Mitsubishi Electric Corp. · TSE:6503
Mitsubishi Electric — Investor Presentation (May 2023)
30 slides from Mitsubishi Electric's investor presentation, May 2023
Slide 1: Mitsubishi Electric Corporate Strategy
Mitsubishi Electric Corporate Strategy May 2023 MITSUBISHI ELECTRIC CORPORATION
Slide 2: Contents
Contents 1. Medium-term Management Plan for FY2026 P3 2. Business Portfolio Strategy & Improvement of Management Structure P7 3. Initiatives for Sustainable Growth P12 Sustainability Management P13 Circular Digital-Engineering Company P14 Enhancement of Innovation & Business Foundation for Sustainab
Slide 3: Medium-term Management Plan for FY2026
1 Medium-term Management Plan for FY2026 (April 2021 ～ March 2026) 3
Slide 4: FY2026 Financial Targets
F Y 2 0 2 6 F i n a n c i a l Ta r g e t s 1. Medium-term Management Plan for FY2026 Achieved the revenue target of ¥5 trillion in FY2023 ahead of schedule Focus on achieving the operating profit margin(OPM) and ROE targets going forward 10.0% FY2023 FY2026 OPM Actual Targets Revenue 6.3% ¥5.0trilli
Slide 5: Policy for Achieving FY2026 Financial Targets
Po l i c y f o r A c h i e v i n g F Y 2 0 2 6 F i n a n c i a l Ta r g e t s 1. Medium-term Management Plan for FY2026 Promote business portfolio strategy and improvement of management structure Structural Reform Growth Business Capital Productivity and Judgements Potential Competitiveness Efficien
Slide 6: Capital Allocation Strategy
C a p i t a l A l l o c a t i o n St r a t e g y 1. Medium-term Management Plan for FY2026 Generate ¥3.4 trillion over a five-year period Strengthen investment mainly in Key Growth Businesses, and enhance shareholder returns Cash Generation *1 Capital Allocation Generate more cash through sale of no
Slide 7: Business Portfolio Strategy & Improvement of Management Structure
2 Business Portfolio Strategy & Improvement of Management Structure 7
Slide 8: Reform of the Business Area (BA) Management Structure
Re f o r m o f t h e B u s i n e s s A r e a ( B A ) M a n a g e m e n t St r u c t u r e 2. Business Portfolio Strategy & Improvement of Management Structure BA owners (BAOs) drive business portfolio strategies by enhancing cross-BA businesses, developing new businesses and improving asset efficien
Slide 9: Business Portfolio Strategy
B u s i n e s s Po r t f o l i o St r a t e g y 2. Business Portfolio Strategy & Improvement of Management Structure Improve profitability and asset efficiency in each sub-segment Current status of each sub-segment / Profitability and asset efficiency improvement policy Major business judgements (wi
Slide 10: Progress of Business Portfolio Strategy
P r o g r e s s o f B u s i n e s s Po r t f o l i o St r a t e g y 2. Business Portfolio Strategy & Improvement of Management Structure Investment in Key Growth Businesses Structural reform of Automotive Equipment Business Accelerate selection and concentration through FA Control Systems A/C & Refr
Slide 11: Improvement of Management Structure
I m p r o v e m e n t o f M a n a g e m e n t St r u c t u r e 2. Business Portfolio Strategy & Improvement of Management Structure Enhance cash generation by improving capital efficiency, productivity and profitability, and judgement of businesses with issues Capital efficiency Judgement of busines
Slide 12: Initiatives for Sustainable Growth
3 Initiatives for Sustainable Growth 12
Slide 13: Sustainability Management
Sustainability Management 3. Initiatives for Sustainable Growth Respond to key societal challenges in five basic areas in order to contribute to sustainability Key societal challenges Carbon neutral Circular economy Safety/Security Inclusion Well-being Decarbonize society Build a circular society Re
Slide 14: Circular Digital-Engineering
“Circular Digital-Engineering” 3. Initiatives for Sustainable Growth Leverage strong intra-group connections and knowledge sharing in order to consolidate and then analyze data in the digital space to create new value and contribute to solving key social challenges Solving social challenges through
Slide 15: Circular Digital-Engineering: Enhance Digital Assets
“Circular Digital-Engineering” 3. Initiatives for Sustainable Growth Enhance assets in the digital field spanning across a wide range of customers Enhance assets in the digital field Materialize and commercialize Integrated Solutions OT*1 security solution One-stop service to improve availability/sa
Slide 16: Enhancement of Innovation and Business Foundation to Achieve Sustainable Growth
