Mitsubishi Electric Key Growth Businesses< Air Conditioning and Refrigeration Systems >N o ve m b e r 11 , 2 0 2 1
Mitsubishi Electric Corporation©Mitsubishi Electric Corporation

Executive Summary

1

2

The medium-term management plan (Advance & Innovation 2025) for FY2025
is 1.26 trillion yen in sales and an operating profit margin of 12% (p. 11).
We will expand existing and new businesses by accelerating the developmentof products that meet the needs of each region and providing life cycle
solutions as a comprehensive electronics manufacturer (p. 15).

3

We will make strategic investments in development (approx. 200 billion yen)
and in production (approx. 180 billion yen) by FY2025 to realize our growthstrategy (p. 19 -20).

4

We will provide comprehensive life cycle solutions globally and strengthening
proposals that contribute to solving social challenges such as decarbonization,
safety and security (p. 21 -25).

©Mitsubishi Electric Corporation

2

Ta b l e o f C o n t e n t s

1. Home Appliances Business Overview
1-1. Positioning of Home Appliances Business1-2. Home Appliances Business Structure
1-3. Home Appliances Future Vision2.

Medium-Term Management Plan of Key Growth Businesses
2-1. Business Environment2-2. Growth Target
2-3. Scenario for Growth2-4. Strengths of Our Company
2-5. Core Strategies
2-6. Integrated Solutions
2-7. Area Strategies
2-8. 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

Home Appliances Business1©Mitsubishi Electric Corporation

Overview

4

P o s i t ioning o f H o m e Ap p l i a n c es

1-1

Business

Positioning of Home Appliances and Air-Conditioning Refrigeration Business
Segment

Sub-segment

Energy & Electric
Systems

Social Infrastructure

Industrial Automation
Systems

Building Systems

Building Systems

Factory Automation(FA) Systems

FA Control Systems(PLC, Servo, and CNC)

Automotive Equipment

xEV/ADAS

Information
Systems & Service

ADAS：Advanced Driver Assistance System

Information &Communication
Systems

Electronic Systems

Electronic Devices

Electronic Devices

Power Semiconductor
Devices

Home AppliancesHome Appliances

Air Conditioning &Refrigeration Systems

Sales of home appliances in FY2020 1038.3 billion yen(24.7% of total sales)©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

Key GrowthBusinesses

Sales of air-conditioning and cooling systems in FY2020
810 billion yen(Home Appliances segment sales ratio: 78%)

5

1-2

Home Appliances Business StructureHome Appliances Business Structure

Air Conditioning & Refrigeration
Systems Business
•
•
•
•
•
•

Room Air Conditioners
Package Air Conditioners
Variable Refrigerant Flow
Ventilators for Commercial
Industrial Cold Equipment
Chillers, etc.

Domestic and Overseas sales (FY2020)
Domestic: 36%/ Overseas: 64%©Mitsubishi
Electric Corporation
Corporation©Mitsubishi ElectricHome Appliances &Digital Media Equipment
Business

Lighting, Ventilation,
Home Equipment
Business••••

Residential Ventilators
Water Heater
IH Cooking Heater
LED Lighting, etc.

Domestic and Overseas sales (FY2020)
Japan: 100%•••

Refrigerators
Vacuum Cleaners
Rice Cookers, etc.

Domestic and Overseas sales (FY2020)
Domestic: 70%/ Overseas: 30%

6

1-3

H o m e Ap p l i a n c es F u t u r e Vi s ion
Home Appliances Future Vision

We will contribute to the realization of a safe, secure, and comfortable society and a decarbonized society byproviding "life solutions that allow everyone, at work and at home, to live 100 years in their own way,"with a focus on life, from the home to society, infrastructure, and industry.
Safe and Secure

Optimal Productivity

Living Environment

and Energy Efficient
Environment

Social challenges

High-quality Air
Environment
Management©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

Worry-free Environment ofViruses and Air Quality
7Medium-term Management Plan

2

©Mitsubishi Electric Corporationof Key Growth Businesses

8

2-1

Business Environment
Changes in the Market Environment< Diversified Social challenges>
Accelerating Our Efforts for Decarbonization• With frequent disasters and extreme weather events, reducing CO2 emissions to prevent global warming is
an urgent international issue.
• In order to achieve zero energy consumption in houses and buildings, it is necessary to increase the efficiency ofbuildings, switch to low GWP and “green” refrigerants, and accelerate the shift to a fossil fuel-free society.

