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1、Years ended March 31,20232022%RevenueMillions of Yen 14,306,40221.711,757,55946.8Profit before Income TaxesMillions of Yen1,395,29519.81,164,480158.7Profit for the YearMillions of Yen1,154,62723.1937,670167.6Profit for the Year Attributable to Owners of the ParentMillions of Yen1,130,63023.6914,7221
2、72.7Comprehensive Income for the YearMillions of Yen1,250,890(11.3)1,410,98841.7Earnings per Share Attributable to Owners of the Parent,BasicYen721.82561.61Earnings per Share Attributable to Owners of the Parent,DilutedYen721.41561.38Profit Ratio to Equity Attributable to Owners of the Parent%18.918
3、.0Profit before Income Taxes to Total Assets%9.28.5March 31,2023 March 31,2022Total AssetsMillions of Yen15,380,91614,923,290Total EquityMillions of Yen6,565,1485,795,416Total Equity Attributable to Owners of the ParentMillions of Yen6,367,7505,605,205Equity Attributable to Owners of the Parent Rati
4、o%41.437.6Equity per Share Attributable to Owners of the ParentYen4,177.493,501.21Consolidated Financial Results for the Year Ended March 31,2023 IFRSTokyo,May 2,2023-Mitsui&Co.,Ltd.announced its consolidated financial results for the year ended March 31,2023,based on International Financial Reporti
5、ng Standards(“IFRS”).Mitsui&Co.,Ltd.and subsidiaries(Website:https:/ and Chief Executive Officer:Kenichi HoriInvestor Relations Contacts:Hideaki Konishi,Investor Relations Division TEL 81-3-3285-11111.Consolidated financial results(1)Consolidated operating results information for the year ended Marc
6、h 31,2023(from April 1,2022 to March 31,2023)Note:1.Percentage figures for Revenue,Profit before Income Taxes,Profit for the Year,Profit for the Year Attributable to Owners of the Parent,and Comprehensive Income for the Year represent changes from the previous year.2.Share of profit(loss)of investme
7、nts accounted for using the equity method for the years ended March 31,2023 and 2022 were 555,526 million and 431,263 million,respectively.(2)Consolidated financial position informationYears ended March 31,20232022Operating ActivitiesMillions of Yen1,047,537806,896Investing ActivitiesMillions of Yen
8、(178,341)(181,191)Financing ActivitiesMillions of Yen(634,685)(614,325)Cash and Cash Equivalents at the End of YearMillions of Yen1,390,1301,127,868Years ended March 31,Year ending March 31,2024(Forecast)20232022Interim dividend per shareYen654575Year-end dividend per shareYen756075Annual dividend p
9、er shareYen140105150Annual dividend(total)Millions of Yen216,879169,586Consolidated dividend payout ratio%19.418.725.7Consolidated dividend on equity attributable to owners of the parent%3.63.4Year endingMarch 31,2024Profit Attributable to Owners of the ParentMillions of Yen880,000Earnings per Share
10、 Attributable to Owners of the Parent,BasicYen582.79()Changes in accounting policies required by IFRSNone()Other changesNone()Changes in accounting estimatesYes(3)Consolidated cash flow information2.Dividend informationNote:For the dividend policy,please refer to p.25“(3)Profit Distribution Policy.”
11、The amount of dividend for the shares related to the share-based compensation plan for employees included in the Annual dividend for the years ended March 31,2023 and 2022 were 529 million and 405 million,respectively.3.Forecast of consolidated operating results for the year ending March 31,2024(fro
12、m April 1,2023 to March 31,2024)4.Others(1)Increase/decrease of important subsidiaries during the Year:None(2)Changes in accounting policies and accounting estimate:Note:For further details,please refer to p.33“5.Consolidated Financial Statements(7)Changes in Accounting Estimates.”March 31,2023March
13、 31,2022Number of shares of common stock issued,including treasury stock1,544,660,5441,642,355,644Number of shares of treasury stock20,361,04941,423,291Year endedMarch 31,2023Year endedMarch 31,2022Average number of shares of common stock outstanding1,566,366,5531,628,744,153(3)Number of shares:This
14、 earnings report is not subject to audit.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 Mitsuis current assumptions,expectations and beliefs i
15、n light of the information currently possessed by it.Various factors may cause Mitsuis 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 pe
16、rformance will be realized.For key assumptions on which the statements concerning future performance are based,please refer to(2)“Forecasts for the Year Ending March 31,2024”on p.22.For cautionary notes with respect to forward-looking statements,please refer to the“Notice”section on p.26.Supplementa
17、ry materials and IR meetings on financial results:Supplementary materials on financial results can be found on our website.We will hold IR meetings for analysts and institutional investors on financial results on May 2,2023,and on the new Medium-term Management Plan on May 9,2023.Contents of the mee
18、ting(English and Japanese)will be posted on our website immediately after the meeting.1.Qualitative Information(1)Operating Environment2(2)Results of Operations.3(3)Financial Condition and Cash Flows.152.Management Policies(1)New Medium-term Management Plan.22(2)Forecasts for the Year Ending March 3
19、1,2024.22(3)Profit Distribution Policy.253.Basic Approach on Adoption of Accounting Standards254.Other Information.265.Consolidated Financial Statements(1)Consolidated Statements of Financial Position27(2)Consolidated Statements of Income and Comprehensive Income.29(3)Consolidated Statements of Chan
20、ges in Equity.31(4)Consolidated Statements of Cash Flows.32(5)Assumption for Going Concern.33(6)Basis of Consolidated Financial Statements33(7)Changes in Accounting Estimates.33(8)Notes to Consolidated Financial Statements.34Table of Contents-1-1.Qualitative InformationAs of the date of disclosure o
21、f this earnings report,the audit procedures for consolidated financial statements have not been completed.As used in this report,“Mitsui”and the“Company”refer to Mitsui&Co.,Ltd.(Mitsui Bussan Kabushiki Kaisha),and“we,”“us,”“our,”“Mitsui&Co.group”and the“companies”are used to indicate Mitsui&Co.,Ltd.
