Post on 24-Mar-2020
ContentsMitsubishi Corporation 2019
Introduction � 2Corporate Philosophy / Corporate History
Global Network � � 4
Organizational Structure � � 6
MC Group Corporate Vision � � 7
Midterm Corporate Strategy 2021 � � 8
Introduction to Business Groups � 10
Sustainability � 12
Corporate Governance and � 14Internal Control System
Compliance � 15
Financial Highlights � 16
Management / Corporate Data � 18
Mitsubishi Corporation
Mitsubishi Corporation (MC) is a global integrated
business enterprise that develops and operates
businesses with MC’s offices and subsidiaries in 90
countries and regions and approximately 1,400 group
companies around the world.
MC has 10 Business Groups that operate across
virtually every industry. These include natural gas,
industrial materials, petroleum & chemicals, mineral
resources, industrial infrastructure, automotive &
mobility, food industry, consumer industry, power
solution, and urban development. Through its 10
Business Groups, MC’s current activities have
expanded far beyond its traditional trading operations
to include collaborating with partners around the
world and getting actively involved in development,
production, and manufacturing operations in the
frontlines.
MC remains ful ly dedicated to growing i ts
businesses and aims to help enrich society while
adhering to its principle of conducting business with
integrity and fairness.
Introduction
2
The Three Corporate Principles were formulated in 1934, as the action guidelines of Mitsubishi Trading Company (Mitsubishi Shoji Kaisha), based on the teachings of Koyata Iwasaki, the fourth president of Mitsubishi.
Although Mitsubishi Trading Company ceased to exist as of 1947, the principles were adopted as MC’s corporate philosophy, and this spirit lives on in
the actions of today’s management and employees. The Three Corporate Principles also serve as the cornerstone of the management ethos of the so-called Mitsubishi group of companies. Active in many business fields and united by a common history and philosophy, the Mitsubishi companies continue to grow through a strong spirit of friendly competition with one another.
Corporate Philosophy – Three Corporate Principles
Foundation to 1970s
The 1980s to 1990s
The 2000s
2010s
Corporate History
Str ive to enr i ch soc ie ty, bo th materially and spiritually, while contributing towards the preservation of the global environment.
Maintain principles of transparency and openness, conducting business with integrity and fairness.
Expand business, based on an all-encompassing global perspective.
Corporate Responsibility to Society “Shoki Hoko”
Integrity and Fairness
“Shoji Komei”
Global Understanding Through Business
“Ritsugyo Boeki”
(The modern day interpretation of the Three Corporate Principles, as agreed on at the Mitsubishi Kinyokai meeting of the companies that constitute the so-called Mitsubishi group in January 2001.)
1954 New Mitsubishi Shoji was founded and listed on both the Tokyo and Osaka stock exchanges.
1967 Announced its first management plan.
1968 Made its first large-scale investment by committing to a large LNG (liquefied natural gas) development project in Brunei.
1971 Made “Mitsubishi Corporation” its official English name.
1986 Drew up a new management plan and new policy that shifted the company’s focus from operating transactions to profits.
1992 Announced a new management policy to reinvent the company as a “Sound, Global Enterprise.” Began placing greater focus on its consolidated operations and increasing the value of its assets.
1998 Announced “MC2000” which introduced a “Select & Focus” approach to business, strengthened strategic fields, and emphasized customer-oriented policies. The new plan was instrumental in shoring up the company’s foundations and paving the way to a prosperous future.
2001 Introduced an aggressive new blueprint for growth titled “MC2003” which involved expanding the company’s value chains, strengthening its profitability, and focusing strategies to create new businesses.
2004 Unveiled “INNOVATION 2007” which sought to establish MC as a “New Industry Innovator” by accelerating the company’s research and development activities to respond to future strategic fields.
2010 Announced “Midterm Corporate Strategy 2012” which sought to strengthen the company’s management platform based on the diversification of business models.
2016 Released “Midterm Corporate Strategy 2018” with a corporate vision to leverage MC’s ingenuity to create new business models and generate value for societies, thereby developing the highest level of management expertise.
2018 Announced “Midterm Corporate Strategy 2021.”
3
JapanSapporoSendaiNagoyaNiigataToyamaShizuokaOsakaTakamatsuHiroshimaFukuokaNaha
North AmericaNew YorkSeattleSilicon ValleyLos AngelesHoustonWashington, D.C.DallasBostonTucsonVancouverToronto
Mexico CityQuerétaro
Latin America & the CaribbeanPanama CityQuitoLimaSanta CruzBogotáSantiagoCaracasAsunciónBuenos AiresSão PauloRio de JaneiroSantosParanaguaHavana
EuropeLondonMadridParisBrussels
AmsterdamDüsseldorfMilanOsloPragueStockholmWarsawBucharestBelgradeAthensSofiaMoscowVladivostokYuzhno-SakhalinskKievAlmaty
AfricaJohannesburgDakarCasablancaAbidjanAlgiersLagosTunis
MaputoNairobiAddis AbabaDar es Salaam
Middle East & Central AsiaIstanbulAnkaraAshgabatTashkentDubaiCairoTel AvivAmmanRiyadhAl KhobarBasraDohaAbu DhabiMuscatKuwaitTehran
East AsiaUlaanbaatarBeijingGuangzhouShenzhenWuhanXiamenQingdaoShanghaiDalianChengduHong KongTaipei
Asia & OceaniaKarachiIslamabadLahoreNew DelhiMumbaiKolkataChennaiBangaloreColomboDhaka
YangonNay Pyi TawBangkokKuala LumpurSingaporePhnom PenhVientianeHanoiHo Chi Minh CityJakartaSurabayaBandar Seri BegawanManilaMelbourneSydneyPerthMount WaverleyAucklandSeoulKwangyangPohang
Location of MC Operations
North America
18 Offices and Subsidiaries433 Group Companies
Latin America& the Caribbean
16 Offices and Subsidiaries107 Group Companies
The international situation is in a constant state of flux.
