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Business Development & Strategic Targets in Peru
Takeo AraiMitsui del Peru S.A.
September 12th, 2016
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Index
About Mitsui & Co., Ltd.
History of Business Development in Peru
Current Main Business Activities in Peru
Business Strategic Targets in Peru
Human Development Cooperation in Peru
2
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About Mitsui & Co., Ltd.
3
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MITSUI & CO. at a Glance
About Us
(As of March 31, 2016)
43,611
Number of Employees
(consolidated)
462
Number of Subsidiaries and Equity
Accounted Investees
65Global Network
countries/regions
(As of Aug 1, 2016)
138
Number of Offices and Overseas
Trading Subsidiaries
(As of Aug 1, 2016)
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MITSUI & CO.’s Business Areas
Metals
Machinery & Infrastructure
Chemicals
Energy
Lifestyle
Innovation & Corporate
Development
6business areas
Providing new value across a broad range of business domains, leveraging ourbusiness engineering capabilities and diverse experience.
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History of Business Development in Peru
6
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History of Mitsui in Peru
7
Milestone
1950’s
~1960’s
1957 Opened representative office in Lima.
1958 Exported iron ore to Japanese steel mills and copper concentrates to Japanese smelters.
1962 Contract for the Comprehensive Development Plan (Hydroelectric plant, irrigation) for Tacna.
1963 Opened Lima Branch office.
Established Industrias Maritimas de Supe (IMASU), Fish meal producer.Exclusively exported copper concentrates of new Condestablemine to Nippon Mining Smelter.
1964 Contract for iron ore export to Japan from Marcona mine.
1965 Toyota del Peru (TDP) was incorporated (Toyota 50%, Mitsui 50%).
1966 Cia. Minera Santa Luisa (Mitsui Mining and Smelting Company 70%, Mitsui 30%) started development of Huanzala zinc-lead mine.Completed construction of Aricota hydropower plant in Tacna with J-Power.
1967 TDP started production at Ventanilla assembly plant.
1968 NEC and Mitsui supplied new Satellite Communication Station to Entel Peru.
1969 Constructed and operated a warehouse of copper concentrates at Callao port.Quimica Sol was established. (Asahi Chemical 75%, Mitsui 20%)
Established IMASU Fish meal plant (1963)
Started development of Huanzala zinc-lead mine (1966)
Toyota assembly plant started production (1967)
Completion of Aricotahydropower plant in Tacna (1966)
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Milestone
1970’s
~1980’s
1970Mitsui del Peru (MDP) was established in Lima.
1971MDP Automotive Div. started Toyota retail business.
1972Constructed and financed copper refinery for Minero Peru in Ilo with Furukawa Electric.Toyo Engineering designed and built the Talara Refinery cracking, fertilizer, etc. units.
1974Provided offtake financing to Petroperu for construction of North-Peruvian pipeline project.
1975MDP Automotive Div. opened the first showroom in Lima.
1976Provided offtake financing to SPCC for new Cuajone copper mine and Ilo smelter expansion.
1980’s: Peru drifted into period of turbulence: Nationalization of the banking, Hyper-inflation,
Terrorism, El Niño, etc
Construction and finance of copper refinery for Minero Peru (SPCC) (1972)
Offtake Finance to construct North Peruvian Pipeline(1974)
History of Mitsui in Peru
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Milestone
1990’s
1992 Installed with NEC the first PDH microwave digital multi-channel network to Telefonica del Peru.
1993 Established Peru Tire Service (PTS).
1994 Established Mitsui Automotriz (MASA).
Provided offtake financing to SPCC for the expansion of SX-EW plant.
