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TRANSCRIPT
Corporate Strategy
November 2013
1 Management Policy:
Contents6 Research & Development:1. Management Policy:
Balanced Corporate Management
6. Research & Development: Design Life and Society in the FutureManagement
2. Forecast for FY2013
the Future
7. Strengthening Management Foundation3. Essential Growth Strategies
4 Strengthening the Global
Foundation
8. Corporate Mission4. Strengthening the Global Strategy
5 M k St B i Notes:
9. Corporate Governance
5. Make Strong Businesses Stronger Globally
Notes:FY2008: April 1, 2008 – March 31, 2009FY2009: April 1, 2009 – March 31, 2010FY2010: April 1, 2010 – March 31, 2011FY2011: April 1, 2011 – March 31, 2012
1
p , ,FY2012: April 1, 2012 – March 31, 2013FY2013: April 1, 2013 – March 31, 2014
1 M t P li B l d C t M t
Robust Management Foundation and Two Frameworks for
1. Management Policy: Balanced Corporate ManagementIncrease Corporate Value
Robust Management Foundation and Sustainable Growth Implementing Balanced Corporate
Management
GrowthGrowthTwo FrontTwo Front--lineslines
“Manufacturing Craftsmanship” (Quality, costs, manufacturing technologies, R&D IP)Growth strategies R&D, IP)
Sales and services Growth strategies Victory (VI) & Advance (AD)Agility to changes in the business environment
SoundnessSoundnessFour SynergisticFour Synergistic
Corporate NetworksCorporate Networks
P d ti d S lIntegration synergies between
Persistently strengthening the Financial standing
Profitability,Efficiency
Production and SalesBusiness divisionsBusiness divisions and CorporateGl b l
y g gbusiness foundation:・“Manufacturing Craftsmanship”・Sales and services・Human resources
Financial standingEthics and compliance CSR
2
Global
1 M t P li B l d C t M t
Bolster Growth StrategiesBolster Growth StrategiesManagement Targets to be Continuously d St bl A hi d
1. Management Policy: Balanced Corporate ManagementIncrease Corporate Value GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiencyBolster Growth StrategiesBolster Growth Strategies
Creation of new strong businessCreation of new strong businessRecuperation of net sales above 4,000 Recuperation of net sales above 4,000 billion yenbillion yenROE: 10% or more
and Stably Achieved
OPM: 5% or morebillion yenbillion yenAchieve overseas sales ratio: 40%Achieve overseas sales ratio: 40%
Aiming to become a global leading green
ROE: 10% or more
(Debt Ratio, %)( OPM, %) (ROE, %)
Debt Ratio: 15% or lessAiming to become a global, leading green
company that contributes to the creation of a prosperous society
15
20 0
5
10
10
E i t S i l I f t t
10
10
15
20
5
Environment and Energy
Social Infrastructure Systems
Global
OPM
4.3%15.9%
TargetLevel
Debt Ratio
0
520
25
300
Development
ROE
5.7%
3
08 09 10 11 12 13 Pursue ever Higher Growth(FY)
2 F t f FY2013GrowthGrowth
3004,000(Net Sales:Billions of Yen) (Operating Income: Billions of Yen)Operating Income (Right)
3 639 43,950.0
3 665 1 3 645 3
2. Forecast for FY2013SoundnessSoundnessProfitability
EfficiencyProfitabilityEfficiency
200
300
3,000
4,000 3,639.4
225.4
3,665.1
233.73,353.2
220.0
3,645.3
Electronic Devices
Home Appliances
3,567.1
1001,000
2,000139.7
94.3
IndustrialAutomationSystems
