丸紅（8002） – Summary of Consolidated Financial Results For the Fiscal Year Ended March 31, 2022 (IFRS basis)

Financial Results FYE 3/2022 SSuummmmaarryy ooff CCoonnssoolliiddaatteedd FFiinnaanncciiaall RReessuullttss FFoorr tthhee FFiissccaall YYeeaarr EEnnddeedd MMaarrcchh 3311,, 22002222 ((IIFFRRSS bbaassiiss)) (April 1, 2021 – March 31, 2022) *This document is an English translation of materials originally prepared in Japanese.The Japanese original shall be considered the primary version. （TSE Code: 8002） Summary of Consolidated Financial Statements for the Fiscal Year Ended March 31, 2022 (IFRS basis)May 6, 2022(URL https://www.marubeni.com/en/)Code number: 8002KAKINOKI Masumi President and CEO, Member of the BoardFURUYA Hirofumi General Manager, Media Relations Sec., Corporate Communications Dept.TEL (03) 3282 – 2112Company name: Marubeni CorporationListed: TokyoRepresentative: Inquiries:Expected date of annual meeting of shareholders :Expected date of quarterly financial statement report : Expected date of the beginning of delivery of dividends :Supplementary explanations of quarterly business results: IR meeting on financial results:June 24, 2022June 24, 2022June 6, 2022PreparedTo be held (for institutional investors and analysts)1. Consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(1) Consolidated business results RevenueOperating profitProfit before taxProfit for the year(Remarks)Figures are rounded to the nearest million.%: change from the previous fiscal yearProfit attributable toowners of the parentComprehensiveincomefor the periodFYE 3/2022FYE 3/2021(millions of yen)8,508,5916,332,414(%) (millions of yen)284,490141,55334.4(7.3)(%) (millions of yen)528,790281,742101.05.7(%)87.7-(millions of yen)434,950230,981(%) (millions of yen)424,320223,25688.3-(%) (millions of yen)648,522361,96190.1-(%)79.2-Earnings per share(basic)Earnings per share(diluted)Profit ratio to equityattributable to owners ofthe parentProfit before tax ratioto total assets(yen)242.89126.32(yen)242.44126.17(%)23.015.5(%)7.04.3FYE 3/2022FYE 3/2021(Reference) Share of profits of associates and joint ventures(Note)FYE 3/2022FYE 3/2021236,555141,2641. “Operating profit” is presented in accordance with Japanese accounting practice for investors’ convenience and is not required by IFRS. “Operatingprofit” is the sum of “Gross trading profit”, “Selling, general and administrative expenses” and “Provision for doubtful accounts” stated in ConsolidatedStatements of Comprehensive Income.2. “Earnings per share” (basic and diluted) are based on “Profit attributable to owners of the parent” excluding the amount not attributable to ordinaryshareholders.3. “Profit ratio to equity attributable to owners of the parent” is based on “Equity attributable to owners of the parent” and “Profit attributable to owners ofthe parent”, respectively excluding the amounts not attributable to ordinary shareholders.4. Due to earlier application of Amendments to IAS 12 Income Taxes (issued in May 2021), results for the fiscal year ended March 31, 2021, have beenre-presented retrospectively. Percentages of change from the previous fiscal year ended March 31, 2021 are not presented.million yenmillion yen(2) Consolidated financial positionTotal assetsTotal equityEquity attributable toowners of the parentEquity attributable toowners of the parent ratioFYE 3/2022FYE 3/2021(millions of yen)8,255,5836,935,749(millions of yen)2,338,3281,907,507(millions of yen)2,242,1801,814,793Equity per shareattributableto owners of the parent(%)27.226.2(yen)1,217.00903.86(Note)1. “Equity per share attributable to owners of the parent” is based on “Equity attributable to owners of the parent” excluding the amount not attributable toordinary shareholders.2. Due to earlier application of Amendments to IAS 12 Income Taxes (issued in May 2021), figures as of Mar-31-2021, have been re-presented(3) Consolidated cash flowsFYE 3/2022FYE 3/20212. Dividends informationOperating activitiesInvesting activitiesFinancing activitiesCash and cash equivalentsat the end of year(millions of yen)311,919397,069(millions of yen)(79,660)(116,256)(millions of yen)(419,637)(68,503)(millions of yen)578,636745,858Annual dividends per share1st Quarter-end 2nd Quarter-end3rd Quarter-end 4th Quarter-endTotalTotal amount of cashdividends per annumDividend payout ratio(Consolidated)Dividend on equityattributable to owners of theparent (Consolidated)FYE 3/2021FYE 3/2022 FYE 3/2023 (forecast)(yen)—(yen)11.0025.5030.00(yen)—(yen)22.0036.5030.00(yen)33.0062.0060.00(millions of yen)57,308107,170(%)26.125.525.9(%)4.05.8(Note)1. “Dividend on equity attributable to owners of the parent (Consolidated)” is based on “Equity attributable to owners of the parent” excluding amounts notattributable to ordinary shareholders.2. Due to earlier application of Amendments to IAS 12 Income Taxes (issued in May 2021), “Dividend payout ratio (Consolidated)” and “Dividend onequity attributable to owners of the parent (Consolidated)” as of Mar-31-2021, have been re-presented retrospectively.(Remarks)3．Consolidated earnings forecast for the fiscal year ending March 31, 2023 (April 1, 2022 – March 31, 2023)%: change from the previous fiscal yearProfit attributable to owners of the parentEarnings per shareattributable to owners of the parent (basic)FYE 3/2023(millions of yen)400,000(%)(5.7)(yen)231.72(Note)”Earnings per share attributable to owners of the parent (basic)” is based on “Profit attributable to owners of the parent” excluding the amount not attributable toordinary shareholders.*Notes(1) Changes in Principal Subsidiaries during the Fiscal Year under Review (Changes in Specified Subsidiary) : Yes Excluded companies: Marubeni Oil & Gas (U.K.) Limited(2） Changes in accounting principles and accounting estimates ①Changes in accounting principles required by IFRS ②Changes other than ① ③Changes in accounting estimate (Note) Please refer to P.25 “3. Consolidated Financial Statements and Notes, (6) Changes in Accounting Principles” for details.: None: Yes: None(3) Number of issued shares (Common shares) ①Number of issued shares at the end of the term (Treasury stock is included) ②Number of treasury stock at the end of the term ③Average number of outstanding shares during the term (Reference) Overview of non-consolidated business resultsMarch 31, 2022March 31, 2021March 31, 2022March 31, 2021Year ended March 31, 2022Year ended March 31, 20211,738,475,4971,737,940,90016,360,3361,505,2991,734,758,8421,736,256,068Non-consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(1) Non-consolidated business results (Remarks)%: change from the previous fiscal yearRevenueTotal volume of trading transactionsOperating profitOrdinary profitNet profit for the yearFYE 3/2022FYE 3/2021(millions of yen)1,755,653-(%)–(millions of yen)-3,531,917(%)-(22.3)(millions of yen)(85,104)(37,660)(%)–(millions of yen)56,703104,141(%)(45.6)0.8(millions of yen)41,80785,579(%)(51.1)719.2(2) Non-consolidated financial positionFYE 3/2022FYE 3/2021FYE 3/2022FYE 3/2021Net profit for the year per shareNet profit for the year per share(diluted)(yen)24.0949.28(yen)24.0549.22(Note)Due to application of the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc., results for the fiscalyear ended March 31, 2021, have been re-presented.Total assetsNet assetsEquity ratioNet assets per share(millions of yen)3,401,0213,470,822FYE 3/2022FYE 3/2021(Reference) Total equity563,599655,255million yenmillion yen(millions of yen)564,655656,495(%)16.618.9(yen)327.24377.32※The Summary of Consolidated Financial Statements is not subject to review by certified accountants or audit firms.