三菱商事（8058） – [Correction] Midterm Corporate Strategy 2024

[Correction] Midterm Corporate Strategy 2024 Mitsubishi Corporation hereby announces a correction to the “Midterm Corporate Strategy 2024” released in May 10th, 2022 as it was found to contain some information requiring correction, as follows. Please note that the corrected portion is boxed below. June 8, 2022 [Correction] P. 3 Quantitative Targets / Shareholder Returns(Before the correction) (After the correction) The revised “Midterm Corporate Strategy 2024” is posted on our website (https://www.mitsubishicorp.com/jp/en/about/plan/). Midterm Corporate Strategy 2024Creating MC Shared ValueMay 10, 2022Mitsubishi CorporationKatsuya NakanishiPresident and CEOCopyright © 2022 Mitsubishi CorporationDelivering Midterm Corporate Strategy 2024In its Roadmap to a Carbon Neutral Society, announced in October 2021, Mitsubishi Corporation (MC) laid out its goal of achieving net zero greenhouse gas (GHG) emissions by 2050 and also established integrated energy transformation (EX)/digital transformation (DX) initiatives to create a new future as a company-wide theme for business development.Meanwhile, it is becoming increasingly difficult to separate economic activities from ideological clashes between nations, as a result of US-China tensions in recent years. In addition, the international community has been shaken by various kinds of disruptions such as the Russia-Ukraine conflict. Geopolitical risk is rising due to polarization and division in the international community as sensitivities among China, Russia and the US persist. As a result, the Japanese economy is enveloped in an environment of growing uncertainty. The recovery of the global economy is also expected to be accompanied by various uncertainties.Global security tensions are also having an impact on the business environment. Blurring of the boundaries separating industries is increasing as businesses work to address the common issues of supply chain restructuring, digitalization and decarbonization. Moreover, as the pace of technological innovation quickens, these trends will likely yield more uneven, unpredictable change.Amid this business environment, it is necessary for us to adapt to these uncertainties with greater foresight. I believe our mission is to continue to respond to the increasingly diverse and complex needs of society by further strengthening our expertise across industries and intelligence from across the globe. While fulfilling our commitment to provide a stable supply of energy, food, resources and other necessities, we are also being called upon to address societal challenges in areas such as decarbonization and enhancing industry competitiveness. With this in mind, we have selected a set of crucial societal issues as our unique definition of “materiality” that we will strive to solve through our business activities.It is based on these developments that we present our Midterm Corporate Strategy 2024 – Creating MC Shared Value. The inspiration for Creating MC Shared Value is rooted in a vision of continuously creating significant shared value by elevating the MC Group’s collective capabilities in order to address societal challenges.We will endeavor to bolster the capabilities that come from fostering organic connections across MC’s core strengths, namely industry expertise and insight, gained through our extensive experience in trade and business management; global intelligence, collected in a timely manner through our unique worldwide network of offices and group companies; business portfolio transformation in response to a changing business environment; financial soundness, rooted in fiscal discipline; and most of all, a diverse and versatile talent pool, comprised of highly-motivated professionals who are driven to pursue business innovation. In other words, we will seek to further strengthen our collective capabilities. We will mobilize our foresight and execution skills across areas and industries by fully drawing on these collective capabilities, thereby creating overall value that is greater than the sum (∑) of its parts.Amid turbulent times, we always return to the spirit of our all-encompassing Three Corporate Principles andI would like us to continue to be an enterprise that steadily grows in step with society.We will achieve this by furthering the company’s growth in lockstep with the growth of our employees,while striving to address societal and industry challenges.Katsuya NakanishiMay 10, 2022Copyright © 2022 Mitsubishi