Mitsubishi Electric Corp. · TSE:6503
Mitsubishi Electric — Investor Presentation (May 2022)
45 slides from Mitsubishi Electric's investor presentation, May 2022
Slide 1: Mitsubishi Electric Corporate Strategy
Mitsubishi Electric Corporate Strategy May 2022 ©Mitsubishi Electric Corporation 1
Slide 2: Introduction
Introduction – Aiming to Solve Social Challenges Through “Circular Digital-Engineering” – Since assuming the position of President, I have been giving top priority on completing the investigation into the quality issues that have been causing inconvenience and concern to our customers and other stak
Slide 3: Contents
Contents 1. Mitsubishi Electric’s Sustainability Management 1-1. Sustainability Management 1-2. Circular Digital-Engineering Company that provides solutions to social challenges 1-3. Integrated Solutions 1-4. Sustainable Future by Mitsubishi Electric 2. Progress of Medium-term Management Plan Toward
Slide 4: Mitsubishi Electric's Sustainability Management
Mitsubishi Electr ic’s Sustainability Management 1 ©Mitsubishi Electric Corporation 4
Slide 5: Sustainability Management
1-1 Sustainability Management Position the realization of sustainability as the cornerstone of our management to promote solutions to social challenges through our businesses. Clarify five challenge areas to focus on. Five challenge areas Carbon neutral Circular economy Safety/Security Inclusion Wel
Slide 6: Circular Digital-Engineering Company to solve social challenges
Circular Digital-Engineering Company to solve social 1-2 challenges Aim to transform into “Circular Digital-Engineering” company that provides evolved Integrated Solutions by co-creation and by integrating knowledge within and outside the Group. Contribute to solving various social challenges. Solve
Slide 7: Evolution of Integrated Solutions
1-3 Integrated Solutions Evolution of Integrated Solutions Support the entire lifecycle from consulting to maintenance and operation. Evolve our Integrated Solutions by using algorithms with the Group’s strengths and by incorporating knowledge and assets from outside the Group. Integrated Solutions
Slide 8: Strengthen value proposition through evolving Integrated Solutions
1-3 Integrated Solutions Strengthen value proposition through evolving Integrated Solutions Strengthen components as the base of our business, expand systems utilizing advanced digital technologies, and provide Integrated Solution with these at the core, to be driving the driving force behind contin
Slide 9: A Future Created by Mitsubishi Electric
1-4 Sustainable Future by Mitsubishi Electric A Future Created by Mitsubishi Electric Create a future with our customers and partners in a wide range of business situations, with an eye on diversifying social issues Circular Carbon economy neutral Vision of the Future We Will Create ・Social infrastr
Slide 10: Initiatives for Carbon-Neutral
1-4 Sustainable Future by Mitsubishi Electric Initiatives for Carbon-Neutral Adopted dual approaches to carbon-neutral: Responsibility and Contribution. Develop internal initiatives into businesses Responsibility Contribution Achieve Make the entire carbon- Create/expand value chain carbon neutral n
Slide 11: Initiatives to Realize Carbon-Neutral
1-4 Sustainable Future by Mitsubishi Electric Initiatives to Realize Carbon-Neutral Contribution Create/expand businesses that contribute to carbon-neutral. To make society as a whole carbon neutral, accelerate R&D in three innovation areas: Green by Electronics, Green by Digital, and Green by Circu
Slide 12: New Management Structure to Achieve Sustainability Management
1-4 Sustainable Future by Mitsubishi Electric New Management Structure to Achieve Sustainability Management Established four Business Areas (BA) that will enhance sustainability management. Accelerate solving social challenges through our businesses by BA owners envisioning their ideal state with a
Slide 13: Progress of Medium-term Management Plan Towards FY2025
Progress of Medium-term Management Plan Towards FY2025 2 ©Mitsubishi Electric Corporation 13
Slide 14: FY2025 Financial Targets
2 Progress of Medium-term Management Plan Towards FY2025 FY2025 Financial Targets Revenue ¥5 trillion Operating Profit Margin 10% ROE 10% Cash Generation(*) ¥3.4trillion / 5 years *Cash Generation: Adjusted operating cash flow (CF) ©Mitsubishi Electric Corporation 14
Slide 15: Strengthening of Business Portfolio Strategy
Strengthening of Business Por tfolio 2-1 Strategy ©Mitsubishi Electric Corporation 15
Slide 16: Approach to Business Portfolio Strategy
