MITSUI SOKO : Consolidated Financial Results for the Nine Months Ended December 31, 2022

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.

February 7, 2023

Consolidated Financial Results

for the Nine Months Ended December 31, 2022

(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:	Hirobumi Matsui, Executive Officer of Finance and Accounting
Telephone:	[phone]

Scheduled date to file quarterly securities report:	February 8, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for securities analysts and
	institutional investors)

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

1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Operating revenue	Operating profit	Ordinary profit	Profit attributable to
	owners of parent
Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
December 31, 2022	234,317	8.1	21,338	17.6	22,115	21.3	13,191	27.9
December 31, 2021	216,769	16.0	18,137	34.4	18,227	35.1	10,309	30.1
Note: Comprehensive income	For the nine months ended December 31, 2022: ¥17,073 million	[25.4%]
		For the nine months ended December 31, 2021: ¥13,612 million	[5.6%]
	Basic earnings per	Diluted earnings per
		share		share
Nine months ended			Yen		Yen
December 31, 2022		530.57		-
December 31, 2021		415.12		-

(2) Consolidated financial position

		Total assets	Net assets
As of		Millions of yen	Millions of yen
December 31, 2022		259,912	99,823
March 31, 2022		258,297	88,631
Reference: Equity capital
As of December 31, 2022:	¥89,743 million
As of March 31, 2022:	¥79,458 million

Equity ratio

%

34.5

30.8

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end		Third quarter-end	Fiscal year-end	Total
	Yen	Yen		Yen	Yen	Yen
Fiscal year ended	-	35.00		-	94.00	129.00
March 31, 2022
Fiscal year ending	-	72.00		-
March 31, 2023
Fiscal year ending					115.00	187.00
March 31, 2023
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: Yes

As for the revision to the dividends forecast, please refer to "(3) Explanation of earnings forecasts and other forward- looking statements," under "1. Qualitative information on quarterly financial results," on page 4 of the attached materials.

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

							Profit attributable to	Basic
	Operating revenue	Operating profit	Ordinary profit	earnings per
	owners of parent
							share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Fiscal year ending	305,500	1.5	26,000	0.2	26,400	3.3	15,500	6.9	623.36
March 31, 2023
Note: Revisions to the earnings forecasts most recently announced: Yes

* 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. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 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
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of December 31, 2022

As of March 31, 2022

24,921,802 shares

24,883,002 shares

(ii) Number of treasury shares at the end of the period

As of December 31, 2022

As of March 31, 2022

46,770 shares

46,684 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Nine months ended December 31, 2022

Nine months ended December 31, 2021

24,862,167 shares

24,836,326 shares

• Quarterly financial results reports are exempt from quarterly review 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 "(3) Explanation of earnings forecasts and other forward-looking statements," under "1. Qualitative information on quarterly financial results," on page 4 of the attached materials.

	MITSUI-SOKO HOLDINGS Co., Ltd. (9302)
Attached Materials
	Index
1. Qualitative information on quarterly financial results	2
(1)	Explanation of operating results	2
(2)	Explanation of financial position	3
(3)	Explanation of earnings forecasts and other forward-looking statements	4
2. Quarterly consolidated financial statements and significant notes thereto	7
(1)	Quarterly consolidated balance sheet	7
(2)	Quarterly consolidated statement of income and quarterly consolidated statement of
	comprehensive income	9
	Quarterly consolidated statement of income
	[For the first nine months]	9
	Quarterly consolidated statement of comprehensive income
	[For the first nine months]	10
(3)	Quarterly consolidated statement of cash flows	11
(4)	Notes to quarterly consolidated financial statements	12
	Notes on premise of going concern	12
	Notes when there are significant changes in amounts of shareholders' equity	12
	Segment information, etc	12
3. Supplemental information	14

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

1. Qualitative information on quarterly financial results

1. Explanation of operating results
   The overview of the financial results for the nine months ended December 31, 2022 is as follows.

				(Millions of yen)
	Nine months	Nine months	Year-on-year
Consolidated total amount	ended December	ended December	Changes
comparison
	31, 2021	31, 2022
Operating revenue	216,769	234,317	17,547	8.1%
Operating profit	18,137	21,338	3,200	17.6%
Ordinary profit	18,227	22,115	3,887	21.3%
Profit attributable to owners of parent	10,309	13,191	2,881	27.9%

• For operating revenue and all levels of profit, revenue and profit increased year on year.
• The resumption of economic and social activities continues amid the lingering effects of global supply chain disruptions. 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.

Operating results by segment are as follows.

(a)	Logistics Business
					(Millions of yen)
		Nine months	Nine months	Year-on-year	Changes
	Logistics Business	ended December	ended December
	comparison
		31, 2021	31, 2022
Operating revenue	210,243	227,785	17,542	8.3%
Operating profit	16,381	19,622	3,240	19.8%

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, and rising prices amid the depreciation of the yen have led to constraints on businesses in the procurement of raw materials and components.
• 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 continue at levels exceeding those prior to the COVID-19 pandemic, but are currently showing signs of abating.

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)
  • Proposed logistics solutions to reduce environmental impact

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