Mitsubishi Corporation INVESTORS'note

Mitsubishi Corporation INVESTORS’NOTE

[Security code 8058] JUN. 2010 No. 30 To Our Shareholders Top Message

Tackle Everything Head On

Ken Kobayashi President and CEO

Appointment as New President

It is my pleasure to write this letter following my confirmation as MC’s new president as of June 24. I joined MC in 1971 and was consistently involved with our machinery businesses, particularly ship-related business, from the early days of my career through the middle stages up to my promotion to division COO. From 2001, I resided in Singapore, the key hub for information in Asia, as general manager of our Singapore Branch, and witnessed firsthand the dynamism of the Asian economy, particularly the rapid growth of the Chinese economy. Following my appointment in 2007 as an executive vice president, I focused on creating a new business model of shosha-type industrial finance as CEO of the Industrial Finance, Logistics & Development Group under the guidance of our former president Yorihiko Kojima. Sogo-shosha have long used financing as a tool in their business activities.

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However, under this business model we began to target Strengthening the Management Base, financing as a future nucleus of MC’s overall operations by Developing Future Growth Drivers coordinating and cooperating with internal departments. One principle I have learned through various kinds of Today, the global economy is facing structural change. work and stuck to throughout my career is to tackle things Globalization, the growing prominence of emerging nations, head on, without resorting to dubious wheeling and dealing. changes in the balance of resource demand and supply, and Even if somehow taking a less than acceptable approach various other dynamics are catalyzing a change from the brings success, it is bound to be short-lived. At MC, we cyclical structure of the past. Amid this structural change, we rely on our general strengths to succeed in business, taking have entered an era in which management’s judgment and on tasks that lie ahead from a broad perspective. Amid decision-making ability is being put to the test. What tumultuous change in the global economy, we intend to business fields should be strengthened from a medium- to challenge new business opportunities, seeking to help long-term standpoint? And what measures should a company address various problems. Whatever the circumstances, take and when? I am determined to lead the MC Group to further growth by Through the INNOVATION 2007 and INNOVATION 2009 tackling things fairly and head on. medium-term management plans over the past six years, we sought to achieve sustained growth, while balancing earnings growth, capital efficiency and financial soundness. Despite the testing economic environment, we succeeded Appointment as Chairman of the Board at consistently generating net income of over ¥200.0 billion. We have also built up total shareholders’ equity to a record On June 24, 2010, I retired as president and was appointed chairman of the Board. level of close to ¥3 trillion. Based on these achievements, During my six years as president, I worked to raise MC’s I believe we have created a strong earnings base and corporate value on a consolidated basis, guided by the vision in our INNOVATION 2007 and INNOVATION 2009 ﬁnancial position for forging ahead in this new era. plans of establishing MC as “A New Industry Innovator.” I believe that my role is to further strengthen these bases One of my goals at the outset was to create a company that as well as grow future earnings drivers. could consistently deliver net income of ¥200.0 billion. I think we achieved that goal. We see new energy, the environment and the water MC’s new president, Mr. Kobayashi, has experience business as growth ﬁelds that will drive earnings in the future. managing one of our offices in fast-growing Asia, and also In order to develop these businesses, we launched the as CEO of the Industrial Finance, Logistics & Development Group. With this background, I believe he is well qualified to Global Environment Business Development Group, thereby Yorihiko Kojima provide global leadership and to create new business models. bolstering our framework. This new group will harness our Chairman of the Board I am confident that he will guide the MC Group to further growth and innovation. companywide expertise and knowhow to not only develop Naturally, I will support him as chairman of the Board. future earnings pillars in these fields but also to contribute I look forward to your continued support. to the continuous advancement of society.

