INTEGRATED REPORTCreating value throughinnovative solutions for ourcustomers and for the world

Marubeni Corporation 2023

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

01

Corporate Data

Publication of the Integrated Report 2023
The Marubeni Integrated Report is created for the purpose of deepening understanding of the Group, realizing value co-creation with all
stakeholders through constructive dialogues facilitated by this report, and ultimately further enhance the Group’s corporate value.
The Marubeni Group is implementing various measures to sustain and improve cash generation, sustain and improve ROE, and reduce thecost of equity. The Integrated Report 2023 is organized around these core objectives, and we have done our best to clearly explain the key pointsof each initiative. In its production, we referred to the Integrated Reporting Framework of the IFRS Foundation and Guidance for Collaborative
Value Creation from the Ministry of Economy, Trade, and Industry.
Since the previous GC2021 Mid-Term Management Strategy, the Marubeni Group has been able to significantly strengthen its businessfoundation while reinforcing its earnings power and financial foundation, as well as improve its investment discipline. In the current GC2024
Mid-Term Management Strategy, Marubeni is implementing strategies to further strengthen each business domain. Alongside this, we areadvancing initiatives to ensure uninterrupted growth, such as deepening human capital management and enhancing non-financial value.
We hope that through this report, we can communicate the aspirations of the Marubeni Group as we stand on a new stage and seek tofurther improve our corporate value.

Contents

01 Value Creation at Marubeni P.03 02 Realizing Value Creation P.24
Improvement ofCorporate Value

04 Values of the Marubeni Group
05 History of Value Creation
07 Marubeni’s Accumulated Strengths
09 Initiatives to Improve Corporate Value over the
Medium and Long Term

10 Message from the President & CEO
15 Value Creation Story
16 Management Capital
17 Message from the CSO
18 Mid-Term Management Strategy GC2024 (April
2022 – March 2025)–Three Years of Putting
Strategy into Practice
19 Progress of Mid-Term Management Strategy
GC2024 (FYE 3/2023 performance)
20 Performance by Business Group (FYE 3/2023)
21 Green Strategy
23 Improving the Corporate Value of Marubeni from the
Perspective of an Outside Director

Sustain and
Improve Cash
Generation

Sustain and
Improve ROE

25 Value Creation Model
26 Strengthening Existing Business Domains
27 Initiatives to Create Value
27 01 Food & Agri: Helena Agri-Enterprises
29 02 Food & Agri: Creekstone Farms Premium Beef
30 03 Finance, Leasing: Nowlake Technology
31 04 Finance, Leasing: Fleet Management Business inNorth America, Aircastle

32 05 Renewable Energy: Renewable Energy
Generation Business

33 06 Resources: Metals Mining Business
34 07 Trade
35 08 Initiatives for the Next Generation (1): Next Generation

38
39
41
42
49
50
51

Business Development Division
36 09 Initiatives for the Next Generation (2): Next Generation
Corporate Development Division
37 10 New Energy: Initiatives in New Energy
Business Policies SPP and Marubeni Group Governance Policy
Business Investment Process
Message from the CAO
HR Strategy
Message from the CDIO
Marubeni’s System for Promoting Utilization of Digital Technology
Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Improvement ofCorporate Value

Sustain and
Improve Cash
Generation

Sustain and
Improve ROE

Reduce Cost of Equity

03 Initiatives for More Sustainable 04 Business Portfolio P.80
Value Creation P.52

Reduce Cost of Equity

53 Message from the CFO
57 Sustainability for the Marubeni Group58 The Material Issues for Sustainability (Materiality)
59 Sustainability Management
60 Climate Change (Disclosure in Line with the
Recommendations of the TCFD)

62 Sustainable Forestry
63 Human Rights & Co-Development with Communities
64 Sustainable & Resilient Value Chains
65 Risk Management
68 Corporate Governance76 Corporate Management

81 Consumer Products Group86 Materials Group89 Energy & Infrastructure Solution Group93 Transportation & Industrial Machinery,
Financial Business Group

96 CDIO

05 Corporate Data P.98
99 Financial Data
101 Non-Financial Data
102 State of Major Green Business Initiatives
105 Major Progress in Greening All Business Domains
106 Scenario Analysis of Climate Change Risks andOpportunities in Line with the TCFD Recommendations

114 Net Profit of Major Group Companies
116 Outstanding Balance of Country Exposure
117 Organization
118 IR Activities
118 External Evaluation
119 Company Profile
119 Stock Information

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Marubeni’s Information Disclosure

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

02

Corporate Data

Integrated Report
Referenced Guidelines
The Global Reporting Initiative (GRI) Sustainability Reporting Standards
ISO26000 Guidance on Social Responsibility

Degree of investor interest

IFRS Foundation: International Integrated Reporting Framework
Ministry of Economy, Trade and Industry (METI) Guidance for Collaborative Value Creation

Integrated Report

Disclaimer Regarding Forward-Looking Statements and Original Language
Integrated Report 2023 contains forward-looking statements 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 Company’scontrol. These are subject to a number of risks, uncertainties and factors, including, but not limited to, economic

Reporting Period

and financial conditions, factors that may affect the level of demand and financial performance of the major

April 1, 2022-March 31, 2023
The contents of the publication include
some information before and after thereporting period.

industries and customers we serve, interest rates and currency fluctuations, availability and cost of funding,fluctuations in commodity 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-looking statements.
The Company has no responsibility for any possible damages arising from the use of information on Integrated
Report 2023, nor does the Company have any obligation to update these statements, information, future eventsor otherwise. Integrated Report 2023 is an English language translation of the materials originally written in

Importance to Marubeni

Japanese. In case of discrepancies, the Japanese version is authoritative and universally valid.

Note Regarding Accounting Standards
The 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 attributable to owners of the parent” is described as “Consolidated Net Profit”/“Net profit” in this report.

Financial information

To Investors

Non-financial information

Our Company

Our Business

Financial results reports

Environment

Results briefing materials
Consolidated financial statements withindependent auditors’ report
Shareholder notifications
Shareholder communications, etc.

Sustainability
WebsiteSocialMarubeni’s Official
Social Media Accounts

Governance
Sustainable Development Report, etc.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Improvement ofCorporate Value

Sustain and
Improve Cash
Generation

Sustain and
Improve ROE

Reduce Cost of Equity

Value Creation at Marubeni
In addition to our values and management philosophy, we explain the driving forces
and strategies behind the Marubeni Group’s value creation, such as our management
resources that have been accumulated throughout its more than 160-year history,
our value creation story, and our Mid-Term Management Strategy.

SECTION

04
05
07
09
10
15
16
17
18

Values of the Marubeni Group19

Progress of Mid-Term Management Strategy GC2024(FYE 3/2023 performance)

20
21
23

Performance by Business Group (FYE 3/2023)

History of Value Creation
Marubeni’s Accumulated Strengths
Initiatives to Improve Corporate Value over the Medium and Long Term
Message from the President & CEO
Value Creation Story
Management Capital
Message from the CSO
Mid-Term Management Strategy GC2024 (April 2022 – March 2025)–Three Years of Putting Strategy into PracticeGreen Strategy
Improving the Corporate Value of Marubeni from the Perspectiveof an Outside Director

03

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Our Values

Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Values of the Marubeni GroupIn accordance with the spirit grounded inManagement Philosophy
Realizing the Vision throughCorporate Activities“Fairness, Innovation and Harmony,” the MarubeniGroup is proudly committed to social and economic
development and safeguarding the global environment
by conducting fair and upright corporate activities.

Our Vision
Group Commitment toIncreasing Corporate Valuein a Lasting Way

Creating value throughinnovative solutions for ourcustomers and for the world

Share the challenge

Company Creed
Values That Act as
Constant Guides

Company Creed “Fairness, Innovation, and Harmony”
Fairness—Act with fairness and integrity at all times.
Innovation—Pursue creativity with enterprise and initiative.
Harmony—Give and earn the respect of others through cooperation.

As social and customer issues become
increasingly complex, it is not possible for
Marubeni alone to provide solutions for everything.
The Marubeni Group addresses social issues,
creates value, and works toward the medium- tolong-term improvement of corporate value by leveraging
its collective strengths and internal and external
expertise, as well as engaging in co-creation with
our stakeholders.
Our company creed of “Fairness, Innovation,and Harmony” shares connections to the key wordsof sustainable business activities, even modern times.
“Fairness” links to human rights and fairness,“Innovation” to innovation and challenge, and“Harmony” to respect for diversity and harmony withsociety and the planet. The Marubeni Group willcontinue on its journey of value creation, steered bythese constant guides.

04Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

05

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

History of Value Creation
The Marubeni Group has consistently supported the development of society and theeconomy through business development in tune with the latest needs,
while anticipating societal change.
Present-

1858Founded
Textile business

1950sBecoming a general
trading company
Expansion of business domains

Marubeni’s
founder
Chubei ItohMark from which
Marubeni company
name was derived

Founded165

years ago1858 Marubeni’s founder,
Chubei Itoh, began selling
Ohmi linen

New York subsidiary

1980s-

2000s-

Deepening of businessResource
investment

Non-resource
investment

Securing of natural
resource interests that led
to current green strategy

Development ofdiverse businesses toenhance resilience

Business evolution from trading tobusiness investment,
expansion of overseas operation
centered on the U.S.

Helena (U.S.)

Roy Hill iron mine (Australia)

Earnings base in
non-resource fields

1949 Marubeni Co., Ltd.
was established1951 First overseas subsidiaryestablished in New York1961 Non-textile sales exceeded
50% of total sales

1963 Received thermal power
plant equipment order from
Manila Electric Company in
the Philippines

Columbia Grain (U.S.)

Esperanza Copper Mine (Chile)1978 U.S.: Grain collection and export

2005 Indonesia: MUSI Pulp Project managementbusiness Columbia Grainestablished1987 U.S.: Acquired agri-input retailer
Helena1994- Start of initiatives in IPP business1996 Qatar: First shipment from Qatar
LNG project delivered

1996 Chile: Acquired interest in Los
Pelambres Copper Mine

1997- Start of initiatives in renewableenergy power generation business

MUSI Pulp Project (Indonesia)

interests acquired

2008 Chile: Acquired interest in Esperanza Copper Mine2011 U.S.: Invested in Westlake (now Nowlake),a used car retail financing business2012 Australia: Acquired equity stake in
Roy Hill Iron Ore Project2013 U.S.: Invested in Aircastle, an aircraft
leasing company

2013 U.S.: Acquired Gavilon, a grain andfertilizer wholesaler

Creekstone (U.S.)

Aircastle (U.S.)

Next Generation Business
Development Division(Skeleton (Estonia))

Adubos Real (Brazil)

Nowlake (U.S.)

The beginning of
Marubeni's strengths

Track record andcompetitivenessin the U.S.

Pursuit of higher corporate value
by staying one step ahead of changes
in the environment and society

2017 U.S.: Acquired Creekstone, a beef processor
2019 Next Generation Business Development Division established2019 Brazil: Invested in Adubos Real, an agri-input distributor
2020 U.S.: Made additional investment in Aircastle,
an aircraft leasing company

2022 Next Generation Corporate Development Division established2022 U.S.: Sold Gavilon’s grain businessBusiness Progress2018 Disclosed policy to pull out of coal-fired power generation
2019 Identified materiality, adopted TCFD recommendations
2019 Created Business Policies SPP(enhancing investment discipline)

2020 Net loss booked on large impairment losses (FYE 3/2020)
Removed the risk of future large impairment losses

2021 Disclosed Long-Term Vision on Climate Change
2022 Disclosed Green Strategy
2023 Achieved record-high profit for a second straight year (FYE 3/2023)

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

06

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Having stepped up our financial foundation andearnings base, we will continue to create newvalue through innovative solutions for customers
and for the world.
Marketcapitalization¥

1.2 trillion¥

3.0 trillion(As of March 31, 2023)

2.5 x

FYE 3/2023

Earnings Base

Highest everFinancial Foundation

Strongest everSuccessful results frominitiatives that reflected losses(As of March 31, 2013)

Rebuild and Strengthen Our
Financial Foundation
Completed Write-downs of
Assets Concerned, Solidified
Earnings Base
Enhancing Investment Discipline

1.80

543.0
ROE

22%

424.3
ROE

210.9
17%
Large
impairment
losses2015.32016.32017.32018.32019.32020.3

Consolidated net profit (Billions of yen)
Net DE ratio (Times)(197.5)

Sustain and improve
cash generation

Reduce costof equity

Sustain andimprove ROE

0.83

ROE

Further advance strategies toimprove corporate value overthe medium and long terms

23%

Record-high profit for
two consecutive years

2014.3A corporate group that isproudly committed to socialand economic development
and safeguarding the global
environment

P.09 Initiatives to Improve Corporate Value Over
the Medium and Long term

0.52

2021.32022.32023.3

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Marubeni’s Accumulated Strengths01

Earnings Base in
Non-Resource Fields• Increase level of profit in non-resource fields by strengthening
existing business domains• Aim for profit growth over the medium and long term driven by
non-resource fields while continuing to reinforce each business

320.0
296.0

Adjusted Net Profit for Non-Resource Fields*

by executing strategies(Billions of yen)

186.0

197.0
172.0

163.0

178.0

Initiatives to reinforce existing business domains

2017.3

th
row
g
t
fi
pro
m
r
e
g-t
lon
d
- an
um
i
d
me
Strengthening of earnings base
get
r
a
T

2018.32019.32020.32021.3Acquired the ability to generate¥250-300 billion in earnings
annually in non-resource fields
Solidified consolidated earnings
base at ¥400 billion

2022.32023.3* Adjusted Net Profit: Net profit excluding one-time items (approximate figure)07

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

08

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

02

C

A

Railcar leasing business

Processing and sales ofpremium box beef

Sales of agri-inputs(Midwest Railcar Corporation)(Helena Agri-Enterprises)(Creekstone Farms Premium Beef)

Leasing and rental ofrefrigerated trailers(PLM Fleet)

Origination, storage,
export and domestic
sale of grains

Competitivenessin the U.S.

Aircraft leasing business(Aircastle)(Columbia Grain International)

Aircraft parts
trading business• More than 70 years of business experience in the U.S.

(Magellan Aviation Group)

Trading of natural gas andpetroleum products(MIECO)• Developed highly competitive businesses, U.S. generates
approx. 30% of profit (fiscal year ended March 31, 2023)

B

Fertilizer wholesale

Used car retail financing• Increase profit pillars with growth potential anddownside resilience, strongly rooted in massive domestic(MacroSource)(Nowlake Technology)

Conveyor belt
distribution business

Exploration,
development, production
and sales of oil andnatural gas resources(Viacore Solutions)(Marubeni Oil & Gas (USA))demand in the U.S.

Automotive
aftermarket business(XL Parts)(The Parts House)

Marubeni America Corporation
Branch offices
Subsidiaries and affiliates

A

Helena Agri-Enterprises
U.S. No.

2agri-inputs retailer

P.27 01 Food & Agri: Helena Agri-Enterprises

B

Nowlake Technology

third

The
-largest used-car finance provider
and the first among nonbank lenders in the U.S.
P.30 03 Finance, Leasing: Nowlake Technology

Profit attributable to owners of the parent
for fiscal year ended March 31, 2023

¥ 47.0 billion

Profit attributable to owners of the parent
for fiscal year ended March 31, 2023

¥ 29.6 billion

C

Creekstone Farms Premium Beef
Beef packer with an establishedpremium beef brandP.29 02 Food & Agri: Creekstone Farms Premium Beef

Profit attributable to owners of the parent
for fiscal year ended March 31, 2023

¥ 12.5 billion

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

09

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Initiatives to Improve Corporate Value over the Medium and Long Term
Aiming to improve corporate value over the medium and long term, Marubeni takes steps to sustain and improve cash generation, sustain and improve ROE,
and reduce the cost of equity. By devising and advancing measures and strategies with this in mind, Marubeni has made steady progress on these fronts.
Aiming even higher, Marubeni is keen to take bold measures in the future.

Strengthening existing business domains
Creation of new business models

P.26

Initiatives toCreate Value
P.27

Asset upgrades/recycling

P.40

Continuous strengtheningof earnings baseBusiness Policies SPP and Marubeni Group Governance

P.38

Strategic capital allocation

Business Investment Process

P.39

HR Strategy

P.41

DX Strategy

P.49

Sustainability for the Marubeni Group

P.57

Shareholder returns policy

P.53

Credit rating upgrades

P.53

Corporate governance

P.68

Risk management

P.65

Sustain and improve cash generation
Sustain and improve ROE

Improve capital efficiency
P.24 02 Realizing Value Creation Section

Optimize financial leverage
Reduce performance volatility

P52. 03 Initiatives for More Sustainable
Value Creation Section

Improve corporate
value overthe medium andlong term

Reduce cost of equity

Improve non-financial value

Value Creation Story
Mid-Term Management Strategy GC2024
Green Strategy

Maximizing the Corporate Value

P.15
P.18-19
P.21

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Message from the President & CEO

Enhancing long term corporate
value through continuousrefinement of our superiorbusiness portfolio
Masumi Kakinoki
President & CEO

10

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Aiming to become a growing conglomerateby being lean and nimble in these rapidlychanging times

of information has become even more important. By leveraging

grateful. We have received numerous comments fromhigh-quality information in our daily decision-making andshareholders and investors, praising Marubeni for stepping

refining our portfolio, I believe we can achieve growth thatup as a corporation and making steady progress on whatsurpasses the macroeconomy. Furthermore, being involved inneeds to be done.

In this world of discontinuity and uncertainty, the Marubeni

various businesses provides us with a network spanning a

In the past, Marubeni posted substantial impairment

Group aims to be an “essential partner that continually bridges

wide range of sectors and regions. This offers the advantage

losses that not only damaged its financial foundation but also

gaps in society.” As a general trading company, one strength ofof being able to tie up with optimal partners when embarking

compelled management to prioritize debt repayment over

the Marubeni Group is being able to work on anything without

on new ventures. One good example of this is being able to

growth investments, setting back the Company’s progress byregard to business domain or type of product. In times whenenter into new business areas like new energy by collaborating

several years as growth slowed. However, when it posted

the outlook is indiscernible, we see opportunities to thrive.

with existing partners.

significant impairment losses in the fiscal year ended March

In every era, the Marubeni Group has adapted and expanded

Leveraging the unique strengths inherent to general

31, 2020, Marubeni removed the significant risk of future

its role, continuously addressing the challenges of each time.

trading companies, Marubeni aims to create value by

impairment losses. And, by successfully enhancing earnings

This embodies our mission as a corporation and is the reason

contributing to solutions for the various challenges faced

capacity at the same time, we were able to realize a substantial

why Marubeni has built a history of 165 years. In the 20thby society and customers. In doing so, we are able toincrease in profits. As explained later, we have also internallycentury, we bridged geographical gaps through trade. Since theachieve medium- to long-term profit growth. The cash

strengthened our investment discipline. Looking ahead,

beginning of the 21st century, we have been filling the gap

generated from these endeavors is then reinvested inwithout relapsing into impairment losses, the Company is keen

between future value and present value through investment.

further growth and/or returned to our shareholders. This is theto raise the level of profits over the longer run by consistently

Looking ahead, our role will be to fill the gap by creating newcore business model of a general trading company, and theenhancing its earnings capacity.

value in a world that is constantly changing and difficult to predict.

ideal we strive towards. On the flip side, narrowing our focus

With an eye on medium- to long-term profit growth,

It is often said that general trading companies have a

too much by selection and concentration might leave

Marubeni’s basic investment strategy revolves around allocating

conglomerate discount in evaluations of their corporate value

Marubeni vulnerable to being swayed one-sidedly byfunds for growth investments in business domains where it has

due to the complexity of managing diverse and wide-ranging

unforeseen events. Instead of narrowing down too much,a competitive advantage, primarily in non-resource fields, withbusinesses. However, I believe we have a unique strength

Marubeni is keen to assemble a group of lean businesses

the intention of strengthening its existing business domains.

precisely because of our engagement in such a wide range ofwhile maintaining a broad portfolio.

businesses. Firstly, Marubeni can adjust its business portfolio
to fit better with the needs of society and customers. We canselect business domains that align with the needs of society

A Portfolio for Medium- to Long-Term
Profit Growthand customers from around the world, and also businessdomains where we have knowledge and experience, giving us

The Marubeni Group achieved record-high profits for two

a good chance of success. In these business domains,consecutive years in the fiscal years ended March 31, 2022,

we can also selectively choose the most promising investment

and 2023. As discussed in more detail later, the sale of the grain

opportunities. Moreover, our information-gathering capabilities

business of Gavilon Agriculture Investment, Inc. allowed

are a major strength. The up-to-date information continuously

Marubeni to significantly reinforce its financial foundation andflowing in from our operations worldwide is an incredibly

thus enabled us to enhance shareholder returns. These majorvaluable asset. While recent advancements in digital technology

achievements would not have been possible without theare said to have eliminated information disparity, I feel the quality

employees of the Marubeni Group, to whom I am deeply

11

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

It was our steadfast efforts to reinforce individual businesses

solving issues related to sustainability across all industries,

businesses that have not enhanced its corporate value.

that led to record-high profits, and we will boldly continue withhelping society and customers, and propelling the Marubeni

In October 2022, management made the bold decision to sell

these efforts. Not only have we reinforced traditionally strong

Group forward. We aim to become a forerunner in Green

the grain business of Gavilon Agriculture Investment, Inc.,

businesses like the Food & Agri Business and the Power &Business by working with all our stakeholders to realize thewhich brought back in approximately ¥330 billion.

Infrastructure Project, over the past few years we have alsointernational community’s goal of a society in harmony withexpanded the business domains where we have strengths tonature. Over a year has passed since the launch of GC2024,

grains within the U.S. When it acquired the business,

include transportation machinery, fleet management, andand each business division has clarified what they will

Marubeni aimed to create synergies with its grain trading

trading. This is a major win from the perspective of increasing

specifically promote under the Green Strategy. Steadybusiness with foreign countries, especially China. However,

our sustained growth potential.

This business primarily entailed amassing and selling

progress is being made. In December 2022, the Akita

these synergies did not materialize as anticipated.

Initiatives to Create Value P.27-

Offshore Wind Project, Japan’s first large-scale offshore wind

We examined ways to increase value added by venturing into

Within the Company, I am constantly cautioning against

farm, began operating commercially. Additionally, in Marchgrain processing and production, but these markets are

becoming complacent with our current business position

2023, progress was made on other fronts, such as thefiercely competitive. Given our limited experience, we came

because we are profitable now. The world is changing at ansigning of a long-term water sales agreement for the water

to the conclusion that it was not a wise use of major capitalincredible speed, and there is the possibility that the global

production and transportation project for Corporación

outlays. Ultimately, the returns on this investment did notsituation or the demands of our customers might change

Nacional del Cobre de Chile.

meet our initial projections. Moreover, operating the businessdramatically one day. For Marubeni to continue growing in therequired significant working capital and human resources,

medium to long term, we must always be sensitive to change

making it inefficient. Amid these circumstances, grain prices

and continually imagine the type of demand that our customers

began rising a few years ago, and a company interested inor potential customers will have. This might not always alignU.S. grain collection offered us terms that met our interest.

with the trajectory of our existing business and organizational

We saw this as the optimal time to sell the business, culminating

structure. This is why it is vital to simultaneously maintain andin the agreement. Considering the final sale price, I believe
Marubeni broke even on the whole, but the time and human

expand existing business domains while also being always on
the ready for creating new business models.

In front of the Akita Offshore Wind Project

capital expended cannot be reclaimed.
Lessons like this are shared extensively within the Com-To seize opportunities for new business, we must

By fostering a collective consciousness of sustainability

always be tuned into what is expected of us. A prime

throughout the Group, we believe the quality of what wepany, and even incorporated into internal systems. When it

example of this is sustainability. The act of monitoring andprovide will improve. Moreover, as our customers’ andacquired Gavilon for close to ¥300 billion (including thehelping solve issues of high priority to society is becoming

suppliers’ perception and assessment of Marubeni becomes

fertilizer business), Marubeni’s annual net profit was aroundfundamental to all businesses, such as decarbonization,

rooted in green values, we believe they will come to view us¥200 billion. In retrospect, I believe it was a venture beyond

the transition to a circular economy, the protection of

as a reliable partner they can conduct business with.

our means. Companies should always aim for growth andwater resources and bio-diversity, the promotion of humanrights, and building sustainable supply chains. In the
GC2024 Mid-Term Management Strategy, Marubeni has

While drawing on past lessons, we will not
halt our progress toward growth.

maintain an enterprising spirit, but investments that might
endanger a company’s foundation if they turn sour should be
avoided. I believe this investment discipline should be upheldeven when management changes, so we have modified ourdefined its approach to sustainability management as its“Green Strategy.” This strategy goes beyond strengthening

When I was talking about the advantages of a general tradinginternal approval processes so that large-scale investments

businesses that directly contribute to sustainability andcompany, I did not intend to refute the principle of selection

must pass muster. A system has been put in place to prevent

new investments. It calls for “greening” as a means ofand concentration. Marubeni is actively recycling assets ininvestments in early-stage projects from being prematurely

12

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

greenlit by an eager CEO willing to bypass the approval

In the fiscal year ended March 31, 2020, Marubeni

process. Even if the CEO is keen on a project, a decision

posted a net loss due to significant impairment losses,

to enhance shareholder returns. We feel that this is thecannot be finalized solely on that enthusiasm. The majority ofwhich resulted in a decrease in shareholders’ equity.

best shareholder return policy that Marubeni can currently

members on the Board of Directors are outside directors, andConsequently, management prioritized the rebuilding andoffer to our shareholders, who have been concerned by thelarge investments above a certain amount cannot movestrengthening of our financial foundation. Thereafter,

impairment losses and net losses in the recent past.

forward without the Board’s approval.

however, as I mentioned earlier, we were able to significantly

However, we are not satisfied with this level of shareholder

Of course, as the Company’s scale and profit levels

improve both our earnings base and financial foundation.

returns. Marubeni aims to increase dividends by realizing

have grown, investments might be larger than in the past.

In light of these achievements, we held dialogues withprofit growth, and, by growing profit even more over theHistorically, more so than large investments, Marubeni has

shareholders, investors, and analysts while exploring the

medium and long term, management is keen to raise thetended to flourish by making medium-sized investments inbest shareholder return policy for Marubeni and ourlevel of shareholder returns higher.

a range of tens of billions of yen that are competitively

shareholders. The outcome was the new shareholder

nourished with hands-on involvement. We plan to continue

return policy announced in February.

emphasizing this approach.
While the lessons from past investment failures have

The Company’s new shareholder return policy isfundamentally about providing a steady dividend andThrough these measures, management has been able

Strengthening initiatives in human capital,
aiming for an organization where diverse
talents work together

permeated even to our employees on the front lines,

aiming to increase dividends through medium- to long-term

excessive caution can also be counterproductive. Growth

profit growth. On this basis, during GC2024, Marubeni has

Amid significant changes, such as decarbonization, digital

investments are vital. Now that such lessons have been

decided to distribute a progressive dividend (i.e., no reduction

technology, the rise of the next generation of consumers, andfirmly ingrained in our mindset and approach to disciplined

in dividends regardless of earnings) until the fiscal year ending

diversifying values, the challenges faced by Marubeni areinvestment within Marubeni, my internal messaging now

March 31, 2025, and at the same time, target a total payout

becoming increasingly complex. It is increasingly important toemphasizes the implementation of growth strategies andratio of around 30%-35%. With this in mind, the Company

cultivate and support the activities of human capital to drive

taking challenges geared towards creating new businesstakes a flexible approach to share buybacks.

our business strategy forward. At Marubeni, we need to

The decision to introduce a progressive dividend was

expand the capabilities and breadth of our human capital torobust data analysis and meticulous planning for the future.

carefully thought out. If we misjudge the Company’s earnings

the fullest, not just focusing on HR development or optimal

As the president, I will act decisively and fully support thecapacity when determining the baseline for progressive

placement, but also on improving engagement, ensuring

projects we undertake after thorough discussions.

dividends, the Company may end up paying a dividend

diversity, and changing work styles as longer-term themes.

disproportionate to profit levels in the event of a sharp

This is not merely about managing employees. It is about

decrease in profits, which could potentially be detrimental

management understanding the multifaceted and changing

to Marubeni’s corporate value. On the other hand, as ofnature of our human capital, and building human capital that

February 2023, we thought about switching to a progressive

can maximize its potential in driving business strategy forward.

Until February 2023, Marubeni’s dividend policy was to set

dividend, without reducing the dividend, and maintain a

In the fiscal year ending March 31, 2024, the Company createddividend amounts based on annual profits, while specificallydividend of ¥78 per share forecast for the fiscal year ended

the position of Chief Human Resources Officer (CHRO) totargeting a consolidated dividend payout ratio of 25% orMarch 31, 2023. While ¥78 per share was our highest-everformulate and promote an HR strategy that contributes to themore. Also, the Company did not conduct share buybacks

dividend, after careful consideration, we concluded thatmanagement strategy. We are reinforcing our efforts so that

until the fiscal year ended March 31, 2022. This was because

Marubeni’s current earnings capacity has sufficiently increased,

our human capital, the most significant capital and driving

the scale of shareholders’ equity had not been large enoughand we ultimately decided to set that amount as the starting

force behind value creation for the Marubeni Group, can put

in the past.

point for the progressive dividend.

all of its efforts into executing our business strategy.

opportunities. Investment decisions should be based on

New Shareholder Return Policy Decided inLight of Market Expectations

13

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

14

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

To resiliently respond to changes in the business

Management also places importance on having

executive compensation system at this year’s General Meeting

environment, we believe it is essential to secure and leverage

dialogues with employees. Since opportunities are limitedof Shareholders, which was approved. By adopting relative

the diversity of our human capital. For the Marubeni Group,for direct conversations, I encourage communication

Total Shareholder Returns (TSR) as one of the evaluation

which is proud to have 46,000 employees worldwide, diversity

through Opinion Box. Using Opinion Box, I can relay mymetrics for executives, which compares our total shareholder

is especially important. Diversity encompasses various

own video messages about important management topics

returns to stock market performance, we believe the foundation

aspects of life, such as gender, age, life stage, nationality,

to Group employees, including employees at consolidated

for improving corporate value has been reinforced.

race, social, religious, and cultural backgrounds, andsubsidiaries, and directly respond to all feedback anddisabilities. Marubeni aims to be a group of companies

questions from employees. Since my appointment asGroup is proudly committed to social and economic

where everyone respects and admires colleagues of different

president in 2019, I have personally responded to aboutdevelopment and safeguarding the global environment bybackgrounds, and anyone with the skills and motivation is

1,200 queries over approximately four years. Employees

conducting fair and upright corporate activities. This is an

given opportunities to rise to new challenges. In 2022,

attentively view the content of these videos, and they quickly

everlasting philosophy for Marubeni. While a simple mission,

Marubeni declared its intent to focus on long-term growth

point out any incomplete responses. While no company may

simplicity does not mean it is easy. Given the world’s

opportunities for women through the “Female Empowerment

be perfect, I think that most people would prefer to work in a

increasingly complex and diverse challenges, what we canat Work 2.0” initiative. Furthermore, we would like to create

place where they feel that they receive and understandaccomplish solely on our own is limited. The Marubeni

a workplace environment where anyone regardless of age

explanations, and this might increase their motivation toGroup has adopted “Global crossvalue platform” as its

can enthusiastically work together, such as by training andwork harder. I therefore sense there is meaning in directly

vision. Even if the contribution of one individual might

encouraging young employees, as well as seniors. Marubeni

responding to questions from employees, and will continue

seem small, when the capabilities of various professionals

aims for an organization where diverse talents intermingle

to do so with the belief that it is a thread of communication

are marshalled together, most problems can be solved.

and work together to address conflicting propositions, suchwith employees.

This is the future that Marubeni envisions: “Share theas stability vs. growth and caution vs. boldness.

Pursuing higher corporate value throughco-creation with all stakeholders

Our corporate philosophy states that the Marubeni

challenge.” I am confident that by collaborating withstakeholders worldwide, even the most daunting challenges
can be overcome.
Compared to its past, when shoring up the financial

The fiscal year ended March 31, 2023, the first year offoundation was a challenge and we could not take all the

GC2024, was a fantastic year marked not only by a second

actions toward adequate growth that we wanted to, Marubeni

consecutive year of record-high profit but also by the

now enjoys a much greater degree of management freedom

Company’s share price reaching an all-time high. As weand strength. Standing on a new stage, the Marubeni Group

entered the fiscal year ending March 31, 2024, amid theis focused on raising its share price and TSR and building

robust Japanese stock market, the Company’s share pricecorporate value over the medium and long term by seeking tocontinued to rise, setting new historical records one after

address societal issues in partnership with all stakeholders,the other. I am deeply grateful to the investors that view

whether individuals, companies, or other entities, and to

Marubeni in such a positive light, and I am keenly aware ofcreate value.

the high expectations set by our shareholders.
In pursuit of further growth in corporate value, we see theAugust 2023

importance of aligning our position more closely with that ofMasumi Kakinoki

shareholders. As such, we proposed a major revision to the

President & CEO

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

15

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Value Creation Story
Realizing our future vision
Management Philosophy

Our Vision

In accordance with the spirit grounded in“Fairness, Innovation, and Harmony,” the Marubeni Groupis proudly committed to social and economic development

Environmental &Social Materiality

Strengthening
Drivers ofexisting business
Value Creation
domains

Creation of
new businessmodelsfair and upright corporate activities.

P.58

Creating New Value
with Stakeholders

Continuous investment for growthand safeguarding the global environment by conducting

Customers
and business
partners

ClimateChangeCreating value throughShareholders
and investors

Asset upgrades/
recycling

Sustainable
Forestrycustomers and for the world

Share the challenge

Employees

Human Capital withHigh Social Value

The Foundations for
Value Creation
Fundamental Materiality

Green Strategy

Governance for Coexistencewith Society

National/local
governments

Company Creed

Fairness, Innovation, and Harmony

Creationof Value

Local
communities

P.21

Robust Management
Foundation

Economic
Value

innovative solutions for our

Futuregenerations

Human Rights &Co-developmentwith Communities

Environmental
and Social Value

Sustainable &Resilient Value
ChainsThe Marubeni Group is focused on strengthening our existing businesses; creating new
business models; and upgrading and recycling assets. By thus pursuing economic value

Business Environment

and at the same time environmental and social value, we will create value in the spirit of

Global Changes and Major Trends

our management philosophy: the Marubeni Group is proudly committed to social andShifting values
Financial normalization

Digitalization

Geopolitical risks

Demands for ESG management

economic development and safeguarding the global environment.
In line with our vision of creating a Global crossvalue platform, we will treat the Group
as a single platform where internal and external expertise cross-fertilize with multiple

Concurrent Opportunities and Threatsother ingredients in infinite combinations to generate new value.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

16

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Management CapitalIn the 165 years since its establishment, the Marubeni Group has created value by contributing to the resolution of social issues, adjusting and expanding
its role with the changing times. We will continue to strengthen the management capital built up in our involvement and investment as a general trading
company in a wide range of industries and regions, leveraging these assets for still greater value creation.
Overview

External capitalInternal capital

Human Capital

Financial Foundation

Our greatest management capital and the engine behindvalue creation. Continue to develop the human capitalfoundation to drive business activity.

Maintain a stable financial foundation and support
business operations by ensuring appropriate capital
allocation and balance sheet management and bystrengthening profitability.

Business Portfolio

Well-balanced portfolio with many highly competitive
businesses and the majority of profit earned in non-resource
fields. Continue to strengthen the portfolio throughongoing growth investments and upgrading and recycling
existing assets.

Business Expertise

Sales Foundation
and Network

Natural Resources

FYE 3/2023 Overview
No. of Group employees (Consolidated) Approx. 46,000
No. of employees (Non-Consolidated) 4,340

Participation rate of employees’ shareholding association 86.2%
Total assets ¥ 8 trillion

Shareholders’ equity ¥ 3 trillion
ROE 22%

Core operating CF ¥ 584.2 billion
No. of consolidated companies: 480

Ratio of net profit from non-resource fields: over 60%

Examples of Strengthening Measures
HR Strategy
Appointment of Chief Human
Resources Officer

P.41 HR Strategy

Female Empowerment at Work 2.0
Appropriate risk management andstronger investment discipline
Credit rating upgrades

P.53 Message from the CFO

Continuous strengtheningof profitability
Discussion of growth strategy by business domain
Strengthening Existing
Business Domains

P.26 Strengthening Existing Business Domains

Proportion of net profit from U.S. operations: approx. 30%

Monitoring of ROIC and other efficiency metrics,
PDCA cycle
P.39 Business Investment Process

Advanced business expertise accumulated in businessactivities across diverse fields. Co-create value by
combining expertise with the knowledge of customers
and partners to generate solutions.

165 th anniversary of establishment
16 business segments

Cross-departmental initiatives targeting new business domains

Relationships of trust built up with many customers
and partners in a wide variety of sectors and regions.
This forms the foundation not only for conducting
routine business but also for launching initiatives innew business domains.

Relationships of trust with numerous customers,

Strengthening of networks through diverse business opportunities

partners, and suppliers worldwide

Building of relationships of trust with blue-chip partners

Over 70-year track record of business activity in U.S.

Building of sustainable and resilient value chains

Marubeni deals in metals, energy, food products,
forestry assets, and other natural resources. As well as
ensuring a stable supply of these resources, pursue
business opportunities arising from the trend toward
decarbonization.

Forest plantation: 130,000 hectares

Use of DX to accelerate growth strategy

P.49 DX Strategy

In-house sharing of unsuccessful measures

Green Strategy

P.21 Green Strategy

Net profit of Metals & Mineral Resources Div. ¥ 199.4 billion
Avoided emissions from renewable energy power generation:

The Marubeni Long-Term
Vision on Climate Change

P.60 Climate Change

approx. 1.12 million t-CO2

Sustainable Forest Management

P.62 Sustainable Forestry

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Message from the CSO

Drivers of value creation

Continuous
investment for growth

Strengthening
existing businessdomains

Creation of
new businessmodelsSteady Implementation of Strategy
Asset upgrades/
recycling

We place importance on discipline and precision when
making investments to ensure that growth investments
translate into profit expansion. To guarantee returns, we havecreated Business Policies SPP (see P.38) as a common set ofbasic principles for all business models. We prioritize growthinvestments that are needed in business strategies for realizing

Strengthening Our Existing BusinessDomains Bore Fruit in the Fiscal Year
Ended March 2023
Strengthening our existing business domains is where weplace the most emphasis. Of our investments in growth, we
allocate 80% to 90% of our management resources to thisKenichiro Oikawa

priority, throwing in the weight of the entire Group. We identify
competitive advantages in each individual business andSenior Managing Executive Officer

upgrade them through ongoing investments in growth. At theChief Strategy Officer (CSO);

same time, we are reinforcing competitiveness by aiming toRegional CEO for East Asia; Regional CEO for Japan Business;

expand revenue and asset scale, improve profitability, andVice Chairman of Investment and Credit Committee

reduce costs. Investing to further strengthen already strong

Initiatives for Medium- to Long-Term
Growth of Corporate Valuebusinesses has not only a high probability of success, butalso the added benefit of avoiding the premium paid when
acquiring new businesses. We also anticipate further
growth through expansion within the same business domain,

Strengthening our sustained earnings power is essential forhorizontal development in other regions, and diversification

the medium- to long-term improvement of our corporate

into adjacent business domains.

value. To this end, we are constantly working to strengthen

In the fiscal year ended March 31, 2023, Marubeni

our existing businesses domains and explore new businessachieved record-high profits for a second consecutive year.

models. While pursuing steady growth now and layering on

We believe this is the result of past investments in growth.

future-oriented initiatives, we are keen to develop and

Growth stood out in the food, agri business and financeestablish new pillars of earnings.

domains. The fruits of our consistent efforts in the past arealso evident in many other business domains.
P.26 Strengthening Existing Businesses Domains

the future vision set forth by each business division.
Marubeni is keen to steadily expand profits over the
medium and long term while adhering to this approach as anorganization, and also responding appropriately to change.

Deepening Business in the Domestic Market
While Marubeni has strengths in its business foundation for
the U.S. market overseas, we also view the domestic market
in Japan as vitally important. From my standpoint as Regional
CEO for Japan Business, I have been strengthening ourdomestic initiatives since 2020. In Japan, the world’s
third-largest market by GDP, there are plenty of new growthdomains being brought about by global trends and social
issues that are appearing in Japan before the rest of theworld, such as a declining birthrate and aging population.
We believe we can address diverse demand and contribute tosolving challenges by leveraging the expertise and talent wehave cultivated through various businesses over the years.
The outcome of our initiatives has already begun to appear infields such as the FemTech services business and regional
revitalization. We will continue to deepen our presence in eachexisting business while also advancing in multiple directions,developing new businesses, including through M&A, andforming partnerships with universities and local governments.

17

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

18

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Discontinuous changes and disruptions ofexisting business models will only accelerate

While working to strengthen and enhance our financial foundation, the focus
will be on Growth and Shareholder Returns

Rapid expansion of digital technology
Weaker international cooperation and concerns over geopolitical risks
End of ultra-easy monetary policy
Contribution to SDGs, rising demands for ESG management

Maximizing core operating CF
Maintaining positive FCF after shareholder distributions (three-year cumulative FCF,
excluding effects from changes in working capital)

Three years of putting strategy into practice[1] Develop and establish a stable earnings base by strengthening current
business domains and exploring new business models

Basic Policies

Reinforce/build Marubeni Group strengths in existing businesses (Horizon 1 & 2) while also
creating new business models (Horizon 3) in domains with high growth potential

Horizon 1
Improvementof existing
businesses

Horizon 2

Horizon 3

Pursuit of strategies
in existing businessdomains

Capital Allocation Policy

Characteristics ofBusiness Environment

Mid-Term Management Strategy GC2024 (April 2022 – March 2025)—Three Years of Putting Strategy into PracticeDivestment¥200.0 billion

Free cash

Core operating CF¥1,300.0 billion

ROE¥400.0 billion¥1,300.0 billion

15%

Pursuing long-term growth of corporate value
Sustain and improve cash
generation

Sustain and improve ROE

Reduce cost of equity

P.09 Initiatives to Improve Corporate Value over the Medium and Long Term

Shareholder Returns Policy

Marubeni Group
HR Strategy
Financial Targets(Three-year cumulative)

Enhancing the earnings baseby selectively investingin areas with high profitability based on
the company’s competitive advantages

New shareholder returns policy (announced Feb. 2023)
Previous policy

New policy

Basic dividend
policy· Link dividends to the Company’sbusiness results for each fiscal year

• Pay a stable dividend over the long term
• Increase dividends in response to medium- and long-term
profit growth

GC2024
shareholder
returns· Dividend payout ratio of “25% or more”· ¥60 per share to be set as the minimum
annual dividend· Flexible share buybacks• Progressive dividend policy*1 initially setting ¥78 per shareas an annual dividend• Flexible share buybacks conducted by targeting a total
payout ratio of around 30-35%

Marubeni HR Ecosystem(FYE 3/2025)¥800.0–900.0 billion

Horizon 1[2] Lead the transition to a Green economy by expanding “Green Business”
P.21 Green Strategy
and “Greening” in all business domains

Core operating CF

Horizon 2

New investments,
CAPEX¥1,000.0 billion

Multi-layered approach to “Growth” to enhance corporate value

Consolidated net profit

Investing in core businesses of the
future. Targets to be rigorously selected

Appropriate Cash
Allocation
Maximize Core
Operating CF

P.41 HR Strategy¥100.0–200.0 billion
Horizon 3

New business models andPromoting the growth and success of the Marubeni Group’s
human capital, the critical source of our corporate value

retained for future investment, etc.

Shareholder
distributions

White Space

unapproached business domains

Allocated to new investments, share buybacks or

Adopt a progressive dividend policy aiming to pay a stable dividend over the long term
Continue to strive for medium- to long-term profit growth and improvement of TSR*2
through optimal capital allocation and strategy implementation*1. Progressive dividend policy: No reduction in dividends, but maintenance or increase of dividends.
*2. Total Shareholder Return: (Capital gains + Dividends) / Purchase price (Invested amount).

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

19

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Progress of Mid-Term Management Strategy GC2024 (FYE 3/2023 performance)
Sustain and improve cash generation

Capital allocation

Adjusted net profit* in the year ended March 2023 set a new record of ¥526.0 billion.
We benefited from increased opportunities to profit from rising prices and our functions as a
trading company due to the impact of the COVID-19 pandemic and the Russia-Ukraine
situation. Disregarding these and other tailwinds in the operating environment, we believe
underlying net profit to be around ¥400.0-450.0 billion.
Going forward, we will focus capital allocation on existing business domains where we enjoy
a competitive advantage, mainly in non-resource fields, enabling us to maintain a solid
earnings base at the ¥400.0 billion level during the GC2024 period and continue with efforts
to reinforce profitability.

In October 2022, we completed the sale of Gavilon’s grain business, which was not includedin GC2024, recovering approximately ¥330.0 billion. Additionally, there is significant potential
to improve on the initial GC2024 target for core operating cash flow of ¥1.3 trillion over three
years. The resulting growth in free cash will further enhance management’s freedom of action.
In February 2023, we announced a new shareholder returns policy.
During the GC2024 period, free cash will be used to repay a certain level of debt, with therest allocated to growth investment and enhancing shareholder returns.

* Adjusted net profit: Net profit excluding one-time items, shown in an approximate figure.

Adjusted net profit

Non-resources

Resources

GC2024 three-year cumulative capital allocation (excluding changes in working capital, etc.)

Consolidated total(Billions of yen)(Billions of yen)

Financial Targets

440.0
199.0

e
ings basen earntionuceStrengthxestrategy
through
420.0

162.0

321.0

Underlying
net profit
400.0~
450.0

Core operating CF
Adjusted net profit(Billions of yen)

ROE
Net DE ratio(announced on Feb. 2022)

Divestment
200.0

Free cash

Core operatingCF
1,300.0

FYE 3/2025
targetFYE 3/2024 forecast

Three-year cumulative
1,300.0

526.0

440.0

420.0

22%

Approx.15%

15%

0.52 times

Approx. 0.6–0.7 times

Approx. 0.6–0.7 times* Based on FYE 3/2024 organization. Figures for FYE 3/2023 have been reclassified.

