Mitsui E&S GroupINTEGRATED REPORT
2020
Year ended March 31, 2020

Contents
Company Philosophy

To continue our role as a trusted
company, and as a trusted
member of society

2 The History of Mitsui E&S
4 Message from the CEO
8	Mitsui E&S Group Business
Revival Plan
10 11 years summary
12 Business Segment Overview
14 Business Segment Topics

Mitsui E&S Group INTEGRATED REPORT 2020
Under our Company Philosophy of “To continue our role as a trusted company, and as a trusted member of society” we at
Mitsui E&S Holdings Co., Ltd. uphold our corporate philosophy as we strive to be a company that uses manufacturing to

16	Directors, Auditors andOrganization

contribute to social development and preserve the global environment. We started creating the “Mitsui E&S Group Integrated Report” (the report) from 2019 (’19/4 - ’20/3), aiming to provide our stakeholders with a deeper understanding of ourbusiness model and the process of realizing long-term sustainable corporate value improvement.

18 Corporate Governance

The report focuses on information that has a significant impact on corporate value. A wide range of IR information and
ESG-related information is disclosed comprehensively on our website, aiming for further improvement so that various
stakeholders in Japan and overseas can understand our unique business model.

Positioning of “Mitsui E&S Group Integrated Report”
Financial Information

Non-Financial Information

INTEGRATED REPORT

Coverage of the report
This report covers the period from April 2019
to March 2020.
(However, some sections include information for April
2020 and thereafter.)

21 Environmental Preservation
22 Safety Measures
24 Work Environment

Issued in: September 2020
Financial Statement Report
Website Pages[ IR/Company Information ]https://www.mes.co.jp/english/investor/

Guidelines used as reference
Website Pages[ About Mitsui E&S Group ]https://www.mes.co.jp/english/company/• Ministry of the Environment, Environmental
Reporting Guidelines• GRI, Sustainability Reporting Guidelines
Version 4• ISO 26000

Mitsui E&S Holdings agrees with the SDGs (Sustainable Development Goals), an international goal set
by the United Nations to solve global issues.

Disclaimers
This report contains plans and forecasts that were current as of the date of publication, as well as
descriptions about our future business activities based on our management plans. Please note that
this information is based on the currently available information, and the actual contents of ourbusiness activities may differ from the contents of this report due to future circumstances or theenvironment, or due to unanticipated events that may occur after the publication of this report.

• Ministry of Economy, Trade and Industry,
Guidance for Collaborative Value Creation

Inquiries

26 Human Assets
28 Social Contributions
29 Communication
30 Company Profile

Mitsui E&S Holdings Co., Ltd. Corporate
Planning Division

Contact form
https://www.mes.co.jp/english/contact.html

Mitsui E&S Group INTEGRATED REPORT 2020

1

The History of Mitsui E&S

The Mitsui E&S Group was founded in 1917 by Teijiro Kawamura (the General Manager of the Ship Division of former Mitsui & Co., Ltd. at the time), who felt strongly that Japan needed a shipbuilding industry.
Since then, we have expanded into businesses such as diesel engines and plant engineering, and havegrown into a comprehensive heavy equipment manufacturer while supporting the modernization ofJapan and the development of society.

Founding
Established as the Shipbuilding Divisionof former Mitsui & Co., Ltd.
“Because Japan is a seafaring
nation, it is natural that the nation
should be founded on shipping.’’
In 1917, Teijiro Kawamura, who was theGeneral Manager of the Ship Division offormer Mitsui & Co., Ltd. at the time, wasacutely aware of the need to have a shipyard
and a repair factory and submitted a petition
to the president. The Mitsui E&S Group
commenced from his passion.

•Launched the world’s first large-size automatedvessel, “Kinkasan Maru”

Teijiro Kawamura

1924	Completed the Japan’s first ship driven by diesel
engine “Akagisan Maru”
1926	Entered the technical licensing agreement with Burmeister & Wain A/S of Denmark for marine diesel
engine production

2

Mitsui E&S Group INTEGRATED REPORT 2020

1961

2000–
Globalization
For sustainable growth
Strengthening energy-saving
and environmentally-friendly
technologies

Towards thenext 100 years
2018 •Shift into holding company structure
and changed its name to “Mitsui
E&S Holdings”

2003 Listing of MODEC, Inc.
2008	Achieved accumulated production of 700 units in
PC hybrid pontoon
2009	Accumulated Orders of Reciprocating compressor
reached 1,000 sets

1967	Completed Japan’s first shore-side container crane2014	Shipped 300th Portainer, a quayside gantry crane1976	Achieved an aggregated total of 10 million bhp in the
Mitsui-B&W diesel engine production2015	Completed the “ME-GI”, Japan’s first marine
diesel engine fueled by natural gas

1987	Built “Polyconfidence”, the world’s largest floating
hotel at sea

2017	Established “PT. MES Machinery Indonesia”, acontainer handling crane manufacturing company
in Indonesia

1988	Acquired PACECO’s crane trading rights, shares

Leading the shipbuilding industry

1926

Expand business domains
Grows to become comprehensive
heavy machinery manufacturer
1961	•Entered the technical licensing agreement with
PACECO., Inc. concerning the PACECO type container
cranes

1917–

1924

1950–

2018–

•Cumulative diesel engine production
reaches 100 million horsepower

1992	Completed the most advanced diesel engine factory at
Tamano Works
1996	Received the first order for a high-power light-weightcompact ADD diesel engine, intended to serve as main
generator engine for a large oceanographic vessel ofthe Maritime Safety Agency

1961

1967

2018

1987

Mitsui E&S Group INTEGRATED REPORT 20203

Message from the CEO

We will make an all-out effort to ensure
the execution of the Mitsui E&S Group
Business Revival Plan to increase theGroup’s corporate value.

Moving the Business Revival Plan forward
For the Mitsui E&S Group, the fiscal year ended March 31, 2020 marks the final year of the 2017 midterm business plan (the management plan from April 2017 to March 2020). In order to achieve the MESGroup 2025 Vision, which lays out the future vision and long-term direction of the Group and the ideal
state of the company over the seven years leading up to fiscal 2025, we have been advancing our goalsof a reinforced business foundation and deepened Group management by focusing on the three businessareas of Environment & Energy, Marine Logistics & Transportation, and Social & Industrial Infrastructure.
However, the Group’s financial base was significantly damaged as a result of a series of large
losses from overseas EPC projects in the engineering business, which created an urgent need torecover capital and secure funds.
To that end, in May 2019 we developed a new Mitsui E&S Group Business Revival Plan. During theperiod of the Business Revival Plan, which runs from April 2019 to March 2023, we will work to shore up
our financial base by reinforcing our financial and profit structure and reforming our business structure.
The Business Revival Plan was partially revised in November 2019 to expand and accelerate necessary measures such as the disposal of assets and reduction of fixed costs in the wake of additional large
losses in the second quarter from a civil engineering construction project for a thermal power plant in
the Republic of Indonesia. As a result, we have reached a point to secure funds to a certain degree.
Going forward, we will continue to work to get through these difficult times and increase theGroup’s corporate value by accelerating our efforts to maximize MES Group strengths collectively
through the reorganization of Group businesses.

Results for the fiscal year ended March 31, 2020
The Group’s net sales in FYE Mar. 2020 increased by ¥129.9 billion (19.8%) compared to the previous
fiscal year to ¥786.5 billion thanks to increased sales (calculated using the percentage of completion
method) in the ocean development sector as well as gains in the ship and machinery divisions. Despite
the improvements and loss reductions in the Ship, Machinery, and Engineering divisions, operating
losses amounted to ¥62.1 billion (compared to losses of ¥59.7 billion in the previous fiscal year) due
mainly to losses posted by MODEC, Inc. in overseas projects in the ocean development business. Ordinary losses amounted to ¥60.5 billion (compared to losses of ¥50.5 billion in the previous fiscal year)
due to a decrease in equity method investment income in addition to the posted operating losses. Net
President, Representative Director
CEO
Ryoichi Oka

losses attributable to parent company shareholders amounted to ¥86.2 billion (compared to net lossesof ¥69.6 billion in the previous fiscal year) as a result of a decrease in profits attributable to non-controlling interests in addition to the posted net loss before tax adjustment.
New orders received in FYE Mar. 2020 increased by ¥286.7 billion (40.4%) compared to the previous fiscal year to ¥996.8 billion thanks to orders for large-scale projects received by our subsidiary
MODEC, Inc.

Business environment
The global economy has slowed sharply due to the impact from the spread of COVID-19. In the UnitedStates, the economy was continuing to recover against a backdrop of favorable employment andincome environments. However, the arrival of the pandemic on top of US-China trade friction has
resulted in stagnation of corporate activity and deterioration of the labor market, posing a risk of recession. Similarly, in Europe the economy had been rebounding thanks to improved employment andincome environments, but in addition to the UK’s vote to leave the European Union, there are now concerns over sluggishness in the service industries and personal consumption. In Asian countries, there
are concerns about the impact on neighboring countries of the economic downturn in China caused by
the suspension of factory operations and self-isolation of the population at home. In Japan too, there is
growing concern about an economic downturn caused by the contraction in consumer sentiment andeconomic activity due to self-isolation at home, business shutdowns, and similar measures.

4

Mitsui E&S Group INTEGRATED REPORT 2020

Mitsui E&S Group INTEGRATED REPORT 20205

Message from the CEO

Future outlook

we are strengthening human resources in our Research & Development and After-Sales Services units.

Against this backdrop, the consolidated earnings forecast for the fiscal year ending March 31, 2021

Going forward, we will pursue overall expansion in marine propulsion systems, strengthening of our LSS

predicts net sales of ¥630 billion, operating loss of ¥10 billion, ordinary loss of ¥7 billion, and net income

business, and enhancement of profitability through overseas business expansion.

attributable to parent company shareholders of ¥0.

Reorganization of the shipbuilding and social infrastructure businesses

In the Ship segment, sales are expected to decrease due to a decrease in the number of ships
built, while operating losses will improve due to improved profitability and reduced fixed costs.

