President and CEO Izumisawa Offers New Employees Words of Welcome, Advice and Encouragement

Summary of Mr. Izumisawa’s Message

MHI Group’s Vision

Today, the global situation has become increasingly unstable under the impact of the coronavirus pandemic and deterioration in international relations. Meanwhile, measures are being taken to address global environmental concerns, and major technological innovations are being achieved under the “Fourth Industrial Revolution.” As a result, the environment surrounding MHI Group is undergoing significant changes. But it is precisely in times such as these that we, in our corporate role, must firmly stay the course and keep contributing to the betterment of society. For us to continue making social contributions, I firmly believe that, based on the trust and technologies we have cultivated throughout our history, MHI Group must remain keenly alert to global needs and address those needs with diverse technologies and human resources all working toward common goals of humanity.

In October 2020, MHI Group drew up its new “2021 Medium-Term Business Plan,” or “MTBP,” spanning from FY2021 through FY2023. The 2021 MTBP has two main focuses: 1) to achieve a rapid return to, and strengthen, the Company’s profitability, and 2) to set clear directions for achieving strong corporate growth going forward.

To achieve a rapid return to and strengthen our profitability, we will focus on expanding our business scope to include auxiliary services, and also improve our work processes and implement organizational reforms in order to boost our profit-generating capacity. Ongoing profit growth is essential to enabling us to continuously conduct and grow our business operations.

To set down a clear path for achieving our future growth, under our 2021 MTBP we will focus on “Energy Transition” and “New Mobility & Logistics.”

• Concerning Energy Transition, we will take proactive steps toward achieving carbon neutrality, a major challenge of mankind. Energy is essential to our human lives, and MHI Group, as a manufacturer and provider of energy-related products, is committed to supporting people’s lives through continuous provision of products that are safe to use, friendly to the environment, sustainable, and fairly priced. Applying our technologies and experience, we will strive to help achieve this goal of global scale, to make people’s lives ever more abundant and rewarding everywhere.
• Regarding New Mobility & Logistics, developments in electrification and incorporation of AI in machine systems today are enabling increasing adoption of autonomous driving, automated and autonomous logistics systems, and other innovations. By integrating MHI Group’s technologies with external technologies in areas such as digitalization and AI, we will provide customers with new value and develop new business fields.

My Aspirations for All New Employees

As you now go forward learning your respective work tasks, I ask that you keep two things in mind.

The first is my personal motto: “shu-ha-ri.” This is a concept in martial arts training describing the three stages toward achieving mastery. “Shu” means to preserve and maintain what has come before us: in other words, to learn precisely and faithfully what our teachers instruct us. This is followed by the phase of “ha,” which means to break, as with tradition; in this phase, one makes innovations and changes to what we have been taught. Finally, the third phase is “ri,” meaning to depart from; in this phase, we completely depart from earlier precedents and act independently as we believe best. As new employees, to begin I ask you to first learn and fully master what you are taught by your senior colleagues.

The second thing I ask you to keep in mind is what I refer to as “the first person.” With all employees, not only those of you joining us today, I ask you to consider each work task as your personal task. Go about your tasks yourself, on your own, without putting blame for any mistakes on others. When each and every employee keeps this in mind, the result will be better teamwork, and all employees, I believe, will be able to grow and make great strides on the basis of what they have accomplished through their work.

In closing, I wish to remind you that staying healthy forms the base on which your lives depend. No matter how outstanding a person may be, they are unable to make the most of their capabilities unless they are healthy in both mind and body. Today, the end of the coronavirus pandemic is still not in sight. I ask that you all do everything possible to minimize the risk of spreading this disease, stay healthy, and maintain a healthy mental and physical balance in all aspects of your work.