Operationsoperations
Total Page:16
File Type:pdf, Size:1020Kb
OPERATIONSOPERATIONS 40 Organizational Changes 42 Division Companies: Performance in Brief 44 Textile Company 48 Machinery Company 52 Metals & Minerals Company 56 Energy & Chemicals Company 60 Food Company 64 ICT, General Products & Realty Company 68 Overseas Operations 69 CFO / CSO / CAO & CCO 70 Net Income from Major Group Companies ITOCHU CORPORATION ANNUAL REPORT 2012 39 Organizational Changes As of April 1, 2012, ITOCHU revised its organization, following a previous round of reorganization measures in fiscal 2012. In recent years, we have broadened our business domains in step with the expansion of our business activities. Along with this expansion, the organization is getting larger and is now required to make more important decisions. After considering the importance of having the right person in the right place, including in the management ranks, and the relationships among industries, we reorganized the previous five Division Companies into six. We believe that we have established an organizational structure with the best possible balance. By establishing a more appropriate size for the organizational units in this way, we will strive to realize a more precise management in the years ahead. 1. Outline of the Organizational Changes of 2. Aim and Purpose of the Organizational Division Companies Changes The ICT & Machinery Company, Energy, Metals & Minerals Machinery Company Company, and Chemicals, Forest Products & General Mer- In fiscal 2012, the former ICT & Machinery Company was cre- chandise Company have been reorganized into the Machinery ated through the merger of its predecessors, and recorded Company, Metals & Minerals Company, Energy & Chemicals substantial year-on-year growth in profits. In addition, the Company, and ICT, General Products & Realty Company. The Division Company took steps to appropriately reallocate its previous 5 Division Companies have been reorganized into 6 management resources, including the optimal allocation of its Division Companies. personnel. However, the Division Company faced difficulties in managing its businesses as a single company. These difficulties Machinery Company included the diversity of its business areas and the scale of The Plant Project & Marine Division, Automobile & Construc- its human resources. Accordingly, we transferred the ICT tion Machinery Division, and Aerospace & Industrial Systems businesses to the ICT, General Products & Realty Company. Division have been reorganized into the Plant Project, Marine The aerospace businesses and marine businesses have & Aerospace Division and the Automobile, Construction Ma- many business partners in common, centered on heavy indus- chinery & Industrial Systems Division, which operate under try manufacturers, and the business models are similar. Con- the Machinery Company. sequently, synergies are expected. As principally trade- oriented business, industrial systems have affinity with Metals & Minerals Company automobiles and construction machinery. Accordingly, the pre- The Metals & Minerals Division has been renamed the Metals & vious three divisions have been reorganized into two divisions. Mineral Resources Division, and the New Energy & Coal Division has been renamed the Coal, Nuclear & Solar Division. Both of Metals & Minerals Company these divisions operate under the Metals & Minerals Company. Operations in the metals and minerals area have expanded due to the development of large-scale projects. Thus, to promote pre- Energy & Chemicals Company cise management, businesses in this area have been operated The Energy Division and the Chemicals Division operate under under one Division Company—the Metals & Minerals Company. the Energy & Chemicals Company. Energy & Chemicals Company ICT, General Products & Realty Company We merged the Energy Division and the Chemicals Division, The Forest Products & General Merchandise Division taking into consideration the affinity between the products operates under the ICT, General Products & Realty Company. they handle and their business models, which are centered The Information & Communication Technology Division has on trade, and anticipating synergies. been merged with the Logistics Services Department and the insurance services of the Financial & Insurance Services ICT, General Products & Realty Company Department, and reorganized as the ICT, Insurance & The newly formed ICT, General Products & Realty Company Logistics Division, which operates under the ICT, General centers on housing (forest products, general merchandise, Products & Realty Company. construction and realty) and ICT-related businesses. Businesses The financial services of the Financial & Insurance Services in the area of financial services overlap with businesses in the