2024 Medium-Term Business Plan
(FY2024 – FY2026)

May 28, 2024
Seiji Izumisawa, President & CEO
Mitsubishi Heavy Industries, Ltd.
© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

Table of Contents

1. Mission and Vision for Society
2. Review of 2021 MTBP*
3. MHI’s Operating Environment and Expected Roles
4. Strategy and Targets
5. Key Initiatives
6. Strengthen Technologies and Human Capital
7. Promote MISSION NET ZERO

© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

*Medium-Term Business Plan

2

1. Mission and Vision for Society

1. Mission and Vision for Society

Our Mission
Combine cutting-edge technology with many years of expertise to provide
solutions to the evolving challenges facing the world while enriching people’s lives

Our Vision for Society
SafetySecurity Comfort

Safe, Secure, andComfortable World

 Provide realistic solutions tailored to local communities and customers to solve societal
issues Starting with manufacturing, expand our scope of work both up- and down-stream withinvalue chains, form partnerships, and become a hub for ecosystems to change society

Succeed in the global competitive landscape into the future
by realizing our vision for society© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

4

2. Review of 2021 MTBP

2. Review of 2021 MTBP Despite uncertainty in our operating environment, strengthened profitability, achieving record profitsand building strong business and financial foundations
 Through the development of future growth areas, identified commercial opportunities in hydrogen,ammonia, CCUS,1 electrification, and data centers.

2018 MTBP

2021 MTBP Expand to ¥5 tr

 Strengthen
Profitability

 Strengthen Financial
Foundation

 Develop Future
Growth Areas

 Continue Business
Structure Reforms

Revenue(trillion yen)

CAGR3 8%4

Net Interest-Bearing Debt

Business Profit2(billion yen)(billion yen)

4.7

5x4
200.5

660.2 55% reduction

6.1%

4.1
3.7

282.5
381.9

4.9%
54.0

297.7

1.5%
FY18 FY19 FY20 FY21 FY22 FY23

FY18

FY20 FY21 FY22 FY23

FY18 FY19 FY20 FY21 FY22 FY23

© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

1 Carbon dioxide Capture, Utilization and Storage 2 Profit from Business Activities 3 Compound annual growth rate 4 vs. FY20 levels

643. MHI’s Operating Environment andExpected Roles

3. MHI’s Operating Environment and Expected Roles
 Contribute to solving the increasingly complex issues society faces as our operating environmentchanges

Operating Environment

Expected Roles
Contribute to decarbonization

Rising demand for diverse and stabledecarbonized power sources
Expansion of power demand from spread ofgenerative AI and electrification
Growing momentum to strengthen
economic security

Labor shortages in advanced economies

Increasing geopolitical risks© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

 Energy supply side
 Provide stable supply of energy
 Realize energy transitions tailored to local
conditions

 Energy demand side
 Improve efficiency and automate with digitaltechnologies
 Launch environmentally conscious products on
the energy demand side

Contribute to national security
 Strengthen national security withcomprehensive approach84. Strategy and Targets

4. Strategy and Targets
 Strengthen portfolio management leveraging business and financial foundations established during
the 2021 MTBP Strengthen the technologies and human capital that support these efforts, and promote MISSIONNET ZERO

Balance business growth with further profitability improvements
20%¥4.6 tr

Strengthen Portfolio
Management
Strengthen Technologies
and Human Capital
PromoteMISSION NET ZERO≥¥5.7 tr

Revenue
FY23

Business
Profit¥282.5 bn

60%≥¥450.0 bn
≥8%

6%
FY23

ROE

FY26

11%
FY23

FY26
≥12%

FY26

Exchange rates assumptions: ¥140/USD, ¥150/EUR© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

10

4. Strategy and Targets: Strengthen Portfolio Management
 Focus on GTCC,* Nuclear Power, and Defense, and fulfill our expected roles in each market
 Accelerate efforts to achieve a Carbon Neutral world
 Strengthen both profit and cash flow generation capabilities

