The transactions pursuant to the share exchange described in this document involve securities of a Japanese company.
The share exchange is subject to disclosure requirements of Japan that are different from those of the United States.
Financial information included in this document, if any, was excerpted from financial statements prepared inaccordance with foreign accounting standards that may not be comparable to the financial statements of United Statescompanies.
It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities
laws, since the issuer is located in Japan and some or all of its officers and directors reside outside of the UnitedStates. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violationsof the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves
to a U.S. court’s judgment. You should be aware that the issuer may purchase securities otherwise than under theshare exchange, such as in the open market or through privately negotiated purchases.
This document has been translated from the Japanese-language original for reference purposes only. In the event of
any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language
original shall prevail in all respects.

[Explanatory Note: The following are documents of Mitsubishi Electric Corporation that are incorporated by reference
into the Notice of Extraordinary General Meeting of Shareholders Convocation of KITA KOUDENSHA dated February
9, 2024, specifically (a) the Articles of Incorporation of Mitsubishi Electric Corporation, (b) selected sections from the
Notice of Convocation of the 152nd Ordinary General Meeting of Shareholders of Mitsubishi Electric Corporation,
including the Business Report, financial statements and audit reports, and (c) and the “Other Matters Subject to Measuresfor Electronic Provision for the 152nd Ordinary General Meeting of Shareholders of Mitsubishi Electric Corporation.”](Translation)

ARTICLESOFINCORPORATIONMITSUBISHI ELECTRIC CORPORATIONHISTORY:
Issued: Jan. 14, 1921
Amended:
Dec.
Dec.
Dec
Dec.
Jan.
May
May
Oct.

26,
22,
24,
26,
20,
25,
17,
25,

1921
1925
1931
1935
1937
1937
1940
1940

May
Apr.
July
Sept.
Nov.
Nov.
Nov.
Nov

27,
8,
29,
12,
30,
30,
28,
29,

- 1 -

1946
1947
1948
1949
1951
1955
1956
1957

June
June
June
June
June
June
June
June

29,
28,
29,
28,
27,
29,
27,
26,

1982
1985
1988
1990
1991
1994
1997
1998

Nov.
Nov.
May
Aug.
Nov.
May
Nov.
Sept.
Nov.

25,
26,
26,
20,
25,
26,
25,
22,
30,

1941
1942
1943
1943
1943
1944
1944
1945
1945

Nov.
May
Nov.
Nov.
Nov
Nov.
May
June
June

29,
30,
30,
30,
29,
30,
30,
29,
27,

- 2 -

1960
1963
1964
1968
1969
1972
1975
1977
1980

June
June
June
June
June
June
June
Oct.
June

28,
27,
27,
29,
29,
26,
26,
1,
29,

2001
2002
2003
2004
2006
2009
2015
2016
2022

ARTICLES OF INCORPORATION(As amended June 29, 2022)
Chapter I. General Provisions(Trade Name)
Article 1.
The name of the Company shall be Mitsubishi Denki Kabushiki Gaisha. It shall be expressedin English as Mitsubishi Electric Corporation.
(Organizational Bodies)
Article 2.
As a “Company with Three-committee System,” the Company shall establish a Shareholders
Meeting and Directors, as well as a Board of Directors, a Nomination Committee, an Audit
Committee, a Compensation Committee, Executive Officers, and Financial Auditors.
(Location of Head Office)
Article 3.
The head office of the Company shall be located in Chiyoda-ku, Tokyo.
(Corporate Purpose)
Article 4.
The purpose of this Company shall be to carry on the following businesses:
1) Manufacture and sale of all types of electrical machinery and appliances, electronicequipment and appliances, industrial machinery and appliances, information processing
equipment and appliances, household electrical machinery and appliances, lighting
machinery and appliances, rolling stock machinery and appliances, ship machinery andappliances, aircraft machinery and appliances, guided rockets, satellites,
communications equipment and appliances, machining tools and equipment, scientificand chemical equipment and instruments, optical equipment and instruments, atomic
power machinery and equipment, gas instruments, building and residence-related
products, semiconductors, integrated circuits, and other general machinery andequipment and parts;
2) Manufacture and sale of measuring instruments;
3) Manufacture and sale of alloys, electric wires, and cables, electric materials, magnetic
materials, rubber products, and various kinds of synthetic resin products and wood
products;
4) Manufacture and sale of high pressure gas and containers therefor;5) Supply of electricity and heat services;
6) Construction business and architectural planning business;7) Electric communications business, information processing business , andbroadcasting business;
8) Manufacture, sale, and import sales of medical equipment and instruments;
9) Programming and sale of software relating to any of the foregoing items, and engineeringbusiness; and
10) Any and all business relating to any of the foregoing items.

- 3 -(Method of Public Notice)
Article 5.
Public notice of the Company shall be given by electronic notice. However, in theevent of incidents or other circumstances that do not allow for public notice byelectronic notice, notice shall be given by publication in the Nihon Keizai Shimbun.

Chapter II. Shares(Total Number of Shares Issuable by the Company)
Article 6.
The total number of shares issuable by the Company shall be eight billion (8,000,000,000)
shares.
(Number of Shares Constituting One Unit)
Article 7.
The number of shares constituting one unit of shares of the Company shall be one
hundred (100) shares.
(Rights Related to Additional Shares of Less than One Unit)
Article 8.
Shareholders of the Company’s shares may not exercise rights other than the following rights
in relation to shares of less than one unit that they hold.
1) Rights stipulated in Article 189, Paragraph 2 of the Companies Act.
2) Right to receive allotment of shares for subscription and right to receive allotment ofshare options according to the number of shares held.
3) Right to make requests in accordance with stipulations of Article 9.
(Purchase of Additional Shares of Less than One Unit)
Article 9.
Shareholders of less than one unit of the Company’s shares may request the Company to sellshares to them to fulfill the basic one unit in accordance with share handling regulations.
(Shareholder Register Administrator)
Article 10.
1. The Company shall have a shareholder register administrator for its shares.
2. The shareholder register administrator and its share handling place shall be determinedby the Representative Executive Officer.
3. Production and storage of the shareholder register, share option register, and all othermatters concerning the shareholder register and share option register shall be handled by
the shareholder register administrator and not by the Company.
(Share Handling Regulations)
Article 11.
Procedures and fees for matters concerning the handling of shares and the exercise ofshareholder rights shall be governed by the Share Handling Regulations established by the
Representative Executive Officer, as well as by laws and regulations, or these Articles ofIncorporation.
Chapter III. Shareholders Meeting- 4 -(Convocation)
Article 12.
1. The annual shareholders meeting shall be convened in June each year, and an
extraordinary shareholders meeting shall be convened whenever necessary.
2. The shareholders meeting shall be convened by a Director determined in advance by the
Board of Directors.
(Chairmanship)
Article 13.
Chairmanship of the shareholders meeting shall be assumed by the President and CEO. If the
President and CEO is prevented from so doing, an alternate shall act as chairman in the orderpreviously determined by the Board of Directors.
(Record Date)
Article 14.
The Company shall regard shareholders with voting rights registered or recorded in the lastshareholder register as of March 31 every year as eligible to exercise voting rights at theannual shareholders meeting for that business year.
(Measures for Electronic Provisions, Etc.)
Article 15.
1. The Company may, when convening the shareholders meeting, provide information
contained in the reference materials for the shareholders meeting, etc. electronically.
2. Among the matters to be provided electronically, the Company may choose not toinclude all or part of the matters stipulated in the Ordinance of the Ministry of Justice inthe paper copy to be sent to shareholders who have requested it by the record date forvoting rights.
(Exercise of Voting Right by Proxy)
Article 16.
1. A shareholder of the Company’s shares may exercise his/her voting right by appointing
another shareholder who holds a voting right of the Company present at the shareholders
meeting to be his/her proxy.
2. In the case of the preceding clause, the shareholder or the proxy must submit
written proof of proxy rights to the Company for each shareholders meeting.
(Method of Resolution)
Article 17.
1. Resolutions of the shareholders meeting shall be adopted by a majority of the votes of theshareholders present who are able to exercise voting rights, except where otherwise
provided for by laws and regulations or by these Articles of Incorporation.
2. The quorum for the shareholders meeting to adopt resolutions as provided for in Article
309, Paragraph 2 of the Companies Act shall be by a vote of two-thirds (2/3) or more ofshareholders’ voting rights, of one-third (1/3) or more of the shareholders present who areable to exercise voting rights.

Chapter IV. Directors, Board of Directors, and Committees- 5 -(Election of Directors)
Article 18.
1. The Directors shall be elected by resolution of the shareholders meeting.
2. Resolutions for the election of Directors shall require a majority vote byshareholders present who are able to exercise their voting rights and who hold one-third(1/3) or more of voting rights.
3. The election of the Directors shall not be made by cumulative voting.
(Term of Office of Directors)
Article 19.
The terms of office of the Directors shall expire at the close of the annual shareholders
meeting that concerns the last business term ending within one (1) year after their appointment.
(Chairman of the Board of Directors)
Article 20.
The Chairman of the Board of Directors may be appointed by resolution of the Board of
Directors.
(Person to Convene and Chair the Board of Directors)
Article 21.
1. Unless otherwise stipulated by laws and regulations, the Chairman of the Board of
Directors shall convene and preside over the Board of Directors.
2. If the office of the Chairman of the Board of Directors is vacant or if the Chairmanof the Board of Directors is prevented from so doing, an alternate shall convene andpreside over the Board of Directors in the order previously determined by the Board of
Directors.
(Notice of Convocation of Board of Directors)
Article 22.
Notice for convening the Board of Directors shall be sent to each Director at least three (3)days prior to the date of each meeting.
The period provided for in the preceding paragraph may be shortened in case of urgency.
(Resolutions of the Board of Directors without Meeting)
Article 23.
Matters that require resolutions of the Board of Directors may be resolved without holding ameeting if all Directors indicate their approval of such matters in writing or in electromagnetic
recording media, and such unanimous approval shall be treated as if resolutions wereeffectively adopted through a meeting of the Board of Directors.

(Exemption of Liability of Directors)
Article 24.
1. In accordance with Article 426, Paragraph 1 of the Companies Act, the Company shall be- 6 -able to exempt the liability of Directors (including former Directors) as specified by
Article 423, Paragraph 1 of the Companies Act by resolution of the Board of Directors,
to the extent allowed by laws and regulations.
2. In accordance with Article 427, Paragraph 1 of the Companies Act, the Company
shall be able to enter into limited liability agreements as specified in Article 423,
Paragraph 1 of the Companies Act with Directors (excluding Executive Directors, etc.).
However, the limit of liability based on this agreement shall be either ¥10 million or more
as previously stipulated, or the statutory amount, whichever is higher.
(Members of Committees)
Article 25.
Members of the Nomination Committee, the Audit Committee, and the Compensation
Committee shall be selected from Directors by resolution of the Board of Directors.

Chapter V. Executive Officers(Election of Executive Officers)
Article 26.
Executive Officers shall be appointed by resolution of the Board of Directors.
(Term of Office of Executive Officers)
Article 27.
The terms of office of Executive Officers shall expire on the last day of the business term that
ends within one (1) year after their appointment.
(Representative Executive Officers and Executive Officers with Executive Powers)
Article 28.
1. The Representative Executive Officers shall be selected by resolution of the Boardof Directors.
2. A President and CEO and a certain number of Executive Vice Presidents, SeniorVice Presidents, Senior Executive Officers, and Executive Officers may be appointed byresolution of the Board of Directors.
(Exemption of liability of Executive Officers)
Article 29.
In accordance with Article 426, Paragraph 1 of the Companies Act, the Company shall be able
to exempt the liability of Executive Officers (including former Executive Officers) as specified
by Article 423, Paragraph 1 of the Companies Act by resolution of the Board of Directors, tothe extent allowed by laws and regulations.

Chapter VI. Account(Business Term)- 7 -Article 30.
The Company shall have one business term a year, from April 1 to March 31 of the following
year.
(Method for Determining Distribution of Surplus, etc.)
Article 31.
Unless otherwise stipulated by laws and regulations, the Company may make decisions on
matters specified in Article 459, Paragraph 1 of the Companies Act by resolution of the Boardof Directors, without resolution at the shareholders meeting.
(Record Date for Distribution of Surplus)
Article 32.
The Company may make distribution of surplus to shareholders or registered share pledgees
who are registered or recorded in the shareholder register as of March 31 or September 30 ofevery year.
(Limitation on Payment Period of Distribution of Surplus)
Article 33.
1. In the event that distribution assets are in the form of cash (hereafter “dividends”), incases when payment of any of the dividends declared is not received within three (3) fullyears from the date of commencement of payment, the Company shall be discharged ofthe liability to pay such declared and unreceived dividends.
2. Dividends shall not bear interest thereon.
- End –

- 8 -Business Report(April 1, 2022 to March 31, 2023)
I. Matters Relating to the Mitsubishi Electric Group
1. Business Development and Results
The economy in fiscal 2023 continued to see recovery in the corporate and household
sectors in the U.S. In China, there was downward pressure due to the impact of
movement restrictions caused by the expansion of COVID-19, and the subsequent
recovery was only moderate. In Japan, gradual recovery continued primarily in thehousehold sector. In Europe, the paces of recovery were even slower in the corporateand household sectors. There was also the impact of the rise in some material prices,high logistics costs and the prolonged electronic components shortage.
In this environment, the Mitsubishi Electric Group has been working harderthan ever to maximize profitability by accelerating business transformation and its
business portfolio strategy under a new business area management structure, while
continuously implementing initiatives to bolster its competitiveness and businessstructure. As a result, the business performance for fiscal 2023 is as follows.
Revenue
Revenue increased by 526.9 billion yen year-on-year to 5,003.6 billion yen owing
primarily to the weaker yen. The Life segment saw an increase in the building systems
business in Asia and Japan, and the air conditioning systems & home products
business also increased due mainly to an expansion in demand for air conditioners in
Europe, Japan and North America. The Industry and Mobility segment saw anincrease in the factory automation systems business due mainly to an increase indemand for capital expenditures related to products in the decarbonization area. The
automotive equipment business also increased due to robust demand for electricvehicle-related equipment. The Business Platform segment saw an increase in theinformation systems & network service business due mainly to increases in the system
integrations and the IT infrastructure service businesses. The semiconductor &devices business also increased due to robust demand for power modules. The
Infrastructure segment saw the energy systems businesses remaining substantiallyunchanged year-on-year, while the public utility systems business saw an increase in
the public utility area outside Japan and the defense & space systems business saw anincrease in the defense systems business.
Operating Profit
Operating profit increased by 10.3 billion yen year-on-year to 262.3 billion yen due
mainly to increases in the Business Platform segment and the Life segment, despite
decreases in the Infrastructure segment and the Industry and Mobility segment.
1

Operating profit ratio decreased by 0.4 points year-on-year to 5.2% due mainly to anincrease in selling, general and administrative expenses.
The cost ratio deteriorated by 0.1 points year-on-year as there was the impactof the rise in some material prices and the deteriorated profitability of theInfrastructure segment, despite the improvement owing to the weaker yen and price
hike.
Selling, general and administrative expenses increased by 134.3 billion yen
year-on-year, and the selling, general and administrative expenses to revenue ratio
deteriorated by 0.4 points year-on-year. Other profit (loss) increased by 2.2 billion yen
year-on-year due primarily to sales of land despite the recognition of impairment
losses on the fixed assets, and other profit (loss) to revenue ratio improved by 0.1
points year-on-year.
Profit before income taxes
Profit before income taxes increased by 12.4 billion yen year-on-year to 292.1 billion
yen due primarily to an increase in operating profit. The profit before income taxes
to revenue ratio was 5.8%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders increased by
10.4 billion yen year-on-year to 213.9 billion yen due mainly to an increase in profit
before income taxes. The net profit attributable to Mitsubishi Electric Corporation
stockholders to revenue ratio was 4.3%.
ROE deteriorated by 0.2 points year-on-year to 6.9%.
Consolidated Performance(Billions of yen)
Fiscal period
Classification
Revenue
Operating profit
Profit before income taxes
Net profit attributable to
Mitsubishi Electric Corp.
stockholders

151stFiscal 2022
4,476.7
252.0
279.6
203.4

2

152nd
Fiscal 2023
5,003.6
Up 12% YoY
262.3
Up 4% YoY
292.1
Up 4% YoY
213.9

Up 5% YoY

Revenue by Business Segment(Billions of yen)
152nd
Fiscal 2023

Business Segment
Infrastructure

973.1

As a percentageof revenue
16.7

Industry and Mobility

1,660.2

28.4

Life

1,947.1

33.3

Business Platform

429.3

7.3

Revenue

836.0
14.3
OthersSubtotal
5,845.9
100.0
Elimination and corporate(842.2)
Total
5,003.6
Note: The figures shown in this table include internal revenue between segments (transfer). The
same applies to Information by Business Segment on the following pages.

Revenue by Location(Billions of yen)

151st
152nd
Fiscal 2022
Fiscal 2023
Location
Revenue
As a
Revenue
As apercentage
percentageof revenueof revenueJapan
2,332.4
52.1
2,467.0
49.3
North America
461.9
10.3
625.5
12.5
Asia (excluding Japan)
1,114.9
24.9
1,218.9
24.4
Europe
495.3
11.1
607.8
12.1
Others
72.1
1.6
84.3
1.7
Overseas2,144.3
47.9
2,536.6
50.7
Total
4,476.7
100.0
5,003.6
100.0
Note: Revenue is shown by country and region based on customer location.

