Mitsubishi Electric

Corporate Strategy
May 2023
MITSUBISHI ELECTRIC CORPORATION

Contents
1.

Medium-term Management Plan for FY2026

P3

2.

Business Portfolio Strategy & Improvement of Management Structure

P7

3.

Initiatives for Sustainable GrowthP12

Sustainability Management

P13

Circular Digital-Engineering Company

P14

Enhancement of Innovation & Business Foundationfor Sustainable Growth

P16

Appendix
Outlook and FY2026 Target

P24

Main Non-financial Indicators

P27

Initiatives and External Evaluations

P28

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

2

1
Medium-termManagement Plan
for FY2026(April 2021 ～ March 2026)

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

Achieved the revenue target of ¥5 trillion in FY2023 ahead of schedule
Focus on achieving the operating profit margin(OPM) and ROE targets going forward

FY2023
ActualRevenue
OPM
ROE
Cash
Generation¥5.0trillion
5.2%
6.9%
¥0.9trillion/2years

FY2026
Targets

Revenue¥5.0trillion+
10.0%
10.0%
¥3.4trillion/5years

10.0%

OPM

5.2%
5tn

6.3%

¥5.0tn¥5.2tnFY2023
ActualFY2024
Outlook¥5.0tn+

4tn
3tn
2tn
1tn
0tn

FY2026
Target4

Po l i c y f o r A c h i e v i n g 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

Promote business portfolio strategy and improvement of management structure

GrowthPotential

Business
Competitiveness

CapitalEfficiency

Productivity andProfitability

Varied and selective
investments in Key
Growth Businesses

Strengthen
structure and products/services
for enhancement ofefficiency and profitability

Make decisions
based on ROIC

Promote operation DX andpursue additional value

Structural Reform
Judgementsof Businesses

Withdraw from or sell low
profitable businesses
Accelerate resource shifting5

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

Generate ¥3.4 trillion over a five-year period
Strengthen investment mainly in Key Growth Businesses, and enhance shareholder returns
Cash Generation *1

Capital Allocation

Generate more cash through sale of non-business assets
and reduction of working capital

Increase growth investments and shareholder returns
by generated cash

4tn
3tn

¥2.7trillion¥3.4trillion

Strategic investments （M&As, etc.）¥0.5tn¥0.6tnTotal

2tn
Growthinvestments*2¥2.8tn1tn
0tn

Shareholder returns target

Previous Medium-termManagement Plan
(FY2017-FY2021)

Medium-termManagement Plan
(FY2022-FY2026)¥3.4tn《FY2022-FY2023 actual》
・Share buybacks of approx.
¥50 billion
・Dividends of approx.
¥170 billion《FY2024》
・Decided share buybacks
of up to ¥50billion

Medium-term Management Plan
(FY2022-FY2026)*1 After making adjustments, such as adding R&D expenses to operating cash flow *2 Strategic investments such as M&As, R&D expenses, Capital investment

6

2
Business Portfolio Strategy &Improvement ofManagement Structure

7

Re f o r m o f t h e B u s i n e s s A r e a ( B A ) M a n a g e m e n t St r u c t u r e

2. Business Portfolio Strategy & Improvement ofManagement Structure

BA owners (BAOs) drive business portfolio strategies by enhancing cross-BA businesses, developing new
businesses and improving asset efficiency
Kei Uruma

President & CEO

D irect co ntro lo f the presi den t

Infrastructure BA
Noriyuki Takazawa
SeniorVice PresidentGroup
Public Utility Systems
Energy & Industrial Systems
Defense & Space Systems

Industr y & Mobility BA
Kunihiko Kaga
SeniorVice PresidentLife BA
Tadashi Matsumoto
Executive
Vice President

Group

Group

Factory Automation Systems

Building Systems

Automotive Equipment

Living Environment &Digital Media Equipment

Business Platform BA
Eiichiro Mitani

Semiconductor &DeviceExecutive Officer

Group

Group

Information Systems &Network Service

Semiconductor & Device8

B u s i n e s s Po r t f o l i o St r a t e g y

2. Business Portfolio Strategy & Improvement ofManagement Structure

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*1 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》

Automotive Equipment

Building Systems

Defense & Space Systems

Address expanding market andimprove profitability

Seek collaboration withpartners to pursue synergies
and achieve growth
Automotive Equipment

Low

xEV/ADAS Bus.

