Mitsui : Other Items Subject to Measures for Electronic Provision for the 107th Ordinary General Meeting of Shareholders (Items Excluded From Paper-Based Documents)

About this update from Mitsui & Co.,ltd

107th (Year ended March 31, 2026) Note: This document has been translated from Japanese original for reference purpose only, without any warranty as to its accuracy or as to the completeness of the information. The Japanese original version is the sole official version. MITSUI & CO., LTD. Other Items Subject to Measures for Electronic Provision for the 107th Ordinary General Meeting of Shareholders (Items Excluded from Paper-Based Documents) Business Report Current Status of the Company 1 Matters Related to Directors, Officers and Audit & Supervisory Board Members 4 Matters Related to Shares of Mitsui & Co., Ltd. 9 Matters Related to Subscription Rights to Shares, etc 10 Status of Independent Auditor 12 Necessary Systems to Ensure Appropriate Operations and Status of Operations of the Systems 13 Consolidated Financial Statements Consolidated Statements of Changes in Equity 19 Consolidated Statements of Comprehensive Income [Supplementary Information] (Unaudited) 20 Segment Information [Supplementary Information] (Unaudited) 21 Notes to Consolidated Financial Statements 23 Non-Consolidated Financial Statements Statements of Changes in Equity 46 Notes to Non-Consolidated Financial Statements 48 Reference (Unaudited) Equity Securities Held 56 Current Status of the Company, etc. Principal group business (As of March 31, 2026) Mitsui & Co., Ltd. (the "Company", "Mitsui" or "we") and its consolidated subsidiaries (the "Group") have businesses in areas including Mineral & Metal Resources, Energy, Machinery & Infrastructure, Chemicals, Iron & Steel Products, Lifestyle, and Innovation & Corporate Development. The Company engages in a diverse range of business activities including the trading of commodities, manufacturing, transportation, and financing, making full use of our global network of offices and information outreach. Furthermore, the Company and its consolidated subsidiaries are engaged in a wide range of initiatives that include the development of natural resources and infrastructure projects, business investments related to the environment, new technologies, next-generation fuels and wellness, and value creation that leverages digital tools. Principal group offices (As of March 31, 2026) The Company has 10 domestic offices and branches in Japan in addition to its head office and 109 overseas offices, branches and trading affiliates. The principal entities are as follows: Head Office Chiyoda-ku, Tokyo Domestic Offices Hokkaido Office (Sapporo), Tohoku Office (Sendai), Chubu Office (Nagoya), Hokuriku Office (Toyama), Kansai Office (Osaka), Shikoku Office (Takamatsu), Chugoku Office (Hiroshima), Kyushu Office (Fukuoka) Overseas: Trading Affiliates MITSUI & CO. (U.S.A.) MITSUI & CO. EUROPE (United Kingdom) MITSUI & CO. (ASIA PACIFIC) (Singapore) Note: For information regarding the status of important subsidiaries and equity method investees, as well as the number of consolidated subsidiaries, including overseas offices, and equity method investees, see "Principal Subsidiaries" on page 54 of Notice of the 107th Ordinary General Meeting of Shareholders. (URL: https://www.mitsui.com/jp/en/ir/information/general/index.html ) Group employees (Persons) Operating Segment Total Number of Company and Consolidated Subsidiaries Employees Total Number of Company Employees As of March 31, 2025 As of March 31, 2026 As of March 31, 2025 As of March 31, 2026 Mineral & Metal Resources 655 663 356 354 Energy 1,314 1,362 543 545 Machinery & Infrastructure 13,798 13,204 915 916 Chemicals 7,124 6,704 867 852 Iron & Steel Products 1,626 1,920 288 273 Lifestyle 20,529 20,221 939 904 Innovation & Corporate Development 8,073 8,134 600 611 (Other) 3,281 3,248 880 878 Total (Compared with FY March 2025) 56,400 55,456 （△944） 5,388 5,333 （△55） Note: The above employee figures do not include contract employee, temporary staff, or part-time staff. Principal sources of borrowings (As of March 31, 2026) (Mn JPY) Source of Borrowings Amount Borrowed by the Company Sumitomo Mitsui Banking Corporation 776,316 MUFG Bank, Ltd. 558,628 MITSUI & CO. FINANCIAL SERVICES (AUSTRALIA) LTD. 435,997 Japan Bank for International Cooperation 289,428 Nippon Life Insurance Company 222,000 Meiji Yasuda Life Insurance Company 216,000 Sumitomo Mitsui Trust Bank, Limited 189,880 The Norinchukin Bank 149,970 Note: Amounts are rounded down to the nearest 1.0 million yen. Outline of Financing and Capital Expenditure Financing The basic funding policy of the Company is to secure appropriate liquidity required for our business activities and to maintain financial strength and stability. We secure financing for long-term funds, mostly with maturities of around 10 years, primarily through long-term borrowings from domestic financial institutions, including insurance companies and banks, and the issuance of corporate bonds. In cases where projects require large amounts of financing, we utilize loans from government financing agencies and/or project finance. In addition, financing subsidiaries and overseas trading affiliates procure long-term and short-term borrowings as well as issue commercial paper (short-term corporate bonds) in accordance with their funding needs. In principle, subsidiaries secure financing not from financial institutions such as insurance companies and banks outside the Group, but by utilizing our Cash Management Service, in which subsidiaries can secure financing from financing subsidiaries and overseas trading affiliates of the Company. Through this service, we are working towards centralization of financing and the efficient use of funds. Interest-bearing debt (excluding lease liability) outstanding as of March 31, 2026, totaled 5,122.9 billion yen, marking a 813.0 billion yen increase from the previous fiscal year-end. Net interest-bearing debt (after subtracting cash and cash equivalents and time deposits) totaled 4,139.0 billion yen, a 808.9 billion yen increase. Capital Expenditure Material expenditures with respect to acquisitions of property, plant, equipment and investment property for the fiscal year ended March 31, 2026 are listed as follows. (Bn JPY) Operating Segments Business Amount Rhodes Ridge iron ore project 723.8 Mineral & Metal Resources Australian iron ore projects 66.3 Australian metallurgical coal projects 21.5 Energy Oil and gas development and production projects 127.1 Energy / Machinery & Infrastructure Power generation projects 42.5 Chemicals Tank terminals for chemicals 18.4 Trends in Value of Assets and Operating Results (Consolidated and Non-Consolidated) Trends in Value of Assets and Operating Results (Consolidated) (Mn JPY, Except Basic Earnings per Share Attributable to Owners of the Parent) FY March 2023 FY March 2024 FY March 2025 FY March 2026 Revenue 14,306,402 13,324,942 14,662,620 13,995,222 Gross Profit 1,396,228 1,319,715 1,288,366 1,328,153 Profit for the Year Attributable to Owners of the Parent 1,130,630 1,063,684 900,342 833,971 Basic Earnings per Share Attributable to Owners of the Parent (JPY) 360.91 352.80 306.73 291.12 Total Equity Attributable to Owners of the Parent 6,367,750 7,541,848 7,546,615 8,767,744 Total Assets 15,380,916 16,899,502 16,811,509 20,821,528 Note 1: The above table has been prepared on the basis of International Financial Reporting Standards ("IFRS") pursuant to the provisions of Article 120, Paragraph 1 of the Regulation on Corporate Accounting. Note 2: The value of assets and operating results is shown based on the terms used in IFRS. Note 3: Basic Earnings per Share Attributable to Owners of the Parent was computed based on the average number of shares outstanding during the fiscal year. Note 4: Figures less than 1.0 million yen and figures less than 1/100 yen (in the case of Basic Earnings per Share Attributable to Owners of the Parent) are rounded. Note 5: The Company conducted a share split, with each share of common stock being split into two, effective July 1, 2024. Basic Earnings per Share Attributable to Owners of the Parent was computed based on the assumption that the share split was made at the beginning of FY March 2023 Trends in Value of Assets and Operating Results (Non-Consolidated) (Mn JPY, Except Net Income per Share) FY March 2023 FY March 2024 FY March 2025 FY March 2026 Revenue 4,792,312 3,715,650 3,830,479 3,869,839 Net Income 922,579 535,348 723,548 603,727 Net Income per Share (Yen) 294.49 177.56 246.50 210.74 Net Assets 2,494,047 2,437,110 2,584,866 2,811,503 Total Assets 7,539,370 7,838,353 8,030,668 9,290,602 Note 1: Net Income per Share was computed based on the average number of shares outstanding during the fiscal year. Note 2: Figures less than 1.0 million yen are rounded down and figures less than 1/100 yen (in the case of Net Income per Share) are rounded. Note 3: The Company conducted a share split, with each share of common stock being split into two, effective July 1, 2024. Net Income per Share was computed based on the assumption that the share split was made at the beginning of FY March 2023. Matters Related to Directors, Officers and Audit & Supervisory Board Members Status of Managing Officers (As of April 1, 2026) * Serves concurrently as Director Title Name Principal Position(s) / Areas Overseen * President and Chief Executive Officer Kenichi Hori CEO (Chief Executive Officer) * Executive Vice President Kazumasa Nakai CSO (Chief Strategy Officer); Corporate Staff Units (Corporate Planning & Strategy Division, Investment Administrative Division, Corporate Communications Division, Corporate Sustainability Division) Executive Vice President Makoto Sato COO (Chief Operating Officer) of Asia Pacific Business Unit Executive Vice President Toru Matsui COO (Chief Operating Officer) of Americas Business Unit Executive Vice President Tetsuya Daikoku Digital & Infrastructure Solutions Business Unit; Mobility Business Unit I; Mobility Business Unit II; Asia Pacific Business Unit * Senior Executive Managing Officer Tetsuya Fukuda CDIO (Chief Digital Information Officer); Integrated Digital Strategy Division; Mineral & Metal Resources Business Unit; Iron & Steel Products Business Unit; IT & Communication Business Unit; Corporate Development Business Unit Senior Executive Managing Officer Takashi Furutani Basic Materials Business Unit; Performance Materials Business Unit; Nutrition & Agriculture Business Unit; Food Business Unit; Retail Business Unit; East Asia Bloc; Mitsui & Co. Korea Ltd. Senior Executive Managing Officer Kenichiro Yamaguchi Global LNG Business Unit; Integrated Energy Solutions Business Unit; Wellness Business Unit; Americas Business Unit Senior Executive Managing Officer Yoichiro Endo COO (Chief Operating Officer) of Wellness Business Unit Executive Managing Officer Yuichi Takano General Counsel; Corporate Staff Units (Audit & Supervisory Board Member Division, Strategic & Administrative Legal Division, Business Legal Division) Executive Managing Officer Makoto Tanaka CFO (Chief Financial Officer); Corporate Staff Units (CFO Planning & Administrative Division, Global Controller Division, Finance Division, Risk Management Division, Investor Relations Division, Financial Management & Advisory Division I/II/III/IV) Executive Managing Officer Masaya Inamuro CHRO (Chief Human Resources Officer); CCO (Chief Compliance Officer); Corporate Staff Units (Human Resources & General Affairs Division I/II, Logistics Strategy Division); BCM (Business Continuity Plan Management); Japan Bloc; Europe Bloc; Middle East and Africa Bloc; CIS Bloc Executive Managing Officer Kiyoshi Mori Deputy Chief Strategy Officer (Executive Advisor to Global LNG Business Unit; Integrated Energy Solutions Business Unit) Executive Managing Officer Isao Kohiyama President & CEO of PT. Mitsui Indonesia Executive Managing Officer Koichi Wakana General Manager of Chubu Office Executive Managing Officer Daisuke Ishida Chief Representative of Japan Bloc (General Manager of Osaka) Executive Managing Officer Tetsu Watanabe General Manager of Human Resources & General Affairs Division I Executive Managing Officer Masao Kurihara General Manager of Global Controller Division Title Name