3

Information by Business Segment
151st(Fiscal 2022)
Infrastructure

152nd(Fiscal 2023)

YoY

Revenue¥946.1 billion¥973.1 billion

Up 3%

Operatingprofit¥41.5 billion¥27.5 billion

Down ¥14.0 billion

Principal products (as of March 31, 2023):
Electrical equipment for locomotives and rolling stock, wireless and wired communications systems, network cameras
and their systems, large display devices, turbine generators, hydraulic turbine generators, nuclear power plant
equipment, motors, transformers, power electronics equipment, circuit breakers, gas insulated switchgears, switch
control devices, surveillance-system control and security systems, transmission and distribution ICT systems, satellite
communications equipment, satellites, radar equipment, antennas, missile systems, fire control systems, broadcasting
equipment, and others

The market for the public utility systems business saw robust investment in the
public utility area worldwide, while there was a continuing trend of railway companies
in Japan revising their capital expenditures due to the impact of COVID-19. In thisenvironment, orders won by the business increased year-on-year due primarily to anincrease in the public utility area worldwide. Revenue also increased year-on-year due
to the weaker yen and an increase in the public utility area outside Japan.
The market for the energy systems business continued to see capital
expenditures of power companies in Japan and robust demand for power supply
stabilization worldwide in the expansion of renewable energy. In this environment,
orders won by the business increased year-on-year due primarily to increases in the
power distribution business in Japan and the power generation business outside Japan.
Revenue remained substantially unchanged year-on-year.
The defense & space systems business saw an increase in orders year-onyear due primarily to an increase in large-scale projects for the space systems business,while revenue increased year-on-year due mainly to an increase in large-scale projects
for the defense systems business.
As a result, revenue for this segment increased by 3% year-on-year to 973.1
billion yen.
Operating profit decreased by 14.0 billion yen year-on-year to 27.5 billion yen
due primarily to a shift in project portfolios and lower profitability in the defense &space systems business.

4

151st(Fiscal 2022)
Industry and Mobility

152nd(Fiscal 2023)

YoY

Revenue¥1,480.8 billion¥1,660.2 billion

Up 12%

Operatingprofit¥96.4 billion¥95.9 billion

Down ¥0.5 billion

Principal products (as of March 31, 2023):
Programmable logic controllers, inverters, servomotors, human-machine interface, motors, hoists, magnetic switches,
no-fuse circuit breakers, short-circuit breakers, transformers for electricity distribution, time and power meters,
uninterruptible power supply, industrial fans, computerized numerical controllers, electrical discharge machines, laser
processing machines, industrial robots, clutches, automotive electrical equipment, electric vehicle-related equipment,
ADAS-related products, car electronics and car mechatronics, car multimedia, and others

The market for the factory automation systems business saw a decrease in demandfor digital equipment such as smartphones and semiconductors, while there wasrobust demand primarily for capital expenditures related to products in the
decarbonization area such as lithium-ion batteries. In this environment, orders won
by the business decreased year-on-year due primarily to a temporary slowdown indemand for digital equipment, while the revenue increased year-on-year due mainly to
the weaker yen and an increase in demand for products in the decarbonization area.
The market for the automotive equipment business saw a year-on-yearincrease in sales of new cars and robust demand for electric vehicle-related equipment
in line with the expansion of the electric vehicle market, despite the semiconductor
shortage. In this environment, the business saw increases in both orders and revenue
year-on-year due primarily to the weaker yen and increases in electric vehicle-related
equipment such as motors and inverters as well as electrical components.
As a result, revenue for this segment increased by 12% year-on-year to 1,660.2
billion yen.
Operating profit of the factory automation systems business increased due
primarily to an increase in revenue and the weaker yen, while operating profit of theautomotive equipment business decreased due primarily to the rise in material prices
and logistics costs as well as the recognition of impairment losses on the fixed assets.
As a result, operating profit for this segment decreased by 0.5 billion yen year-on-year
to 95.9 billion yen.

5

151st(Fiscal 2022)
Life

152nd
(Fiscal 2023)

YoY

Revenue¥1,673.0 billion¥1,947.1 billion

Up 16%

Operatingprofit¥92.6 billion¥101.2 billion

Up ¥8.6 billion

Principal products (as of March 31, 2023):
Elevators, escalators, building security systems, building management systems, room air conditioners, package air
conditioners, chillers, showcases, compressors, refrigeration units, air-to-water heat pump boilers, ventilators, hotwater supply systems, IH cooking heaters, LED bulbs, indoor lighting, LCD televisions, refrigerators, electric fans,dehumidifiers, air purifiers, vacuum cleaners, jar rice cookers, microwave ovens, and others

The market for the building systems business continued to see recovery from theslowdown stemming from COVID-19. In this environment, the business saw
increases in both orders and revenue year-on-year due primarily to the weaker yen andincreases in Asia and Japan.
The market for the air conditioning systems & home products business
saw an improvement of the situation with regard to the electronic components
shortage in and after the second quarter. In this environment, the business saw anincrease in revenue year-on-year due mainly to the weaker yen and an increase in air
conditioners in Europe, Japan and North America.
As a result, revenue for this segment increased by 16% year-on-year to 1,947.1
billion yen.
Operating profit increased by 8.6 billion yen year-on-year to 101.2 billion yen
due primarily to an increase in revenue and the weaker yen, despite the rise in material
prices and logistics costs as well as lower production level in the first quarter.
151st(Fiscal 2022)
Business Platform

152nd(Fiscal 2023)

YoY

Revenue¥382.8 billion¥429.3 billion

Up 12%

Operatingprofit¥26.4 billion¥39.9 billion

Up ¥13.4 billion

Principal products (as of March 31, 2023):
Network security systems, information systems equipment, systems integration, power modules, high-frequency
devices, optical devices, LCD devices, and others

The market for the information systems & network service business saw robust
demand due mainly to the restarts of projects delayed in the COVID-19 pandemic,
despite the semiconductor shortage. In this environment, the business saw an increasein both orders and revenue year-on-year due mainly to increases in the system
integrations and the IT infrastructure service businesses.
The market for the semiconductor & device business saw robust demandfor power modules used in consumer and industrial applications. In this environment,
orders won by the business decreased year-on-year as the trend of customers securing
power modules for the future settled down and there was an impact of the end of the6TFT-LCD module business. Revenue increased year-on-year due primarily to theweaker yen, and increases in power modules used in consumer and industrial
applications.
As a result, revenue for this segment increased by 12% year-on-year to 429.3
billion yen.
Operating profit increased by 13.4 billion yen year-on-year to 39.9 billion yen
due mainly to an increase in revenue and the weaker yen.
151st
(Fiscal 2022)
Others152nd(Fiscal 2023)

YoY

Revenue¥737.3 billion¥836.0 billion

Up 13%

Operatingprofit¥26.7 billion¥31.4 billion

Up ¥4.7 billion

Principal products (as of March 31, 2023):
Procurement, logistics, real estate, advertising, finance, and other services

Revenue increased by 13% year-on-year to 836.0 billion yen due primarily to increases
in materials procurement and logistics.
Operating profit increased by 4.7 billion yen year-on-year to 31.4 billion yen
due mainly to an increase in revenue.

72. Capital Expenditures
During fiscal 2023, the Mitsubishi Electric Group made decisions to invest a total of
365.3 billion yen, up 101% compared to the previous fiscal year, with the aim offurther enhancing corporate value through strategic and intensive input of resources
based on the Medium-Term Management Plan.
Principal capital expenditures per segment are as follows:
Segment

Infrastructure

Industry and Mobility

Life

Business Platform

Amount*Major Projects Completed

Major Ongoing Projects within(Billions

within Consolidated Basis

Consolidated Basisof Yen)Fiscal 2023
Mitsubishi Electric Public Utility
Equipment Corporation
Facility for assembly and testingfor electrical equipment for
locomotives and rolling stock
Industrial Mechatronics Systems
Works
Development of a system forincreased production of microlaser processing machines
Mitsubishi Electric Air
Conditioning Systems
Manufacturing Turkey Joint
Stock Company
Enhancement of air conditioner
production system (Turkey)
Power Device Works
Acquisition and development of
Fukuyama Factory

Fiscal 2023

36.0

64.5

99.5

148.6

Mitsubishi Electric Engineering
Company Limited
Others
16.7
Establishment of nextgeneration core operation
system*Figures shown in this table are based on investment decisions.

8–
Nagoya Works
Development of new facility in the
Owariasahi district
Mitsubishi Electric India Private
LimitedConstruction of new facility anddevelopment of production system
for air conditioners (India)
Power Device Works
Fukuyama Factory
Development of 12-inch Si wafer
production system
Shisui Factory
Construction of a new plant anddevelopment of 8-inch SiC wafer
production system
Mitsubishi Electric Europe
B.V.
Establishment of next-generationcore operation system (Europe)3. Corporate Agenda
Three Key Areas to Restore Trust (Quality Assurance, Organizational Culture,
and Governance) to Be Deepened, Developed, and Steadily Instilled
The Company seriously takes the full extent of the improper quality control practices
identified to date and the findings and recommendations from the Investigative
Committee and Governance Review Committee and is taking measures to prevent
any recurrence in its entire group so that a similar incident never occurs. In addition,
the Company positions three key areas to restore trust (quality assurance,
organizational culture and governance) as top management priorities and, deepening
and developing these priorities, is committed to reforming toward the creation of a
new Mitsubishi Electric.
In the quality assurance reforms (revising engineering processes), based onefforts such as normalizing manufacturing management, design frontloading, anddata-driven quality control and procedures, the Company is rebuilding anorganizational capability to provide customers with technically correct explanations
and reducing workloads by having managers communicate and negotiate withcustomers, with a goal of restructuring the organization so that there is no need toengage in improper quality control practices in the first place.
In the organizational culture reforms (facilitating two-way communication), theCompany is cultivating a culture in which people feel comfortable in raising issues
with their managers, and also in which people collaborate to solve problems.
In the governance reforms (building a compliance system focused on
prevention), the Company is building “systems for governance and internal control
that incorporate external perspectives and eliminate any incentive to act improperly.”
As announced in “Results of Investigation into Improper Quality Control
Practices in the Company’s Associated Companies” (available only in Japanese,released on April 14, 2023), all improper quality control practices found by theinvestigation at the Company’s associated companies are violation of contracts, which,
we believe, are caused mainly as a result of the staff on the ground having been forced
into such practices, as is the case with the improper quality control practices occurredat the Company’s Works. Therefore, the Company will deploy and instill the quality
assurance reforms and measures for strengthening the control function, which theCompany is currently implementing, to the associated companies as well.
Promotion of Sustainability Management
The Mitsubishi Electric Group’s Purpose of “contributing to the realization of avibrant and sustainable society through continuous technological innovation andceaseless creativity” encapsulates the reason of our existence in society. Led by thiscorporate philosophy, in addition to its threefold balanced management policy
consisting of “Growth,” “Profitability & Efficiency,” and “Soundness,” theMitsubishi Electric Group positions realizing sustainability as the core of its
management based on its roots of “addressing social challenges through ourbusinesses.” The Group will thus seek to sustainably increase its corporate value andfulfill its responsibilities to the stakeholders, including society, customers,
shareholders and employees. Furthermore, it will contribute to solving diversifyingsocial issues by fusing knowledge and co-creating within and outside the Group,transforming itself into a “Circular Digital-Engineering” company that provides
9enhanced component systems and data-based solutions.
Among these activities, in the area of the environment, the Mitsubishi ElectricGroup has positioned the realization of a decarbonized society as a key management
issue, and has formulated a long-term environmental management vision, the Group’s
Environmental Sustainability Vision 2050, with the aim to reach net zero emissionsof greenhouse gases throughout its entire value chain by fiscal 2051. As an interim
target, the Group aims to reduce greenhouse gas emissions from Group plants andoffices to net zero by fiscal 2031 and nurture businesses that contribute to thedecarbonization of society as a whole with the aim of realizing a decarbonized society.
Additionally, the Group will continue to strive to disclose the risks and opportunities
brought by climate change, based on the recommendations of the TCFD*1.
Also, the Group respects human rights of all people, recognizing broad
relationships with people and societies in countries and regions where the Group
operates the business and will continue to promote diversity to enable various humanresources to work actively.
Acceleration of Portfolio Strategies and Business Transformation under the
New Business Area Management Structure
The Company will further evolve and develop the Business Area (BA) management
structure to speedily implement business model transformation responding to socialchanges. BA Owners who supervise each BA will accelerate, through maximization of
the asset efficiency based on reallocation of resources with a bird’s eye view within the
BA and integration of technologies and know-how, such initiatives as solution of social
challenges by demonstrating synergies beyond walls of business groups, review of
portfolio strategies, and building of optimal organizations and systems according to thecharacteristics of each business of the BA, and at the same time, promote dynamic
collaboration of people and technologies among BAs and provision of the solution
business.
In addition, the “DX Innovation Center” was newly established in April 2023 withthe aim of accelerating transformation into the “Circular Digital-Engineering” company
that contributes to solving social challenges. The Center will build digital infrastructuresand spaces to organically link a broad range of data that is being accumulated at each BA
with the aim of creating and promoting various digital solution businesses, and accelerate
and promote such initiatives as data analysis and usage leveraging the aforementioned
infrastructures and spaces, securing and development of digital technology-oriented
human resources, and co-creation with customers and partners.

10Strengthening Business Structure
The global economy outlook is expected to slow down, particularly in Europe and the
U.S. due to monetary tightening in various countries, although consumption willcontinue to increase modestly owing to relaxation of movement restrictions.
Furthermore, as geopolitical risks increase, it is feared that the business environment
will change beyond our expectations.
Amid such a situation, in fiscal 2024, the interim year of the Medium-Term
Management Plan, we will review the progress up to date and implement various
measures of the key growth businesses toward achieving the Medium-Term
Management Plan by, for example, accelerating and driving the business restructuring
including M&As. Along with this, the Group will implement specific actions such as
further price pass-through given continued high material prices and logistics costs andacceleration of a resource shift through identification of underperforming businesses
and models and make investments in consideration of ROIC*2, a comprehensive
business efficiency indicator to improve profitability and capital efficiency. In addition,
looking at geopolitical risks in the supply chain, the Group will build a procurement
structure for optimal global production.
Furthermore, the Group will steadily promote the operation DX with the aim
to increase the sophistication of business management and improve productivity
utilizing data and digital technologies.
With regard to legal and ethical compliance, the Group takes its recent
product and service quality, work-related, and information security issues extremely
seriously and is promoting a number of reoccurrence prevention initiatives. Based on
the Mitsubishi Electric Group compliance motto of “Always Act with Integrity,” theGroup will diligently work to strengthen cross-organizational functions of head officecorporate divisions, build an internal control system that emphasizes predictive
indicators and prevention through visualization of risks and expansion of mechanisms
11

to prevent improper conduct, and formulate and operate a compliance program.
The Group also intends to continually improve its corporate governancethrough formulating and appropriately responding to guidelines based on Japan’s
Corporate Governance Codes, while striving for appropriate and timely disclosure of
information, in order to acquire a higher level of trust from society, customers,
shareholders, suppliers, and employees working together. The Company believes thathuman resources are the base for all business operations. We will create an environment
where various types of human resources can display their capabilities to the maximumby, for example, encouraging two-way communication allowing employees with new
ideas to work in cooperation and develop businesses as a team, nurturing humanresources who can address changes, and creating comfortable workplaces. Through these
initiatives, we aim to become a company where more people wish to work and continue
to work at the Mitsubishi Electric Group.
Steadily executing the strategies above, the Mitsubishi Electric Group will work tofurther enhance its corporate value. Looking ahead, the Group asks for theunderstanding and support of all its stakeholders.
1

TCFD (Task Force on Climate-related Financial Disclosures): A task force for the disclosure ofclimate-related financial information led by the private sector. The TCFD was established at therequest of the G20 Finance Ministers and Central Bank Governors.
2
ROIC (Mitsubishi Electric version): A comprehensive business efficiency indicator which is
calculated by asset items (fixed assets, working capital, etc.) per different segments (and not bycapital and liability) so that it is easier to track and improve performances of each businesssegment.

12

4. Topics
Received the Gold award in the PRIDE Index 2022
In November 2022, the Company received the Gold award in the “PRIDE Index*
2022” established by voluntary organization “work with Pride” as an index forevaluating initiatives regarding LGBTQ and other gender minorities (hereinafter,
LGBTQ) in workplaces in Japan. Following the Silver in the last year, the Company
received the “Gold” award for the first time because our continuous efforts for
LGBTQ were highly evaluated.
Going forward, we will proactively promote diversity across the entire Group,
aiming to realize a workplace environment where each and every employee can actively
work, exhibiting their full individual capabilities.
* The PRIDE index is an evaluation index, comprising of five letters representing Policy (affirmation ofaction), Representation (community of related parties), Inspiration (enlightenment activity),
Development (HR system and program), and Engagement/Empowerment (social contribution and PR
activities).

Won the Contract for the “New Japanese Geostationary Meteorological
Satellite (Himawari-10)”
In March 2023, the Company won the contract from the Japan Meteorological Agency(JMA) to build the nation's newest geostationary meteorological satellite (Himawari10), which will be the fourth straight such satellite to be built by Mitsubishi Electricfrom the Himawari-7.
We were awarded the contract based on a comprehensive evaluation from JMA
after making a proposal of the Company's proprietary “DS2000*” standard satellite
platform and ground-data processing software.
Also in the future, we will fully utilize our knowledge obtained by contributing
to the meteorological satellite business of Japan for over 20 years from Himawari-7 toincrease prediction accuracy of typhoons, localized heavy rain, or lengthy bands ofrain which are recently causing serious damage in Japan and improve meteorologicaldisaster prevention information, contributing to strengthening Japan’s disasterprevention functions.
*A standard satellite platform targeting the commercial communication and broadcasting satellite markets
to respond to increasing and diversifying demand for high-speed, large-capacity communication. This
platform with Engineering Test Satellite-VIII KIKU No. 8 of the Japan Aerospace Exploration Agency(JAXA) used as a base is also employed for MTSAT-2 multifunctional transport satellite (Himawari-7),
Himawari-8 and Himawari-9.

