Mitsubishi Heavy Industries : Financial Results (785 KB) (financial results)

About this update from Mitsubishi Heavy Industries, Ltd.

2026-5-12 Outline of FY2025 Financial Results Consolidated (IFRS) (Billions of yen) FY2025 From April 1, 2025 to March 31, 2026 FY2024 From April 1, 2024 to March 31, 2025 Changes (%) Order intake 7,653.6 6,405.1 19.5 Revenue 4,974.1 4,361.1 14.1 Profit from business activities 432.2 354.9 21.8 Profit before income taxes 474.6 352.0 34.8 Profit 345.9 261.9 32.0 Profit (loss) attributable to owners of the parent 332.1 245.4 35.3 Cash flows from operating activities 942.6 530.4 Cash flows from investing activities (49.1) (187.7) Cash flows from financing activities (274.5) (114.1) Earnings per share attributable to owners of the parent 98.86 yen 73.04 yen 35.3 Note1: Figures in parentheses are negative. Note2: "Order intake", "revenue", "profit from business activities", and "profit before income taxes" are presented excluding discontinued operations, reflecting amounts for continuing operations only. 1/2 Non-consolidated (Japanese GAAP) (Billions of yen) FY2025 From April 1, 2025 to March 31, 2026 FY2024 From April 1, 2024 to March 31, 2025 Changes (%) Order intake 4,177.7 3,385.1 23.4 Net Sales 2,396.2 1,947.1 23.1 Operating profit 239.4 145.0 65.0 Ordinary profit 293.4 187.2 56.7 Profit before income taxes 297.9 164.5 81.1 Profit 227.7 119.8 90.0 Basic earnings per share 67.79 yen 35.67 yen 90.0 Annual dividends per share 25.00 yen 23.00 yen Note: Figures in parentheses are negative. 2/2 Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. May 12, 2026 Consolidated Financial Results for FY2025 Ended March 31, 2026 [IFRS] Company name: Mitsubishi Heavy Industries, Ltd. Listing: Tokyo Stock Exchange / Nagoya Stock Exchange / Fukuoka Stock Exchange / Sapporo Securities Exchange Securities code: 7011 URL: https://www.mhi.com/ Representative: Eisaku Ito, President and CEO Inquiries: Kentaro Ikeda, Senior General Manager of Financial Planning Division Scheduled date of annual general meeting of shareholders: June 26, 2026 Scheduled date to commence dividend payments: June 29, 2026 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for institutional investors, financial analysts, and media) Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Revenue Profit from business activities Profit before income taxes Profit Millions of yen ％ Millions of yen ％ Millions of yen ％ Millions of yen ％ FY2025 4,974,168 14.1 432,218 21.8 474,694 34.8 345,942 32.0 FY2024 4,361,127 - 354,965 - 352,073 - 261,997 7.6 Profit attributable to owners of the parent Total comprehensive income Basic earnings per share Diluted earnings per share Millions of yen ％ Millions of yen ％ Yen Yen FY2025 332,129 35.3 838,943 312.8 98.86 98.84 FY2024 245,447 10.6 203,213 (65.5) 73.04 73.02 Return on equity attributable to owners of parent Ratio of profit before tax to total assets Ratio of operating profit to revenue % % % FY2025 12.2 6.4 8.7 FY2024 10.7 5.5 8.1 [Reference] Share of profit of investments accounted for using the equity method FY2025: ¥16,690 million FY2024: -¥2,607 million *1 "Profit from business activities" on the consolidated statement of profit or loss is presented as a measure that enables continuous comparison and assessment of the Group's business performance. "Profit from business activities" is calculated by subtracting "cost of sales," "selling, general and administrative expenses," and "other expenses" from "revenue" and adding "share of profit (loss) of investments accounted for using the equity method" and "other income" to the resulting amount. "Other income" and "other expenses" consist of dividend income, gains or losses on sales of fixed assets, impairment losses on fixed assets, and others. *2 During the fiscal year ended March 31, 2026, the business operations related to Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd), a consolidated subsidiary of the Company, and its subsidiaries and affiliates, have been classified as discontinued operations. Accordingly, "revenue", "profit from business activities", and "profit before income taxes" are presented excluding discontinued operations, reflecting amounts for continuing operations only. Meanwhile, "profit", "profit attributable to owners of the parent", and "total comprehensive income" are presented as the total of continuing and discontinued operations. "Basic earnings per share" and "diluted earnings per share" are calculated based on "profit attributable to owners of the parent". Furthermore, "revenue", "profit from business activities", and "profit before income taxes" for the previous fiscal year ended March 31, 2025 consolidated accounting period have been restated in the same manner. Therefore, year-on-year percentage changes for these items are not presented. Consolidated financial position Total assets Total equity