Mitsubishi Electric Corp. · TSE:6503
Mitsubishi Electric — Investor Day (November 2021)
39 slides from Mitsubishi Electric's investor day presentation, Nov 11, 2021
Slide 1: Mitsubishi Electric Key Growth Businesses: Building Systems
Mitsubishi Electric Key Growth Businesses < Building Systems> N o ve m b e r 11 , 2 0 2 1 Mitsubishi Electric Corporation ©Mitsubishi Electric Corporation
Slide 2: Executive Summary
Executive Summary 1 Realize our unique value provision and contribute to solving social challenges by providing solutions in building space (p.7) Establish growth targets for FY2025 with sales of ¥650 Bn. or more, 2 and an operating profit margin of 10% or more (p.8) Achieve ①strengthening competiti
Slide 3: Contents
Contents 1. Business Overview 1-1. Business Structure 1-2. Business Details and Areas 1-3. Business Management Policy 1-4. Our Strengths 1-5. Strengthening of Business Foundation 2. Medium-Term Management Plan of Key Growth Businesses 2-1. Business Environment 2-2. Overview of Key Strategy 2-3. Grow
Slide 4: Business Overview
1 Business Overview ©Mitsubishi 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 Building Systems Our products and services in Building management system [Service with product] System control linking energy- ●Equipment sales, building space saving equipment and various manufacturing and sensors installation ●Maintenance, remote monitoring Multi-air
Slide 7: Business Management Policy - Aims
Business Management Policy 1-3 - Aims - To satisfy society, customers, shareholders and employees by creating solutions in building spaces that leverage our strengths to meet diversifying social challanges and by providing our company's unique value Social Challenges in Building Space Mobility Elimi
Slide 8: Business Management Policy - Efforts to Create Value
Business Management Policy 1-3 - E f f o r t s t o C r e a t e Va l u e - Creation of comfortable, safe and secure building spaces High-quality business growth Contribute to the realization of a safe, secure Achieve growth targets by and comfortable society and a sustainable promoting growth strateg
Slide 9: Business Management Policy - Strategic Direction
Business Management Policy 1-3 - Strategic Direction - Based on the expansion of maintenance services, contribute to solving social challanges by creating comfortable, safe, and secure building spaces through the provision solutions making use of accumulated technologies and data, as well as multi-b
Slide 10: Our Strengths
1-4 Our Strengths By combining our diverse range of building-related products, including elevators & escalators, with a wealth of field knowledge in building operation management and advanced digital technology, our company provides unique integrated solutions Field knowledge Wide range of of buildi
Slide 11: Strengthening of Business Foundation: Restructuring of Building Systems Group
1-5 Strengthening of Business Foundation Restructuring of Building Systems Group Building systems business will be integrated in April 2022 to enhance global competitiveness by building a consistent operational structure from new installation, maintenance, and renewal of elevators & escalators Appro
Slide 12: Strengthening of Business Foundation
1-5 Strengthening of Business Foundation A consistent business management system enables ① Strengthening competitiveness of products and services ② Expansion of solution business ③ Higher profitability Strengthen Global Positioning New Installation Maintenance Renewal Maintenance Develop- Develop- I
Slide 13: Strengthening of Business Foundation: Effects of the Integrated System
1-5 Strengthening of Business Foundation < Effects of the Integrated System > ① Strengthening competitiveness of products and services Sales Enhancing customer responsiveness and improving service quality through one- stop operations Development and manufacturing Strengthening competitiveness of pro
Slide 14: Medium-term Management Plan of Key Growth Businesses
Medium-term Management Plan 2 of Key Growth Businesses ©Mitsubishi Electric Corporation 14
Slide 15: Business Environment
2-1 Business Environment G l o b a l d e m a n d f o r e c a s t fo r S m a r t Bu i l d i n g s * (¥ Tn.) 20 CAGR 11.4% 10 0 FY2022 FY2024 FY2025 FY2020 FY2021 FY2023 G l o b a l d e m a n d fo r e c a s t f o r (¥ Tn.) ＜Asia＞ ＜Europe/America＞ e l e v a to r s & e s c a l a to r s * 5 New installat
Slide 16: Overview of Key Strategy
2-2 Overview of Key Strategy Corporate vision World’s leading provider of building solutions Provided Creation of comfortable, safe and secure building spaces High-quality business growth value Key strategy Provide integrated solutions Growth strategy ① Provide smart building solutions ② Contribute
Slide 17: Growth Target
2-3 G r o w t h Ta r g e t Aim to achieve targets by expanding the system/solution business in addition to the new installation, maintenance and renewal business of elevators & escalators FY 2020 Results FY 2025 Targets Revenue ¥502.1Bn. ¥650Bn. or more Operating (¥ Bn.) 5.1% 10% or more Profit Marg
Slide 18: Growth Strategy: Provide Smart Building Solutions
Growth Strategy: 2-4 (1) Provide Integrated Solutions Provide Smart Building solutions The needs and value of building solutions, and the key technologies that enable them have changed over time. In the future, platforms collaborating with various building facilities will play an important role Smar
Slide 19: Growth Strategy: Contribute to Smart Cities
Growth Strategy: 2-4 (1) Provide Integrated Solutions Contribute to the realization of Smart Cities Solving social challenges by utilizing data beyond business boundaries Use of Cities 5G IoT Automatic baggage Watch over every naturral robots can corner of delivery energy coexist the city services C
Slide 20: Growth Strategy: ZEB Delivery Projects
Growth Strategy: 2-4 (1) Provide Integrated Solutions ZEB delivery projects As a ZEB planner, Mitsubishi in Japan Electric supports the introduction (As of June 2021) of ZEB from design to operation, regardless of whether it is newly built or renovated IWATEJISHO K.K. Kitakami Ekimae Building Servic