CorporationOur Goals Under Midterm Corporate Strategy 2024: Creating MCSVWhat Is MCSV?The continuous creation of significant shared value by elevating MC Group’s collective capabilities in order to address societal challenges.MC’s Unique Collective CapabilitiesCreating MC Shared ValueDecarbonization Sustainable Societies/Lifestyles Societal Challenges Innovation Growing Together with Regional Communities ・・・Copyright © 2022 Mitsubishi Corporation1Outline of Midterm Corporate Strategy 2024Our Goals Under Midterm Corporate Strategy 2024Fostering and Leveraging Connections toMaximize the MC Group’s Unique Collective CapabilitiesCreating MC Shared Value Quantitative Targets / Shareholder Returns • Steady growth of earnings independent of market factors. Shareholder returns through progressive dividends and flexible company share buybacks. • Cash flow management rooted in financial discipline and investment planning/business portfolio management focused on future growth.Leading Transformations and Connecting to GrowthGrowth Strategies EX Strategy (Decarbonization Solution Provider) DX Strategy (Linking Digital Technologies with the Real World) Creating a New Future (Fostering New Industries/Regional Revitalization)Connecting Our Business to the Future with Disciplined GrowthBusiness Management Business Management SystemsConnecting Diverse Sources of IntelligenceCreating a Vibrant Organization by Interconnecting a Versatile and Diverse Talent PoolInterconnecting with DiverseStakeholders and Reinforcing Our Presence as a Trusted Member of SocietyManagement Mechanisms Organization Maximizing Our Collective Capabilities Through Cross-Organizational Initiatives Management Mechanisms for Maximizing Our Collective CapabilitiesHR Policies Policies for Maximizing the Value of Human Capital SustainabilityPolicies Materiality Initiatives Related to MC’s Roadmap to a Carbon Neutral SocietyCopyright © 2022 Mitsubishi Corporation2Quantitative Targets / Shareholder ReturnsQuantitative Targets /Shareholder Returns Quantitative Targets Steady Growth of Earnings Independent of Market FactorsConsolidated Net Income(Billion Yen) Financial Outlook850.0 Billion Yen90.0 Billion Yen800.0 Billion Yen60.0 Billion YenExisting ProjectsValue-Added Cyclical GrowthProspective Projects/New Investments650.0Billion Yen*After adjustment based on market price assumptions for FY2024.Capture Upside PotentialStrengthen Downside Resilience*Primary Market Factors Mineral Resources Group(Metallurgical Coal, Copper and Iron Ore) Natural Gas Group (Crude Oil, Gas and LNG) 535.4 172.6 937.5FY2019 FY2020 FY2021 FY2022FY2024ROE9.8％3.2％15.0％Double-Digit ROE Shareholder ReturnsBalanced Policy of Financial Soundness, Stable Dividend Growth andMarket Expectations on Shareholder ReturnsDividend per Share (Yen)Share Buybacks70.0 Billion YenProgressive Dividend Scheme That Provides Increased Dividends in Response to Sustainable Earnings Growth132134150FY2019 FY2020 FY2021 150FY2022 Progressive DividendFY2024 Target Total Payout Ratio of Around 30%-40%Share Buybacks Conducted in a Flexible, Financially-Disciplined MannerCopyright © 2022 Mitsubishi Corporation3Cash Flow (CF) / Capital AllocationQuantitative Targets /Shareholder Returns In order to increase enterprise value, we will strategically allocate CF into investments and shareholder returns, while maintaining financial discipline. We will also seek to lower our cost of capital by enhancing stakeholder confidence in our business operations through expanded disclosure and dialogues.Maintain Financial Discipline(High Single-A Credit Rating) Cash In(Approx. 4.5 Trillion Yen over 3 Years)Cash Out(Approx. 4.5 Trillion Yen over 3 Years)Approx. 1 Trillion Yen AnnuallySteady Generation of CashUnderlying Operating CF3 Trillion YenInvestments3 Trillion YenIncreasing Enterprise ValueAccelerate Value-Added Cyclical GrowthCurtail Low-Growth/Low-Yield OperationsCF from Divestments1.5 Trillion YenShareholder Returns More Than 700 Billion YenMaintaining/Expanding Our Earnings BaseInvesting in EX Initiatives Investing in DX/Growth InitiativesInvestment/Shareholder Returns(Allocated in Accordance with CF Fluctuations)Copyright © 2022 Mitsubishi Corporation4Investment Plan / Business Portfolio Quantitative Targets /Shareholder Returns Investment of 3 trillion yen is planned during this midterm strategy; EX-related investments are to be accelerated. At the same time, we will steadily promote investment in maintaining/expanding our earnings base and in DX/growth-related investment areas. Major Investment Targets of Midterm Corporate Strategy 2024FY2030Investment Plan (FY2022-FY2024)Area Scale of Investment Maintain/Expand Earnings Base Approx. 