Note: This document has been translated from 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 14, 2024

Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Under Japanese GAAP)
Company name:
MITSUI E&S Co., Ltd.
Listing:
Tokyo Stock Exchange
7003
Securities code:
URL:
https://www.mes.co.jp/
Representative:
Takeyuki Takahashi, President, Representative Director, and CEO
Inquiries:
Kazuo Hayashi, General Manager of Accounting Dept.
Telephone:+81-3-3544-3210
February 14, 2024
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, 2023 (from April 1, 2023 to December 31, 2023)(Percentages indicate year-on-year changes.)(1) Consolidated Operating Results (cumulative)
Profit attributable to
Net sales
Operating income (loss) Ordinary income (loss)
owners of parent
Nine months ended
December 31, 2023
December 31, 2022

Millions of yen

Note: Comprehensive income%

Millions of yen%

Millions of yen%

215,361 24.3
173,194 (65.9)

13,481(2,542)-

11,690(447)-%

11,665 426.5
2,215-

For the nine months ended December 31, 2023:¥ 22,077 million [ (18.4%)]

For the nine months ended December 31, 2022:¥ 27,044 million [ 741.7% ]Earnings per share(diluted)

Earnings per share
Nine months ended
December 31, 2023
December 31, 2022

Millions of yen

Yen

Yen

119.3022.14

118.4921.82(2) Consolidated Financial Position
Total assets
As ofDecember 31, 2023
March 31, 2023
Reference: Equity

Net assets

Shareholders' equity tototal assets ratio

Millions of yen

Millions of yen%

467,035
439,959

138,165
110,686

28.6
24.2

As of December 31, 2023: ¥ 133,778 million
As of March 31, 2023: ¥ 106,404 million

2. Dividends
Common stock
Fiscal year ended/ending
March 31, 2023
March 31, 2024
March 31, 2024 (Forecast)

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

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

-

0.00
0.00

-

3.00

3.00

3.00

3.00

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

3. Forecasts for Financial Results (from April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ending
March 31, 2024

Millions of yen

300,000

Operating income% Millions of yen

14.4

17,000

Profit attributable toowners of parent

Ordinary income% Millions of yen

81.3

16,000% Millions of yen

27.7

17,000Earnings per
share

%

Yen

9.3

174.60Note: Revisions to the most recently announced forecasts for financial results: Yes
Reference: Estimate is based on exchange rate of USD1.00 = JPY140.0* 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:
2 companies (Mitsui E&S Machinery Co., Ltd. and Mitsui E&S Business Service 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:Noneiii ) 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)sharesAs of103,098,717
December 31, 2023
89,737,117
March 31, 2023
ii ) Number of treasury stock at the end of the period
sharesAs of2,224,745
December 31, 2023
2,226,686
March 31, 2023
iii ) Average number of shares outstanding during the period (cumulative quarterly consolidated period)
sharesNine months ended
93,342,634
December 31, 2023
83,990,592
December 31, 2022
* 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 forwardlooking statements are not guarantees of future performance. Actual operating results may differ from the above forecasts due to known andunknown risks, uncertainties, and other factors. Please refer to "1. Qualitative Information on Financial Results for the Nine Months Ended
December 31, 2023, (3) Explanation of Forecasts for Consolidated Financial Results and Other Forward-Looking Statements" on page 4 (attachedmaterials) for the assumptions used in forecasting business results and precautions regarding the use of business results forecasts, etc.
(Where to get the supplementary explanatory materials)
Supplementary material is planned to be posted on our web site.

Reference: Dividends for Preferred Shares
Dividend per share for Class-A Preferred shares are as follows:

Class-A Preferred SharesFiscal year ended/ending
March 31, 2023
March 31, 2024
March 31, 2024 (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

39.00

39.00

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.

Table of Contents of Appendix
1.

2.

Qualitative Information on Financial Results for the Nine Months Ended December 31, 2023 ……………….

2(1)

Explanation of Operating Results ……………………………………………………………………......