New investments,
CAPEX and others

FYE 3/2025 (GC2024 targets)

510.0

Sale of Gavilon’s
grain business
330.0

Cash In

Free cash

Divestment
200.0
Shareholder
distributions

Core operatingCF
1,300.0

1,000.0

584.2

Current outlook

Shareholder
distributions

270.0

FYE 3/2024
forecast

FYE 3/2023 results(Billions of yen)

150.0

277.0

FYE 3/2023*

Initial plan
Capital Allocation Policy

526.0

Cash OutNet DE ratio: 0.7–0.8 times

FYE 3/2023
584.2
FYE 3/2024
forecast
510.0

Cash In

New investments,
CAPEX and others

1,000.0

Cash OutNet DE ratio: 0.6–0.7 times

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

20

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Performance by Business Group (FYE 3/2023)
Total assets(As of March 31, 2023)

Business Groups*

1

Consumer Products

Net Profit(Billions of yen)

Materials(Billions of yen)

133.6

41.6

Adjusted Net Profit*4

1,264.7

Consolidated total

600.0

Energy &Infrastructure Solution
Transportation &Industrial Machinery,
Financial Business
CDIO (Chief Digital
Innovation Officer)

543.0

526.0
145.2

424.3

95.0

420.0

Approx.
¥8.0 trillion

2,016.8

489.0

500.0

2,641.3

440.0

1,855.6

139.0

400.0

98.0

Others

98.0

135.4
300.0

No. of employees

221.0

204.2
193.0

(Consolidated) (As of March 31, 2023)

187.0

213.0

200.0

2,571

289
8,327

215.5
109.0

87.5
77.0

100.0

17.3
56.2
0.6
(7.0)

0
-50.0

95.8
15.0
(48.0)

3,329
71.0

69.0

80.0

95.0

72.0

(25.0)(3.0)

26,890

4,589

83.0

No. of employees

4.0
(3.0)

9.0
(3.0)

(4.0)
(1.0)

45,995(Non-Consolidated) (As of March 31, 2023)

782
2022.32023.32024.3(forecast) *2

2022.32023.32024.3(forecast) *2

Resources*3

197.5

190.4

168.0

197.0

199.0

162.0

Non-resources*3

226.9

342.4

280.0

296.0

320.0

277.0

(0)

10.2

(28.0)

(4.0)

7.0

1.0

Other*3

1,506
77
549

4,340

637
789

*1. Composition of Business Groups (based on FYE 3/2023 organization)
Consumer Products Group: Lifestyle Div., ICT Business & Logistics Div., Food Div.- I, Food Div.- II, Agri Business Div. / Materials Group: Forest Products Div. , Chemicals Div. , Metals & Mineral Resources Div. / Energy & Infrastructure Solution Group: Energy Div., Power Div.,
Infrastructure Project Div. / Transportation & Industrial Machinery, Financial Business Group: Aerospace & Ship Div., Finance, Leasing & Real Estate Business Div., Construction, Industrial Machinery & Mobility Div. / CDIO (Chief Digital Innovation Officer): Next Generation Business
Development Div., Next Generation Corporate Development Div.
P.100 Data by Operating Segment*2. From FYE 3/2024 the name of the ICT Business & Logistics Div. was changed to IT Solutions Div. Additionally, the following organizational transfers were carried out: transfer of parts of the Lifestyle Div. to the Finance, Leasing & Real Estate Business Div. and the Next Generation
Business Development Div., respectively; part of the ICT Business & Logistics Div. to the Next Generation Business Development Div.; part of the Energy Div. to the Power Div.; part of the Next Generation Business Development Div. to the Chemicals Div.; and part of the Other
segment to the IT Solutions Div.
*3. Classification by business field is as follows: Resources: Total of Energy Div. and Metals & Mineral Resources Div. excluding Steel Products Dept.; Other: Total of Next Generation Business Development Div., Next Generation Corporate Development Div., and Other; Non-resource:
All other than above.
*4. Adjusted net profit: net profit excluding one-time items, shown in an approximate figure. The totals of the various operating segments and Business Groups and the overall total may not match due to rounding.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Green Strategy
Aspiring to become a Forerunner in Green Business
Taking advantage of the high multiplier effect inherent in the diversity and breadth of the MarubeniGroup’s operations, we aim to build sustainability across all our supply chains. In this way, we aspire
to become a forerunner in Green business in realizing a sustainable society.
P.102 State of Major Green Business Initiatives
P.105 Major Progress in Greening All Business Domains

All Domains

Promote “Greening” initiatives across all other Marubeni Group business domains to reduce environmental impact,
support the transition to a circular economy, and build sustainable supply chains
Reducing negative impacts on the environment and contributing to the transition to a circular economy

Pursuit to be “Greener”

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

Green Businesses

Strengthen/expand current Green Business while creating new Green Business through cross-sectional approaches
and utilization of business connections

Creating new Green Business

Expanding Green Business

Decarbonization

Circular Economy
Water Resources
Bio-Diversity

based on the current business base, which is already strong and profitablethrough cross-sectional approaches andutilization of business connections

Horizon 1 & 2

Horizon 3

Renewable Energy

New Energy

Forestry

Copper, Aluminum

Decentralized Power, Battery Storage,
and Supply-Demand Adjustments

Decarbonization Solutions

Agri-Inputs

Water Infrastructure

Recycling of Materials and Resources

Eco-friendly Food Products* Green Business: Sustainable businesses which have positive effects on the environment such as decarbonization and the circular economy, and adjacent businesses which supply those businesses with non-substitutable materials, etc.

21

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Green Strategy

Goals of the Marubeni GroupThe “Green” that the Marubeni Group aims to achieve means that business activity should have a net positive impact on the global environment (nature positive) and promote the transition
to a decarbonized society and a circular economy in order to contribute to the international goal* of realizing a society living in harmony with nature. Concerted efforts to strengthen ourgreen businesses and advance greening in all business domains are steadily progressing everywhere at the front-line level, while we also work to strengthen our internal framework foradvancing the green strategy. To orient toward nature positive business activities, we will continue to reinforce and expand initiatives to address Environmental and Social Materiality.
P.58 The Material Issues for Sustainability (Materiality)

Decarbonization

Transition
to a Circular
EconomyLiving in Harmony with Nature

Marubeni Group
promotes throughout
the supply chain

Nature Positive(Net positive impact on the global environment)(Building a sustainable and resilient supply chain)

Respecting for Human Rights(Foundation of Corporate Activities)

Field-driven practiceDeveloping Green Strategy in each business division,and specifying targets and directions of initiatives underfield leadership.

Each employee fully embraces andinternalizes the Green Strategy

Strengthen promotion structure
Establishment of New Energy Business Development Department
Development of a data platform for sustainability-related information
Establishment of support team for environmental credits

Accelerate promotion of Green Strategy* International goals of the Kunming-Montreal Global Biodiversity Framework
The 15th Conference of the Parties to the UN Convention on Biological Diversity (COP15) of December 2022 states its Nature Positive mission for the year 2030 as being “to take urgent action to halt and reverse biodiversity loss to put nature on a path to recovery.”The “Green” envisaged by the Marubeni Group aligns with the international goal for 2030 of becoming nature positive and the vision of living in harmony with nature by 2050.

22

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

23

Corporate Data

Values of the Marubeni Group / History of Value Creation / Marubeni’s Accumulated Strengths / Initiatives to Improve Corporate Value over the Medium and Long Term / Message from the President & CEO / Value Creation Story / Management Capital /Message from the CSO / Mid-Term Management Strategy GC2024 / Progress of Mid-Term Management Strategy GC2024 / Performance by Business Group / Green Strategy / Improving the Corporate Value of Marubeni from the Perspective of an Outside Director

Improving the Corporate Value of Marubeni
from the Perspective of an Outside Director
Marubeni’s Initiatives to Improve
Corporate Value
In its Mid-Term Management Strategy GC2024, Marubeni
has set its sights on improving corporate value over the
medium and long term by sustaining and improving cash
generation, ROE and the cost of equity, and has focused
efforts on improving return on capital and the cost of capital.
In addition to steadily advancing its growth strategy,

Yuri Okina
Outside Director

Ms. Okina has extensive experience in public office,including posts on the Financial System Council at
the Financial Services Agency and the Council of
New Form of Capitalism Realization at the Cabinet
Office. She has also served as a member of theCouncil of Experts Concerning the Follow-up ofMarket Restructuring at the Tokyo Stock Exchange

Marubeni has taken distinctive actions recently, such as
selling the grain business of Gavilon and stabilizing dividends
with a progressive dividend policy. Looking at the results,

With the aim of increasing corporate value, we are making
steady progress with measures to sustain and improve
cash generation and ROE and reduce the cost of equity.
By maintaining these efforts into the future, we envisage
further increases in stock price, TSR, and medium- tolong-term corporate value.
March 30, 2018–June 30, 2023
(Price movement based on value of 100 at March 30, 2018)
Marubeni stock price

TOPIX

500
400

I highly commend the Company for the considerable progress
made on improving its earnings power, ROE and credit ratingover these past few years.
Management is taking steps to clarify and improve

Management Aware of Cost of Capitaland Return on Capital

return on capital in each business by using ROIC and otherFor a company to achieve sustained growth and longer-term

workplace for the purpose of making improvements on a

improvement in corporate value, management needs to beCompanywide level.

more aware of the cost of capital and return on capital. With

Stock Price and TSR

indicators of efficiency. I believe management is taking anappropriate approach to instilling these important KPIs in the

Marubeni’s share price has also increased considerably

a firm understanding of the cost of capital at one’s own

as a result of these measures. While taking these initiatives tocompany, management is expected to take steps to realize

a deeper level, I hope that management will further lift growth

capital efficiency in excess of the cost of capital.

expectations by realizing profit growth over the longer term

300
200
100
0
2018.32019.32020.32021.32022.32023.3

Stock Price, TSR, PBRFYE 3/2021

FYE 3/2022

FYE 3/2023

Close¥920.8¥1,426.0¥1,795.5

High¥958.3¥1,507.0¥1,933.0

allocate business resources in an optimal way that creates

Low¥456.2¥842.0¥1,142.0

added value, while considering measures from multiple angles,

5-year TSR

such as ideal portfolios and business models, in addition to(including dividends; TOPIX)

188.9%(162.3%)236.5%(144.3%)264.6%(131.8%)reviewing existing assets, such as reducing low-efficiency

PBR

1.02

1.17

1.11

In order to increase capital efficiency, management must

assets. It is also important to invest in intangible assets, suchas human capital essential to advancing business strategy,
leverage digital technology to enhance competitiveness, andwork to improve sustainability.

and enhancing corporate value.

* TSR = Total shareholder return: (Capital gain from price increase + dividends) /Invested amount (share purchase price)* PBR = Price-to-book ratio: (Fiscal year-end (March) closing price) / (Assets
attributable to owners of the parent per share in relevant fiscal year)

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

24

Improvement ofCorporate Value

Sustain and
Improve Cash
Generation

Sustain and
Improve ROE

Reduce Cost of Equity

Realizing Value Creation
We explain the various measures we are taking aimed at sustaining and improving
cash generation and ROE in a bid to enhance corporate value, providing specificexamples of our initiatives.

25
26
27

SECTION

38
39
41
42
49
50
51

Value Creation Model
Strengthening Existing Business Domains
Initiatives to Create Value

27
29
30
31
32
33
34
35

01 Food & Agri: Helena Agri-Enterprises

36

09 Initiatives for the Next Generation (2):Next Generation Corporate Development Division

37

10 New Energy: Initiatives in New Energy

02 Food & Agri: Creekstone Farms Premium Beef
03 Finance, Leasing: Nowlake Technology
04 Finance, Leasing: Fleet Management Business in North America, Aircastle
05 Renewable Energy: Renewable Energy Generation Business
06 Resources: Metals Mining Business
07 Trade
08 Initiatives for the Next Generation (1):
Next Generation Business Development Division

Business Policies SPP and Marubeni Group Governance Policy
Business Investment Process
Message from the CAO
HR Strategy
Message from the CDIO
Marubeni’s System for Promoting Utilization of Digital Technology
Developing/Upgrading Our Digital Talent Base and IT Infrastructure

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

25

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Value Creation Model
We constantly refine our business portfolio through continuous investments for growth and upgrading and recycling of assets. Cash generated by our businesses
is reinvested for growth or allocated to shareholder returns with the aim of further driving profit growth and medium- to long-term corporate value enhancement.

Continuous strengtheningof business portfolio

Continuous investment for growth
Achieve steady profit growth by prioritizing investments in existing business domains
where Marubeni has competitive advantages and high profitability (Horizon 1 & 2).

Continuous investment
for growth

Strengthening
existing businessdomains

In addition, invest in new domains to develop core businesses for the future(Horizon 3), based on rigorous target selection.

Creation of
new businessmodelsHorizon 3

New business models and unapproached business domains

Horizon 2

Pursuit of strategies in existing
business domains

Horizon 1

Improvement ofexisting businesses

Enhance Corporate Value

Drivers ofvalue creation

P.26 Strengthening of Existing Business Domains

Asset upgrades/
recycling

Asset upgrades/recycling
By monitoring existing assets in each individual project and business, we seek toengineer improvements to contribute to greater capital efficiency.
P.39 Business Investment Process

Management CapitalInternal capital

External capital

Human capital

Sales foundation and network

Financial foundation

Natural resources

Business portfolio
Business expertise
P.16 Management CapitalStrengths of Marubeni Group
Accumulated strengths Earnings base in non-resource fields

Distribution/FinanceNetwork
Construction
Stable ProductSupplyCompetitiveness in the U.S. market

Business Development/
Management

Marketing

Project Management
Functions

Risk Management
Information Analysis/
Usage

Business Management Policies
Business Policies SPP

Group Governance Policy

Maximizing the value ofBetter management of

portfolio businesses

group companies

Trading
Comprehensive
Strengths

Business investment
Sector breadth
Worldwide regional
development

P.38 Business Policies SPP and Marubeni Group Governance Policy

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Strengthening Existing Business Domains
Marubeni emphasizes further strengthening and enhancing its existing businesses by allocating growth investments to the existing business domains
where it has competitiveness, mainly in the non-resource fields. Investment in existing strong business domains increases chances of success. It is also
expected to contribute to sustaining and improving cash generation and ROE.
This longstanding policy is a strong driver of our value creation.
Enhance competitive advantage through continuous

Enhance competitive advantages

growth investments, increase business valueCompetitive advantages are the source of added valueby scaling up sales volume and assets, improving

Realize high profitability and capital efficiency by improving
competitive advantages

profitability and reducing costs
Aim to further develop the strengthened businesses

Competitive advantages
Value added and functions appreciated bycustomers, cost competitiveness, stablesupply, effective risk management, trust, etc.

through expansion in the same business domains,
Scaling-up

Horizontal
expansion

horizontal expansion to other regions, extension toneighboring business domains, etc.

Improvementof profitability

Identify each business’s
competitive advantage
Upgradingthrough growthinvestment

Enhancementof competitive
advantage Reductionof costs

Existing
businesses
Scaling-up of sales volume and assets

We pursue profit growth and high ROE that outperformthe market
The generated cash is strategically re-allocated as
the whole Group’s management resource (growthinvestments, shareholder returns, internal reserves,etc.), and utilized for further enhancement of ourcorporate value.

Improvement of profitability

Reduction of unit cost26

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

01

Competitive Advantages

Food & Agri

Value added and functions appreciated by

Helena Agri-Enterprises

customers, cost competitiveness, reliablesupply, risk management, trust, etc.

U.S. No. 2 agri-inputs retailer
We develop and provide high-value-added services and products that meet customer needs.
We have grown alongside our customers, enhancing our competitive edge by continually improving.
We pursue further growth through continuous expansion of locations and market share.
Helena has grown considerably from the fiscal year ended March 31, 1988,
when Marubeni invested in a stake, up to the fiscal year ended March 31, 2023.
FYE 3/1988

FYE 3/2023

Approx.0.5 billion dollars

Approx. 7.0 billion dollars

Number of locations

Approx. 100

Approx. 500

Employees

Approx. 800

Approx. 6,000

Sales

Providing high-value-added products andservices from the viewpoint of customers“AGRIntelligence®” consulting service utilizing digital technology
Consulting service utilizing digital technology.
The AGRIntelligence program includes systems for collecting and analyzing soil data for agricultural
producers (customers) to select the most suitable agri-inputs for the customer.
Services include soil sample analysis, harvest yield measurement using satellite data, and measurementof nutrient levels in plants for providing seed and fertilizer recommendations, crop and cultivation history
management, water quality analysis and harvest analysis.

This is a reflection of the high regard and trust that Helena has earned by

Soil analysis

consistently engaging in dialogue with customers, understanding their challenges,
and collaboratively developing and providing solutions. Helena’s market share across

Yield analysis

Seed recommendations

Crop nutrition management

Fertilizer recommendations

Crop management

Cultivation history management

the U.S. currently stands at just under 10%. Helena will continue to pursue further
growth by expanding its locations through growth investments, increasing its market
share, and leveraging growth in sales of value-added products.

Water quality analysis

Proprietary product brand “Helena Products”
Helena provides high-quality products that meet the needs of agricultural producers through its own
development and manufacturing.
Helena has human capital with expertise in various areas, including
agronomy, chemistry and biology, and develops and markets its
proprietary brand of fertilizers and crop protection products.
In addition to selling agrichemicals, fertilizers and seeds, Helena provides
solutions to issues discovered in dialogue with customers, who are
agricultural producers. To do so, Helena designs product concepts andindependently develops products based on these concepts.

27

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value01

Food & Agri

Initiatives to Create Value at Helena

Helena’s U.S. network
2020s

Expanded U.S. locations to more than 500
Mid-2000s

Increased sales ratio of proprietary productbrands as customer evaluations improved
Beginning of 2000s

Launched AGRIntelligence®
After 2000

Increased handling of fertilizers andseeds while focusing on agrichemicals
1987

Distribution oflocations

1990s

Marubeni’s
acquisition

Manufacturing
Retailing
Wholesaling
Terminal
Aerial spraying

Began to handle proprietaryproduct brand “Helena Products”

Helena Sales(Billions of Number ofU.S. dollars) locations

10
9

1987
(time of investment)

100

Adubos Real:FYE 3/2008

300+

Cross-Deployment of Helena’s ModelFYE 3/2023

500+

For more than 40 years since its founding, Adubos Real
S.A. has contributed to improving the profits of local
farmers in the southeastern state of Minas Gerais in Brazil
through the sale of agri-inputs and consulting services forthese inputs.
After Marubeni’s equity participation, Adubos Real
S.A. has been executing investment plans in line with its
growth strategy, and continues to expand operations
into neighboring states, such as São Paulo and Espírito

8
7
6
5
4
3
2

Proprietaryproducts

1
0

.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
.3
07 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
20

Targets

Helena has expanded the number of locations through capital expenditures andacquisitions of small-and medium-sized competitors. As sales grew, Helena increased
sales of proprietary value-added products.

Santo. The expertise cultivated by Helena is being
leveraged in markets with high agricultural similarities
between the U.S. and Brazil.

28

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

29

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

02

Competitive Advantages

Food & Agri

Value added and functions appreciated by

Creekstone Farms Premium Beef

customers, cost competitiveness, reliablesupply, risk management, trust, etc.

U.S. beef packer with an established premium beef brand
Acquisition of highly acknowledged Creekstone premium beef brandExcellent plant operations by utilizing the Marubeni Group’s knowledge
and know-how, and quality improvements and production efficiency
gains from suitable capital investments
Further expansion of processing capacity by additional investment andreduction of production costs
Expanded business field in the premium beef category and conduct
effective marketing
Business domains

Acquisition of Creekstone in 2017

For steakhouses
and retailers

Business fields of CFPB

Creekstone Farms Premium Beef LLC operates its own meat processing plant in Kansas, U.S.,and sells this beef to high-end steak houses and retailers across the U.S. Creekstone’s beef

Cattle feeding

Selective
procurement

Harvesting/processing

Sales

comes exclusively from high-quality Black Angus cattle, which have been raised in the U.S., fed
on high-quality grains. Creekstone is supplying high-value-added products and executing abusiness model that draws on the know-how of the Marubeni Group.
Creekstone is operating an excellent plant, utilizing the Marubeni Group’s knowledge of themeat and livestock business. Additionally, in the cattle feeding business field, we are exploring
ways to further enhance value through the mutual dispatch of employees and exchange of

Net Profit / Number of Cattle Processed

information with Rangers Valley, our cattle fattening business in Australia.

Net profit (left scale)(Billions of yen)

Advancing Strategy with Additional Investments
Marubeni continues capital investment in expansion after the acquisition, increasing the

50
40

Number of cattle processed (right scale)(Thousands ofhead of cattle)

Strengthen competitiveness by
expanding number of processed cattle
and reducing production costs

1,000
800

number of cattle processed through additions to processing lines and building a new
distribution warehouse. We are also proactively investing in facilities that improve the work
environment and employee welfare, such as expanding wastewater treatment facilities atthe plant to help preserve the environment, upgrading air conditioning systems in work
areas, and opening childcare facilities for employees’ children.

30

other than beef.

448

20

288

297

339

0

20.5
9.5

10

We aim to further improve profitability through value-adding sales of by-products and offal

489

2.9

2.5

2018.32019.3

525

592

400

12.5

200

4.3
0
2020.32021.32022.32023.32024.3
Outlook

Marubeni’s acquisition

600

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

30

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

03

Competitive Advantages

Finance, Leasing

Value added and functions appreciated by

Nowlake Technology
Used car retail financing that utilizes digital technology

customers, cost competitiveness, reliablesupply, risk management, trust, etc.

Earning Asset and Profit on Equity Method
Earning asset (left scale)Profit on equity method (right scale)Nowlake Technology, LLC (Marubeni's ownership is 21.7%), which has headquarters in(Billions of dollars)(Billions of yen)

California, U.S, operates a used car retail financing business in all 50 states. Nowlake is

18

29.6

the third largest used-car finance provider and the first among nonbank lenders in the U.S.*
Nowlake has partnerships with more than 40,000 dealers nationwide and provides autoloans to used car buyers. Its unique credit scoring system, based on accumulation and12

Earning asset has reachedalmost 11 times that of 2011, when Marubeni
made its investment

30

15.8
20

analysis of huge historical data, allows it to provide loan approval/disapproval and terms
and conditions in a few seconds,

24 hours a day, 7 days a week. Frequent updates

to this system based on performance and adaption to changes in the business environment

6

10

0

0

enable advanced operations that optimize risk-return and develop Nowlake’s
competitive strengths.
Since Marubeni’s investment in 2011, Nowlake has provided approximately 3.5 million
auto loans, meeting the needs of numerous customers in the U.S., where automobiles are
essential to daily life. Nowlake will continue to explore new areas, such as expansion outside

2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 2022.3 2023.3

Marubeni investmentof the U.S. and diversifying the types of products, while aiming for further expansion offinancial assets through the utilization of digital technologies.

Dealership network, earning asset balance, number and amount of transactions· Number of dealerships exceed 40,000 in total for all 50 U.S. states· Earning asset balance: $15.8 billion*· Number of auto finance loan leads: approx. 7 million/year· Number and amount of loan originations: approx. 500,000/year, approx. $9.0 billion/year

In-house data analysis andautomated approval system
Nowlake has over 700 IT engineers who increase
efficiency in not only customer loan reviews,
but also in loan execution, debt collection andvehicle disposal processes by utilizing data
analysis and systems.
* As of March 31, 2023

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

31

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

04

Finance, Leasing

Fleet Management Businessin North America

Aircastle
Additional Investments to Accelerate Growth in Aircraft Leasing Business
Aircastle operates an aircraft leasing business with 73 airlines as customers in 44 countries

PLM Fleetworldwide. Since the joint acquisition of Aircastle by Marubeni and Mizuho Leasing Co., Ltd. in

Refrigerated trailer leasing and rental business(U.S., Marubeni's ownership is 50%)

March 2020, the business environment has been challenging due to factors such as the decline

PLM Fleet is the largest company specializing in the refrigerated trailer leasing and rental business in the
U.S. PLM Fleet has been expanding its asset scale and continuously increasing profits through trailer
leasing, rental and maintenance services, as well as temperature management and monitoring services.

to Russia due to the Russia-Ukraine situation. However, earnings have gradually improved asin passenger demand caused by the COVID-19 pandemic and the loss of some aircraft leased
passenger demand recovers.
In July 2023, Marubeni and Mizuho Leasing entered into an agreement for a joint capital

TDF Group

increase of $500 million to further accelerate the growth of Aircastle, providing funds for theCommercial vehicle rental/leasing and sales business(Canada, U.S., Marubeni's ownership is 46.1%)

purchase of aircraft, among other uses.

TDF Group has bases across Canada and has been engaged in the commercial vehicle rental, leasing,and sales business, with a focus on pickup trucks, for over 40 years. The company’s strengths lie in its
longstanding relationships built on trust with key customers, such as those in the natural resource andconstruction-related sectors. Recently, TDF Group has also been diversifying its customer base to include
the logistics and film industry. In 2021, the company expanded into the U.S. and aims to expand
business scale further.

Global passenger demand for air travel is projected to grow at an average annual rate of 3%
through 2040. Aircastle intends to contribute to decarbonization and lower carbon emissions in theworld by leasing to the airlines new technology aircraft that feature low environmental impact amid
strong customer demand.

Midwest Railcar Corporation

Non-Consolidated Pretax Profit of Aircastle

Railcar leasing, brokerage, and asset management business(U.S., Marubeni's ownership is 50%)

(Millions of dollars)

300

Midwest Railcar Corporation has been operating its railcar leasing business for over 25 years, with major
U.S. railroad companies, grain majors, chemical companies, and construction material companies as its
primary customers. To satisfy customer needs, the company has been increasing its railcars assets,
primarily in railcars that excel in versatility and durability. As of the fiscal year ended March 31, 2023,
it had approximately 25,000 railcars on an average annual basis.

200

PLM

TDF

Russia invades
Ukraine

100
0
-100

Steady Growth in Net Profit for Marubeni Groupas Assets Expanded at Three Companies(Billions of yen)

Global COVID-19
pandemic

Marubeni’s

MRC$200 million outof $500 million
capital increase(July 2023)

Marubeni’s
additional
investment-200 acquisition
-300

8

-400

6

2014.32015.32016.32017.32018.32019.32020.32021.32022.32023.342024.3
1Q

Portfolio Composition by Aircraft Type (as of end-February 2023)

2

Narrow-body02019.32020.32021.32022.32023.3* Marubeni's ownership in PLM was 100% until March 2020, and 50% thereafter.
* TDF and MRC show net profit of investment-purpose SPCs. TDF shows net profit of Marubeni Fuyo Auto Investment(Canada) and MRC shows net profit of Marubeni SuMiT Rail Transport.

Wide-body

Freighter

90%
Approx. 20% of narrow-body aircraft are new technology aircraft8%2%

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

05

Renewable Energy

Realized an Avoided Emissions ofApproximately 1.12 Million Tons of CO2 from
Renewable Energy Generation

Renewable Energy Generation Business
Aiming to create new value by leveraging accumulated expertise and networks• Since the 1990s, we have been engaged in renewable energy generation
business, leveraging the knowledge we have accumulated to develop a diverse
range of businesses.
• In addition to capturing profits from the power generation business, our businessmodel aims to enhance profitability by creating and offering value (including
environmental value) realized at the project development stage through partial
equity sales.

Engaging in value creation with accumulated strengths and new initiatives

2022: Acquired seabed leasing rights for the development of afloating offshore wind power generation project in Scotland
2020: Commenced construction of offshore wind farm projects at
A
Commenced
offshore windfarm projects
atAkita Port andconstruction
Noshiro Portof(completed
in 2023)
Akita Port and Noshiro Port (completed in 2023)
A
Offshore wind farm project at Akita
Port and Noshiro PortMarubeni is a leading player in the independent power producer (IPP) business, with a high level ofknowledge and trusted relationships with a wide range of customers, suppliers, and governments.
In the renewable energy power generation business, we are undertaking a variety of initiatives,
such as offshore wind power in Japan and the U.K., large-scale solar power in the Middle East,
small- to medium-sized hydroelectric power and biomass power in Japan, and decentralized
power generation through rooftop solar power for commercial and industrial customers overseas.

B
SmartestEnergy (U.K.)

Since 2020: Decentralized power generation business throughrooftop solar power for commercial and industrial
customers (in Mexico, Vietnam, Thailand, etc.)
Since 2017: Commenced development of large-scale solar power
projects in the Middle East
2019: Completed Sweihan photovoltaic independent power
project in the UAE
2022: Commenced power generation at the Al Kharsaah solar
PV IPP project in Qatar
2013-2021: Participated as a leader of an offshore wind power demonstration
project in Fukushima Prefecture

Additionally, we are actively involved in new renewable energy-related businesses thatleverage our strengths, such as handling renewable energy sourced electricity in our growing

Since 2001: Participated in retail business that includes aggregation of renewable energy
and handling of renewable energy sourced electricity

power retail business, and offering services related to renewable energy, like electric vehicles(EVs) that use these renewable energy sources, and the efficient use of transmission lines to2001: SmartestEnergy (U.K.) B , 2019: SEUS (U.S.), 2020: SEAU (Australia)

promote the introduction of renewable energy.
In the global trend toward decarbonization and low carbon emissions, Marubeni, in collaboration

2002: Participated in domestic power retail business2015: Established Marubeni Power Retail Corporation (Japan)

with other partners and suppliers, is in a position to make a variety of proposals to our trusted
customers, leveraging its cultivated domestic and international networks. We will continue toSince 2000: Engaged in numerous onshore wind, offshore wind, hydro, solar, geothermal,
and biomass power generation projects both in Japan and overseas

contribute to society and our customers through businesses that leverage these strengths.

1997: San Roque hydroelectric power project in the Philippines (completed in 2003)

Value creation from the project development stage using our expertise
One of our strengths is that we can lead projects from the early stages of development, using ouraccumulated knowledge and know-how, and create value as the project progresses. We aim to

1990

2000

2010

2020

improve profitability by incorporating the gains from partial equity sales into our business model.
Note: Avoided emissions are calculated based on the amount of power generated (net power output) of the major solar, wind, geothermal,hydro, and offshore wind power projects as of March 31, 2023, using the following formula: installed generation capacity × 24 hours
× 365 days × capacity factor (%) × the average emission factor of the country or region of location available x equity ratio (%)

32Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

06

Resources

Copper Mining Projects in Chile

Metals Mining Business

Joint development with partner Antofagasta PLC of the Centinela district, which has more thansix billion tons of resource deposits

Copper Mining Projects in Chile and Roy Hill Iron Ore Project in Australia

Expansion Strategy 1

Copper Mining Projects in Chile

Centinela Expansion Project

Portfolio of Base Metals Likely to See Demand
Our metals business portfolio is composed of copper, ironore, coking coal, and aluminum. We have meticulously
selected high-quality projects and accumulated competitive

Metals & Mineral Resources Division
Breakdown of Net Profit fromFYE 3/2021 to FYE 3/2023
Steel productassets to establish a well-balanced revenue base.
Copper and aluminum are metals indispensable for therealization of a carbon-free society. Demand for these metals
is likely to grow significantly amid the transition towards anelectrified society and the shift to renewable energy.

20%
Aluminum

Iron ore

4%
Copper16%

Demand for steel is also projected to increase alongwith economic growth. At the same time, while there is a24%
Cokingcoal

36%

growing demand for direct reduced iron that contributes toreduction in CO2 emissions, numerous challenges await the implementation of electric arc furnaces andMarubeni has a 30% interest in the Centinela
copper mine. Marubeni is studying the constructionof a new plant with a capacity equivalent to theexisting plant to achieve more stable operations
and to enhance production capacity. This project
would enable us to expand production capacity at
the Centinela copper mine by 1.5x its current levelto 450,000 tons annually.
This expansion would reduce overall mine
production costs by more than 10% (it isscheduled to finish after 2026).
Production capacity ofCentinela copper mine
(100% basis)300

2023.3high-grade coking coal have remained essential materials during this transition to a carbon-free society.

Promoting Business to Address Both Strengthening Demand for Metals
along with Economic Growth and Environmental Measures for Realizing a
Sustainable Society

After expansion

Development of future mining areas drawing on the advantages of owning integrated railway
and port infrastructure
Roy Hill Iron Ore Project

Expansion Strategy 2

production share through the enhancement and expansion of existing assets and the development

Enhancing and Maximizing Use of Existing

In response to the two social demands for a reliable supply of metals and environmental
measures, Marubeni will continue to stably procure and supply base metals, the demand for which
is likely to grow.

Increase indemand for metals
alongside economic
development

Acceleration ofenvironmental
measures towards
decarbonization*1. A framework established by the International Copper
Association (ICA) that indicates the copper industry’s
responsible production practices and industry contribution
to the United Nations’ SDGs.

Roy Hill Iron Ore Project

Marubeni’s policy is to strengthen cost competitiveness while maintaining and expanding itsof new projects.

All Chilean copper mines in which Marubeni
invests have obtained Copper Mark*1 certification.
Sources of power for operating these mines havebeen converted to 100% renewable energy, fromcoal-fired power plants.
The mines are committed to achieving zerogroundwater extraction by operating with seawaterand constructing desalination plants. Through theautomation of dump trucks
and remote mining operation,
the mines have achieved safeand highly efficient operations.

450(Thousand tons)hydrogen reduction technologies that are necessary for decarbonization. Consequently, iron ore andGreen Initiatives to Increase
Corporate Value

Infrastructure and Developing Mines of the Future
At the Roy Hill iron ore mine in Australia, where wehave a 15% interest, we are studying the enhancementof existing infrastructure, such as railways and ports, tomake full use of the infrastructure.
Together with our business partner, Hancock
Prospecting, we are also studying the development ofpotential mining areas close to existing operations tomaintain the supply of high-grade ores that will be
depleted in the future. This project also enables us
to strengthen our cost competitiveness by making
maximum use of the capacity of the existing
infrastructure.

Green Initiatives to Enhance
Corporate ValueAt the Roy Hill iron ore mine, we have been working
on further improvement of operational stability andefficiency, such as the remote management andautomation of mining trucks. Additionally, we areproactively working on the electrification of dump
trucks and transitioning to renewable energy sources.
Furthermore, in collaboration with Hancock
and WAPRES*2, Marubeni has been advancing
afforestation projects aimed at generating
carbon credits.
*2. WA Plantation Resources Pty., Ltd. (WAPRES) is a 100%
subsidiary of Marubeni that engages in forest plantationand the production of wood chips in Australia.

33

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

34

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

07

Trade
Trade, which connects demand to the supply of goods,
is fundamental to our business. We have strengthened
our customer, procurement, and logistics bases as
essential foundations to fulfill this trading function.

CustomerBase

In today’s constantly evolving global landscape, where
supply-demand dynamics are constantly shifting,Marubeni is leveraging its trading capabilities to meet
diverse needs.

Procurement
Base

Logistics
Base

Digital Transformation (DX)

Sustainability

Initiatives to increase efficiency

Initiatives for low-carbon productsof trade operations, automate vessel

and transportation, improvement ofallocation, etc.

traceability, etc.

Examples of Major Trades

Grains• Marubeni has grain collection networks inthe major producing regions of North andSouth America, and ensures a stable supply
to primarily Asia.
• Marubeni has storage and feed production
functions in Japan that consistently
create value.

Beverages

30• Marubeni is trading approx.
% ofdomestic consumption of coffee beansin Japan.
• Marubeni is strengthening efforts towardsustainable coffee.

EnergyOlefins• In addition to existing products like oil,natural gas, LNG, and uranium, Marubeni is
expanding new business scope such as
biofuels and carbon credit trading.

• Marubeni has an approximately%
share of the global maritime trade market
for olefins.

• Marubeni utilizes our infrastructure andnetworks in Japan and overseas to meetenergy demand during the transition period
to a carbon-free society.

30• Marubeni has long-term off-take agreements,
as well as storage and export service
contracts in the U.S., ensuring the flexibility
to meet global demand.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

35

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

08

Initiatives for the Next Generation (1)Next Generation Business
Development Division
Focusing on business development for the next generation in growth areas that Marubeni
has not yet tapped into, the Next Generation Business Development Division serves
as the core of our Horizon 3 strategy, which aims to create new business models.
Marubeni established the Next Generation Business Development Division based on the recognitionof the risk that existing businesses, its current revenue base, will eventually become obsolete.
Within the Marubeni Group, there are universal and enduring “winning formulas” in business thathave become major sources of revenue. We aim to apply this accumulation of winning formulas

Development Process of
Next Generation Business
Foster expectations
for growth by sharing
growth examples

Pursue good for societyLong-term businessdevelopment andperseverance

Identify high-growthdomains

Consolidate and leverage
Marubeni’s knowledge
and functions

Incorporate global
innovations

to next-generation growth domains with the intention of capturing growth through 2030, andincrease the corporate value of Marubeni.

Stay one step aheadof others

1. Create Businesses the Next-Generation Will Value
The goal of next-generation business development is to create businesses that will become pillars
in the future. The starting point for this is identifying growth themes that are ahead of the curvatureof change in society. We adopt a demand-pull approach, unbounded by product lines, in our

Business case examples

pursuit of a positive impact on society. In long-term growth domains, our basic approach to the

Lunatus: Middle East Pharmaceuticals &business development process entails observing global trends in innovation while leveraging

Medical Devices Sales Businessregional and time differences to rapidly create next-generation businesses for our customers froma long-term perspective.
2. Growth Themes for Leapfrogging into the Next Generation
Marubeni engages in business development and investments in the healthcare/medical,
next-generation social infrastructure, and wellness fields.

In 2022, Marubeni acquired an equity stake in Lunatus Marketing & Consulting FZCO (Lunatus), a
company that distributes and sells pharmaceuticals and medical devices in the Middle East and the
Gulf region.
In Middle Eastern countries, there are growing needs for more advanced pharmaceuticals andmedical devices, driven by increasing health consciousness against the backdrop of lifestyle changes.

Healthcare/medical: We are advancing businesses that target the healthcare market, which is
expected to see further growth due to aging populations, increasing health awareness, andadvancements in medical technology, among other reasons.

After Marubeni made this investment, we have been negotiating with Japanese pharmaceutical

Next-generation social infrastructure: We are exploring the construction of social infrastructure
for the next generation, focusing on areas like new decarbonization technologies, offshore DX,
and next-generation industrial parks.

that ranges from drug approval applications

Wellness: Targeting next-generation consumers in Asia, we are pursuing growth businesses in thebeauty and consumer brand fields.

Moreover, we are constantly searching for new signs of change and growth themes aroundthe world, and linking them to business development.

companies and medical device manufacturers,
supporting the creation of a one-stop system
to marketing, sales, distribution and aftersales services.
We will actively pursue business value
expansion by obtaining licenses for our own
products, and setting up clinical trials and researchfunctions in response to local pharmaceuticalregulations and sales needs.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

09

Initiatives for the Next Generation (2)Approach to Value Creation

Next Generation Corporate
Development Division

Focus onconsumer-related
businesses

Marubeni aims to ensure the growth of the Group by supporting the medium- tolong-term expansion of investee companies with strong growth potential in
consumer-related businesses in Southeast Asia and the U.S.
Approach tovalue creation

Within the scope of Horizon 3, the Next Generation Corporate Development Division focuses onareas that have the potential for significant growth by capturing the needs of next-generation
consumers. While executing sizeable investments, we aim to build a business portfolio that
contributes to the enhancement of Marubeni’s corporate value.

Build abusiness portfolio
in growth fields

Investment
structure that increases
likelihood of success

Create sourcesof growth for
Marubeni beyond
2030

1. Background
The Next Generation Corporate Development Division was established in April 2022 for the
purpose of stepping up initiatives undertaken by the Next Generation Business Development
Division, which had been in operation for three years. Its overriding objective is to use investment
to build new businesses with strong growth potential that will drive Marubeni’s future growth
beyond 2030.
2. New Approach: Corporate Development
The Next Generation Corporate Development Division targets consumer-related business domains
with high growth potential in Southeast Asia, investing in businesses and companies that harness
major trends, such as macroeconomic shifts and lifestyle changes. Similarly, investments are
made in complementary domains in the U.S., with the aim of creating synergies between thetwo regions through an understanding of the latest business models and consumer trends. As amedium- to long-term strategic partner of the investee companies, Marubeni supports theirbusiness expansion by offering access to Marubeni Group’s global network, which in turn allows
their growth to drive growth for the overall Marubeni Group.
Investment firms were established in Singapore and the U.S. to serve as platforms forthese initiatives. Led by highly skilled specialized investment professionals, these firms handle
everything from project sourcing to investment execution and post-investment business
management. This integrated approach aims to increase the likelihood of investment successin order to create value for Marubeni.

Investment Example

Tim Hortons® Franchise Business
In February 2023, Marubeni entered into a franchise agreement with Restaurant Brands International
to participate become a franchisee of Tim Hortons®, a leading Canadian coffee brand, in Singapore,
Malaysia and Indonesia.
Tim Hortons® is one of the world’s top three global coffee brands, and is admired byconsumers for its high-quality coffee and extensive food menu. It operates over 5,600 stores in
14 countries worldwide.
The cafe market in Southeast Asia is
expected to experience significant growth asa result of greater coffee consumption amid
expanding populations and rising incomes,
as well as changes in the way cafes areused, especially among younger people.
Through this business, we aim to expand
operations in the food and beverage service
sector in Southeast Asia, a market with highgrowth potential.

36

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Initiatives to Create Value

10

New Energy

Initiatives in New Energy
Marubeni has established the New Energy Business Development Department
as an organization dedicated to advancing the development of the newenergy domain, where significant demand is anticipated amid the movement
toward decarbonization. We are proceeding with work aimed at investment,such as feasibility studies and basic design, in collaboration with many
partners and potential customers.
Development of Green Hydrogen Production Projectin Queensland, Australia
In May 2023, Marubeni entered into an agreement related to the Front-End Engineering Design

Feasibility Study for Low-Carbon Ammonia Business in Alberta, Canada
In May 2023, Marubeni was pleased to announce the conclusion of a Memorandum of Agreement(MOA) with Pembina Pipeline Corporation, Canada’s major energy infrastructure operator,
to co-develop a full-fledged feasibility study for the establishment of a low-carbon ammonia
supply chain.
At Pembina’s site located near Edmonton in Alberta Province, Canada, we plan toproduce approximately one million tons per year of low-carbon ammonia, starting in thelatter half of 2028. using the abundant natural gas available in the province. CO2 emissions
from the production process will be reduced through CCS and CCU*.
The produced ammonia, classified as low-carbon ammonia, will be transported via rail

(FEED) for a green hydrogen production and liquefaction project in Queensland, Australia, in afor export from ports on Canada’s west coast andfive-company* collaboration with Stanwell (Australia), Iwatani, Kansai Electric Power and Keppel

then shipped by sea to areas of demand, including

Infrastructure (Singapore).

power plants in East Asia, such as Japan and SouthThis project includes the supply of liquefied hydrogen to Kansai Electric Power and greenhydrogen for ammonia production facilities under consideration by Keppel and others.
The total expected FEED cost is 117 million Australian dollars, and it will receive 20
million Australian dollars of funding support from the Australian Renewable Energy Agency(ARENA). The project aims to target an initial capacity of 200 tons per day by around 2028
and 800 tons per day by around 2031.
Through the activities of the project, we will contribute to the realization of a large-scale

Korea. Through the activities of the project, we aim tocontribute to Japan’s energy security and a low carbon
society in both Japan and Canada.
* Technology to capture and store (CCS: Carbon dioxide Capture and Storage) or
effectively utilize (CCU: Carbon dioxide Capture and Utilization) CO2

MOA signing ceremony

Proof of Concept Project for Green Hydrogen Productionhydrogen supply chain championed and supported by the Japanese and Australianand Utilization in Australia

governments and thereby

Using excess power generated from renewable energy sources is an issue in Australia. As part

contribute to the realizationof a project under Japan’s Ministry of the Environment, Marubeni intends to reliably produceof a carbon neutral society.

affordable green hydrogen in South Australia, utilizing surplus renewable energy, and offer power* Stanwell and Keppel Infrastructure areenergy infrastructure companies.

grid stabilization functions through an energy management
system. The produced green hydrogen will be transported
to industrial parks in the vicinity of Jakarta, Indonesia,
using hydrogen by metal hydride* tanks, contributing todecarbonization through the supply of heat and electricity
through fuel cells.
Image of hydrogen production site

* Technology to store hydrogen (absorbs hydrogen through cooling andpressurizing, discharges hydrogen through heating and decompression).

Demonstration facility under construction

37

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

38

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Business Policies SPP and Marubeni Group Governance Policy
Business Policies SPP SPP (Strategy × Prime × Platform)

Marubeni Group Governance Policy

Business Policies SPP is the basic concept common to all Marubeni Group business models.

The overall growth of Marubeni is linked to that of the businesses conducted by the large

By making Strategy-Focused business investments based on SPP, we focus on making

number of companies in the Group. To enable each Group company to pursue growthbetter targeted, more rigorously selected investments, and by taking into account SPP in

independently, Marubeni oversees the business management of every Group company asbusiness operations we monitor and strengthen existing businesses and expedite thethe shareholder and business owner, based on a common set of Group policies and strategies.

divestment and reallocating of assets with the aim of maximizing theThis system of operational execution and management is designed to help maximize corporate

value of our business portfolio.

value. Marubeni Group Governance Policy is a policy shared by the entire group that ensuresthis system in terms of governance.

