三井倉庫ホールディングス（9302） – [Delayed]Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. May 10, 2022 Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Under Japanese GAAP) Company name: MITSUI-SOKO HOLDINGS Co., Ltd. Tokyo Stock Exchange Listing: 9302 Securities code: https://www.mitsui-soko.com/en/ URL: Hirobumi Koga, Representative Director, President & Group CEO Representative: Hirobumi Matsui, Executive Officer of Finance and Accounting Inquiries: Telephone: +81-3-6400-8006 Scheduled date of ordinary general meeting of shareholders: Scheduled date to commence dividend payments: Scheduled date to file annual securities report: Preparation of supplementary material on financial results: Holding of financial results meeting: June 23, 2022 June 3, 2022 June 23, 2022 Yes Yes (for securities analysts and institutional investors) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) (1) Consolidated operating results (Percentages indicate year-on-year changes.) Operating revenue Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen % Millions of yen % Millions of yen % Millions of yen % 301,022 253,559 18.7 5.2 25,939 17,661 46.9 49.6 25,553 17,240 48.2 63.7 14,503 11,549 25.6 80.6 Note: Comprehensive income For the fiscal year ended March 31, 2022: For the fiscal year ended March 31, 2021: ¥22,467 million ¥15,635 million (43.7%) (373.5%) Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to operating revenue Fiscal year ended March 31, 2022 March 31, 2021 Yen 583.98 465.01 Yen – – % 20.4 20.5 % 10.3 7.2 % 8.6 7.0 Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2022: For the fiscal year ended March 31, 2021: ¥271 million ¥148 million (2) Consolidated financial position As of March 31, 2022 March 31, 2021 Reference: Equity capital Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen 258,297 238,371 88,631 68,529 % 30.8 26.3 Yen 3,199.28 2,524.44 As of March 31, 2022: As of March 31, 2021: ¥79,458 million ¥62,697 million (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen Millions of yen Millions of yen Millions of yen 23,123 21,257 (7,049) 803 (17,218) (21,683) 22,822 22,718 2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Total dividends (Total) Payout ratio (Consoli-dated) Millions of yen Ratio of dividends to net assets (Consoli-dated) Yen Yen Yen Yen Yen % % – – 25.00 35.00 30.00 55.00 1,365 11.8 2.4 94.00 129.00 3,203 22.1 4.5 – 72.00 72.00 144.00 30.3 * The amount of year-end dividend per share for the fiscal year ended March 31, 2022 has been changed from ¥35 to ¥94. 3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 to March – – – Operating revenue Operating profit Ordinary profit (Percentages indicate year-on-year changes.) Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 147,000 5.0 11,000 (5.5) 10,800 (7.9) 6,300 (6.5) 253.66 290,000 (3.7) 21,000 (19.0) 20,300 (20.6) 11,800 (18.6) 475.11 4. Non-consolidated earnings forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 to March 31, 2023) Operating revenue Operating profit Ordinary profit Profit (Percentages indicate year-on-year changes.) Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 11,500 (3.1) 4,100 (18.4) 3,900 (18.7) 4,000 (11.6) 161.05 20,300 (3.0) 5,100 (25.7) 4,600 (24.6) 4,600 (18.5) 185.21 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) 31, 2023) Six months ending September 30, 2022 Fiscal year ending March 31, 2023 Six months ending September 30, 2022 Fiscal year ending March 31, 2023 (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the * Notes change in scope of consolidation): None Newly included: – – Excluded: (2) Changes in accounting policies, changes in accounting estimates, and restatement a. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes b. Changes in accounting policies due to other reasons: None c. Changes in accounting estimates: None d. Restatement: None * For details, please refer to “Changes in accounting policies” of “(5) Notes to consolidated financial statements” under “5. Consolidated financial statements and significant notes thereto” on page 20 of the attached materials. (3) Number of issued shares (common shares) a. Total number of issued shares at the end of the period (including treasury shares) b. Number of treasury shares at the end of the period As of March 31, 2022 As of March 31, 2021 As of March 31, 2022 As of March 31, 2021 c. Average number of shares outstanding during the period Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 24,883,002 shares 24,883,002 shares 46,684 shares 46,639 shares 24,836,324 shares 24,836,364 shares * Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation. * Proper use of earnings forecasts, and other special matters Figures for the forecasts, outlooks, and targets described in this report that are not historical facts are calculated based on the currently available information and uncertain factors that may have an effect on future performance. The actual results may differ from the forecasts. For matters concerning earnings forecasts, please refer to “b. Outlook for the next fiscal year” of “(1) Analysis of operating results” under “1. Overview of operating results and others” on page 2. MITSUI-SOKO HOLDINGS Co., Ltd. (9302) Attached Materials Index 1. Overview of operating results and others ……………………………………………………………………………………. 2 (1) Analysis of operating results ……………………………………………………………………………………………….. 2 (2) Analysis of financial position ………………………………………………………………………………………………. 3 (3) Basic policy on profit distribution and cash dividends for the fiscal year under review and the next fiscal year…………………………………………………………………………………………………………………… 4 2. Status of the corporate group …………………………………………………………………………………………………….. 5 3. Management policy………………………………………………………………………………………………………………….. 6 4. Basic concept regarding selection of accounting standards ……………………………………………………………. 7 5. Consolidated financial statements and significant notes thereto ……………………………………………………… 8 (1) Consolidated balance sheet …………………………………………………………………………………………………. 8 (2) Consolidated statement of income and consolidated statement of comprehensive income …………. 10 Consolidated statement of income ………………………………………………………………………………………. 10 Consolidated statement of comprehensive income ……………………………………………………………….. 12 (3) Consolidated statement of changes in equity ……………………………………………………………………….. 13 (4) Consolidated statement of cash flows …………………………………………………………………………………. 15 (5) Notes to consolidated financial statements …………………………………………………………………………… 17 Notes on premise of going concern …………………………………………………………………………………….. 