2(2)

Explanation of Financial Position …………………………………………………………………….…

3(3)

Explanation of Forecasts for Consolidated Financial Results and Other Forward-Looking Statements ..

4

Quarterly Consolidated Financial Statements and Major Notes ………………………………………………

6(1)

Quarterly Consolidated Balance Sheets …………………………………………………………………

6(2)

Quarterly Consolidated Statements of Operations and Comprehensive Income ………………………..

8

Quarterly Consolidated Statements of Operations ………………………………………………………

8

Quarterly Consolidated Statements of Comprehensive Income …………………………………………

9

Notes to Quarterly Consolidated Financial Statements ………………………………………………….

10(Notes on Going Concern Assumption) ………………………………………………………………….

10(Notes in the Event of Significant Changes in Shareholders' Equity) ……………………………………

10(Application of Specific Accounting Treatment for Preparing Quarterly Consolidated Financial
Statements) ………………………………………………………………………………………………

10(Segment Information) …………………………………………………………………………………...

10(Significant Subsequent Events) …………………………………………………………………………

11

Supplementary Information …………………………………………………………………………………...

12

(3)

3.

-1-

1.
(1)

Qualitative Information on Financial Results for the Nine Months Ended December 31, 2023
Explanation of Operating Results
The global economy during the nine months ended December 31, 2023 slowed down due to such factors as weak
consumption caused by persistently high prices and increases in long-term interest rates, slowdown in demand growth forservices, and the deceleration of the Chinese economy. The outlook is uncertain as a result of concerns about reigniting inflation,
geopolitical risks, the slowdown of the Chinese economy, and other matters. On the other hand, the domestic economy isgradually recovering due to various factors such as solid consumer spending and increases in corporate performance and capital
expenditures.
In the shipbuilding industry, which is closely related to the Company, building berths are nearly fully booked in the nearterm, and some shipyards are finalizing contracts for some projects with delivery to be scheduled in the beginning of 2028,
showing that shipyards in Japan have secured sufficient volumes of work on hand. In addition, for the port logistics industry,
demands of port crane are strong in Southeast Asia and others regions overseas, and demands also continue to be strong in Japan
mainly due to new construction and expansion of existing facilities as well as renewal of existing facilities due to aging. The
Company recognizes that the environment for orders is steadily recovering, despite the risks from the ongoing fluctuations in theforeign exchange and financial markets and price fluctuations in materials procurement.
Under such circumstances, the Company transitioned to an operating holding company with an Audit Committee on April 1,
2023, and was reborn with the new corporate name of "MITSUI E&S Co., Ltd." Due to the completion of the "Mitsui E&S
Group Business Revival Plan," which established various measures such as the restructuring and withdrawing of unprofitablebusinesses and strengthening of the financial structure, any events or conditions that may cast significant doubts regarding thepremise of going concern have been dissolved. As we have assessed that we are well-positioned to achieve stable earnedsurplus, we resumed dividends for the first time in six fiscal years. In addition, to mark the start as a new company, theCompany renewed the personnel system in order to enhance its organizational culture that promote the personnel resources withability to create new value. In this context, the Company also did improve employee's wages in the spring wage discussions,
expecting to raise the motivation to realize growth strategies.
In addition, the "1st series of share acquisition rights with an exercise price amendment clause" had been fully exercised asof November 29, 2023, significantly ahead of the original schedule, leading to approximately 8.5 billion yen in funding andimprovements in the financial soundness of the Company.
Meanwhile, in light of the significant changes in the business environment surrounding us, we have already started the "MidTerm Business Plan 2023," one year ahead of schedule. The expansion of the core businesses of marine propulsion and port
logistics through "green" and "digital" strategies has been set as the pillar of the strategy of the Mid-Term Business Plan 2023.
In the marine propulsion business, we acquired IHI Power Systems Co., Ltd.’s businesses related to marine large bore
engines and its associated products, which commenced sales as “Mitsui E&S DU Co., Ltd.” on April 1, 2023, with its strength indual-fuel engines and digital remote maintenance systems. In July 2023, we formulated a business infrastructure strengthening
plan with Mitsui E&S DU Co., Ltd. to improve the productivity of marine two-stroke engines through the business infrastructure
strengthening plan certification system under the Act on Strengthening Maritime Industries, and received certification from the
Minister of Land, Infrastructure, Transport and Tourism. Based on this plan, we are developing and expanding an eco-friendly
engine-lineup with the enhancement of its production, which will lead to one of our main new green products.
The Group will expand its product lineup by establishing a double license system of MAN-Energy Solutions and Winterthur
Gas & Diesel, and improve competitiveness by efficiently using group resources, improving productivity, and enhancing aftersales service.
In the port logistics business, we developed the first Rubber Tired Gantry crane (RTG) that uses fuel cells (FCs) as a powersource in the world through collaboration with New Energy and Industrial Technology Development Organization (NEDO).
Furthermore, we proceeded with the decarbonization of products, such as by mounting FCs in RTG and concluding anagreement with Bureau of Port and Harbor Tokyo and three other companies to carry out cargo handling operations usinghydrogen as fuel. In addition, we will work to resolve issues of a society with a shrinking population by utilizing digitaltechnologies including the automation of port cranes, remote maintenance through drones, and enhancement of operational
efficiency of port terminals.
Moreover, we have positioned some specific businesses that promote new products and services in peripheral areas of corebusinesses as growth businesses. For example, we got an order for compressors for Japan's first large-scale production
demonstration plant for domestically produced Sustainable Aviation Fuel (SAF), which is made from waste cooking oil.
Including the said work, we will work to further enhance corporate value by focusing on development of new products andservices that takes decarbonization into consideration.
Orders received during the nine months ended December 31, 2023 increased by 13,882 million yen (up 6.5%) year on year
to 227,902 million yen. Net sales were 215,361 million yen, an increase of 42,167 million yen (up 24.3%) year on year due tofavorable deliveries of marine engines in Marine Propulsion Systems and the inclusion of Mitsui E&S DU Co., Ltd. in the scopeof consolidation. Operating income was 13,481 million yen (same period of the previous fiscal year was operating loss of 2,542-2-

