COMPANYPROFILE

MRI is founded as a commemorative project for the 100th anniversary of the Mitsubishi Group

Diamond Computer Service (now Mitsubishi Research Institute DCS) becomes part of the MRI Group

3,700

20042009

2016

¥27.2billion

¥27.7billion

¥32.5billion

¥73.4billion

¥86.9billion

1970 2004 2009 2014

12

740

Consolidated subsidiaries

Number of MRI researchers

Think tank andconsulting services

IT services

Mitsubishi ResearchInstitute DCS

Mitsubishi Research Institute

History of the MRI Group

MRI is listed on the second section of the Tokyo Stock Exchange (promoted to the first section in the following year)

The MRI Group’s growth path is accelerated under a six-year plan leading up to its 50th anniversary in 2020.

Consolidated

Non-consolidated

Employees of group companies

Net sales

Our management philosophy calls for us to contribute to the advancement of society in the 21st century through

corporate activities that utilize the diverse strengths and unique knowledge and insights of the Mitsubishi

Research Institute Group. By working with our clients to anticipate future needs and contribute to sustainable

social, regional, and corporate development, we will continue to co-create a brighter future.

Founded in 1970, the MRI Group has continually used the extensive knowledge and networks built by its

highly skilled professionals over many years to offer solutions from a neutral, scientific and objective perspective,

and to support the implementation of those solutions. Group-level collaboration with Mitsubishi Research

Institute DCS Co., Ltd., which excels in the area of IT services, has allowed us to expand the scope of our busi-

ness activities to include solutions based on the use of information systems and innovative technologies. We will

continue to respond effectively to the expectations of society and our clients by providing integrated services

ranging from think tank and consulting services to information and communications technology (ICT) consulting.

In recent years there have been amazing new advances in various fields of technology, including ICT. This new

technology is being rapidly implemented in society. People look with a mixture of expectation and trepidation

toward a future in which society will be dramatically transformed by the networking of everything, and by the use

of artificial intelligence (AI) and robots in place of human beings.

As the future grows increasingly difficult to predict, the role of the MRI Group as a provider of integrated solu-

tions centering on think tank services will become more important than ever. The MRI Group will continue to take

up the challenge of building a better society by finding solutions to the problems of society. We will do this by

expanding our business areas to include not only planning, but also implementation. In other words, by being not

just a think tank, but a “Think & Act tank.”

We look forward to the support of all stakeholders for our ongoing efforts to fulfill our social mission.

Management Philosophy

(1) Use wisdom and information to contribute to society

(2) Maintain integrity and fairness in business activities

(3) Apply integrated strengths by combining the ability of

diverse individuals

Takashi MorisakiPresident and Representative Director Mitsubishi Research Institute, Inc.

October 2017

Company Name Mitsubishi Research Institute, Inc.

Head Office 10-3, Nagatacho 2-Chome, Chiyoda-ku,Tokyo 100-8141, Japan

Date of Establishment May 8, 1970

President and Representative Director

Takashi Morisaki

Chairman of the Institute Hiroshi Komiyama

Capital 6,336 million yen

Number of Employees 3,741 (Consolidated), 896 (Non-consolidated)(As of September 30, 2016)

URL www.mri.co.jp/english/index.html

Main Associated Companies

Mitsubishi Research Institute DCS Co., Ltd.MRI Business, Inc.MRI Research Associates, Inc.MRI Value Consulting & Solutions Co., Ltd.MD Business Partner Co., Ltd.Touhoku Diamond Computer Service Co., Ltd.OPT JAPAN Co., Ltd.UBS Co., Ltd.IT-ONE Co., Ltd.DCS Information Technology (Shanghai) Co., Ltd.MRIDCS Americas, Inc.HR Solution DCS Co., Ltd.

The Mitsubishi Research Institute (MRI) Group is working toward the co-creation of a brighter future by finding solutions to meet the needs of its clients and society.

MRI is founded as a commemorative project for the 100th anniversary of the Mitsubishi Group

Diamond Computer Service (now Mitsubishi Research Institute DCS) becomes part of the MRI Group

3,700

20042009

2016

¥27.2billion

¥27.7billion

¥32.5billion

¥73.4billion

¥86.9billion

1970 2004 2009 2014

12

740

Consolidated subsidiaries

Number of MRI researchers

Think tank andconsulting services

IT services

Mitsubishi ResearchInstitute DCS

Mitsubishi Research Institute

History of the MRI Group

MRI is listed on the second section of the Tokyo Stock Exchange (promoted to the first section in the following year)

The MRI Group’s growth path is accelerated under a six-year plan leading up to its 50th anniversary in 2020.

Consolidated

Non-consolidated

Employees of group companies

Net sales

An integrated think tank dedicated to finding solutions for the problems of society and our clients

Mitsubishi Research Institute, Inc. (MRI) was founded in 1970 as a commemorative project to mark the centenary

of the Mitsubishi Group. Since then, the MRI Group has played a trailblazing role in fields ranging from economics

and business management to public policy, science and technology.

