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Mitsui & Co., Ltd. (8031)

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Friday 27 March, 2020

Mitsui & Co., Ltd.

Notice Regarding Forecast of Consolidated Financial Results for the fiscal year ending March 31, 2020

Notice Regarding Forecast of Consolidated Financial Results for the fiscal year ending March 31, 2020

Mitsui & Co Ltd

 

This announcement is for our U.S.$5,000,000,000 Euro Medium Term Note Programme.

March 27, 2020

For Immediate Release
To Whom It May Concern

Company Name: Mitsui & Co., Ltd.
Representative: Tatsuo Yasunaga, President & CEO
(Code No.: 8031)
Head office: 1-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Mitsui & Co., Ltd. (“Mitsui”) announces the following possible impact on the consolidated financial results for the fiscal year ending March 31, 2020 (from April 1, 2019 to March 31, 2020), arising from a drop in commodity prices and the worldwide outbreak of the novel coronavirus . The impact is an estimate only and is currently under review.

  1. Forecast of Consolidated Financial Results for the fiscal year ending March 31, 2020
    Mitsui had announced a forecast on profit of JPY 450 billion (Profit attributable to owners of the parent) on February 4, 2020. There is a possibility that Mitsui will record some losses from impairment and others, ranging from a total of approximately JPY 50 billion to JPY 70 billion due to the following factors. However, negative impact on the core operation cash flow for this fiscal year is limited.

    (1) Impact due to the drop in commodity prices
    The coronavirus outbreak and the failure to agree on the decrease in production among OPEC plus has resulted in a sharp drop in crude oil price. Under this circumstance, we expect some impairment losses of fixed assets in the oil and gas business, mainly for the Eagle Ford shale oil and gas project in the U.S., and the Tempa Rossa oil project in Italy.

    (2) Others
    Due to the deteriorating business environment and the decline in the value of listed shares held by Mitsui resulting from the turmoil in the global stock market, there exists possibility that we will recognize impairment losses of fixed assets and losses on securities in certain business segments.

    Business environment surrounding our trading businesses has deteriorated due to the decline in demand from lower business activities of the global economy, disruption of logistics, impact on the procurement of raw materials, and partial suspension of manufacturing resulting from restrictions on the movement of people. However, we have not recognized any significant effects on our financial results for the current fiscal year.

  2. Dividend forecast
    Mitsui maintains the year-end dividend forecast for the fiscal year ending March 31, 2020, at 40 yen per share as previously announced on February 4, 2020, at the time of the 3rd quarter results.

In countries and regions affected by the spread of the coronavirus, we place top priority on the safety of our people and have taken measures such as promoting telecommuting to ensure business continuity. The business environment including the commodity price fluctuations and the consequences of the coronavirus are changing day by day, and we will notify you if we observe changes that have a significant impact on our financial performance.

For inquiries on this matter, please contact:
Mitsui & Co., Ltd.
IR Div. TEL: +81-3-3285-7657
Corporate Communications Div. TEL: +81-3-3285-7618

Notice:

This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements. This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.


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