1、Marubeni Corporation 2022GLOBALCROSSVALUEPLATFORMINTEGRATED REPORT 2022 CONTENTSReporting PeriodApril 1,2021-March 31,2022The contents of the publication include some information before and after the reporting period.Guidelines The Global Reporting Initiative(GRI)Sustainability Reporting Standard IS

2、O26000 Guidance on Social Responsibility IFRS Foundation:Integrated Reporting Framework Ministry of Economy,Trade and Industry(METI)Guidance for Collaborative Value CreationDisclaimer Regarding Forward-Looking Statements and Original LanguageIntegrated Report 2022 contains forward-looking statements

3、 about the 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

4、,uncertainties 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 com

5、modity and 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-lookin

6、g statements.The Company has no responsibility for any possible damages arising from the use of information on Integrated Report 2022,nor does the Company have any obligation to update these statements,information,future events or otherwise.Integrated Report 2022 is an English language translation o

7、f the materials 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 a

8、ttributable to owners of the parent”is described as“Consolidated Net Profit”/“Net profit”in this report.Values of the Marubeni Group 1Message from the President&CEO 2Value Creation at Marubeni 8History of Value Creation 10Value Creation Story 12The Foundations for Value Creation/Fundamental Material

9、ity 14Creating New Values with Stakeholders 15Business Models 16Business Strategy Review 18Mid-Term Management Strategy GC2024 20Realizing Value Creation 24Message from the CFO 26Putting Business Policies SPP into Practice 30Business Investment Process 32Message from the CDIO 34DX Strategy of Marube

10、ni Group 34Upgrading Promotion of Next Generation Initiatives 37Message from the CAO 38GC2024 Marubeni Group HR Strategy“Marubeni HR Ecosystem”39Message from the CSDO 44Sustainability for the Marubeni Group 45Initiatives to Improve Corporate Value 46Environmental and Social Materiality 50Risk Manage

11、ment 60Response to Business Risks 62Roundtable Discussion with Outside Directors 64Corporate Governance 68Corporate Management 80Business Portfolio&Strategy 84Consumer Products Group 86Materials Group 96Energy&Infrastructure Solution Group 102Transportation&Industrial Machinery,Financial Business Gr

12、oup 108CDIO 114Corporate Data 118Net Profit of Major Group Companies 118Financial Data 120Non-Financial Data 122Outstanding Balance of Country Exposure 124Organization 126Company Profile 127IR Activities 128External Evaluation 128Stock Information 129To Investorshttps:/ Businesshttps:/ Companyhttps:

13、/ informationNon-financial informationMarubeni ReportingThe Marubeni Group Integrated Report is created to help improve the understanding of a broad range of stakeholders while building public trust.Besides the values,business operations and strategies that drive creation of value,the Integrated Rep

14、ort 2022 focuses on sustainability initiatives and the potential for future sustainable growth by explaining how the Marubeni Group has evolved and grown to date.In compiling this report,we have used the IFRS Foundations Integrated Reporting Framework and“Guidance for Collaborative Value Creation,”p

15、ublished by the Ministry of Economy,Trade and Industry(METI),as references,together with the views of a wide range of stakeholders.Adhering to the spirit of the Company Creed of“Fairness,Innovation and Harmony,”the Marubeni Group is proudly committed to the goals of supporting social and economic de

16、velopment alongside global environmental protection through fair and upright corporate activities.Amid increasing awareness of the importance of sustainability,we hope this report helps enlighten how Marubeni is taking up the challenge of pursuing gains in social and environmental value,as well as e

17、conomic value,by putting this philosophy into practice.Editorial PolicyValues of the Marubeni GroupIn accordance with the spirit grounded in“Fairness,Innovation and Harmony,”the Marubeni Group is proudly committed to social and economic development and safeguarding the global environment by conducti

18、ng fair and upright corporate activities.Management PhilosophyOur visionThe Global crossvalue platform clarifies and reaffirms the Marubeni Groups raison dtre,and represents the Groups commitment to increase corporate value in a lasting way.Committed to creating solutions for our customers and the w

19、orld.creating value through innovative solutions for our customers and for the worldGlobal crossvalue platformFairnessAct with fairness and integrity at all times.InnovationPursue creativity with enterprise and initiative.HarmonyGive and earn the respect of others through cooperation.Company CreedOu

20、r Company Creed,“Fairness（正）,Innovation（新）,and Harmony（和）,”dates back to Marubenis first president,Shinobu Ichikawa.This Creed is the starting point for the Marubeni Group and itsemployees,and encapsulates values that act as constant guidepostseven in times of rapid change.MARUBENI CORPORATION INTEG

21、RATED REPORT 20221Message from the President&CEOStanding on a new stage,we will create value through innovative solutions for our customers and for the worldPresident&CEOMasumi KakinokiMARUBENI CORPORATION INTEGRATED REPORT 20222MARUBENI CORPORATION INTEGRATED REPORT 2022Message from the President&C

22、EO The world in which we live today is awash with uncertainty.Discontinuous changes,disruptions to the status quo and innovation have become increasingly evident and accelerating.Amid the ongoing COVID-19 pandemic and a global situation fraught with geopolitical risk,we must address the uncertaintie

23、s created by this fast-changing world and society based on appropriate evaluation and responses.Reforming business models and offering solutions that anticipate societal needs and issues are part of the DNA of the Marubeni Group.The sheer unpredictability of this era prompts us to re-embrace the val

24、ues of“Fairness,Innovation,and Harmony”that are in our company creed.As an“everlasting partner in closing the gaps around the world,”we aspire to create new value in partnership with all our stakeholders by addressing the challenges we share with our customers and society at large.Under the previous

25、 GC2021 Mid-Term Management Strategy covering the period from April 2019 to March 2022,Marubeni underwent a three-year transformation in which we built a stronger foundation.In the first year of GC2021,the fiscal year ended March 31,2020,we booked large impairment losses that had a major impact on o

26、ur financial foundation.By the final year of GC2021,the fiscal year ended March 31,2022,we achieved record net profit within a V-shaped recovery as our group worked hard together as one toward restoring trust from our stakeholders.One factor in this achievement was our efforts to strengthen and impr

27、ove existing businesses.While targeting growth of existing operations might seem simple on the surface,under GC2021,we have proved that it can be a highly effective growth strategy.One example is Creekstone Farms Premium Beef LLC,a U.S.-based subsidiary involved in the processing and sale of beef.Al

28、though our initial investment amount was relatively small,we have invested over time to expand processing capacity,build cost-competitiveness,and improve operations.By addressing the market demand and maintaining a stable supply despite the pandemic,we have generated significant growth.Another U.S.-

29、based success story is our agri-input retail subsidiary,Helena Agri-Enterprises,LLC,whose strength lies in the development of customer-oriented products and services.Helena has expanded through continuous investments,including capacity investment and small-to-medium-scale acquisitions.By remaining “

30、strategy focused,”we will take the initiative across the Marubeni Group to broaden our regional,sector,and product platforms as we work to reinforce existing businesses further.On the asset divestment/recycling front,in the fiscal year ended March 31,2022,we decided to sell the grain business of Gav

31、ilon Agriculture Investment,Inc.,a business that has required substantial management capitals.This was an important decision aimed at improving the efficiency of our overall asset portfolio from a medium-to-long-term perspective.While the business is profitable to a certain degree under the current

32、favorable conditions,it requires substantial working capital,and the level of its profitability has been subordinated to the Marubeni Groups average.Having considered the feasibility of a sale of the business in the context of changing external conditions and growth potential,we were able to secure

33、good terms for the divestment amid favorable conditions and strong earnings.We believe divestment helped us maximize the value of this asset.Reflecting the importance of applying our valuable internal resources to build corporate value with a high degree of certainty,we continue to focus on making i

34、nvestments better targeted and rigorously selected.The major impairment losses that we booked in the fiscal year ended March 2020 led to discussions about the lessons from past investment failures at multiple meetings of the Board of Directors and the Corporate Management Committee.Heeding these les

35、sons and to prevent a repeat of past failures,we,as management of Marubeni,agreed on the need to embed improved investment discipline,governance and transparency within the corporate culture of Marubeni.We moved to alter our mindset to ensure we would not make the same mistakes again.It became an op

36、portunity to foster a corporate culture that focuses on investment policies not from a purely investment-oriented mindset,but from a more strategic one that thoroughly pursues business essentials,holds a greater sense of responsibility for business success,and discusses matters with honesty,sincerit

37、y,and openness.I recognize that people who witnessed our past impairments have said that failures may be repeated and that our aggressive stance requires close monitoring.However,my view is that business is about earning a return for the risk assumed.Just as Anticipating changes based on values of“F

38、airness,Innovation,and Harmony”“Three Years of Transformation”:stronger foundation built amid rapidly changing conditionsMARUBENI CORPORATION INTEGRATED REPORT 20223there are no risk-free businesses,excessive risk avoidance prevents us from taking on challenges.Hence,the important thing is to assume

39、 a degree of risk commensurate with the capability of the Marubeni Group and then to manage each business properly.Since April 2022,reflecting our success in rebuilding and strengthening our financial foundation due to improvements in income made under GC2021,three credit rating agencies have upgrad

40、ed our credit rating.Marubenis share price has bounced back to 14-year highs.I believe these outcomes are the result of us taking the initiative to strengthen existing businesses and rebuild our financial foundation in a balanced way.These three years of transformation for the Marubeni Group,in whic

41、h we have made improvements in quality while maintaining discipline,have created the conditions for us to pick up the pace going forward.The GC2024 Mid-Term Management Strategy(April 2022March 2025)defines this three-year period in terms of putting strategy into practice.Under GC2021,we looked at th

42、e period to 2030 in terms of concurrent opportunities and threats.Our basic stance remains the same:We still see the post-pandemic world characterized by massive uncertainty and discontinuous change,with rapidly emerging disruption and innovation challenging preconceived notions.The Marubeni Groups

43、mission is still to create value through innovative solutions for our customers and for the world.In such circumstances,we have formulated two basic policies for GC2024.The first is to strengthen existing businesses and build new business models using a multi-layered approach.The second is to expand

44、“Green Businesses”and“Greening”in all business domains.In terms of the first policy,we see efforts to strengthen existing businesses and explore new business models as being of equal importance.Our current strong earnings undoubtedly show the benefit our existing businesses have derived from high pr