Increasing Awareness of Health, Safety and Security• It has become increasingly more critical than ever to cope with the risks of diseases such as COVID-19 and tomaintain a healthy and high-quality life both physically and mentally with the advent of a super-aging society.
• There is a growing need for anti-viral, anti-bacterial, and other hygiene products, as well as for family andemployee security and protection.

Acceleration of Digitalization• The development of technologies such as AI, the development of IoT, and the adoption of 5G, as well as the“new normals,” such as working from home, are having an impact on the lives of people and are significantly
transforming society.
• It is necessary to respond to increased data processing and communication volume growth, and to decarbonize
the energy used for data processing.

▶ Realization of a safe, secure andcomfortable society▶ Realization of a decarbonized society©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

GWP: Global Warming Potential

Pursuit of Sustainability
Our SDGs Contributing
to Achievement

9

2-1

Business Environment
Global Demand Trends for Air Conditioning and Environmental Regulations

Due to the effects of global warming and the growth of global economics, demand for air conditioners are expected tocontinue growing. To combat further global warming, regulations calling for the use of low GWP refrigerants and standards
for energy conservation are increasingly becoming stricter in each region of the world.
Environmental (Refrigerant) Regulations

trillion

Global Total Demandyen(Our Company Estimates based on Industry Data) Global: Montreal Protocol, Kigali Amendment (‘18)

Reduction of CFC with high global warming potential and conversion to green refrigerants

 Japan: CFC Emission Control Law, GWP regulations for each model

GWP 750 or less (Room air conditioners `18 / Package air conditioners `20)
GWP 1500 or less (Freezer '25)

15.4

 Europe: Start of reduction from '16 by the F gas regulation

Room air conditioners (3 kg or less) need GWP < 750 from `25.

 Emerging Countries : Suspend HFC in '24 and start reduction in' 29

11.5

Energy Conservation Regulations (e.g., Room air conditioners)

CAGR:6%(Year)
CFC: Chloro Fluoro Carbon, APF: Annual Performance Factor
SEER: Seasonal Energy Efficiency Ratio, SCOP: Seasonal Coefficient of Performance
HSPF: Heating Seasonal Performance Factor, CSPF: Cooling Seasonal Performance Factor©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

10

2-2

G r o w t h Ta r g e t
Growth Targets for the Air Conditioning and Refrigeration Systems BusinessContribute to the realization of a safe, secure and comfortable society and a decarbonized society
as a global comprehensive air conditioning and refrigeration manufacturer that provides superior
air conditioning, ventilation technologies and life cycle solutions.

FY2025 Growth Targets
FY2020

FY2025

ActualGrowth target

Net sales

810 billion yen

1,260 billion yen

Operatingmargin9.1%

12% or more

©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric(CAGR: 9%)

11

2-3

Scenario for Growth- Growth Strategy Vision for FY2025 -Advance & Innovation 2025 (AI 25)
Through the "Advance Strategy" to strengthen and expand existing businesses and the "Innovation Strategy"
to create and strengthen new businesses, we will develop life cycle solutions as a comprehensive air
conditioning manufacturer and contribute to the realization of a safe, secure and comfortable society and adecarbonized society.
Sales Target for
FY2025Strengthening our business
infrastructure, looking 10
years ahead

