FOR IMMEDIATE RELEASE

Mitsubishi Electric to Transfer Distribution Transformer Business toHitachi Industrial Equipment SystemsTokyo, April 5, 2024 – Hitachi Industrial Equipment Systems Co., Ltd. (Head Office: Chiyoda-ku,Tokyo; President and CEO: Yasuhiro Takeuchi; hereinafter “Hitachi Industrial EquipmentSystems”) and Mitsubishi Electric Corporation (Head Office: Chiyoda-ku, Tokyo; President &CEO: Kei Uruma; hereinafter “Mitsubishi Electric”) today announced that they have agreed totransfer the distribution transformer business of Mitsubishi Electric’s Nagoya Works, whichdevelops and manufactures factory automation (FA) equipment, to Hitachi Industrial Equipment
Systems and integrate their businesses (hereinafter “Business Transfer”). After obtaining
approval from the relevant authorities, assets and other items related to the distribution
transformer business (development, design, manufacturing, sales, and maintenance) at
Mitsubishi Electric’s Nagoya Works will be transferred to Hitachi Industrial Equipment Systems
in stages beginning in October 2024, with completion scheduled for April 1, 2026. The BusinessTransfer does not include the transformers manufactured at Mitsubishi Electric’s Transmission &Distribution Systems Center, Ako Factory.

Through this Business Transfer, Hitachi Industrial Equipment Systems will expand its productlineup of highly energy-efficient and eco-friendly transformers and accelerate the growth of gridedge solutions*1 centered on power distribution systems, mainly in the domestic market.
Furthermore, the company aims to contribute to the sustainable evolution of Japan’s powertransmission and distribution network by utilizing Hitachi Group’s wider capabilities in IT, OT,and Products. Mitsubishi Electric will focus on expanding its FA systems business based on its
portfolio strategy of concentrating investments in priority growth businesses.
Distribution transformers serve the function of lowering the voltage of high-voltage electricity
generated by power plants, so that the power can be used to meet the needs of the users. They
are installed at relay points of the power grid, such as substations, public facilities, businessfacilities, and commercial facilities.
With the global diversification of power generation sources due to the spread of renewableenergy and the increasing demand for electric power due to the expansion of data centers andsemiconductor manufacturing with the spread of generative AI and Digital Transformation (DX),the demand for power distribution transformers is expected to grow globally over the long term.
In Japan, the Top Runner Program under the Energy Conservation Law sets targets for
improving energy consumption efficiency, and distribution transformers used in factories andbuildings are expected to achieve improvement by 11.4% in the fiscal year ending March 31,2027 compared to the actual value for the same period ending 2020. The improvement ofenvironmental performance is becoming indispensable, and in 2026, the market is expected toexpand by more than 10% from the 2022 level.*2*1 Various solutions that operate where transmission and distribution systems and customer-side devices areconnected*2 Source: Fuji Keizai Group, “Current Status and Future Forecast of the Domestic Power Distribution and Receiving
System Related Market, 2023 Edition”

1Hitachi Group is expanding its transformer business globally as one of the key products forachieving carbon neutrality. As a leading manufacturer of distribution transformers in Japan,
Hitachi Industrial Equipment Systems provides products that achieve superior energy efficiency
by using “amorphous metal” with low power loss in the iron core, and products that achieve highenvironmental performance and safety by using vegetable oil (ester oil).
Furthermore, as part of the Hitachi Group, the global leader in transformers, Hitachi Energy, isoffering liquid-filled and dry-type transformers, as well as services for complete life-cycle support
to utilities, industrial and transport sectors by ensuring high reliability and optimized performance
while lowering life-cycle costs and environmental impact.
Mitsubishi Electric’s distribution transformer business based at its Nagoya Works has evolved
and inherited technologies cultivated through years of experience. More recently it has beenpromoting a rich lineup of Top Runner oil-filled transformers such as the R series, in pursuit ofenergy-saving performance. Looking forward, to strengthen the business further and ensure astable supply of products, the company duly decided on the Business Transfer to Hitachi
Industrial Equipment Systems.
Hitachi Industrial Equipment Systems and Mitsubishi Electric shared a common vision that
integrating the technologies and assets of the two companies to improve energy efficiency andincrease business value through the development and provision of more environmentallyfriendly products is the best way to achieve the advanced power transmission and distribution
network required in Japan. Furthermore, the integration will contribute to the Japanese
government’s aim to achieve “carbon neutrality by 2050.” Accordingly, the top management of
the two companies came to the agreement at this time.
Yasuhiro Takeuchi, President and CEO, Hitachi Industrial Equipment Systems“The desire to contribute to Japan’s carbon neutrality in 2050 is behind this integration. Hitachi
Industrial Equipment Systems globally provides industrial equipment that supports social
infrastructure and manufacturing, and transformers are indispensable products for building agreener and more intelligent domestic power transmission and distribution network in Japan.
We are confident that through a steady integration process, we can contribute to realizing thesustenance of society within ‘Planetary Boundary’ which is the target of the Hitachi Group.”
Toshie Takeuchi, Executive Officer (Group President, Factory Automation Systems), Mitsubishi
Electric“Starting in 1952, the Nagoya Works distribution transformer business has over 70 years ofproduction experience. We are pleased that Hitachi Industrial Equipment Systems will inherit
our technology that has been cultivated over many years, as it can contribute to thedevelopment of the distribution transformer industry. We will gradually proceed with thebusiness integration while continuing our supply to the market. In the future, we will focus on
expanding the factory automation systems business and our Circular Digital-Engineeringbusiness.”2

Outline of Hitachi Industrial Equipment Systems Co., Ltd.
5-1, Sotokanda 1-chome, Chiyoda-ku, Tokyo
Location
Sumitomo Fudosan Akihabara First Building
Date ofApril 1, 2002
Establishment
Power distribution systems business, air compressors and related
equipment business, marking equipment and systems business, pumps
Businessbusiness, clean air equipment business, crane system-related equipment
business, drives and IoT equipment business, etc.
Websitehttps://www.hitachi-ies.co.jp/english/
Outline of Mitsubishi Electric Corporation
Location
7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo
Date ofJanuary 15, 1921
Establishment
Development, production, sales, and service of products in infrastructure,
Businessindustry, mobility, life, and business platforms
Websitehttps://www.MitsubishiElectric.com<Customer Contacts>
Power Distribution Systems Groups
Hitachi Industrial Equipment Systems Co., Ltd.
Hitachi Industrial Equipment Systems (hitachi-ies.co.jp)
Factory Automation Systems Group
Mitsubishi Electric Corporation
https://www.MitsubishiElectric.com/fa/support<Media Contacts>
Global Brand & Communications Department
Sustainable Management Strategy Group
Hitachi Industrial Equipment Systems Co., Ltd.
Global-Communications@hitachi-ies.co.jp
Public Relations Division
Mitsubishi Electric Corporation
prd.gnews@nk.MitsubishiElectric.co.jp

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