Extending Our Business Lines from Aircraft and General Industrial Machinery to Include Lithium-ion Batteries

In the field of aircraft, we are expanding our businesses in areas related to defense, civil aircraft, aircraft leasing, and electronics and security based on the excellent relationships we have built over many years with aerospace companies with world-leading advanced technological capabilities. These companies include The Boeing Company, Raytheon Company, Lockheed Martin Corporation, Northrop Grumman Corporation, and Honeywell International Inc.

With ITOCHU as the mainstay, Group companies, ITOCHU Aviation Co., Ltd. and Japan Aerospace Corporation in Japan, ITOCHU Aviation, Inc. and JAC USA in the United States undertake marketing and contract implementation in the field of defense and government business as well as private/business aircraft business. For civil airlines, we swiftly identify market needs in a wide range of business areas and provide precise business solutions through JAMCO Corporation, which operates an aircraft interior and maintenance business, and ITOCHU AirLease B.V. in the Netherlands, which leases commercial aircraft.

In Industrial Systems, meanwhile, ITOCHU Machine-Technos Corporation and ITOCHU SysTech Corporation are mainly responsible for selling general industrial machinery, trading electronic components and devices, operating the parts procurement business, Vendor Managed Inventory (VMI), and selling LC display manufacturing machinery and associated components. Also, we are extending our business lines to include such areas as lithium-ion batteries, and the sales of related manufacturing equipment and materials. In particular, we are focusing efforts on establishing foundations for lithium-ion batteries businesses by stepping up business collaborations with major companies in Japan and overseas. As our first project based on a tie-up with Duke Energy Corporation of the United States, we are considering a business model for the home or commercial reuse of vehicle mounted lithium-ion batteries. The project uses the vehicle mounted lithium-ion batteries of Ener1, Inc., a company in which we have a stake. As well as seeking early commercialization of this project, we will continue considering business collaborations in the areas of smart grids and renewable energy.