45、ices for commodities.We plan to build on this by investing more capital into our existing businesses to raise cost-competitiveness,improve profitability further,and steadily expand into surrounding regions,domains,and products.Investing in areas we know or where we have advantages,or steadily expand

46、ing into other peripheral sectors,is a high-probability growth strategy for the Marubeni Group.On the other hand,new business model development is an area where I feel we need to do more.Creating new businesses requires a lot of time and effort.Mindful of this,we continue to sow seeds in new sectors

47、,focusing mainly on new domains with growth potential on the periphery of existing business areas and on next-generation businesses.My conviction is that as the world is changing,trading companies current businesses will disappear some day,and so my message is that we must take up the continual chal

48、lenge to develop new businesses.We established the Next Generation Corporate Development Division in April 2022 to deepen our efforts in finding new growth domains.This division is targeting growth sectors that we have not focused on before such as next-generation consumer businesses.Not only in thi

49、s division,but all business divisions and all Marubeni Group employees are also making efforts to create new business models with a sense of speed.The second GC2024 basic policy is our“Green Strategy.”We are not trying to re-invent the wheel here.Marubeni has always put a high priority on sustainabi

50、lity and in order to show that we will work with greater importance than ever before,we have now effectively elevated this to the status of a basic policy for the Marubeni Group.Companies must undertake initiatives for sustainability,such as decarbonization,transitioning to a circular economy,protec

51、tion of water resources and bio-diversity,and building sustainable supply chains.These are social issues that need to be solved and an obligation to all companies to fulfill.We are in an era where we cannot prosper as a business if we ignore the green imperative,nor can we hope to take our“Putting S

52、trategy into Practice”:Aspiring to leadership in an era without role models over the next three yearsMARUBENI CORPORATION INTEGRATED REPORT 20224MARUBENI CORPORATION INTEGRATED REPORT 2022Message from the President&CEObusiness to the next stage.For this reason,we must take the initiative to address

53、this key social issue.Under the GC2024,we aspire for Marubeni to be a forerunner in “Green Business,”since this will lead to further enhancement of our corporate value.We have been ahead of other companies when we announced in 2018 that the Marubeni Group would not enter into any new coal-fired powe

54、r generation business as a general principle,and announced a target ratio of power generated by renewable energy sources.Aside from these decarbonization initiatives,the Marubeni Group can also contribute to sustainability across a wide range of business sectors.We define sustainable business to gen

55、erate positive impact for the global environment as“Green Businesses”.Going forward,in addition to strengthening and expanding these areas of business,we will seek to create new“Green Businesses”using a cross-sectional approach across the entire Marubeni Group to take advantage of our operational ba

56、se and global network of business connections.The initiatives be a forerunner in green business are not just about strengthening our green businesses.Across all our business domains and worksites,we will advance greening through initiatives to reduce the negative impact on the environment,promote th

57、e transition to a circular economy,and build truly sustainable supply chains.The“Long-Term Vision on Climate Change”that we announced in March 2021 commits Marubeni to generating a positive impact contributing to efforts leading to a low-carbon and decarbonized society.Our“Green Strategy”not only ad

58、ds detail to how we will create this positive impact,but also outlines how we will promote sustainability initiatives by utilizing the Groups resources,as well as improving corporate value based on creating new value and offering solutions to societal issues.In terms of shareholder returns over the

59、three-year GC2024 period,we have set a new floor of 60 for the annual dividend per share.This is a promise to maintain stable dividends for the benefit of shareholders in a period of increasing uncertainty where we expect commodity prices and business conditions to be volatile.It is also one of our

60、ways to show commitment to the GC2024 financial targets.On top of the minimum dividend we have promised,we also aim to deliver higher dividends through growth in profits.In addition,we conducted a share buyback in the fiscal year ended March 31,2022.Enhanced profitability and a stronger financial fo

61、undation have helped us enter a new stage in terms of improvement in options for providing shareholder returns.GC2024 acts as a compass,showing us the direction the Marubeni Group should take.I am confident we will make substantial progress toward 2030 if the entire Group moves in one direction and

62、we can harness the power of every individual,no matter how modest their contributions might be.The times demand solutions for which we still have no role models or precedents.The Marubeni Group aspires to stand at the forefront in a world where the things we create all have the potential to provide

63、role models for the rest of society.As I stated earlier,the Marubeni Group led the way in 2018 in formulating business policies to target for decarbonization of coal-fired power generation business.Our judgment is we can turn the phasing out of coal from a threat into an opportunity.The power genera

64、tion business is one where we have always looked ahead to identify new growth areas and to transform Marubenis business model.A review of the history of the business shows how we have built our current position as a major global player by continuously transforming and growing our operations to provi

65、de customers with solutions that create new value.We moved from wholesaling power equipment in the 1960s to developing the EPC*1 business in the 1970s,followed by the IPP*2 business in the 1990s.This strategic transition to phase out coal is rooted in our corporate DNA.In the process of creating new

66、 value and of turning threats into opportunities,we seek to build innovative solutions in partnership with all our varied stakeholders.If we look at Asia,for example,while transitioning to clean energy is a major social challenge,the conditions are not yet right for all our customers to adopt renewa

67、ble energy.The monsoon season significantly complicates the adoption of solar power as a resource,and the deep seas make it difficult to build offshore wind farms.Nor is the financial capacity to tackle these issues unlimited.Hence,rather than unilaterally telling our customers we are exiting coal-f

68、ired power generation An advanced enterprise leading the way in making society sustainableMARUBENI CORPORATION INTEGRATED REPORT 20225business,we are thinking together about how we should move forward.For example,we need a framework for managing the energy transition to achieve lower carbon emission

69、s.We see one way to do this as advocating a push across Asia to substitute coal-fired power with LNG or to utilize ammonia or biomass in mixed-fuel thermal power plants.Our basic thinking is that,having signed a contract for a coal-fired power generation project,Marubeni has a responsibility to the

70、stakeholders to fulfill any management contract in full.We will consider to exit the contract early where partners understand the Marubeni Groups policy and can take over the operation.Even if we sell the ownership and Marubeni Groups GHG emissions improve,it would be irresponsible if the global GHG

71、 emissions dont change.In the long run,we cannot achieve real reductions in GHG emissions without discussing how best to move forward.In addition,while nations moving away from coal-fired power may reduce their GHG emissions,we cannot ignore the concerns of shortages in power supply to exacerbate th

72、e problem of the widening gap between the rich and poor in those countries.We see our mission as acting as a leader in providing support for transitioning to a low-carbon or decarbonized society,while emphasizing our responsibilities to local communities and other stakeholders.This will be an opport

73、unity for us to build new businesses.We are also strengthening our system of governance,which is the foundation of sustainability.From the fiscal year ending March 2023,we have become the first general trading company in Japan where outside directors make up a majority on the Board of Directors.This

74、 enhances the oversight function of the Board while ensuring there is sufficient pressure on the executive side.Going forward,we aim to reinforce our governance systems further by improving the transparency surrounding the operation of the Board of Directors and Corporate Management Committee.At the

75、 board meetings,we will remain focused on how best to enhance the corporate value of the Marubeni Group over the long term.*1.EPC(Engineering,Procurement&Construction).*2.IPP:Independent Power Producer.Human capital is the Marubeni Groups source of value.It is no exaggeration to say that the key to

76、our growth lies in how we draw out the best from our human capital.The“Marubeni HR Ecosystem”is our fundamental human capital strategy.It is an ecosystem where people with diverse backgrounds and high social value come together,energize,connect,and create new value.Within this ecosystem,our human ca

77、pital diversity is most important.Securing and leveraging the diversity of our human capital is essential to respond flexibly to environmental changes in an era of unpredictable and discontinuous changes.To put it another way,we see this as the foundation of our growth strategy.Within this diversity

78、,empowering our female employees is an area of particular focus.Diversity essentially creates new value and leads towards the right direction through the combination of different experiences and values,but it is not simply a matter of fostering diversity in terms of attributes such as gender.Yet,in

79、a society where the overall population ratio of men to women is generally equal,the predominance of male employees within Marubeni fosters a strong sense of homogeneity.Given our mission of closing gaps and anticipating how to solve societal issues,we are acutely aware of the issues surrounding whet

80、her a company with a male employee majority is best equipped to respond and thrive during such unpredictable times.Recognizing these issues,we decided in December 2020 that we would increase the ratio of female new graduates hired for career-track positions to around 4050%by the fiscal year ending M

81、arch 2025.From the fiscal year ending March 2023,we have introduced a set of policies to promote the empowerment of women in the workplace entitled“Female Empowerment at Work 2.0.”Besides ongoing initiatives to improve the working environment,we are focusing on expanding the talent pipeline and aimi

82、ng to involve female employees more deeply in corporate management and business decision making at Marubeni.Management is committed to a long-term HR strategy that aims to enhance career development opportunities for women and cultivate their career paths Human capital is the critical source of valu

83、e at MarubeniMARUBENI CORPORATION INTEGRATED REPORT 20226MARUBENI CORPORATION INTEGRATED REPORT 2022Message from the President&CEOtowards decision-making positions by creating and then broadening the talent pipeline.Creating an environment where diverse talent can fulfill their potential is also qui

84、te important.In the fiscal year ended March 31,2021,we introduced mission-oriented reforms to remodel our HR system completely so that it placed more value on“challenges”and a“frontline mindset.”In terms of challenges,we altered the framework to put less emphasis on past evaluations and more on sett

85、ing bold targets and taking on new challenges each year.In terms of the frontline mindset,we have focused on enabling frontline personnel to take responsibility for leading organizational and HR management,rather than having uniform rules across the Marubeni Group that restrict flexibility.Particula

86、r emphasis has been placed on encouraging our employees to embrace challenges.In response to the large impairment losses during the fiscal year ended March 31,2020,we have fostered a selective stance towards new investments that is not so restrictive as to impede ambition but also allows for a solid

87、 assessment of large mission challenges and its results.Even if failure occurs,we will be able to settle any losses and recover as a company.Besides such systems,I also place great value on the dialogue with our employees.Before the pandemic,we organized meetings where 4050 people could gather and h

88、ave the chance to speak directly management to create opportunities for dialogue.These meetings have continued online during the pandemic,and to date,I have engaged with around half of the entire Marubeni Group workforce in this way.Since opportunities for direct dialogue are inevitably limited,I ha

