Interim report
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Listed company name: Mitsui & Co., Ltd. Registered stock exchange: Tokyo Stock Exchange / Nagoya Stock Exchange / Sapporo Securities Exchange / Fukuoka Stock Exchange Securities code: 8031 Website: https://www.mitsui.com/jp/en/ Representative: Kenichi Hori, President and Chief Executive Officer Inquiries: Akinobu Hashimoto, Investor Relations Division Telephone: +81-3-3285-1111 Scheduled dividend payment date: - Preparation of presentation material on financial results: Yes Holding of financial results briefing: Yes (for analysts and institutional investors) Revenue Profit before income taxes Profit for the period Profit for the period attributable to owners of the parent Comprehensive income for the period Mn JPY % Mn JPY % Mn JPY % Mn JPY % Mn JPY % FY March 2027 Q1 4,347,565 31.7 362,156 54.6 303,080 53.3 294,052 53.4 389,643 98.7 FY March 2026 Q1 3,299,943 (14.1) 234,203 (32.6) 197,761 (30.0) 191,647 (30.6) 196,077 (67.4) Earnings per share attributable to owners of the parent, basic Earnings per share attributable to owners of the parent, diluted JPY JPY FY March 2027 Q1 103.73 103.65 FY March 2026 Q1 66.68 66.63 Total assets Total equity Total equity attributable to owners of the parent Equity attributable to owners of the parent ratio Mn JPY Mn JPY Mn JPY % end-FY March 2027 Q1 20,730,973 9,239,277 8,980,814 43.3 end-FY March 2026 20,821,528 9,017,921 8,767,744 42.1 August 4, 2026 Consolidated Financial Results for the Three-Month Period Ended June 30, 2026 (IFRS) 1. Consolidated Financial Results (1) Consolidated Operating Results Information for the Three-Month Period Ended June 30, 2026 (from April 1, 2026 to June 30, 2026) Note: Percentage figures for revenue, profit before income taxes, profit for the period, profit for the period attributable to owners of the parent, and comprehensive income for the period represent changes from the previous year. (2) Consolidated Financial Position Information
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Annual dividends per share end-Q1 end-Q2 end-Q3 end-Q4 Total JPY JPY JPY JPY JPY FY March 2026 － 55 － 60 115 FY March 2027 － FY March 2027 (forecast) 70 － 70 140 Profit attributable to owners of the parent Earnings per share attributable to owners of the parent, basic FY March 2027 Mn JPY 920,000 % 10.3 JPY 324.54 (1) Significant Changes in the Scope of Consolidation during the Period: None (i) Changes in accounting policies required by IFRS Accounting Standards Yes (ii) Other changes None (iii) Changes in accounting estimates None (i) Number of shares (including treasury stock) end-FY March 2027 Q1 2,864,666,576 end-FY March 2026 2,864,666,576 (ii) Number of treasury stock end-FY March 2027 Q1 29,817,498 end-FY March 2026 30,478,349 (iii) Average number of shares FY March 2027 Q1 2,834,680,446 FY March 2026 Q1 2,874,263,473 2. Dividend Information Note: Change from the latest released dividend forecast: None 3. Forecast of Consolidated Operating Results for the Year Ending March 31, 2027 (from April 1, 2026 to March 31, 2027) Note: Change from the latest released earnings forecast: None 4. Others (2) Changes in Accounting Policies and Accounting Estimates: Note: For further details please refer to page 15 “4. Condensed Consolidated Financial Statements (7) Changes in Accounting Policies." (3) Number of Shares Outstanding (Common Stock) Review of the Japanese-language originals of the attached condensed consolidated financial statements by certified public accountants or an audit firm: None A cautionary note on forward-looking statements: This report contains forward-looking statements including those concerning future performance of Mitsui & Co., Ltd. (“Mitsui”), and those statements are based on Mitsui’s current assumptions, expectations and beliefs in light of the information currently possessed by it. Various factors may cause Mitsui’s actual results to be materially different from any future performance expressed or implied by these forward-looking statements. Therefore, these statements do not constitute a guarantee by Mitsui that such future performance will be realized. For cautionary notes with respect to forward-looking statements, please refer to the “Notice” section on page 9. Supplementary materials and IR meetings on financial results: Supplementary materials on financial results can be found on our web site. We will hold an IR meeting on financial results for analysts and institutional investors on August 4, 2026. Contents of the meeting (English and Japanese) will be posted on our web site immediately after the meeting.