Focus Areas

Strategy(1) Ensure Steady
Performance in
Growing Core
Businesses• Contribute to stable supply ofenergy and national security• Strengthen execution capabilities
through concentrated allocationof resources(2) Commercialize
Future Growth
Areas• Contribute to decarbonization ofboth energy supply and demandsides• Form strategic partnerships• Strengthen profitability(3) EnhanceBusinesses’Competitiveness

Expand sales by strengthening
customer relationships
Expand services through digitaltransformation (DX)• Develop technologies to maintaincompetitive advantages• Optimize business organization© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.
*Gas Turbine Combined Cycle

Revenue (tr yen)

Businesses
GTCC

1.6

FY23

2.6

Nuclear Power
DefenseFY26

Energy Transition
Smart Infrastructure

3.0

3.1

Logistics, Thermal & Drive Systems

FY26

Pages
17-20

Energy Systems
Plants & Infrastructure Systems

FY23

Pages
13-16

Pages
21-23

Aircraft, Defense & Space11

4. Strategy and Targets: Capital Allocation Plan
 2021 MTBP: Reduced interest-bearing debt and allocated funds to build a strong financial base 2024 MTBP: Invest ¥1.2 trillion, of which ¥650 billion will be allocated to growing core businesses
and future growth areas
 Significantly increase shareholder returns
Cash Inflows(3-year total)(billion yen)

Asset Sales,
Others 110
Debt
Repayment,
Others420

Asset Sales,
Others310

Normalized1
Operating CF
1,020

Capital Allocation(3-year total)

Normalized1
Operating CF
1,400

330

Competitiveness
Enhancements

Shareholder
Returns 2

2024
MTBP
24 MTBP© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

1 Cash flow 2 Includes dividends to non-controlling interests

650~¥1.2 tr

Growing Core
Businesses &Future Growth
Areas

430

2021
MTBP
21 MTBPGrowing Core
Businesses &Future Growth
Areas

150

2021 MTBP
2021
MTBP

Competitiveness
Enhancements

580

Shareholder
Returns 2

2802024 MTBP
2024
MTBP
12

5. Key Initiatives(1) Ensure Steady Performance in
Growing Core Businesses

5-(1) Ensure Steady Performancein Growing Core Businesses: GTCC
 Enact strategies based on market needs to further increase global market share

Opportunities during 2024 MTBP
Market EnvironmentHigh output, high efficiency models now mainstream.
Market to grow at a certain rate through 2030.






Demand for decarbonized fuel conversions stimulated
by CO2 emissions regulations
Demand for load-following power to stabilize grids
amid expansion of renewable energy
Demand for on-site power generation for data centersand semiconductor plants

Demand for hydrogen and ammonia combustion to ramp up

MHI’s Strengths
High performance, large frame gas turbines
High reliability through pre-launch testing at utility-scale,in-house demonstration plant
Optimized operation with CO2 capture systems
Validation of future hydrogen and ammonia fuel conversion
technologies outpacing competitors© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

Initiatives to Strengthen Business
Strengthen Supply CapacityImprove business execution capabilities by expanding
facilities and personnel

Actively Invest in R&DDevelop technologies to solidify competitive advantages
in pursuit of a decarbonized world

Propose Services Utilizing Vast Operations Data

Propose effective maintenance utilizing data obtained
through remote monitoring products (TOMONI®)

Further Global Market Share Growth
Maintain top market share held since 2022

33%

Grow
Share

Left: CY2020-2022 actual annual
market size (McCoy)
Right: CY2023-2027 annual
market size forecast,
MHI order volume based on
2024 MTBP period average*Large frame gas turbine output
range (excl. mechanical drive
applications)145-(1) Ensure Steady Performancein Growing Core Businesses: Nuclear Power Against the backdrop of Japan’s policy to utilize nuclear energy, steadily pursue initiatives in avariety of areas to expand our business

Opportunities during 2024 MTBP
Market EnvironmentJapan’s Basic Policy for the Realization of GX1
includes the utilization of nuclear energy