89、ve also worked on strengthening communication through the Opinion Box.This communication medium enables me to send video messages on important topics to Marubeni Group employees,who can then reply directly with questions and comments.In the roughly three years I have served as CEO since the fiscal y

90、ear ended 2020,I have corresponded through the Opinion Box about 40 times and have received many responding questions and comments from employees through this two-way communication system.This initiative is meaningful for helping Marubeni Group employees understand more about key management policies

91、 and messages and heightens their sense of participation within the company.At the same time,I have gained many insights from employees opinions.As a company,we refer to these opinions for improving upon and revising our policies:for example,in our efforts to promote the empowerment of female employ

92、ees,and when we were working out the best balance between office work and telecommuting post-pandemic.In order to deepen human capital management,senior management must become more involved in drawing out the strengths of their employees and promoting human capital strategies that align with our bus

93、iness strategies.To this end,we established the“Talent Management Committee,”a human capital strategy committee comprised of the CEO,CAO,and CSO as core executive members,in the fiscal year ended March 31,2022 to discuss various issues related to HR management.We continue to consider how best to man

94、age personnel assignments,workforce composition,training,and other aspects of our HR systems and policies,and implement reforms swiftly across the Marubeni Group.I believe we have made a good start to the fiscal year ending March 2023.I can sense the confident and a vibrant atmosphere present intern

95、ally,as well as the high expectations in Marubeni from outside the company.We must continue to work hard steadily over time to increase the trust of stakeholders,which can evaporate in an instant.At the same time,it is my strong conviction that we should never turn back.As dedicated professionals,we

96、 can face new challenges and create innovative solutions.When we all bring our best,we inspire each other to keep going until we reach our goals.This is Marubenis vision for the future.While Marubeni can only achieve so much,I believe we can tackle any issue by partnering with people and companies w

97、orldwide.Standing on a new stage,the Marubeni Group is focused on building corporate value over the medium and long term by seeking to address major societal issues in partnership with all stakeholders,whether individuals,companies or other entities.September 2022Standing on a new stage,pursuing the

98、 creation of longer-term corporate value in partnership with stakeholdersMasumi KakinokiPresident&CEOMARUBENI CORPORATION INTEGRATED REPORT 20227CONTENTSHistory of Value Creation 10Value Creation Story 12The Foundations for Value Creation/Fundamental Materiality 14Creating New Values with Stakeholde

99、rs 15Business Models 16Business Strategy Review(since FYE 3/2014)18Mid-Term Management Strategy GC2024 20Value Creation at MarubeniMARUBENI CORPORATION INTEGRATED REPORT 20228MARUBENI CORPORATION INTEGRATED REPORT 2022Value Creation at Marubeni1SectionMARUBENI CORPORATION INTEGRATED REPORT 20229Real

100、izing Value CreationBusiness Portfolio&StrategyCorporate DataValue Creation at Marubeni1981.31991.32001.32011.32021.3 2022.31858-1858 Marubenis founder,Chubei Itoh,began peddling Ohmi linen1872 Established Benchu,a drapery shop1921 Established Marubeni Shoten,Ltd.1980S-1978 U.S.:Grain collection and

101、 export business Columbia Grain established1987 U.S.:Acquired agri-input retailer Helena1994-Start of initiatives in IPP business1996 Qatar:First shipment from Qatar LNG project delivered1996 Chile:Acquired interest in Los Pelambres Copper Mine1997-Start of initiatives in renewable energy power gene

102、ration businessColumbia Grain(U.S.)Helena(U.S.)San Roque Hydroelectric Power Generation Project(Philippines)Los Pelambres Copper Mine(Chile)1950S-1949 Marubeni Co.,Ltd.was established1951 First overseas subsidiary established in New York1961 Non-textile sales exceeded 50%of total sales1963 Received

103、thermal power plant equipment order from Manila Electric Company in the Philippines1974 Received approval for establishing Marubeni Foundation,a social welfare corporationMarubenis first president,Shinobu Ichikawa,penned Our Company Creed,“Fairness,Innovation,and Harmony”New York subsidiaryManila El

104、ectric Companys generator No.1(Philippines)Deepening of businessExpansion of overseas business from trading to business investmentBecoming a general trading companyTransition from specialized trading companyexpansion of business domainsNet profit Collapse of bubble economy in Japan United Nations Fr

105、amework Convention on Climate Change(UNFCCC)Company CreedFoundedTextile businessThe Marubeni Group has consistently supported the development of society and the economy through business development in tune with the latest needs,while anticipating societal change.We will create new value by providing

106、 solutions to the issues faced by society and our customers.History of Value CreationMarubenis founderChubei ItohMark from which Marubeni company name was derivedFairness,Innovation,and HarmonyMARUBENI CORPORATION INTEGRATED REPORT 202210MARUBENI CORPORATION INTEGRATED REPORT 2022Value Creation at M

107、arubeni1981.31991.32001.32011.32021.3 2022.32000S-2001 Japan:Marubeni-Itochu Steel Inc.established2005 Indonesia:MUSI Pulp Project management interests acquired2008 Chile:Acquired interest in Esperanza Copper Mine2011 U.S.:Invested in Westlake(now Nowlake),a used car sales and financing company2012

108、Acquired equity stake in Roy Hill Iron Ore Project in Australia2013 U.S.:Invested in Aircastle,an aircraft leasing company2013 U.S.:Acquired Gavilon,a grain and fertilizer wholesalerGavilon(U.S.)Nowlake(U.S.)Roy Hill iron mine(Australia)MUSI Pulp Project(Indonesia)Resource investmentSecuring of natu

109、ral resource interests that led to current green strategyNon-resource investmentDevelopment of diverse businesses to enhance resiliencePursuit of higher corporate value by 2030 by staying one step ahead of changes in the environment and societyPresent-2017 Established the Marubeni Group Governance P

110、olicy2018 Established Sustainability Promotion Committee2018 Disclosed policy to pull out of coal-fired power generation2019 Identified materiality2019 Adopted TCFD recommendations2019 Created Business Policies SPP*12020 Net loss booked on large impairment losses(FYE 3/2020)Eliminated concerns about

111、 future large impairment losses2021 Disclosed Long-Term Vision on Climate Change*22022 Achieved record-high profits (FYE 3/2022)2022 Disclosed Green Strategy*32017 U.S.:Acquired Creekstone,a beef processor2019 Next Generation Business Development Division established2020 U.S.:Additional acquisition

112、of equity interests in Aircastle,an aircraft leasing company2022 Next Generation Corporate Development Division established2022 U.S.:Decided to sell Gavilons grain business*1.Refer to P.17 for details.*2.Refer to P.46 for details.*3.Refer to P.47 for details.Net profit:424.3 billion Shareholders equ

113、ity:2.2 trillion Number of employees:4,379(parent)/46,100(consolidated)ROE:23.0%FYE 3/2022 Economic growth in emerging countries and rise in resource prices Collapse of IT bubble Kyoto Protocol Paris Agreement 2008 financial crisis COVID-19 pandemic Japanese governments declaration of carbon neutral

114、ity by 2050Creekstone(U.S.)Aircastle(U.S.)Liquefied hydrogen carrier(Australia)(photo courtesy of Kawasaki Heavy Industries,Ltd.)Management PhilosophyIn accordance with the spirit grounded in the Company Creed,“Fairness,Innovation and Harmony,”the Marubeni Group is proudly committed to social and ec

115、onomic development and safeguarding the global environment by conducting fair and upright corporate activities.MARUBENI CORPORATION INTEGRATED REPORT 202211Realizing Value CreationBusiness Portfolio&StrategyCorporate DataValue Creation at MarubeniBusiness EnvironmentCreating New Value with Stakehold

116、ersEnvironmental&Social MaterialityConcurrent Opportunities and ThreatsGlobal Changes and Major Trends Pandemic Digitalization Financial normalization Geopolitical risks Demands for ESG managementDrivers of value creationThe Foundations for Value CreationFundamental MaterialityHuman Capital with Hig

117、h Social ValueClimate ChangeSustainable ForestryHuman Rights&Co-development with CommunitiesSustainable&Resilient Value ChainsCustomers and business partnersShareholders and investorsEmployeesLocal communitiesNational/local governmentsFuture generationsCompany CreedGovernance for Coexistence with So

118、cietyRobust Management FoundationStrengthening existing businessesCreation of new business modelsAsset upgrades/recyclingContinuous investment for growthRefer to PP.50-59.Refer to P.14.Value Creation StoryFairness,Innovation,and HarmonyMARUBENI CORPORATION INTEGRATED REPORT 202212MARUBENI CORPORATIO

119、N INTEGRATED REPORT 2022Value Creation at MarubeniBase strengthenedCreation of ValueEconomic ValueSince its establishment,the Marubeni Group has created a solid foundation for the creation of value,and the Company Creed of“Fairness,Innovation,and Harmony”that offers a great guide.Todays world is und

120、ergoing major disruptive changes that challenge preconceived notions,as seen in shifting values and the rapid advance of digital transformation.For the Marubeni Group this brings opportunities as well as threats.In such an unpredictable business environment,the Group maintains dialogue with stakehol

121、ders to understand better the societal issues we face and our related capabilities and expectations.In response,we are focused on strengthening our existing businesses;creating new business models;and upgrading and recycling assets.Providing solutions for society and customers creates environmental

122、and social value,which in turn allows us to capture economic value.We aim to provide a platform for value creation beyond the traditional trading company,based on co-creation with various people from inside and outside the Group and around the world.At the same time,we are focused on realizing our b

123、usiness philosophy to contribute to economic and social development while safeguarding the global environment.Environmental and Social ValueValue creation company Value creation company going beyond the boundaries going beyond the boundaries of the current of the current Sogo ShoshaSogo ShoshaRealiz

124、ing 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“Fairness,Innovation,and Harmony,”the Marubeni Group is proudly committed to Marubeni Group is proudly committe

125、d to social social and economic development and safeguarding and economic development and safeguarding the global environmentthe global environment by conducting fair and by conducting fair and upright corporate activities.upright corporate activities.12MARUBENI CORPORATION INTEGRATED REPORT 202213R

126、ealizing Value CreationBusiness Portfolio&StrategyCorporate DataValue Creation at MarubeniCorporate DataThe Marubeni Group has identified three categories of fundamental materiality as its most vital fundamental issues for putting value creation into practice.Reflecting the fundamental materiality i

