Mitsubishi Heavy Industries, Ltd.

Message from the CFO

Takatoshi Unor, CFO

Pursuing Sustainable Growth in both the Financial and Non-financial Fields

Takatoshi Uno
Director, Executive Officer, CFO, and Division Head, in charge of Corporate Finance and Accounting Headquarters, Corporate Strategy and Planning Office

Committed to strengthening our financial foundation and investing in growth while responding to change

In recent years, society has undergone a wide range of significant changes that have greatly affected the living environment as well. In this context, the logistics sector, which underpins our daily lives as well as corporate operations, has continued to grow in importance. As a comprehensive manufacturer of logistics equipment that provides support to industry, we remain dedicated to achieving sustainable growth while responding to change.
We recognize that the core of our financial strategy is to maintain a sound financial footing while effectively allocating the cash acquired through our business operations in order to effectively fund corporate growth. In this sense, I believe that forging a structure capable of generating a large amount of cash is one of the most important issues facing our Group today. In light of the increasing uncertainty accompanying changes in the economic environment, it is essential that we manage defensively in a manner capable of withstanding major change while practicing assertive management. We remain committed to maintaining an appropriate financial foundation by improving our cash flow, generating ample free cash flow, repaying debt, and further strengthening our financial position. These initiatives will enable us to make more dynamic capital investments, business investments, and development investments that contribute to our sustainable growth.
With regard to shareholder returns, which remain an important management priority, we believe it is essential to maintain stable shareholder returns that are not affected by fluctuations in business performance due to abrupt shifts in the economic environment during the fiscal year. Our corporate policy is to distribute profits commensurate with the profitability of the respective fiscal year. Through this approach, we maintain a balance between enhancing dividends to shareholders and retaining earnings in support of our corporate foundation.

Three key concepts in support of sustainability management

As a comprehensive manufacturer of logistics equipment that supports the global logistics sector, we believe it is important to address environmental and societal issues at the same time that we focus on our own corporate growth.
In terms of both our social responsibility and economic growth, we have positioned the concept of sustainability at the core of our management approach, as clearly indicated in our stated purpose and our long-term business vision.
We have placed particular emphasis on the three key areas — safety and security, automation and autonomy, and decarbonization — as a means of demonstrating our commitment to sustainability management. We are transforming the environment of logistics sites, where the elimination of work-related accidents is a top priority, in order to make these sites safer, more secure, and more welcoming to the many who work in them. At the same time, we are actively providing a variety of products, systems, and solutions to markets in Japan and internationally in order to drive the decarbonization of the logistics sector. Through these efforts, we are supporting the sustainable growth of the Group’s business as we seek to minimize the impact on the environment, which remains a global challenge.
We greatly appreciate the support, guidance, and encouragement of all our stakeholders as we continue to implement these ambitious initiatives.