Mitsui & Co Ltd: 1st Quarter Results

  Mitsui & Co Ltd: 1st Quarter Results

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 Three-Month Period Ended June 30, 2014                                
[IFRS]
                                                            
Tokyo, August 6, 2014 - Mitsui & Co., Ltd. announced its consolidated financial results for the three-month period ended June
30, 2014, based on International Financial Reporting Standards ("IFRS").
                                                                                                                                 
                                                                                                                                 
Mitsui & Co., Ltd. and
subsidiaries
(Web Site :
http://www.mitsui.com/jp/en/)
                                                                                                                                 
President and Chief Executive
Officer : Masami Iijima
Investor Relations Contacts : Michihiro Nose, General Manager, Investor Relations Division TEL 81-3-3285-7533
                                                                                                                                 
1. Consolidated financial
results (Unreviewed)
(1) Consolidated operating results information for the three-month period ended
June 30, 2014
    (from April 1, 2014 to
    June 30, 2014)
                                                                         
                                                        Three-month period ended June 30,
                                                                                                           
                                                        2014                            2013                       
                                                          %                            %   
Revenue                    Millions of yen   1,370,526            △        1,407,293            -   
                                                                                2.6
Profit before income           Millions of yen   173,134              △        191,712              -   
taxes                                                                           9.7
Profit for the               Millions of yen   133,530              △        139,264              -   
period                                                                          4.1
Profit for the period attributable    Millions of yen   127,806              △        132,968              -   
to owners of the parent                                                         3.9
Comprehensive income for          Millions of yen   129,254              △        131,685              -   
the period                                                                      1.8
Earnings per share attributable to    Yen            71.30                          72.85             
owners of the parent, basic
Earnings per share attributable to   Yen        71.30                  -                  
owners of the parent, diluted
Notes:
1. Percentage figures for Revenue, Profit before income taxes, Profit for the period, Profit for the period attributable to
owners of the parent, and Comprehensive income for the period represent changes from the previous year.


2. Diluted earnings per share attributable to owners of the parent for the three-month period ended June 30, 2013 is not
disclosed as there are no dilutive potential shares.


                                                                                                                                 
(2) Consolidated financial
position information
                                                                     
                                                        June 30, 2014                 March 31, 2014
                                                                                   
Total                      Millions of yen   11,582,231                   11,491,319              
assets
Total                      Millions of yen   4,164,731                    4,100,304               
equity
Total equity attributable to        Millions of yen   3,878,556                    3,815,767               
owners of the parent
Equity attributable to owners      %          33.5                       33.2                   
of the parent ratio
                                                                                                                                 
2. Dividend
information
                                                                            
                                                                                                                      Year
                                                                                                                      ending
                                                        Year ended March 31,                                      March 31,
                                                                                                                      2015
                                                                                                                      (Forecast)
                                      2015                       2014                         
Interim dividend per           Yen                                     25                           32
share
Year-end dividend per          Yen                                     34                           32
share
Annual dividend per           Yen                            59                        64
share

                                                   
3. Forecast of consolidated operating results for the year ending March 31, 2015
(from April 1, 2014 to March 31, 2015)
                                     
                                                                         Year
                                                                         ending

                                                                         March
                                                                         31,
                                                                         2015
                                               
Profit attributable to                        Millions of     380,000
owners of the parent                                     yen
Earnings per share attributable                    Yen           211.99
to owners of the parent, basic
Note
:
We maintain our forecast profit attributable to owners of the parent for the
year ending March 31, 2015 of ¥380.0 billion announced
together with the results of fiscal year ended March 2014. No updates have been
made to this forecast.
                                                                                 
4.
Others
(1) Increase/decrease of important
subsidiaries during the period : None
                                                                                 
(2) Number of
shares:
                                     
                    June 30, 2014         March 31, 2014
                                               
Number of shares of common stock     1,796,514,127         1,829,153,527
issued, including treasury stock
Number of shares of          4,004,166          36,641,439
treasury stock
                                               
                    Three-month period      Three-month period
                                     ended June 30, 2014     ended June 30, 2013
                                               
Average number of shares of       1,792,511,039      1,825,124,974
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.
                                                                                 
A Cautionary Note on
Forward-Looking Statements:
This report contains forward-looking statements including those concerning
future performance of Mitsui & Co., Ltd. ("Mitsui"), and those
statements are based on Mitsui's current assumptions, expectations and beliefs
in light of the information currently possessed by it. Various factors
may cause Mitsui's actual results to be materially different from any future
performance expressed or implied by these forward-looking statements.
Therefore, these statements do not constitute a guarantee by Mitsui that such
future performance will be realized.
For cautionary notes with respect to forward-looking statements, please refer to
the "Notice" section on p.16.
                                                                                 
Supplementary materials and IR
meeting on financial results:
Supplementary materials on financial results
can be found on our web site.
We will hold an IR meeting on financial results for analysts and institutional
investors on August 6, 2014.
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………………………………………………………………………………………2

(3) Financial Condition and Cash Flows……………………………………………………………………10

(4) Information Concerning Profit Forecast for the Year Ending March 31,
2015…………………………14

2. Other Information…………………………………………………………………………………………14

3. Condensed Consolidated Financial Statements

(1) Condensed Consolidated Statements of Financial
Position........................................................................15

(2) Condensed Consolidated Statements of Income and Comprehensive
Income...........................................17

(3) Condensed Consolidated Statements of Changes in
Equity.......................................................................18

(4) Condensed Consolidated Statements of Cash
Flows..................................................................................19

(5) Assumption for Going
Concern..................................................................................................................19

(6) Segment
Information...................................................................................................................................20

1. Qualitative Information

As of the date of disclosure of this quarterly earnings report, the review
procedures for quarterly financial statements in accordance with the Financial
Instruments and Exchange Act are in progress.

(1) Operating Environment

The following is an overview of the operating environment for the three-month
period ended June 30, 2014, and afterwards.

On the whole, advanced nations experienced economic recovery and disinflation
while emerging nations experienced economic slowdown and high inflation, with
gaps between the two becoming notable in terms of the economy and prices.

Although the U.S. economy suffered a greater-than-expected fall in GDP from
January to March due to a severe cold snap, economic fundamentals remained
strong as evidenced by steady employment growth, an upturn in the housing
market, the wealth effect generated by higher stock prices, and robust
corporate earnings. These effects are expected to gradually accelerate U.S.
economic growth throughout the second half of the year.

In the Japanese economy, the increased demand prior to the consumption tax
hike in April 2014 exceeded previous forecast and there has been consequent
downturn in demand from April. Even so, the resultant economic slowdown is
forecast to be only temporary mainly due to strong employment and income
environment, yen depreciation, and higher stock prices.

In Europe, although the economy has finally bottomed out, economic growth is
expected to remain low for the time being reflecting a continuation in the
harsh employment situation, heightened deflation concerns due to a substantial
gap between supply and demand, and a slump in domestic demand.

In China, government policies that take into account both avoiding economic
downturn through fiscal measures and structural reforms are continuing.
Although an economic upturn seems unlikely, China is forecast to maintain a
certain degree of economic growth in the future.

