Interim report
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August 4, 2026 Consolidated Financial Results for First Three Months of FY2026 Ended June 30, 2026 [IFRS] Company name: Mitsubishi Heavy Industries, Ltd. Listing: Tokyo Stock Exchange / Nagoya Stock Exchange / Fukuoka Stock Exchange / Sapporo Securities Exchange Securities code: 7011 URL: https://www.mhi.com Representative: Eisaku Ito, President and CEO Inquiries: Kentaro Ikeda, Senior General Manager of Financial Planning Division Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for institutional investors, financial analysts, and media) 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.) Revenue Profit from business activities Profit before income taxes Profit Millions of yen ％ Millions of yen ％ Millions of yen ％ Millions of yen ％ First Quarter of FY2026 1,194,203 15.5 159,645 65.1 176,426 99.0 138,143 93.4 First Quarter of FY2025 1,034,109 - 96,690 - 88,663 - 71,425 5.9 Profit attributable to owners of the parent Total comprehensive income Basic earnings per share Diluted earnings per share Millions of yen ％ Millions of yen ％ Yen Yen First Quarter of FY2026 134,680 97.4 131,916 86.6 40.08 40.07 First Quarter of FY2025 68,227 9.5 70,709 (49.6) 20.32 20.31 *1 “Profit from business activities” on the consolidated statement of profit or loss is presented as a measure that enables continuous comparison and assessment of the Group’s business performance. “Profit from business activities” is calculated by subtracting “cost of sales,” “selling, general and administrative expenses,” and “other expenses” from “revenue” and adding “share of profit (loss) of investments accounted for using the equity method” and “other income” to the resulting amount. “Other income” and “other expenses” consist of dividend income, gains or losses on sales of fixed assets, impairment losses on fixed assets, and others. *2 Beginning with the interim consolidated accounting period ended September 30, 2025, the business operations related to Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd), and its subsidiaries and affiliates, have been classified as discontinued operations. Accordingly, “revenue”, “profit from business activities”, and “profit before income taxes” are presented excluding discontinued operations, reflecting amounts for continuing operations only. Meanwhile, “profit”, “profit attributable to owners of the parent”, and “total comprehensive income” are presented as the total of continuing and discontinued operations. “Basic earnings per share” and “diluted earnings per share” are calculated based on “profit attributable to owners of the parent”. Furthermore, “revenue”, “profit from business activities”, and “profit before income taxes” for the three-month period ended June 30, 2025 have been restated in the same manner. Therefore, year-on-year percentage changes for these items are not presented. (2) Consolidated financial position Total assets Total equity Equity attributable to owners of the parent Ratio of equity attributable to owners of the parent to total assets As of Millions of yen Millions of yen Millions of yen ％ June 30, 2026 8,151,335 3,239,575 3,171,235 38.9 March 31, 2026 8,269,711 3,228,400 3,088,566 37.3 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.
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2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 - 12.00 - 13.00 25.00 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 14.00 - 15.00 29.00 * Revisions to the forecast of cash dividends most recently announced: None 3. Estimate of Consolidated Financial Results for FY 2026 ending March 31, 2027 (Percentages indicate year-on-year changes.) Revenue Profit from business activities Profit before income tax Profit attributable to owners of the parent Basic earnings per share From April 1, 2026 to March 31, 2027 Millions of yen ％ Millions of yen ％ Millions of yen ％ Millions of yen ％ Yen 5,400,000 8.6 540,000 24.9 530,000 11.7 380,000 14.4 113.09 * Revisions to the estimate of consolidated financial results most recently announced: None * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (3) The number of shares issued (Common Stock) (i) Total number of shares issued at the end of the period (including treasury shares) As of June 30, 2026 3,373,647,810 shares As of March 31, 2026 3,373,647,810 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 12,985,995 shares As of March 31, 2026 13,438,470 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 3,360,575,080 shares Three months ended June 30, 2025 3,358,271,260 shares * The Japanese-language originals of the attached consolidated quarterly financial statements are not subject to certified public accountants’ or an audit firm’s review: None * Proper use of earnings forecasts, and other special matters Note regarding forward looking statements: Forecasts regarding future performance outlined in these materials are based on judgments made in accordance with information available at the time they were prepared. As such, these projections include risk and uncertainty. Investors are recommended not to depend solely on these projections when making investment decisions. Actual results may vary significantly from these projections due to a number of factors, including, but not limited to, economic trends affecting the Company’s operating environment, fluctuations in the value of the Japanese yen to the U.S. dollar and other foreign currencies, and trends in Japan’s stock markets. The results projected here should not be construed in any way as a guarantee by the Company. How to obtain supplementary materials regarding the financial results: Supplementary materials regarding the financial results are available on the Company's website.
