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- Mitsui & Co., Ltd.
Corporate Communications Division
Shizuoka, November 29, 2007 - Yamaha Motor Co., Ltd. and Mitsui & Co., Ltd. established Yamaha Motor Middle Europe B.V. (YMME), a new, joint venture sales and marketing company within Europe on November 28. YMME will officially commence operations on January 1, 2008.
Yamaha Motor Europe N.V. (YME), a wholly-owned subsidiary of Yamaha Motor Co., Ltd. with responsibility for Yamaha Motor's sales across Europe, contributed 60% of YMME's capital of 18,000 euros, while Mitsui Automotive Europe B.V. (MAE), a wholly-owned subsidiary of Mitsui & Co., Ltd. with responsibility for Mitsui & Co.'s automobile sales in Europe, contributed the remaining 40%. YMME is established in the premises of YME in Schiphol-Rijk, the Netherlands.
YMME will seek to combine the strengths of Yamaha Motor and Mitsui & Co. to achieve synergistic results across a vast market covering seven European countries, looking to grow business in Germany and the UK-two of Europe's key markets-while strengthening the group's structure in Eastern Europe, where significant growth is forecasted.
In addition to Germany and the UK, YMME oversees sales and marketing activities in Austria, Hungary, the Czech Republic, Slovakia, and Poland, and integrates management by making the following six sales companies into subsidiaries:
* Equity ratio prior to establishment of YMME
** In January 2008, Mitsui Motor Polska Sp. z o.o. will change its name to Yamaha Motor Polska Sp. z o.o. (YMPL).
In the 1970s, Yamaha Motor and Mitsui & Co. established companies in Germany and the UK to import and sell Yamaha Motor products under the latter's leadership. Drawing from Mitsui & Co.'s strength as a global trading company, the two organisations subsequently developed sales operations focusing on all Yamaha Motor products. In Eastern Europe, where expanding economies opened their markets in the early 1990s, the two companies each developed businesses such as Yamaha Motor in Austria, Hungary, the Czech Republic, and Slovakia, and Mitsui & Co. in Poland.
With the establishment of YMME, Yamaha Motor, as a Motorcycle, Marine and ATV manufacturer, will take the initiative in these key European markets, where competition has been intensifying in recent years, seeking to further expand sales and the Yamaha brand.
Specifically, the two companies aim to expand business in Europe by drawing upon Yamaha Motor's strength in marketing new and existing products by proactively adapting to future needs including network development, while leveraging Mitsui & Co.'s strength in areas such as finance and logistics. YMME expects to achieve sales of 450 million euros (approx. 70 billion yen) in its first fiscal year (2008).
|Location||Schiphol-Rijk, Netherlands (within YME premises)|
|Foundation||November 28, 2007|
|Start of operation||January 1, 2008|
|Headed by||Shigeo Hayakawa, President|
|Capital||18,000 euros (approx. 2.9 million yen)|
|Capital ratio||60% by Yamaha Motor Europe N.V. (wholly-owned by Yamaha Motor Co., Ltd.); 40% by Mitsui Automotive Europe B.V. (wholly-owned by Mitsui & Co., Ltd.)|
|Sales||450 million euros (estimate for FY2008; approx. 70 billion yen)|
|Number of employees||7|
|Areas of business||Management of the companies in Germany, UK, Austria, Hungary, Czech Republic and Poland.|
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
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