million yen) mainly due to improved profitability in Marine Propulsion Systems. Ordinary income was 11,690 million yen(same period of the previous fiscal year was ordinary loss of 447 million yen) mainly due to the recording of share of profit ofentities accounted for using equity method, interest expenses, and commission expenses. Profit attributable to owners of parent
was 11,665 million yen, an increase of 9,449 million yen (up 426.5%) year on year mainly due to the recording of gain on
bargain purchase and gain on sales of subsidiaries and affiliates' stocks.
The overview by reportable segment is as follows. From the 1st quarter of FY2023, the Company changed the reportablesegment classifications, and the year-on-year comparison shown is based on the reportable segment classifications after thechange. For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to Quarterly
Consolidated Financial Statements (Segment Information)."(New Business Development)
Compared with the same period of the previous fiscal year, orders received increased by 5,742 million yen (up 18.2%) to
37,234 million yen. This is mainly due to increasing decarbonization demands as well as steady demands for blast furnace
blowers, construction equipment engines and industrial machineries associated with the renewal of facilities such as chemicalplants. Net sales totaled 29,152 million yen, increased by 6,839 million yen (up 30.7%) year on year, mainly due to an increasein orders for construction equipment engines. Operating income increased by 1,721 million yen (up 97.2%) year on year to
3,491 million yen due to the increased net sales.
(Marine Propulsion Systems)
Customer inquiries remain high, though orders received decreased by 5,324 million yen (down 5.9%) to 85,653 million yen
from the same period of the previous fiscal year. Net sales totaled 99,749 million yen, increased by 29,603 million yen (up42.2%) year on year. This is mainly due to favorable deliveries of marine engines, good performance in after-sales service, andthe inclusion of Mitsui E&S DU Co., Ltd. in the scope of consolidation. Operating income was 4,993 million yen, an increase of
3,599 million yen (up 258.1%) due to the increased net sales.
(Logistics Systems)
Orders received was 58,729 million yen, increased by 19,264 million yen (up 48.8%) compared with the same period of theprevious fiscal year, mainly due to a series of large orders in Southeast Asia. Mainly due to the steady deliveries of cranes, net
sales increased by 1,933 million yen (up 6.8%) year on year to 30,163 million yen. Operating income improved from a loss of
456 million yen to a profit of 1,034 million yen, mainly due to higher net sales and smaller impacts of provision for losses on
construction contracts.
(Peripheral Businesses)
Orders received increased by 5,677 million yen (up 14.0%) to 46,154 million yen from the same period of the previous fiscal
year, mainly due to large orders for Fuel Gas Supply systems (FGS) for East Asia. Net sales totaled 52,569 million yen,increased by 14,523 million yen (up 38.2%) year on year. This is mainly due to strong sales both in Japanese and foreignsubsidiaries. Thanks to the favorable net sales, operating income improved from a loss of 206 million yen to a profit of 2,024
million yen.
(Ocean Development)
MODEC, Inc. and its related companies, which are affiliates accounted for using equity method of the Company, recorded
the improvement costs of asset integrity incurred for the FPSOs and FSO operating in Brazil. Despite these costs, share of profit
of entities accounted for using equity method totaled 2,760 million yen, increased by 1,998 million yen (up 262.2%) comparedwith the same period of the previous fiscal year, mainly due to the revenue recognized from the progress of construction
projects.

