COMPANY RESEARCH AND ANALYSIS REPORT

Mitsubishi Research Institute, Inc.
3636
Tokyo Stock Exchange Prime Market

20-Sept.-2022
FISCO Ltd. Analyst

Yoichiro Shimizu

FISCO Ltd.
https://www.fisco.co.jp

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. Outline of cumulative results for FY9/22 3Q.................................................................................................

01

2. Consolidated outlook for FY9/22.................................................................................................................

01

3. Overview of Medium-Term Management Plan. ............................................................................................

02■Company profile---------------------------------------------------------------------------------------------------------------------------------------------------------- 03
1. Company profile.. ................................... ......................................................................................................

03

2. The features and strengthens of the Mitsubishi Research Institute Group. ..................................................

05■Business overview---------------------------------------------------------------------------------------------------------------------------------------------------- 08
1. The units providing Think Tank & Consulting Services. ................................................................................

08

2. The units providing IT Services.............. ......................................................................................................

10■Results trends--------------------------------------------------------------------------------------------------------------------------------------------------------------- 12
1. Cumulative Results for FY 9/22 3Q..............................................................................................................

12

2. Financial condition and business indicators.................................................................................................

13■Outlook-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 14■Medium- to long-term growth strategy------------------------------------------------------------------------------------------------ 16
1. Summary of the Medium-Term Management Plan. ......................................................................................

16

2. The paths taken for the five transformations. ...............................................................................................

17■Shareholder return policy---------------------------------------------------------------------------------------------------------------------------------- 20

We encourage readers to review our complete legal statement on “Disclaimer” page.

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html■ Summary
A think tank group that resolves societal issues by taking onfunctions from Research & Recommendations through to Societal
Implementation. Achieved record-high results in FY9/22 3Q. Is
focusing on VCP management to further grow sales and profits
Mitsubishi Research Institute, Inc. <3636> (hereafter, also “the Company,”) is a full-range research institute groupconducting the Think Tank & Consulting Services business, which involves surveys, research, policy support, andmanagement strategy support, and the IT Services business, which involves providing ICT solutions services, for
its customers of government ministries and agencies and private-sector companies. Since its establishment in
1970, it has participated in important projects both in Japan and overseas and has continued to present its vision
to society of always being a compass for the times. Nearly 30% of its consolidated net sales are from government
ministries and agencies-related (FY9/21), which forms a stable earnings foundation. In 2020 on the occasion of the50th anniversary of its establishment, it formulated the Medium-Term Management Plan 2023, through which it isconsidered to be further transforming to become a think tank group that resolves societal issues to achieve bothsustainable growth and improved enterprise value.
1. Outline of cumulative results for FY9/22 3Q
In the FY9/22 3Q consolidated results, net sales increased 14.0%* compared to the same period in the previous
fiscal year (year-on-year (YoY)) to ¥91,673mn, operating profit rose 40.6%* to ¥9,335mn, ordinary profit grew 41.6%
to ¥10,430mn, and profit attributable to owners of parent increased 54.9% to ¥7,819mn. The factors causing sales
and profits to increase were the steadily implementation of the various measures in the Medium-Term Management
Plan 2023, the active development of the DX-related business, which is a growth business, for the private sector
and for government, and the efforts to improve productivity and to reduce costs through office reforms. As a result,net sales, operating profit, and ordinary profit were all record-high results for a 3Q. The Company adopted the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) from the start of FY9/22,
and as a result, net sales increased ¥2,981mn, operating profit and ordinary profit increased ¥952mn, and profit
attributable to owners of parent increased ¥522mn.
*	The Company adopted the Accounting Standard for Revenue Recognition from FY9/22, so the comparison of results withthose of the previous period are included as reference values.

2. Consolidated outlook for FY9/22
For the FY9/22 consolidated results, the Company upwardly revised the forecasts at the same time as it announced
the 3Q results (August 1, 2022), continuing on from the time it announced the 1H results. It is forecasting higher
sales and profits, with net sales to increase 13.6% YoY to ¥117,000mn, operating profit to rise 34.2% to ¥9,200mn,
ordinary profit to grow 37.4% to ¥10,400mn, and profit attributable to owners of parent to increase 49.7% to¥7,500mn. Based on the excellent results up to FY9/22 3Q, it has upwardly revised the initial forecasts by ¥4,000mn
for net sales, by ¥2,000mn for operating profit, by ¥2,200mn for ordinary profit, and by ¥2,000mn for profit attributable to owners of parent. It is aiming to achieve these results forecasts by continuing to focus on its businesses
for government ministries and agencies, including the strongly performing DX business, and on its businesses forthe finance and credit cards fields.

We encourage readers to review our complete legal statement on “Disclaimer” page.

01 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Summary

3. Overview of Medium-Term Management Plan
In November 2020, the Mitsubishi Research Institute Group announced the Medium-Term Management Plan
2023 in which it sets out its three basic policies of “VCP management,” “consolidated management,” and “newnormal management.” “VCP (Value Creation Process) management” aims to resolve societal issues and to growbusiness opportunities through business activities with an awareness of connecting to the provision of four typesof value (A: Research & Recommendations, B: Analysis & Conceptualization, C: Design & Testing, and D: Societal
Implementation) as a full-range research institute group. It expresses its determination to strengthen A: Research& Recommendations and D: Societal Implementation, in addition to strengthening the functions of its previous
strengths of B: Analysis & Conceptualization and C: Design & Testing, playing a key role in making reforms takeroot in society. It is also aiming to improve the quality of the value chain as a whole by organically connecting
each of the functions. The benefits it envisages from this include that the findings obtained from D: Societal
Implementation will be fed back to the other three functions and that it will be able to conduct more realistic Research& Recommendations activities.
With regards to “consolidated management,” in order to increase the effectiveness of VCP management, theCompany’s policy is to further promote collaborations with the core companies in the Group, of Mitsubishi ResearchInstitute DCS (DCS), Japan Business Systems <5036> (JBS)*, and INES <9742> and to effectively utilize the assets
within the Group. Also, to create new businesses, such as the DX business, it is not limiting itself to the Groupand actively exploring collaborations with non-Group companies and organizations, including venture companies,
overseas companies, and major companies.
*	Listed on the Tokyo Stock Exchange (TSE) Standard market on August 2, 2022