Looking at other emerging nations, currencies and stock prices strengthened
due to eased concerns about a dramatic outflow of funds following the start of
scaling back by the U.S. of its third round of quantitative easing (QE3), but
slowness in improvement of economic fundamentals such as current account
deficits, fiscal deficits and inflation remains a cause for concern.

Turning to current conditions in commodities markets, prices softened due to
persistent concerns about a fall in the economic growth rate of China. The
spot reference price for iron ore CFR North China (Fe 62%) temporarily fell
below the US$90-per-ton level in June. Although the Dubai Crude spot price
rose at some points due to heightened geopolitical risks such as problems in
Iraq, the price remained stable around US$105 per barrel.

The global economy faces risk factors including slower economic growth in
China, heightened geopolitical risks, and the outflow of funds from emerging
countries affected by U.S. monetary policy. Nevertheless, we believe that
economic growth in the U.S. and other advanced nations will contribute to pull
the global economy out of the standstill it experienced in the first half of
the year, and the recovery will gradually gain momentum.

(2) Results of Operations

1) Analysis of Consolidated Income Statements

Revenue

Mitsui & Co., Ltd. (“Mitsui”) and its subsidiaries (collectively “we”)
recorded total revenue of ¥1,370.5 billion for the three-month period ended
June 30, 2014 (“current period”), a decline of ¥36.8 billion from ¥1,407.3
billion for the corresponding three-month period of the previous year
(“previous period”).

  *Revenue from sales of products for the current period was ¥1,238.0
    billion, a decline of ¥47.5 billion from ¥1,285.5 billion for the previous
    period, as a result of the following:
  *The Energy Segment reported a decline of ¥98.4 billion. The sale of Mitsui
    Oil Co., Ltd. resulted in a decline of ¥74.1 billion and petroleum trading
    operations recorded a decline of ¥65.0 billion due to a decline in trading
    volume. Meanwhile, oil and gas producing operations recorded an increase
    of ¥18.2 billion reflecting higher gas prices in the United States and
    increased production volume. MMGS Inc., a gas distribution subsidiary in
    the United States, also reported an increase of ¥12.3 billion due to an
    increase in sales volume.
  *The Iron & Steel Products Segment reported a decline of ¥9.2 billion.
    Transactions of line pipe to LNG projects had been almost shipped by the
    end of the previous year and trading volume of other steel products also
    declined.
  *The Americas Segment reported an increase of ¥55.5 billion due to an
    increase in trading volume of soybean.
  *Revenue from rendering of services for the current period was ¥100.7
    billion, the same amount as the previous period.
  *Other revenue for the current period was ¥31.8 billion, an increase of
    ¥10.7 billion from ¥21.1 billion for the previous period. The commodity
    derivatives trading business at Mitsui recorded an increase in other
    revenue corresponding to a deterioration of ¥9.8 billion in the foreign
    exchange gains and losses posted in other expenses.

Gross Profit

Gross profit for the current period was ¥210.4 billion, a decline of ¥0.9
billion from ¥211.3 billion for the previous period.

  *The Innovation & Corporate Development Segment reported an increase of
    ¥12.0 billion. The commodity derivatives trading business at Mitsui
    recorded an increase in gross profit corresponding to a deterioration of
    ¥9.8 billion in the foreign exchange gains and losses posted in other
    expense.
  *The Mineral & Metal Resources Segment reported a decline of ¥4.8 billion.
    Iron ore mining operations in Australia reported a decline of ¥5.2 billion
    due to lower iron ore prices, which was partially offset by an increase in
    income from infrastructure usage and an increase in sales volume.
  *The Iron & Steel Products Segment reported a decline of ¥4.3 billion.
    Transactions of line pipe to LNG projects had been almost shipped by the
    end of the previous year and trading volume of other steel products also
    declined.

Other Income (Expenses)

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the current period were
¥139.2 billion, a decline of ¥1.6 billion from ¥140.8 billion for the previous
period. The table below provides a breakdown of selling, general and
administrative expenses used for our internal review.

Gain on securities and other investments—net

Gain on securities and other investments for the current period was ¥1.2
billion, a decline of ¥10.2 billion from ¥11.4 billion for the previous
period.

  *There were miscellaneous small transactions for the current period.
  *For the previous period, an ¥8.4 billion gain was recorded due to a
    reversal of impairment loss on shares in Penske Automotive Group, Inc.,
    reflecting a rise in the share price.

Impairment Loss of Fixed Assets

Impairment loss of fixed assets for the current period was ¥0.0 billion, a
decline of ¥0.1 billion from ¥0.1 billion for the previous period. There were
miscellaneous small transactions in both periods.

Gain on Disposal or Sales of Fixed Assets—Net

Gain on disposal or sales of fixed assets for the current period was ¥0.5
billion, an increase of ¥0.4 billion from ¥0.1 billion for the previous
period. There were miscellaneous small transactions in both periods.

Other Expense—Net

Other expense for the current period was ¥1.6 billion, an increase of ¥1.3
billion from ¥0.3 billion for the previous period.

  *For the current period, exploration expenses totaled ¥4.4 billion,
    including those recorded at oil and gas producing businesses.
  *For the previous period, exploration expenses totaled ¥6.3 billion,
    including those recorded at oil and gas producing businesses. Furthermore,
    the Innovation & Corporate Development Segment recorded foreign exchange
    gains of ¥8.9 billion in the commodity derivatives trading business at
    Mitsui, which corresponded to related gross profit in the same segment.

Finance Income (Costs)

Interest Income

Interest income for the current period was ¥8.4 billion, an increase of ¥3.0
billion from ¥5.4 billion for the previous period.

Dividend Income

Dividend income for the current period was ¥41.0 billion, a decline of ¥8.8
billion from ¥49.8 billion for the previous period.

  *Dividends from six LNG projects (Sakhalin II, Qatargas 1, Abu Dhabi, Oman,
    Qatargas 3 and Equatorial Guinea) were ¥29.1 billion in total, a decline
    of ¥12.4 billion from ¥41.5 billion for the previous period, due to a
    decline in dividends received from the Sakhalin II project.
  *Dividends from preferred shares in JA Mitsui Leasing Ltd. increased by
    ¥4.0 billion.

Interest Expense

Interest expense for the current period was ¥11.7 billion, a decline of ¥0.5
billion from ¥12.2 billion for the previous period. The following table
provides the month-end average of three-month Tibor for the Japanese yen and
three-month Libor for the U.S. dollar for the both periods.

             Current Period  Previous Period
Japanese yen   0.21%            0.23%
U.S. dollar   0.23%           0.27%

Share of Profit of Investments Accounted for Using the Equity Method

Share of profit of investments accounted for using the equity method for the
current period was ¥64.3 billion, a decline of ¥2.8 billion from ¥67.1 billion
for the previous period.

  *Valepar S.A. reported a decline of ¥4.0 billion, reflecting lower iron ore
    prices and impairment losses on assets related to an iron ore mine in
    Guinea and a coal mine in Australia owned.
  *For the previous period, Arch Pharmalabs Limited, a pharmaceutical
    contract manufacturer in India, posted a ¥4.2 billion impairment loss on
    fixed assets and other assets.

Income Taxes

Income taxes for the current period were ¥39.6 billion, a decline of ¥12.8
billion from ¥52.4 billion for the previous period. Profit before income taxes
for the current period was ¥173.1 billion, a decline of ¥18.6 billion from
¥191.7 billion for the previous period. In response, applicable income taxes
also declined.

