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.
A MESSAGE FROM 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.
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
- Climate Change
- Socially Responsible Investment
- Declining Birthrate, Aging Population, Decrease in Experts
- Anti-Globalism & National Populism
- Communications & Security Technology
- Sensor Technology
- AI & Digital Technology
- Materials Production and Processing Technology
Customer and investor view of value changing, increased focus on low/no-carbon
Lower carbon in existing businesses
Develop new decarbonized businesses
Combine turbomachinery technology with power electronics technology
Convert products to electrical drive
Next-generation products with different concept and form
Increase user value and decrease risk using data
Expand data-driven service and operation businesses
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
We are balancing increased demand for electricity with lower carbon emissions using zero and low carbon technology:
Hydrogen Gas Turbine
Carbon Capture, Utilization and Storage
Light Water Nuclear Reactor
Integrated Gasification Combined Cycle
Upgrade Existing Steam Power
Organic Rankine Cycle
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
We are optimizing business operations and realizing efficiencies and safety via sophisticated automation. One example is for automated power plants, as shown here.
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.
INDUSTRY & INFRASTRUCTURE
AIRCRAFT,DEFENSE & SPACE
- Energy systems integration
- Carbon recycling
- Innovative catalyst technology (using materials & infomatics)
- Energy carrier production technology (hydrogen, ammonia, methanation, etc.)
- Renewables, hydrogen GTs, fuel cells, energy storage, CCUS
- Electromagnetic field measurement & analysis
- Inverter circuit design & analysis
- Electrification system control tech
- Energy management tech
- Digital technology
- Data analysis, AI
- Sensing, image recognition tech
- Systems security tech
- 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.
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
- 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