May 10, 2023
Company Name: MITSUBA Corporation
Legal Representative: Katsuyoshi Kitada, Representative Director, President
Code: 7280, Tokyo Stock Exchange Prime Market
Head Office: 1-2681 Hirosawa-cho, Kiryu-shi, Gunma, Japan
Contact: Yoshiaki Takei, Operating Officer in charge of Corporate Planning
Tel.: +81-277-52-0113

Notice Concerning the Medium-Term Management Plan
MITSUBA Corporation formulated a “Medium-Term Management Plan,” a five-year plan covering the period fromthe fiscal year ending March 31, 2024 to the fiscal year ending March 31, 2028 (hereinafter referred to as the “Plan”)
and announced the details when presenting the financial results for the fiscal year ending March 31, 2023 with “NoticeRegarding Formulation of Medium-Term Management Plan,” a timely disclosure document dated March 15, 2023, andthe company hereby provides notice of further details of the Plan with the attached materials.

Wednesday, May 10

Agenda

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1. Background to formulation of the Medium-Term Management Plan
2. Outline of the Medium-Term Management Plan
3. Priority measures(1) Responding to the evolution of mobility(2) The strengthening of our management foundations(3) Making our financial structure sounder

4. Mitsuba Vision 2030
5. Appendix

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1. Background to formulation of the Medium-Term Management Plan

BEV

Acceleration of theshift to EVs◼ Changes in customers• Response to the transformation of theautomotive industry based on CASE
• Contraction of demand for ICE auto parts• Changes in the added value of merchandise

The evolution of existing business and the creation of
new business by grasping mega trends as business
opportunities

Changes in the external
environment◼ Increase in production fluctuations◼ Supply chain disruption◼ Cost inflation◼ Carbon neutrality

Accumulation of measures for the “strengthening of ourmanagement foundations” that respond to changes inexternal environment

Formulation of the Medium-Term Management Plan
towards becoming a sustainable growth company

2. Outline of the Medium-Term Management Plan

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- Priority measures and financial targets

1 Responding to the evolution of mobility

3

Making our financial structure sounder“Making our financial structure sounder”
through “product competitiveness” and “thestrengthening of our management foundations”◼ Shift of management resources based on the selection andconcentration of business・ Strengthening of sales of products with technological advantages,
centered on motorcycles
・ Creation of new products compatible with electrification

Targets: Numerical values
Last fiscal yearof the MediumTermManagement
Sustainable Plan (FY27)◼ Realization of strategic business alliances◼ Development of new markets among OEMs in China and India Discipline

2 The strengthening of our management foundations◼ Optimization of global quality costs◼ Enhancement of PSI (production, sales and inventory)
management◼ Base reorganization through structural reform◼ Enhancement of sustainability

・ Further promotion of carbon neutrality
・ Strengthening of human resource reskilling and expansion of humanresource investment
・ Enhancement of dialogue with stakeholders and information
disclosure

Mitsuba Vision 2030

growthcompany

GrowthCumulative total
over 5 years(FY23 to 27)

Net sales: 330 billion yen or more
Operating margin: 6% or more

Inventory turnover period in days: 50days or less
FCF: 75.5 billion yen or more

Capital expenditure: 70 billion yen

Targets: Financial indicators
ROE: 10% or more
Last fiscal yearof the MediumTerm
Management
Plan (FY27)

ROA: 4% or more
Capital ratio: 30% or moreNet debt to equity ratio: 0.5 times

2. Outline of the Medium-Term Management Plan - Positioning
Previous Medium-TermManagement Plan

New Medium-Term Management Plan
FY23-27 (5 years)

FY20-22

Constitutionalimprovement(Returning to profit)◼ Domestic structural reform◼ Personnel reduction◼ Suppression of capital
investment◼ Price improvement
:
••
•
•

Prolongation of COVID-19
Shortage of supply ofsemiconductors
Soaring costs of raw
materials
Supply chain disruption:

4/15

Thorough structural reform andpreparation for the new MITSUBA
FY23-24

FY25-27

Prioritization of thegreater soundness ofour financial structure

Shifting of resources
to a growth portfolio

Provision of high valueadded products
corresponding to theevolution of mobility

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3. Priority measures - Responding to the evolution of mobility➢ We will use fewer management resources to make profits on products for which demand is expected todecline or remain constant while investing the cash earned in products for which growth is anticipated.
Policies for managing the business portfolio

Automotive market
HighWe will promote the strategic withdrawal andreduction of products whose demand isdecreasing or that will not generate cash in thefuture.

