Mitsubishi Electric Corporate Strategy
MITSUBISHI ELECTRIC CORPORATION
May 29, 2024

Contents

1.

Medium-term Management Plan for FY2026

P3

2.

Initiatives for Higher Growth

P6

3.

Business Portfolio Strategy

P14

4.

Strengthening of Business Foundation

P21

Appendix
Outlook and FY2026 Target

P26

Main Non-financial Indicators

P29

Initiatives and External Evaluations

P30

Note : In this presentation, the fiscal year ending on Mar. 31, 2026 is referred to as FY2026. This fiscal year notation system will apply to all other fiscal periods going forward.

2

Medium-term Management Plan for FY2026

3

F Y 2 0 2 6 F i n a n c i a l Ta r g e t s

1. Medium-term Management Plan for FY2026

Currently the business environment is deteriorating sharply for FA*1 and A/C *2 Systems and it is not likely torecover in the short term. Aim to achieve an OPM of 8% or higher after revising FY2026 financial targets and byreaping benefits of investments and enhancing profitability

FY2024FY2026<Actual>Previous<Targets>New¥5.3trillion¥5.0trillion+¥5.0trillion+

OPM

6.2%

10.0%

8.0%+

ROE

8.2%

10.0%

9.0%

Cash Generation *3¥1.8trillion/¥3.4trillion/¥3.3trillion/

Revenue

3 years

5 years

5 years*1 FA: Factory Automation *2 A/C: Air Conditioning *3 After making adjustments, such as adding R&D expenses to operating cash flow4C a p i t a l A l l o c a t i o n St r a t e g y

1. Medium-term Management Plan for FY2026

The cash generation over a five-year period will be ¥3.3 trillion

Maintain initial plan for cash allocation of ¥3.4 trillion, including shareholder returns target
Cash Generation

4tn

3tn

¥2.7trillion

Capital Allocation
キャピタル・アロケ ー ション¥3.3trillion

Strategic investments (M&As, etc.)¥0.5tnTotal

2tn

Growthinvestments*1¥3.4tn¥0.6tn《FY2022-FY2024 actual》
・Share buybacks of approx.
¥94.8 billion
・Dividends of approx.
¥267.2 billion¥2.8tn1tn

0tn

Shareholder returns target

Previous Medium-termManagement Plan
(FY2017-FY2021)

Medium-term Management
Plan(FY2022-FY2026)

Medium-term Management Plan
(FY2022-FY2026)*1 Strategic investments such as M&As, R&D expenses, capital investment

5Initiatives for Higher Growth6

Ideal form : “Circular Digital-Engineering”

2. Initiatives for Higher Growth

Leverage strong intra-group connections and knowledge sharing in order to consolidate and then analyze
data in the digital space to create new value and contribute to solving key social challenges
Solving social challenges through Circular Digital-Engineering
STEP .4

STEP.1

Customers

Consolidate diverse data

STEP .3

STEP .1

Integrated Solutions
Systems
Components

Data

STEP .2

Mitsubishi Electric Group
Digital Space

STEP.2

Ascertain potential issues
and needs of customers

Consolidate data generated throughusage of our components andsystems by a wide range ofcustomers into a digital space

Analyze the consolidated data via a
digital space and ascertain potential
issues and needs of customers

STEP.4

STEP.3Return value
to a wide range of customers

Return new value to a wider range ofcustomers, and solve social
challenges with customers

Create new value
Create new value through evolving
components, systems and Integrated
Solutions based on potential issues
and needs7Digital Platform “Serendie”

2. Initiatives for Higher Growth

Build Serendie *1 as a digital platform for realizing Circular Digital-Engineering

Serendie“serendipity ”＋”digital engineering”
Create new value for customers and society,and contribute to the realization of a vibrant and sustainable society,leveraging new encounters between data collectedfrom devices, systems and services from varying fields,
and continuous technological innovation and ceaseless creativity.

*1 Trademark pending

8

Digital Platform “Serendie”

2. Initiatives for Higher GrowthSerendie comprises a data analysis system and a Web API integration system

Provide new solutions using Serendie and demonstrating technological strengths and creativity
Components, Systems, Services

Electric power
equipment

Serendie

New Solutions

Provide services
across business fields

Collect data fromcomponents and systems

Elevators
Building
management
Air conditioners
Home products,
housing equipment

Digital Platform Data Analysis System
 Web API Integration System
etc.