Equity attributable to owners of the parent Ratio of equity attributable to owners of the parent to total assets Equity attributable to owners of the parent per share As of Millions of yen Millions of yen Millions of yen % Yen March 31, 2026 8,269,711 3,228,400 3,088,566 37.3 919.16 March 31, 2025 6,658,924 2,469,823 2,346,702 35.2 698.91 Consolidated cash flow Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at the end of period Millions of yen Millions of yen Millions of yen Millions of yen FY2025 942,619 (49,175) (274,553) 1,334,874 FY2024 530,459 (187,714) (114,123) 657,816 Cash dividends Annual dividends per share Total cash dividends (Total) Payout ratio (Consolidated) Ratio of dividends to equity attributable to owners of parent (Consolidated) First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Millions of yen % % FY2024 - 11.00 - 12.00 23.00 77,497 31.5 3.4 FY2025 - 12.00 - 13.00 25.00 84,239 25.3 3.1 FY2026 (Forecast) - 14.00 - 15.00 29.00 25.6 Estimate of Consolidated Financial Results for FY 2026 ending March 31, 2027 (Percentages indicate year-on-year changes.) Revenue Profit from business activities Profit before income tax Profit attributable to owners of the parent Basic earnings per share From April 1, 2026 to March 31, 2027 Millions of yen 5,400,000 ％ 8.6 Millions of yen 540,000 ％ 24.9 Millions of yen 530,000 ％ 11.7 Millions of yen 380,000 ％ 14.4 Yen 113.09 Notes Significant changes in the scope of consolidation during the period: None Changes in accounting policies and changes in accounting estimates Changes in accounting policies required by IFRS: None Changes in accounting policies due to other reasons: None Changes in accounting estimates: None The number of shares issued (Common Stock) Total number of shares issued at the end of the period (including treasury shares) As of March 31, 2026 3,373,647,810 shares As of March 31, 2025 3,373,647,810 shares Number of treasury shares at the end of the period As of March 31, 2026 13,438,470 shares As of March 31, 2025 15,980,024 shares Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) FY2025 3,359,594,228 shares FY2024 3,360,292,439 shares [Reference] Overview of non-consolidated financial results for FY2025 ended March 31, 2026 (from April 1, 2025 to March 31,2026) Non-consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit Millions of yen ％ Millions of yen ％ Millions of yen ％ Millions of yen ％ FY2025 2,396,273 23.1 239,426 65.0 293,462 56.7 227,759 90.0 FY2024 1,947,178 12.6 145,072 97.2 187,257 55.7 119,855 (21.7) Basic earnings per share Diluted earnings per share Yen Yen FY2025 67.79 67.78 FY2024 35.67 35.66 Non-consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share As of Millions of yen Millions of yen % Yen March 31, 2026 5,106,612 1,355,393 26.5 403.27 March 31, 2025 4,054,184 1,179,519 29.1 351.18 [Reference] Equity As of March 31, 2026: ¥1,355,099 million As of March 31, 2025: ¥1,179,180 million The Japanese-language originals of this document are not subject to certified public accountants' or an audit firm's review Proper use of earnings forecasts, and other special matters Note regarding forward-looking statements: Forecasts regarding future performance outlined in these materials are based on judgments made in accordance with information available at the time they were prepared. As such, these projections include risk and uncertainty. Investors are recommended not to depend solely on these projections when making investment decisions. Actual results may vary significantly from these projections due to a number of factors, including, but not limited to, economic trends affecting the Company's operating environment, fluctuations in the value of the Japanese yen to the U.S. dollar and other foreign currencies, and trends in Japan's stock markets. The results projected here should not be construed in any way as a guarantee by the Company. How to obtain supplementary materials regarding the financial results: Supplementary materials regarding the financial results are available on the Company's website. Table of Contents for Attachments Operating results and financial position …………………………………………………………………………………… 2 Operating results 2 Financial position 2 Basic Approach to Selection of Accounting Standards …………………………………………………………………… 3 Condensed Quarterly Consolidated Financial Statements and Major Notes ………………………………………………… 4 Condensed Consolidated Statement of Financial Position …………………………………………………………… 4 Condensed Consolidated Statement of Profit or Loss & Comprehensive Income …………………………………… 6 (Condensed Consolidated Statement of Profit or Loss) ……………………………………………………………… 6 (Condensed Consolidated Statement of Comprehensive Income) ………………………………………………… 7 Condensed Consolidated Statement of Changes in Equity …………………………………………………………… 8 Condensed Consolidated Statement of Cash Flows …………………………………………………………………… 9 Going