Integrated Transportation Systems Business Unit July 10th, 2015 Mitsui & Co., Ltd. 1 Contents 1. Overview 2. Mobility 3. Repositioning 4. Business Strategy 5. Keywords for the Future 2 1.Overview COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 3 Numbers Tell Our Business Unit Number of Employees Number of Subsidiaries Total Assets & Net Income (Consolidated) (Equity Accounted Investees) 1 1 150 3 companies 10 of total of total COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 1. Overview 4 Organization Structure Iron & Steel Products Business Unit COO Mineral & Metal Resources Business Unit Infrastructure Projects Business Unit Deputy COO Integrated Transportation Systems Business Unit COO staffs Basic Chemicals Business Unit Strategic Planning Dept. CEO Performance Chemicals Business Unit Unit Business Americas Business Unit EMEA Business Unit Pacific Asia Human Resources & General Affairs Dept. Innovative Business Evolution Dept. Energy Business Unit I Energy Business Unit II 8 Food Resources Business Unit Business Divisions Food Products & Services Business Unit First Motor Vehicles Div. Ship Business Div. Consumer Service Business Unit IT & Communication Business Unit Second Motor Vehicles Div. Marine Enterprise Div. Corporate Development Business Unit Aerospace Systems & Third Motor Vehicles Div. Rail Leasing Div. Corporate Staff Divisions Construction and Transportation Project Div. 13 business units + ３regional headquarters Industrial Machinery Div. COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 1. Overview 5 Business Domains Shipping 5 Construction Sale & purchase of newly- and Industrial Aerospace Business built ships, ship owning, Machinery Domains and finance. Brokering of chartering and sale & Motor Shipping Railway purchase of secondhand Vehicles ships. Sale of marine equipment. Ship management/technical services. Motor Vehicles Aerospace Motor vehicle/motorcycle assembly and production; Aircraft leasing; aircraft parts import and export; engine development freight business for parts, investment, leasing and etc. used in motor vehicle sales; import and sales of production; wholesale helicopters agency business; retail sales business; financing business; truck leasing and rental business Construction and Industrial Machinery Railway Export/sales/servicing Rolling stock and freight business for industrial car leasing business; equipment including railway infrastructure mining/construction project; freight railway machinery, manufacturing transportation business; equipment, and machine passenger railway tools; leasing business concession business COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 1. Overview 6 Global Network Business Locations Affiliates Consolidated Employees Approx. Approx. Approx. 17,000 40 locations 150 companies Staff AMY, AMT Russia M&T Aviation Finance (May, 2015) Willis Mitsui & Co Engine Support M&B Conversions Komek Machinery Transfreight Automotive Logistics Europe Toyota Canada Mitsui Rail Capital Europe Android Industries Penske Automotive Group MRC1520 Sollers-Bussan M&Y Techmat Hino Motors Sales Kobe Aluminum Automotive Product Transfreight China Logistics Penske Truck Leasing Hino Motors Sales USA Kobe Aluminum Automotive Product (China) Mitsui Rail Capital Hino Motors Sales Mexico Ellison Technologies Kuotu Motors Mingalar Motor Road Machinery Toyota Motor Manufacturing Turkey Taiwan High Speed Rail Toyota Motor Philippines Hino Motors Manufacturing Mexico India Yamaha Motor Toyota Manila Bay Corporation／Toyota Cubao/LEXUS Manila Lao Toyota Service Automotores Toyota Colombia Hino Motors Manufacturing Colombia Global United OMC Shipping Bussan Auto Finance Komatsu-Mitsui Maquinarias Peru Transystem Logistics Intʼl Toyota del Peru Yamaha Indonesia Motor Manufacturing VLI Mitsui Auto Finance Peru Bussan Auto Finance India Daihatsu Malaysia / Perodua Auto Corporation MRCLA Mitsui Automotriz Odebrehct Mobilidade Mitsui Automotive Thailand SP Line4 Hino Motors Sales (Thailand) National Plant and Equipment Toyota Chile Veloce Logistica Hino Motors Manufacturing (Thailand) Komatsu Marketing Support Australia Mitsui Motion Maquinas BAF (Thailand) Mitsui Auto Finance Chile COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 1. Overview 7 Activities in Recent Years – News Releases Y2013 Sep. Mitsui to participate in Integrated Logistics Business in Brazil Dec. Allocation of new shares by PT. Bussan Auto Finance Y2014 Apr. Mitsui to Participate in Farm Machinery Manufacturing and Distribution Business in India May. Establishment of Automobile Service Workshop in Myanmar Sep. Conclusion of Time Charter Parties for LNG ships for Cameron LNG Export Project in the U.S.A. Nov. Mitsui to participate in Passenger Railway Transportation Business in Brazil Y2015 Jan. Conclusion