Presentation of Financial Results
for the Second Quarter Ended
September 2023
Mitsui Matsushima Holdings Co., Ltd.

1

Contents

3P

10P

2Q FY2023 Financial Results
FY2023 Consolidated Earnings Forecast(Revised) and Dividend Forecast

16P

Latest Topics

19P

Reference Materials

2

2Q FY2023 Financial Results3Consolidated Income Statement
Income statement⚫

Net sales increased as a result of the conversion of MOS into a subsidiary.

⚫

Both net sales and profit increased due to a rise in coal prices.
(Million yen)

FY20222Q

FY20232Q

Y-o-ychangeMain factors behind changes

Net sales

33,43739,628+6,191• Conversion of MOS into a subsidiary (Consumer
Goods Business)• Rise in coal prices in the Coal Production
Business

Operating profit(before amortization of

11,87916,593+4,713(12,261)(17,016)(+4,754)• Rise in coal prices in the Coal Production
Business

Ordinary profit

12,46917,329+4,859Net profit attributable toowners of parent

8,525

11,904+3,378

goodwill*)* Operating profit before amortization of goodwill is operating profit excluding the amortization of goodwill that arises from business acquisitions.

4Consolidated Segment Information⚫

The Consumer Goods and Services Business segment comprises the Consumer Goods Business and the Industrial Products
Business.
✓ MOS Co., Ltd. (Consumer Goods Business) was consolidated (1Q FY2023).

⚫

The Energy Business segment comprises the Coal Production Business (Note), the Coal Sales Business, and the Renewable
Energy Business.
(Note) The fiscal year end of the Coal Production Business is December 31, and the financial figures for January to June are used.

Net sales
Business

Segment profit
FY20222Q

FY20232Q

Y-o-ychangeBusiness(Million yen)

FY20222Q

FY2023
2Q

1,498

Y-o-y
changeConsumer Goods
and Services

14,985

17,115+2,129Consumer Goods
and Services(before amortizationof goodwill)(1,880)1,754(2,177)+256(+297)

Energy17,794

21,895+4,100

Energy10,927

15,622+4,694

Other

719

688

-30

Other

79

91

+12

(62)

(70)

-8

(625)

(874)

-249

11,87916,593(17,016)+4,713(+4,754)

Adjustments

Adjustments
Total

Total

33,43739,628+6,191(before amortizationof goodwill)(12,261)* “Other” represents business segments not included in reporting segments and includes the Real Estate Business, the Stevedore and Warehouse Business, etc.
* Adjustments in segment profit include companywide expenses not allocated to each reporting segment.

5

Breakdown of the Energy Business Division⚫

Coal Production BusinessNet sales and segment profit: Both net sales and profit increased due to a rise in coal prices.

Net sales

Segment profit
FY2022
2Q

Business
Coal Production
Business
Sales volume

17,474

Coal Sales Business
Sales volume

Renewable
Energy BusinessY-o-ychangeFY2023
2Q

21,631

FY2022
2Q

Business+4,157530,000 tons

540,000 tons

+10,000 tons

117
1,550,000
tons

86
1,390,000
tons-31-160,000 tons

202

177

-24

(Million yen)

Coal Production
Business

10,734

15,477+4,743

Coal Sales Business

66

44

-22

Renewable
Energy Business

126

99

-26

10,927

15,622+4,694

Total
Total

17,794

21,895Y-o-ychangeFY2023
2Q+4,100Major indicators
FY2022 2Q
Coal Production
Business(Jan.–Jun.
results)

FY2023 2Q

ChangeSales volume: Thermal coal

430,000 tons

470,000 tons

+40,000 tons

Sales volume: Semi-soft coking coal

100,000 tons

70,000 tons

-30,000 tons

Average coal price: Thermal coal

US$ 255.2

US$ 306.4+US$ 51.1

Average coal price: Semi-soft coking coal

US$ 316.3

US$ 221.9-US$ 94.4

Exchange rate: A$/US$ (average rate)

US$ 0.72

US$ 0.68

Weaker A$ against US$: -0.03

Exchange rate: A$/¥ (average rate)