In the shipbuilding business, the new merchant shipbuilding business at Chiba Shipyard will be withdrawn, and the portfolio will shift to a structure that focuses on the businesses of energy engineering

In the Ocean Development segment, there have been orders for new projects, but we expect aand contract construction projects for merchant ships. With respect our ship business at the Tamano

decline in revenues and profits caused by delays in construction work due to the impact of COVID-19

Shipyard, a basic agreement was signed with Mitsubishi Heavy Industries, Ltd. to start discussions on

and revisions to oil companies’ development plans due to falling crude oil prices.

the transfer of this business. In the future, the two companies will carry out a detailed study, and once

In the Machinery segment, the production of container cranes and large marine diesel engines, forwhich we get many inquiries, is expected to gain comparable sales profit to FYE Mar. 2020. In terms of
profit and loss, however, the recovery in ship prices is still slow and the downward pressure on productthe details, scope, and method of transfer of the specific targets have been finalized, we aim to complete the transfer by October 2021 (as of the June 12, 2020 announcement).
In the social infrastructure business, we will consolidate the resources of construction projects

prices is expected to continue, leading to a decline in profits. Note that following the reorganization insuch as a bridge construction project, for example, to strengthen competitiveness and expand thethe Business Revival Plan, the social infrastructure business was shifted from the Machinery segment

market size through collaboration.

to the Other segment.

Reorganization of the engineering businessIn the Engineering segment, sales are expected to decrease due to the disposal of businesses andWe established an Engineering Business Management Office directly under the President to restructure

the slowdown in civil engineering and construction work at large coal-fired power plants overseas due tothe governance structure of the engineering business, and we are currently working on execution of thethe impact of COVID-19. In terms of profit and loss, this represents a significant improvement from thepower generation civil engineering projects already on order and improving profitability. We are also

operating losses suffered in the current fiscal year; however, it is likely that operating losses will continue

proceeding with the disposal of engineering businesses such as chemical and power generation plants

due to temporary operating shortfalls associated with the restructuring of the business.

and the reallocation of personnel associated with those businesses.

Consolidated earnings forecast for fiscal year ending

To all our stakeholders

March 31, 2021 (issued May 12, 2020)

550 –750 billion
Net sales:¥ 630 billion
Operating income: ¥ 10 billion
Ordinary Income: ¥7 billion
New orders:¥

Impact of the spread of COVID-19 on businessperformance
We have estimated the impact of the spread of
COVID-19 on business performance based on
the information currently available to us; however, if the social and economic impacts are
greater or more prolonged than expected, thismay affect our earnings outlook.

In the fiscal year ended March 31, 2020, there was an urgent need to restore a financial base that wassignificantly damaged as a result of large losses from overseas projects in the previous fiscal years,
meaning that we continued to pay no year-end dividends. I would like to give my most sincere apologies
to all our shareholders for the inconvenience and concern caused. Today, the Group faces an unprecedented crisis due to the impact of COVID-19. However, the Group cannot afford to hunker down andride out this storm. We will make an all-out effort to increase the Group’s corporate value by steadily
executing the Mitsui E&S Group Business Revival Plan to strengthen our financial and profit structure,and by moving forward with the reform of the business structure, for example by exiting from unprofit-

Efforts toward business revitalization
In May 2019, the Group established the Mitsui E&S Group Business Revival Plan, which positions thefour-year period ending in March 2023 as a business revival period for restructuring the business foun-able businesses and developing growth businesses that will be our new primary sources of profit.
I would like to ask all our stakeholders for their continued support and for their further assistanceand encouragement.

dation and regaining energy for the future. We are making an all-out effort to implement a variety ofmeasures aimed at restoring our financial base and strengthening our profit structure.
Strengthening our financial and profit structure
As a result of the sale of businesses and assets, mainly in the fiscal year ending March 31, 2020, we havereached a point to secure funds to a certain degree. Going forward, we will continue to work to improve
profit margins through the reduction of fixed costs and the disposal and exit from unprofitable businesses,
and to further strengthen our financial and profit structures by promoting reforms in our business structure.
Reforming the business structure
Out of the three areas of MES Group 2025 Vision, Environment & Energy, Marine Logistics & Transportation, and Social & Industrial Infrastructure, we will in particular position machinery and ocean development
as our focus businesses to strengthen. Meanwhile, in the shipbuilding and social infrastructure businesses, we will aim for growth through collaboration and alliances with companies outside the Group.
Strengthening the machinery and ocean development businesses
In parallel with the reallocation of personnel due to the reorganization of businesses within the Group,6

Mitsui E&S Group INTEGRATED REPORT 2020

Mitsui E&S Group INTEGRATED REPORT 20207

Mitsui E&S Group Business Revival Plan
(FYE Mar. 2020-FYE Mar. 2023)

The Mitsui E&S Group (the “Group”) recognizes the urgent need to recover from the significant damage to its financial baseBusiness Revival Plan Time Schedulecaused by losses on several large-scaled overseas EPC projects in the engineering business. The earnings from existing busiMBP17

nesses such as shipbuilding and engineering have also been declining, forcing the Group to exit from unprofitable businesses
and develop growth businesses that will be its new primary sources of profit. Against this backdrop, the Group has designatedthe four-year period beginning in FYE Mar. 2020 (’19/4 - ’20/3) as a business revival period for restructuring its business foundation, regaining energy for the future, and building a management structure that can withstand the headwinds.

2019/3
Reinforcement of financial structure•Sell-off of businesses and assets•Reduction of fixed cost

Outline of the Mitsui E&S Group Business Revival Plan

2020/3

2 Reform of Business• Sell-off of assets• Reduction of fixed costs(personnel and other expenses)• Disposal and withdrawal from unprofitable businesses• Concentration of resources in growthbusinesses

Structure

Revision of Business Revival Plan (announced in November 2019)• Additional sales of businesses and assets and acceleration of execution• Acceleration of business structure reform and collaboration with other companies on collaborative projects• Withdrawal from the domestic business of power plants which require heavy initial investment•Improve Return on Total Assets
Sales ordinary income ratio 4.0% × Total asset
turnover ratio 0.8x

Long-Term Strategy (Target for FYE Mar. 2025)•Improve Return on Total Assets
Sales ordinary income ratio 6.0%
× Total asset turnover ratio 1.0x

•Improve Ratio of Debt/Profitability
Interest-bearing debt EBITDA Multiples < 5.0x

• Achieve steady growth without pursuingeconomies of scale

Sell-off of the estate of Chiba Works and its businessContinuation

Reduction of expenses, etc.

Reduction of size of Group’s workforce

Continuation

Reorganization/Withdraw from unprofitable businesses•Enhancement of the Machinery and the
Ocean Development Business

Improvement of the product lineup of the Machinery Business•Reorganization of the Shipbuilding Business

Consideration of collaboration/ Conversion of Chiba Shipyard•Reorganization of the Social Infrastructure
Business

Reorganization of the Social
Infrastructure Business•Reorganization of the Engineering Business

Rebuilding of the Governance Structure• Improve capital efficiency through asset
sales and business restructuring

Reinforcement of Financial/Profitability Structures
Sell-off of Businesses and Assets

Command/Control•Business judgment and negotiation support by•President of Mitsui E&S Holdings Co., Ltd.
Strategy planning and negotiations

We are currently in the process of implementing
relocations and transfers of about 1,000 people
throughout the Group• Showa Aircraft Industry Co., Ltd. (March 2020)• Employee relocation inside our Group• Mitsui E&S Plant Engineering Co., Ltd. (March 2020)• Transfers outside our Group in association with the businesses
sold-off• Solicited 200 voluntary retirements in conjunction with the exitfrom commercial shipbuilding at Chiba Works• The estate of Chiba Works (April 2020)• Investment securities, etc.

Reform of Business Structure• Focus on the prospective product group for future earnings• Put projects for coal-fired power plant civilengineering construction work under thecommand and control of the Engineering
Business Management Dept. that is
directly managed by the President of
Mitsui E&S Holdings Co., Ltd.

External experts• Conduct reorganization of the Engineering
Business and related subsidiaries

Engineering Business• Conduct relocation of employees of theEngineering Business

Reorganization of business Relocation of employees

8

Execution of projects

Mitsui E&S Group INTEGRATED REPORT 2020

Subsidiaries of MES-E

Reduction of Fixed Costs

Achieved the target for strengthening capital byraising roughly 100 billion yen through the sell-off ofbusinesses and assets

President of Mitsui E&S Holdings Co., Ltd.

Projects for coal-fired power plant civil engineering
construction work

Completion of the projects of the coal-fired power plant civil engineering construction

Progress on Business Revival Plan (as of June 2020)

Improvement of the product lineup of the Machinery Business

MES-E

Consideration of collaboration/
reorganization of the production system• Improve profit margins by focusing onhigh value-added core areas and reducing
costs

Restructure the Governance Structure of the Engineering BusinessEngineering Business Management Dept.