127、n our business activities,we aim to bolster sustainable growth in corporate value while innovating and advancing solutions to social issues.Human Capital with High Social ValueRobust Management FoundationGovernance for Coexistence with SocietyMeasures to Improve Brand Value Improvement in brand valu

128、e Having superior brand value leads to greater business opportunities,increases our ability to hire personnel,and improves loyalty among employees.Marubeni views brand value as a key element of its management foundation,and intends to enhance brand value in a way that improves corporate value over t

129、he long term.Example of measures to improve brand valueIn 2022,Marubeni launched a new corporate ad series featuring the animated TV show ONE PIECE,one of Japans most beloved adventure stories.The world of ONE PIECE is home to a crew of friends who each contribute their own particular strengths to t

130、heir grand questto find the mysterious“One Piece”treasure that connects them all.The new ad series connects this world with Marubenis vision for the future,the Global crossvalue platform.By introducing Marubenis many businesses through the ONE PIECE worldview in this ad series,we will gain more unde

131、rstanding and support for our business and our approach as a company,which will lead to the growth of our brand value in the mid-to long-term.Under the slogan together,we can go further,Marubeni will work in tandem with our stakeholders to deliver solutions and create new values that make the world

132、a better place.O/S F THuman Capital with High Social ValueThe Marubeni Group regards human resources as its most valuable asset in meeting environmental and social demand,and proactively providing solutions.We define“Human Capital with High Social Value”as individuals who are essential not only to t

133、he company but also to society.We will nurture human capital with High Social Value,and thereby bring about innovation and provide solutions.Individuals who observe laws and act in conformity with accepted international customs,and who also maintain high ethical standards for the good of society Inn

134、ovative individuals with the foresight,insight and creativity needed to anticipate social change,also with sound judgment and the ability to make correct decisions and act quickly Individuals with the communication skills to truly address the demands of society,with a sense of purpose and responsibi

135、lity,while also being attuned to the realities of the marketplace.These attributes are the foundation of decision-making,decisiveness and the ability to executeReinforcement MeasuresRobust Management FoundationThe Marubeni Group has identified Robust Management Foundation as the second category of F

136、undamental Materiality,as it believes it is necessary both for maximizing the potential of its human capital and for maximizing corporate value.We must build a foundation that facilitates the activities of our human capital and establish a truly Robust Management Foundation.If we cannot accomplish t

137、his,our human capital will not be able to continue innovating and providing solutions.Enabling our human resources to use our management foundation to the fullest will ultimately lead to maximizing corporate value.A fundamentally sound management foundation with a strong brand presence,reputation,sa

138、les foundation and network,and financial footing A corporate climate and culture that is capable of producing abundant Human Capital with High Social Value,and can enable that human capital to engage in meaningful work An environment that places importance on the ability to create diverse values and

139、 generate quality solutions within a diverse and inclusive organization Relationships based on trust with customers,local communities and partners Global environment and natural resources,the basis of our businessesReinforcement MeasuresGovernance for Coexistence with SocietyThe Marubeni Group will

140、endeavor to increase corporate value based on a Robust Management Foundation in which Human Capital with High Social Value develops innovative ideas and continues providing solutions.Within that framework,and given social expectations and demands,we believe that strengthening our corporate governanc

141、e system for improved coexistence with society is important to all of its stakeholders.Corporate Governance Relationships based on trust with customers,local communities and partnersReinforcement MeasuresSee PP.38-43 for details about the HR Strategy.See PP.26-29 for details about financial strategy

142、(Message from the CFO).See PP.38-43 for details about the HR Strategy.See the column below for details about the brand strategySee PP.68-79 for details about corporate governance.See PP.44-59 for details about sustainability.Reference:See P.15 for details about co-creation with stakeholders.The Foun

143、dations for Value Creation/Fundamental MaterialityMARUBENI CORPORATION INTEGRATED REPORT 202214MARUBENI CORPORATION INTEGRATED REPORT 2022Value Creation at MarubeniCreating New Values with StakeholdersThrough dialogues and other engagement,the Marubeni Group gains an accurate understanding of the ex

144、pectations and demands of diverse stakeholders.By collaborating with them,we aim to fulfill our management philosophy and contribute to the achievement of SDGs through initiatives in environmental and social materiality.Shareholders and investorsEmployeesCustomers and business partnersNational and l

145、ocal governmentsFuture generationsLocal communitiesStakeholdersRelationshipsMeans of engagementShared issues and objectivesExamples of co-creationInitiatives for the SDGsCustomers and business partnersThe global corporate activities of the Marubeni Group are supported by collaboration with customers

146、 and business partners.The Marubeni Group aims to increase value in its supply chains by building relationships of mutual trust with its suppliers and partners to develop and provide products and services that are meaningful to society,while paying due attention to safety,respecting human rights and

147、 protecting the environment.Daily activities in sales and procurement Supply chain sustainability survey Website inquiry and contact page Address needs of final customers Strengthen partnerships Provide solutions to social issues Build better supply chains,fair trade Build sustainable supply chains

148、Business initiatives to jointly deploy strengths with partners Improve management systems through collaboration with suppliers Procure products certified as sustainable9121317Shareholders and investorsShareholders and investors support the growth of the Marubeni Group by providing financial capital.

149、The Marubeni Group builds relationships based on trust with shareholders and investors through fair and highly transparent information disclosure and dialogue.We aim to meet the expectations of shareholders and investors by improving our corporate value.General meeting of shareholders IR meetings an

150、d briefings IR tools(integrated reports,shareholder reports,etc.)Information disseminated on official website Timely and fair information disclosure,maintain transparency of management Acquire proper valuation from capital markets,improve corporate value Distribution of shareholder returns Understan

151、d perspectives of shareholders and investors,reflect them in management Respond to socially responsible investing Strengthen ESG initiatives and disclosures Introduced a stock-based compensation system(see P.78 for details)for inside directors,further sharing value to enhance corporate value891317Em

152、ployeesThe Marubeni Group believes that human capital is its most valuable asset.We respect the value systems and life designs of each and every employee.The Group has created work environments that allow everyone to work in comfort without any kind of discrimination.Our focus is to create work envi

153、ronments that train,invigorate and bring together human capital with high social value that is needed by society and our customers,while creating new value and leveraging the diversity of each person.Employee engagement survey Dialogues between CEO and employees(opinion box)Advisory hotline Dialogue

154、s between employees and management Workplaces that motivate everyone to work in a comfortable environment Places for self-realization,work-life balance Appropriate performance evaluations and compensation Sustained growth of Marubeni Group Train next generation human resources Mission-oriented HR sy

155、stem(see P.40 for details)Number of commercialized businesses as a result of business contests:Four out of more than 400 applications(see P.43 for details)Introduce digital talent certification system,launch Digi-Challenge(see P.36 for details)Increase in affirmative answers on engagement survey(see

156、 P.41 for details)5891213Local communitiesThe Marubeni Groups global business development requires a mutual understanding with local communities and NGOs.The Marubeni Group aims to become a valued member of the local communities where we conduct businesses,and to contribute to the creation of robust

157、 local communities through improvement of living standards of local people,creation of local jobs,and developing local industry.Contribute to local communities through business activities Collaborate and engage with local communities,NGOs and NPOs Promote social welfare aid business through the Maru

158、beni Foundation Coexist with local communities and grow sustainably Comply with laws and regulations Reduce environmental load Listen to voice of regional society Create jobs in roughly 80 countries and regions,coexist with regional society Build sustainable and robust supply chains78111317National

159、and local governmentsThe Marubeni Group intends to contribute to the development of countries and regions by creating businesses while tackling social issues through collaboration with national and local governments,while complying with the laws and regulations of local governments and government en

160、tities around the world.Management dialogue with governments Activities in the financial community Personnel exchanges Comply with laws and regulations of national and local governments Joint efforts to solve social issues,contribute through business activities Joint projects with multiple governmen

161、t entities in the infrastructure field Examine ways to lower carbon footprint in Asia79111317Future generationsAs a member of society,it is the Marubeni Groups responsibility to pass along to future generations a safe and abundant society that protects the global environment.We believe in contributi

162、ng to the creation of an abundant future through educational support and aid for the next generation of human capital,while taking direct steps to combat climate change.Scholarship fund in emerging countries Climate change scenario analysis Participation in TCFD disclosure and various other initiati

163、ves Initiatives to protect the global environment and address climate change Biodiversity Response to climate change Build a sustainable supply chain7911131415Related Sustainable Development Goals(SDGs)of the United Nations14MARUBENI CORPORATION INTEGRATED REPORT 202215Realizing Value CreationBusine

164、ss Portfolio&StrategyCorporate DataValue Creation at MarubeniStrengthening existing businessesCreation of new business modelsAsset upgrades/recyclingContinuous investment for growthThe driving force behind value creation by the Marubeni Group is the coupling of efforts to strengthen existing busines

165、ses and to create new business models,while also continuously upgrading and recycling assets.In all these processes,we ensure management is in line with the Business Policies SPP,which describes the basic concept shared by all Group operations,and with the Group Governance Policy,which aims to stren

166、gthen governance across the Group.Sustained growth is a product of daily business activities,based on the functional capabilities that Marubeni has developed as a sogo shosha and the use across many different businesses of the information gathered at work sites spanning multiple industry sectors,mar

167、kets,and regions.Drivers of Value CreationFunctionsStrengths of Marubeni GroupComprehensive strengthsBusiness Policies SPP*2Marubeni Group Business Management PoliciesGroup Governance Policy*2MarketingDistribution/FinanceNetwork ConstructionStable Product SupplyBusiness Development/ManagementProject

168、 ManagementRisk ManagementInformation Analysis/UsageTradingSector breadthBusiness investmentWorldwide regional developmentMaximizing the value of portfolio businessesBetter management of operating companies*2.For details,please see P.17.Aim:Develop and establish a stable earnings base by strengtheni

169、ng current business domains and exploring new business models.GC2024 period:reinforce earnings base by prioritizing investmentsin existing domains where Marubeni has a competitive advantage and high profitability(Horizon 1&2).In addition,invest in new domains to develop core businesses for the futur

170、e(Horizon 3),based on rigorous target selection.*1.For details,please refer to Business Investment Process on PP.32-33.Enhance Corporate ValueHorizon 1Improvement of existing businessesHorizon 2Pursuit of strategies in existing business domainsHorizon 3New business models and unapproached business d

