HX

Human Resource and
Healthcare Transformation

GX

Green Transformation

DX

Digital Transformation

Mitsubishi
Research InstituteGroup Report2023

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

Company Profile

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Who We Are

Mitsubishi Research Institute, Inc.

Mitsubishi Research Institute DCS Co., Ltd.

Head officeBusiness profile

IIn addition to its extensive experience in the design, development, and administration of systems for financial institutions,theMitsubishi
Institute,
Mitsubishi Research Institute DCS We,
also excels
in system
and business Research
process outsourcing
services based on its own data center. In
recent years it has enhanced its support for clients’ digital transformation initiatives by creating cloud environments and byareaJapanese
think
tank.
introducing new technologies such as AI, RPA, data analysis, and robotics.
12-2, Higashishinagawa 4-Chome, Shinagawa-ku Tokyo
140-8506, JapanFor over half a century, we have

10-3, Nagatacho 2-Chome, Chiyoda-ku, Tokyo
100-8141, Japan

Date of establishment

May 8, 1970

Representative directors

Kenji Yabuta, President
Yasuteru Hirai, Executive Vice President

Head office

Chairman of the Institute

Hiroshi Komiyama

Date of establishment

Capital stock6.336 billion yen

Representative director

Number of employees

1,150 (non-consolidated)
4,428 (consolidated) (as of September 30, 2023)

Capital stockGroup companies

Mitsubishi Research Institute DCS Co., Ltd.
MRI Business, Inc.
MRI Research Associates, Inc.
MPX, Inc.
MRIA International Inc.

Group Companies

Number of employees

MRI Business, Inc.

Share-related information (as of September 30, 2023)
Authorized shares:

Business profile

Principal shareholders (Top 11 shareholders)

60,000,000

Number of shares issued: 16,424,080

Number ofsharesShareholding
ratio (%)

The Master Trust Bank of Japan, Ltd. (trust account)

1,868,900

11.64

Mitsubishi Corporation

975,076

6.07

Mitsubishi Heavy Industries, Ltd.

975,000

6.07

Mitsubishi Electric Corporation

902,200

5.62

Mitsubishi Research Institute Group
Employee Shareholding Association

792,380

4.93

Mitsubishi Chemical Corporation

624,000

3.88

Mitsubishi Materials Corporation

554,600

3.45

Custody Bank of Japan, Ltd. (trust account)506,900

3.15

MUFG Bank, Ltd.

505,074

3.14

AGC Inc.

447,500

2.78

Mitsubishi Estate Co., Ltd.

447,500

Shareholder’s name

Number of shareholders: 8,703
Shareholder composition
Central and regional
government entities

Individuals
and others

19.94%

0.01%

Financial
institutions

25.68%

Foreigninstitutions andindividuals

16.12%

Securities
companies

1.22%

Other domestic
companies

provided the public and private
sectors with research and consulting
6.059 billion yen
services in fields spanning energy,
2,297 (non-consolidated)the environment, healthcare, human
2,996 (consolidated) (as of September 30, 2023)
resources, and digital transformation.
July 10, 1970

Hiroki Kameda, President & CEO

MD Business Partner Co., Ltd.
MRI Value Consulting & Solutions Co., Ltd.
IT-One Co., Ltd.

We build real-world solutions with
our Group companies and business
partners, and propose public policies
As an outsourcer for the MRI Group,
Businesstheseprovides corporate
project
support, including general administration,
toMRI
guide
effortsandformaximizing
facility management, procurement management, and human resource processes. It also offers business support in various
socialimpact.
other areas, such as document design,
eventsmanagement, video production, and merchandise.

Head office10-3, Nagatacho 2-Chome, Chiyoda-ku, Tokyo
100-0014, Japan

Date of establishment

October 1, 1970

A publicly traded company, we
stringently maintain an independent
Representative director
Naoko Sakamoto, President
position, which has enabled us to
Capital stock
60 million yen
develop an interdisciplinary network
Number of employees
92 (as of September 30, 2023)
with members of industry, academia,
and government. We act as a hub
MRI Research Associates, Inc.
connecting all sectors to overcome
Business profile
MRI Research Associates’ core activities
are surveys, analysis,complex
and consultationin fields that include
national spatial policy, regional andincreasingly
societalissues.
urban planning, transportation and telecommunications, healthcare, long-term care, welfare, disaster prevention, safety, theenvironment, and energy. Services span data analysis, statistical analysis, and simulation relating to natural and societal phenomena.

Head office

We envision
the future, resolve societal
10-3, Nagatacho 2-Chome, Chiyoda-ku,
Tokyo
100-0014, Japan

2.78

Date of establishment

May 31, 1984

(Notes)1. The shareholding ratio is calculated after deducting treasury stocks (380,483 shares)
2. The number of treasury stocks does not include Company stock (141,146 shares) owned by Board
members’ compensation BIP trust

Representative director

Hirofumi Suzuki, President

Capital stock

60 million yen

Number of employees

175 (as of September 30, 2023)

issues, and lead change to build
a sustainable and prosperous world.

Shareholder composition
Number of shares Shareholding
held (thousands
ratio (%)
of shares)

Number ofshareholders

Composition
ratio (%)

Central and regional
government entities

1

0.01

1

0.01

Financial institutions

19

0.22

4,218

25.68

Securities companies

26

0.30

199

1.22

Other domestic companies

115

1.32

6,081

Foreign institutions andindividuals

179

2.06

Individuals and others

8,363

96.09

37.03%

Total

8,703

100.00

MPX, Inc.
Business profile

In addition to providing a platform for the analysis of wholesale electric power markets, MPX, Inc. also offers services that include
market risk management for electric power businesses, and the valuation of renewable energy power sources. It uses original,
advanced modeling technology and solutions to support the businesses of its clients.

Head office

GRANBIZ Tokyo Nihonbashi 5F, 10-5, Nihonbashi 2-Chome,
Chuo-ku, Tokyo 103-0027, Japan

37.03

Date of establishment

October 1, 2022

2,648

16.12

Representative director

Gen Arao, Representative Director and President

3,275

19.94

Capital stock

90 million yen

Number of employees

10 (as of September 30, 2023)

16,424100.00Note: the number of shares is rounded down to the nearest hundred

1 99
Mitsubishi
Research
Institute
Mitsubishi
Research
Institute
GroupGroup
ReportReport
2023 2023

2 100

Mitsubishi
Research
Institute
Mitsubishi
Research
Institute
GroupGroup
ReportReport
2023 2023

Our Core Competence

As a Corporate Group Leading Societal Change for the Future

Perspective

to paint a picture of
the proper
path forward

1970—MRI was founded as an independent,
multidisciplinary, future-oriented think tank for finding
solutions to the growing number of societal issues that werearising after Japan’s period of high economic growth and forfinding a path forward into a new era.
1980s

1980–2000s

2010s

2020s

Forecasts andrecommendations using
analysis and simulation models

Policy formation using a
multidisciplinary approachcombining industry–government–
academia networks

Assisting customer digitaltransformation with uniqueapproaches for fundamental
problem solutions

Celebrated the 50th anniversary of
our founding
Introduced Recommendations for a societyof 10 billion people and 100-year life spans

CRAY-1 supercomputer

Recommendations to government
ministries and agencies

Launched the DedicatedDX Business Website

The 50th Anniversary Forum

Photo: presentation of findings at the MRI Group Forum 2023

3 Mitsubishi Research Institute Group Report 2023

2023

Hosted the Forum on a New Future for Society
At the November 2023 MRI Group Forum, MRI researchers presented theirfindings under the banner of Trailblazing the Future of the Digital Society, and apanel discussion was held with experts from industry, government, and academia.
The event was well received and included 184 attendees and over 600 viewers of
the live streaming (p. 77).

Using our knowledge base assembled
over the course of five decades—

Imagining the ideal future
in an age of turbulence
Mitsubishi Research Institute Group Report 2023

4

Our Ambition

As a Corporate Group Leading Societal Change for the Future

Perseverance

to see our solutions through tosuccess and take part in theirimplementation ourselves

The 21st century—as the world’s firm commitment tosustainability is being tested, we are stepping up
collaborations both inside and outside the Group toco-create value as we follow our Guiding Principles, whichfeature Our Mission to resolve societal issues.
2000s

2005

2010s

2020s

Demonstration projects
from conceptualization tosocietal implementation

A stronger solutions businessfrom converting Mitsubishi
Research Institute DCS to a
consolidated subsidiary

Evolution to a Think & Act Tank
and launch of the societal
implementation business

Expanded societal
implementation businessfrom the Value Creation
Process (VCP)

Developed and tested regional
digital currency business

Combining comprehensive thinktank knowledge with IT capabilities

Mega-solar power
generation business

2022 Participation in The Nippon
Foundation MEGURI Fully
Autonomous Ship Program

Photo: MRI is one of 51 Japanese companies participating in the consortium under The Nippon
Foundation MEGURI2040 Fully Autonomous Ship Program to develop the technology
and systems needed for the societal implementation of autonomous shipping.

5 Mitsubishi Research Institute Group Report 2023

2023

Medium-Term Management Plan 2026 sets our goals for 2030
With our role as a think tank and IT corporate group growing in these uncertain times, we announced
our goals for 2030—to be a one-stop corporate group from research and recommendations to IT
implementation and services—and Medium-Term Management Plan 2026 (pp. 31–44).

Taking solutions of value, based on
our perspective, to the real world—

A corporate group leading
societal change for the future
Mitsubishi Research Institute Group Report 2023

6

The Source of Our Value Creation

As a Corporate Group Leading Societal Change for the Future

Passionfor resolving societal
issues drives our people

Toward 2030—with determination and passion, we aretaking on the unknown by working with our partners andpublic and private clients to find solutions to increasingly
diverse and complex societal issues.
1970s

1990–2000s

2010s

2021

Launch of a multi-client
macroeconomic project toaddress common problems
in industry

Policy formation in collaboration
with stakeholders spanningindustry, government, academia,
and the private sector

Establishment ofa co-creation platform toresolve societal issues

Expansion of theco-creation platform

Bringing together diverse industry
and business knowledge

Discussion with various stakeholders

Launch of the Innovation Network
for Co-Creating the Future (2017)

Initiative for Co-creating
the Future (ICF)2023

Announcement of our brand message focused on 2030
The source of the Group’s creativity lies in the inexhaustible curiosity and passion of our people and the gradualaccumulation of knowledge that comes from dialogue. To share our employees’ creative ideas with our
stakeholders, we set a new brand message—With all walks of knowledge (pp. 1–2).

Pursuing human potential with passion and with respect
for our partners—

Amalgamating ideas for
greater collective impact
Photo: our diversity and workstyle reform initiatives emphasize dialogue among employees.

7 Mitsubishi Research Institute Group Report 2023

Mitsubishi Research Institute Group Report 2023

8

Our Guiding Principles

Our Mission(What we strive to accomplish)

To resolve societal issues
and co-create a sustainable,
abundant future
Our Mission(What we strive to accomplish)

Our Commitments(What our professionals are dedicated to)Commitment 1

Devotion to Growth

Continually honing our value to society and our customers
We are devoted to providing society and our customers with the solutions necessary to resolve issues.
As professionals, we will continually refine our individual value and encourage one another’s growth in anticipation of
the needs of our customers and of emerging trends in technology and society.
Commitment 2

Collective Knowledge

Acting as a hub between diverse branches of knowledge
Our Vision(How we intend to do it)

Our Vision(How we intend to do it)

Envisioning
the future,
leading change

We bridge diverse branches of knowledge, while respecting individuality and differences, within the MRI Group andsociety at large, in Japan and around the world.
We form new combinations of existing knowledge and promote co-creation between society, customers, and partners.
Commitment 3

A Clear Stance

Using scientific insights to discern the proper path toward the ideal future
We will continually envision the ideal world of the future, conceptualizing and clearly communicating the proper
path to its realization.
In taking a clear stance on the proper course of action, we will be faced with objection and criticism, but we will baseour position on scientific insights, values, and a collaborative spirit of co-creation.
Commitment 4

Taking on Challenges

Transforming the world in new ways
We aim to change the world by leading the way with concrete and swift action.
By taking action and going beyond simply making recommendations, we can break through the barriers delineatedby stubborn precedent and thus earn the approval of society and our customers.

Our Commitments(What our professionals are dedicated to)Commitment 5

Reality

Devotion to feasible recommendations and their implementation
We value practical wisdom gained through experience and strive to make realistic recommendations.
We are devoted to making our recommendations a reality, collaborating with our various stakeholders along the way.

9 Mitsubishi Research Institute Group Report 2023

Mitsubishi Research Institute Group Report 2023

10

Contents and Editorial Policy

ValuesSustainability and Growth Potential
1
3
9

Who We Are
As a Corporate Group Leading Societal Change for the Future
Our Guiding Principles

Human Foundation
Human Resource Strategy: Hiring, Training, and Assignment
Workstyle Reforms and Health-Focused Management
Diversity, Equity, and Inclusion
Intellectual and Co-Creation Foundation
Intellectual Capital
Relationship CapitalSocial Trust Foundation
Environmental
Information Security

To outline the breadth of the MRI Group, we will introduce the perspectives, perseverance, andpassion that MRI has cultivated as core strengths since its founding, together with some of our key
achievements, in relation to our brand message—With all walks of knowledge—which we set in 2023.

Long-Term Vision
Long-Term Vision and Medium-Term Management Plan 2026

31

Medium-Term Management Plan 2026 (MP2026), a three-year plan launched in FY9/24, incorporates
our goals for 2030, including further expansion in the scale of our activities, and enhancement of our
profitability. We have defined hop, step, and jump phases toward the achievement of these goals.
MP2026 is positioned as the hop phase. The strategy that we have adopted based on our long-termtargets is a clear statement of our commitment to growth and our growth narrative.

ValuesLong-Term Vision

Sustainability
and Growth
Potential

13
15
17

Individual wellbeing Digital transformation for

medical and long-term care
Individual wellbeing Human resources
Societal sustainability Renewable energy & circular economy
Technology transforming society Digital infrastructure

Business Models

The Group is engaged in four solutions businesses based on combinations of our Think Tank &Solutions Services and IT Services. Our goal is to use our unique capabilities to provide outcomesthrough an integrated value chain consisting of A) Research & Recommendations, B) Analysis &Conceptualization, C) Design & Testing, and D) Societal Implementation, in close collaboration withour clients, business partners, and Group companies.

Message from the President

19

Business Strategies
Review of Previous Medium-Term Management Plans
Medium-Term Management Plan 2026
Business Strategy
Close-up: Current status of the Digital Innovation Business
Foundation Strategy
Message from Corporate Administration Unit General Manager
Group Structure for Advancing the Business Strategies
Business Unit Strategies

29
33
37
41
43
45
47
49

The specific targets and strategies formulated for MP2026 were developed through backcasting fromour goals for 2030. We have also disclosed our allocations of funds for future growth in the form of ourcapital policy.

Key Indicators
Targets and Indicators for the Three Values
10-year Financial Summary

35
97

The financial, non-financial, and social value indicators shown in this section were developed throughbackcasting from our goals for 2030.

11 Mitsubishi Research Institute Group Report 2023

In this section, we will outline measures to strengthen our intellectual and co-creation foundation andhuman foundation, which are the source of our advantage, and our social trust foundation, including ouractions on the environment and information security, which forms the core of our sustainability strategy.

How We Address Societal Issues

Business Models
Value Creation Model
Value Creation Model: Strengths
Value Creation Model: Sustainability Management

Governance

65
66
69
70
73
73
76
81
81
85

Business
Strategies

How WeAddress
Societal Issues

55
57
59
61

Our business strategy in MP2026 focuses on the creation of social value through the digital transformation(DX) business, the green transformation (GX) business, including energy and the circular economy, andthe human resource and healthcare transformation (HX) business. In this section, we will look at some ofour specific initiatives in these areas.

Governance
Key Indicators

Social Trust Foundation
Governance
Message from an Outside Director
Message from the Chairman of the Board

87
95
96

This section looks at initiatives to enhance our corporate governance, including enhancement of theeffectiveness and diversity of our Board of Directors.

99

Company Profile

Note on editorial policy and forward-looking statements
This Group report was written to provide information about ourongoing activities as a company dedicated to value creation throughthe solution of societal issues under our vision of “envisioning thefuture, leading change”, and the relationship of those activities toour growth strategies, business results, financial position, and otheraspects of business. The report also describes our environmental,social, and governance (ESG) initiatives, which are vital to oursustainable growth, as part of our integrated value creation story.
We compiled this report with reference to various standards,
including the standards of the IFRS Foundation, the International
Integrated Reporting Council (IIRC) framework and the frameworkin the Ministry of Trade, Industry, and Economy’s Guidance forCollaborative Value Creation.
This report is not intended to solicit investment in marketablesecurities issued by Mitsubishi Research Institute, Inc., or toprovide any guarantees or commitments whatsoever. All opinions
and estimates reflect the judgment of Mitsubishi Research Institute,Inc., at the time of compilation. We make no guarantee of or claims
regarding the accuracy and completeness of the information
provided. Readers should be aware that actual results may differ
from the forecasts contained herein.
Period covered
In principle, this report covers fiscal 2023 (October 2022–September2023). However, it also includes some information pertaining tofiscal 2024 (October 2023–September 2024).
Publication
March 2024 (published each year as an annual report)

Mitsubishi Research Institute Group Report 2023

12

Value Creation Model

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

The entire MRI Group is working to realize the Three Values—societal, non-financial, and financial—while continuallyenhancing our capacity to envision and realize a brighter future
Continual investment in capital to support growth

Financial value

Individual wellbeing

A

Financial
capitalB

Research &Recommendations

Material issue

Employees

Analysis &Conceptualization

Shareholders,investors

Using our business torealize a better future
Technology transforming society

Think Tank Function

Non-financial
capitalTrends andsocietal issues
in Japan andglobally

Societal and Public Innovation
Business

Vision for 2070

Public sector
entities

A corporate Group leading
societal change for the future

HumanFoundation
Human capital

Value forour clientsIntellectual and
Co-Creation
Foundation
Intellectual capital
RelationshipcapitalFinancial System Innovation
Business

D

C

Societal
Implementation

Design &Testing

International
and local
communities

Students,
mid-career hires

Social Trust
Foundation

The MRI Group is a unique corporate group offering bothThink Tank & Consulting Services (TTC) and IT Services(ITS). We have restructured our business into four main
fields focused on our clients, including the government,
both central and local, and corporations. Through ouractivities in these fields, we help resolve various issues
affecting these clients and society at large.
In each of our business domains, we respond to issues
by offering a wide range of solution services based onSocial value

Human foundation

Material issue

Our sustainablegrowthIntellectual and co-creation foundation

Social trust foundation

Business partners

Expansion of our recruitment and co-creation network
through the enhancement of our reputation and brand value

Building a prosperous andsustainable society in an era
when world population willreach 10 billion and 100-year lifespans will be commonplace

Privatecompanies

Digital Innovation Business

13 Mitsubishi Research Institute Group Report 2023

Societal sustainability

Non-financial value

advanced, specialist knowledge relating to policies,
systems, and management strategies. Together with ourclients, business partners, and Group companies, weoperate a Value Creation Process (VCP) that delivers
enhanced outcomes through the operation of an integrated
value chain consisting of A) Research & Recommendations,B) Analysis & Conceptualization, C) Design & Testing, andD) Societal Implementation.

Value Creation Process (VCP)
In the past, our activities centered primarily on B) Analysis & Conceptualization and C) Design & Testing. By expanding the scope of our services to encompass
A) Research & Recommendations and D) Societal Implementation, we have further enhanced our capacity to address societal issues.

A

Research &Recommendations

Research into the ideal futureand recommendations forresolving societal issues withreference to global trends

B

Analysis &Conceptualization

Analysis of issues facing ourclients and society;conceptualization ofaccompanying policies andstrategies

C

Design & Testing

Design and testing ofpolicies and strategic
businesses with the aim ofresolving issues affecting
society and our clientsD

Societal
Implementation

Making solutions a reality
for the ideal future,
resolving societal issues

Mitsubishi Research Institute Group Report 2023

14

Value Creation Model: Strengths

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

The MRI Group cultivates unique strengths that go beyond
its think-tank and IT-solution capabilities

Continuous enhancement ofmanagement capital
Diverse and highly-skilled professionals

Accumulated knowledge, expertise,
and achievements

Researchers (MRI + MRI Research Associates)

Human
Foundation

1,135(as of September 2023)

Researchers’ academic specialties (as of September 30, 2023)
Other fields 40

Financial
capitalA

Employees

B

Research &Recommendations

Sociology, education 52
Law, political science,
public policy

83

Analysis &Conceptualization

Shareholders,investors

Societal and Public Innovation
Business
Human
Foundation
Human capital

Public sector
entities

A corporate Group leading
societal change for the future
Privatecompanies

Digital Innovation BusinessIntellectual and
Co-Creation
Foundation
Intellectual capital
RelationshipcapitalFinancial System Innovation
Business

D

C

Societal
Implementation

Design &Testing

Social Trust
Foundation

Management,commerce

62

Think Tank Function

Non-financial
capitalInternational
and local
communities

Students,
mid-career hires

Business partners

Economics 68
Other fields 51

Socialsciences

Mechanical engineering,aerospace engineering 62
Electricity, electronics,
telecoms 49
Information science,systems science 71

305 Total
990 Naturalsciences
685

Environmental
engineering,
environmental studies 74
Resources,materials, metallurgy 27

Architecture,
civil engineering,urban engineering 96
Energy, nuclear
power, physics 92
Chemistry, biology,
agriculture, geology 98

Mathematical engineering,mathematics 28
Administration engineering,
management engineering 37

Qualified IT professionals at DCS(as of October 2023)

24
65
60
64
63
1
19
109
16
534
19
6
26
153

IT strategists
Systems architects
Project managers
Network specialists
Database specialists
Embedded systems specialists
IT service managers
Information security specialists
System auditors
Applied IT engineers
Registered information security specialists
Senior telecommunications engineers
IT coordinators
Project management professionals (PMP®)

Total:

1,159

Intellectual and
Co-Creation
Foundation

Publications, including recommendations, about
resolving societal issues

27
21,563†Publications (news releases):
MMR copies
published:*(FY9/23)

117

Social Trust
Foundation

30.7 %(FY9/23, Group ratio)(FY9/23)†* MMR: MRI Monthly Review (a monthly review of current societal issues,
topics, analytical perspectives, and policy proposals, etc.)

Research Articles(posted on website):Achieving carbon neutrality
Renewable energy ratio†

BCP* structure
Emergency remote working ratio

96.6 %(FY9/23, Group total)* BCP: business continuity plan

(FY9/23, Group total)† Figures for publications in JapaneseSocial trend formation through research andrecommendations (number of interviews with media)

247(FY9/23, Group total)

Networking toward the resolution ofsocietal issues
Number of ICF (p. 77)
startup members
Joint research MOUs*
signed201
23
35(as of December 2023)(FY9/23, Group total)* MOU: memorandum of understanding

Number of startups
fostered (cumulative)(up to FY9/23)

Since its founding, MRI has based its corporate cultureon the pursuit of fundamental solutions that address
the heart of each issue. We achieve this by applying ourcore principles as an independent, multidisciplinary,
future-oriented think tank, including a holistic approach
to issues, prioritization of the realities on the ground,and optimal utilization of specialist knowledge. The
driving force for these activities today is the continuous
strengthening of our intellectual and co-creation
foundation, human foundation, and social trust
foundation. We aim to foster the business mindset
needed to bring the solutions proposed in ourrecommendations and research to the real world.

Continuous focus on originality
A pioneering Japanese think tank with a corecommitment to independence, a multidisciplinary
approach, and future-oriented thinking

MRI was established in 1970 as an initiative tocommemorate the 100th anniversary of the founding of
the Mitsubishi Group. Since then, we have worked as apioneering Japanese think tank to build a prosperous
society through the solution of societal issues. Our corecommitment to independence, a multidisciplinary
approach, and future-oriented thinking, together with ourcapabilities as Japan’s only integrated think tank covering
all fields of science and technology, have enabled us toparticipate in numerous major projects in Japan andoverseas. In the 1990s, we built a solid presence in thearea of policy support for government agencies. In recent
years, we have expanded our activities to include design

15 Mitsubishi Research Institute Group Report 2023

and testing in preparation for societal implementation too.
In 2021, our 50th anniversary year, we updated our
Guiding Principles and redefined our purpose as acompany dedicated to resolving societal issues. Today weprovide solutions not only in specialized areas, such as
the government sector, but also to clients in the financial
sector and a wide range of general industries.

Group-wide business capabilities backed byperspective and perseverance

In 2005, we became a major presence in the IT solutions
business with the acquisition of the company that has
become Mitsubishi Research Institute DCS as aconsolidated subsidiary. Since then, we have accelerated
the development of collaboration between our Think Tank
& Consulting Services and our IT Services. We now
resolve issues affecting our clients and society by providing

one-stop solutions based on the convergence of our two
service categories. In the 2010s, we adopted the “Think& Act” concept as a framework for addressing issues
from a total perspective that encompasses not only the
proposal and design of solutions, but also the societal
implementation phase, including the provision andmanagement of diverse solutions, and participation ininitiatives as a business partner. We combined these
activities into our unique Value Creation Process, or VCP(pp. 13–14), which we have brought across the entire
Group since 2021 under the VCP Management banner.
This worked in tandem with our efforts to expand our
involvement in the real-world implementation ofsolutions. We are using our strengths in the area of public
policy to expand our activities, such as in public–private
partnership projects originating from these policies.

Using diverse knowledge and networks to createcollective impact as a company dedicated tosolutions for the future

MRI today prioritizes effective solutions through the useof industry-government-academia networks spanning awide range of fields to identify the core factors behindeach issue we tackle. One of those networks is theInitiative for Co-creating the Future (ICF), which is aco-creation platform established in the 2010s to pursue
solutions to societal issues. Around 600 entities,
including startups, local governments, central
government agencies, universities, and research
institutes, participate in the ICF, which offers a varietyof co-creation opportunities focused on addressing
issues and creating a brighter future for society.

Mitsubishi Research Institute Group Report 2023

16

Value Creation Model: Sustainability Management

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Pursuit of sustainability management througha positive cycle of three values

The MRI Group’s commitment
to sustainability

Vision for Society

Financial value
Enhancement of
profitability through thecreation of added value
based on our capacity toresolve societal issues

Social value

A resilient andsustainable society

Vision for 2070

Our goals for 2030

Earning the trust ofsociety and our clientsand enhancing our brandvalue through thesolution of societal issues

Non-financial value
Our human foundation,
intellectual andco-creation foundation,and social trust
foundation as sources of
our advantage

A corporate Groupleading societal
change for the future

Building a prosperous andsustainable society in an era
when world population willreach 10 billion and 100-year lifespans will be commonplace

Vision for MRI GroupA company toresolve societal issues

The MRI Group is dedicated to the creation of aprosperous and sustainable society for an era in whichworld population will reach 10 billion and 100-year lifespans will be commonplace. We aim to realize this vision
through the circulation and expansion of three values:social value, non-financial value, and financial value.
We will create social value by expanding client
value through our business activities, and by resolving
societal issues through co-creation with various
partners. This will be driven by our non-financial
value consisting of our human foundation, intellectualand co-creation foundation, and social trust
foundation, which are the source of our advantage.
Our financial value is the rewards that we receive forcreating value for our clients and society. It is thesource of investment in future growth.

The core focus of our sustainability management is toachieve and enhance the sustainability of both the Groupand society, by circulating and expanding these three
types of value.

General Meetingof Shareholders

Supervision

Board of Directors

Setting of targets, etc.

Sustainability Promotion Structure
The tasks of the Sustainable Management Office within the Group Corporate
Planning Division include the planning of sustainability activities, the identification
and review of material issues, and the formulation and administration of targets for
non-financial value and social value. The general manager of the Group Corporate
Planning Division proposes items requiring deliberations and decisions. Afterapproval by the general manager of the Corporate Administration Unit in his capacity
as Sustainability Management Officer, the president as Chief Sustainability Officer(CSO), and the Management Strategy Committee, decisions on these matters are
made by the Executive Committee. The Board of Directors oversees these processes
through the reports that it receives concerning basic sustainability policies andprogress on regular plans.

Person or
Organization

President
CSO

Executive Committee
Corporate Administration Unit

Sustainability Management Officer(General Manager, Corporate
Administration Unit)Management
Strategy
Committee

Group Corporate Planning
Division
Approval of targets, etc.

Sustainable Management Office
Proposal of activity plans, material issues, andgoals regarding non-financial and social value

Identifying material issues along the path to the realization of
our visions for society and MRI
We identify material issues as the basis for the policies
governing management and business activities as part of ourefforts to circulate and expand the three values.
The material issues consist of individual wellbeing,societal sustainability, and technology transforming
society, which are the outcomes that we seek to achieve
as we work toward the creation of a prosperous andsustainable society through our business, together withthe human foundation, intellectual and co-creation
foundation, and social trust foundation, through which
we work to enhance the sustainability of the Group andimprove our ability to resolve societal issues.
Our Guiding
Principles
Cycle through and expand
the three types of value

Building aprosperous andsustainable
world throughour businessSocietal sustainability
Ensuring safety, security, andglobal sustainability

Technology

transforming society
Societal implementation of innovativetechnologies, transformation ofcompanies and society

Human foundation

Non-financial
targets
Non-financial KPIs

Direction and guidelines for
improving the social and non-financial
values that the Group emphasizes inworking toward the society that we
aim to create and the guiding
principles that we aim to fulfill

narrowed down issues in theprocess of formulating our
guiding principles andmedium-term management plan

General societal issues:
from our research, our insights,
and international frameworks

Targets and KPIs that are desirable toachieve in business activities in order
to increase social and non-financial
values, based on material issues(Business KPIs set based on social value
targets)

Importance for the Group17 Mitsubishi Research Institute Group Report 2023

Sustainable improvement of ourpeople and the organization

Our material issues:
Importance for society

Non-financial
value

Social value

Social value
targets
Business KPIs

Individual wellbeing
Ensuring health, self-fulfillment,
and connection(50th Anniversary Research)Medium-term management plan / business plans
Financial targets
Financial KPIs

Material issues

Long-term vision for society

Our Mission
Our Vision
Our Commitments

Material issues
Financial value

In addition to international frameworks andguidelines, our selection of material issues is also basedon a list of societal issues identified through ourcomprehensive analysis and categorization of issues in
the context of our work as an integrated think tank, aswell as the long-term vision for society 50 years in the
future that we developed through our 50th Anniversary
Research Project. Issues are selected through debates
about the social value and non-financial value to which
we should aspire, which form part of the process of
formulating a medium-term management plan every
three years.