Principal Position(s) / Areas Overseen Executive Managing Officer Junji Fukuoka President of Mitsui & Co. (Thailand) Ltd. Executive Managing Officer Maroshi Tokoyoda Chief Representative of Europe Bloc Executive Managing Officer Takuya Shirai COO (Chief Operating Officer) of Mobility Business Unit II Managing Officer Makoto Takasugi COO (Chief Operating Officer) of Iron & Steel Products Business Unit Managing Officer Hidemi Takani President & CEO of Mitsui Global Strategic Studies Institute Managing Officer Masaya Tokutani Chief Representative of East Asia Bloc Managing Office Chisato Onda (Eiki) General Manager of Corporate Sustainability Division Managing Officer Taichi Nagino General Manager of Investment Administrative Division Managing Officer Kazuki Shimizu COO (Chief Operating Officer) of Digital & Infrastructure Solutions Business Unit Managing Officer Tetsuya Koide Deputy COO (Chief Operating Officer) of Americas Business Unit; Western States Regional Officer of Mitsui & Co. (U.S.A.), Inc. Managing Officer Masahiko Kurahashi Director of PT CT Corpora Managing Officer Yutaka Sano COO (Chief Operating Officer) of Food Business Unit Managing Officer Teruya Mogi COO (Chief Operating Officer) of Performance Materials Business Unit Managing Officer Naoharu Asaumi COO (Chief Operating Officer) of Retail Business Unit Managing Officer Yasuhiro Uchida Deputy COO (Chief Operating Officer) of Digital & Infrastructure Solutions Business Unit Managing Officer Takashi Yamamura Chair & CEO of Mitsui & Co. (Australia) Ltd. Managing Officer Kyoji Hara COO (Chief Operating Officer) of Global LNG Business Unit Managing Officer Makoto Kodani President & CEO of Aim Services Co., Ltd. Managing Officer Toshitaka Inuzuka COO (Chief Operating Officer) of Nutrition & Agriculture Business Unit Managing Officer Eiji Yanagawa COO (Chief Operating Officer) of Integrated Energy Solutions Business Unit Managing Officer Hayato Yanagisawa President of Mitsui & Co. (Brasil) S.A. Managing Officer Tetsuro Akashi COO (Chief Operating Officer) of IT & Communication Business Unit Managing Officer Atsuko Chitose Deputy COO (Chief Operating Officer) and CSO (Chief Strategy Officer) of Americas Business Unit Managing Officer Yukihiro Enomoto COO (Chief Operating Officer) of Basic Materials Business Unit Managing Officer Shigeyuki Toya COO (Chief Operating Officer) of Corporate Development Business Unit Managing Officer Shinsuke Arai General Manager of Internal Auditing Division Managing Officer Takeshi Mitsui COO (Chief Operating Officer) of Mobility Business Unit I Managing Officer Koichi Wakabayashi Country Chairperson in India Managing Officer Hideaki Konishi COO (Chief Operating Officer) of Mineral & Metal Resources Business Unit Managing Officer Yosuke Matsumoto General Manager of Corporate Planning & Strategy Division Managing Officer Kengo Asano General Manager of Integrated Digital Strategy Division Status of External Directors and External Audit & Supervisory Board Members Status of External Directors The following is a summary of the activities of External Directors and the duties they performed in relation to the roles expected of External Directors. Samuel Walsh (Director since June 2017) Mr. Walsh participated in all 11 Board of Directors meetings held during the fiscal year ended March 31, 2026. He makes proposals and suggestions from a broad-minded standpoint based on his global perspective, excellent management skills, and abundant business management experience cultivated through his long years working in upper management within the automobile industry and as chief executive officer of an international natural resources company, making significant contributions to active discussions at the meetings of the Board of Directors, and to improving the effectiveness of said meetings. In the fiscal year ended March 31, 2026, he served as a member of the Governance Committee (attended all four such meetings), and actively provided his constructive opinions with the aim of creating a more highly effective governance system. Takeshi Uchiyamada (Director since June 2019) Mr. Uchiyamada participated in all 11 Board of Directors meetings held during the fiscal year ended March 31, 2026. He has long been involved in research and development on environmental and safety technologies at Toyota Motor Corporation that could realize a mobility society responding to the needs of the times, as well as in the development of products demanded by consumers, and has exercised his excellent managerial skills as an executive officer of Toyota Motor Corporation. At the Board of Directors meetings, he makes proposals and suggestions from a broad-minded standpoint based on his management experience at a global company and his in-depth knowledge of society in general and makes significant contributions to active discussions at the Board of Directors meetings, and to improving the effectiveness of said meetings. In the fiscal year ended March 31, 2026, as the chair of the Nomination Committee (attended all five such meetings), he exercised his strong leadership in enhancing the transparency and effectiveness of the procedures for the appointment of executives, including the CEO. Masako Egawa (Director since June 2020) Ms. Egawa participated in all 11 Board of Directors meetings held during the fiscal year ended March 31, 2026. She has made significant contributions to active discussions at the Board of Directors meetings, and to improving effectiveness of such meetings, based on her deep insight in finance and corporate management gained through her experience of management as a director of the University of Tokyo and the chancellor of School Juridicial Person Seikei Gakuen, her many years of experience working at global financial institutions, and her research on management of Japanese companies and corporate governance. In the fiscal year ended March 31, 2026, she served as a member of the Governance Committee (attended all four such meetings) and actively expressed her constructive views with the aim of creating a more highly effective governance system. In addition, as the chair of the Remuneration Committee (attending all four such meetings), she exercised her strong leadership in the discussions related to the executive remuneration. Fujiyo Ishiguro (Director since June 2023) Ms. Ishiguro participated in all 11 Board of Directors meetings held during the fiscal year ended March 31, 2026. She has made significant contributions to active discussions at the Board of Directors meetings, and to improving effectiveness of such meetings, based on her developed profound insights about business management through her experience as an External Director of listed companies, in addition to her advanced knowledge of business management and the IT/DX sector gained through her many years of experience as an IT entrepreneur. In the fiscal year ended March 31, 2026, she served as a member of the Nomination Committee (attended all five such meetings) and contributed to the discussions from diverse perspectives with the aim of enhancing the transparency and effectiveness of the procedures for the appointment of executives, including the CEO. Sarah L. Casanova (Director since June 2023) Ms. Casanova participated in all 11 Board of Directors meetings held during the fiscal year ended March 31, 2026. She amassed extensive knowledge of the international consumer business through her experience working for McDonald's in North America, the CIS, and Southeast Asia. She served as Chief Executive Officer of McDonald's Company (Japan) from 2013 to 2019 and demonstrated her excellent management acumen by pursuing growth strategies that have yielded a dramatic improvement in the company's performance. At the Board of Directors meetings, she makes proposals and suggestions from diverse perspectives, based on her profound knowledge of consumer businesses and her management experience in a global business corporation and makes significant contributions to active discussions at the Board of Directors meetings, and to improving the effectiveness of said meetings. In the fiscal year ended March 31, 2026, she served as a member of the Governance Committee (attended all four such meetings), and actively provided her constructive opinions with the aim of creating a more highly effective governance system. Jessica Tan Soon Neo (Director since June 2023) Ms. Tan participated in 10 of 11 Board of Directors meetings during the fiscal year ended March 31, 2026. She has made significant contributions to active discussions at the Board of Directors meetings, and to improving effectiveness of such meetings, based on her amassed knowledge of the IT/DX sector gained through her experience working for IBM and Microsoft and profound knowledge of business management through her role as an External Director of listed companies in Singapore. In the fiscal year ended March 31, 2026, she served as a member of the Remuneration Committee (attended three of four such meetings) and contributed to deepen the discussions related to the executive remuneration. Status of External Audit & Supervisory Board Members The following is a summary of activities of External Audit & Supervisory Board Members. Yuko Tamai (Audit & Supervisory Board Member since June 2022) Ms. Tamai participated in all 11 Board of Directors meetings and all 19 Audit & Supervisory Board meetings held during the fiscal year ended March 31, 2026. She offered advice and expressed opinions based on her knowledge and experience gained as an attorney at law. In the fiscal year ended March 31, 2026, as a member of the Governance Committee (attending all four such meetings), she actively provided opinions that contribute to developing more effective and objective governance. Makoto Hayashi (Audit & Supervisory Board Member since June 2023) Mr. Hayashi participated in all 11 Board of Directors meetings and all 19 Audit & Supervisory Board meetings held during the fiscal year ended March 31, 2026. He offered advice and expressed opinions based on his advanced insight into governance and risk management cultivated through his many years of experience as a public prosecutor. In the fiscal year ended March 31, 2026, as a member of the Nomination Committee (attending all five such meetings), he contributed to the discussions with the aim of enhancing the transparency and effectiveness of the procedures for the appointment of executives, including the CEO. Hiroyuki Takanami (Audit & Supervisory Board Member since June 2025) Mr. Takanami participated in all 8 Board of Directors meetings and all 14 Audit & Supervisory Board meetings held since he took his position during the fiscal year ended March 31, 2026. He offered advice and expressed opinions based on his knowledge and experience gained as a certified public accountant. In the fiscal year ended March 31, 2026, as a member of the Remuneration Committee (attending all two such meetings held since he took his position), he contributed to deepen discussions related to the executive remuneration. (Reference) Member composition of the Company's Audit & Supervisory Board after the Ordinary General Meeting of Shareholders on June 17, 2026 (intended) Name Age Position in the Company Term of office for Audit & Supervisory Board Member Governance Committee Nomination Committee Remuneration Committee 1 Hirotatsu Fujiwara 65 Incumbent Full-time Audit & Supervisory Board Member 3 years 2 Tetsuya Shigeta 62 New Full-time Audit & Supervisory Board Member - 3 Yuko Tamai 60 Incumbent External Independent Audit & Supervisory Board Member 4 years ○ 4 Makoto Hayashi 68 Incumbent External Independent Audit & Supervisory Board Member 3 years ○ 5 Hiroyuki Takanami 66 Incumbent External Independent Audit & Supervisory Board Member 1 year ○ Note: "Independent" indicates that the person meets the independence criteria of the Tokyo Stock Exchange and the Company and has been submitted filing as an independent director. Matters Related to Shares of Mitsui & Co., Ltd. Status of Shares of Mitsui & Co., Ltd. (As of March 31, 2026) Number of shares authorized: 5,000,000,000 shares Number of shares issued: 2,864,666,576 shares (including 17,038,165 shares of treasury stock) Number of shareholders: 430,521 shareholders Note 1: During FY March 2026, in