Aerospace & IT Business Division – Main Businesses & Vision –
The aerospace business serves as the sales representative for commercial aircraft and military aircraft and related equipment. The marine business handles various types of ships including newbuilding and second-hand ships, as well as ship equipment. Other operations include the IT business, which provides a variety of information technology solutions.
|▶||Commercial aircraft sales representative for The Boeing Company, Bombardier Inc., etc.; military aircraft and related equipment agency and sales; business jets|
|▶||Newbuilding, second-hand ships, ship chartering, ship equipment sales; ship owning|
|▶||IT solutions and service; data centers|
Marine and Aerospace
|・||Securing the top Japanese market share in commercial aircraft distribution as sales representative for companies such as Boeing and Bombardier.|
|●||[Major Business Activities] Aircraft Sales|
|●||[Major Business Activities] Business Jet Operations|
|・||Marine vehicle business with over 40 years of history, boasting comprehensive functions through synergy with Sojitz Marine Engineering, a fully owned Group subsidiary.|
|●||[Major Business Activities] Ship-Owning Business|
|・||The Ishikari Data Center of Sakura Internet Inc., a Sojitz Group affiliate (Sojitz: 28.1% ownership), is one of the largest in Japan.|
|●||[Major Business Activities] Internet Data Center Business|
|●||[Major Business Activities] Telecommunications Carrier Data Center Solutions Business|
Business Overview and Vision
Creating value by building social infrastructure that supports the flow of people, goods and information
- ▶ In the aerospace business, we have a strong record of success as the sales representative for commercial and military aircraft and related equipment. We also operate a wide range of aircraft-related businesses, including the business jet and part-out businesses.
- ▶ In the marine business, we have established an industry-leading position through our long experience in newbuilding and second-hand ships, primarily bulk carriers, and in supplying marine equipment to major domestic and overseas shipyards.
- ▶ The IT business is focused on building network infrastructure for major domestic telecommunications carriers and on operating data centers.
Strategies and Initiatives
The flow of people and goods is expected to increase in the future, centered on Asia. However, aircraft demand is exposed to event risks such as disasters, and the shipping market has shown weakness in recent years. In order to build a stable earnings foundation, we must expand and enhance businesses that are resilient to market fluctuations. At the same time, we must also establish a business portfolio that is resistant to demand fluctuations, based on factors including the differences between market cycles in the aircraft and shipping businesses, as well as the opposing trends in new and used aircraft depending on economic conditions.
Within this context, we will focus our efforts in six business segments outlined in our Medium-term Management Plan 2017: (1) Commercial aircraft sales representative business, (2) Aircraft leasing business, (3) Used aircraft and part-out business, (4) Business jet business, (5) Military-related business, and (6) Airport operating business. We will combine our capabilities with those of other Sojitz divisions to build these segments into stronger business clusters. In the IT field, in addition to providing ICT solutions, we will also incorporate the added value of IT in our existing businesses, as in the telematics and intelligent transportation system businesses, to make them strong.
Going forward, we are aiming for a stronger earnings foundation as we actively make new investments and loans while working to accelerate businesses in each of the segments mentioned above.
We intend to build a portfolio of investments in businesses that provide relatively short-term capital recovery, such as the used aircraft and part-out business; businesses with mid-term capital recovery, such as leasing; and businesses that can be expected to provide long-term returns, such as the airport operating business.
Aerospace has continued to be our banner business as it has maintained the number-one spot in the industry for many years. The marine and IT businesses, however, are similarly strong and have long histories of their own. We are working to evolve our structure into one that consistently generates new value through synergies with other divisions and departments.
Aerospace & IT Business Division personnel possess the knowledge and capabilities to make this happen. We intend to continue to develop our people to further enhance their skills and become an organization with unshakable strength that creates and provides diverse value to customers and society as a representative Sojitz division.
Focus Area: Part-Out Business
A business model that completes the value chain of the aircraft business
In the part-out business, we purchase retired and aged aircraft, and work with external partners to dismantle and sell the disassembled parts in the aircraft aftermarket. This business model provides an exit strategy that completes the value chain of the aircraft business, which begins with ordering the aircraft and continues through financing, leasing, operation and maintenance to remarketing. In operating this business, partnering with parts distributors is essential. Our division has built relationships with valuable partners through our extensive knowledge and networks in every stage of the remarketing business related to retired aircraft.
Focus Area: Airport Operating Business
Moving into a new business area by bringing together our expertise and resources in airportrelated businesses
In the airport operating business, one of our focus areas, we are working on concrete projects for entering and structuring businesses in airport operation. We are considering setting up businesses in Asia, which has a large population and growing markets, and shows signs of accelerating privatization. We are working to create a cluster of new revenue-generating businesses by expanding in diverse areas. For example, we will expand non-aeronautical revenue in commercial and other spaces inside airports, build various monitoring and management systems incorporating ICT, operate duty free stores, develop a peripheral real estate business and operate hotel tourism businesses.
|▶||Increasing global aerospace demand and growing inbound demand ahead of the 2020 Tokyo Olympics and Paralympics|
|▶||Increasing transaction volume for ships and related equipment due to rising demand for energy-efficient ships and LNG carriers|
|▶||Rapid growth in the Internet of Things market|
|▶||Decreasing aircraft demand due to a declining population in Japan|
|▶||Decreasing transaction volume due to deterioration of the shipbuilding industry in Japan|
|▶||Decreasing competitiveness with acceleration of the IT revolution (Shortening of product and service lifecycles)|
- Transportation Equipment
- Machinery and Machinery Components
- IT and Telecommunications
- Mineral Resources
- Chemicals and Chemical Resources
- Plastic Resins
- Agricultural and Food Products
- Pulp and Paper, Lumber, and Building Materials
- Construction / Real estate
- Consumer Goods and Textiles