Consolidated Financial Resultsfor Fiscal Year Ended March 31, 2023

May 15, 2023

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

Table of Contents
 Consolidated Financial Resultsfor FYE Mar. 2023

Page



Highlights

3

Summary of Results

4Operating Income comparison of initial forecast and5

results for FYE Mar. 2023
Summary of Balance Sheet6Summary of Cash Flow7



Results Summary by Segment

8-11



Status of large coal-fired power plant civil

12 AppendixPageCAPEX, R&D & Employees

17Market Share of Mitsui E&S Group18

Marine Diesel Engines

19Historical Data

20-21

engineering construction projects



Reorganization and Segment Change

13-14 FYE Mar. 2024 Forecast

Summary of FYE Mar. 2024 Forecast

15Summary of FYE Mar. 2024 Forecast by Segment

162

Highlights※ Decrease in sales and increase in profit in FYE Mar. 2023, and increase in
Operating Profit in FYE Mar. 2024.

FYE Mar. 2023
Results

FYE Mar. 2024Forecast

New Orders322.4 Billion yen （ YoY）

Net Sales

262.3 Billion yen （ YoY）

Operation Income

9.4 Billion yen （ YoY）

◆ New Orders

320 Billion yen (compared to FYE Mar. 2023)◆ Net Sales

280 Billion yen (compared to FYE Mar. 2023)

10 Billion yen (compared to FYE Mar. 2023)◆ Operation IncomeTopics

 Reinstating dividend for FYE Mar. 2023
 Reorganization and Segment Change3

Summary of Results(JPY: Billion)FYE Mar.
2022

FYE Mar.
2023

Var.

New Orders

511.1

322.4(188.7)

Net Sales

579.4

262.3(317.1)

Operating
Income (Loss)(10.0)

9.4+19.4(margin)(1.7%)

3.6%

Ordinary
Income (Loss)(25.7)

12.5(margin)(4.4%)

4.8%

Profit attributableto owners of parent(21.8)

15.6＜Average FX＞
USD/JPY113.22Yen

133.18Yen

+38.3

+37.4

 New Orders
Machinery segment recovered significantly
due to the firm shipping market, but totally
decreased compared YOY due to the removalof MODEC from consolidated subsidiary.

 Net Sales
Machinery segment performed well due tofirm orders, but sales decreased YOY due toprogress of business revival plan, such as theremoval of MODEC from consolidatedsubsidiary.

 Operating Income (Loss)
Profit increased compared YOY due toprogress in the settlement of various
undetermined costs at the engineering
segment.

4

Operating Income comparison between initial forecast andresults for FYE Mar. 2023.
※ Significant increase compared to initial forecast mainly due to improved
profit in the Engineering segment.
Engineering

Mainly due to progress inthe settlement of various
undetermined costs+3.5

Machinery

Ship

Improvement dueto a shift to fablessengineeringbusiness

Increase due tofirm after-salesservice business

+1.1

+0.4

Others

Mainly due todeterioration ofoverseas
subsidiaries(0.6)

0(JPY: Billion)

Initialforecast

5.0

FYE Mar. 2023
Results

+4.4

9.4
5

Summary of Balance Sheet※ Shareholders' equity to total assets ratio recovered to 24%.
FYE
Mar.
2022

FYE
Mar.
2023

Var.

409.2

440.0

+30.8

（Cash and time deposits）

51.8

45.8

(6.0)

（Work in progress）

36.6

46.8

+10.2

（Fixed Assets）

134.4

131.3

(3.1)

43.3

68.8

+25.5

346.2

329.3

(16.9)

4.1

39.3

+35.2

（Contract liabilities）（Provision for losses on
construction contracts）

30.9

25.3(5.6)

59.6

14.0(45.6)（Debt with interest）

142.4

141.5

(0.8)

Total Net Assets

62.9

110.7

47.7（Equity）

57.1

106.4

+49.3

14.0%

24.2%

1.6

0.9

Total Assets(Investment securities)
Total Liabilities(Accrued expenses)

Shareholders' equity to total assets ratio

Net D/E Raito（JPY:Billion）

Increase mainly due to workload of marine diesel engines.

Increase mainly due to unrealized gains on hedging
derivatives and foreign currency exchange adjustments.
Increase mainly due to transfer from provision for losses onconstruction contracts.
Decrease due to progress in the settlement of various
undetermined costs of project in Indonesia.

Increase mainly due to issuance of class A preferred shares,
unrealized gains on hedging derivatives and foreign
currency exchange adjustments.

6

Summary of Cash Flow
※ Free cash flow was negative, mainly due to expenditures for

project in Indonesia.

（JPY:Billion）

FYE Mar.
2022
Operating CF(20.3)FYE Mar.
2023(15.0)

増減
Increase mainly due to strong New Orders in+5.2 the Machinery segment.