Maximizing thevalue of businessportfolio

Marubeni
Role: Development of Group management
policy and basic strategy;
supervision of the management of Group Companies

Constructive
dialogue
Managementtransparency

Group companies
Role: Execution of management of
individual businesses
Autonomous growth, maximization of corporate value

StrategyGroup Governance Policy
Business
Policies

Prime

Platform

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

Strengthening existing businesses
Expediting divestment and recycling assets

Business Policies SPPStrategy

Strategy policies involve closing the gap between our future vision and the present in each business field.
It expresses our renewed commitment to staying intensively strategy-focused• This includes exploiting dynamic value creation via digital transformation (“DX”)
Prime policies involve taking the initiative to execute the strategies across all Marubeni Group businesses.

Prime

If we were to merely invest in businesses, we would have much fewer opportunities to create solutions tothe challenges and issues facing society and customers. We would also have less growth potential.
We have accordingly made a commitment which means proactively formulating and executing with theaim of increasing the value of our businesses.
Platform policies involve leveraging the Marubeni Group’s platform to substantially grow its businesses

Platform

We treat businesses with promising prospects of geographic, market or product-line expansion as
platforms. We will pursue expansion of such businesses through M&As and/ or organic growth with theaim of long-term earnings growth
In addition, we will employ the Group’s knowledge, know-how, and assets to create new value bysynergistically combining a wide variety of internal and external expertise

Implementing SPP, Group Governance Policy — U.S. Automotive Aftermarket Business
Marubeni Group’s automotive aftermarket business works to implement Business Policies SPP and Group
Governance Policy through MAIHO III, LLC, which oversees three operating companies—XL Parts, LLC(Texas), TPH Holdings, LLC (Florida), and Automotive Parts and Services Holdings, LLC (Virginia).
Strategy: In the U.S., where automobiles are important infrastructure supporting people’s lives, we pursue
business expansion and transformation by strengthening customer service and our delivery network, which
provides rapid delivery of repair parts.
Prime: After acquiring XL Parts, LLC and TPH Holdings, LLC, Marubeni carried out strategic area expansion
through the opening of new locations and acquisitions of other firms within theindustry and secured differentiation with an extensive inventory lineup andflexible delivery network.
Platform: We have newly acquired Automotive Parts and Services Holdings,
LLC, which provides mobile inspections and conducts online sales of repair
parts, and we are expanding corresponding markets and business areas.
Group Governance Policy: In the process of integrating each company,
we foster PMI best practices including for IT systems, regulations, and process
Hitoshi Kimura
management, based on Marubeni Group Governance Policy to achieve
Chairman, MAIHO III, LLC
autonomous growth.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

39

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Business Investment Process
To strengthen our business portfolio, we make business investments as a means to acquire functions, human resources, knowledge, and other assets that our group does not have.
We carry out business investments by implementing the following process for each project, maintaining investment discipline while selecting projects, and after execution, by utilizing
our functions to improve the quality of assets, developing a business portfolio that allows for sustainable profit growth over the medium to long term.
1.
Strategy
formulation andorigination

2.
Investment
decision

3.

4.

PMI

Upgradingand recycling
assets

1. Strategy formulation and origination

2. Investment decision

We define a future vision for each business area and formulate growth strategies to achieve it.

Decision-making Process

In order to make Strategy-Focused investments, we emphasize origination that is in line with theWe have created a multilayered decision-making process to help pursue investment returns

growth strategies of each business area and agrees with Business Policies SPP (see page 38).

and control risks, while also delegating authority to each Business Group to support faster

Corporate Staff Groups participate in the examination of each project as appropriate,using their expertise to assist in project origination, and also analyzing and examining eachproject from a check perspective.

decision-making.
1

Strategy formulation

Origination
Corporate Staff Groups

Formulation of future
vision, determination of
growth strategy(Identification of necessary
investments and acquisitions)Global gathering of
information, initial selectionof investment andacquisition candidates

Legal Department, Corporate Accounting Department,
Finance Department, Risk Management Department, Sustainability
Management Department, Compliance Control Department, etc.

Inside the Company

Support and check

Each Business Group· Various kinds of due diligence· Business plan development· Identifying synergies

Outside the Company

Negotiations and such with sellers,
investees, partners, and others

Careful selection in light of Business Policies SPP

Decision-making Process2

3

Business
GroupsCorporate
Staff Groups

Application

Analysis/opinion

4

Investment
and Credit
Committee

Corporate
Management
Committee

Board ofDirectors

1

Business Groups (business divisions/business departments) submit business investment contents
and business plans for approval.

2

The relevant Corporate Staff Group submits opinions on the result of risk analyses from both aquantitative and qualitative perspective.

3

The Investment and Credit Committee*1 reviews the feasibility and analysis-based risk profile ofeach project, including any concentrations of risk at the Group level. The major quantitativeevaluation criteria used are the IRR, payback period and PATRAC*2. Virtual costs are calculatedwith reference to Internal Carbon Pricing (ICP).

4

The project is forwarded to the Corporate Management Committee and approved by the President.
Projects exceeding a materiality threshold require deliberation by the Board of Directors.

2. Towards
investment
decision*1. Besides the Chair 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 exceed a minimumrisk-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 businessdivision, depending on deal size.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

40

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

3. PMI (Post Merger Integration)

Important Deliberation Points
in Investment Decision

Learning from large earlier impairment losses, we are focused on strengthening our organizational

Qualitative
Evaluation

capabilities for business investment.

A

B

We have established a support system for the business departments handling thebusiness in question using Corporate Staff Groups, ensuring the early establishment ofmanagement infrastructure and the realization of synergies.

Strategy
Business(micro)Business
Policies
Prime
Platform

External
Environment(macro)4. Upgrading and recycling assets
Monitoring process
Monitoring focuses on new and significant projects in the post-investment phase, the aim
being to identify problems and formulate solutions as quickly as possible. An internal
process is used to decide if a project with specific issues should be restructured or exitedC

D

Quantitative
Evaluation

after the consideration of multiple factors relating to the strategic value, growth potential
and profitability of the business.
Monitored projects: 1 Within three years of initial investment 2 Negative PATRAC three years running
3 Other criteria (low returns, project peak anticipated, etc.)

A

Positioning of investment concerned in
medium- to long-term growth strategy

B

Social trends (megatrends, technologicalinnovation, risk of obsolescence)

Understanding of investee’s business model

Changes in potential needs/values

PDCA cycle for strengthening the earnings base

Added value created by / significance ofMarubeni’s participation

Industry trends/industry knowledge

Under GC2024, with the aim of improving the return on our existing assets we began utilizing

Sustainability/ESG
Opportunities and risks related to climatechange, biodiversity, supply chains, etc.

PDCA cycles for the periodic evaluation of capital efficiency and risk/return ratio (based on

Investee’s competitive advantage andits continuity
Action plan for realization

Compliance

PMI (Post-merger integration process)

Related regulations (finance, taxation,
foreign investment regulations, etc.)

Completion risk/Technological risk

ROIC/CROIC and RORA)
of each business division/company. Formulating andexecuting action plans, wewill work to optimize theCInternal rates of return (IRR), payback
period, PATRAC
Validity of acquisition price
KPI
Exit criteria

D

IRR premium (country risk, currency risk, etc.)

quality of our assets andLiquidity of acquired assets

improve ROE.

Probability of assumptions used for
future predictions

Beginning of term

department and operating
Review of results
improvement
plans

Monitoring
Cycle

Pick up businesses withlow efficiency ratios
Make short-list of businesses
after considering individual
improvement plans
Short-listed businesses
reviewed by Corporate
Management Committee

Middle of term

Main divestments in GC2024: Gavilon grain business (low efficiency), cross-shareholdings

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Message from the CAO
Human Capital as Our Most Valuable Asset
The Marubeni Group regards human capital as our mostStrengthening the Link between
Management Strategy and Human
Capital Strategy

valuable asset. It is our greatest asset for continuing tocreate value in a diverse and uncertain society and is the

The starting point for the idea behind the “Marubeni HR

driving force for value creation.

Ecosystem” is linking management strategy with human capital

The Marubeni Group has grown by creating and providing

Mutsumi Ishizuki

Department together to discuss human capital-related issues,

Management Strategy GC2021 was created, there was a

we are aiming for a human capital strategy that aligns withdeeply rooted organizational culture of groupthink arising frommanagement strategy. In addition to invigorating communicationeach business group focusing on their respective products.

between employees and management and permanently

With the need for new value creation in a rapidly changing

establishing a Talent Management Committee (a humansociety and environment, there was a strong sense of crisis

capital strategy committee comprised of members fromthat if we did not act promptly to reform, we would not be

management), the Marubeni Group in 2023 newly establishedable to respond to changes in the environment and survive

a CHRO position in order to strengthen the creation andanother decade.

promotion of HR-related systems and measures that

Accordingly, we established the “Global crossvalue
platform” as our vision of the future, aimed for every single

Senior Managing Executive Officer

employee to go beyond existing frameworks and to endeavor

Chief Administrative Officer (CAO); Chief Operating Officer,

to create new value, and adopted the “Marubeni HR

Human Resources Dept.; Senior Operating Officer, Audit Dept.;

Ecosystem” as our HR strategy.

Senior Operating Officer, Executive Secretariat; Vice Chairman of
Investment and Credit Committee; Chief Compliance Officer (CCO);
Chairman of Internal Control Committee; Chief Information Officer (CIO)

Human Capital withHigh Social Value

Diversity &Inclusion

Culture of Active
Participation andConnectivity

contribute to the execution of management strategies.

Developing the Marubeni HR Ecosystem
to Continue Providing Value to Society
Five years have passed since the establishment of the

The Marubeni HR Ecosystem: Where
Diverse Human Capital Comes Together,
Becomes Energized, and Connects“Marubeni HR Ecosystem.” Our belief remains that human

The “Marubeni HR Ecosystem” is a human capital strategy wherechange, we will continue to develop the Marubeni HR

Marubeni Group employees with diverse backgrounds and highMarubeni
HR Ecosystemstrategy. By continuously bringing management and the HR

solutions for customers and society. When the Mid-Termsocial value gather, thrive, and connect to create a cycle ofproviding new value to meet the needs of customers and society.
Under the current Mid-Term Management Strategy
GC2024, the Marubeni Group is aiming to further develop
the “Marubeni HR Ecosystem,” and several measures havebeen created to achieve this goal.

capital is the source of the Marubeni Group’s value, andthat the key to growth is for each and every employee todemonstrate their full potential. Even in an era of rapid
Ecosystem by bringing together truly diverse human capital,
working proactively, and connecting with each other, so that
we can become a corporate group that continues to provide
value to society.

41

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

42

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

HR Strategy

Marubeni
HR Ecosystem

Diversity & Inclusion

Culture of Active Participation
and Connectivity

Leveraging diverse values
Increasing value creation
capabilities utilizing the strengthof diverse individuals

Creating environments andworkstyles for invigorating
human capitalOpen innovation to bring together
internal and external ideas

Connecting

Management Strategy

Human Capital withHigh Social Value

Being Energized

Human capital that creates new value
Highly regarded and essential tosociety and our customers

Coming Together

Diverse Human Capital

HR Ecosystem

Major Achievements and KPIs

Percentage of Mid-Career Hires among Result 14.3%
Full-Time Employees (FYE 3/2023)
Compared to FY2022 +0.5%
Percentage of Newly Hired
Female Employees (FYE 3/2023)

Result 39.5%

Engagement Score(FYE 3/2023)

Result 59.2 *Deviation Score
Compared to FY2022 +0.5 Points

Average Hours of Training
Per Employee (FYE 3/2023)

Result 46 Hrs. Per Employee
Compared to FY2022 +5 Hours Per Employee

Percentage of Women in
Management Positions (FYE 3/2023)

Result 8.2%
Target 10.0% (By FYE 3/2026)

Crossvalue Coin

Result Approx. 1,550 Instances /Target Approx. 50%

Approx. 7,800 Coins(Total from FYE 3/2021 to FYE 3/2023)

No. of Internal Talent Recruitment and
Employee Job Matching System Transfers(Total from FYE 3/2019 to FYE 3/2023)

Result 193 Transfers

Key HR Initiatives· Mid-career Hiring· “Career Vision” Recruitment Initiative· “No. 1” Recruitment Initiative· PR events· Mission-oriented HR system· Engagement Survey· Human Capital Development(On and Off the Job Training)· Health and Productivity Management· 15% Rule, Crosshelp, Crossvalue Coin
· Internal Talent Recruitment and Employee
Job Matching System· Business Plan Contest (Bizcon)

New Value Creation

Aligning with Management
Message from the CHRO

Koji Kashima
Executive Officer
CHRO (Chief Human Resources Officer)

I became Chief Human Resources Officer (CHRO)
in April 2023. This role involves formulating andpromoting human capital strategies that contributeto management strategy. For the Marubeni Group,
human capital is our greatest asset and the driving
force behind value creation. To execute ourbusiness strategy, we will continue to advanceand develop the “Marubeni HR Ecosystem” toensure that each and every employee can utilize
their abilities to the fullest potential.

Talent Management
Committee

Dialogs between Managementand Employees

Employee Stock
Ownership Program

To promote human capital strategy
that aligns with our management
strategy, we hold human capital
strategy meetings featuring the CEO,CAO, CSO and CHRO as key
members. Members not only discuss
HR-related systems and measures
but also high-priority agenda items
related to our human capital strategy,
such as leader development,
employee engagement, and diversity
and inclusion.

We are increasing opportunities for
direct communication between
management and employees todiscuss and share thoughts on
management philosophy, visions andstrategies. In addition to regularly
holding meetings to exchange opinions
between the CEO and employees, we
also have a direct question-and-answer
system for employees called theOpinion Box. To date, we have received
approximately 1,200 questions throughthis system.

As a result of the Talent Management
Committee and dialogs between management
and employees, employees’ interest andparticipation in company management has
been increasing yearly, with an employee stock
ownership plan enrollment rate of 86.2%(as of FYE 3/2023). By having more employees
join the stock ownership plan and increase
their shareholdings, we not only contribute toemployees’ asset building but also aim tofoster a stronger sense of collective
responsibility towards enhancing corporate
value. Since the fiscal year ending March 31,
2023, we have been providing special
initiatives for employees who join this plan.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

43

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

HR Strategy

Coming Together

ComingTogether

Being
Energized

Connecting

To adequately address diverse social issues and customer needs, it is essential to have human capital from diverse backgrounds and move away from conventional uniformity
and groupthink. In order to become an even more diverse workforce, the Marubeni Group is strengthening its approach and outreach to appeal to diverse talent.

Securing Diverse Talent

Promoting Marubeni’s Appeal

While incorporating distinctive hiring methods, we engage with a diverse pool of talent

We are focusing on sharing information that attracts talent with high market value. Our recruitment

who can become the drivers of new value creation by leveraging their expertise, capabilities

website features numerous interviews with employees and introduces various career paths within

and individuality.

our company. In addition, taking advantage of opportunities to

Based on the needs of each department, we recruit and hire talentthroughout the year who possess new insights and experiences. Marubeni
hires approximately 30 to 50 mid-career employees every year, and 34
individuals joined during the fiscal year ended March 31, 2023.

Mid-career
HiringMid-career Hires

Career Vision is a job-based hiring program for recruiting people who haveindicated the responsibilities and department that they want to apply forwithin our company. Employees in the Recruiting Section lead theadvertising and assessment processes, which includes planning advertising
campaigns to the actual candidate selections, and approximately 25 to 30
departments participate each year.

Career Vision
Recruitment
New Graduates
Mid-career HiresThis hiring program involves applicants demonstrating their experience
as a leading expert in their respective fields. Candidates “audition” bycreating a self-promotional video that highlights their “No. 1” qualities.
Approximately 740 internal stakeholders participated in the evaluations,
including the CEO and other executives.

“No. 1”
Recruitment
New Graduates

New Graduates / Mid-career Hires
Ratio of Mid-career Applicants Hired as Full-time Employees (March of Each Year)
38

30

34

14.3%

13.8%
13.3%
116

New Graduate Hires

124

123

Mid-Career Hires
Percentage of Mid-career Hires as Full-time Employees

2021.32022.32023.3

directly convey our appeal, we participated in approximately 140
PR events and connected with over 50,000 potential candidates
in the fiscal year ended March 31, 2023. We also hosted about
70 company events, which had more than 6,000 participants intotal. Recognized as a company that hosts attractive recruiting
events, we have received awards such as the Hyakumeisha
Marunouchi Area Gold Award from ONE CAREER Inc.

Special Recruitment Page: 100
Multifaceted Marubeni Employees(Japanese Website Only)

Diversity Management
At the Marubeni Group, we aim to establish a corporate culture and values that leverage thestrengths of diverse individuals, where everyone can work proactively regardless of gender,
nationality, age, employment history, and disabilities.
Main Initiatives

Details· Marubeni Global Mobility Program (seconding employees from overseas
Marubeni Group companies to locations outside of their home country for aset period)· Marubeni Diversity Days (an event to deepen understanding about workplace
diversity, including new graduate and mid-career hires)

Promoting Employment of People with Disabilities
To promote the employment of people with disabilities, we established the
Marubeni Office Support Corporation in 2008, which is certified as a special
subsidiary company. In 2020, we were the first company in Tokyo to obtain the“Monisu Certification,” awarded to small and medium-sized enterprises thatexcel in the employment of persons with disabilities. Additionally, in March
2021, we were recognized by the Tokyo Metropolitan Government as abarrier-free best practice company.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

44

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

HR Strategy

Being EnergizedComingTogether

Being
Energized

Connecting

The Marubeni Group aims to create a positive cycle where each employee sets their own missions, endeavors to achieve challenging objectives, and contributes more to theorganization. To enable our personnel to thrive, we focus on initiatives such as human capital development and health and productivity management, while implementing a
mission-oriented HR system.

Mission-oriented HR System
At Marubeni, each employee is given a mission (role) based on their skills and characteristics.

ended March 31, 2023, our engagement score improved compared with the previous survey.

The goal of this is to enhance the strategic execution capabilities of the organization by

Also, regarding Link and Motivation Inc.’s Best Motivation Company Awards 2023, Marubeni

augmenting each individual’s contribution. Furthermore, we believe that employees taking

received the Third Place Award in the large companies category (over 2,000 employees).

on bold challenges toward more significant missions and striving for excellence will lead to* The engagement score (deviation score) reflects conditions in the organization. A deviation score of 50 is the average for companies
that use services provided by Link and Motivation Inc.

their further growth and their increased market value.
The idea that “the mission of each employee is at the core of organizational strategy
execution and talent growth” has been incorporated into our HR system and is reflected inperformance evaluations and compensation. Regarding the implementation of our HR system,
an emphasis is placed on active communication between supervisors and their employees inorder to allow employees to take on more challenging roles and objectives. A cycle has been
established where the supervisor and the employee agree on the mission, maintain regular

Engagement Score* Deviation Score

53.3

communication in daily operations, and then set the mission for the next fiscal year based on

Improvement in Engagement Score as a Result of
the Organizational Improvement Program (Average)
59.2

58.7

+5.4pt* Deviation Score+0.5pt58.0

50.9 +7.1pt

Percentage of Departmentsthat Achieved Engagement
Score Improvement as a
Result of the Organizational
Improvement Programs

year-end evaluations and feedback to the individual.
Organizational
Strategies andIndividual
Characteristics

MissionActions

Expected Roles
Quantitative &Qualitative Goals

Concrete actions
and processes

Contributions
Create value that is
highly regarded by andessential to society
and our customers

Organizational Strategy
Implementation and Human
Capital Development

2020.32022.32023.3

BeforeAfter

Result 87.5%

Based on the results of the survey, Marubeni provides organizational programs to departmentsthat seek to improve. After creating and executing improvement action plans, each action plan’s

TalentManagement

HR Assessment

Total
Compensation

Zone/Band & Compensation

effectiveness is evaluated and reviewed through focus surveys and engagement surveys. Several
departments that participated in this program achieved higher engagement score results.

Engagement Survey
Marubeni defines engagement as “a relationship where individuals andthe organization come together and contribute to each other's growth.”
To improve organizational management and various organizational
systems and to create a dynamic workplace, an internal survey is used
to measure the engagement score* of employees. In the fiscal year

Organizational Improvement Program
Identification of Areas to
Improve in an Organization,
Action Plan Formulation

Focus Survey

Implementation of Shared
Improvement Actions in
the Organization

Engagement
SurveyCorrection Plan after Focus
Survey and Taking Action

Overall Review and
Identifying Future
Challenges

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

45

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

HR Strategy

Being EnergizedComingTogether

Being
Energized

Marubeni Global Academy

Connecting

Human Capital Development
To promote the growth and active involvement of the Marubeni Group’s employees, thesource of our corporate value, we are driving talent development through a dual approach:This training system covers business skills, leadership and management,
and individual specializations. In addition to position-specific andopen-application training programs, we integrate selection programsin collaboration with domestic and international business schools.
Through these efforts, we provide growth opportunities tailored toeach employee’s career.

Business
SkillsLeadership
Individual
Management Specializations

on the job training as the core and off the job training as a supportive function.

Off-the-Job Training Overview

Human Capital
Development Policy

On theJob Training

Marubeni Global Academy

Taking on
Challenging
Missions· Considering Missions and Career Plans
Based on Talent Assessments· Seconding Early Career Employees Overseas· Experience-enhancing Assignments

Off theJob Training

Enter Company
Position-based
Training
Open-application
Training· Marubeni Global Academy· Training for Each Organization· Individual Learning Support

Managers and Team Leaders

Next-generation Management Candidates

New Employee Training

Training for New Section GMs

Foreign Language Training

Cross-cultural Training

Coaching Training
Ⅰ

Selection Programs

Training for New Dept. GMs

Marubeni Executive LEAD Program

Short-term Executive Program
Ⅱ Marubeni Master Course

Organization-based Training
Individual Learning Support

Talent Assessment
Through multifaceted observations and self-assessments,
we visualize each employee’s distinct behaviors,
strengths, and challenges. A total of 64.9% of all
employees were assessed by the fiscal year ended
March 31, 2023, and we plan to further expand thescope in the future. The visualized information is utilizedby each organization for transfers/placements, assigningmissions, and daily team management. Individuals canalso use this information for self-reflection and to help
guide decisions on future skills training and plans forcareer development.

Individual Learning Support

Average Training Hours per Employee
among All Training Participants
46
41
39
25,18832,5352021.32022.3Ⅰ

Marubeni Executive LEAD Program

Under the theme of cultivating the next generation of leaders to lead the
Marubeni Group, this selection program includes sessions customized exclusively
for Marubeni by IMD, a business school based in Switzerland. Participants learn
about cutting-edge management theories and leadership.

Lead
EngageAccelerate
Develop

Marubeni Master Course

43,320Ⅱ

2023.3

Professors are invited from Japan-based business schools to provide lectures on essential knowledge
for business management, such as management strategy, accounting, finance, organizational
management and marketing. Employees from various departments and of various ages participate
in this program, which includes lectures, case studies, and discussions to enhance their skills.

FYE 3/2023

FYE 3/2023 Results

43,320 People

46 Hours / Employee(+10,785 Compared to FY2022) (+5 Hours per Employee
Compared to FY2022)

To further enhance the autonomy of motivated employees, we offer support for skills development,
acquiring knowledge and experience that cannot be gained through regular work activities, andemployee skill development. We offer support for obtaining qualifications, approximately 60
cases annually, and have a track record of assisting around 1,800 employees with businessknowledge-related learning services.

Talent Development for Digital Literacy
To strengthen talent that drives digital transformation (DX) within the Marubeni Group, we conductvarious training programs and workshops.
P.51 Developing/Upgrading Our Digital Talent Base and IT InfrastructureValue Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

46

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

HR Strategy

Being EnergizedComingTogether

Being
Energized

Using FemTech

Connecting

Health and Productivity Management
Marubeni Group Initiatives for Health and Productivity Management
We regard employee health maintenance and improvement as importantmanagement issues. As the Chief Administrative Officer (CAO), I take theutmost responsibility for supporting the vitality of our employees, thesource of the Marubeni Group’s growth. We are advancing health andproductivity management initiatives, such as improving healthliteracy, measures to combat cancer and lifestyle-related diseases,
mental health support, and strengthening efforts in women's healthmaintenance and improvement.

Mutsumi Ishizuki
Senior Managing Executive Officer,
Chief Health Management Officer

Health and Productivity Management Strategy Map
Marubeni Group Health Declaration
Marubeni Health and Productivity Management Promotion Structure
Improving Health Literacy

Strengthening Countermeasures Against Cancer
and Lifestyle-related Diseases· Regular Health Checkups· Holding Health-related Seminars
Investingin Employee
Health· Initiatives for the Early Detection and Prevention of Cancer· Programs to Improve Lifestyle and Exercise Habits

Marubeni Health Improvement Project
Strengthening Initiatives for
Maintaining and Promoting Women’s HealthStrengthening Mental Health Measures· Using FemTech· Subsidies to Help Cover Costs of Uterine
Cancer and Breast Cancer Examinations

Effectsof Investingin Employee
HealthDecrease Employee Health Risks· Promoting Use of EAP Services· Implementing Mental Healthcare Training

Improve Employee Performance

In order to create an environment where women canwork actively from the time they join the company
until they retire, Marubeni offers seminars tailored tostages in women’s lives. We also provide online
medical consultations, advice, medication guidance,and prescriptions for issues related to menstruationand menopause. Among program participants, work
performance during periods of discomfort associatedwith menstruation and menopause has improvedby 17% compared to before their participation inthis program.

Initiatives for the Early Detection and Prevention of Cancer
We have made tests for Hepatitis B, Hepatitis C, helicobacter
pylori, and tumor markers mandatory items for regular healthcheckups. Additionally, for employees of specific ages, Marubeni
offers neurological checkups and colonoscopies at company
expense and subsidizes the cost of comprehensive medical
checkups at external medical institutions. In case of employee
illness, we have systems in place so that employees can continue
working with peace of mind, such as medical cost assistance,
job security during treatment, and income protection provided by
support from the Marubeni Health Insurance Association.

Ratio of Participation in Regular Health
Checkups (Japan and Overseas)
Japan

Overseas

99%

100%

99.7%

Improve Work Engagement

80.1%
Management
Issues Solved
through Healthand Productivity
Management

Support Employee Vitality

100%

63.1%

Link to the Growth of the Marubeni Group
2021.32022.3

FYE 3/2024 Target
Japan-based andOverseas Health
Checkup Ratio: 100%2023.3

Notification Emails for Employees about
Each Policy

External Recognition
Marubeni’s efforts in health and productivity management have beenrecognized by external organizations. In 2023, Marubeni was listed on
the Health & Productivity Stock Selection, and for six consecutive years
running to 2023, Marubeni has been listed in Health and Productivity
Management in the large enterprise (White 500) category.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

HR Strategy

Connecting

ComingTogether

Being
Energized

Connecting

We believe that talent exchanges across different businesses strengthen internal collaboration and generate new value, and we have established mechanisms to encourage
collaboration among our employees. Globally, we are expanding efforts aimed at interactions with employees outside one’s own department and fostering a culture of innovation.

Foundation for Innovation

Innovation Creation

15% Rule, Crosshelp, Crossvalue CoinMarubeni Academia

The 15% Rule allows employees to allocate 15% of their working hours to activities outside of
their regular work responsibilities that contribute to value enhancement within the MarubeniGroup. Crosshelp is a system where organizations can solicit internal assistance from other
employees on a part-time basis. Crossvalue Coin is
Coins Granted (one coin = ¥10,000)
a reward system that grants coins to employees
who have contributed to other organizations or
regional strategies. These various initiatives are
Collaboration andorganically linked to encourage the creation of new
Cooperation Acrossvalue across business units.

The Marubeni Academia program aims to nurture global
innovation leaders who will lead the Marubeni Group. Diverse
talent who are excelling globally are chosen for this program
to engage in discussions on various themes over the courseof a year.

Crossvalue Coins Granted

Organizations

Division A Chief
Operating Officer

Division B
Employee

Three-year Total (FYE 3/2021 to FYE 3/2023):

Approx. 1,550 Instances / Approx. 7,800 CoinsContribution to Division A’s strategy

Internal Talent Recruitment /Employee Job Matching System
Marubeni has an Internal Talent Recruitment
System where organizations can publicize job
positions and an Employee Job Matching
System where employees can request transfers
to other organizations. These systems promoteautonomous career development for employees
and foster an open community where talent canfreely move across different departments.
Cumulative Transfers

Five-year Total (FYE 3/2019 to FYE 3/2023):
193 Transfers

Employee Job Matching System
Request a Transfer
Publicize Open Positions
Organization

Employees

Internal Job Matching Program

Business Plan Contest (Bizcon)
This global contest is an open call for business proposal
projects within the Marubeni Group. Now in its fifth year,
this contest has led to proposed projects being evaluatedand commercialized, such as a digital maternal and childhealth record business in Indonesia, which was assessedand developed into a business. This project will continue toplay an important role as a platform for fostering a cultureof innovation.

Workreation — Promoting Crossvalue through a Workplace Where Diverse Talent Connects
Completed in 2021, the concept of our head office in Tokyo is based on the idea of a workplacecreating a connection and growth “Chain.” We have adopted an Activity Based Working (ABW)approach that allows employees to individually choose their work location. Aiming to improve
productivity and create new value
through connections in the workplace,
we are enhancing and optimizing ourworking environment through theactivities of the “Workreation” internal
CircleHuddleRoundSpaces that build
Spaces to gather andSpaces that create newtask force.
trust and createorganizational unity

converse with a shared value with diversity
purpose47

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

48

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

HR Strategy

Female Empowerment at Work 2.0
At the Marubeni Group, we are committed to promoting the active participation of female employees as a top priority in our diversity
initiatives. In August 2022, we established “Female Empowerment at Work 2.0” as our new policy and set clear numerical targets.
We are also placing greater emphasis on “expanding the talent pipeline,” which is aimed at enhancing growth opportunities for womenand making their career paths leading to decision-making roles more robust and broader.
ComingTogether

Being
Energized

Connecting

Further Strengthening Recruitment

We aim to increase the total proportion of female employees at Marubeni, including all
new graduates and mid-career hires, to reflect society's gender ratio of around 50%.
(FYE 3/2023 Result: 39.5%)
ComingTogether

Being
Energized

Connecting

Expanding Growth Opportunities, andAdvancing Planned Assignments and Promotions

No. of Hires by Gender

27.4%
40

106

37.0%

39.5%

60

62

TargetApprox.

50%

Ratio of Women in the Career Track /Ratio of Women in Management Positions
10.8%

102

95

Marubeni received Eruboshi and Platinum
Kurumin certifications from the Minister of
Health, Labour, and Welfare.

6.4%

13.2%

Target Over15%

7.5% 8.2%

Target Over

10%

11.9%

Ratio of Women in
Management Positions

Advancing Planned Assignments and Promotions

2021.32022.3We are setting targets regarding the number and ratio of women at each level in every organizationand establishing a system for planning and implementing measures to achieve these targets.

VOICE

Sharing Experiences and Perspectives

External Training Participation
With the aim of providing growth opportunities that cannot be gained internally and networking
opportunities with female employees from outside organizations, we have sent a total of 64
women to external training programs.
ComingTogether

Being
Energized

Connecting

Fostering Awareness and Corporate Culture
and Strengthening Promotion Systems

Marubeni International Women’s Day (MIWD)
Since 2018, Marubeni has been holding events across theentire Group for International Women’s Day (March 8), a dayof encouragement and support for active working women.

Talent Management Committee
Human capital strategy meetings with the CEO, CAO, CSO, and CHRO as key members areheld to advance overall measures.

Ratio of Women in the
Career Track

No. of Male Hires
No. of Female Hires
Ratio of Female Hires2023.32020.10 2021.10 2022.10

2026.3

Miwa Koga

Eriko Hayashi

Joined Marubeni in 2021 (Career Vision Hire)
Next Generation Business Development Div.
Wellness Business Dept.

2009 Mid-career Hire
Marubeni ASEAN Pte. Ltd. (Singapore)My motto is to work in a waythat delivers smiles while also
enjoying the work myself. While imagining the smilesof customers who pick up our products, I have been
involved in significant work projects, from productdevelopment to marketing and sales, since my firstyear at Marubeni. Marubeni is a welcoming place thatprovides young employees with opportunities to gain
experience and take on challenges, and more veteranemployees provide passionate support.

Other Measures Related to Work-life Management
https://marubeni.disclosure.site/en/themes/27/

Since 2020, I have been seconded to Singapore with my motherand two children, making use ofcompany measures that support
overseas secondments after childbirth*. Marubeni has aworking environment where various types of families andworking styles are respected and supported by anumber of measures and systems, which underscorethe company’s messages about promoting diversity andinclude messages from the CEO as well.
* Measures for employees seconded abroad accompanied onlyby their children, including allowances for accompanying
spouses and assistance towards childcare costs.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

49

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Message from the CDIO

Masayuki Omoto
Executive Officer
Chief Digital Innovation Officer (CDIO), Chief Operating Officer,
Next Generation Business Development Div.

The times are rapidly changing, as seen with the sudden adoptionof generative AI technology around the world. This change
threatens to make existing businesses obsolete while presenting
new business opportunities at the same time. I am confident
that measures we are taking to stay one step ahead of thischange to transform Marubeni into a corporation that is always
fresh and new will become a source of perpetual improvement incorporate value.
The GC2024 Mid-Term Management Strategy covers aperiod of three years for putting strategy into practice. Since
setting up an internal organization dedicated to DX in the fiscal
year ended March 31, 2018, we have continued to implement
basic measures that have brought Marubeni to the stage of taking
new, bolder measures to renew itself.
Marubeni’s DX strategy entails accelerating the strategies ineach business with digital technologies. We formulate strategies
for each business domain, taking into account the threat ofobsolescence due to the emergence of disruptors*, and arecommitted to implementing business strategies through the useof digital technology. As CDIO, I am constantly mindful of 1)
identifying the seeds of change, such as new business models
and new technologies, at innovation hubs around the world for
global comparison, 2) actively adopting cutting-edge technologies
such as generative AI and the metaverse, and 3) maximizing thepower of digital technologies that can be used on-site. We haveestablished our own digital talent development program aimed ataccelerating on-site implementation of this strategy. To date, wehave produced a total digital talent base of 350 people, making
digital a “given” in daily operations.
We will continue to steadfastly implement Horizon 3
initiatives to capture new business opportunities brought about
by the changing times. In the fiscal year ended March 31, 2020,
we established the Next Generation Business Development
Division in Tokyo. In the fiscal year ended March 31, 2023, welaunched the Next Generation Corporate Development Divisionin Singapore and the United States with professional talent.
With these two business divisions starting from scratch, we are
already pursuing the dramatic enhancement of corporate value
through the creation of next-generation businesses with an eye
on 2030. We feel a strong sense of progress on the ground,
where talented personnel and strong teams are in position forthe creation of next-generation businesses.
To deliver “fair” businesses for the next generation, we
believe that making Marubeni “harmonious” with changes of
the times through “innovative” changes to ourselves is theessence of putting into practice “Fairness, Innovation, andHarmony,” our company creed for the next generation.
I hope our supporters raise their expectations as Marubeni
takes a leap forward towards 2030.
* Disruptor: A disruptor is an element or market participant that tears down businessmodels and existing industry order by deploying digital technologies, for example.

DX Strategy
Execute growth strategies by (1) updating and enhancing digital talent base, IT infrastructure, and (2) leveraging necessary digital technologies.
The Marubeni Group encourages vertical evolution and horizontal expansion through its combined business foundation, resources, networks, data and knowledge.

Define specific growthstrategies for each businessdomainWhen executing
growth strategies,• Effectively use digitaltechnologies• Combine resources acrossorganizations(Specific use examples)Set profit improvement strategies for each business domain in different organizations
Horizon 1

Horizon 2

Horizon 3

Improvement of existing businesses

Pursuit of strategies in existing business domains

White Space• Anticipation of the benefit from implementing AI in automated ordering systems• Facial recognition payment platform• Sorting of marine products by grade using AI-powered analysis ofcamera images• Solar panel reuse andrecycling platform• Individual optimization of distribution and vessel allocation plans using
mathematical optimization• Solar power asset trading platform• Determination of normal and abnormal conditions in equipment and machinery• Digital maternal and childhealth handbook• Estimation of causes of anomalies, predictive maintenance• FemTech businesses• Introduction of chatbots using generative AI, etc.

• EV operation optimization business

Leveraging the Marubeni Group’s combined business foundation, resources, networks, data and expertise
SupportFoundation of our
growth strategy

Digital talent base

IT infrastructure

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Marubeni’s System for Promoting Utilization of Digital Technology
The Digital Innovation Office (DI Office), reporting directly to the CDIO, oversees and directs theteams promoting the DX Strategy across the Marubeni Group. It works in partnership withDOLBIX Consulting Inc.*, a DX-based business subsidiary that we set up in 2020. Altogether,
we have a digital talent base of more than 100 people promoting the Group-wide DX Strategy.
Regarding the utilization of digital technology, we provide meticulous support at every
stage, from issue management to business integration, to ensure that projects do not end as
proof-of-concept experiments. We also collaborate with the DX promotion organizations set
up in each division, and strive to solve issues as close to the front lines as possible, providing
support that leads to value creation.
By adopting this promotion system, we have put in place a mechanism that provides
the essential “agility × Marubeni perspective × expertise” needed for the effective use ofdigital technology.
* DOLBIX Consulting: Marubeni sees the many different business domains in which it operates
as rich opportunities to develop DX worldwide. Through engagement with all Group strategic
or technical DX-related projects, from business/IT strategies to system implementation andmaintenance, as a wholly owned subsidiary, DOLBIX provides DX consulting services.

Use of Generative AI— Increasing Work Efficiency with Marubeni Chatbot —The DI Office is leading the development of the Marubeni Chatbot, a generative AI tool
designed by Marubeni. Utilization of this AI tool, which incorporates generative AIs like
ChatGPT, is expected to significantly improve efficiency in document creation andknowledge sharing.
Development of Marubeni Chatbot began in response to the high performance of
ChatGPT (GPT-4), which was released in April 2023. Marubeni Chatbot was rolled out
Companywide in July 2023. This app automatically and instantly responds to users’questions and requests for document creation. As a result, it helps improve work
efficiency by automating tasks that previously required manual labor.
We continue to test Marubeni Chatbot’s ability to respond to a variety of questions

Examples of DX Support by the DI Officeabout information scattered throughout the Company, and to accept input in formats— Building a Facial Recognition Payment Platform —other than text, such as PDF and audio. Various improvements are planned to further

The facial recognition payment system being promoted by the Infrastructure Project Division is
expected to modernize payment methods for railways, buses, and surrounding facilities.
In the DI Office, we are utilizing our expertise in image-related AI, system development, andmarketing to support efforts at commercialization, such as designing services and building
various systems.
Depiction of actual use
Marubeni Facial Recognition Service
Marubeni APP (transportation payment)

General store use(retail, food and beverage, etc.)

When it comes to fare payment, all acustomer has to do is look at the facialrecognition tablet without holding
anything in their hands.

Sports spectator shuttle bus
stadium entry and exit
coordination

Introduction of transport payment
expansion of service to store payments andsurrounding facility usage

enhance work efficiency with Marubeni Chatbot.
Marubeni Chatbot

50

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

51

Corporate Data

Value Creation Model / Strengthening Existing Business Domains / Initiatives to Create Value / 01 Food & Agri: Helena Agri-Enterprises / 02 Food & Agri: Creekstone Farms Premium Beef / 03 Finance, Leasing: Nowlake Technology / 04 Finance, Leasing: Fleet Management Business in North America, Aircastle /05 Renewable Energy: Renewable Energy Generation Business / 06 Resources: Metals Mining Business / 07 Trade / 08 Initiatives for the Next Generation (1): Next Generation Business Development Division / 09 Initiatives for the Next Generation (2): Next Generation Corporate Development Division / 10 New Energy:
Initiatives in New Energy / Business Policies SPP and Marubeni Group Governance Policy / Business Investment Process / Message from the CAO / HR Strategy / Message from the CDIO / Marubeni’s System for Promoting Utilization of Digital Technology / Developing/Upgrading Our Digital Talent Base and IT Infrastructure

Developing/Upgrading Our Digital Talent Base and IT Infrastructure
Developing the digital talent base is one of the keys to the success of our growth strategy. This entails adding skills in Design Thinking and Data Analysis in Data Science, which help
us identify issues and create new value for our customers, to the traditional strengths of Marubeni employees in terms of Business Knowledge. We define our target profile for thedigital talent base in terms of cultivating all three skill sets, and we have accelerated efforts to develop this base.

The Marubeni Digi-Challenge

Internal certifications for digital/DX talent

Since the fiscal year ended March 2021, we have focused especially on the field of Data Science

As of the end of July 2023, at Marubeni headquarters, we had trained more than 350 digital

through the Marubeni Digi-Challenge initiative. This program emphasizes acquiring Data Sciencetalents, i.e., people who can apply their digital skills on the front lines, exceeding our goal of 200

skills via practical, hands-on application rather than theoretical study. Participants use digital

individuals by 2023.

technology such as programming to address real business and operational issues that wesource from Marubeni Group operations worldwide.

In the future, we aim forall employees to acquire basic

From ‘intellectual’ to ‘practical’ engagement

Business
Knowledge

Our Ideal Digital Talent Profile

digital-related knowledge.
Data
Science

DesignThinking

Group companies that are alreadydeveloping digital talents will
accelerate their efforts

Outline of internal certifications for digital/DX talent

Details of Digi-Challenge

Qualification

This practical technology program lasts for several weeks to months, covering specific technologies andtopics, with minimal classroom learning and a focus on hands-on training.

Advanced

Topics and data are taken from actual business cases with an emphasis on practical application.
Courses are segmented by difficulty levels to accommodate a broad range of participants.

Intermediate

Basic

Ability to promote advanced DX strategies
in various fields

Acquire digital technical capabilities and wide rangeof digital knowledge + complete a DX project, etc.

Specialist knowledge, and the ability to promote
DX strategies beyond the organization to which theindividuals belong

Acquire general digital knowledge

Possesses digital knowledge required for business,
can manage DX strategy promotion within own partof the organization

Digi-Challenge: Examples in FYE 3/2023
Area

Main technical area

Optimal vessel

Mathematicaldispatching

optimization

EC site construction

UI*1/UX*2

Simple data analysis

Excel

Capabilities

Acquire advanced digital technical capabilities
and related knowledge + complete multiple DX
projects, etc.

Details
Aim to contribute to revenue by creating mathematical optimization
algorithms and minimizing costs in trading by deploying multiple

Initiatives for Effective Utilization of Digital Talentowned ships
Aim to expand beverage sales by designing and implementing
marketing strategies and building an e-commerce website
Aim for effective credit-setting by building a trading partner sales
forecast model*1. The user interface (UI) mainly refers to the sight of screens by which a user interacts with a computer.
*2. UX stands for “User Experience”: ease of use and other aspects of the experience of a user of a web-based service.

In 2023, we internally launched the Marubeni Digital
Talent Profile website. By making these digitaltalents and their respective skills more visible within
the Company, it has become possible to reach out
to the right person at the right time, facilitating
collaboration across departments.

Marubeni Digital Talent Profile website

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Improvement ofCorporate Value

Sustain and
Improve Cash
Generation

Sustain and
Improve ROE

Reduce Cost of Equity

Initiatives for More Sustainable
Value Creation
In the context of medium-to long-term improvement in corporate value, we
discuss our efforts to reduce the cost of equity along with non-financial initiatives
to enhance sustainability. We also explain our approach to corporate governanceand risk management.

53
57
58
59
60

SECTION

62
63
64
65
68
76

Message from the CFO
Sustainability for the Marubeni Group
The Material Issues for Sustainability (Materiality)
Sustainability Management
Climate Change (Disclosure in Line with the Recommendationsof the TCFD)
Sustainable Forestry
Human Rights & Co-Development with Communities
Sustainable & Resilient Value Chains
Risk Management
Corporate GovernanceCorporate Management

52

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

53

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Message from the CFO
Second consecutive year of record-highprofit achieved by strengthening theearnings base

Growth in non-resources adjusted net profit starting in thefiscal year ended March 31, 2022 was the fruit of thesepatient efforts, which was reflected across a broad range ofbusinesses, not only the U.S. food and agri business where

For the fiscal year ended March 31, 2023, we reported net

we are typically strong, but also in power, infrastructure

profit of ¥543.0 billion, our second consecutive year of

projects, machinery, and finance and leasing. Non-resources

record-high profit. ROE also surpassed 20% for the second

adjusted net profit was ¥320.0 billion in the fiscal year ended

year in a row, and core operating cash flow, which indicates

March 31, 2023, surpassing the ¥300 billion mark for the first

cash being generated by the business, also reached atime. Nevertheless, business conditions for the year benefitted

record-high ¥584.2 billion. We believe ongoing efforts tofrom tailwinds such as higher demand for some products due

strengthen the earnings base have boosted our earnings

to the COVID-19 pandemic and the Russia-Ukraine situation,

capacity to a higher level.

and we gauge our current actual earnings power at aroundI would like first of all to say a word about what I consider

Strategically allocating
cash generated to enhance
corporate value¥250 billion–¥300 billion.

most important: non-resources adjusted net profit*. Until the

Performance in resources is inevitably significantly

fiscal year ended March 31, 2021, non-resources adjusted

impacted by changing commodity prices, but in non-resources

net profit was never able to surpass the ¥200 billion mark.

the impact is small. So long as our businesses are competitive

However, we were making constant progress in setting

and we are able to provide added value, we can secure solid

strategies for expanding the individual businesses andprofit and aim to achieve growth. Our policy is to continue tocarrying out the growth investments needed to achieve this.

strengthen non-resources to enhance corporate value and grow

* Adjusted net profit: Net profit excluding one-time items, shown in an approximate figure.

