Mitsubishi Electric Key Growth Businesses< Building Systems>

N o ve m b e r 11 , 2 0 2 1
Mitsubishi Electric Corporation©Mitsubishi Electric Corporation

Executive Summary

1

Realize our unique value provision and contribute to solving social
challenges by providing solutions in building space (p.7)

2

Establish growth targets for FY2025 with sales of ¥650 Bn. or more,
and an operating profit margin of 10% or more (p.8)

3

4

5

©Mitsubishi Electric Corporation

Achieve ①strengthening competitiveness of products and services,②expansion of solution business, and ③higher profitability
by building a consistent business management system (pp.11-13)
Leveraging our strengths to provide energy-saving, safe, andsecure solutions which offers comfort for Smart Buildings, and tocontribute to the realization of Smart Cities (pp.18-22)
To strengthen elevators & escalators business on a global level,
expand its portfolio as well as maintenance and renewal business(pp.23-30)
2

Contents
1.

Business Overview
1-1. Business Structure
1-2. Business Details and Areas
1-3. Business Management Policy
1-4. Our Strengths
1-5. Strengthening of Business Foundation2.

Medium-Term Management Plan of Key Growth Businesses
2-1. Business Environment2-2. Overview of Key Strategy
2-3. Growth Target
2-4. Growth Strategy
2-5. Initiatives on Social Challenges©Mitsubishi Electric Corporation

Note
FY2018 : April 1, 2018 -March 31, 2019
FY2019 : April 1, 2019 -March 31, 2020
FY2020 : April 1, 2020 -March 31, 2021
FY2021 : April 1, 2021 -March 31, 2022
FY2025 : April 1, 2025 -March 31, 2026
3

1

©Mitsubishi Electric Corporation

Business Overview

4

1-1

Business Structure

Business Structure

Segment

Sub-segment

Energy & Electric
Systems

Social Infrastructure

Industrial Automation
Systems©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Key GrowthBusinesses

Building Systems

Building Systems

Factory Automation(FA) Systems

FA Control Systems(PLC, Servo, and CNC)

Automotive Equipment

xEV/ADAS

Information &Communication
Systems

Information
Systems & Service

Electronic Devices

Electronic Devices

Power Semiconductor
Devices

Home AppliancesHome Appliances

Air Conditioning &Refrigeration Systems

Electronic System

ADAS：Advanced Driver Assistance System

5

1-2

Business Details and Areas
Building Systems

Our products andservices inbuilding space

Air-Conditioning &Refrigeration Systems

Multi-airconditioner forbuilding

Packaged air
conditioner for
Equipment

Air coolingheat pumpchiller

Building management system
System control linking energysaving equipment and various
sensors

Lighting

Elevator

Pagageair conditioner

Ventilator

Escalator

Air swing fan©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi ElectricPower
receiving andtransforming
facility[Service for whole building]●One-stop proposal(Installation consultation - support)●Energy management●Smart solution proposal

Network camera

Hot water supply
equipment

Directcurrent
distribution
system[Service with product]●Equipment sales,
manufacturing andinstallation●Maintenance, remotemonitoring●Renewal(Video monitoring system)

UPSPower Systems

Emergency
power
generator

UPS: Uninterruptible Power Supply

Access control system
6

Business Management Policy

1-3- Aims -To satisfy society, customers, shareholders and employees by creating solutions
in building spaces that leverage our strengths to meet diversifying social
challanges and by providing our company's unique value
Mobility
Zero traffic accidents

Social Challenges in Building Space

Eliminate regional disparities Enrichment leisure time
Improving QOL of mobility impaired people

Comfortable transport

Eliminate traffic congestion
Reduce air pollution

Build communities

Life
HealthComfortable Life
Prepare for infectious diseases

Prevent global warming Equal opportunity for education and training
Preserve the ecosystem
Measures for deteriorating infrastructure

Avoid water/food shortageetc.
Prepare for natural disasters Clean waterIndustry and technological innovation
Address labor shortage
Elimination of poverty/inequalities
Response to uneven distribution and depletion of resources
Preparation for man-made threats

Infrastructure

Sustainable Society

Industry

Strengths of our company
Activities for value creation

Creation of comfortable, safe andsecure building spaces©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

High-quality business growth7

1-3

Business Management Policy- E f f o r t s t o C r e a t e Va l u e -Creation of comfortable, safe and secure building spaces

High-quality business growth

Contribute to the realization of a safe, secureand comfortable society and a sustainableglobal environment by solving social
challanges through business activities

Achieve growth targets bypromoting growth strategies
and strengthening businessfoundations

1.

