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Mitsui & Co Ltd: Half-yearly Report



  Mitsui & Co Ltd: Half-yearly Report

UK Regulatory Announcement

LONDON

This announcement is for our U.S.$5,000,000,000 Euro Medium Term Note
Programme.

Consolidated Financial Results for the Six-Month Period Ended September 30,
2012

[Based on accounting principles generally accepted in the United States of
America ("U.S. GAAP")]

Tokyo, November 2, 2012 - Mitsui & Co., Ltd. announced its consolidated
financial results for the six-month period ended September 30, 2012.

Mitsui & Co., Ltd. and subsidiaries
(Website : http://www.mitsui.com/jp/en/)
 
President and Chief Executive Officer : Masami Iijima
Investor Relations Contacts : Kenichi Hori, General Manager, Investor
Relations Division TEL 81-3-3285-7533
 

1. Consolidated financial results (Unreviewed)

(1) Consolidated operating results information for the six-month period ended
September 30, 2012
(from April 1, 2012 to September 30, 2012)
 

                                         Six-month period ended
                                        
                                         September 30,
                                         2012                 2011         
                                                     %                    %
Revenues                   Millions of   2,365,898   △ 10.0   2,629,030   19.3
                           yen
Income before Income       Millions of
Taxes and Equity in        yen           160,302     △ 30.8   231,640     22.5
Earnings
Net income attributable    Millions of   168,337     △ 25.9   227,261     24.0
to Mitsui & Co., Ltd.      yen
Net income attributable
to Mitsui & Co., Ltd.      Yen           92.24                124.54       
per share, basic
Net income attributable
to Mitsui & Co., Ltd.      Yen           ―                    124.54       
per share, diluted
                                                                         

Notes:
1.Percentage figures for Revenues, Income before Income Taxes and Equity in
Earnings, and Net income attributable to Mitsui & Co., Ltd. represent changes
from the previous year.
2.Comprehensive Income (Loss) for the six-month periods ended September 30,
2012 and 2011 were ¥14,149 million ( - %) and ¥(32,746) million ( - %),
respectively.
3.Diluted net income attributable to Mitsui & Co., Ltd. per share for the
period ended September 30, 2012 is not disclosed as there are no dilutive
potential shares.
 

(2) Consolidated financial position information

                                                September 30,   March 31, 2012
                                                2012
Total assets                  Millions of yen   8,919,243       9,011,823
Total equity (net worth)      Millions of yen   2,824,786       2,860,810
Mitsui & Co., Ltd.            Millions of yen   2,603,278       2,641,318
shareholders' equity
Mitsui & Co., Ltd.            %                 29.2            29.3
shareholders' equity ratio
Mitsui & Co., Ltd.
shareholders' equity per      Yen               1,426.50        1,447.34
share
                                                               

2. Dividend information

                                 Year ended March 31,       Year ending March
                                                            31, 2013
                                 2013         2012          (Forecast)
Interim dividend       Yen       22           27             
per share
Year-end
dividend per           Yen                    28            21
share
Annual dividend        Yen                    55            43
per share
                                                           

3. Forecast of consolidated operating results for the year ending March 31,
2013 (from April 1, 2012 to March 31, 2013)

                                                                Year ending
                                                               
                                                                March 31, 2013
Net income attributable to Mitsui & Co.,      Millions of yen   310,000
Ltd.
Net income attributable to Mitsui & Co.,      Yen               169.87
Ltd. per share, basic
                                                               

Note : We have changed our forecast net income attributable to Mitsui & Co.,
Ltd. for the year ending March 31, 2013 from ¥400.0 billion to ¥310.0 billion.

4. Others

(1) Increase/decrease of important subsidiaries during the period : Yes
New : 1 company (MMRD Gama Limitada)
 

(2) Number of shares :

                                 September 30, 2012       March 31, 2012
                                                           
Number of shares of common
stock issued, including          1,829,153,527            1,829,153,527
treasury stock
Number of shares of treasury     4,206,991                4,204,441
stock
                                                         
                                                                              
                                 Six-month period ended   Six-month period
                                 September 30, 2012       ended
                                                          September 30, 2011
                                                           
Average number of shares of      1,824,947,980            1,824,826,489
common stock outstanding
                                                                              

Disclosure Regarding Quarterly Review Procedures

As of the date of disclosure of this quarterly earnings report, a review of
the quarterly financial statements is being carried out in accordance with the
Financial Instruments and Exchange Act.

This report contains forward-looking statements including those concerning
future performance of Mitsui & Co., Ltd. (“Mitsui”), and these statements are
based on Mitsui’s current assumptions, expectations and beliefs in light of
the information currently possessed by it.

It is not the intention of Mitsui to undertake to realize these statements,
and various factors may cause Mitsui’s actual results to be materially
different from any future performance expressed or implied by these
forward-looking statements.

For key assumptions on which the statements concerning future performance are
based, please refer to “(2) Forecasts for the year ending March 31, 2013” on
p.18. For cautionary notes with respect to forward-looking statements, please
refer to the “Notice” section on p.22.

Supplementary materials and IR meeting on financial results:

Supplementary materials on financial results can be found on our website.

We will hold an IR meeting on financial results for analysts and institutional
investors on November 5, 2012.

Contents of the meeting (English and Japanese) will be posted on our web site
immediately after the meeting.

                                                                         
Table of Contents
                                                                              
1. Qualitative Information
(1) Operating Environment                                                 2
(2) Results of Operations                                                 3
(3) Financial Condition and Cash Flows                                    13
                                                                              
2. Management Policies
(1) Result and Forecast for Investment and Loan Plan                      17
(2) Forecasts for the Year Ending March 31, 2013                          18
(3) Shareholder Return Policy                                             21
                                                                              
3. Other Information                                                      22
                                                                              
4. Consolidated Financial Statements
(1) Consolidated Balance Sheets                                           23
(2) Statements of Consolidated Income and Comprehensive                   25
Income (Loss)
(3) Statements of Consolidated Cash Flows                                 26
(4) Assumption for Going Concern                                          27
(5) Significant Changes in Shareholder’s Equity                           27
(6) Operating Segment Information                                         27
                                                                              

1. Qualitative Information

As of the date of disclosure of this quarterly earnings report, a review of
the quarterly financial statements is being carried out in accordance with the
Financial Instruments and Exchange Act.

(1) Operating Environment

During the six-month period ended September 30, 2012, the momentum of growth
in the global economy showed a continued slowdown and the downside risks were
seen to be increasing throughout this six-month period. Although the U.S.
economy is continuing a moderate recovery as the employment situation
gradually improves and the real estate market appears to be bottoming out, the
financial conditions in the euro region remain fragile and are negatively
affecting the global economy through the flow of goods and capital. In the
emerging economies, China demonstrated a larger than expected slowdown during
the summer months due to weaker external demand and slower real estate
investment; and Brazil showed a clear slowdown in fixed asset investments. In
Japan, economic recovery has stalled due to weaker demand from Europe
including the indirect effect on flow of goods through China. This shift
occurring in the global economy coupled with the price declines in some of the
key commodity markets have presented severe challenges to our operations.

We remain cautious of the high levels of uncertainty in the global economy:
the potential negative effects by the financial crisis in the euro region and
the financial cliff situation in the U.S.; the unfavorable spillover effects
that may be caused by the lower growth rates in the emerging economies; and
volatile price movements in the international commodity markets. With such
caution as a backdrop, we maintain our view that the global economy will
continue to grow at a moderate pace driven by more manageable economic growth
rates in the emerging economies and the coordinated global monetary policy
easing and fiscal spending.

In the emerging economies, various measures of monetary and fiscal policy
easing are now underway. In China, although the easing of policy tightening
and additional stimulus programs have not gained the traction expected in the
beginning of the fiscal year, we expect domestic demand to grow with a pickup
in personal consumption and investment in infrastructure in response to the
policy easing, and to drive a sustained, reasonably high growth rate in the
medium term. In Latin America, although regional growth showed a weaker
performance, private capital flows remain strong and financing conditions are
generally favorable. In Brazil, we expect that the recent monetary policy
easing and large-scale infrastructure investments will gradually contribute to
higher domestic demand which will lead to strong, sustainable growth. In the
advanced economies, several programs are in place to advance the prospects of
continued recovery albeit at a moderate rate, and to tackle the downside
risks: the European Central Bank’s measures of outright transactions in
secondary sovereign bond markets would provide certain relief to the
vulnerable situation in the euro region; the additional quantitative easing
announced by the Federal Reserve in the U.S. would work to limit the downside
risks; and the Bank of Japan’s further easing of its monetary policy by
expanding the asset purchase program for government bonds aims to support
economic growth and deflect deflationary pressure.

Oil prices (WTI) declined from over $100 per barrel in April to slightly under
$80 per barrel in June at one point, and have subsequently recovered to the
level of $90s per barrel. After closing at ¥10,083 at the end of March 2012,
the Nikkei index gradually declined to the level slightly below ¥8,300 due to
the deepening financial crisis in Europe and the slowing of economic growth in
China, and closed at ¥8,870 at the end of September 2012. In the foreign
exchange market, yen was the preferred currency. After closing at 82.19 per
U.S. dollar at the end of March 2012, the yen appreciated gradually to the
upper half of 70s per U.S. dollar and continued to trade in that range; it
eventually closed at 77.60 per U.S. dollar at the end of September 2012.

Our operating environment is posing a larger challenge for us. We will
continue to closely monitor the overall shift in the global economy, the
movements in the international commodity markets, and the effects of the
various policies implemented by the economic regions explained here, and will
navigate our businesses with discipline and effective long term planning.

(2) Results of Operations

1) Analysis of Consolidated Income Statements

Revenues

Mitsui & Co., Ltd. (“Mitsui”) and its subsidiaries (collectively “we”)
recorded total revenues of ¥2,365.9 billion for the six-month period ended
September 30, 2012, a decline of ¥263.1 billion from ¥2,629.0 billion for the
corresponding six-month period of the previous year.

Revenues from sales of products for the six-month period ended September 30,
2012 were ¥2,117.7 billion, a decline of ¥266.1 billion from ¥2,383.8 billion
for the corresponding six-month period of the previous year, as a result of
the following:

  * The Chemicals Segment reported a decline of ¥142.4 billion mainly due to
    underperforming trading activities in petrochemical materials.
  * The Energy Segment reported a decline of ¥93.4 billion. Oil trading
    businesses reported a decline of ¥128.9 billion due to deterioration of
    market conditions, while an increase of ¥29.4 billion was reported in oil
    and gas producing businesses due to an increase in volume and higher
    prices.
  * The Mineral & Metal Resources Segment reported a decline of ¥42.9 billion,
    mainly attributable to a decline in iron ore prices.
  * The Lifestyle Segment reported an increase of ¥17.8 billion. Multigrain AG
    (Switzerland) contributed to the increase as a result of its
    reclassification from associated company to subsidiary during the
    corresponding six-month period of the previous year. We consolidate
    Multigrain AG’s results of operation based on a three-month time lag.