Adjusted Net Profit

Takayuki Furuya(Billions of yen)

489.0

Non-resources

526.0
440.0

Resources

Senior Managing Executive Officer, Member of the Board

Consolidated total

197.0

CFO; Chief Operating Officer, Investor Relations and Credit Ratings;
Chairman of Investment and Credit Committee; Chief Sustainable
Development Officer (CSDO); Chairman of Disclosure Committee

225.0

243.0

61.0

66.0

172.0

178.0

2020.32021.3

420.0

199.0

296.0

320.0

2022.32023.3

162.0

150.0

277.0

270.0

2024.3
Forecast

2025.3
TargetMARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Message from the CFO
profits over the medium to long term, and we consider the KPI

Gavilon’s grain business used a lot of working capital; thus, infor this to be non-resources adjusted net profit.

addition to recovering approximately ¥330.0 billion, the disposal

Implementing a progressive dividend
policy, announcing a new shareholder
returns policy

In resources, improved commodity prices acted as aalso had the effect of reducing net interest-bearing debt by

tailwind, but our efforts to date to reinforce our various business

about ¥500 billion (including the reduction in working capital)bases were what allowed us to maximize the margin of profit

compared with the end of March 2022. We believe this was

In February 2023, we announced a new shareholder returns

growth. One example is energy trading. We excel in the global

a smart move, as we not only improved the financial foundation

policy and succeeded in expanding returns to shareholders.

trading of grains and chemicals and other products, but also

but also repaid a large amount of U.S. dollar-denominated debt,

When we unveiled GC2024 in February 2022, in addition tohave strengths in energy trading, including LNG, crude oil, andwhich allowed us to avoid a substantial rise in interest payments

a dividend policy for a consolidated dividend payout ratio of

petroleum products. To enhance our role in filling global supply

as a result of higher interest rates.

25% or more, we set a floor for annual dividends of ¥60 per

As of the end of March 2023, our net debt-to-equity

share over the three years of GC2024. In other words, if we saw

customer bases and procurement and logistics bases inratio was down to 0.52x. Recognizing the improvement ina jump in profits in a particular year, we could raise the dividend

locations around the world. Over the last few years, theour earnings base and financial foundation, since the fiscalthat year, but could potentially reduce it the following year up to

COVID-19 pandemic and the Russia-Ukraine situation haveyear ended March 31, 2023, all four agencies that rate us

the lower limit. Under our new shareholder returns policy, we

increased energy supply and demand gaps, creating more

(Moody’s, S&P, R&I, and JCR) have upgraded our credit

have switched to a progressive dividend policy for the period ofopportunities to draw on these bases to play an active role

ratings. We are now in the best financial shape we have

GC2024, under which we will not lower dividends from thein supply, feeding into significant growth in profit.

ever been. Amid rising interest rates and risk premiums,

fixed point of its record-high ¥78 per share. We have also set

we have reached a rock-solid financial foundation free ofthe total payout ratio at around 30%–35% of profits, including

funding concerns.

dividends and share buybacks. Our rationale for introducing theand demand gaps, for a long period of time we have built up

Our GC2024 Mid-Term Management Strategy targets
adjusted net profit of ¥420.0 billion for the fiscal year ending
March 31, 2025, and we have been making steady progress

progressive dividend policy was our desire, in an extremely

toward this target. We will not be content with simply achieving

uncertain global business and economic environment involving

this target, however. Rather, we will aim for growth in profit overthe longer term by continuously enhancing the earnings base.

Sale of Gavilon’s grain business andimproving credit ratings to prepare for U.S.
dollar interest rate hikes
One assumption when drafting GC2024 was that thehighly volatile commodity prices, to promise to keep a stable

Credit rating upgrades by major rating agencies

dividend for shareholders. We also think a stable dividend cansince April 2022

help us lower the cost of equity over time.
JCR

R&I

S&P

Moody’s

2022, buying back a total of ¥60.0 billion in shares for the fiscal

AA/Aa2
AA-/Aa3

We carried out share buybacks for the first time in February

Upgradeyear ended March 31, 2023. Going forward we will continue toUpgradeconsider carrying out share buybacks in a flexible manner to

A+/A1

contribute to enhancing corporate value, while keeping in mind

normalization of an ultra-accommodative monetary environment

A/A2

the need to maintain and improve ROE, improve per-share

would cause interest rates to rise and bring back risk premiums

A-/A3

metrics (EPS/BPS/DPS), and foster enhanced supply andthat had been at low levels. Subsequently, interest rates in the

BBB+/Baa1

U.S. did in fact start to rise, but in October 2022 we were able
to sell the grain business of Gavilon Agriculture Investment, Inc.
in a timely manner and repay a significant portion of debt.

BBB/Baa2
BBB-/Baa3

UpgradeUpgradedemand dynamics for Marubeni shares. As we do so, we willtake account of the progress of new investments, as well as
the state of cash flow and the balance sheet in terms ofshareholders’ equity and the net debt-to-equity ratio.

54

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Message from the CFO
debt repayment, but our highest priority at present is growthinvestments. Enhancing shareholder returns is also an important

Progressive dividend policy
Consolidated dividend payout ratio of “25% or more”

Total payout ratio: around 30%-35%
543.0

Net profit (Billions of yen)
Annual dividend per share (Yen)
Total amount for annual dividend(Billions of yen, resolved amount)
Total amount for share buybacks(Billions of yen, resolved amount)

424.3

230.9

31

34

Progressive dividend:
Initially set at 78 yen per share asan annual dividend

60.0

33
30.0

23
39.9

2017.3

53.8

2018.359.0

2019.360.8

2020.357.3

2021.3107.2
2022.3-197.5

GC2018130.0levels. We want to further enhance shareholder returns as we
make headway in these areas. Naturally, we do not blindly makegrowth investments: we will proceed while maintaining ouremphasis on investment discipline.

78

223.3
35

Dividend increase in
response to medium-and
long-term profit growth

420.0

62

155.4

that are feasible at this point into our new policy, so the next
step is to further reinforce the earnings base and raise profit

78

211.3

goal, and we believe we have incorporated shareholder returns

Initiatives to widen equity spreads
To enhance corporate value over the longer term, GC2024

Flexible share buybacks
to be carried out

calls us to sustain and improve cash generation, sustain andimprove ROE, and reduce cost of equity. As I mentioned at
the beginning, with record-high profit in the fiscal year ended

133.0

March 31, 2023, we made good progress in sustaining and2023.32024.3
Forecast

2025.3

improving cash generation and ROE. We were also able totake certain measures to enhance the financial foundation,
receive upgraded credit ratings, and reduce the cost of

GC2021

GC2024

equity by stabilizing dividends. As a result, our share pricereached a new record high by a wide margin on the back ofhighly favorable performance. This was just a waypoint on

Strategic capital allocation under GC2024

our journey to greater corporate value, however. Going
Currently, our approximately ¥8 trillion in total assets
generates about ¥500 billion in cash (core operating cash flow),

forward, we will continue to steadfastly carry out what isneeded to enhance corporate value.

The business model of a general trading company is to cultivate

which funds capital allocation every year. As of March 2023,

First, we will continue to enhance our earnings base tostrong operations with a business portfolio that meets thewith the proceeds of the sale of Gavilon’s grain business andsustain and improve cash generation and ROE. In additionneeds of customers and society, generate cash, apply that cash

accumulated cash generated by our businesses, we have an

to creating new business models and strengthening our

to further growth and shareholder returns, and via this cycle toadditional ¥550.0 billion or so of what we call free cash to fundexisting businesses via growth investment, upgrading andenhance corporate value. The mission of the management

capital allocation, giving us an extremely high degree of freedom

recycling assets is essential. We monitor the earnings baseteam, including the CFO, is to consider the strategic allocationin allocation. Our policy is to enhance growth investments andusing ROIC/CROIC/RORA to regularly confirm capitalof capital to this end.

shareholder returns while allocating a portion of our free cash toefficiency and risk-return efficiency. If there are issues, we run

55Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Message from the CFO
a PDCA cycle to take response measures and makedistinctive, outstanding portfolio even now, but will continue

consider both opportunities and threats together.

improvements. To maintain ROE of 15%, a key target, weto enhance the portfolio even further.

Thus, working now on greening in all business domains is

carefully shape a response for each asset, and consider

There are no shortcuts for reducing the cost of equity,

extremely important. Moving forward with greening builds

strategic divestment for any businesses that show signs ofand going forward we must continue to take steady measuresconfidence in our supply chains, products, and services

peaking out. The business portfolio contains numerous

to optimize financial leverage, reduce performance volatility,

among society and customers. At the same time, we wanthighly competitive businesses, and we have a good profit

and enhance sustainability and other non-financial value toto take the lead in businesses generating added valuebalance whereby over half of profit is generated bylower the beta of our stock. We have made great strides infrom greening and bringing about innovation. We have

non-resources. In addition, we have multiple core group

improving performance volatility compared with previous years

planted deep roots for green thinking in our company thatcompanies in the U.S.; this region generates about 30% of

by enhancing asset quality. We will continue efforts to further

will tie into a more thorough consideration of customer

net profit for the group overall, and we can say that the

improve cash generation so that our shareholders will lookneeds, economic value, and enhancing our earnings basegeopolitical risks are also low. We believe we have aforward to continued profit growth.

for the future.
We have established a promotion framework and risk
management methods for building sustainable and resilient

Medium- to Long-Term Enhancement of Corporate Value

supply chains and engaging in business activities withrespect for human rights. While continuing to run PDCA
cycles in these areas, we will also evolve the initiatives by

Sustain and Improve Cash Generation

Sustain and Improve ROE

Reduce Cost of Equity

continuing to broaden the scope of engagement in our
supply chains. We maintain an MSCI ESG top rating of AAA

Continuous strengthening of earnings base
Improve capital efficiency

Strategic capital allocation

Promote “Green Strategy”

Optimize financial leverage
Reduce performance volatility
Improve non-financial value

for our sustainability-related initiatives. Amid the overarching
trend for society as a whole to shift toward greater sustainability,
we will continue to work to increase our sustainability by
expanding our growth potential and simultaneously mitigatingrisk, while identifying opportunities and threats, working withour customers and partners with a sense of urgency.

Leading the way in making societysustainable, engaging customers andpartners, and becoming a forerunnerin green businesses

Environmental and Social Materiality* at the Group-wide* Climate Change, Sustainable Forestry, Human Rights & Co-development withlevel (see p. 58). Each segment itself also pursues green

Communities, and Sustainable & Resilient Value Chains.

strategies to reinforce environmental and social materiality
initiatives as well as the simultaneous pursuit of economicand environmental and social value.

As measures to increase the sustainability of operations andOur green strategies include expanding green businesses

reduce cost of equity, sustainability initiatives are also one ofand greening in all business domains. Expanding green

my key tasks. Our Sustainability Management Committee

businesses is important from the point of view of capturing

spearheads initiatives to address our four categories of

emerging opportunities, but over the longer term we have to56

Value Creation at Marubeni

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Initiatives for More Sustainable Value Creation

Business Portfolio

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Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Sustainability for the Marubeni GroupFor the Marubeni Group, sustainability is about putting our Management Philosophy

Identification and Review Process of Materiality

into practice by anticipating environmental and social demands and then proactively

We believe that the material issues for sustainability (materiality) must be constantly reviewed as theproviding solutions. We identify three categories of Fundamental Materiality relating tosociety and environment surrounding the company continue to change. Specifically, we performthe creation of environmental and social value. Building on Fundamental Materiality,

regular reviews through dialogue with stakeholders and confirmations of the expectations from society,we also identify four categories of Environmental and Social Materiality.

as well as constantly analyzing the impact on the Marubeni Group.

Marubeni Group’s Sustainability Conceptual Diagram
Identification and Review Process

Selection and prioritization of issues
Proactively Engaging inEnvironmental & Social
Issues and Challenges

Company Creed

Environmental & Social Materiality“Fairness, Innovation, and Harmony”

Building a Better<Management Philosophy>

Tomorrow

Fundamental Materiality

Human Capital withHigh Social Value
Robust Management
Foundation

Put the Management Philosophy into PracticeIn accordance with the spirit grounded in “Fairness,
Innovation, and Harmony,” the Marubeni Group is proudlycommitted to social and economic development andsafeguarding the global environment by conducting fairand upright corporate activities.

Analysis and consideration of the
impact on the Marubeni Group

Customers and business partners
Shareholders and investors
Local communities
Employees

Dialogue with experts
Expectations from NGOs/NPOs
Requests from rating companies andresearch organizations
Grasp international guidelines and thetrends of each country and industry

Company Creed, Management Philosophy
Management plan
Business growth and continuity potential
Risk management
Strengthening of legal regulations, etc.
Creation of new business

Extract existing/potential environmental and social issues

Human Rights &Co-development with
Communities

Identify material issues for sustainability for the
Marubeni Group

Approve

Importance to stakeholders
Impact and scope of our business activities on the environmentand society
Impact on our earnings

Governance for Coexistencewith Society

What is Sustainability for the
Marubeni Group?

Confirm expectations
from society

Climate Change

Sustainable &Sustainable Forestry
Resilient Value Chains

Delivering Solutions
through Innovation

Dialogue withstakeholders

Maximize corporate value
through the pursuit ofenvironmental and social value

Reflect in operational goals/targets, implement and review periodicallyFinancial value

Annual review

Non-financial value

Board of Directors
Corporate
Management
Committee

Instruct/Advise
Report result

Sustainability
Management
Committee(Directed by the
President and CEO)MARUBENI CORPORATION INTEGRATED REPORT 2023

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Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

The Material Issues for Sustainability (Materiality)
The Marubeni Group is taking multi-layered initiatives for each materiality. By deepening and expanding our efforts in each category of Environmental and Social Materiality, we aim
to realize sustainable value creation as the entire Group engages in nature positive business activities. We will contribute to the economic and social development, as well as theconservation of the global environment, in line with our management philosophy.
Environmental & Social Materiality

Marubeni Group Initiatives
Halve net generation capacity in coal-fired power generation business (by 2025)

Climate Change

Expand ratio of power generated by renewable energy sources to approximately
20% (by 2023)
Net-zero GHG emissions by 2050
— Action Plans towards 2030

P.60

Sustainable Forestry
P.62

Human Rights & Co-developmentwith Communities
P.63

Operation of afforestation projects in Indonesia and Australia (totaling about
130,000 hectares)
Aim to increase carbon dioxide sequestration of afforestation projects and create
negative emissions
Formulate and disclose our human rights policy, disseminate it to and ask for thecooperation from relevant business partners

P.21 Green Strategy

Initiatives in renewable energy businessInitiatives in new energy businessInitiatives in battery-related business
Offer various low-carbon products
Maximize value of forest resources— Maximize economic value through material utilization— Pursuit of environmental value with an eye on the trading ofemissions credits
Domestic packaging goods manufacturing and sales business

Establish and implement a human rights due diligence process

Conduct human rights investigations in collaboration withindependent external investigative bodies aimed at eliminating
forced and child labor

Establish and operate a grievance mechanism (redress) (develop internal process
and establish a dedicated contact point)

Establish a process to assess human rights issues targeting new
suppliers in high-risk sectors

Sustainable &Reinforce sustainability of Group companies, the “starting point” of the
supply chain

Resilient Value Chains

Conduct surveys on Tier 1 suppliers in stages
Formulate procurement policies for individual commodities

P.64

Examples of Green Strategy

Thorough quality control framework and support for suppliers intrade activities(Example: Sustainability coffee initiatives)
Expand handling of certified products
Establish and strengthen traceability

Fundamental Materiality

Human Capital withHigh Social Value

The source of value creation for the Marubeni Group lies in its human capital and every employee’s foresight, ability to anticipate andself-transform to proactively provide advanced solutions for environmental and social issues.

Robust Management Foundation

In addition to the credibility and business foundation we have built through our business activities, and the financial foundation that
supports our operations, our corporate climate and culture, which cultivates our value-creating abilities, also serve as a foundation
for innovation at Marubeni.

Governance for Coexistencewith Society

By deepening engagement with diverse stakeholders, enhancing the effectiveness of the supervisory functions of the Board of
Directors and improving the transparency of management, we aim to build a governance system that coexists with society while
striving to realize sustainability.

P.41 HR Strategy

P.53 Financial Strategy(Message from the CFO)
P.41 HR Strategy

P.68 Corporate Governance
P.59 Sustainability Management

MARUBENI CORPORATION INTEGRATED REPORT 2023

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Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Sustainability Management
GovernanceOur governance structure ensures adequate Board supervision of important sustainability-related
issues (policy, targets, action plans, etc.) for the Marubeni Group, which are deliberated and decided
by the Corporate Management Committee and the Board of Directors. In the fiscal year ending March
31, 2024, we have revised the compensation system for directors. In the individuals’ qualitativeevaluation, we consider contributions to the plans and efforts related to sustainability measures
including the Green Strategy, etc. We are advancing efforts to enhance linkage with director
compensation to medium- to long-term corporate value.
The Sustainability Management Committee, which reports directly to the President, holds
discussions about a broad range of matters related to sustainability. With regard to climate change,for example, it leads the process of evaluating opportunities and risks as identified in our TCFD*1
climate-related disclosure; formulating, revising and monitoring strategy, risk management, metrics
and targets; and reviewing progress in climate-related innovation and changes in the external
environment. The committee deliberates and reports regularly (at least once a year) on these mattersto the Board of Directors. In the fiscal year ended March 31, 2023, the Sustainability Management
Committee was held three times and discussed the Mid-Term Management Strategy (GC2024 andthe Green Strategy) and TCFD disclosures.
The Chief Sustainable Development Officer (Member of the Board) chairs the Sustainability
Management Committee. Outside Officers are also members of the committee in an advisory role tosupport the management and supervision of sustainability-related matters from an independent
external perspective.
*1. The Task Force on Climate-related Financial Disclosures

Sustainability Management Organization
Planning, reporting, approval

Board of Directors
President and CEO
Sustainability Management Committee

Discusses basic policies and other matters pertaining to sustainability
Committee head: Chief Sustainable Development Officer
Advisors: Outside Officers

Environment Committee
Business Divisions

Business Divisions
Sustainability Leaders

Sustainability Management
Department

Corporate Staff Group

Domestic and Overseas
Branches & Offices

Corporate Staff
Group Departments

Domestic andOverseas Branches& Offices

Sustainability Leaders

Business
Departments

Sustainability Leaders

Sustainability Managers

Risk Management
The Marubeni Group manages and monitors climate change-related and other opportunities
and risks that are highly important from the perspective of sustainability by the Sustainability
Management Committee.
The Marubeni Group is assessing potential risks in business from a sustainability perspective.
We have developed an assessment framework to support the multifaceted analysis of 27 items acrossthe three risk categories of environmental, health and safety, and social. In addition, we assess theimportance and impact of potential risks in each assessment category. We use this risk assessment
approach in sustainability survey methods for the Group and our suppliers. It is also part of the processused to make any investment and financing decisions. Besides monitoring existing businesses, we use
this approach to gauge the value of Group businesses on an ongoing basis from a sustainability
perspective. Whenever necessary, our business domains identified as high-risk are deliberated by theInvestment and Credit Committee, the Corporate Management Committee, and the Board of Directors.
For these risk management systems*2, we review basic internal control policy every year and report thestatus of operation in the previous fiscal year to the Board of Directors, evaluating their effectiveness.
*2. P.65 Risk Management

Execution

Risk assessment items by category (27 items across 3 categories)
Environmental
Health and
SafetyClimate change / environmental pollution / bio-diversity / resource management /mitigation measures and administrative procedures (environmental)
Machine safety / fires and explosions / toxic substance exposure / infection / hazardous
operations / mitigation measures and administrative procedures (health and safety)
Forced labor and human trafficking / child labor / working hours / wages andemployment contracts / discrimination / harassment at work and disciplinary

Socialmeasures / respect for diversity / freedom of association and the right to collective
bargaining / land issues / negative social impact on local communities / indigenous
peoples and cultural heritage / conflict minerals / privacy / animal welfare /responsible marketing / mitigation measures and administrative procedures (social)

MARUBENI CORPORATION INTEGRATED REPORT 2023

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Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Climate Change (Disclosure in Line with the Recommendations of the TCFD)
The Marubeni Group recognizes climate change as a global and highly urgent social issue, and identifies it as one of its Environmental and Social Materiality issues. In February 2019,
the Marubeni Group affirmed the TCFD recommendations, striving to anticipate shifts in society linked to climate change and to create growth opportunities while mitigating related risks.
We will consider alternatives, including exiting a sector, in cases where Marubeni Group businesses are expected to face obsolescence or downward earnings pressure due toclimate change. We see appropriately scaled and timed revisions to our business portfolio as supporting the growth in corporate value over time.

Strategy
The Marubeni Long-Term Vision on Climate Change

Scenario Analysis

The Marubeni Group disclosed the Long-Term Vision on Climate Change in March 2021.

We identify businesses with a relatively high degree of impact on the Marubeni Group in terms of

Our long-term vision envisages two pillars: first, to achieve net-zero GHG emissions by the Marubeni

asset and earnings scale, and the likelihood of being affected by climate change. In line with TCFDGroup; second, contribute to the transition to a low-carbon or decarbonized society through businessdisclosure recommendations, considering related business conditions under baseline and transition

activities. By proceeding with both at the same time, we aim to generate a positive impact on climate

scenarios, we perform scenario analysis of risks, opportunities and earnings impact through 2030

change and grow as a corporate group. In our GC2024 Mid-Term Management Strategy announced

using a time horizon to 2030.

in February 2022, we formulated our Green Strategy*1 to further materialize our positive impact.

The highly diversified nature of the Group’s business portfolio provides a high degree of resilience
to climate change. While the potential impacts on the Group’s finances due to the risks within specific*1. P.21 Green Strategy

industries or businesses are expected to be limited, we will continue to improve risk management on
an ongoing basis and further increase our resilience to climate change.

The ideals that Marubeni Group aims for: Net Positive

To generate a positive impact on the climate change and grow as a corporate group

Business selection for scenario analysis:(1) Achieve net-zero GHG emissions
by 2050(2) Contribute to low-carbon/decarbonization
through our businesses

Businesses in the upper-right quadrant of the matrix shown below are

Net ZERO Emissions

Positive Impact

Halve the CO2 emissions of FYE 3/2020, about one
million tons of CO2, emitted by Marubeni and its
consolidated subsidiaries (Scope 1 and Scope 2)
Reduce by one-fifth the CO2 emissions of FYE
3/2020, estimated about 36 million tons of CO2,
emitted by associate investees of the MarubeniGroup (Scope 3, Category 15 (Investments))

Energy supply

Energy demand

Energy systems to serveas the foundations for adecarbonized society

Control/abate GHG
emissions over a broad
range of industries

Crossvalue
Maximization ofvalue created bycoupling knowledge

Accelerate our goal of cutting FYE 3/2019
coal-fired power net generation capacity in halfby 2030 to 2025, aim for zero capacity by 2050
Expand the volume of carbon stocks in ourforests and expand the sequestrated volume ofcarbon through the multi-purpose utilization ofafforested assets*2
Try to abate our FYE 3/2020 emissions by one-fifth over the
total scope covered by our net-zero GHG emissions goal

Land use
Sustainable agri-inputs businesses andforest management
Formulated our “Green Strategy” to materialize our initiatives togenerate positive impact and improve corporate value in
Mid-Term Management Strategy GC2024*2. Estimated volume of carbon stocks will be about 19 million tons of CO2 equivalents by 2030.

Horizontal axis
Vertical axis

Degree of impact on Marubeni Group

Action Plans towards 2030

selected for the scenario analysis.

Businesses selected for scenario

Business domains with high financial impact due
to climate change
Degree of impact on Marubeni Group (scale ofassets/earnings, etc.)

analysis using process outlined on left
Power generation
Energy resource investment(oil/gas/LNG)
Alternative energy
Coking coal mine investment

High-impact

Iron ore mine and copper minebusinesses

investment
Aircraft leasing (Aircastle)
Ship
Agri-inputs (North America)
Forestry
P.106 Scenario Analysis of Climate
Change Risks and Opportunities in Line
with the TCFD Recommendations

Impact of climate change on industry

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MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

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Business Portfolio

61

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Metrics and Targets
Climate Change-Related Metrics and Targets

Initiatives for Coal-fired Power Generation Business

The Marubeni Group has formulated the following metrics and targets as part of our response to theopportunities and risks associated with climate change.

In September 2018, Marubeni announced business policies
in relation to the coal-fired power generation business, andannounced it would not engage in any new coal-fired power
generation projects.

Group’s coal-fired power
net generation capacity
Approx. 3GW

We will continue to consider our management policies

Metrics and targets

Results

regarding coal-fired power generation projects that havealready been contracted to fulfill our responsibilities to host

1. Cut Group’s coal-fired power net generation
capacity from FYE 3/2019 value of approx. 3GW
in half by 2025, with further abatement to approx.

countries and other stakeholders. At the same time, we will

Approx. 2.4GW (as of March 31, 2023)

Cut in half
Approx. 1.3GW

accelerate our decarbonization process by contributing toenergy policies of host countries aimed at achieving
decarbonization.

1.3GW by 2030, and aim for zero capacity by 2050

We expect to achieve our reduction targets for net power

2. Expand the ratio of power generated by renewableenergy sources in Group’s own net power supply
to approx. 20% by 2023
3. Expand “Green Revenue” to around ¥1,300
billion by FYE 3/2024

Approx. 21% (including seabed leasing rights forgeneration capacity in accordance with the completion of

the development of the ScotWind project)power purchase agreements.

(as of March 31, 2023)
Approx. ¥1,080 billion (FYE 3/2023)

By 2030:
approx. 1.07 million t-CO2 (FYE 3/2023)(2) Reduction of 20% in Scope 3 CO2 emissions(2) Scope 3 CO2 emissions (Category 15: Investment):(Category 15: Investment) from FYE 3/2020

approx. 22 million t-CO2

million t-CO2*2)*1. Includes Scope 1, Scope 2, and Scope 3 (Category 15:
Investment) emissions*2. This emissions volume comprises the FYE 3/2020 performanceof existing investees plus the estimated emissions from projects
already contracted as of March 2021 (as for power generation
projects, projects for which associate investees of the MarubeniGroup have entered into power purchase agreements but have
not yet achieved the commercial operations)

2025

2030

2050

Other

(1) Reduction of 50% in Scope 1 & 2 CO2 emissions (1) Scope 1 & 2 CO2 emissions:level (estimated CO2 emissions about 36

2018

Approx. 16% (excluding the project)

4. Achieve net-zero GHG emissions*1 by 2050

from FYE 3/2020 level (about 1 million t-CO2)

0

Breakdown
Power generation*3

approx. 19 million t-CO2

Resource projects

approx. 2 million t-CO2

Other businesses

approx. 1 million t-CO2(FYE 3/2023)*3. Results exclude estimated emissions from projects that haveentered into power purchase agreements but have not yetachieved the commercial operations. Actual emissions after
the commencement of commercial operations are reflected
in results.

1 Internal Carbon Pricing (ICP)
On considering the potential impact from a carbon tax on its businesses and carbon prices in the
trading of emissions credits, the Marubeni Group is quantifying and visualizing the impact of GHG in
the future based on estimates of GHG emissions and the price of emissions credits (EU ETS*4, etc.)
when investment and financing projects are submitted for approval (average annual price of carbon
was about €80/t-CO2 using estimates for the fiscal year ended March 31, 2023).
2 Green Bonds
In September 2021, Marubeni issued a total of US$500 million in senior unsecured bonds
denominated in U.S. dollars due 2026. These bonds are green bonds, where the funds raised havebeen allocated to businesses to help solve environmental problems. The bonds were issued*5 to raise
funds for advancing efforts toward low-carbon and decarbonization through our business activities.
3 Directors’ Compensation from the Fiscal Year Ending March 31, 2024
In the fiscal year ending March 31, 2024, we have revised the compensation system for directors.
In the individuals’ qualitative evaluation, we consider contributions to the plan and efforts related tosustainability measures including the Green Strategy, etc. We are advancing efforts to enhance linkage
with director compensation to medium- to long-term corporate value.
*4. EU Emissions Trading System.
*5. Green Bondhttps://marubeni.disclosure.site/en/themes/35/

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Sustainable Forestry
The Marubeni Group currently owns around 130,000 hectares of tree plantations across the world (total gross project area: around 300,000 ha). Using sustainable forestry
management methods, we recognize contribution to conservation of forestry resources as one of our Environmental and Social Materiality issues.
We strive to create value by addressing social issues, based on the supply of sustainable forestry resources that meet the needs of consumers and business partners. We also aim tocontribute to the establishment of a circular economy by fostering innovation in the utilization of forest resources.

Forest Management Policy

We formulated the Forest Management Policy to drive our commitments to sustainable forest
management and the protection of forests with high conservation value in our business activities.

Procurement Policy(Forest-derived Products)

We formulated the Product Procurement Policy to promote the procurement of timber and related products
produced from appropriately managed forests, thereby realizing the sustainable use of forest resources.

Sustainable Forestry
https://marubeni.disclosure.site/en/themes/16/

PT. Musi Hutan Persada (MHP)

Create Negative Emissions in Forestry Business1

Initiatives to expand the volume of carbon stocks in existing forestry resources

Conclusion of a strategic partnership agreement for an afforestation project in Indonesia, Nippon

Forest Management and Forestry Certification at Marubeni Group
Group company

Initiatives to Expand the Volume of Carbon Stocks andLocation

Nature of business

Forestry certification

Indonesia

Forest plantation businessIndonesian Forestry Certification Cooperation*1
Sustainable Forest Management certification

Paper Industries Co., Ltd. and PT. MHP, a Group company that operates plantation business
Under the terms of the agreement, Marubeni is improving forest stock per unit area at MHP’s
forests through provision of support and guidance on Nippon Paper Industries’ proprietary forestry
technologies, including genetic analysis technology and breeding/propagation technology.

FSC® certification*3
WA Plantation Resources Pty., Ltd.
(WAPRES)

Australia

Forest plantation/
wood chips production
business

FM (Forest Management) certification
CoC (Chain of Custody, processing/distribution
processes) certification

2

Consider projects for forest-derived negative emissions

Responsible Wood*4

Indonesia/PT. TEL decarbonization projects

Sustainable Forest Management certification

We are working on the joint development of a wide range of decarbonization projects, including a

Initiatives toward Forest-derived Products (Supplier Due Diligence)

biomass-derived carbon capture and storage business generated by PT. Tanjungenim Lestari Pulp andPaper (PT. TEL), a Group company that operates pulp manufacturing business in Indonesia, theIn the supplier survey conducted in the fiscal year ended March 31, 2023, we selected eightso-called Bio-Energy with Carbon Capture and Storage, or ‘BECCS,’ project, the creation of carbon

companies in the Group’s supply chain for timber and related products based on certain quantitative

credits, and biomass resource utilization.

and qualitative criteria and conducted written surveys at those companies. No issues were identified
within the scope of the survey. Procedures were reviewed at the end of the survey process as part of acontinuous PDCA improvement cycle to enhance the effectiveness of the survey.
Due Diligence FlowFirst stage of DD: Internal preliminary survey
Suppliers that could not be identified as having no major problems

Second stage of DD: Sustainability questionnaire survey
Suppliers that could not be identified as having no major problems

Identificationof risk

When measures tomitigate risk are confirmed

Third stage of DD: Detailed on-site inspection
When measures to mitigate risk
cannot be confirmed
Consider reevaluating transaction

We have begun to consider an industrial and environmentally conscious afforestation projects throughreforestation with an eye to expanding the market as a result of the development and spread of theforest-based carbon credit system, and we plan to explore the use of forest funds in the future. We are

Identification of suppliers withno major problems
Identification of suppliers withno major problems

Consider forest management and afforestation projects aiming for carbon dioxide sequestration

advancing efforts with the intention of establishing a carbon credit program entailing the sequestrationof carbon dioxide in forests located in the Philippines and Angola.
Survey completed(Products are determined
to be usable)*1. Indonesian Forestry Certification Cooperation is a forest certification system in Indonesia endorsed and mutually recognized under
the PEFC*2.
*2. The Programme for the Endorsement of Forest Certification (PEFC) is an international system for forest certification that is based on aframework for mutual recognition of national forestry certification schemes. (PEFC/31-32-80)*3. The Forest Stewardship Council® (FSC®) is a non-profit organization that operates an international forest certification scheme with theaim of promoting the worldwide adoption of responsible forest management practices. (FSC® C016260)*4. Responsible Wood is an Australian forest certification scheme endorsed and mutually recognized under the PEFC*2.

62

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Human Rights & Co-Development with Communities
The Marubeni Group respects the human rights of stakeholders who are related to the Marubeni Group’s business and closely monitors relevant circumstances.
The Marubeni Group identifies “Human Rights & Co-Development with Communities” as one of its Environmental and Social Materiality issues. At the same time, respect forhuman rights in business is the premise upon which we are advancing our Green Strategy in GC2024.
Marubeni Group Basic Policy on
Human Rights

Marubeni Group Basic Policy on Human Rights incorporates three basic principles from the UN
Guiding Principles on Business and Human Rights, namely: 1) respect for human rights, 2) due
diligence on human rights, and 3) redress.

Respect for Human Rights
https://marubeni.disclosure.site/en/themes/21/

Supply Chain (New)For prospective suppliers with whom we plan to start doing business (limited to certain high-risk
sectors, products, and geographies), we confirm the absence of human rights issues, while using
external expertized databases.
3

Supply Chain (Existing)
We have identified the elimination of forced labor (including slave labor) and child labor in the supply
chain as priority human rights issues that require immediate actions. We conduct investigations using
the following methods (these investigations are carried out in collaboration with independent external(third-party) investigative bodies that have specialized expertise).
4

Establishment of Human Rights Policy and Enhancing
Understanding of This Policy
Recognizing the utmost importance of respecting the human rights of all individuals affected by ourbusiness activities and to make every effort to fulfill this responsibility, we have established the MarubeniGroup Basic Policy on Human Rights based on the UN Guiding Principles on Business and Human
Rights. To ensure the dissemination of this policy, we are raising awareness, constantly engaging in
dialogues and visiting with approximately 23,000 suppliers, striving to foster a shared understanding ofrespect for human rights and cultivate a foundation for cooperative action. Through continuous training,
we are also raising awareness within the Company about respect for human rights.

Establish and Conduct Human Rights Due Diligence
Marubeni has established a framework for human rights due diligence that reflects dialogues withexternal experts and diverse stakeholders, based on the UN Guiding Principles on Business andHuman Rights, the International Labor Organization (ILO) Declaration on Fundamental Principles andRights at Work (including the five categories of fundamental principles and rights at work), and theOECD Guidelines for Multinational Enterprises and Due Diligence Guidance for Responsible BusinessConduct, ISO 26000, SA8000, etc.
Business (New)We have established internal procedures for new investment and financing projects to assess the riskof human rights violations and confirm whether any human rights issues exist.
1

2 Business (Existing)Through written survey of all consolidated subsidiaries and on-site inspections, we haveassessed the risk of human rights violations and confirm whether any human rights violations(incidents) had actually occurred. Subsequently, we continue to investigate any changes inbusiness conditions and circumstances that could affect our risk assessments. Based on thoseinvestigations, we confirm whether additional controls have been implemented accordingly andprovide support and advice for improvement.

( i ) Identification of our Salient Human Rights Issues through the Identification of Significant Risks in the Supply Chain
Identification of the elimination of forced labor (including slave labor) and child labor as salient human rights issues that
our company should address as a priority( ii ) Review of Sector, Product, and Geographic as well as Enterprise-Level Risks(Prioritization of Sectors, Products, Geographies, and Stages in Trade-Flow as Subjects for Investigation)
We determine the priority areas for investigation during each fiscal year based on various international indicators, statistics,
etc. (such as those listed below), as well as relevance to our company and the potential for effective corrective action
(a)
(b)
(c)
(d)
(e)
(f)
(g)

Risk sectors designated in the draft EU Corporate Sustainability Due Diligence (CSDD) Directive
EBRD’s categorization of risk by sector
Sectors investigated by international human rights NGOs (such as CHRB and KnowTheChain)
US Department of Labor’s “List of Goods Produced by Child Labor or Forced Labor”
List of prohibited and restricted items published by US Customs and Border Protection
Modern slavery statistics (Global Slavery Index)
UNICEF child labor statistics( iii ) Desktop Research
Conduct investigations based on publicly available
information, in collaboration with external investigative
bodies that have specialized expertise( v ) Remediation Measures and Requests for
Improvement (if necessary) based on Results ofInvestigations, as well as Evaluation of Effectivenessand Selection of Subsequent Subjects for Investigation( iv ) On-Site Investigations (Additional Investigations)
Conduct additional investigations (on-site visits or site inspections) for specific suppliers where risk indicators are identified
through desktop research

Grievance Mechanism (Redress)
In line with the Marubeni Group Basic Policy on Human Rights, we have instituted an internal process
and a dedicated contact point that serves as a grievance mechanism (redress) related to human rights,
and continue to maintain its operation.

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MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

64

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Sustainable & Resilient Value Chains
The Marubeni Group has identified “Sustainable & Resilient Value Chains” as one of its Environmental and Social Materiality issues. Amid increasing needs in international society forsustainable supply chains, we are engaged in initiatives throughout the supply chain to conserve the global environment while promoting sustainable development of society. We seesuch efforts contribute directly to enhancing competitiveness and differentiation of the Marubeni Group in our Green Strategy under GC2024. By collaborating with our business
partners, we aim to increase business opportunities while building trust from our stakeholders.
Basic Supply Chain Sustainability Policy

We have formulated the Basic Supply Chain Sustainability Policy to promote supply chain
management in a highly effective way in cooperation with business partners.

Supply Chain
https://marubeni.disclosure.site/en/themes/22/

Expanded and Deeper Focus on Supply Chain Management
FYE 3/2019
Formulated Basic
Supply Chain
Sustainability Policy

FYE 3/2021
Conducted risk surveys of
consolidated subsidiaries(about 200 companies)

FYE 3/2022
Identify criticalcommodities in the
supply chain
Began to survey Tier 1
suppliers

Supplier Survey
All Tier 1
Suppliers

Critical commodities in the supply chain
Work with external experts to identify critical commodities in the Marubeni Group’s supply
chain, including food, apparel, metals, ‘conflict minerals’, and forest products, that haverelatively high sustainability-related risks.
As part of our handling of critical commodities in the supply chain, we have established policies forindividual commodities. In the fiscal year ended March 31, 2023, we established new procurement
policies for coffee beans, in addition to procurement policies for forest-derived products, palm oiland beef. We will continue to advance our procurement policies for individual commodities.
Basic Policy for Procurement of Coffee Beans
The Marubeni Group’s basic policy is to procure coffee beans from suppliers who comply with thefollowing Seven Principles*, and to obtain written confirmation before conducting transactions.
In addition, confirmation regarding the status of compliance with these principles is conducted ona regular basis.
* Seven Principles: (1) Compliance with laws and regulations, (2) Respect for human rights, (3) Environmental protection,(4) Quality control, (5) Safety and security, (6) Fairtrade, (7) Social contribution

Confirm the implementation of asustainability-related survey bya third-party institution, etc.

Secondary survey

Engagement
Disclosure

Confirm the acquisition ofsustainability-related certification,
etc.
Criticalcommodities
in thesupply chain
conducted already

Procurement Policies for Individual Commodities and Critical Commodities
in Supply Chain

Primary survey

Primary survey
Scope ofsecondary survey

SecondarysurveyAnalysis/Feedback
to Business
Divisions andGroup companies

A ction

P lan

C heckDo

Risk Mapping

Conduct a written
survey and on-site
inspection, etc.

being conducted

Notification to
Tier 1 Suppliers
From the fiscal year ended
March 31, 2021 to the fiscal
year ended March 31, 2023,
we notified all 23,000 Tier 1
suppliers, including ourconsolidated subsidiaries, ofthe “Basic Supply Chain
Sustainability Policy” and the“Marubeni Group Basic
Policy on Human Rights.”

Primary survey
We conduct a primary surveyof suppliers of criticalcommodities in the supply
chain, including confirmationof the implementation of asustainability-related survey
by a third-party institution,etc., and confirmation of theacquisition of sustainabilityrelated certification, etc.

Secondary survey
We conduct a secondary
survey for those surveyed
companies that could not be
confirmed. For the secondary
survey, we manage risks in a
PDCA cycle based on the
results of risk mapping. In thefiscal year ended March 31,
2023, we conducted on-site
surveys of three suppliers(one in Côte d’Ivoire, two in
Vietnam). Based on theoutcome of these surveys,
we did not find any major
non-compliance with ourbasic policies.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

65

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Risk Management
Marubeni’s competitiveness ties in directly with our ability to clearly identify a succession of opportunities and risks as they emerge and respond appropriately to change.
The Company has had a basic policy and internal rules in place for managing risks from each perspective, and keeps up to date its organizations, management structuresand management methods to enable effective risk management.
These days, we must operate our business with more attention than ever to geopolitical risk, global inflation, and the economic recession it has caused. We approach risk
management with a sense of urgency, increasing our sensitivity and sharing up-to-date information within the Group.
Main Risk Factors
1. Changes in the Global Economy andIndustrial Structure

4. Ability to Procure Funds and Funding Cost

7. Laws and Regulations

10. Risks from Natural and Other Disasters

2. Credit Risks Regarding Business Partners

5. Market Risks

8. Significant Lawsuits

11. Country Risks

3. Investment Risk

6. Risks Associated with Long-lived Assets

9. Environmental and Social Risks

12. Risks Related to Information Systems andInformation Security

Consolidated Financial Statements with Independent Auditors’ Report: Business Risks
https://www.marubeni.com/en/ir/reports/security_reports/

Integrated Risk Management to Calculate and Manage Risks for the Group as a Whole
To obtain a bird’s-eye view of business risks across diverse operations in a disciplined manner, we practiceintegrated risk management that encompasses the entire Marubeni Group, in addition to responding toindividual risks.
In conducting integrated risk management, the Marubeni Group calculates the maximum downside risk
(risk assets) applying multipliers based on the risk profile of each asset type, to understand the exposure torisks on a consolidated basis. The Group’s basic risk management policy is to keep risk assets within equity,which represents its risk-bearing capacity.
In the fiscal year ended March 31, 2022, we changed our approach to estimated maximum loss*,
introducing a strict measure excluding the risk diversification effect within the portfolio that we had
previously included in the calculation. The re-calculated risk assets for the fiscal year ended March 31,
2021 were higher than equity. However, with the subsequent increase in equity from profits and the
reduction in risk assets following the disposal of Gavilon’s grain business, we have maintained risk
assets within equity from the fiscal year ended March 31, 2022.
In addition, by monitoring RORA (return on risk assets), we work to strengthen earnings capacity
against the potential risks tied to our assets, maintain and increase ROE, and reduce the cost of equity.

Risk Assets
Risk Assets

2,877.7

Shareholders’ Equity(Billions of yen)

2,063.3

2,225.4 2,242.2

2,366.1

1,814.8

2021.32022.32023.3* Our portfolio has correlations and diversification effects among the assets it holds. Previously,
the impact of risks was calculated using the Value at Risk method, but after the change startingwith the fiscal year ended March 31, 2022, Marubeni now calculates risk assets as the sum of
the maximum downside risk of individual assets to prepare for the risk of major changes in
asset values in the same direction due to volatility in external business conditions.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

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Business Portfolio

66

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Risk Management

Response to Individual Risks
Country Risks

Exposure by Region

P.116

Constraints on our business activities can arise due to political, economic, social,Country Risk Management Policy

military, or other conditions in particular countries or regions, and in some cases, there(1) Evaluate each country on political, economic, andJapan¥1,159.2 billion

28%

is the risk of damage to the value of our assets. We conduct country risk management

external payment capacity, etc., measures, place

U.S.

¥911.5 billion

22%

as shown on the right to prevent this kind of risk from becoming excessive.

them in country categories according to risk, andChile¥373.4 billion

9%each category. Establish upper limit guidelines forAustralia¥352.5 billion

8%each country according to its country classification

Brazil¥187.6 billion

4%(with country classifications reviewed annually

Indonesia¥156.4 billion

4%

Taiwan¥79.0 billion

2%

China

¥36.1 billion

1%

Russia¥0.6 billion

0%¥4,181.9 billion

100%

implement overall framework management for

As of the end of March 2023, about half of our long-term exposure was toJapan and the U.S., which have low country risk. Given the Russia-Ukraine situation,
we have lowered the asset valuations in Russia, which has limited our exposure to
Russia to a small size. We have a ¥79 billion exposure to Taiwan (mainly in the power
generation business); we plan to continue our business while closely monitoring

appropriate returns regarding the respective

In order to respond quickly to changes in the global situation, our Economic

country’s business risks

Research Institutes, which function as think tanks for the Company, constantly gather
and analyze information, and share the results of their analysis on a daily basis within(3) Appropriate risk hedges, such as the use of tradeinsurance and investment insurance

Total

the Group via internal platforms and other means.

Commodity Price Risk
the Company’s earnings in resource fields. When ourbusinesses have positions in commodities, including in
non-resource fields, price fluctuations affect the profitabilityof transactions.
At Marubeni, we utilize commodities futures and/or
forward transactions to mitigate the risk of price fluctuations.
We also conduct commodity position management centeredon setting of limits on positions in each commodity andtimely monitoring. Net profit for resource projects for the
fiscal year ended March 31, 2023 is as shown on the right.
To reduce earnings volatility and achieve stable profit
growth, we give priority to growth investments in existing
business areas where we are competitive, especiallynon-resource fields.

End of March 2023

Percentage

in principle)(2) Establish investment criteria that consider

political and international developments.