In addition to its consulting activities, including surveys, research, policy support and other think tank ser-

vices, as well as corporate management strategy support, the MRI Group today offers services in partnership

with Mitsubishi Research Institute DCS, which provides ICT solutions. Through these activities, we have built an

excellent reputation as a comprehensive think tank group with the ability to provide integrated solutions to the

problems of society and our clients.

1

Features and Strengths of the MRI Group

Integrated Services for a Diverse Client Base

Neutrality is one of our core values. We are not confined to any individual field, and we offer our services to

a wide and well-balanced mixture of clients in fields ranging from governments and financial institutions to

industries. This is an important feature of the MRI Group.

Problem-solving through Integrated Strengths

The MRI Group maintains a well-balanced set of specialized capabilities in the areas of think tank and

consulting services and ICT solutions. We provide high-added-value services by combining these

capabilities to create integrated strengths.

We find solutions for the problems of society and our clients from a total perspective, including not only

the proposal of solutions and assistance at the design stage, but also the proposal and implementation of

wide-ranging solutions and participation as a business partner.

Governments

Our services for public sector clients include policy proposal and implementation support. We provide these services at all levels of government, from central government agencies to local government organizations. One of our strengths in this area is our ability to cover key policy areas and themes thanks to our extensive knowledge of specialized fields.

Financial Institutions

Our extensive experience and technical expertise in the area of systems development for financial institutions allows us to provide support for a variety of clients, including banks and credit card companies. We are also using our work in financial institutions as a stepping-stone for diversification into other business areas, by applying advanced technology and expertise accumulated through our work on financial systems.

Industries

We forecast changes in the business environment based on anticipated changes in society, and we provide services that encompass new technology. In addition to business strategy support and new business development, we also help our clients to create enhanced value through the use of AI and big data.

Governments

24%Industries

32%

Financial institutions

44%

Net sales by customer segments

(year ended September 2016)

2

Diverse Professionals

The most important management resource for the MRI Group is our diverse line-up of highly skilled

professionals in fields that include medicine, nursing, welfare, regional revitalization, the environment,

energy, disaster prevention and safety, space science and advanced technology, and ICT and big data.

These professionals find solutions to complex problems through activities based on multidisciplinary

collaboration. Three-quarters of our professionals have backgrounds in the natural sciences, and most

have masters or doctorate degrees. Another feature of our professional staff is their active participation in

academic societies.

Professionals working for Mitsubishi Research Institute DCS have extensive experience with

information systems and project management and are able to reach solutions for ICT-related problems.

The capabilities of our professionals are apparent from their wide-ranging qualifications.

Specialist Fields of MRI Group Researchers

Persons Qualified in Information Processing Technology

IT strategists 24

System architects 84

Project managers 58

Network specialists 68

Database specialists 67

Mechanical engineering/ aerospace

Electrical/electronic engineering/ communications

Information system science

Energy/nuclear power/ physics

Chemistry/biology/ agriculture and forestry/geologyIndustrial engineering/

management engineering

Environmental engineering/environmental science

Others

Economics

Management/commerce

Law/political science/policy

Social education

Others

Resources/materials/metals

Applied mathematics/mathematics

(As of September 30, 2016)

(As of October 2016)

Construction/ civil engineering/ urban engineering

Social sciences 190

Natural sciences 550

Total 740

3

Our Approach to Providing Value

—Think & Act: Solutions from Planning to Implementation—

In these times of growing uncertainty about the future, clients need us not only to identify problems and find solu-

tions, but also to provide support for the implementation of those solutions. To provide value to society and our

clients, we must offer integrated services at all stages from concept to action. Our mission is to co-create a

brighter future. We aim to fulfill that commitment by anticipating future trends and working with our clients to

achieve sustainable regional and corporate development. We begin by exploring and envisioning the future. We

then present specific future-oriented measures, and create the future.

“Think & Act”—these words encapsulate this integrated approach based on initiatives at all stages from plan-

ning to implementation. The concept involves the provision of packages consisting of the “Think” stage, including

recommendations, planning and design, and solutions, and the “Act” stage, which involves support to ensure

that solution can be sustained.

The strengths that enable us to form these services and ensure their effectiveness are our extensive knowl-

edge of fields ranging from social trends to advanced technology, methods, experience and expertise accumu-

lated through the solution of diverse problems, and our ability to implement solutions through the use of ICT.

The expansion of our role to the “Act” stage is contributing to the diversification of our activities. In addition,

experience and knowledge gained through our direct involvement in commercialization processes is fed back to

the “Think” stage, further enhancing the vitality of our activities at that level.

Think & Act

From planning to implementation

Think tank and consulting servicesBusiness

Activities

IT services

Policy recommendations

Strategy proposals

Provision of ICT solutions

Implementation support/ business

participation

4

Our Organization

Think Tank UnitThe role of the Think Tank Unit is to approach various societal issues from a comprehensive and overarching perspective, and to contribute to the discovery of answers on levels ranging from the proposal of solutions to consensus formation and the creation of business-based solutions. These activities cover a wide range of fields, including infrastructure, healthcare, the environment and energy, science and technology, and regional development. The Customer support provided by the Think Tank Unit is based on the combined capabilities of experts in these fields.