22、and its subsidiaries,unless otherwise indicated.(1)Operating EnvironmentIn the year ended March 31,2023,the global economy slowed compared to the previous year due to rising inflation and rapid monetary tightening,mainly in the US,Europe and other developed countries,the ripple effects from the Russ
23、ia-Ukraine situation,and the impact of turmoil in the Chinese economy stemming from the zero-COVID policy in China.In addition,new risk factors emerged at the end of the fiscal year,such as the collapse of regional financial institutions in the US.In the US,although consumer spending generally conti
24、nued to recover backed by a strong employment situation and other factors despite continued high inflation,the rapid monetary tightening led to a decline in housing investment and sluggish growth in capital investment,resulting in a slowdown in the economy.Looking ahead,the economy is expected to sl
25、ow further due to monetary tightening and the impact from the collapse of regional financial institutions.In Europe,the economy weakened due to supply constraints in energy,caused by the Russia-Ukraine situation,as well as due to a rise in prices and other factors.Looking ahead,the economy is expect
26、ed to stall due to continued high inflation and monetary tightening.In Japan,service consumption and inbound demand began to recover amid the ongoing normalization of economic activity,but the pickup was slow due to refrained goods consumption and sluggish exports in the face of rising prices.Lookin
27、g ahead,the economy is expected to maintain a moderate recovery trend,partly due to the trend of wage hikes exceeding the previous years increase and policy support.In China,the economy slowed further last year due to the impact of the zero-COVID policy and the deterioration of the real estate marke
28、t,but with the lifting of the zero-COVID policy at the end of last year,domestic demand,including consumption of services,showed signs of picking up.Looking ahead,the economy is expected to pick up gradually,partly due to policy support such as lowering of the reserve ratio.In Brazil,the economy is
29、expected to slow down due to the monetary tightening done up until last year and other factors.In Russia,economic activity is expected to remain stagnant due to economic sanctions imposed by the international community.Looking ahead,although there are expectations for a recovery in China,the global
30、economy is expected to remain in a slowdown phase overall due to high inflation and continued monetary tightening in the US,Europe,and other developed countries,as well as concerns about the financial system,while the effects of the situation in Russia and Ukraine are expected to linger.-2-(Billions
31、 of Yen)Current YearPrevious YearChangeRevenue14,306.411,757.6+2,548.8Gross Profit1,396.21,141.4+254.8Selling,General and Administrative Expenses(702.8)(596.3)(106.5)Other Income(Expenses)Gain(Loss)on Securities and Other InvestmentsNet59.58.7+50.8Impairment Reversal(Loss)of Fixed AssetsNet(30.0)(19
32、.1)(10.9)Gain(Loss)on Disposal or Sales of Fixed AssetsNet19.414.5+4.9Other Income(Expense)Net9.214.9(5.7)Finance Income(Costs)Interest Income47.820.0+27.8Dividend Income154.9196.5(41.6)Interest Expense(114.6)(47.3)(67.3)Share of Profit(Loss)of Investments Accounted for Using the Equity Method555.54
33、31.3+124.2Income Taxes(240.7)(226.8)(13.9)Profit for the Year1,154.6937.7+216.9Profit for the Year Attributable to Owners of the Parent1,130.6914.7+215.9(2)Results of Operations1)Analysis of Consolidated Income Statements*May not match with the total of items due to rounding off.The same shall apply
34、 hereafter.RevenueRevenue for the year ended March 31,2023(“current year”)was 14,306.4 billion,an increase of 2,548.8 billion from 11,757.6 billion for the year ended March 31,2022(“previous year”).The increase was mainly in the Energy Segment and the Lifestyle Segment.Gross ProfitMainly the Energy
35、Segment and the Machinery&Infrastructure Segment recorded an increase,while the Mineral&Metal Resources Segment recorded a decrease.-3-Billions of YenCurrent YearPrevious YearChange*Personnel.(384.0)(333.6)(50.4)Welfare(13.4)(11.8)(1.6)Travel.(25.2)(10.6)(14.6)Entertainment.(6.4)(3.2)(3.2)Communicat
36、ion.(55.3)(48.6)(6.7)Rent.(11.7)(9.0)(2.7)Depreciation(41.2)(35.0)(6.2)Fees and Taxes(17.3)(12.9)(4.4)Loss Allowance.(18.9)(20.2)+1.3Others.(129.4)(111.4)(18.0)Total(702.8)(596.3)(106.5)Selling,General and Administrative ExpensesMainly the Machinery&Infrastructure Segment and the Chemicals Segment r
37、ecorded an increase in expenses.The table provides a breakdown.*Negative amounts in the“Change”column displayed in parentheses represent an increase in expenses.Other Income(Expenses)Gain(Loss)on Securities and Other InvestmentsNetFor the current year,a gain on securities was recorded mainly in the
38、Mineral&Metal Resources Segment and Innovation&Corporate Development Segment,while an impairment loss was recorded in the Machinery&Infrastructure Segment.For the previous year,a gain on securities was recorded mainly in the Lifestyle Segment,while an impairment loss was recorded in the Machinery&In
39、frastructure Segment.Impairment Reversal(Loss)of Fixed AssetsNetFor the current year,mainly the Machinery&Infrastructure Segment recorded impairment losses on fixed assets.For the previous year,mainly the Energy Segment recorded impairment losses on fixed assets.Gain(Loss)on Disposal or Sales of Fix
40、ed AssetsNetFor the current and previous years,mainly the Innovation&Corporate Development Segment recorded gains on sales of fixed assets.Other Income(Expense)NetFor the current and previous years,the Energy Segment recorded a provision,while the Lifestyle Segment recorded a valuation profit of a p
41、ut option,and the Chemicals Segment recorded insurance proceeds.Finance Income(Costs)Dividend IncomeMainly the Mineral&Metal Resources Segment recorded a decrease.-4-Share of Profit(Loss)of Investments Accounted for Using the Equity MethodMainly the Energy Segment and the Machinery&Infrastructure Se
42、gment recorded an increase,while the Mineral&Metal Resources Segment recorded a decrease.Income TaxesIncome taxes for the current year were 240.7 billion,an increase of 13.9 billion from 226.8 billion for the previous year.The effective tax rate for the current year was 17.2%,a decrease of 2.3 point
43、s from 19.5%for the previous year.The effective tax rate decreased due to the tax effect of a portion of equity method profit-which increased,not being recognized,and other factors.Profit for the Year Attributable to Owners of the ParentAs a result,profit for the year attributable to owners of the p
44、arent was 1,130.6 billion,an increase of 215.9 billion from the previous year.-5-(Billions of Yen)CurrentYearPreviousYearChangeDescriptionProfit for the Year Attributable to Owners of the Parent438.8497.6(58.8)Gross Profit355.8392.5(36.7)Iron ore mining operations in Australia -60.2(lower prices)Coa
45、l mining operations in Australia+20.2 (higher prices)Profit(Loss)of Equity Method Investments127.6145.3(17.7)Iron ore mining operations in Australia-12.2(lower prices)Oriente Copper Netherlands*1-8.8(lower prices)Japan Collahuasi Resources*2-8.7(lower prices)Inner Mongolia Erdos Electric Power&Metal
46、lurgical-3.2(lower prices in ferroalloys and chemicals businesses)Increase in coal mining operations in Australia(higher prices)Dividend Income74.3124.3(50.0)Lower dividend from Vale and iron ore mining operations in AustraliaSelling,General and Administrative Expenses(33.4)(30.2)(3.2)Others(85.5)(1
47、34.3)+48.8 Gain on sale of Stanmore SMC+36.7 Increase due to copper price hedge transactions Japan Collahuasi Resources-6.2(absence of a deferred tax liability reversal in the previous year*3)2)Operating Results by Operating SegmentThe fluctuation analysis for the results by operating segment is as
48、follows.Note,“Others”includes income taxes,but generally,the impact of income taxes are not included in the explanations in the“Description”column relation to each account title.Mineral&Metal Resources Segment*1 An investor in Inversiones Mineras Becrux,which invests in Anglo American Sur,a copper m
