Mitsubishi : Flash Report

FINANCIAL RESULTS FOR

THE THREE MONTHS ENDED JUNE 2021

Mitsubishi Corporation

2-3-1 Marunouchi, Chiyoda-ku, Tokyo, JAPAN 100-8086

https://www.mitsubishicorp.com/

August 3, 2021

Mitsubishi Corporation

FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2021

(Based on IFRS) (Consolidated)

1. Consolidated operating results for the three months ended June 30, 2021

(1) Revenues and income

Note:

Figures less than one million yen are rounded.

%: change from the same period of the previous year

											Profit for the period
		Revenues		Profit before tax		Profit for the period	attributable to		Comprehensive income
											owners of the Parent
For the three months ended	Millions of Yen		%	Millions of Yen		%	Millions of Yen		%	Millions of Yen		%	Millions of Yen	%
	June 30, 2021	3,793,730		42.2	247,775		342.7	198,847		394.4	187,572		411.6	267,443	137.6
	June 30, 2020	2,667,435		(32.3)	55,975		(74.9)	40,221		(76.9)	36,661		(77.3)	112,583	529.1
		Profit for the period	Profit for the period
		attributable to		attributable to
		owners of the Parent	owners of the Parent
		per share (basic)	per share (diluted)
For the three months ended			Yen			Yen
	June 30, 2021			127.07	126.71
	June 30, 2020			24.79			24.74
Note:	Profit for the period attributable to owners of the Parent per share (basic) and Profit for the period attributable to owners of the Parent per share (diluted) are calculated based on Profit for the
	period attributable to owners of the Parent.
(2) Financial position
								Equity attributable to	Ratio of equity attributable to
		Total assets		Total equity		owners of the Parent to total
				owners of the Parent
								assets
As of	Millions of Yen	Millions of Yen	Millions of Yen			%
	June 30, 2021	19,145,128	6,681,074		5,771,269			30.1
	March 31, 2021	18,634,971	6,538,390		5,613,647			30.1
2. Dividends
								Cash dividend per share (Yen)
(Record date)	1Q end		2Q end		3Q end			4Q end		Annual
	Fiscal Year			－						－
	ended March 31, 2021					67.00					67.00		134.00
	Fiscal Year			－
	ending March 31, 2022
	Fiscal Year						67.00			－			67.00		134.00
ending March 31, 2022 (Forecast)
Note:	Change from the latest released dividend forecasts: No

3. Consolidated forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)

				Note:
				%: change from the previous year.
	Profit attributable to		Profit attributable to owners of
	owners of the Parent		the Parent per share
For the year ending	Millions of Yen		%	Yen
March 31, 2022	380,000		120.2	257.43

Note: Change from the latest released earnings forecasts: No

4. Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries causing changes in scope of consolidation): None New companies:－
   Excluded companies:－
2. Changes in accounting policies and accounting estimates

-1- Changes in accounting policies required by IFRS : None

-2- Changes in accounting policies other than -1- : None

-3- Changes in accounting estimates : None

Please refer to page 12, "3. Changes in Accounting Policies and Accounting Estimates."

(3) Number of shares issued (Common stock)
-1- Number of shares issued at quarterly-end (including treasury stock)	(June 30, 2021)	1,485,723,351	(March 31, 2021)	1,485,723,351
-2- Number of treasury stock at quarterly-end	(June 30, 2021)	9,528,670	(March 31,	2021)	9,618,263
-3- Average number of shares during each of the three months ended June 30, 2021 and 2020	(June 30, 2021)	1,476,134,019	(June 30,	2020)	1,478,725,488

Disclosure Regarding Quarterly Review Procedures

This earnings release is not subject to independent Auditor's review procedures.

Forward-looking Statements

Earnings forecasts and other forward-looking statements in this release are based on data currently available to management and certain assumptions that management believes are reasonable. The achievement of said forecasts cannot be promised. Actual results may therefore differ materially from these statements for various reasons. For cautionary notes concerning assumptions for earnings forecasts, please refer to "1. (4) Forecasts for the Year Ending March 2022" on page 5.

Contents

1. Qualitative Information …………………………………………………………………………2

1. Results of Operations ……………………………………………………………………………2
2. Financial Position ………………………………………………………………………………3
3. Cash Flows ……………………………………………………………………………………… 3
4. Forecasts for the Year Ending March 2022 ……………………………………………………5

2. Condensed Consolidated Financial Statements …………………………………………………6

1. Condensed Consolidated Statement of Financial Position ………………………………………6
2. Condensed Consolidated Statement of Income …………………………………………………8

(3)	Condensed Consolidated Statement of Comprehensive Income ………………………………9
(4)	Condensed Consolidated Statement of Changes in Equity ……………………………………10

(5) Condensed Consolidated Statement of Cash Flows ……………………………………………11

1. Changes in Accounting Policies and Accounting Estimates …………………………………12
2. Notes Concerning Going Concern Assumption ………………………………………………12

• Mitsubishi Corporation will hold an earnings conference call for the three months ended June 2021, inviting institutional investors and analysts to join.

