MHI Report 2020

1 MHI. Report . 2020. MITSUBISHI HEAVY INDUSTRIES GROUP. INTEGRATED Report . For the Year Ended March 31, 2020. Sustainable Growth through Introduction Resolving Social Issues Further Strengthening of Management Resources Corporate Governance Risk Management Performance Data Mitsubishi Heavy Industries Group aims to achieve sustainable growth by contributing to the resolution of issues facing society and its customers, namely, Balancing economic development and reducing the environmental impact of economic activity.

2 Through its businesses. Based on sound manufacturing technologies and track record, we are working on decarbonization and the evolution of mechanical systems through electrification and intelligent systems, adapting to changes in social value as well as technological innovation. MITSUBISHI HEAVY INDUSTRIES GROUP 1. Sustainable Growth through Introduction Resolving Social Issues Contents Introduction Corporate Governance Our Principles .. 4 Message from the Chairman .. 58. Progressing Along with Society.

3 6 Introducing Members of the Board.. 59. MHI Group's Sustainability Initiatives.. 10 Corporate Governance.. 63. Group Profile .. 14. Domain Reorganization.. 15 Risk Management Operational Risks and MHI's Response to Them.. 72. Sustainable Growth through Resolving Social Issues Business Risk Management .. 74. President's Message .. 16 Compliance.. 76. CSO Dialogue .. 24 Efforts toward Cybersecurity .. 77. Special Feature: Helping Fight Climate Change by Accelerating decarbonization .. 30. Performance Data Business Strategies.

4 36 Financial and Non-Financial Highlights.. 78. Eleven-Year Financial and Non-Financial Data .. 80. Further Strengthening of Management Resources Consolidated Financial Statements [IFRS].. 82. CFO Message .. 46 Corporate Data.. 88. Strengthening Our Technological Infrastructure.. 50 Status of IR Activities.. 89. Human Resources Development and Diversity Management.. 54. 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.

5 As such, these projections involve risks and uncertainties. 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 dollar and other foreign currencies, and trends of stock markets in Japan.

6 Also, the results projected here should not be construed in any way as being guaranteed by the Company. 2 MHI Report 2020. Further Strengthening of Management Resources Corporate Governance Risk Management Performance Data Purpose of Publishing This Report Mitsubishi Heavy Industries (hereinafter referred to as MHI ) Group aims to achieve its growth by contributing to the development of society by responding to current and future issues and needs with a variety of technologies, keeping Our Principles and the Corporate Identity Statement as its base.

7 In order to help shareholders, investors, and other stakeholders better understand the Group's corporate philosophy, we have published this MHI Report 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, the Group's environmental and social activities since fiscal year ended March 2014 (FY 2013).

8 Reference Guidelines International Integrated Reporting Council (IIRC): 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.

9 More detailed information is available on our website. Financial Information Non-Financial Information Important MHI Report . Website Website Financial Section of ESG DATABOOK. Investors CSR . MHI Report (Separate booklet) Detailed finance/ csr/library/ csr/. (Exhaustive). MITSUBISHI HEAVY INDUSTRIES GROUP 3. Sustainable Growth through Introduction Resolving Social Issues Introduction 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.

10 MHI Group traces its roots back to 1884, when founder Today, as a global leader in monozukuri and engi- Yataro Iwasaki launched a full-scale shipbuilding busi- neering, MHI Group utilizes its advanced technology ness in Nagasaki. Over the more than 130 years since to provide integrated solutions in a wide range of then, we have strived together with our customers, fields, from infrastructure such as shipbuilding, shareholders and other stakeholders to take on the transportation systems, commercial aircraft, and challenges of creating new monozukuri ahead of the power systems, to space systems.