Structural reform/
selection and concentration

Create new growth businesses
Public Utility Systems
Energy Systems
Business Platform

Enhance efficiency andcompetitiveness for stable
management

Low

BA/Segment
Life BA

Infrastructure BA

Industry & Mobility BA
Business Platform BA
Semiconductor & Device

Defense & Space Systems*1 A/C : Air Conditioning

Legends

Business《Profitability & Asset efficiency》

High

Key Growth Bus.

Bus. to be reviewed

9

P r o g r e s s o f B u s i n e s s Po r t f o l i o St r a t e g y

2. Business Portfolio Strategy & Improvement ofManagement Structure

Investment in Key Growth Businesses
FA Control Systems

Structural reform of Automotive Equipment Business

A/C & Refrigeration Systems

Establish a new production
base for FA control systemproducts in Owariasahi
district in Aichi

Establish a new factory for
FA control system products
at MEI*1 in India

New production basein Owariasahi district (illustration)

New factory in Pune, India(illustration)

Establish a new factory for
Increase the production
room A/Cs and compressors capacity for A/C equipment
for A/C equipment at MEI*1
at MACT*2 in Turkey
in India

New factory in Chennai, India(illustration)

Exterior view of production basein Turkey

Building Systems

Power Semiconductor Devices

Acquired a Swedish elevator
company Motum AB. Strengthen
the business managementfoundation centered on elevatorand escalator maintenance andmodernization throughout
EuropeEstablish a new SiC*3 8-inch
wafer factory in Shisui districtin Kumamoto
Double*4 the previous
investment plan toapproximately ¥260 billion
from FY2022 to FY2026

Accelerate selection and concentration throughcompany spin off

Decided to spin off the automotive equipment business tostreamline business operations. Promote selection andconcentration in the automotive equipment business,collaboration with partners in the xEV/ADAS business toachieve growth, shifting resources to profitable businesses,
and discontinuation of businesses with issues

Enhance competitiveness of Resilient Businesses

Establish a joint venture of
power generator systems business

Reached a basic agreement with Mitsubishi Heavy
Industries, Ltd. to start detailed studies for businessintegration for power generator systems

Strengthen businesses for renewable energy

New factory in Shisui district(illustration)

Acquired Scibreak AB, a DC circuit breaker developer
in Sweden*1 MEI: Mitsubishi Electric India Pvt. Ltd.
*2 MACT: Mitsubishi Electric Air Conditioning Systems Manufacturing Turkey Joint Stock Company*3 SiC: Silicon Carbide *4 Previously scheduled a cumulative investment of ¥130 billion for the five-year period from FY2022 to FY2026

10

I m p r o v e m e n t o f M a n a g e m e n t St r u c t u r e

2. Business Portfolio Strategy & Improvement ofManagement Structure

Enhance cash generation by improving capital efficiency, productivity and profitability, and judgement ofbusinesses with issues
Capital efficiency

Judgement of businesses with issues

 Make decisions based on ROIC Decided to withdraw from or sell less profitable businesses withrevenue of ¥300 billion level Transform production and logistic system to streamline entire supply
chain and optimize inventory by strengthen relationship between
each process of development, manufacturing and sales Accelerate resource shifting to growth businesses accordingly Proactively sell cross-shareholdings and idle assets

Productivity and profitability
 Promote operation DX to streamline all operation and improve quality.
Strengthen additional value and productivity by enhancing
relationship between each department of development,
manufacturing and sales

Main businesses subject to withdrawing

 Car Multimedia Bus.
 Fuel injector Bus.

 LCD TV Bus.

 LCD Display Bus.

etc.

 Enhance profitability through pursuing additional value of
products/services and price hike according to the rise in materials

113
Initiatives for
Sustainable Growth12Sustainability Management

3. Initiatives for Sustainable Growth

Respond to key societal challenges in five basic areas in order to contribute to sustainability
Key societal challenges

Carbon neutral

Decarbonize society

Circular economy

Build a circular society

Safety/Security
Resilient society

Inclusion

Society that values diversity

Well-being
Vibrant lives

Initiatives for realizing sustainability
Contribution to a sustainable society through business
Decarbonize society with energy management and heat pumps technologies etc.
Build a circular society through innovation in the fields of maintenance/
operation and recycling
Build a resilient society through maintenance/management of infrastructuresand facility automation etc.
Realize vibrant lives of all people through sophisticated use of people flow
data and personal data