2023/3Sell-off of the fixed assets and securities• Green Power Ichihara Co., Ltd. (April 2020)

Mid-Term Strategy (Target for FYE Mar. 2023)

2022/3Mid-term strategy• Solar power business and related assets(March 2020)

Numerical Targets

2021/3

Short-term measure

Reform of business structure

1 Reinforcement of Financial/
Profitability Structures

MBP20
Business Revival Plan

Reorganization of the Shipbuilding Business• Establish the Engineering Center for independent operation of
the engineering business in the design and construction ofmerchant ships

Reorganization of the Social Infrastructure Business• Transformation of the product portfolio from merchant ships tosteel structures in Chiba Works, where the shipbuilding business is scheduled to close in March 2021

• Promote cooperation with Sumitomo Mitsui Construction Co.,
Ltd. to strengthen competitiveness and expand business• Began discussions with Mitsubishi Heavy Industries Ltd. on thetransfer of the naval/patrol ship business• Consolidated subsidiaries involved in the social infrastructurebusiness were split off from Mitsui E&S Machinery Co., Ltd. as
independent companies and consolidated to Mitsui E&S Steel
Structures Engineering Co., Ltd. (effected on April 1, 2020)

Reorganization of the power generation business• Capital participation by Sumitomo Mitsui Construction Co., Ltd.
(basic agreement on May 13, 2020) will enhance the corporate
value of the subsidiary involved in the social infrastructurebusiness• Withdraw from the domestic business of biomass power
plants. Specialize in the O&M business• Withdraw from the wind power generation business

Mitsui E&S Group INTEGRATED REPORT 20209

11 years summary(¥million)

2020/3

2010/3

2011/3

2012/3

2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/3¥ 359,066¥ 499,695¥ 686,886¥ 662,556¥1,107,750¥ 959,784¥ 609,621¥ 516,577¥1,160,662¥ 710,127

Net Sales

765,989589,209571,852

577,093670,067

816,520805,413

731,464

703,216

656,504

786,477

Operating Income

43,00038,89531,42024,001

19,96913,298

11,813

8,304

r5,224

r59,703

r62,079

Ordinary Income

41,99936,21632,345

26,162

26,17914,89915,07814,8593,061

r50,502

r60,457

Net Income*

19,652

13,493

17,880r8,20742,854

9,463

7,599

12,194

r10,137

r69,599

r86,210¥r18,567¥ 29,223¥ 13,564¥ 47,182

29,802¥ r7,843

r3,555¥ 66,176¥ r37,213

2,147

r42,841

11,515

r12,100

r37,312r32,385

r34,599

r28,753

r9,046r130

84,125

r16,420

r13,618

25,07935,082

r22,813

r17,218

r4,797

r36,596

r12,601

66,046

46,912Financing Cash Flow (Loss)

23,825

r6,517

r32,415

r4,793

15,531

r4,374

48,216

19,401

r14,813

r53,340

r26,825

Cash and Cash Equivalents

114,196

79,79972,007106,192

111,926

94,664

135,747

115,620

86,311

97,408116,691¥ 180,154¥ 193,748¥ 209,631¥ 207,313¥ 323,608¥ 347,305¥ 343,853¥ 367,608¥ 356,837¥ 280,239

742,860

686,325

655,929

660,397

932,896

1,074,563

1,094,042

1,096,735

1,029,222

999,100

840,380

197,778

172,033

144,565

148,257

187,833

188,314

239,873

265,176

255,276

204,617173,934

EPS (Net Income per Share)¥ 237.17¥ 162.91¥ 215.90¥ r 99.14

150.87¥ r125.42¥r861.09¥r1,066.47

BPS (Net Assets per Share)

1,937.52

1,984.03

2,191.74

2,122.39

2,666.42

2,928.59

2,904.80

3,097.79

2,958.83

1,973.91

796.36

Dividends per Share

5.0

4.0

4.0

3.0

2.0

2.0

4.0

3.0

—

—

—

Share Price at the year end*4

233

199

144

166

218

205

168

172

1,730

1,044

521

Shareholders’ Equity to Total Assets (%)

21.6

23.9

27.7

26.6

23.6

22.0

21.5

22.8

23.2

16.0

7.7

ROE (Return of Equity) (%)

13.1

8.3

10.3

r4.6

21.6

4.1

3.2

5.0

r4.1

r34.9

r77.0

D/E Ratio

1.2

1.0

0.8

0.8

0.9

0.8

1.0

1.1

1.1

1.3

2.7

Employees (Consolidated)

10,563

10,326

10,025

9,881

12,055

12,291

12,705

13,171

13,421

13,607

13,408

Total Energy Consumption (TJ)*5

1,460

1,445

1,360

1,290

1,175

1,565

1,300

1,305

1,395

1,360

—*

CO2 Emission (10,000t)

6.84

6.66

6.38

6.70

6.90

8.14

8.13

8.20

8.60

8.14

—*

Financial Results
New Orders Received

1¥996,848

Cash Flow

Operating Cash Flow
Investing Cash Flow (Loss)
Free Cash Flow¥

14,499¥15,167¥¥

Financial Position

Net Assets
Total Assets
Interest-bearing Debt*

2¥

105,355

Per Share Information*3¥

517.98¥116.26

¥

94.03

¥

Key Financial Indicator

Non financial Information*1 Profit (losses) attributable to owners of parent*2 Excluding lease liabilities*3 The Company consolidated shares on the basis of one new common share for every 10 common shares with an effective date of October 1, 2017. Share priceshown in 2018 is of after the consolidation.
*4 Each stock price is based on prices quoted in the first section of the Tokyo Stock Exchange.
*5 TJ: Tera Joule (=1012J)

10

Mitsui E&S Group INTEGRATED REPORT 2020

*The latest figures for the fiscal year ended March 31, 2020 will be posted on the website after September 2020.

Mitsui E&S Group INTEGRATED REPORT 202011

Business Segment Overview

Ship

Machinery
Main Products

Net Sales Composition (%)

Main Products

Net Sales Composition (%)

Bulk carrier

Marine diesel engine

Oil tanker

Gas turbine and gas engine co-generation system

LNG carrier

Process compressor

Research vessel / Training vessel

Top pressure recovery turbine (TRT) generating system

14.6

Fishery patrol vessel
High-speed vessel

25.5

Reactor / Heat exchanger
Rotary dryer / Coal moisture controller

Naval ship / Patrol ship

Portainer (Quayside Container Crane)

Submersible

Transtainer (Transfer Crane in Container Yard)
Container Terminal Management System,etc.

New Order (¥billion)
106.9

Net Sales (¥billion)

New Order (¥billion)

Net Sales (¥billion)

Operating Income (¥billion)
14.8

113.2

126.7

90.0

112.5

68.7

67.7

Operating Income (¥billion)

96.9

115.1

2.9

1.0
166.8

90.0

186.9 185.3 192.3 180.0

174.8 181.7 186.9

200.4

13.3
11.4

170.0

10.2

10.0

8.1

9.8
15.3
2017/3 2018/3 2019/3 2020/3 2021/3

2017/3 2018/3 2019/3 2020/3 2021/3(Forecast)(Forecast)

2017/3 2018/3 2019/3 2020/3 2021/3(Forecast)

Ocean Development

2017/3 2018/3 2019/3 2020/3 2021/3(Forecast)

2017/3 2018/3 2019/3 2020/3 2021/3

2017/3 2018/3 2019/3 2020/3 2021/3(Forecast)(Forecast)Engineering
Main Products

Net Sales Composition (%)

Main Products

Net Sales Composition (%)

Floating Production Storage andBiomass power plant

Offloading system (FPSO)

Biogas power plant
Wind power facility
Overseas power plant engineering &

42.3

8.9

construction
Environmental facility
Diesel engine generating plant
Petro-chemical plant
Inorganic chemical plant

New Orders (¥billion)

Net Sales (¥billion)

Operating Income (¥billion)
17.9

332.9

700.9

280.0

636.1
228.4
254.2

200.0−
400.0

191.2

11.3

New Order (¥billion)
149.9

14.9

Operating Income (¥billion)

180.4

1.0

222.5
58.9

2017/3 2018/3 2019/3 2020/3 2021/3(Forecast)

20.0
2017/3 2018/3 2019/3 2020/3 2021/3(Forecast)

69.0

48.2

69.6

17.3

20.0

30.0

2017/3 2018/3 2019/3 2020/3 2021/3

2017/3 2018/3 2019/3 2020/3 2021/3

92.7(Forecast)

162.6

127.8

4.9

2017/3 2018/3 2019/3 2020/3 2021/3

Net Sales (¥billion)(Forecast)Others(Forecast)Main Products
Real estate development
System development

12

Mitsui E&S Group INTEGRATED REPORT 2020

15.5

79.7 71.4
2017/3 2018/3 2019/3 2020/3 2021/3(Forecast)

Net Sales Composition (%)

8.7
Mitsui E&S Group INTEGRATED REPORT 202013

Business Segment Topics

Ship

Ocean Development

MachineryEngineering

Promoted improvement of autonomous ship operation technologies and development of new types ofvessels such as new gas fueled ships to awaken
demand from shipowners‘MODEC NOAH’, the next generation new built hulls
for FPSOs, has been developed by MODEC, Inc.
(MODEC) in collaboration with Mitsui E&S Shipbuilding Co., Ltd., and sales promotion activities havestarted to receive new orders of FPSOs with thisconcept

Produced 200 large marine diesel engines (3.67 million horsepower), including engines that comply with
Tier III NOx regulations

After incurring additional losses on a civil engineering construction project for a thermal power plant in
the Republic of Indonesia, we carried out a cost
review with external experts and are now focused on
construction progress hree FPSO projects for offshore Brazil and AustraliaThave been awarded by clients xpansion of business through aggressive sales ofE
the LSS business (Life-cycle Solution Service andCustomer Oriented Service) roactively pursued orders for vessels such as navalP
and governmental ships, and fishery patrol vesselsthat are expected to be ordered on an ongoing basis
 tarted business operations of our shipbuilding joint
Sventure in China (Jiangsu Yangzi-Mitsui Shipbuilding
Co., Ltd.) ecided to close the shipbuilding business at Chiba
D
Shipyard (scheduled for end of March 2021) andreallocate resources to improve profitabilityIn addition to Southeast Asia, multiple orders werereceived for large container cranes for Africa andEurope o consolidate the environment business in one
Tcompany, all environment-related business wastransferred to Mitsui E&S Environmental Engineering
Company, Limited.
 e completed delivery of a low-density polyethyleneWplant to the U.S. (Lake Charles, Louisiana)
 e made progress on business restructuring andW
disposal of subsidiaries and businesses and decided
to withdraw from new biomass power generation
and wind power construction projects

opics

opics

opics

opics

Christening and ceremonial launching of theocean surveillance ship “Aki”

Orders received for five FPSOs*

Order for ship-to-shore cranes in Sweden

Completion of construction of Hiuchi Clean
Center in Saijo, Ehime Prefecture, JapanOn January 15, 2020, a naming ceremony and ceremonial
launching of an ocean surveillance ship for Japan’s Ministry of
Defense were held at Mitsui E&S Shipbuilding Tamano Shipyard.
The vessel was christened “Aki” and its guy rope was cut by
Commandant, Kure District of the Japan Maritime Self-Defense
Force. The Aki is the third Hibiki-class ocean surveillance shipbuilt by Mitsui E&S, following the Hibiki and the Harima.
The ship is equipped with a full SURTASS (Surveillance
Towed-Array Sensor System) and adopts the SWATH (Small
Waterplane Area Twin Hull) type, which is well suited to its
mission of ocean-based intelligence gathering.
The ship is scheduled to be delivered in March 2021 after
we complete outfitting work and sea trials at the wharf.