Recent major geopolitical changes are occurring rapidly
and have an extensive impact, which creates an increasingly
complex business environment.
As we generate significant earnings from our overseas
business activities, we remain committed to strengthening
our ability to respond appropriately to such change. Based
on this approach, it is vital that we support the growth of our
group companies and manage risk by applying real-time
information from the frontline directly to our businesses.
Information is obtained through our global network including
approximately 1,400 group companies in 90 countries and
regions around the world.
We will continue to strengthen our intelligence capability
through the integration of human networks, business
knowledge, and partnerships. Our strong global network
facilitates the discovery and development of new businesses
that will contribute to future growth.
By enhancing the quality of our global network and joining
the dots between specific intelligence and group company
management, we aim to increase the value of the MC Group.
Global NetworkMC has built a network to drive its next phase of major growth by constantly enhancing its ability to respond to change in tandem with fostering collaboration through the efficient and effective roles among MC offices and subsidiaries, group companies and the head office.
(As of January 1, 2019)
4
Head Office
Middle East & Central Asia
30 Offices and Subsidiaries3 Group Companies
Europe
27 Offices and Subsidiaries223 Group Companies
Africa
12 Offices and Subsidiaries5 Group Companies
Asia & Oceania
50 Offices and Subsidiaries210 Group Companies
East Asia
24 Offices and Subsidiaries80 Group Companies
Japan
25 Offices and Subsidiaries350 Group Companies
Head Office: TokyoNumber of offices in Japan: 25(including 14 annex offices)Number of offices and subsidiaries overseas: 177(including 38 project offices)
*Locations of offices and subsidiaries are marked.(excluding project offices and annex offices in Japan)*Refers to heads of MC offices and subsidiaries (excluding project offices and annex offices in Japan and overseas)
*As of December 31, 2018. Including affiliates for which subsidiaries implement consolidated accounting procedures (including MC’s 43 regional and other subsidiaries which implement consolidated accounting procedures)*MC’s 43 regional and other subsidiaries are excluded from the number of group companies listed by region on the map
Number of group companies: 1,454(1,008 consolidated subsidiaries and 446 equity-method affiliates)
5
Organizational Structure (As of April 1, 2019)
Industrial Materials Group CEO Office
Industrial Materials, Petroleum & Chemicals Administration Dept.
Carbon Div.
Steel Business Div.
Performance Materials Div.
Industrial Materials Group
Petroleum & Chemicals Group CEO Office
Industrial Materials, Petroleum & Chemicals Administration Dept.
Petroleum Div.
Petrochemicals Div.
Basic Chemicals Div.
Petroleum & Chemicals Group
Mineral Resources Group CEO Office
Natural Gas & Mineral Resources Administration Dept.
Mineral Resources Investment Div.
Mineral Resources Trading Div.
Mineral ResourcesGroup
Industrial Infrastructure Group CEO Office
Industrial Infrastructure Administration Dept.
Plant Engineering Div.
Industrial Machinery Div.
Ship & Aerospace Div.
Industrial Infrastructure Group
Consumer Industry Group CEO Office
Consumer Industry Administration Dept.
Retail Div.
Apparel & S. P. A. Div.
Healthcare & Food Distribution Div.
Logistics Business Div.
Consumer IndustryGroup
Automotive & Mobility Group CEO Office
Automotive & Mobility Administration Dept.
Automotive Business Div.
Isuzu Business Div.
Automotive & MobilityGroup
Power Solution Group CEO Office
Power Solution Administration Dept.
Environmental Business Div.
New Energy & Power Generation Div.
Power SolutionGroup
Food Industry Group CEO Office
Food Industry Administration Dept.
Food Sciences Div.
Food Resources Div.
Fresh Food Products Div.
Consumer Products Div.
Food IndustryGroup
Urban Development Group CEO Office
Urban Development Administration Dept.
Urban Infrastructure Div.
Urban Development Div.
Asset Finance Div.
Urban DevelopmentGroup
Natural Gas Group CEO Office
Natural Gas & Mineral Resources Administration Dept.
Natural Gas Div. (Asia Pacific)
Natural Gas Div.(Americas, Europe and ME)
Natural GasGroup
Internal Audit Dept.
Corporate Strategy & Planning Dept.
Audit & Supervisory Board Members’
OfficeBusiness Investment Management Dept.
Digital Strategy Dept.
IT Service Dept.
Corporate Communications Dept.
Global Human Resources Dept.
Corporate Sustainability & CSR Dept.
Corporate Administration Dept.
Legal Dept.
Global Strategy and Regional Management Dept.
Regional Market Development Dept.
Global Risk & Insurance Management Dept.
Corporate Accounting Dept.
Finance Dept.
Structured Finance, M&A Advisory Dept.
Investor Relations Dept.
Corporate Staff SectionGovernance,Nomination & Compensation
Committee
President andChief Executive
Officer
Audit & Supervisory
Board Members
General Meeting of Shareholders
Executive Committee
Audit & Supervisory
Board
Board of Directors
International Advisory
Committee
Business Strategy Committee
Management Strategy Meeting
Investment Committee
Human Resources Development Committee
Digital Strategy Committee
Compliance Committee
Sustainability & CSR Committee
Disclosure Committee
Chief Compliance Officer
*Organizational Structure of the head office
6
MC Group Corporate Vision
The MC Group Will Deliver Sustainable Growth by
Fulfilling Societal Needs
The MC Group aims to deliver sustainable growth by adapting to changes in the business
environment and fulfilling societal needs in due consideration of the United Nations'
Sustainable Development Goals (SDGs). To achieve this aim, the MC Group shall rely on
three core strengths, namely its collective capabilities to adopt a holistic view of industry,
its foresight to identify new seeds of growth, and its execution skills to germinate them.
