Group Integrated Report 2025

Regarding the front cover

Since FY2023, when we started publishing the Integrated Report, we have adopted a motif of a butterfly for the front cover. This is because we thought it is indispensable to keep"growth and departure from the status quo"in order to realize Mitsubishi Kakoki Group's Management Vision for 2050.

In addition, beginning with the FY2024 Integrated Report, we are using a newly commissioned artwork by an artist from the Shougaisha Jiritsu Suishin Kikou Association (operated by Paralym Art), which we have been supporting as a partner since April 2024.

Integrated Report 2023 Integrated Report 2024

MITSUBISHI

KAKOKI Group Integrated Report

• Message from the artist (Risa Izumi)

Registered office 2-1, Ohkawa-cho, Kawasaki-ku, Kawasaki, Kanagawa 210-8560, Japan Head office Solid Square East tower,

580 Horikawa-cho, Saiwai-ku, Kawasaki, Kanagawa 212-0013, Japan TEL: +81-44-333-5377 (Planning Department)

URL: https://www.kakoki.co.jp/english/index.html

Issued in November2025

Histor of Value Creation

Our company was established in 1935 as a manufacturer specializing in chemical machinery to meet the demand for domestic production of such machinery. Since then, we have carried out the development, design, manufacturing, and construction of equipment and facilities that meet the needs of the era in a wide range of fields, including environmental fields such as water and air pollution control, marine and industrial machinery, as well as city gas, petrochemical, semiconductor, electronics, food, and pharmaceutical industries, and have a long track record of

achievement. Through the accumulation of these achievements, we have established our core technology of"separating solids, liquids, and gases."

Engineering Business

Gas Technology

•1963: Received an order for a large-scale hydrogen production

Endeavoring to achieve sustainable development and realizing a comfortable society

MORE Sustainable, KEEP Innovating for a KINDHEARTED Society

• Since 1970, we have kept receiving orders for Wellman Lord flue gas desulfurization equipment.

•1983: First received

•Since 2003, efforts to construct hydrogen stations have been strengthened, and our performance has increased.

•2013: Developed and launched HyGeia-A.

Value Creation Story of the Mitsubishi Kakoki Group

2035

100.0

billion yen

Water Treatment Technology

Plant Construction

•1936: Delivered PGC gas purification furnaces.

•Since 1954, orders for carbureted water gas plants have been coming in.

equipment.

•In the 1960s, we entered the sewage treatment market. Since then, we have delivered a large number of products.

order for LNG Satellite

Station.

•1976: First delivered landfill leachate wastewater treatment plant.

• Since 1976, overseas plant construction performance has

•2004: Installed ultra-fast sedimentation equipment.

•2002: Adopted Desmet-type oil and fat production technology.

•Since 2010, we have

Net sales

Growth Strategies to Realize the Management Vision

(million yen)

100,000

•2012: Developed technology for thermal solubilization of sludge.

Industrial Machinery Business

Strategy by Business

•1957: Delivered polyethylene production equipment, and started our engineering business.

increased.

strengthened overseas bases and increased construction performance overseas.

Marine Machinery Manufacturing

•1940: Developed and

•1955: Developed and started manufacturing SJ.

•1984: Launched the SJ-E series.

•1996: Launched the SJ-F series.

•2013: Launched the SJ-H series.

•Since 2010, we have been strengthening

50,000

Industrial Machinery Manufacturing

started manufacturing OP.

•1952: Launched Mitsubishi Young Filter.

•1963: Launched Mitsubishi KM Peeler Centrifuge (HZ).

•1973: Launched Mitsubishi Schneider Filter (pressure filter).

•1998: Launched the GMP-compatible horizontal peeler centrifuge (HZ-Ph).

development and sales of equipment compliant with environmental regulations for ships.

• 2012: Developed and released Mitsubishi Dynafilter.

  •1950: Developed and released Mitsubishi Side Entering Mixer.

  •1962: Adopted the technology for screening equipment and began production.

  •The technical tie-up for screening equipment was terminated, and we established our own technology. 1983: Delivered the first machine.

  
  
  

  Strengthening Value Creation and Foundations to Support Value Creation

  2030- 2050

  1930s-40s

  1950s-60s 1970s-80s

  1990s-2000s

  2010-

  Prewar - Postwar Responding to requests

  for adoption of overseas technologies in Japan

  Initially, we imported technology from overseas for manufacturing, but due to the influence of World War II, we gradually began to develop equipment based on our own technology. This laid the foundation for our current core products, which include hydrogen generation technology and oil purifier manufacturing.

  
  
  

  • 1935 Started business as Kakoki Seisaku, Ltd.

  • 1938 Changed the corporate name to the present name: Mitsubishi Kakoki Kaisha, Ltd.

Period of rapid economic growth Addressing the demand for equipment associated with a rapid increase in consumer demand

We supported economic growth through the development and manufacturing of carbureted water gas plant technology introduced from the UK, as well as the development and manufacturing of an oil purifier. In addition, our company introduced many industrial machinery technologies and entered the water treatment business.

• 1961 Completed Yokkaichi Factory (currently, Yokkaichi Business Works).

• 1963 Established the engineering department, and then started receiving more orders in the engineering business.

  Promoting overseas business development while responding to pollution prevention needs due to worsening pollution

  We entered the industrial wastewater treatment field and brought dust collectors for air pollution control to market. The flue gas desulfurization equipment we adopted from the U.S. helped solidify our position as a manufacturer of pollution control equipment. In addition, we have constructed many chemical plants overseas.

  
  
  

  • 1972 Completed Kashima Factory.

  • 1972 Established Kakoki Kankyo Service, KK. (currently, Mitsubishi Kakoki Advance, Ltd.)

Growing awareness of environmental protection Support for clean energy facilities

We developed a high-purity compact hydrogen generator and delivered the first unit to a hydrogen station. In 2007, the cumulative deliveries of hydrogen generators reached 100 units. Regarding oil purifiers, we launched the SJ-G series in 2002, and in 2008, the cumulative shipment amount exceeded 80,000 units.

• 1995 Established MKK EUROPE B.V.

• 2008 Established Ryoka Trading (Shanghai) Co., Ltd. (currently, Ryoka Mechanical Technology (Shanghai) Co., Ltd.)

Contributing to the realization of a sustainable society through technology and product development

Corporate Data

In 2013, we launched HyGeia-A, a high-efficiency, space-saving system designed for the popularization of hydrogen as a next-generation energy source, and subsequently, we became the first company in the world to generate hydrogen from sewage biogas on a commercial scale. In the environmental field, we participated in a PFI* project for biogas facilities in 2011.

• 2012 Completed SJ Factory.

• 2021 Established our head office at Solid Square East tower, and relocated there together with Mitsubishi Kakoki Advance.

※PFI: Private Finance Initiative

03 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 04

At a Glance

Since its foundation, our corporate group has solved various social issues through its engineering business and industrial machinery business, and supported social infrastructure and the

We will promote the exertion of synergy among divisions, the pursuit of existing businesses, and the development of new businessfields, and help realize our management vision.

Value Creation Story of the Mitsubishi Kakoki Group

In order to establish a business portfolio aiming for consolidated net sales of 100.0 billion yen by 2035, the 100th anniversary of our founding, we established the Sales Division in FY2024 to

foundations of many industries. In addition, the Mitsubishi Kakoki Group's Management Vision for 2050 sets five social issues for 2050 and the establishment of a new business portfolio by developing four strategic business fieldsto solve these issues. We will continue to be a company that addresses social issues through our business.

Hiroyuki Kishida

Executive Officer and Division Director, Sales Division

promote sales activities across our businesses. With the green transformation (GX) business newly disclosed as a segment from this fiscal year, we will fully leverage our accumulated know-how and further expand external alliances to accelerate the creation of synergies both internally and externally.

Sales composition

70%

Petrochemicals

Semiconductors

Electronic materials

Pharmaceuticals

Food-related plant construction

Industrial Machinery Business

Sales composition

30%

Hydrogen-based

clean energy business

Hydrogen stations

Hydrogen absorbing alloy delivery system

Hydrogen compressor using hydrogen storage alloy

(Hydrogen absorbing alloy)

Ammonia decomposition

Dev.

Dev.

Dev.

(Effective use of hydrogen)

Water electrolysis hydrogen generator Dev.

(Green hydrogen)

(Blue hydrogen / Carbon recycling)

CO2 capture equipment

CO2 liquefaction devices

(Carbon recycling)

Methanation

(Carbon recycling / Effective use of hydrogen)

Hydrogen generation from biogas

(Effective use of biogas)

Dev.

Dev.

Centrifuges Oil purifiers

Filters

Growth Strategies to Realize the Management Vision

Agitators

Business of developing next-generation technologies for solving issues related to water, food, natural disasters

Electric Field Filter®"Ele-Fil®"

(New technology development)

Screening equipment Other industrial equipment

Net sales

41.17 billion

Environment, hydrogen, and energy

Hydrogen generators

Hydrogen stations

Net sales

billion

yen

Operating profit

yen

1.92 billion

Water treatment facilities

Waste treatment facilities

➊ LNG-related plants

We design and construct facilities to supply imported LNG (liquefied natural gas) as city gas.

❷ Sewage treatment plants

In addition to manufacturing and constructing equipment used in water and sewage sludge treatment, we also utilize digestion gas generated in the treatment process as clean energy.

❸ Semiconductor plants

We contribute to the distribution of electronic equipment by delivering"HyGeia,"a series of hydrogen generators, and constructing plants for raw materials of semiconductors.

➍ Hydrogen stations

Mitsubishi Kakoki products that create value for society

➏ Power generation plant

❼ Ship

➊ LNG-related plant

❷ Sewage treatment plant

➏ Power generation plants

We manufacture and install equipment to remove unnecessary materials (seaweed, jellyfish, etc.) from seawater used for cooling power generation plants.

❼ Ships

We support the shipping industry by manufacturing and supplying

"oil purifiers"that remove impurities from fuel oil and lubricating oil used in ship engines.

❽ Pharmaceutical plants

18.03 yen

Operating profit

Strategy by Business

yen

3.77 billion

Expecting a hydrogen society, we design and manufacture hydrogen generators and construct hydrogen stations for supplying hydrogen to fuel cell vehicles.

❺ Chemical plants

We combine technologies for reaction,

❽ Pharmaceutical plant

Corporate Data

❸ Semiconductor plant

Strengthening Value Creation and Foundations to Support Value Creation

❺ Chemical plant

We provide precision filters and dryers for the manufacturing process of raw materials for pharmaceuticals in order to support the health and wellness in society.

synthesis, extraction, separation, purification, etc. to design and construct plants and other production facilities.

➍ Hydrogen station

05 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 06

Value Creation Story of the Mitsubishi Kakoki Group

Material Issues

Our corporate group holds up a vision statement, "Endeavoring to achieve sustainable development and realizing a comfortable society,"in our management vision. Specifically, it means that we settle social issues in our four strategic business fieldsby making the most of the core technology we have developed. Creation of social value is essential for achieving our corporate philosophy and management vision, and the keys

to value creation are development of the strategic businessfields, reconsideration of the business portfolio, and strengthening of the

management base supporting our business activities by utilizing our corporate group's strengths and know-how.

We believe that the ability to

The material issues identification process can be found here.

Value Creation Story of the Mitsubishi Kakoki Group

https://www.kakoki.co.jp/en/sustainability/materiality.html

Growth Strategies to Realize the Management Vision

Endeavoring to achieve sustainable development and realizing a comfortable society

ⅠCO₂ emissions and climate change

create value and the formation of a more solid management base are vital for our corporate group's sustainable growth and improvement of our corporate value.

In May 2023, our group identified six material issues by taking into account the business environment and issues (including risks and opportunities) that we are facing, expected social and environmental issues, and major stakeholders.

Strategy by Business

Management Vision for 2050

Five social issues

Initiatives for our four strategic business fields

Ⅱ Circulation of resources Ⅲ Water and food

Vision statement

Ⅳ Natural disaster Ⅴ Labor shortage

Strengthening Value Creation and Foundations to Support Value Creation

Enhancement of value creation abilities

Corporate Data

Base that supports business activities

→ Material issues

07 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 08

of labor and energy

• Promotion of plant maintenance through digital transformation (DX)

Contribution to the saving

3

clean energy

• Production of blue and green hydrogen, etc.

Promotion of the spread of

2

society

• Use of waste plastics, etc.

1 Realization of a recycling

technologies rooted in its manufacturing expertise and strict quality management skills

The Mitsubishi Kakoki Group contributes to the ongoing development of

Corporate society by providing high quality products and facilities based on solid

philosophy

4

Mitigation and avoidance of water and food risks

• Contribution to water and food stability

Material Issues and KPIs

With regard to the material issues our company identified in June 2023, we have set the issues to be addressed and KPIs in our new medium-term management plan (FY2025-FY2027). By monitoring our efforts and progress toward achieving KPIs, we will promote the enhancement of value creation abilities and establish a solid base that supports business activities.

Value Creation Story of the Mitsubishi Kakoki Group

In addition, we will continue to address social issues, enhance corporate value, and achieve sustainable growth to realize the Mitsubishi Kakoki Group's Management Vision for 2050.

1

Enhancement of value

creation abilities

Creation of social value related to the four strategic business fields

2

Establishment of stronger trusting relationships with customers (quality and safety)

3

Promotion of development and use of personnel while valuing diversity

Base that supports business activities

4

Reduction of environmental burdens resulting from business activities

5

Formulation and promotion of manufacturing strategy

6

• Realization of a recycling society: We contribute to a recycling-based society by recycling waste plastics and capturing CO2by utilizing our strengths, such as the separation technology and the filtration technology.

• Promotion of the spread of clean energy: We produce and generalize a wide variety of clean energy sources by developing a technology for producing blue and green hydrogen, which will be the core, and promoting the use of biogas and biofuel.

• Contribution to the saving of labor and energy: We contribute to saving labor and energy for customers and society by promoting maintenance services for facilities and equipment we delivered, by utilizing such technology as digital diagnosis.

• Mitigation and avoidance of water and food risks: We contribute to the improvement of the water quality and effective water use, based on the technology of water treatment and sludge disposal, which we have developed.

We make strenuous efforts to eliminate risks of losing customers'trust due to such reasons as poor quality and defects and take all possible measures. We forge strong trusting relationships with customers by accurately grasping their changing needs as well as providing them with high-quality and highly safe products and services, thereby making our corporate base sounder.

Transfer of technology forms the bedrock of our corporate group's development. At the same time, we promote the development of human capital capable of meeting customers'needs that change constantly by making the most of our employees'diversity, including experience, skills, and values, without being bound by their attributes.

We strive to use energy and resources effectively so that the impact that our corporate group's business activities have on the environment will be as minimal as possible.

In order to formulate a strategy contributing to strengthening of our management base, we promote energy conservation, decarbonization, and zero-emission plants, make our manufacturing more sophisticated and efficient based on digital transformation (DX), and enhance our production system. Furthermore, we promote the development of products compatible with the strategic business fields using the know-how we have acquired through our manufacturing.

Bold risk-taking based on proper governance functions and proper risk management is essential for enhancing

1. Ample resource allocation to the green transformation (GX) business

2. Business expansion by acquiring businesses/technologies through M&As/investments

1. Higher levels of occupational safety and health

2. Product quality assurance

1. Greater employee engagement

2. Pursuit of diversity in the workplace

1. Reduction of our own emissions

2. Visualization of supply chain emissions

1. Pursuit of DX in plants

2. Development of sustainable supply chains

1. Net sales from the GX business in the 3rd year:

   Growth Strategies to Realize the Management Vision

   23.0 billion yen or more

2. M&A/Investment plans carried out:

At least 1 plan

1. Accidents requiring at least 4 days off from work: 0*1

   Strategy by Business

2. Ratio of the cost of quality (loss) to net sales:

Lower than the previous medium-term plan period*2

1. Average employee engagement score:

   Up at least 3 points*3

2. Ratio of female employees: At least 20%

1. Emissions from Scopes 1 and 2:

   
   
   

   Strengthening Value Creation and Foundations to Support Value Creation

   Levels below the targets for 2030 maintained*1

2. Emissions from Scope 3:

Figures calculated and disclosed

1. DX in plants: Technologies adopted by the Group's plants, including Kawasaki Works

2. Material procurement risk management:

Supply chain management

Enhancement of corporate governance

09 MITSUBISHI KAKOKI Group Integrated Report 2025

corporate value. Risk-taking is crucial for business and corporate transformation, and we improve the transparency of our management by separating supervision by the Board of Directors from business execution, and promote proactive dialogue with our stakeholders.