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Strengthening group-wide management will also be With the support of our shareholders and other important to driving the sustained growth of the MC Group. stakeholders, we succeeded in creating a strong Since the late 1990s, we have worked to reform our business management base under INNOVATION 2007 and models. As a result of these efforts, we have shifted focus INNOVATION 2009. The mission of the officers and to business investments, to the extent that today business employees of the MC Group is to generate the highest investees account for the lion’s share of our earnings. For possible earnings and benefits from the assets that reason, as we look ahead, we are once again enhancing with which we are entrusted. I want to create an and strengthening our group management foundations. One environment that encourages all employees to tackle recent action in this regard was to establish the Business their work head on with a sense of reward and pride Service Group, which consolidates fields responsible for to deliver results and feel a sense of accomplishment. business infrastructure such as IT, logistics and insurance. The The sense of accomplishment of each and every Business Service Group provides functions that support the individual will be the wellspring of greater MC Group businesses of the MC Group. How well we incorporate the corporate value, which in turn will have beneﬁts for information from our offices and MC Group companies— our shareholders and other stakeholders. MC has more than 200 ofﬁces around the world and over 500 We live in changing times, but opening up a new business investees—in the management of MC will be era is both challenging and meaningful. Thank you important. I believe that it is vital that we create a framework for your ongoing support for MC. We will do our very to ensure we fully absorb the valuable information that only best to ensure that we live up to your expectations. local operations can provide and use it as a group strength. I will announce my management vision, growth strategy and other information when we release our next medium-term management plan in the near future. June 2010 Personal Data Ken Kobayashi Ken Kobayashi President and CEO

Nickname: Kobaken Career Proﬁle Date of birth: February 14, 1949 Jul. 1971 Joined MC (Ship Sales Dept.), later stationed at the London Branch Personal motto: May 1998 GM, Ship & Industrial Project Dept. “Keep your ambitions high and your head down” Apr. 2001 GM, Singapore Branch Hobbies: Reading, golf and rakugo* Successively held posts as COO, *Japanese-style comic storytelling Plant Project Div., and COO, Ship, Aerospace & Transportation Systems Div. Listening to rakugo by Shinsho while drinking Apr. 2007 EVP; CEO, Industrial Finance, Logistics & a whiskey & water after work Development Group Apr. 2010 SEVP; Executive Assistant to President Jun. 2010 President and CEO

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Net income as used in this INVESTORS’ NOTE refers to net income attributable to Mitsubishi Corporation, excluding noncontrolling interests. This is equivalent (April 1, 2009 to March 31, 2010) to consolidated net income used through the year ended March 2009. Also, shareholders’ equity refers to total Mitsubishi Corporation shareholders’ equity, Year Ended March 2010 Operating Results excluding noncontrolling interests. This is equivalent to consolidated shareholders’ equity at March 31, 2009.

Looking Back on the Past 6 Years—Achievements of INNOVATION 2007 Net Income and Dividends and INNOVATION 2009 Medium-Term Management Plans ■ Net income: ¥273.1 billion (Down ¥96.8 billion, or 26%, year on year) Throughout the course of the INNOVATION 2007 and INNOVATION 2009 medium-term The Metals and Energy Business Groups saw earnings drop because of the impact of lower management plans, our basic policy for six years was to aim to achieve sustained growth, crude oil, coking coal and other resource prices. However, the Machinery, Chemicals and while balancing earnings growth, capital efficiency and financial soundness. While we faced Living Essentials Groups, which are not heavily affected by resource prices, recorded higher a difficult business environment caused by the financial crisis that began in the U.S., we earnings. Furthermore, the Industrial Finance, Logistics & Development Group recorded a think we adequately achieved our initial goal of consistently generating net income of at least much narrower loss. (Please refer to page 8 for net income for each business group.) ¥200.0 billion. For the period from the year ended March 2005 to the year ended March 2010 we made ■ Annual ordinary dividend per share: ¥38 per share (Year-end dividend: ¥21 per share) investments*1 of approximately ¥2.9 trillion. Of this amount, we invested approximately ¥1.0 In accordance with our dividend policy, we declared an annual ordinary dividend per share trillion in the energy and metal resources fields. The remaining approximate ¥1.9 trillion was of ¥38, ¥4 higher than the ¥34 initially forecast, because we exceeded our initial forecast for invested in other fields. We believe that these investments made over the past six years have net income of ¥240.0 billion announced in October 2009 by ¥33.1 billion and our earnings are laid the foundations for growth over the medium and long terms. recovering. This dividend equated to a consolidated dividend payout ratio of approximately 23%.