Fluctuations in commodity prices have a major impact on

Country/region

Supply Chain Risk
Products

Net profit

Main operations

Copper

¥18.5 billion

Equity-method investment (Chile)

Iron ore¥28.5 billion

Equity-method investment (Australia)

Coking coal

¥98.8 billion

Equity-method investment/Property,
plant and equipment (Australia)

Crude oil andgas¥8.3 billion

Property, plant and equipment (incl. US
Gulf of Mexico)

LNG¥8.1 billion

Equity-method investment (incl. Papua
New Guinea)

Total¥162.2 billion* Net profit in relevant businesses and operating companies in relevant businesses forthe fiscal year ended March 31, 2023
(Reference) Sensitivity to annual net profit for the fiscal year ending March 31, 2024
: Crude oil price about ¥300 million [$/barrel]: Copper price about ¥1.3 billion [$100/ton]With sustainability issues surrounding supply chains becoming morediverse, engaging in supply chain management aimed at constructing
sustainable and resilient value chains leads to differentiation andenhanced competitiveness for the Group.
The Company conducted a survey of its consolidated
subsidiaries in the fiscal year ended March 31, 2021, and has beensurveying Tier 1 suppliers since the fiscal year ended March 2022.
The Company continues to work with business partners when wefind that there are issues.
P. 64 Sustainable & Resilient Value Chains

We have established individual procurement policies for productsthat have relatively high sustainability-related risks (products derived
from forests, palm oil, beef, coffee beans).

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

67

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Risk Management

IT Security Governance Framework

IT Security
SystemMarubeni aims to reduce Groupwide security risks through an IT security

Information Security Committee

governance framework. Marubeni has established the Information Security

Chair: CIO
Administrative office: Information Strategy Department

Committee, chaired by the CIO, to formulate response policies and identify
security issues. The Company has also created systems for responding tosecurity incidents with security management teams (M-CSIRT) that compre-

Security management teamhensively take care of incidents.
Specific
Measures

M-CSIRT
ReformMarubeni takes a three-pronged approach to IT security. 1 IT governance

Assessment

IT security governance three pillars

rules for information security are shared among and strictly followed by Group1

companies. 2 In principle, all Group companies are provided with secure,shared IT services based on these rules. 3 Assessments of compliance with IT

Rules(ITGR)IT Service(M-IGS)

2

3

Execution

governance rules are periodically conducted.

Assessment
Identification

Marubeni Group

Marubeni parent

Operatingcompanies

Overseas
affiliates

Compliance

Marubeni
Group Anti-Corruption
PolicyBusiness activities cannot be carried out without trust, and the Marubeni Groupconsiders compliance to be a major premise of business. Under the guidance of theCompliance Committee (chaired by the Chief Compliance Officer), which is directly
overseen by the President and CEO, we continually strive to strengthen the systemand seek to improve by reviewing and sharing any cases where there were violations.
The Compliance Committee formulates a compliance manual, shares theimportance of compliance, reviews its appropriateness and effectiveness according
to legal and social developments, and revises its contents annually.
The Company was sanctioned by the U.S. Department of Justice in 2012 and2014 for alleged violations of the U.S. Foreign Corrupt Practices Act.
With the aim of helping officers and employees of the Marubeni Group all over
the world to soundly deliver on their anti-bribery commitment, we have establishedthe “Anti-Corruption Handbook” which should be commonly observed by all officers
and employees to prevent recurrence. In addition, to thoroughly manage the bribery
risk, we distribute the following policy to our business partners and ask for theircooperation in our anti-corruption due diligence. Moreover, Group companies are
subject to periodic audits and theme-based audits by the Audit Department toensure measures to prevent bribery are being properly implemented across the
Marubeni Group.

Marubeni Group Anti-Corruption Policy
https://www.marubeni.com/en/company/governance/measure/compliance/pdf/policy_en.pdf

Organizational Diagram for the Marubeni Group Compliance System
Board of Directors

Audit & Supervisory Board Members
Compliance Committee

President and CEO
Corporate
Management
Committee

Direct control

SystemChairman of Compliance Committee (Chief Compliance Officer)
ReportInstructCompliance Committee Members (Group and Branch Office Compliance Officers)

Report/Consult

Reporting Lines(Through Supervisors)
Employees

Secretariat(Compliance Control Department)

Support/
Provideguidance“Marubeni Hotline”(Compliance Committee)

Marubeni Group
Compliance Officer
Compliance Access Point

Marubeni Group Employees

Report or consult through regular reporting lines
Report to or consult at a Compliance Access Point
Feedback

Reporting Lines(Through Supervisors)“Marubeni Hotline”(Outside Legal Counsel)
Marubeni Anti- Corruption
Hotline(Serious Crimes, such as Bribery)

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

68

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate GovernanceCorporate Governance Report:

Marubeni’s Corporate Governance Code Initiatives(Revised on June 11, 2021):

https://www.marubeni.com/en/company/
governance/data/cg_en.pdf

https://www.marubeni.com/en/company/governance/data/
cgcord_en.pdf

Timeline of Changes in Corporate Governance

Increase in
Outside Directors(five persons)

Red items: Strengthening supervisory functions
Blue items: Enhancement of management transparency and soundness

FYE
3/2016FYE
3/2017

Formulation of standards and methodology regarding
independence of outside executives

Percentage of
Outside Directors*

Percentage offemale Directors*

60%

20%

Percentage ofoutside Audit &Supervisory Board
members*

Company with auditor system

Directors

10 (including six outside)

Audit & Supervisory
Board members

5 (including three outside)

Term of office for directors

One year

Executive officer system adopted

Yes

P.74 Directors’ and Audit &Supervisory Board
Members’ Compensation

60%* As of June 23, 2023

Corporate Governance System

Organizational design

General Meeting of Shareholders
Election and dismissal

Election and dismissal

Board of Directors
Audit

Directors
10 (six outside)

Audit & Supervisory Board
Audit & Supervisory Board Members
5 (three outside)

Accounting audit

Election and dismissal

Audit &
Supervisory Board
Members’ Office16

Number of meetings of the Audit& Supervisory Board (FYE 3/2023)

17

Advisory bodies to the Boardof Directors (voluntary)

Nomination Committee, Governanceand Remuneration Committee

Accounting Auditor

Governance and Remuneration Committee
Appointing, removing, and supervising

3 Medium- and long-term

incentive remuneration
Ernst & Young ShinNihon LLC

Accounting audit

President
Corporate Management Committee

1 Monthly remuneration
2 Short-term incentive remuneration

Cooperation

Nomination Committee

Number of meetings of theBoard of Directors (FYE 3/2023)

Independent auditor

Revision of remuneration
plan for Directors

Abolishment of Advisor System

Establishment of Sustainability
Management Committee

Establishment of Nomination Committee
Establishment of Governance and Remuneration Committee
Implementation of effectiveness evaluations for the Board of Directors
Formulation of appointment criteria for directors and Audit & Supervisory Board members

Corporate Governance Chart

Executive compensation
system (FYE 3/2024)

FYE
3/2021FYE
3/2020Committee of Heads
of Divisions
Committee of
Executive Officers

Investment and Credit Committee

Business Group

Compliance Committee

Business Division

Sustainability Management Committee

Corporate Staff GroupInternal Control Committee

Domestic and Overseas
Branches & Offices

Disclosure Committee(Business Execution System)

Audit Department

FYE
3/2014FYE
3/2015FYE
3/2018FYE
3/2019FYE
3/2024FYE
3/2023FYE
3/2022

Increase in female Outside
Directors (two persons)Internal audit

Appointment of female Outside Director(one person)

Increase in Outside Directors(four persons)Outside Directors
became amajority

Increase in
Outside Directors(six persons)

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

69

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate GovernanceReasons for appointing officers:
See the Corporate Governance Reporthttps://www.marubeni.com/en/company/governance/data/cg_en.pdf

Members of the Board and Audit & Supervisory Board Members

Full-time
OutsideAudit & Supervisory Board Member

OutsideDirector

InsidePosition

Name

Responsibilities /Main career andqualifications

No. of years in office(cumulative No. ofyears in office)Fumiya Kokubu

Chairman of the Board

11 years(12 years and 9 months)

Masumi Kakinoki

President and CEO

5 years(5 years and 9 months)

Akira Terakawa

Senior Executive Vice President;
Chief Executive Officer, Consumer
Products Group

2 years(4 years)

Takayuki Furuya

Senior Managing Executive Officer,
CFO

3 years

Kyohei Takahashi

Former CEO, Showa Denko(currently, Resonac)

Yuri Okina

Formerly with Bank of Japan; Chairman,
The Japan Research Institute6 years

Masato Kitera

Former Deputy Minister, Ministry ofForeign Affairs; Former Ambassador to
China; Former Ambassador to France

3 years

Shigeki Ishizuka

Former Vice Chairman, Representative
Corporate Executive Officer, Sony(Currently, Sony Group)

2 years

Hisayoshi Ando

Former Vice-Minister of Economy, Tradeand Industry

1 yearMutsuko Hatano

Former Chief Researcher, Hitachi; Professor,
School of Engineering / Senior Aide to the
President, Tokyo Institute of Technology—

Takao Ando

Former Managing Executive Officer /Former General Manager, Risk
Management Dept. of the Company—

Toshiaki Kida

Former General Manager, Audit Dept.
of the Company

2 years

Tsuyoshi Yoneda

Former Commissioner General,
National Police Agency

6 years

Yoichi Kikuchi

Former Head of Hiroshima High Court,
Attorney-at-law

Shigeru Nishiyama

Certified Public Accountant; Professor,
Waseda University Graduate School

Nomination
Committee

GovernanceandRemuneration
Committee

Attendance at meetings of the Board of Directors and Committees
in FYE 3/2023 (attendance count/session count)
Board ofDirectors

Nomination
Committee

Governance andRemuneration
Committee

(6/6)

(7/7)

Audit &
Supervisory
Board(16/16)

MemberMember(16/16)

Member(16/16)(7/7)(16/16)

7 years
Outside Audit & Supervisory
Board Member 2 years*1

Chair

Chair

(16/16)(16/16)

MemberMember

(6/6)(16/16)(16/16)

Member

(7/7)

(7/7)

(6/6)

(13/13)*2

Member(16/16)

Member(17/17)(16/16)(7/7)(17/17)

3 years(15/16)(7/7)(16/17)

3 years(16/16)*1. Number of years served as Outside Audit & Supervisory Board Member of the Corporation before assuming office as Member of the Board*2. The attendance at meetings held following his assumption of office as Director on June 24, 2022.

(17/17)

Specialty and Experience
Corporate Finance andmanagement accounting

Legal, compliance Science &and risk
Technology
management/DX

International
experience

Publicinstitutions

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate Governance
The Board
Directors 10 (including six Outside Directors, two female Directors)
Composition

Outside Director Message
I have high hopes for Marubeni, which aspires to cutting-edge
initiatives and aims to create new business models while
generating results in its existing businesses.

Hisayoshi Ando
Outside Director

Number of Meetings(FYE 3/2023)

Main Agenda Items(FYE 3/2023)

16
Policy to enhance the corporate governance system (revision of criteria for submission to theBoard of Directors, improvement of organizational capability in business investments, etc.)
Investment and financing projects (reorganization of Group companies in the ICT field, etc.)
Monitoring of individual businesses
Financial results and other finance-related matters (shareholder returns policy, etc.)
Matters related to sustainability
Matters relating to compensation for officers
Reporting on Nomination Committee activities
Evaluation of the effectiveness of the Board of Directors, internal control-related matters, etc.

Evaluation of the effectiveness of the Board of Directors
A year has passed since I joined Marubeni’s Board of Directors. My impression over that time is that
discussions of the Board are extremely open and free-flowing. The environment is one in which
members can express their views from varied perspectives based on their respective positions, asinside or outside directors and as people involved in execution or supervision. This makes for spirited
discussion. On the other hand, the Board also holds calm discussions. When discussing theimpact on business activities and management, points of discussion are organized into short- andmedium-term categories, so that there is a matter-of-fact aspect to discussions of response
measures. I think this is conducive to highly effective discussions. Even proposals where opinions
are divided are not left unresolved or unambiguous, but are managed in a way that ensures thateveryone, including outside directors, has the opportunity to express their intentions clearly.

Reinforcement of supervisory functions of the Board of Directors

Working to pursue long-term growth of corporate value

To enhance the effectiveness of the Board of Directors, the Corporation appoints personnel
who have diverse experience, knowledge, expertise, and insight, etc., and are well-versed
in business activities as Directors. (Increase in female Directors from one to two persons
from the fiscal year ending March 31, 2024)

Cultivating human capital is absolutely essential in working to pursue long-term growth of corporate

Further enhance monitoring functions of the Board of Directors and promote a greater
sense of urgency on the executive side by having a majority of Independent Outside
Directors from the fiscal year ended March 31, 2023, and further strengthen governance byclarifying the functions of the Board of Directors/Corporate Management Committee.

value. We are living through a major historical turning point, with the shift toward a carbon-neutral
society, technical innovations including generative AI, and heightened geopolitical risks as seen in
Russia’s invasion of Ukraine. For Marubeni to fulfill the functions of a general trading company incontributing to social and economic development in society going forward, it will be necessary bothto incorporate solutions to various issues into Group businesses, as well as to further cultivate
human capital with the imagination to create new businesses and the ability to follow through in
implementing those businesses.

To further improve supervisory functions, we have transferred authority to the executive sidethrough the review of matters referred to the Board of Directors to implement measures tofocus on material management issues*.

My expectations for Marubeni* Issues such as Marubeni Group Vision, Group Governance, and issues relating to HR.

For example, Japan and many other countries and regions face the problem of a low birthrate andIn addition, to further enhance deliberation and oversight of important managerial issues by
the Board of Directors, we utilize forums other than the Board of Directors to hold free
discussion on themes meriting further discussion by the Board, and continue to discussmatters to be brought up with the Board. We implement processes that reflect the intent of
the Board—including Outside Directors—in selecting agenda items, and continue to review
the operations of the Board.

societal aging. I believe that this opens up many opportunities to create new businesses that address

While Marubeni continues to steadily generate results in its existing business domains, at the sametime I look for the Group to set its sights on cutting-edge initiatives and create new business models.

issues and demand spanning a range of industries involving the elderly, including medical devices andservices, apparel, food, housing, and healthcare. I think the creation of new businesses that bring
together these diverse sectors is precisely the kind of area where Marubeni can capitalize on thestrengths it has built up as a general trading company. From this perspective, I would also like to use
my own knowledge and experience to contribute creating value at Marubeni.

70

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

71

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate Governance

Message from the Chairperson of the Governance and Remuneration Committee

Advisory bodies to the Board of Directors
Nomination Committee
Directors four (including three outside)
Chair: Yuri Okina, Director (Outside)
Composition

Percentage of Outside Directors

75%
PurposeNumber of Meetings(FYE 3/2023)

Main Agenda Items(FYE 3/2023)

The Nomination Committee deliberates on candidates proposed
for appointment as directors and Audit & Supervisory Board
members as well as for the next CEO, and on succession plans
formulated and enacted by the CEO (including qualifications,requirements, successor candidate groups, and training anddevelopment plans), and reports its findings to the Board.
Six (all members attended all meetings)
Candidates for directors and Audit & Supervisory
Board members
Successor development plan

Governance and Remuneration Committee

Composition

Directors five, Audit & Supervisory Board member
one (including four outside)
Chair: Kyohei Takahashi, Director (Outside)
Percentage of Outside Directors

67%

PurposeNumber of Meetings(FYE 3/2023)

Main Agenda Items(FYE 3/2023)

The Governance and Remuneration Committee deliberates on
decision-making policies and the suitability of standards
regarding compensation for directors and executive officers,
and reports its findings to the Board.
Also assesses and reviews the Board of Directors as a whole,including Board composition and operations, deliberating
important matters of Corporate Governance accordingly, andreports its findings to the Board.
Seven (all members attended all meetings)
Compensation for directors and executive officers
Revisions to compensation systems
Evaluation of the effectiveness of the Board of
Directors
Enhancing disclosure of information on directors
and Audit & Supervisory Board members

We have revised our compensation system to be moreclosely linked to medium- to long-term corporate value
and to further share value with shareholders.

P.74 Remuneration for Directors
and Audit & Supervisory
Board Members

Kyohei Takahashi
Outside Director
Chairperson, Governance and Remuneration Committee

Marubeni’s Governance and Remuneration Committee
consists of two inside directors and four outside directors,
including myself as Chairperson. Since the majority ofmembers are outside directors, this advisory body maintains
a high degree of independence. The committee held
deliberations in the fiscal year ended March 31, 2023
regarding remuneration for directors and executive officers,
review of compensation plans, evaluation of the effectivenessof the Board of Directors, and disclosure of information on
directors and Audit & Supervisory Board members.
Marubeni recently significantly revised the compensation
system for directors and executive officers. The purpose of thecompensation system is to encourage management to realize
Marubeni’s vision for the future, the Global crossvalue platform,and create new value in partnership with all of its stakeholders,
as well as to further share value with shareholders while linking
performance more fully with longer-term corporate value.
The challenge in designing a compensation system isincorporating incentive systems linked to a company’s
management strategy and longer-term vision that will
generate suitable motivation to realize this strategy andvision. The need to ensure objectiveness, fairness, andtransparency also goes without saying.
In the GC2024 Mid-Term Management Strategy now
under way, Marubeni is pursuing a Green Strategy andcontinues to make efforts to help sustain and improve cash
generation, ROE, and reduce cost of equity, targeting
improvements in the share price and total shareholder return(TSR) and enhanced longer-term corporate value. We havedesigned the compensation system to reflect these goals.
An overview of the revised compensation system is as follows:· The system consists of monthly remuneration, short-term incentive remuneration,and medium- and long-term incentive remuneration.

· Monthly remuneration is fixed monetary compensation.
· Short-term incentive remuneration is variable monetary compensation to give
incentives for enhancing performance within a single fiscal year.
· Medium- and long-term incentive remuneration is variable stock-compensationthat is linked to and shared with shareholder value to give incentives forenhancing corporate value over the medium term.

Short-term incentive remuneration, aiming to match theperiods of execution of duties and performance evaluation, iscompensation based on performance evaluation in the fiscal
year corresponding to the period of execution of duties, paidin a lump-sum after the close of the relevant fiscal year.
In addition, for individuals’ evaluation-based compensation in
short-term incentive remuneration, evaluations are made inconsideration of contributions to new initiatives in each fiscal
year to create value for the future, such as sustainability-related
initiatives including the Green Strategy.
Furthermore, the revised compensation system introduces
relative total shareholder return (TSR) as an evaluation measure
for medium- and long-term incentive remuneration. TSR reflects
the ratio of capital gains and dividends divided by theinvestment amount (stock price), and is an indicator measuring
return on invested capital during the evaluation period. Relative
TSR is the ratio of Marubeni’s TSR divided by the TOPIX
growth rate (including dividends) for the same period.
Comparing Marubeni’s TSR with TOPIX is designed to exclude
market factors and allow a more appropriate assessment ofmarket value from a shareholder perspective.
At the same time, we revised the weightings of each formof compensation and optimized compensation levels to further
enhance objectiveness, fairness, and transparency. The result,
we believe, is a system that is easier to understand. Under the
new compensation system, I expect directors and executive
officers to pursue more initiatives to enhance corporate value
while further sharing value with Marubeni shareholders.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate GovernanceEvaluation of the Effectiveness of the Board of Directors
Since the fiscal year ended March 31, 2017, the Corporation has evaluated theeffectiveness of the Board of Directors on an annual basis, and worked continuously
to improve its effectiveness by implementing improvement measures to address
issues identified as a result of the analysis of the effectiveness evaluation.
POINT

Our evaluations of the effectiveness of the Board of Directors were featured in the Financial Services
Agency’s “Collection of Good Examples of Disclosure of Descriptive Information 2022” as offering
excellent disclosure on the status of our response to issues brought up in the previous fiscal year
and policies for addressing issues in the fiscal year under review.

TargetAll Directors and Audit & Supervisory Board members

Frequency

Once a year

Response to issues identified by the evaluation of effectiveness of the Board of Directors
conducted in the fiscal year ended March 31, 2022
Issues in the fiscal year ended March 31, 2022

Initiatives in the fiscal year ended March 31, 2023

Enhancement of discussions in the
Board of Directors meetings regarding
key material management issues,changes in external environment,
and risks

We discussed changes in the external environment, the response to energy
security issues, and international affairs, among other topics, through thefacilitation of meetings outside of ordinary Board of Directors meetings⇨ 〇 Evaluation score has improved in questionnaires and interviews
compared to the fiscal year ended March 31, 2022.
To further strengthen the supervisory functions of the Board of
Directors, we transferred the authority to the executive side through thereview of matters referred to the Board to implement measures to focus
on material management issues.

Discussions regarding HR strategy
and allocation of management
resources to human capital

We monitored the progress of the HR strategy under the Mid-Term
Management Strategy “GC2024” and held discussions regarding thedirection, etc., of HR strategy through the facilitation of meetings outsideof ordinary Board of Directors meetings.

Supporting the Outside Directors
to further utilize their expertise

We enhanced support for Outside Directors through the provision ofopportunities for dialogue and opinion exchange with executive officers,in addition to the conventional information-sharing and support systems.
⇨ ◎ High evaluations in surveys and interviews

Questionnaire survey and interviews (anonymous responses)
An external specialized agency was utilized for implementation.
Evaluation items
Roles of the Boardof Directors

Composition of the Boardof Directors

Utilization of committees

Accountability to
stakeholders

Discussion at the Boardof Directors

Major issues identified by the evaluation conducted in the fiscal year ended March 31, 2023,
and the policy for future initiatives
Issues in the fiscal year ended March 31, 2023

The policy for future initiatives

Deepening discussions regarding thedirection the Board of Directors shouldtake to enhance its supervisory functions

To enhance supervisory functions, we believe it is important to deepen
discussions on the direction and supervision of the Board of Directors in
the context of the Group’s future vision and the Mid-Term Management
Strategy “GC2024.”
We utilize forums other than the Board of Directors, creating opportunities for Board members to discuss these matters, continuing deliberations aimed at constructing a situation congruent with the idea of what
Marubeni’s governance system should be based on the current status
and features of Marubeni.

Examining the agenda selection
process and the supervision of key
issues regarding group management

We believe that we must select agenda items for the Board of Directors
according to a role emphasizing its supervisory functions, and to strengthen
oversight from the perspective of the Group as a whole regarding important
themes in group management (group governance, human capital-related
issues, etc.).
Reflecting the intention of the Board of Directors including Outside Directors
in the agenda selection process of the Board, and strengthening oversight ofissues to be discussed from a group management perspective through thereview of the Mid-Term Management Strategy “GC2024,” among others.

Evaluation and review
After analyzing the responses to surveys and interviews, review the analysis results at theGovernance and Remuneration Committee and deliberate them at the Board of Directors

Verification of issues
Issues in evaluation results were verified (refer to issues identified for the fiscal years
ended March 31 in 2022 and 2023)

Improvements
These findings were used to improve operations of the Board of Directors
Marubeni aims to improve medium- to long-term corporate value by maintaining andenhancing the effectiveness of the Board of Directors. (Refer to initiatives in the fiscal year
ended March 31, 2023, and the policy for future initiatives)

72

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

73

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate GovernanceTraining for Directors and Audit & Supervisory Board Members
Directors and Audit & Supervisory Board members are provided with the information they need to perform theirduties in an appropriate and timely manner, by the Corporate Planning & Strategy Department, Executive Secretariat,
Audit & Supervisory Board Members’ Office, and so on, playing central roles in this regard. Also, directors and Audit& Supervisory Board members are able to participate in meetings and seminars as necessary, at the Corporation’scost. In addition, in advance of meetings of the Board of Directors, Outside Directors/Audit & Supervisory Board
members are given briefings regarding management issues, execution status, agenda, and so on.
Furthermore, at the Committee of Executive Officers and so on, reports on the economic situation are given ona regular basis by Economic Research Institutes, and an effort is made to share information. Outside Directors/Audit &Supervisory Board Members are also given opportunities to receive explanations regarding distributions of operations,issues, and project implementation status at each business division and each corporate staff department.
FYE 3/2023 Key Achievements
Training and provision of information to deepen understanding of the external environment
Lectures by outside attorneys for Outside Directors and outside Audit & Supervisory Board members
about “Topics relating to this year’s annual general meeting of shareholders and Board 3.0” (June 2022)
Provision of information about economic conditions from Marubeni Research Institute to directors andAudit & Supervisory Board members (weekly and as needed)

Policy on the Holding and Reduction of Cross-Shareholdings(Listed General Investment Shares*)Marubeni Group conducts diversified business activities across a broad range of sectors throughdomestic and overseas networks. Cooperative relationships with a variety of companies are
essential to its operations. The Company annually reviews the overall significance of holding eachof its cross-shareholdings based on a comprehensive assessment of quantitative metrics (returnon investment (profit/loss divided by acquisition cost) compared against the Company’s weighted
average cost of capital) and qualitative factors (e.g., maintaining or strengthening relationships
with investee companies through equity ownership). The Board of Directors verifies the findings ofthis review. In principle, cross-shareholdings are sold if it is decided that holding them is no longer
significant. Sales of cross-shareholdings are reported to the Board of Directors afterwards.

Trends in Cross-Shareholdings(Listed General Investment Shares)
FYE 3/2016: 113 issues held

FYE 3/2023:

52* General investment shares are equity
investments owned for a purpose other thanas a pure investment.

issues held

113
104

Topics The situation in Ukraine, the economic outlook in response to monetary normalization in Europe and the U.S.,

92

Japan’s semiconductor industrial policy, the 2023 global economic outlook, etc.

87

Roughly 50%
reduction overseven years

82

Training and provision of information to deepen understanding of the Corporation

67

Explanation from each business division and each corporate staff department to new Outside Directors of
distributions of operations, issues, and project implementation status at each division (June 2022)
Status updates on the Corporation and promotion of mutual understanding through Audit & Supervisory
Board members’ regular meetings with the Chairman of the Board, the President, CSO, CFO, and CAO
respectively (held nine times in total, including six times with attendance by Outside Directors)

58

52

Topics Corporate governance of Marubeni and the Marubeni Group, issues in Group internal controls and compliance, etc.

Free discussions among Outside Directors, chairman and president (total of two times)
Topics The functions and roles that our Board of Directors should carry out given changes in the external environment,

the direction of HR strategy and HR development, etc.
The holding of meetings between Outside Directors and chief operating officers of each division (total of
six times)
Topics What issues we face now as we look ahead to 10 years in the future, and such

Restarting visits of Outside Directors to group companies
Meetings with the management team of Marubeni Nisshin Feed Co., Ltd., which makes and sells
compound feed, a Chita Plant tour (December 2022), etc.
Explanation of agendas in advance of Board of Directors meetings to Outside Directors/Audit & Supervisory
Board members from the Corporate Planning & Strategy Department and Legal Department (as necessary)
Sharing of details of interviews of executive departments conducted by inside Audit & Supervisory Board
members to outside Audit & Supervisory Board members (as necessary)* Site visits were not held after FYE 3/2021 due to the COVID-19 pandemic, but we resumed site visits in stages from FYE 3/2023.

2016.32017.32018.32019.32020.32021.32022.32023.3

Policy Relating to Listed Subsidiaries
When considering the IPO of subsidiaries, the Company makes decisions from the perspective of
increasing the corporate value of the entire Group, based on the premise of increasing the investee
company’s corporate value. We discuss cases carefully in terms of corporate governance in light ofissues such as the parent-subsidiary relationship.
The Company conducted a tender offer for the common shares of ARTERIA Networks
Corporation, its only listed subsidiary, in the fiscal year ended March 31, 2023; the tender offer
was completed in August 2023. The subsidiary will be delisted after the necessary procedures
are completed, such that the number of listed subsidiaries of the Company will be zero.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

74

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate Governance

Remuneration for Directors and Audit & Supervisory Board Members
New policy for determining remuneration for Directors (revised in March 2023)
The Corporation revised the remuneration plan for Directors of the Corporation with the aim of enhancing linkage with medium- to long-term corporate value, and further promoting value sharing with our shareholders.
Monthly remuneration
Basic compensation

Short-term incentive remuneration
Bonuses

Performance-based bonuses

Medium- and long-term incentive remuneration
Individual
evaluation-based
compensation

Restricted StockMonetary benefit

Stock benefit

Fixed compensation

Basic compensation corresponding to each Director’s position.
Directors are also paid director bonuses for their responsibilities

TSR*-linked Performance
Share Units

Variable compensation
Performance-based bonuses based on a company-wide performance
evaluation, and individuals’ evaluation-based compensation consistingof a performance evaluation of the individual’s organization and an
individual qualitative evaluation of future-oriented value creation

Restricted stock linked to and shared with shareholder value and TSRlinked performance share units with shares transfer restrictions (“TSR-linked
Performance Share Units”) that use relative TSR as an evaluation measurerewarding improvement in corporate value over the medium to long term

* TSR: Total Shareholder Return (ratio of dividends and capital gains from share price appreciation divided by investment amount (share price))

Key points of changes in policy for determining remuneration for Directors

Clarification of the type of remuneration and restructuring of thecurrent remuneration system

Rectification of the composition ratio of incentive remuneration

We have unified the types of compensation and payment formats, restructuring the system as follows.

long-term incentive remuneration to strengthen the link with medium- to long-term improvement in(1) Monthly compensation, composed of basic compensation and bonuses

corporate value.

(2) Short-term incentive remuneration, consisting of performance-based bonuses and individuals’

For the President & CEO, the composition ratio of monthly remuneration/the short-term incentive remuneration/

evaluation-based compensation(3) Medium- and long-term incentive remuneration, consisting of Restricted Stock and TSR-linked Performance
Share Units

We have corrected the balance of the composition ratio of short-term incentive remuneration and medium- andthe medium- and long-term incentive remuneration shall be set as approximately 1:1:1

Setting of more appropriate remuneration levels
To ensure that compensation levels of Directors are competitive so as to secure and maintain excellent human

Improvement of the incentive function
Short-term incentive remuneration

capital, the compensation levels are examined by comparing them with objective research data on compensa-

Regarding performance-based bonuses, the previous system used the previous fiscal year’s performance as antion levels.

evaluation measure, but now we have had the periods of execution of duties and performance evaluation coincide.

Introduction of Malus and Clawback clauseMedium- and long-term incentive remuneration

The short-term and the medium- and long-term incentive remuneration shall be the subject of the clauses that

The previous evaluation indicator for shares with restriction on transfer subject toallow the Corporation to reduce or cancel the remuneration (Malus) and request the return of the paid remuner-market-capitalization-based exercisability conditions was changed from Marubeni’s market value growth rate toation (Clawback) based on the resolution of the Board of Directors when there was an adjustment of financial

relative TSR, and a new payment coefficient has been adopted to ensure an appropriate incentive function

results after an announcement due to a significant revision of financial statements or there was a significant

corresponding to the business results.

violation or breach of internal rules by an officer.

tion provided by outside specialized organizations and other sources to determine the appropriate compensa-

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

75

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate Governance1

Remuneration for Directors

To ensure that compensation levels of Directors are competitive so as to secure and maintain excellent human capital, the compensation levels are examined by comparing them with objective research data oncompensation provided by outside specialized organizations and other sources to determine the appropriate compensation levels. As for the composition ratio of remuneration and other payments, it shall focus on
the medium- and long-term improvement of corporate value. For the President & CEO, the composition ratio of monthly remuneration/the short-term incentive remuneration/the medium- and long-term incentive
remuneration shall be set as approximately 1:1:1 when consolidated net profit is 400 billion yen and core operating cash flow is 500 billion yen.

Short-term incentive remuneration
Approx. 25%

The evaluation indicators for performance-based bonuses shall be decided based on consolidated net profit (profit attributable toowners of the parent) and core operating cash flow, which are important KPIs.
Amount of payment of performance-based bonuses according to theresults of consolidated net profit

Approx. 35%
Approx. 30%

Approx. 50%

Approx. 35%

Approx. 25%

Consolidated
net profit¥170 billion
or below¥400 billion¥700 billion
or moreCore operating cash
flow

¥270 billion
or below¥500 billion¥800 billion
or more* Excluding individuals' evaluation-based compensation and when the payment
coefficient of TSR-linked Performance Share Units is 100%

2

Remuneration for Audit & Supervisory
Board Members

Compensation for Audit & Supervisory Board Members are
determined by discussions among Audit & Supervisory Board
Members. Compensation for Audit & Supervisory Board
Members, all of whom are completely independent frombusiness execution, consists entirely of fixed compensationand no performance-based compensation is paid.

Amount of payment of performancebased bonuses

Approx. 50%
Approx. 50%

3(Ratio against 50% of basic compensation by position)

Medium and long-term incentive remuneration

Performance-based bonuses/ Incentive curve

230%

100%

170

400

700 (billions of yen)Amount of payment of performance-based bonuses according
to the core operating cash flow

Consolidated net profit(Ratio against 50% of basic compensation by position)

Monthly remuneration

Amount of payment of performancebased bonuses

Composition of President & CEO remuneration

230%

100%

270

500

800 (billions of yen)Core operating cash flow

Maximum total amount of remuneration and other payments for Directors and that for Audit &Supervisory Board Members

At the 99th Ordinary General Meeting of Shareholders held June 23, 2023, limits on total remuneration for directors and Audit &Supervisory Board members were determined as follows.
Type of compensation

Directors

Monthly remuneration

Up to ¥650 million per year(of which ¥150 million per year for Outside Directors)

Short-term incentive
remuneration

Up to ¥700 million per year

Restricted Stock
TSR-linked Performance
Share Units
Audit & Supervisory
Board members

Resolution

Total Amount ofCompensation

Number of members present
for the resolution
Ten Directors(of which, 6 Outside Directors)
Three Directors(of which, zero Outside Directors)

Up to ¥200 million per year
(up to 450,000 shares per year) *Up to ¥850 million per year
(up to 650,000 shares per year) *Four Directors(of which, zero Outside Directors)

Up to ¥170 million per year

Five Audit & Supervisory Board
members* If any event arises that requires an adjustment of the total number of shares of common stock of the Corporation to be issued or disposed of, such as a stock split, gratis allotment, or
consolidation of shares of common stock of the Corporation, such total number shall be adjusted to the extent reasonable.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate Management* Current shareholdings in the Corporation: As of the end of March 2023 (rounded down to the nearest thousand). Potential shareholdings correspond to unexercised subscription
rights to shares granted as stock-compensation-type stock options and stock compensation-type stock options subject to market-capitalization-based exercisability conditions.

As of June 23, 2023

*1. Attendance at meetings of the Board of Directors: The attendance at meetings held following his assumption of office as Director on June 24, 2022.

Members of the Board

Fumiya Kokubu

Masumi Kakinoki

Chairman of the Board
No. of years served as Director
Attendance at meetings of the Board of
Directors

Representative Director, President and CEO
11 years
100% (16/16)

Current shareholdings in the Corporation 284 thousand shares
Potential shareholdings in the
200 thousand shares
Corporation
Total shareholdings in the Corporation 484 thousand shares

Apr. 1975: Joined the Corporation
Apr. 2005: Executive Officer
Jun. 2008: Managing Executive Officer, Member of the Board
Apr. 2010: Senior Managing Executive Officer
Jun. 2012: Senior Executive Vice President, Member of the Board
Apr. 2013: President and CEO, Member of the Board
Apr. 2019: Chairman of the Board (Current)

No. of years served as Director
Attendance at meetings of the Board of
Directors

5 years
100% (16/16)

Current shareholdings in the Corporation 300 thousand shares
Potential shareholdings in the
63 thousand shares
Corporation
Total shareholdings in the Corporation 364 thousand shares

Apr. 1980: Joined the Corporation
Apr. 2010: Executive Officer
Jun. 2013: Managing Executive Officer, Member of the Board
Apr. 2014: Managing Executive Officer
Apr. 2017: Senior Managing Executive Officer
Jun. 2018: Senior Executive Vice President, Member of the Board
Apr. 2019: President and CEO, Member of the Board (Current)

Status of Important Concurrent Occupations or Positions at Other Organizations:
Member of the Board, TAISEI CORPORATION Director, Honda Motor Co., Ltd.

Akira Terakawa

Takayuki Furuya

Representative Director,
Senior Executive Vice President

Representative Director,
Senior Managing Executive Officer

No. of years served as Director
Attendance at meetings of the Board of
Directors

2 years
100% (16/16)

Current shareholdings in the Corporation 114 thousand shares
Potential shareholdings in the
122 thousand shares
Corporation
Total shareholdings in the Corporation 237 thousand shares

Apr. 1981: Joined the Corporation
Apr. 2010: Executive Officer
Apr. 2013: Managing Executive Officer
Jun. 2014: Managing Executive Officer, Member of the Board
Jun. 2016: Managing Executive Officer
Apr. 2018: Senior Managing Executive Officer
Jun. 2021: Senior Executive Vice President, Member of the Board
Apr. 2022: Senior Executive Vice President, Member of the Board, Chief Executive Officer,
Consumer Products Group (Current)

No. of years served as Director
Attendance at meetings of the Board of
Directors

3 years
100% (16/16)

Current shareholdings in the Corporation 93 thousand shares
Potential shareholdings in the
31 thousand shares
Corporation
Total shareholdings in the Corporation 124 thousand shares

Apr. 1987: Joined the Corporation
Apr. 2018: Executive Officer
Jun. 2020: Managing Executive Officer, Member of the Board
Apr. 2023: Senior Managing Executive Officer, Member of the Board; CFO;
Chief Operating Officer, Investor Relations and Credit Ratings; Chairman of Investment and Credit Committee;
Chief Sustainable Development Officer (CSDO); Chairman of Disclosure Committee (Current)76

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

77

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate Management

Outside Director

Kyohei Takahashi

Yuri Okina

Outside Director

Outside Director

No. of years served as Director
Attendance at meetings of the Board of
Directors
Current shareholdings in the Corporation
Potential shareholdings in the
Corporation
Total shareholdings in the Corporation

7 years
100% (16/16)———

Mar. 2002: Managing Director, Showa Denko K.K.
Mar. 2004: Senior Managing Director, Showa Denko K.K.
Jan. 2005: Representative Director, President, Showa Denko K.K.
Jan. 2007: Representative Director, President and Chief Executive Officer (CEO), Showa Denko K.K.
Jan. 2011: Representative Director, Chairman of the Board, Showa Denko K.K.
Jun. 2014: Audit & Supervisory Board Member of the Corporation
Mar. 2015: Director, Chairman of the Board, Showa Denko K.K.
Jun. 2016: Member of the Board of the Corporation (Current)
Jul. 2016: Audit & Supervisory Board Member, Fukoku Mutual Life Insurance Company (Current)
Mar. 2017: Advisor, Showa Denko K.K.
Jan. 2023: Executive Advisor, Resonac Holdings K.K. (former Showa Denko K.K.) (Current)

No. of years served as Director
Attendance at meetings of the Board of
Directors
Current shareholdings in the Corporation
Potential shareholdings in the
Corporation
Total shareholdings in the Corporation

Hisayoshi Ando

Outside Director

Outside Director

Current shareholdings in the Corporation
Potential shareholdings in the
Corporation
Total shareholdings in the Corporation

2 years
100% (16/16)———

Apr. 2017: Representative Director and President, Sony Imaging Products & Solutions Inc.
Jun. 2018: Senior EVP, Sony Corporation
Apr. 2020: Representative Director and President, CEO, Sony Electronics Corporation
Jun. 2020: Vice Chairman, Representative Corporate Executive Officer, Sony Corporation(Currently, Sony Group Corporation)
Apr. 2021: Director, Sony Corporation
Jun. 2021: Member of the Board of the Corporation (Current)
Jun. 2022: Vice Chairman, Sony Group Corporation
Jun. 2023: Director, LIXIL Corporation (Current)

Outside Director
6 years
100% (16/16)———

Jun. 2006: Counselor, The Japan Research Institute, Limited
Mar. 2014: Director, Bridgestone Corporation (Current).
Jun. 2014: Vice Chairman, The Japan Research Institute, Limited
Jun. 2017: Member of the Board of the Corporation (Current)
Apr. 2018: Chairperson, The Japan Research Institute, Limited (Current)

Shigeki Ishizuka
No. of years served as Director
Attendance at meetings of the Board of
Directors

Masato Kitera

No. of years served as Director
Attendance at meetings of the Board of
Directors
Current shareholdings in the Corporation
Potential shareholdings in the
Corporation
Total shareholdings in the Corporation

No. of years served as Director
Attendance at meetings of the Board of
Directors
Current shareholdings in the Corporation
Potential shareholdings in the
Corporation
Total shareholdings in the Corporation

3 years
100% (16/16)———

Jul. 2008: Director-General, International Cooperation BureauJan. 2010: Deputy Minister
Sep. 2012: Assistant Chief Cabinet Secretary
Nov. 2012: Ambassador and Plenipotentiary to People’s Republic of China
Jun. 2016: Ambassador and Plenipotentiary to France, Andorra, and Monaco (Resigned in Dec. 2019)
Jun. 2020: Member of the Board of the Corporation (Current) Director, Member of the Board, NIPPONSTEEL CORPORATION
Mar. 2021: Member of the Board, Japan Tobacco Inc. (Current)
Jun. 2022: Director, Audit & Supervisory Committee Member, NIPPON STEEL CORPORATION (Current)

Mutsuko Hatano
Outside Director
1 year
100% (13/13)———

Jun. 2013: Director-General of Kanto Bureau of Economy, Trade and Industry of Ministry of
Economy, Trade and Industry
Jul. 2015: Director-General of Commerce and Information Policy Bureau of Ministry of Economy,
Trade and Industry
Jul. 2017: Director-General of Small and Medium Enterprise Agency of Ministry of Economy, Tradeand Industry
Jul. 2019: Vice-Minister of Economy, Trade and Industry of Ministry of Economy, Trade andIndustry (Resigned in Jul. 2021)
Dec. 2021: Executive Advisor, Nippon Life Insurance Company
May.2022: Director, Audit & Supervisory Committee Member, Nitori Holdings Co., Ltd. (Current)
Jun. 2022: Member of the Board of the Corporation (Current)
Jun. 2023: President & CEO, Tokyo Small and Medium Business Investment & Consultation
CO., LTD. (Current)

No. of years served as Director
Attendance at meetings of the Board of
Directors—

Current shareholdings in the Corporation
Potential shareholdings in the
Corporation
Total shareholdings in the Corporation

—

—

—
—

Sep. 1997: Visiting Researcher, University of California, Berkeley (UCB)
Apr. 2005: Chief Researcher of Central Research Laboratory, Hitachi, Ltd.
Jul. 2010: Professor, Graduate School of Science and Engineering, Tokyo Institute of Technology
Apr. 2016: Professor, Department of Electrical and Electronic Engineering, School of Engineering,Tokyo Institute of Technology (Reorganized) (Current)
Mar. 2020: Representative Director and President, The Japan Society of Applied Physics
Mar. 2022: Senior Aide to the President, Tokyo Institute of Technology (Present Position) AdjunctExecutive Member, Council for Science, Technology and Innovation, Cabinet Office (Current)
Apr. 2022: Auditor, The Japan Society of Applied Physics (Current)
Jun. 2023: Member of the Board of the Corporation (Current)

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

78

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate Management

Audit & Supervisory Board Members

Takao AndoToshiaki Kida

Audit & Supervisory Board Member
No. of years served as Director
Attendance at meetings of the Audit &Supervisory Board

Audit & Supervisory Board Member——

Current shareholdings in the Corporation 71 thousand shares
Potential shareholdings in the
24 thousand shares
Corporation
Total shareholdings in the Corporation 95 thousand shares

Apr. 1985: Joined the Corporation
Apr. 2019: Executive Officer
Apr. 2022: Managing Executive Officer
Jun. 2023: Audit & Supervisory Board Member (Current)

No. of years served as Director
Attendance at meetings of the Audit &Supervisory Board

2 years
100% (17/17)

Current shareholdings in the Corporation 33 thousand shares
Potential shareholdings in the—
Corporation
Total shareholdings in the Corporation 33 thousand shares

Apr. 1984: Joined the Corporation
Jun. 2021: Full-time Audit & Supervisory Board Member of the Corporation (Current)

Tsuyoshi Yoneda

Yoichi Kikuchi

Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

No. of years served as Director
Attendance at meetings of the Audit &Supervisory Board

No. of years served as Director
Attendance at meetings of the Audit &Supervisory Board

No. of years served as Director
Attendance at meetings of the Audit &Supervisory Board

Current shareholdings in the Corporation
Potential shareholdings in the
Corporation
Total shareholdings in the Corporation

Jun. 2009: Commissioner-General’s Secretariat, National Police Agency
Oct. 2011: Deputy Directors-General, National Police Agency
Jan. 2013: Commissioner General, National Police Agency (Retired in Jan. 2015)
Jun. 2015: Director, Japan Exchange Group, Inc.
Jun. 2017: Audit & Supervisory Board Member of the Corporation (Current)
Oct. 2020: President, Council for Public Policy (Current)

6 years
100% (17/17)———

Current shareholdings in the Corporation
Potential shareholdings in the
Corporation
Total shareholdings in the Corporation

Shigeru Nishiyama
3 years
94% (16/17)———

Mar. 2010: Head of Tokushima District Court & Family Court
Sep. 2011: Head of Kyoto District Court
Jun. 2013: Chief Judge of Division, Tokyo High Court
Oct. 2017: Head of Hiroshima High Court (Resigned in Aug. 2018)
Nov. 2018: Registered as attorney-at-law (Current)
Jun. 2020: Audit & Supervisory Board Member of the Corporation (Current)
Jul. 2021: Audit & Supervisory Board Member, Asahi Mutual Life Insurance Company (Current)

Current shareholdings in the Corporation
Potential shareholdings in the
Corporation
Total shareholdings in the Corporation

3 years
100% (17/17)
2 thousand shares—
2 thousand shares

Apr. 2006: Professor, Waseda University Graduate School (Business School) (Currently, Waseda
Business School (Graduate School of Business and Finance)) (Current)
Aug.2018: Specially Appointed Professor, Shizenkan University Graduate School of Leadership &Innovation (Current)
Sep. 2018: Director, Chairman of the Audit Committee, Macromill, Inc. (Current)
Jun. 2020: Audit & Supervisory Board Member of the Corporation (Current)
Jun. 2021: Director, Member of the Board, TOKYO ENERGY & SYSTEMS INC. (Current)
Jun. 2022: Audit & Supervisory Board Member (Outside), NH Foods Ltd. (Current)

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Message from the CFO / Sustainability for the Marubeni Group / The Material Issues for Sustainability (Materiality) / Sustainability Management / Climate Change (Disclosure in Line with the Recommendations of the TCFD) / Sustainable Forestry /Human Rights & Co-Development with Communities / Sustainable & Resilient Value Chains / Risk Management / Corporate Governance / Corporate Management

Corporate Management
Corporate Management Committee member

Executive Officers (40; of which 10 are members of the Corporate Management Committee)
President and CEO

Managing Executive Officers

Executive Officers

Masumi Kakinoki

Yoshiaki Yokota

Minoru Tomita

Chief Executive Officer, Energy & Infrastructure Solution Group

General Manager, Osaka Branch

General Manager, Corporate Planning & Strategy Dept.