Consulting UnitThe Consulting Unit assists clients to innovate in the areas of management reform, organizational transformation, new business development, etc., by taking full advantage of our strong understanding in economics, social conditions, and government policies in Japan and overseas, as well as our knowledge of technology trends relating to ICT and other fields. In addition to general management consulting, the Consulting Unit also provides consulting services based on new technologies. Examples include process innovation support based on the effective use of IoT (Internet of Things) in manufacturing industries, which are the source of Japan’s competitiveness, and the application of AI and robotics to services in the financial sector. These consulting services are helping clients to achieve dramatically improved levels of performance.

Research and Development UnitThe Mission of our Research and Development Unit is to fortify our capacity to develop concepts and strengthen our R&D capabilities. Staff members work closely with the Research Fellows and conduct joint research and development activities involving the entire Mitsubishi Research Institute, individual group companies and companies outside of the MRI Group. By analyzing long-term social trends, macroeconomic trends, and trends in advanced technology, the Research and Development Unit is able to prioritize societal problems and provide fixed-point forecasts. The staff also uses AI and other new advancements to develop technology, including applications, for use in all group business activities. The Research and Development Unit also aims to become an open innovation hub for the solution of societal issues by forming and expanding external networks, including the Platinum Society Research Association, and the Innovation Network for Co-creating the Future.

Corporate Administration UnitThe Corporate Administration Unit implements and supports corporate management policies and provides infrastructure functions for company operations. Our corporate philosophy requires us to maintain integrity and fairness in business activities. We therefore regard the reinforcement of corporate governance and compliance as an important management priority. The Corporate Administration Unit is continually developing and improving these functions.

5

効果的な疾病予防で健康で生き生きと暮らせる社会ウェルネス

超高齢社会を迎え、健康や医療・介護などへの関心はますます高まっています。より健康で生き生きと暮らすための制度やサービスの実現が喫緊の社会課題となっています。最近では個人のライフスタイルや健康状態の変化に応じたきめ細かい予防・医療対策が注目されつつあります。当社では、健康・予防に関わる政策研究から、民間企業の事業支援にまで幅広く取り組んでいます。例えば、保険者や民間企業と連携し、糖尿病リスクの高い方にウェアラブル端末と専門家のアドバイスを組み合わせて提供し、より効果的・効率的な疾病予防を実現する実証事業を行っています。

地域エネルギーを活用した地域創生地域創生

地域課題を持続的に解決するために、エネルギー、農業、観光などの地域資源の活用に向けた包括的支援サービスへのニーズが高まっています。当社はこうした声に応えて、地域エネルギー活用、地域産業振興、CCRC※事業展開に関するコンサルティングや事業参画を行っています。例えば、兵庫県多可町では、3社のパートナー企業と共同で多可町安田郷メガソーラー発電合同会社を設立し、発電事業を開始しました。本事業は、「多可町まち・ひと・しごと創生総合戦略」策定や特産品開発、地域ブランディングなどにも発展しています。農業分野にも注力しており、陸前高田市の植物工場の支援を行うなど、震災復興地域をはじめとして各地で農業産業化を支援しています。

次世代の道路交通システムの開発支援モビリティ

交通事故、渋滞、環境負荷といったクルマ社会の課題解決には、クルマ単体の高度化に加え、周辺事業、法制度、インフラなどの整備が必要です。なかでも新技術を活用した次世代の交通システムに期待が集まっています。当社は、モビリティを取り巻くさまざまな領域で、ICTを中心とした新技術動向やニーズ調査、自動車関連の技術開発支援、新事業開発支援などを行っています。例えば、自動運転技術やその基盤となる次世代デジタル地図の実用化研究、クルマとインフラが通信しあうETC2.0やクルマ向け情報提供サービスのテレマティクスの活用支援、カーシェアリングなどのモビリティサービスのコンサルティングなど、交通システムの進化に向けたサービスを提供しています。

多様な働き方と企業競争力の両立教育・人財育成

労働人口が減少し、人財獲得競争が過熱することで、自社に合った優秀な人財を高い精度でスピーディに確保することが課題となっています。そこで重要となるのが、一人ひとりの能力・個性を活かした活躍機会を描き、企業の競争力に結び付ける人財マネジメントです。当社では、AIを活用した「エントリーシート優先度診断サービス」を開始しました。マイナビと共同で提供しているこのサービスでは、膨大なエントリー情報から人物像や採用優先度をAIが導き出し、新卒採用の精度と速度向上を実現します。当社は、採用領域にとどまらず、幅広い人財マネジメントサービスを引き続き展開していきます。

