Mitsui & Co.,ltd · TSE:8031
Mitsui & Co.,ltd — Investor Day (2019)
27 slides from Mitsui & Co.,ltd's investor day presentation, 2019
Slide 1: Healthcare Business Strategy
Healthcare Business Strategy Healthcare & Service Business Unit Koji Nagatomi Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Slide 2: Healthcare Market in Asia: Accelerating growth unaffected by economic conditions
Healthcare Market in Asia Growth of Asia’s* healthcare spending Accelerating growth *South East Asia + China + India （USD bil） unaffected by economic 3,100 conditions Changes in Population Income Aging 710 Disease Growth Growth Population Patterns 2016 2030 (Source) OECD, World Bank, Mitsui’s foreca
Slide 3: Healthcare Market in Asia: Significant shortage of hospitals
Healthcare Market in Asia Number of hospital beds per 1,000 population Significant shortage of （Number of beds） hospitals 4.8 (no. of beds) 2.8 2.8 2.3 1.9 Changes in 0.7 Population Income Aging Disease Growth Growth Population Patterns OECD Singapore Malaysia India China Turkey Average （Source） MET
Slide 4: Hospital Business Management in Asia
Hospital Business Management in Asia Increased volume and quality of care Maximized value of medical services Management Structure Challenge／Lever ① Challenge／Lever ② Challenge／Lever ③ Increasing Revenue Optimizing Cost M&A・Increasing (unit price x no. No. of Beds of patients) Strategic problem solv
Slide 5: Mitsui's Resources in Hospital Business
Mitsui’s Resources in Hospital Business ■Progress in management participation and expansion of human resources Additional (Persons) Additional investment in IHH Platform 1 Investment in investment in 60 ■Industry experts（MHM） Columbia Asia Columbia Asia Developing a large and strong platform 50 ■MBK
Slide 6: IHH as Core Platform
IHH as Core Platform IHH (Fortis included) Data No.1 Turkey Presence in 12 countries No.1 Malaysia, Turkey, Singapore, India, Brunei, Holland, Bulgaria, Macedonia, UAE, China (including HK), Mauritius, No.2 Sri Lanka India Total no. of hospital beds 15,000 No.2 Malaysia No.1 No.1 beds Singapore ※Com
Slide 7: Track Record in Hospital Business ①
Track Record in Hospital Business ① 【Progress of IHH’s EBITDA】 【Our focus since initial investment in 2011】 （USD mil） 613 ◆ Formulating a growth strategy ◆ Supporting geographical expansion ◆ Formulating and executing capital strategies ◆ Strengthening IHH’s management base 218 2011/12 2018/12 3,500
Slide 8: Track Record in Hospital Business ②
Track Record in Hospital Business ② 【Progress of CLA’s EBITDA】 A hospital group 【Our focus since initial investment in 2016】 （USD mil） 55 targeting middle- income patients ◆ Developing a management structure ◆ Formulating strategy to increase revenue (unit price × no. of patients) ◆ Optimizing cost
Slide 9: Growth strategies centered on the hospital business
Growth strategies centered on the hospital business ◆ Identify demand-driven business opportunities through participation in hospital business which is a “place” representing a miniature version of the healthcare industry ◆ Leverage neutrality as a trading company and take an active position in mult
Slide 10: Growth Strategy 1. Expansion into China and India
Growth Strategy 1. Expansion into China and India 【IHH’s geographical presence】 ■Growth of healthcare spending in China and India Bohai Bay Economic Rim Zone (Unit: US$ bn) （Beijing and others） China Central China Yangtze River Delta 1,900 ◆ Expanding business through IHH ◆ Entered into a MOU with C
Slide 11: Growth Strategy 2. Business spin-out
Growth Strategy 2. Business spin-out ◆ Strengthening and expanding ancillary businesses of hospitals ◆ Promoting further growth through appropriately timed spin-outs Achieving further growth in external markets Specialty Diagnostic Clinic Imaging Spin-out Hospital Clinical Examination Ancillary Busi
Slide 12: Growth Strategy 3. Leveraging medical data
Growth Strategy 3. Leveraging medical data ◆ Build a medical data platform centered on IHH and leverage such data Strengths of IHH Volume of Data Value of Data Vision Approx. 600,000 inpatients and Enhance operational approx. 6 mil outpatients per annum. efficiency and improve quality of care Asia’s
Slide 13: Quantitative goals and action plans
Quantitative goals and action plans 【Changes in Mitsui’s equity proportional EBITDA of hospitals and ancillary businesses】 (Not including new investments) (Unit: ¥bn) CAGR 16% 59.0 38.0 22.0 FY19/3 Actual FY 20/3 Plan FY 23/3 estimate FY 28/3 estimate Expansion of business base （Asia） （China, India）