※Descriptions relating to the proper use of financial forecasts and other special notes (Notes to the description about future, other) The descriptions about future such as the above forecasts are based upon available information and assumptions, as of the time of the announcement date, about uncertain factors which would influence future businesses. Actual results might be influenced materially by various factors in the future. For cautionary notes concerning assumptions made in the earnings forecast and use of the earnings forecast, please refer to p.15 “1. (5) Outlook for the Fiscal Year Ending March 31, 2023” . (How to access supplementary explanations on business results and the details of briefing on business results) Supplementary explanations on business results will be made available on the Company’s website on Friday, May 6, 2022. The Company is scheduled to hold an IR meeting on financial results for institutional investors and analysts on Tuesday, May 10, 2022, and to post the script of the meeting together with the materials used at the briefing on the Company’s website at the earliest possible time. 【Table of Contents of Attached Materials】 1. Business Review (1) Business Environment (2) Operating Results (3) Cash Flows (4) Financial Position (5) Outlook for the Fiscal Year Ending March 31, 2023 (6) Update on the Marubeni Group’s Russia-related business given the crisis situation in Ukraine 2. Basic Rationale behind Choice of Accounting Principles 3. Consolidated Financial Statements and Notes (1) Consolidated Statements of Financial Position (2) Consolidated Statements of Comprehensive Income (3) Consolidated Statements of Changes in Equity (4) Consolidated Statements of Cash Flows (5) Notes Related to Going Concern Assumptions (6) Changes in Accounting Principles (7) Segment information (8) Earnings per Share (9) Material Subsequent Events 2 2 3 14 14 15 17 18 19 19 21 22 24 25 25 28 29 29 1Marubeni Corporation Consolidated Financial Results 1. Business Review From the fiscal year ended March 31, 2022, the Marubeni Group moved to adopt earlier application of the amendments to International Accounting Standard 12 “Income Taxes” (hereinafter “IAS 12 “Income Taxes””). Year-on-year comparisons and analyses are based on figures to which the same accounting standard was retrospectively applied. The details of the changes in accounting principles are stated in the section “(6) Changes in Accounting Principles” in “3. Consolidated Financial Statements and Notes.” (1) Business Environment 31, 2022. The following is an overview of the economic environment for the fiscal year ended March The world’s two great economic powers―the U.S. and China―continued to demonstrate relatively strong economic growth, but consumer spending was limited for a time in the U.S. owing mainly to the impact of COVID-19, while in China, there were phases during which business activity was weighed down by strict infection prevention measures and electric power shortages. Economic conditions in other regions differed from country to country, depending on whether restrictions on activities to prevent the spread of COVID-19 were tightened or relaxed, but overall the global economy continued to see solid growth. As inflation became evident in many countries, major developed economies in North America and Europe as well as emerging economies began to normalize monetary policy, including through policy interest rate hikes. Many primary commodity prices rose sharply amid a general upward trend driven by tight supply and demand and heightened tensions between Russia and Ukraine. WTI crude oil prices reached the highest level since 2008, while the prices of copper, coking coal, aluminum, etc. reached record highs. Iron ore also reached a record high before dropping back down after the Chinese government announced a policy of curbing steel production, but it trended up again thereafter. 2Marubeni Corporation Consolidated Financial Results (2) Operating Results Under the aforementioned business environment, consolidated operating results for the fiscal year ended March 31, 2022, are as follows. RevenueGross trading profit Selling, general and administrative expenses Provision for doubtful accountsOperating profit Interest expense – net of interest income Dividend income Other non-operating income Gains on investment securities Gains (losses) on property, plant and equipment Other – net Share of profits of associates and joint venturesProfit for the year before tax Provision for income taxProfit for the year attributable to owners of the parent Non-controlling interestsFiscal year ended March 31,20212022(Millions of yen) Variance8,508,5912,176,1776,332,414675,418(529,326)(4,539)141,553(12,503)16,209(4,781)7,727(8,825)(3,683)141,264281,742(50,761)230,981223,2567,725895,331(606,551)(4,290)284,490(10,900)24,379(5,734)11,183(4,946)(11,971)236,555528,790(93,840)434,950424,32010,630219,913(77,225)249142,9371,6038,170(953)3,4563,879(8,288)95,291247,048(43,079)203,969201,0642,905 (Note 1) Figures are rounded to the nearest million yen unless otherwise stated. (Note 2) “Operating profit” is presented in accordance with Japanese accounting practice for investors’ convenience and is not required by IFRS. “Operating profit” is the sum of “Gross trading profit” and “Selling, general and administrative expenses” including “Provision for doubtful accounts” stated in Consolidated Statements of Comprehensive Income. (Note 3) “Other non-operating income” is the sum of “Gains on investment securities”, “Gains (losses) on property, plant and equipment” and “Other – net” stated in Consolidated Statements of Comprehensive Income. 3Marubeni Corporation Consolidated Financial Results Revenue Revenue was up 2,176.2 billion yen (34.4%) from the year-earlier period to 8,508.6 billion yen. Mainly increased in Agri Business segment. Gross trading profit Gross trading profit increased 219.9 billion yen (32.6%) from the year-earlier period to 895.3 billion yen. Main increases and decreases by operating segment are the following. -Agri Business: Increase of 89.4 billion yen Profit increase in Gavilon’s fertilizer business and Helena against the backdrop of strong demand for agri-input products and higher commodity prices -Metals & Mineral Resources: Increase of 46.8 billion yen Profit increase in the Australian coking coal business and the Australian and Canadian aluminum businesses in accordance with higher commodity prices -Energy: Increase of 29.7 billion yen Profit increase in the oil and gas E&P due mainly to higher crude oil and gas prices, etc. -Power Business: Decrease of 20.5 billion yen Provision for additional costs due to delay in construction and others in the EPC project (construction contract) in Taiwan Selling, general and administrative expenses Selling, general and administrative expenses increased 77.2 billion yen (14.6%) from the year-earlier period to 606.6 billion yen, due to an increase in personnel expenses following the improved earnings, Tokyo head office