88.5 yen

91.2 yen

Yen depreciation: +2.8 yen

6Consolidated Balance Sheet
Balance sheet

March 31, 2023
Amount(Million yen)

September 30, 2023

Ratio
(％)

AmountRatio(％)

ChangeMajor factors behind changes

Current assets

63,237

66.6

64,123

67.7+885

Cash and deposits: +4,785; Trade receivable: -4,386

Fixed asset

31,78833.5

30,56132.3-1,226

Intangible assets: -150; investment securities: -901

95,025100.0

94,685

100.0

-340

Current liabilities

26,33027.7

19,802

20.9-6,528Fixed liabilities

12,093

12.7

11,60712.3-485

38,42340.4

31,41033.2-7,013

Total assets

Total liabilities

Total net assets

56,602

59.6

63,275

66.8+6,672

Total liabilities and net
assets95,025100.0

94,685

100.0

-340

September 30, 2023

Change39,501

44,292+4,79012,6608,970-3,69026,84035,321+8,481

Shareholders’ equity ratio (%)

58.7

66.7

+8.0

Debt/equity ratio (times)

0.25

0.16

-0.09

Trade payables: -1,391; Short-term borrowings payable-3,151Long-term borrowings: -538

Net profit attributable to owners of parent: +11,904
FY2022: Year-end dividend (240 yen per share) -3,135
Capital surplus (acquisition of additional shares of MOS):-1,678Acquisition of own shares: -1,289

Other indicators
March 31, 2023
Cash and deposits(including long-term deposits)

Debt
Net cash and deposits

7Consolidated Balance Sheet (September 30, 2023)
Balance sheet

Current assets

64.1 billion• Cash and deposits

44.2 billion• Accounts receivable

9.4 billion• Inventories

8.6 billion

Current liabilities

19.8 billion• Accounts payable

6.4 billion• Debt

3.6 billion

Fixed liabilities

11.6 billion• DebtNet assets

Fixed assets• Tangible fixed assets

30.6 billion
12.8 billion(Buildings)(3.1 billion)(Land)(7.6 billion)(Machinery and equipment,
leases, etc.)(1.9 billion)• Intangible assets(Goodwill)• Securities

Total assets

5.2 billion

63.3 billion

Shareholders’equity ratio
66.7%
Debt/equity ratio
0.16 times

13.3 billion(12.7 billion)

3.0 billion

94.7 billion

Total liabilities and net assets 94.7 billion
8Consolidated Cash Flows(Million yen)

Cash flows
FY2022
2Q
Net profit before income taxes
Depreciation and amortization (including goodwill
amortization expenses)
Working capitalOther
CF from operating activities

12,452981(1,693)(2,486)FY20232Q

Main factors

17,394
1,221
3,118(7,638)• Payment of accrued consumption taxes, income taxes payable,
etc.

9,254

14,096(337)(9)(1,270)
1,009

(481)
1,002
(455)
(17,384)(607)(17,317)(1,076)(1,044)(4,034)(3,119)(1,870)(141)(2,415)(1,359)CF from financing activities(4,133)(10,928)

Effect of exchange rate changes on cash andcash equivalents

1,900

769

Changes in cash and cash equivalents

6,414(13,379)

Cash and cash equivalents at beginning of period

19,41338,064

Cash and cash equivalents at end of period

25,82824,685

Changes in fixed assets
Investment securities
Acquisition of subsidiaries accompanying a change inthe scope of consolidation

Other
CF from investing activities
Changes in debt
Payment of dividends
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Other• Acquisition of shares of Plus One Techno• Changes in time deposits, etc.

• Payment of year-end dividend for FY2022: 240 yen per share(+160)• Acquisition of additional shares of MOS• Acquisition of own shares, etc.

9

FY2023 Consolidated
Earnings Forecast (Revised)and Dividend Forecast

10Revised FY2023 Consolidated Earnings Forecast⚫

In light of the recent trend of earnings, the Company has revised its previous FY2023 consolidated earnings forecast announced on May 15, 2023 asshown below.

⚫

Net sales and profit at all levels are expected to exceed the initial forecast mainly due to an increase in coal sales volume, a rise in coal prices,
and a reduction in production costs in the Coal Production Business.