“New normal management” refers to the acceleration of work style reforms within the Group companies because theMitsubishi Research Institute Group is conducting in advance of others various reforms associated with the novel
coronavirus pandemic (hereafter, COVID-19). Through this, it is realizing an optimized work-life balance for employees
and a maximized business performance. In addition, one of its aims is to connect the findings it obtains throughpioneering these reforms to VCP management’s Research & Recommendations and Societal Implementation, andthereby to create new business opportunities.
Based on the above basic policy, the Group is conducting three business-related transformations of “GrowthBusinesses Transformation,” “Core Business Transformation” and “Think Tank Function Transformation,” andtwo infrastructure-related transformations of “Human Resources and Organizational Culture Transformation” and“Management Systems Transformation.” Through these transformations, its policy is to grow the total of “social
value” realized by resolving societal issues, “non-financial value” realized by the sustainable growth of people andorganizations, and “financial value” brought about by business growth to achieve both sustainable growth andimproved shareholder value. As the specific financial targets in the Medium-Term Management Plan 2023, theMitsubishi Research Institute Group is targeting ordinary profit of ¥10bn (a compound annual growth rate (CAGR)
of 12%) and Return on Equity (ROE) of 10% in FY9/23. Of these targets, alongside the upwardly revised forecasts
announced on August 1, 2022, it expects to achieve the ordinary profit target of ¥10bn one year ahead of schedule
in FY9/22.

We encourage readers to review our complete legal statement on “Disclaimer” page.

02 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Summary

Key Points
A think tank group that “initiates resolutions to societal issues” as a business entity in addition to Research &Recommendations and other functions• In FY9/22 3Q, every sales and profit item achieved record-high results• Businesses are growing through the measures in the Medium-Term Management Plan 2023, so expects toachieve the plan’s ordinary profit target in FY9/22 ahead of schedule•

Results trends
Net sales (left)

Operating profit (right)(¥mn)
120,000

9,200

90,000(¥mn)
10,000

7,500

6,853
6,231
4,963

5,130

60,000117,000
90,25090,02992,0205,000

103,030

30,0002,500

00
FY9/18FY9/19FY9/20FY9/21

FY9/22 E

Note 1: Due to the adoption of the Accounting Standard for Revenue Recognition, etc., from FY9/22, the method of recording
net sales has changed
Note 2: the FY9/22 values are the revised values announced on August 1, 2022
Source: Prepared by FISCO from the Company’s financial results■ Company profile
A pioneering private sector think tank. Since its establishment, it has
been contributing to an prosperous future society through resolving
societal issues
1. Company profile
The Company was established in 1970 through investment by 27 companies in the Mitsubishi Group as a businessto commemorate the 100th anniversary of the establishment of Mitsubishi, and it can be said to be a pioneering
private sector think tank. It provides think tank and consulting services and IT services to a wide range of customers,from government ministries and agencies and finance and credit cards-related companies, through to general
private-sector companies.

We encourage readers to review our complete legal statement on “Disclaimer” page.

03 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Company profile

In the 1980s, the Company established businesses in four think tank fields (economics and management, society
and the public sector, science and technology, and systems and information), and then in the 1990s, it forged asolid presence supporting policy development for government ministries and agencies. On entering the 2000s, itmade a consolidated subsidiary of DCS and launched a fully-fledged ICT solutions business. In recent years, it
has been progressing “VCP management,” in which it undertakes the Value Creation Process, from Research &Recommendations through to Societal Implementation.
2020 was the 50th anniversary of the Company’s establishment. On considering society and the role that theCompany has played within it up to the present time and furthermore the role that each employee is expected toplay in the future, it formulated its New Guiding Principles, that “We, the Mitsubishi Research Institute, will continuallyenvision a desirable future, resolve societal issues, and lead change in society to co-create a prosperous, sustainable
future.” Toward the next 50 years, it is ready to conduct daily work with greater awareness of its responsibility as acompany that resolves societal issues.
History
Date

Summary

May 1970

Mitsubishi Research Institute, Inc. was established with capital of ¥500mn in Yurakucho, Chiyoda-ku, Tokyo, in order to conductbusinesses including survey and analysis work, outsourced survey and consulting work, and information processing services

October 1970

Technology & Economy Information Center, Inc. (currently MRI Business, Inc.) was established and started information processing
services and printing-related work

May 1979

The head office was relocated to Otemachi, Chiyoda-ku, Tokyo

May 1984

System 21 Inc. (currently MRI Research Associates Inc.) was established and expanded software development work and asurveys and analysis business related to it

August 1987

MRI Career Staff Inc. (currently MD Business Partner Inc.) was established and started a human resources dispatch business
related to survey support work, etc.

October 2000

Newly established the Business Solutions Division and started a fully-fledged solutions business

December 2004

Acquired the shares of Diamond Computer Service Co., Ltd. (currently Mitsubishi Research Institute DCS Co., Ltd.)March 2005

Acquired additional shares of Diamond Computer Service Co., Ltd. (currently Mitsubishi Research Institute DCS Co., Ltd.) andmade it a subsidiary

April 2005

Alongside the new establishment of the Consulting Business Division, strengthened the business structure and sales structure forprivate-sector companies through a business collaboration with Bank of Tokyo-Mitsubishi, Ltd. (currently MUFG Bank, Ltd.)

April 2007

Changed the trade name of Diamond Computer Service Co., Ltd. to Mitsubishi Research Institute DCS Co., Ltd.

December 2008

Acquired additional shares of Mitsubishi Research Institute DCS Co., Ltd. (ratio of voting rights held of this company, 80%)

June 2009

In order to strengthen the ERP (companies’ core work systems) business, established MRI Value Consulting Co., Ltd. through a
joint venture with Mitsubishi Electric Information Systems Corporation

June 2010

Conducted a company split of consolidated subsidiary Diamond Fuji Soft Co., Ltd. and made Mitsubishi Research Institute DCS
Co., Ltd. a wholly-owned subsidiary. Changed trade name to MRV Solutions Co., Ltd.

September 2010

Designated as an issue listed on the Tokyo Stock Exchange (TSE) 1st section

October 2010

Consolidated subsidiary MRV Solutions Co., Ltd. conducted an absorption merger of MRI Value Consulting Inc. and the tradename was changed to MRI Value Consulting & Solutions Co., Ltd.

December 2011

Mitsubishi Research Institute DCS Co., Ltd. conducted an absorption merger of consolidated subsidiary DCS Business Partner
Co., Ltd.
Changed the trade name of consolidated subsidiary DC Operations Co., Ltd. to MD Business Partner Co., Ltd.