Revenues from sales of services for the six-month period ended September 30,
2012 were ¥185.4 billion, an increase of ¥5.2 billion from ¥180.2 billion for
the corresponding six-month period of the previous year.

Revenues from other sales for the six-month period ended September 30, 2012
were ¥62.8 billion, a decrease of ¥2.2 billion from ¥65.0 billion for the
corresponding six-month period of the previous year. Mitsui recorded losses
and gains in revenues related to the commodity derivatives trading business,
which correspond to foreign exchange losses of ¥5.2 billion and ¥0.4 billion
posted in other expense-net for the six-month periods ended September 30, 2012
and 2011, respectively.

Gross Profit

Gross profit for the six-month period ended September 30, 2012 was ¥393.0
billion, a decline of ¥60.9 billion from ¥453.9 billion for the corresponding
six-month period of the previous year as a result of the following:

  * The Mineral & Metal Resources Segment reported a decline of ¥34.6 billion
    in gross profit. Mitsui Iron Ore Development Pty. Ltd. (Australia)
    reported a decline of ¥21.0 billion in gross profit reflecting the decline
    in iron ore prices, which was partially offset by the positive effect of
    increases in sales volume led by both the effect of incremental capacity
    and the reversal effect of unseasonably wet weather for the corresponding
    six-month period of the previous year. Mitsui-Itochu Iron Pty. Ltd.
    (Australia) also recorded a decline of ¥11.3 billion due to the decline in
    iron ore prices.
  * The Energy Segment reported a decline of ¥11.0 billion in gross profit.
    Mitsui Coal Holdings Pty. Ltd. (Australia) reported a decline of ¥12.8
    billion due to lower coal prices. A decline in gross profit of ¥6.8
    billion in petroleum trading activities was recorded at Mitsui due to
    deterioration of market conditions. Furthermore, Mitsui E&P USA LLC
    (United States) reported a decline of ¥6.6 billion due to an increase in
    depreciation costs as well as a decline in gas prices in the U.S.
    Meanwhile, Mitsui Oil Exploration Co., Ltd. (Japan) reported an increase
    of ¥11.0 billion due to an increase in volume; Mitsui E&P Middle East B.
    V. (Netherland) reported an increase of ¥4.4 billion due to increases in
    both oil prices and volume; and Mitsui E&P Texas LP (United States)
    recorded an increase of ¥4.3 billion.
  * The Lifestyle Segment reported a decline of ¥7.5 billion in gross profit.
    The main cause of the decline included the reversal effect of ¥4.6 billion
    mark-to-market valuation gains on commodity derivative contracts related
    to coffee for the corresponding six-month period of the previous year, as
    well as a ¥3.2 billion decline recorded at Multigrain AG, reflecting a
    drop in the soybean harvest affected by the drought in Brazil.
  * The Americas Segment reported a decline of ¥4.7 billion. Novus
    International, Inc. (United States) reported a decline of ¥4.8 billion due
    to a decline in sales price despite the increase in sales volume of
    methionine, as well as a write-down on inventories of feed additives other
    than methionine.
  * The Iron & Steel Products Segment reported a decline of ¥4.3 billion in
    gross profit, due to weaker demand and lower prices in emerging markets
    including Asia and sluggish domestic sales.
  * The Machinery & Infrastructure Segment reported an increase of ¥3.0
    billion in gross profit mainly due to a reversal effect of a loss
    allowance for vessels under construction recorded in the corresponding
    six-month period of the previous year.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the six-month period ended
September 30, 2012 were ¥251.5 billion, a decline of ¥2.8 billion from ¥254.3
billion for the corresponding six-month period of the previous year. The table
below provides a breakdown of selling, general and administrative expenses
used for our internal review.

[Table omitted ]

The table below provides selling, general and administrative expenses broken
down by operating segment.

[Table omitted ]

Effective April 1, 2012, we changed our reportable operating segments.
Starting from the six-month period ended September 30, 2012, the headquarters’
cost allocation system was changed from partial allocation to full allocation
to the operating segments. For more information, see 2) Operating Results by
Operating Segment.

Provision for Doubtful Receivables

Provision for doubtful receivables for the six-month period ended September
30, 2012 was ¥7.2 billion, an increase of ¥2.3 billion from ¥4.9 billion for
the corresponding six-month period of the previous year. The provisions for
both periods represented aggregated reserves for individually small
receivables.

Interest Expense—Net

Interest expense, net of interest income, for the six-month period ended
September 30, 2012 was ¥6.3 billion, an increase of ¥3.9 billion from ¥2.4
billion for the corresponding six-month period of the previous year. Interest
income declined by ¥3.4 billion mainly due to the lower interest income from
the preferred shares of Valepar S.A. The following table provides the periodic
average of 3 month Libor of the Japanese yen and the U.S. dollar for the
six-month periods ended September 30, 2012 and 2011.

Periodic average of 3 month Libor (%p.a.)
                         Six-month period
                         ended September 30,
                         2012         2011
Japanese yen             0.19         0.19
U.S. dollar              0.44         0.29
                                       

Dividend Income

Dividend income for the six-month period ended September 30, 2012 was ¥46.4
billion, an increase of ¥7.5 billion from ¥38.9 billion for the corresponding
six-month period of the previous year. Dividends from six LNG projects (Abu
Dhabi, Oman, Qatargas 1 and 3, Equatorial Guinea and Sakhalin II) were ¥37.2
billion in total, an increase of ¥9.0 billion from the corresponding six-month
period of the previous year, reflecting an increase in dividends received from
the Sakhalin II project.

Gain on Sales of Securities—Net

Gain on sales of securities for the six-month period ended September 30, 2012
was ¥15.7 billion, an increase of ¥3.8 billion from ¥11.9 billion for the
corresponding six-month period of the previous year.

  * For the six-month period ended September 30, 2012, MBK Healthcare Partners
    Limited (United Kingdom) recorded a ¥5.5 billion gain related to equity
    dilution in IHH Healthcare Bhd. (Malaysia) (*1) The relevant gain includes
    a ¥5.3 billion gain due to the dilution of MBK Healthcare Partners
    Limited’s stake in IHH Healthcare Bhd. from 26.63% to 20.48% reflecting
    the issuance of new shares by IHH Healthcare Bhd. upon its initial public
    offering on the Bursa Malaysia and Singapore Exchange in July 2012 (*2).
    Meanwhile, a gain of ¥4.8 billion on the partial sales of shares in Nihon
    Unisys, Ltd. was recorded.
  * For the corresponding six-month period of the previous year, a
    remeasurement gain of ¥3.6 billion on existing interests resulting from
    acquisition of the entire stake in Multigrain AG was recorded.

(*1) IHH Healthcare Bhd. changed its name from Integrated Healthcare Holdings
Sdn. Bhd. on April 20, 2012.

(*2) MBK Healthcare Partners Limited recorded a ¥1.9 billion gain related to
equity dilution in IHH Healthcare Bhd. in connection with the acquisition of
Acibadem Saglik Yatirimlari Holding for the three-month period ended June 30,
2012. For the six-month period ended September 30, 2012, the gain was revised
to ¥0.3 billion.

Loss on Write-Downs of Securities

Loss on write-downs of securities for the six-month period ended September 30,
2012 was ¥18.4 billion, a deterioration of ¥3.0 billion from ¥15.4 billion for
the corresponding six-month period of the previous year.

  * Due to a decline in share price, impairment losses on listed securities of
    ¥4.9 billion in Nippon Steel Corporation and ¥3.0 billion in Mitsui
    Chemicals Inc. were recorded for the six-month period ended September 30,
    2012.
  * An impairment loss of ¥4.0 billion on shares in Formosa Epitaxy
    Incorporation, a LED manufacturer in Taiwan, was recorded for the
    corresponding six-month period of the previous year.

Gain (Loss) on Disposal or Sales of Property and Equipment—Net

Gain on disposal or sales of property and equipment—net for the six-month
period ended September 30, 2012 was ¥1.5 billion, an increase of ¥0.1 billion
from ¥1.4 billion for the corresponding six-month period of the previous year.
There were miscellaneous small transactions in both periods.

Impairment Loss of Long-Lived Assets

Impairment loss of long-lived assets for the six-month period ended September
30, 2012 was ¥0.2 billion, an improvement of ¥1.9 billion from ¥2.1 billion
for the corresponding six-month period of the previous year. There were
miscellaneous small impairments in both periods.

Impairment Loss of Goodwill

There was no impairment loss of goodwill for the six-month period ended
September 30, 2012, and ¥1.9 billion of impairment loss of goodwill consisting
of miscellaneous small impairments was recorded for the corresponding
six-month period of the previous year.

Other Expense (Income)— Net

Other expense—net for the six-month period ended September 30, 2012 was ¥12.7
billion, a deterioration of ¥19.2 billion from income of ¥6.5 billion for the
corresponding six-month period of the previous year.

  * For the six-month period ended September 30, 2012, exploration expenses
    totaled ¥14.0 billion including those recorded at oil and gas producing
    businesses. The Innovation & Cross Function Segment recorded a foreign
    exchange loss of ¥5.2 billion in the commodity derivatives trading
    business at Mitsui, which corresponded to related revenues in the same
    segment.
  * For the corresponding six-month period of the previous year, Mitsui
    recorded foreign exchange gains of ¥4.9 billion and Shark Bay Salt Pty.
    Ltd. recorded a gain of ¥5.8 billion in other income-net as consideration
    for releasing a part of the mining lease area to support the progress of
    an LNG project in the vicinity of the salt field. Meanwhile, exploration
    expenses totaled ¥9.4 billion including those recorded at oil and gas
    producing businesses.

Income Taxes

Income taxes for the six-month period ended September 30, 2012 were ¥77.6
billion, a decline of ¥31.5 billion from ¥109.1 billion for the corresponding
six-month period of the previous year. Major factors were a decline in “income
from continuing operations before income taxes and equity in earnings” and
“equity earnings of associated companies-net” as well as a decline in deferred
tax on retained earnings of associated companies due to the reduction in
Japanese corporate income tax rate, despite the recognition of valuation
allowance against deferred tax assets, which we determined are not more likely
than not to be realized. Furthermore, reversal of deferred tax liabilities
related to dividends received from associated companies for the six-month
period ended September 30, 2012 was approximately ¥15.0 billion, an increase
of approximately ¥5.0 billion from approximately ¥10.0 billion for the
corresponding six-month period of the previous year.

The effective tax rate on “income from continuing operations before income
taxes and equity in earnings” for the six-month period ended September 30,
2012 was 48.4%, an increase of 1.3% from 47.1% for the corresponding six-month
period of the previous year. Major factors were the negative factor of the
aforementioned recognition of the valuation allowance against deferred tax
assets, and the positive factor of a reduction in the tax rate applied to
deferred tax on retained earnings of associated companies due to the decline
in the Japanese corporate income tax rate.

