Mitsubishi Electric and Mitsubishi Heavy Industries Reach a Basic Agreement
to Start Detailed Studies for Business Integration for Power Generator Systems
TOKYO, December 26, 2022 – Mitsubishi Electric Corporation (TOKYO: 6503, “Mitsubishi Electric”) and
Mitsubishi Heavy Industries, Ltd. (TOKYO: 7011, “Mitsubishi Heavy Industries”) announced today that thetwo companies have reached a basic agreement to establish a joint venture to integrate their businesses in fields
focused on power generator systems.
It is expected that Mitsubishi Electric will be the majority shareholder and Mitsubishi Heavy Industries willbe the minority shareholder of the new company.
Climate change caused by global warming has emerged as a common issue worldwide, and efforts to achievecarbon-neutrality, which would reduce greenhouse gas emissions to net zero, are accelerating around the world.
Electricity demand is expected to increase due to economic growth mainly in emerging countries andawareness of energy security, and energy transitions has increased. In the future, existing thermal power
generation will decarbonize its systems with fuel conversion to hydrogen, ammonia, and other carbon-freefuels.
Large-scale power plants that have supported the power infrastructure so far will play an important role as aforce to adjust for the increase in variable renewable energy sources, whose power generation is affected byweather and other factors.
Considering this market environment, Mitsubishi Electric and Mitsubishi Heavy Industries have reached thisbasic agreement to strengthen their market competitiveness further by integrating their respective businesses
and combining their respective technologies and assets. This business integration will create a stronger
partnership than ever before and expand the two companies’ power generator systems on a global scale, thereby
contributing to the realization of a carbon-neutral society.
An overview of this business integration is described in the Appendix. Further details will be announced asthey become available.
Media inquiries
Mitsubishi Electric Corporation
Public Relations Division
prd.gnews@nk.MitsubishiElectric.co.jp
Mitsubishi Heavy Industries, Ltd.
Corporate Communication Department
mediacontact_global@mhi.com

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Appendix

Overview of Business Integration(1) Scope of the business integration
The scope of the integration will include basic planning, design, development, manufacturing, sales andservicing of power generators connected directly to turbines, as well as other key facilities at power
generation plants.
(2) Measure of integration
Businesses subject to the integration will be transferred to a new joint venture company from Mitsubishi
Electric and Mitsubishi Heavy Industries separately, each by way of an absorption-type company split.
The terms and conditions of the integration will be determined by Mitsubishi Electric and Mitsubishi
Heavy Industries in the definitive agreement on the integration.
(3) Overview of the parties to the integration
Company name

Mitsubishi Electric Corporation

Mitsubishi Heavy Industries, Ltd.

Head Office

2-7-3 Marunouchi, Chiyoda-ku,
Tokyo

3-2-3 Marunouchi, Chiyoda-ku,
Tokyo

Representative

Kei Uruma
Representative Executive Officer,
President & CEO
Development, manufacturing, sales,and service of products such as
Infrastructure, Industry and Mobility,
Life and Business Platform

Seiji Izumisawa
President & CEO

Summary of Business

Established
Paid-in Capital

January 15, 1921
175,820 million yen(as of March 31, 2022)

Major products and operations:
Energy Systems, Plants &Infrastructure Systems, Logistics,
Thermal & Drive Systems, Aircraft,
Defense & Space
January 11, 1950
265,608 million yen(as of March 31, 2022)

Shares Issued

2,147,201,551 shares(as of March 31, 2022)

337,364,781 shares(as of March 31, 2022)

Book Closing Date
Major Shareholders andShareholding Ratio

March 31
The Master Trust Bank of Japan, Ltd.
(Trust Account): 16.91%
SSBTC CLIENT OMNIBUS
ACCOUNT: 5.03%
Custody Bank of Japan, Ltd. (TrustAccount): 4.63%(as of March 31, 2022)

March 31
The Master Trust Bank of Japan, Ltd.
(Trust Account): 15.61%
Custody Bank of Japan, Ltd. (TrustAccount): 5.06%
Meiji Yasuda Life Insurance
Company: 2.37%

1,409.08 yen

4,696.42 yen

4,476,758 million yen
252,051 million yen

3,860,283 million yen--

160,240 million yen

279,693 million yen

173,684 million yen

203,482 million yen

113,541 million yen

95.41 yen338.24 yen(as of March 31, 2022)
Operating Results for the Most Recent Business Year and Financial Positions as of the End of the Business Year(FY ended March 2022)
Total Equity
3,097,397 million yen
1,662,529 million yen
Total Assets5,107,973 million yen
5,116,340 million yen

Equity Attributable toShareholders per Share
Revenue
Operating Profit
Profit from Business
Activities
Profit Before IncomeTaxes
Net Profit Attributable toShareholders
Basic Earnings per Share
Attributable toShareholders

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(4) Overview of the new joint venture company
It is expected that Mitsubishi Electric will be the majority shareholder and Mitsubishi Heavy Industries
will be the minority shareholder of the new company. Details of the new joint venture company, including
the investment ratio, will be decided through due diligence and further discussions.
(5) Timeline
December 26, 2022

Execution of basic agreement

Late May 2023 (planned) Execution of definitive agreement
April 1, 2024 (planned)

Closing* Implementation of the planned business integration is conditional upon obtaining clearances,approvals and/or completion of processes required from and by any relevant government agencies
and competition authorities.
** Since both absorption-type company splits of Mitsubishi Electric and Mitsubishi Heavy Industries
constitute simple absorption-type splits as set forth in Article 784, Paragraph 2 of the Companies Actof Japan, it is not expected that approvals of shareholders’ meetings will be required at Mitsubishi
Electric or Mitsubishi Heavy Industries.
(6) Outlook
The impact of the business integration on the business results of Mitsubishi Electric and Mitsubishi Heavy
Industries will be announced when it becomes clear.

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