Train electric
equipment

Factory automationequipment

Buildings × Air conditioning
× Electric power Smart building solutions(Comfortable spaces, safety/security,
robot delivery)

Transportation × Electric Power Rail solutions(Train operations, power optimization)

Factory automation × Electric power
Improved performanceand functions

Co-creation

 Factory solutions(Carbon neutral, SCM *1 optimization)

Factory automation
digital solutions

Partners*1 SCM: Supply Chain Management

9Serendie-related Businesses

2. Initiatives for Higher GrowthEstablish a new earnings pillar by accelerating initiatives to create new value and expanding profitability for
Serendie-related businesses

23%

OPM

21%

Revenue
１6％¥1.1tnBillions of JPY
1,000
800

¥770bnSerendie-related businesses defined as solutions utilizing
data and components collecting data
Solutions utilizing data

Integrated solutions, solutions utilizing data from Mitsubishi Electric
equipment and systems, remote monitoring/maintenance services
 E&F Solution business* 1¥640bn Remote services for processing equipment and numerical control device

600 Remote monitoring and maintenance services for elevators etc.

400

Components collecting data

Components with functions for collecting/transmitting data
essential for providing solutions utilizing data

2000Serendie-related businesses

FY2024
ActualFY2026
Target

FY2031
Target Sequencers
 CNC *2 etc.

*1 Solutions service solving energy management and facility management issues together *2 CNC: Computerized Numerical Controller

10Strengthening DX Human Capital

2. Initiatives for Higher Growth

Expand DX human capital for the Mitsubishi Electric Group to 20,000 workers through reskilling, M&As, etc.

Define DX skillsets from customer interaction to development, and secure the appropriate human resources
Initiatives to expand DX human capital
FY2024
Actual

FY2031
TargetDX skill set
Understand the skill set of each employee and promote a human resource
strategy for recruitment, education, and career development
Customer interaction

DX marketing

6,500

workers

20,000workers

Customer
relation Reskilling of IT technicians involved in embedded software

Solution creation

Data engineering

UI/UX design *1

DX architecture design

DX engineering

DX quality assurance

development and major systems development

 Expand talent via hiring and M&As
 Provide DX education to all employees

Development*1 UI: User Interface, UX: User eXperience11

Re a l i z e S u s t a i n a b i l i t y

2. Initiatives for Higher GrowthInnovate through Circular Digital-Engineering and grow our business while enriching society and theenvironment. Realize sustainability by accelerating “Trade-On (mutual benefits)” activities

Established Sustainability Innovation Group (Apr. 2024)

Realize Sustainability

Promotion of comprehensive and strategic initiatives beyond
the boundaries of existing businesses and the organization

SocietyandEnvironment“Trade-On (mutual benefits)”

Business Strengthen the business foundation that supports sustainable growth, including
acceleration of initiatives to reduce greenhouse gas emissions leveraging inhouse technology
 Create and strengthen businesses that achieve a balance between solving social
issues and business growth, such as the GIST *1 project, a company-wide initiative
undertaken with both a global and sustainability perspective

GIST Project Key Policy

Circular Digital-Engineering

Striving to benature positive *2
frontrunner*1 GIST: Global Initiative for Sustainable Technology *2 To stop the loss of and restore natural capital

12

Open Innovation

2. Initiatives for Higher Growth

Collaborate with startups, universities and research institutions
Invest in digital, sustainability and other fields
Startup Collaboration

Industr y-Academia-Government Collaboration

Increasing investments in funds established by venture

Investing ¥60 billion in industry-academia-government

capital to ¥15 billion
Areas of investment

 Sustainabil it y, digital, deep tech, etc .

