Mitsubishi Heavy Industries : MHI Report 2022 (A4/9.4 MB)

MHI REPORT 2022

MITSUBISHI HEAVY INDUSTRIES GROUP

INTEGRATED REPORT

For the Year Ended March 31, 2022

Progressing Along with Society

Contents

Overview

Our Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 roup ro le . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Messages from Management

A Message from the President & CEO. . . . . . . . . . . . . . . . . . . . . . . . . 10 A Message from the CFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Mission Net Zero

A Conversation with the CTO: MHI Group is making important contributions toward realizing Carbon Neutrality . . . . . . . . . . . . . . 24

Special Feature:	MHI Group's Carbon
	Neutrality Initiatives . . . . . . . . . .	30
Contribution:	Carbon Neutrality and
	Corporate Value
	-MHI Group's Initiatives
	and Contributions- . . . . . . . . . . .	41
Business Strategy
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	44
Energy Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	46
Plants & Infrastructure Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	48
Logistics, Thermal & Drive Systems . . . . . . . . . . . . . . . . . . . . . . . . . .	50
Aircraft, Defense & Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	52
Governance & Sustainability
Introducing Members of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	54
A Conversation with the Chairman and
Two Outside Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	58
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	64
Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	74
Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	78
Cybersecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	79
Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	80
Responses to Risks and Opportunities Caused by Climate Change
(Disclosure in Accordance with
TCFD Recommendations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	86
Building HR Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	88

Performance Data

Financial and Non-FinancialHighlights . . . . . . . . . . . . . . . . . . . . . . 92

Eleven-Year Financial and Non-Financial Data . . . . . . . . . . . . . . 94

Consolidated Financial Statements [IFRS] . . . . . . . . . . . . . . . . . . . 96

Corporate Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

Status of IR Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

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Purpose of Publishing This Report

Mitsubishi Heavy Industries (MHI) Group aims to achieve growth by contributing to the development of society by responding to current and future issues and needs with a variety of technologies, based on our corporate philosophy set forth in Our Principles.

In order to help shareholders, investors, and other stakeholders better understand our philosophy, we have published

this eport as an integrated report that provides financial information, including management strategies and operating performance, as well as non-financial information such as management resources, corporate governance, risk management that support our strategies and performance, and the roup s environmental and social activities since fiscal year ended March 2014 (FY2013).

Reference Guidelines

Value Reporting Foundation (VRF): International Integrated Reporting Framework

Global Reporting Initiative: Sustainability Reporting Standards

Ministry of Economy, Trade and Industry of Japan: The Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation

Ministry of the Environment of Japan: Environmental Reporting Guidelines (2018 version)

Structure of Information Disclosure

MHI Report contains information that is important to understanding MHI.

More detailed information is available on our website.

https www.mhi.com finance

Financial Information

Non-Financial Information

Important

MHI REPORT

		MHI		Website		ESG DATABOOK		Website
		FINANCIAL REPORT		"INVESTORS"			"SUSTAINABILITY"
		https://www.mhi.com/		https://www.mhi.com/		https://www.mhi.com/		https://www.mhi.com/
Detailed
finance library annual		finance		sustainability library		sustainability
(Exhaustive)

Forward-Looking Statements

Forecasts regarding future performance in these materials are based on judgments made in accordance with information available at the time this report was prepared. As such, these projections involve risks and uncertainties. Also, the results projected here should not be construed in any way as being guaranteed by the Company. For this reason, investors are recommended not to depend solely on these projections for making investment decisions.

It is possible that actual results may change significantly from these projections for a number of factors. Such factors include, but are not limited to, economic trends affecting the Company's operating environment, currency movement of the yen value to the U.S. dollar and other foreign currencies, and trends of stock markets in Japan.

MITSUBISHI HEAVY INDUSTRIES GROUP

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Overviewverview

Our Principles

Since our foundation, we have consistently striven together with stakeholders to contribute to the development of society through the pioneering monozukuri-the traditional Japanese concept of craftsmanship.

1. We deliver reliable and innovative solutions that make a lasting differen e to ustomers and ommunities worldwide.
2. We act with integrity and fairness, always respecting others.
3. We constantly strive for excellence in our operations and technology, building on a wide global outlook and deep local insights.

MHI Group traces its roots back to 1884, when founder Yataro Iwasaki launched a full-scale shipbuilding business in Nagasaki. Over the more than 130 years since then, we have strived together with our customers, shareholders and other stakeholders to take on the challenges of creating new "monozukuri" ahead of the times. MHI Group has achieved its growth by contributing to the development of society through providing products and services that support people's lives. Our Principles, formulated on the basis of the Three Principles of Mitsubishi Group, are: "We deliver reliable and innovative solutions that make a lasting di erence to customers and communities world- wide," "We act with integrity and fairness, always respecting others," and "We constantly strive for excellence in our operations and technology, building on a wide global outlook and deep local insights," and we have consistently adopted Our Principles as immutable philosophy.

Today, as a global leader in monozukuri and engineer- ing, MHI Group utilizes its advanced technology to provide integrated solutions in a wide range of fields, from infrastructure such as shipbuilding, transportation systems, commercial aircraft, and power systems, to space sys- tems. Our activities have also expanded worldwide. MHI Group aims to contribute to progress of society more broadly by solving complex global issues, such as rapid urbanization in emerging countries, infrastructure upgrades in developed countries and environmental issues including climate change.

ataro wasaki,

s first president

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Purpose of Our Principles

June 1, 1970

The origins of MHI extend far back to 1870, and the fact that we are here today is the fruit of the untiring

• orts of our founder, ataro wasaki, as well as successive generations of management and employees.
  Lessons learned from these predecessors remain engraved in our minds to this day, and, recalling them, we have resolved to establish Our Principles suitable to MHI with its rich tradition in preparation for further leap forward into the future.

The wording of Our Principles is directly based on the idea of the Three Principles of Koyata Iwasaki, the fourth president: corporate responsibility to society, integrity and fairness, and global understanding through business. Our Principles are a concise expression of the Three Principles from the three perspectives: the basic stance of the Company, the mindset of our employees, and the future direction to which the Company should aspire. On this occasion as we marked 100th anniversary of our foundation, and at the start of the turbulent 1970s, we aim to continue moving forward with motivation in response to the changing times. This is the purpose for the establishment of Our Principles which incorporate new sense.

Nagasaki Shipyard & Machinery Works in 1885

Overview

Management from Messages

Zero Net Mission

Data Performance Sustainability & GovernanceStrategy Business

MITSUBISHI HEAVY INDUSTRIES GROUP

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