Seventh EU Asia Top Economist Round Table

10 July 2015

@asiamatters_biz #TERT @asiabusinessweek

‘A New Era in EU Asia Economic Partnership’

10 July 2015Radisson Blu Royal Hotel, Dublin

A Business Perspective on the EU-Japan EPA and EU-Japan Trade

Haruki HayashiExecutive Vice President, Regional CEO, Europe & Africa Mitsubishi Corporation

Haruki (Rooky) HayashiExecutive Vice PresidentRegional CEO, Europe & AfricaMitsubishi Corporation

A Business Perspect ive on the EU- Japan EPA and EU- Japan Trade

1.Uplift in Business Confidence from Abenomics

2.The Benefits of Concluding the EU-Japan EPA

3.A Japanese Company’s Business in Europe

4

C o nt e nt s

1Uplift in Business Confidence from

Abenomics

5

-8

-6

-4

-2

0

2

4

6

8

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

4.4

-6.8

-2.0

1.2

3.9

-8.0-6.0-4.0-2.00.02.04.06.0

Q1 Q2 Q3 Q4 Q1

2014 2015

R e a l G D P G r o w t h R a t e

S o u r c e : C a b i n e t O ffi c e o f J a p a n

( % )

5.0%

0.8%1.7%

( % , a t a n a n n u a l i z e d r a t e )

6

Re c o v e r y o f J a p a n e s e Ec o n o my

-4

-1-3

-12

-8

4

12

1617

1213

12 12

15

5

8 8

46

1214

20

24

19

13

16

19

23

-15

-10

-5

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2012 2013 2014 2015

Large Manufacturers Large Non-Manufacturers

B u s i n e s s C o n fi d e n c e I n d e x

( % p o i n t s , D i ff u s i o n i n d e x o f " F a v o r a b l e " m i n u s " U n f a v o r a b l e " )

7S o u r c e : B a n k o f J a p a n

Re c o v e r y o f J a p a n ’s B u s i n e s s C o n fi d e n c e ( 1 )

VAT

8

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

S o u r c e : B l o o m b e r g

T h e N i k k e i S t o c k A v e r a g e ( y e n )

PM Noda announced to dissolve the House of Representatives (14/11/2012)

130% up

Re c o v e r y o f J a p a n ’s B u s i n e s s C o n fi d e n c e ( 2 )

S o u r c e : C a b i n e t O ffi c e o f J a p a n 9

P r o m o ti n g Fo r e i g n D i r e c t I nv e s t m e nt ( F D I ) i n J a p a n

2The Benefits of Concluding

the EU-Japan EPA

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In April 2013, 1st round of negotiations was held in Brussels In May 2015, 10th round of negotiations was held in TokyoJapan is interested in elimination or reduction of tariffs

(Examples of EU’s tariffs: Automobiles 10%, TV: 14% 　 *both 0% in

Japan)EU is interested in addressing non-tariff measures (NTMs)

(Examples of Japan’s NTMs: automobiles, food, medical devices and

pharmaceuticals)

Overview

To reach an agreement on all key issues preferably by the end of 2015.Schedule

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E U - J a p a n E PA N e g o ti a ti o n s i n c e 2 0 1 3

USA

ＥＵTTIP (Trans-AtlanticTrade and Investment

Partnership) Negotiation Started in 2013

EU-Japan EPANegotiation started

in 2013

TPP (Trans Pacific Partnership)Japan joined negotiation in 2013

currently 12 countries

Japan

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M e ga F r e e Tra d e A g r e e m e n t s ( F TA s )

China-Korea-Japan FTANegotiation started in 2013

RCEP(Regional Comprehensive Economic Partnership)

Negotiation started in 2012ASEAN10, China, Korea, Japan, … India, Australia, New Zealand

J a p a n a s a G a t e w ay t o A s i a Pa c i fi c M a r ke t

USAEUTTIP

EU-Japan EPATPP

Japan

13

3A Japanese Company’s

Business in Europe

14

15 15

M i t s u b i s h i C o r p o ra ti o n : G l o b a l P r e s e n c e

[ Japan ]SapporoSendaiNagoyaNiigataToyamaShizuokaOsakaTakamatsuHiroshimaFukuokaNagasakiNaha

[ Middle East & Central Asia ]IstanbulAnkaraBakuAshgabatTashkentAstanaAlmatyDubaiCairoTel AvivRamallahAmmanRiyadhJeddahAl KhobarBasraDohaAbu DhabiMuscatKuwaitTehran

[ East Asia ]UlaanbaatarBeijingChengduChongqingGuangzhouShenzhenWuhanTianjinXiamenNanjingQingdaoShanghaiDalianShenyangHong KongTaipei

[ North America ]New YorkSan FranciscoSeattleSilicon ValleyLos AngelesHoustonWashington, D.C.DallasPittsburghBostonTucsonVancouverTorontoMexico City

[ Europe & Africa ]LondonLas PalmasMadridParisBrusselsAmsterdamDüsseldorfFrankfurtBerlinMunichMilanOsloPragueStockholmWarsawBucharestBelgradeAthensＳｏｆｉａMoscowVladivostokYuzhno-SakhalinskKievJohannesburgDakarCasablancaAbidjanAlgiersLagosTunisMaputoNairobiAddis AbabaDar es Salaam

