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Participation in power generation and power/gas retail business in Australia

Oct. 8, 2013


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President & CEO: Masami Iijima), has agreed with GDF SUEZ S.A. ("GDF SUEZ"), to invest in its subsidiary International Power (Australia) Holdings Pty Ltd ("IPAH"), which owns and operates the power generation business as well as the power and gas retail business in Australia ("Project"). Mitsui will, by way of share subscription through its subsidiary to be newly established, acquire a 28% equity stake in IPAH.

The Project comprises 4 generation plants with capacity totaling 2,604MW, as well as the power and gas retail business which has over 350,000 customers (both residential and business) largely based in the states of Victoria and South Australia. The power generation unit sells its output to Australia's National Electricity Market, including Simply Energy, the power retail unit of IPAH. The Project represents the first example of participation by Mitsui in a vertically integrated power business.

Mitsui and GDF SUEZ already collaborate in the Australian power generation sector via IPM Eagle LLP, a joint venture established in 2004. As a result of the Project, Mitsui now has an equity interest in all of the power business operated by GDF SUEZ in Australia, with a total generation capacity of 3,748MW. This portfolio makes GDF SUEZ and Mitsui the largest power producer in Victoria and the fourth largest in Australia, by power production. The companies intend to co-develop new power business in Australia through IPAH. The Project also strengthens the global partnership between GDF SUEZ and Mitsui, which covers power generation and LNG export businesses across 12 countries worldwide. It signals the ambition of both companies to develop existing assets and expand their cooperation around the world.

Mitsui believes this investment will contribute to the stability and ongoing diversification of power supply in Australia. In parallel, Mitsui will seek to maximize the value of IPAH with its recognized strengths in financing, a large local customer base and EPC experience in the Australian power sector. In addition, Mitsui hopes to leverage IPAH's experience operating in Australia's highly deregulated electricity market, by promoting electricity retail business, energy efficiency and environmentally-conscious smart city development in Japan and other countries.

Closing of the transaction is expected to occur during October 2013, upon satisfaction of certain conditions, including obtaining approvals from Australian regulatory authorities.

IPAH

Company International Power (Australia) Holdings Pty Ltd
Ownership Mitsui 28%
GDF SUEZ 72%
Head Quater Melbourne, Australia
President Alex Keisser (CEO)
Business Power generation, power and gas retail services
Foundation June, 2003

Project List

Please scroll horizontally to look at table below.

Name Asset type Location (*1) Capacity (*2)
Hazelwood Coal mine and coal-fired power plant VIC 1,675MW
Synergen Gas/Light oil fired power plant SA 396MW
Pelican Point Combined-cycle gas fired power plant SA 487MW
Canunda Wind power plant SA 46MW
Simply Energy Power and gas retail VIC (*3) -
    Total 2,604MW

(*1) VIC: Victoria, SA: South Australia
(*2) Gross output
(*3) Head Quarter

GDF SUEZ

Company GDF SUEZ S.A.
Head Quarter Paris, France
President Gerard Mestrallet (Chairman & CEO)
Business Power, natural gas and energy services
Foundation July 2008

Asset Location

Asset Location

Pelican Point Combined Cycle Gas-Fired Power Station

Pelican Point Combined Cycle Gas-Fired Power Station

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9821
infoTKADZ@mitsui.com
Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819