《丸紅株式會社Marubeni（8002.T）2024年綜合年度報告「TSE」（英文版）（117頁）.pdf》由會員分享，可在線閱讀，更多相關《丸紅株式會社Marubeni（8002.T）2024年綜合年度報告「TSE」（英文版）（117頁）.pdf（117頁珍藏版）》請在三個皮匠報告上搜索。

1、INTEGRATED REPORTMarubeni Corporation 2024The Marubeni Group aims to improve corporate value over the medium and long terms through a focus on sustaining and improving cash generation and ROE and reducing the cost of equity.This Integrated Report is structured around these three pillars.Improvement

2、of Corporate ValueSustain and Improve Cash GenerationSustain and Improve ROEReduce Cost of EquityValues of the Marubeni Group.P.02Message from the President&CEO.P.03Disclaimer Regarding Forward-Looking Statements and Original LanguageIntegrated Report 2024 contains forward-looking statements about t

3、he future performance,events or management plans of Marubeni Corporation and its Group companies(the Company)based on the available information,certain assumptions and expectations at the point of disclosure,of which many are beyond the Companys control.These are subject to a number of risks,uncerta

4、inties and factors,including,but not limited to,economic and financial conditions,factors that may affect the level of demand and financial performance of the major industries and customers we serve,interest rates and currency fluctuations,availability and cost of funding,fluctuations in commodity a

5、nd materials prices,political turmoil in certain countries and regions,litigation claims,changes in laws,regulations and tax rules,and other factors.Actual results,performances and achievements may differ materially from those described explicitly or implicitly in the relevant forward-looking statem

6、ents.The Company has no responsibility for any possible damages arising from the use of information on Integrated Report 2024,nor does the Company have any obligation to update these statements,information,future events or otherwise.Integrated Report 2024 is an English language translation of the ma

7、terials originally written in Japanese.In case of discrepancies,the Japanese version is authoritative and universally valid.Note Regarding Accounting StandardsThe Company adopted U.S.GAAP up until the fiscal year ended March 31,2013,and IFRS from the fiscal year ended March 31,2014.“Profit attributa

8、ble to owners of the parent”is described as“Consolidated Net Profit”/“Net profit”in this report.Integrated Report 2024 Contents5SECTIONCorporate Data.P.102103 Financial Data105 Non-Financial Data106 State of Major Green Business Initiatives108 Major Progress in Greening All Business Domains109 Net P

9、rofit of Major Group Companies111 Outstanding Balance of Country Exposure112 Organization113 IR Activities/External Evaluation114 Company Profile/Stock Information115 Publication of the Integrated Report 2024/Closing Remarks from Marubenis IR&SR Department4SECTIONBusiness Portfolio.P.8485 Consumer P

10、roducts Group88 Food&Agri Group91 Materials Group93 Energy&Infrastructure Solution Group97 Transportation&Industrial Machinery,Financial Business Group100 CDIO2SECTIONRealizing Value Creation.P.2021 Mid-Term Management Strategy GC2024 (April 2022 March 2025)Three Years of Putting Strategy into Pract

11、ice23 Green Strategy25 Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)26 Message from the CSO27 Value Creation Model29 Business Operation Policy30 Business Investment Process32 Special Feature 1:Continuous Growth Investments42 HR Strategy Special Feature 2:Dialogue Between th

12、e CHRO and Outside Director53 DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSustain and Improve Cash GenerationSustain and Improve ROE3SECTIONInitiatives for More Sustainable Value Creation.P.5758 Message from the CAO59 Risk Management62 Sustainability for the Maruben

13、i Group70 Corporate Governance80 Corporate ManagementReduce Cost of Equity1SECTIONValue Creation at Marubeni.P.0809 History of Value Creation11 Marubenis Accumulated Strengths13 Value Creation Story14 Material Issues for Improving Corporate Value(Materiality)15 Management Capital16 Message from the

14、CFO19 Initiatives to Improve Corporate Value over the Medium and Long TermImprovement of Corporate Value01MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value CreationSECTION 3:Initiatives f

15、or More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Data We anticipate the issues and challenges facing society and create innovative solutions for our customers and for the world,breaking down barriers between sectors,between internal and external,crossing borders,buil

16、ding on our existing business models and expanding into new markets.We will generate new value by freely combining our Groups strengths,internal and external expertise,individual dreams and visions,taking the Marubeni Group as one single platform.Creating value through innovative solutions for our c

17、ustomers and for the worldShare the challengeFairnessAct with fairness and integrity at all times.InnovationPursue creativity with enterprise and initiative.HarmonyGive and earn the respect of others through cooperation.Company Creed“Fairness,Innovation,and Harmony”Company CreedValues That Act as Co

18、nstant GuidesOur VisionGroup Commitment to Increasing Corporate Value in a Lasting WayManagement PhilosophyRealizing the Vision through Corporate ActivitiesValues of the Marubeni GroupIn accordance with the spirit grounded in“Fairness,Innovation and Harmony,”the Marubeni Group is proudly committed t

19、o social and economic development and safeguarding the global environment by conducting fair and upright corporate activities.02MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value CreationS

20、ECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataMessage from the President&CEOPaving the way to sustainable profit growth for enhancing corporate value,and creating a cycle of growth and shareholder returnsPresident&CEOMasumi Kakinoki03MARU

21、BENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataTurning risks into oppor

22、tunities through the unique network and agility of a trading company The global environment remains highly uncertain,with business conditions changing rapidly.As companies are compelled to address various risks,the Marubeni Group leverages its extensive global network to swiftly understand the lates

23、t conditions affecting its individual businesses.High levels of uncertainty in the business environment give rise to new needs and challenges for our customers and business partners.By continuously updating our understanding of these conditions,we not only reduce our exposure to risks but also get a

24、n early read on social needs and challenges,allowing us to promptly propose appropriate solutions to our customers and partners.This ability to rapidly respond to events is one of our greatest strengths as a trading company and enables us to transform risks into opportunities.As an“essential partner

25、 that continually bridges gaps in society,”the role of the Marubeni Group is to fill the gap between an unclear future and the present.In these unpredictable times,the Marubeni Group is constantly thinking of ways to create new value,and will make every effort to seize new business opportunities in

26、this context.The roles performed by the Marubeni Group continue to grow in importance every day,and we believe there are still many opportunities around the world where we can act as problem solvers.Steady progress on strengthening the earnings base through relentless implementation of strategies Un

27、der the GC2024 Mid-Term Management Strategy,the Marubeni Group is determined to strengthen our existing business domains and create new business models to steadily cultivate and establish new pillars of earnings.As a result of initiatives to increase and expand the competitive advantages of each bus

28、iness in order to strengthen our existing business domains,Marubeni achieved adjusted net profit*in excess of 450.0 billion for a third consecutive year in the fiscal year ended March 31,2024,solidifying a higher earnings base that matches the recently expected underlying adjusted net profit of betw

29、een 400.0 billion and 450.0 billion.Additionally,adjusted net profit in non-resource fields,where we have focused our efforts to achieve steady profit growth,reached approximately 300.0 billion for the three consecutive years through the fiscal year ended March 31,2024.Marubeni views these achieveme

30、nts as evidence of a significant strengthening of its earnings base,demonstrating its robust ability to generate sustainable results even in uncertain times.Regarding the creation of new business models,Marubeni has identified growth domains that it had not ventured into in the past,and some project

31、s in these domains have already gotten off the ground and entered the operational phase.While some projects have business models that may not show immediate results,we are confident in their future growth potential and are actively pursuing investments in these domains.The fiscal year ending March 3

32、1,2025 marks the final fiscal year of GC2024,which we have designated as three years of putting strategy into practice.Without losing momentum,we will continue to strengthen our earnings base and advance to the next stage of profits.*Adjusted net profit:Net profit excluding one-time items,shown in a

33、n approximate figureImproving investment discipline to avoid being misled by invisible synergies As part of GC2024,Marubeni is committed to enhancing medium-to long-term corporate value by focusing efforts on sustaining and improving cash generation and ROE,and reducing the cost of equity.By realizi

34、ng medium-to long-term profit growth through a sustained improvement of cash generation,Marubeni aims to sustain and improve ROE while also reducing the cost of equity.To achieve this,the Company is actively working to further strengthen its financial foundation,stabilize earnings,and enhance non-fi

35、nancial value.In terms of sustaining and improving cash generation,Marubeni is targeting medium-to long-term profit growth through both organic growth in existing businesses and growth investments.In particular,the Company is prioritizing growth investments in existing business domains where it has

36、competitive advantages,particularly in the non-resource field,to further strengthen and expand these existing businesses,Message from the President&CEO04MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:

37、Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Datawhich should help to sustain and improve ROE.We will execute growth strategies across various business domains,especially those that have driven growth in non-resource

38、 fields,including the food&agri business;the power&infrastructure project;finance,leasing&real estate;as well as construction,industrial machinery&mobility,in a bid to lift profit to higher levels.Putting these strategies into practice,we are committed to growing these investments into future pillar

39、s of profit with a medium-to long-term perspective and a sense of urgency.Marubeni maintains strict investment discipline in its growth investments.In the past,we had some investment projects that anticipated a variety of synergies in business plans in order to get the green light on deals.Now,howev

40、er,we more rigorously evaluate projects by stripping away these synergies during the review process,leaving only the core business components such as profitability,competitiveness,and sustainability.Applications for new projects laden with unrealistic synergies are basically nonexistent now.In the p

41、ast,we had cases where projects were given the green light with an understanding of risks only visible to us,while hard-to-comprehend risks were pushed aside and only became more apparent when external conditions stagnated,leading to the risk of impairment losses.Such hastily put together projects a

42、re now promptly identified,and there is a shared awareness within the Company that unmanageable risks should not be taken under any circumstances.While this may sound like a process that stifles attempts to take on challenges,we actually believe it is good to fail on occasion,and we have not said th