Fully functioning governance Efforts to meet KPIs supported

Corporate Data

Efforts to meet KPIs supported

*1 Target throughout the period for this medium-term management plan in any time frames

*2 Target as the average over the three years for this medium-term management plan compared to the average over the three years for the previous medium-term management plan

*3 Target during the final fiscal year (FY2027) of this medium-term management plan compared to that of the previous medium-term management plan (FY2024)

MITSUBISHI KAKOKI Group Integrated Report 2025 10

Value Creation Story of the Mitsubishi Kakoki Group

Strengths and Capabilities

We have grown by leveraging our core technology of"separating solids, liquids, and gases," providing value through"manufacturing"and"engineering,"and solving various social issues in line with the changes of the times. Leveraging capabilities we have cultivated, we will pursue new business fieldsand deepen existing businesses to achieve our management vision.

Implementation of corporate philosophy

Value Creation Story of the Mitsubishi Kakoki Group

Realizing the Mitsubishi Kakoki Group's Management Vision for 2050

We have refined our separation and filtration technolog and in-house process in response to environmental regulations and changing lifestyles, and provide

Growth Strategies to Realize the Management Vision

a full range of solutions from EPC to O&M, rather than merely supplying equipment

Manufacturing technology, which began with the manufacture of chemical machinery, is the starting point for modern manufacturing technology for high-speed rotating equipment and other products.

Manufacturing technology

(high-speed rotating equipment)

In-house process

We have our in-house processes in various fields such as gas purification centered on hydrogen, and wastewater and sludge treatment.

With a track record of over 80 years of delivering oil purifiers, we are well versed in the requirements of shipboard equipment.

Marine equipment mounting technology

Core technologies

Separation of solids, liquids, and gases

EPC

know-how

We have know-how in EPC (Engineering, Procurement, and Construction) in a wide range of regions and fields, mainly in Southeast Asia.

Strategy by Business

China

Taiwan

Thailand Philippines

Malaysia

Strengthening Value Creation and Foundations to Support Value Creation

Singapore

Indonesia

We support a variety of customer needs, such as solid-liquid separation technology

including filters, as well as purification and separation in chemical plants.

Separation and filtration technology

O&M know-how

In addition to maintenance and servicing of industrial machinery such as oil purifiers and other plant facilities that have been constructed, we also provide operation and maintenance services for wastewater treatment facilities such as sewage plants.

Corporate Data

11 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 12

While responding to requests for domestic production of machinery and equipment,

we refined manufacturing technolog

into proprietary technologies and laid the

groundwork for marine equipment mounting technolog

We have deployed our strength in manufacturing technology developed through the manufacture of machinery and equipment into the engineering

business

Value Creation Story of the Mitsubishi Kakoki Group

Value Creation Process

Value Creation Story of the Mitsubishi Kakoki Group

The Mitsubishi Kakoki Group shall"endeavor to achieve sustainable development and realize a comfortable society"by realizing the"Mitsubishi Kakoki Group's Management Vision for 2050" announced in November 2021.

Social issues recognized b our compan

Input

Characteristic business model

R&D capabilit for

Output

CO₂ emissions and climate change

Circulation of resources

•Equity ratio: 57.8%

• Total assets:

  66,174 million yen

  •Order backlog:

  103,751 million yen

  Intellectual capital

•R&D expenses:

510 million yen

• No. of patents we hold: 89 patents in Japan, 25 patents overseas

  Manufactured capital

• Investment in facilities:

  501 million yen

• Depreciation and amortization cost:

  862 million yen

  developing advanced solutions

  Understanding of needs

  Incorporation of external expertise

  Endeavoring to achieve sustainable development

  and realizing a comfortable society

  Realizing the Mitsubishi Kakoki Group's Management Vision for 2050

Evolution and reinforcement of manufacturing and

Growth Strategies to Realize the Management Vision

Promotion of application development

term management plan

FY2025 to FY2027

Realization of the medium-

Goals in this medium-term management plan

Expand the lines of our products and services in our green transformation (GX) business mostly in the areas of realizing a recycling society and clean energy, thereby serving as a partner in customers'efforts toward

decarbonization.

•Net sales: 90.0 billion yen From GX: 23.0 billion yen

profit ratio: 9% or higher

•ROE: 12% or higher

•PBR: Above 1

Strategy by Business

Initiatives for our

Water and food

• Tangible fixed assets:

  5,331 million yen

  Human capital

• Number of employees (consolidated): 1,017

engineering

Pursuit of existing

Ke point

1

Ke point

Evolution of our business portfolio

•Establishing the GX business

• Boosting the competitiveness of our fundamental businesses

• Implementing our business expansion strategies

  Establishment of management

  four strategic business fields

  1

  Business for realizing a sustainable recycling

  Natural disaster

  Labor shortage

  • Ratio of mid-career recruits in managerial positions: About 49.4%

    Social and relationship capital

• • Energy consumption (crude oil equivalent):

    1,364 kL

    Accumulation of know-how

    Practical use in society

    businesses and application of them to new businesses

    Technical capabilit allowing for practical use in societ

    2

    Ke point

    3

    Ke point

    4

    conscious of cost of capital

    and stock prices

    •Making growth investments

    •Enhancing capital efficiency

• Increasing shareholder return / publishing information that boosts growth expectations

  Stronger human and technical capital

• Pursuing our human capital strategy

• Implementing our manufacturing strategy

  Improved transparency of corporate governance

• Managing our business portfolio / practicing ROIC-oriented management

•Pursuing sustainability

society

Strengthening Value Creation and Foundations to Support Value Creation

2

Hydrogen-based clean energy business

3

Business of saving labor and energy utilizing digital technology

Business of developing next-generation technologies for

•Water consumption:

16 megaliters

Enhancement of value

creation abilities

For details, see pages

07-10

For details, see pages

25-28

4 solving issues related

to water, food, natural

Corporate Data

disasters

Base that supports business activities

For details, see pages

07-10

For details, see pages

21-22

13 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 14

Value Creation Story of the Mitsubishi Kakoki Group

Leveraging the technologies we have nurtured since our founding as one of our greatest strengths, we achieved the medium-term management plan.

Growth Strategies to Realize the Management Vision

In the second stage of our"Evolution and Transformation,"we are dedicating ourselves to the green transformation (GX) business and working as a united group to

realize our long-term vision.

Toshikazu Tanaka

Representative Director, President and CEO

Strategy by Business

Looking back on the history of Mitsubishi Kakoki and how it has created value

Our company was founded in 1935. At that time, the state-of-the-art chemical machinery that was so vital for Japanese society was being imported from Europe and the United States. Our company was launched out of a desire to manufacture the machinery here in Japan.

During the war, importing goods into Japan became difficult, so we began developing oil purifiers. We delivered our first oil purifier in 1940. Our oil purifiers then came to be used not only in Japan but overseas as well, and we have continued manufacturing oil purifiers to this very day, commanding the top market share for these devices.

In the post-war recovery period, as Japan struggled with energy shortages, we constructed energy-related plants such as gas purification plants. In the period of rapid economic growth, we built numerous chemical plants and other facilities to meet strong demand. At the time, pollution was a major problem facing society. Our flue gas desulfurization technologies and factory wastewater and sewage treatment technologies were used to produce cleaner air and water. We dedicated ourselves to environmental conservation and achieved great results.

Since our company was founded, we have carefully cultivated our core technologies for "separating solids, liquids, and gases."We have kept a close eye on the dramatically changing social environment and developed and launched new

products that use our core technologies to meet society's needs. We have maintained this business model throughout our 90-year history.

The business we do supports society's infrastructure, and much of it also assists with environmental measures, so our business activities themselves contribute to the SDGs. We also happen to have a long history of practicing CSV (Creating Shared Value) management, which sees social issues as business opportunities.

Strengthening Value Creation and Foundations to Support Value Creation

In 2035, we will be celebrating the 100-year anniversary of our company. In preparation for that, in 2021 we formulated the Mitsubishi Kakoki Group's Management Vision for 2050.

Corporate Data

In formulating this vision, we placed the employees who will be responsible for the management of the next generation in a central position in order to lay out the path for long-term development with an eye toward 2035 and 2050 as its final year of achievement. As part of the formulation process, we administered a questionnaire to all employees. We foresaw five social issues as being social issues in 2050: CO2 emissions and climate change, circulation of resources, water and food, natural disasters, and labor shortage.

What can we do to address these issues? Through discussions, we identified four strategic business fields:"business for realizing a recycling society,""clean energy business,""business of saving labor and energy,"and"business of

MITSUBISHI KAKOKI Group Integrated Report 2025 16

Growth Strategies to Realize the Management Vision

Message from the President

15 MITSUBISHI KAKOKI Group Integrated Report 2025

developing next-generation technologies."In these new business fields, we can develop new applications and provide greater added value using the technologies we have nurtured through our long history.

By combining our existing businesses with a business based primarily on these new business fields, we aim to double net sales from the 2021 level by 2035 to 100.0 billion yen and achieve an operating profit ratio of 7 to 8%. The plan's

Foundation to rapid economic growth period

ambitious vision is to reach our targets by generating half of our net sales from these new business fields and by pursuing our existing businesses. Our vision statement is"endeavoring to achieve sustainable development and realizing a comfortable society,"and these targets truly embody this statement. We see them as important benchmarks in growing and achieving our ideal state for 2050.

The years leading to 2050

sales growth during the new medium-term management plan period. This has been an unprecedented success, so I think that the medium-term management plan is one deserving of recognition.

Value Creation Story of the Mitsubishi Kakoki Group

Having completed the previous medium-term management plan and looking back on it now, we can see that we have achieved tremendous growth as we feel a sense of accomplishment by achieving the targets we predicted would be hard to reach. I believe that part of this is because of our efforts to transform our corporate climate, which we spent a large amount of time on.

We established the Committee for the Promotion

Present

Contributing to the development of industry while addressing diverse social issues

Adding GX to manufacturing and engineering to further evolve

Endeavoring to achieve sustainable development and realizing a comfortable society

of Organizational Climate Reform in 2014, and this committee has engaged in countless activities already. In the past, our company's climate was one that prioritized closely guarding our current position over taking on new challenges. Our corporate culture was not very conducive to the bottom-up sharing of ideas, and divisions were very inward-looking, with few people being interested in the work being done by other divisions.

We knew that we needed to change this first, so we created opportunities for dialogue, such as "workplace meetings."We implemented multiple measures for creating a more frank and open corporate climate-a climate that revitalized communication, in which people did not blame others, and in which people felt safe reporting failures.

One concrete example would be the"Sanzuke

and the head office. Many of the employees who were transferred to the head office had been working in the Kawasaki Works since they were hired, so there were a good number who expressed hesitation about the move.

Growth Strategies to Realize the Management Vision

Strategy by Business

However, the head office was relocated near JR Kawasaki Station to provide greater mobility, which shortened commuting times and changed the daily lives of employees, leading to a change in their perspectives and mentalities. Consolidating sites increased interaction between divisions, which eliminated the sense of awkwardness and standoffishness between them. This new organizational structure came to be seen as normal. I think that this was one of the factors behind the change in our corporate climate.

We are also a B2B engineering and manufacturing

company, so except for a business support

Changing our corporate climate and achieving tremendous growth

(call people by name-san) Campaign,"which we started roughly three years ago. Instead of calling

perspective, we have not been carrying out public relations activities to raise the company's profile.

We live in an age of increasing political, economic, and geopolitical uncertainty, facing issues such as US tariffs and the situations in Ukraine and the Middle East. To maintain sustainable growth in the midst of this environment, it is important that we prepare for every eventuality. We see these changes in the business environment as being positive ones. The heightened interest in the environment, in particular, presents major business opportunities, and there is a movement of further fleshing out our four strategic business fields.

The previous medium-term management plan (FY2022-FY2024) was positioned as a period of building the foundations of our efforts to realize our

management vision. We worked to establish a new

both our order and sales targets. Orders from Nippon Steel Corporation of large hydrogen production equipment for the demonstration of hydrogen reduction-based steelmaking were particularly large contributors, and our orders received reached new records in the second year of the medium-term management plan. We also received orders from JFE Steel Corporation for seven HyGeia-A compact on-site hydrogen generators. The hydrogen generated with the HyGeia-A is used to convert CO2 in exhaust from steelmaking blast furnaces into methane. These units were supplied for use in demonstration equipment that performs carbon recycling by using

this methane in blast furnaces as a reducing

people by their job titles, such as general manager or president, everyone calls each other by their names with"-san,"the Japanese honorific. This has become ingrained throughout our company, and almost nobody in our company calls me by my title of"president."

I also think we started to show signs of change with the opening of the head office in 2021. Prior to that, we had three sites in the Kawasaki area, and every day people would travel to and from between them as needed. We consolidated that in two sites: Kawasaki Works, where our company was founded,

However, we have recently begun stepping up our efforts to increase Mitsubishi Kakoki's brand value, including improvements related to recruiting, IR, employee motivation, and employee engagement.

Strengthening Value Creation and Foundations to Support Value Creation

In 2024, we signed an official sponsorship agreement with Kawasaki Brave Thunders, a professional basketball team based in Kawasaki. Our goal is to revitalize the community and increase the value of sports culture through basketball,

co-creating a better society.

business portfolio and management base.

Turning to individual businesses, in the industrial machinery business, we saw increases in both orders received and sales for oil purifiers and

reagent.

In the development field, the pace of new product and new technology launches was slower than anticipated, which is an issue that must be

Promoting our new medium-term management plan,"Evolution and Transformation,"through"3 years for a leap forward"with the aim of realizing our vision

equipment compliant with environmental regulations, reflecting the brisk shipbuilding industry. Because of these, we were able to achieve our plan's numerical targets. We were also able to develop new applications through activities such as delivering oil purifiers for use in large-scale equipment for the demonstration of SAF (sustainable aviation fuel).

In the engineering business, capital investment within Japan remained strong, and we achieved

addressed, but we have achieved some success in developing new applications and pursuing our existing businesses.

In the fiscal year ended March 2025, orders received were 64.9 billion yen, net sales were 59.2 billion yen, and the operating profit ratio was 9.6%. We surpassed all of the targets of the third year of our medium-term management plan, including ROE, payout ratio, and dividend amount. We also built up a large order backlog, so there is high potential for

We recently announced our new medium-term management plan (FY2025-FY2027). We established a green transformation (GX) business, positioned the plan period as"3 years for a leap forward"toward realizing the management vision, and set numerical targets of 90.0 billion yen in net sales, an operating profit ratio of 9% or higher, an ROE of 12% or higher, and a PBR of above 1. These targets are the highest we have ever set.

As measures to accomplish this, we have defined four key points: the evolution of our business portfolio, the establishment of management conscious of cost of capital and stock prices, stronger human and technical capital, and improvements in the transparency of corporate governance.

Corporate Data

With respect to the"evolution of our business portfolio,"we brought together the strategic fields

17 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 18

of the management vision-realizing a recycling society, clean energy, saving labor and energy, and developing next-generation technologies-to create a new reporting segment, the GX business segment.

Until now, our engineering business and industrial machinery business were siloed, and each business division conducted their sales activities separately. In 2024, we established our Sales Division, and since then we have taken a unified Mitsubishi Kakoki group approach to our customers. The GX business is not siloed, but instead has a sales structure that spans both the engineering business and industrial machinery business.

For example, the technologies we have long used to manufacture hydrogen can also be applied to new applications, like methanation or hydrogen reduction-based steelmaking in the steelmaking field. The approach used by our GX business is one of applying technologies in all kinds of areas, developing new applications, and contributing to the creation of a carbon neutral society. There is no focus on parent company or subsidiary, or on direct division or indirect division. We are all working together, sharing the same values and working toward the same ambitious targets.

We will focus particularly on the"business for

realizing a sustainable recycling society,"which includes effective use of biogas and CO2 capture, and"hydrogen-based clean energy business,"which includes leveraging hydrogen, as fields for quick wins. By investing 3.0 billion yen in R&D, we are aiming to create 23.0 billion yen in net sales in the GX segment during the new medium-term management plan period, and we are actively promoting business operations to turn GX business into a core business that accounts for over half of our net sales by 2035, the 100th anniversary of our company's establishment.