The effective tax rate for the current period was 22.9%, a decline of 4.5%
from 27.4% for the previous period. The major factor for the decline was a
decrease in the ratio of income tax effect related to equity accounting
against profit before income taxes.

Profit for the Period

As a result of the above factors, profit for the period was ¥133.5 billion, a
decline of ¥5.8 billion from ¥139.3 billion for the previous period.

Profit for the Period Attributable to Owners of the Parent

Profit for the period attributable to owners of the parent was ¥127.8 billion,
a decline of ¥5.2 billion from ¥133.0 billion for the previous period.

2) EBITDA

We use EBITDA as a measure of underlying earning power from the current
period.

EBITDA is the total of “gross profit,” “selling, general and administrative
expenses,” “dividend income” and “share of profit of investments accounted for
using the equity method” from the consolidated states of income and
“depreciation and amortization” from the consolidated statements of cash
flows.

(Billions of Yen)                               Current   Previous  Change
                                                 Period     Period
EBITDA (a+b+c+d+e) (*1)                          244.2      240.1      +4.1
  Gross profit                            a   210.4      211.3      (0.9)
    Selling, general and administrative      b   (139.2)    (140.8)    +1.6
    expenses
    Dividend Income                          c   41.0       49.8       (8.8)
    Profit of equity method investments      d   64.3       67.1       (2.8)
    (*2)
  Depreciation and amortization           e  67.7      52.7      +15.0

*1 M ay not match with the total of items due to rounding off. The same shall
apply hereafter.

*2 “Profit of equity method investments” means “share of profit of investments
accounted for using the equity method” in the consolidated statements of
income. The same shall apply hereafter.

3) Operating Results by Operating Segment

Iron & Steel Products Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            2.1       7.3        (5.2)
      Gross profit                               10.1      14.4       (4.3)
       Selling, general and administrative        (9.6)     (9.4)      (0.2)
       expenses
       Dividend Income                            0.8       0.5        +0.3
       Profit of equity method investments        0.5       1.4        (0.9)
      Depreciation and amortization              0.3       0.3        0.0
Profit for the period attributable to owners of  1.0      3.0       (2.0)
the parent

EBITDA declined by ¥5.2 billion, mainly due to the following factors:

Gross profit declined by ¥4.3 billion. Transactions of line pipe to LNG
projects had been almost shipped by the end of the previous year and trading
volume of other steel products also declined.

Profit of equity method investments declined by ¥0.9 billion.

Profit for the period attributable to owners of the parent declined by ¥2.0
billion. In addition to the above-mentioned factors, foreign exchange losses
corresponding to transactions of line pipe declined by ¥1.9 billion.

Mineral & Metal Resources Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            71.3      76.1       (4.8)
      Gross profit                               45.0      49.8       (4.8)
       Selling, general and administrative        (10.0)    (10.4)     +0.4
       expenses
       Dividend Income                            0.5       0.3        +0.2
       Profit of equity method investments        21.9      26.6       (4.7)
      Depreciation and amortization              13.8      10.0       +3.8
Profit for the period attributable to owners of  38.7     39.6      (0.9)
the parent

EBITDA declined by ¥4.8 billion, mainly due to the following factors:

Gross profit declined by ¥4.8 billion reflecting an impact from lower iron ore
prices on iron ore mining operations in Australia.

As for iron ore pricing, the majority of contract prices applied to products
sold during the current period were based on pricing that more closely
reflects current spot reference prices, the same pricing as applied in the
previous year, such as a daily average of spot reference prices for the
current quarter of shipments and a daily average of spot reference prices for
the shipment month.

Mitsui Iron Ore Development Pty. Ltd. reported a decline of ¥5.1 billion in
gross profit, reflecting lower iron ore prices, which was partially offset by
an increase in income from infrastructure usage and an increase in sales
volume owing to increased capacity.

Profit of equity method investments declined by ¥4.7 billion. Valepar S.A.
posted ¥8.4 billion of profit, a decline of ¥4.0 billion from ¥12.4 billion
for the previous period, reflecting lower iron ore prices and impairment
losses on assets related to an iron ore mine in Guinea and a coal mine in
Australia.

Depreciation and amortization increased by ¥3.8 billion. Iron ore mining
operations in Australia reported an increase of ¥3.6 billion.

Profit for the period attributable to owners of the parent declined by ¥0.9
billion.

Machinery & Infrastructure Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            16.5      14.0       2.5
       Gross profit                             27.4      27.7       (0.3)
         Selling, general and administrative      (31.9)    (31.2)     (0.7)
         expenses
         Dividend Income                          1.3       1.2        +0.1
         Profit of equity method investments      15.0      11.9       +3.1
        Depreciation and amortization            4.7       4.4        +0.3
Profit for the period attributable to owners of  11.6     9.8       +1.8
the parent

EBITDA increased by ¥2.5 billion, mainly due to the following factors:

Gross profit declined by ¥0.3 billion.

  *The Infrastructure Projects Business Unit reported the same amount as the
    previous period.
  *The Integrated Transportation Systems Business Unit reported a decline of
    ¥0.3 billion.

Profit of equity method investments increased by ¥3.1 billion.

  *The Infrastructure Projects Business Unit reported a decline of ¥0.1
    billion. IPP businesses posted profit of ¥6.3 billion in total, a decline
    of ¥1.6 billion from ¥7.9 billion for the previous period. A decline of
    ¥3.0 billion was caused by the one-time negative factor related to
    deferred tax recorded in the current period. Meanwhile, mark-to-market
    valuation gains and losses, such as those on long-term power derivative
    contracts and long-term fuel purchase contracts, improved by ¥1.8 billion
    to a gain of ¥2.1 billion from ¥0.3 billion for the previous period.
  *The Integrated Transportation Systems Business Unit reported an increase
    of ¥3.2 billion. Automotive-related business in North America achieved a
    solid performance.

Profit for the period attributable to owners of the parent increased by ¥1.8
billion. In addition to the above-mentioned factors, in the previous period,
this segment recorded a ¥6.7 billion gain due to a reversal of impairment loss
on shares in Penske Automotive Group, Inc., reflecting a rise in the share
price.

Chemicals Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            6.1       7.9        (1.8)
       Gross profit                             18.5      20.3       (1.8)
         Selling, general and administrative      (16.7)    (16.7)     0.0
         expenses
         Dividend Income                          0.5       0.7        (0.2)
         Profit of equity method investments      1.5       1.5        0.0
        Depreciation and amortization            2.3       2.1        +0.2
Profit for the period attributable to owners of  2.6      3.9       (1.3)
the parent

EBITDA declined by ¥1.8 billion, mainly due to the following factors:

Gross profit declined by ¥1.8 billion.

  *The Basic Chemicals Business Unit reported an increase of ¥0.1 billion.
  *The Performance Chemicals Business Unit reported a decline of ¥1.9
    billion. P.T. Kaltim Pasifik Amoniak, an ammonia producer in Indonesia,
    reported a decline of ¥3.1 billion due to a shutdown at the end of
    previous year as a result of an asset transfer under the
    build-operate-transfer (BOT) contract.

Profit of equity method investments was the same amount as the previous
period.