Equity in Earnings of Associated Companies—Net

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥97.3 billion, a decline of ¥26.7 billion from ¥124.0
billion for the corresponding six-month period of the previous year as a
result of the following:

  * A decline of ¥26.0 billion was recorded at Valepar S.A. (Brazil), mainly
    due to a decline in iron ore prices and negative effect of foreign
    exchange.
  * Earnings at Robe River Mining Co. Pty. Ltd. (Australia) reported a decline
    of ¥8.7 billion, due to the decline in iron ore prices, which was
    partially offset by the positive effect of an increase in sales volume led
    by both the effect of incremental capacity and the reversal effect of
    unseasonably wet weather for the corresponding six-month period of the
    previous year.
  * Compañía Minera Doña Inés de Collahuasi SCM (Chile) reported a decline of
    ¥6.0 billion, mainly due to a decline in sales volume.
  * Overseas power production businesses reported a decline of ¥8.1 billion
    due to a decline of ¥7.4 billion in mark-to-market valuation gains and
    losses such as those on power derivative contracts and fuel purchase
    contracts.
  * Due to a decline in share price, impairment losses on investments of ¥28.4
    billion in total, including ¥14.8 billion for TPV Technology Limited
    (Taiwan), ¥6.7 billion for Moshi Moshi Hotline, Inc. (Japan) and ¥6.0
    billion for Nihon Unisys, Ltd. (Japan), were recorded in equity earnings
    of associated companies-net for the corresponding six-month period of the
    previous year.

Net Income attributable to Noncontrolling Interests

Net income attributable to noncontrolling interests for the six-month period
ended September 30, 2012 was ¥11.7 billion, a decline of ¥7.5 billion from
¥19.2 billion for the corresponding six-month period of the previous year.

Net Income attributable to Mitsui & Co., Ltd.

As a result, net income attributable to Mitsui & Co., Ltd. for the six-month
period ended September 30, 2012 was ¥168.3 billion, a decline of ¥59.0 billion
from ¥227.3 billion for the corresponding six-month period of the previous
year.

2) Operating Results by Operating Segment

Effective April 1, 2012, we changed our reportable operating segments. In
accordance with this change, the operating segment information for the
six-month period ended September 30, 2011 has been restated to conform to the
current year presentation. In addition, starting from the six-month period
ended September 30, 2012, we changed the headquarters’ cost allocation system
from partial allocation to full allocation to the operating segments. The
impact of this change to operating income (loss) and net income (loss)
attributable to Mitsui & Co., Ltd. for each operating segment for the
six-month period ended September 30, 2012 was as follows:

                                   Impact on            Impact on Net income
                                                        (Loss)
(Billions of yen)                  Operating Income    
                                   (Loss)               attributable to
                                                        Mitsui & Co., Ltd.
Iron & Steel Products              (1.0)                (0.7)
Mineral & Metal Resources          (5.4)                (4.0)
Machinery & Infrastructure         (3.7)                (2.8)
Chemicals                          (2.3)                (1.7)
Energy                             (5.1)                (3.8)
Lifestyle                          (3.8)                (2.8)
Innovation & Cross Function        (2.0)                (1.5)
Americas                           0                    0
Europe, the Middle East and        0                    0
Africa
Asia Pacific                       0                    0
All Other/Adjustments and          23.4                 17.4
Eliminations
Consolidated total                 0                    0
                                                                              

Iron & Steel Products Segment

Gross profit for the six-month period ended September 30, 2012 was ¥18.1
billion, a decline of ¥4.3 billion from ¥22.4 billion for the corresponding
six-month period of the previous year. The main cause of the decline was
weaker demand and lower prices in emerging markets including Asia and sluggish
domestic sales.

Operating income for the six-month period ended September 30, 2012 was ¥0.2
billion, a decline of ¥5.4 billion from ¥5.6 billion for the corresponding
six-month period of the previous year.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥1.1 billion, a decline of ¥0.6 billion from ¥1.7
billion for the corresponding six-month period of the previous year.

Net loss attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥0.8 billion, a decline of ¥5.3 billion from net income
of ¥4.5 billion for the corresponding six-month period of the previous year.
In addition to the above-mentioned factors, for the six-month period ended
September 30, 2012, this segment recorded an impairment loss of ¥4.3 billion
on listed securities in Nippon Steel Corporation reflecting the decline in
share price.

Mineral & Metal Resources Segment

Gross profit for the six-month period ended September 30, 2012 was ¥75.5
billion, a decline of ¥34.6 billion from ¥110.1 billion for the corresponding
six-month period of the previous year. The main factor behind the decline was
the decrease in iron ore prices.

The majority of contract prices applied for products sold during the
corresponding six-month period of the previous year was based on a daily
average of spot reference prices during the six-month period starting from
December 1, 2010 through May 31, 2011.

However, reflecting the transition to a more diversified sales contract
portfolio starting from the three-month period ended December 31, 2011, the
majority of contract prices applied for products sold during the six-month
period ended September 30, 2012 was based on pricing that reflects current
spot reference prices, such as a daily average of spot reference prices for
the current quarter of the shipment month and a daily average of spot
reference prices for the shipment month.

Mitsui Iron Ore Development Pty. Ltd. reported a decline of ¥21.0 billion in
gross profit reflecting the decline in iron ore prices, which was partially
offset by the positive effect of increases in sales volume led by both the
effect of incremental capacity and the reversal effect of unseasonably wet
weather for the corresponding six-month period of the previous year.
Mitsui-Itochu Iron Pty. Ltd. also recorded a decline of ¥11.3 billion due to
the decline in iron ore prices.

Operating income for the six-month period ended September 30, 2012 was ¥57.7
billion, a decline of ¥41.5 billion from ¥99.2 billion for the corresponding
six-month period of the previous year. In addition to a decline in gross
profit, selling, general and administrative expenses increased.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥35.3 billion, a decline of ¥47.4 billion from ¥82.7
billion for the corresponding six-month period of the previous year. Major
factors were as follows:

  * Valepar S.A. posted earnings of ¥17.9 billion, a decline of ¥26.0 billion
    from ¥43.9 billion for the corresponding six-month period of the previous
    year, mainly due to a decline in iron ore prices and the negative effect
    of foreign exchange.
  * Earnings at Robe River Mining Co. Pty. Ltd. were ¥16.1 billion, a decline
    of ¥8.7 billion from ¥24.8 billion for the corresponding six-month period
    of the previous year, due to the decline in iron ore prices, which was
    partially offset by the positive effect of an increase in sales volume led
    by both the effect of incremental capacity and the reversal effect of
    unseasonably wet weather for the corresponding six-month period of the
    previous year.
  * Compañía Minera Doña Inés de Collahuasi SCM recorded earnings of ¥2.9
    billion, a decline of ¥6.0 billion from ¥8.9 billion for the corresponding
    six-month period of the previous year mainly due to a decline in sales
    volume.

Net income attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥49.7 billion, a decline of ¥62.1 billion from ¥111.8
billion for the corresponding six-month period of the previous year.

Machinery & Infrastructure Segment

Gross profit for the six-month period ended September 30, 2012 was ¥46.7
billion, an increase of ¥3.0 billion from ¥43.7 billion for the corresponding
six-month period of the previous year.

  * The Infrastructure Projects Business Unit reported a decline of ¥0.8
    billion in gross profit.
  * The Motor Vehicles & Construction Machinery Business Unit reported an
    increase of ¥1.2 billion in gross profit. Mining and construction
    machinery-related businesses in Americas achieved a solid performance.
  * The Marine & Aerospace Business Unit reported an increase of ¥2.7 billion
    in gross profit due to a reversal effect of a loss allowance for vessels
    under construction recorded in the corresponding six-month period of the
    previous year.

Operating loss for the six-month period ended September 30, 2012 was ¥7.2
billion, a deterioration of ¥2.1 billion from ¥5.1 billion for the
corresponding six-month period of the previous year. Despite the increase in
gross profit, selling, general and administrative expenses increased.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥13.8 billion, a decline of ¥9.0 billion from ¥22.8
billion for the corresponding six-month period of the previous year.

  * The Infrastructure Projects Business Unit reported a decline of ¥9.2
    billion. Overseas power producers reported equity in earnings of ¥1.8
    billion in total, a decline of ¥7.6 billion from ¥9.4 billion for the
    corresponding six-month period of the previous year. Mark-to-market
    valuation gains and losses, such as those on long-term power derivative
    contracts and long-term fuel purchase contracts, declined by ¥7.0 billion
    to a loss of ¥4.5 billion from a gain of ¥2.5 billion for the
    corresponding six-month period of the previous year. The major cause of
    the decline was a reversal of valuation gains at Paiton 3 due to the
    application of the lease accounting as a result of the commencement of
    commercial operation, and the reversal effect of valuation gains due to a
    rise in gas prices in the United Kingdom for the corresponding six-month
    period of the previous year.

  * The Motor Vehicles & Construction Machinery Business Unit reported an
    increase of ¥1.5 billion. Automotive-related businesses in North America
    reported an increase.
  * The Marine & Aerospace Business Unit reported a decline of ¥1.3 billion,
    reflecting a reversal effect of the gain on sales of an FPSO (Floating
    Production, Storage and Offloading vessel) at an FPSO leasing business
    recorded in the corresponding six-month period of the previous year.

Net income attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥9.0 billion

Chemicals Segment

Gross profit for the six-month period ended September 30, 2012 was ¥33.1
billion, a decline of ¥1.4 billion from ¥34.5 billion for the corresponding
six-month period of the previous year. This was mainly due to underperforming
trading activities of fertilizer resources and materials, despite the increase
in ammonia prices at P.T. Kaltim Pasifik Amoniak (Indonesia).

Operating income for the six-month period ended September 30, 2012 was ¥3.1
billion, a decline of ¥3.5 billion from operating income of ¥6.6 billion for
the corresponding six-month period of the previous year. In addition to the
decline in gross profit, selling, general and administrative expenses
increased.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥4.0 billion, an increase of ¥2.1 billion from ¥1.9
billion for the corresponding six-month period of the previous year. Compañía
Minera Miski Mayo S.R.L. (Peru), in which Mitsui Bussan Fertilizer Resources
B.V. (Netherland) invests, contributed to the increase due to higher sales
volume and phosphate ore prices.

Net loss attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥0.9 billion, a deterioration of ¥8.6 billion from net
income of ¥7.7 billion for the corresponding six-month period of the previous
year.

In addition to the above-mentioned factors, the following factors also
affected results:

  * For the corresponding six-month period of the previous year, Shark Bay
    Salt Pty. Ltd. recorded a gain of ¥5.8 billion in other income-net as
    consideration for releasing a part of the mining lease area to support the
    progress of an LNG project in the vicinity of the salt field, which was
    partly offset by its impairment loss of goodwill.
  * For the six-month period ended September 30, 2012, this segment recorded
    an impairment loss of ¥3.0 billion on listed securities in Mitsui
    Chemicals Inc. reflecting the decline in share price.