(2)

Explanation of Financial Position
Total assets at the end of the 3rd quarter of the current fiscal year were 467,035 million yen, increased by 27,075 million yen
from the end of the previous fiscal year. This was mainly due to increases of 8,587 million yen in notes and accounts
receivables-trade, and contract assets, 10,100 million yen in work in progress, 5,273 million yen in raw materials and supplies,
and 9,112 million yen in investment securities, while cash and time deposits decreased by 7,457 million yen.
Total liabilities were 328,869 million yen, decreased by 404 million yen from the end of the previous fiscal year. This was
mainly due to decreases in current portion of long-term borrowings by 5,964 million yen, current portion of bonds by 5,000
million yen, provision for losses on construction contracts by 8,332 million yen, and others in current liabilities by 33,022
million yen despite increases of 11,416 million yen in trade payables, 36,933 million yen in short-term borrowings, and 3,081
million yen in contract liabilities.
Total net assets were 138,165 million yen, increased by 27,479 million yen from the end of the previous fiscal year. Thiswas mainly due to the exercise of the 1st series of share acquisition rights with an exercise price amendment clause, therecording of profit attributable to owners of parent, and an increase in foreign currency translation adjustments.

-3-

(3)

Explanation of Forecasts for Consolidated Financial Results and Other Forward-Looking Statements
The Company revised the forecasts for consolidated financial results for the current fiscal year as stated in "NoticeConcerning Revisions to Full-Year Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2024" which
was announced on February 14, 2024.

i) Reasons for revisions
The Company expects higher net sales than previously expected in New Business Development, where a subsidiary ismarking good performance in the area of construction equipment engines, and in Peripheral Businesses, where large works show
favorable progresses.
The actual results for the current year-to-date period show steady progress, including the reversal of provision for losses onoverseas civil engineering construction projects which are being completed. Besides, favorable variances are forecasted fromprior service costs accompanying the extension of retirement age. Mainly in light of the said factors, operating income wasrevised upward.
In addition, the Company forecasts better profit attributable to owners of parent, reflecting the higher other operating income
and extraordinary income mainly due to the increase in share of profit of entities accounted for using equity method and gain on
sales of subsidiaries and affiliates' stocks.

ii) Forecasts for consolidated financial results for FY2023 (From April 1, 2023 to March 31, 2024)
Net sales