Profit for the period attributable to owners of the parent declined by ¥1.3
billion.

Energy Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            119.5     121.1      (1.6)
       Gross profit                             52.9      50.2       +2.7
         Selling, general and administrative      (13.7)    (15.0)     +1.3
         expenses
         Dividend Income                          30.0      42.7       (12.7)
         Profit of equity method investments      13.7      16.6       (2.9)
        Depreciation and amortization            36.6      26.7       +9.9
Profit for the period attributable to owners of  56.7     64.7      (8.0)
the parent

EBITDA declined by ¥1.6 billion yen, mainly due to the following factors:

The weighted average crude oil prices applied to our operating results for the
current period and the previous period were estimated to be US$111 and US$112
per barrel, respectively.

Gross profit increased by ¥2.7 billion, primarily due to the following
factors:

  *Mitsui E&P USA LLC reported an improvement of ¥6.0 billion, reflecting
    higher gas prices in the United States.
  *Mitsui E&P Australia Pty Limited reported an improvement of ¥5.2 billion
    due to a reversal of declined production during the previous period
    associated with refurbishment of its oil production facility.
  *A decline of ¥3.1 billion was recorded from LNG transactions.

Dividend income decreased by ¥12.7 billion due to a decline in dividends
received from the Sakhalin II project. Dividends from six LNG projects
(Sakhalin II, Qatargas 1, Abu Dhabi, Oman, Qatargas 3 and Equatorial Guinea)
were ¥29.1 billion in total, a decline of ¥12.4 billion from ¥41.5 billion for
the previous period.

Profit of equity method investments declined by ¥2.9 billion.

Depreciation and amortization increased by ¥9.9 billion. Oil and gas producing
operations recorded an increase of ¥10.3 billion.

Profit for the period attributable to owners of the parent declined by ¥8.0
billion. In addition to the above, exploration expenses of ¥4.0 billion in
total and ¥6.0 billion in total were recorded for the current period and the
previous period, respectively.

Lifestyle Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            2.8       3.4        (0.6)
       Gross profit                             26.3      27.9       (1.6)
         Selling, general and administrative      (35.3)    (31.5)     (3.8)
         expenses
         Dividend Income                          2.5       2.5        0.0
         Profit of equity method investments      6.2       1.8        +4.4
        Depreciation and amortization            3.1       2.7        +0.4
Profit for the period attributable to owners of  0.2      (1.1)     +1.3
the parent

EBITDA declined by ¥0.6 billion, mainly due to the following factors:

Gross profit declined by ¥1.6 billion.

  *The Food Resources Business Unit reported a decline of ¥0.4 billion.
  *The Food Products & Services Business Unit recorded a decline of ¥0.8
    billion
  *The Consumer Service Business Unit reported a decline of ¥0.4 billion.

Selling, general and administrative expenses increased by ¥3.8 billion due to
increases in Multigrain Trading AG and new subsidiaries.

Profit of equity method investments increased by ¥4.4 billion.

  *The Food Resources Business Unit reported the same amount as the previous
    period.
  *The Food Products & Services Business Unit reported a decline of ¥0.1
    billion.
  *The Consumer Service Business Unit reported an increase of ¥4.6 billion.
    Arch Pharmalabs Limited, a pharmaceutical contract manufacturer in India,
    posted a ¥4.2 billion impairment loss on fixed assets and other assets for
    the previous period.

Profit for the period attributable to owners of the parent increased by ¥1.3
billion.

Innovation & Corporate Development Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            0.9       (11.9)     +12.8
        Gross profit                            9.5       (2.5)      +12.0
          Selling, general and administrative     (15.4)    (15.5)     +0.1
          expenses
          Dividend Income                         4.3       0.5        +3.8
          Profit of equity method investments     1.2       4.2        (3.0)
         Depreciation and amortization           1.3       1.3        0.0
Loss for the period attributable to owners of    (0.9)    (1.7)     +0.8
the parent

EBITDA increased by ¥12.8 billion, mainly due to the following factors:

Gross profit increased by ¥12.0 billion. There was an increase in gross profit
corresponding to a ¥9.8 billion deterioration of foreign exchange gains and
losses related to the commodity derivatives trading business at Mitsui posted
in other expense for the current period and for the previous period.

Dividend income increased by ¥3.8 billion. Dividends from preferred shares in
JA Mitsui Leasing Ltd. increased by ¥4.0 billion.

Profit of equity method investments declined by ¥3.0 billion due to a decline
in profit of JA Mitsui Leasing Ltd.

Loss for the period attributable to owners of the parent improved by ¥0.8
billion. In addition to the above-mentioned factors, for the current period
and for the previous period, foreign exchange losses of ¥0.9 billion and gains
of ¥8.9 billion, respectively, were posted in other expense in relation to the
commodity derivatives trading business at Mitsui.

Americas Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            7.5       7.8        (0.3)
       Gross profit                             18.4      19.4       (1.0)
         Selling, general and administrative      (15.2)    (15.3)     + 0.1
         expenses
         Dividend Income                          0.0       0.0        0.0
         Profit of equity method investments      2.3       1.7        +0.6
        Depreciation and amortization            2.1       1.9        +0.2
Profit for the period attributable to owners of  5.8      5.0       +0.8
the parent

EBITDA declined by ¥0.3 billion, mainly due to the following factors:

Gross profit declined by ¥1.0 billion.

Profit of equity method investments increased by ¥0.6 billion.

Profit for the period attributable to owners of the parent increased by ¥0.8
billion.

Europe, the Middle East and Africa Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            (0.2)     (0.3)      +0.1
       Gross profit                             4.3       4.3        0.0
         Selling, general and administrative      (5.0)     (4.9)      (0.1)
         expenses
         Dividend Income                          0.0       0.0        0.0
         Profit of equity method investments      0.4       0.1        +0.3
        Depreciation and amortization            0.1       0.2        (0.1)
Profit for the period attributable to owners of  1.1      0.4       +0.7
the parent

EBITDA increased by ¥0.1 billion, mainly due to the following factors:

Gross profit was the same as the previous period.

Profit of equity method investments increased by ¥0.3 billion.

Profit for the period attributable to owners of the parent increased by ¥0.7
billion.

Asia Pacific Segment

(Billions of Yen)                                Current  Previous  Change
                                                  Period    Period
EBITDA                                            0.5       0.7        (0.2)
       Gross profit                             2.9       3.5        (0.6)
         Selling, general and administrative      (4.6)     (4.5)      (0.1)
         expenses
         Dividend Income                          0.4       0.6        (0.2)
         Profit of equity method investments      1.7       1.0        +0.7
        Depreciation and amortization            0.2       0.1        +0.1
Profit for the period attributable to owners of  10.3     10.7      (0.4)
the parent

EBITDA declined by ¥0.2 billion, mainly due to the following factors:

Gross profit declined by ¥0.6 billion.

Profit of equity method investments increased by ¥0.7 billion.

Profit for the period attributable to owners of the parent declined by ¥0.4
billion. In addition to the above, this segment recorded profit from the
segment’s minority interest in iron ore mining and coal mining operations in
Australia.

(3) Financial Condition and Cash Flows

1) Financial Condition

Total assets as of June 30, 2014 were ¥11,582.2 billion, an increase of ¥90.9
billion from ¥11,491.3 billion as of March 31, 2014.