April 2014

For an alliance for a collaborative platform business, acquired the shares of JBS, Inc. (currently Japan Business Systems, Inc.) andmade it an equity-method affiliate

May 2018

Entered-into a business and capital alliance with INES Corporation in order to expand cutting-edge technological services andsystems solutions, focused on the public sector and financial fields

October 2019

Made INES Corporation an equity-method affiliate in order to further strengthen the alliance and to accelerate joint initiatives innew business fields

December 2020

Opened a base in Vietnam (Hanoi) toward developing a business to solve societal issues overseas

February 2021

Opened a base in the UAE (Dubai)

April 2022

Listing was transferred to the TSE Prime market

Source: Prepared by FISCO from the companies’ securities reports

We encourage readers to review our complete legal statement on “Disclaimer” page.

04 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Company profile

2. The features and strengthens of the Mitsubishi Research Institute Group(1) Work for government ministries and agencies is its solid business foundation
The Company, which forged a solid presence in the 1990s supporting policy development for government ministries and agencies, subsequently also actively supported government’s policy development, systems design,and project promotion and built strong relationships with the main government ministries. In fact, in FY9/21, 27%
of its total consolidated net sales were provided by government ministries and agencies and they are one of the
Mitsubishi Research Institute Group’s main customers. The track record and the trust that it has accumulated
over many years from the policy development stage and its integrated strengths that enable it to respond across
many fields for various issues are strengths that competitor companies cannot imitate overnight.
The work outsourced to the Group in FY2020 by government ministries and agencies included the “COVID-19
AI and Simulation Project” (Cabinet Secretariat), “Development Demonstrations for Realizing Local 5G to Solve
Local Issues,” (Ministry of Internal Affairs and Communications), and “Project to acquire, disseminate, and promoteinternational standards relating to energy saving, etc.” (Ministry of Economy, Trade and Industry). In FY2021, it
was outsourced projects in a wide range of fields from various government ministries and agencies, including“Survey research relating to the revitalization of the data distribution market” (Cabinet Secretariat) and “Project
for a ‘dialogue with the child-raising generation in regions’ relating to JECS surveys” (Ministry of the Environment,
Minister’s Secretariat). From this, it can be seen that the Group is playing its part in policy development in Japan.

Percentages of total consolidated net sales by customers (FY9/21)

General Private
Sector26.8%

Public Sector
26.8%

Finance andcredit card
46.4%

Source: Prepared by FISCO from the Company’s financial results briefing materials

We encourage readers to review our complete legal statement on “Disclaimer” page.

05 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Company profile

Examples of the main projects outsourced from government ministries and agencies (FY2021)
Customer Name

Project nameCabinet Secretariat

Survey research relating to the revitalization of the data distribution market

Cabinet Secretariat

Survey research work for the demonstration and introduction of the main technologies torealize the with-COVID-19 era

Cabinet Office, Director-General for Policy Planning(responsible for economic and financial analyses)

Analysis of economic trends utilizing real time data (household accounts app datautilization)

Digital Agency, Minister’s Secretariat

Procurement support and process management support work to update the government’s
procurement-related systems

Reconstruction Agency, Director-General

Project to strengthen the outside of prefecture independent evacuee support system

Reconstruction Agency, Director-General

Survey and analysis work relating to reputation in Japan and overseas

Ministry of Internal Affairs and Communications,
Minister’s Secretariat

Technological support to update stationary satellite monitoring equipment, etc.

Ministry of Internal Affairs and Communications,
Minister’s Secretariat

Survey research toward the societal implementation of smartphones equipped with the My
Number function

Ministry of Justice, Minister’s Secretariat

Work to support process management, etc., for the family register information coordination
system, etc.

Ministry of Foreign Affairs, Minister’s Secretariat

Local survey work on abandoned chemical weapons in China

Ministry of Finance, Minister’s Secretariat

Support for project management, etc., for the accounting work electronic decision-making
infrastructure and the evidence document management system

Ministry of Education, Culture, Sports, Science andTechnology, Education Policy Bureau

Demonstration research for the utilization of advanced technologies in vocational schools

Ministry of Education, Culture, Sports, Science andTechnology, Education Policy Bureau

Project to promote vocational schools’ recurrent education

Ministry of Health, Labour and Welfare, Minister’s
Secretariat

Survey project on securing the reliability of online clinical trials

Ministry of Health, Labour and Welfare, Health Policy
BureauComprehensive support and survey work for a medical venture total support project

Ministry of Agriculture, Forestry and Fisheries,
Minister’s Secretariat

Outsourced survey project relating to the promotion of food-tech

Ministry of Economy, Trade and Industry, Minister’s
Secretariat

Project for healthcare services’ societal implementation (project for innovation promotion
support, etc.)

Ministry of Economy, Trade and Industry, Minister’s
Secretariat

Survey on actual conditions of manufacturing infrastructure technologies, etc.
(Survey on the technological development and system establishment toward the realizationof a flying car)

Ministry of Land, Infrastructure and Transport,
Minister’s Secretariat

Survey and PR work relating to various issues to improve productivity at construction sites

Ministry of Land, Infrastructure and Transport,
Minister’s Secretariat

Survey on the possibility of technological cooperation in the railway field between Japanand the EU

Ministry of the Environment, Minister’s Secretariat

Project to evaluate the impact of the increasing severity of disasters due to climate change

Ministry of the Environment, Minister’s Secretariat

Project for “dialogue with the child-raising generation in regions” relating to Ecochil surveys

Source: Prepared by FISCO from the Company’s website(2) A diverse pool of human resources with high levels of expertise
One of the factors that has enabled the Company to acquire a track record of many outsourced projects fromgovernment ministries and agencies is that it has researchers with high levels of specialism covering a wide
range of fields. In particular, more than 70% of the Company’s researchers specialize in the natural sciences.
The government’s policy development also requires knowledge relating to the natural sciences, showing highcompatibility with and needs for the Company’s services. Based on the Medium-Term Management Plan 2023 andas one investment in growth, the Mitsubishi Research Institute Group is conducting joint research and personnel
exchanges with research institutes and universities in Japan and overseas. Going forward also, the quality of thehuman resources pool in the Mitsubishi Research Institute Group is expected to improve even more, and as wellas contributing to VCP management, it seems likely to continue to be the source of its competitive advantages.

We encourage readers to review our complete legal statement on “Disclaimer” page.