Constructed New Wafer Plant to Boost Sic Power Semiconductor Business
The Company will double the previous five-year investment plan*1 to approximately
260 billion yen from fiscal 2022 to 2026 in the Power Device Business.
As the energy-saving trend has been growing worldwide toward realizing
decarbonization, the market of the SiC*2 power semiconductor is rapidly expandingfor electric vehicles and is also projected to further expand for various applications
that require, for example, low energy loss, high temperature operation or high-speed
switching. The plan will also enable the Company to contribute to realizing green
transformation (GX). To respond to this expanding market, the Company will
construct a new plant to produce large-diameter (8-inch) SiC wafers. In addition, theCompany will enhance its production facilities for 6-inch wafers, aiming to further
expand the business.
*1*2

Approximately 130 billion yen for the previous plan
SiC (Silicon Carbide): compound of silicon and carbon
13

5. Research and Development(1) Research and Development Strategy
Toward realizing sustainability, the Company advances research and development,
aiming to provide solutions by fusing knowledge within and outside the Group as a
“Circular Digital-Engineering” company.
We thoroughly enhance core technologies that create a competitive advantage
for business, deepen fundamental technologies that support functions, properties,
quality and reliability of equipment, systems and services, and investigate and create
new technologies in a balanced way, preparing for a game change or any other eventin the future. The Company will also accelerate development and create value throughproactive cooperation with universities and other external R&D institutions,contributing to solving diversifying social issues.
During fiscal 2023, the total R&D expenses for the entire Group haveamounted to 212.3 billion yen (9% increase compared to the previous fiscal year).
(2) Major R&D Achievements in Fiscal 2023
Development of High-power, High-efficiency Power Semiconductor Module
Demand for a high-power, high-efficiency power semiconductor module has been
increasing for power systems such as a traction system for railway vehicles and DCpower transmitters.
The Company has developed a HV100 dual type X-Series HVIGBT* modulewith a high voltage of 4.5 kV and rated current of 450 A. The seventh-generation
IGBTs and RFC diode chips mounted have achieved higher current density with lower
loss compared to existing products. In addition, the terminal layout is optimized foreasy paralleling, which enables correspondence with various types of inverters.
We contribute to realizing carbon neutrality by making efforts to achieve further
higher power and higher efficiency of power semiconductor modules.
* HVIGBT: High voltage insulated gate bipolar transistor

Contributing to further higher power and higher efficiency of inverters for large industrial devices

Development of Wire-laser Metal 3D Printer AZ600
Demand for metal 3D printers that create objects from 3D shape data is expected toincrease due to such advantages as a significant reduction in manufacturing processes,
a reduction in waste materials disposed of in manufacturing processes and an increasein the freedom of designing. We recently developed a wire-laser metal 3D printer“AZ600” that combines the world’s first*1 simultaneous 5-axis spatial control anddigital manufacturing technology that cooperatively controls processing conditions,which enables high-quality, high-precision 3D printing. In addition, we apply a nearnet-shape method*2 to parts machining, which realized both energy saving by
shortening machining time and a reduction in waste materials.
Going forward, we will continue to contribute to environmentally friendly
manufacturing in a decarbonized era.
*1*2

As of February 24, 2022, according to Mitsubishi Electric’s research
A near-finished shape is formed.
Note: Although we announced the release of AZ600 on February 24, 2022, this information is included
here because the product’s major contributions to our business performance pertain to fiscal 2023.
14

Realized both energy saving by shortening machining time and a reduction in waste materials.

Development of “Quantum Artificial Intelligence Technology” That Uses
Automated Design to Realize Compact Inference Models
The development of quantum computers that exhibit advanced processing power
through computation using quantum bits*1 is accelerating around the world.
The Company has developed a quantum artificial intelligence technology that
automatically designs and optimizes inference models to downsize the scale ofcomputation and confirmed for the first time in the world*2 that the technology
contributes to higher performance in multiple areas such as non-destructive terahertz
inspections, Wi-Fi indoor monitoring, compressed sensing and biosignal processing.
This recently developed technologies allow for significantly shorten
computation time in a hybrid combination of both quantum and classical AI*3, evenwhen using limited data. Going forward, we will advance the development of quantum
artificial intelligence technology, aiming for its application to FA, air conditioning,building systems, mobility and a wide range of other industrial areas.
*1
*2
*3

Minimum unit of quantum information handled for quantum computers
As of December 2, 2022, according to Mitsubishi Electric’s research
Machine learning with conventional computers using classical bits

Can be incorporated in first-ever application for terahertz imaging

15

6. Trends in Operating Results and Financial Condition(Billions of yen, except per share data)(1) The Mitsubishi Electric Group (Consolidated)
149th Period
Fiscal 2020

150th Period
Fiscal 2021

151st Period
Fiscal 2022

152nd Period
Fiscal 2023

Revenue

4,462.5

4,191.4

4,476.7

5,003.6

Operating profit

259.6

230.1

252.0

262.3

Profit before income taxes

281.9

258.7

279.6

292.1

Net profit attributable to

221.8

193.1

203.4

213.9

¥103.41¥90.03¥95.41¥101.30

4,409.7

4,797.9

5,107.9

5,582.5

Mitsubishi Electric Corp.
stockholders
Basic earnings per share
attributable to Mitsubishi
Electric

Corp.

stockholders
Total assets

Note: Figures presented in the table above are based on the Consolidated Financial Statements prepared inaccordance with International Financial Reporting Standards (IFRS).

(2) Mitsubishi Electric Corporation (Non-Consolidated)
149th Period
Fiscal 2020

150th Period
Fiscal 2021

151st Period
Fiscal 2022

152nd Period
Fiscal 2023

Net sales
Ordinary income
Net income

2,639.2

2,459.2

2,557.4

2,712.1

143.2

177.5

172.9

163.3

157.8

185.5

179.3

146.2

Net income per share
Total assets¥73.59¥86.48¥84.11¥69.282,866.8

3,057.0

3,065.5

3,161.716

7. Principal Offices (As of March 31, 2023)(1) Mitsubishi Electric Corporation
1. Head Office: Tokyo
2. Marketing Bases:

Hokkaido Branch Office

Location(Prefecture)
Hokkaido

Chubu Branch Office

Location(Prefecture)
Aichi

Tohoku Branch Office
Kanetsu Branch OfficeMiyagi
SaitamaKansai Branch Office
Chugoku Branch OfficeOsaka
Hiroshima

Kanagawa Branch Office
Hokuriku Branch Office

Kanagawa
Ishikawa

Shikoku Branch Office
Kyushu Branch Office

KagawaFukuoka

Branch Name

Branch Name

3. Research Laboratories
Laboratory Name

Location(Prefecture)

Information Technology R&D
CenterKanagawa

Integrated Design Center

Kanagawa

Living Environment Systems
Laboratory
Design Systems Engineering
CenterKanagawa
Hyogo

Laboratory Name
Manufacturing Engineering
CenterComponent Production
Engineering Center
Advanced Technology
R&D Center
Automotive Electronics
Development Center

Location(Prefecture)
Hyogo
Hyogo
Hyogo
Hyogo

4. Manufacturing Facilities

Kamakura Works
Itami Works

Location(Prefecture)
Kanagawa
Hyogo

Transmission & Distribution Systems Center
Communication Networks Center

Hyogo
Hyogo

Communication Systems Center
Kobe Works

Hyogo
Hyogo

Energy Systems Center
Power Distribution Systems Center

Hyogo
KagawaNagasaki Works
Nagoya Works

Nagasaki
Aichi

Industrial Mechatronics Systems Works
Sanda Works

Aichi
Hyogo

Himeji Works
Fukuyama Works

Hyogo
Hiroshima

Gunma Works
Shizuoka Works

Gunma
Shizuoka

Segment

Infrastructure

Industry and Mobility

Life

Facility Name

17

Segment

Location(Prefecture)
Gifu

Facility Name
Nakatsugawa Works
Air-Conditioning & Refrigeration Systems
Works
Information Systems & Network Service
Division

Business Platform

Wakayama
Kanagawa

High Frequency & Optical Device Works
Power Device Works

Hyogo
Fukuoka

LCD Division

Kumamoto(Note) As regards “4. Manufacturing Facilities,” the following change was made as of April 1, 2023:
Infrastructure: Communication Systems Center changed its name to Electronics andCommunication Systems Center.

(2) Subsidiaries
Please refer to Section 11. Principal Subsidiaries.

8. Employees (As of March 31, 2023)
Segment

Number of
employees

Year-on-Year
increase (decrease)

Infrastructure
Industry and Mobility

21,84031,897

133
294

Life
Business Platform

61,833
11,557

2,585
608

OthersCommon16,575
5,953

27
312

Total

149,655

3,959

Notes: 1. Employees whose job and functions are not directly attributable to any of the aforementioned
business segments are included in the line titled as “common.”2. Breakdown of employees: 93,344 located in Japan; 56,311 located overseas.

9. Fund Raising
Mitsubishi Electric Corporation repaid the borrowings reaching their maturities
within fiscal 2023, while procuring working capital through loans from financial
institutions and other methods.
As a result, the balance of bonds and borrowings as of the end of fiscal
2023 stood at ¥252.2 billion, an increase of ¥35.0 billion compared with the previous
fiscal year.

18

10. Principal Lenders (As of March 31, 2023)
The Mitsubishi Electric Group has introduced a Group financing system, and is
striving to improve the efficiency of funding operations through aggregation andfinancing of funds between Group companies.
The main financial institutions providing loans to the Group as of the endof the fiscal year were as follows.
(Billions of yen)
Name of Lender
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
The Norinchukin Bank
Sumitomo Mitsui Trust Bank, Limited

Outstanding
Borrowings
76.5
31.3
28.1
14.8

The borrowings on the Company’s non-consolidated balance sheet include loans
from financial institutions and loans from associated companies received throughthe Group financing system.

19

11. Principal Subsidiaries (As of March 31, 2023)
Segment

Subsidiary Name

Principal Business Activities

Mitsubishi Electric Plant Engineering
Corporation
Infrastructure

Mitsubishi Electric TOKKI Systems
Corporation
Mitsubishi Electric Power Products, Inc.
SETSUYO ASTEC CORPORATION
DB Seiko Co., Ltd.

Industry andMobility

Mitsubishi Electric Automation(CHINA) Ltd.
Mitsubishi Electric Automotive America,Inc.
Mitsubishi Electric Building Solutions
Corporation
Mitsubishi Electric Lighting Corporation

Life

Mitsubishi Electric Consumer Products(Thailand) Co., Ltd.
Mitsubishi Electric Kang Yong Watana
Co., Ltd.
Mitsubishi Electric Information Network
Corporation
Melco Power Device Corporation

Business
Platform

Maintenance services for energy and electric
plants and equipment
Manufacturing and sales of radar applicationequipment, electronic application equipment,
and optical equipment
Manufacturing and sales of various transmission
and distribution equipment and electricalequipment for railway vehicles
Sales of factory automation equipment
Manufacturing and sales of automotive
equipment
Sales of factory automation equipment
Manufacturing and sales of automotive
equipment
Development, manufacturing, sales, installation,
maintenance, repair, etc. of elevator equipment,
building management systems, and otherbuilding equipment
Manufacturing and sales of lighting equipment,
lamps, and related components
Manufacturing and sales of air conditioning
equipment
Sales of air conditioning equipment and home
appliances

Mitsubishi Electric Trading Corporation
Mitsubishi Electric Logistics Corporation

Planning, design, development, and sales of
information systems
Manufacturing of power devices
Holding company of a power device businesscompany in Europe, etc.
Contractor undertaking electrical construction,
sales of the Company’s products
Procurement and sales of materials
Logistics and distribution

Mitsubishi Electric Europe B.V.

Sales and distribution of Group products

Mitsubishi Electric US, Inc.

Sales and distribution of Group products

Vincotech Holdings S.à r.l.
The Kodensha Co., Ltd.
OthersLocation

Tokyo

100.0

Tokyo

100.0

United States

100.0

Osaka

100.0

Hyogo

78.7

China

100.0

United States

100.0

Tokyo

100.0

Kanagawa

100.0

Thailand

90.0

Thailand

50.1

Tokyo

100.0

Hyogo

67.0

Luxembourg

100.0

Tokyo

51.2

Tokyo
Tokyo
The
Netherlands
United States

100.0
99.2

Number of Consolidated Subsidiaries
Infrastructure
27

Industry andMobility
42

Life

Business Platform

Others

Total

76

15

49

209

20

Ratio
of
VotingRights
Held
(%)

100.0
100.0

II. Matters Related to Mitsubishi Electric Corporation
1. Matters Related to Shares (As of March 31, 2023)(1) Authorized shares:
8,000,000,000 shares(2) Shares issued and outstanding
2,147,201,551 shares(3) Number of shareholders
117,501(4) Outstanding share information by shareholder category
Number of
Shareholders

Number of Shares
Held (Thousand
shares)Percentage
ofOwnership

0

0

0.0%

Financial institutions
Traders of financial
instruments

126

804,967

37.5%

81

56,153

2.6%

Other corporations

1,276

75,6283.5%

Foreign corporations et al.

1,014

911,35042.5%

115,004

299,101

13.9%

Category
Government and municipal
public organizations

Individual et al.

(5) Principal shareholders (Top 10)
Holdings of the Company’s Shares
Number of Shares
Percentage
Held (Thousandofshares)Ownership
332,483
15.7%
117,992
5.6%
106,4105.0%
81,862
3.9%
45,9792.2%
37,1781.8%
36,339
1.7%

Shareholder

The Master Trust Bank of Japan, Ltd. (Trust Account)
SSBTC CLIENT OMNIBUS ACCOUNT
Custody Bank of Japan, Ltd. (Trust Account)
Meiji Yasuda Life Insurance Company
Mitsubishi Electric Group Employees Shareholding Union
JP MORGAN CHASE BANK 380055
Nippon Life Insurance Company
STATE STREET BANK WEST CLIENT – TREATY
505234
JP MORGAN CHASE BANK 385781
THE BANK OF NEW YORK MELLON 140044

33,373

1.6%

25,63323,5161.2%
1.1%

Note: The Company owns 34,098,941 company-owned shares, but is excluded from the above list of principal
shareholders. Shareholder ratio calculations deduct company-owned shares (figures are rounded to thefirst decimal place).

(6) Status of the Company’s shares granted to the Company’s officers as
consideration for execution of duties during the fiscal year
As stated in “2. (3) 2) ii. Total Number of Shares Granted as Compensation for
Directors and Executive Officers” below.

21

2. Directors and Executive Officers(1) Directors (As of March 31, 2023)
1) Title, positions held and important concurrent posts of Directors
Title

Name

OutsideDirector

Mitoji Yabunaka

OutsideDirector

Hiroshi Obayashi

OutsideDirector

Kazunori Watanabe

OutsideDirector

Hiroko Koide

OutsideDirector

OutsideDirector

Takashi Oyamada

Tatsuro Kosaka

OutsideDirector

Hiroyuki Yanagi

Director

Kei Uruma

Director

Tadashi Kawagoishi

Director

Kuniaki Masuda

Director

Jun Nagasawa

Director

Kunihiko Kaga

Positions Held
Chairman of theBoard of Directors,
Chairman of theNomination
Committee,
Member of theCompensation
Committee
Chairman of the
Audit Committee,
Member of theNomination
Committee
Chairman of theCompensation
Committee,
Member of the
Audit Committee
Member of theNomination
Committee,
Member of theCompensation
Committee
Member of theNomination
Committee,
Member of the
Audit Committee
Member of theNomination
Committee,
Member of theCompensation
Committee
Member of theNomination
Committee,
Member of theCompensation
Committee－

Important Concurrent Positions

Specially Appointed Professor, Osaka
University

Attorney-at-Law
Outside Auditor, Daiwa Securities Co. Ltd.
Certified Public Accountant
Tax Accountant
Outside Corporate Auditor,
BELLSYSTEM24 Holdings, Inc.
Outside Director, J-OIL MILLS, Inc.
Outside Director, J.FRONT RETAILING
Co., Ltd.
Senior Advisor, MUFG Bank, Ltd.
Outside Director, Isetan Mitsukoshi
Holdings Ltd.
Outside Director of the Board, Kyowa Kirin
Co., Ltd.
Senior Advisor, Chugai Pharmaceutical Co.,Ltd.
Outside Audit & Supervisory Board
Member, Komatsu Ltd.
Adviser, Yamaha Motor Co., Ltd.
Outside Director, AGC Inc.
Non-executive Director of the Board, Kirin
Holdings Company, Limited
Outside Director, Japan Airlines Co., Ltd.
－

Member of the
Audit Committee
Member of theNomination
Committee
Member of theCompensation
Committee
Member of the
Audit Committee

－

－

－
－

－

22

Notes: 1. Directors Kei Uruma, Kuniaki Masuda and Kunihiko Kaga all concurrently serve as Executive Officers.
2. Outside Directors Tatsuro Kosaka and Hiroyuki Yanagi and Directors Jun Nagasawa and Kunihiko
Kaga were newly elected and took office at the 151st Ordinary General Meeting of Shareholders heldon June 29, 2022.
3. Director Hiroshi Obayashi retired from the positions of Outside Director, Audit & Supervisory
Committee Member of NIPPON STEEL CORPORATION as of June 23, 2022 and Outside Auditorof Japan Tobacco Inc. as of March 24, 2023.
4. Directors Masahiko Sagawa and Takashi Sakamoto retired upon the expiration of their terms of officeat the end of the 151st Ordinary General Meeting of Shareholders held on June 29, 2022.
5. Mr. Kazunori Watanabe, a member of the Audit Committee, is a certified public accountant. Mr.
Tadashi Kawagoishi, a member of the Audit Committee, has many years of extensive experience in the
Corporate Accounting and Finance Division of the Company. They both possess considerable
knowledge and experience in the fields of finance and accounting.
6. Mitsubishi Electric Corporation appointed Directors, namely, Messrs. Tadashi Kawagoishi and Jun
Nagasawa as the Standing Members of the Audit Committee to attend important meetings such as
Executive Officer meetings, collect information including from Internal Auditors, conduct
investigations such as interview with the execution divisions and other sections in a continuous andeffective manner, while sufficiently cooperating with the divisions in charge of internal control.
7. Mitsubishi Electric Corporation has filed a notification on the nomination of its seven Outside
Directors, namely, Messrs. Mitoji Yabunaka, Hiroshi Obayashi, Kazunori Watanabe, Takashi Oyamada,
Tatsuro Kosaka and Hiroyuki Yanagi and Ms. Hiroko Koide, as Independent Directors to the Tokyo
Stock Exchange in accordance with its directives and on the grounds that these individuals’ nomination
is in conformity with the requirement of independency.
Seven Outside Directors, namely, Messrs. Mitoji Yabunaka, Hiroshi Obayashi, Kazunori Watanabe,
Takashi Oyamada, Tatsuro Kosaka and Hiroyuki Yanagi and Ms. Hiroko Koide, satisfy therequirement of independency guidelines of Outside Directors of the Company.
8. Among the important concurrent positions of outside directors, the Company maintains business
relationships with Osaka University, Daiwa Securities Co. Ltd., MUFG Bank, Ltd., Komatsu Ltd.,
Yamaha Motor Co., Ltd. and AGC Inc. It does not maintain special relationships with any of thesethat would conflict with the interest of its shareholders.