17 Significant accounting policies for preparation of consolidated financial statements …………………. 17 Changes in accounting policies ………………………………………………………………………………………….. 20 Changes in presentation …………………………………………………………………………………………………….. 20 Consolidated balance sheet ……………………………………………………………………………………………….. 21 Consolidated statement of income ………………………………………………………………………………………. 22 Consolidated statement of comprehensive income ……………………………………………………………….. 24 Consolidated statement of changes in equity ……………………………………………………………………….. 24 Consolidated statement of cash flows …………………………………………………………………………………. 26 Securities ………………………………………………………………………………………………………………………… 26 Real estate for lease, etc. …………………………………………………………………………………………………… 27 Segment information, etc. …………………………………………………………………………………………………. 28 Per share information ……………………………………………………………………………………………………….. 31 Significant subsequent events…………………………………………………………………………………………….. 31 Introduction of restricted share-based remuneration plan ……………………………………………………… 31 6. Non-consolidated financial statements ……………………………………………………………………………………… 32 (1) Non-consolidated balance sheet …………………………………………………………………………………………. 32 (2) Non-consolidated statement of income ……………………………………………………………………………….. 34 (3) Non-consolidated statement of changes in equity …………………………………………………………………. 35 7. Others …………………………………………………………………………………………………………………………………… 37 Reference materials on the financial results for the fiscal year ended March 31, 2022 …………………….. 37 – 1 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) 1. Overview of operating results and others (1) Analysis of operating results a. Overview of the fiscal year under review (ⅰ) Overall summary During the fiscal year under review, the Japanese economy saw a gradual trend towards normalization of social and economic activity with the indices of industrial production showing signs of recovery, despite the protracted impact of COVID-19. Meanwhile, in the environment of the logistics industry, it remained difficult to see an end to the global disruption that has enveloped supply chains, despite a recovering trend in imports and exports from the previous fiscal year. In this economic environment, in the fiscal year under review, which was the final fiscal year of the “Medium-Term Management Plan 2017,” MITSUI-SOKO HOLDINGS Co., Ltd. (the “Company”) and its group companies (the “Group”) worked to achieve sustainable growth through the construction of overwhelming field capabilities and the construction of end-to-end integrated solution service, and responded to customers’ needs to review their supply chains. Through these efforts, the Group achieved significant growth in its earnings, despite the uncertain environment. The operating situation of the Group included an increase in container handling volume in the freight forwarding and port transportation businesses associated with the recovery in imports and exports. In addition, there was an increase in handling volume driven by a shift from sea transportation to air transportation against the backdrop of a shortage of marine containers, and an increase in the handling volume of air cargo, overseas storage, and transportation services involved in the procurement of components and so forth for maintaining customers’ production. As a result, consolidated operating revenue amounted to ¥301,022 million, up ¥47,462 million year on year, consolidated operating profit was ¥25,939 million, up ¥8,278 million, consolidated ordinary profit was ¥25,553 million, up ¥8,312 million, and profit attributable to owners of parent was ¥14,503 million, up ¥2,954 million, setting a new record-high profit for the second year in a row. (ii) Segment overview i) Logistics Business In addition to an increase in container handling volume in the freight forwarding and port transportation businesses associated with the recovery in imports and exports, there was also a shift from sea transportation to air transportation and a steep rise in airfares associated with supply chain disruption including a shortage of marine containers, an increase in handling volume for air cargo, overseas storage, and transportation services involved in the procurement of components for maintaining customers’ production. Moreover, in areas the Company is focusing on, the Company saw the start of new projects in the solution-type logistics services and the start of new operations in healthcare logistics. Furthermore, handling volumes in home appliance-related logistics also increased due to the demand related to the Tokyo Olympic and Paralympic Games. As a result, operating revenue amounted to ¥292,213 million, up ¥47,568 million year on year, and operating profit was ¥23,734 million, up ¥8,749 million. ii) Real Estate Business Operating revenue amounted to ¥9,574 million, down ¥46 million year on year, and operating profit was ¥5,798 million, down ¥34 million, both of which are nearly unchanged from the level as the previous fiscal year. b. Outlook for the next fiscal year Under the new five-year plan, Medium-term Management Plan 2022 (from the fiscal year ending March 31, 2023 to the fiscal year ending March 31, 2027), the Group will achieve further growth as it goes on the offensive with aggressive investment beginning from the plan’s initial fiscal year ending March 31, 2023. As for the business environment, extraordinary factors are likely to taper off toward the end of the fiscal year, amid a return to normal with respect to increased air cargo handling volume due to a shift away from sea cargo associated with global supply chain disruption along with surging freight costs – 2 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) associated with tight supply relative to demand. Meanwhile, we anticipate a positive contribution to profits in terms of full-year results from a warehouse dedicated to healthcare logistics newly established during the fiscal year under review and a logistics center for e-commerce and mass merchandisers of consumer electronics also newly established during the fiscal year under review. We also anticipate an increase in handling volume amid robust cargo movement against a backdrop of economic activity returning to normal. The Company has also incurred upfront costs associated with DX investment. As a result of these developments, for the next fiscal year we anticipate consolidated operating revenue of ¥290.0 billion (down 3.7% year on year), consolidated operating profit of ¥21.0 billion (down 19.0%), consolidated ordinary profit of ¥20.3 billion (down 20.6%), and