171、omainsDigital Transformation(DX)Business ModelsEnhancing corporate value using a multi-layered approach to growthMonitoring of new investments,Use of PDCA cycles*1 to improve profitabilityMARUBENI CORPORATION INTEGRATED REPORT 202216MARUBENI CORPORATION INTEGRATED REPORT 2022Value Creation at Marube

172、niMaximizing the value of portfolio businesses Strategically selecting new investments Strengthening existing businesses Expediting divestment and reallocating assetsBusiness Policies SPPStrategyPrimePlatformBusiness PoliciesBusiness Policies SPP and Marubeni Group Governance PolicyStrategyStrategy

173、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”).PrimePrime policies involve taking the initia

174、tive 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 commi

175、tment in the form of our Prime policy,which means proactively formulating and executing with the aim of increasing the value of our businesses.Rather than limit investments to projects in which we hold a majority stake,in the case of large deals,we also seek to accumulate corporate value by teaming

176、up with like-minded business partners based on mutually complementary strategies.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 expansion as platforms.We will pur

177、sue 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 as platforms to create new value by synergistically combining a wide variety of internal and external expertise.PlatformUn

178、der GC2024,we continue to use a trio of business policies we call SPP(Strategy Prime Platform)as the common set of basic principles applied to every Marubeni Group business model.Based on the Business Policies SPP,we will work to maximize the value of the Marubeni Groups overall portfolio businesses

179、 by selectively making new investments;by strengthening our existing businesses through business monitoring;and by expediting divestment and reallocating assets.Business Policies SPPThe overall growth of the Marubeni Group is linked to that of the businesses conducted by the large number of companie

180、s in the Group.To enable each Group company to pursue growth independently,Marubeni oversees the business management of every Group company as 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

181、help maximize corporate value.To ensure this system,the Marubeni Group Governance Policy was established on April 1,2017,with the following Group-wide aims:(i)to share and disseminate Marubeni Group management policies(ii)to build and strengthen Group governance by clarifying the roles and responsib

182、ilities of the Corporation(as shareholder/business owner)and Group companies(iii)to maintain and plan the codification of necessary systems,policies,and rules From a solid foundation of group governance,we aim to maximize the corporate value of the Marubeni Group through individual Group companies w

183、orking to achieve goals with a sense of urgency.Marubeni Group Governance PolicyGroup companiesRole:Execution of management of individual businessesMarubeniRole:Development of Group management policy and basic strategy;supervision of the management of Group CompaniesConstructive dialogueManagement t

184、ransparency*See Putting Business Policies SPP into Practice on PP.30-31 for details on specific initiatives.MARUBENI CORPORATION INTEGRATED REPORT 202217Realizing Value CreationBusiness Portfolio&StrategyCorporate DataValue Creation at MarubeniBusiness Strategy Review(since FYE 3/2014)GC2018Basic Po

185、licies Cash flow management Portfolio policy(Setting targets for total assets and Net Profit for each business model)Reinforcement of global strategy Recruitment/development of global human resources,promotion of diversity and inclusionOutcomes Following recent impairment losses,shift in mindset fro

186、m“investment-focused”to“strategy-focused.”Focus on high-priority issue of reinforcing financial foundation,achieving improvement in net debt-equity ratio(DER)to 0.9x.New investments of about 290 billion in addition to asset recycling from total divestments of about 640 billion.Sustainability Managem

187、ent Committee set up in 2018 to report to CEO and oversee initiatives to promote sustainability.Issues To achieve long-term corporate value growth amid major global changes.Major Investments Creekstone Farms:production,processing and sale of beef,etc.(U.S.)Power generation:IPP projects overseas and

188、in Japan Saide Tekstil:planning,manufacture and sale of apparel,etc.(Turkey)Business Environment Structural global economic shifts(slower growth in developing economies,renewed economic importance of advanced countries)Global Challenge 2018 The Road to 2020Released in February 2016GC2015Global Chall

189、enge 2015Released in May 2013Basic Policies Optimize management resources Strengthen and expand overseas business Further Top-Management-Led HR strategyMajor Investments Gavilon:collection/sale of grains/fertilizer,etc.(U.S.)Roy Hill:purchase of iron ore mining interest(Australia)Oil/gas E&P:explora

190、tion,development,production and sale in Gulf of Mexico(U.S.)and North Sea(U.K.)Business Environment Low commodity prices Slower growth in ChinaOutcomes Total new investment over three years of around 1,400 billion to strengthen and expand overseas operations,notably via the Gavilon acquisition.Issue

191、s One time losses totaling around 230 billion booked in fiscal years ended March 2015 and March 2016 across resource businesses(due to deterioration in commodity prices)and non-resource businesses such as U.S.grains and overseas plant operations.Need to strengthen financial foundation,upgrade cash f

192、low management and improve investment discipline.Consolidated net profit/Net DER(Billions of yen)Consolidated net profit Net DER(Times)150300450-20002014.32015.32016.32017.32018.32019.32020.32021.32022.30121.63210.9105.662.3155.4211.3230.9-197.5223.3424.31.721.951.201.040.901.160.880.80GC2015GC2018G

193、C2021MARUBENI CORPORATION INTEGRATED REPORT 202218MARUBENI CORPORATION INTEGRATED REPORT 2022Value Creation at Marubeni12302014.32015.32016.32017.32018.32019.32020.32021.32022.316.77.34.411.114.013.9-13.415.523.0081624-16GC2015GC2018GC20211.21.21.01.21.30.91.31.62.5The large impairment losses record

194、ed in earlier years had been a drag on earnings and efforts to rebuild the financial base.However,the impairment losses booked in the fiscal year ended March 2020,the first year of GC2021,significantly reduced concerns of having large write-downs in the future.The subsequent major gains in profit du

195、e to the restored earnings capacity resulted in Marubeni achieving the financial rebuilding targets by the end of March 2022.GC2021 was positioned as “Three Years of Transformation”to help ensure better targeted investments and to solidify the earnings base.Market capitalization/ROE(year-end)(Trilli

196、ons of yen)(%)Market capitalization (year-end)ROEPriorities Rebuild and Strengthen Our Financial Foundation Enhancement of Business Strategies(strengthen existing businesses and sow seeds in new business areas)Business Policies(SPP)Practicing Sustainability and Further Enhancement of Corporate Gover

197、nance HR Development/Use to Support Creation of New Value Business Environment COVID-19 pandemic Higher commodity prices caused by ultra-easy monetary policy worldwide Growing awareness of sustainabilityMajor Investments Aircastle(additional investment):aircraft operating leases(U.S.)Agri-input busi

198、ness(growth investment):acquisition by Helena(U.S.)and Adubos Real(Brazil)Santher:manufacture/sale of hygiene products(Brazil)Chenya Energy:development/operation of solar power generation business(Taiwan)Kraft of Asia Paperboard&Packaging:manufacture/sale of containerboard packaging materials(Vietna

199、m)Iguacu Vietnam:manufacture/sale of instant coffee(Vietnam)Basic PoliciesLong-Term Management Direction(toward 2030)Our Vision:Global crossvalue platform Value creation company going beyond the boundaries of the current Sogo ShoshaPursue growth engines and create new business models by proactively

200、addressing the challenges of customers and society through vertical evolution and horizontal expansionBasic Policy of Management StrategyCorporate Value Enhancement toward 2030 Strong financial foundation for growth Sustained growth by strengthening existing business Explosive growth by creating new

201、 business models looking 10 years ahead in the futureOutcomes Re-evaluated the value of the assets in fiscal year ended March 2020.As a result,the impairment loss of about 422 billion was booked,which reduced the risk of future impairment loss significantly.Record consolidated net profit of 424.3 bi

202、llion posted in fiscal year ended March 2022,reflecting a stable earnings base and higher commodity prices;core operating cash flow of 570 billion.Financial foundation rebuilding targets achieved,enhancing flexibility in capital allocation for future growth(improvement in net DER to 0.8x as of March

203、 31,2022).Decision taken to divest Gavilon grain business.First share buyback conducted by Marubeni Group.Marubeni announces long-term vision on climate change(see P.46 for details);all upstream oil/gas assets in North Sea(U.K.)divested in line with this vision.Issues Maintain/reinforce financial ba

204、se;work to strengthen existing businesses further and pursue new business models.GC2024GC2021Global crossvalue platform Three Years of Transformation to Build a Stronger FoundationReleased in May 2019MARUBENI CORPORATION INTEGRATED REPORT 202219Realizing Value CreationBusiness Portfolio&StrategyCorp

205、orate DataValue Creation at MarubeniPutting Strategy into PracticeIn February 2022,the Marubeni Group released the Mid-Term Management Strategy GC2024 for the three-year period to March 2025.Building on the reinforced business foundation laid during GC2021,GC2024 is positioned as“Three Years of Putt

206、ing Strategy into Practice.”GC2024April 2022 March 2025April 2022 March 2025Released February 2022Released February 2022Basic PoliciesMid-Term Management Strategy GC2024Business EnvironmentCharacteristics of business environment Discontinuous changes and disruptions of existing business models will

207、only accelerate Awareness of uncertainties in the post-COVID 19 era is crucial1 Develop and establish a stable earnings base by strengthening current business domains and exploring new business modelsReinforce/build Marubeni Group strengths in existing businesses(Horizon 1&2)while also creating new

208、business models(Horizon 3)in domains with high growth 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 SpaceTak

209、ing advantage of the 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.2 Lead the transition to a

210、 Green economy by expanding“Green Business”and“Greening”in all business domainsStrengthen/expand current Green Business while creating new Green Business through cross-sectional approaches and utilization of business connectionsPromote“Greening”initiatives across all other Marubeni Group business do

211、mains to reduce environmental impact,support the transition to a circular economy,and build sustainable supply chains All domainsGreen Business Reducing negative impacts on the environment and contributing to the transition to a circular economy Building sustainable supply chains through cooperation

212、 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.)Expanding Green Business based on the current business,which i

213、s already strong and profitableCreating new Green Business through cross-sectional approaches and utilization of business connectionsHorizon 1&2Horizon 3Renewable EnergyForestryAgri-InputsNew energyDecarbonization SolutionsEco-friendly Food productsDecentralized power,Battery Storage,and Supply-Dema

214、nd AdjustmentsRecycling of materials and ResourcesCopper AluminumWater InfrastructureDecarbonizationCircular EconomyWater ResourcesBio-DiversityGreen Strategy PP.47-49MARUBENI CORPORATION INTEGRATED REPORT 202220MARUBENI CORPORATION INTEGRATED REPORT 2022Value Creation at MarubeniBusiness Policies/I