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- 1 - Table of Contents for Attachments 1. Condensed Quarterly Consolidated Financial Statements ……………………………………………………………… 2 (1) Condensed Consolidated Statement of Financial Position …………………………………………………………… 2 (2) Condensed Consolidated Statement of Profit or Loss ………………………………………………………………… 4 (3) Condensed Consolidated Statement of Comprehensive Income ……………………………………………………… 5 (4) Condensed Consolidated Statement of Changes in Equity …………………………………………………………… 6 (5) Condensed Consolidated Statement of Cash Flows …………………………………………………………………… 7 (6) Notes to Condensed Quarterly Consolidated Financial Statements …………………………………………………… 9 Notes to Going Concern Assumption ………………………………………………………………………………… 9 Operating Segment …………………………………………………………………………………………………… 9 Assets Held for Sale …………………………………………………………………………………………………… 11 Discontinued Operations ……………………………………………………………………………………………… 12 2. Outline of Financial Results ……………………………………………………………………………………………… 13
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- 2 - 1. Condensed Quarterly Consolidated Financial Statements (1) Condensed Consolidated Statement of Financial Position (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 1,334,874 1,684,084 Trade and other receivables 1,108,557 828,020 Other financial assets 56,836 65,930 Contract assets 1,019,196 1,070,336 Inventories 1,041,899 1,154,881 Assets held for sale 548,409 － Other current assets 330,652 467,142 Total current assets 5,440,426 5,270,395 Non-current assets Property, plant and equipment ("PPE") 794,467 798,607 Goodwill 106,394 107,159 Intangible assets 77,471 77,406 Right-of-use assets 62,849 65,310 Investments accounted for using the equity method 326,932 325,143 Other financial assets 489,341 531,248 Deferred tax assets 84,810 88,940 Other non-current assets 887,018 887,124 Total Non-current assets 2,829,285 2,880,940 Total assets 8,269,711 8,151,335
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- 3 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities and Equity Current liabilities Bonds, borrowings and other financial liabilities 255,067 296,771 Trade and other payables 1,000,863 913,467 Income taxes payable 86,557 50,070 Contract liabilities 2,161,881 2,483,221 Provisions 244,851 227,563 Liabilities directly associated with assets held for sale 281,931 － Other current liabilities 230,058 224,263 Total Current liabilities 4,261,212 4,195,358 Non-current liabilities Bonds, borrowings and other financial liabilities 621,173 557,051 Deferred tax liabilities 11,099 11,212 Retirement benefit liabilities 56,701 57,983 Provisions 54,905 53,958 Other non-current liabilities 36,218 36,196 Total non-current liabilities 780,098 716,401 Total liabilities 5,041,310 4,911,760 Equity Share capital 265,608 265,608 Capital surplus 48,274 47,101 Treasury shares (12,915) (12,423) Retained earnings 1,880,339 1,971,219 Other components of equity 907,258 899,729 Equity attributable to owners of the parent 3,088,566 3,171,235 Non-controlling interests 139,834 68,339 Total Equity 3,228,400 3,239,575 Total Liabilities and Equity 8,269,711 8,151,335
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- 4 - (2) Condensed Consolidated Statement of Profit or Loss (Millions of yen) FY2025 First 3 Months (From Apr. 1, 2025 to Jun. 30, 2025) FY2026 First 3 Months (From Apr. 1, 2026 to Jun. 30, 2026) Continuing operations Revenue 1,034,109 1,194,203 Cost of sales 806,938 914,506 Gross Profit 227,171 279,697 Selling, general and administrative expenses 144,460 152,799 Share of profit of investments accounted for using the equity method 3,430 9,090 Other income 15,460 28,728 Other expenses 4,910 5,070 Profit from business activities 96,690 159,645 Finance income 3,825 20,476 Finance costs 11,852 3,695 Profit before income taxes 88,663 176,426 Income taxes 21,746 44,863 Profit from continuing operations 66,917 131,563 Discontinued operations Profit (loss) from discontinued operations 4,508 6,580 Profit 71,425 138,143 Profit attributable to: Owners of the parent 68,227 134,680 Non-controlling interests 3,198 3,462 (yen) Earnings per share attributable to owners of the parent Basic earnings per share 20.32 40.08 Continuing operations 19.45 38.45 Discontinued operations 0.86 1.62 Diluted earnings per share 20.31 40.07 Continuing operations 19.45 38.44 Discontinued operations 0.86 1.62