Investing CF(70.9)

(3.0)

+67.9

Free CF(91.2)(18.0)

+73.1

0.8

9.5

+8.7

Financial CF

Increase due to the deduction of the balanceof cash due to the removal of MODEC fromconsolidation subsidiary in
FYE Mar. 2022.

Increase mainly due to issuance ofclass A preferred shares.

7

Results Summary by Segment※Excluding the impact of the removal of MODEC from consolidation, both New Orders
and Net Sales were firm, and Operating Income returns to profit.
New Orders
FYE Mar.
2022

FYE Mar.
2023

Ship (*1)

19.5

8.4OceanDevelopment (*2)

270.7

MachineryFYE Mar.
2023(11.1)

28.1

6.6ー(270.7)

323.3

148.8

231.2

+82.4

Engineering

1.7

6.7

Others70.4

Total
Exclude Ocean
Development

Operating
Income (Loss)

Net SalesFYE Mar.
2022（JPY: Billion）

FYE Mar.
2022 3Q

FYE Mar.
2023 3Q(21.5)

(0.4)

0.1

+0.5

ー

(323.3)

(8.1)

ー+8.1

153.7

174.2

+20.5

8.2

8.4

+0.2

+5.0

7.6

22.4

+14.8

(10.8)

0.5+11.4

76.0+5.6

66.6

59.1

(7.5)

1.1

0.4(0.8)

511.1

322.4

(188.7)

579.4

262.3

(317.1)(10.0)

9.4

+19.4

240.4

322.4

+82.0

256.0

262.3

+6.3

(1.9)

9.4

+11.3

Var.

Var.

Var.

(*1) Mitsui E&S Shipbuilding had been removed from consolidated subsidiary since 3Ｑ of FYE Mar. 2023.
(*2) MODEC had been removed from consolidated subsidiary since 4Ｑ of FYE Mar. 2022.
8

Ship

Main products:Commercial Ship/Government Ship
Ship Repairs

FYE Mar. 2022

FYE Mar. 2023

 New Orders :YoY (11.1)

Net Sales

New Orders

24.1

28.1

20.4

19.5
12.8
9.4 8.4
3.6

8.4

8.4

5.6

1Q

6.6

6.6

6.6

3.3

2Q

3Q

4Q

3Q

4Q

Operating
Income(Loss)
1Q

9.0

2Q

0.2

0.1

0.1

0.1

0.0 0.0△ 0.2

1Q

Due to the partial transfer of Mitsui E&S
Shipbuilding's stock to Tsuneishi Shipbuilding(after the transfer shareholding became34%), Mitsui E&S Shipbuilding was removed
from consolidation from 3Q FYE Mar. 2023.
As a result, new orders decreased YOY.

 Net Sales :YoY (21.5)
2Q

3Q

4Q

New Sales decreased YOY due to a fall of inthe workload associated with the withdrawal
from the shipbuilding business and the impactof removal from consolidation.

 Operating Income (Loss) :YoY ＋0.5
Although sluggish in the previous year due tolosses related to shipbuilding, operating
income increased YOY due to focus on thefabless engineering for commercial shipbusiness.

△ 0.4

9

Main products:Marine Diesel Engine, Container Crane,
Industrial Machinery,
These after-sales service

MachineryFYE Mar. 2022
New Orders

FYE Mar. 2023
231.2

161.9

Net Sales
174.2
153.7

148.8

120.7
107.6

114.2 110.5
82.074.2

71.3 75.3

37.2

1Q

2Q

3Q

4Q

8.28.4

3.6
1.5 1.8

2Q

1Q

2Q

3Q

4Q

 Net Sales : YoY +20.5
Net Sales increased YOY due to firm sales
and new orders of Marine Diesel Engines,
and progress in container craneconstruction for Long Beach Bay in the U.S.

 Operating Income (Loss) :YoY +0.2
2.8

△ 0.8

1Q

Sales of Marine Diesel Engines recovered
significantly due to an increase in neworders from domestic shipyards.
Additionally after-sales service businessperformed well mainly due to firm sales ofparts complying with environmental
regulations, resulting in an increase YOY.

38.2 35.8

OperatingIncome(Loss)

0.6

 New Orders : YoY +82.4

3Q4Q

Marine diesel engine manufacturing business
was weak, due to severe conditions bydomestic shipyards at their low ship prices.
After-sales service business for all
machinery products was strong. As a result,operating income increased YOY.

