SessionSession IIIIII ofof thethe U.S.U.S. -- JAPANJAPAN RoundtableRoundtable Series:Series: PartnersPartners inin NuclearNuclear EnergyEnergy Competitiveness Strategies for Emerging Markets/The U.S.-Japan Private Industry Model vs. State Owned Industry Model

February 23, 2011 Kiyoshi Yamauchi

Executive Officer Nuclear Headquarters

1 Contents

1. Nuclear Energy As a Key Player

2. Overview of MHI Nuclear

3. U.S.- Japan Cooperation in Emerging Market

4. Closing

2 1. Nuclear Energy As a Key Player

3 Nuclear Energy As a Key Player

 Growing Needs for Clean & Affordable Energy - Concern About Climate Change Continue - Energy Security - Energy Needs in the Developing World - Proliferation Issues - No Single Winner, No Loser in Energy Portfolio

 The Role of - Solution to Cover Spectrum of Needs - Engineering / Technological Advances - Safe, Clean and Economical NPP Development

4 U.S.- Japan Cooperation As a Key Player

 New Build in US and Japan

 Efficient and Safe Operation

 Emerging Market

5 2. Overview of MHI Nuclear

6 Mitsubishi Nuclear Organization

Approximately 4,500 employees on a consolidated basis (as of April 2010)

MFBR Nuclear Energy Systems U.S.A.：MNES （MITSUBISHI （Mitsubishi Nuclear FBR SYSTEMS, INC.） HQ (Mr. Sawa) Energy Systems, Inc.）

(Control/Managing of Nuclear Business) ATMEA.SAS.

Kobe Shipyard & Takasago 三菱電機Mitsubishi Machinery Works Machinery Electric 電気設備 (Nuclear Island) Works Corporation (Turbine Island) (Electricalとりまと Equipment) め

Mitsubishi Nuclear Nuclear Nuclear Nuclear Takasago Nuclear Fuel Development Plant Power R&D Transport Service Fuel Co., Corporation Training Center Ltd. System Co., Engineering Center, Ltd. Ltd. Co., Ltd.

7 Kobe Shipyard & Machinery Works

 Established : 1905  Employees : 3,900 (For Nuclear Division: 1,700) Kobe Engineering  Land Area Center 1. Main Plant : 669,100㎡ 2. Futami Plant: 501,100㎡  Nuclear products ・ Steam Generator ・ Reactor Vessel etc.

RV (Reactor Vessel) Steam Generator Steam generator facility vessel / reactor internal facility (Futami)

8 Takasago Machinery Works

 Established : 1962  Employees : 3, 300 (For Nuclear Division: 500)  Land Area 1. Main Plant : 873,800㎡ 2. Iwanai Plant: 7,100㎡ 3. Orland Service Center: 60,000 ㎡  Nuclear products ・ Steam Turbine ・ Condenser etc.

Steam Turbine Education and Training Center Nuclear turbine rotor facility of Technical and Human Skill 9 Total EPC Capability

MHI supports all fields with total engineering including conceptual planning, basic, & detailed design, R&D, procurement, manufacturing, construction and maintenance services for both the Nuclear Island and the Turbine Island. Planning Designing Procurement Maintenance Construction R & D Manufacturing Services

10 Mitsubishi Cutting Edge Continuous Track Record in Japan

1970s 1980s 1990s 2000s 2010s to 2030s Tsuruga 24th Replacing New 9u 7u 7u #3/4 Fleet ’17/’18, to be Builds Tomari commercially Planned #3 on line Units

Stage1 Stage2 Stage3独自に経済独自に経済 Dec.’09, Enhanced 性、 Commercially Imported Improved性、 Sendai Safety & 運転保守性 Technology Economy運転保守性 On Line #3 Reliability を向上を向上 ’19, to be commercially on line

Steam Generators For 12 plants

Reactor Vessel Heads 20 Major Replacement Reactor Internals 4 Projects Turbine Rotors 14

Main Control Boards 6

11 Extensive Experiences of New Builds

Contribution to All of the 27 Japanese 24 PWRs in operation PWR Plants Tsuruga -3/4 APWRs under Licensing  From First PWR Power Plant Mihama Unit1 Sendai #3 APWR under st in 1970 to the 21 Century’s Latest APWRs Planning Rokkasho  New Build (or Replacement) Projects Reprocessing Continued Constantly even in the 80-90’s Plant “Nuclear Stagnation” in the US and Europe  Developed Our Own Technologies throughout Long History to Our Core Competence

OHI P/S MIHAMA P/S TOMARI P/S

GENKAI P/S IKATA P/S TSURUGA P/S Joyo Monju Fast (Breeder) Reactors

12 Component Supply to Global Market

RVCH:3units MHI exported over 85% of all nuclear components exported from Japan Sweden Belgium Finland RV: 1unit SG:10units U.S.A

RVCH : 16units SG : 6 units Prz : 1 unit

France RV:3units,Turbine: 6units, RCP:8units, China SG:15units CHP:24units

Mexico Brazil Turbine: 2units RVCH:1unit

SG : Steam Generator Spain Slovenia Taiwan Turbine :2units RV : Reactor Vessel Turbine Turbine Rotor RVCH : Reactor Vessel Closure Heads １unit 2sets RCP : Reactor Coolant Pump CHP：Charging Pump Prz：Pressurizer 13 MHI’s Overseas Bases and Strategic Partners