Backed by the trust and expectations of its clients, oil companies around the world, MODEC has established its position as aleader in the industry by winning orders for five FPSOs.
The FPSO project, for the Barossa gas field offshore Australia, amounts to one of the largest gas FPSO projects in theentire FPSO industry. In addition, the company selected to provide the memorable FPSO by Woodside Energy, a major Australian energy company, for the first offshore oil development
project off the coast of Senegal, West Africa. The other three
FPSO projects, for offshore development in Brazil, reflected
MODEC’s presence as the leader in the Brazilian market.

Mitsui E&S Machinery Co., Ltd. received an order from Yilport
Holding Inc. of Turkey to supply three Mitsui-Paceco cranes(ship-to-shore gantry cranes) to their Gavle Terminal in Sweden.
Port of Gavle in central Sweden is a thriving port for theexport of high-quality steel. This capital investment will enable
the terminal to increase its container handling capacity. The
Portainer gantry cranes to be delivered to Gavle Terminal support 22 rows of containers and are large enough to accommodate 14,000-container ships. The state-of-the-art cranes areequipped with a truck position detection function and a semi-automatic cargo handling function.
This represents the first Portainer order in Europe. Moving
forward, Mitsui E&S will aim at business expansion in Europe
taking advantage of this achievement.

Mitsui E&S Environmental Engineering Company, Limited (awholly owned subsidiary of Mitsui E&S Engineering) announced
the completion of construction of the Hiuchi Clean Center,
which was commissioned by Saijo City in Ehime Prefecture, inMarch 2020.
This new, city-operated facility was established to address
the aging of the existing sewage treatment facilities and fluctuations in capacity and quality of treatment. It is an environmentally friendly facility that treats waste safely and hygienically, forexample by converting sludge into an auxiliary fuel for recycling.
Mitsui E&S Engineering is committed to using its advanced
technologies and solutions to contribute to a sustainable society
and the preservation of the environment in harmony with local
communities.

Christening and ceremonial launching of the ocean
surveillance ship “Aki”

Rendering of MODEC’s FPSO for Sangomar field offshore Senegal

Gavle Terminal in Sweden

Hiuchi Clean Center in Saijo

Mitsui E&S Shipbuilding Co., Ltd.

14

 osses were incurred on a construction project of an
LFPSO for Mexico and a decommissioning work for an
FPSO offshore Brazil, and loss minimization steps
were taken

 ontinued capital investment in gas-fueled marineC
diesel engines that comply with SOx regulations andgreenhouse gas reductions

Mitsui E&S Group INTEGRATED REPORT 2020

*Includes some orders received in FYE Dec. 2020 (’20/1 - ’20/12) of
MODEC.

MODEC, Inc.

Mitsui E&S Machinery Co., Ltd.

Mitsui E&S Environment Engineering Company, Limited

Mitsui E&S Group INTEGRATED REPORT 202015

Directors, Auditors and Organization(As of June 25, 2020)

Directors

Corporate Auditor

President, Representative Director

Vice President, Representative Director

Ryoichi Oka

Keigo Matsubara

CEO and in charge of Audit Dept. and Engineering Business Management Dept.

Assistant of President, CFO*1 and in charge of Finance & Accounting Dept.

Having outstanding insight into the machinery and systems business, as well as
excellent managerial ability cultivated through experience and proven track record as
General Manager of the Machinery & Systems Headquarters, Director, and as Presidentof Mitsui E&S Machinery Co., Ltd., etc., Ryoichi Oka serves as President, Representative Director strengthening the Group’s financial and profit structure and promoting
structural reforms of the Group successively.

and IR Dept.
Having vast insight with regards to business activities and general management basedon his experience as manager of a general trading company, as well as expert knowledge cultivated through years of experience in finance and accounting, Keigo Matsubara
serves as Vice President and Director responsible for strengthening the Group’s
financial and profit structure successively.

Director

Director

Shoichi Taguchi

Taketsune Matsumura

CCO*2 and in charge of Legal Dept. andGeneral Manager of Human Resources &General Affairs Dept.

CISO*3 and in charge of Corporate
Planning Dept.

Having outstanding insight into the machinery and systems business, as well as
excellent managerial ability cultivated throughexperience and proven track record as
General Manager of Machinery Factory,
Machinery & Systems Headquarters, General
Manager of Works, President of Mitsui E&S
Business Services Co., Ltd., etc., Shoichi
Taguchi serves as Director successively.

Having outstanding insight into the shipbusiness operation and corporate planningacquired through his experience and proventrack record as Director of MODEC andGeneral Manager of the Corporate Planning
Dept. of the Company, Taketsune Matsumura is well-qualified to be newly
appointed as Director.

Corporate Auditor

Corporate Auditor

Hiroki Higuchi

Yuichi Shiomi

Hiroki Higuchi has been appointed as
Corporate Auditor for his ability to conduct
appropriate audits by taking advantage of
his understanding of the realities of theGroup from his experience and results as
General Manager of the Auditing Dept., andfor his insights into the Auditing Dept.

Yuichi Shiomi has been newly appointed as
Corporate Auditor for his ability to conduct
appropriate audits by his distinguishedknowledge of finance & accounting. In
addition, he conducted role in the management of the Company as General Manager
of Finance & Accounting Dept. and CFO of
the Company, and President and Representative Director of Mitsui E&S Business
Service Co., Ltd. and is familiar with its
actual situation of the Company. He has
sufficient and overall experience andknowledge of financial affairs and accounting acquired through his work for financial
affairs and accounting for a long period.

Outside Corporate Auditor

Outside Corporate Auditor

Koichi Tanaka

Seiichi Ueno

Koichi Tanaka has been successively
appointed as Outside Corporate Auditor for
his ability to conduct appropriate audits
from an objective standpoint based on his
considerable knowledge of finance andaccounting from his many years in those
fields, and for his vast insight on businessactivities and overall management based
mainly on his experience as a manager of ageneral trading company.

Seiichi Ueno has been newly appointed as
Outside Corporate Auditor for his sufficient
discernment of economic trend and overall
corporate management acquired throughhis experience as an executive of a financial
institution, that he is capable of carrying out
audit properly based on an objective pointof view.

Mitsui E&S Holdings Co., Ltd. Organization
President

Office of Audit & Supervisory Board
Engineering Business Management Dept.
Corporate Planning Dept.

Strategic Planning Sect.
Internal Control Sect.

Outside Director

Outside Director

Toshikazu Tanaka

Yoshio Haga

Having extensive knowledge and results inbusiness activities and overall business
management both at home and overseas
cultivated over many years running a major
synthetic chemical company, Toshikazu
Tanaka has been successively appointed as
Outside Director to receive his advice froma broad perspective with regards to overallmanagement of the Group, and to expect
monitoring and supervisory functions ofmanagement from an independent
standpoint.

Having sufficient and overall experience andknowledge of domestic and overseas
business operation and corporate management acquired as an executive of a major
paper company for a long period, Yoshio
Haga has been newly apointed as Outside
Director to advise the overall managementof the Group with a broad perspective andto oversee and supervise management of
the Group from an independent position.

Information Security Sect.
Auditing Dept.
Human Resources & General Affairs Dept.

Public Relations Sect.
Secretariat
General Affairs Sect.
Human Resources Sect.
Environmental Safety Sect.
Tamano General Office
Mitsui Hospital*1 CFO : Chief Financial Officer*2 CCO : Chief Compliance Officer*3 CISO : Chief Information Security Officer

Legal Dept.
Finance & Accounting Dept.

Chiba General Office
Oita General Office

IR Dept.

16

Mitsui E&S Group INTEGRATED REPORT 2020

Mitsui E&S Group INTEGRATED REPORT 202017

Corporate GovernanceInside Outside

Basic philosophy● Systems of Corporate Governance and Internal Control

Based on its Company Philosophy, Business Policy, and ManElection/Dismissal

growth and further improve its medium- and long-term corpoa company and takes into account the global environment,

Audit

Directors (Board of Directors)

working to ensure that all of its stakeholders ﬁnd the company
Election/Dismissal,
Oversight

system for making fair and transparent decisions promptly andElection/Dismissal

Decision on contents ofagendas concerning election or
dismissal

Discussion of importantmatters, reports on
business executions

Auditors. As of June 25, 2020, the Company’s Board of Directors
consists of 6 members, 2 of whom are part-time Outside Directors.

Accounting
Auditors

Corporate Auditors(Board of Corporate Auditors)

ReportReportbeneﬁcial to society. To this end, we have established a

The Company’s Board of Corporate Auditors consists of 4 members,

4

2

2

2 of whom are part-time Outside Corporate Auditors.

Audit

ment Committee as a management meeting structure to execute business operations based on basic policy determined by the
Board of Directors. The Group Management Committee is composed of full-time directors and presidents of major subsidiaries

Personnel
Advisory
Consultation
Committee(Advisory bodyto the president) Recommendation

within the group, and the Management Committee is composed of full-time directors. The Group Management Committee

Advisory
Committee(Advisory body Recommendation
to the president)<Management policy>
Build further satisfaction for our customers
Provide safe and effective workplace environment for employees
Contribute to the development of society
Pursue proﬁt for the longevity of the company

Instruction/Report

President (CEO)Compensation Consultation

Deliberation/
Report<Business policy>
To fulﬁll expectations and foster trust in people and society as amanufacturing company that offers products and services representing the culmination of our global business experience and yearsof advanced technology development in a wide range of ﬁelds

Instruction

Management
Committee<The Board of Directors>
Meet 12 times on a regular basis and 8 times on a temporary basis to decide important matters and supervise business execution. The Board of
Directors also reviews, when necessary, basic policy for building internal control systems.

