Developing well-balanced financial business

In the Financial Markets Business Unit, we serve as a concentrated source of Mitsui's financial expertise, and are pursuing business that takes full advantage of a key characteristic of financial markets-the existence of opportunities to make profits regardless of economic trends. We are seizing new business opportunities accompanying the growth of the financial markets, and aiming to pursue a broad, well-balanced mix of businesses such as: (1) trading; (2) private equity investment (venture capital, and buyout and growth investment funds for developing companies in the growth stage); (3) financial business (credit card and lease business); and (4) asset management business (structuring, management and distribution of various types of funds, including real estate funds and infrastructure funds).

Trading room at MERM

From trading to financial investment and REITs

In trading, we are providing derivative products to minimize price volatility risk for a broad range of customers whose earnings are impacted by changes in prices of raw materials and other commodities. An example is the fuel price hedging schemes for airline companies developed by our London-based subsidiary Mitsui & Co. Energy Risk Management Ltd. (MERM). In private equity, we are focusing through Mitsui Venture Capital on investing in promising venture companies-in areas including IT, biotechnology, and healthcare-that are aiming to list their stock. In buyout and growth investment, we are investing in industries and sectors including media and communications, outsourcing and the restaurant and catering industry. Furthermore, in asset management we have been developing additional avenues for business growth by working with the Transportation Logistics Business Unit to successfully launch a REIT that invests in logistics facilities, collaborating with the Infrastructure Project Business Unit to launch an infrastructure fund, and other such initativies.

Developing financial business attuned to the needs of the times

In the context of the paradigm shift underway in the financial industry, we are also developing financial business aligned to the new era. We are pursuing various initiatives in commodities trading, such as increasing our lineup of products handled, expanding our business in key growth markets such as China, and establishing comprehensive business models from development of new financial products for institutional investors through to sales. Other key companies for our pursuit of new financial business are consumer credit and credit card company Central Finance Co., Ltd., in which we acquired an equity stake in May 2007, and our associated company Mitsui Leasing & Development Ltd.