Progress in social initiatives
causes positive impacts
on the Company

Realizesustainability
Apply initiatives within
the Company to businessResponsibilities for a sustainable society
Strengthen efforts for cutting greenhouse gas emissions- FY2051: Aim for net zero greenhouse gas emissions in the entire value chain- FY2031: Aim for net zero greenhouse gas emissions from factories and offices
Respect for human rights based on international norms
Realize workplace where diverse and versatile human capital gathers andworks together
Adherence to compliance13

“Circular Digital-Engineering”

3. Initiatives for Sustainable 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

Customers

STEP.3

STEP.1

Integrated Solutions
Systems
Components

Data

STEP.2

Mitsubishi Electric Group
Digital Space

STEP.1

STEP.2

Consolidate diverse data

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

Create new value

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

Create new value through evolving
components, systems and Integrated
Solutions based on potential issues
and needs

14

“Circular Digital-Engineering”

3. Initiatives for Sustainable Growth

Enhance assets in the digital field spanning across a wide range of customers
Enhance assets in the digital field

Materialize and commercialize Integrated Solutions
OT*1 security solution

One-stop service to improve availability/safety of customer OT assets andaddress needs for promoting IoT/DX adoption

Digital Space

DX
Human
CapitalCo-creation

Data analysis andutilization

Foster andacquireDevelop newmarkets

Accelerate by DX Innovation Center

Technological
Development

Enhance AI/
model-based
development

Process
Reforms

E&F*2 solution

Integrate various engineering technologies to optimize energy
management and offer comprehensive facility operation/maintenanceservices

Enhance and evolve components and systems
Systems

Realize secure and highly flexible/expandable systems utilizing various
knowledge of fields and components

Components
DX in production
and operation process

Pursue miniaturization, energy conservation and smartification by fusionof strengthen technology, such as power-electronics, control, etc., andadvanced technology, such as AI, modeling, etc.

*1 OT: Operational Technology *2 E&F: Energy & Facility

15

Enhancement of Innovation and Business Foundation to Achieve Sustainable Growth

3. Initiatives for Sustainable GrowthInnovation
Strategy

Human
CapitalStrategy

RiskManagement

Three Key
Reforms

Promote open innovation with

Grow together with our people

Strategically control

Enhance and develop

creativity

with the power of human capitalin the business environment

for regaining trust

technical capabilities andand building a brighter future

diversifying uncertainties

three key reforms

16

I n n o va t i o n St r a t e g y
Promote open innovation
with technical capabilities and creativity
Build digital platform and space to consolidate various data andknowledge, leveraging our advantage, OT*1 and domain knowledge, andreform to a future-oriented business model
Design the future and provide new value in a timely manner byintegrating knowledge within and outside the Group and through cocreation with customers

3. Initiatives for Sustainable Growth

Recent strategies and initiatives
Build digital platform and space Established the DX Innovation Center Build digital platform that integrates various OT solutions in
a composable form*2, and digital space that fuses data on things, experiences,markets and operation

Co-create with external parties Strengthen business-academia collaboration, starting with the Mitsubishi
Electric and The University of Tokyo Future Design Conference Invested in 4 companies in total, through the ME Innovation Fund*3 (total
investment amount of ¥5.0 billion). Plan to invest in 4 additional companies
in FY2024
 Started with Kao Corporation a sorting trial of plastics, utilizing ouradvanced sorting technologies, through OTB*4 activities. Negotiations areunderway with 43 companies, seeking co-creation in a variety of industries

KPI : Digital technology-related patent applications

Number of patent applications expected in FY2026： 4,000

22%

Ratio of solutions-related patents Current
in all patent applications

Target for FY2026

Ratio of AI-related patents Current
in all patent applications

Target for FY2026

11%30% or more

13% or more

*1 OT: Operational Technology *2 Composable form: A scheme to provide applications flexibly and efficiently according to requirements by combining independent services *3 ME Innovation Fund: A corporate venture capital (CVC) fundestablished jointly with Global Brain Corporation, an independent venture capital *4 Open Technology Bank: Activities to promote co-creation through disclosing technology assets on internal and external websites and vitalizing inter-businesscollaborations within the company and licensing to external parties17

