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Innovation & Corporate Development Segment
Business Portfolio
ICT business, featuring added value
unique to Mitsui•High-speedInternetinfrastructurebusinessin
emergingeconomies
•Operationofserviceplatformsandservicebusiness,
includingmarketing
•BroadcastingservicesandTVshoppingbusiness
•IoT
•SI,cybersecurity,andcloudservicebusiness
Expanding into new areas by utilizing fi nancial
and logistics expertise to evolve our business•Assetmanagement,leasingandinsurance
•Buyoutinvestmentandventureinvestment
•Commodityderivativesandprovisiontoclientsand
groupcompanieswithhedgingtoolsforpricefluctuationrisks
ofcommodities
•Logisticscenterbusinessincludingwarehousinganddelivery
centersandtheestablishmentandproposaloflogisticsstrate-
giesforclients
Risks and Opportunities
Emerging economies expecting
high growth and new business
Emergingeconomiesareshowinghighgrowthpotentialinthe
ICTbusinessfield,particularlyincommunicationsinfrastructure,
whereexpandedinvestmentisexpected,aswellasintheservice
businessindustry,whichhasalsoseenashiftininvestment.In
addition,suchthingsashigh-speedInternetinfrastructureand
TVshopping,bothwidespreadindevelopedcountries,aregrow-
inginemergingeconomies.
Creating business by capturing ICT innovation
and a change in business model
Therapiddeploymentofsmartphonesandtabletsandtheevo-
lutionofICTinfrastructure,suchascloudcomputing,aredriving
thecreationofavarietyofnewbusinessesthatutilizeIoT
(InternetofThings)andBigData.Businessenvironmentsare
changingrapidly,andasaresult,thereisaneedtotakeswift
actionastechnologicalinnovation,aswellasnewservicesand
businessmodels,leadsthewaytowardanext-generationsociety
inwhichadvancedICTservicesandtherealeconomyareclosely
linked,asdemonstratedbytheoptimalcontrolofinfrastructure.
Expansion of global asset
management business
Giventherecenttrendinwhichcountriesaroundtheworldare
implementingmonetaryeasinginitiativesandenhancingtheir
legalframeworks,Mitsuiisexpandingitsrealestateassetman-
agementbusiness,combiningtheknowledgeoftherealestate
andfinancebusinesses,inbothdevelopedandemergingecono-
miesaroundtheworld.
Supporting corporate growth through the provi-
sion of management know-how and risk capital
Buyoutfundsandotherprivateequityfunds,whichprovide
managementknow-howandfunding,areplayinganincreas-
inglyimportantroleinsupportingcorporategrowth.Moreover,
fromtheviewpointofinstitutionalinvestorslookingtodiversify
investmentriskandinvestmenttargets,privateequityfundsare
expectedtocontinuetobeanattractiveassetclass.
Continued diversifi cation of global logistics
needs due to growth in consumer markets in
emerging economies
WhilelogisticstoandfromJapanaredeclining,intraregional
logisticsandlogisticsinfrastructureareexpectedtoexpand
amongemergingcountriesastheireconomiesandconsumer
marketsgrow.Furthermore,duetothediversificationofcon-
sumerneeds,thereisaneedforvalue-addedlogisticsservices.
IT&CommunicationBusinessUnit CorporateDevelopmentBusinessUnit
ExecutiveManagingOfficer,
ChiefOperatingOfficerof
IT&CommunicationBusinessUnit
NobuakiKitamori
ExecutiveManagingOfficer,
ChiefOperatingOfficerof
CorporateDevelopmentBusinessUnit
YasuyukiFujitani
BusinessOverview
MITSUI&CO.,LTD.ANNUALREPORT201660
Strengths
•Creationofbusinessmodelsthatleverageournetworkof
strongdomesticandoverseaspartners
•DevelopmentofnewbusinessareasthatleverageourcoreICT
subsidiariesandourresultsinventureinvestment
•Nurturingofhumanresourcesinmanagement,investment,
andriskmanagement
Updates of Current Medium-term Management Plan
Participation in TV shopping business in India
InOctober2015,Mitsuicompletedanadditionalinvestmentin
NaaptolOnlineShoppingPrivateLimited(Naaptol),whichoper-
atesaTVshoppingbusinessinIndia(Mitsui’scurrentshareis
approximately25%).Naaptolisaleadingcomprehensivehome
shoppingbusinessoperatorinIndia,whichmanages24-hourTV
shoppingchannels,merchandisingthatleveragesadvertising
networksande-commerce.
