Energy and Environment Business Plan

Energy & Environment
Business Plan
Senior Executive Vice President, President and CEO,
Atsushi MAEKAWA
6.8.2015
© 2015 MITSUBISHI
© 2015 MITSUBISHI HEAVY INDUSTRIES,
HEAVY INDUSTRIES, LTD. Reserved.
LTD. All Rights All Rights Reserved.
Table of Contents
1. Business Overview
2. Review of 2012 Medium-Term
Business Plan
3. 2015 Medium-Term Business Plan
4. Summary
© 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved.
1
1. Business Overview
1-1． Business of Energy & Environment Domain

1-2． Business Structure

2 2
1-1. Business of Energy & Environment Domain
Mitsubishi Hitachi Nuclear Energy Chemical Plant &
Power Systems, LTD. Systems Division Infrastructure Division
Energy & Environment Domain
Renewable Energy Marine Machinery & Engine

Business Division
Cross- Distributed Ｏｉｌ＆Ｇａｓ

domain power systems business

3
1-2. Business Structure
Mitsubishi Hitachi President and CEO,
Power Systems, Ltd. ＭＨＰＳＰＷＰＳ
【Thermal Power Takato
Generation Systems】ＰＷＰＳ
Nishizawa
President and CEO, President and CEO
Energy & Environment Senior General ＰｅｔｅｒＣｈｒｉｓｔｍａｎ
Manager, Nuclear
Atsushi Nuclear Energy Energy Systems
Division Ｔｕｒｂｏｄｅｎ
Maekawa Systems Division Ei Kadokami
（Senior Executive （Executive Vice Ｔｕｒｂｏｄｅｎ
Vice President） President） President and CEO
Senior General ＰａｏｌｏＢｅｒｔｕｚｚｉ
Chemical Plant Manager, Chemical
Plant & Infrastructure
& Infrastructure Division
Division 《Cross-domain》
【Company-wide EPC Yoichiro Ban
Support Functions】（Senior Vice Distributed power systems
President）
Senior General
Manager, Domain
Renewable Energy Renewable Energy
Executive Vice President
Business Division
Business Division Koji Hiramoto
Ichiro
Matsuura Ｏｉｌ＆Ｇａｓ
Mitsubishi Heavy President &CEO,
Domain
Industries Marine Mitsubishi Heavy
General Manager
Industries Marine
Machinery & Engine Machinery & Engine Co.,
Mitsuhiko kawai
Ltd.
Co., Ltd
【Marine Machinery & Engine】 Kazuo Soma
© 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 4

2. Review of 2012 Medium-Term Business Plan
2-1． Targets and Results

2-2． Overall Level of Achievement
2-3． Percentages of Total Company Orders, Sales, Profits
2-4． Management Status for Each Business Position

2-1. Targets and Results
Thanks to implementation of various reforms, including domain
system and M&A synergies, targets were almost all achieved.
Orders ’2014
received
Target
Revised
(in billion yen)
1,350.0 1,330.0 1,339.2 1,850.0 1,740.0 1,923.6
Target Actual
937.6
○Increases in orders received and net sales

2012 2013 ’2014
2014 ・Orders received for large-scale
thermal and chemical plants, etc.
Net Target
Revised ・Merits from integration with Hitachi
in thermal power systems business
sales 1,700.0
1,460.0 1,599.5
1,130.0 1,042.1 1,200.0 1,253.9
○Improvement in operating profit margin
・Growth in after-sale servicing business
・Improvement in profitability of
2012 2013 2014 chemical plants
Operating ’2014
・Downsizing and withdrawal from
unprofitable operations
income Target 150.0 162.6
90.0 100.0 112.3 Revised （10.2％）
80.0 145.0
（10.2％）
（8.3％）（9.0％）
（7.1％）（8.6％）
2012 2013 2014