1 Trillion Yen Metallurgical Coal FoodAutomobiles, etc.CopperNatural Gas EX-related Approx. 1.2 Trillion Yen Renewable Energy Battery Materials/Bauxite, etc.Next-Generation Energy (Hydrogen/Ammonia/Biomass, etc.) Digital InfrastructureUrban ManagementDX/Growth-relatedInvestmentApprox. 0.8 Trillion Yen Supply Chain OptimizationUrban Development, etc.Business PortfolioFY2021FY2024Balance of InvestmentMaintain/Expand Earnings BaseEX-relatedDX/Growth-related CF will be allocated to EX/DX and growth investments to support future growth. Acceleration of EX Investment• MC’s Roadmap to a Carbon Neutral Society includes plans for 2 trillion yen of investment in EX-related initiatives by FY2030. • By accelerating EX-related investment, we will reinforce our business portfolio. We will also endeavor to simultaneously deliver decarbonization and a stable energy supply. Expand ratio of EX-related business portfolio from 30% to around 40% (end of FY2021~2024). Increase ratio to around 50% in the future.Copyright © 2022 Mitsubishi Corporation51Leading Transformations and Connecting to GrowthCopyright © 2022 Mitsubishi CorporationEX Strategy Materials and Products.• Promote low/zero carbon initiatives across the energy sector by connecting seeds (solutions) with needs related to EX Resources,• Provide solutions as EX Services while working closely with industry, consumers and regions to address emission reduction needs.Growth StrategiesTake on the challenge of providing stable supplies of energy and resources while simultaneously supporting decarbonization efforts of society and business. Efforts to enhance renewable energy businesses, mineral resources that underpin Electrification, and low/zero carbon energy. Expand service-providing businesses by offering EX solutions in response to customer needs. Leverage MC’s far-reaching operations to appeal to consumers/regional communities by connecting seeds and needs. Join with partners to support the transition to a carbon neutral society and improvements in industry competitiveness, while maintaining a holistic view of the EX value chain. Aim to Become a Decarbonization Solution ProviderUpstream Midstream Downstream Access to Seeds Limited by Scarcity/RegionGrasp the Needs of Diverse Industries/ClientsEX Resources Renewable Energy, Green HydrogenCopper, Lithium, Nickel Natural Gas, Blue Hydrogen/AmmoniaCarbon Credits (Development) EX MaterialsGreen SteelCarbon Neutral Materials for Construction/Other UsesEX Products Next-Generation FuelsCarbon Neutral Products(PET Bottles, Textiles, etc.)Carbon Credits (Supply) EX Services“Climate Journey Navigator,” Decarbonization Consulting, Energy ManagementAssessments Target Setting Carbon Offsets Emission ReductionsStakeholder Engagement Consumers Regional CommunitiesInnovation Supporting the Deployment of New TechnologiesCompetitiveness/Development CapabilitiesPartners/Industry ExpertiseBranding/MarketingCompany-Wide Development/Implementation Strategies by the EX Task ForceCopyright © 2022 Mitsubishi Corporation7DX Strategy Growth Strategies• Broadly deploy MC’s DX Capabilities across business operations in order to promote value enhancement through DX initiatives, • Address societal challenges by linking digital technologies with the real world, thereby contributing to the development of industry targeting diverse, real-world businesses.and a future society with vibrant communities. Build cross-industry digital ecosystems with optimized business models.Accelerate the development & provision of cross-industry DX Capabilitiesthat leverage business knowledge.Contribute to enhancing the value of entire industries by offering DX Capabilities as a service.Contribute to the creation of vibrant regional communities by providing new businesses and optimal services.Raise productivity throughout society by interconnecting industry, business and communities, thereby contributing to the creation of sustainable value. Support Improvements in Productivity by Developing/Offering DX CapabilitiesReal-World SolutionsDX CapabilitiesLNG Production Process Optimization Through AIProduction/Logistics Optimization Through Visualization of Complex Material Supply ChainsService Station User and Auto Maintenance Operation Data ConnectionOptimization of Mining Operations with Autonomous TrucksVisualization of Data on AC/Lighting/Flow of People to Conserve