relocation costs, and a rebound from the voluntary restraint due to COVID-19. Provision for doubtful accounts to 4.3 billion yen. Provision for doubtful accounts decreased 0.2 billion yen (5.5%) from the year-earlier period As a result, operating profit for the year under review increased 142.9 billion yen year on year (101.0%) to 284.5 billion yen. Interest expense – net of interest income Interest expense – net of interest income decreased 1.6 billion yen (12.8%) year on year to 10.9 billion yen. 4Marubeni Corporation Consolidated Financial Results Dividend income Dividend income increased 8.2 billion yen (50.4%) year on year to 24.4 billion yen. Non-operating other-net billion yen. Non-operating other – net decreased 1.0 billion yen (19.9%) year on year to negative 5.7 Share of profits of associates and joint ventures Share of profits of associates and joint ventures increased 95.3 billion yen (67.5%) from the year-earlier period to 236.6 billion yen. Main increase by operating segment is the following. -Metals & Mineral Resources: Increase of 97.4 billion yen Profit increase in the Chilean copper business, the Australian coking coal business, and the Australian iron ore business due to higher commodity prices, and profit increase in steel products business As a result, profit before tax for the year under review increased 247.0 billion yen (87.7%) compared to the year-earlier period to 528.8 billion yen. Provision for income tax Provision for income tax increased 43.1 billion yen (84.9%) to 93.8 billion yen. As a result, profit for the year increased 204.0 billion yen (88.3%) from the year-earlier period to 435.0 billion yen, and profit attributable to owners of the parent (net profit) for the year ended March 31, 2022, increased 201.1 billion yen (90.1%) year on year to 424.3 billion yen. 5Marubeni Corporation Consolidated Financial Results Results for each operating segment for the fiscal year ended March 31, 2022, are as follows. Lifestyle RevenueGross trading profitOperating profitShare of profits of associates and joint venturesProfit attributable to owners of the parentFiscal year ended March 31,20212022123,05818,2332,048552,058(Millions of yen) Variance(28,617)(760)(656)280(248)94,44117,4731,3923351,810Segment assets (reference) Gross trading profit decreased 0.8 billion yen (4.2%) year on year to 17.5 billion yen due to 94,15994,149(10)decrease in sales of clothing and others. Operating profit decreased 0.7 billion yen (32.0%) year on year to 1.4 billion yen. Share of profits of associates and joint ventures increased 0.3 billion yen (509.1%) year on year to 0.3 billion yen. As a result, net profit decreased 0.2 billion yen (12.1%) year on year to 1.8 billion yen. ICT & Real Estate Business RevenueGross trading profitOperating profitShare of profits of associates and joint venturesProfit attributable to owners of the parentFiscal year ended March 31,20212022360,105115,10827,01368318,556(Millions of yen) Variance16,882(744)(3,395)1,675(613)376,987114,36423,6182,35817,9436,308Segment assets (reference) Gross trading profit decreased 0.7 billion yen (0.6%) year on year to 114.4 billion yen due to lower domestic real estate sales. In addition, as a result of higher overhead expenses 449,829456,137stemming from a rebound in operating activities previously suspended voluntarily in response to the impact of COVID-19 in the domestic mobile phone sales business, operating profit declined 3.4 billion yen (12.6%) year on year to 23.6 billion yen. Share of profits of associates and joint ventures increased 1.7 billion yen (245.2%) year on year to 2.4 billion yen due to higher real estate sales in China. As a result, net profit decreased 0.6 billion yen (3.3%) year on year to 17.9 billion yen. 6Marubeni Corporation Consolidated Financial Results Forest Products RevenueGross trading profitOperating profitFiscal year ended March 31,20212022(Millions of yen) Variance231,800200,599(31,201)24,0352,728(1,441)(2,127)285,93138,17615,7876427,62514,14113,0592,0839,752Share of profits (losses) of associates and joint venturesProfit (loss) attributable to owners of the parentSegment assets (reference) Gross trading profit increased 14.1 billion yen (58.8%) year on year to 38.2 billion yen as a 315,53529,604result of profit increase in MUSI Pulp project due mainly to the improvement in pulp market prices and profit increase in wood-chip business. Operating profit increased 13.1 billion yen (478.7%) year on year to 15.8 billion yen. Share of profits (losses) of associates and joint ventures improved 2.1 billion yen ( – %) year on year to 0.6 billion yen, due to the non-recurrence of impairment loss posted on production equipment in the year-earlier period. As a result, net profit (loss) improved 9.8 billion yen ( – %) year on year to positive 7.6 billion yen. Food I RevenueGross trading profitOperating profitShare of profits of associates and joint venturesProfit attributable to owners of the parentFiscal year ended March 31,20212022(Millions of yen) Variance643,31449,0788,8705,4487,125740,20351,4448,5634,69414,50996,8892,366(307)(754)7,38424,271Segment assets (reference) Gross trading profit increased 2.4 billion yen (4.8%) year on year to 51.4 billion yen mainly 379,010403,281owing to profit increase in marine product sales business. However, operating profit decreased 0.3 billion yen (3.5%) year on year to 8.6 billion yen. Share of profits of associates and joint ventures decreased 0.8 billion yen (13.8%) from the year-earlier period to 4.7 billion yen due to profit decrease in domestic retail businesses. Nevertheless, net profit increased 7.4 billion yen (103.6%) year on year to 14.5 billion yen due to the gains from sale of the North American wild salmon business. 7Marubeni Corporation Consolidated Financial Results Food II RevenueGross trading profitOperating profitShare of profits of associates and joint venturesProfit attributable to owners of the parentSegment assets (reference)Fiscal year ended March 31,20212022633,476796,00760,05534,4312,67721,199313,01271,67443,7112,05035,357376,018(Millions of yen) Variance162,53111,6199,280(627)14,15863,006 Gross trading profit increased 11.6 billion yen (19.3%) year on year to 71.7 billion yen due to the robust performance in the beef processing and sales business, etc. Operating profit increased 9.3 billion yen (27.0%) year on year to 43.7 billion yen. Share of profits of associates and joint ventures decreased 0.6 billion yen (23.4%) year on year to 2.1 billion yen because of the profit decline in Chinese broiler chicken business. In addition to the above, due mainly to an improvement in foreign currency translation gains and losses, net profit increased 14.2 billion yen (66.8%) year on year to 35.4 billion yen. Agri Business RevenueGross trading profitOperating profitFiscal year ended March 31,20212022(Millions of yen) Variance2,795,466198,68051,2333,01442,4264,087,7261,292,260288,118108,8794,56870,77489,43857,6461,55428,348Share of profits of associates and joint venturesProfit attributable to owners of the parentSegment assets (reference) Gross trading profit increased 89.4 billion yen (45.0%) from the year-earlier period to 288.1 1,957,0451,402,869554,176billion yen due to profit increases in Gavilon’s fertilizer business and Helena against the backdrop of strong demand for agri-input products and higher commodity prices. Operating profit increased 57.6 billion yen (112.5%) year on year to 108.9 billion yen. Share of profits of associates and joint ventures increased 1.6 billion yen (51.6%) from the year-earlier period to 4.6 billion yen. Increase in operating profit resulted in the net profit increase of 28.3billion yen (66.8%) year on year to 70.8 billion yen, despite deterioration in foreign currency translation gains and losses and Gavilon’s reorganization-related costs. 