OperatingincomeOrdinary
incomeMillions of yen

Millions of yen

Millions of yen

Profit attributableto owners ofparentMillions of yen

Previous forecasts (A)280,000

12,000

9,000

8,000

80.56

Revised forecasts (B)300,000

17,00016,00017,000174.60Change (B-A)

20,000

5,000

7,000

9,000

-

Change ratio

7.1

41.7

77.8

112.5

-

262,301

9,376

12,532

15,554177.47[For reference]
Results for FY2022-4-

Earnings per
share
Yen

iii) Forecasts for consolidated financial results by segment for FY2023 (From April 1, 2023 to March 31, 2024)(Millions of yen)Previous forecasts

Revised forecasts

ChangeNet sales

OperatingincomeNet sales

OperatingincomeNet sales

OperatingincomeNew Business
Development

30,0003,000

40,0004,000

10,0001,000

Marine Propulsion
Systems

130,000

5,000

130,000

6,000

-

1,000

Logistics Systems

50,0002,000

50,000

3,000

-

1,000

Peripheral Businesses

60,0002,000

70,0002,000

10,000-Ocean Development

-

-

-

-

-

-

Others

10,0000

10,000

2,000

-

2,000

Total

280,000

12,000300,000

17,00020,0005,000

Notes 1: Ocean Development consists of affiliates accounted for using equity method, and it does not affect net sales and operating
income.
2: Shares of profit of entities accounted for using equity method for FY2023 is expected to be approximately 6.0 billion yen in
Ocean Development.
3: Above forecasts are based on information currently available to the Company and certain assumptions that the Company
considers reasonable. Actual results may differ from the above figures due to various factors in the future.

-5-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023 As of December 31, 2023
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
Land
Others, 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-6-45,80338,34681,85090,438

6,095
46,7996,136
26,295(353)
212,628

6,827
56,89911,41025,471(442)
228,951

68,54447,223
115,767

68,47549,245
117,720

7,626
7,876
15,502

7,493
7,797
15,29068,802
27,544(285)
96,061
227,330
439,959

77,91527,284(126)
105,073
238,084
467,035

(Millions of yen)
As of March 31, 2023 As of December 31, 2023
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
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
Share capital
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Net unrealized holding gains on securities
Unrealized gains 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-7-

54,939115,245
9,375
5,000
796
25,30014,025
4,059
3,726
54,511
286,980

66,355
152,178
3,410
3,522
28,381
5,693
2,160
4,743
21,488287,935

11,927
853
747
5,048
1,728
21,98642,293329,273

11,335
853
683
5,408
1,733
20,92040,934
328,869

3,829
10,55242,292(4,632)
52,042

8,846
11,80453,150(4,623)
69,17848
8,309
27,601
10,691
7,710
54,362
132
4,148
110,686
439,959741
10,677
27,61818,0887,474
64,59989
4,298
138,165
467,035

(2) Quarterly Consolidated Statements of Operations and Comprehensive Income
Quarterly Consolidated Statements of Operations(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign currency exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Commission expenses
OthersTotal non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on bargain purchase
Gain on sales of investment securities
Gain on sales of subsidiaries and affiliates' stocks
Insurance income
Total extraordinary income
Extraordinary losses
Loss on change in equity
Loss from overseas remittance
Loss on sales of subsidiaries and affiliates' stocks
Loss due to transportation accidents
Loss on liquidation of businessTotal extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-8-

April 1, 2022 to
December 31, 2022

April 1, 2023 to
December 31, 2023

173,194
154,730
18,46321,005(2,542)

215,361
181,125
34,23520,753
13,481

97
213

254
225

1,669

3,422

4,659
901
7,540

431
706
5,039

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

3,167
2,912
750
6,830
11,690

644
2,798
1,336
4,780

1,944
2,056
4,000

274
1,026
107
1,408
2,923
809
2,113
(101)
2,215

1,075
665
1,741
13,9502,122
11,828163
11,665

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

ProfitOther comprehensive income
Net unrealized holding gains (losses) on securities
Unrealized gains (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-9-

April 1, 2022 to
December 31, 2022

April 1, 2023 to
December 31, 2023

2,113

11,828(556)(2,080)3,158(1,760)

688
106
3,500
(189)

26,1696,143

24,93027,044

10,24922,077

27,104(60)

21,886190

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.