49、ining company in Chile.*2 An investor in Compaa Minera Doa Ins de Collahuasi,a copper mining company in Chile.*3 A deferred tax liability reversal related to the restructuring of Japan Collahuasi Resources.-6-(Billions of Yen)CurrentYearPreviousYearChangeDescriptionProfit for the Year Attributable t
50、o Owners of the Parent309.4114.0+195.4Gross Profit316.4145.4+171.0 Increase in LNG Trading Mitsui E&P USA+41.3(higher gas prices)Mitsui E&P Australia+35.1(higher oil prices)Mitsui E&P Italia B+14.4(cost improvements)Mitsui E&P Middle East+10.8(higher oil prices)MEP Texas Holdings+9.6(higher oil and
51、gas prices)MOEX North America+7.2(higher oil prices)Decrease in fuel supply related business-7.7Profit(Loss)of Equity Method Investments108.532.3+76.2 Increase in Japan Australia LNG(MIMI)(higher oil and gas prices)Japan Arctic LNG+10.2(oil price and foreign exchange valuation profit)Mitsui&Co.LNG I
52、nvestment USA+5.2(increase in volume)Mitsui Oil Exploration+3.1(changes to lease accounting,other factors)Mitsui E&P Mozambique Area 1-3.5(recorded provision on a financial asset)Dividend Income58.753.6+5.1 4 LNG projects*1+3.9(current year+56.7,previous year+52.8)Selling,General and Administrative
53、Expenses(57.9)(53.1)(4.8)Absence of provision loss in relation to valuation allowance of a loan for Japan Arctic LNG recorded in the previous year+4.5Energy Segment-7-Others(116.3)(64.2)(52.1)Mitsui Oil Exploration-13.6(recorded provision)Mitsui E&P Australia-8.8(recorded provision)Impairment loss i
54、n biomass power generation business-3.3 Absence of provision loss in relation to valuation allowance of a guarantee for Arctic LNG2 project guarantees recorded in previous year,other factors+12.4 Foreign exchange hedge related profit in fuel supply business,other factors+6.4 Absence of valuation los
55、s*2 in Mitsui Oil Exploration Block M-3 exploration project in previous year+4.6*1 Sakhalin II,Abu Dhabi,Oman and Qatargas 3.Includes Qatargas 1 for which interest expired during the previous year.*2 For the previous year,Mitsui Oil Exploration recorded an impairment loss of 7.3 billion for Block M-
56、3 exploration project and profit of 2.7 billion in relation to a reversal of reserve for an overseas investment loss.-8-(Billions of Yen)CurrentYearPreviousYearChangeDescriptionProfit for the Year Attributable to Owners of the Parent171.9120.8+51.1Gross Profit199.9142.9+57.0 Construction&industrial
57、machinery businesses+12.4(good sales performance)Inversiones Mitta consolidation+7.7 Bussan Auto Finance+7.7(increase in interest income due to an accumulation of operating assets)Position Partners consolidation+5.1 Hino Mexico+3.7(good sales performance)Profit(Loss)of Equity Method Investments197.3
58、146.0+51.3 MBK USA Commercial Vehicles +18.9(good performance of truck leasing and rental business)Tanker owning company(increase in vessel related revenue)Penske Automotive Group +9.1(good sales performance)FPSO+7.8(increase due to MV30/31 operations starting)Canadian automobile company(increase in
59、 unit sales,decrease in sales promotion expenses)Gas distribution business+6.4(steady gas demand)VLI-6.5(impairment loss of fixed assets,other factors*1-8.6)IPP-13.1(impairment loss of Hezhou project in China*2-6.5,weak performance at Mainstreams projects in Chile,weak performance in Ontario,Canada,
60、impact of steep rise in electricity and gas prices in Australia,increase due to a portion of Thai business becoming operational)Dividend Income4.24.1+0.1Selling,General and Administrative Expenses(163.6)(127.7)(35.9)Position Partners consolidation-5.1 Bussan Auto Finance-3.6(increase of provisions d
61、ue to an accumulation of operating assets)Machinery&Infrastructure Segment-9-Others(65.9)(44.5)(21.4)Fixed assets valuation loss in Brazilian passenger railway business*3-15.1 MT Falcon impairment loss*4 current year:-3.1,previous year:-9.7 Decrease in corporate income tax burden resulting from the
62、sale of Lucid Group shares+7.2*5*1 VLI recorded a fixed assets impairment loss of 6.7 billion and a reversal of deferred tax assets of 1.9 billion due to the reassessment of a recoverable amount of some assets related to a Brazilian freight railway concession.*2 An equity method loss of 6.5 billion
63、was recorded due to the reassessment of a recoverable amount of assets of Hezhou Power Plant Project.*3 A fixed assets impairment loss was recorded based on the latest estimation regarding the decrease in revenue and the increased discount rate for the passenger railway business in Brazil.*4 For the
64、 current year,an impairment loss of 3.1 billion was recorded,based on the conclusion of a sale and purchase agreement for the shares of MT Falcon Holdings.For the previous year,an impairment loss of 9.7 billion was recorded,based on the conclusion of a sale and purchase agreement for the shares of M
65、T Falcon Holdings.*5 The corporate income tax burden was reduced due to tax expenses being recognized as other comprehensive income resulting from the sale of financial assets in Lucid Group shares measured at FVTOCI.-10-(Billions of Yen)CurrentYearPreviousYearChangeDescriptionProfit for the Year At
66、tributable to Owners of the Parent70.968.9+2.0Gross Profit209.3183.0+26.3 Mitsui AgriScience International*1+6.4(strong crop protection demand)Increase in fertilizer related trading(higherprices)Intercontinental Terminals Company+3.3(good performance)MMTX-6.8(higher raw material prices,lower sales p
67、rices)Profit(Loss)of Equity Method Investments27.420.7+6.7 MVM Resources+5.1(higher phosphate ore prices)Dividend Income3.83.3+0.5Selling,General and Administrative Expenses(137.4)(112.8)(24.6)Mitsui AgriScience International*1-4.7(costs related to business integration)Others(32.2)(25.3)(6.9)Interco
68、ntinental Terminals Company incident*2(Billions of Yen)CurrentYearPreviousYearChangeDescriptionProfit for the Year Attributable to Owners of the Parent22.526.9(4.4)Gross Profit40.735.5+5.2 Mitsui&Co.Steel+4.3(good trading performance in first half)Overseas trading subsidiary-3.7(lower prices)Profit(
69、Loss)of Equity Method Investments24.726.0(1.3)NuMit*1-4.6(inventory valuation loss,lower prices)Dividend Income3.01.7+1.3Selling,General and Administrative Expenses(27.6)(23.6)(4.0)Others(18.3)(12.7)(5.6)Chemicals Segment*1 Due to a merger,the combined total of Mitsui AgriScience International and i
70、ts affiliate Certis Belchim have been used for figures for the previous year.*2 Insurance proceeds and costs were recorded in Intercontinental Terminals Company both for the current year and previous year.(Current year:7.3 billion of profit)Iron&Steel Products Segment*1 An investment company of Stee
71、l Technologies.-11-(Billions of Yen)CurrentYearPreviousYearChangeDescriptionProfit for the Year Attributable to Owners of the Parent54.861.5(6.7)Gross Profit153.7143.0+10.7 Good performance in grain trading+5.8 Foreign exchange impact in coffee trading business+4.9 Foreign exchange impact in MITSUI&
72、CO.COFFEE TRADING(Brazil)+3.5 Fair value valuation loss of drug discovery support fund*1-6.1Profit(Loss)of Equity Method Investments50.741.1+9.6 IHH Healthcare+8.5(good performance in the hospital business and asset recycling,etc.)WILSEY FOODS+5.5(good performance at Ventura Foods,a manufacturer of
73、processed oil food)PHC Holdings deconsolidation*2-4.3Dividend Income6.25.6+0.6Selling,General and Administrative Expenses(142.0)(130.7)(11.3)Others(13.8)2.5(16.3)Absence of valuation gain of Mitsui Bussan I-Fashion recorded in the previous year-10.7 Absence of PHC Holdings securities related profit
74、recorded in the previous year-8.9 Foreign exchange hedging loss in coffee trading-4.5 Decrease in corporate income tax burden resulting from the sale of financial assets measured at FVTOCI*3+12.2 Multigrain related tax refund+5.0 Put option related to JSC R-Pharm*4current year+6.5,previous year-6.2L
75、ifestyle Segment*1 Valuation loss of a drug investment from a drug discovery support fund made through MBK Pharma Partnering.*2 Absence of equity method profit recorded in the previous year following the deconsolidation of PHC Holdings.*3 The corporate income tax burden was reduced due to tax expens
76、es being recognized as other comprehensive income resulting from the sale of financial assets measured at FVTOCI.*4 A valuation gain was recorded for a put option in relation to JSC R-Pharm.-12-(Billions of Yen)CurrentYearPreviousYearChangeDescriptionProfit for the Year Attributable to Owners of the
