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