To Our Stakeholders
Greeting from President and CEO
I would like to offer my prayers for all those who lost their lives in the Great East Japan Earthquake that occurred in March, and extend my deepest sympathies to the survivors and their families.
I believe this earthquake and its devastating aftermath are the greatest crisis Japan has experienced since World War II. In order to help Japan to take courageous steps towards overcoming this calamity and moving ahead into the future, we at the Marubeni Group will do our part by fully employing our capabilities as a general trading company to lend all the help and support we can to victim relief efforts and projects to rebuild the affected areas.
I feel that concerns about the serious stagnation of the global economy have gradually abated in light of expectations that the improving economic climate in the U.S. will stimulate conditions in both emerging countries and developed countries. There are still many factors influencing the global economic situation, however, and the future outlook is far from clear. The earthquake and tsunami in Japan has had a profound impact on the Japanese economy. Currently there is growing uncertainty about the economic state of the country, which prior to the disaster had been trending towards recovery. In the short term, a significant economic slowdown seems to be unavoidable.
Turning our gaze to other parts of the world, China and other Asian countries are implementing tighter credit policies, civil unrest continues in the Middle East and North Africa, and in Europe countries are facing the problem of sovereign risk. Meanwhile, the prices of natural resources are rapidly increasing.
In the midst of these circumstances the Marubeni Group launched its 3-year mid-term management plan, SG-12, in 2010. Under this 3-year plan, we aim to build an even stronger Marubeni capable of driving sustainable growth (SG) as a partner that exceeds our stakeholders’ expectations.
In terms of revenue for FY 2010, the first year of SG-12, consolidated net profit was 136.5 billion yen. This figure exceeded both the projection of 125 billion yen made at the beginning of the period, as well as the upwardly revised projection of 135 billion yen made in January 2011. This result represented the second highest level of revenue after the record amount of 147.2 billion yen we achieved in FY 2007. Judging from this result, I believe we have made extremely satisfactory progress.
Under SG-12, we plan to invest 750 billion yen in our most important sectors for three years from FY 2010 through to FY 2012, with the aim of expanding our revenue base to support future sustainable growth.
In FY 2010, our total amount of investment reached 160 billion yen. Our main activities stretch across a number of different areas. In regards to natural resources, we acquired interests in Gulf of Mexico oil and gas fields from a U.S. subsidiary of the major British oil company, BP. We have also been busy in the infrastructure sector, acquiring additional equity in Hsin Tao Power Corporation, purchasing Aguas Nuevas, Chile’s third largest water and sewerage company, as well as acquiring an interest in 8 LNG vessels and entering the shipping business. In the environmental and lifestyle fields, we have invested in the Raleigh Wind Energy Center in Canada and the Malaysian containerboard manufacturer and cardboard producer GS Paper & Packaging (GSPP). We have also entered the aircraft operating lease business. Through these investments we are steadily building a strong track record in our most important business sectors.
Needless to say, as a general trading company none of our activities would be possible if we did not have the trust of our stakeholders. In these uncertain times, the Marubeni Group’s duty remains the same: to fulfill the vital role society has entrusted to us. In return, I hope that we can continue to enjoy the unwavering trust of our stakeholders and maintain sustainable growth.
In closing I would like to express my sincere appreciation for your continued support, and humbly ask that you continue to provide us with your opinions and advice and help make the Marubeni Group even stronger.
July, 2011
Teruo Asada
President and CEO, Member of the board