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1. Qualitative Information (1) Operating Environment……………………………………………………………………...…………............................. 2 (2) Results of Operations……………………………………………………………………………………........................... 3 (3) Financial Condition and Cash Flows…………………………………………………………………….......................... 5 2. Management policies (1) Forecast for the Year Ending March 31, 2027........................................................................................................ 8 (2) Profit Distribution Policy.......................................................................................................................................... 8 3. Other Information………………………………………………………………………………………….............................. 9 4. Condensed Consolidated Financial Statements (1) Condensed Consolidated Statements of Financial Position.................................................................................... 10 (2) Condensed Consolidated Statements of Income and Comprehensive Income...................................................... 12 (3) Condensed Consolidated Statements of Changes in Equity................................................................................... 13 (4) Condensed Consolidated Statements of Cash Flows............................................................................................. 14 (5) Assumption for Going Concern............................................................................................................................... 15 (6) Basis of Preparation of Condensed Consolidated Financial Statements................................................................ 15 (7) Changes in Accounting Policies............................................................................…............................................... 15 (8) Segment Information.................................................................................................…........................................... 16 (9) Impact of the Russia-Ukraine Situation on the Russian LNG Business.................................................................. 17 Table of Contents - 1 -
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1. Qualitative Information There has been no review made by certified public accountants or an audit firm regarding the Japanese-language original version of the condensed consolidated quarterly financial statements. As used in this report, “Mitsui,” “Mitsui & Co.” and the “Company” are used to refer to Mitsui & Co., Ltd. (Mitsui Bussan Kabushiki Kaisha). The “Group” and the “Mitsui & Co. Group” are used to indicate Mitsui & Co., Ltd. and its consolidated subsidiaries, unless otherwise indicated. (1) Operating Environment In the three-month period ended June 30, 2026, the global economy saw a gradual pickup overall, supported by a continued expansion of capital investment related to AI, despite concerns over the impact of transit restrictions in the Strait of Hormuz, as major countries responded through measures such as the release of petroleum reserves. The US economy continued its gradual recovery. Although higher gasoline prices had some adverse impact, AI-related investment was robust, and consumer spending remained resilient, supported by a generally favorable employment environment. The European economy showed weaker signs of an improvement, as rising energy prices pushed up inflation, weighing on consumption. In the Chinese economy, exports remained solid, but with the real estate market continuing to be sluggish, domestic demand, including consumption and investment weakened further, and the slowdown became more pronounced. The Japanese economy maintained a gradual recovery trend, as consumer spending picked up on the back of higher real wages and rising stock prices, and capital investment remained resilient, despite rising prices and supply constraints for raw materials for which Japan is highly dependent on the Middle East. The outlook for the global economy is expected to see gradual expansion, led by AI-related investment. However, close attention is required regarding the impact on the economy from geopolitical risks, including the unstable situation in the Middle East, as well as developments in financial and capital markets, such as rising long-term interest rates. - 2 -