8Marubeni Corporation Consolidated Financial Results Chemicals RevenueGross trading profitOperating profitFiscal year ended March 31,20212022(Millions of yen) Variance403,569558,816155,24738,95518,2531,37515,29742,16720,4792,11517,2033,2122,2267401,90629,333Share of profits of associates and joint venturesProfit attributable to owners of the parentSegment assets (reference) Gross trading profit increased 3.2 billion yen (8.2%) year on year to 42.2 billion yen despite 283,728313,061the non-recurrence of the strong olefin trade seen in the previous fiscal year, due to the overall favorable performances in other commodities. Operating profit increased 2.2 billion yen (12.2%) year on year to 20.5 billion yen. Share of profits of associates and joint ventures increased 0.7 billion yen (53.8%) to 2.1 billion yen, due to the profit increase in synthetic rubber manufacturing and sales business. As a result, net profit increased 1.9 billion yen (12.5%) year on year to 17.2 billion yen. Energy RevenueGross trading profitOperating profitShare of profits of associates and joint venturesProfit attributable to owners of the parentFiscal year ended March 31,20212022447,84037,2953,5541,08811,063(Millions of yen) Variance714,719266,87966,99034,3305,20537,71129,69530,7764,11726,648Segment assets (reference) Gross trading profit increased 29.7 billion yen (79.6%) year on year to 67.0 billion yen, 546,622171,576718,198mainly as a result of the profit increase in the oil and gas E&P due mainly to higher crude oil and gas prices. Operating profit increased 30.8 billion yen (866.0%) year on year to 34.3 billion yen. Share of profits of associates and joint ventures increased 4.1 billion yen (378.4%) from the year-earlier period to 5.2 billion yen. Increase in operating profit resulted in the net profit increase of 26.6 billion yen (240.9%) year on year to 37.7 billion yen, despite the losses related to withdrawal from uneconomical fields in oil and gas E&P (US Gulf of Mexico), etc. 9Marubeni Corporation Consolidated Financial Results Metals & Mineral Resources RevenueGross trading profitOperating profitShare of profits of associates and joint venturesProfit attributable to owners of the parentSegment assets (reference)Fiscal year ended March 31,20212022295,38020,9792,93561,43661,382871,790(Millions of yen) Variance129,72646,75345,68597,445129,278198,271 425,10667,73248,620158,881190,6601,070,061Gross trading profit increased 46.8 billion yen (222.9%) year on year to 67.7 billion yen because of the profit growth in the Australian coking coal business and the Australian and Canadian aluminum businesses due to rising commodity prices. Operating profit improved 45.7 billion yen ( – %) year on year to 48.6 billion yen. Share of profits of associates and joint ventures increased 97.4 billion yen (158.6%) year on year to 158.9 billion yen as a result of profit increases in the Chilean copper business, Australian coking coal business and the Australian iron ore business due to higher commodity prices, and profit increase in steel products business. As a result, net profit increased 129.3 billion yen (210.6%) year on year to 190.7 billion yen. Power Business RevenueGross trading profit (loss)Operating lossShare of profits of associates and joint venturesProfit (loss) attributable to owners of the parentSegment assets (reference)Fiscal year ended March 31,20212022169,33611,515(24,993)28,3969,971741,162(Millions of yen) Variance18,153(20,528)(23,769)(12,088)(36,860)381,253 187,489(9,013)(48,762)16,308(26,889)1,122,415Gross trading profit (loss) deteriorated 20.5 billion yen ( -% ) year on year to negative 9.0 billion yen, because of provision for additional costs due to delay in construction and others in the EPC project (construction contract) in Taiwan. Operating loss worsened 23.8 billion yen (95.1%) year on year to 48.8 billion yen. Share of profits of associates and joint ventures decreased 12.1 billion yen (42.6%) year on year to 16.3 billion yen mainly because of the impairment loss on gas-fired power related business and one-time loss on the IPP business. As a result, net profit (loss) deteriorated 36.9 billion yen ( – %) year on year to negative 26.9 billion yen. 10Marubeni Corporation Consolidated Financial Results Infrastructure Project RevenueGross trading profitOperating lossShare of profits of associates and joint venturesProfit attributable to owners of the parentFiscal year ended March 31,20212022(Millions of yen) Variance22,1529,992(5,480)11,0106,80323,08610,594(5,898)10,4847,309934602(418)(526)506Segment assets (reference) Gross trading profit increased 0.6 billion yen (6.0%) year on year to 10.6 billion yen due to 227,780237,83610,056profit increase in overseas plant EPC projects (construction contract). Operating loss worsened 0.4 billion yen (7.6%) to 5.9 billion yen from the year-earlier period. Share of profits of associates and joint ventures deceased 0.5 billion yen (4.8%) year on year to 10.5 billion yen. However, due to the non-recurrence of impairment loss on overseas infrastructure business posted in the previous year, net profit increased 0.5 billion yen (7.4%) from the year-earlier period to 7.3 billion yen. Aerospace & Ship RevenueGross trading profitOperating profitShare of profits of associates and joint venturesProfit attributable to owners of the parentFiscal year ended March 31,2021202256,49014,6154,1903,0593,190(Millions of yen) Variance29,50816,70615,7504,77723,45285,99831,32119,9407,83626,642Segment assets (reference) Gross trading profit increased 16.7 billion yen (114.3%) year on year to 31.3 billion yen, 265,651296,02030,369because of profit growth in ship-related businesses owing to improvements in ship market conditions. Operating profit increased 15.8 billion yen (375.9%) year on year to 19.9 billion yen. Share of profits of associates and joint ventures likewise increased 4.8 billion yen (156.2%) year on year to 7.8 billion yen, because of profit growth in ship businesses owing to improvements in ship market conditions. Consequently, net profit increased 23.5 billion yen (735.2%) year on year to 26.6 billion yen. 11Marubeni Corporation Consolidated Financial Results Finance & Leasing Business RevenueGross trading profitOperating lossShare of profits of associates and joint venturesProfit (loss) attributable to owners of the parentFiscal year ended March 31,202120226,8643,903(4,264)20,7818,903(Millions of yen) Variance4,5743,2051,095(5,111)(10,677)11,4387,108(3,169)15,670(1,774)Segment assets (reference) Gross trading profit increased 3.2 billion yen (82.1%) year on year to 7.1 billion yen, and 341,219389,47048,251operating loss improved 1.1 billion yen (25.7%) year on year to 3.2 billion yen. Share of profits of associates and joint ventures decreased 5.1 billion yen (24.6%) year on year to 15.7 