77、 Parent66.757.6+9.1Gross Profit112.697.7+14.9 Mitsui Bussan Commodities+15.3(good performance of commodity derivative trading)Absence of sale of shares in Wise in the previous year-3.5Profit(Loss)of Equity Method Investments18.919.7(0.8)Peterson Ventures Partners-4.4(fall in fair value of shares)Div
78、idend Income3.82.8+1.0Selling,General and Administrative Expenses(82.7)(67.8)(14.9)Mitsui Bussan Commodities-6.4Others14.15.2+8.9 Gain on sale of real estate business in Singapore*1 Gain on sale of part of Hibiya Fort Tower+5.9 Gain on sale of investment securities+4.0 Gain on sale of real estate in
79、 the US*2+3.6 Absence of gain on sale of land recorded in the previous year-5.1Innovation&Corporate Development Segment*1 A gain on sale of Southernwood Property,an investment vehicle that owns an office building in Singapore.*2 Fixed asset sale of multiple property sales in the US.-13-3)Evaluation
80、of assets and liabilities for the Russian LNG businessThe Russian LNG business in which we participate,is affected by the Russia-Ukraine situation.Based on discussions with each partner,we have evaluated its relevant assets and liabilities.In relation to the investment in the Sakhalin II project,we
81、undertook the ownership of Sakhalin Energy LLC(“SELLC”)on September 2,2022,which was established based on Russian Presidential Decree(No.416)dated June 30,2022,and Resolution of the Government of the Russian Federation dated August 2,2022(No.1369),through MIT SEL Investment,a newly established subsi
82、diary.Consequently,we continue to invest in the Sakhalin II project and the reorganization does not materially impact the Consolidated Financial Statements.As of March 31,2023,the situation still remains uncertain as the final LLC members composition is not yet decided,the LLC members agreement is n
83、ot signed,etc.Based on the current situation,the fair value was measured using the income approach by expected present value technique with the probability-weighted average considering a scenario where the continuous dividend income is predicted through an investment in SELLC and other scenarios.As
84、a result,the investment balance in Sakhalin II project as of March 31,2023 was 98.5 billion.Also,in the year ended March 31,2023,a decrease of 126.0 billion in the fair value of the investment was recorded in Other Comprehensive Income.While the decision on the new LLC member has been acknowledged b
85、y Order of the Government of the Russian Federation dated April 11,2023(No.890),the Company has concluded there is no impact on the above fair value.The fair value may increase or decrease due to further changes in situation hereafter.The Company did not recognize any significant profit and loss or
86、Other Comprehensive Income in the current year with respect to the Arctic LNG2 project.The balance of the investments,loans and guarantees related to the Arctic LNG2 project was 239.2 billion(15.8 billion in investments and loans and 223.4 billion in guarantees)as of March 31,2023.In addition,a prov
87、ision for loss on guarantees of 18.2 billion has been recorded.For further details,please refer to“5.Consolidated Financial Statements(8)Notes to Consolidated Financial Statements Impact of the Russia-Ukraine Situation on the Russian LNG Business”.-14-(Billions of Yen)March 31,2023March 31,2022Chang
88、eTotal Assets15,380.914,923.3+457.6Current Assets5,674.85,716.7(41.9)Non-current Assets9,706.19,206.6+499.5Current Liabilities3,766.63,808.6(42.0)Non-current Liabilities5,049.15,319.2(270.1)Net Interest-bearing Debt3,212.73,338.9(126.2)Total Equity Attributable to Owners of the Parent6,367.85,605.2+
89、762.6Net Debt-to-Equity Ratio(times)0.500.60(0.10)(Billions of Yen)March 31,2023March 31,2022ChangeDescriptionCurrent Assets5,674.85,716.7(41.9)Cash and cash equivalents1,390.11,127.9+262.2Trade and other receivables2,191.22,303.1(111.9)Trade receivables-164.5(EN*1)Market fluctuation,decrease in tra
90、ding volume Loan receivables+57.4(MI*1)Increase in the current portion of long-term loan receivablesOther financial assets773.0997.9(224.9)(IC*1,LI*1)Market fluctuation,decrease in derivative assets(EN*1)Market fluctuation,decrease in trading volumeInventories940.5949.7(9.2)Advance payments to suppl
91、iers226.7183.4+43.3(MI*1)Increase in trading volumeOther Current assets153.3154.7(1.4)(3)Financial Condition and Cash Flows1)Financial ConditionAssetsCurrent Assets:*1 EN:Energy Segment,MI:Machinery&Infrastructure Segment,IC:Innovation&Corporate Development Segment,LI:Lifestyle Segment-15-(Billions
92、of Yen)March 31,2023March 31,2022ChangeDescriptionNon-current Assets9,706.19,206.6+499.5Investments accounted for using the equity method3,929.63,387.4+542.2 Investments accounted for using the equity method+555.5 Foreign exchange fluctuations+216.2 Investment in the holding company of Mainstream Re
93、newable Power+79.8 Investment in Climate Friendly Investment in Ouro Fino Sade Animal Investment in FPSO(Libra MV31)+15.7 Investment in New Forests Investment in Mitsui E&P Mozambique Area 1+10.6 Dividends from equity accounted investees-425.9 Sale of Stanmore SMC-15.1(Sale-29.6,change in period+14.
94、5)Sale of Southernwood Property-10.7Other investments2,134.12,347.4(213.3)Fair value of FVTOCI financial assets-246.8(including-126.0 from equity interest in Sakhalin II project)(LI*1)Sale of FVTOCI financial assets-42.5 Sale of shares in Lucid Group-25.1 Foreign exchange fluctuations+41.0 Investmen
95、t in a large-scale renewable energy project in IndiaTrade and other receivables320.0320.00Other financial assets208.0167.8+40.2(MI*1)Increase in trading volumeProperty,plant and equipment2,300.62,190.9+109.7 Oil and gas projects+48.8(including foreign exchange fluctuations+7.6)MITSUI FOODS new logis
96、tics center+33.4 Intercontinental Terminals Company+11.0(including foreign exchange fluctuations+11.1)M&T Aviation sale of owned aircraft-10.9 Sale of ships owned by OMC Shipping-10.6Non-current Assets:-16-Investment property282.5318.6(36.1)Xingu Agri-22.1(including sale of agricultural land-33.2,fo
97、reign exchange+13.4)MBK Real Estate Holdings -14.4(including sale of multiple properties-20.8)Intangible assets277.3253.0+24.3 Consolidations(Position Partners,Lee Soon Seng Plastics Industries)Brazilian passenger railway business-13.2(including impairment-15.1)Deferred tax assets105.2100.7+4.5Other
98、 non-current assets148.8120.8+28.0 Increase in pension related assets(premium contributions)(Billions of Yen)March 31,2023March 31,2022ChangeDescriptionCurrent Liabilities3,766.63,808.6(42.0)Short-term debt432.2281.8+150.4Current portion of long-term debt811.0410.3+400.7Trade and other payables1,510
99、.41,739.1(228.7)Decrease in trade payablesOther financial liabilities622.01,003.2(381.2)Decrease in derivative liabilitiesIncome tax payables49.368.5(19.2)Advances from customers234.9202.1+32.8 Corresponding to increase in advance paymentsProvisions59.048.6+10.4(EN*1,CH*1)Increase in provisionsOther
100、 current liabilities47.855.0(7.2)Non-current Liabilities5,049.15,319.2(270.1)Long-term debt,less the current portion3,797.34,185.4(388.1)Other financial liabilities223.4147.0+76.4Increase in derivative liabilitiesRetirement benefit liabilities37.038.0(1.0)Provisions310.5266.2+44.3(EN*1)Increase in a
101、sset retirement obligationsDeferred tax liabilities648.3654.0(5.7)Other non-current liabilities32.628.6+4.0*1 LI:Lifestyle Segment,MI:Machinery&Infrastructure SegmentLiabilities*1 EN:Energy Segment,CH:Chemicals Segment-17-(Billions of Yen)March 31,2023March 31,2022ChangeDescriptionCommon stock342.63
102、42.4+0.2Capital surplus381.9376.5+5.4Retained earnings4,840.54,166.0+674.5Other components of equity869.0827.4+41.6Financial assets measured at FVTOCI215.6465.1(249.5)Lower share prices,decrease in fair value of Sakhalin II projectForeign currency translation adjustments638.5478.6+159.9 USD+123.7 (M
103、ar-23 JPY133.53/USD,up from Mar-22 JPY122.39/USD)AUD-27.9 (Mar-23 JPY89.69/AUD,down from Mar-22 JPY92.00/AUD)Cash flow hedges14.9(116.3)+131.2 Commodity price and interest rate hedge accountingTreasury stock(66.2)(107.1)+40.9 Cancellation of treasury stock+310.7 Share repurchase-270.0Total Equity At