�� Dividend Policy �� Our policy is to link our dividend to net income in each fiscal period to directly return �� earnings to shareholders. We target a consolidated dividend payout ratio in the range �� of 20% to 25%. �� ■ Year Ending March 2011 Forecasts �� Net income: ¥370.0 billion (Up ¥96.9 billion, or 35%, year on year) �� Annual ordinary dividend per share: ¥52 per share (Up ¥14 per share year on year) We are forecasting net income of ¥370.0 billion for the year ending March 2011 based on ■ Indicators and Figures recovering commodity prices and other factors. If we achieve this forecast, we plan to pay �� an annual ordinary dividend per share of ¥52, an increase of ¥14 per share year on year, �� 500 2.5 25 and representing a consolidated dividend payout ratio of approximately 23%. 470.9 2.3 419.3 400 356.7 2.0 20 369.9 370.0 ■ Net Income and Dividend per Share 1.9 18.6％（��）（��） 15.9％ 16.3％ 1.6 600 60 300 1.5 273.1 1.5 15 52 52 13.7％ 1.4 1.3 1.3 14.1％ 1.3 1.3 �� 56 1.2 1.2 12.0％ 500 46 50 �� 10.2％ �� 200 186.6 1.0 1.0 1.0 1.0 10 �� 38 470.9 370.0 400 35 40 419.3 100 0.5 5 300 356.7 369.9 273.1 30

18 200 20 0 0.0 0 �� 186.6 �� 100 10 �� 330 370 450 750 700 270 700 0 0 ��

�� 6yen 13yen 18yen 26yen 36yen 17yen 26yen �� *1 Gross investments excluding asset realignments and depreciation, etc. �� 12yen 22yen 28yen 30yen 16yen 21yen 26yen *2 Return on Equity = Net income divided by shareholders’ equity �� 18yen 35yen 46yen 56yen 52yen 38yen 52yen *3 Net interest-bearing liabilities = Gross interest-bearing liabilities (bank borrowings, corporate bonds, commercial paper, etc.) that must be repaid with �� interest, minus cash and cash equivalents. The ratio is in comparison to shareholders’ equity. �� 15% 16% 19% 20% 23% 23% 23% *4 Related investments and non-current receivables + cost of available-for-sale securities (shares only) + unlisted securities + property and equipment �� (excluding real estate held for development and resale) + intangible assets + goodwill

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Year Ended March 2010 Operating Results

Net Income by Business Group Changes in Shareholders’ Equity and Interest-Bearing Liabilities

�� Amounts less than ¥0.1 billion have been rounded. 450 （��） (Times) 400 4.0 3.0 8.5 82.8 3.5512 350 �� 3.4219 73.0 3.3000 �� 3.2000 300 3.0609 �� 2.9184 2.9552 2.9614 71.9 �� 3.0 2.8735 250 �� 2.0 �� 216.7 2.3834 200 185.0 �� 369.9 370.0 �� 137.9 �� 2.0 1.5 150 273.1 �� 1.2 100 17.8 23.6 38.0 �� 1.0 1.0 1.0 1.0 26.8 �� 32.4 25.0 50 34.0 �� 1.0 �� 33.0 45.1 48.0 0 �� △41.2 △30.2 △7.5 △50 △7.6 �� 0 0.0 �� ■I ■ ■ ■ ■ �� ■ �� ■ ��

Industrial Finance, Logistics & Machinery Group Shareholders’ equity rose ¥578.0 billion to a record-high level of ¥2,961.4 Development Group Segment net income increased ¥5.8 billion, despite billion. In addition to the accumulation of net income, this reflected an The segment net loss narrowed ¥33.6 billion year the write-down of Mitsubishi Motors Corporation on year, despite the write-downs of Japan Airlines preferred stock, lower ship charter rates, and lower increase in net unrealized gains on securities available for sale resulting Corporation (JAL) and other shares. This improvement transactions of machinery and equipment sold from an increase in unrealized gains on listed shareholdings, and an in large volumes. The increase mainly reflected reflected decreased total share write-downs and improvement in foreign currency translation adjustments as a result of the increased fund investment-related earnings. higher earnings at overseas IPP* businesses and lower share write-downs and impairment losses on yen’s depreciation against the Australian dollar. Energy Business Group property and equipment. Net interest-bearing liabilities declined ¥596.0 billion from March 31, Segment net income declined ¥10.9 billion year on 2009 to ¥2,955.2 billion due to the lower demand for funds for working year. Although impairment losses on property and Chemicals Group equipment decreased at overseas resource-related Segment net income increased ¥5.6 billion, despite capital and other requirements. The net debt-to-equity ratio, a measure of subsidiaries, the segment recorded decreased lower earnings on transactions due to a decrease financial soundness, was 1.0, a significant 0.5 point improvement from 1.5 earnings on transactions at overseas resource- in chemical product prices. The higher earnings related subsidiaries and lower equity-method reflected lower share write-downs, and an increase at March 31, 2009. earnings from overseas resource-related business in equity-method earnings due to the reversal of investees due to lower crude oil prices and the deferred tax liabilities of a petrochemical business- stronger yen. Another factor was losses related to related company. fuel derivative transactions for a JAL subsidiary. �� Living Essentials Group Metals Group Segment net income increased ¥11.1 billion year �� Segment net income declined ¥78.8 billion due to on year, despite lower earnings on transactions at �� decreased earnings on transactions at an Australian food-related businesses and general merchandise- related subsidiaries, and losses at a LAWSON, INC. resource-related subsidiary because of lower �� coking coal sales prices, and losses related to fuel subsidiary. The overall segment result reflected lower �� share write-downs. derivative transactions for a JAL subsidiary. This �� was despite lower share write-downs. →�� →�� *IPP (Independent Power Producer): An independent operator who �� generates electricity with proprietary facilities and sells it to power companies.

8 9 Special Feature Aiming to Grow Further as a Global Business Enterprise An Enhanced Framework to Better Facilitate Our Growth Strategy

We conducted an internal corporate reorganization in April 2010 to facilitate stepped-up efforts to drive medium- and long-term growth in fields such as new energy, the environment and water, infrastructure and IT services.

Global Environment Business Development Group Organizational Structure (As of April 1, 2010) and Business Service Group Launched �� In April 2009, we designated four areas for actions. By strengthening our portfolio and ��

corporate development: “Functional fostering greater cooperation among our �� Development,” “Business Sector Development,” business groups, we aim to develop these �� “Customer Relationship Development,” and businesses into future growth ﬁelds. To facilitate �� “Regional Development.” Along with this, we this, we recently established the Global �� also established the Corporate Development Environment Business Development Group. �� Section, which reports directly to MC’s This new organization has taken over the �� president. This division plans and executes overseas power generation and energy solutions �� medium- to long-term growth strategies in businesses from business groups. It is leading �� each development area. It also monitors our efforts in the infrastructure business �� trends in the development of cutting-edge with a focus on the global environment, while ��

technologies and supported the development endeavoring to establish new earnings models. �� efforts of our business groups in the We have also established the Business �� aforementioned four areas. Service Group, so as to provide specialist ��

In the new energy, environmental and services in an integrated manner in business �� water businesses, which we have been domains such as logistics, insurance and �� developing under “Business Sector trade management as well as IT services, �� Development,” we are building momentum which until now have been carried out as part �� through investments and other concerted of “Functional Development.”

