THE MHI VISION: 2021 AND BEYOND

THE 2018 MEDIUM-TERM
BUSINESS PLAN UPDATE

 

AN UPDATE ON OUR PROGRESS

Midway through our three-year Medium-Term Business Plan, we share an update on our progress towards our vision: To solve society's issues through global integrated engineering, ensuring long-term wellbeing and security for humanity.

AN UPDATE ON OUR PROGRESSAN UPDATE ON OUR PROGRESS

A MESSAGE FROM SEIJI IZUMISAWA, PRESIDENT AND CEO

SEIJI IZUMISAWA, President and CEO

One of my favorite expressions is: "Think big, start small." This is how I think of the Medium-Term Business Plan – an ambitious vision with a practical path forward. This approach will enable us to continue to provide value to our investors, our customers, our employees and society at large.

Since becoming CEO in April, I have seen the positive impact that the reforms we have undertaken during the past years have had on this company. We are executing as planned and have strengthened our financial foundations. While the global business environment presents us with a number of challenges, and while there are still actions we must take within the company, these reforms have prepared us well. Our progress despite these challenges gives me great confidence in the future.

Now, we are poised for the next stage of growth. In this Medium-Term Business Plan update, we share an expanded view of how global megatrends inform our business priorities. We will continue to focus our core competencies around society's needs and enhance our capabilities in Decarbonization, Electrification and Intelligent Systems. Integrating our proven excellence in manufacturing and mechanical systems together with the latest technologies will position us to provide practical solutions to the world's most pressing issues.

Our customers, investors and employees have high expectations for our company. As do I. We will continue to "think big, start small" as we drive efficiency and profitability, enabling successful growth for years to come.

SEIJI IZUMISAWA,
President and CEO

A STRATEGIC APPROACH TO GROWTH VIA MEGATRENDS

Global 'megatrends' and technological innovations inform strategic areas of focus. With manufacturing at our core, we will expand business areas that can contribute to short and long-term progress. Decarbonization, Electrification and Intelligent Systems emerge as key themes.

STRATEGIC INPUTS → PLANNED OUTCOMES

MHI'S PROVEN MANUFACTURING TECHNOLOGY AND TRACK RECORD

MEGATRENDS

  • Climate Change
  • Socially Responsible Investment
  • Declining Birthrate, Aging Population, Decrease in Experts
  • Anti-Globalism & National Populism

TECHNOLOGICAL INNOVATIONS

  • Communications & Security Technology
  • Sensor Technology
  • AI & Digital Technology
  • Materials Production and Processing Technology

  • DECARBONIZATION

    Customer and investor view of value changing, increased focus on low/no-carbon

    SHORT-TERM
    Lower carbon in existing businesses

    LONG-TERM
    Develop new decarbonized businesses

  • ELECTRIFICATION

    Combine turbomachinery technology with power electronics technology


    SHORT-TERM
    Convert products to electrical drive

    LONG-TERM
    Next-generation products with different concept and form

  • INTELLIGENT SYSTEMS

    Increase user value and decrease risk using data


    SHORT-TERM
    Expand data-driven service and operation businesses

    LONG-TERM
    Human-machine interaction, unmanned / labor-saving technologies

Opportunities in Decarbonization, Electrification and Intelligent Systems represent growth areas and will become central to core competencies as we shift resources from current businesses towards growth businesses over time.

SHIFT RESOURCES FROM CURRENT BUSINESSES REORGANIZATION OF BUSINESS PORTFOLIO

  • High Efficiency Gas Turbine Combined Cycle, Offshore Wind, Biomass Cofiring, Efficiency Improvements, Integrated Coal Gasification Combined Cycle, Carbon Capture and Storage
  • Hydrogen Power Generation, Energy Storage
  • Carbon Recycling
  • EV Components
  • Digitalized Services, Autonomous Operation
  • Logistics Automation
  • Electric Aircraft, Virtual Power Plant, Demand Response, Intelligent Defense

DECARBONIZATION, ELECTRIFICATION AND INTELLIGENT SYSTEMS AT WORK

DECARBONIZATION

We are balancing increased demand for electricity with lower carbon emissions using zero and low carbon technology:

ZERO CARBON

Hydrogen Gas Turbine

Hydrogen Gas Turbine

Carbon Capture, Utilization and Storage

Carbon Capture, Utilization and Storage

Light Water Nuclear Reactor

Light Water Nuclear Reactor

Offshore Wind

Offshore Wind

LOW CARBON

Next-Gen GTCC

Next-Gen GTCC

Integrated Gasification Combined Cycle

Integrated Gasification Combined Cycle

Upgrade Existing Steam Power

Upgrade Existing Steam Power

Organic Rankine Cycle

Organic Rankine Cycle

ELECTRIFICATION

We are making industry and infrastructure sustainable by contributing to environmentally conscious growth markets like EV components, next-generation forklifts, low Global Warming Potential chillers, and more.

REDUCE ENVIRONMENTAL BURDEN & EXPAND BUSINESS
Logistics

Logistics

Answering customer needs with nextgeneration forklift trucks

Mobility

Mobility

Speed up compatibility with EVs

Air Cond.

Air Cond.

Reduce environmental burden through high efficiency, low Global Warming Potential

INTELLIGENT SYSTEMS

INTELLIGENT SYSTEMS

We are optimizing business operations and realizing efficiencies and safety via sophisticated automation. One example is for automated power plants, as shown here.

INTELLIGENT SYSTEMS

ONGOING OPTIMIZATION OF CORE COMPETENCIES

In recent years, reforms have reduced the number of business domains from nine to three. We will continue to strengthen these domains by aligning innovation and core competencies within each to Decarbonization, Electrification, and Intelligent Systems.

  • POWER
    POWER
  • INDUSTRY & INFRASTRUCTURE
    INDUSTRY & INFRASTRUCTURE
  • AIRCRAFT
    AIRCRAFT,DEFENSE & SPACE
DECARBONIZATION
  1. Energy systems integration
  2. Carbon recycling
  3. Innovative catalyst technology (using materials & infomatics)
  1. Energy carrier production technology (hydrogen, ammonia, methanation, etc.)
  2. Renewables, hydrogen GTs, fuel cells, energy storage, CCUS
ELECTRIFICATION
  1. Electromagnetic field measurement & analysis
  2. Inverter circuit design & analysis
  1. Electrification system control tech
  2. Energy management tech
INTELLIGENT SYSTEMS
  1. Digital technology
  2. Data analysis, AI
  3. Sensing, image recognition tech
  1. Systems security tech
  2. Robotics & mechatronics

MANAGING AND DEEPENING GLOBAL REFORM

The start of the current Medium-Term Business Plan marked the conclusion of a period of significant reform and restructuring.Now we are focused on deepening reforms throughout our global organization in order to support our growth strategy.

MANAGING AND DEEPENING GLOBAL REFORM
  • ESTABLISH GROWTH PROMOTION DEPARTMENT
    • Establish agile business development department with direct CEO oversight to strengthen HQ-driven incubation
    • Support growth of existing businesses by rolling out technological trends and new business models across the Group
  • REORGANIZE BUSINESS STRUCTURE
    • Explore reorganization of business structure to drive global expansion of businesses in growth strategy
    • Drive synergies by placing Mitsubishi SpaceJet, CRJ and Tier 1 businesses under same commercial aviation segment management
  • HR MANAGEMENT
    • Acquire talent that can thrive in businesses focused in electrification, intelligent technologies and further globalization
    • Develop plans to nurture selfdirected talent, HR systems and shared platforms that support growth strategy

RISE TO MEET THE FUTURE