2.

3.

Decarbonization efforts
In addition to energy conservation andenergy creation solutions for individual
buildings, energy for the entire region iscentrally managed, contributing to thecreation of a decarbonized society
through optimal regional control

Mobility

Life

Infrastructure

Industry

Revenue
Mobility

Infrastructure
Response to the “New Normal”
Utilizing technologies such as touchlesssolutions, people-flow control, and security,
we have created a more comfortable, safe,
and secure building space to respond to the
New Normal

Measures against labor shortages
Contributing to labor-saving efforts toeliminate labor shortages by enhancing
robot mobility support service and creating
more values©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

FY 2025 Growth Targets

Mobility
InfrastructureLife
Industry

Life¥650Bn. or more
Operating Profit Margin

Industry

10% or more
8

Business Management Policy

1-3- Strategic Direction -Based on the expansion of maintenance services, contribute to solving social
challanges by creating comfortable, safe, and secure building spaces through theprovision solutions making use of accumulated technologies and data, as well as
multi-business synergies
Growth strategy

Strengthen elevator and escalator
business globally
Area

Provide integrated solutions
Building
City

Original Business Areas

Areas of Business Expansion

Group ofBulfings
A single
Building

Smart Building Solutions
Comfort/Energy
conservation

Safety/Security

Value Enhancement

ZEB

A Smart Building(individual)

ZEB planner

One-stop proposal(introduction consultation ~ after-sales support)

A single
Facility

Elevator

TargetServices

sales, manufacturing, installation,
maintenance, renewal, andfacility management service

BAS

Access control

Network
cameraFrom buildings to the whole city

Convenience/
Labor saving

Air
Lighting conditioning

Smart City

Smart Buildings(consolidated)

Building Solutions< Elevators & Escalators
Business >Elevator, Escalator,(Mobility Energy
Moving walk..

・Building Management Security)●Elevator(New/Mite)< Systems
Business >●BM (BAS, access control, cameras)
BAS, Access*include,
control,●Maintenance
ZEB

Network cameras, etc.

Smart Building Service©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electricenergy conservation support, mobility support,
remote control/management, failure prediction ・・・etc.

9

1-4

Our Strengths

By combining our diverse range of building-related products, including elevators& escalators, with a wealth of field knowledge in building operation
management and advanced digital technology, our company provides uniqueintegrated solutions

Wide range ofbuilding-related
products

Elevators & escalators

Lighting

Air conditioning

Power receiving
and transforming Access control system©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Field knowledgeof building
operation
management

Advanced digitaltechnology

・Knowledge of the equipment
・Optimization know-how
responding to needs
・Operational support andmaintenance performance・Accumulation of operational
management data
・Connection with customers

・Heterogeneous data linkage ofvarious devices and systems
・Failure prediction detection
・Estimation of remaining
equipment’s life
・Optimized control and operation
by Digital Twin

10

1-5

Strengthening of Business Foundation
Restructuring of Building Systems Group

Building systems business will be integrated in April 2022 to enhance global
competitiveness by building a consistent operational structure from new installation,
maintenance, and renewal of elevators & escalators
Current
Personnel
Mitsubishi Electric(Building Systems Division)
Net sales
Mainly responsible forNo. ofsites
sales/development/
manufacturing/installation of elevators& escalators’ new installation

Mitsubishi Electric Building
Techno-Service
Personnel
Mainly responsible formaintenance services, and renewal Net sales
sales/development/manufacturing/
No. ofinstallation of elevators & escalators sites

Approx.
3,000¥134.8Bn.
12Approx.
10,000¥319.5
Bn.
274

After
restructured

Personnel
Net sales
No. ofsites

Approx.
13,000Approx.

¥400Bn.

