President Izumisawa's 2024 New Year Message (Summary)

2023: A Year When MHI Group Was Challenged to Show Our True Value

• 2023 was an unpredictable year typified by VUCA.(Note) Instability remains in the world economy and geopolitical climate, and the capitalist values and systems that have upheld the global order since the Second World War have shown signs of faltering.
• Contrastingly, humanity has started to address pressing environmental issues through initiatives seeking to balance decarbonization with economic growth.
• As a result of efforts to enhance profitability, we achieved record order intake, revenue, and business profit in the first half of FY2023.

Pursuit of Profitability and Business Growth under the 2024 Medium-Term Business Plan

• We will now enter a new stage as we pursue both profitability and business expansion under the 2024 Medium-Term Business Plan, which goes into effect this year.
• Reflecting changes in global society and the latest medium- to long-term megatrends, the 2024 Medium-Term Business Plan will focus on three priorities: Decarbonization, Energy Conservation/Automation, and Contribution to New National Security Measures. MHI Group will provide realistic solutions tailored to each region and customer while increasing profits and expanding our business to secure a strong global position.
• We will draw on the pride and craftsmanship at the heart of our monozukuri heritage as we expand our business activities further upstream and downstream along our value chains. Our ultimate aim is to become a hub for transformational ecosystems.

Achievement of the 2024 Medium-Term Business Plan

• Become experts in our markets
  Living in the age of VUCA, even our customers themselves do not always know what they need. We must uncover our customers' latent needs and offer technology- and product-based solutions to address them.
• Maximize our value as a conglomerate
  MHI Group boasts a broad range of products and businesses that can be combined to offer unprecedented solutions. In the energy sector, for example, we can combine gas turbines with carbon capture. In the material handling sector, we can offer autonomous warehouses, which combine automated transfer vehicles with picking robots, together with state-of-the-art warehouse control systems. The possibilities are endless. We must leverage our combined strengths with flexible thinking while eliminating barriers between our business units. We will also need to expand into new areas beyond manufacturing, for example, connecting upstream and downstream business areas, and building new value chains.

• VUCA: Volatility, uncertainty, complexity, and ambiguity. A symbol of the unpredictability of the modern world.