About
Corporate Strategy
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 years*1 and further transform business models.
- *1 connection with customers, technologies, personnel, products, corporate culture, etc.
Integrated Solutions
The Mitsubishi Electric Group's Integrated Solutions are offerings that only we can provide, and we do so by combining our strong core components with a wealth of Field Knowledge and advanced digital technologies.
Based on its strategy, Mitsubishi Electric Group will pursue value creation for addressing social challenges, and contribute to achieving the 17 goals of the SDGs*3, through all corporate activities. 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 promote engagement with stakeholders.
- *3 "Sustainable Development Goals" adopted by the United Nations as goals to achieve towards 2030
The Mitsubishi Electric Group’s Materiality
Medium-term Management Plan Towards FY2026
Financial Targets
The Mitsubishi Electric Group aims to achieve revenue of 5 trillion yen and an operating profit margin of 10% by fiscal 2026. We also aim for an ROE of 10%, as well as to generate cash of 3.4 trillion yen over the five-year medium-term management plan period.
Strengthening of Business Portfolio Strategy
1. Approach to Business Portfolio Strategy
To achieve sustainable growth, the Mitsubishi Electric Group will categorize its businesses based on their characteristics and invest management resources with priority placed on focus areas, thereby strengthening its business portfolio strategy and improving profitability. We will strategically invest our management resources into five Key Growth Businesses: Factory Automation (FA) Control Systems Business, Air Conditioning & Refrigeration Systems Business, Building Systems Business, Automotive Equipment Business (xEV/ADAS*5), and Power Semiconductor Devices Business. In this way, we will shift resources to highly profitable businesses with strong growth. We will also engage in initiatives with development businesses and new areas of business, expanding our solutions business with data integration and utilization and transforming the business model in our existing businesses to create next-generation businesses.
- *5 Advanced Driver Assistance System
2. Priority Allocation of Resource Investment
The Mitsubishi Electric Group will 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. We will aim to attain the FY2026 financial targets (revenue of ¥5 trillion, OPM of 10%).
Expansion of Integrated Solutions
By promoting digital transformation throughout our businesses, we will coordinate and analyze data from our equipment and systems to offer optimal solutions that suit the needs of our customers. We will also expand our solution business in collaboration with our customers and through actively pursuing M&A.
Enhancement of Business Foundation
1. Operation DX
The Mitsubishi Electric Group will achieve total optimization extending beyond the boundaries of business by standardizing cross-business operations and centralizing reusable data. We will promote Operation DX by increasing the sophistication of business management and improving productivity utilizing data and digital technologies.
2. 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
- Strengthen the launch of overseas business models
- Build a supply chain that can flexibly respond to various changes
- Establish Corporate Economic Security Div.
3. 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.
Design
Develop structures and strengthen the development capability of S/W design companies that can accommodate the enhancement of Key Growth Businesses and the expansion of Integrated Solutions (improve productivity, increase personnel, incorporate new technology, etc.).
Logistics
Develop a logistics system with the option of concluding strategic partnerships with global logistics companies, and rapidly respond to changes in the logistics environment and improve efficiency by introducing an advanced platform.
Maintenance & Service
Enhance our recurring revenue business by taking advantage of connection with customers, establish a business structure that maximizes lifetime profits, and create new business opportunities by sharing and making effective use of information accumulated within the Group.
Internal Operation Support
Focus on employee welfare and tasks essential for rolling out each of our businesses, and improve efficiency primarily through the use of outsourcing.
4. 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 core technologies −Driving force for profitability improvement−
Strengthen our differentiated technologies for components and systems, including technology to realize small, high-efficiency motors, and high-speed, high-precision positioning technology, by fusing them with advanced base technologies such as AI and new materials.
Continuously enhance base technologies −Foundation for business−
Further enhance technologies that support quality of and build trust in our products, systems, and services, such as power electronics, control, modeling, material analysis, AI, security, and data analysis/linkage.
Search for and create new technologies −New source of growth−
Take on the challenge of developing technologies that meet the needs generated by social change, as well as next-generation technologies that transform existing businesses, in a discontinuous manner, based on future insights and analysis of technological trends. Also, focus on expanding our proprietary technologies to create new usages and develop new customers.
5. Intellectual Property Strategy
The Mitsubishi Electric Group will work to bolster efforts in obtaining intellectual property rights related to the AI and solutions that help realize DX in business. We will also reinforce further collaborations with external parties based on our technological assets. To this end, we have launched activities for the Open Technology Bank.
Through our proactive efforts in intellectual property, we maintain a high standard*10 in terms of the number of patents we hold and the number of patent applications we file in Japan and abroad. Going forward, we will publish a database of the intellectual property that we have accumulated through many different areas of business, and we will use this as a tool to promote open innovation with external parties. We will not monopolize technologies that help solve social issues. Instead, we aim to realize a sustainable future by allowing them to be used in more areas of business and at more locations.
- *10 The company ranked No. 2 in Japan in terms of the number of patent registrations (in 2020) announced by the Japan Patent Office, and No. 3 in the world (and No. 1 among companies in Japan) in terms of Patent Cooperation Treaty (PCT) applications by businesses (in 2020) announced by the World Intellectual Property Organization (WIPO).
Sustainability Initiatives
1. Initiative to Realize a Decarbonized Society
To realize a decarbonized society, the Mitsubishi Electric Group will further enhance its initiatives to reduce greenhouse gas emissions and it will aim to achieve net-zero emissions in the entire value chain by 2050.
2. Human Rights and Diversity
With respect for human rights based on international regulations serving as a foundation, the Mitsubishi Electric Group will continue to conduct human rights impact assessments, improve our response at contact points that receive complaints and consultations related to human rights, and strive to grasp and correct human rights violation risks in our supply chain right across the organization.
To promote diversity, we will strengthen activities aimed at creating workplaces where individuals can maximize their talents, such as by increasing the ratio of female managers, driving co-creation by fostering an understanding of LGBTQ*20 people and hiring a larger number of people with disabilities, as well as actively promoting local staff to managerial positions at overseas bases.
- *20 Lesbian, Gay, Bisexual, Transgender, Queer (Questioning)
3. Employee Engagement
Taking recent work-related issues seriously and making the prevention of recurring work-related issues key management priorities, the Mitsubishi Electric Group is promoting our Workplace Culture Innovation Program. With third-party verification by external experts, this program is creating a workplace where all employees cooperate to maintain sound mental and physical health and work with peace of mind.
4. Information Security
Based on past incidents of unauthorized access, we will reinforce our information security infrastructure and strengthen measures against the latest attack patterns, which are becoming increasingly sophisticated and elaborate.
5. Product and Service Quality
Considering the occurrence of some improper practices in quality control, the Mitsubishi Electric Group will thoroughly reinforce our basic quality assurance principles*21 and drastically strengthen our quality assurance and quality control system so that our products and services conform with relevant laws, regulations and standards, and surely meet specifications agreed with customers.
- *21 "1. Product quality is our top priority. It comes before price and on-time delivery." "2. Our commitment to the highest quality under any circumstances is unwavering." "3. Products must be safe to use, have a long usage life, and have consistent performance." and "4. Every manager and employee involved in manufacturing a product shares equal responsibility for product quality."
6. Governance
The Mitsubishi Electric Group will 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 strengthen risk management. We will carry out an appropriate response to revisions of legislation and other external factors, and conduct appropriate disclosure to stakeholders.