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.
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.
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.
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.
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.
In April 2021, Process & Operation Re-engineering Group has been established. It serves at the core of operations to optimize the Mitsubishi Electric Group as a whole by revamping operational processes, and promoting Operation DX through streamlining operations and improving productivity utilizing data and digital technologies.
Strengthen supply and engineering chains globally. Quickly detect and analyze changes in the global political and economic environment in order to respond with agility.
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 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.).
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.
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.
Focus on employee welfare and tasks essential for rolling out each of our businesses, and improve efficiency primarily through the use of outsourcing.
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 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.
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.
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.
Focus on acquiring intellectual property rights related to AI and solutions that contribute to Business DX, and expand our business through stronger external collaboration based on our technological assets. In addition, promote a trinity management that aligns business strategy, R&D strategy, intellectual property/standardization strategy for addressing social challenges and expanding our businesses.
In June 2019 we announced Environmental Sustainability Vision 2050*8, proclaiming that we will aim to reduce greenhouse gas emissions from our entire value chain by more than 80%. However, given the acceleration of efforts toward a decarbonized society, we have reviewed the target, and we will further strengthen our endeavors to reduce greenhouse gas emissions. We aim to achieve net-zero emissions across the entire value chain by 2050.
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.
With respect for human rights based on international regulations serving as a foundation, the Mitsubishi Electric Group will 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 *11 people and hiring a larger number of people with disabilities, as well as actively promoting local staff to managerial positions at overseas bases.
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.
To prevent the recurrence of improper conduct in quality control, we will strengthen education to achieve a fundamental improvement in awareness and structures, and we will strengthen our quality control system so that our products and services conform with relevant laws, regulations and standards.