Total current assets as of June 30, 2014 were ¥4,496.3 billion, an increase of
¥30.9 billion from ¥4,465.4 billion as of March 31, 2014. Inventories
increased by ¥51.3 billion, mainly due to a seasonal increase at Multigrain
Trading AG. As of June 30, 2014, assets of ¥122.1 billion and liabilities of
¥61.8 billion were transferred to the assets held for sale and liabilities
directly associated with assets held for sale accounts, respectively, due to
the planned merger of domestic construction steel and metal scrap businesses
of Mitsui & Co., Steel Ltd. with Metal One Structural Steel & Resource
Corporation.

Total current liabilities as of June 30, 2014 were ¥2,945.5 billion, a decline
of ¥39.2 billion from ¥2,984.7 billion as of March 31, 2014. Current portion
of long-term debt declined by ¥51.7 billion due to repayment, while short-term
debt increased by ¥31.7 billion.

As a result, working capital, or current assets less current liabilities, as
of June 30, 2014, totaled ¥1,550.8 billion, an increase of ¥70.1 billion from
¥1,480.7 billion as of March 31, 2014.

Total non-current assets as of June 30, 2014 totaled ¥7,085.9 billion, an
increase of ¥60.0 billion from ¥7,025.9 billion as of March 31, 2014, mainly
due to the following factors:

  *Investments accounted for using the equity method as of June 30, 2014 was
    ¥2,520.2 billion, an increase of ¥71.4 billion from ¥2,448.8 billion as of
    March 31, 2014. A major factor was an increase of ¥70.1 billion due to an
    acquisition of a 20% stake in VLI S.A., which is engaged in integrated
    freight transportation in Brazil.

Furthermore, factors that do not involve cash flow included a decline of ¥19.3
billion resulting from foreign currency exchange fluctuations despite a net
increase of ¥4.6 billion corresponding to the profit of equity method (net of
¥59.7 billion in dividends received from equity accounted companies).

  *Other investments as of June 30, 2014 were ¥1,558.1 billion, an increase
    of ¥3.4 billion from ¥1,554.7 billion as of March 31, 2014, mainly due to
    the following factors:

- A ¥25.1 billion net increase due to valuation on financial assets measured
at FVTOCI; and

- A ¥10.8 billion net decline due to foreign currency exchange fluctuations.

  *Property, plant and equipment as of June 30, 2014 totaled ¥2,023.8
    billion, an increase of ¥16.3 billion from ¥2,007.5 billion as of March
    31, 2014, mainly due to an increase of ¥9.9 billion (including a foreign
    exchange translation gain of ¥1.3 billion) at iron ore mining operations
    in Australia.

Total non-current liabilities as of June 30, 2014 totaled ¥4,472.0 billion, an
increase of ¥65.6 billion from ¥4,406.4 billion as of March 31, 2014.
Long-term debt, less current portion as of June 30, 2014 was ¥3,550.2 billion,
an increase of ¥81.9 billion from ¥3,468.3 billion as of March 31, 2014,
mainly due to an increase in long-term borrowings at the Marcellus and Eagle
Ford shale gas and oil producing operations in the United States.

Total equity attributable to owners of the parent as of June 30, 2014 was
¥3,878.6 billion, an increase of ¥62.8 billion from ¥3,815.8 billion as of
March 31, 2014. Major components included:

  *Treasury stock declined by ¥50.1 billion, due to a cancellation;
  *Retained earnings increased by ¥15.4 billion which was partially offset by
    a payment of dividend and a cancellation of treasury stock; and
  *Other components of equity as of June 30, 2014 declined by ¥2.7 billion to
    ¥763.9 billion from ¥766.6 billion as of March 31, 2014, mainly due to the
    following factors:

- Foreign currency translation adjustments declined by ¥12.9 billion,
reflecting the depreciation of the U.S. dollar against the Japanese yen; and

- Financial assets measured at FVTOCI increased by ¥14.8 billion reflecting
the higher stock prices.

Net interest-bearing debt, or interest-bearing debt less cash and cash
equivalents and time deposits as of June 30, 2014 was ¥3,230.7 billion, an
increase of ¥51.9 billion from ¥3,178.8 billion as of March 31, 2014. The net
debt-to-equity ratio (DER) as of June 30, 2014 was 0.83 times, the same level
as March 31, 2014.

2) Cash Flows

Cash Flows from Operating Activities

(Billions of Yen)                  Current Period  Previous Period  Change
Cash flows from operating    a     130.1            82.8              +47.3
activities
Cash flows from change in     b     (71.1)           (103.8)           +32.7
working capital
Core operating cash flow      a-b   201.2            186.6             +14.6

Net cash provided by operating activities for the current period was ¥130.1
billion, an increase of ¥47.3 billion from ¥82.8 billion for the previous
period.

Net cash outflow from an increase in working capital, or changes in operating
assets and liabilities for the current period was ¥71.1 billion, a decline of
¥32.7 billion from ¥103.8 billion for the previous period.

Core operating cash flow, cash flows from operating activities without the net
cash outflow from an increase in working capital, for the current period
amounted ¥201.2 billion, an increase of ¥14.6 billion from ¥186.6 billion for
the previous period.

  *Depreciation and amortization for the current period was ¥67.7 billion, an
    increase of ¥15.0 billion from ¥52.7 billion for the previous period.
  *Net cash inflow from dividend income, including dividends received from
    equity accounted investees, for the current period totaled ¥98.2 billion,
    a decline of ¥2.2 billion from ¥100.4 billion for the previous period.

The following table shows core operating cash flow by operating segment.

(Billions of Yen)                  Current Period  Previous Period  Change
Iron & Steel Products               1.9              3.0               (1.1)
Mineral & Metal Resources           51.4             46.2              +5.2
Machinery & Infrastructure          14.4             8.2               +6.2
Chemicals                           7.1              10.8              (3.7)
Energy                              97.9             100.1             (2.2)
Lifestyle                           (0.1)            3.6               (3.7)
Innovation & Corporate              2.5              (0.5)             +3.0
Development
Americas                            7.3              4.2               +3.1
Europe, the Middle East and         0.2              (3.0)             +3.2
Africa
Asia Pacific                        2.3              1.2               +1.1
All Other and Adjustments and       16.3             12.8              +3.5
Eliminations
Consolidated Total                 201.2           186.6            +14.6

Cash Flows from Investing Activities

Net cash used in investing activities for the current period was ¥151.4
billion, a decline of ¥21.1 billion from ¥172.5 billion for the previous
period. The net cash used in investing activities consisted of:

  *Net cash outflows that corresponded to investments in and advances to
    equity accounted investees (net of sales of investments and collection of
    advances) were ¥64.3 billion. The major cash outflow was an acquisition of
    a 20% stake in VLI S.A. for ¥70.1 billion. The major cash inflow was
    redemption of preferred shares in Valepar S.A. for ¥10.0 billion.
  *Net cash outflows that corresponded to other investments (net of sales and
    maturities of other investments) were ¥5.4 billion.
  *Net cash inflows that corresponded to long-term loan receivables (net of
    collection) were ¥12.7 billion.
  *Net outflows that corresponded to purchases of property, plant, equipment
    and investment property (net of sales of those assets) were ¥79.4 billion.
    Major expenditures included:
  *Oil and gas projects other than the U.S. shale gas and oil projects for a
    total of ¥30.8 billion;
  *Iron ore mining projects in Australia for ¥20.9 billion; and
  *Marcellus and Eagle Ford shale gas and oil projects in the United States
    for ¥16.7 billion.