of Time Charter Parties for LNG ships for Cameron LNG Export Project in the U.S.A. Mar. Mitsui invests in North America-based Penske Truck Leasing Co., L.P. Mar. Mitsui Reaches an Agreement regarding the acquisition of Transfreight North America by Penske Logistics Mar. Railcar Leasing Business in North America Apr. Mitsui to Reinforce Mining-machine Sales and Service Company in Mexico Apr. Mitsui, Toyo, KOBELCO and IKPT enter into Contract for Integrated Railway Systems and Trackwork for North-South Line of Jakarta Mass Rapid Transit System in Indonesia May. Conclusion of Time Charter Parties for LNG ships for Cameron LNG Export Project in the U.S.A. COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 1. Overview 8 Scale of Business Net Income 1,400 Total Assets 1,179.1 (bil. yen) (bil. yen) 1,200 982.1 40 1,000 30.2 30 800 600 20 12.4 400 10 200 0 0 2014-Mar 2015-Mar 2014-Mar 2015-Mar Investments & Loans Number of Employees -Parent company- -Parent company- 400 (bil. yen) 305.7 600 530 534 300 400 200 166.1 200 100 0 0 2014-Mar 2015-Mar 2014-Mar 2015-Mar COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 1. Overview 9 Net Income by Business Domain (Mar/2015) （excluding parent company, businesses with net income/loss of ¥300mil or more） Businesses with net income of ¥1bil or more （17 companies） Motor Vehicles Construction & Industrial Machinery Shipping Aerospace Railway ※businesses with net income/loss of ¥300mil or more COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 10 2.Mobility -a Key Strategic Domain- COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 2. Mobility 11 Mobility is one of “Key Strategic Domains” founded on Mitsuiʼs strength -Create new value through effective collaboration among business in Key Strategic Domains- COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 2. Mobility 12 -Connection with a wide range of industries and growth potential- Supply of Transportation Systems (automobile, ships, aircraft, railcars, etc.) Food Resources/Products Chemicals Resources Steel Products Energy Passenger Finance & Lease （Multigrain） （Vale) (Shipyards） (LNG) Transportation Supply of mining equipment and • Contribution to global logistics in a wide agricultural machinery range of industries • Sharing information related to clients and markets with other business units at Mitsui. Leveraging comprehensive capabilities of Mitsui. • Contribution to resource development and agricultural sectors. COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 13 3.Repositioning -Transition from “Seller Side” to “Buyer Side” and/or “User Side”- COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 3. Repositioning 14 Automobile Domain-Development of business models over the decades 1988〜 Export & dealership 1995~ Broaden and business Automobile (maker captive) production and 2001~ deepen logistics business of production Automobile sales 2015~ business parts finance business Multi-brand retail activities business Truck lease (PAG) & rental business (PTL) Export & dealership business: Export completed cars from Japan, dealership and distributorship business out of Japan based on commercial rights with specific auto-makers(maker captive business) Automobile production business:Equity participation in automobile production businesses (Turkey, Philippines, India, Indonesia, Malaysia) Logistics business of ： Transportation of production parts for automakers（USA, Canada, Mexico, India, China, Europe） Sales finance business： Motorbike and passenger cars for retail (Indonesia, Thai, India, Chile, Peru) Multi-brand retail business: PAG (Penske Automotive Group) Truck lease and rental business: PTL (Penske Truck Leasing) - merged logistics businesses in North America COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 15 3. Repositioning (Automobile Domain) Truck Leasing Business in North America ‐ Penske Truck Leasing (PTL)‐ Mitsui’s equity participation of 20% ‐ U.S. market is expected to have sustainable population growth and incremental cargo transportation needs, Mitsui to take up this opportunity and work on optimization of customer needs. PTL Service Offerings Full- Vehicles customized to customer needs. Service PTL Network in North America Preventive and full maintenance by utilizing 700 Leasing North American locations Contract Maintenance for customer-owned equipment Maintenance Have potential to future leasing contracts Truck Rental Short-term rental for corporation & individual Dedicated Contract Carriage Logistics Distribution Center Management Transportation Management COPYRIGHT © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 3. Repositioning 16 Rail Domain-Development of business models over the decades 1980s 1990s 2000s Acceleration of privatization High competitiveness of Rise of emerging economies