274

Mitsubishi Electric
Building Solutions
Mitsubishi Electric Building Systems Division×
Mitsubishi Electric Building Techno-Service

Consistently in charge from new installation
to maintenance and renewal*To be concurrent with Mitsubishi Electric for partial management and solution promotion across business segments

Mission©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Create value in building spaces and contribute to solving social challanges by
providing integrated solutions that combine products and services, which are thestrengths of the new company, and the knowledge gained through theiraccumulation with advanced ICT
11

1-5

Strengthening of Business Foundation
A consistent business management
system enables① Strengthening competitiveness of
products and services② Expansion of solution business③ Higher profitability

Strengthen Global Positioning
New Installation
Sales

Current
After
restructured©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Development / Manufacturing

RenewalMaintenanceInstallation

Mitsubishi Electric

Maintenance

Sales

Development / Manufacturing

MaintenanceInstallation

Maintenance

Mitsubishi Electric Building Techno-Service

Mitsubishi Electric Building Soutions (New Company)

12

1-5

Strengthening of Business Foundation< Effects of the Integrated System >① Strengthening competitiveness of products and services
Sales

Enhancing customer responsiveness and improving service quality through onestop operations

Development and manufacturing

Strengthening competitiveness of products and services through consistentdevelopment planning

Installation and maintenanceMaximizing field capacity with multi-skills, optimizing resource allocation② Expansion of solution business
Creation of new solutions by utilizing accumulated technologies and data from various building facilities, mainly
elevators & escalators
Strengthening collaboration with other businesses by sharing knowledge and enhancing group's comprehensive
proposal capabilities->Promotion by the Building Solutions Division of Mitsubishi Electric to strengthen cooperation among business groups,
group companies, and other companies
Enhancing cooperation with air conditioning & refrigeration systems business->Strengthening proposal capabilities utilizing knowledge based on Mitsubishi Electric Building Techno-Service’s expertise inmaintenance and renewal business of air conditioning & refrigeration systems③ Higher profitability
Improving business processes and streamline organizations by eliminating overlapped functions< Quality enhancement and corporate culture reform of new company>

・Establishment of an independent Quality Assurance department under the direct control of the President tocheck inspection operations
・Enhancement of inspection operations through quantitative evaluation based on appropriate procedures・Improving the level of business quality by promoting standardization and digitization of business processes
・Preventing fixation of corporate culture by active personnel rotation between Mitsubishi Electric and the newcompany,
and within the new company©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric13Medium-term Management Plan

2

©Mitsubishi Electric Corporationof Key Growth Businesses

14

2-1

Business Environment

G l o b a l d e m a n d f o r e c a s t fo r S m a r t Bu i l d i n g s *(¥ Tn.)

20

CAGR
11.4%

10

0

FY2020

FY2021

FY2022G l o b a l d e m a n d fo r e c a s t f o re l e v a to r s & e s c a l a to r s *New installation(¥ Tn.)

Maintenance/Renewal＜Asia＞(¥ Tn.)

0

FY2020

FY2025＜Japan＞(¥ Tn.)

5

1

1.2%

0

FY2020©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

FY2021

FY2025＜Europe/America＞
5.7%

7.2%

6.0%

FY2025

5

CAGR

10

FY2024FY20230

FY2020*Assumed values by Mitsubishi Electric. For Smart Buildings, it includes facility monitoring and control
function and data linkage function in building management on a global scale.

FY2025

FY2020

FY2025＜Middle East/Africa/
Latin America and others＞

7.7%

FY2020

FY202515

2-2Overview of Key Strategy

CorporatevisionProvidedvalueWorld’s leading provider of building solutions
Creation of comfortable, safe andsecure building spaces

High-quality business growth

Key strategy
Growth strategy

Provide integrated solutions① Provide smart building solutions ② Contribute to the realization of Smart Cities
Strengthen elevators & escalators business in global market③ Expand portfolio of
elevators & escalators④ Expand maintenance and renewal business

Strengthening of Business Foundation

Restructuring of Building Systems Group©Mitsubishi Electric Corporation

16

2-3

G r o w t h Ta r g e t

Aim to achieve targets by expanding the system/solution business in addition to the
new installation, maintenance and renewal business of elevators & escalators
FY 2020 Results

FY 2025 Targets

Revenue¥502.1Bn.

¥650Bn. or more

Operating
Profit Margin

5.1%

10% or more

Elevators & Escalators
Business(¥ Bn.)
+250
+350

+480
Renewalexpansion+650

650 or more

Strengthen
integrated
solutions

Maintenanceexpansion

502.1

FY2020©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi ElectricPortfolio
expansion

FY202517

2-4Growth Strategy:(1) Provide Integrated Solutions
Provide Smart Building solutions

The needs and value of building solutions, and the key technologies that enable
them have changed over time. In the future, platforms collaborating with various
building facilities will play an important role
Needs and value provided

New Normal/ Decarbonized/
Labor saving / Disaster prevention/
Disaster reduction, etc.