profit attributable to owners of parent of ¥11.8 billion (down 18.6%). Primary factors of increase and decrease in consolidated operating profit results for the fiscal year under review and forecast for the next fiscal year (Billions of yen) Situation returning to normal with respect to more air cargo and surge in freight costs associated with supply chain disruption Consolidated operating profit for the fiscal year ended March 31, 2022 Tapering off of extraordinary factors Strategic investment projects Subtotal Full-year contribution of new logistics centers for e-commerce and mass merchandisers of consumer electronics Full-year contribution of new warehouse dedicated to healthcare logistics Subtotal Increased handling volume of routine transport services amid robust cargo movement Upfront systems-related costs incurred in association with DX investment Others Others Consolidated operating profit forecast for the fiscal year ending March 31, 2023 Subtotal 25.9 (5.9) (5.9) +0.3 +0.2 +0.5 +1.1 (0.7) +0.1 +0.5 21.0 (2) Analysis of financial position a. Overview of the fiscal year under review (i) Overall summary Total assets as of March 31, 2022 stood at ¥258,297 million, an increase of ¥19,925 million from the end of the previous fiscal year, due mainly to an increase in trade receivables following an increase in operating revenue and acquisition of property, plant and equipment. Net assets stood at ¥88,631 million, an increase of ¥20,101 million from the end of the previous fiscal year, due mainly to the recording of profit attributable to owners of parent. (ii) Status of cash flows Net cash provided by operating activities during the fiscal year ended March 31, 2022 amounted to ¥23,123 million, an increase of ¥1,865 million year on year due to an increase in profit before income taxes. Net cash used in investing activities amounted to ¥7,049 million, an increase of ¥7,853 million year on year, as a result of paying a part of the construction costs related to Kanto P&M Center Building B, a new warehouse dedicated to healthcare logistics, which is a field the Company is focusing on. Net cash used in financing activities amounted to ¥17,218 million, a decrease of ¥4,465 million year on year, due mainly to the repayments of borrowings and payment of dividends. As a result of the above, the balance of cash and cash equivalents as of March 31, 2022 was ¥22,822 million, an increase of ¥104 million from the end of the previous fiscal year. – 3 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) b. Outlook for the next fiscal year The Company forecasts net cash provided by operating activities of ¥26.0 billion largely based on profits in the next fiscal year, depreciation, and funds retained from amortization of goodwill. Cash and cash equivalents as of March 31, 2023 are expected to be at the same level as at the end of the fiscal year under review. c. Changes in cash flow-related indicators Equity ratio (%) Equity ratio based on market value (%) Interest-bearing debt to cash flow ratio Interest coverage ratio Notes: Equity ratio: Equity capital/Total assets Fiscal year ended March 31, 2019 Fiscal year ended March 31, 2020 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 18.8 17.9 7.7 14.1 20.8 14.5 6.0 17.5 26.3 22.6 5.1 21.2 30.8 24.1 4.1 27.1 Equity ratio based on market value: Market capitalization/Total assets Interest-bearing debt to cash flow ratio: Interest-bearing debt/Cash flow Interest coverage ratio: Cash flow/Interest payments 1. Each of the above indicators are calculated based on consolidated financial figures. 2. Market capitalization is calculated as follows: Final stock price at the end of the period x Total number of issued shares at the end of the period (excluding treasury shares). 3. The figure used for cash flow is “Net cash provided by (used in) operating activities” on the consolidated statement of cash flows. Interest-bearing debt includes all liabilities recorded on the consolidated balance sheet on which interest is paid. Furthermore, regarding the interest payments, the figure for “Interest paid” on the consolidated statement of cash flows is used. (3) Basic policy on profit distribution and cash dividends for the fiscal year under review and the next fiscal year Under the Medium-term Management Plan 2022 (from the fiscal year ending March 31, 2023 to the fiscal year ending March 31, 2027), the Company’s basic policy on distribution of funds is to achieve both proactive investment and enhanced shareholder returns. For dividends, we have decided on a policy of implementing flexible dividends linked to performance, with a consolidated dividend payout ratio of 30% as our standard. Pursuant to this policy, for the dividend for the fiscal year under review, we have decided to pay a year-end dividend of ¥94.00 per share for a consolidated dividend payout ratio of around 30% on the second-half earnings, combined with the interim dividend (¥35.00 per share) for an annual dividend of ¥129.00 per share. Meanwhile, the annual dividend for the next fiscal year has been provisionally set at ¥144.00 per share, consisting of an interim dividend of ¥72.00 per share and a year-end dividend of ¥72.00 per share based on the above dividend policy. – 4 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) 2. Status of the corporate group The Group consists of the Company, 80 subsidiaries, and 9 associates. The Group’s operations consist of the Logistics Business and the Real Estate Business. The Logistics Business organically and efficiently provides various logistics services to its customers, such that include warehousing and cargo handling, port-related work and transport, overseas logistics services, multimodal forwarding, airfreight forwarding, third-party logistics (3PL), supply chain management support, and land transportation. The Real Estate Business is centered on building leases. The Company’s consolidated financial statements encompass the results of 6 associates accounted for using equity method along with 79 consolidated subsidiaries, based on standards for determining materiality. The following depicts the corporate structure as it relates to the business segments. MITSUI-SOKO Group Name of business Domestic consolidated subsidiaries: 37, Foreign consolidated subsidiaries: 42, Associates accounted for using equity method: 6 Customers Provided services Company name Business company: MITSUI-SOKO Co., Ltd. (Other consolidated subsidiaries) Mitsui-Soko Kyushu Co., Ltd., Mitsui-Soko Business Partners Co., Ltd., IM Express Co., Ltd., Sanso