Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

February 13, 2023

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2022
(Under Japanese GAAP)
Company name:
Mitsui E&S Holdings Co., Ltd.
Listing:
Tokyo Stock Exchange
7003
Securities code:
URL:
https://www.mes.co.jp/
Representative:
Takeyuki Takahashi, President, Representative Director, and CEO
Koichi Watanabe, General Manager of Finance & Accounting Dept.
Inquiries:
Telephone:+81-3-3544-3121
February 14, 2023
Scheduled date to file quarterly securities report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(Percentages indicate year-on-year changes.)(1) Consolidated Operating Results (cumulative)
Net sales
Nine months ended
December 31, 2022
December 31, 2021

Operating loss

Millions of yen

Note: Comprehensive income%Millions of yen%

Millions of yen%

Millions of yen%

173,194 (65.9)
508,538
4.9(2,542)(9,418)-(447)(8,629)-2,215(1,933)-For the nine months ended December 31, 2022:¥ 27,044 million [ 741.7% ]For the nine months ended December 31, 2021:¥ 3,213 million[-%]

Earnings per share(diluted)

Earnings per share
Nine months ended
December 31, 2022
December 31, 2021

Profit (loss) attributableto owners of parent

Ordinary loss

YenYen22.14(23.92)

21.82-(2) Consolidated Financial Position
Total assets
As ofDecember 31, 2022
March 31, 2022
Reference: Equity

Shareholders' equity tototal assets ratio

Net assets

Millions of yen

Millions of yen%

426,513409,150

99,67062,94922.4
14.0

As of December 31, 2022:¥ 95,501 million

As of March 31, 2022:¥ 57,091 million

2. Dividends
Common stock
Fiscal year ended/ending
March 31, 2022
March 31, 2023
March 31, 2023 (Forecast)

Annual dividend per shareFirst quarter-end Second quarter-end Third quarter-end

Fiscal year-end

Total

Yen

YenYenYen

Yen-0.00
0.00

-0.00

0.00

0.00

0.00

Note 1: Revisions to the most recently announced dividends forecast: None
Note 2: The above "2. Dividends" shows dividends for Common stock. For details of dividends for Preferred stock (unlisted), the rights of which
are different from those of Common stock issued by the Company, please refer to "Reference: Dividends for Preferred Stock" below.

-1-3. Forecast of Financial Results (from April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ending
March 31, 2023

Millions of yen% Millions of yen

240,000 (58.6)

Profit attributable toowners of parent

Ordinary income

Operating income

Earnings pershare% Millions of yen% Millions of yen%Yen---

41.33

1,000

3,000

Note: Revisions to the most recently announced forecast of financial results:

4,000

Yes

Reference: Estimate is based on exchange rate of USD1.00 = JPY130.0* Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in the change in scope of consolidation):
Yes
Newly included:
Excluded:
1 company (Mitsui E&S Shipbuilding Co., Ltd.)(2) Application of specific accounting treatment for preparing the quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatementi ) Changes in accounting policies due to revisions of accounting standards: Noneii ) Changes in accounting policies due to other reasons:
Yesiii ) Changes in accounting estimates:
Noneiv ) Restatement:None(4) Number of issued shares (common stock)i ) Number of issued shares at the end of the period (including treasury stock)shares
As of88,169,217
December 31, 2022
83,098,717
March 31, 2022ii ) Number of treasury stock at the end of the period
shares
As of2,235,302
December 31, 2022
2,238,851
March 31, 2022
iii ) Average number of shares outstanding during the period (cumulative quarterly consolidated period)
sharesNine months ended
83,990,592
December 31, 2022
80,851,556
December 31, 2021
* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Notice regarding forward-looking statements)
The forecasts for financial results are based on information available at the time this report was released. These forecasts and other forward-looking
statements are not guarantees of future performance. Actual operating results may differ from the above forecasts due to known and unknown risks,
uncertainties, and other factors.
(Where to get the supplementary explanatory materials)
Supplementary material is planned to be posted on our web site.

Reference: Dividends for Preferred Stock
Dividend per share for Class-A Preferred stock is as follows:

Class-A Preferred stock
Fiscal year ended/ending
March 31, 2022
March 31, 2023
March 31, 2023 (Forecast)

Annual dividend per shareFirst quarter-end Second quarter-end Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen-----

29.38

29.38

Note: Each dividend per share is rounded to the nearest thousandths place, and then converted to units of yen which are rounded to the nearest
hundredth place.

