In a message from the President and CEO at the beginning, CEO Seiji Izumisawa discusses the Group's core value and raison d'etre, "leveraging our manufacturing expertise to address changing societal issues, we will help realize a safe, secure, and sustainable society," sharing personal anecdotes. Next, in a message from the CFO, CFO Hisato Kozawa provides an outline of financial strategies and targets, as well as the new dividend policy under the 2024 MTBP.

Two feature articles are included. The first feature covers the 2024 MTBP. In addition to explains the contents of the 2024 MTBP, centering on the strategy to strengthen portfolio management, the feature explores the position and aims of the 2024 MTBP through a conversation between CSO Masayuki Suematsu, who is responsible for formulating the business plan, and Masatoshi Fujiwara, Professor at Hitotsubashi University's Graduate School of Business Administration. The second feature provides an update on last year's coverage of MISSION NET ZERO, the MHI Group's plan to achieve net zero CO2 emissions by 2040. Details include the basic strategy to achieve net zero emissions and progress on this strategy, decarbonization technology that is contributing to the realization of a carbon-neutral society, and initiatives by GX Solutions, a new business domain, which was established in April 2024. The feature also explains the initiatives at Mihara Machinery Works, as a pilot plant in an advanced project to realize Carbon Neutrality. The plant has been renamed Carbon Neutral Transition Hub Mihara, where the Group will actively consolidate and implement decarbonization solutions and utilize it as a hub for ongoing initiatives for co-creation with many stakeholders. There are pages providing an overview of each of the Group's businesses and explaining the business environment, key strategies in the medium to long term, and major projects of the Group's four reporting segments: Energy Systems, Plants & Infrastructure Systems, Logistics, Thermal & Drive Systems, and Aircraft, Defense & Space.

The latter half of the report explains elements such as the basic principles and systems of the corporate governance supporting sustainable growth of the Group, as well as sustainability initiatives. In messages from outside directors, two of the Company's outside directors, Mitsuhiro Furusawa and Masako Ii, discuss topics such as the Company's governance and their views on the 2024 MTBP. There is also content on sustainability, covering policies and implementation systems of sustainability management, human rights and biodiversity initiatives, Company-wide SDG-linked Material Issues and metrics for monitoring progress (KPIs), and the Company's response to risks and opportunities caused by climate change (disclosures in line with the TCFD* recommendations). With regards to human capital, an article titled MHI Group's HR Strategy: Launching the Future provides details on HR strategies to realize management strategy of MHI Group.

Going forward, MHI Group will continue issuing integrated reports outlining how the Group is contributing to resolving societal issues as it simultaneously pursues sustainable business growth and ongoing enhancement of its corporate value, presented with a careful balance of financial and non-financial information and in a format easily digestible by shareholders, investors, and all other stakeholders.

*The TCFD (Task Force on Climate-related Financial Disclosures) is a framework established at the request of the Financial Stability Board, comprising central banks and financial authorities around the world along with international bodies and calling for disclosures of initiatives and information related to climate change. Recommendations for disclosures cover four categories: Governance, Strategy, Risk Management, and Metrics and Targets.

Integrated Report: MHI REPORT 2024

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.