06 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Company profile

The academic specialties of the Company’s researchers (as of September 30, 2021)

Source: Reprinted from the Company’s website(3) A solid business foundation in the finance and credit cards fields
DCS, one of the main Group companies, was established by separating and making independent the computer
outsourcing computing division of Mitsubishi Bank (currently MUFG Bank). From this formation, DCS conducts aninfrastructure business mainly for the Mitsubishi Group, including development, maintenance, and management
work for core systems in the finance and credit cards fields. The finance and credit cards business provided 46%of the FY9/21 consolidated net sales, which is about the same as that provided by government ministries andagencies, so it is one of the Mitsubishi Research Institute Group’s main business fields.
In the Medium-Term Management Plan 2023, the Mitsubishi Research Institute Group set the DX business, thesubscription-based business, and the overseas business as its growth businesses. Through actively investingin growth fields using the cash generated by the businesses for the government ministries and agencies andthe finance and credit cards fields, which are its base customers, at FISCO we estimate that in the medium- tolong-term, it will accelerate the growth of sales from general industry (private sector) customers as well.
(4) High quality discussions on the Board of Directors
Many of the members of the Company’s Board of Directors have experience of top management in Mitsubishi
Corporation <8058>, MUFG Bank, and Mitsubishi Heavy Industries <7011>. It is said that there are active
discussions on the Board through these directors that possess this abundance of experience. In the future the
VUCA* era will begin in earnest, and in this situation, the Board of Directors is expected to act as the Mitsubishi
Research Institute Group’s compass and to guide it.
*	VUCA standards for Volatility, Uncertainty, Complexity, Ambiguity. It is used as a word to express the current management
environment that is highly uncertain and fluid.

We encourage readers to review our complete legal statement on “Disclaimer” page.

07 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Company profileOn the other hand, from the trends of prioritizing ESG and strengthening corporate governance, going forward
it would seem that the Company will be required to select directors from outside the Mitsubishi Group andspecifically, to add to the Board of Directors experts who have acquired deep knowledge on DX-related. In addition
to securing diversity, at FISCO we think that holding discussions on the Board in which expertise has also been
secured will serve to increasingly strengthen its role as the Group’s compass.

■ Business overview
The Company, which provides Think Tank & Consulting
Services, is responsible for services ranging from Research &Recommendations to Societal Implementation in VCP management,
while DCS is responsible for Societal Implementation focused on IT
Services
In the Mitsubishi Research Institute Group, the Company is mainly responsible for Think Tank & Consulting Services
and DCS for IT Services.
Think Tank & Consulting Services involves providing survey research and consulting services based on the findingson policy and systems that the Company has accumulated since its establishment as a full-range research institute,the findings on and analytical capabilities for societal issues, and the quantitative analysis evaluation techniques andprediction techniques of its researchers who have a wide range of knowledge relating to next-generation advanced
technologies and who specialize in scientific and technological fields. For government ministries and agencies, it
conducts surveys and analyses, policy planning and formulation, and consulting and business support in the socialand public sector fields, including national land maintenance, transportation, information communication, regional
management, medical care and welfare, and education, and also in the science and technology policy fields, such as
the environment, resources and energy, science and technology, and safety policies. For private-sector companies,
it provides consulting on areas including management and business strategies, marketing strategies, personnel
system and organizational reforms, sustainability and ESG management, work innovations, and also ICT consultingthat realizes strengthened business competitiveness.
For IT Services, DCS is the core company and it utilizes the findings and advanced ICT accumulated through theThink Tank & Consulting Services to provide software development, management, maintenance, and information
processing and outsourcing services to various customers, including in the finance, manufacturing, distribution,
services, and education fields. Also, in fields like management system innovations that utilize ICT and businessmodel innovations that utilize the Internet, it provides total support for implementing ICT for management from the
upstream through to the downstream. These various services are provided to customers while collaborating with
JBS, INES and other Group companies.
1. The units providing Think Tank & Consulting Services
The following are the business units that constitute the Company and that are responsible for the functions of A:
Research & Recommendations, B: Analysis & Conceptualization, C: Design & Testing, and D: Societal Implementation
in VCP management.

We encourage readers to review our complete legal statement on “Disclaimer” page.

08 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Business overview(1) The Think Tank Unit
This unit is responsible for A: Research & Recommendations in VCP management. In recent years, it has analyzed elements such as the post-COVID-19 international situation, economic trends. and trends in advanced
technologies, and at the same time, it has depicted an image of what the society of the future should be from a
medium- to long-term perspective and proposed solutions to realize it. Also, in order to create trends in society, it
has been active in areas such as participating in government councils and industry committees and disseminating
information through the media (it conducts these activities as an independent business). In particular, in theMedium-Term Management Plan 2023, this unit is actively progressing Research & Recommendations activities
with an awareness of the connections between the VCP priority fields (“healthcare,” “human resources,” “cities
and mobility,” “energy,” “information communication,” “food and agriculture,” “recycling,” and “resilience”).
(2) The Policy and Consulting Unit
It is responsible for the functions of B: Analysis & Conceptualization and C: Design & Testing, which are the coreof VCP management, and it conducts the research and consulting business, a core business. Its customers
include government ministries and agencies and it supports policy development, system design, and project
promotion through cooperating with experts and business partners. It focuses on growth fields that have a highpublic aspect and which are closely related to policy trends, such as healthcare and energy, and it participatesin projects including surveys and research, technical evaluations, analyses and predictions of the future using
proprietary models, project management, and social demonstrations.
The business areas and the main customers of the Policy and Consulting Unit
Headquarters

Business areas

Main customers

Smart Region Division

Smart cities, infrastructure DX, mobility, andEBPM (Evidence Based Policy Making)Ministry of Land, Infrastructure and Transport, Ministry ofInternal Affairs and Communications, railway operators

Healthcare & Wellness Division

Medical care and nursing care, healthmanagement

Ministry of Health, Labour and Welfare, Japan Agency
for Medical Research and Development

Sustainability Division

The environment, renewable energy,
decarbonized society

Ministry of the Environment, Ministry of Economy, Tradeand Industry, electric power companies

Frontier Technologies Division

Advanced technologies, space and oceans,defense and intelligence

Ministry of Internal Affairs and Communications, Cabinet
Secretariat, Ministry of Economy, Trade and Industry,
telecom carriers

Safety & Industry Division

Disaster prevention and risks, nuclear safety,
industrial innovation

Ministry of Economy, Trade and Industry, Cabinet Office

Source: Prepared by FISCO based on the Mitsubishi Research Institute Group Report 2021

(3) The Business and Consulting Unit
With private-sector companies as the main customers, this unit provides a one-stop service, from proposal
formulation through to implementation, by ascertaining the essential issues facing society and customers, and it
covers VCP management from B: Analysis & Conceptualization and C: Design & Testing through to D: Societal
Implementation. In particular, in the Medium-Term Management Plan 2023, it is actively progressing collaborations
with Group companies and external partners in order to grow the “subscription-based business,” which is oneof the growth businesses. Also, by feeding back to the A: Research & Recommendations function the data andexpertise acquired through the Societal Implementation function, it contributes to creating solution policies thatare realistic and to improving the value of the research and consulting business as a whole. It is one of the units
that are expected to become even more active in the future.