Sustainablegrowth of
the Group

Examples of MRI Group initiatives

Relationship to the SDGs

• Healthcare business• Human resources business• Regions and communities
business• Financial & credit card business• ICT business• Energy and circular society
business• Food and agriculture business• Resilience business• Subscriptionbased business• Research &consulting
services• Research &recommendations
work• DX business• Research into cutting-edge
technologies• Focused development of societal
implementation business• Recruiting and training human resources, running theFLAP Cycle®
• Work-life balance, health-focused management• Diversity, equity, and inclusion

Intellectual andco-creation foundation• Research and recommendation activities, accumulationof intellectual property• Customer and business partner network formulation• Group management

Social trust foundation• Risk management and information security• Corporate governance• MRI Group decarbonization initiatives

Utilizing the value of collective
knowledge and our co-creation
foundation
Maintaining and improvingsocial trust in the Group

Mitsubishi Research Institute Group Report 2023

18

Message from the President

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Realistic solutions crafted acrossthe Group for a volatile world
Uncertain times ahead: reaching medium-term
management plan targets
via conceptualization and implementation
Allow me to begin by expressing my deepest
sympathies and condolences to all those affected by
the Noto Peninsula Earthquake of 2024. In the two anda half years since I took office as president, vigilance inthe face of disaster-risk has become a habit, given theincreasing severity of such events. Meanwhile, it seems
that we hear terms like generative AI, economic
security, carbon neutrality, and inflation on a daily
basis, reflecting the increasingly unpredictable future
and changing social environment that impact botheveryday life and corporate management. Personally,
I have also been impressed by the increasing pace ofdigital transformation (DX) over the past year as
viewed through my roles as Chairman of Mitsubishi
Research Institute DCS and as a vice chairman of theJapan Information Technology Services Industry
Association (JISA).
In the Medium-Term Management Plan 2023
(MP2023) of the past three years, we have aimed toprovide complete support for an ideal future, fromconceptualization and proposal to societal
implementation, based on our three management
policies.* Co-creation with our partner networks inindustry, government, and academia has helped
magnify our social impact.

Kenji Yabuta
President andRepresentative Director,
Mitsubishi Research Institute19 Mitsubishi Research Institute Group Report 2023

This enabled us to surpass our ordinary profit targetof ¥10 billion for two consecutive terms of MP2023.
It is also evidence that opportunities for utilizing
our strengths are increasing in parallel with thecomplexity of societal issues. Indeed, we live in an era
where the ability to implement solutions is in greater
demand than ever. Our expanding role in society andthe growing expectations of our customers make mekeenly aware of my responsibility to demonstrate ourcommitment to seizing the opportunities generated
by these turbulent times.
Perspective, Perseverance

pp. 3–6

Review of Previous Medium-Term Management Plans
Value Creation Modelpp. 29–30

pp. 13–14* Three management policies:
VCP Management, coordinated management, and management under the
new normal
VCP: Value Creation Process, in which the Group works together as an integrated
value chain spanning Research & Recommendations, Analysis &Conceptualization, Design & Testing, and Societal Implementation.

Business structure reform continues
Although we have achieved our financial targets,the structural reforms of ambidextrous management
mandated by MP2023 are still a work in progress.
These call for strengthening our core businesses
while building up the growth businesses that will
support our future.
Review of Previous Medium-Term Management Plans

pp. 29–30

In fact, it was this very core-business focus andstreamlining that has driven our performance. In
our research and consulting business, we addressedpandemic-related societal issues and recommended
practices to support the DX trend. In our financial
business, we were able to secure profits by expertly
managing large-scale system projects, among otherendeavors. These, I believe, exemplify thecompany’s inherent strengths.
Meanwhile, expansion of the scale and profitability of
our growth businesses, comprising the future-focused
DX business, subscription-based business†, andglobal business, is lagging. Although the potential isstrong, the return on investment for the final year of
MP2023 was not as high as expected, which was afactor in missing our profit target for FY9/23.

† Subscription-based business:
services not dependent on human resources or time

Mitsubishi Research Institute Group Report 2023

20

Message from the President

Value Creation Model

Further acceleration of integrated
Group management
As we move toward integrating management acrossthe entire Group, we still need more progress inconsolidated management of our company and DCS.
There are inherent differences in the approaches
and roles of MRI, which is strong in consulting
services, including policy and strategy
recommendations, and the IT group companies,
comprising DCS, INES, and JBS, which specialize inIT system infrastructure. MRI, which originated asa think tank, takes a macro-level view of the world,
analyzing societal issues and cascading down topolicy and strategy formulations to resolve them.
The IT group companies, meanwhile, have wontrust in the financial and general business sector byproviding needs-driven solutions.
These distinctions in corporate stance, technicalprowess, and human expertise have, in my view,slowed expansion of growth businesses. The fact
remains that Group-wide linkage of the value chain
is key to delivering greater value to our customers
and society. Based on this belief, the Medium-Term
Management Plan 2026 (MP2026) carries on thepolicy of MP2023 in its focus on further accelerationof integrated Group management.
Reorganizing Group operations around four main business fields
Long-Term Vision and Medium-Term Management Plan 2026

p. 34

pp. 31–32

Backcasting from our goals for 2030
To formulate MP2026 we held in-depth discussions
with each Group company’s top management andexecutives over the course of a year. The goal of
integrated management is to develop businesses
with a strong societal impact by connecting Group
companies and departments, which is the key pointof VCP Management.
Discussing where we want to be in 2030 as acorporate Group that maximizes social impact, wearrived at our vision of providing unique value
through the Group’s integrated strengths of think

21 Mitsubishi Research Institute Group Report 2023

tank, consulting, and IT services. We encapsulated
this value statement in the slogan: “Implementing
the world’s future through think tank and IT
synergy.” We also specified targets and initiatives for
FY9/26 by backcasting from this long-term vision.
Leveraging the combined strength of the Think Tank Function and IT Groupto create unique MRI Group value p. 47

We also affirmed that in pursuing our policies, wewill focus on realistic recommendations to address
immediate challenges. The range of issues we face,such as generative AI and other advanced
technologies, attaining carbon neutrality, crafting
post-pandemic policies and systems, and supply
chain optimization are growing in complexity anddifficulty with each passing year. Real-world
solutions are, therefore, as critical as ever.
Our company has a demonstrated history ofsquarely facing inconvenient truths about the world
we live in. We work with clients to envision theirideal outcomes while maintaining a practical andgrounded approach. In this sense, our directionaligns well with the demands of the current era.
Continued success depends heavily on seamless,integrated Group operations.

Customer-centric approach: essential for
integrated Group management

I Growth Strategy

II How We Address Societal Issues

fashioning client solutions while maintaining anawareness of societal issues and implications.
Medium-Term Management Plan 2026

pp. 33–34

Creating this integrated Group value chain will
enable us to provide realistic solutions to policy andmanagement issues. This, I believe, will not only
enhance the Group’s presence but also strengthen
non-financial and financial value. In my view, abeneficial result of these MP2026 discussions was
realizing our shared potential and establishing acommon understanding among executives.

III The Source of Our Advantage

IV Initiatives to Support Value Creation

This bold objective calls for rapid transformation,robust growth, and improved profitability. Although
this is a medium- to long-term horizon, I am
determined to overcome each year’s hurdles toreach our target and claim the future.

Reorganizing into four main business fields
To formulate MP2026 we backcasted from our ¥200
billion FY9/30 sales target. MP2026 is the step
phase of growth following the hop phase of
MP2023. Allow me to outline the main points.
Medium-Term Management Plan 2026

¥200 billion target for FY9/30 sales is key to our
future as a societal implementation company
As stated in MP2026 we have set an aggressive
sales target of ¥200 billion for FY9/30, an
unprecedented scale of business for our Group.
Long-Term Vision and Medium-Term Management Plan 2026

pp. 31–32

This requires, first, positioning ourselves as the partnerof choice in the eyes of stakeholders and society atlarge. Second, we must broaden the investment
opportunities for our ongoing human resources andsocietal implementation business areas. Third, if we
aspire to be the prime contractor for large-scale
system development and IT services projects, ¥200
billion in sales will be a minimum requirement.

The collaborative Group process of formulating
MP2026 turned into a heated discussion due to theaforementioned differences. Given our sharedobjective of resolving customer and societal issues,
we concluded that the Group exists to proactively
address customer needs in unison, offeringreal-world solutions that bring tangible outcomesand mesh with our vision of societal evolution.

To achieve this, we intend to allocate 85% of a ¥50
billion operating cash flow toward strategic
investment, capital investment, and growth investment
during MP2026. Plotting the specifics of our path to
this new FY9/30 target will be a vital undertaking for
management over the next year or two.

In essence, achieving our goals involves acustomer-centric approach that synthesizes ourdifferent perspectives. The think tank will focus onbridging conceptual recommendations withpractical solutions for societal issues. The ITcompanies will work from the ground up,

From 2005, when our sales were at ¥70 billion, it
took 16 years to surpass the ¥100 billion mark in
2021. Just two years later, we reached a newmilestone of ¥122.1 billion for FY9/23. To sustain
this momentum, we are aiming for 10% annual
growth in the six years ahead.

Message from Corporate Administration Unit General Manager
pp. 45–46

Financial and Corporate Data

pp. 33–34

As stated in Business Strategy (pp. 37–40), we will
implement our overarching policy of integrated
Group management by reorganizing the businessesof MRI and DCS around four main fields: Think Tank
Function, Societal and Public Innovation, Digital
Innovation, and Financial System Innovation. This
lets us offer a one-stop value proposition.
Medium-Term Management Plan 2026: Business Strategy

pp. 37–40

Our Think Tank Function performs research andrecommendations on pressing topics, collating
diverse knowledge from inside and outside thecompany. This function is instrumental in shaping
societal trends. It also brings to light business
opportunities across the Group, making it a focus offurther strengthening.
Think Tank Function (Research & Recommendations)p. 37

Our Societal and Public Innovation Businessfocuses on policy-oriented consulting. With therelaxation of rules separating public projectordering and contracting, opportunities to link
directly from policy and system design toimplementation are increasing. To capitalize on
these new possibilities, we will collaborate as aGroup and establish a public sector division
within DCS mirroring that of MRI.
Societal and Public Innovation Businessp. 38

Mitsubishi Research Institute Group Report 2023

22

Message from the President

Value Creation ModelIn our Financial System Innovation Business there isroom for expanded involvement in the areas of data
mining and DX. As we approach completion oflarge-scale system projects, we will continue thecustomer relationship by resolving upstream issues.
This requires us to accelerate structural reform.
Financial System Innovation Businessp. 40

We view the Digital Innovation Business as central
to growth. This market is a red ocean of fierce
competition. To meet the challenges, we willchannel resources into leveraging our uniquecapabilities in implementation of societal
infrastructure and data-driven management.
Digital Innovation Businessp. 39

Both our Financial System Innovation Business andDigital Innovation Business are addressing thestrong need for DX. In monthly meetings with DCS
President Kameda and division executives we will
review what measures should be taken and explore
ways to hasten results.
Current status of the Digital Innovation Businesspp. 41–42

Message from the President & CEO of Mitsubishi Research Institute DCS
p. 48

Three dimensions of social value creation:
DX, GX, and HX
In MP2026, we reviewed the VCP priority domains
from the perspective of our value creation process(pp. 35–36), including social value andnon-financial value.
The goal was to better leverage our strengths bythinking outside the box of our eight domains‡, anumber that dispersed impact, given our scale. We
have, therefore, reconceived our VCP priority
domains as DX, GX (Green Transformation), andHX (Human Resource and Healthcare
Transformation). These three intersect with ourGroup’s materiality in a framework that optimizes
synergies among the previous eight domains.
Medium-Term Management Plan 2026

pp. 33–34

In DX, we already have several businesses

23 Mitsubishi Research Institute Group Report 2023§

underway in joint ventures with OVHCloud,
TECNOS JAPAN INCORPORATED, and ITFOR
Inc. We are also investing in more startups within
the GX and HX domains through our open
innovation platform, the Initiative for Co-creating
the Future (ICF).
In GX, in addition to working with startups, we areaccelerating societal implementation to realize
carbon neutrality. This will be accomplished throughboth MPX, an energy market information service
joint venture with Netherlands-based KYOS, andour own services, including MERSOL and Blue Grid.
We position these three domains as key growth
drivers. Moving forward, we will increasingly
allocate resources and pursue strategic partnerships
within this framework to maximize scale-up andsocial value.
How We Address Societal Issues

pp. 53–62‡ VCP priority domains:healthcare, human resources, urban life and mobility, circular society, ICT, food andagriculture, resilience§ Collaborations:
OVHCloud:alliance to expand our data analytics and cloud business offerings in the Japaneseand Asian markets. OVHCloud, Europe’s cloud computing leader, acquired ourbusiness and capital partner ForePaaS, Europe’s end-to-end automated big-data
analytics and AI platform
TECNOS JAPAN INCORPORATED:
partnership providing supply chain solutions for the manufacturing and logistics
industries
ITFOR Inc.:
alliance providing cost-saving IT solutions, such as automated screening, for thefinancial, retail, and government sectors

Linking the Group functions of consulting andIT implementation
Structural reform is another aspect of our efforts
to focus Group resources on our three VCP
priority domains.
In the GX domain, we have strengthened proactive
consulting by establishing the Energy andSustainability Division. This brings together
previously dispersed human resources from ourgovernment business, sustainability business, andmanagement consulting.

I Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

In the DX domain, we have formed an integrated
value chain linking management consulting andIT implementation functions. This Business
Consulting Division replaces the functions’formerly separate divisions.
To strengthen system implementation we areencouraging interaction of IT-skilled personnel
between our company and DCS, while leveraging ourpartnership with TECNOS JAPAN INCORPORATED
and others, as I have touched upon.
Group Structure for Advancing the Business Strategies

pp. 47–48

Intellectual and Co-Creation Foundation / Relationship Capital

pp. 76–78

It is my hope that this reorganization offers every
person in our Group a shared sense of profit andgrowth. During my time as a banker, I experienced
integrations, mergers, and restructuring. The
accompanying changes in conceptual approaches andprocedures, though initially confusing, brought me
insights and successes I would have missed withoutworking in new ways. Looking at the past year, I
believe that we are at the point now where all parties
will at last feel the mutual benefits of collaboration.

Human capital management underpins our
foundation strategy
Our foundation strategy (pp. 43–44) calls forstrengthening the Group in five ways, including
cross-group sales collaboration, DX, and, mostcritically, human capital management.
Medium-Term Management Plan 2026: Foundation Strategy

pp. 43–44

Strong intellectual curiosity is a distinguishing
characteristic of our workforce, as is fitting for asocietal solution company. In candid dialogue with
employees, I am constantly struck by their sense of
mission and personal enthusiasm for resolving
societal issues, identifying and supporting startups,
and expanding the scope of societal implementation,
to name a few examples.
Creating an environment where each employee canthrive and continue to excel is a key responsibilityof management. In this context we have introduced
two human resource development initiatives, the
MRI Academy and the DCS Digital Academy. We
are also seeking to align career development with
our ongoing personnel allocation to priority
businesses and reskilling efforts.
Human Foundation

pp. 65–68

Unlocking the full potential of human resources
requires a liberal, open-minded corporate culturethat embraces diversity, equity||, and inclusion(DE&I). With the increasing complexity anddifficulty of societal issues, solutions oftentranscend traditional categories. For this reason,
diversity is part and parcel of our integrated Groupmanagement growth strategy.
Through discussions with employees, we formulated
our Diversity and Inclusion Policy, which has evolved
into our Diversity, Equity, and Inclusion Policy in 2023.
By respecting diversity and leveraging ourdifferences we can foster creative solutions forchanging times, while boosting morale. Drawing
from my own experiences, I am committed topromoting DE&I initiatives and supporting an
inclusive environment that encourages diverse
perspectives and innovation.
Human Foundation / Diversity, Equity, and Inclusion

pp. 70–72

Sputniko! and President Yabuta talk about DE&I in practicepp. 71–72|| Equity:
assuring fairness by eliminating unconscious bias rooted in the organization’s
standards and regulations

Mitsubishi Research Institute Group Report 2023

24

Message from the President

Value Creation Model

Review of board composition andsuccession planning

Brand message expresses key to value creation
at MRIWe have received an increasing number of requests
for meetings from engaged investors, those who
prioritize medium- to long-term value creation.
With this interest comes pressure for greatertransparency regarding growth and profitability. In
response, we are enhancing disclosure, this report
included, to substantiate our track record.

Along with MP2026 we announced our domestic
brand message: With all walks of knowledge. This
crystalizes our starting point for social value
creation through which we realize our Group
Vision: Envisioning the future, leading change.

Governance

pp. 87–96

With respect to board members and succession
planning, we appoint candidates whose knowledge
and experience equip them to succeed in the job.
This policy of meritocracy disregards prior posts
and affiliation. Though it has been pointed out that
our officers, myself included, are predominantly
from Mitsubishi Group companies, the majority of
executive officers and department heads have risen
through the ranks of our own employees.
We are currently re-examining our executive
succession planning from a diversity perspective,
while enhancing transparency of the promotion andnomination process. Board composition is routinely
reviewed by the Governance Advisory Committee
who provide oversight of nomination, using ourskill matrix as one reference. We have also
augmented the board with outside directors forlegal affairs and DX since December 2023.¶
Skill matrix of directors and corporate auditors
Governance: Officers

p. 90

pp. 91–92¶ Outside Directors:
Ms. Satoko Shisai, executive VP & head of DX at Chugai Pharmaceutical Co. and Ms.
Naomi Koshi, lawyer, entrepreneur and former mayor of Otsu City, assumed officein December 2023

25 Mitsubishi Research Institute Group Report 2023

Who We Are

I Growth Strategy

I cannot dispute that this is a lofty ideal. Balancing
the contradictory demands of real-world issues is aconstant struggle. But we are confident thatknowledge will reveal the answers. Taking thisbrand message to heart, I am committed to ongoinggrowth with all our stakeholders.

Kenji Yabuta

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Key takeaways: understanding the MRI Group’s growth strategy
TopicsOrdinary profit
target of ¥10 billion

Page inPresident’s
message

Summaryp. 20

Under MP2023, initiated in FY9/21, we have expanded social impact
through end-to-end support, from the conceptualization and proposal ofdesired outcomes to their societal implementation. We surpassed ourordinary profit target of ¥10 billion for two years running.

p. 20

MP2023 called for building the growth businesses that will support our
future, while strengthening core businesses. MP2026 accelerates structuralreforms to boost the scale and profitability of growth businesses such as
our DX and global businesses, which have lagged behind expectations.

pp. 21–22

To expand our growth businesses, we are further integrating managementof the Think Tank & Consulting Services segment with the IT Services
segment in a customer-centric approach. With a value chain that extends
to societal implementation, we will deliver real solutions to public policy
issues and management challenges.

pp. 1–2

Every societal innovation, no matter how great its
social impact, starts from the insight and knowledge
sparked by human dialogue. It is our wish to
improve people’s daily lives through real solutions
created by sharing and expanding upon such insightand knowledge.

II How We Address Societal Issues

Structural reforms

Major points of MP2026
1) Integrated Groupmanagement andcustomer-centric
approach2) Growth
investment
for upscaling

3) Reorganizing
around four main
business fields

p. 22With a target sales figure of ¥200 billion by 2030, we are pursuing growthand profitability by directing 85% of our ¥50 billion operating cash flow
into growth investments in human resources and R&D, and strategic
investments in capital expenditures and M&A, among others.

pp. 22–23

Toward achieving integrated management of all Group businesses, wehave reorganized around four main business fields: Think Tank Function,
Societal and Public Innovation, Digital Innovation, and Financial System
Innovation. This creates a one-stop value proposition.

President and Representative Director,
Mitsubishi Research InstitutePage in report

Review of Previous Medium-Term
Management Plans p. 29
Message from Corporate
Administration Unit General
Manager p. 45
Review of Previous Medium-Term
Management Plans p. 29
Message from Corporate
Administration Unit General
Manager p. 45
Reorganizing Group operations
around four main business fields
p. 34Group Structure for Advancing theBusiness Strategies p. 47
Long-Term Vision and Medium-Term
Management Plan 2026 p. 31
Message from Corporate
Administration Unit General
Manager p. 45
Medium-Term Management Plan
2026 p. 33
Message from Corporate
Administration Unit General
Manager p. 45
Group Structure for Advancing
the Business Strategies p. 47

4) Three dimensions ofsocial value creation:
DX, GX, and HX

p. 23

To maximize social value, we have reconceived our VCP priority domains
as DX, GX (Green Transformation), and HX (Human Resource and
Healthcare Transformation). Positioning these as growth drivers, we will
advance structural reform, allocate resources, and pursue alliances within
this framework.

5) Strengthening ourworkforce

p. 24

To enhance human resource development we have established the MRI
Academy and DCS Digital Academy. We are also coordinating personnel shifts
to priority businesses career development initiatives, and reskilling programs.

Human Foundation

p. 656) Strengthening
IT consulting
capabilities

p. 24

To strengthen our value-chain’s link between consulting and IT system
implementation, we are encouraging intra-group collaboration of IT-skilled
personnel and joint projects with other companies.

Human Foundation

p. 65

Diversity, equity,and inclusion policy

pp. 24–25

Diversity is a critical element of our integrated Group management growthstrategy. Through discussions with employees, we formulated our Diversity
and Inclusion Policy, which has evolved into our Diversity, Equity, andInclusion Policy.

Human Foundation

p. 70

Board composition andselection

p. 25

The Governance Advisory Committee reviews board composition andprovides oversight of nomination, using our skill matrix as one reference.
Since December 2023 we have augmented the board with outside
directors versed in legal affairs and DX.

Brand message

p. 25

Coinciding with our announcement of MP2026 we also introduced ourbrand message: With all walks of knowledge. This expresses our emphasison human dialogue as the spark for insight and knowledge that createsocial value.

Medium-Term Management Plan
2026 p. 33
How We Address Societal Issues
p. 53

Close-up

p. 71

Social Trust Foundation
Governancep. 87

Who We Are

p. 1

p. 81

Mitsubishi Research Institute Group Report 2023

26

Ⅰ

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Growth Strategy

Deeper integration of Group management
enhances our profitability and business scale.
Continual investment in capital to support growth

pp. 33–34

Medium-Term
Management Plan 2026:
Business Strategy pp. 37–40

A

Financial
capitalAnalysis &Conceptualization

Shareholders,investors

2020 2023
Human
Foundation
Human capitalSocietal and Public Innovation
Business

Public sector
entities

A corporate Group leading
societal change for the futureIntellectual and
Co-Creation
Foundation

Privatecompanies

Financial System Innovation
Business

D

C

Societal
Implementation

Design &Testing

International
and local
communities

Students,
mid-career hires

Social Trust
Foundation

Business partners

Review of Previous Medium-Term
Management Plans pp. 29–30

Long-Term Vision and Medium-Term
Management Plan 2026 pp. 31–32

Expansion of our recruitment and co-creation network
through the enhancement of our reputation and brand value

27 Mitsubishi Research Institute Group Report 2023

Message fromthe President & CEO of
Mitsubishi Research Institute DCS

p. 48

Individual wellbeing

Societal sustainability

Using our business torealize a better future
Technology transforming society

Think Tank Function

Digital Innovation BusinessIntellectual capital
RelationshipcapitalMessage from
Corporate Administration
Unit General Manager pp. 45–46

Material issue

Employees

B

Research &Recommendations

Non-financial
capitalTrends andsocietal issues
in Japan andglobally

Financial value

Medium-Term
Management Plan 2026

Non-financial value

2026
Material issue

Our sustainablegrowthValue forour clients

2030

2070

Social value

VisionVision forfor 2070
2070

Building
Building aa prosperous
prosperous andandsustainable
sustainable societysociety inin an
an era
era
when
world
population
will
when world population willreachreach 1010 billion
billion andand 100-year
100-year life
life
spans
will
be
commonplacespans will be commonplace

Human foundation

Intellectual and co-creation foundation

Social trust foundation

Medium-Term Management Plan 2026:
Targets and Indicators for
the Three Values pp. 35–36

Group Structure Driving
Business Strategies /Business Unit Strategies

pp. 47–52

Mitsubishi Research Institute Group Report 2023

28

Review of Previous Medium-Term Management Plans

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Group integration to proactively respond to
customer and societal issues
General overview of MP2020 and 2023

PolicyMP2020

MP2023

Sustainable growth of ourpeople and organization

A societal solution company—A leader inpost-pandemic
societal transformation

Medium-Term Management Plan 2020 aimed to establish
sustainable growth of our people and organization. Measuresreformed our workstyles and business portfolio, such as
expanding private businesses. While we made progress inthese areas, the business model still needed to be improvedin the area of profitability; our conventional contract-based
research work still accounted for the majority of revenue.
In Medium-Term Management Plan 2023, we took action
as a societal solution company by implementing our VCP
Management to bring together the Group’s wide range ofbusiness functions to more proactively address the issues
facing customer and society. The result was larger projects
and increased profitability that enabled us to generallyachieve our financial targets for 2022 and 2023. We also
improved our ability to address societal issues andstrengthened our foundations for sustainable growth byadopting the Basic Policy for Sustainability and the Basic
Policy for Diversity and Inclusion.
Under Medium-Term Management Plan 2026 (MP2026)
will continue to build on these results and further accelerate
our growth by facilitating deeper integration of the Group.

Apply three policies (VCP
Management, consolidated
management, management under
the new normal) to maximize the sumof the three values (social value,
non-financial value, financial value)

Three Reforms• Business portfolio reforms
Strategy andreview• Private sector business expansion
through public-private co-creation• Establishment of a sales function• Business model reforms• Room for growth insubscription-based services• Workstyle reforms• Remote work firmly establishedSocial value• Creating social value takes time,

so we must focus on improving
the indicators related to using ourbusiness to create value

Sales:¥92.0 bn

Progress onfinancial goals(Target: ¥100 bn)

Ordinary profit:¥8.3 bn

ROE:

13.9%

(Target: ¥8.0 bn)(Target: 10%)

Net sales(¥ bn)

MP2023
Hop phase

140

116.6

120

MP2020100• Formulated basic sustainability andDE&I policies• Disclosure following TCFD
recommendations, work-life balance,
health-focused management, DE&I

Top: sales
Bottom: sales ratio

20

Sales:

General private sector

Public sector¥122.1 bn

9.8%

Operating profit margin(consolidated)
Think Tank & Consulting Services

New focus

New focus

Structural reform to
improve profitabilityGroup integration toaccelerate growth

29 Mitsubishi Research Institute Group Report 2023

40.3
(45%)

41.4
(45%)

28.7
(32%)

28.5
(32%)

28.4
(31%)

27.6
(27%)

27.6
(27%)

27.4
(23%)

55.6
(45%)

28.8
(24%)

36.0
(31%)

37.7
(31%)

21.7
(24%)

21.3
(24%)

22.3
(24%)

2018

2019

2020

2021

2022

2023

5.5%

5.7%

6.8%

6.7%

7.9%

7.1%

9.3%
3.1%
7.5%
20.91
1.53

9.0%
3.6%
7.6%
16.18
1.21

9.7%
5.0%
13.9%
10.15
1.34

9.0%
5.1%
9.1%
14.27
1.27

8.5%
7.4%
12.8%
9.39
1.15

6.8%
7.3%
9.8%
12.34
1.17

0

(Target: ¥10 bn)(Target: 10%)

39.8
(44%)

47.8
(46%)

53.3
(46%)

60

FY9/23

ROE:

92.0

Financial institutions

40

Ordinary profit:

90.0

80

• Mostly achieved¥10.0 bn

90.2

122.1

103.0

Non-financial value

Financial value

FY9/20

MP2026
Moving toward
the Step phase

IT Services
Return on equity (ROE)
Price earnings ratio (PER) (times)
Price book-value ratio (PBR) (times)(Year)

Mitsubishi Research Institute Group Report 2023

30

Long-Term Vision and Medium-Term Management Plan 2026

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

MP2026 and our goals for 2030 will leverage changes insociety for growth opportunities
Positioning of Medium-Term Management Plan 2026

We forecast a growing market for the Group’s Think Tank
& Consulting Services and IT Services owing to theincreasing needs related to addressing societal issues andthe expanding digital transformation market. Although ourexpertise in the government and public sector and thefinancial sector provides a stable base for our businessstructure, accelerating our growth will require further
building our scale and enhancing our profitability.
Recognizing our current status, we have set a long-term
vision to be a corporate group in 2030 with a strong
presence providing one-stop services from research andrecommendations to IT implementation and services. In

our triple jump scheme to achieve our goals for 2030,
Medium-Term Management Plan 2023 (MP2023) is theinitial Hop phase and MP2026 is the second Step phase.
MP2026 will follow a Group business strategy (pp.
37–40) in which we will join with Mitsubishi ResearchInstitute DCS for new customer development and digitalmarketing activities, which will create a uniquevalue-creation model and enhance our earning power.
These efforts will lay the groundwork for reaping thebenefits of our M&A and alliance strategies, using new
businesses and expanded overseas operations to bring ourscale and earnings to new levels, and generating profit at alevel at least on par with our competitors in the year 2030.