Energy Segment

The weighted average crude oil prices applied to our operating results for the
six-month period ended September 30, 2012 and 2011 were estimated to be US$117
and US$104 per barrel, respectively.

Gross profit for the six-month period ended September 30, 2012 was ¥97.5
billion, a decline of ¥11.0 billion from ¥108.5 billion for the corresponding
six-month period of the previous year, primarily due to the following factors:

  * Mitsui Oil Exploration Co., Ltd. reported an increase of ¥11.0 billion due
    to increase in production volume, and Mitsui E&P Middle East B. V.
    reported an increase of ¥4.4 billion due to increases in both oil prices
    and production volume. Mitsui E&P Texas LP, which acquired a working
    interest in the Eagle Ford shale project during the three-month period
    ended December 31, 2011, and was consolidated with a three-month time lag,
    recorded a gross profit of ¥4.3 billion.
  * Mitsui Coal Holdings Pty. Ltd. reported a decline of ¥12.8 billion due to
    lower coal prices.
  * A decline in gross profit of ¥6.8 billion in petroleum trading activities
    was recorded at Mitsui due to deterioration of market conditions.
  * Mitsui E&P USA LLC reported a decline of ¥6.6 billion due to an increase
    in depreciation costs as well as a decline in gas prices in the United
    States, despite an increase in production volume.

Operating income for the six-month period ended September 30, 2012 was ¥70.3
billion, a decline of ¥16.1 billion from ¥86.4 billion for the corresponding
six-month period of the previous year. In addition to a decline in gross
profit, selling, general and administrative expenses increased.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥22.8 billion, a decline of ¥2.0 billion from ¥24.8
billion for the corresponding six-month period of the previous year.

Net income attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥78.9 billion, a decline of ¥8.5 billion from ¥87.4
billion for the corresponding six-month period of the previous year. In
addition to the above-mentioned factors, the following factors also affected
results:

  * Dividends from six LNG projects (Abu Dhabi, Oman, Qatargas 1 and 3,
    Equatorial Guinea and Sakhalin II) were ¥37.2 billion in total, an
    increase of ¥9.0 billion from the corresponding six-month period of the
    previous year, due mainly to an increase in dividends received from the
    Sakhalin II project.
  * Reversal of deferred tax liabilities on undistributed retained earnings of
    associated companies at the time of profit distribution increased by
    approximately ¥3.0 billion from the corresponding six-month period of the
    previous year.
  * For the six-month period ended September 30, 2012, exploration expenses of
    ¥13.6 billion were recorded in other income-net, including those recorded
    by Mitsui E&P Mozambique Area 1 Limited (United Kingdom). For the
    corresponding six-month period of the previous year, exploration expenses
    totaled ¥9.2 billion including those recorded by Mitsui E&P Australia Pty
    Limited (Australia).

Lifestyle Segment

Gross profit for the six-month period ended September 30, 2012 was ¥53.5
billion, a decline of ¥7.5 billion from ¥61.0 billion for the corresponding
six-month period of the previous year.

  * The Food Resources Business Unit reported a decline of ¥5.6 billion.
    Multigrain AG recorded a decline of ¥3.2 billion, reflecting a drop in the
    soybean harvest affected by the drought in Brazil.
  * The Food Products & Services Business Unit recorded a decline of ¥2.8
    billion, reflecting the reversal effect of ¥4.6 billion mark-to-market
    valuation gains on commodity derivative contracts related to coffee for
    the corresponding six-month period of the previous year.
  * The Consumer Service Business Unit reported an increase of ¥0.9 billion.

Operating loss for the six-month period ended September 30, 2012 was ¥1.8
billion, a decline of ¥12.7 billion from operating income of ¥10.9 billion for
the corresponding six-month period of the previous year. In addition to the
decline in gross profit, selling, general and administrative expenses
increased.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥5.5 billion, an increase of ¥1.9 billion from ¥3.6
billion for the corresponding six-month period of the previous year.

  * This segment recorded a ¥2.9 billion impairment loss on listed securities
    in Mitsui Sugar Co., Ltd. for the six-month period ended September 30,
    2012, reflecting the decline in share price.
  * IHH Healthcare Bhd., in which MBK Healthcare Partners Limited invested
    during the three-month period ended June 30, 2011, recorded an increase of
    ¥2.0 billion. MBK Healthcare Partners Limited recognizes equity earnings
    of IHH Healthcare Bhd. with a three-month time lag.

Net income attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥4.8 billion, a decline of ¥8.8 billion from ¥13.6
billion for the corresponding six-month period of the previous year. In
addition to the above-mentioned factors, the following factors also affected
results:

  * MBK Healthcare Partners Limited recorded a ¥5.5 billion gain related to
    equity dilution in IHH Healthcare Bhd. The relevant gain includes a ¥5.3
    billion gain due to the dilution of MBK Healthcare Partners Limited’s
    stake in IHH Healthcare Bhd. from 26.63% to 20.48% reflecting the issuance
    of new shares by IHH Healthcare Bhd. upon its initial public offering on
    the Bursa Malaysia and Singapore Exchange in July 2012.
  * For the corresponding six-month period of the previous year, this segment
    recorded a ¥3.6 billion remeasurement gain due to the reclassification of
    Multigrain AG.

Innovation & Cross Function Segment

Gross profit for the six-month period ended September 30, 2012 was ¥28.4
billion, an increase of ¥2.6 billion from ¥25.8 billion for the corresponding
six-month period of the previous year.

  * The IT Business Unit reported a decline of ¥0.3 billion.
  * The Financial & New Business Unit reported an increase of ¥1.1 billion.
    Mitsui & Co. Commodity Risk Management Ltd. (United Kingdom) posted a
    decline due to underperforming derivatives trading. Gross profits
    corresponding to foreign exchange losses of ¥5.2 billion and ¥0.4 billion
    related to the commodity derivatives trading business at Mitsui posted in
    other expenses-net were included in gross profit for the six-month period
    ended September 30, 2012 and for the corresponding six-month period of the
    previous year, respectively.
  * The Transportation Logistics Business Unit reported an increase of ¥1.8
    billion, mainly attributable to the gross profit of Portek International
    Private Limited (Singapore), which was newly acquired during the
    three-month period ended September 30, 2011.

Operating loss for the six-month period ended September 30, 2012 was ¥8.9
billion, a deterioration of ¥0.2 billion from ¥8.7 billion for the
corresponding six-month period of the previous year.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥9.5 billion, an increase of ¥28.6 billion from equity
in losses of ¥19.1 billion for the corresponding six-month period of the
previous year. Reflecting the decline in share price, this segment recorded
impairment losses on listed securities in an amount of ¥14.8 billion in TPV
Technology Limited, ¥6.7 billion in Moshi Moshi Hotline, Inc. and ¥6.0 billion
in Nihon Unisys, Ltd., for the six-month period ended September 30, 2011.

Net income attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥5.9 billion, an increase of ¥30.0 billion from net
loss of ¥24.1 billion for the corresponding six-month period of the previous
year. In addition to the above-mentioned factors, there were the following
factors:

  * For the six-month period ended September 30, 2012, this segment reported a
    gain on sales of securities of ¥4.8 billion through the partial sales of
    its shares in Nihon Unisys, Ltd.
  * For the corresponding six-month period of the previous year, this segment
    recorded a ¥4.0 billion impairment loss on shares in Formosa Epitaxy
    Incorporation, an LED epitaxy and chip manufacturer in Taiwan.
  * For the six-month period ended September 30, 2012 and for the
    corresponding six-month period of the previous year, foreign exchange
    losses of ¥5.2 billion and ¥0.4 billion, respectively, were posted in
    other expense-net in relation to the commodity derivatives trading
    business at Mitsui.

Americas Segment

Gross profit for the six-month period ended September 30, 2012 was ¥33.9
billion, a decline of ¥4.7 billion from ¥38.6 billion for the corresponding
six-month period of the previous year. Novus International, Inc. reported a
decline of ¥4.8 billion due to a decline in sales price despite the increase
in sales volume of methionine, as well as a write-down on inventories of feed
additives other than methionine.

Operating income for the six-month period ended September 30, 2012 was ¥8.1
billion, a decline of ¥5.6 billion from ¥13.7 billion for the corresponding
six-month period of the previous year. In addition to the decline in gross
profit, this segment reported an increase in the provision for doubtful
receivables.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥2.0 billion, a decline of ¥0.5 billion from ¥2.5
billion for the corresponding six-month period of the previous year.

Net income attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥8.8 billion, a decline of ¥1.5 billion from ¥10.3
billion for the corresponding six-month period of the previous year.

Europe, the Middle East and Africa Segment

Gross profit for the six-month period ended September 30, 2012 was ¥7.3
billion, a decline of ¥1.5 billion from ¥8.8 billion for the corresponding
six-month period of the previous year.

Operating loss for the six-month period ended September 30, 2012 was ¥1.9
billion, a deterioration of ¥1.1 billion from ¥0.8 billion for the
corresponding six-month period of the previous year.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥0.2 billion, a decline of ¥0.3 billion from ¥0.5
billion for the corresponding six-month period of the previous year.

Net profit attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥0.5 billion, the same amount as the corresponding
six-month period of the previous year.

Asia Pacific Segment

Gross profit for the six-month period ended September 30, 2012 was ¥5.2
billion, a decline of ¥1.0 billion from ¥6.2 billion for the corresponding
six-month period of the previous year.

Operating loss for the six-month period ended September 30, 2012 was ¥2.4
billion, a deterioration of ¥0.8 billion from ¥1.6 billion for the
corresponding six-month period of the previous year.

Equity in earnings of associated companies for the six-month period ended
September 30, 2012 was ¥3.1 billion, an increase of ¥0.6 billion from ¥2.5
billion for the corresponding six-month period of the previous year.

Net income attributable to Mitsui & Co., Ltd. for the six-month period ended
September 30, 2012 was ¥16.8 billion, a decline of ¥9.0 billion from ¥25.8
billion for the corresponding six-month period of the previous year. In
addition to the above-mentioned factors, this segment recorded earnings from
the segment’s minority interest in Mitsui Iron Ore Development Pty. Ltd.,
Mitsui-Itochu Iron Pty. Ltd. and Mitsui Coal Holdings Pty. Ltd., which were
lower due to declines in the prices of iron ore and coal.

(3) Financial Condition and Cash Flows

1) Assets, Liabilities and Shareholders’ Equity

Total assets as of September 30, 2012 were ¥8,919.2 billion, a decline of
¥92.6 billion from ¥9,011.8 billion as of March 31, 2012.