Simultaneously generating economic value, environmental value
and societal value through our businesses
MC Group
EconomicValue
CollectiveCapabilitiesto adopt a holistic
view across numerousindustries
Foresightto identify new seeds of growth
ExecutionSkills
to achieve growth
The ThreeCorporate Principles
Corporate Responsibility to Society
Integrity and Fairness
Global Understanding Through Business
SocietalValue
EnvironmentalValue
Mission & Corporate Philosophy
● The "Three Corporate Principles" serve as the MC Group's core philosophy and underpin its commitment to fair, responsible, and global business practices.
● By pooling its collective capabilities, the MC Group strives to fulfill societal needs and meet stakeholder expectations by simultaneously generating economic, societal, and environmental value.
Adaptability
● The MC Group prides itself in adapting to our ever-evolving world, anticipating and responding to changes in geopolitical, economic and industrial landscapes, the last two of which are being increasingly driven by innovations in technology.
Consolidated Growth Strategy
● The MC Group includes approximately 1,400 enterprises, and as the MC Group works to raise their consolidated earnings, it remains equally committed to growing their individual corporate value, while simultaneously generating three values.
● By leveraging the diverse expertise found throughout its network of group companies and more than 150 Business Units, MC shall continue to innovate and inspire global industries.
● MC shall optimize its portfolio by dynamically allocating management resources based on its level of engagement in each business. Sizeable growth investments are companywide commitments to develop next-generation earnings drivers.
● The MC Group is dedicated to rearing the highest quality of management professionals, ethically grounded leaders with the foresight to identify new seeds of growth and the execution skills to germinate them.
● Regardless of how our world evolves, there will always be opportunities to deliver goods and services that meet societal needs and improve our quality of life. This recognition is the very foundation of MC's consolidated growth strategy.
7
Outline of Midterm Corporate Strategy 2021
Portfolio Strategies Aimed at Stimulating Further Growth
Our new Midterm Corporate Strategy aims
to realize triple-value growth* through MC’s
business-management model.
It will make MC more adaptable to changing
geopolitical dynamics, the transition to a digital
age and other rapid developments.
The strategy’s four sections are outlined on
the right.
By strengthening our operations in the
Services Sector and downstream businesses,
we will endeavor to stimulate more growth
in what is currently a very stable business
portfolio.
*Simultaneously generating economic value, societal value, and environmental value
Business Portfolio1
Growth Mechanisms2
HR System Reforms3
Financial Targets & Capital Policy4
External Environment
・Changing geopolitical dynamics due to “America-First” agenda in US, China’s “One‐Belt, One-Road” policy, and other factors.
・Strong US & China economies, solid Japan-West relations and growth in emerging economies countered by constant market volatility.
・Growing influence of platform companies and digitization on business models.
Internal Challenges
・Building our envisioned portfolio - one that is adaptable to changes in our operating environment.
・Stimulating triple-value growth* by actively engaging in the management of MC’s business investments.
・Developing highly skilled management professionals.
・Portfolio-Based Decision Making
・Strategy Creation Through Multi-Dimensional Portfolio Analyses
・Value‐Added Cyclical Growth Model & Improved ROE
・Enhancement of New Business Concepts & Digital Strategies
・Continuous Development of Highly Skilled Management Professionals・Redesigned Evaluation and Compensation Systems to Ensure Reciprocal Growth Between Company and Employees
・FY2021 Financial Targets: 900 Billion Yen
・Financial Discipline and Extension of Progressive Dividend Scheme
Meat, Fish &Vegetables
Grains &Food Raw Materials
Mineral Resources Natural Gas
Daily NecessitiesProcessing &
ManufacturingHealthcare
Motor VehiclesMachinery &Equipment
Steel
LNGPower Generation
Petrochemicals
Upstream
Midstream
Dow
nstream
Living Energy &Power Generation
Mobility &Infrastructure
Services (IT, Logistics, Finance, etc.)
Investment Balance (as of end of FY2017) Sectors
CommunicationsData Assets
LogisticsLeasing
RetailMobility Services
Urban DevelopmentDistributed
Power GenerationE-Commerce
Internet Services
Midterm Corporate Strategy 2021 Achieving Growth Through Business Management Model
8
Financial Targets & Capital Policy
Value - Added Cyclical Growth Model & Improved ROE
We will identify Potential Growth Sources
and nurture them into Growth Drivers and
Core Businesses by enhancing their value.
In this new cyclical growth model, even Core
Businesses will be replaced with new Growth
Driver Candidates if MC can no longer add
value to them. This will have the added benefit
of improving MC’s ROE.
By continuously growing MC’s Business-
Related Segments and making it more
competitive in Market-Related Segments,
we will aim for an even higher double-digit
ROE. We will extend the current progressive
dividend scheme, and aim to increase MC’s
dividend payout ratio from 30% to 35% in
the future.
