Energy Segment

June 22, 2012

Mitsui & Co., Ltd. Energy Business Unit Ⅰ& Energy Business Unit Ⅱ

A Cautionary Note on Forward-Looking Statements: This(注) material 本資料にて開示されているデータや将来予測は、本資料の発表日現在の判断や入手可能な情報に基くもので、 contains statements (including figures) regarding Mitsui & Co., Ltd. (“Mitsui”) ’s corporate strategies, objectives, and views of future developments that are forward-looking in nature and are not種々の要因により変化することがあり、これらの目標や予想の達成、及び将来の業績を保証するものではありま simply reiterations of historical facts. These statements are presented to inform stakeholders of the views of Mitsui’s management but should not be relied on solely in making investment and other decisions. You should be aware that a number of important risk factors could lead to outcomes that differ materially from those presented in such forward-looking statements. These include, せん。また、これらの情報が、今後予告なしに変更されることがあります。従いまして、本情報および資料の利用 but are not limited to, (ⅰ) change in economic conditions that may lead to unforeseen developments in markets for products handled by Mitsui, (ⅱ) fluctuations in currency exchange rates that may causeは、他の方法により入手された情報とも照合確認し、利用者の判断によって行なって下さいますようお願いいたし unexpected deterioration in the value of transactions, (ⅲ) adverse political developments that may create unavoidable delays or postponement of transactions and projects, (ⅳ) change in laws, ます。本資料利用の結果生じたいかなる損害についても、当社は一切責任を負いませんregulations, or policies in any of the countries where Mitsui conducts its operations that may affect。 Mitsui’s ability to fulfill its commitments, and (ⅴ) significant changes in the competitive environment. In the course of its operations, Mitsui adopts measures to control these and other types of risks, but this does not constitute a guarantee that such measures will be effective. Agenda

• Energy Segment in Mitsui

• Overview

• Strategy in each operating business field

• Topics

•Q&A

1 Agenda

• Energy Segment in Mitsui

• Overview

• Strategy in each operating business field

• Topics

•Q&A

2 Energy Segment in Mitsui

General Meeting of Shareholders Corporate Board of Corporate Auditors Auditors Board of Directors

Corporate Management President & CEO Administrative Committee Divisions

Operating Segments (10) (3 Regional Business Units) Mineral & Innovation Americas Iron & Steel Machinery & Metal Chemicals Energy Lifestyle & Cross EMEA Products Infrastructure Resources Function AP

Headquarter Business Units (15) + Regional Business Units (3) Mineral & Iron & Steel Infrastructure Basic Energy Food Metal IT Americas Products Projects Chemicals Business unit Ⅰ Resources Resources

Motor Food Performance Financial & Vehicles & Energy Products & EMEA Chemicals Business Unit Ⅱ New Business Construction Services Machinery Consumer Transportation AP Marine & Service Logistics Aerospace

3 Energy Segment in Mitsui

Consolidated ※Consolidated Net Income Number of ※At each Fiscal Year Beginning (April 1st)/Non- Net Income attributable to Mitsui & Co., Ltd. Employees consolidated

Gross Asset Investment ※At each Fiscal Year Ending (March 31st)

4 Agenda

• Energy Segment in Mitsui

• Overview

• Strategy in each operating business field

• Topics

•Q&A

5 Business Fields and Activities

Business Fields Activities Major subsidiaries and associated companies Oil & Gas Upstream Oil & Natural Gas Exploration, Mitsui E&P Australia (E&P) Development, Production Mitsui E&P Middle East MOECO Mitsui E&P USA Mitsui E&P Texas Coal Development, Production, Coal Mitsui Coal Holdings Import, Intermediate Trading BHP Mitsui Coal

Importing & Exporting Crude Oil/ Mitsui Oil Co., Ltd. Oil Trading & Petroleum Products, Intermediate ENEOS GLOBE Corporation Mitsui Energy Trading Singapore Marketing Trading, Domestic Petroleum Refinery, Oil/LPG Distribution

Uranium Mine Development, Nuclear Fuel Nuclear Cycle Business Mitsui Gas Development Qatar Expansion of Existing LNG Business Mitsui Sakhalin Holdings LNG Commercialization of New Natural Gas Mitsui & Co. LNG Investment Mitsui E&P Mozambique Area I Japan Australia LNG (MIMI) Gas Trading & LNG Trading, Sales of Marketing North American Pipeline Gas MMGS

Environmental Energy Biomass Energy, Emission Trading, & New Energy Hydrogen, CNG, NGH, etc.