Launch of Energy & Environment domain
2-2. Overall Level of Achievement
Growth preparations were completed.
Ready to shift to new full-fledged growth and aggressive approach phase.
FY2012 FY2014
Expansion of Orders Received 937.6 → 1,923.6 billion yen （×2.1-fold）
business scale Operating income 90.0 → 162.6 billion yen （×1.8-fold）
Strength and synergy Acceleration of Portfolio management

benefits from domain globalization employing strategic
system and M&A's business evaluations
• Exchanges of human resources, administrative • Preparation of overseas bases
consolidation and efficiency enhancement • Withdrawal from production of
• Establishment of JV with
• Integration with Hitachi in thermal power lithium batteries
systems (MHPS) Vestas in offshore wind turbines • Cash flow creation from strategic
• Acquisition of PWPS and Turboden business evaluation system
(expansion of small/medium-size gas turbine
lineup)
2015 Business Plan: Taking Up New Challenges

2-3. Percentages of Total Company Orders, Sales, Profits
FY2014 Actual
(in billion yen)
54.1 59.4 △2.7

(1%) (△1%)
(2%)
1,304.6 1,319.5 1,599.5 84.1 162.6
(28%) Orders 1,923.6 (33%) (40%) (28%) (55%)
received (41%) Net sales Operating
4,699.1 3,992.1 Income

417.4 28.5 296.1
(9%) (10%)
999.2 483.9 23.4
(21%) (12%) 529.5
(13%) (8%)
● Energy & Environment

● Commercial Aviation & Transportation Systems
● Integrated Defense & Space Systems
● Machinery, Equipment & Infrastructure
● Others, Eliminations or Corporate

2-4. Management Status for Each Business Position
Portfolio management targeting enhanced corporate value

Promotion of downsizing and withdrawal from unprofitable businesses
Resource distribution Energy & Environment Businesses Future direction
Sales and Improving

income + investment
Grow/ GTCC growth efficiency Improing the
Maintain level towards
Conventional further growth
・ Improving
SBUs which have
Reform Nuclear Power Plant profitability

moved to the
Grow/Maintain
and efficiency
Chemical Plant position
Environmental Plant SBUs to be

Determining
strategy
improved Accelerating
reform
Downscale/ Lithium-rechargeable
Implementing Promoting
Withdraw battery etc Reducing
various + losses
further
measures measures
New
Offshore wind turbines Implementing
Proactive investment based on
etc scrutiny of strategy
measures for
commercialization

3. 2015 Medium-Term Business Plan
3-1． Basic strategies
3-2． Numerical targets
3-3． Measures for achieving targets
3-4． Short-term earnings and longer-term growth initiatives

3-1. Basic strategies (1/3)

● Energy & Environment
● Commercial Aviation & Transportation Systems
ＦＹ2014 ● Integrated Defense & Space Systems ＦＹ2017
● Machinery, Equipment & Infrastructure
● Others
Main measures and Orders/ Operating
Domain Net sales income
fluctuating factors
Orders Orders
received ・ Expanded synergies at MHPS ◎ ◎ received
4,699.1 5,500.0
Energy & ・ Overall expansion of servicing billion yen
billion yen Environment business ○ ◎
・ Distributed power systems,
oil & gas, etc. ○ -
・ Expansion of
Boeing-related business ◎ ◎
・ MRJ (contribution to net sales
Net Commercial
starting FY2017) ○ △ Net
sales Aviation &
Transportation sales
3,992.1 Systems ・ Strengthening of 5,000.0
billion yen land transportation systems - ○ billion yen
・ Reform of
commercial ship business - ○
Integrated ・ Demand to hold steady through
Defense &
Space
FY2017; preparations for expansion - -
Systems of business in equipment, etc.
・ Synergies at Primetals
Operating
income
(steelmaking business) ◎ ◎ Operating
income
296.1 Machinery, ・ Strengthening of compressors, 450.0
billion yen
Equipment &
Infrastructure
turbochargers, etc. ○ ○ billion yen
・ Accelerated business restructuring