At the same time, we have positioned the engineering business and the industrial machinery business, which are our fundamental businesses, as mature businesses in which we will leverage differentiation and competitiveness to improve profitability. In addition, we have adopted ROIC as a profitability indicator and we are reviewing and rebuilding our low profitability businesses. Even for businesses we have been engaged in for many years, if profit levels are low, at some point we must reassess them. We set standards and, every six months, use them as filters to make decisions and reallocate resources.

The percentage of our workforce that is made up of women is steadily rising, but women in our company primarily work in indirect divisions. We plan to increase the number of women active in our direct divisions, such as our industrial machinery business and engineering business, and eventually have them take on management positions.

We aim to improve our employee engagement score by three points or higher compared to the previous medium-term management plan. But quantitative improvements are not the only thing that is important. It is also important that the people who work here live rich daily lives. We will provide even more opportunities for face-to-face discussions with employees, such as town hall meetings.

Through this, we hope to provide them with a solid understanding of the new medium-term management plan and to deepen communications in order to foster a rich corporate climate and build our workplace environments together.

Of the four key measures of the new medium-term management plan, I believe that "improvements in the transparency of corporate governance"is especially important. There are countless examples that show that no matter how good a company's business results may be, a single scandal can cause the tables to turn completely.

Value Creation Story of the Mitsubishi Kakoki Group

We must fulfill our governance functions by ensuring that each internal control system, such as our Board of Directors, operates effectively and by performing monitoring.

Growth Strategies to Realize the Management Vision

During the previous medium-term management plan period, we increased the number of External Director positions by one to bring in even more outside perspectives. Furthermore, we increased the number of women on the Board of Directors, which numbers 11 people in total, from one to three, creating a system with a greater focus on balance and diversity.

Strategy by Business

Solid governance and the rich daily lives of our employees are the foundation for sustainable growth

With respect to the"establishment of management conscious of cost of capital and stock prices,"we will further intensify our IR and SR activities, promote more accurate assessments of our company, and raise expectations for our growth.

For example, I personally try to accept as many media interviews and reporting requests as possible.

and development work that contribute to the realization of a recycling society. I get a true sense of the height of society's expectations for us.

Tasks before us in increasing our capital efficiency are addressing the build-up of cash reserves and improving our cash conversion cycle (CCC). Going forward, we will strive to increase our capital

The previous town hall meeting held in FY2022 The head office and Kawasaki Works, scheduled for completion in February 2027

Doing our utmost to realize our vision and making steady progress toward"Evolution and Transformation"

Comparing the information presented in various media gives me an objective understanding of how our approach is being received and provides me with new insights. For businesses such as our hydrogen-based clean energy business, in particular, there is a great deal of interest in our technologies

efficiency by improving our CCC, creating funds through the reduction of non-business assets, and borrowing funds to further enhance our financial leverage.

We are currently prioritizing growth investment as we work toward the 2035 targets we have set as benchmarks in the Mitsubishi Kakoki Group's Management Vision for 2050. We will increase shareholder return while keeping a close eye on the balance of investment and financial soundness. We have set a payout ratio target of 40% for the final fiscal year of the plan, with a DOE of 3.5% as a minimum dividend level.

To create"stronger human and technical capital," we will reinforce our human resource portfolio management and our development of human resources who contribute to the promotion of the GX business. To promote employee diversity, we have set a target of having 20% or higher of employees be women, and we are actively hiring women and appointing them to management positions.

We are currently carrying out construction work in

preparation for the restructuring of our head office and the Kawasaki Works. This work is progressing steadily, and we expect to finish it in February 2027. The site is an important one. It is the soul of our company, the place where we have been developing and manufacturing our diverse products since our company's foundation in 1935.

This new construction will not simply consist of the rebuilding of an aging facility. Instead, we see the new facility as becoming the heart of our corporate group, a place where we carry out R&D focused primarily on the GX business field, appointed with substantial equipment, where we can create exceptional new technologies.

The factory experimentation building will be our site for developing existing and new technologies. It will combine multi-purpose experimentation and research fields for co-creation and synergy with external institutions. The office and research building will use distinctive designs for spaces that promote diverse workstyles and support voluntary, autonomous, self-motivated activities, the building's

cafeteria, meeting rooms, and other facilities. Our

Strengthening Value Creation and Foundations to Support Value Creation

goal is to create a place where employees can relax and where they can engage in rich communication that produces diverse new ideas.

I joined our company roughly 40 years ago, during a period when it was really struggling, and there have been a lot of twists and turns as we have come to where we are today. Even in the context of that background, I feel that these next few years will be our company's greatest period of transformation. In today's society, if you stop for even a moment, you could be left far behind.

Corporate Data

Starting from zero requires a lot of courage. That is why the most important thing in this society is the endurance to keep pushing forward without stopping.

We are putting our words into practice. The ambitious targets we have set in the new medium-term management plan, which we launched this fiscal year, are based on this. I am confident that we will continue to grow, and this year will be the first year of that dramatic growth. We invite you to look forward to our future endeavors.

19 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 20

Mitsubishi Kakoki Group's Management Vision for 2050

Amid the significant change in the business environment surrounding the Mitsubishi Kakoki Group, we established the"Mitsubishi Kakoki Group's Management Vision for 2050"in 2021 under the vision statement of"endeavoring to achieve sustainable development and realizing a comfortable society,"in order to continue our sustainable growth. We will endeavor to realize the vision by clarifying five social issues our corporate group should solve, pursuing four strategic business fields, and establishing a new business portfolio for addressing social issues.

Ideal state for the Mitsubishi Kakoki Group

Four strategic business fields

Core businesses in 2035

Business for realizing a sustainable recycling society

Hydrogen-based clean energy business

Business of saving labor and energy utilizing digital technology

New growing business

Business of developing next-generation technologies for solving issues related

*3: Engineering & Manufacturing

Value Creation Story of the Mitsubishi Kakoki Group

In order to address the five social issues, we aim to establish four strategic businessfields:"business for realizing a sustainable recycling society,""hydrogen-based clean energy business,""business of saving labor and energy utilizing digital technology,"and"business of developing next-generation technologies for solving issues about water, food, natural disasters"by pursuing existing businesses and acquiring new business.

Vision Statement

Mitsubishi Kakoki Kaisha, Ltd.

Policy for reducing Timeline of depletion GHG emissions (Japan) of fossil fuels

2030

To reduce GHG

emissions by 46%

2050

To reduce GHG

emissions to virtually

zero

50 53

years years

150

years

Number of people who will suffer from the shortage of water in 2050

Number of natural disasters*1 (around the world)

About

Forecast variation in the ratio of elderly people*2 (Japan)

billion people (around the world)

About 5.0

Oil Natural gas Coal

times

53

1971

6

325

2019

28% 38%

*1: Total number of cases of floods, abnormal weather, landslides, droughts, and wildfires

*2: People aged 65 years or older were defined as elderly people

Existing businesses (plants, hydrogen/energy, environment, industrial machinery, marine machinery, and O&M*)

Business of developing next-generation technologies for solving issues related to water, food, natural disasters

Business of saving labor and energy utilizing digital technology

Hydrogen-based clean energy business

Business for realizing a sustainable recycling society

Endeavoring to achieve sustainable development and realizing a comfortable society

Growth Strategies to Realize the Management Vision

Strategy by Business

Reform of the business portfolio and an ideal revenue structure

Until 2035

Establishment of core businesses and review of unprofitable businesses

• We aim to establish (1) a business for realizing a sustainable recycling society, (2) a hydrogen-based clean energy business, and (3) a business of saving labor and energy utilizing digital technology as strategic core businesses by 2035.

• We will pursue existing businesses with the aim of entering new business fields.

• We will review the unprofitable existing businesses and reconstruct them to maintain our business scale with the aim of improving profitability.

  From 2035 to 2050

  Further expansion of our core businesses and new growing businesses

  
  
  

• We will add the new growing business"(4) next-generation technologies"to the core businesses to be established by 2035, with the aim of expanding our business further.

  Strengthening Value Creation and Foundations to Support Value Creation

• We aim to continue the existing businesses, which will remain in demand after 2035, while improving their profitability.

Corporate Data

Net sales (consolidated)

*Operation & Maintenance

Organizational reform for solving problems Organizational optimization

To shift focus from existing businesses to new business fields

Plants Environment

To establish businesses in new business fields

Strategic business fields

1. Realization of a

2. Clean energy

Industrial machinery

recycling society

energy

Net sales 100.0 billion yen (Operating profit ratio 7%-8%)

3. Saving of labor and 4. Development of next-

generation technologies

To achieve non-continuous growth through alliance and M&A

New business fields (new businesses acquired)

50%-60%

New business fields (pursuit of the existing businesses)

40%-50%

Present

Existing business domain

2035

2050

Business portfolio and numerical goals

Milestone

100th anniversary of founding

21 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 22

Review of the Previous Medium-Term Management Plan

• In summary, we achieved the business goals (e.g., net sales and operating profit ratio) and financial goals (e.g., ROE and payout ratio) set for the final fiscal year.

In the fiscal year ended March 2024, the amount of orders received reached a record high, largely due to an order for large hydrogen production equipment for the demonstration of hydrogen reduction-based steelmaking.

Value Creation Story of the Mitsubishi Kakoki Group

In the fiscal year ended March 2025, the final fiscal year of the previous medium-term management plan, all key numerical targets were achieved, including orders received, net sales, operating profit ratio, ROE, and payout ratio. Under the previous medium-term management plan, we positioned the period as preparation phase toward the realization of the management vision, centered on the two key points of the establishment of a new business portfolio and the establishment of a management base. We were able to make steady progress with necessary measures such as adopting ROIC as a business evaluation indicator and shifting to management emphasizing capital efficiency, and executing our first M&A in our 90-year history. However, we were not able to make as much progress as expected in bringing new products to market through new development and deepening existing products, and their commercialization, and this leaves us with a number of challenges to overcome.

Previous medium-term plan's key point 1: Establishment of a new business portfolio

Outcome 1: Orders steadily received for hydrogen generators for the use of hydrogen and demonstration

Creation of new business

Outcome 2: Promotion of technology development for CO2 capture and carbon recycling in progress

We did not make as much progress Challenge: as we expected in product launch and

commercialization

Detail Evaluation

Business indicators and targets over the previous medium-term plan period

Operating profit ratio

(billion yen)

(Plan)

93.8

64.9

53.0 46.7

49.0 53.1

51.0

57.0

9.2%

9.6%

6.1%

5.0%

51.5 45.4

5.7%

5.4%

5.8%

5.3%

47.5 44.5

59.2

50.0 47.7

55.0

FY2021

FY2022

FY2023

FY2024

Previous medium-term plan period

Record-high orders received Order for large hydrogen production equipment contributed

Growth Strategies to Realize the Management Vision

• Orders received ■ (Plan) ■ Net sales ■ (Plan)

  
  
  

  Restructuring of the existing businesses and improvement in profitability

Outcome 1: ROIC adopted; transition to management that focuses on capital efficiency

Outcome 2: Restructuring carried out within the Group (e.g., withdrawal from low-growth business)

Outcome 3: Ownership of Tohsoh Corporation (present MKK TOHOKU Corporation) acquired to boost group synergy and profitability

CO₂ capture demonstration unit being installed at our Kawasaki Works (June 2024)

Strategy by Business

MKK TOHOKU's new plant completed in

February 2025

Previous medium-term plan's key point 2: Establishment of a management base

Formulation of manufacturing strategy

Outcome: Restructuring launched to make the Head Office and Kawasaki Works our development and production hubs

Challenge: We didn't reach to a phase to implement a strategy and measures to maximize the effects of the restructuring

Promotion of group management

Outcome: Restructuring carried out within the group and a shared service subsidiary established

Enhancement of disclosure of

non-financial

information

Outcome 1: Information disclosure tools enhanced (e.g., launch of the integrated report)

Outcome 2: Targets set to address climate change

Promotion of diversity

Outcome: Progress in hiring female employees, and appointing women, mid-career professionals, and foreign nationals to managerial positions

Challenge: We could have made a better progress to foster a workplace culture that will enable diverse employees to achieve their full potential in their jobs

Outcome 1: The ROE target (7.0%) achieved over the whole period

Outcome 2: Continuous increase in dividend per share achieved

Strengthening of capital policies

Detail Evaluation

Scheduled to be completed in February 2027

Financial-related indicators and targets over the previous medium-term plan period

ROE (Plan) Payout ratio (Plan)

(billion yen)

30% or higher

32.7%

25% or higher

25% or higher

20.9%

15.5%

25% or higher

20.0%

13.4%

9.7%

10.6%

16.6%

7% or higher

7% or higher

6% or higher

7% or higher

70

37

27

23

23

27

23

27

FY2021

FY2022

FY2023

FY2024

Previous medium-term plan period

Strengthening Value Creation and Foundations to Support Value Creation

Corporate Data

Improvement in corporate value

Endorsement of the recommendations of TCFD

*The company carried out a three-for-one stock split of its common shares effective April 1, 2025. The dividend per share was calculated considering the stock split.

23 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 24

The Medium-Term Management Plan (FY2025-FY2027)

Evolution and

Transformation 2.0

Our visions

Preparation

Previous medium-term plan period (up to FY2024)

for a leap forward

3 years

Growth phase

New medium-term plan period (FY2025-FY2027)

Where we aim to be

FY2035

Actively allocate resources and speed up product development to commercialize the business as soon as possible

GX

GX

Strategic business fields

Taking advantage of market growth, the business will grow to the point where its sales make up more than 50%

Engineering machinery

Industrial

Develop technologies and markets to lay a firm foundation for these businesses

Engineering machinery

Industrial

Expand our operation into peripheral/new markets and ensure differentiation to maintain business scale while improving profitability

Engineering

Industrial machinery

The company expands the lines of its products and services in its GX business mostly in the areas of realizing a recycling society and clean energy, thereby serving as a partner in customers'efforts toward decarbonization.

Value Creation Story of the Mitsubishi Kakoki Group

Growth Strategies to Realize the Management Vision

Strengthening Value Creation and Foundations to Support Value Creation

Strategy by Business

Business portfolio

Planned figures in the new medium-term plan

Based on the order backlog in the final period for the previous medium-term management plan, we aim to increase net sales to over 80.0 billion yen in the fiscal year ending March 2026, and then to achieve net sales of 90.0 billion yen, an operating profit ratio of 9% or

Financial targets in the new medium-term plan

To achieve PBR above 1 during an early period of the new medium-term management plan, we plan to boost net sales to 90.0 billion yen (out of which 23.0 billion yen from the GX business, improve profitability and efficiency, and increase shareholder return.

higher, and ROE of 12% or higher in the fiscal year ending March 2028.

FY2024

FY2024

FY2027

Business scale targets over the new medium-

term plan period

FY2021 FY2024 FY2025 FY2026 FY2027

Results Results Plan Plan Plan

45.4

41.9

46.7

59.2

64.9

77.0

80.0

90.0

92.7

91.7 91.0

88.784.5

69.5

103.7

Net sales CAGR

9.2%

Net sales CAGR

15.0%

(billion yen)

• Orders received ■ Order backlog ■ Net sales

  Targets for profitability indicators over the

  new medium-term plan period

  This medium-term management period

FY2021 FY2024 FY2025 FY2026 FY2027

Results Results Plan Plan Plan

2.7

5.6

6.1%

8.4

9.7%

7.5

8.9%

7.5

9.6%

9.3%

9.7%

12.6%

12.2%

13.5%

13.4%

(billion yen)

ROE Operating Profit ratio ■ Operating profit

Indicator

(Targets in the previous medium-term plan)

(Results)

(Targets in this medium-term plan)

Corporate Data

25 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 26

The Medium-Term Management Plan (FY2025-FY2027)

Evolution and

Transformation 2.0

Key point 1

Evolution of our business portfolio

Key point 2

Establishment of management conscious of cost of capital and stock prices

Goals

Expand the lines of our products and services in our GX business mostly in the areas of realizing a recycling society and clean energy, thereby serving as a partner in customers'efforts toward decarbonization.