(billion yen)
FY2016
339.5
100.2
FY2017 FY2018(Estimate)
FY2021
440.3
366.8
193.8
560.2
Double‐Digit ROE
900
392
243
640
Consolidated Net Incom
e
FY2016
80yen
FY2017 FY2018(Estimate)
FY2021
110yen 125yen
ShareholderReturns
FinancialDiscipline
Cash Out
Cash Flowfrom
Operation
Cash In
+αYen
ProgressiveDividend125yen
Dividend Policy
● Capital Policy● Financial Target
Investment Plan・Invest as necessary regardless of
Business Group performance→ Clean break from “market-follower”
investment practice・Maintain optimal asset balance in
Business Related and Market-Related S e g m e n t s ( a t l e a s t 7 0 % i n Business-Related Segment)
Divestment Plan・Divest to generate
cash flow for new investments・Assign divestment
t a r g e t t o e a c h Business Group
Dividend for net income of 900 billion yen with dividend payout ratio of 35% will be around 200 yen/ share
We will increase MC’s shareholder returns by flexibly buying back the company’s shares in a financially disciplined manner (e.g. paying due consideration to our optimal Investment Leverage Ratio range).
Business‐RelatedSegments
650
Business‐RelatedSegments
650
Market‐RelatedSegments
250
Market‐RelatedSegments
250
New Investmentsfor Growth
New Investmentsfor Growth
Cash Flowfrom
Divestments
Cash Flowfrom
Divestments
Business Value
Time
EnhanceBusiness
Value
Growth trajectory of
operating companies
GrowthDrivers
Core Businesses
Growth Driver Candidates
Improved ROEGenerate su�cient returns as capital gains by enhancing value of businesses.→ Improve capital e�ciency from all
investments, including large scale M&As.
Cost of Capital
Traditional Investment Model(Green Field)
Cost of Capital
Invest
Invest in businesses where MC can generate added value. Build both Potential Growth Sources and Growth Drivers simultaneously.
Replace all businesses (including Core Businesses) where MC can no longer add value with new Growth Driver Candidates.
What makes MC capable of enhancing business value?→ Collective Capabilities:
To enable a holistic view of industry→ Conception Skills:
To identify Potential Growth Sources in the restructuring of industries, M&As, etc.
→ Execution Skills:To grow corporate value by actively managing the businesses
Potential Growth Sources
Potential Growth Sources
Returns(equity-method earnings÷
investment amount)
Returns(equity-method earnings÷
investment amount)
Potential Growth Sources Growth Drivers Core BusinessesOur new growth model will enhance business value through this divestment-to-reinvestment cycle
9
Introduction to Business Groups
Natural Gas Group■ Natural Gas Div.
(Asia Pacific)・Brunei Natural Gas Dept. ・Malaysia Natural Gas Dept. ・Indonesia Natural Gas Dept. ・Australia Natural Gas Dept.
■ Natural Gas Div. (Americas, Europe and ME)
・LNG Operation Dept. ・LNG Global Marketing Dept. ・Canada Natural Gas Dept. ・Americas Natural Gas Dept. ・Middle East/Africa Natural Gas Dept. ・Europe/Russia Natural Gas Dept.
Industrial Materials Group■ Carbon Div. ・Carbon Materials Dept. ・Petroleum Coke Dept.
■ Steel Business Div. ・Metal One Dept.
■ Performance Materials Div. ・Functional Chemicals Dept. ・PVC Dept. ・Housing & Construction Materials Dept.
Mineral Resources Group■ Mineral Resources
Investment Div.・Iron Ore Dept. ・MDP Dept. ・Base Metals Dept. ・Aluminium Dept.
■ Mineral Resources Trading Div.
Petroleum & Chemicals Group
■ Petroleum Div. ・Petroleum Trading Dept. ・Petroleum Products Dept. ・Utility Fuel Dept.
■ Petrochemicals Div. ・Petrochemicals Project Dept. ・Basic Petrochemicals Dept. ・Refinery Chemicals Dept. ・Plastics Dept.
■ Basic Chemicals Div. ・Chlor-Alkali Dept. ・Agriculture Solution Dept. ・Alcohol & C1 Chemicals Dept.
Industrial Infrastructure Group
■ Plant Engineering Div. ・Engineering Business Dept. ・Infrastructure & Industrial Projects Dept.
■ Industrial Machinery Div. ・Building Solutions Dept. ・Industrial Equipment Dept. ・Construction Equipment & Rental Business Dept.
■ Ship & Aerospace Div. ・Ship & Offshore Dept. ・Defense and Aerospace Dept.
10
Automotive & Mobility Group■ Automotive Business Div. ・ASEAN Automotive Dept. ・North Asia Automotive Dept.
・Europe & Russia Automotive Dept. ・Latin America, Middle East & Africa Automotive Dept. ・Automotive Retail & Mobility Service Dept.
■ Isuzu Business Div. ・Isuzu ASEAN Dept. ・Isuzu Oceania, Europe & Americas Dept. ・Isuzu India & Middle East Dept.
Food Industry Group
■ Food Sciences Div. ・Bio- Fine Chemicals Dept. ・Life Science Products Dept.
■ Food Resources Div. ・Food & Beverage Materials Dept. ・Grain, Oilseeds, and Feed Materials Dept.
■ Fresh Food Products Div. ・Marine Products Dept. ・Agricultural Produce & Dairy Products Dept. ・Livestock & Meat Products Dept.
■ Consumer Products Div. ・Global Consumer Products Dept. ・Sweetener, Starch Products & Wheat Flour Dept.
Power Solution Group■ Environmental Business Div. ・Environmental Energy Dept. ・Environment Business, R&D Dept.
■ New Energy & Power Generation Div.
・Power Service Business Dept. ・Power Systems Dept.
Consumer Industry Group
・Tire Dept.
■ Retail Div. ・Food Retail Dept. ・Retail Marketing Dept.
■ Apparel & S.P.A. Div. ・Apparel Dept. ・S.P.A. Manufacturing Dept.