EnergyOptimization of Regional Traffic Services Linked with Location DataOptimization of Production/Processing/Sales of Food Products Through Enhanced Demand ProjectionsReduction of Missed Sales and Food Waste Through Food Distribution Network Data ConnectionRefinement of Power Supply-Demand Adjustment Functions to Supplement Intermittent Renewable Energy Formulation and Enhancement of Digital Data Platforms in CitiesAIIoTBlockchain Production Planning OptimizationLogistics OptimizationOperations OptimizationAutomation/Autonomous/Remote OperationInventory OptimizationSmart ContractsSupply-Demand ForecastsPrice Forecasts Customer Data Analytics… PlatformBusiness DevelopmentRoll Out of DX as a ServiceNew Business DevelopmentFormation of the “Industry DX Group” to Promote DX StrategiesCopyright © 2022 Mitsubishi Corporation8Creating a New Future (Fostering New Industries/Regional Revitalization)Growth StrategiesWork with partners and local municipalities to address challenges facing society and industry on the themes of (1) utilizing renewable energy and other local energy resources; (2) creating new “Carbon Neutral (CN)” industries; and(3) developing vibrant communities by helping to resolve regional issues.Issues for Regional Industries:Decarbonization, Increasing Self-Sufficiency, New Industry Creation, etc.Utilize Natural Energy (Local Resources) IncludingWind (Offshore/Onshore), Hydro, Solar, Geothermal, etc.1Utilizing Local Energy ResourcesRenewable Energy Green Hydrogen Green Electricity Clean Heating Clean MaterialsNext-Generation Fuels CN Boilers/CN Heat Supply, etc. CN Construction Materials/CN Materials CN Automobiles/CN Fuels, etc. Clean Products CN PET Bottles/CN Textiles, etc.Regional Circular Economies Rooted in “Local Production for Local Consumption”Utilizing Integrated EX/DX Initiatives to Promote Regional RevitalizationIssues for Regional Communities:Fortifying Existing Industries, Securing Labor, Aging Demographics Policies, etc.Infrastructure Investment HR Development in Construction,Operations and MaintenanceRegional Infrastructure Increased Employment 人が集うCollaborative コミュニティCommunitiesUtilitiesDistributed Power (Renewable Energy)/Energy Management (Energy Storage)Increased Working Population Mobility/InfrastructureOn-Demand Transportation/EVs & Charging Infrastructure/Energy StorageFurther Job Creation/Workforce Expansion Increase in Regional GDP 2Creation of New CN Industries Green Brands(“A Leading CN City”) Regional Economy Disaster ResilienceRenewable Energy×Energy Storage (Local Production, Local Consumption)/Increased Energy Self-SufficiencyLocal Municipalities/AdministrationCollaborateRegional Data PlatformsDigitization of Administration ServicesCollaborating with Local Municipalities/Urban Operating Systems自治体との連携／都市OSBuilding Regional BrandRegional Agricultural/Fishery ProductsBranding/MarketingCommercial Facilities DevelopmentPromotion of TourismInbound Visitors/Tourism ResourcesPromotion of Sports/CultureExpand to Other Areas3Creating Vibrant CommunitiesNext-Generation Community Development That Realizes “Local Revitalization via Creating Local Industries”Community LifeDaily Life & Health Childcare Support Education Remote Medical & Health Care Services for Safety/Security Creation of New CN Industries Catalyzed by Renewable EnergySelf-Sustained Decentralized Communities That Are Convenient and VibrantCopyright © 2022 Mitsubishi Corporation92Connecting Our Business to the Future with Disciplined GrowthCopyright © 2022 Mitsubishi CorporationBusiness Management Systems Business ManagementEstablish management mechanisms to promote self-initiated strengthening of Business Group management with a view to achieving quantitative targets.Net Income/CFMaintain/Improve Capital Efficiency Ensuring Financial Soundness Consolidated Net Income (FY2024) 800.0Billion YenUnderlying Operating CF Approx. 