H u m a n C a p i t a l St r a t e g y
Grow together with our people and buildinga brighter future with the power of human capital
Expand and strengthen investment in human capital. Through this initiative,
respect career ownership of each person, in particular, and embrace andcherish diverse and versatile human capital who can think independently,
act proactively, and continuously take on challenges
Promote early appointment and well-planned development of senior
management*1 candidates who will lead the company, based on open talentmanagement by building a global human capital management system

3. Initiatives for Sustainable Growth

Recentstrategies
strategiesandandinitiatives
initiatives
RecentEnhance career ownership that respects self-initiative and challenging spirit Enhance initiatives to increase mobility of human capital and personal careerdevelopment support programs such as in-house job offering/application systems
 Revamp the salary and compensation system into a new, hybrid one by adding the
job-based employment to the existing membership-based model

Diversification of senior management and early appointment

 Promote D&I*2 in management leaders based on succession management utilizing
the global job grading Early appointment of personnel for managerial positions linked with a management
candidate development system and promote recruitment of mid-career people

KPI : Employee engagement survey, D&I of senior management*1 Senior management: Executive Officers and Directors *2 D&I: Diversity and Inclusion

54%

Ratio of employees who areproud and motivated to workfor the Company

Results for 2H FY2023

Ratio of female/non-Japanese
in senior management

Results as of FY2023 end

Investments in human capitaldevelopment and workplace

Results for FY2021 - FY2023

Target for FY2026 (non-consolidated)

3%

Target for FY2031 (non-consolidated)

70%
30%

Approx. ¥12bn

Target for FY2024 - FY2026 (non-consolidated)

Approx.

¥20bn
18

Risk Management
Strategically control diversifying uncertainties
in the business environment
Visualize our global business structure/supply chains and enhancecapability to address increasing risks associated with geopolitics, naturalenvironment, etc.
Work to minimize intrinsic risk through a company-wide control andoperational process standardization/DX

3. Initiatives for Sustainable Growth

Recentstrategies
strategiesandandinitiatives
initiatives
RecentEnhance a company-wide risk management system

 Established the Corporate Information Security Division, the Corporate Economic
Security Division, and the Corporate Risk Management Division under the directcontrol of the president to accumulate know-how and knowledge in risk handling.
Enhance our company-wide capability to address risks

Reinforce supply chains Build a procurement database in the entire company
 Ascertain information on hazards and sanctions in a timely manner; Visualize supply
chains, including the 2nd-tier partners and beyond, with the use of AI

Prevent intrinsic risk

 Draw up a risk map to identify prioritized themes/bases
 Eliminate any chance of improper practices with the use of DX in operational process Prioritize prevention and foster a mindset that encourages employees to learn frommistakes and to create a better company, and thereby regain trust from society

19

T h r e e K e y Re f o r m s - Q u a l i t y A s s u r a n c e Re f o r m s

3. Initiatives for Sustainable Growth

Revising engineering processes
Rebuild organizational capability to provide customers with technically correct explanations, and reduce workloads by having
managers communicate and negotiate with customers. Then create an organizational structure in which there is no incentive toengage in improper quality control practices in the first place

Recent strategies and initiatives
Creation of a manufacturing management environment

 Recognizing design and quality-control resources and loads in order torightsized resources and managerial scopes
 Recognizing and facilitating upgrades of the 4M*1 status atmanufacturing sites through factory health checks(Completed factory health checks at all 27 eligible sites in FY2023)

Data-driven quality control and procedures

 Use statistical quality control (SQC) to conduct design studies andmass-production testing and inspection
To determine methods, selected 41 key control parameters for the
representative products of eligible 10 Works Determined the method for monitoring the process of agreementwith customers on test specifications

Frontloading development and design

 Held 15 seminars to introduce Quick DR as a new design-review (DR)method(80 leaders in departments that introduce the Quick DR participated) Introduced a DR Senior Expert system to foster designers and allocatedexperts to 8 technical fields. Planning to expand to other technicalfields
*1 4M: Man, Machine, Material and Method20

T h r e e K e y Re f o r m s - O r g a n i z a t i o n a l C u l t u r e Re f o r m s

3. Initiatives for Sustainable Growth

Facilitating two-way communication
In accord with the Robust Policies for overarching plan for organizational culture reforms created by the Team Sousei (Creation)company-wide transformation project (kicked off in October 2021), promote initiatives for “Reforms driven by senior
management,” “Behavioral change among managers” and “Enliven communication” in harmony with efforts to renew thehuman capital management system. Cultivate a culture in which people feel comfortable in raising issues with their managers,
and in which people collaborate to solve problems