6 Upstream Assets in Energy Business

End of March, 2012

Poland Shale

Thai/L10/43, L11/43

Eagle Ford Shale Meleiha/ Meleiha Deep/West Razzak Sakhalin-Ⅱ

Qatar LNG Marcellus Shale Libya Block Abu Dhabi LNG 113, 201 Oman LNG Tangguh LNG Equatorial Guinea LNG Oman Block 3, 4, 9, 27/NOGJV Tuna Kestrel

Gulf of Thailand Keta Moranbah North Merangin 1 South Walker Creek/Poitrel Thai/Block 10, 11, 12, 13, 10A, 11A, G4/48 NWS LNG German Creek/Lake Lindsay Thai/Block G4/43 Enfield/Vincent/ Laverda Meridian CBM Mozambique Area1 Dawson/Surat Basin Thai/Block 8/32&9A Cambodia Block A Wanaea/Cossack Kupe Vietnam/Block B ▲ Coal Tui ■ Natural Gas・LNG Vietnam/Block52/97 Yemen Block 7 Drayton ◆ Oil West Papuwa 1&3 Thai/Block 14A, 15A, 16A Bengalla Thai/Block B12/27 Casino/Henry/Netherby

7 Upstream Assets (Natural Gas/ LNG/ Oil)

End of March, 2012

Exploration Development Production

Bid Seismic Processing Drilling Valuation FEED FID Development Production

U.S.A: Marcellus Shale Russia: Sakhalin II LNG (Sakhalin Energy) Australia: Laverda*1 and 19 other permits (MEPUSA) *3 Australia: NWS LNG (JAL-MIMI), (MEPAU) Eagle Ford Shale Casino/Henry/Netherby, Meridian CBM (MEPAU) New Zealand: PEP50119 and 3 other permits (MEPTX) *3 New Zealand: Kupe (MEPAU) (MEPAU) Australia: Meridian CBM Thailand: Blocks 10.11.12.13.10A.11A.G4/48, Block B12/27, Papua New Guinea: PPL285 (MEPAU) (MEPAU) *3 Blocks 14A.15A.16A, Blocks 8/32&9A, Thailand: Blocks L10/43*2, L11/43*2 and 4 other Block G4/43 (MOECO) Natural permits (MOECO) Indonesia: Tangguh LNG (KG Berau/KG Wiriagar) Gas Vietnam: Blocks B, 52/97*1 (MOECO) U.S.A: Marcellus Shale (MEPUSA) LNG Cambodia: Block A (MOECO) Eagle Ford Shale (MEPTX) Indonesia: Merangin I, Tuna, Qatar: Qatargas 1 LNG (MILNED) West Papuwa I・III (MOECO) Qatargas 3 LNG (Mitsui Qatargas 3) Poland: Poland Shale (MEPPOL) Oman: NOGJV (MEPME) Oman: Block 3, 4*1 (MEPME) Oman LNG (MITLI) Egypt: Meleiha Deep (MEPME) Abu Dhabi: Abu Dhabi LNG (MITLI) Yemen: Block 7 (MEPME) Republic of Equatorial Guinea: Equatorial Guinea LNG (MITLI) Libya: Block 113, Block 201 (MOECO) Mozambique: Area1 (MEPMOZ) Ghana: Keta (MEPGK) U.S.A: Eagle Ford Shale Russia: Sakhalin II (Sakhalin Energy) (MEPTX) *3 Australia: Wanaea Cossack (JAL-MIMI), Enfield, Vincent (MEPAU) New Zealand: Tui (MEPAU) Thailand: Blocks 10.11.12.13.10A.11A.G4/48, Blocks 8/32&9A, Block G4/43 (MOECO) Oil Oman: Block 9, 27 (MEPME) Egypt: Meleiha/West Razzak (MEPME) U.S.A: Eagle Ford Shale (MEPTX)

