MITSUI SOKO : Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

June 23, 2023

June 5, 2023

June 23, 2023 Yes

Yes (for securities analysts and institutional investors)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 10, 2023

	Consolidated Financial Results
	for the Fiscal Year Ended March 31, 2023
	(Under Japanese GAAP)
Company name:	MITSUI-SOKO HOLDINGS Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	9302
URL:	https://www.mitsui-soko.com/en/
Representative:	Hirobumi Koga, Representative Director, President & Group CEO
Inquiries:	Takeshi Matsuki, General Manager of Finance and Accounting Division
Telephone:	[phone]

Scheduled date of ordinary general meeting of shareholders:

Scheduled date to commence dividend payments:

Scheduled date to file annual securities report:

Preparation of supplementary material on financial results:

Holding of financial results briefing:

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results				(Percentages indicate year-on-year changes.)
	Operating revenue	Operating profit	Ordinary profit	Profit attributable to
	owners of parent
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2023	300,836		(0.1)	25,961	0.1	26,533	3.8	15,617	7.7
March 31, 2022	301,022		18.7	25,939	46.9	25,553	48.2	14,503	25.6

Note: Comprehensive income	For the fiscal year ended March 31, 2023:		¥21,321 million	((5.1)%)
		For the fiscal year ended March 31, 2022:		¥22,467 million	(43.7%)
	Basic earnings per	Diluted earnings			Ratio of ordinary		Ratio of operating
	Return on equity	profit to total		profit to operating
	share		per share
				assets		revenue
Fiscal year ended		Yen	Yen		%	%		%
March 31, 2023		628.08	-		18.1	10.3		8.6
March 31, 2022		583.98	-		20.4	10.3		8.6
Reference: Share of profit (loss) of entities accounted for using equity method
		For the fiscal year ended March 31, 2023:		¥366 million
		For the fiscal year ended March 31, 2022:		¥271 million

(2) Consolidated financial position

		Total assets	Net assets
As of		Millions of yen	Millions of yen
March 31, 2023		258,679	104,078
March 31, 2022		258,297	88,631
Reference: Equity capital
As of March 31, 2023:	¥93,285 million
As of March 31, 2022:	¥79,458 million
(3) Consolidated cash flows
		Cash flows from	Cash flows from
		operating activities	investing activities
Fiscal year ended		Millions of yen	Millions of yen
March 31, 2023		32,340	(6,326)
March 31, 2022		23,123	(7,049)

Equity ratio

%

36.1

30.8

Cash flows from

financing activities

Millions of yen

(16,053)

(17,218)

Net assets per share

Yen

3,750.18

3,199.28

Cash and cash

equivalents at end of

period

Millions of yen

33,417

22,822

2. Cash dividends

		Annual dividends per share
	First quarter-	Second	Third	Fiscal year-
	end	quarter-end	quarter-end	end
	Yen	Yen	Yen	Yen
Fiscal year
ended	-	35.00	-	94.00
March 31, 2022
Fiscal year
ended	-	72.00	-	117.00
March 31, 2023
Fiscal year
ending	-	67.00	-	67.00
March 31, 2024
(Forecast)

Total

Yen

129.00

189.00

134.00

		Payout	Ratio of
	Total	dividends
	ratio	to net
	dividends
	(Consoli-	assets
	(Total)
	dated)	(Consoli-
			dated)
	Millions of	%	%
	yen
3,203	22.1	4.5
4,701	30.1	5.4
		30.3

• The amount of year-end dividend per share for the fiscal year ended March 31, 2023 has been changed from ¥115 to ¥117.

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

	Operating revenue	Operating profit	Ordinary profit	Profit attributable to	Basic
	earnings per
	owners of parent
							share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Six months ending	140,000	(11.0)	10,000	(26.9)	9,700	(32.9)	5,500	(40.0)	221.19
September 30, 2023
Fiscal year ending	280,000	(6.9)	20,000	(23.0)	19,200	(27.6)	11,000	(29.6)	442.38
March 31, 2024

4. Non-consolidated earnings forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

										Basic
	Operating revenue	Operating profit	Ordinary profit	Profit		earnings per
										share
	Millions of	%	Millions of	%	Millions of	%	Millions of		%	Yen
Six months ending	yen		yen		yen		yen
16,700	35.2	8,500	60.0	8,300	57.3	8,300		56.8	333.80
September 30, 2023
Fiscal year ending	25,800	19.7	9,200	34.9	8,500	28.9	8,500		19.4	341.84
March 31, 2024

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
   Newly included: -
   Excluded: -
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2023	24,921,802 shares
As of March 31, 2022	24,883,002 shares

b. Number of treasury shares at the end of the period

As of March 31, 2023	46,808 shares
As of March 31, 2022	46,684 shares

c. Average number of shares outstanding during the period

Fiscal year ended March 31, 2023	24,865,377 shares
Fiscal year ended March 31, 2022	24,836,324 shares

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  Figures for the forecasts, outlooks, and targets described in this report that are not historical facts are calculated based on the currently available information and uncertain factors that may have an effect on future performance. The actual results may differ from the forecasts. Regarding earnings forecasts, please refer to "b. Outlook for the next fiscal year" of "(1) Analysis of operating results" under "1. Overview of operating results and others" on page 2.