104、tributable to Owners of the Parent6,367.85,605.2+762.6Non-controlling interests197.4190.2+7.2(Billions of Yen)Current Year Previous YearChangeCash Flows from Operating Activities1,047.5806.9+240.6Cash Flows from Investing Activities(178.3)(181.2)+2.9Free Cash Flow869.2625.7+243.5Cash Flows from Fina
105、ncing Activities(634.7)(614.3)(20.4)Effect of Exchange Rate Changes on Cash and Cash Equivalents27.853.3(25.5)Change in Cash and Cash Equivalents262.364.7+197.6Equity2)Cash Flows-18-(Billions of Yen)Current Year Previous YearChangeCash Flows from Operating Activitiesa1,047.5806.9+240.6Cash Flows fro
106、m Change in Working Capitalb(223.5)(407.4)+183.9Repayments of Lease Liabilitiesc(65.5)(55.6)(9.9)Core Operating Cash Flowa-b+c1,205.51,158.7+46.8(Billions of Yen)Current YearPrevious YearChangeMineral&Metal Resources436.7552.8(116.1)Energy419.6280.2+139.4Machinery&Infrastructure182.9144.0+38.9Chemic
107、als89.593.8(4.3)Iron&Steel Products18.012.4+5.6Lifestyle31.135.2(4.1)Innovation&Corporate Development46.646.60All Other and Adjustments and Eliminations(18.9)(6.3)(12.6)Consolidated Total1,205.51,158.7+46.8(Billions of Yen)Current YearPrevious YearChangeMineral&Metal Resources58.751.3+7.4Energy88.21
108、38.5(50.3)Machinery&Infrastructure34.823.9+10.9Chemicals31.624.7+6.9Iron&Steel Products1.51.4+0.1Lifestyle23.221.8+1.4Innovation&Corporate Development18.818.1+0.7All Other and Adjustments and Eliminations15.916.7(0.8)Consolidated Total272.7296.4(23.7)Cash Flows from Operating ActivitiesCash flows fr
109、om change in working capital(changes in operating assets and liabilities)was 223.5 billion of net cash outflow.Repayments of lease liabilities was 65.5 billion of cash outflow.Core Operating Cash Flow,which equals cash flows from operating activities excluding changes in working capital and repaymen
110、ts of lease liabilities,amounted to 1,205.5 billion.-Net cash inflow from dividend income,including dividends received from equity accounted investees,for the current year totaled 574.2 billion,an increase of 19.4 billion from 554.8 billion for the previous year.-Depreciation and amortization for th
111、e current year was 272.7 billion,a decrease of 23.7 billion from 296.4 billion for the previous year.The following table shows Core Operating Cash Flow by operating segment.The following table shows Depreciation and amortization by operating segment.-19-(Billions of Yen)Current YearPrevious YearDesc
112、ription of Current YearCash flows from investing activities(178.3)(181.2)Net change in investments in equity accounted investees(103.4)(27.1)Cash outflow(238.6)(92.2)Mainstream Renewable Power holding company-79.8 Climate Friendly Ouro Fino Sade Animal FPSO(Libra MV31)-15.7 New Forests Mit Power Cap
113、itals-11.5 Japan Arctic LNG Mitsui E&P Mozambique Area 1 -10.6Cash inflow135.265.1 Stanmore SMC+54.9 Southernwood Property+20.1 MT Falcon Holdings+11.6Net change in other investments33.9(43.8)Cash outflow(100.4)(106.1)Large-scale renewable energy project in IndiaCash inflow134.362.3(LI*1)Sale of FVT
114、OCI financial assets Lucid Group+25.1Net change in property,plant and equipment(190.0)(156.6)Cash outflow(228.0)(185.5)Oil and gas projects-50.9 Iron ore mining operations in Australia-43.7 Coal mining operations in Australia-24.7 MyPower-17.0 Intercontinental Terminals Company-13.0Cash inflow38.028
115、.9 M&T Aviation sale of owned aircraft+10.9Net change in investment property48.4(4.5)Cash outflow(12.3)(26.4)Cash inflow60.721.9 Sale of multiple properties by MBK Real Estate Holdings+32.6 Sale of Xingu Agri agricultural land+17.9 Partial sale of Hibiya Fort TowerNet change in loan receivables(4.2)
116、50.0Net change in time deposits37.00.8Cash Flows from Investing Activities-20-(Billions of Yen)Current YearPrevious YearDescription of Current YearCash flows from financing activities(634.7)(614.3)Net change in short-term debt168.7(82.5)Net change in long-term debt(217.6)(55.0)(Proceeds from long-te
117、rm debt)1,041.21,206.6(Repayments of long-term debt)(1,258.8)(1,261.6)Repayments of lease liabilities(65.5)(55.6)Purchase and sales of treasury stock-net(270.2)(174.9)Dividends paid(198.1)(148.2)Transactions with non-controlling interest shareholders(52.0)(98.1)Mainly payment of additional acquisiti
118、on of shares in Mitsui Oil ExplorationCash Flows from Financing Activities-21-2.Management Policies(1)New Medium-term Management PlanReference is made to our new Medium-term Management Plan“Medium-term Management Plan 2026 Creating Sustainable Futures”,announced on our corporate website today.Assump
119、tionMarch 2024ForecastMarch 2023ResultExchange rate(USD/JPY)130.00136.00Crude oil(JCC)$79/bbl$103/bblConsolidated oil price$88/bbl$93/bbl(Billions of Yen)March 31,2024ForecastMarch 31,2023ResultIncrease/(Decrease)DescriptionGross Profit1,170.01,396.2(226.2)Lower commodity pricesSelling,General and A
120、dministrative Expenses(750.0)(702.8)(47.2)Gain(Loss)on Investments,Fixed Assets and Other230.058.3+171.7One-time valuation gainAsset recyclingInterest Expenses(110.0)(66.8)(43.2)Higher interest ratesDividend Income160.0154.9+5.1Profit(Loss)of Equity Method Investments440.0555.5(115.5)Lower commodity
121、 pricesProfit before Income Taxes1,140.01,395.3(255.3)Income Taxes(240.0)(240.7)+0.7Non-Controlling Interests(20.0)(24.0)+4.0Profit for the Year Attributable to Owners of the Parent880.01,130.6(250.6)Depreciation and Amortization270.0272.7(2.7)Core Operating Cash Flow870.01,205.5(335.5)(2)Forecasts
122、for the Year Ending March 31,20241)Forecasts for the year ending March 31,2024For further major assumptions in addition to oil prices and USD/JPY and sensitivities,please refer to“2)Key commodity prices and other parameters for the year ending March 31,2024”.-22-(Billions of Yen)Year endingMarch 31,
123、2024Year endedMarch 31,2023Increase/(Decrease)DescriptionMineral&Metal Resources290.0438.8(148.8)Metallurgical coal and iron ore pricesAbsence of gain from asset sales in the previous yearEnergy130.0309.4(179.4)Oil&gas pricesLNG tradingMachinery&Infrastructure240.0171.9+68.1Asset recyclingChemicals6
124、0.070.9(10.9)Iron&Steel Products20.022.5(2.5)Lifestyle90.054.8+35.2One-time profit due to equity method investee becoming a subsidiaryInnovation&Corporate Development60.066.7(6.7)Others/Adjustmentsand Eliminations(10.0)(4.4)(5.6)Consolidated Total880.01,130.6(250.6)(Billions of Yen)Year endingMarch
125、31,2024Year endedMarch 31,2023Increase/(Decrease)DescriptionMineral&Metal Resources320.0436.7(116.7)Metallurgical coal and iron ore pricesDividend incomeEnergy230.0419.6(189.6)Oil and gas pricesLNG tradingMachinery&Infrastructure140.0182.9(42.9)Asset recyclingChemicals80.089.5(9.5)Iron&Steel Product
126、s10.018.0(8.0)Lifestyle50.031.1+18.9Recovery in coffee trading businessInnovation&Corporate Development40.046.6(6.6)Others/Adjustmentsand Eliminations0.0(18.9)+18.9Consolidated Total870.01,205.5(335.5)The forecast of Profit for the Year Attributable to Owners of the Parent by operating segment compa
127、red to the year ended March 31,2023 is as follows:The forecast for Core Operating Cash Flow by operating segment compared to the year ended March 31,2023 is as follows:-23-Impact on profit for the year attributable to owners of the parentfor the Year ending March 31,2024March 2024AssumptionMarch 202
128、3ResultCommodityCrude Oil/JCC-79103Consolidated Oil Price(*1)2.6 bn(US$1/bbl)8893U.S.Natural Gas(*2)1.4 bn(US$0.1/mmBtu)2.996.51(*3)Iron Ore(*4)2.7 bn(US$1/ton)(*5)116(*6)Metallurgical Coal0.3 bn(US$1/ton)(*5)352(*7)Copper(*8)0.7 bn(US$100/ton)8,6008,815(*9)Forex(*10)USD3.9 bn(1/USD)130.00136.00AUD2
129、.7 bn(1/AUD)85.0092.672)Key commodity prices and other parameters for the year ending March 31,2024The table below shows assumptions for key commodity prices and foreign exchange rates for the forecast for the year ending March 31,2024.The effects of movements on each commodity price and foreign exc
130、hange rates on profit for the year attributable to owners of the parent are included in the table.(*1)As the crude oil price affects our consolidated results with a time lag,the effect of the crude oil prices on consolidated results is estimated as the Consolidated Oil Price,which reflects this lag.