K.K., Toko Maruraku Transportation Co., Ltd., Sanso Kouun Co., Ltd., Sanko Trucking Co., Ltd., Sanei K.K., Mitsunori Corporation, Mitsui Warehouse Terminal Service Co., Ltd., Sanyu Service Co., Ltd., Kobe Sunso Koun Co., Ltd., Sun Transport Co., Ltd., MK Services Co., Ltd., Seiyu Koun Co., Ltd., Hakata Sanso-Butsuryu Co., Ltd., Naha International Container Terminal, Inc., Mitsui-Soko NEA Co., Ltd., Mitsui-Soko (China) Investment Co., Ltd., Mitsui-Soko International Pte. Ltd., Mitex Logistics, (Shanghai) Co., Ltd., MSC Trading (Shanghai) Co., Ltd., Shanghai MITS Commerce & Trade Co., Ltd., Mitex Shenzhen Logistics Co., Ltd., Mitex International (Hong Kong) Ltd., Mitex Multimodal Express Ltd., Noble Business International Ltd., Mitex (Tianjin) Co., Ltd., Mitsui-Soko (Taiwan) Co., Ltd., Mitsui-Soko (Korea) Co., Ltd., Mitsui-Soko (Singapore) Pte. Ltd., Mitsui-Soko Southeast Asia Pte. Ltd., Mitsui-Soko Vietnam Co. Ltd., Mitsui-Soko (Thailand) Co., Ltd., Mitsui-Soko (Chiangmai) Co., Ltd., Mits Logistics (Thailand) Co., Ltd., Mits Transport (Thailand) Co., Ltd., MS North Star Logistics Co., Ltd., Mitsui-Soko (Malaysia) Sdn. Bhd., Mitsui-Soko Agencies (Malaysia) Sdn. Bhd., Integrated Mits Sdn. Bhd., PT Mitsui-Soko Indonesia, Mitsui-Soko (U.S.A.) Inc., Mitsui-Soko (Americas) Inc., Mitsui-Soko Mexico S.A. de C.V., Mitsui-Soko (Europe) s.r.o., PST CLC, a.s., PST Hungary Kft. (Associates accounted for using equity method) Shanghai Jinjiang Mitsui-Soko International Logistics Co., Ltd., Nantong Sinavico International Logistics Co., Ltd., AW Rostamani Logistics LLC. Business company: MITSUI-SOKO EXPRESS Co., Ltd. (Other consolidated subsidiaries) MSE CHINA (GUANGZHOU) CO., LTD., MSE EXPRESS AMERICA, INC., MSE EXPRESS MEXICO, S.A. DE C.V., MSE do Brasil Logistica Ltda., MSE EXPRESS (THAILAND) CO., LTD., N.V. MSE EUROPE S.A., MSE EUROPE TASIMACILIK, ORGANIZASYON, LOJISTIK LIMITED SIRKETI, MS EXPRESS SOUTH AFRICA (PTY) LTD. (Associates accounted for using equity method) MSE CHINA (BEIJING) CO., LTD., PT. PUNINAR MSE INDONESIA, MSE FORWARDERS INDIA PVT. LTD. Business company: MITSUI-SOKO LOGISTICS Co., Ltd. (Other consolidated subsidiaries) Hokkaimitsui-Soko Logistics Co., Ltd., MS Logitech Service Co., Ltd., Co-next Inc. Warehousing, port transportation, and overseas logistics services Logistics Business Airfreight forwarding, multimodal forwarding 3PL Supply chain management support Business company: MITSUI-SOKO Supply Chain Solutions, Inc. (Other consolidated subsidiaries) Logistics Operation Service Co., Ltd., MS Supply Chain Solutions (Thailand) Ltd., MS Supply Chain Solutions (Malaysia) Sdn. Bhd. Land transportation Business company: MITSUI-SOKO TRANSPORT Co., Ltd. (Other consolidated subsidiaries) Marukyo Logistics Co., Ltd. (Osaka), Marukyo Logistics Co., Ltd. (Ehime), AMT Co., Ltd., Marukyo Transportation Co., Ltd. (Kyushu), Marukyo Group Cooperative, Swallow Logistics Co., Ltd., Fujimatsu Unyu Souko Co., Ltd., Marukyo Shokusan Co., Ltd., Kiwa General Service Co., Ltd., Shanghai Marukyo Transportation Co., Ltd., Zhangjiagang Bonded Area Marukyo Transportation & Trade Co., Ltd. Others Mitsui-Soko Bizport Co., Ltd. Real estate leasing Holding company (the Company): MITSUI-SOKO HOLDINGS Co., Ltd. Real Estate Business (Unconsolidated subsidiary: 1) Fukumitsu-Shouji Co., Ltd. (Associates not accounted for using equity method: 3) American Terminal Service Co., Ltd. and others – 5 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) 3. Management policy Having recognized a need to review its raison d’être as a corporate group in order to achieve a further leap forward and sustainable growth under a rapidly changing business environment, the Group formulated a new “Group Philosophy (Purpose, Vision, Values)” in May 2022, as well as a five-year plan, the “Medium-term Management Plan 2022,” starting in the fiscal year ending March 31, 2023 and ending in the fiscal year ending March 31, 2027. Going forward, this Group Philosophy will be positioned as the highest management concept. By promoting the new medium-term management plan that we have formulated under this philosophy, we will work to increase corporate value over the medium to long term and build a sustainable society, thereby meeting the expectations of our stakeholders and society. Purpose (meaning of our existence) “Empower society, encourage progress” Vision (what we want to become in the medium- to long-term span) “The co-creative logistics solutions partner. For everyday, emergency, and always will be” Values (corporate values and action guidelines) PRIDE Responsibility and pride in empowering our society CHALLENGE Strive to create and execute sustainable proposals for both our customers and society GEMBA Our frontline: The base of potential, power, and progress RESPECT Embrace diverse ideas, co-create new value In our previous Medium-term Management Plan 2017, we positioned the first three years as a reversal period, focusing on strengthening our business profitability and rebuilding our financial base. In the last two years of the plan, we primarily worked on the three key areas for sustainable growth: Construction of Overwhelming Field Capabilities, Establishment of End-to-end Integrated Solution Services, and ESG Management. As a result, we successfully achieved all of our numerical targets, attained the reversal of our business, and laid the foundation for sustainable growth in the future. Under the new Medium-term Management Plan 2022, we aim to achieve further growth by deepening our efforts to date. As the first-call company that can be trusted by our customers, we will go on the offensive with aggressive investment, focusing on the three pillars of our growth strategy: Top-line Growth by Mobilizing the Group’s Collective Strength, Reinforcement of Operational Competitiveness, and Building Management Foundations to Support the Deepening. Growth Strategy a. Top-line Growth by Mobilizing the Group’s Collective Strength We will promote a deepening of our integrated solution services, which is our unique business model, expanding our sustainability-oriented business with our competitive abilities to make and execute proposals, and digging deeper into our inter-industry operations by making the most of the Group’s broad customer base and various logistics features. b. Reinforcement of Operational Competitiveness By deepening our efforts toward thorough standardization, we will realize our “overwhelming field capabilities” that combine the power of people with the power of technology. We also aim to secure a