Chairman’s 2009 Report
The financial year ending March 31, 2009 saw profound changes in our business
environment. In this period we saw the fallout from the subprime mortgage
worsen, leading to the global financial crisis, which has now resulted in a deep
downturn in the real economy across the globe.
Mitsui Australia is not immune from the sharp decline in the global economy. In the
second half of the period, our financial results declined unavoidably, due to limited
potential for growth in our trading business. Despite these prevailing economic
conditions, Mitsui Australia was able to achieve a consolidated after tax profit of
$375.29 million, representing a 145% increase on last year's result. This was
attributed to the strong results of our associated companies reflecting higher
prices of iron ore, coal, and energy in the first half of the year.
In March of this year our parent company Mitsui & Co. (of Japan) released its Long
Term Management Vision. Looking ahead we see long term structural changes as
the drivers of sustained global economic growth. World population growth and the
continued expansion of emerging economies will drive the proliferation of urban
living, in turn increasing demand for basic lifestyle needs such as water, energy,
and food. At the same time we will see increased demands placed on the natural
environment requiring new industrial solutions. Meanwhile, the global economy will
see fundamental structural changes, with predictions for Asia's share of world
GDP rising from its current level of around 25% to 35% in 2030 and 50% in 2050.
In this time of unprecedented challenges, we intend to use our sense of crisis as a
leverage to accelerate efforts in building strong foundations for the next phase of
long term growth. We believe Mitsui Australia is well positioned to meet the
demands of these drivers indentified in Mitsui's Long Term Management Vision.
Going forward we will advance our strategy of positioning Mitsui Australia as a
multifaceted supply base for raw materials. We will continue to grow and expand
in our traditional fields of business in Australia including, iron ore, coal, oil & gas,
salt and woodchips. At the same time we will seek out opportunities for new
investment with the aim of diversifying our portfolio. In the area of resources we
will place emphasis on exploring opportunities in corporate farming ventures, new
forestry and woodchip projects, and coal seam gas projects. In the field of the
environment we will continue our work on the development of the Bald Hills Wind
Farm project in Victoria, while exploring new opportunities in the area of biomass
fuels and solar power generation.
In these times of uncertainty we consider corporate social responsibility central to
the way we conduct our business. We will continue to uphold the company's values of challenge and innovation, freedom and open-mindedness, and nurturing
human resources, which have been in place throughout the company's history. In
doing so we will aim to undertake Yoi-Shigoto (good quality work) that benefits
society, adds value to our business partners, and enhances our professional
aspirations and self-esteem as individuals.
Atsushi Oi
Chairman and Managing Director
Mitsui & Co. (Australia) Ltd.
21 July 2009
