Tokyo, January 6, 2020 - Mitsubishi Heavy Industries, Ltd. (MHI) President and CEO Seiji Izumisawa delivered an address to employees, commencing the New Year. The following is a summary of the main points of his remarks.
In 2019, natural disasters were a frequent occurrence in all parts of the world. Japan suffered torrential rains and typhoons that far exceeded all expectations, while other countries were plagued by hurricanes and wildfires, bringing home the reality of global climate change. The global economy was similarly unpredictable, due to the trade friction between the U.S. and China, and instability in Europe exemplified by Brexit. Geopolitical challenges and significant transformation in the energy sector made this a year of continuing change.
Despite these difficulties, the MHI Group was able to deliver a relatively solid performance. This is thanks to our ongoing groupwide efforts to implement cashflow-based thinking, which have strengthened our business base and are now beginning to bear fruit. However, at this stage the uncertainty in the global economy shows no signs of resolving itself, so we must remain vigilant.
The Year 2020
In Japan, 2020 is also known as the year of "Kanoene"(Note), which is said to be a good year for maintaining past successes while building up reserves to face new challenges. We have been continuously enacting reforms to enhance corporate value, and in 2020 we will use our results so far as a base to further improve on our strengths and address management challenges. In my mind, MHI's mission is to use our technology, resources and network to propose solutions to the challenges faced by society. We should also expand beyond our mainstay of manufacturing into upstream and downstream business.
Steps Toward Growth
In 2019, MHI Future Stream pointed toward future growth in decarbonization and the evolution of mechanical systems through electrification and intelligent systems. The first pillar of this program, decarbonization, aims to improve the efficiency of existing electricity generation while ushering in renewables such as offshore wind, and to pursue the development of a variety of promising technologies such as hydrogen gas turbines. The second pillar is the evolution of mechanical systems through electrification and artificial intelligence. As machinery moves away from fossil fuels toward electricity, we can expect growth in electric compressors, heat pumps, and other areas of our business. Progress is already being made in the application of artificial intelligence, as demonstrated in MHPS TOMONI and automation in our commercial aircraft factories. The aircraft engine plant in Nagasaki, which is set to come online in 2020, combines expertise from a number of fields into one highly efficient production center. I want us to move forward in 2020 with new products and services based on these exciting trends, and to reallocate and newly invest in people, capital and other business resources in these areas.
To borrow a phrase from Japan's celebrated national rugby team, the MHI Group is "One Team." Each of our businesses and functions has a different position in a different market environment, but they have all built up a professional skillset in their respective fields which they leverage to provide collaborative solutions. The key mindsets for our group are "Think big, start small", "Quick action", "First-person mindset", and "Teamwork" – making the most of our synergies as One MHI.
Mitsubishi Group's 150th Anniversary
2020 marks the 150th anniversary of the founding of Mitsubishi. It is a time for all of the companies in the Mitsubishi Group to reflect on our shared "Sankoryo", or Three Principles, and on how to carry these forward into the future. As one of the core companies in the Mitsubishi Group, I would like for us to think of 2020 as a "second founding," where we go back to basics and work to produce new ideas and new solutions with every passing day.
- Kanoene :The thirty-seventh of the sexagenary cycle which is a cycle of sixty terms, each corresponding to one year, thus a total of sixty years for one cycle.