⚫

The revised earnings forecast reflects in extraordinary losses an estimated amount of approximately 3 billion yen for additional costs
related to the termination of the Liddell Coal Mine.

Consolidated earnings forecast
FY2022
Results

Net sales(Million yen)

FY2023 Initial
Forecast(Disclosed on May 15)

FY2023 Revised
Forecast

Change from
Initial Forecast

Year-on-year
Change80,01566,00070,000+4,000-10,015

Operating profit(Operating profit
beforeamortization of
goodwill)

35,789（36,553）

16,000(16,846)

21,000(21,859)+5,000(+5,013)-14,789(-14,694)

Ordinary profit

35,93317,00022,000+5,000-13,933

Net profit attributableto owners of parent

22,977

11,00012,000+1,000-10,977

Dividend per share

320 yen

80 yen80 yenー-240 yen**

The FY2022 per-share dividend of 320 yen consists of an ordinary dividend for common shares of 80 yen and a commemorative dividend of 240 yen.
In addition to paying the ordinary dividend, the Company is acquiring its own shares (subject to an upper limit of 3 billion yen) with a view to achieving a total shareholder return
ratio of around 30% for FY2023.
The forecast above is based on information available as of the date of this publication. Actual results may vary due to various future factors. If a revision of the forecast of financial
results becomes necessary, the Company will disclose the revised figures promptly.

11

Shareholder Returns for FY2023
Dividend forecast and interim dividend result⚫

Dividend forecast for FY2023 (annual total): 80 yen per share (no change from the initial forecast)⚫

Interim dividend per share at the end of the second quarter of FY2023: 40 yen (record date of September 30,
2023)

⚫

The Company has not cut dividends for the past 17 years (ordinary dividend). The Company aims to continue
to keep the ordinary dividend at no less than 80 yen (annual total) in the future.

Dividend trend
350 yen

100%
94.8%

300 yenCommemorative
記念配当

250 yenOrdinary
普通配当

dividend
dividend
Payout ratio
配当性向

200 yen80%

No dividend cut
for 17 years

Acquisition ofown shares
3 billion yen(Ordinary dividend)60%
Commemorative
dividend
10 yen

150 yenCommemorative
dividend
240 yen

40.8%
36.2%

36.7%

40.5%

40%
34.4%
29.1%

100 yen
50 yen23.8%
30 yen 30 yen
13.3%
20 yen40 yen 40 yen 40 yen 40 yen
13.3% 12.4% 11.4%

FY200607/3期

FY200910/3期

40 yen40 yen40 yen40 yen40 yen50 yen28.4%

50 yen50 yen80 yen80 yen 80 yen

19.3%

20%

18.1%

8.5%

0 yen

0%
FY200708/3期

FY200809/3期

FY2010
11/3期

FY2011
12/3期

FY2012
13/3期

FY2013
14/3期

FY2014
15/3期

FY2015
16/3期

FY2016
17/3期

FY2017
18/3期

FY201819/3期

FY201920/3期

FY2020
21/3期

FY2021
22/3期

FY2022
23/3期

FY202324/3期(forecast)(予想)* Since a 10-to-1 share consolidation was conducted effective October 1, 2016, the dividend per share was calculated based on the assumption that the share consolidation was conducted.
* The payout ratio was not calculated for FY2008 and FY2020 due to negative net profit.

12

FY2023 Consolidated Segment Earnings Forecast⚫

Consumer Goods and Services Business Division: Profit is expected to increase compared to the initial forecast mainly
due to an increase in orders received by Nippon Katan and the acquisition of a business from Katsumata by MOS.

⚫

Energy Business Division: Both net sales and profit are expected to increase compared to the initial forecast mainly due toan increase in coal sales volume, a rise in coal prices, and a reduction in production costs.

