AerospaceAerospace BusinessBusiness OperationOperation June 18，2008 Teruaki Kawai Executive Vice President, General Manager, Aerospace Headquarters Midterm Business Plan - Aerospace ■ Midterm Business Plan: Strategic Investment into Aerospace Future HighlyHighly ProfitableProfitable BusinessBusiness Present MediumMedium--toto--longlong--termterm StrategicStrategic InvestmentInvestment 2 Forecast; Aerospace Headquarters Operating income (In billion yen) (Consolidated) Period of Investment in Development 14.4 14.6 y hl -4 5 g ss Orders received Net sales Hi e a in (Consolidated) (Consolidated) g us n B 615.8 630.0 640.0 i e om bl 570.0 ec ita 543.3 B of 495.0 500.5 500.0 Pr 2006 2007 2008 2009 2010 2015 2020 2030 (Actual) (Prospect) (Target) 3 Location of Works Related to the Aerospace Headquarters Nagoya Aerospace Systems Works (Aircraft, Space equipment) Nagoya Guidance & Propulsion Systems Works (Aeroengines, Missiles, Rocket engines) Shimonoseki Shipyard & Machinery Works (Commercial aircraft components of Boeing 787 etc.) Hiroshima Machinery Works (Commercial aircraft components of Boeing 777etc.) Kobe Shipyard & Machinery Works Nagasaki Shipyard & (Space equipment) Machinery Works (Underwater/Ship-based weapons) 4 Major Product Lines; Aerospace Headquarters AerospaceAerospaceAerospace HeadquartersHeadquartersHeadquarters Defense ・ BMD ・ Future Fighter Aircraft Space Commercial Equipment Aircraft ・ H-IIA ・ Composite-Material ・ HTV/H-IIB Wing Boxes ・ MRJ 5 Priority Initiatives in the Defense Business Field Defense ■BMD ・・ SustainedSustained BMDBMD businessbusiness involvinginvolving PACPAC --3/Config.3,3/Config.3, etc.etc. ・・ JointJoint U.S.U.S.--JapanJapan NextNext GenerationGeneration DevelopmentDevelopment ProgramProgram ■Future Fighter Aircraft ・・ BusinessBusiness projectsprojects forfor futurefuture fighterfighter aircraftaircraft 6 BMD – Ballistic Missile Defense Patriot PAC-3 Defense Intercept BM In space SM-3 Intercept BM After re-entry Aegis Destroyer Ballistic Missile SM-3 Patriot PAC-3 BMD: Ballistic Missile Defense 7 Future Fighter Aircraft Defense ■ F-4 Fighter In service for over 40 years Model selected in 1966 The successor to the F-4 Fighter ？ F-4EJ ModelModel selectionselection expectexpecteded inin thisthis fiscalfiscal yearyear 8 Priority Initiatives in the Space Equipment Business Field Space Equipment ■H-IIA Launch Services ・・SecuringSecuring severalseveral launcheslaunches throughthrough commercialcommercial satellitesatellite ordersorders ⇒⇒ EstablishEstablish aa stablestable operatingoperating basebase MaintainMaintain highhigh launchlaunch successsuccess ratesrates ■HTV/H-IIB ・・MaterialsMaterials transporttransport forfor thethe InternationalInternational SpaceSpace StationStation ⇒⇒ ExpandExpand scopescope ofof operationsoperations withwith thethe completioncompletion ofof developmentdevelopment ■Propose new projects associated with the enactment of the Basic Space Law 9 H-IIA Launch Services Space Equipment LaunchLaunch servicesservices startedstarted inin FYFY 20072007 H-IIA Launch Successes ・ Launch Vehicle No. 13: SELENE (Kaguya) Consecutive (September 14, 2007) Consecutive SuccessesSuccesses ・ Launch Vehicle No. 14: WINDS (Kizuna) (February 23, 2008) ・・WorldWorld--classclass launchlaunch successsuccess rate:rate: 93%93% (H-IIA only) SeekingSeeking toto gaingain aa footholdfoothold inin thethe globalglobal marketmarket forfor launchlaunch serviceservice operationsoperations 10 HTV – H-II Transfer Vehicle / H-II B Space Equipment HTV H-II B 2009 Launch Schedule Uses two LE-7A engines 9.2m Photo credit: JAXA 4.4m 11 Priority Initiatives in the Commercial Aircraft Business Field Commercial Aircraft ■Boeing 777 ・ Secure profitability through further cost reduction ■Boeing 787 ・ Focus on critical subsystem; composite wing production ■MRJ ・ Promote with the establishment of a new company ⇒ Establish a position as a complete aircraft manufacturer 12 Boeing 777 Transport Aircraft Commercial Aircraft Tail/Fuselage Panel Assembly (Above) Tail, (Below) Fuselage Panel 13 Boeing 787 Transport Aircraft Commercial Aircraft New Plant for 787 Composite Wing One of world’s largest autoclaves (Nagoya Aerospace Systems Works) Shipment from factory of first wing box for the 787 Loading to a cargo plane dedicated to transporting 14 787 components Mitsubishi Regional Jet Commercial Aircraft ■ Building on its experience with the YS-11, MU-2 and MU-300 aircraft, MHI moves towards operations in the complete manufacture of commercial aircraft! YS-11 MU-2 MU-300 15 The Benefits Offered by MRJ Commercial Aircraft ■Low noise EnvironmentallyEnvironmentally Environmentally ■Low CO2 emissions FriendlyFriendly OperationalOperational CabinCabin EconomyEconomy ComfortComfort ■Fuel efficient 16 Summary ■■■AerospaceAerospaceAerospace HeadquartersHeadquartersHeadquarters –––BusinessBusinessBusiness StrategyStrategyStrategy ・・ CoreCore businessbusiness ofof thethe AerospaceAerospace HeadquartersHeadquarters Defense ・・ PromotePromote ProgramsPrograms (future(future fighterfighter aircraft,aircraft, BMD)BMD) ・・ CommercialCommercial SatelliteSatellite LaunchesLaunches Space ・・ HTV/HHTV/H --IIBIIB DevelopmentDevelopment Equipment ・・ CorrespondCorrespond toto BasicBasic SpaceSpace LawLaw Commercial ・・ CompositeComposite WingWing ProductionProduction Aircraft ・・ MRJMRJ DevelopmentDevelopment 17.