Achieve net sales of 90.0 billion yen, operating profit ratio of 9% or higher, PBR above 1, and ROE of 12% or higher

Value Creation Story of the Mitsubishi Kakoki Group

• Establishing the GX business ■ Boosting the competitiveness of our fundamental businesses ■ Implementing our business expansion strategies

  With M&A in view, evolve our business portfolio

  
  
  

  GX business: Defined as a growing business in markets expected to achieve medium- to long-term growth driven by the trend toward decarbonization

  ▶Adequately allocate resources to accelerate product development and business expansion

Potential for growth

GX business

Fundamental businesses

Greater

Financial

corporate value

Strategy by Business

• Aiming to increase shareholder and market recognition, and to earn greater evaluations during the new medium-term plan period

  Shareholder •Aiming to raise the payout ratio to 40% and set the DOE ratio

  Review and rebuild low growth and low profitability businesses

  Potential for profitability

  our corporate value; flexible financing for the optimal capital structure

  • The equity ratio maintained about 50%, with the optimal capital structure in view

health

return

at 3.5% as a minimum dividend level, for the enhancement of the return of profit, taking into account the equity ratio, business results forecasts, and our external environments

Key point 3

Stronger human and technical capital

Key point 4

Improvements in the transparency of corporate governance

Strengthening Value Creation and Foundations to Support Value Creation

• Pursuing sustainability

• Pursuing our human capital strategy ■ Implementing our manufacturing strategy ■ Managing our business portfolio / practicing ROIC-oriented management

• Establish our vision as a shared goal

• Change systems to create workplaces that enable work-life balance

• Support internal reforms of organizational culture

Hire and train GX human resources in alignment with our business strategies Ensure greater employee engagement

Key measures

Targets

• Ratio of GX human resources:

(compared to

Up 3 points or more

the indicators ■ Net sales per technical

• New graduates and mid- ■ Training hours: Up 20% ■ Engagement score: career professionals hired ■ Number of employees with Up 3 points or more (including those hired in professional qualifications: ■ Ratio of female employees:

for FY2024)

human resources in the GX segment:

100 million yen or more

collaboration with external Up 10%

organizations):

150 or more employees

Policy

• Provide more GX-related training sessions and programs

• Facilitate younger employees'success

• Continue active employment of new graduates

• Continue active employment of mid-career professionals

• Collaborate with external organizations, etc.

• Continue HR portfolio management that focuses both on business and expertise

• Shift resources to the GX business

Challenges

20% or more

Key items for monitoring Person in charge Primary internal monitoring process

For greater ROIC

Capital cost

Asset efficiency

Increased sales securing the right profit

Steady cost-cutting efforts

Greater operating profit

ROIC WACC CCC

Non-business assets Cash reserves Sales

Sales growth rate Reduced cost Operating profit

Operating profit ratio

Corporate Data

*We plan to externally disclose only the primary KPIs semiannually.

*GX human resources:"Human resources who engage in our green transformation (GX) business"by our definition

27 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 28

Looking back on our previous medium-term management plan from a financial perspective

Financial policies and measures supporting the new medium-term management plan

Specifically, in our cash allocation, we expect to secure a cumulative total of 26.0 billion yen from operating cash flow over the three-year period, to procure 5.0 billion yen in funds, and to sell off 1.8 billion yen of idle assets and strategically-held shares. Together with the 10.8 billion yen in cash reserves at the beginning of the period, this amounts to a total of 43.6 billion yen in capital. We will allocate 6.0 billion yen of this to shareholder return, 12.6 billion yen to business maintenance and expansion, and 15.0 billion yen to new plant-related spending.

Growth Strategies to Realize the Management Vision

Message from an Executive in Charge of Financial Affairs

Promoting the evolution and transformation of our group leaping towards sustainable growth

Tomonari Miyamoto

Director and Managing Executive Officer

From financial management perspective, in

preparation for major investments, we are making steady progress with the sale of remaining strategically-held shares and the reduction of non-business assets. At the same time, we are shortening cash conversion cycles to help generate funds. We will be actively implementing these initiatives from the first fiscal year of the plan.

Cash allocation

(ROIC) target of 11% or higher. We will continue the ROIC-oriented management we have been carrying out so far, and perform tree analysis, set KPIs and monitor them to improve ROIC for each business.

Value Creation Story of the Mitsubishi Kakoki Group

Through this, we will increase capital efficiency as a whole.

Turning to shareholder return, our target during the final fiscal year of the plan is a payout ratio of 40%, and our dividend policy newly sets a minimum dividend on equity ratio (DOE) of 3.5%. We will improve our dividend levels, of course, for reinforcing and enhancing our shareholder return, but we will also stay conscious of its effect to curb increases in equity and contribute to ROE increase, and work on it as part of our capital efficiency improvement measures.

4.8%

Payout ratio (consolidated) Dividend per share (yen)

(billion yen)

DOE (consolidated)

2.6%

2.1%

2.0%

3.5%

27

23

5.0%

40.0%

4.6%

4.4%

37

80

70

70 80

15.5%

20.0%

90

20.9%

100

35.0%

32.7%

40.0%

Growth Strategies to Realize the Management Vision

Results of shareholder return and plan for the new medium-term plan period

In FY2024, we brought our previous three-year medium-term management plan to a close. We far surpassed our performance targets of 57.0 billion yen in orders received, 55.0 billion yen in net sales, operating profit ratio of 5.0% or higher, and ROE of 7.0% or higher.

In FY2023, with the acquisition of a large-scale order for hydrogen production equipment, we reached a record high of 93.8 billion yen in orders received. In FY2024 as well, we maintained a high level of orders, with 64.9 billion yen in orders received. As a result of this, our current order backlog as of the end of the period has accumulated to 103.7 billion yen. Net sales were

In our new three-year medium-term management plan (FY2025-FY2027), named Evolution and Transformation 2.0, we have set the following performance targets for the final fiscal year of the plan: 90.0 billion yen in net sales, operating profit ratio of 9% or higher, and ROE of 12% or higher. To serve as a partner to customers'efforts toward decarbonization, we aim to expand our green transformation (GX) business mostly in the areas of realizing a recycling society and clean energy. Of our mentioned target of 90.0 billion yen in net sales, we have set a target of 23.0 billion yen in net sales in the GX business, which has been made into its own new segment.

Total amount

Reduction of Shareholder

non-business assets

1.8

billion yen maintenance

and expansion

12.6 billion yen

Business

Operating CF

26.0 billion yen

New plant

15.0 billion yen

Cash reserves at Cash reserves at

beginning of period end of period

10.8 billion yen 10.0 billion yen

Cumulative total over the current medium-term plan period

Cash outflow

Cash inflow

Financing

43.6 billion yen

Total amount

43.6 billion yen

C

FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027

Results

Strategy by Business

*The company carried out a three-for-one stock split of its common shares effective April 1, 2025. The figures before the fiscal year ended March 2025 were calculated, reflecting the stock split for comparison purpose.

59.2 billion yen, up 23.9% year on year, operating

profit was 5.6 billion yen, up 29.1% year on year. Operating profit ratio rose over three years from 6.1% (FY2021) to 9.6%, and ROE rose from 9.7% to 13.4%. ROE was affected by the sale of strategically-held shares, but we achieved a certain level of results by reinforcing our profitability and improving our capital efficiency. With respect to our financial standing, we have maintained an equity ratio of over 50% and a healthy balance sheet.

Turning to cash inflow during the previous medium-term management plan period, the cumulative total of operating cash flow over the three-year period was only 1.3 billion yen due to the impact of an increase in accounts receivable and a decrease in accounts payable resulting from the shortening of payment terms. However, we secured

8.2 billion yen through the sale of idle assets and strategically-held shares, the transfer of businesses, and other activities, so together with the 11.2 billion yen in cash reserves at the beginning of the period, that has left us with 20.7 billion yen in capital. For cash outflow, we recorded 4.8 billion yen in strategic investment, 2.4 billion yen in shareholder return, 2.6 billion yen in business maintenance and expansion, and 0.2 billion yen in other cash outflow, leaving 10.8 billion yen in cash reserves at the end of the period. Of these, we had initially planned for 4.0 billion yen in strategic investment, but the actual investment amount exceeded that.

Overall, our grounded efforts produced solid

results over the three years of the previous medium-term management plan.

Our net sales CAGR (compound average growth

rate) during the previous medium-term management plan period was 9.2%, and we envision a growth rate of CAGR 15.0% during the new plan period, aiming to achieve a very aggressive rate of growth. As I mentioned earlier, our recent order backlog as of the end of the previous fiscal year has accumulated to 103.7 billion yen. We will use this to drive sales growth through the second year of the new medium-term management plan (FY2025 and FY2026), but we must bring in new orders to contribute to sales growth in FY2027. With regard to market environments, we anticipate a growth in demand for semiconductor-related business and new shipbuilding, and decarbonization efforts are continuing, so further growth in orders can be expected.

Meanwhile, for profitability and capital efficiency, although we are laying the groundwork for future growth through growth investments centered on the GX business and investments in the restructuring of Kawasaki Works, our targets are set to maintain current levels.

The period covered by the new medium-term management plan is positioned as the"three years for a leap forward,"and we will utilize financial leverage, such as financing using interest-bearing debt, secure and invest over twice as much business capital as during the previous medium-term management plan, and accelerate our growth. With regard to the D/E ratio, we will pursue its soundness and strive to optimize capital efficiency with a target equity ratio of roughly 50%.

Management that is conscious of stock price and capital efficiency

Our Price Book-value Ratio (PBR) used to be below 1 for a long time, but with our disclosure of financial results for FY2024 and the announcement of the new medium-term management plan on May 15, 2025, our stock price began rising. As of the end of June, our PBR had risen to roughly 1.2, surpassing the new medium-term management plan target of

1. We believe this is due not only to the contents of the FY2024 financial results and the significant increase in year-end dividend, but also factors such as our clearly setting out our intended path to sustainable growth focusing on the GX business, which has been separated into its own new reporting segment, and our announcement of a policy of further reinforcing shareholder return in the new medium-term management plan. These have been positively received by the stock market.

We will continue to steadily make progress in the growth strategies set forth in the new medium-term management plan while also reinforcing our IR and SR activities to foster greater recognition and penetration within the stock market of our business and its future potential.

With regard to improving capital efficiency, for the final fiscal year of the new medium-term management plan, we have set an ROE target of 12% or higher and a return on invested capital

My mission as the Director in charge of the Planning & Administrative Division

Strengthening Value Creation and Foundations to Support Value Creation

Since June 2025, I have been the Director in charge of the Planning & Administrative Division, overseeing not only the financial division but also the overall administration operations, including general administration and human resources.

Corporate Data

Our corporate group's new medium-term management plan, Evolution and Transformation 2.0, is an extremely important milestone in our roadmap for achieving our ideal state for FY2035 and the Management Vision for 2050. These three years will be a turning point in our journey toward sustainable growth. As the Director in charge of the Planning & Administrative Division, I see my own mission to consist of accurately identifying changes in the external and internal environment and promoting the evolution and transformation of our group by implementing the best management and financial measures. I will do my utmost to achieve the goals of our plan.

29 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 30

Growth Strategies to Realize the Management Vision

Financial and Non-Financial Highlights

Financial Highlights

Net sales

Operating profit/ Operating Profit ratio

■■ Operating profit

• Operating profit ratio

  Return on equity (ROE)

  Total assets / Net assets

  Value Creation Story of the Mitsubishi Kakoki Group

  ■■ Total assets

  ■■ Net assets

  (million yen) 59,202

  48,753 45,438 44,590	47,774

  60,000

  50,000

  40,000

  30,000

  20,000

  10,000

  (million yen)

  9.2

  5,694

  5.6

  6.1

  5.7

  4,410

  2,745

  2,770

  2,521

  
  
  

  6,000

  4,500

  3,000

  1,500

  9.6

  （％）

  10.0

  7.5

  5.0

  2.5

  (%)

  20.0

  13.4

  10.8

  10.6

  9.7

  
  
  

  16.0

  12.0

  8.0

  4.0

  16.6

  (million yen)

  80,000

  51,837

  50,521

  52,899

  34,577

  38,227

  25,286

  27,307

  30,325

  64,000

  48,000

  32,000

  16,000

  63,170

  66,174

  0

  2021/3 2022/3 2023/3 2024/3 2025/3

  0

  2021/3 2022/3 2023/3 2024/3 2025/3

  0.0

  0

  2021/3 2022/3 2023/3 2024/3 2025/3

  0

  Growth Strategies to Realize the Management Vision

  2021/3 2022/3 2023/3 2024/3 2025/3

  Ordinary profit

  Equity / Equity ratio

  ■■ Equity

  • Equity ratio

Dividend per share

Cash flow

• Cash flow from operating activities

• Cash flow from investing activities

(million yen)

4,709

2,939

3,230

2,859

6,000

5,000

4,000

3,000

2,000

1,000

5,626

(million yen)

54.1

54.7

60

48.6

34,577

38,227

25,216

27,307

30,325

45

30

15

0.0

40,000

30,000

20,000

10,000

57.3

57.8

（％）

.0

.0

.0

.0

(yen)

100

36.67

23.33

23.33

26.67

80

60

40

20

70.00

(million yen)

831

996 1,346

1,360 1,369

43

−477 −558 −512

−533

−854

−2,594

-1,047

-3,311

6,000

4,000

2,000

0

-2,000

5,123

• Cash flow from financing activities

  
  
  

  0

  2021/3 2022/3 2023/3 2024/3 2025/3

  0

  2021/3 2022/3 2023/3 2024/3 2025/3

  0

  2021/3 2022/3 2023/3 2024/3 2025/3

  -4,000

  Strategy by Business

  2021/3 2022/3 2023/3 2024/3 2025/3

  Non-Financial Highlights

  Energy consumption (crude oil equivalent)

  Scopes 1 and 2 CO2 emissions

  *The company carried out a three-for-one stock split of its common shares effective April 1, 2025. The figures before the fiscal year ended March 2025 were calculated considering the stock split.

  Number of female employees

  Number of new graduates hired

  (kL)

  1,564

  1,489

  1,439

  1,308

  1,364

  2,000

  1,500

  1,000

  500

  (t-CO₂)

  3,000

  2,000

  1,000

  2,716

  2,536

  (people) 96

  100

  80

  60

  40

  20

  (male and female)

  (people) 3

  82

  86

  87

  91

  6

  3

  2

  2

  5

20

15

10

5

■■ Number of male new hires

2,494

726

647

■■ Number of female new hires

0

2021/3 2022/3 2023/3 2024/3 2025/3

0

2021/3 2022/3 2023/3 2024/3 2025/3

0

2021/3 2022/3 2023/3 2024/3 2025/3

0

Strengthening Value Creation and Foundations to Support Value Creation

Apr 2020 Apr 2021 Apr 2022 Apr 2023 Apr 2024

Waste generated

(tons)

500

363.4

309.5

241.7

227.7

424.0

400

300

200

100

Ratio of employees taking childcare leave

(%)

100.0 100.0 100.0 100.0 80.0

76.9

100.0

70.0

50.0

28.6

100.0

80.0

60.0

40.0

20.0

■■ Ratio of male employees

■■ Ratio of female employees

R&D expenses

(million yen)

510

362

276

230

600

480

360

240

120

598

Number of patents and utility models

(number)

25

14

12

13

17

82

77

81

81

89

120

100

Corporate Data

80

60

40

20

0

2021/3 2022/3 2023/3 2024/3 2025/3

0

2021/3 2022/3 2023/3 2024/3 2025/3

0

2021/3 2022/3 2023/3 2024/3 2025/3

0

2021/3 2022/3 2023/3 2024/3 2025/3

31 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 32

Growth Strategies to Realize the Management Vision

Investment Strateg: Restructuring of the Head Office and Kawasaki Works

Purpose of the plan

Since our founding in 1935, our current head office and Kawasaki Works have served as our core manufacturing plant. However, with the facilities deteriorating and the need to build the business foundation to realize the Mitsubishi Kakoki Group's Management Vision for 2050, we decided to implement a restructuring plan.

This plan is a strategic business investment for reforming our business portfolio with the aim of developing four strategic business fields and implementing new manufacturing strategies.

Outline of the plan

The office and research building (Image)

Progress of the plan

After the announcement of this plan in August 2024, the demolition of the former No. 2 Factory began in October, and the work was completed.

Going forward, in order to construct a new office and research building and a factory experimentation building, work such as foundation work and steel frame erection will be carried out sequentially.

Work style reform project team

Since 2019, we have run a project team for reforming workstyles to improve

Value Creation Story of the Mitsubishi Kakoki Group

Site of the former No. 2 Factory where the new

facilities will be built

According to this plan, we will dismantle the buildings of the head office and Kawasaki Works, excluding SJ Factory and the hydrogen station, and rebuild factories, offices, and research facilities required for our business.