43、at we should never make mistakes or fail.Existing business domains will not expand unless we embrace challenge and enhance the level of our employees and organization.As long as risks are manageable when taking on a challenge,we believe that failure is acceptable as long as the lessons learned from

44、failing help us take a step forward.We encourage people to take on challenges in all sorts of businesses within the Marubeni Group,not just in growth investments.The accumulation of insights and knowledge from this cycle leads to continuous improvement in daily operations and the strengthening of co

45、mpetitive advantages through additional investments.Marubeni will continue to make strategy-focused growth investments aligned with its Business Policies SPP*while maintaining strict investment discipline.As profit levels have risen above historical levels and our financial foundation has become str

46、onger,we believe we are ready to undertake larger investment projects than before while carefully scrutinizing candidate projects.*SPP:Strategy Prime PlatformEnhancing follow-up system to eliminate negative surprises Following up on investments after execution is crucial to improving ROE.Even if a b

47、usiness performs well for a certain period after an investment is executed,if the implementation of strategies loses momentum,the business may quickly become obsolete,by being unable to keep pace with changes in the business environment.While it is important to stick to an initial strategy,it is als

48、o vital that we follow up and flexibly and adaptively update strategies in reaction to changes in the business environment.In the fiscal year ending March 31,2025,I personally visited major operating companies including agri-input retailer Helena and used car retail financing business Nowlake in the

49、 United States,as well as operating companies in other regions.Monitoring the direction of existing businesses is crucial.Rather than simply assessing existing businesses as being in good health because their earnings are strong,it is essential to regularly update outlooks for the external business

50、environment,as well as assess each operating companys market position,competitive advantages,and progress on growth strategies.By constantly keeping in mind the earnings outlook and risks in each business,we can make adjustments to strategies when necessary and proactively address potential risks be

51、fore they become significant.The Marubeni Group divides its segments into 16 business divisions,but monitors existing businesses for any anomalies at a more granular unit level.We calculate ROIC for each unit,and even for units that meet the ROIC threshold,we review the details and take preemptive m

52、easures for businesses with declining profits,going through a PDCA cycle.Previously,corrective actions were sometimes taken at the budgeting stage only after conditions had deteriorated,but now,monitoring is done at an earlier stage,allowing us to address anomalies before they manifest.We have appro

53、ximately 70 business units that we closely watch,identifying and mitigating potential issues in around 10 projects or units depending on the year,with everyone working in unison to come up with ideas.We quickly Message from the President&CEO05MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the

54、Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Datadecide whether a business unit can be improved,which helps us extinguish pote

55、ntial flashpoints before they spread.We intend to maintain this early response approach when bad signs arise in businesses,regardless of the external environment.In the past,reluctance to sell businesses at a loss led to an even greater predicament,but now,there is a growing consensus within the com

56、pany that it is better to sell and reinvest when capital efficiency improves through divestitures.We believe this awareness of the importance of capital efficiency will continue to permeate the entire Company,contributing to sustaining and improving ROE and,ultimately,reducing the cost of equity,whi

57、le showing the market our track record and pathway for profit growth.In the past,Marubeni experienced periods of high earnings volatility,where profit growth was often followed by significant impairments,resetting its progress.Shareholders probably viewed Marubeni as a somewhat“wild ride”during thos

58、e times.Learning from these challenging experiences,the significant impairment losses in the fiscal year ended March 31,2020,purged all the major bad assets and fortified our resolve to strengthening investment discipline,and this has led to the establishment of our strong earnings base today.The mo

59、st important factor in raising ROE is steadily increasing profits,in other words,reducing earnings volatility and achieving long-term profit growth.Marubeni believes it is vital to do its utmost to increase profits and reinvest these gains to create a positive cycle for the Company.ROE may not alway

60、s be tangible in daily business operations,so it is crucial to emphasize its importance within the Company.We feel that ROIC,CROIC,and RORA,which are applied to each project and considered from the initial application stage,are now well understood at the operational level.We will continue to stress

61、the importance of capital efficiency,and maintain our focus on sustaining and improving ROE as we aim for the next profit stage.Shaping the future through HR strategy Human capital is the most valuable asset of the Marubeni Group and the driving force for value creation.Our management strategy outli

62、nes our vision and direction for the future,and our HR strategy is a critical element supporting its realization.Enhancing corporate value requires maximizing the potential of our human resources and ensuring that our employees can work with enthusiasm in alignment with our management strategy.In a

63、rapidly changing business environment,it is essential to continuously review our HR strategy,just as we do with our business growth strategies.For sustaining and improving cash generation and ROE,maximizing the potential of our human resources and aligning their efforts enthusiastically with our man

64、agement strategy is crucial.In April 2024,we moved the Chief Human Resources Officer(CHRO)to a direct report line to the President in order to involve the CHRO in overall management of the HR strategy,further elevating the HR strategy.As a first step,we eliminated the distinction between career-trac

65、k employees and administrative-track employees in July 2024,implementing in its place a system based on merit and suitability,regardless of job title,as a measure to draw out the best of each employees abilities.Additionally,we extended the mission-based system for deciding compensation,previously l

66、imited to management positions,to non-management positions to encourage employees to take on more challenges.We will continue to encourage all employees to fully demonstrate their capabilities,take on greater roles,and grow together with the Company.As part of my efforts,I have been actively engagin

67、g with employees on the front lines through the Opinion Box*,which I initiated upon becoming President,and through face-to-face meetings with domestic employees,overseas expatriates,and local hires at overseas companies.I have made it a priority to listen to the opinions of our employees and swiftly

68、 address any issues that come to light.At the same time,I recognize the importance of our DX strategy.A common challenge in advancing our HR strategy is the shortage of talent,but we believe this can be addressed by effectively implementing our DX strategy.With the emergence of generative AI,such as

69、 ChatGPT,Marubeni has also intro-duced the Marubeni Chatbot,a generative AI tool designed by Marubeni,companywide.We intend to proactively utilize these new technologies in business operations and management to further enhance work efficiency and sophistication.Digital technology has become an indis

70、pensable tool in solving the challenges faced by our customers,investees and partners.We will focus our attention even more on digital technology and more aggressively incorporate it in the provision of comprehensive solutions that include digital technologies.At Euroma during a trip to Europe*A sys

71、tem where the CEO communicates important management topics to group employees through video messages and directly responds to all employee opinions and questions regarding those topics.Message from the President&CEO06MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from

72、 the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataPromoting our green strategy toward a sustainable future Under GC2024,the Marubeni Group has positioned

73、 the “Green Strategy”as one of its basic policies.We are committed to contributing to a nature positive society and the realization of a society in harmony with nature envisioned by the international community.With this in mind,we have made sustainability initiativessuch as decarbonization,transitio

74、ning to a circular economy,respect for human rights,and building sustainable supply chainsa fundamental premise of our business operations.These efforts are essential to balancing our considerations and contributions to high-priority environmental and social issues throughout society with the long-t

75、erm growth of the Marubeni Group.The Marubeni Groups Green Strategy goes beyond expanding and strengthening Green Businesses that contribute positively to the global environment,such as renewable energy projects.We are also committed to the“Greening”of all business domains to avoid and mitigate the

76、environmental impact of our business activities while contributing to the restoration and regeneration of natural ecosystems.Internally and externally,we convey our aspirations of being a forerunner in Green Business as a reflection of our strong determination to fulfill our corporate responsibility

77、 in achieving a sustainable society,rather than merely following trends.We believe that implementing the Green Strategy and realizing a nature positive society is not only the social mission of the Marubeni Group,but also key to enhancing corporate value over the medium-to long-term.With this strate

78、gy constantly in mind,we will continue to promote businesses that consider the global environment in order to build a sustainable future.The Marubeni Groups commitment to sustainability will continue to evolve.Enhancing shareholder returns with strong cash flow In line with GC2024s capital allocatio

79、n policy,Marubeni aims to continuously enhance and strengthen its financial foundation while focusing on growth investments and shareholder returns.The Company has a progressive dividend policy and aims to provide a stable dividend over the long term,while increasing dividends in line with medium-to

80、 long-term profit growth.We understand that shareholders are concerned about whether the uptrend in our earnings will continue,and we are determined to continue enhancing shareholder returns by increasing cash flow through profit growth.In the past,Marubeni lacked the flexibility to fully consider s

81、hareholder returns,maintaining a dividend payout ratio of 25%,increasing dividends when profits rose,and reducing them when profits declined,resulting in inconsistent returns that did not always meet shareholders expectations.After thorough consideration of ways to take a more proactive stance on sh

82、areholder returns,we declared a progressive dividend policy as our commitment to increasing dividends in line with medium-to long-term profit growth,complemented by flexible share buybacks,allowing for adjustments in the balance between investments and shareholder returns according to the business e

83、nvironment.As a result of our analysis of ways to effectively utilize the free cash from the sale of Gavilon Agriculture Investment,we have allocated 50 billion for share buybacks in the fiscal year ending March 31,2025,as part of our shareholder return strategy,which should result in a total payout

84、 ratio of 42%including dividends.Management will continue to consider additional shareholder returns if there are significant cash inflows in the future,but we believe it is prudent to keep investments and shareholder returns within the scope of the Companys annual core operating cash flow.Marubeni

85、intends to establish a sustainable cycle by achieving steady profit growth through organic growth and growth investments,and utilizing the increase in cash flow to fund more investments and shareholder returns.The Company plans to review the total payout ratio,currently set at approximately 30-35%un

86、der GC2024,in discussions for the new mid-term management strategy starting from next fiscal year.Aiming to exceed stakeholder expectations by continuing to embrace challenges In recent years,the Marubeni Group has strengthened its earnings power and financial foundation,allowing for the expansion o

87、f shareholder returns.These significant achievements have been recognized by the stock market,as demonstrated by Marubenis share price reaching record highs on multiple occasions since the fiscal year ended March 31,2024.We can feel the growing expectations of our stakeholders.To continue enhancing

