Our Values & Strengths

Marubeni’s Value Creation Process(as of March 31, 2018)

Marubeni creates new value by deploying various forms of capital in its business activities in pursuit of unrivaled strengths. The economic value and societal value (resolution of societal problems) thus created are shared broadly among stakeholders and reinvested in Marubeni’s operations, leading to medium-to long-term growth in corporate value.

OUR INPUTS
  • Financial Capital: Strong financial foundation
  • Intellectual Capital: Operational know-how and brands amassed over decades
  • Human Capital: Diverse, professional workforce
  • Social and Relationship Capital: Partnerships/relationships of trust with local communities
  • Natural Capital: Global environment and natural resources underpin all businesses
VALUE DRIVERS
Fairness, Innovation and Harmony,

Marubeni creates new value in accord with the spirit of its Company Creed, “Fairness, Innovation and Harmony,” by capitalizing on the core functions, expertise, know-how and other strengths it has amassed over its long history.

OUR OUTCOMES
Reinvestment

Management Policies by Business Model To globally build a foundation for long-term earnings growth, Marubeni is pursuing business and investment strategies tailored to its businesses' respective business models, operating environments and other attributes.

  • Distribution Businesses
  • Finance Businesses
  • Stable Earnings-Type Businesses
  • Natural Resource Investments

Management Policies by Distribution Businesses

  • Promote platform-type business models in regions, fields and product areas that are expecting growth through M&A and organic growth to expand earnings and improve profitability over the long term.
  • Primarily take majority stakes.

Distribution Businesses(as of March 31, 2018)

Helena Agri-Enterprises, LLC

Helena Agri-Enterprises

Pursuing a locally focused business model while maximally leveraging a nationwide network, Helena has established itself as one of the top U.S. agri-input retailers.

INPUTS
Financial Capital:
100% owned by Marubeni Group
Human Capital:
A workforce of approx. 5,000, comprising sales, technology, agronomy and administrative experts dedicated to the agri-business space
Social/Relationship Capital:
Network of approx. 500 locations in the U.S.
VALUE DRIVERS
  • Highly knowledgeable and experienced sales force keenly attuned to customers’ needs
  • Own-brand product line, including crop protection products and value-added fertilizers
  • Consulting service backed by deep agronomy knowledge and information technology

Close ties with local communities and nationwide network
OUTCOMES
  • Preferred distributor ranked second in the U.S. by market share (approx. 8% share)
  • Offers solutions that increase yield and operating efficiency through multi-faceted IT-enabled analysis of soil and crop conditions
Helena's Strengths and Competitive Edge
Helena Chemical Company's Strengths and Competitive Edge
  • Provides customers with all materials at every stage of farming from tilling through harvesting based on strategic partnerships with major suppliers
  • Deeply rooted in each region with geographic diversity
  • Exclusive product line including value-added fertilizers and additives for crop protection products
  • Employees well-versed in soil science, agricultural methods, and regulatory systems of individual regions
  • Consulting services leveraging AgTech knowledge
  • Accumulated understanding of customers’ needs and sales people who provide solutions representing growers’ interests

About Helena

Other Distribution Businesses

Management Policies by Finance Businesses

  • Promote platform-type business models in regions, fields and product areas that are expecting growth through M&A and organic growth to expand earnings and improve profitability over the long term.
  • Primarily take majority stakes. However, allow for minority stakes when large-scale investment is required.

Finance Businesses(as of March 31, 2018)

MAC Trailer Leasing

MAC Trailer Leasing

MAC Trailer Leasing, Inc. (PLM) has established a new business model by redefining its unique strengths through a focus on customer-oriented products and services.

INPUTS
Financial Capital:
100% owned by Marubeni Group
Intellectual Capital:
  • High degree of expertise in specialty products/services
  • Nationwide marketing capabilities
  • Decentralized management by local personnel
  • 28 sales locations within the U.S.
Social/Relationship Capital:
Owns fleet of over 7,500 trailers
VALUE DRIVERS
  • Specialization in rental/leasing of refrigerated trailers
  • GPS-enabled maintenance/operation management
  • Control on trailer interior temperature
  • Early compliance with new U.S. standards for transport and handling of frozen/refrigerated foods

Expansion of businesses as a comprehensive refrigerated trailer fleet management company
OUTCOMES
  • No. 1 refrigerated trailer leasing/rental specialist in the U.S.
  • Enables high-quality fresh/frozen food transportation throughout the U.S.
  • Contributes to reducing food spoilage
PLM’s Strengths and Competitive Edge
  • Fleet management in pursuit of optimal refrigerated transport
  • Insight and know-how grounded in ample experience
  • Reductions in client labor and costs
  • Client focused
PLM's Strengths and Competitive AdvantagesPLM's Strengths and Competitive Advantages

Other Finance Businesses

Management Policies by Stable Earnings-Type Businesses

  • As investments in these businesses require large amounts of capital, have a limited upside and high dividend payout ratios, take minority stakes as a matter of policy.
  • Take active role in projects even when holding minority stakes.

