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, 2020

March 31, 2020

Total assets

Millions of yen

11,508,898

11,806,292

Total equity

Millions of yen

4,179,963

4,060,932

Total equity attributable to owners of the parent

Millions of yen

3,934,146

3,817,677

Equity attributable to owners of the parent ratio

%

34.2

32.3

2. Dividend information
Year ended March 31,
2021

Year ending March
31, 2021 (Forecast)

2020

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, 2021 (from April 1, 2020 to March 31, 2021)
Year ending
March 31, 2021
Profit attributable to owners of the parent
Earnings per share attributable to owners of the parent, basic

Millions of yen

180,000

Yen

106.87Note :
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 23 "4. Condensed Consolidated Financial Statements (6) Changes in Accounting Policies andChanges in Accounting Estimates".
(3) Number of shares :September 30, 2020
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, 2020

1,717,104,808

1,742,684,906

37,759,251

35,184,567

Six-month period ended
September 30, 2020

Six-month period ended
September 30, 2019

1,688,466,849

1,738,240,957

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 17.
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 November 2, 2020.
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.............................................................................................................

9

2. Management Policies(1) Result and Forecast for Investment and Loan Plan....................................................................................... 13(2) Forecasts for the Year Ending March 31, 2021............................................................................................. 13(3) Profit Distribution Policy.............................................................................................................................. 16
3. Other Information............................................................................................................................................. 17
4. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position........................................................................... 18(2) Condensed Consolidated Statements of Income and Comprehensive Income.............................................. 20(3) Condensed Consolidated Statements of Changes in Equity........................................................................... 21(4) Condensed Consolidated Statements of Cash Flows..................................................................................... 22(5) Assumption for Going Concern..................................................................................................................... 23(6) Changes in Accounting Policies and Changes in Accounting Estimates....................................................... 23(7) Changes in Presentation................................................................................................................................. 24(8) Segment Information...................................................................................................................................... 25(9) The Fire Incident of Intercontinental Terminals Company LLC................................................................... 26(10) Taxation on Capital Gain in India.................................................................................................................. 26- 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, 2020, even amid the continuing spread of infections of COVID-19,
the global economy appears to have made it out of its worst period and there are signs of improvement due to theresumption of economic activities and the effects of economic measures in various countries.
In the U.S., although employment and consumer spending have improved mainly due to the resumption of
economic activities, there are concerns that the pace of improvement may be slowing due to a delay in enacting
additional economic measures and an increase in the number of infected people. In Europe, the economy has been
picking up as a result of resuming economic activities as well. However, there are signs that infections are
spreading again in countries such as UK, Spain, and France, and there are concerns that the pace of improvement in
employment and consumer spending is slowing. In Japan, although consumer spending and exports showed signsof improvement due to the effects of economic measures and the recovery in demand in China and other countries,
the tempo of future improvements is expected to be gradual. Despite the slow recovery in consumption in China,
manufacturing activities are recovering quickly and exports and public investment appear to be driving theimprovement in the economy. Although infections have continued to spread in Russia and Brazil, the economies
are gradually picking up against the backdrop of a recovery in the price of crude oil and other factors.
The global economy is expected to continue to pick up under the assumption that the spread of infections willcontinue to be controlled by appropriate measures by various governments. However, the pace of improvement is
expected to be gradual and it will likely take until next year and thereafter to make up for the decline this year.
(2) Results of Operations
1) Analysis of Consolidated Income Statements(Billions of Yen)

Current Period Previous Period

ChangeRevenue

3,043.6

3,411.2(367.6)Gross profit

367.8

428.2

(60.4)

Selling, general and administrative expenses(286.8)(281.8)

(5.0)

9.0

5.7

+3.3

(5.3)

(2.6)

(2.7)

(0.2)

4.8

(5.0)

Other Income (Expense)—Net

(1.0)

10.1

(11.1)

Interest Income

12.3

23.0

(10.7)

Dividend Income

35.1

42.3

(7.2)

Interest Expense(28.4)(46.9)+18.5

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

82.0

136.1

(54.1)

Income Taxes(67.4)(68.1)+0.7

Profit for the Period

117.3

250.9

(133.6)

Profit for the Period Attributable to Owners of the Parent

110.0

234.2

(124.2)Gain (Loss) on Securities and Other
Investments—Net
Other Income(Expenses)

Impairment Reversal (Loss) of Fixed
Assets—Net
Gain (Loss) on Disposal or Sales of Fixed
Assets—Net

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, 2021 (“current period”) was ¥3,043.6 billion, a decrease of¥367.6 billion from ¥3,411.2 billion for the corresponding six-month period of the previous year (“previous
period”).
Gross Profit
Mainly the Energy Segment, the Mineral & Metal Resources Segment, the Machinery & Infrastructure Segment
and the Lifestyle Segment recorded a decrease, while the Innovation & Corporate Development Segment recorded
an increase.
Selling, general and administrative expenses
Mainly the Mineral & Resources Segment and the Machinery & Infrastructure Segment recorded a cost increase.
Other Income (Expenses)
Gain (Loss) on Securities and Other Investments—Net
For the current period, a gain on sale of securities was recorded in the Machinery & Infrastructure Segment.
Impairment Reversal (Loss) of Fixed Assets—Net
For the current period, an impairment loss was recorded in the Machinery & Infrastructure Segment.
Other Income (Expense)—Net
For the current period, mainly the Energy Segment recorded derivative related profits and foreign exchange related
profits and the Chemicals Segment recorded insurance proceeds in the business in North America. Also, theMineral & Metal Resources Segment recorded foreign exchange related losses.
For the previous period, the Innovation & Corporate Development Segment recorded a valuation profit on aderivative in relation to a put option of an investment.
Finance Income (Costs)
Dividend Income
Mainly the Energy Segment recorded a decrease, while the Mineral & Metal Resources Segment recorded anincrease.
Share of Profit (Loss) of Investments Accounted for Using the Equity Method
Mainly the Energy Segment, the Lifestyle Segment, the Iron & Steel Products Segment, the Machinery &Infrastructure Segment and the Mineral & Metal Resources Segment recorded a decrease.
Income Taxes
Income taxes for the current period were ¥67.4 billion, a decline of ¥0.7 billion from ¥68.1 billion for the previous
period. Mainly due 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., for the previous period, there was a¥11.0 billion decline in tax burden.
The effective tax rate for the current period was 36.5%, an increase of 15.2 points from 21.3% for the previous
period. The major factors for the increase were an increase of a valuation allowance against a deferred tax asset andan increase in the tax burden due to resource-related high rate taxes in the Energy Segment.