※Continuing Care Retirement Communityの略。居住者が生涯活躍　できるまちという意味。

医師など

多様な働き方と企業の競争力を両立

採用

・スキル・人物像の可視化・自社への適合度評価

研修

・不足スキルの可視化・研修成果の評価

チーム組成

・メンバーの相性評価・スキル要件の組み合わせの最適化

配属・異動

・キャリアプランに即した必要な経験の提案・全社視点での異動の最適化

人財マネジメントのさまざまな側面でのサービス展開イメージ

糖尿病予防対策の実証事業のイメージ

企業保険者

診療・指導保健指導

さまざまな新技術で実現する次世代道路交通システム

次世代の道路交通システム

自動運転技術 デジタル地図の高度化

ITSを活用した新技術

ETC2.0による各種情報提供

車どうしが通信する安全支援システム

多可町安田郷メガソーラー発電所

写真提供：多可町安田郷メガソーラー発電合同会社

モニタリング／アラート

モニタリング／アラート

データ

対象者

ウェアラブル端末

データベース

具体的な取り組み例

76

Wellness

Education, Human Resource Development

Creating a Society in which People Can Enjoy Vibrant Lives Thanks to the Effective Prevention of Disease

Linking Workstyle Diversity to Business Competitiveness through Education

Japan is becoming a super-aged society. This is reflected in growing concern about health, healthcare, nursing care, and other issues. There is now an urgent need for the development of systems and services to enable people to enjoy more vibrant lives. Recently there has been intense interest in fine-tuned disease prevention and healthcare approaches linked to indi-viduals’ lifestyles and changes in health statuses. The MRI Group is extensively involved in activities ranging from policy research relating to healthcare and dis-ease prevention, to support for the activities of private sector companies. For example, we are collaborating with insurers and private sector companies on a trial of a more effective and efficient prevention system. People with a high risk of diabetes are provided with expert advice, together with a wearable device.

Competition for human resources is intensifying as Japan’s working population shrinks. Companies need a fast, accurate way to recruit talented people who match their needs. The key factor in the context of human resource management is teaching individuals to use opportunities to realize the full potential of their abilities and attributes, which is connected to a com-pany’s competitiveness. The MRI Group has launched an application form prioritization service based on the use of AI. This ser-vice, which we provide in collaboration with Mynavi Corporation, improves the speed and accuracy of new graduate recruitment by using AI to extract pro-files and establish priorities from large numbers of application forms. We will continue to develop a wide range of manage-ment services covering not only recruitment, but also various other aspects of human resource management.

Trial Project for Diabetes Prevention

Services for the Various Aspects of Human Resource Management

Corporate health insurance scheme

member

Patient

Database

Monitoring, alerts

Data

Wearable device

Physicians, etc.

Monitoring, alerts

Recruitment Training

• Visualization of skills/personality

• Assessment of suitability for the employer

• Visualization of skill deficits

• Assessment of training outcomes

Team formation Assignment, transfers

• Assessment of member compatibility

• Optimization of skill requirement combinations

• Proposal of experiences required for career plans

• Optimization of transfers from a corporate perspective

Combining diverse workstyles with business competitiveness

Specific Initiatives

Health guidance

Health check, guidance

6

効果的な疾病予防で健康で生き生きと暮らせる社会ウェルネス

超高齢社会を迎え、健康や医療・介護などへの関心はますます高まっています。より健康で生き生きと暮らすための制度やサービスの実現が喫緊の社会課題となっています。最近では個人のライフスタイルや健康状態の変化に応じたきめ細かい予防・医療対策が注目されつつあります。当社では、健康・予防に関わる政策研究から、民間企業の事業支援にまで幅広く取り組んでいます。例えば、保険者や民間企業と連携し、糖尿病リスクの高い方にウェアラブル端末と専門家のアドバイスを組み合わせて提供し、より効果的・効率的な疾病予防を実現する実証事業を行っています。

地域エネルギーを活用した地域創生地域創生

地域課題を持続的に解決するために、エネルギー、農業、観光などの地域資源の活用に向けた包括的支援サービスへのニーズが高まっています。当社はこうした声に応えて、地域エネルギー活用、地域産業振興、CCRC※事業展開に関するコンサルティングや事業参画を行っています。例えば、兵庫県多可町では、3社のパートナー企業と共同で多可町安田郷メガソーラー発電合同会社を設立し、発電事業を開始しました。本事業は、「多可町まち・ひと・しごと創生総合戦略」策定や特産品開発、地域ブランディングなどにも発展しています。農業分野にも注力しており、陸前高田市の植物工場の支援を行うなど、震災復興地域をはじめとして各地で農業産業化を支援しています。

次世代の道路交通システムの開発支援モビリティ

交通事故、渋滞、環境負荷といったクルマ社会の課題解決には、クルマ単体の高度化に加え、周辺事業、法制度、インフラなどの整備が必要です。なかでも新技術を活用した次世代の交通システムに期待が集まっています。当社は、モビリティを取り巻くさまざまな領域で、ICTを中心とした新技術動向やニーズ調査、自動車関連の技術開発支援、新事業開発支援などを行っています。例えば、自動運転技術やその基盤となる次世代デジタル地図の実用化研究、クルマとインフラが通信しあうETC2.0やクルマ向け情報提供サービスのテレマティクスの活用支援、カーシェアリングなどのモビリティサービスのコンサルティングなど、交通システムの進化に向けたサービスを提供しています。

