Mitsubishi & Co., Ltd. ("Mitsubishi", Head Office: Tokyo, President and CEO: Kenichi Hori) has entered into a share subscription agreement with Stima Energia ("Stima"), a Brazilian trading company. Mitsubishi expects to be a 36% shareholder of Stima.

Stima is a leading independent trading company who has been increasing its trading volume to 1GW (annual average) level since its establishment in 2017. Stima has been taking the power price hedging and liquidity providing role towards its counterparties in the Brazilian energy free market where hydroelectric power comprises around 70% of the power generation. In Brazil, the increase of power demand is forecasted relatively stronger compared to Europe, United States and Japan, and the price volatility has been increasing due to the draughts in recent years. It is also expected that the market will keep expanding as further liberalization of the power market progresses. Mitsubishi and Stima will aim to contribute for more counterparties by increasing our trading volume and capability in this growing market.

In order to contribute to the realization of a low-carbon society, Mitsubishi has been promoting infrastructure business such as participating in Brazil's 4th largest hydropower plant Jirau (3,750MW) which provides electricity for around 10 million people in major cities like São Paulo and Rio de Janeiro. Through this capital participation in Stima, as Mitsubishi group has been promoting power trading business in Europe, United States and Japan, Mitsubishi aims to strengthen the trading and risk management function towards stakeholders in Brazil who are affected by climate change, and to maximize the value of Mitsubishi's electric-power related business in Brazil.

Mitsubishi has identified energy solutions as one of its strategic focus areas, and places great emphasis on the creation of business that contributes to solutions to climate change issues in order to contribute to the creation of a society harmonized with the environment.