Total current assets as of September 30, 2012 were ¥4,135.5 billion, a decline
of ¥290.8 billion from ¥4,426.3 billion as of March 31, 2012. Trade
receivables decreased by ¥203.4 billion, including declines at the petroleum
trading business in the Energy as well as the Iron & Steel Products and
Chemicals segments mainly attributable to the decline in sales volume. Cash
and cash equivalents declined by ¥136.5 billion. Meanwhile, inventories
increased by ¥46.5 billion due to a seasonal inventory increase in Multigrain
AG and higher inventory levels of precious metals.

Total current liabilities as of September 30, 2012 increased by ¥124.7 billion
to ¥2,748.7 billion from ¥2,624.0 billion as of March 31, 2012. Trade payables
declined by ¥81.2 billion mainly at the petroleum trading business in the
Energy and the Chemicals Segment corresponding to the decline in trade
receivables. Meanwhile, short-term debt increased by ¥132.9 billion at Mitsui
and its subsidiaries. Furthermore, current maturities of long-term debt
increased by ¥136.5 billion mainly at Multigrain AG and Mitsui.

As a result, working capital, or current assets less current liabilities, as
of September 30, 2012 totaled ¥1,386.8 billion, a decline of ¥415.5 billion
from ¥1,802.3 billion as of March 31, 2012.

The sum of “total investments and non-current receivables,” “net property and
equipment,” “intangible assets, less accumulated amortization,” “deferred tax
assets-non-current,” and “other assets” as of September 30, 2012 totaled
¥4,783.7 billion, an increase of ¥198.2 billion from ¥4,585.5 billion as of
March 31, 2012, mainly due to the following factors:

Total of investments and non-current receivables as of September 30, 2012 was
¥3,343.7 billion, an increase of ¥152.0 billion from ¥3,191.7 billion as of
March 31, 2012.

Within this category, investments in and advances to associated companies as
of September 30, 2012 was ¥1,856.3 billion, an increase of ¥147.2 billion from
¥1,709.1 billion as of March 31, 2012. Major factors included an increase of
¥85.9 billion due to an acquisition of 16.95% stake in Inversiones Mineras
Acrux SpA (Chile), a joint venture with Corporación Nacional del Cobre de
Chile (“Codelco”); an increase of ¥85.7 billion due to an additional
investment in Japan Australia LNG (MIMI) Pty. Ltd. (Australia) to acquire
working interests in the Browse LNG project; an increase of ¥10.7 billion due
to investments in and loans to FPSO (Floating Production, Storage and
Offloading vessel) leasing businesses for Brazilian deepwater oil exploration;
and increase of ¥9.8 billion due to an acquisition of a 49.9% stake in
National Plant and Equipment Pty Ltd., an Australian mining equipment rental
company. Furthermore, there were net increases in equity earnings of ¥47.7
billion (net of ¥49.6 billion in dividends received from associated companies)
as well as a decline of ¥92.4 billion resulting from a foreign exchange
translation adjustment of foreign investments due to the appreciation of the
Japanese yen. There was a decline in preferred shares of Valepar S.A. of ¥15.4
billion resulting from a foreign exchange translation adjustment due to
exchange appreciation of the Japanese yen and redemption of the preferred
shares.

Other investments as of September 30, 2012 were ¥703.4 billion, a decline of
¥89.1 billion from ¥792.5 billion as of March 31, 2012. The decline by
collection is mainly due to a decrease of ¥17.2 billion in investment in
Sakhalin Energy Investment Company Ltd. due to capital redemption (in
addition, a ¥3.6 billion decline due to a foreign exchange translation loss).
Furthermore, there was a ¥52.8 billion net decline in unrealized holding gains
on available-for-sale securities, such as those of INPEX Corporation,
reflecting a drop in stock markets, and a decline of ¥15.8 billion due to the
recognition of impairment in investments.

Non-current receivables, less unearned interest as of September 30, 2012
totaled ¥546.2 billion, an increase of ¥92.0 billion from ¥454.2 billion as of
March 31, 2012. Major components included an increase of the loan to Codelco’s
subsidiary for ¥146.7 billion (excluding a foreign exchange translation loss
of ¥1.9 billion); a decline of ¥12.2 billion mainly due to a collection of
loan to Grace Ocean Private Limited, a ship-owning company; and a decline of
¥7.7 billion (excluding a foreign exchange translation loss of ¥4.2 billion)
at PT. Bussan Auto Finance (Indonesia).

Net property and equipment as of September 30, 2012 totaled ¥1,309.9 billion,
an increase of ¥54.0 billion from ¥1,255.9 billion as of March 31, 2012. Major
components included an increase of ¥42.6 billion (including a foreign exchange
translation loss of ¥9.3 billion) at the Marcellus and Eagle Ford shale
gas/oil projects in the United States and an increase of ¥20.3 billion
(including a foreign exchange translation loss of ¥11.8 billion) at iron ore
mining projects in Australia.

Long-term debt less current maturities as of September 30, 2012 was ¥2,790.3
billion, a decline of ¥107.9 billion from ¥2,898.2 billion as of March 31,
2012. This was mainly due to a reclassification to current maturities at
Mitsui, Multigrain AG and Mitsui & Co. (U.S.A.), Inc.

Total Mitsui & Co., Ltd. shareholders’ equity as of September 30, 2012 was
¥2,603.3 billion, a decline of ¥38.0 billion from ¥2,641.3 billion as of March
31, 2012. The major component of the decline was a net decline of ¥114.0
billion in foreign currency translation adjustments mainly due to depreciation
of the Brazilian real, US dollar and Australian dollar against the Japanese
yen, and a net decline of ¥37.9 billion in unrealized holding gains on
available-for-sale securities. Meanwhile, retained earnings increased by
¥117.2 billion.

As a result, the equity-to-asset ratio as of September 30, 2012 was 29.2%,
down 0.1% from 29.3% as of March 31, 2012. Net interest-bearing debt, or
interest-bearing debt less cash and cash equivalents and time deposits as of
September 30, 2012 was ¥2,439.6 billion, an increase of ¥296.8 billion from
¥2,142.8 billion as of March 31, 2012. The net debt-to-equity ratio (DER) as
of September 30, 2012 was 0.94 times, 0.13 points higher compared to 0.81
times as of March 31, 2012.

2) Cash Flows

Cash Flows from Operating Activities

Net cash provided by operating activities for the six-month period ended
September 30, 2012 was ¥227.1 billion, an increase of ¥135.6 billion from
¥91.5 billion for the corresponding six-month period of the previous year.
Major components of net cash provided by operating activities were our
operating income of ¥134.3 billion, dividend income of ¥86.2 billion,
including dividends received from associated companies, and net cash inflow of
¥6.8 billion from a decline in working capital, or changes in operating assets
and liabilities.

Compared with the corresponding six-month period of the previous year, while
operating income declined by ¥60.4 billion and dividend income declined by
¥4.5 billion, net cash flow from increases and decreases in working capital
improved by ¥194.8 billion.

Cash Flows from Investing Activities

Net cash used in investing activities for the six-month period ended September
30, 2012 was ¥522.7 billion, an increase of ¥290.7 billion from ¥232.0 billion
for the corresponding six-month period of the previous year. The net cash used
in investing activities consisted of:

  * Net outflows of cash that corresponded to investments in and advances to
    associated companies (net of sales of investments in and collection of
    advances to associated companies) were ¥193.7 billion. The major cash
    outflows were an acquisition of 16.95% stake in Inversiones Mineras Acrux
    SpA for ¥85.9 billion; an additional investment in Japan Australia LNG
    (MIMI) Pty. Ltd. for ¥85.7 billion; and investments in and loans to FPSO
    leasing businesses for Brazilian deepwater oil exploration for ¥10.7
    billion; and an acquisition of a 49.9% stake in National Plant and
    Equipment Pty Ltd. for ¥9.8 billion. The major cash inflows was the
    partial sales of its shares in Nihon Unisys, Ltd. for ¥11.4 billion.
  * Net inflows of cash that corresponded to other investments (net of sales
    and redemption of other investments) were ¥11.0 billion. Cash inflows
    mainly consisted of a ¥17.2 billion capital redemption from Sakhalin
    Energy Investment Company Ltd.
  * Net outflows of cash that corresponded to long-term loan receivables (net
    of collection) were ¥136.4 billion. Increases in long-term loan mainly
    consisted of the loan to Codelco’s subsidiary for ¥146.7 billion. The
    major cash inflows was a collection of loan for ¥11.1 billion from Grace
    Ocean Private Limited, a ship-owning company.
  * Net outflows of cash relating to purchases of property leased to others
    and property and equipment (net of sales of those assets) were ¥201.5
    billion. Major expenditures included:

       * Marcellus and Eagle Ford shale gas/oil projects in the United States
         for ¥64.5 billion;
       * Oil and gas projects other than the shale gas/oil projects for a
         total of ¥44.0 billion;
       * Iron ore mining projects in Australia for ¥42.0 billion;
       * Leased rolling stock for ¥14.8 billion; and
       * Coal mining projects in Australia for ¥11.5 billion.

Free cash flow, or the sum of net cash provided by operating activities and
net cash used in investing activities, for the six-month period ended
September 30, 2012 was a net outflow of ¥295.6 billion.

Cash Flows from Financing Activities

For the six-month period ended September 30, 2012, net cash provided by
financing activities was ¥179.4 billion, an increase of ¥88.8 billion from net
cash provided by financing activities of ¥90.6 billion for the corresponding
six-month period of the previous year. The cash outflows from payments of cash
dividends were ¥51.1 billion. The net cash inflow from the borrowing of
short-term debt was ¥152.7 billion and the net cash inflow from the borrowing
of long-term debt was ¥78.7 billion.

In addition to the changes discussed above, there was a decline in cash and
cash equivalents of ¥20.4 billion due to foreign exchange translation; as a
result, cash and cash equivalents as of September 30, 2012 totaled ¥1,294.6
billion, a decline of ¥136.5 billion from ¥1,431.1 billion as of March 31,
2012.

2. Management Policy

(1) Result and Forecast for Investment and Loan Plan

To realize our Long-term Management Vision “Dynamic Evolution as a 21st
Century Global Business Enabler” announced in March 2009, we are accelerating
our move and building a strong earnings base that would enable us to grow
continuously and stably. The investment and loan plan–our plan focusing on the
acquisition of high-quality assets as well as enhancing the competitiveness of
and recycling our existing assets—is one important element to accomplish this.