Discussion

Group
Management
Committee

Instruction/
ReportAuditing
Department[PermanentCommittee]

LawyerGroup
Compliance
Committee(Help line) ystems of Corporate Governance and InterS
nal Control

Total Risk
Management andInternal Control
Committee

Special Crisis
ControlCommittee*

Audit*To act in case ofcontingency

Divisions/Departments of
MES and Subsidiaries

that a governance system in which experienced outside directors monitor the performance of directors’ duties from a man-

<The Group Management Committee>
Meets four times with discussions focused on the direction of the mid-term and long-term business plans for the entire Group as describedabove.
<The Management Committee>
Meets 12 times on a regular basis and once on a temporary basis to deliberate on business execution for each business as described above.

Directors’ compensation<Policy on determining the amount of remuneration for directors of the company>
Directors’ compensation is based on the amount determined by each position within the limits approved at the Shareholders’ Meet-

Investigation
Audit

Along with enhancing the effectiveness of our auditing functions through corporate auditors, the Company has determineddiscusses on the direction of the mid-term and long-term business plans for the entire Group. And at the Management Committee, deliberations are made on each business execution of this management directionality.

Audit

Consultation/Reporting

Employees of the Company Group consistingof MES and Subsidiaries, and Clientsagement perspective is appropriate for the Company’s line ofbusiness as a manufacturing company. The Company has
therefore adopted the current corporate governance system.
The basic policy on construction of our internal control system can be found here:

Internal Control and Risk Management Systeming, taking into account the degree of contribution of directors, such as by reflecting their performance within the Company. Remuneration consists of a basic monthly salary in accordance with the director’s position, compensation linked to the Company’s stock
price, and a profit-based compensation linked to the Company’s consolidated results. Compensation for corporate auditors is determined by consultation with the corporate auditors with reference to directors’ compensation, etc., and within the limits of remuneration approved at the Shareholders’ Meeting. In determining the remuneration of the directors of the Company, an arbitrary
Compensation Advisory Committee has been established, which deliberates and reports on directors’ compensation policy andcompensation system. The committee also confirms whether the level of compensation and parameters for deciding compensation
are in accordance with recommendations. Based on this, the president submits the compensation system and parameters for
deciding compensation to the Board of Directors. The committee consists of two independent outside directors, the president anda representative director appointed by the president, and is chaired by an independent outside director.

In order to build a Company-wide framework to promote the internal control system in accordance with the CEO’s instructions, wePosition

Number of Directors/Auditors

Total Amount of Remuneration, etc.

have established a Total Risk Management and Internal Control Committee chaired by the director in charge of corporate planning.

Directors (of which are outside directors)

10*1 (2)¥123 million (¥18 million)

Corporate Auditors (of which are outside auditors)

4 (2)¥75 million (¥18 million)

Total

14

¥198 million

The committee met four times in FYE Mar. 2020(’19/4-’20/3), and in addition to the risk management system, it deliberates on such things as the re-examination of the Company’s corporate governance in line with the Corporate Governance Coderevised by the Tokyo Stock Exchange, and responds to the internal control reporting system for previous financial reports. Proposals and reports based on the results of the committee’s deliberations were made to the management meeting structure andthe executive officers of the Company including CEO as appropriate.

Mitsui E&S Group INTEGRATED REPORT 20202

In addition to the Board of Directors, the Company has established the Group Management Committee and the ManageAudit

boldly, under which we continuously strive to enhance our

18

Corporate Auditors

company with a Board of Corporate Auditors and with Accounting

Election/Dismissal

rate value. It recognizes the importance of the social nature of<Company philosophy>
To continue our role as a trusted company, and as a trusted
member of society

Directors

The Company adopts a corporate governance system in the form of a
Shareholders' Meeting

agement Policy, Mitsui E&S aims to ensure its sustainablecorporate governance.

Governance system*1. The above includes four directors who retired at the conclusion of the 116th Annual Shareholders’ Meeting held on June 26, 2019, and excludes four directors who
receive no remuneration.
*2. The total amount of remuneration for directors does not include employee salaries for those directors who also serve as employees.
*3. At the 107th Annual Shareholders’ Meeting held on June 25, 2010, it was decided that the maximum remuneration for directors shall be within ¥630 million peryear (excluding employee salaries), and the maximum amount of remuneration for corporate auditors shall be within ¥90 million per year.
*4. In addition to the above, a compensation linked to the Company’s stock price of ¥2 million was paid to one director who retired at the conclusion of the 115th
Annual Shareholders’ Meeting held on June 27, 2018. Outside directors do not receive any compensation linked to the Company’s stock price.
*5. At the conclusion of the 110th Annual Shareholders’ Meeting held on June 27, 2013, the Company abolished the retirement bonus system for directors andcorporate auditors. It was decided that directors and corporate auditors who continue to serve after the conclusion of the 110th Annual Shareholders’ Meeting will
be paid a retirement bonus at the time of each director or auditor’s retirement, the amount of which corresponds to the time in office held up until the terminationof the retirement bonus system.

Mitsui E&S Group INTEGRATED REPORT 202019

Environmental Preservation

Corporate GovernanceInitiatives to improve compliance
Based on the Group Compliance Management Regulations, the Group Compliance Committee was held twice in FYE Mar.
2020 to exchange and share information across the whole Company in order to strengthen compliance within the Company andits subsidiaries. In terms of compliance with antimonopoly laws, the Group Compliance Committee is continuously making
thorough efforts to monitor such compliance.
Regarding compliance with the Corporate Code of Conduct, we conducted compliance training for newly hired employees
as well as management professionals and of subsidiaries, and continued education and awareness activities for executives andemployees of the Company and its subsidiaries.

Mitsui E&S Group Global Environmental Philosophy
The Mitsui E&S Group’s approach to global environmental preservation is introduced on our website

Mitsui E&S Group Global Environmental Philosophy / Mitsui E&S Group Global Environmental Action Guidelines /Environmental Accounting (Non-Consolidated)
https://www.mes.co.jp/english/sustainable/environmental/

Environmental management data
https://www.mes.co.jp/english/sustainable/environmental/detail03.html● Number of employees who have completed compliance training
FYE2016

FYE2017

FYE2018

FYE2019

FYE2020(’15/4-’16/3)(’16/4-’17/3)(’17/4-’18/3)(’18/4 -’19/3)(’19/4 -’20/3)

1,573

941

1,308

489

1,547

Initiatives to Reduce Environmental Impact through Business<Helpline (Internal reporting system)>
In order to detect legal violations and other compliance issues at an early stage, we have established a helpline (internal reporting system) so that all executives and employees of the Company and its subsidiaries, as well as their business partners, may
contact the Company directly to discuss or report any issues. Based on our rules regarding the system for reporting complianceissues in accordance with the Whistleblower Protection Act, we will respond appropriately in the event of any reports.

Expansion of production of large marine diesel engines that comply with the NOx Tier III regulations
As part of its efforts to develop technologies that comply with environmental
regulations and deploy them in actual equipment, Mitsui E&S Machinery,
which boasts the top market share in large marine diesel engines in Japan,
has developed the world’s first built-in exhaust gas recirculation (high-pressure
EGR) system using the world’s largest test diesel engine installed in the
Tamano Machinery Factory.

● Compliance system

The company’s high-pressure EGR system cools and cleans a portion of
the exhaust gas from the engine and recirculates it back into the scavenging

President

Management Meeting Structure

Nominated fromamong the directors

Instruction

pipes, thereby reducing the oxygen content of the scavenged air and significantly suppressing NOx formation during combustion. Compared to other

ReportReportDirection and supervision

Directionandsupervision

Group Compliance Committee

Mitsui E&S
Shipbuilding
Compliance Committee

LawyerGroup Compliance
Secretariat(Legal Dept.)
OpinionAdviceFYE Mar. 2019: 2 units

Auditing
Dept.

using a catalyst or reducing agent. In this way, we can build systems thatmeet the needs of a variety of customers.

(2 high-pressure EGR, 0 high-pressure SCR)FYE Mar. 2020: 14 units(13 high-pressure EGR, 1 high-pressure SCR)FYE Mar. 2021: 81 units(71 high-pressure EGR, 10 high-pressure SCR)

We developed and accepted orders for the “neo66BC,” a 66,000-ton, next-generation environmentally friendly bulk

Mitsui E&S
Engineering
Compliance Committee

carrier with low fuel consumption and improved performance

Reporting andconsultation(Helpline)

https://www.mes.co.jp/english/press/2019/0820_001292.html

Mitsui E&S Shipbuilding has completed the development of an advanced version of its next-generation eco-friendly ship, theSeminars andinformation
sharing

Mitsui E&S
Group
Directors

into the engine (built in).
We also support high-pressure SCR (Selective Catalytic Reduction), a

Picking up issues

Mitsui E&S Machinery
Compliance
Committee

Mitsui-MAN B&W engines
Production schedule and number of diesel enginesthat comply with the NOx Tier III regulations

technology that reduces NOx in exhaust gas through a chemical reaction

Compliance Officers (CO) of
Mitsui E&S Holdings Co., Ltd.
Mitsui E&S Shipbuilding Co., Ltd.
Mitsui E&S Machinery Co., Ltd.
Mitsui E&S Engineering Co., Ltd.