Strategic partners selected taken into consideration MHI strategic needs and capabilities of partners

MHI Group Strategic partners

North America Europe Asia

Harbin Group (MHIE Paris) MHI

URS COMEX B&V Iberinco License supply & production PROJECT BY PROJECT collaboration with Harbin Group COLLABORATION WITH Collaboration with in for nuclear turbines URS AND B&V AS EPC development of ATMEA1 PARTNERS FOR US-APWR Collaboration with COMEX for Cooperation with 5 Japanese maintenance companies for “International Nuclear of Project-wise collaboration with Japan” for NPP project in Vietnam Iberinco for EU-APWR US Potential Partners Collaboration with WEIR for nuclear power pumps 14 Comprehensive Lineup of Nuclear Technologies

 US/EU-APWR  ATMEA1

The world’s largest light water reactor Globally compatible intermediate light water reactors (1,700 MWe class) (1,100 MWe class) 1. US-APWR 1. A joint venture established with AREVA in 2007 The US-APWR is selected for 2. Combine the world’s most advanced/proven potential nuclear plants. technologies of both companies. 【Owner】 【Site】 【State】 3. Complete basic design and Dominion North Anna #3 Virginia start marketing activities in 2009. Luminant Comanche Peak #3&4 Texas 2. EU-APWR Conformance certification application Wide-range to European Utilities Requirements (EUR) . offerings  Domestic newly constructed plants  Future reactors Domestic PWR plants Next generation Fast Breeder Reactors Light Water Reactors (FBR) 1. HEPCO Tomari #3 Reactor started commercial operation (1,780MWe) on December 22, 2009 (Latest 3rd generation reactor) The 24th newly constructed Participation in the Mitsubishi FBR PWR plant in Japan.. national project. Systems established 2. Sendai #3 preparation (2007) for establishment license application started Make Japanese 3. JAPCO Tsuruga #3 and #4 Reactors technology (Domestic 1,538 MWe class APWR) adopted as a global standard. Under safety review, expected to start operation in 2017 and 2018 15 Strategy of Global Business Operation (including Nuclear)

Overseas group company OverseasOverseas OrdersOrders receivedreceived Overseas office, representative 4,400 bil. yen

3,200 bil. yen

Japan 180%

63% Overseas 49%

2007-2009 2014 average Latin Overseas procurement America Overseas procurement OverseasOverseas manufacturingmanufacturing Midlle 6% East Asia 7% 24% Overseas 180% 200% Europe Orders received 15% by region FY2014

North America 43% 2007-2009 2014 2007-2009 2014 16 Average Average 3. U.S.- Japan Cooperation in Emerging Market

17 Nuclear Emerging Country Market Major nuclear players

 Government Lead and/or Government Owned companies Russia (Atomstroyexport) South Korea (KEPCO + Doosan) France (EDF + AREVA) Canada (AECL)

 Private Company USA (GE/Hitachi, Westinghouse) Japan (Mitsubishi Heavy Industries, Hitachi/GE, Toshiba)

18 Idea: Export Model for Nuclear Emerging Countries

Utilities Nuclear Emerging Country Governments Regulation, Participation Labor Supply, Licensing, of Utilities Support Locally Procured Support Standard, (need incentive Finance for the Utilities) Equipment etc.

Export Private Company

MHI Partners

Nuclear Main Project Nuclear Component Management Supply Chain

19 MHI Contribution: Experience and Ability  Experiences in Nuclear Advanced Countries • QA Experiences in Component Export • CMIS (Configuration Management Information System) • Project Execution Plan • WBS (Work Breakdown Structure)  Own Facilities to support launching Operation • Plant Operation Training Center • Service and Maintenance Training Center  Capability to contribute in various ways • Training for nuclear engineer • Collaboration with Utilities (R&D) • As various kind of infrastructure Maker

• Education of local industry 20 Expectation to US and Japanese Government

 Harmonization of design licensing activities through international organization such as MDEP

 Promoting to make world wide rules on export Nuclear Power Plant (No dumping, Sales within Peaceful use etc.)

 Support to establish Nuclear Infrastructure (Nuclear related law, Nuclear Safety Authority)

 Support to educate and bring in non-proliferation measures to meet IAEA rules (Safeguard etc.) on Nuclear Power Plant

 Support of Nuclear Power Plant Operation Activity (together with Utilities)

 Preparation of an attractive financial proposal 21 4. Closing

22 Closing  MHI has Abundant experiences to supply Safe, Reliable and Economic PWR plants and to render Excellent services with Highest reliability.  MHI has extensive capability to carry out Integrated activities, such as conceptual design, engineering, manufacturing of main components, construction, commissioning and maintenance.  MHI is ready to collaborate with U.S. and Japanese Governments, Utilities and Vendors to promote nuclear introduction in the emerging countries.

A Leading Company in the Global Nuclear Energy Field ～ Sophisticated Production Capabilities Contribute to Low-Carbon Society ～

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