1,260 billion yen

Innovation

FY2020
Sales
Performance

FY2015
Sales
Performance

New Business810 billion yen

Advance

700 billion yen
existing
business

AIAI2020

AI 25

TowardFiscal2020
TowardFY2020growthstrategy
visionGrowthStrategy
visionNext
Business
Next
Business
VisionVisionToward FY2025
Growth Strategy Vision

AI 20©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

Existing
Business

Advance

Advance

FY2015Period ofdevelopment

FY2020

FY2025

FY203012

2-3

Scenario for Growth
Changes Toward Achieving Growth Targets

We aim to achieve our targets by expanding existing and new businesses, centered on heat pump-type
heating and hot water supply systems (ATW), and life cycle solutions.
(billion yen)
1,400

190

1,200

Innovation

260

1,000

Advance810
800 New Business•

Heating and Hot
Water Supply(ATW) Existing Business
•

600

1,260

Direct Expansion
Air Conditioning•

Applied Business•

Ventilation and Air
Purification•

Life cycle
solutions

400
200
0
FY2020©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

ATW: Air to Water

AdvanceInnovation

FY202513

2-3

Scenario for Growth
AI20 Results

・We have been working on the promotion of local production for local consumption and the advancement ofsolutions as our highest priority and have been developing regional production facilities (Turkey and Mexico)
and acquiring missing parts through acquisitions (Delclima).
・Sales expanded to 840 billion yen in FY2019, but due to the effects of COVID-19 and unfavorable exchange
rates, sales did not reach the FY2020 target.
Key Achievements of AI 20
Advance(billion yen)

AI 20 Target
1,000

1,000
8,400
840

800

7,000

700

8,100

810

600

① Strengthen sales channels by establishingregional sales companies② Start of collaboration with Ingersoll Rand
(TRANE) in United States andestablishment of sales joint venture③ Expanding production and supply
systems at Thai plant④ Establishment of a plant for room air
conditioners in Turkey

400

Turkish Plant

Thailand Plant

Innovation

200
0

×

FY2015©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

FY2019FY2020① Through the acquisition of Delclima,
we entered the applied business overseas
14

2-3

Scenario for Growth
Advance & Innovation 2020 to 2025

In AI 25, we will further advance the business results of the strategies promoted in AI 20 and
accelerate the introduction of new products and services tailored to the needs of each region.
AI 20
Advance

Existing
BusinessInnovation

New Business©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

AI 25

Reinforcement oflocal needs

Accelerate the introduction of new products andservices that meet the needs of each region① Regional value chain establishment② Promotion of local production for
local consumption

Further enhancement of energy saving andenvironmentally friendly equipment

Incorporation of applied businessfor comprehensive air conditioning

Promoting life cycle solutions as acomprehensive electronics manufacturer① Expansion of product lineup(direct expansion + water system)and enhancement of control system② Development of circular type ofbusinesses

Strengthen our ability to respond toindividual customer needs andoffer greater proposals

Strengthen proposals for safe, secure, anddecarbonized solutions

Contribute to the realization of a safe,
secure, and comfortable society anda decarbonized society

15

2-4

Strengths of Our Company

Strengths of the Air Conditioning & Refrigeration Business in Life Cycle Solutions
We offer integrated solutions (Life Cycle Solutions) that only we can provide by combining
our extensive lineup of high performance and energy efficient air conditioning andrefrigeration equipment with our extensive building management know-how, centered onelevators and air conditioning equipment, and advanced digital technology.
Core Components

Field Knowledge

Advanced Digital Technology

High-efficiency airConditioning andrefrigeration
Products equippedwith advanced
devices

Operation supportand maintenanceof building
equipment

IoT, AI
technology• High-efficiency compressor• Extensive technical knowledge• Next-generation compressorof the equipment• Next-generation refrigerant-• Energy conservation operation

saving heat exchanger

and maintenance services• New airfoil fan• Maintenance networks• High-efficiency inverter• Air conditioning management• Motor for new elements andmaterials©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric• AI technology• Predictive failure detection bydigital twin technologies• Heterogeneous data linkage of
devices and systems

systems• Building management systems
Maisart: Mitsubishi's AI technology

16

2-5

Core Strategies
Core Strategies for Achieving AI 25 Growth Strategy

Core Strategy 1

Advance

Further improvement of energy saving and environmentally friendly technologies (refrigerantsaving and new refrigerants) to contribute to a decarbonized societyCore Strategy 2