Investment appetite increasing for nuclear power asa means to achieve Carbon Neutrality and maintainstable power supplies

Initiatives to Strengthen Business
Strengthen Supply Capacity


Actively Invest in Facilities and R&D
Business ExpansionSupport PWR2 and BWR3 restarts and SSFs4
constructionSupport establishment of the nuclear fuel cyclePerform maintenance work for long-term, stable plant
operation



Export equipment for existing and new plants outside
Japan



Continue design work on Advanced Light Water
Reactor SRZ-1200®

Develop fast reactor and high temperature gas-cooled
reactor technologies

Expand personnel to enable parallel execution of current
projects and development of fast reactors and hightemperature gas-cooled reactors

Develop technologies through government-led projects,
and update and enhance production facilities

Support Maximum Utilization of Existing PlantsSupport availability improvements, operation enhancements,
and preventative maintenance with a view to long-term plant
operation© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

1 Green Transformation 2 Pressurized Water Reactor 3 Boiling Water Reactor 4 Specialized Safety Facility155-(1) Ensure Steady Performancein Growing Core Businesses: Defense Expand business by responding to sharp increase in national security needs in Japan

Opportunities during 2024 MTBP
Market EnvironmentJapan’s defense budget increasing due to risinggeopolitical risks

New defense equipment with advanced capabilities
to be introduced

Business Expansion
Stand-off defense (in all domains: air, land, andsea)



Integrated missile defense

Next-Generation Fighter Aircraft development

Unmanned asset defenseSpace domain

Initiatives to Strengthen Business
Strengthen Supply Capacity


Increase personnel by around 30%, including optimization ofinternal human resource utilization.
Increase development and production capacity to enable revenue
increases.

Promote International Joint Development
Participate in Global Combat Air Programme promoted by
GIGO*

Actively Invest in R&D

Get head start on next-generation fundamental technology
development

Responding to needs for unmanned aerial, underwater, andground vehicles
Needs for space asset utilization enabling communications,navigation, and information gathering© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

Type-12 Surface-toShip Missile(Cornerstone ofstand-off defense)

Next-Generation Fighter Aircraft concept art (Courtesyof Japan Ministry of Defense)

16*GCAP International Government Organisation: An intra-governmental organization promoting the Global Combat Air Programme (GCAP), in which Japan, UK, and Italy are participating5. Key Initiatives(2) Commercialize Future Growth Areas

5-(2) Commercialize Future Growth Areas: Hydrogen and Ammonia
 2021 MTBP: Achieved FID1 for the world’s largest hydrogen production, storage, and supply
project.2 Also worked to develop hydrogen and ammonia gas turbines, hydrogen production
systems, and other products.
 2024 MTBP: Through our new organization, GX Solutions, participate in projects around the world,and form strategic partnerships to build hydrogen and ammonia value chains
1 FID: Final Investment Decision 2 Advanced Clean Energy Storage: Project to produce 100 tons/day of green hydrogen for underground storage and supply to gas turbine power plant

2021 MTBP

2024 MTBP Participated in hydrogen production, storage, and supply projectin Utah, US. Facilities now under construction (~80% complete) Project in Utah, US to reach completion, and power generation withhydrogen co-firing at commercial plant to begin
 Validate 100% hydrogen and ammonia firing in small and mid-size
gas turbines, and 50% hydrogen co-firing in large frame gas turbines
 Establish business model using hydrogen-related and othertechnologies
 Form strategic partnerships, and pursue realization of projects,
including hydrogen hubs in US and ammonia bunkering projectin Singapore

 Built Takasago Hydrogen Park and Nagasaki Carbon Neutral
Park in Western Japan.
Worked to develop hydrogen production systems andhydrogen/ammonia gas turbines.
 Two hydrogen hub projects with MHI involvement were
nominated to receive funding from the US Department of Energy

Core Technologies & Products

HydrogenAmmonia
100% ammonia-fired
gas turbine
Ammonia carrier

SOEC3

AEM4

Methanepyrolysis

Hydrogen-fired
combustor

Hydrogen project in Utah, US

Ammonia tank terminal

World’s first ammonia bunkering project in Singapore(Signed MOU in 2022 aiming to realize project)