88、our dialogue with stakeholders and evolving our management practices,we established the IR&SR Department*in the fiscal year ending March 31,2025.In addition to management owning shares in the Company,the ratio of employees who participate in the employee stock ownership plan has risen to 94.5%as of

89、March 31,2024.This reflects our commitment to aligning our interests with shareholders and working together to enhance corporate value.Going forward,the entire Marubeni Group will continue to embrace new challenges,advance value creation,and strive to exceed the expectations of all stakeholders,incl

90、uding shareholders.*IR is an abbreviation for investor relations,SR is an abbreviation for shareholder relations.Message from the President&CEOMasumi KakinokiPresident&CEO07MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation a

91、t MarubeniSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Data09 History of Value Creation11 Marubenis Accumulated Strengths13 Value Creation Story14 Material Issues for Improving Corporate Value(Materiality)1

92、5 Management Capital16 Message from the CFO19 Initiatives to Improve Corporate Value over the Medium and Long TermValue Creation at MarubeniIn addition to illuminating the strengths Marubeni has cultivated throughout its 160-year history,we explain the driving forces behind the Marubeni Groups value

93、 creation,including our value creation story and management capital.1SECTIONImprovement of Corporate ValueReduce Cost of EquitySustain and Improve ROESustain and Improve Cash Generation08MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Va

94、lue Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation Story Material Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Long TermSECTION 2:Realizing Value Crea

95、tionSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataHISTORYThe Marubeni Group has consistently supported the development of society and the economy through business development in tune with the latest needs,while anticipating societal chan

96、ge.1858 Marubenis founder,Chubei Itoh,began selling Ohmi linenDeepening of businessBusiness evolution from trading to business investment,expansion of overseas operation centered on the U.S.Resource investmentSecuring of natural resource interests that led to current green strategyNon-resource inves

97、tmentDevelopment of diverse businesses to enhance resiliencePursuit of improving corporate value by staying one step ahead of changes in the environment and societyFounded Textile businessBecoming a general trading companyExpansion of business domains18581950s1980s2000sPresent2005 Indonesia:MUSI Pul

98、p Project management interests acquired2008 Chile:Acquired interest in Esperanza(now Centinela)Copper Mine2011 U.S.:Invested in Westlake(now Nowlake),a used car retail financing business2012 Australia:Acquired equity stake in Roy Hill Iron Ore Project2013 U.S.:Invested in Aircastle,an aircraft leasi

99、ng company2013 U.S.:Acquired Gavilon,a grain and fertilizer wholesalerCentinela Copper Mine(Chile)MUSI Pulp Project(Indonesia)Roy Hill iron mine(Australia)Nowlake(U.S.)2017 U.S.:Acquired Creekstone,a beef processor2019 Next Generation Business Development Division established2019 Brazil:Invested in

100、Adubos Real,an agri-input distributor2020 U.S.:Made additional investment in Aircastle,an aircraft leasing company2022 Next Generation Corporate Development Division established2022 U.S.:Sold Gavilons grain businessBusiness Progress2018 Disclosed policy to pull out of coal-fired power generation 201

101、9 Identified materiality,adopted TCFD recommendations2019 Created Business Policies SPP(enhancing investment discipline)2020 Net loss booked on large impairment losses(FYE 3/2020)Removed the risk of future large impairment losses2021 Disclosed Long-Term Vision on Climate Change2022 Disclosed Green S

102、trategy2023 Achieved record-high profit(FYE 3/2023)Next Generation Business Development Division(OSAJI Inc.(Japan)Adubos Real(Brazil)Creekstone(U.S.)Aircastle(U.S.)Marubenis founder Chubei ItohMark from which Marubeni company name was derived1978 U.S.:Grain origination and export business Columbia G

103、rain established1987 U.S.:Acquired agri-input retailer Helena1994-Start of initiatives in IPP business1997 Qatar:First shipment from Qatar LNG project delivered1997 Chile:Acquired interest in Los Pelambres Copper Mine1997-Start of initiatives in renewable energy power generation businessColumbia Gra

104、in(U.S.)Helena(U.S.)1949 Marubeni Co.,Ltd.was established1951 First overseas subsidiary established in New York1961 Non-textile sales exceeded 50%of total sales1963 Received thermal power plant equipment order from Manila Electric Company in the PhilippinesNew York subsidiaryHistory of Value Creatio

105、n166Foundedyears agoEarnings base in non-resource fieldsTrack record and competitiveness in the U.S.The beginning ofMarubenis strengths09MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation

106、 Marubenis Accumulated Strengths Value Creation Story Material Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Long TermSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Val

107、ue CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataLarge impairment lossesHaving stepped up our financial foundation and earnings base,we will further pursue strategies to achieve steady growth and enhance corporate value over the longer term.Consolidated net profit(Billions of yen)Net D

108、E ratio(Times)2015.32015.3105.6Further advance strategies to improve corporate value over the medium and long termsA corporate group that is proudly committed to social and economic development and safeguarding the global environmentReduce cost of equitySustain and improve cash generationP.19 Initia

109、tives to Improve Corporate Value over the Medium and Long TermSustain and improve ROEMarket capitalization1.2 trillion(As of March 31,2015)2017.32017.32016.32016.32018.32018.32019.32019.32021.32021.32022.32022.32023.32023.32024.32024.32025.32025.3(Forecast)(Forecast)1.901.902.102.101.251.251.231.231

110、.081.080.940.940.930.930.830.830.550.550.520.52ROE 22%ROE 22%ROE 23%ROE 23%ROE 15%ROE 15%ROEROEAround Around 15%15%Around Around 0.6-0.7 times0.6-0.7 times62.3155.4211.3230.9223.3424.3543.0471.4480.0Market capitalization4.4 trillion(As of March 31,2024)2020.32020.3(197.5)(197.5)Rebuild and strengthe

111、n our financial foundation,complete write-down of assets of concern,solidify and expand the earnings base,and enhance investment disciplineGC2024 Establish an annual earnings base of 400.0450.0 billion by strengthening existing business domainsGC2021Mid-Term Management StrategyPERFORMANCEHistory of

112、Value Creation3.6xMarket capitalization Consolidated Net Profit/Net DE Ratio10MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation Story Mater

113、ial Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Long TermSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate

114、DataEarnings Base in Non-Resource Fields2025.32025.3(Forecast)(Forecast)2024.32024.32023.32023.32022.32022.32021.32021.32018.32018.32019.32019.32020.32020.3Adjusted Net Profit for Non-Resource Fields(Billions of yen)Further strengthening of earnings base by executing strategiesU.S.Helena Agri-Enterp

115、risesMajor U.S.agri-inputs retailerU.S.Nowlake TechnologyThe third-largest used-car finance provider and the first among nonbank lenders in the U.S.U.K.SmartestEnergyU.K.no.6 in retail power sales for corporationsProfit attributable to owners of the parentfor fiscal year ended March 31,202425.6 bill

116、ionProfit attributable to owners of the parentfor fiscal year ended March 31,202428.9 billionProfit attributable to owners of the parentfor fiscal year ended March 31,202439.4 billionSTRENGTHMarubenis Accumulated Strengths186.0197.0296.0321.0307.0321.0172.0178.0pursuing a strategy of building up str

117、engths in non-resource fields further strengthen our earnings base by that are less susceptible to fluctuations in resource prices.We are working to Enhanced profitabilityInitiatives to reinforce existing business domains11MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessag

118、e from the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation Story Material Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Lon

119、g TermSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Data Marubeni America Corporation Branch offices Subsidiaries and affiliatesRailcar leasing business(Midwest Railcar Corporation)Sales of agri-inputs(Helen

120、a Agri-Enterprises)Leasing and rental of refrigerated trailers(PLM Fleet)Aircraft leasing business(Aircastle)Aircraft parts trading business(Magellan Aviation Group)Fertilizer wholesale(MacroSource)(The Parts House)(XL Parts)Automotive aftermarket businessExploration,development,production and sales

121、 of oil and natural gas resources(Marubeni Oil&Gas(USA)Conveyor belt distribution business(Viacore Solutions)Used car retail financing(Nowlake Technology)Sales of natural gas and petroleum products(MIECO)Origination,storage,export and domestic sale of grains(Columbia Grain International)Processing a

122、nd sales of premium box beef(Creekstone Farms Premium Beef)Blending,packing,and sales of specialty oils and fats(Gemsa Enterprises)Aircraft parts trading business(DASI)Fleet management business(Wheels)STRENGTHCompetitiveness in the U.S.Marubenis Accumulated Strengthsgenerating around 30%of net profi

123、ts in the U.S.More than 70 years of business experience in the U.S.Strong earnings base,12MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation

124、 Story Material Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Long TermSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION

125、5:Corporate DataCreation of ValueEconomic ValueRealizing our future visionRealizing our future visionManagement PhilosophyIn accordance with the spirit grounded in In accordance with the spirit grounded in “Fairness,Innovation,and Harmony,”the Marubeni Group “Fairness,Innovation,and Harmony,”the Mar

126、ubeni Group is proudly committed to is proudly committed to social and economic development social and economic development and safeguarding the global environmentand safeguarding the global environment by conducting by conducting fair and upright corporate activities.fair and upright corporate acti

127、vities.Company CreedDrivers of Value CreationThe Foundations for Value CreationFundamental MaterialityValue Creation StoryCreating value through Creating value through innovative solutions for our innovative solutions for our customers and for the worldcustomers and for the worldShare the challengeS

128、hare the challengeOur VisionNational/Local GovernmentsShareholders and InvestorsCustomers and Business PartnersFuture GenerationsLocal CommunitiesEmployeesSustainable&Resilient Value ChainsSustainable ForestryClimate ChangeHuman Rights&Co-development with CommunitiesThe Marubeni Group is focused on

129、strengthening our existing businesses,creating new business models,and upgrading and recycling assets.By thus pursuing economic value and at the same time environmental and social value,we will create value in the spirit of our management philosophy:the Marubeni Group is proudly committed to social