Hidekazu Futai

Takashi Imamura

Yasuhiko Ogura

Chief Operating Officer, Agri Business Div.

General Manager, Research Institute

General Manager, Executive Secretariat

Jiro Itai

Takashi Yao

Kei Tomomi

Chief Executive Officer, Transportation & Industrial Machinery,
Financial Business GroupRegional CEO for Oceania; Managing Director, Marubeni Australia Ltd.

Chief Operating Officer, Infrastructure Project Div.

Koichi Ariizumi

Toshio Shinoda

Senior Executive Vice President

Akira Terakawa
Chief Executive Officer, Consumer Products Group

Senior Managing Executive Officer

Mutsumi Ishizuki
CAO; Senior Operating Officer, Audit Dept.; Senior Operating Officer,
Executive Secretariat; Vice Chairman of Investment and Credit
Committee; Chief Compliance Officer; Chairman of Internal Control
Committee; Chief Information Officer

Kosuke Takechi
Regional CEO for the Americas; Regional COO for North & Central
America; President and CEO, Marubeni America Corporation

Jun Horie

Seiichi Kuwata

Chief Executive Officer, Materials GroupRegional CEO for Europe & CIS; Regional COO for Europe;
Managing Director and CEO, Marubeni Europe plc

Kenichiro Oikawa

General Manager, Legal Dept.

Koji Kashima
Senior Operating Officer for CAO,CHRO

Taro Kawabe
Chief Operating Officer, Finance, Leasing & Real Estate Business Div.

CSO; Regional CEO for East Asia; Regional CEO for Japan Business;
Vice Chairman of Investment and Credit Committee

Naoshi Hirose

Koichi Uchida

Senior Operating Officer for CSO

Chief Operating Officer, Energy Div.

Takayuki Furuya

Tsuyoshi Teragaki

Satoru Harada

CFO; Chief Operating Officer, Investor Relations and Credit Ratings;
Chairman of Investment and Credit Committee; Chief Sustainable
Development Officer (CSDO); Chairman of Disclosure Committee

Chief Operating Officer, Forest Products Div.

Chief Operating Officer, Power Div.

Satoru Ichinokawa

Masayuki Omoto

Chief Operating Officer, Chemicals Div.

CDIO; Chief Operating Officer, Next Generation Business Development
Div.; Vice Chairman of Investment and Credit Committee

Takeshi Mamiya
Regional CEO for ASEAN & Southwest Asia; Regional COO for
ASEAN; Managing Director, Marubeni ASEAN Pte. Ltd.

Satoru Yokoshiki
General Manager, Business Accounting Dept.

Hideyoshi Iwane
General Manager, Corporate Accounting Dept.

Chijo Tajima
General Manager, Finance Dept.

Hiromitsu Morishima
Chief Operating Officer, Lifestyle Div.

Hiromichi Mizuno

Regional CEO for China; President, Marubeni (China)
Co., Ltd.

Tomonobu Miki
Chief Operating Officer, Food Division -I

Daisuke Tsuchiya
Chief Operating Officer, Metals & Mineral Resources Div.

Toru Okazaki
Chief Operating Officer, Aerospace & Ship Div.

Hidefumi Oya
Chief Operating Officer, Food Division -II

Toshihiro Fukumura
Chief Operating Officer, Next Generation Corporate
Development Div.

Atsushi Suzuki
General Manager, Chubu Branch

Takashi Fujinaga
Chief Operating Officer, IT Solutions Div.

Kazuhiro Kondo
Chief Operating Officer, Construction, Industrial Machinery &Mobility Div.

79

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Business Portfolio
81

Consumer Products Group

81
82
83
84
85
86

SECTION

Food Division- II
Agri Business Division
Forest Products Division
Chemicals Division
Metals & Mineral Resources Division
New Energy Business Development Department
Energy Division
Power Division
Infrastructure Project Division

Transportation & Industrial Machinery, Financial Business Group

93
94
95
96

Food Division- I

Energy & Infrastructure Solution Group

89
90
91
92
93

IT Solutions Division

Materials Group

86
87
88
89

Lifestyle Division

Aerospace & Ship Division
Finance, Leasing & Real Estate Business Division
Construction, Industrial Machinery & Mobility Division

CDIO

96
97

Next Generation Business Development Division
Next Generation Corporate Development Division

80

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

81

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Consumer Products Group

Global Business Portfolio

Lifestyle Division
OEM/ODM business

Building a circularsupply chain anddeveloping businessin the Americas, Europe,
Japan, and Asia

Saide Tekstil Sanayi ve
Ticaret Anonim Sirketi(Turkey – ODM business for
European SPA)

Conveyor belt distribution
business

Hiromitsu Morishima

Viacore Solutions, LLC
Viacore Solutions Inc.

Eco-friendly businessdevelopment(formerly Belterra Corporation) (Canada)

Circ, Inc.

(formerly All-State Belting, LLC) (U.S.)

Chief Operating Officer,
Lifestyle Div.

(U.S. – Manufacture andsale of recycled textile materials)

OEM/ODM business
Marubeni Fashion Link, Ltd.
(Japan, Asia: Planning, manufacturing
and sale of apparel and goods)

Major Products and Areas
Apparel, footwear / Lifestyle products / Textile materials, industrial
materials / Nursing care products and services / Rubber products (tires
and conveyor belts) / Rubber raw materials (natural and synthetic rubber)

Car maintenance business*1. OEM: Original Equipment Manufacturer; manufacturing of products sold under thename or brand of the contractee.
*2. ODM: Original Design Manufacturer. An ODM does everything from the development
and design to the production of a product that is eventually sold under anotherfirm’s name or brand.

Rawmaterials

B-Quik Co., Ltd. (Thailand)
PT BQuik Otomotif Indonesia (Indonesia)
B-Quik(Cambodia) Co., Ltd. (Cambodia)
Radial Llantas S.A.P.I. de C.V. (Mexico)

Lifestyle Division Strengths• Diverse product lines from apparel, footwear and lifestyle products toindustrial materials, textile materials and tire/rubber materials globally• Procurement networks and production bases for apparel, footwear andother products cultivated in the OEM*1/ODM*2 business• Eco-friendly business, aging society-related business, diverse producttrades, from raw materials to finished products, in field of functional
materials, such as textile materials and leather materials• Wide range of business development, encompassing upstream (rubber
raw material sales) to downstream (car maintenance and conveyor belt
distribution) business

Yarn

Consumers

FabricSewingRetailers(SPAs, etc.)

Circular supply chain

Growth-oriented Opportunities/Risks
Opportunities

Risks

Expansion of the consumer class in the wake of global population growth andrising standards of living in emerging economies

Rising costs in key production regions amid economic growth in emerging
economies

Diversifying customer and consumer needs, purchasing behavior and methods

Country risks in the regions and countries where we operate,
including deterioration in economic and social conditions

Growth in demand for eco-friendly materials, products and services amid a trend
toward sustainability
Rapid structural changes in logistics linked to adoption of digital/ IoT technologies

Business Strategy
Strengthen Lifestyle BusinessIn the OEM/ODM business, strengthen sales by leveraging capabilities in planning, proposals and short lead-time production
Boost efficiency from production to sales by utilizing digital technologies
Initiatives in new business models that reflect diversifying customer and consumer needs and buying behaviors

Build circular supply chains ineco-friendly business

Build circular supply chains using textile recycling technology developed by Circ, Inc.

Expand car maintenancebusiness and conveyor belt
distribution business

Expand store network in car maintenance business across Thailand, Mexico, Indonesia and Cambodia
Strengthen maintenance services and increase number of bases in conveyor belt distribution business in mainly North America
Initiatives to recycle end-of-life tires

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Consumer Products GroupIT Solutions Division

Global Business Portfolio

ARTERIA Networks
Corporation
Nationwide opticalfiber network
MX Mobiling Co., Ltd. ma Telecom Co., Ltd.
Docomo shop
au Style JOYPARKMiyamaedaira
Izumigaoka

Takashi Fujinaga(Japan)Chief Operating Officer,
IT Solutions Div.

Delivery business(U.S.)(Japan)Major Products and Areas
Digital Solutions / Mobile Solutions / Network Solutions / Supply
Chain Solutions

IT Solutions Division Strengths• Ability to provide comprehensive IT services that address customer
and societal needs from many angles, including consulting services forsolving business issues faced by customers, and system solutions
featuring the latest technologies• Ability to provide wide-ranging mobile phone-related services, centeredon industry-leading smartphone sales agency and SDG-conscious
handset reuse businesses• Development of network business leveraging our wealth of technicalexpertise in data communications, based on our involvement in thefield since the dawn of data communications in the 1990s, assets suchas our national optical fiber network, and industry-leading Internet
services for condominiums• Ability to develop and provide optimized supply chain solutions utilizing
multiple data sources, including logistics, and information from thefield, based on our wealth of experience and strong track record

GOM GmbH
Automated 3D Coordinate
Measuring System

Logistics Center(Germany)(Japan)Sole agent for exports ofKonica Minolta multifunction printers,commercial printers
and industrial printers to the Americas(U.S., Mexico, Brazil)

Growth-oriented Opportunities/Risks
Opportunities

Risks

Growth in opportunities to provide new DX solutions in response to changes in theeveryday environment and the economy linked to evolution of digital technologies

Contraction in domestic demand and markets in the wake of low birthrate,societal aging, and a shrinking population in Japan

Rising demand for smart devices, network equipment and security due to support for
the use of remote working environments and drive for greater operational efficiency

Stiffer competition to acquire IT personnel and higher fluidity in the job market
with the advancement of DX

Growth in corporate/personal data traffic, development of new communications
technologies and expansion in use scenarios for IoT

Obsolescence of products, services and distribution channels due totechnological innovations

Growth in e-commerce volume and increasing interest in building sustainablesupply chains

Labor shortages (drivers/other workers) and higher logistics costs due to growthof small-package deliveries, continued contraction in population and changes inlabor environment

Business Strategy
Reinforce functions and invest in
growth in digital solutions field

Strengthen existing businesses and operating companies (maximize business value of Marubeni I-DIGIO)
Further augment functions to provide cutting-edge IT and services, investment in growth fields and advance strategic partnerships

Expand business in mobile
solutions field

Increase value added in business by leveraging customer interactions in mobile phone sales agency business
Promote smart device reuse businesses as circular economy develops

Strengthen competitiveness andexpand services in network
solutions field

Strengthen the competitiveness of communications business by leveraging data communications infrastructure including
fiber-optic networks
Start new initiatives in cutting-edge technologies with growth potential, network security fields and overseas markets

Expand business in supply chain
solutions field

Promote development of category-specific logistics platforms business
Strengthen digital SCM* business, initiatives in publishing industry supply chain business aimed at realizing sustainable publishingsupply chains* Digital SCM: Digital Supply Chain Management. A business that leverages digital technologies to provide solutions that help improve the supply chain, including inventory optimization andimproved logistics efficiency.

82

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

83

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Consumer Products Group

Food Division- I

Global Business Portfolio
Danish Salmon A/SYAMABOSHIYA Co., Ltd.

Eastern Fish Company LLC(Denmark – Land-based recirculating
aquaculture systems for salmon farming)(Japan – Wholesale of confectionery products
to retail and convenience stores)(U.S. – Import and sales of
seafood products, primarily shrimp)

Tomonobu Miki

Iguacu Vietnam Co., Ltd.

Chief Operating Officer,
Food Div.- I(Vietnam – Manufacturing
and sales of soluble coffee)

BENIREI CORPORATION(Japan – Wholesale of seafood products
and warehousing)

Cia. Iguacu de Cafe Soluvel(Brazil – Manufacturing and sales of soluble coffee)

Marubeni Foods Corporation(Japan – sales of coffee, tea, fruit juice,agricultural products, processed foods,
food ingredients, etc.)

Major Products and Areas
Processed foods for retail and food service, dairy products / Foodingredients such as flour, sugar, fats and oils / Beverage ingredients suchas coffee, tea and juices / Ingredients and processed foods used in fresh
produce (agricultural, marine) sector

Acecook Vietnam Joint Stock Company(Vietnam – Processing and sales of wheat flour noodles,
rice flour noodles, bean starch vermicelli,and other food products)(Japan – Coffee roaster)Atrion Co., Ltd.
(Japan – Ramune candies, gumi drops andother confectionary production)

Food Division- I Strengths• No. 1 in sales in Japan in confectionary wholesaling sector, advanced
product development capabilities in confectionary production field• Approx. 30% share of Japan’s green coffee imports• Approx. 10% share of global market for B2B soluble coffee• Global procurement and sales capabilities for oils and fats,marine and agricultural produce, based on worldwide network ofoperating companies

COLORADO Corporation

Growth-oriented Opportunities/Risks
Opportunities

Risks

Growing demand across China, Asia and other emerging markets for high-quality
food products (such as coffee), driven by emergence of middle class

Changes in political/economic conditions within global supply chains(geopolitical risk)

Growing global interest in sustainable and stable food supply, environmentallyfriendly food business

Risk of natural disasters such as crop failures due to abnormal weather

Increasing importance of food science as consumer needs diversify, e.g., demandfor ethical sourcing

Difficulties sourcing raw materials due to resource depletion or tighter environmental
protection regulation

Business Strategy
Strengthen marketing ofspecialty foods

Build sustainable sourcing scheme for green coffee beans in cooperation with production origins and customers; expand thebusiness of specialty coffee
Expand, including handling of specialty oils and fats, notably olive oil and high oleic sunflower oil; strengthen related marketing
Respond to diverse consumer needs, such as in health/environment and strengthen environmentally friendly foods
ingredients business

Expand downstream fromtrading into manufacturing/processing sector

Acquire manufacturing and processing capabilities to establish a superior position in areas of strength such as confectionery,oils and fats, and fresh produce
Establish an optimized global supply chain in soluble coffee business based on ownership of manufacturing facilities in Brazil andVietnam, two major producing regions that supply over half the world’s coffee beans

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Consumer Products Group

Global Business Portfolio
Marubeni Nisshin Feed Co., Ltd. WELLFAM FOODS CORPORATION

Food Division- II(Japan – Manufacture andsales of livestock compound feed)(Japan – Production and marketing of poultry products, as well as production
and marketing of pork products and processed meat products)

Columbia Grain International, LLC(U.S. – Origination, storage, export,
and domestic sales of North American grains and beans)

Hidefumi Oya
Chief Operating Officer,
Food Div.- II

Pacific Grain Terminal Co., Ltd. Nippon Chunky Co., Ltd.
(Japan – Grain warehousing[Kagoshima Prefecture/Yatsushiro,
Kumamoto Prefecture/Mizushima, Okayama Prefecture],
stevedoring and transportation operations)Creekstone Farms Premium Beef LLC(Japan – Production and marketing of parent
stock, management of grandparent stock farms)

QINGDAO TIANRUN FOOD CO., LTD.

(U.S. – Processing and sales of premium box beef
in the U.S. and overseas)

Pacificor. LLC(U.S.)(China – Processing and sales of broiler chickens
and processed meat products)

Major Products and Areas
Meat and processed meat products / origination, sale, import/export
handling of grains and oilseeds (such as corn, wheat, barley, soybean,rapeseed, pulses/legumes) / Feed supplements (meal made from soy,rapeseed or fish) / compound feed

Great Wall Food (Dalian) Co., Ltd.
(China – Processing and sales of broiler chickens
and processed meat products)

Rangers Valley Cattle Station Pty. Ltd.
(Australia – feeding cattle and sales of box beef)

Terlogs Terminal Maritimo Ltda.
(Brazil – Grain transport,
storage and port handling operations)

Food Division- II Strengths• Owns high-quality beef suppliers in the U.S. and Australia, two top
beef-producing countries• Domestic share of 98% for parent stock used in broiler production;owns production facilities for poultry/pork• Owns broiler integration in China (at two sites), and producing further
processed products to suit customer needs• A global network extending from origination through sales of grain• Reliable supply of large volumes of grains to customers from grain silos
positioned throughout Japan

Growth-oriented Opportunities/Risks
Opportunities

Risks

Growing demand across China, Asia and other emerging markets for high-quality
food products (such as beef), driven by emergence of middle class

Changes in political/economic conditions within global supply chains(geopolitical risk)

Rising global demand for grains and meat

Risk of natural disasters such as crop failures due to abnormal weather

Changes in the business environment and demand due to environmental
problems and rising awareness of health
Expectations of productivity growth across farming and livestock industries
coupled with more opportunities to innovate using new technology

Labor shortages due to aging of population and growth of non-working population
Difficulties sourcing raw materials due to resource depletion or tighter
environmental protection regulation

Business Strategy
Ensure stable supplies of foods
and feed

Sustainably provide stable supplies of raw materials for flour milling and oil extraction (food chain staples) and feed materials foruse in animal protein and livestock feeds

Strengthen U.S. production forprocessed meat products

Increase volumes, income and exports by expanding facility at Creekstone Farms Premium Beef LLC (U.S.)

Strengthen broiler integrationin Japan

Develop production systems and reinforce sales strategy to support increased scale of operations at WELLFAM FOODS (Japan)

Strengthen grains and feedbusiness, and establish grain DX
businessStrengthen North/South America grain origination and Asian grain trading operations, advance grain processing business for
U.S. customers
Expand functions in domestic feed and silo business
Address social issues via adoption of digital technology for grain trading process and commercialization of feed and dairy
husbandry platform business84

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

85

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Consumer Products Group

Agri Business Division

Global Business Portfolio
Agri-inputs business

Agri-inputs businessMertens Holding B.V.

Agri-inputs business(Netherlands)

Marubeni Myanmar
Fertilizer Co., Ltd.

MacroSource, LLC(U.S.)(Myanmar)Agri-inputs business

Hidekazu Futai
Chief Operating Officer,
Agri Business Div.

Fertilizer spreading
Agronomist checking
strawberry leaves
Fertilizer processing andshipment sites

Agri-inputs businessAgrovista UK Ltd.

Major Products and Areas
Sales of Agri-inputs products (fertilizers, crop protection products,
seeds, proprietary products) / Subcontracting services for fertilizationand crop protection product application / Provision of precision
agriculture and other technical services / Contract of crop protection
product formulation / Fertilizer trading

Verification of crop growth conditions
with customers(U.K.)

Agri-inputs business

Monitoring ofbarley cultivation conditions
Potato fields in Minas Gerais

Agri Business Division Strengths• Capability to supply high-quality solutions to agricultural producers
through operating companies based around the world such as Helena
Agri-Enterprises, LLC (“Helena”), the second-ranked Agri-inputs
supplier in North America by market share

Helena Agri-Enterprises, LLC(U.S.)

Adubos Real S.A.
(Brazil)

Growth-oriented Opportunities/Risks
Opportunities

Risks

Need to improve agricultural productivity as global demand for foodstuffs
increases while the expansion of arable land area is limited

Risk of changes in grower income levels due to lower market prices for agricultural
products, weather risks

New needs relating to farming and food due to increasing concerns regarding
environmental issues and healthy lifestyles

Country risk due to changes in political or economic conditions

Business Strategy
Expansion of Agri-inputs sales
business in North America

Increase quality of customer-oriented services by Helena as a comprehensive solutions provider for agricultural producers,
promote Agri-inputs retail business by expanding sales areas by increasing number of bases
Strengthen fertilizer wholesale business through MacroSource, LLC, building on purchasing power created by network of around70 bases in North America along with trust and expertise developed over more than 40 years in the business

Development of Agri-inputs
business in Brazil

Since acquisition in 2019 of Adubos Real S.A., development of Agri-inputs retail business in Brazil, a market with major potential
due to ability to help satisfy global grain demand coupled with high internal demand for crops
Focus on expanding business by applying know-how developed by Helena in U.S. due to similar agricultural conditions inboth countries

Increase efficiency ofagricultural land by strengthening
Agri-inputs business

Reduce environmental impact and improve agricultural productivity through the development of proprietary products and services
that meet diverse needs in the agricultural sector

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Materials Group

Global Business Portfolio

Forest Products Division

KRAFT OF ASIA PAPERBOARD &PACKAGING CO., LTD(Vietnam – Containerboard manufacturing
and packaging materials sales business)

Tsuyoshi Teragaki(Brazil – Sanitary paper andhygiene products manufacturing andsales business)

M&M BIOMASS PTE. LTD.
(Singapore – Wood pellet sales business)

Chief Operating Officer,
Forest Products Div.

Paper manufacturing and sales companies
Six companies,
including Koa Kogyo Co., Ltd.,
Fukuyama Paper Co., Ltd.,Marubeni Forest LinX Co., Ltd.

Major Products and Areas
Wood chips and biomass fuel / Pulp and recovered paper / Paper,
paperboard, hygiene products / Building & construction materials andwood products

Forest Products Division Strengths• Value chain encompassing everything from forest plantation throughpaper end-product sales• Massive forest plantations in Indonesia and Australia, related forestry
know-how, and pulp plant• Sales networks in paper, paperboard, pulp and woodchip markets• Containerboard manufacturing/sales subsidiaries’ production
technology/know-how• Feedstock supply network for biomass power plants that help promote
the spread of renewable energy• Manufacturing/sales business for burgeoning sanitary paper market

Santher - Fábrica de Papel
Santa Therezinha S.A.

(Japan)PT. Musi Hutan Persada(Indonesia – Forest plantation business)

Marusumi Whangarei Co., Ltd.
(New Zealand – Manufacturing andsales business of woodchips for making paper)

PT. Tanjungenim Lestari Pulp and Paper(Indonesia – Hardwood pulp manufacturing
and sales business)

WA Plantation Resources Pty Ltd(Australia – Manufacture and sale ofwoodchips for making paper and biomass fuel)Growth-oriented Opportunities/Risks
Opportunities

Risks

Trend toward ESG and SDGs, most notably decarbonization and reduction ofplastic usage

Contraction in domestic demand in the wake of low birthrate and societal aging

Growing packaging demand in emerging economies

Faster decline in demand for printing and information paper due to changes inbusiness environment, including online and teleworking

Burgeoning sanitary paper and hygiene products market

Risk of change in profitability due to fluctuations in pulp prices

Eco-friendly materials that effectively utilize wood components

Business Strategy
Pursue economic value
and related environmental value
by using materials from forests

Plantation business in Australia and Indonesia contributing to local communities and environment through sustainable
forestry management
Working to stimulate Japanese forestry industry in cooperation with landowners, governments, cooperatives and other stakeholders
Generating carbon credits using forestry management know-how by focusing on the environmental value of forests

Enhance business value
in manufacturing andsales of hygiene products

Focusing on creating additional value at Santher - Fabrica de Papel Santa Therezinha S.A. by promoting sales of premium products
and developing sales channels
Development of hygiene products manufacturing/sales business in other regions
Expand products and services that help customers maximize their lifetime value, starting with the hygiene products manufacturing/sales business

Strengthen growth incontainerboard manufacturing/sales business in Vietnam

Initiatives to stimulate growing demand for containerboard in Vietnam
Focus on early monetization by continuing stable operations and reducing costs
Making operations eco-friendly through considerations of the installation of solar power and boilers for waste incineration

86

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

87

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Materials Group

Chemicals Division

Global Business Portfolio
Commodity trade (olefin, PVC resins, caustic soda, etc.)
Expandingoperations witha focus onlife sciences

Roughly 30% share of
global marine trade in
olefin products

Orffa International
Holding B.V.
(Netherlands – Feedadditives distributor)

Satoru Ichinokawa
Chief Operating Officer,
Chemicals Div.

World’s largest shipmentof U.S. ethylene in one lot

Euroma Holding B.V.
(Netherlands – Spices/
seasonings manufacturer)

Major Products and Areas
Basic petrochemical products and plastic derivatives / Salt, PVC andchlor-alkali products / Life science-related products such as foodfunctional ingredients, feed additives, oleochemicals and personal careingredients / Electronic materials, inorganic mineral resources, fertilizer
materials and inorganic chemicals

Expanding environmentally attuned
businesses such as electronic materials
and renewable energy

Chemicals Division Strengths• Broad trading platform with links to many industries• Roughly 30% share of global marine ethylene trade• PVC, chlor-alkali trade with capacity to respond to changes in
global markets• The high industry presence of Orffa International Holding B.V. in thefeed additives market• Spice-based, natural and tasty total solutions for food industry
partners by Euroma Holding B.V.
• Value-chain businesses from scarce resources to downstream inelectronics field• Partnerships with top players in trading of diverse chemical products

Energy Storage Systems
Batteries

Global chlor-alkali traderwith integrated supply
chain extended fromfeedstock salt business
Dampier Salt Limited(Australia – Production andsales of solar salt and gypsum)

Tomioka Solar Farm (Japan)

Growth-oriented Opportunities/Risks
Opportunities

Risks

Development of life sciences and related businesses set to grow in tandem withpopulation growth

Trade in petrochemical and other products highly sensitive to market price changes

Entry into solar power-related businesses that will spur uptake of renewable energy

Credit risks caused by decline in operating rates and deteriorating earnings at
trading partners, due to global economic slowdown

Development of AI-based diagnostic support businesses to solve social challenges
such as physician shortages and regional gaps in healthcare provision

Downturn in global trade caused by geopolitical and economic risks

Business Strategy
Reinforcing initiatives in life
sciences field

Orffa International Holding B.V., based in the Netherlands, is driving global business expansion in the feed additives industry throughnew investments and business partnerships in North America and Asia
Expand food ingredients business, leveraging strategic partnership with Euroma, one of Europe’s leading spice andseasoning companies

More advanced
trading operations

Advanced supply/demand adjustments functions in petrochemicals, PVC and chlor-alkali trade, build a high-value-added logistics
platform to ensure reliable transactions and supply in the sulfur trade
Promote high-quality service-providing businesses in specialty fields, such as electronics represented by storage batteries, displays,
and solar power generation equipment

Strengthen Green Business

Marubeni’s long-term chartered ethylene carriers use a fuel mix with 25% biodiesel made from waste cooking oil, and voyage between
the Netherlands and U.S.
Contribute to reliably supply of electricity through ownership and operation of battery systems for power grids, help accelerate
introduction of renewable energy batteries

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

88

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Materials Group

Metals & Mineral Resources
Division

Global Business Portfolio
Iron ore

Coking coal

CopperAluminum

Lake Vermont coal mine
(Australia)

Alouette aluminium smelter

Portland aluminium smelter(Canada)(Australia)

Daisuke Tsuchiya
Chief Operating Officer,
Metals & Mineral
Resources Div.

Roy Hill iron ore mine
(Australia)

Jellinbah East coal mine
(Australia)

Antucoya copper mine

Major Products and Areas
Mine development, production and sale of copper, iron ore, coking coal /Smelting and refining of aluminum, magnesium / Trading of steel andrelated raw materials, ferroalloys, and cement-related materials / Tradingof non-ferrous metals, ingots, and related products / Trading of battery
materials / Steel product trading and business investment / Leasing of
temporary steel construction materials / Recycling of scrap iron,
non-ferrous metals, rare metals and used batteries

Metals & Mineral Resources Division Strengths• Development of copper, iron ore and aluminum businesses withblue-chip partners, all fields that are essential to economic development
and decarbonization• Strong earnings base anchored by equity stakes in globally
cost-competitive mines and smelters, coupled with world-leading efforts
to promote greener operations via adoption of renewable energy,
automation and electrification• World-class trading base handling broad range of products, including
eco-friendly recycled materials to contribute to the creation ofa circular economy• Worldwide steel distribution network leveraging a business base,know-how and networks built up over many years(Chile)Hail Creek coal mine (Australia)
German Creek East coal mine (Australia)

Boyne aluminium smelter

Centinela copper mine
(Chile)Los Pelambres copper mine
(Chile)(Australia)

Growth-oriented Opportunities/Risks
Opportunities

Risks

Long-term growth in demand for metals and mineral resources supported by
global economic growth and decarbonization

Changes in commodity prices and other market fluctuations that directly
impact earnings

Growth in demand for non-ferrous metals driven by digitalization of society and theadoption of renewable energy and electric vehicles (EVs)National policies and geopolitical factors that affect the investment andtrading businesses

Growing emphasis on sustainability worldwide

Changes in business environments due to societal transition to a carbon-free,circular economy

Business Strategy
Strengthen, expand and greenify
core businesses

Ensure stable operations and reinforce cost competitiveness for existing assets through introduction of advanced technology
and automation
Organic growth via investments to expand Centinela copper mine in Chile, expand future mining tenements and maximize use of
infrastructure held by Roy Hill iron ore mine in Australia, and develop new mines from medium- and long-term perspective
Greenify operations by procuring renewable energy, electrifying trucks and preserving water resources

Strengthen andadvance decarbonization andenvironmental/recycling businessinitiatives

Supplying materials (copper, aluminum, scrap, battery metals, etc.) for which demand is projected to grow due to global transitions
such as decarbonization and development of circular economy
Participation in lithium-ion battery recycling business through investment in Cirba Solutions, LLC in the U.S., initiatives in productionof magnesium from mine tailings
Initiatives in CCS projects

Address customer needs andsocial issues through materials
business and trading

Expand trading by tapping into consumer needs and delving into issues in industry networking by interfacing with broad range ofindustries that use metals
Help customers with “responsible procurement,” proactively obtain certifications from third parties and international institutions
for existing assets, including copper and aluminum, and develop sustainable supply chains by ensuring traceability

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

89

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Energy & Infrastructure Solution GroupNew Energy Business
Development Department

Global Business Portfolio
Hydrogen and ammonia production (global supply chain) Hydrogen local production for local consumption supply chain
Sustainable Aviation Fuel (SAF) and e-methane production

SAF: U.K.
SAF

Wataru Ikushuma
General Manager,
New Energy Business
Development Dept.

SAF
Green ammonia: Oman

Clean ammonia:
Western Australia

Major Products and Areas*1. SAF: Sustainable Aviation Fuel. Aviation fuel derived from non-fossil raw materials
that satisfy low-carbon standards.
*2. e-methane: Synthetic methane produced derived from non-fossil energy.

Clean ammonia: U.S.

e-methane: Peru

Green hydrogen:
Queensland

Green hydrogen:South Australia

Green ammonia: Tasmania

Growth-oriented Opportunities/Risks
Opportunities

Risks

Market expansion in new energy (hydrogen, fuel ammonia, synthetic fuels, etc.)
amid decarbonization movement in Japan and overseas

Increase in new energy production and transportation costs, including operating
costs for production facilities and new energy

Development of new energy technologies and advances in system designs

Stall in momentum, changes in government policies toward decarbonizationin countries
Changes in business environment due to changes in decarbonization-related
standards and systems

New Energy Business Development Department
Strengths• Leveraging the business foundations and strengths of the Energy
Division, the Power Division, and the Infrastructure Project Division, we
will establish a new energy supply chain from production to utilization• Creating new businesses by bringing together human capital withdiverse backgrounds and expertise• Utilizing our knowledge, know-how, and network in the new energy
field acquired through demonstration projects in Japan and overseas

Blue ammonia: West Canada

SAF: Abu Dhabi

In the fiscal year ending March 31, 2024, the New Energy
Business Development Department was established in the Energy& Infrastructure Solution Group to reinforce initiatives in newenergy-related businesses.

Hydrogen and fuel ammonia production business, trading and marketing /hydrogen retail business (hydrogen refueling station business) / synthetic
fuels production business (such as SAF*1 and e-methane*2), trading andmarketingHydrogen refueling station
development

Green hydrogen: Saudi Arabia

Business Strategy
Development of hydrogen andfuel ammonia production
business

Initiatives in large-scale hydrogen and ammonia production business to meet demand for fuels used in power generation based on
expectations to contribute to decarbonization
Screen for prime projects among those from business bases and existing transactions in Japan and overseas; build a diversified
business portfolio in terms of regions and production methods
Business development leveraging experiences, knowledge and networks accumulated in development of power generation
business and infrastructure businessTrading and marketing ofhydrogen and fuel ammonia

Business development utilizing experiences and knowledge in trading and marketing of petroleum products, LNG and chemicals
Collaboration with partners in Japan and overseas, including customers such as Japanese electric power companies
Tap into demand, including captive demand of Group power plants

Business expansion in synthetic
fuels, such as SAF and e-methane

Initiatives in business development in partnership with customer airline companies to meet expanding demand for SAF in airline sector
Initiatives in renewable energy-rich countries, such as e-methane production business that contributes to carbon neutrality in city
gas industry

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

90

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Energy & Infrastructure Solution Group

Global Business Portfolio

Energy Division
LNG plants

RisleyKoichi Uchida
Chief Operating Officer,
Energy Div.

LondonErlangenLong Beach

Danbury

HoustonSingapore
Jakarta

Lima

Port Moresby
Johannesburg

Domestic logistics
and marketingbusiness
Emission reduction
project

Energy Division Strengths• Capability to meet energy demand in Japan and overseas throughproduction, trade, logistics, and marketing of oil, natural gas, LNG, andother fuels• Nuclear energy business that adds value throughout the supply chain• Initiatives at decarbonization, such as carbon credit trading anddevelopment of emission reduction project, expansion of biofuel
trading

Uranium mining
interests

DenverTokyo
New Delhi
Seoul
Doha
Taipei
MuscatAbu Dhabi
ManilaYangonMajor Products and Areas
Natural gas business (production, liquefaction, and trading) / Exploration,
development, and production of oil and gas / Petroleum and LPG
trading, distribution, and marketing business / Nuclear energy business(development of uranium mining, nuclear fuel cycle, and related equipment
sales and services) / Development of emission reduction project andcarbon credit trading

Beijing

AlmatyOil and gas fieldinterests

Growth-oriented Opportunities/Risks
Opportunities

Risks

Amid transition to low-carbon and carbon-free societies, expansion in natural gas,
LNG, nuclear power and related business

Volatilities in natural resource prices and changes in the regulatory framework andgeopolitical conditions

Initiatives at decarbonization, such as carbon credit trading and development ofemission reduction project, expansion of biofuel trading

Changes in business environment from shift to renewable energy and lowcarbon energy

Business Strategy
Expansion growth in oil and gas
upstream and LNG businessWith the energy sector entering a transition period on the path to a carbon-free society, where natural gas and LNG continue toplay an important role, we will expand and increase the value of existing businesses from upstream through to downstream in the
supply chain

Strengthening transactions andexpand scope in trading andmarketing businessWe aim to utilize our infrastructure and networks in Japan and overseas to expand trading in oil, natural gas, LNG, and other fuels tomeet demand for energy. We also intend to expand business scope by increasing biofuel trading, carbon credit trading, anddevelopment of an emission reduction project

Provide total solutions in nuclear
power supply chain business

Provide equipment and services related to nuclear business, implement uranium trading and nuclear fuel cycle business,participate in uranium upstream development business, and strengthen initiatives throughout the supply chain

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

91

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Energy & Infrastructure Solution GroupPower Division

Global Business Portfolio
Power generation business
SmartestEnergy Ltd.

Power service and retail business
Chenya Energy Co., Ltd.

Wholesale and retail powersales business (U.K.)

Development and operation of solar
power IPP projects (Taiwan)

Business Development in Japan
Offshore Wind Farm Project at
Akita Port and Noshiro Port

ScotWind Project

Marubeni Power
Retail Corporation

Acquisition of seabed leasing rights fordevelopment of large-scale floating offshore
wind farm, under development (Scotland)Satoru Harada

Major Products and Areas(Qatar)*1. Fuel to Power: Integrated business from procurement of fuel (gas) to storage andpower generation.
*2. V2X (Vehicle-to-X): Using the storage batteries of EVs to supply electricity tobuildings (Vehicle to Building), and to provide supply and demand adjustment topower grids (Vehicle to Grid).
*3. EPC: Engineering, Procurement and Construction.

Power Division Strengths• Active development of renewable energy generation projects to help
realize a low-carbon society• In Japan and overseas, strong regional marketing capabilities, industry
top-class IPP* track record, EPC management capabilities, excellent
asset management organizations• Vast experience in wholesale and retail power sales, diverse trackrecord in electric power services business• Through a combination of these functions, provide comprehensive
energy solutions that solve complex issues of customers* IPP: Independent Power Producers.

Courtesy of Akita Offshore Wind Corporation

Gross Generation Capacity

36,512 MW(As of March 31, 2023)

Jamaica Public Service
Company Ltd.

Vertically integrated regulated
power utility(Jamaica)

Renewable energy power
generation business

Biomass power generation
business in Kobe, Gifu Prefecture
Rabigh Solar PV IPP Project(Saudi Arabia)

Power generation business (Renewable energy generation / Fuel to Power*1
projects / Gas-fired and other thermal power generation) / Power service andretail business (Retail power sales / Decentralized power generation / Smartcities and community-based multi-utility services / Storage, VPP, V2X*2, andaggregation business / New businesses / EPC*3 business and O&M business)

11,550 MW

Mibugawa
Electric Power Co., Inc.

Smart city development (Philippines)

Al Kharsaah Solar PV
IPP Project

Net Generation Capacity

Retail power sales business

New Clark City

Chief Operating Officer,
Power Div.

Marubeni’s Global Generation Assets

Marubeni Eneble Corporation
Online sales of solar power generationand storage systems

Omakase EV for Biz
EV dispatch optimization system for corporations

Jawa-1 Gas-to-Power Project

Rantau Dedap
Geothermal IPP Project(Gas-fired power plant and floatingstorage and regasification unit (FSRU))(Indonesia)(Indonesia)

Green hydrogenproduction demonstration (Australia)

San Roque Hydroelectric Power Project

Decentralized
power generation business(Philippines)

Rooftop solar PV system (Mexico)

Growth-oriented Opportunities/Risks
Opportunities

Risks

Strong demand for renewable energy worldwide

Rapid shift to low-carbon energy in society

Importance of resilient and reliable electricity supply and supply-demand
adjustment functions

Heightened global supply and price volatility affecting natural resources and energy

Changes in energy policy, such as expansion of liberalization in electric power sector
Introduction of digital technologies in electric power sector

Weather and geopolitical risks that would affect electric power supply-demand andmarket prices

Demand for new power-related services as society transitions to carbon neutrality

Supply chain disruptions

Greater volatility in power supply-demand balance as renewables increase

Business Strategy
Strengthen growth inrenewables-led power IPP
business

Expand renewable energy generation projects in Japan and overseas, including offshore and onshore wind, solar, biomass andhydroelectric power
Promote LNG to Power and other gas-fired power generation projects to satisfy needs of society transitioning to carbon neutrality
Co-firing of biomass and green hydrogen/ammonia for low-carbon future

Strengthen growth in retail powersales business, decentralized
power generation businesses

Reinforce and expand target market for retail power sales business/decentralized power generation businesses in and outside ofJapan, as well as creating their business platforms
Reinforce trading and supply/demand adjustment functions / Expand product lineup
Upgrade product lineup, including menu of renewable energy options

Provide comprehensive energy
solutions that solve complex
issues of customers

Expand community-based power services by developing packaged models including decentralized renewable energy andhydrogen, and urban decarbonization
New projects in efficient power utilization by applying digital technologies
Supply/demand adjustment using battery storage and ancillary services for power grids where renewable energy is introduced
Provision of energy management services for consumers to enable peak shifting, demand controls, optimized EV charging, etc.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

92

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Energy & Infrastructure Solution Group

Global Business Portfolio

Infrastructure Project Division
Gas transportationand storage (Latvia)

Waste-to-energy plant
construction(Thailand)

Kei Tomomi
Chief Operating Officer,
Infrastructure Project Div.

Carbon capture,utilization andstorage• Project origination capabilities leveraging networks with various
stakeholders such as customers, engineering firms, contractors,
financial institutions, and institutional investors• Project development, structuring, execution, and management
capabilities in infrastructure backed by extensive track records ofinvestment, EPC, and trade• Wide range of functions covering the entire value chain from projectplanning, feasibility studies, financing, EPC, operation, maintenance,business operation, to asset (including fund) management

Bio-methane production
and sales(U.S.)(Philippines)

Supply of railway systems(Philippines)

Gas distribution

Gas transportation (Australia)(Portugal)

FPSO Charter Service(Brazil)Railway PPP (Australia)

Water and wastewater
services (Portugal)

Gas distribution and retail
Water and wastewater services (Chile)
Fertilizer production(Bangladesh)(Chile)Hospital PPP (Australia)

Opportunities
Growing demand for development and renewal of social infrastructure as well as
know-how and financial resources from private sector
Improvement in the appetite for investment of long-term and stable assets byinstitutional investors
Growing business opportunities related to decarbonization and circular economy due
to greater environmental awareness

Desalination andwater transmission(Chile)Growth-oriented Opportunities/Risks* EPC: Engineering, Procurement and Construction.

Infrastructure Project Division Strengths(Mexico)Water and wastewater services(Saudi Arabia)(U.K.)(Kenya)Water business (water supply, wastewater treatment, desalination, etc.) /Transportation infrastructure (railways, roads, ports, etc.) / Social
infrastructure (hospitals, schools, arenas, etc.) / Energy infrastructure(gas distribution & retail, oil & gas production, processing, transportation,
storage, etc.) / Decarbonization and circular economy business(waste-to-energy & fuel, carbon capture, etc.) / Infrastructure-related EPC*,
operation, maintenance (railway systems, water, energy, industrial plants,
waste-to-energy power plants, etc.) / Management of infrastructure funds

Road PPP(Japan)Desalination BOO
Project

LPG retail

Major Products and Areas

Construction, operation,and maintenance of public
and private facilities

Risks
Increase in costs due to higher interest rates
Change of national policies and regulations that impact business development in
the infrastructure field
Decline in demand for fossil fuels (including natural gas) as decarbonization
accelerates

Increase in value of infrastructure service linked with technological innovation

Business Strategy
Expand water andwastewater
infrastructurebusiness

Improve profits from existing concessions by boosting
operational stability/efficiency
Build stable long-term earnings base by developing new
BOT/BOO*1 projects
Growth/expansion, including entering new markets throughoperating companies
Initiatives to effectively use water resources by digital innovations

Expand energy
infrastructurebusiness

Grow/expand existing gas infrastructure business, initiatives indecarbonization-related opportunities through customer baseParticipate in receiving terminals business for the gas (LNG/
LPG) needed as transitional fuelSpeedy development of initiatives relating to decarbonizationand circular economy

Expandtransportation
infrastructurebusiness

Participate in O&M*2 concession businesses in railway field
Expand railway maintenance business using existing andextended EPC projects
Expand PPP*3 business by leveraging track record in Australia

Expandinfrastructure
funds and social
infrastructurebusiness

Complete investments in #1 Fund, manage #1 Fund,establish and invest in #2 Fund
Expand social infrastructure PPP business (venue business*4,
hospital facility management, etc.)*1. BOT: Build, Operate and Transfer; BOO: Build, Operate and Own.
*2. O&M: Operation and Maintenance.

*3. PPP: Public-Private Partnership.
*4. Venue business: private sector-led development of regional facilities.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Transportation & Industrial Machinery, Financial Business Group

Global Business Portfolio
Civil Aviation Sector

Aerospace & Ship Division

Swissport Japan Ltd.

HondaJet Elite

Magellan Aviation Group LLLP

(Japan – Ground handlingbusiness)

Toru Okazaki(U.S. – Aircraft parts tradingbusiness)

Chief Operating Officer,
Aerospace & Ship Div.

Defense/Security Environment/
Space Sector

Ship Sector

Major Products and Areas
Aircraft & engine parts trading business, asset management,
development investment / Sales representatives for commercial
aircraft and defense equipment / Space-related projects / Air
mobility field / Business jet sales agency and related operations /Airport-related business / Sale, purchase, chartering of merchantships / Ownership and operation of ships / Shipping pool businessand ship fund business / LNG and other liquefied gas carriers
business / New businesses related to ships

Merchant ships

LNG carriers

MaruKlav

Interstellar Technologies Inc.

(Trading, fleet ownership/
operation)(Fleet ownership/operation)(Shipping pool business)(Japan – Development and manufacture ofsmall rockets and launch service business)

Growth-oriented Opportunities/Risks
Opportunities

Aerospace & Ship Division Strengths• Increasing the value of aviation assets through lifecycle-attuned businessdevelopment of aircraft• Deep insights into customer/market needs and solutions proposal
capabilities gained from operating a broad array of businesses in
the aerospace and defense industries• Business capabilities in management of ownership and operation ofvessels ranging from merchant ships to LNG carriers• Solutions development and consulting, based on advanced expertiseand networks in ship trading, investing and financing

Risks

Recovery in demand for aircraft passenger and operating & maintenance-related
services

Fall in demand for air travel and increases in jet fuel prices due to risk of events
such as terrorism, regional conflicts, wars, and epidemics

Future potential of space-related business across wide range of sectors

Volatility in new-build ship pricing and/or marine freight rates

Growth in ship demand driven by growth in seaborne cargo amid trend towardborderless global economy

Higher manufacturing and operational costs for aircraft and ships due to stricter
environmental regulations

Business initiatives utilizing innovative green and digital technologies within the
shipping sector

Business Strategy
Try new business fields in
Aerospace & Ship Division

Try to rapidly expand into new business domains while seizing opportunities provided by changes in the aerospace and shipping
business environment
In aviation field, advance creation of businesses in air mobility field and aerospace domain while developing autonomous vehicles foruse in airports
In ship field, advance efforts to create businesses related to autonomous ship, wind propulsion systems and digital platform forship crews

Expand business in aviation,
airports and defense fields

Reinforce operations through development of sector businesses in aircraft parts trading, maintenance, and related asset
management
In airport ground handling, strengthen and expand cargo shed business and launch a new lounge business
Besides developing sales agency business for aircraft, helicopters and varied types of defense equipment, expand into new areas ofthe security arena

Expand business in fleet
ownership / operating andtrading field

Supply broad range of functions from the creation of ownership structures to the management of fleet operations and related
revenues for merchant ships and LNG carriers
Pursue initiatives aimed at building up the division as a ship service provider by upgrading quality and profitability of shipping assets
Develop trading of new and secondhand vessels, charter brokerage, as well as finance and fleet asset management businesses

93

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

94

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Transportation & Industrial Machinery, Financial Business Group

Finance, Leasing & Real EstateBusiness Division

Global Business Portfolio
Auto finance business Aircraft/aircraft engine leasing business General leasing business Leasing of various commercial vehicles and freight railcars
Private equity investment/management Next-generation finance business Real estate investment business Housing development project Insurance businessHousing development in Changchun

TDF Group Inc.