accordance with the provisions of Article 156 of the Companies Act as applied by replacing certain terms under the provisions of Article 165, Paragraph 3 of the same Act, and by resolution of the Board of Directors meetings dated November 5, 2025, the Company purchased 41,075,000 shares of its treasury stock at a total amount of 199,999,903,991 yen through market purchases, via auction market on the Tokyo Stock Exchange from November 6, 2025 through March 19, 2026. Note 2: The Company cancelled 41,075,000 shares of treasury stock as of March 30, 2026, in accordance with resolution of the Board of Directors dated November 5, 2025. Status of Principal shareholders (As of March 31, 2026) Name of Shareholder Investment in the Company Number of shares (thousands) Investment ratio (%) The Master Trust Bank of Japan, Ltd. (trust account) 459,252 16.12 STATE STREET BANK AND TRUST COMPANY 505104 296,732 10.42 Custody Bank of Japan, Ltd. (trust account) 178,755 6.27 Nippon Life Insurance Company 70,141 2.46 STATE STREET BANK AND TRUST COMPANY 505001 55,563 1.95 NATSCUMCO 43,876 1.54 THE CHASE MANHATTAN BANK, N.A. LONDONSECS LENDING OMNIBUS ACCOUNT 37,635 1.32 JP MORGAN CHASE BANK 385781 37,003 1.29 GOVERNMENT OF NORWAY 30,366 1.06 TAIJU LIFE INSURANCE COMPANY LIMITED 27,720 0.97 Note 1: The number of shares is rounded down to the nearest thousand. Note 2: The Company holds 17,038,165 shares of treasury stock as of March 31, 2026. The investment ratios are calculated excluding treasury stock and rounded down to two decimal places. Shares of Mitsui & Co., Ltd. delivered to Directors and Audit & Supervisory Board Members as consideration for execution of duties during FY March 2026 Tenure-linked restricted stock-based remuneration Number of shares Number of persons eligible for delivery Directors (Excluding External Directors) 177,000 6 Note: There are no applicable matters regarding External Directors and Audit & Supervisory Board Members Performance-linked restricted stock-based remuneration Number of shares Number of persons eligible for delivery Directors (Excluding External Directors) 82,000 5 Note: There are no applicable matters regarding External Directors and Audit & Supervisory Board Members Note: For information regarding the stock-based remuneration, please refer to pages 57-61 of the "Notice of the 107th Ordinary General Meeting of Shareholders" posted on the Company's website. (URL: https://www.mitsui.com/jp/en/ir/information/general/index.html ) Matters Related to Subscription Rights to Shares, etc. Overview of the Subscription Rights to Shares, etc. Granted to and Held by Officers, etc. of the Company as Compensation for Execution of Duties as of March 31, 2026 Subscription Rights to Shares Held by Directors, Audit & Supervisory Board Members, and Managing Officers Year of issuance (Date of resolution of issuance) Number of subscription rights to shares Class and number of shares to be issued Issue price Amount of assets to be contributed upon exercise Exercise period FY March 2015 (July 4, 2014) 39 7,800 shares of common stock Issued without contribution 1 yen per share From July 28, 2017 to July 27, 2044 FY March 2016 (July 8, 2015) 41 8,200 shares of common stock Issued without contribution 1 yen per share From July 28, 2018 to July 27, 2045 FY March 2017 (July 13, 2016) 53 10,600 shares of common stock Issued without contribution 1 yen per share From July 29, 2019 to July 28, 2046 FY March 2018 (July 5, 2017) 481 96,200 shares of common stock Issued without contribution 1 yen per share From July 20, 2020 to July 19, 2047 FY March 2019 (July 4, 2018) 440 88,000 shares of common stock Issued without contribution 1 yen per share From July 25, 2021 to July 24, 2048 Breakdown Year of issuance (Date of resolution of issuance) Directors (excluding External Directors) Audit & Supervisory Board Members Managing Officers Number of subscription rights to shares Number of holders Number of subscription rights to shares Number of holders Number of subscription rights to shares Number of holders FY March 2015 (July 4, 2014) 39 1 - - - - FY March 2016 (July 8, 2015) 41 1 - - - - FY March 2017 (July 13, 2016) 53 1 - - - - FY March 2018 (July 5, 2017) 481 2 - - - - FY March 2019 (July 4, 2018) 440 3 - - - - Note 1: Stock-based compensation stock option with stock price conditions for Officers have been abolished pursuant to a resolution of the Ordinary General Meeting of Shareholders held on June 20, 2019. Note 2: The holding status for Managing Officers who concurrently serve as Directors is listed in the Directors field. Note 3: The class and total number of shares to be issued upon exercise of subscription rights to shares as of March 31, 2026 (including those held by retirees) was 281,800 shares of common stock. Note 4: Due to a share split, with each share of common stock being split into two, carried out effective July 1, 2024, the "Class and number of shares to be issued" has been adjusted. [Details of Stock Price Conditions] Holders of subscription rights to shares may no longer exercise the subscription rights to shares after a period of ten years has elapsed from the day after the holders lose their positions as Directors, and/or Managing Officers, and/or Audit & Supervisory Board Members of the Company. When the Company's share price growth rate *1 is equal to or exceeds the TOPIX (Tokyo Stock Price Index) growth rate *2 , all subscription rights to shares granted may be exercised. When the Company's share price growth rate falls below the TOPIX growth rate, only part of the subscription rights to shares granted *3 may be exercised. *1 The Company's share price growth rate shall be calculated by the formula below based on the Company's share price growth rate for the period of three years from the allotment date to the first date of the exercise period. The Company's stock price growth rate = (A + B) / C A: The average closing price for the Company's common stock on the Tokyo Stock Exchange on each day for the three months immediately before the month in which the first date of the exercise period of the subscription rights to shares falls B: The total amount of dividends per common stock of the Company for the period from the allotment date to the first date of the exercise period of the subscription rights to shares C: The average closing price for the Company's common stock on the Tokyo Stock Exchange on each day for the three months immediately before the month on which the allotment date falls *2 The TOPIX growth rate shall be calculated by the formula below based on the TOPIX growth rate for the period of three years from the allotment date to the first date of the exercise period. TOPIX growth rate = D / E D: The average closing share price for TOPIX on the Tokyo Stock Exchange on each day for the three months immediately before the month in which the first date of the exercise period of the subscription rights to shares falls E: The average closing share price for TOPIX on the Tokyo Stock Exchange on each day for the three months immediately before the month on which the allotment date falls *3 Number of exercisable subscription rights to shares = Number of subscription rights to shares granted × (the Company's share price growth rate / TOPIX growth rate) Status of Independent Auditor Name of Independent Auditor Deloitte Touche Tohmatsu LLC Remuneration Paid to Independent Auditor The remuneration paid by the Company and its consolidated subsidiaries to the Independent Auditor relating to FY March 2026 is as follows. (Mn JPY) Classification Audit Fees Non-Audit Fees The Company 932 63 Consolidated subsidiaries 943 2 Total 1,875 65 Note 1: The Company has not drawn any distinction between the remuneration for the audit services pursuant to the Companies Act of Japan and the Financial Instruments and Exchange Act of Japan in the agreement with the Independent Auditor. Note 2: Based upon the Practical Guidelines for Cooperation with Independent Auditors released by the Japan Audit & Supervisory Board Members Association, having obtained necessary materials and received reports from Directors, related departments, and the Independent Auditor, and having reviewed the auditing plans, the status of execution of duties by the Independent Auditor, the grounds for calculation of remuneration estimates and other matters in the previous fiscal year, the Audit & Supervisory Board gives consent to remunerations for the Independent Auditor in accordance with Article 399, Paragraphs 1 and 2 of the Companies Act of Japan. Note 3: Some subsidiaries are subject to audits performed by certified public accountants and audit corporations (including those who have equivalent qualifications in foreign countries) other than the Company's Independent Auditor. Non-Audit Services The Company has engaged its Independent Auditor to provide "comfort letter preparation services" and "advisory services on sustainability information disclosure", etc., being services falling outside the scope of Article 2, Paragraph 1 of the Certified Public Accountants Act (non-audit services). Policy for Decisions on Dismissal or Non-Reappointment of Independent Auditor The Company has the following policy on the dismissal of, and decisions not to reappoint, the Independent Auditor. The tenure of the Independent Auditor is one year, and they may be reappointed. The election, dismissal and/or non-reappointment of the Independent Auditor is/are resolved by the Audit & Supervisory Board to be referred for discussion and resolution at the General Meeting of Shareholders. The reappointment of the Independent Auditor is determined by resolution of the Audit & Supervisory Board. In addition to the case where it is convenient for the Company, in the case that the Independent Auditor has breached or contravened law or regulation such as the Companies Act of Japan or the Certified Public Accountants Act, or has conducted itself in breach of public policy or breached its contract of engagement, the Audit & Supervisory Board considers whether or not it is appropriate to refer the dismissal or non-reappointment of the Independent Auditor to the General Meeting of Shareholders for discussion and resolution. The Audit & Supervisory Board may dismiss the Independent Auditor with the approval of each Audit & Supervisory Board Member if the circumstances outlined in the respective provisions of Article 340, Paragraph 1 of the Companies Act of Japan apply. Necessary Systems to Ensure Appropriate Operations and Status of Operations of the Systems An outline of "Necessary systems to ensure appropriate operations" (pursuant to Article 362, Paragraph 4, Item 6 of the Companies Act of Japan) of the Company and the status of operations of the systems are as follows. In the fiscal year ended March 31, 2026, to operate the necessary systems to ensure appropriate operations, the Company established and maintained each internal control system by holding physical meetings and carrying out visiting audits in combination with online meetings and/or video messages, etc. As for the systems above, further details can be found via the following link on the website of the Company (URL: https://www.mitsui.com/jp/en/company/outline/governance/index.html ). Systems to Ensure that Directors and Employees Comply with Laws and Regulations, and the Articles of Incorporation Commitment to "BUSINESS CONDUCT GUIDELINES FOR EMPLOYEES AND OFFICERS OF MITSUI & CO., LTD." by officers and employees, based on the Company's positioning of Compliance and Integrity, namely, compliance with laws and regulations and maintaining corporate ethics and employee ethics as one of the most important issues for all officers and employees in the course of business. The Company has established the Compliance Committee, headed by the Chief Compliance Officer (CCO), promotes integrity mindset, and carries out compliance training and other measures to ensure thorough compliance. The Company establishes several internal and external whistle-blowing lines and conducts periodical monitoring to ensure its compliance regime is observed while also taking disciplinary actions on violations. Audit & Supervisory Board Members monitor the observance of all relevant laws and regulations and the Articles of Incorporation, among other things, by