- 3 -Profit for the Period Attributable to Owners of the Parent
Impacts caused by a decrease in demand and a fluctuation in commodity prices due to the effect of the COVID-19
pandemic were included. As a result, profit for the period attributable to owners of the parent was ¥110.0 billion, adecrease of ¥124.2 billion from the previous period.
2) Operating Results by Operating Segment
The business of the infrastructure of next-generation electric power, which was a part of the Machinery &Infrastructure Segment, was transferred to the Energy Segment, effective April 1, 2020. In accordance with theaforementioned changes, the operating segment information for the previous period has been restated to conform tocurrent period presentation.
Iron & Steel Products Segment(Billions of Yen)

Current Period Previous Period

Change

(5.8)

2.7

(8.5)

Gross profit

9.6

12.6

(3.0)

Profit (loss) of equity method investments

(4.5)

6.5

(11.0)

Dividend income

0.8

1.1

(0.3)

Selling, general and administrative expenses(11.6)(13.6)+2.0

Others

(0.1)

(3.9)

+3.8

Profit for the period attributable to owners of the parent

・ Profit (loss) of equity method investments decreased mainly due to the following factor:- For the current period, Gestamp companies reported a decrease of ¥8.7 billion mainly due to the lower
operating time caused by lower automotive production, the impact of foreign exchange fluctuations, and onetime cost related to the structural transformation.
Mineral & Metal Resources Segment(Billions of Yen)

Current Period Previous Period

Change

71.3

101.9

(30.6)

Gross profit

100.6

124.8

(24.2)

Profit (loss) of equity method investments

30.2

32.7

(2.5)

Dividend income

20.2

5.0

+15.2

Selling, general and administrative expenses(33.2)(16.2)(17.0)

Others(46.5)(44.4)(2.1)

Profit for the period attributable to owners of the parent

・ Gross profit decreased mainly due to the following factor:- Coal mining operations in Australia recorded a decrease of ¥25.3 billion mainly due to lower coal sales prices.
・ Profit (loss) of equity method investments decreased mainly due to the following factor:- Coal mining operations in Australia recorded a decrease of profit mainly due to lower coal sales price.
・ Dividend income increased mainly due to the following factor:- For the current period, ¥13.8 billion dividends from Vale S.A. was recorded.
・ Selling, general and administrative expenses increased mainly due to the following factor:- For the current period, an impairment loss of ¥19.7 billion for doubtful debt was recorded, reflecting therevisions to various assumptions regarding the Moatize mine business in Mozambique.
・ In addition to the above, the following factor also affected results:- Coal mining operations in Australia recorded a decrease of ¥4.6 billion mainly due to foreign exchange related
losses.
- 4 -Energy Segment(Billions of Yen)

Current Period Previous Period

Change

(3.7)

64.6

(68.3)

Gross profit

33.3

75.2

(41.9)

Profit (loss) of equity method investments

11.0

25.8

(14.8)

Dividend income

4.3

25.9

(21.6)

Selling, general and administrative expenses(23.5)(23.1)(0.4)

Others(28.8)(39.2)+10.4

Profit for the period attributable to owners of the parent

・ Gross profit decreased mainly due to the following factors:- Mitsui Oil Exploration Co., Ltd. recorded a decrease of ¥27.7 billion mainly due to decline in production andlower oil and gas prices.
- Business division at the Headquarters recorded a decrease mainly due to underperformance in LNG tradingbusiness.
- Mitsui E&P USA LLC recorded a decrease of ¥4.2 billion mainly due to lower oil and gas prices.
- MEP Texas Holdings LLC recorded a decrease of ¥3.8 billion mainly due to lower oil and gas prices anddecline in production.
- Mitsui E&P Italia A S.r.l recorded a decrease of ¥3.7 billion mainly due to an increase in cost.
・ Profit of equity method investment decreased mainly due to the following factors:- Mitsui E&P Mozambique Area 1 Limited recorded a decrease of ¥11.6 billion mainly due to the recognition ofdeferred tax assets in accordance with the Final Investment Decision for the project in the previous period.
- Japan Australia LNG (MIMI) Pty. Ltd recorded a decrease mainly due to lower oil and gas prices.
- Mitsui & Co. LNG Investment USA, Inc. recorded an increase of ¥3.4 billion due to the commencement ofcommercial operation at Cameron LNG project.
・ Dividends from six LNG projects (Qatargas 1, Oman, Qatargas 3, Sakhalin II, Abu Dhabi and Equatorial
Guinea) were ¥4.0 billion in total, a decrease of ¥20.4 billion from the previous period.
・ In addition to the above, the following factor also affected results.
- Mitsui Oil Exploration Co., Ltd. recorded an increase of ¥4.0 billion due to derivative related profits at its
overseas subsidiary and foreign exchange related profits.

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

Current Period Previous Period

Change23.4

37.0(13.6)

Gross profit

48.3

63.8

(15.5)

Profit (loss) of equity method investments

41.8

47.0

(5.2)

Dividend income

2.2

3.0

(0.8)

Selling, general and administrative expenses(61.3)(63.7)+2.4

Others(7.6)(13.1)+5.5

Profit for the period attributable to owners of the parent

・ Gross profit decreased mainly due to the following factor:- For the current period, the subsidiaries in relation to automobile and construction & industrial machinery
business recorded a decrease due to the effect of the COVID-19 pandemic.
・ Profit (loss) of equity method investments decreased mainly due to the following factor:- Investments in gas distribution companies in Brazil recorded a decrease of ¥4.6 billion because of demand
decline due to the effect of the COVID-19 pandemic and the depreciation of Brazilian real for the current
period, while the refund of service tax payments through arbitrations led to an increase in the previous period.
・ Selling, general and administrative expenses increased due to the following factor, while overall, selling, generaland administrative expenses decreased in the Machinery & Infrastructure Segment.
- For the current period, an impairment loss of ¥4.9 billion for doubtful debt was recorded, reflecting therevisions to various assumptions regarding the Moatize mine business in Mozambique.
・ In addition to the above, the following factors also affected results:- For the current period, a gain on sale of IPP business in North America was recorded.
- For the current period, ¥4.7 billion impairment loss was recorded in the rolling stock leasing business.
Chemicals Segment(Billions of Yen)