Aims behind increasing investments

 W idely co llect info rmatio n abo ut do mestic and fo reign startups. Seek
co llabo ratio ns with an eye to create new businesse s with startups

Medium/long-term direction

 A ctively engage in M &A s with sights o n business expansio n and new
business entries

R&D (FY2025-FY2031)

University and research institutions

Taiwan’s Industrial Technology Research Institute (ITRI)
Green energy R&D and demonstration experiments (from Apr. 2024)

Waseda University

Basic agreement on a comprehensive collaboration for the realization of a sustainable society (from Nov. 2023)

The University of Tokyo

Future Design Committee by Mitsubishi Electric and the University of Tokyo (from May 2023)

NEDO*1

National research and development agencies

Carbon recycling liquid synthetic fuel manufacturing technology, using CO2 as a raw material*2 (from Oct. 2023)

NICT*3

Beyond 5G wireless communication technology for space-based networks*4 (from Feb. 2023)*1 New Energy and Industrial Technology Development Organization *2 Adopted project: R&D for integrated manufacturing process combining next-generation FT (Fischer-Tropsch) reaction and synthetic liquid fuel
*3 National Institute of Information and Communications Technology *4 Adopted project: Beyond 5G R&D for wireless communication technology utilizing unused frequency bands for space-based networks

13Business Por tfolio Strategy

14

Business Por tfolio Strategy

3. Business Portfolio Strategy

Improve profitability and asset efficiency in each sub-segment
Current status of each sub-segment / Profitability and asset efficiency improvement policy
Major business judgements(withdrawing/selling)High

A/C System & Home Products

Building Systems Bus.

A/C & Refrigeration Systems Bus.

Semiconductor & Device

Factory Automation Systems

Power Semiconductor Devices Bus.

FA Control Systems Bus.

Car Multimedia Bus.
Fuel injector Bus.

Intensive investment
for business growth

LCD TV Bus.
LCD Display Bus.
・・・《 Growth potential》

Building Systems

Defense & Space Systems

Address expanding market andimprove profitability

Create new growth businesses
Public Utility Systems

Low

Automotive Equipment

Structural reform/
selection and concentration

Energy Systems
Business Platform

Enhance efficiency andcompetitiveness for stable
management

Legends

BA/Segment

Infrastructure BA

Life BA

Industry & Mobility BA
Business Platform BA
Semiconductor & Device
Business

Low《Profitability & Asset efficiency》

High

Key Growth Bus.
BA: Business Area

15

Business Por tfolio Strategy

3. Business Portfolio Strategy

Improve profitability and asset efficiency in each sub-segment
Current status of each sub-segment / Profitability and asset efficiency improvement policy
Major business judgements(withdrawing/selling)High

A/C System & Home Products

Building Systems Bus.

A/C & Refrigeration Systems Bus.

Semiconductor & Device

Factory Automation Systems

Power Semiconductor Devices Bus.

FA Control Systems Bus.

A

Defense & Space Systems

Low

Automotive Equipment

CC

Car Multimedia Bus.
Fuel injector Bus.

Intensive investment
for business growth

LCD TV Bus.
LCD Display Bus.
・・・《 Growth potential》

Building Systems

B

Address expanding market andimprove profitability

Structuralreform/
Structuralreform/selectionand concentration
selectionand concentration

B

Create new growth businesses
Public Utility Systems
Energy Systems
Business Platform

Enhance efficiency andcompetitiveness for stable
management

Legends

BA/Segment

Infrastructure BA

Life BA

Industry & Mobility BA
Business Platform BA
Semiconductor & Device
Business

Low《Profitability & Asset efficiency》

High

Key Growth Bus.
BA: Business Area

16

A Key Growth Businesses

3. Business Portfolio Strategy

Initiatives for Business Growth
FA Control Systems

Strengthen businesses in core components and digital fields
 Develop and gradually launch next-generation products (linear transport system) Increasing the production capacity (new factory in Owariasahi in Aichi Prefecture, India,
China, and Vietnam)
 Partner strategy in digital fields (established joint venture with Finnish firm Visual
Components)

A/C & Refrigeration Systems

Response to changing environmental regulations, needs, andmarket conditions in growth markets
 Strengthen local development capabilities(establish R&D centers in Europe, Americas, China, and Thailand) Enhance local production for local consumption (establish new factory in Indiaand strengthen develop/production base for US market)
 Enhance hydronic HVAC in anticipation of tighter refrigerant regulations(acquired French firm AIRCALO)

Building Systems

Expand elevator installation business in mid-range model market andstrengthen maintenance and renewal business for multiple brands
 Strengthen mid-range models (launch regional strategic models in India, Europe, and elsewhere) Expand maintenance and renewal business through M&As(acquired Norwegian firm UNIHEIS) Enhance business foundation for domestic maintenance services (reorganize/consolidate
subsidiaries engaged in maintenance of building facilities)