10

Engineering

Main products:Environmental Energy, Infrastructure

FYE Mar. 2022

FYE Mar. 2023

New Orders

 New Orders :YoY +5.0

Net Sales
22.4

6.7
0.2 0.0

1Q

2.7

1.2 2.1 1.5 1.9 1.72Q

3Q

4Q

3Q

4Q

OperatingIncome(Loss)
1Q

2Q

0.5

4.7 5.1

6.9 6.7 7.6

 Net Sales :YoY +14.8

1.7

1Q

Although we are not currently engaged inactivities to new projects, New Orders
increased YOY due to recovery of costs andexpenses for coal-fired power plant civilengineering construction projects inIndonesia.

2Q

3Q

4Q

Increased YOY due to progress in costs
settlement for civil engineering andconstruction work for a coal-fired power plantsfor Indonesia.

 Operating Income (Loss) :YoY +11.4

△ 0.2
△ 3.4
△ 5.0
△ 5.4

△ 5.4
△ 9.6

Increased YOY due to progress in costsettlement for civil engineering andconstruction work for a coal-fired power
plants for Indonesia.

△ 10.811

Status of large coal-fired power plant civil engineering
construction projects in Indonesia
Commercial operation had already started, therefore the risk has been reduced significantly.
As a result of making efforts to fix undetermined costs by proceeding with cost settlement withrelated counterparties and utilizations of foreign currency exchange contracts, etc., Net Sales
increased and Operating Income improved in Engineering segment.
※Decrease in balance of provision for losses on construction contracts and improved profitability As a result of proceeding cost settlements with related counterparties, the undetermined
costs were fixed and provision for losses on construction contracts decreased.
 Profitability improved due to recovery of costs and expenses that have been recorded inprovision for losses on construction contracts.
（JPY:Billion）

Balance of provision for losses onconstruction contracts

4Q FYE Mar. 202２

4Q FYE Mar. 2023

Var.

58.4

12.8

(45.6)※Future outlook
 Remaining works are limited to minor items not impacted directly on commercial operations,and are being steadily constructed in accordance with schedule of commercial operation.
 Details of the construction will continue to be undisclosed due to confidentiality obligations
associated with the contract, but risks and variable factors related to this project havedecreased significantly.
12

Reorganization and Segment Change
・MITSUI E&S New Organization from April 1, 2023
※ Three business divisions are organized directly under management level to promote growthstrategies speedily.
※ Three after-sales service departments are organized under three business divisions to enhanceeach service business.

Board of Directors

7 Directors (including 3 Outside Directors)

New Business
Development Div.

Marine Propulsion
Systems Div.

Logistics
Systems Div.

・Advanced products(radar, robot, etc.)
・Industrial Machinery(reciprocating compressor, etc.)
・After-Sales Service

・Marine Diesel Engine
・After-Sales Service

・Container Crane
・After-Sales Service

Corporate Div.

13

Reorganization and Segment Change
・Segment changed from FYE Mar. 2024.
※ Segment information is disclosed in line with the new organization by splitting the former
Machinery Division into three business units.

New Business Development・Advanced products, Industrial Machinery(After-Sales Service Included)

Machinery

Marine Propulsion Systems

・Marine Diesel Engine (After-Sales Service Included)

Logistics Systems

・Container Crane (After-Sales Service Included)

OthersEngineering
ShipOceanDevelopment
Previous Segment

Peripheral Business・Peripheral services subsidiary for the machinery business

Others・Equity profit from Mitsui E&S Shipbuilding will be captured in the
Others segment

Ocean Development

・Equity profit from MODEC will be captured in the Ocean Development
segment
New Segment
14

Summary of FYE Mar. 2024 Forecast※ Continuous profitability by expanding business into the periphery of strong
products.
（JPY:Billion）

FYE Mar. 2023
ActualFYE Mar. 2024
ForecastVar.

New Orders

322.4

320.0(2.4)

Net Sales

262.3

280.0+17.7

Operating Income

9.4

10.0+0.6

Ordinary Income

12.5

4.0

(8.5)

Profit attributableto owners of parent

15.6

3.0

(12.6)(43.0)(25.0)

171.0

+29.5

Free CF(18.0)

Debt with interest

141.5

(*1)

(*1) Due to temporary expenditure for project in Indonesia.
※ Exchange rate assumption: USD/JPY:135※ The US$/JPY exchange rate fluctuation has almost no impact on Operating Income.
15Summary of FYE Mar. 2024 Forecast by Segment※ Secure stable profits by recovering profit of Marine Diesel Engines andstrengthening the service business for each product.
（JPY:Billion）

New Orders
FYE Mar.
2023
ActualFYE Mar.
2024
Forecast

FYE Mar.
2023
ActualFYE Mar.
2024
Forecast

42.2

40.0(2.2)

34.9

30.0

Marine Propulsion
Systems

139.6

160.0

+20.4

97.7

Logistics Systems

49.4

50.0

+0.6

Peripheral
Business

74.3

70.0

Others16.8

Total322.4

New BusinessDevelopment

OperatingIncome (Loss)

Net SalesFYE Mar.
2023
ActualFYE Mar.
2024
Forecast

(4.9)

4.3

3.0(1.3)

130.0+32.3

2.6

4.0+1.4

41.7

50.0+8.3

1.4

1.0(0.4)

(4.3)

57.4

60.0+2.6

0.7

2.0+1.30(16.8)

30.7

10.0(20.7)

0.4

0(0.4)

320.0

(2.4)

262.3

280.0

+17.7

9.4

10.0+0.6

Var.