We encourage readers to review our complete legal statement on “Disclaimer” page.

09 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Business overview

The Business Consulting Unit’s business areas and examples of a subscription-based businessBusiness

Business area

Research and consulting business
All industries

Administrative strategy, business strategy, product and service strategy, management strategy, operation strategy

Industry Strategies

Energy, healthcare, mobility, ICT, human resources, food & agriculture etc.

Implementation business (subscription-based business)
EnergyMPX (wholesale electric power transaction information), mega-solar power generation business (development andasset management)

Urban life and mobility

Region Ring (regional digital currency)

Healthcare

Email health notifications (checkup reminders)

Human resources

PRaiO (Matches new college graduates with companies based on information in job application forms), crexta(Human resource management system), JOBMINEs (Job matching system)

Food and agriculture

HACCP navi (food hygiene management)

Source: Prepared by FISCO based on Mitsubishi Research Institute Group Report 2021

(4) The Digital Transformation Unit
To strengthen the response to the rapidly growing DX market, this unit was newly established in October 2020 toaccelerate business in the D: Societal Implementation area of VCP management. Targeting government ministries
and agencies, private-sector companies such as in the manufacturing industry, financial institutions, and others,
it is responsible for developing DX-related solutions and services through co-creation with a variety of partners,
but especially with three Group companies, DCS, JBS, and INES. In particular, it is establishing and progressing“DX journey*1,” “new normal*2,” “data-driven management*3,” and “local government DX” as the important DX
themes. It is working to strengthen the D: Societal Implementation function while also being aware of actively
collaborating with partners.
*1	Accompanying support to realize DX.
*2 work style reforms through digital.
*3	Utilizing data and AI to increase the sophistication of management.

2. The units providing IT Services
The below units belong to DCS and are mainly responsible for D: Societal Implementation in VCP management.
(1) The Industry IT Unit
It is developing two business pillars, the Solution Business and the Service Business. In the Solution Business, it
provides support to implement to DX that is tailored to customers’ needs and situations. In the Service Business,
it is developing a HR (human resources) business and an education business and is focusing on introductions andspreading the use of PROSRV, a HR salary outsourcing service, and miraicompass, an Internet applications service
for elementary, junior high and high schools. Approximately 2,000 businesses offices have introduced PROSRV
and around 1,200 schools have introduced miraicompass, so it seems that needs for these services are high.
(2) The Financial IT Unit
It provides ICT solutions to financial institutions such as the Mitsubishi UFJ Financial Group <8306> (MUFG). It
is responsible for many large-scale projects and important projects, including for banks’ core systems. In recent
years, based on the Medium-Term Management Plan 2023, it has been gradually progressing various operations,
including deepening transactions with existing companies through DX and opening-up new business areas.

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10 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Business overview(3) The Digital Transformation Unit
Centered on systems infrastructure, it is responsible for the research and development of solutions and services
that contribute to customers’ promotion of DX. For systems infrastructure, it is developing cloud services andstorage services that utilize the data centers of DCS. It also has a long history of ICT operations and work-operations outsourcing, and in addition to conventional outsourced operations, it is contributing to work style reforms
and to other areas through digital reforms of ICT operations through support for introducing platforms and apaperless comprehensive support service.
The positions of each unit in VCP management

Source: Mitsubishi Research Institute Group Report 2021

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11 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html■ Results trends
In the FY9/22 3Q, each of net sales, operating profit, and ordinary
profit achieved record highs, contributing to the progress made in
the Medium-Term Management Plan 2023
1. Cumulative Results for FY 9/22 3Q
In the FY9/22 3Q cumulative consolidated results, net sales increased 14.0% YoY to ¥91,673mn, operating profit
rose 40.6% to ¥9,335mn, ordinary profit grew 41.6% to ¥10,430mn, and profit attributable to owners of parent
increased 54.9% to ¥7,819mn, and each of net sales, operating profit, and ordinary profit achieved record-highresults. A factor causing sales and profits to increase was the steadily implementation of the various measures in
the Medium-Term Management Plan 2023. In Think Tank & Consulting Services, the Company actively developed
the DX-related business, which it has positioned as a growth business. This led to outsourcing projects fromgovernment ministries and agencies, including for 5G-related, an AI simulation in relation to the COVID-19 pandemic,
cutting-edge ICT, and energy saving-related. The Company also realized qualitative conversions of projects throughthe reforms of the core businesses. In VCP management, it succeeded in raising the added value of the B: Analysis& Conceptualization and C: Design & Testing functions and in increasing the monetary scale per project. It alsosteadily progressed new normal management. It realized improved productivity and reduced costs through officereforms and other measures, and profits greatly increased compared to in the previous year. In fact, the operating
profit margin rose 1.9 percentage points (pp) YoY to 10.2% and the Company is progressing the conversion to ahigh profit structure. It also steadily developed the subscription-based business, which it has positioned as a growthbusiness. The Internet applications support service miraicompass is steadily growing on the market. In addition,
introductions of Region Ring, which is a regional problem solving-orientated digital currency service, were progressedin commercial facilities, including in Tokyo Marunouchi and Kintetsu Harukas. Moreover, it appears to be increasing
its track record of introductions of services including MPX*, which is an online information service for wholesale
electric power transactions, and PRaiO, which is an entry sheet priority-level diagnostic service.
*	On August 4, 2022, the Company announced it had performed a business split of the MPX business and made it a separate
company.

In the results by segment, in Think Tank & Consulting Services, net sales increased 21.1% YoY to ¥40,848mn, operating profit rose 21.9% to ¥5,359mn, and ordinary profit grew 25.6% to ¥6,212mn. In IT Services, net sales increased
8.9% to 50,824mn, operating profit rose 77.2% to ¥3,978mn, and ordinary profit grew 74.5% to ¥4,220mn. In Think
Tank & Consulting Services, large-scale DX-related projects for government ministries and agencies, such as for thelatest ICT, contributed and sales and profits increased. In IT Services, the growth of sales to the finance and credit
cards fields contributed. Alongside the growth of net sales, the operating profit margin also increased by 3.0pp YoY
to as high as 7.8%, and the Company’s ability to generate profits has increased.
The Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020) from the start of FY9/22, and as a result, net sales increased ¥2,981mn, operating profit, ordinary profit andprofit before income taxes, each increased ¥952mn, and profit attributable to owners of parent increased ¥522mn.
The results when excluding the effects of this change of accounting standard were that net sales increased 10.3%
YoY to ¥88,691mn, operating profit rose 26.2% to ¥8,383mn, ordinary profit grew 28.7% to ¥9,478mn, and profit
attributable to owners of parent increased 44.6% to ¥7,297mn. So under the former standard as well, each of net
sales, operating profit, ordinary profit achieved record-high results for a 3Q.