Power Semiconductor Devices

Enhance the growth investments in SiC*1 at the core

 Starting production of SiC 8-inch wafers at new factory (construction will be completed in
Sep. 2025)
 Stabilize procurement of SiC 8-inch substrates(investment in US firm Coherent’s SiC business) Reach sales channels into the discrete devices market by supplying SiC chips (agreed to
strategic partnership with Dutch firm Nexperia)*1 SiC: Silicon Carbide17

B Portfolio Transformation in the Infrastructure Business Area

3. Business Portfolio Strategy

Transforming operation system, including optimization of production systems for public

utilities/transportation/energy businesses, and allocating resources to defense and solution businesses
Resource allocation to growth fields

Operation system transformation

Strengthen development/production systems for defense business

Build integrated operating system fortransportation business Gradually add approx. 1,000 workers, including resource shifting
within business area

 Consolidated Nagasaki Works and Itami Works, which primarily
manufacture transportation business-related products Utilize business area’s production yard (approx. 4,500m2) andland (approx. 3,000m2) for defense business (gradually complete
construction of 8 new production wings from Apr. 2025)
Source: Ministry of Defense website

Create solution businesses

 In order to expand Multi-region EMS*1 solutions, which support
decarbonization, in-house verification has started, connecting 4 bases
located across 3 electrical power service regions

Multi-region
EMS

Optimize operation system for energy business Established Mitsubishi Generator Co. Ltd., a joint venture with
Mitsubishi Heavy Industries, for rationalizing production andstrengthening competitiveness of the power generator systems.
With the company’s establishment, engineering resources havebeen reallocated For the rapidly growing large EV*2 market, established a Mobility Solution
Business Promotion Office with the aim of creating solutions centered on
EMS and traffic management systems*1 EMS: Energy Management System *2 Bus, trucks, construction machinery, etc.

18

C Strategy for Renewed Growth In the Automotive Equipment Business

3. Business Portfolio Strategy

Promote business reform to achieve regrowth in the automotive equipment business amid a transformational
period for the industrial structure

Mitsubishi Electric Mobility Corporation Commenced Operations (Apr. 2024)
Simplified decision-making process. Developed flexible and speedy business operation system.

Selection and concentration in anticipation of changing environment

Partnership strategy in electrification business

Structural reform Reached a basic agreement to establish a joint venture(JV) company withAISIN CORPORATION as a partner

 Work to promptly discontinue car multimedia

Scheme of the JV

 Clarify exit strategy for ICE*1 business

Mitsubishi Electric/
Mitsubishi Electric Mobility

 Review production system on a global basis, adopt more appropriate size

Strengthen earnings power

AISIN
Part of engineering
human resources

Electrification
business

Focus on equipment/projects expected to be profitable

JV
Electric power steering

Car mechatronics

Alternators

Portfolio optimization to lead to high profit*1 ICE: Internal Combustion Engine

Starters

Maximizing the synergy of Mitsubishi Electric Mobility's power
converters, traction motors and control optimization technologies,
and AISIN's integration technology (vehicle adaptation and system integration)

19

Improvement in Profitability and Capital Efficiency

3. Business Portfolio Strategy

Improve profitability and capital efficiency by judging businesses with issues, reorganizing affiliate companies,
selling cross-shareholdings, etc.

Judgement of businesses with issues

Close examination of cross-shareholdings

Improvements to achieve higher profitability and decisions tosell/withdraw from businesses

Improved asset efficiency by shrinking cross-shareholdings

 Businesses with sales of ¥130 billion achieved OPM of 10%*1

 Decided to sell/withdraw from businesses with sales of ¥390 billion*2
Distribution Transformer Bus.
Car Multimedia Bus.
Fuel Injector Bus.

LCD TV Bus.
LCD Display Bus.
etc.

Reorganization of affiliates
Pushed ahead with bold initiatives and pursued optimal
operating structure Strengthen functions through partnerships with outside parties

 Reorganize functions of affiliate companies and continue slimming down the Group
operating structure, including with elimination and consolidations

 Sold approx. ¥169.3 billion in FY2024(Cumulative sales gain of approx. ¥233.7 billion since FY2021)
 Completed sale of shares in Renesas Electronics Corporation(Sales gain of ¥109.3 billion on non-consolidated basis)

Number of companies held (non-consolidated)
Cumulative sales gains since FY2021 (non-consolidated)
Billions of JPY

200

283

companies

256

companies

220

companies

Approx.