Comfort / Energy
conservation/
Safety / Security

Improvement of
convenience
Technologic trend
Centralized
control

Facility
coordination
Distributed
control
Remote monitoringand inspection

People-flow
control
Utilization of operating
management data

Building equipment operation system“Facima”
Access control system “MELSAFETY”©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

AI

Open API

5G

Touchless solutions

Products and Services
Central monitoring system

IoT

Security

Digital Twin

Platform
LinovaIntegration of access control
system - air conditioning,lighting, work attendance
management system

ZEB
Robot utilization

Develop into Smart Cities

Smart Buildings

18

2-4

Growth Strategy:(1) Provide Integrated Solutions
Contribute to the realization of Smart Cities

Solving social challenges by utilizing data beyond business boundaries
Use ofnaturralenergyCitiesrobots cancoexistCitiespeople canstay intimes ofdisaster

Energycost
reduction
services©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

IoT

5G
AI

INFOPRISM: IoT Platform for Social and Power Infrastructure

Automatic
baggagedeliveryservices

Watch overevery
corner of
the city

Safetyconfirmation
at the time ofdisaster

In-Town
supportsystemLinova: IoT Platform for Home Appliances and Equipment

19

2-4

Growth Strategy:(1) Provide Integrated Solutions
ZEB delivery projects
in Japan(As of June 2021)

As a ZEB planner, Mitsubishi
Electric supports the introductionof ZEB from design to operation,
regardless of whether it is newly
built or renovated

IWATEJISHO K.K. Kitakami Ekimae Building
Serviced senior residence “YONEKI Premium”

SHIGEMITSU SHOJI CO., LTD. Head Office

ABE KENSETSU, K.K. New Company Building
ABE KENSETSU, K.K. Jyōetsu Branch Office
ICHIBATA JYUSETSU CO.,LTD. Head Office Administration Building

TAIYO NO MURA Administration Building

CHUDENKO CORPORATION
Okayama Supervising Branch

SS Building
CH Building

FUJIKOSAN Building

Jinryō Office

SHIRASAGI DENKI KOGYO CO., LTD.HeadOffice

HOWA, K.K. Tsu Service Office

HISANAGA, K.K. Miyazaki Branch Office

SHOWA DENGYO K.K. Head Office

HISANAGA INFORMATION MANAGEMENT CO.LTD.
New Head Office Building

WATT LABO OSAKA SANKO TRAINING CENTER(Unit:Items)

FY2018FY2019FY2020Market
size

83
144
204

Orders
Received

1018
31

HOWA, K.K. HOWA Building Tsu ChuoZEB Oriented

ZEB Ready

Nearly ZEB『ZEB』

Buildings with a total area of
10,000 m2 or more, excluding
renewable energy, that aredesigned to save 30-40% of thestandard temporary energy andintroduce unevaluatedtechnologies

Buildings designed to save 50%
or more of the standard
temporary energy, excluding
renewable energy

Buildings that meet theconditions of ZEB ready while
adding renewable energy andreducing the standard primaryenergy consumption by 75% or
more

Buildings that meet theconditions of ZEB ready while
adding renewable energy andreducing the standard primaryenergy consumption by 100% or
more*The market size is the number of ZEB certification acquired by BELS (Building-Housing Energy-efficiency Labeling system) in the fiscal year concerned. Orders received include projects for planners fromother companies (equipment supply implementation in our company).

©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

20

2-4

Growth Strategy:(1) Provide Integrated Solutions

Promote ZEB and contribute to decarbonization
Enhancementof functions

Energy management service
ZEB operation
supportRemote monitoring and control
function
Released November 2021

Support for energy management improvement
Delivery project of integrated solutions (ZEB)
after completion of ZEB, and support for labor ZEB Technology Test Facility “SUSTIE” (Kanagawa Pref.)saving in building management throughcentralized management of multiple buildings
via the Internet

Ville-feuille, Mitsubishi Electric’s original
IoT platform for Smart Cities andBurildings. In October 2020, we beganproviding building management services
using this platform, and will continue toexpand the services in the future.
©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi ElectricWorld's highest level of primaryenergy consumption in mediumsized office buildings of 6,000 m2
or moreAccelerate ZEB Support for
medium-sized buildings throughvarious demonstration
experiments
Completed in 2020

ZEB rank: 『 ZEB』

21

2-4

Growth Strategy:(1) Provide Integrated Solutions

Contribute to the elimination of labor shortages
by enhancing robot mobility support services
Enhancementof functions

