Shinji Kowase, Mitsubishi - Asia Business Week Dublin

ASIA BUSINESS WEEK DUBLINFourth EU Asia Top Economist Round Table

6 June 2014

Why Japanese Companies continue to invest in Europe

Shinji Kowase

Director, Chief Administration Officer

Mitsubishi Corporation International (Europe) Plc

Kindly sponsored by:

“Why Japanese Companies continue to invest in Europe”

June 6, 2014

Shinji KowaseDirector, Chief Administration OfficerMitsubishi Corporation International (Europe) Plc

Overview

Proprietary & Confidential 3

Date Established:July 1, 1954 (Date Registered: April 1, 1950)

7 business groups (trade with approx. 10,000 companies worldwide)

Over 200 Offices & Subsidiaries in approximately 90 countries

More than 600 group companies

More than 60,000 employees (parent company: approx. 6,000)

Capital: ¥204.4 billion yen

Operating transactions of 22 trillion yen(220 billion USD) (2014)

Consolidated net income of 445.0 billion yen (4.45 billion USD) (2014)

Energy Business Group E&P Business Div.Natural Gas Business Div.Petroleum Business Div.Carbon & LPG Business Div.

Metals GroupSteel Business Div.Mineral Resources Trading Div.Mineral Resources Investment Div. AMineral Resources Investment Div. B

Machinery Group Industrial Machinery Business Div.Ship & Aerospace Div.Motor Vehicle Business Div.Isuzu Business Div.

Phoenix Dept.Saudi Petrochemical Project Dept.Commodity Chemicals Div. ACommodity Chemicals Div. BFunctional Chemicals Div.Life Sciences Div.

Living Essentials Group Living Essentials Group CEO OfficeLiving Essentials Group Administration Dept.Living Essentials Group Information System

Office

Industrial Finance, Logistics & Development GroupAsset Management Business Div.Industrial Finance Div.Real Estate Development & Construction Div.Logistics Div.

Global Environmental & Infrastructure Business Group

Business Service Group

President

Board of Directors Members of the Board : 12 (as of April 1, 2013)

Environmental Business Div.New Energy & Power Generation Div.Infrastructure Business Div.

IT Service Business Div.

Information Systems Development

Dept.

Corporate Systems Development

Dept.

Corporate Staff SectionCorporate Communications Dept.

Corporate Administration Dept.

CSR & Environmental Affairs Dept.

Legal Dept.

Global Human Resources Dept.

Global Strategy & Business Development Dept.

Global Relations Dept.

International Economic Cooperation Dept.

Logistics Management Dept.

Corporate Accounting Dept.

Risk Management Dept.

Finance Dept.

Structured Finance, M&A Advisory Dept.

Investor Relations Dept.

Internal Audit Dept.

Corporate Strategy & Planning Dept.

Global Environmental & Infrastructure Business Group CEO OfficeGlobal Environmental & Infrastructure Business Group

Administration Dept.

Industrial Finance, Logistics & Development Group CEO OfficeIndustrial Finance, Logistics & Development Group Administration

Dept.

Energy Business Group CEO OfficeEnergy Business Group Administration Dept.

Metals Group CEO OfficeMetals Group Administration Dept.

Machinery Group CEO OfficeMachinery Group Administration Dept.

Chemicals Group CEO OfficeChemicals Group Administration Dept.

Global Consumer Business Development Dept.Foods (Commodity) Div.Foods (Products), Retail & Healthcare Div.Textiles Div.General Merchandise Div.

Chemicals Group


Organizational Structure (As of July 1, 2013)

More than 200 Offices & Subsidiaries; over 600 group companies in approximately 90 countries around the world.

●Head Office: Tokyo

●Number of Offices & Subsidiaries in Japan: 29 (including 17 Annexed Offices)

●Number of Offices & Subsidiaries Overseas: 196 (including 31 Project Offices)

*Cities with Offices & Subsidiaries are marked (excluding Project Offices and Annexed Offices in Japan)

MC’s Regional CEOs


Global Network (As of July 1, 2013)

6

Offshore wind farm run by Eneco, MC’s partner in offshore wind farm planned for the Netherlands.

○ Mainly handles trade and related business operations in power generation, water, transportation, and other necessary infrastructure that have a direct impact on our quality of life

○ Active in a number of areas that combat global warming and secure sustainable supplies of energy, including renewable energy and emissions reduction

○ Involved in smart community projects and the manufacture of lithium-ion batteries, essential for environmentally friendly vehicles and electricity storage

Proprietary & Confidential


7Proprietary & Confidential

Submarine Power Transmission 　 (UK & Germany)


9

MC-GS Yuasa joint venture Lithium Energy Japan (LEJ), working with Robert Bosch GmbH on lithium-ion batteries since 2013

■ Lithium Ion Batteries■ Neodymium Magnets■ ESCO* Operations■ District Heat Supply■ Smart Community Development■ Emissions Trading and Other

Operations*ESCO: Energy Service Company

■ Power Generation in Japan and Overseas

■ Onsite (Inside-the-Fence) Power Generation

■ Overseas Power Transmission■ Export of Power Generation and

Transmission Equipment

84MW solar power plant in Lop Buri, Thailand

■ Water and Sewage■ Desalination■ Railway, Harbor, and Airport

Operations■ Petroleum, Gas, and

Petrochemical Equipment, FPSO Chartering

■ Steel, Non-Ferrous Metals, and Cement Plant Equipment

TRILITY Group Pty Ltd, a water and sewage facility in Australia partly owned by MC

New Energy & Power Generation Division

Environmental Business Division

Infrastructure Business Division



10

“Mozo Wondercity” shopping center in Nagoya, Japan


○ Develops the industrial finance business, targeting real assets and businesses that leverage our expertise and global networks

○ Funds industries and provides opportunities for investors to manage their capital by integrating “development & trade”, “ownership & administration”, and “asset management” functions

Industrial Finance, Logistics & Development Group

11

Aircraft leasing business being developed by MC Aviation Partners

Industrial Finance Division

Asset Management Business Division

Real Estate Development & Construction Division

Logistics Division

GYRE, a high-end retail complex managed by an MC subsidiary

Student housing in the U.S. developed by Diamond Realty Investments

Mitsubishi Corporation LT’s Keihin Operations Dept in Yokohama.

