Mitsubishi Electric Corp. · TSE:6503
Mitsubishi Electric — Investor Day (March 2017)
39 slides from Mitsubishi Electric's investor day presentation, Mar 8, 2017
Slide 1: Mitsubishi Electric Business Strategy of Power Systems
Mitsubishi Electric Business Strategy of Power Systems March 8, 2017 Yasuyuki Ito Executive Officer Group President Energy & Industrial Systems © Mitsubishi Electric Corporation
Slide 2: Business Portfolio of Mitsubishi Electric
1. Business Portfolio Business Portfolio of Mitsubishi Electric Energy & Electric Systems Information & Communication Systems Power Systems Space Systems Power generation systems, Satellites, Ground systems for Transmission & distribution systems, satellite control, etc. Power distribution systems,
Slide 3: Business Portfolio: Ground-breaking products since establishment
1. Business Portfolio Introduced many ground Energy & Electric breaking products, leading Systems industries since its establishment Power Systems 1924 produced 2,300kVA vertical shaft Power generation systems, water turbine generators Transmission & distribution systems, Power distribution systems,
Slide 4: Business overview: Energy & Industrial Systems Group
2. Business overview Energy & Industrial Systems Group Providing / advancing / enhancing electric infrastructure to promote an active and socially responsible society. Our Customers ◆Electric Utilities (Domestic/Overseas) ◆Others (New Power Producer, Hospital etc.） Our business Products and system d
Slide 5: Business overview: Power generation systems
2. Business overview (Business category / product line-up) Power generation systems (Thermal / Nuclear / Hydro) Committed to environmental emissions reductions and efficient energy use Turbine Generator Total advanced digital Water turbine I&C system for Nuclear generator power plant I&C system for
Slide 6: Business overview: Transmission & Distribution Systems
2. Business overview (Business category / product line-up) Transmission & Distribution Systems Power distribution systems high quality and efficient power supply distribute electric power safely and certainly to all users Vacuum circuit Substation Breaker Administrative System Switchgear Power Trans
Slide 7: Business overview: Power Electronics and T&D ICT Systems
2. Business overview (Business category / products line-up) * Power Electronics Systems T&D ICT Systems Meeting market Support smart and efficient operations of needs(FACTS*1,HVDC*2) from electric power market with keeping grid increased renewable energy reliability and stability integration ※1 Flex
Slide 8: Business overview: Medical system / Superconductivity system
2. Business overview (Business category / products line-up) Medical system / Superconductivity system Expand medical business and superconductor business using newly developed technologies such as analyzing technology for electromagnetic fields, and new manufacturing technology for electromagnets 粒子
Slide 9: Sales trends
3. Sales trends Under demand growth situation due to recovery demand after the great east Japan earthquake in 2011 and demand for deregulation in electricity market in 2016, consolidated sales volume was stable around 330 ~ 350 billion JPY. Consolidated sales (Actual / forecast) Billion JPY 500 De
Slide 10: Business strategy
4. Business strategy Corporate Management Policy ~Maintain balanced corporate management for sustainable growth ~ ~Toward a Higher Level of Growth~ ●Accelerate growth of strong business Growth target to be achieved ●Further global expansion by FY2020 Growth ●Create new strong business ●Reinforce the
Slide 11: Business environment (Domestic)
5. Business environment (Domestic) Capital investment trend of Japanese domestic utilities （Trillion JPY） 3 ●Until FY2013 capital investment was Index number following a downward trend 2.12 2.27 2 1.96 2.02 ●Capital investment is recovering due to 107 additional power resources deployment 100 95 9
Slide 12: Business environment (Global)
5. Business environment (Global) 9,300 Americas （ＧＷ） Index 153 Electrical Capacity (Area) （ＧＷ） 124 number 7,500 Europe 6,100 124 ●Expanding global electrical generating Mid-east capacity mainly in Asia and Mid east 164 Japan ●Expect demand growth in T&D sectors 109 100 Asia corresponding to the capa