Concern Assumption ………………………………………………………………………………………… 11 Segment Information ………………………………………………………………………………………………… 11 Assets Held for Sale …………………………………………………………………………………………………… 13 Discontinued Operations ……………………………………………………………………………………………… 14 Earnings Per Share …………………………………………………………………………………………………… 15 Material Subsequent Events ………………………………………………………………………………………… 15 Others ………………………………………………………………………………………………………………… 15 FY2026 Earnings Forecast ………………………………………………………………………………………………… 16 Operating Results and Financial Position Operating Results Economic conditions in FY2025 ended March 31, 2026 In the fiscal year ended March 31, 2026 under review, the global economy continued to grow steadily on the whole, supported by an expansion in production and investment in the AI-related field, despite stagnation in China. The Japanese economy also maintained a moderate recovery trend, led by digital-related investment by companies and personal consumption. On the other hand, the outlook remained uncertain due to uncertainty surrounding U.S. trade policy and heightened geopolitical risks, including the situation in the Middle East. Summary of consolidated financial results for FY2025 ended March 31, 2026 Under the above mentioned circumstances, order intake of MHI Group (hereinafter referred to as "the Group") in the fiscal year ended March 31, 2026 under review increased by ¥1,248.4 billion year-on-year to ¥7,653.6 billion, mainly due to an increase in Energy Systems segment. Consolidated revenue increased mainly in Aircraft, Defense & Space segment and Energy Systems segment and totaled ¥4,974.1 billion, rising ¥613.0 billion year on year. Profit from business activities increased in all segments, including Energy Systems segment and Aircraft, Defense & Space segment, and amounted to ¥432.2 billion, up ¥77.2 billion year on year. Profit before income taxes increased ¥122.6 billion year on year to ¥474.6 billion, while profit attributable to owners of the parent came to ¥332.1 billion, up ¥86.6 billion from the fiscal year ended March 31, 2025. From the fiscal year ended March 31, 2026, the business operations related to Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.), a consolidated subsidiary of the Company, and its subsidiaries and affiliates, have been classified as discontinued operations. Accordingly, "order intake", "revenue", "profit from business activities", and "profit before income taxes" are presented excluding discontinued operations, reflecting amounts for continuing operations only. Meanwhile, "profit attributable to owners of the parent" is presented as the total of continuing and discontinued operations. Estimate of consolidated financial results for FY 2026 ending March 31, 2027 For fiscal 2026, we expect revenue of ¥5.4 trillion, profit from business activities of ¥540 billion, profit before income taxes of ¥530 billion and profit attributable to owners of the parent of ¥380 billion. *1 The exchange rates for undetermined foreign currencies are assumed to be ¥150 to the dollar and ¥180 to the euro. *2 Please refer to "4. FY2026 Earnings Forecast" for details. Note The above mentioned estimate regarding future performance is based on judgments made in accordance with information available at the time they were prepared. As such, these projections include risk and uncertainty. Investors are recommended not to depend solely on these projections when making investment decisions. Actual results may vary significantly from these projections due to a number of factors, including, but not limited to, economic trends affecting the Company's operating environment, fluctuations in the value of the Japanese yen to the U.S. dollar and other foreign currencies, and trends in Japan's stock markets. The results projected here should not be construed in any way as a guarantee by the Company. Financial Position Assets, liabilities and equity Due to increases mainly in "Cash and cash equivalents" and "Contract assets", assets for the Group increased by ¥1,610.7 billion from the fiscal year ended March 31, 2025, to ¥8,269.7 billion in the fiscal year ended March 31, 2026 under review. Liabilities increased ¥852.2 billion from the end of the fiscal year ended March 31, 2025 to ¥5,041.3 billion, mainly due to an increase in "Contract liabilities" driven by higher order volume. Due to increases mainly in "Other components of equity" and "Retained earnings" resulting from higher comprehensive income attributable to owners of the parent and other items, total equity rose ¥758.5 billion from the end of the fiscal year ended March 31, 2025 to ¥3,228.4 billion. Cash flow Net cash provided by operating activities totaled ¥942.6 billion, an increase of ¥412.1 billion over the fiscal year ended March 31, 2025. This was due primarily to higher Profit before income taxes and the acquisition of Contract liabilities