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(Bn JPY) Current period Previous period Change Description Revenue 4,347.6 3,299.9 +1,047.7 ・Increase: EN, CH, MM* Gross profit 413.7 301.4 +112.3 ・Increase: EN, CH, ICD* Selling, general and administrative expenses (235.2) (202.2) (33.0) See following table for breakdown of expenses Other income (expenses) Gain (loss) on securities and other investments-net 87.0 3.7 +83.3 ・Increase: Valuation gain on remaining equity in US real estate ownership and operations business (CIM Group) Impairment reversal (loss) of fixed assets-net (6.0) (1.0) (5.0) Gain (loss) on disposal or sales of fixed assets-net 0.2 0.4 (0.2) Other income (expense)-net (30.8) 5.5 (36.3) ・Decrease: Valuation loss on US real estate ownership and operations business (CIM Group) call options Finance income (costs) Interest income 21.8 20.5 +1.3 Dividend income 23.8 30.5 (6.7) Interest expense (51.5) (45.5) (6.0) Share of profit (loss) of investments accounted for using the equity method 139.2 120.9 +18.3 ・Increase: MM* Income taxes (59.1) (36.4) (22.7) Profit for the period 303.1 197.8 +105.3 Profit for the period (non-controlling interests) (9.0) (6.1) (2.9) Profit for the period (owners of the parent) 294.1 191.6 +102.5 (Bn JPY) Current period Previous period Change* Personnel (131.7) (113.1) (18.6) Welfare (4.9) (4.4) (0.5) Travel expenses (9.1) (8.4) (0.7) Communication (19.9) (18.0) (1.9) Rent (4.7) (4.7) 0.0 Service fee (8.8) (5.4) (3.4) Depreciation (17.0) (14.2) (2.8) Fees and taxes (4.9) (3.8) (1.1) Loss allowance 0.1 1.3 (1.2) Others (34.3) (31.5) (2.8) Total (235.2) (202.2) (33.0) (2) Results of Operations 1) Analysis of Consolidated Income Statements Note: May not match the total of items due to rounding off. The same shall apply hereafter. * EN: Energy segment, CH: Chemicals segment, MM: Mineral & Metal Resources segment, ICD: Innovation & Corporate Development segment. The table below provides a breakdown of selling, general and administrative expenses. * Negative amounts in the change column displayed in parentheses represent an increase in expenses. - 3 -
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(Bn JPY) Current period Previous period Change Description Mineral & Metal Resources 61.2 51.5 +9.7 ・Increase: Copper, iron ore, and metallurgical coal prices, iron ore volumes ・Decrease: Metallurgical coal costs Iron & Steel Products 5.3 6.5 (1.2) Energy*1 34.4 20.2 +14.2 ・Increase: FVTPL from IPO of energy business outside Japan, US gas Mobility, Digital & Infrastructure*1 73.0 49.4 +23.6 ・Increase: Automotives, gas infrastructure Chemicals 26.6 30.9 (4.3) ・Decrease: Absence of valuation gains and one- time factors recorded in previous period ・Increase: Trading, methanol business Wellness Ecosystem*2 18.4 14.8 +3.6 ・Increase: Food (protein, other factors) ・Decrease: Absence of gain from asset sales recorded in previous period Innovation & Corporate Development 65.2 10.3 +54.9 ・Increase: Gain on asset recycling of US real estate ownership and operations business (CIM Group), FVTPL from IPO of quantum computing business All Other and Adjustments and Eliminations 10.0 8.0 +2.0 ・Expenses, interest, taxes, etc., not allocated to segments Consolidated total 294.1 191.6 +102.5 2) Operating Results by Operating Segment Profit (profit for the period attributable to owners of the parent) by operating segment is as follows. *1 As of April 1, 2026, the power generation business previously included in the Energy segment was transferred to the Machinery & Infrastructure segment, which was subsequently renamed the Mobility, Digital & Infrastructure segment. In line with this change, results for the previous period have been restated. *2 As of April 1, 2026, the Lifestyle segment was renamed the Wellness Ecosystem segment. - 4 -
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(Bn JPY) June 30, 2026 March 31, 2026 Change Description Assets 20,731.0 20,821.5 (90.5) Current assets 6,661.9 7,056.0 (394.1) ・Decrease: Derivative assets (ICD*3, EN*3) ・Increase: Trade receivables (EN, CH*3) Non-current assets 14,069.1 13,765.5 +303.6 ・Increase: Other investments (CIM Group reclassification), property, plant and equipment (iron ore operations in Australia) Liabilities 11,491.7 11,803.6 (311.9) Current liabilities 4,593.6 5,010.6 (417.0) ・Decrease: Derivative liabilities (EN, ICD) Non-current liabilities 6,898.1 6,793.0 +105.1 ・Increase: Borrowings Equity 9,239.3 9,017.9 +221.4 Equity attributable to owners of the parent 8,980.8 8,767.7 +213.1 ・Increase: Retained earnings, foreign currency translation adjustments (USD, AUD) Non-controlling interests 258.5 250.2 +8.3 Net interest-bearing debt*1 4,416.7 4,139.0 +277.7 ・Increase: Increase in short-term debt, decrease in cash and cash equivalents Net debt-to-equity ratio (times)*2 0.49 0.47 +0.02 (3) Financial Condition and Cash Flows 1) Financial Condition *1 Net interest-bearing debt is interest-bearing debt (long-term and short-term debt, excluding lease liabilities) minus cash and cash equivalents, and time deposits (with maturities of more than three months and within one year). *2 Net debt-to-equity ratio is net interest-bearing debt divided by shareholder equity (equity attributable to owners of the parent). *3 ICD: Innovation & Corporate Development segment, EN: Energy segment, CH: Chemicals segment. - 5 -