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- 5 - (3) Condensed Consolidated Statement of Comprehensive Income (Millions of yen) FY2025 First 3 Months (From Apr. 1, 2025 to Jun. 30, 2025) FY2026 First 3 Months (From Apr. 1, 2026 to Jun. 30, 2026) Profit 71,425 138,143 Other comprehensive income Items that will not be reclassified to profit or loss Net gains from financial assets measured at FVTOCI 10,923 (774) Remeasurement of defined benefit plans 61 115 Share of other comprehensive income of entities accounted for using the equity method 132 688 Total 11,117 29 Items that may be reclassified to profit or loss Cash flow hedges (1,798) (1,118) Exchange differences on translating foreign operations (13,230) (7,134) Share of other comprehensive income of entities accounted for using the equity method 3,195 1,997 Total (11,833) (6,256) Total other comprehensive income (715) (6,226) Comprehensive income 70,709 131,916 Comprehensive income attributable to Owners of the parent 69,488 126,807 Non-controlling interests 1,221 5,109
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- 6 - (4) Condensed Consolidated Statement of Changes in Equity (Millions of yen) Equity attributable to owners of the parent Non-controlling interests Total Equity Share capital Capital surplus Treasury shares Retained earnings Other components of equity Total Balance as of Apr. 1, 2025 265,608 44,742 (16,452) 1,588,643 464,159 2,346,702 123,121 2,469,823 Profit 68,227 68,227 3,198 71,425 Other comprehensive income 1,261 1,261 (1,977) (715) Comprehensive income - - - 68,227 1,261 69,488 1,221 70,709 Transfer to retained earnings 2,564 (2,564) - - Purchase of treasury shares (1) (1) (1) Disposal of treasury shares 0 0 0 0 Dividends (40,292) (40,292) (2,386) (42,679) Others (256) 216 236 (10) 186 126 312 Total transactions with owners - (255) 215 (40,056) (10) (40,107) (2,260) (42,367) Balance as of Jun. 30, 2025 265,608 44,486 (16,236) 1,619,379 462,845 2,376,083 122,082 2,498,165 (Millions of yen) Equity attributable to owners of the parent Non-controlling interests Total Equity Share capital Capital surplus Treasury shares Retained earnings Other components of equity Total Balance as of Apr. 1, 2026 265,608 48,274 (12,915) 1,880,339 907,258 3,088,566 139,834 3,228,400 Profit 134,680 134,680 3,462 138,143 Other comprehensive income (7,873) (7,873) 1,646 (6,226) Comprehensive income - - - 134,680 (7,873) 126,807 5,109 131,916 Transfer to retained earnings (431) 431 - - Purchase of treasury shares (1) (1) (1) Disposal of treasury shares 9 13 23 23 Dividends (43,683) (43,683) (2,386) (46,070) Change in scope of consolidation (359) 313 (46) (74,822) (74,868) Others (822) 479 0 (87) (430) 605 174 Total transactions with owners - (1,172) 491 (43,370) (87) (44,138) (76,603) (120,741) Balance as of Jun. 30, 2026 265,608 47,101 (12,423) 1,971,219 899,729 3,171,235 68,339 3,239,575
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- 7 - (5) Condensed Consolidated Statement of Cash Flows (Millions of yen) FY2025 First 3 Months (From Apr. 1, 2025 to Jun. 30, 2025) FY2026 First 3 Months (From Apr. 1, 2026 to Jun. 30, 2026) Cash flows from operating activities Profit before income taxes 88,663 176,426 Profit (loss) from discontinued operations 6,300 (3,770) Depreciation, amortization and impairment loss 39,319 27,523 Finance income and costs (500) (20,835) Share of profit of investments accounted for using the equity method (3,426) (9,090) Loss (gain) on sale of PPE and intangible assets (5,398) (9,908) Loss on disposal of PPE and intangible assets 1,296 1,270 Decrease (increase) in trade receivables 123,822 299,498 Decrease (increase) in contract assets (47,134) (48,228) Decrease (increase) in inventories and advanced payments (118,991) (178,616) Increase (decrease) in trade payables (58,255) (82,106) Increase (decrease) in contract liabilities 126,515 307,187 Increase (decrease) in provisions (18,269) (18,361) Increase (decrease) in retirement benefit liabilities 1,584 1,441 Others (38,895) (104,642) Subtotal 96,631 337,787 Interest received 2,790 5,200 Dividends received 8,638 11,921 Interest paid (2,802) (1,882) Income taxes paid (15,595) (68,428) Net cash provided by operating activities 89,661 284,598