Directors and employees in the performance of their duties. The Company appointed External Directors to strengthen the supervisory function of the Board of Directors and established advisory committees (Governance Committee, Nomination Committee and Remuneration Committee) that include External Members as committee members, in order to enhance objectivity and transparency of management. Status of Operations of the Above Systems Compliance and Integrity The Company makes serious efforts on a global group basis to ensure that all officers and employees are aware of the importance of compliance and that they act with integrity, while preventing compliance violations by maintaining its status as an organization with integrity. Almost five years have passed since the establishment of "Mitsui & Co. Group Conduct Guidelines - With Integrity", and after deliberation at the Executive Committee and the Board of Directors, reflecting the changing trends in the world, the Company disclosed a revised version in June 2024. (URL: https://www.mitsui.com/jp/en/sustainability/governance/compliance/index.html ) Each fiscal year, the Company ensures confirmation of the pledges on the "BUSINESS CONDUCT GUIDELINES FOR EMPLOYEES AND OFFICERS OF MITSUI & CO., LTD." by all officers and employees and conducts various training programs to ensure sound compliance awareness and integrity are in place. In the fiscal year ended March 31, 2025, we prepared E-learning lessons based on actual incidents that have occurred and all officers and employees undertook these lessons. Additionally, the theme for "With Integrity Month", held in November 2025, was "Exploring Integrity in the Digital and AI Era - Maintaining Our Trust from Society and Building Bright Future". Group-wide programs were conducted to encourage consideration of both the risks of information leakage (safety net) and the benefits of improved decision-making quality and operational efficiency through information sharing (merits). These programs also served as an opportunity to raise awareness about new information utilization and management. Initiatives included the issuance of messages from the President and the management team, team discussions, lectures on AI governance, and the production of live-action videos. Video messages by External Members relaying episodes where they felt integrity was important are also distributed internally. Concerning the operational status of the compliance framework, further improvements to the framework are made through active deliberations in the reports given to the Executive Committee and the Board of Directors semiannually. In addition, the Company examines and carries out recurrence prevention measures and preventive measures against incidents of non-compliance through deliberation at the Compliance Committee (held twice in the fiscal year ended March 31, 2026, and will be renamed to the Integrity Committee in the fiscal year ending March 31, 2027), which is attended by Chief Operating Officers of business units and which adopts a business frontline perspective. Furthermore, the Company conducted a compliance awareness survey in the fiscal year ended March 31, 2026 and with the cooperation of each unit, continued to strengthen initiatives to prevent the occurrence of compliance issues while measuring organizational working environment, harassment prognosis, and so forth from numerical data and free-form comments from employees. In addition, while analyzing and confirming the causes of incidents of non-compliance that are similar in type to those that occur within the Group, the Company is carrying out efforts to promote individual measures aimed at the eradication of non-compliant activities. Regarding the whistleblowing system, which serves as the core internal control mechanism for discovering problems, the Company introduced the anonymous whistleblowing response system in the fiscal year ended March 31, 2025, in addition to the existing reporting and consultation channels, with the aim of improving confidence in the whistleblowing system and encouraging employees to use it, thereby promoting the environment that facilitates speaking up if they believe that there is a compliance-related issue. Monitoring by the Audit & Supervisory Board Members The Audit & Supervisory Board Members conduct audits of the decision-making process of the management team through attending the Board of Directors meetings and other important meetings, such as meetings of the Executive Committee and inspecting decision-making documents, and monitor the execution of duties through auditing activities including regular meetings with the management team and coordination with the Independent Auditor and the Internal Auditing Division. Strengthening the Supervisory Function of the Board of Directors and Enhancing the Objectivity and Transparency of Management The Company appointed six External Directors from diverse backgrounds to utilize their expert knowledge and experience in management and oversight. External Directors provide opinions and viewpoints based on various specialties and are significantly contributing to strengthening the supervisory functions through diverse analyses of topics and issues deliberated by the Board of Directors. In order to ensure the effective exercise of the Board of Directors' supervisory function, the Company regularly reviews the criteria for matters to be submitted to the Board of Directors for resolution or reporting to the Board of Directors, and solicits opinions from Directors and Audit & Supervisory Board Members regarding Board agenda items and themes for free discussion sessions. In the review of the Board of Directors' resolution and reporting criteria conducted in April 2026, the Company clarified that matters determined by the Executive Committee to be submitted to the Board of Directors for resolution or reporting shall be submitted to the Board of Directors for resolution or reporting, even if they do not individually meet the prescribed criteria, thereby promoting the further enhancement of the framework for the Board's supervisory function. For the fiscal year ended March 31, 2026, free-discussion sessions for Directors and Audit & Supervisory Board Members were held in September 2025 on the themes of "Post-current Medium-term Management Plan Grand Design" and "Human Capital Management". While the Governance Committee (four meetings), Nomination Committee (five meetings), and Remuneration Committee (four meetings) carried out discussion in light of the opinions of External Members and put effort into ensuring the objectivity and transparency of management, each advisory committee made further efforts to report to and share information with the Board of Directors. The Governance Committee discussed evaluation of the effectiveness of the Board of Directors for the fiscal year ended March 31, 2026 and a revision of internal rules and guidelines as to Board of Directors resolutions and reporting criteria, among other matters. The Nomination Committee continued to work to enhance the information and materials provided to External Members and discussed the succession plan of Directors/Managing Officers. The Remuneration Committee discussed the remuneration level towards the contribution of medium- to long-term corporate value under global competitive environment, and performance-linked restricted stock-based remuneration. In addition, the External Members Meeting, which consists of External Directors and External Audit & Supervisory Board Members, convened twelve times during the fiscal year ended March 31, 2026, to discuss topics that included feedback on dialogue with capital markets, and the business domains and strategies. Furthermore, each year, the Company conducts an analysis and evaluation of the effectiveness of the Board of Directors, taking into account, among other things, self-evaluations by each Director and each Audit & Supervisory Board Member. For the fiscal year ended March 31, 2026, the Company engaged a third-party expert to conduct this evaluation. After deliberation at the External Members Meeting, Governance Committee, and Executive Committee, the Board of Directors resolved at the meeting of the Board of Directors held in April 2026 that the effectiveness of the Board of Directors for the fiscal year ended March 31, 2026 has been appropriately ensured. Systems to Store and Control Information Related to Duties Performed by Directors In accordance with its Rules on Information Management etc., the Company stores and controls important information such as the minutes of the General Meetings of Shareholders and the Board of Directors meetings. Status of Operations of the Above Systems To properly evaluate its decision-making process, the Company promptly creates, stores and manages the minutes from important meetings, such as the General Meetings of Shareholders and the Board of Directors meetings. Furthermore, the Company implements thorough information management based on the Rules on Information Management etc., and of confidential information, information requiring particularly high-level control is indicated as "Classified and Sensitive Information" and placed under stricter control limiting the information handlers. Regulations and Systems Related to Management of Risk of Loss The Chief Operating Officers of business units and regional business units of the Company manage risks of losses ("Risks") that arise from businesses within the scope of their authority. Corporate Staff Unit of the Company have established an integrated risk management system to holistically manage the various Risks that the Company faces in its businesses, centered on the Executive Committee and the Portfolio Management Committee. The Company responds to crises and emergency situations by establishing the Crisis Response Headquarters, etc. in accordance with the "Crisis Response Headquarters Regulations" and the "Emergency Business Continuity Management Regulations". Status of Operations of the Above Systems The Company appropriately operates a system for the segregation of authority and an internal approval system, and the Corporate Staff Unit oversees and supports the decision-making of the Business Units, thus thoroughly managing the risks arising from business activities. Furthermore, through the prior setting of credit limits, etc. for customers and monitoring by specialized divisions, the Company manages quantitative Risks such as credit risk and country risk. In the fiscal year ended March 31, 2026, the Portfolio Management Committee held nine meetings and continued to formulate portfolio strategies and provide appropriate risk management at the company-wide level by monitoring portfolios, cash flow allocations across the entire company, status of quantitative risks, and other matters, and by reviewing the status of Control Self-Assessment initiatives of affiliated companies. The Executive Committee deliberated on risk exposure and controls by risk category, and country-specific risk response policies, and reviewed the administration of compliance systems and countermeasure status against cyber security risks. These initiatives were also reported to the Board of Directors. Systems to Ensure Effective and Efficient Execution of Duties by Directors Efficient management performance is pursued through having the Board of Directors oversee each Director in the performance of his/her duties and the use of a Managing Officer System. The Company has worked to enhance efficient and appropriate management decisions through substantial discussions in various committees, such as the Executive Committee and the Portfolio Management Committee. The Company has constructed a business unit system and regional unit system (Global Matrix Structure) to enable cross-sectional and timely management decisions, and implemented an internal approval system where supervising Managing Officers make the final decision in the best interest of the Company, following deliberations conducted by the relevant Corporate Staff Unit. Management initiatives are implemented in accordance with the Medium-term Management Plan and annual business plans, with the Board of Directors regularly verifying upon progress. Status of Operations of the Above Systems The