The conference material can be accessed live in Japanese from our website (Investor Relations section) at the following URL:

https://www.mitsubishicorp.com/jp/ja/ir/index.htmlTime and date of the earnings conference call:

From 18:00 to 19:00 on Tuesday, August 3, 2021 (JST)

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1. Qualitative Information

(Profit for the period, as used hereinafter, refers to profit for the period attributable to owners of the Parent.)

(1) Results of Operations

Revenues was ¥3,793.7 billion, an increase of ¥1,126.3 billion, or 42% year over year. This was mainly due to increased transaction volumes and rising prices reflecting recovery in demand.

Gross profit was ¥421.5 billion, an increase of ¥41.8 billion, or 11% year over year, mainly due to demand recovery in the Automotive-related business and the Steel business.

Selling, general and administrative expenses was ¥339.2 billion, a decrease of ¥5.7 billion, or 2% year over year, mainly due to changes in the scope of consolidation and reduced expenses at consolidated subsidiaries.

Gains on investments increased ¥26.8 billion, or 308% year over year, to ¥35.5 billion, mainly due to improved fund evaluation profit.

Impairment losses on property, plant and equipment and others remained nearly the same year over year at ¥2.5 billion.

Other income (expense)-net improved ¥19.4 billion year over year, to an income amount of ¥12.4 billion, mainly due to fluctuations of foreign currency exchange.

Finance income increased ¥28.2 billion, or 152% year over year, to ¥46.8 billion, mainly due to increased dividend income from resource-related investments.

Finance costs decreased ¥3.4 billion, or 24% year over year, to ¥10.7 billion, mainly due to lower U.S. dollar interest rates.

Share of profit of investments accounted for using the equity method increased ¥68.3 billion, or 461% year over year, to ¥83.1 billion, reflecting impairment losses in the previous year and recovery in vehicle sales at Mitsubishi Motors Corporation.

As a result, profit before tax increased ¥191.8 billion, or 343% year over year, to ¥247.8 billion.

Accordingly, profit for the period increased ¥150.9 billion, or 411% year over year, to ¥187.6 billion.

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(2) Financial Position

Total assets at June 30, 2021 was ¥19,145.1 billion, an increase of ¥510.1 billion, or 3%, from March 31, 2021.

Current assets was ¥7,420.7 billion, an increase of ¥317.8 billion, or 4%, from March 31, 2021. This was mainly due to an increase in trade and other receivables attributable to increased transaction volumes and rising prices reflecting recovery in demand.

Non-current assets was ¥11,724.4 billion, an increase of ¥192.3 billion, or 2%, from March 31, 2021. This was mainly due to an increase in investments accounted for using the equity method attributable to new or additional investments.

Total liabilities was ¥12,464.1 billion, an increase of ¥367.5 billion, or 3%, from March 31, 2021. Current liabilities was ¥5,708.7 billion, an increase of ¥338.5 billion, or 6%, from March 31, 2021. This was mainly due to an increase in short-term bonds and borrowings due to new fund procurement.

Non-current liabilities was ¥6,755.3 billion, an increase of ¥28.9 billion, or 0%, from March 31, 2021.

Total equity was ¥6,681.1 billion, an increase of ¥142.7 billion, or 2%, from March 31, 2021.

Equity attributable to owners of the Parent was ¥5,771.3 billion, an increase of ¥157.7 billion, or 3%, from March 31, 2021. This was mainly due to an increase in retained earnings accumulated by profit for the period and exchange differences on translating foreign operations resulting from exchange rate fluctuations despite a decrease in retained earnings as a result of the payment of dividends.

Non-controlling interests decreased ¥14.9 billion, or 2%, from March 31, 2021, to ¥909.8 billion. Net interest-bearing liabilities (excluding lease liabilities), which is gross interest-bearing liabilities minus cash and cash equivalents and time deposits, increased ¥130.7 billion, or 3%, from March 31, 2021, to ¥4,309.1 billion.

(3) Cash Flows

Cash and cash equivalents at June 30, 2021 was ¥1,353.2 billion, an increase of ¥35.4 billion from March 31, 2021.

(Operating activities)

Net cash provided by operating activities was ¥124.7 billion, mainly due to cash flows from operating transactions and dividend income, despite increases in working capital requirements and the payment of income taxes.

(Investing activities)

Net cash used in investing activities was ¥79.3 billion. The main uses of cash were payments for the purchase of property, plant and equipment and investments and loans to affiliated companies, which exceeded inflows from the sales of investments in affiliated companies and other investments.

Main items (Segments) included in investing cash flows were as follows.

New/Sustaining Investments

• Australian metallurgical coal business (Mineral Resources)
• Copper business (Mineral Resources)

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