Net sales

Business

Segment profit
FY2022
Results

FY2023
InitialForecast(Disclosed on
May 15)

FY2023
Revised
Forecast

Change from
InitialForecast

ConsumerGoods andServices

29,504

Energy49,06828,00032,000+4,000

Other Adjustments

1,443

1,000

1,000

ー

Total

80,01566,00070,000+4,00037,00037,000ーBusiness(Million yen)

FY2022
Results

FY2023
InitialForecast(Disclosed on May 15)

ConsumerGoods andServices

FY2023
Revised
Forecast

Change from
Initial Forecast

3,718

3,600

3,900

(4,482)(4,446)(4,759)+300(+313)

Energy33,922

14,10019,200+5,100

Other Adjustments(1,852)(1,700)(2,100)-400(before amortizationof goodwill)

Total(beforeamortization of
goodwill)

35,78916,00021,000+5,000(36,553)(16,846)(21,859)(+5,013)* “Others” represent a business segment not included in reporting segments, and includes the Real Estate Business, the Stevedore and Warehouse Business, etc.
* Adjustments in segment profit include companywide expenses not allocated to each reporting segment.
・ FY2022: Expenses increased temporarily mainly due to the payment of special grants from the Company to the employees of subsidiaries and special sponsorship of a ladies professional golf tournament.
・ FY2023: Expenses have increased temporarily mainly due to special sponsorship of a ladies professional golf tournament, M&A expenses, and advertising expenses.

13

Breakdown of Earnings Forecast for the Energy Business Division (1)⚫

Coal Production Business: Both net sales and profit are expected to increase compared to the initial forecast mainly due toan increase in coal sales volume, a rise in coal prices, and a reduction in production costs.

Net sales

Business

Coal
Production
Business
Sales volume
Coal Sales
Business
Sales volume
Renewable
EnergyBusiness

Total

Segment profit
FY2022
Results
48,493

FY2023
InitialForecast(Disclosed on
May 15)27,600

FY2023
Revised
Forecast

Changefrom
InitialForecast

31,600+4,0001,100,000
tons

760,000
tons

870,000
tons+110,000
tons

244

100

100

－

3,060,000
tons

1,460,000
tons

1,760,000
tons+300,000
tons

330

300

300

－

49,06828,00032,000+4,000Business(Million yen)

FY2022
Results

FY2023
InitialForecast(Disclosed on
May 15)

FY2023
Revised
Forecast

Changefrom
InitialForecast

Coal
Production
Business

33,607

14,00019,100+5,100Coal Sales
Business

148

0

0

－

Renewable
EnergyBusiness

166

100

100

－

33,922

14,10019,200+5,100Total

14Breakdown of Earnings Forecast for the Energy Business Division (2)Major indicators

Coal
Production(Jan.–Dec.
results)

FY2023 Initial
Forecast

FY2022
Results(Disclosed on May 15)

FY2023 Revised
Forecast

Change from Initial
Forecast

Sales volume (Thermal coal)

930,000 tons

630,000 tons

710,000 tons

+80,000 tons

Sales volume (Semi-soft
coking coal)

180,000 tons

130,000 tons

160,000 tons

+30,000 tons

US$ 344.0

US$ 250

US$ 258+US$8

US$ 263.3

US$ 180

US$ 190+US$10Exchange rate:
A$/US$ (average rate)

US$ 0.69

US$ 0.68

US$ 0.68

ーExchange rate: A$/¥(average rate)

91.1 yen89.0 yen

91.5 yen

Yen depreciation+2.5 yen

Average coal price: Thermal
coal(Jan. to Dec. average)

Average coal price: Semisoft coking coal(Jan. to Dec. average)* Sales volume is for
Mitsui Matsushima’s
share (32.5%)

Market information
2020(US$/Mt)

Jan.–Mar.

Apr.–Jun.

2021

Jul.–Sep.

Oct.–Dec.

Jan.–Mar.

Apr.–Jun.

2022

Jul.–Sep.

Oct.–Dec.

Jan.–Mar.

Apr.–Jun.

2023

Jul.–Sep.

Oct.–Dec.

Jan.–Mar.

Apr.–Jun.

Jul.–Sep.