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Role of the Main Businesses and Activities Global Environment Business Bio Energy Business Development Group New Energy Power Generation We are developing and promoting biomass fuel businesses, biomass fuel-related funds and other activities. This group aims to develop We are promoting solar thermal, solar We produce wood biopellets, like those pictured, at plants in Japan commercially viable businesses and photovoltaic and wind power generation and Europe (Germany). We have also teamed up with Weyerhaeuser establish earnings models in new businesses and projects, as well as conducting Company (Washington State, U.S.A.), one of the world’s leading forestry energy, environmental and water, and trading activities in solar cells and silicon raw products companies, to conduct a commercial feasibility study for a proposed manufacturing facility in the U.S. power generation fields. It promotes materials and promoting the wide uptake of these businesses as future growth ﬁelds fuel cells. and also engages in the infrastructure We are participating Automotive-Related Business Environmental Solutions Business business in each of them. in a solar photovoltaic In Japan and overseas, This group also identifies cutting- power generation We are promoting a number of automobile- project developed by related businesses in Japan and overseas, we are engaged in edge technology trends and unearths, Spanish company including manufacturing lithium-ion batteries environmental, energy- proposes and create new businesses ACCIONA S.A., one of the world’s foremost for electric vehicles. saving and recycling- to address rising needs for the creation renewable energy related businesses. of eco-friendly, low-carbon societies. companies. K y o t o - b a s e d business investee Pictured is an energy center Lithium Energy at the Isehara campus of Global Power Generation & Marketing Japan (LEJ) mass Tokai University, Japan. Our business investee Japan Facility produces lithium- Solutions, Inc. is providing onsite energy supply services at i o n b a t t e r i e s . We are promoting private-sector power this energy center, which it designed and built with energy- I t s b a t t e r i e s saving engineering expertise acquired through its ESCO (Energy Role of the generation businesses overseas centering on a r e u s e d i n Service Company) business*. Business Service Group the IPP* model. Mitsubishi Motors Corporation’s new electric vehicle, *A business that provides one-stop services extending from building energy *IPP (Independent Power Producer): An independent operator who generates the i-MiEV. In April 2010, LEJ decided to build a new diagnosis and energy-saving design, to construction, ﬁnance, maintenance, electricity with proprietary facilities and sells it to power companies. plant that is scheduled to begin commercial operation and guarantee and validation of energy-saving results. at the beginning of the year ended March 2013.

This group supports a sophisticated ⇦ Pictured is the Tuxpan V group management framework through Power Station in Mexico. We are Consulting & SI* Businesses the provision of specialist functional operating this power station and Water Business Tuxpan II with Kyushu Electric We are developing and expanding business services such as IT. These services eye Power Co., Inc. We are conducting water-related consulting services, strengthening our SI the advent of the cloud computing* age businesses, including operating water business and developing an information security- and help raise the enterprise value of ⇨ The Ho-Ping Power Station in treatment plants, in Japan and overseas. related business. MC and its group companies, support Taiwan. Hong Kong-based Diamond Generating Asia Limited, an MC *System Integration: The integration and operation of information systems. business process reform, and provide S h o w n h e r e business investee developing an IT Frontier Corporation, IPP business in the Southeast Asia is a water and assistance for business development. which provides IT-related region, operates this facility with w a s t e w a t e r And the knowhow it accumulates another Hong Kong company called treatment facility business solutions, SI through these activities, will be used to CLP Holdings Limited and Taiwan i n Z i m b a b w e services and other IT Cement Co., Ltd. for which Ebara services, and SIGMAXYZ provide services to existing and new E n g i n e e r i n g Inc., which provides MC customers as the Business Service ⇦ The Indigo Power Plant Services Co., Ltd. (EES) provided the machinery and business consulting services using information Group seeks to create new business (pictured) in the U.S. is operated power equipment. MC and JGC Corporation have by Los Angeles-headquartered each acquired a 33.3% equity interest in EES, a water and telecommunications Diamond Generating Corporation, opportunities. business subsidiary of EBARA CORPORATION. The technology, are creating a business investee developing an new businesses with IT. *A way of using computers by making full use of networks. IPP business. three shareholders aim to expand jointly operated With cloud computing, users can use applications, servers, businesses in Japan and overseas. services and various other resources scattered across the Internet.

12 13 B u s i n e s s H i g h l i g h t ■Cards Issued and Services Begin for Ponta Multi-Partner Loyalty Program Major Recent News Wholly owned MC subsidiary Loyalty Marketing, Inc. began rolling out a multi-partner ■Development of a Low-Carbon-Emitting Condominium— loyalty program in March 2010 TERRACE TOYOCHO NXTOWER with LAWSON, INC., Showa We actively develop eco-friendly condominiums. The TERRACE Shell Sekiyu K.K. and GEO TOYOCHO NXTOWER in Tokyo’s Koto Ward, whose condominiums Corporation. This program we began selling in fall 2009, boasts equipment with outstanding enables users to collect and energy efficiency, contributing to reduced CO2 emissions. What’s redeem points at partner more, an enlarged area set aside for greenery has enhanced living and stores. For customers, Ponta This condominium emits surrounding environments and use of recycled materials and water- approximately 27% less CO2 makes it easy to build up saving equipment contribute to efﬁcient resource use. than the CASBEE*2 standard points with a single point card, Beyond the building itself, we are contributing to better living and for CO2 emissions. whereas partner companies surrounding environments by offering various services, including a car Information on MC’s housing business should be able to build larger sharing scheme using MMC-made i-MiEV electric vehicles*1. can be found on the MC Style website customer bases. At present, (Japanese only) *1 A scheme involving the joint use of one vehicle among multiple registered members 18 companies are participating *2 Comprehensive Assessment System for Building Environmental Efﬁciency (CASBEE): A system that http://www.mcstyle.com/ in this program. comprehensively assesses the environmental performance of buildings.