Mitsui E&S Holdings
Compliance
Committee

is possible because the main components of the EGR system are integrated

room design and ship construction process thanks to its compact size, which

Chief Compliance Officer (COO)

Direction, supervision andinformation sharing

Environmentally friendly large marine diesel engines

NOx control technologies, EGR has a relatively small impact on the engine

Investigation

Mitsui E&S Group Employees“neo66BC” 66,000-ton bulk carrier, that further improves fuel efficiency. The two ships ordered in FYE Mar. 2020 (’19/4 - ’20/3)
will be built at the Tamano Shipyard and completed in the second half of 2020 or later.
The neo66BC is the next-generation eco-friendly ship in ’the neo series’ of bulk carriers. Its wide-beam, shallow-draft
design provides excellent shipping flexibility and transportation efficiency. The advanced neo66BC adopts the latest main
engine model and new energy-saving equipment to further improve fuel efficiency. It adopts the Harmonized Common Structural Rules (H-CSR), new

opics
Mitsui E&S Group continues its traditional “Corporate Ethics Reinforcement Month” initiative. In FYE Mar. 2020 (’19/4-’20/3) we designated November as Corporate Ethics Reinforcement Month and carried out compliance-focused activities that month.
As part of this effort, we reached out within the group for collecting slogans to help reaffirm the importance of compliance, andannounced the slogan selected in November.
The compliance slogan for FYE Mar. 2020 (’19/4-’20/3), “Trust earned by continuing to comply with laws and regulations,” hasbeen posted at each workplace for one year to improve compliance awareness.

rules that increase the weight of the hull, even as it maintains the listed cargoweight of 66,000 tons of the original version. To comply with regulations on
sulfur oxides contained in exhaust gas, SOx scrubbers are available as an
option in addition to low-sulfur fuel oil.
This is the second ’neo series’ model to adopt the H-CSR, following theneo87BC. Going forward, Mitsui E&S Shipbuilding will continue to expand its
lineup of ’neo series’ models that adopt the H-CSR and will continue to develop
vessels that are environmentally friendly and offer high transportation efficiency.

20

Mitsui E&S Group INTEGRATED REPORT 2020

“African Batis,” a neo66BC-model 66,000-ton bulk carrier

Mitsui E&S Group INTEGRATED REPORT 202021

Safety Measures

Efforts to prevent labor accidents

By the end of March 2020, the following initiatives have been implemented.

Based on the MES Occupational Safety and Health Management System Manual, we maintain our basic policy on occupational

Specific initiatives

safety and health for the overall company declared by the employer (president). Based on this basic policy, we have developedand introduced the Company-Wide Occupational Safety and Health Management Plan. When we became a holding company
on April 1, 2018, we retained the previous basic policy on occupational safety and health as the policy of the overall group. We
will evolve this basic policy so that each operating company will take more meticulous, advanced measures for preventing labor
accidents under the new structure.

Cooperation with labor unions and government office-sponsored
events1. Mitsui E&S Federation of Labor Unions - Health and Safety AwarenessMonth (February)
2. National New Year Zero Accident Campaign, and New Year Road Safety
Campaign (Dec to Jan)
Monthly events
1. National Safety Week, and Health and Safety Emphasis Month (July)
2. National Occupational Health Week, and Occupational Health Month(October)Health and safety inspections
Health and safety inspection by the president of Mitsui E&S HoldingsOther
Health and safety slogan (solicited during the health and safety emphasismonth)
2020 Mitsui E&S Health and Safety Slogan“Be safe today and every day! Protect your family’s smiles”

Mitsui E&S Group 2020
Policy on Health and Safety Management
Reducing the risk of occupational accidents through risk assessment
1. Basic policy
Regarding corporate behaviors relating to safety andhealth, we will achieve the followings by instilling a safety
culture in each workplace and fostering human assets:(1) Safety ﬁrst principle, for manufacturing and engineering
practices as top priority to safety(2) Creating a comfortable workplace by proactively working on physical and mental health management

2. Targets
Safety Targets:
Deaths, serious injuries, or lost-worktime accidents: 0
Accident frequency rate: 0.5 or lessHealth Targets:
Work-related illnesses: 0
Non work-related injuries and illnesses: Days off work
frequency rate of 0.38% or less(Of which, mental health disorders are 0.11% or less)Based on its Occupational Safety and Health Management System (OSHMS), the Mitsui E&S Group strives to prevent work-re-

2. Passing on safety principles*
Actively communicate and build a good relationship that leads
to understanding on both sides, the communicator and the one*being communicated to, thereby achieving a safe working
environment.

lated accidents by identifying their risk of occurrence, estimating and evaluating their extent and frequency through risk assessments, taking countermeasures that give priority to the highest risk, and continuing our risk-reduction activities to reach a stage
where safety is an intrinsic part of our organization.

3. Pointing and calling
Pointing and calling out whether things are OK when perform-

Implementation of danger sensibility improvement training at the Safety Training Centers

ing a task is a way to reduce errors.

In April of 2007, MES opened the Safety Training Center at our Tamano Works. One of the factors that led to its establishment(2) Healthwas our growing number of MES retirees who were being replaced with young employees and workers from associated com-

1. Promote health management
Think about health from a management perspective and under-

panies. To reinforce the effect of safety training, employees experience 21 different dangerous situations as part of danger

stand health issues, strategically putting health management

experience training at this facility. In 2008, similar facilities were built at both our Oita and Chiba Works. We are now promoting

into practice.

and implementing danger experience training at each of these sites to improve danger sensibility of employees.

2. Promote mental health care
Create a good place to work by promoting these 4 types ofcare: 1. Self-care, 2. Line-care, 3. Care from occupational healthstaff, and 4. Care from resources outside of the workplace.
3. Promote a good work-life balance and measures against
overwork
Achieve a good work-life balance by implementing a system

3. High-priority issues(1) Safety
1. The 2S3TEI system of discipline and good habits
Implement the 2S3TEI system with thorough discipline
to form good habits.

and measures for optimizing work hours, reducing mental andphysical fatigue.

Ryoichi Oka
Mitsui E&S Holdings Co., Ltd.
President, Representative Director

Danger experience training

22

Mitsui E&S Group INTEGRATED REPORT 2020

Mitsui E&S Group INTEGRATED REPORT 202023

Work Environment

Establishment of the Mitsui E&S Group Health Management Declaration

Initiatives to create a healthy workplace

The Mitsui E&S Group shifted to a holding company struc-

Promoting collaboration between Group companies and health insurance society

ture in April 2018, taking a new step forward. While each

Mitsui E&S Group Health Management Declaration

Group company is required to have a spirit of independence
and reform to develop its business further, many issues
remain, and all companies must work together as a group tosolve these problems.
Under these circumstances, the health of our employees is the source of corporate vitality, and so we would liketo make the most of a corporate culture that values people,
a culture referred to as “Mitsui is People”.
In line with the management stance of realizing a safeand rewarding workplace, the Company established the

The Mitsui E&S Group aims to be a company that contributes to thedevelopment of society and the preservation of the global environment
through the power of manufacturing, based on its corporate philosophy “tocontinue to be a manufacturing company trusted by people and by society”.
“Safety first, health first” is the top priority and an important management
issue for continuing to be a manufacturing company.
The Company and health insurance society actively supports the maintenance and promotion of the health of employees and their families, andactively engages in health management with the aim of creating a safe,
comfortable and healthy work environment.

Mitsui E&S Group Health Management Declaration to fur-health insurance society to develop a variety of health promotion measures.
• Utilization of periodic health checkup results
Based on the results of periodic health checkups, the five Mitsui E&S Group companies provide specific health guidance toemployees at risk of any lifestyle-related diseases (with the approach and advice tailored to the support level of the individual),and personal guidance to those individuals at high risk to prevent any increase in severity.
• Workplace support for individual goals in Health Attack program
Since 2005, the Health Attack program has provided all Mitsui E&S Group company employees and their dependents withhealth support by having them select health challenges that are right for them from among a wide variety of courses once a
year, and then they work on their selected course for a period of three months prior to their periodic health checkup.
• Mental health measures
We systematically hold job-class-specific training programs, carry out stress checks, publish news on mental health issues, andther promote the maintenance and improvement of themental and physical health of each and every employee.

To promote health management across the entire Mitsui E&S Group, the company (as the employer) is working together with the

Ryoichi Oka
President
Mitsui E&S Holdings Co., Ltd.
July 1, 2019provide counseling, among other measures. As an example of one of these workshops, a solution-oriented communication
training program (Solution Focus) has been implemented at the Tamano Machinery Factory of Mitsui E&S Machinery from FYEMar. 2013 (’12/4-’13/3) to improve human relations in the workplace and employees’ state of mind, thereby helping to improve
productivity in the factory.
Mitsui E&S Holdings has also concluded a blanket contract so that employees from all Mitsui E&S Group companies (approx.
9,000 employees) and their families can utilize an employee assistance program (EAP) provided by an external resource (outsourced). This service provides consultations on physical and mental health and legal consultations via telephone, web, fax, or in

Priority Measures

1

Physical Health

one-on-one meetings, in strict privacy 24 hours a day. This EAP service has been continuously provided for more than ten years.
• Have health checks and based on their results take measures to prevent the onset of and not progress
lifestyle-related diseases• Implement the Health Attack program and health seminars in collaboration with health insurance societies• Sports days, softball tournaments, family festivals, etc. at works• Self-care: stress checks, mental health training

2

Mental Health• Line-care: Line-care training, solution-oriented communication training• Care by occupational health staff: interviews with occupational physicians, support for returning to work
after a leave of absence• Thorough health management through physician interviews for those who work long hours

3

Workplace Health• Ensuring holidays are reliably taken through the annual leave promotion month, recommended days fortaking annual leave, and designating memorial holidays• Efforts to improve the workplace environment for high-stress workplaces based on stress checks
Solution-oriented communication training

Health Attack program

Mitsui E&S Group counseling
hotlineopics
Announcement of recognition under the “2020 Certified Health and Productivity Management Organization Recognition Program (Large Enterprise Category)”
On March 2, 2020 the five Mitsui E&S Group companies (Mitsui E&S Holdings Co., Ltd., Mitsui E&S Shipbuilding Co., Ltd.,
Mitsui E&S Machinery Co., Ltd., Mitsui E&S Engineering Co., Ltd., Mitsui E&S Business Service Co., Ltd.) were certified by the Ministryof Economy, Trade and Industry and NIPPON KENKO KAIGI under the large enterprise category of the 2020 Certified Health and Productivity Management Organization Recognition Program. Following certification in 2018 and 2019, this is the third consecutive year for
our group to achieve certification.
Under the management policy, “Provide safe and effective workplace environment
for employees”, Mitsui E&S Group has been working to focus on the prevention oflifestyle-related diseases and their aggravation based on the collaborative health promotion project with the health insurance society as a solid foundation for health management. In July 2019, we established the Health Management Declaration, and are actively
working on health management measures from a group management perspective as
well as making further efforts to promote the mental and physical health of employees.