Results
Apr. contract
Thermalcoal

GCI
Cokingcoal

Foreignexchange

94.75

Heavy coking coalSemi-soft coking
coal

68.75

109.9772.75

Oct. contract

67.6

375.00N/A

199.95

N/A

395

55.3

51.5

67.4

88.7

109.0

167.5

183.9

262.8

376.8

420.8

379.5

247.8

160.7

147.8

147-148
136
100-104 95-104

110
82-86

116
87-91

122
91-92

117
93-94

203
149

371
218

395
275

526
368

287
237

279
230

315
268

283
N/A

240
162.7

US$/A$

US$0.78

US$0.75

US$0.69

US$0.67

Yen/A$

85.0 yen

82.5 yen

91.1 yen

92.4 yen* Effective April 2017, the method of calculating the price of coking coal was changed to a spot-linked method.
* The coal prices in the table above are benchmark prices and index prices, which are used as the basis for transaction prices, and do not represent the Company’s actual transactions.

15

Latest Topics

16

Toward Termination of Liddell Coal Mine in Australia
Status of Liddell Coal Mine in Australia⚫

Operational structure: Joint venture between local unit Mitsui Matsushima Australia Pty. Ltd.
(32.5%) and Glencore (67.5%)⚫

All raw coal mining and production in mining areas currently approved by the state government
were discontinued in July 2023.
The application for environmental permits to extend the mining area to adjacent areas was rejectedby the local authority in October 2022.

⚫

The Company plans to discontinue also the Coal Sales Business in FY2023.

⚫

Toward the termination of the coal mine, sales (for 100% of interest) are expected to decline toabout 2,600,000 tons in FY2023, compared to about 3,300,000 tons in FY2022.

⚫

In response to the indication from the Liddell Joint Venture of additional costs related to thetermination of the Liddell Coal Mine, the Company has reflected an estimated amount ofapproximately 3 billion yen for such costs in the revised consolidated earnings forecast.

17

New Business through M&A

Japan Chain Holdings, Inc.
Outline⚫
⚫

⚫
⚫

The Company is scheduled to acquire 50.1% of the shares of Japan Chain Holdings, Inc (“JCH”) on December 8, 2023
(the seller retains a put option for the remaining shares).
JCH and the three companies organized under it, SUGIYAMA CHAIN CO., LTD., ZEXUS CHAIN Co., Ltd., andMAXCO Chain, Ltd. (U.S.), are a group engaged in the manufacture, sales, etc., of industrial roller chains andconveyer chains, with a strong presence in the Japanese and the U.S. industrial chain markets.
Holding a high market share for roller chains for power transmission both in Japan and overseas.
Boasting the highest share in the Japanese market for large conveyor chains for water treatment systems.

Main products(1) Roller chains(2) Conveyer chains

Small chains used for power transmission
Mainly used for embedding in industrial
equipment, manufacturing facilities, etc.

Chains used for conveying things
Mainly used for installation on manufacturing lines

Standard roller chain

Double-capacity chain

Chain for water
treatment systems

Chain for steel
manufacturing
18

Reference Materials

19Outline of the Consumer Goods and Services Business
Investment policy
In anticipation of a decarbonized society, we have restructured the business portfolio through active M&A based on thefollowing investment policy:

Stable revenues

Niche market

Consumer Goods BusinessNippon Straw• Joined in February 2014
• Manufacture and sales ofstraws• Approx. 70% share of theJapanese telescopic straw
marketHanabishi• Joined in October 2015
• Sales of custom-made suits• A pioneer in custom-madesuits, highly praised bycustomers

Meiko Shokai• Joined in April 2019
• Manufacture and sales ofshredders• No. 1 market share in theJapanese office shredder
marketKMT• Joined in April 2020
• Planning and sales of pet food
• Brand strength in the healthy
premium pet food market

Systech Kyowa• Joined in February 2021
• Manufacture and sales of
housing-related materials• Integrated production within thegroup, interior door-relatedmaterials with high market shares

MOS• Joined in February 2023
• Processing and sales ofthermosensitive cash register
paper rolls• No. 1 market share in the industry

Easy to understandIndustrial Products Business
CST• Joined in February 2017
• Manufacture and sales of mask blanks• Japan’s first specialized manufacturer of mask
blanks with a blue-chip customer base

Sansei Denshi• Joined in April 2020
• Manufacture and sales of crystal device
manufacturing equipment• The only manufacturer in Japan capable ofbuilding in-line systems that handle
processes from assembly to inspection
Nippon Katan• Joined in May 2022
• Manufacture and sales of mounting
hardware for power lines• A specialized manufacturer that boasts a
leading market share in Japan
Plus One Techno• Joined in August 2023
• Manufacture and sale of measuring
equipment• No. 1 market share in pipe-feeder typeautomatic measuring equipment* Businesses within the Consumer Goods and Services Business Division have been grouped into the two segments shown above, startingfrom the financial reporting for the first quarter of FY2023.