Robot mobility support service

Access control system linkage
Released November 2021

Supporting the safe coexistence of humans and service
robots for security, cleaning, and delivery in buildings

Deivery project of robot mobility support service

 Tokyo Portcity Takeshiba (Tokyo Metropolis)
As a solution to realize Tokyo Portcity Takeshiba’s“coexistence of humans and robots,” Mitsubishi Electric
provides a platform for security and delivery robots that
autonomously ride on and out of elevators and moveverticallyCompleted in 2020
©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric< Products and Technologies Introduced >・Elevators
・Robot mobility support service
・Destination Oriented Allocation System ”DOAS”
・Access control system integrated with “DOAS"

22

2-4

Growth Strategy:(2) Strengthen Elevators & Escalators
Business in Global Market
Expand portfolio of elevators & escalators① Further strengthening of premium market
Further expand share in premium market by providing new models andaccelerating functional development to meet social needs
Improving added value through the development of new products and newfunctions to meet social needs->Touchless, antibacterial/antivirus, security, BCP measures, robot collaboration, etc.
Project responding to Social Needs

 Tenjin Business Center (Fukuoka Pref.)

AXIEZ-LINKs

NEXIEZ-MRL Version 2

Released October 2020 Released October 2021
machine-room-lessmachine-room-less elevator
elevator for Japanfor global

Completed in 2021

< Products and Technologies
Introduced >・Elevators
・Destination
Oriented Allocation
System ”DOAS”
・Access control system
integrated with “DOAS"
・Visitor reception system using
an aerial display
Achieving
touchless offices and contributie
to infectious disease control

Continue to expand functions to meet social needs and gain further presence©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

23

2-4

Growth Strategy:(2) Strengthen Elevators & Escalators
Business in Global Market
 8111 Douglas, Dallas, Texas (USA)Recently secured projects

・11 high-speed elevators

 Commerzone Madhapur Altimus (India)

・A total of 71 units including highspeed elevators

Secured in 2021

Secured in 2021

 Shenzhen Galaxy Twin
Towers (China)
・48 high-speed elevators

Secured in 2019 - 2020 One Bangkok (Thailand)・Thailand's first double-deck elevator, a totalof 278 units, including the fastest elevators in
Thailand
Secured in 2021

©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

24

2-4

Growth Strategy:(2) Strengthen Elevators & Escalators
Business in Global Market② Capturing volume market
Increase share by capturing volume market where demand continues togrow by utilizing products developed independently by regional bases
Segment-by-segment strategy utilizing costcompetitive products originally developed bymanufacturing bases

Increase share in volume market,-continue sales expansion with models thatmeets regional needs and characteristics-develop and introduce models with local
specifications
MOVE-Increase the number of maintenance units
by expansion of new installation-Aim to grow as a cyclical development
business for future renewal©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi ElectricMade by EMEC
machine-room-lesselevator

EMEC: Mitsubishi Elevator Europe B.V.

LEHY

Made by SMEC
elevator withmachine room

SMEC: Shanghai Mitsubishi Elevator Co., Ltd.

25

2-4

Growth Strategy:(2) Strengthen Elevators & Escalators
Business in Global Market

China to be a major global development and production base in addition
to Thailand
Enhance product competitiveness by consolidating global development andproduction into two bases
Other bases to be regional development and production bases
Strengthen local development and introduction of models with local
specifications that meet regional characteristics◆Elevators for global premium market◆Elevators for China premium market
Netherlands(EMEC)

China(MESE)◆Ultra-high-speed, specially designed
elevators & escalators for global◆Elevators & escalators for Japan

Korea(KMEC)◆Volume market elevators
for Europe

Japan(Inazawa)◆Elevators & escalators for global
volume market◆Elevators & escalators for China

China(SMEC)
Mexico(MELMEX)

Taiwan(TMEC)
India(IMEC)◆Elevators & escalators for global
premium market

Thailand(AMEC)

Colombia(MELCOL)

Indonesia(MJEE)

Mother factory©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Mexico(IDESA)

Global manufacturing
factory

Regional supply
factory

Parts supply
factory26

2-4

Growth Strategy:(2) Strengthen Elevators & Escalators
Business in Global Market
Expand maintenance and renewal business① Expand maintenance services utilizing ICT and AI
Further improve maintenance quality, sophisticate/optimize in maintenanceservice through utilization of remote monitoring/facility operation data
240,000 units as the largest number of maintenance units in Japan (as of October 2021)
High-quality 24/7 maintenance service with
abundant field knowledge

Remote maintenance service “ELE FIRST Smart”
utilizing AI, launched in Japan in April 2021
Advanced inspection services utilizing AI

Response to disasters

Remote inspection is performed 24/7, andthe modulation before failure is automaticallynotified to the information center. In addition
to predicting deterioration signs and life ofequipment and parts with AI and preventing
failures, AI analysis is used to estimate thecause of failures and remote restarts reduce
downtime due to failures.