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12 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Results trends

As described in the Company’s securities report, in relation to the fiscal years of its main customers of government
ministries and agencies and private-sector companies, in a typical year many projects are completed in the period
in March and April, so in particular there is a tendency for the operating rate to increase in the 2Q. Following thechange to the accounting standard, the tendency for results to be concentrated in the 1H has further strengthened
and it is necessary to be aware of the seasonal factors that cause results to fluctuate.
Cumulative Results for FY 9/22 3Q(¥mn)
FY9/21 3Q
Results

FY9/22 3Q

vs. net sales

Results

vs. net sales

YoY

80,402-

91,673-

14.0%

Think Tank & Consulting Services

33,73542.0%

40,848

44.6%

21.1%

IT Services

46,66758.0%

50,824

55.4%

8.9%

Cost of sales

61,41576.4%

69,422

75.7%

13.0%

SG&A expenses

12,345

15.4%

12,914

14.1%

4.6%

Operating profit

6,641

8.3%

9,335

10.2%

40.6%

Ordinary profit

Net sales

7,364

9.2%

10,430

11.4%

41.6%

Think Tank & Consulting Services

4,944

14.7%

6,212

15.2%

25.6%

IT Services

2,419

5.2%

4,220

8.3%

74.5%

5,046

6.3%

7,819

8.5%

54.9%

Profit attributable to owners of parent

Note: Adopted the Accounting Standard for Revenue Recognition, etc., from FY9/22. The comparison of results with those of theprevious year are shown as reference values.
Source: Prepared by FISCO from the Company’s financial results

Has deep shareholders’ equity due to the accumulation of retained
earnings. Both the current ratio and non-current ratio are excellent
and long-term and short-term liquidity are sound
2. Financial condition and business indicators
Looking at the financial condition in FY9/22 3Q, total assets increased ¥12,346mn on the end of the previous period
to ¥112,051mn. The main change factors were that in current assets, cash and deposits increased ¥13,116mn due
to seasonal factors and notes and accounts receivable - trade, and contract assets increased ¥9,763mn becauseof the adoption of the Accounting Standard for Revenue Recognition, but inventories decreased ¥9,405mn. In
non-current assets, investment securities decreased ¥498mn following the sale of investment securities, while
deferred tax assets declined ¥242mn.
Total liabilities increased ¥5,130mn on the end of the previous period to ¥40,998mn. In non-current liabilities,
long-term borrowing decreased ¥300mn and lease liabilities declined ¥650mn, but in current liabilities, there wereincreases of accounts receivable of ¥2,017mn, accrued expenses of ¥3,291mn, and unpaid corporate tax, etc., of¥1,859mn. Total net assets increased ¥7,216mn on the end of the previous period to ¥71,053mn. Retained earnings
rose ¥7,084mn, mainly due to the recording of profit attributable to owners of parent.
Looking at the financial indicators, the equity ratio is higher than 50% while the current ratio is 271.5% and thenon-current ratio is 62.0%, so it seems there are no problems with liquidity on hand in either the short or long term.
From this, it can be said that the Company’s financial condition is excellent.

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13 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Results trends

Consolidated balance sheet and key financial indicators(¥mn)
FY9/21

FY9/22 3Q

Change59,142

72,938

13,79629,39742,514

13,116

Non-current assets

40,561

39,113-1,448

Total liabilities

35,86740,9985,130

Current liabilities

20,61826,861

6,243

Non-current liabilities

15,24914,136-1,113

63,836

71,053

7,216

43,74950,833

7,084

99,704

112,051

12,346

Current assets
Cash and deposits

Total net assets
Retained earnings
Total assets<Key financial indicators>
Equity ratio

56.4%

56.3%

-0.1ptCurrent ratio

286.8%

271.5%-15.3pt

Non-current ratio

77.1%

62.0%

-15.1pt

Source: Prepared by FISCO from the Company’s financial results■ OutlookHas upwardly revised the FY9/22 results forecasts. Will conduct
upfront investment from FY9/22 2H to FY9/23
Together with the announcement of the FY9/22 3Q results, on August 1, 2022, the Company announced the
upwardly revised forecasts for the FY9/22 consolidated results. Continuing on from FY9/22 2Q, it upwardly revised
them for the second successive quarter. It is forecasting higher sales and profits, with net sales to increase 13.6%
YoY to ¥117,000mn, operating profit to rise 34.2% to ¥9,200mn, ordinary profit to grow 37.4% to ¥10,400mn, andprofit attributable to owners of parent to increase 49.7% to ¥7,500mn. Based on the excellent results up to FY9/22
3Q, it has upwardly revised the initial forecasts by ¥4,000mn for net sales, by ¥2,000mn for operating profit, by¥2,200mn for ordinary profit, and by ¥2,000mn for profit attributable to owners of parent. By segment, for Think
Tank & Consulting Services, the forecasts are for net sales to increase 18.9% YoY to ¥48,000mn and ordinary profit
to grow 23.9% to ¥5,200mn, and for IT Services, for net sales to increase 10.1% to ¥69,000mn and ordinary profit
to rise 54.7% to ¥5,200mn. Based on the basic policies set in the Medium-Term Management Plan 2023, of “VCP
management,” “consolidated management,” and “new normal management,” it expects to achieve the ordinary profit
target in the Medium-Term Management Plan 2023 one year ahead of schedule based on the continuing excellent
performances of the businesses for government ministries and agencies and for the finance and credit cards fields.
In conjunction with this, the Company’s policy for the period from FY9/22 2H to FY9/23 is to allocate the cash
generated by the businesses to growth investment. Specifically, it has set four fields as the priority investment areas,of “Human resources investment,” “Research & Recommendations investment,” “R&D investment,” and “Business
Foundation investment,” and in particular, it has set “Human resources investment” as the most important field andwill conduct upfront investment for it. Through this, it will establish a foundation on which to even more strongly
progress the Medium-Term Management Plan 2023, while it also plans collaborations with venture companies andothers in order to strengthen in the DX and Societal Implementation areas.