*1 Proved undeveloped *2 Partly in development *3 Partly in production

8 Agenda

• Energy Segment in Mitsui

• Overview

• Strategy in each operating business field

• Topics

•Q&A

9 Business Environment ① (Outlook for primary energy demand) World Primary Energy Demand Outlook World Primary Energy Demand Outlook (Million Ton Oil Equivalent) Renewable Energy (Mtoe) 17.0 billion ton 4% BiomassHydro 12.1 billion ton 11% 3% Nuclear 1% 7% 10% 2% 6% 24% Coal 24% 27% Fossil Fuel 23% Gas Fossil Fuel 21% 74% 81%

33% 27% Oil

Source: IEA World Energy Outlook2011

• Based on the growth of population and economy in emerging countries such as China and India, the demand for primary energy continues to increase. • Fossil fuels continue to play a major role in primary energy. Demand for natural gas will increase drastically.

10 Business Environment ② (Outlook for LNG Demand-Supply) LNG Demand-Supply Outlook LNG Demand Outlook by regions (Base Case) 2011→2025 World Total Million Ton/year (Million Ton/year) 241 → 457 +216 500

Demand (High Case) 400 241 MT/year Demand (Base 19 → 36 10 → 20 Case) U.K. France 37 → 43 300 Korea Supply from the firm projects and the FID projects 6 → 3 12 → 66 U.S.A China 18 → 22 12 → 19 200 Spain 78 → 102 Taiwan Japan 11 → 12 Latin America Supply from the projects in 100 1 → 39 operation at present South East Asia

13 → 51 India 0 Americas Europe Asia

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 19→15 -4 65→112 +47 153→323 +170

Source: Demand Base Case－WoodMackenzie, Demand High Case－Our estimates Source: WoodMackenzie Supply－Partly our estimates based on WoodMackenzie’s outlook Widening geographical imbalance of natural gas demand-supply leads to increase in LNG demand

11 Strategies of Each Business Field

Environmental Biz. Upstream Trading & Marketing New Energy

• Contributing to stable profit and • Holding a balanced (regions, products, meeting needs of customers development phases, partners) and through stable supply and • Part of energy substantial asset portfolio and contributing demand-supply adjustment business portfolio to to Mitsui’s profit • Superior market intelligence

Vision complement fossil • Having advanced capabilities to improve • Marketing capabilities that fuel related asset value enable access to good quality business assets

• Optimize asset portfolio and accumulate • Seek regional and functional • Pursue emission good quality assets expansion based on existing trading • Strengthen partnership strategies business to strengthen • Evolution of business model marketing capabilities • Pursue participation  Pursue upside potential by participation • Continuous value improvement in biomass fuel business in projects during the early stages of petroleum refining and oil  Strengthen technical capabilities products sales business in • Pursue new (selection of assets; improvement of Japan technology for commercialization Key Strategies Key asset value; Mitsui’s presence in the • Evolution of business model of small to medium-  Respond to commoditization industry) sized gas fields  Participation in operation (E&P/coal; of LNG and coal (CNG, NGH, etc.) start from low risk projects)  Pursue new market in Asia

12 E&P Business

Business description · Developing a global portfolio by obtaining oil & gas upstream assets through core companies: Southeast Asia (MOECO), Oceania (MEPAU), Middle East (MEPME), North America (MEPUSA,MEPTX), Mozambique (MEPMOZ) · Investing in good quality assets, project management & implementation as a non-operator

MEPPOL Poland Shale Gas Marcellus Shale Libya/MOECO Eagle Ford Shale MEPUSA Egypt Oman Cambodia MEPTX MEPME Thai Ghana Vietnam MEPGK MOECO

Mozambique MEPMOZ Enfield MEPAU Vincent Meridian Tui/Kupe Oil / / Casino Henry Netherby Natural Gas

13 E&P Flow

Exploration Development Production

Bid Seismic Processing Drilling Valuation FEED FID Development Production

Implement investment after Obtain and analyze seismic data, exploration drilling in Maintaining production and commercialization planning. search for commercial oil and natural gas fields. Due to the increasing economic efficiency Due to the scale of limited chance of success, risk sharing among partners is by additional recovery, near-by investment, risk sharing common. exploration and development. among partners is common.

