Business Model for Growth That Balances Between Trading And

Business Model for Growth That Balances Between Trading And

BusinessModelforGrowthThatBalances betweenTradingandBusinessManagement Through our original business of trading, Mitsui has cultivated expansive networks comprising a wide range of clients and has leveraged these networks to carry out business investments. Mitsui gets involved in the management of the projects in which we have invested in an effort to enhance their value. In turn, these projects help Mitsui further promote our trading business and expand our networks. Through the repetition of this cycle, Mitsui has developed our current business structure. Our diverse pool of talented professionals work to combine the sophisticated product expertise that each business unit possesses with our regional expertise, which is supported by local employees who are active in regions around the world, and various functional expertise as a general trading company. In this way, these professionals are leveraging our long-cultivated client base and networks to create new business models and pursue new projects. Unwavering Value Creation and Profit Growth Diverse pool of talented professionals Client base and business partner relationships Business management Trading Sustainable profit growth Business development Functional Product Regional expertise* expertise expertise *Marketing,Logistics,Finance,Riskmanagement,Digitaltransformation The Diverse Range of Products That General Trading Companies Handle Asageneraltradingcompany,Mitsui’sbread-and-butterbusinesshasalwaysbeentrading.Toleveragethesuperiortrading functionsthatwepossesstothefull,Mitsuihasnaturallyformedabusinessstructureforhandlinganextensivelineupof productsthroughawidevarietyofoutlets.Ourtraditionalcorecompetencieshavebeentradingactivitiesthatlinkproduct demandwithproductsupplyandtheextensivenetworkofclientswehaveacquiredthroughthesetradingactivities. Additionally,thesecompetencieshaveincludedthejudgmentcapabilities,keenawareness,andappropriateconductofour employees,whohavehelpedusmaintainandexpandournetwork. Pleasesee“Mitsui’sContinuingEvolutionbyMeetingtheChangingNeedsoftheTimes”onpages096and097. ◦Daily necessities ◦ Iron ore ◦ Iron and steel products ◦ Machinery ◦ Chemicals ◦ Automotive and motorcycles ◦ Natural gas ◦ 1950s 2000s MITSUI & CO., LTD. Integrated Report 2018 1 2 3 4 5 Truck Leasing and Rental Business CASE The Cameron LNG Project in the U.S. CASE and Logistics Business in the U.S. In2013,MitsuiinvestedintheCameronLNGProject, Mitsuihaslongbeeninvolvedinoverseastrading,mainly whichislocatedjustnorthoftheGulfofMexicointheU.S. inSoutheastAsiaandtheAmericas,engagedinautomotive stateofLouisiana.Forthisproject,liquefactionfacilities manufacturingandassembly,distribution,andretail arecurrentlyunderconstructionaimingforproduction businesses.IntheU.S.,wehaveformedatrust-based commencementofthreeLNGproductiontrainswithin relationshipwiththePenskeAutomotiveGroup,which 2019.WehavesecuredanannualLNGtollingcapacityof operatesautomotiveandcommercialdealerships,through fourmilliontons,spanningover20years.Afterproduction ourinvestmentinthemin2001.Thistrust-basedrelation- begins,theCameronLNGProjectwillutilizesevenofour shipprovideduswithanopportunitytoinvestinPenske LNGvesselstosellLNGonaglobalbasis.Naturalgasand TruckLeasingCo.,L.P.(PTL)in2015,whichoperatesunder LNGproducerelativelyloweramountsofgreenhousegas theumbrellaofthePenskeAutomotiveGroup.PTLisoneof emissionsandareexpectedtoincreaseinglobaldemand thelargesttruckleasingcompaniesinNorthAmericaand overthemediumtolongterm.Wealreadyownupstream primarilyengagesinfull-servicetruckleasing,contract shaleinterestsinprojectsthatcontributetonaturalgas maintenance,andcommercial/consumertruckrental productionintheU.S.ThroughtheCameronLNGProject, businesses.Inaddition,PTLoperatesalogisticsbusiness wewillcontributetothestableproductionofLNGaswell thatmainlyservesNorthAmerica.Mitsuiseekstofullytake asastableenergysupplyforJapanandtherestoftheworld. advantageofitsdiversebusinessfootprintandbecomethe solutionprovideroffleetmanagementandsupplychain efficiencyviaPTL’svastcapacitiestoourbusinesspartners andaffiliates. Trading Business management Trading Business management Development Leasing LNG and Automotive and rentals production Changes in Mitsui’s Business Portfolio (Total Assets) 1. Expansion in business management beginning with trade ¥trillion Non-currentassets Currentassets 2. Increase in non-current assets due to business 2.8 1991 7.0 management expansion 3.2 2005 4.4 3. Maintenance of current asset scale in response 7.1 2018 4.2 to new trade brought about by business management Non-currentassets Non-currentassets Non-currentassets 29% 42% 63% ¥2.8 trillion ¥3.2 trillion ¥7.1 trillion ¥9.8 trillion ¥7.6 trillion ¥11.3 trillion Fiscalyear Fiscalyear Fiscalyear endedMarch endedMarch endedMarch 1991 2005 2018 Currentassets Currentassets Currentassets 71% 58% 37% ¥7.0 trillion ¥4.4 trillion ¥4.2 trillion MITSUI & CO., LTD. Integrated Report 2018 .

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