Information &CommunicationSystems 152.0
00Net Sales (Left)
Energy &ElectricSystems
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
F t ForecastActual
102JPY/USD147JPY/EUR
Actual92JPY/USD
130JPY/EUR
Actual86JPY/USD
113JPY/EUR
Actual79JPY/USD
110JPY/EUR
Actual83JPY/USD
106JPY/EUR
Forecast(Apr 2013)95JPY/USD
120JPY/EUR
Forecast(Oct 2013)
[2nd half forecast]95JPY/USD
125JPY/EUR
6 MonthsForecast
6 MonthsResult
98JPY/USD128JPY/EUR
Net Sales 3,665.1 3,353.2 3,645.3 3,639.4 3,567.1 1,780.0 3,810.0 1,811.8 3,950.0Operating
Income 139.7 94.3 233.7 225.4 152.0 70.0 205.0 79.7 220.0(Operating Income
Ratio) 3.8% 2.8% 6.4% 6.2% 4.3% 3.9% 5.4% 4.4% 5.6%Income before 43 9 64 2 210 2 224 0 65 1 60 0 185 0 83 4 200 0
44
Income Taxes 43.9 64.2 210.2 224.0 65.1 60.0 185.0 83.4 200.0
Net Income 12.1 28.2 124.5 112.0 69.5 35.0 110.0 48.3 120.0
GrowthGrowth2 F t f FY2013 S t F t
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013(Billions of Yen)
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
2. Forecast for FY2013: Segment Forecast
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Actual102JPY/USD147JPY/EUR
Actual92JPY/USD130JPY/EUR
Actual86JPY/USD113JPY/EUR
Actual79JPY/USD110JPY/EUR
Actual83JPY/USD106JPY/EUR
Forecast(Apr 2013)95JPY/USD120JPY/EUR
Forecast(Oct 2013)
[2nd half forecast]95JPY/USD147JPY/EUR 130JPY/EUR 113JPY/EUR 110JPY/EUR 106JPY/EUR 120JPY/EUR 125JPY/EUR
Energy & Electric Systems
Net Sales 1,043.6 1,039.6 1,027.7 1,027.1 1,058.1 1,100.0 1,160.0Operating
Income/Loss 74.5 74.7 83.0 84.9 85.1 78.0 80.0Industrial Net Sales 851 6 733 1 927 0 978 3 927 8 990 0 1 040 0
Automation Systems
Net Sales 851.6 733.1 927.0 978.3 927.8 990.0 1,040.0Operating
Income/Loss 49.9 26.1 100.0 101.1 60.5 78.0 87.0Information &
Communication Systems
Net Sales 582.1 526.1 487.9 516.3 522.4 550.0 550.0Operating
Income/Loss 24.8 18.6 13.7 21.3 1.5 18.0 18.0Systems Income/Loss 24.8 18.6 13.7 21.3 1.5 18.0 18.0ElectronicDevices
Net Sales 166.9 138.9 175.9 200.7 164.0 210.0 200.0Operating
Income/Loss -29.8 -7.1 5.9 3.5 -5.5 6.0 8.0Home Net Sales 915.7 824.6 924.4 849.2 821.2 890.0 910.0
Appliances Operating Income/Loss 34.7 4.8 42.0 22.3 19.3 36.0 38.0
OthersNet Sales 596.0 552.9 609.4 611.6 590.3 630.0 650.0Operating
Income/Loss 12.3 3.2 14.4 20.3 18.7 17.0 17.0
5
TotalNet Sales 3,665.1 3,353.2 3,645.3 3,639.4 3,567.1 3,810.0 3,950.0Operating
Income/Loss 139.7 94.3 233.7 225.4 152.0 205.0 220.0* Inter-segment sales are included in the above chart.
3 E ti l G th St t i GrowthGrowth
IndustrialIndustrial Information &Information &
3. Essential Growth Strategies GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency(1)VI Growth Strategy: Make strong businesses stronger
Home AppliancesHome AppliancesEnergy & ElectricEnergy & Electric Industrial AutomationIndustrial
AutomationInformation &
Communication Information &
Communication Electronic DevicesElectronic Devices
Power Systems SatellitesSatellites Air Conditioning Air Conditioning and Housing Productsand Housing Products
Power DevicesPower Devices
Transportation Systems
Factory Automation
ProductsOptical Broadband Optical Broadband
Access SystemsAccess Systems
Device Technology
Device Technology
Next-generation SiC inverter for railcars
Air conditioners with
Ex.