(Notes in the Event of Significant Changes in Shareholders' Equity)
During the nine months ended December 31, 2023, share capital increased by 5,016 million yen and legal capital surplus increased by 1,254
million yen, respectively, due to the exercise of the 1st series of share acquisition rights with an exercise price amendment clause. As a result of theabove, share capital was 8,846 million yen and capital surplus was 11,804 million yen as of December 31, 2023.

(Application of Specific Accounting Treatment for Preparing Quarterly Consolidated Financial Statements)
After applying tax effect accounting to profit before income taxes for the fiscal year, which includes the 3rd quarter under review, the Company
makes a reasonable estimate of the effective tax rate and multiplies the profit before income taxes by that estimated effective tax rate. If the estimatedeffective tax rate is unavailable, the amount of the significant difference, other than temporary differences, etc. is added to or deducted from profit
before income taxes, and the result is multiplied by the statutory effective tax rate. Income taxes - deferred are included in the presentation of income
taxes.

(Segment Information)
I For the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
1. Information about sales and segment income or loss for each reportable segment(Millions of yen)
New
MarineBusiness
Propulsion
Development Systems

Logistics
Systems

Peripheral
Ocean
Businesses Development

Sub total

Others

Total

Adjustments Consolidated

Net Sales:
Outside customers

22,31370,14528,22938,046-

158,735

14,459173,194-

173,194

566

298

155

7,945

-

8,965

33

8,998

(8,998)-

Total

22,87970,44328,38545,991-

167,700

14,492

182,192

Segment income (loss)

1,770

1,394

(456)

(206)

762

3,263

(5,043)(1,780)Inter segment(8,998) 173,194(762)(2,542)

Notes 1: Segment income (loss) in "New Business Development," "Marine Propulsion Systems," "Logistics Systems," "Peripheral Businesses" and "Others"

represents "Operating income (loss)," and in "Ocean Development" represents "Share of profit (loss) of entities accounted for using equity method."
2: "Others" is the segment which is not included in Reportable Segment and includes Engineering businesses, etc.
3: Segment income (loss) is adjusted with operating loss in Quarterly Consolidated Statements of Operations.

2. Information about loss on impairment of non-current assets, goodwill, etc. for each reportable segment(Significant loss on impairment of non-current assets)
Not applicable.
(Significant changes in the amount of goodwill)
Not applicable.
(Significant gain on bargain purchase)
Not applicable.

- 10 -

II For the nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)
1. Information about sales and segment income or loss for each reportable segment(Millions of yen)
New
MarineBusiness
Propulsion
Development Systems

Logistics
Systems

Peripheral
Ocean
Businesses Development

Sub total

Others

Total

Adjustments Consolidated

Net Sales:
Outside customers

29,152

99,74930,16352,569-211,634

3,726

215,361-

215,361

849

453

538

10,491-

12,332(0)

12,332(12,332)-

Total

30,002100,20230,701

63,061-

223,967

3,726

227,694(12,332) 215,361

Segment income

3,491

4,993

1,034

2,024

2,760

14,304

1,937

16,241(2,760)Inter segment

13,481

Notes 1: Segment income (loss) in "New Business Development," "Marine Propulsion Systems," "Logistics Systems," "Peripheral Businesses" and "Others"

represents "Operating income (loss)," and in "Ocean Development" represents "Share of profit (loss) of entities accounted for using equity method."
2: "Others" is the segment which is not included in Reportable Segment and includes Engineering businesses, etc.
3: Segment income is adjusted with operating income in Quarterly Consolidated Statements of Operations.