200

180

our accumulated knowledge and reliable technology to work with our• Usecustomers and partners to find solutions and be a corporate Group leadinga one-stop service for policy proposals and recommendations, research• Provide
and consulting, and IT implementation and services

140

sales to ¥200 billion to give us greater freedom when pursuing our business• Raiseand financial strategies, secure stakeholder trust, and establish social presence

Politics

The Group is taking on a bigger role and seeing increasing opportunities amid
the increasingly complex international and economic situation, new technologicaladvancements, and the increasing importance of addressing societal issues

Economy• Multipolarization of thebalance of power• Expanding of the digital
economySociety• Declining birthrate andTechnology• Advances in generative AI

Earth &
environment• Carbon neutrality• Circular economy• Resilienceaging population

31 Mitsubishi Research Institute Group Report 2023

135.0

120

Financial System
Innovation

55.6
(45%)

DigitalInnovation

28.8
(24%)

Societal andPublic Innovation

37.7
(31%)

80

Assessment of the current situation

Societal trends

MP2026
Step phase

122.1

100

Trends leading to 2030

200.0

Net sales(¥ bn)

160

societal change for the future

Our goals for 2030

MP2029Jump phrase

Societal impact• Increasing complexity of production andconsumption regions• Reconfiguring of global supply chains• Heightened data sovereignty and security• Coexistence of mega platformers andindividuals• Ongoing digitalization and increasing
investment in human capital• Restructuring of the social security system• Increasing need to consider AI ethics• Further acceleration of labor substitution• Business rules based on global andenvironmental issues

Implications for MRI
complex• Increasinglyinternational and economic
situation

spread of• Accelerating
digital society
and• Governments
companies prioritizing

addressing societal issues

A bigger role andincreased opportunities
for the Group

60

40

20

0

FY9/23

FY9/26 (targets)• Reinforce direction of MP2023• Build unique value-creation
models for strategic domains
across the GroupFY9/30 (expectation)• Leap forward by reaping theresults that emerge• Expand business areas, improve
profitability, and achieve
inorganic growth

Mitsubishi Research Institute Group Report 2023

32

Medium-Term Management Plan 2026

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Building our scale and boosting profitability throughan integrated Group business strategy, foundation strategy,
and value creation strategy
MP2026 basic policy and growth targets
Medium-Term Management Plan 2026 (MP2026) will unify
the Group’s strengths to build our business scale andboost our profitability to ensure we stay ahead of changes
in societal trends and customer needs. The plan will alsoestablish a management approach prioritizing awarenessof capital costs, further establish our sustainability
management, and accelerate the sustainable growth of ourpeople and organization. The plan’s objective is to be thepreferred corporate group of our stakeholders.
MP2026 comprises a business strategy, foundation
strategy, and value creation strategy that will set the Groupon a unified path toward business growth.
The business strategy has three main focuses. The first is
to enhance our digital transformation (DX) business tocapture the growth opportunities in the expanding DX
market. The second is to strengthen and accelerate ourbusinesses in the green transformation (GX) domains ofenergy and circular society and in the human resource andhealthcare transformation (HX) domains of human resources
and healthcare. And the third is to qualitatively reform our
public sector and financial businesses. The strategy also
includes continuing the Medium-Term Management Plan
2023 (MP2023) efforts to expand our service-based
businesses with the aim of developing and strengthening
our activities in the Middle East and Asia for 2030.
To ensure the three strategies directly lead to businessstructure reform, MP2026 reorganizes our business aroundfour main business fields and establishes deeper connections

between MRI and DCS to create a one-stop model for
providing value. We will also optimize the timing of ourpersonnel assignments and transfers in anticipation ofbusiness growth.
Priority issues set in the foundation strategy include themanagement of human capital in accordance with the growthof the Group and the improvement of risk management. The
strategy outlines five specific measures for improving ourabilities in these areas and mandates swift implementation.
The value creation strategy is focused on enhancing ourability to address societal issues and contribute to thesustainability of the company and society. Our objective is
to be the preferred corporate group of our stakeholders byrealizing a growth cycle of social value, non-financial value,and financial value.
We will steadily implement these strategies as we aim
to achieve our FY9/26 targets for net sales of ¥135 billion,
ordinary profit of ¥14 billion, and ROE of 12%.
A

B

Organizational restructuring and business summary
MP2026MP2023

MRI
Think Tank

• Think Tank Function• Societal and Public Innovation Business• Digital Innovation Business• Financial System Innovation Business

Foundation
strategy

D

Value creation
strategy

Our goals
for 2030

Business Consulting
Digital TransformationC

DCS
Industry IT

Independent Policy
Recommendations

Planning of public
policy andbusiness strategies(1) Think Tank
Function

Enhancenon-financial andsocial value

Development andoperation of businesses

Development andoperation of solutions(2) Societal and Public
Innovation Business
Increase
personnel

Influencesocietal trends(3) Digital Innovation
Business

Services

Value creation strategy(2) Societal and Public
Innovation Business

Increase value provided
through Group collaboration

Grow the public
DX business

Deepenexisting
businesses

Expand theservice business

Build a newrevenue base

Explorenew
businesses

1. Implement human capital management

HR recruitment, career development & reskilling, DE&I

2. Fortify sales capabilities

Digital marketing, consulting sales, key account development

3. Pursue new businesses and global business

Infrastructure development, venture collaboration, accelerationof business development in the Middle East and Asia

4. Digitally transform the Group

Productivity improvement through application of generative AI
and think tank DX

5. Expand risk management

Enhancement of ARMS, SI-PMO*, security, and legal functions

Financial IT
Payment & Transaction IT

Increase businessscale and profits

Build the public
DX pipeline(4) Financial System
Innovation Business

Foundation
strategy

While we previously focused on strengthening thevalue-chain connections between MRI and DCS as
individual entities, MP2026 shifts our organization to a
Group-based structure centered on four main businessfields. MP2026 combines the business domains of MRI
and DCS to build unique value-creation models.

Our four main business fields:• Think Tank Function: provides research andrecommendations for addressing societal issues• Societal and Public Innovation: leverages our strength inknowledge of public policy• Digital Innovation: focuses on addressing issues andpromoting DX in the private sector• Financial System Innovation: applies our strength infinancial service information systems(1) Think Tank Function
This function enhances the company’s social value and non-financial
value by addressing societal issues and helping shape societal trends
through advancing research and recommendations in thegovernment policy, economics, science, and technology fields. (p. 37).

Policy Consulting

Businessstrategy

Basic policy

Businessstrategy

Reorganizing Group operations aroundfour main business fields(2) Societal and Public Innovation BusinessIn our research and consulting work, which applies our strength inpolicy knowledge, we will take steps to increase our workforce,
improve productivity, and seek to formulate a public-private
ecosystem to address societal issues. Focus areas will be collaboratingwith the Digital Innovation Business to create projects for public DX
at government agencies and continuing to move forward in the
MP2023 areas of advance investment to scale and monetize services
connected to addressing societal issue. (p. 38).

(3) Digital Innovation Business
MP2026 sets the Digital Innovation Business as our business growth
driver. Through integrated management with DCS, the plan aims tostrengthen and build our businesses in private DX, data analytics, AI
consulting, and solutions; expand in the public DX field centered on
medical and long-term care; and continue to grow our services forthe education and HR sectors. (pp. 39–40).

Financialvalue(4) Financial System Innovation Business

Increasecustomervalue

Socialvalue

This business is taking steps to raise its profit margin, improve its
revenue management for financial business services, and revise its
business portfolio toward post-implementation services for large-scale
system projects. This arm will also pursue new businesses for
applying our expertise in financial systems and new technologies,
such as generative AI. (p. 40)

Nonfinancial
value* SI-PMO is an in-house function used to manage SI project risk and profitability to ensure the execution of large-scale solution projects

33 Mitsubishi Research Institute Group Report 2023

Mitsubishi Research Institute Group Report 2023

34

Medium-Term Management Plan 2026: Targets and Indicators for the Three Values

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Establishing a positive cycle of financial, non-financial, andsocial value for sustained enhancement of our corporate value
Cycling and maximizing the Three Values

Financial value

Our Vision for 2070 is to be using our business to help
resolve societal issues and build a prosperous and sustainable
society for an era of a 10 billion world population and100-year lifespans. To achieve that, we engage in sustainable
management aimed at enhancing and generating a positive
cycle of social, non-financial, and financial value.
We create and enhance social value by publishingproposals for resolving societal issues and by guiding theGroup’s business activities toward generating a positive
impact on society. It is also essential that we simultaneously
seek to enhance our non-financial value. We do this byusing the foundation of social trust we have earned from

MP2026 targets¥14.0 bn (FY9/24 forecast: ¥10 bn)
12.0%

Ordinary profit
ROE

MP2026
12.8%

ROE

ROE
9.8%

9.1%

12.0%
Net sales¥103.0 bn¥116.6 bn¥122.1 bn

Ordinary profit¥7.5 bn

FY9/21¥10.4 bn

FY9/22¥10.0 bn

¥10.0 bn

Ordinary profit¥14.0 bn

FY9/26

FY9/24

FY9/23

Net sales¥135.0 bn¥118.0 bn(Forecasts)(Targets)

Non-financial value
Non-financial
value

Human
foundation

Intellectual
and
co-creation
foundation

Social trust
foundation

Approach to setting indicators based on MP2026

fulfilling our corporate social responsibility, particularly
through our ESG activities. We also do this by enhancing ourability to apply our human foundation and our intellectualand co-creation foundation to provide solutions for societal
issues, which is the source of our competitiveness. The
financial value that providing social value generates in theform of growth in sales, profits, and other revenue isreinvested to enhance our non-financial value, thereby
creating a cycle of growth for our Three Values.
We have formulated a long-term approach andnumerical indicators for our social value and non-financial
value by backcasting from our goals for 2030 (p. 31).

Social value
Category

Increasing human capital
The source of the Group’s competitiveness is its ability to continue
strengthening its capacity for providing solutions to society, and to do this,increasing our human capital is essential. To secure talented individuals anddevelop our workforce, we are elevating our human capital by encouraging
employees to take advantage of high-quality training programs.

Training

Maximizing our human capital’s potential
Our talent is diverse, and we seek to ensure an environment where all are
motivated and bring out the best of one another. We actively promote
diversity, equity, and inclusion (DE&I), including measures to support thesuccess of women and to maintain a high level of individual engagement.

Indicator

2023 results

2024 targets
2.3

2026 targets

2.1

Diversity

Women among
new hires†

32%

32%

34%

Engagement

Engagement
Score

74

Maintainabove 70

Maintainabove 70

Increasing our intellectual capital
Our core competitiveness is the combination of our human capital andour intellectual capital—the knowledge and intellectual assets we haveaccumulated through our research, recommendations, and businessactivities. We actively use our intellectual capital to identify policymaking
important to achieving our vision for the future, lead the formation ofsocietal trends, and earn opportunities to participate in government
councils, such as for the Prime Minister’s Office and deliberationcommittees. We will also seek to increase our intellectual capital bystrategically acquiring the rights to our intellectual assets.

Research andrecommendations

Number ofcommittee
memberappointments

152

Year-on-yearincrease

Year-on-yearincrease

Intellectual
property

Number of IP
patent applications
and registrations

Applications:9Registrations:
11

Applications:10Registrations:
8

Applications:13
Registrations:
10

Broadening our co-creation platform
We are broadening our platform for co-creation activities by searchingfor startups working to cultivate future businesses and deepening
collaborations with our business partners. A bigger platform will enable
us to apply our Group’s human and intellectual capital to finding
solutions to societal issues that are more complicate, expansive, anddiverse for us to address on our own.

Partnerships andcollaborations
with startups

Membership of
Initiative for Cocreating the Future(cumulative)

201

210

250

Collaborations

1

3

10

BP‡ alliances andjoint research with
universities andresearch institutes

Joint researchcontract
agreements

23

25

35

Contributing to the global environment
The Group will continue to fulfill its corporate social responsibility to help
build a prosperous and sustainable society and establish sustainablegrowth for our Group. Advancing initiatives for decarbonization is a central
part of our activities to contribute to the global environment.

Carbon neutrality

Energy fromrenewables

30.7%

35%

45%

7,686 tCO2

7,200 tCO2

6,400 tCO2

Fortifying governance
Governance is a foundation of social trust. We continually seek to fortify
governance within the Group by promoting compliance and improving
our risk management.

Risk andcompliance

Serious legal
violations

0

0

0

Brand and trust
We maintain the highest standards in order to maintain the trust in ourGroup and the reputation of our brand.

Customer trust

Customersatisfaction

4.59

Above 4.5

Above 4.5

2024
targets2026
targets

Approach to setting indicators based on MP2026

Category

Indicator

Social value
targets basedon material
issuesBuilding a prosperous and sustainable world throughour business
The Group’s objective is to resolve societal issues to build aprosperous and sustainable society.
We have defined three areas of materiality where we set
specific targets: (1) individual wellbeing, or ensuring health,self-fulfillment, and connection, (2) societal sustainability, or
ensuring safety, security, and global sustainability, and (3)technology transforming society, or societal implementationof innovative technologies and transformation of companies
and society. We selected human resources and healthcare,green transformation (GX), and digital innovation as
representative business domains for these material issues
where we will visualize and seek to maximize the social
value that we can provide to our customers through ourbusiness activities.

Individual wellbeing

Human resources
and healthcare
business sales (¥ bn)

13.3

13.5

17.0

Societal sustainability

GX business sales(¥ bn)

5.4

6.5

7.5

Technology
transforming society

Digital innovation
business sales (¥ bn)

26.0

29.0

35.0

Social value created from policy support, research andrecommendations, and co-creation activities
In addition to using our business activities to generatesocial value related to the three material issues, we also use
the Group’s strengths to: produce and enhance social value
by contributing our knowledge of policy, which generates
revenue from public sector projects; to influence societal
trends through our recommendations and communications,which increases the volume of media exposure; and to use
co-creation to foster startups, which increases the numberof startups receiving guidance.

Knowledge of policy

Public sector
revenue (¥ bn)

37.7

Non-public

Non-public

Recommendations
and communications

Number of media
interviews (year)

247

260

300

Co-creation

Number of startups
receiving guidance(cumulative)

35

42

60

2.7

Average numberof training sessions
per person*

GHG emissions

2023
results

Social value

The social value
our Group
strengths create* Group-led training sessions only. Includes in-person and online sessions. Excludes voluntary participation by companies or organizations† Percentage of women among new university graduates hired by the Group on April 1 of each year
‡ Business partner

35 Mitsubishi Research Institute Group Report 2023

Mitsubishi Research Institute Group Report 2023

36

Medium-Term Management Plan 2026: Business Strategy

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Our functions apply our deep understanding of policies, systems,
and strategies to develop effective solutions for customer andsocietal issues with the ultimate objective of societal implementation
Think Tank Function (Research & Recommendations)Objective

Media reports and quotes, contributed articles, and lectures

The VCP Management A) Research & Recommendations
function uses three strengths to maintain its status as aunique presence both inside and outside the Group.
Three strengths(1) Integrating internal and external knowledge to resolve
societal issues: knowledge multiplication(2) Scientific approach to formulating recommendations:recommendations from a clear stance(3) Presentation of starting points for societal
implementation aimed at the Group’s vision forsociety: recommendations for solutions
Our objective is to use our research and recommendations
to enhance the Group’s presence, increase our social value,and build our non-financial value through the growth of
our people and the organization. In addition, the value wecreate with our VCP Management collaborations insideand outside the Group indirectly contributes to enhancing
the Group’s financial value over the long term.

Basic policy

Societal and Public Innovation Business

Meet the final-year targets

To realize our vision of the future society, we identify all
relevant occasions to aid in forming important policy,
nimbly seize opportunities to provide recommendations on
impactful themes, and engage in work that will influencesocietal trends. We provide multi-layered, outcome-oriented
recommendations to the government and corporations, thus
helping to form national policies and corporate strategies.
In particular, we will strengthen the Group’s internal andexternal communications and collaboration in the fields ofhuman resources, healthcare, digital information, energy
and circular society, each of which are urgent societal
issues. We will also boost the Group’s presence in theminds of customers and stakeholders, step up acquisitionof human resources, and establish circularity to maximize
the Three Values.
To implement these policies, we will focus on developing
the human resource needed to realize our goals for 2030,
continuously and constructively strengthen our researchcapabilities, and cultivate our network of leading research
institutions in Japan and overseas. These measures will
systematically strengthen our research structures andenhance our sustainability and growth potential.

In FY9/26, we will establish an organizational foundation
capable of producing autonomous and continuous scienceand evidence-based research and recommendations thatwill lead to high-quality outcomes that contribute to theformulation of major national policies and corporate strategies.

37 Mitsubishi Research Institute Group Report 2023

380
260

FY9/23+46%

FY9/26(Target)Key strategies•

Pioneer major societal trends to achievea desirable future world
To astutely grasp important policy-making opportunities
and provide research and recommendations that influence
the formation of societal trends, we will raise the level of
our advanced technology research in the fields of AI,
energy, and circular society. We will also work to establish
MRI as a leading technology brand.
To contribute to national policies and corporate
strategies, we will strategically utilize outcome indicators,
create communication plans for each field, and maintainmultilevel contacts with the public and private sectors.

• Growth of our people, our organization, and our presence

To fulfill our goals for 2030, we will ensure the sustainabilityof our research structure by systematically expanding andfortifying our research systems by expanding and fully
engaging visiting researchers and our worldwide networkof experts. We will strategically communicate our findings.

• Enhance the Group’s overall value as a provider of

research and recommendations
We will actively communicate the outcomes of our researchand recommendations for resolving societal issues and use
A) Research & Recommendations as the cornerstone fororganic integration with our business strategies.

Objective

The Societal and Public Innovation Business uses its
strength in policy to maintain the top share in research andconsulting for priority issues in the public and private
sectors and to contribute to maintaining and expanding thecompany’s financial base.
The Societal and Public Innovation Business is thestarting point for our growth as a corporate group leading
societal change for the future. Following the Group’s vision
for VCP (pp. 13–14), we are extending our value chain fromthe research and consulting business to system integrationand digital transformation with the objective of becoming
the leading company providing solutions for societal issues.

Basic policy

Meet the final-year targets

The research and consulting Business will remain focusedon research and analysis, system design, and testing forimportant governmental policy areas. The business will
also apply our VCP framework by creating businesses
through public-private collaboration and by forming
ecosystems aimed at societal implementation.
In the public sector DX business, we will increase
collaboration between the Digital Innovation Business and
DCS to strengthen our work implementing system
integration and digital transformation, which includes
development, operation, and maintenance. We will focus
efforts on the semi-public sector as it fits with our policy
knowledge and it is in urgent need of digital transformation.
Our societal solutions and services business is highly
unique for its ability to fully integrate our policy and program
knowledge. We plan to continue fortifying our humanresources and business partners as well as our profitability.

Key strategies•

Research and consulting business
As the main driver of the Group’s growth, we plan to add
human resources to this business and enhance its
profitability to maintain and strengthen its competitivenessand grow its scale. We set clear visions for society andpaths for resolving societal issues, pursuing outcomes thatmaximize the value we provide in achieving these.

•

Public sector DX businessWe will use our consulting expertise, founded in our
expertise in public policy, to contribute to forming andimplementing public policy and public DX projects centeredon the medical and long-term care, disaster prevention, andsocial infrastructure fields. Our efforts to promote digitaltransformation in the public sector will be conducted with
the Digital Innovation Business in charge of system
implementation and the consulting function applying theknowledge and data we obtain through the systems
implementation and operation.

•

Societal solutions and services business
The societal solutions and services business encompasses
the services that the Group provides directly to society andthe public. In line with the Group’s VCP framework, thebusiness aims to provide both the social value of solutions
for societal issues and financial value of profits primarily inthe four areas of energy and sustainability, human resources,
local regions and communities, and healthcare. The future
vision for this business is to develop and externalize its
operations to build its scale and enhance its profitability.

In the final year of MP2026, we are aiming for net salesof ¥52 billion, representing an ¥8 billion increase from
FY9/23.

Net sales¥44.0 bn¥52.0 bn

+18%
Research andconsulting
Societal solutions
and services
Public DX*

FY9/23

FY9/26(Target)* The public DX business is included in duplicate because it ispromoted in collaboration with the Digital Innovation Business

Mitsubishi Research Institute Group Report 2023

38

Medium-Term Management Plan 2026: Business Strategy

Value Creation Model

Objective

The Digital Innovation Business follows our concept of the
DX Journey® with the aim to be a management partner forcustomers by providing total support for implementing
digital transformation (DX) meeting their specific needs.
The DX Journey® is the methodical application of the
PDCA cycle to DX activities in the five areas of user
experience, business model, operations, systems, andorganization to forge the path toward the futures that ourclients envision for themselves. Combining this with theGroup’s system-building capabilities and track record
pioneering the incorporation of generative AI and othertechnologies, we guide our customers from conceptualizing
strategies through building an organizational consensus toapplying digital technologies, making us a powerfulproblem-solving partner for our customers.

The business is also key to further expanding theGroup’s market share and is working with DCS in its coreareas of human resources and educational services toenhance customer satisfaction and develop new functions.
In the final year of MP2026, we are aiming for net salesof ¥35 billion, representing an increase of roughly ¥10billion from FY9/23.
Net sales¥26.0 bn

Consulting+35%

ERP and SI*

Data analysis, AI,
and services
Public DX business†
FY9/23Company
level

Future vision
Backcasting

Digital business
transformation
Forecasting

DX Journey®
Digitalization

Basic policy

Meet the final-year targets

Medium-Term Management Plan 2026 (MP2026) positions
the Digital Innovation Business as a growth driver.
The business expands on our consulting services work
helping customers resolve management issues. The
competitiveness of our consulting is enhanced by combining
it with our DX solutions, which transform supply chains in
the manufacturing and distribution industry, and our data
analytics and AI offerings, which leverage the Group’s corestrengths. We provide support for reforming businessmodels, improving business process efficiency, andoptimizing evidence-based decision-making.
In our strength area of public sector DX, the businessworks in concert with the Group to formulate andimplement public policy in society.

39 Mitsubishi Research Institute Group Report 2023

The data analytics and AI business works with theconsulting business to enhance our public sector projects,
develop AI systems, and accelerate development of AI
solutions and services. We are seeking to expand the businessand improve its profitability.

• Service business

The service business is enhancing the functionality of
PROSRV®, a HR business process and payroll outsourcing

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

service, and miraicompass®, an online school admissions
services for all grade levels. The business is enhancing
its support services with the aim of further expanding
market share, increasing customer satisfaction, andimproving profitability.

•

Public DX business
The public DX business joins with the Societal and Public
Innovation Business to advance systems implementation
for public policies.

Financial System Innovation Business¥35.0 bn

DX Journey®

Operatinglevel

II How We Address Societal Issues• Data analytics and AI business

Digital Innovation BusinessBusinesslevel

I Growth Strategy

FY9/26(Target)* Enterprise resource planning is a system that improves operating efficiency andoptimizes a company’s overall management by unifying and centralizing corporate
data and resource management across departments and operations† The public DX business is included in duplicate because it is promoted in collaboration
with the Digital Innovation Business

Objective

The Financial System Innovation Business establishes us as
the main vendor for our clients by building trusting
relationships. This enables us to act as a business partner
not only for developing and operating financial systems but
also for resolving business issues. The business achieves
this by linking the Group’s VCP in its strength areas ofpolicy recommendations, research, analysis, digitaltransformation consulting, service development andimplementation, and system operation and maintenance.

Basic policy

Meet the final-year targets

Consulting business
The consulting business applies our deep understanding ofgovernmental policies, social and economic conditions andtrends, and cutting-edge technologies to provide seamlesscustomer support from developing strategy to analyzing
business models and incorporating information technology.
The business works with the data analytics and SI businesses
to provide total consulting services for resolving customer
management issues.

The business is looking beyond the completion of its
current large-scale system projects to expand theconsulting services it provides to existing customers. We
aim to expand our business reach by offering a wider rangeof problem-solving capabilities, such as for improving
profitability and developing business in the financial
digital transformation domain.
We are also working to bring in new customers anddevelop new businesses that will provide the foundation
for future earnings. We are aiming to transform ourportfolio and establish a new earnings base for after thecurrent major projects.

•

Net sales

Key strategies•

ERP and SI businesses
The SI business creates synergies with the consulting
business to fortify our upselling and cross-selling activities
as well as to strengthen our ERP solutions, such as Biz∫*and mcframe†, through new initiatives in the public sector
and partnerships in the manufacturing and distribution
industries. The business also works with the data analytics
business to provide high value-added services in areas
including advancing green transformation and integrating AI.
* Biz∫ (Bizintegral) is a cloud-based ERP package for accounting, sales, human resources,and other processes provided by NTT Data & NTT Data Bizintegral Corporation† Developed by Business Engineering Corporation, mcframe is a digital platform for
manufacturing-related operation and information management

In the final year of MP2026, we are targeting net sales
near ¥46 billion.

Key strategies•

Finance, payment, and transaction businessWe will use the track record and expertise the Group has
accumulated to continue strengthening and building thisbusiness while actively expanding into new areas.
Specific measures will include growing business in our
specialty areas of market transactions and data usage,strengthening our support capabilities for de-hosting andother processes for migration from legacy systems, andfocusing on Group collaboration in developing new
Banking as a Service (BaaS) operations.

• Financial consulting and financial digital transformation

Activities in this business will focus on strengthening ourpolicy recommendation and research functions. We will
work within the Group and with business partners to
expand our IT and digital transformation consulting
services, such as for BPR* and the DX Journey®. We will
also implement measures to increase sales of our services,
including screening AI.
* Business Process Re-engineering¥51.0 bn•¥46.0 bn
Large-scale system projects

Credit card businessThis business is prioritizing completion of the large-scale
system projects begun during MP2023.
Then we will work to acquire systems operations andrenovation projects while also pursuing business in new
fields and domains to support our long-term growth.

Expansion of work forexisting clients and new projects

FY9/23

FY9/26(Target)Mitsubishi Research Institute Group Report 2023

40

Medium-Term Management Plan 2026: Business Strategy

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Close-up Current status of the Digital Innovation Business
Data analytics and AI businessDX consulting businessThis business features LaLaSapo*, a set of solutions andservices using AI technologies.
While the bulk of our work is currently consulting
clients seeking to introduce and apply generative AI, we
are developing LaLaSapo to help client business innovation.
Our first offering in this direction is RoboRisa†. As weaccumulate experience and know-how in this emerging

field, we will continue adding new and more advanced
features to LaLaSapo as well as to our digital innovation(DX) consulting services.
* LaLaSapo (LArge LAnguage model SUPPOrt) is a total support service businessconcept for using ChatGPT technology† RoboRisa is an online survey AI platform that uses generative AI to automaticallycreate result reports

Generative AI introduction
and use consultation

Consulting service package on using generative AI
Consultation on using generative AI solutions as part of a DX Journey®

Released first version Research, minutes, documents, reports, summary, organization,of RoboRisa
customer support, marketing

LaLaSapo generative AI solutions
and services

2023

2024

2025

Draw a shipping route

Sharpen the navigation skills and crew

Prepare the ship

Strategic planning

Business transformation

Business implementation• Integration of management perspectives
and area expertise• Involvement of the next generation of
executive management• In-depth discussion• Structural reform of businesses andorganization• Introduction of new carbon-neutral
technologies• Development of innovation human resources• Implementation of sustainability
management• Implementation of global ERM• Establishment of M&A alliances

DX Journey®

DX management

DX implementation• DX concept based on future vision• Strategy-linked DX plan
• Visualization of essential DX objectives• Supply chain reform and strengthening• Starting and running DX promotion• Development of DX human resources• System modernization• Introduction of DX solutions• Algorithm implementation
Embark on the voyage

Draw a nautical chart

Support building an environment for using generative AI, development of human resources, support for introducing
generative AI to daily operations

2022

frameworks to visualize a storyline for executing DX
strategies and applying the PDCA cycle to provide support
through to the implementation of solutions.

DX consulting business overview
Value chain of
DX consulting businessfor private sector

How we are using AI in businessIncorporation of generative AI
into our consulting services

Our DX consulting business provides tailored consulting
for clients whose businesses are impacted by macro-level
conditions like policy and the economy. We use ourproprietary DX Journey® (p. 39), DX Scorecard®, and other

Business promotion

Future vision2026

Launch of ChatGPT

Review the voyage plan

• Think tank analysis and predictive
capability• Unique scenario planning• Perspectives on societal issues• Prompt management judgment anddecision-making• Improving organizational engagement• Data-driven management

Business transformation• Management and business environment
monitoring• System launch and DX implementation

monitoring (using the DX Scorecard® andother tools)

Strategic information

Service businessWe are developing services in the human resources andeducation fields.
In the human resources field, we provide a range ofoutsourcing services for personnel and payroll operations
using the cloud-based PROSRV® system. Our services arehighly valued for helping simplify employee activities andimprove operational efficiency.
PROSRV® services

In the education field, we offer the miraicompass® online
admissions service for kindergarten, elementary, middle,
and high schools. This service is recreating how schools andstudents communicate by bringing the full process onlinefrom application through form submissions, scheduling for
informational meetings, and admission procedures.

Short-term process services

Used byCloud-based HR
and payroll system

2,000 companies

Monthly back-office services

Outsourcing of short-term
operations, such as year-end
adjustments, local tax preparation,and tax ID number management

Outsourcing administrative
work related to personnel,
payroll, and labor

Engage the MRI
intelligence foundations

Used by

Basic services

1,200 schools

Optional services
Informationmaterial requests

Pass/failverification

Onlineapplications

Admission fee
settlement

Admission
processes¥

Donations

Tuitionsettlement¥

Exammanagement

Information foundation

Human resource foundation

Network foundation• Domestic and international macro trends andindustry trends• Think Tank DX (database & processing)• Input from management and on-site personnel• Experts in fields and topics• Experts in technology and policy• Coordinators and other specialists• Corporate managers, experienced
academics, policymakers• Business planning (vendor, consulting)• Startups and other connections

ERP and SI businesses
We promote cross-selling of our Group’s DX products when
existing clients renovate their systems. We are maximizing

the Group’s collective strengths to advance initiatives toaddress various customer issues.

MRI Group core DX products
Consulting

Research, analysis,
consulting

miraicompass® services

Knowledge accumulation

Specialized humanresources and networks

Delivery
Development and installation• By sector (regional, healthcare, electric power, etc.)• By theme (management, business, DX strategy, etc.)• By business (administrative accounting, SCM, etc.)

Adjunct support and implementation
Continuous improvement, maintenance, operation, OS support• DX Management Office (DXMO) (adjunct support)• System implementation (tool installation: CRM,

SoR†
(core system)• IT grand design• UI & UX design• Foundation examination• Procurement support• System implementation (ERP package installation,• Post-installation consultation to achieve full effects• Strategic business process outsourcing• In-house production support

SoI‡(Data analysis & AI)• Data usage and analysis consulting• Data analysis platform installation• Data analysis and AI usage• Post-installation consultation to achieve full effects• Development of data analyst human resources,

DX platform• Cloud consulting• Security consulting• Operational consulting• Cloud migration• Security implementation (tool installation, etc.)• IT operation support• Multi-cloud operation services• Data center services• IT operation outsourcing

SoE*(customer contact
transformation)

Recruitment
management

MA, SFA)

specific SI development)

organizational establishment support* SoE (System of Engagement): a client connection system† SoR (System of Record): a system for recording accounting, order management, manufacturing management, and other internal operation data
‡ SoI (System of Insight): a data analysis system supporting decision-making in management, marketing, and other activities

41 Mitsubishi Research Institute Group Report 2023

Mitsubishi Research Institute Group Report 2023

42

Medium-Term Management Plan 2026: Foundation Strategy

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Five measures to strengthen the Group’s sustainable growth

1. Human capital management:
the source of our advantage
Our human resources are the source of our advantage as we
pursue our mission to steadily and smoothly implement andexecute our business strategies and to resolve societal issues.
Medium-Term Management Plan 2026 (MP2026) reflects
this in the initiative to formulate a human resources
portfolio geared to our business strategies and accelerate ourrecruitment, training, and reskilling activities to fill the gap
between the current status of human resources and ourneeds to fulfill our plan.
We support the career development of our workforce
with a full range of training programs and the MRI Academy(p. 68). We also promote diversity and engagement throughour health-focused management, work-life balance, andDE&I policies.

