Tel.

+44 (0)20 7232 3090 Traded on

AIM, London
Fax +44 (0)20 7232 3099 Stock Exchange

www.iirgroup.com Regulated and

LSE: IIR authorised by

Mitsui & Co., Ltd. 10 July 2008

Update Report – FY 2008 Results

Rising oil prices will drive performance, growing forward

Common BUY Direct access to the full report free of charge at

Fundamental research indicates a 44% upside in the common stock over the next 6-24 months. We
have calculated the target price based on fundamental factors, using a weighted average of target
Stock http://www.iirgroup.com/researchoracle/viewreport/show/20272
prices obtained using DCF and comparative valuation methodologies.

Ticker: 8031.T
Target price: ¥3,080
We reiterate the common stock a BUY with a 6-24 month target price of ¥3,080.
Current price: ¥2,140

ADR BUY The ADR is expected to appreciate by approximately 44% over the next 6-24 months in line with the
common stock as currency impact is anticipated to be neutral over the same period.

Ticker: MITSY
Target price: US$575.73 We upgrade the ADR (1 ADR = 20 shares) from a HOLD to a BUY with a 6-24 month target price of
Current price: US$399.50 US$575.73.

Supervisor: Nirav Shah

Analyst: Anuj Upadhyay Investment horizon – short term actionable trading strategies
Editor: Matthew Bridle This report addresses the needs of strategic investors with a long-term investment horizon of 6-24 months. If
Global Research Director: this report is provided to you by your broker under the Global Settlement, you may now also access (free of
charge) the short-term trading outlook that we publish from time to time for this issuer, looking at the coming
Satish Betadpur, CFA 5-30 days for readers with a shorter trading horizon. These are available on-line only at
www.researchoracle.com
Next news due:
1Q 09 results 03 August 2008
Report summary
Mitsui & Co., Ltd.’s (Mitsui) FY 2008 total trading transactions (the aggregate value of sales contracts
in which the company has entered in a principal capacity as well as transactions in which it acts as an
agent) increased 11.4% y-o-y, above our expectation, while revenues increased 19.7% y-o-y, in line
with our expectation. The Energy, Machinery & Infrastructure Projects and Chemical segments were
chief contributors to this growth in revenues during the year. Mitsui’s operating margin increased 63
bps y-o-y to 6.5% due to lower Selling, General and Administrative (SG&A) expenses in FY 2008.
However, adjusted1 net margin declined on a y-o-y basis given rising minority interest charges. Going
forward, we expect the Energy segment to continue to perform strongly driven by rising oil prices and
growing demand for ethanol. Therefore, given our positive outlook for the company and the current
price levels, we view the common stock as an attractive investment opportunity.

Currency impact for US investors

The impact by itself of the anticipated currency movements on the Japanese stock (now US$399.50),
without considering changes in the share price, is broadly positive and is expected to be:

Over 6 months: US$465.22

Over 12 months: US$407.62
Over 24 months: US$400

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