AdvanceInnovation

Strengthen global development capabilities and local production for local consumption toenhance our ability to respond to market needs that differ from region to region

Core Strategy 3

Innovation

Efforts to build and promote life cycle solutions(Strengthening collaboration among inter-businesses as a comprehensive electronics
manufacturer. In addition, consider strategic investments, collaborations, and acquisitions toimprove business infrastructure.)©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

17

2-5

Core Strategy 1
Further Improvement of Energy saving and Environment-friendly Technologies(Refrigerant Conservation and New Refrigerant)

Advance

Energy Saving and Refrigerant Saving
High-Efficiency Heat Exchanger

Energy Saving and Low GWP RefrigerantHigh-efficiency and High-Performance
Compressor

Energy Conservation
High-efficiency Fan Motor

Improved performance of air-side heat exchangers with flat
tubes (approximately 30% more efficient than conventional

A large variety of compressors from rotary to

Our patented proprietary technology

heat exchangers) and reduced refrigerant volume with next-

screw, covering a wide range of capacity and“poki poki motor” contributes to miniaturization

refrigerants

and higher efficiency

generation heat exchangers (20 ~ 30% less thanconventional heat exchangers)

Refrigerant Saving(Chiller Systems)

Increasing competitiveness and lineup of chiller systems©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

Refrigerant Saving (Hybrid VRF)
Awards and Achievements

Combine the advantages of zone-control of direct expansionn air conditioning
and refrigerant saving of water-based air conditioning with a unique branchcontroller.(43% less refrigerant * 1 than conventional systems)*1: our company R 410 A refrigerant, 12 horsepower, 20 indoor units.

18

2-5

Core Strategy 2

AdvanceInnovation

Strengthen Global Development Capabilities
To launch products that meet individual market needs in a timely manner, we have strengthened our global
development capabilities by establishing and reinforcing local R&D centers in Europe, the Americas, China,
and Asia. They are responsible for local marketing, understanding standards and regulatory trends,
identifying necessary technological trends, and searching for partners that can complement our business.

Regional R&D Center

A wide range of climate zones andhigh-end residential use multi air
conditioners
Regional R&D Center

Europe■Cumulative development investment from FY2021 to FY2025
Approximately 200 billion yen, 4% of net sales■Increase in resource input (compared with FY2016 to FY2020)
about 150%
Regional R&D Center

China

Japan: Head of R&D
Regional R&D Center
Asia

Hot water central heating

Further Expansion©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

Cooling under hightemperature and highhumidity conditions,and
requirement of high airflow

UnitedStates・Consolidation and development of technology(energy conservation, solutions and next-generation
refrigerants)

・Discovering local needs, consolidating andsharing knowledge

Ducted central home air
conditioning

New Establishment
19

2-5

Core Strategy 2

AdvanceInnovation

Improving Market Responsiveness through Production in Consumption Areas
・Establish mutually complementary production facilities that can respond to rapid demand and environmental changes.
・Production capacity of room air conditioners will increase at our Turkey factory and ATW production will begin
in Turkey in addition to our UK factory.
・Expanding production capacity in our Mexican factory to serve the North American market.
・In Asia, we are considering establishing a new factory in addition to the current one.
FY 2020 to FY 2025
FY 2020 to FY 2025

FY 2020 to FY 2025

FY 2020 to FY 2025
■Cumulative capital investment from FY2021 to
FY2025 approximately 180 billion yen, 3% of
net sales■Increase in resource input (compared with
FY2016 to FY2020) about 150%