MP2026: (business strategy, foundation strategy, and value creation strategy)
Human resource portfolio + human resource development policy and plan
Hiring and assignment
Build a human resource portfolio bysecuring the quality and quantity of
personnel needed to fortify ourcompetitivenessNew
graduate
recruits

Strengthen and increase
recruitment contacts(universities, media, agents)

Strengthen and increase
recruitment of staff(collaboration with divisions)Mid-career
hires

Strengthen and increase
initial training (elder system,
planned assignments)

Training
Improve human resource value throughvarious and abundant opportunities,
systematic training, and continuous
development(education,
training)(skilldevelopment
support)

MP2026 prioritizes fortifying the Group’s sales capabilities
as a driver for growth. To cultivate new customers in theprivate sector, Group companies will share sales strategies,
and we will actively develop our overall digital marketingand promotion capabilities.
In addition, we have established a new Consulting andSales Unit at Mitsubishi Research Institute DCS to improve
our ability to present the optimal proposals for resolving
customer issues and expand business.
We are also strengthening the Group’s proposal andconsulting functions, including increasing the exchange ofhuman resources across the Group.

43 Mitsubishi Research Institute Group Report 2023

On-the-job
training(trainingsupportactivities)

Various educational programs andcontent centered on the MRI Academy (p. 68)

2. Fortified sales capabilities:
accelerating group collaboration

Increase feedback to clarify
development goals. Provide motivation
for growth and learning

New businesses: strengthening exploration and development
We will continue the MP2023 initiatives to accelerate
exploration and development of new businesses.
Human resources versed in societal and customer issues
will assess societal trends and customer management issues
and generate various ideas for new businesses and businessconcepts geared to our customers.
When setting up new businesses for operation, we will
work with Group companies as well as with business
partners and startups. We are advancing a concerted Groupeffort that brings together our strengths in the energy,
human resources, and regional innovation fields and in
cutting-edge technologies, such as generative AI. Whilecontinuing to build and improve the profitability ofbusinesses launched under MP2023, we will also fortify the
PROSRV®, miraicompass®, and other subscription-based
services, which are a strength area of DCS, elevate theirearnings to roughly 10% of net sales.
New business: MERSOL

Outsidetraining

Selfimprovement

Performance and evaluation

3. New businesses and global business

Clarify skill
development goals(self-awareness)

Put into practice

Provide moredetailed
evaluations
and feedback

Periodic one-on-one
progress meetings
with managers

Operator input
Storage battery
specifications

MRI analytical model
Original multiple-use
optimization model

Customer data, etc.
Usage details

Specifications createdfrom our knowledge ofthe domestic market
and public policy

Output provided
Summary ofinvestment income
and expenditurecollaboration with research institutes in the United States,
Europe, and Asia, collecting information on international
affairs, and participating in joint research projects withforeign entities. We continue to work to enhance the qualityof our research and recommendations and to publish
information in a timely manner.

4. Digital transformation of the Group:reforming our processes and enhancing
productivity with innovative technologies

The ongoing progress enhancing our think tank DX (p. 75)
begun under MP2023 will significantly improve productivity
throughout the Group. We will accelerate the Group’s
digital transformation by integrating generative AI,
advancing the digital transformation of our researchbriefing processes and project management, and updating
our core systems.
We will continue to develop services for externalcustomers incorporating the technologies forged throughour Think Tank DX initiatives.
The first technology that we introduced and which is
gaining widespread use is RoboRisa, an automatedresearch solution using AI and ChatGPT technology forweb surveys and report generation (p. 75).

Operating patterns in
30-minute increments
Data browsing
dashboard

MERSOL is a web-based simulation model indispensable to distributed
energy resources (DERs), such as energy storage and private power
generation facilities, for optimal operation planning.

Global business: accelerating business development
We contribute to resolving societal issues overseas byproviding consulting services and participating in businesses
through public-private partnerships with communities atour bases in Hanoi, Dubai, and other locations. We are also
expanding our global business by supporting the overseas
operations of Japanese companies with advanced knowledge
and partnering with startups to develop new businesses
abroad. The think tank function is strengthening

5. Risk management: improvements as ourbusiness content broadens
We expect various risks to emerge as we broaden ourbusiness content in pursuit of the 2030 goal set out in our
MP2026 to raise net sales to ¥200 billion. We are preparing
by elevating the Group’s risk management, including
construction and implementation of a risk dashboard. This
will help us monitor the fluctuations in risk and enhance
our management of risk indicators. We are also developing
the content of our training programs as a way to reducerisk and increase employee sensitivity to risk. In addition,
we are improving the Group’s project management
structure for system development and creating new process
for smoother operation of new businesses and services.

Mitsubishi Research Institute Group Report 2023

44

Message from Corporate Administration Unit General Manager

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

We are aggressively investing in growth toachieve our goals for 2030
Medium-Term Management Plan 2023, we recognize thenecessity to continue improving, particularly in the areas ofprofit margin, PBR, and ROE.
To add power to our performance, we will be seeking toraise our business scale another level to where we have asales base of ¥200 billion annually. Doing so will give us
greater flexibility in our strategies to achieve our 2030 goals
while also further building the trust of our stakeholders andour presence in society. We have separated our approach
into three stages. During the second stage, which is ourMP2026, we have set targets for sales of ¥135 billion,
ordinary profit of ¥14 billion, and ROE of 12%, each ofwhich are designed to increase our profit margin and

Yasuteru Hirai
Executive Vice President andRepresentative Director,
General Manager,
Corporate Administration Unit

Growth path
Hop
MP2023

Net sales(¥ bn)

210

We generally achieved the Medium-Term
Management Plan 2023 financial targets andsteadily improved our non-financial and social value
The recently completed Medium-Term Management Plan
2023 set targets of ¥10 billion in ordinary profit and 10%
ROE as indicators of our financial value. Our drive to fulfill
our goals maintained the levels of FY9/22 with FY9/23
ordinary profit on the mark at ¥10 billion and ROE close to
the target at 9.8%.
Nevertheless, I believe we could have performed better.
Our performance was largely driven by our core public
sector and the finance and credit card businesses, but we
did not expand the DX business, subscription-based
business, or global business as much as we were aimingfor. For that reason, under Medium-Term Management
Plan 2026 (MP2026) we will accelerate reform of ourbusiness portfolio and model with a focus on our axes ofSocietal and Public Innovation, Digital Innovation, and

150
120

Financial value
Non-financial value

Ordinary profit: ¥10 bn

ROE: 10%

Set goals divided into two
fields: the capacity to resolve
societal issues, and ESG

122.1

FY9/22

FY9/23Social value

Although we largely achieved the financial targets of

92.0

90
60
30
0

FY9/20FY9/26(Plan)

FY9/30(Projection)

40% target dividend payout ratio

Capital policy
Allocated funds
about 50 billion yen
Investable cash
and cashequivalents

Strategic
investment 35%
Capitalinvestment 20%

Operating cash
flow (CF) before
investment in
human capitaland R&D

The MRI Group’s basic policy is to provide stable dividends
to shareholders.
In FY9/24, we plan to distribute dividends of ¥160 per
share, an increase of ¥10 from the previous fiscal year, which
will extend the consecutive years of increases to 12 years.
Following our policy of maintaining stable dividends, we willcontinue following our guideline of providing a 40% payout
ratio while taking into account the balance of our businessperformance, future capital needs, and financial soundness.

Use of funds
Future investment
creation of CF

Growthinvestment 30%
Payout of 15%

or more• Investment, M&A, etc.
• Investment in software (services, etc.)• Maintenance and renewal of equipment,etc.
• Investment in human resources(increase in personnel, training, compensation, etc.)• Investment in R&D(research & recommendations, new businesses,
internal DX, etc.)• Aim for payout ratio of 40%

Dividend payout ratio and dividends per share
43.2

40.6

Results and summary

31.2
26.1

• Ordinary profit: ¥10 bn • ROE: 9.8% • Ordinary profit margin: 8.2%

19.9

MP targets mostly achieved for the second consecutive fiscal year. Business portfolio reform halfway complete.

• Formulated basic sustainability and DE&I policies • Undertook disclosure in line with TCFD recommendations• Work-life balance, health-focused management • Adopted FTSE Blossom Japan Sector Relative Index†‡§

Examples: measures to establish a new ICT infrastructure to support the explosive growth of information,
recommendations for integrated promotion of energy and resource circulation policies.
• Demonstrated and implemented advanced technologies including metaverse and generative AI• Improved wellbeing—one of our social value targets: demonstration of improved wellbeing of visitors* MRI’s unique Value Creation Process of addressing societal issues through an interlocking value chain from research and recommendations to societal implementation† Diversity, equity, and inclusion. The idea of incorporating diversity and fairness, harnessing them for social and corporate activity‡ The Task Force on Climate-related Financial Disclosures, which released a report that recommends disclosure of climate-related information that impacts finances§ An index to measure the performance of Japanese companies with high ESG ratings, ratings; includes companies with relatively high ratings within the sector. Selected as one of
the ESG comprehensive indices for domestic stock ESG investment by GPIF (Independent Government Pension Investment Fund)

45 Mitsubishi Research Institute Group Report 2023

135.0

Strategic investment to improve profitability
and enhance corporate value• Various recommendations aimed at realizing a better society
Set social and businessgoals for each VCP* area

200.0

116.6

39.2

Goal

Jump
MP2029Financial System Innovation
Digital Innovation
Societal and Public Innovation

180

Financial System Innovation.
At the same time, we made great strides for our
non-financial value through measures that included
adopting a Basic Policy for Sustainability and a Basic Policy
for Diversity, Equity, and Inclusion, and proactively
providing disclosure information. These efforts earned thecompany selection to the FTSE Blossom Japan Sector
Relative Index. Enhancing our non-financial value
continues to be a key area of focus.
Our VCP Management is also actively engaging in
activities to create value for society. We are working on
developing ways to measure the financial value and thepositive impact our activities provide to society so we canclearly show our contributions.

Step
MP2026enhance our corporate value. At the same time, we will bemaking strategic investments, including M&A, to set us ona firm path toward fulfilling our goals for 2030.
In response to requests from our stakeholders, MP2026
also provides our capital policy for using funds for investment
in future growth. We expect to have funds of approximately¥50 billion from our existing investable cash and cash
equivalents and from the operating cash flow generated by
MP2026 after spending on human resources and R&D, andwe will use roughly 85% of that for addressing issues thatarise and for investment in future growth.
Of that amount, about 30% will be earmarked for
growth investment to counteract labor shortages by adding
personnel, enhancing our training programs, and improving
compensation, as well as by developing new businesses,
broadening our recommendation activities, and advancing
digital transformation within the company. Twenty percent
will be allocated to software investment for the service
business and equipment maintenance and renovation. In
addition, approximately 35% will be used for spending,
M&A, and other strategies aimed specifically at achieving
our goals for 2030.
All of these investments will have clearly identified
targets and are aimed at generating cash flow in the future.

(yen)
180
160
140

Ordinary dividend

20
0

39.8

29.5

24.5

Aim to increase ordinary dividends for the 12th consecutive fiscal year

40th anniversaryof assignment toFirst Section

40

30.9

Consolidated
payout ratio (%)
Commemorative dividend

100

60

38.2

37.3

31.9

15.6

120

80

21.7

42.9

50th anniversary
135
30

Listedon TSE
30
5
25

40
10
30

30

30

35

FY9/09FY9/10FY9/11

FY9/12

FY9/1345

55

65

FY9/14

FY9/15

FY9/1675

85

FY9/17

FY9/1895

105

FY9/19FY9/20FY9/24
Dividend forecast
140

150

160

FY9/22

FY9/23

FY9/24(Forecast)115

FY9/21

Interim: 80 yen
Year-end: 80 yen
Annual: 160 yen

Mitsubishi Research Institute Group Report 2023

46

Group Structure Driving Business Strategies

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Using the Group’s combination of think tank andIT strengths to provide unique value
Group structure
The Group comprises the Think Tank & Consulting Services
segment and the IT Services segment. The former offers
research and consulting services related to government policy
and general business, involving all Group companies. The
latter provides software development, operation, maintenance,
information processing, and outsourcing services.
Our customers and society as a whole have highexpectations for us to use our diverse business functions
and integrated strengths to create and apply effective
solutions and services for increasingly advanced andcomplex issues.
We are combining the Think Tank’s accumulated
knowledge and expertise and our Group companies’
technological capabilities to become a think tank and IT
group that brings the Future to the world.

Message from the President & CEO of Mitsubishi Research Institute DCS
Mitsubishi Research Institute, Inc.
Areas of expertise

Research and recommendations for addressing policy andsocietal issues, practical design of ways to create new value
Big data analysis, extensive simulation track record, data model
construction

Technology

Mitsubishi Research Institute DCS Co., Ltd.
Areas of expertise

Design, development, and operation of systems for financial
institutions, digital transformation implementation forcompanies in all fields
Proprietary data centers for system outsourcing, AI, ERP, data
analysis, and robotics
80.0%

Technology
Investment ratio

Areas of expertise

Cloud solutions, including Microsoft software, to support thedigital transformation of companies
Total support for company IT environments, from consulting tosolution implementation and operations
18.8%

Technology
Investment ratio

Areas of expertise

IT solutions for local governments and industries including
finance, insurance, logistics, and manufacturing
Integrated IT services from consulting to design,development, operation, maintenance, and evaluation
19.5%

Technology
Investment ratio* Equity-method affiliates

The relationship of our business strategy and business units

In this capacity, the unit holds strategic meetings with top
management from MRI and DCS and promotes Group-wide
initiatives, such as digital marketing.
In addition, MRI’s Business Platform Unit and the DCS’s
Consulting & Sales Unit and Technology Unit work together
to promote domestic and overseas sales, develop new
businesses and products, participate in external collaborations,and support the Group’s business strategies.

Group business structure

Think Tank Function
Societal andPublic Innovation
TTC

Digital Innovation

Business
Platform
Unit

Financial System
Innovation

TTC

Think Tank Unit

TTC

Public Innovation Unit

TTC

Societal Innovation Unit

Insights shared throughout Group

ITS

TTC

Digital Innovation Unit

TTC

(Financial Consulting Division)

Hiroki Kameda
President & CEO,
Mitsubishi Research Institute DCS Co., Ltd.

Japan Business Systems, Inc.*

INES Corporation*

Medium-Term Management Plan 2026 links the Think
Tank & Consulting Services (TTC) function with our IT
Services (ITS) function in each of our strategic businessdomains to further strengthen the Group synergies forcreating value. MRI and DCS are collaborating to advancemeasures in the strategic domains presented below.
The Digital Innovation Unit, for example, is deepening
its collaboration with DCS and acting as the hub forcollaboration with Japan Business Systems and INES.

Harnessing the power of IT and DX
for a sustainable future

ITS

Industry & Public Unit

Financial and Payment& Transaction Unit

ITS

ITS

Technology
Unit

Consulting &Sales Unit

Mitsubishi Research Institute DCS has been steadily
expanding its base of customers since its launch in1970 by providing innovative system architecture andservice businesses. Since becoming a core companyof the Mitsubishi Research Institute (MRI) Group in
2004, the company has been providing services
ranging from Think Tank & Consulting Services to IT
implementation to establish a presence as a company
providing solutions for client and societal issues.
Over our more than half a century, we havebecome particularly adept at constructing systems forfinance, manufacturing, and other industries and inproviding a vast palette of services, including
business process and payroll outsourcing, online
school admissions services for all grade levels, andintegrated cloud services. We also have a data center
providing clients with operational and administrative
business process outsourcing (BPO) and data
analytics. We have industry-leading management
capabilities, as attested by our CMMI* maturity Level
5 status, and we intend to use those capabilities tocontinue offering high-quality services.
The MRI Group aims to be a collection ofcompanies implementing technologies for the future,
and we will use all four of our strengths to play ourrole of constructing and implementing IT and digitaltransformation (DX) services that are elegant andinspire wonder. We currently are actively engaged inproviding enterprise resource planning solutions andsystems modernization for the manufacturing,logistics, and electric power industries. We are alsocollaborating with MRI to develop the Public DX

business. In addition, we are applying the Group’s
highly specialized technologies to advance R&D and
explore new fields, such as using AI to construct data
analysis platforms and to enhance development andoperating efficiency for the manufacturing industry.
We will be further deepening collaboration with
MRI to continue enhancing our consulting services
and expertise so we can even more proactively offer
effective IT development solutions that overcome
customer issues both upstream and downstream.
We will also continue boosting our capabilities bystrengthening partner collaborations and conducting
strategic investment.
Another part of our growth strategy is the recent
establishment of our Digital Academy. The academy
will strengthen our ability to develop humanresources—our greatest asset—by providing
employees with reskilling training to stay on top of
the rapid changes in technologies and the businessenvironment. We are also setting up flexible work
systems and an office environment to provide
conditions where our employees can maximize
their potential.
The future is anything but certain, but it is certainthat IT and DX will be crucial for our customers andsociety to continue to prosper. Mitsubishi ResearchInstitute DCS takes pride in providing IT infrastructureused in society and people’s daily lives. Our ambition
is to leverage the advantages of IT to create asustainable future and be a company that contributes
to customers and society through IT that improves
convenience and elicits wonder.

* Capability Maturity Model Integration (CMMI) is an international index evaluating the maturity level of a company’s software development processes

47 Mitsubishi Research Institute Group Report 2023

Mitsubishi Research Institute Group Report 2023

48

Business Unit Strategies

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Business unit strategies

Think Tank Unit
Yoko Takeda
General Manager,
Executive Officer,
Research Fellow

Combining our knowledge and scientific insightto provide recommendations for building
a prosperous and sustainable society
Basic strategies
With the world facing increasing uncertainty, increasing
importance is being placed on research and recommendations
that will help countries and companies resolve the issues they
are confronting. Against this backdrop, the Think Tank Unit
is responsible for our Research & Recommendations
activities, which have become the foundation of the Group’s
value creation model.
Our primary operation is to independently analyze
international situations, economic developments, andtechnology trends. We then formulate recommendations
from a long-term perspective on what form society can takeThink Tank Functionin the future and the steps needed to realize that society. We
share our recommendations with governmental entities,
industry associations, corporate councils, and the media inorder to inspire new societal trends and create social value.
The unit’s business activities enhance the Group’s presence,
strengthen the capabilities of our researchers thereby increasing
the Group’s non-financial value, and lead to the creation of
new businesses engaged in societal implementation.
Focus points
The distinguishing features of our research andrecommendations are the fusion of researcher knowledge
spanning a wide range of fields and a foundation in scientificinsight. We use knowledge accumulated through our researchand consulting services to provide recommendations that are
deeply rooted in reality and that can serve as starting points
for the real-world application of solutions. Under
Medium-Term Management Plan 2026 (MP2026), we will
expand our research network in Japan and overseas while
broadening our co-creation activities. These are part of oureffort to fortify our research foundation and highlight ourunique capabilities, which will make our research andrecommendations even more effective for formulating
government policies and corporate strategies.

Societal Innovation Unit
Tatsuya Nakabushi
General Manager,
Executive Officer

Consulting services that lead change andservices providing solutions to societal issues
Basic strategies
The Societal Innovation Unit operates two businesses
covering the four domains of energy & sustainability, humanresources, regions & communities, and healthcare primarily
for the central government and the private sector. The
consulting business supports governmental policy proposal,
system design and testing, and business strategies. The
societal solutions and services business develops and operates
subscription-based businesses implemented by MRI and withpartners to contribute to the transformation of and solutions
for our clients and society.

Digital Innovation Unit
Public Innovation Unit
Tetsuya Hanyu
General Manager,
Executive Officer

Allying with industry, government, and academia
to find solutions for public sector issues
Basic strategies
The Public Innovation Unit’s main clients are Japanese
governmental agencies, to which it provides recommendations
addressing the country’s increasingly complex societal issues
primarily in fields that are closely related to public policy,
including healthcare, societal infrastructure, information andcommunications, and security. The unit advances co-creation
activities between the Group and partners in industry,
government, and academia at every stage from research and

49 Mitsubishi Research Institute Group Report 2023

Societal and Public Innovation Businessrecommendations to policy design, business promotion, andsocietal implementation geared toward a vision of society
after current issues are resolved. The nature of the Public
Innovation Unit’s business makes it a starting point for theGroup’s future growth.
Focus points
As society’s demands for resolving issues become more
complex and advanced, expectations are increasing for ourunit to apply its extensive knowledge on policy to develop
comprehensive multi-departmental recommendations for thecritical issues facing our country. MP2026 responds to theserising expectations by calling for increasing our humanresources and strengthening our capacity for taking on andprowess at growing projects. We will also provide moreclarity on the projected outcomes of our activities, particularly
for public DX, and invest management resources for growthin each business domain. In addition, we will actively use AI
to improve the productivity of our operations and strengthen
our foundation for providing value to our clients.

Yoshihiko Ito
General Manager,
Managing Executive Officer

Advancing client DX with total support fromstrategy planning to implementation
Basic strategies
The Digital Innovation Unit engages in DX businesses thatuse digital technology to resolve societal and management
issues in the general industrial, financial, and public sectors.

• DX consulting business: providing total support from strategy

planning, business model and business process reform to system
implementation• Data analytics and AI business: developing AI applications withvarious data companies• DX support business: providing public sector DX support such as
updating core governmental, medical care, and disasterprevention systems

In addition to these operations, which are key drivers ofSocietal and Public Innovation Business

Focus points
We apply our VCP Management for business growth byapproaching the increasing complexity, critical urgency,
globalization, and uncertainty of societal issues asbusiness opportunities.
We are strengthening our consulting business byleveraging our policy and system expertise and oursimulation capabilities while also expanding the scope andimproving the efficiency of our operations by taking onlarger-scale products, raising our unit prices, applying AI
and digital transformation (DX), and stepping up ourrecruitment activities. The societal solutions and services
business is taking full advantage of our strong consulting
business while integrating the latest AI, blockchain, andDX technologies to further broaden the range of ourdistinctive services. We are also seeking to increase
earnings in our subscription-based businesses by making
priority investments in growth areas and strengthening
our business development and sales conducted withpartner companies.

Digital Innovation Businessthe Group’s growth, the unit also applies the company’s
pioneering Think Tank DX to advance the development of
our technologies and businesses.
Focus points
In the age of VUCA, the factors causing changes in thebusiness environment are becoming more complex, anddigital technology is becoming increasingly critical for
addressing the rapid changes. The unit is strengthening its
DX Journey® services by vertically integrating the Group’s
knowledge of policy, regulations, industry, and supply anddemand with its abilities in management analysis, AI
integration, and digital implementation. This enables us toprovide total support from strategy formation throughimplementation (p. 39). The company also serves as a hub
to support the creation of new value for our clients bymaking comprehensive use of AI, internal data, and external
data from various industries. We plan to collaborate withnew partners, implement non-organic initiatives, andaccelerate the selection and concentration of strategic
business domains. Under MP2026, we will apply VCPManagement and also consolidate our management as we
further expand the Group’s DX business.

Mitsubishi Research Institute Group Report 2023

50

Business Unit Strategies

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Business unit strategies

Mitsubishi Research Institute DCS
Financial and Payment & Transaction Unit

MRI Research Associates, Inc. (MRA)
Hirofumi Suzuki
President

Using our strength in simulation andanalytical technologies to provide
increasingly essential EBPM
Basic strategies
Evidence-based policy making (EBPM) is becoming a corefeature of efforts by government agencies and public companies
to address the increasing complexity of societal issues. MRA is
engaging its strengths in simulation and analytical technologies
as a technology partner of the MRI Group. We support theplanning, implementation, and assessment of policies necessary
for developing, maintaining, and strengthening societal
infrastructure covering both hard infrastructure, such as urban
facilities, transportation and power grids, and water and sewage

Mitsubishi Research Institute DCS
Industry & Public Unit
Shoji Kimoto
Unit Head,Managing Director,
Managing Executive Officer

Becoming a true partner using IT and DX toprovide solutions to societal and customer issues
Basic strategies
Our activities cover a wide range of areas. In the Industry &Public Unit, our ERP business provides enterprise resource
planning (ERP) and related DX solutions and data analysis
for manufacturing and distribution operations. Our solution
business helps government and public agencies with theirsemi-public sector projects that are based in policies. And ourservice business offers the PROSRV® HR business process
and payroll outsourcing service, and the miraicompass®
online school admissions service.
We are seeking to continue growing our business byworking with MRI to quickly identify a wide range of

51 Mitsubishi Research Institute Group Report 2023

systems, and soft infrastructure, including medical andlong-term care, disaster prevention, decarbonization, and thecircular economy. We aim to leverage our inherent mobility toenhance the value the Group provides and to realize aprosperous and sustainable society.
Focus points
Our activities encompass a broad range of public sector projects.
Among these, we will increasingly focus on areas withsignificant societal impact, such as green transformation andresource recycling, intense disaster prevention measures,
medical and long-term care, regional transportation, andinfrastructure maintenance and management. We will use ourstrengths in simulation and data analysis to fortify the businessfoundation of B) Analysis & Conceptualization and C) Design& Testing. We will be particularly active in helping develop
the Group’s digital transformation (DX) business in the areasof medical care, long-term care, and disaster prevention.
Development of MRA’s business will include actively
engaging our specializations in overseas research andstatistical analysis in the areas of societal safety (crime andchild safety measures), labor, and gender equality.

Societal and Public Innovation Business
Digital Innovation Businesscorporate and public sector IT and DX needs and toenhance our ability to be proactive in proposing projects.
Focus points
We are looking to the private-sector DX and IT markets
where we will leverage the consulting function that westrengthened under MP2023, our track record as an ERP
prime vendor, and investment to develop our services.
We are also pursuing growth opportunities for our public
sector operations, such as with the Digital Agency and fromprocurement reform, and are accelerating the integration of MRI
knowledge into our system development capabilities. Under
MP2026, we are aiming to be a true partner, working with ourclients and partners to use IT and DX to create solutions forsocietal and customer issues. Our focus points will be:• Providing one-stop solutions from consulting to installation,
operational assistance, and establishment• Forming composite solutions to complex customer issues• Using ERP as a starting point for expansion into peripheral areas• Accumulating achievements in the public sector from the combination

Makoto Fukushima
Unit Head,Managing Director,
Managing Executive Officer

Creating a new business model centered on
our expertise in financial institution DX
Basic strategies
The Financial and Payment & Transaction Unit generates IT
solutions for the development of banking systems, including
support for the digital transformation of operations, and forthe full range of settlement operations in B2C and B2Bcommercial transactions. Our main customers are major
financial institutions, credit card companies, and other financial

Mitsubishi Research Institute DCS
Technology Unit
Yuji Nagami
Unit Head,Managing Director,
Managing Executive Officer

Combining our leading technologies andmaximizing our capabilities to supportclient value creation cycles
Basic strategies
We provide infrastructure development and contract
operation services for our existing customers, new clientcompanies, public utilities, and other clients who arestruggling from the shortage of human resources trained in
information systems. We are also providing consulting
services and are expanding our coverage to encompass therecent growth in our cloud business, operation business,and data analysis and AI services. In the cloud business, weare upgrading our services from our foundation of providing
high-quality infrastructure and analysis platforms aimed at

Financial System Innovation Businessand settlement business operators, foremost of which is the
Mitsubishi UFJ Financial Group (MUFG). The unit has beena core business of DCS since the company’s start and is thefoundation cultivating the customer base we have built up overmany years of developing and maintaining financial systems.
We are using our vast knowledge of systems and operations
to develop new clients and formulate a new business model.
Focus points
Technological innovations are revolutionizing how customers
make payments, and client needs are becoming moresophisticated and diverse, such as the need to participate in
upstream processes, to dehost from aging core systems, andto use data in new ways. While meeting these needs, we will
also be seeking new clients and engaging a new businessmodel, which will become core drivers of next-generation
earnings. We aim to establish the unit as a business partner
as our clients address their business issues.

Societal and Public Innovation Business
Digital Innovation Business
Financial System Innovation Businessbranding to also offering consulting-based operation
outsourcing services. We are also fortifying our technicalproposal capabilities and working with MRI to move our
focus to more upstream processes. Through this, we areaiming to maximize the value we provide to clients anddevelop applications for other businesses.
Focus points
Our foundation lies in creating technology strategies geared
to market trends and business strategies and improving ourtechnological capabilities throughout the organization. We
use this foundation to strengthen our products, such asproviding solutions and services based on our own researchand development activities. We will also make full use of ourleading technologies to continue improving and enhancing
the productivity of our development activities. In the MP2026,
we aim to increase the number and raise recognition of thesolutions and services we provide that help our clients
overcome issues. We will also link together a new value
chain for supporting our client value creation cycles thatstarts with consulting and then progresses throughimplementation, operation, and analysis before starting
again with consulting.

of DCS system development and services and MRI consulting
Expandingof DCS’s original service businesses into human•resources, education, music publishing, and new fields

Mitsubishi Research Institute Group Report 2023

52

ⅠⅠ

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

How We Address Societal Issues

Three transformations fora sustainable future—HX, GX, DX
Continual investment in capital to support growth

Financial valuep. 55

Initiatives for a sustainable society of health and longevity

HX

Human Resource and
Healthcare Transformation

Financial
capitalIndividual wellbeing

A

Digital transformation for
medical and long-term care Employees
Analysis &Conceptualization

Shareholders,investors
Building a system for labor mobility across industries and occupations

Green Transformation

Vision for 2070

Public sector
entities

Value forour clients
Privatecompanies

Digital Innovation BusinessIntellectual and
Co-Creation
Foundation
Intellectual capital
RelationshipcapitalTechnology transforming society

Human resources

A corporate Group leading
societal change for the future

Human capital

GX

p. 57

Using our business torealize our aspirations
for the future

Think Tank Function
Individual wellbeing

Societal and Public Innovation
Business

Human
Foundation

Societal sustainability

Materiality

B

Research &Recommendations

Non-financial
capitalIndividual wellbeing

Accelerating the transition to a carbon-neutral society
Financial System
Innovation
with a circular economy
drivenby renewable energy
Business

p. 59
International
and local
communities

Societal sustainability Renewable energy & circular economy
D
C
Societal
Implementation

Design &Testing

Students,
mid-career hires

Social Trust
Foundation

Social value

Building a prosperous andsustainable society in an era
when world population willreach 10 billion and 100-year lifespans will be commonplace

Material issue

Our sustainablegrowthBusiness partners

Combining digital infrastructure and digital safety tocreate a new dimension of digital society

DX

Technology transforming societyp. 61

Non-financial value
Digital infrastructure

Expansion of our recruitment and co-creation network
through the enhancement of our reputation and brand value

Digital Transformation

53 Mitsubishi Research Institute Group Report 2023

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54

Value Creation Model

How We Address Societal Issues

HX

Human Resource and
Healthcare Transformation

Initiatives for a sustainable society ofhealth and longevity
Individual wellbeing

Akira Enomoto
Healthcare VCP Manager

IV Initiatives to Support Value Creation

Financial and Corporate Datarequirements, aligning a procurement structure, andsupporting process management across all areas associatedwith government policy. This includes medical insurance,long-term care insurance, disability welfare, and disease
control covering infectious diseases, intractable diseases,
pediatric chronic diseases, and vaccinations.
We are helping normalize preventive medicine practices
by supporting government policy evaluations by
incorporating big data analysis into defined health exams,
specific health guidance, and long-term preventive care.