232) Overview of the limited liability agreements
Mitsubishi Electric Corporation made and entered into agreements with seven
Outside Directors, namely, Messrs. Mitoji Yabunaka, Hiroshi Obayashi, Kazunori
Watanabe, Takashi Oyamada, Tatsuro Kosaka and Hiroyuki Yanagi and Ms. Hiroko
Koide, and two Directors, namely, Messrs. Tadashi Kawagoishi and Jun Nagasawa tolimit their liability as stipulated in Article 423, Paragraph 1 of the Companies Act.
Based on these agreements, the limit of liability is either ¥10 million or the minimum
statutory amount, whichever is higher.
3)

Principal activities of Outside Directors
Name

MitojiYabunaka

Hiroshi
ObayashiKazunori
Watanabe

HirokoKoide

TakashiOyamadaPrincipal Activities and Overview of Duties Performed in Their Expected Roles
He sufficiently fulfills the role expected of an Outside Director while also serving as the Chairmanof the Board of Directors and the Chairman of the Nomination Committee, by attending Boardof Directors’ meetings, Nomination Committee meetings, and Compensation Committee
meetings, where he proactively expresses opinions based on his wide range of experience anddeep insight into the fields of governance, human resources and human resources development,
and global affairs, and oversees the management of the Company.
100% (thirteen out of thirteen) attendance at Board of Directors’ meetings.
He sufficiently fulfills the role expected of an Outside Director while also serving as the Chairmanof the Audit Committee, by attending Board of Directors’ meetings, Nomination Committee
meetings, and Audit Committee meetings, where he proactively expresses opinions based on his
wide range of experience and deep insight into the fields of governance, legal affairs andcompliance, and human resources and human resources development, and oversees the
management of the Company.
100% (thirteen out of thirteen) attendance at Board of Directors’ meetings and 100% (fifteen out
of fifteen) attendance at Audit Committee meetings.
He sufficiently fulfills the role expected of an Outside Director while also serving as the Chairmanof the Compensation Committee, by attending Board of Directors’ meetings, Audit Committee
meetings, and Compensation Committee meetings, where he proactively expresses opinions
based on his wide range of experience and deep insight into the fields of governance, finance andaccounting, and human resources and human resources development, and oversees the
management of the Company.
100% (thirteen out of thirteen) attendance at Board of Directors’ meetings and 100% (fifteen out
of fifteen) attendance at Audit Committee meetings.
She sufficiently fulfills the role expected of an Outside Director by attending Board of Directors’
meetings, Nomination Committee meetings, and Compensation Committee meetings, where she
proactively expresses opinions based on her wide range of experience and deep insight into thefields of corporate management and corporate strategies, governance, human resources andhuman resources development, and global affairs, and oversees the management of the Company.
100% (thirteen out of thirteen) attendance at Board of Directors’ meetings.
He sufficiently fulfills the role expected of an Outside Director by attending Board of Directors’
meetings, Nomination Committee meetings, and Audit Committee meetings, where heproactively expresses opinions based on his wide range of experience and deep insight into thefields of corporate management and corporate strategies, governance, finance and accounting,and human resources and human resources development, and oversees the management of theCompany.
100% (thirteen out of thirteen) attendance at Board of Directors’ meetings and 100% (fifteen out
24

of fifteen) attendance at Audit Committee meetings.

25

Tatsuro
KosakaHiroyuki
YanagiHe sufficiently fulfills the role expected of an Outside Director by attending Board of Directors’
meetings, Nomination Committee meetings, and Compensation Committee meetings, where heproactively expresses opinions based on his wide range of experience and deep insight into thefields of corporate management and corporate strategies, governance, global affairs, andengineering, manufacturing and R&D, and oversees the management of the Company.
100% (ten out of ten) attendance at Board of Directors’ meetings.
He sufficiently fulfills the role expected of an Outside Director by attending Board of Directors’
meetings, Nomination Committee meetings, and Compensation Committee meetings, where heproactively expresses opinions based on his wide range of experience and deep insight into thefields of corporate management and corporate strategies, governance, global affairs, andengineering, manufacturing and R&D, and oversees the management of the Company.
90% (nine out of ten) attendance at Board of Directors’ meetings.

Notes: 1. Mitsubishi Electric Corporation held thirteen Board of Directors’ meetings during the fiscal year.
The status of attendance for Outside Directors Tatsuro Kosaka and Hiroyuki Yanagi is based on thenumber of the Board of Directors’ meetings held after they assumed office on June 29, 2022.
2. After June 2021, improper quality control practices were found at multiple manufacturing facilities of
the Company and the final report was announced in October 2022. The Outside Directors were
unaware of these practices. However, they had constantly called the attention of the Company’s
Board of Directors to relevant issues in the interest of ensuring compliance. After the incident, theOutside Directors provide advice and instructions at the Board of Directors and other relevant bodies
regarding enhancement of the system, making rigorous investigations to uncover the full extent of theissue and its causes, and monitoring progress of reform in three key areas in order to prevent therecurrence of similar incidents.

26

(2) Executive Officers (As of March 31, 2023)
Title
Representative Executive
OfficerPresident & CEO

Name

Positions Held/ResponsibilitiesCEO

Kei Uruma

Representative Executive
Officer
Senior Vice President

Tadashi Matsumoto

Executive Officer
Executive Officer

Yoshihisa Hara
Atsuhiro Yabu

Life Business Area Owner (Group President,
Building Systems, Representative Director andPresident, Mitsubishi Electric Building Solutions
Corporation), in charge of Export Control
Group President, Electronic Systems

Group President, Automotive Equipment
CRO (In charge of Legal Affairs & Compliance,
Risk Management, Economic Security and Export
Executive Officer
Satoshi KusakabeControl)
CMPO (In charge of Purchasing), CCO (VicePresident, Corporate Communication, In charge of
Executive Officer
Yoji Saito
Government & External Relations)
Infrastructure Business Area Owner (Group
Executive Officer
Noriyuki Takazawa
President, Energy & Industrial Systems)
Group President, Living Environment & Digital
Executive Officer
So Suzuki
Media Equipment
Business Platform Business Area Owner (Group
President, Information Systems & Network
Service), CIO (In charge of Information Security
Executive Officer
Eiichiro Mitaniand IT, Vice President, Corporate Process &Operation Reengineering)
Vice President, Corporate Total Productivity
Executive Officer
Shozui Takeno
Management & Environmental Programs
In charge of Auditing, CSO (In charge ofCorporate Strategic Planning and Operations of
Executive Officer
Kunihiko Kaga
Associated Companies), CTO (In charge ofTechnology Strategies)
CMO (In charge of Global Marketing, Vice
Executive Officer
Katsuya Furuta
President, Corporate Marketing)
CFO (In charge of Accounting and Finance),
CHRO (In charge of General Affairs and Human
Executive Officer
Kuniaki Masuda
Resources)
In charge of Intellectual Property, Vice President,
Executive Officer
Tomonori Sato
Corporate Research and Development
CPO (In charge of Manufacturing), CQO (VicePresident, Corporate Quality Assurance
Executive Officer
Yoshikazu Nakai
Reengineering)
Industry and Mobility Business Area Owner
Executive Officer
Satoshi Takeda(Group President, Factory Automation Systems)
CDO (Vice President, Corporate Business
Executive Officer
Hiroshi Sakakibara
Innovation)
Notes: 1. Representative Executive Officer, President & CEO Kei Uruma, Executive Officers Kunihiko Kagaand Kuniaki Masuda also serve concurrently as Directors.
2. The category, Important Concurrent Positions, does not apply to all 17 Executive Officers.
27

3. Of those listed above, Executive Officers Yoshihisa Hara, So Suzuki, Shozui Takeno and Katsuya
Furuta retired upon the expiration of their terms of office on March 31, 2023.

28

(Reference) Executive Officers as of April 1, 2023 are as follows:
Title

Positions Held/Responsibilities

Name

Representative Executive
Officer
Kei Uruma
President & CEOCEOLife Business Area Owner (Senior General
Manager, Life BA Strategic Planning Office,Representative Director and President, Mitsubishi
Electric Building Solutions Corporation), In chargeof Export Control
Industry and Mobility Business Area Owner(Senior General Manager, Industry and Mobility
BA Strategic Planning Office), CTO (In charge ofTechnology Strategies)

Representative Executive
Officer
Tadashi Matsumoto
Executive Vice President
Representative Executive
Officer
Kunihiko Kaga
Senior Vice President

Senior Vice President

Noriyuki Takazawa

Infrastructure Business Area Owner (Senior
General Manager, Infrastructure BA Strategic
Planning Office)Executive Officer

Atsuhiro Yabu

Group President, Automotive Equipment

Executive Officer

Satoshi Kusakabe

CRO (In charge of Legal Affairs & Compliance,
Risk Management, Economic Security and Export
Control)
CMO (In charge of Global Marketing andAdvertising, Vice President, Corporate Marketing),
In charge of Government & External Relations
Business Platform Business Area Owner (Senior
General Manager, Business Platform BA Strategic
Planning Office, Group President, Information
Systems & Network Service), CIO (In charge ofInformation Security and IT, Vice President,
Corporate Process & Operation Reengineering)

Executive Officer

Yoji Saito

Executive Officer

Eiichiro Mitani

Executive Officer

Kuniaki Masuda

CFO (In charge of Accounting and Finance)

Executive Officer

Tomonori SatoGroup President, Defense & Space Systems

Yoshikazu Nakai

CPO (In charge of Manufacturing, Vice President,
Corporate Total Productivity Management &Environmental Programs), CQO (Vice President,
Corporate Quality Assurance Reengineering)

Executive Officer

Executive Officer

Satoshi Takeda

Executive Officer

Hiroshi Sakakibara

Executive Officer

In charge of Auditing, CSO (In charge ofCorporate Strategic Planning, IR and SR,
Operations of Associated Companies, Three Key
Reforms and Sustainability)
CDO (In charge of DX, Vice President, Corporate
Business Innovation)
CHRO (In charge of General Affairs and Human
Resources, Senior General Manager, Corporate
Human Resources Div.), In charge of Public
Relations

Yasunari Abe

29

Note:

Details of Executive Officers (Associate)
Based on the company-wide management policy, the Company has appointed Executive Officers(Associate) who make decisions on overall management and execute business in relation to sections
within their purview. Executive Officers (Associate) as of April 1, 2023 are as follows.
Title
Name
Positions Held/Responsibilities

Executive Officer(Associate)
Executive Officer(Associate)
Executive Officer(Associate)
Executive Officer(Associate)
Executive Officer(Associate)
Executive Officer(Associate)

Shigeki Kawaji
Kenichiro FujimotoOverseeing Accounting and Finance, Senior
General Manager, Corporate Accounting Div.

Masayoshi Takemi

Group President, Semiconductor & Device

Hideto NegoroGroup President, Public Utility Systems

Masahiro Oya

Vice President, Global Strategic Planning &MarketingExecutive Officer(Associate)

Iwao Oda

Executive Officer(Associate)

Hiroshi Tsuchimoto

Executive Officer(Associate)
Executive Officer(Associate)Group President, Living Environment & DigitalMedia Equipment
In charge of Purchasing, Senior General Manager,
Corporate Purchasing Div.

Yasumichi Tazunoki

Group President, Building Systems, Representative
Director and Vice President, Mitsubishi Electric
Building Solutions Corporation
Senior General Manager, Corporate Strategic
Planning Div.

Toshie Takeuchi

Group President, Factory Automation Systems

Soichi Hamamoto

Group President, Energy & Industrial Systems

Executive Officer(Associate)

Toru Oka

Executive Officer(Associate)

Michael Corbo

In charge of Intellectual Property, Vice President,
Corporate Research and Development
Representative of Americas, Global Strategic
Planning & Marketing
President, Mitsubishi Electric US Holdings, Inc.
President & CEO, Mitsubishi Electric US, Inc.

30

(3) Directors’ and Executive Officers’ Compensation for Fiscal 2023
1) The Policy for Determining Compensation for Directors and Executive
Officers
The policy for determining compensation for Directors and Executive Officers
are deliberated upon and decided by the Compensation Committee, a majority ofwhich is comprised of outside directors, including the chairperson. The policy is
as follows. If a Director concurrently serves as an Executive Officer, the policy
for determining compensation, etc. for Executive Officers is applied.
i
Basic Policies
As a Company with a Three-committee System, the Company segregates thesupervisory function and the execution function of management. The
supervisory function of management is assigned to the Directors and the Boardof Directors and the execution function of management is assigned to the
Executive Officers. The compensation scheme for Directors and thecompensation scheme for the Executive Officers will be set differently,
corresponding to the contents and responsibilities of each duty and position. The
compensation will be determined by the Compensation Committee based on thefollowing basic policies:(a) Directorsa.
The compensation scheme should encourage the Directors todemonstrate their supervisory function of management.
b.
The compensation should be the amount necessary to secure
suitable talent to fulfill the responsibilities of the Company’s Directors.
(b) Executive Officersa.
The compensation scheme should observe the corporate
philosophy of the Mitsubishi Electric Group, and be fully accountable toall stakeholders including society, customers, shareholders, and employees.
b.
The compensation scheme should encourage the execution ofduties in line with management strategies and provide strong incentives
to achieve management goals.
c.
The compensation scheme should function as an incentive forsustained performance growth and the improvement of corporate value.
d.
The compensation scheme should reflect a fair and impartial
evaluation of the achievements and contributions toward their respectiveroles and responsibilities.
ii. The system for determining compensation(a) Directors
The compensation scheme for Directors shall consist exclusively of basic
31

compensation (fixed compensation), in light of the Directors’ role to provide
advice and supervise management from an objective and independent
perspective.
(b) Executive Officers
The compensation scheme for Executive Officers shall be as follows, with
an emphasis on the improvement of medium-term corporate value andshareholder value.
■Compensation Structure (Percentage of compensation is that of the
President & CEO)a.
Basic compensation
Fixed compensation is set in accordance with the roles and responsibilitiesof each Executive Officer and is paid monthly in cash by dividing theposition-based annual standard amount by 12.
b.
Performance-based bonus
The performance-based bonus consists of “Corporate Performance
Evaluation” and “Individual Evaluation.” Toward the implementation
and achievement of targets of important indicators, priority measures, etc.
in the Medium-Term Management Plan, consolidated revenue and theconsolidated operating profit ratio are used as evaluation indicators for“Corporate Performance Evaluation.” For “Individual Evaluation,” as anevaluation indicator, non-financial targets are determined for each32

Executive Officer. For Executive Officers who control a Business Group,
actual results of their Business Group as well as non-financial targets areused as evaluation indicators. The amount to be paid is determined inaccordance with the status of achievements of these indicators.
The payment amount for each individual will fluctuate in the range of 0%
to 200% and shall be calculated as below and paid in a lump sum in cash
after the end of each fiscal year.
Individual payment
amount＝Position-based standard amount × (Corporate performance
evaluation coefficient + Individual evaluation coefficient)(in the range of 0-200%)■Determination of corporate performance evaluation coefficients* The target, minimum and maximum are those for the fiscal 2023.
■Determination of individual evaluation coefficients
The targets for the President and CEO shall be determined throughthe deliberation of the Compensation Committee at the beginning of
the fiscal year.
Evaluations shall be made after the end of the fiscal year, bydeliberation and decision by the Compensation Committee following aself-evaluation by the President and CEO.
Targets and evaluations of other Executive Officers are discussed andapproved by the Compensation Committee after a meeting between
the President and CEO and each Executive Officer.

33

■Evaluation indicators, ratios, targets, performance results andevaluation coefficient for fiscal 2023
Evaluation ratios
Evaluation indicators

Other
Presiden
Executit&veCEOOfficers

Corporate performance
evaluation

Consolidated
revenue

35%

25%

Consolidated
operating profit
ratio

35%

25%

Individual evaluation

30%

50%

Performance
results

Targets, etc.

Maximum
TargetMinimum (Threshold)Maximum

5,250.0 billion yen
4,770.0 billion yen
4,530.0 billion yen
7.5%

Evaluation
coefficient

5003.6 billion yen

148.7%

5.2％

58.3％

Based on evaluation
Set specific targets for each Executive Officer
against individual
based on the priority measures in FY2026
targets and businessMedium-Term Management Plan, “Three
performance of theReforms” to restore trust, ESG promotion, andbusiness group in
performance of the business group in charge.
charge, etc.

