Mitsui aims to quickly return to a growth trajectory by steadily executing the strategies outlined in the management plan, despite the likelihood of a decline in short-term profits due to COVID-19.
Gate 3 Medium-term Management Plan
Medium-term Management Plan 2023
—“Transform and Grow”
In line with our renewed corporate management philosophy (MVV) and our Materiality updated in 2019, we have formulated Medium-term Management Plan 2023ー“Transform and Grow,” under which we will contribute to the development of society through our growth as a company, encouraging all of our employees to transform themselves, as well as keeping up with the accelerating pace of change in social needs, such as advances in digital technology and increasing interest in the environment.
Transform and Grow: Six Corporate Strategies
Core operating cash flow
Profit for the year
Core operating cash flow for the fiscal year ended March 2020 has been revised to deduct payment of lease liabilities.
1 Strengthen Business Management Capabilities
Mitsui aims to quickly return to a growth trajectory by strengthening the profitability of existing businesses. The Company intends to reinforce its business management capabilities as an organization, while allocating management resources including human resources to the businesses where Mitsui is able to take the lead and produce results.
- Expand knowledge across organizations
- Introduce diverse professional talent
Foster and deploy business
- Prioritize placements at important subsidiaries and affiliated companies
- Internal development, external recruitment
- Prioritize allocation of management resources, including personnel, in businesses and companies where profitability improvement can be realized
Strengthening Business Management Capabilities: Leveraging the Corporate Development Division
The Corporate Development Division was set up in 2013 as a Companywide support organization belonging to the Corporate Development Business Unit. In addition to teams in charge of improving management and increasing corporate value at investees, we have created a team of M&A specialists in charge of improving the quality of investment portfolios, and a dedicated team in charge of risk management, drawing from our pool of professionals in Japan. Team composition is unique such that specialists from investment banking, private equity and management consulting firms are recruited actively and those professionals are grouped with talent internally selected. These teams take a hands-on, results-oriented approach to getting involved in business units and important investees. The teams are involved in a broad range of initiatives, from earnings improvement to PMI and organizational reforms.
Based on actual conditions received from hands-on support mentioned above, the division takes the role as a problem-solving leader to propose solutions to the Company’s management regarding managerial issues such as the development of management talent for the entire Mitsui Group. To this end, the division has built a robust collaboration framework with corporate organizations, such as the Corporate Planning & Strategy Division, the Investment Administrative Division, and the Human Resources & General Affairs Division. To improve management at investees, teams in charge work on-site to improve management, and teams play roles in training and grooming business management personnel from the talent pool.
Utilization Scheme of the Corporate Development Division
Evolve Financial Strategy
and Portfolio Management
In addition to maintaining and improving our robust financial base, we pursue flexible and strategic capital allocation to growth investments and additional shareholder returns. We also thoroughly review investment amounts and timelines for projects for which an investment decision has already been made.
With regard to shareholder returns, the Company aims to increase the total shareholder return ratio above the level of the previous medium-term management plan, while implementing capital allocation with a focus on improving capital efficiency and medium- and long-term growth opportunities.
3 Personnel Strategy
Mitsui aims to create businesses and increase value through global talent management, including raising the professionalism of each and every employee, and harnessing their talents in the right place and at the right time, while organically connecting together its diverse pool of professionals.
We are keen to change employee mindsets and behavior patterns, catalyzing “intellectual chemical reactions,” and accelerating the move toward a new working style that combines robust digital platforms and new head office functions.
- Local Depth for Global Reach,
Global Reach for Local Depth
- Promote and appoint personnel regardless of where they were recruited
- Develop next-generation leaders on a global basis
- Strengthen global talent management
- Diversity & Inclusion
- Create frameworks and organizations where diverse personnel can thrive
- Strengthen employee engagement on a Global Group basis
- Provide an innovative working environment where employees can deliver their best
- Strengthen Diverse Individuals
- Inspire and develop personnel who can take on business management
- Implement personnel systems and operations that empower the individual to succeed
New Mission, Vision, Values
4 Strategic Focus
Mitsui intends to establish new earnings pillars by selectively allocating management resources to strategic focus areas with an awareness of Materiality, enabling existing businesses to create multifaceted value on platforms.
Natural gas, infrastructure,
LNG development and renewable
energy business as central platform
Smart energy services
Business that helps mitigate
Healthcare / Nutrition
Hospitals and their ancillary businesses
IHH as central platform
Medical data/integrated facility management
Nutrition, food protein
Promotion of the
digital economy and DX
Emerging economies and Japan
5 Strengthen Profitability of Core Businesses and Take on Challenges in New Businesses
In the core businesses of Mineral & Metal Resources, Energy, Machinery & Infrastructure, and Chemicals, we will accelerate our “make strong businesses stronger” strategy. Mitsui aims to optimize its business portfolio to be more competitive over the medium and long term by recycling assets, including divestitures, and investing to maintain and expand reserves of natural resources.
Iron ore, coking coal, copper, recycling
Oil, gas, renewable energy, new energy
Power generation, marine energy,
Methanol, tank terminal,
Mitsui has created values by connecting various countries, regions and industries, thereby expanding its potential as a general trading company. To instill a “creative” mindset and behavior patterns in its own businesses, the Company will accelerate initiatives centered on the Moon Creative Lab, a business creation platform. Through digital transformation (DX), the Company aims to create new businesses spanning business units, in addition to improving the productivity and competitiveness of existing businesses.
Timing of Earnings Contributions from Quality Business Assets
The chart shown below outlines the timing of earnings contributions from quality business assets fortified during the previous medium-term management plan in the Company’s core businesses of Mineral & Metal Resources, Energy, Machinery & Infrastructure, and Chemicals.
Strengthen profitability and pursue new business
6 Sustainability Management / Evolution of ESG
With a focus on the impact to its operations and public demand and expectations, Mitsui mapped out important sustainability issues to determine the issues it should tackle on a Companywide basis during the period of the management plan, excluding issues toward which it is already engaging. As a result, Mitsui will address climate change, the circular economy, and business & human rights as priority issues under the current medium-term management plan.
Mitsui will continue to strengthen corporate governance and improve the effectiveness of the Board of Directors.
In the fiscal year ending March 31, 2021, Mitsui expects profit for the year to fall sharply compared with the fiscal year ended March 31, 2020, due to the spread of COVID-19. However, management estimates that core operating cash flow will be ¥400 billion. Mitsui will steadily execute the corporate strategy outlined in the management plan, and aim to quickly return to a growth trajectory.
Core Operating Cash Flow
Profit for the Year
- Resources & Energy
- Machinery & Infrastructure
- Other business areas
- Headquarters & eliminations
Note:Core operating cash flow for the fiscal year ended March 2020 has been revised to deduct payment of lease liabilities.