Digitalizing vaccination system administration

We are assisting in the national government’s efforts todigitalize its vaccination programs in light of issues that
became apparent during the covid pandemic. These include
system inefficiencies, inadequate ability to monitor vaccination
status, and the need for the ability to quickly examine thevaccine efficacy and safety, including vaccine effectiveness andside effects.
The project will digitalize administrative tasks that are
currently paper-based from recommendations through tobilling. This will expedite vaccination procedures and enable
more up-to-date monitoring and analysis of the vaccination
status, effectiveness, and safety. The project will be an
important step toward more advanced implementation of
infectious disease control measures.

Local
governments

National Health
Insurance Organization

Ministry of Health,Labour and Welfare

Anonymization
Immunization records and pre-examination
information management system
Online qualification verification system

People eligible
for vaccination

Study and researchof vaccination
effectiveness and safety

Medical institutions

Conceptualization anddesign of system

Social value creation during MP2026

Societal issues&
A Research
Recommendations&
B Analysis
Conceptualization• Quantify and propose scenarios
for using digitalization toeliminate the supply anddemand gap• Assist in the design of effective systems• Demonstrate medical and long-term careefficiency&
C Design
Testing

D Societal
Implementation• Develop systems for DX
that contribute toevidence-based
policymaking

Social value created (outcomes)
Initial period

Intermediate and final period

III The Source of Our Advantage

For Japan to realize a sustainable society of health andlongevity, it must improve the efficiency, productivity, andquality of the system under which medical and long-termcare services are provided. We have set FY9/26 as the year
in which we want to establish medical DX as the foundation
for achieving those improvements.
We are advancing medical DX by helping put in place
the essential elements of a society-wide information
system infrastructure. This involves defining the system
Case study

Social value creation process and outcome targets

Maintaining medical and longterm care systems in an aging
society with a declining birthrate
and avoiding QOL decline

II How We Address Societal Issues

Main initiatives

Digital transformation for medical and long-term care

Medical and nursing care costs amount to roughly ¥50 trillion annually inJapan, and we estimate that cost will rise above ¥100 trillion by 2050. Lowering
the burden of these costs as the population ages and supporting quality of life
amid increasing chronic diseases will be essential.
We have been able to quantify how preventive medicine could reduce
medical demand and how digital technology could boost productivity to help
close the anticipated gap in medical capacity and demand. This data informs
the scenarios we propose to achieve those measures. We are also helping
demonstrate effective evidence-based medical system configurations and services
that can increase productivity while reducing costs for medical and nursing care.
In addition, we are working to establish a foundation for digitaltransformation (DX), which will make evidence-based policymaking possible
across the medical and long-term care fields. We will continue to support thetransition to sustainable medical and long-term care insurance systems andhelp create social value as an outcome of a growing private sector, which
complements the public insurance structure.

I Growth Strategy

Establish evidence-based medical and long-term care policies, normalize and digitalize preventive medicine toincrease productivity (Case study: p. 56)

Social value created as outcome
We are contributing to the formulation of evidence-based
medical and long-term care policies by helping implement
medical DX that will enable the use of big data to frame andevaluate government policy.
We are also helping normalize preventive medicine

practices by supporting development of private-sector
services that complement the public insurance system.
We are working to ensure that digital technologies anddatabases see greater use in medical and long-term caresettings to improve the efficiency of operations.

Transit to a sustainable medical and long-term care insurance system, increase private business that complements the public
insurance system

Digital transformation for a sustainable society ofhealth and longevity
Since joining the company, my work has centered on enabling and promoting
evidence-based policymaking (EBPM) in the fields of medical insurance,long-term care insurance, and disability welfare. This fiscal year, we started
working on a project for long-term care DX with the aim of improving
productivity and service quality at care sites.
Bringing about digital transformation brings a host of challenges, such asaltering on-site operations, working with local governments, coordinating withrelated parties, and restructuring programs. Although there are many difficult
aspects to the work, I feel rewarded every day because I feel like what I do
directly helps society.

55 Mitsubishi Research Institute Group Report 2023

Risa Tashiro
Healthcare DX Consulting Group,
Healthcare DX Division,
Digital Innovation Unit

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56

Value Creation Model

How We Address Societal Issues

HX

Human Resource and
Healthcare Transformation

Building a system for labor mobility across industries and occupations:people find the jobs they want and companies find the people they needIndividual wellbeing

Human resources

The changes that green transformation and digital transformation are having on
the structure of industry are expected to significantly change what companies
require from their human resources. This will only deepen the mismatch insupply and demand between the jobs that people want and the jobs thatcompanies need to fill. We estimate that in 2040, the labor shortage will begreater than one million people and span the spectrum of occupations.
Our work quantifies projected future mismatch and provides
recommendations for eliminating the problem. We propose creating a labormarket common language, standardized job descriptions that can be used acrossindustries. Having a common language will close the mismatch by giving
initiatives for reskilling and workforce movement needed steam. We are also
assisting in designing a system for publishing worksite information, an essential
for human resource mobility. Our research and proof-of-concept projects
feature human capital management as well as regional reskilling activities.
We run services to match companies with individual workers based on ourlabor market common language. This should make it easier for workers totransition into growth fields while producing the social-value outcomes, such as apositive cycle in which companies and people mutually enhance each other’s value.

Human Resources VCP Manager

IV Initiatives to Support Value Creation

Financial and Corporate Data

prefectural groups examining public labor and managementin areas such as clarifying the specific skills required by jobs,
creating environments where people can learn whileworking, and establishing effective labor management.
In addition, our JOBMINEs™ human resource matching
service is helping revitalize the movement of humanresources by using a labor market common language toconnect companies and individuals.

Developing human resources for the semiconductor manufacturing industry with JOBMINEs™

Semiconductors are essential to next-generation industries. The
semiconductor industry has entered an age of global competition,
and world-leading semiconductor manufacturers in Japan andabroad are receiving governmental support as they work together
to build up their local industries. The semiconductor
manufacturing and related industries have an urgent need tosecure on-site workers, such as manufacturing engineers capableof realizing a rapid ramping up of production. Our JOBMINEs™
human resource matching service combines the manufacturing
placement experience and expertise of Nisso Corporation tobring qualified individuals to the positions of need. We areworking with Nisso to assess job needs in semiconductor
manufacturing. The collaboration is using these results to develop
reskilling and connect companies to optimal human resources.
JOBMINEs™ aims to provide a steady flow of position
candidates by making it possible to connect with engineers who
may not have direct experience in semiconductor manufacturing
but whose skills are highly transferable. It also identifies when alack of experience can be effectively supplemented with educationand training.
• Human resource
matching service(2) Human resource development• Data-based placement and training programs(human capital management)• Education and training at Nisso facilities(3) Steady supply ofhuman resources

Semiconductor manufacturing plant

Source: Nisso Corporation and Mitsubishi Research InstituteSocial value creation during MP2026

Societal issues&
A Research
Recommendations&
B Analysis
Conceptualization• Quantify future supply-anddemand mismatch and proposea labor market common language• Support design for systems facilitating the
movement of human resources• Support for promoting and spreading humancapital management• Support for developing regional reskilling activities&
C Design
Testing

D Societal
Implementation• Matching service forcompanies and workers
using common language(Case study: p. 58)

Social value created (outcomes)
Initial period

Intermediate and final period

Main initiatives

III The Source of Our Advantage(1) Visualization ofhuman resources

Social value creation process and outcome targets

Eliminate human resource
supply and demand mismatch

II How We Address Societal Issues

We act as the secretariat of the Human Capital Management
Consortium created by the Ministry of Economy, Trade andIndustry. The consortium seeks to erase the mismatch
between companies and job seekers by exploring a systemfor disclosing information on the actual working conditions
at companies.
The consortium is also laying the groundwork for thesmooth regional movement of labor by supporting
Case study

Yoshiki Shimizu

I Growth Strategy

Social value created as outcome
We are advancing initiatives to provide greater disclosure
about the status of corporate human capital management
and worksite information to the labor market with theaim of transforming the relationship between companies

and individuals.
We also support regional reskilling efforts and offer
matching services to help individuals smoothly transition
across different industries and occupations.

Change the relationship between companies and individuals, matching human resources across industries
and occupations

Facilitate smooth movement of human resources to growth fields, form a society with companies and people mutuallyenhancing each other’s value

I feel that our efforts to address societal issues andprovide the required services help lead to the overall
optimal solutions for society
My work has covered everything from independent research on the mismatchin human resource supply and demand to commissioned research on labormarket information disclosure, which is part of the infrastructure needed forsmooth human resource movement, and to developing a task-based humanresource matching business that facilitates human resource mobility.
The VCP Management I engage in has included identifying the structuralelements behind societal issues and using that to envision the ideal movement
conditions for human resources, and then developing and providing services
that overcome any obstacles. This makes me feel like my work is not justaddressing small, specific issues, but rather contributing to overcoming larger
issues to make society as a whole better.

57 Mitsubishi Research Institute Group Report 2023

Kazuya Nishizawa
Policy and Strategy Group,
Human Capital and Career Division,
Societal Innovation Unit

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Value Creation Model

How We Address Societal Issues

GX

Green Transformation

Accelerating the transition to a carbon-neutral society
with a circular economy driven by renewable energy

Japan aims to achieve carbon neutrality by 2050. To be successful, it will needto make renewable energy the main power source and transition to a circular
economy as quickly as possible.
We conduct research outlining a carbon-neutral, circular-economy future
and propose concrete steps for making it a reality. Our publications also
include the effects that could be gained by each step as well as differing
scenarios for achieving goals. Concurrently, our work supports thetechnological development, program design, business feasibility evaluation,and policy formulation needed to foster a circular economy.
We are helping society undergo a green transformation (GX) withprojects targeting distributed energy resources (DERs), such as batteries,
and technologies including advanced solar power generation systems,
offshore wind power, and hydrogen energy sources.
We offer related services ourselves, such as software development for use
under a circular economy and for DER planning and implementation. These are
one part of how we work to create social value by speeding up the establishmentof a circular-economy society that primarily uses renewable energy.

II How We Address Societal Issues

Main initiatives
Many power companies have projects to incorporate storage
batteries into their systems for the new opportunities
presented by DERs, a promising technology, expected totake off in FY9/24.
In January 2022, we launched the MRI Energy Resource
Solution (MERSOL) service (p. 44) Level 1 based on
proprietary algorithms to support companies using DERs.
The MERSOL service Levels 2 and 3 expand support tobusinesses operating storage batteries, helping them

Renewable energy & circular economy

Social sustainability

I Growth Strategy

Case study

Hiroyuki Sasada
Energy and Circular Society VCP Manager

Financial and Corporate Data

formulate plans to maximize their operating profits. We
also provide services for forecasting regional electricity
demand, or distribution future energy scenarios (DFES),
that reflect each region’s circumstances, such as DER
availability and demographics.
We are also developing an application that will connect
companies seeking to achieve carbon neutrality with providersof recycled plastics for use as raw materials—another key
initiative for the circular economy.

In FY9/23, our Societal Innovation Unit and Digital
Innovation Unit began developing and testing a software
application that will expand the recycling market byfacilitating information sharing between suppliers of recycledplastics, such as recycling operators, and businesses that canuse recycled plastics, such as manufacturers.
The project aims to construct a resource recycling platform
centered on software that will match users to providers while
offering functions including traceability of recycled plastics
and assessment of environmental value.

Recycled plastic supply-demand matching
Recycled plastic
suppliers

Recycled plastic
composition andorigin data

Recycled plastic
user

Recycled plastic
user-supplier
matching app

Criteria data,such ascomposition and origin

Criteria-based match list

Recycled plastic
suppliers

Plastic resource
recycling platform

Recycled plastic
users

Assessment of environmental value
Traceability
Recycled plastic
collectors

Plastic material
users & suppliers

Social value creation during MP2026

Societal issues&
A Research
Recommendations&
B Analysis
Conceptualization• Propose a future vision andconcrete measures to achieveboth carbon neutrality and acircular economy• Assist in developing technology and designingsystems for balancing energy supply and demand
for a society centered on renewable energy• Help create a viable circular economic system&
C Design
Testing

D Societal
Implementation• Provide services using
DERs and services needed
to realize a circular
economySocial value created (outcomes)
Initial period

Intermediate and final period

IV Initiatives to Support Value Creation

Building a platform for recycled plastic

Social value creation process and outcome targets

Early transition to a circulareconomy society poweredprimarily by renewable energy

III The Source of Our Advantage

Construct a stable power supply and demand system that uses distributed energy resources, introduce advanced
initiatives for a society with a circular economy (Case study: p. 60)

Social value created as outcome
Our MERSOL service enables operators to optimize theuse of storage batteries for various applications, including
renewable energy, the energy grid, and consumer use.
Increasing the use of DFES will enable customers to
identify sites of transmission and distribution overload sothey can develop effective equipment configurations.
These efforts are contributing to creating a nationwide
stable power supply system, including the use of DERs.
In addition, our software application will help local
communities and private companies to spur initiatives fora circular economy.

Rapidly establish renewable energy as the main power source (Japanese government targets 36–38%), accelerate the formationof a society with a circular economy

The joy of helping develop services that are directly linked toresolving societal issues
I am the project leader of BlueGrid DFES, a new service for forecasting regional
electricity demand. Forecasting demand for electricity requires expertise inenergy policies and systems, utility grids and markets, data analysis, and digitaltransformation. I developed the system alongside a group of highly experienced
colleagues, and we are now working to expand its use.
Forecasting electricity demand is a very complex task, but it helps reduce
costs for both power providers and the public. Knowing that my work is
contributing to society gives me great joy.

59 Mitsubishi Research Institute Group Report 2023

Hiroshi Hanakago
New Business Development Group,
Energy and Sustainability Division,
Societal Innovation Unit

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60

Value Creation Model

How We Address Societal Issues

DX

Digital Transformation

Combining digital infrastructure and digital safety tobring society to a new digital dimension
Technology transforming society

MRI provides research, consulting, and other services forevery stage of development from R&D to demonstration,
implementation, and infrastructure development. Our work
encompasses projects developing digital infrastructure forpublic safety agencies to use regularly and in times of
emergency, such as the Public Safety Mobile System(formerly known as Public Safety-LTE); developing andimplementing local 5G enabling private use of high-speed
wireless environments in controlled areas; developing andCase study

Tomoki Takahashi
ICT VCP Manager

Social value creation process and outcome targets
Social value creation during MP2026

Societal issues

Responding to the information
explosion caused by the rapid
digitalization of society&
A Research
Recommendations&
B Analysis
Conceptualization• Forecast future conditions, such as thevolume of information distribution,and recommend infrastructureformats and measures for realization• Support digitalization in the public safety field,
beyond-5G development and implementation,and the transition to next-generation cloudenvironments (Case study: p. 62)&
C Design
Testing

II How We Address Societal Issues

Main initiatives

Digital infrastructure

The rapid digitalization of society is causing an explosion in the volume of
information and electricity being consumed. We forecast that in 2040 dataexchange will be 348 times what it was in 2020 and electricity consumption
will be nine times higher. This will require having a digital infrastructure inplace that makes full use of cutting-edge technologies, ensures the unobstructed
flow of information, has a low environmental impact, and ensures that
information is used safely and securely.
MRI goes a step further by applying its data flow and electricity consumption
forecasts to recommend infrastructure formats along with measures andscenarios to put them in place. We also provide support for developing andimplementing mobile systems for public safety and next-generation beyond-5G
wireless communication technology for digital infrastructure required in the
future. We also help design systems and conduct R&D for transitioning to
next-generation cloud and data-center environments.
In addition, by providing services that support a decentralized, highly efficient,and highly reliable infrastructure, we are helping create an eco-friendly, safe,
and secure environment for data exchange that will ensure digital society will
be able to function smoothly with the mass amount of information. The social
value we create, the outcome, will be a new dimension of digital society.

I Growth Strategy

D Societal
Implementation

Financial and Corporate Data

implementing new beyond-5G (6G)/NTN* core infrastructure;and designing systems for transitioning to cloud and data
center structures with a low environmental impact and thatcomply with national and regional laws and regulations.
We also provide a risk rating service to confirm thestatus of cybersecurity necessary to ensure the safety andsecurity of the digital infrastructure used in social andindustrial supply chains.
* A non-terrestrial network (NTN) is a multi-layered network for mobile receptors
covering land, sea, and air

Supporting the development and implementation of local 5G

MRI provides full support for development and implementationfrom system design to testing for local 5G networks, including forcompanies and organizations constructing proprietary
telecommunication networks covering limited areas. We haveworked with partner companies to develop effective solutions forovercoming specific issues, such as high costs and cost-effectiveness.
Thanks to this work we are now progressing to the implementation
phase with clients in various industries.
Some of our projects include incorporating AI, robots, anddrones in factories to control and guide the entry and exit ofvehicles and to facilitate patrol inspections. We are also using new
abilities to record and analyze high-definition video to enhancesafety and productivity. In the railway transportation industry, we
are using on-board cameras and AI technology to automaticallydetect equipment abnormalities, which has been proven toeffectively reduce the burden of visual inspections and patrols. The
systems have the potential to reduce costs even further if multiple
railway companies share the same system, and they could evenhelp the companies respond to the shrinking labor force and bringunmanned automatic train operation to practical use.

Social value created as outcome

Intermediate and final period

IV Initiatives to Support Value Creation

Local 5G networks in society
Agricultural anddairy areas

Densely populated
urban sites

Rural and
residential areas

Factories andindustrial parks

Logistics centers

Coastal andharbor areas• Support the operationof decentralized, highly
efficient, and highly
reliable infrastructure

Social value created (outcomes)
Initial period

III The Source of Our Advantage

Develop and implement distributed and highly-efficient networks and reliable, secure communication environments

We are providing support for several government policies,
assisting private operators who are developing
infrastructure, and helping establish eco-friendly andsecure usage environments. Our efforts in these areas arecontributing to the development and implementation of
distributed and highly efficient networks and reliable andsecure communication environments.

Realize an eco-friendly, safe, and secure information distribution environment and take digital society to a new dimension

Digital infrastructure that enhances personal safety and security
My job encompasses testing of digital infrastructure and a wide range of survey
and research projects. I am currently working on demonstrations for agovernment-led project to create a communication system that will enablepublic-safety agencies to use long-term evolution (LTE) mobile phone technology.
We provide support to various public-safety agencies who are active on thefront lines of disaster response, and we are constantly examining the digital
infrastructure and looking for ways to use it both in times of emergency and ineveryday operations. Being involved in such a large and important project forthe safety and security of society is extremely satisfying, and I am highly
motivated to do my best every day.

61 Mitsubishi Research Institute Group Report 2023

Sho Goto
ICT Infrastructure Strategy Group,
Mobility and Communications Division,
Public Innovation Unit

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62

ⅠⅠⅠ

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

The Source of Our Advantage

Culture and programs to cultivate
new knowledge and support talent successContinual investment in capital to support growthIntellectual Capital

p. 73

Relationship Capital

p. 76

A

Financial
capitalResearch &Recommendations

Non-financial
capitalFinancial value

Material issue

Employees

B

Analysis &Conceptualization

Intellectual and
Co-CreationThink Tank Function
FoundationSocietal and Public Innovation

Shareholders,investors

Vision for 2070

Public sector
entities

Business

A corporate Group leading
societal change for the future

HumanFoundation
Human capital

Value forour clients
Privatecompanies

Digital Innovation BusinessSocial Trust
Financial System Innovation
Foundation

Intellectual and
Co-Creation
Foundation

Human
Foundation
Intellectual capital
RelationshipcapitalBusiness

D

C

Societal
Implementation

Design &Testing

International
and local
communities

Students,
mid-career hires

Social Trust
Foundation

Human Resource Strategy:
Hiring, Training, and Assignment
Workstyle Reforms and
Health-Focused Management
Diversity, Equity, and Inclusion
Expansion of our recruitment and co-creation network
through the enhancement of our reputation and brand value

63 Mitsubishi Research Institute Group Report 2023

Using our business torealize a better future

Social value

Building a prosperous andsustainable society in an era
when world population willreach 10 billion and 100-year lifespans will be commonplace

Material issue

Our sustainablegrowthp. 66

Business partners

p. 69
p. 70

Non-financial value

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64

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Human Foundation
Human Resource Strategy: Hiring, Training, and Assignment
Continuous enhancement and expansion of
the new human resource policy

We aim for the sustainable growth of
our talent and the Group, a synergy ofthe higher capabilities of each
Takashi Inoue

Executive Officer,
Deputy General Manager, Corporate Administration Unit
(Officer Responsible for Human Resources)

Linking human resources strategy tobusiness strategy

Every improvement in the skills and intellectual resourcesof each employee helps resolve societal issues, fuels theGroup’s value creation, and drives the Group’s growth.
These further feed back into growth for the individual. Since
the early 2000s, we have run a full set of measures for thesustainable improvement of our people and the organization.
(1) Integrated management of HR and business strategies
We assign our talent based on an optimal human resource
portfolio to enhance our potential as an organization.
This maximizes the abilities of individual employees
toward realizing our business strategy. We examine therequired skills, a qualitative indicator, and the number of
personnel needed in each business area, a quantitative
indicator, to define the workforce demanded by long-termbusiness strategy. We then analyze gaps between the
optimal and actual situations and implement measures toclose those gaps.
(2) Supporting individual career development
We have introduced a multi-peak human resource system,
based on the FLAP Cycle® (p. 67), to enable individual
employees to build careers that reflect their strengths andaspirations. The peaks in this system represent careergoals, but not everyone is expected to aspire to a
management position. The system offers many different
peaks that our talent can aim for, illuminates potential
career paths to those peaks, and enables our diverse
workforce to perform. We also ensure that each employee

has access to the knowledge and skills required for higher
career prospects.
We host an array of training programs across thecompany and in individual units. We plan to integratethese programs under a new structure, the MRI Academy,
which launched in April 2024. It will provide the programs
needed to enhance the potential of individual employees
and realize our business strategies. It will operate intandem with the Digital Academy at Mitsubishi ResearchInstitute DCS.
(3) Harnessing the power of diversity
We are committed to providing an environment in which
a diverse range of employees, including women, mid-careerhires, non-Japanese employees, and people working under
the remote relocation system, can feel energized and reach
their full potential. We have also pursued pioneering
initiatives to promote diversity, equity, and inclusion(DE&I), in addition to health-focused management forgood work-life balance. We have forged workstyles for the
new normal (p. 69) from our experiences gained during
the pandemic, also contributing to our diversity initiatives.
While remuneration and welfare systems are essential,
enhancing employee motivation and engagement is themost important part of our human capital management.
Our employees are strongly motivated toward resolving
societal issues, and achieving this through our work drives
a positive cycle that further heightens motivation andengagement. These vital assets are the core focus of ourhuman capital management.

Enhancement of motivation & engagement

Employee growth
Career development support
Introduction of the multi-peak system, the MRI FLAP Cycle®,
the planned establishment of the MRI Academy

65 Mitsubishi Research Institute Group Report 2023

Integrated management ofbusiness strategy and humanresources strategy

Realization of our Guiding
Principles

Organizational growth
Creation of a foundation for the realizationof employee potential
Improvement of DE&I, improvement of work-life balance,
health-focused management

Our advantage is built on our ability to recruit and train
highly diverse personnel with the advanced expertiseneeded to resolve societal issues through the full
realization of our business strategies. In April 2021, wetransitioned away from the traditional system of rewards
linked to seniority to a new structure that reflects
employees’ roles, job content, and results. We are also
diversifying career paths under the multi-peak system.

Enhancing recruitment processes

MRI recruits new graduates and mid-career talentaccording to its long-term strategies. The number ofpeople hired has increased in recent years.
As part of our new-graduate recruitment processes, werun an internship program that helps students to plan theircareers while also giving them a better understanding ofour business activities. Following recent changes to rules
for hiring past student interns, we provided over 200
students with internships linked directly to recruitment in
the summer of 2023.
We actively use mid-career recruitment to attract
talented people with advanced, specialist skills. We havelaunched a system of referral-based hiring and recruitment
enhancements, such as direct recruitment and the use ofagencies specializing in highly skilled personnel.

Human resource portfolio management
based on human resource strategy

Components of our human capital
Hiringand digital transformation (DX) to manage our Value
Creation Process (VCP), which is essential to theachievement of sustainable growth.

Solution of societal issues

We have defined the human resource portfolio required toachieve our goals under Medium-Term Management Plan
2026 and identified gaps between this portfolio and ourpresent situation. On this basis, we are recruiting, training,
and re-assigning employees in line with our businessstrategy. We are prioritizing the recruitment and trainingof more diverse talent in the areas of business management

Human resource portfolio concept
Current human resource portfolio

Desired human resource portfolio

Organization A Organization B

Planning & leadership

Organization A

Optimization ofhuman resource portfolio torealize business strategy

Operations
Processing

New graduates hired, mid-career hires, and retirees

FY9/23

New graduates

Mid-career hires

Retirees

59

73

31

Internship program (summer of 2023)
Group-work type

Organization B

Internship survey results(summer of 2023)
Q. How satisfied were you with
the internship program in general?
1%
12%

n=185

Future society recommendations course
Management consulting course
Digital innovation course
DX consulting course

Contest typeAI analysis contest course

Experiential andpractical type(on individual basis)

Policy Consulting Unit*
Business Consulting Unit†
Global Business Division* Implemented by individual units† Innovation service development, career innovation, regional innovation

87%

Very satisfied
Satisfied
NeutralSomewhat unsatisfied
Unsatisfied

Enhancement of financial,non-financial, and social value

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66

Value Creation Model

Human Resource Strategy: Hiring, Training, and Assignment

Career development through the MRI FLAP Cycle®

People are our most important asset. That is why we haveintroduced and applied the MRI FLAP Cycle® as a way ofenabling individual employees to achieve continuous growthand excellence. The FLAP Cycle® is a framework forsupporting career development tailored to the abilities,
aptitudes, and aspirations of individual employees. It consistsof finding one’s aptitudes and the elements required for tasks,
learning the knowledge required for skill improvement, acting
toward goals, and performing at a new level.
At the find stage, employees survey their career
fulfillment level from three perspectives: what they wish todo, what they can do, and what they must do. The systemthen helps them to build their careers from a long-term
perspective. In addition to one-on-one interviews with
their supervisors, employees also participate in discussions
with the Human Resources Division as one instance ofcompany-wide support.
Human resource development system overview
Young employees

Middle management

Expertise

Senior management

Skill development support
Postgraduate study & self-improvement (e.g., language studies,participation in scholarly associations, and getting qualifications)Rotation program

Mentor program

Training by business units

One-on-one training

New employee
training

Seniority-based training

Group training &practical training

Amount ofexperience

Fundamentals

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

The learn stage consists of practical learning, primarily
through on-the-job training (OJT), together withseniority-based training, training for specific roles, such as
project leadership, and training in specialized areas, suchas AI and consulting. Through these various training
activities, employees acquire the knowledge and skills
required for their work. In addition, employees areseconded to other companies or transferred to other units
under a rotation program that allows them to gain practicalexperience that would be difficult to find in the units towhich they are assigned. Ten or more employees use thissystem each year. We also encourage individuals to pursue
learning in areas that reflect their own aspirations andinterests by providing skill development support, including
subsidies for postgraduate study.
Employees use knowledge and skills acquired at thefinding and learning stages to take action toward their goals
by taking up the challenge of more senior positions or
different roles. Through this process, they take theirperformance to a higher level.
We store information about the skills and careers ofindividual employees in the Talent Management System(TMS). This database is used to ensure the effective
utilization of the FLAP Cycle®.
We are continually updating our training methods in stepwith progress on workstyle reforms. We effectively
combine face-to-face training, which emphasizes two-way
communication, with input-based on-demand training,which enhances efficiency by allowing employees to study
at times that are convenient for them.

Structured training strengthened throughthe establishment of the MRI Academy

In recent years, we have maintained our ability to meetclients’ increasingly sophisticated consulting needs by
expanding our recruitment of new graduates andmid-career hires with diverse academic and professional
backgrounds. As a result, it is no longer possible toaccommodate employees’ career development expectations
solely through traditional basic training, OJT, and mentor
guidance by senior employees during the onboarding
process for new employees. A more systematic andsustained approach to training is required.
For these reasons, we are currently preparing to launch
the MRI Academy in April 2024 to enhance and systematize
our various training programs. Its primary role will be theadministration of training for young researchers andconsultants. We plan to create a training structure thatreflects the unique strengths of MRI, including ourknowledge of advanced science and technology, AI, andinnovation. We also plan to provide reskilling training
through the FLAP Cycle® for senior employees in the
future. The human resource development structure basedon the MRI Academy will be further strengthened throughcollaboration with the DCS Digital Academy established by
Mitsubishi Research Institute DCS.
The MRI Academy

Maintaining and enhancing engagement
through regular surveys

In line with our human resource strategy, we conduct
annual employee engagement surveys to ensure that MRI is
fully utilizing the value creation capabilities of its humanresources. Findings from these surveys are used as reference
data for the formulation or modification of human resource
policies and programs. The survey results are also fed backto line managers to help improve engagement in individualorganizations, while company-wide trends are shared via thecorporate intranet.
We also provide employees and line managers with
opportunities to detect any changes in their own mental or
physical health through monthly pulse surveys. Thesesurveys focus on signs of presenteeism, which can lead to
declines in productivity due to factors relating to work
motivation, enjoyment, or difficulty, as well as attendance
rates, or health issues. By repeatedly implementing thissurvey, we aim to create an organizational culture in whichpeople can communicate at any time about factors affecting
them mentally or physically, and measures to maintain andenhance their condition.
Outline of the engagement survey
We analyze variations in employee expectations and experiences in 16 areas, including
the working environment, corporate culture, performance of work, and human resource
development. We also consider and implement specific improvement measures.
Expectation score

Expectations:(High)

Our Guiding Principles
We, the Mitsubishi Research Institute, will continually envision a desirable future,
resolve societal issues, and lead change in society to co-create a sustainable andabundant future in partnership with the world.

Training our people, those who will realize our Guiding Principles

What is the level of yourexpectations toward theorganization towhich you are assigned?

(1)

(4)

Example: personnel
assessments
To what extent do you expect
assessments to be reasonable?

7.0

(2)
7.0

Experience
score(High)

Experiences:

Future co-creation
capabilities** Field knowledge & foresight

The MRI FLAP Cycle®

Guidance (e.g., interviews)
Career design training
One-on-one meetings with managers: setting contribution goals

Career chart
Career surveys

Interviews

Find
CAN
Skill & specialty
checksMUST
Contribution
targets

Remuneration
Internal qualifications, mission grades, etc.

Perform
Assignment

What isyour actual
experience?

(3)• Politics & economics• Society & culture• Industry• Science & technology• Advanced technology(generative AI, etc.)

Example: personnel
assessments
I feel that assessments
are reasonable.

(Low)

One-on-one meetings with managers: career design

Review &revision

WISH

Financial and Corporate Data

Human Resource Strategy: Hiring, Training, and Assignment

Effective goal-linked training

Overseas study, secondment for training,
and internal rotation

I Growth Strategy

SupportSupplementary support

Career interviews with Human Resources Division
Outside experts
Career counseling, etc.