－

Target

5.7%

Minimum (Threshold)

5.1%

c.
Performance-based stock compensation (PSU)*
In principle, the number of shares to be issued as performance-based
stock compensation (PSU) varies between 0% and 200%, depending on
the comparison result (in percentile) between the Company’s TSR (total
shareholder return) for the three years and the TSR of a pre-selectedgroup of comparable companies. The comparable companies are selectedfrom domestic and overseas companies in the business areas in which theCompany operates. The number of shares to be delivered to eachindividual is calculated as follows:* PSU: Performance Share Units

Number of shares delivered to each individual＝Standard PSU points for the position × PSU grant rate
(in the range of 0-200%)■Determination of PSU grant rate
[TSR percentile vs comparable companies]

34

200%
150%

PSU grant rate

100%
50%
0%
0%ile 25%ile 50%ile 75%ile 100%ile
TSR percentile (%ile Rank)■PSU of which evaluation period ended in fiscal 2023
There is no performance-based stock compensation (PSU) for which theevaluation period ended in this fiscal year, as it was introduced in fiscal
2023.
d.
Restricted Stock Units (RSU)*
In order to promote continuous shareholding and shareholder value
during the term of office, the Restricted Stock Unit (RSU) program shall,in principle, deliver shares, with transfer restrictions, equivalent to thestandard amount for the position at the end of each fiscal year. The
transfer restrictions shall be lifted at retirement (when the Company’s
Director or Executive Officer retires from his/her position).
* RSU:

Restricted Stock Unitiii. Method of setting compensation levels and compensation composition ratios
The compensation levels and compensation composition ratios of Directors
and Executive Officers are set each year according to their roles andresponsibilities based on a comparison with market compensation levels using
compensation survey data of external professional organizations. When
comparing with market compensation levels, major domestic manufacturers
similar to the Company in terms of scale, type of business, global expansion,etc., are selected as the compensation benchmark group.
(a) Directors
The basic compensation levels of Directors are set in consideration of thecompensation levels of non-executive internal directors and outside
directors of the compensation benchmark companies, their roles andresponsibilities, and other factors.
(b) Executive Officers
35

The compensation, etc. of Executive Directors is set in consideration of thetrends in compensation levels of executive officers at the compensation
benchmark companies, the management strategy and business environmentof the Company, the objectives of incentive compensation and the degree ofdifficulty in achieving the targets, the roles and responsibilities of the
Executive Officer concerned and other relevant factors. Additionally, fromthe perspective of pay-for-performance, the compensation composition has
been set with a higher ratio of incentive compensation to place greater
emphasis on the link between performance and the medium- and long-term
improvement of corporate value and shareholder value. The composition ofstandard compensation for fiscal 2023 is as follows.
■Composition of standard compensation for fiscal 2023

* The ratio of “Basic compensation: Performance-based bonus: Stockcompensation (PSU + RSU)” is “1: 1: 1” for the President & CEO, andwithin the range of “1: (0.67 to 0.8): (0.67 to 0.8)” for the other Executive
Officers. The ratio has been set so that the higher the position of the
Executive Officer, the greater the ratio of variable compensation. The
weight of short-term and medium- to long-term are considered to be thesame, and the ratios of performance-based bonus and stock compensation
have been equally set.
iv. Compensation governance
The Company’s Compensation Committee has the authority to determine thedetails of compensation, etc. for individual Directors and Executive Officers of
the Company. It mainly determines the policies for determining executive
compensation etc., the details of compensation, etc. for individual Directors andExecutive Officers, company-wide performance evaluations related to the
incentive compensation of Executive Officers, and the individual evaluations of36

Executive Officers. The Compensation Committee is chaired by an Outside
Director.
v. Stock ownership guidelines
We believe it is important to ensure that our Executive Officers share the samevalue with our shareholders on a long-term and sustainable basis. To this end, we
have established the following stock ownership guidelines and require Executive
Officers to continuously hold the Company’s stock during their term of office inan amount equal to or higher than a target amount, even after the target amount
has been reached.
[Stock Ownership Guidelines]
Targeted holdings to be achieved within four years of assuming the position
PositionTarget amountPresident & CEO
1.3 times
The multiple to be applied to the
Senior Vice President
1.0 times
annual basic compensation
Executive Officer
0.8 times
vi. Malus and clawback provisions
The Company shall introduce “malus and clawback provisions” so that, in theevent of any material misconduct or violation by an Executive Officer, or in
the event of any material revision to the financial results of prior fiscal years,
the Compensation Committee may, by resolution, demand that such
Executive Officer forfeit his/her right to receive incentive compensation(malus) or return his/her paid compensation (clawback). The compensationthat may be subject to these provisions shall be performance-based bonuses
to be paid or already paid, points granted before the delivery of shares andshares before the lifting of transfer restrictions, and some or all of the sharesalready delivered.
2) Total amount of compensation for Directors and Executive Officers (for fiscal
2023)
i.
Total Amount of Compensation for Directors and Executive Officers
Category

Directors
OutsideTotal Compensation Amount by Type

NumberReceiving
Payment

Total
Compensation
Amount(Millions of yen)

Basic
Compensation(Millions of yen)

4
7

120
122

108
122
37

Performance-

Performance

Restrictedbased bonus

Share Unit

Stock Unit

(Millions(Millions of (Millionsof yen)yen)of yen)
－
－
－
－
－
－

Retirement
Benefit(Millions of
yen)
12
－

Directors
Executive
17
1,645
686
479
335
143
Officers
Notes: 1. The number of Directors receiving compensation does not include Outside Directors or Directors who
concurrently hold posts as Executive Officers.
2. Regarding Executive Officers who assumed the office in the 151st fiscal year, there was a difference
amounting to 59 million yen between the total compensation disclosed for the previous fiscal year andthe compensation paid during fiscal 2023. Said difference was not included in the amount disclosed
above.
3. The amount of performance-based bonus is a reserve amount for a bonus as of the end of March 2023
to be paid to applicable Executive Officers in June 2023 for the target period from April 2022 to March
2023.
4. The amount of the Performance Share Unit is a reserve amount for stock compensation as of the endof March 2023 to be granted to applicable Executive Officers after the TSR evaluation period (three
years) for the target period from April 2022 to March 2023.
5. The amount of the Restricted Stock Unit is the total amount of compensation for shares with transfer
restrictions granted to applicable Executive Officers in March 2023 for the target period from April
2022 to March 2023.
6. The Company has adopted the BIP (Board Incentive Plan) Trust for the Performance Share Unit andRestricted Stock Unit whereby shares will be granted to Executive Officers after the TSR evaluation
period (three years) for the Performance Share Unit and after the vesting period (one year) for the
Restricted Stock Unit.
7. With regard to the retirement benefits for Directors and Executive Officers, the retirement benefits were
terminated for Directors after the conclusion of the Ordinary General Meeting of Shareholders held in
June 2021, and for Executive Officers from April 1, 2021. Directors and Executive Officers who
assumed office prior to the termination date of retirement benefits shall be paid retirement benefits atthe time of retirement for the term of office until the termination date of the retirement benefits, inaccordance with the Regulations on the Retirement Benefits of Directors and Executive Officers
determined by the Compensation Committee.
8. With serious consideration of the improper quality control practices, the basic compensation for April
2022 and the period from November 2022 to January 2023 for relevant Executive Officers has been
partly reduced based on the decision by the Compensation Committee.

ii. Total Number of Shares Granted as Compensation for Directors and Executive
Officers
Number of Shares Granted
Number of Recipients
Executive
Officers
andDirectors (excluding Outside
391,018
36
Directors)
Outside Directors
Notes: 1. The above includes former Directors and Executive Officers.
2. The above number of shares granted is the number of shares that were actually granted to Directors
and Executive Officers. Of the shares that Directors and Executive Officers are entitled to be
granted, 287,507 shares have been converted in the trust and delivered as cash equivalent to thedisposal price, based on the regulations for granting shares.

3) The Grounds for Determination by the Compensation Committee that the Details
of Compensation Given to Individuals Observe the Determination Policy for
Fiscal 2023
With regard to the determination of the amount of compensation given to
individual Directors and Executive Officers, the Compensation Committee met
eleven times during the period from April 2022 and March 2023. In the
deliberations by the Compensation Committee, compensation consultants from an38－

external professional organization with global experience and knowledge were
employed with the aim to introduce outside objective points of view andspecialized knowledge and information on the executive compensation scheme.
The basic compensation to individual Directors and Executive Officers has been
deliberated and determined by the Compensation Committee by utilizing external
data on the compensation of major companies in Japan operating globally andtaking into account the contents of the duties of the Directors and Executive
Officers. Furthermore, as for the retirement benefits paid to Directors andExecutive Officers who retired during fiscal 2022 or 2023, their individual
payments were determined by the Compensation Committee, based on theRegulations on the Retirement Benefits of Directors and Executive Officers
formulated under the policy prior to the revision. Based on the above, theCompensation Committee has determined that the details of compensation given
to individuals observe the determination policy.

39

3. Matters Related to the Directors and Officers Liability Insurance (D&O
Insurance)
The Company has concluded a directors and officers liability insurance (D&O
Insurance) agreement provided in Article 430-3, Paragraph 1 of the Companies Act
with an insurance company. The scope of the insured under this insurance policy
includes the Company, the Company’s executives, important employees, dispatched
Outside Directors, and their heirs. This insurance policy shall compensate fordamages and legal expenses to be borne by the insured, in the event of a claim fordamages submitted by a shareholder or third party, etc. However, claims for damages
arising from criminal acts by the executives, etc. shall be exempt from compensation.
All insurance premiums shall be borne by the Company.
4. Status of the Independent Auditor(1) Name of the Independent Auditor
KPMG AZSA LLC(2) Compensation Paid to the Independent Auditor in Fiscal 2023
(Millions of yen)
Payment
1) Compensation and other payments to the Independent Auditor by Mitsubishi
Electric Corporation

2962) A total of financial returns payable on monetary and other assets by Mitsubishi
559
Electric Corporation and its subsidiaries
Notes: 1. In its auditing agreements with independent auditors, the Company makes no distinction between
compensation for audits as defined by the Companies Act or for audits as defined under the Financial
Instruments and Exchange Law. The total of compensation for such audits is included in 1) in the abovetable.
2. Aside from audit work defined in Article 2, Paragraph 1 of the Certified Public Accountant Law,
Mitsubishi Electric Corporation has paid the Independent Auditor a fee for advisory services related toassessment of the Company’s accounting operations.
3. Eight of the Company’s principal overseas subsidiaries have been audited by audit corporations inalliance with the Independent Auditor retained by Mitsubishi Electric Corporation.
4. Audit Committee determined that the compensation for Independent Auditors were legitimate andagreed to the amount, as it was based on the estimated audit hours taking into account the audit policies
and plans for fiscal 2023, which were confirmed with the Independent Auditors, and as thecompensation unit price was a reasonable amount.

(3) Policy on Dismissal or Non-Reappointment of the Independent Auditor
1) The Independent Auditor may be dismissed in the event that it:a. Commits any breach or omission of due fulfillment of the responsibilities
of its work;b. Acts in a manner that is inappropriate for an independent auditor; or,c. Is involved in any sort of incident or activity that is deemed to fall within
the scope of (a) and (b) above.
2) In addition to the event as contemplated in 1) above, for such reasons as (but notlimited to) amelioration of the audit quality, the Company may opt, as necessary,40not to renew the retention or appointment of the Independent Auditor.

41

5. Summary of Systems Necessary to Ensure the Properness of Operations of
the Company and the Status of the Management(1) For the execution of the duties of the Audit Committee, its independence issecured by assigning employees whose job is exclusively to assist the Audit Committee
members. In addition, internal regulations regarding the processing of expenses anddebts incurred in the execution of the duties of the Audit Committee members are
established and such expenses and debts are properly processed.
A system for reporting to the Audit Committee is developed to report
information about the Company and its subsidiaries to the Audit Committee via thedivisions in charge of internal control, and an internal whistle-blower system isdeveloped and its details are reported to the Audit Committee members.
Furthermore, the Audit Committee members attend important meetings
including Executive Officer meetings, hold discussions with Executive Officer, etc.,
and conduct investigations such as interviews with the executives of the Company’s
offices and subsidiaries, and undertake deliberations to determine audit policies,
methods, implementation status, and results of the audit by regularly receiving reports
from the Independent Auditor and Executive Officers in charge of audits.
(2) Internal regulations and systems to ensure the properness of operations within the
Mitsubishi Electric Group are established. Executive Officers take responsibility forconstructing such systems within the areas over which they are appointed. Importantmatters are deliberated by convening Executive Officer meetings.
Executive Officers regularly monitor the status of management of the systems.
The divisions in charge of internal control monitor the status of design andmanagement of internal control system and regulations. Also an internal whistleblower system is established and the matters reported thereto are informed to the
Audit Committee members.
Furthermore, the status of management of the system is audited by internal
auditors, and the audit results are reported regularly to the Audit Committee via
Executive Officers in charge of audit.
Details of this section are posted on the Company’s Website(https://www.MitsubishiElectric.com/en/investors/meeting/).

42

6. Basic Policy Regarding Control over the Company
At present, Mitsubishi Electric Corporation has not formulated basic policies or antitakeover measures.
The Company aims to further enhance corporate value in incessant pursuit ofgrowth and better-than-ever business results. Through proactive IR activities, theCompany endeavors to convey timely information to investors and financial markets,regarding its management policies, strategies and business results.
However, due to the possibility that large volumes of shares may be purchased,
the Company believes it is necessary to take appropriate steps in response to any
action not in conformity with the objective of enhancing the Company’s corporate
value, or in contrary to the common interest of shareholders. Looking forward, theCompany will maintain a careful watch over social trends and examine avenues ofaction.
7. Policy on the Determination of Dividends from Surplus(1) Medium- to long-term policy
Mitsubishi Electric Corporation shall remain focused on enhancing corporate
value as its ultimate objective. The Company aims to maintain a balance between
distributing profits that reflect earnings conditions for the respective fiscal year
and strengthening its financial standings by improving internal reserves. From thisperspective, the Company’s fundamental policy is to improve overall shareholder
returns.
(2) Dividends for the fiscal year ended March 31, 2023
In the fiscal year ended March 31, 2023, Mitsubishi Electric Corporation decided
to pay a fiscal year-end dividend of ¥26 per share in line with its performance andfinancial standing during the fiscal period.
As a result, the annual dividend for the fiscal year ended March 31, 2023,
amounted to ¥40 per share, which includes an interim dividend of ¥14 per sharepaid on December 2, 2022.
Note: Fiscal year-end dividends will be paid on Friday, June 2, 2023.

43

Consolidated Financial Statements
Consolidated Statement of Financial Position(March 31, 2023)(Millions of yen)

AssetsCurrent assets

Liabilities
1,802,826

Property, plant andequipment
Goodwill and intangible
assetsDeferred tax assets

3,388,187 Current liabilities
Bonds, borrowings and lease
645,870
liabilities
1,051,641
Trade payables
295,291
Contract liabilities
60,953
Other financial liabilities
1,209,254
Accrued expenses
125,178
Accrued income taxes
2,194,332
Provisions
Other current liabilities
236,785
Non-current liabilities
Bonds, borrowings and lease
358,598
liabilities
Other financial liabilities
896,313Net defined benefit liabilities
Provisions
190,601
Deferred tax liabilities
154,441
Other non-current liabilities

Other non-current assets

357,594

2,219,295

Cash and cash equivalents
Trade receivables
Contract assets
Other financial assets
Inventories
Other current assets
Non-current assets
Investments accounted forusing the equity method
Other financial assets

Total liabilities

186,304
644,456
239,228
174,891
332,788
46,617
121,891
56,651
416,469
214,454930
153,8213,824
7,762
35,678EquityMitsubishi Electric Corp.
stockholders’ equity
Common stock
Capital surplus
Retained earnings
Accumulated othercomprehensive income (loss)
Treasury stock, at costNon-controlling interests

Total assets

5,582,519

44

3,239,027
175,820
202,8882,636,136
276,898(52,715)
124,197

Total equity

3,363,224

Total liabilities and equity

5,582,519

Consolidated Statement of Profit or Loss
(April 1, 2022 to March 31, 2023)(Millions of yen)

Revenue

5,003,694

Cost of sales

3,596,781

Selling, general and administrative expenses

1,147,981

Other profit (loss)

3,420

Operating profit

262,352

Financial income

12,302Financial expenses

4,296

Share of profit of investments accounted for using the equity
method21,821

Profit before income taxes

292,179

Income taxes

67,235

Net profit

224,944

Net profit attributable to:
Mitsubishi Electric Corp. stockholders

213,908

Non-controlling interests

11,03645

[Reference]

Consolidated Statement of Cash Flows(April 1, 2022 to March 31, 2023)(Millions of yen)

Cash flows from operating activities

166,711

Cash flows from investing activities(148,533)

Free cash flow

18,178Cash flows from financing activities(119,568)

Effect of exchange rate changes on cash and cash

20,081equivalents(81,309)

Net increase (decrease) in cash and cash equivalents

46

Financial Statements
Balance Sheet(March 31, 2023)(Millions of yen)
AssetsCurrent assets:

Liabilities
1,833,664

Cash and cash equivalents
Notes receivable

227,158
7,178

Current liabilities:

1,439,218

Electronically recorded obligations –operating

114,135

Trade accounts receivable

749,237

Trade accounts payable

360,777

Contract assets

225,148

Short-term loans payable532,145

Finished goods

108,887

Lease obligation

Raw materials

69,035

Other accounts payable

108,203

Work in process

239,424

Accrued expenses

106,273

Advance payments

25,878

Income taxes payable

5,301

Other

181,828

Advances received

125,215

Reserve for product warranties

38,145

Allowance for doubtful accounts

(112)

2,190

Reserve for loss on construction
Noncurrent assets:
Property, plant and equipment

1,328,099

contracts

386,171

Other

23,594

Buildings, net

202,656

Structures, net

10,454Long-term loans payable

Machinery and equipment, net

72,424

Lease obligations

Vehicles, net

Noncurrent liabilities:

150,181
141,730
3,901

278

Reserve for loss on investments inTools, furniture and fixtures, net

20,729foreign subsidiaries and affiliatesLand

41,192

Reserve for directors’ retirement benefits

Lease assets, net

2,672

Reserve for competition-law-related

Construction in progress

35,762

expenses

Intangible fixed assets

39,049Software26,555

Other

12,49323,238

293
287
375

Asset retirement obligations

386

Other

3,207
Total liabilities

1,589,400
Net assets

Shareholders’ equity:

1,462,545

Investments and other assets

902,878

Common stock

175,820

Investment in securities

236,163

Capital surplus

181,321

Investment in subsidiaries andaffiliates

453,073

Legal capital surplus

181,140

Other capital surplus

181

Long-term loans receivable

6,147

Long-term prepaid expenses

6,201

Legal retained earnings

43,955

Deferred tax assets

39,559Other retained earnings

1,114,163

Other

162,498

Allowance for doubtful accounts(764)

Retained earnings

Reserve for reduction entry
General reserve
Retained earnings brought forward
Treasury stock
Valuation and translations adjustments:
Unrealized gains (losses) on securities
Deferred gains (losses) on hedges

Total assets

3,161,763

47

1,158,118

9,819
300,000
804,343(52,715)
109,818
109,849(31)

Total net assets

1,572,363

Total liabilities and net assets

3,161,763

Statement of Income(April 1, 2022 to March 31, 2023)(Millions of yen)

Net sales

2,712,165

Cost of sales

2,124,908
587,256

Gross profit

516,890

Selling, general and administrative expenses
Operating income

70,366

Non-operating income
Interest and dividends

108,411

Other

16,223

124,634

Non-operating expenses
Interest

2,810

Other

28,817

Ordinary income

31,628163,372

Extraordinary income
Gain on sale of non-current assets

22,463

22,46322,39522,395Extraordinary loss
Loss on impairment
Income before income taxes

163,440

Income taxes-current

18,225

Income taxes-deferred(1,079)Net income

146,29348

Independent Auditor’s Report
May 9, 2023
Kei Uruma
President and CEO
Mitsubishi Electric Corporation
KPMG AZSA LLC
Tokyo Office, Japan
Kensuke Sodekawa
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Naoki Matsumoto
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Yukihiko Ishiguro
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
OpinionWe have audited the consolidated financial statements, which comprise the consolidated statement of financial position, theconsolidated statement of profit or loss, the consolidated statement of changes in equity and the related notes of Mitsubishi
Electric Corporation (“the Company”) and its consolidated subsidiaries (collectively referred to as “the Group”), as at March
31, 2023 and for the year from April 1, 2022 to March 31, 2023 in accordance with Article 444-4 of the Companies Act.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position and the results of operations of the Group for the period, for which the consolidated financial statements
were prepared, in accordance with the second sentence of Article 120-1 of the Ordinance of Companies Accounting thatprescribes some omissions of disclosure items required under International Financial Reporting Standards.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of ourreport. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of theconsolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.

