MITSUI & CO., LTD. AnnualMITSUI & CO., LTD. Report 2012 MITSUI & CO., LTD. Annual Report 2012 Year ended March 2012 Printed in Japan Contents 002 Mitsui’s History 004 Overview of Results for the Year Ended March 31, 2012 006 Operations that Realize Synergies across Product Lines 008 Message from the CEO: To All of Our Stakeholders President and CEO Masami Iijima provides an overview and explains the goals of the new Medium-term Management Plan “Challenge and Innovation 2014,” as well as Mitsui’s commitment to “high-quality work” and “high-quality profit,” and discusses Mitsui’s spirit of challenge with the aim of being a leading global business enabler. 018 Message from the CFO Chief Financial Officer Joji Okada discusses the investment and loan plan contained in the new Medium-term Management Plan and Mitsui’s financial strategy in light of current financial conditions, as well as the introduction of International Financial Reporting Standards (IFRS). 021 New Medium-term Management Plan Special Feature CHALLENGE AND INNOVATION 2014 We have compiled an overview of the new Medium-term Management Plan “Challenge and Innovation 2014” that was formulated to guide us on our quest to realize Mitsui’s “Long-term Management Vision—Dynamic Evolution as a 21st Century Global Business Enabler” announced in March 2009. Projects 026 01 ‌ Energy Segment 027 02 ‌ Lifestyle Segment 028 03 ‌ Chemicals Segment ©Anadarko Petroleum Corporation A Cautionary Note on Forward-Looking Statements This Annual Report contains statements (including figures) regarding Mitsui & Co., Ltd. (“Mitsui,” “Mitsui & Co.,” “Company” )’s corporate strategies, objectives and views of future developments that are forward-looking in nature and are not 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, but are not limited to: (i) changes in economic conditions that may lead to unforeseen developments in markets for products handled by Mitsui, (ii) fluc- tuations in currency exchange rates that may cause unexpected deterioration in the value of transactions, (iii) adverse political developments that may create unavoidable delays or postponement of transactions and projects, (iv) changes in laws, 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. 030 Iron & Steel Products Segment 062 ‌Overseas: Americas Segment 033 Mineral & Metal Resources Segment Europe, the Middle East and Africa Segment 036 Machinery & Infrastructure Segment Asia Pacific Segment 042 Chemicals Segment 066 Major Subsidiaries and Associated Companies 047 Energy Segment 051 Lifestyle Segment 057 Innovation & Cross Function Segment 071 Corporate Governance and Internal Controls Mitsui strives to maintain a structure that increases the efficiency of management execution and strengthens the oversight function, with an emphasis on enhancing transparency and accountability and on clearly separating the functions of management oversight and execution. Mitsui’s governance structure is explained through the Message from the Board of Corporate Auditors and Interview with the Chief Compliance Officer. 077 ‌Interview with 079 Mitsui’s CSR the Chief Compliance Officer Mitsui fulfills its CSR by creating value through its core businesses and delivering Yoi-Shigoto (good quality work) to contribute to the establishment of a sustainable society. This section outlines our social responsibilities and specific activities to address those responsibilities. 094 Directors and Corporate Auditors 095 Independent Directors / Auditors 097 Consolidated Financial Statements 102 Ten-Year Summary of Consolidated Financial Statements 104 Corporate Information 105 Investor Information The status of the Company’s inclusion in the SRI Index Socially responsible investment (SRI) involves the selection of investment targets through the evaluation of corporations based on financial analyses and investment standards, as well as on how well they fulfill their social and environmental responsibilities. Mitsui has been selected for inclusion in two global SRI indexes—the FTSE4Good Global Index and the Dow Jones Sustainability World Index (DJSI World). Editorial Policy Mitsui issues its Annual Report as a comprehensive report to convey messages from management, to report on management strategies, key initiatives, and business overviews, and to explain its activities in the area of corporate social responsibility (CSR) to all stakeholders. We hope this report will help explain the sustainable growth