Interim report
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Note: Company name: MITSUI E&S Co., Ltd. Listing: Tokyo Stock Exchange Securities code: URL: https://www.mes.co.jp/ Representative: Takeyuki Takahashi, President, Representative Director, and CEO Inquiries: Kazuo Hayashi, Executive Officer, General Manager of Accounting Dept. Telephone: +81-3-3544-3210 Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated Financial Results for the Three Months Ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (1) Consolidated Operating Results (cumulative) (Percentages indicate year-on-year changes.) Three months endedMillions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 June 30, 2025 Note: Comprehensive income For the three months ended June 30, 2026: million For the three months ended June 30, 2025: million Three months ended Yen Yen June 30, 2026 June 30, 2025 (2) Consolidated Financial Position As of Millions of yen Millions of yen % June 30, 2026 March 31, 2026 Reference: Equity As of June 30, 2026: million As of March 31, 2026: million 2. Dividends Fiscal year ended/ending Yen Yen Yen Yen Yen March 31, 2026 March 31, 2027 March 31, 2027 (Forecast) Note: Revisions to the most recently announced dividends forecasts: None 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. August 3, 2026 30.00 60.00 Fiscal year-end 7003 80.87 71.50 17.2 Consolidated Financial Results for the Three Months Ended June 30, 2026 (Under Japanese GAAP) Earnings per share 57.00 - 30.00 Total 106.9 91,712 81,151 (¥ 895) ¥ 9,550 13.0 13.1 (74.9) [ -% ] [ (62.2%)] Net sales Operating income 10,178 14.4 8,896 11,657 14.9 10,148 8,160 7,214 Ordinary income Profit attributable to owners of parent 15.8 Annual dividend per share - 15.00 - 42.00 - 80.86 Earnings per share (diluted) 464,257 228,624 494,554 233,819 48.2 46.3 71.48 Total assets Net assets Shareholders' equity to total assets ratio - ¥ 223,873 ¥ 229,074 First quarter-end Second quarter-end Third quarter-end
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3. Forecasts for Financial Results (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Fiscal year ending % % % % Yen March 31, 2027 Note: Revisions to the most recently announced forecasts for financial results: Yes Reference: Estimate is based on exchange rate of USD1.00 = JPY158.0 * Notes (1) Significant changes in the scope of consolidation during the period: None Newly included: - Excluded: - (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates, and restatement i ) Changes in accounting policies due to revisions of accounting standards and other regulations: None ii ) Changes in accounting policies due to other reasons: None iii ) Changes in accounting estimates: None iv ) Restatement: None (4) Number of issued shares (common stock) i ) Number of issued shares at the end of the period (including treasury stock) As of shares June 30, 2026 March 31, 2026 ii ) Number of treasury stock at the end of the period As of shares June 30, 2026 March 31, 2026 iii ) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended shares June 30, 2026 June 30, 2025 * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary) * Proper use of earnings forecasts, and other special matters (Notice regarding forward-looking statements) (Where to get the supplementary explanatory materials) Supplementary material was posted on TDnet (Timely Disclosure Network) on the same day and is also available on our website. 307.23 Net sales 370,000 4.8 Operating income Millions of yen Millions of yen 2,195,722 Millions of yen Earnings per shareOrdinary incomeProfit attributable to owners of parent 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. Please refer to "1. Overview of Operating Results and Others, (3) Explanation of Forecasts for Consolidated Financial Results and Other Forward-Looking Statements" on page 4 (attached materials) for the assumptions used in forecasting business results and precautions regarding the use of business results forecasts, etc. (9.7)34,000 (19.4) Millions of yen 2,196,032 100,902,826 100,892,502 103,098,717 103,098,717 39,000 (13.1) 31,000
