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Mitsui to Participate in a Food Service Business in China

Feb. 16, 2015


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Masami Iijima) is to acquire approximately 25% of equity in Beijing Sanyuan Catering Management Co., Ltd. of China ("BJSY", Head Office: Beijing, Chairman: Jian Shixin), and has entered into an agreement with the company for the underwriting of a new share issue and the transfer of equity. BJSY is a new company established by Beijing JLY Catering Management Co., Ltd. of China ("JLY", Head Office: Beijing, Chairman: Jian Shixin) in response to Mitsui's aforementioned investment. JLY operates a catering business servicing business corporations, hospitals, schools, and other organizations in China, and BJSY succeeds to all of the operations being conducted by JLY.

Business needs in China are diversifying, in part because of an influx of foreign-owned companies, and there is growing demand for outsourcing services because of the potential for improved management efficiency and other benefits. One area that has shown conspicuous market expansion is the food service industry. The pace of growth is expected to accelerate with the increasing emergence of new business needs resulting from employee welfare improvements and other factors.

JLY was founded in Qingdao City, China, and is now based in Beijing. It has developed its business activities primarily in northern and northeastern China and is also building a presence in central and inland regions. The company provides food services primarily to leading companies in each region, including Chinese state-owned and private enterprises and major foreign-owned manufacturers, as well as hospitals and schools. BJSY succeeds to all of such business from JLY, as well as the business creed that JLY has maintained, which demands consistent food safety and uncompromising service quality. BJSY will continue to contribute to food safety and efficient business management in China through food service business.

Mitsui has been involved in the Japanese food service industry for over 38 years through affiliated company and has steadily expanded the scope of its activities in this area. Mitsui's participation in BJSY reflects the positioning of the food service business in emerging countries as a priority area under a new growth strategy following on from the development of its food service activities in Japan. Mitsui aims to accumulate operational and management know-how about the Chinese food service business, and to create new service business in peripheral areas. Mitsui also aims to form projects and seeks equity participation in the food service industries with local partners in other emerging countries.

Profile of BJSY

Name of Company Beijing Sanyuan Catering Management Co., Ltd.
Head office Beijing, China
Establishment January, 2015
Shareholders Jian Shixin: 55.3%, Gai Shue: 19.3%, Mitsui: 25.4%
Business activities Provision of food services to business corporations, hospitals, schools, etc.

Profile of JLY

Name of Company Beijing JLY Catering Management Co., Ltd.
Head office Beijing, China
Establishment 2001
Representative Jian Shixin (Chairman)
Employees (as of Dec. 2014) Approx. 3,300
Net sales (year ended Dec. 2014) Approx. 388 million yuan (approx. ¥7,300 million)
Shareholders Jian Shixin: 77.5%, Gai Shue: 22.5%
Business activities Provision of food services to business corporations, hospitals, schools, etc.

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.
Corporate Communications Division
Tomomi Taura
Telephone: +81-3-3285-6645
Facsimile: +81-3-3285-9819