215、mproving ProfitabilityBusiness Policies SPP Maintain Business Policies with the aim of maximizing business portfolio valueImproving Profitability Implementing ROIC/CROIC/RORA to monitor capital efficiency and risk/return ratioMarubeni Group HR StrategyFinancial Targets“Marubeni HR Ecosystem”Promotin

216、g the growth and success of the Marubeni Groups human capital,the critical source of our corporate valueMarubeni HR EcosystemHuman Capital with High Social Value Human capital that creates new value Highly regarded and essential to society and our customersDiversity&Inclusion Leveraging diverse valu

217、es Increasing value creation capabilities utilizing the strength of diverse individualsCulture of Active Participation and Connectivity Creating environments and workstyles for invigorating human capital Open innovation to bring together internal and external ideas Mission-oriented HR SystemMerit-ba

218、sed and encourages a challenge mindset Developing and Empowering Diversified Human CapitalOptimization of the working environment and strengthening HR development Talent Management CommitteePromotion of HR strategy lead by core members of the executive team(CEO,CAO,CSO)Consolidated net profit(FYE 3/

219、2025)400.0 billionCore operating CF(Three-year cumulative)1,300.0 billionPursuing long-term growth of corporate value Sustain and improve:Cash generation ROE Cost of equityROE15%Net DE ratio of around 0.70.8 timesUnder GC2024,Marubenis aim is to build corporate value by seeking to create new value c

220、ontinuously by addressing societal and customer issues that lie hidden in gaps.To this end,we have formulated two basic policies to underpin our ongoing efforts to enhance corporate value over the medium and long term heading towards 2030.Business Policies SPP P.17Improving Profitability PP.26-29Mar

221、ubeni Group HR Strategy PP.38-43Working to pursuing long-term growth of Corporate Value:see P.23MARUBENI CORPORATION INTEGRATED REPORT 202221Realizing Value CreationBusiness Portfolio&StrategyCorporate DataValue Creation at MarubeniCapital Allocation PolicyShareholder Returns PolicyDividends Aim to

222、increase dividends through profit growth,while maintaining a consolidated dividend payout ratio of 25%or more of consolidated net profit 60 per share to be set as the minimum annual dividend through the GC2024 periodShare Buybacks Flexible share buybacks to be carried out,targeting improved capital

223、efficiency and performance per share,etc.The timing and amount of buybacks to be determined considering the overall business environmentWhile working to strengthen and enhance our financial foundation,the focus will be onGrowth and Shareholder Returns Maximizing Core operating CF Maintaining positiv

224、e FCF after shareholder distributions(Three-year cumulative FCF,excluding effects from changes in working capital)*1.Not including funds to be collected from the sale of Gavilons grain business.*2.The sale of Gavilons grain business is expected to be completed in the fiscal year ending March 2023.Th

225、e funds to be collected(300.0400.0 billion)will be used for debt repayment in consideration of the current investment environment.For the three-year period of GC2024,the collected funds are recognized as free-cash and will be allocated to new investments,share buybacks or retained for future investm

226、ent,etc.Horizon 3Horizon 2Horizon 1Divestment200.0 billionCore operating CF1,300.0 billionNew investments,CAPEX1,000.0 billionShareholder DistributionsFree cashAppropriate Cash AllocationMaximize Core operating CFAllocated to new investments,share buybacks or retained for future investment,etc.100.0

227、200.0 billion Investing in core businesses of the future.Targets to be rigorously selected800.0900.0 billion Enhancing the earnings base by selectively investing in areas with high profitability based on the companys competitive advantagesFinancial Discipline:Net DE ratio target of around 0.70.8 tim

228、esSet a dividend payment floor over the next three yearsFlexible share buybacks to be carried outMid-Term Management Strategy GC2024MARUBENI CORPORATION INTEGRATED REPORT 202222MARUBENI CORPORATION INTEGRATED REPORT 2022Value Creation at MarubeniThe Marubeni Group aims to maximize corporate value by

229、 simultaneously pursuing economic value and environmental and social value.To meet this challenge,the Group has launched initiatives that contribute to sustain and improving cash generation,ROE and cost of equity,and is pushing ahead with reforms to these ends.Working to pursuing long-term growth of

230、 corporate valueSpecific Measures Financial strategy Credit rating upgrades Stronger investment discipline Green Strategy Risk management HR strategy Sustainability Respect for human rights Enhanced corporate governanceReduce cost of equityThe Marubeni Group is not only optimizing its financial leve

231、rage,but also making efforts to smooth out fluctuations in business performance,including rigorously disciplined and more targeted investment.We are also working to reduce the cost of equity to enhance corporate value over the medium to long term through non-financial measures,such as sustainability

232、 initiatives including corporate governance and climate change measures.Optimization of financial leverage(Net DE ratio)Minimization of performance volatilityImprovement of non-financial performance through stronger actions for sustainabilitySpecific Measures Reinforce existing businesses/growth inv

233、estments Creation of new business models Green Strategy Stronger investment discipline DX StrategySustain and improve ROEThe Marubeni Group aims to sustain and improve ROE to maximize corporate value.To accomplish this goal,we will work to sustainably generate and expand net profit and core operatin

234、g cash flow through business strategies that are conscious of capital efficiency.Our approach involves establishing a solid presence in new business areas that we identify the potential for strong future growth,in addition to further reinforcing and raising the level of existing businesses where we

235、already have competitive strengths.Continued increase in net profit,core operating cash flow,strategic capital allocationEstablishment of strong earnings base through enhancement of business strategies while monitoring capital efficiencySustain and improve cash generationMARUBENI CORPORATION INTEGRA

236、TED REPORT 202223Realizing Value CreationBusiness Portfolio&StrategyCorporate DataValue Creation at MarubeniCONTENTSMessage from the CFO 26Putting Business Policies SPP into Practice 30Business Investment Process 32Message from the CDIO 34DX Strategy of Marubeni Group 34Upgrading Promotion of Next G

237、eneration Initiatives 37Message from the CAO 38GC2024 Marubeni Group HR Strategy“Marubeni HR Ecosystem”39Message from the CSDO 44Sustainability for the Marubeni Group 45Initiatives to Improve Corporate Value 46Environmental and Social Materiality 50Risk Management 60Response to Business Risks 62Roun

238、dtable Discussion with Outside Directors 64Corporate Governance 68Corporate Management 80Realizing Value CreationMARUBENI CORPORATION INTEGRATED REPORT 202224MARUBENI CORPORATION INTEGRATED REPORT 2022Realizing Value Creation2SectionMARUBENI CORPORATION INTEGRATED REPORT 202225Business Portfolio&Str

239、ategyCorporate DataValue Creation at MarubeniRealizing Value CreationBusiness Portfolio&StrategyCorporate DataMessage from the CFOOptimizing the strategic allocation of capital to pursue corporate value growthResults of Mid-term Management Plan GC2021(Three Years of Transformation to Build a Stronge

240、r Foundation)For the fiscal year ended March 31,2022,the final year of GC2021,we reported consolidated net profit of 424.3 billion a new record that significantly exceeded the plan target of 300 billion as well as the previous record.Total core operating cash flow for the three-year period,which we

241、use as a metric for our earnings base,was+1,303.9 billion.This demonstrated our success in focusing on cash generation.This was a result of being able to capture higher commodity prices,along with improved operating conditions in key sectors such as agriculture and consumer products,on top of our al

242、ready solid earnings base.Yet having a business foundation that can benefit from such tailwinds is one of the strengths of the Marubeni Group.The loss of 422.0 billion that we reported in the fiscal year ended March 31,2020,the first year of GC2021,included major impairment losses.Since then,we have

243、 channeled the resources of the Marubeni Group to focus on restoring trust and rebuilding our financial foundation.As of the end of March 2022,our net debt-to-equity ratio was down to around 0.8x and shareholders equity had recovered to more than 2,000 billion.By such measures,our financial foundati

244、ons are the strongest they have ever been.Our success in reinforcing our earnings base and financial foundation in a well-balanced way has been recognized in the form of one-notch upgrades to our credit rating since April 2022 from three major Japanese and overseas credit rating agencies(S&P,R&I,and

245、 JCR).In addition,we expect to make a further improvement to our financial foundation with the completion of the sale of the grains business of Gavilon Agriculture Investment,Inc.during the fiscal year ending March 2023.I see huge value in our successful major financial rebuilding efforts.The busine

246、ss environment faced by the Marubeni Group at present is affected by innumerable risk factors.To list the most serious issues,there are the problems created by the Russia-Ukraine situation;fragmentation of the global economy and social order;and monetary tightening in the U.S.and other advanced nati

247、ons.Geopolitical and other risks potentially threaten global flows of people,goods and capital,which in turn could restrict the procurement of funds.Our ability to maintain solid funding capability translates to enhanced management stability and flexibility.Moreover,a robust financial foundation not

248、 only helps us to secure capital reliably and at a lower cost,but is also a Takayuki Furuya Managing Executive Officer,Member of the BoardCFO;Chief Operating Officer,Investor Relations and Credit Ratings;Chairman of Investment and Credit Committee;Chief Sustainable Development Officer(CSDO);Chairman

249、 of Disclosure CommitteeMARUBENI CORPORATION INTEGRATED REPORT 202226MARUBENI CORPORATION INTEGRATED REPORT 2022Realizing Value CreationFinancial targets achieved by capturing higher commodity prices,on top of solid earningsCredit rating actions since April 2022 by three major agenciesFinancial Targ

250、etsGC2021 result (3Y total for April 2019 March 2022)Consolidated net profit(FYE 3/2022)300.0 billion(FYE 3/2022)424.3 billionCFCore operatingcash flow(3Y cumulative)1,200.0 billion1,303.9 billionFCF after shareholder distributions(3Y cumulative)+100.0 billion or more+419.2 billionNet DE ratioAround

251、 0.7x *Revised to around 1.0 in the “GC2021 Revision”0.80 xNew investment incl.CAPEX(3Y total)Approx.900.0 billion Horizon 1:200.0 billionHorizon 2:500.0 billionHorizon 3:200.0 billionApprox.740.0 billion Horizon 1:approx.300.0 billionHorizon 2:approx.390.0 billionHorizon 3:approx.50.0 billionROE10%