・Automatically diagnoses elevators that have been
stopped by the control operation device during anearthquake, and after confirming safety, resumes
operation in a minimum of about 15 minutes.
(Available up to 200Gal
and seismic intensity 5+)・Linked with “risk distribution of heavy rain warning(flood damage)” data of the Japan Meteorological
Agency. When an alarm is issued, it automaticallywaits / pauses on the upper floors to reduce flood
damage.

©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

27

2-4

Growth Strategy:(2) Strengthen Elevators & Escalators
Business in Global Market
Global remote maintenance service "M's BRIDGE" was introduced
overseas in October 2019, and the provided countries are expanding

Continue to provide advanced, high-quality
maintenance services that leverage our strengths
Field knowledge ofbuilding operation
management©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Advanced digitaltechnology

Provide newmaintenance solutions
28

2-4

Growth Strategy:(2) Strengthen Elevators & Escalators
Business in Global Market② Expand maintenance portfolio with multi-brand maintenance
Expand maintenance business by expanding the scope of maintenanceservices including other than our own products<Japan>Utilizing the know-how ofHanshin Transport Co., Ltd. in our group,
we will expand maintenance menus anddevelop a multi-brand maintenance system<Overseas>
Aggressively carry out our group's maintenance activities, including
products other than our own. At the same time, in order to acquireknow-how for multi-brand maintenance, expand the maintenancemenu, and strengthen the business foundation, we will consider
capital participation and cooperation with maintenance-dedicatedcompanies
By increasing the number of maintenance units, we aim to growas a cyclical development business that will lead to future renewal©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

29

2-4

Growth Strategy:(2) Strengthen Elevators & Escalators
Business in Global Market

Since the export of the first unit to overseas in 1950, we have expanded our business to
94 countries, and aim to expand market coverage and acquire missing parts by promoting
various strategies including capital participation and collaboration for further development
Overseas business strategy

・ Strengthen product capabilities by launching new models and expand market coverageby utilizing regional production bases
・ Rapid launch of products that meet market needs through collaboration and expansionof portfolio by capital participation in companies with manufacturing and development
functions in the target area
・ Expansion of maintenance business through capital participation and collaboration witha maintenance company
・ Expansion of global remote maintenance service utilizing technology and know-how
cultivated in Japan・ Building a regional-led management system by establishing the Regional Strategy Office・ Expansion of Smart Building business by utilizing original IoT platform・ Expansion of solution business in collaboration with air conditioning & refrigeration
systems business
Utilize Mitsubishi Electric’s strategic investment facility for capital participationand collaboration with companies with manufacturing and development
functions and maintenance companies©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

30

2-5

Initiatives on Social Challenges

Contributing to solving social challenges to achieve sustainability
・Achieving a sustainable global environment by contributing to the spread of ZEB
・Realization of a safe, secure, and comfortable society through solutions to
respond to the New Normal■Materiality to realize
sustainability
Provide solutions
to social challenges
through ourbusiness

Realize a sustainableglobal environment
Realize a safe, secure,and comfortable society

Strengthen our businessfoundation to enable oursustainable growth

Strengthen corporate
governance and complianceon a sustainable basis
Create a sustainability-oriented
corporate culture

Life

Avoid water shortage/ food shortage etc.
Industry and technological innovation
Eliminate poverty/ inequalities
Clean water
Address labor shortage
Response to uneven distribution
Prepare for man-made threats
and depletion of resources
Prepare for natural disasters

Industry

Sustainable society

Mobility

Life

Infrastructure

Industry

Highly relevant SDGs

region is centrally managed, contributing to the creationof a decarbonized society through optimal local control

2. Response to the “New Normal”
human flow control, and security, we have created a

Zero traffic accidents
Enrich leisure time
HealthComfortable transport Eliminate regional disparities Comfortable life
Eliminate traffic congestion
Improve QOL of mobility impaired people
Reduce air pollution Build communities
Prepare for infectious diseases
Equal opportunity for education and training
Measures for deteriorating
Prevent global warming
Preserve the ecosysteminfrastructure©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