Operating and additional Business scale: US$ millions~10 millions Business scale: US$ 100 millions~billions development cost Cost of participation (Low → High) Risk of participation/Opportunity of participation (High→Low) · Opportunity to participate in a project at each stage (exploration, development, production). · Continuous cycle of exploration, development and production due to decline in reserve according to production. · Risk diversification achieved through a well-balanced portfolio (regions, products, development phases, partners).

2010 2011 Excluding Mozambique Including Mozambique Excluding Mozambique Including Mozambique Number of wells drilled 16Number 21 of wells drilled 33 35 Success rate of exploration 50%Success 52% rate of exploration 67% 69% Exploration cost per barrel $3.7Exploration $0.4 cost per barrel $1.7 $0.3

※The number of wells drilled includes near-by exploration in producing or already found on-shore/off-shore oil and gas fields, as wells as some exploration wells of partly appraisal nature. ※The exploration cost per barrel includes dry hole cost.

14 LNG Business

Business description · Since Mitsui participated in the Abu Dhabi LNG project in the 1970s, Mitsui has entered into the whole spectrum of the LNG value chain -production, transportation and marketing-. Mitsui has invested in 8 LNG projects, all of them are in production with efficient management and stable operation. · Discovery of a world-class natural gas reserve off the coast of Mozambique. Studies in progress for development as a new LNG project. Qatar Gas 1

7.5％, 9.6 MT/year Montoir Sakhalin-II Qatar Gas 3 12.5％, 9.6 MT/year 1.5％, 7.8 MT/year Cameron

45 Million bbl/year 4 MT/year Abu Dhabi (FY 2011) (Planned)

15％, 5.6 MT/year Equatorial Guinea

8.5％, 3.4 MT/year Oman Tangguh

2.8％, 7.1 MT/year 2.3％, 7.6 MT/year Mozambique Oil Production 20％, 10 MT/year NWS (Planned) 8.3％, 16 MT/year LNG Projects

1.1 Million bbl/year LNG Projects (Planned) (FY 2011) LNG Terminal (use rights)

15 Gas Value Chain

Exploration Power Generation & Distribution & Production LNG Gas Chemical Liquefaction Transportation Receiving Terminal

Gas Power Generation Blocks in ■ ■Qatargas/1 vessel ■Manzanillo/Mexico ■Malhas PL/Brazil Sakhalin-II/Russia ■ MT Falcon,Valladolid/ ■Australia ■ADGAS/Abu-Dabi ■RasgasⅡ･Ⅲ ■Montoir/France ● Blue Stream ■New Zealand /9 vessels (Capacity Usage) /Russia Mexico ■Qatargas1&3/Qatar ■ ■Thailand ■Snohvit/2 vessels ● Cabiunas/Brazil Saltend/UK ■Oman & Qalhat LNG ■ ■Cambodia ■CPC/4 vessels ■Mitsui Gas (LDC)/ Eco Electrica/ /Oman Puerto Rico ■Vietnam ■ ■Angola LNG Brazil NWS/Australia ■Ontario/Canada ■Indonesia ■Equatorial Guinea /4 vessels ■Oman ■Tangguh/Indonesia ■Kyushu Electric Power Gas Chemical ■UAE /1 vessel ■International Methanol ■Qatar ■Spot LNG fleet Company/Saudi Arabia ■Russia /4 vessels ■Kaltim Pasifik Amoniak/ ■Libya (total 25 vessels) Indonesia ■Mozambique ■ Equity Investment Project ■Poland (or tanker owned by Mitsui) ■USA (Shale) ● EPC/finance ■Canada, etc · Mitsui participates in the whole spectrum of the ‘LNG value chain’. · Mitsui plays the role of LNG project organizer.

16 Oil & Natural Gas E&P/LNG business key strategies

• Optimize asset portfolio (regions, products, development phases, partners) and accumulate good quality assets • Strengthen partnership strategies • Evolution of business model (participation in projects during the early stages, strengthening technical capabilities, participation in operation.