Ammonia-fueledship

Combine core technologies and products to build hydrogen and ammonia value chains© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

3 SOEC: Solid Oxide Electrolysis Cell 4 AEM: Anion Exchange Membrane18

5-(2) Commercialize Future Growth Areas: CCUS
 2021 MTBP: In addition to responding to many inquiries, developed core technologies and products necessary torealize CCUS. Partnered with ExxonMobil and others, a first step in building a CCUS value chain.
 2024 MTBP: Through the efforts of GX Solutions, aim to scale business by achieving FID in projects with MHI
involvement, and by increasing strategic partnerships through technology licensing both inside Japan and aroundthe world2021 MTBP

2024 MTBP Responded to inquiries and participated in FSs1 for many
CO2 capture projects in a variety of industries (>50 projects)

 Receive subsidies from the US Department of Energy, and achieve
FID on leading projects such as CCUS hubs and clusters in UK Worked to develop core technologies and products such asa new absorbent, a modular CO2 capture system, an LCO2 carrier,a CO2 compressor, and synthetic fuels Develop next-generation CO2 capture technologies, and build service
infrastructure, including for remote monitoring, in order to enhancecompetitiveness Created CCS solutions organization through alliance with ExxonMobil.
Partnered with licensees around the world.

 Participate in JOGMEC2 Advanced CCS3 Projects
Photo courtesy of Infinium

CO2 Capture

CO2 capture system(process, absorbent)

Modular system
CO₂MPACTTM

Transport

StorageUtilization

LCO2 carrier

CO2 compressor

Incl. synthetic fuels and chemicals

Build a CCUS value chain© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

1 FS: Feasibility Study 2 JOGMEC: Japan Organization for Metals and Energy Security 3 CCS: Carbon dioxide Capture and Storage19

5-(2) Commercialize Future Growth Areas: Electrification and Data Centers 2021 MTBP: Prepared for commercialization in the electrification and data center areas bydeveloping and validating new technologies, and acquiring a services company in US 2024 MTBP: Proceed with commercialization by combining MHI products as well as our partners’

2021 MTBP

2024 MTBP

Identified electrification and data centers as important megatrends

Fully enter data center and electrification markets

 Targeted one-stop solution combining power supply, cooling,
and control systems

 Promote one-stop solutions business combining power supply
with cooling systems

 Validated immersion cooling and power supply system technologies

 Apply on-site power generation systems according to power demand Acquired Concentric, LLC as North American service location

 Build energy management product to optimize entire systems
 Further strengthen service network

On-Site Power Generation

GTCC

UPS1 and ESS2

Emergency generator

High-Efficiency CoolingHighly Intelligent
EMS3
Smart Connections

Large centrifugal chiller

Free cooling

Immersion cooling

Leverage thermal and electric engineering technologies to provide one-stop decarbonization andenergy conservation solutions, combining energy supply, cooling, and highly intelligent EMS systems© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

1 UPS: Uninterrupted Power Supply 2 ESS: Energy Storage System 3 EMS: Energy Management System

20

5. Key Initiatives(3) Enhance Businesses’ Competitiveness5-(3) Enhance Businesses’ Competitiveness Initiatives to strengthen profitability:
 Strengthen customer relationships and expand sales in our competitive areas
 Apply latest tools including AI and digitalization technologies to strengthen service capabilities

Examples of 2024 Initiatives

Strengthen
Profitability
Expand sales
by strengthening
customer
relationships

 Strengthen and expand direct sales organizations in
HVAC, Logistics Systems, and others
 Establish position as system integrator by providing coretechnologies and design services in Metals Machinery,
Commercial Ships, and others

Machinery Systems AI remotemonitoring and operational support
system MaiDAS®

 Enhance O&M1 with remote monitoring and automation
technologies in Environmental Systems, HVAC, and others