Operating margin

Engineaccessories

FY27

We will aim for improvements in theprofitability of products whose demand isexpected to remain constant from now on.

(Note) Bubble size: Net sales
The products pictured are representative.

We will invest cash in businesses that will generatecash in the future and be the pillars of the nextgeneration.

Thermalmanagement
systems

FY23
FY27

Startermotors

Brushedfan motors

Door opening
and closing

FY27

Brushless fans & shrouds

FY27

FY23

Chassissystems

FY27

Field-of-visionsystemsConvenienceand comfort

Powerwindows

Low

Low

Power Sliding
Door Drive
System FY23

FY23

FY27
FY23
Electric oilpumps

BLM for braking
controlWipers

Customer market needs

We will concentrate
management
resources to cultivate the pillars
FY23of the next generation that will generate profits.

High

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3. Priority measures - Responding to the evolution of mobility➢ We will continue to accept orders for products whose demand is expected to remain constant while making
concentrated investments using the cash earned in next generation products that will generate future profits.

Motorcycle market

We will promote the strategic withdrawal andreduction of products whose demand isdecreasing or that will not generate cash in thefuture.

We will aim for improvements in theprofitability of products whose demand is
expected to remain constant from now on.
FY27
LED lightings
FY23

We will invest cash in businesses that will generatecash in the future and be the pillars of the nextgeneration.

LED Flasher
Lamps

Operating margin

High

Policies for managing the business portfolio(Note) Bubble size: Net sales
The products pictured are representative.

FY27 FY23FY27 FY23

Engine accessories

Startermotors

Low

Low

Fuelsystems
Fuel Pump
ModuleACGstarters

Customer market needs

EV drive

FY27

Drivesystems

FY23
We will concentrate
management resources to cultivate the pillarsof the next generation that will generate profits.

High3. Priority measures - Responding to the evolution of mobility➢ It is expected that in-vehicle motors will tend to grow from now on and reach around 6 billion
motors in 2030 (about double compared to FY2022).
➢ The company, a motor manufacturer, views this as a good opportunity and will take on thechallenge of expanding business.
70

Number of in-vehicle motors(Unit: 100 million motors)

60

5040

3020100
FY2019FY2020

FY2021

FY2022

FY2025

FY2030Source: Yano Research Institute Ltd.
“Automotive Motors Market 2022”

7/15

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3. Priority measures - Responding to the evolution of mobility➢ We will withdraw unprofitable products and promote the shift of management resources to products andcustomers whose growth and earnings are expected.
➢ Particularly for products for electric vehicles, we will push ahead with acquisition of new customers in China andIndia, as well as working on business alliances that leverage our technological strength in motor technologies.
Net sales(100 millionyen)

Automobile business

BEV-related
products

Business
portfolio

Customerportfolio

HEV, PHEV, etc.

Electrification solutions business

ICE

BEV-related
products

ICE

Micro mobility

FY27

FY231,700

350

FY23FY271,900

FY231,900
CAGR
-3%

New

HEV, PHEV, etc.

Major
customers

Motorcycle business

EV-related
products

E100ICEFY27FY23550800

FY23FY27

FY23FY271,700350550800

1,000

OtherNew

OtherNewCAGR12%Major
customers

FY27
CAGR
6%

Major
customers

1,000Other* BEV: Battery EV, E100: 100% ethanol-fueled car

3. Priority measures - The strengthening of our management foundations

9/15(base reorganization through structural reform)➢ We will promote further base reorganization, which has continued since the previous MediumTerm Management Plan, to reduce fixed costs and strengthen the ability to respond toproduction fluctuations, aiming for the maximization of consolidated FCF.

