Marubeni CEO Masayuki Omoto during the interview. (©Sankei by Yuki Kajiyama)
President and CEO Masayuki Omoto of Marubeni Corporation intends to double the company's market capitalization to over ¥10 trillion JPY (about $67.5 billion USD) by the fiscal year ending March 2031. He shared this in an interview with The Sankei Shimbun on August 22. Marubeni Corp is one of Japan's leading trading houses, operating globally in energy, metals, food, and other sectors.
In addition to its core operations in the United States, Marubeni plans to strengthen its presence in Africa, which is experiencing rapid growth. The company also aims to increase profits from its Middle East and Africa businesses by about 25%, reaching ¥25 billion (about $169 million) in FY2028 compared with FY2025.
Excerpts from the interview follow.
Joining the ¥10 Trillion Club
You've set a goal to double Marubeni's market capitalization to over ¥10 trillion by FY2031. Only the top three trading houses have achieved this.
Having once left Marubeni and then returned, I can objectively say that the company has been undervalued. Under former president [now chairman] Masumi Kakinoki, market capitalization grew step by step from ¥1 trillion to ¥4 trillion, then ¥5 trillion over six years.
My mission is to take it to the next level. I thought it would be clearer to announce a concrete target both inside and outside the company. This has fostered a sense of unity within Marubeni.
Which business areas is Marubeni focusing on?
We focus on three criteria: growth domains, high added value, and scalability. Businesses that meet all three are our "winning businesses," and we're concentrating resources there. I always highlight agricultural material sales in the United States, given its status as the world's breadbasket. Next are US automobile sales and retail power services using renewable energy. But fundamentally, we're not limited to any one field. We invest heavily where the opportunity is strongest.
Are you concerned about the impact of high tariffs under the Trump administration?
The impact is limited, as the United States is our most profitable region. A US recession would be the worst-case scenario.
Business in Africa
Africa is attracting attention with TICAD held in Yokohama and new economic initiatives by Prime Minister Shigeru Ishiba. How is Marubeni responding to these developments?
Population growth is the main driver of economic growth. There is no reason for us not to focus on a region where the population will undoubtedly continue to rise. It is the last frontier for us and an important region. In 2022, we launched a cross-divisional Africa Business Promotion Committee, and the entire company will work together to capture opportunities there.
Marubeni recently invested in Mauritius-based Philips Healthcare Corporation. What is the strategy behind this investment?
The African pharmaceutical market is expected to grow about 10% annually. Pharmaceuticals are highly value-added products, and expanding our presence there offers scalability. Our investment in Philips, operating in nine African countries, is a strategic move. We are also pursuing other projects to capture Africa's domestic demand. With population growth, these markets present solid business opportunities.
The Buffett Factor
The five major trading houses are known for having Warren Buffett's investment company as a shareholder. How do you view his involvement?
Mr Buffett has said that the Japanese trading house business model can last 100 years. At his investment company's shareholder meeting in May, he stated that he would like to hold the shares for 50 years. For an American investor, such statements are extremely rare. In the US, business thinking has evolved quite rationally, and most people generally consider it more reasonable to focus on a single business rather than diversify [like a trading house with multiple businesses].
Mr Buffett has succeeded in finance, insurance, and railroads. His shareholding is highly meaningful because it highlights the opportunities that arise from diversification [and shows the value of trading houses].
Do you feel any pressure from this?
Of course. Mr Buffett is one of the world's top investors. He's likely monitoring our daily performance closely, which creates intense pressure. To meet expectations, we must focus on the right businesses. If trading houses succeed in planting deep roots in winning businesses, I think they can endure for 100 years.
About Masayuki Omoto
Born in Ehime Prefecture, age 55. Graduated from Waseda University's School of Commerce. Joined Marubeni in 1992, moved to McKinsey & Company in 2006, and returned to Marubeni in 2007. Became the first head of the Next Generation Business Development Division in 2019, then served as executive officer and managing executive officer. Assumed the presidency in April 2025.
Editor's Note
Former president (now chairman) Masumi Kakinoki once called Omoto a "corporate warrior." Omoto attributes this to working together about 20 years ago, when his stern, intense approach probably intimidated colleagues. Times have changed, and he now "tries to avoid that side of himself."
In April, he rose 14 ranks to become president, chosen also for his unifying presence. As the only president in his 50s among the five major trading houses, it will be interesting to see if his leadership style returns to that of a "corporate warrior."
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(Read the interview in Japanese.)
Author: Katsufumi Sato, The Sankei Shimbun
