Business Development & Strategic Targets in Peru · Business Development & Strategic Targets in...

Business Development & Strategic Targets in Peru

Takeo AraiMitsui del Peru S.A.

September 12th, 2016

Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.

Index

About Mitsui & Co., Ltd.

History of Business Development in Peru

Current Main Business Activities in Peru

Business Strategic Targets in Peru

Human Development Cooperation in Peru

2


About Mitsui & Co., Ltd.

3

Copyright © MITSUI & CO., LTD. All Rights Reserved. 4

MITSUI & CO. at a Glance

About Us

(As of March 31, 2016)

43,611

Number of Employees

(consolidated)

462

Number of Subsidiaries and Equity

Accounted Investees

65Global Network

countries/regions

(As of Aug 1, 2016)

138

Number of Offices and Overseas

Trading Subsidiaries

(As of Aug 1, 2016)

Copyright © MITSUI & CO., LTD. All Rights Reserved. 5

MITSUI & CO.’s Business Areas

Metals

Machinery & Infrastructure

Chemicals

Energy

Lifestyle

Innovation & Corporate

Development

6business areas

Providing new value across a broad range of business domains, leveraging ourbusiness engineering capabilities and diverse experience.


History of Business Development in Peru

6


History of Mitsui in Peru

7

Milestone

1950’s

～1960’s

1957 Opened representative office in Lima.

1958 Exported iron ore to Japanese steel mills and copper concentrates to Japanese smelters.

1962 Contract for the Comprehensive Development Plan (Hydroelectric plant, irrigation) for Tacna.

1963 Opened Lima Branch office.

Established Industrias Maritimas de Supe (IMASU), Fish meal producer.Exclusively exported copper concentrates of new Condestablemine to Nippon Mining Smelter.

1964 Contract for iron ore export to Japan from Marcona mine.

1965 Toyota del Peru (TDP) was incorporated (Toyota 50%, Mitsui 50%).

1966 Cia. Minera Santa Luisa (Mitsui Mining and Smelting Company 70%, Mitsui 30%) started development of Huanzala zinc-lead mine.Completed construction of Aricota hydropower plant in Tacna with J-Power.

1967 TDP started production at Ventanilla assembly plant.

1968 NEC and Mitsui supplied new Satellite Communication Station to Entel Peru.

1969 Constructed and operated a warehouse of copper concentrates at Callao port.Quimica Sol was established. (Asahi Chemical 75%, Mitsui 20%)

Established IMASU Fish meal plant (1963)

Started development of Huanzala zinc-lead mine (1966)

Toyota assembly plant started production (1967)

Completion of Aricotahydropower plant in Tacna (1966)

Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.8

Milestone

1970’s

～1980’s

1970Mitsui del Peru (MDP) was established in Lima.

1971MDP Automotive Div. started Toyota retail business.

1972Constructed and financed copper refinery for Minero Peru in Ilo with Furukawa Electric.Toyo Engineering designed and built the Talara Refinery cracking, fertilizer, etc. units.

1974Provided offtake financing to Petroperu for construction of North-Peruvian pipeline project.

1975MDP Automotive Div. opened the first showroom in Lima.

1976Provided offtake financing to SPCC for new Cuajone copper mine and Ilo smelter expansion.

1980’s: Peru drifted into period of turbulence: Nationalization of the banking, Hyper-inflation,

Terrorism, El Niño, etc

Construction and finance of copper refinery for Minero Peru (SPCC) (1972)

Offtake Finance to construct North Peruvian Pipeline(1974)


Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED. Established MASA (1994) Established MML (1998)Established PTS (1993) 9

Milestone

1990’s

1992 Installed with NEC the first PDH microwave digital multi-channel network to Telefonica del Peru.

1993 Established Peru Tire Service (PTS).

1994 Established Mitsui Automotriz (MASA).

Provided offtake financing to SPCC for the expansion of SX-EW plant.

