Mitsubishi Electric Corp. · TSE:6503
Mitsubishi Electric — Investor Presentation (June 2021)
42 slides from Mitsubishi Electric's investor presentation, Jun 3, 2021
Slide 1: Mitsubishi Electric Corporate Strategy
Mitsubishi Electric Corporate Strategy Jun 3, 2021 Mitsubishi Electric Corporation ©Mitsubishi ElectricCorporation ©Mitsubishi Electric Corporation
Slide 2: Executive Summary
Executive Summary 1 2 3 4 ADAS：Advanced Driver Assistance System ©Mitsubishi Electric Corporation 2
Slide 3: Contents
Contents Introduction ＜Appendix＞ 1. Corporate Principle Business Portfolio 2. Management Policy (Reference) 3. Strategy Single-year Outlook for FY2021 4. Medium-term Management Plan Towards FY2025 (Consolidated Performance) 4-1. Important Measures to Achieve Financial Targets Outlook for FY2021 (Seg
Slide 4: Introduction
Introduction Thank you for your continued understanding and support for the activities of the Mitsubishi Electric Group. On February 1, 2021, we celebrated the 100th anniversary of our founding. This could not have been possible without the support of all of you and I would like to take this opportu
Slide 5: Corporate Principle
1 Corporate Principle On the occasion of the 100th anniversary, the company has revised its corporate philosophy system to update the Group's reason for existence as well as the core values and attitude that all employees are asked to embrace and cherish in serving customers and society as a whole.
Slide 6: Management Policy
2 Management Policy In addition to realizing corporate management that balances growth, profitability/efficiency, and soundness, we will contribute to realizing sustainability through all of our activities, and further enhance corporate value that emphasizes the creation of both economic and social
Slide 7: Strategy: Activities for value creation
3 Strategy Provide Integrated Solutions to address diversifying social challenges, in the four fields of Life, Industry, Infrastructure and Mobility, uniting all the capabilities inside and outside of the Group. For this purpose, we will enhance our business foundation fostered over the past 100 yea
Slide 8: Strategy (Integrated Solutions)
Strategy 3 (Integrated Solutions) What is Mitsubishi Electric Integrated Solutions? Offer Integrated Solutions that only we can provide by combining our strong core components with a wealth of Field Knowledge and advanced digital technologies. Advanced Core components Field Knowledge digital technol
Slide 9: Medium-term Management Plan Towards FY2025
4 M e d i u m - t e r m M a n a g e m e n t P l a n To w a r d s F Y 2 0 2 5 ©Mitsubishi Electric ©Mitsubishi Electric Corporation Corporation 9
Slide 10: FY2025 Financial Targets
Medium-term Management Plan 4 To w a r d s F Y 2 0 2 5 FY2025 Financial Targets Revenue ¥5 trillion Operating Profit Margin 10% ROE 10% Cash Generation(*) ¥3.4 trillion/5 years * Adjusted operating cash flow (CF) ©Mitsubishi Electric Corporation 10
Slide 11: Important Measures to Achieve Financial Targets
4-1 I m p o r t a n t M e a s u r e s t o A c h i e v e F i n a n c i a l Ta r g e t s ©Mitsubishi Electric ©Mitsubishi Electric Corporation Corporation 11
Slide 12: Strengthening of Business Portfolio Strategy [1 of 5]
a. Strengthening of Business 4-1 Portfolio Strategy [1 of 5] 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 <Grow
Slide 13: Strengthening of Business Portfolio Strategy [2 of 5]
a. Strengthening of Business 4-1 Portfolio Strategy [2 of 5] Expansion of Key Growth Businesses Select five Key Growth Businesses that can make major contributions to addressing social challenges in domains expected to grow at a high rate globally. Provide Integrated Solutions with core components a
Slide 14: Priority Allocation of Resource Investment
a. Strengthening of Business 4-1 Portfolio Strategy [3 of 5] 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
Slide 15: Growth Targets for FY2025