多様な働き方と企業競争力の両立教育・人財育成

労働人口が減少し、人財獲得競争が過熱することで、自社に合った優秀な人財を高い精度でスピーディに確保することが課題となっています。そこで重要となるのが、一人ひとりの能力・個性を活かした活躍機会を描き、企業の競争力に結び付ける人財マネジメントです。当社では、AIを活用した「エントリーシート優先度診断サービス」を開始しました。マイナビと共同で提供しているこのサービスでは、膨大なエントリー情報から人物像や採用優先度をAIが導き出し、新卒採用の精度と速度向上を実現します。当社は、採用領域にとどまらず、幅広い人財マネジメントサービスを引き続き展開していきます。

※Continuing Care Retirement Communityの略。居住者が生涯活躍　できるまちという意味。

医師など

多様な働き方と企業の競争力を両立

採用

・スキル・人物像の可視化・自社への適合度評価

研修

・不足スキルの可視化・研修成果の評価

チーム組成

・メンバーの相性評価・スキル要件の組み合わせの最適化

配属・異動

・キャリアプランに即した必要な経験の提案・全社視点での異動の最適化

人財マネジメントのさまざまな側面でのサービス展開イメージ

糖尿病予防対策の実証事業のイメージ

企業保険者

診療・指導保健指導

さまざまな新技術で実現する次世代道路交通システム

次世代の道路交通システム

自動運転技術 デジタル地図の高度化

ITSを活用した新技術

ETC2.0による各種情報提供

車どうしが通信する安全支援システム

多可町安田郷メガソーラー発電所

写真提供：多可町安田郷メガソーラー発電合同会社

モニタリング／アラート

モニタリング／アラート

データ

対象者

ウェアラブル端末

データベース

具体的な取り組み例

76

Mobility

Regional Revitalization

Support for the Development of Intelligent Transportation Systems (ITS)

Stimulating Growth through Local Energy Utilization

Solving traffic problems, including accidents and conges-tion, and realizing a sustainably mobile society will require not only vehicle technology, but also new business models, infrastructure, and regulation. As a key technology, ITS will be a significant solution to the world’s future mobility. The MRI Group is supporting various mobility business developments including research studies on market trends and the cutting-edge technologies. The MRI Group is also supporting the development of automotive technologies and new business models. For example, we conduct research into automated driving technology and the advanced digital map database technology, which is the digital infrastructure that will support automated driving. We also support the progress of technology and business through the utilization of the vehicle-to-infrastructure com-munications system ETC2.0 in Japan, and the develop-ment of telematics services to provide information to drivers. In addition, we provide consultation for realizing car sharing and other mobility services. Through these ser-vices, we are contributing to the evolution of future trans-portation systems.

There is a growing need for comprehensive services to support the utilization of regional resources, such as energy, agriculture, and tourism, to provide sustainable solutions to regional problems. The MRI Group is responding to these needs through consultation relating to regional energy utiliza-tion, the development of regional industries, and the development of CCRC* schemes. We also participate in various projects. For example, in the community of Takacho in Hyogo Prefecture, we have established Takacho Yasudago Mega Solar Hatsuden LLC and commenced a power generation project with three partner companies. This project has led to the formu-lation of an integrated revitalization strategy for the community, its people, and their jobs in Takacho, as well as the development of local products, regional branding, and other benefits.*Continuing Care Retirement Community

We are also focusing on the agricultural sector, including support for the industrialization of agriculture in earthquake-affected areas and other regions. In Rikuzentakata City, for example, we are assisting with the establishment of an extensive indoor “vegetable factory.”

Next-generation Road Transportation Systems Based on ITS

The Takacho Yasudago Mega Solar Power Plant

Photo courtesy of Takacho Yasudago Mega Solar Hatsuden LLC

Automated driving

technologies

Information provision

through ETC2.0

ITS-based new technologies

Advanced driver assistance

systems based on cooperative

ITS

Advanced digital map database

ITS

7

Disaster Prevention/Safety

Advanced Technology

Reconstruction and Revitalization Initiatives in Fukushima Prefecture

Utilizing AI to Improve Local Government Administrative Services

The Great East Japan Earthquake and the ensuing tsu-nami caused devastating damage to mainly the Tohoku district. Particularly in Fukushima prefecture, it has been difficult to reconstruct because of radioactive contamination resulting from the accidents at the nuclear power plants. Based on our knowledge, we are addressing the problems regarding environmental recovery including decontamination and waste processing, industrial and regional reconstruction, and driving the decommission-ing of the Fukushima Daiichi nuclear reactors. In this project, we are also involved in administration and man-agement with our partners, and make use of the knowl-edge and experience gained through this work to find solutions for other problems. Disaster prevention and safety are global priorities. We will continue to contribute to the creation of a sus-tainable society through our work in this field.