(including M&A’s) ○ ○
MRJ: Mitsubishi Regional Jet
MHPS: Mitsubishi Hitachi Power Systems, Ltd. Primetals: Primetals Technologies, Ltd.
12
2015 Medium-Term Business plan Basic Policies Measures

【2015 Mid-term Plan】【Vision】
Full-fledged growth and aggressive approach phase

Early achievement of Simultaneous pursuit of (A)
business scale exceeding short-term earnings and Thorough
5 trillion yen longer-term growth strengthening of
＜FY2017＞＜FY2017 ＞
competitiveness
Orders ＜ FY2017
received ＞ yen
5.5trillion Orders received 2.3trillion yen
(B)
Sales 5 trillion yen Sales 2.0trillion yen
Realization of
Operating income Operating income synergy merits
450.0 billion yen 240.0 billion yen (domain system,
M&A's)
Backgrounds Aiming to be a group that (C)
takes up bold challenges Expanding into
Sense of crisis • Focus on the customer (quality) new fields as
•Intense global • Speed (achievement of swift
management decisions) way toward
competition • Strong focus on and initiatives to longer-term
reap profits
growth
3-2. Numerical targets
2.2 2.3 Orders received
1.9 2.0 （in trillion yen）
Net sales
1.9 2.0 （in trillion yen）

1.3 240.0 Operating income
1.6 1.6 （12%）
0.9 （in billion yen）
210.0
1.0 1.2 （11%）
185.0
162.6 （11%）
（10.2%）
112.3
90.0 （9.0%）
（8.6%）
2012 2013 2014 2015 2016 2017

2015 Business Plan：
2012 Business Plan Full-fledged growth and aggressive approach phase
PWPS, Start of domain system (Ａ) Thorough strengthening of competitiveness
・Launch of MHPS
Turboden (Ｂ) Realization of synergy merits (domain system, M&A's)
・Establishment of JV in
Acquisition offshore wind turbines
(Ｃ) Expanding into new fields as way toward longer-term growth

3-3. Measures for achieving targets
Simultaneous pursuit of short-term earnings and longer-term growth
① GTCC ① Active exchanges of ① Oil＆Gas
② Conventional (human) resources ② Distributed Power

② Consolidation of bases Business Development
③ Servicing Business
③ Restructuring of group ③ SOFC
④ Environmental Plant
companies; elimination （Solid Oxide Fuel Cell）
⑤ Chemical Plant of overlapping work ④ Offshore Wind Turbines
⑥ Nuclear Power Plant functions
⑤ EMS
（Energy Management
System）
⑥ O＆M

（Ａ） Thorough strengthening of competitiveness
① GTCC
② Conventional
③ Servicing Business
④ Environmental Plant
⑤ Chemical Plant
⑥ Nuclear Power Plant
(A)①GTCC(1/2)
Further strengthening of gas turbine business
1. Development of world’s most efficient gas turbines Demonstration facility
(Takasago Machinery Works)
・ Demonstration facility of world-class size
- Constructed targeting continuous verification of
next-generation gas turbine technologies and
reliability enhancement
・ History of development at Demonstration facility
Output: 330MW
1997 1,500℃-class G-series gas turbines
2010 1,600℃-class J-series gas turbines
1,650℃-class
2020 next-generation gas turbines Output: 518MW
2. Strengthening of small/medium gas turbine business

・ Improve performance of small/medium GTs
by flow-down of large-scale GT technologies
・ Expansion of production lines (to 3, from current 2)
- Response to market expansion in emerging economies, etc.
- Expand sales of H-100 to applications in LNG market H-100
GT: gas turbine LNG: liquefied natural gas
(A)①GTCC(2/2)
Swift response to increased global demand
 Successive orders for J-Series gas turbines
Cumulative orders worldwide: 38 units
 Increased demand due to lower natural gas prices,

expanded product lineups through M&A's
Further sales expansion and
strengthening of order taking capability M-501 J-Series gas turbine
Europe (49units)
Asia (232units) Japan (236units)
3910
193 184
North & South America (128units) Middle East & Africa (174units) 39 52
108 97 77 Takasago, Japan
20 Savannah, USA
Total orders to date: 826 units Oceania (7units) 7

