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Integrated Report 2019 For the year ended March 31, 2019 Integrated Report 2019 www.mitsubishicorp.com Invisible Connections Printed in Japan Since its founding years, Mitsubishi Corporation (MC) has contributed to industrial development through trading and investment activities founded on the Three Corporate Principles: Corporate Responsibility to Society, Integrity and Fairness, and Global Understanding Through Business. The True Value of Mitsubishi Corporation Realizing Unseen Potential Taking on on Business Business Management Manage- mentAcross Across a Wide Rangea Wide of Range Industries of Business Groups The MC MC Group Group has has the theability ability to access to access virtually virtually every everyindustry industry through its through more than its 130 more Business than 130Units Busiand - 10nessa global Units network and of a aroundglobal 1,400 network companies of around located 1,400 in companiesapproximately located 90 countries in approximately and regions worldwide, 90 countries in other andwords, regions the collective worldwide, capabilities in other to adopt words, a holistic the colview- lectiveacross numerous capabilities industries. to adopt a holistic view across numerous industries. MITSUBISHI CORPORATION 01 Operations in approximately Management Professionals Across Virtually Every Industry Worldwide countries MC has continued to adapt its business model to respond to the needs of society. The driving force behind our success is 90our highly ethical management professionals who have the foresight to identify New Seeds of Growth and the execution skills to achieve that growth. MC will continue to accelerate the development of its management professionals by actively providing opportunities for personal growth, aiming to further strengthen the link between professional growth and company development. 02 MITSUBISHI CORPORATION Diverse Management Professionals Realizing Human Potential In accordance with its corporate philosophy, the Three Corporate Principles, MC aims to leverage its collective capabilities, foresight and execution skills in order to simultaneously generate economic, societal and environmental value. MITSUBISHI CORPORATION 03 Table of Contents SECTION MC’s Vision 01 08 Corporate Philosophy and Vision 10 Path of Value Creation 12 Growth Mechanism Section 01 introduces 14 Overview of Midterm Corporate Strategy the value creation story 18 Message from the President and CEO of MC. 24 Message from the CFO 26 Midterm Corporate Strategy 2021 Highlights SECTION MC’s Value Creation 02 30 The Sustainable Growth that MC Seeks 32 The Strengths of MC: Collective Capabilities 34 The Strengths of MC: Foresight and Execution Skills Section 02 introduces the strengths and 38 Framework Supporting Value Creation mechanisms that serve as 38 Risk Management the source of value 40 Compliance creation. 42 Sustainability Promotion Framework SECTION Corporate Governance 03 48 Enhancing Governance to Contribute to Sustainable Growth 52 Strengthening of Corporate Governance 60 Overview of New Remuneration Package Section 03 introduces corporate governance, which acts as a foundation for value creation. 04 MITSUBISHI CORPORATION SECTION Reference Information 04 66 Members of the Board and Audit & 84 Food Industry Group Supervisory Board Members 86 Consumer Industry Group 68 Executive Officers 88 Power Solution Group 69 Organizational Structure 90 Urban Development Group 70 Business Groups at a Glance 92 Global Network (Countries and Regions) 72 Description of Business Activities: Balance of Risk Money Outstanding Business Groups 94 in 12 Countries 72 Natural Gas Group 96 Financial Highlights 74 Industrial Materials Group 98 ESG Data 76 Petroleum & Chemicals Group 100 Corporate Information 78 Mineral Resources Group 101 Shareholder Information 80 Industrial Infrastructure Group 82 Automotive & Mobility Group Publication of Mitsubishi Corporation Integrated Report 2019 In our policy entitled Midterm Corporate Strategy starting from the fiscal year ending March 31, have worked closely with each of our internal 2018—Evolving Our Business Model from 2020 and called it Midterm Corporate Strategy departments to provide a summary of our Investing to Managing, which we formulated in 2021—Achieving Growth Through Business holistic perspective on the MC Group as a whole. May 2016, we at Mitsubishi Corporation (MC) Management Model. In this integrated report, we In the process, we have referred to the reporting described a policy of simultaneously generating present our specific initiatives aimed at framework propounded by the International triple-value growth through our businesses: maximizing corporate value by focusing on the Integrated Reporting Council (IIRC) and other economic