Slide 13: Growth strategy
6. Growth strategy Market Approach to target in FY2020 Realize Grid stabilization needs after the expansion of unstable renewable energy ① Progress in growth business areas Expect demand growth of “ICT System • Power electronics business solution business” as part of unbundling • ICT business ef
Slide 14: Progress in growth business areas
6. Growth strategy ① Progress in growth business areas 14 © Mitsubishi Electric Corporation
Slide 15: Power Electronics: market trends and opportunities
6. Growth strategy ①Progress in growth business areas Power Electronics Market trend and subjects / needs Business opportunities Expanding renewable energy Rapid market expansion of Global（incl. Japan） sources such as PV and Wind. power electronics expect rapid market expansion of self- • Expans
Slide 16: Power Electronics: Our strengths
6. Growth strategy ①Progress in growth business areas Power Electronics Our Strengths ▽2010 ▽2015 Supply record & Power systems analysis technology experience Power system analysis Simulator for power systems analysis (hybrid, full-digital simulator) technology covering initial system planning t
Slide 17: Power Electronics: Visions
6. Growth strategy ①Progress in growth business areas Power Electronics Visions FACTS (SVC, STATCOM) Expand from existing business markets FY2020 target sales (US, Mid-east, Domestic) into 10 billion JPY sales or developing markets (EU, South-east Asia etc.） more per year * *internal investigation
Slide 18: ICT business: market trends and opportunities
6. Growth strategy ①Progress in growth business areas ICT business Market trends and subjects / needs Business opportunities Progress of the electricity system reform Improvement in power exchange markets System business for power exchange FY2019 baseload power exchange market New system busines
Slide 19: ICT business: Our strengths
6. Growth strategy ①Progress in growth business areas ICT business ▽2005 ▽2010 ▽2015 Our Strengths ■Technology and Know-how In-house demonstration (FY2010～FY2015) developed in-house and demonstrated in collaboration ＜System example＞ FY2012~FY2014 demonstration experiment with with power utilities
Slide 20: ICT business: ICT / IoT framework
6. Growth strategy ①Progress in growth business areas ICT business Build ICT / IoT framework utilizing sensor / control / communication technology Accelerate development of applications for market needs such as facilities operation, maintenance management (asset management), and power exchanges.
Slide 21: ICT business: Visions
6. Growth strategy ①Progress in growth business areas ICT business Visions Domestic ICT business (~FY2020) Prior to investment pick up the latest FY2016~2020, regulations and needs in domestic Gain Target market share: 30% in market 1 trillion JPY market Accelerate globalization of ICT business
Slide 22: Maintain and expand existing business areas
6. Growth strategy ② Maintain and expand existing business areas 22 © Mitsubishi Electric Corporation
Slide 23: Maintain / expand existing business areas
６.Growth strategy ② Maintain / expand existing business areas Market trend and subjects / needs Business opportunities Demand growth for equipment Expand after-sales business replacements needed to improve energy opportunities supply stabilization and efficiency Provided many products after ◆
Slide 24: Expand After-sales business (Turbine Generator)
６.Growth strategy ② Maintain / expand existing business areas Expand After-sales business（ Turbine Generator ） Turbine Generator Ultra-thin Robot for Power Close-up view of generator Generator Inspection for After-sales business ［Rotor］ Our supply record : 2,100 units. Target : 1,000 units or mo
Slide 25: Expand After-sales business (Power Transformer, GIS)
６.Growth strategy ② Maintain / expand existing business areas Expand After-sales business（ Power Transformer, GIS ） ※1 Power Transformer GIS for After-sales business for After-sales business Our supply record : 9,400 units. Supply record : 12,000 units Target : about 6,000 units or more aged
Slide 26: Strengthen products competitiveness