Slide 14: Appendix
Appendix IHH Healthcare Bhd. (IHH) PHC Columbia Asia DaVita Care Columbia Asia is a hospital group providing high quality DaVita Care operates dialysis clinics in China and South medical services to the middle-income population in Asia East Asia. The group aims to expand and improve the where rapid
Slide 15: LNG Business Strategy
LNG Business Strategy Energy Business Unit II Motoyasu Nozaki Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Slide 16: LNG Business Environment: Dual Challenge
LNG Business Environment Energy demand increasing along with economic and population growth “Dual Challenge” MORE CLEANER energy energy Addressed through LNG and its comparatively low environmental impact Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 2
Slide 17: Basic Strategies
Basic Strategies Resource Development Supply Global Markets Reinforce our competitive asset Expand and optimize portfolio our LNG Maximize value Develop new sales/supply portfolio of existing assets pipeline projects Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED. 3
Slide 18: Existing LNG Assets
Existing LNG Assets LNG Gas Upstream ©Sakhalin Energy SakhalinⅡ Marcellus Shale Cameron LNG Train1 QatargasⅠ Abu Dhabi LNG QatargasⅢ Oman LNG Tangguh Equatorial Guinea LNG Meridian CSG North West Shelf “Image supplied by the North West Shelf Project” Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVE
Slide 19: LNG Assets under Development
LNG Assets under Development Annual Production Capacity Cameron LNG Train 2 and Train 3 • Establishing new LNG production facilities 8m tons ©Sakhalin Energy Sakhalin II expansion Mozambique Area 1 • Natural gas resource development, establishing new LNG production facility 12m tons Browse gas field
Slide 20: Mozambique Area 1
Mozambique Area 1 Development History Ownership Final investment decision to be made 2019 Anadarko Mitsui E&P ONGC/Oil India ENH Bharat PTTEP Development plan 2018 approved by government Area 1 Consortium OFFSHORE AREA 1 Marine concession agreement 8.5% 2017 concluded with government Golfinho/Atum 1
Slide 21: Mozambique Area 1: reserves and sales destinations
Mozambique Area 1 ◆ One of the world’s largest natural gas reserves (75 trillion cubic feet) ◆ Located in East Africa, a new supply source ◆ Strategic location provides access to markets in the Far East, Asia, Europe, Central and South America, and others ◆ Strong support from the Mozambique governm
Slide 22: Mitsui's Equity Share of Annual Production Capacity
Mitsui’s Equity Share of Annual Production Capacity Total of over Building long-term trust with a (10,000 tons) 1200 10m tons variety of stakeholders including buyers, operators, host Mozambique Area 1 governments, etc. 1000 Cameron 800 600 Qatargas Ⅲ SakhalinⅡ/Tangguh Equatorial Guinea 400 Oman Qat
Slide 23: Expand and optimize our LNG sales/supply portfolio
Expand and optimize our LNG sales/supply portfolio ◆ Mitsui currently handling three million tons per year; total seven million once Cameron reaches full production ◆ Ability to monetize LNG by ourselves is key to developing the LNG business going forward ◆ Marketing functions being expanded in four
Slide 24: Cameron LNG
Cameron LNG Development History Ownership Sempra Energy Mitsui & Co. Mitsubishi Corp./Nippon Yusen JV Production start at Train 1 2019 TOTAL 16.6% 2014 • Conclusion of EPC contract for liquefaction 16.6% 50.2% ◆ Annual production capacity of 12 plant million tons (total three trains) • Final investm
Slide 25: Quantitative Forecast
Quantitative Forecast Unit: ¥ billion ■ Profit after tax (energy segment) 219.1 ■ Core operating cash flow (energy segment) ■ Profit after tax 200- (LNG-related business) 95.7 130- 220 120- ■ Core operating cash flow 90- 140 140 (LNG-related business) 96.3 100 84.5 Mar/19 Mar/25 Mar/30 Actual Foreca
Slide 26: A Cautionary Note on Forward-Looking Statements
A Cautionary Note on Forward-Looking Statements: This material contains statements (including figures) regarding Mitsui & Co., Ltd. (“Mitsui”)’s corporate strategies, objectives, and views of future developments that are forward-looking in nature and are not simply reiterations of historical facts.
Slide 27: 360° business innovation.
360° business innovation. MITSUIECO.