130、and economic development and safeguarding the global environment.In line with our vision of creating a Global crossvalue platform,we will treat the Group as a single platform where internal and external expertise cross-fertilize with multiple other ingredients in infinite combinations to generate ne

131、w value.Strengthening Strengthening existing business existing business domainsdomainsAsset upgrades/Asset upgrades/recyclingrecyclingCreation of Creation of new business new business modelsmodelsBusiness EnvironmentConcurrent Opportunities and ThreatsGlobal Changes and Major TrendsShifting valuesDi

132、gitalizationGeopolitical risksFinancial normalizationDemands for ESG managementContinuous Growth InvestmentCreating New Value with StakeholdersGreen StrategyEnvironmental&Social MaterialityHuman Capital with High Social ValueGovernance for Coexistence with SocietyRobust Management FoundationFairness

133、,Innovation,and HarmonyEnvironmental and Social Value13MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation Story Material Issues for Improvin

134、g Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Long TermSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Data Environmental&Soci

135、al MaterialityMaterialityClimate ChangeThe Marubeni Group recognizes climate change as a global and highly urgent social issue,striving to anticipate issues and changes linked to climate change and to create growth opportunities while mitigating related risks.One part of its growth strategy is to cr

136、eate new businesses that reduce GHG emissions.Through ongoing efforts to flexibly revise its business portfolio,the Marubeni Group aims to establish a diversified business portfolio that is highly resilient.Sustainable ForestryForests are an important natural resource that provide solutions to vario

137、us social issues,and are likely to play a greater role in absorbing carbon from the atmosphere.Through the sustainable management of forests,the Marubeni Group aims to supply wood resources that are environmentally and socially considerate and to create businesses that maximize the environmental val

138、ue of forests.Human Rights&Co-development with CommunitiesThe Marubeni Group engages in a variety of businesses around the world in diverse cultural situations.We respect the human rights of all stakeholders who are related to the Marubeni Groups business,and are committed to take a sincere approach

139、 to dealing with human rights issues facing the international community.Sustainable&Resilient Value ChainsThe Marubeni Group engages in a diverse range of trading and business on a global basis,and has a large number of suppliers.The Marubeni Group calls upon not only its suppliers,but also customer

140、s to cooperate on actions to create environmental and social value.In doing so,the Marubeni Group increases the competitiveness and resilience of its supply chain.Fundamental MaterialityMaterialityHuman Capital with High Social ValueThe Marubeni Group develops human capital proactively providing sol

141、utions by anticipating environmental and social demand,who are essential not only to the company but also to society,and thereby bring about innovation and provide solutions.Robust Management FoundationA robust management foundation is necessary both for maximizing the potential of our human capital

142、 and for maximizing corporate value.Enabling our human capital to use our management foundation to the fullest will ultimately lead to maximizing corporate value.Governance for Coexistence with SocietyWe will deepen our engagement with diverse stakeholders,enhance the effectiveness of the Board of D

143、irectors oversight function,and bring greater transparency to our management in order to build a governance framework that allows for improved coexistence with society and works toward achieving sustainability.Identification and Review Process of MaterialityIn response to changes in the environment

144、and society as it pertains to the Marubeni Group,the Company periodically reviews materiality based on the following process.Identification and Review ProcessSelection and prioritization of issuesExtract existing/potential environmental and social issuesReport resultInstruct/AdviseApproveSustainabil

145、ity Management Committee(Directed by the President and CEO)Board of DirectorsCorporate Management CommitteeAnalysis and consideration of the impact on the Marubeni Group Company Creed,Management Philosophy Management plan Business growth and continuity potential Risk management Strengthening of lega

146、l regulations,etc.Creation of new businessIdentification of materiality Importance to stakeholders Impact and scope of our business activities on the environment and society Impact on our earningsReflect in operational goals/targets,implement and review periodicallyAnnual reviewDialogue with stakeho

147、lders Customers and business partners Shareholders and investors Local communities EmployeesConfirm expectations from society Dialogue with experts Expectations from NGOs/NPOs Requests from rating companies and research organizations Grasp international guidelines and the trends of each country and

148、industryP.62 Sustainability for the Marubeni GroupP.16 Message from the CFO P.42 HR Strategy P.62 Sustainability Management P.70 Corporate GovernanceMaterial Issues for Improving Corporate Value(Materiality)14MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the Pre

149、sident&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation Story Material Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Long TermSECTION

150、2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataIn over 160 years since its establishment,the Marubeni Group has created value by contributing to the resolution of social issues,adjusting and expanding its role wi

151、th the changing times.We will continue to strengthen the management capital built up in our trading and investment as a general trading company in a wide range of industries and regions,leveraging these assets for still greater value creation.Internal capitalExternal capitalHuman CapitalFinancial Fo

152、undationBusiness PortfolioBusiness ExpertiseSales Foundation and NetworkNatural ResourcesThe Marubeni Groups most valuable management capital and the engine behind value creation.Continue to develop the human capital foundation to enable all Marubeni Group employees to work at the best of their abil

153、ities.A solid financial foundation is essential to steadily create value.Continue to maintain and improve the stable financial foundation through appropriate capital allocation,balance sheet management and strengthening profitability.Portfolio with diverse,highly competitive businesses and excellent

154、 earnings base particularly in non-resource fields and in the U.S.Continue to strengthen the portfolio through ongoing growth investments and upgrading and recycling existing assets.Advanced expertise accumulated across diverse fields through many years of business activities.Co-create value by comb

155、ining expertise with the knowledge of customers and partners and utilize digital transformation(DX)to generate solutions.The activities of the Marubeni Group rely on relationships of trust supported by collaboration with many customers and partners,and mutual trust is extremely important to us.Futur

156、e efforts to build more relationships of trust will lead to the co-creation of value.The advancement of the economy and society requires natural resources.As well as ensuring a stable supply of these resources,pursue business opportunities arising from the trend toward decarbonization.No.of Group em

157、ployees(Consolidated):Approx.50,000 No.of employees(Non-Consolidated):4,337 Participation rate of employees shareholding association:94.5%Total assets:Approx.8.9 trillion Shareholders equity:Approx.3.5 trillion ROE:15.2%Core operating CF:548.0 billion No.of consolidated companies:490 Ratio of net pr

158、ofit from non-resource fields:Over 60%Proportion of net profit from U.S.operations:Approx.30%Over 160 years since establishment 16 business segments Relationships of trust with numerous customers,partners and suppliers worldwide Over 70-year track record of business activity in the U.S.Forest planta

159、tion:Approx.120,000 hectares Net profit of Metals&Mineral Resources Div.:163.5 billion Avoided emissions from renewable energy power generation:Approx.1.43 million t-CO2 HR Strategy Appointment of Chief Human Resources Officer Female Empowerment at Work 2.0 Appropriate risk management and stronger i

160、nvestment discipline Improvement of credit ratings Continuous strengthening of profitability Discussion of growth strategy by business domain Strengthening Existing Business Domains Monitoring of ROIC and other efficiency metrics,PDCA cycle Cross-divisional initiatives targeting new business domains

161、 Use of DX to accelerate growth strategy In-house sharing of unsuccessful investments Strengthening of networks through diverse business opportunities Building of relationships of trust with blue-chip partners Building of sustainable and resilient value chains Green Strategy The Marubeni Long-Term V

162、ision on Climate Change Sustainable Forest ManagementRelated MaterialityEnvironmental&Social MaterialityFundamental MaterialityEnvironmental&Social MaterialityFundamental MaterialityEnvironmental&Social MaterialityFundamental MaterialityEnvironmental&Social MaterialityFundamental MaterialityEnvironm

163、ental&Social MaterialityFundamental MaterialityEnvironmental&Social MaterialityFundamental MaterialityKey Related ContentsP.42 HR StrategyP.16 Message from the CFOP.26 Message from the CSOP.32 Special Feature 1:Continuous Growth InvestmentsP.53 DX StrategyP.23 Green StrategyP.62 Sustainability for t

164、he Marubeni GroupSustainable ForestryHuman Rights&Co-development with CommunitiesSustainable&Resilient Value ChainsClimate ChangeHuman Capital with High Social ValueRobust Management FoundationGovernance for Coexistence with SocietyEnvironmental&Social MaterialityFundamental MaterialityManagement Ca

165、pitalImportance of Management CapitalSpecific Examples and Expansion (FYE 3/2024)Strengthening Measures to Improve Corporate Value15MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Maru

166、benis Accumulated Strengths Value Creation Story Material Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Long TermSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value Cr

167、eationSECTION 4:Business PortfolioSECTION 5:Corporate DataStronger Earnings Base Evident in the Fiscal Year Ended March 31,2024 In the fiscal year ended March 31,2024,net profit totaled 471.4 billion,the second-highest level in Marubenis history.ROE was high,at 15.2%,and core operating cash flow rea

168、ched 548.0 billion as the Company maintained its high capacity for generating cash.Notably,non-resources adjusted net profit was around 300 billion in the fiscal year ended March 31,2024,marking the third year in a row at this level.This major achievement is evidence of our progress in strengthening

169、 the Companys profitability.Performance in resources is inevitably impacted by changing commodity prices,but in non-resources the impact is relatively small.So long as our businesses are competitive and are able to provide added value,we can secure solid profit and aim to achieve growth.Our policy i

170、s to continue to strengthen non-resources to enhance corporate value.In contrast to the fiscal year ended March 31,2023,when there were tailwinds from higher prices for some commodities due to the COVID-19 pandemic and the Russia-Ukraine conflict,prices for various commodities began to return to nor

171、mal in the fiscal year ended March 31,2024.The fact that we were able to achieve such strong earnings against this backdrop is a testament to our efforts to reinforce the earnings base of non-resources.On the other hand,adjusted net profit in resources was 152.0 billion in the fiscal year ended Marc

172、h 31,2024,a year-on-year decline,reflecting lower commodity prices.However,Marubeni will continue to accumulate prime assets in resources by selectively acquiring additional interests as well as expanding existing assets,such as our announcement about the Chilean copper mine last year.By enhancing t

