Machinery, Equipment & Infrastructure Business Plan

1 Machinery, Equipment &. Infrastructure Business Plan Executive Vice President, President and CEO, Machinery, Equipment & Infrastructure Kazuaki KIMURA. 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. Table of Contents 1. Business Overview 2. Review of 2012 Medium-Term Business Plan 3. 2015 Medium-Term Business Plan 4. Domain Policy 5. Business Strategies 6. Summary 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 1. 1. Business Overview 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 2 2. 1-1. Domain Launch and Restructuring of SBUs Strategic restructuring of product mix 1. With domain's launch in April 2014, 4 Business headquarters were integrated 2. 26 SBUs were consolidated into15, generating synergies Machinery & Steel Infrastructure Systems General Machinery & Air-Conditioning &.

2 Machine Tool Refrigeration Systems Special Vehicles 16 SBUs). (4 SBUs) (2 SBUs) (4 SBUs). Crane and Material handling Metals machinery system Machine tool Air-conditioners Turbocharger 26 SBU. Compressor Rubber & tire machinery Material handling Precision cutting tool Packaged air-conditioners Environmental Equipment Injection molding machine Equipment etc, for facilities Refrigeration unit Mechatronics system Engine Food machinery for trucks and trailers machinery Agricultural Newspaper . Bridges machinery printing machinery Parking system Paper converting machinery Advanced mechanical Other Equipment systems Commercial Deck machinery Printing machine Machinery, Equipment & Infrastructure Domain 8 SBUs) (4 SBUs) (1 SBU) (2 SBUs).

3 15 SBU. Industry and Precision Turbocharger Machine tool Air-conditioning &. Metals machinery Instrument Material handling refrigeration Advanced mechanical Equipment . Compressor systems Engine Environmental Equipment Machinery Equipment Mechatronics system Agricultural machinery Hydraulics & Machinery machinery 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 3. Mr. Kato 4. Vice President, Machinery, Equipment & Infrastructure , Hiroki Kato Machinery Equipment Okubo Mr. Advanced Mechanical Systems Mikogami Takashi Senior General Manager Tottori Mitsubishi Agricultural Machinery Co., Ltd. Mr. Okazoe Kiyoshi Mitsubishi Heavy Industries Hasegawa Machinery Technology corporation Mr. (Crane and Material handlling System, EC).

4 (Paper Converting Machinery, Newspaper Rotary Press). Hasegawa (Food Packaging Machinery, Injection Molding Machine Mamoru Mitsubishi Heavy Industries Mechatronics Watanabe Systems, Ltd. (Mechatronics System, Steel Mr. Structure Equipment , Mechanical Parking System). Production Management Division Machinery, E quipment & Infr astructure Mitsubishi Heavy Industries Environmental &. Quality Management Division Mr. Doi Chemical Engineering Co., Ltd. Business Strategy Division Procurement Department (Environmental Systems). Osaki Mitsubishi Heavy Industries Compressor Mr. 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. corporation (Compressors). Yamazaki Primetals Techonologies Mr. (Metals marhinery). Tsuda Mr. Hydraulics & Machinery Division Shirao Mr.)

5 Machine Tool Division 1-2. Organizational Chart Kusumoto Mr. Air-Conditioning & Refrigeration Division Executive Vice President, Machinery, Equipment &. Member of the Board, President and CEO. Kazuaki Kimura Infrastructure Chief officer Kajino Mr. Parts Division Automotive Turbochargers Takeda Mitsubishi Heavy Industries Automotive Mr. Thermal Systems Co., Ltd. (CAC). Shimma Mr. Engine Division Ninomiya Mitsubishi Nichiyu Forklift Co., Ltd. (Material Mr. Handling Equipment ). 1-2. Domain Conceptual Overview Business strengthening through the initiatives by cross-divisional organization Seeking growth and strengthening of overall SBUs by building up Business foundation with cross-divisional (4divisions) structure (shared functions).

6 S Expand scale and earnings growth of the businesses applying optimal management methods in line with each Cross-divisional sharing of production technologies; SBU's characteristic Configuration of optimal production structure Sharing of customer information (heat maps ). Evaluation of Business strategies, potential alliances Horizontal QMS deployment throughout domain Cross-divisional organization (shared functions). Business Quality Production Procurement Strategy Management Management Department Division Division Division 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 5. 1-3. Major SBUs Domestic Production Bases Business developments at domestic bases Hiroshima Mitsubishi Agricultural Mihara Machinery Works Machinery Works Ritto Plant Machinery Co.

7 , Packaging Machinery Metals Machinery Shimane Plant Machine Tool Advanced Mechanical Compressors Agricultural Machinery System Shimonoseki Biwajima Plant Shipyard & Air-Conditioning &. Machinery Works Refrigeration Hydraulics & CAC. Machinery Mitsubishi Nichiyu Iwatsuka Plant Sagamihara Forklift Injection Molding Machinery Works Kyoto Plant Machine Material Handling Engine Food Packaging Equipment Machinery Turbocharger 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 6. 1-3. Major SBUs Overseas Production Bases Global developments at 21 worldwide bases (Metals machinery excluded). Number of Product bases Countries Material Handling Equipment 3 Finland, China, USA. Netherland, Thailand, Rocla Turbocharger 4 China, USA.

8 (Material Handling Equipment Engine 2 France, India MHICM. MHAQ Compressor 1 USA. Air-Conditioning &. Rubber tire Machine/ Refrigeration Air-Conditioning &. Machine Tool . Refrigeration, CAC 8 Thailand, China, USA FBH Machine tool . Machine Tool 3 India, China, USA. MTEE. (Turbocharger . MJA MBRD. Air-Conditioning & MFD. (Material Handling Air-Conditioning Refrigeration & Refrigeration . Equipment . MEA(Engine . MCCA(CAC). MENA(Turbocharger). MCCC CAC . MCCC CAC SMTC. Turbocharger . MVDE(Engine . MCO-I. Compressor . MCCT CAC). MTA(Turbocharger . MHI-IPT. Machine Tool). MCFA. (Material Handling Equipment . MACO THACOM. Air-Conditioning &. Refrigeration (Air-Conditioning &. Refrigeration . 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved.))))))

9 7. 1-4. Orders received / Net Sales by SBU. Forklift trucks, air-conditioning & refrigeration, and turbochargers account for roughly half of domain's Business scale. Orders received(FY2014) Net sales(FY2014). Material Material handling Others handling Others Equipment Equipment Machine Machine tool tool Environmental Air- Air- conditioning systems Environmental conditioning &. systems & refrigeration refrigeration Compressor Compressor Metals Turbocharger Metals Turbocharger Machinery machinery Engine Engine Material handling Equipment Air-conditioning & refrigeration Turbocharger Engine Metals machinery Compressor Environmental systems Machine tool 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 8. 1-4. Orders received, net sales & operating income by domain Ratio of orders received, net sales and operating income in FY2014.

10 Domain account for about one-third of the MHI group in terms of orders received, net sales and operating income Orders received Net sales Operating income Machinery, Equipment & Machinery, Machinery, Infrastructure Equipment & Equipment &. Domain Infrastructure Infrastructure Domain Domain 28% 28%. 33%. 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 9. 2. Review of 2012 Medium-Term Business Plan 2015 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 10 10. 2-1. 2012 Business Plan : Targets and Numerical Results In FY2014, the year the domain was launched, orders received, net sales and operating income all grew significantly. in billion yen . 2012 2013 2014. Target Actual Target Actual Target Actual Orders 1, 1, 1, 1, received Net sales 1, 1, 1, 1, 1, Operating income Operating income ratio Areas shaded in yellow indicate results above target.