Mitsui & Co (8031) investor relations material

Executive summary

• Q1 profit attributable to owners reached a record ¥294.1 billion, up 53.4% or ¥102.5 billion year-over-year, with core operating cash flow (COCF) at ¥280.9 billion, both exceeding business plan targets.

• Revenue for the quarter rose 31.7% year-over-year to ¥4,347.6 billion, and comprehensive income surged 98.7%, reflecting strong operational and investment performance.

• Growth was driven by asset recycling, IPO gains, and robust segment contributions, especially in Innovation & Corporate Development, Chemicals, and Energy.

• A ¥200 billion share repurchase program was announced, with all repurchased shares to be cancelled to enhance per-share value and capital efficiency.

• Management reaffirmed commitment to shareholder returns, targeting over 50% of COCF, and maintaining flexibility in capital allocation.

Financial highlights

• COCF for Q1 reached ¥280.9 billion, up ¥64.6 billion year-over-year.

• Profit for Q1 was ¥294.1 billion, up ¥102.5 billion year-over-year, a record high for Q1.

• Gross profit rose to ¥413.7 billion from ¥301.4 billion year-over-year.

• Net interest-bearing debt increased to ¥4,416.7 billion, with a net D/E ratio of 0.49x; shareholder equity rose to ¥9.0 trillion.

• Earnings per share (basic) rose to ¥103.73 from ¥66.68 year-over-year.

Outlook and guidance

• Full-year profit forecast is ¥920 billion, with COCF projected at ¥1,050 billion; Q1 progress at 32% and 27% respectively.

• Dividend for FY March 2027 is planned at ¥140 per share, up ¥25 from the previous year, with interim and year-end dividends of ¥70 each.

• Energy segment expected to see full earnings contribution from Q2, especially from LNG-related businesses.

• Management will review capital allocation in Q2, with potential for upward revision if current pace continues.

• ROE target of 12% by FY 2029 remains a top priority, with ongoing review of capital allocation and investment pipeline.