billion yen due to one-time loss on aircraft leasing business in the USA against the backdrop of Russian-Ukraine conflict, notwithstanding profit increases in the used car retail financing business in the USA, etc. In addition to the above, because of the non-recurrence of one-time profit posted in the previous year on the re-organization of the used car retail financing business in the USA, net profit (loss) deteriorated 10.7 billion yen ( – %) year on year to negative 1.8 billion yen. Construction, Industrial Machinery & Mobility RevenueGross trading profitOperating profitShare of profits of associates and joint venturesProfit attributable to owners of the parentFiscal year ended March 31,20212022290,28680,82616,0813,57114,709(Millions of yen) Variance110,10624,54111,4351,74410,654400,392105,36727,5165,31525,363Segment assets (reference) Gross trading profit increased 24.5 billion yen (30.4%) year on year to 105.4 billion yen, 353,782377,02023,238mainly as results of increase in number of sales of automobile related businesses and construction machinery businesses, etc. due to the easing of COVID-19. Operating profit increased 11.4 billion yen (71.1%) year on year to 27.5 billion yen. Share of profits of associates and joint ventures increased 1.7 billion yen (48.8%) year on year to 5.3 billion yen. In addition to the above, due to the one-time gain related to domestic solar power generation business, net profit increased 10.7 billion yen (72.4%) year on year to 25.4 billion yen. 12Marubeni Corporation Consolidated Financial Results Next Generation Business Development RevenueGross trading profitOperating lossShare of profits of associates and joint venturesLoss attributable to owners of the parentSegment assets (reference)Fiscal year ended March 31,20212022(Millions of yen) Variance2,7591,762(2,501)110(2,095)16,5983,0622,051(2,107)12(683)27,802303289394(98)1,41211,204 Gross trading profit increased 0.3 billion yen (16.4%) year on year to 2.1 billion yen, and operating loss improved 0.4 billion yen (15.8%) year on year to 2.1 billion yen. In addition to the above, as a result of valuation gains on fund investment, net loss improved 1.4 billion yen (67.4%) year on year to 0.7 billion yen. (Note 1) From the fiscal year ended March 31, 2022, the former operating segments of “Food” has been divided into “Food I” and “Food II” segments, parts of “Energy” and “Infrastructure Project” have been reorganized, parts of “Infrastructure Project” and “Aerospace & Ship” have been incorporated into “Metals & Mineral Resources”, a part of “Construction, Industrial Machinery & Mobility” has been incorporated into “Finance & Leasing Business”. In conjunction with these organizational changes, operating segment information for the year-earlier period has been reclassified. (Note 2) Inter-segment transactions are priced in accordance with the prevailing market prices. 13Marubeni Corporation Consolidated Financial Results (3) Cash Flows Cash and cash equivalents at the end of the fiscal year under review were 578.6 billion yen, a decrease of 167.2 billion yen from the end of the previous fiscal year. Net cash provided by operating activities was 311.9 billion yen due to operating revenue and dividend income, despite the increases in working capital and others. Net cash used in investing activities was 79.7 billion yen due mainly to the outflow of a capital expenditure in overseas businesses, despite the inflow from sales of investment As a result of the above-mentioned activities, free cash flow for the fiscal year under review (Operating activities) (Investing activities) securities. was an inflow of 232.3 billion yen. (Financing activities) Net cash used in financing activities amounted to 419.6 billion yen as results of repayment of corporate bonds and borrowings, an optional repayment of the perpetual subordinated loan(*), and dividend payment. As for the progress of share repurchases that had been resolved at the meeting of the Board of Directors held on February 3, 2022, aggregate repurchased amount totaled 19.2 billion yen as of March 31, 2022. (4) Financial Position Total assetsNet interest-bearing debtTotal equityNet D/E ratio (times)March 31,2021March 31,20226,935.71,687.91,907.50.888,255.61,860.02,338.30.80(Billions of yen) Variance1,319.8172.1430.8-0.08 points (Note 1) Figures are rounded to the nearest hundred million yen unless otherwise stated. (Note 2) Net interest-bearing debt is calculated as cash and cash equivalents and time deposits subtracted from the sum of corporate bonds and current and noncurrent borrowings. 14Marubeni Corporation Consolidated Financial Results Total assets at the end of the fiscal year under review increased 1,319.8 billion yen from the end of the previous fiscal year to 8,255.6 billion yen, mainly due to an increase in operating assets with the higher commodity prices, and Japanese yen depreciation. Net interest-bearing debt increased 172.1 billion yen from the end of the previous fiscal year to 1,860.0 billion yen, mainly due to the optional repayment of the perpetual subordinated loan(*) and dividend payment despite the increased free cash inflow. Total equity increased 430.8 billion yen from the end of the previous fiscal year to 2,338.3 billion yen, mainly as a result of increases in retained earnings by net profit accumulation and foreign currency translation adjustments due to Japanese yen depreciation, despite a decrease by the optional repayment of the perpetual subordinated loan(*). Consequently, Net DE ratio stood at 0.80 times. (Note *) The Company made an optional repayment of a total of 100.0 billion yen on August 16, 2021, for the perpetual subordinated loan (total amount: 250.0 billion yen) which the Company financed on August 16, 2016. To fund the optional repayment, the Company issued corporate hybrid bonds with a 75.0 billion yen total value (subordinated debt) on March 4, 2021, and withdrew 25.0 billion yen in total on August 16, 2021, from the hybrid loan facility (a subordinated commitment loan) with a total aggregate principal amount of 25.0 billion yen. Perpetual subordinated loans are classified as equity instruments under IFRS. Therefore, as a result of the above repayment, total equity decreased 100.0 billion yen. (5) Outlook for the Fiscal Year Ending March 31, 2023 Looking at the economic environment for the fiscal year ending March 31, 2023, consumption-driven economic growth is expected worldwide as further strict restrictions on economic activity may largely be avoided due to progress with COVID-19 vaccinations and treatments. That being said, stringent restrictions in China to limit the spread of COVID-19 may inhibit consumption. Relatively solid economic growth is expected in the U.S., underpinned by a favorable employment situation, but economic expansion is likely to lose momentum due to the dropping out of the positive effects of fiscal policy, and other factors. Due to the Russia/Ukraine situation, the economic outlook for Europe and other regions with close economic ties with the two countries remains uncertain. Inflation has also remained steep in many parts of the world as primary commodities prices remain at high levels, and there are concerns that this may weigh on consumption and investment. As for the financial environment, central banks of