In addition to energy conservation and energy creation

Utilizing technologies such as contactless solutions,■Social Challenges

Infrastructure

1. Decarbonization Efforts

solutions for individual buildings, energy for the entire

Respect for all people

Mobility

Provide solutions to social challenges Realize a sustainable global environment
Realize a safe, secure, and comfortable society
through our business

Mobility
InfrastructureLife
Industry

Highly relevant SDGs

more comfortable, safe, and secure building space torespond to the New Normal

3. Measures against labor shortages
Contributing to labor-saving efforts to eliminate
labor shortages by enhancing robot mobility

Mobility
InfrastructureLife
Industry

Highly relevant SDGs

support and creating more value
31Appendix©
Mitsubishi Electric
Corporation©Mitsubishi
Electric
Corporation

32

Appendix
Consolidated sales and new company sales of building systems business
Consolidated Sales of Building Systems Division (breakdown)
Mitsubishi Electric¥134.8 Bn.

FY2020Results

Mitsubishi Electric Building-Techno Service¥319.5 Bn.

Equivalent to Mitsubishi Electric Building Solutions(New Company)
Approximately ¥400 Bn.

Consolidated
Elimination

Consolidated Net Sales¥502.1 Bn.

FY2025
Targets

Other Domestic and Overseas Affiliates
Approximately ¥280 Bn.

Mitsubishi Electric Building Solutions (New Company)¥450 Bn.
Consolidated Net Sales¥650 Bn. or more

Consolidated Elimination,

Appropriation for Living environment & DigitalMedia equipment group

Other Domestic and Overseas Affiliates
Consolidated Elimination

Appropriation for Living environment& Digital Media equipment group Aim for consolidated sales of ¥502.1Bn. in FY2020 to more than ¥650Bn. in FY2025
 The new company aims to achieve sales of ¥450Bn. in FY2025, up from about ¥400Bn.
which is equivalent to the actual amount of FY2020 (Including appropriation for Living environment & Digital Media equipment group)©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric33

Appendix
Consolidated sales composition target for FY2025
South America, Africa, etc.

overseas Europe
and America
Other
Asia

Japan

South America, Africa, etc.

overseas

Other
Asia

Total
¥502.1Bn.

Japan

Europeand America

Totalmore than¥650Bn.

China
China

FY2020system/solutionssystem/solutionsnewinstallation

Total¥502.1Bn.
maintenance/
renewalFY2020elevators/
escalators

FY2025newinstallation

Total
more than¥650Bn.
maintenance/
renewalelevators/
escalators

FY2025

 Expand overseas ratio from 42% to 48% by capturing overseas volume market and maintenance demand Expansion of new Installations, maintenance/renewal, and system/solutions©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric34

Appendix
Main HR development and technnical verification facilities for maintaining andimproving the quality of building system products and services

Educational Center

QM Center

Mitsubishi Electric
Building-Techno Service

Mitsubishi Electric
Building-Techno Service

Inazawa Works

Inazawa Installation
Training Center“Takumi”
Inazawa Works©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Modernization Training
Building “Ren”

Training facilities
35Appendix
List of affiliated companies appearing in the materials
Abbreviation Country
Name
Mitsubishi Electric Building Techno-Service
Co., Ltd.

Business summary
maintenance / repair / installation of various building equipment
and various electrical machinery / equipment andcomprehensive management of the building

MELTEC

Japan

SMEC

China

MESE

China

GDRLE

China

KMEC

South
Korea

TMEC

TaiwanAMEC

ThailandMitsubishi Elevator Asia Co., Ltd.

manufacturing / sales of elevators & escalators

MET

ThailandMitsubishi Elevator (Thailand) Co,. Ltd.

sales / installation / maintenance of elevators & escalators

IEE

Philippines International Elevator & Equipment, Inc.