a. Strengthening of Business 4-1 Portfolio Strategy [4 of 5] G r o w t h Ta r g e t s f o r F Y 2 0 2 5 Aim to achieve revenue of ¥5 trillion and operating profit margin of 10% in FY2025 by focusing on increasing the scale of Key Growth Businesses and improving profitability. Revenue ¥5tn (¥tn) 4.5
Slide 16: Initiatives in Key Growth Businesses
a. Strengthening of Business 4-1 Portfolio Strategy [5 of 5] Initiatives in Key Growth Businesses Factory Automation (FA) Control Systems Business [PLC, Servo, and CNC] Help build a foundation for industry and technological innovation by globally providing machines, equipment, and solutions that rea
Slide 17: Business DX and Open Innovation
b. Expansion of Integrated 4-1 Solutions [1 of 2] Business DX and Open Innovation Link and analyze data from a variety of devices and systems, and provide customer- optimized solutions. Expand the solution domain through co-creation with customers and active use of M&As, etc. Business Innovation Gro
Slide 18: Key Technologies for Integrated Solutions
b. Expansion of Integrated 4-1 Solutions [2 of 2] Key Technologies for Integrated Solutions Promote utilization of our proprietary “compact artificial intelligence (AI) technology,” “IoT Suite: ClariSense,” and “communication technology” intended for use in a wide range of businesses. IoT Suite: Cla
Slide 19: Operation DX
c. Enhancement of Business 4-1 Foundation [1 of 5] Operation DX In April 2021, Process & Operation Re-engineering Group has been established. Its mission is to optimize the Mitsubishi Electric Group as a whole by revamping operational processes, and promoting Operation DX through streamlining operat
Slide 20: Global Response
c. Enhancement of Business 4-1 Foundation [2 of 5] Global Response Strengthen supply and engineering chains globally. Quickly detect and analyze changes in the global political and economic environment in order to respond with agility. ■ Strengthen our global business structure • Formulate and promo
Slide 21: Optimal Group Management System
c. Enhancement of Business 4-1 Foundation [3 of 5] Optimal Group Management System 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 22: R&D Strategy
c. Enhancement of Business 4-1 Foundation [4 of 5] 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 differenti
Slide 23: Intellectual Property/Standardization Strategy
c. Enhancement of Business 4-1 Foundation [5 of 5] Intellectual Property/Standardization Strategy ■Intellectual Property Strategy Focus on acquiring intellectual property rights related to AI and solutions that contribute to Business DX, and expand our business through stronger external collaboratio
Slide 24: Capital Allocation
4-1 d. Capital Allocation 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-year period, with a focus
Slide 25: Sustainability Initiatives
4-2 Sustainability Initiatives ©Mitsubishi Electric ©Mitsubishi Electric Corporation Corporation 25
Slide 26: The Mitsubishi Electric Group's Materiality
4-2 a. Establishment of Materiality The Mitsubishi Electric Group’s Materiality With a view to realize a vibrant and sustainable society, we have set priority items in our sustainability initiatives as materiality. We will actively disclose information on the status of materiality efforts and promot
Slide 27: Initiative to Realize a Decarbonized Society
b . S t a t u s o f Va r i o u s I n i t i a t i v e s 4-2 [1 of 9] Initiative to Realize a Decarbonized Society Revise our Environmental Sustainability Vision 2050(*1) towards the realization of a decarbonized society, further enhancing our initiatives to reduce greenhouse gas emissions. Greenhouse
Slide 28: Initiative to Realize a Decarbonized Society
b . S t a t u s o f Va r i o u s I n i t i a t i v e s 4-2 [2 of 9] Initiative to Realize a Decarbonized Society ①Increased contribution to reducing CO2 emission factor of electric power ②Reduction of emissions by products ～Contribution to increased adoption of renewable energy～ Offering energy savi
Slide 29: Addressing Social Challenges through Our Businesses