Asia
new location

Production Facilities©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

Local Production Scale

Other

20

2-5

Core Strategy 3

Innovation

Build and Implement Life Cycle Solutions• Expanding from the existing equipment sales business, we will provide comprehensive solutions globally
throughout the product life cycle for a wide range of environments, from residential to commercial use, andprovide new customer values in comfort and energy.
• New measures such as partner cooperation and M&A will be implemented to expand the scope of business.
Innovation

New Proposal

Acquiring Missing Parts(Cooperation/ M&A)

New
Customer
ValuesExisting Business Areas
Equipment
Sales

Innovation
Energy consumption
analysis
Review of the operation
plan

Innovation

Planning
DesignIntegrated management of model selection
and maintenance through BIM

Acquisition of
Maintenance Partners(Cooperation/ M&A)

After-Sales Service and Maintenance

Innovation

Operation

Predictive failure detection
equipment manager©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

construction maintenance company

Automatic adjustment of air
conditioning and ventilation, andenergy saving operation linked withequipment through the coordinationof different types of data.

21

2-5
Innovation

Core Strategy 3
Creating Customer Value through IoT, Cloud and AI Technologies• Accelerate global products development, application development, and service development by utilizing an
integrated IoT common platform with a data integration and analysis platform to create a variety of customer
values in life cycle solutions.
• Contribute to realize Smart Buildings and Smart Cities through collaboration with our building systems business.

INFOPRISM: IoT Platform for Social and Power Infrastructure/Ville-feuille: IoT Platform for Smart City Buildings/Linova: IoT Platform for Home Appliances and Equipment©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

22

2-6

Integrated Solutions

Innovation

Total Solutions for Smart Buildings

Maintenance coordination ofelevators and air conditioners
One-Stop service delivery
Safety andsecurity

Robotic mobility support andother services expansion
Utelise device connection
platform

Efficiency

Linkage of access control systemwith air conditioning and lighting
Provides a comfortable and efficientenvironment

Energy saving
Efficiency

Energy saving
ComfortEnhancement of ZEB
From highly efficient building
operations to added value in
comfort with ZEB+

Visualization, monitoring and control

LinovaIntegrated IoT
ClariSense

Building Life Cycle Solutions (Operational ZEB/Maintenance)

ZEB: Buildings with net or negative annual primary energy consumption due to energy conservation, energy creation and energy storage effects©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

ZEB + (Comfortable Space/Wellness)

23

2-6

Integrated Solutions

Innovation

Safety, Security and Decarbonization Solutions for Housing• Hot water central heating, which is the mainstream in Europe, is shifting from boilers to heat pump systems aspromoted by fossil fuel-free policies.
• Accelerate investment in high priority businesses (Establish local R&D such as the Ecodan Heating Lab. andincrease production capacity)• Propose safe and secure ventilation and air purifying solutions as countermeasures against global pandemics.

Contribution to a decarbonized society

Heat pump type heating and hot water supply
system (ATW)

CO2 emission reduction effect is assumed to be about
50% of boiler.

Energy saving

Providing safe and secure
comfortable spaces

Propose room air conditioners equipped with
Plasma Quad® technology, an anti-virus
technology, and Losnnay for residential use toprovide a safe and secure comfortable space withboth ventilation and energy saving

Safety andsecurity

Linova©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

Safety and Health
Plasma Quad®
technology

Plasma Quad® technology
creates an electric field anddischarge space to inhibit
viruses, bacteria and pollen.

24

2-6

Integrated solutions
Total Solutions for the Data Center

Innovation

Promote integrated solutions through collaboration between
business units to enhance the operational reliability of data
centers while contributing to the realization of energy
conservation and decarbonization.

Energy saving and cooling solutions
A wide range of air conditioning lineups from small
server rooms to large data centers. Support therealization of low PUE with energy saving & use of
low GWP refrigerants.

Energy saving
Comfort
Efficiency

Safety andsecurity

BCP-enabled Solutions

A wide range of equipment lineup and highly
reliable functions that can be used even in
the event of a disaster to support BCP.