Hitachi, Japan
(including 38 J-Series)
Quantities as of May 31, 2015
18
(A)②Conventional
Further strengthening of conventional plants
 Aggressive development of domestic and overseas markets
・Successive orders for 110MW coal-fired plants
・Orders received for lignite-fired ultra-supercritical projects (Poland, etc.)
・Orders received for 1000MW-class ultra-supercritical project
 Full-scale launch of IGCC plants (540MW at Nakoso, Hirono)
Joban Joint Power Co., Ltd. Nakoso Power Station Unit No.10 Osaki CoolGen Corporation's IGCC demonstration plant
(conceptual rendering)
(within Chugoku Electric Power Co.'s Osaki Power Station)
19
(A)③Servicing Business
Expansion of servicing business applying new, unconventional methods
① Strengthening of service bases (Saudi Arabia, Philippines, Mexico, etc.)
② Focused allocation of human resources into servicing business
③ Expansion of servicing business using new technologies
・Adoption of advanced inspection and maintenance technologies
・Proactive use of IoT and AI Formation of special service zones (e.g. Southeast Asia)
＊IoT：Internet of Things AI ：Artificial Intelligence

◇ Training center to be established in Manila
（in billion yen） ◇ MHPS Philippines to be converted to
◇Expansion in servicing orders
1,000.0 boiler and turbine service base
◇ Introduction of remote monitoring
800.0
700.0
650.0
600.0
Asia 210.0
130.0 170.0
(excluding 80.0 120.0
Japan, China）
2014 2015 2016 2017 2020

(A)④Environmental Plant
Business scale expansion through product and technology synergies
One Stop Solution

（High-performance flue-
gas treatment systems）
Coal-fired boiler SCR GGH EP FGD GGH
 Establishment of new JV with FEIDA of China

(initiative against Chinese soot dust and PM2.5)
 Establishment of new company dealing in electrostatic precipitators
Achievement of full lineup in high-performance flue-gas treatment system components
(SCR, EP, FGD)
＊SCR：Selective Catalyst Reduction GGH：Gas-Gas-Heater EP：Electrostatic Precipitators FGD：Flue Gas Desulfurization

(A)⑤Chemical Plant
Win and increase orders for main product line (fertilizer plant,
methanol plant, etc.) by enhancing their competitiveness
1. Conversion of business model

(i.e. investment, entering new business)
・ Investment in methanol/dimethyl ether
plant for Trinidad & Tobago
2. Win and increase orders in Central Asia Fertilizer complex (ammonia, urea)
・ Fertilizer plant for Turkmenistan
3. Commence business in CO2-EOR * Absorption tower
Production: Around 5,000 t/day Regeneration

tower
(largest EOR in the world) Flue-gas

cooling tower
・ 4,776t/day plant in USA (world's
largest) to commence operations in Flue-gas duct
4th quarter of 2016 Cooling tower

CO2 compressor
* CO2-EOR (enhanced oil recovery) CO2 recovery plant for world's largest EOR
project (USA) (conceptual rendering)
22
(A)⑥ Nuclear Power Plant
・Contributions to restarts and decommissioning
・Expanded global adoption of ATMEA1 as global strategic reactors
1. Contribution to restarts
・Focused allocation of human resources and
technology into restarts
・Contributions in safety improvement measures
2. Promotion of projects in
Turkey and Vietnam ＡＴＭＥＡ1
・Expanded applications of global strategic
reactors ATMEA1
3. Establishment of department to handle
light-water reactor decommissioning
projects
・Provision of new reactor decommissioning
solutions
Remote control robot ＭＨＩ-ＭＥＩＳＴｅＲ

