Mitsui & Co.,ltd · TSE:8031
Mitsui & Co.,ltd — Investor Day (2024)
38 slides from Mitsui & Co.,ltd's investor day presentation, 2024
Slide 1: Mitsui & Co. Investor Day 2024: Growth Strategy
Mitsui & Co. Investor Day 2024 Growth Strategy Representative Director, President and Chief Executive Officer Kenichi Hori Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED. MITSUI&CO.
Slide 2: Growth Strategy Framework
Growth Strategy Framework > Investments for growth Generate cross-industry premiums by forming business clusters in familiar areas of business and their adjacent domains e Pursue strategic initiatives in growth areas with substantial upside potential, while effectively managing highly scarce goods a
Slide 3: Enhancement of Business Portfolio and Asset Recycling
Enhancement of Business Portfolio and Asset Recycling > @ Improving and expanding the business portfolio through continuous asset reconfiguration Business portfolio improvement Continuous asset reconfiguration © Stronger focus on portfolio review Priorities Management selection of investments and di
Slide 4: Strengthening our Global Earnings Base
4 Strengthening our Global Earnings Base A @ Progress in expansion of earnings base in each region, building a globally diversified business portfolio @ Leveraging our global matrix structure to identify business opportunities and manage risk 1,063.7 snspy Asia Pacific 418.5 enspy 46x Americas 27% F
Slide 5: Growth Driver: LNG
Growth Driver E] LNG > MITSUI&.CO. @ Track record: Expanded earnings base building upon globally diversified LNG business portfolio @ Growth strategy: Further expansion of LNG earnings base, leveraging partnerships and comprehensive strengths LNG business Equity share of LNG production capacity ay A
Slide 6: Growth Driver: Mobility
Growth Driver Mobility > @ Track record: Achieved global business expansion by leveraging our solid relationships with leading partners in respective industries @ Growth strategy: Enhance competitiveness of existing businesses through middle game initiatives and form business clusters through growth
Slide 7: Growth Driver: Protein and Healthcare
4 Growth Driver @ Protein and Healthcare > @ Protein: Acquired core assets in shrimp and chicken businesses. Synergy creation and value enhancement of the entire cluster, combining with feed and breeding @ Healthcare: 5x EBITDA growth in IHH since investment. Continued expansion and competitiveness
Slide 8: Growth Driver: Protein and Healthcare
Growth Driver @ Protein and Healthcare > @ Protein: Acquired core assets in shrimp and chicken businesses. Synergy creation and value enhancement of the entire cluster, combining with feed and breeding @ Healthcare: 5x EBITDA growth in IHH since investment. Continued expansion and competitiveness en
Slide 9: Growth Driver: Protein and Healthcare
4 Growth Driver @ Protein and Healthcare > @ Protein: Acquired core assets in shrimp and chicken businesses. Synergy creation and value enhancement of the entire cluster, combining with feed and breeding @ Healthcare: 5x EBITDA growth in IHH since investment. Continued expansion and competitiveness
Slide 10: Continuous Enhancement of Shareholder Returns
Improvement of Corporate Value and & Continuous Enhancement of Shareholder Returns “ees @ Continue to improve corporate value and enhance shareholder returns through execution of our growth strategy Shareholder returns outlook as a % of Core Operating Cash Flow Bn JPY) y ey over 45% (Yen) 800 700 |
Slide 11: Sustainable ROE Growth
> MITSUI&CO Sustainable ROE Growth Representative Director, Senior Executive Managing Officer (ee) Tetsuya Shigeta Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Slide 12: Operating Environment
Operating Environment > » ‘ P eine Navigating a chan + Eee cia i eopolitical environment changes bine we : Volatility in in nterest rates, exchange rates, and comme adi ity prices UA sa > Changes in supply.chains" Ld r The need for solutions o social issues > Stable supply of energy and resources >