Company smoothly operates an internal approval system through coordination between the Business Units and the Corporate Staff Unit. Furthermore, through thorough evaluation at the various meetings, including the meetings of the Executive Committee and the meetings of the Portfolio Management Committee, the Company realizes appropriate and efficient management decision making. To evaluate the progress of actions taken in response to management issues, proposals and reports are carried out at the Board of Directors meetings regarding company-wide issues, not limited to individual proposals. In the fiscal year ended March 31, 2026, proposals and reports were made regarding the topics such as the operational status of the Group's compliance system, the status of sustainability management promotion activity, occupational health & safety and well-being management, asset portfolio review, risk exposure and risk controls, and cyber securities updates. Furthermore, the Company reviews the various rules related to internal procedures, including a review of the internal regulations on matters to be resolved or reported at the meeting of the Board of Directors, as needed, working to make the execution of operations more efficient. Systems to Ensure Proper Operations in the Group Based on the general principle of maintaining the autonomy of its affiliated companies, the Company appropriately manages affiliated companies, understanding the management status and maintaining a group-wide management framework, while providing for the Company's participation in the management and/or governance of its affiliated companies as appropriate to its equity investor status. The Company requires its major affiliated companies to conduct regular auditing to check their observance of all relevant laws and regulations, and internal regulations. The Company requests to build an appropriate whistle-blowing line for affiliated companies, requests the prohibition of both uncovering the identity of whistleblowers and their disadvantageous treatment, and, in the event that affiliated companies detect a violation of compliance by the officers or employees of the Company, the matter may be reported through the whistle-blowing lines, either internally or externally. Status of Operations of the Above Systems Depending on their relationship with the Company, the Company requires its subsidiaries and associated companies to comply with its "Mitsui & Co., Ltd. Corporate Governance and Internal Control Principles", or to develop internal control systems equivalent to the Company's system. Moreover, in addition to promoting awareness of "Mitsui & Co. Group Conduct Guidelines - With Integrity", revised in June 2024, the Company revised the "Guidelines on the Establishment of Compliance Systems at Affiliated Companies", which is adopted on a global group basis, by adding to and enhancing items related to regular discussions on the dissemination of compliance and integrity held at the Board of Directors meetings of each company, and systems to respond important regulatory risks such as those related to anti-monopoly and bribery prevention laws, and it works to help enhance the autonomous and self-reliant compliance structure at affiliated companies. Furthermore, the Company designates its officers and employees as the supervising officers of the affiliated companies to manage the affiliated companies in accordance with the "Rules on Duties of Supervising Officers of Affiliated Companies". The Company dispatches its staff of the Internal Auditing Division to the major affiliated companies to serve as a Full-time Audit & Supervisory Board Member, and strengthens focus group-wide audit and oversight. Also, while increasing the effectiveness of the consolidated group's business operations, the Company established the "Mitsui Global Business Management Guidelines" with the goal of maximizing the added value created by each company. In doing so, the Company is promoting organic cooperation between each group company and sharing of the management resources, functions, and networks that each company possesses. In the fiscal year ended March 31, 2026, the Company effectively conducted a compliance awareness survey again at major affiliated companies in Japan and overseas and worked to enhance the compliance of the Group. While domestic affiliated companies used external attorneys at law and a third-party organization designated by the Company as whistle-blowing lines, the Company demanded strict prohibition of both uncovering the identity of whistleblowers and their disadvantageous treatment in compliance with the revised Whistleblower Protection Act in Japan. At overseas affiliated companies also, the Compliance Supervising Officers of each region lead efforts to establish routes for reporting and seeking advice that can be used with greater peace of mind in accordance with local laws and regulations and other local characteristics. We have established the Global Group Hotline, which is used to report issues related to anti-monopoly and bribery prevention laws in Japan and overseas and seek advice, and to understand and resolve issues through such hotlines. Matters Related to Employees Assigned to Assist Audit & Supervisory Board Members, the Independence of Such Employees from Directors, and Ensuring the Effectiveness of Audit & Supervisory Board Members' Directions to Such Employees The Company establishes the Audit & Supervisory Board Member Division and allocates three or more staff. The organizational change and personnel change of employees of the Audit & Supervisory Board Member Division are determined with the approval of the Audit & Supervisory Board Members. Status of Operations of the Above Systems As of March 31, 2026, the Audit & Supervisory Board Member Division is staffed with five dedicated employees to assist the Audit & Supervisory Board Members in their duties. Furthermore, decisions on the personnel change of employees of the Audit & Supervisory Board Member Division are made by the responsible Managing Officers with the approval of the Audit & Supervisory Board Members. Systems to Report to and Collecting Information by Audit & Supervisory Board Members Audit & Supervisory Board Members may attend the Board of Directors meetings, the meetings of the Executive Committee and other important meetings, receive important in-house documentation and materials, have regular meetings with Chair, President, CCO and other Directors, Managing Officers, or other management staff, and receive information on the Company including information on affiliated companies. Directors should immediately report to the Audit & Supervisory Board in the event of discovery of circumstances that carry the potential risk of serious loss or consequence to the Company. Audit & Supervisory Board Members audit and supervise the state of the management of its major affiliated companies through visiting of those affiliated companies and collaborating with the Audit & Supervisory Board Members of those companies. Status of Operations of the Above Systems The abovementioned system has been established and is in operation, in which Audit & Supervisory Board Members promptly receive reports from the person in charge of the relevant department in the event that there is a problem that could have a significant impact on the Company. Also, through attending the meetings of the Board of Directors and its advisory committees, having regular meetings with Chair and President, sharing information and exchanging opinions with External Directors and having regular meetings with the Independent Auditor and the Internal Auditing Division, Audit & Supervisory Board Members work to collect and examine information of the Company. In addition to the above, Full-time Audit & Supervisory Board Members work to collect and examine information on the day-to-day management performance of the Company, through attending important meetings including meetings of the Executive Committee, having regular meetings with the Directors, Managing Officers, and General Managers of the Corporate Staff Unit, sharing information and viewing important documentation, exchanging opinions at meeting with full-time audit & supervisory board members of subsidiaries and other means, and share those information with External Audit & Supervisory Board Members at the Audit & Supervisory Board and via written communication. The Audit & Supervisory Board Members designate some of the affiliated companies positioned important for the fiscal year both in Japan and overseas as "Important Affiliated Companies Designated by the Audit & Supervisory Board", exchange views with the management of affiliated companies and the local independent auditors of these companies, and proactively collect information on the management status of affiliated companies on a global group basis. When collecting information, the Audit & Supervisory Board Members work to find the best mix that effectively utilizes both making actual visits to these designated affiliated companies and holding online meetings with their management. As outlined above, the Company has established and effectively operates the abovementioned system in which important matters and problematic events arising in relation to the global business management of the Company are reported to Audit & Supervisory Board Members in a timely and appropriate manner. Other Systems to Ensure Effective Auditing by Audit & Supervisory Board Members Directors maintain an appropriate environment for auditing and supervising of the management activities of the Audit & Supervisory Board Members. The Audit & Supervisory Board Members may request cooperation from the Internal Auditing Division, each Legal Division, and the Global Controller Division, as well as other divisions with regard to their auditing and supervising. The Audit & Supervisory Board Members maintain close contact with the Independent Auditor. The Audit & Supervisory Board Members may request the assistance of legal counsel and other external expert professional advisors. The Company is responsible for the costs associated with the execution of Audit & Supervisory Board Members' duties. Status of Operations of the Above Systems Regarding the audit environment and the cooperation given to Audit & Supervisory Board Members by the Internal Auditing Division, each Legal Division, the Global Controller Division, and other divisions, the Members hold regular meetings with and receive reports from those corporate units and also gather information needed for the audit activities by investigating specific individual cases and continually monitoring particular items with the cooperation of the relevant corporate units. Audit & Supervisory Board Members conduct effective auditing in collaboration with the Internal Auditing Division and the Independent Auditor through monthly regular individual meetings with each of them, triangular meetings, and feedback sessions carried out by the Internal Auditing Division in the presence of the audited division (audited affiliated company), in and at which the Audit & Supervisory Board Members participate and state independent comments on the audited division or company. Audit & Supervisory Board members also help to assess the appropriateness of accounting audits by exchanging opinions with the Independent Auditor on topics that include the independence of the Independent Auditor, its frameworks for the performance of its duties, and its quality control frameworks. Furthermore, the Audit & Supervisory Board consults as necessary with legal counsel on auditing operations. The Company secured the required budget for the execution of the Audit & Supervisory Board Members' duties, including related legal fees, and bore the expenses related to the execution of Audit & Supervisory Board Members' duties. Systems and Basic Philosophy Related to the Rejection of Anti-Social Forces The Company ensures all officers and employees fully understand the Company's basic philosophy regarding the rejection of anti-social forces, including the forbidding of transactions with anti-social forces or with parties that have relations with anti-social forces and cooperates with external professionals such as the police and attorneys at law, through