1 Trillion Yen per Year Double-Digit ROE Maintain High Single-A Credit RatingPost-Returns Free Cash Flow > 0(Over Midterm Strategy’s 3-Year Period)Group Net Income/CFGroup ROE • Strengthen monitoring of Business Group net income that is independent of market factors in an environment where we experience significant commodity price fluctuations. • Expand monitoring of underlying operating CF for each Business Group. • Achieve company-wide ROE targets by linking ROE and the investment/asset replacement plans of Business Groups.Achieve improvements in mid- and long-term yields by securing capital gains and replacing low-yield businesses.Asset Replacement Plans • Promote Value-Added Cyclical Growth by assigning asset replacement targets to the Business Groups.CF Management System• Use cash generated by the Business Groups to provide stable shareholder returns and drive business portfolio transformation. • Build a system through which the Business Groups can independently carry out investment and asset replacement. FY2022 FY2023FY2024Progress Review MeetingProgress Review MeetingProgress Review MeetingPromote Improvements in Capital Efficiency Through Monitoring of Business Group ROE/Asset Replacement PlansCopyright © 2022 Mitsubishi Corporation11Quantitative Targets Policies SystemOperationBusiness Management System: Value-Added Cyclical Growth ModelBusiness ManagementRespond to changes in the business environment by accelerating the application of the Value-Added Cyclical Growth Model and redirecting managerial resources to New Seeds of Growth and Growth Drivers.Value-Added Cyclical Growth ModelGrowth Potential Increase ValueHigh Growth 成長の柱DriversCore BusinessesStrengthen/ExpandIncubateRe-Investment of Managerial ResourcesLow New Seeds 成長の芽of Growth Transition to Self-Sustaining BusinessesReplace/DivestReallocate Resources tseviDot gnmTii lamitpO yfitnedICopyright © 2022 Mitsubishi Corporation12Low HighEarnings Potential 3Connecting Diverse Sources of IntelligenceCopyright © 2022 Mitsubishi Corporation14OrganizationManagement Mechanisms• Establish the Industry DX Group. Increase momentum in the DX area through coordination among Business Groups,• Establish the Global Intelligence (GI) Committee as a subcommittee under the Executive Committee. Strengthen capacity to respondMC offices/subsidiaries and the EX Task Force.to rapidly-changing external environment.President & CEO Executive Committee Internal Audit Dept. Corporate Strategy & Planning Dept. Industry DX GroupEX Task Force Committees Investment Committee Human Resources Development Committee Digital Strategy CommitteeCompliance Committee Sustainability & CSR Committee Disclosure Committee GI Committee Corporate Staff Section IT Service, Corporate Communications, Global Human Resources, Corporate Sustainability & CSR, Corporate Administration, LegalGlobal Strategy & Coordination, Global Intelligence & Research, Global Risk & Insurance ManagementBusiness Investment Management,Corporate Accounting, Finance, Structured Finance, M&A Advisory, Investor RelationsGlobal Network Offices in Japan Overseas Offices/Subsidiaries Business Groups Natural Gas Industrial MaterialsPetroleum & Chemicals Solution Mineral Resources Industrial Infrastructure Automotive & Mobility Food Industry Consumer Industry Power Solution Urban Development Copyright © 2022 Mitsubishi Corporation14Optimizing Collective Capabilities ThroughCross-OrganizationalInitiativesManagement MechanismsBolster capacity for utilizing global intelligence to make timely responses and promote cross-industry initiatives to meet the challenges of a macro environment marked by geopolitical and other uncertainties, and a business environment subject to significant changesacross industries. Natural Gas Industrial MaterialsPetroleum & Chemicals Solution Mineral Resources Industrial Infrastructure Automotive & Mobility Food Industry Consumer Industry Power Solution Urban Development Industry DXGroup Broad Engagement with Wide-Ranging IndustriesSocietal issuesLow/Zero Carbon InitiativesSupply Chain OptimizationRegional Community RevitalizationCircular EconomiesNew Technologies/Innovation…Group’s Momentum StrengthenEachBusiness Renewable Energy, Hydrogen, Next-Generation Fuels, Copper, Natural Gas, Energy Management…AI, Demand Forecasting, Location Data, Logistics Streamlining, Financial Settlements…MaaS*, Decentralized Power, Urban Operating Systems, Smart Buildings, Fintech, Digital Marketing… Carbon Neutral Materials for Construction/Other Uses, Battery Materials…Storage Batteries VPP**/Reuse Blockchain Energy Storage, Carbon Separation and Capture, Green Materials…Cross-Industry Coordination*Mobility as a Service (MaaS)**Virtual Power Plant (VPP): Energy supply services that function like power plants by controlling/managing multiple power sources, such as dispersed renewable energy assets. Global Intelligence via MC’s Worldwide NetworkCopyright © 2022 Mitsubishi Corporation15Management Framework for OptimizingCollective CapabilitiesManagement MechanismsAddress challenge of unpredictable changes occurring across industries by promoting cross-industry strategies on a company-wide basis through the MC Shared Value (MCSV) Forum while also incorporating input from the GI Committee.A Company-Wide Management Meeting Focused on Value OptimizationThrough Business Group Strengthening/Inter-Group CoordinationManagement Strategy MeetingDiscussion of Key Issues Related to the Business PortfolioBusiness Strategy CommitteeDiscussion of Business Group Strategies(Confirming Investment/HR Plans) MCSV ForumDiscussion and Development of Cross-Industry and Company-Wide Strategies EX/DX, Inter-Group Business Creation, Targeting New Technologies/Growth Areas Discussion of Changes in Economic Climate and Other Themes to Be Swiftly Addressed on a Company-Wide Basis Intelligence That Supports Company-Wide ManagementConsolidated Global Network Strengthening a Multi-Way Network That Organically Links the Head Office, Overseas Offices/Subsidiaries and MC Group Companies Bolstering Presence as Local Insider (Fostering “Regional Experts,” etc.)GI CommitteeEnhancing Timely Integration of Global Intelligence into Corporate Management Analysis of Geopolitics, Economic Conditions, Policy Trends, Partner Strategies, Low/Zero Carbon, Technology/Innovation, etc. Analysis of Scenarios Impacting Our Business PortfolioCopyright © 2022 Mitsubishi Corporation164Creating a Vibrant Organization by Interconnecting a Versatile and Diverse Talent PoolCopyright © 2022 Mitsubishi CorporationOptimizing the Value of Human CapitalHR Policies• Enable motivated professionals who take pride in actively fulfilling their responsibilities with a view toward creating MC Shared Value, while interconnecting with members of our diverse and versatile talent pool.• Strive to optimize the value of our human capital by creating such a dynamic, spirited and vibrant organization.HR Strategy Strategic HR Assignments/Appointments• Promote the placement of the right people in the right positions, with all employees demonstrating their capabilities in line with management strategies.Strengthen Adaptability to Changes in the Business Environment• Re-skill to increase adaptability to change and strengthen DX capabilities.• Promote regional experts. Foster a Corporate Culture That Capitalizes on Diversity• Cultivate ties through lively communication that spans group companies and 多様性を活かす企業風土づくorganizations.り• Promote diversity, equity & inclusion, and well-being.Strengthen EngagementCreate a Vibrant OrganizationTalent Management That Leverages Individuality• Expand policies that promote career autonomy such as open placements and multiple internal assignments.DataUtilizationExpand Effectiveness Evaluations and Disclosure• Strengthen effectiveness evaluations and disclosure through collection, analysis and surveying of human capital-related data. Copyright © 2022 Mitsubishi Corporation185Interconnecting with Diverse Stakeholders and Reinforcing Our Presence as a Trusted Member of Society Copyright © 2022 Mitsubishi Corporation20MaterialitySustainability PoliciesCreating MCSV by selecting a set of crucial societal issues as our unique definition of “materiality” that we will prioritize through our business activities. Issues Overview Contributing to Decarbonized SocietiesContribute to the realization of decarbonized societies by striving to reduce greenhouse gas (GHG) emissions, while providing products and services that support decarbonization during the transition period. Conserving and Effectively Utilizing Natural CapitalRecognizing the Earth itself to be our most important stakeholder, strive to maintain biodiversity and conserve natural capital, and work to create circular economies while reducing our environmental footprint. Promoting Stable, Sustainable Societies and Lifestyles Promote sustainable societies and lifestyles of the future through businesses in a diverse range of countries and industries, while fulfilling our responsibility to provide a stable supply of resources, raw materials, products, services, etc., in line with the needs of countries and customers.Utilizing Innovation to Addressing Societal NeedsCreate businesses that help to address societal needs while working to spur major industry reforms that are supported by business innovation.Addressing Regional Issues and Growing Together with Local CommunitiesStrive to contribute to the development of economies and societies by addressing issues facing countries and regions, while seeking to grow together and collaborate with diverse stakeholders, regions and communities.Respecting Human Rights in Our Business OperationsRespect the human rights of all stakeholders involved in