252、or more23.0%JCRR&IS&PMoodysAAAa2AA-UpgradeAa3A+UpgradeA1AA2A-A3BBB+UpgradeBaa1BBBBaa2BBB-Baa3source of competitive advantage in our business activities.Since all this helps to lower the cost of equity,we will continue to emphasize maintaining and strengthening our financial foundation,as it provides

253、 the foundation for sustained future growth.We also achieved record returns to shareholders in the fiscal year ended March 2022,with annual dividends per share setting a high of 62 and the Marubeni Groups inaugural share buyback (of 30 billion).Our share price reached an all-time peak,rallying to a

254、14-year high,which we believe was driven by a positive market evaluation of our enhanced ROE(over 20%)and a reduced cost of equity,in addition to the achievements outlined above.I am gratified and humbled by the evaluations and expectations of Marubeni shareholders and investors.Strategic allocation

255、 of capital under GC2024Having reached a certain point in rebuilding our financial foundation,the aim of capital allocation in the GC2024 period will be to fund investments to support sustained growth in profits,while also seeking to improve shareholder returns.In the three-year GC2021 period,our cu

256、mulative spend on new investments including CAPEX was about 740 billion,compared with an initial target of 900 billion.This reflected rigorous selectivity in our investment criteria due to the constraints imposed by the COVID-19 pandemic and investing conditions.About 90%of the total was allocated t

257、o Horizon 1&2*1 projects aimed at improving existing businesses or the pursuit of strategies in existing business domains.We see considerable space for growth in many of our existing businesses that have high competitiveness and profitability.Several of our operating companies posted record profits

258、in the fiscal year ended March 2022.We believe a steady stream of precisely targeted growth investments is needed to achieve steady improvements in earnings and cash flow.The significant impairment losses booked several times in the past have dragged down our earnings and hindered us in improving th

259、e financial foundation.Having learned the related lessons,the strategy we announced as part of the GC2021 plan was the Business Policies SPP*2,standing for Strategy,Prime and Platform.Under SPP,we clarify the concept of“staying strategy-focused”without making investment itself an objective.We define

260、 strategy here in terms of the business strategy where we aim to reach a situation where we can maximize value within any given field,with investments regarded simply as the means to execute the strategy.Over the past few years,this mindset of pursuing an MARUBENI CORPORATION INTEGRATED REPORT 20222

261、7Business Portfolio&StrategyCorporate DataValue Creation at MarubeniRealizing Value CreationBusiness Portfolio&StrategyCorporate DataSPP-based business strategy has permeated the Group,and our new investments have supported a steady expansion of the earnings base.Elsewhere,we have revised internal r

262、ules to help encode lessons learnt from investment failures of the past.We set caps on the maximum investment for any individual project to avoid the problem of excessive concentration of sector risk,which have caused sharp reductions in shareholders equity after investment failures.In addition to r

263、igorous analysis of any investments at the entry stage,we also upgraded our systems to follow up progress.Better monitoring of new and major investments to track the progress and performance relative to the plan helped us highlight issues early and enabled us to deploy countermeasures.In addition,fr

264、om April 2021 we have reinforced our organizational set-up*3 to support better post-merger integration(PMI)for new investments.By creating a more meticulous process to manage new investments from execution phase to follow-up,we are trying to boost the success probability for each project.Going forwa

265、rd,we will continue to seek ways to improve internal rules and processes further.After the“three years of transformation”in GC2021,we regard GC2024 to be“three years of putting strategy into practice.”One of the basic policies is to strengthen existing businesses and build new business models using

266、a multi-layered approach.At the same time as strengthening the earnings base by prioritizing allocation of capital to existing business domains where we enjoy a competitive advantage and strong profitability(Horizon 1&2),we will also focus selectively on developing new business domains to build the

267、pillars of future earnings(Horizon 3*4).Existing business improvements include,for example,our regional development of the agri-inputs business and expansion in food business sectors such as livestock and instant coffee.In the infrastructure domain,we are accumulating blue-chip assets in renewable e

268、nergy and social infrastructure.In the finance and leasing business,further growth of our used-car sales financing operations.In the resources sector,investments are targeting expansion of existing projects and improving cost-competitiveness.Alongside this,we are accelerating initiatives in new busi

269、ness model creation.Besides the efforts of our Next Generation Business Development Division,we established*5 the Next Generation Corporate Development Division in April 2022.Our other business divisions are also targeting new sectors such as new energy businesses with the potential to underpin a de

270、carbonized society.We have also introduced new mechanisms so we can upgrade our existing asset base in terms of profitability and capital efficiency.In specific terms,utilizing ROIC,CROIC and RORA*6 as metrics,we are targeting continuous improvements in the profitability and capital efficiency of bu

271、sinesses generating low returns,repeating iterations of the PDCA cycle*3 to assess every situation.Our aim is to take appropriate measures to improve each individual asset while maintaining consolidated ROE of at least 15%.With businesses where the forward indicators point to incipient decline,we wi

272、ll consider asset divestment or replacement.By steadily developing and establishing the new pillars of our earnings base via strengthening our existing businesses and building new business models,we will work to engineer continuous improvements in key performance metrics such as net profit and core

273、operating cash flow.*1.Horizon 1:improvement of existing businesses.Horizon 2:pursuit of strategies in existing business domains.*2.Please see“Business Models”(P.17)for further details.*3.Please see“Business Investment Process”(P.33)for further details.*4.Horizon 3:new business models and unapproach

274、ed business domains.*5.Please see“Upgrading Next Gen Initiatives”(P.37)for further details.*6.ROIC:Return on Invested Capital;CROIC:Cash Return on Invested Capital;RORA:Return on Risk Asset.Shareholder returns policyWe are also working to upgrade and expand returns to Marubeni shareholders.The first

275、 way we are doing that is increasing dividends through profit growth.Under GC2024,we aim to increase dividends by profit growth while keeping the GC2021 policy of a consolidated dividend payout ratio of 25%or more.We posted record-high consolidated net profit in the fiscal year ended March 2022,whic

276、h enabled us to pay a record dividend.We aspire to do even better during the GC2024 period.Secondly,we have set a floor for annual dividends over the three-year GC2024 period(FYE 3/2023 to FYE 3/2025)of 60,the target we initially set for the fiscal year ending March 2023.In an extremely uncertain gl

277、obal business and economic environment with high volatility in commodity prices,we want to promise to keep a stable dividend for shareholders over a three-year period,rather than providing a single year forecast.We also think a stable dividend can help us to lower the cost of equity over time.The th

278、ird way we plan to improve shareholder returns is to use share buybacks.We conducted Marubenis first one ever in February 2022.We will consider share buybacks over the GC2024 period as a flexible way of contributing to gains in corporate value,supplementing our efforts to maintain and MARUBENI CORPO

279、RATION INTEGRATED REPORT 202228MARUBENI CORPORATION INTEGRATED REPORT 2022Realizing Value CreationAssetsDebtEquityCash inDivestmentCore operating cash flowNew investmentCapexChange in working capitalShareholder distributionsRepayment of debtCash outBalance sheetCash flow Generation/maximization of c

280、ore operating cash flow from existing assetsFinancial base strengthened by repayment of debtAccumulation of blue-chip assets through new investment,capex to upgrade existing assetsBalance Sheet and Cash Flow ManagementEquity accumulation via generation of profits from existing assetsMedium/long-term

281、 growth in corporate valueSustain and improve ROEContinual improvement in earnings baseReduce cost of equityGC2018GC2021GC20243Y floor for DPS of 60(Yen)Dividends per share(DPS)02040602017.32018.32019.32020.32021.32022.32023.32024.32025.362improve ROE;improve per-share metrics(EPS/BPS/DPS);foster en

282、hanced supply and demand dynamics for Marubeni shares,considering shareholders equity and the net DER as part of balance sheet and cash flow management.Working to enhance corporate valueOur view is that the foundation of enhancing corporate value is the appropriate allocation of capital to growth in

283、vestments and shareholder returns,backed by cash maximization based on our efforts to strengthen the earnings-generation capacity and cash flow of existing businesses.As outlined above,our success in achieving a certain level of financial rebuilding has enabled us to look at strategically allocating

284、 capital during the GC2024 period with greater flexibility than was previously the case.ROE increased to 23%in the fiscal year ended March 2022.Going forward,we will sustain and improve ROE through our continuous efforts to expand the earnings base through increases in net profit and core operating

285、cash flow,based on strategic capital allocation.At the same time,reducing cost of equity is also an important goal.As I explained above,as well as optimization of financial leverages,we are looking to minimize performance volatility while minimizing the risk of impairment losses through more discipl

286、ined and rigorously targeted investments.Other initiatives to reduce cost of equity involve efforts to increase non-financial value based on improving sustainability,upgrading governance,building human capital,or acting to address climate change.We aim to enhance corporate value in the medium and lo

287、ng term through the steady implementation of these various measures.MARUBENI CORPORATION INTEGRATED REPORT 202229Business Portfolio&StrategyCorporate DataValue Creation at MarubeniRealizing Value CreationBusiness Portfolio&StrategyCorporate DataPutting Business Policies SPP into PracticeAgri-input B

288、usinessHelena Agri-Enterprises,LLC(U.S.)Agri Business DivisionPrimeAstounding growth achieved through many years of independent operationsOn October 29,2019,as part of efforts to deploy the knowledge and know-how gained globally from companies such as Helena to other areas,we acquired in Brazil-base

289、d agri-input retailer Adubos Real S.A.(AR),making the company into a Group subsidiary.Established in the state of Minas Gerais,AR has been supporting agricultural producers across the region for about 40 years,helping them increase productivity by supplying agri-inputs and providing consulting servi

290、ces relating to their appropriate use.ARs operations have contributed to Brazils agricultural development.PlatformGlobal deployment of knowledge and know-how gained from HelenaHelena is an agri-input(crop protection products,fertilizers,seeds,etc.)retailer in the U.S.that Marubeni acquired in 1987.O

291、perating at about 100 locations at the time of its acquisition by Marubeni,Helena has currently expanded to about 500 locations within the U.S.,the worlds leading agribusiness market with arable acreage nearly four times the total land area of Japan.With an extensive location network and some 6,000

292、employees consisting of specialists in sales,technology,agriculture and management specialized in the agri-input business,Helena has established a solid position in the industry as a top-class agri-input retailer in the U.S.Helenas earnings have grown over the long term as a result of reinforcing bu

293、sinesses through ongoing investments of additional capital,acquiring rivals to expand scale and augment facilities*,and expanding the range of available products and services,in addition to customer appreciation of high-value-added functions.Helenas network of locations extend beyond the southern U.

