Improving Financial Soundness and Asset Efficiency Through Ongoing Asset Rotation

「Current year: gain on the partial sale of the interest in Sakura Internet, sale of the gas retailing business, etc.」

「Interim net income increased, due to higher defense-related and aircraft-related transactions and gains from the partial sale of the freight railcar leasing business, among other factors.」

「Current year: gain on the partial sale of the marine business, gain on changes in ownership interests from a public offering by an affiliate, gain on the sale of an overseas industrial park, etc.」

「At the end of the previous consolidated fiscal year, the subsidiary holding equity-method investments related to an Indonesian thermal coal mine included in the Metals, Resources and Recycling segment and the subsidiary related to a Canadian molybdenum mining business, among the assets classified as held for sale and the directly related liabilities, had completed their sales during the current interim consolidated fiscal period.」

「At the end of the previous consolidated fiscal year, the subsidiary related to the Peru solar power generation business included in the Infrastructure and Healthcare segment and the investment property related to the domestic rental apartment business included in the Retail and Consumer Services segment, among the assets classified as held for sale and the directly related liabilities, had completed their sales during the current nine-month consolidated period.」

「At the end of the previous consolidated fiscal year, the subsidiary related to the Peru solar power generation business included in the Infrastructure and Healthcare segment and the investment property related to the domestic rental apartment business included in the Retail and Consumer Services segment, among the assets classified as held for sale and the directly related liabilities, had completed their sales during the current nine-month consolidated period.」

「At the end of the previous consolidated fiscal year, the subsidiary related to the Peru solar power generation business included in the Infrastructure and Healthcare segment, among the assets classified as held for sale and the directly related liabilities, had completed its sale in October 2023. During the current six-month consolidated period, the principal assets newly classified as held for sale, together with the directly related liabilities, were those associated with a subsidiary holding investments related to a U.S. gas-fired power generation business included in the Infrastructure and Healthcare segment, and other investments related to a Spanish LNG receiving terminal business.」

「Although the company invested in a frozen tuna processing and sales company and an Australian energy-saving business during the current three-month consolidated period, cash generated from aircraft-related transactions and the sale of cross-held shares resulted in cash provided by investing activities of ¥2.4041 billion.」

「As performance remained firm during the year, basic operating cash flow amounted to ¥145.2 billion. In addition, proceeds from the sale of cross-held shares and investments through portfolio rotation and collections from aircraft-related transactions contributed to cash flow. Although the company also incurred expenditures for new investments and shareholder returns, basic cash flow was positive at ¥136.0 billion.」

「The principal assets newly classified as held for sale during the current nine-month consolidated period, together with the directly related liabilities, were those associated with subsidiaries included in the Infrastructure and Healthcare segment, equity-method investments held in the Metals, Resources and Recycling segment, and investment property held by subsidiaries included in the Retail and Consumer Services segment.」

「The principal assets newly classified as held for sale during the current six-month consolidated period were equity-method investments held in the Retail and Consumer Services segment and property, plant and equipment held by subsidiaries included in the Aviation, Transportation and Projects segment.」

「Quarterly net income increased by ¥5.380 billion year on year to ¥6.198 billion, mainly due to an increase in other income and expenses resulting from the partial sale of an overseas telecommunications tower company.」

「Basic cash flow was positive, supported by the accumulation of basic operating cash flow resulting from higher coal prices and other factors, as well as smooth progress in portfolio rotation through the sale of a nonferrous smelting company in Metals, Resources and Recycling and the sale of cross-held shares.」

「The principal assets newly classified as held for sale during the current nine-month consolidated period, together with the directly related liabilities, were those associated with subsidiaries of the industrial machinery business included in the Other segment and equity-method investments held in the Metals, Resources and Recycling segment.」

「The principal assets newly classified as held for sale during the current six-month consolidated period, together with the directly related liabilities, were those associated with subsidiaries included in the Retail and Consumer Services segment.」

「The principal assets newly classified as held for sale and directly related liabilities during the first quarter of the fiscal year related to a subsidiary engaged in the industrial machinery business included in the Other segment.」

「At the end of the third quarter of the fiscal year, investment property stood at ¥11,664 million, down ¥6,938 million from the end of the previous fiscal year. The primary reason was the sale of commercial facilities held by a subsidiary included in the Retail and Lifestyle Industries segment.」

「Cash flows from investing activities during the first six months of the fiscal year resulted in an outflow of ¥4,264 million, as proceeds from the sale of commercial facilities and the partial sale of a gas-fired power generation company were outweighed by expenditures including the acquisition of property, plant and equipment.」

「Profit before income taxes decreased by ¥15,559 million year on year to ¥2,574 million. Although selling, general and administrative expenses improved due mainly to lower property-related expenses and other income and expenses increased due partly to the partial sale of a gas-fired power generation company, these effects were outweighed by lower gross profit and lower equity in earnings of affiliates. During the first quarter of the fiscal year, commercial facilities held by a domestic subsidiary were transferred to assets held for sale.」

「In fiscal 2019, we also sold part of our interests in thermal coal.」

「Quarterly net income decreased by ¥127 million year on year to ¥4,692 million, despite higher other income and expenses from the sale of real estate, due mainly to lower gross profit.」

「Quarterly net income increased by ¥35 million year on year to ¥254 million, despite lower other income and expenses due mainly to the sale of an overseas solar power generation company in the previous corresponding period, as a result of factors including higher equity in earnings of affiliates.」

「Profit before income taxes increased by ¥13,387 million year on year to ¥74,225 million, due to higher gross profit and higher other income and expenses, including gains from the sale of an automotive-related company.」

「As all shares held by the company were transferred on 1 June 2018, Mitsubishi Motors Philippines Corporation, which had been an equity-method affiliate, was removed from the list of affiliated companies.」

「Profit before income taxes increased by ¥8,211 million year on year to ¥27,269 million, due to higher gross profit and higher other income and expenses, including gains from the sale of an automotive-related company.」

「The principal assets newly classified as held for sale and directly related liabilities during the first nine months of the fiscal year related to subsidiaries held in the Environmental and Industrial Infrastructure segment and equity-method investments held in the Food and Agribusiness segment.」

「Revenue decreased 0.7% year on year to ¥144,384 million, due mainly to the effects of the sale of domestic commercial facilities in the previous corresponding period.」

「Revenue decreased 5.3% year on year to ¥72,314 million, due mainly to the effects of the sale of domestic commercial facilities in the previous corresponding period.」

「Quarterly net income increased by ¥701 million year on year to ¥3,714 million, due mainly to the sale of real estate held for sale in the domestic shopping center business.」

「As all shares held by the company were transferred on 30 September 2016, Sojitz Cosmetics Co., Ltd., which had been a consolidated subsidiary, was removed from the list of affiliated companies. Quarterly net income increased by ¥469 million year on year to ¥3,353 million, due mainly to the sale of real estate held for sale in the domestic shopping center business.」

「While maintaining financial soundness and improving asset efficiency through ongoing asset replacement, we will also actively build up high-quality assets.」