1996 Obtained 18% of stock of Dicsa Peru (DIP), Distributor of Komatsu.

1998 Established Mitsui-MASA Leasing (MML) and obtained local license of finance leasing.Provided offtake financing to SPCC for the modernization of Ilo smelter.Participated in concession of Ferrocarril Central Andina(Mitsui 10%)

Participated in concession of Ferrocarril Central Andina(1998)


Invested in Dicsa Peru (1996)


Milestone

2000’s

2000 Awarded with the order for 447 units of Komatsu construction machines by Gov. of Peru.Purchased 59% of stocks of DIP and changed name to Mitsui Maquinarias Peru (MMP)

2001 PTS opened 1st Passenger tire (PSR) retail store in Trujillo.

2004 MASA started Toyota Forklift distribution & retail business.

2005 Became 100% shareholder of MMP and started new engine & component workshop at Ate.

2006 Cia. Minera Santa Luisa started operation of Pallca zinc-lead mine.MASA started Hino retail business.

2007 MMP opened officially the Training and Demonstration Center.Bridgestone Off The Road Peru (BSORP) was established (Bridgestone 75%, Mitsui 25%).

2009 MAF Chile purchased 100% stocks of MML from MASA.

MMP became Komatsu Mitsui Maquinarias Peru(KMMP) (Mitsui 60%, Komatsu 40%).

MMP opened Training & Demonstration Center (2007)

MASA started Toyota Forklift distribution & retail business(2009)



Milestone

2010’s

2010 MML obtained local license for credit and became Mitsui Auto Finance Peru (MAFP).

Participated in new Bayovar phosphate rock mine, Compania Minera Miski Mayo (CMM) (Vale 40%, Mosaic 35%, Mitsui 25%).Entered into offtake agreement of bioethanol produced by Maple Biocombustibles.

2012 MASA started Lexus dealership.

Acquired Tacna and Panamericana Solar power plants (42.4MW), through EMIF.

2013 Started human development cooperation program for SENATI.

2014 Delivered Lexus/Toyota hybrid cars to the Peruvian government through Japanese grant aid.

2016 PTS started Bandag retread tire business.

Inauguration of new Bayovarphosphate rock mine (2010)

Acquired Solar Power Plant through EMIF(2013)



Current Main Businesses Activities in Peru

12


Group Companies in Peru （Subsidiaries）

13

Number of Group Companies

9

Number of Employees

approx. 4,000

Komatsu-Mitsui Maquinarias Peru S.A.

Mitsui Automotriz S.A. Mitsui Auto Finance Peru S.A.

Distribuidora CumminsPeru S.A.C.

Novus Peru S.R.L.


Toyota del Peru S.A. Peru Tire Service S.A.

Compañía Minera Miski Mayo S.A. Bridgestone off the Road Tire Peru S.A.C.

Number of Group Companies

9

Number of Employees

approx. 4,000

Group Companies in Peru （Affiliates）


Group Companies and Business Activities in Peru

15

Name Business Participation Established Employees

Au

tom

otive

Toyota del PeruCar distribution(Toyota, Hino, Daihatsu).

Mitsui：50%Toyota：50%

1965 134

Mitsui AutomotrizCar dealer (Toyota, Hino)Forklift distribution (Toyota, BT)

Mitsui：100% 1994 611

Mitsui Auto Finance Peru Auto finance (Toyota) Mitsui：100% 1998 149

Mach

inery

Komatsu Mitsui Maquinarias Peru

Distribution of mining and construction machinery (Komatsu, Bomag, Hensley)

Mitsui： 60%Komatsu： 32%Cummins： 8%

1996 1,339

Distribuidora Cummins PeruDistribution of engines and generators(Cummins)

KMMP：100% 2011 464

Tires

Peru Tire Service Dealer of mining, truck & bus and passenger tires (Bridgestone, Firestone)

Mitsui：50%Local：50%

1993 140

Bridgestone Off The Road PeruDistribution of mining tire (Bridgestone)