Slide 21: Promote ZEB and Contribute to Decarbonization
Growth Strategy: 2-4 (1) Provide Integrated Solutions Promote ZEB and contribute to decarbonization Remote monitoring and control Energy management service Enhancement function of functions Released November 2021 ZEB operation support Support for energy management improvement after completion of ZEB
Slide 22: Contribute to Elimination of Labor Shortages with Robot Mobility Support
Growth Strategy: 2-4 (1) Provide Integrated Solutions Contribute to the elimination of labor shortages by enhancing robot mobility support services Robot mobility support service Enhancement Access control system linkage of functions Released November 2021 Supporting the safe coexistence of humans a
Slide 23: Expand Portfolio of Elevators & Escalators
Growth Strategy: 2-4 (2) Strengthen Elevators & Escalators Business in Global Market Expand portfolio of elevators & escalators ① Further strengthening of premium market Further expand share in premium market by providing new models and accelerating functional development to meet social needs Improv
Slide 24: Recently Secured Projects
Growth Strategy: 2-4 (2) Strengthen Elevators & Escalators Business in Global Market Recently secured projects 8111 Douglas, Dallas, Texas (USA) ・11 high-speed elevators Secured in 2021 Commerzone Madhapur Altimus (India) ・A total of 71 units including high- speed elevators Shenzhen Galaxy T
Slide 25: Capturing Volume Market
Growth Strategy: 2-4 (2) Strengthen Elevators & Escalators Business in Global Market ② Capturing volume market Increase share by capturing volume market where demand continues to grow by utilizing products developed independently by regional bases Segment-by-segment strategy utilizing cost- competit
Slide 26: China as Major Global Development and Production Base
Growth Strategy: 2-4 (2) Strengthen Elevators & Escalators Business in Global Market China to be a major global development and production base in addition to Thailand Enhance product competitiveness by consolidating global development and production into two bases Other bases to be regional develop
Slide 27: Expand Maintenance Services Utilizing ICT and AI
Growth Strategy: 2-4 (2) Strengthen Elevators & Escalators Business in Global Market Expand maintenance and renewal business ① Expand maintenance services utilizing ICT and AI Further improve maintenance quality, sophisticate/optimize in maintenance service through utilization of remote monitoring/f
Slide 28: Global Remote Maintenance Service M's BRIDGE
Growth Strategy: 2-4 (2) Strengthen Elevators & Escalators Business in Global Market Global remote maintenance service "M's BRIDGE" was introduced overseas in October 2019, and the provided countries are expanding Continue to provide advanced, high-quality maintenance services that leverage our stre
Slide 29: Expand Maintenance Portfolio with Multi-brand Maintenance
Growth Strategy: 2-4 (2) Strengthen Elevators & Escalators Business in Global Market ② Expand maintenance portfolio with multi-brand maintenance Expand maintenance business by expanding the scope of maintenance services including other than our own products <Japan> Utilizing the know-how of Hanshin
Slide 30: Overseas Business Strategy
Growth Strategy: 2-4 (2) Strengthen Elevators & Escalators Business in Global Market Since the export of the first unit to overseas in 1950, we have expanded our business to 94 countries, and aim to expand market coverage and acquire missing parts by promoting various strategies including capital pa
Slide 31: Initiatives on Social Challenges
2-5 Initiatives on Social Challenges Contributing to solving social challenges to achieve sustainability ・Achieving a sustainable global environment by contributing to the spread of ZEB ・Realization of a safe, secure, and comfortable society through solutions to respond to the New Normal ■Materialit
Slide 32: Appendix
Appendix © Mitsubishi Electric ©Mitsubishi Corporation Electric Corporation 32
Slide 33: Consolidated Sales of Building Systems Business and New Company
Appendix Consolidated sales and new company sales of building systems business Consolidated Sales of Building Systems Division (breakdown) Mitsubishi Electric Mitsubishi Electric Building-Techno Service Other Domestic and Overseas Affiliates ¥134.8 Bn. ¥319.5 Bn. Approximately ¥280 Bn. Equivalent to
Slide 34: Consolidated Sales Composition Target for FY2025
Appendix Consolidated sales composition target for FY2025 South America, Africa, etc. South America, Africa, etc. overseas Europe Japan overseas Europe Japan and America and America Other Other Asia Asia Total Total more than ¥502.1Bn. ¥650Bn. China China FY2020 system/ FY2025 system/ solutions solu
Slide 35: HR Development and Technical Verification Facilities
Appendix Main HR development and technnical verification facilities for maintaining and improving the quality of building system products and services Educational Center Mitsubishi Electric Building-Techno Service Modernization Training QM Center Building “Ren” Inazawa Works Mitsubishi Electric Buil
Slide 36: List of Affiliated Companies
Appendix List of affiliated companies appearing in the materials Abbreviation Country Name Business summary maintenance / repair / installation of various building equipment Mitsubishi Electric Building Techno-Service MELTEC Japan and various electrical machinery / equipment and Co., Ltd. comprehens
Slide 37: List of Affiliated Companies
Appendix List of affiliated companies appearing in the materials Abbreviation Country Name Business summary manufacturing / sales / installation / maintenance of elevators & IMEC India Mitsubishi Elevator India Private Limited escalators AG-MELCO UAE AG MELCO Elevator Co. L.L.C. sales / installation
Slide 38: 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 39: Mitsubishi Electric - Changes for the Better
9 MITSUBISHI ELECTRIC Changes for the Better N11 / A Anniversay