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Table of Contents of Appendix 1. Overview of Operating Results and Others …………………………………………………………………… 2 (1) Overview of Operating Results for the Three Months Ended June 30, 2026 ………………………....... 2 (2) Overview of Financial Position for the Three Months Ended June 30, 2026 …………………….…..... 3 (3) Explanation of Forecasts for Consolidated Financial Results and Other Forward-Looking Statements ... 4 2. Quarterly Consolidated Financial Statements and Major Notes ………………………………………………. 5 (1) Quarterly Consolidated Balance Sheets ……………………………………………………………........ 5 (2) Quarterly Consolidated Statements of Operations and Comprehensive Income ………………………... 7 Quarterly Consolidated Statements of Operations …………………………………………………........ 7 Quarterly Consolidated Statements of Comprehensive Income ……………………………………........ 8 (3) Quarterly Consolidated Statements of Cash Flows ……………………………………………………... 9 (4) Notes to Quarterly Consolidated Financial Statements …………………………………………………. 11 (Notes on Going Concern Assumption) …………………………………………………………………. 11 (Notes in the Event of Significant Changes in Shareholders' Equity) ………………………………….... 11 (Notes on Application of Specific Accounting Treatment for Preparing Quarterly Consolidated Financial Statements) ……………………………………………………………………………………. 11 (Notes on Segment Information, etc.) ……………………………………………………………………. 11 (Notes on Significant Subsequent Events) ………………………………………………………………. 12 3. Supplementary Information ………………………………………………………………………………….... 13 - 1 -
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1. Overview of Operating Results and Others (1) Overview of Operating Results for the Three Months Ended June 30, 2026 The global economy during the three months ended June 30, 2026, maintained moderate growth overall, primarily backed by solid capital investment and consumer spending centered in the U.S., despite ongoing conflicts in some regions. The domestic economy is also gradually recovering, supported by a recovery in consumer spending backed by improvements in the employment and income environment and solid results in corporate profitability. On the other hand, geopolitical risks surrounding the U.S. and Iran have yet to be fully resolved, leaving lingering uncertainty about the future, including price trends in each country around the world, the direction of monetary policy, trends in the Chinese economy, and the impact that fluctuations in interest rates may have on corporate activities. In the shipbuilding industry, which is closely related to the Group’s Marine Propulsion Systems business, initiatives aimed at the expansion of shipbuilding capacity and the improvement of productivity are accelerating, driven by the promotion of the “Shipbuilding Industry Revitalization Roadmap.” Additionally, shipyards in Japan continue to maintain a high volume of work on hand, with some shipyards having received orders for new ships with delivery dates in 2030. In Logistics Systems business, the Group continues to maintain its competitive edge in the U.S. market, while demand remains strong in the Asian region and Japan, mainly due to new construction, the expansion of existing facilities, and the replacement of aging facilities. The order environment for the Group’s core businesses is expected to remain favorable for the time being. While attention must be paid to factors such as developments in the international situation and sudden fluctuations in interest and exchange rates, the Group is dealing with each risk appropriately through measures such as maintaining interest-bearing debt at an appropriate level and using forward exchange contracts. Under such a management environment, the Group is promoting further growth for its core businesses and expansion of its new business domains, based on the “MITSUI E&S Rolling Vision 2026” announced in May 2026. Under the plan, by utilizing both marketing and innovation, we are working to strengthen the competitiveness of our core businesses, the Marine Propulsion Systems and Logistics Systems businesses, and to expand the maintenance and service business utilizing digital technology and to create new growth opportunities. Additionally, under management conscious of the cost of shareholders’ equity and the cost of debt, the Group will advance business operations