Oil & Natural Gas E&P ✓ Strengthen earning base in focus regions (Southeast Asia, Australia, Middle East, U.S.) ✓ Develop business in new region ✓ Pursue exploration opportunities ✓ Obtain producing assets to contribute to reserve, production, profit ✓ Improve technical capabilities and global management organization

LNG business ✓ Strengthen capabilities that lead to gas commercialization of asset value enhancement ✓ Concentrate on Mozambique and Browse project, and expansion of the existing assets ✓ Take full advantage of Mitsui’s ability to make comprehensive proposals to frontier resource-rich countries (infrastructure, finance, education, agriculture, etc.)

Production Image

17 Coal Business

Business Domain · Coal mine development and production in Australia with mining majors (Anglo, BHP, Rio Tinto) · Feasibility study to develop the undeveloped mines ※Production capacity Lancewood, Nebo West, Bee Creek, etc. (20%) Undeveloped South Walker Creek (20%) 3.5 MT/year Poitrel (20%) 3.0 MT/year Wards Well (20%) Undeveloped

Kestrel (20%) 4.0 MT/year Bengalla (10%) 7.0 MT/year

Abbot Point Moranbah North (4.75%) ◆ 4.0 MT/year ◆ DBCT/Hay Point German Creek (30%) 6.0 MT/year

◆ Gladstone Lake Lindsay (30%) 4.0 MT/year

Dawson (49%) 12.7 MT/year Theodore South (49%) Undeveloped ◆Newcastle Drayton (3.83%) 5.5 MT/year Drayton South (3.83%) Undeveloped

Collingwood (49%) Undeveloped Ownaview (49%) Undeveloped Taroom (49%) Undeveloped Woori (49%) Undeveloped

18 Coal Business

Key strategies to achieve the vision · Expansion of existing assets (Kestrel, Bengalla, etc.) · Commencement of production of undeveloped coal mines (Wards Well, Theodore South, etc.) · Pursue new regions · Develop and strengthen relationship with new partners · Strengthen technical capabilities of Mitsui Coal Holdings

Plans for undeveloped mines Production Image FID (planned) Production Start (planned) Production capacity Wards Well 2013 2017 5.5 MT/ year Theodore South 2015 2017 5-10 MT/ year Drayton South 2013 2015 5 MT/ year Collingwood 2013 2015 4.2 MT/ year

Expansion Plans

Expansion (planned) production capacity Kestrel 2013 4.0→6.5 MT/ year Bengalla 2012 7.0→9.3 MT/ year

19 Oil Trading & Marketing Business

Key strategies to achieve the vision  Enhance global trading through METS  Strengthen marketing capabilities in China, India, Southeast Asia  Sourcing of heavy fuel oil from U.S.A by Westport Petroleum  Expand global business by using KPI, Mitsui’s blending facility, tank barge  Maximize corporate value of Mitsui Oil Co. and KPI (domestic refinery, sales)

Mitsui Oil Co.

Petroleum Products Crude Oil Crude Oil, Low Sulfur Heavy Oil (Domestic) Westport Petroleum Kyokuto Petroleum Industry (KPI)

Crude Oil

Light Oil Low Sulfur Heavy Oil Base Material High Sulfur/Bunker Heavy Oil Mitsui Energy Trading Singapore (METS)

Low Sulfur Heavy Oil Base Material High Sulfur/Bunker Heavy Oil Export volume of heavy oil from U.S.A to Asia Crude Oil

20 Gas/LNG Trading & Marketing Business

Key strategies to achieve the vision

Strengthen gas/LNG marketing capabilities to the global market • Enhancement of LNG procurement, transportation and marketing Norway • Enhancement of gas marketing capabilities in the U.S. by MMGS ⇒ Enable access to new upstream interest by strengthening LNG/Gas marketing

Montoir Korea Sakhalin II LNG MMGS Gas Sales in U.S. Domestic China Japan Market Algeria Egypt Taiwan Cameron LNG Nigeria ADGAS LNG Oman LNG India Qatargas1 LNG Qatargas3 LNG Trinidad & Tobago Tangguh LNG Equatorial Guinea LNG Mitsui’s participating North West Shelf LNG LNG Projects Mitsui LNG spot Mozambique LNG trading Term SPOT