MJEE
MELM

manufacturing / sales / installation / maintenance of elevators &escalators
Mitsubishi Electric Shanghai Electric Elevator manufacturing / sales / installation / maintenance / research /Co.,Ltd.
development / engineering of elevators
manufacturing / sales / installation / maintenance of elevators &Guangdong Ryoden Lift & Escalator Co., Ltd.
escalators
manufacturing / sales / installation / maintenance of elevators &Mitsubishi Elevator Korea Co., Ltd.
escalators
manufacturing / sales / installation / maintenance of elevators &Taiwan Mitsubishi Elevator Co., Ltd.
escalators
Shanghai Mitsubishi Elevator Co., Ltd.

sales / installation / maintenance of elevators & escalators,
refrigeration systems, generators
manufacturing / sales / installation / maintenance of elevators &Indonesia PT. Mitsubishi Jaya Elevator and Escalator
escalators
MITSUBISHI ELEVATOR MALAYSIA SDN. sales / installation / maintenance of elevators & escalators,
Malaysia
BHD.
refrigeration systems, building equipment

MESP

Singapore

MITSUBISHI ELEVATOR (SINGAPORE)
PTE. LTD.

sales / installation / maintenance of elevators & escalators,
building equipment, and electronic equipment

VMEC

Vietnam

MITSUBISHI ELEVATOR VIETNAM CO.,LTD

sales / installation / maintenance of elevators & escalators©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric36Appendix
List of affiliated companies appearing in the materials
Abbreviation Country
Name
IMEC

India

Mitsubishi Elevator India Private Limited

AG-MELCOUAE

AG MELCO Elevator Co. L.L.C.

MELSA

Saudi Arabia Mitsubishi Electric Saudi Ltd.

MSAFMELCO-MEC Egypt for Elevators &Escalators
South Africa Melco Elevator (South Africa) Pty. Ltd.

EMECNetherland Mitsubishi Elevator Europe B.V.

MEU

Netherland Mitsubishi Electric Europe B.V.

MEGPT

Egypt

MEUS

USA

Mitsubishi Electric US, Inc.

IDESA

MexicoInternacional de Elevadores, S.A. de C.V.

MELMEX

MexicoMitsubishi Electric de Mexico,S.A. de C.V.

MELCOL

Colombia

Mitsubishi Electric de Colombia Ltda.

HWAC

Chile

©Mitsubishi
ElectricCorporation
Corporation©Mitsubishi Electric

Heavenward Ascensores S.A.

Business summary

manufacturing / sales / installation / maintenance of elevators &escalators
sales / installation / maintenance of elevators & escalators
sales / installation of heavy electric appliances, elevators &escalators, and electronic devices, civil engineering work, andlocal transportation contracts
sales / installation / maintenance of elevators & escalators
sales / installation / maintenance of elevators & escalators
manufacturing / sales / installation / maintenance of elevators &escalators
Mitsubishi Electric’s general sales company in Europe (sales ofrefrigeration systems, semiconductors, automobile equipment,
FA equipment, video information equipment, heavy electricalwork, material procurement)
Mitsubishi Electric’s representative organization in U.S. and its
sales subsidiary (refrigeration systems, elevators & escalators,
semiconductors and video-information equipment, material
procurement)
manufacturing of elevators
manufacturing / sales / installation / maintenance of elevators &escalators, and manufacturing / sales / maintenance of rollingstock systems
manufacturing / sales / installation / maintenance of elevators &escalators, and sales / installation / heavy electrical work of
refrigeration systems
sales / installation / maintenance of elevators & escalators
37

Cautionary Statement

While the statements herein including the forecast of the Mitsubishi Electric Group are based on assumptions the Group considers to
be reasonable under the circumstances on the date of announcement, actual results may differ significantly from forecasts.
Such factors materially affecting the expectations expressed herein shall include but are not limited to the following:
1.
2.
3.
4.

Any change in worldwide economic and social conditions, as well as laws, regulations, taxation and other legislation
Changes in foreign currency exchange rates, especially JPY/dollar rates
Changes in stock markets, especially in Japan
Changes in balance of supply and demand of products that may affect prices and volume, as well as material procurement
conditions
5. Changes in the ability to fund raising, especially in Japan
6. Uncertainties relating to patents, licenses and other intellectual property, including disputes involving patent infringement
7. New environmental regulations or the arising of environmental issues
8. Defects in products or services
9. Litigation and legal proceedings brought and contemplated against the Company or its subsidiaries and affiliates that may
adversely affect operations or finances
10. Technological change, the development of products using new technology, manufacturing and time-to-market
11. Business restructuring
12. Incidents related to information security
13. Large-scale disasters including earthquakes, typhoons, tsunami, fires and others
14. Social or political upheaval caused by terrorism, war, pandemics, or other factors
15. Important matters related to the directors and executive officers, major shareholders and affiliated companies of Mitsubishi
Electric Corporation©Mitsubishi Electric Corporation

38