2-1 Strengthening of Business Portfolio Strategy Approach to Business Portfolio Strategy Classify businesses according to their characteristics and optimize investment of management resources. High Resilient Businesses Key Growth Businesses <Have stable demand and contribute to our <Growth drivers t
Slide 17: Progress of Business Portfolio Strategy: Key Growth Businesses
2-1 Strengthening of Business Portfolio Strategy Progress of Business Portfolio Strategy Key Growth Businesses <Scale Expansion through Growth Investment> Established a new production base in the Owariasahi district in response FA Control to demand for FA control systems in decarbonisation-related f
Slide 18: Progress of Business Portfolio Strategy: Resilient Businesses
2-1 Strengthening of Business Portfolio Strategy Progress of Business Portfolio Strategy Resilient Businesses <Strengthening Profitability> Improve profitability of certain businesses Towards resilient businesses and add them to Resilient Businesses processing machines, high-frequency optical device
Slide 19: Optimal Group Management Strategy
2-1 Strengthening of Business Portfolio Strategy Optimal Group Management Strategy Pursue an optimal group management system by strengthening the functions and reviewing the division of roles of affiliated companies in each value chain. Develop structures and strengthen the development capability of
Slide 20: Priority Allocation of Resource Investment
2-1 Strengthening of Business Portfolio Strategy Priority Allocation of Resource Investment Invest resources in the amount of ¥2.8 trillion, up ¥0.8 trillion from the previous medium-term management plan, centered on Key Growth Businesses. Attain the FY2025 financial targets (revenue of ¥5 trillion,
Slide 21: Capital Allocation Policy
2-1 Strengthening of Business Portfolio Strategy Capital Allocation Policy For capital allocation, giving top priority to investment in growth, further enhance shareholder returns through profit growth. In terms of cash generation, the source of capital, aim to generate ¥3.4 trillion over a five-yea
Slide 22: Enhancement of Business Foundation for Sustainable Growth
Enhancement of Business Foundation for 2-2 Sustainable Growth ©Mitsubishi Electric Corporation 22
Slide 23: Diversity and Employee Engagement: Human Rights and Inclusion
2-2 Enhancement of Business Foundation for Sustainable Growth Diversity and Employee Engagement Promote respect for human rights Promote an initiative for highly objective and transparent respect for human rights in accordance with the UN Guiding Principles on Business and Human Rights and the RBA(*
Slide 24: Realize a work environment where all employees can work with vitality
2-2 Enhancement of Business Foundation for Sustainable Growth Diversity and Employee Engagement Realize a work environment where all employees can work with vitality Positioning the prevention of recurrence of work-related issues as our top management priority, the Group as a whole is advancing “Mit
Slide 25: Information Security / Product and Service Quality
2-2 Enhancement of Business Foundation for Sustainable Growth Information Security / Product and Service Quality Information Security Develop a comprehensive, multi-layered defense system As a countermeasure against cyber-attacks, which are becoming increasingly sophisticated with the use of cloud s
Slide 26: Operation DX
2-2 Enhancement of Business Foundation for Sustainable Growth Operation DX Total optimization extending beyond the boundaries of business Achieve total optimization extending beyond the boundaries of business by standardizing cross- business operations and centralizing reusable data. Promote Operati
Slide 27: Risk Management and Swift Decision Making
2-2 Enhancement of Business Foundation for Sustainable Growth Risk Management and Swift Decision Making Emerging Modern Issues Commitment to Safe plans for procurement Preparation for Sustainability and transportation risks geopolitical Risks Social demand for human rights and environment protection
Slide 28: Governance and Disclosure
2-2 Enhancement of Business Foundation for Sustainable Growth Governance and Disclosure Strengthen Governance and Revitalize internal and external Communication Appoint independent outside directors as chairpersons of Nomination, Auditing and Compensation committees to strengthen the supervisory fun
Slide 29: Activities to promote an inclusive society