➊ The office and research building

By integrating the functions of offices and research facilities, we will strive to optimize the spaces required for these functions and ancillary facilities, such as a cafeteria

and meeting rooms.

❷ The factory experimentation building

Under the concept of an environmentally-friendly cutting-edge factory, this building, as a manufacturing hub driving energy saving, decarbonization and digital transformation (DX), will function to assemble industrial machines, such as existing centrifuges, filtering devices, and filters, and equipment compliant with environmental regulations for ships, and to

manufacture next-generation products. The factory experimentation building (Image)

Name Structure type The number of stories Maximum height Total area Scheduled completion date

• Structure and type of the buildings

productivity, enhance each employee's occupational skills, and improve motivation. As we proceed with the restructuring of the head office and Kawasaki Works, we have decided to resume the activities of this team with the aim of designing workspaces that will suit diverse work styles for the future. Activities include the following:

1. Conduct a survey of the current situation: Consider the optimal design and layout of the office area based on factors such as the current layout of the office area and the amount of documents stored.

2. Conduct a web survey: Conduct a survey on employees working at the head office and Kawasaki Works about their working conditions and satisfactionfor one week, and consider improvement measures for issues based on the results of the survey.

3. Conduct interviews with the President and Division Directors: Conduct interviews with senior management to ensure that the concept is aligned with management policies.

4. Conduct workshops: Hold group discussions among project members on our company's strengths and ideal working styles, and gather ideas that

President Tanaka being interviewed

Growth Strategies to Realize the Management Vision

Strategy by Business

Discussion among Division Directors

Environmental considerations and

can be reflected in the design of the office area. Based on the concept formulated through these activities, we will proceed with detailed designs for office areas that enable employees

to generate innovation

Achieve open, flexible, and innovative offices

Maximize work style flexibility

Promote communication and collaboration

Improve productivity and efficiency

Emphasize employee health and well-being

A place for innovation creation

Workshop being held

process control

• In this plan, we need to construct each building and transfer the functions of

  and collaboration.

  Concept of the work style reform project team

  existing offices and factories to the new buildings without suspending them. To do so, we will deliberate on each process to a sufficient degree so that our business activities will not be affected by the delay in the restructuring process.

  In addition, we will pay attention to the ambient environment, and take sufficient measures to ensure safety and prevent noise and vibration during the restructuring work.

• We will discuss the possibility of adopting the latest energy-saving and energy-generating technologies, which are listed in the right table, and execute plans with the aim of obtaining the ZEB* Ready certification

  and with a view to obtaining the Nearly ZEB

  Environmentally-friendly cutting-edge factory, and improved employee engagement are the themes

  Strengthening Value Creation and Foundations to Support Value Creation

  This plan is the largest capital investment since our founding and is one of the strategic business investments to realize our management vision. To this end, we will install diverse R&D functions that enable close collaboration with external partners and assembly functions that embody new technologies, and build an"environmentally-friendly cutting-edge factory" that supports our manufacturing.

  Corporate Data

  Those of us working here, guided by the concept of"achieving open, flexible, and innovative offices"formulated through the activities of the work style reform project team, will foster voluntary, autonomous, self-motivated activities, build spaces and environments that support each person's work style, and improve employee engagement.

  As the plan enters a highlight phase for these objectives, we intend to

  certification.

  *ZEB stands for Net Zero Energy Building, which is aimed at achieving zero annual balance of primary energy consumption in the building while realizing a comfortable indoor environment. The four grades (ZEB Oriented, ZEB Ready, Nearly ZEB, and ZEB) were defined.

  Genta Nagamori

  Manager of General Affairs Section, General Affairs & Personnel Department

  firmly support everyone so that no one is left behind and all move forward in

  the same direction.

  33 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 34

  
  
  Research and Development, Technolog Development and Production Strateg

  Topics of Research and Development

  Value Creation Story of the Mitsubishi Kakoki Group

  Development of algae cultivation technology

  We will work on the development of technologies and production activities, involving all business units, and take the initiative in creating new products and businesses.

  Technology Development & Production Division is pursuing element technologies and developing new technologies and products, while taking full advantage of the excellent technologies accumulated for many years, enriched testing equipment, and the mobility of division staff. To realize our management vision and achieve the new medium-

  term management plan, we will conduct R&D related to the newly established green transformation (GX) business and lead the restructuring plan as the main division in charge of R&D and manufacturing in the renewal of Kawasaki Works that started in FY2024.

  Executive Officer and Division Director, Technology Development & Production Division

  Akiyoshi Yamazaki

  Technology Development & Production Division

Hiroki Ogata

Development Planning Section

Research & Development Department

Kojiro Sota

Growth Strategies to Realize the Management Vision

Development Planning Section Research & Development Department

Promotion of manufacturing strategies for realizing our management vision

In 2020, our corporate group installed an urban photobioreactor at the head office and Kawasaki Works and has been developing algae cultivation technology. Algae have long been used in supplements due to its abundant nutrients, and research is now advancing on its use as an alternative fuel for aircraft and as a raw material for various chemical products.

• Enhance experimental fields ■ Network linkage of manufacturing

• Integrate manufacturing and R&D elements within our corporate group

• Promote communication in interaction areas

• Consider introduction of energy-saving and energy-creating technologies

Focus on the restructuring of head office and Kawasaki Works

Our mission is to implement group-wide initiatives in order to accelerate product development for strategic business fields, thereby realizing the Management Vision for 2050. While responding sensitively to trends such as decarbonization and the SDGs, we will advance and realize product development for the four strategic business fields: "business for realizing a sustainable recycling society,""hydrogen-based clean energy business," "business of saving labor and energy utilizing digital technology,"and"business of developing next-generation technologies for solving issues related to water, food, natural disasters."These business fields address the five social issues set forth in

the Management Vision for 2050, specifically, CO2 emissions and climate change, circulation of resources, water and food, natural disasters, and labor shortage.

The new Kawasaki Works, scheduled for completion in February 2027, is positioned as the

product development and production hub (mother factory) for the GX business, leading the entire group in manufacturing.

When did Mitsubishi Kakoki begin its algae-related business?

Q

Sota: We have a track record of constructing cultivation facilities since the 1990s. Since delivering the first rotary cell extractor in 1958, we have accumulated technical know-how through the supply of oil and fat extraction equipment and refining equipment.

Q What kind of research is currently underway? Ogata: We are conducting cultivation tests using a photobioreactor installed at the Kawasaki Works. We are developing cultivation equipment that incorporates labor-saving and energy-saving technologies for cultivation, which are essential for the industrialization of algae.

Q Do you already have a delivery track record? Ogata: Yes, deliveries include a research facility in Saga City, Saga Prefecture, established by Kumagai Gumi Co., Ltd. to advance the practical and industrial applications of sustainable, environmentally-friendly hybrid agriculture, and inquiries continue to increase.

Strategy by Business

Q

How does this align with Mitsubishi Kakoki's existing business?

Sota: In our industrial machinery business, we can perform separation and concentration using Mitsubishi Disc Separators, and we can also extract lipids and high-value-added substances for biofuels using a Nutsche filter dryer. As commercialization is expected in the future, we can leverage our engineering business's overseas plant-construction know-how when building large-scale cultivation and extraction facilities.

Technology Development & Production Division

Research & Development Department

•Development Planning Section

•Research & Test Section

•Material Development Section

• Intellectual Property Management Section

• Development & Implementation Section

• Seeking research themes from a medium-to long-term perspective and outside

  of existing frameworks, and promoting development

• Promoting material development, material testing, and applied testing operations that contribute to research and development

• Raising awareness about the importance of intellectual property and actively promoting intellectual property creation, protection and applications. Patent research and patent infringement prevention

• Promoting the development of equipment for putting development technologies into practical use

Technology Development Office

• Devising themes to realize the management vision, searching for collaboration with business units

• Facilitating development projects across multiple divisions and steering the projects in an efficient manner

• Pursuing higher added value by combining basic technologies

• Developing a business model for commercialization (monetization)

Manufacturing Department

•Production Engineering Section

• Industrial Machinery Manufacturing Section

  •Selfjector Manufacturing Section

• Kashima Manufacturing & Technical Section

  •Kashima Administration Section

• Comprehensive management of production sites (Kawasaki Works and Kashima Factory, etc.)

• Promoting production control and operational reform as a manufacturing coordinating division

• Achieving accident-free and disaster-free operations by ensuring safety in each factory and properly inspecting equipment

• Reducing quality costs (implementing target setting and follow-up)

• Formulating manufacturing strategies for realizing our management vision

Installed photobioreactor

Q What are the characteristics of photobioreactors?

Sota: Cultivation takes place in sealed glass tubes, which prevents contamination and enables high productivity. It also incorporates a mechanism that efficiently dissolves injected CO₂, a pigging system that easily cleans the inside of the glass tubes, and a vibration-isolation structure. Mitsubishi Kakoki Advance, a subsidiary of our company, sells the equipment, including AlgaCube®, a portable, unit-type device designed for indoor testing and research.

Mitsubishi Disc Separator Small filter dryer

Strengthening Value Creation and Foundations to Support Value Creation

Q What other characteristics do algae have? Ogata: Because algae grow by absorbing CO₂, we are also conducting a demonstration in which CO₂

Q

generated from our small hydrogen generator is sent to a photobioreactor to absorb CO₂. Algae are expected to play a role in simultaneously addressing energy issues and absorbing greenhouse gases.

Corporate Data

How do you plan to conduct your research in the future?

Sota: We will continue exploring various possibilities for algae through industry-academia-government collaboration and create synergies with our accumulated know-how. We intend to grow this business into one that can play a major role in realizing our management vision.

35 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 36

Digital Transformation (DX) Strateg and Its Progress

DX roadmap

Value Creation Story of the Mitsubishi Kakoki Group

2050

2035

We implement initiatives in accordance with the DX roadmap, which was produced while specifying the order of priority so that they would progress in tandem with the initiatives toward the Management Vision for 2050. The DX roadmap is reflected in concrete processes, and we regularly check the progress of DX strategies.

In addition to the promotion of digital transformation (DX) inside our company, we aim to offer solutions that help clients solve issues, such as labor shortages.

As we consider digitalization and DX to be indispensable for realizing the Mitsubishi Kakoki Group's Management Vision for 2050, we have formulated the Mitsubishi Kakoki Group's DX Strategy with the objective of boosting our DX activities and promoting DX in all group companies, and the whole group has been engaging in the promotion of digital transformation.

Hideaki Aikawa

General Manager of Digital Transformation Department Planning & Administrative Division

and upgrading

Streamlining

Digitalization of information and

of business business operations

streamlining of

Unification of group data

Al-based analysis of integrated data and adoption of latest technologies

operations

Detection of signs of defects, etc. by AI

Further development of new business fields

Smart factory

Improvement of the current production process

Visualization of the production process by IoT

DX human resources training based on digital technologies

Clarification and data adaptation of veteran know-how

Human resource development

Visualization of personnel skills

Development of new products

based on the group infrastructure

Analysis of management based on internal

Consolidation of the group system

and external data Creation and

and intellectual establishment

property

of businesses based new customer of infrastructure

Creation of Swift recovery

Standardization of business operations

Improvement and analysis of external intellectual property based on KPIs

on collaboration experience with industrial, academic services

and governmental organizations

in the event of disasters

Development of KPIs and analysis of internal intellectual

property based on ROIC

Arrangement of the environment for online and offline innovation

the foundation automatization

Expansion of

Deepening

of O&M

Group synergy

for marketing technologies analysis

Data-driven

Open innovation

Elevation of customer experience

Contribution to society and the environment

Growth Strategies to Realize the Management Vision

To shift focus from existing

business to new business fields

Mitsubishi Kakoki Group's DX strategy

Our company has upheld three concepts-"Sustainable Innovation DX,""Business Creation DX,"and"Society Contribution DX"-as a step toward the realization of the management vision. In order to achieve these concepts, we have subdivided them into eight themes and have been engaging in respective measures.

Apart from streamlining business operations, we will create businesses and spur the reform into a sustainable organization, creating new value to solve social issues, through the utilization of digital technologies and data.

Streamlining and upgrading of business operations

Human resource development

Data-driven

Group synergy

Open innovation

Elevation of customer experience

Contribution to society and the environment

DX concepts

Key measures

Targets

Society Contribution DX

Improve levels of satisfaction and create value throughout each product lifecycle, thereby contributing to social development

Business Creation DX

Create new businesses through government-industry-academia collaboration and group synergy

Sustainable Innovation DX

Transform manufacturing and engineering expertise into a sustainable form

Smart factory

Strategy by Business

Main initiatives to date

Sustainable Innovation DX

Sustainable Innovation DX

Added a workflow function to the core system and started operation

Receiving

Placing an order

Expense report

Workflow

an order

We centrally manage a variety of figures by handling ordering operations of receiving and placing orders and expense aggregation within our core system. By integrating workflow functions into the core system, we have promoted a paperless work environment and established a system that accommodates various work styles.

Strengthening Value Creation and Foundations to Support Value Creation

Introduction and operation of a video manual creation tool

*DX human resources:"Human resources equipped with knowledge of business and digital expertise and capable of making innovative changes in businesses,"by our definition

*CRM: Customer relationship management (a process of managing information about and relations with customers to develop and facilitate good relationships with customers)

Created by experiencedstaff and used by younger employees for learning

Input by each division staff member and data management by sustainability staff

We have introduced a video manual creation tool to efficiently pass on experiencedemployees'experience, know-how, and various work procedures to younger employees.

Society Contribution DX

In addition to accommodating diversified work styles, the new tool can also support individualized learning. We also promote the tool's use in business activities, such as in the explanation of the handling of various products.

Corporate Data

We are advancing various disclosures to meet social demands for sustainability-related disclosures. Since calculating GHG emissions requires collecting figures from multiple divisions and consolidation was a complicated task, we introduced a visualization tool to improve efficiency and have started operating it.

37 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 38

Green Transformation (GX) Business

We launched the green transformation (GX) business to accelerate the realization and promotion of the four strategic business fields in the

Sketch of our GX business

• Our GX business revolves around the strategic business fields that contribute to the resolution of social issues, which we include in our management vision.

  Business of saving labor and energy utilizing digital technology

  Business of developing next-generation technologies for solving issues related to water, food, natural disasters

Value Creation Story of the Mitsubishi Kakoki Group

• This medium-term management plan focuses on the"business for realizing a sustainable recycling society"

  Mitsubishi Kakoki Group's Management Vision for 2050:"business for

  and"hydrogen-based clean energy business"as fields for quick wins.

  Over 50.0-billion-yen net sales

  realizing a sustainable recycling society,""hydrogen-based clean energy business,""business of saving labor and energy utilizing digital technology,"

  and"business of developing next-generation technologies for solving issues related to water, food,

  Vision of GX business growth

  R&D expenses of 3.0 billion yen mostly

  in the GX business to establish it as our core business by earning quick wins in 2027

  23.0-billion-yen net sales

  natural disasters."The newly established Green Transformation Business Office will play a central role in this effort and work to accelerate and expand business development while coordinating

  FY 2025

  ～2027

  Quick-Win

  Medium-term plan period

  2027 2035

  Separation and purification, biogas, waste recycling

with the business divisions. By establishing the GX business as a new reportable segment, we have created a framework that enables the quantitative monitoring of progress in business plans across strategic business fields . During the new medium-term management plan period, we designate two businesses,"business for realizing a sustainable recycling society"and"hydrogen-based clean energy business,"as quick-win fields, and plan to achieve 23.0 billion yen in net sales from the GX business by the final year of the medium-term management plan period. To this end, we will make a growth investment of 8.0 billion yen centered on the GX business to advance technology

Strategic business fields (GX business)

Mitsubishi Kakoki Group's capabilities

Business for realizing

a sustainable recycling society

Hydrogen-based clean energy business

development and social implementation, and to expand our operations and business scale through enhancing M&As and alliances.

Green Transformation (GX) Business

1 Business for realizing a sustainable recycling society

(Carbon recycling / Effective use of hydrogen)

Dev.

Methanation

(Energy-efficient pharmaceuticals manufacturing)

iFactory®

3 Business of saving labor and energy utilizing digital technology

We need to establish four strategic business fields to realize our management vision. The Green Transformation Business Office will play a central role in putting great efforts into promoting this.

