Sojitz Corporation

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Infrastructure & Healthcare Division

By combining Sojitz’s unique functions and ideas, the Infrastructure & Healthcare Division provides new solutions to create value. Specific areas of operation include energy, telecommunications, urban infrastructure, and healthcare. Businesses are developed in response to global social issues, including the rising demand for infrastructure and healthcare due to economic growth in emerging countries, climate change, digitalization, and the diversification of values.

Strengths of Division

  • Create: We aim to create new business platforms by leveraging our personnel network and improving our business selection acumen to make full use of our speed and flexibility.
  • Connect: We will collaborate both with existing partners in various industries and emerging markets and with new partners that emerge in the changing business environment in order to combine our unique strengths and enhance our competitiveness.
  • Nurture: We will build deep relationships of trust with all stakeholders across public and private sectors and coexist in harmony with local communities and the natural environment.
  • Expand: We will combine ideas and functions, create new value, and expand our business domains.

 

External Environment

Opportunities

  • Growing demand for infrastructure and healthcare owing to robust economic and population growth in emerging countries
  • Growing demand for green infrastructure due to heightened global concern for climate change
  • Expanding opportunities to provide complex solutions to meet diversifying needs and an increasingly decentralized society
  • Growing opportunities for telecommunications and digital-related businesses in line with the rapid progress of digitization

Risks

  • Changes in supply chains and business structures due to geopolitical risks such as conflicts and changing security frameworks
  • Economic recession and changes in the structure of the economy due to the ongoing COVID-19 pandemic
  • A paradigm shift resulting from changes in regulations and policies related to climate change in countries around the world
  • Country risks associated with slow economic growth in emerging countries and changes in the political, economic, and social environments
  • Changes in the balance of supply and demand due to intensifying competition, and diminished business competitiveness due to new technologies, etc.

Growth Strategy

We will continue to help realize a prosperous and sustainable society by providing sophisticated infrastructure that balances economic growth with lower environmental impact.

Takefumi Nishikawa

Executive Officer, COO
Infrastructure & Healthcare Division

The Infrastructure & Healthcare Division has positioned comprehensive infrastructure businesses and healthcarerelated businesses in Japan and overseas as focus growth areas. Based on these areas, we have adopted the following three growth strategies.

The first strategy is to develop, implement, and monetize businesses with a sense of scale that leverages our strengths. In the energy infrastructure and healthcare domains, where we expect to see growth and stable earnings, we will link the experience and functions we have accumulated thus far in an organic, integrated manner while also concentrating our resources. We thereby aim to build upon and branch out from existing operations in order to build a solid earnings base.

As the second strategy, we will strengthen the profitability and increase the value of existing businesses. We aim to maximize the value of our businesses in terms of both quality and quantity by leveraging our capabilities in financial structuring and other areas, by making investments to obtain functions that can be utilized in a cross-business manner, and by creating and utilizing new value through digital transformation.

For the third strategy, we will expand into new business areas and continue working on areas in which we foresee growth and future potential. In particular, we look to expand into downstream and service fields in existing business areas, and we will pursue growth and the expansion of our business domains by acquiring new business platforms and making additional investments with a market- in approach. Furthermore, as part of our efforts to address climate change and contribute to decarbonization, we will promote businesses related to hydrogen and electric vehicles while tackling business challenges with new ideas that are not restricted to existing business areas.

Through these strategies, the Infrastructure & Healthcare Division will create and expand businesses that contribute to the resolution of social issues as it seeks to fulfill its mission of developing sophisticated social infrastructure that promises reliability, safety, and comfort.

Businesses

Business Map

Integrated urban development project (Indonesia)

Telecommunications tower

■Renewable Energy Businesses

By leveraging the knowledge we have gained through the development and operation of solar, onshore and offshore wind, and biomass power generation projects in Japan and overseas, we aim to further expand our business amid the global shift toward decarbonization. To this end, we will proactively promote business development in growth markets and offer supply services in response to demand for renewable energy from companies that have joined the RE100 initiative as well as from other companies.