Other Information
The other information comprises the business report and its supplementary schedules. Management is responsible for the
preparation and presentation of the other information. The audit committee is responsible for overseeing the executive officers
and the directors’ performance of their duties with regard to the design, implementation and maintenance of the reporting49

process for the other information.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.

Responsibilities of Management and the Audit committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordancewith the second sentence of Article 120-1 of the Ordinance of Companies Accounting that prescribes some omissions of
disclosure items required under International Financial Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as agoing concern, disclosing, as applicable, matters related to going concern in accordance with the second sentence of Article
120-1 of the Ordinance of Companies Accounting that prescribes some omissions of disclosure items required underInternational Financial Reporting Standards.
The audit committee is responsible for overseeing the executive officers and the directors’ performance of their duties withregard to the design, implementation and maintenance of the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards
generally accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Group’s
internal control.
50Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going
concern.



Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance with thesecond sentence of Article 120-1 of the Ordinance of Companies Accounting that prescribes some omissions of
disclosure items required under International Financial Reporting Standards, the overall presentation, structure andcontent of the consolidated financial statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the audit committee regarding, among other matters, the planned scope and timing of the audit,
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with it all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company and its subsidiaries which arerequired to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

Notes to the Reader of Independent Auditor’s Report:
The Independent Auditor’s Report herein is the English translation of the Independent Auditor’s Report as required by theCompanies Act for the conveniences of the reader.

51

Independent Auditor’s Report
May 9, 2023
Kei Uruma
President and CEO
Mitsubishi Electric Corporation
KPMG AZSA LLC
Tokyo Office, Japan
Kensuke Sodekawa
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Naoki Matsumoto
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Yukihiko Ishiguro
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant

OpinionWe have audited the financial statements, which comprise the balance sheet, the statement of income, the statement ofchanges in net assets and the related notes, and the supplementary schedules (“the financial statements and others”) of
Mitsubishi Electric Corporation (“the Company”) as at March 31, 2023 and for the year from April 1, 2022 to March 31, 2023
in accordance with Article 436-2-1 of the Companies Act.
In our opinion, the financial statements and others referred to above present fairly, in all material respects, the financial position
and the results of operations of the Company for the period, for which the financial statements and others were prepared, in
accordance with accounting principles generally accepted in Japan.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements and Others section of our report.
We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information
The other information comprises the business report and its supplementary schedules . Management is responsible for the
preparation and presentation of the other information. The audit committee is responsible for overseeing the executive officers
52and the directors’ performance of their duties with regard to the design, implementation and maintenance of the reporting
process for the other information.
Our opinion on the financial statements and others does not cover the other information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the financial statements and others, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements and others or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.

Responsibilities of Management and the Audit committee for the Financial Statements and Others
Management is responsible for the preparation and fair presentation of the financial statements and others in accordance withaccounting principles generally accepted in Japan, and for such internal control as management determines is necessary toenable the preparation of financial statements and the supplementary schedules that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements and others, management is responsible for assessing the Company’s ability to continue asa going concern, disclosing, as applicable, matters related to going concern in accordance with accounting principles generally
accepted in Japan.
The audit committee is responsible for overseeing the executive officers and the directors’ performance of their duties withregard to the design, implementation and maintenance of the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements and Others
Our objectives are to obtain reasonable assurance about whether the financial statements and others as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards
generally accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements and the supplementary schedules.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements and others, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Company’s
internal control.

53Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements and others or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as agoing concern.



Evaluate whether the presentation and disclosures in the financial statements and others are in accordance withaccounting standards generally accepted in Japan, the overall presentation, structure and content of the financial
statements and others, including the disclosures, and whether the financial statements and others represent the underlying
transactions and events in a manner that achieves fair presentation.

We communicate with the audit committee regarding, among other matters, the planned scope and timing of the audit,
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with it all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which are required to be disclosed
pursuant to the provisions of the Certified Public Accountants Act of Japan.
Notes to the Reader of Independent Auditor’s Report:
This is an English translation of the Independent Auditor’s Report as required by the Companies Act of Japan for theconveniences of the reader.

54

Audit Committee Report
The Audit Committee has conducted audits of the Directors and Executive Officers of the Company with regard to theirperformance of duties during the 152nd fiscal period (April 1, 2022 to March 31, 2023). A report covering the methodology
and findings of the audit follows.
1. Methodology and Scope of Audit
The Company’s Audit Committee monitored and examined the content of resolutions of the Board of Directors related tomatters set forth in Article 416, Paragraph 1, Item 1, Sections 2 and 5 of the Companies Act, as well as the structure of theCompany’s internal control system as set forth in the aforementioned resolutions. To this end, the Audit Committee received
periodic reports from Directors, Executive Officers and employees regarding the content of the above resolutions, alongwith the constitution and operating effectiveness of the above-referred internal control system. The Audit Committee, where
necessary, sought explanations and voiced opinions on these matters. At the same time, the Audit Committee conducted
audits using the following methods.
(a) In accordance with its established policies and procedures, the Audit Committee attended important meetings, received
reports on business activities from Directors and Executive Officers, sought explanations where necessary, and perused
documents pertaining to important decisions, and also surveyed properly the condition of operations and assets at theCompany’s head office and key operational facilities, in collaboration with the divisions in charge of internal control. Where
necessary, the Audit Committee sought reports on the operations and assets of subsidiaries.
(b) In addition to monitoring and examining the activities of the independent auditor to ensure that it maintains its
independent position and that it conducts its auditing duties properly, the Audit Committee received reports from the
Independent Auditor regarding the status of its activities and sought explanations when necessary. Furthermore, theIndependent Auditor notified the Committee that it was adhering to “Quality Management Standards Regarding Audits”(Business Accounting Council of the Financial Services Agency, October 28, 2005) as it worked to improve its system “toensure that its duties are properly executed,” as stipulated in Article 131 of the “Company Accounting Regulations.” The
Committee sought explanations where necessary.
Based upon the above methods, the Audit Committee carefully examined the Business Report and its supplementaryschedules, the consolidated financial statements (consolidated statement of financial position, consolidated statement of
profit or loss, consolidated statement of changes in equity and notes to consolidated financial statements), the nonconsolidated financial statements (balance sheets, statements of income, statements of changes in shareholders’ equity andnotes to non-consolidated financial statements) and their supplementary schedules for the fiscal year ended March 31, 2023.
2. Audit Results(1) Results of the Audit of the Business Report and Supplementary Schedules(a) The Business Report and Supplementary Schedules present fairly, in conformity with applicable laws and regulations andthe Company’s Articles of Incorporation, the conditions of the Company.
(b) In executing their duties, the Directors and Executive Officers have not made any significant transactions or actions
deemed to be in contradiction of any laws or the Company’s Articles of Incorporation.
(c) The content of the Board of Directors’ resolutions related to internal control systems as set forth in Article 416, Paragraph
1, Item 1, Sections 2 and 5, of the Companies Act is adequate. Moreover, we find no issues of concern with regard to contentsof the Business Report and the performance of Directors and Executive Officers in their duties related to internal control
systems.
As mentioned in the Business Report, the Company seriously takes the full extent of the improper quality control practices
identified to date and the findings and recommendations from the Investigative Committee and Governance Review
Committee and is taking measures to prevent any recurrence in its entire group so that a similar incident never occurs. In
addition, the Company positions three key areas to restore trust (quality assurance, organizational culture, and governance)
as top management priorities and, deepening and developing these priorities, is committed to reforming toward the creationof a new Mitsubishi Electric. The Audit Committee positions responses to the product quality issue of the Company and its
associated companies as an agenda with a higher degree of importance and, including promotion of a number of recurrence
prevention initiatives for work-related and information security issues as recently identified, will continue to closely monitor
their progress.

55

(2) Results of the Audit of Consolidated Financial Statements
The procedures and report of the audit by the Independent Auditor, KPMG AZSA LLC, are adequate.
(3) Results of the Audit of Non-Consolidated Financial Statements and Supplementary Schedules
The procedures and report of the audit by the Independent Auditor, KPMG AZSA LLC, are adequate.

May 12, 2023
The Audit Committee
Mitsubishi Electric Corporation
Hiroshi Obayashi, Committee Chairman
Kazunori Watanabe, Committee Member
Takashi Oyamada, Committee Member
Tadashi Kawagoishi, Committee Member (Standing)
Jun Nagasawa, Committee Member (Standing)Note: Hiroshi Obayashi, Kazunori Watanabe and Takashi Oyamada are Outside Directors as prescribed under Article 2,
Item 15 and Article 400, Paragraph 3 of the Companies Act.

56

Start date of measures for electronic provision: May 30, 2023
To Shareholders

Other Matters Subject to Measures for Electronic Provision for the
152nd Ordinary General Meeting of Shareholders(Matters omitted from written documents delivered)

For Fiscal 2023 (April 1, 2022–March 31, 2023)■Business Report
Summary of Systems Necessary to Ensure the Properness of Operations of theCompany and the Status of the Management ······································ 1■Consolidated Financial Statements
Consolidated Statement of Changes in Equity ····································· 5
Notes to Consolidated Financial Statements ······································· 6■Financial Statements
Statement of Changes in Net Assets ··············································· 12
Notes to Financial Statements ······················································ 14

The abovementioned items are omitted from the written documents (written documents
stating matters subject to measures for electronic provision) delivered to shareholders who
have requested the delivery of such written documents, in accordance with the provisions oflaws and regulations and Article 15 of Mitsubishi Electric’s Articles of Incorporation.

５８

■Business Report
Summary of Systems Necessary to Ensure the Properness of Operations of the Company and the Status of theManagement(1) For the execution of the duties of the Audit Committee, its independence is secured by assigning employees whose job is
exclusively to assist the Audit Committee members. In addition, internal regulations regarding the processing of expenses
and debts incurred in the execution of the duties of the Audit Committee members are established and such expenses anddebts are properly processed.
A system for reporting to the Audit Committee is developed to report information about the Company and its subsidiaries
to the Audit Committee via the divisions in charge of internal control, and an internal whistle-blower system is developedand its details are reported to the Audit Committee members.
Furthermore, the Audit Committee members attend important meetings including Executive Officer meetings, holddiscussions with Executive Officer, etc., and conduct investigations such as interviews with the executives of the Company’s
offices and subsidiaries, and undertake deliberations to determine audit policies, methods, implementation status, and resultsof the audit by regularly receiving reports from the Independent Auditor and Executive Officers in charge of audits.
Item
Matters resolved
Status of management
The matters■Assign employees whose job is■Employees whose job is exclusively to assist theprescribed by theexclusively to assist the Audit
Audit Committee are assigned and are assisting
applicable
Committee.
the Audit Committee.
Ordinance of the■The Senior General Manager of■The Senior General Manager of the Corporate
Ministry of Justice
the Corporate Human Resources
Human Resources Division consults with Audit
as those necessary
Division will consult with Audit
Committee members regarding the evaluation of
for the execution
Committee members regarding theperformance by and relocation of employeesof the duties of theevaluation of performance by andexclusively assisting the Audit Committee.
Audit Committee
relocation of employees■Reporting systems are established based on the
exclusively assisting the Audit
type of information, and information about theCommittee.
Company and its subsidiaries is reported to the■Establish a system for reporting
Audit Committee via the divisions in charge of
information about the Company
internal control.
and its subsidiaries to the Audit■Results of internal audit are reported to the Audit
Committee via the divisions in
Committee on a regular basis from the internal
charge of internal control.
auditors via the Executive Officers in charge of■Provide opportunities to attend
audits.
important meetings, including■An internal whistle-blower system is developed
Executive Officer meetings, toand its details are reported to the Audit
Standing Members of the Audit
Committee members.
Committee.
■Internal regulations and systems to protect■Establish internal regulations andpeople who reported information about thesystems to protect people who
Company and its subsidiaries to the Audit
reported information about theCommittee are established and are thoroughlyCompany and its subsidiaries toinformed in the Group.
the Audit Committee.
■Internal regulations regarding the processing of■Establish internal regulations
expenses and debts incurred in the execution ofregarding the processing of
the duties of the Audit Committee members are
expenses and debts incurred in theestablished, and such expenses and debts are
execution of the duties of theproperly processed.
Audit Committee members.
■The Audit Committee members attend important■Establish the following structures
meetings including Executive Officer meetings,
and systems in relation to otherhold discussions with Executive Officers, etc.,
audits by the Audit Committee:
and conduct investigations such as interviews
1. Conduct investigation of thewith the executives of the Company’s offices andCompany and its subsidiaries.
subsidiaries.
2. Undertake deliberations to■The Audit Committee undertakes deliberations
determine audit policies,
to determine audit policies, methods,
methods, implementation status
implementation status and results of the audit by
and results of the audit byregularly receiving reports from the Independent
regularly convening debriefing
Auditor and Executive Officers in charge ofsessions between theaudits and exchanging opinions.
Independent Auditor andExecutive Officers in charge ofaudits.
3. Hold discussions between the
Audit Committee members andExecutive Officers, etc. (theexecution divisions) for ensuring
audit effectiveness of the Audit
Committee.

1(2) Internal regulations and systems to ensure the properness of operations within the Mitsubishi Electric Group are established.
Executive Officers take responsibility for constructing such systems within the areas over which they are appointed. Importantmatters are deliberated by convening Executive Officer meetings.
Executive Officers regularly monitor the status of management of the systems. The divisions in charge of internal control
monitor the status of design and management of internal control system and regulations. Also, an internal whistle-blower
system is developed and its details are reported to the Audit Committee members.
Furthermore, the status of management of the system is audited by internal auditors, and the audit results are reported
regularly to the Audit Committee via Executive Officers in charge of audit.
ItemThe
developmentof systems
necessary toensure that theexecution ofduties by

Matters resolved■Establish internal regulations
ensuring that the Executive
Officers’ performance andexecution of duties is inaccordance with laws andregulations and the Articles
of Incorporation. Internal
auditors shall monitor the
status of management.
■Establish internal regulations
related to compliance anddevelop a system necessary
for promoting compliance.

Executive
Officers
complies withlaws andregulations andthe Articles ofIncorporation
Other systems
prescribed by
the applicable
Ordinance ofthe Ministry ofJustice assystems
necessary toensure theproperness ofoperations of
the Company,
and of thecorporategroup formedby theCompany andits subsidiaries■Establish internal regulations
related to the record keeping
and information management
regarding Executive Officers’
performance and executionof duties. Internal auditors
shall monitor the status ofmanagement.
■Executive officers shall takeresponsibility forconstructing risk
management systems related
to possible losses within theareas over which they areappointed. Important mattersshall be deliberated at
Executive Officer meetings.
Internal auditors shallmonitor the status ofmanagement.
In addition, establish internal
regulations related to theemergency response divisionand other functions,preparing for emergency
situations which may
seriously affect managementof the entire company.
■Executive officers shall takeresponsibility for ensuring
management efficiency
within the areas over which
they are appointed.
In addition, an environment
where each Executive Officer
can share and discuss issues

Status of management■Internal regulations ensuring
Executive Officers takethat the Executive Officers’
responsibility for
performance and execution
constructing systems toof duties is in accordance
ensure the properness ofwith laws and regulations and operations of the Groupthe Articles ofwithin the areas over which
Incorporations arethey are appointed, andestablished. Their duties are
regularly monitor the status
executed in accordance withof management of thethese internal regulations.
systems.
■Various compliance activities
The divisions in charge
are conducted in accordance of internal control monitor
with the established internal
the status of design andregulations related to
management of internal
compliance.
control system and■Compliance training isregulations. Also an internal
implemented for all
whistle-blower system is
Executive Officers on adeveloped and its details are
regular basis. Points ofreported to the Audit
concern for Executive
Committee members.
Officers in light of legal
The status ofreform and social trends are management of the systems
provided.
is audited by internal
auditors, and the audit
results are reported
regularly to the Audit■Internal regulations related to Committee via Executive
Officers in charge of audit.
the record keeping andinformation management
regarding Executive Officers’
performance and executionof duties are established.
Record keeping andinformation management are
carried out in an appropriatemanner.
■Executive Officers takeresponsibility forconstructing risk
management systems related
to possible losses within theareas over which they areappointed. Importantmatters are deliberated byconvening Executive Officer
meetings.
■Preparing for emergency
situations which may
seriously affect managementof the entire company,
internal regulations related tothe emergency response
division and other functions
are established, discussed,and handled.
■Executive officers takeresponsibility for ensuring
management efficiency
within the areas over which
they are appointed.
Important matters aredeliberated by convening

2

Item

Matters resolved
across the entire company
shall be established.
Important matters shall bedeliberated at Executive
Officer meetings. Internal
auditors shall monitor the
status of management.
■Establish the following
systems ensuring that
employees’ performance andexecution of duties is inaccordance with laws and the
Articles of Incorporation.
Internal auditors shallmonitor the status ofmanagement.
1. Establish internal
regulations and action
guidelines regarding ethics
and compliance.
2. Implement an internal
whistle-blower system.