Products and services for GX business

Growth Strategies to Realize the Management Vision

• We will expand the business by introducing main products such as hydrogen production equipment to meet the growing demand for hydrogen.

• We will promote R&D to bring low-carbon hydrogen (blue/green hydrogen), which is expected to grow in the future, and carbon recycling, such as CO₂ capture, to market during the period of this medium-term management plan.

  Takashi Inoue

  Director and Managing Executive Officer, General Manager of Green Transformation Business Office

  Reportable segments changed

  Main businesses

  
  
  

  Strategy by Business

  Business for realizing a recycling society, clean energy business, business of saving labor and energy, business of developing next-generation technologies

  2 Hydrogen-based clean energy business

  Hydrogen compressor

  Dev.

  Water electrolysis hydrogen generator

  (Green hydrogen)

4 Business of developing next-generation technologies for solving issues related to water, food, natural disasters

• It is essential that we achieve growth in the strategic business fields in order to realize our management vision.

• We set up the GX business as our new reportable segment to transition to a framework for quantitative monitoring so that we can further promote and expand the strategic businessfields.

  
  
  

  Former segments

  Engineering business

  Industrial machinery business

  Reportable segments

  Our GX business's goals and strategy

  Strengthening Value Creation and Foundations to Support Value Creation

  • We aim to accelerate and expand business promotion under the newly established Green Transformation Business Office.

  • We will contribute to the realization of a decarbonized society by proposing and providing our GX-related technologies, products, and services.

New segments (from FY2025)

Business details

Reportable segments

Plants

Hydrogen/ Energy

Environment

Engineering business

Strategic business fields

GX business

Industrial machinery

Marine machinery

Industrial machinery business

Developing next-generation technologies

Saving labor and energy

Clean energy

Realizing a recycling society

Clearly present our roles and establish

our status geared to carbon neutrality

Contribute to local economies by following

a decarbonization model centered on local production for local consumption

●➊ Setting up the new Green Transformation Business Office

and accelerating our efforts to establish our GX business

• Develop a company-wide strategy and policy leveraging our products and processes.

• Identify and resolve issues as early as possible to facilitate the processes of commercialization and productization.

• Advance and establish planning-and-proposal-based business activities.

❷●

Engaging in a solution business

geared to carbon neutrality

• Find needs for GX among customers of our fundamental businesses.

• Propose solutions and create projects to help customers resolve issues related to the environment.

• Creating a decarbonization model centered on local production

●➍

for local consumption and projects for effective use of hydrogen

our technologies and products

Developing value chains using

• Create projects in collaboration with municipalities.

• Create projects for effective use of hydrogen, with the use of public assistance programs in view.

• Offer our technologies and products in all supply chains for production, transportation/storage, and/or use of hydrogen.

• Create systems that incorporate our products to facilitate decarbonization.

❺●

Boosting market communication

• Increase our brand recognition through trade fairs and digital marketing.

• Establish the Mitsubishi Kakoki brand awareness so that the public will associate GX and hydrogen with us.

➏●

Partnering for reinforcement and expansion

• Expand our business areas and acquire technologies through M&As.

• Boost our technological capabilities and expand the lineup of our products and services through strategic partnerships.

Corporate Data

*The GX business falls into the strategic business fields. It consists of new businesses as well as existing technologies and products that have been developed or refined for specific uses.

39 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 40

Engineering Business

In our engineering business, we construct plants in a wide range of fields, from chemical materials, semiconductor-related products, and electronic materials, forming the foundation of industry, to city gas and wastewater treatment,supporting essential lifelines, and even hydrogen, which is currently attracting significant attention as a new energy source. We strive

to build a sustainable and comfortable society by meeting customer needs through long years of

Summary of the variation in performance of the engineering business (results)

• Orders received ■ Net sales

  Operating profit (million yen)
  
  

51,081

44,464 41,171

36,429

36,796

38,343

33,234

29,091

31,624

33,212

31,247

32,512

26,145

23,381 23,534

24,356

25,925

20,012

21,309

-48

-136

1,199

1,877

1,436

1,588

1,924

-235

-147

308

78,079

experience and technical expertise, forcusing on construction quality, delivery management, and safety measures.

FY2015

(Results)

FY2016

(Results)

FY2017

(Results)

FY2018

(Results)

FY2019

(Results)

FY2020

(Results)

FY2021

(Results)

FY2022

(Results)

FY2023

(Results)

FY2024

Value Creation Story of the Mitsubishi Kakoki Group

(Results)

Plant Engineering Business

We will proactively exchange information with clients, grasp needs, and actively cultivate new business fields.

Environment, Hdrogen, and Energ Business

We are implementing blue/green hydrogen generation technologies, resource circulation systems, and technologies for the effective utilization of biogas to create new value and addressthe growing demand for hydrogen.

Satoki Nakashima

Executive Officer and Division Director, Plant Project Business Division

Main businesses

Petrochemicals, semiconductors, electronic materials, pharmaceuticals, food-related plant construction, etc.

Hideki Miyajima

Executive Officer and Division Director, Environmental & Hydrogen & Energy Business Division

Growth Strategies to Realize the Management Vision

Main businesses

Hydrogen generators, hydrogen stations, city gas-related plants, water treatment facilities, waste treatment facilities, biogas plants, etc.

Strengths

• Engineering capabilities applicable to a wide range of fields

• A large customer base established through years of experience

• Overseas EPC know-how based in Southeast Asia

  Opportunities

• Customers returning to construction sites in Japan due to geopolitical risks, etc.

• Increased capital investment in new fields by customers'carbon neutrality initiatives

• Achiving synergies through increased collaboration opportunities with internal and external parties

Weaknesses

• Limited capacity for projects caused by human resources constrains

• Volatility in sales due to project progress

  Threats

• Increase in raw material and labor costs

• Capital investment stagnation caused by US tariff policy

SWOT analysis of the plant engineering business

SWOT analysis of the environment, hydrogen, and energy businesses

Business strategy in the current medium-term management plan

Strengths

• Over 60 years of history and a track record of nearly 200 deliveries of hydrogen production equipment and accumulated technical know-how

• A large customer base in the gas and energy fields dating back to our founding

• Biogas production technologies cultivated through sludge treatment including sewage systems

  Opportunities

• Growing demand for clean energy, including hydrogen, for carbon neutrality initiatives

• Growing demand for effective utilization of hydrogen in the steel industry and other industrial fields

• Capital investment increase due to aging public infrastructure. Utilizationof the private sector to address customer staffing shortages

  Weaknesses

• Manufacturing capacity limited by human resources and production capacity

  
  
  

  Strategy by Business

• Insufficient track record in Public Private Partnership (PPP) business

  Threats

• Rising costs of raw materials and labor

• Delays in energy transition due to the US and other countries' retreat from global warming policies

• Decrease in public capital investment due to a shortage of financial resources

  In the medium-term management plan, the plant engineering business needs to secure more stable earnings as a core business, and we will explore customer needs to develop new applications, advance EPC by leveraging digital technologies, and manage project intake efficiently. In particular, in anticipation of a decreasing labor force, we will promote digital

  transformation (DX) and strengthen external alliances to maintain strong internal operational capabilities. We will also adopt modular construction methods and promote vendor development to shorten onsite schedules

  and reduce costs, and establish a framework to meet diverse customer needsincluding capital investments that comply with environmental regulations.

  Business strategy in the current medium-term management plan

  Main initiatives and achievements

  Order received for a complete set of extraction equipment for one of the world's largest microalgae production facilities

  
  
  

  We received an order for a complete extraction system from CHITOSE Group (CEO: Tomohiro Fujita), which is a family of companies promoting the bio-economy, for a project commissioned by

  New Energy and Industrial

  Technology Development

  Many plant construction projects are progressing smoothly

  
  
  

  Many plant facilities have started or completed construction against a backdrop of strong capital investment demand in Japan. We ensure the delivery schedules and quality that meet customers'

  expectations through robust safety measures and effective

  management of construction

  Hydrogen is attracting significant attention as a clean energy source as we move toward carbon neutrality by 2050. We have been delivering hydrogen production equipment for more than 60 years and expect to expand the use of hydrogen not only for industrial applications but also for the development of technologies aimed at decarbonization. We are conducting demonstrations of biogas utilization technology in Japan and overseas and will accelerate its commercialization. We construct

  Main initiatives and achievements

  Started demonstration testing of CO2 capture equipment

  We installed CO2 capture equipment adjacent to the

  wastewater treatment facilities, including sewage treatment plants, and have technologies such as thermal sludge solubilization technology, for efficient biogas production.

  
  
  

  Strengthening Value Creation and Foundations to Support Value Creation

  By promoting early practical application of our CO2 capture equipment, currently under development, we aim to contribute to the realization of a sustainable society in fields that support infrastructure, such as gas energy and sewage treatment.

  Our water treatment equipment (rotary drum screen) received the Japan Society of Industrial Machinery Manufacturers President's Award

  Our rotary drum screen won the Japan Society of Industrial

  Organization (NEDO) in Malaysia. In addition to delivering our filters, we will leverage our overseas EPC know-how to advance construction.

  Source: Chitose Laboratory / Facilities of New Energy and Industrial Technology Development Organization (NEDO)

  *The plant engineering business received the order in FY2024, and the green transformation (GX) business has taken over its management since this fiscal year.

  and project progress.

  Promoting DX in design work

  as well

  compact hydrogen generator HyGeia-A at Kawasaki Works and started demonstration testing

  
  
  

  in June 2024. We aim for the early commercialization of equipment that can capture CO2 with high efficiency to achieve both cost-effective hydrogen production and blue hydrogenation.

  CO2 capture demonstration unit (front), compact hydrogen generator HyGeia-A (center)

  
  
  

  Corporate Data

  Machinery Manufacturers President's Award at the 50th Excellent Environmental Equipment Awards hosted by the Japan Society of Industrial

  Machinery Manufacturers. It is mainly used in sewage treatment plants to remove foreign materials from sludge.

  Takashi Inoue, then Division Director of Environmental & Hydrogen & Energy Division, receiving the certificate of commendation

  41 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 42

  
  
  

  Industrial Machiner Business

  Out of our core technologies of"separating solids, liquids, and gases," mainly based on the"solid-liquid separation technology"cultivated since our foundation, we develop, design, manufacture, and sell a wide variety of industrial machinery such as filters, centrifuges, and screening equipment. The business is broadly divided into the marine machinery field and the industrial machinery field. In the marine machinery field, we manufacture and

  Summary of variation in performance of the industrial machinery business (results)

  • Orders received ■ Net sales (million yen)

  Operating profit

  20,463

  18,031

  13,610 13,155

  14,112

  14,850

  15,782 15,261

  12,434 12,570

  12,324

  13,264 12,254

  13,438

  11,557

  11,957

  13,549

  12,225

  13,342

  10,299

  3,770

  1,831

  1,430

  1,253

  1,245

  1,023

  867

  1,334

  2,212

  2,822

  
  
  

  sell our flagship oil purifier and equipment compliant with environmental regulations for ships, , and provide a worldwide after-sales service network. In the industrial machinery field, we provide customers with complete support in various fields including pharmaceuticals, food, and chemicals,

  FY2015

  (Results)

  FY2016

  (Results)

  FY2017

  (Results)

  FY2018

  (Results)

  FY2019

  (Results)

  FY2020

  (Results)

  FY2021

  (Results)

  FY2022

  (Results)

  FY2023

  (Results)

  FY2024

  Value Creation Story of the Mitsubishi Kakoki Group

  (Results)

  from the selection of an optimum model, the delivery of the equipment to after-sales services.

  Main production and after-sales service bases

  
  
  

  Industrial Machiner Business

  Out manufacturing technology, we have cultivated since our founding, brings new value to the production process.

  Koji Nagane Major products

  Kawasaki Works

  
  
  

  Major products

  • Oil purifiers

  • Wastewater treatment

  Kashima Factory

  
  
  

  Major products

  Growth Strategies to Realize the Management Vision

  • Screeing equipment

  • Pressure vessels,

    Executive Officer and Division Director, Machinery Business Division

    Marine machinery: Oil purifier, equipment compliant with the environmental regulations for ships Industrial machinery: Filters, Centrifuges, Screening equipment, Agitators, etc.

    equipment for EGR engine systems

    • Centrifuges, filters, agitators, etc.

      etc.

      Strengths	Weaknesses made products means some products are not as competitively
      with an extensive delivery record priced as those offered by specialized manufacturers Opportunities Threats

      • Marine machinery: Strong brand power and top share of oil purifiers (domestic: approx. 90%, global: approx. 40%), backed by sales of more than 120,000 units, as well as a robust global after-sales service network

      • Industrial machinery: A wide lineup of filters and centrifuges

      • Marine machinery: Compared to marine applications, the share of oil purifiersfor non-marine applications is low and the track record is weak

      • Industrial machinery: Having a broad lineup and many custom-

      • Marine machinery: Increased demand for oil purifiers and equipment compliant with the environmental regulations for ships, driven by growing demand for new shipbuilding

      • Industrial machinery: Automation and labor-saving needs due to labor shortages. GX economic transition bond issued to stimulate investment in the next-generation battery and SAF fields. Subsidized investment to ensure stable supply of pharmaceuticals from the standpoint of economic security

      • Common: Increase in raw material and labor costs

      • Marine machinery: Weaker price competitiveness in the Chinese market due to yen appreciation and stagnation in the new shipbuilding market caused by U.S. government policies

      • Industrial machinery: Stagnant capital investment due to the US tariff policy

      SWOT analysis of the industrial machinery business

      Business strategy in the current medium-term management plan

      Yokkaichi Business Office

      
      
      

      Major business

    • Management of spare parts of oil purifiers for after-sale services, order placement, shipping, etc.

      Topics of New Products

      Mitsubishi Kakoki Advance, Ltd. Kitakyushu Factory

      
      
      

      Major products

      Strategy by Business

  • Pressure vessels, etc.

    
    
    

    In the medium-term management plan, the business leading shipbuilding market and strengthen our structure policy for the industrial machinery business is to further in anticipation of increased after-sales service demand. In stabilize earnings from main products such as oil purifiers industrial machinery, we will differentiate existing products, as a fundamental business, develop new products for such as Nutsche filters, by reflecting customer needs in our iFactory®, etc., implement Electric Field Filter (Ele-file®) in target fields to promote higher value-added products and society, and promote application development of existing strengthen our price competitiveness. We will establish models. For oil purifiers, we will promote the development manufacturing sites that meet the needs of the future era of non-marine applications, in addition to our existing by promoting the use of digital technology, including the strength in marine applications. For marine applications, adoption of digital transformation (DX) at Kawasaki Works, we will also work to expand our share in China's world- our core plant that is undergoing restructuring.

Main initiatives and achievements

Cooperation on a project for long-term use of marine biodiesel fuel

We are cooperating on risk assessment using oil purifiers in Project LOTUS, a six-month

performance evaluation project using a mixed fuel of biodiesel (FAME) made from mainly used cooking oil and conventional very low sulfur fuel

Launch of oil-purifier components compatible with marine biodiesel fuel

These components can be used with biodiesel fuel, which is attracting attention as a promising means of reducing greenhouse gas (GHG) emissions, by swapping in

Development of a metal non-contact Nutsche filter (NF)

In response to the growing need to reduce metal contamination in electronic material

applications mainly for the semiconductor industry, we developed a new "metal non-contact Nutsche filter"with a non-contact agitator seal and

Expanded lineup of compact tabletop testing machine

Our lineup of compact tabletop testing machine includes the mini CURUPO continuous vacuum filter, the DyF ceramic membrane

concentrator, and the Nutsche filter pressurized filter dryer. We will further expand our product lineup in the future, including centrifugal filters,

received an order for the first unit of this filter.

Compact filter dryer (Nutsche

filter) with a non-metal-contact version released

to meet the diversification of our customers'testing methods and the non-

exposure requirements of test operators.

Mini CURUPO continuous vacuum filter

Donated Mitsubishi Selfjector to the Japan Agency of Maritime Education and Training for Seafarers

We donated three Mitsubishi Selfjector SJ-H series oil purifiers to the Japan Agency of Maritime Education and Training for Seafarers for use in education

Toward the social implementation of the Electric Field Filter®

Strengthening Value Creation and Foundations to Support Value Creation

Corporate Data

The new Electric Field Filter® "Ele-FilTM,"a new technology announced in November 2023, has received a lot of positive feedback. For social implementation, we are

oil (VLSFO), that is being conducted by Nippon Yusen Kabushiki Kaisha and others.