Recent strategies and initiatives
Reforms driven by senior management

 Provide coaching; active debating at workshops for executives, worksite heads and other senior personnel

 Hold town-hall meetings to facilitate frank discussions with employees
in workplaces; engage in dialogues with employees via internal socialmedia networks

Behavioral change among managers

 Provided a coaching seminar to 50 managers equivalent to worksite head position (result in FY2023)

Enliven communication

 Provided lecture meetings themed on psychological safety to 2,600
persons in managerial positions equivalent to department manager
level across the company (result in FY2023)
 As an opportunity to acquire knowledge and skills to enliven
communication and to achieve a self-initiative organization andcultural reforms, provide one-on-one meeting seminars by external
lecturers (1,500 managers will participate in FY2024)

 Accelerate efforts to make self-initiative people and organization
through rightsizing managerial scopes by appointing deputy
senior managers and team leaders and through delegation of
authorities

21T h r e e K e y Re f o r m s - G o v e r n a n c e Re f o r m s

3. Initiatives for Sustainable Growth

Build a compliance system
focused on prevention

Enhance the Board of Directors’ function
to monitor business execution,
to strengthen governance and vitalizeinternal and external communication

General Shareholders’ Meeting
Reporting toAppointment

Board of Directors(Supervision)
Nomination
Committee*

Directors

Compensation
Committee*

Three Key Reforms
Monitoring Committee

Appointment/Supervisionof Executive Officers
Business Execution/
Authorization Transfer

Auditing
Committee*
Reporting toReporting toReporting to

Executive Officers(Execution)

President & CEO
Executive Officers, etc.

* Three statutory committees

Recent strategies and initiatives
Initiatives for supervision

 Established the Three Key Reforms Monitoring Committee that monitors andsupervises the status of each initiative (December 2022)
 Formulated the Corporate Governance Guidelines （April 2023）
 Evaluate the effectiveness of the Board of Directors using a third-party
organization and pursue sustainable improvements （every year）
 Majority members of the Board of Directors and three statutory committees are
independent outside directors
 Appointed independent outside directors as chairpersons of the Board of
Directors and the three statutory committees
 Determined 7 persons, including 3 women, as candidates for independent outside
directors to be proposed at the annual general shareholders’ meeting scheduled
to be held in June 2023 <1 female director in preceding fiscal year> （March 2023）
 Abolished a senior advisor system. The Board of Directors will involve in thecommission to retired full-time executives （March 2023)

Initiatives for business execution

 Formulate a Compliance Program that embodies internal controls focused on
prevention
 Appointed a female and a non-Japanese as Executive Officer meeting members（April 2023）
 Revised the compensation system for Executive Officers to reflect in incentive
compensation the achievement level of performance indicators as well as that of
non-financial indicators such as on ESG （May 2022）
 Established the Corporate IR and SR Division under the direct control of thepresident to enable centralized and fulfilling dialogue with stakeholders andinformation disclosure （January 2023）
 Advance and develop the BA management structure to steadily push forward withthe “transformation into a ‘Circular Digital-Engineering Company’ （April 2023）

22

Appendix

23

S i n g l e - y e a r O u t l o o k f o r F Y 2 0 2 4 ( C o n s o l i d a t e d Pe r f o r m a n c e )FY2021 Actual

FY2022 Actual

FY2023 Actual

FY2024 Outlook

106JPY/US$ 124JPY/Euro

113JPY/US$ 131JPY/Euro

136JPY/US$ 142JPY/Euro

125JPY/US$ 135JPY/Euro

15.7JPY/CNY

Revenue

Appendix

17.7JPY/CNY

19.7JPY/CNY

18.5JPY/CNY(Billions of JPY)

4,191.4

4,476.7

5,003.6

5,200.0(Billions of JPY)

230.1

252.0

262.3

330.0

(%)

5.5%

5.6%

5.2%

6.3%

Profit before income taxes(Billions of JPY)

258.7

279.6

292.1

355.0

Net profit(Billions of JPY)

193.1

203.4

213.9

260.0

(%)

7.5%

7.1%

6.9%

(Billions of JPY)