The major cash inflows included the sale of an ammonia plant by P.T. Kaltim
Pasifik Amoniak for ¥9.9 billion.

Free cash flow, or the sum of net cash provided by operating activities and
net cash used in investing activities, for the current period was a net
outflow of ¥21.3 billion.

Cash Flows from Financing Activities

For the current period, net cash provided by financing activities was
¥20.8billion, an increase of ¥6.5 billion from ¥14.3 billion for the previous
period. The net cash inflow from the borrowing of long-term debt was ¥51.7
billion and short-term debt was ¥36.2 billion. Meanwhile, the cash outflow
from payments of cash dividends were ¥61.0 billion.

In addition to the changes discussed above, there was a decline in cash and
cash equivalents of ¥5.1 billion due to foreign exchange translation and a
decline of ¥0.4 billion due to the reclassification to assets held for sale;
as a result, cash and cash equivalents as of June 30, 2014 totaled ¥1,221.3
billion, a decline of ¥4.2 billion from ¥1,226.3billion as of March 31, 2014.

(4) Information Concerning Profit Forecast for the Year Ending March 31, 2015

We maintain our profit forecast for the year ending March 31, 2015
attributable to owners of the parent of ¥380.0 billion announced together with
the results of the year ended March 31, 2014. No updates have been made to
this forecast.

2. 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 non-current assets, (6) changes in the financing environment,
(7) declines in market value of equity and/or debt securities, (8) changes in
the assessment for recoverability of deferred tax assets, (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.

                                                              
3. Condensed Consolidated
Financial Statements
(1) Condensed Consolidated
Statements of Financial Position
                                          (Millions of
                                                              Yen)
Assets                                                     
                                     March 31,            June 30,
                                                              
                                     2014                 2014
                                                                             
Current
Assets:
         Cash and cash                   ¥                    ¥
         equivalents                     1,226,317            1,221,257
         Trade and other                 2,040,855            1,922,816
         receivables
         Other financial                 271,288              240,027
         assets
         Inventories                     625,328              676,618
         Advance payments                183,576              174,777
         to suppliers
         Assets held                     -                   122,143
         for sale
       Other current            118,049            138,695      
         assets
          Total current        4,465,413       4,496,333   
             assets
Non-current Assets:
         Investments accounted
         for using the equity            2,448,848            2,520,162
         method
         Other                           1,554,673            1,558,135
         investments
         Trade and other                 470,880              440,076
         receivables
         Other financial                 116,298              114,170
         assets
         Property, plant                 2,007,452            2,023,823
         and equipment
         Investment                      139,334              144,255
         property
         Intangible                      144,153              141,067
         assets
         Deferred tax                    74,419               74,084
         assets
         Other
       non-current              69,849             70,126       
         assets
             Total
          non-current           7,025,906          7,085,898    
             assets
          Total             ¥               ¥           
                                         11,491,319           11,582,231

                                                               
                                               (Millions of
                                                               Yen)
Liabilities and                                                
Equity
                                      March 31,            June 30,
                                                               
                                      2014                 2014
                                                                              
                                                                              
Current Liabilities:
        Short-term debt                   ¥ 436,869            ¥ 468,616
        Current portion of                505,946              454,221
        long-term debt
        Trade and other                   1,473,834            1,387,449
        payables
        Other financial                   301,047              293,701
        liabilities
        Income tax                        42,857               42,603
        payables
        Advances from                     165,124              172,659
        customers
        Provisions                        17,491               23,976
        Liabilities directly
        associated with assets held       -                   61,815
        for sale
      Other current              41,486             40,487       
        liabilities
           Total current         2,984,654          2,945,527    
              liabilities
Non-current
Liabilities:
        Long-term debt, less              3,468,301            3,550,163
        current portion
        Other financial                   95,541               92,807
        liabilities
        Retirement benefit                69,558               68,858
        liabilities
        Provisions                        174,855              176,938
        Deferred tax                      567,281              564,603
        liabilities
      Other non-current           30,825             18,604       
        liabilities
              Total
           non-current            4,406,361          4,471,973    
              liabilities
           Total                7,391,015          7,417,500    
              liabilities
Equity:
        Common stock                      341,482              341,482
        Capital surplus                   418,004              415,023
        Retained earnings                 2,345,790            2,364,066
        Other components of               766,631              763,937
        equity
      Treasury stock            -56,140            -5,952       
              Total equity
           attributable to owners     3,815,767          3,878,556    
              of the parent
      Non-controlling             284,537            286,175      
        interests
           Total                4,100,304          4,164,731    
              equity
           Total              ¥               ¥           
                                          11,491,319           11,582,231

(2) Condensed Consolidated
Statements of Income and                                           
Comprehensive Income
                           
  Condensed Consolidated
  Statements of Income
                                            (Millions of
                                                              Yen)
                                     Three-month period   Three-month period
                                     ended                ended

                                     June 30,             June 30,

                                     2013                 2014
                                                                             
                                                                
  Revenue:
               Sale of                   ¥                    ¥
               products                  1,285,483            1,237,992
               Rendering of              100,668              100,715
               services
               Other revenue             21,142               31,819
               Total revenue             1,407,293            1,370,526
  Cost:
               Cost of                   -1,142,202           -1,100,672
               products sold
               Cost of
               services                  -38,538              -44,531
               rendered
               Cost of other             -15,224              -14,934
               revenue
               Total cost                -1,195,964           -1,160,137
  Gross Profit                           211,329              210,389
  Other Income (Expenses):
               Selling,
               general and               -140,781             -139,248
               administrative
               expenses
               Gain (loss) on
               securities and            11,407               1,157
               other
               investments—net
               Impairment loss           -78                  -11
               of fixed assets
               Gain (loss) on
               disposal or sales         54                   475
               of fixed assets—net
               Other income              -291                 -1,588
               (expense)—net
               Total other
               income                    -129,689             -139,215
               (expenses)
  Finance      Loss on
  Income       write-down of
  (Costs):     securities
               Interest income           5,380                8,357
               Dividend income           49,774               40,989
               Interest                  -12,191              -11,706
               expense
               Total finance             42,963               37,640
               income (costs)
  Share of Profit of Investments
  Accounted for Using the Equity         67,109               64,320
  Method
  Profit before Income Taxes             191,712              173,134
  Income Taxes                           -52,448              -39,604
  Profit for the Period                  ¥ 139,264            ¥ 133,530
                                                                             
  Profit for the Period
  Attributable to:
               Owners of the             ¥ 132,968            ¥ 127,806
               parent
               Non-controlling           6,296                5,724
               interests
                                                                
                                                                             
  Condensed Consolidated
  Statements of Comprehensive
  Income
                                            (Millions of
                                                              Yen)
                                     Three-month period   Three-month period
                                     ended                ended