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- 8 - (Millions of yen) FY2025 First 3 Months (From Apr. 1, 2025 to Jun. 30, 2025) FY2026 First 3 Months (From Apr. 1, 2026 to Jun. 30, 2026) Cash flows from investing activities Payments into fixed-term deposits (2,592) (1,685) Proceeds from withdrawal of fixed-term deposits 4,844 954 Purchases of PPE, and intangible assets (42,108) (32,459) Proceeds from sales of PPE, and intangible assets 7,927 10,695 Purchases of investments (including investments accounted for using the equity method) (2,301) (34,670) Proceeds from sales and redemption of investments (including investments accounted for using the equity method) 5,010 8,714 Proceeds from sale of businesses (including subsidiaries) 4,574 146,166 Net decrease (increase) in short-term loans (132) 790 Disbursement of long-term loans (23) (6,983) Collection of long-term loans 242 9 Payments for derivative transactions (14,378) (7,424) Proceeds from derivative transactions 14,522 23,393 Others (895) (587) Net cash provided by (used in) investing activities (25,309) 106,913 Cash flows from financing activities Net increase (decrease) in short-term borrowings (999) 8,631 Repayment of long-term borrowings (472) (5,626) Dividends paid to owners of the parent (39,051) (42,625) Dividends paid to non-controlling interests (1,156) (664) Proceeds from factoring agreements 45,186 21,031 Repayment of liabilities under factoring agreements (44,217) (55,856) Repayment of lease liabilities (6,979) (7,317) Others (196) 272 Net cash provided by (used in) financing activities (47,886) (82,153) Effect of exchange rate changes on cash and cash equivalents (2,405) 18,501 Net increase (decrease) in cash and cash equivalents 14,060 327,859 Cash and cash equivalents at the beginning of the year 657,816 1,334,874 Net increase (decrease) in cash and cash equivalents included in assets held for sale - 21,350 Cash and cash equivalents at the end of the period 671,876 1,684,084
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- 9 - (6) Notes to Condensed Quarterly Consolidated Financial Statements Notes to Going Concern Assumption: None Operating Segment (i) Overview of reporting segments The reporting segments of the Group are components for which discrete financial information is available and whose operating results are regularly reviewed by MHI’s Board of Directors to make decisions about resource allocation and assess their performance. The Group manages its businesses by business domains and segments. Each business domain and segment engages in its business activities by formulating comprehensive strategies on products and services which are provided in both domestic and overseas markets. Accordingly, MHI determines its reporting segments by aggregating these business domains and segments based on similarities in customer and product characteristics As of April 1, 2026, the Group has reorganized its corporate structure. Consequently, the previous four reporting segments - "Energy Systems," "Plant & Infrastructure Systems," "Logistics, Thermal & Drive Systems," and "Aircraft, Defense & Space" - have been restructured into the following four segments: "Energy Systems," "Plant & Infrastructure Systems," "Industrial Solutions," and "Aircraft, Defense & Space." Main products and services in each reporting segment are as follows. Segment information for three-month period ended June 30, 2025 has been restated based on the revised reporting segment classification. Energy Systems Thermal power systems (GTCC* and Steam power), Nuclear power systems (Light- water reactors, Nuclear fuel cycle & Advanced solutions), Aero engines, Compressors, Marine machinery * Gas turbine combined cycle Plants & Infrastructure Systems Metal machinery, Commercial ships, Engineering (Transportation systems, Chemical plants), Environmental systems, Machinery systems (paper converting machinery, ITS*, Test equipment) * Intelligent Transport Systems Industrial Solutions Air-conditioning & refrigeration systems, Engines, Turbochargers, Automotive thermal systems, Data center & energy management Aircraft, Defense & Space Commercial aircraft, Defense aircraft, Missile systems, Naval ships, Maritime systems (torpedoes), Special vehicles, Space systems The Data center & energy management business, which was previously excluded from the reporting segments, has been included in the "Industrial Solutions" from the current fiscal year due to a review of the Group’s internal management structure. As described in the notes (discontinued operations), in the previous fiscal year, the Group classified the business operations related to Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.) and its subsidiaries and affiliates, which had been included in the "Logistics, Thermal & Drive Systems," as discontinued operations and has deducted them from the amounts for the three-month periods ended June 30, 2025 and 2026, respectively. The segment information for the three-month period ended June 30, 2025 is restated to reflect these changes.
