BUSINESS SERVICE GROUP The Business Service Group coordinates MC’s companywide from upstream to downstream, including consulting and IT strategies, covering everything from individual business system and IT infrastructure integration. Our comprehensive strategies to planning, development, and administration. services help to continuously raise the enterprise value of MC As the business climate trends toward diversity and Group companies and client companies, reform administrative globalization, and digital technology advances, the procedures, and develop operations. Furthermore, by importance of IT in corporate activity grows. There are now introducing and enhancing the most advanced and optimal greater demands to more effectively use IT as a tool for IT functions to respond to the enormous changes in IT needs, business expansion. we contribute to business expansion by boosting companies’ The Business Service Group provides integrated IT services competitive strength. BUSINESS SERVICE GROUP BUSINESS In order to help solve issues faced by MC Group companies and client companies, improve business processes and raise corporate value, the IT Service Business Division provides integrated IT services ranging from consulting to system development and operation, and IT outsourcing. We provide these services through business investments, or with the cooperation of business partners. We also work to expand and strengthen new IT-related businesses by supporting the introduction and deployment of advanced information technologies and uses for such technologies. IT Service Business ◦ Promotion of SI business and IT outsourcing business Division ◦ Promotion of consulting business and BPO business ◦ Support for businesses through advanced technologies and prior application experience ◦ Promotion of IT support and application for business investments both overseas (automobile business, Asian market, retail business) and Japan. ◦ Promotion of collaboration and partnership with Tata Consultancy Services Limited (TCS) New Joint Venture Company Established with TCS New, State-of-the-Art Data Center Opened MC and Tata Consultancy Services (TCS) teamed up to establish In October 2013, MC opened a new data center in the Mitaka Tata Consultancy Services Japan, which began operations on area of metropolitan Tokyo. The center is equipped with the latest July 1, 2014. The new company was created by merging MC’s technologies, including seismic dampening devices and the first wholly-owned IT Frontier Corporation (ITF), Tata Consultancy municipal-use, fully outdoor air cooling system. Having already Services Japan (the Japanese arm of TCS), and Nippon TCS provided its customers with high-quality data center services for about Solution Center Limited (NTSC), an existing MC-TCS joint 30 years now, MC is keen to build on that track record with high value- venture. TCS, which is India’s largest, global IT services provider, added services that give due consideration to environmental concerns, owns 51% of the new company, with MC owning the remaining protect client data from disasters, and offer enhanced security. 49%. Leveraging the customer relations expertise of both MC and its former subsidiary ITF, along with their knowledge of the Japanese market, the joint venture will offer its clients the same competitively-priced IT services that TCS has been developing around the world. It will also provide quick and efficient IT solutions to Japanese enterprises that are moving into overseas markets and support those launching new overseas businesses. IT Planning Department The IT Planning Dept. is responsible for MC’s companywide IT measures such as IT systems and infrastructure, covering strategies and planning, as well as investments and cost management. The business needs of the MC Group are becoming increasingly diverse and more globalized, and IT technology is forever advancing. Always quickly responding to these changes, the IT Planning Dept. not only deploys MC’s companywide IT measures on a consolidated basis, but also proposes and promotes IT internal control and information security measures. ORGANIZATIONAL STRUCTURE: 1 Development Division (2 Departments) /1 Department Business Service Group CEO Office ■ IT Service Business Division IT Service Business Planning Department, IT Service Business Development Department IT Planning Department 11 GLOBAL ENVIRONMENTAL & INFRASTRUCTURE BUSINESS GROUP The Global Environment & Infrastructure Business Development energy, such as renewable energy. We are also involved in Group, which was established as a group directly under manufacture of lithium-ion batteries, an essential component the president, was reorganized into a business group on for today’s environmentally friendly vehicles and electricity