Local governments, despite their efforts to improve existing administrative process and outsourcing, cur-rently face challenges of further rationalization and reforms of governmental services to meet the diversify-ing needs of residents as well as the growing complexity of administrative systems. By utilizing AI, administrative services provided by the MRI Group assist in enhancing convenience for resi-dents while improving government employee productiv-ity. For example, we have developed an AI system to process inquiries from residents via smartphones. In 2016, Kawasaki City and Kakegawa City conducted pilot tests of this system to handle residents’ inquiries regarding child-raising. The use of AI-enabled systems provides residents with an easy, simple way to obtain administrative infor-mation, anytime and anywhere via their smartphones, as an alternative to communicating directly with govern-mental personnel. We will continue to develop initiatives that enhance the convenience and quality of life.

A project to reduce the volume of radioactive sewage sludge at a sewage treatment plant in Horikawa-cho, Fukushima City

Smartphone Screen

Hi, hello?I’m still learning English.Welcome to Child Care Town.

How may I help you?

Oh, yes. You need child care service.

Are you looking for a day nursery for your kid?

I am looking for baby-sitting service.

Note: This pilot test was conducted in Japanese. This is a mock screen image.

8

Social ICT

“Monodzukuri” (Manufacturing) Innovation

Support of Electricity System Reform

A Consulting Service Promoting the Use of IoT

Electricity System Reform is expected to pro-mote the power retailing business through a vari-ety of price options, as well as lowering power prices. Electric power companies are currently developing new price systems, as well as the necessary operational environment for their new retail business arms. The MRI Group, with its extensive knowledge of related regulations and policies, provides sup-port for electric power companies in implement-ing new price options through the development of new rate calculation systems. We provide our customers with integrated services by combining our expertise in the field of management and systems consulting with Mitsubishi Research Institute DCS’s long experience in systems development.

There is concern about waning competitiveness of Japanese manufacturing industries due to low-cost off-shore production, especially in emerging countries, and the widespread use of advanced manufacturing tech-nology. The management priorities for manufacturers should be to take advantage of their front-line manufac-turing capabilities while introducing new technologies, such as IoT (Internet of Things), and to achieve innova-tion by combining internal and external knowledge. We, in advance of our clients’ huge investments in IoT, analyze accumulated data related to various situa-tions inside their organizations, assess their opera-tional status and provide countermeasures for the difficulties identified. This enables clients to adopt IoT technology more successfully. We shall respond to cli-ents’ problem-solving needs by combining our exper-tise in the area of strategic decision-making at the level of corporate management based on data analy-sis, with knowledge of our partner, Yokogawa Solution Service, which excels in the use of IT and the improve-ment of operations at manufacturing worksites.

Overall Schedule for Electric Power System Reforms

Differences in Approaches to IoT Introduction

April 2015

Expanded use of cross-regional coordination of transmission

Full liberalization of power retailing

Improved assurance of neutrality of transmission

segment through legal separation

Full liberalization of power retailing

Liberalization of participation

April 2016 April 2020

Conventional approach

Our approach

Make early investment in IoT technology

Analyze in-house big data

Recommend countermea-sures

Assess operating conditions

Visualize Confirm benefits

Introduce IoT based on

anticipated benefits

ImplementedEstablishment of organization for cross-regional coordination of transmission

operators

Legal separation of transmission

segment

Simultaneous with or subsequent to legal separation

Removal of power rate regulations

9

Open Innovation InitiativesWe are reaching the limits of models based on finite resources, such as goods, money, and energy. Our starting

point for the solutions of 21st century problems should be wisdom and knowledge leading to unlimited sustain-

ability and development potential. The driving force for solutions will be technology, especially the continuing

development of innovative technology in the ICT field. The most efficient way to solve societal problems is to use

this new technology as a starting point for the maximization of the entrepreneurial spirit and the speed of new

business establishment, through the creation of models that can be established and sustained as businesses.

Open innovation through industry-academia-government collaboration, combined with regulatory reform and the

assessment of social receptivity, is also likely to provide an effective approach to the solution of societal problems.

Innovation Network for Co-creating the Future

In April 2017, the MRI Group established the Innovation Network for Co-creating the Future (INCF*) as a platform

for the solution of societal problems. Our mission is to contribute to the creation of a vibrant society capable of

sustainable growth, by using innovation to solve accumulated societal problems in Japan and other countries,

and by creating and implementing business models.

1. We will contribute to the solution of high-impact societal problems through business.

2. We will accelerate economic revitalization and industrial restructuring in Japan through industry-academia-

government co-creation.

3. We will work toward the creation of an innovation ecosystem by supporting venture businesses and their

activities.

*Further information about the INCF can be found on the website (incf.mri.co.jp).

Open Co-creation Activities Leading to the Creation of Societal Problem Solution Businesses

The INCF will be administered in the spirit of equal partnership,

centering on a network of members under the following activity

policies. As the hub of the network, the MRI Group will plan and

support communication and collaboration among members and

act as a catalyst for the creation of an open innovation ecosystem.

1. We will accelerate the solution of societal problems by bring-

ing together a network of people and knowledge from

throughout the world.

2. We will facilitate open innovation by optimally combining ideas, innovative technology, and business models.

3. We will co-create and work toward the implementation of initiatives to lower social barriers.

We have established an advisory board of specialists and experts within the INCF to provide continual advice.