2009 2010 NOV. DEC. JAN. FEB. MAR.

■Joint CSR Activities With ■Participation in Uranium ■MC and Weyerhaeuser Company to Conduct Commercial Feasibility Inter-American Development Bank Exploration Projects Study in the Biofuel Field (See page 13) MC announced that it will cooperate with Inter- MC has agreed to participate ■ American Development Bank (IDB) to support in uranium exploration projects EBARA, MC and JGC Agree to a Joint Venture in the Water Business (See page 13) the social and economic development of small- in Mongolia being conducted medium rural agricultural producers in the state by AREVA, a French nuclear ■MC to Participate in an Oilﬁeld Development Project in Venezuela’s of Bahia, Brazil. energy company. AREVA holds Orinoco Belt This project is being executed by an NGO 36 uranium exploration licenses under the umbrella of Odebrecht Holdings, on more than 14,000 km² of MC, U.S. company Chevron, Inpex Corporation, and Venezuela’s Suelopetrol have one of Brazil’s largest conglomerates. At land in Mongolia. acquired rights to develop heavy crude oil* in the Carabobo blocks situated along the same time as helping farmers achieve In other news, in February Orinoco River. A Joint Venture Agreement was signed in May 2010 with the Venezuelan independence, the project will spread 2010 we acquired a 50% national oil company. The project aims to produce 400,000 barrels of oil per day for sale. knowledge regarding the sustainable interest in the West McArthur *Refers to oil with a high viscosity and specific gravity. production and sale of agricultural produce uranium exploration project through education and training on in Canada’s Saskatchewan environmental protection. Province. We will support ��

MC plans to contribute US$150,000 exploration activities through �� per year for up to 3 years, subject to a joint venture formed with �� annual review of the achievements and Canadian exploration company �� results of the project. CanAlaska Uranium Ltd.

14 15 Business Highlight

■MC Healthcare, Inc. Established by Integrating Nihon Hospital Service ■MC Acquires Additional Ownership Interest in Co., Ltd., Apprecia, Inc. and MC Medical, Inc. Escondida Copper Mine in Chile MC announced the integration of three business investees into one company. These business A joint venture established by MC, Nippon Mining & Metals investees procured pharmaceuticals and medical supplies and medical equipment for hospitals Co., Ltd. and Mitsubishi Materials Corporation acquired as well as imported and distributed medical devices. The aim of integrating the previously an additional ownership interest from International dispersed functions is to become a total solutions partner for medical and healthcare institutions. Finance Corporation in the Escondida copper mine, which produced 1,078,000 tons of ﬁne payable copper in 2009, ■ Merger of Mitsubishi Corporation Unimetals Ltd. and Mitsubishi Shoji making it the world’s largest copper mine. This increased Light Metal Sales Corporation MC’s ownership interest from 7.0% to 8.25%. MC decided to merge Mitsubishi Shoji Light Metal Sales Corporation, which has trading expertise mainly in aluminum, and Mitsubishi Corporation Unimetals Ltd., which is a core company for ■Operations Commence at One of Australia’s MC in the midstream and downstream sectors of the non-ferrous metals business. This move is Largest Coal Mines aimed at growing the non-ferrous metals business and increasing customer satisfaction. Clermont Mine, located in Queensland, Australia, commenced operations. MC holds a 31.4% interest in this ■MC and Shinmei Agree to a Business and Capital Alliance thermal coal mine through its wholly owned subsidiary MC formed a business alliance with Shinmei Co., Ltd., which operates rice mills and a Mitsubishi Development Pty Ltd (MDP), which invests processing and distribution network in Kanto, Kansai and Kyushu and boasts an advanced in, produces and sells metal resources. Plans call for the quality control system. As part of this alliance, MC acquired a 20% equity interest in Shinmei. mine to reach its full capacity of 12.2 million tonnes per MC’s goal is to provide safe, high-quality and great-tasting rice and spur increased consumption. annum of thermal coal for power plants by 2013.