24

Mitsui E&S Group INTEGRATED REPORT 2020

Labor and management co-sponsored softball tournaments, sports days, and family festivals, etc. are held at each
works with the aim of revitalizing the workplace and fostering friendships.

2019 Mitsui E&S Family Festival at
Chiba Works

2019 Mitsui E&S sports day at
Tamano Works

2019 Autumn Festival at Oita Works

Mitsui E&S Group INTEGRATED REPORT 202025

Human Assets

We also provide job-class- speciﬁc training programs, including one for mid-level

Basic policy
Mitsui E&S Holdings Co., Ltd., Mitsui E&S Shipbuilding Co., Ltd., Mitsui E&S Machinery Co., Ltd., Mitsui E&S Engineering Co.,
Ltd. and Mitsui E&S Business Service Co., Ltd. (hereinafter, the “Mitsui E&S Group”) aim to create a corporate culture that istruly free of discrimination, together with the affiliated companies, as a corporate entity that demonstrates social responsibility.
For this purpose, the Mitsui E&S Group positions the solution of human rights problems, including problems related to discriminated communities, gender discrimination and racial discrimination, as an important task, and strives to solve these problems
through daily business activities under the principle of respect for human rights.

employees and one for those in managerial positions. In addition, from the viewpoint of fostering global human resources, we offer English courses and training
programs related to cross-cultural communications and deploy young employees tooverseas business locations. From the perspective of preventing the spread of
COVID-19, we are moving some programs online.
1st young persons’ seminar● Training System
Job-class-speciﬁc training
programs

Organizational structure (organizations and systems for promoting training)
We have appointed the director in charge of the Human Resources & General Affairs Department of Mitsui E&S Holdings Co.,
Ltd. as the head of the Mitsui E&S Group Committee for Promoting Human Rights Awareness. Under the head of the commitdinate between group companies, we have also established the Mitsui E&S Group Meeting of People in Charge of Promoting

Mid-level
employees

Training for line manager candidates

Business skills training V

Management training

Business skills training IV

Job rotation system

Business skills training III

Global human resource
development

Global communication training

Human Rights Awareness as the advisory body.

Third year training

Young employees

Mitsui E&S Group

Introductory training for new employees

Mitsui E&S Group Human Rights Enlightenment Committee(Chairman: Director in charge of HD Human Resources & General Affairs Dept.)
Group-Wide Meeting of People in charge of Human Rights
Enlightenment Committee(Person in charge assigned from HD and Operating Company)

Business skills training II

FU training for new employees

English courses

tee, we have established the Committee for Promoting Human Rights Awareness in each Mitsui E&S Group company. To coor-

Managerial position
employees

Business skills training

Overseas deployment system

Business skills training I

Human Rights Secretariat(HD Human Resources & General
Affairs Dept.)

Initiatives for promoting work-life balance
Introduction of Telecommuting System

Mitsui E&S Shipbuilding
Human Rights Enlightenment
Committee

Mitsui E&S Machinery
Human Rights Enlightenment
Committee

Mitsui E&S Engineering
Human Rights Enlightenment
Committee

Mitsui E&S Business Service
Human Rights Enlightenment
Committee

In March 2018, we introduced a Telecommuting System in addition to the existing Flexible Working Hours System without coretime and hourly annual leave. In April 2019, the system was relaxed so that it could be used by any employee for working from
home, not just for those with childcare or nursing care needs. The system aims to maximize individual abilities through flexible

In corporate activities, each and every employee in the workplace is absolutely essential, and the work environment in whichand diverse work styles not restricted by working place or time.

human rights are respected not only creates purpose and job satisfaction, but also maximizes what employees can do, thereby

Implementation of “telecommuting promotion days” and development of measures to combat the spread of COVID-19

improving productivity. Based on this idea, the Group has established the Basic Policy for Enlightening People about Human Rights.

Following the relaxation of the telecommuting system, telecommuting days were promoted to employees of Mitsui E&S Hold-By carrying out various activities on human rights awareness at every level of the Company, including training on human rights for all
executives, we are striving to create an equal and non-discriminatory workplace environment that respects human rights.

ings and Mitsui E&S Business Service from July 22 to September 6, 2019. We were able to use this opportunity to identify thework-related and systemic issues in telecommuting, leading to the implementation of telecommuting as a measure to preventthe spread of COVID-19 at our headquarters.

opics
To increase employee motivation and strengthen engagement
The Mitsui E&S Group carried out motivation surveys for employees regarding the attractiveness of the Company, the workplace, thejob and treatment, etc., with the aim of visualizing the state of the organization and its employees, leading to action for reform (January
2019 survey for administrative and technical employees. 2,359 respondents with a 95% response rate). Based on these results, we areworking on various measures that lead to further motivate employees.
• Passing on of business strategies through dialogues and round-table discussions held by Mitsui E&S Holdings and operating company
presidents• Training for managers at the heart of improving motivation and strengthening engagement• Recommended activities for boosting motivation and improvement activities promoted by employees as a whole
As the Mitsui E&S Group continues to carry out and monitor motivation surveys, with human resources as the source of its competitiveness, we will work on various measures to enable employees to demonstrate their highly motivated strengths.

Initiatives for developing human resources
We have set “making them full- ﬂedged in ﬁve years” as the goal for training young employees. We provide them with grouptraining in their ﬁrst and third years at the company, training on basic skills for speciﬁc types of job, and other training programs.

26

Mitsui E&S Group INTEGRATED REPORT 2020

opics
Mitsui E&S Holdings and Mitsui E&S Machinery acquire “Platinum Kurumin” certification for the first time
Together with its operating companies Mitsui E&S Machinery and Mitsui E&S Shipbuilding, Mitsui E&S Holdings has developed and is
promoting a general employer action plan based on the Japanese government’s Act on Advancement of Measures to Support Raising
Next-Generation Children with the aim of “developing an employment environment to help employees balance work and family life” and“contributing to the community in supporting the development of the next generation.”
Under the Action Plan for FYE Mar. 2018 (‘17/4-‘18/3) to FYE Mar. 2019 (‘18/4- ‘19/3), Mitsui E&S Holdings, Mitsui E&S Machineryand Mitsui E&S Shipbuilding each obtained their second “Kurumin” certification. In addition, Mitsui E&S Holdings and Mitsui E&S Machinery met the requirements to acquire their first “Platinum Kurumin” certification, which is granted to companies that support the development of the next generation at an even higher level.
Mitsui E&S Group’s major initiatives under the Action Plan for FYE Mar. 2018 (‘17/4-‘18/3) to FYE Mar. 2019(‘18/4- ‘19/3)(1) Promote parental leave for employees who are pregnant or raising children and establish a system fortaking leave for childcare purposes(2) Introduce a telecommuting system as a way to implement work style reform, and promote the reductionof overtime work and taking of annual paid leave(3) Conduct internships and factory tours for students

Mitsui E&S Group INTEGRATED REPORT 202027

Social Contributions

Communication

Ministerial commendation with Tamano City for local revitalization support tax system(hometown tax for enterprises)

Together with customers

Founded in Tamano City, Okayama Prefecture in 1917, the Company, work-

our management policy that supports the company philosophy, we have set “Build further satisfaction for our customers” as

We work under our company philosophy of “To continue our role as a trusted company, and as a trusted member of society” In

Practical training on thelathe

ing together with Tamano City, has developed the Tamano Humanone of our most important objectives. In our speciﬁc standards of conduct for employees, we give top priority to “customer

Resource Regional Development Project centered on the establishment oforientation” and “Diligently attend to our customer needs for creating value-added products” and strive to develop and provide

a new industrial department at Tamano Shoko (Commercial and Industrial)differentiated products and services based on new ﬁndings from customers’ voices.

High School for the purpose of nurturing young people to support the
manufacturing industry. In addition to providing funds for the establishment

Together with shareholders and investorsof the school’s mechanical engineering department, which was established

We position IR activities as a part of the long-term business and ﬁnancial strategies of senior management. We disclose ourin April 2018, Mitsui E&S provided a total of ¥100 million in support forcorporate information in a fair and proactive manner in our effort to deepen shareholders’ and investors’ understanding of the

training facilities and sending technical instructors, etc. Tamano City andbusiness activities of Mitsui E&S Holdings and the Mitsui E&S Group.

the Company’s efforts in this project were highly praised with both recently

Information disclosure and IR activities

receiving the Ministerial Commendation for Local Revitalization Support

To build better relationships with shareholders and investors, we strive to ensure timely, appro-Tax System (hometown tax for enterprises) established by the Cabinet

priate information disclosure and have our senior management explain our business policies

Office. The school’s mechanical engineering department is attracting atten-

and speciﬁc visions in our IR activities, so as to ensure highly transparent management.

tion as the first department in Japan to use a mechanical engineering training facility in a company, with students coming to learn not only from

Newly built training lab at the
Mitsui E&S Tamano Works

Tamano City but also from nearby Okayama and Kurashiki cities.