promoting our diverse operations worldwide, and pursue solutions for value chain-related issues, while considering the local conditions in each country. Fostering Vibrant Workplaces That Maximize the Potential of a Diverse WorkforceRecognizing that our human resources are the great assets of our businesses, foster a diverse and versatile talent pool that drives efforts to generate triple-value growth throughout our organization, and also seek to develop an organization where diverse human resources share common values and grow together while furthering their connections and inspiring one another to excel. Realizing a Highly Transparent and Flexible OrganizationWhile swiftly responding to changes in the business environment, strive to realize effective governance on a global, consolidated basis and maintain/strengthen a sound organization that is transparent and flexible. Realiizng aCarbonNeu tral iSocety and Sitrivng toEnrichSoce ity Bot hMaterially and Spiritually Tripe-llVaue Growh*tlPatform for Generating Sitrivng to Serve as a *Triple-value growth: the simultaneous generation of economic value, societal value, and environmental valueCopyright © 2022 Mitsubishi Corporation20Initiatives Related to MC’s “Roadmap to a Carbon Neutral Society” Sustainability PoliciesAdopt and promote mechanisms for simultaneously decarbonizing and reinforcing our portfolio by classifying each business based on climate-related transition risks and opportunities as part of our efforts to achieve the GHG reduction targets formulated last October in MC’s Roadmap to a Carbon Neutral Society (halve by FY2030 and net zero by 2050).MC Climate TaxonomyMechanisms Guiding EffortsClassify businesses that face significant climate-related transition risks/opportunities as either “Green” or “Transform.”●●1.5℃ Scenario Analysis Conduct an analysis of transition risks and opportunities based on 1.5℃ scenario.GreenTransformWhite (Other) Renewable Energy Green Hydrogen …Natural Gas Metallurgical Coal …Food Logistics Urban Development …●Transform DiscussionMonitor the effects of transition risks on businesses at the management level every year, targeting those classified as Transform businesses, which are selected based on criteria such as the amount of Category 11* emissions, which account for the majority of MC’s Scope 3 emissions. ●●Investment Planning in Accordance with GHG Reduction PlansAdopt a new process of confirming short- and mid-term GHG reduction plans when formulating investment plans. ●●Evaluation of New Investment Using Assumptions Under Decarbonization ScenarioRefer to profit margin indexes (internal carbon pricing, etc.) using key assumptions under decarbonization scenario.Copyright © 2022 Mitsubishi Corporation21* Scope 3 Category 11: GHG emissions from the use of sold productsFulfill our mission of simultaneously generating economic value, societal value, and environmental value through our business activities as we respond to the needs of all our stakeholders, while continuously returning to the Three Corporate Principles, which have guided MC’s corporate philosophy since its founding.Corporate Responsibility to Society“Shoki Hoko”Integrity and Fairness“Shoji Komei”Global Understanding Through Business“Ritsugyo Boeki”Strive to enrich society, both materially and spiritually, while contributing towards the preservation of the global environment.Maintain principles of transparency and openness, conducting business with integrity and fairness.Expand business, based on an all-encompassing global perspective.Copyright © 2022 Mitsubishi Corporation22•This release contains forward-looking statements about Mitsubishi Corporation’s future plans, strategies, beliefs and performance that are not historical facts. Such statements are based on the company’s assumptions and beliefs in light of competitive, financial and economic data currently available and are subject to a number of risks, uncertainties and assumptions that, without limitation, relate to world economic conditions, exchange rates and commodity prices.• Accordingly, Mitsubishi Corporation wishes to caution readers that actual results may differ materially from those projected in this release and that Mitsubishi Corporation bears no responsibility for any negative impact caused by the use of this release.(Forward-Looking Statements)• Consolidated net income in this presentation shows the amount of net income attributable to owners of the Parent, excluding non-controlling interests.(Notes Regarding These Presentation Materials)23