with a focus on ROIC and aggressive growth investments, aiming for sustainable improvement of its corporate value. In Marine Propulsion Systems business, the Group is expanding its dual fuel engines, such as LNG, LPG and methanol dual fuel engines, as well as peripheral equipment businesses based on green technology, in addition to promoting the enhancement of development and production systems to accommodate ammonia fuel, which is expected to be a zero-emission fuel in the future. Additionally, in the after-sales service field, the Group is working to expand its earnings base against a background of high demand. In Logistics Systems business, the Group is promoting the expansion of its production capabilities and the enhancement of its supply system to respond to strong demand mainly in the U.S. and Asia regions. Additionally, the Group is promoting the expansion of its product lineup by utilizing green and digital technologies, including remotely controlled and automated cranes, as well as environmentally friendly cranes, in addition to working to further expand its market share and strengthen its profitability in the global market. In New Business Development business, the Group will strengthen the maintenance and inspection-service areas using digital technology. The Group is working to build a medium- to long-term earnings base by expanding businesses such as equipment inspection solutions and remote monitoring services, in addition to acquiring new business opportunities in the energy conversion field. Orders received during the three months ended June 30, 2026 increased by 16,231 million yen (up 18.3%) year on year to 105,029 million yen. Net sales were 91,712 million yen, an increase of 10,561 million yen (up 13.0%) year on year, mainly due to the steady progress in the construction of blast furnace blowers for steelworks and the after-sales service in New Business Development, as well as the steady progress of domestic ship block manufacturing projects and construction projects at overseas subsidiaries in Peripheral Businesses. Operating income increased by 1,282 million yen (up 14.4%) year on year to 10,178 million yen mainly due to an increase in net sales, and improved profitability in New Business Development and Peripheral Businesses. Ordinary income was 11,657 million yen, an increase of 1,509 million yen (up 14.9%) year on year, mainly due to an increase in operating income. Profit attributable to owners of parent was 8,160 million yen, an increase of 946 million yen (up 13.1%) year on year. - 2 -
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The overview by reportable segment is as follows. (New Business Development) Orders received increased by 849 million yen (up 9.3%) year on year to 10,003 million yen, mainly due to an increase in construction equipment engines. Net sales increased by 3,414 million yen (up 42.0%) year on year to 11,547 million yen, driven by steady progress in the construction of blast furnace blowers for steelworks and in the after-sales service business. Operating income increased by 1,040 million yen (up 102.7%) year on year to 2,052 million yen, mainly due to improved profitability of construction projects. (Marine Propulsion Systems) Orders received increased by 25,805 million yen (up 62.4%) year on year to 67,141 million yen. Net sales increased by 2,563 million yen (up 6.7%) year on year to 40,571 million yen, mainly due to growth in methanol-fueled engines. Operating income decreased by 287 million yen (down 7.0%) year on year to 3,828 million yen, mainly due to the impact of rising material and equipment costs. (Logistics Systems) Orders received decreased by 9,551 million yen (down 45.6%) to 11,395 million yen, mainly due to the receipt of a large-scale project in the same period of the previous fiscal year. Net sales increased by 1,336 million yen (up 8.4%) year on year to 17,194 million yen, mainly due to the steady progress of large-scale construction projects. Despite the impact of rising material and equipment costs, operating income increased by 112 million yen (up 3.8%) year on year to 3,051 million yen, mainly due to an increase in net sales. (Peripheral Businesses) Orders received decreased by 