1996 Obtained 18% of stock of Dicsa Peru (DIP), Distributor of Komatsu.
1998 Established Mitsui-MASA Leasing (MML) and obtained local license of finance leasing.Provided offtake financing to SPCC for the modernization of Ilo smelter.Participated in concession of Ferrocarril Central Andina(Mitsui 10%)
Participated in concession of Ferrocarril Central Andina(1998)
History of Mitsui in Peru
Invested in Dicsa Peru (1996)
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Milestone
2000’s
2000 Awarded with the order for 447 units of Komatsu construction machines by Gov. of Peru.Purchased 59% of stocks of DIP and changed name to Mitsui Maquinarias Peru (MMP)
2001 PTS opened 1st Passenger tire (PSR) retail store in Trujillo.
2004 MASA started Toyota Forklift distribution & retail business.
2005 Became 100% shareholder of MMP and started new engine & component workshop at Ate.
2006 Cia. Minera Santa Luisa started operation of Pallca zinc-lead mine.MASA started Hino retail business.
2007 MMP opened officially the Training and Demonstration Center.Bridgestone Off The Road Peru (BSORP) was established (Bridgestone 75%, Mitsui 25%).
2009 MAF Chile purchased 100% stocks of MML from MASA.
MMP became Komatsu Mitsui Maquinarias Peru(KMMP) (Mitsui 60%, Komatsu 40%).
MMP opened Training & Demonstration Center (2007)
MASA started Toyota Forklift distribution & retail business(2009)
History of Mitsui in Peru
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Milestone
2010’s
2010 MML obtained local license for credit and became Mitsui Auto Finance Peru (MAFP).
Participated in new Bayovar phosphate rock mine, Compania Minera Miski Mayo (CMM) (Vale 40%, Mosaic 35%, Mitsui 25%).Entered into offtake agreement of bioethanol produced by Maple Biocombustibles.
2012 MASA started Lexus dealership.
Acquired Tacna and Panamericana Solar power plants (42.4MW), through EMIF.
2013 Started human development cooperation program for SENATI.
2014 Delivered Lexus/Toyota hybrid cars to the Peruvian government through Japanese grant aid.
2016 PTS started Bandag retread tire business.
Inauguration of new Bayovarphosphate rock mine (2010)
Acquired Solar Power Plant through EMIF(2013)
History of Mitsui in Peru
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Current Main Businesses Activities in Peru
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Group Companies in Peru (Subsidiaries)
13
Number of Group Companies
9
Number of Employees
approx. 4,000
Komatsu-Mitsui Maquinarias Peru S.A.
Mitsui Automotriz S.A. Mitsui Auto Finance Peru S.A.
Distribuidora CumminsPeru S.A.C.
Novus Peru S.R.L.
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Toyota del Peru S.A. Peru Tire Service S.A.
Compañía Minera Miski Mayo S.A. Bridgestone off the Road Tire Peru S.A.C.
Number of Group Companies
9
Number of Employees
approx. 4,000
Group Companies in Peru (Affiliates)
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Group Companies and Business Activities in Peru
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Name Business Participation Established Employees
Au
tom
otive
Toyota del PeruCar distribution(Toyota, Hino, Daihatsu).
Mitsui:50%Toyota:50%
1965 134
Mitsui AutomotrizCar dealer (Toyota, Hino)Forklift distribution (Toyota, BT)
Mitsui:100% 1994 611
Mitsui Auto Finance Peru Auto finance (Toyota) Mitsui:100% 1998 149
Mach
inery
Komatsu Mitsui Maquinarias Peru
Distribution of mining and construction machinery (Komatsu, Bomag, Hensley)
Mitsui: 60%Komatsu: 32%Cummins: 8%
1996 1,339
Distribuidora Cummins PeruDistribution of engines and generators(Cummins)
KMMP:100% 2011 464
Tires
Peru Tire Service Dealer of mining, truck & bus and passenger tires (Bridgestone, Firestone)
Mitsui:50%Local:50%
1993 140
Bridgestone Off The Road PeruDistribution of mining tire (Bridgestone)
Mitsui:25%Bridgestone:75%
2007 20
Min
e Compañía Minera Miski Mayo Phosphate rock miningMitsui:25% Vale:40%Mosaic :35%
2003 761
Feed Novus Peru Distribution of animal feed ingredients Mitsui:80% 2005 1
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Au
tom
otive
Toyota del Peru
Mitsui Automotriz
Mitsui Auto Finance Peru
Mach
inery
Komatsu Mitsui Maquinarias Peru
Distribuidora Cummins Peru
Tires
Peru Tire Service
Bridgestone Off The Road Peru
Min
e Compañía Minera Miski Mayo
Feed Novus Peru
Group Companies and Business Activities in Peru
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Au
tom
otive
Toyota del Peru
Mitsui Automotriz
Mitsui Auto Finance Peru
Mach
inery
Komatsu Mitsui Maquinarias Peru
Distribuidora Cummins Peru
Tires
Peru Tire Service
Bridgestone Off The Road Peru
Min
e Compañía Minera Miski Mayo
Feed Novus Peru
Group Companies and Business Activities in Peru
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Growing with Partners
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Business Strategic Targets in Peru
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『Business Strategic Targets in Peru』
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Mineral Resources& Material
Copper Mining Development,
Trading of Copper Metal/
Concentrate
Mobility
Automobile, Tire, Mining &
Construction Machinery , Metro
Transportation Business, Logistic
Business, etc.
