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Overview of Operations

Metal Products

“What We Aim to Be” We aim to build a unique business portfolio based on medium-to-long-term growth strategies and become an organization that combines impressive earning power and stability. Makoto Horie General Manager Metal Products Business Unit

The global and extensive value chain we are developing as a business unit encompasses various metal products, including steel products such as steel sheets, tubular products, and nonferrous metal products such as aluminum. In the steel sheet-related field, we deliver steel sheet products mainly to automotive and home appliance manufacturers via our worldwide steel service center network, which provides functions including procurement, inventory management, and processing.

In the tubular products field, we function as a total service provider by making our proprietary supply chain management (SCM) system available to oil and gas companies. In addition, in the non-ferrous products & metals field, our priority is to expand our production and sales locations for aluminum ingot and aluminum sheets.

Click here for information on the strategies of the Metal Products Business Unit.

Steel sheet-related

  • Leading market shares in such niche segments as rails, wheels, and axles for trains
  • Expertise, solutions capabilities, and strong customer network in relation to steel sheets for automobiles

Tubular products

  • One of the world's largest handlers of oil country tubular goods, strategic partnerships with energy majors, and service provision capabilities and development capabilities realized through global network

Non-ferrous products & metals

  • Sharing of global growth strategies with major partners

Steel sheet-related

  • Upgrading of existing business models based on information and expertise accumulated through steel sheet-related trading
  • Creation of new business models reflecting customers' viewpoints

Tubular products

  • Catering to localization of demand in oil-producing countries and utilizing ICT for marketing activities

Non-ferrous products & metals

  • Securing stable supplies of bauxite and alumina, which are the raw materials of aluminum ingots

Steel sheet-related

  • Advancement of modal shifts in developed countries and development of railway infrastructure in emerging countries
  • Steady growth of automotive production globally

Tubular products

  • Participation in oilfield equipment, materials, and services businesses, which are closely related to oil country tubular goods businesses; expansion of share of oil country tubular goods market; and business foundations that exploit network of Edgen Group Inc.

Non-ferrous products & metals

  • Introduction of lighter vehicles in response to stricter fuel-efficiency regulations

Steel sheet-related

  • Oversupply of steel sheets produced in China and volatility in steel sheet market
  • Obsolescence of existing products due to automotive industry's global environmental measures or dramatic change in business conditions due to emergence of alternative materials

Tubular products

  • Change in purchasing format of oil and gas development industry, structural change in industry due to realignment of related industries, and spread of new alternatives to tubular products

Non-ferrous products & metals

  • Intensification of competition due to aluminum products made in China

Global Portfolio

Transportation & Construction Systems

“What We Aim to Be” We will anticipate changes in business conditions and change and expand business fields flexibly while realizing sustained growth. Naoki Hidaka General Manager, Transportation & Construction Systems Business Unit

We are advancing our upstream, midstream, and downstream operations in the areas of ships, aircraft, railway, automobiles, and other transportation systems as well as construction equipment.

In the ship, aerospace & transportation systems field, we run a leasing business focused on aircraft. We are also the only shipyard shareholder among Japanese trading companies and operate ships that we own and jointly own as well. In the automotive field, we are expanding and enhancing the major functions served by our value chain in areas such as manufacturing, sales and distribution, and lease and financing. In the construction equipment field, we have the highest transaction volume of construction equipment among trading companies. In addition to our worldwide equipment sales business, we focus on expanding our rental business for construction equipment and repair-maintenance service operation for mining equipment.

Click here for information on the strategies of Transportation & Construction Systems Business Unit.

