Strengths of the Division

External Environment

Growth Strategy

The COVID-19 pandemic shows no sign of subsiding, and the outlook remains opaque as a result. Nevertheless, we are witnessing recovery in previously depressed consumption levels. At the same time, there have been substantial changes in lifestyles and consumption trends, which can be viewed as representing an important turning point that shows consumers’ tastes and needs are becoming more diverse than ever before.

The Retail & Consumer Service Division has continued to develop a diverse range of operations aimed at enriching and bringing convenience to people’s lives with a focus on customerbased businesses in the consumer market. Advancing further in this regard, we will look to grow market-oriented service businesses in order to accommodate diversifying consumer tastes and needs and address changes in industry structures.

In the year ending March 31, 2023, we anticipate a phased recovery in domestic consumer demand from the impacts of the COVID-19 pandemic coupled with earnings growth in ASEAN retail businesses. A major pillar of the Retail & Consumer Service Division’s growth strategies in this year will be the expansion of operations and the augmentation of functions in the ASEAN region, which is expected to continue experiencing economic growth going forward. Moreover, the division will reform existing business models and strengthen and grow earnings foundations through the construction of new business platforms in Vietnam, India, and other emerging markets.

Moreover, Marine Foods, a marine food product processing company acquired in the year ended March 31, 2022, will pursue the reinforcement and expansion of its overseas operations by combining its customer base and product development and processing functions with Sojitz’s global network. We will also look to strengthen businesses in the domestic retail field through Marine Foods.

Businesses

Business Map

■Retail Businesses

We are developing retail businesses that meet the needs of ASEAN countries based on their stage of development. Our focus is on developing four businesses in Vietnam: processing and production of prepared food, four-temperature controlled logistics (ambient temperature, fixed temperature, chilled, and frozen), wholesale food and consumer goods, and retail (convenience stores). In addition, through the capital and business tie-up formed with Royal Holdings in February 2021, we aim to develop a more diverse and broader range of businesses catering to consumers in Japan and overseas.

■Shopping Center Management Business

Sojitz Commerce Development Corporation, as the core of the shopping center management business, has continued to utilize its solid track record in operating and improving the value of shopping centers since its founding in 2001. Going forward, we will work to help invigorate local communities by utilizing digital technologies to energize the shopping centers that function as a central component of communities.

■Food Distribution Businesses

Sojitz acquired all shares of marine food processing company The Marine Foods Corporation in March 2022 and then invested in Tastable Co., Ltd., a company that develops, designs, and sells NIKUVEGE plant-based meat, in June 2022.

In this business, we supply consumers around the world with safe foods by calling upon the expertise of numerous Sojitz Group companies. These companies include Sojitz Foods Corporation, which boasts the leading domestic share of frozen beef imports from North America; Sojitz Tuna Farm Takashima Co., Ltd., a tuna farming company; and Meat One Corporation, a marketing company that merges the expertise and functions of multiple companies involved in the procurement, sales, processing, and distribution of meat products.

■Domestic Real Estate

As part of its ownership and development of residential housing, office buildings, hotels, and other real estate, Sojitz has created a value chain encompassing asset management and operation of these assets, and thereby has fostered a balanced earnings foundation. In March 2022, an agreement was reached with Goldman Sachs to establish a new joint venture company for developing operations for adding value to rental housing. As a major player in Japan’s rental residential housing market, we aim to provide more comfortable living environments while also offering a wide range of investing opportunities.