Current Period Previous Period

Change

10.7

4.7

+6.0

Gross profit

58.5

61.0

(2.5)

Profit (loss) of equity method investments

2.6

6.8

(4.2)

Dividend income

1.3

1.6

(0.3)

Selling, general and administrative expenses(47.7)(52.2)+4.5

Others

(4.0)(12.5)+8.5

Profit for the period attributable to owners of the parent

・ Others include the following factor:- For the current period, insurance proceeds were recorded in the business in North America.

- 6 -Lifestyle Segment(Billions of Yen)

Current Period Previous Period

Change(11.9)

16.9(28.8)

Gross profit

58.7

67.2

(8.5)

Profit (loss) of equity method investments

(3.1)

10.3

(13.4)

Dividend income

2.5

2.4

+0.1

Selling, general and administrative expenses(65.6)(73.0)+7.4

Others

(4.4)

10.0

(14.4)

Profit for the period attributable to owners of the parent

・ Gross profit declined mainly due to the following factors:- For the current period, subsidiaries, whose businesses are fashion, food and distribution, reported a decrease ofprofit due to the closure of stores and a decrease in demand for commercial ingredients for the food service
industry caused by the state of emergency and curfew.
- For the current period, reclassification from a consolidated subsidiary for fashion & textile businesses in Asia
to an equity method investee caused a ¥3.0 billion decrease.
- For the previous period, a ¥3.2 billion loss in the valuation of fair value was recorded mainly due to thesuspension of drug development in the drug development fund invested through MBK Pharma Partnering Inc.
・ Selling, general and administrative expenses increased mainly due to the following factor:- For the current period, reclassification from a consolidated subsidiary for fashion & textile businesses in Asia
to an equity method investee caused a ¥3.9 billion increase.
・ Profit (loss) of equity method investment decreased mainly due to the following factors:- For the current period, associated companies, whose businesses are food, fashion, and services, recorded a
decrease of profit due to curfew and self-restraint.
- For the current period, IHH Healthcare Berhad recorded a decrease of ¥5.2 billion mainly because of decline
in operation rate due to lower demand for medical tourism and from patients with minor illnesses caused by
the effect of the COVID-19 pandemic, and impairment of goodwill over subsidiary in India.
・ In addition to the above, the following factor also affected results:- For the previous period, there was a ¥12.5 billion decline in tax burden in relation to income taxes recognizedas other comprehensive income corresponding to sales of financial assets measured at FVTOCI, including theshare of Recruit Holdings Co., Ltd.

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

Current Period Previous Period

Change

24.0

1.6

+22.4

Gross profit

57.5

23.4

+34.1

Profit (loss) of equity method investments

4.0

7.1

(3.1)

Dividend income

3.1

2.6

+0.5

Selling, general and administrative expenses(32.1)(32.3)+0.2

Others

(8.5)

0.8

(9.3)

Profit for the period attributable to owners of the parent

・ Gross profit increased mainly due to the following factors:- For the previous period, ¥7.1 billion loss was recorded due to the valuation of fair value on shares in Hutchison
China MediTech Ltd., while for the current period, ¥6.0 billion gain was recorded due to the valuation of fairvalue on shares.
- For the current period, a valuation gain was recorded at a holding company as a result of concluding a sharetransfer agreement to sell its entire shareholding in OSIsoft LLC.
- For the current period, an increase of ¥4.5 billion was recorded mainly due to good results of energy trading in
Mitsui Bussan Commodities Ltd.
- An increase of ¥2.2 billion was caused by the loss on the valuation and sales of the shares in Mercari, Inc. forthe previous period and the profit on the sales of the entire shareholding of it for the current period.
・ In addition to the above, the following factors also affected results:- For the previous period, a valuation profit on the derivative of ¥4.1 billion was recorded in relation to a put
option of an investment.
- For the current period, a holding company recorded an increase in tax burden in relation to a valuation gain asa result of concluding a share transfer agreement to sell its entire shareholding in OSIsoft LLC.
- There was a ¥3.3 billion increase in tax burden caused by an increase of gross profit in relation to shares in
Hutchison China MediTech Ltd.

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

September 30, 2020

March 31, 2020

11,508.9

11,806.3(297.4)Current Assets

3,766.9

4,124.4(357.5)

Non-current Assets

7,742.0

7,681.9+60.1

Current Liabilities

2,291.0

2,701.1(410.1)

Non-current Liabilities

5,037.9

5,044.3(6.4)

3,416.5

3,486.7(70.2)

3,934.1

3,817.7+116.40.87

0.91(0.04)

Total Assets

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

ChangeAssetsCurrent Assets:・

Cash and cash equivalents increased by ¥40.6 billion.

・

Trade and other receivables declined by ¥184.2 billion, mainly due to lower market prices and decreases in
trading volume in the Energy Segment and the Chemicals Segment, and decreases in handling amount in the
Machinery & Infrastructure Segment.

・

Other financial assets declined by ¥162.4 billion, mainly due to market volatility and decreases in trading
volume of derivative trading in the Energy Segment and the Innovation & Corporate Development Segment.

Non-current Assets:・

Investments accounted for using the equity method declined by ¥30.4 billion, mainly due to the following
factors:-

A decline of ¥15.7 billion resulting from foreign currency exchange fluctuations;-

A decline due to a fair value valuation of shares in Arctic LNG 2 Project in Russia through Japan Arctic
LNG B.V.;-

An increase of ¥82.0 billion corresponding to the profit of equity method investments for the current period,
despite a decline of ¥87.3 billion due to dividends from equity accounted investees;-

An increase of ¥17.4 billion due to an investment in Mitsui E&P Mozambique Area 1 Limited, which
participates in the Mozambique LNG Project; and-An increase due to an investment in Japan Arctic LNG B.V., which participates in the Arctic LNG 2 Projectin Russia.