Department has been merged into the Construction & Realty area of realty, and therefore business activities in these areas Division, and reorganized as the Construction, Realty & Financial have been consolidated into one division to increase efficiency. Business Division, which operates under the ICT, General ICT, insurance, and logistics businesses have aspects that can Products & Realty Company. provide functional services not just in ICT, General Products & As a result of these reorganization measures, the Realty Company but throughout ITOCHU. While securing a Designated Business Division and the Headquarters certain scale of earnings by merging these businesses, we will Business Organization have been abolished. strive to generate synergies. ITOCHU CORPORATION 40 ANNUAL REPORT 2012 Previous: 5 Division Companies, 17 Divisions Current: 6 Division Companies, 16 Divisions Textile Material & Fabric Division Textile Material & Fabric Division Apparel Division Apparel Division Textile Textile Company Brand Marketing Division 1 Company Brand Marketing Division 1 Brand Marketing Division 2 Brand Marketing Division 2 Plant Project & Marine Division Plant Project, Marine & Aerospace Division Automobile & Construction Machinery Automobile, Construction Machinery & ICT & Division Machinery Industrial Systems Division Machinery Company Company Aerospace & Industrial Systems Division Information & Communication Technology Division Metals & Mineral Resources Division Metals & Minerals Division Metals & Coal, Nuclear & Solar Division Minerals Energy, New Energy & Coal Division Metals & Company Minerals Energy Division Company Energy Division Chemicals Division Chemicals, Forest Products & General Merchandise Energy & Forest Division Chemicals Products & Company General Chemicals Division Merchandise Company President & President & CEO CEO Provisions Division Provisions Division Fresh Food & Food Business Solutions Food Division Fresh Food & Food Business Solutions Company Food Division Food Products Marketing & Distribution Company Division Food Products Marketing & Distribution Division Forest Products & General Merchandise ICT, General Division Construction & Realty Division Products & Chief ICT, Insurance & Logistics Division Executive Realty for Company Construction, Realty & Financial Business Construction Division & Realty Chief Executive Financial & Insurance Services Administrative for Financial & Department Organizations Insurance (Headquarters) Services, Logistics Services Department Logistics Services Administrative Organizations (Headquarters) ITOCHU CORPORATION ANNUAL REPORT 2012 41 Division Companies: Performance in Brief Years ended March 31 Net Income Attributable to ITOCHU Total Assets 2012 2012 ¥300.5 billion ¥6,507.3 billion Textile Company 7.9% Textile Company 7.2% Machinery Company 7.5% Machinery Company 13.3% Metals & Minerals Company 46.0% Metals & Minerals Company 16.9% Energy & Chemicals Company 12.2% Energy & Chemicals Company 21.4% Food Company 14.2% Food Company 21.6% ICT, General Products & Realty Company 12.2% ICT, General Products & Realty Company 19.7% * % composition is calculated with the total for the business segments, before adjustments & eliminations and others. Textile Company Machinery Company Main Products and Services Main Products and Services Textile materials Oil, natural gas (gas processing, Aircraft and in-flight equipment Fabrics LNG, LPG), and petrochemical Air transportation management Apparel products plants systems Fashion goods and accessories Power generation / transmission Space-related equipment Industrial textiles facilities Security equipment Branded products based on total Project development, investment, Automobiles lifestyle-theme including apparel, operational management, and Construction machinery food, and living maintenance related to IPP / IWPP Industrial machinery (independent power producer / Semiconductor equipment independent water power pro- ducer) projects and other social / Electronic devices / electronics- industrial infrastructure related equipment Sea water desalination & distribu- Medical devices, services for tion / environment-related facilities clinical development and market- ing of pharmaceuticals, hospital- Facilities related to renewable and related services, and preventative alternative energy healthcare services Rolling stock / systems Ship trading, offshore equipment, ship charter, and own-ship operation Net Income Attributable to ITOCHU / Total Assets / ROA Net Income Attributable to ITOCHU / Total Assets / ROA (Billions of Yen) (Billions of Yen / %) (Billions of Yen) (Billions of Yen / %) 30 600 90 849.7 900 800.1 12 759.2 6 24.4 694.4 672.4 25 22.9 500 22.4 433.4 10 20.5 417.4 406.4 60 600 3.1 4 20 364.3 360.4 400 3.0 8 15.3 15 300 30 24.7 300 6.3 5.8 1.5 23.1 5.4