Automobile carrier (image)

the kit components without changing the operation or structure of existing oil purifiers.

Biodiesel fuel compatible components

and training, and received a letter of appreciation for our donation. The donated equipment will be used to enhance and strengthen the seafarer education business.

Certificate of appreciation presentation ceremony held at the head office

developing applications through application tests and aim to start selling test units in 2025.

Testing equipment to be released (image)

43 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 44

Strategy by Business

Business Strateg (Subsidiaries)

Value Creation Story of the Mitsubishi Kakoki Group

Overview of Subsidiaries and Their Business Strategies

Engineering

MKK Asia Co., Ltd.

Business activities

EPC for plants and facilities and maintenance of existing plants in Southeast Asia

Engineering

Mitsubishi Kakoki Advance, Ltd.

12 Fl., Alma Link Building, 25 Soi Chidlom, Ploenchit Road, Lumpini, Patumwan, Bangkok, 10330

Industrial Machinery

Business activities

Engineering, manufacturing, constructing, after-sales service, maintenance and management of plants, environmental measurement, temporary staffing, etc.

Growth Strategies to Realize the Management Vision

Business strategy in the current medium-term management plan

Solid Square East tower 20F, 580 Horikawa-cho, Saiwai-ku, Kawasaki, Kanagawa 212-0013, Japan

Business strategy in the current medium-term management plan

In-Group Services

MKKi Co., Ltd. Business activities

Exploration of new business forms and development of business model design, innovative human resource development, etc.

and plant business (maintenance), the company will create projects in GX-related fields to contribute to the GX business

15 Fl., Kawasaki Tech Center, 580-16 Horikawa-cho, Saiwai-ku, Kawasaki, Kanagawa 212-0013, Japan

as one of our group's focus fields. In addition, it will promote the creation of synergies, such as collaboration among production hubs, to maximize the manufacturing function within our group.

Industrial Machinery

RYOKA MECHANICAL TECHNOLOGY (SHANGHAI) CO., LTD.

Business activities

Sales of and technical support, maintenance, repairs and other after-sales services for oil purifiers (SJ and OP series), marine equipment and a wide range of centrifuges and filters including the supply of spare parts.

Corporate Data

RM. 1006, Orient International Plaza Part (C), No.85 Lou Shan Guan Road, Shanghai, China

45 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 46

Value Creation Story of the Mitsubishi Kakoki Group

Strategy by Business

Special Feature

Launch of MKK Project b Mitsubishi Kakoki

Held a press conference for the project launch

Growth Strategies to Realize the Management Vision

We held a press conference on July 3, 2025 to announce the start of the Project. The press conference was attended by a large number of media, reflecting the high level of interest in the Project. We also held a panel discussion with Chairman Motozawa of the Kawasaki Brave Thunders, Professor Horie of Sophia University, and our Managing Executive Officer Hayashi to discuss topics such as themes that the three parties would like to pursue in collaboration in the future.

From left: Tetsuya Horie (Professor, Faculty of Economics, Sophia University) ; Toshikazu Tanaka (Representative Director, President and CEO of Mitsubishi Kakoki ); Yasuhide Hayashi (Managing Executive Officer in charge of Innovation Promotion of Mitsubishi Kakoki); Nobuo Motozawa (Chairman of the Kawasaki Brave Thunders)

MKK Project b Mitsubishi Kakoki

Project

Panel discussion being held MKK Project logo

Strategy by Business

Aiming to install new social value in the new stadium arena

1

-Turning Kawasaki into an Energy Co-Creation Zone-

The MKK Project by Mitsubishi Kakoki (the"Project") aims to create solutions to social issues and business models by utilizing and integrating Mitsubishi Kakoki's environmentally-friendly and energy-creating technologies with the assets and know-how of its co-creation partners. Together with a wide variety of co-creation partners, mainly companies and organizations located in Kanagawa Prefecture including Kawasaki City, the Project will advance both the development and supply of local circular energy systems using hydrogen and biomass, and the development of demand (business design), with the aim of building a new business model in a recycling society, and thereby solving social issues.

In the Kawasaki! Arena City Project led by the Kawasaki Brave Thunders, we aim to realize the world's most cutting-edge, environmentally-advanced arena mainly through the supply of clean energy, which we have cultivated since our founding.

Strengthening Value Creation and Foundations to Support Value Creation

Kawasaki! Arena City Project aiming to open in 2030

Regional revitalization

2

Learning Human resource

Sports and culture

Environment Disaster response

Project

Signed a memorandum of understanding with Sophia Universit to

Corporate Data

establish a social collaboration course

development

Food and healthcare

In this social collaboration course, Mitsubishi Kakoki plans to be in charge of research and development of production facilities for agricultural crops based on biogas, a renewable energy source, with a view to utilizing hydrogen and ammonia, as well as the building of on-site local circular energy systems through bio-food recycling using food waste and livestock manure, etc.

Five activity fields of the project Project structure image

47 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 48

Strengthening Value Creation and Foundations to Support Value Creation

Promotion of Sustainabilit

Value Creation Story of the Mitsubishi Kakoki Group

Due diligence for human rights

Due diligence for human rights (Guiding Principle 17)

Implement the PDCA cycle for continuous

improvement

Stakeholder engagement

Develop a human rights policy

(Guiding Principle 16)

Corrective action and complaint handling Establishment of mechanisms (Guiding Principle 22)

Our group is introducing"due diligence for human rights"to continuously identify, prevent and mitigate, address, and share information on negative impacts on human rights through its business activities. In order to secure human rights and realize a sustainable society and economic development, it is necessary not only

Growth Strategies to Realize the Management Vision

for governments and large corporations, but also for all players, including SMEs, consumers, and civil society, to join hands and build a strong partnership. We will promote the penetration of this philosophy

Basic sustainability policy

For Mitsubishi Kakoki Kaisha, Ltd. and its group of companies (the MKK Group),"sustainability"means increasing enterprise value by maintaining and improving solid and favorable relations with all stakeholders through the realization of the motto that the MKK Group has steadfastly adhered to since its foundation: Providing high quality products and facilities based on solid technologies rooted in its manufacturing expertise and strict quality management skills.

Basic approach to sustainability

The MKK Group recognizes that the business activities of the MKK Group have an impact on the global environment and local communities and as such conducts its activities in line with the following sustainability approach: Strict observance of business ethics and full compliance with relevant laws and regulations; Improving customer satisfaction; Environmental consideration; Ensuring workplace safety; Transparent disclosure of information; and contributing to society.

Procurement policy

Our group conducts procurement activities based on the following principles.

among employees and business partners.

From Keidanren's"Handbook for Management that Respects Human Rights"

Conducting surveys on business partners based on procurement guidelines

To strengthen sustainable procurement, in April 2025, Mitsubishi Kakoki revised its procurement policy and compiled"the Mitsubishi Kakoki Group Procurement Guidelines", which set out items to be observed in procurement activities, so that our group and our business partners can work on these matters to jointly fulfill social responsibilities.

In May 2025, we explained Mitsubishi Kakoki's basic policy on sustainability and the procurement guidelines established in April of the same year with the cooperation of the suppliers cooperation association (Ryokokai), which consists of about 30 primary suppliers mainly involved in the manufacture of Mitsubishi oil purifiers. Subsequently, questionnaires were distributed to the participating companies mentioned above for the purpose of surveying the actual conditions of each company in the supply chain. After collecting the questionnaires in July, we analyzed the results of the actual conditions of each company and provided individual feedback.

Following this phase 1 survey, for the phase 2 survey on the actual conditions of business partners, selection of the target business partners is underway based on past order amounts, frequency, and other factors, and we plan to conduct the survey starting in FY2026. We will continue to periodically survey actual conditions and promote appropriate procurement activities in line with the guidelines.

Strategy by Business

• Adherence to legal requirements & socially accepted norms

• Fair & transparent transactions

• Building partnerships

• Consideration for sustainability

  In addition, we established the Mitsubishi Kakoki Group Procurement Guidelines in 2025

  Environmental policy

  Mitsubishi Kakoki Group Procurement Guidelines

  
  
  

  Strengthening Value Creation and Foundations to Support Value Creation

  	Apr.	May	Jun.	Jul.	Aug.	Sept.		Oct.	Nov.		Dec.
  Establishing an external environment for promoting human rights due diligence								Prepare for joining the UN Global Compact
  (1) Internal human rights survey
  (2) Establish procurement policy and procurement guidelines	Established (released Apr. 1, 2025)
  (2-1) Survey on the actual conditions of business partners (phase 1)		Briefing session (May 28)				Feedback of results
  		Send out survey collect questionnai	requests and res (by June 30)	Aggregation and	analysis of results
  							Individual actions (inc	company corrective luding on-site visits)
  (2-2) Survey on the actual conditions of business partners (phase 2)							Review an	d finalize criteria	for selecting survey		targets

  • Compliance training

  • Conduct employee questionnaires

  https://www.kakoki.co.jp/en/ assets/images/MitsubishiKakoki KaishaProcurementGuidelines. pdf

  Our group contributes to the preservation of the environment by designing, manufacturing, and installing equipment for industrial use and the improvement of the environment. Recognizing that environmental conservation is one of the most important issues facing mankind today, we work together as a group to continuously reduce our environmental impact while contributing to the realization of an economically sustainable society.

• Being aware of the environmental impact of its activities, products and services, our group will work to prevent environmental pollution and to improve its environmental management systems.

• Our group strictly observes applicable environmental protection laws, regulations and ordinances, as well as other agreements and requirements pertaining to its business activities, products and services.

• Our group will promote initiatives aimed at the environmental preservation, including measures to mitigate climate change and ensure the sustainable use of resources through our products and services.

• To achieve the goals of this policy, we sets company-wide goals, with each division working toward environmental improvements. These objectives and targets are periodically reassessed and revised as necessary.

Schedule for human rights due diligence promotion

Corporate Data

Briefing sessions for business partners held in May 2025

49 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 50

Response to Climate Change

Climate change-related information disclosure

Regarding international climate-related disclosure frameworks, we make disclosures in line with the TCFD recommendations, and since 2022 we have been publishing and disclosing information through the platforms of rating organizations such as CDP.

As we enhanced our initiatives for coping with climate change, the score of CDP improved from B- in FY2023 to B in FY2024.

Governance structure

The Company's Board of Directors recognizes that addressing climate change is one of the most important management issues and makes decisions on important measures not only from the perspective of risk management, but also from the perspective of business creation and supervises the execution of such measures.

In addition, we have identified"creation of social value

Through these activities, we extract and evaluate short-, medium- and long-term company-wide and discuss countermeasures, and the Board of Directors supervises them.

Value Creation Story of the Mitsubishi Kakoki Group

• Risks posed by climate change

related to four strategic businessfields"and"reduction of environmental burdens resulting from business activities," both related to climate change, as material issues, and we are monitoring progress under a promotion system centered on the"Sustainability Committee".

Strategy by Business

Strategy (scenario analysis)

• Overview of the Sustainability Committee

  Chairperson	President and CEO
  Frequency of meetings	Regular meetings: semi-annual (twice a year) Extraordinary meetings: held as needed at the discretion of the chairperson

  Growth Strategies to Realize the Management Vision

  Our group has analyzed the impact of climate change on each business in 2030 under two scenarios: a scenario in which we aim to achieve economic growth while keeping the global average temperature increase below 1.5°C in 2100 compared to pre-industrial times "( 1.5°C Scenario")*1 and a scenario in which we aim to achieve economic growth using fossil fuel as the main source of energy based on the current state and the global average temperature will increase 4.0°C in 2100 compared to pre-industrial times "( 4°C Scenario")*2.

  In the 1.5°C scenario, transition risks include the augmentation of material and energy costs due to the introduction of a carbon tax, resulting in a decline in demand for less energy-efficient equipment and demand from fossil resource-related industries and products for equipment using fossil fuels. On the other hand, demand for products and technologies that meet the decarbonization needs is expected to increase further. We believe that the elemental technologies we have developed are our strengths, and that they can be applied to products and technologies related to hydrogen and the cultivation and utilization of algae in response to decarbonization. We also believe that there are significant business opportunities in this area.

  In the 4°C scenario, we believe there will be opportunities to provide our group's existing products and technologies to meet the needs for resilient equipment and facilities to cope with the risk of severe natural disasters caused by climate change. However, we believe that the physical risk of flooding, sea level rise, and other factors affecting supply chains, such as suppliers and transportation networks, process delays, and reduced work efficiency due to higher average temperatures will be greater.

  *1 Reference: IEA NET Zero by 2050-A Roadmap for the Global Energy Sector, IPCC Sixth Report SSP1-1.9 climate impact information disclosed by the Ministry of the Environment and the Japan Meteorological Agency.

  *2 Reference: IPCC Sixth Report SSP5-8.5 scenario, information disclosed by the Ministry of the Environment and Japan Meteorological Agency.

  • Review, discuss, and approve overall policies and direction of risk management initiatives

  • Review, discuss, and approve annual plans, corrective actions, etc. related to risk management

Risk management

With regard to the management of risks related to climate

Strengthening Value Creation and Foundations to Support Value Creation

change, we cooperate with the existing Risk Management Committee as shown in the chart on the right. Regarding the division of roles, the Sustainability Committee, a standing committee, is responsible for identifying and assessing risks, while the Risk Management Committee determines and monitor the progress of policies for addressing these risks.

While declaring that risks related to climate change are considered subject to company-wide risk management, "the Risk Management Committee"manages risks deemed important by"the Sustainability Committee"as significant company-wide risks and regularly reports on how these risks are addressed to the Board of Directors.

Instruction

Instruction

Reporting

Cooperation

Reporting

Instruction

Reporting

Cooperation

Corporate Data

*3 [Evaluation of impact] Large: Net sales of 5.0 billion yen or more / Medium: Net sales of 1.0 billion yen to less than 5.0 billion yen / Small: Net sales of less than 1.0 billion yen

*4 [Time axis evaluation] Long-term: Impact by 2050 / Medium-term: Impact by 2030 / Short-term: Impact by 2025

*5 Assuming that profit margin is 10%, the impact of the increase in the procurement cost of materials and electricity (decreased profit) is evaluated by using the equation: Impact amount ÷ 10% = Sales amount.

*6 Engineering & Manufacturing

51 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 52

Response to Climate Change

Metrics and targets

We will calculate and grasp the greenhouse gas (GHG) emissions in our value chain, set two targets and forge ahead with initiatives as a step toward the realization of a carbon-neutral society.

1. To achieve net zero GHG emissions in our corporate group (Scopes 1 and 2) by 2050 We will reduce GHG emissions from the plants and offices of our corporate group to virtually zero by 2050. As a step toward achieving this long-term target, we will strive to reduce GHG emissions by 50% or more in comparison with FY2021 by 2030 by generating part of the power used at our major plants from renewable energy based on the solar energy PPA model, etc. in addition to concluding contracts for receiving power originating from renewable energy with a non-fossil fuel certificate.

   • Reduction roadmap (targets) ■ Results

     FY2030

     Achieved FY2030 target ahead of schedule

     (reduction rate: 67%)

     Energy saving, energy conversion, facility and equipment renewal, etc.

     Reduction by 50% or over

     Significant reduction driven by energy conversion centered on our major plants and the introduction of solar energy generation equipment, etc.

     Further energy conversion, introduction of next-generation technologies, emission trading, etc.

     Substantial elimination of emissions

     Scope of calculation expanded due to M&A, but maintained the reduction rate through further energy conversion, etc.

     FY2021 FY2024

     Virtually zero emissions

     
     
     

     0%

     Environment initiatives

     Value Creation Story of the Mitsubishi Kakoki Group

     The Mitsubishi Kakoki Group has been contributing to the preservation of the environment by designing, manufacturing, and installing equipment for the improvement of the environment in the fields of prevention of water pollution, atmospheric pollution, etc. since the start of the chemical industry in Japan. Recognizing that environmental conservation is one of the most important issues facing mankind today, we will continue to work to reduce our environmental impact on a company-wide basis while contributing to the realization of an economically sustainable society.