860 million yen (down 5.0%) year on year to 16,442 million yen, mainly due to the receipt of a large-scale construction project in the same period of the previous fiscal year. Net sales increased by 3,256 million yen (up 17.0%) year on year to 22,363 million yen, mainly due to the steady progress of domestic ship block manufacturing projects and construction projects at overseas subsidiaries. Operating income increased by 725 million yen (up 82.9%) year on year to 1,600 million yen, mainly due to an increase in net sales. (2) Overview of Financial Position for the Three Months Ended June 30, 2026 i) Assets, Liabilities and Net Assets Total assets as of June 30, 2026, were 464,257 million yen, decreased by 30,296 million yen from the end of the previous fiscal year. This was mainly due to decreases in cash and time deposits by 18,790 million yen and investment securities by 13,724 million yen. Total liabilities were 235,633 million yen, decreased by 25,101 million yen from the end of the previous fiscal year. This was mainly due to decreases in short-term borrowings by 12,000 million yen and trade payables by 3,253 million yen. Total net assets were 228,624 million yen, decreased by 5,195 million yen from the end of the previous fiscal year. This was mainly due to dividends paid and a decrease in net unrealized holding gains on securities despite the recording of profit attributable to owners of parent. ii) Cash Flows Cash and cash equivalents (hereinafter, “cash”) as of June 30, 2026, were 35,706 million yen, decreased by 18,883 million yen from the end of the previous fiscal year. The summary of cash flows during the three months ended June 30, 2026 were as follows. (Cash flows from operating activities) Net cash used in operating activities during the three months ended June 30, 2026 was 1,375 million yen (14,539 million yen was provided in the same period of the previous fiscal year). This was mainly due to outflows from a decrease in other liabilities and income taxes paid, despite inflows from the recording of profit before income taxes and an increase in contract liabilities. (Cash flows from investing activities) Net cash used in investing activities during the three months ended June 30, 2026 was 860 million yen (5,458 million yen was provided in the same period of the previous fiscal year). This was mainly due to outflows from capital expenditure. (Cash flows from financing activities) Net cash used in financing activities amounted to 16,788 million yen during the three months ended June 30, 2026 (3,130 million yen was used in the same period of the previous fiscal year). This was mainly due to outflows from repayments of short- term borrowings and dividends paid. - 3 -
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(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 "Notice Concerning Revisions to Full-Year Consolidated Financial Results Forecasts for FY2026" which was announced on August 3, 2026. i) Reasons for revisions The consolidated results for the first quarter of FY2026 progressed steadily, as projects proceeded smoothly across each segment. In addition, while procurement and cost escalation risks related to the situation in the Middle East had been conservatively incorporated into the Company’s assumptions, actual developments have remained within its expectations. Following a detailed review of the potential impact, the Company has decided to revise its forecasts upward for Operating income, Ordinary income, and Profit attributable to owners of parent for Logistics Systems segment for the fiscal year ending March 31, 2027. With respect to the dividend payout ratio, the Company’s policy of maintaining a target dividend payout ratio of 20% remains unchanged. Accordingly, any revision to the dividend forecasts will be announced at an appropriate time. In addition, the foreign exchange rate assumption underlying these forecasts has been revised from 150 yen to 158 yen per U.S. dollar. ii) Forecasts for consolidated financial results for FY2026 (From April 1, 2026 to March 31, 2027) Net sales Operating income Ordinary income Profit attributable to owners of parent Earnings per share Millions of yen Millions of yen Millions of yen