¥233.7bn

Companies

300

169

companies

100
Approx.

0

Approx.

Approx.

¥64.5bn

FY2022

FY2023¥54.1bn150¥7.4bnFY2021

FY20240*1 Total result for the fiscal year prior to the year in which the designation of business with issues was removed *2 Total sales for the fiscal year in which decision was made to sell or withdraw each business20

St r e n g t h e n i n g o f B u s i n e s s F o u n d a t i o n21Human capital strategy

4. Strengthening of Business Foundation

Maximize human capital value through enhanced human capital management and DE&I *1 initiatives
Optimal human capital management to grow both personnel and company

KPIs: Employee engagement survey, investment, DE&I

Realizing proper evaluations after discarding seniority factors

Ratio of employees who are proud and motivated to work for the Company

 Revamp rank, evaluation, and compensation systems, and switch to job-based human capitalmanagement. In addition to promoting employees’ self-autonomous challenge and growth throughproper evaluations, accelerating quick promotions of young, talented workers

Realize a sense of growth among each employee and foster motivation totake on more challenges

 Promote self-directed career development through strengthened career development programs, humanresources investment, and expanded career selection options, including internal or external (nonemployment type) side jobs

Enhance DE&I initiatives
Diversity in senior management

 Promote appointment of non-Japanese and female as management leaders by visualizing senior
management candidates and enhancing succession management utilizing a global job grading system

Gender balance in managerial positions

 Create a workplace where all workers can be active, regardless of gender, including clarifying career paths
for younger workers, visualizing candidates for managerial positions, and offering planned training, etc.

Target for FY2026

Results for2H FY2024(non-consolidated)

70%

55%

Investments in human capital development and workplace
Results for
FY2021 - FY2023

Target for FY2024 - FY2026

Approx.

Approx.

(non-consolidated)

¥12bn

¥20bn

Ratio of female/non-Japanese in senior management*2
Results as of
FY2023 end

3%Results as of
FY2024 end

15%

Target for FY2031(non-consolidated)

30%

Ratio of female in managerial position
Results as of
FY2021 end

1.9%

Results as ofApr. 2024

3.6%

Target for FY2031(non-consolidated)

12%*1 DE&I: Diversity, Equity & Inclusion *2 Executive Officers and Directors

22

Risk management

4. Strengthening of Business Foundation

Promote company-wide risk management designed to achieve a risk-resilient company able to swiftly
respond to new risks in such areas as sustainability and AI
Company-wide risk management

Company-wide Comprehensive Risk Management

Strengthen Response to New Risks

Enhance Response to Intrinsic Risk Focused on Prevention

Risk management structure Establish a structure ensuring swift and flexible responses to new risks (including insustainability and AI), BCP*1 and intrinsic risks

Reinforce supply chains Adopt AI tools to search upstream supply chains and visualize business partner data Develop system for central management of company-wide global procurement data

Foster culture for workers to speak up

 Establish new system rewarding workers who speak up
 Improve effectiveness by reviewing audits/check items in response to risks*1 BCP: Business Continuity Plan

23

Three Key Reforms

4. Strengthening of Business Foundation

Promoting radical company-wide reforms with the monitoring through the committee under the Board of Directors,
incorporating the perspectives of external experts

Quality Assurance Reforms

Realize an organizational structure in which there is no incentive to engage in improper quality control
practices in the first place Creation of a manufacturing management environment through optimization of resources, control span and health diagnoses for plants, etc.
 Revise “Basic Quality Assurance Principles” for further penetration of quality assurance

Organizational Culture Reforms

Governance Reforms

Strengthen activities by job level/occupation/work site in accord with the Robust Policies fororganizational culture reforms
 Accelerate the penetration of culture reforms through opinion exchanges via one-on-one meetings in the workplace, work site visits,
workshops, training for managers, etc.