Ship, aerospace & transportation systems

  • One of Japan's leading general leasing businesses
  • World-class aircraft leasing businesses, transportation system businesses, and shipbuilding businesses

Automotive

  • Value chain that globally covers upstream through to downstream business fields

Construction equipment

  • Business management expertise and local executives in each region developed through many years of hands-on business management

Ship, aerospace & transportation systems

  • Replacement of assets in portfolios of ship businesses
  • Expansion of foundations of general leasing businesses and aircraft leasing businesses
  • Advancement of railway infrastructure businesses

Automotive

  • Business innovation in response to new car society resulting from revolution in automotive technology

Construction equipment

  • Strengthening and expansion of business foundations in emerging markets

Ship, aerospace & transportation systems

  • Increase in customers for aircraft and railways in emerging countries

Automotive

  • Progress of motorization with a focus on emerging countries
  • New businesses resulting from new automotive technological innovation, such as self-driving cars and IoT

Construction equipment

  • Increase in construction demand as population increases and urbanization advances worldwide

Ship, aerospace & transportation systems

  • Decrease in shipping cargo movements accompanying softening growth in China's economy

Automotive

  • Geopolitical market risk

Construction equipment

  • Cyclical nature of the market

Global Portfolio

Environment & Infrastructure

“What We Aim to Be” We aim to expand long-term, stable earnings foundations and contribute to society's development by growing infrastructure businesses that cater to market demand and increasing and improving logistics capabilities. Masayuki Hyodo General Manager, Environment & Infrastructure Business Unit

In the global power infrastructure field, we are developing overseas power generation businesses and EPC*1 businesses as well as businesses involving rechargeable batteries. In the environment and infrastructure project field, we are advancing renewable energy businesses focused on wind and solar power generation in Japan and overseas, electricity retailing in Japan, industrial infrastructure businesses that are mainly involved with industrial facilities, and water infrastructure businesses. In the logistics & insurance fields, apart from our logistics services encompassing shipping, customs clearance, and delivery, we arrange various insurance contracts and also develop and operate overseas industrial parks.

Click here for information on the strategies of Environment & Infrastructure Business Unit.

Project formation and advancement capabilities underpinned by experience and track record

Infrastructure businesses

  • Project management capabilities that encompass stages from design through to construction and from business development through to management and industry network

Logistics & insurance and overseas industrial parks

  • Experience in global logistics for a wide range of goods, insurance-based risk management capabilities, wealth of experience in development and management of industrial parks overseas, and capabilities for supporting tenant companies

Establishment of organizations that empower diverse personnel to exercise leadership

  • Aiming to optimize utilization and deployment of personnel on global basis to develop the businesses globally, cultivate markets and capture demand, and secure cost competitiveness

Creation of growth opportunities by combining environmental preservation with economic benefits

Infrastructure businesses

  • Increase in demand for environment-friendly infrastructure due to growing environmental awareness and economic development of emerging countries and increase in business opportunities resulting from deregulation of electricity retail market in Japan

Logistics & insurance and overseas industrial parks

  • Rise in need for logistics insurance services and overseas industrial parks as Japanese companies advance into overseas markets

Agile responses to uncertain, volatile conditions

  • Drastic changes in industries, such as realignment among heavy electrical machinery manufacturers in Japan, the United States, and Europe and the emergence of China
  • Changes in conditions or regulatory strengthening for coal-fired power plants and changes to respective countries' incentive schemes for renewable energy power generation businesses

Global Portfolio

Media, Network, Lifestyle Related Goods & Services

“What We Aim to Be” We will create new lifestyles by developing diverse consumer and lifestyle-related businesses globally. Hirohiko Imura General Manager, Media, Network, Lifestyle Related Goods & Services Business Unit

Our unit globally develops businesses that provide consumer-oriented products and services in fields such as media, network, retail, foods, materials & supplies and real estate. In our media and network fields, we focus primarily on Cable TV, IT solutions, and integrated mobile business.

In our retail and food products fields, we are developing a wide range of businesses, from retail businesses such as supermarkets to food production and sales. In our materials & supplies and real estate fields, our portfolio consists of top-class operating companies in ready-mixed concrete as well as lumber and building materials. In addition, our main business pursuits are office buildings, retail facilities, and housing development and sales.

Click here for information on the strategies of Media, Network, Lifestyle Related Goods & Services Business Unit.