                                     June 30,             June 30,

                                     2013                 2014
                                                                             
                                                                
  Profit for the Period                  ¥ 139,264            ¥ 133,530
  Other Comprehensive Income:
        Items that will not be
        reclassified to profit
        or loss:
               Financial
               assets measured           -371                 23,564
               at FVTOCI
               Remeasurements of
               defined benefit           631                  -1,561
               pension plans
               Share of other
               comprehensive income of
               investments accounted     -464                 2,008
               for using the equity
               method
               Income tax
               relating to               3,887                -6,003
               items not
               reclassified
        Items that may be
        reclassified subsequently
        to profit or loss:
               Foreign
               currency                  -28,684              -2,846
               translation
               adjustments
               Cash flow                 -2,554               -2,684
               hedges
               Share of other
               comprehensive income of
               investments accounted     10,944               -18,754
               for using the equity
               method
               Income tax relating
               to items that may         9,032                2,000
               be reclassified
               Total other
               comprehensive             -7,579               -4,276
               income
  Comprehensive Income for the           ¥ 131,685            ¥ 129,254
  Period
                                                                             
  Comprehensive Income for the
  Period Attributable to:
               Owners of the             ¥ 126,407            ¥ 125,804
               parent
               Non-controlling           5,278                3,450
               interests

Notes:  1.The Statements of Consolidated Income above are not reviewed by
         the auditors.
         2.The Statements of Consolidated Income above have been adjusted due
         to the adoption of ASC 810-10-65.
         3."Net Income attributable to Noncontrolling Interests" and
         "Comprehensive Loss (Income) attributable to
         Noncontrolling Interests" show the amounts deducted to calculate
         "Net Income attributable to Mitsui & Co.,
         Ltd." and "Comprehensive (Loss) Income attributable to Mitsui & Co.,
         Ltd.", respectively.
         4.Tax effects on investments in associated companies which were
         formerly included in "Equity in Earnings of
         Associated Companies - Net (After Income Tax Effect)" are included
         in "Income Taxes" for the three-month
         period ended December 31, 2009. At the same time, "Equity in
         Earnings of Associated Companies - Net (After
         Income Tax Effect)" are changed to "Equity in Earnings of Associated
         Companies - Net." Amounts for three-
         month period ended December 31, 2008 have been reclassified to
         conform to the current period presentation.

(3) Condensed Consolidated Statements of Changes                                                      
in Equity
                                                                          (Millions of Yen)
                    Attributable to owners of the                                         Non-controlling   Total
                  parent                                                             Interests
                                                                                                            Equity
                    Common    Capital   Retained     Other        Treasury
                 Stock    Surplus  Earnings     Components   Stock      Total                         
                                                     of Equity
Balance as at       ¥         ¥         ¥2,060,298   ¥ 614,783    ¥          ¥3,439,141   ¥ 245,848         ¥
April 1, 2013       341,482   428,552                             (5,974)                                   3,684,989
  Profit for                            132,968                              132,968      6,296             139,264
  the period
  Other
  comprehensive                                      (6,561)                 (6,561)      (1,018)           (7,579)
  income for the
  period
Comprehensive
income for the                                                               126,407      5,278             131,685
period
Transaction
with owners:
  Dividends paid
  to the owners
  of the parent                         (38,327)                             (38,327)                       (38,327)

  (per share:
  ¥21)
  Dividends paid
  to
  non-controlling                                                                         (7,302)           (7,302)
  interest
  shareholders
  Acquisition
  of treasury                                                     (4)        (4)                            (4)
  stock
  Sales of
  treasury                              (0)                       0          0                              0
  stock
  Equity
  transactions
  with                        (475)                  3                       (472)        6,189             5,717
  non-controlling
  interest
  shareholders
Transfer to
retained                                6,367        (6,367)                 -                             -
earnings
Balance as at      ¥         ¥         ¥2,161,306   ¥ 601,858    ¥          ¥3,526,745   ¥ 250,013         ¥
June 30, 2013       341,482   428,077                             (5,978)                                   3,776,758
                                                                                                                      
                                                                          (Millions of Yen)
                    Attributable to owners of the                                         Non-controlling   Total
                    parent                                                             Interests
                                                                                                            Equity
                    Common    Capital   Retained     Other        Treasury
                 Stock     Surplus   Earnings     Components   Stock      Total                         
                                                     of Equity
Balance as at       ¥         ¥         ¥2,345,790   ¥ 766,631    ¥          ¥3,815,767   ¥ 284,537         ¥
April 1, 2014       341,482   418,004                             (56,140)                                  4,100,304
  Profit for                            127,806                              127,806      5,724             133,530
  the period
  Other
  comprehensive                                      (2,002)                 (2,002)      (2,274)           (4,276)
  income for the
  period
Comprehensive
income for the                                                               125,804      3,450             129,254
period
Transaction
with owners:
  Dividends paid
  to the owners
  of the parent                         (60,946)                             (60,946)                       (60,946)

  (per share:
  ¥34)
  Dividends paid
  to
  non-controlling                                                                         (4,437)           (4,437)
  interest
  shareholders
  Acquisition
  of treasury                                                     (3)        (3)                            (3)
  stock
  Sales of
  treasury                              0                         0          0                              0
  stock
  Cancellation
  of treasury                           (50,191)                  50,191     -                             -
  stock
  Equity
  transactions
  with                        (2,981)                915                     (2,066)      2,625             559
  non-controlling
  interest
  shareholders
Transfer to
retained                                1,607        (1,607)                 -                             -
earnings
Balance as at     ¥        ¥        ¥2,364,066  ¥ 763,937   ¥         ¥3,878,556  ¥ 286,175        ¥
June 30, 2014       341,482   415,023                             (5,952)                                   4,164,731

(4) Condensed Consolidated Statements of                     
Cash Flows
                           
                                                                              
                                                    (Millions
                                                                  of Yen)
                                                                  Three-month
                                                  Three-month     period
                                             period ended    ended