23
（Ｂ） Realization of synergy merits

① Active exchanges of (human) resources
② Consolidation of bases
③ Restructuring of group companies;
elimination of overlapping work functions

(B)①Active exchanges of (human) resources
Active, effective allocation of human resources
in response to market changes
Energy & Environment Other

domain Product domains
technologies,
Nuclear etc. Machinery,
Equipment &
Infrastructure
After-sale Big data Overseas

Overseas EPC
servicing implementation utilization EPC
expertise capability knowhow support
Commercial Aviation &
Transportation Systems
After-sale servicing expertise Strengths in

project
Thermal power management
Chemical plant and EPC
Integrated Defense &
plant Space Systems
EPC capability

(B)②Consolidation of bases
Ａ：Response to market changes
Accelerated
Consolidation
Ｂ：Strengthening of competitiveness by manifesting
of bases superior aspects of each region
Ｃ：Integration of overlapping functions
Ⅰ Ⅱ Ⅲ
Integrated companies Integrated companies
MHI-F (France) established in April 2015
in China region, in America region,
as company integrating European and
Stronger ties between Stronger ties between
African regional operations
MHI-C and MHPS-C ⒶⒸ MHI-A and MHPS-A ⒶⒸ
ⒶⒷⒸ
Image
Regional head quarter
Company A Company B Company C
Ⅳ Ⅴ
Integrated companies Transfer of operations from Kanazawa Plant ⒷⒸ

in Southeast Asia region, ・Small/medium-size steam turbines → Chinese partner company
Stronger ties between MHI-AP and MHPS-AP
ⒶⒸ ・Small/medium-size boilers → MHPS (Philippines)

(B)③ Restructuring of group companies;
elimination of overlapping work functions
・ In tandem with business restructuring, restructuring of group companies
-Approx. 15% reduction in number of group companies(101 in 2014 → 87 in 2017 )
・Elimination of overlapping or superfluous facilities in tandem with M&A's and

business restructuring - Consolidation of functions to higher competitive bases
・Elimination of overlapping corporate functions
【Example of business restructuring】 Consolidation of air quality control systems

Integration of electrostatic precipitator business (October 2015) (AQCS) to MHPS group
６５％３５％ Business GGH
ＭＨＩＨｉｔａｃｈｉ scale SCR Heat recovery EP FGD
GGH
Reheating
（billion yen） system
100％ 100％
ＭＨＰＳ MHPS 67.0 ○ ○ - ○ ○
MHI-MS
(MHI Machinery, Equipment
& Infrastructure）
8.0 - - ○ - -
100％ HPC
(Hitachi group)
7.0 - - ○ - -
MHI-MS HPC
New company
Others Precipitator Precipitator Others MHPS Group ○ ○ ○ ○ ○
*MHI-MS：Mitsubishi Heavy Industries Mechatronics Systems Ltd. *HPC：Hitachi Plant Construction

（Ｃ）Expanding into new fields as way toward longer-term growth
① Oil＆Gas Business Development

② Distributed Power Business Development
③ SOFCs （Solid Oxide Fuel Cell）
④ Offshore wind turbines
⑤ EMS （Energy Management System）
⑥ O＆M(Operation & Maintenance）

(C)①Oil＆Gas （1/2）
Business scale
Expand business scale from approx. 100bn yen to 300bn 300 bn yen
100 bn yen
1. Reasons 2015 2018
・Demand will expand over the long term in tandem with global population increase and economic growth.
・Business is growable through cross-domain collaboration.
・Oil & gas is a field in which a business model suited to MHI can be created.
Gas turbine CO2 recovery plant Ultra-high-pressure LNG carrier 3D sea bottom resource Camera able to “see"
compressor exploration vessel radiation
＊LNG: liquefied natural gas : Commercial Aviation &