-2-Application of International Financial Reporting Standards to the Affiliate using Equity Method
MODEC, Inc., the affiliate accounted for using equity method, used to apply Generally Accepted Accounting Principles in Japan and now has adopted
International Financial Reporting Standards (IFRS) from FY2021. This adoption was made for the purposes of 1) better comparability of financial
information and 2) strengthening management control by unifying the accounting standards across MODEC group, as MODEC group operates businessglobally. This change of accounting policy is applied retrospectively, and quarterly consolidated financial results for the prior period has been restated.
Because of the partial sale of MODEC shares, they were excluded from the scope of consolidation and became affiliates accounted for using equity
method on the end of 3rd quarter of FY2021.
This change has no effect on Quarterly Consolidated Statements of Operations, but reflecting the cumulative effects to the beginning balance of net
assets as of April 1, 2021, beginning balances for the previous fiscal year of Retained earnings, Unrealized gains (losses) on hedging derivatives andNon-controlling interests have decreased by 2,861 million yen, 591 million yen and 4,069 million yen, respectively, and beginning balance for theprevious fiscal year of Foreign currency translation adjustments has increased by 101 million yen, comparing before and after retrospective restatement.

Overview of Reportable Segment
Reportable Segment is classified into 4 segments: Ship, Ocean Development, Machinery and Engineering. Main products and services of each Reportable
Segment are as follows.

Reportable Segment

Main Products and Services

Ship

Commercial ships, high speed passenger/vehicle ferries, offshore structures, underwater TV vehicles, design
engineering services, ship related equipments, steel structures

Ocean Development

FPSOs (floating production storage offloading vessels)

Machinery

Marine and stationary diesel engines, marine equipments, gas engines, steam turbines, blowers, processcompressors, gas turbines, cogeneration system, process equipment, container cranes, industrial cranes,
container terminal management systems, HWM manipulators, equipment of radar sensing for undergroundand construction, induction heaters, wave generators

Engineering

Power generation business, overseas civil/architectural works

Note: "Ocean Development" consists of affiliates accounted for using equity method.

-3-

Information about Sales, Segment Income and Loss and Other Items for each Reportable Segment
Reportable Segment information for the nine months ended December 31, 2021 and 2022 were as follows:from April 1, 2021 to December 31, 2021

(Millions of yen)
Ship

OceanDevelopment

Machinery Engineering Sub total

Others

Total

Adjustments Consolidated

24,086323,321

107,551

6,931

461,890

46,647

508,538-

508,538

843

-843

40

1,726

9,366

11,093(11,093)-

24,929323,321

108,395

6,971

463,61756,014519,632(11,093) 508,538(216)(8,086)

3,623(5,429) (10,109)

690(9,418)-(9,418)12,787

270,697

110,476

1,533

395,493

37,419432,913-432,913

43-

-

044-

44044

Net Sales:
Outside customers
Inter segment
TotalSegment income (loss)
Other Items:
New orders
Loss on impairment of noncurrent assets

Note 1: “Others” is the segment which is not included in Reportable Segment and includes Stationary diesel power generation plants,
Telecommunications equipment related business, Systems development, Gas carriers engineering, Special facilities for naval ships and aircraft
related business and others.
Note 2: Adjustments of 0 million yen recorded for loss on impairment of non-current assets are the impairment loss for Corporate.
Note 3: Segment income (loss) is adjusted with operating loss in Quarterly Consolidated Statements of Operations.
from April 1, 2022 to December 31, 2022

(Millions of yen)
Ship

Ocean
Development

Machinery Engineering Sub total

Others

Total

Adjustments Consolidated

Net Sales:
Outside customers
Inter segment
TotalSegment income (loss)

6,598-120,688

6,650

133,937

39,256173,194-

173,194

32-

313-

346

7,945

8,291

(8,291)

-

6,631

-

121,001

6,650

134,283

47,201

181,485

83

762

2,791

(5,027)(1,390)(389)(1,780)(762)(2,542)

8,439-

161,934

1,904

172,277

41,742

214,019-

214,019(8,291) 173,194

Other Items:
New orders

Note 1: Segment income (loss) in "Ship," "Machinery," "Engineering" and "Others" represents "Operating income (loss)," and in "Ocean
Development" represents "Share of profit (loss) of entities accounted for using equity method."
Note 2: Mitsui E&S Shipbuilding Co., Ltd. and its two subsidiaries, which compose "Ship," were excluded from the scope of consolidation since
this 3rd quarter of FY2022. Due to this deconsolidation, the above "Ship" figures are presented through the 2nd quarter of FY2022.
Note 3: “Others” is the segment which is not included in Reportable Segment and includes Stationary diesel power generation plants,
Telecommunication equipment related business, Systems development, Gas carriers engineering, Special facilities for naval ships and aircraft
related business and others.
Note 4: Segment income (loss) is adjusted with operating loss in Quarterly Consolidated Statements of Operations.