■ Healthcare & Food Distribution Div.
・Food Distribution Dept. ・Paper & Packaging Dept. ・Healthcare Dept.
■ Logistics Business Div. ・Logistics Business Development Dept. ・Logistics Business Dept.
Urban Development Group
■ Urban Infrastructure Div. ・Water Business Dept. ・Transportation Infrastructure Dept. ・Global Infrastructure Dept.
■ Urban Development Div. ・Urban Development Dept. ・Asia Real Estate Development Dept. ・Real Estate Business Management Dept.
■ Asset Finance Div. ・Merchant Banking Dept. ・Leasing Business Dept. ・Aviation Business Dept.
11
Mitsubishi Corporation (MC) regards its corporate philosophy, the Three
Corporate Principles, as the cornerstone of all of its activities. With this in
mind, MC has laid out the purpose and ideals of its activities in the Corporate
Standards of Conduct, along with upholding the importance of consideration
for the global environment and respect for human rights in the Environmental
Charter and Social Charter. These concepts are guiding MC forward as it pushes
ahead with its business activities.
Midterm Corporate Strategy 2021 also re-emphasizes the need to
simultaneously generate economic, societal, and environmental value in order
to achieve growth for the MC Group through its business management model.
Specifically, MC will strive to create businesses that generate value for
societies by addressing key sustainability issues through its business activities
and contributions to society, thereby ensuring sustainable growth for the
company.
Sustainability
MC recognizes that its response to global sustainability issues will have a significant impact on its
prospects for long-term growth. Therefore, the company has identified “Themes of Key Importance
for MC’s Sustainable Growth” as a management priority and is committed to pursuing sustainable
growth in line with these themes. As part of this, MC is also endeavoring to contribute towards the
achievement of the SDGs*.* The SDGs are a collection of 17 international goals that form the basis of the 2030 Agenda for Sustainable Development which was adopted as a global priority at a UN summit held in September 2015.
The Sustainability & CSR Committee, which is chaired by the Corporate Functional Officer (in charge
of corporate sustainability) and mainly attended by the Executive Vice Presidents, discusses MC’s
basic policies regarding sustainability and CSR in general, among other matters. Moreover, the
Investment Committee reviews and makes decisions on individual loan and investment proposals
from a comprehensive perspective, considering not only economic aspects but also environmental
and social aspects.
MC established a Sustainability Advisory Committee which is comprised of eight external experts
who represent MC’s diverse stakeholder groups including NGOs, international agencies, ESG
investors and academia. The committee actively incorporates external stakeholder perspectives
into systems that utilize MC’s sustainability initiatives.
Key Sustainability Issues (Materiality)
Sustainability & CSR Committee and Investment Committee
The Sustainability Advisory Committee
Promotion Framework
Key Sustainability Issues for MC
Transitioning to a Low-carbon Society
Tackling Evolving Regional Issues
Growing Together with Local Communities
Procuring and Supplying in a Sustainable Manner
Addressing the Needs of Society through Business Innovation
Conserving the Natural Environment
Fostering Our Employees’ Maximum Potential
Economic Value
Societal Value Environmental Value
Simultaneously Generating Three Kinds
of Value
12
In 1973, MC established an office to oversee social and environmental affairs. Since
then, our employees worldwide have participated actively in long-running programs
that contribute to the communities in which we operate. MC’s corporate philanthropy is
comprised of six priority areas: the global environment, public welfare, education, culture
and the arts, international exchange & contributions, and recovery efforts for the Great East
Japan Earthquake. MC established our “DREAM AS ONE.” project in 2014 in order to expand upon our existing efforts in supporting parasports. Through sponsoring sports lessons, hosting sporting events, and conducting educational programs, the project aims to widen the field of parasports while also raising awareness and promoting greater understanding of these activities. MC provides regular courses aimed at training parasports volunteers and actively encourages employees to take part in volunteer activities which support parasports.
Shortly after the Great East Japan Earthquake and Tsunami struck in 2011, MC provided 10 billion yen in recovery support for the affected areas. In 2015, we committed to an additional 3.5 billion yen in support. MC continues to provide support and has dispatched around 4,800 MC Group employee volunteers to the region between April 2011 and December 2018. Through the Mitsubishi Corporation Disaster Relief Foundation, MC is providing scholarships for affected university students, extending recovery support grants to NPOs and other organizations taking part in restoration efforts, and taking steps to revitalize local industry and create jobs. The foundation also has a number of other projects, including a project that helps jointly manage fruit production, processing, and sales in Fukushima Prefecture along with the establishment of the Fukushima Ouse Winery which specializes in producing wines and liqueurs.
Mitsubishi Corporation Disaster Relief Foundation Website: https://mitsubishicorp-foundation.org/en/
Philanthropic Activities
This camp for single mothers and their children provides the
opportunity for participants to experience the great outdoors.
Held since 1974, the camp is run by MC Group staff members
who volunteer as camp counselors.
Friendship Camp for Mothers and Children
Great East Japan Earthquake Restoration Efforts
The MC Art Gate Program was launched in 2008 to help
aspiring young individuals pursue their dreams of becoming
professional artists. MC purchases and then sells young
artists’ artwork through charity auctions, which are open to the
public, and then uses the revenue from these auctions to fund
scholarships for future artists.
Mitsubishi Corporation Art Gate Program
MC began the first experimental project in Malaysia in 1990
with the aim of regenerating tropical forest ecosystems at
an accelerated rate. Since then, the project has expanded to
locations in Brazil and Kenya.
Regeneration of Tropical Forests
Mitsubishi Corporation is an official partner of the
Japanese Para-Sports Association.
