Consolidated Financial Resultsfor 1st Quarter of Fiscal Year Ending March 31, 2025

August 8, 2024

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.

Highlights※ Steady start increased in Net Sales and Operating Income.

1st Quarter ofFYE Mar. 2025
Results

FYE Mar. 2025
ForecastTopics New Orders

85.9 Billion yen （ QoQ）

 Net Sales

70.1 Billion yen （ QoQ）

 Operating Income

4.3 Billion yen）

（ QoQ◆ New Orders

330 Billion yen (compared to May 14, 2024)◆ Net Sales

300 Billion yen (compared to May 14, 2024)◆ Operating Income

17 Billion yen (compared to May 14, 2024)

 Revision of Dividend Forecast (Dividend Increase) Sell-out of Affiliated Company Shares Newly released “MITSUI E&S Rolling Vision 2024”2

Summary of Results※ A substantial increase in bottom-line profits due to gain on sales ofaffiliated company shares.
(JPY: Billion)FYE Mar. 2024
1Q

FYE Mar. 2025
1Q

New Orders

92.8

85.9(6.9)

Net Sales

61.6

70.1

+8.5Operating Income (Loss)

1.7

4.3

+2.6

2.8%

6.1%

-0.6

8.7

+8.1

0.9%

12.4%

-0.9

28.8

+27.9

138.54 Yen

156.70 Yen

marginOrdinary Income (Loss)marginProfit attributableto owners of parent

Var.

＜Average FX＞
USD/JPY

3

Results Summary by Segment※ Although a little bit decreased QoQ, in the Logistics Systems segment, New
Orders have progressed steadily with the first large order from Bangladesh.
（JPY: Billion）
New Orders
FYE Mar.
2024
1Q

FYE Mar.
2025
1Q

New BusinessDevelopment

12.4

9.3

MarinePropulsion
Systems46.0

Logistics
Systems
PeripheralBusiness

Net SalesFYE Mar.
2024
1Q

FYE Mar.
2025
1Q

(3.1)

8.2

7.5

56.4+10.4

29.5

20.4

10.8

(9.6)

13.9

9.2

Others

0.1

Total

92.8

Operating Income
FYE Mar.
2024
1Q

FYE Mar.
2025
1Q

(0.7)

0.4

1.0+0.7

32.8

+3.3

1.8

2.4

+0.6

7.4

13.2

+5.7

(0.5)

0.8

+1.2

(4.7)

14.8

16.3

+1.5

0.5

0.3

(0.3)

00

1.7

0.3

(1.4)

(0.5)

(0.2)

+0.3

85.9

(6.9)

61.6

70.1

+8.5

1.7

4.3+2.6

Var.

Var.

Var.

4

Summary of Cash Flow
※ The cash-out of overseas civil engineering and construction project has
almost ended, and Free Cash Flow has considerably improved with some
restructuring of assets.
（JPY:Billion）

FYE Mar.
2024
1Q

FYE Mar.
2025
1Q

Var.

Operating CF(36.4)

(2.4)

+34.0

Operating CF was slightly negative due toan impact of the shortening of sight periodof trade notes with new guidance fromgovernment agencies. Positive if this impact
had been excluded.

Investing CF

0.5

69.6+69.0

Increase mainly due to sale of MODEC shares.

(35.8)

67.2+103.029.2(57.0)(86.2)

Free CF

Financial CF

Decrease mainly due to repayment of shortterm borrowings.

5

Summary of FYE Mar. 2025 Forecast※ Forecast of Free Cash Flow and Debt with interest (newly disclosed).
（JPY: Billion）
FYE Mar. 2025
Forecast
New Orders

330.0

Net Sales

300.0

Operating Income

17.0

Ordinary Income

18.0

Profit attributableto owners of parent

35.0Free CF76.0(Operating CF)

17.0

Debt with interest（JPY: Billion）
FYE Mar. 2025
Forecast bySegment

Net Sales

OperatingIncome

40.0

40.0

5.0Marine Propulsion
Systems

140.0

130.0

6.0

Logistics Systems

70.0

60.0

3.0

Peripheral
Business

80.0

70.0

3.0000

330.0

300.0

17.0

New BusinessDevelopment

OthersTotal

New Orders

100.0※ Exchange rate assumption: USD/JPY:145※ The US$/JPY exchange rate fluctuation has almost no impact on Operating Income.
6

FYE Mar. 2025 Forecast Progress※ Progress within plan for full-year forecasts.
0New
Orders50

FYE Mar.
2025

85.9

FYE Mar.
2024

92.8

50

FYE Mar.
2025

70.1

FYE Mar.
2024

61.6250300

Progress : 28%

100150200

250

Progress : 20%

301.9

4.3

1015Progress : 25%

17.0
1.7

Progress : 9%

19.6

1st Quarter

300350 （JPY: Billion）

FYE Mar. 2025 1Q:
Overall, progress was generally in line with plans
due to steady delivery of Marine Engines in theMarine Propulsion System segment. Large-scaleconstruction works are progressing steadily in
the Logistics Systems segment.