resulting from expanded orders. Net cash used in investing activities came to ¥49.1 billion, a decrease of ¥138.5 billion over the previous fiscal year. This was due mainly to decreases in "Purchases of PPE, and intangible assets" and "Payments for derivative transactions". Free cash flow, which includes net cash provided by operating activities and net cash used in investing activities, came to ¥893.4 billion, an increase of ¥550.6 billion over the previous fiscal year. Net cash used in financing activities came to ¥274.5 billion, an increase of ¥160.4 billion over the previous fiscal year. This was due mainly to a decrease in "Proceeds from factoring agreements". As a result, cash and cash equivalents at the end of the fiscal year increased by ¥677.0 billion from the end of the previous fiscal year to ¥1,334.8 billion. Interest-bearing debt decreased to ¥515.7, which does not include interest-bearing debt of ¥35.7 billion related to the business operations of Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.), a consolidated subsidiary of the Company, and its subsidiaries and affiliates. Trends in the Group's cash flow indicators are as follows. International Financial Reporting Standards (IFRS) FY2021 FY2022 FY2023 FY2024 FY2025 Ratio of equity attributable to owners of the parent to total assets (Equity ratio) 30.8% 31.8% 35.9% 35.2% 37.3% Ratio of equity attributable to owners of the parent to total assets at fair value (Equity ratio) 26.4% 29.9% 77.8% 127.5% 171.6% Debt redemption period (year) 2.6 9.2 2.2 1.2 0.6 Interest coverage ratio 27.0 6.2 29.6 36.7 81.6 "Ratio of equity attributable to owners of the parent to total assets" is calculated by dividing equity attributable to owners of the parent by total capital. "Equity ratio at fair value" is calculated by dividing market capitalization by total capital. "Debt redemption period" is calculated by dividing interest-bearing debts by cash flows from operating activities. "Interest coverage ratio" is calculated by dividing cash flows from operating activities by net interest expense. *1 All calculations are based on consolidated financial figures. *2 Cash flows are based on those from operating activities. *3 The balance of interest-bearing debts covers all liabilities on the balance sheet for which interest is paid. Basic Approach to Selection of Accounting Standards Our group has adopted the International Financial Reporting Standards (IFRS) with the aim of improving the international comparability of financial information in the capital markets and improving group management by standardizing accounting methods. Condensed Quarterly Consolidated Financial Statements and Major Notes Condensed Consolidated Statement of Financial Position (Millions of yen) As of March 31, 2025 As of March 31, 2026 Assets Current assets Cash and cash equivalents 657,816 1,334,874 Trade and other receivables 984,684 1,108,557 Other financial assets 41,959 56,836 Contract assets 791,871 1,019,196 Inventories 1,062,532 1,041,899 Assets held for sale 3,718 548,409 Other current assets 369,048 330,652 Total current assets 3,911,632 5,440,426 Non-current assets Property, plant and equipment ("PPE") 935,096 794,467 Goodwill 172,947 106,394 Intangible assets 87,269 77,471 Right-of-use assets 86,996 62,849 Investments accounted for using the equity method 295,172 326,932 Other financial assets 470,907 489,341 Deferred tax assets 259,942 84,810 Other non-current assets 438,960 887,018 Total Non-current assets 2,747,292 2,829,285 Total assets 6,658,924 8,269,711 (Millions of yen) As of March 31, 2025 As of March 31, 2026 Liabilities and Equity Current liabilities Bonds, borrowings and other financial liabilities 280,528 255,067 Trade and other payables 930,281 1,000,863 Income taxes payable 25,282 86,557 Contract liabilities 1,443,983 2,161,881 Provisions 229,032 244,851 Liabilities directly associated with assets held for sale - 281,931 Other current liabilities 237,191 230,058 Total Current liabilities 3,146,299 4,261,212 Non-current liabilities Bonds, borrowings and other financial liabilities 850,746 621,173 Deferred tax liabilities 9,594 11,099 Retirement benefit liabilities 72,042 56,701 Provisions 72,102 54,905 Other non-current liabilities 38,315 36,218 Total non-current liabilities 1,042,801 780,098 Total liabilities 4,189,101 5,041,310 Equity Share capital 265,608 265,608 Capital surplus 44,742 48,274 Treasury shares △16,452 △12,915 Retained earnings 1,588,643 1,880,339 Other components of equity 464,159 907,258 Equity attributable to owners of the parent 2,346,702 3,088,566 Non-controlling interests 123,121 139,834 Total Equity 2,469,823 3,228,400 Total Liabilities and Equity 6,658,924 8,269,711 Condensed Consolidated Statement of Profit or Loss & Comprehensive Income Condensed Consolidated Statement of Profit or Loss (Millions of yen) FY2024 (From Apr. 1, 2024 