2. Changes in Reportable Segment, etc.
(Changes in Classification of Reportable Segment)
Effective from 1st quarter of FY2023, the Company has changed the classification of its Reportable Segment from the previous 4 segments (Ship,
Ocean Development, Machinery and Engineering) to 5 new segments (New Business Development, Marine Propulsion Systems, Logistics Systems,
Peripheral Businesses and Ocean Development). This change was implemented to clarify the positioning of each business and to expand sales andprofits mainly in the core business in accordance with the policy in "Mid-Term Business Plan 2023."
Comparative segment information for the 3rd quarter of the previous fiscal year has been restated to reflect the changes.
3. Information about loss on impairment of non-current assets, goodwill, etc. for each reportable segment(Significant loss on impairment of non-current assets)
Not applicable.
(Significant changes in the amount of goodwill)
Not applicable.
(Significant gain on bargain purchase)Gain on bargain purchase was recognized in "Marine Propulsion Systems" due to the acquisition of all shares of Mitsui E&S DU Co., Ltd.,making it our consolidated subsidiary. The amount of the gain from the said event is 1,944 million yen in the 3rd quarter of FY2023. Gain on bargain
purchase is an extraordinary income and is not included in the segment income. This is a provisional amount as the purchase price allocation has notbeen completed as of the end of the 3rd quarter of FY2023.

(Significant Subsequent Events)
Not applicable.

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3. Supplementary Information
Information about new orders and sales(Percentages in FY2022 and FY2023 indicate composition ratio.)

New Orders
3rd quarter of FY2022

3rd quarter of FY2023(from April 1, 2022
to December 31, 2022)(from April 1, 2023
to December 31, 2023)

FY2022
Increase/Decrease

Changeratio(from April 1, 2022
to March 31, 2023)

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

31,492

14.7

37,234

16.3

5,742

18.2

42,192

13.1

90,97742.5

85,65337.6(5,324)(5.9)

139,575

43.3

Logistics Systems

39,464

18.5

58,72925.8

19,26448.8

49,441

15.3

Peripheral Businesses

40,47618.9

46,154

20.2

5,677

14.0

74,303

23.1

Ocean Development

-

-

-

-

-

-

-

-

Others

11,608

5.4

130

0.1

(11,478) (98.9)

16,8385.2

Total

214,019 100.0

227,902 100.0

13,882

6.5

322,351 100.0

3rd quarter of FY2022

3rd quarter of FY2023(from April 1, 2022
to December 31, 2022)(from April 1, 2023
to December 31, 2023)

Increase/Decrease

Changeratio

New Business
Development
Marine Propulsion
Systems

Sales
FY2022(from April 1, 2022
to March 31, 2023)

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

22,31312.9

29,152

13.6

6,839

30.7

34,865

13.3

70,14540.5

99,74946.3

29,603

42.2

97,69337.2

Logistics Systems

28,22916.3

30,163

14.0

1,933

6.8

41,653

15.9

Peripheral Businesses

38,04622.0

52,56924.4

14,52338.2

57,356

21.9

Ocean Development

-

-

-

-

-

-

-

-

Others

14,459

8.3

3,726

1.7

(10,732) (74.2)

30,733

11.7

Total

173,194 100.0

42,167

262,301 100.0

New Business
Development
Marine Propulsion
Systems

215,361 100.0

24.3

Order Backlogs
FY2022

3rd quarter of FY2023(as of March 31, 2023)(as of December 31, 2023)

Increase/Decrease

3rd quarter of FY2022
Changeratio (as of December 31, 2022)

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

28,8799.3

37,061

10.3

8,181

28.3

30,764

10.5

61,595

19.7

56,862

15.8(4,732)(7.7)

40,141

13.7

Logistics Systems

58,71518.8

86,97924.1

28,26348.1

62,82821.4

Peripheral Businesses

156,21550.1

176,42249.0

20,20712.9

142,244

48.5

Ocean Development

-

-

-

-

-

-

-

-

6,411

2.1

2,903

0.8

(3,507) (54.7)

17,466

5.9

48,412

293,444 100.0

New Business
Development
Marine Propulsion
Systems

OthersTotal

311,817 100.0

360,230 100.0- 12 -

15.5