During the six-month period ended September 30, 2012, we executed investments
and loans in an amount of ¥600 billion and we collected ¥90 billion through
the recycling of our existing assets and investments. In August 2012, we
agreed with Corporación Nacional del Cobre de Chile (“Codelco”) to jointly own
the 29.5% shares of Anglo American Sur S.A. (“Anglo Sur”) and to provide a
loan to Codelco; and accordingly investment and loan of US$ 3 billion
(approximately ¥233 billion) was executed. Since this transaction was not
included in our original annual investment and loan plan for this fiscal year,
the amount of investments and loans for the Metals business area will be
significantly greater than the plan. Since other business areas including
Energy are expecting to execute investments and loans that were not included
in the original plan as well, we anticipate the total amount of investments
and loans for this fiscal year to largely exceed the planned investment and
loan amount of ¥800 billion. Resulting from this one-time cash outflow due to
the execution of a large-scale, high-quality project that is in line with our
strategy to strengthen our earnings base, a large deficit in our free cash
flow is predicted, but we will maintain our efforts to improve the quality of
our portfolio by further reinforcing our investment discipline and enhancing
recycling of assets, and will continue to work on initiatives to achieve a
continuous and stable trend of positive free cash flow. Due to the cash
outflow connected to the above-mentioned large-scale investment and loan
project, net DER rose to 0.94 times as of September 30, 2012 and is forecasted
to be on the rise as described above, despite our expectation of about 0.7
times level.

Details by each business area are as follows:

In Metals, to strengthen the earnings base by acquiring high quality upstream
assets and enhancing the competitiveness of existing assets, we have continued
on with proactive investments. Investments of ¥42.0 billion were made in
connection with the further growth of the Australian iron ore projects. With
the above mentioned loan to Codelco and the cash outflow for the joint
investment to Anglo Sur, the investments and loans amount of the Metals
business area is expected to significantly exceed the original plan of ¥200
billion.

In Machinery & Infrastructure, we expanded the rolling stock leasing business
in Brazil and Europe, made investments in the mining equipment rental business
in Australia, and invested in a gas distribution business in Mexico. In the
field of marine energy, investment was made in the construction of FPSO for
the Pre-Salt Oil Field off Brazil. In the same area, operation of the
Ultra-Deepwater Drillship commenced. We will continue on with the expansion of
our earnings base through participation in large projects including IPP
businesses as well as the field of marine energy.

In Chemicals, due to the challenging environment, the pace of investment
remained low. On the other hand, start-ups of past investments have been
progressing as planned such as joint ventures with The Dow Chemical Company.

In Energy, equity share output of oil and gas increased steadily through the
¥64.5 billion investment in the two shale gas projects in the United States
and the ¥44.0 billion investment to projects other than shale gas, including
expansion of the Thailand project owned by Mitsui Oil Exploration Co., Ltd.
and projects in Australia owned by Mitsui E&P Australia Pty Limited. This
business area also invested ¥85.7 billion for the acquisition of the working
interest of the Browse LNG Project in Australia. In addition, it announced the
acquisition of interests of an oil and gas concession in the UK North Sea from
BP p.l.c., in an effort to further enhance the competitiveness of its
portfolio. ¥11.5 billion is invested for the further growth of the coal
business in Australia, and the investments and loans amount for this business
area for the current fiscal year are expected to exceed the original plan of
¥250 billion. On the other hand, divestitures are being carried out, including
the capital redemption of ¥17.2 billion from Sakhalin Energy Investment
Company Ltd.

In Lifestyle, we agreed to a 10% participation in Sodrugestvo Group S.A., the
largest oilseed crusher in Russia that possesses grain export facilities to
promote the global grain strategy and strengthen other food resources
businesses. We also participated in the building development project in
Singapore in aiming to strengthen the business in consumer goods and services
market in the emerging countries, and acquired senior living businesses in the
United States where the operating environment is relatively stable.

In Innovation & Cross Function, steady progress of past investments and
optimization of our portfolio is being pursued. The IT business unit sold the
entire 5.3% share it holds in T-Gaia Corporation, and transferred 18.9% of the
27.8% shares in Nihon Unisys, Ltd. to Dai Nippon Printing Co., Ltd.

(2) Forecasts for the Year Ending March 31, 2013

1) Revised forecasts for the year ending March 31, 2013

We assume foreign exchange rates for the six-month period ending March 31,
2013 (2nd half) will be ¥80/US$, ¥80/AU$ and ¥40/BRL, while average foreign
exchange rates for the six-month period ended September 30, 2012 (1st half)
were ¥78.97/US$, ¥80.77/AU$ and ¥39.21/BRL. Also, we assume the annual average
crude oil price applicable to our financial results for the year ending March
31, 2013 will be US$111/barrel, down US$2 from US$113/barrel applied for the
original forecast, based on the assumption that the crude oil price (JCC) will
be maintained at US$100/barrel throughout the six-month period ending March
31, 2013.

Gross profit for the year ending March 31, 2013 is expected to be ¥780.0
billion, a decline of ¥90.0 billion from the original forecast, due to
declines in prices of iron ore and coal and economic slowdown. Equity in
earnings of associated companies is expected to be ¥190.0 billion, mainly due
to declines in price of iron ore and sales volume of copper.

As a result, net income attributable to Mitsui & Co., Ltd. for the year ending
March 31, 2013 is expected to be ¥310.0 billion, a decline of ¥90.0 billion
compared with the original forecast.

The forecast for annual operating results by operating segment compared to the
original forecast is described as follows:

                                  Year ending      Year ending

                                  March 31,        March 31,
(Billions of yen)                 2013             2013             Change    

                                  Revised          Original
                                  Forecast         Forecast
Iron & Steel Products             3.0              9.0              (6.0)     
Mineral & Metal Resources         100.0            135.0            (35.0)    
Machinery & Infrastructure        17.0             22.0             (5.0)     
Chemicals                         2.0              10.0             (8.0)     
Energy                            130.0            140.0            (10.0)    
Lifestyle                         13.0             13.0             0.0       
Innovation & Cross Function       9.0              9.0              0.0       
Americas                          17.0             15.0             2.0       
Europe, the Middle East and       0.0              3.0              (3.0)     
Africa
Asia Pacific                      27.0             34.0             (7.0)     
All Other/Adjustments and         (8.0)            10.0             (18.0)    
Eliminations
Consolidated total                310.0            400.0            (90.0)    
                                                                            

  * The projected net income attributable to Mitsui & Co., Ltd. from the Iron
    & Steel Products Segment for the year ending March 31, 2013 is ¥3.0
    billion, a decline of ¥6.0 billion from the original forecast. We
    considered the sluggish steel market conditions reflecting the economic
    slowdown as well as the impairment losses on securities recognized in the
    six-month period ended September 30, 2012.
  * The projected net income attributable to Mitsui & Co., Ltd. from the
    Mineral & Metal Resources Segment is ¥100.0 billion, a decline of ¥35.0
    billion from the original forecast. The primary reasons for the decline
    are a decrease in iron ore prices and production volume at Compañía Minera
    Doña Inés de Collahuasi. Meanwhile, we took into consideration the
    positive impact of the deferred commitment fee related to the loan to
    Codelco; a gain on reclassification of Vale Nouvelle-Calédonie S.A.S. in
    which SUMIC Nickel Netherlands B.V. is expected to reduce its ownership
    interest; and an increase in sales volume of iron ore.
  * Projected net income attributable to Mitsui & Co., Ltd. from the Machinery
    & Infrastructure Segment is ¥17.0 billion, a decline of ¥5.0 billion from
    the original forecast. Motorcycle-related businesses in Indonesia and the
    gas distribution business in Brazil which is affected by the weaker
    Brazilian real are expected to post declines in profits. Meanwhile, mining
    and construction machinery-related businesses in the emerging economies
    are expected to record a solid performance.
  * Projected net income attributable to Mitsui & Co., Ltd. from the Chemicals
    Segment is ¥2.0 billion, a decline of ¥8.0 billion from the original
    forecast, reflecting sluggish market conditions and underperforming
    trading activities.
  * Projected net income attributable to Mitsui & Co., Ltd. from the Energy
    Segment is ¥130.0 billion, a decline of ¥10.0 billion from the original
    forecast. The main cause of the decline is the decrease in coal prices.
  * Projected net income attributable to Mitsui & Co., Ltd. from the Lifestyle
    Segment is ¥13.0 billion, the same level as originally forecasted. We
    counted certain gains on sales of securities, while a deterioration in
    earnings of Multigrain A.G. reflecting the drought in Brazil and the
    impairment loss on investment in listed associated company were recorded
    in the six-month period ended September 30, 2012.
  * The projected net income attributable to Mitsui & Co., Ltd. from the
    Innovation & Cross Function Segment is ¥9.0 billion, the same level as
    originally forecasted. We expect earnings growth for IT related affiliates
    and gains on sales of securities and a profit decline for Mitsui & Co.
    Commodity Risk Management Ltd. due to the underperforming commodity
    derivatives trading.
  * Projected net income attributable to Mitsui & Co., Ltd. from the Americas
    Segment is ¥17.0 billion, an increase of ¥2.0 billion from the original
    forecast, due to a solid performance of subsidiaries especially in the
    chemicals and steel area. Projected net income attributable to Mitsui &
    Co., Ltd. from the Europe, the Middle East and Africa Segment is ¥0.0
    billion, a decline of ¥3.0 billion from the original forecast, reflecting
    the downturn in the economies in these regions. Projected net income
    attributable to Mitsui & Co., Ltd. from the Asia Pacific Segment is ¥27.0
    billion, a decline of ¥7.0 billion from the original forecast, due to
    declines in this segment’s portion of net incomes of subsidiaries of the
    Mineral & Metal Resources and Energy segments, reflecting a decline in
    commodity prices.
  * Projected net loss attributable to Mitsui & Co., Ltd. from All
    Other/Adjustments and Eliminations Segment is ¥8.0 billion, a
    deterioration of ¥18.0 billion from the original forecast. Adjustments and
    Eliminations are expected to include impairment losses on securities and
    income taxes which are not allocated to each operating segment.

2) Key commodity prices and other parameters for the year ending March 31,
2013

The table below shows assumptions for key commodity prices and other
parameters for the projected net income attributable to Mitsui & Co., Ltd. for
the year ending March 31, 2013. Effects of price movements for each commodity
on annual net income attributable to Mitsui & Co., Ltd. are included in the
table.

March 2012                                           March 2013
             Impact on Net Income attributable to                     March 2013
(Original    Mitsui & Co., Ltd.                      (Revised
Forecast)                                            Forecast)
             for the Year ending March 31, 2013
(Announced                                           (Announced       1^st Half   2^nd Half
in May       (Announced in May 2012)                 in                          
2012)                                                November         (Result)    (Assumption)
                                                     2012)
110                      Crude                       107              114         100
                         Oil/JCC        ¥1.2 bn
                         Consolidated   (US$1/bbl)
113                      Oil                         111              117         105
             Commodity   Price(*1)
(*2)                     Iron Ore       ¥1.9 bn      (*2)         <   124.5(*3)   (*2)
                                        (US$1/ton)
7,625                    Copper         (*4)         7,794            8,087(*5)   7,500(*6)
8.5                      Nickel         ¥1.8 bn      8.0              8.4(*5)     7.5(*6)
                                        (US$1/lb)
80                       USD            ¥1.6 bn      79.49            78.97       80
                                        (¥1/USD)
85           Forex       AUD            ¥1.9 bn      80.39            80.77       80
             (*7)                       (¥1/AUD)
45                       BRL            ¥0.8 bn      39.61            39.21       40
                                        (¥1/BRL)
                                                                                 

(*1) the oil price trend is reflected in net income with a 0-6 month time lag.
We assume the annual average price applicable to our financial results as the
Consolidated Oil Price based on the estimation: 6 month time lag, 12%; 3 month
time lag, 62%; no time lag, 26%.

