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2016 New Year Message from President Takato Nishizawa

No. 052

Yokohama, January 5, 2016 -- To mark the start of the new year, Mitsubishi Hitachi Power Systems, Ltd. (MHPS) President Takato Nishizawa issued a message to all company employees. The main points of his message are described below.

"It is almost two years since MHPS was launched. Although our business environment is becoming increasingly severe, the volume of our orders received has grown steadily since our launch, thanks to the synergy benefits generated from the integration of our two companies. This sustained progress demonstrates that the key objectives we set for the first year of our 2015 Business Plan are producing solid results. Once again, those objectives are: 1) to reap solid results from our synergy merits; 2) to optimize our operating and production bases as a whole; and 3) to strengthen and expand our servicing operations. This year we will continue to work vigorously toward these objectives, with even greater speed than before.

"Last year, in order to respond swiftly to the severe business environment, and to the changes in the market, we undertook organizational reforms and Group restructuring. To optimize our operating and production bases, we set up integrated companies in North America, Southeast Asia and China -- and positive results are gradually being achieved. We now have further plans to establish an integrated company in Europe. Here in Japan, in October last year we integrated our two overseas sales divisions into one unit; we integrated our gas turbine and steam turbine technology divisions; and we set up a new company to handle business in precipitators. As a result of these bold actions, going forward we are now aiming for the creation of even greater synergies, and expansion in both orders received and overall earnings.

"Now that GE has acquired Alstom, we cannot stand idly by. This April, we will resolve our greatest pending issue by integrating our human resources management systems, so truly becoming One Company. On the strength of our highly efficient thermal power generation technologies such as GTCC and IGCC, and the world's most advanced environmental technologies, we aim to contribute to resolving two of the 21st Century's greatest concerns: energy and the environment. We aim for nothing less than becoming the Number One thermal power systems company in the world.

"In order for us to achieve this goal, I hope that MHPS and our Group companies all over the world will form One Team, with all members, across all national boundaries, fulfilling his or her role, so that MHPS will become a more global company. MHPS can grow and make positive contributions to local communities as a global company only when all Group employees strive both individually and as members of our team.

"We must not forget the issues of safety and quality. These are matters that have no end: efforts must be made constantly to take safety and quality to progressively higher levels. Now, as we start off a new year, let us return once more to our basics and strive for absolute maximum capabilities in safety management and quality control.

"Finally, nothing is more precious to a company than the people who work for it. And employees can perform good work only when they are physically and emotionally healthy. I ask each of you to focus on maintaining good health; and as a team let's work together to create a working environment conducive to doing good work.

"It is when times are tough that true capabilities are tested. Have faith in your strengths and in our technologies. Now is precisely the time for us to face the challenges before us, with confidence. As we now enter our third year after integration, let us all work together toward the achievement of our 2015 Business Plan, to make this an even more wonderful and more rewarding new year for us all."

New Year Message from President Takato Nishizawa 1
New Year Message from MHPS President Takato Nishizawa
New Year Message from President Takato Nishizawa 2
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