Mitsubishi Electric Corp. · TSE:6503
Mitsubishi Electric — Investor Day (November 2021)
29 slides from Mitsubishi Electric's investor day presentation, Nov 8, 2021
Slide 1: Factory Automation (FA) Control Systems [PLC, Servo, and CNC]
Mitsubishi Electric Key Growth Businesses Factory Automation (FA) Control Systems [PLC, Servo, and CNC] November 8, 2021 Mitsubishi Electric Corporation ©Mitsubishi Electric Corporation
Slide 2: Executive Summary
Executive Summary FA Systems Division formulates medium-term business plan aiming for sales of 1 800 billion yen or more and operating profit ratio of 17% or more in FY2025. The FA Control Systems Business, a key growth business for the entire company, aims 2 for sales of 400 billion yen or more and
Slide 3: Contents
Contents 1. Business Overview 1-1. Business Structure 1-2. Business Details and Areas 1-3. FY 2021 2Q Result Highlights 1-4. Our Strengths 1-5. Business Management Policy 2. Medium-term Management Plan of Key Growth Businesses 2-1. Our Vision 2-2. Business Environment 2-3. Direction of Business Expa
Slide 4: Business Overview
1 Business Overview © Mitsubishi Electric ©Mitsubishi Corporation Electric Corporation 4
Slide 5: Business Structure
1-1 Business Structure Business Structure Key Growth Segment Sub-segment Businesses Social Infrastructure Energy & Electric Systems Building Systems Building Systems Factory Automation FA Control Systems Industrial Automation (FA) Systems (PLC, Servo, and CNC) Systems Automotive Equipment xEV/ADAS I
Slide 6: Business Details and Areas
1-2 Business Details and Areas Providing a wide range of products, services, and solutions to support customers' manufacturing Business Group Product FA Control Systems Control PLC Servo CNC (Numerical Controller) and Drive Products Other Control and Drive Products HMI Inverter Robot Processing Mach
Slide 7: FY 2021 2Q Result Highlights
1-3 FY 2021 2Q Result Highlights Demand increased from FY 2020 3Q and further from FY 2021 1Q (¥bn) FY 2020 FY 2021 Year-on-year Demand Growth Factors 2Q 2Q change ％ Type of Digital: Electronics, Semiconductors, 5G, etc. Orders received 281.2 462.8 +181.6 165 business Decarbonization: EV, Battery, S
Slide 8: Our Strengths (1) Technology Asset
1-4 Our Strengths (1) Technology Asset Core of our FA products : Control and drive technologies, synergy, and in-house key parts PLC Servo CNC HMI Sequence Edgecross Control Edge Drives Control Computing ASIC Power Electronics Real-time IoT Suite Technology Control ClariSense AI AI Visualization Mai
Slide 9: Our Strengths (2) Sales and Service Assets
1-4 Our Strengths (2) Sales and Service Assets Sales and service network covering the global FA market Mitsubishi Electric Sales and Service Network Customer Manufacturing Equipment and Machine Tool Builders 69 Countries 94 Countries 177 Sites 1,480 Sites + End Users ©Mitsubishi ElectricCorporation
Slide 10: Our Strengths (3) Partner Assets
1-4 Our Strengths (3) Partner Assets Ecosystem with partners to meet diverse customer needs In-plant Layer SI Equipment 486 307 1,058 Partners Partners IT System Software Partners to realize Partners 290 a smart factory Partners Equipment SI and machinery 166 96 Edge Edge 373 Partners Partners Compu
Slide 11: Our Strengths (4) Customer Assets
1-4 Our Strengths (4) Customer Assets Connection with customers gained through abundant delivery records and operating units 35,000 3,300 Cases Licenses Number of Installations (Cumulative) 11 Million 12 Million 900,000 Units Units Units Number of Units in Operation PLC Servo CNC (Estimated from shi
Slide 12: Business Management Policy (1) Growth Target for FY 2025
Business Management Policy (1) 1-5 Growth Target for FY 2025 FY 2025 Growth Targets : FA System Business FY 2020 FY 2021 FY 2025 Actual Forecast Target Revenue ¥587.9 billion ¥750 billion ¥800 billion+ Operating Profit 10.5% 16.8% 17.0%+ Margin US $ 106 yen 110 yen 105 yen E xc h a n g e R at e Euro
Slide 13: Business Management Policy (2) Portfolio Strategy
Business Management Policy (2) 1-5 Portfolio Strategy Our FA system business consists of a wide range of products. Clarify resource input policies for each business segment and accelerate growth. FY 2020 FY 2021 FY 2025 Business Product Operating Operating Business Operating Category Net Sales Profi
Slide 14: Medium-term Management Plan of Key Growth Businesses
Medium-term Management Plan of 2 Key Growth Businesses © Mitsubishi Electric ©Mitsubishi Corporation Electric Corporation 14
Slide 15: Our Vision
2-1 Our Vision Enriching the lives of people around the world by contributing to co-innovation with industry and infrastructure customers utilizing automation technology ©Mitsubishi ElectricCorporation ©Mitsubishi Electric Corporation 15