Aim to further improve management flexibility and transparency, and strengthen
management oversight functions
 Management using a business area structure Evaluate effectiveness of the Board of Directors through a third-party body and pursue its sustainable improvement24Appendix

25

Single-year Outlook for FY2025 (Consolidated Per formance)
FY2022 Actual

FY2023 Actual

FY2024 Actual

FY2025 Outlook

113JPY/US$ 131JPY/Euro

136JPY/US$ 142JPY/Euro

145JPY/US$ 158JPY/Euro

140JPY/US$ 150JPY/Euro

17.7JPY/CNY

Revenue

Appendix

19.7JPY/CNY

20.2JPY/CNY

19.5JPY/CNY(Billions of JPY)

4,476.7

5,003.6

5,257.9

5,300.0(Billions of JPY)

252.0

262.3

328.5

400.0

(%)

5.6%

5.2%

6.2%

7.5%

Profit before income taxes(Billions of JPY)

279.6

292.1

365.8

430.0

Net profit(Billions of JPY)

203.4

213.9

284.9

315.0

(%)

7.1%

6.9%

8.2%

(Billions of JPY)

2,975.9

3,239.0

3,739.3

(%)

58.3%

58.0%

60.6%

(Billions of JPY)

329.4

400.7

394.6

(Billions of JPY)

217.1

252.2

241.2

(%)

4.3%

4.5%

3.9%

FCF (Free Cash Flow)(Billions of JPY)

167.5

18.1

321.3

Dividend(JPY per share)

40

40

50

(%)

41.9%

39.5%

36.8%

Operating profit

ROE (Return On Equity)
Stockholders' Equity
Including lease liabilities

Debt

Excluding lease liabilities

Dividend ratio

1 Net Profit represents Net profit attributable to Mitsubishi Electric Corp. stockholders
2 Debt ratio is calculated based on "Debt excluding lease liabilities" that represents bonds and borrowings

26

Outlook for FY2025 and FY2026 target (by segment)

Appendix(Billions of JPY)

FY2022 Actual

FY2023 Actual

FY2024 Actual

FY2025 Outlook

FY2026 Target

113JPY/US$ 131JPY/Euro

136JPY/US$ 142JPY/Euro

145JPY/US$ 158JPY/Euro

140JPY/US$ 150JPY/Euro

130JPY/US$ 140JPY/Euro

17.7JPY/CNY

Revenue

Infrastructure

Operating Profit(%)

Industry & Mobility

Revenue
Operating Profit(%)
RevenueLife

Operating Profit(%)
Revenue

Business Platform

Operating Profit(%)

Semiconductor & Device

Revenue
Operating Profit(%)
Revenue

OthersOperating Profit
(%)

Total

Revenue
Operating Profit
(%)

946.1
41.5
4.4%
1,480.8
96.4
6.5%
1,673.0
92.6
5.5%
128.3
7.8
6.1%
241.4
16.8
7.0%
751.7
28.4
3.8%
4,476.7
252.0
5.6%

19.7JPY/CNY

973.1
27.5
2.8%
1,660.2
95.9
5.8%
1,947.1
101.2
5.2%
134.7
8.7
6.5%
281.5
29.2
10.4%
850.5
33.4
3.9%
5,003.6
262.3
5.2%

20.2JPY/CNY

1,036.6
31.4
3.0%
1,710.6
120.1
7.0%
2,052.2
145.6
7.1%
142.0
8.3
5.9%
289.8
29.8
10.3%
843.5
31.7
3.8%
5,257.9
328.5
6.2%

19.5JPY/CNY

1,110.0
46.0
4.1%
1,670.0
137.0
8.2%
2,080.0
158.0
7.6%
150.0
10.0
6.7%
290.0
32.0
11.0%
820.0
55.0
6.7%
5,300.0
400.0
7.5%

19.0JPY/CNY

1.2tn
7%
1.7tn
9%
2.3tn
9%
0.2tn
9%
0.3tn
12%
―
5tn+
8%+

1 Inter-segment sales are included in the above chart
2 Some reportable segments have been changed since FY2024, and figures above for FY2023 and earlier have been reclassified. (Figures for FY2022 are shown for reference.)27

Outlook for FY2025 and FY2026 target (by sub-segment)

Appendix(Billions of JPY)

FY2024 Actual

FY2025 Outlook

FY2026 Target

FY2024 Actual

FY2025 Outlook

FY2026 Target

145JPY/US$ 158JPY/Euro

140JPY/US$ 150JPY/Euro

130JPY/US$ 140JPY/Euro

145JPY/US$ 158JPY/Euro

140JPY/US$ 150JPY/Euro

130JPY/US$ 140JPY/Euro

1,036.6
31.4
3.0%
431.3
12.1
2.8%
346.2
18.4
5.3%
258.9
0.8
0.3%
1,710.6
120.1
7.0%
766.4
88.8
11.6%
944.1
31.3
3.3%