July 1, 2013, when it became the Global Environmental & storage. Infrastructure Business Group composed of three divisions: Our aims are to foster the growth of stable, long-term Environmental Business Division, New Energy & Power earnings drivers and raise our corporate value, while at the Generation Division, Infrastructure Business Division. same time working towards the realization of a sustainable This group mainly handles trade and related business society, with full consideration for the natural environment. operations in power generation, water, transportation, and Ours is a long-term approach, and we remain committed to other necessary infrastructure that have a direct impact on our developing mechanisms, technologies, and systems in business quality of life. We are active in a number of areas that help fields that have high growth potential and that will enable to combat global warming and secure sustainable supplies of more people to live on fewer resources. GLOBAL ENVIRONMENTAL & INFRASTRUCTURE BUSINESS GROUP BUSINESS ◦ Lithium-Ion Batteries Environmental ◦ Neodymium Magnets Business Division ◦ New Environmental Business Development and Management MC, Robert Bosch and GS Yuasa set up a joint venture “Lithium Energy and Power GmbH & Co. KG” in Stuttgart, Germany in November 2013. The joint venture focuses on marketing of automotive batteries and development of next-generation lithium-ion battery technology. ◦ Power Generation in Japan and Overseas ◦ Onsite (Inside-the-Fence) Power Generation New Energy ◦ Overseas Power Transmission & Power ◦ Export of Power Generation and Transmission Generation Equipment Division ◦ ESCO* Operations ◦ District Heat Supply *ESCO: Energy Service Company MC has a 20% investment in Star Energy Geothermal Pte Ltd. that owns the 230 MW Wayang Windu Geothermal Power Plant in Indonesia, one of the world’s largest geothermal power plants. ◦ Water Business ◦ Railway, Harbor, and Airport Operations Infrastructure ◦ Petroleum, Gas, and Petrochemical Business Division Equipment, FPSO Chartering ◦ Steel, Non-Ferrous Metals, and Cement Plant Equipment An overall view of the container terminal in Valencia, Spain in which MC has an equity stake. 12 Offshore Substation of London Array Offshore Transmission Asset run by MC from 2013, which deliver the electricity generated by the world largest offshore wind farm to UK mainland. ORGANIZATIONAL STRUCTURE: 3 Development Divisions (14 Departments) Global Environmental & Infrastructure Business Group CEO Office, Global Environmental & Infrastructure Business Group Administration Department ■ Environmental Business Division Environmental Energy Business Department, Environmental Magnetics Business Department, Environmental Business, R&D Department ■ New Energy & Power Generation Division EMEA Power Generation Business Department, Americas Power Business Department, Asia & Oceania Power Business Department, Power Systems Department, Power Systems International Department, Power Transmission Business Department, Power Marketing, Japan Department ■ Infrastructure Business Division Water Business Department, Transportation Infrastructure Business Department, Engineering Business Department, Plant Projects Department 13 INDUSTRIAL FINANCE, LOGISTICS & DEVELOPMENT GROUP The Industrial Finance, Logistics & Development Group is working hard to develop the industrial finance business, targeting real assets and businesses where we can leverage our expertise and networks as a global integrated business enterprise. By integrating our three main functions of “development & trade”, “ownership & administration”, and “asset management”, we are funding industries and providing more opportunities for investors to manage their capital. Specifically, our group is providing comprehensive finance services in certain domains that are unique from those offered by financial institutions. These include asset management, infrastructure financing, corporate financing, and leasing. In addition, we are promoting real estate development concentrating mainly on commercial facilities, logistics centers and condominiums, and providing solutions in logistics fields. MC is currently developing its private aviation services business on a global scale, including its wholly-owned aircraft leasing subsidiary, MC Aviation Partners. 14 INDUSTRIAL FINANCE, LOGISTICS & DEVELOPMENT GROUP BUSINESS ◦ Asset management for real estate investment funds and related finance Asset business Management ◦ Private equity investment management Business Division business ◦ Asset management business for other real assets GYRE, a high-end retail complex owned by Japan Retail Fund Investment Corporation managed by an MC subsidiary. ◦ Infrastructure related finance business ◦ General leasing business in