                                                  June 30, 2013   June 30,
                                                                  2014
Operating Activities:
    Profit for the Period                         ¥ 139,264       ¥ 133,530
    Adjustments to reconcile profit for the
    period to cash flows from operating
    activities:
                  Depreciation and                52,716          67,717
                  amortization
                  Change in retirement            1,144           -2,082
                  benefit liabilities
                  Provision for doubtful          2,795           2,957
                  receivables
                  (Gain)/loss on securities       -11,407         -1,157
                  and other investments—net
                  Impairment loss of fixed        78              11
                  assets
                  (Gain)/loss on disposal
                  or sales of fixed               -54             -475
                  assets—net
                  Finance (income)/costs –        -41,123         -35,846
                  net
                  Income taxes                    52,448          39,604
                  Share of profit of
                  investments accounted for       -67,109         -64,320
                  using equity method
                  Changes in operating
                  assets and liabilities:
                      Change in trade and       203             2,434
                  other receivables
                     Change in                  -48,697         -58,757
                  inventories
                      Change in trade and       -58,254         -4,272
                  other payables
                     Other—net                  2,958           -10,457
                  Interest received               7,172           9,337
                  Interest paid                   -15,202         -11,993
                  Dividends received              100,402         98,157
                Income taxes paid              -34,584        -34,266
                                    Cash
                             flows from       82,750         130,122
                                operating
                                activities
Investing Activities:
    Net change    (Increase)    Decrease
    in time       (increase)    (increase)        794             -14,979
    deposits      in trade      in trade
                  receivables   receivables
    Net change
    in
    investments   (Increase)    (Increase)
    in and        (increase)    in trade          -7,092          -64,323
    advances to   in trade      receivables
    equity        receivables
    accounted
    investees
    Net change    (Increase)    (Increase)
    in other      (increase)    in trade          -84,191         -5,380
    investments   in trade      receivables
                  receivables
    Net change    (Increase)
    in            (increase)    Decrease in
    long-term     in trade      trade             4,261           12,682
    loan          receivables   receivables
    receivables
    Net change
    in
    property,     (Increase)    (Increase)
   plant,        (increase)    in trade         -86,316        -79,376
    equipment     in trade      receivables
    and           receivables
    investment
    property
                                    Cash
                             flows from       -172,544       -151,376
                                investing
                                activities
Financing Activities:
    Net change    (Increase)    Decrease in
    in            (increase)    trade             109,731         36,202
    short-term    in trade      receivables
    debt          receivables
    Net change    (Increase)    (Increase)
    in            (increase)    decrease in       -55,073         51,668
    long-term     in trade      trade
    debt          receivables   receivables
    Purchases and sales of treasury stock         -4              -3
                  (Increase)    (Increase)
    Dividends     (increase)    in trade          -38,334         -60,955
    paid          in trade      receivables
                  receivables
   Transactions with non-controlling            -1,991         -6,082
    interest shareholders
                                    Cash
                             flows from       14,329         20,830
                                financing
                                activities
Effect of Exchange Rate Changes on Cash and       -739            -4,210
Cash Equivalents
Cash and Cash Equivalents Included in            -              -426
Assets Held for Sale
Change in Cash and Cash Equivalents               -76,204         -5,060
Cash and Cash Equivalents at Beginning of        1,432,534      1,226,317
Year
Cash and Cash Equivalents at End of Period     ¥            ¥ 1,221,257
                                                  1,356,330
                                                                              
                                                                              
    (5) Assumption for Going Concern: None

(6) Segment                                                                            
Information
      
Three-month period ended June 30, 2013 (from April 1, 2013 to June 30, 2013)
                                                                            (Millions of
                                                                                               Yen)
               Iron &     Mineral &   Machinery &                                              Innovation &
           Steel      Metal       Infrastructure   Chemicals    Energy      Lifestyle      Corporate
               Products   Resources                                                            Development
                                                                                                            
Revenue        58,311     185,072     93,726           222,786      381,343     220,223        14,476
Gross Profit   14,429     49,751      27,702           20,310       50,165      27,899         -2,467
(Loss)
Share of
Profit of
Investments
Accounted      1,434      26,598      11,906           1,516        16,560      1,777          4,244
for Using
the Equity
Method
Profit
(Loss) for
the Period     3,025      39,609      9,799            3,903        64,655      -1,097         -1,727
Attributable
to Owners of
the parent
EBITDA        7,265      76,129      13,976           7,918        121,109     3,385          -11,908
Total Assets
at March 31,   567,741    1,970,858   1,872,585        765,751      2,478,158   1,495,387      496,533
2014
                                                                                     
                          Europe,
                                                                                Adjustments
           Americas   the         Asia Pacific     Total        All Other                  Consolidated
                          Middle                                                and            Total
                          East and                                              Eliminations
                          Africa
                                                                                                            
Revenue        176,361    28,057      26,462           1,406,817    480         -4             1,407,293
Gross Profit   19,435     4,324       3,464            215,012      254         -3,937         211,329
(Loss)
Share of
Profit of
Investments
Accounted      1,720      85          1,025            66,865       267         -23            67,109
for Using
the Equity
Method
Profit
(Loss) for
the Period     4,970      417         10,700           134,254      3,141       -4,427         132,968
Attributable
to Owners of
the parent
EBITDA        7,801      -320        738              226,093      1,012       13,042         240,147
Total Assets
at March 31,   568,772    105,907     345,074          10,666,766   5,037,172   -4,212,619     11,491,319
2014
                                                                                                            
                                                                                                            
Three-month period ended June 30,
2014 (from April 1, 2014 to June
30, 2014)
                                                                            (Millions of
                                                                                               Yen)
               Iron &     Mineral &   Machinery &                                              Innovation &
           Steel      Metal       Infrastructure   Chemicals    Energy      Lifestyle      Corporate
               Products   Resources                                                            Development
                                                                                                            
Revenue        44,360     191,839     100,679          218,761      279,242     221,014        27,375
Gross          10,125     45,046      27,413           18,495       52,927      26,271         9,485
Profit
Share of
Profit of
Investments
Accounted      526        21,919      14,993           1,536        13,730      6,247          1,178
for Using
the Equity
Method
Profit
(Loss) for
the Period     1,038      38,655      11,573           2,558        56,672      169            -860
Attributable
to Owners of
the parent
EBITDA        2,107      71,279      16,515           6,134        119,500     2,799          872
Total Assets
at June 30,    555,246    1,938,510   1,910,185        758,725      2,397,388   1,547,231      485,398
2014
                                                                                     
                          Europe,
                                                                                Adjustments
           Americas   the         Asia Pacific     Total        All Other                  Consolidated
                          Middle                                                and            Total
                          East and                                              Eliminations
                          Africa
                                                                                                            
Revenue        232,852    27,449      26,479           1,370,050    476         -              1,370,526
Gross Profit   18,357     4,343       2,875            215,337      224         -5,172         210,389
Share of
Profit of
Investments
Accounted      2,269      436         1,684            64,518       -           -198           64,320
for Using
the Equity
Method
Profit
(Loss) for
the Period     5,757      1,084       10,346           126,992      1,853       -1,039         127,806
Attributable
to Owners of
the parent
EBITDA        7,525      -158        493              227,066      -302        17,403         244,167
Total Assets
at June 30,   601,357   99,753     350,980         10,644,773  4,956,954  -4,019,496    11,582,231
2014

         1. “All Other” principally consisted of the Corporate Staff Unit
Notes:  which provides financing services and operations services to
         external
         customers and/or to the companies and affiliated companies. Total
         assets of “All Other” at March 31, 2014 and June 30, 2014 consisted
         primarily of cash and cash equivalents and time deposits related to
         financing activities, and assets of the Corporate Staff Unit and
         certain subsidiaries related to the above services.
         2. Transfers between repotable segments are made at cost plus a
         markup.
         3. Profit (Loss) for the Period Attributable to Owners of the parent
         of “Adjustments and Eliminations” includes income and expense items
         that are
         not allocated to specific reportable segments, and eliminations of
         intersegment transactions.
         4. During the three-month period ended June 30, 2014, EBITDA is
         disclosed by reportable segments as the information of the operating
         segments
         periodically reviewed by the management. EBITDA is comprised of the
         companies' (a) gross profit, (b) selling, general and administrative
         expenses,
         (c) dividend income and (d) share of profit of investments accounted
         for using the equity method as presented in the Condensed
         Consolidated Statements
         of Income and (e) depreciation and amortization as presented in the
         Condensed Consolidated Statements of Cash Flows.

For diagrams omitted, please see our home page.
(https://www.mitsui.com/jp/en/ir/meeting/account/__icsFiles/afieldfile/2014/08/06/en_153_1q_ta_1.pdf)

Contact:

Mitsui & Co Ltd

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