Enhancement of Innovation and Business Foundation to Achieve Sustainable Growth 3. Initiatives for Sustainable Growth Human Innovation Risk Three Key Capital Strategy Management Reforms Strategy Promote open innovation with Grow together with our people Strategically control Enhance and develop tech
Slide 17: Innovation Strategy
I n n o va t i o n St r a t e g y 3. Initiatives for Sustainable Growth Promote open innovation Recent strategies and initiatives with technical capabilities and creativity Build digital platform and space Build digital platform and space to consolidate various data and Established the DX Innovati
Slide 18: Human Capital Strategy
H u m a n C a p i t a l St r a t e g y 3. Initiatives for Sustainable Growth Grow together with our people and building Recentstrategies Recent strategiesand andinitiatives initiatives a brighter future with the power of human capital Enhance career ownership that respects self-initiative and challe
Slide 19: Risk Management
Risk Management 3. Initiatives for Sustainable Growth Strategically control diversifying uncertainties Recentstrategies Recent strategiesand andinitiatives initiatives in the business environment Enhance a company-wide risk management system Visualize our global business structure/supply chains and
Slide 20: Three Key Reforms - Quality Assurance Reforms
T h r e e K e y Re f o r m s - Q u a l i t y A s s u r a n c e Re f o r m s 3. Initiatives for Sustainable Growth Revising engineering processes Rebuild organizational capability to provide customers with technically correct explanations, and reduce workloads by having managers communicate and negot
Slide 21: Three Key Reforms - Organizational Culture Reforms
T h r e e K e y Re f o r m s - O r g a n i z a t i o n a l C u l t u r e Re f o r m s 3. Initiatives for Sustainable Growth Facilitating two-way communication In accord with the Robust Policies for overarching plan for organizational culture reforms created by the Team Sousei (Creation) company-wide
Slide 22: Three Key Reforms - Governance Reforms
T h r e e K e y Re f o r m s - G o v e r n a n c e Re f o r m s 3. Initiatives for Sustainable Growth Build a compliance system General Shareholders’ Meeting focused on prevention Reporting to Appointment Reporting to Appointment/Supervision of Executive Officers Enhance the Board of Directors’ func
Slide 23: Appendix
Appendix 23
Slide 24: Single-year Outlook for FY2024 (Consolidated Performance)
S i n g l e - y e a r O u t l o o k f o r F Y 2 0 2 4 ( C o n s o l i d a t e d Pe r f o r m a n c e ) Appendix FY2021 Actual FY2022 Actual FY2023 Actual FY2024 Outlook 106JPY/US$ 124JPY/Euro 113JPY/US$ 131JPY/Euro 136JPY/US$ 142JPY/Euro 125JPY/US$ 135JPY/Euro 15.7JPY/CNY 17.7JPY/CNY 19.7JPY/CNY 18.
Slide 25: Outlook for FY2024 and FY2026 target (by segment)
Outlook for FY2024 and FY2026 target (by segment) Appendix (Billions of JPY) FY2021 Actual FY2022 Actual FY2023 Actual FY2024 Outlook FY2026 Target 106JPY/US$ 124JPY/Euro 113JPY/US$ 131JPY/Euro 136JPY/US$ 142JPY/Euro 125JPY/US$ 135JPY/Euro 125JPY/US$ 135JPY/Euro 15.7JPY/CNY 17.7JPY/CNY 19.7JPY/CNY 1
Slide 26: Outlook for FY2024 and FY2026 target (by sub-segment)
Outlook for FY2024 and FY2026 target (by sub-segment) Appendix (Billions of JPY) (Billions of JPY) FY2023 Actual FY2024 Outlook FY2026 Target FY2023 Actual FY2024 Outlook FY2026 Target 136JPY/US$ 142JPY/Euro 125JPY/US$ 135JPY/Euro 125JPY/US$ 135JPY/Euro 136JPY/US$ 142JPY/Euro 125JPY/US$ 135JPY/Euro
Slide 27: Main Non-financial Indicators
Main Non-financial Indicators Appendix Materiality Targets/Initiative indicators FY2031 : Aim for net zero greenhouse gas emissions from factories and offices Realize a sustainable Achieve carbon neutral FY2051 : Aim for net zero greenhouse gas emissions in the entire value chain global environm
Slide 28: Initiatives and External Evaluation
Initiatives and External Evaluation Appendix Participation in initiatives External Evaluation Active participation in initiatives both in Japan and abroad Our corporate activities obtained various external evaluations Signed the UN Global Compact (May 2018) CDP *3 PRIDE Index Clarivate Supplier 2022
Slide 29: Cautionary Statement
Cautionary Statement While the statements herein, including the forecasts regarding the Mitsubishi Electric Group, are based on assumptions considered to be reasonable under the circumstances on the date of announcement, actual results may differ significantly from forecasts. The main factors materi
Slide 30: Mitsubishi Electric - Changes for the Better
» MITSUBISHI ELECTRIC Changes for the Better
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