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14 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Outlook

On considering that ¥114,712mn, which is the total of the order backlog of ¥23,038mn for FY9/22 3Q and thatwill become sales in FY9/22 and the 3Q cumulative net sales of ¥91,673mn, is 98% of the full fiscal year net sales
forecast (progress rate, 98%), at FISCO we think the Company is highly likely to achieve its results forecasts. If
the businesses for private-sector companies and government ministries and agencies perform strongly, it seems
probable that results will further exceed the forecasts.
Consolidated outlook for FY9/22(¥mn)
FY9/21Results

FY9/22

YoY

Previous
forecast

Revisedforecast

ChangeRate (%)

103,030

113,000

117,000

13,969

13.6%

Operating profit

6,853

7,200

9,200

2,346

34.2%

Ordinary profit

7,568

8,200

10,400

2,831

37.4%

Profit attributable to owners of parent

5,009

5,500

7,500

2,490

49.7%

Earnings per share (¥)

308.60339.26394.1485.54‐

Net sales

Note: the revised values are those announced on August 1, 2022
Source: Prepared by FISCO from the Company’s financial results and financial results briefing materials

The Company’s approach to growth investment

Source: The Company’s business briefing materials

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15 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html■ Medium- to long-term growth strategy
Based on VCP management and consolidated management, isfocusing on strengthening the Societal Implementation function. Is
progressing the DX business and subscription-based business andintends to convert them both in terms of quantity and quality
1. Summary of the Medium-Term Management Plan
In the Medium-Term Management Plan 2023 (FY9/21 to FY9/23) announced in November 2020, the Mitsubishi
Research Institute Group has set “VCP management,” “consolidated management,” and “new normal management,”
as its three basic policies, and it is aiming to build the foundation on which to become sustainable growth companies
by strengthening the A: Research & Recommendations and D: Societal Implementation functions and creating andgrowing new businesses, including the DX business. Based on this, the specific financial targets for FY9/23 include
ordinary profit of ¥10bn (CAGR of 12%) and Return on Equity (ROE) of 10% (as previously explained, it expects toachieve the ordinary profit target in FY9/22 ahead of schedule).
For “VCP management,” which is one of the basic policies, the Mitsubishi Research Institute Group’s value chain
is defined as A: Research & Recommendations, B: Analysis & Conceptualization, C: Design & Testing, and D:Societal Implementation. With the starting point being the societal issues that exist within the world, it is aiming toresolve these issues and increase business opportunities by developing business activities with an awareness of theconnections between each of the functions, such as conducting highly realistic A: Research & Recommendations
with an awareness up to D: Societal Implementation. It is also aiming to have reforms take root in society by being
actively involved up to D: Societal Implementation. It has set healthcare, human resources, cities and mobility, energy,
information communication, food and agriculture, recycling, and resilience as the priority fields. For example in theenergy field, it is involved from Research & Recommendations for the energy policies that should be taken in the
future through to the management of a mega-solar business, and it is implementing VCP management provided as
one-stop, integrated management from A through to D. By progressing VCP management that is focused on thesepriority fields, it is thought that the Company is aiming to maximize the three values of social value (resolving societal
issues), non-financial value (the sustainable growth of people and organizations), and financial value (businessgrowth).
“Consolidated management” is important to further enhance the effectiveness of “VCP management” by strengthening the D: Societal Implementation function. The Company will progress it even more through collaborations
with DCS, JBS, and INES, which are the core companies in the Group, targeting the horizontal utilization of Groupassets. For new business creation, such as the DX business, it is not limiting itself to collaborations with Group
companies and is actively exploring and progressing collaborations with non-Group companies, including researchfacilities and venture companies.
“New normal management” refers to the Company’s acceleration of work style reforms with an eye to the majorchanges taking place in society. It expresses the intention of the Mitsubishi Research Institute Group to be a pioneer
in conducting reforms in the post COVID-19 society. Through it, it is realizing an optimized work-life balance for
employees and a maximized business performance. In addition, it is aiming to connect the findings it obtains
through pioneering these reforms to VCP management’s Research & Recommendations and Societal Implementation
functions, and thereby to create new business opportunities.

We encourage readers to review our complete legal statement on “Disclaimer” page.

16 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Medium- to long-term growth strategy

Based on these three basic policies, the Mitsubishi Research Institute Group has also formulated Five Transformation
strategies of “Growth Businesses Transformation,” “Core Businesses Transformation,” “Think Tank Function
Transformation,” “Human Resources and Organizational Culture Transformation,” and “Management Systems
Transformation,” and it is incorporating them into specific activities.
2. The paths taken for the five transformations(1) Growth Business Transformation
Toward the sustainable growth of the Mitsubishi Research Institute Group, the Company has set the “DX business,” “Subscription-based business,” and the “Global business” as the growth businesses. Focused on thesebusinesses, it intends to build a new earnings foundation and to convert its business model and business portfolio.
In the DX business, it has set “DX journey,” “new normal,” “data-driven management,” and “local government
DX” as the priority themes. Centered on the Digital Transformation Unit that was newly established within the
Company in October 2020, it is accelerating collaborations with DCS, JBS, INES and working to strengthen the
DX business. According to the Company’s business briefing materials, the DX business’ consolidated net sales
were approximately ¥27bn in FY9/20, which was before the start of the Medium-Term Management Plan 2023,
but are forecast to increase by ¥5bn to around ¥32bn in FY9/22, which would be a sales share of slightly lessthan 30%. The Mitsubishi Research Institute Group is aiming to increase the DX business’ share of consolidated
net sales to more than 50% in the medium- to long-term, including from non-organic business expansion.
For the subscription-based business, the intention is to utilize the Mitsubishi Research Institute Group’s expertiseand intellectual assets to efficiently and continuously increase stable earnings. Specifically, it is working on two
types of subscription-based business, implementing solutions to societal issues through providing ICT solutions,and provides services to solve societal issues. It has already market launched many services, including MPX, which
is an online information service for wholesale electric power transactions; Region Ring, which is a regional problem
solutions-orientated digital regional currency; email de health yell, which supports health management; PRaiO,
which is an entry sheets priority-level diagnosis service; the crexta talent management service; the JOBMINEs
job matching system; the HACCP navi food sanitation management service; the PROSRV personnel salary BPO
service; and the miraicompass Internet applications service. In the future, it plans to expand the scale of theservices it has already launched and to continuously launch new services.
For the Global business, the Company is utilizing the expertise cultivated in Japan as a leading country in resolving
societal issues to conduct business development focused on countries in Asia and the Middle East. In Hanoi,
alongside the aging population, it is currently cultivating problem awareness and promoting an understandingof the usefulness of Japanese-style systems, such as by holding symposiums. In Dubai in the Middle East, it isutilizing its track record and expertise in the environment and energy fields to establish a position of being thegovernment’s problem-solving partner. There remains plenty of room to apply Japan’s experiences to the societal
issues of other countries, and at FISCO, we anticipate that the percentage of total net sales provided by theoverseas business will increase in the future.

