Mitsubishi Corporation Living Essentials Group Retail Div

June 28, 2018 Mitsubishi Corporation

Business Segment IR Meeting

Mitsubishi Corporation Living Essentials Group Retail Div.

１．Retail Div. Overview

２．Explanation of the main businesses

 Contribute to the sustainable, qualitative growth of Japan by building distribution platforms

 Bring outstanding brands and business models created in Japan to overseas consumers to exceed their expectations

Aim to solve various social problems such as low birth rate, graying population, labor shortages, and weakening foundations for daily life in regional areas outside major urban centers;

 Expand contact with consumers by fully utilizing our network of brick-and-mortar stores as well as our loyalty point and payment platforms to provide consumers with environments that enable seamless, convenient and enjoyable shopping in person and online and help realize an efficient consumer society.

 Strive to create new retail businesses

Retail Division Division COO: Kazunori Nishio

Strategy ＆ Planning Office Management support for the Retail Division; Planning of strategy, new projects and inter- General manager: Satoshi Yahagi department projects for the Retail Division

Digital Retail Innovation Office Collecting intelligence on cutting-edge technologies General manager: Satoshi Yahagi and business models in the retail sector; New (Concurrently) business development utilizing such intelligence

Food Retail Dept. Planning and execution of retail businesses, CVS Strategy&Administration Team Chain Store Team General manager: including convenience store (CVS) and Shigeru Minematsu supermarket businesses CVS Development Team RetailOperationSupportTeam

Apparel Dept. Product supply and retail business planning Fashion Apparel Team Consumer Products Team General manager: and execution in the fields of clothing, Shigeru Murata household goods and footwear

Clothing product supply and raw material S.P.A. Manufacturing Team S.P.A. Development Team S.P.A. Manufacturing Dept. procurement and supply for major SPA* General manager: companies; Planning and execution of Retail Team Tetsuya Yamada clothing and other retail businesses

Retail Support Dept. Sales promotion support business aimed at reinforcing retail support functions in areas Marketing Team Consumer Service Team General manager: related to data marketing and loyalty point Hiroya Nishimura and payment systems

The Retail Division’s Business and Main Operating Companies

Japan Overseas

Food Retail Dept. Lawson Lawson overseas CVS/SM business CVS Home meal replacement business Planning/marketing Life Corporation Acasia Foods Co., Ltd. Supermarkets Food courts

Food retail Food Transaction Media Retail Support Dept. MC Data Plus Networks Overseas customer Cloud service, data analytics Electronic payment and points service Data marketing;Customer points service, peripheral business Payment-related business d-rights Content Content/salespromotion support Loyalty Marketing Content and sales Customer points service promotion support management Digital Retail Development Office Intelligenceon cutting-edgetechnologies New business development

MUJI EUROPE HOLDINGS Apparel Dept. Clothing and household Mitsubishi Corporation goods sales Product supply for SPA companies Fashion Product planning/branding Apparel OEM MUJI U.S.A. Clothing and household Overseas business development goods sales

PT. FAST RETAILING THAI KURABO INDONESIA Spinning and weaving Clothing sales

SPA retail SPA S.P.A. Manufacturing Dept. OEM for SPA companies OEM for major UNIQLO (THAILAND) Limited Liability Company SPA business support SPA companies UNIQLO (RUS) Overseas business development Clothing sales Clothing sales

Position of the Retail Division within the Living Essentials Group and Main Operating Companies

Raw material procurement and processing Product manufacturing

Itoham Yonekyu CERMAQ Nosan Holdings Kanro Salmon & trout Livestock feed Meat Confectionary

OLAM Nitto Fuji Flour Milling Art Coffee Salad Club Coffee, cacao, etc. Flour milling Coffee Vegetables

Indiana Packers Nihon Shokuhin Kako THAI KURABO Sanyo Foods Meat Starch Spinning and weaving Marine products

Ipanema Japan Farm Coffee Meat Consumers with diverse needs, depending on region, Retail/Service affiliation, etc. Intermediate distribution

Retail Support Food Retail Dept. Dept. S.P.A. Manufacturing Dept.

MC Data Plus Lawson UNIQLO (THAILAND) Cloud service リテイル Data analytics CVS Clothing sales Mitsubishi Shokuhin Food Loyalty Marketing PT. FAST RETAILING Life Corporation INDONESIA Customer points Supermarkets Clothing sales Mitsubishi Shoji service Packaging Limited Liability Company Paper, packaging d-rights AcasiaFoods Co., Ltd. UNIQLO (RUS) Content and sales Food courts Clothing sales promotion support Toyo Reizo MUJI EUROPE Marine products Transaction Media HOLDINGS Clothing and household Apparel Dept. Networks goods sales Electronic payment and Foodlink peripheral business MUJI U.S.A. Mitsubishi Corporation Meat Clothing and household Fashion goods sales Copyright © 2018 Mitsubishi Corporation Apparel OEM ６ June 28, 2018 Mitsubishi Corporation Agenda

１．Retail Div. Overview

２．Explanation of the main businesses

• Lawson Inc., boasting 14,000 stores, will be the core of the consumer-focused value creation model that MC’s Living Essentials Group is working to create. • Convenience stores are becoming an essential part of Japan’s social infrastructure. MC will make full use of its collective capabilities and functions to support Lawson’s growth on all fronts, and at the same time, work to respond to the changing consumer market and solve social issues. MC currently have more than 50 people dispatched to Lawson.

