Mitsubishi Heavy Industries : Presentation Materials (4.02 MB)

2024 Medium-Term Business Plan

(FY2024 - FY2026)

May 28, 2024

Seiji Izumisawa, President & CEO

Mitsubishi Heavy Industries, Ltd.

© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

Table of Contents

1. Mission and Vision for Society
2. Review of 2021 MTBP*
3. MHI's Operating Environment and Expected Roles
4. Strategy and Targets
5. Key Initiatives
6. Strengthen Technologies and Human Capital
7. Promote MISSION NET ZERO

© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

2

*Medium-Term Business Plan

1. Mission and Vision for Society

1. Mission and Vision for Society

Our Mission

Combine cutting-edge technology with many years of expertise to provide

solutions to the evolving challenges facing the world while enriching people's lives

Our Vision for Society

Safety

Security Comfort

Safe, Secure, and Comfortable World

• Provide realistic solutions tailored to local communities and customers to solve societal issues
• Starting with manufacturing, expand our scope of work both up- and down-stream within value chains, form partnerships, and become a hub for ecosystems to change society

Succeed in the global competitive landscape into the future

by realizing our vision for society

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4

2. Review of 2021 MTBP

2. Review of 2021 MTBP

• Despite uncertainty in our operating environment, strengthened profitability, achieving record profits and building strong business and financial foundations
• Through the development of future growth areas, identified commercial opportunities in hydrogen, ammonia, CCUS,1 electrification, and data centers.

2018 MTBP

2021 MTBP

• Expand to ¥5 tr
• Strengthen Financial Foundation
• Continue Business Structure Reforms

• Strengthen Profitability
• Develop Future Growth Areas

Revenue		Business Profit2		Net Interest-Bearing Debt
(trillion yen)		(billion yen)		(billion yen)

CAGR3 8%4	4.7
	200.5
4.1
3.7			4.9%

FY18 FY19 FY20 FY21 FY22 FY23

FY18

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5x4

282.5

660.2 55% reduction4

6.1%

381.9

54.0

297.7

1.5%

FY20

FY21

FY22

FY23

FY18

FY19

FY20

FY21

FY22

FY23

6

1 Carbon dioxide Capture, Utilization and Storage 2 Profit from Business Activities 3 Compound annual growth rate 4 vs. FY20 levels

3. MHI's Operating Environment and Expected Roles

3. MHI's Operating Environment and Expected Roles

• Contribute to solving the increasingly complex issues society faces as our operating environment changes

Operating Environment

Rising demand for diverse and stable

decarbonized power sources

Expansion of power demand from spread of

generative AI and electrification

Growing momentum to strengthen

economic security

Labor shortages in advanced economies

Increasing geopolitical risks

Expected Roles

Contribute to decarbonization

• Energy supply side
• Provide stable supply of energy
• Realize energy transitions tailored to local conditions
• Energy demand side
• Improve efficiency and automate with digital technologies
• Launch environmentally conscious products on the energy demand side

Contribute to national security

• Strengthen national security with comprehensive approach

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4. Strategy and Targets

4. Strategy and Targets

• Strengthen portfolio management leveraging business and financial foundations established during the 2021 MTBP
• Strengthen the technologies and human capital that support these efforts, and promote MISSION NET ZERO

Balance business growth with further profitability improvements

Strengthen Portfolio

Management

Strengthen Technologies

and Human Capital

Promote

MISSION NET ZERO

© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

	¥4.6 tr 20%	≥¥5.7 tr
Revenue
	FY23	FY26
	60%	≥¥450.0 bn
Business	¥282.5 bn	≥8%
Profit	6%
	FY23	FY26
ROE	11%	≥12%
	FY23	FY26

Exchange rates assumptions: ¥140/USD, ¥150/EUR 10