to Mar. 31, 2025) FY2025 (From Apr. 1, 2025 to Mar. 31, 2026) Continuing operations Revenue Cost of sales Gross Profit Selling, general and administrative expenses Share of profit of investments accounted for using the equity method Other income Other expenses Profit from business activities Finance income Finance costs Profit before income taxes Income taxes Profit from continuing operations 4,361,127 3,490,008 871,119 584,085 (2,607) 91,967 21,427 354,965 12,779 15,672 352,073 106,409 245,663 4,974,168 3,891,494 1,082,674 632,810 16,690 35,619 69,954 432,218 59,460 16,984 474,694 116,306 358,387 Discontinued operations Profit (loss) from discontinued operations 16,333 ( 12,445) Profit 261,997 345,942 Profit attributable to: Owners of the parent Non-controlling interests 245,447 16,549 332,129 13,812 (yen) Earnings per share attributable to owners of the parent Basic earnings (loss) per share 73.04 98.86 Continuing operations 69.95 104.68 Discontinued operations 3.10 (5.82) Diluted earnings (loss) per share 73.02 98.84 Continuing operations 69.93 104.66 Discontinued operations 3.10 (5.82) Condensed Consolidated Statement of Comprehensive Income (Millions of yen) FY2024 (From Apr. 1, 2024 to Mar. 31, 2025) FY2025 (From Apr. 1, 2025 to Mar. 31, 2026) Profit 261,997 345,942 Other comprehensive income Items that will not be reclassified to profit or loss Net gains from financial assets measured at FVTOCI (42,506) 80,464 Remeasurement of defined benefit plans (8,581) 291,168 Share of other comprehensive income of entities accounted for using the equity method 872 1,345 Total ( 50,215) 372,978 Items that may be reclassified to profit or loss Cash flow hedges 1,100 (3,670) Exchange differences on translating foreign operations (10,660) 104,290 Share of other comprehensive income of entities accounted for using the equity method 991 19,402 Total ( 8,568) 120,022 Total other comprehensive income (58,784) 493,000 Comprehensive income 203,213 838,943 Comprehensive income attributable to Owners of the parent 186,470 815,370 Non-controlling interests 16,742 23,572 Condensed Consolidated Statement of Changes in Equity (Millions of yen) Equity attributable to owners of the parent Non-controlling interests Total Equity Share capital Capital surplus Treasury shares Retained earnings Other components of equity Total Balance as of Apr. 1, 2024 265,608 41,187 (4,828) 1,433,267 509,385 2,244,620 116,034 2,360,654 Profit 245,447 245,447 16,549 261,997 Other comprehensive income (58,977) (58,977) 193 (58,784) Comprehensive income - - - 245,447 (58,977) 186,470 16,742 203,213 Transfer to retained earnings (13,742) 13,742 - - Purchase of treasury shares (12,174) (12,174) (12,174) Disposal of treasury shares 20 50 71 71 Dividends (77,321) (77,321) (7,943) (85,264) Others 3,533 500 993 8 5,035 (1,711) 3,323 Total transactions with owners - 3,554 (11,623) (76,328) 8 (84,388) (9,655) (94,044) Balance as of Mar. 31, 2025 265,608 44,742 (16,452) 1,588,643 464,159 2,346,702 123,121 2,469,823 Profit 332,129 332,129 13,812 345,942 Other comprehensive income 483,240 483,240 9,760 493,000 Comprehensive income - - - 332,129 483,240 815,370 23,572 838,943 Transfer to retained earnings 40,137 ( 40,137) - - Purchase of treasury shares (6) (6) (6) Disposal of treasury shares 11 33 44 44 Dividends (80,615) (80,615) (7,755) (88,371) Others 3,520 3,510 43 (3) 7,070 895 7,966 Total transactions with owners - 3,531 3,537 ( 80,571) (3) ( 73,506) ( 6,860) ( 80,366) Balance as of Mar. 31, 2026 265,608 48,274 ( 12,915) 1,880,339 907,258 3,088,566 139,834 3,228,400 Condensed Consolidated Statement of Cash Flows (Millions of yen) FY2024 (From Apr. 1, 2024 to Mar. 31, 2025) FY2025 (From Apr. 1, 2025 to Mar. 31, 2026) Cash flows from operating activities Profit before income taxes 352,073 474,694 Profit (loss) before income taxes from discontinued operations 22,458 (5,550) Depreciation, amortization and impairment loss 160,643 211,214 Finance income and costs 6,623 (73,730) Share of loss (profit) of investments accounted for using the equity method 2,754 (16,717) Loss (gain) on sale of PPE and intangible assets (70,510) (8,690) Loss on disposal of PPE and intangible assets 10,399 9,625 Decrease (increase) in trade receivables (29,668) (201,178) Decrease (increase) in contract assets (56,725) (208,901) Decrease (increase) in inventories and advanced payments (147,467) (37,675) Increase (decrease) in trade payables 13,481 107,671 Increase (decrease) in contract liabilities 361,023 663,533 Increase (decrease) in provisions 8,094 3,274 Increase (decrease) in retirement benefit liabilities 17,821 33,258 Others (26,260) 8,556 Subtotal 624,739 959,382 Interest received 10,804 14,010 Dividends received 15,796 25,769 Interest paid (14,457) (11,546) Income taxes paid (106,424) (44,997) Net cash provided by operating activities 530,459 942,619 (Millions of yen) FY2024 (From Apr. 1, 2024 to Mar. 31, 2025) FY2025 (From Apr. 1, 2025 to Mar. 31, 2026) Cash flows from investing activities Payments into fixed-term deposits (26,780) (23,526) Proceeds from withdrawal of fixed-term deposits 24,825 23,826 Purchases of PPE, and intangible assets (240,692) (181,064) Proceeds from sales of PPE, and intangible assets 76,474 14,612 Purchases of investments (including investments accounted for using the equity method) (63,885) (7,493) Proceeds from sales and redemption of investments (including investments accounted for using the equity method) 58,672 101,609 Proceeds from sale of businesses (including subsidiaries) - 4,894 Payments for sale of businesses (including subsidiaries) (1,475) - Payments for acquisition of businesses (including subsidiaries) (1,509) (27,054) Net decrease (increase) in short-term loans 519 (348) Disbursement of long-term loans (15,675) (353) Collection of long-term loans 121 312 Payments for derivative transactions (100,520) (43,649) Proceeds from derivative transactions 108,484 98,972 Others (6,273) (9,912) Net cash provided by (used in) investing activities (187,714) ( 49,175) Cash flows from financing activities Net increase (decrease) in short-term borrowings (9,389) (16,162) Proceeds from long-term borrowings 9,012 1,000 Repayment of long-term borrowings (76,629) (66,546) Proceeds from issuance of bonds 30,000 10,000 Payment for redemption of bonds (30,000) (35,000) Payments for acquisition of interests in subsidiaries from non-controlling interests (1,806) - Dividends paid to owners of the parent (77,165) (80,481) Dividends paid to non-controlling interests (7,659) (7,796) Payments for purchase of treasury shares (12,366) (184) Proceeds from factoring agreements 283,678 85,243 Repayment of liabilities under factoring agreements (192,643) (135,557) Repayment of lease liabilities (27,834) (27,855) Others (1,318) (1,212) Net cash provided by (used in) financing activities (114,123) ( 274,553) Effect of exchange rate changes on cash and cash equivalents (2,091) 79,518 Net increase (decrease) in cash and cash equivalents 226,529 698,407 Cash and cash equivalents at the beginning of the year 431,287 657,816 Cash and cash equivalents included in assets held for sale - (21,350) Cash and cash equivalents at the end of the period 657,816 1,334,874 Going Concern Assumption Not applicable Segment Information Overview of reporting segments The reporting segments of the Group are components for which discrete financial information is available and whose operating results are regularly reviewed by MHI's Board of Directors to make decisions about resource allocation and assess their performance. The Group manages its businesses by business domains and segments. Each business domain and segment engages in its business activities by formulating comprehensive strategies on products and services which are provided in both domestic and overseas markets. Therefore, MHI aggregates its business domain segments into four reportable segments, "Energy Systems", "Plants & Infrastructure Systems", "Logistics, Thermal & Drive Systems", and "Aircraft, Defense & Space", by considering similarities of each business domain's and segment's customers and product characteristics. Main products and services belonging to each reporting segment are as follows: Energy Systems Thermal power systems (GTCC* and Steam power), Nuclear power systems (Light-water reactors, Nuclear fuel cycle & Advanced solutions), Wind power systems, Aero engines, Compressors, Marine machinery * Gas turbine combined cycle Plants & Infrastructure Systems Metal machinery, Commercial ships, Engineering (Transportation systems, Chemical plants), Environmental systems, Machinery systems (paper converting machinery, ITS*, Test equipment) * Intelligent Transport Systems Logistics, Thermal & Drive Systems Air-conditioning & refrigeration systems, Engines, Turbochargers, Automotive thermal systems Aircraft, Defense & Space Commercial aviation, Defense aircraft, Missile systems, Naval ships, Maritime systems (Torpedoes), Special vehicles (Tanks), Space systems The Group has classified the business operations related to Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.) and its subsidiaries and affiliates, which was included in "Logistics, Refrigeration and Drive Systems" as discontinued operations for FY2025, and has deducted it from the amounts for FY2024 and FY2025. Accordingly, the segment information for FY2024 has been restated. Information about revenue, profit or loss and other items by reporting segment For FY2024 (From April 1, 2024 to March 31, 2025) (Millions of yen) Reporting segment Others *1 Total Corporate & Eliminations *2 Consolidated Energy Systems Plants & Infrastructure Systems Logistics, Thermal & Drive Systems Aircraft, Defense & Space Total Revenue Revenue from external customers Inter-segment