TheTVshoppingmarketinIndiaisexpectedtogrowatan
annualaveragerateof45%,anditwillreach¥500billionin
marketsizeby2020.Inthisbusinessenvironment,wedeliver
high-qualityproductstoourcustomersthroughNaaptol,which
supportstheoperationofmultilingualTVshoppingandnation-
widelogisticsnetworks,basedonourknow-howandexpertisein
TVshoppingbusinessesinJapanandChina.
Investment and participation in company
that develops and sells IoT data
management software
Mitsuihasenteredintoastrategicbusinesspartnershipwiththe
U.S.companyOSIsoft,LLC(OSIsoft),whichdevelopsandsells
IoT/M2M(MachinetoMachine)datamanagementsoftwarefor
industrialcustomers.Additionally,inMarch2016Mitsuiacquired
anequitystakeinthecompany.Recently,thereisagrowing
needforoptimizedoperationsthatleverageevenmore
sophisticateddataanalysisandvisualizationaswellas
innovationsinbusinessmodels.PISystem,adatamanagement
infrastructuredevelopedbyOSIsoft,hasahighlevelversatility
thatcancentrallymanageavastamountofoperationaldata,
workingtoimprovecustomers’operationalefficiency,quality,
andsafety,aswellassupporttheirstrategicdecisionmaking.PI
Systemhasbeenintroducedatover1,000electricandutility
companiesaswellasat95%ofmajoroilandgascompanies
aroundtheworld.Throughthisstrategicbusinesspartnership
andinvestment,wewillsupporttheexpansionofOSIsoft’sPI
Systemthroughitsglobalnetworkofaffiliatedcustomersand
businesspartnersandwilllooktodevelopnewIoTsolutionsthat
bridgeourcustomerswithOSIsoftandvariouspartners.
Initiatives in domestic buyout fund
InSeptember2015,Mitsuiestablishedtheprivateequityfirm
MSDInvestmentsLtd.(MSDInvestments)incollaborationwith
SumitomoMitsuiBankingCorporationandtheDevelopment
BankofJapanInc.Mitsuiinvested¥10billioninafundmanaged
byMSDInvestments,whichhasbegunoperations.
ManycompaniesinJapantodayfaceachallengingeconomic
environmentandawiderangeofmanagementproblems,
includingintensecompetitionindomesticandoverseasmarkets
aswellasbusinesssuccessionissues.Asastrategicpartnerwith
along-termoutlook,MSDInvestmentswillleveragethebroad
rangeofnetworksandbusinessknow-howpossessedbyits
threesponsorstorealizetheself-relianceandsustainabilityofits
portfoliocompanies.Inthisway,MSDInvestmentswillassist
thesecompaniesinadvancingtothenextphaseofgrowth.
MitsuiwilldrawuponitsexpansivenetworkbothinJapan
andoverseas,aswellasthebusinessmanagementknow-howit
hascultivatedovertheyears,tocontributetothegrowthofthe
portfoliocompaniesofMSDInvestmentsbysupportingtheir
globalexpansionandimprovingtheirmanagement.
ProgramshootingimageatNaaptol
Iron&Steel
Products
Mineral&Metal
Resources
Machinery&
Infrastructure
Chemicals Energy Lifestyle Innovation&
Corporate
Development
Americas Europe,
theMiddleEast
andAfrica
AsiaPacific
MITSUI&CO.,LTD.ANNUALREPORT2016 61
• Manyyearsofexperienceininvest-
ingintheUnitedStates,anincuba-
tioncenterfornewbusinesses
• Widerangeofbusinessactivities
withdeeprootsinSouthand
CentralAmerica
• Diversehumanresourceswith
strongrootsintheregion
• FastgrowingmarketssuchasTurkey,AfricaandtheMiddleEast
• Abilitytostructureprojectsinnewbusinessfieldsbasedon
relationshipswithtrustedleadinglocalpartnersestablished
overtheyears
• Diversehumanresourcesstronglyrootedinthelocalcommu-
nitiesthatenableustouncoverinnovativebusinessactivities
thatengagedistinctiveregionalcharacteristics,andpromptly
reacttochangesinthelocalbusinessenvironments
• Countriesandregionswhereeconomies
arecontinuingtogrowmarkedly
• Relationshipswithtrustedleadinglocal
partnersestablishedovertheyears
• Diversehumanresourceswithstrongroots
intheregion
StrengthsintheThreeOverseasRegionalSegments
©dgordonphotography
AmericasSegment
EMEA(Europe,theMiddleEastandAfrica)Segment AsiaPacificSegment
BusinessOverview
MITSUI&CO.,LTD.ANNUALREPORT201662