We have already enlisted the support and cooperation of a number of eminent people, including MRI Chairman

Hiroshi Komiyama, Professor Richard Dasher, Director of the Stanford University US-Asia Technology

Management Center, and Professor Joichi Ito, Director of the MIT Media Lab.

Initially the INCF is focusing on the solution of societal problems in the six areas of wellness, water and food,

disaster prevention, energy and the environment, mobility, and education and human resource development.

These areas were selected according to several criteria, including the applicability of Japan’s experience, the

major benefits that will result from solutions, and the potential for business establishment.

Priority Measures

10

Strengthening Our Concept Development and R&D CapabilitiesOur concept development and R&D capabilities allow us to perceive societal problems from a wide perspective

and create effective solutions and projects. These qualities are also fundamental to our strengths as an integrated

think tank and are the starting point for our “Think & Act” projects.

In addition to the creation of the new Research and Development Unit, we are also working to strengthen our

capacity to develop new ideas and carry out research and development activities under our Research Fellow

System, which has been enhanced under the leadership of MRI Chairman Hiroshi Komiyama, who was the 28th

President of the University of Tokyo. The Research Fellows use their profound academic knowledge and experi-

ence and extensive networks to provide guidance and support, not only for our research and development activi-

ties, but also for open research and business development with outside organizations.

Building Partnership Networks

In order to provide new value to society and our clients, we depend on the reciprocal utilization of strengths

through collaboration with a variety of partners, and on the improvement of our concept development and R&D

capabilities. An important aspect of collaboration is the formation of information-based networks with business

people, especially management executives. Inspirations that overturn accepted wisdom and fixed concepts fre-

quently arise from diverse communication based on flexible concepts.

We build open networks based on broad perspectives, managing mechanisms and places that are conducive

to serendipity, and as yet unimagined creativity. Through these networks, we undertake initiatives leading to new,

large-scale initiatives and projects.

As part of our “Think & Act” approach to business, we emphasize initiatives focusing on projects that make

wide-spectrum contributions to society. Our key assets for these initiatives are our ability to think creatively, and

our ability to use our contacts to form networks. For example, in the area of wellness, we have launched an inde-

pendent living support service for the elderly in partnership with Moff and the Waseda Research Institute for

Elderly Health. Moff is a venture company that excels in the development of motion detection and analysis appli-

cations based on wearable wristbands, while the Waseda Research Institute for Elderly Health has extensive

experience in the reduction of care dependence. Known as “Moff Training,” this service helps elderly users to

keep up their strength and maintain physical training activities through real-time monitoring of the amount of

exercise they take using a 3D motion analysis program.

Moff Training: Utilizing Wearable IoT to Support Independence for the Elderly

(pronounced “mofu-tore”)

Moff Training is a care dependence prevention program based on advanced physical training and recreational activities. This completely new care dependence prevention system uses wearable 3D motion sensors that can be attached to the wrist or ankle to support independent living for the elderly.

A program based on the

most advanced technology

Making exercise fun

11

IT services

53.8(62%)

Note: Amounts of less than 100 million yen were rounded down.

Net Sales Net Sales by Segments

(Billions of yen) (Billions of yen)

2012.9

75.381.1

87.4 85.3 86.9100

80

90

60

40

20

70

50

30

10

0 2013.9 2014.9 2015.9 2016.9

Ordinary Income

(Billions of yen)

2012.9

3.2

5.5

6.45.8 5.8

8

6

4

2

7

5

3

1

0 2013.9 2014.9 2015.9 2016.9

Net Assets per Share

(Yen)

2012.9

1,8822,072

2,2222,340

2,488

3,000

2,000

1,500

1,000

500

0 2013.9 2014.9 2015.9 2016.9

CO2 Emissions

(t-CO2)

2012.9

11,297

13,651 14,05313,279 13,089

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0 2013.9 2014.9 2015.9 2016.9

Net Income per Share

(Yen)

2012.9

69

175

207224

208

250

200

150

100

50

0 2013.9 2014.9 2015.9 2016.9

(Persons)

2012.9

3,423

864

3,458

870

3,580

894

3,659

874

3,741

896

4,000

3,000

2,000

1,000

3,500

2,500

1,500

500

0 2013.9 2014.9 2015.9 2016.9

Operating Income/Operating Income Net Sales Ratio

2012.9

3.0

5.36.0

5.5 5.44.1

6.67.0

6.5 6.3

8

6

4

2

7

5

3

1

0

8

6

4

2

7

5

3

1

02013.9 2014.9 2015.9 2016.9

Operating Income Net Sales RatioOperating Income

Profit Attributable to Owners of Parent/ROE

(Billions of yen) (%)

2012.9

1.1

2.8

3.4 3.4

3.7

8.99.7 9.9

8.64

5

3

2

1

0

10

12

8

6

4

2

02013.9 2014.9 2015.9 2016.9

ROE

Number of EmployeesConsolidated Non-consolidated

2012.9

10

8

‒8

4

6

2

‒4

‒6

‒2

0

2013.9 2014.9 2015.9 2016.9

(Billions of yen)