Media and network

  • J:COM, with No. 1 share of Cable TV market
  • Customer networks of SCSK and T-GAIA

Retail and food

  • Expertise in retail business acquired through management of Summit, Tomod's, and Jupiter Shop Channel

Materials, supplies and real estate

  • Comprehensive portfolio of real estate in Japan, including office buildings, retail facilities, and condominiums
  • Operating companies with leading shares in Japanese construction materialsrelated markets
  • Ownership of large-scale forest resources

Media and network

  • Further improvement of customer satisfaction for telecommunication business in Myanmar

Retail and food

  • Expansion of revenue base of food businesses

Materials, supplies and real estate

  • Establishment of biomass fuel manufacturing businesses
  • Further expansion of forest resources
  • Manage business against lower demand for construction materials in Japan and changing real estate market as depopulation advances

Media and network

  • Deregulation of electricity retailing
  • Extensive utilization of ICT

Retail and food

  • Growth of e-commerce market
  • Diversification and increased sophistication of food in emerging countries

Materials, supplies and real estate

  • Increase in demand for real estate and construction materials thanks to holding of 2020 Tokyo Summer Olympic and Paralympic Games
  • Increase in demand for timber products in China due to ban on logging of natural forests in China
  • Increase in demand for biomass accompanying rise in renewable energy

Media and network

  • Increased competition in pay TV and fixed broadband businesses
  • Structural change in the mobile telecom industry

Retail and food

  • Weather and climate risks in agricultural businesses
  • Decline in consumer confidence due to worsening economic conditions

Materials, supplies and real estate

  • Rise in forest values
  • Overheating of real estate market

Global Portfolio

Mineral Resources, Energy, Chemical & Electronics

“What We Aim to Be” In the mineral resources and energy field, we aim to build a high-quality portfolio that is effectively diversified against risk, while in the chemical and electronics field our goal is to develop high-value-added businesses. Masahiro Fujita General Manager, Mineral Resources, Energy, Chemical & Electronics Business Unit

In the mineral resources and energy field, we are concentrating efforts bringing forward the completion and profit realization of projects that are in ramping up stages, such as the Ambatovy nickel project and the Sierra Gorda copper and molybdenum mine project. On a global scale, our trading businesses provide carbon products, iron and steel making raw materials, petroleum, and gas as well as derivative product functions. In the chemicals and electronics field, we trade in raw materials, organic and inorganic chemicals and plastics, and cutting-edge electronics industry materials and actively engage in EMS operations. In the life science field, we handle pharmaceuticals, crop protection products, fertilizer, and pet care products.

Click here for information on the strategies of Mineral Resources, Energy, Chemical & Electronics Business Unit.

Mineral resources and energy

  • Equity interests in high-quality mines and oil and gas projects
  • Track record of participating in operation and business management of mines and experience and expertise accumulated as a result
  • Stable relationships with customers and business partners with global operations

Chemical and electronics

  • Expertise and global customer base developed through many years of trading
  • Electronics Manufacturing Services (EMS), which call for advanced production technology as well as quality control and supply chain management

Mineral resources and energy

  • Bringing forward completion and profit realization of projects that are in ramping up stages
  • Strengthening of competitiveness through ongoing cost reduction in existing businesses

Chemical and electronics

  • Rapid realization of profitability in new businesses in petrochemicals, crop protection products, and pharmaceuticals fields
  • Participation in global fields for niche, high-value-added chemicals

Mineral resources and energy

  • Increase in the demand for mineral resources and energy over medium-to-long term as economic growth continues
  • Based on replacement of existing assets, careful consideration of acquisition of equity interests in highly cost-competitive projects that are in production

Chemical and electronics

  • Acquisition of new businesses in step with population increases and economic development of emerging countries, mainly in Asia and South America
  • Expansion and increasing sophistication of EMS value chains related to energy saving and resource saving

Mineral resources and energy

  • Slumping demand and low resource prices stemming from slowdown of economic growth in China and emerging countries
  • Competition to increase production among resource majors and continuation of oversupply
  • Country risk associated with changes in legal systems of countries in which projects are located

Chemical and electronics

  • Slowdown of economic growth and currency depreciation among emerging countries
  • Market downturns due to weather and other external factors
  • Loss of advantages due to technological innovation, industry reorganization, or new entry of other companies

Global Portfolio