Annual Report 2013
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Annual Report 2013 For the Year Ended March 31, 2013 About Mitsubishi Heavy Industries Our Technologies, Your Tomorrow Using manufacturing technologies to resolve various social issues throughout the world Since its foundation in 1884, Mitsubishi Energy & Integrated Defense & Environment Space Systems Heavy Industries (MHI) has contributed to the Shipbuilding & Ocean development of society, seeking to pioneer new Development Power Systems approaches in manufacturing and consistently Aerospace Systems Machinery & Steel delivering products that support the lives of Infrastructure Systems General Machinery people around the world. & Special Vehicles At present, countries the world over are Four Business facing a variety of issues, including energy Power Systems Domains and environmental problems. Shipbuilding & Ocean Machinery & Steel Development Through our technologies that can excite Infrastructure Systems Machinery & Steel people and passion as a manufacturer, the General Machinery Infrastructure Systems MHI Group will strive for the resolution of & Special Vehicles Aerospace Systems global social issues, thereby helping to Others realize a sustainable future for the Earth and Machinery, Commercial Aviation Equipment & Transportation all humankind. & Systems Systems 1 MITSUBISHI HEAVY INDUSTRIES, LTD. Annual Report 2013 3 Message to Stakeholders Applying comprehensive groupwide capabilities toward achieving the 2012 CONTENTS Medium-Term Business Plan 5 Creed and CI statement 6 History of MHI (History of Our Major Technology / Products) 7 Business Model / Important Performance (Financial & Non-financial Highlights) Editorial Policy Investment of a variety of INPUTS ................................................ ESG information expanded capital and resources 7 with a view to integrated reporting VALUE ADDED BY Activities that make products and services ORGANIZATION .................... 8 In order to facilitate the understanding of more sophisticated and streamlined shareholders, investors and other stakeholders Business overview by segment .......................... 9 with respect to the long-term creation of value OUTPUTS for the MHI Group, we have expanded the ................11 environmental, social and governance (ESG) OUTCOMES Financial & non-financial outcomes information contained in this Annual Report 2013. 13 In editing this report, reference was made Main Financial Indexes: 11-Year Summary to the Consultation Draft of the International 15 Business Results and Topics during FY2012 Integrated Reporting Framework, which was published by the International Integrated 17 Interview with By accelerating our global business Reporting Council (IIRC) in April 2013. the President expansion, especially in the Energy & Online version Environment domain, in fiscal 2014 An online version of this report is also available. we aim for ¥4 trillion in orders Here, users can view a video message from received and ¥250 billion the President. in operating income. http://www.mhi.co.jp/en/finance/ ar2013/index.html 25 Feature Meeting Problem-Solving Needs around the World Domain 3. Domain1. Commercial Aviation & Forward-Looking Statements .... 27 Energy & Environment Transportation Systems .... 31 Forecasts regarding future performance in Domain2. Domain 4. these materials are based on judgments made Machinery, Equipment Integrated Defense & ........................... .................... in accordance with information available at the & Systems 29 Space Systems 33 time this presentation was prepared. As such, these projections involve risks and insecurity. 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 35 Business Shipbuilding & Ocean Aerospace Systems ............................. 41 factors include, but are not limited to, economic Segment Development ............................. 35 trends affecting the Company’s operating General Machinery & Review ........................ .................................... environment, currency movement of the yen Power Systems 37 Special Vehicles 43 value to the U.S. dollar and other foreign Machinery & Steel Others ....................................................... 45 ........... currencies, and trends of stock markets in Infrastructure Systems 39 Japan. Also, the results projected here should not be construed in any way as being guaranteed by the Company. About the Cover Photo: Exhaust Heat Recovery Boiler Module, critical equipment for gas turbine combined cycle power plants. The exhaust heat recovery boiler module shown in the photo weighs approximately 4,000 tons, making it the world’s largest modularized boiler. With piping and electric equipment pre-installed in the module, 47 Intellectual Property and R&D Activities work periods at the power plant where the module is delivered can be significantly reduced, 50 ESG Environment and likewise the on-site management burden. Information and Society ........................... 51 Governance .......................... 61 Message from an Board of Directors and Outside Director ....................... 68 Statutory Auditors ......................... 69 71 Corporate Data 72 Financial Section 101 MHI’s Worldwide Network ANNUAL REPORT 2013 2 Business Model / Main Financial Indexes: Business Results Interview with Message to Stakeholders Important Performance 11-Year Summary and Topics during FY2012 the President Message to Stakeholders Our Business and Mission Applying comprehensive groupwide capabilities toward achieving the 2012 Medium-Term Business Plan Shunichi Miyanaga Hideaki Omiya President and CEO Chairman of the Board 3 MITSUBISHI HEAVY INDUSTRIES, LTD. Intellectual Property MHI’s WorldWide Feature Business Segment Review and R&D Activities ESG Information Corporate Data Financial Section Network Despite sustained growth in the Southeast Asian become even more severe in the days ahead. countries and signs of economic recovery in China With this outlook firmly in view, we believe that in driven by economic stimulus initiatives, the global order to enhance our Group’s resilience to global economy decelerated in fiscal 2012 on a broader market risks and to survive and grow as a corporate number of fronts under the widening impact of the group with a true international presence, we must increasingly clear weakening of the European further strengthen our financial base through expansion economies against the backdrop of government debt of our business scale and increased profits. In crises. The Japanese economy also showed evidence particular, we see business scale expansion as our of weakening, as illustrated by decreases in both most urgent and important priority. exports and production attributable to the slowdown The 2012 Medium-Term Business Plan represents of the global economy, but as a whole it staged a the first step towards building a firm and unshakable moderate recovery supported largely by reconstruction global position for the MHI Group. By steadily demand after the Great East Japan Earthquake and implementing this plan, all the while maintaining a lean implementation of fiscal, financial and foreign exchange and agile corporate structure backed by a stance of policies starting in January 2013. unwavering reforms, we will set the MHI Group on a Under this environment, MHI took vigorous and new growth trajectory. specific steps to accomplish the strategies called for The MHI Group will also continue to view CSR as in its 2012 Medium-Term Business Plan launched in its foremost management priority, and in addition to April 2012: namely, “accelerating global expansion,” contributing to sustainable development of society “managing the business portfolio based on strategic through manufacturing activities, we will strive to evaluation,” and “managing innovations in corporate maintain a corporate culture that responds to the governance and operations.” As a result, although expectations and trust of both its customers and orders received and net sales fell short of targets, society as a whole. operating income, ordinary income and net income In April 2013 Hideaki Omiya, after serving for five all exceeded their target figures, return on equity years as MHI president, was appointed chairman improved to 7.4%, and dividends finished at ¥8 and former senior executive vice president Shunichi per share for the year – ¥2 more than the ¥6 Miyanaga took over as president. Under this new projection issued at the start of the term. organizational structure the MHI Group will continue Looking ahead, although the economic to steadily promote reform activities and apply its full situation is now in a recovery mode, the opening capabilities toward achieving the goals defined in the of the global markets will continue to proceed at 2012 Medium-Term Business Plan. an accelerating pace and global competition will We ask for the continued support and become increasingly intense. As a result, we understanding of our shareholders, our investors, and expect the MHI Group’s business environment to all other stakeholders. Hideaki Omiya, Chairman of the Board Shunichi Miyanaga, President and CEO ANNUAL REPORT 2013 4 Business Model / Main Financial Indexes: Business Results Interview with Message to Stakeholders Important Performance 11-Year Summary and Topics during FY2012 the President Message to Stakeholders Creed and CI statement Creed We strongly believe that the customer comes first