potential of our business activities, which are carried out with firm resolve and in the spirit of “Challenge and Innovation.” Please refer to our Annual Securities Report for more detailed financial information about Mitsui. Detailed Reports Issued by Mitsui Financial Information Annual Securities Report The Annual Securities Report is prepared pursuant to Article 24, Section 1 of the Financial Instruments and Exchange Act and is required to be submitted to the Kanto Finance Bureau. Please refer to these reports for more detailed financial information. It is issued in late June of each year. Download from http://www.mitsui.com/jp/en/ir/library/securities/ CSR-related Information Sustainability Full Report “Mitsui’s CSR” of the Annual Report outlines the Company’s business activities and activities directed toward its corporate social responsibility. The Sustainability Full Report provides a comprehensive update on our latest activities and is issued in August of each year. Website http://www.mitsui.com/jp/en/csr/ Download from http://www.mitsui.com/jp/en/csr/csrreport/ Mineral & Metal Resources and Energy-related Information Production & Reserve Report This detailed document provides an overview of our mineral & metal resources and energy businesses, including MITSUI & CO., LTD. Production & Reserve Report production volumes and reserves, and contains supplemental information related to supply and demand. Year ended March 2011 The Production & Reserve Report is issued in September of each year. Contents Mining Activities (1) Locations and Brief Description (2) Business Overview 1. Description of mines 2. Production tonnage Download from http://www.mitsui.com/jp/en/ir/library/supplementation/ 3. Reserve tonnage 4. Equity production tonnage and reserves through associated company (3) Supplemental Information Oil & Gas Producing Activities (1) Locations and Brief Description (2) Business Overview 1. Present activities 2. Proved reserves 3. Production 4. Average sales prices and average production costs (3) Supplemental Information PRODUCTION & RESERVE REPORT 2 Corporate Brochure The corporate brochure provides an easy-to-understand overview of Mitsui and our businesses and is issued around August of each year in eight languages.* * Japanese, English, Chinese, Spanish, Russian, French, Arabic, and Portuguese e-book http://www.mitsui.com/jp/en/company/ebook/brochure_main/ Download from http://www.mitsui.com/jp/en/company/brochure/ ABOUT US ABOUT US About Us Overview of Mitsui “Avoid infatuation with immediate advantage. For enduring prosperity, harbor grand aspirations.” Takashi Masuda First president of the former Mitsui & Co.* The words of Takashi Masuda continue to represent a clear and valid starting point in any age and are regardless of changes in the global economy. As the industrial structure of Japan and the world has changed over time, the role sought of Mitsui continues to change as well; however, the three core principles of “Challenge and Innovation,” “Focus on Human Resources” and “Open-Mindedness” continue to be the foundation on which we base our activities. * Legally speaking, there has been no continuation between the former Mitsui & Co. and the current Mitsui & Co. ANNUAL REPORT 2012 001 ABOUT US Mitsui’s History For more than 130 years, we have constantly reevaluated our own role and function in addressing the needs of the times and continuously and flexibly promoted the evolution of new business models. The period starting from 1876 The period from the 1960s to the 1970s Japan’s first general trading company (sogo shosha)— A driving force for high economic growth contributed to the modernization of the Japanese economy ‌In view of Japan’s high dependence on overseas sources of raw In 1876, the former Mitsui & Co.* was established as Japan’s first materials, Mitsui invested in the development of its own sources general trading company (sogo shosha). of raw materials and energy fuels with the aim of ensuring a sta- ble supply of key materials to Japan. ‌Evolved from a governmental agency to a commercially independent In 1963, participated in the development trading company of the Moura coal mine in Australia (currently the Dawson coal mine) • ‌Exported rice as well as coal from the government-owned Miike coal mine In 1965, participated in the Robe River iron ore development in Australia The Abu Dhabi LNG project • Shifted from acting as a Takashi Masuda, the first governmental