: Energy & Environment
Transportation Systems
: Integrated Defense & : Machinery, Equipment &
Space Systems Infrastructure
2. Near-term initiatives
・Promotion of cross-domain activities through establishment of
Oil & Gas Business Development Department (April 2015)
- One-stop service depot enabling swift response to diverse customer needs
- Provision of integrated solutions, etc. fusing multiple product technologies
- Development of new models for collaborating with other companies, and expansion of new business areas

29
(C)①Oil＆Gas （2/2）
 In-depth examination of MHI's superiority/organizational capability

Determination of areas of superiority
 Target : Middle East and Southeast Asia markets
Floating LNG Power Plant Gas turbine

LNG tanks 250MW
Regasification
Engineering capability
(chemical plants, etc.)
LNG carrier Steam turbine

30
(C)② Distributed Power Business Development
Business scale
Expand business scale from approx. 190bn yen to over 300bn
300 bn yen
Customer(s) 190 bn yen
Distributed Power Business Development Department

2013 2018
PWPS MHI TURBODEN MHI MHI MHPS

Aero-GT Reci.Engine ORC ESS Chiller, HP HD-GT
(USA) (Japan) (Italy) (Japan) (Japan) (Japan)
 MHI Distributed Power Sector can supply one stop service.

Proposing
Identifying Engineering
optimum Operation &
Customer’s Procurement
system & Maintenance
requirement Construction
solution
ORC : Organic Rankine Cycle
(C)③SOFC （Solid Oxide Fuel Cell）
１．250kW-class SOFC hybrid
demonstration unit
Order for hybrid power system integrating SOFC stack
with micro gas turbine, from Kyushu University
Target on early realization, in time

for 2020 Tokyo Olympic Games
Inverter
２．Triple combined cycle system Steam turbine（ＳＴ）

Natural gas
Target set on 70% efficiency rating

ＳＯＦＣ
Condenser
①SOFC Gas turbine （ＧＴ）

Combustor
②Gas turbine
③Steam turbine
Air Exhaust gas
SOFC-integrated hybrid power system HRSG (*)
(*) Heat Recovery Steam Generator
generating electricity in 3 stages
＊SOFC（Solid Oxide Fuel Cell）

32
(C)④Offshore wind turbines （1/2）
Expand business scale from approx. 40bn yen to 100bn

Business scale
100 bn yen
40 bn yen
2014 2018
ＭＨＩＶｅｓｔａｓＯｆｆｓｈｏｒｅＷｉｎｄ

JV with Vestas of Denmark in April 2014
【Major recent orders for offshore wind turbines】

・Burbo Bank extension (UK): 32 units
(world's largest output: V164-8.0MW)
・Rampion Project (UK): 116 units (V112-3.45MW)

33
(C)④Offshore wind turbines （2/2）
MHI Vestas V164 blade plant

・ V164 wind turbine blade manufacturing base
・ Location : Isle of Wight, southern England
Isle of Wight

(C)⑤EMS （Energy Management System）
○ Response to needs for high performance (energy savings), advanced load

adjustment capability and heat/power co-generation capability
○ Entry into demand response and ancillary services areas
Verification of demand response effect
Keihanna Eco City, Next-generation
Target: approx. 700 households in Kyoto Pref.
Energy and Social Systems
(Kyotanabe City, Kizugawa City, Seika Town)
Demonstration Project
(Kansai Electric Power, Mitsubishi Electric, MHI)
Results of Keihanna demonstration
Takanohara Area Energy Supply ⇒Consideration of feasibility of multi-service supply business model
Feasibility Study centering on energy (Kansai Electric Power, MHI, Toppan Printing, etc.)
② Load adjustment power supply
① Baseload power supply Demand Response Supply capability
③
Demand control service for
periods of excess demand Ancillary services
GTCC Nuclear Hydroelectric System stabilization through
Fluctuating power supply

