Mitsubishi Electric Corp. · TSE:6503
Mitsubishi Electric — Investor Presentation (May 2024)
32 slides from Mitsubishi Electric's investor presentation, May 29, 2024
Slide 1: Mitsubishi Electric Corporate Strategy
Mitsubishi Electric Corporate Strategy MITSUBISHI ELECTRIC CORPORATION May 29, 2024
Slide 2: Contents
Contents 1. Medium-term Management Plan for FY2026 P3 2. Initiatives for Higher Growth P6 3. Business Portfolio Strategy P14 4. Strengthening of Business Foundation P21 Appendix Outlook and FY2026 Target P26 Main Non-financial Indicators P29 Initiatives and External Evaluations P30 Note : In this pr
Slide 3: Medium-term Management Plan for FY2026
Medium-term Management Plan for FY2026 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 Currently the business environment is deteriorating sharply for FA*1 and A/C *2 Systems and it is not likely to recover in the short term. Aim to achieve an OPM of 8% or higher after revising FY2026 financial target
Slide 5: 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 The cash generation over a five-year period will be ¥3.3 trillion Maintain initial plan for cash allocation of ¥3.4 trillion, including shareholder returns target Cash Generation Capital Allocation キャピタル・アロケ ー
Slide 6: Initiatives for Higher Growth
Initiatives for Higher Growth 6
Slide 7: Ideal form: Circular Digital-Engineering
Ideal form : “Circular Digital-Engineering” 2. Initiatives for Higher 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
Slide 8: Digital Platform Serendie
Digital Platform “Serendie” 2. Initiatives for Higher Growth Build Serendie *1 as a digital platform for realizing Circular Digital-Engineering Serendie “serendipity ”＋”digital engineering” Create new value for customers and society, and contribute to the realization of a vibrant and sustainable soc
Slide 9: Digital Platform Serendie
Digital Platform “Serendie” 2. Initiatives for Higher Growth Serendie comprises a data analysis system and a Web API integration system Provide new solutions using Serendie and demonstrating technological strengths and creativity Components, Systems, Services Serendie New Solutions Electric power Bu
Slide 10: Serendie-related Businesses
Serendie-related Businesses 2. Initiatives for Higher Growth Establish a new earnings pillar by accelerating initiatives to create new value and expanding profitability for Serendie-related businesses Serendie-related businesses OPM 23% 21% Serendie-related businesses defined as solutions utilizing
Slide 11: Strengthening DX Human Capital
Strengthening DX Human Capital 2. Initiatives for Higher Growth Expand DX human capital for the Mitsubishi Electric Group to 20,000 workers through reskilling, M&As, etc. Define DX skillsets from customer interaction to development, and secure the appropriate human resources Initiatives to expand DX
Slide 12: Realize Sustainability
Re a l i z e S u s t a i n a b i l i t y 2. Initiatives for Higher Growth Innovate through Circular Digital-Engineering and grow our business while enriching society and the environment. Realize sustainability by accelerating “Trade-On (mutual benefits)” activities Established Sustainability Innovat
Slide 13: Open Innovation
Open Innovation 2. Initiatives for Higher Growth Collaborate with startups, universities and research institutions Invest in digital, sustainability and other fields Startup Collaboration Industr y-Academia-Government Collaboration Increasing investments in funds established by venture Investing ¥60
Slide 14: Business Portfolio Strategy
Business Por tfolio Strategy 14
Slide 15: Business Portfolio Strategy
Business Por tfolio Strategy 3. Business Portfolio Strategy Improve profitability and asset efficiency in each sub-segment Current status of each sub-segment / Profitability and asset efficiency improvement policy Major business judgements (withdrawing/selling) Building Systems A/C System & Home Pro
Slide 16: Business Portfolio Strategy
Business Por tfolio Strategy 3. Business Portfolio Strategy Improve profitability and asset efficiency in each sub-segment Current status of each sub-segment / Profitability and asset efficiency improvement policy Major business judgements (withdrawing/selling) Building Systems A/C System & Home Pro
Slide 17: Key Growth Businesses
A Key Growth Businesses 3. Business Portfolio Strategy Initiatives for Business Growth FA Control Systems Building Systems Strengthen businesses in core components and digital fields Expand elevator installation business in mid-range model market and Develop and gradually launch next-generation pr