competitive advantage by improving the quality of our operations, and furthermore, to improve profitability by lowering the cost of operations. c. Building Management Foundation to Support the Deepening We will strengthen our management base in the following four aspects: DX Transformation of business models and reform of corporate culture – 6 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) Co-creation Creation of mechanisms to generate innovation and the strengthening of alliances with various platformers Business Assets Development of new office buildings and logistics facilities, enhancement of the asset value of existing facilities, and the improvement of the work environment ESG Reinforcement of efforts to realize a decarbonized society, an expansion of investment in human capital, and the enhancement of governance Financial Strategy In the Medium-term Management Plan 2017, we restrained investment and reduced interest-bearing debt in order to rebuild our financial base. In the Medium-term Management Plan 2022, we aim to achieve both proactive investment and enhanced shareholder returns based on the financial base and profitability established in the previous medium-term management plan. Make an investment of ¥130 billion in total. – ¥100 billion for strategic investment in growth areas, such as DX investment, investment in new equipment (physical distribution/real estate), and M&A – ¥30 billion for ordinary investment (investment in maintenance/renewal of existing facilities) Strengthen shareholder returns based on a payout ratio of 30%. Procure and operate based on the optimal debt-to-equity ratio of 1.0. Set a target of return of equity (ROE) of over 12%, aiming to maintain a high level of capital efficiency. Numerical Targets (End of March 31, 2027) Operating revenue Operating profit Operating cash flow (Billions of yen) 350 23 30 4. Basic concept regarding selection of accounting standards The Group has adopted Japanese GAAP for the time being, but has been considering the possibility of adopting the International Financial Reporting Standards (IFRS) in view of the trend toward adopting the IFRS in Japan. – 7 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) 5. Consolidated financial statements and significant notes thereto (1) Consolidated balance sheet As of March 31, 2021 As of March 31, 2022 (Millions of yen)Assets Current assets Cash and deposits Trade notes and accounts receivable Trade notes and accounts receivable, and contract assets Inventories Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Land Construction in progress Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Retirement benefit asset Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 23,225 32,402 – 843 6,991 (55) 63,407 205,346 (135,136) 70,209 25,110 (20,848) 4,262 55,920 3,158 13,384 (10,677) 2,707 136,258 2,549 5,740 8,289 10,009 325 4,107 4,847 11,672 (547) 30,415 174,964 238,371 *6 *2 *6 *2 *6 *1 *1 23,109 – 41,155 2,045 11,112 (67) 77,354 214,242 (140,632) 73,609 27,524 (21,803) 5,721 56,496 43 15,276 (11,653) 3,623 139,493 1,917 6,783 8,700 9,883 331 4,818 5,329 12,988 (603) 32,748 180,942 258,297 *6 *2 *6 *2 *6 *1 *1 – 8 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) As of March 31, 2021 As of March 31, 2022 (Millions of yen) *2 *2 *2 Liabilities Current liabilities Trade notes and accounts payable Short-term borrowings Current portion of long-term borrowings Lease liabilities Income taxes payable Provision for bonuses Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Lease liabilities Deferred tax liabilities Retirement benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets *2 *2 *2 18,367 6,440 12,168 779 5,427 3,467 17,063 63,715 25,000 64,270 1,033 4,434 6,630 4,757 106,126 169,842 11,100 5,548 39,898 (103) 56,444 3,852 0 1,036 1,364 6,253 5,831 68,529 238,371 22,604 2,049 9,630 1,223 4,631 3,863 21,440 65,441 25,000 57,317 4,174 4,780 6,562 6,388 104,224 169,666 11,100 5,548 52,752 (103) 69,298 3,568 2 4,665 1,924 10,159 9,172 88,631 258,297 – 9 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) (2) Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (Millions of yen)Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Operating revenue Warehousing fee income Stevedoring income Port terminal fee income Transportation income Real estate income Other Total operating revenue Operating costs Direct operation expenses Rent expenses Depreciation Taxes and dues Salaries and allowances Provision for bonuses Retirement benefit expenses Other Total operating costs Operating gross profit Selling, general and administrative expenses Remuneration, salaries and allowances Provision for bonuses Retirement benefit expenses Depreciation Amortization of goodwill Taxes and dues Provision of allowance for doubtful accounts Other Total selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Share of profit of entities accounted for using equity method Subsidy income Other Total non-operating income Non-operating expenses Interest expenses Commission expenses Foreign exchange losses Loss on retirement of non-current assets Other Total non-operating expenses Ordinary profit – 10 – 35,500 31,090 15,720 123,359 8,914 38,974 253,559 120,853 17,797 7,548 2,207 35,071 1,685 805 32,124 218,094 35,465 5,675 2,026 848 1,234 1,053 725 – 6,239 17,804 17,661 126 435 148 214 674 1,599 969 78 227 136 607 2,019 17,240 35,037 31,603 17,019 164,367 8,808 44,185 301,022 155,892 19,794 7,449 2,274 34,142 2,019 804 34,365 256,743 44,278 5,655 2,135 833 1,271 720 660 7 7,055 18,338 25,939 127 305 271 – 611 1,316 859 56 263 135 388 1,702 25,553 MITSUI-SOKO HOLDINGS Co., Ltd. (9302) (Millions of yen)Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Extraordinary income Gain on sale of investment securities Gain on sale of investments in capital of subsidiaries and associates Other Total extraordinary income Extraordinary losses Impairment losses Loss on sale of shares of subsidiaries and associates Total extraordinary losses *1 Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 5,487 3 191 5,683 3,407 475 3,883 19,040 7,967 (1,437) 6,530 12,510 961 11,549 – – – – – – – 25,553 7,921 (484) 7,437 18,115 3,611 14,503 – 11 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) Consolidated statement of comprehensive income (Millions of yen)Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Profit Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 12,510 (1,352) 0 2,875 1,183 418 3,125 15,635 14,221 1,413 18,115 (284) 2 3,454 564 614 4,351 22,467 18,410 4,057 * * – 12 