Var.

Var.

16Appendix) CAPEX・R&D・Employees※ The production facilities for Marine Diesel Engines will be expanded tomeet market demand.
（JPY : Billion）

FYE Mar. 2022
ActualFYE Mar. 2023
ActualFYE Mar. 2024
ForecastCAPEX

9.0

7.4

11.0

R&D

2.1

1.8

3.2

6,665

5,747ー

Number of Employees

17Appendix）Market Share of Mitsui E&S Group※ Maintain the top domestic market share forboth Marine Diesel Engines and Container Cranes.
Jan. to Dec. 2022
Marine Diesel Engines share in Japan

From April, 2022 to March, 2023
Domestic Order share of Gantry Crane(PORTAINER®) in Japan

Source: KP data（2 stroke engine）

Other
27%
Other
31%

MES
55%

Makita**12%
IHI Power Systems* 2%*Mitsui E&S DU, which inherited IHI's large marine
diesel engine business, will become a consolidated
company from FYE Mar. 2023.
**Makita is sub-licensee of MES

MES73%
From April, 2022 to March, 2023
Domestic Order share of Transfer Crane(TRANSTAINER®) in Japan

Other19%

MES
81%
18Appendix）Marine Diesel Engines※ Mitsui E&S DU joins our group and expects to increase production in
FYE Mar. 2024.
Marine Diesel Engines
FYE Mar. 2021
ActualFYE Mar. 2022
ActualHorse Power(10Kps)Unit

FYE Mar. 2023
Forecast

Horse Power(10Kps)

Unit

Horse Power(10Kps)

Unit

New Orders

73196

198392ーーDeliveries

120274129280ーーBack logs

214390154ーーProduction

122267136283160

325

19Appendix）Historical data
※ Scale of sales has decreased due to the progress of business restructuring,
but returned to profitability.
＜New Orders・Net Sales・Operating Income ＞（JPY: Billion）（JPY: Billion）

1,000

40

900
20

800
700

＜Net Sales・Total Assets・Total Asset turnover ＞（JPY: Billion）（Ratio）

1,000

1.50

900

1.40

800

1.30

700

1.20

600

1.10

500

1.00

400

0.90

300

0.80

200

0.70

100

0.60

0600
500

(20)

400
(40)

300
200

(60)

100

00(80)

2018

2019

2020

2021

2022

2018

201920202021

2022

Net Sales

657

787

645

579

262

New Orders

710

997

577

511

322

Total Assets

999

840

759

409

440

Net Sales

657

787

645

579

262

Operating Income

(60)

(62)

(12)

(10)

9

Total Assetturnover

0.66

0.94

0.85

1.42

0.60

New Orders(Left axis)

Net Sales(Left axis)

Operating Income(Right axis)

Net Sales(Left axis)

Total Assets(Left axis)

0.50

Total Asset turnover(Right axis)

20Appendix）Historical data
※ Net liability with interest increased due to expenditures related to project inIndonesia, but the Net D/E Ratio improved.
＜Net Debt・Equity・Net D/E ratio＞＜Cash Flow＞（JPY: Billion）（Ratio）

160

2.0（JPY: Billion）

100
80
60

120

1.5
40
20

80

01.0(20)(40)
400.5(60)(80)

00.0(100)

2018

2019

2020

2021

2022

66

(37)

8(20)

(15)

84

21(71)

(3)

(27)

(7)

11029(91)

(18)

2018

2019

2020

2021

2022

Net Debt

104

56

27

91

96

EquityInvesting CF

160

64

64

57

106

(0)

Net D/E Ratio

Financial CF

0.7

0.9

0.4

1.60.9(53)Free CF6647

Net Debt(Left axis)

Equity(Left axis)

Net D/E Ratio

Operating CF

Operating CF

Investing CF

Financial CF

Free CF(Right axis)

21

In this document, performance forecasts, targets, plans, strategies, etc. of the Company in regard to the future containforward-looking statements. These are forecasts that the Company reasonably determined based on information available
at the present time and include both known and unknown risks and uncertainties. Accordingly, actual results ordevelopments of our company in the future could differ significantly.