Expand services
through DX

 Respond to customer needs and potential problems
using AI-enabled failure prediction and preventative
maintenance in Machinery Systems and others

Aero Engines MRO2

 Share in-house best practices (MHI digital products for image
monitoring and audio instruction) in Metals Machinery with otherbusiness (such as Transportation Systems)
 Strengthen after-sales services in Commercial Aviation andAero Engines© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

1 Operation and Maintenance 2 Maintenance Repair and Overhaul

CRJ70022

5-(3) Enhance Businesses’ Competitiveness Enhance competitive advantages by developing decarbonized products and automation solutions
 Optimize business structures by consolidating business locations and reallocating resources tofocus areas

Examples of 2024 Initiatives

Developtechnologies tomaintaincompetitive
advantages

Develop technologies for the decarbonization ofsteelmaking processes

Launch automation products in Logistics Systems andothers, which coordinate equipment and operators using
ΣSynX® (read as “Sigma Syncs”)

Develop products using natural refrigerants such asheat pumps

Develop clean fuel-compatible products such as engines

New forklift model enabled with ΣSynX®

CO2 refrigeration condensing unit using CO2
refrigerant (C-puzzle series, 10-80 hp)

Optimize businessstructures

 Consolidate and optimize production bases and sales
networks
 Reallocate resources to focus areas by improving
operational efficiency and productivity© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

23

6. Strengthen Technologies andHuman Capital6. Strengthen Technologies and Human Capital Combine core technologies accumulated through experience with newtechnologies, and utilize in new product development
 Establish a scalable business model through technology licensing

Cutting-Edge Technologies
in New Areas
incl. AI and quantum technologies

Core Technologies
Fundamental technologies andmanufacturing techniques accumulated
and refined through experience© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

Create new customer value
 Maximize hardware potential
with digital technologies

Build licensee network basedon IP strategy
 Scale business throughstrategic partnerships
 Expand monetization
opportunities with licensing
business25

6. Strengthen Technologies and Human Capital:Digital Technologies
 Improve convenience of common infrastructure using long-standing know-how and the latest knowledge developed
into standardized tools
 Develop products that enhance existing product functions, such as intelligent integrated monitoring, operation, andmaintenance, and share among businesses Create new value by promoting an ecosystem that intelligently connects diverse machinery and products

Smart Connections
Standardized Tools

Products1

AI

Optimization

Ecosystem2
Transportation

Plants and Infrastructure

HVAC

OT
ControlCommunication
Scheduler

Data Analytics

Sensing Indication Detection

Common Infrastructure(Internal R&D)

Industrial
Machinery

Logistics

Integrated
Monitoring

Energy and Environment

DI3 to Enhance Existing Product
Functionality

From Products to System Services(Solutions to societal challenges, future vision)(Customer Value)

Security
New technologies
or societal needs© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

×Technology Foundation
Technology
Materials, Strength, Fluids

Products

4

OT (Control)
Machinery and Communication Control

Data (IT)Design, Operation, Industry

26

1 Products: Functionality/services enabled by connecting machinery/products to standardized tools 2 Ecosystem: Services enabled by connecting Products/standardized tools to machinery/products 3 Digital Innovation 4 Operational Technology

6. Strengthen Technologies and Human Capital Strengthen the recruitment and development of human resources, and reallocate resources tofocus areas
 Aim to cultivate 20,000 DI-proficient personnel by 2030
 Improve employee engagement by providing opportunities for growth and improving work styles

Strengthen human capital in accordance with business unit strategies
Strengthen Recruitment
and Development



Diversify recruitment methods(Incl. strengthening recruitment
branding, starting use of Americanand European recruitment platforms,
and alumni recruitment)
Visualize and develop personnel
requirements,
Establish HR cycle(Utilize global HR systems,
renew education systems)© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

Reallocate Resources

Improving human resource
mobility(Visualize talent across Group,
promote internal recruitment)Support for employees taking on
new challenges(Incl. promotion of internal andexternal secondment programs)

Work Style Improvements


Develop work environment inwhich diverse personnel can
actively participate

Promote flexible workstyles
adapted to each stage of life27

7. Promote MISSION NET ZERO

7. Promote MISSION NET ZERO Work toward achievement of MISSION NET ZERO in order to realize a sustainable, safe, andsecure world Acquire plant decarbonization know-how at Mihara Machinery Works, which is pioneering these
initiatives. Then, reduce emissions across the company by sharing these techniques with otherplants within the Group.