Learn

Act
Training

Training

Skill development support
Rotation program

Transfers & assignment of new roles

OJT & performance of duties

Problem solving &business conceptualization skills• Policy consulting• Management consulting• Digital transformation &IT consulting• System development &administration• New business planning &operations(1)

EX score*: highExpectation-experience: both highGap: small(3)

EX score: somewhat low
Expectation-experience: both low
Gap: mixture of big and small(2)

EX score: somewhat highExpectation-experience:both medium
Gap: small(4)

EX score: low
Expectation-experience:
expectations high, experience low
Gap: big

Problem solving skills• Conceptualization & insight• Communication & expression• Collaboration & relationshipbuilding• Specialization• Empathy* EX score: employee experience score

Used as perspectives in planning training programs
Collaboration
DCS Digital Academy

67 Mitsubishi Research Institute Group Report 2023

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68

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

Workstyle Reforms and Health-Focused Management

Diversity, Equity, and Inclusion

Office space and IT measures to accelerate
workstyle reforms

Initiatives targeting DE&I as a priority policy

We respect the autonomy and diversity of our employees,
and we have developed a variety of office space and IT
measures to enable employees to work flexibly according
to their diverse life stages.
(1) Hybrid workstyles
During the covid pandemic, we introduced hybrid
workstyles combining physical and remote attendance.
This brought major efficiency improvements, including
reduced travel time and the ability to work collaboratively
with employees in remote locations. Based on theseoutcomes, MRI will continue to support hybrid workstyles
as a way of accommodating diversity and fostering a goodwork-life balance.
(2) Enhancement of office space
We have facilitated communication among employees bycreating open communication spaces on each floor as
venues for activities ranging from small group meetings tolarge gatherings of 30–40 people.
(3) Dual employment
Since 2018, employees have been allowed to take on
additional jobs in order to improve their skills, gain
experience that would not be available in-house, andincrease their workstyle flexibility. This system was
implemented after a company-wide poll to select ideas andproposals submitted by employees as part a campaign for
employee-led company transformation ideas.
(4) Remote relocation system
We introduced this system to enable employees to live inareas remote from the office, normally at least two hours’
distance by conventional train lines, and to attend physically
only when necessary for operational reasons. As of October
1, 2023, 25 young employees, mid-level managers, andsenior executives had used this system to relocate to areas
ranging from Hokkaido to Kyushu.

Diverse approaches to health-focused management

MRI regards health-focused management as a vital priority
for ensuring the sustainable growth of employees and thecompany. Measures are implemented to enhance andmaintain employee health. We have also posted a diagramof our health-focused management structures on our
corporate website and collaborate among organizations
within and outside of the Group.
As part our health-focused management activities, we
are working to maintain a 100% coverage ratio for medical
checkups. We are continually revising the content of thesecheckups to ensure the early detection of diseases, thealleviation of lifestyle conditions, and the implementationof mental health countermeasures.
We use state-of-the-art technology and services to maintainand enhance our employees’ health. Specific examples of theservices available include early detection of cancer, ultra-early
detection of cognitive decline, and physical age estimation
based on height, weight, waist measurement, grip strength,
and the ability to stand on one leg. These services areavailable free of charge to employees who wish to use them.
Since 2021, we have taken part as a company in awalking program run by the Mitsubishi Health InsuranceSociety; this is one means for us to raise health awarenessand foster communication among colleagues. Walking
earns participants points in the program’s custom app.
This naturally builds the habit of walking and encourages
people to change their attitudes to health. The system also
fosters communication among employees as individuals
and units compete to accumulate the most points.
Our health-focused management structure

Industrial health staff

Human Resources Division(health improvement staff)

helping each other to grow. To achieve this, we have madeit a priority to craft working environments that meet the
specific needs of people with disabilities while enabling
individuals to apply their unique qualities to their work.
We are also implementing initiatives in response to growthin the number of mid-career hires, such as assigning
people to units and roles that allow them to makemaximum use of their past experience and knowledge.

Continuous enhancement of human rights initiatives

MRI is a member of the Mitsubishi Group Human Rights
Enlightenment Committee, which consists of representatives
from 22 Mitsubishi Group companies and one committee.
Our staff regularly participate in workshops designed todeepen their awareness and understanding of various humanrights issues. Measures to protect human rights within thecompany include the use of training programs to raiseawareness and the creation of a harassment hotline.

Energizing working environments for diverse people

We want MRI to be a company in which diverse people canwork enthusiastically and fully apply their unique qualities
and strengths to the sustainable creation of value while

At a discussion event for interns from overseas

Health insurance society

Healthcare Division

External medical organizations

Safety and Health Committee

Initiative for Co-creating
the Future (ICF)†

Employees

Labor union* Employee-led groups that aim for the creation of a brighter future through free andopen discussion around select topics† MRI administers this platform for industry, government, academia, and private sector
collaboration to resolve societal issues through innovation and business69 Mitsubishi Research Institute Group Report 2023

Financial and Corporate Data

Representative Director(officer in charge ofhealth improvement)

Intellectual Club*

A communication area

Everyone working for MRI must be empowered to reach
their full potential. This requires not only the achievementof target indicators for women, non-Japanese, andmid-career-hire employees, but also the creation of aworking environment and corporate culture in which people
with diverse ideas and abilities can engage in lively debate.
To energize debate, we must increase the diversity of ouremployees, while also ensuring that all can enjoy their workin the spirit of reciprocal respect and support.
These ideas are embodied in the Conduct Guidelines
for Diversity and Inclusion, which we formulated in
November 2022. The promotion of diversity, equity, andinclusion (DE&I) is identified as a key policy in
Medium-Term Management Plan 2026. All employees
participated in workplace discussions designed to build
basic DE&I knowledge and deepen understanding about
current trends and the meaning of equity. As part of ourtraining activities, we have made the online seminarstreaming service provided by Cradle Inc. available so that
employees can view training programs that interest them.
We are also working to expand initiatives based on theactual experiences of mid-career hires and people who havetaken childcare leave. To achieve this, we are creating
opportunities for employees to share their thoughts about
their careers.

IV Initiatives to Support Value Creation

A real sense that every individual is ready to lead change
I took six months of childcare leave after the birth of my first and again when
my second son was born. Consulting is regarded as an extremely demanding
job. However, it is not uncommon for men to take childcare leave. Five years
ago only around 3% of male MRI staff took childcare leave, but now the ratio
has risen to 54%. This is partly due to the excellent follow-up support provided
by childcare leave specialists in the Human Resources Division, as well as theenhancement of internal systems and manuals. However, I feel that the mostimportant factor is the formation of a corporate culture in which people are
more comfortable about taking childcare leave, which itself is the collective
product of the efforts of individual fathers to lead change. This environment
has helped me to make the most of my time with my children. One day I will
explain to my children about my decision to take leave to be with them.

Satoshi Nakamura
Digital Acceleration Group,
Business Data Analytics Division,
Digital Innovation Unit

At a health-focused management promotion event

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Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Diversity, Equity, and Inclusion

I want to make MRI a hybrid organization in which
our diverse professionals are aware of shifting
societal trends and work together to enhancetheir abilities and results
We have held company-wide discussions about the importance that DE&I
has come to hold. One of the answers to emerge from these discussions wasthat DE&I is essential for self-transformation. Our business environment isevolving rapidly with each passing day in step with the accelerating evolutionof technology. At the same time, we have accumulated vast knowledge
resources and have extensive expertise that we can use to tackle issues. Our
growth is built on these intangible assets. However, it is extremely risky toassume that tomorrow will be an extension of yesterday. If we turn a blindeye to change, we will continue working as we always have. While that could
be effective in the short term, it will hinder innovation and fail to deliver
growth over the long term. I want MRI to be a hybrid organization in whichpeople with diverse skills and experience remain alert to opportunities, canenhance their abilities, and maximize results by working as a team, while
respecting their differences.

Close-upSputniko! and President Yabuta talk about the DE&I in practice

An important step toward achieving that goal is to change
any unfair and inequitable rules, regulations, or practices
that may be hidden within the organization

MRI is using workplace discussion sessions and external online seminars to transform its initiatives under the Conduct
Guidelines for Diversity and Inclusion formulated in 2022. All employees are participating in these company-wide activities.
As part of this process, President Yabuta spoke with Sputniko!, the CEO of Cradle Inc., which hosted the online seminars.
Their dialogue highlighted the importance of equity in diversity, equity, and inclusion (DE&I) initiatives.

Conduct Guidelines
for Diversity, Equity,and Inclusion

We strive to be a company where diverse individuals areactively engaged, grow together, and resolve various societal issues.
acknowledge the differences in the situations and aspirations of all• Wewill create an engaging workplace through respect for individuality and help for one another• We• We will take joy in combining unique strengths to create new value

Kenji Yabuta

Sputniko!

As the world undergoes change on a substantial scale, your organizationneeds diverse people able to sense such shifts. Companies with diverse
antennae are more able to be innovative, resilient, and nimble. Change caneven be exciting for them. To become this kind of company, you need DE&I,
which combines D&I with equity. The minor rules, regulations, and practices
that exist within your organization, such as working hours, meeting times,
and promotion processes, may include provisions that seem normal but canactually result in unfairness toward people of different genders and ethnic
backgrounds, or people with disabilities. To eliminate this kind of structural
discrimination, I believe that it is important to promote diversity and create
an organizational culture in which people feel free to express their views.

Profile of Sputniko!
Artist, Founder and CEO of Cradle Inc.
Formerly an assistant professor at the MIT Media Lab and a project associate professor for a postgraduate
program at The University of Tokyo, Sputniko! is currently an associate professor in the Department of Design
at Tokyo University of the Arts. She has been a TED Fellow since 2019 and was selected as a World Economic
Forum Young Global Leader in 2017. Her other awards include the 11th L’Oréal-UNESCO Award for Women
Scientists in Japan, the Vogue Woman of the Year Award, the G1 New Leaders Award (2023), and inclusion in
the “Japan’s Leading 100 People” list. She founded Cradle Inc. in 2019 and is currently its CEO.

71 Mitsubishi Research Institute Group Report 2023

Mitsubishi Research Institute Group Report 2023

72

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate DataIntellectual and Co-Creation Foundation
Intellectual Capital

Enhancing the quality of research andrecommendations through committee meetingsand discussion sessions

Intellectual Capital
Overview of our Intellectual Capital Strategy

The accumulation and utilization of intellectual capitalform the foundation for our business activities and are thesource of our advantage. Information and content publishedthrough our A) Research & Recommendations are thestarting point for the development of business through ourother processes. We also form and accumulate intellectual
capital through B) Analysis & Conceptualization, C) Design& Testing, and D) Societal Implementation. At the societal
implementation stage in particular, we enhance ourcompetitiveness by building our base of intellectual property,
such as by acquiring patents for our original methods.
We have a company-wide organization, one thatencompasses all processes of our Value Creation Process(VCP), to integrate the knowledge of our diverse andhighly-skilled professionals and further enhance ourintellectual capital. We also disseminate knowledge andknow-how gained from our business operations throughgroup-wide knowledge-sharing activities, such as in-houseseminars and courses.

Chairman of the Institute and research fellows leaddiverse research and recommendation activities

Formation of intellectual capital throughbusiness activities

Hiroshi Komiyama
Chairman of the InstituteIntellectual Capital Strategy

A

Research &Recommendations

C

D

Design &Testing

Societal
Implementation

B

Analysis &Conceptualization

Building intellectual capital
Formation ofsocietal trends
Starting points
for businessdevelopment
Creation & accumulation of original methods and know-how
Creation of
intellectual
property throughpatent acquisition

Supporting intellectual capital
Implementation of projects under company-wide organization
Company-wide & group-wide knowledge-sharing activities

73 Mitsubishi Research Institute Group Report 2023

As part of our human resource development activities, ourcompany-wide Research & Recommendations Committee
contributes to the qualitative enhancement of our researchand recommendations by holding monthly meetings to
discuss progress on individual research and recommendation
implementation plans and activities. Company-wide efforts
to enhance the quality of our research and recommendations
also include regular in-house discussion sessions. Thesesessions, which are attended by senior management andresearch fellows, provide opportunities for comprehensive
deliberations from multiple perspectives.

Chairman of the Institute Hiroshi Komiyama and our
research fellows are all highly qualified and have extensive
experience and networks. Under their leadership,
researchers in our Think Tank Unit carry out activities
based on company-wide participation.
Our research and recommendation activities encompass
three core elements. The first, our foundational research,enhances our knowledge base and includes analysis of theinternational situation, the economy, and advanced
technologies. The second is our future-concept research,which focuses on the creation of societal trends, long-term
concepts for the future of society, and paths to therealization of those concepts. Finally we have
VCP-synchronized research, through which we propose
solutions focused on societal issues in VCP priority
domains. A key feature of our activities is research basedon scientific concepts and the collective knowledge of
researchers in a wide range of fields, including special
research projects on broad themes, such as economic
security, under the leadership of our research fellows.
These activities are the starting point for the societal
implementation of solutions to a wide range issues.

We accumulate original methods and know-how not only
through our A) Research & Recommendations, but also
through our other business activities, including B)
Analysis & Conceptualization, C) Design & Testing, andD) Societal Implementation. In addition to patenting,managing, and utilizing intellectual capital from thesesources, we also use it to create solutions for clients’ issues
and improve our own efficiency. Outlined below are someexamples of these activities.

Examples of intellectual capitalThinking•WeSci-Fi
use this method to visualize disruptive but reality-based
futures without being limited by past trends. We are exploring
practical ways to use this concept as a new approach toideation in an environment affected by growing uncertainty.

Management•TheDesign
aim of this management method is to apply the power ofdesign in various areas, such as brand development, newbusiness creation, and the transformation of organizational
culture. We are working to promote the use of design
management through analyses of the relationship between
design and management.

Cycle®
•TheFLAP
shift of human resources toward creative, non-routine
tasks has become a societal issue. We are advocating apractical way to accelerate this change through a four-stage
process (Find-Learn-Act-Perform) (p. 67).

Tank DX•OurThinkown digital transformation (DX) initiatives include the useof digital tools, such as web-based information gatheringand reporting, data analysis, simulations, and remotemeetings to improve our operating efficiency. Tools createdthrough these efforts are used as the basis for solutions andservices provided to clients.

Acquiring and utilizing patents throughthe societal implementation business

The defining characteristics the MRI Group can be traced
back to its origins as a think tank. We prioritize theapplication of those characteristics to the implementationof solutions that address the root causes of societal issues.
In addition, we will further strengthen our competitivenessby actively turning differentiation factors, such astechnologies and know-how, emerging from our societal
implementation business, into intellectual property.
Our approach to patent acquisition is guided by anunderstanding of our strengths and weaknesses, and weprioritize applications for patents in priority fields inwhich we can further strengthen our business activities.
Our policy is to ensure competitiveness by building
barriers to competitor market entry through the acquisitionof core patents for each business. In FY9/23 we acquired
nine patents.
Region Ring®: example of acquiring patents to support
societal implementation businesses
Our Region Ring® digital regional currency platform wasdeveloped as a societal implementation business targeting
regional issues. We have obtained multiple patents for a
virtual currency system that provides new ways to use
virtual currencies to stimulate regional economic activity.
This in turn enables us to implement a variety of valuation
systems. In preparation for the development of overseas
business in this area, we are acquiring foreign patents forvirtual currency systems in Indonesia, Malaysia, Taiwan,
and other Asian markets.

•

The Region Ring® structure
Affiliatedmerchants

Stores and other merchants(tablets, smartphones)

Platform
Digitalcurrency

e-money

Point
(1)

Point
(2)

Digitaltickets
API

Grantedby issuer

Users

Cash

Premiums

Grantedby issuer

CashHealth points(example)

Volunteer app(example)

Tickets(example)

Acquisition of patents for reduction and elimination of incentives• Region Ring® incorporates functions that allow incentives to be reduced oreliminated during campaigns or events by changing the value of colored coins on
which additional information, such as digital currencies, e-money, points, and digitaltickets, is recorded. MRI has obtained multiple patents relating to these functions• By modifying the value of digital points provided as economic incentives, it ispossible to encourage the use of incentives and stimulate consumption

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Value Creation Model

We are working to transform our think tank services byimproving efficiency through the enhancement of various
processes, including information gathering, data analysis,
simulations, prototyping, project management, and meeting
management. In recent years, we have applied digitaltransformation (DX) techniques to these processes underthe banner of our Think Tank DX initiative, while utilizing
tools, data, and pending patents as intellectual capital.
Dramatic improvements in the performance ofgenerative AI are attracting intense interest. We began to
apply this technology to our Think Tank DX initiatives
even before the emergence of ChatGPT. We will continue
to introduce, develop, and implement these technologies
in-house to drive rapid improvements to the efficiency of
our work. Employees can utilize generative AI either byaccessing ChatGPT or other tools directly, or by combining
generative AI and other systems and databases according
to their purpose. We have introduced ThinkChat for theformer, and RoboRisa for the latter.
ThinkChat: generative AI for our work
ThinkChat is a system that allows ChatGPT-equivalentfunctions to be used in a secure environment. It significantly
contributes to the improvement of reporting functions
through the use of AI to create and review documents. To
use this AI-based system effectively, it is necessary to beaware of areas in which AI excels and those in which it isless effective, to provide appropriate prompts, and to•

A ThinkChat screen

75 Mitsubishi Research Institute Group Report 2023

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Relationship CapitalIntellectual CapitalThink Tank DX: applying technologies such as
generative AI

I Growth Strategy

ensure that human beings assess the results. Users alsoneed to be aware of the various risks and technologicallimitations that affect the use of AI. MRI continuallygathers, organizes, and documents related information andshares guidelines with all employees. We are working toaccumulate intellectual capital relating to generative AI
through our day-to-day business operations.

• RoboRisa: combining generative AI withoriginal databases
RoboRisa is a system that improves the efficiency of
research processes by automatically gathering informationfrom websites and using AI to generate text and images.
We do not use the results produced by generative AI
directly. Instead, we employ misinformation detection AI
to prevent hallucination, an instance when an AI response
returns incorrect information as fact, a weakness ofgenerative AI. Users can query a database of previously
submitted questions, and RoboRisa can also organize
information to create slides. The system is available foraccess by all employees.
Currently, RoboRisa collects information from over
1,000 domestic and overseas websites covering over 30 of
our research themes. Since the websites used are selectedby MRI researchers, the quality of the information
provided is better than results from conventional web
searches. As a system that combines generative AI andhigh-quality databases with misinformation detection AI,
RoboRisa has become an important part of our intellectual
capital accumulation infrastructure.

Overview of relationship capital strategy

MRI has unique advantages as a company dedicated to thesolution of societal issues through the convergence of ourThink Tank & Consulting Services segment with our IT
Services segment. We are continually working to enhancethose advantages by strengthening our relationships, notonly with our customers, but also with all of the various
stakeholders that make up society, through co-creation
with partner companies and communicating our findings.
Strengthening relationship capital
Expansion ofrelationship networks• MRI Group Forum p. 77• Regional Conferences p. 78• Annual Media Conference andMedia Workshops p. 78• Initiative for Co-creating the Future (ICF) p. 77• Business Acceleration Program (BAP) p. 77

Sharing ofresults and issues

Value co-creation

Acceleration of investment andequity participation in partner companies:
M&A and capital and business alliances

M&A and capital and business alliances are at the heart ofMedium-Term Management Plan 2026 and contribute tosustainable growth and the enhancement of the value that
we provide. MP2026 also features a combination of active
investment in the Group’s growth areas with investment inoverseas venture funds and other assets. These measures
are intended to accelerate our business growth andincrease the speed, scale, and scope of our initiatives
toward the solution of societal issues. We have set up theStrategic Planning and Alliance Group within the Group
Corporate Planning Division to explore and executestrategic investments in collaboration with Mitsubishi
Research Institute DCS.

One of our growth areas is digital transformation, or
DX. The three core concepts for our DX services are Smart
Factory Logistics for companies in the manufacturing andlogistics sectors, the DX Journey®, through which we work
alongside clients to realize DX at all stages from strategy
proposal to implementation, and AI & Data Analytics,
which involves the use of data-driven AI to facilitatebusiness innovation. We are working in close collaboration
with our partners to provide services based on theseconcepts. In our subscription-based business, we areworking with our partners and expanding our investment,
especially in areas in which we have already established alead, such as energy, our digital regional currency platform
Region Ring®, and healthcare.

Working with venture capital to strengthen
growth businesses

In January 2023, we invested in FundX, an investment
fund managed by the venture capital company Allegis
Capital. Based in Silicon Valley, Allegis Capital has a trackrecord going back over 20 years to its founding in 1996.
Today it is a leading venture capital company with assets
under management totaling ¥200 billion. It has establishedover 10 funds, with a particular focus on cybersecurity anddata science. Its policy for FundX, which it launched in
January 2023, is to invest in startups building businesses
in primarily the DX, ICT, environment and energy fields.
This policy aligns well with our own business areas. Goingforward, we will use Allegis Capital’s extensive networks
to explore opportunities for collaboration with partners
whose technologies and solutions offer potential forsignificant synergy benefits.
In May 2023, we established a subsidiary in the UnitedStates for the purpose of strengthening communication
with Allegis Capital and other local venture capitalcompanies and expanding our network for the discovery ofstartups with which we can establish new collaborative
relationships. We will work with companies that possess
promising advanced technologies and services with proventrack records in the United States and other countries. We
will also further strengthen and expand these businesses
by linking them to businesses in the MRI Group.

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76

Value Creation Model

Relationship Capital

Initiative for Co-creating the Future: crafting
businesses to resolve societal issues

The Initiative for Co-creating the Future (ICF) is ourplatform for the solution of societal issues throughbusiness using open innovation. Members, numbering
almost 600, span large corporations, medium-sizedcompanies, startups, central and regional governments,
and universities.
The solution of a societal issue begins with a general
analysis of the issue. This is followed by a broad array ofinnovation processes covering deeper exploration of theissue, consideration of specific business models, testing,and societal implementation, in collaboration with adiverse range of partners.
A core mechanism for these activities is the BusinessAcceleration Program (BAP), through which we invite
proposals for societal issue resolution businesses fromamong the ICF-member startups, award excellent ideas,
and accelerate the commercialization of those ideas. The
ninth BAP in FY9/23 attracted over 200 proposals fromJapan and overseas. Our researchers and consultants workwith outside experts, ICF members, and other participants
to further develop proposals with promising social impact.
This emphasis on the creation of collective impacts
through co-creation is the most important feature of the
BAP. The results of these efforts are showcased at the MRI
Demo Day event.
We will continue our efforts to bring solutions to thereal world through ICF activities, by providing an ecosystem
in which startups and wide range of stakeholders can engage
in co-creation toward the solution of societal issues.

I Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Relationship Capital

Deepening relationships with clients throughthe MRI Group Forum

We have held the MRI Group Forum every year since 2005
as an opportunity to build relationships with the
management teams of our clients and partner companies.
Like the 2022 event, the 18th MRI Group Forum in
November 2023 was a Group-wide initiative. Discourse
explored a new vision for the future of society, in particular
how to achieve a digital society. In addition to thepresentation of findings by MRI researchers, there werealso panel discussions involving experts from industry, thegovernment, and academia.
The 2023 rendition returned to the pre-pandemic
format while also offering live streaming to reach a wider
audience. The hybrid format posted high marks with 184
participants at the venue and over 600 online.

Strengthening ties with local business leaders
through Regional Conferences

We have held Regional Conferences in the Kansai (Osaka),
Chubu (Nagoya), and Kyushu (Fukuoka) regions since
FY9/18 as a way of expanding our relationships with local
business owners, universities, branches of central
government agencies, and local governments. Each eventin the FY9/23 series comprised formal activities, including
keynote addresses and themed lectures, and informal
activities, such as networking areas based on theme. During
the themed lectures, speakers presented research results
relating to three or four topics selected from issues ofparticular interest in local audiences, such as carbon
neutrality, the circular economy, ChatGPT, human capitalmanagement, resilience, digital regional currencies, andexpos. The theme-based networking areas made it possible
for participants to discuss in detail topics of interest. For
MRI, this meant a deeper awareness of issues that need to beresolved, ideas for their solution, closer communication withlocal leaders, and opportunities for new business co-creation.
Positive feedback from participants focused on thecontent of the keynote addresses, the curation of themes forthe lectures, and the content of the presentations. We willcontinue to use these events to share about the solution ofsocietal issues with the world, through initiatives thatreflect changing regional, national, and internationalsituations. We will also use them to create opportunities forco-creation and closer relationships with local communities.

Media engagement: Media Conference andMedia Workshops

We hold various events throughout the year to build close
relationships with the media. We aim to foster a wider
understanding of our aspirations for the future and our
initiatives toward the realization of that vision. This is for
greater resonance and expectations for our activities fromsociety. We link that sense of resonance and expectation toco-creation activities by actively working with the media tocommunicate to the public.
Annual Media Conference
The main theme for our Media Conference in FY9/23 was
The Current State of the World and Japan—Toward Recovery and
Growth. We presented and explained recommendations forthe solution of societal issues spanning seven themes
within and beyond Japan. A total of 64 editorial board
members, journalists, and executives from 30 companies
attended the event and engaged in lively discussions with
MRI researchers and executives. As in previous years, there
was positive feedback from participants about the meeting
format, including the ability to select themes of interestand take part in small-group discussions.
Media Workshops (1–3 times a month)Every month, we hold Media Workshops on topicalthemes. Each event consists of a one-hour presentation by
an MRI researcher, followed by a discussion session. The
purpose of Media Workshops is to help participants tounderstand our views on issues and our recommendations.
The discussion sessions always generate intense interest,with participants offering new viewpoints and raising
issues. These discussions are valuable opportunities toform a circular process through which ideas gained fromthe discussions are applied to our research, enabling us tooffer new recommendations.

••

At the 2023 MRI Group Forum
Presentations during MRI Demo Day 2023

President Yabuta speaks at the 2023 Media Conference

At a regional conference

77 Mitsubishi Research Institute Group Report 2023

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78

ⅠV

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Initiatives that Contribute to Value Creation

Our activities are guided by continuousreflection on our social responsibility
as a future-solution Group.
Continual investment in capital to support growth

Financial value

Environmental

p. 81

Information Security

p. 85

A

Financial
capitalResearch &Recommendations

Non-financial
capitalHuman
Foundation

Material issue

Employees

B

Analysis &Conceptualization

Shareholders,investors

Intellectual and
Co-Creation
Foundation
Think Tank Function

Societal and Public Innovation
Business

Vision for 2070

Public sector
entities

A corporate Group leading
societal change for the future

HumanFoundation
Human capital

Value forour clients
Privatecompanies

Digital Innovation BusinessIntellectual and
Co-Creation
Foundation
Intellectual capital
RelationshipcapitalSocial Trust Financial System Innovation
Foundation Business

D

C

Societal
Implementation

Design &Testing

International
and local
communities

Students,
mid-career hires

Social Trust
Foundation

Governancep. 87

Message froman Outside Directorp. 95

Message fromthe Chairman of the Board

p. 96

Expansion of our recruitment and co-creation network
through the enhancement of our reputation and brand value

79 Mitsubishi Research Institute Group Report 2023

Using our business torealize a better future

Social value

Building a prosperous andsustainable society in an era
when world population willreach 10 billion and 100-year lifespans will be commonplace

Material issue

Our sustainablegrowthBusiness partners

Non-financial value

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80

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Social Trust Foundation
Environmental

Assessment of the financial impact of climate change on the Group

Environmental
Contributing to society and the environment
by reducing environmental burdens andsharing knowledge

In accordance with our Guiding Principles, which define
our mission as the co-creation of a sustainable, abundant
future, we have identified ensuring global sustainability as
one of the Group’s material issues and are pursuingsustainability management.
Our activities are guided by our Environmental Policy.
In addition to environmental management goals, including
decarbonization, we are also working to strengthen oursocial trust foundation as a Group dedicated to solutions
for a brighter future. Specifically, we are reducing burdens
on the global environment through our business activities
and fulfilling our Environmental Policy. The goal is to be aleading company in contributing to the sustainableadvancement of society and the creation of a society andeconomy that are in harmony with the environment.
Risks

Fundamental Principles
The Mitsubishi Research Institute Group aims, through its businessactivities, both to reduce burdens on the global environment and tocontribute to the realization of a sustainable society. The MRI Groupaspires to be a leader in creating an economy that is in harmony withthe environment.

Environmental policy 1.

Advancing Sustainable
Environmental Management

Environmental policy 2.

Undertaking a Variety ofEnvironmental Businesses

Environmental policy 3.

Governance•Actionon climate change is an important focus for theGroup. In addition to the reduction of our own carbon
footprint, we can also use our knowledge to contribute to
the improvement of social value. The president of MRI is
also our chief sustainability officer (CSO), while thegeneral manager of the Corporate Administration Unit
coordinates activities as the sustainability management
officer. Policies and measures relating to environmental
value are managed by the Sustainable Management Office.
Matters requiring deliberations and decisions are raised by
the general manager of the Corporate Planning Division.
Decisions are made by the Executive Committee, subject
to approval by the sustainability management officer, theCSO, and the Management Strategy Committee.
The Board of Directors is responsible for oversight ofbasic sustainability policies, including periodic reviews ofprogress on plans. In FY9/23, the Board reviewed theSustainability Management Policy and materiality targets,
including greenhouse gas (GHG) emissions, the renewableenergy ratio, and other environmental targets under

Assessment of the nature of risks & opportunities and the financial impact

Economic slowdown due
to the introduction of acarbon tax

Medium tolong term‡

Small• We considered the risk that business orders received by the Group would stagnate if the introduction of a carbon tax caused
a macroeconomic slowdown due to the increased cost burden for businesses• Referring to the relationship between the introduction of consumption tax and the GDP growth rate, we calculated the riskof a downturn in sales by applying a certain ratio to our forecasted sales for 2030 and evaluated the impact on operating
profit and loss

Introduction ofcarbon tax‡

Medium tolong term

Small• We considered the risk that the Group would face cost increases following the introduction of a carbon tax• We evaluated the impact on operating profit and loss by applying a carbon tax to our residual GHG emissions (scope 1 and 2)
forecasted for 2030. The carbon tax level is assumed to be 135 USD/tCO2

Rising electric
power prices

Medium tolong term

Small• We considered the risk that electricity prices will rise due to increased demand for renewable energy-derived power and theintroduction of a carbon tax. Particular attention was paid to the potential impact on our data centers, which account forthe bulk of electric power consumption by the Group• We calculated electricity usage charges in 2030, based on the rate of increase in industrial electricity unit prices, andevaluated the impact on operating profit and loss

Demand for consultationand system services could
increase due to growinginterest in mitigation

Short term

Small tomedium• We considered the potential increase of sustainability-related business opportunities for many industries amid accelerationof decarbonization efforts across society• We set growth case and standard case rates for sales growth in mitigation-related projects, forecasted sales in 2030, andevaluated the impact on operating profit and loss

Economic stagnation due
to intensifying wind andflood damage

Short term

Small

• We considered the risk that the Group would receive fewer business orders if severe disasters, such as major typhoons, wereto cause an economic downturn affecting all of society• Referring to the relationship between past and ongoing economic crises (e.g., the 2007–2008 financial crisis and the covid
pandemic) and the GDP growth rate, we calculated the risk of a downturn in sales by applying a certain ratio to our sales
forecasted for 2030, and evaluated the impact on operating profit and loss

Increase in insurance
premiums due tointensifying wind andflood damage

Short term

Small

• We considered the risk that insurance premiums for the Group’s main business sites and data centers would increase in thecase of an increased risk of storm damage due to major typhoons• Based on past revisions to insurance premium rates, we evaluated the impact on operating profit and loss by applying acertain ratio to the insurance premium payment amount for our data center in Inzai City. In view of the location andstrength of the building, we did not consider the risk of building damage

Small• We considered the potential increases in business opportunities for the Group in the area of adaptation-related projects
amid the growing severity and frequency of natural disasters. Such projects might include disaster preparedness initiatives,
infrastructure strengthening, and risk management• We set growth case and standard case rates for sales growth in adaptation-related projects, forecasted sales in 2030, andevaluated the impact on operating profit and loss

1.5°C
scenario

Opportunities

Contributing to Environment &Society by Providing Knowledge
Enacted: July 10, 2002
Revised 8th edition: December 17, 2021

Environmental management systems

1. Advancing Sustainable Environmental Management
Actions based on TCFD recommendations

Timeline for Financial
emergence* impact†

Scenario Major risks and opportunities

Medium-Term Management Plan 2026 (MP2026), as wellas progress on initiatives in FY9/23.