173、he cost competitiveness of our existing assets,we aim to build up resilience against market downturns while positioning ourselves to capitalize on market upswings by increasing our share of production volume.Marubeni also excels in energy trading,including LNG,crude oil,and petroleum products.While

174、leveraging our customer bases and procurement and logistics bases around the world,we will enhance these functions and fill global supply and demand gaps.Looking back at previous mid-term management strategies,Marubeni has steadily expanded profit,with a compound annual growth rate(CAGR)of 14%*for a

175、djusted net profit through the fiscal year ended March 31,2024,starting from GC2018,which was launched in the fiscal year ended March 31,2017.Without resting on our laurels,we will continue to reinforce the earnings base with the aim of moving up into the next stage of growth in profit.*CAGR calcula

176、ted using adjusted net profit for the fiscal year ended March 31,2024,and the fiscal year ended March 31,2016,the fiscal year prior to the launch of GC2018Strategic Capital Allocation and Growth Investments Marubeni has put together a business portfolio that aligns with the needs of society and its

177、customers and is nurturing strong businesses that generate cash.We allocate the cash from these businesses into future growth and shareholder returns.Through this cycle,we see our business model yielding profit growth and increasing corporate value over the longer term.It is the mission of managemen

178、t,including the CFO,to consider the strategic allocation of capital in a way that will achieve this.At present,Marubenis total assets of around 8.9 trillion generate cash of around 550.0 billion annually as core operating cash flow.In principle,yearly capital allocations draw from this cash flow.Gro

179、wth investments are currently our top capital allocation priority.Despite being a relatively smaller player in the trading company sector in terms of total assets and shareholders equity,Marubeni believes that by adhering to investment Takayuki FuruyaSenior Managing Executive Officer,Representative

180、Director,CFO;Chief Operating Officer,Investor Relations and Credit Ratings;Chairman of Investment and Credit CommitteeAim to enhance corporate value by generating and strategically allocating cash Message from the CFO16MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage fr

181、om the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation Story Material Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Long Te

182、rmSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Datadiscipline,it can maintain and improve capital efficiency while achieving further profit growth through continuous growth investments.Under GC2024,we initi

183、ally planned to spend a total of 1.0 trillion on growth investments over the three years of the plan,but as a result of higher-than-expected earnings and gains on the sale of Gavilons grain business,the Company ended up with greater scope for investment.The current forecast for growth investments is

184、 1.3 trillion.This substantial increase in growth investment compared to GC2018 and GC2021 underscores the strong determination of management to realize even higher profit growth.With investment discipline,we have selected investment projects from our abundant pipeline.Even while putting greater emp

185、hasis on growth investments,we have not lost our focus on financial discipline.Marubenis credit rating has continued to improve,thanks to our efforts to strengthen the earnings base and financial foundation.Going forward,while continuing to maintain and strengthen the financial foundation,the Compan

186、y will allocate capital to expand both profit and cash flow,which we believe will lead to further improvement in the credit rating.Enhancing Shareholder Returns Under GC2024,Marubeni is committed to increasing shareholder returns in addition to spending more on growth.In February 2023,the Company an

187、nounced a new shareholder return policy that targets a total payout ratio of around 30%-35%,along with a progressive dividend that will not be reduced regardless of earnings.Our policy is also to take a flexible approach to share buybacks.The introduction of the progressive dividend was motivated by

188、 our desire to assure shareholders of stable returns even in the face of a highly uncertain global economic environment and commodity markets.As our profits and cash flow have increased,so,too,have total returns to shareholders,including dividends and share buybacks.Over the three years of GC2024,th

189、e Company estimates a total payout of around 560.0 billion.This represents a significant increase compared with GC2021,when the total payout was roughly 260.0 billion.In the fiscal year ending March 31,2025,we decided to implement a 50.0 billion share buyback program using accumulated free cash that

190、 had been set aside for potential additional resource allocation.With this decision,the Company projects a total payout ratio of 42%,exceeding the aforementioned targeted range.We will continue to buy back shares with the intention of sustaining and improving ROE,improving per-share metrics(EPS/DPS)

191、,and fostering enhanced supply and demand dynamics for Marubeni shares.We will do so flexibly,in a way that contributes to enhancing corporate value,while monitoring the progress of growth investments as well as our balance sheet and cash flow,including shareholders equity and the net debt-to-equity

192、 ratio.Enhancing Corporate Value over the Medium-to Long-Term Under GC2024,Marubeni is determined to enhance corporate value over the medium-to long-term by sustaining and improving cash generation,sustaining and improving ROE,and reducing the cost of equity.As mentioned earlier,Marubeni recorded it

193、s second-highest-ever profit in the fiscal year ended March 31,2024,making good progress in sustaining and improving cash generation and ROE.Moreover,the Company had some success in reducing the cost of equity through moves to strengthen the financial foundation and reduce performance volatility,imp

194、rove its credit rating,and pay out a reliable and increasing dividend.As a result,Marubenis share price reached new record highs on multiple occasions throughout the fiscal year ended March 31,2024.However,we view this as just a milestone on the journey to further enhancing corporate value.The real

195、challenge starts now,as we continue to diligently pursue our objectives without growing complacent.Message from the CFOGC20182017.3-2019.3GC20212020.3-2022.3GC2024 Forecast2023.3-2025.3Adjusted net profitApprox.660.0Approx.960.0Approx.1,450.0Core operating CFApprox.960.0Approx.1,300.0Approx.1,700.0G

196、rowth investmentsApprox.620.0Approx.740.0Approx.1,290.0Shareholder distributionsApprox.150.0Approx.260.0Approx.560.0Net DE ratio0.94 times0.83 timesApprox.0.60.7 timesThree-year cumulative performance and outlook under the Mid-Term Management Strategy(Billions of yen)17MARUBENI CORPORATION INTEGRATE

197、D REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation Story Material Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives to

198、Improve Corporate Value over the Medium and Long TermSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Data A top priority is further reinforcing the earnings base.We have set our sights on the next stage of pro

199、fit growth,pursuing strategies through growth investments while increasing profit by turning around businesses with substantial room for improvement,as well as through organic growth in existing businesses.Another crucial aspect is recycling assets in the process of maintaining and improving capital

200、 efficiency.Marubenis business portfolio includes many highly competitive businesses,and has struck a good balance,generating more than half of its profits from,non-resources.Marubeni also has a number of core operating companies in the U.S.,where roughly 30%of the Groups total net profit is generat

201、ed.As such,our geopolitical risk is low.To maintain and improve capital efficiency,however,the Company must constantly update its portfolio while continuing to carefully review each business and asset.As a result of the recent ongoing increase in Marubeni share prices,our stock was trading at a PBR

202、of 1.27 times and a PER of 9.40 times as of March 29,2024.Through the initiatives I have described,we will continue to make every effort going forward to meet the expectations shareholders and investors have for growth while improving EPS,DPS,and other per-share indicators.Also,by continuing to sust

203、ain and improve ROE and reduce the cost of equity,Marubeni aims to widen equity spreads,which should positively impact its share-price valuation.We will work to augment our various forms of disclosure and engage in more extensive dialogue with investors and shareholders as a part of our efforts to e

204、nsure an accurate picture of our corporate value.Medium-to Long-Term Enhancement of Corporate ValueSustain and Improve Cash GenerationSustain and Improve ROEContinuous strengthening of earnings base/Strategic capital allocationImprove capital efficiency/Promote“Green Strategy”Reduce Cost of EquityOp

205、timize financial leverageReduce performance volatilityImprove non-financial value01002003004005002019.32020.32021.32022.32023.32024.3 Marubeni stock price TOPIXFYE 3/2022FYE 3/2023FYE 3/2024Close1,426.01,795.52,629.0High1,507.01,933.02,707.5Low842.01,142.01,719.05-year TSR*1(TOPIX;including dividend

206、s)236.5%(144.3%)264.6%(131.8%)382.0%(196.2%)PBR*21.17 times1.11 times1.27 timesPER*35.87 times5.68 times9.40 times*TSR=Total shareholder return:(Capital gain from price increase+dividends)/Invested amount(share purchase price)*PBR=Price-to-book ratio:(Fiscal year-end(March)closing price)/(Assets att

207、ributable to owners of the parent per share in relevant fiscal year)*PER=Price Earnings ratio:(Fiscal year-end(March)closing price)/(Earnings per Share Attributable to Owners of the Parent(EPS)March 29,2019March 29,2024(Price movement based on value of 100 at March 29,2019)Share price,TSR,PBR,PERMes

208、sage from the CFO18MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation Story Material Issues for Improving Corporate Value(Materiality)Manage

209、ment Capital Message from the CFO Initiatives to Improve Corporate Value over the Medium and Long TermSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataMAXIMIZING THE CORPORATE VALUEAiming to improve corpora

210、te value over the medium and long term,Marubeni takes steps to sustain and improve cash generation,sustain and improve ROE,and reduce the cost of equity.By devising and advancing measures and strategies with this in mind,Marubeni has been making steady progress on these fronts.Aiming even higher,Mar

211、ubeni will continue to take measures in the future.P.20 2 Realizing Value Creation SectionP.57 3 Initiatives for More Sustainable Value Creation Section Mid-Term Management Strategy GC2024 P.21 Green Strategy P.23 Value Creation Model P.27Continuous Growth Investments P.32 Business Operation Policy

212、P.29 Business Investment Process P.30 HR Strategy P.42 DX Strategy P.53 Shareholder Returns Policy P.16 Risk Management P.59 Sustainability for the Marubeni Group P.62 Corporate Governance P.70Optimize financial leverageReduce performance volatilityImprove non-financial valueContinuous strengthening

213、 of earnings baseStrategic capital allocationImprove capital efficiencyImprove corporate value over the medium and long termSustain and improve ROESustain and improve cash generationReduce cost of equityInitiatives to Improve Corporate Value over the Medium and Long Term19MARUBENI CORPORATION INTEGR