(*2) We refrain from disclosing the iron ore price assumptions.

(*3) Average of representative reference prices (Fine, 62% Fe CFR North China)
during April 2012 to September 2012

(*4) We refrain from disclosing the copper price sensitivity to net income.

(*5) Average of LME cash settlement price during January 2012 to June 2012
(Copper: US$/MT, Nickel: US$/lb)

(*6) Price assumption for October 2012 to December 2012 (Copper: US$/MT,
Nickel: US$/lb)

(*7) Impact of currency fluctuation on net income of overseas subsidiaries and
associated companies (denomination in functional currency) against the
Japanese yen

(3) Shareholder Return Policy

In order to increase corporate value and maximize shareholder value, we have
sought to maintain an optimal balance between (a) meeting investment demand in
areas that are our core strengths and growth largely through re-investments of
our retained earnings, and (b) directly providing returns to shareholders by
paying out cash dividends based on a target dividend payout ratio of
consolidated net income.

For the two-year period of the Medium-term Management Plan to March 2014,
while we principally aim for a steady increase in dividends through
improvements in corporate performance, we will also consider more flexible
compensation to the shareholders, provided that sufficient retained earnings
for future business development is secured. Considering the strengthening of
our financial standings that has been accomplished through the execution of
our previous Medium-term Management Plan, we have set our minimum target
dividend payout ratio at 25%. For the year ending March 31, 2013, we have
decided to set the dividend payout ratio at 25%.

Since the establishment of our Medium-term Management Plan to March 2014, the
level of uncertainty for the global economy has risen significantly, as the
financial crisis in Europe affected the global commercial trade and flow of
capital, causing the growth rates of the emerging economies to moderate. We
also anticipate our free cash flow to show a large deficit caused by the
execution of large-scale investments and loans including the provision of loan
to Codelco and the cash outflow in connection with the joint possession of
Anglo American Sur S.A. shares with Codelco. Considering these factors and
reviewing our dividend payout policy, as we have announced at the beginning of
this fiscal year, for the year ending March 31, 2013, we plan to pay the
annual dividend based on the dividend payout ratio of 25%.

As to the dividend for the year ending March 31, 2013, reflecting the
previously mentioned downward revision that we have made on our forecasts for
the year ending March 31, 2013, we have decided to pay an interim dividend of
¥22 per share, a ¥5 per share decrease from the corresponding six-month period
of the previous year. For the year ending March 31, 2013, we currently
envisage an annual dividend of ¥43 per share (including the interim dividend
of ¥22 per share), a ¥12 per share decrease from the year ended March 31,
2012, based on our revised forecast of annual consolidated net income
attributable to Mitsui & Co., Ltd. of ¥310.0 billion and the dividend payout
ratio of 25%.

We will continue to review the shareholder return policy taking into
consideration the business environment, future investing activity trends, free
cash flow and interest-bearing debt levels, and return on equity.

3. Other Information

Notice:

This flash report contains forward-looking statements about Mitsui and its
consolidated subsidiaries. These forward-looking statements are based on
Mitsui’s current assumptions, expectations and beliefs in light of the
information currently possessed by it and involve known and unknown risks,
uncertainties and other factors. Such risks, uncertainties and other factors
may cause Mitsui’s actual consolidated financial position, consolidated
operating results or consolidated cash flows to be materially different from
any future consolidated financial position, consolidated operating results or
consolidated cash flows expressed or implied by these forward-looking
statements.

These risks, uncertainties and other factors include, among others, (1)
economic downturns worldwide or at specific regions, (2) fluctuations in
commodity prices, (3) fluctuations in exchange rates, (4) credit risks from
clients with which Mitsui and its consolidated subsidiaries have business
transactions or financial dealings and/or from various projects, (5) declines
in the values of assets for which Mitsui and its consolidated subsidiaries act
as lessors, (6) changes in the financing environment, (7) declines in market
value of equity and/or debt securities, (8) changes in evaluation in
connection to the establishment of valuation allowances, (9) inability to
successfully restructure or eliminate subsidiaries or associated companies as
planned, (10) unsuccessful joint ventures and strategic investments, (11)
risks of resource related businesses not developing in line with assumed costs
and schedules and uncertainty in reserves and performance of third party
operators, (12) loss of opportunities to enter new business areas due to
limitations on business resources, (13) environmental laws and regulations,
(14) changes in laws and regulations or unilateral changes in contractual
terms by governmental entities, (15) employee misconduct, (16) failure to
maintain adequate internal control over financial reporting, and (17) climate
change and natural disaster. For further information on the above, please
refer to Mitsui’s Annual Securities Report.

Forward-looking statements may be included in Mitsui’s Annual Securities
Report and Quarterly Securities Reports or in its other disclosure documents,
press releases or website disclosures. Mitsui undertakes no obligation to
publicly update or revise any forward-looking statements.

4. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Millions of Yen)
Assets
                                                 March 31,       September 30,
                                                                
                                                 2012            2012
                                                                
Current Assets:
Cash and cash equivalents                        ¥ 1,431,112     ¥ 1,294,574
Time deposits                                    4,130           5,312
Marketable securities                            1,087           998
Trade receivables:
Notes and loans, less unearned interest          322,585         272,001
Accounts                                         1,616,191       1,484,922
Associated companies                             116,885         91,385
Allowance for doubtful receivables               (17,860)        (13,905)
Inventories                                      515,758         562,288
Advance payments to suppliers                    129,987         143,069
Deferred tax assets―current                      37,513          33,864
Derivative assets                                53,664          56,903
Other current assets                             215,271         204,074
Total current assets                             4,426,323       4,135,485
Investments and Non-current Receivables:
Investments in and advances to associated        1,709,082       1,856,343
companies
Other investments                                792,492         703,352
Non-current receivables, less unearned           454,191         546,192
interest
Allowance for doubtful receivables               (36,840)        (34,082)
Property leased to others―at cost, less          272,746         271,896
accumulated depreciation
Total investments and non-current                3,191,671       3,343,701
receivables
Property and Equipment―at Cost:
Land, land improvements and timberlands          202,834         204,020
Buildings, including leasehold improvements      401,451         410,399
Equipment and fixtures                           1,306,754       1,373,675
Mineral rights                                   158,967         152,627
Vessels                                          42,539          39,549
Projects in progress                             152,789         180,572
Total                                            2,265,334       2,360,842
Accumulated depreciation                         (1,009,451)     (1,050,949)
Net property and equipment                       1,255,883       1,309,893
Intangible Assets, less Accumulated              110,307         102,360
Amortization
Deferred Tax Assets―Non-current                  15,626          15,888
Other Assets                                     12,013          11,916
                                                                  
Total                                            ¥ 9,011,823     ¥ 8,919,243
                                                                  

(Millions of Yen)
Liabilities and Equity
                                              March 31, 2012     September 30,
                                                                 2012
                                                                
Current Liabilities:
                                                                  
Short-term debt                               ¥ 307,132          ¥ 440,009
Current maturities of long-term debt          372,657            509,171
Trade payables:
Notes and acceptances                         53,308             46,378
Accounts                                      1,342,343          1,280,493
Associated companies                          110,289            97,825
Accrued expenses:
Income taxes                                  73,111             63,026
Interest                                      16,619             14,577
Other                                         93,266             71,126
Advances from customers                       106,787            109,019
Derivative liabilities                        65,262             47,890
Other current liabilities                     83,256             69,218
Total current liabilities                     2,624,030          2,748,732
Long-term Debt, less Current Maturities       2,898,218          2,790,301
Accrued Pension Costs and Liability for       55,799             55,274
Severance Indemnities
Deferred Tax Liabilities―Non-current          283,614            232,561
Other Long-Term Liabilities                   289,352            267,589
Equity:
Common stock                                  341,482            341,482
Capital surplus                               430,491            429,280
Retained earnings:
Appropriated for legal reserve                65,500             69,284
Unappropriated                                2,192,494          2,305,948
Accumulated other comprehensive income
(loss):
Unrealized holding gains and losses on        90,476             52,599
available-for-sale securities
Foreign currency translation adjustments      (380,457)          (494,511)
Defined benefit pension plans                 (68,163)           (66,470)
Net unrealized gains and losses on            (24,302)           (28,129)
derivatives
Total accumulated other comprehensive         (382,446)          (536,511)
loss
Treasury stock, at cost                       (6,203)            (6,205)
Total Mitsui & Co., Ltd. shareholders'        2,641,318          2,603,278
equity
                                                                  
Noncontrolling interests                      219,492            221,508
Total equity                                  2,860,810          2,824,786
                                                                  
Total                                         ¥ 9,011,823        ¥ 8,919,243
                                                                  

(2) Statements of Consolidated Income and Comprehensive Income (Loss)

Statements of Consolidated Income

(Millions of Yen)
                                   Six-month period        Six-month period
                                   ended                   ended

                                    September 30, 2011      September 30, 2012
Revenues :                                                
Sales of products                  ¥ 2,383,790             ¥ 2,117,701
Sales of services                  180,238                 185,434
Other sales                        65,002                  62,763
Total revenues                     2,629,030               2,365,898
                                                            
Total Trading Transactions :
Six-month period ended
September 30, 2011, ¥
5,233,587 million
Six-month period ended
September 30, 2012, ¥
4,992,679 million
                                                            
Cost of Revenues :
Cost of products sold              (2,078,032)             (1,866,548)
Cost of services sold              (68,044)                (76,850)
Cost of other sales                (29,028)                (29,526)
Total cost of revenues             (2,175,104)             (1,972,924)
Gross Profit                       453,926                 392,974
Other Expenses (Income) :
Selling, general and               254,345                 251,480
administrative
Provision for doubtful             4,906                   7,219
receivables
Interest expense - net             2,408                   6,263
Dividend income                    (38,947)                (46,386)
Gain on sales of securities -      (11,928)                (15,664)
net
Loss on write-down of              15,377                  18,361
securities
Gain on disposal or sales of       (1,391)                 (1,516)
property and equipment - net
Impairment loss of long-lived      2,117                   224
assets
Impairment loss of goodwill        1,860                   -
Other (income) expenses - net      (6,461)                 12,691
Total other expenses (income)      222,286                 232,672
Income before Income Taxes and     231,640                 160,302
Equity in Earnings
Income Taxes                       109,136                 77,625
Income before Equity in            122,504                 82,677
Earnings
Equity in Earnings of              123,994                 97,338
Associated Companies - Net
                                                            