② Load adjustment power supply installation of auxiliary power supply:
Coal Geothermal Power ESS (energy storage system), etc.
GTCC、Distributed Power etc.
Demand
ＧＴＣＣ ③ Fluctuating power supply
Gas engine Energy Mix Solar

Solar
Gas turbines converted
from aero engine Wind
Wind
Hydroelectric
Battery
Fuel cell
①Baseload power supply
Coal, GTCC, Nuclear, Hydroelectric, Geothermal, etc.
④ EMS（Energy Management System） Morning Day Evening Night

35
(C)⑥O＆M （Operation & Maintenance）
End-user Power plant MHI operator
Remote
Power plant
monitoring
Now
（MHI・Other
companies） 100%
Operator (power provider)
Power plant Remote

monitoring 90%
Smart meters
●
Future ●
●
Remote
(differentiation ● control Comprehensive
strategy) 10% Dispatch of maintenance management
personnel of system operation
Staff of overseas IPPs, etc. Global O&M Center

36
3-4. Simultaneous pursuit of short-term earnings
and longer-term growth（1/2）
Short-term Longer-term
earnings growth
(A) Thorough strengthening GTCC, Conventional plant,
of competitiveness Servicing business, Environmental plant,
Chemical plant, Nuclear power plant
○ ○
(B) Realization of Exchange of resources, consolidation of bases,
synergy merits
(domain system, M&A's)
restructuring of group companies,
elimination of overlapping
○
(C) Expanding into new fields Oil & Gas, Distributed Power Business Development,
as way toward
longer-term growth
Fuel Cell, Offshore wind turbines, ＥＭＳ, O&M ○
Orders received
(in trillion yen)
Net Sales 2.0

（in trillion yen） 1.9
2.3
2.2 1.6 1.6 240.0
210.0
2.0 Operating income
185.0
1.9 （in billion yen）
162.6
2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020

3-4. Simultaneous pursuit of short-term earnings
and longer-term growth（2/2）
Schedule
Short-term earnings long-term growth
～2014 2015 2016 2017 2018～
1,600℃-class GT Development of 1,650℃-class next-generation GT Response to increased global demand
large size
1. GTCC
Flow-down of large-scale GT technologies; synergies Response to market expansion in newly emerging economies, etc.
mid / small size
Response to domestic market Domestic market focus
⇒Expansion of overseas development
Aggressive development of overseas markets
2. Conventional
lignite-fired/1000MW-class ultra-supercritical pressurized reactors)
Delivery of Osaki CoolGen Commencement of IGCC operations at Nakoso and Hirono
LTSA (long-term service agreement) expansion
3. Servicing Business Proactive development of new strengths (technologies)
Application of advanced inspection/maintenance technologies, IoT, AI
（A）
Thorough JV with FEIDA (Mar 2015) Aggressive development of high-performance flue-gas Response to expanding markets for PM2.5 solutions, etc.
strengthening of 4. Environmenal Plant treatment systems
New Company of EP (Oct 2015)
competitiveness
Methanol/dimethyl ether plant for Trinidad & Tobago
Turkmenistan fertilizer plant Successive orders for subsequent plants
5. Chemical Plant
World's largest (4,776t/day) CO2-EOR plant, for USA
100th anniversary for

Support of restarts
foundation of Turkey (2023)
6. Nuclear
Global strategic Nuclear power plant projects in Turkey and Vietnam Promotion of global strategic reactors
Power
reactor ATMEA1
Plant Establishment of Light-water Reactor Decommissioning Project Dept. (July 2015)
Decommissioning Response to decommissioning market
measures
1. Active exchanges of Establishment of MHIF and MHPSC (April 2015)
（B)
(human)resources Transfer of operations from Kanazawa Plant
Realization
2. Consolidation of bases
of synergy merits
3. Restructuring of group companies:
Consolidation of EP business (Octber 2015)
(domain system,
elimination of overlapping work
M&A's)
functions Number of group companies 101 ⇒ 87
1. Ｏｉｌ＆Ｇａｓ Establishment of Oil & Gas Business Development Dept. (April 2015) Tokyo Olympics, Palalympics (2020)
（C) 2. Distributed Power Business Sales expansion in new fields Full-scale entry into new fields
Expanding into Development
new fields as Establishment of Distributed Power Supply Business Promotion Dept. (July 2014)
3. ＳＯＦＣ
way toward Establishment of MHI Vestas Offshore Wind (April 2014)
longer-term 4. Offshore wind turbines
growth 5. ＥＭＳ Deregulation of power industry Comprehensive energy management
6. Ｏ＆Ｍ