revenue and transfers 1,803,878 11,918 806,177 45,935 636,609 4,426 1,029,291 1,354 4,275,957 63,634 73,215 1,259 4,349,172 64,893 11,955 (64,893) 4,361,127 - Total 1,815,796 852,112 641,035 1,030,646 4,339,591 74,474 4,414,065 ( 52,938) 4,361,127 Segment profit *3 205,356 59,634 20,480 99,984 385,455 30,002 415,457 (60,491) 354,965 Finance income 12,779 Finance costs 15,672 Profit before income taxes 352,073 For FY2025 (From April 1, 2025 to March 31, 2026) (Millions of yen) Reporting segments Others *1 Total Corporate & Eliminations *2 Consolidated Energy Systems Plants & Infrastructure Systems Logistics, Thermal & Drive Systems Aircraft, Defense & Space Total Revenue Revenue from external customers Inter-segment revenue and transfers 2,053,956 8,644 814,757 66,135 624,860 5,966 1,392,898 960 4,886,472 81,707 74,467 1,527 4,960,939 83,234 13,228 (83,234) 4,974,168 - Total 2,062,600 880,893 630,826 1,393,858 4,968,179 75,994 5,044,174 ( 70,005) 4,974,168 Segment profit *3 267,272 84,106 33,066 151,505 535,950 (26,810) 509,140 (76,921) 432,218 Finance income 59,460 Finance costs 16,984 Profit before income taxes 474,694 *1 "Others" includes the businesses categorized in growth areas such as data center & energy management and asset businesses, which are not included in the reporting segments. *2 "Corporate & Eliminations" includes revenues and expenses which are not included in any of the reporting segments. Specifically, corporate research and development expenses and dividends on shares concerning corporate overall businesses, neither of which are linked to any specific segment. *3 Segment profit represents profit from business activities. Assets Held for Sale Assets held for sale and liabilities directly associated with assets held for sale are comprised of the following. Assets held for sale (Millions of yen) FY2024 (From Apr. 1, 2024 to Mar. 31, 2025) FY2025 (From Apr. 1, 2025 to Mar. 31, 2026) Cash and cash equivalents - 21,350 Trade and other receivables - 113,043 Contract assets - 1,261 Inventories - 109,256 Property, plant and equipment ("PPE") 3,718 196,356 Goodwill - 27,186 Intangible assets - 16,673 Right-of-use assets - 28,567 Investments accounted for using the equity method - 1,439 Other financial assets - 10,767 Deferred tax assets - 7,998 Other assets - 14,509 Total 3,718 548,409 Liabilities directly associated with assets held for sale (Millions of yen) FY2024 (From Apr. 1, 2024 to Mar. 31, 2025) FY2025 (From Apr. 1, 2025 to Mar. 31, 2026) Bonds, borrowings and other financial liabilities - 129,843 Trade and other payables - 70,500 Income taxes payable - 2,011 Contract liabilities - 11,759 Retirement benefit liabilities - 12,655 Provisions - 10,010 Deferred tax liabilities - 1,831 Other current liabilities - 43,318 Total - 281,931 Assets held for sale in FY2024 were mainly property, plant and equipment expected to be sold within one year. Assets held for sale and associated liabilities in FY2025 were mainly related to the business of Mitsubishi Logisnext Co., Ltd. (currently Logisnext Co., Ltd.) and its subsidiaries and affiliates. The disposal group classified as held for sale in FY2025 is measured at fair value less costs to sell because the fair value less costs to sell is lower than the carrying amount. Fair value is calculated based on the share price at the end of FY2025. Accumulated other comprehensive income related to the relevant business (mainly foreign currency translation differences of overseas operations) of ¥26,968 million is included in "Other components of equity" in the consolidated statement of financial position at the end of FY2025. Discontinued Operations The Company, at the meeting of its board of directors held on September 30, 2025, resolved to enter into the basic transaction agreement concerning the following matters with LVJ Holdings 2 LLC (the "Tender Offeror"), which is wholly owned by JIP Fund VI, for which all the issued shares are held by Japan Industrial Partners, Inc. and the agreement was executed on the same day: A non-participation in a tender offer by the Tender Offeror for the Mitsubishi Logisnext shares and stock options. A share consolidation to be conducted by Mitsubishi Logisnext in order to make the Tender Offeror and the Company the only shareholders of Mitsubishi Logisnext if the Tender Offeror is unable to acquire all the Mitsubishi Logisnext shares and stock options through the Tender Offer Subject to the effectiveness of the share consolidation, a provision of funds to Mitsubishi Logisnext by the Tender Offeror and a reduction in Mitsubishi Logisnext's capital stock, capital reserves and retained earnings reserves based on Article 447, Paragraph 1 and Article 448, Paragraph 1 of the Companies Act for the purpose of securing the funds and distributable amount for Mitsubishi Logisnext to acquire the Mitsubishi Logisnext shares held by