Status of management
Executive Officer meetings.
In addition, issues across theentire company are sharedand discussed among
Executive Officers.
■Internal regulations andaction guidelines regarding
ethics and compliance areestablished, based on which
the performance andexecution of duties is carriedout.
■Various types of compliancerelated trainings are
implemented for employees
on a regular basis.

3

Item

Matters resolved■The following systems shallbe established in order toensure the properness ofoperations within the Group.
1. Executive officers shallmanage the subsidiaries
within the areas over which
they are appointed.
2. Establish action guidelines
shared throughout theGroup regarding ethics andcompliance.
3. Create a specializedorganization for integrated
management of the Group
companies.
4. Build systems for reporting
matters relating to theperformance and executionof duties of the Group
companies, managing risksof possible losses, andensuring the efficiency of
performance and executionof duties, and establish
management standards.
Important matters shall bedeliberated and reported at
Executive Officer meetings.
5. Conduct regular audits ofsubsidiaries by internal
auditors.

Status of management■Executive Officers takeresponsibility for managing
the subsidiaries within theareas over which they areappointed.
■Action guidelines sharedthroughout the Group
regarding ethics andcompliance are establishedand thoroughly informed in
the Group.
■A specialized organization forthe management of associatedcompanies is created for the
integrated management of theGroup companies.
■In order to ensure theproperness of operations
within the Group,
management standards for
the Group companies are
established. Importantmatters of the Group
companies are deliberated
and reported by convening
Executive Officer meetings.

4

■Consolidated Financial Statements

Consolidated Statement of Changes in Equity(April 1, 2022 to March 31, 2023)(Millions of yen)
Mitsubishi Electric Corp. stockholders’ equity
Accumulated

Non-Treasury
Items

CommonCapitalRetainedotherstock, atstocksurplusearnings

Total

controllingcomprehensive

Total equity

interests

cost
income (loss)

Balance at beginning of period

175,820

202,695

2,464,966

184,528

213,908

Net profit
Other comprehensive income(loss), net of tax

134,156

213,908

134,156

Reclassification to retained
earnings

41,786(41,786)

Dividends(84,524)Comprehensive income––

Disposal of treasury stock(928)

Transactions with noncontrolling interests andothers

1,121

175,820

202,8882,636,136

5–

2,975,941

121,456

3,097,397

213,908

11,036

224,944

134,156

4,485

138,641

348,064

15,521

363,585–(84,524)

Purchase of treasury stock

Balance at end of period(52,068)

276,898–(10,382)(94,906)(1,575)(1,575)(1,575)928

0

0(52,715)

1,121(2,398)(1,277)3,239,027

124,197

3,363,224

Notes to Consolidated Financial Statements:
1. Basis of Preparation of Consolidated Financial Statements
The consolidated financial statements of Mitsubishi Electric Corporation (the “Company”) are prepared inaccordance with the International Financial Reporting Standards (“IFRS”), pursuant to the Article 120, Paragraph
1 of the Ordinance of Company’s Accounting. However, based on the second sentence of the same paragraph,some disclosure items required under IFRS are omitted.
2. Scope of Consolidation and Application of the Equity Method
Number of consolidated subsidiaries: 209
Number of associates and joint ventures accounted for using the equity method: 40
3. Significant Accounting Policies(1) Valuation of Financial Instruments
(a)

(b)

(c)

Non-derivative Financial Assets(i)Financial assets measured at amortized cost
When financial assets are held within a business model whose objective is to hold assets in order
to collect contractual cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amountoutstanding, such financial assets are classified as financial assets measured at amortized cost.
Financial assets measured at amortized cost are initially recognized at fair value, and subsequently
measured at the initial recognition amount plus or minus accumulated amortization using theeffective interest method, adjusting allowance for credit losses.

(ii)

Financial assets measured at fair value
Equity instruments which are held primarily to maintain and strengthen business relationships
are designated as financial assets measured at fair value through other comprehensive income, andall other financial instruments are classified as financial assets measured at fair value through profit
or loss.
- Financial assets measured at fair value through other comprehensive income are initiallymeasured at fair value. Changes in fair value after initial recognition are recognized in othercomprehensive income.
- Financial assets measured at fair value through profit or loss are initially measured at fair value.
Changes in fair value after initial recognition are recognized in profit or loss.

Non-derivative Financial Liabilities(i)Financial liabilities measured at fair value through profit or loss
Liabilities related to contingent considerations are classified into financial liabilities measured atfair value through profit or loss. Financial liabilities measured at fair value through profit or loss are
initially recognized at fair value. Changes in fair value after initial recognition are recognized in profit
or loss.

(ii)

Financial liabilities measured at amortized cost
Financial liabilities other than financial liabilities measured at fair value through profit or loss areclassified into financial liabilities measured at amortized cost. Financial liabilities measured atamortized cost are initially recognized at fair value, and subsequently measured at the initialrecognition amount plus or minus accumulated amortization using the effective interest method.

Derivatives
Derivatives are initially measured at fair value at the time that contracts are entered into. They aresubsequently remeasured at fair value and resulting gains or losses are recognized in profit or loss.

However, the effective part of cash flow hedges is recognized in other comprehensive income.
(2) Valuation of Inventories
Inventories are measured at the lower of cost or net realizable value. Net realizable value is the estimatedselling price in the ordinary course of business less the estimated costs of completion and the estimated costs
necessary to make the sale. In determining the cost, work-in-process for build-to-ordered products arerecorded under the specific identification method and make-to-stock products are recorded under the average
cost method. Raw material and finished goods inventories are generally recorded using the average-cost
method.

6

(3) Valuation and Depreciation of Property, Plant and Equipment(a)Property, Plant and Equipment
The cost model is used to measure property, plant and equipment which are presented at cost lessany accumulated depreciation and any accumulated impairment losses. Depreciation of property, plantand equipment is generally calculated by the diminishing balance method over the estimated useful lifeof the assets, except for certain assets which are depreciated by the straight-line method.

(b)

Right-of-use Assets
Right-of-use assets are recognized for all leases other than leases that have a lease term of 12 months
or less and leases for which the underlying asset is of low value.
Right-of-use assets are initially measured at cost, which mainly comprises the amount of the initial
measurement of lease liabilities. Lease liabilities are initially measured at the present value of theremaining lease payments at the commencement date that are discounted mainly using the lessee’s
incremental borrowing rate. After the initial recognition, right-of-use assets are measured applying a
cost model, and presented at cost less any accumulated depreciation and any accumulated impairment
losses.
Right-of-use assets are depreciated over the shorter of the useful life or the lease term in the same

way as the depreciation of property, plant and equipment owned by the Group.
(4) Impairment of Non-financial Assets
The Company and its consolidated subsidiaries determine whether there is an indication of impairment for
non-financial assets, excluding inventories and deferred tax assets. If there is an indication of impairment,these non-financial assets are tested for impairment by estimating the recoverable amount of the asset or cash
generating unit. Goodwill and intangible assets with an indefinite useful life are tested for impairment at least
annually at the same time every year, irrespective of whether there was any indication of impairment. An
impairment loss is recognized in profit or loss if the carrying amount of an asset or a cash generating unit
exceeds its recoverable amount.
(5) Provisions
Provisions are recognized when the Company and its consolidated subsidiaries have a present legal orconstructive obligation as a result of a past event, and it is probable that an outflow of economic resources
will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If
the effect of the time value of money is material, provisions are recognized at the amounts of estimated future
cash flows discounted to their present value using a pre-tax discount rate that reflects the time value of money
and the risks specific to the liabilities.
(6) Accounting Treatment of Post-employment Benefits
The present value of the defined benefit obligations and the related current service cost and past service
cost are determined using the projected unit credit method.
Discount rates are determined by reference to the market yields of high quality corporate bonds, at the endof the consolidated fiscal year.
Net defined benefit liability or asset is determined at the present value of the defined benefit obligation lessthe fair value of the plan assets.
The amount of change arising from the remeasurement of defined benefit plans is fully recognized in othercomprehensive income in the periods in which it arises and immediately reclassified to retained earnings. Past
service costs are recognized in profit or loss for the period in which they arise.
(7) Revenues
The Company and its consolidated subsidiaries recognize revenue in an amount that reflects theconsideration to which they expect to be entitled by transferring a good or service to a customer using thefive-step approach below, except for income from interest and dividends as defined in IFRS 9.
Step1: Identify the contract(s) with a customer.
Step2: Identify the performance obligations in the contract.
Step3: Determine the transaction price.

7

Step4: Allocate the transaction price to the separate performance obligations in the contract.
Step5: Recognize revenue when (or as) the entity satisfies a performance obligation.
For mass-produced goods such as home appliances, semiconductors and industrial products, revenue isrecognized when the customer accepts the product. For products requiring acceptance inspection of delivered
goods, revenue is only recognized when the customer accepts the product, the Company and its consolidated
subsidiaries verify that the product achieves predefined performance and there remain only verification of
items that are not significant for the customer’s final operation check. Consideration for transactions isreceived primarily within one year after the performance obligation has been satisfied.
Revenue from maintenance agreements is recognized over the contract term as the maintenance is provided.
Revenue from specific construction contracts meeting certain criteria is recognized according to theprogress of the construction if progress can be reasonably measured. Revenue is recognized only to the extent
of the cost incurred if progress cannot be reasonably measured. The progress of construction is measured bycomparing the cost incurred through the current year to the estimated total cost. Estimates and underlying
assumptions for the aggregate amount of estimated cost are reviewed on an ongoing basis since there is apossibility that the cost incurred may change due to the progress of construction.
Revenue is recognized in an amount that reflects the consideration to which the Company and its
consolidated subsidiaries expect to be entitled by transferring the good or service. For contracts which consistof any combination of products, equipment, installation and maintenance, each element is treated as a separate
performance obligation and revenue is allocated to each element in proportion to its stand-alone selling pricewhen the good or service provided has a stand-alone value as a separate product.
For contracts which include subsequent changes in consideration such as rebates and discounts, thetransaction price is determined by taking into account the variable consideration in a way that the actual value
does not significantly diverge from the estimate.
For contracts in which the Company and its consolidated subsidiaries do not have discretion in establishing
the transaction price, do not have inventory risk, or another party is primarily responsible for fulfilling the4.

contract, revenue is recognized on a net basis.
Notes to Accounting Estimates
The Group used accounting estimates for the following items to recognize their amounts in the consolidated
financial statements for this fiscal year. These accounting estimates may significantly affect the consolidated
financial statements for the next fiscal year.
(1) Estimated Total Cost of Contracts in which Performance Obligations are satisfied Over TimeThe Group recognizes revenue for specific construction contracts meeting certain criteria in the
Infrastructure segment, Life segment and Business Platform segment according to the progress of theconstruction. Revenue* in the Infrastructure segment, Life segment and Business Platform segment in thisfiscal year are ¥973,139 million, ¥1,947,157 million and ¥429,320 million respectively. A part of theserevenues are recognized according to the progress of the construction. The progress of construction ismeasured by comparing the cost incurred through this fiscal year to the estimated total cost. The estimatedtotal cost is calculated for each contract based on various information such as the contract details of therelevant construction contract, required specifications, the presence or absence of new technologicaldevelopment elements, and historical incurred cost results for similar contracts.
The estimated total cost may be fluctuated due to changes in the environment. Deviations between

8estimates and actual results may significantly affect the amount of revenue in the consolidated financial
statements for the next fiscal year.
Note: Revenue of each segment includes internal revenue between segments (transfer).
(2) Recognition and Measurement of Provisions
The Group records the expected amount of future losses on construction contracts in the Infrastructure
segment, Life segment and Business Platform segment as a provision for loss on construction, if it is probablethat the estimated total cost of such construction will exceed the contract order amount and if the expected
loss amount can be reasonably estimated. The balance of provision for loss on construction as of March 31,
2023 is ¥55,491 million. The estimated total cost is calculated for each contract based on various informationsuch as the contract details of the relevant construction contract, required specifications, the presence orabsence of new technological development elements, and historical incurred cost results for similar contracts.
The Group generally offers warranties on their products against certain manufacturing and other defects
for specific periods of time and/or used conditions of the product. The Group records a provision for productwarranties if it is probable that the future cost will be incurred as of the end of the fiscal year and if the
expected cost can be reasonably estimated. The Group estimates future warranty costs based primarily on thehistorical experience of actual warranty claims as well as current information on repair costs. The balance ofprovision for product warranties as of March 31, 2023 is ¥57,962 million.
The estimated total cost in provision for losses on construction contracts and estimated future warranty
cost in provision for product warranties may be fluctuated due to changes in the environment. Deviations
between estimates and actual results may significantly affect the amount of provision for losses on
construction contracts and provision for product warranties in the consolidated financial statements for the
next fiscal year.
(3) Recoverable Amount of Property, Plant and Equipment, Goodwill and intangible assets
For the impairment test of property, plant and equipment, goodwill, and intangible assets, the recoverable
amount of an asset or cash generating unit is calculated as the higher of its value in use and its fair value lesscosts of disposal. Estimated future cash flows used in the calculation of value in use are discounted to theirpresent value using a pre-tax discount rate reflecting the time value of money and the risks specific to theasset. Impairment losses are recognized in profit or loss if the carrying amount of an asset or a cash-generating
unit exceeds its recoverable amount. Impairment losses of ¥25,012 million are recognized for this fiscal year.
As a result, the balance of property plant and equipment is ¥896,313 million, and the balance of goodwill andintangible assets is ¥190,601 million as of March 31, 2023.
The estimated future cash flows and estimated fair value less costs of disposal may be fluctuated due tochanges in the environment. Deviations between estimates and actual results may significantly affect theamount of impairment losses on property, plant and equipment, goodwill and intangible assets in the
consolidated financial statements for the next fiscal year.
The Group believes that the estimates based on these assumptions are reasonable. However, if any changes
occur in the economic environment and accordingly revisions are required for such estimates, the recognitionof impairment losses may become necessary for the next fiscal year.
(4) Recoverability of Deferred Tax Assets
A deferred tax asset is recognized for deductible temporary differences, unused tax losses carryforwards
and tax credit carryforwards to the extent that is probable that they can be utilized against future taxable profit.

9

In assessing the realizability of deferred tax assets, the Group estimates future taxable income, and considers
whether it is probable that some portion or all of the deferred tax assets will be realized. The Group consider
the scheduled reversal of deferred tax liabilities, projected future taxable profit, and tax planning strategies inmaking this assessment. The balance of deferred tax assets as of March 31, 2023 is ¥154,441 million.
The estimated future taxable profit may be fluctuated due to changes in the environment. Deviations
between estimates and actual results may significantly affect the amount of deferred tax assets in the
consolidated financial statements for the next fiscal year.
(5) Measurement of Defined Benefit Obligation
Defined benefit obligation is calculated based on actuarial assumptions, such as the discount rate, theretirement rate, the lump-sum payment selection rate, and the mortality rate. The period of discount isdetermined based on the period to the date on which future annual benefits are expected to be paid. Discountrates are determined by reference to market yields consistent with the period of discount on high quality
corporate bonds at the end of this fiscal year. The balance of net defined benefit liabilities as of March 31,
2023 is ¥153,821 million.
The actuarial assumptions may be fluctuated due to changes in the environment. Deviations between
assumptions and actual results or changes in assumptions may significantly affect the amount of defined
benefit obligation in the consolidated financial statements for the next fiscal year.
(6) Fair Value of Financial Instruments
The fair value of non-marketable equity instruments is calculated based on comprehensively taking into
consideration quantitative information on the net assets and other financial information of the investee andforecasts of its future cash flows. The balance of non-marketable equity instruments as of March 31, 2023 is¥80,988 million.
The estimated fair value may be fluctuated due to changes in the environment. Changes in assumptions
such as investee’s performance and future cash flows estimation may affect the amount of othercomprehensive income for the next fiscal year.
5. Notes to Consolidated Statement of Financial Position(1) Allowance for credit losses directly deducted from assets: ¥15,422 million(2) Accumulated depreciation of property, plant and equipment: ¥2,686,952 million
The figure for accumulated depreciation of property, plant and equipment includes accumulated impairment
losses.
(3) Accumulated Other Comprehensive Income (Loss)
Changes in fair value of financial assets measured at fair value through other comprehensive income:¥113,579 million
Exchange differences on translating foreign operations: ¥163,249 million
Net changes in the fair value of cash flow hedges: ¥70 million(4) Guarantee liabilities: ¥5,014 million
6. Notes to Consolidated Statement of Changes in Equity(1) Class and Total Number of Shares Issued and Outstanding and Treasury Stock as of March 31, 2023
Shares issued and outstanding (common stock): 2,147,201,551 shares
Treasury stock (common stock): 35,681,952 shares
Note: Treasury stock includes 1,583,011 shares of the Company’s stock held by the Board Incentive Plan
Trust.
(2) Items Concerning Dividends

10Dividends paid: ¥84,524 million
7. Notes to Financial Instruments(1) Items Concerning the Status of Financial Instruments
The Company and its consolidated subsidiaries undertake fund management primarily through short-term
investments that have a maturity of three months or less from the date of acquisition and are readily convertible
to cash and which are subject to an insignificant risk of changes in value. Such funds are recognized in cash andcash equivalents. Financing is conducted through borrowings from financial institutions and by issuing bonds.
Risks associated with customer credit risk-related trade receivables and contract assets are managed by first
conducting screening through external agencies, then establishing customer credit limits and regularly
monitoring customers’ financial condition.
Other financial assets are mainly equity instruments, which are managed by regularly monitoring their fairvalue. The Company and certain consolidated subsidiaries also make use of derivative instruments to avoid
market risks from changes in foreign currencies and interest rates, and do not hold or issue financial instruments
for trading purposes.
(2) Items Concerning the Fair Value of Financial Instruments
The Group classifies fair value measurements from level 1 to level 3 according to the observability of the
inputs used in measurement:
Level 1: Quoted prices for identical assets or liabilities in active markets
Level 2: Fair value calculated directly or indirectly using observable prices other than those in level 1
Level 3: Fair value calculated using valuation techniques including unobservable inputs
A determination is made at the end of each fiscal year as to whether there are financial instruments for whichtransfers between levels were carried out. There were no financial instruments with significant transfers between
levels in this fiscal year.
For financial instruments classified as level 3, no significant increase or decrease in the fair value is expected
if unobservable inputs are changed to reasonably possible alternative assumptions.
(i)Financial instruments measured at amortized cost
Methods of measurement of fair value, carrying amount and fair value of financial instruments
measured at amortized cost are as follows:(Borrowings (including long-term borrowings to be repaid within 1 year))
Fair values of borrowings are calculated using the present value of future cash flows discounted
by the expected interest rate for similar new contracts and are classified as level 2 because fair value
is calculated using observable market data.
(Millions of yen)
Carrying amount

Fair value

Borrowings(including long-term borrowings to be

164,773

160,437

repaid within 1 year)
Note: The fair value of financial assets and financial liabilities measured at amortized cost otherthan the above approximated the carrying amounts.
(ii)

Financial instruments measured at fair value on a recurring basis
The method of measurement of fair value and fair value of financial instruments measured at fairvalue on a recurring basis are as follows:(Equity instruments and debt instruments)
The fair value of marketable equity instruments is calculated based on the market price at theend of the fiscal year and are classified as level 1 because fair value is calculated using the market
value of an identical asset in an active market. The fair value of non-marketable equity instruments

11and debt instruments is calculated based on comprehensively taking into consideration quantitative
information on the net assets and other financial information of the investee and forecasts of its
future cash flows, and are classified as level 3 because fair value is calculated based on valuation
techniques using unobservable indicators.
(Derivative assets and liabilities)
Fair values of derivatives are calculated based on market interest rates and market rates offoreign exchange banks as financial assets or financial liabilities measured at fair value throughprofit or loss and are classified as level 2 because fair value is calculated using observable market
data.
(Contingent considerations )The fair value of liabilities related to contingent considerations is calculated using the present
value taking into account the probability of possible payment to contract counterparties andclassified as level 3 because fair value is calculated based on valuation techniques using unobservableindicators.