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- 10 - (ii) Information about revenue, profit or loss and other items by reporting segment For FY2025 First 3 Months (From April 1, 2025 to June 30, 2025) (Millions of yen) Reporting segment Others *1 Total Corporate & Eliminations *2 Consolidated Energy Systems Plants & Infrastructure Systems Industrial Solutions Aircraft, Defense & Space Total Revenue Revenue from external customers 421,484 195,021 153,203 260,443 1,030,153 1,173 1,031,327 2,782 1,034,109 Inter-segment revenue and transfers 1,737 12,922 1,404 112 16,176 74 16,251 (16,251) - Total 423,222 207,943 154,608 260,556 1,046,330 1,247 1,047,578 (13,468) 1,034,109 Segment profit *3 56,402 18,550 4,040 28,812 107,805 7,549 115,355 (18,664) 96,690 Finance income 3,825 Finance costs 11,852 Profit before income taxes 88,663 For FY2026 First 3 Months (From April 1, 2026 to June 30, 2026) (Millions of yen) Reporting segment Others *1 Total Corporate & Eliminations *2 Consolidated Energy Systems Plants & Infrastructure Systems Industrial Solutions Aircraft, Defense & Space Total Revenue Revenue from external customers 535,148 192,028 175,976 285,973 1,189,126 1,670 1,190,796 3,407 1,194,203 Inter-segment revenue and transfers 1,242 7,981 1,926 96 11,247 129 11,376 (11,376) - Total 536,390 200,009 177,902 286,070 1,200,373 1,799 1,202,172 (7,969) 1,194,203 Segment profit *3 101,397 21,719 9,951 32,428 165,497 12,827 178,324 (18,679) 159,645 Finance income 20,476 Finance costs 3,695 Profit before income taxes 176,426 *1 “Others” includes asset businesses and other businesses, which are not included in the reporting segments. *2 “Corporate & Eliminations” includes revenues and expenses which are not included in any of the reporting segments. Specifically, corporate research and development expenses and dividends on shares concerning corporate overall businesses, neither of which are linked to any specific segment. *3 Segment profit represents profit from business activities.
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- 11 - Assets Held for Sale Assets held for sale and liabilities directly associated with assets held for sale are comprised of the following. (i) Assets held for sale (Millions of yen) As of March 31, 2026 As of June 30, 2026 Cash and cash equivalents 21,350 - Trade and other receivables 113,043 - Contract assets 1,261 - Inventories 109,256 - Property, plant and equipment ("PPE") 196,356 - Goodwill 27,186 - Intangible assets 16,673 - Right-of-use assets 28,567 - Investments accounted for using the equity method 1,439 - Other financial assets 10,767 - Deferred tax assets 7,998 - Other assets 14,509 - Total 548,409 - (ii) Liabilities directly associated with assets held for sale (Millions of yen) As of March 31, 2026 As of June 30, 2026 Bonds, borrowings and other financial liabilities 129,843 - Trade and other payables 70,500 - Income taxes payable 2,011 - Contract liabilities 11,759 - Retirement benefit liabilities 12,655 - Provisions 10,010 - Deferred tax liabilities 1,831 - Other current liabilities 43,318 - Total 281,931 - As described in the notes (discontinued operations), assets held for sale and associated liabilities in the previous fiscal year were mainly related to the business of Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.) and its subsidiaries and affiliates. The disposal group classified as held for sale in the previous fiscal year is measured at fair value less costs to sell because the fair value less costs to sell is lower than the carrying amount. The fair value is measured based on the share price as of March 31, 2026, and is categorized within Level 1 of the fair value hierarchy.