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(Bn JPY) Current period Previous period Description of current period Cash flows from operating activities 42.3 262.6 ・Inflows: Core Operating Cash Flow* (key factors behind changes listed in table below) ・Outflows: Increase in working capital (mainly due to increase in trade receivables) Cash flows from investing activities (88.7) (169.7) Change in time deposits (1.0) (15.6) Cash inflow 59.2 54.0 ・Inflows: Space business (Firefly Aerospace) Cash outflow (146.9) (208.1) ・Outflows: Iron ore operations in Australia, oil and gas projects, LNG business (Mitsui E&P Mozambique, other businesses) [Free cash flow] (46.4) 92.9 Cash flows from financing activities (61.5) (58.3) ・Outflows: Payment of dividends ・Inflows: Increase in short-term debt Effect of exchange rate changes on cash and cash equivalents 9.8 (6.0) Change in cash and cash equivalents (98.1) 28.5 ・Balance as of June 30, 2026: 884.6 bn yen ・Balance as of March 31, 2026: 982.7 bn yen (Bn JPY) Current period Previous period Change Description Core Operating Cash Flow*1 280.9 216.3 +64.6 ・Increase: EN*2 (FVTPL from IPO of energy business outside Japan, US gas) ・Increase: MDI*2 (dividends from equity method investees and general companies) ・Increase: ICD*2 (FVTPL from IPO of quantum computing business) 2) Cash Flows * Excluding outflows from repayment of lease liabilities. *1 Core Operating Cash Flow (280.9 bn yen) is cash flow from operating activities (42.3 bn yen) excluding changes in working capital (-271.5 bn yen) and takes into account repayments of lease liabilities (-32.9 bn yen). *2 EN: Energy segment, MDI: Mobility, Digital & Infrastructure segment, ICD: Innovation & Corporate Development segment. - 6 -
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(Bn JPY) Current period Previous period Change Mineral & Metal Resources 69.0 71.9 (2.9) Iron & Steel Products 4.4 6.3 (1.9) Energy*1 80.1 48.4 +31.7 Mobility, Digital & Infrastructure*1 46.5 33.4 +13.1 Chemicals 40.9 32.7 +8.2 Wellness Ecosystem*2 7.6 (1.0) +8.6 Innovation & Corporate Development 24.7 12.1 +12.6 All Other and Adjustments and Eliminations 7.7 12.5 (4.8) Consolidated total 280.9 216.3 +64.6 (Bn JPY) Current period Previous period Change Mineral & Metal Resources 21.9 18.0 +3.9 Iron & Steel Products 1.7 0.6 +1.1 Energy*1 26.0 21.5 +4.5 Mobility, Digital & Infrastructure*1 9.9 8.0 +1.9 Chemicals 9.9 8.3 +1.6 Wellness Ecosystem*2 10.1 9.8 +0.3 Innovation & Corporate Development 4.3 4.1 +0.2 All Other and Adjustments and Eliminations 5.3 4.4 +0.9 Consolidated total 89.1 74.7 +14.4 The following table shows Core Operating Cash Flow by operating segment. *1 As of April 1, 2026, the power generation business previously included in the Energy segment was transferred to the Machinery & Infrastructure segment, which was subsequently renamed the Mobility, Digital & Infrastructure segment. In line with this change, results for the previous period have been restated. *2 As of April 1, 2026, the Lifestyle segment was renamed the Wellness Ecosystem segment. The following table shows depreciation and amortization by operating segment. *1 As of April 1, 2026, the power generation business previously included in the Energy segment were transferred to the Machinery & Infrastructure segment, which was subsequently renamed the Mobility, Digital & Infrastructure segment. In line with this change, results for the previous period have been restated. *2 As of April 1, 2026, the Lifestyle segment was renamed the Wellness Ecosystem segment. - 7 -
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2. Management Policies (1) Forecast for the Year Ending March 31, 2027 The forecasts for the year ending March 31, 2027 we announced on May 1, 2026 in Consolidated Financial Results for the Year Ended March 31, 2026, were 920 billion yen for profit for the year attributable to owners of the parent and 1,050 billion yen for Core Operating Cash Flow. No revisions have been made to these forecasts. (2) Profit Distribution Policy Our basic policy on profit distribution is as follows: ・In order to sustainably enhance corporate value and maximize shareholder value, we allocate capital to investments and shareholder returns, taking into account factors such as capital efficiency and stability from a financing perspective. ・Based on the level of highly-recurring cash generation capability, we plan to return a certain amount directly to shareholders through dividends, and continuously increase the dividend in line with the expansion of our cash generation capability. ・The amount and timing of share repurchases, which are conducted to improve capital efficiency amongst other things, will be decided in a flexible manner. Today we announced a new repurchase program, targeting up to 200 billion yen of shares to be repurchased between August 5, 2026 and January 29, 2027. In addition, we have decided we will cancel all shares repurchased during this period and plan to cancel them on February 5, 2027. For details, please refer to the releases on our website “Share Repurchase and Cancellation of Treasury Stock” dated August 4, 2026. Taking into consideration Core Operating Cash Flow and profit for the year attributable to owners of the parent in the consolidated operating earnings forecast, as well as the stability and continuity of dividend amount, the full-year dividend for the year ending March 31, 2027 is planned to be 140 yen per share (an increase of 25 yen from the previous year, with an interim dividend of 70 yen, and a year-end dividend of 70 yen). Furthermore, during the Medium-term Management Plan 2029 (MTMP2029, from the year ending March 31, 2027 to the year ending March 31, 2029), we will continue the progressive dividend that will have the dividend level maintained or increased. Under the MTMP2029 announced May 1, 2026, we had set a shareholder returns policy (dividends and share repurchases) to a level of around 50% of Core Operating Cash Flow over the three-year cumulative period for MTMP2029. Today, we updated this policy to allocate over 50% of Core Operating Cash Flow over the three-year cumulative period for MTMP2029 to shareholder returns (dividends and share repurchases). - 8 -