・

Other investments increased by ¥135.4 billion, mainly due to the following factor:-

Mainly as a result of higher share prices, fair value on financial assets measured at FVTOCI increased by¥133.9 billion.

・

Trade and other receivables declined by ¥35.2 billion, mainly due to an impairment loss of ¥24.7 billion for
doubtful debt regarding the Moatize mine business in Mozambique.

・

Property, plant and equipment increased by ¥21.3 billion, mainly due to the following factors:-

An increase of ¥50.2 billion (including foreign exchange translation profit of ¥39.1 billion) at iron ore
mining operations in Australia; and
- 9 -

-

A decline of ¥36.9 billion (including foreign exchange translation loss of ¥7.2 billion) at the oil and gas
projects, which include the U.S. shale gas and oil projects from the current period.

・

Investment property increased by ¥21.3 billion, mainly due to an increase in the Innovation & Corporate
Development Segment.

Liabilities
Current Liabilities:
・Short-term debt declined by ¥50.8 billion. Furthermore, the current portion of long-term debt increased by¥24.5 billion, mainly due to a reclassification to current maturities.

・

Trade and other payables declined by ¥72.5 billion, corresponding to the decline in trade and other receivables.

・

Other financial liabilities declined by ¥301.4 billion, mainly due to corresponding decline in other financial
assets, payments on account payable at the integrated development project in the 2, Otemachi 1-Chome District
and decrease in the precious metal lease business in the Innovation & Corporate Development Segment.

Non-current Liabilities:
・Long-term debt, less the current portion, declined by ¥15.0 billion.

Total Equity Attributable to Owners of the Parent
・Retained earnings decreased by ¥3.7 billion.

・

Other components of equity increased by ¥117.9 billion, mainly due to the following factors:-

Financial assets measured at FVTOCI increased by ¥101.2 billion; and-Foreign currency translation adjustments increased by ¥45.6 billion, mainly reflecting the appreciation of
the Australian dollar against the Japanese Yen, despite the depreciation of the U.S. dollar and the Brazilian
real.

・

Treasury stock which is a subtraction item in shareholders' equity decreased by ¥0.9 billion, mainly due to thecancellation of the stock for ¥46.7 billion, despite share buy-back for ¥46.0 billion (including a buy-back forshare-based compensation plan for employees of ¥6.9 billion).

- 10 -

2) Cash Flows(Billions of yen)

Current Period Previous Period

ChangeCash flows from operating activities

380.8

326.7

+54.1

Cash flows from investing activities(224.2)(127.5)(96.7)

Free cash flow

156.6

199.2

(42.6)Cash flows from financing activities(132.3)14.6(146.9)16.2(16.9)

+33.1

40.5

196.9

(156.4)

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)

ChangeCash flows from operating activities

a

380.8

326.7

+54.1

Cash flows from change in working capital

b

75.9

(19.7)+95.6

Repayments of lease liabilitiesc(30.8)(29.4)

(1.4)

a-b+c

274.1

317.0

(42.9)

Core operating cash flow・Current Period Previous Period

Net cash from an increase or a decrease in working capital, or changes in operating assets and liabilities for thecurrent period was ¥75.9 billion of net cash inflow. Repayments of lease liabilities for the current period was¥30.8 billion of cash outflow. Core operating cash flow, cash flows from operating activities without both net
cash from an increase or a decrease in working capital and repayments of lease liabilities, for the current periodamounted to ¥274.1 billion. From current period, in order to reflect a regular cash generation output fromoperating activities more appropriately, repayments of lease liabilities have been deducted. In conformity withthis change, Core operating cash flow for the previous period has been restated.
-

Net cash inflow from dividend income, including dividends received from equity accounted investees, forthe current period totaled ¥114.4 billion, a decline of ¥33.6 billion from ¥148.0 billion for the previous
period.

-Depreciation and amortization for the current period was ¥133.1 billion, an increase of ¥13.6 billion from¥119.5 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

(0.5)

(0.4)

(0.1)

Mineral & Metal Resources

97.2

119.8

(22.6)

Energy

60.2

116.4

(56.2)

Machinery & Infrastructure

26.3

37.8

(11.5)

Chemicals

22.7

13.3

+9.4

Lifestyle

1.3

2.3

(1.0)

Innovation & Corporate Development

30.9

(5.7)

+36.6

All Other and Adjustments and Eliminations

36.0

33.5

+2.5

Consolidated Total

274.1

317.0

(42.9)- 11 -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 ¥31.4 billion, mainly due to the following factors:-

An investment in Mitsui E&P Mozambique Area 1 Limited, which participates in the Mozambique LNG
Project, for ¥17.4 billion.

・-An investment in Japan Arctic LNG B.V, which participates in the Arctic LNG 2 Project in Russia; and-A sale of IPP business in North America.

Net cash outflows that corresponded to purchases of property, plant, and equipment (net of sales of thoseassets) were ¥123.6 billion, mainly due to the following factors:-

An expenditure for the integrated development project in the 2, Otemachi 1-Chome District for¥36.5 billion.

・-An expenditure for the oil and gas projects for ¥23.0 billion; and-An expenditure for iron ore mining operations in Australia for ¥20.6 billion.

Net cash outflows that corresponded to purchases of investment property (net of sales of those assets) were¥52.4 billion, mainly due to an expenditure for the integrated development project in the 2, Otemachi 1-ChomeDistrict for ¥36.9 billion.

Cash Flows from Financing Activities
・Net cash outflows from net change in short-term debt were ¥52.8 billion, net cash inflows from net change inlong-term debt were ¥72.5 billion, and cash outflow from repayments of lease liabilities were ¥30.8 billion.

・The cash outflow from the purchases of treasury stock was ¥46.0 billion (including a buy-back for share-based
compensation plan for employees of ¥6.9 billion).

・The cash outflow from payments of cash dividends was ¥68.3 billion.