131、For the year ending March 2024,we have assumed that there is a 4-6 month lag for approx.35%,a 1-3 month lag for approx.30%,over one year of a lag for approx.30%,and no lag for approx.5%.The above sensitivities show annual impact of changes in the consolidated oil price.(*2)As Mitsui has very limited
132、 exposure to US.natural gas sold at Henry Hub(HH),the above sensitivities show annual impact of changes in the weighted average sale price.(*3)US.gas figures for the year ended March 2023 are the Henry Hub Natural Gas Futures average daily prompt-month closing prices traded on NYMEX during January t
133、o December 2022.(*4)The effect of dividend income from Vale has not been included.(*5)Iron ore and metallurgical coal price assumptions are not disclosed.(*6)Iron ore results figures for the year ended March 2023 are the daily average(reference price)spot indicated price(Fe 62%CFR North China)record
134、ed in several industry trade magazines from April 2022 to March 2023.(*7)Metallurgical coal results figures for the year ended March 2023 are the quarterly average prices of representative metallurgical coal brands in Japan(US$/MT).(*8)As the copper price affects our consolidated results with a 3-mo
135、nth time lag,the above sensitivities show the annual impact of US$100/ton change in averages of the LME monthly average cash settlement prices for the period March to December 2023.(*9)Copper results figures for the year ended March 2023 are the averages of the LME monthly average cash settlement pr
136、ices for the period January to December 2022.(*10)Impact of currency fluctuations on reported profit for the year of overseas subsidiaries and equity accounted investees denominated in their respective functional currencies and the impact of dividend received from major foreign investees.Depreciatio
137、n of the yen has the effect of increasing profit for the year through the conversion of profit(denominated in functional currencies)into yen.In the overseas subsidiaries and equity accounted investees where the sales contract is in USD,the impact of currency fluctuations between the USD and the func
138、tional currencies(AUD)and the impact of currency hedging are not included.-24-(3)Profit Distribution PolicyOur profit distribution policy is as follows:In order to increase corporate value and maximize shareholder value,we seek to maintain an optimal balance between meeting demand for capital in our
139、 core and growth areas through reinvestment of our retained earnings,and based on the level of stable cash generation directly provide returns to shareholders by paying out cash dividends.In addition to the above,regarding share repurchases which are done to improve capital efficiency amongst other
140、things,the amount and timing will be decided upon in a prompt and flexible manner taking into consideration the business environment.Such considerations include balance between share repurchases and growth investments,cash flow level after accounting for shareholder returns,interest-bearing debt lev
141、els,and return on equity.Share repurchases for the year ended March 31,2023,were 270 billion in total.For details,please refer to the releases on our website“Notification of Progress and End of Stock Repurchase”dated September 26,2022,and“Notification of Progress on Share Repurchase”dated April 3,20
142、23.The full-year dividend for the year ended March 31,2023,is planned to be 140 per share(an increase of 35 from the previous year,including the interim dividend of 65 per share).Taking into consideration Core Operating Cash Flow and Profit for the Year Attributable to Owners of the Parent announced
143、 today,as well as the stability and continuity of dividend payments,the full-year dividend for the year ending March 31,2024 is planned to be 150 per share(an increase of 10 from the previous year,including the interim dividend of 75).Furthermore,during the new Mid-term Management Plan,we will set a
144、 minimum dividend of 150 per share(an increase of 10 from the previous year,including the interim dividend of 75),and will introduce a progressive dividend that will have the dividend level maintained or increased.We have set a shareholder returns policy(dividends and share repurchases)of around 37%
145、of Core Operating Cash Flow on a three-year cumulative basis for the new Medium-term Management Plan.3.Basic Approach on Adoption of Accounting StandardsInternational Financial Reporting Standards was adopted on our annual securities report under the Financial Instruments and Exchange Act for the ye
146、ar ended March 31,2014 for the purpose of improving international comparability of financial information as well as enhancement and efficiency of our financial reporting.-25-4.Other InformationNotice:This flash report contains forward-looking statements about Mitsui and its consolidated subsidiaries
147、.These forward-looking statements are based on Mitsuis 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 Mitsuis actual consolidat
148、ed 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,uncertai
149、nties and other factors include,among others,(1)business investment risks,(2)country risks,(3)risks regarding climate changes,(4)commodity market risks,(5)foreign currency risks,(6)stock price risks of listed stock Mitsui and its subsidiaries hold,(7)credit risks,(8)risks regarding fund procurement,
150、(9)operational risks,(10)risks regarding employees compliance with laws,regulations,and internal policies,(11)risks regarding information systems and information securities,(12)risks relating to natural disasters,terrorism,violent groups and infectious diseases.For further information on the above,p
151、lease refer to Mitsuis Annual Securities Report.Forward-looking statements may be included in Mitsuis Annual Securities Report and Quarterly Securities Reports or in its other disclosure documents,press releases or website disclosures.Mitsui undertakes no obligation to publicly update or revise any
152、forward-looking statements.-26-(Millions of Yen)AssetsMarch 31,2023March 31,2022Current Assets:Cash and cash equivalents1,390,1301,127,868Trade and other receivables2,191,1812,303,140Other financial assets772,984997,862Inventories940,543949,663Advance payments to suppliers226,692183,370Other current
153、 assets153,303154,780Total current assets5,674,8335,716,683Non-current Assets:Investments accounted for using the equity method3,929,6363,387,371Other investments2,134,1032,347,414Trade and other receivables320,040319,977Other financial assets208,021167,845Property,plant and equipment2,300,6072,190,
154、902Investment property282,497318,570Intangible assets277,316253,039Deferred tax assets105,197100,743Other non-current assets148,666120,746Total non-current assets9,706,0839,206,607Total15,380,91614,923,2905.Consolidated Financial Statements(1)Consolidated Statements of Financial Position-27-(Million
155、s of Yen)Liabilities and EquityMarch 31,2023March 31,2022Current Liabilities:Short-term debt432,233281,831Current portion of long-term debt810,999410,257Trade and other payables1,510,3911,739,149Other financial liabilities621,9791,003,156Income tax payables49,33568,456Advances from customers234,9462
156、02,074Provisions58,95248,589Other current liabilities47,80255,114Total current liabilities3,766,6373,808,626Non-current Liabilities:Long-term debt,less current portion3,797,3284,185,375Other financial liabilities223,381147,031Retirement benefit liabilities36,99838,045Provisions310,513266,161Deferred
157、 tax liabilities648,263653,979Other non-current liabilities32,64828,657Total non-current liabilities5,049,1315,319,248Total liabilities8,815,7689,127,874Equity:Common stock342,560342,384Capital surplus381,869376,516Retained earnings4,840,5104,165,962Other components of equity868,963827,441Treasury s
158、tock(66,152)(107,098)Total equity attributable to owners of the parent6,367,7505,605,205Non-controlling interests197,398190,211Total equity6,565,1485,795,416Total15,380,91614,923,290-28-(Millions of Yen)Year endedMarch 31,2023Year endedMarch 31,2022Revenue:14,306,40211,757,559Cost:(12,910,174)(10,61
159、6,188)Gross Profit1,396,2281,141,371Other Income(Expenses):Selling,general and administrative expenses(702,809)(596,311)Gain(loss)on securities and other investments-net59,5248,705Impairment reversal(loss)of fixed assets-net(29,975)(19,117)Gain(loss)on disposal or sales of fixed assets-net19,43614,4
160、80Other income(expense)-net9,24814,909Total other income(expenses)(644,576)(577,334)Finance Income(Costs):Interest income47,75719,999Dividend income154,942196,505Interest expense(114,582)(47,324)Total finance income(costs)88,117169,180Share of Profit(Loss)of Investments Accounted for Using the Equit
161、y Method555,526431,263Profit before Income Taxes1,395,2951,164,480Income Taxes(240,668)(226,810)Profit for the Year1,154,627937,670Profit for the Year Attributable to:Owners of the parent1,130,630914,722Non-controlling interests23,99722,948(2)Consolidated Statements of Income and Comprehensive Incom
162、eConsolidated Statements of Income-29-(Millions of Yen)Year endedMarch 31,2023Year endedMarch 31,2022Profit for the Year1,154,627937,670Other Comprehensive Income:Items that will not be reclassified to profit or loss:Financial assets measured at FVTOCI(238,455)163,811Remeasurements of defined benefi
163、t pension plans9,34318,946Share of other comprehensive income of investments accounted for using the equity method(12,811)(19,631)Income tax relating to items not reclassified45,527(55,126)Items that may be reclassified subsequently to profit or loss:Foreign currency translation adjustments(22,865)1