294、S.,where its head office is located in Tennessee,to encompass regions across the Americas where agriculture is a robust industry.Helena aims to further expand the scope of its operations.*Construction of locations,strengthen functions of locations(increase products handled,add blending functions for

295、 fertilizers,etc.),purchase of sales vehicles,etc.Helena works to differentiate its strengths(including products,services,and functions)and engages in the creation of added value not from a product starting point but from a customer starting point.At the same time,to further grow its community-based

296、 consulting business,which is one of its strengths,the company is working to build and expand its network of locations and gain a deep understanding of the needs of agricultural operators across the U.S.,thereby enhancing its competitive edge.Sales personnel at Helena do their utmost to provide solu

297、tions while listening to the concerns and issues of agricultural producer customers on a daily basis.To enhance the competitiveness of consulting services that involve the sale of agri-inputs,Helena is further reinforcing functionality by providing“AGRIntelligence*”(an analysis and diagnostic tool t

298、hat utilizes data)in accordance with customer needs.Helena sells its own line of products,HPG,as specialized crop protection products and fertilizers,which contribute greatly to adding value of itself for customers.*For more details on AGRIntelligence,see Digitalization of Agri-Solutions at Helena o

299、n P.35.StrategyTargeting the provision of services with higher added valueMARUBENI CORPORATION INTEGRATED REPORT 202230MARUBENI CORPORATION INTEGRATED REPORT 2022Realizing Value CreationHelenas U.S.networkHelena Sales(Billions of U.S.dollars)2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 20

300、16.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.301234567No.of Helena locations inside the U.S.FYE 3/2008FYE 3/2022500300Position of Helena in U.S.agri-input marketManufacturersWholesalersRetailersCustomersGlobal fertilizer manufacturersGlobal seed and crop protection product manufacturersAgricultural

301、producersMacroSource,LLC(former Gavilon Fertilizer,LLC)*Other retailersDistribution of locationsManufacturingRetailingWholesalingTerminalAerial spraying:Marubeni Group*The company name has been changed from Gavilon Fertilizer,LLC to MacroSource,LLC in September 2022.MARUBENI CORPORATION INTEGRATED R

302、EPORT 202231Business Portfolio&StrategyCorporate DataValue Creation at MarubeniRealizing Value CreationBusiness Portfolio&StrategyCorporate DataBusiness Investment ProcessThe Corporate Management Committee periodically reviews the business vision and strategy defined for each segment in which the Ma

303、rubeni Group operates.As well as improving existing assets,business investment is a critical part of realizing this vision.In selecting investments that will help to maximize the value of our business portfolio,including corporate acquisitions,and joint ventures with partners with certain strengths,

304、we seek to apply the most suitable investment approach on a case-by-case basis.After the initial investment,we seek to fully utilize Marubeni Group functions to maximize the corporate value of investees.Origination1.Investment decision2.PMI3.Monitoring4.The Business Policies SPP is a critical factor

305、 in the origination of any business investments aimed at developing our strategic presence within existing domains or creating new business models.In the origination phase,we seek to leverage our business intelligence and partner/customer networks in industry sectors and regions as we consider the s

306、trategic value,growth potential,uniqueness and competitive edge of any proposed business investment.Origination1.(1)For new investment projects,Business Groups(business divisions/business departments)must first submit detailed project summaries and business plans.(2)In response,the relevant Corporat

307、e Staff Group submits opinions on the result of risk analyses from both a quantitative and qualitative perspective.(3)The Investment and Credit Committee*1 reviews the feasibility and analysis-based risk profile of each project,including any concentrations of risk at the Group level.The major quanti

308、tative evaluation criteria used are the IRR,payback period and PATRAC*2.(4)The project is then forwarded to the Corporate Management Committee for further scrutiny and approved by the President.Projects exceeding a materiality threshold require deliberation by the Board of Directors.*1.Besides the C

309、hair and Vice Chair,the members of the Investment and Credit Committee include the department heads for Corporate Planning&Strategy,Legal,Corporate Accounting,Finance,and Risk Management.*2.PATRAC(Profit After Tax less Risk Asset Cost):A performance indicator to measure the extent to which returns e

310、xceed a minimum risk-adjusted return target.*To aid faster decision-making,there is scope within the process for authorization by the relevant Group CEO or head of the business division,depending on deal size(with project deliberation and approval by an investment committee chaired by that senior ma

311、nager in these cases,rather than the Investment and Credit Committee)(1)Business GroupsApplicationBoard of Directors(2)Corporate Staff GroupsAnalysis/opinionInvestment decision2.We have created a multilayered decision-making process to help pursue investment returns while controlling risks,while als

312、o delegating authority to each Business Group to support faster decision-making.Decision-making ProcessOur deliberations on business investments take into consideration the important points outlined below.Important Points for DeliberationQualitative EvaluationQuantitative EvaluationBusiness(micro)Ex

313、ternal Environment(macro)StrategyPrimePlatformBusiness PoliciesACBD Social trends(megatrends,technological innovation,risk of obsolescence)Changes in potential needs/values Industry trends/industry knowledge Sustainability/ESG Compliance Related regulations(finance,taxation,foreign investment regula

314、tions,etc.)IRR premium(country risk,currency risk,etc.)Liquidity of acquired assets Probability of assumptions used for future predictionsBD Positioning of investment concerned in medium-to long-term growth strategy Understanding of investees business model Added value created by/significance of Mar

315、ubenis participation Investees competitive edge and its continuity Action plan for realization PMI(Post-merger integration process)Completion risk/Technological risk Internal rates of return(IRR)Payback period PATRAC Validity of acquisition price KPI Exit criteriaAC(3)Investment and Credit Committee

316、(4)Corporate Management CommitteeMARUBENI CORPORATION INTEGRATED REPORT 202232MARUBENI CORPORATION INTEGRATED REPORT 2022Realizing Value CreationPMI3.From April 2021,we began managing the PMI*process via an integrated framework involving the relevant business groups and Corporate Staff Groups,with a

317、dministrative liaison provided by the Corporate Planning&Strategy Dept.and Risk Management Dept.This approach seeks to maximize the post-merger synergies we are targeting.All planning and process management in the PMI phase involve the relevant Corporate Staff Groups in a bid to provide greater supp

318、ort to the business department charged with creating the projects management set-up and overseeing synergy realization.*PMI stands for post-merger integration.Strengthening PMI set-upsLearning from large earlier impairment losses,we are focused on strengthening our organizational capabilities for bu

319、siness investment.In cases where Marubeni will run the business independently during the post-investment phase,we aim to establish an investee management set-up as quickly as practicable to help realize synergies.Under GC2024,with the aim of improving the return on our existing assets we began utili

320、zing PDCA cycles for the periodic evaluation of capital efficiency and risk/return ratio(based on ROIC/CROIC and RORA)of each business division/department and operating company.Formulating and executing action plans for business improvement promises to support self-sustaining growth by improving our

321、 performance metrics and enabling parallel business development within peripheral domains.PDCA cycle for strengthening the earnings baseBeginning of termMiddle of termPick up businesses with low efficiency ratiosShort-listed businesses reviewed by Corporate Management CommitteeMake short-list of bus

322、inesses after considering individual improvement plansReview of results improvement plansMonitoring CycleMonitoring4.By monitoring existing assets,we seek to engineer improvements in business investments and individual projects to contribute to higher consolidated returns.Monitoring focuses on new a

323、nd significant projects in the post-investment phase,the aim being to identify problems and formulate solutions as quickly as possible.Besides internal business group reports,regular reports are generated for the Investment and Credit Committee,the Corporate Management Committee,and the Board of Dir

324、ectors.Monitoring process1 Within three years of initial investment2 Negative PATRAC three years running3 Other criteria(low returns,project peak anticipated,etc.)An internal process is used to decide if a project that is subject to monitoring or has specific issues should be restructured or exited

325、after the consideration of multiple factors relating to the strategic value,growth potential and profitability of the business.Monitored projectsMain divestments in GC2021 Gavilon grain operations(low efficiency)UK North Sea upstream oil/gas projects(sustainability,ESG factors)PMI:gathering intellig

326、encePMI:reviewing and sharing the approachProcess of gaining expertise in supporting establishment of operational infrastructure(based on project scale and business model).PMI planning and operational execution intelligence is encoded into guidelines for internal dissemination.This helps raise the p

327、robability of success for every business investment by leveraging past intelligence to help select the best approach for each project,even the most recent initiatives.MARUBENI CORPORATION INTEGRATED REPORT 202233Business Portfolio&StrategyCorporate DataValue Creation at MarubeniRealizing Value Creat

328、ionBusiness Portfolio&StrategyCorporate DataDX Strategy of Marubeni GroupSet profit improvement strategies for each business domain in different organizationsDefine specific growth strategies for each business domainGrowth strategy implementationKey roles of digital technologyHorizon 1:Improvement o

329、f existing businessesHorizon 3:White Space31Cost reduction,efficiency improvement/Business expansion,top-line growthBusiness model/domain reformsDigital talent base,IT infrastructureFoundation of our growth strategy2SupportMaximize use of digital technology/Combine resources,experiences and networks

330、 of Marubeni Group in cross-functional waysMessage from the CDIOAnticipating the changing times,we are accelerating implementation of our future-oriented,multi-layered growth strategyMasayuki Omoto Executive OfficerChief Digital Innovation Officer(CDIO),Chief Operating Officer,Next Generation Busine

331、ss Development Div.Since setting up an internal organization dedicated to digital technology and transformation(DX)in 2017,the Marubeni Group has been pursuing DX initiatives in multiple business domains.Under the GC2024 strategy,our current stage focuses on implementation of a multi-layered growth

332、strategy that utilizes a digital approach with a sense of speed.Our DX strategy is focused on implementing this multi-layered growth strategy,which comprises strategies both to improve existing businesses(Horizon 1&2)and to create new business models for growth domains(Horizon 3).As part of our meas

333、ures to strengthen our existing businesses,we carried out the Disruptive DX Program in the fiscal year ended March 2022,and formulated a growth strategy that anticipates the power of digital technology.At the program,our younger generation leaders of each business division examined the potential of disruption caused by advances in digital technology,meaning the obsolescence of businesses,and condu