Mitsui：25%Bridgestone：75%

2007 20

Min

e Compañía Minera Miski Mayo Phosphate rock miningMitsui：25% Vale：40%Mosaic ：35%

2003 761

Feed Novus Peru Distribution of animal feed ingredients Mitsui：80% 2005 1


Au

tom

otive

Toyota del Peru

Mitsui Automotriz

Mitsui Auto Finance Peru

Mach

inery

Komatsu Mitsui Maquinarias Peru

Distribuidora Cummins Peru

Tires

Peru Tire Service

Bridgestone Off The Road Peru

Min

e Compañía Minera Miski Mayo

Feed Novus Peru

Group Companies and Business Activities in Peru


Growing with Partners

18


Business Strategic Targets in Peru

19


『Business Strategic Targets in Peru』

20

Mineral Resources& Material

Copper Mining Development,

Trading of Copper Metal/

Concentrate

Mobility

Automobile, Tire, Mining &

Construction Machinery , Metro

Transportation Business, Logistic

Business, etc.

Food & Agriculture

Feed and Food Derived,

Bio-ethanol,

Packages , etc.

Infrastructure

Power, Gas Distribution,

Railways, Ports,

Water & Sewerage, etc.

Hydrocarbon Chain

Oil/Natural Gas E&P,

Gas Chemical,

LNG, etc.


Macro External Environment

Growing Economy & Healthy Economic Fundamentals

• Sovereign debt rating is getting higher (equal to Mexico)

• 5.8% of average real GDP growth rate in the last 10 years, notoriously high in South America

Stable & Expanding Business Environment

• Expansion of FTA, Development of regional economic integration (APEC, Pacific Alliance, TPP, etc.)

Population Bonus Supporting the Economy

• Strong expansion of high & middle income group.

• Diffusion of advanced education.• Young population (Mid Age: 27.3 in

2015)

Key Drivers

Secure Natural Resources

Mineral, food, marine, gas,

petroleum, etc.

Oligopolization

Progress of alliance

Emergence of big players

(local + intra region)

Business Expansion in the Region

Reciprocal penetration to

neighbor markets (Pursue for

volume and efficiency)


『Business Image with Clear Growth Path』

22

Businesses Expanding to

Regional Markets

Growing Sectors &

its Related Businesses

Businesses with Potential to

Become No. 1 or No. 2 in Peru


Human Resource Development Cooperation in Peru

23


Branches:83 in nationwide

Students:80,000 approx.

The Biggest and Most Important Institution for

Labor Training

Servicio Nacional de Adiestramiento en Trabajo Industrial


Heavy Machinery Maintenance Career

Human Development Cooperation Program for SENATI

Auto Mechanic Career


Human Development Cooperation Program for SENATI

Objective:

Contribute to Peruvian industry and society through the development/education of young

talented people who aim to be technician and

need economical support.

1st Phase: 120 beneficiaries (Year: 2013-2015)

2nd Phase: 150 beneficiaries (Year: 2015-2017）

Target Courses:

Heavy Machinery Maintenance Course Auto Mechanic Course

Participation of Group Companies: Heavy Machinery Business: KMMP

Automobile Business: MASA

Tire Business: PTS

Scholarship total amount:

200 million yens (approx.)

26


Start of Discussion with SENATI(08/2012)

Signing of Frame Agreement(03/2013)

Ceremony of Presentation of Mitsui Cooperation Program (05/2013)

1. Beginning of Cooperation

SENATI Awarded Mitsui Cooperation (12/2013)

Ceremony for Mitsui Cooperation Program (07/2014)

Presentation of 5th Group of Scholarship Beneficiaries(03/2015)

2. 1st Phase of Cooperation

Discussion with SENATI to Establish 2nd Phase (09/2015)

Signing of Agreement for 2nd Phase(01/2016)

Selection Interview of 6th Group of Scholarship (04/2016)

3. 2nd Phase of Cooperation


4. Graduation of 1st Group Beneficiaries

Number of Graduates：53May 2016


MUCHAS GRACIAS

29

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