Provision of IR information
We publish information about our company on our website in a timely, appropriate manner.
In addition to providing materials including those for results brieﬁng sessions and those on
midterm business plans, we also provide video and other content aimed at providing shareholders and other investors with greater insight into the Mitsui E&S Group. We will continue

Support for Fureai Concert

August 2, 2019 Aoi Trioconcert for persons withdisabilities(Tokyo Opera City)

The activities of the Fureai Trio commenced in 2003 with a desire to
expose children and people with disabilities, who have few opportunities

Together with business partners
As a manufacturing and engineering company, we aim to provide cost-competitive, high-quality products. In the procurement of

to be exposed to classical music, to live classical music and enrich theirmaterials and equipment for our products, we strive to ensure co-existence and co-prosperity with our business partners

lives spiritually. The three have been doing more since 2019 by holding

through fair trade with them, so as to fulﬁll our social responsibility.

the Fureai Concert. Since these activities began, the Mitsui E&S Group

Basic policy on the selection of business partners

has not only provided sponsorship but also helped in terms of volunteers
at the concert hall, etc.

IR information in Corporate website

striving to provide easy-to-understand information promptly.

May 15, 2019 Privet
Trio performs at Ageo
Elementary School in
Ageo, JapanWe established the Mitsui Administration Manual (MAM) in 1994. Concerning the selection of business partners by the procurement department, MAM stipulates that “As a basic principle, we shall select business partners in a fair and square mannerby providing all companies that desire to be our business partners with equal, fair opportunities for participation.” We engage inprocurement activities based on this principle.

Activities of the Mitsui Public Relations Committee

For fair and equitable dealings

We have co-sponsored a range of social contribution activities as a

We established the Rules and Ethics for Material Procurement in November 2002. It shows the ethics and behavior and activity

member company of the Mitsui Public Relations Committee, which con-standards for all staff engaged in procurement activities. On the basis of the utmost integrity, we strive to build equal and fairsists of 24 Mitsui Group companies. This committee carries out a variety ofrelationships of trust with business partners.

cultural and art activities aimed at “enriching society by cherishing people
and respecting diverse personal characteristics,” working in line with the

Together with local communities

characteristics of the Mitsui Group described as “Mitsui is People.”

We attach importance to communications with local communities. Employees in each of our business locations engage in

MITSUI Golden Glove Award
We grant this award to professional baseball players who have exhibited
outstanding ﬁelding performance throughout the season.

environmental and social contribution activities locally, aiming to create a sustainable society. Information about initiatives taken

The 48th MITSUI
Golden Glove Award
Prizewinning players

at each business location is provided in this report and on our website.

Ceremonial ship launching shown to the public at Tamano Shipyard(about ﬁve times a year)

Mitsui Golden Glove Baseball ClassThis is a baseball class specializing in ﬁelding, which is aimed at baseballcoaches for juniors. We invite ex-professional baseball players who won
the MITSUI Golden Glove Award to be instructors.
The MITSUI Golden Takumi Award
Founded in 2015 with the desire to support craftspeople carrying the
manufacturing of traditional Japanese crafts into the future28

Mitsui E&S Group INTEGRATED REPORT 2020

Instructors
Sadaharu Oh, Chairman of
the World Children’s BaseballFoundation (WCBF)

Featuring the spectacle of a huge ship launching into the sea, ceremonial ship launches at Tamano
Shipyard is received well by all those who observe it. Tamano City Tourist Association and otherparties organize a popular industrial tour around Tamano City, the highlight of which is the chance
to observe a ceremonial ship launch (which is held irregularly). Information about the observation of
ceremonial ship launches is posted to the offcial website of Tamano City as it becomes available.

Mitsui E&S Group INTEGRATED REPORT 202029

Company ProﬁleCompany Proﬁle (As of March 31, 2020)

Holdings

Shipbuilding

Business Service

MachineryEngineering

Offices and Works

Company Name

Mitsui E&S Holdings Co., Ltd. (Since April 1, 2018)

Head Office Location

6-4, Tsukiji 5-Chome, Chuo-ku, Tokyo 104-8439, JapanFounded in

November 14, 1917

Established inJuly 31, 1937

Capital¥44,385 million

Number of shares authorized to be issued

150,000,000 Shares

Number of outstanding shares

83,098,717 Shares Kansai Office Chubu Office Nagoya Office Kobe Office Tamano General Office Tamano Shipyard
 Tamano Machinery Factory Tamano Office Head Office/Makuhari Center Office Chiba Office Chiba General Office Chiba Shipyard
 Chiba Office Okayama Office

Number of shareholders

50,337

Employees

13,408 (Consolidated) 131 (MES Only) Kure Office Head Office Head Office/Tokyo Office Fukuoka Design Section, EPCS Business Section
 Oita General Office Oita Works Kyushu Office

Shareholding situation by each category of shareholders (As of March 31, 2020)

 Keihin Office

Oversea Network
 Hanoi Representative Office

0.6%

11.7%

Foreignnationals

31.2%

 Mitsuizosen Technoservice Hong Kong Ltd.

Stock companies

Corporations other thanﬁnancial institutions or
stock companies

The total numberof shareholders

50,337

Financial
institutions

31.5%

Individuals, etc.

25.0%

Financial institutions

 Jiangsu Yangzi-Mitsui Shipbuilding Co., Ltd.
 Mitsui E&S (China) Co., Ltd.
 MES Technoservice (Shanghai) Co., Ltd.
 MES Ferrotec China Co., Ltd.
 CSSC-MES Diesel Co., Ltd.

 Burmeister & Wain
Scandinavian Contractor A/S

65

26,141,141

31.5%

Individuals, etc.

49,602

20,783,437

25.0%

Foreign nationals

252

25,952,747

31.2%

 TGE Marine Gas Engineering
GmbH

Corporations other than ﬁnancial
institutions or stock companies

372

9,741,202

11.7%

 Mitsui E&S Machinery Europe
Limited.

Stock companies

46

480,1900.6%

 Mitsuizosen Technoservice Taiwan Co., Ltd.
 PACECO Corp.
 MODEC International, Inc.

 MES Technoservice Machinery
Construction Logistics Industry
and Trade Corporation

 DASH Engineering Philippines, Inc.
 Mitsui Thang Long
Steel Construction Co., Ltd.

 MES Technoservice Middle East W.L.L.
 MES Yangon Office

Major 10 shareholders (As of March 31, 2020)
Name MES Technoservice Malaysia Sdn Bhd

 Jakarta Representative Oﬃce

Number of Shares’ Held Shareholding Ratio(Thousand Shares)(%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

4,694

5.80

PICTET AND CIE (EUROPE) S.A.

3,861

4.77

Imabari Shipbuilding Co., Ltd.

2,900

3.58

Japan Trustee Services Bank, Ltd. (Trust Account)

2,754

3.40

Mitsui & Co., Ltd.

2,550

3.15

The 114th Bank

2,546

3.14

Japan Trustee Services Bank, Ltd. (Trust Account for the retirement allowance for Sumitomo
Mitsui Trust Bank, Limited)

2,331

2.88

STATE STREET BANK AND TRUST COMPANY 505001

2,219

2.74

GOLDMAN SACHS INTERNATIONAL

1,744

2.15

TAIJU LIFE INSURANCE COMPANY LIMITED

1,600

1.97

Mitsui E&S Group INTEGRATED REPORT 2020

 MITSUI E&S ASIA PTE. LTD.
 AZUMA Engineering (S) Pte. Ltd.
 PT. MES Machinery Indonesia

Notes: 1. T he Company owns 2,259,772 shares of treasury stock which is excluded from the major shareholders listed above. The treasury stock includes 400 sharesthat are not actually owned by the Company, although they are in the name of the Company on the shareholder registry.
2. T he shareholding ratio is calculated excluding treasury stock.
3. C ompany shares held by Japan Trustee Services Bank, Ltd. (Sumitomo Mitsui Trust Bank, Ltd. Retirement Benefit Trust Account) are the retirement benefit
trust assets entrusted by Sumitomo Mitsui Trust Bank, Limited.

30

 MES (Thailand) Ltd.

Main group companies (As of June 30, 2020)•Mitsui E&S Shipbuilding Co., Ltd.

•Mitsui E&S Machinery Co., Ltd.

MES-KHI Yura Dock Co., Ltd.
Akishima Laboratories (Mitsui Zosen) Inc.
MES Tokki & Engineering Co., Ltd.
MES Shipping Co., Ltd.
Shikoku Dockyard Co., Ltd.
Niigata Shipbuilding & Repair, Inc.
TGE Marine Gas Engineering GmbH
Jiangsu Yangzi-Mitsui Shipbuilding Co., Ltd.

Mitsui E&S Power Systems Inc.
Mitsui Meehanite Metal Co., Ltd.
Sanzo Manufacturing & Construction Co., Ltd.
Mitsui E&S Technical Research Co., Ltd.
Azuma Machinery Co., Ltd.
Paceco Corp.

•Mitsui E&S Engineering Co., Ltd.
PT. MES Machinery Indonesia
CSSC-MES Diesel Co., Ltd.
MES Ferrotec China Co., Ltd.
Mitsuizosen Technoservice Hongkong Ltd.
Mitsuizosen Technoservice Taiwan Co., Ltd.
MES Technoservice Middle East W.L.L.
MES Technoservice Machinery Construction
Logistics
Industry and Trade Corporation

Mitsui E&S Environment Engineering
Corporation
DASH Engineering Philippines, Inc.

•Mitsui E&S Business Service Co., Ltd.

•MODEC, Inc.

•Kaji Technology Corporation•Mitsui E&S Systems Research Inc.

•Burmeister & Wain Scandinavian Contractor A/S•Mitsui E&S Asia Pte. Ltd.

•MES Facilities Co., Ltd.

•Mitsui E&S Steel Structures Engineering Co., Ltd.

•Mitsui E&S (China) Co., Ltd.

•DPS Bridge Works Co., Ltd.

	
Please visit our website for IR information and sustainability initiatives.
Our website		Website is accessible from your smartphone.
https://www.mes.co.jp/english/

Mitsui E&S Group INTEGRATED REPORT 202031

6-4, Tsukiji 5-chome, Chuo-ku, Tokyo 104-8439, Japan

www.mes.co.jp/english/