developed economies are expected to tighten monetary policy in response to high inflation, increasing the risk of capital flight from 15Marubeni Corporation Consolidated Financial Results follows: emerging economies with fragile economic structures. In this environment, the global economy is expected to continue to see solid growth, but at a slower pace. In response to the above, the forecasts for fiscal year ending March 31, 2023, are as Results for FYE 3/2022 (A) Forecasts for FYE 3/2023 (B) Variance (B-A) Variance in percentage (%) Profit attributable to owners of the parent (billions of yen) 424.3 400.0 (24.3) (5.7%) Earnings per share attributable to owners of the parent (basic) (yen) 242.89 231.72 (11.17) (4.6%) ICT Business & LogisticsLifestyleFood IFood IIAgri BusinessForest ProductsChemicalsMetals & Mineral ResourcesEnergyPowerInfrastructure ProjectAerospace & ShipFinance, Leasing & Real Estate BusinessConstruction, Industrial Machinery & MobilityNext Generation Business DevelopmentNext Generation Corporate DevelopmentOtherConsolidated(Billions of yen)Results for FYE 3/2022 (A)Forecasts forFYE 3/2023 (B)Variance(B－A)5.59.214.546.459.87.617.2190.737.7(27.7)7.326.67.022.5(1.5)0.90.6168.08.010.09.029.038.09.014.027.020.08.021.024.018.0(1.0)(2.0)0.02.50.9(5.5)(17.4)(21.8)1.4(3.2)(22.7)(10.7)47.70.7(5.6)17.0(4.5)0.5(2.9)(0.6)(24.3) 424.3400.0(Note) From FYE 3/2023, the former operating segments of “ICT & Real Estate Business” and “Finance & Leasing Business” have been renamed as “ICT Business & Logistics” and “Finance, Leasing & Real Estate Business” respectively. Also, parts of “ICT & Real Estate Business” have been incorporated into “Finance, Leasing & Real Estate Business”, parts of “Agri Business” into “Food II”, parts of “Power Business” into “Construction, Industrial Machinery & Mobility”, parts of “Construction, Industrial Machinery & Mobility” into “Lifestyle”. Additionally, “Next Generation Corporate Development” has been established and parts of “Next Generation Business Development” have 16Marubeni Corporation Consolidated Financial Results been incorporated into “Next Generation Corporate Development”. In conjunction with these organizational changes, operating segment information for FYE 3/2022 has been reclassified. Oil WTI: USD/Barrel Copper LME: USD/MT JPY TIBOR 3M: % USD LIBOR 3M: % Foreign exchange rate (full-year average): USD/JPY Results for FYE 3/2022 (A) Forecasts for FYE 3/2023 (B) Variance (B-A) 77 9,588 0.063 0.242 112.38 75 9,500 0.1 1.9 120 (2) (88) 0.037 1,658 7.62 As for the dividend for the period of Mid-Term Management Strategy GC2024 (FYE 3/2023-FYE 3/2025), the Company adopts the basic policy to maintain targeted dividend payout ratio of ‘25% or more’ of consolidated net profit reflecting the principle of linking dividends to the Company’s business results for each fiscal year and to announce the minimum dividend for each fiscal year at the beginning of the fiscal year, and in addition, to set the annual dividend announced at the beginning of FYE 3/2023 as the minimum through the GC2024. Based on the above mentioned policy and reflecting the net profit forecast of 400.0 billion yen, the annual dividend per share for the fiscal year ending March 31, 2023, is forecasted to be 60.00 yen per share, including the interim dividend forecast of 30.00 yen per share. This 60.00 yen per share is set as the minimum annual dividend. Also, this 60.00 yen is set as the minimum annual dividend through the GC2024 period, but in case the dividend forecast per share to be announced at the beginning of each FYE 3/2024 and FYE 3/2025 exceeds 60.00 yen, the announced amount will be set as the minimum annual dividend for the fiscal year. (Disclaimer Regarding Forward Looking Statements) The descriptions about future such as the above forecasts are based upon available information and assumptions, as of the time of the announcement date, about uncertain factors which would influence future businesses. Actual results might be influenced by various factors in the future. 17Marubeni Corporation Consolidated Financial Results (6) Update on the Marubeni Group’s Russia-related business given the crisis situation in Ukraine We will continue to monitor and strictly comply with all sanctions imposed on Russia by the Japanese government in cooperation with the international community. Furthermore, we will not engage in any new Russia-related business, and we will negotiate terminations of existing transactions wherever possible. As we continue to gather information and carefully examine the situation, including responses to individual projects, we will take appropriate measures consulting with related parties, including government entities, while keeping the safety of people worldwide our top priority. fiscal year under review. Risk exposure (*1) to Russia of the Marubeni Group was 12.3 billion yen at the end of the (*1) Among the assets held by Marubeni and its consolidated subsidiaries, the total amount of long-lived assets such as long-term credit, fixed assets, and investments. (Reference) At the end of the fiscal year under review, the book value of Russian Aircraft owned by Aircastle Limited (equity method affiliate in the aircraft leasing business in the USA) was 5.1 billion yen (*2) (Marubeni’s consolidated basis). (*2) The amount of the book value of Russian aircraft minus the deposits, etc. deposited from the lessees, was 2.9 billion yen (Marubeni’s consolidated basis). 2. Basic Rationale behind Choice of Accounting Principles The Marubeni Group has adopted IFRS to enhance its financial reporting’s international comparability and user-friendliness in capital markets. 18Marubeni CorporationConsolidated Financial Results3. Consolidated Financial Statements and Notes(1) Consolidated Statements of Financial PositionAssetsCurrent assets:Cash and cash equivalentsTime depositsInvestment securitiesTrade and loan receivablesOther current financial assetsInventoriesAssets held-for-saleOther current assets Total current assetsNon-current assets:Investments in associates and joint venturesOther investmentsTrade and loan receivablesOther non-current financial assetsProperty, plant and equipmentIntangible assetsDeferred tax assetsOther non-current assets Total non-current assets (Millions of yen)March 3120212022Variance745,85811361,057,245341,928988,00424,865223,5733,381,5921,730,736256,62194,80389,2051,001,853296,91022,17061,8593,554,157578,63670101,344,966793,0121,429,00620,098264,6844,430,4821,993,285235,21998,431181,149954,735287,91211,45462,9163,825,101(167,222)(43)4287,721451,084441,002(4,767)41,1111,048,890262,549(21,402)3,62891,944(47,118)(8,998)(10,716)1,057270,944Total assets6,935,7498,255,5831,319,83419Marubeni CorporationConsolidated Financial ResultsLiabilities and EquityCurrent liabilities:Bonds and borrowingsTrade and other payablesOther current financial liabilitiesIncome tax payableLiabilities directly associated with assets held-for-saleOther current liabilities Total current liabilitiesNon-current liabilities:Bond and borrowingsTrade and other payablesOther non-current financial liabilitiesAccrued pension and retirement benefitsDeferred tax liabilitiesOther non-current liabilities Total non-current liabilities Total liabilitiesEquity:Issued capitalCapital surplusOther equity instrumentsTreasury