[ Latin America ]Guatemala CityPanama CityQuitoLimaLa PazBogotáSantiagoCaracasPuerto OrdazAsunciónBuenos AiresSão PauloRio de JaneiroBelo HorizonteSantos

[ Asia & Oceania ]KarachiIslamabadLahoreNew DelhiMumbaiKolkataChennaiColomboDhakaYangonNay Pyi TawBangkokHaadyaiKuala LumpurBintuluSingaporePhnom PenhVientianeHanoiHo Chi Minh CityJakartaSurabayaBandar Seri BegawanManilaNoumea

MelbourneSydneyPerthBrisbaneMount WaverleyAucklandSeoulKwangyangPohangDangjin 16

M i t s u b i s h i C o r p o ra ti o n : G l o b a l N e t w o r k

Energy Business Group

Metals Group

Machinery Group

Living Essentials Group

Industrial Finance, Logistics & Development Group

Global Environmental & Infrastructure Business Group

Chemicals Group

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M i t s u b i s h i C o r p o ra ti o n : B u s i n e s s G r o u p s

• Acted as intermediary for transactions, mainly earning commissions for intermediary and financial services.

• Also increased commissions through investments.

Past: Intermediary

• Look at entire value chain to increase competitiveness and corporate value of suppliers and business investees.

• Aim to increase dividends and equity in earnings from business investees, while also receiving consideration for our services.

Present: Global Integrated Business Enterprise

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M i t s u b i s h i C o r p o ra ti o n : Va l u e C h a i n

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From UK to EUROPE – One Market

• Founded in Liverpool in 1880, wholly owned by Mitsubishi Corporation since 1989.

• One of Europe’s fastest growing food and drink groups with a global supply network and a portfolio of branded and customer own brand products.

• Head office based in the UK. Has a growing presence across continental Europe, which is managed out of office in The Netherlands. Also has a dedicated sales and marketing office in Poland, a tuna processing facility in Mauritius and most recently a tomato products facility in Italy.

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Fo o d & D r i n k ( 1 )

Poland Site

Mauritius Site

Italy Site

Liverpool HQ

E x p a n d i n g P R I N C E S f r o m U K t o E u r o p e a n d B e y o n d …

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Fo o d & D r i n k ( 2 )

China Japan

Southeast Asia

ThailandVietnam

: Developed markets

: Emerging markets

: Processing

: Farming (Salmones Humboldt in Chile)

North America

South America

Russia

Europe

Cermaq Norway

(60 thousand tons）

Cermaq Canada

(20 thousand tons）

Cermaq Chile+ Salmones Humboldt

(90 + 30 = 120 thousand tons）

: Farming (Cermaq)

S a l m o n Fa r m i n g

1. Primary Businesses

2. History of MC’s aircraft leasing business

1. Aircraft Operating Lease2. Aircraft Management, Remarketing and Advisory

1984- Finance Lease1993- Operating Lease2003- 3rd Party aircraft management & remarketing2008- Establishment of MCAP

3. Owned & Managed Portfolio (as of April-2015 )

4. Supplement Facts of MCAP

Shareholder: 100% Mitsubishi Corporation (“MC”)Employees: 63 (total for MCAP group)Head Office MC Aviation Partners Inc. (Tokyo)Principal Sub: MCAP Europe (Ireland)

MC Aviation Partners Asia (Tokyo)MC Aviation Partners America (US)

5. Customer Worldwide (as of Nov2014)

6. Establishment of leasing JV with Cheung Kong

✈ In January-2015, MCAP established a Joint Venture dedicated to aircraft leasing, with Cheung Kong (Holdings) Limited (“CK”) and Li Ka-shing (overseas) foundation (“LKS”). With a clear intention to grow in asset size, this JV is positioned as the primary source for MCAP to grow its asset under management.

✈ CK and LKS owns 60% in total and MCAP owns 40% of the JV. MCAP provides management service including introduction / evaluate / recommend deals for JV to purchase / sale / remarketing aircraft.

Number of aircraft: about 90 aircraftValue: USD 3.2 bil

✈ JV owns an office in Ireland, where assets are booked and aircraft matters are resolved.

22

A i rc ra ft L e a s i n g

23

Po w e r G e n e ra ti o n & Po w e r Tra n s m i s s i o n

TransmissionGeneration

Battery Energy Storage Service

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B a tt e r y E n e r g y S t o r a g e S e r v i c e F e a s i b i l i t y S t u d y i n I r e l a n d

Formulated in 1934 as the action guidelines of Mitsubishi Trading Company (Mitsubishi Shoji Kaisha)

Based on the teachings of Koyata Iwasaki, the fourth president of Mitsubishi.

CORPORATE RESPONSIBILITY TO SOCIETY“Shoki Hoko”Strive to enrich society, both materially and spiritually, while contributing towards the preservation of the global environment.

INTEGRITY AND FAIRNESS“Shoji Komei”Maintain principles of transparency and openness, conducting business with integrity and fairness.

GLOBAL UNDERSTANDING THROUGH BUSINESS“Ritsugyo Boeki”Expand business, based on an all-encompassing global perspective.

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M i t s u b i s h i C o r p o ra ti o n : C o r p o ra t e P h i l o s o p hy

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Thank you.

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