the establishment of a response unit for the handling of such matters. Status of Operations of the Above Systems The Company ensures the thorough rejection of anti-social forces by all officers and employees, and in individual business activities, conducts screening utilizing a checklist for the elimination of anti-social forces at the stage of consideration of new projects. Consolidated Financial Statements Consolidated Statements of Changes in Equity Year ended March 31, 2026 (Mn JPY) Attributable to owners of the parent Non-controlling interests Total equity Common stock Capital surplus Retained earnings Other components of equity Treasury stock Total Balance as at April 1, 2025 343,442 407,732 5,801,064 1,073,611 (79,234) 7,546,615 216,017 7,762,632 Profit for the year 833,971 833,971 30,350 864,321 Other comprehensive income for the year 875,027 875,027 17,178 892,205 Comprehensive income for the year 833,971 875,027 1,708,998 47,528 1,756,526 Transaction with owners: Dividends paid to the owners of the parent (301,817) (301,817) (301,817) Dividends paid to non-controlling interest shareholders (20,710) (20,710) Acquisition of treasury stock (200,029) (200,029) (200,029) Sales of treasury stock (1,144) (406) 1,552 2 2 Cancellation of treasury stock (179,149) 179,149 - - Compensation costs related to share-based payment 721 12,552 (75) 813 14,011 14,011 Equity transactions with non-controlling interest shareholders (681) 645 (36) 7,342 7,306 Transfer to retained earnings (13,370) 13,370 - - Balance as at March 31, 2026 344,163 418,459 6,140,218 1,962,653 (97,749) 8,767,744 250,177 9,017,921 Year ended March 31, 2025 (Supplementary information) (Mn JPY) Attributable to owners of the parent Non-controlling interests Total equity Common stock Capital surplus Retained earnings Other components of equity Treasury stock Total Balance as at April 1, 2024 343,062 391,856 5,551,736 1,323,821 (68,627) 7,541,848 228,095 7,769,943 Profit for the year 900,342 900,342 21,214 921,556 Other comprehensive income for the year (239,627) (239,627) (1,979) (241,606) Comprehensive income for the year 900,342 (239,627) 660,715 19,235 679,950 Transaction with owners: Dividends paid to the owners of the parent (274,157) (274,157) (274,157) Dividends paid to non-controlling interest shareholders (29,098) (29,098) Acquisition of treasury stock (400,038) (400,038) (400,038) Sales of treasury stock (1,013) (896) 1,913 4 4 Cancellation of treasury stock (386,945) 386,945 - - Compensation costs related to share-based payment 380 9,845 83 573 10,881 10,881 Equity transactions with non-controlling interest shareholders 7,044 318 7,362 (2,215) 5,147 Transfer to retained earnings 10,901 (10,901) - - Balance as at March 31, 2025 343,442 407,732 5,801,064 1,073,611 (79,234) 7,546,615 216,017 7,762,632 Consolidated Statements of Comprehensive Income [Supplementary Information] (Unaudited) (Mn JPY) Year ended March 31, 2026 Year ended March 31, 2025 Profit for the year 864,321 921,556 Other comprehensive income: Items that will not be reclassified to profit or loss: Financial assets measured at FVTOCI 542,393 (138,071) Remeasurements of defined benefit pension plans 13,436 (21,178) Share of other comprehensive income of investments accounted for using the equity method 6,520 (5,804) Income tax relating to items not reclassified (179,017) 51,413 Items that may be reclassified subsequently to profit or loss: Foreign currency translation adjustments 175,647 (76,628) Cash flow hedges (72,285) 30,766 Share of other comprehensive income of investments accounted for using the equity method 395,356 (93,019) Income tax relating to items that may be reclassified 10,155 10,915 Total other comprehensive income 892,205 (241,606) Comprehensive income for the year 1,756,526 679,950 Comprehensive income for the year attributable to: Owners of the parent 1,708,998 660,715 Non-controlling interests 47,528 19,235 Segment Information [Supplementary Information] (Unaudited) Year ended March 31, 2026 (from April 1, 2025 to March 31, 2026) (Mn JPY) Mineral & Metal Resources Energy Machinery & Infrastructure Chemicals Iron & Steel Products Lifestyle Revenue 1,921,641 3,230,684 1,523,232 2,933,647 626,845 3,409,644 Gross profit 249,084 202,466 209,529 251,683 52,513 218,422 Share of profit (loss) of investments accounted for using the equity method 73,678 44,049 239,824 21,749 19,377 67,252 Profit for the year attributable to owners of the parent 253,604 164,213 225,852 67,523 18,929 51,975 Core Operating Cash Flow 330,384 262,047 184,067 102,605 17,922 7,809 Total assets at March 31, 2026 4,313,238 4,181,385 4,427,304 2,241,755 862,431 3,091,075 Innovation & Corporate Development Total All other Adjustments and eliminations Consolidated total Revenue 347,472 13,993,165 2,057 - 13,995,222 Gross profit 139,702 1,323,399 5,724 (970) 1,328,153 Share of profit (loss) of investments accounted for using the equity method (19,196) 446,733 - 709 447,442 Profit for the year attributable to owners of the parent 58,966 841,062 20,657 (27,748) 833,971 Core Operating Cash Flow 46,432 951,266 22,714 4,925 978,905 Total assets at March 31, 2026 2,655,302 21,772,490 10,312,013 (11,262,975) 20,821,528 Year ended March 31, 2025 (from April 1, 2024 to March 31, 2025) (Mn JPY) Mineral & Metal Resources Energy Machinery & Infrastructure Chemicals Iron & Steel Products Lifestyle Revenue 1,941,858 3,967,511 1,483,679 2,979,453 653,605 3,339,668 Gross profit 263,867 189,990 200,055 256,439 47,771 192,420 Share of profit (loss) of investments accounted for using the equity method 82,026 57,144 225,639 23,057 21,174 59,357 Profit (loss) for the year attributable to owners of the parent 285,366 173,499 232,858 75,892 13,153 53,665 Core Operating Cash Flow 357,865 363,377 145,187 90,572 6,046 18,113 Total assets at March 31, 2025 2,986,681 3,425,109 3,735,893 2,062,516 777,289 3,013,688 Innovation & Corporate Development Total All other Adjustments and eliminations Consolidated total Revenue 295,405 14,661,179 1,441 - 14,662,620 Gross profit 134,399 1,284,941 4,041 (616) 1,288,366 Share of profit (loss) of investments accounted for using the equity method 25,116 493,513 - 563 494,076 Profit (loss) for the year attributable to owners of the parent 87,284 921,717 (42,839) 21,464 900,342 Core Operating Cash Flow 27,031 1,008,191 7,677 11,607 1,027,475 Total assets at March 31, 2025 1,899,430 17,900,606 9,240,410 (10,329,507) 16,811,509 Note 1: "All other" includes the corporate staff unit which provides financing services and operations services to the Group and affiliated companies. Total assets of "All other" at March 31, 2025 and March 31, 2026 includes cash, cash equivalents and time deposits related to financing activities, and assets of the corporate staff unit and certain subsidiaries related to the above services. Note 2: Transfers between reportable segments are made at cost plus a markup. Note 3: Profit for the year 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. Note 4: Core Operating Cash Flow is calculated by deducting the total of the "Changes in operating assets and liabilities" from the "Cash flows from operating activities", and further deducting the "Repayments of lease liabilities" in the "Cash flows from financing activities" from it, in the consolidated statements of cash flows. Notes to Consolidated Financial Statements (Year ended March 31, 2026) Ⅰ. Basic Significant Matters Regarding Preparation of Consolidated Financial Statements Subsidiaries and equity method investees Subsidiaries 278 Mitsui Energy Development Co., Ltd., Mitsui Iron Ore Development Pty. Ltd., Mitsui-Itochu Iron Pty. Ltd., Mitsui & Co. Iron Ore Exploration & Mining Pty. Ltd., Mitsui Bussan Commodities Ltd. and others Equity method investees (associated companies and joint ventures) 168 Japan Australia LNG (MIMI) Pty. Ltd., Penske Automotive Group, Inc., IHH Healthcare Berhad and others A total of 527 subsidiaries and equity method investees are excluded from the above. These include companies which are sub-consolidated or accounted for under the equity method by subsidiaries other than trading subsidiaries. Primary investee over which Mitsui & Co., Ltd. (the "Company") does not have control despite ownership percentage of more than 50% is as follows: Nutrinova Netherlands B.V. The Company is the largest shareholder, owning 70% of Nutrinova Netherlands B.V. ("Nutrinova"). The Company entered into a shareholder's agreement with the second largest shareholder owning 30% of Nutrinova's voting shares. Based on the agreement, significant decisions regarding Nutrinova's operations require unanimous consent by the Company and the second largest shareholder. The rights given to the second largest shareholder in the agreement are considered as substantive participating rights, and the Company does not individually control Nutrinova. Accordingly, the Company accounts for its investment in Nutrinova under the equity method. Basis of consolidated financial statements The consolidated financial statements have been prepared on the basis of International Financial Reporting Standards ("IFRS Accounting Standards"), in compliance with Article 120, paragraph 1 of the Ordinance on Company Accounting. In accordance with the provision of the paragraph, certain disclosures required on the basis of IFRS Accounting Standards have been omitted. Summary of Significant Accounting Policies Consolidation The consolidated financial statements include the accounts of the Company, its subsidiaries (which are controlled either directly or indirectly through voting or similar rights), and structured entities ("SEs"). They are collectively called the "companies", where the Company or one of its subsidiaries have control. SEs are entities controlled through means other than voting or similar rights. The word "control" is used based on its definition in IFRS 10 "Consolidated Financial Statements", so that the companies consider all facts and circumstances, including existing rights and substantive rights included within agreements with investees. The consolidated financial statements include financial statements of certain subsidiaries with different fiscal year-ends from that of the Company, as the Company considers it impracticable to unify the fiscal year-ends of such subsidiaries with that of the Company. Major consolidated subsidiaries with different fiscal year-ends include subsidiaries that operate exploration, development and production of oil and gas. As the Company is mainly a non-operator in such operations and the financial information is prepared by the operators, the Company is unable to obtain necessary information from the operators in time for the preparation of the Company's year-end consolidated financial statements. For the same reason, it is also impracticable to prepare additional financial statements for these subsidiaries as of the same date as the Company's year-end date. Therefore, financial information for such subsidiaries with fiscal year-ends of December 31 is included in the Company's consolidated results. There are other consolidated subsidiaries for which it is also considered impracticable to unify on fiscal year-ends with on the Company's due to requirements of local laws and regulations, and it is also impracticable to prepare additional financial statements for these subsidiaries as of the same date as the Company's year-end date due to certain facts and circumstances such as local business practices and the environment surrounding their respective accounting systems. The fiscal year-ends of such consolidated subsidiaries are mainly December 31. Adjustments are made for the effects of significant transactions or events that occur between the end of the fiscal years of such consolidated subsidiaries and that of the Company. Changes in the companies' ownership interests that are made while retaining their controlling financial interests in their subsidiaries are accounted for as equity transactions. When the companies cease to have their controlling financial interests, any retained investments are measured at their fair value at that date. The difference between the fair value and the carrying amount of the retained non-controlling investments is recognized as gain (loss) on securities and other