2010 APR. MAY

■Lithium Energy Japan Commits to Construction of a New Plant ■Private-Public Consortium Acquires Australian Water Company (See page 13) MC, Innovation Network Corporation of UUA Business Sites Japan, JGC Corporation and Manila Water ● �� Company, Inc. (an MC investee) teamed ◆ �� ■ �� “MC Volunteer Activity!” Social Contribution Report up to acquire United Utilities Australia �� ▲ �� for the Year Ended March 2010 Released Pty Limited and its Australian related �� entities (UUA). UUA is a water company ● ◆ �� Since the year ended March 2006, MC has been running established in 1991 by United Utilities PLC ▲● “MC Volunteer Activity!,” a program designed to promote (United Utilities), one of the U.K.’s largest �� volunteer activities among employees. Under this program, water companies. UUA is engaged in 14 ◆ corporate officers and employees are encouraged to take part in volunteer activities at least businesses, including water and wastewater ▲ ● once a year, earning a “token” worth a corporate donation of ¥500 every time they volunteer. treatment, desalination, industrial �� In the year ended March 2010, a total of 11,000 tokens were earned. Based on this result, wastewater treatment and reclamation, in �� MC made donations amounting to ¥5.5 million to 6 groups, including NGOs in the ﬁelds of Australia, providing services to over 3 million ■ ■ ● public welfare, education and the environment. MC also made donations people. The public-private consortium ● ● ■■ to a scholarship fund in Laos to help children throughout their plans to utilize the expertise of the Bureau �� ◆● elementary education, and a project constructing child educational of Waterworks of the Tokyo Metropolitan facilities in Tanzania, Africa. Moreover, donations from employees Government in operating this business. totaling ¥206,840 were used to provide 104 picture books to childcare facilities across the country.

16 17 �� Plastics Business ■ �� Plastics are indispensable for all manner of industries, as well as in �� our daily lives. Mitsubishi Corporation (MC) is developing a value �� ● ● ● SHARQ SHARQ chain that extends from the production of plastic raw materials to �� the sale of processed products. Combining both trading, which �� involves export, import, domestic and offshore trading, and �� business investment, MC is endeavoring to tap into global growth. �� SHARQ

Building a Global Supply and Sales Framework Tri-Pack ��

�� Plastics are made mainly from petroleum Bangladesh and Pakistan, in the midstream �� and natural gas. MC’s plastics business part of the value chain. MC also sells ��

covers a broad range of ﬁelds, extending molded products that are produced by �� from commodity plastics to industrial these companies. And in the downstream �� resins and PET resin. sector involving the sale of plastics and �� Commodity plastics trading activities molded products, we are able to supply �� are a business mainstay and here we globally through Mitsubishi Shoji Plastics ��

�� have built a network for consistently Corp. and Kibikasei Co., Ltd. in Japan, �� procuring raw materials from suppliers and through North American company �� around the world. The axis of this network MIP*2 and our overseas bases. *1 is Saudi Arabian company SHARQ , an *1 The common name of Eastern Petrochemical Co. This upstream MC business investee. We also company is owned 50-50 by Saudi Petrochemical Focused on Developing Professionals Globally and Group-wide Development Co. (SPDC), which was established by a have invested in or maintain business consortium of Japanese companies including MC, and alliances with leading processing by Saudi Basic Industries Corporation (SABIC). There are various types of plastics stably source cost-competitive raw *2 Mitsubishi International PolymerTrade Corporation (100% depending on the application. Because materials from SHARQ and other companies in Asia, including China, owned by MC, headquartered in New York, U.S.A.) of this and the fact that petroleum and suppliers with whom MC has long-