164、03,754Cash flow hedges56,921(69,905)Share of other comprehensive income of investments accounted for using the equity method276,047338,093Income tax relating to items that may be reclassified(17,444)(6,624)Total other comprehensive income96,263473,318Comprehensive Income for the Year1,250,8901,410,9
165、88Comprehensive Income for the Year Attributable to:Owners of the parent1,224,5881,370,647Non-controlling interests26,30240,341Consolidated Statements of Comprehensive Income-30-(Millions of Yen)Attributable to owners of the parentNon-controlling InterestsTotal EquityCommon StockCapital SurplusRetai
166、ned EarningsOther Components of EquityTreasury StockTotalBalance as at April 1,2021 342,080 396,238 3,547,789373,786(89,473)4,570,420 252,467 4,822,887Profit for the year914,722914,72222,948937,670Other comprehensive income for the year455,925455,92517,393473,318Comprehensive income for the year914,
167、722455,9251,370,64740,3411,410,988Transaction with owners:Dividends paid to the owners of the parent(148,206)(148,206)(148,206)Dividends paid to non-controlling interest shareholders(26,260)(26,260)Acquisition of treasury stock(174,918)(174,918)(174,918)Sales of treasury stock(234)(336)57111Cancella
168、tion of treasury stock(156,722)156,722-Compensation costs related to share-based payment3041,8822,1862,186Equity transactions with non-controlling interest shareholders(21,370)6,445(14,925)(76,337)(91,262)Transfer to retained earnings8,715(8,715)-Balance as at March 31,2022 342,384 376,516 4,165,962
169、827,441(107,098)5,605,205 190,211 5,795,416Profit for the year1,130,6301,130,63023,9971,154,627Other comprehensive income for the year93,95893,9582,30596,263Comprehensive income for the year1,130,63093,9581,224,58826,3021,250,890Transaction with owners:Dividends paid to the owners of the parent(198,
170、082)(198,082)(198,082)Dividends paid to non-controlling interest shareholders(22,380)(22,380)Acquisition of treasury stock(270,257)(270,257)(270,257)Sales of treasury stock(252)(284)53711Cancellation of treasury stock(310,666)310,666-Compensation costs related to share-based payment1763,9064,0824,08
171、2Equity transactions with non-controlling interest shareholders1,6995142,2133,2655,478Transfer to retained earnings52,950(52,950)-Balance as at March 31,2023 342,560 381,869 4,840,510868,963(66,152)6,367,750 197,398 6,565,148(3)Consolidated Statements of Changes in Equity-31-(Millions of Yen)Year en
172、dedMarch 31,2023Year endedMarch 31,2022Operating Activities:Profit for the year1,154,627937,670Adjustments to reconcile profit for the year to cash flowsfrom operating activities:Depreciation and amortization272,689296,396Change in retirement benefit liabilities(11,708)6,689Loss allowance18,85720,23
173、8(Gain)loss on securities and other investments-net(59,524)(8,705)Impairment(reversal)loss of fixed assets-net29,97519,117(Gain)loss on disposal or sales of fixed assets-net(19,436)(14,480)Interest income,dividend income and interest expense(123,867)(199,875)Income taxes240,668226,810Share of(profit
174、)loss of investments accounted for using the equity method(555,526)(431,263)Valuation(gain)loss related to contingent considerations and others(2,137)(4,624)Changes in operating assets and liabilities:Change in trade and other receivables216,139(416,102)Change in inventories53,699(291,352)Change in
175、trade and other payables(295,922)369,080Other-net(197,336)(69,024)Interest received84,25050,824Interest paid(96,668)(49,278)Dividends received574,208554,764Income taxes paid(235,451)(189,989)Cash flows from operating activities1,047,537806,896Investing Activities:Net change in time deposits37,048794
176、Net change in investments in equity accounted investees(103,428)(27,067)Net change in other investments33,866(43,761)Net change in loan receivables(4,186)50,005Net change in property,plant and equipment(190,043)(156,636)Net change in investment property48,402(4,526)Cash flows from investing activiti
177、es(178,341)(181,191)Financing Activities:Net change in short-term debt168,678(82,522)Net change in long-term debt(217,647)(54,976)Repayments of lease liabilities(65,454)(55,630)Purchases and sales of treasury stock(270,246)(174,915)Dividends paid(198,082)(148,206)Transactions with non-controlling in
178、terest shareholders(51,934)(98,076)Cash flows from financing activities(634,685)(614,325)Effect of Exchange Rate Changes on Cash and Cash Equivalents27,75153,338Change in Cash and Cash Equivalents262,26264,718Cash and Cash Equivalents at Beginning of Year1,127,8681,063,150Cash and Cash Equivalents a
179、t End of Year1,390,1301,127,868(4)Consolidated Statements of Cash Flows-32-“Interest income,dividend income and interest expense”,“Interest received”,“Interest paid”and“Dividends received”of Consolidated Statements of Cash Flows include not only interest income,dividend income and interest expense t
180、hat are included in“Finance Income(Costs)”of Consolidated Statements of Income,but also interest income,dividend income,interest expense that are included in Revenue and Cost respectively and cash flows related with them.(5)Assumption for Going Concern:None1)Overseas2102)Japan871)Overseas1712)Japan4
181、5(6)Basis of Consolidated Financial StatementsScope of subsidiaries and equity accounted investees Subsidiaries Equity accounted investees(associated companies and joint ventures)A total of 477 subsidiaries and equity accounted investees are excluded from the above.These include companies which are
182、sub-consolidated or accounted for under the equity method by subsidiaries other than trading subsidiaries.(7)Changes in Accounting EstimatesThe significant changes in accounting estimates in the Consolidated Financial Statements for the year endedMarch 31,2023 are as follows.Decrease of the fair val
183、ue related to Russian LNG businessChanges in accounting estimates related to the Russian LNG business are described in(8)Note to Consolidated Financial Statements Impact of the Russia-Ukraine situation on the Russian LNG business.Impairment loss for the passenger railway business in BrazilAn impairm
184、ent loss of 15,080 million in the Machinery&Infrastructure Segment engaged in the passenger railway business in Brazil was recorded in“Impairment reversal(loss)of fixed assets net”in the Consolidated Statements of Income by reducing the carrying amount of intangible assets to the recoverable amount
185、of 41,264 million.The impairment loss was mainly related to a decrease in revenue and an increase in the discount rate.The recoverable amount above represented the value in use.The discount rate used to calculate the value in use is deemed to reflect the market average profit margin and the risks in
186、herent to the cash-generating unit.-33-(Millions of Yen)Mineral&Metal ResourcesEnergyMachinery&InfrastructureChemicalsIron&Steel ProductsLifestyleInnovation&Corporate DevelopmentTotalOthers/Adjustments and EliminationsConsolidated TotalRevenue2,220,3163,517,0771,115,1923,160,663726,1803,306,954259,4
187、8914,305,87153114,306,402Gross Profit355,820316,446199,900209,29840,699153,736112,5911,388,4907,7381,396,228Share of Profit(Loss)of Investments Accounted for Using the Equity Method127,550108,476197,31327,36824,73550,71218,931555,085441555,526Profit for the Year Attributable to Owners of the Parent4
188、38,785309,382171,90870,94522,48454,84966,6771,135,030(4,400)1,130,630Core Operating Cash Flow436,661419,583182,90189,53117,99531,09946,5881,224,358(18,855)1,205,503Total Assets at March 31,20233,062,8363,009,4723,216,7941,773,664776,5312,504,0781,642,45915,985,834(604,918)15,380,916(Millions of Yen)
189、Mineral&Metal ResourcesEnergyMachinery&InfrastructureChemicalsIron&Steel ProductsLifestyleInnovation&Corporate DevelopmentTotalOthers/Adjustments and EliminationsConsolidated TotalRevenue1,900,6532,597,392856,6032,861,701615,0762,700,478223,66511,755,5681,99111,757,559Gross Profit392,469145,414142,9
190、31182,98435,492142,96597,7431,139,9981,3731,141,371Share of Profit(Loss)of Investments Accounted for Using the Equity Method145,31232,347146,02920,71426,02041,08719,745431,2549431,263Profit for the Year Attributable to Owners of the Parent497,579114,017120,80868,94126,88961,49857,591947,323(32,601)9
191、14,722Core Operating Cash Flow552,789280,178143,97493,76412,41635,16146,5911,164,873(6,209)1,158,664Total Assets at March 31,20223,180,1972,960,4122,684,4781,692,949691,6302,428,5731,729,00615,367,245(443,955)14,923,290(8)Notes to Consolidated Financial Statements Segment InformationYear ended March
192、 31,2023(from April 1,2022 to March 31,2023)Year ended March 31,2022(from April 1,2021 to March 31,2022)Notes:1.“Others/Adjustments and Eliminations”includes of the Corporate Staff Unit which provides financing services and operations services to the companies and affiliated companies.Total assets o
193、f“Others/Adjustments and Eliminations”at March 31,2022 and March 31,2023 includes 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 amounting to 7,647,360 million and 8,215,000 million
194、,respectively.2.Transfers between reportable segments are made at cost plus a markup.3.Profit for the Year Attributable to Owners of the parent of“Others/Adjustments and Eliminations”includes income and expense items that are not allocated to specific reportable segments,and eliminations of interseg
195、ment transactions.4.Total assets of“Others/Adjustments and Eliminations”at March 31,2022 and March 31,2023 includes elimination of receivables and payables between segments amounting to 8,091,315 million and 8,819,918 million,respectively.5.Core Operating Cash Flow is calculated by deducting the tot