investments-net. Investments in associated companies and joint arrangements Associated companies are entities over which the Company and its subsidiaries own 20% or more of the voting rights. The exceptions to this rule include the entities in which it can be clearly demonstrated that the Company and its subsidiaries are unable to exercise significant influence over the financial and operating policy decisions of the investees, or those whereby the companies have the ability to exercise significant influence despite holding less than 20% ownership. Investments in associated companies are accounted for using the equity method. Joint arrangements are arrangements in which decisions about relevant activities require the unanimous consent of the parties sharing control. When the parties that have joint control of the arrangement have substantial rights to the assets and obligations for the liabilities, relating to the arrangement, the arrangement is a joint operation. When an arrangement is structured through a separate vehicle and the parties that have joint control of the arrangement have rights to the net assets of the arrangement, the arrangement is classified as a joint venture. A joint operation is accounted for by recognizing the assets, liabilities, revenues and expenses relating to its interest in the joint operation. A joint venture is accounted for using the equity method. Robe River Iron Associates (the Company's percentage of ownership: 33%), which conducts iron ore mining activities in Australia, is a major joint operation. Losses recognized under the equity method are recorded in Share of Profit (Loss) of Investments Accounted for Using the Equity Method in the Consolidated Statements of Income or in Other comprehensive income in the Consolidated Statements of Comprehensive Income, considering the priority of recoverability of assets related to the losses among other things. The consolidated financial statements include some associated companies, joint ventures and joint operations with different fiscal year-ends from that of the Company. It is impracticable to unify the fiscal year-ends due to the requirement of local laws and regulations and relationships with other shareholders. It is also impracticable to prepare additional financial statements as of the same date as the financial statements of the companies due to certain factors such as local business practices and the environment surrounding their respective accounting systems. The fiscal year-ends of associated companies, joint ventures and joint operations are generally December 31. Adjustments are made for the effects of significant transactions or events that occur between the end of the fiscal years of such associated companies, joint ventures and joint operations and that of the Company. The companies discontinue the use of the equity method from the date when an investment ceases to be an associated company or a joint venture. Any retained investments are measured at their fair value at that date, and the difference between the fair value and the carrying amount of the retained investments is recognized as gain (loss) on securities and other investments-net. Regarding impairment of investments accounted for using the equity method, please refer to "Impairment and its reversal of non-financial assets and investments accounted for using the equity method" . Business combinations In accordance with IFRS 3 "Business Combinations", all business combinations are accounted for using the acquisition method. This is a method where all assets and liabilities of an acquired company, including non- controlling interests, are measured at fair value. The differences between consideration transferred and the net fair value of identifiable assets and liabilities are recognized as goodwill when the consideration transferred is in excess of the net fair value of identifiable assets and liabilities. If the net fair value of identifiable assets and liabilities exceed the consideration transferred, the excess is recognized immediately as a gain in the Consolidated Statements of Income for the year. Foreign currency translation The assets and liabilities of foreign subsidiaries and equity method investees are translated into Japanese yen using the spot exchange rate at the respective reporting date. All income and expense accounts are translated into Japanese yen using average rates of exchange for the respective reporting period. The resulting translation adjustments are recognized in other components of equity. Foreign currency transactions are translated into functional currencies of individual companies using the spot exchange rate at the date of transactions. At the end of each reporting period, monetary assets and liabilities, and non-monetary assets and liabilities measured at fair value denominated in foreign currencies are translated into functional currencies using the spot exchange rate at the reporting date. The exchange differences arising from translation are recognized in profit for the year. Non-monetary items measured at historical cost denominated in foreign currencies are translated using the spot exchange rate at the date of transaction. Cash equivalents Cash equivalents are defined as short-term (original maturities of three months or less), highly liquid investments which are readily convertible into cash and have no significant risk of change in value. These include certificates of deposit, time deposits, financing bills and commercial paper with original maturities of three months or less. Inventories Inventories, consisting mainly of commodities and materials for sale, are measured at the lower of cost and net realizable value. The cost of inventory items that is not ordinarily interchangeable is assigned by using specific identification of their individual costs. For those items that are interchangeable, the costs are mainly assigned by using the weighted-average cost formula. Inventories acquired for the purpose of being sold in the near term to profit from fluctuations in price are measured at fair value less costs to sell, and changes in the fair value less costs to sell are recognized in profit for the year. Financial instruments Non-derivative financial assets Trade and other receivables are recognized at fair value on initial recognition. Regular purchases of other financial assets are recognized at fair value on the trade date. These financial assets are derecognized if they satisfy any of the following conditions: -the contractual rights to the cash flows from the financial asset have expired; or -the contractual rights to receive the cash flows of the financial asset have been transferred, and substantially all risks and rewards of the ownership of financial asset have been transferred. Non-derivative financial assets are classified and measured as follows: Non-derivative financial assets that are debt instruments are measured at amortized cost if they meet the following two criteria: held for the purpose of collecting contractual cash flows, and have contractual terms which give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortized cost is calculated by using the effective interest rate method. For financial assets measured at amortized cost, the companies consider if an impairment has occurred. Please see 3) Impairment of financial assets regarding impairment . Equity financial instruments and non-derivative financial assets that do not satisfy the requirements to be measured at amortized cost are measured at fair value through profit or loss ("FVTPL"). However, for certain equity financial instruments held primarily for the purpose of enhancing the revenue base by maintaining or strengthening the trade relationship with the investees, the companies elect at initial recognition to designate these instruments as at fair value through other comprehensive income ("FVTOCI"). When financial assets measured at FVTOCI are derecognized, the accumulated other components of equity are directly reclassified to retained earnings without being recognized in profit for the year. Dividend income received on financial assets measured at FVTOCI is recognized in profit for the year in principle. Non-derivative financial liabilities The companies have non-derivative financial liabilities including corporate bonds and loans payable, trade and other payables, and other financial liabilities. Corporate bonds issued by the companies are recognized on the issue date and all other non-derivative financial liabilities are recognized on the trade date at fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial liabilities. Subsequent to initial recognition, non-derivative financial liabilities are measured at amortized cost using the effective interest method. The companies derecognize a non-derivative financial liability only when it is extinguished (that is, the underlying obligation specified in the contract is discharged, cancelled or expires). Impairment of financial instruments For financial assets that are measured at amortized costs and financial guarantee contracts, the companies measure the loss allowance at an amount equal to 12-month expected credit losses if the credit risk on a financial asset has not increased significantly since initial recognition, and measure the loss allowance at an amount equal to lifetime expected credit losses if the credit risk on a financial asset has increased significantly since initial recognition. However, for trade receivables recognized based on the IFRS 15 " Revenue from Contracts with Customers " and contract assets, the loss allowance is measured at an amount equal to the lifetime expected credit loss without assessing whether the credit risk on a financial asset has increased significantly since initial recognition. When determining significant increases in the credit risk and measuring expected credit losses, both quantitative and qualitative information is considered to provide reason and support. The information includes reasonable and available forward-looking information, as well as internal information such as historical credit loss experience, past due information and internal credit ratings. The loss allowance is measured by a function using probability of default, loss given default, discount factor and exposures based on this information. In addition, the companies determine that the credit risk on a financial asset has increased significantly since initial recognition in principal when contractual payments are more than 30 days past due. Information such as significant financial difficulty of the issuer or the debtor or a breach of contract such as payments past due are used for determining if any of the counterparties is in the default. If the debtor is under legal reorganization and in financial failure or has issues repaying debts due to financial difficulty, although it may not yet be in financial failure, or the principal and interest payments are 90 days past due as of the reporting date, the companies determine that the default has occurred and an objective evidence of credit impairment exists. The loss allowance for the credit-impaired financial asset is also measured in the same way as financial assets that are not credit-impaired. In addition, loss allowance for certain credit-impaired financial asset is individually measured by the estimation of expected credit losses by using the present value of expected future cash flows discounted at the effective interest rate based on the original terms of the contract, or at fair value of the collateral if their value depends on the collateral based on the latest information and events. The financial assets are directly written off when certain conditions are met. The following are examples of when it is reasonably determined that all or part of a financial asset is not collectable: write-off of financial assets by legal liquidation, obtaining of evident facts that suggest that it is impossible for the debtors to repay their debts from their perceived solvency and/or asset situation, and arrearage of payment after a certain period of time after a suspension of business operations. The provision or the reversal of loss allowance is recognized in profit for the year. Finance income and costs Finance income and costs consist of items such as interest