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  • Energy & Environment
  • [FOCUS]Energy & Environment
  • Commercial Aviation & Transportation Systems
  • [FOCUS]Commercial Aviation & Transportation Systems
  • Integrated Defense & Space Systems
  • [FOCUS]Integrated Defense & Space Systems
  • Machinery, Equipment & Infrastructure
  • [FOCUS]Machinery, Equipment & Infrastructure

Image:Integrated Defense & Space Systems

Providing integrated defense systems encompassing land, sea, air, and space applications as well as space-related equipment and services

Integrated Defense & Space Systems

Integrated Defense & Space Systems provides integrated land, sea, air, and space defense systems—encompassing naval ships, defense aircraft, missile systems, launch vehicles, and special vehicles—and space-related services. Through the cutting-edge technologies cultivated in these fi elds, MHI is positioned to supply products and services with high added value.

SWOT Matrix

Image:SWOT Matrix

Basic Strategies

  • Propose integrated defense systems by coordinating businesses for land, sea, air, and space defenses
  • Promote the mutual application of defense and space technologies and civilian technologies and cost reductions
  • Respond to globalization
  • Bolster launch capabilities and cost competitiveness through the development of a new flagship launch vehicle

photo:Yoichi Kujirai Domain CEO, Commercial Aviation & Transportation Systems
In accordance with the Japanese government’s policies and objectives, we apply our comprehensive expertise and advanced technological capabilities on various types of products in land, sea, air, and space systems to meet the needs of our customers.
Hisakazu Mizutani
Domain CEO, Integrated Defense & Space Systems

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Fiscal 2013 in Review

During the year, orders for naval ships and defense aircraft rose, and some orders were received ahead of schedule. As a result, on a consolidated basis this domain booked orders of ¥547.3 billion for fiscal 2013, up from the previous year’s level.

Consolidated net sales in this domain rose, to ¥469.4 billion, buoyed by higher sales of defense aircraft, missiles and other items.

Boosted by the rise in sales, consolidated operating income increased, to ¥27.6 billion.

Graph:Orders Received / Net Sales / Operating Income

Operating Environment

The East Asian security environment remains under rising tensions, but growth in defense-related budgets has been sluggish. This trend is expected to continue, and we see little likelihood of this market expanding substantially. The National Security Strategy (NSS) that Japan adopted at the end of 2013 calls for the country to contribute even more proactively in securing peace, stability, and prosperity of the international community as a “Proactive Contributor to Peace,” based on the principles of international cooperation. The National Defense Program Guidelines announced in conjunction with the NSS explain Japan’s policy to build a Dynamic Joint Defense Force to address the global security challenges and conduct a diverse range of activities to be seamless as well as dynamic based on joint operations. In response to the Three Principles on Transfer of Defense Equipment and Technology adopted by Cabinet decision in April 2014, MHI recognizes the importance of responding adroitly to the country’s defense-related needs by pursuing globalization initiatives and reinforcing its defense production and technology base.

As for recent space systems business, the government’s Basic Space Plan on Space Policy outline has shifted from space development to space utilization. Furthermore, the space systems business environment is in flux, as demonstrated by the increasingly competitive international launch market.

Initiatives for Growth over the Medium to Long Term

The basic policy of this domain is to ensure the safety and security of the populace and contribute to long-term economic and social development by fostering cutting-edge technologies in the defense and space businesses and applying the defense and space technologies to civilian sectors. At the same time, we strive to uphold the levels of safety assurance, compliance, and information security that are essential to the operation of these businesses.

In the defense business, we will provide products and services that meet customers’ needs for joint operation by generating synergies across product lines for the technologies related to land, sea, and air. These products and services were divided along product lines under the Business Headquarters Structure and are now integrated by this domain.

Specifically, we will collaborate with customers in developing compact, sophisticated escort ships and amphibious vehicles, considering technologies for future surface-to-air missiles, and researching technologies related to future jet fighters. In these ways, we will move forward with initiatives targeting the demand related to national security.

In the space systems business, we aim to maintain a high success rate for our H-II A/B rockets. Furthermore, we will continue to assume a leading role in Japan’s space development and endeavor to expand this business by developing a new flagship launch vehicle. (See the “FOCUS” article on the next page for details.)

MHI is dedicated to a core vision of supplying cutting-edge technologies for national safety and security. As a leading supplier in the Japanese defense industry, MHI endeavors to maintain and strengthen defense production and technological bases. MHI develops and manufactures a vast array of defense equipment to meet the needs of the Japanese government and also provides operational support.

See the following website for information on maintaining and strengthening defense production and technological bases.

http://www.mhi.com/company/csr/index.html

Strategic Business Unit (SBU)

  • Naval Ship
  • Defense Aircraft
  • Missile Systems
  • Defense Aero-Engines & Control Equipment
  • Maritime Systems
  • Space Systems
  • Special Vehicle
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