		MITSUI-SOKO HOLDINGS Co., Ltd. (9302)
Attached Materials
		Index
1. Overview of operating results and others	2
	(1)	Analysis of operating results	2
	(2)	Analysis of financial position	4
	(3)	Basic policy on profit distribution and cash dividends for the fiscal year under review and the
		next fiscal year	5
2. Status of the corporate group	6
3.	Management policy	7
4. Basic concept regarding selection of accounting standards	8
5. Consolidated financial statements and significant notes thereto	9
	(1)	Consolidated balance sheet	9
	(2)	Consolidated statement of income and consolidated statement of comprehensive income	11
		Consolidated statement of income	11
		Consolidated statement of comprehensive income	13
	(3)	Consolidated statement of changes in equity	14
	(4)	Consolidated statement of cash flows	16
	(5)	Notes to consolidated financial statements	18
		Notes on premise of going concern	18
		Significant accounting policies for preparation of consolidated financial statements	18
		Changes in presentation	21
		Consolidated balance sheet	22
		Consolidated statement of comprehensive income	23
		Consolidated statement of changes in equity	23
		Consolidated statement of cash flows	25
		Securities	25
		Real estate for lease, etc	26
		Segment information, etc	26
		Per share information	30
		Significant subsequent events	30
6.	Non-consolidated financial statements	31
	(1)	Non-consolidated balance sheet	31
	(2)	Non-consolidated statement of income	33
	(3)	Non-consolidated statement of changes in equity	34
7.	Others	36
	Reference materials on the financial results for the fiscal year ended March 31, 2023	36

- 1 -

MITSUI-SOKO HOLDINGS Co., Ltd. (9302)

1. Overview of operating results and others

1. Analysis of operating results

a. Overview of the fiscal year under review

1. Overall summary

				(Millions of yen)
Consolidated total amount	Fiscal year ended	Fiscal year ended	Year-on-year	Changes
March 31, 2022	March 31, 2023	comparison
Operating revenue	301,022	300,836	(185)	(0.1)%
Operating profit	25,939	25,961	22	0.1%
Ordinary profit	25,553	26,533	980	3.8%
Profit attributable to owners	14,503	15,617	1,113	7.7%
of parent

1. • Operating profit, ordinary profit, and profit all increased year-on-year, reaching record highs for the third consecutive year.
   • With the effects of disruption to global supply chains subsiding, the resumption of economic and social activities continues. In this environment, the Group accurately grasped the rapidly changing needs of customers, and made proposals for alternate transportation routes and to increase efficiency in logistics. As a result, the Group acquired new customers, expanded the range of business contracts with existing customers and increased the handling volume in the freight forwarding business.
2. Segment overview

1. Logistics Business

				(Millions of yen)
Logistics Business	Fiscal year ended	Fiscal year ended	Year-on-year	Changes
March 31, 2022	March 31, 2023	comparison
Operating revenue	292,213	292,022	(190)	(0.1)%
Operating profit	23,734	23,923	188	0.8%

Business environment: The business environment surrounding the Company is as follows.

• The prolonging of the situation in Ukraine, global labor market tightness, persistent high energy procurement costs, as well as tight global monetary policy in response to rising prices, have led to constraints on businesses in the procurement of raw materials and components, and capital investment.
• However, in conjunction with the resumption of economic and social activities, the gradual recovery trend in production activities of businesses continues, albeit with some ups and downs.
• In addition, the shortage of marine containers and other disruptions in the marine shipping market, and constraints on available cargo space accompanying the decrease in the number of air passenger flights are beginning to ease. The shortages of sea and air transport space and the surge in freight costs are now coming to an end.

Operating situation: The situation regarding the operating activities of the Company is as follows.

• Upon experiencing supply chain disruptions, the Group accurately grasped the rapidly changing needs of customers, flexibly secured transport space and increased the handling volume in the freight forwarding business.
• As a result of making the following proposals to customers, the Group acquired new customers, expanded the range of business contracts with existing customers and increased the handling volume in the overseas logistics business and the freight forwarding business.
  - Proposed alternate transportation routes that contribute to customers' business continuity plans (BCPs)

- 2 -