Level 1

(Millions of yen)
Level 3
Total

Level 2Equity instruments
Debt instruments
Derivative assets

225,587
–
–

–
–
2,352

80,400588－

305,987588
2,352

Total assets

225,587

2,352

80,988308,927

Derivative liabilities

–

1,508

－

1,508

Contingent considerations

–

–

1,717

1,717

–

1,508

1,717

3,225

Total liabilities
8. Notes to Per Share Information

Equity attributable to Mitsubishi Electric Corp. stockholders per share: ¥1,533.98
Basic earnings per share for net profit attributable to Mitsubishi Electric Corp. stockholders: ¥101.30
Diluted earnings per share for net profit attributable to Mitsubishi Electric Corp. stockholders: ¥101.30
9. Notes to Significant Subsequent Events
The Company’s Board of Directors resolved on April 28, 2023 to repurchase shares of the Company’s stock pursuant
to the provisions of Article 459, paragraph 1 of the Companies Act, as well as Article 31 of the Company’s Articles
of Incorporation.
(1) Reason for Repurchase of Company Shares
Based on the financial policies of Mitsubishi Electric’s medium-term management plan, the Company will
repurchase its own stock to primarily enhance shareholder returns, strengthen capital efficiency.
(2) Details of Repurchase(i)Type of shares to repurchase:Common stock(ii)

Number of shares to repurchase:40,000,000 shares (maximum unit)(iii) Aggregate value of repurchase:¥50,000 million (maximum limit)(iv) Repurchase period: May 1, 2023-March 29, 2024(v)

Repurchase method: Market trades on Tokyo Stock Exchange

1210. Notes to Revenue
The Group’s business consists of 5 reportable segments: Infrastructure, Industry and Mobility, Life, Business
Platform and Others. Revenue is presented by these categories since the Company’s management periodically uses
them for decision of business resources allocation and evaluation of business operations.
Revenue is disaggregated by region according to the customer’s location. The relationship between thesedisaggregated revenue and segment revenue are as follows.
In this fiscal year, in line with a change of the management structure as of April 1, 2022, reportable segments
were changed to the 5 segments as above from the previous 6 segments: Energy and Electric Systems, Industrial
Automation Systems, Information and Communication Systems, Electronic Devices, Home Appliances and Others.
(Millions of yen)Overseas
Japan

North
America

Infrastructure

Asia

EuropeConsolidated
Other

Subtotal

total

766,901

114,866

52,01815,46011,670

194,014960,915

631,446

236,467

589,218

172,539

13,775

1,011,999

1,643,445

Life780,021

256,470

461,332

371,696

58,482

1,147,980

1,928,001

Business Platform

145,487

16,113101,039

46,941

449

164,542

310,029

Others143,175

1,646

15,296

1,176

11

18,129161,304

Consolidated total

2,467,030

625,562

1,218,903

607,81284,3872,536,664

5,003,694

Industry andMobility

11. Other Notes
Other profit (loss)
Other profit (loss) in this fiscal year includes impairment losses of ¥25,012 million on property, plant andequipment, intangible assets and others as well as gain on sale of land of ¥24,601 million.
The impairment losses were mainly due to a prolonged, unfavorable procurement environment caused mainly bysoaring material and logistics costs at a certain domestic manufacturing facility in the automotive equipment businesswithin the Industry and Mobility segment. The Company recorded impairment losses of ¥17,956 million forproperty, plant and equipment related to business assets such as machinery and equipment, and ¥717 million for
intangible assets and others. The recoverable amount of ¥25,910 million is mainly measured based on the fair valueless costs of disposal. These measurements are based on real estate appraisal amount. The fair value hierarchy is level3.

13

■Financial Statements

Statement of Changes in Net Assets(April 1, 2022 to March 31, 2023)(Millions of yen)

Shareholders’ equity
Capital surplus
Commonstock

Retained earnings
Other retained earnings

Legal
capitalsurplus

Othercapitalsurplus

Total capitalsurplusLegalretainedearnings

181,32143,955

Total
retainedearnings

Treasurystock

Total shareholders’equity(52,068)

1,401,422

Reserve for
reduction
entry

Generalreserve

Retainedearnings
brought
forward

9,583

300,000

742,810

1,096,349

(236)

–

–

Dividends from surplus(84,524)(84,524)(84,524)

Net income

146,293

146,293

146,293

Balance at beginning of period

175,820

181,140

181

Changes of items during theperiodProvision of reserve for
reduction entry

236

Purchase of treasury stock
Disposal of treasury stock
Net change of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of period

(0)

(0)

(1,575)(1,575)

928

928
–

–

–

(0)

(0)

–

236

–

61,532

61,769(647)

61,122

175,820

181,140

181

181,32143,9559,819

300,000

804,343

1,158,118(52,715)

1,462,545

14

Valuation and translation adjustments

Balance at beginning of period

Unrealized
gains(losses) on
securities

Deferred
gains orlosses onhedgesTotal valuationand translation
adjustments

89,342(584)

88,757

Total net assets

1,490,180

Changes of items during theperiodProvision of reserve for
reduction entry
Dividends from surplus(84,524)

Net income

146,293

Purchase of treasury stock(1,575)

Disposal of treasury stock928

Net change of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at end of period

20,507552

21,06021,06020,507552

21,06082,182

109,849(31)

109,818

1,572,363

15

Notes to Financial Statements:
1. Valuation of Inventories
Raw materials and finished goods are generally recorded using the average-cost method. In work-inprocess, Mitsubishi Electric Corporation (the “Company”) records the ordered products at the acquisition
cost and the regular purchased products at the average production cost. The inventories on the balance
sheet are measured by reflecting write-downs resulting from decreased profitability.
2. Valuation of Short-Term Investment and Investment Securities(1) Investment in subsidiaries and affiliates: Cost method using the moving-average method(2) Other securities:
Marketable securities: Fair value at the fiscal year-end. (Unrealized gains and losses, net of therelated tax effect are directly recorded in shareholders' equity. The cost is determined on the movingaverage method.)
Non-marketable securities: Cost method using the moving-average method
3. Depreciation of property, plant and equipment is calculated by the declining-balance method. However,depreciation of buildings (excluding attached facilities) acquired since April 1, 1998, and on facilities
attached to buildings and structures acquired since April 1, 2016 are calculated by the straight-line method.
4. Basis for Calculating Provisions(1) Allowance for doubtful accounts: To prepare for possible losses on uncollectible notes and accounts
receivable. The Company records the estimated uncollectible amounts based on credit loss history for
general accounts receivable, and the collectability for each individual account for specific doubtfulreceivables.
(2) Provision for product warranties: To prepare for expenses related to the servicing of products, theCompany records an estimated amount based upon historical experience.
(3) Provision for losses on construction contracts: To prepare for possible losses on the estimated amountof uncompleted construction contracts during the fiscal year, the Company records provisions for
aforementioned estimated amount.
(4) Retirement and severance benefits: To prepare for employees’ retirement benefits, the Company
records an amount calculated based upon the estimated retirement and severance benefit obligations
and the fair value of plan assets at the end of the fiscal year.
Past service costs are amortized as incurred using the straight-line method over the average remaining
years of service of the employees.
Actuarial gains and losses are amortized in the year following the year in which the gains or losses arerecognized using the straight-line method over the average remaining years of service of the employee.
(5) Provision for loss on investments in foreign subsidiaries and affiliates: To prepare for losses related
to overseas investments, the Company records the amount of estimated losses based upon thefinancial conditions of the entities in which it has investments.
(6) Provision for directors’ retirement benefits: To prepare for the payment of retirement benefits todirectors and executive officers, the Company records the estimated amount at fiscal year-end
calculated based upon internal regulations.
(7) Provision for competition-law-related expense: The Company records the estimated contingent losses
related to Competition Laws.
5. Basis for Calculating Revenue and Expenses
The Company recognizes revenue in an amount that reflects the consideration to which they expect
to be entitled by transferring a good or service to a customer using the five-step approach below, except
for income from interest and dividends.
Step1: Identify the contract(s) with a customer.
Step2: Identify the performance obligations in the contract.

16

Step3: Determine the transaction price.
Step4: Allocate the transaction price to the separate performance obligations in the contract.
Step5: Recognize revenue when (or as) the entity satisfies a performance obligation.
For mass-produced goods such as home appliances, semiconductors and industrial products, revenue
is recognized when the customer accepts the product. For products requiring acceptance inspection ofdelivered goods, revenue is only recognized when the customer accepts the product, the Company verifies
that the product achieves predefined performance and there remains only verification of items that are
not significant for the customer’s final operation check. Consideration for transactions is received
primarily within one year after the performance obligation has been satisfied.
Revenue from maintenance agreements is recognized over the contract term as the maintenance isprovided.
Revenue from specific construction contracts meeting certain criteria is recognized according to theprogress of the construction if progress can be reasonably measured. Revenue is recognized only to theextent of the cost incurred if progress cannot be reasonably measured. The progress of construction ismeasured by comparing the cost incurred through the current year to the estimated total cost. Estimatesand underlying assumptions for the aggregate amount of estimated cost are reviewed on an ongoing basis
since there is a possibility that the cost incurred may change due to the progress of construction.
Revenue is recognized in an amount that reflects the consideration to which the Company expects tobe entitled by transferring the good or service. For contracts which consist of any combination of products,
equipment, installation and maintenance, each element is treated as a separate performance obligation andrevenue is allocated to each element in proportion to its stand-alone selling price when the good or service
provided has a stand-alone value as a separate product.
For contracts which include subsequent changes in consideration such as rebates and discounts, thetransaction price is determined by taking into account the variable consideration in a way that the actual
value does not significantly diverge from the estimate.
6. Adoption of Group Tax Sharing System
The Company transitioned from the consolidated taxation system to the group tax sharing system inthis fiscal year. Accordingly, the accounting treatment and disclosure of income taxes, local income taxes,
and tax effect accounting are based on the Practical Solution on the Accounting and Disclosure Under theGroup Tax Sharing System (Practical Solution No. 42, August 12, 2021; hereinafter the “Practical Solution
No. 42”). In addition, based on Paragraph 32 (1) of Practical Solution No. 42, the Company deems that
there is no impact of changes in accounting policies due to the adoption of Practical Solution No. 42.
7. Accounting Estimates
Items and balances including major accounting estimates and assumptions that could have a significant
effect on the amounts in the financial statements of the Company are as follows.
The details of the estimates have been omitted as they are identical to those in the notes to theconsolidated financial statements.

17

(i)

Estimated total cost of contracts in which performance obligations are satisfied over time
The Company has reported net sales of ¥2,712,165 million. A part of this is revenue
recognized according to the progress of the construction pursuant to contract agreements.

(ii)

Provisions
Reserve for loss on construction contracts
Reserve for product warranties¥23,238 million¥38,145 million(iii)

Property, plant and equipment and intangible fixed assets ¥425,221 million(iv)

Deferred tax assets(v)

Investments and other assets - other¥39,559 million

At the end of this fiscal year, plan assets exceeded the retirement and severance benefit
obligations as adjusted for unrecognized actuarial gains and losses. A portion of the ¥162,498
million in investments and other assets - other corresponds to this excess amount.
(vi) Investment in securities and investment in subsidiaries and affiliates
8. Accumulated depreciation of property, plant and equipment: ¥1,687,036 million¥689,237 million

The figure for accumulated depreciation of property, plant and equipment includes accumulated
impairment losses.
9. Guarantee liabilities: ¥3,140 million
Loan guarantee on borrowing of affiliates from financial institutions: ¥1,400 million; Outstandingof transferred accounts receivable with recourse: ¥942 million; Others: ¥798 million
10. Receivables from affiliates:
Short-term: ¥633,181 million
Long-term: ¥8,145 million
Payables to affiliates:
Short-term: ¥659,359 million
Long-term: ¥33,198 million
11. Net sales to affiliates: ¥1,590,943 million
Purchases from affiliates: ¥1,280,610 million
Total transactions with affiliates, excluding operating transactions: ¥12,481 million
12. Shares issued and outstanding at the fiscal year-end (common stock): 2,147,201,551 shares
13. Treasury stock at the fiscal year-end (common stock): 35,681,952 shares
Note: The number of treasury stock includes 1,583,011 shares held through the Board Incentive Plan (BIP)
Trust.
14. Dividends(1) Amount of dividends paid
Resolution
May 25, 2022 resolution

Total cash dividends Dividends per share¥54,940 million¥26.00¥29,583 million¥14.00Record date

Effective date

March 31, 2022

June 2, 2022of the Board of Directors
October 28, 2022 resolutionof the Board of Directors

18

September 30, 2022 December 2, 2022

(2) Dividends with a record date in the current period and the effective date in the next period
Resolution
May 15, 2023 resolutionof the Board of Directors

Total cash dividends Dividends per share¥54,940 million¥26.00Record date

Effective date

March 31, 2023

June 2, 2023

15. Significant components of the deferred tax assets and deferred tax liabilities(1) Deferred tax assets:
Depreciation, amortization, and others: ¥107,413 million(2) Deferred tax liabilities:
Gain on contribution of securities to employee retirement benefit trust and others: ¥(67,854) million(3) Net deferred tax assets: ¥39,559 million
16. Transactions with Related Parties% of voting
rightsRelationship

Details oftransactions

Amount(¥ Millions)

Item

Period-end
balance(¥ Millions)

Direct 100%

As a subsidiary, sells
Mitsubishi Electric
products

Sales of
Mitsubishi
Electric
products*

222,212Tradeaccounts
receivables

112,312

As a subsidiary, sells
Mitsubishi Electric
Direct 73%
Mitsubishi Electric’s
Subsidiary Living Environment
Indirect 27% home electric systems
Systems Corporationand equipment

Sales of
Mitsubishi
Electric
products*

196,816Tradeaccounts
receivables

48,337105,242Tradeaccounts
receivables

43,10180,386Tradeaccounts
receivables

41,778Category

Company name

Mitsubishi Electric
Subsidiary
Europe B.V.

As a subsidiary,
Manufacture and
Mitsubishi Electricpurchases components
sales of
Subsidiary Automotive America, Indirect 100% from Mitsubishi Electric MitsubishiInc.
to manufacture and sellElectric
automotive equipment
products*
As a subsidiary, sells
Mitsubishi Electric
Subsidiary
Indirect 50% Mitsubishi Electric’s air
Trane HVAC US LLC
conditioning equipment

Note:

Sales of
Mitsubishi
Electric
products*

Terms of transactions with subsidiaries, including prices are determined through the negotiationconsidering the market condition.

19

17. Net assets per share: ¥744.66
Net income per share: ¥69.28
18. Gain on sale of non-current assets of ¥22,463 million is gain on sale of land.
19. The impairment losses of ¥22,395 million were mainly due to a prolonged, unfavorable procurement
environment caused mainly by soaring material and logistics costs at a certain domestic manufacturing
facility in the automotive equipment business. The Company recorded impairment losses of ¥17,956
million for property, plant and equipment related to business assets such as machinery and equipment,and ¥717 million for intangible fixed assets and others. The recoverable amount of ¥25,910 million ismainly measured based on the net sales price.
20. Significant subsequent events
The Company’s Board of Directors resolved on April 28, 2023 to repurchase shares of the Company’s
stock pursuant to the provisions of Article 459, paragraph 1 of the Companies Act, as well as Article 31of the Company’s Articles of Incorporation.
(1) Reason for Repurchase of Company Shares
Based on the financial policies of Mitsubishi Electric’s medium-term management plan, the Company
will repurchase its own stock to primarily enhance shareholder returns, strengthen capital efficiency.
(2) Details of Repurchase(i)Type of shares to repurchase:Common stock(ii)

Number of shares to repurchase:40,000,000 shares (maximum unit)(iii) Aggregate value of repurchase:¥50,000 million (maximum limit)(iv) Repurchase period: May 1, 2023-March 29, 2024(v)

Repurchase method: Market trades on Tokyo Stock Exchange

20