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November 11, 2016
Mitsubishi Corporation

Mitsubishi Corporation Establishes Business Alliance with Supermarket Chain ALBIS

Mitsubishi Corporation (hereinafter "MC") has reached an agreement to establish a comprehensive business alliance and commence consultation on a capital tie-up with ALBIS Co., Ltd. (ALBIS), which runs a supermarket chain in the Hokuriku region of Japan.
 
1. Purpose of the alliance
In Medium-Term Corporate Strategy 2018, the company’s three-year management strategy, MC has positioned the retail business as one of its main areas of focus. MC sees food retail businesses such as supermarkets as an indispensable element for sustaining consumers’ lifestyles and a major source of support for the development of local industries, including agriculture and fisheries as well as food, clothing and housing related businesses. MC is therefore committed to leveraging its broad business foundations to support the growth of retail businesses such as supermarkets operating in different regions across Japan and in so doing help to protect local food culture and lifestyles, stimulate dynamism in related local industries and make an overall contribution to regional revitalization in Japan through its initiatives in the retail sector.
 
ALBIS started in Imizu City in Toyama prefecture in 1968 as a food wholesaler for supermarkets. It later entered the supermarket business in 1992. Since then, it has focused on expanding its retail business across the Hokuriku region and now has 54 outlets operating across the three prefectures, making it the largest supermarket chain in the region. In 2015, ALBIS became listed on the First Section of the Tokyo Stock Exchange and in April this year, released its three-year medium-term management plan, which outlines the company’s efforts at strengthening key business foundations and creating new markets as it seeks to sustain steady corporate growth.
 
MC and ALBIS share the recognition that, in addition to supplying materials that are indispensable for everyday life, supermarkets play a critical role in supporting local food culture and lifestyles and are essential to the development of local industry. Working across regions and business fields and drawing on expertise from MC’s network of group companies, such as convenience stores and supermarkets, the initiative will contribute to the strengthening of business foundations in the Hokuriku region and lead to business growth and increased corporate value for MC and ALBIS.
 
 
2. Comprehensive Business Alliance
Working with ALBIS, MC will leverage its broad business foundation to help expand business and contribute to the development of the food culture and lifestyles in the Hokuriku region in a number of areas, as follows.
 
 1) Collaboration in food retail
Facilitate collaboration between ALBIS and MC Group companies operating retail businesses, including convenience stores and supermarkets
 
2) Market entry
Support ALBIS’ goal of expanding into other regions by collaborating in the opening of new stores and as well as in the procurement and distribution of materials
 
3) Customer service
Draw on Ponta, the customer loyalty program administered by Loyalty Marketing, Inc., in which MC has a 47.37% stake to improve customer convenience and to design strategies for marketing products carried by ALBIS, including locally produced goods
 
4) Strengthening procurement and R&D
Leverage the MC Group’s procurement network and its product development know-how to strengthen product appeal and competitiveness at ALBIS, including the possibility of undertaking joint product development and complementary supply with MC Group convenience stores and supermarkets
 
5) Distribution
Calling on the MC Group’s distribution and logistics networks and expertise to help ALBIS construct a new distribution and processing center, a move which is set to take the company to a new level of growth
 
6) Others (as decided by the parties)
 
3. Capital Alliance
We will accelerate the implementation of various measures based on this comprehensive business alliance agreement and we will start negotiations on raising the investment ratio in ALBIS. We will disclose the facts decided or generated according to the progress of consultation in a timely manner.
 
4. Outline of ALBIS Co., Ltd. (As of March 31, 2016)
(1) Company Name: ALBIS Co., Ltd
(2) Headquarters: 3-4, Mitoda, Ryutsu Center, Imizu City, Toyama
(3) President / CEO: Minoru Omori
(4) Business type: Supermarket
(5) Capital: JPY 2,896,091,724-
 

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