Mitsui & Co., Ltd. ("Mitsui", Head Office: Chiyoda-ku, Tokyo, President and CEO: Kenichi Hori) concluded a capital and business alliance agreement (hereinafter referred to as the "Alliance") in the alternative asset management field on March 31, 2025, with Daiwa Securities Group Inc. ("Daiwa Securities Group", Head Office: Chiyoda-ku, Tokyo, President and CEO: Akihiko Ogino), Daiwa Asset Management Co. Ltd. ("Daiwa Asset Management", Head Office: Chiyoda-ku, Tokyo, President: Mikita Komatsu), which is a consolidated subsidiary of Daiwa Securities Group, JAPAN POST INSURANCE Co., Ltd. ("Japan Post Insurance", Head Office: Chiyoda-ku, Tokyo, Director and President, CEO, Representative Executive Officer: Kunio Tanigaki), MKAM Co., Ltd. ("MKAM", Head Office: Chiyoda-ku, Tokyo, Representative Director and President: Takashi Nakai), which is an intermediate holding company of Mitsui and Japan Post Insurance, and Mitsui & Co. Alternative Investments Limited ("MAI", Head Office: Chiyoda-ku, Tokyo, President and Chief Executive Officer: Takateru Mitsui), a wholly owned subsidiary of Mitsui. Mitsui will execute a share transfer transaction (hereinafter referred to as the "Transaction") with Daiwa Asset Management and MKAM, and as a result, MAI will become a subsidiary of Daiwa Asset Management. In conjunction with this Transaction, MAI plans to change its company name to "Daiwa JPI Alternative Investments Co., Ltd. (DKAI)".

In recent years, alternative assets have been gaining attention as alternatives to traditional assets such as listed stocks and bonds. These assets have risk-return characteristics that are different from those of traditional assets, and incorporating them as part of a portfolio is expected to improve investment efficiency. Interest in alternative asset management has been rising year by year among both institutional and individual investors, making it increasingly important to address the diversifying challenges and needs of clients.

On this occasion, Mitsui, Daiwa Securities Group, and Japan Post Insurance have agreed to collaborate in the alternative asset management field through MAI, a frontrunner in alternative asset management, from their different positions as a global investment and trading company, an asset manager, and an asset owner, respectively. By bringing together the knowledge and networks related to asset management and real assets that each group has accumulated and refined over the years, the companies will realize the provision of one-of-a-kind services.

The Alliance is part of the initiatives related to the capital and business alliance between Japan Post Insurance and Daiwa Securities Group in the asset management field, announced on May 15, 2024^*1, which aims to enhance Daiwa Asset Management's investment capabilities and product/service offerings, and diversify Japan Post Insurance's revenue sources and strengthen its asset management capabilities. Moreover, the Alliance is expected to further advance the collaborative strategic initiatives between Mitsui and Japan Post Insurance at MKAM, which was established based on the capital and business alliance between Mitsui and JPI in the real estate asset management business, announced on June 10, 2022^*2.

Through the provision of diverse investment products to investors, we aim to further enhance the corporate value of MAI, which has led the alternative asset management field since its early days, and contribute to promoting Japan as a leading asset management nation.

*1 May 15, 2024 "Notice Regarding Capital and Business Alliance between Japan Post Insurance and Daiwa Securities Group in the Asset Management Field"
https://ssl4.eir-parts.net/doc/8601/announcement21/99405/00.pdf
*2 June 10, 2022 "Capital and Business Alliance with JPI in the Real Estate Asset Management Business"
https://www.mitsui.com/jp/en/topics/2022/1243600_13410.html

Details of the Alliance

Asset Management

Japan Post Insurance will outsource part of its alternative investment asset management to MAI, enhance its investment capabilities through synergies with MAI, including the personnel exchanges mentioned below, and contribute to the growth of its investees, Daiwa Asset Management and MKAM.
Daiwa Asset Management will provide MAI with investment infrastructure, including middle and back-office functions, to contribute to improving MAI's investment capabilities.

Personnel Exchange

Mitsui, Daiwa Asset Management, and Japan Post Insurance will engage in personnel exchanges with MAI to enhance their revenue bases and strengthen their organizational structures through the advancement of MAI's investment capabilities.

Development of Private and Public Offerings

Daiwa Asset Management and Daiwa Securities Group will work with MAI to develop private and public offerings, aiming to provide investors with superior alternative products.

Enhancement of Solution Provision Capabilities

Mitsui will utilize the domestic and international networks and alternative asset sourcing capabilities of Mitsui & Co. Group to support the enhancement of MAI's solution provision capabilities.

Schedule of the Alliance

*3 We plan to execute this share transfer after completing procedures related to the Alliance (including the review of transaction contracts between Mitsui and MAI, and organizational changes at MAI and related procedures with relevant authorities). If these procedures take longer than expected, there is a possibility that the execution date may be changed.

Future outlook

The impact of the Alliance on the consolidated financial results for the fiscal year ending March 31, 2025 of Mitsui, Daiwa Securities Group, and Japan Post Insurance is currently expected to be negligible. However, by promoting the initiatives in relation to the Alliance, we will work to enhance our corporate value over the medium to long term.
Furthermore, if it becomes clear in the future that the specific progress of the initiatives in relation to the Alliance will have an impact on our business performance, we will promptly announce such information.

Company Profile

Daiwa Securities Group

Daiwa Asset Management

Japan Post Insurance

MKAM

MAI