20

Trend in the Coal Market(US$/Mt)

Trend in the Global Coal Index, Australia Newcastle Port Load, Standard-Quality Thermal Coal

500.00450.00400.00350.00300.00250.00200.00150.00100.0050.00
0.00
2003/10/31

2005/10/31

2007/10/31

2009/10/31

2011/10/31

2013/10/31

2015/10/31

2017/10/31

2019/10/31

2021/10/31

2023/10/31

21

Proportion in Volume of the Determined/TBD Portions of Coal Prices

Method of determining a contract priceContract type

Reference price

Global Coal Index priceTiming ofdetermination

Semi-annually in April and October only

Daily

Contract
methodA contract price is determined according to the qualityof coal in reference to prices determined bilaterally
among Japanese electric power companies andcertain coal majors as a benchmark (reference).

It is common to use a monthly/quarterly average (overthree months), etc. of the index price primarily prior toloading, rather than the index price at the time of acontract, as a contract price.

Reference: Ministry of Economy, Trade and Industry, “Coal Market Study Group—Report—Reference Materials” published in April 2018

FY2023 proportion in volume of the determined/TBD portions of coal prices (current estimate)
Percentage of
Liddell production

Proportion in volume ofdetermined/TBD portionsof coal prices

Thermal coal (approx. 85%)

Results and determined portion (approx. 93%)

Coking coal(approx. 15%)

TBD portion(approx. 7%)

22

HANABISHI Notice of Thank-you Gifts Sent to People Paying Hometown Taxes (Furusato Nozei)×
Hanabishi, a tailoring company founded in 1935, provides custom-made suittailoring tickets as thank-you gifts to people paying hometown taxes to
Yomogita-mura, Aomori Prefecture, the location of Hanabishi’s manufacturing base.
Please visit the Satofull website or the Hanabishi website for how to apply andother information

Website of Satoffull
Website of
HANABISHI Co., Ltd.

Tailoring tickets
for a contributionof 100,000 yen
Equivalent
to 30,000 yen

The tailoring tickets will be for bothmen’s and women’s suits.
The tickets can be used for the tailoring ofsuits, jackets, and pants.

https://www.satofull.jp/products/detail.php?product_id=1357994(In Japanese)
https://www.hanabishi-housei.co.jp/furusato/(In Japanese)

Can also be usedin conjunction
with shareholder
perks

Can be used at
18 stores locatednationwide* Valid for two years after sending

The RKB×Mitsui Matsushima Ladies tournament
winner Chisato Iwai (in tournament winner jacket
made by HANABISHI)

23

× Omuta City

Notice of our Thank-you Gifts Sent to People
Paying Hometown Taxes (Furusato Nozei)

As thank-you gifts sent to people paying hometown taxes to Omuta City, Fukuoka
Prefecture, we offer Mitsui Minato Club meal tickets and wedding

ceremony and banquet complementary tickets.

Please enjoy superb French cuisine produced by Grand Chef Sakai of French cuisine at theguest house of Mitsui, boasting a heritage of over 100 years.
* Applications are accepted through Furusato Choice, Rakuten Furusato Nozei,
Furunavi, etc.
For more information, search for

三井港倶楽部 ふるさと納税

Executive Chef Hatae of Mitsui Minato Club and Grand
Chef Sakai of French cuisine

24

These materials contain forward-looking statements that are in no way guarantees of future performance.
Future performance is affected by risks and uncertainties. Future performance may vary due to changing
assumptions and conditions in the business environment. These materials should not be relied on as thesole source of information, and should be used with discretion. Mitsui Matsushima Holdings Co., Ltd. is in
no way responsible for any damage caused as a result of relying on or using these materials.

25