Food & Agriculture
Feed and Food Derived,
Bio-ethanol,
Packages , etc.
Infrastructure
Power, Gas Distribution,
Railways, Ports,
Water & Sewerage, etc.
Hydrocarbon Chain
Oil/Natural Gas E&P,
Gas Chemical,
LNG, etc.
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Macro External Environment
Growing Economy & Healthy Economic Fundamentals
• Sovereign debt rating is getting higher (equal to Mexico)
• 5.8% of average real GDP growth rate in the last 10 years, notoriously high in South America
Stable & Expanding Business Environment
• Expansion of FTA, Development of regional economic integration (APEC, Pacific Alliance, TPP, etc.)
Population Bonus Supporting the Economy
• Strong expansion of high & middle income group.
• Diffusion of advanced education.• Young population (Mid Age: 27.3 in
2015)
Key Drivers
Secure Natural Resources
Mineral, food, marine, gas,
petroleum, etc.
Oligopolization
Progress of alliance
Emergence of big players
(local + intra region)
Business Expansion in the Region
Reciprocal penetration to
neighbor markets (Pursue for
volume and efficiency)
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『Business Image with Clear Growth Path』
22
Businesses Expanding to
Regional Markets
Growing Sectors &
its Related Businesses
Businesses with Potential to
Become No. 1 or No. 2 in Peru
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Human Resource Development Cooperation in Peru
23
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Branches:83 in nationwide
Students:80,000 approx.
The Biggest and Most Important Institution for
Labor Training
Servicio Nacional de Adiestramiento en Trabajo Industrial
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Heavy Machinery Maintenance Career
Human Development Cooperation Program for SENATI
Auto Mechanic Career
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Human Development Cooperation Program for SENATI
Objective:
Contribute to Peruvian industry and society through the development/education of young
talented people who aim to be technician and
need economical support.
1st Phase: 120 beneficiaries (Year: 2013-2015)
2nd Phase: 150 beneficiaries (Year: 2015-2017)
Target Courses:
Heavy Machinery Maintenance Course Auto Mechanic Course
Participation of Group Companies: Heavy Machinery Business: KMMP
Automobile Business: MASA
Tire Business: PTS
Scholarship total amount:
200 million yens (approx.)
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Start of Discussion with SENATI(08/2012)
Signing of Frame Agreement(03/2013)
Ceremony of Presentation of Mitsui Cooperation Program (05/2013)
1. Beginning of Cooperation
SENATI Awarded Mitsui Cooperation (12/2013)
Ceremony for Mitsui Cooperation Program (07/2014)
Presentation of 5th Group of Scholarship Beneficiaries(03/2015)
2. 1st Phase of Cooperation
Discussion with SENATI to Establish 2nd Phase (09/2015)
Signing of Agreement for 2nd Phase(01/2016)
Selection Interview of 6th Group of Scholarship (04/2016)
3. 2nd Phase of Cooperation
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4. Graduation of 1st Group Beneficiaries
Number of Graduates:53May 2016
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MUCHAS GRACIAS
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