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3. Other Information Notice: This flash report contains forward-looking statements about Mitsui and its consolidated subsidiaries. These forward-looking statements are based on Mitsui’s current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui’s actual consolidated financial position, consolidated operating results or consolidated cash flows to be materially different from any future consolidated financial position, consolidated operating results or consolidated cash flows expressed or implied by these forward-looking statements. These important risks, uncertainties and other factors include, among others, (1) business investment risk, (2) geopolitical risk, (3) country risk, (4) risk regarding climate change, (5) commodity price risk, (6) foreign exchange risk, (7) stock price risk of listed stock Mitsui and its subsidiaries hold, (8) credit risk, (9) risk regarding financing, (10) operational risk, (11) risks regarding employee’s compliance with laws, regulations, and internal policies, (12) risks regarding information systems and information security, (13) risk regarding human capital constraints, (14) risk regarding human rights, and (15) risks relating to natural disasters, terrorism, violent groups, and infectious disease. For further information on the above, please refer to Mitsui’s Annual Securities Report. Forward-looking statements may be included in Mitsui’s Annual Securities Report and Semi-annual Securities Reports or in its other disclosure documents, press releases or website disclosures. Mitsui undertakes no obligation to publicly update or revise any forward-looking statements. - 9 -
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(Mn JPY) Assets June 30, 2026 March 31, 2026 Current assets: Cash and cash equivalents 884,596 982,722 Trade and other receivables 2,517,421 2,344,476 Other financial assets 1,502,858 1,969,812 Inventories 1,045,832 1,086,400 Advance payments to suppliers 493,166 476,972 Income tax receivables 28,224 33,310 Other current assets 189,760 162,351 Total current assets 6,661,857 7,056,043 Non-current assets: Investments accounted for using the equity method 5,616,755 5,560,536 Other investments 2,973,190 2,820,847 Trade and other receivables 391,286 363,579 Other financial assets 282,399 275,905 Property, plant and equipment 3,786,626 3,721,772 Investment property 192,182 185,351 Intangible assets 556,476 578,306 Deferred tax assets 111,633 102,695 Other non-current assets 158,569 156,494 Total non-current assets 14,069,116 13,765,485 Total assets 20,730,973 20,821,528 4. Condensed Consolidated Financial Statements (1) Condensed Consolidated Statements of Financial Position - 10 -
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(Mn JPY) Liabilities and Equity June 30, 2026 March 31, 2026 Current liabilities: Short-term debt 286,609 166,249 Current portion of long-term debt 515,058 509,475 Trade and other payables 1,896,463 1,878,139 Other financial liabilities 1,222,116 1,806,687 Income tax payables 61,388 66,468 Advances from customers 466,329 458,349 Provisions 73,107 58,284 Other current liabilities 72,512 66,951 Total current liabilities 4,593,582 5,010,602 Non-current liabilities: Long-term debt, less current portion 5,079,288 5,032,042 Other financial liabilities 444,310 416,380 Retirement benefit liabilities 46,915 45,897 Provisions 342,252 331,937 Deferred tax liabilities 925,136 908,021 Other non-current liabilities 60,213 58,728 Total non-current liabilities 6,898,114 6,793,005 Total liabilities 11,491,696 11,803,607 Equity: Common stock 344,163 344,163 Capital surplus 421,245 418,459 Retained earnings 6,268,839 6,140,218 Other components of equity 2,041,690 1,962,653 Treasury stock (95,123) (97,749) Total equity attributable to owners of the parent 8,980,814 8,767,744 Non-controlling interests 258,463 250,177 Total equity 9,239,277 9,017,921 Total liabilities and equity 20,730,973 20,821,528 - 11 -