Slide 13: Continuous Enhancement of Base Profit
y > Continuous Enhancement of Base Profit rcereeo Driving forward Business portfolio middle game initiatives =k SE transformation _ + Investments for growth in familiar areas of business and formation of business clusters + Continuous business portfolio reconfiguration + Realization of intrinsic val
Slide 14: Track Record of Enhancing Base Profit: Mineral & Metal Resources Segment
> Track Record of Enhancing Base Profit | Minerals metal Resources Segment woremnco @ Sustainable growth achieved through volume expansion and investment in mining infrastructure @ Further reinforcement of earnings base through accumulation of high quality natural resource assets Mineral & Metal Res
Slide 15: Track Record of Enhancing Base Profit: Energy Segment
> Track Record of Enhancing Base Profit | enersy segment poreureca @ Despite lower oil prices, improved portfolio quality through timely expansion of LNG business and trading @ Anticipating growth through smooth launch of projects such as Ruwais LNG and shift to next-gen fuels Energ Segment results
Slide 16: Track Record of Enhancing Base Profit: Innovation & Corporate Development Segment
Tra ck Reco rd of E n h an ci n g Base Profit | Innovation & Corporate Development Segment <4 @ Driving forward middle game initiatives at core affiliated companies in Japan @ MITSUI KNOWLEDGE INDUSTRY (MKI, now wholly owned) constantly growing since takeover bid in FY March 2015 @ Reproducible grow
Slide 17: Investment Track Record
Investment Track Record Review of investments and loans Hurdle rate RR 10% or higher (USD basis, after tax) late of return on investments, loans, and guarantees Risk-return ratio Strategic importance, competitiveness Familiar Scarcity areas of business Business Timing of cluster earnings Strategy co
Slide 18: Asset Portfolio Review: Supporting Cash Generation
Asset Portfolio Review: Supporting Cash Generation > Asset Portfolio Review @ Start Fiscal year Throughout fiscal year © Follow-up of projects planned for exit in previous fiscal year @ Policy for the current fiscal year’s asset portfolio review © Report on asset portfolio review results (appropriat
Slide 19: Track Record of Cash Generation
y Track Record of Cash Generation <4 MITSUI&CO @ Driving Business Portfolio Transformation through reallocation of management resources to growth areas censPy) Asset Recycling (en.ey) 200 600 Hl Investment cash inflows (right scale) ™®) Gains on asset recycling (left scale) 400 100 0 i. FY March | F
Slide 20: Strengthening of Financial Position
4 Strengthening of Financial Position > @ Introduced a financial strategy of positive cash flow after shareholder returns since MTMP 2017 @ Net DER decreased significantly from 0.9x to 0.4x, allowing flexibility in capital allocation MTMP MTMP MTMP MTMP 2026 2017 2020 2023 FY March 2024 Level of cas
Slide 21: Conclusion
Conclusion Enhancing base profit * Driving forward middle game initiatives * Transformation of business portfolio * Optimization of management resource allocation * Investment discipline > MITSUI&CO - ROIC-oriented management - Business cluster formation in familiar areas of business * Balance sheet
Slide 22: Appendix
MITSUI&CO Appendix
Slide 23: Appendix 1: Track Record of Large-scale Projects
Appendix 1: Track Record of Large-scale Projects (since beginning of MTMP 2020) sareursco Investments, loans and Contribution to Vs. Announcement Project" guarantees (en PY) profit’? (an spy) initial assumption Current status 2017 Sep Additional isition of Penske Truck Leasin A 139.7% 28.4 Outperfor
Slide 24: Appendix 2: Dividend Income from Equity Method Investees
> Appendix 2: Dividend Income from Equity Method Investees vareuteeo Profit (loss) from equity method investments and equity method dividend cash flow (Bn JPY) (dividend recovery ratio) 600 ® Profit (loss) from equity method investments ® Equity method dividend cash flow 500 ra : Approx. © Dividend
Slide 25: Global Energy Transition
a MITSUI&.CO. Pe eee tihos SWALLOW MARVEL SW