Slide 18: Portfolio Transformation in the Infrastructure Business Area
B Portfolio Transformation in the Infrastructure Business Area 3. Business Portfolio Strategy Transforming operation system, including optimization of production systems for public utilities/transportation/energy businesses, and allocating resources to defense and solution businesses Resource alloca
Slide 19: Strategy for Renewed Growth in the Automotive Equipment Business
C Strategy for Renewed Growth In the Automotive Equipment Business 3. Business Portfolio Strategy Promote business reform to achieve regrowth in the automotive equipment business amid a transformational period for the industrial structure Mitsubishi Electric Mobility Corporation Commenced Operations
Slide 20: Improvement in Profitability and Capital Efficiency
Improvement in Profitability and Capital Efficiency 3. Business Portfolio Strategy Improve profitability and capital efficiency by judging businesses with issues, reorganizing affiliate companies, selling cross-shareholdings, etc. Judgement of businesses with issues Close examination of cross-shareh
Slide 21: Strengthening of Business Foundation
St r e n g t h e n i n g o f B u s i n e s s F o u n d a t i o n 21
Slide 22: Human capital strategy
Human capital strategy 4. Strengthening of Business Foundation Maximize human capital value through enhanced human capital management and DE&I *1 initiatives Optimal human capital management to grow both personnel and company KPIs: Employee engagement survey, investment, DE&I Realizing proper evalua
Slide 23: Risk management
Risk management 4. Strengthening of Business Foundation Promote company-wide risk management designed to achieve a risk-resilient company able to swiftly respond to new risks in such areas as sustainability and AI Company-wide risk management Risk management structure Company-wide Comprehensive Risk
Slide 24: Three Key Reforms
Three Key Reforms 4. Strengthening of Business Foundation Promoting radical company-wide reforms with the monitoring through the committee under the Board of Directors, incorporating the perspectives of external experts Realize an organizational structure in which there is no incentive to engage in
Slide 25: Appendix
Appendix MITSUBISHI ae ELECTRIC Changes for the Better Mitsubishi Electri 25
Slide 26: Single-year Outlook for FY2025 (Consolidated Performance)
Single-year Outlook for FY2025 (Consolidated Per formance) Appendix FY2022 Actual FY2023 Actual FY2024 Actual FY2025 Outlook 113JPY/US$ 131JPY/Euro 136JPY/US$ 142JPY/Euro 145JPY/US$ 158JPY/Euro 140JPY/US$ 150JPY/Euro 17.7JPY/CNY 19.7JPY/CNY 20.2JPY/CNY 19.5JPY/CNY Revenue (Billions of JPY) 4,476.7 5
Slide 27: Outlook for FY2025 and FY2026 target (by segment)
Outlook for FY2025 and FY2026 target (by segment) Appendix (Billions of JPY) FY2022 Actual FY2023 Actual FY2024 Actual FY2025 Outlook FY2026 Target 113JPY/US$ 131JPY/Euro 136JPY/US$ 142JPY/Euro 145JPY/US$ 158JPY/Euro 140JPY/US$ 150JPY/Euro 130JPY/US$ 140JPY/Euro 17.7JPY/CNY 19.7JPY/CNY 20.2JPY/CNY 1
Slide 28: Outlook for FY2025 and FY2026 target (by sub-segment)
Outlook for FY2025 and FY2026 target (by sub-segment) Appendix (Billions of JPY) (Billions of JPY) FY2024 Actual FY2025 Outlook FY2026 Target FY2024 Actual FY2025 Outlook FY2026 Target 145JPY/US$ 158JPY/Euro 140JPY/US$ 150JPY/Euro 130JPY/US$ 140JPY/Euro 145JPY/US$ 158JPY/Euro 140JPY/US$ 150JPY/Euro
Slide 29: Main Non-financial Indicators
Main Non-financial Indicators Appendix Materiality Targets/Initiative Indicators FY2051: FY2031： 【Scope 1*1, 2*2】 Aim for net zero greenhouse gas emissions Realize a sustainable global Aim for net zero greenhouse gas emissions for entire FY2031： 【Scope 3*3】 Aim for at least 30% net reduction in
Slide 30: Initiatives and External Evaluations
Initiatives and External Evaluations Appendix Participation in initiatives External Evaluations Signed the UN Global Compact (May 2018) aimed at promoting Named on CDP’s A List, the highest rating, for both climate CDP*2 sustainability activities based on international norms change and water securit
Slide 31: 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 32: Mitsubishi Electric - Changes for the Better
» MITSUBISHI ELECTRIC Changes for the Better
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