value, societal value and MC Group’s strengths and transcending guidelines. We hereby affirm the legitimacy of environmental value. Business Group boundaries to steadily develop both the preparation process and the content of MC achieved all of the quantitative targets new pillars of future growth. disclosure with respect to this integrated report. we had announced in Midterm Corporate Looking ahead, we will continue to do our September 2019 Strategy 2018—Evolving Our Business Model utmost to ensure that our integrated report from Investing to Managing by the fiscal year serves as an effective communication tool that ended March 31, 2018. The systems introduced positively contributes to constructive stakeholder during this period are already making steady dialogue. To do so, we will strive to improve the progress and delivering results. To accelerate clarity of our reporting based on the valued Kazuyuki Masu our initiatives for further growth, we formulated feedback we receive from our stakeholders. Member of the Board, Executive Vice President, a new management direction for the three years In the course of preparing this report, we Corporate Functional Officer, Chief Financial Officer Forward-Looking Statements This integrated report contains forward-looking statements about Mitsubishi Corporation’s future plans, strategies, beliefs and performance that are not historical facts. They are based on current expectations, estimates, forecasts and projections about the industries in which Mitsubishi Corporation operates and beliefs and assumptions made by management. As the expectations, estimates, forecasts and projections are subject to a number of risks, uncertainties and assumptions, they may cause actual results to differ materially from those projected. Mitsubishi Corporation, therefore, wishes to caution readers not to place undue reliance on forward-looking statements. Furthermore, Mitsubishi Corporation undertakes no obligation to update any forward-looking statements as a result of new information, future events or other developments. Risks, uncertainties and assumptions mentioned above include, but are not limited to, commodity prices; exchange rates and economic conditions; the outcome of pending and future litigation; and the continued availability of financing, financial instruments and financial resources. MITSUBISHI CORPORATION 05 SECTION01 MC’s Vision Contents 08 Corporate Philosophy and Vision 10 Path of Value Creation 12 Growth Mechanism 14 Overview of Midterm Corporate Strategy 18 Message from the President and CEO 24 Message from the CFO 26 Midterm Corporate Strategy 2021 Highlights 06 MITSUBISHI CORPORATION Realizing Collective Potential MITSUBISHI CORPORATION 07 Corporate Philosophy and Vision Corporate Philosophy Since its founding years, The Three Corporate Principles Mitsubishi Corporation has embraced the spirit of the Three Corporate Principles as its corporate philosophy. Corporate Responsibility to Society “Shoki Hoko” The Three Corporate Principles were formulated in 1934, Strive to enrich society, both materially and spiritually, while contributing as the action guidelines of Mitsubishi Trading Company towards the preservation of the global environment. (Mitsubishi Shoji Kaisha), based on the teachings of Integrity and Fairness Koyata Iwasaki, the fourth president of Mitsubishi. We “Shoji Komei” Maintain principles of transparency and openness, conducting business look to the Three Corporate Principles as the source of with integrity and fairness. inspiration for our business activities and also for our Global Understanding Through Business initiatives to fulfill our responsibilities toward the global “Ritsugyo Boeki” environment and society. Expand business, based on an all-encompassing global perspective. (The modern day interpretation of the Three Corporate Principles, as agreed on at the Mitsubishi Kinyokai meeting of the companies that constitute the so-called Mitsubishi group in January 2001.) MC Group Corporate Vision Mission Consolidated Growth Strategy By pooling its collective capabilities, the MC Group strives The MC Group includes approximately 1,400 companies, and to fulfill societal needs and meet stakeholder expectations as it works to raise its consolidated earnings for the group as a by simultaneously generating economic, societal and whole, it remains equally committed to growing each enterprise’s environmental value. own corporate value, while simultaneously generating economic, societal and environmental value. By leveraging the collective Adaptability capabilities found throughout its network of Group companies The MC Group prides itself on adapting to our ever- and over 130 Business Units, MC shall continue to innovate and evolving world by anticipating and responding to changes inspire