natural gas feedstocks are commodities, term contracts. In April 2010, SHARQ Polycarbonate is a prime example of a high level of specialist knowledge and completed expansion work, doubling its A Plethora of Plastics an engineering plastic and is widely used in auto parts and other areas. sophisticated trading expertise are production capacity. Armed with this Plastics come in diverse forms and with various a re used mainly in required in this business. That’s why additional capacity, our staff around features depending on the application. automobiles, home Commodity plastics, for instance, mainly appliances, and office we put a lot of effort into developing the world are now working to secure include polyethylene (PE) and polypropylene equipment. Then there plastics professionals around the customers and we plan to make (PP), which are used in everyday products, is PET resin, the raw material for soft drink world and across the MC Group. This investments in midstream processing construction materials, bottles. Plastics is a simple word—but it covers development program includes stationing companies. We also plan to expand packaging materials and a a huge range of products that are vital to our host of other applications. daily lives. personnel overseas and running training business into Russia, Central and Eastern Industrial resins such as Polycarbonate is a prime example of an courses for MC, Mitsubishi Shoji Plastics Europe, South America and other countries specialty engineering engineering plastic and is widely used in auto and other personnel. and regions where demand for plastic plastics and acrylic resin parts and other areas. MC’s strength lies in its ability to raw materials is growing.

18 19 Global Development of the Plastics Business Plastic resin is mainly processed A Worldwide MC Business into granules for trading. MC has built a system for consistently procuring plastics raw materials, particularly from SHARQ, to satisfy a broad range of needs of customers around the world. Mitsubishi International PolymerTrade Corporation This wholly owned MC trading company in New York sells, imports and exports mainly plastic raw SHARQ materials, resin and molded products in North Established in Al Jubail, Saudi Arabia America. In April 2010, it merged with a trading in 1981, SHARQ is an important base company specializing in specialty chemicals as in the upstream part of the value chain, part of its drive to expand business in North producing ethylene, PE and ethylene America. glycol. SHARQ completed third-stage expansion work in 2009, and commenced commercial production at these new facilities in April 2010. Through facility expansion, SHARQ has doubled its Kibikasei Co., Ltd. annual capacity to 2.5 million tons of A chemical products trading ethylene, 1.6 million tons of PE and 1.5 company, Kibikasei is primarily million tons of ethylene glycol. QAMAR, engaged in the custom production a butane linear low-density polyethylene under contract of general and one of SHARQ’s core products, merchandise, food items and is an ideal raw material for making medical goods. It also handles film because of its resistance to the raw materials that are used in perforation and tearing, and is used these types of products, such as for plastic bags, as well as packaging synthetic resins, ﬁlms and chemical materials for food, clothing and other products, as well as in materials items. �� for agriculture, construction SHARQ-made products are sold materials, machinery, molds and around the world, primarily by processing �� other products. Kibikasei is companies in China, Southeast Asia and �� developing unique businesses with Europe. various functions, involving �� everything from raw materials to �� processing and molds. �� Mitsubishi Shoji Plastics Corp. Wholly owned by MC, this trading company specializes in plastics, and is involved in everything from the import and export of commodity plastics, industrial resins, PET resin and related molded Tri-Pack Films Limited products through its nationwide network in Japan to the sale of MC’s Main Overseas Bases This company was established in Karachi in 1993 as a joint venture products to domestic customers. In January 2009, the former MC’s overseas bases in London, Germany between MC and local companies. A leading manufacturer in Pakistan, Mitsubishi Shoji Plastics and another MC business investee, (Düsseldorf), Thailand, Hong Kong, Shanghai Tri-Pack Films produces mainly Fujisangyo Co., Ltd., merged to form the new Mitsubishi Shoji and elsewhere around the world are engaged biaxially oriented polypropylene Plastics, strengthening business functions. In cooperation with in procurement and sales activities in each (BOPP) film. BOPP film boasts MC, Mitsubishi Shoji Plastics is focusing on global development region. Leveraging trading expertise and outstanding transparency, elasticity to stay abreast of moves offshore by its customers, including advanced specialist knowledge, these and strength. These properties mean manufacturers of automobiles, home appliances, ofﬁce equipment, bases collaborate with the head office to it is used as a packaging material and parts and components. play a vital role in developing overseas by food processors, pharmaceutical business by building relationships of trust manufacturers and other customers. with local plastics suppliers and end users.

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