214、ATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at Marubeni History of Value Creation Marubenis Accumulated Strengths Value Creation Story Material Issues for Improving Corporate Value(Materiality)Management Capital Message from the CFO Initiatives

215、to Improve Corporate Value over the Medium and Long TermSECTION 2:Realizing Value CreationSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Data2SECTION21 Mid-Term Management Strategy GC2024 (April 2022 March 2025)Three Years of Putting Strategy

216、 into Practice23 Green Strategy25 Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)26 Message from the CSO27 Value Creation Model29 Business Operation Policy30 Business Investment Process32 Special Feature 1:Continuous Growth Investments42 HR Strategy Special Feature 2:Dialogue

217、 Between the CHRO and Outside Director53 DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOImprovement of Corporate ValueSustain and Improve Cash GenerationSustain and Improve ROEReduce Cost of EquityRealizing Value CreationWe explain the various measures we are taking ai

218、med at sustaining and improving cash generation and ROE in a bid to enhance corporate value,providing specific examples of our initiatives.20MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Va

219、lue Creation Mid-Term Management Strategy GC2024 (April 2022 March 2025)Three Years of Putting Strategy into Practice Green Strategy Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message from the CSO Value Creation Model Business Operation Policy Business Investment Process

220、Special Feature 1:Continuous Growth Investments HR Strategy Special Feature 2:Dialogue Between the CHRO and Outside Director DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Co

221、rporate DataRecognition of Business EnvironmentDiscontinuous changes and disruptions of existing business models will appear and only accelerate Rapid expansion of digital technology Weaker international cooperation and rising geopolitical risks End of global ultra-easy monetary policy Addressing so

222、cial issues for SDGs,rising demands for ESG managementMarubeni Group HR StrategyDeveloping the Marubeni HR EcosystemP.42 HR StrategyPromoting the growth and success of the Marubeni Groups human capital,the critical source of our corporate value(Billions of yen)FYE 3/2023FYE 3/2024FYE 3/2025(Forecast

223、)Consolidated net profit543.0471.4480.0Adjusted net profit526.0467.0460.0Core operating CF+584.2+548.0+570.0ROE22.4%15.2%Approx.15%Net DE ratio0.52 times0.55 timesApprox.0.60.7 timesResults and forecastsConsolidated net profit(FYE 3/2025)400.0 billionCore operating CF(Three-year cumulative)1,300.0 b

224、illionROE15%(Net DE ratio:Approx.0.70.8 times)Financial Targets and ProgressFinancial TargetsSustain and improve cash generationSustain and improve ROEReduce cost of equityPursuing medium-and long-term growth of corporate valueP.19 Initiatives to Improve Corporate Value over the Medium and Long Term

225、Shareholder Returns PolicyBasic dividend policy Pay a stable dividend over the long term Increase dividends in response to medium-and long-term profit growthGC2024 shareholder returns Progressive dividend policy initially setting 78 per share as an annual dividend Flexible share buybacks conducted b

226、y targeting a total payout ratio of around 30-35%Beginning of termMiddle of termPick up businesses with low capital efficiencyShort-listed businesses reviewed by Corporate Management CommitteeMake short-list of businesses after considering individual improvement plansReview of results improvement pl

227、ansImplementing improvement planPrimePlatformStrategyBusiness PoliciesP.30 Business Investment ProcessP.29 Business Operation PolicyBusiness Policies/Strengthening the Earnings BaseBusiness Policies SPP Strengthening the earnings baseBasic PoliciesThree years of putting strategy into practice1 Devel

228、op and establish a stable earnings base by strengthening current business domains and exploring new business models in a multi-layered approachReinforce/build Marubeni Group strengths in existing business domains(Horizon 1&2)while also creating new business models(Horizon 3)in domains with high grow

229、th potentialMulti-layered approach to“Growth”to enhance corporate valueHorizon 2Pursuit of strategies in existing business domainsHorizon 1Improvement of existing businessesNew business models and unapproached business domainsHorizon 3White Space2 Lead the transition to a Green economy by expanding“

230、Green Business”and“Greening”in all business domainsP.23 Green StrategyMid-Term Management Strategy GC2024(April 2022 March 2025)Three Years of Putting Strategy into Practice21MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation

231、 at MarubeniSECTION 2:Realizing Value Creation Mid-Term Management Strategy GC2024 (April 2022 March 2025)Three Years of Putting Strategy into Practice Green Strategy Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message from the CSO Value Creation Model Business Operation P

232、olicy Business Investment Process Special Feature 1:Continuous Growth Investments HR Strategy Special Feature 2:Dialogue Between the CHRO and Outside Director DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:Initiatives for More Sustainable Value CreationSECTIO

233、N 4:Business PortfolioSECTION 5:Corporate DataOrganic growth in existing businesses Aim for further growth by strengthening and enhancing competitive advantages in each business Aim to achieve further profit growth by improving profitability through turnaround effortsAdjusted net profit(FYE 3/2019-2

234、024)Major business domains in non-resourcesDivisionFYE 3/2024Adjusted net profit(Billions of yen)FYE 3/2019-2024CAGRFood I,Food II,Agri Business73.0+12%Power60.0+12%Finance,Leasing&Real Estate Business39.0+10%Construction,Industrial Machinery&Mobility27.0+16%(Billions of yen)FYE 3/2019Consolidated25

235、6.0Non-resources197.0Resources69.0FYE 3/2024467.0307.0152.0FYE 3/2019-2024IncreasesCAGR*1+211.0+13%+110.0+9%+83.0+17%*1.CAGR:Compound Annual Growth Rate*2.Excluding changes in working capital and others.Figures for shareholder distributions are aggregated in the fiscal year to which the profit,i.e.,

236、the source of funds is attributed,and are different from cash flow*3.CAGR is calculated with the adjusted net profits for FYE 3/2016,the fiscal year just before the start of GC2018,and for FYE 3/2024Capital allocation Core operating cash flow has significantly grown compared to the GC2024 initial pl

237、an as a result of improved profitability.Divestments have more than doubled due to the sale of Gavilons grain business Consequently,additional capacity for allocation of management resources has been created.Continuing to work on improving and strengthening the financial base,while enhancing growth

238、investments(new investments,CAPEX and others)and shareholder returns The net DE ratio is expected to be around 0.6 to 0.7 times for the time beingGC2024 three-year cumulative capital allocation*2(Billions of yen)Initial plan(Announced in Feb.2022)Net DE ratio:Approx.0.70.8 timesCurrent outlook(After

239、 free cash allocation)Net DE ratio:Approx.0.60.7 timesCash InCash OutDivestment 200.0Shareholder distributionsNew investments,CAPEX and others1,000.0Core operating CF1,300.0Free cashCash InCash OutDivestments 260.0Shareholder distributions560.0Sale of Gavilons grain business 330.0Free cash(internal

240、reserves)Approx.440.0Core operating CF1,700.0New investments,CAPEX and others1,290.0Growth investments Growth investments during GC2024 are progressing smoothly,forecasted to be approximately 1.3 trillion for the three-year total against the 1 trillion plan Our project pipeline is abundant.Going for

241、ward,while emphasizing financial and investment discipline,we aim to maintain and enhance a 15%ROE through growth investments and asset recycling,striving towards increasing profitFor Further Profit Growth An earnings base of 400.0 billion to 450.0 billion annually has been established in GC2024,thr

242、ough strengthening of existing business domains With each mid-term strategy,the profit size has steadily expanded,achieving a CAGR of 14%since the start of GC2018 Aiming for the next profit stage via organic growth of existing businesses and strategic pursuits through growth investmentsTrends in adj

243、usted net profit(Three-year total of each mid-term strategy)*3CAGR:14%GC2021(FYE 3/2020-2022)Approx.960.0 billionGC2024(FYE 3/2023-2025)ForecastApprox.1,450.0 billionGC2018(FYE 3/2017-2019)Approx.660.0 billionGC2018GC2021GC2024For the next profit stage via organic growth of existing businesses and s

244、trategic pursuits through growth investmentsTrends in growth investments(Three-year total of each mid-term strategy)GC2018FYE 3/2017-2019GC2021FYE 3/2020-2022GC2024FYE 3/2023-2025 forecastApprox.0.6 trillionApprox.0.7 trillionApprox.1.3 trillionPost-GC2024Mid-Term Management Strategy GC2024(April 20

245、22 March 2025)Three Years of Putting Strategy into Practice22MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value Creation Mid-Term Management Strategy GC2024 (April 2022 March 2025)Three Ye

246、ars of Putting Strategy into Practice Green Strategy Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message from the CSO Value Creation Model Business Operation Policy Business Investment Process Special Feature 1:Continuous Growth Investments HR Strategy Special Feature 2:Di

247、alogue Between the CHRO and Outside Director DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataAspiring to become a Forerunner in Green Business*Green Business:Sus

248、tainable businesses which have positive effects on the environment such as decarbonization and the circular economy,and adjacent businesses which supply those businesses with non-substitutable materials,etc.Reducing negative impacts on the environment and contributing to the transition to a circular

249、 economy Building sustainable supply chains through cooperation with business partners Businesses essential for transition to a decarbonized society(natural gas,LNG,etc.)Pursuit to be“Greener”(Utilization of ICT,financially supporting sustainability businesses,supplying sustainable commodities,etc.)