     Adoption of electric power with a non-fossil certificate and in-house power generation using solar panels

     
     
     

     Growth Strategies to Realize the Management Vision

     Kawasaki Works, Kashima Factory, Yokkaichi Business Office, and dormitories for employees have introduced electric power with a non-fossil certificate, and we are improving the self-sufficiency rate of electric power by installing solar panels at SJ Factory of Kawasaki Works and Yokkaichi Business Office. This introduction of clean electricity has contributed

     Reduction rate

     significantly to the reduction of CO2emissions from our

     50%

     100%

     (Base year)

     (Target)

     FY2050

     (Target)

     corporate group's electricity use. We are promoting the realization of zero-emission plants in our current restructuring of the head office and Kawasaki Works.

     Adoption of carbon-neutral city gas

     We started using the carbon-neutral city gas supplied by Tokyo Gas Co., Ltd. in Kawasaki Works. In addition, we have joined the Carbon Neutral LNG Buyers Alliance and are committed to achieving a carbon neutral society by 2050.

     Carbon-neutral LNG (CNL)

     Strategy by Business

     When the greenhouse gases emitted in the entire value chain are offset by CO2 credits generated through forest conservation, etc., global emissions are considered net zero.

     
     
     

     CO2 emitted in the LNG value chain

Emissions are virtually zero

1. To boost the growth of new business fieldsthat would help solve social issues

Upholding the Mitsubishi Kakoki Group's Management Vision for 2050, we have identified five social issues such as CO2emissions and climate change or circulation of resources and set four strategic business fieldsas a

Calculation of Scope 3 emissions

Source: Website of Carbon-neutral LNG

step toward the realization of a comfortable society, endeavoring to achieve sustainable growth. Three of these strategic businessfields-(1) Business for realizing a sustainable recycling society, (2)

Hydrogen-based clean energy business and (3) Business of saving labor and energy utilizing digital technology

-shall lead to the reduction of CO2emissions in the whole value chain of our group and we are forging ahead with these initiatives by positioning them as core businesses to be established by 2035.

1. is a business of recycling waste produced by industry and households, for example, by collecting biogas from organic waste, recycling plastic waste as part of valuable material recycling or collecting CO2as part of carbon recycling. We will work toward developing this business by utilizing and improving our technologies such as solubilization technologies, biogasification technologies and separation technologies, including adsorption separation technology and membrane separation technology.

2. is a business related to the generation, use and application of hydrogen-based clean energy that contributes to decreasing CO2emissions, such as the production of green hydrogen and blue hydrogen, transport, storage and supply in the hydrogen supply chain and creation of energy originating from living organisms such as algae. We will work toward developing this business by utilizing and improving our technologies such as renewable energy generation technologies, hydrogen production technologies, high-efficiency hydrolysis technologies, hydrogen storage alloy technologies, and cultivation and extraction technologies.

3. are E&M and O&M businesses that utilize digital technology to contribute to the minimization of energy consumption and waste at plants, and we aim to demonste the value of our technologies, those that automate and enhance the efficiency of engineering, procurement and construction (EPC), 3D engineering and RPA, by utilizing and improving them across the company in a cross-functional manner. We will strengthen the business of saving labor and energy by centering on the newly established"Technology Development & Production Division"and"Digital Transformation Department", through company-wide collaboration.

In addition to treating these businesses as our mainstay businesses, we will work toward the establishment of a new business portfolio and forge ahead with our initiatives in order to achieve net sales of 100.0 billion yen coupled with the existing businessfields by 2035.

Based on the TCFD recommendations, we began calculating Scope 3 emissions in FY2024 and have calculated Categories 2, 3, 4, 6, and 7. We will continue to expand and refine the scope of our calculations and consider specific measures to reduce emissions in order to further reduce supply chain emissions for the entire corporate group.

Strengthening Value Creation and Foundations to Support Value Creation

Scope3 Category Emissions (t-CO2) Scope3 Category Emissions (t-CO2)

Investment in environmental measures

Corporate Data

We contribute to the realization of a sustainable society, by continuing the investment in SDG-related bonds. In FY2021 we first made such an investment, and have an investment record of a total of eight kinds of bonds.

Status of acquisition of certification system

We are promoting registration in the SDG-related certification system of each municipality. At present, our company is registered as"Kawasaki SDGs Gold Partner"(the most highly ranked) in Kawasaki City and as "Y-SDGs superior"(the second most highly ranked) in Yokohama City.

53 MITSUBISHI KAKOKI Group Integrated Report 2025 MITSUBISHI KAKOKI Group Integrated Report 2025 54

Measures for Preserving Qualit and Safet

Safet, Qualit & Environmental Management Division

We will fortify the two bases: quality and safety, and then promote the realization of our management vision.

Education of employees about quality

Our company conducts systematic

education about the KS and Observance

Value Creation Story of the Mitsubishi Kakoki Group

Education about quality/environment management systems

Koji Yamamoto

Executive General Manager of Safety, Quality & Environmental Management Division

In order to make quality as consistent as possible, we established the standards called"Kakoki Standards (KS)" and promote all employees to follow the KS. To respond to business changes and issues inside and outside our company, we continuously develop and improve standards. Quality and safety are also KPIs of material issues in our medium-term management plan, and we will strengthen relationships of trust with customers through the achievement of these KPIs.

documents for quality/environment management systems. In November, which is the nationwide quality month, we hold an online session about management systems for all employees, contractors, temporary workers, and part-timers, to deepen their understanding of the importance of"observance of rules,""human resource development,""verification

Communication about risks

of rules

Risk-free climate

Verification

Human resource development

500

400

300

200

100

0

2019

479

383 382

402

423

328

2020 2021 2022 2023 2024

Quality policy

"We always satisfy the requests from clients, laws, regulations, and standards, and offer reliable, economical, safe, and worry-free products and services by each deadline."

Our corporate group set the above quality policy based on the ISO9001, a certification for quality assurance

work,"and"documents and records" for fostering the risk-free climate and further enhancing the awareness of quality and the importance of rules.

work

Growth Strategies to Realize the Management Vision

*No. of views of the message board in the Intranet

management systems, and conducts group-wide activities, including order receipt, design, purchase, production, construction, tests, inspection, after-sales services, and development, with the aim of living up to the trust of clients under the policy of putting importance on clients and satisfying them.

Risk assessment for products

QMS documents

Communication

of managerial resources training

•Deployment of committee members

•Management of infrastructure

•Management of the working environment

•Resources for monitoring and measurement

•Knowledge, technology, skills

Recognized

Utilization and management Abilities/education and

Control of non-

Manufacturing Tests and conforming

inspection products

Control of non-

conforming Design and Purchase and

products development outsourcing

Execution plans

Planning of changes

Risks and opportunities

Quality policy

Roles, responsibilities, and authority of each organization

Needs and expectations from stakeholders

QMS and its processes

Clarification of management issues (inside and outside our company)

Scope of application of the QMS

1. Situation of our corporate group

Quality management system

3. Plan

6. Performance evaluation

5. Embodiment of products

4. Support

Roles, responsibilities,

Quality policy and authority of each organization

2. Leadership

Commitment

Monitoring, measurement, analysis, and evaluation

Internal audit Management review

7. Improvement

Non-conformity and corrective measures

Continuous improvement

Our company reforms our business portfolio under the management vision. Various risks can be assumed in new business fields and the development of new products.

Quality/Environment assurance management

Responsibility and management system

Requests from clients about products and services

The management systems for quality assurance and the environment of our corporate group are managed by the Safety, Quality & Environmental Management Division, which is directly controlled by the president as a secretariat, under the leadership and commitment of the president and the senior management.

We set group-wide policies for quality and the environment and performance indicators (KPIs) for each fiscal year, and each business division sets KPIs and concrete measures in management programs, with the aim of maximizing our performance. We adopted a system in which the secretariat and quality/environment managers monitor and evaluate our business performance on a quarterly basis. Based on the evaluation results, we hold a meeting of the Quality/Environment Committee with the president serving as general manager, to share the situation with respect to annual KPIs (quality: costs for dealing with non-conformity and the customer satisfaction level: environment: sales from orders related to SDGs and technological development), information on non-conformity, the status of compliance with environment-related laws and regulations, the evaluation report on activities of quality and environment management programs, etc. as well as to deliberate how to respond to serious complaints about products or services and improve quality. Group companies, too, attend the meeting to share information and unify our measures.

Chart of processes of the quality management system (QMS)

Our company makes company-wide efforts to reduce and prevent risks through the strategy for rationalization before receiving orders and the management of serious risks based on the control of trial products and changes after receiving orders. In addition, we adopted the phase-gate process in development meetings in 2021. We carry out risk assessments and environmental impact assessments to judge whether or not to release products and evaluate them, and support the realization of the management vision.

Strategy by Business

Role of the Safety & Health Management Office

The Safety & Health Management Office believes that the creation of a safe and hygienic work environment and the maintenance and promotion of health by employees are essential for corporate activities to provide customers with safe and reliable products and services, and that promoting safety, hygiene, and health management activities and striving for prevention are important foundations supporting our business activities and our responsibility.

Code of conduct

• To realize a working environment where employees can work safely without worry, and strive to maintain and improve the health of each employee

  Major tasks

• Group-wide education on safety for all employees (June every year)

• Meetings regarding safety measures (once a quarter)

• Safety and health patrol by executives

• Efforts to make National Safety Week and Health Week known to all employees

• Items regarding the operation of clinics and occupational health

  Examples of our measures

  ➊ During Safety and Health Weeks, we encourage employees and their family members to submit slogans and posters about safety, and commend those who have submitted excellent works. Excellent works are displayed in a space around the entrance of Kawasaki Works, and introduced in in-house newsletters, message boards, etc. to attract attention from employees and raise their awareness of safety.

  ❷ We are working to raise awareness about taking regular health checkups and to improve the stress check participation rate in order to maintain and improve employee health.

• Regular health checkups (FY2023: 92.7%, FY2024: 96.5%)

• Participation in stress checks (FY2023: 83.5%, FY2024: 84.6%)

  ❸ We strive to improve occupational safety as an important foundation supporting our corporate activities to provide customers with safe and reliable products and services.

• Reduce the number of accidents requiring at least 4 days off from work to 0 per year. (FY2023: 0, FY2024: 1)

• Maintain the number of serious accidents (fatal accidents) at 0 per year. (FY2023: 0, FY2024: 0)

Strengthening Value Creation and Foundations to Support Value Creation

Corporate Data

(Results of the quality management system)Provision of products and services, customer satisfaction level

Analysis and utilization of the results of surveys on customer satisfaction level

After delivering products and equipment, our company surveys customer satisfaction levels, and conducts the evaluation and analysis of the results. This reflects our commitment to constantly improving quality so that we deliver products and services that satisfy customers and that are safe and worry-free. The purpose of this initiative is also to provide feedback on important items such as quality and response to issues to improve order receiving activities for future product development.

55 MITSUBISHI KAKOKI Group Integrated Report 2025

100

Average score in customers'evaluation (points)

95

90

85

80

75

70

65

60

Variation in customers'evaluation

1. Products and services

2. Marketing operations

3. Design and project management

4. Construction sites

5. After-sale services Overall evaluation

2019 2020 2021 2022 2023 2024

Fiscal year

Items on which customers put importance

FY2021 FY2022 FY2023 FY2024

Quality

Safety

Performance/ user-friendliness

Response of staff

in charge

Skills to manage designs and construction work

Ability to cope with trouble

Delivery date Appropriateness of prices

Past achievements

0 20 40 60 80 100

Customers'weight of importance on the item

MITSUBISHI KAKOKI Group Integrated Report 2025 56

Human Resources Strateg

Planning & Administrative Division

We will help realize our management vision and complete our medium-term management plan by executing human

Initiatives for securing diversity

Value Creation Story of the Mitsubishi Kakoki Group

In the VUCA*1 environment, we strive to grow our corporate group sustainably by actively hiring diverse personnel and complementing each other. We are primarily engaged in the following as part of these efforts.

Takaharu Negi

Executive Officer and Division Director, Planning &

Administrative Division

resources strategies.

Growth Strategies to Realize the Management Vision

We support each business division in attaining respective goals, in order to realize our management vision and complete our medium-term management plan, and strive to fortify our base as a core division for supporting the group-wide business administration system. In order to secure and train human resources, which are managerial resources, we will adopt new systems and reform existing systems, to realize a working environment or workplace where employees can have a good work-life balance.

*1 VUCA = Volatility, Uncertainty, Complexity, and Ambiguity

Principles for personnel affairs

We believe that employees are the most important managerial resources for realizing the corporate philosophy of the Mitsubishi Kakoki Group:"to contribute to the ongoing development of society by providing high-quality products and facilities based on solid technologies rooted in its manufacturing expertise and strict quality management skills."We aim to realize our corporate philosophy through the following principles for personnel affairs.

➊ Develop personnel who possess advanced skills and professionalism and put importance on the harmony with other people and the observance of rules

❷ Foster a work climate with a sense of unity

❸ Develop a working environment where employees can work safely and healthily with peace of mind

Strengths / Positives

Awareness survey targeted at all employees

Weaknesses /

Challenges

Basic policy for human resources strategies

Based on the principles for personnel affairs mentioned above, we adopted a new human resources system based on the role-based action evaluation approach in 2018, in which activities (processes) for producing expected results

Promoting the active participation of women

We recognize that this is an issue due to the low ratio of women in our business category, and in accordance with the Act on Promotion of Women's Participation and Advancement in the Workplace, we will work to increase the ratio of women to all employees and continue to focus on hiring women and promoting them to management positions. Recruitment of new graduates

We aim to be a vibrant company by hiring at least ten new graduates each year through continuous new graduate recruitment activities.

Recruitment of mid-career workers/foreign national employees We recruit necessary personnel for business operations who can immediately work on actual tasks, regardless of nationality, gender, age, etc.

Employment of people with disabilities

In order to fulfill our social responsibility, we promote the employment of people with disabilities by engaging them in rewarding work that makes use of their strengths.

Return-to-work system

We established a"return-to-work system"for former employees who resigned for a compelling reason, such as child rearing and nursing care for family members, which are inevitable in life.

Strategy by Business

Human resource development and strengthening of organizational capabilities

for respective roles are evaluated and linked to treatment, and are promoting the development of autonomous human resources capable of responding to changes in the environment.

With regard to the development of next-generation management personnel, we have also formulated a human resource pool and training plan with an eye toward succession, and we run a pooled human resource training program tailored to evolving business and organizational needs.

Through continuous efforts with this system, we aim to

Human resources strategy

Education and training systems

In order to develop independent personnel who can recognize their roles proactively and exert their creativity, we make continuous efforts to offer opportunities to exert abilities through business operations while operating the education/training system shown in the right table. In addition, we support each division and each employee in honing their capabilities on a daily basis in accordance with the education and training plans, which are formulated for each fiscal year.

Training of new employees

New employees undergo group training and on-site practice for four months after joining our company, and then they are assigned to the appropriate sections while taking into account their preferences. With this system, we close the gap among sections, and enhance employee engagement.

In-house job posting

To encourage employees to take on new challenges within the organization, in FY2022, we introduced an in-house job posting system that supports employees in proactively choosing their careers. This system allows employees to maximize their abilities and gain opportunities to experience diverse roles. The system also positively impacts organizational strength by enabling employees to work in the roles they want.

Reform of the organizational climate

We have established the Committee for the Promotion of Organizational Climate Reform to promote the corporate philosophy and management vision among all employees, regularly grasp employees'awareness through an awareness survey (engagement survey) targeted at all employees, and discuss and implement measures necessary for cultivating a better organizational climate.

Focus points for human resource development

Abilit to act / Autonom Communication skills

Strengthening Value Creation and Foundations to Support Value Creation

Self-directed seeking / Independent thinking / Technical capabilit / Ethical standards

realize our management vision, broadly implement human resources strategies in parallel with other measures, including the reform of our corporate culture, and link them with our management strategy and financial strategy.

Management strategy

Principles for personnel affairs

Financial strategy

Improving labor productivity and creating a comfortable workplace environment through the workstyle reform

Corporate Data

• To enhance employee satisfaction and productivity, we have introduced systems for teleworking, electronic approval, and online meetings to create a workplace environment that enables more efficient work execution.

• In the restructuring of the head office and Kawasaki Works, a workplace consultant has been engaged to examine new ways of working, with younger employees taking the lead in further improving employee engagement.

• We have maintained better systems than those specified in law, such as a system for allowing employees to take paid special leave when their spouses give birth to a child and paid nursing-care or nursing leave by using untaken annual paid holidays, a shortened working hours system for childcare and nursing-care, and other childcare and nursing-care systems.

We seek to create a comfortable workplace environment for all demographics, regardless of gender.

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