Americas

EuropeContraction of production(Procurement fromAsia and Mexico)

ChinaIndia
Production
completedwithinthe region

Production
completedwithin
the region

JapanReorganizationof production
bases

Asia

Mutual complementation
within the region / global transplant

Contraction of production(Procurement from Asia and Mexico)

MexicoExpansion of transplant function
for Europe and Americas

3. Priority measures - The strengthening of our management foundations

10/15(further promotion of carbon neutrality)
1st phase:
Innovation phase
FY2021

2nd phase:
Acceleration phase
FY2030

3rd phase:
Adjustment phase
FY2040FY2050

Reduction rate

100%

Achievement of50% reduction

50%

Achievement of100% reduction

0%Development
function policies

Replacement with low carbon materials/ easily recyclable designs /development of recyclable material technologies / expansion of products compatible withelectrification

Productionengineering function
policyDevelopment of energy-saving technologies for production facilities

Production function
policies

Energy-saving measures for factory infrastructure, streamlining of supply chains
On-site wisdom (productivity improvements, reduction of defects), improvement of recyclable energy efficiency

Environment
function policies

Analysis and evaluation of climate change risks and opportunities, disclosure of CN information

Evolution of power coefficient3. Priority measures - The strengthening of our management foundations

11/15(further promotion of carbon neutrality)• Development area:••••

The creation of new value-added products compatible withelectrification
The evolution of existing products for CN (fuel efficiency
improvement, high electricity cost, light weight)
Production engineering area: Energy saving in processes and facilities, promotion of resourcesavingProduction area:
The Group’s Scope 1 & 2 CO2 emissions: -6% compared toFY2018
Formulation of policy for the introduction of recyclable energy
SCM area:
Visualization of CO2 emissions in supply chains
Environment area:
Development of CN initiatives, information disclosure

Developmentarea

SCM area

Production engineering /production areas

SCM area

Production engineering /production areas

Energy that could
not be reduced at
the time ofmanufacture

Replacement with recyclable energy

Developmentarea

SCM area

Visualization of the total amount of CO2 emitted through business activities at each stage → reductions
Highestupstream

Productdesign /material
selection

Upstream

Purchaseof raw
materials

Group bases

Transportation/ delivery

Combustionof fuelUse ofelectricity

Downstream

Internal

Transportation/ delivery

Combustionof fuelCapitalinvestmentFeedback for improvement

Use ofelectricity

Capitalinvestment

Transportation/ delivery

Processingofproducts
for saleUse ofproducts
for sale

Disposalofproducts
for sale12/15

3. Priority measures - Making our financial structure sounder➢ Under the Medium-Term Management Plan, cash in is planned at 180 billion yen through operating profit earned andinventory reductions.
We will use cash in as financial resources to finance future investment, repay interest-bearing liabilities and redeem
class shares.

Cash allocation (cumulative total for 5 years: FY23-27)

Capital investment• Creation of operatingprofit• Inventory reductions:70

Making ourfinancial structure
sounder(JPY B)<FY23-24>• Suppression of investment (effective use ofexisting investment)<FY25-27>• New investment for the evolution of mobility・EV drive motors (motorcycles)
・EV-related products (automobiles,electrification solutions), etc.

• Repayment of interest-bearing liabilities, etc.

54

Return to shareholders• Dividends to shareholders• Redemption of class shares, etc.

32
180Internal reserve

Cash In

Cash Out24• Strengthening of the financial structure in
readiness for external risks• Allocation to investment capacity with an eye on
the future, etc.

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4. Mitsuba Vision 2030
Drive Things, Inspire Minds
We will aim to become a corporate group that contributes to therealization of decarbonized society and grows together through optimal
solutions for electrification.

We will meet the expectations of mobility
society through global niche adaptability.
Drive Things, Inspire Minds

We will create markets with technologies
for mobility and open innovation.

We will share the delight of “challenge,collaboration and creation” with our global
partners.

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5. Appendix - Product introductions
Automotive Products

Motorcycle Products● Roof Motor● LED Flasher Lamp System● LED License
Lamp● Rear Wiper
System

● Front Wiper System● Fuel Pump
Module● Starter Motor● Power Sliding DoorDrive System● EV Drive System● Mission Changing Motor● Fan Motor● AC Generator● Power WindowMotor● ACG Starter

Micro Mobility Products● Power SeatMotor● Starter Motor● Electric Oil Pumps● Electric Power SteeringMotor● Electric Servo Brake Motor● Low-profile Driving System● EV Ecorun Products● Solar Car Products

15/15Disclaimer
This document contains forward-looking statements regarding the Mitsuba Group’s forecasts,targets, etc.
These statements are based on information and forecasts that were available at the time thisdocument was prepared and judgments made by Mitsuba based on assumptions made at the time
this document was prepared.
Note that actual business results may differ from the information provided in this document due to theeffects of economic conditions, business trends, changes in laws and regulations, and other various
risks and factors.
This document should not be construed as an offer or solicitation to buy or sell shares or any othersecurities of Mitsuba.

16/15~ End of Presentation ~