•WeStrategy
identify climate change risks and opportunities and use
scenario analyses to assess their impact on the Group. We
carried out specific analyses about impacts in 2030 basedon a 1.5°C scenario and a 4°C scenario. The former
assumes that stringent measures will be implemented,
including carbon taxes and environmental regulations, andthat society as a whole will work actively to counterclimate change. The latter assumes that no stringent
measures are introduced and that both the severity andfrequency of natural disasters will increase. For the
purpose of these analyses, we divided our business areas
into those affected by climate change and other strategicareas. We then calculated the financial impact based on thescale of each business area in 2030. Based on the results ofthese analyses, we believe that the negative impact ofclimate change on the Group will be small, and that we arehighly resilient to climate change.

Risks
4°C
scenario

Opportunities

Demand for consultationand system services could
increase due to growinginterest in adaptation

Short term

* Timelines are defined as follows.
Short-term: up to FY9/26 (the period for environmental targets and business plans under MP2026)
Medium-term: up to FY9/30 (the milestone year for environment targets for the achievement of carbon neutrality by 2050 under the Sixth Strategic Energy Plan)
Long-term: up to FY9/50 (the target year for the achievement of carbon neutrality)† Operating profit in 2030 is taken as 100, and the ratio of financial impact of each item is classified as small from 0% to less than 3%, medium from 3% to less than 10%, and large at
10% or greater (absolute values)‡ Our assessment of the impact of carbon pricing in relation to the main risks and opportunities for the Group is limited to the direct effect of the introduction of a carbon tax on profit and loss

management•WeRisk
have developed our own Advanced Risk Management

System (ARMS, p. 93). This comprehensive system detects
early indications of risk factors and triggers risk management
procedures in the event of emergencies. The Risk
Management Division submits monthly reports to the
Executive Committee concerning company-wide risk
indications monitored by ARMS. In addition, the Internal
Control & Risk Management Committee, which is chairedby the president, meets four times each year and submits
a summary, yearly policy, and plan to the Executive
Committee at least once a year. A report is then submitted
to the Board of Directors. The results of analyses of climatechange-related risks and businesses identified through thedisclosure process under the TCFD framework and theirfinancial impact are reported to the Executive Committee
and Board of Directors as risk factors that could affect thebusiness of the Group.

and targets•WeIndicators
have set targets for greenhouse gas emissions and therenewable energy ratio as the basis for our steady efforts
toward the achievement of carbon neutrality by 2050.
Part of the compensation paid to directors has been
linked to targets as indicators of our commitment tosustainability management.
GHG emissions (scope 1 and 2) and renewable energy ratio
progress & targets
GHG emissions (tCO2e)
GHG emissions targets (tCO2e)
Renewable energy ratio results & targets (%)

9,686(Third-party guarantee obtained)

11,511 11,049*
10,611**100

7,686*(Third-party guarantee obtained)

7,200
30.7

35

65
4,800

7.3
0
0
FY9/19 FY9/20 FY9/21 FY9/22 FY9/23 FY9/24 FY9/30 FY9/50* The results for FY9/19–FY9/21 have been adjusted to reflect boundary changes in FY9/22

81 Mitsubishi Research Institute Group Report 2023

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82

Value Creation Model

Environmental

Participation in TNFD ForumIn March 2023, MRI joined the TNFD forum, which
consists of organizations with specialized knowledge,
including businesses, government agencies, and academic
institutions, that have declared their support for theTaskforce on Nature-related Financial Disclosures (TNFD).
Members work to maintain the diversity of natural capitalby publishing clear and accurate information. They aim toincrease their contributions to the realization of asustainable society through the development of aframework for the disclosure of financial information.

We are continuously working to reduce the environmental
impacts of our business activities. For example, we
regularly monitor electricity consumption, paper use, andwaste output in relation to the business characteristics ofthe Group. If we detect an upward trend in environmental
impacts, we consider countermeasures.
Our electricity consumption, paper use, and waste
output have been falling year on year for several years,
thanks to better efficiency, higher productivity, andreformed workstyles. We will continue to strengthen ourcountermeasures going forward.
Paper usage

Electricity usage
73.1
2.92

Per square meter (kWh/m2)

71.4
2.88

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Environmental

Continuous reduction of environmental burdens
using environmental management systems

Total (GWh)

I Growth Strategy

72.5
2.92

Waste output

Total (million sheets)

Per person (sheets/person)

Total (t)Per person (kg/person)

44.78†
67.6
2.63

61.0

4,416

34.49

3,713*
3,248*

2.34

2,882*

15.84

2,650*

123.97

45.14

33.36

FY9/19 FY9/20 FY9/21 FY9/22 FY9/23

6.02

103.6792.55

95.19‡

75.43

5.89

FY9/19 FY9/20 FY9/21 FY9/22 FY9/23* Variation due to changes in the number ofpeople physically working at our offices

FY9/19 FY9/20 FY9/21 FY9/22 FY9/23† Impact of covid pandemic (reduced physicalattendance, desktop disinfection, etc.)‡ Temporary year on year increase resulting fromoffice integration of MRI, MRA, and MBS

2. Undertaking a Variety of Environmental Businesses
Business for the environment

The Group aims to create social value through projects
that help reduce environmental burdens. The Think Tank
& Consulting Services segment receives orders for surveys,
research, and consulting work, and through these projects,
we help clients to develop and administer policies, toformulate management strategies, and to develop businessactivities that help reduce environmental impacts. The IT
Services segment provides total IT solutions that help
clients to reduce their environmental impacts.
Projects of particular impact include support for
reducing emissions via renewable energy, developing
policies to enhance resource recycling, and strategy
support for sustainability management. Our own
initiatives include publishing research andrecommendations and the development of mega-solar
farms as part of decarbonization efforts.

83 Mitsubishi Research Institute Group Report 2023

Sharing insights on how to resolve
environmental and energy issues

Since publishing our Recommendations for Achieving Carbon
Neutrality by 2050 in September 2021, our activities,
including in-house research, have yielded an extensive
array of environmental and energy-related knowledge andinformation, which we have made widely available to the
public. Future progress toward decarbonization has
become unpredictable at present for a variety of reasons,
including divisions in the international community, anddisruptions affecting energy markets. Despite this, MRI
continues to provide recommendations for a smoothtransition to a decarbonized society without the sacrificeof economic security and economic growth.

Main publications in FY9/23
OutlineSeptember 2021

Recommendations for Achieving Carbon Neutrality
by 2050

October 2022

Recommendations on Long-term Use of Nuclear
Energy in a Carbon-Neutral Japan

February 2023

Rebuilding the Economy on Carbon-Neutral
Resources

May 2023

Report on Transition to Carbon Neutrality

July 2023

Building Japan’s Circular Economy through Harmony
with Technology

September 2023

Integrated Promotion of Energy and Resource
Circulation Policies

27.28

10.12
6.64

3. Contributing to Environment & Society by Providing Knowledge

Key environmental projects

Recommendations

Integrated Promotion of Energy and Resource Circulation Policies

Rebuilding the Economy on Carbon-Neutral Resources
In the short-term perspective, economic security will
inevitably continue to be a key focus because of Russia’s
invasion of Ukraine. This situation has created a need forpolicies that will enable us to achieve both carbon
neutrality and economic security through resource
circulation. On September 21, 2023, MRI completed
policy recommendations on the Integrated Promotion ofEnergy and Resource Circulation Policies.
These recommendations focus on the circulation of
three types of resources: renewable energy resources;

metal resources used in storage batteries; and scrap ironand waste plastic. As a resource-poor country, Japan needs
to import these and actively circulate them domestically,
while also enhancing essential technologies. Thisapproach will stimulate investment in growth areas,such as renewable energy power generation and storage
batteries. It will also bring progress toward carbon
neutrality in raw material industries, while enabling Japanas a whole to achieve both decarbonization and economic
security. We believe that the best approach for Japan isto rebuild its economy on carbon-neutral resources.

Overview
Global WarmingCountermeasures• Contract to carry out a study concerning the expanded introduction

Resources &Recycling(waste processing)• Facilitation of enhanced utilization of recycled resources through

New Energy &Renewable Energy• Development of international standards for energy conservation,of renewable energy to achieve a medium- to long-term reductionof greenhouse gas emissions in response to the Paris Agreement,
etc. (Ministry of the Environment)• Contract to develop infrastructure for the calculation, reporting, anddisclosure of greenhouse gas emissions (Ministry of the Environment)closer integration of recycling systems (Ministry of the Environment)• Facilitation of recycling used, small electronic devices (Ministry of
the Environment)
etc. (Ministry of Economy, Trade and Industry)• Services leading to the efficient and reliable operation of fixedprice purchasing systems (Agency for Natural Resources andEnergy, Ministry of Economy, Trade and Industry)

Assistance inAchieving SDGs

• Surveys and monitoring of ESG- and SDG-related trends,

development of action policies (trading companies, food,agriculture, service sector, etc.)• Support for the development of long-term environmental visions(automotive, electrical machinery, and construction industries, etc.)• Support for planning and the acquisition of science-based target
certification (automobiles, electrical machinery)

Recommendations for rebuilding the Japanese economy
on carbon-neutral resources
Our policy recommendations call for the integrated promotion of energy andresource circulation policies toward the rebuilding of the Japanese economy
on carbon-neutral resources. The key points are (1) integrated implementationof energy and resource circulation policies, (2) acceleration of businessinitiatives based on accurate indicators, and (3) the creation of digital productpassports (DPPs). All three measures are important, but the third—thecreation of DDPs—has the potential to provide impetus for supply chain
initiatives. We will continue to work with various related entities toimplement these recommendations.

Yushi Inoue
Deputy General Manager,
Energy and Sustainability Division,
Societal Innovation Unit

Mitsubishi Research Institute Group Report 2023

84

Value Creation Model

Information Security
Overview

Clients bring ever increasingly complex information
management needs: While they must make use of IT—likeremote work and paperless methods—to boost efficiency
in their emerging new-normal workstyles, they facegrowing threats from malware that can trigger serious
information leakage.
As a company that assists clients all the way through theimplementation of their digital transformation, we bear the
responsibility of utmost security when it comes toinformation. To fulfill this responsibility, we place theutmost priority on information security as a management
item, focusing on the implementation of appropriate
measures and achieving continuous improvement.
We also aim to enhance information security acrosssociety by putting our expertise to use in our client-based
work, including projects related to advanced security
technology and management systems.

Ongoing initiatives under our
Basic Information Security Policy

We have established an information security management
structure under our Basic Information Security Policy, andwe are working to strengthen our IT governance systems,
including systems to ensure regulatory compliance inrelation to information assets. We are also implementing
the following activities on a continuing basis.
• Implementing information security measures in responseto the latest threats, vulnerabilities, businessenvironment trends, and business models• Providing information security education (e.g., casestudies of recent threats, items requiring caution, andemergency responses)• Regularly monitoring and improving information
security management and administration
In FY9/23, we responded to the post-pandemic resurgenceof business activities by taking the following steps toenhance the security measures, including theireffectiveness in relation to economic security, in
anticipation of cyberattacks.

Features of
IT-BCP• Reduction of the percentage
of successful attacks• Real-time detection• Improvement of detection rate

Important

Detection of an attack• Information technology business continuity plan (IT-BCP)

drills and business impact analyses (BIA)
We conducted IT-BCP drills under two scenarios withdifferent target groups. These drills went beyond ourexisting perimeter defense concepts and were based on theassumption that there had been intrusions into our internal
networks. The drill for management team members
included the visualization of decision-making processes,
while that for frontline staff covered such aspects asconfirmation of information-sharing methods after a
network breakdown. In addition, we strengthened our BCP
by conducting a BIA and reviewing management structures
for key information assets through operational audits.
Targeted email attack drills
Emotet and other malware infections spread through illicit
emails sent by malicious attackers are becoming increasingly
prevalent in Japan. We are working to prevent the harmcaused by this problem by continually training employees inmethods for countering targeted email attacks. There are two
types of drills: one designed to enhance the ability to prevent
attacks, and the other to raise awareness of threats. We
provide supplementary training to improve awareness among
newly appointed personnel, who are particularly vulnerable.
To achieve synergistic benefits, these training programs arealigned with the content of e-learning programs.

•• Formulation of Group information security implementation

plan using third party audits
We use external security audits conducted by independent
organizations to provide objective and sophisticatedassurance of the effectiveness of our information security. In
FY9/23, we used the audit report to identify measures withthe potential to deliver significant benefits. We thenformulated an implementation plan designed to improve theinformation security level across the entire MRI Group. In
addition, we set goals based on the CIS Controls, which are
the global standard for information security.
Guidelines for the use of generative AI
In order to prevent information leaks, we have created a closed
generative AI environment with relatively few restrictions on
information inputs. We also formulated internal guidelines forthe use of generative AI and are collecting ideas from within
the company on how to use AI in business.

•• Management based on recovery time objective (RTO)• Policies & decision-making from a management perspective• Identification oforganizational & process issues• Latent presence of undetected attacks

85 Mitsubishi Research Institute Group Report 2023

Restoration of service

Analysis of cause & impact level
Preliminary response

Undetected

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Information Security

BCP activation (policy decision)
Preventive measures

I Growth Strategy

Permanent response
Process improvement plan

Close-up Roll-out of services based on information security technology
Providing total solutions for the realization of zero trust security
As opportunities to use cloud services in business operations
increase, the boundaries between internal and external
information security in relation to assets that need to beprotected are becoming blurred. This environment requires azero trust approach to security, in which no persons, devices,or connection locations with access to information assets aretrusted, and steps are taken to check their trustworthiness.

Mitsubishi Research Institute DCS has a track recordand extensive experience of introducing and administeringvarious multivendor solutions for clients in various
industries, including systems that meet the high-security
needs of the financial sector. It helps its clients toimplement zero trust security by providing high-quality
total solutions, ranging from consultation to administration.

Features of zero trust solutions provided by Mitsubishi Research Institute DCS
Creating secure IT environments

We support the realization of new secure IT environments through a transition from infrastructure-centered IT structures
based on the perimeter defense model to IT structures centered on the services used.

One-stop

We offer one-stop solutions encompassing all stages from initial studies through to implementation and administrative support.

Vendor-free

Our flexible vendor-free solutions do not lock clients into the use of specific technologies or vendors.
Perimeter defense
Open
web

IaaS
SaaS

Shadow
IT

Internet

Zero trust
Open
web

Data center

F/W

Shadow
IT

IaaS
SaaS

Head office &branches

Data center
Head office &branches

Internet

Authentication,authorization

Homes

Homes

• Creation of a defensive barrier between the internal network and• No communication trusted, authentication and authorization• Vulnerable to sophisticated attacks and the spread of infections• Resilient against the spread of infection and IT environment

Usable only within the scope of IT utilization

Business revitalization through the use of IT

the Internet, allowing trust within the barrier

used in all cases

after intrusions occur

changes after incursions

Security diagnostic services
Through its security diagnostic service, DCS ascertains thestatus of clients’ systems and the nature of any vulnerabilities
that are present and suggests countermeasures to address
those vulnerabilities. Clients can select from the four typesof diagnostic services listed on the right, according to thescope and level of services required.

Service examples:
penetration testingSpecialist staff from DCS formulate
test scenarios based on potential
threats and attempt to penetrate
the client’s system throughsimulated attacks using multiple
methods. The client receives areport based on detailed analysis
and assessment of problems
detected and the impact of risks.

Platform diagnostic
services

For clients seeking expert diagnoses of vulnerabilities in theirplatforms, such as servers and network equipment

Securify* web application
diagnosis

For clients who require regular diagnoses of vulnerabilities in their
web applications, where simplicity and cost are priorities* Securify is a registered trademark of 3-shake Inc.

Web application
diagnostic services

For clients who require expert diagnoses of vulnerabilities in their
web applications on a more sophisticated and detailed level

Penetration testing

For clients requiring expert diagnoses focusing on whether or notoutsiders could penetrate their systems

Client’s public segment
Web server

DNS server

SMTP server

Client site internal segment
Web server
DB server

Simulated cyberattacks are carriedout based on the test scenario
Client PC
Internet
Our test environment

Firewall

Mitsubishi Research Institute Group Report 2023

86

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

Governance

Governance

We are continually enhancing our governance structures byconducting assessments of the effectiveness of the Board of Directors toascertain the current situation and identify issues

The board also acknowledged the importance of creating
opportunities for systematic deliberations about priority
monitoring items, such as progress on business strategies
under Medium-Term Management Plan 2026 and significant
risks, as part of efforts to improve the effectiveness of theboard’s monitoring functions.
We will continue to target further improvement in theeffectiveness of the Board of Directors based on the resultsof these analyses and assessments.

Corporate governance structurebusiness in line with the basic management policy
established by the board of directors. Executive officers thenimplement decisions. Crucial matters are subject todeliberation by internal committees before being presented
to the Executive Committee.
The Group shares a code of conduct, the Corporate
Governance Guidelines, and the System to Ensure
Appropriate Operations (Internal Control System). These
underpin our common values and ethics.

Our basic corporate governance policy is to ensure proper
execution of business activities, based on our management
philosophy of sustainably improving corporate value—theaggregate of social, customer, shareholder, and employee value.
A majority of our directors and Audit & Supervisory
Board members are from outside the Group. This ensures an
outside perspective in our decisions. The Executive
Committee settles matters concerning the execution of
Corporate governance structure

Governance Advisory Committee activities

The Governance Advisory Committee was established as
an advisory body for the Board of Directors, which seeks
its input on the appointment, dismissal, and compensationof officers, such as the chief executive officer (CEO), andthe analysis and assessment of the effectiveness of theGeneral Meeting of Shareholders
Election/Dismissal
Determination of Compensation (limit)
Audit and ReportElection/Dismissal
Audit Report

Accounting Auditors

Board of Directors
Selection andSupervision

Accounting
Audit

Person or Organization

Discussion of importantmatters, reports on
execution of activities

Internal Control &Risk Management
Committee

Research &Recommendations
Committee

President

Financial and Corporate Data

Board of Directors. The committee deliberates onquestions put to it by the Board of Directors and reports
its findings to the Board.
Members of the Governance Advisory Committee( outside directors)•

Mariko Bando

Takashi Morisaki(Chairperson,
Chairman of the Board)

Ken Kobayashi

Kenji Yabuta

Nobuyuki Hirano

Yasuteru Hirai*

Seiji Izumisawa

Yoshihiko Ito†

Satoko Shisai

Note: Hidemoto Mizuhara* and Jun Nobe† were appointed for the period up to theGeneral Meeting of Shareholders held on December 19, 2023

Date

Activity

Theme

November 2022

1st meeting of the Governance Advisory Committee for FY9/23

Analysis and evaluation of the effectiveness of
the Board of Directors

November 2022

2nd meeting of the Governance Advisory Committee for FY9/23

Officer compensation in FY9/22 and FY9/23

February 2023

3rd meeting of the Governance Advisory Committee for FY9/23

Governance structure of the Board of Directors

July 2023

4th meeting of the Governance Advisory Committee for FY9/23

Revision of the executive officer and research fellow
systems, succession plans for the management teamAugust 2023

5th meeting of the Governance Advisory Committee for FY9/23

Extension of BIP trust agreement and amendment of
the compensation system for officers

Audit

Internal Audit OfficeInternal Audit

Executive Committee
Think Tank Unit
Business
Appraisal
Committee

VCP
Committee

Management
Strategy
Committee

CoordinatedManagement
Committee

Signed memorandum of agreement
providing for prior consultation on
important management matters

Compliance
OfficerComplianceManagers

Cooperation

IV Initiatives to Support Value Creation

Governance Advisory Committee activities

Audit & Supervisory Board

ReportGovernance Advisory Committee

Audit Report

Cooperation

Risk management throughrisk identification, measurement,
control, and monitoring

Consultation

Election/Dismissal
Determination of Compensation (limit)

III The Source of Our Advantage* Assigned to each division

Mitsubishi ResearchInstitute DCS
Other Key
Subsidiaries

Analysis and evaluation of the effectiveness of
the Board of Directors

The Governance Advisory Committee reviews the Board of
Directors to improve effectiveness; the Board of Directors
then analyzes and evaluates its effectiveness and implements
operational improvements.
In FY9/23, we conducted a survey of all directors andAudit & Supervisory Board members concerning thecomposition, management, and strategies of the Board of
Directors, and the oversight of nomination andcompensation processes. To ensure objectivity, we used an
independent organization to design the survey and carryout the analysis and assessment. The survey resulted in

87 Mitsubishi Research Institute Group Report 2023

Public Innovation Unit
Societal Innovation Unit
Digital Innovation Unit
Business Platform Unit
Corporate Administration Unit

excellent appraisals, indicating that the board was performing
its functions properly and effectively, was involved inmatters relating to strategies and sustainability, and wasproviding a free and open forum for constructive debate
and exchanges of views.
There were opportunities for reporting and deliberations
about the management of important risks and other mattersidentified as significant issues in FY9/22. The board was also
involved in succession planning, including activities throughthe Governance Advisory Committee. There was evidence ofsignificant improvements in relation to these matters, as wellas constructive comments about expectations toward future
initiatives relating to administration.

Internal committees

Internal committees are consulted before any proposal on
important matters is put before the Executive Committee.
VCP Committee
The VCP Committee promotes VCP Management via
PDCA cycles. It discusses and formulates overall strategies,
develops plans for specific domains, including theestablishment, modification, or abolition of domains, andevaluates progress. In addition, the committee coordinatescompany-wide efforts to facilitate VCP Management,
including the selection of managers to lead activities andthe assignment of researchers to related fields. It is also
responsible for collaboration with relevant partners,
effectively combining internal and external resources forvalue creation, essential for our VCP.

Business Appraisal Committee
Our business is based primarily on individual projects.
Some, especially large-scale ones, involve a variety of risks.
Also, the shift to VCP Management has increased thenumber of projects requiring the establishment of new
businesses or operational and capital partnerships. The
Business Appraisal Committee mitigates risks relating tothese activities through entry management processes:
deliberations on the appropriateness of projects, including
client issues, profitability, business growth potential,
contribution to further VCP Management progress, andrisks. The Executive Committee makes the final decision on
projects that pass this screening process.
In FY9/23, we screened nine new projects, most being
large-scale, and six new business initiatives, including
business and capital partnerships.

Mitsubishi Research Institute Group Report 2023

88

Value Creation Model

Governance

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

GovernanceInternal Control & Risk Management Committee
This committee rigorously debates matters relating tointernal control systems and risk management, including
the current status of systems and changes to important
rules in each quarter. Specialized and broader perspectives
are applied with legal advisors and Audit & Supervisory
Board members in attendance. It also directly conveys
messages from top management to units and subsidiaries.

A breakdown of the compensation structure isprovided below.
Overview
Internal
officers

Basic compensation consists of base pay, variable
monetary compensation, and variable stock compensation. Variable stock compensation is provided with theaim of motivating officers and providing increased
incentives to contribute to the improvement of
medium- to long-term performance and the expansionof corporate value by linking their compensation to thefinancial performance of the Group and non-financial
value indicators.

Officer compensation
Officer compensation is determined according to a basic
policy. Specifically, after deliberations by the Governance
Advisory Committee, decisions about compensation for
directors are made by the Board of Directors. Decisions oncompensation for Audit & Supervisory Board members are
made by the Audit & Supervisory Board.

Outsideofficers

Because these positions are independent of businessexecution, their compensation consists only of base pay.

Audit &
Supervisory
Board members

To ensure independence, compensation for Audit &Supervisory Board members consists only of base pay.

Basic Policy Regarding Officer Compensation

Skill matrix of directors and corporate auditors
We have identified the following key areas of specialist
skills and knowledge as essential for the supervision
Reason for selection

Businessmanagement

Business management experience and skills, including knowledge based on wide-ranging business experience and relevant experience in
the implementation of strategies are deemed essential for directors and Audit & Supervisory Board members as they work to address various
societal issues

Legal affairs,risk management

As a listed company, we need to develop and administer compliance structures and maintain appropriate risk management systems sothat we can respond precisely to the problems that we encounter as we work to address issues that have never previously been resolved

Financial accounting

The Board of Directors and the Audit & Supervisory Board have a responsibility to contribute to the continuing improvement of ourcorporate value. Accurate financial reporting is essential

Society and policy

Diverse knowledge, logical thinking, and a vision for society are all essential to our continuing efforts to enhance the value that we provide
within the company and to our clients by addressing societal issues in an increasingly complex and difficult environment. We regard
experience and skills honed through approaching and challenging societal issues on the basis of wide-ranging experience andspecialized knowledge as vital for this process

Digital technology

We believe that the solution of societal issues in today’s environment requires advanced technologies, including digital technology, and thatthe use of such technologies is dependent on not only up-to-date knowledge, but also experience and specialist skills in the field ofdigital technology.

Human resources

People are key assets for MRI. To create solutions for societal issues, we need to maximize the effectiveness of our human resources bycontinually enhancing their knowledge in a broad spectrum of fields. We believe that our directors and Audit & Supervisory Board
members need to have diverse experience and specialist knowledge relating to human resource development and education

Skills of MRI directors and Audit & Supervisory Board members(2) To ensure accountability to our stakeholders, we will decide officer compensation through anappropriate process that guarantees transparency, fairness, and reasonableness.

Principal specialist areas/knowledge(3) To secure talented individuals essential for our continued growth, we will aim to set officer
compensation at levels that are attractive over the long term.

Total amount of officer compensation, etc. for FY9/23
Number of personnel

Total amount ofcompensation, etc.
(¥ mn)

Total amounts of each type of compensation, etc. (¥ mn)
Monetary compensationand support of our business behavior and the realizationof Medium-Term Management Plan 2026 which is basedon our Guiding Principles, mission, vision, and values.

Skill items(1) To put into practice a management policy that responds to the mandate of the shareholders, we will
have a fair compensation system that motivates officers to execute their duties.

Classification

I Growth Strategy

Basic compensation

Variable compensation

Stock-based
compensation

Directors(Outside directors)

9
(5)

179
(31)

135
(31)

11
(—)

32
(—)

Audit & Supervisory Board
members (Outside Audit &Supervisory Board members)

6
(3)

75
(23)

75
(23)

—
(—)

—
(—)

Total
(Outside officers)

15
(8)

254
(54)

211
(54)

11
(—)

32
(—)

Note: for details of the compensation system for officers, refer to “(4) Officer Compensation, etc.” on pp. 63–68 of the Securities Report for the year ended September 2023
(in Japanese).
https://data.swcms.net/file/mri/dam/jcr:d59a194e-d49d-40f6-aa51-1c1dcecd2826/S100SHP0.pdf

Role

Name

Chairman of the Board

Takashi Morisaki

President andRepresentative Director

Kenji Yabuta

Executive Vice President andRepresentative Director

Yasuteru Hirai

Managing Director

Yoshihiko Ito

Outside Director

Mariko Bando

Outside Director

Ken Kobayashi

Outside Director

Nobuyuki Hirano

Outside Director

Seiji Izumisawa

Outside Director

Satoko Shisai

Audit & Supervisory
Board Member

Junichi Egawa

Audit & Supervisory
Board Member

Toshiyuki Ogawa

Outside Audit &Supervisory Board Member

Kenji Matsuo

Outside Audit &Supervisory Board Member

Yutaka Kawakami

Outside Audit &Supervisory Board Member

Naomi Koshi

Businessmanagement

Legal affairs,risk management

Financialaccounting

Society andpolicyDigitaltechnology

Human
resources

Note: as of December 19, 2023; this is not an exhaustive list of all specialist skills and knowledge possessed by our directors and Audit & Supervisory Board members and candidates

89 Mitsubishi Research Institute Group Report 2023

Mitsubishi Research Institute Group Report 2023

90

Value Creation Model

Governance

I Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Governance

Officers
Directors

Audit & Supervisory Board members

Name

Position andresponsibilities (as ofDecember 19, 2023)

Attendance at Boardof Directors meetings(FY9/23)

Principal positions to date

Name

Position andresponsibilities (as ofDecember 19, 2023)

Attendance at Boardof Directors meetings(FY9/23)

Principal positions to date

Takashi
Morisaki

Chairman of the
Board

100%
(10 of 10 meetings)

Career summary • Joined The Mitsubishi Bank, Ltd. in April 1978. Held various posts,
including Deputy President, at The Bank of Tokyo-Mitsubishi UFJ, Ltd. before becoming
Executive Vice President and Executive Officer of Mitsubishi Research Institute, Inc. in
October 2016. Became President and Representative Director of Mitsubishi ResearchInstitute, Inc. in December 2016 and Chairman of the Board in December 2021 (current).

Junichi
Egawa

Audit & Supervisory
Board Member

100%(10 of 10 meetings)

Career summary • Joined Mitsubishi Research Institute, Inc. in July 1983. General
Manager, Management Accounting and Finance Division, Executive Officer, Deputy
General Manager, Corporate Administration Unit of Mitsubishi Research Institute DCS
Co., Ltd. before becoming Audit & Supervisory Board Member of Mitsubishi ResearchInstitute, Inc. in December 2020 (current).