Progress : 23%5350 （JPY: Billion）

FYE Mar. 2025 1Q:
Good start mainly due to in the Marine
Propulsion Systems segment. We received manylarge Marine Engine orders. In the Peripheral
Business segment, projects are expected to beraised up from the 2nd quarter onward.

Progress : 26%

300.0

FYE Mar.
2025
FYE Mar.
2024

200337.00

OperatingIncome150

330.00Net
Sales

10020 （JPY: Billion）

FYE Mar. 2025 1Q:
The Marine Propulsion System segment posted
an increase in profit on higher revenues.
Profitability of large-scale construction projects
improved in the Logistics Systems segment.
Overall progress was favorable.

Full FY7

Revision of Dividend Forecast (Dividend Increase)※ Dividends forecast for FYE Mar. 2025
Common stock
Annual dividend

FYE Mar. 2024

FYE Mar. 2025

Actual results

Previous Forecast

Revised Forecast

5yen per share

12yen per share

18yen per share※ Key Management Issues
・ We will enhance returns to shareholders, while taking
account of capital investment, R&D investment andshareholders' equity in a comprehensive manner.
※ Background of dividend increase
・ Given the steady execution of our business and financial
strategies, we studied and revised our approach to dividend.
8Sell-out of Affiliated Company Shares

Sale period
MODEC Inc.

shareholding ratio
Before sale

After sale

May~June 2024

40.53%

3.66%

May 2024

20.00%

0.00%SOFEC Inc. *1)

total funds

gain on sale（Billion yen）

（Billion yen）

approx.
70.0

approx.
25.0*1) Company provides services related to the design, construction
and installation of various mooring systems including FPSOs.

※ Main use of funds
・ Repayment of short-term borrowings of 55.3 billion yen.
・ All of the Class A preferred shares (approx. 9.2 billion yen *2)) were acquired on July
10, 2024 and retired on the same day.
・ Investments in Container Cranes business in the global market including the US.
・ Investments for technical development and manufacturing of key components related
to the Marine Engines business.
・ Investment in human capital, such as human resource development along with theinstitutional reforms.
*2) Includes amount equivalent to accrued dividends
9Appendix）Summary of Income Statement※ In connection with the sale of MODEC shares, the company's investment
income was recognized by the end of the 1st Quarter of FYE Mar. 2025.
（JPY: Billion）
10

FYE Mar.
2024 1QFYE Mar.
2025 1Q

Var.

Net sales

61.6

70.1

+8.5

Gross profit

8.7

11.3

+2.6

Selling, general andadministrative expenses

7.0

7.00

Operating income

1.7

4.3+2.6

Non-operating income

1.6

5.7+4.0

Increase mainly due to investment income from MODEC.

Non-operating expenses

2.8

1.3(1.5)

Decrease in financial expenses mainly due to decrease indebt with interest.

Ordinary income

0.6

8.7+8.1

Extraordinary income

1.3

25.5+24.2

Extraordinary losses

0.7

1.3+0.6

Profit before income taxes

1.2

32.8+31.7

Income taxes

0.3

4.0+3.7000

0.9

28.8+27.9

Profit attributable tonon-controlling interests
Profit attributable toowners of parent

Increase in gain on sales of subsidiaries and affiliates’ stocks
mainly due to sale of MODEC shares.

10

Summary of Balance Sheet※ Equity capital ratio improved due to a reduction of debt with interest as aconsequence of selling assets, in addition to profit earned.
（JPY:Billion）

FYE Mar.
2024

FYE Mar.
2025 1Q

467.1

431.6

(35.5)（Cash and time deposits）

35.6

46.0

+10.5

（Notes and accounts receivables - trade,and contract assets）

96.3

87.8

(8.5)

（Fixed Assets）

131.6

130.9

(0.7)

(Investment securities)

76.1

26.0

(50.1)

320.6

262.7

(58.0)（Trade payables）

64.7

55.4

(9.3)

（Provision for losses on constructioncontracts）

4.3

3.3

(1.1)

（Debt with interest）

162.0

106.5

(55.5)

Total net assets

146.5

169.0

+22.5

（Equity）

142.0

164.5

+22.5

（Equity capital ratio）

30.4%

38.1%

Working capital (*)

67.3

69.2

Net D/E ratio

0.9

0.4

Total assets

Total liabilities

Var.

Decrease mainly due to sale of MODEC shares.

Decrease mainly due to repayment of short-term borrowings.

Increase mainly due to accumulation of retained earnings.

+1.9(*) Trade receivables(except Advances from customers) + Inventory - Trade payables

11Appendix） Marine Engines※ Steady delivery of Marine Engines in the 1st Quarter of FYE Mar. 2025.

FYE Mar. 2024
1Q
Horse
Power(10Kps)

Unit

FYE Mar. 2025
Forecast

FYE Mar. 2025
1Q
Horse
Power(10Kps)

Unit

Horse
Power(10Kps)

Unit

New Orders

5012742148ーー

Deliveries

3567

3880ーーBack logs

124242124300ーー

Production41783265

14630412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.