Mihara Carbon Neutral Plant
 Efforts to reduce CO2 emissions:
97.7% reduction (vs. FY2021 levels) through installation ofsolar panels, energy conservation, and streamlining
 Acquire practical plant decarbonization know-how:
Acquire know-how for creating plant decarbonization road-maps(including MAC1 curve techniques and factory decarbonization
organizations)

Energy conservation and streamlining of facilities, procurement of carbon-free power, and other initiatives

Scope 1 Initiatives

Scope 2 Initiatives

Energy conservation, streamlining, and electrificationReduce boiler operation
Convert boilers to heat pumps
Utilize decarbonized fuel co-firing
during product testing
and commissioning© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

1 Marginal Abatement CostInstall LED lighting
Reduce air conditioner load,
upgrade inverters
Operation optimization, consolidation,and upgrade of machine tools

Decarbonization ofelectricity supply

Decarbonization of electricity through Energy
Transition and installation of solar panels at
Group plants
29

Appendix

FY2026 Targets
 Leveraging the business foundation established during the 2021 MTBP, aim to balancebusiness growth with further profitability improvements during the 2024 MTBPFY2023

FY2026¥4.7 tr≥¥5.7 tr¥282.5 bn≥¥450.0 bn

ROE

11%

≥12%

Total Assets¥6.3 tr¥6.3 tr

Total Asset Turnover

0.8

0.9

Debt/EBITDA Ratio

1.7x

≤1.7x

Dividend per Share1

¥20

¥26

-42%

-47%

Revenue
Business Profit(%)

CO2 Emissions Reduction:
Scopes 1& 2
(CO2 emissions volume)(6%)(vs. 2014 levels)(557 kton-CO2)© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

1 Historic dividends shown here retroactively adjusted to 1/10 original value to reflect 10-for-1 stock split effective April 1, 2024(≥8%)(505 kton-CO2)

31

Shareholder Return Policy Adopt dividend on equity ratio (DOE) as our shareholder return policy to achieve a progressive
dividend in the medium to long term

DOE Adoption Concept
 Balance dividend increases with stable dividends according to profit growth
 MHI’s cost of capital is recognized to be around 8%. Our DOE target is 4% or above, which is more than half thecost of capital.

Annual Dividend per Share1

Targeting ≥4% DOE

(yen)

8
FY20

10
FY21

13
FY22

20

22

FY23

FY24 (plan)26

 Adopt DOE based on shareholder
capital (excl. OCI2)
 Planning a ¥22 full-year dividendin FY24, a ¥2 increase over FY23
 Planning a ¥26 full-year dividendin FY26

FY26 (plan)

1 A stock split was enacted on April 1, 2024. To facilitate comparison, dividends through FY23 are shown here retroactively adjusted to reflect the stock split.
2 OCI: Other comprehensive income (foreign currency translation adjustments, other valuation adjustments, etc.)
3 DOE: Dividends paid ÷ Shareholder equity (excluding OCI)
© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

32

Business Highlights

Energy Systems

Developing Hydrogen Gas Turbines,
Operated Commercial Unit with
Hydrogen Fuel Co-Firing

Selected as Core Company in Charge ofDemonstration Fast Reactor Design andDevelopment

Built Nagasaki Carbon Neutral Park
as a Development Base for Energy
Decarbonization Technologies• Successfully executed 30% hydrogen fuel co-firing in a stateof-the-art JAC series gas turbine at Takasago Hydrogen Park
GTCC demonstration plant• Began 100% hydrogen fuel combustion tests at the samefacility using a small to mid-size H-25 series gas turbine• Undertaking conceptual design and R&D of sodium-cooleddemonstration fast reactor aiming for start of operation in
2040s• Also pursuing development of demonstration high temperature
gas-cooled reactor as core company aiming for start ofoperation in 2030s.