Midwest Railcar Corporation(China – Housing development project)(Canada – Commercial vehicle rental/leasing,wholesaling, retailing)(U.S. – Railcar leasing brokerage/
third-party asset management)

P.T. MEGA CENTRAL FINANCE
P.T. Mega Auto FinanceTaro Kawabe
Chief Operating Officer,
Finance, Leasing & Real EstateBusiness Div.

(Indonesia – Motorbike/automobile finance businesses)

Mizuho Marubeni Leasing Corporation• Tight alliances with top-caliber partners worldwide, including Mizuho
Leasing Company, Limited• Profound expertise in general leasing operations and specialized leasing,business development in growth fields such as mobility financing andaircraft leasing• Know-how in improving corporate value in private equity fund business,ability to propose solutions in insurance business• Real estate management and development leveraging Marubeni’s
global network• New businesses that utilize DX, such as next-generation finance(U.S. – Refrigerated trailer leasing/rental business)

iSigma Capital Corporation(Japan – Private equity investment and management)

Nowlake Technology, LLC

Aircastle Limited(U.S. – Private used auto finance)(India – Real estate investment)(U.S. – Aircraft leasing)Marubeni Safenet Co., Ltd.
(Japan – Insurance business)

Auxilior Capital Partners, Inc.*

Marnix Group(U.S. – Vendor Finance business)(Japan, Singapore, U.K. – Insurance business)

AND Global Pte. Ltd.
(Singapore – Next-generation finance business)

Japan Infrastructure Fund Advisors Ltd.
(Japan – Infrastructure fund management business)

Total Engine AssetManagement Pte. Ltd.
(Singapore – Aircraft engine leasing)

MARUBENI HOLDING LIMITADA(Chile – Auto finance/retail)

MAHA Finance Pty Ltd.
(Australia – Private used auto finance)

Marubeni Real Estate Development Co. Ltd. / Japan REIT Advisors Co., Ltd. / Marubeni
Asset Management Co., Ltd. / Marubeni Real Estate Management Co., Ltd. / Mitsubishi
Jisho Community Holdings Co., Ltd. / Marubeni Arch-LOG Co., Ltd. / LIFEM Inc.
(Japan – Real estate investment/Housing development projects, Femtech business)

Growth-oriented Opportunities/Risks
Opportunities

Finance, Leasing & Real Estate Business
Division Strengths

PLM Fleet, LLC(Japan – General leasing)

Housing development projectin Mumbai City

Major Products and Areas
Auto finance business / Aircraft and aircraft engine leasing business /Fleet management business (rental and leasing business of refrigerated
trailers, commercial vehicles, and freight railcars) / General leasing &non-bank business / Next generation finance business, Femtech-related
services / Private equity fund investment and management business,domestic investment business / Domestic and overseas real estatedevelopment / REIT, fund management business / U.S. real estate asset
management service business / Insurance businessFemtech business* Investment via Mizuho Marubeni Leasing

Risks

Expansion of market share in auto finance business in N. America, expansion ofcommercial vehicle fleet management services and business domains

Higher credit risk and increase in interest rates to reign in inflation, slowdown in
consumer spending due to inflation in countries around the world

Recovery in demand for air passenger transportation, growth alongside economic
development in emerging countries

Stalled recovery in demand for air passenger travel due to emergence of new wars
and conflicts, spread of infectious diseases, and rising fuel costs

Solutions for management issues at domestic companies via M&A, growth inbusiness succession needs

Decline in housing demand due to population/market contraction linked to lowbirthrates and higher life expectancy in Japan; increased development costs due tohigher material prices

Robust investment needs from property investors worldwide for revenue-generating
properties, growth in housing demand in developing countries
Growth in DX-based next-generation financial fields, more efficient distribution inarchitectural and construction sectors, response to greenification

Obsolescence of business models due to DX and technological innovation,
decrease in asset values due to higher awareness of environmental problems

Business Strategy
Alliances with business partners,
promote green tech and DX,
human resource strategy

Reinforce alliances with our leading partners worldwide including Mizuho Leasing Company, Limited, mutually share know-how
and resources
Provide services and build up assets in line with Marubeni Group’s environmental strategy, strengthen earnings power in businesses
by leveraging DX
Development of talent with global leadership capabilities and development of change leadership ability at organizational level

Growth strategy in finance,leasing, corporate investment,
and insurance fields

Expand assets in auto loans, augment mobility-related businesses, such as fleet management services that contribute toenvironmental strategies
Accumulate quality assets in leasing (such as aircraft, aircraft engines, refrigerated trailers, and freight railcars)
Expand private equity fund management operations, provide services throughout value chain in insurance field

Growth strategy forreal estate business

Expand scale of asset management for listed J-REITs and private REITs, develop multiple earnings streams, including in
related operations
Promote development of real estate in Japan and overseas using wealth of expertise gained across housing, office, commercial
and logistics sectors

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

95

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

Transportation & Industrial Machinery, Financial Business Group

Construction,
Industrial Machinery & Mobility
Division

Global Business Portfolio
Automotive sales andafter-sales service
businesses, mobility
service businesses

Aftermarket business

Auto dealerships

EV fleet management

EV fast-charging equipment(U.S.)(U.K.)(Japan, ASEAN)(U.S.)

Kazuhiro Kondo
Chief Operating Officer,
Construction, Industrial Machinery& Mobility Div.

Major Products and Areas
Construction/mining equipment sales and related services, financing /Automotive aftermarket sales, dealerships and used car sales /Commercial EV fleet management / MaaS (Mobility as a Service),
Autonomous vehicles / Sales, services and related peripheralbusinesses of auto production equipment and machine tools, industrial
equipment / Distribution of electronic components and machine parts

Construction, Industrial Machinery &Mobility Division Strengths• Sales, marketing, investment, and operational know-how amassed
over decades through business activities in Japan and overseas• Workforce of professionals well versed in their respective industries• Diverse lineup of products and services, including trading,wholesaling, and retailing, that meet a wide range of customer needs
both domestically and internationally• Strong relationships of trust with global top-tier manufacturers• Global information network linking domestic and overseas operatingcompanies, overseas corporate subsidiaries and the Tokyo Head Office• Driving force for creating new businesses from zero to one while
actively taking on challenges in new fields

Distributor/product support business forconstruction and mining equipment

Contributions to manufacturing aroundthe world in a broad range of industries

Product support businessfor mining

Electronic component
distribution business

Machine tool sales,
DX for industrial machinery(Japan)(U.S., Japan)

Distributor business(U.K., Turkey, Philippines, Vietnam)(Australia, South America,
Mongolia, Ukraine)

Growth-oriented Opportunities/Risks
Opportunities
Stronger demand for vehicles as population grows and middle-income classexpands, stronger demand for logistics vehicles as e-commerce grows, andstronger demand for social infrastructure maintenance and updatesExpansion of new demand due to decarbonization, demographic changes,
digitalization and other changes in society
Diversification of supply chains and expansion of business domains in which AI, IoT,
automation, and other new technologies are used

Risks
Emergence of manufacturers in emerging countries, decline in advantages ofhandled products
Obsolescence of and changes in existing markets due to technological innovation,risk of competition from new entrants from other sectors
Country risks in the regions and countries where we operate, including deteriorationin economic and social conditions

Business Strategy
Expand business related toconstruction machinery

Expand scope of sales and distributor business to include handling-related and peripheral products
Develop general construction machinery leasing operations in Japan and around the world
Develop new businesses to leverage DX, decarbonization and electrification trends

Expand business related toindustrial systems and mobility

Expansion of U.S. auto aftermarket business and expansion of business domains
Expansion and transformation of U.K. auto dealership business and used vehicle sales businessRealize on-demand transportation and self-driving cars to solve social issues, such as driver shortages, and an aging society
Promote green business, such as sales of commercial EVs and EV fleet management business

Expand business related toindustrial machinery

Realize labor savings and automation at manufacturing sites with IoT and DX services
Expand electronic components business and expand business domains
Propose new solutions for decarbonization and supply chain diversification
Enter into machinery parts distribution, new materials and paper container field

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

96

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

CDIO

Global Business Portfolio

Next Generation Business
Development Division

Investment in a company
that develops and produces
ultracapacitors(Estonia)
Pharmaceuticals
distribution(China)Masayuki Omoto
Chief Operating Officer,
Next Generation Business
Development Div.

Consumer brand business

Beauty (brands) business(Japan, South Korea)(Japan)Offshore DX
business

Clinical laboratory
testing service,
IVF business(Bangladesh)(Philippines)(Vietnam)Industrial parkdevelopment/operation(Myanmar)

Major Products and Areas
Pharmaceuticals and medical devices / Medical services /Next generation industrial park / New technologies / Offshore DX* /Wellness and beauty / Consumer brands / Metaverse / Education /Other high-growth domains* Offshore DX refers to the outsourcing to or ordering of a part of system developmentfrom an overseas company.

Next Generation Business Development
Division Strengths• Structured to operate with agility and speed and to specialize ingrowth domains• Development and construction of new business models focusing on
solving social/ customer issues regardless of the product verticals of
existing businesses• Systems capable of drawing on Marubeni’s strengths• Search for and pursue new high-growth fields around the world

Industrial parkdevelopment/operation

Pharmaceuticals
distribution(UAE)

Beauty (distribution) business(Malaysia)

Investment in blockchain
development(Singapore)

Hospital businessIndustrial parkdevelopment/operation(Indonesia)

Growth-oriented Opportunities/Risks
Opportunities

Risks

Expansion of consumption power due to the rise of the middle-income
demographic in Asia

Risk of players with innovative technologies and business models appearing fasterthan expected

Expansion of next generation social infrastructure (urbanization/smartification)

Country risks in business regions/countries due to evolving political, economic andsocial factors

Carbon-free society/circular economy
Expansion in high-quality medical needs and rise in health awareness
Shifts in consumption trends and values among millennials/Gen Z* consumers* Millennials: General term for the generation of people born from the early 1980s to the mid-1990s.
Gen Z: General term for the generation of people born after the mid-1990s.

Business Strategy
Expand businessin next-generation social
infrastructure field

Participate in smart city development projects using smart technologies in environment and digital; seek to expand/upgrade
operation of next generation industrial parks
Seek to build upscaled operations entering new technology domains such as offshore DX and ultracapacitors (next generation
storage batteries)

Expand business in healthcare/
medical field

Strengthen global network for high-quality pharmaceutical and medical device products through sales to Japanese manufacturers
and by leveraging sourcing capabilities and sales functions in China and the Middle East
Develop hospital-related services business by applying knowledge gained from clinical laboratory testing service (Philippines),
hospital (Indonesia) operations

Expand business foundation,
brand portfolio in wellness field

Expand business in brands and distribution by leveraging knowledge in management of cosmetics retailing business in Malaysia
with AINZ & TULPE and capital relationship with SHIGETA PARIS, a beauty brand
Develop new brands and expand scope of existing consumer brands

Look for opportunities to createnext-generation businesses

Pursue opportunities to create next generation businesses in blockchain, metaverse and other high-growth fields
Mainly develop solutions for schools and educational institutions throughout Asia based on our partnerships with educators andeducation content providers

MARUBENI CORPORATION INTEGRATED REPORT 2023

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Business Portfolio

97

Corporate Data

Consumer Products Group / Lifestyle Division / IT Solutions Division / Food Division- I / Food Division- II / Agri Business Division / Materials Group / Forest Products Division / Chemicals Division / Metals & Mineral Resources Division /Energy & Infrastructure Solution Group / New Energy Business Development Department / Energy Division / Power Division / Infrastructure Project Division / Transportation & Industrial Machinery, Financial Business Group / Aerospace & Ship Division /Finance, Leasing & Real Estate Business Division / Construction, Industrial Machinery & Mobility Division / CDIO / Next Generation Business Development Division / Next Generation Corporate Development Division

CDIO

Next Generation Corporate
Development Division

Global Business Portfolio
Initiatives in Corporate Development
Initiatives in Next Generation Media Business
Capital and strategic alliancewith U.K.-based global
e-sports team Fnatic

Building new business pillars in consumer sector(U.K.)

Toshihiro Fukumura
Chief Operating Officer,
Next Generation Corporate
Development Div.

Marubeni Growth Capital
U.S., Inc.
Silicon Valley(Connecticut, U.S.)(U.S.)Tel Aviv

Japan(Israel)Initiative example in Corporate Development
Initiatives in start-up investment
Investment examples by Marubeni Ventures Inc.

Major Products and Areas

Marubeni Ventures Inc.

Corporate development / Start-up investment / Next generation
media business
Tim Hortons®

Next Generation Corporate Development
Division Strengths• New investment platform with professional investment teams thathave local networks in Southeast Asia and the U.S.
• Access to/incorporation of the world’s most advanced technology
and innovation through start-up investment.
• Know-how and network in the next generation media
business industry• Synergies among divisional initiatives in corporate development,
start-up investment and next generation media business(Development of Tim Hortons coffee chain
in Singapore, Malaysia, and Indonesia)

Marubeni Growth
Capital Asia Pte. Ltd.
(Singapore)

Moxion Power

D-ID(Supplying portableenergy storage) (U.S.)(AI-driven avatar and video
content creation) (Israel)

Growth-oriented Opportunities/Risks
Opportunities

Risks

Expansion of consumption power in Southeast Asia driven by population growthand increase in incomes

Faster than expected emergence of players with innovative technologies andbusiness models

Increase in opportunities to invest in Southeast Asian companies that needlong-term partners to diversify and expand their businesses

Heightened market volatility and sudden changes in investment conditions due toshifts in global circumstances

Propagation of cutting-edge U.S. consumer businesses around the world

Business Strategy
Corporate development

Building a portfolio of new revenue sources for Marubeni through investment in growing companies in high growth consumer
business areas in which Marubeni does not have a strong presence
Promote agile investment through newly established Marubeni Growth Capital Asia in Singapore and Marubeni Growth Capital U.S.
in the U.S. as investment platform comprised of local investment experts
Deepen our understanding of the consumer sector through investments in consumer trends and cutting-edge business models in
the U.S., and deploy this knowledge in Southeast Asia

Start-up investment

Invest in domestic/overseas start-ups with innovative technology/business models
Provide information and insights from investment activities for Marubeni (as an ‘antenna’ for new business development) andcollaborate with division activities
Cooperate with corporate development activities, utilizing information and networks gained in start-up investment activities

Next generation media business

Develop a next generation media business through capital alliances and business partnerships with media companies, focusing on
business fields such as e-sports and video games, which provide content that appeals to next generation consumers

MARUBENI CORPORATION INTEGRATED REPORT 2023

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Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Corporate Data

SECTION

99
101
102
105
106

Financial Data

114
116
117
118
118
119
119

Net Profit of Major Group Companies

Non-Financial Data
State of Major Green Business Initiatives
Major Progress in Greening All Business Domains
Scenario Analysis of Climate Change Risks and Opportunities
in Line with the TCFD Recommendations
Outstanding Balance of Country Exposure
Organization
IR Activities
External Evaluation
Company Profile
Stock Information

98

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

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Business Portfolio

99

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Financial Data
(Billions of yen) (Millions of U.S. dollars)*9

SG-12

GC2015

GC2018

U.S. GAAP

2012.3

GC2021

GC2024

IFRS

2013.32014.32015.32016.32017.32018.32019.32020.32021.32022.32023.32023.3¥ 10,584.4 ¥ 10,509.1

Business Results
Revenue, Total volume of trading transactions*1¥ 7,055.7¥ 7,834.3¥ 7,300.3¥ 7,128.8¥ 7,540.3¥ 7,401.3¥ 6,827.6¥ 6,332.4¥ 8,508.6¥ 9,190.5$68,586

Gross trading profit

541.5

528.2

651.1

707.3

670.1

613.9

677.2

729.7

696.8

675.4

895.3

1,051.3

7,845

Operating profit*2

157.3

122.9

157.5

160.7

104.2

91.6

118.1

173.0

133.9

141.6

284.5

340.8

2,543

Dividend income

27.4

30.1

34.9

35.0

18.6

17.5

21.3

37.3

27.6

16.2

24.4

10.4

77

Share of profits of associates and joint ventures

81.5

87.8

99.4

89.9

31.8

114.7

148.5

85.3

(55.2)

141.3

236.6

286.8

2,140

Profit for the year attributable to owners of the parent (Net profit)

172.1

205.7

210.9

105.6

62.3

155.4

211.3

230.9

(197.5)

223.3

424.3

543.0

4,052

—

—

225.0

231.0

162.0

171.0

230.0

256.0

225.0

243.0

489.0

526.0

3,925

¥ 5,129.9 ¥ 5,965.1

Adjusted net profit*3
Financial Position
Total assets
Net interest-bearing debt
Shareholders’ equity¥ 7,256.1¥ 7,673.1¥ 7,117.7¥ 6,896.7¥ 6,877.1¥ 6,809.1¥ 6,320.0¥ 6,935.7¥ 8,255.6¥ 7,953.6$59,355

1,755.7

1,785.2

2,491.0

2,887.6

2,762.5

2,099.9

1,915.8

1,858.8

1,859.1

1,687.9

1,860.0

1,483.1

11,068852.2

1,131.8

1,383.4

1,518.5

1,317.1

1,683.7

1,771.5

1,977.7

1,515.5

1,814.8

2,242.2

2,877.7

21,476

Cash flows
Net cash provided by operating activities

172.6 ¥

295.7

¥ 291.2¥ 170.9¥ 359.1¥ 324.3¥ 253.4¥ 284.9327.0¥ 397.1¥ 311.9¥ 606.3$4,525

Net cash provided by (used in) investing activities¥(273.7)(210.9)(706.6)(331.4)(174.6)46.5(49.7)

22.5(209.8)(11.6)(79.7)

156.8

1,170

Free cash flow

(101.1)84.9(415.4)(160.5)

184.5

370.8

203.7

307.4

117.2

280.8

232.3

763.1

5,695

Net cash provided by (used in) financing activities

171.9

129.0

196.8

(70.7)(36.3)(258.1)(269.5)(427.4)(93.3)(68.5)(419.6)(766.6)(5,721)

—

—

—

—

—

264.2

324.0

373.2

363.8

369.6

570.5

584.2

4,360

99.13

¥ 118.48¥ 121.52¥ 60.85¥ 35.88¥ 88.08¥ 119.43¥ 130.74¥(116.03)¥ 126.32¥ 242.89¥ 316.11

$2.36

20

24

25

26

21

23

31

34

35

33

62

78

0.58

Core operating cash flow*4¥

Amounts per share (¥, $U.S.)
Basic earnings*5
Cash dividends¥

RatiosROA (%)

3.5

3.7

3.2

1.4

0.8

2.2

3.1

3.4

(3.0)

3.4

5.6

6.7

ROE (%)

21.2

20.7

16.7

7.3

4.4

11.1

14.0

13.9

(13.4)

15.5

23.0

22.4

Net debt-equity (DE) ratio*6 (Times)

2.06

1.58

1.80

1.90

2.10

1.25

1.08

0.94

1.23

0.93

0.83

0.52

—

—

—

—

—

—

—

103.8

79.0

132.8

206.5

264.6

Total shareholder return*7 (%)*1. Reflecting “Total volume of trading transactions” until FYE 3/2013 and “Revenue” from FYE 3/2014 onward. “Total volume of trading transactions” includes alltransactions involving the Company and its consolidated subsidiaries regardless of transaction type.
*2. Operating profit = Gross trading profit + SGA expenses + Provision for doubtful accounts. “Operating profit” is presented in accordance with Japanese accounting
practices for investors’ convenience and is not required by IFRS.
*3. Adjusted net profit: Net profit excluding one-time items, shown in an approximate figure.
*4. Core operating cash flow: Operating cash flow excluding net increase/decrease in working capital and others*5. “Basic earnings per share attributable to owners of the parent” is based on “Profit attributable to owners of the parent” excluding the amount not attributable toordinary shareholders.

*6. Effective from FYE 3/2023, the denominator in the formula for calculating the net DE ratio has been changed from “total equity” to “equity attributable to ownersof the parent.” The net DE ratio for past years has been adjusted accordingly.
*7. Total shareholder return for fiscal year N = (Share price at the end of fiscal year N + cumulative amount of dividends per share of up to fiscal year N from four fiscal
years prior to FYE 3/2022)/share price at the end of the five fiscal years prior to FYE 3/2022 (fiscal year N = any fiscal year between FYE 3/2018 - FYE 3/2022)*8. Due to the early application of IAS 12, figures for FYE 3/2021 have been adjusted retroactively.
*9. U.S. dollar amounts above and elsewhere in this report are converted from yen, for the convenience of readers only, at ¥134 to U.S.$1, the exchange rate
prevailing on March 31, 2023.
For detailed information, please refer to the Consolidated Financial Statements with Independent Auditors’ Report for the relevant fiscal year.
https://www.marubeni.com/en/ir/reports/security_reports/

Value Creation at Marubeni

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Data by Operating Segment

Based on FYE 3/2023 organization(Billions of yen)

Business Division

Consumer
Products Group

Materials Group

Energy &Infrastructure
Solution Group

Transportation &Industrial Machinery,
Financial BusinessGroup
CDIO (Chief Digital
Innovation Officer)

Net Profit

Segment

Adjusted Net Profit*2

Number of Employees(As of March 31, 2023)

Total Assets

2022.32023.32022.32023.32022.32023.3

Consolidated

Non-Consolidated

Lifestyle Div.

5.5

4.5

7.0

8.0

155.4

183.7

5,217

204

ICT Business & Logistics Div.

9.2

9.5

8.0

10.0

351.2

372.0

8,218

146

Food Div.- I

14.5

11.6

12.0

12.0

403.3

426.0

2,324

225

Food Div.- II

46.4

76.9

47.0

25.0

1,344.5

560.4

4,279

155

Agri Business Div.

59.8

42.7

66.0

39.0

988.6

1,099.3

6,852

52

Forest Products Div.

7.6

(9.4)

8.0

5.0

315.5

323.2

3,099

176

Chemicals Div.

17.2

14.3

17.0

14.0

313.1

322.9

1,038

247

Metals & Mineral Resources Div.

190.7

199.4

188.0

201.0

1,070.1

1,209.5452

214

Energy Div.

37.7

38.3

41.0

46.0

718.2

555.0

938

239

Power Div.

(27.7)

40.3

22.0

54.0

1,122.2

1,179.6

1,760

336

Infrastructure Project Div.

7.3

9.0

7.0

9.0

237.8

282.2

631

214

Aerospace & Ship Div.

26.6

28.2

28.0

31.0

296.0

334.6

418

120

Finance, Leasing & Real Estate Business Div.

7.0

43.8

25.0

40.0

494.8

550.4

1,182

236

Construction, Industrial Machinery & Mobility Div.

22.5

23.8

19.0

23.0

315.9

379.8

6,727

193

Next Generation Business Development Div.

(1.5)

(2.8)

(2.0)

(1.0)

16.7

28.1

265

63

Next Generation Corporate Development Div.

0.9

(2.0)

1.0

(2.0)

11.1

13.4

24

14

Other

0.6

15.0

(4.0)

9.0

101.1

133.6

2,571

1,506

424.3

543.0

489.0

526.0

8,255.6

7,953.6

45,995

4,340

Resources*1

197.5

190.4

197.0

199.0

Non-resources*1

226.9

342.4

296.0

320.0

(0.0)

10.2

(4.0)

7.0

Consolidated total

Other*

1*1. Classification by business field is as follows: Resources: Total of Energy Div. and Metals & Mineral Resources Div. excluding Steel Products Dept.; Other: Total of Next Generation Business Development Div., Next Generation Corporate Development Div., and Other; Non-resources: All other than above.
*2. Adjusted net profit: net profit excluding one-time items, shown in an approximate figure. The total of the various operating segments and the overall total may not match due to rounding.

MARUBENI CORPORATION INTEGRATED REPORT 2023

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Business Portfolio

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Non-Financial Data
Environmental Data

Social Data

Greenhouse Gas Emissions * *1,Including non-energy-related GHG emissions

Total

Components(Thousand metric tons CO2e)2(Excluding non-energy-related GHG emissions)
Scope 12021.32022.32023.3

1,080

1,239

1,222

2021.32022.32023.3

No. of employees (Consolidated)*3

45,47046,10045,995

No. of employees (Non-Consolidated)*4

4,389

4,379

4,340

Of which, Male

3,203

3,179

3,115

(965)

(1,119)(1,072)

Including non-energy-related GHG emissions

798

1,016

1,000

Of which, Female

1,186

1,200

1,225

(Excluding non-energy-related GHG emissions)

(683)

(897)

(850)

Average service years*5

17.5

17.6

17.6

282

223

222

Ratio of females in career-track positions (%)*5

10.8

12.0

13.2

No. of employees in management positions*5

2,304

2,433

2,466

Ratio of females in management positions (%)*5

6.4

7.5

8.2

Directors, Audit & Supervisory Board Members*5

18

15

15

Ratio of female officers (%)*5

5.56

6.67

13.33

Employment rate of people with disabilities (%)*6

2.58

2.60

2.57

Average overtime hours per month*5

20.0

20.3

18.4

Use of annual paid leave (%)*5

41.0

50.0

55.0

Scope 2

Scope 1 Greenhouse Gas Emissions(Components of non-energy-related GHG emissions) *1, *2(Thousand metric tons CO2e)2021.32022.32023.3

115

120

150

Carbon dioxide (CO2)

5

10

32

Methane (CH4)

72

72

75

No. of employees who took maternity leave*5

58

70

76

Dinitrogen monoxide (N2O)

37

38

43

No. of employees who took childcare leave*5

100

111

129

Components Hydrofluorocarbons (HFCs)

1

0

1

Total amount

Perfluorocarbons (PFCs)

0

0

0

Sulphur hexafluoride (SF6)

0

0

0

Nitrogen trifluoride (NF3)

0

0

0

Scope 3 Category 15 (Investment)*2(Million metric tons CO2)

2021.32022.32023.3

approx. 25

approx. 25

approx. 22

Power generation

approx. 21

approx. 21

approx. 19

Components Resource projects

approx. 3

approx. 2

approx. 2

Others businesses

approx. 1

approx. 1

approx. 1

Total

Other environmental data
Water withdrawal anddischarge data

2021.32022.32023.3

Water withdrawal (Thousand m3)*1

298,340

308,498

272,325

Water discharge (Thousand m3)*1

285,693

296,047

260,902

119

175

207

13,771

17,515

16,992

Waste generated (Thousand metric tons)*1
Energy consumption (Thousand GJ)*1*1. Total for Marubeni Corporation and consolidated subsidiaries.
*2. The total of each breakdown and the overall total may not match due to rounding.

Of which, Male
Return rate (following childcare leave) (%)*5

48

54

59

98.9

97.3

98.0

No. of hires*5

146

162

157

No. of new graduate recruitment*5

116

124

123

Of which, Male

79

74

65

Of which, Female

37

50

58

20.5

23.5

21.7

Number of participants trained per year

25,18832,53543,320Total number of training days per year

23,39324,34027,029Total number of training hours per year

170,000

177,000

196,000

Annual training hours (days) per employee

39 (5.3)

41 (5.6)

46 (6.3)

Ratio of mid-career recruitment in hires (%)*5
Employee development data*5*3. Consolidated employee figure as of March 31.
*4. Total figures include the number of Marubeni employees assigned to other companies and exclude secondees to Marubeni Corporation from other companies (as of March 31).
*5. Figures for Marubeni Corporation.
*6. The figures shown combined total for Marubeni Corporation and the certified special-purpose subsidiary, Marubeni Office Support
Corporation (as of March 1).

Detailed information, including notes on the environmental
and social data, is available on the sustainability website.
Of the indicators disclosed on the website, those marked
with asterisks have received third-party assurance fromKPMG AZSA Sustainability Co., Ltd. For detailed
information, please refer to the website.

Environmental Data
https://marubeni.disclosure.site/en/themes/19/
Social Data
https://marubeni.disclosure.site/en/themes/28/

MARUBENI CORPORATION INTEGRATED REPORT 2023

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

State of Major Green Business Initiatives*1
We are promoting Green Business initiatives in Horizon 1 & 2 and Horizon 3 defined in GC2024 Mid-Term Management Strategy
Horizon 1 & 2
Horizon 3

Expanding Green Business based on the current business, which is already strong and profitable
Creating new Green Business through cross-sectional approaches and utilization of business connections

Horizon 1 & 2

Horizon 3

Renewable energy

New energy

Develop offshore wind farm projects (U.K., Japan), domestic biomass and micro-scalehydro-power generation projects and others

Pursuit of development and commercialization of projects related to hydrogen,fuel ammonia, etc. (Australia, Middle East, North America and other regions)

Commencement of full-scale commercial operation for offshore wind farm project at Akita Portand Noshiro Port in Akita Prefecture

Development of green hydrogen-related projects (U.K., the Middle East andAustralia, etc.)

Completion of Al Kharsaah Solar PV IPP project (Qatar)Commercialize hydrogen refueling station for truck fleet (U.S.)

Rabigh Solar PV IPP project (Saudi Arabia) (currently under construction)

Production and sales of SAF in Fulcrum BioEnergy, Inc., commencement of
production (U.S.)

Development of a floating offshore wind farm, ScotWind Project (Scotland)
Development of a wood-based biomass power plant in Ishikari City, Hokkaido
Start of service for “SOLACLE”, a trading platform fordomestic solar power plants

Commencement of production and sales of biomethane derived from dairy
manure (U.S.)
Joint study for methanation project (Peru)

Strengthening retail power sales business ofSmartestEnergy Limited (U.K.) and Marubeni Power
Retail Corporation
Expanding supply-demand adjustment functions including battery
storage, strengthening marketing capability such as renewableenergy aggregation, enhancement of trading capability for
Renewable Energy Certificates

Offshore wind farm project at Akita Portand Noshiro Port (photo courtesy of Akita
Offshore Wind Corporation)

Hydrogen and fuel ammonia supply chain(Hydrogen liquefaction and loading
facilities (photo courtesy of HEA))

Target ratio of power generated by renewable energy sources
Target to expand the ratio of power generated by renewable energy source (in Group’s own net power supply to approx. 20% by 2023)
Performance as of March 31, 2023: Approx. 21% (including seabed leasing rights for the development of the ScotWind project), approx. 16% (excluding the
ScotWind project)

Avoided emissions from renewable energy generation*2: approx. 1.12 million t-CO2(The amount of power generated (net power output) from major solar, wind, geothermal, hydro, wind farm projects as of March 31, 2023, using the following formula:
Installed capacity × 24 hours × 365 days × capacity factor (%) × the average emission factor of the country or region of location available × equity share (%))

*1. Figures and other data are the mostrecent available as of March 31, 2023.
*2. The Group is exploring the disclosureof quantitative indicators of contribution
to a low-carbon or decarbonizedsociety, such as avoided emissions,in view of the most recent guidance
and other factors.

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

State of Major Green Business Initiatives

Horizon 1 & 2

Horizon 3

Water infrastructure

Decarbonization solutions

Strengthen and promote the water projects, such as seawater desalination BOT/BOO projects
in the Middle East and South America, and water/wastewater concession businesses (Europe,
South America and Southeast Asia)

Development of CCS and CCUS projects (U.S. and Australia)

Conclusion of a water purchase agreement, achievement offinancial close and start construction for a desalination andwater transmission project for Corporación Nacional del Cobrede Chile (Chile)

Concluded a joint venture agreement on the establishment of a company to enter
the district cooling business (Saudi Arabia)

Stable water supply and operational improvement of existingwater/wastewater concession businesses (AGS, Aguas Nuevas,
Aguas Decima, Maynilad, etc.)
Existing water projects (BOT/BOO: 3, concession: 4, total
service population: 17 million)

Signed contracts for a car-sharing PoC project on EV using electricity derived
from reuse solar panels in Gunma Prefecture

Development of waste-to-fuel and waste-to-energy projects (Middle East andSoutheast Asia)

Formed strategic capital and business alliance with folofly Inc., which develops
and sells commercial EVs

Water and wastewater services

Conducted demonstration flight of flying car
Investing in and establishing strategic
partnership with LineVision, Inc., a U.S.
provider of monitoring and analysis solutions
for transmission lines
Promotion of smart city business

Copper, aluminum*

Carbon capture and utilization

The Minera Centinela copper mine expansion (Chile)
All three copper mines in which Marubeni participates have completed 100% conversion to
renewable energy sources and have been awarded the Copper Mark. Marubeni became apartner of the Copper Mark
Aluminerie Alouette, the aluminium smelter has been awarded the ASI Chain of
Custody (Canada)

Decentralized power, battery storage, and supply-demand adjustments
Global development of decentralized power generation business (solar PV generation
project with power purchase agreement to commercial and industrial customers in Mexico,
Thailand and Vietnam)

Building a stronger and more responsible aluminium
supply chains through the sales of carbon neutral andlow-carbon aluminum ingot

Development of domestic grid-scale battery business

Strengthening and expanding copper andaluminium trading

Investment in Cirba Solutions, LLC participating in thelithium-ion battery recycling industry (North America)

Expanding renewable energy aggregation business andutilization of the FIP scheme

Development of next generation energy storage business
Copper mining business in Chile* Contributing to decarbonization by supplying critical minerals used for EVs and other clean technologies.

Decentralized power generation business(Mexico – Rooftop solar PV system)Value Creation at Marubeni

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

State of Major Green Business Initiatives

Horizon 1 & 2

Horizon 3

Forestry

Recycling of materials and resources

Improve growth potential of pulp wood in MHP, extend afforestation area, expand
the volume of carbon stocks through maintenance of managed forest (Indonesia)

Additional investment in Circ, Inc. with textile product recycling technology (U.S.)

Promote environmentally conscious afforestation services in WA Plantation
Resources Pty., Ltd. (Australia)

Establishment of joint venture company (PubteX Co., Ltd.) to reform the supply chain of theJapanese publishing industry

Developing a reforestation carbon credit
program (Philippines)

Providing paper bags through closed recycling of used
corrugated containers

Promotion of appropriate reuse and recycling business of used solar panels

Joint afforestation project for wood-derived
biomass materials (fast-growing tree planting) in
Shunan city, Yamaguchi Prefecture
Forest plantation businessTextile products recycling business

Agri-inputs*

Eco-friendly food products

Growing Helena Agri-Enterprises, LLC business through environmental impact mitigation(reduction of fertilizer and subsequent nitrogen leaching, etc.) and improvement of agricultural
productivity, while providing solutions with proprietary products and services. Considering andevaluating the potential of agri-inputs products which contribute to the expansion of regenerative
practices in agriculture and carbon sequestration (e.g., biochar) (U.S.)

Initiatives related to land-based aquaculture in Japan and overseas
Investment in food tech incubator KitchenTown, commencement to support
startup companies solving sustainability issues such as alternative proteins
Collaboration with SAS Ÿnsect, the world's largest insect protein manufacturer
and distributor, to enter the Japanese market
Japan's first creation of J-credit throughconverting the measure to manage
livestock excrement in the livestock industry

Agri-inputs business* Contributing to climate change measures and conservation of bio-diversity by supporting efficient land use.

Land-based recirculating aquaculture
systems for salmon farming business

MARUBENI CORPORATION INTEGRATED REPORT 2023

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Business Portfolio

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Major Progress in Greening All Business Domains
In all areas where action is essential to live in harmony with nature, the Marubeni Group advances greening, aiming to contribute to this goal through our business.

Subjects

Directions

Major Examples
Transportation efficiency, supply chain optimization
GHG reduction in manufacturing business

Decarbonization

Promoting efforts to put the “Marubeni Long-Term Vision on
Climate Change” into practice:
1 Achieve net-zero GHG emissions by 2050 (Action Plans towards 2030)
2 Contribute to low-carbon/decarbonization through our businesses

Advancing greening in all five processes*1 that promote the effective
use of resources

Transition toa Circular
EconomyShare

Maintain/Prolong

Reuse/Redistribute

Development of carbon neutral products and services
Initiatives for gas-fired power generation projects focusing on
the needs in the low-carbon transition, acceleration of
decarbonization process
Utilization of EV, renewable energy

Promote initiatives focusing on “Sharing” (EV battery sharing service
in the logistics industry, rental and leasing of refrigerated trailers,commercial vehicle fleet management, etc.)
Strengthen maintenance-related business
Waste reduction and reuse

Refurbish/
Remanufacture

RecycleEnergy conservation and reduction of environmental
impact in refurbish/remanufacture-related business
Strengthen de-plasticization-related initiatives

Advancing greening in all six business areas*2 toward“nature positive” outcomes

Living inHarmony with

Recycling of pulp and forest residues

Improving agricultural
productivity while avoiding soil
degradation and water pollution

Sustainable andmulti-purpose use offorest resources

Sustainable use ofmarine and coastal areas

Sustainable use of
fresh water

Enhancement ofsustainability of cities

Sustainable energy use
and infrastructuredevelopment

NatureFormulated procurement policy for sustainable coffee,
strengthen and expand handling of sustainable coffee
Reduction of environmental impact in manufacturing business(water-saving, water recycling, waste reduction, recycling)
Obtaining environmental certifications for real estatedevelopment business and for properties owned and managed
Improve efficiency of construction equipment withdigital technologies*1. Five processes in material flows in a circular economy (Source: Ellen MacArthur Foundation)*2. Six areas recommended corporate initiatives toward “nature positive” outcomes in the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).

105MARUBENI CORPORATION INTEGRATED REPORT 2023

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Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Scenario Analysis of Climate Change Risks and Opportunities in Line
with the TCFD Recommendations
Business selection for scenario analysis

Results of scenario analysis

Businesses in the upper-right quadrant of the matrix shown below

The chart below summarizes the results of the scenario analysis for each business selected.

are selected for the scenario analysis.
Horizontal axis

Business domains with high financial impact due

The scenarios and business environment overviews represent the understanding of the Marubeni Group based on major scenarios asdeveloped by the IEA and other international organizations, but do not provide an outlook for the Group.

to climate change
Vertical axis

Degree of impact on Marubeni Group (scale ofassets/earnings, etc.)

How to read the charts

Degree of impact on Marubeni Group

Baseline scenarios
High-impact

Transition scenarios

Expected changes in conditions for the selected businesses

Expected changes in conditions for the selected businesses

based on demand projections under baseline scenarios

based on demand projections under transition scenarios

The data show demand projections for the selected business under each scenario as conditions evolve (all data are global,

businesses

unless otherwise noted).

Business environment
overview

Example: Coal-fired power generation (graph represents a sample)
Baseline scenarios

Transition scenarios(TWh)

Impact of climate change on industry

Businesses selected for scenario analysis
using process outlined above
Power generation

Name of selected business

12,000
9,000
6,000
3,000

0
2020* 2030

Responses to futurebusiness risks/opportunities
Note: Unless otherwise stated, theanalysis target is up to 2030.

2040

2050 (CY)This section outlines Group policies and initiatives for the businesses, based on the business environment overview fromthe scenarios.

Impact on performance
up to 2030

Positive
NeutralShip

NegativeAgri-inputs (North America)

This section explains the assessment in more detail.

indicate the overall assessment.

Aircraft leasing (Aircastle)

Forestry

2020* 2030

One of seven possible arrows is used toAlternative energy
Iron ore mine and copper mine investment

2050

The impact on the performance of the selected businesses up to 2030 is summarized graphically in overall terms.

Energy resource investment (oil/gas/LNG)
Coking coal mine investment

2040

Baseline scenarios:
Transition scenarios:
IEA RTS (+2.7°C)
IEA B2DS (+1.75°C)
IEA STEPS (+2.7°C)
IEA SDS (+1.65°C)
IPCC RCP8.5 (+4.3°C)
IPCC RCP2.6 (+1.6°C)
IPCC RCP6.0 (+2.8°C)
IEA NZE (+1.5°C)
IPCC RCP4.5 (+2.4°C)
IPCC RCP1.9 (+1.5°C)
Figures in parentheses correspond to the projected temperature riseby 2100 under each scenario.
Note: Data for IEA RTS referenced from 2014 rather than 2020.
Note: Data for IEA SDS referenced from 2019 rather than 2020.
Note: Data for 2020 are scenario-based projections rather than actual figures.

(High)

(Med)

(Low)

(Low)

(Med)

(High)

This section shows the net profit/loss for the relevant period attributable to owners of the parent for the selected

Financial information

businesses of the relevant segment (division) and the financial exposure* or segment assets.
* Exposure includes investments, loan receivables, tangible fixed assets, and guarantees.

106Value Creation at Marubeni

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations
Baseline scenarios

Transition scenarios

Global electric power demand is expected to increase.
Coal-fired power will stay flat or fall if fossil fuel dependence continues, while demand
will grow for gas-fired power and renewables.

Global electric power demand is expected to increase.
Coal-fired power will fall significantly if the world progresses toward becoming a low-carbon or decarbonized society. Gas-fired
power is expected to stay flat until 2030, before starting to fall. Demand for renewables is expected to grow significantly.
The costs of using fossil fuels will rise if carbon pricing is introduced or enforced more rigorously.

Coal-fired power generation

Gas-fired power generation

Baseline scenarios

Business environment
overview

Transition scenarios

Baseline scenarios

Renewable energy power generation
Transition scenarios

(TWh)

(TWh)

12,00024,00080,0009,000

40,0008,000

Power generation business

3,000
0

Gas-fired power

Renewable energy

Financial information

2020* 2030

2040

2050 (CY)02020* 2030

2040

2050

2020* 2030

2040

2050 (CY)

2020* 2030

2040

2050

2020* 2030

2040

2050 (CY)

We will respond to rising global electric power demand by expanding the Group’s power generation business, focusing especially on the renewables sector.
We will expand the renewable power generation business (ratio of renewable energy sources in net generation capacity as of March 31, 2023: approx. 21% including seabed leasing rights for the ScotWind project;approx. 16% excluding the project). We will promote expanded use of renewable energy in the power wholesale and retail business and in the de-centralized power generation business to help contribute to a
low-carbon society.
We will promote energy management businesses including decentralized power generation, battery storage, and power supply-demand adjustments, and expand decarbonization solutions through smart city/community-based multi-utility service businesses.
Marubeni will no longer enter into any new coal-fired power generation business. By 2025, we also aim to cut our FYE 3/2019 coal-fired power net generation capacity of approx. 3GW in half, with further abatement toapprox.1.3GW by 2030, and aim for zero by 2050.
We will continue to develop gas-fired power generation businesses in response to the needs of society transitioning to a low-carbon society. We will also seek to mitigate CO2 emissions from thermal power
generation utilizing new technologies based on the co-combustion of hydrogen and ammonia.
The analysis identifies the risk of higher costs of CO2 emissions due to the adoption of carbon taxes or emissions trading schemes. The risk of regulatory change is already hedged in the long-term power purchaseagreements that govern most of our power generation business.
Coal-fired power

Impact on performance
up to 2030

20,00002020* 2030 2040 2050
* Refer to chart legend below.

Note: Unless otherwise stated, theanalysis target is up to 2030.

Transition scenarios

60,00016,0006,000

Responses to futurebusiness risks/opportunities

Baseline scenarios(TWh)

Negative (Low)

The impact of lower demand on existing businesses is limited by the long-term power purchase agreements governing most of our power generation business.
However, earnings from coal-fired power generating businesses will diminish as assets are retired.

Positive (Low)

New project development should have a positive impact on earnings since electric power demand is projected to increase under the baseline scenarios and some new
demand is projected over the short and medium term under the transition scenarios.

Positive (High)New project development should have a significantly positive impact on earnings since power demand is projected to rise under the baseline scenarios and expand rapidly
under the transition scenarios.

Power Division
Relevant segment net profit (FYE 3/2023): approx. ¥40.3 billion (power IPP business reported a net profit* of approx. ¥42.2 billion)
Relevant segment assets (as of March 31, 2023): approx. ¥1,179.6 billion* Total profits of consolidated subsidiaries and share of associates and joint ventures of our IPP business.
Reference: Capacity of power generation assets was approx. 2.4GW for coal-fired power generation, approx. 1.9GW for renewable energy power generation, and approx. 7.3GW for gas-fired power generation, and others (as of March 31, 2023)

Baseline scenarios:

IEA RTS (+2.7˚C)
IPCC RCP6.0 (+2.8˚C)

IEA STEPS (+2.7˚C)
IPCC RCP4.5 (+2.4˚C)

IPCC RCP8.5 (+4.3˚C)Transition scenarios (below 2˚C):(1.5˚C):IEA B2DS (+1.75˚C)
IEA NZE (+1.5˚C)

IEA SDS (+1.65˚C)
IPCC RCP2.6 (+1.6˚C)
IPCC RCP1.9 (+1.5˚C)Figures in parentheses correspond to the projected temperature rise by 2100 under each scenario. Note: Data for IEA RTS referenced from 2014 rather than 2020. Note: Data for IEA SDS referenced from 2019 rather than 2020. Note: Data for 2020 are scenario-based projections rather than actual figures.