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) (3) Consolidated statement of changes in equity Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen)Total shareholders’ equity Balance at beginning of period 11,100 5,536 29,591 (103) 46,125 Restated balance 11,100 5,536 29,591 (103) 46,125 Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Total changes during period Balance at end of period – 11,100 Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (1,352) (1,352) 3,852 – (1,241) 11,549 10,307 39,898 (0) (0) (103) 694 694 (1,241) 11,549 – (0) 11 10,319 56,444 – (1,241) 11,549 (0) 11 3,367 13,686 2,846 2,846 1,036 1,179 1,179 1,364 2,672 2,672 6,253 5,831 68,529 11 11 5,548 0 0 0 0 0 – 13 – Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Balance at beginning of period 5,205 (1,809) 184 3,580 5,136 54,842 Restated balance 5,205 (1,809) 184 3,580 5,136 54,842 MITSUI-SOKO HOLDINGS Co., Ltd. (9302) Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Millions of yen)Total shareholder’ equity Balance at beginning of period 11,100 5,548 (103) Restated balance 11,100 5,548 39,863 (103) Total changes during period Balance at end of period – 11,100 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Balance at beginning of period 3,852 1,036 1,364 6,253 5,831 68,529 Restated balance 3,852 1,036 1,364 6,253 5,831 68,493 Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 0 0 2 2 2 (284) (284) 3,568 – 14 – 5,548 – – 39,898 (35) (1,614) 14,503 12,889 52,752 (0) (0) (103) 56,444 (35) 56,408 (1,614) 14,503 (0) – 12,889 69,298 (35) (1,614) 14,503 (0) – 3,628 3,628 4,665 560 560 1,924 3,906 3,341 7,247 3,906 10,159 3,341 9,172 20,137 88,631 MITSUI-SOKO HOLDINGS Co., Ltd. (9302) (4) Consolidated statement of cash flows (Millions of yen)Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 19,040 8,783 1,053 3,407 (251) 454 102 (562) 969 (148) 24 136 (5,487) 471 (4,500) 2,568 777 26,840 679 (1,002) (5,260) 21,257 (6,791) 176 (1,206) 3 (123) 7,388 1,094 117 (12) 157 (186) 184 803 25,553 8,721 720 – 43 363 (90) (433) 859 (271) (20) 135 (32) – (7,835) 3,743 2,742 34,198 621 (854) (10,842) 23,123 (5,411) 72 (1,850) 3 (122) 47 – – (26) 21 (1) 217 (7,049) Cash flows from operating activities Profit before income taxes Depreciation Amortization of goodwill Impairment losses Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Loss (gain) on sale of property, plant and equipment Loss on retirement of non-current assets Loss (gain) on sale of investment securities Loss (gain) on sale of shares of subsidiaries and associates Decrease (increase) in trade receivables Increase (decrease) in trade payables Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Proceeds from sale of intangible assets Purchase of investment securities Proceeds from sale of investment securities Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation Proceeds from sale of shares of subsidiaries and associates Loan advances Proceeds from collection of loans receivable Payments into time deposits Proceeds from withdrawal of time deposits Net cash provided by (used in) investing activities *2 – 15 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) (Millions of yen)Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Cash flows from financing activities Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Redemption of bonds Dividends paid Purchase of shares of subsidiaries not resulting in change in scope of consolidation Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 45,500 (41,316) 3,357 (16,509) (10,000) (1,241) (200) (1,271) (21,683) 960 1,338 21,380 22,718 116,023 (120,500) 3,501 (13,095) – (1,614) – (1,532) (17,218) 1,249 104 22,718 22,822 *1 *1 – 16 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) (5) Notes to consolidated financial statements Notes on premise of going concern Not applicable. 1. Disclosure of scope of consolidation (1) Number of consolidated subsidiaries: 79 Significant accounting policies for preparation of consolidated financial statements Names of major consolidated subsidiaries are provided in “2. Status of the corporate group.” The following company was excluded from the scope of consolidation for the fiscal year ended March 31, 2022, due to its liquidation. Mitsui-Soko (Philippines), Inc. (2) Names, etc. of major non-consolidated subsidiaries Fukumitsu-Shouji Co., Ltd. The non-consolidated subsidiary is excluded from the scope of consolidation, because it is small in its business scale, and any amount in terms of its total assets, operating revenue and profit or loss (amount corresponding to the Company’s ownership interest) as well as retained earnings (amount corresponding to the Company’s ownership interest) and others does not significantly affect the consolidated financial statements. 2. Disclosure about application of equity method (1) Number of associates accounted for using equity method: 6 Names of major associates accounted for using equity method are provided in “2. Status of the corporate group.” (2) Non-consolidated subsidiary not accounted for using the equity method (Fukumitsu-Shouji Co., Ltd.) and associates not accounted for using the equity method (American Terminal Service Co., Ltd. and two other companies) are excluded from the scope of application of the equity method, because such exclusion has only an immaterial effect on the consolidated financial statements in terms of each company’s profit or loss (amount corresponding to the Company’s ownership interest) and retained earnings (amount corresponding to the Company’s ownership interest), and they have no significance as a whole. 