Millions of yen Yen Previous forecasts (A) 370,000 32,000 37,000 30,000 297.33 Revised forecasts (B) 370,000 34,000 39,000 31,000 307.23 Change (B-A) - 2,000 2,000 1,000 Change ratio (%) - 6.3 5.4 3.3 (Reference) Actual results for FY2025 353,196 37,641 44,892 38,456 381.15 iii) Forecasts for consolidated financial results by segment for FY2026 (From April 1, 2026 to March 31, 2027) (Millions of yen) Previous forecasts Revised forecasts Change Net sales Operating income Net sales Operating income Net sales Operating income New Business Development 45,000 8,000 45,000 8,000 - - Marine Propulsion Systems 160,000 12,000 160,000 12,000 - - Logistics Systems 70,000 8,000 70,000 10,000 - 2,000 Peripheral Businesses 95,000 4,000 95,000 4,000 - - Others 0 0 0 0 - - Total 370,000 32,000 370,000 34,000 - 2,000 Note : 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. - 4 -
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2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and time deposits 57,055 38,265 Notes and accounts receivables - trade, and contract assets 90,925 91,743 Electronically recorded monetary claims - operating 4,329 4,216 Merchandise and finished goods 10,311 10,508 Work in progress 60,337 59,998 Raw materials and supplies 7,207 6,838 Others 16,580 16,410 Allowance for doubtful accounts (506) (504) Total current assets 246,241 227,478 Non-current assets Property, plant and equipment Land 58,561 58,232 Others, net 49,685 49,663 Total property, plant and equipment 108,247 107,896 Intangible assets Goodwill 6,196 5,976 Others 7,597 7,390 Total intangible assets 13,793 13,367 Investments and other assets Investment securities 55,005 41,280 Others 72,383 75,351 Allowance for doubtful accounts (1,116) (1,116) Total investments and other assets 126,272 115,515 Total non-current assets 248,313 236,779 Total assets 494,554 464,257 - 5 -
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(Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Trade payables 45,557 42,303 Electronically recorded obligations - operating 5,963 6,487 Short-term borrowings 49,040 37,040 Current portion of long-term borrowings 6,232 6,131 Accrued income taxes 5,248 3,947 Contract liabilities 42,911 46,963 Provision for bonuses 8,490 2,468 Provision for losses on construction contracts 3,729 3,838 Provision for demolition and removal 1,315 1,315 Other provisions 6,598 6,144 Others 22,236 16,293 Total current liabilities 197,324 172,933 Long-term liabilities Long-term borrowings 37,449 37,362 Provision for business restructuring 1,026 1,026 Provision for contract losses 3,376 3,248 Other provisions 395 275 Net defined benefit liabilities 4,083 4,095 Asset retirement obligations 1,059 1,061 Others 16,020 15,629 Total long-term liabilities 63,410 62,699 Total liabilities 260,734 235,633 Net assets Shareholders' equity Share capital 8,846 8,846 Capital surplus 2,793 2,793 Retained earnings 143,060 147,194 Treasury stock (4,566) (4,567) Total shareholders' equity 150,132 154,266 Accumulated other comprehensive income Net unrealized holding gains on securities 26,329 16,714 Unrealized gains on hedging derivatives 3,193 3,434 Revaluation reserve for land 21,793 21,580 Foreign currency translation adjustments 10,341 11,134 Remeasurements of defined benefit plans 17,283 16,743 Total accumulated other comprehensive income 78,941 69,607 Subscription rights to shares 30 29 Non-controlling interests 4,714 4,720 Total net assets 233,819 228,624 Total liabilities and net assets 494,554 464,257 - 6 -
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(2) Quarterly Consolidated Statements of Operations and Comprehensive Income Quarterly Consolidated Statements of Operations (Millions of yen) April 1, 2025 to April 1, 2026 to June 30, 2025 June 30, 2026 Net sales 81,151 91,712 Cost of sales 65,042 73,083 Gross profit 16,108 18,629 Selling, general and administrative expenses 7,212 8,450 Operating income 8,896 10,178 Non-operating income Interest income 64 72 Dividend income 84 71 Share of profit of entities accounted for using equity method 1,792 2,112 Others 127 52 Total non-operating income 2,069 2,309 Non-operating expenses Interest expenses 527 374 Foreign currency exchange losses 142 343 Others 146 111 Total non-operating expenses 816 829 Ordinary income 10,148 11,657 Extraordinary income Gain on disposal of non-current assets 16 65 Gain on sales of subsidiaries and affiliates' stocks 276 - Total extraordinary income 293 65 Extraordinary losses Loss on disposal of non-current assets 52 13 Total extraordinary losses 52 13 Profit before income taxes 10,389 11,710 Income taxes 3,166 3,476 Profit 7,222 8,233 Profit attributable to non-controlling interests 8 72 Profit attributable to owners of parent 7,214 8,160 - 7 -
