Top of page. Skip to main contents. Skip to main menu. Skip to footer.

Press Information

Formal Decision Taken on Absorption-type Split of MHI's Aero Engine Business to Consolidated Subsidiary

  • Text Size:SML
  • Print
  • Linkedin

1. Aims of the Company Split

The decision to transfer MHI's defense aero engine business operations to MHIAEL was taken in a quest to achieve greater flexibility and agility in related business management and to put in place a structure conducive to swift decision-making by consolidating commercial aero engine business and the defense aero engine business. By integrating these two strongly related businesses at MHIAEL, the objectives are to achieve further expansion in related business scale and to strengthen initiatives into new areas and new technologies by way of response to the globalization trend underway today in the aero engine industry.

2. Overview of the Company Split

(1) Schedule

Contract signing December 15, 2016
Effective date April 1, 2017 (subject to change)

* As the company split will be a simple absorption-type split pursuant to Article 784, Paragraph 2 of the Companies Act of Japan, approval at a general shareholders meeting as stipulated in Article 783, Paragraph 1 of that Act is not required.

(2) Company Split Method

This will be a simple absorption-type split, with MHI as the splitting company and MHIAEL as the successor company.

(3) Allocation Relating to Company Split

Coinciding with the company split, MHIAEL will issue 10 shares of common stock to be allocated in full to MHI.

(4) Handling of Stock Acquisition Rights and Bonds with Stock Acquisition Rights Accompanying the Company Split

Obligations based on the stock acquisition rights of MHI, the splitting company, will neither be transferred to nor succeeded to by MHIAEL, the successor company. MHI has not issued any bonds with stock acquisition rights.

(5) Changes in Capital Amount Accompanying the Company Split

The company split will result in no decrease either in MHI's capital or in its capital reserve.

(6) Rights and Obligations Transferred to the Successor Company

  • 1)The successor company will succeed to the intellectual properties and related assets, rights and obligations pertaining to the aero engine business of the splitting company (with the exception of anything stipulated as exempt in the split agreement).
  • 2)Any and all liabilities or other obligations of the splitting company which the successor company succeeds to shall be succeeded cumulatively.

(7) Outlook on Performance of Obligations

Any obligations which the splitting company and the successor company should bear as a result of the company split will be duly met.

3. Outline of the Companies Involved in the Company Split

  Splitting Company
(as of March 31, 2016)
Successor Company
(as of March 31, 2016)
(1) Name Mitsubishi Heavy Industries, Ltd. (MHI) Mitsubishi Heavy Industries Aero Engines, Ltd. (MHIAEL)
(2) Head Office 16-5, Konan 2-chome, Minato-ku, Tokyo 1200 Higashi-tanaka, Komaki City, Aichi Prefecture (located within the Nagoya Guidance & Propulsion Systems Works Main Plant)
(3) Representative Shunichi Miyanaga
President and CEO
Katsuyuki Shimauchi
President and CEO
(4) Business Manufacture, etc. of ships, marine engines, power systems, machinery, steel structures, aircraft, aerospace systems, industrial machinery, special vehicles, etc. * Design, manufacture, repair and marketing of aero engines, their parts and components, and ancillary equipment
* Design, manufacture, repair and marketing of gas turbine engines for power generation or mechanical drives, parts and components, and ancillary equipment
* All business ancillary to the foregoing
(5) Capital 265,608 million yen 6,000 million yen
(6) Establishment January 11, 1950 October 1, 2014
(7) Number of issued shares 3,373,647,813 1,400
(8) Fiscal year end March 31 March 31
(9) Major shareholders and shareholdings
  • Japan Trustee Services Bank, Ltd. (Trust Account)
4.68%
  • The Master Trust Bank of Japan, Ltd (Trust Account)
3.87%
  • The Nomura Trust and Banking Co., Ltd. (Retirement Allowance Trust, The Bank of Tokyo-Mitsubishi UFJ, Ltd. Account)
3.72%
  • Meiji Yasuda Life
2.37%
  • The Bank of New York Mellon SA/NV 10
1.99%
  • Mitsubishi Heavy Industries, Ltd.
89%
  • Development Bank of Japan Inc.
10%
  • IHI Corporation
1%
(10) Fiscal Status and Earnings Results during the Most Recently Completed Fiscal Year
  Splitting company
(consolidated)
Successor company
(non-consolidated)
Net assets 1,998,078 million yen 61,923 million yen
Total assets 5,491,799 million yen 126,444 million yen
Net assets per share 500.30 yen 51,941,319.18 yen
Net assets per share 500.30 yen 51,941,319.18 yen
Revenues 4,046,810 million yen 44,050 million yen
Operating income 309,506 million yen 1,156 million yen
Ordinary income 272,500 million yen 580 million yen
Net income 63,834 million yen 444 million yen
Net income per share 19.02 yen 448,991.50 yen

(11) Description of Business being Split or Succeeded to

Design, manufacture, quality assurance, marketing and after-sale servicing of defense aero engines and related parts (including ancillary businesses)

(12) Earnings of Business being Split or Succeeded to

  Business being split (a) MHI total (consolidated) in FY ended March 2016 (b) Percentage (a/b)
Revenues 12,499 million yen 4,046,810 million yen 0.3%

(13) Assets and Liabilities of Business being Split or Succeeded to

Assets 6,900 million yen
Liabilities 5,900 million yen

4. Status of Splitting Company after Split

(1) Name Mitsubishi Heavy Industries, Ltd.
(2) Head Office 16-5, Konan 2-chome, Minato-ku, Tokyo
(3) Representative Shunichi Miyanaga, President and CEO
(4) Business Manufacture, etc. of ships, marine engines, power systems, machinery, steel structures, aircraft, aerospace systems, industrial machinery, special vehicles, etc.
(5) Capital 265,608 million yen
(6) Fiscal year end March 31

5. Status of Successor Company after Split

(1) Name Mitsubishi Heavy Industries Aero Engines, Ltd.
(2) Head Office 1200 Higashi-tanaka, Komaki City, Aichi Prefecture (located within the Nagoya Guidance & Propulsion Systems Works Main Plant)
(3) Representative Katsuyuki Shimauchi, President and CEO
(4) Business * Design, manufacture, repair and marketing of aero engines, their parts and components, and ancillary equipment
* Design, manufacture, repair and marketing of gas turbine engines for power generation or mechanical drives, parts and components, and ancillary equipment
* All business ancillary to the foregoing
(5) Capital 6,000 million yen
(6) Fiscal year end March 31

6. Outlook

Impact from the company split on MHI's earnings will be minimal, on both a consolidated and non-consolidated basis.