- 12 -

2. Management Policies(1) Result and Forecast for Investment and Loan Plan(*)
For the current period, approximately ¥265.0 billion in loans and investments were implemented, mainly for the
integrated development project in the 2, Otemachi 1-Chome District, oil & gas projects and iron ore mining
operations in Australia. On the other hand, approximately ¥55.0 billion was collected mainly through a sale of IPP
business in North America. We will continue to evolve the financial strategy and portfolio management withincash flow allocation frame work, which is flagged as one of the corporate strategies in the Medium-termManagement Plan by maintaining strict investment discipline and pursuing flexible and strategic capital allocation.
(*)Excludes changes in time deposits.
(2) Forecasts for the Year Ending March 31, 2021
1) Revised forecasts for the year ending March 31, 2021
<Assumption>

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

Revised
Forecast

Original
Forecast

Exchange rate (JPY/USD)

106.32106.00106.16108.00

Crude oil (JCC)
Consolidated oil price$36/bbl$49/bbl$42/bbl$40/bbl$39/bbl$44/bbl$33/bbl$39/bbl(Billions of Yen)

March 31, 2021 March 31, 2021
Revised forecast Original forecast

ChangeDescription

Gross profit

690.0

680.0

+10.0

Iron ore businessSelling, general and administrative
expenses(620.0)(610.0)(10.0)

Travel expenses decrease, while an
impairment loss in coal business

Gain on investments, fixed assets
and other

0.0

30.0

(30.0)

MiscellaneousInterest expenses(30.0)(50.0)+20.0

Lower interest rate

Dividend income

70.0

60.0

+10.0

Iron ore business, oil & gasbusiness

Profit (loss) of equity method
investments

170.0

170.0

－

Profit before income taxes

280.0

280.0

－

Income taxes(85.0)(85.0)－

Non-controlling Interests(15.0)(15.0)

－

180.0

180.0

－

Depreciation and amortization

300.0

300.0

－

Core operating cash flow

480.0

400.0

+80.0

Profit for the year attributable toowners of the parent

・ Original forecast announced in May, 2020 stated that an approximately ¥200.0 billion decrease was included
with a high degree of uncertainty as the impact of the COVID-19 pandemic. Since high-uncertainty situation has
continued, the profit for the year attributable to owners of the parent of ¥180.0 billion at the original forecast isunchanged for the revised forecast. However, since the situations of respective operating segments are not same,the Lifestyle Segment and the Iron and Steel Products Segment were revised down because the impact will be- 13 -

deeper than the original forecast, while the Innovation & Corporate Development Segment and Chemicals Segment
were revised up because the business is relatively solid.
・ It is assumed that foreign exchange rates for the six-month period ending March 31, 2021 (2nd half) will be¥106/US$, ¥76/AU$ and ¥19/BRL, while average foreign exchange rates for the six-month period ended
September 30, 2020 (1st half) were ¥106.32/US$, ¥73.91/AU$ and ¥19.74/BRL. Also, it is assumed that the annual
average crude oil price applicable to our financial results for the year ending March 31, 2021 will be US$44/barrel,
up US$5 from the original assumption, based on the assumption that the crude oil price (JCC) will average
US$42/barrel throughout the six-month period ending March 31, 2021.
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, 2021
Revised Forecast

Year ending
March 31, 2021
Original Forecast

Iron & Steel Products

(5.0)

5.0

(10.0)

Mineral & Metal Resources

120.0

120.0

－

Energy

0.0

0.0

－

Machinery & Infrastructure

35.0

35.0

－

Chemicals

25.0

20.0

+5.0

Trading business

Lifestyle(10.0)

5.0(15.0)

Decline in dining out and purchasing demand

35.0

15.0

+20.0

(20.0)(20.0)

－

180.0

180.0

－

(Billions of Yen)

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

ChangeDescription
Steel materials for automotive industry

Profits from sales/valuation of FVTPL
securities

The revised forecast for core operating cash flow by operating segment compared to the original forecast is asfollows:
Year ending
March 31, 2021
Revised Forecast

Year ending
March 31, 2021
Original Forecast

0.0

0.0

－

Mineral & Metal Resources

230.0

160.0

+70.0

Iron ore business

Energy

100.0

90.0

+10.0

Oil & gas price improvement

Machinery & Infrastructure

60.0

60.0

－

Chemicals

45.0

45.0

－

Lifestyle

5.0

15.0

(10.0)

Decline in dining out and purchasing demand

Innovation & Corporate
Development

35.0

15.0

+20.0

Profits from sales/valuation of FVTPL
securities

All Other and Adjustments
and Eliminations

5.0

15.0

(10.0)

480.0

400.0

+80.0

(Billions of Yen)
Iron & Steel Products

Consolidated Total- 14 -

ChangeDescription

2) Key commodity prices and other parameters for the year ending March 31, 2021
The table below shows assumptions for key commodity prices and foreign exchange rates for the forecast for theyear ending March 31, 2021. 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, 2021
(Announced in May 2020)

Crude Oil/JCC
Consolidated OilPrice(*1)

U.S. Natural
Commodity

1st Half

2nd Half(Result)(Assumption)

Revised
Forecast(Announcedin
October
2020)

－

33

36

42

39

¥3.2 bn (US$1/bbl)

39

49

40

44

2.15(*3)

1.81(*4)2.31(*3)

2.06

105(*7)

(*6)

(*6)

123(*8)(*6) →(*6)¥0.9 bnGas(*2)(US$0.1/mmBtu)

Iron Ore(*5)¥2.2 bn (US$1/ton)(*6)

Coking¥0.4 bn (US$1/ton)(*6)

Thermal¥0.1 bn (US$1/ton)(*6)

69(*8)(*6)(*6)¥0.7 bn (US$100/ton)

5,600

5,490(*10)

6,440

5,965

USD

¥1.3 bn (¥1/USD)

108.00106.32106.00106.16AUD¥1.6 bn (¥1/AUD)

75.00

73.91

76.00

74.95

BRL

¥0.3 bn (¥1/BRL)

26.00

19.74

19.00

19.37

Coal
Copper(*9)

Forex (*11)