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Quarterly Consolidated Statements of Comprehensive Income (Millions of yen) April 1, 2025 to April 1, 2026 to June 30, 2025 June 30, 2026 Profit 7,222 8,233 Other comprehensive income Net unrealized holding gains (losses) on securities 4,144 (9,616) Unrealized gains (losses) on hedging derivatives 229 (24) Foreign currency translation adjustments (377) 192 Remeasurements of defined benefit plans (355) (548) Share of other comprehensive income of affiliates accounted for using equity method (1,312) 868 Total 2,328 (9,128) Comprehensive income 9,550 (895) Comprehensive income attributable to Owners of parent 9,541 (961) Non-controlling interests 9 65 - 8 -
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(3) Quarterly Consolidated Statements of Cash Flows (Millions of yen) April 1, 2025 to April 1, 2026 to June 30, 2025 June 30, 2026 Cash flows from operating activities Profit before income taxes 10,389 11,710 Depreciation and amortization 1,959 2,023 Amortization of goodwill 262 284 Decrease of allowance for doubtful accounts (2) (3) Increase in net defined benefit liabilities 76 153 Decrease (increase) in net defined benefit assets (340) 148 Increase (decrease) in provision for losses on construction contracts (356) 122 Interest and dividend income (149) (143) Interest expenses 527 374 Share of profit of entities accounted for using equity method (1,792) (2,112) Foreign currency exchange losses (gains) (0) 423 Gain on sales of subsidiaries and affiliates' stocks (276) - Loss (gain) on disposal of non-current assets 36 (52) Decrease (increase) in trade receivables and contract assets 13,542 (692) Decrease (increase) in inventories (2,238) 521 Decrease in trade payables (2,408) (2,446) Increase in contract liabilities 9,495 3,997 Decrease (increase) in other assets (956) 735 Decrease in other liabilities (11,938) (13,697) Others, net 1,924 (1,036) Sub-total 17,751 311 Interest and dividend received 1,252 2,900 Interest paid (421) (361) Payments for loss on litigation - (36) Income taxes paid (4,043) (4,190) Net cash provided by (used in) operating activities 14,539 (1,375) - 9 -
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(Millions of yen) April 1, 2025 to April 1, 2026 to June 30, 2025 June 30, 2026 Cash flows from investing activities Net increase in time deposits (32) (49) Capital expenditure (1,628) (1,445) Proceeds from sales of non-current assets 2,972 403 Proceeds from sales of shares of subsidiaries and affiliates 4,197 - Subsidies received - 253 Others, net (51) (23) Net cash provided by (used in) investing activities 5,458 (860) Cash flows from financing activities Net decrease in short-term borrowings (570) (12,000) Repayments of long-term borrowings (253) (187) Repayments of lease obligations (477) (480) Cash dividends (1,797) (4,059) Dividends paid to non-controlling interests (41) (59) Others, net 9 (1) Net cash provided by (used in) financing activities (3,130) (16,788) Effect of exchange rate changes on cash and cash equivalents (277) 140 Net increase (decrease) in cash and cash equivalents 16,589 (18,883) Cash and cash equivalents at beginning of period 33,376 54,589 Increase due to changes in scope of consolidation 1 - Cash and cash equivalents at end of period 49,967 35,706 - 10 -