2-2 Enhancement of Business Foundation for Sustainable Growth Activities to promote an inclusive society Employees and the company shall work together to promote the "three forms of coexistence" and realize an inclusive society Promote activities that remind us how much we appreciate nature, which S
Slide 30: Initiatives, External Evaluations
2-2 Enhancement of Business Foundation for Sustainable Growth Initiatives, External Evaluations Initiatives Expressed approval for the recommendations by the Task Force Continue our commitment to the UN Global Compact on Climate-related Financial Disclosures (TCFD) (*1) Continue to promote initiativ
Slide 31: Initiatives for Creation of Innovation and Future Growth
Initiatives for Creation of Innovation 2-3 and Future Growth ©Mitsubishi Electric Corporation 31
Slide 32: Open Innovation
2-3 Initiatives for Creation of Innovation and Future Growth Open Innovation Expand our solution domain by leveraging external knowledge and technology through means such as M&As, co-creation with customers and partners, and collaborations with start-ups. Expand business domains through M&As Create
Slide 33: R&D Strategy
2-3 Initiatives for Creation of Innovation and Future Growth R&D Strategy Pursue the enhancement and reform of existing businesses as well as R&D for new value creation in a balanced manner. Aim to address social challenges at an early stage through the active use of open innovation. Strengthen our
Slide 34: R&D Strategy - Major Themes
2-3 Initiatives for Creation of Innovation and Future Growth R&D Strategy - Major Themes - Core technologies Base technologies Achieved "ZEB" in the operational phase of AI that can clarify its control SUSTIE, the ZEB technology test facility rationale First medium-scale office building in Japan wit
Slide 35: Intellectual Property Strategy
2-3 Initiatives for Creation of Innovation and Future Growth Intellectual Property Strategy Strategy 1. Open Technology Bank® Strategy 2. Qualitative IP activity targets Facilitate technology integration by Internal Collaboration & In addition to quantitative advantages, enhance qualitative IP Open
Slide 36: Three Reform Areas for Regaining Trust
Three Reform Areas for Regaining Trust 3 ©Mitsubishi Electric Corporation 36
Slide 37: Three Reform Areas for Regaining Trust
3 Three Reform Areas for Regaining Trust Established the Emergency Response Division and commissioned a quality-related investigation by an Investigative Committee of external experts in response to a series of improper quality control practices. First focus on completing the investigation with the
Slide 38: Organizational culture transformation: Robust Policies
3 Three Reform Areas for Regaining Trust Organizational culture transformation: “Robust Policies” for the creation of a New Mitsubishi Electric Group “Team Sousei (Creation),” a company-wide reform project consisting of 45 members selected through internal recruitment, formulated ”Robust Policies" f
Slide 39: Quality assurance and governance reform
3 Three Reform Areas for Regaining Trust Strengthen quality governance by going back to the premise that “Product quality is our top priority” and implementing quality assurance reform Under the leadership of the new Chief Quality Officer, the Corporate Quality Assurance Reengineering Group will lea
Slide 40: Appendix
Appendix ©Mitsubishi Electric Corporation 40
Slide 41: Single-year Outlook for FY2022 (Consolidated Performance)
Single-year Outlook for FY2022 Appendix (Consolidated Performance) FY2019 FY2020 FY2021 FY2022 Actual Actual Actual Forecast (May. 2022) 109JPY/US$ 106JPY/US$ 113JPY/US$ 115JPY/US$ (Billions of JPY) 121JPY/Euro 124JPY/Euro 131JPY/Euro 125JPY/Euro 15.6JPY/CNY 15.7JPY/CNY 17.7JPY/CNY 18.0JPY/CNY Reven
Slide 42: Outlook for FY2022 (Segment Forecast) and FY2025 target
Outlook for FY2022 (Segment Forecast) Appendix and FY2025 target The grouping of disclosed segments has been revised to business area (BA) units, with subdivided sub- segment information provided on the next page. (Billions of JPY) FY2019 FY2020 FY2021 FY2022 FY2025 Actual Actual Actual Forecast Tar
Slide 43: Outlook for FY2022 (Sub-segment Forecast) and FY2025 target
Outlook for FY2022 (Sub-segment Forecast) Appendix and FY2025 target (Billions of JPY) FY2021 FY2022 FY2025 Actual Forecast Target (May. 2022) 113JPY/US$ 115JPY/US$ 105JPY/US$ 131JPY/Euro 125JPY/Euro 115JPY/Euro 17.7JPY/CNY 18.0JPY/CNY 15.0JPY/CNY Revenue 946.1 990.0 \1.1tn Infrastructure Operating
Slide 44: 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 45: Mitsubishi Electric - Changes for the Better
MITSUBISHI ae ELECTRIC Changes for the Better
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