250、All DomainsPromote“Greening”initiatives across all other Marubeni Group business domains to reduce environmental impact,support the transition to a circular economy,and build sustainable supply chainsGreen BusinessesDecarbonizationCircular EconomyWater ResourcesBio-DiversityCreating new Green Busine

251、ss through cross-sectional approaches and utilization of business connectionsExpanding Green Business based on the current business base,which is already strong and profitableHorizon 1&2Horizon 3Renewable EnergyForestryAgri-InputsNew EnergyDecarbonization SolutionsEco-friendly Food ProductsDecentral

252、ized Power,Battery Storage,and Supply-Demand AdjustmentsRecycling of Materials and ResourcesCopper,AluminumWater InfrastructureStrengthen/expand current Green Business while creating new Green Business through cross-sectional approaches and utilization of business connectionsTaking advantage of the

253、high multiplier effect inherent in the diversity and breadth of the Marubeni Groups operations,we aim to build sustainability across all our supply chains.In this way,we aspire to become a forerunner in Green business in realizing a sustainable society.P.106 State of Major Green Business Initiatives

254、P.108 Major Progress in Greening All Business DomainsGreen Strategy23MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value Creation Mid-Term Management Strategy GC2024 (April 2022 March 2025)

255、Three Years of Putting Strategy into Practice Green Strategy Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message from the CSO Value Creation Model Business Operation Policy Business Investment Process Special Feature 1:Continuous Growth Investments HR Strategy Special Feat

256、ure 2:Dialogue Between the CHRO and Outside Director DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataGoals of the Marubeni GroupThe Marubeni Group strives to be

257、a forerunner in green business by contributing to nature positive and the realization of the international communitys goal*1 of living in harmony with nature in partnership with our stakeholders.Living in harmony with nature will require decarbonization and the transition to a circular economy.By ex

258、panding our green businesses and greening in all business domains,we aim to maximize corporate value through contributions to going“Green.”Respecting Human Rights(Foundation of Corporate Activities)Nature PositivePromoting Throughout the Supply ChainLiving in Harmony with NatureTransition to a Circu

259、lar EconomyDecarbonizationVolume of carbon stocks in our forests*6Increasing the volume of carbon stocks per hectare and expanding areas for afforestation,managed forests to enlarge the overall carbon stock.As of March 31,2020:Approx.11 million t-CO2As of March 31,2023:Approx.12 million t-CO22030 Fo

260、recast:Approx.19 million t-CO2Renewable energySteady progress in expanding the renewable energy IPP business and related power retail business.Capacity*4Avoided Emissions*5As of March 31,2020:3,592 MWFYE 3/2020:Approx.1.01 million t-CO2As of March 31,2024:5,180 MWFYE 3/2024:Approx.1.43 million t-CO2

261、Major Progress in Green Business and GreeningCopper Projected annual equity production capacity(refined copper equivalent)*3Increase production capacity through the expansion project at the Centinela copper mine and the additional acquisition of interests in the Los Pelambres copper mine in Chile.As

262、 of March 31,2020:Approx.150 thousand tonsAs of March 31,2024:Approx.160 thousand tons2028 Forecast:Approx.200 thousand tonsCreating new green businesses Strengthening efforts in the areas of hydrogen,ammonia,SAF and other synthetic fuels,CCUS business,etc.,through the commencement of Front End-Engi

263、neering Design(FEED)study for individual projects,etc.Promoting efforts in each of the following areas:decentralized power generation,battery storage,and supply-demand adjustments,recycling of materials and resources,etc.*1.International goals of the Kunming-Montreal Global Biodiversity FrameworkThe

264、 15th Conference of the Parties to the UN Convention on Biological Diversity(COP15)of December 2022 states its Nature Positive mission for the year 2030 as being“to take urgent action to halt and reverse biodiversity loss to put nature on a path to recovery.”The“Green”envisaged by the Marubeni Group

265、 aligns with the international goal for 2030 of becoming nature positive and the vision of living in harmony with nature by 2050.*2.The Taskforce on Nature-related Financial Disclosures*3.Contributing to decarbonization by supplying critical minerals used for electrification,etc.All three copper min

266、es in which Marubeni participates have completed 100%conversion to renewable energy sources.*4.The Marubeni Groups total net generation capacity from renewable energy sources and the contracted capacity from renewable generators in power retail business.*5.Avoided emissions of the Groups renewable e

267、nergy power generation business using the following formula:Installed capacity 24 hours 365 days capacity factor(%)the average emission factor of the country or region of location available equity share(%).*6.The calculation of above/below ground biomass is based on the Tier 2 approach in Chapter 4,

268、“Forest Land,”in Volume 4 of the“2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.”Major ProgressThe Sustainability Management Committee reviews progress on green strategies of each business division,and periodically reports to the Corporate Management Committee an

269、d the Board of Directors on this progress.Nature-related risks and opportunities are incorporated into the Marubeni Groups strategies through a process that comprehensively evaluates the interactions between the Groups business activities and nature,based on TNFD*2 recommendations.Green Strategy24MA

270、RUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value Creation Mid-Term Management Strategy GC2024 (April 2022 March 2025)Three Years of Putting Strategy into Practice Green Strategy Performanc

271、e by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message from the CSO Value Creation Model Business Operation Policy Business Investment Process Special Feature 1:Continuous Growth Investments HR Strategy Special Feature 2:Dialogue Between the CHRO and Outside Director DX Strategy Specia

272、l Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Data(Billions of yen)119.92,308.21,793.12,248.81,502.6910.7Approx.8.9 trillionTotal Assets(As of March 31,2024)*1.Effective from FYE 3/

273、2025,parts of“IT Solutions”have been incorporated into“Infrastructure Project.”In conjunction with this organizational change,operating segment information for FYE 3/2024 has been restated and presented accordingly,for the sake of comparison with FYE 3/2025 forecasts.*2.Adjusted net profit:net profi

274、t excluding one-time items,shown in an approximate figure.The sum of the figures for each segment may not match the consolidated total due to rounding.*3.Classification by business field is as follows:Resources:Total of Energy Div.and Metals&Mineral Resources Div.excluding Steel Products Dept.;Other

275、:Total of Next Generation Business Development Div.,Next Generation Corporate Development Div.,and Other;Non-resource:All other than above.Performance by Business Group(FYE 3/2024 results,FYE 3/2025 forecasts)Business GroupSegment*1Consumer Products GroupLifestyle Div.Forest Products Div.IT Solution

276、s Div.Food&Agri GroupFood Div.-IFood Div.-IIAgri Business Div.Materials GroupChemicals Div.Metals&Mineral Resources Div.Energy&Infrastructure Solution GroupEnergy Div.Power Div.Infrastructure Project Div.Transportation&Industrial Machinery,Financial Business GroupAerospace&Ship Div.Finance,Leasing&R

277、eal Estate Business Div.Construction,Industrial Machinery&Mobility Div.CDIO Next Generation Business Development Div.Next Generation Corporate Development Div.OtherNet ProfitAdjusted Net Profit*2-50.00100.0200.0300.0400.0500.0600.0467.0460.029.029.0162.0162.082.082.083.083.0112.0112.0(3.0)(3.0)(5.0)

278、(5.0)23.023.0163.0163.073.073.0105.0105.096.096.012.012.0(5.0)(5.0)471.4480.028.028.083.083.0162.0162.0129.0129.0112.0112.0(2.0)(2.0)3.53.576.576.5170.5170.5103.5103.597.497.422.722.7(2.7)(2.7)(32.0)(32.0)Consolidated total(Billions of yen)(Billions of yen)2024.32025.3(Forecast)2024.32025.3(Forecast

279、)Non-resources*3288.5325.0307.0321.0Resources*3162.9189.0152.0147.0Other*320.0(34.0)8.0(8.0)40.325MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value Creation Mid-Term Management Strategy G

280、C2024 (April 2022 March 2025)Three Years of Putting Strategy into Practice Green Strategy Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message from the CSO Value Creation Model Business Operation Policy Business Investment Process Special Feature 1:Continuous Growth Investm

281、ents HR Strategy Special Feature 2:Dialogue Between the CHRO and Outside Director DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Datasignificant future growth in Ho

282、rizon 3.I believe all of this is the fruit of our diligent efforts to put the strategies set out in GC2024 into action.Pursuing a Future Vision and Evolution in Each Business Field,Maximizing the Value of the Business Portfolio Our emphasis in our continuous growth investments is on Business Policie

283、s SPP.This is the basic concept common to all business models introduced in the GC2021 previous Mid-Term Management Strategy.It is also an approach that has played a vital role in the transformation of the Marubeni Group over the past few years.With the introduction of Business Policies SPP,we no lo

284、nger make investments with the aim of buying profits,but instead rigorously pursue an approach based on Strategy-Focused investments,which I believe has resulted in significantly more effective business investments.In our day-to-day business operation,our focus is on maximizing the value of the busi

285、ness portfolio by pursuing a future vision and evolution in each business field.This includes proactively implementing business strategies by the Marubeni Group,expanding and leveraging the Groups platforms,and developing businesses with promising prospects of geographic,market,or product-line expan

286、sion into platforms.Periodic Evaluations to Discover Issues Early on and Strengthen the Earnings Base The key to strengthening the earnings base is not only to pursue future vision but also to discover problems in our existing businesses early on.Improving profitability by Working Diligently to Put

287、Strategies into Action For the Marubeni Group,strengthening our existing business(Horizon 1&2)and creating new business models(Horizon 3)are key drivers of our value creation.Continuous growth investments in these areas are essential.Growth investments during the period of GC2024 Mid-Term Management

288、 Strategy came to approximately 700 billion as of the end of the fiscal year ended March 31,2024,and we continue to move ahead with growth investments in line with the balance envisaged in GC2024,with around 80%of investments going into Horizon 1&2 and around 20%into Horizon 3.We are making solid he

289、adway in achieving steady profit growth in Horizon 1&2 and in sowing the seeds for upgrading and recycling our existing businesses through improved capital efficiency is essential to growth in our corporate value.Our task is to take swift action to improve problematic situations in a timely fashion

290、without missing out on any opportunities.We introduced periodic evaluations using a PDCA cycle to raise the level of profitability for these our existing businesses and assets.We monitor capital efficiency and the risk/return ratio of our existing businesses each term,based on ROIC,CROIC,and RORA.Fo

291、r businesses that need a helping hand,we promptly formulate and put into action measures to improve the quality of the assets in a timely manner,leading to improved profitability.Further Cultivating the Japanese Market Our aggressive efforts since 2020 to cultivate the Japanese market are bearing re