Blind marathon runner and MC staff member Yuichi Takahashi (left)
Fukushima Ouse Winery products made from fruits produced in Fukushima Prefecture (wines, ciders, and liqueurs)
13
▪In-house members (3):
Ken Kobayashi* (Chairman of the Board)
Takehiko Kakiuchi (Member of the Board, President & CEO)
Shuma Uchino (Senior Audit & Supervisory Board Member)
*Committee Chairperson
*Committee Chairperson
▪In-house members (3):
Ken Kobayashi* (Chairman of the Board)
Takehiko Kakiuchi (Member of the Board, President & CEO)
Kanji Nishiura (Member of the Board, Executive Vice President)
▪Outside members (8):
Professor Joseph S Nye(Harvard University Distinguished Service Professor and Sultan of Oman Professor (U.S.A.))
Ratan N Tata (Chairman, Tata Trusts (India))
George Yeo (Chairman of Kerry Logistics Network (Singapore))
Jaime Augusto Zobel de AyalaⅡ(Chairman and CEO, Ayala Corporation (the Philippines))
Niall FitzGerald KBE (Former CEO & Chairman, Unilever (Ireland))
Ambassador Richard Armitage (Former Deputy Secretary of State (U.S.A.))
Akitaka Saiki (Outside Director)
Tsuneyoshi Tatsuoka (Outside Director)
Member Composition (as of April 1, 2019)
Governance, Nomination and Compensation Committee
International Advisory Committee
MC has made strengthening corporate governance on an ongoing basis
an important management concern as the foundation for ensuring sound,
transparent and efficient management. MC, based on the Audit & Supervisory
Board Member System, is thus working to put in place a corporate governance
system that is even more effective. This includes strengthening management
supervision through such measures as appointing Outside Directors and
Outside Audit & Supervisory Board Members (five Outside Directors and three
Outside Audit & Supervisory Board Members) who satisfy the conditions for
Independent Directors or Independent Audit & Supervisory Board Members,
and establishing advisory bodies to the Board of Directors where the majority
of members are Outside Directors and Outside Audit & Supervisory Board
Members as well as other experts from outside the company (Governance,
Nomination and Compensation Committee and International Advisory
Committee). At the same time, MC uses the executive officer system for prompt
and efficient decision-making and business execution.
MC’s efforts to improve and strengthen our internal control system are
ongoing in order to increase corporate value through proper and efficient
business operations in conformity with the law and our Articles of Incorporation.
The internal control system covers: compliance, financial reporting, internal
auditing and monitoring, management and storage of information, risk
management, efficient business execution, ensuring proper business in group
management, and Audit & Supervisory Board Members.
Corporate Governance and Internal Control System
Appointment/DismissalDetermination of Remuneration Parameters
Appointment and Supervision of
Executive O�cers
Proposal for discussion of important managerial matters, and report on execution of operations
Request
Advice
Report
Audit Accounting Audit
Audit/Report
Appointment/DismissalDetermination of Remuneration Parameters
Appointment/Dismissal
Audit & Supervisory Board Members
(Audit & Supervisory Board)
General Meeting of Shareholders
Executive Structure
Board of Directors Independent Auditors
Governance, Nomination and Compensation Committee
International Advisory Committee
8 In-house Directors5 Outside Directors
2 Full-time Audit & Supervisory Board Members3 Outside Audit & Supervisory Board Members
Member Composition (as of April 1, 2019)
▪Outside members (5):
Akihiko Nishiyama (Outside Director)
Toshiko Oka (Outside Director)
Akitaka Saiki (Outside Director)
Tsuneyoshi Tatsuoka (Outside Director)
Tadashi Kunihiro (Outside Audit & Supervisory Board Member)
14
MC has established various internal regulations based on the Three Corporate
Principles, MC’s guiding philosophy. These include the Corporate Standards
of Conduct and Code of Conduct. When engaging in business, officers and
employees are obligated to make compliance their top priority. MC also
introduced the post of Compliance Officer and appointed one to each Business
Group. These officers are responsible for ensuring compliance in daily business
operations.
As of the fiscal year ended March 2010, all company officers and employees
have been required to take e-learning courses, which include case studies on
the Code of Conduct. Following these courses, they must sign an agreement
stating that they understand and will adhere to the rules at all times. These
protocols have since been introduced at MC’s subsidiaries and affiliates.
Additional steps that have been taken throughout the MC Group include holding
Compliance Discussions to encourage personnel to discuss compliance issues
in each work place by using case studies (i.e. possible violations in view of the
office’s operations) and seminars, and distributing Compliance Case Study
Booklets to employees. These measures will ensure ongoing learning and
development, not only by employees and officers at MC, but by those at MC’s
subsidiaries and affiliates as well. More recently, MC released the “Mitsubishi
Corporation Anti-Corruption Guideline” with the aim of further improving our
efforts to prevent corruption, and launched the New Global Whistleblowing
System (“LUKS”), which makes it easier for employees of MC and its subsidiaries
to report compliance issues related to antitrust law and anti-bribery law.
MC’s actions are all based on this spirit of compliance; it remains an essential
factor in raising consolidated corporate value and we remain committed to
continuously upgrading and reinforcing our compliance initiatives.
ReportDirective
Report and ConsultationDirective
Report
Report and ConsultationDirective
Mitsubishi Corporation
Subsidiaries and Affiliated Companies
Appointment
Report
Directive
Report and
Consultation
(Target: Registered MC Domestic Subsidiaries)
Appointment
Chief Compliance Officer
President and CEO
Group CEO
Internal Whistleblower System
Compliance Mail Box and Helpline
Internal Audit Dept. Compliance Mail Box and Helpline
Outside Legal Counsel Compliance Mail Box and Helpline
Group Compliance Officer
Compliance Committee
Chairperson: Chief Compliance O�cer
Administration O�ce: Legal Dept. Compliance Administration O�ce
Organization Heads (BU, Division, Department, Branch, etc.)