March 2021

Original
Forecast(Announced in
May 2020)→(*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/2021 it
was assumed that there is a 4-6 month lag for approx. 30%, a 1-3 month lag for approx. 50%, and no lag for
approx. 20%. 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$2.15/mmBtu is assumed for sale prices linked to the HH price for FY Mar/2021 original
forecast, and US$2.31/mmBtu for FY Mar/2021 2nd half.
(*4) U.S. Gas figures for FY Mar/2021 1st half (result) are the Henry Hub Natural Gas Futures average daily
prompt month closing prices traded on NYMEX during January 2020 to June 2020.
(*5) The effect of dividend income from Vale S.A. has not been included.
(*6) Iron ore and coal price assumptions are not disclosed.
(*7) Iron ore results figures for FY Mar/2021 1st half (result) are the daily average (reference price) spot indicatedprice (Fe 62% CFR North China) recorded in several industry trade magazines from April 2020 to September
2020.
(*8) Coal results figures for FY Mar/2021 1st half (result) are the quarterly average prices of representative coal
brands in Japan (US$/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 2020.

- 15 -

(*10) Copper results figures for FY Mar/2021 1st half (result) are the averages of the LME monthly average cash
settlement prices for the period January 2020 to June 2020.
(*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 is as follows:・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, share buy-backs aimed at improving capital efficiency should be decided in a promptand flexible manner as needed concerning buy-back timing and amount by taking into consideration of thebusiness environment such as, future investment activity trends, free cash flow and interest-bearing debt levels,and return on equity.

For the period of the Medium-term Management Plan, emphasizing stability and continuity regarding dividends,
we have established a minimum annual dividend amount of ¥80 per share, based on our assessment of achievablestable core operating cash flow. In addition, the plan aims to steadily increase dividends through improvements incorporate performance.
Based on corporate performance during the period of the Medium-term Management Plan, a part of cash-out
amount will flexibly and promptly be allocated to an investment for growth as well as shareholders return such as
an additional dividend and share buy-back.
For the year ending March 31 2021, we envisaged an annual dividend of ¥80 per share(the same as the year ending
March31, 2020, including the interim dividend of ¥40 per share) taking into consideration of core operating cash
flow and profit for the year attributable to owners of the parent as well as stability and continuity of the amount ofdividend. In this connection, we decided to pay an interim dividend of ¥40 per share, the same amount as theprevious period.

- 16 -

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 important risks, uncertainties and other factors include, among others, (1) risk of COVID-19, (2) business
investment risks, (3) country risks, (4) risks regarding climate changes, (5) commodity market risks, (6) foreign
currency risks, (7) stock price risks of listed stock Mitsui and its subsidiaries hold, (8) credit risks, (9) risks
regarding fund procurement, (10) operational risks, (11) risks regarding employee’s compliance with laws,
regulations, and internal policies, (12) risks regarding information systems and information securities, (13) risks
relating to natural disasters, 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.

- 17 -

4. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position(Millions of Yen)
Assets
September 30,
2020

March 31,2020

Current Assets:
Cash and cash equivalents¥

Trade and other receivables

1,099,279¥

1,058,733

1,438,294

1,622,501

Other financial assets

400,461

562,899

Inventories

554,357

553,861

Advance payments to suppliers

142,798

167,250

Other current assets

131,694

159,175

3,766,883

4,124,419

Investments accounted for using the equity method

2,850,637

2,880,958

Other investments

1,619,786

1,484,422

Trade and other receivables

387,187

422,423

Other financial assets

148,797

186,010

2,142,671

2,121,371

Investment property

273,073

251,838

Intangible assets

193,546

195,289

Deferred tax assets

51,87458,908Other non-current assets

74,44480,654

7,742,015

7,681,873

Total current assets
Non-current Assets:

Property, plant and equipment

Total non-current assets
Total

¥

- 18 -

11,508,898¥

11,806,292

(Millions of Yen)
Liabilities and Equity
September 30,
2020

March 31,2020

Current Liabilities:
Short-term debt¥

Current portion of long-term debt

246,699¥

297,458

424,440

399,904

Trade and other payables

1,064,031

1,136,504

Other financial liabilities

325,560

626,963

Income tax payables

55,713

46,206

Advances from customers

105,855

133,247

Provisions

28,167

25,844

Other current liabilities

40,57534,984

2,291,040

2,701,110

4,214,175

4,229,218

Other financial liabilities

92,691

105,279

Retirement benefit liabilities

40,98039,956

Provisions

228,176

228,173

Deferred tax liabilities

435,394

412,971

Other non-current liabilities

26,47928,653

Total non-current liabilities

5,037,895

5,044,250

Total liabilities

7,328,935

7,745,360

Common stock

342,080

341,776

Capital surplus

403,585

402,652

Retained earnings

3,358,626

3,362,297

Other components of equity(105,991)(223,910)

Treasury stock(64,154)(65,138)

3,934,146

3,817,677

Non-controlling interests

245,817

243,255

Total equity

4,179,963

4,060,932

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

Equity:Total equity attributable to owners of the parent

Total

¥

- 19 -

11,508,898¥

11,806,292

(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, 2020 September 30, 2019
Revenue¥

Cost
Gross Profit

3,043,604¥

3,411,236(2,675,768)(2,983,047)

367,836

428,189(286,769)(281,776)

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

8,967

5,655

Impairment reversal (loss) of fixed assets－net(5,270)(2,596)

Gain (loss) on disposal or sales of fixed assets－net

(176)

4,815

Other income (expense) －net

(966)

10,120(284,214)(263,782)

Interest income

12,33623,043

Dividend income

35,12742,259Interest expense(28,378)(46,882)

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

19,085

18,420Share of Profit (Loss) of Investments Accounted for Using the Equity Method

Total finance income (costs)

81,986

136,099

Profit before Income Taxes

184,693318,926

Income Taxes(67,430)

Profit for the Period(68,067)¥

117,263¥

250,859¥

110,024¥

234,153

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

7,239

16,706

Condensed Consolidated Statements of Comprehensive Income(Millions of Yen)
Six-monthSix-month
period ended
period ended
September 30, 2020 September 30, 2019
Profit for the Period¥

117,263¥

250,859

Other Comprehensive Income:Items that will not be reclassified to profit or loss:
Financial assets measured at FVTOCI