2,754.2

2,975.9

3,239.0

(%)

57.4%

58.3%

58.0%

(Billions of JPY)

365.4

329.4

400.7

(Billions of JPY)

248.8

217.1

252.2

(%)

5.2%

4.3%

4.5%

FCF (Free Cash Flow)(Billions of JPY)

365.5

167.5

18.1

Dividend(JPY per share)

36

40

40

(%)

40.0%

41.9%

39.5%

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

24

Outlook for FY2024 and FY2026 target (by segment)

Appendix(Billions of JPY)

FY2021 Actual

FY2022 Actual

FY2023 Actual

FY2024 Outlook

FY2026 Target

106JPY/US$ 124JPY/Euro

113JPY/US$ 131JPY/Euro

136JPY/US$ 142JPY/Euro

125JPY/US$ 135JPY/Euro

125JPY/US$ 135JPY/Euro

15.7JPY/CNY

Revenue

Infrastructure

Operating Profit

Industry & Mobility

Operating Profit(%)
Revenue(%)
RevenueLife

Operating Profit(%)
Revenue

Business Platform

Operating Profit(%)

Semiconductor & Device

Revenue
Operating Profit(%)
Revenue

OthersOperating Profit
(%)

Total

Revenue
Operating Profit(%)

1,021.988.3
8.6%
1,265.8
40.7
3.2%
1,539.5
101.1
6.6%
126.2
5.5
4.4%
205.2
6.2
3.1%
684.7
19.5
2.9%
4,191.4
230.1
5.5%

17.7JPY/CNY

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%

18.5JPY/CNY

1,010.0
21.0
2.1%
1,740.0
144.0
8.3%
2,110.0
153.0
7.3%
140.0
7.0
5.0%
270.0
14.0
5.2%
820.0
24.0
2.9%
5,200.0
330.0
6.3%

18.5JPY/CNY

1 Inter-segment sales are included in the above chart
2 From FY2024, the classification of reportable segment of Business Platform is changed and presented to 2 segments, which are Business Platform and Semiconductor & Device. Also, some businesses that were previously included in the
Information Systems & Network Service of Business Platform are reclassified and presented in Others. Figures above are shown by the new segment classifications (Figures for FY2022 and before are shown for reference.)

1.2tn
7%
1.7tn
14%
2.4tn
11%
0.2tn
9%
0.3tn
12%
―
5tn+
10%

25

Outlook for FY2024 and FY2026 target (by sub-segment)

Appendix(Billions of JPY)

FY2023 Actual

FY2024 Outlook

FY2026 Target

FY2023 Actual

FY2024 Outlook

FY2026 Target

136JPY/US$ 142JPY/Euro

125JPY/US$ 135JPY/Euro

125JPY/US$ 135JPY/Euro

136JPY/US$ 142JPY/Euro

125JPY/US$ 135JPY/Euro

125JPY/US$ 135JPY/Euro

973.1
27.5
2.8%
395.7
13.0
3.3%
331.0
22.0
6.7%
246.3
△7.5
△3.1%
1,660.2
95.9
5.8%
843.8
142.2
16.9%
816.4
△46.2
△5.7%

1,010.0
21.0
2.1%
420.0
11.0
2.6%
320.0
8.0
2.5%
270.0
2.0
0.7%
1,740.0
144.0
8.3%
890.0
143.0
16.1%
850.0
1.0
0.1%

1.2tn

1,947.1
101.2
5.2%
586.0
29.8
5.1%
1,361.1
71.4
5.3%
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%

2,110.0
153.0
7.3%
610.0
43.0
7.0%
1,500.0
110.0
7.3%
140.0
7.0
5.0%
270.0
14.0
5.2%
820.0
24.0
2.9%
5,200.0
330.0
6.3%

2.4tn

19.7JPY/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)

18.5JPY/CNY

19.7JPY/CNY

18.5JPY/CNY

7%
0.4tn
8%
0.4tn
8%
0.4tn
5%
1.7tn
14%
1.0tn
20%
0.7tn
5%

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
(%)

18.5JPY/CNY

18.5JPY/CNY

1 Inter-segment sales are included in the above chart
2 From FY2024, the classification of reportable segment of Business Platform is changed and presented to 2 segments, which are Business Platform and Semiconductor & Device. Also, some businesses that were previously included in the
Information Systems & Network Service of Business Platform are reclassified and presented in Others. Figures above are shown by the new segment classifications (Figures for FY2022 and before are shown for reference.)