• Developing fuel production and combustion technologies,
aiming for increased use of hydrogen, biomass, and ammonia• Existing development, design, and production bases in
Nagasaki District will be utilized to provide solutions
contributing to the realization of a Carbon Neutral world

Takasago Hydrogen Park Enters
Full-Scale Operation,
Hydrogen Production Begins

Completed Manufacturing of Three
Replacement Steam Generators for
Électricité de France (EDF)

Achieved #1 Global Gas Turbine Market ShareTwo Years Running in 2022 and 2023

• Began hydrogen production with alkaline water hydrolyzer.
Hydrogen production, storage, and usage facilities are linked
together.
• A test module of Solid Oxide Electrolysis Cell (SOEC), a nextgeneration high-efficiency hydrogen production technology,
began operation in spring 2024

• Completed manufacturing of three replacement steam generators(SG) ordered by EDF for a nuclear power plant in France• Will continue to contribute to the safe and stable operation of
nuclear power plants by delivering products with high safety andreliability to markets in Japan and around the world• Achieved world’s top market share on a capacity basis in 2023
for the second consecutive year
• In addition to our long track record, our gas turbine products’
high performance and reliability, as well as their ability to beconverted to hydrogen fuel in the future are highly evaluated© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

Image courtesy of Keppel Infrastructure33

Business Highlights
Developed MAmmoSS®*
Ammonia Handling System for Ships• Aiming to utilize ammonia fuel in the lead up to theachievement of net zero GHG emissions from international
maritime shipping by around 2050
• Built an ammonia handling system demonstration test facility.
Pursuing technology development aiming for commercialization.
*MAmmoSS: Mitsubishi Ammonia Supply and Safety System

Launched Demonstration Experiment for CO2
Capture from Waste-to-Energy Plant Flue Gas
for Use in Methanation

Plants & Infrastructure Systems
Established New Technology for Hydrogen
Society• Pilot plant for HYFOR process – which directly reduces iron ore
fines with hydrogen – is in operation. Now proceeding with final
preparations for a commercial prototype.
• Received the National Prize for Innovation in Dec 2023 from theAustrian government for contributions to sustainable economic
development. This is the most prestigious award of its type inAustria.

Contributing to Regional Economic
Development and Improved Convenience with
New APM Systems and O&M

Participating in Japanese Advanced CCS
Project upon Selection by JOGMEC Program*• The Tohoku Region West Coast CCS initiative, which was
proposed jointly by seven companies, including MHI, wasofficially selected, and full-scale efforts aiming to realize a CCS
program in Japan began*Japan Organization for Metals and Energy Security (JOGMEC)’s FY23
program, Study on Execution of Advanced CCS Projects

Japan’s First Full-Scale Seismic Isolation
Testing Machine: E-Isolation

機械S• Began first domestic joint validation of CCU* with regional
cooperation (Yokohama City, Tokyo Gas, and MHI)
• The project will utilize power generated during the incinerationof waste as renewable energy*CCU: Carbon dioxide Capture and Utilization© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

• Received multiple orders for new installations, extension work, andO&M for new Automated People Mover (APM) systems(Incl. Light Rail Transit (LRT) in Macao and APMs in Orlando andDubai)• Contributing to elimination of congestion caused by increasing
populations and tourism, as well as improved convenience oftransportation• Japan’s first device capable of testing full-sized seismic
isolation bearings used in high-rise buildings and large bridges• Through the development of this testing machine, we arecontributing to the advancement of customers’ R&D as well as
the realization of a society where people can live more safely
and conveniently

34

Business Highlights

Logistics, Thermal & Drive Systems

Received First Order from Kirin Group forIntelligent Logistics Product

One-Stop Solution for Refrigerated
Warehouses Utilizing Comprehensive
Capabilities