Net Income before Attribution      246,498                 180,015
of Noncontrolling Interests
Net Income Attributable to         (19,237)                (11,678)
Noncontrolling Interests
Net Income Attributable to         ¥ 227,261               ¥ 168,337
Mitsui & Co., Ltd.
                                                            

Statements of Consolidated Comprehensive Income (Loss)

(Millions of Yen)
                                         Six-month period     Six-month period
                                         ended                ended
                                                             
                                          September 30,        September 30,
                                         2011                 2012
Net Income before Attribution of         ¥ 246,498            ¥ 180,015
Noncontrolling Interests
Other Comprehensive Income (Loss)
(after income tax effect):
Unrealized holding losses on             (47,626)             (41,079)
available-for-sale securities
Foreign currency translation             (220,179)            (120,210)
adjustments
Defined benefit pension plans            2,155                1,680
Net unrealized losses on derivatives     (9,273)              (3,885)
Total Other Comprehensive Loss           (274,923)            (163,494)
(after income tax effect)
Comprehensive (Loss) Income before
Attribution of                           (28,425)             16,521
Noncontrolling Interests
Comprehensive Income Attributable to     (4,321)              (2,372)
Noncontrolling Interests
Comprehensive (Loss) Income              ¥ (32,746)           ¥ 14,149
Attributable to Mitsui & Co., Ltd.
                                                               

(3) Statements of Consolidated Cash Flows

(Millions of Yen)
                                     Six-month period       Six-month period
                                     ended                  ended
                                     September 30, 2011     September 30, 2012
Operating Activities:                                      
Net income before attribution of     ¥ 246,498              ¥ 180,015
noncontrolling interests
Adjustments to reconcile net
income before attribution of
noncontrolling
interests to net cash provided
by operating activities:
Depreciation and amortization        69,532                 88,203
Pension and severance costs,         6,319                  5,417
less payments
Provision for doubtful               4,906                  7,219
receivables
Gain on sales of securities -        (11,928)               (15,664)
net
Loss on write-down of securities     15,377                 18,361
Gain on disposal or sales of         (1,391)                (1,516)
property and equipment - net
Impairment loss of long-lived        2,117                  224
assets
Impairment loss of goodwill          1,860                  -
Deferred income taxes                18,463                 (4,486)
Equity in earnings of associated
companies, less dividends            (72,259)               (57,494)
received
Changes in operating assets and
liabilities:
(Increase) decrease in trade         (3,347)                167,662
receivables
Increase in inventories              (65,274)               (66,237)
Decrease in trade payables           (40,883)               (72,800)
Payment for the settlement of
the oil spill incident in the
Gulf of Mexico                       (86,105)               -
Other - net                          7,630                  (21,816)
Net cash provided by operating       91,515                 227,088
activities
Investing Activities:
Net increase in time deposits        (533)                  (2,070)
Net increase in investments in
and advances to associated           (60,135)               (193,659)
companies
Net (increase) decrease in other     (14,534)               10,959
investments
Net decrease (increase) in           976                    (136,398)
long-term loan receivables
Net increase in property leased
to others and property and           (157,760)              (201,524)
equipment
Net cash used in investing           (231,986)              (522,692)
activities
Financing Activities:
Net increase in short-term debt      32,848                 152,665
Net increase in long-term debt       109,387                78,714
Transactions with noncontrolling     (2,372)                (820)
interest shareholders
Purchases of treasury stock -        (7)                    (2)
net
Payments of cash dividends           (49,286)               (51,111)
Net cash provided by financing       90,570                 179,446
activities
Effect of Exchange Rate Changes      (47,338)               (20,380)
on Cash and Cash Equivalents
Net Decrease in Cash and Cash        (97,239)               (136,538)
Equivalents
Cash and Cash Equivalents at         1,441,059              1,431,112
Beginning of Period
Cash and Cash Equivalents at End     ¥ 1,343,820            ¥ 1,294,574
of Period
                                                             

(4) Assumption for Going Concern : None

(5) Significant Changes in Shareholders' Equity : None

(6) Operating Segment Information

Six-month period ended September 30, 2011 (from April 1, 2011 to   (As restated)
September 30, 2011)
(Millions of Yen)
               Iron &     Mineral &   Machinery &      Chemicals   Energy      Lifestyle      Innovation &
               Steel      Metal
               Products   Resources   Infrastructure                                          Cross
                                                                                              Function
                                                                                               
Revenues       95,244     300,419     140,961          479,597     796,299     373,063        79,892
Gross Profit   22,363     110,068     43,707           34,543      108,546     60,969         25,764
Operating
Income         5,612      99,177      (5,079)          6,603       86,413      10,936         (8,670)
(Loss)
Equity in
Earnings
(Losses)
of             1,660      82,696      22,847           1,888       24,798      3,568          (19,085)
Associated
Companies
-Net
Net Income
(Loss)
Attributable   4,544      111,756     10,044           7,661       87,399      13,574         (24,100)
to Mitsui &
Co., Ltd.
Total Assets
at September   482,541    1,008,802   1,248,572        647,743     1,439,005   1,203,729      608,907
30, 2011
                                                                                               
                                                                                               
                          Europe,
                          the
               Americas   Middle      Asia Pacific     Total       All Other   Adjustments    Consolidated
                          East
                          and                                                  and            Total
                          Africa                                               Eliminations
                                                                                               
Revenues       265,036    63,424      33,856           2,627,791   1,241       (2)            2,629,030
Gross Profit   38,612     8,804       6,190            459,566     202         (5,842)        453,926
Operating
Income         13,662     (812)       (1,602)          206,240     (2,818)     (8,747)        194,675
(Loss)
Equity in
Earnings
(Losses)
of             2,475      477         2,504            123,828     -           166            123,994
Associated
Companies
-Net
Net Income
(Loss)
Attributable   10,345     (516)       25,827           246,534     1,693       (20,966)       227,261
to Mitsui &
Co., Ltd.
Total Assets
at September   411,230    97,995      236,318          7,384,842   2,818,768   (1,791,933)    8,411,677
30, 2011
                                                                                               

Six-month period ended September 30, 2012 (from April 1, 2012 to September 30, 2012)
(Millions of Yen)
               Iron &     Mineral &   Machinery &      Chemicals   Energy      Lifestyle      Innovation &
               Steel      Metal
               Products   Resources   Infrastructure                                          Cross
                                                                                              Function
                                                                                               
Revenues       83,636     256,771     164,636          337,508     701,010     389,512        82,444
Gross Profit   18,065     75,547      46,727           33,070      97,505      53,520         28,437
Operating
Income         225        57,700      (7,176)          3,089       70,259      (1,807)        (8,892)
(Loss)
Equity in
Earnings of
Associated     1,094      35,281      13,830           4,008       22,767      5,499          9,506
Companies
-Net
Net Income
(Loss)
Attributable   (790)      49,682      8,960            (931)       78,863      4,849          5,949
to Mitsui &
Co., Ltd.
Total Assets
at September   487,606    1,278,862   1,232,961        630,162     1,675,961   1,243,210      578,287
30, 2012
                                                                                               
                                                                                               
                          Europe,
                          the
               Americas   Middle      Asia Pacific     Total       All Other   Adjustments    Consolidated
                          East
                          and                                                  and            Total
                          Africa                                               Eliminations
                                                                                               
Revenues       271,941    48,226      29,255           2,364,939   959         0              2,365,898
Gross Profit   33,872     7,265       5,204            399,212     450         (6,688)        392,974
Operating
Income         8,069      (1,930)     (2,354)          117,183     (2,306)     19,398         134,275
(Loss)
Equity in
Earnings of
Associated     2,020      191         3,071            97,267      -           71             97,338
Companies
-Net
Net Income
(Loss)
Attributable   8,806      (501)       16,805           171,692     508         (3,863)        168,337
to Mitsui &
Co., Ltd.
Total Assets
at September   415,271    88,895      252,459          7,883,674   3,492,563   (2,456,994)    8,919,243
30, 2012
                                                                                               

Notes:

1. "All Other" includes business activities which primarily provide services,
such as financing services and operations services to external customers
and/or to the companies and associated companies. Total assets of "All Other"
at September 30, 2011 and 2012 consisted primarily of cash and cash
equivalents and time deposits related to financing activities, and assets of
certain subsidiaries related to the above services.

2. Transfers between operating segments are made at cost plus a markup.

3. Net Income (Loss) Attributable to Mitsui & Co., Ltd. of "Adjustments and
Eliminations" includes income and expense items that are not allocated to
specific reportable operating segments, and eliminations of intersegment
transactions.

4. During the three-month period ended June 30, 2012, the companies changed
the headquarters’ cost allocation system from partial allocation to full
allocation to the operating segments in order to make business judgments which
reflect the current cost structure.

The effect of this change was a decrease in the Operating Income (Loss) and
the Net Income (Loss) Attributable to Mitsui & Co., Ltd. for the six-month
period ended September 30, 2012 as follows:

(Millions of Yen)
               Iron &     Mineral &   Machinery &      Chemicals   Energy    Lifestyle   Innovation
               Steel      Metal                                                          &
               Products   Resources   Infrastructure                                     Cross
                                                                                         Function
Operating
Income         (980)      (5,429)     (3,732)          (2,292)     (5,141)   (3,800)     (1,980)
(Loss)
Net Income
(Loss)
Attributable   (730)      (4,045)     (2,780)          (1,707)     (3,830)   (2,831)     (1,475)
to Mitsui &
Co., Ltd.
                                                                                          

5. During the three-month period ended June 30, 2012, “Foods & Retail” Segment
and the Consumer Service Business Unit that were included in the “Consumer
Service & IT” Segment were aggregated into the “Lifestyle” Segment for the
purpose of strengthening initiatives in our business geared towards consumer
products and the service market in Japan and the emerging economies’ consumers
that are expected to expand.

Additionally, the “Logistics & Financial Business” Segment and the IT Business
Unit that were included in the “Consumer Service & IT” Segment were aggregated
into the “Innovation & Cross Function” Segment. This new segment provides the
functions of financing, logistics and IT & process development for the purpose
of reinforcing the entire companies’ earnings base. This segment will also
pursue the creation of new businesses with its sights set on the next
generation.

In accordance with this change, the operating segment information for the
six-month period ended September 30, 2011, has been restated to conform to the
current period presentation.

6. During the three-month period ended June 30, 2012, “Machinery &
Infrastructure Project” Segment changed its name to “Machinery &
Infrastructure”.

7. Operating Income (Loss) reflects the companies' a) Gross Profit, b)
Selling, general and administrative expenses, and c) Provision for doubtful
receivables as presented in the Statements of Consolidated Income.

For diagram omitted, please see our
homepage.(http://www.mitsui.com/jp/en/ir/library/meeting/2013/index.html)

Contact:

Mitsui & Co Ltd
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