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(Mn JPY) Three-month period ended June 30, 2026 Three-month period ended June 30, 2025 Revenue 4,347,565 3,299,943 Cost (3,933,855) (2,998,580) Gross profit 413,710 301,363 Other income (expenses): Selling, general and administrative expenses (235,183) (202,222) Gain (loss) on securities and other investments－net 86,996 3,674 Impairment reversal (loss) of fixed assets－net (6,025) (956) Gain (loss) on disposal or sales of fixed assets－net 208 370 Other income (expense) －net (30,781) 5,531 Total other income (expenses) (184,785) (193,603) Finance income (costs): Interest income 21,793 20,450 Dividend income 23,783 30,535 Interest expense (51,500) (45,455) Total finance income (costs) (5,924) 5,530 Share of profit (loss) of investments accounted for using the equity method 139,155 120,913 Profit before income taxes 362,156 234,203 Income taxes (59,076) (36,442) Profit for the period 303,080 197,761 Profit for the period attributable to: Owners of the parent 294,052 191,647 Non-controlling interests 9,028 6,114 (2) Condensed Consolidated Statements of Income and Comprehensive Income Condensed Consolidated Statements of Income (Mn JPY) Three-month period ended June 30, 2026 Three-month period ended June 30, 2025 Profit for the Period 303,080 197,761 Other Comprehensive Income: Items that will not be reclassified to profit or loss: Financial assets measured at FVTOCI (30,568) 92,513 Remeasurements of defined benefit pension plans (969) (1,410) Share of other comprehensive income of investments accounted for using the equity method 3,975 575 Income tax relating to items not reclassified 11,126 (28,105) Items that may be reclassified subsequently to profit or loss: Foreign currency translation adjustments 18,026 (4,937) Cash flow hedges 25,298 162 Share of other comprehensive income of investments accounted for using the equity method 82,517 (60,411) Income tax relating to items that may be reclassified (22,842) (71) Total other comprehensive income 86,563 (1,684) Comprehensive Income for the Period 389,643 196,077 Comprehensive Income for the Period Attributable to: Owners of the parent 377,757 191,443 Non-controlling interests 11,886 4,634 Condensed Consolidated Statements of Comprehensive Income - 12 -
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(Mn JPY) Attributable to owners of the parent Non- controlling interests Total equityCommon stock Capital surplus Retained earnings Other components of equity Treasury stock Total Balance as at April 1, 2025 343,442 407,732 5,801,064 1,073,611 (79,234) 7,546,615 216,017 7,762,632 Profit for the period 191,647 191,647 6,114 197,761 Other comprehensive income for the period (204) (204) (1,480) (1,684) Comprehensive income for the period 191,647 (204) 191,443 4,634 196,077 Transaction with owners: Dividends paid to the owners of the parent (143,691) (143,691) (143,691) Dividends paid to non-controlling interest shareholders (6,599) (6,599) Acquisition of treasury stock (2) (2) (2) Sales of treasury stock (238) (274) 512 0 0 Cancellation of treasury stock - - - - Compensation costs related to share- based payment 721 1,013 1,734 1,734 Equity transactions with non-controlling interest shareholders (1,079) 639 (440) (5,331) (5,771) Transfer to retained earnings (28,606) 28,606 - - Balance as at June 30, 2025 344,163 407,429 5,820,140 1,102,652 (78,724) 7,595,660 208,721 7,804,381 (Mn JPY) Attributable to owners of the parent Non- controlling interests Total equityCommon stock Capital surplus Retained earnings Other components of equity Treasury stock Total Balance as at April 1, 2026 344,163 418,459 6,140,218 1,962,653 (97,749) 8,767,744 250,177 9,017,921 Profit for the period 294,052 294,052 9,028 303,080 Other comprehensive income for the period 83,705 83,705 2,858 86,563 Comprehensive income for the period 294,052 83,705 377,757 11,886 389,643 Transaction with owners: Dividends paid to the owners of the parent (170,055) (170,055) (170,055) Dividends paid to non-controlling interest shareholders (5,649) (5,649) Acquisition of treasury stock (8) (8) (8) Sales of treasury stock (170) - 171 1 1 Cancellation of treasury stock - - - - Compensation costs related to share- based payment - 2,075 2,463 4,538 4,538 Equity transactions with non-controlling interest shareholders 881 (44) 837 2,049 2,886 Transfer to retained earnings 4,624 (4,624) - - Balance as at June 30, 2026 344,163 421,245 6,268,839 2,041,690 (95,123) 8,980,814 258,463 9,239,277 (3) Condensed Consolidated Statements of Changes in Equity - 13 -
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(Mn JPY) Three-month period ended June 30, 2026 Three-month period ended June 30, 2025 Operating activities: Profit for the period 303,080 197,761 Adjustments to reconcile profit for the period to cash flows from operating activities: Depreciation and amortization 89,128 74,745 Change in retirement benefit liabilities 380 (426) Loss allowance (57) (1,272) (Gain) loss on securities and other investments-net (86,996) (3,674) Impairment (reversal) loss of fixed assets-net 6,025 956 (Gain) loss on disposal or sales of fixed assets-net (208) (370) Interest income, dividend income and interest expense 1,437 (8,865) Income taxes 59,076 36,442 Share of (profit) loss of investments accounted for using the equity method (139,155) (120,913) Valuation (gain) loss related to contingent