21 Other Energy Business

Part of our energy business portfolio to complement fossil fuel related business

Nuclear fuel/Key strategies

· Pursue stable nuclear fuel supply on a long-term basis, maintain nuclear fuel recycle, and study participation in uranium mine business

Environment & New Energy/Key strategies · Pursue emission reductions business continuously and respond to the new framework · Pursue participation in biomass fuel business continuously · Select promising new energy (new generation biomass energy, hydrogen, etc.) and conduct study for commercialization · Pursue new technology for commercialization of small to medium-sized gas fields (CNG, NGH, etc.)

22 Energy Segment Gross Asset (By business domain)

· Strategic accumulation of assets · Maintain high investment efficiency through asset recycling

ROA （Trillion yen） Gross asset 3.0 15.0% Others ROA (Excluding settlement 2.5 of Gulf of Mexico oil spill) Oil traiding 2.0 10.0%

Coal 1.5

1.0 5.0% LNG

0.5 E&P 0.0 0.0% FYE 3/10 FYE 3/11 FYE 3/12 FYE 3/17 FYE 3/20

Increase in Assets Increase in Assets • Investment in shale projects • Investment in shale projects • Investment in MOECO offshore Thailand project • Investment in MOECO offshore Thailand project • Investment in coal mines by MCH • Increase in current asset due to increase in oil price (Production of existing coal mines, expansion of Kestrel) and trading volume • Increase in current assets due to increase in oil price and Decrease in Assets trading volume • Depreciation Decrease in Assets • Reclassification of Mitsui Marubeni Liquefied Gas • Depreciation Co., Ltd. from a subsidiary to an associated • Sakhalin II capital redemption company. • Divestiture of listed securities • Sakhalin II capital redemption

23 Agenda

• Energy Segment in Mitsui

• Overview

• Strategy in each operating business field

• Topics

•Q&A

24 U.S. Shale Business & Export Base We expect US natural gas prices to increase due to demand-supply balance in the medium to long term Importance of obtaining large-scale resources with long term competitiveness Marcellus

MMGS Pursue own Marcellus gas marketing

Production (peak) : 360～460mmcfd (60~77thousand BOE/D) Eagle Ford (2018～2020, net to MEPUSA)

Obtained lease (Eagle Ford Shale + Pearsall Shale) Obtained lease (Pearsall Shale only) Project area Eagle Ford Cameron Base Mitsui’s usage rights of liquefaction facility: 4 MT/year Production Start: 2016/2017

Pursue LNG Export for favorable terms Production (peak):20 thousand B/D (2017, net to MEPTX)

25 Mozambique Area1 Project/Overview

Project Partner · Block: Rovuma Basin Offshore Area 1, Republic of Mozambique Area Map (Area: 10,565 km2) · Water Depth: 0～2,000 m · Equity holders: Anadarko (Operator) 36.5% Mitsui E&P Mozambique 20.0% ENH (NOC) 15.0% Bharat (India) 10.0% Videocon (India) 10.0% Cove Energy (U.K.) 8.5% Project Status Commercialization of discovered gas · Recoverable Natural Gas Resources: 30～60+TCF Prosperidade+Golfinho + Atum (announced by Anadarko) · Liquefaction Scale: 5 MT×2 Trains (Phase 1) ⇒ Possible expansion up to 6 trains · FID: End 2013 (Planned) Production Start: 2018 (Planned)

Search for additional oil & natural gas resources · Drilled 9 deep water wells since 2010 and found gas in 7 wells. · Expectation of further vast oil & gas resources within unexplored areas of the block (southern part, northern part). Accelerate Source: Anadarko Petroleum corp. exploration targeting resource accumulation.

26 Mozambique Area1 Project/ Schedule

· Completed Pre-FEED work. Now in process of selecting FEED contractors. · FID is scheduled for the end of 2013. Production is scheduled to start in 2018.

Source: Anadarko Petroleum corp.

27 Agenda

• Energy Segment in Mitsui

• Overview

• Strategy in each operating business field

• Topics

•Q&A

28 ＝END＝

29