Value Creation at Marubeni

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Business Portfolio

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations

Energy resource investment business (oil/gas/LNG) and alternative energy businessBaseline scenarios

Oil demand

The share of oil and natural gas in total primary energy is expected to
be on the rise.
Oil demand and production are expected to increase until 2030, thenflatten out, with demand and supply in equilibrium.
Gas demand and production are expected to increase until 2040,
with supplies of gas generally tightening over time.
Demand for alternative energy will remain on a gradual uptrend.

Business environment
overview

Transition scenarios

Baseline scenarios(Mtoe)(Mtoe)

6,000

6,000

4,000

4,000

2,000

2,000

0

Transition scenarios

Transition scenarios

0

2020* 2030

The share of oil and natural gas in total primary energy is expected to
be on a declining trend.
Oil demand and production are expected to decrease slightly until
2030 and then decline. The supply and demand balance will see aslight shift to oversupply.
Demand for gas will remain almost flat until 2030 and then decline.
Production of gas will decrease. Supply and demand will be in
equilibrium or shift slightly to undersupply
Demand for alternative energy will gradually increase until 2030, andthen rise steadily after 2030.

Natural gas demand

Baseline scenarios

2040

2050

2020* 2030

2040

2050 (CY)

Hydrogen demand

2020* 2030

2040

2050

2020* 2030

2040

2050 (CY)

Bioenergy demand

Baseline scenarios

Transition scenarios

Baseline scenarios(Mtoe)(Mtoe)

6,000

6,000

4,000

4,000

2,000

2,000

0

Transition scenarios

0

2020* 2030

2040

2050

2020* 2030

2040

2050 (CY)

2020* 2030

2040

2050

2020* 2030

2040

2050 (CY)* Refer to chart legend below.

Responses to futurebusiness risks/opportunities
Note: Unless otherwise stated, theanalysis target is up to 2030.

We will consider an appropriate and timely review of our oil upstream portfolio by comprehensively taking into account a variety of factors, including future supply and demand trends and progress in climate change
countermeasures.
With natural gas and LNG interests, we will assess trends in transition needs, particularly in Asia, and seek to increase customers' value by increasing value throughout the value chain.
With new energy, we will actively develop, secure, produce, and handle new energy resources, such as hydrogen and ammonia, which will be needed in large quantities in the future, aiming at improving
profitability and taking steps to play an appropriate role in society.
In the year ending March 2024, we established the New Energy Business Development Department to take over centralized control of alternative energy-related projects from the Energy, Power, and Infrastructure
Project divisions of the Energy & Infrastructure Solution Group. The new department will leverage the business foundation of the other divisions to build on our strengths in existing fields, assembling a supply chain
from manufacture to utilization in the alternative energy domain to contribute to decarbonization.
In addition, we will actively consider and promote the production and sales of other alternative energies, such as biofuels and bio-methane and synthetic fuels, along with the development of the CCUS* business.
* Carbon dioxide Capture, Utilization and Storage

Oil

Impact on performance
up to 2030

NeutralNatural gas/LNG
Alternative energy

Financial information

Baseline scenarios:

IEA RTS (+2.7˚C)
IPCC RCP6.0 (+2.8˚C)

The impact of decreasing demand on the Group's performance is expected to be limited until 2030, even under the transition scenarios.

Positive (Low)

As demand is expected to remain almost unchanged or even slightly increase until 2030, the impact on our business affected by the external environment will be neutral or slightly positive.

Positive (Med)We plan to engage more deeply in this sector in anticipation of the expansion of the market over the medium and long term. The impact on earnings is
expected to be fairly positive, depending on technological progress.

Relevant segment net profit including energy resource investment business (oil/gas/LNG) (FYE 3/2023): approx. ¥38.3 billion for Energy Division (including net profits of approx. ¥8.1 billion for LNG projects and approx.
¥8.3 billion for oil/gas exploration and production business)
Exposure of energy resource investment business (oil/gas/LNG) (as of March 31, 2023): approx. ¥70.0 billion for oil/gas interests and approx. ¥50.0 billion for LNG interests
Establishment of New Energy Business Development Department in FYE 3/2024
Our alternative energy businesses are operated by multiple segments, including New Energy Business Development Department, Energy Division, Infrastructure Project Division, Power Division, Forest Products Division, andChemicals Division.
IEA STEPS (+2.7˚C)
IPCC RCP4.5 (+2.4˚C)

IPCC RCP8.5 (+4.3˚C)Transition scenarios (below 2˚C):(1.5˚C):IEA B2DS (+1.75˚C)
IEA NZE (+1.5˚C)

IEA SDS (+1.65˚C)
IPCC RCP2.6 (+1.6˚C)
IPCC RCP1.9 (+1.5˚C)Figures in parentheses correspond to the projected temperature rise by 2100 under each scenario. Note: Data for IEA RTS referenced from 2014 rather than 2020. Note: Data for IEA SDS referenced from 2019 rather than 2020. Note: Data for 2020 are scenario-based projections rather than actual figures.

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations

Coking coal mine investment businessBaseline scenarios

Coal demand in steel industry

Steel production is expected to increase as populations and economies grow.
Demand for coking coal will increase slightly to 2030, before growing further.

Baseline scenarios

Transition scenarios(Mtoe)

1,000

Transition scenarios

Business environment overview

Steel production is expected to increase more slowly than in the baseline scenarios, due toefforts such as extending the life of buildings and reducing the weight of vehicles.
Demand for coking coal will decline slightly to 2030, before falling faster.

500
02020* 2030

Responses to future business risks/
opportunities
Note: Unless otherwise stated, the analysis target is up to 2030.

2040

2050

2020* 2030

2040

2050 (CY) * Refer to chart legend below.

We plan to maintain and continue existing businesses as we head towards 2030, based on projected growth in steel demand and progress in new technological development. In the long term, we will
flexibly consider our portfolio, based on progress on decarbonization by the steel industry.

Impact on performance up to 2030

NeutralThe impact of decreasing demand on the Group's performance is expected to be limited until 2030, even under the transition scenarios.

Metals & Mineral Resources Division
Relevant segment net profit (FYE 3/2023): approx. ¥199.4 billion (including net profit of approx. ¥98.8 billion by Marubeni Resources Development*)

Financial information

Exposure (as of March 31, 2023): approx. ¥90.0 billion for coking coal mine investment business* Australia-based Group company managing investments in steelmaking material business

Iron ore mine and copper mine investment businessBaseline scenarios
Demand for steel is expected to be firm as populations and economies grow.
Demand for copper is expected to increase due to population and economic
growth, as well as boosts from progress on decarbonization and electrification.

Business environment overview

Transition scenarios
Demand for steel is expected to be firm as populations and economies grow.
Demand for copper is expected to increase significantly due to populationand economic growth, as well as boosts from progress on decarbonizationand electrification.

Responses to future business risks/
opportunities
Note: Unless otherwise stated, the analysis target is up to 2030.

Baseline scenarios

Transition scenarios

Baseline scenarios

(Mt)

(%)

2,400

120

2,000

60

1,600

Coppe

Transition scenarios
Steel

Coppe

Iron ore
Copper0

2020* 2030 2040 2050
* Refer to chart legend below.

2020* 2030

2040

2050 (CY)

2020*

2050

2020*

Positive (Low)

IEA RTS (+2.7˚C)
IPCC RCP6.0 (+2.8˚C)2050 (CY)

Positive (Med)Led by the iron ore mining business in Australia, we expect a positive impact on earnings due to rising demand.
Led by the copper mining business in Chile, we expect a positive impact on earnings due to rising demand. Further boosts to earnings are anticipated under thetransition scenarios due to increased demand for copper from electrification trends.

Metals & Mineral Resources Division
Relevant segment net profit (FYE 3/2023): approx. ¥199.4 billion (including net profits of approx. ¥28.5 billion by the Roy Hill Iron Ore Project and approx. ¥18.5 billion by Marubeni LP Holding*)
Exposure (as of March 31, 2023): approx. ¥180.0 billion for iron ore mine investment business and approx. ¥310.0 billion for copper mine investment business* Chile-based Group company managing investments in copper businessBaseline scenarios:

Steel

We plan to contribute to stable supplies of iron ore and copper to cater to growing demand through our iron ore mining business in Australia and copper mining business in Chile.
We have completed the conversion to renewable energy sources in our Chilean mining operations and are involved in other initiatives to reduce their environmental impact such as electrification of heavymachinery and processing of seawater for use in operations.
We will pursue the possibility of the replenishment and future expansion of ore reserves to respond to the increase in demand over the medium to long term and to strengthen cost competitiveness.

Impact on performance up to 2030

Financial information

Steel/copper demand related to energy technologies suchas power infrastructure (rate of change)

Steel production

IEA STEPS (+2.7˚C)
IPCC RCP4.5 (+2.4˚C)

IPCC RCP8.5 (+4.3˚C)Transition scenarios (below 2˚C):(1.5˚C):IEA B2DS (+1.75˚C)
IEA NZE (+1.5˚C)

IEA SDS (+1.65˚C)
IPCC RCP2.6 (+1.6˚C)
IPCC RCP1.9 (+1.5˚C)Figures in parentheses correspond to the projected temperature rise by 2100 under each scenario. Note: Data for IEA RTS referenced from 2014 rather than 2020. Note: Data for IEA SDS referenced from 2019 rather than 2020. Note: Data for 2020 are scenario-based projections rather than actual figures.

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations
Baseline scenarios

Distance transported by air

Aircraft leasing business (Aircastle)

Travel by air is expected to continue to grow, especially in the Asia-Pacific region and North America.

Transition scenarios
Business environment overview

Baseline scenarios

Transition scenarios(Billion pkm)

24,000Travel by air is expected to continue to grow, especially in the Asia-Pacific region and North America.
A certain decrease in air travel by passengers is expected due to changes in people's behavior.
Use of biofuels and synthetic fuels is expected to increase within the aviation sector.

18,00012,0006,000
02020* 2030

Responses to future business risks/
opportunities
Note: Unless otherwise stated, the analysis target is up to 2030.

2040

2050

2020* 2030

2040

2050 (CY) * Refer to chart legend below.

Based on projected growth in passenger air travel in the medium and long term, our business management policy focuses on the new model narrow-body aircraft which have a lower environmental impact.
Our aircraft leasing business could see a fall in profitability due to lower demand for leased aircraft, if airlines of our customers are negatively affected under any of the transition scenarios.
Since the airline industry is susceptible to the impact of carbon pricing, we will monitor related trends closely.

Impact on performance up to 2030

Positive (Med)With demand expected to grow even under the transition scenarios, we expect a positive impact on earnings as we seek to mitigate environmental impact.

Finance, Leasing & Real Estate Business Division
Relevant segment net profit (FYE 3/2023): approx. ¥43.8 billion (including net loss of approx. ¥1.0 billion by Aircastle)

Financial information

Exposure (as of March 31, 2023): approx. ¥141.7 billion for Aircastle (carrying amount of equity interests)

Baseline scenarios

Distance transported by vessel

Demand for freight (ton-km) is expected to increase.
Demand for bulk carriers is projected to grow slightly. Demand for LNG carriers will peak in 2040
and fall gradually thereafter.

Ship businessBusiness environment overview

Responses to future business risks/
opportunities
Note: Unless otherwise stated, the analysis target is up to 2030.

Baseline scenarios:

IEA RTS (+2.7˚C)
IPCC RCP6.0 (+2.8˚C)

300,000

Transition scenarios
Demand for freight (ton-km) is expected to increase.
Demand for bulk carriers is projected to be flat. Demand for LNG carriers will tend to decline.
Carbon pricing will push up the costs of using fossil fuels.
Conversion to alternative fuels such as ammonia, biofuels, and hydrogen will be gradually
implemented and these are expected to become the main fuels in the longer term.

200,000
100,000
0

2020*

2030

2040

2050

(CY)

* Refer to chart legend below.

We will target higher earnings in this field, with growth in freight (ton-km).
In accordance with the IMO (International Maritime Organization) GHG emission reduction target and the strategy with regard to fuel efficiency performance regulations, we will improve fuel efficiency byimplementing high-efficiency vessels, improving the efficiency of vessel operation, and introducing energy-saving technology for existing vessels.
We will support ongoing programs to develop and introduce next-generation vessels powered by carbon-recycled, bio-methane, hydrogen or ammonia fuels.
Besides monitoring carbon pricing trends closely, we aim to create new businesses in the ship sector relating to green technologies, based on collaboration within the Group.

Impact on performance up to 2030

Financial information

Transition scenarios(Billion tkm)

Positive (Med)With demand expected to grow even under the transition scenarios, we expect a positive impact on earnings as we seek to mitigate environmental impact.

Aerospace & Ship Division
Relevant segment net profit (FYE 3/2023): approx. ¥28.2 billion
Relevant segment assets (as of March 31, 2023): approx. ¥334.6 billion
IEA STEPS (+2.7˚C)
IPCC RCP4.5 (+2.4˚C)

IPCC RCP8.5 (+4.3˚C)Transition scenarios (below 2˚C):(1.5˚C):IEA B2DS (+1.75˚C)
IEA NZE (+1.5˚C)

IEA SDS (+1.65˚C)
IPCC RCP2.6 (+1.6˚C)
IPCC RCP1.9 (+1.5˚C)Figures in parentheses correspond to the projected temperature rise by 2100 under each scenario. Note: Data for IEA RTS referenced from 2014 rather than 2020. Note: Data for IEA SDS referenced from 2019 rather than 2020. Note: Data for 2020 are scenario-based projections rather than actual figures.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

111

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations
Baseline scenarios

Grain demand

Global grain demand is expected to rise.
In line with rising grain demand, cultivation area is also expected to expand by deforestation.
In North America, it is expected that the cultivable period will be extended mainly in the western and southern regions due tothe rise in temperature.
Overall, there are many regions with precipitation increases, and this tendency is more remarkable in the baseline scenarios.
The water stress across North America is expected to be high in the western region, but relatively low in the eastern region.

Agri-inputs business (North America)

Transition scenarios

6,000
5,000
4,000
3,000

Transition scenarios
Business environment overview

Baseline scenarios(Million t DM/yr)

2020* 2030

Global grain demand is expected to rise.
In line with rising grain demand, cultivation area is also expected to expand by converting land from other applications.
In North America, it is expected that the cultivable period will be extended mainly in the western and southern regions due tothe rise in temperature.
Overall, there are many regions with precipitation increases, but it will tend to decline in the southwestern and central regions.
The water stress across North America is expected to be high in the western region, but relatively low in the eastern region.
However, its impact will be smaller than the one in baseline scenarios.

2040

2050

2020* 2030

2040

2050 (CY)

Cultivation area
Baseline scenarios

Transition scenarios(Million ha)

1,800
1,700
1,600
1,500
1,400

2020* 2030

2040

2050

2020* 2030

2040

2050 (CY)* Refer to chart legend below.

Responses to future business risks/
opportunities
Note: Unless otherwise stated, the analysis target is up to 2030.

We will continue to grow earnings by capturing the increase of grain and food demand. The extension of the cultivable period caused by global warming is also expected to contribute to ourearnings increase.
We will increase our competitiveness and expand our business by providing goods and services that support higher crop yields and lower environmental impact.
To reduce physical risks associated with the impact on logistics functions due to the increase and intensification of natural disasters, we will diversify products and services, and respond to water stress by
expanding networks in relatively unaffected regions.

Impact on performance up to 2030

Positive (Low)

We expect a positive impact on our earnings due to rising grain demand. In the transition scenarios, the need for higher crop yields could bring fast growth to our agri-inputs business.

Agri Business Division

Financial information

Relevant segment net profit (FYE 3/2023): approx. ¥42.7 billion (including net profit of approx. ¥47.0 billion by Helena Agri-Enterprises*)
Relevant segment assets (as of March 31, 2023): approx. ¥1,099.3 billion* Group company engaged in sales of agricultural materials and provision of various services in the U.S.

Baseline scenarios:

IEA RTS (+2.7˚C)
IPCC RCP6.0 (+2.8˚C)

IEA STEPS (+2.7˚C)
IPCC RCP4.5 (+2.4˚C)

IPCC RCP8.5 (+4.3˚C)Transition scenarios (below 2˚C):(1.5˚C):IEA B2DS (+1.75˚C)
IEA NZE (+1.5˚C)

IEA SDS (+1.65˚C)
IPCC RCP2.6 (+1.6˚C)
IPCC RCP1.9 (+1.5˚C)Figures in parentheses correspond to the projected temperature rise by 2100 under each scenario. Note: Data for IEA RTS referenced from 2014 rather than 2020. Note: Data for IEA SDS referenced from 2019 rather than 2020. Note: Data for 2020 are scenario-based projections rather than actual figures.

Value Creation at Marubeni

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Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

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Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations
Baseline scenarios

Forest area

Paper/pulp-related production is expected to rise gradually.
Forest area is expected to decrease.

Baseline scenarios

Transition scenarios(Million ha)

4,000Transition scenarios

Forestry businessBusiness environment overview

Paper/pulp-related production is expected to rise gradually.
Supplies of wood-derived biomass fuels are expected to increase.
Forests and cultivated areas for bioenergy are expected to grow.
Introduction and stricter enforcement of carbon pricing regimes from 2030 will boost the importance of forests for absorption
and sequestration of CO2. This will focus attention on approaches that use plantation forests and bioenergy technologies
such as BECCS*1.

3,750

3,500

2020*2 2030

*1. Bio-Energy with Carbon Capture and Storage

2040

2050

2020*2 2030

2040

2050 (CY)*2. Refer to chart legend below.

Responses to future business risks/
opportunities

We will improve the sustainability of our forest plantation businesses and seek to increase the value of long-term stable supplies of forestry resources.

Note: Unless otherwise stated, the analysis target is up to 2030.

environmental value, and lead to the building of asset value.

By raising the carbon sequestration of our plantation and managed forests and utilizing the plantation forests for multiple purposes, we will boost carbon sequestration volumes, increase

Impact on performance up to 2030

Positive (Med)

Under the baseline scenarios, the reduction in forest area could lead to an increase in the value of existing afforestation assets. Under the transition scenario, climate change measures
will improve forest value, and the expansion of forest area will increase opportunities for business expansion, which will have a positive impact on earnings.

Forest Products Division
Relevant segment net profit/loss (FYE 3/2023): net loss of approx. ¥9.4 billion (including net profits of approx.¥9.0 billion by Musi Pulp Project*3 and approx. ¥1.8 billion by WA
Financial information

Plantation Resources*4)
Relevant segment assets (as of March 31, 2023): approx. ¥323.2 billion*3. Indonesia-based Group company engaged in forestry (hardwood plantation) and manufacture/sales of pulp
*4. Australia-based Group company engaged in plantation forest management and manufacture/sales of wood chips for use in production of paper and biomass fuels

Baseline scenarios:

IEA RTS (+2.7˚C)
IPCC RCP6.0 (+2.8˚C)

IEA STEPS (+2.7˚C)
IPCC RCP4.5 (+2.4˚C)

IPCC RCP8.5 (+4.3˚C)Transition scenarios (below 2˚C):(1.5˚C):IEA B2DS (+1.75˚C)
IEA NZE (+1.5˚C)

IEA SDS (+1.65˚C)
IPCC RCP2.6 (+1.6˚C)
IPCC RCP1.9 (+1.5˚C)Figures in parentheses correspond to the projected temperature rise by 2100 under each scenario. Note: Data for IEA RTS referenced from 2014 rather than 2020. Note: Data for IEA SDS referenced from 2019 rather than 2020. Note: Data for 2020 are scenario-based projections rather than actual figures.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations
The Marubeni Group conducts business activities globally and in a wide range of sectors. Our performanceand financial position may be adversely affected due to the emergence of physical risks. According to the
IPCC Sixth Assessment Report, every additional 0.5°C of global warming causes increases in the intensityand frequency of hot extremes, including heatwaves, heavy precipitation and droughts, and in the event of
a 4°C scenario (SSP5-8.5) increases in sea levels may approach two meters by the end of the present century.
According to a report by the Emergency Event Database (EM-DAT), the number of floods,
hurricanes, and other natural disasters worldwide and the value of the economic damage caused
are higher than with other natural disasters. With wildfires, the value of the damage caused by each
event is generally also thought to be great.
We anticipate impacts on every business, including on business base*2 facilities, logistics, and supply
chains. We are taking varied measures to mitigate risks, including the formulation of Business Continuity
Plans (BCP) and disaster countermeasures, the use of various types of insurance, and awareness raising

activities for relevant stakeholders, including employees and local residents, in areas such as measuresagainst wildfires. Meanwhile, some Marubeni Group businesses operate services that contribute to
reducing and avoiding physical risk and we believe that demand for relevant services may rise.
We are evaluating whether individual measures are optimal and are considering establishment ofa system to respond to any crisis. In April 2022, Marubeni Group updated the BCP, which was the
scenario-based approach, and implemented an All-Hazards BCP, impact-based approach preparing
for natural disasters and other calamities. We have founded a dedicated organization within the
General Affairs Department of the Head Office to make the BCP function effectively and implement a
Business Continuity Management (BCM) system for responding quickly in the event of a disasterdamaging employees, systems, offices (buildings), payment functions, or other critical resources
related to the management of Group companies*3.
In businesses where the greatest impact is envisaged, we have taken the measures outlined below.

*1. Physical risk consists of acute risk (including increased severity of extreme weather events such as cyclones and floods) and chronic risk (including changes in patterns of precipitation, extreme fluctuations in weather patterns, rising mean temperatures, rising sea levels).
In addition to direct impacts in the form of loss of Marubeni Group assets and earnings, indirect impacts may also be experienced such as opportunity loss through supply chain interruption.
*2.

Global Business Portfolio: P.85 Agri Business Division, P.86 Forest Products Division, P.88 Metals & Mineral Resources Division, P.90 Energy Division, P.91 Power Division*3.

P.65 Risk Management

Physical risks

Power generation, metal and mineral resource investment, energy resource investment (oil/gas/LNG)
Anticipated business impacts

According to the IPCC Sixth Assessment Report, the global proportion of major tropical cyclone occurrence has increased over the last four decades.
In the case of a flood, typhoon or other event exceeding the envisaged strength, there is likely to be a certain degree of impact depending on the region.

Responses to future business risks/
opportunities

We are working to realize project design and operation that takes account of a wide range of risk including natural disasters.
We are working on a range of measures to avoid or mitigate direct damage to buildings or other assets.
Property damage insurance and business interruption insurance, depending on the business, are procured for each building or asset.
Since its foundation, the Marubeni Group company Marunix Corporation, has built a track record as an insurance broker for overseas infrastructure projects, for which, depending on the case, it canoffer comprehensive analysis and assessment, and support for proposal and implementation of risk management programs.

Financial information

Segment information: P.107 Power Division; P.109 Metals & Mineral Resources Division; P.108 Energy Division.

Agri-inputs (North America)
Anticipated business impacts

Poor harvests due to the change of climate patterns in North America, our main areas, could have significant impact on earnings of our agri-inputs business.
Paralysis of logistics functions due to extreme weather conditions could affect our business.

Responses to future business risks/
opportunities

Expansion of agricultural support business through sales of agri-inputs materials and providing services that contribute to improving productivity.
We will comprehensively manage risks by geographically diversifying and expanding the procurement and sales network, and diversifying products and services.

Financial information

Segment information: P.111 Agri Business Division

Forestry
Anticipated business impacts

Wildfires across areas of Southeast Asia and Western Australia due to the drier conditions and increased incidence of lightning strikes associated with climate change and global warming could havea significant impact on the earnings from our plantation forestry and wood-derived resources businesses.

Responses to future business risks/
opportunities

To address the threat from wildfires, we are installing fire-fighting equipment, investing in systems for fire prevention and monitoring, and conducting activities to raise awareness in local communities.
We are installing meters-wide firebreaks (gaps where trees are not planted) to help create separate blocks of plantation forest to better prevent fire from spreading.
In addition to appropriate management of two projects in two countries overseas with around 130,000 hectares of forest (total gross project area around 300,000 hectares), we are engaged inresearch into forest resource utilization in anticipation of the decarbonized society of the future.

Financial information

Segment information: P.112 Forest Products Division

113

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

114

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Net Profit of Major Group Companies
Company Name

Lifestyle Division
Marubeni Fashion Link
Saide Tekstil Sanayi ve Ticaret
Marubeni Intex
B-Quik BusinessConveyor belt distribution business
IT Solutions Division
Marubeni Information Systems
Marubeni IT Solutions
MX Mobiling
ARTERIA Networks
Marubeni Logistics
Food Division- I
Yamaboshiya
United Super Markets Holdings Inc.*3
The Nisshin OilliO Group*4
Cia.Iguacu de Cafe Soluvel
Marubeni Foods
Benirei
Food Division- II
Creekstone Farms Premium Beef LLC
Wellfam Foods
Rangers Valley Cattle Station
S FOODS*4
Gavilon Grain Business*5
Columbia Grain International
Marubeni Nisshin Feed
Pacific Grain Terminal
Agri Business Division
Helena Agri-Enterprises
MacroSource (former Gavilon Fertilizer Business)
Forest Products Division

Consolidated/ Equity method*1

Equity Portion*1

2019.3

Consolidated
Equity method
Consolidated
Consolidated
Consolidated

100%
45.5%
100%
90.0%
100%

1.0
0.3
1.1
2.2
—

0.9
0.1
1.2
2.3
—

0.2
0.2
1.4
2.5
—

0.2
0.3
1.3
2.7
1.5

0.9
0.1
1.4
3.8
2.3

Planning, manufacturing and sale of apparel and goods

Consolidated
Consolidated
Consolidated
Consolidated
Consolidated

100%
80.0%
100%
50.1%
100%

1.8
0.7
6.2
2.2
1.0

1.7
0.9
6.6
2.2
1.0

1.6
0.9
5.8
2.2
1.2

1.4
1.0
3.7
2.4
1.5

1.8
1.3
3.6
2.6
1.5

IT solution provider for full range of IT lifecycle in every industry

Consolidated—
Equity method
Consolidated
Consolidated
Consolidated

75.6%
—
16.0%
100%
100%
99.8%

1.4
0.8
1.4
1.2
0.7
0.6

1.3
0.2
1.3
0.8
0.7
0.3

0.7
1.3
1.4
1.1
0.7
0.6

1.0
0.8
1.4
0.7
0.7
1.2

1.3
0.2
1.8
(0.2)
0.7
1.3

Wholesale of confectionery products to mass-retail and convenience storesConsolidated
Consolidated
Consolidated
Equity method
Consolidated
Consolidated
Consolidated
Consolidated

100%
100%
100%
15.3%
100%
100%
60.0%
78.4%

2.5
3.4
(0.1)
1.1
(6.8)
(11.1)
1.4
0.7

4.3
2.4
0.9
1.0
(87.5)
(9.0)
1.8
0.6

9.5
4.2
(0.6)
1.5
16.4
3.6
2.1
0.7

20.5
3.4
1.4
1.8
15.0
2.2
2.1
0.8

12.5
3.6
0.2
1.6
4.2
(1.8)
(1.4)
0.9

Production, processing and sale of beef, etc. in the U.S.

Consolidated
Consolidated

100%
100%

23.0
2.1

24.9
(0.4)

22.8
5.0

35.1
30.0

47.0
(6.3)

Sale of agricultural materials and provision of various services in the U.S.

6.2

(3.7)

(4.4)

2.2

9.0

Forestry (afforestation of hardwood), production and sale of pulp in Indonesia

2.1
—
1.1
0.9

1.6
—
2.0
1.3

(0.3)
(0.5)
2.4
1.2

1.4
(1.0)
2.1
1.0

1.8
(14.3)
1.2
1.0

Wood chip production and plantation in Australia

2.1
—

2.3
—

1.6
(0.3)

1.6
0.4

1.4
(0.2)

Wholesale of forest products including all types of paper

MUSI Pulp Project

Consolidated

WA Plantation Resources
Kraft of Asia Paperboard & Packaging
Koa Kogyo
Fukuyama Paper

Consolidated
Consolidated
Consolidated
Consolidated

TEL 85.1%
MHP 100%
100%
100%
80.0%
55.0%

Marubeni Forest LinX
H&PC Brazil Participacoes (Santher)

Consolidated
Equity method

100%
49.0%

2020.3 2021.3*2 2022.3*1. Status as of March 31, 2023.
*2. Due to the early application of IAS 12, figures for FYE 3/2021 have been adjusted retroactively.
*3. We hold 14.7% of the outstanding shares of this company through a holding company. Stated figures that are multiplications of disclosed figures of this company
and our equity portion, are shown for reference.

2023.3

Description of business(Billions of yen)

Planning, manufacturing and sale of apparel and goods
Sale of industrial materials, lifestyle materials and products
Car maintenance business in the ASEAN
Sale of and services for conveyor belts, parts, and other industrial use rubber products in North America

Sales planning of information and communication systems, design, and development of software
Sale of mobile phones and related products
Provision of various network services for businesses and condominiums
International combined transport operation (NVOCC), 3PL (Third-party Logistics), ocean & air freight forwarding, consultancy relating to logistics

Supermarket operators in the Tokyo metropolitan area
Processing and sale of edible oil business
Manufacturing and sale of instant coffee in Brazil
Import, export, and sale of food products
Wholesale of seafood products and warehousing

Marketing of livestock, meats and processed products
Cattle raising and beef sales business in Australia
Wholesale, retail, and restaurant business of meats
Origination, storage, export, and domestic sale of grain produced in North America
Origination, storage, export, and domestic sale of grain produced in North America
Manufacture and sale of livestock feed
Warehousing, stevedoring and transportation operations

Wholesale of fertilizer in the U.S., etc.

Manufacture and sale of containerboard in Vietnam
Manufacture and sale of corrugating medium and linerboard
Manufacture and sale of corrugating medium and core board
Manufacture and sale of hygiene products in Brazil*4. Stated figures that are multiplications of disclosed figures of this company and our equity portion, are shown for reference.
*5. The sale of Gavilon’s grain business was completed on October 3, 2022.

MARUBENI CORPORATION INTEGRATED REPORT 2023

Value Creation at Marubeni

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

115

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Net Profit of Major Group Companies
Company Name

Chemicals Division
Marubeni Plax
Olympus Holding (Orffa)
Marubeni Chemix
Metals & Mineral Resources Division
Roy Hill Iron Ore Project
Marubeni Resources Development
Marubeni LP Holding
Marubeni Metals & Minerals (Canada)
Marubeni Aluminium Australia
Marubeni-Itochu Steel
Energy Division
LNG Projects*3
Oil & Gas E&P*4
ENEOS GLOBEMIECOPower Division
IPP Projects*5
SmartestEnergy
Infrastructure Project
FPSO Projects*6
Overseas Water/Wastewater Services and IWP Projects*7
Aerospace & Ship Division
Marubeni Aviation Parts Trading
Vessel owning and operating business
Finance, Leasing & Real Estate Business Division
Nowlake business
PLM Fleet
Marubeni SuMiT Rail Transport
Mizuho Marubeni Leasing
Aircastle Business
Marubeni Real Estate Management
Marubeni Safenet
Construction, Industrial Machinery & Mobility Division
Construction Machinery Business
Automotive Aftermarket Business
Marubeni Auto Investment (U.K.)
Marubeni Techno-Systems
Marubeni Ele-Next

Consolidated/ Equity method*1

Equity Portion*1

2019.32020.3 2021.3*2 2022.3

2023.3

Description of business

Consolidated
Consolidated
Consolidated

100%
100%
100%

0.9
1.4
1.1

0.8
0.4
0.9

0.8
1.0
0.9

1.5
1.2
1.6

2.2
(0.1)
2.0

Domestic sale and foreign trade of plastic resins and products

Equity method
Consolidated
Consolidated
Consolidated
Consolidated
Equity method

15.0%
100%
100%
100%
100%
50.0%

2.9
25.4
7.0
(0.6)
(4.2)
12.1

15.4
25.2
(59.5)
2.8
(0.4)
11.2

30.1
5.0
16.4
0.9
(0.3)
8.7

49.2
55.3
43.5
7.5
3.2
31.3

28.5
98.8
18.5
3.7
1.9
47.8

Investment in iron ore business in Australia—
Consolidated
Equity method
Consolidated

—
100%
20.0%
100%

15.5
—
0.9
7.0

6.9
—
0.6
3.3

5.4
—
1.9
4.1

8.5
12.2
2.7
2.5

8.1
8.3
2.1
4.9

Liquefaction of natural gas overseas—
Consolidated

—
100%

—
2.1

35.5
(0.8)

35.8
1.7

33.3
5.1

42.2
27.8

Overseas and domestic power generation

—
—

—
—

3.9
4.3

1.6
(18.3)

3.2
6.1

2.8
6.0

5.3
6.8

FPSO project investment and management

Consolidated
Consolidated

100%
100%

0.9
—

2.6
—

(0.8)
—

(0.5)
22.9

0.5
24.5

Investment in aircraft parts trading business in the U.S.

Equity method
Equity method
Equity method
Equity method
Equity method
Consolidated
Consolidated

21.7%
50.0%
50.0%
50.0%
75.0%
100%
100%

7.6
2.5
1.1
—
7.3
1.2
0.5

11.0
2.5
1.1
—
(39.8)
0.7
0.4

22.6
1.6
0.8
0.6
(7.8)
0.3
0.4

24.2
2.5
1.0
1.3
(22.2)
0.9
0.5

29.6
3.1
1.5
2.0
(1.0)
1.1
0.5

Investment in used car retail financing businesses in the U.S.

——
Consolidated
Consolidated
Consolidated

—
—
100%
100%
100%

—
1.7
1.1
1.3
0.6

—
2.0
0.7
2.0
0.5

—
2.0
0.9
1.3
0.6

8.7
3.9
2.2
1.4
1.3

14.3
3.3
1.1
2.0
2.1

Sale of construction machinery and related services, financing*1. Status as of March 31, 2023.
*2. Due to the early application of IAS 12, figures for FYE 3/2021 have been adjusted retroactively.
*3. The contract of Qatar LNG terminated in Q3 of FYE 3/2022.
*4. Due to revision of the calculation method, U.S. onshore was added to the scope of the oil and gas development business from the FYE 3/2023 full-year results.
FYE 3/2022 figures have also been adjusted accordingly.

(Billions of yen)

Sale of feed additives
Domestic sale and foreign trade of organic chemicals and functional chemicals

Investment in steelmaking material business in Australia
Investment in copper business in Chile
Smelting and sale of aluminum ingots and investment in manufacturing business of magnesium in Canada
Smelting and sale of aluminum ingots in Australia
Sale and business management of steel products

Total of oil and gas E&P at U.S. Gulf of Mexico, U.S. onshore and offshore India
Import and sale of LPG, and sale of new energy-related equipment
Sale of all types of petroleum products and natural gas

Electricity aggregation and retail business in the U.K.

Overseas water/wastewater services and IWP projects

Owning and operating of vessels

Leasing and rental of refrigerated trailers in the U.S.
Investment in railcar leasing business in the U.S.
General leasing and related businesses
Aircraft operating lease business in the U.S.
Leasing and subleasing of real estate, management of office buildings and complex facilities
Insurance agency and lending business

Automotive aftermarket business in the U.S.
Investment in retail sales business of automobiles in the U.K.
Sale, export, and import of industrial machinery
Sale of electrical equipment connecting parts and materials*5. Total IPP project profits from consolidated subsidiaries and equity-method associates and joint ventures. In line with reorganization implemented in FYE 3/2023,
figures for FYE 3/2022 have been adjusted.
*6. Total FPSO business profits from consolidated subsidiaries and equity-method associates and joint ventures.
*7. Total overseas water/wastewater service and IWP project profits from consolidated subsidiaries and equity-method associates and joint ventures.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

116

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Outstanding Balance of Country Exposure
As of March 31, 2023

92.1

1.0

124.9
38.9 1.6 3.6

1.7 1.2
11.4
Europe26.1¥208.1

Japan
142.0

89.4

billionbillion

78.3

156.6

471.6

¥1,159.2

7.8 7.1
9.3

North America¥960.9¥148.7

327.6

124.5
21.2
48.2

billionMiddle/Near East

Southeast
Asia

101.9

352.5

217.1

Energy & Infrastructure Solution Group

16.8

0.2

32.6
Oceania¥356.4billionTransportation & Industrial Machinery,
Financial Business Group

4.7 0.5

41.3¥554.2

Materials Groupbillion

1.7

11.1

Consumer Products Group

407.6

298.8

billion

164.1

201.9

South
America

337.9¥589.3CDIO

billion

Others
The figure within each pie chart indicates Net Risk Exposure. The size of the pie is in rough proportion to the total risk exposure.
(Billions of yen)Countries/regions*1

Gross Risk Exposure

Net Risk Exposure*2

Japan

1,159.2

1,159.2

USA

911.5

Chile

(Billions of yen)Countries/regions*1

Gross Risk Exposure

Net Risk Exposure*2

UAE

60.1

60.1

911.5

Portugal

59.5

59.5

373.4

373.4

Denmark

58.9

58.9

Australia

352.5

352.5

UK

52.7

44.4

Indonesia

221.3

156.4

Canada49.3

49.3

Brazil

187.6

187.6

Jamaica

44.8

1.9

Singapore

170.3

170.3

Netherlands

41.5

41.5

consolidated subsidiaries, long-term "Gross Risk Exposure"

Philippines

111.1

111.1

P.R. China

36.8

36.1

(the total amount of long-lived assets such as long-term

S.R. Viet Nam

104.5

89.7

Oman

32.1

20.0

Taiwan

79.0

79.0

Total

4,353.9

4,181.9*1. Among the assets held by Marubeni and its

credit, fixed assets, and investments) of over 30.0 billion yen.
*2. Net Risk Exposure is Gross Risk Exposure minus theamount secured by insurance.

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Organization
As of April 1, 2023

Business Division

Audit & Supervisory Board

General Meetingof Shareholders

Audit & Supervisory Board Members

Board of Directors

Lifestyle Division

Business Group

Audit & Supervisory Board Members' Office

President

Corporate Staff Group

Corporate Management
Committee

Consumer Products
Group

Agri Business Division

Executive Secretariat

Forest Products DivisionCorporate Planning & Strategy Department

Committee of
Executive Officers

CSO

Chief Strategy Officer

Regional Planning & Coordination Department

Food Division- I
Food Division- II

Audit Department

Committee of Heads
of Divisions

IT Solutions Division

Materials Group

Research InstituteChemicals Division
Metals & Mineral Resources DivisionCorporate Communications Department

New Energy Business Development Department

Corporate Accounting Department

CFO

Chief Financial Officer

Business Accounting Department
Finance Department

Energy & Infrastructure
Solution Group

Sustainability Management Department

CAO

Chief Administrative Officer

Information Strategy Department

Aerospace & Ship Division
Transportation &Industrial Machinery,
Financial Business Group

Next Generation Business Development Division

Legal Department

CDIO

Chief Digital Innovation Officer

Digital Innovation Department

Finance, Leasing & Real Estate Business Division
Construction, Industrial Machinery & Mobility Division

Risk Management Department

Compliance Control Department

Power Division
Infrastructure Project Division

Human Resources Department
General Affairs Department

Energy Division

CDIO
Next Generation Corporate Development Division
Domestic Branches & Offices
Overseas Branches & Offices117Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

118

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

IR Activities

External Evaluation

In keeping with the corporate creed of Fairness, Innovation, and Harmony, we strive to build relationshipsof trust with all stakeholders, including shareholders and investors, by providing information properly,
fairly and in a timely manner, as well as in ways that are easy to understand. This information includes
financial and business performance information as well as non-financial information needed to makeinvestment decisions such as management strategy, in addition to the information that must be
disclosed for statutory compliance. We aim to achieve sustainable growth in corporate value by
obtaining remarks from stakeholders through an effective two-way dialogue, and sharing them within
the Company including the management and directors.

ESG Evaluation

IR Activity Record
Activities

FYE 3/2021

Meetings for securities analysts and institutional investors*1
Japanese
Overseas
IR Meeting on Financial Results for securities analysts
and institutional investors
IR Meeting on Business Operation for securities
analysts and institutional investors
Marubeni Sustainability Information Session for
securities analysts and institutional investors
Overseas roadshows*2
Business Presentation Meetings for individual investors

FYE 3/2022

MSCI ESG Rating: AAA

MSCI Japan ESG Select Leaders Index

MSCI Japan Empowering Women Index (WIN)

227 companies 353 companies 390 companies
164 companies 241 companies 225 companies
63 companies 112 companies 165 companies
4 times

4 times

4 times

1 time2 times

1 time1 time0 time1 time0 time2 times

0 time4 times

3 times
4 times

Main Dialogue Topics at FYE 3/2023 Meetings for Securities Analysts and Institutional Investors
Usages of the funds collected through the sale ofGavilon’s grain business
Status of the core businesses and actions to improve
unprofitable businesses
Impact of market-fluctuations on the business results/
performance
Policy on holding and reduction of cross-shareholdings

Comments and concerns communicated to us by shareholders and institutional investors are regularly
reported to the Board of Directors. Specifically at the time of the revision of the shareholder return
policy in February 2023, we gathered opinions through dialogue and discussed them internally before
making decisions.
Change in Number of Shareholders
Total number of shareholders
Individual shareholders

CDP: Selected as a Water Security
A-list Company

FYE 3/2023*1. Total no. of events, including meetings at overseas roadshows.
*2. As a measure against COVID-19, overseas events were replaced with individual online meetings in FYE 3/2021 and FYE 3/2022.

Impact of the global inflation and economic recession on
the business results/performance
Capital Allocation Policy
Shareholder return policy (dividends, share buybacks)
Investment policy and status of investment pipeline
Drivers of growth and focus areas

For details, please see our website:
https://marubeni.disclosure.site/en/themes/34/

March 31, 2021

March 31, 2022

March 31, 2023

209,517
206,744

233,280
230,330

281,686
278,310

FTSE4Good Global Index Series

S&P/JPX Carbon Efficient Index* Marubeni is selected as a constituent of all six of the indices adopted by Japan’s Government Pension Investment Fund for ESG
investment in Japanese companies (as of August 2023).

External Certification/Evaluation
Selected as a Nadeshiko Brand

Received “Eruboshi”
certification

Received “Platinum
Kurumin” certification

Recognized as 2023 Health and Productivity
Management Outstanding Organization(“White 500” organization)

Inclusion in Health &Productivity Stock
Selection

Selected as a “Digital
Transformation Certified
Business Operator”

Value Creation at Marubeni

MARUBENI CORPORATION INTEGRATED REPORT 2023

Realizing Value Creation

Initiatives for More Sustainable Value Creation

Business Portfolio

119

Corporate Data

Financial Data / Non-Financial Data / State of Major Green Business Initiatives / Major Progress in Greening All Business Domains / Scenario Analysis of Climate Change Risks and Opportunities in Line with the TCFD Recommendations /Net Profit of Major Group Companies / Outstanding Balance of Country Exposure / Organization / IR Activities / External Evaluation / Company Profile / Stock Information

Company Profile As of March 31, 2023

Stock Information As of March 31, 2023
Credit Rating*1

Company Name

Marubeni Corporation

Number of Shares Authorized
4,300,000,000

Securities Code

8002

Head Office4-2, Otemachi 1-chome, Chiyoda-ku,
Tokyo 100-8088, Japan
Tel: 81-3-3282-2111
E-mail: tokb138@marubeni.com

Number of Shares Issued andOutstanding*1
1,684,926,107

Number of Branches
and Offices(Including Tokyo Head Office)131 branches and offices,(As of April 1, 2023)

consisting of Head Office, 12 Japan branches and offices,
55 overseas branches and offices, and 29 overseas corporate
subsidiaries with 34 associated branches and offices.

FoundedMay 1858

Incorporated

December 1, 1949

Paid-in Capital¥263,324 million

Number of Employees

4,340 (Marubeni Group: 45,995)

Stock Listings
Tokyo

Long term(Outlook)

Short
term

AA- (Stable)

J-1+

Rating and Investment Information (R&I) AA- (Stable)

a-1+

S&P Global Ratings

BBB+ (Stable)—

Moodyʼs

Baa1 (Stable)—

Credit Rating Agency

Japan Credit Rating Agency (JCR)

Number of Shareholders
281,686

Distribution of Shares by Type of Shareholder (%)

Share Unit
100 shares

Others 6.04

Record Date for Year-End
Dividend
March 31 of each year

Foreign individuals
and companies
35.28

Record Date for Interim Dividend
September 30 of each year
Transfer Agent of Common Stock
Mizuho Trust & Banking Co., Ltd.

* The sum of each ratio may not be 100%,
because each ratio has been rounded.

Financial institutions
35.39

Other domestic
companies
4.38

Individuals
18.91

Our Major Shareholders
Stake in the Corporation

Corporate Website

Top pagehttps://www.marubeni.com/en/
IR pagehttps://www.marubeni.com/en/ir/
Sustainability pagehttps://marubeni.disclosure.site/en/

Business Year
Regular General Meetingof Shareholders

April 1 to March 31 of the following year
June of each year

Number of Shares Held(Thousands)*2

Shareholding Ratio(%)*3

The Master Trust Bank of Japan, Ltd. (Trust account)

269,050

15.86

Euroclear Bank SA/NV

127,969

7.54
5.77

Name of Shareholder

Custody Bank of Japan, Ltd. (Trust account)

97,798

Meiji Yasuda Life Insurance Company

37,636

2.22

JPMorgan Securities Japan Co., Ltd.

32,661

1.93

Mizuho Bank, Ltd.

30,0001.77
1.65

STATE STREET BANK WEST CLIENT-TREATY 505234

27,975

Sompo Japan Insurance Inc.

26,2501.55

Nippon Life Insurance Company

23,4001.38

JP MORGAN CHASE BANK 385632

20,7491.22*1. As of August 31, 2023
*2. The number of shares held of less than 1,000 shares was discarded.
*3. The shareholding ratios are calculated after deducting the treasury stock from the number of shares issued and outstanding.
The percentages are rounded to the nearest two decimal points.

https://www.marubeni.com/jp/