Mitsui Engineering & Shipbuilding : 2nd Quarter Consolidated Financial Results for FY 2017

Mitsui Engineering & Shipbuilding Co., Ltd. and its Consolidated Subsidiaries‌‌‌‌

From April 1, 2017 to September 30, 2017

October 31, 2017

Code number:

7003

URL: http://www.mes.co.jp/

Shares Listed: Tokyo Stock Exchange

Representative: Takao Tanaka, President, Representative Director CEO

Kazunori Miyake, General Manager of Finance & Accounting Dept.

Inquiries:

Tel: +81 3 3544 3225

Scheduled date to file Quarterly securities report: November 7, 2017 Scheduled date to commence dividend payments: －

Supplementary explanatory materials prepared: Yes

Explanatory meeting: Yes (for analysts)

(Amounts less than one million yen are truncated)

1. Consolidated Financial Results for 2nd Quarter FY2017 (April 1, 2017 to September 30, 2017)

   (Millions of yen)

   From Apr. 1, to Sep. 30, 2016	From Apr. 1, to Sep. 30, 2017	Change (%)
   New Orders Received	172,219	247,500	43.7
   Net Sales	322,174	341,527	6.0
   Operating Income (Loss)	(2,330)	(9,059)	－
   Ordinary Income (Loss)	337	(4,792)	－
   Profit attributable to owners of parent	3,925	(5,890)	－
   Earnings per Share (Yen)	48.56	(72.88)	－

   Figures in parentheses represent negative.

   Note:

   The Company consolidated every 10 shares into 1 share with an effective date of October 1, 2017. Earnings per share has been calculated on the assumption that the said share consolidation was conducted on the beginning of previous fiscal year.

   (Millions of yen)

   As of Mar. 31, 2017	As of Sep. 30, 2017
   Total Assets	1,096,735	1,089,619
   Net Assets	367,608	354,509
   Shareholders' Equity to Total Assets	22.8%	22.0%

   Note:

   This consolidated financial results has been prepared in accordance with Japanese accounting standards and Japanese law.

2. Dividends (Yen)

   FY2016	FY2017	FY2017 (forecast)
   Annual dividends per share First quarter	－	－
   Second quarter	0.00	0.00
   Third quarter	－	－
   Year-end	3.00	30.00
   Total	3.00	30.00

   Note:

   Revision of the most recent dividends forecast: None

   The Company consolidated every 10 shares into 1 share with an effective date of October 1, 2017. The forecast of per share year-end dividends for the fiscal year ending March 31, 2018 takes into account the impact of the share consolidation.

3. Forecast of Financial Results for FY2017 (Millions of yen)

   Net Sales	Operating Income	Ordinary Income	Profit attributable to owners of parent	Earnings per Share (Yen)
   Year ending March 31, 2018	700,000	10,000	17,000	3,000	37.12

   Note:

   Revision of the most recent financial forecast: None

   The Company consolidated every 10 shares into 1 share with an effective date of October 1, 2017. The forecast of earnings per share for the fiscal year ending March 31, 2018 takes into account the impact of the share consolidation.

   Reference: Estimate is based on exchange rate of USD1.00 = JPY105.0

4. Notes

1. Changes in significant subsidiaries during the period

   (changes in specified subsidiaries resulting in the change in scope of consolidation): None

2. Application of specific accounting for preparing the quarterly consolidated financial statements: Yes

3. Changes in accounting policies, accounting estimates or restatements

4. ) Changes due to amendment of accounting standards: None

5. ) Changes due to other reasons: Yes

6. ) Changes in accounting estimates: Yes

7. ) Restatements: None

8. Number of shares outstanding (common stock)

9. FY2016 / FY2016 2Q	FY2017 2Q
   Number of shares outstanding at the end of period (including treasury stock)	shares 83,098,717	shares 83,098,717
   Number of treasury stock at the end of period	2,276,697	2,271,167
   Average number of shares during the period (cumulative quarterly consolidated period)	80,824,773	80,824,893

   The Company consolidated every 10 shares into 1 share with an effective date of October 1, 2017. The figures for "Number of shares outstanding at the end of period", "Number of treasury stock at the end of period" and "Average number of shares during the period" have been calculated on the assumption that the said share consolidation was conducted on the beginning of previous fiscal year.

   NOTICE REGARDING QUARTERLY REVIEW PROCEDURES FOR THE QUARTERLY FINANCIAL RESULTS

   This quarterly financial results statement is exempt from the quarterly review procedures based upon the Financial Instruments and Exchange Act. At the time of disclosure of this quarterly financial results statement, the quarterly review procedure based upon the Financial Instruments and Exchange Act has not been completed.

   FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMS

   The forecasts for financial results are based on information available at the time this report was released. These forecasts and other forward-looking statements are not guarantees of future performance. Actual operating results may differ from the above forecasts due to known and unknown risks, uncertainties, and other factors.

   Overview of Reportable Segment

   Reportable Segment is classified into 4 segments: Ship, Ocean Development, Machinery and Engineering. Main products and servicesof each Reportable Segment are as follows.

   Reportable Segment	Main Products and Services
   Ship	Commercial ships, naval ships, high speed passenger/vehicle ferries, offshore structures, underwater TV vehicles, steel structures
   Ocean Development	FPSOs (floating production storage offloading vessels)
   Machinery	Marine and stationary diesel engines, marine equipment, gas engines, steam turbines, blowers, process compressors, gas turbines, cogeneration system, regulating system, container cranes, industrial cranes, container terminal management systems, HWM manipulators, equipment of radar sensing for underground and construction, bridges, port structures, induction heaters
   Engineering	Chemical plants, overseas civil works, power generation plants, renewable energy business, waste treatment plants, water treatment plants, resources recycling plants, PCB disposal plants

   New Orders by Segment (Millions of yen)

   From Apr. 1, to Sep. 30, 2016	From Apr. 1, to Sep. 30, 2017	Difference
   Ship	30,453	19,854	(10,599) (34.8%)
   Ocean Development	19,359	84,607	65,247 337.0%
   Machinery	59,375	63,816	4,441 7.5%
   Engineering	43,232	61,524	18,292 42.3%
   Others	19,797	17,697	(2,100) (10.6%)
   Total	172,219	247,500	75,280 43.7%

   Net Sales by Segment (Millions of yen)

   From Apr. 1, to Sep. 30, 2016	From Apr. 1, to Sep. 30, 2017	Difference
   Ship	61,108	59,041	(2,067) (3.4%)
   Ocean Development	102,566	101,719	(846) (0.8%)
   Machinery	75,350	80,114	4,764 6.3%
   Engineering	65,136	83,534	18,397 28.2%
   Others	18,011	17,117	(894) (5.0%)
   Total	322,174	341,527	19,353 6.0%

   Operating Income (Loss) by Segment (Millions of yen)

   From Apr. 1, to Sep. 30, 2016	From Apr. 1, to Sep. 30, 2017	Difference
   Ship	(6,781)	(4,718)	2,063
   Ocean Development	2,342	2,644	302
   Machinery	4,256	5,793	1,537
   Engineering	(3,030)	(13,930)	(10,900)
   Others	882	1,150	268
   Total	(2,330)	(9,059)	(6,729)

   Figures in parentheses represent negative.