292、sults.We are making headway on a range of projects that draw on the Companys comprehensive strengths:We have signed partnership agreements with various local governments and universities to promote an array of initiatives aimed at revitalizing local communities,and are also working on projects such

293、as supporting regional tourism.Social issues in Japan,including a declining birthrate and aging population,as well as global trends,including digitalization,climate change measures,and shifts in the supply chain,are opening up numerous new growth areas and creating business opportunities.Going forwa

294、rd,we will continue to work with companies in various regions around Japan and through collaboration with industry,government agencies,and academic institutions to strengthen our existing businesses and create new businesses as we strive for further growth in corporate value.Hiromichi MizunoManaging

295、 Executive Officer;Chief Strategy Officer(CSO);Regional CEO for Japan Business;Vice Chairman of Investment and Credit Committee;Chief Sustainable Development Officer(CSDO)Message from the CSO26MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTIO

296、N 1:Value Creation at MarubeniSECTION 2:Realizing Value Creation Mid-Term Management Strategy GC2024 (April 2022 March 2025)Three Years of Putting Strategy into Practice Green Strategy Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message from the CSO Value Creation Model Bu

297、siness Operation Policy Business Investment Process Special Feature 1:Continuous Growth Investments HR Strategy Special Feature 2:Dialogue Between the CHRO and Outside Director DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:Initiatives for More Sustainable Va

298、lue CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataWe constantly refine our business portfolio through continuous growth investments and upgrading and recycling of assets.Cash generated by our businesses is reinvested for growth or allocated to shareholder returns with the aim of furthe

299、r profit growth and medium-to long-term corporate value enhancement.Business Policies SPPGroup Governance PolicyBusiness Management PoliciesManagement CapitalInternal capitalExternal capitalBusiness expertiseHuman capitalFinancial foundationBusiness portfolioSales foundation and networkNatural resou

300、rcesAchieve steady profit growth by prioritizing investments in existing business domains where Marubeni has competitive advantages and high profitability(Horizon 1&2).In addition,invest in new domains to develop new profit pillars for the future(Horizon 3),based on rigorous target selection.Continu

301、ous Growth InvestmentContinuous strengthening of business portfolioEnhance Corporate ValueAsset Upgrades/RecyclingBy monitoring existing assets in each individual project and business,we seek to engineer improvements to contribute to greater capital efficiency.P.30 Business Investment ProcessP.32 Sp

302、ecial Feature 1:Continuous Growth InvestmentsAccumulated Strengths of Marubeni GroupEarnings base in non-resource fieldsCompetitiveness in the U.S.marketFunctions and Comprehensive Strengths of a General Trading CompanyMarketingLogistics/FinanceNetwork ConstructionStable Product SupplyBusiness Devel

303、opment/ManagementProject ManagementRisk ManagementInformation Analysis/UsageFunctionsTradingBusiness investmentDiversity of sectorsGlobal footprintComprehensive StrengthsDrivers of value creationHorizon 1Improvement of existing businessesHorizon 3New business models and unapproached business domains

304、Horizon 2Pursuit of strategies in existing business domainsexisting business domainsCreation of new business modelsStrengthening existing business domainsContinuous growth investmentValue Creation ModelAsset upgrades/recycling27MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupM

305、essage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value Creation Mid-Term Management Strategy GC2024 (April 2022 March 2025)Three Years of Putting Strategy into Practice Green Strategy Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message f

306、rom the CSO Value Creation Model Business Operation Policy Business Investment Process Special Feature 1:Continuous Growth Investments HR Strategy Special Feature 2:Dialogue Between the CHRO and Outside Director DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:

307、Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataMarubeni emphasizes further strengthening and enhancing its existing businesses by allocating growth investments to the existing business domains(Horizon 1&Horizon 2)where we have competitiveness,mainl

308、y in the non-resource fields.Investment in existing strong business domains increases chances of success.It is also expected to contribute to sustaining and improving cash generation and ROE.This long-standing policy is a strong driver of our value creation.In addition,to develop new profit pillars

309、for the future,we will rigorously select and implement initiatives in new business domains(Horizon 3).Taking on the Challenge of New Business DomainsUpgrading through growth investmentStrengthening existing business domainsCompetitive advantagesValue added and functions appreciated by customers,cost

310、 competitiveness,stable supply,effective risk management,trust,etc.Existing businessesHorizontal expansionHorizon 3New business models and unapproached business domainsCreation of new business modelsEnhancement of competitive advantage We pursue profit growth and high ROE that outperform the market

311、The generated cash is strategically re-allocated as the whole Groups management resource(growth investments,shareholder returns,internal reserves,etc.),and utilized for further enhancement of our corporate valueHorizon 1 Improvement of existing businessesHorizon 2 Pursuit of strategies in existing b

312、usiness domainsValue Creation Model Competitive advantages are the source of added value Realize high profitability and capital efficiency by improving competitive advantagesAim to further develop the strengthened businesses throughetc.expansion in the same business domains,horizontal expansion to o

313、ther regions,extension to neighboring business domains,value by scaling up sales volume and assets,improving profitability and reducing costsincrease businessEnhance competitive advantage throughcontinuous growth investments,Reduction of unit costScaling-up of sales volume and assetsImprovement of p

314、rofitability28MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value Creation Mid-Term Management Strategy GC2024 (April 2022 March 2025)Three Years of Putting Strategy into Practice Green Str

315、ategy Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message from the CSO Value Creation Model Business Operation Policy Business Investment Process Special Feature 1:Continuous Growth Investments HR Strategy Special Feature 2:Dialogue Between the CHRO and Outside Director DX

316、 Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate DataBusiness Policies SPP SPP(Strategy Prime Platform)Business Policies SPP is the basic concept common to all Marubeni

317、 Group business models.By making Strategy-Focused business investments based on SPP,we focus on making better targeted,more rigorously selected investments,and by taking into account SPP in business operations we monitor and strengthen existing businesses and expedite the divestment and recycling as

318、sets with the aim of maximizing the value of our business portfolio.Maximizing the value of business portfolio Strategically selecting new investments Strengthening existing businesses Expediting divestment and recycling assetsBusiness Policies SPPStrategyPrimePlatformBusiness PoliciesStrategy Strat

319、egy policies involve closing the gap between our future vision and the present in each business field.It expresses our renewed commitment to staying intensively strategy-focused This includes exploiting dynamic value creation via digital transformation(“DX”)Prime Prime policies involve taking the in

320、itiative to execute the strategies across all Marubeni Group businesses.If we were to merely invest in businesses,we would have much fewer opportunities to create solutions to the challenges and issues facing society and customers.We would also have less growth potential.We have accordingly made a c

321、ommitment which means proactively formulating and executing with the aim of increasing the value of our businesses.Platform policies involve leveraging the Marubeni Groups platform to substantially grow its businesses We treat businesses with promising prospects of geographic,market or product-line

322、expansion as platforms.We will pursue expansion of such businesses through M&As and/or organic growth with the aim of long-term earnings growth In addition,we will employ the Groups knowledge,know-how,and assets to create new value by synergistically combining a wide variety of internal and external

323、 expertisePlatformMarubeni Group Governance PolicyThe overall growth of Marubeni is linked to that of the businesses conducted by the large number of companies in the Group.To enable each Group company to pursue growth independently,Marubeni oversees the business management of every Group company as

324、 the shareholder and business owner,based on a common set of Group policies and strategies.This system of operational execution and management is designed to help improve and maximize corporate value.Marubeni Group Governance Policy is a policy shared by the entire group that ensures this system in

325、terms of governance.Group companiesRole:Execution of management of individual businessesAutonomous growth,maximization of corporate valueMarubeniRole:Development of Group management policy and basic strategy;Supervision of the management of Group CompaniesConstructive dialogueManagement transparency

326、(i)to share and disseminate Marubeni Group management policies(ii)to build and strengthen Group governance by clarifying the roles and responsibilities of the Corporation(as shareholder/business owner)and Group companies(iii)to maintain and plan the codification of necessary systems,policies,and rul

327、esGroup Governance PolicyImproving management of Group CompaniesBusiness Operation Policy29MARUBENI CORPORATION INTEGRATED REPORT 2024Values of the Marubeni GroupMessage from the President&CEOSECTION 1:Value Creation at MarubeniSECTION 2:Realizing Value Creation Mid-Term Management Strategy GC2024 (

328、April 2022 March 2025)Three Years of Putting Strategy into Practice Green Strategy Performance by Business Group (FYE 3/2024 results,FYE 3/2025 forecasts)Message from the CSO Value Creation Model Business Operation Policy Business Investment Process Special Feature 1:Continuous Growth Investments HR

329、 Strategy Special Feature 2:Dialogue Between the CHRO and Outside Director DX Strategy Special Feature 3:Dialogue Between the CDIO and SmartestEnergy CEOSECTION 3:Initiatives for More Sustainable Value CreationSECTION 4:Business PortfolioSECTION 5:Corporate Data Investment decisionTo strengthen our

330、business portfolio,we make business investments as a means to acquire functions,human resources,knowledge,and other assets that our group does not have.We carry out business investments by implementing the process shown here for each project,maintaining investment discipline while selecting projects

331、,and after execution,by utilizing our functions to improve the quality of assets,developing a business portfolio that allows for sustainable profit growth over the medium to long term.Strategy formulation and origination1.Investment decision2.PMI(Post Merger Integration)3.4.Upgrading and recycling a

332、ssetsProcess for Maximizing the Value of the Business PortfolioWe define a future vision for each business area and formulate growth strategies to achieve it.In order to make Strategy-Focused investments,we emphasize origination that is in line with the growth strategies of each business area and ag

333、rees with Business Policies SPP(see page 29).Corporate Staff Groups participate in the examination of each project as appropriate,using their expertise to assist in project origination,and also analyzing and examining each project from a check perspective.We have created a multilayered decision-making process to help pursue investment returns and control risks,while also delegating authority to ea