b . S t a t u s o f Va r i o u s I n i t i a t i v e s 4-2 [3 of 9] Addressing social challenges through Our Businesses Offer solutions to social challenges through our business activities, including responding to changes in how people interact with each other, the increasing intensity of disasters,
Slide 30: Human Rights and Diversity
b . S t a t u s o f Va r i o u s I n i t i a t i v e s 4-2 [4 of 9] Human Rights and Diversity ■Promote respect for human rights and diversity globally Promote initiatives based on the Mitsubishi Electric Group Human Rights Policy*1 Assess human rights impact as an entire Group Enhance the quality o
Slide 31: Employee Engagement
b . S t a t u s o f Va r i o u s I n i t i a t i v e s 4-2 [5 of 9] Employee Engagement ■Realize a work environment where all employees can work with vitality We take the series of work-related issues extremely seriously. Positioning the prevention of recurrence of such issues as our top management
Slide 32: Information Security
b . S t a t u s o f Va r i o u s I n i t i a t i v e s 4-2 [6 of 9] Information Security ■Develop a comprehensive, multi-layered defense system Based on past incidents of unauthorized access, reinforce our information security infrastructure and strengthen measures against the latest attack patterns
Slide 33: Governance
b . S t a t u s o f Va r i o u s I n i t i a t i v e s 4-2 [7 of 9] Governance Appoint Outside Directors as chairpersons of Nomination, Auditing and Compensation committees to strengthen the supervisory function, and establish specialized organizations under the direct control of the President to st
Slide 34: Activities to Promote Sustainability
b . S t a t u s o f Va r i o u s I n i t i a t i v e s 4-2 [8 of 9] Activities to Promote Sustainability ■Philanthropic activities Contribute to sustainability through all corporate activities Donations by a matching gift system carried out with its employees “Mitsubishi Electric SOCIO-ROOTS Fund” D
Slide 35: Initiatives and External Evaluations
b . S t a t u s o f Va r i o u s I n i t i a t i v e s 4-2 [9 of 9] Initiatives Continue our commitment to the UN Global Expressed approval for the recommendations by the Task Force Compact on Climate-related Financial Disclosures (TCFD) (*1) Continue to promote initiatives and disclose information
Slide 36: Appendix
Appendix ©Mitsubishi Electric ©Mitsubishi Electric Corporation Corporation 36
Slide 37: Business Portfolio (Reference)
Appendix Business Portfolio (Reference) Relationship between segments and businesses Revenue Value Key Growth Segment Sub-segment (FY2020 actual → Resilient Businesses recapturing Businesses FY2025 target) businesses Transportation Systems Public Systems Social Power Generation Systems Energy & Elec
Slide 38: Single-year Business Outlook (Consolidated Performance)
S i n gl e-ye a r Bu s i n ess O u t l o ok Appendix (Consolidated Performance) FY2018 FY2019 FY2020 FY2021 Actual Actual Actual Forecast (Jun. 2021) 111JPY/US$ 109JPY/US$ 106JPY/US$ 105JPY/US$ (Billions of JPY) 128JPY/Euro 121JPY/Euro 124JPY/Euro 125JPY/Euro Revenue 4,519.9 4,462.5 4,191.4 4,470 Op
Slide 39: Business Outlook (Segment Forecast)
Business Outlook Appendix (Segment Forecast) (Billions of JPY) FY2018 FY2019 FY2020 FY2021 FY2025 Actual Actual Actual Forecast Target (Jun. 2021) 111JPY/US$ 109JPY/US$ 106JPY/US$ 105JPY/US$ 105JPY/US$ 128JPY/Euro 121JPY/Euro 124JPY/Euro 125JPY/Euro 115JPY/Euro Energy & Electric Revenue 1,296.7 1,30
Slide 40: Business Outlook (Sub-segment Forecast)
Business Outlook Appendix (Sub-segment Forecast) (Billions of JPY) FY2020 FY2021 FY2025 Actual Forecast Target (Jun. 2021) 106JPY/US$ 105JPY/US$ 105JPY/US$ 124JPY/Euro 125JPY/Euro 115JPY/Euro Energy & Electric Revenue 1,270.2 1,280 \1.5tn Operating Profit 108.9 85 9% Systems （%） 8.6% 6.6% Power Syst
Slide 41: 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 42: Mitsubishi Electric: Changes for the Better
? MITSUBISHI ELECTRIC Changes for the Better N11 / A Anniversay
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