137,206(58,137)

Remeasurements of defined benefit plans(1,417)(170)

Share of other comprehensive income of investments accounted for using the equity method(9,461)(753)

Income tax relating to items not reclassified(23,909)

14,978Foreign currency translation adjustments

84,399(62,741)

Cash flow hedges

6,678(3,424)(66,227)(134,175)

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(1,870)5,594

125,399(238,828)¥

242,662¥¥

229,395¥

12,031

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

13,267- 20 -

6,931
5,100

(3) Condensed Consolidated Statements of Changes in Equity(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)¥(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

Total

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(133)

Compensation costs related to share-based

294

payment(287)

16,578interest shareholders

30,772¥

341,776

(6)

(6)

1

1

23

23

(422)

Transfer to retained earnings
Balance as at September 30, 2019

(6)
421

(271)

Equity transactions with non-controlling¥

403,509¥3,268,463

16,156(30,772)¥

204,854(8,826)(612)

15,544¥(7,161)¥4,211,441¥

262,804¥

4,474,245(Millions of Yen)
Attributable to owners of the parent
CommonStock
Balance as at April 1, 2020¥

341,776

CapitalSurplus¥402,652¥

Profit for the period

Retained
Earnings

Other
Components ofEquity3,362,297¥(223,910)

Treasury
Stock¥(65,138)

Total¥

110,024

Other comprehensive income for the period
Comprehensive income for the period

110,024

Noncontrolling
Interests

3,817,677¥

243,255

Total
Equity¥4,060,932

110,024

7,239

117,263

119,371

119,371

6,028

125,399

119,371229,395

13,267

242,662

Transaction with owners:
Dividends paid to the owners of the parent(68,301)(68,301)(68,301)

Dividends paid to non-controlling interest(8,872)shareholders
Acquisition of treasury stock
Sales of treasury stock(105)

Cancellation of treasury stock
Compensation costs related to share-based

304

payment(45,970)(45,970)

232

0

0

(46,722)46,722

-

-

1,357

1,357

(15)

interest shareholders
Transfer to retained earnings
Balance as at September 30, 2020

(45,970)
(127)

1,053

Equity transactions with non-controlling

1,455
¥

342,080¥

403,585¥(8,872)

3,358,626- 21 -¥

3(12)(1,455)-(105,991)¥(64,154)¥

3,934,146(1,833)(1,845)-¥245,817¥

4,179,963

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

Six-month period ended Six-month period ended
September 30, 2020
September 30, 2019
Operating Activities:
Profit for the period
Adjustments to reconcile profit for the period to cash flows¥

from operating activities:
Depreciation and amortization

117,263¥

250,859

133,082

119,484

Change in retirement benefit liabilities
Loss allowance281
33,078931
6,350(Gain) loss on securities and other investments—net
Impairment (reversal) loss of fixed assets—net(8,967)
5,270(5,655)2,596(Gain) loss on disposal or sales of fixed assets—net
Interest income, dividend income and interest expense

176(32,753)(4,815)(32,401)

Income taxes
Share of (profit) loss of investments accounted for using the equity method

67,430(81,986)

68,067(136,099)

Valuation (gain) loss related to contingent considerations and others
Changes in operating assets and liabilities:(2,258)(1,854)

Change in trade and other receivables
Change in inventories

230,646
2,148

190,676(40,862)

Change in trade and other payables
Other—net(81,534)(75,345)(154,456)(15,100)

Interest received
Interest paid

29,034(33,544)

39,715(50,695)

Dividends received
Income taxes paid

114,368(35,553)

147,975(58,039)

380,836

326,677(14,560)

2,110

Net change in investments in equity accounted investees
Net change in other investments(31,392)(891)(52,405)
45,782

Net change in loan receivables
Net change in property, plant and equipment(1,385)(123,575)(5,873)(116,927)

Net change in investment property(52,413)(189)(224,216)(127,502)

Net change in short-term debt
Net change in long-term debt

(52,819)
72,49698,314
19,143

Repayments of lease liabilities
Purchases and sales of treasury stock(30,832)(45,970)(29,426)(5)

Dividends paid
Transactions with non-controlling interest shareholders(68,301)(6,890)(69,524)(3,876)(132,316)

14,626

16,24240,546(16,883)
196,918

1,058,733

956,107

Cash flows from operating activities
Investing Activities:
Net change in time deposits

Cash flows from investing activities
Financing Activities:

Cash flows from financing activities
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Change in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period¥

1,099,279¥

1,153,025“Interest income, dividend income and interest expense”, “Interest received”, “Interest paid” and “Dividends received” of Condensed
Consolidated Statements of Cash Flows include not only interest income, dividend income and interest expense that are included in“Finance Income (Costs)” of Condensed Consolidated Statements of Income, but also interest income, dividend income, interest
expense that are included in Revenue and Cost respectively and cash flows related with them.

- 22 -

(5) Assumption for Going Concern: None
(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, 2020 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, 2020.
IFRSIFRS 3

Title
Business Combinations(amended in October 2018)

Summaries
Amendment of definition of a business

Impacts from the application of IFRS 3 "Business Combinations" amended in October 2018 on the Condensed
Consolidated Financial Statements are immaterial.
2) Changes in Accounting Estimates
The significant changes in accounting estimates in the Condensed Consolidated Financial Statements are as
follows:(Impairment losses for the Moatize mine business in Mozambique)Mitsui & Co. Mozambique Coal Finance Limited, which lends to Mozambique coal business, recognized a loss of¥ 24,668 million as a loss allowance for doubtful debt in “Selling, general and administrative expenses” in theCondensed Consolidated Statements of Income (Mineral & Metal Resources ¥ 19,734 million, Machinery &Infrastructure ¥ 4,934 million) due to the decrease of production mainly related to the revision of the production
plan and the decline in the coal prices which are based on several third parties’ mid-long term forecasts.