Compliance OfficerImmediate Manager
Employees
Report and Consultation
Report and Consultation
MC Group Outside Legal CounselCompliance Mail Box and HelplineR
epor
t and
Con
sult
atio
n
Report (Web / Telephone)
Report
Global W
histleblowing S
ystem “LU
KS
”
(Notify of any breach (or potential breach) of relevant antitrust law
and anti-bribery law by M
C or MC’s subsidiaries)
Report
Audit
Employees
Au
dit
& S
up
ervi
sory
Boa
rd M
emb
erR
epor
t
Compliance
15
Revenues And Income [IFRS]
Revenues ¥6,925.6 ¥6,425.8 ¥7,567.4
Gross profit 1,098.9 1,328.6 1,886.6
Net income (Net loss) attributable to owners of the Parent ▲ 149.4 440.3 560.2
Net income (Net loss) attributable to owners of the Parent per share (diluted) (yen) ▲ 93.68 277.16 352.44
ROE (%) ▲ 2.9 9.3 10.9
ROA (%) ▲ 0.9 2.9 3.5
Financial Position [IFRS]
Total assets 14,916.3 15,753.6 16,037.0
Equity attributable to owners of the Parent 4,592.5 4,917.2 5,332.4
Equity per share attributable to owners of the Parent (yen) 2,898.23 3,101.43 3,362.34
Cash�Flows
Operating cash flows 700.1 583.0 742.5
Investing cash flows ▲ 503.9 ▲ 179.6 ▲ 317.6
Free cash flows 196.2 403.4 424.9Dividends
Dividend per share (for the year, yen) 50 80 110
Payout ratio (%) − 29 31
2018.3 2018.32017.3 2017.32016.3 2016.3
Summary Of Segment Information (Year Ended March 31, 2018) [IFRS]
*Income from equity method investment denotes Income from investments accounted for using the equity method.*Net income denotes net income attributable to owners of the Parent.
The organizational structure of MC’s Business Groups was renewed from FY2019. For details, please see page 6 and pages 10-11.
Global Environmental & Infrastructure Business Group
Industrial Finance, Logistics & Development Group Energy Business Group Metals Group Machinery Group Chemicals Group Living Essentials Group
Revenues 85.7 billion 101.4 billion 1,239.4 billion 1,021.7 billion 876.5 billion 1,359.6 billion 2,876.4 billion
Gross profit 38.1 billion 49.9 billion 55.7 billion 452.8 billion 195.6 billion 116.2 billion 971.8 billion
Income from equity method investment 37.3 billion 28.3 billion 44.1 billion 33.5 billion 28.8 billion 16.2 billion 23.6 billion
Net income 44.6 billion 44.2 billion 20.3 billion 261.0 billion 85.2 billion 30.6 billion 74.7 billion
Total assets 1,045.6 billion 814.8 billion 2,074.1 billion 3,777.3 billion 1,921.1 billion 993.7 billion 4,599.8 billion
No. of employees 1,716 1,482 1,774 11,474 10,180 6,869 40,512
Mitsubishi Corporation and Subsidiaries
Billions of YenFinancial Highlights
16
Revenues Gross Profit Net Income (Net loss) and ROE Net Income (Net loss) Per Share(Diluted)
Cash FlowsDividend Per Share and Payout RatioTotal Assets and Equity
20,000.0
16,000.0
12,000.0
8,000.0
4,000.0
0
(¥ billion)
600.0
500.0
400.0
300.0
200.0
100.0
0
-100.0
-200.0
18.0
15.0
12.0
9.0
6.0
3.0
0
-3.0
-6.0
(¥ billion)
8,000.0
6,000.0
4,000.0
2,000.0
0
(¥ billion)
2,000.0
1,500.0
1,000.0
500.0
0
(¥ billion)
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0
-50.00
-100.00
(¥)
(¥ billion)(dividend, ¥) (%)
(%)
Dividend per share Payout ratio
50.00
29
80.00
110.00
31
Total assets Equity
16.3 17.3 16.3 17.3 18.3 16.3 17.3 16.3 17.3 18.3
16.3 17.3 16.3 17.3 18.3
▲149.4
▲2.9
440.3
9.3 10.9
Net Income (Net loss) ROE
700.1
196.2
403.4
▲503.9
583.0
▲179.6
Operating cash flows Investing cash flows
16.3 17.3 18.3
Free cash flows
−600.0
−400.0
−200.0
0
200.0
400.0
600.0
800.0
6,925.66,425.8
1,098.9
1,328.6
1,886.6
277.16
352.44
14,916.3
4,592.5
15,753.6
4,917.2
18.3
7,567.4
18.3
560.2
▲93.68
18.3
16,037.0
5,332.4
742.5
424.9
▲317.6
110.00
100.00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0
38
36
34
32
30
28
26
24
22
20
18
*Net income (Net loss) denotes net income (net loss) attributable to owners of the Parent.*Equity denotes equity attributable to owners of the Parent.
17
Kanji Nishiura*
Hideaki Omiya**Chairman of the Board, Mitsubishi Heavy Industries, Ltd.
Tadashi Kunihiro*Attorney at T. Kunihiro & CO., Attorneys-at-Law
Akihiko Nishiyama**Professor, Ritsumeikan University
Ken KobayashiChairman of the Board
Shuma UchinoSenior Audit & Supervisory Board Member
Hiroshi Kizaki
Takehiko Kakiuchi*
Akitaka Saiki**
Yasuko Takayama*
Kazuyuki Masu* Iwao Toide Akira Murakoshi Masakazu Sakakida*
Toshiko Oka**CEO, Oka & Company Ltd.