■Gas-Fired Power Generation Businesses

In addition to developing and operating high-efficiency gas-fired power plants to meet the demand for the switchover to gas-fired power generation with lower environmental impact, we are also working to provide new added value in the United States, including through energy-saving projects and regional distributed power generation. In addition, we are focusing on the development of an integrated value chain from LNG procurement and receiving to power generation in emerging Asian countries, leveraging the knowledge we’ve gained from developing a Gas-to-Power project in Indonesia.

■Gas-Related Businesses

We are developing natural gas supply businesses in emerging countries and other regions in which we anticipate stable, long-term growth in LNG demand. In addition to promoting a low-carbon society through the supply of natural gas, we will work to achieve decarbonization by optimizing energy usage through the combination of renewable energy and new technologies.

■ICT Infrastructure Businesses (Telecommunications Towers, Data Centers)

We are working on data center and telecommunication tower businesses to support the increasing data traffic brought about by aspects of the new daily reality, such as telework, video streaming, and cloud computing for business applications. In the future, we will also pursue optical fiber and indoor telecommunications infrastructure sharing businesses to contribute to the construction of large-capacity, high-quality, and stable networks.
>Introducing ICT-related Businesses

■Urban Infrastructure and Industrial Park Businesses

We are developing and operating industrial parks in emerging Asian countries. We are providing high-quality utility services and contributing to the sustainable development of local communities by providing eco-friendly, high-value-added services encompassing digital transformations. Also, in Deltamas City in Indonesia, we are engaging in a comprehensive urban development project with ever-growing value that is well positioned for the future. The city integrates residential, commercial, industrial, administrative, educational, and medical facilities.

■Healthcare

With the aim of providing solutions in the medical and healthcare fields that contribute to improving the health and quality of life of people everywhere, we are operating hospital PPP projects in Turkey and Australia in close collaboration with local communities. In Asia and Oceania, we will continue to expand medical services that meet market needs with a focus on primary care and work to promote the introduction of DX in the healthcare sphere.

TOPICS

Energy Conservation Business in the U.S.

In FY2021, Sojitz acquired an 85% stake in McClure Company, an American company. This is Sojitz’s first foray into the energy service field in the U.S.

In the U.S., the world's largest producer of crude oil and natural gas, little attention has been paid to energy efficiency and costs. However, due to global warming countermeasures and geopolitical security issues, there is a growing demand for services to improve energy efficiency in order to reduce CO2 emissions and utility costs, which are on the rise.

Through McClure, one of the largest service firms in Pennsylvania, a state that has one of the largest economies in the U.S., we will develop a business to inspect, retrofit, and maintain lighting and HVAC systems in schools and hospitals to meet the needs of American consumers.

In addition, through this business, we will enhance McClure's services for providing renewable energy, such as solar power generation, to help realize a clean society.

Office Building Development Project in the Philippines

Sojitz is participating in the redevelopment of an office building in Makati City, Philippines, a project run by the House of Investments, Inc. (“HOI”), one of the major flagship corporations of the Yuchengco Group, a major firm in the Philippines.

In addition to the stable execution of this project in the heart of the Philippines, which is experiencing strong economic growth among ASEAN countries, we will pursue and explore further possibilities for collaboration and co-creation in the Philippines with the Yuchengco Group and HOI as our strategic partners.

Renewable Energy-Derived Electricity Retailing and Related Services Business

In 2021, Sojitz acquired a stake in Nexus Energia S.A., a major Spanish electricity and gas retailer. This marks Sojitz’s first participation in an electricity retailing business.

Nexus Energia operates electricity retail businesses in Spain, Portugal, and Mexico, and specializes in providing electricity retailing to government agencies and small and medium-sized businesses. The company is distinguished by the fact that 100% of its electricity sales come from renewable sources.

In addition, Spain and other European countries are environmentally conscious, as evidenced by the European Green Deal policy. These countries are environmentally advanced markets that are leading global decarbonization efforts.

In addition to the electricity retail business, optimization of customer electricity usage, and energy conservation services that Nexus Energia is currently developing, Sojitz will expand electricity service businesses including rooftop solar panels, EVs, EV charging infrastructure, and energy storage systems to meet diversifying customer needs and contribute to the realization of a decarbonized society.

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