MHI Publishes "MHI Report 2014," First Comprehensive Report
Integrating Earlier "Annual Report" and "CSR Report"
-- Complete, Easy-to-Understand Presentations of Business Strategies and Initiatives Concerning Environment and Social Issues --

"MHI Report 2014" was prepared incorporating the philosophy espoused in "The International Integrated Reporting Framework" released by the International Integrated Reporting Council (IIRC). The report’s focus is on creation of corporate value, and its content is presented in three main sections: "MHI's Value Creation," "Strategies for Augmenting Corporate Value" and "Initiatives to Enhance Corporate Value." The text has been conceived to deepen understanding among MHI's various external stakeholders, including shareholders and investors, of the company's value creation model, its vision and strategies for achieving that model, and specific initiatives being taken.

In the section titled "MHI's Value Creation," Chairman Hideaki Omiya states his firm belief that "leveraging the technological expertise we have cultivated in the course of 130 years will contribute not only to our own growth but also to social progress and the sustainability of our planet," as MHI's way of realizing its CI statement: "Our Technologies, Your Tomorrow." This section presents an overview of the company's capital strategies, business activities, initiatives to ease environmental loads, social contributions, etc. all focused on achieving MHI's overarching goal.

"Strategies for Augmenting Corporate Value" includes an interview with MHI President and CEO Shunichi Miyanaga. He explains in detail the company's currently implemented strategies for expanding MHI's business scale and improving its capital efficiency and net income level, in its quest to become "a highly profitable company with a business scale of ¥5 trillion." The same section also includes an interview with Executive Vice President and Chief Financial Officer (CFO) Tatsuhiko Nojima, who describes the measures MHI is taking to strengthen its financial base, including aggressive cash flow management and the pursuit of outstanding investment efficiency. The section also introduces the company’s policies for identifying material social issues.

In "Initiatives to Enhance Corporate Value," the detailed business activities of the company's four business domains - Energy & Environment, Commercial Aviation & Transportation Systems, Integrated Defense & Space Systems, and Machinery, Equipment & Infrastructure – are explained in narrative style from aspects such as strategies and created value. The section also takes up topics including intellectual property activities, research & development, and corporate governance enhancement measures to improve the company's soundness, transparency, efficiency and flexibility. An interview is included with outside director Christina Ahmadjian, Professor at Hitotsubashi University's Graduate School of International Corporate Strategy. She describes her impressions of governance at MHI and discusses future issues from the standpoint of enhancing corporate value.

MHI views "MHI Report 2014" in its new format as a powerful tool for advancing diversified dialogue with stakeholders outside the company. The report will be distributed to shareholders, investors, the media, governmental agencies, universities, business corporations, etc., and will also be posted on the company's website:
http://www.mhi-global.com/finance/library/annual/index.html.