Slide 26: Global Energy Transition Initiatives
> Global Energy Transition Initiatives weraraca @ Building a portfolio resilient in various scenarios and responsive to sways in climate change and energy demand Strategic projects based on over of entire value chain Projects with downside resilience and future upside potential Projects contributing
Slide 27: Positioning of LNG in the Energy Transition
Positioning of LNG in the Energy Transition > @ Among primary energy sources, renewable energy and natural gas forecast to grow in foreseeable future @ Natural gas and LNG re-evaluated as important stable fuels to meet needs of rising power demand from AI Primary Energy Consumption Outlook Medium- t
Slide 28: Globally Diversified Natural Gas and LNG Portfolio
Globally Diversified Natural Gas and LNG Portfolio > @ Existing projects: Realization of upside potential and strengthened downside resilience through increased competitiveness and expansion @ Strengthening earnings base through steady launch of projects under development LNG business Equity share o
Slide 29: Developing the Gas Value Chain
Developing the Gas Value Chain A @ Contributing to stable supply of energy through competitive gas/LNG supply and power generation, based on upstream natural gas/LNG project interests, LNG purchase agreements Mitsui’s gas value chain from upstream to downstream Upstream natural Liquefaction Thermal
Slide 30: LNG Trading Portfolio
LNG Trading Portfolio <a @ Providing stable supply capability and demand/supply adjustment functions through diversified LNG supply sources, expansion of fleet, and optimization of operations LNG supply source Long-term charter vessels FY March 2025 Trading volume” 1 0 Mn tons/ 2 Mn tons/ 8 1 1 year
Slide 31: Ruwais LNG
Ruwais LNG > @ Expanding long-term stable earnings base by building up LNG business and LNG trading portfolio Strategic partnership with ADNOC and global energy majors e Trusting relationship with ADNOC cultivated over 50 years through ADNOC LNG investment and operation e Strong partnerships with bp
Slide 32: Low-carbon Measures in LNG Projects
Low-carbon Measures in LNG Projects @ We aim to ensure sustainable competitive advantage by taking measures to address GHG emissions Measures to address GHG emissions in each process Upstream gas development @CCS/CCUS © RNG" production power @ CCS/CCUS Procuring RE Power QatarEnergy LNG N (3) , ADNO
Slide 33: Clean Ammonia: Building a Value Chain
> MITSUI&.CO. Clean Ammonia: Building a Value Chain @ Steady progress on projects through collaboration with strategic partners such as ADNOC in Abu Dhabi and CF Industries in N. America @ Combining cross-industry track record and expertise between Energy and Chemicals, and Mobility business units P
Slide 34: CCS and CCUS Initiatives
CCS and CCUS Initiatives > @ Globally examining the development of CCSaaS business model Approx. 15 Mn tons/year by 2035* @ Acorn Ccs . . on _ @Hackberry CCS @ CCS value chain business development in Asia and Oceania @ Corpus Christi CCS Arthit Gas Field CCS @ . @ Malay Peninsula Southern Offshore C
Slide 35: CCSaaS Initiatives
CCSaasS Initiatives > MITSUI&.CO. @ Asa storage operator, working with industrial players to build CCS value chain in Japan and Malaysia Together with partners Geological knowledge, relationships with local government in Malaysia CCS project development experience in Europe ‘TotalEnersies > MiTsurEc
Slide 36: Outlook for Global Energy Transition
y Tmage supplied by REN: a Outlook for Global Energy Transition sores @ Growth in natural gas and LNG will be driving force for the foreseeable future @ Growth expected in shift to electrification, next-gen fuels, renewable energy and power trading, and carbon management Profit (Bn JPY) 270 AO! yA0)
Slide 37: A Cautionary Note on Forward-Looking Statements
> MITSUI&CO A Cautionary Note on Forward-Looking Statements This material 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 simply reiterations of histori
Slide 38: 360° business innovation.
360° business innovation. MITSUIECO.