Stable Earnings-Type Businesses(as of March 31, 2018)

IPP Business

IPP Business

Realizing stable and sizable profits from a globally expanding portfolio of IPP*1 projects through project development capabilities, problem-solving capabilities and asset management capabilities backed by a proven track record in overseas power projects.

  • IPP: Independent Power Producer
INPUTS
Financial Capital:
Project financing from diverse funding sources
Intellectual Capital:
Know-how cultivated through power plant EPC*2 projects
Social/Relationship Capital:
Globally expanding network of regional development and asset management offices*3
VALUE DRIVERS
Project screening
  • Local sales presence
  • Sourcing
  • Partner selection

Development/construction
  • Negotiations with governments/customers
  • Power plant construction contracts (EPC contracts)
  • Arrangement of financing
  • Project management

Asset management
  • Safe, secure, stable plant operation
  • Asset value enhancement

Project development capabilities, problem-solving capabilities, asset management capabilities
OUTCOMES
  • Japan’s largest IPP with 12 GW of net generation capacity
  • Globally diversified portfolio of 73 projects in wellbalanced mix of 24 developed and developing countries
  • Diverse mix of power sources ranging from large-scale thermal and hydroelectric to eco-friendly renewables
  • 2 EPC: Engineering, Procurement, and Construction
  • 3 In Singapore, Dubai, Johannesburg, London, New York, Hong Kong, Abu Dhabi and Lisbon
IPP Business’s Strengths and C ompetitive Edge
  • Local sales forces
  • Solid reputation through the reliable execution of contracts and competitiveness in EPC and IPP
  • EPC project management capabilities and EPC/IPP synergies
  • Price competitiveness and stable contract fulfillment capabilities in EPC business, a core competency
  • Synergies between EPC and power plant construction management
  • IPP project development capabilities/competitiveness backed by long track record
  • Project development capabilities that are a source of competitiveness in international competitive bidding
  • IPP project development problem-solving capabilities
  • Project management capabilities
  • Proactive project involvement/leadership
  • Asset management staff overseeing owned assets
  • Long-term market analysis and problem-solving capabilities gained from trying new business models in response to power market liberalization/deregulation

Other Stable Earnings-Type Businesses

Management Policies by Natural Resource Investments

  • As the dividend payout ratio is high and investment amounts are large, make participation as a minority stakeholder in projects with operators that are reliable for investing.
  • Establish a framework to balance the Group’s cumulative investment in order to stabilize fluctuating profits at a certain level due to volatile and unstable resource prices.

Natural Resource Investments(as of March 31, 2018)

Roy Hill Iron Ore Project

Roy Hill Iron Ore Project

Marubeni is contributing to the Japanese and other Asian steel industries by stably supplying high-quality, cost-competitive iron ore, capitalizing to the greatest extent on its general trading company functions from a long-term perspective.

INPUTS
Financial Capital:
Total of approximately ¥1 trillion spent on development (15% owned by Marubeni Group)
Intellectual Capital:
  • Extensive marketing experience and broad Asian sales network
  • Project financing expertise
Social/Relationship Capital:
Construction material and heavy machinery supply support from Marubeni Group
Natural Capital:
Vast high-quality iron ore resources
VALUE DRIVERS
  • Highly experienced management team that swiftly commissioned project into production
  • State-of-the-art production management IT system, including remote operation capabilities
  • Long-term sales contracts with leading Japanese/Asian steelmakers

Vertically integrated project with everything from mine through rail/port infrastructure owned by Roy Hill
OUTCOMES
  • Largest single iron ore mine in Western Australia’s Pilbara region, with annual production capacity of 55 million tonnes
  • Creation of 2,000 jobs in operating phase
  • Cost competitiveness
Roy Hill Ir on Ore Project’s Strengths and Competitive Edge
  • Strengths in terms of iron ore resources
  • Huge deposit containing some 2.3 billion tonnes of iron ore
  • High-grade iron ore
  • Source of supply of prospectively scarce lump ore
  • Operational strengths
  • Cost competitiveness
  • Vertically integrated operations, with everything from mine to rail/port infrastructure owned by Roy Hill
  • State-of-the-art production control systems
  • Human resource strengths
  • Solid partnership among project owners
  • Managed by highly experienced management team
  • Broad sales network coupled with long-term sales contracts with Japanese/Asian steelmakers