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17 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Medium- to long-term growth strategy(2) Core Business Transformation
For the research and consulting business, which is the earnings foundation in order to continuously invest in thegrowth businesses, the Company is aiming to improve quality and productivity in the financial solutions business.
While being aware of the connections up to D: Societal Implementation in VCP management, in the research andconsulting business it is conducting active business development and project formation for government ministries
and agencies, local governments, and private-sector companies in the priority fields, which include healthcare,energy, cities and mobility, human resources, information communication, and food and agriculture. In the financial
solutions business, while deepening collaborations with Group companies and partner companies, the plan is to
grow results through the multifaceted utilization of the data held by financial institutions to create new businesses,
including the DX business.
(3) Think Tank Function transformation
The starting point of VCP management is strengthening the A: Research & Recommendations function, which isthe foundation of the Mitsubishi Research Institute Group’s value creation process, through reforming the think tankbusiness. For example, on the Company website, it has created a page entitled “Novel coronavirus (COVID-19)
crisis countermeasures: analysis and recommendations,” and it is continuously disseminating information froma medium- to long-term perspective in a wide range of fields, from economics through to carbon neutrality. It
is also aiming to strengthen its Research & Recommendations capabilities, including by developing the humanresources who will undertake the Research & Recommendations function and coordinating with its network of
non-Group companies.
Furthermore, based on the awareness that AI will bring about destructive creation in the think tank business in the
future, the Company is progressing think tank DX internally with an eye to future business development, and it isactively promoting the utilization of ICT and AI in its think tank business processes. It is independently guiding thiscreation and destruction in the think tank business and starting to provide to external customers the experienceand expertise it has acquired from this*.
*	On June 30, 2021, the Company announced that it had started a service for the total support of “Implementing DX forplanning work.”(4) Human Resources and Organizational Culture Transformation
In order to secure and to develop the human resources who are the foundation of the value the Mitsubishi
Research Institute Group provides, the Company is progressing Human Resources and Organizational Culture
Transformation, including work style reforms. In its human resources strategy, it is strengthening the recruitmentof both new graduates and mid-career hires to build a human resources portfolio suitable for VCP management
and consolidated management. It is also aiming to attract and to retain excellent human resources by formulatinga human resources system and human resources develop plan with an awareness of diversity and specialisms.
For work style reforms, the Company is preparing an optimized working environment that combines the real andthe remote. For its organizational culture, it is working to permeate throughout the Group companies its new
Guiding Principles and Code of Conduct to form a culture in which employees take on the challenge of reforms.

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18 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html

Medium- to long-term growth strategy(5) Management Systems Transformation
This transformation is aimed at realizing the Mitsubishi Research Institute Group’s sustainable growth and improved
enterprise value in the medium- to long-term. Specifically, in management meetings, the Company is further
enhancing the review and management system, including the various in-house committees that consult on
important matters. For consolidated management as well, it is strengthening the comprehensive risk management
structure and building a mechanism that can quickly and responsively deal with risks, such as those associatedwith new businesses. Moreover, for the infrastructure system that support business activities, it is preparing
infrastructure that is highly robust and implementing both offensive and defensive measures.
As previously stated, the results of the Medium-Term Management Plan 2023 are expressed specifically in numerical results. The growth investment in the four priority fields that are being strengthened through progressing the
Medium-Term Management Plan 2023 (“human resources,” “Research & Recommendations,” “R&D investment,”
and “business infrastructure”) is expected to further contribute to the progress made and the results growth.
Conceptual diagram of the Medium-Term Management Plan 2023

Source: Mitsubishi Research Institute Group Report 2021

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19 20

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Mitsubishi Research Institute, Inc.

20-Sept.-2022

3636 Tokyo Stock Exchange Prime Market

https://ir.mri.co.jp/en/index.html■ Shareholder return policy
Dividend policy prioritizes stable dividends. Alongside the expansionof business scale, is forecasting a higher dividend for the 10thconsecutive period.
The Company’s basic policy for shareholder returns is to stably pay dividends. It does not announce specific targets,
such as for the dividend payout ratio, but it has formulated a dividend policy, that “Based on continuously paying
stably dividends, we will work to raise-up the dividend level while comprehensively considering results, maintaining
a balance with financial soundness, and other factors.”
For the FY9/22 dividend, at the time the Company announced the 1H results, it upwardly revised the period-end
dividend forecast ¥5 and the full fiscal year dividend forecast ¥125. Results will grow due to the measures in theMedium-Term Management Plan 2023, and in this situation, it seems it will continue to pay a dividend in accordancewith the previously stated dividend policy. If the Company pays a dividend in FY9/22 as it has forecasted, it
will increase the ordinary dividend for the 10th consecutive period since FY9/13 (excluding the 50th anniversarycommemorative dividend (¥30) in FY9/20).
In the Medium-Term Management Plan 2023, the Mitsubishi Research Institute Group is aiming to convert to becomecompanies realizing sustainable growth. At FISCO, we anticipate that it is highly likely to increase the dividend in themedium- to long-term alongside this results growth.

Dividend per share and dividend payout ratio
Commemorative dividend (left)
Dividend per share (left)
Consolidated dividend payout ratio (right)

(¥)
150
40.6%

42.9%

30
(50th anniversary)

120

50.0%

135

37.3%

40.0%
31.7%

90

30.0%
30.9%

60
85

95

105

115

125

30

20.0%

10.0%

0

0.0%
FY9/18FY9/19FY9/20FY9/21

FY9/22 E

Source: Prepared by FISCO from the Company’s news releases and financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

20 20

Disclaimer
FISCO Ltd. (“FISCO”) offer stock price and index information for use under the approval of theTokyo Stock Exchange, the Osaka Stock Exchange and Nikkei Inc.
This report is provided solely for the purpose of offering information, and is not a solicitationof investment nor any other act or action.
FISCO prepared and published this report based on information which it considered reliable;
however, FISCO does not warrant the accuracy, completeness, fitness nor reliability of thecontents of this report or the said information.
The issuers’ securities, currencies, commodities, securities and other financial instruments
mentioned in this report may increase or decrease in value or lose their value due to influence
from corporate activities, economic policies, world affairs and other factors. This report does
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