Energy saving
Comfort
Efficiency

After-sales and maintenance

Provide 24-hour online remotemonitoring of air conditioning equipment
to help maintain the operating
environment of the data center

Emergency generator
server room power (UPS)©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

25

2-7

Area Strategies

Japan

Continuing business expansion as a comprehensive air
conditioning and refrigeration system manufacturer

400(billion yen)0■Advance ■Innovation

FY2020StatesExpansion of business domain as a leading ductless
manufacturer

250(billion yen)0■Advance ■Innovation

FY2020

FY2025

We will continue to develop the US ducted central air conditioning market byour ductless products. We will also strengthen our response to the wide rangeof North American climates and expand our heat pump business domain.
©Mitsubishi
Electric Corporation
Corporation©Mitsubishi ElectricBusiness expansion through life cycle solutions

400(billion yen)0

FY2025In addition to responding to new needs for safety, health, hygiene, andmonitoring, we will improve profitability through life cycle solutions, and utilizing
the maintenance network of the facility business, which is one of our strengths.

UnitedEurope■Advance ■Innovation

FY2020

FY2025

We will enhance the local development and production capacity of ATW as acontribution to decarbonization. Strategic investments will also be made to
develop the maintenance and turn-key business and build life cycle solutions.

China and Asia

Profitable growth through value-added
improvements

250(billion yen)0■Advance ■Innovation

FY2020

FY2025Strengthen price competitiveness and consider the expansion of supply
capacity including new factories for business expansion and strengthen
initiatives for profitable value-added products such as residential multi-model
products.

26

2-8

Initiatives on Social Challenges

Contributing to a Safe, Secure and Comfortable Society and a Decarbonized Society
We will work to solve social challenges by strengthening the air conditioning business related to three social
challenges: (1)decarbonization, (2) countermeasures against infectious diseases, and (3) digital transformation.
■Materiality to realize
sustainability
Provide solutions
to social challenges
through ourbusiness

Realize a sustainableglobal environment

Strengthen our businessfoundation to enable oursustainable growth

Respect for all people

Mobility

Realize a safe, secure,and comfortable society

Strengthen corporate
governance and complianceon a sustainable basis
Create a sustainability-oriented
corporate culture■Social Challenges
MobilityLife

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
Avoid water shortage/ food shortage etc.
Prepare for natural disasters
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

Infrastructure

Industry

Sustainable society©Mitsubishi
Electric Corporation
Corporation©Mitsubishi Electric

Provide solutions to social challenges Realize a sustainable global environment
Realize a safe, secure, and comfortable society
through our businessLife(1) To contribute to a decarbonized society,
Infrastructure
Industry
we will promote the shift from boilers to heat pump
Highly relevant SDGs
systems (ATW).
We will accelerate investments such as
establishing a local R&D center (establish
Ecodan Heating Lab.) and increasing capacity at production plants.
(2) As a countermeasure against infectious diseases, the demand for highefficiency ventilation and hygienic solutions is increasing due to COVID-19,
and this can be achieved through energy conservation and visualization of
the indoor environment through air conditioning and ventilation using airpurifying function technology, IoT, and AI technology.
(3) In response to the increasing demand for data center cooling due to theprogress of DX, we will promote integrated solutions through collaboration
among business units, and contribute to the realization of energy
conservation and decarbonization while improving the operational reliabilityof data centers.
27

Cautionary Statement

While the statements herein including the forecast of the Mitsubishi Electric Group are based on assumptions the Group considers to bereasonable 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.
5.
6.
7.
8.
9.

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
Changes in the ability to fund raising, especially in Japan
Uncertainties relating to patents, licenses and other intellectual property, including disputes involving patent infringement
New environmental regulations or the arising of environmental issues
Defects in products or services
Litigation and legal proceedings brought and contemplated against the Company or its subsidiaries and affiliates that may adversely affectoperations 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

28