stockRetained earningsOther components of equity: Gains (losses) on financial assets measured at fair value through other comprehensive income Foreign currency translation adjustments Gains (losses) on cash flow hedges Equity attributable to owners of the parentNon-controlling interests Total equityTotal liabilities and equity (Millions of yen)March 3120212022Variance623,5011,187,719465,24414,9982,854398,0362,692,3521,810,3553,215264,75270,39495,49891,6762,335,8905,028,242742,3651,493,526874,44928,5557,558526,6163,673,0691,696,3021,410322,83266,139102,35255,1512,244,1865,917,255262,686143,667243,589(772)1,067,377262,947143,653145,657(19,738)1,379,701118,864305,807409,20513,5574,704128,580980,717(114,053)(1,805)58,080(4,255)6,854(36,525)(91,704)889,013261(14)(97,932)(18,966)312,32443,864123,789(69,407)1,814,79363,505330,292(63,837)2,242,18019,641206,5035,570427,38792,71496,1483,4341,907,5072,338,328430,8216,935,7498,255,5831,319,83420Marubeni CorporationConsolidated Financial Results(2) Consolidated Statements of Comprehensive IncomeRevenue:Sale of goodsCommissions on services and trading marginsTotal revenueCost of goods soldGross trading profitOther income (expenses) :Selling, general and administrative expensesProvision for doubtful accountsGains (losses) on property, plant and equipmentImpairment losses on property, plant and equipmentGains on sales of property, plant and equipmentOther – netTotal other income (expenses)Finance income (expenses):Interest incomeInterest expenseDividend incomeGains on investment securitiesTotal finance income (expenses)Share of profits of associates and joint venturesProfit for the year before taxProvision for income taxProfit for the yearProfit for the year attributable to:Owners of the parentNon-controlling interestsOther comprehensive income:Fiscal year ended March 31,20212022VarianceRatio (%)(Millions of yen)6,219,878112,5366,332,414(5,656,996)675,4188,384,760123,8318,508,591(7,613,260)895,3312,164,88211,2952,176,177(1,956,264)219,913(529,326)(4,539)(606,551)(4,290)(10,114)1,289(3,683)(546,373)(7,520)2,574(11,971)(627,758)10,444(22,947)16,2097,72711,433141,264281,742(50,761)230,98110,937(21,837)24,37911,18324,662236,555528,790(93,840)434,950223,2567,725424,32010,630(77,225)2492,5941,285(8,288)(81,385)4931,1108,1703,45613,22995,291247,048(43,079)203,969201,0642,905Items that will not be retransferred to profit and loss for the year　　Gains (losses) on financial assets measured at fair valuethrough other comprehensive incomeRemeasurements of defined benefit pension planChanges in other comprehensive income of associates andjoint ventures　　Items that may be retransferred to profit and loss for the year　　Foreign currency translation adjustments　　Gains (losses) on cash flow hedges　　Changes in other comprehensive income of associates andjoint venturesOther comprehensive income, net of taxTotal comprehensive income for the yearAttributable to:Owners of the parentNon-controlling interests20,44329,385(7,891)(28,334)3,136(26,249)(89.3)5,600(1,564)(7,164)79,4143,097175,838(7,883)(6,959)51,936130,980361,961213,572648,52296,424(10,980)58,89582,592286,561353,3908,571635,72012,802282,3304,23134.810.034.434.632.614.6(5.5)(25.6)99.7225.014.94.7(4.8)50.444.7115.767.587.784.988.390.137.6－－121.4－－63.179.279.949.421Marubeni CorporationConsolidated Financial Results(3) Consolidated Statements of Changes in Equity◆ The Fiscal Year Ended March 31, 2021 (April 1,2020 – March 31, 2021)(Millions of yen)Equity attributable to owners of the parentIssued capitalCapital surplusTreasury stockRetained earningsOther equityinstrumentsOther components of equityGains (losses) onfinancial assetsmeasured at fairvalue through othercomprehensiveincomeForeign currencytranslationadjustmentsBalance at beginning of year262,686143,189243,589(1,172)866,14022,71841,247Cumulative effects of newaccounting policy adoptedProfit for the yearOther comprehensive incomePurchases and sales of treasurystockDividends paymentEquity transactions with non-controlling interests and othersDistribution to owners of otherequity instrumentsTransfer to retained earningsTransfer to non-financial assetsand othersCumulative effects of newaccounting policy adoptedProfit for the yearPurchases and sales of treasurystockDividends paymentEquity transactions with non-controlling interests and othersDistribution to owners of otherequity instrumentsBalance at end of year262,686143,667243,589(772)1,067,37743,864123,789Equity attributable to owners of the parentOther components of equityGains (losses) oncash flow hedgesRemeasurements ofdefined benefitpension planOther componentsof equity totalEquity attributable toowners of the parentNon-controllinginterestsTotal equityBalance at beginning of year(62,922)－1,0431,515,47589,1251,604,600Other comprehensive income(7,244)28,502130,134130,13426,33482,5424003943933,690(5,188)(2,175)223,256(49,481)(111)(3,942)7,725846(2,175)223,256439(3,942)－759(2,175)230,981130,980439(3,942)－759(49,481)(6,229)(55,710)3281,2471,575Transfer to retained earnings(28,502)(33,690)Transfer to non-financial assetsand others759759Balance at end of year(69,407)－98,2461,814,79392,7141,907,50722Marubeni CorporationConsolidated Financial Results◆ The Fiscal Year Ended March 31, 2022 (April 1,2021 – March 31, 2022)(Millions of yen)Equity attributable to owners of the parentIssued capitalCapital surplusTreasury stockRetained earningsOther equityinstrumentsBalance at beginning of year262,686143,667243,589(772)1,067,37743,864123,789Other components of equityGains (losses) onfinancial assetsmeasured at fairvalue through othercomprehensiveincomeForeign currencytranslationadjustments(11,536)206,503Profit for the yearOther comprehensive incomeShare-based paymenttransactions261Purchases and sales of treasurystockDividends paymentEquity transactions with non-controlling interests and othersDistribution to owners of otherequity instrumentsRedemption of other equityinstrumentsTransfer to retained earningsTransfer to non-financial assetsand others317151,722(18,966)424,320(82,511)49(3,125)(2,068)(97,932)(26,409)31,177Balance at end of year262,947143,653145,657(19,738)1,379,70163,505330,292Equity attributable to owners of the parentOther components of equityGains (losses) oncash flow hedgesRemeasurements ofdefined benefitpension planOther componentsof equity totalEquity attributable toowners of the parentNon-controllinginterestsTotal equityBalance at beginning of year(69,407)－98,2461,814,79392,7141,907,507Profit for the year424,32010,630434,950Other comprehensive income11,6654,768211,400211,4002,172213,572Share-based paymenttransactionsPurchases and sales of treasurystockDividends paymentEquity transactions with non-controlling interests and othersDistribution to owners of otherequity instrumentsRedemption of other equityinstrumentsTransfer to retained earningsTransfer to non-financial assetsand others(82,511)(7,217)(89,728)1,771(2,151)(380)578(18,951)(3,125)(100,000)578(18,951)(3,125)(100,000)－(6,095)Balance at end of year－329,9602,242,18096,1482,338,328(4,768)26,409－(6,095)(6,095)(6,095)(63,837)23Marubeni CorporationConsolidated Financial Results(4) Consolidated Statements of Cash FlowsOperating activitiesProfit for the yearAdjustments to reconcile profit for the year to net cash provided by (used in)operating activities: (Millions of yen)Fiscal year