196、al 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 Consolidated Statements of Cash Flows.-34-Profit(numerator)Shares(denominator)Per
197、share amountMillions of YenIn ThousandsYenBasic Earnings per Share Attributable to Owners of the Parent:Profit for the Year Attributable to Owners of the Parent1,130,6301,566,367721.82Effect of Dilutive Securities:Adjustments of effect of:Dilutive securities of associated companies(10)Share-based re
198、muneration877Diluted Earnings per Share Attributable to Owners of the Parent:Profit for the Year Attributable to Owners of the Parent after effect of dilutive securities1,130,6201,567,244721.41Profit(numerator)Shares(denominator)Per share amountMillions of YenIn ThousandsYenBasic Earnings per Share
199、Attributable to Owners of the Parent:Profit for the Year Attributable to Owners of the Parent914,7221,628,744561.61Effect of Dilutive Securities:Adjustments of effect of:Dilutive securities of associated companies(1)Stock options667Diluted Earnings per Share Attributable to Owners of the Parent:Prof
200、it for the Year Attributable to Owners of the Parent after effect of dilutive securities914,7211,629,411561.38 Earnings per ShareThe following is a reconciliation of basic earnings per share attributable to owners of the parent to diluted earnings per share attributable to owners of the parent for t
201、he years ended March 31,2023 and 2022:Year ended March 31,2023(from April 1,2022 to March 31,2023)Year ended March 31,2022(from April 1,2021 to March 31,2022)-35-Subsequent EventsAcquisition of Additional Shares in Aim Services Co.,Ltd.On April 6,2023(the acquisition date),the Company acquired an ad
202、ditional 50%equity share(equivalent to 277 stocks)of AIM SERVICES CO.,LTD.(Aim),which is a major food contracting service company in Japan under the Lifestyle Segment,from Aramark,a U.S.based company.The Company already held 50%share and acquired remaining balance of 50%shares while aiming to accele
203、rate Aims growth by leveraging its comprehensive strengths.The acquisition price was USD 535 million(68,790 million),which was paid in cash and cash equivalents on hand.After the acquisition,Aim became a wholly owned subsidiary of the Company.Pursuant to the acquisition,Aim is reclassified from an e
204、quity-method investee to a wholly-owned subsidiary of the Company and the revaluation gain on the previously held equity interest of 50%shares is expected to be 43,449 million under“Gain on securities and other investments”in the Consolidated Statements of Income for the first quarter of the year en
205、ding March 31,2024.Additionally,the Company has begun the process of allocating purchase price to the assets acquired and liabilities assumed.However,this process is not completed and such allocation is yet to be finalized.Issuance of New Shares as Post-Delivery Restricted-Stock-Based RemunerationOn
206、 April 6,2023,the Board of Directors of the Company resolved to issue new shares as post-delivery restricted-stock-based remuneration under the remuneration system of tenure-linked restricted stock unit,and the payment of new shares was completed on April 28,2023.The details are as follows.(1)Class
207、and number of shares issued:Common stock of the Company,129,424 shares(2)Issue price :3,906 yen per share(3)Total value of issue :505,530,144 yen(4)Pay-in date :April 28,2023(5)Categories and numbers of persons eligible for allocations,numbers of shares allocated:Managing Officers 7 persons,113,759
208、shares (including retired Managing Officers 6 persons,98,559 shares)Directors 1 person,15,665 shares The Fire Incident of Intercontinental Terminals CompanyOn March 17,2019(US time)a fire began at the Deer Park tank terminal of Intercontinental Terminals Company(“ITC”),a wholly owned U.S.subsidiary
209、of Mitsui.The Deer Park tank terminal is located in the outskirts of Houston,Texas.The fire partially damaged tanks owned by ITC.ITC has resumed its operation after discussions with related authorities.Harris County Fire Marshals Office released its final report with respect to the fire incident on
210、December 6,2019(US time)and the report classified the fire as accidental,while not specifying the cause of the fire.The cause of the fire is still under investigation by other relevant authorities.The profit and loss related to this incident recognized in the year ended March 31,2022 and 2023,and th
211、e outstanding balance of related provision as of March 31,2023 are immaterial.There are multiple lawsuits that have been brought against ITC in relation to this incident.These lawsuits are at the early stages and the ultimate outcome of these lawsuits is not expected to have significant impact on ou
212、r consolidated financial position,operating results and cash flow.-36-Impact of the Security Situation in Northern Mozambique on LNG ProjectThe Company participates in the Mozambique LNG Project through Mitsui E&P Mozambique Area 1,its joint venture in the Energy Segment.In April 2021,all project pe
213、rsonnel evacuated the project site due to the deteriorating security situation in northern Mozambique where the project site is located,and April 26,2021,the project operator,TotalEnergies of France,announced that it had declared force majeure under the Joint Operating Agreement.Progress has been se
214、en in the restoration of order,stability and security in the region,and project partners are working with the government and relevant stakeholders for an early restart of the construction,while the exact restart date is still being reviewed.The Company does not expect a significant impact on our con
215、solidated financial position,operating results and cash flow at this stage.Impact of the Russia-Ukraine Situation on the Russian LNG businessThe Russian LNG business in which the Company,its subsidiary,and the equity accounted investee in the Energy Segment have invested,financed and guaranteed,is a
216、ffected by the Russia-Ukraine situation that has been ongoing since February 2022 and the resulting sanctions against Russia,etc.Based on discussions with each partner,the Company has evaluated its relevant assets and liabilities.In relation to the investment in Sakhalin II project that was held by
217、Mitsui Sakhalin Holdings,a subsidiary of the Company,all the rights and obligations of Sakhalin Energy Investment Company,an original operator of the project,have been transferred to Sakhalin Energy LLC(“SELLC”)established based on Russian Presidential Decree(No.416)dated June 30,2022 and Resolution
218、 of the Government of the Russian Federation dated August 2,2022(No.1369).Accordingly,we submitted to the Government of the Russian Federation the notice of consent to take the ownership of SELLC.The notice of consent was approved and MIT SEL Investment,a newly established subsidiary of the Company,
219、undertook ownership on September 2,2022.Consequently,we continue to invest in the Sakhalin II project before and after the aforementioned reorganization and it does not materially impact on the Consolidated Financial Statements.On the other hand,the situation as of March 31,2023 still remains uncert
220、ain as the final LLC members composition is not yet decided and the relevant LLC members agreement is not signed,etc.Under this situation,the fair value of our investment in the Sakhalin II project was measured using the income approach by expected present value technique and the probability-weighte
221、d average considering a scenario where the continuous dividend income is expected from SELLC and other scenarios.As a result,the fair value decreased by 125,970 million from the balance as of March 31,2022,and the valuation difference is recorded in“Financial assets measured at FVTOCI”in the Consoli
222、dated Statements of Comprehensive Income.The outstanding balances of“Other investments”in the Consolidated Statements of Financial Position related to this project as of March 31,2023 and 2022 were 98,505 million and 208,154 million,respectively.While the decision on the new LLC member has been ackn
223、owledged by Order of the Government of the Russian Federation dated April 11,2023(No.890),the Company has concluded there is no impact on the above fair value.The fair value may increase or decrease due to further changes in situation hereafter.In addition,the carrying amount of the investments in J
224、apan Arctic LNG,an equity accounted investee that invests in and finances the Arctic LNG 2 project,and the assets value held by Japan Arctic LNG were revaluated during the current period based on the rating of the Russian Federation,however the profit and loss and comprehensive income recognized in
225、the current period were immaterial.The outstanding balances of the investments and loans(*)as of March 31,2023 and 2022 were 15,759 million and 14,374 million,respectively.The balance of financial guarantees as contingent liabilities were 223,415 million and 182,160 million,respectively,and the prov
226、ision for loss on guarantees included in Other financial liabilities were 18,213 million and 18,097 million,respectively.These estimates may be affected by uncertain future developments in Russia and Ukraine,and any further changes in the credit rating of the Russian Federation.Also,any changes in t
227、he Companys policies regarding its Russian LNG business may have a significant impact on the amounts of related investments,loans and financial guarantees in the Consolidated Financial Statements for the next fiscal year.(*)Investments and loans are the sum of“Investments accounted for using the equity method”,and loans(net of loss allowance)included in“Trade and other receivables”in the Consolidated Statements of Financial Position.-37-