Began Operation of Automated Truck Loading• Booked first order for an automated picking solution product from Kirin
Group• The system utilizes a proprietary optimization engine and control system
to efficiently coordinate AGFs*, palletizers, and other equipment toperform transfer and picking tasks• Will expand scope of automation to inbound and outbound shipping areas
to contribute to solving societal challenges such as labor shortages• This solution proposes optimized facilities and buildings with operation
analysis based on integrated engineering and thermal simulations. Also
improves cooling efficiency and reduces power consumption by
optimizing facilities and operations• Working to launch this new business, thereby expanding business within
Japan. Considering demand in international markets, including Southeast
Asia, as well.

• Logistics services provider Konoike Transport began operationof automated truck loading provided by MHI in May 2024
• The system addresses issues such as the shortage of forklift
operators and the need to reduce truck dwell time, and will
help address the effect of regulatory changes that have limited
truck driver overtime since April 2024

Launched High-Output Engines for Data Centers,
Accelerating Development of Low- to
Zero-Carbon Engines

Strengthening Sales Activities for Hybrid
Vehicle-Use Turbochargers*Automated Guided Forklift

Measures to Eliminate Boilers through Conversion
to Industrial Heat Pumps Awarded
The Energy Conservation Center, Japan Chairman’s Awardin Best Practice Category

Hydrogen generator set fortechnical evaluation

2.4 MW electronicallycontrolled engine• Moving to industrial heat pumps as production heat sources
eliminates boiler usage, saves energy, and improves
environmental performance▸Air sourced heat pump chiller (MSV)▸Air to water circular-heating heat pump (Q-Ton Circulation)▸High temperature wind generator (Neppu-ton)© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

• Launched high-output electronically controlled engine for data
centers, the global market for which is rapidly expanding• Accelerating test research on engines compatible with low- to
zero-carbon fuels, included engines able to use methane
produced by methanation, mixtures of hydrogen and other fuels,and 100% hydrogen

Variable geometry (VG) turbocharger••

Demand for turbochargers, especially for hybrid vehicles, hasrecently been solid, in part due to a slowdown in global
battery electric vehicle (BEV) sales
Working to capture demand for hybrid vehicles bystrengthening technology proposal capabilities, expanding
our product lineup, and enhancing pricing competitiveness35

Business Highlights
Missile Programs

Aircraft, Defense & Space
Next-Generation Fighter Aircraft Joint
Development among Japan, UK, and Italy

MHI Aerospace Vietnam Celebrates 15th
Anniversary of Founding• The governments of Japan, UK, and Italy signed the Convention
on the Establishment of the Global Combat Air Programme –GCAP International Government Organization (GIGO)• MHI is supporting the three countries’ governments together with
BAE and Leonardo in this program• MHI Aerospace Vietnam, which produces such products
as the wing flaps for the Boeing 737 (3,590 total
shipments to date), celebrated the 15th anniversary of its
founding. The company also recently began productionof emergency doors for the Airbus A321.

Stand-off defense

Integrated missile defense• Steadily promoting missile business, which has received
large orders recently• Increasing development and production capacity tocontribute to national security
Image by MHI based on “DEFENSE of JAPAN” (Japan Ministry of Defense)

Unmanned Asset Defense Program

unmanned aerial
vehiclesunmannedunderwater vehicle

Image from “DEFENSE of JAPAN” (Japan Ministry of Defense

H3 Launch Vehicle Program

MHI RJ Aviation Builds New, Cutting-Edge
Distribution Center for Aircraft Parts near Fort
Worth International Airport in Dallas

unmannedground vehicle• Launched unmanned aerial, underwater, and groundvehicle technology divisions• Working to analyze customer needs and expand
business© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

• Successfully launched second test unit
• Expanding business by increasing reliability anddecreasing costs• Signed logistics partnership agreement with Kuehne +Nagel to support supply of aftermarket aircraft parts,
establishing a global distribution base, which began
operation on May 13, 2024

36