■ Asset management for real estate investment funds and

related finance business

■ Other asset management business

■ Infrastructure-related finance business

■ Private equity investment business■ General leasing business in Japan and overseas, including

automobiles■ Airline-related business including leasing of aircraft and

aircraft engines

■ Real estate development

■ Providing construction/real estate solutions

■ International intermodal transport

■ Bulk carrier ownership and operations

■ Solutions business for the logistics sector

■ Logistics consulting


Industrial Finance, Logistics & Development Group

（ CG image ）

12

Oil Exploration, Development and Production Business in Gabon, West Africa


○ Fuels the development of industry and helps to improve the quality of life○ Handles energy in liquid, gas, and solid states, which provide consumers with light, heat and power○ Energy portfolio consists of natural gas (including LNG), crude oil, petroleum products, LPG, petroleum

coke, coal coke and carbon products

Energy Business Group

13

Shale gas fracturing operation worksite.

Main Overseas Projects

LNG Value Chain

Petroleum products produced by Showa Yokkaichi Sekiyu

MC joint venture aluminum smelting plant in Jiangsu, China


Energy Business Group

14

MDP (MC’s subsidiary in Australia) produces 50 million tons of coking coal per year. Proprietary & Confidential

○ Handles a wide range of commodities in ferrous raw materials, steel products and non-ferrous metals

○ Provides global markets with stable, sustainable supplies of high-quality raw materials and products, helping to create more affluent societies

Metals Group

15

MDP (Australia)

Escondida mine (Chile)

Mitsubishi Corporation RtM International Pte. Ltd. (Singapore)

Developments in the Metal Resource Field

Metals Group Value Chain

Metal One (Japan)


Metals Group

16

Forging a sales-oriented value chain and developing sound, locally established motor vehicle businesses including Mitsubishi Motors and Mitsubishi Fuso vehicles in Indonesia, and Isuzu Motors vehicles in Thailand. Proprietary & Confidential

○ Handles a wide range of machinery in four key domains: industrial machinery, shipping, defense and aerospace, and motor vehicles

○ Also handles machine tools, agricultural machinery, construction and mining equipment, elevators and escalators, ships, space-related equipment, automobiles, and other businesses

Machinery Group

17

Industrial Machinery Business Division

Ship & Aerospace Division

Motor Vehicle Business Division

Isuzu Business Division

The Spiral Escalator, produced by Mitsubishi Electric Corporation, installed at The Forum Shops at Caesars in Las Vegas

State-of-the-art deep-sea oil field drilling ship built with finance from MC. (above)High Resolution Imagery Satellite, GeoEye-1 (right)

Motor vehicle business in Indonesia with our partner KTB

New lineup of mainstay pickup trucks (Thailand, November 23, 2012)

■ Export, overseas transactions, and maintenance business for elevators and escalator

■ Sales of industrial and agricultural machinery■ Rental of construction machinery and sales of mining

equipment

■ Transactions in ships, drillships, FPSOs/FSOs, marine equipment, etc.; finance; ship owning and management business

■ Space development & utilization business, and satellite imagery sales business

■ Trading of aircraft and aircraft engines, avionics and onboard equipment for the Japanese Ministry of Defense

■Automobile exports (built-up vehicles, assembly parts, spare

parts)

■Overseas local production and sales business

■Automobile financing business

■ Overseas local production and sales business■ Overseas automobile financing, after-sales servicing and other

related business■ Automobile exports from Thailand and Japan (built-up vehicles,

assembly and spare parts)

©DigitalGlobe, Inc.


Machinery Group

18

Exportadora de Sal, S.A. de C.V. (ESSA) in Mexico, a joint venture between MC and the Mexican government


○ Active in three business segments: Commodity Chemicals (raw materials); Functional Chemicals (downstream production including plastics and electronic materials); and Life-Sciences (develops food sciences, pharmaceuticals and agrochemicals)

Chemicals Group

19

Main Overseas Subsidiaries (Manufacturers)

Chemicals Group Value Chain and Subsidiaries & Affiliates

Chuo Kagaku, a plastic food packaging and container manufacturer in japan

Kirin Kyowa Foods Company, Limited (Japan) provides seasonings and food ingredients

SHARQ petrochemical plant in Saudi Arabia

PC Aromatics produces paraxylene and benzene in Malaysia


Chemicals Group

20

Wholly owned MC subsidiary, Princes Limited, a UK-based food and drink manufacturer and distributor


○ Provides products and services, develops businesses, and invests in various every-day life fields

○ Covers everything from raw materials procurement to goods delivery to consumer market

○ Operations include foods, textiles, daily necessities, healthcare, distribution and retail

Living Essentials Group

Shinji Kowase, Mitsubishi - Asia Business Week Dublin

Presentations & Public Speaking

Transcript of Shinji Kowase, Mitsubishi - Asia Business Week Dublin