ended March 31,20212022Variance230,981434,950203,969Depreciation and amortisationGains (losses) on property, plant and equipmentFinance expenses (income)Share of profits of associates and joint venturesIncome taxesChanges in notes and trade accounts receivableChanges in inventoriesChanges in notes and trade accounts payableOther-netInterest receivedInterest paidDividends receivedIncome taxes paid144,4178,825143,0394,946(11,433)(24,662)(141,264)(236,555)50,76118,721(116,365)132,0641,3188,990(24,305)128,533(34,174)93,840(190,963)(341,487)228,87761,2178,905(21,592)213,933(62,529)(1,378)(3,879)(13,229)(95,291)43,079(209,684)(225,122)96,81359,899(85)2,71385,400(28,355)227,0482023,361285(9,532)22,285(255)(30,102)10,98412,480Net cash provided by/used in operating activities397,069311,919(85,150)Investing activitiesNet decrease (increase) in time depositsProceeds from sale of property, plant and equipmentProceeds from sale of investment propertyCollection of loans receivableProceeds from sale of subsidiaries, net of cash and cash equivalents disposed ofProceeds from sale of investments in associates and joint ventures, and other investmentsPurchase of property, plant and equipmentPurchase of investment propertyLoans provided to customersAcquisition of subsidiaries, net of cash and cash equivalents acquiredPurchase of investments in associates and joint ventures, and other investments287,058－13,0628,83079,377(115)(11,528)(18,788)(70,090)5014,1062036,4239,11569,845(370)(41,630)(7,804)(57,610)(124,090)(101,805)Net cash provided by/used in investing activities(116,256)(79,660)36,596Financing activitiesNet increase (decrease) in short-term borrowingsProceeds from long-term bonds and borrowingsRepayments of long-term bonds and borrowingsDividends paid to owners of the parentNet cash outflows on purchases and sales of treasury stockCapital contribution from non-controlling interestsAcquisition of equity portion of subsidiary from non-controlling interestsDistribution to owners of other equity instrumentsRedemption of other equity instrumentsOther(9,464)398,599(398,238)(49,481)(10)667(380)(3,942)－(6,254)77,224287,649(569,406)(82,511)(19,212)1,055(4,271)(3,125)(100,000)(7,040)86,688(110,950)(171,168)(33,030)(19,202)388(3,891)817(100,000)(786)Net cash provided by/used in financing activities(68,503)(419,637)(351,134)Effect of exchange rate changes on cash and cash equivalentsNet increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of yearIncrease (decrease) in cash and cash equivalents resulting from transfer to assets held for saleCash and cash equivalents at end of year11,922224,232522,523(897)745,85819,343(168,035)745,858813578,6367,421(392,267)223,3351,710(167,222)24Marubeni Corporation Consolidated Financial Results (5) Notes Related to Going Concern Assumptions None (6) Changes in Accounting Principles Except for the changes disclosed below, significant accounting policies applied to the consolidated financial statements herein are identical to the accounting policies applied to consolidated financial statements for the previous fiscal year. Newly Adopted Standards and Interpretive Guidance The Marubeni Group moved to adopt earlier application of the following accounting standards effective from the second quarter of the current fiscal year. Standard and Interpretive Guidance Summary IAS 12 “Income Taxes” (amended in May 2021) Clarification of accounting treatment for deferred taxes relating to assets and liabilities arising from a single transaction The application of IAS 12 “Income Taxes” (amended in May 2021) clarifies the accounting treatment upon initial recognition for transactions that result in taxable temporary differences and deductible temporary differences of the same amount at the time of the transaction. Taxable temporary differences and deductible temporary differences are recognized as deferred tax liabilities and deferred tax assets, respectively, in the Company’s Consolidated Statements of Financial Position. With the application of this standard, the consolidated financial statements for the previous fiscal year have been retrospectively re-presented. As a result, in the Company’s Consolidated Statement of Financial Position at the end of the previous fiscal year, assets decreased 3,209 million yen due to changes in deferred tax assets and investments in associates and joint ventures, liabilities increased 1,053 million yen due to the recognition of deferred tax liabilities, and equity decreased 4,262 million yen due to a change in retained earnings. Also, in the Company’s Consolidated Statement of Comprehensive Income for the fiscal year ended March 2021, profit before tax decreased 21 million yen and profit for the year decreased 2,087 million yen due to changes in share of profits of associates and joint ventures and income taxes. 25Marubeni Corporation Consolidated Financial Results Basic earnings per share attributable to owners of the parent and diluted earnings per share attributable to owners of the parent decreased 1.20 yen on the previous fiscal year. Note, however, that because the cumulative effect of applying the above-mentioned standard was reflected, the balance of retained earnings at the beginning of the previous fiscal year has declined 2,175 million yen in the Consolidated Statement of Changes in Equity. Significant accounting policies relating to the abovementioned standard are as follows. IAS 12 “Income Taxes” Current tax Income tax payable (or recoverable) at the end of the reporting period shall be calculated as the amount expected to be paid to, or returned from, the tax authorities. The statutory tax rate or effective statutory tax rate at the end of the reporting period is used to calculate the amount of tax. Current tax related to items that are recognized in other comprehensive income shall be recognized under other comprehensive income. Current tax related to items that are recognized directly in equity shall be recognized directly under equity. The Company and its consolidated subsidiaries shall recognize the impact of tax positions in financial statements when it is most likely that, based on technical interpretation, the tax positions will be sustained upon examination by the tax authorities. Income tax receivable and income tax payable shall be offset if the Company has a legally enforceable right to set-off the recognized amounts and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Deferred tax The Company and its consolidated subsidiaries shall recognize deferred tax assets and liabilities based on the differences between the carrying amounts and the tax bases of assets and liabilities in the Consolidated Statement of Financial Position. The tax rate and tax laws that apply to the fiscal year in which the differences are settled shall be used to calculate Deferred tax liabilities shall be recognized for taxable temporary differences, except for the deferred tax assets and liabilities. following: ・Initial recognition of goodwill ・Initial recognition of assets or liabilities in a transaction which is not a business combination, and, at the time of the transaction, affects neither accounting profit nor taxable income and also does not result in taxable temporary differences and deductible temporary differences 26Marubeni Corporation Consolidated Financial Results of