4. Summary
Pledges as CEO of the Energy & Environment domain

4. Summary
Pledges as CEO of the Energy & Environment domain
2015 Business Plan
 Entry into full-scale growth and aggressive approach phase

Vigorous implementation of all measures
Transition to a group that boldly takes up challenges
 Customer-focused, speedy (faster management

decisions), focus on realizing profits, bold challenger
 Simultaneous pursuit of short-term earnings and
longer-term growth
(business expansion and profitability at the core of
Energy & Environment domain)
Forecasts regarding future performance in these materials are based on judgment made in accordance with
information available at the time this presentation was prepared. As such, those projections involve risks and
insecurity. For this reason, investors are recommended not to depend solely on these projections for making
investment decision. 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. Also, the results projected here should not be construed in any way as being guaranteed
by the company.

41

Energy and Environment Business Plan

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Energy and Environment Business Plan

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Energy & Environment

2. Review of 2012 Medium-Term

3. 2015 Medium-Term Business Plan

1-1． Business of Energy & Environment Domain

© 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved.

Renewable Energy Marine Machinery & Engine

Cross- Distributed Ｏｉｌ＆Ｇａｓ

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2-1． Targets and Results

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○Increases in orders received and net sales

2012 2013 2014

Strength and synergy Acceleration of Portfolio management

2015 Business Plan: Taking Up New Challenges

54.1 59.4 △2.7

4,699.1 3,992.1 Income

● Energy & Environment

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Portfolio management targeting enhanced corporate value

Sales and Improving

Reform Nuclear Power Plant profitability

Environmental Plant SBUs to be

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・ Accelerated business restructuring

2015 Medium-Term Business plan Basic Policies Measures

Full-fledged growth and aggressive approach phase

1.9 2.0 （in trillion yen）

2012 2013 2014 2015 2016 2017

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① GTCC ① Active exchanges of ① Oil＆Gas

② Conventional (human) resources ② Distributed Power

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（Ａ） Thorough strengthening of competitiveness

2010 1,600℃-class J-series gas turbines

2. Strengthening of small/medium gas turbine business

 Increased demand due to lower natural gas prices,

Total orders to date: 826 units Oceania (7units) 7

＊IoT：Internet of Things AI ：Artificial Intelligence

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One Stop Solution

Coal-fired boiler SCR GGH EP FGD GGH

 Establishment of new JV with FEIDA of China

＊SCR：Selective Catalyst Reduction GGH：Gas-Gas-Heater EP：Electrostatic Precipitators FGD：Flue Gas Desulfurization

© 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 21

1. Conversion of business model

Production: Around 5,000 t/day Regeneration

(largest EOR in the world) Flue-gas

4th quarter of 2016 Cooling tower

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（Ｂ） Realization of synergy merits

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Energy & Environment Other

After-sale Big data Overseas

After-sale servicing expertise Strengths in

plant Space Systems

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Company A Company B Company C

Integrated companies Transfer of operations from Kanazawa Plant ⒷⒸ

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・Elimination of overlapping or superfluous facilities in tandem with M&A's and

・Elimination of overlapping corporate functions

MHI-MS：Mitsubishi Heavy Industries Mechatronics Systems Ltd. HPC：Hitachi Plant Construction

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