the Company (the "Non-Tendered Shares") A share repurchase by Mitsubishi Logisnext of the Non-Tendered Shares, and a series of transactions for the purposes of taking Mitsubishi Logisnext private through (a) to (d) The Company to underwrite Class B Preferred Shares and Class D Type Shares issued by the Tender Offeror following the effectiveness of the share repurchase Through the transaction, Mitsubishi Logisnext shall cease to be a consolidated subsidiary of the Company. Therefore, the businesses related to Mitsubishi Logisnext Co., Ltd. and its subsidiaries and affiliates are classified as discontinued operations in FY2025. The completion of this transaction was completed on May 1, 2026. Profit or loss from discontinued operations (Millions of yen) FY2024 (From Apr. 1, 2024 to Mar. 31, 2025) FY2025 (From Apr. 1, 2025 to Mar. 31, 2026) Revenue 674,181 643,558 Expenses 651,723 649,109 Profit (loss) before income taxes from discontinued operations 22,458 (5,550) Income taxes 6,124 6,894 Profit (loss) from discontinued operations 16,333 (12,445) Expenses for FY2025 include a write-down of ¥32,117 million resulting from measuring the disposal group constituting discontinued operations at fair value less costs to sell. Cash flows from discontinued operations (Millions of yen) FY2024 (From Apr. 1, 2024 to Mar. 31, 2025) FY2025 (From Apr. 1, 2025 to Mar. 31, 2026) Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities 42,105 (34,260) (7,714) 49,979 (38,704) (5,355) Total 131 5,919 Earnings Per Share Equity attributable to owners of parent per share: ¥919.16 Basic earnings per share: ¥98.86 Material Subsequent Events As described in "(8) Discontinued Operations," the Company entered into the basic transaction agreement on September 30, 2025 in order to take Mitsubishi Logisnext Co., Ltd. private and subsequently proceeded with the procedures for a tender offer. These procedures were completed on May 1, 2026. The impact of the completion of the transaction on the Company's consolidated financial results for the fiscal year ending March 31, 2027 is expected to be minimal. Others Major Lawsuits There was a temporary dispute between a consortium composed of MHI and Daewoo Engineering & Construction Co., Ltd. ("MHI and Daewoo") and El Sharika El-Djazairia El-Omania Lil Asmida SPA ("AOA") regarding a chemical fertilizer plant construction contract in Algeria whose orders had been received by MHI and Daewoo, but a settlement was reached in 2017 (the "Settlement Agreement"), and the consortium delivered the plant to AOA. However, AOA subsequently refused to make some of the outstanding payment under the Settlement Agreement. Therefore, MHI and Daewoo filed for arbitration against AOA and one of its shareholders, Societe Nationale pour la Recherche, la Production, le Transport, la Transformation et la Commercialisation des Hydrocarbures SPA ("SONATRACH"). In March 2021, MHI and Daewoo received a counterclaim from AOA which mainly consists of the cancellation of the Settlement Agreement and the refund of the payment already made under the Settlement Agreement. In October 2022, the arbitral tribunal decided to exclude SONATRACH from participants of arbitration. MHI and Daewoo will assert that there are no reasonable grounds for AOA's refusal to make the outstanding payment and that the counterclaim should be dismissed. FY2026 Earnings Forecast Order Intake by Segment (Billions of yen) Segment Order Intake Energy System 3,450.0 Plants & Infrastructure Systems 1,000.0 Industrial Solution Systems 750.0 Aircraft, Defense & Space 1,650.0 Others, Corporate & Eliminations (50.0) Total 6,800.0 Revenue by Segment (Billions of yen) Segment Order Intake Energy System 2,200.0 Plants & Infrastructure Systems 950.0 Industrial Solution Systems 750.0 Aircraft, Defense & Space 1,500.0 Others, Corporate & Eliminations 0.0 Total 5,400.0 Earnings Forecast (Billions of yen) Earnings Forecast Revenue 5,400.0 Profit from business activities 540.0 Profit before income taxes 530.0 Profit (loss) attributable to owners of the parent 380.0 Dividend per share Interim: ¥14.00 / Year-end: ¥15.00 Please refer to page 2 for the assumptions of the above forecasts and other related matters. "Profit from business activities" is calculated by subtracting "cost of sales", "selling, general and administrative expenses" and "other expenses" from "revenue" and adding "share of profit of investments accounted for using the equity method" and "other income" to the resulting amount. "Other income" and "other expenses" consist of dividend income, gains or losses on sales of fixed assets, impairment losses on fixed assets, and others. Capital Expenditures (Billions of yen) Capital Expenditures 210.0 Capital expenditures are newly recorded non-current assets (recorded in construction in progress). www.mhi.com

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