Consumer value creation centered around Lawson

Building a consumer-focused value creation model Deepening our business model from a Changes in Social issues consumer-first perspective consumer Supplying products and services to customers markets - Low birth rate, graying - Rise of massive, population Product & service Consumer dominant platforms development needs - Labor shortages - Rapid evolution of - Logistics system technology  Precise analysis of consumers’ hidden needs - Growth in drug stores struggling to meet needs and understanding of challenges - Diversifying tastes - Weakening foundations  Develop products and services that contribute for daily life in regional to better living - Shift from owning to areas  Solve social issues sharing - Lack of access to retail  Realize ongoing local development - Falling domestic outlets  Implement consumer-focused Japanese demand business models overseas etc. Establishing broader contact with customers is essential

• Provide supermarkets—important centers of Japan’s food culture—with systematic, commercialized functions that utilize the MC Group’s resources and thereby help bring vitality to local communities. • Life Corporation is Japan’s leading supermarket chain (non-consolidated basis). MC provides multifaceted support for Life, including data analysis, marketing and product procurement. We have also dispatched three people, including director-class managers, to Life.

Supporting Japan’s food culture while helping bring vitality to local communities ■No. 1 food supermarket (non-consolidated basis) Sales: ¥677.7 billion Stores: 264 ■Stores in the two major markets of the Tokyo Consolidated net income: metropolitan area and the Kinki region. ¥12.6 billion Capital: ¥100.04 billion Management philosophy Top shareholder: Aim to contribute to the development and Mitsubishi Corporation (22.4％) betterment of society through ambitious, trustworthy management. Basic Policy of the 6th Four-Year Medium-Term Plan: To Fiscal 2021 Aim to be a business that is trusted by customers, society and employees and to be Japan’s leading supermarket in both name and substance with ¥800 billion in annual net sales and ¥20 billion in ordinary income.

Strategies that Stores are Life’s support the Penetration, center stage! strengths Realizing a unique Invest in Invest in Invest in unique Life Brand development Online super- Life brand that people stores products Management sup- and ongoing market strategy suits local port, infrastructure Card strategy initiatives customers strategy, etc.

• Support retail using point, consumption and payment data. • Building new distribution platforms that leverage point and payment data and working to provide environments that enable seamless, convenient, and enjoyable shopping in person and online. • Aim to help realize an efficient consumer society. Next-generation retail initiatives—Building new distribution platforms using point and payment data Retail

Data analysis cloud service launched Members: 87.12 million Joint data analysis service (as of May 31, 2018) Participating companies: 122 development with MC Data Plus (as of June 1, 2018) Major partners: Lawson, Showa Shell, Recruit, Himaraya, KFC Shareholders: MC (74.4％), INTEC, SIGMAXYZ Holdings Japan, Route Inn, Japan Airlines, Takashimaya, Urban Data expansion phase： Renaissance Agency, Albis, 2012: Ponta members exceed 5 million Nishimuta, etc.

MC entered the customer points service and electronic payment businesses Shareholders: MC (40.47％), Toyota Financial Services, NTT DoCoMo, NTT DATA, JCB, 2008: Established Loyalty Marketing and Sumitomo Mitsui Card, UC Card, Toyota Transaction Media Networks Finance, Internet Initiative, Dai Nippon Printing

• Reinforce SCM with global SPA companies through product procurement from global manufacturing bases and the provision of functions. • Dispatching personnel developed through our businesses to advance joint ventures conducted with global SPA companies in Thailand, Indonesia and Russia, where MC can effectively utilize its functions.

Manufacturing/Product Procurement Retail

Raw materials/ supply manufacturers

Mitsubishi Global Sewn Corporation, Global SPA products manufacturers Mitsubishi SPA companies (Japan, Asia) Corporation companies Overseas Fashion agencies

Product management Overseas Contracting support locations TREDIA CHINA Jakarta Phnom Penh Liaison offices

• Leveraging MC’s overseas network and collective capabilities to advance joint retail businesses with partner companies. • Providing multifaceted support, including functions like procurement and marketing and the dispatch of high-level managers to local companies. Uniqlo (Thailand, Indonesia, Russia)

China 1,496 stores Lawson (China, Thailand, Philippines, Indonesia) Taiwan 6.42 million users MC employees dispatched: China: 4 Indonesia: 1 38 stores 101 stores Philippines: 2 Thailand 34 stores Thailand: 2 Philippines Loyalty Marketing (Taiwan, Indonesia)

• Ponta point business in Taiwan and Indonesia Indonesia • Ponta Global Alliance Cloud international point platform • Launching service spanning Japan, Indonesia and Malaysia

20 million users 15 stores 37 stores