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Gate 3 Medium-term Management Plan

Innovation & Corporate Development Segment

TV shopping / QVC Japan, Inc . (Japan)

TV shopping / QVC Japan, Inc . (Japan)
©QVC Japan, Inc.

  • IT & Communication Business Unit
  • Corporate Development Business Unit
Business Activities

Through our ICT, finance and logistics business, we work on a diverse range of projects aimed at developing innovative business and expanding our business field. At the same time, we promote efforts to strengthen our earnings base by exploring strategic projects that lead to new business areas, and providing specialized functions on a global basis.

  • Masahiro Moriyasu Managing Officer, Chief Operating Officer of IT & Communication Business Unit

    Masahiro Moriyasu Managing Officer,
    Chief Operating Officer
    of IT & Communication
    Business Unit

  • Shinichi Kikuchihara

    Shinichi Kikuchihara Managing Officer,
    Chief Operating Officer
    of Corporate Development
    Business Unit

Business Environment

  • Initiatives are underway to connect to services with a diverse range of data being generated in digital society.
  • Needs are growing for digital infrastructure to accommodate the increase in data traffic, in addition to the increasing needs for contactless services.
  • Functions of insurance risk management are becoming more important due to an increase in natural disasters, alongside growing business opportunities for environmental derivatives.
  • It has become harder to hire domestic workers, and rising personnel costs have increased the need to seek out greater efficiency with robotics.

Progress under Previous Medium-term Management Plan (top) and Targets in Medium-term Management Plan 2023 (bottom)

  • Solid performance at major domestic affiliated company, including MITSUI KNOWLEDGE INDUSTRY CO., LTD., which posted record-high profits. Promoted the hiring and training of young managers
  • Progressed domestic real estate business steadily, participated in buyouts in Japan and Asia. Enhanced functions of Corporate Development Division
  • Reinforce existing businesses, centered on major domestic affiliated companies in Japan, create new businesses, co-create with other divisions through ICT
  • Create new value by combining knowledge in financing, real estate and logistics businesses with groupwide experience and networks

Individual Strategies

Area Our Approach
ICT
  • Further strengthen profit base of major domestic affiliated companies such as MITSUI KNOWLEDGE INDUSTRY CO., LTD. and Mitsui Bussan Electronics Ltd.
  • Create new businesses using new technologies and business models
  • Strive to create new businesses and facilitate digital transformation by pairing together knowledge of industry and business from other business units with knowledge in the ICT area
Corporate Development
  • Thoroughly strengthen existing businesses, such as by reinforcing relationships with existing customers, expanding the customer base, strengthening the management foundation, including IT, and improving functions
  • Implement initiatives for value improvement in real estate and real state development responding to the needs of regions and fields, while progressing procurement, development including redevelopment, and realization of profits.
  • Contribute to our business transformation and expand the pool of management talent while continuing to assign employees to management positions at companies in which we have invested

Impact from COVID-19 and Response Policies

  • Suspension of operation and transportation, decline in sales due to weaker demand and rental income in real estate, suspension of fund launches as well as asset recycling.
  • Demand increase in some businesses led by stay-at-home demand.
  • Pursue sales activities and improve business efficiency through using IT, and enhance investment discipline.

Major Businesses

MITSUI KNOWLEDGE INDUSTRY CO., LTD., Mitsui Bussan Electronics Ltd., Mitsui Bussan Secure Directions, Inc.

MITSUI KNOWLEDGE INDUSTRY establishes corporate systems and networks and provides cloud and other services. Mitsui Bussan Electronics engages in the development and sale of IoT solutions and sales of semiconductor related products. Mitsui Bussan Secure Directions provides cyber security services. Centered on these three companies, we promote ICT-related businesses in Japan. Also, MITSUI KNOWLEDGE INDUSTRY and Mitsui Bussan Electronics began talks about a merger in April 2021 with the aim of leveraging business synergies and creating new customers.

MITSUI KNOWLEDGE INDUSTRY CO., LTD., Mitsui Bussan Electronics Ltd., Mitsui Bussan Secure Directions, Inc.

QVC Japan, Inc.

Television shopping company in Japan that operates under the U.S.-based Qurate Retail Group.

World Hi-Vision Channel, Inc.

Since 2007, World Hi-Vision Channel has been operating “BS12TwellV,” a 24/7 free-to-air BS channel.

MBK Real Estate LLC

MBK Real Estate (“MRE”) entered into the senior living properties business in the U.S. in 1990. The company now owns 33 properties with approximately 3,600 units. In January 2020, a private fund was launched for Japanese investors for the investment in senior living properties in the U.S. MRE aims to expand income-generating businesses, such as fund management revenue, by adding a private fund to its exit strategies.

Hillcrest of Loveland is the fund’s first flagship property, located in Denver, Colorado.

MBK Real Estate LLC

Initiatives in Buyout Fund Businesses

Mitsui has been operating buyout fund businesses in Japan, through MSD Investments Ltd., and in Asia, through collaboration with Advantage Partners, LLP. We also invested in Ant Capital Partners Co., Ltd. In the fiscal year ended March 31, 2020, Mitsui participated in a buyout fund operating company located in Germany.

New Initiatives

Dynamic Plus Co., Ltd.

Established in 2018, Dynamic Plus provides dynamic pricing services, which set flexible prices based on demand projections created with AI and big data, for services such as hotel, deliveries and tickets for sporting events such professional baseball and J-League soccer matches, and entertainment tickets such as for concerts.

Dynamic Plus Co., Ltd.

DouYu Japan Inc.

DouYu Japan is a joint venture with DouYu, a major live streaming service provider in China. It operates the live streaming service Mildom in Japan. The company aims to create a comprehensive platform for live streaming services, including real-time gameplay.

+Automation Inc.

+Automation was established jointly with GLP Japan Inc. in 2019. Using sorting robot systems made by China’s Zhejiang Libiao Robotics Co., Ltd., +Automation is developing Robotics as a Service businesses for automating logistics facilities.

Zhejiang Libiao Robotics Co., Ltd.’s sorting robot systems at work in a logistics center

Zhejiang Libiao Robotics Co., Ltd.’s sorting robot systems at work in a logistics center

Major Subsidiaries & Associated Companies

QVC Japan, Inc.
Businesses TV shopping using a 24-hour dedicated channel
Ownership
Interest (%)
40.0
Annual
Earnings
(¥ billion)
18/3   5.2
19/3   5.3
20/3   5.4
MITSUI KNOWLEDGE INDUSTRY CO., LTD.
Businesses Planning, development and sales of information and communication systems
Ownership
Interest (%)
100.0
Annual
Earnings
(¥ billion)
18/3   2.1
19/3   3.5
20/3   4.2
JA Mitsui Leasing, Ltd.
Businesses Leasing and financing business
Ownership
Interest (%)
31.4
Annual
Earnings
(¥ billion)
18/3   4.0
19/3   3.8
20/3   3.9
Mitsui & Co. Global Logistics, Ltd.
Businesses Domestic warehousing businesses and international integrated transportation services
Ownership
Interest (%)
100.0
Annual
Earnings
(¥ billion)
18/3   2.3
19/3   2.3
20/3   2.9
Mitsui & Co. Real Estate Ltd.
Businesses Real estate sales, leasing, management and consulting
Ownership
Interest (%)
100.0
Annual
Earnings
(¥ billion)
18/3   2.8
19/3   2.6
20/3   1.5
Mitsui & Co. Asset Management Holdings LTD.
Businesses Real estate asset management
Ownership
Interest (%)
100.0
Annual
Earnings
(¥ billion)
18/3   2.0
19/3   1.9
20/3   1.9