3. Disclosure about fiscal years, etc. of consolidated subsidiaries Of consolidated subsidiaries, 30 companies have fiscal year-ends different from the consolidated balance sheet date, or accounting periods different from the consolidated accounting period. Therefore, they are consolidated based on the financial statements provisionally prepared in accordance with regular year-end closing procedures as of the consolidated balance sheet date. Other consolidated subsidiaries’ fiscal year-end is the same as the consolidated balance sheet date. 4. Disclosure of accounting policies (1) Valuation basis and methods for significant assets a. Securities Other securities 1) Securities other than shares with no market value, etc. Fair value method based on market price, etc. on the consolidated balance sheet date (with the entire amount of valuation differences posted directly to net assets, and the cost of sales calculated using the moving average method) 2) Shares with no market value, etc. Stated at cost determined by the moving average method – 17 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) b. Derivatives Stated at fair value c. Inventories Stated at cost determined by the moving average method (method of lowering book value based on a decline in profitability) (2) Accounting methods for depreciation of significant depreciable assets a. Property, plant and equipment (excluding leased assets) The declining balance method is applied, while the straight-line method is applied for buildings acquired on or after April 1, 1998 (excluding facilities attached to buildings), facilities attached to buildings and structures acquired on or after April 1, 2016, and consolidated foreign subsidiaries. Major useful lives are as follows: Buildings and structures Machinery and vehicles b. Intangible assets (excluding leased assets) 3-50 years 2-15 years The straight-line method is applied, while software for internal use is amortized using the straight-line method over its useful life as internally determined (five years). c. Leased assets Leased assets related to finance lease transactions that transfer ownership The same depreciation method applied to non-current assets owned by the Company is applied. Leased assets related to finance lease transactions that do not transfer ownership The straight-line method is applied assuming the lease period as the useful life without residual value. (3) Accounting methods for significant deferred assets Bond issuance costs Bond issuance costs are fully charged to expenses when incurred. (4) Accounting policy for significant provisions a. Allowance for doubtful accounts To prepare for credit losses on receivables, an estimated uncollectable amount is provided at the amount estimated by either using the historical rate of credit loss for general receivables, or based on individual consideration of collectability for specific receivables such as highly doubtful receivables. b. Provision for bonuses To provide for payment of bonuses to employees, of the estimated amount of bonuses to be paid in the future, the amount estimated to cover the bonus payment for services rendered by employees with respect to the relevant fiscal year is provided. (5) Accounting methods for retirement benefits To prepare for payment of retirement benefits payable to employees, projected retirement benefit obligations and plan assets at the end of the relevant fiscal year are recorded based on deemed either accrued or realized amount at the end of the fiscal year. a. Method of attributing expected retirement benefits to periods In the calculation of retirement benefit obligations, expected retirement benefits are attributed to the period up to the end of the fiscal year on a benefit formula basis. – 18 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) b. Method of amortizing actuarial gains and losses and past service cost Actuarial gains and losses are amortized using the straight-line method over the average remaining service years (six to 15 years) of employees when incurred in each fiscal year, from the fiscal year following the accrual of each gain or loss. Past service cost is amortized using the straight-line method over the average remaining service years (11 years) of employees when incurred. (6) Accounting policy for significant revenues and expenses The Group recognizes revenue based on the following five step approach. Step 1: Step 2: Step 3: Step 4: Step 5: Identify the contract(s) with a customer Identify the performance obligations in the contract Determine the transaction price Allocate the transaction price to separate performance obligations in the contract Recognize revenue when (or as) the entity satisfies a performance obligation The Group provides comprehensive logistics services, such as warehousing, cargo handling, port-related work, inland transport and international transport, and real estate leasing services centered on building leases. In determining a contract with a customer, the Group recognizes that existence of characteristics that contracts should have and economic substance are reflected in the contract, and at the same time, identifies goods or services promised to be transferred to the customer under the contract as well as performance obligations to be accounted for individually. In calculating a transaction price, the Group measures it at an amount of consideration to which the entity expects to be entitled in exchange for the transfer of promised goods or services to the customer. Contracts with customers do not include any significant financial component. For contracts of which the transaction price needs to be allocated to each performance obligation, revenue is recognized by allocating goods or services constituting each performance obligation based on the proportion of the standalone selling price. As for revenue recognition, control over the underlying goods or services is recognized at a point in time or over a certain period of time, only if performance obligations meet the qualifications. (7) Accounting policy for translation of significant foreign currency assets or liabilities into Japanese yen Monetary receivables and payables in foreign currencies are translated into Japanese yen at the spot exchange rate prevailing as of the consolidated balance sheet date, and translation differences are accounted for as profit or loss. Assets and liabilities of foreign subsidiaries, etc. are translated into Japanese yen at the spot exchange rate prevailing as of the consolidated balance sheet date, and their revenues and expenses are translated into Japanese yen at the average exchange rate during the period. Translation differences are included in foreign currency translation adjustment and non-controlling interests under net assets. (8) Accounting method and period for amortization of goodwill Goodwill is amortized in equal amounts over the period in which its effects will be realized within 20 years. (9) Scope of cash and cash equivalents in consolidated statement of cash flows Cash and cash equivalents in the consolidated statement of cash flows are comprised of cash in hand, demand deposits and short-term investments with maturities of three months or less from the acquisition date that are highly liquid, readily convertible into cash and are exposed to only an insignificant risk of fluctuations in value. – 19 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) (10) Accounting methods for hedging In principle, the deferral hedge accounting is applied. Exceptional accounting method is applied to interest rate swaps that meet the requirements. (11) Methods for recognizing impairment of securities For listed shares, impairment is recognized if the share price at the end of the fiscal year has decreased by 30% or more against the historical cost. For unlisted shares, impairment is recognized if the net asset value of the issuer has decreased by 50% or more against the historical cost and the recovery cannot be expected. Changes in accounting policies Application of Accounting Standard for Revenue Recognition, etc. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it has recognized revenue at the time the control of promised goods or services is transferred to the customer at the amount expected to be received upon exchange of said goods or services. The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods prior to the beginning of the fiscal year under review was added to or deducted from the opening balance of retained earnings of the fiscal year under review, and thus the new accounting policy was applied from such opening balance; provided, however, that the new accounting policy was not retrospectively applied to contracts for which nearly all the revenue amounts had been recognized according to the previous treatment in periods prior to the beginning of the fiscal year under review, by applying the method provided for in paragraph 86 of the Accounting Standard for Revenue Recognition. Furthermore, by applying the method set forth in item (1) of the supplementary provisions of paragraph 86 of the Accounting Standard for Revenue Recognition, modifications to contracts carried out prior to the beginning of the fiscal year under review were accounted for based on the contractual terms after all contract modifications were reflected. Consequently, this cumulative effect was added to or deducted from the opening balance of retained earnings of the fiscal year under review. Notes and operation accounts receivable trade, which was presented under current assets on the consolidated balance sheet for the previous fiscal year, has been included in notes and operation accounts receivable trade, and contract assets from the fiscal year under review. Pursuant to the transitional treatment provided for in paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for the previous fiscal year have not been restated in accordance with the new approach to presentation. The effect of this change on the consolidated financial statements for the fiscal year ended March 31, 2022 was immaterial. In addition, because the cumulative effect was reflected in net assets as of the beginning of the fiscal year under review, the opening balance of retained earnings in the consolidated statement of changes in equity decreased by ¥35 million. Application of Accounting Standard for Fair Value Measurement, etc. The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year under review, and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph 19 of the Accounting Standard For Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This does not affect the consolidated financial statements for the fiscal year ended March 31, 2022. Changes in presentation Consolidated balance sheet “Lease liabilities” included in “other” under “current liabilities” and “non-current liabilities” in the previous fiscal year have been separately presented from the current fiscal year due to increased – 20 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) financial materiality. The consolidated financial statements for the previous fiscal year have been restated to reflect this change in presentation. As a result, the amount of ¥17,843 million presented in “other” under “current liabilities” on the consolidated balance sheet of the previous fiscal year has been restated with ¥779 million allocated to “lease liabilities” and ¥17,063 million allocated to “other.” In addition, the amount of ¥5,790 million presented in “other” under “non-current liabilities” has been restated with ¥1,033 million allocated to “lease liabilities” and ¥4,757 million allocated to “other.” *1 The amount to unconsolidated subsidiaries and associates accounted for using equity method are as As of March 31, 2021 As of March 31, 2022 (Millions of yen) Consolidated balance sheet follows: Investment securities (shares) Other (investments in capital) Total *2 Pledged assets and secured liabilities Assets pledged as collateral are as follows: As of March 31, 2021 As of March 31, 2022 (Millions of yen) The maximum amount of revolving mortgage associated with such assets in the previous fiscal year and the current fiscal year amounts to ¥13,788 million and ¥3,000 million, respectively. As of March 31, 2021 As of March 31, 2022 (Millions of yen) Buildings and structures Land Total Secured liabilities are as follows: Short-term borrowings Current portion of long-term borrowings Long-term borrowings Total 393 4,147 4,540 3,955 5,074 9,029 700 416 3,666 4,782 *3 Contingent liabilities (Guarantee obligations) The Company guarantees bank borrowings of companies other than its consolidated subsidiaries as follows: (Millions of yen) As of March 31, 2021 As of March 31, 2022 Nagoya United Container Terminal Co., Ltd. 37 37 Total Total The Company and its consolidated subsidiaries have provided guarantees for housing loans from banks to their employees as follows: As of March 31, 2021 As of March 31, 2022 Guarantees for housing loans from banks to employees 29 Guarantees for housing loans from banks to employees *4 Trade notes receivable transferred by endorsement (Millions of yen) (Millions of yen) Trade notes receivable transferred by endorsement 30 As of March 31, 2021 As of March 31, 2022 603 4,656 5,260 2,581 0 2,582 – 176 2,504 2,681 – – 20 16 – 21 – MITSUI-SOKO HOLDINGS Co., Ltd. (9302) *5 The Company has entered into overdraft agreements with four banks (four banks as of the end of the previous fiscal year) and loan commitment agreements with three banks (three banks as of the end of the previous fiscal year) to efficiently procure working capital. The outstanding loan balances as of the end of the respective fiscal years based on such agreements are as follows: As of March 31, 2021 As of March 31, 2022 (Millions of yen) As of March 31, 2021 As of March 31, 2022 15,000 5,000 10,000 5,000 – 5,000 15,000 – 15,000 5,000 – 5,000 Maximum amount of overdraft Outstanding balance of overdraft Unused amount Total line of credit Outstanding balance of used line of credit Unused amount *6 Accumulated depreciation Cons