2012.9

56.0

36.4

61.0

40.1

65.3

42.1

67.0 71.7

44.1 46.9

100

80

90

60

40

20

70

50

30

10

0 402013.9 2014.9 2015.9 2016.9

Total Assets/Net Assets/Equity RatioCash Dividends per Share/Dividend Payout Ratio

(Yen)

2012.9

3035

45

55

6543.2

21.7

31.2

80

40

60

20

70

30

50

10

0

60

50

40

30

20

10

02013.9 2014.9 2015.9 2016.9

Total Assets Net Assets Equity RatioDividend Payout Ratio Cash Dividends per Share

24.5

19.9

21.7

4.15.5 5.0

7.7

5.0

‒3.1 ‒3.2

‒5.7

‒1.6 ‒0.9

‒0.8 ‒0.7

‒1.1

‒1.3 ‒1.3

Cash Flows

2,500

(%)

3.63.6

55.1 55.7 55.957.3 56.9

60

58

56

54

52

50

48

46

44

42

(Billions of yen)

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

(Billions of yen) (%)

Think tank andconsulting services

33.0(38%)

Systemdevelopment(39%)

Outsourcingservices(23%)

Year endedSeptember 30, 2016

Total

86.9

(%)

Profit Attributable to Owners of Parent

Financial Highlights

12

IT services

53.8(62%)

Note: Amounts of less than 100 million yen were rounded down.

Net Sales Net Sales by Segments

(Billions of yen) (Billions of yen)

2012.9

75.381.1

87.4 85.3 86.9100

80

90

60

40

20

70

50

30

10

0 2013.9 2014.9 2015.9 2016.9

Ordinary Income

(Billions of yen)

2012.9

3.2

5.5

6.45.8 5.8

8

6

4

2

7

5

3

1

0 2013.9 2014.9 2015.9 2016.9

Net Assets per Share

(Yen)

2012.9

1,8822,072

2,2222,340

2,488

3,000

2,000

1,500

1,000

500

0 2013.9 2014.9 2015.9 2016.9

CO2 Emissions

(t-CO2)

2012.9

11,297

13,651 14,05313,279 13,089

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0 2013.9 2014.9 2015.9 2016.9

Net Income per Share

(Yen)

2012.9

69

175

207224

208

250

200

150

100

50

0 2013.9 2014.9 2015.9 2016.9

(Persons)

2012.9

3,423

864

3,458

870

3,580

894

3,659

874

3,741

896

4,000

3,000

2,000

1,000

3,500

2,500

1,500

500

0 2013.9 2014.9 2015.9 2016.9

Operating Income/Operating Income Net Sales Ratio

2012.9

3.0

5.36.0

5.5 5.44.1

6.67.0

6.5 6.3

8

6

4

2

7

5

3

1

0

8

6

4

2

7

5

3

1

02013.9 2014.9 2015.9 2016.9

Operating Income Net Sales RatioOperating Income

Profit Attributable to Owners of Parent/ROE

(Billions of yen) (%)

2012.9

1.1

2.8

3.4 3.4

3.7

8.99.7 9.9

8.64

5

3

2

1

0

10

12

8

6

4

2

02013.9 2014.9 2015.9 2016.9

ROE

Number of EmployeesConsolidated Non-consolidated

2012.9

10

8

‒8

4

6

2

‒4

‒6

‒2

0

2013.9 2014.9 2015.9 2016.9

(Billions of yen)

2012.9

56.0

36.4

61.0

40.1

65.3

42.1

67.0 71.7

44.1 46.9

100

80

90

60

40

20

70

50

30

10

0 402013.9 2014.9 2015.9 2016.9

Total Assets/Net Assets/Equity RatioCash Dividends per Share/Dividend Payout Ratio

(Yen)

2012.9

3035

45

55

6543.2

21.7

31.2

80

40

60

20

70

30

50

10

0

60

50

40

30

20

10

02013.9 2014.9 2015.9 2016.9

Total Assets Net Assets Equity RatioDividend Payout Ratio Cash Dividends per Share

24.5

19.9

21.7

4.15.5 5.0

7.7

5.0

‒3.1 ‒3.2

‒5.7

‒1.6 ‒0.9

‒0.8 ‒0.7

‒1.1

‒1.3 ‒1.3

Cash Flows

2,500

(%)

3.63.6

55.1 55.7 55.957.3 56.9

60

58

56

54

52

50

48

46

44

42

(Billions of yen)

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

(Billions of yen) (%)

Think tank andconsulting services

33.0(38%)

Systemdevelopment(39%)

Outsourcingservices(23%)

Year endedSeptember 30, 2016

Total

86.9

(%)

Profit Attributable to Owners of Parent

13

COMPANYPROFILE

Mitsubishi Research Institute, Inc.10-3, Nagatacho 2-chome, Chiyoda-ku, Tokyo 100-8141, JapanTEL. +81-3-5157-2111

[Published: 2017/10]

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