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.

June 21, 2024
Company name：Name ofrepresentative：
Inquiries:

MITSUI E&S Co., Ltd.
Takeyuki Takahashi, President,
Representative Director, and CEO(Securities code:7003, TSE Prime Market)
Masaki Fujihara, General Manager ofCorporate Planning Dept.
(TEL:+81-3-3544-3147)

Announcement of the Partial Sale of Shares Held (Interim Report)
MITSUI E&S Co., Ltd. (hereafter “MITSUI E&S”) previously announced that, with respect to thepartial sale of the shares it holds in MODEC, Inc. (hereafter “MODEC”), made public in the May 14,2024 press release “Announcement of the Partial Sale of Shares Held” and the May 22 interim report,
the company has granted the right to acquire additional shares to Nomura Securities, the leadunderwriter in this secondary offering.
As this right has been exercised, presented below are the details of the extraordinary income MITSUI
E&S expects to record on this sale.
1. Recording of extraordinary incomeNomura Securities’ exercise of its additional share acquisition right puts the total number of MODEC
shares sold through this secondary offering at 25,194,600. Accordingly, MITSUI E&S now expects
to record a gain on sale of shares in its equity-method affiliate amounting to approximately 39 billion
yen as extraordinary income in its non-consolidated financial statements for the fiscal year ending
March 31, 2025, while the extraordinary income to be recorded in its consolidated statements of thesame year as a gain on sale of shares in its equity-method affiliate is projected at approximately 23
billion yen.
2. Future outlook
The total funds of approximately 70 billion yen obtained through the sale of MODEC shares and thesale of SOFEC, Inc., shares as announced in the “Notice Regarding Recording of Gains on Sale ofAffiliate Shares (on Non-Consolidated Basis),” dated May 14, 2024, will be allocated in phases tothe following uses in order to facilitate MITSUI E&S’s business and financial strategies, as well as
the return of profits to our stakeholders. There is no revision to the Full-Year Consolidated FinancialResults Forecasts for FY2024.
(1)
The investments necessary to: i) further the expansion of the group’s port logistics businessin the global market including the US; ii) facilitate the technical development andmanufacturing of key components related to the marine propulsion business; and iii)
strengthen its supply chain(2)
Improve our financial soundness and significantly reduce financing costs from 2H FY2024
onward through large-scale reductions in interest-bearing debt and redemption of Class A
preferred shares in 1H FY2024(3)
Return profits to common shareholders and investments in human capital, centered aroundtalent development as well as improvements to housing support and other employee benefit
programs

MITSUI E&S projects that these initiatives will improve some of the metrics it set targets for in its
Mid-Term Business Plan 2023—specifically its equity ratio and net debt to EBITDA ratio at the endof FY2024— as shown in the table below, far surpassing both actual FY2023 figures and FY2025
targets. The company also expects its liquidity ratio, an important indicator of financial health, toexceed 100% at the end of FY2024 (vs. 79.6% for FY2023). MITSUI E&S believes that thesefundamental improvements to its group’s finances will generate a positive cycle that allows it to makeongoing investments, fortify its financial foundation through higher profits, and a gradual increase inshareholder returns. The proceeds of this partial sale of shareholdings will be used effectively toenhance enterprise value through the MITSUI E&S group’s evolution and continuation.
<Comparisons vs. targets in the Mid-term Business Plan 2023>
FY2025 target¥280bnFY2023 results FY2024 forecast
Sales¥301.9bn¥300bnOperating margin
6.5%
6.0%
5.7%
*1
Excl. temporary factors
5.1%
Equity ratio
26.0%
30.4%
36.9%
*2
Net debt to EBITDA ratio
5.0x
4.7x
2.5x
*1: Temporary factors consist of gain on reversal of provision for loss on overseas civil engineering
construction and positive difference in past service cost due to the extension of retirement.
*2: Net debt to EBITDA ratio = (Balance of interest-bearing debt - cash and cash deposits) ÷ (Operatingincome + depreciation/amortization)