1,110.0
46.0
4.1%
450.0
21.0
4.7%
330.0
17.0
5.2%
330.0
8.0
2.4%
1,670.0
137.0
8.2%
770.0
110.0
14.3%
900.0
27.0
3.0%

1.2tn

2,052.2
145.6
7.1%
625.5
56.6
9.1%
1,426.7
89.0
6.2%
142.0
8.3
5.9%
289.8
29.8
10.3%
843.5
31.7
3.8%
5,257.9328.5
6.2%

2,080.0
158.0
7.6%
630.0
52.0
8.3%
1,450.0
106.0
7.3%
150.0
10.0
6.7%
290.0
32.0
11.0%
820.0
55.0
6.7%
5,300.0
400.0
7.5%

2.3tn

20.2JPY/CNY

Revenue

Infrastructure

Operating
Profit(%)

Public Utility
Systems
EnergySystems
Defense &Space
Systems
Industry &Mobility

Revenue
Operating
Profit(%)
Revenue
Operating
Profit(%)
Revenue
Operating
Profit(%)
Revenue
Operating
Profit(%)
Revenue

Factory
Automation
Systems

Operating
ProfitAutomotive
Equipment

Operating
Profit(%)
Revenue(%)(Billions of JPY)

1 Inter-segment sales are included in the above chart

19.5JPY/CNY

20.2JPY/CNY

19.0JPY/CNY

7%
0.4tn
8%
0.4tn
8%
0.4tn
5%
1.7tn
9%
0.9tn
15%
0.8tn
4%

RevenueLife

Operating
Profit(%)

Building
Systems
Air Conditioning
Systems & Home
Products

Revenue
Operating
Profit(%)
Revenue
Operating
Profit(%)
Revenue

Business Platform

Operating
Profit(%)

Semiconductor &DeviceRevenue
Operating
Profit(%)
Revenue

OthersOperating
Profit(%)
Revenue

Total

Operating
Profit
(%)

19.5JPY/CNY

19.0JPY/CNY

9%
0.7tn
10%
1.6tn
9%
0.2tn
9%
0.3tn
12%
ー

5tn+
8%+

28

Main Non-financial Indicators
Materiality
Realize a sustainable global
environment
Realize a safe, secure, andcomfortable society

Respect for all people

Targets/Initiative Indicators
FY2051:
Aim for net zero greenhouse gas emissions for entire
value chain

 FY2031： 【Scope 1*1, 2*2】 Aim for net zero greenhouse gas emissions

Contribute to achieving circular economy

 FY2036： 100% effective use (domestic) of wasted plastics

Realize safety/security, inclusion, and well-being throughbusinesses

 Provide products, services and solutions that contribute to safety/security

Establish human rights initiatives that are based oninternational norms and achieve responsible supply chain

 FY2028： Conduct human rights due diligence across the Group based on international norms

Realize workplace where diverse and versatile humancapital gathers and works together

Three Key Reforms

Strengthen corporate
governance and complianceon a sustainable basis

Create a sustainabilityoriented corporate culture

Appendix

 FY2031： 【Scope 3*3】 Aim for at least 30% net reduction in greenhouse gas emissions versus FY2019

 Provide products, services and solutions that contribute to carbon neutrality

 Provide products, services and solutions that contribute to inclusion and well-being
 FY2028： Reduce negative impact on human rights in supply chain based on the RBA*4 process FY2026： Employee engagement score*5 70% or more (non-consolidated), 60% or more (some domestic affiliatedcompanies)
 FY2031： Ratio of females/non-Japanese in senior management 30% or more (non-consolidated)

 FY2031： Ratio of females in managerial positions 12% or more (non-consolidated) Promote three key reforms (quality assurance, organizational culture and governance), monitoring of the threereforms by the Board of Directors, and appropriate information disclosure

Prevent recurrence of improper quality control
practices Build quality systems for prevention

Increase effectiveness of the Board of Directors

 Maintain the ratio of independent outside directors at 50% or more (non-consolidated)