６.Growth strategy ② Maintain / expand existing business areas Strengthen products competitiveness Maintain and expand new equipment business by supplying new products which match customer needs. Customer needs Example of products ■Turbine Generator High-efficient turbine generator High efficienc
Slide 27: Strengthen products competitiveness: turbine generator and transformer
６.Growth strategy ② Maintain / expand existing business areas Strengthen products competitiveness ◆High-efficient turbine generator Strengths 1. Indirect hydrogen cooling for stator ‘‘VP-X series’’ conductors in the 900MVA class turbine generators (World’s-first) 2. Extra-high efficiency rating of 9
Slide 28: Strengthen products competitiveness: GIS and C-GIS
６.Growth strategy ② Maintain / expand existing business areas Strengthen products competitiveness Strengths * Our research in 2016 420kV single * 1. World’s smallest 420kV class GIS (cf. 30% of existing model) break GIS Reduced footprint for substations and shortened installation period 2. Easy ma
Slide 29: New business models with newly applied technology
６.Growth strategy ② Maintain / expand existing business areas Increase sales volume and profit through new business models with newly applied technology Power generation systems (Thermal / Nuclear) *1 Participate electricity supply business (invest to SPC) Develop new domestic business in Nucl
Slide 30: Accelerate Globalization
６.Growth strategy ③Accelerate Globalization 30 © Mitsubishi Electric Corporation
Slide 31: Globalization: business opportunities
６.Growth strategy ③Accelerate Globalization Business opportunities Significant generation capacity growth overseas compared to domestic markets ◆Generation Capacity(GW) ①FY2014 ②FY2030 variance(②－①) ratio(②／①) Domestic 300 GW 330 GW ＋30 GW 110％ Overseas 5,800 GW 9,000 GW ＋3,200 GW 155％ 【reference】
Slide 32: Global facilities (Japanese base)
６.Growth strategy ③Accelerate Globalization Global facilities (Japanese base) Develop advanced technologies in Japanese factories Support overseas facilities from Japanese factories as “mother factory” Provide service to domestic customers from HQ and regional offices Facilities in Japan HQ/br
Slide 33: Global facilities
６.Growth strategy ③Accelerate Globalization Global facilities Started globalization in the 1980s and currently have facilities located in global markets Area Main facilities Function North Americas USA Mitsubishi Electric Power Products, Inc. (MEPPI) Manufacturing / Marketing / Engineering UAE Dub
Slide 34: Localization in USA
６.Growth strategy ③Accelerate Globalization Localization in USA Mitsubishi Electric Power Products, Inc.<MEPPI> founded in 1989 Started operation of a new transformer factory in Memphis, Tennessee in 2014 Accelerating localization of manufacturing, marketing, engineering MEPPI’s facilities Abo
Slide 35: Mid-term Strategy for overseas
６.Growth strategy ③Accelerate Globalization Mid-term Strategy for overseas Strengthen and expand the functions of global facilities (systems engineering) Expand businesses into neighboring areas of each facility Area(facilities) Main Initiative Sales plan (oversea) North Americas Accelerate lo
Slide 36: Development of Fundamental Technologies
7.Development of Fundamental Technologies 36 © Mitsubishi Electric Corporation
Slide 37: Development of fundamental technologies
７.Development of fundamental technologies For growth beyond FY2020,develop fundamental technologies for future power systems Future image of power systems Advanced Substation Power grid Power plant asset management HVDC Decrease unexpected stops from Offshore wind Battery monitoring anomolies Adva
Slide 38: Conclusion
Conclusion Growth target for FY2020 Sales plan ●Net sales 470 billion JPY or more Overseas sales ratio ●OPM ８％ or more ③ 50% Billion JPY 400 32% ① Growth Strategies for FY2020 200 ② ①Progress in growth business areas • Power electronics business 0 • ICT business FY2016 FY2020 ②Maintain and expand ex
Slide 39: Cautionary Statements
Cautionary Statements The expectation of operating results herein and any associated statement to be made orally with respect to the Company’s current plans, estimates, strategies and beliefs, and any other statements that are not historical facts are forward-looking statements. Words such as “expec