Slide 16: Business Environment
2-2 Business Environment Our role will become increasingly important for technological innovation and the realization of a sustainable society ©Mitsubishi ElectricCorporation ©Mitsubishi Electric Corporation 16
Slide 17: Business Environment
2-2 Business Environment Our FA business has expanded steadily by providing value to growth areas. We formulate strategies for growth based Technological Innovation on the business environment. (Digital and Decarbonization), (¥bn ) Intelligent Manufacturing Expansion of East Asian Market Smartphone-
Slide 18: Direction of Business Expansion
2-3 Direction of Business Expansion Focusing on “Technological innovation (digital and decarbonization)” and “Intelligent manufacturing” for future business expansion, we will acquire appropriate technology / human resources and establish a "business driving" structure. Market, customers Co-creation
Slide 19: Direction of Business Expansion (Cash Flow)
2-3 Direction of Business Expansion (Cash Flow) Our FA business continuously generates stable free cash flow. We will strengthen growth investments to realize further expansion of operating cash flow. Cash Flow Growth Investment (¥bn ) M&A, etc. Strengthen Core Components Operating cash flow 15 - In
Slide 20: Growth Strategy
2-4 Growth Strategy Our Growth Strategy Provide Value to Strengthen Expansion of Growth Industries Core Components Integrated Solutions Strengthening Business Infrastructure Technology Assets Sales Service Assets Partner Assets Customer Assets Key Growth Businesses Integrated Solutions, Potential &
Slide 21: Growth Strategy (1) Strengthening Core Components
Growth Strategy (1) 2-4 Strengthening Core Components Introducing next-generation products that meet cutting-edge customers’ needs PLC Servo CNC Optimal control of High speed and manufacturing High speed and Product Roles high accuracy control equipment and high accuracy control of manufacturing pro
Slide 22: Growth Strategy (2) Providing Value to Growing Industries
Growth Strategy (2) 2-4 Providing Value to Growing Industries Establishing business structure to support customers’ innovation globally Growth Industries Food, Beverage, EV Semiconductor Display EMS Battery Logistics Data Center Medical Care Environmental Acceleration of Technological Global Diversi
Slide 23: Growth Strategy (3) Expansion of Integrated Solutions
Growth Strategy (3) 2-4 Expansion of Integrated Solutions Providing integrated solutions that leverage our strengths to meet the needs of intelligent manufacturing Characteristics of FA Systems Business Mitsubishi Electric IT ERP PLM SCM MES Partner Products Offering a diversified product lineup, In
Slide 24: Growth Strategy (3) Expansion of Integrated Solutions
Growth Strategy (3) 2-4 Expansion of Integrated Solutions Accelerate the use of digital technology within the company, establish foundation for DX, and build a new business model Internal Work DX Business DX Precognition Pretreatment using real-time data Digital Marketing Center (Forecast) analysis
Slide 25: Growth Strategy (3) Expansion of Integrated Solutions
Growth Strategy (3) 2-4 Expansion of Integrated Solutions Creating value throughout the customers’ life cycle using digital technology and field knowledge Consulting Software Remote Services ■e-F@ctory (China: since 2014) ■MELSOFT ■iQ Care Remote 4U (Since 2016) Support for automation, Mitsubishi El
Slide 26: Growth Strategy (4) Strengthening Business Infrastructure
Growth Strategy (4) 2-4 Strengthening Business Infrastructure Build a solid, stable supply system by increasing production capacity and establishing a global trilateral manufacturing structure Consideration for Mitsubishi Electric expanding existing sites Dalian Equipment Co., Ltd. Dalian No. 4 Fact
Slide 27: Initiatives to meet Social Challenges
2-5 Initiatives to meet Social Challenges ■Materially realize Provide solutions to social challenges Realize a sustainable global environment sustainability through our business efforts Realize a safe, secure, and comfortable society business through our to social challenges Provide solutions Realiz
Slide 28: Cautionary Statement
Cautionary Statement While the statements herein including the forecast of the Mitsubishi Electric Group are based on assumptions the Group considers to be reasonable under the circumstances on the date of announcement, actual results may differ significantly from forecasts. Such factors materially
Slide 29: Mitsubishi Electric
9 MITSUBISHI ELECTRIC Changes for the Better N11 / A Anniversay