income, interest expense, dividend income and gain or loss on hedging instruments recognized in profit or loss for the year. Interest income and interest expense are recognized using the effective interest method. Dividend income is recognized on the date when the rights of the companies to received dividends vest. See 5) Derivative instruments and hedging activities for accounting for gains or losses arising from hedging instruments. Derivative instruments and hedging activities The companies are exposed to market risks related to foreign currency exchange rates, interest rates and commodity prices in the ordinary course of business. In order to mitigate or reduce these risks, the companies use derivative instruments, such as foreign exchange forward contracts, currency swap agreements, interest rate swap agreements, commodity futures, forwards, options and swap contracts. These derivative instruments hedge the exposure to changes in the fair value or expected future cash flows of recognized assets and liabilities, unrecognized firm commitments or forecasted transactions. The companies also use derivative instruments and non-derivative financial instruments, such as foreign currency-denominated debt, to hedge foreign currency exposure to net investments in foreign operations. The companies recognize all derivative instruments as an asset or a liability at fair value as at the date on which they become party to the relevant agreement. Subsequent to initial recognition, derivative instruments are measured at fair value with any changes in fair value accounted for as follows: Fair value hedges Derivative instruments held for the purpose of eliminating the risk of changes in the fair value of hedged items are designated as fair value hedges and subject to the assessment of hedge effectiveness. To the extent that they satisfy the requirements for hedge accounting, the companies include the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the derivative instruments designated as hedging instruments mainly as interest expense. Cash flow hedges Derivative instruments held for the purpose of offsetting the variability in cash flows of the hedged items are designated as cash flow hedges. To the extent that they are effective, any changes in fair value are recognized in other comprehensive income until cash flows of the hedged item affect gain or loss. The amounts previously recognized in other comprehensive income are reclassified into profit for the year mainly as revenue, cost, interest expense and other income (expense)-net when earnings are affected by the hedged items. Hedges of net investments in foreign operations Foreign currency transaction gain or loss on derivative instruments and non-derivative financial instruments that are designated as hedging instruments and deemed effective to reduce the foreign currency exposure of a net investment in a foreign operation are recorded as foreign currency translation adjustments within other comprehensive income to the extent they are effective as a hedge. The amounts in other components of equity are reclassified into profit for the year mainly as gain (loss) on securities and other investments-net when the related investment is sold completely or partially, or the liquidation of the investment is completed. The ineffective portion of the hedging instruments' gain or loss and the component of the derivative instruments' gain or loss excluded from the assessment of hedge effectiveness are recorded immediately in profit for the year mainly as other income (expenses)-net. Derivative instruments for trading purposes The Company and certain subsidiaries use derivative instruments for trading purposes within certain position and loss limits. Derivative instruments for trading purposes are measured at fair value and changes in fair value are recorded in profit for the year as other revenue. Offsetting financial assets and financial liabilities Financial assets and financial liabilities are offset and the net amount is presented in the consolidated statements of financial position when, and only when, the companies currently have a legally enforceable right to set off the recognized amounts and intend either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Leasing The companies are engaged in finance and operating lease businesses. Leases are classified as finance leases whenever they transfer substantially all the risks and rewards of ownership to the lessee. Leases other than finance leases are classified as operating leases. For finance leases, unearned income is amortized to income over the lease term at a constant periodic rate of return on the net investment. Operating lease income is recognized as revenue over the term of underlying leases using the straight-line method. The companies are also lessees of various assets. If a contract is, or contains, a lease, leases are recognized as a lease liability and a corresponding right-of-use asset at the date at which the asset is available for use by the companies. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to interest expense over the lease term at a constant rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. Lease term includes periods of an option to extend the lease if the lessee is reasonably certain to exercise that option and an option to terminate the lease if the lessee is reasonably certain not to exercise that option. Note that short-term leases and leases for which the underlying asset is of low value apply exemption rules of the standards, and recognize the lease payments associated with those leases as an expense mainly on straight-line basis over the lease term. Property, plant and equipment Property, plant and equipment are measured based on the cost model and are stated at cost less accumulated depreciation and impairment losses. Depreciation of property, plant and equipment, except for land and projects in progress, is computed principally under the straight-line method, using rates based on the estimated useful lives of the related assets. The estimated useful lives for buildings and vessels and aircrafts are primarily 2 to 50 years and 3 to 20 years, respectively. Equipment and fixtures are primarily depreciated using the straight-line method (the estimated useful lives are primarily 2 to 30 years) or the unit-of-production method. Mineral rights are primarily amortized using the unit-of-production method. Investment property Investment property is measured by using the cost model and is stated at cost less accumulated depreciation and impairment losses. Depreciation of investment property is computed principally under the straight-line method, using rates based upon the estimated useful lives of the related investment property. The estimated useful lives for investment properties are primarily 2 to 50 years. Intangible assets Intangible assets include goodwill arising from the acquisition of subsidiaries. Intangible assets are measured based on the cost model and intangible assets with finite estimated useful lives are stated at cost less accumulated amortization and impairment losses. Goodwill and intangible assets with indefinite estimated useful lives are not amortized and are presented at cost less accumulated impairment losses. Software is primarily amortized over 5 years using the straight-line method. Impairment and its reversal of non-financial assets and investments accounted for using the equity method Non-financial assets and investments accounted for using the equity method are quarterly assessed to determine whether there is any indication of impairment. If any such indication exists, the recoverable amounts of the non-financial asset and investment are estimated. Goodwill and intangible assets with indefinite useful lives are tested for impairment annually. For investments accounted for using the equity method, the entire carrying amount of the investment is tested for impairment as a single asset. The recoverable amount of an asset or a cash-generating unit ("CGU") is the higher of its fair value less costs of disposal and its value in use and is determined as an individual asset, when the asset generates cash inflows that are largely independent of those from other assets or groups of assets. If the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and the carrying amount is written down to its recoverable amount. The impairment loss is then recognized in loss for the year. For assets other than goodwill, an assessment is made quarterly as to whether there is any indication of impairment that previously recognized impairment losses may no longer exist or may have decreased. A previously recognized impairment loss is reversed as income in profit for the year. The amount is reversed to the extent that the increased carrying amount of an asset does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset in prior years only if there has been a change in the assumptions used to determine the recoverable amount of the asset since the last impairment loss was recognized. An impairment loss recognized for goodwill is not reversed. Oil and gas producing activities Oil and gas exploration and development costs are accounted for using the successful efforts method of accounting. The costs of acquiring properties, costs of drilling and equipping exploratory wells, and costs of development wells and related plant and equipment are capitalized, and amortized using the unit-of-production method. Exploratory well costs are expensed if economically recoverable reserves are not found. Other exploration costs, such as geological and geophysical costs, are expensed as incurred. Proved properties are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the proved properties are determined to be impaired, an impairment loss is recognized based on the recoverable amount. Unproved properties are assessed whenever there is an indication of impairment, and if the unproved properties are determined to be impaired, impairment losses are charged to expense. The companies make a comprehensive evaluation and record impairment of unproved property based on various factors, such as remaining mining rights periods, examples of sales and purchases in neighboring areas, drilling results and seismic interpretations. Mining operations Mining exploration costs are expensed as incurred until commercial viability has been established. The exploration costs incurred after commercial viability has been established and development costs are capitalized, and are depreciated using either the unit-of-production method or straight-line method based on the proven and probable reserves. In surface mining operations, it is necessary to remove overburden and other waste materials to access mineral deposits. The costs of removing waste materials are referred to as "stripping costs". During the development of a mine, before production commences, such costs are generally capitalized as part of development costs. Removal of waste materials continues during the production stage of the mine. Such post-production stripping costs in relation to minerals produced during the fiscal year are variable production costs to be considered as a component of mineral inventory costs. These are recognized as a component of costs in the same period as the related revenues from sales of the minerals. In contrast, post-production stripping costs incurred that relate to minerals to be produced in the subsequent fiscal year are capitalized, and are amortized using either the unit-of-production method or straight-line method based on the proved and probable reserves. Provisions Provisions are recognized when the companies have a present obligation (legal or constructive) as a result of a past event, it is probable that outflows of resources embodying economic benefits will be required to settle the obligation, and reliable estimates of the amount of the obligations can be made. Provisions are measured as the best estimate of the amount of expenditure required to settle the present obligation at the end of the reporting period. If the effect of the time value of money is material, provisions are discounted to their present value using a pretax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding...

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