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(4) Notes to Quarterly Consolidated Financial Statements (Notes on Going Concern Assumption) Not applicable. (Notes in the Event of Significant Changes in Shareholders' Equity) Not applicable. (Notes on Application of Specific Accounting Treatment for Preparing Quarterly Consolidated Financial Statements) (Tax expense calculation) (Notes on Segment Information, etc.) I For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) 1. Information about sales and segment income or loss for each reportable segment (Millions of yen) Notes 1: "Others" is the segment which is not included in reportable segment and includes Engineering businesses, etc. 2: Segment income (loss) is consistent with operating income shown on 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. After applying tax effect accounting to profit before income taxes for the fiscal year, which includes the three months ended June 30, 2026, the Group makes a reasonable estimate of the effective tax rate and multiplies the profit before income taxes by that estimated effective tax rate. If the estimated effective 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. Outside customers 8,132 38,008 15,858 19,106 81,106 45 Consolidated Net Sales: New Business Development Marine Propulsion Systems Logistics Systems Peripheral Businesses Sub total Others 81,151 - 81,151 Inter segment 409 214 18 3,478 4,120 Total Adjustments Segment income (loss) 1,012 4,116 2,939 874 - 4,120 (4,120) - Total 8,542 38,223 15,876 22,585 8,943 (47) 8,896 - 8,896 85,227 45 85,272 (4,120) 81,151 - 11 -
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II For the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) 1. Information about sales and segment income or loss for each reportable segment (Millions of yen) Notes 1: "Others" is the segment which is not included in reportable segment and includes Engineering businesses, etc. 2: Segment income (loss) is consistent with operating income shown on 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. (Notes on Significant Subsequent Events) Not applicable. New Business Development Marine Propulsion Systems Logistics Systems Peripheral Businesses Sub total Others Total Adjustments Consolidated Outside customers 11,547 40,571 17,194 22,363 91,676 36 91,712 Net Sales: - 91,712 Inter segment 494 286 6 3,306 4,094 (355)Segment income (loss) 2,052 3,828 3,051 1,600 10,533 - 17,201 25,669 4,094 (4,094) - Total 12,041 40,857 10,178 - 10,178 95,770 36 95,807 (4,094) 91,712 - 12 -
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3. Supplementary Information Information about new orders and net sales (Percentages in FY2025 and FY2026 indicate composition ratio.) New Orders 1Q FY2025 1Q FY2026 FY2025 (from April 1, 2025 (from April 1, 2026 Increase/Decrease (from April 1, 2025 to June 30, 2025) to June 30, 2026) to March 31, 2026) Millions of yen % Millions of yen % Millions of yen % Millions of yen % Net Sales 1Q FY2025 1Q FY2026 FY2025 (from April 1, 2025 (from April 1, 2026 Increase/Decrease (from April 1, 2025 to June 30, 2025) to June 30, 2026) to March 31, 2026) Millions of yen % Millions of yen % Millions of yen % Millions of yen % Order Backlogs FY2025 1Q FY2026 1Q FY2025 (as of March 31, 2026) (as of June 30, 2026) (as of June 30, 2025) Millions of yen % Millions of yen % Millions of yen % Millions of yen % Change ratio New Business Development 9,153 10.3 10,003 9.5 849 9.3 43,285 13.7 Marine Propulsion Systems 41,335 46.5 67,141 63.9 25,805 62.4 131,051 41.5 74,780 23.7 (45.6) 66,558 21.1 Peripheral Businesses 17,302 19.5 16,442 15.7 (860) (5.0) Logistics Systems 20,946 23.6 11,395 10.9 (9,551) Others 60 0.1 48 0.0 (11) (19.9) 128 0.0 18.3 315,804 100.0 Change ratio New Business Development 8,132 10.0 11,547 12.6 3,414 Total 88,798 100.0 105,029 100.0 16,231 42.0 43,757 12.4 Marine Propulsion Systems 38,008 46.8 40,571 44.2 2,563 6.7 149,737 42.4 Logistics Systems 15,858 19.5 17,194 18.8 1,336 8.4 65,185 18.4 Peripheral Businesses 19,106 23.6 22,363 24.4 3,256 17.0 94,333 26.7 182 0.1 Total 81,151 100.0 91,712 100.0 10,561 13.0 353,196 Others 45 0.1 36 0.0 (8) (19.2) 100.0 Increase/Decrease Change ratio New Business Development 39,150 8.5 37,591 7.9 (1,558) (4.0) 41,081 8.4 Marine Propulsion Systems 142,295 30.8 168,947 35.5 26,651 18.7 163,806 33.4 Logistics Systems 97,726 21.1 91,970 19.4 (5,755) (5.9) 99,197 20.3 (3.5) 185,760 37.9Peripheral Businesses 183,461 39.6 176,996 37.2 (6,465) 0.0 Total 462,718 100.0 475,611 100.0 12,893 2.8 489,973 100.0 Others 84 0.0 105 0.0 20 24.4 128 - 13 -