Mitsui E&S : Consolidated Financial Results for the Three Months Ended June 30, 2022

1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
(1) Consolidated Operating Results (cumulative)

(2) Consolidated Financial Position

2. Dividends

3. Forecast of Financial Results (from April 1, 2022 to March 31, 2023)

Reference: Dividends for Preferred Stock
Dividend per share for Class-A Preferred stock is as follows:

Application of International Financial Reporting Standards to the Affiliate using Equity Method
MODEC, Inc., the affiliate accounted for using equity method, used to apply Generally Accepted Accounting Principles in Japan and now has adopted International Financial Reporting Standards (IFRS) from FY2021. This adoption was made for the purposes of 1) better comparability of financial information and 2) strengthening management control by unifying the accounting standards across MODEC group, as MODEC group operates business globally. This change of accounting policy is applied retrospectively, and quarterly consolidated financial results for the prior period has been restated. Because of the partial sale of MODEC shares, they were excluded from the scope of consolidation and became affiliates accounted for using equity method on the end of 3rd quarter of FY2021.
This change has no effect on Quarterly Consolidated Statements of Operations, but reflecting the cumulative effects to the beginning balance of net assets as of April 1, 2021, beginning balances for the previous fiscal year of Retained earnings, Unrealized gains (losses) on hedging derivatives and Non-controlling interests have decreased by 2,861 million yen, 591 million yen and 4,069 million yen, respectively, and beginning balance for the previous fiscal year of Foreign currency translation adjustments has increased by 101 million yen, comparing before and after retrospective restatement.

Overview of Reportable Segment
Reportable Segment is classified into 4 segments: Ship, Ocean Development, Machinery and Engineering. Main products and services of each Reportable Segment are as follows

Information about Sales, Segment Income and Loss and Other Items for each Reportable Segment
Reportable Segment information for the three months ended June 30, 2021 and 2022 were as follows:

Change in Calculation Method used for Segment Income and Loss for Reportable Segmen
Segment income (loss) used to represent “Operating income (loss)” in Consolidated Statements of Operations. Regarding “Ocean Development,” however, segment income (loss) has changed to represent “Share of profit (loss) of entities accounted for using equity method” since this 1st quarter of FY2022, instead of “Operating income (loss).” This is because the management indicator has been changed after MODEC, Inc., which consists of “Ocean Development,” had been excluded from the scope of consolidation and become affiliates accounted for using equity method since the end of 3rd quarter of FY2021.
Taking the said change into account, segment income for “Ocean Development” for the prior period would become 2,615 million yen.

Full Report

Source: MITSUI E&S