Operations Get Underway at MHI Vestas Japan Co., Ltd. -- JV Established to Market Wind Power Systems in Japan --

Tokyo, February 1, 2021 – Operations got underway today at MHI Vestas Japan Co., Ltd., a joint venture between Mitsubishi Heavy Industries, Ltd. (MHI) and Vestas Wind Systems A/S (Vestas) of Denmark newly established to strengthen the two partners' collaboration in the field of renewable energies, mainly wind turbines. The new JV will take charge of marketing onshore and offshore wind turbines in Japan. It stands to benefit from the relationships of trust MHI Group has built with numerous customers through its power systems business, combined with Vestas's robust track record in wind turbine deliveries.

MHI Vestas Japan's head office is located in Chiyoda-ku, in central Tokyo. Masato Yamada, former Asia Pacific Regional Manager of MHI Vestas Offshore Wind, will serve as CEO. Shareholding ratios in the new JV are MHI 70% and Vestas 30%.

In the wake of the Paris Agreement, global warming and climate change have become universally acknowledged issues that critically impact all humanity, ushering in a period calling for vast social changes. Against this backdrop, the global market for wind energy systems is expected to double over the next 10 years (Note1). In Asia, which accounts for half of that demand, a cumulative mean growth rate of near 10% is projected, excluding China.

The Japanese Government too is calling for offshore wind energy to become a major source of power as the country pursues maximum use of renewable energies toward realizing a decarbonized society by 2050. On December 15, 2020, at a Public-private council with representatives from the private sector tasked with strengthening Japan's offshore wind power industry, the government and industry agreed on the following targets in their vision for the offshore wind power industry: 10 gigawatts by 2030, and between 30 and 45 gigawatts by 2040. As these figures indicate, significant growth in this industry is anticipated.

With establishment of MHI Vestas Japan, MHI and Vestas look to build further on the technologies, experience and trust established through the operations of MHI Vestas Offshore Wind. In addition to helping expand use of onshore and offshore wind power, the new JV will integrate the superior technological capabilities and abundant experience of its two parent partners, thereby accelerating global-scale initiatives toward decarbonization.

Profile of the Joint Venture

• 1Source: Wood Mackenzie Global Wind Power Market Outlook Update: Q4 2020
• 2Operations got underway on February 1 at a temporary office.