Change in Calculation Method used for Segment Income and Loss for Reportable Segment
Segment income (loss) used to represent "Operating income (loss)" in Consolidated Statements of Operations. Regarding "Ocean Development," however,segment income (loss) has changed to represent "Share of profit (loss) of entities accounted for using equity method" since 1st quarter of FY2022, insteadof "Operating income (loss)." This is because the management indicator has been changed after MODEC, Inc., which consists of "Ocean Development,"
had been excluded from the scope of consolidation and become affiliates accounted for using equity method since the end of 3rd quarter of FY2021.
Taking the said change into account, segment loss for "Ocean Development" for the prior period would become 1,498 million yen.
* Figures in parentheses represent negative.

-4-

Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022 As of December 31, 2022
AssetsCurrent assets
Cash and time deposits
Notes and accounts receivables - trade,and contract assets
Merchandise and finished goods
Work in progress
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
LandOthers, net
Total property, plant and equipment
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Investment securities
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

51,76240,14378,563

71,778

5,762
36,561
4,182
25,202(213)
201,822

6,050
47,281
6,613
27,730(172)
199,424

70,07748,261
118,338

68,55546,785
115,341

7,995
8,046
16,042

7,623
7,704
15,32843,28029,965(299)
72,946207,327
409,150

69,473
27,230(284)
96,419227,088426,513(Millions of yen)
As of March 31, 2022 As of December 31, 2022
Liabilities
Current liabilities
Trade payables
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds
Accrued income taxes
Contract liabilities
Provision for losses on construction contracts
Provision for bonuses
Other provisions
OthersTotal current liabilities
Long-term liabilities
Bonds
Long-term borrowings
Provision for business restructuring
Other provisions
Net defined benefit liabilities
Asset retirement obligations
OthersTotal long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Net unrealized holding gains on securities
Unrealized gains (losses) on hedging derivatives
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

48,705
94,615
8,101
15,0001,381
30,901
59,607
4,478
4,614
21,105288,51052,549108,133
7,355
5,000
574
36,66948,298
1,942
3,542
18,553
282,619

5,000
19,657
1,357
837
5,865
2,218
22,752
57,690346,200

14,446
960
755
5,547
1,722
20,791
44,223326,842

44,384
18,132(33,278)(4,663)
24,575

3,356
10,43828,954(4,652)
38,096614(5,959)27,6032,120
8,137
32,516
123
5,733
62,949409,15061
7,508
27,601
15,614
6,618
57,404153
4,016
99,670426,513

Consolidated Statements of Operations(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign currency exchange gains
Gain on valuation of derivatives
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Commission expenses
Foreign currency exchange losses
OthersTotal non-operating expenses
Ordinary loss
Extraordinary income
Gain on disposal of non-current assets
Gain on sale of investment securities
Gain on sale of subsidiaries and affiliates' stocks
Recovery of extraordinary repair expenses
Gain on return of assets from retirement benefit trust
Insurance income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on impairment of non-current assets
Loss on sale of investment securities
Loss on sale of subsidiaries and affiliates' stocks
Provision for losses on sales of subsidiaries and affiliates'
stocksLoss due to transportation accidents
Loss on liquidation of businessTotal extraordinary losses
Profit before income taxes
Income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent-7-

April 1, 2021 to
December 31, 2021

April 1, 2022 to
December 31, 2022

508,538
486,882
21,65531,074(9,418)173,194
154,730
18,46321,005(2,542)

3,809
104

97
213

2,228

1,669

19
1,582
7,745

4,659
901
7,540

2,165
3,543
2769696,955(8,629)

2,094
2,107
1,244
5,446(447)

2,356
17
6,325
1,316
1,224
11,239

644
2,798
1,336
4,780

205
44136
225

274

1,736

-

2,350
260
5,306
(5,046)(3,112)(1,933)

1,026
107
1,408
2,923
809
2,113(101)2,215Consolidated Statements of Comprehensive Income(Millions of yen)

Profit (loss)
Other comprehensive income
Net unrealized holding gains (losses) on securities
Unrealized losses on hedging derivatives
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates
accounted for using equity method
Total
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests-8-

April 1, 2021 to
December 31, 2021

April 1, 2022 to
December 31, 2022

(5,046)2,113

306(1,985)1,451
141(556)(2,080)3,158(1,760)8,344

26,169

8,259
3,213

24,93027,044

6,583(3,370)27,104(60)