Understanding and practice of compliance motto“Always Act with Integrity”

 Provide compliance education on a continuous basis

Improve the Cybersecurity maturity level FY2029: Achieve level 2 or higher*6 in the Cybersecurity Maturity Model Certification across the Group

Understanding and practices of sustainability
by employees

 FY2026： Understanding on the operation of business in line with the corporate purpose and goals according to theresults of the employee awareness survey 75% or more (non-consolidated)

Promote communication with stakeholders both insideand outside the company

 Introduce sustainability initiatives through integrated reports, sustainability briefings, online/in-person events andconduct in-house sustainability workshops*1 Direct emissions from use of own fuel *2 Indirect emissions from use of electricity and heat purchased outside the company *3 Indirect emissions from the entire value chain excluding Scope 1, 2 *4 RBA: Responsible Business Alliance (Analliance of companies promoting social responsibility in global supply chains) *5 Ratio of employees who respond that they feel that they are proud and motivated to work for the Company in the employee awareness survey *6 Framework for
Cybersecurity Maturity Model Certification set forth by the U.S. Department of Defense (CMMC 2.0)29

Initiatives and External Evaluations
Participation in initiatives

AppendixExternal Evaluations

Signed the UN Global Compact (May 2018) aimed at promoting
sustainability activities based on international norms
Targets in line with 1.5-degree Centigrade trajectory certified by
Science Based Targets Initiative (SBTi)*1 (Feb. 2024)
Expressed approval of the recommendations by the Task Force on
Climate-related Financial Disclosures (TCFD) (May 2019)
Participated in the GX League (May 2023)

Joined Japan Clean Ocean Material Alliance (CLOMA) to solve themarine plastic litter problem (Apr. 2023)

Joined 24/7 Carbon Free Energy Compact, a United Nations-led initiative for decarbonizing
electricity (Jun. 2023)
Joined the RBA to establish robust supply chains (Feb. 2022)

CDP*2

Named on CDP’s A List, the highest rating, for both climatechange and water security for total six times

PRIDE Index
2023

Received Gold rating for 2nd straight year in recognition of ourcontinued efforts for LGBTQ+

D&I AWARD
2023

Named as Best Workplace, the highest rating for the first time,in recognition of our proactive D&I efforts

Clarivate Top
100 Global Innovator
2024

Selected as one of the top 100 global innovative
companies excellent in intellectual properties for 12thtime

Selected as a constituent stock for the following indexes as of May 2024
 FTSE4Good Index Series

 FTSE Blossom Japan Index

 MSCI Japan Empowering Women Index (WIN) S&P/JPX Carbon Efficient Index

 FTSE Blossom Japan Sector Relative Index*1 An international initiative led by the UN Global Compact(UNGC), World Wide Fund For Nature (WWF), the CDP and World Resources Institute (WRI)*2 An international NGO that surveys, evaluates and discloses environmental initiatives of corporations and governments

30

Cautionary Statement

While the statements herein, including the forecasts regarding the Mitsubishi Electric Group, are based on assumptions considered to be reasonable
under the circumstances on the date of announcement, actual results may differ significantly from forecasts. The main factors materially affecting
the expectations expressed herein include but are not limited to the following:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

Changes in worldwide economic and social conditions, as well as regulations, taxation and other legislation
Changes in foreign currency exchange rates
Changes in stock markets
Changes in the fund-raising environment
Changes in the supply and demand of products, as well as the material procurement environment
Establishment of important patents, status of significant licenses and disputes related to key patents
Litigation and other legal proceedings
Issues related to quality and defects in products or services
Laws, regulations and issues related to the global environment, especially responses to climate change
Laws, regulations and issues related to human rights
Radical technological innovation, as well as the development, manufacturing and time-to-market of products using new technology
Business restructuring
Information security incidents
Large-scale disasters, including earthquakes, tsunamis, typhoons, volcanic eruptions and fires
Social, economic and political upheaval due to heightened geopolitical risks, war, conflict, terrorism or other factors
Social, economic and political upheaval due to pandemics or other factors
Important matters related to Mitsubishi Electric Corporation’s directors and executive officers, major shareholders, affiliated companies andother stakeholders* This document has been translated from Japanese original for reference purpose only.

In the event of any discrepancy between this document and the Japanese original, the original shall prevail.