Ikuo Nishikawa*
Mitsumasa Icho
Tsuneyoshi Tatsuoka**
Members of the Board
Audit & Supervisory Board Members
* Indicates a Representative Director.** Indicates an Outside Director as provided
for in Article 2-15 of the Companies Act.
* Indicates an Outside Audit & Supervisory Board Member as provided for in Article 2-16 of the Companies Act.
Management (As of April 1, 2019)
18
Mitsubishi Corporation Website
MC Library
For more details about Mitsubishi Corporation’s business, CSR and environmental activities, investor relations and career information, please visit our website.
This page contains additional resources, including our corporate profile video, an outline of our history, an overview of our social contribution activities and examples of company ads.
https://www.mitsubishicorp.com/jp/en/mclibrary
https://www.mitsubishicorp.com/global
Corporate Data (As of March 31, 2018)
Company NameMitsubishi Corporation
Date EstablishedJuly 1, 1954 (Date Registered: April 1, 1950)
Capital¥204,446,667,326
Shares Of Common Stock Issued1,590,076,851
Listed On The Following Stock ExchangesTokyo, Nagoya
Head OfficeMitsubishi Shoji Building3-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo, 100-8086, Japan**Registered Office of our companyMarunouchi Park Building6-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo, 100-8086, Japan
Number Of EmployeesParent company: 6,129Parent company and all of its consolidated subsidiaries: 77,476
President and Chief Executive Officer
Takehiko Kakiuchi *
Executive Vice Presidents
Kanji Nishiura*Corporate Functional Officer, Global Strategy
Hidemoto MizuharaPresident, Mitsubishi Corporation (Americas) (Concurrently) General Manager, Corporate Management Support Office (Americas)
Kazuyuki Masu*Corporate Functional Officer, CFO
Takeshi HagiwaraGroup CEO, Petroleum & Chemicals Group
Shinya YoshidaCorporate Functional Officer, Regional Strategy for Japan (Concurrently) General Manager, Kansai Branch
Yutaka KyoyaGroup CEO, Consumer Industry Group
Iwao Toide*Group CEO, Automotive & Mobility Group
Akira Murakoshi*Corporate Functional Officer, Corporate Communications, Human Resources
Masakazu Sakakida*Corporate Functional Officer, Corporate Sustainability & CSR, Corporate Administration, Legal(Concurrently) Chief Compliance Officer, Officer for Emergency Crisis Management Headquarters (Japan & Overseas / New Infectious Diseases, Compliance),Person Responsible for Security Trade Control, Person Responsible for Trade Procedures Control
Mitsumasa Icho*Group CEO, Urban Development Group
Norikazu TanakaGroup CEO, Mineral Resources Group
Hidenori TakaokaCorporate Functional Officer, Business Investment Management, CDO
Kotaro TsukamotoGroup CEO, Industrial Materials Group
Katsuya NakanishiGroup CEO, Power Solution Group
Jun NishizawaGroup CEO, Natural Gas Group
Norio SaigusaGroup CEO, Food Industry Group
Aiichiro MatsunagaGroup CEO, Industrial Infrastructure Group
Senior Vice Presidents
Takajiro IshikawaSeconded to Mitsubishi Heavy Industries, Ltd. (Seconded to Mitsubishi Heavy Industries America, Inc. (Senior Executive Vice President))
Yasuteru HiraiPresident, Mitsubishi Corporation China Co., Ltd. (Concurrently) General Manager, Beijing Branch, Mitsubishi Corporation China Co., Ltd.
Tsunehiko YanagiharaEVP, Mitsubishi Corporation (Americas) [Work location: Silicon Valley]
Nodoka YamasakiDivision COO, Healthcare & Food Distribution Div.
Tatsuo NakamuraDivision COO, Automotive Business Div.
Osamu TakeuchiDivision COO, Petrochemicals Div.
Kazunori NishioDivision COO, Retail Div.
Koji KishimotoDivision COO, Food Sciences Div.
Eisuke ShiozakiDivision COO, Carbon Div.
Yoshinori KatayamaGeneral Manager, Global Strategy and Regional Management Dept.
Yoshifumi HachiyaGeneral Manager, Business Investment Management Dept.
Hisashi IshimakiGeneral Manager, Automotive & Mobility Group CEO Office
Takuya KugaDivision COO, Urban Infrastructure Div.
Yasumasa KashiwagiDivision COO, Fresh Food Products Div.
Hiroki HabaDivision COO, Petroleum Div.
Yutaka KashiwagiGeneral Manager, Power Solution Group CEO Office
Keiichi ShiobaraSeconded to Mitsubishi Corporation RtM International Pte. Ltd. (Chairman & CEO)(Concurrently) Division COO, Mineral Resources Trading Div.
Takeshi ArakawaDivision COO, Consumer Products Div.
Shigeru WakabayashiDivision COO, Isuzu Business Div.
Koichi SeriDivision COO, Mineral Resources Investment Div. (Concurrently) General Manager, MDP Dept.
Yasuhiro KawakamiSeconded to Cermaq Group AS (Chair of the Board)
Kenji OtaGeneral Manager, Natural Gas Group CEO Office
Yuzo NouchiGeneral Manager, Corporate Accounting Dept.
Masaru SaitoDivision COO, Natural Gas Div. (Asia Pacific)
Koji OtaDivision COO, Plant Engineering Div.
Executive Officers
* Represents Members of the Board
19