Kenji
YabutaPresident andRepresentative
Director
Officer in Charge ofInternal Audit Office
and VCP100%(10 of 10 meetings)

Career summary • Joined The Mitsubishi Bank, Ltd. in April 1983. Held various posts,
including Director and Deputy President, at the Bank of Tokyo-Mitsubishi UFJ, Ltd.
before becoming Executive Vice President and Executive Officer of Mitsubishi ResearchInstitute, Inc. in October 2021 and President and Representative Director in December
2021 (current).

100%(8 of 8 meetings)

Career summary • Joined Mitsubishi Research Institute, Inc. in April 1986. Held various
posts, including General Manager of the Social System Research Division, General
Manager of the Corporate Planning Division, President of MRI Research Associates, Inc.,
Managing Executive Officer of Mitsubishi Research Institute, Inc., and General Managerof the Policy Consulting Unit, before becoming Audit & Supervisory Board Member in
December 2022 (current).

Yasuteru
Hirai

Executive Vice
President andRepresentative Director
General Manager,
Corporate
Administration Unit—

Career summary • Joined Mitsubishi Corporation in April 1984. Held various posts,
including Executive Vice President, Corporate Functional Officer, and Director before
becoming Executive Vice President and Executive Officer and General Manager of the
Corporate Administration Unit of Mitsubishi Research Institute, Inc. in October 2023
and Executive Vice President and Representative Director in December 2023 (current).

90%(9 of 10 meetings)

Career summary • Director, President, Representative Executive Officer of Meiji Yasuda
Life Insurance Company in December 2005. Outside Audit & Supervisory Board Memberof Mitsubishi Research Institute, Inc. in December 2015 (current).
Principal concurrent positions • Honorary Advisor of Meiji Yasuda Life Insurance
Company, Outside Director (Audit & Supervisory Committee Member) of Daido SteelCo., Ltd.

—

Career summary • Joined Mitsubishi Research Institute, Inc. in April 1992. Executive
Officer and General Manager of the Social ICT Innovation Division, and Managing
Executive Officer and General Manager of the Digital Transformation Unit before
becoming Managing Executive Officer and General Manager of the Digital Innovation
Unit in October 2023 and Managing Director and General Manager of the Digital
Innovation Unit in December 2023 (current).

100%(10 of 10 meetings)

Career summary • Partner of Tohmatsu & Co. (now Deloitte Touche Tohmatsu LLC) in
June 1990. Member of Management Council, General Manager of Human Resources
Department of Tohmatsu & Co. in June 2007. Retired from Deloitte Touche Tohmatsu
LLC in September 2016.Outside Audit & Supervisory Board Member of Mitsubishi
Research Institute, Inc. in December 2020 (current).
Principal concurrent positions • Outside Audit & Supervisory Board Member of Asahi
Group Holdings, Ltd.

100%
(10 of 10 meetings)

Career summary • Director General of Gender Equality Bureau, Cabinet Office inJanuary 2001. Chancellor (Rijicho) of Showa Women’s University in April 2014.
Chancellor (Socho) of Showa Women’s University in July 2016 (current). Outside
Director of Mitsubishi Research Institute, Inc. in December 2019 (current).
Principal concurrent positions • Chancellor (Socho) of Showa Women’s University,
Outside Director of MS&AD Insurance Group Holdings, Inc., External Director of Itoki
Corporation—

Career summary • Attorney with Nishimura & Partners (now Nishimura & Asahi) in
October 2002. Mayor of Otsu City in January 2012. Partner Lawyer of Miura & Partners in
September 2020 (current), Co-Founder and CEO of OnBoard K.K. in February 2021
(current), Outside Audit & Supervisory Board Member of Mitsubishi Research Institute, Inc.
in December 2023 (current).
Principal concurrent positions • Partner Lawyer of Miura & Partners, Co-Founder and
CEO of OnBoard K.K., Outside Director of V-cube, Inc., External Director of SoftBank Corp.

100%(10 of 10 meetings)

Career summary • Became President of Mitsubishi Corporation in June 2010 and
Director of Mitsubishi Research Institute, Inc. in December 2021 (current). Corporate
Advisor of Mitsubishi Corporation in June 2022 (current).
Principal concurrent positions • Corporate Advisor of Mitsubishi Corporation,
Outside Director of Nissin Foods Holdings Co., Ltd., Outside Director of Mitsubishi
Heavy Industries, Ltd.

Yoshihiko
Ito

MarikoBando

Ken
Kobayashi

Nobuyuki
HiranoSeiji
Izumisawa

SatokoShisaiManaging Director
General Manager,
Digital Innovation Unit

Outside Director
Independent Officer

Outside Director
Independent Officer

Outside Director
Independent Officer

Outside Director
Independent Officer

Outside Director
Independent Officer

91 Mitsubishi Research Institute Group Report 2023

100%
(10 of 10 meetings)

100%(8 of 8 meetings)—

Career summary • Became President of The Bank of Tokyo-Mitsubishi UFJ, Ltd. in April
2012, President of Mitsubishi UFJ Financial Group, Inc. in April 2013, Senior Corporate
Advisor of MUFG Bank, Ltd. in April 2021 (current), and Director of Mitsubishi ResearchInstitute, Inc. in December 2021 (current).
Principal concurrent positions • Executive Corporate Advisor of The Bank ofTokyo-Mitsubishi UFJ, Ltd., Outside Director of Mitsubishi Heavy Industries, Ltd.

Career summary • Became President & CEO, CSO of Mitsubishi Heavy Industries, Ltd.
in April 2019, President & CEO of Mitsubishi Heavy Industries, Ltd. in April 2020
(current), and Director of Mitsubishi Research Institute, Inc. in December 2022 (current).
Principal concurrent positions • President & CEO of Mitsubishi Heavy Industries, Ltd.

Career summary • Became Vice President in charge of Government Office Systems,
Enterprise Business of IBM Japan, Ltd. in January 2018, and Executive Vice President andHead of the Digital Transformation Unit of Chugai Pharmaceutical Co., Ltd. in April 2022
(current). Became a Director of Mitsubishi Research Institute, Inc. in December 2023.
Principal concurrent positions • Executive Vice President and Head of the Digital
Transformation Unit of Chugai Pharmaceutical Co., Ltd., Independent Director ofPanasonic Connect Co., Ltd.

Toshiyuki
Ogawa

Audit & Supervisory
Board Member

Kenji
MatsuoOutside Audit &Supervisory Board
MemberIndependent Officer

YutakaKawakami

Outside Audit &Supervisory Board
MemberIndependent Officer

Naomi
Koshi

Outside Audit &Supervisory Board
MemberIndependent Officer

Research fellows
Hiroshi Komiyama

Chairman of the InstituteTakaaki Furuya

Senior Research Fellow Company-wide research andrecommendation activities, internal guidance

Keiki Yamada

Senior Research Fellow Company-wide research andrecommendation activities, internal guidanceKazumichi Ito

Executive Officer Research Fellow
Advanced Technology

Executive Officer General Manager, Business Platform Unit
General Manager, Marketing and Alliance Unit

Executive officers
Hiroki Kameda

Senior Managing Executive Officer
Research Institute DCS Co., Ltd.

President & CEO, Mitsubishi

Jun Nobe

Managing Executive Officer Senior Managing Director, Mitsubishi
Research Institute DCS Co., Ltd.

Tomoyuki Takahashi

Kazuo Hiyane

Executive Officer Research Fellow Digital Transformation Technology
Advisor Digital Innovation Unit General Manager, Generative AI Lab

Tetsuya Hanyu

Executive Officer

Minoru Sonoyama

Executive Officer General Manager, Group Corporate
Communications Division

Takahisa Maema

Executive Officer Deputy General Manager, Societal Innovation
Unit General Manager, Regions and Communities Division

Yumiko Yoshiike

Executive Officer

Shoji Kimoto

Executive Officer Unit Head of Industry & Public Unit, Managing
Director & Managing Executive Officer, Mitsubishi Research Institute
DCS Co., Ltd.

Hirofumi Suzuki

Executive Officer President and Representative Director, MRI Research
Associates, Inc.

Takashi Inoue

Executive Officer Deputy General Manager, Corporate Administration

Tatsuya Nakabushi

Executive Officer General Manager, Societal Innovation Unit

Yoko Takeda

Executive Officer Research Fellow General Manager, Think Tank Unit

General Manager, Center for

General Manager, Public Innovation Unit

General Manager, Human Resources Division

Note: independence criteria for outside directors—Outside directors and Audit & Supervisory Board members are deemed independent if neither of following categories are applicable.
(1) Main business partners of the Group or organizations for which the Group is a main business partner, including executives of such organizations(2) Individual professionals or those affiliated with organizations that receive substantial cash or other assets from MRI in addition to compensation as an officer(3) A person with a close relative to whom any of the following applies (excluding persons who do not play a significant role): (a) a party to whom (1) or (2) applies, (b) an
executive of an MRI subsidiary, (c) a party who recently has been an MRI executive or (b)Mitsubishi Research Institute Group Report 2023

92

Value Creation Model

Governance

Mitsubishi Research Institute (MRI) manages risks
comprehensively under its Advanced Risk Management
System (ARMS). Developed in-house, this system enables
us to reduce business-related risks through a timely andefficient PDCA cycle covering all stages from risk
identification and assessment to the monitoring of advanceindications, the implementation of countermeasures, andthe revision of policies and measures to reflect knowledge

gained through these processes.
In the unlikely event of a crisis situation, the Risk
Management Division takes timely and appropriate action
as the coordinating unit. When an alert is in force, as
defined in the rules, or when a situation that can beclassed as an emergency has occurred, there will be an
immediate transition to a crisis response structure under
the leadership of the director in charge or the president.

Risk area

Details of risks

Responses

Information
security

We handle large amounts of confidential data and personal
information belonging to our clients, business partners, andother parties. We regard appropriate information security
management, including the prevention of computer virus
infections, unlawful access through cyber attacks, and theleakage, loss, or destruction of information, as a vital prioritythat is directly linked to our reputation.

We are continually and comprehensively enhancing our
information management through specific measures that
include access control, security measures covering data andnetwork equipment, the development of operational rules,
compliance with local laws at overseas offices, adaptation to
network environments, regular training for employees, and drills
based on information leakage scenarios. We have also
developed information handling rules covering the methods
used to handle information in a remote working environment.

Our business activities consist mainly of individual projects.
Even if a project appears likely to be profitable when the order isreceived, there is a risk that profit margins will be eroded byvarious factors, such as increased workloads resulting fromincreased client expectations or project complexity, or changes inthe business environment during the project. Profits can also be
impacted by quality issues stemming from inadequate
management, or by other unexpected contingencies. Further,public sector projects are subject to greater accounting
transparency and regulation of unfair competition.

Group companies apply a set of shared standards to assess
projects’ risk potential ahead of accepting orders. At the project
execution stage, we employ internal systems to monitor at-risk
projects. We also operate an automatic alert system for profit
margins and other parameters. In addition, projects are subject
to ongoing supervision by project managers, combined withchecking by line managers. We are also continually enhancing
the Group’s Internal Control Systems, which include regulatorycompliance and risk management mechanisms.

Our commitment to VCP Management has resulted in an
increase in the number of business initiatives requiring businessand capital partnerships. There is a risk of damage to MRI’s
reputation due to greater-than-expected changes in thebusiness environment, changes in the status of business
partners, an increase in complaints and claims from service
users, or system failures or service disruptions. These could also
lead to the suspension of business operations or compensation
claims from users. When using AI and other technologies, weneed to ensure fairness, transparency, safety, and accountability.

Decisions on whether to proceed with business initiatives arepreceded by comprehensive checking of business forecasts,
anticipated investment returns, and risk factors. The status ofbusinesses is monitored under our New Business Creation
Standards. Compliance with MRI’s AI Business Guidelines is arequirement from a risk avoidance perspective whendeveloping new businesses that involve the use of AI andother new technologies.

Human
resources

Recruitment has become increasingly difficult in Japanese andoverseas labor markets, and the market as a whole has become
more volatile. To address the diverse needs of our clients andsociety and achieve sustainable growth, we need to recruit andtrain people who combine advanced specialist skills withoriginality and creativity, and to create opportunities for thosepeople to use their talents.

We are working to develop pleasant and energizing working
environments that provide room for growth under our humanresource management policies. Furthermore, we are expanding
recruitment, especially of mid-career personnel, enhancing
training programs, implementing diversity, equity, and inclusion
measures, and maintaining comprehensive harassment
prevention systems. We also provide enhanced welfare systems,
such as childcare support.

Generative AI

We believe that we can enhance the value of MRI by appropriately
using generative AI based on an understanding of its characteristics.
However, this technology must be used with caution at present
because of various risks, including the frequent output of incorrect
results, information leaks resulting from inputs of confidential data,
and the violation of copyrights in AI outputs. With the spread ofgenerative AI, there is also a risk that the MRI Group will losebusiness opportunities and competitiveness as clients become
able to carry out tasks that they previously entrusted to us.

We have formulated guidelines detailing the proper use ofgenerative AI, which we are using to promote its effective use.
We are also working to prevent the loss of business
opportunities and maintain our competitiveness by making thegreatest possible use of the latest generative AI technology anddevelopments in our projects.

New businesses

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

GovernanceRisk management

Projectmanagement

I Growth Strategy

93 Mitsubishi Research Institute Group Report 2023

Compliance
We regard compliance as a vital management priority andthe foundation for our business activities. We are working
to prevent compliance violations throughout the Group.
Specifically, compliance managers in each corporate unit
and subsidiary share information and take necessary
actions in collaboration with the Risk Management
Division as the coordinating organization. In addition,
yearly compliance workshops based on our Code of
Conduct are held in each workplace as opportunities for
employees to talk about issues that affect them directly.
Officers and employees also participate in e-learning andother continuing education programs.
We have established an internal whistleblowing andadvisory system to facilitate the early discovery andmitigation of compliance issues. In FY9/23, we changed
the name of this system to the “Compliance Helpline”
and began to internally share messages from theCompliance Officer and information about the resultsof Compliance Helpline activities. Through these andother initiatives, we aim to reduce the psychologicalbarriers for employees and build confidence in thesystem. In FY9/23, there was a Group total of 22
reports and requests for advice.
We will continue to take various steps to raiseawareness and ensure that people do not commit
compliance violations or turn a blind eye to such actions.

Code of Conduct
In the spirit of this Code of Conduct, we will hold ourselves to high ethical standards and, tolerating no breach of this code, we will be
responsible and accountable to the future for our actions.
1. Integrity & Fairness

We prioritize integrity and fairness, and always act in a socially accountable manner.

2. Compliance

We comply with all laws, regulations, and internal rules as well as respect societal norms.

3. Respect for Human Rights and Diversity

We reject all forms of discrimination and harassment, in keeping with our respect for human rights and diversity.

4. Consideration for the Environment

We aim to build a sustainable society, and give consideration to the environment.

5. Respect for International Norms

We respect international norms, aware that we are members of the international community.

6. Separation of Public and Private Matters

We clearly separate our public and private matters, never abusing our business position for personal gain.

7. Rigorous Information Security

We appropriately manage and rigorously maintain the confidentiality of all internal information andinformation that we obtain from outside the company.

8. Integrity of Securities Trading

We do not engage in insider trading, whether related to shares in our own companies or other listed companies.

9. Respect for Intellectual Property

We actively develop and utilize our intellectual property while respecting that of others.

10. Non-Association with Anti-Social Forces

We remain resolutely committed to opposing anti-social forces and to blocking any relations with such forces.

11. Anti-Corruption

We neither offer or accept bribes nor engage in any action that could be construed as corruption, resolutely
maintaining our transparency as a responsible corporation.

Shareholder and investor outreach
We held the 54th Annual General Meeting of Shareholders
in December 2023 as a conventional event with physicalattendance at the venue. Twice each year we issue
shareholder reports and conduct shareholder surveys.
Response rates to our surveys are consistently high at
30–40%. Survey results, including comments, arereported to the Board of Directors.
The focus of our IR activities is to deepen
understanding about our management strategies andother aspects of our activities by providing clear
explanations. We hold online briefings about our yearlyand half-yearly financial results and publish our results,
including questions and answers, on our website inJapanese and English. We respond positively to requests

for individual interviews, and in FY9/23 we engaged inwide-ranging discussions about business growthpotential¸ governance, and other topics on almost 80
occasions. We also engaged with major European
investors through an event hosted by a securities
company, during which our president participateddirectly in discussions.
An online seminar for individual investors in January
attracted around 400 participants and included a lively
exchange of questions and answers.
These activities yield valuable feedback fromshareholders and investors. This information is fed backto our management team and used to achieve further
improvement in corporate value.

Mitsubishi Research Institute Group Report 2023

94

Value Creation Model

Governance

I Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

Financial and Corporate Data

Governance

Message from an Outside Director

Message from the Chairman of the Board

Applying my IT and healthcare industry
knowledge to the MRI mission

Leveraging our collective experience to maximize
corporate value and transparency

Satoko Shisai
Outside Director

I was elected as an outside director at the December
2023 General Meeting of Shareholders. My career has
included working as a business manager at a foreign
IT company and as a manager implementing digitaltransformation (DX) at a Japanese company.
The digital transformation in Japan’s private sector
has been remarkable in recent years. DX is not only
making the companies more efficient internally, it isalso enabling them to pursue innovation that creates
new businesses and enhances competitiveness. DX is
also being used to address wider industry and societal
issues, notably in energy, healthcare, and logistics.
Gains by generative AI in 2023 are already changing
our world. Without a doubt this innovative technology
has enormous implications for corporate growth andcompetitiveness. While some companies are alreadyactively integrating it into their systems, others are
cautiously holding off as they seek to grasp the
potential risks. I believe Japanese companies and theJapanese government have an obligation to use newtechnology appropriately, safely, and effectively to
improve overall productivity and accelerate innovationin our society.
The MRI Group is using generative AI as one of its

95 Mitsubishi Research Institute Group Report 2023

IV Initiatives to Support Value Creation

DX initiatives and is already seeing positive results,
such as in the quick and accurate creation of reports.
The knowledge and know-how the Group accumulatingfrom applying generative AI to its own operations will
make it even better able to make advanced proposals togovernment agencies and companies. I also expect that
it is these efforts to improve productivity in systemdevelopment that will provide insight and momentum
for delivering effective solutions for the labor shortagein the IT industry. The digital transformation of
government agencies still has a long way to go todeliver on the promise for improved conveniences forthe public and lower administrative costs. MRI’s Think
Tank Function has a strong track record in policy
proposals, but it will need to further strengthen thesecapabilities and provide support for innovation thatwill directly connect to the implementation of theemerging advanced technologies into society.
The MRI Group has set an ambitious mission of
being a company that resolves societal issues. Its
Medium-Term Management Plan 2026 envisions what
it wants society to be and what MRI’s role should be in
2030. The plan mobilizes the Group to use its Think
Tank Function, Societal and Public Innovation, Digital
Innovation, and Financial System Innovation businesses
to advance innovation that will massively change
society and support the Group’s business growth.
Achieving those goals will require the incorporationof AI and other new technologies as well as the hiring
and training of talent to make that possible. No lesscritical will be having a sales force capable of leading
customer innovation, actively forming alliances withother companies, and reforming the corporate culture.
I intend to dig deep into my knowledge of the IT and
healthcare industries to help the MRI Group fulfill its
mission to be a company resolving societal issues.

Takashi Morisaki

Chairman of the Board

Discussing growth driven by our distinctive strengths
The Board’s primary focus over the past year has been
MP2026. Under the previous MP2023 we ledtransformation to a post-pandemic world byimplementing workstyle reforms and delivering societal
solutions through our Value Creation Process (VCP),
besides meeting financial targets. Integrated
management, however, was behind schedule, prompting
intense debate aimed at streamlining progress.
As a result we proposed reorganizing around fourmain business fields* across the entire Group. Withineach of these, and transcending distinctions between
MRI and DCS, we are focusing on DX, GX, and HX†,
the transformations most in demand by ourcustomers. We expect this framework to drive Group
growth and significantly add to our ability to resolve
customer issues.
* Think Tank Function, Societal and Public Innovation, Digital Innovation, andFinancial System Innovation† DX: digital transformation
GX: green transformation
HX: human resource and healthcare transformation

Greater diversity for more effective governanceIn our annual effectiveness evaluation survey, the item
“free and open debate” has consistently received highmarks. The Board of Directors engaged in lively
discussion not only on particular topics such as

generative AI, DE&I‡, and risk management, but also
on the future vision of the Group as a whole.
Upon the counsel of outside directors, we proposed
two notable initiatives to boost the Board’s effectiveness.
First, we are reenforcing risk management tocounter increasing uncertainty in the environment of
our expanding business domains. To identify andrespond adeptly to swiftly evolving risks, we havereviewed our risk map and resolved to monitor risk
impact with greater granularity.
The second initiative addresses the Board’s diversity.
DX presents profitable business opportunities amid
rapidly evolving technology and environmental shifts.
The risk of unforeseen disruption accompanies suchfast-paced change. In response, we have enhanced theBoard’s diversity by welcoming two new outside
directors. Ms. Shisai brings her proven expertise inDX, and Ms. Koshi brings her astute legal knowledgeof both domestic and international affairs. Theirappointments will strengthen governance with abroader range of perspectives.
‡ Diversity, Equity & Inclusion

Toward increased corporate value
The Group stands out for its globally rare integrationof think tank consulting and IT services in a publicly
traded company. Given this unique configuration, we
have a mission to communicate the Group’s corporate
value proposition in the clearest and most concise
terms possible.
To maximize transparency and corporate value, I
will apply all I have learned in my five years aspresident and as an outside director at other firms.
This extends beyond financial value to include thesocial value and non-financial value that we generate asa societal solution company. Going forward, I am
determined to continually enhance the effectiveness of
the Board of Directors with a view toward earning theenduring trust of all stakeholders.

Mitsubishi Research Institute Group Report 2023

96

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

10-year Financial Summary
FY9/14

FY9/15

FY9/16

FY9/17

FY9/18FY9/19FY9/20FY9/21

FY9/22

FY9/23Financial results (¥ mn)
Net sales

87,40085,35486,90489,46690,25090,02992,020103,030

116,620

122,126

Operating profit

6,079

5,552

5,495

5,731

4,963

5,130

6,231

6,853

9,165

8,688

Ordinary profit

6,442

5,813

5,877

6,258

5,364

5,718

8,387

7,568

10,493

10,002

Profit attributable to owners of parent

3,405

3,692

3,425

3,833

3,402

3,599

7,096

5,009

7,707

6,287

Total assets

65,35467,094

71,77775,65478,60084,56896,25399,704

114,652

118,009

Net assets

42,155

44,134

46,91050,39553,28454,84361,541

63,836

71,151

74,385

Cash flows from operating activities

5,056

7,778

5,052

6,582

7,013

8,726

8,637

3,252

9,256

5,695

Cash flows from investing activities-5,733-1,608-996-5,368-3,129-2,768-749-1,970-6,654-2,411

Cash flows from financing activities-1,127-1,319-1,335-2,164-1,826-2,360-1,106-4,624-3,850-6,199Equity-to-asset ratio

55.9

57.3

56.9

57.8

59.1

56.7

56.0

56.4

55.0

55.8

Rate of return on equity (ROE)

9.7

9.9

8.6

9.1

7.5

7.6

13.9

9.1

12.8

9.8

Ordinary profit to net sales ratio

7.4

6.8

6.8

7.0

5.9

6.4

9.1

7.3

9.0

8.2

Payout ratio

21.7

24.5

31.2

31.9

40.6

42.9

30.9

37.3

29.5

38.2

Basic earnings per share (EPS)

207.36224.83208.55235.08209.46221.58436.64308.60474.67392.27

Book value per share (BPS)

2,222.92

2,340.10

2,488.48

2,692.31

2,859.70

2,950.94

3,313.34

3,471.53

3,880.03

4,137.76

Annual dividend per share

45.00

55.00

65.00

75.00

85.00

95.00

135.00115.00140.00150.00

13.21

13.07

15.20

14.10

20.91

16.18

10.15

14.27

9.39

12.34

3,580

3,659

3,741

3,842

3,918

4,011

4,133

4,231

4,235

4,428

Financial position (¥ mn)

Cash flow (¥ mn)

Financial and management indicators (%)

Per share data (yen)Stock price index (times)
Price-equity ratio (PER)
Number of employees as of September 2023
Number of employees

97 Mitsubishi Research Institute Group Report 2023

Mitsubishi Research Institute Group Report 2023

98

Value Creation ModelI Growth Strategy

II How We Address Societal Issues

Company Profile

III The Source of Our Advantage

IV Initiatives to Support Value Creation

Financial and Corporate Data

Who We Are

Mitsubishi Research Institute, Inc.

Mitsubishi Research Institute DCS Co., Ltd.

Head officeBusiness profile

IIn addition to its extensive experience in the design, development, and administration of systems for financial institutions,theMitsubishi
Institute,
Mitsubishi Research Institute DCS We,
also excels
in system
and business Research
process outsourcing
services based on its own data center. In
recent years it has enhanced its support for clients’ digital transformation initiatives by creating cloud environments and byareaJapanese
think
tank.
introducing new technologies such as AI, RPA, data analysis, and robotics.
12-2, Higashishinagawa 4-Chome, Shinagawa-ku Tokyo
140-8506, JapanFor over half a century, we have

10-3, Nagatacho 2-Chome, Chiyoda-ku, Tokyo
100-8141, Japan

Date of establishment

May 8, 1970

Representative directors

Kenji Yabuta, President
Yasuteru Hirai, Executive Vice President

Head office

Chairman of the Institute

Hiroshi Komiyama

Date of establishment

Capital stock6.336 billion yen

Representative director

Number of employees

1,150 (non-consolidated)
4,428 (consolidated) (as of September 30, 2023)

Capital stockGroup companies

Mitsubishi Research Institute DCS Co., Ltd.
MRI Business, Inc.
MRI Research Associates, Inc.
MPX, Inc.
MRIA International Inc.

Group Companies

Number of employees

MRI Business, Inc.

Share-related information (as of September 30, 2023)
Authorized shares:

Business profile

Principal shareholders (Top 11 shareholders)

60,000,000

Number of shares issued: 16,424,080

Number ofsharesShareholding
ratio (%)

The Master Trust Bank of Japan, Ltd. (trust account)

1,868,900

11.64

Mitsubishi Corporation

975,076

6.07

Mitsubishi Heavy Industries, Ltd.

975,000

6.07

Mitsubishi Electric Corporation

902,200

5.62

Mitsubishi Research Institute Group
Employee Shareholding Association

792,380

4.93

Mitsubishi Chemical Corporation

624,000

3.88

Mitsubishi Materials Corporation

554,600

3.45

Custody Bank of Japan, Ltd. (trust account)506,900

3.15

MUFG Bank, Ltd.

505,074

3.14

AGC Inc.

447,500

2.78

Mitsubishi Estate Co., Ltd.

447,500

Shareholder’s name

Number of shareholders: 8,703
Shareholder composition
Central and regional
government entities

Individuals
and others

19.94%

0.01%

Financial
institutions

25.68%

Foreigninstitutions andindividuals

16.12%

Securities
companies

1.22%

Other domestic
companies

provided the public and private
sectors with research and consulting
6.059 billion yen
services in fields spanning energy,
2,297 (non-consolidated)the environment, healthcare, human
2,996 (consolidated) (as of September 30, 2023)
resources, and digital transformation.
July 10, 1970

Hiroki Kameda, President & CEO

MD Business Partner Co., Ltd.
MRI Value Consulting & Solutions Co., Ltd.
IT-One Co., Ltd.

We build real-world solutions with
our Group companies and business
partners, and propose public policies
As an outsourcer for the MRI Group,
Businesstheseprovides corporate
project
support, including general administration,
toMRI
guide
effortsandformaximizing
facility management, procurement management, and human resource processes. It also offers business support in various
socialimpact.
other areas, such as document design,
eventsmanagement, video production, and merchandise.

Head office10-3, Nagatacho 2-Chome, Chiyoda-ku, Tokyo
100-0014, Japan

Date of establishment

October 1, 1970

A publicly traded company, we
stringently maintain an independent
Representative director
Naoko Sakamoto, President
position, which has enabled us to
Capital stock
60 million yen
develop an interdisciplinary network
Number of employees
92 (as of September 30, 2023)
with members of industry, academia,
and government. We act as a hub
MRI Research Associates, Inc.
connecting all sectors to overcome
Business profile
MRI Research Associates’ core activities
are surveys, analysis,complex
and consultationin fields that include
national spatial policy, regional andincreasingly
societalissues.
urban planning, transportation and telecommunications, healthcare, long-term care, welfare, disaster prevention, safety, theenvironment, and energy. Services span data analysis, statistical analysis, and simulation relating to natural and societal phenomena.

Head office

We envision
the future, resolve societal
10-3, Nagatacho 2-Chome, Chiyoda-ku,
Tokyo
100-0014, Japan

2.78

Date of establishment

May 31, 1984

(Notes)1. The shareholding ratio is calculated after deducting treasury stocks (380,483 shares)
2. The number of treasury stocks does not include Company stock (141,146 shares) owned by Board
members’ compensation BIP trust

Representative director

Hirofumi Suzuki, President

Capital stock

60 million yen

Number of employees

175 (as of September 30, 2023)

issues, and lead change to build
a sustainable and prosperous world.

Shareholder composition
Number of shares Shareholding
held (thousands
ratio (%)
of shares)

Number ofshareholders

Composition
ratio (%)

Central and regional
government entities

1

0.01

1

0.01

Financial institutions

19

0.22

4,218

25.68

Securities companies

26

0.30

199

1.22

Other domestic companies

115

1.32

6,081

Foreign institutions andindividuals

179

2.06

Individuals and others

8,363

96.09

37.03%

Total

8,703

100.00

MPX, Inc.
Business profile

In addition to providing a platform for the analysis of wholesale electric power markets, MPX, Inc. also offers services that include
market risk management for electric power businesses, and the valuation of renewable energy power sources. It uses original,
advanced modeling technology and solutions to support the businesses of its clients.

Head office

GRANBIZ Tokyo Nihonbashi 5F, 10-5, Nihonbashi 2-Chome,
Chuo-ku, Tokyo 103-0027, Japan

37.03

Date of establishment

October 1, 2022

2,648

16.12

Representative director

Gen Arao, Representative Director and President

3,275

19.94

Capital stock

90 million yen

Number of employees

10 (as of September 30, 2023)

16,424100.00Note: the number of shares is rounded down to the nearest hundred

1 99
Mitsubishi
Research
Institute
Mitsubishi
Research
Institute
GroupGroup
ReportReport
2023 2023

2 100

Mitsubishi
Research
Institute
Mitsubishi
Research
Institute
GroupGroup
ReportReport
2023 2023

Group Corporate Communications Division
10-3, Nagatacho 2-Chome, Chiyoda-ku,
Tokyo 100-8141 Japan
TEL: +81-3-6705-6000
www.mri.co.jp/en/index.html

アタリ

Published: May 2024

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