11%
0.7tn
10%
1.7tn
11%
0.2tn
9%
0.3tn
12%
ー

5tn+
10%

26

Main Non-financial Indicators
Materiality
Realize a sustainableglobal environment
Realize a safe, secure,and comfortable society

Respect for all people

Targets/Initiative indicators

Create a sustainabilityoriented corporate culture FY2031 : Aim for net zero greenhouse gas emissions from factories and offices

Achieve carbon neutral FY2051 : Aim for net zero greenhouse gas emissions in the entire value chain

Achieve circular economy

 FY2036 : 100% effective use of wasted plastics

Contribution through business activities in the areas ofsafety/security, inclusion, and well-being Provide products, services and solutions that contribute to safety/security, inclusion and well-being

Promote human rights initiatives that are based oninternational norms
Realize workplace where diverse and versatile humancapital gathers and works together
Increase effectiveness of the Board of Directors

Strengthen corporate
governance and complianceon a sustainable basis

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

 FY2031 : Establish human rights initiatives based on international norms
 FY2031 : Realize a responsible supply chain

 FY2026 : Employee engagement score*1 70% or more (non-consolidated)

 FY2031 : Ratio of female/non-Japanese in senior management*2 30% or more (non-consolidated)
 FY2031 : Ratio of female in managerial positions 12% or more (non-consolidated) Maintain the ratio of independent outside director at 50% or more

Prevent recurrence of improper quality control practices

 Promote three key reforms (quality assurance, organizational culture and governance),
monitoring of the three reforms by the Board of Directors, and appropriate information disclosure

Understanding and practices of a compliance motto“Always Act with Integrity”

 Provide compliance education on a continuous basis

Improve the Cybersecurity maturity level FY2029 : Achieve level 2 or higher*3 in the Cybersecurity Maturity Model Certification across theGroup

Understanding and practices of sustainability
by employees

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

Promote communication with stakeholders both insideand outside the company

 Issue the Sustainability Report and the Integrated Report, hold dialogues with experts, and conductsustainability report questionnaires*1 Ratio of employees who respond that they feel that they are proud and motivated to work for the Company in the employee awareness survey*2 Senior management: Executive Officers and Directors *3 Framework for Cybersecurity Maturity Model Certification set forth by the U.S. Department of Defense (CMMC 2.0)27

Initiatives and External Evaluation

Appendix

Participation in initiatives

External Evaluation

Active participation in initiatives both in Japan and abroad

Our corporate activities obtained various external evaluations

Signed the UN Global Compact (May 2018)

CDP *3
Supplier
Engagement
LeaderPRIDE Index
2022

Selected for 3 consecutive
years and sixth times for ourcollaboration with supplierson climate change

Received a gold inrecognition of ourcontinued efforts for LGBTQ

Mitsubishi Electric Group’s greenhouse gas reduction targets
obtained certification from SBTi*1 (January 2020)
Expressed approval of the recommendations by the Task Forceon Climate-related Financial Disclosures (TCFD) (May 2019)
Participated in the GX League (May 2023)

Clarivate
Top 100 Global
Innovator 2023
Selected as one of the top
100 global innovative
companies excellent in
intellectual properties for11th times

Selected as a constituent stock for the following indexes as of May 2023
Joined Japan Clean Ocean Material Alliance (CLOMA) to solve themarine plastic litter problem (April 2023)

 FTSE4Good Index Series

Joined the RBA*2 to establish robust supply chains (February 2022)

 FTSE Blossom Japan Sector Relative Index

To improve objectivity and transparency in addressing complaints about humanrights, joined Japan Center for Engagement and Remedy on Business and Human
Rights(JaCER) as a founding member(regular member) (October 2022)

 MSCI Japan Empowering Women Index (WIN) FTSE Blossom Japan Index

 S&P/JPX Carbon Efficient Index*1 SBTi (Science Based Targets Initiative): An international initiative led by the UN Global Compact(UNGC), World Wide Fund For Nature (WWF), the CDP and World Resources Institute (WRI)*2 RBA (Responsible Business Alliance): An alliance of companies promoting social responsibility in global supply chains *3 CDP: An international NGO that surveys, evaluates and discloses environmental initiatives of corporations and governments

28

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.

29