- Establish a profit base resilient to external changes and risks
- Dynamic allocation of resources
- Strengthen our management foundation
Gate 3 Medium-term Management Plan
Under the previous medium-term management plan, Driving Value Creation, Mitsui set four key initiatives in line with its vision of “A pool of diverse professionals that take the initiative to create new business and actively leverage the Mitsui Group’s comprehensive strengths and global network for sustained creation of new value.”
Mitsui broadly achieved its initial targets for core operating cash flow and ROE by enhancing its ability to steadily generate cash and by improving capital efficiency.
In the fiscal year ended March 31, 2020, Mitsui failed to attain its target for profit for the year, owing mainly to impairment losses on assets related to oil and gas development, among others.
In the Company’s core areas of Mineral & Metal Resources, Energy, Machinery & Infrastructure, and Chemicals, Mitsui steadily expanded the profit base through bolt-on investments, operational improvements, portfolio optimization including recycling, and reinforcing trading functions. In the Company’s growth areas of Mobility, Healthcare, Nutrition & Agriculture, and Retail & Services, we allocated management resources targeting Asia, with its growing middle class, and North America, with its constantly growing economy, thereby promoting the expansion of our businesses.
In the fiscal year ended March 31, 2020, Mitsui endeavored to strengthen the foundations of businesses related to the environment and health. In addition, Mitsui aimed to expand and horizontally develop peripheral businesses.
|Mineral & Metal Resources||
Coal handling and preparation plant at Grosvenor coal mine
Crude oil processing facilities at Tempa Rossa in Italy
|Machinery & Infrastructure||
In June 2019, Mitsui made a final investment decision for the Mozambique Area 1 LNG project, in which its affiliated company has a 20% interest. It is an integrated upstream-midstream project that encompasses all stages from natural gas production and liquefaction to LNG shipment. In September 2019, we made a final investment decision for the Arctic LNG 2 project in Russia, in which we have a 10% interest with Japan Oil, Gas and Metals National Corporation (JOGMEC). Through these projects, we will contribute to the reliable supply of energy to Japan and the rest of the world.
Arctic LNG 2 plant in Russia
In May 2019, Mitsui acquired approx. 35% of the shares in Minh Phu Seafood Joint Stock Company (“Minh Phu”), one of the world’s biggest shrimp producers. Through the strength of vertical integration, from shrimp farming to processing and sales, Minh Phu exports shrimp products to 50 countries including the U.S. and Japan. In 2013, Mitsui invested in Minh Phu Hau Giang Joint Stock Company, one of Minh Phu’s processing factories. Mitsui intends to expand sales for Minh Phu through its global sales network.
Shrimp farming (black tiger shrimp)
Under the previous medium-term management plan, Mitsui steadily expanded the profit base in core areas, centered on Mineral & Metal Resources and Energy, in addition to strengthening non-resource areas, especially Machinery & Infrastructure and Lifestyle. Furthermore, the Company expanded the business base with an emphasis on the environment and health. To achieve medium- to long-term improvement in corporate value, as explained on page 4, in the new medium-term management plan, Mitsui will pursue key initiatives to address issues that became more apparent during the previous medium-term management plan.
* Please view the table below while scrolling horizontally.
|Unit: ¥ billion||Cumulative results
for FY March 2018
to FY March 2019
FY March 2020
for the last three years of
the previous medium-term
(a) + (b)
|Review of three-year
in May 2017)
|Cash-In||Core Operating Cash Flow*1 ||1,240.0||620.0*2||1,860.0*2||1,700.0|
|Asset Recycling ||530.0||250.0||780.0||700.0|
|Cash-Out||Investment and Loans ||(1,490.0)||(420.0)||(1,910.0)||(1,700.0)–
|Shareholder Returns ||(310.0)||(200.0)*3||(510.0)||(300.0)|
|Free Cash Flow*3 after Shareholder Returns*4  +  +  + ||(30.0)||250.0*2||220.0*2||200.0–
From a foundation in core areas and growth areas, we strove to strengthen and expand under the previous medium-term management plan. Mitsui will now enter the next stage, creating a robust cash generation capability, even in uncertain business conditions, while honing this foundation and thoroughly managing risks. In addition to ongoing issues from the previous medium-term management plan, we will address new issues that have emerged as a result of the COVID-19 pandemic.