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- 12 - Discontinued Operations The Company, at the meeting of its board of directors held on September 30, 2025, resolved to enter into the basic transaction agreement concerning the following matters with LVJ Holdings 2 LLC (the “Tender Offeror”), which is wholly owned by JIP Fund VI, for which all the issued shares are held by Japan Industrial Partners, Inc. and the agreement was executed on the same day: (a) A non-participation in a tender offer by the Tender Offeror for the Mitsubishi Logisnext (currently Logisnext) shares and stock options. (b) A share consolidation to be conducted by Mitsubishi Logisnext in order to make the Tender Offeror and the Company the only shareholders of Mitsubishi Logisnext if the Tender Offeror is unable to acquire all the Mitsubishi Logisnext shares and stock options through the Tender Offer (c) Subject to the effectiveness of the share consolidation, a provision of funds to Mitsubishi Logisnext by the Tender Offeror and a reduction in Mitsubishi Logisnext’s capital stock, capital reserves and retained earnings reserves based on Article 447, Paragraph 1 and Article 448, Paragraph 1 of the Companies Act for the purpose of securing the funds and distributable amount for Mitsubishi Logisnext to acquire the Mitsubishi Logisnext shares held by the Company (the “Non-Tendered Shares”) (d) A share repurchase by Mitsubishi Logisnext of the Non-Tendered Shares, and a series of transactions for the purposes of taking Mitsubishi Logisnext private through (a) to (d) (e) The Company to underwrite Class B Preferred Shares and Class D Type Shares issued by the Tender Offeror following the effectiveness of the share repurchase Through the transaction, Mitsubishi Logisnext shall cease to be a consolidated subsidiary of the Company. Therefore, the businesses related to Mitsubishi Logisnext and its subsidiaries and affiliates are classified as discontinued operations from the previous fiscal year. This transaction was completed on May 1, 2026. (i) Profit or loss from discontinued operations (Millions of yen) FY2025 First 3 Months (From Apr. 1, 2025 to Jun. 30, 2025) FY2026 First 3 Months (From Apr. 1, 2026 to Jun. 30, 2026) Revenue 160,299 49,904 Expenses 153,999 53,675 Profit (loss) before income taxes from discontinued operations 6,300 (3,770) Income taxes 1,791 (10,350) Profit (loss) from discontinued operations 4,508 6,580 Expenses for the three-month period ended June 30, 2026 include a loss of ¥32,907 million on the transfer of shares, as well as a gain of ¥24,535 million resulting from the realization of exchange differences on translating foreign operations. In addition, an income tax benefit of ¥11,863 million has been recognized in connection with the share transfer. (ii) Cash flows from discontinued operations (Millions of yen) FY2025 First 3 Months (From Apr. 1, 2025 to Jun. 30, 2025) FY2026 First 3 Months (From Apr. 1, 2026 to Jun. 30, 2026) Cash flows from operating activities 14,532 21,457 Cash flows from investing activities (9,286) 103,679 Cash flows from financing activities (2,820) (622) Total 2,424 124,515
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- 13 - Cash flows from investing activities during the three-month period ended June 30, 2026 include proceeds of ¥74,468 million from the transfer of Mitsubishi Logisnext shares, as well as funds raised by the subsidiary subject to the transfer through borrowings from the transferee and a third-party allotment of shares. A substantial portion of such financing was used to repay borrowings owed to the Company and to settle the consideration for the acquisition of treasury shares. As a result, ¥138,221 million was recognized as proceeds from sale of businesses (including subsidiaries) in connection with the transaction. The assets and liabilities at the time of the share transfer of the subsidiary over which control was lost were as follows: cash and cash equivalents of ¥116,446 million, other current assets of ¥231,374 million, non-current assets of ¥300,741 million, current liabilities of ¥319,541 million, and non-current liabilities of ¥98,416 million. 2. Outline of Financial Results An outline of the financial results for the first 3 Months of FY2026 (from April 1, 2026 to June 30, 2026) is included in the "Q1 FY2026 Financial Results Presentation Materials" released today, August 4, 2026. These materials are available on TDnet and the Company's website.