considerations and others 35,631 2,869 Changes in operating assets and liabilities: Change in trade and other receivables (173,627) 45,309 Change in inventories 46,846 24,646 Change in trade and other payables (3,757) (33,575) Change in advance payments to suppliers and advances from customers (6,307) 4,664 Change in derivative assets and liabilities (2,787) 35,315 Other-net (131,857) (52,984) Interest received 22,063 23,049 Interest paid (36,822) (36,288) Dividends received 119,371 123,879 Income taxes paid (59,188) (48,716) Cash flows from operating activities 42,276 262,552 Investing activities: Change in time deposits (1,048) (15,604) Investments in equity method investees (33,597) (61,263) Proceeds from sales of investments in equity method investees 7,564 16,675 Purchase of other investments (8,250) (14,227) Proceeds from sales and maturities of other investments 40,013 31,758 Increases in loan receivables (10,424) (22,421) Collections of loan receivables 5,088 3,949 Purchases of property, plant and equipment (93,816) (81,750) Proceeds from sales of property, plant and equipment 6,430 1,594 Purchases of investment property (850) (490) Proceeds from sales of investment property 145 45 Acquisition of subsidiaries or other businesses - (27,965) Cash flows from investing activities (88,745) (169,699) Financing activities: Change in short-term debt 115,858 30,595 Proceeds from long-term debt 677,318 415,165 Repayments of long-term debt (645,402) (325,626) Repayments of lease liabilities (32,852) (22,896) Purchases and sales of treasury stock 126 58 Dividends paid (170,055) (143,691) Transactions with non-controlling interests shareholders (6,484) (11,954) Cash flows from financing activities (61,491) (58,349) (4) Condensed Consolidated Statements of Cash Flows - 14 -
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(Mn JPY) Three-month period ended June 30, 2026 Three-month period ended June 30, 2025 Effect of exchange rate changes on cash and cash equivalents 9,834 (5,960) Change in cash and cash equivalents (98,126) 28,544 Cash and cash equivalents at beginning of period 982,722 977,356 Cash and cash equivalents at end of period 884,596 1,005,900 “Interest income, dividend income and interest expense”, “Interest received”, “Interest paid” and “Dividends received” in the condensed consolidated statements of cash flows include not only interest income, dividend income and interest expense that are included in “Finance income (costs)” in the condensed consolidated statements of income, but also interest income, dividend income, interest expense that are included in “Revenue” and “Cost” together with their related cash flows. (5) Assumption for Going Concern: None (6) Basis of Preparation of Condensed Consolidated Financial Statements The accompanying condensed consolidated financial statements have been prepared in accordance with the Article 5-2 of the Tokyo Stock Exchange’s standard for preparation of quarterly financial statements (however, a part of the disclosures required under IAS 34 “Interim Financial Reporting” is omitted under the Article 5-5 of the standard). IFRS Title Summaries IFRS 7 IFRS 9 Financial Instruments: Disclosures (amended in May 2024) Financial Instruments (amended in May 2024) Clarification of classification and measurement for financial instruments and disclosure of investments in equity IFRS 7 IFRS 9 Financial Instruments: Disclosures (amended in December 2024) Financial Instruments (amended in December 2024) Clarification of accounting treatment and disclosure for contracts referencing nature-dependent electricity (7) Changes in Accounting Policies Material accounting policies applied in the condensed consolidated financial statements for the period ended June 30, 2026 are the same as those applied in the consolidated financial statements of the previous fiscal year. The Group applied the following new standards for the condensed consolidated financial statements from April 1, 2026. Impacts from the application of these on the condensed consolidated financial statements are immaterial. - 15 -
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(Mn JPY) Mineral & Metal Resources Iron & Steel Products Energy Mobility, Digital & Infrastructure Chemicals Wellness Ecosystem Innovation & Corporate Development Total All other Adjustments and eliminations Consolidated total Revenue 633,513 162,914 1,102,138 486,648 955,946 907,547 98,791 4,347,497 68 - 4,347,565 Gross profit 61,131 14,717 77,950 58,422 87,159 59,819 53,618 412,816 1,006 (112) 413,710 Share of profit (loss) of investments accounted for using the equity method 27,558 5,920 9,379 64,732 6,550 16,430 8,441 139,010 - 145 139,155 Profit for the period attributable to owners of the parent 61,187 5,338 34,439 73,043 26,589 18,357 65,203 284,156 5,815 4,081 294,052 Core Operating Cash Flow 69,023 4,437 80,106 46,491 40,935 7,626 24,658 273,276 14,864 (7,227) 280,913 Total assets at June 30, 2026 4,384,601 886,914 3,960,784 4,600,700 2,335,100 3,153,371 2,334,448 21,655,918 10,482,538 (11,407,483) 20,730,973 (Mn JPY) Mineral & Metal Resources Iron & Steel Products Energy Mobility, Digital & Infrastructure Chemicals Wellness Ecosystem Innovation & Corporate Development Total All other Adjustments and eliminations Consolidated total Revenue 451,764 164,557 757,037 306,833 705,360 833,151 81,037 3,299,739 204 - 3,299,943 Gross profit 58,339 12,741 42,162 43,373 60,733 49,187 33,284 299,819 831 713 301,363 Share of profit (loss) of investments accounted for using the equity method 13,218 4,692 13,851 54,332 4,078 23,618 6,928 120,717 - 196 120,913 Profit for the period attributable to owners of the parent 51,522 6,482 20,235 49,436 30,927 14,818 10,307 183,727 4,019 3,901 191,647 Core Operating Cash Flow 71,928 6,327 48,419 33,379 32,703 (987) 12,065 203,834 20,306 (7,859) 216,281 Total assets at March 31, 2026 4,313,238 862,431 4,009,012 4,588,204 2,241,751 3,091,075 2,655,302 21,761,013 10,311,500 (11,250,985) 20,821,528 (8) Segment Information Three-month period ended June 30, 2026 (from April 1, 2026 to June 30, 2026) Three-month period ended June 30, 2025 (from April 1, 2025 to June 30, 2025) Notes: 1. “All other” includes the corporate staff unit which provides financing services and operations services to the Group and affiliated companies. Total assets of “All other” at March 31, 2026 and June 30, 2026 include cash, cash equivalents and time deposits related to financing activities, and assets of the corporate staff unit and certain subsidiaries related to the above services. 2. Transfers between reportable segments are made at cost plus a markup. 3. Profit for the period attributable to owners of the parent of “Adjustments and eliminations” includes income and expense items that are not allocated to specific reportable segments, and eliminations of intersegment transactions. 4. Core Operating Cash Flow is calculated by deducting the total of the “Changes in operating assets and liabilities” from the “Cash flows from operating activities”, and further deducting the “Repayments of lease liabilities” in the “Cash flows from financing activities” from it, in the condensed consolidated statements of cash flows. 5. During the three-month period ended June 30, 2026, the power generation business that had been included in the "Energy" segment was transferred to the "Machinery & Infrastructure" segment, and the "Machinery & Infrastructure" segment was renamed the "Mobility, Digital & Infrastructure" segment. In accordance with these changes, the segment information for the three-month period ended June 30, 2025 has been restated to conform to the current period presentation. 6. During the three-month period ended June 30, 2026, the segment formerly named "Lifestyle" was renamed the "Wellness Ecosystem" segment. This is a name change only and has no impact on the segment figures. The reportable segment information for the three-month period ended June 30, 2025 is also presented under the new name. - 16 -
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(9) Impact of the Russia-Ukraine Situation on the Russian LNG Business The Russian LNG business in the Company, its subsidiary, and the equity method investee in the Energy segment is affected by the Russia-Ukraine situation that has been ongoing since February 2022 and the resulting sanctions against Russia, and other factors. Based on factors such as discussions with each partner, the Company has evaluated its relevant assets and liabilities. In relation to the investment in Sakhalin II project held by MIT SEL Investment, a subsidiary of the Company that invests in Sakhalin Energy LLC (“SELLC”), while the decision on the new LLC member of SELLC was confirmed by Order of the Government of the Russian Federation dated March 23, 2024 (No. 701) and SELLC’s Corporate Charter was executed on July 10, 2026, the situation still remains uncertain due to certain factors such as being exposed to high geopolitical risks due to the nature of the business. Under this situation, the fair value of our investment in the Sakhalin II project is measured using the income approach by expected present value technique and the probability-weighted average considering a scenario where the continuous dividend income is expected from SELLC and other scenarios. As a result, fluctuation of fair value recognized in the current period is immaterial. The outstanding balances of “Other investments” in the condensed consolidated statements of financial position related to this project as of June 30, 2026 and March 31, 2026 was 65,457 million yen and 58,840 million yen, respectively. If changes occur hereafter in the international situation surrounding Russia including the Russia-Ukraine situation, the credit rating of the Russian Federation, the business environment by sanctions and other factors, or the Company's policies regarding Russian LNG business etc., such changes may have a significant impact on the estimates of related amounts in the consolidated financial statements for the next fiscal year and thereafter. The Company will continue to take appropriate measures. - 17 -