- 23 -

(7) Changes in Presentation（Condensed Consolidated Statements of Cash Flows）“Repayments of lease liabilities”, which was included in “Net change in long-term debt” for the six-month period
ended September 2019 is separately presented from the three-month period ended June 2020 in order to indicate
the calculation of Core Operating Cash Flow whose formula has been altered from April 1,2020. Condensed
Consolidated Statements of Cash Flows for the six-month period ended September 2019 is reclassified to conformto this change in presentation.
As a result, the amount of ¥ (10,283) million for the six-month period ended September 2019, which was presented
in “Net change in long-term debt” within “Cash Flows from Financing Activities” in the Condensed Consolidated
Statements of Cash Flows for the six-month period ended September 2019 has been reclassified and presented as ¥19,143 million for “Net change in long-term debt” and as ¥ (29,426) million for “Repayments of lease liabilities”.
（Condensed Consolidated Statements of Changes in Equity）
Compensation costs related to stock options and share performance-linked restricted stock are integrated in“Compensation costs related to share-based payment” from the six-month period ended September 30, 2020.
Compensation costs related to the share-based compensation plan for employees introduced in the six-month
period ended September 30, 2020 is also included in this account.
As a result, in Condensed Consolidated Statements of Changes in Equity for the six-month period ended
September 30, 2019, the capital surplus of ¥ 23 million for “Compensation costs related to stock options”, thecommon stock of ¥ 294 million and the capital surplus of ¥ (294) million for “Compensation costs related to shareperformance-linked restricted stock” have been reclassified and presented as the common stock of ¥ 294 million
and the capital surplus of ¥ (271) million for “Compensation costs related to share-based payment”.

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(8) Segment Information
Six-month period ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(Millions of Yen)
Iron & Steel
Products

Mineral &Metal
Resources

Revenue

106,032

597,132

Gross Profit

9,576

100,601(4,501)(5,797)

Others /AdjustmentsandEliminations

Consolidated
Total

Machinery &Infrastructure

Chemicals

LifestyleInnovation &Corporate
Development

354,787

372,189

597,413898,240

113,9113,039,704

3,900

3,043,604

33,257

48,29458,50558,72157,548366,5021,334

367,836

30,237

11,024

41,8132,554(3,112)

3,965

81,980

6

81,986

71,261(3,681)

23,386

10,731(11,946)

23,958

107,9122,112

110,024

EnergyTotal

Share of Profit (Loss) of Investments
Accounted for Using the Equity
MethodProfit (Loss) for the Period
Attributable to Owners of the parent
Core Operating Cash Flow
Total Assets at September 30, 2020

(484)

97,22760,24626,33922,657

1,311

30,880238,176

35,913274,089

515,110

2,096,566

2,316,277

2,175,644

1,199,714

1,889,739

1,144,356

11,337,406

171,492

11,508,898

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

Mineral &Metal
Resources

Revenue

117,867

549,654

Gross Profit

12,601

124,751

6,495

2,742

Others /AdjustmentsandEliminations

Consolidated
Total

Machinery &Infrastructure

Chemicals

LifestyleInnovation &Corporate
Development

446,455424,685

774,816

1,013,199

83,2333,409,909

1,327

3,411,236

75,187

63,84561,025

67,16023,368427,937252

428,189

32,70625,81947,015

6,771

10,2987,122

136,226(127)

136,099

101,884

64,621

36,963

4,745

16,941

1,645

229,541

4,612

234,153

EnergyTotal

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 March 31, 2020

(412)

119,812

116,449

37,756

13,2902,295(5,692)

283,498

33,495

316,993539,599

1,921,883

2,566,282

2,360,321

1,217,737

1,907,621

1,198,286

11,711,729

94,563

11,806,292

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, 2020 and September 30, 2020 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 ¥ 7,142,647 million and ¥ 7,099,708
million, respectively.
2. Transfers between reportable segments are made at cost plus a markup.
3. Profit (Loss) for the Period Attributable to Owners of the parent of “Others /Adjustments andEliminations” includes income and expense items that are not allocated to specific reportable segments,and eliminations of intersegment transactions.
4. Total assets of “Others / Adjustments and Eliminations” at March 31, 2020 and September 30, 2020
includes elimination of receivables and payables between segments amounting to ¥ 7,048,084 millionand ¥ 6,928,216 million, respectively.
5. Formerly, Core Operating Cash Flow was calculated by eliminating the sum of the “Changes in
Operating Assets and Liabilities” from “Cash Flows from Operating Activities” as presented in theCondensed Consolidated Statements of Cash Flows. From the three-month period ended June 30, 2020, it
is calculated by additionally deducting the “Repayments of lease liabilities” as presented in the “CashFlows from Financing Activities”. In accordance with this change, Core Operating Cash Flow for the sixmonth period ended September 30, 2019 has been restated.
6. In order to accelerate our multifaceted, flexible initiatives that combine various kinds of knowledge fromdifferent business domains, the business of next-generation electric power was transferred from the“Machinery & Infrastructure” segment to the “Energy” segment, in conjunction with the creation of theEnergy Solutions Business Unit in “Energy” segment, from the three-month period ended June 30, 2020.
In accordance with this change, the segment information for the six-month period ended September 30,
2019 has been restated to conform to the current period presentation.

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(9) 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 partially damaged tanks owned by ITC. ITC has resumed its operation after
discussions with related authorities. Harris County Fire Marshal's Office released its final report with respect to thefire incident on December 6, 2019 (US time) and the report classified the fire as accidental, while not specifying
the cause of the fire. The cause of the fire is still under investigation by other relevant authorities.
The profit and loss related to this incident recognized in the six-month period ended September 30, 2020 and 2019,
and the outstanding balance of related provision as of September 30, 2020 are 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.

(10) Taxation on Capital Gain in India
Earlyguard Limited (“EG”), a UK subsidiary of Mitsui & Co., Ltd., received a tax payment notice dated January
21, 2020 which requested payment of 24 billion Indian Rupees (¥37 billion) from Indian tax authority.
The taxable income of this notice is the capital gain on sales of Finsider International Company Limited (a UKcompany that owned 51% of Sesa Goa, an Indian iron ore company) shares held by EG in April 2007. Although
EG treated the capital gain properly according to the tax laws at that time, the tax payment notice has been issued.
The company does not expect a significant impact on our consolidated financial position, operating results andcash flow at this stage.

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