Elevators and Escalators
P d t titi th h t h l i l
Network SecurityNetwork SecuritySystemsSystems
Power Electronics Technology
Power Electronics Technology
with SiC inverters
Motor systems with built-in SiC
inverters
Automotive EquipmentAutomotive Equipment
Product competitiveness through technological synergyCreation of new strong businesses
Energy TechnologyEnergy Technology Media TechnologyMedia Technology Display & Imaging Technology
Display & Imaging Technology
Information TechnologyInformation Technology
Optical & Electrical Wave Technology
Optical & Electrical Wave Technology
Communications Technology
Communications Technology
Power Electronics T h l
Power Electronics T h l Electric TechnologyElectric Technology Mechanical TechnologyMechanical Technology Device TechnologyDevice Technology Materials TechnologyMaterials Technology Sensor TechnologySensor Technologyol
ogy
orm
s
6EMC: Electro-Magnetic Compatibility
TechnologyTechnology Electric TechnologyElectric Technology Mechanical TechnologyMechanical Technology Device TechnologyDevice Technology Materials TechnologyMaterials Technology Sensor TechnologySensor Technology
Quality Engineering, EMC Technology, Simulation Technology, Systemization Technology, Design Technology, Intellectual Property Rights, StandardizationQuality Engineering, EMC Technology, Simulation Technology, Systemization Technology, Design Technology, Intellectual Property Rights, Standardization
Tech
nopl
atfo
GrowthGrowth
3 E ti l G th St t i
Develop wide-ranging applications by maximizing device functionality
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency3. Essential Growth Strategies
(2)Creation of New Strong Businesses: SiC Power Devices - Applicationp g g pp y g y
Multi-Axial Integrated Drive Unit(commercialized in Dec. 2012)
Railcar propulsion system (DC1,500V)(commercialized in Nov. 2012)
Electricity consumption reduced by approx 30% compared with the High-speed switching operation
increases spindle motor speed up to twice that of its previous modelReduced power loss in drive unit results in 15% higher torque for
i dl t th th t f it i
approx. 30% compared with the conventional systemsReduced dimension and weight of the inverter: volume reduced by approx. 40%, mass reduced to approx. half 10000
100000
)
Electric power
Rolling stockspindle motors than that of its previous model
Elevator Traffic Control E i t
10
100
1000
apac
ity (k
VA)
Automobiles
Industry・Renewable energy
SiC Inverter for SiC Inverter for Rail CarsRail Cars
High EfficientHigh EfficientEnclosed TypeEnclosed TypeTraction MotorTraction Motor
SiC Auxiliary Power Supply Systems for Railcars
(Commercialized in Mar. 2013)
EquipmentIndustry’s first use of the full SiC Power
Module for high-speed elevators (currently under field test)
% f
0.1
1
Ca
10000100010010
Home appliances
Voltage (V)
30% less power loss20% smallerApproximately 15% lighterTransfer noise reduced by 4 dB owing to 35% improvement in the
65% reduction of power loss with the power moduleDownsize the dimension of the traffic control unit, both in terms of the volume and the ground surface in which it is
7
owing to 35% improvement in the distortion rate of output voltage waveforms
ground surface in which it is to be installed
GrowthGrowth
3 E ti l G th St t i(3)AD Growth Strategy:
Reinforce solutions business centered on strong businessesExpand business areasExpand business areas
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
3. Essential Growth Strategies
Best of the IT for augmenting competitiveness of the productsIntensify cross-business
Expand business areasExpand business areasSmart GridSmart Grid
Competitive Advantages Competitive Advantages of Mitsubishi Electricof Mitsubishi Electric
Energy Energy Conservation Conservation
S l tiS l ti
ycollaborationAlliance with partners
Strong businesses
SolutionsSolutionsTotal SecurityTotal Security
SolutionsSolutions
and rich experience
SmartSmartCommunityCommunity
Security technologyUtilize the space infrastructure Cyber security
Cryptography/verificationInformation security
Safety and risk managementSocial servicesCommunication
8
CommunicationImagingImaging
SolutionsSolutions
3 E ti l G th St t i GrowthGrowth
(4)Mitsubishi Electric Smart Community SolutionCreate sustainable society by applying proven energy platform technology with ICT
3. Essential Growth Strategies GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
y y pp y g p gy p gy
xEMS
MeteorologicalDisaster
Prevention
Energy SolutionEnergy SolutionLife/BusinessLife/BusinessSupport SolutionSupport Solution
TotalS it Healthcare Po er demand/s ppl
EnergySaving
PVPVHydro
Renewable
CEMSBEMS
HEMS
CEMS
Positioning
Meteorological Prevention
Imaging ITS
Security Healthcare Power demand/supply
Self-sustainabilityin Disaster
CGSEVPV
PV
Geothermal
CEMSFEMS
HEMS
HEMS ICT platformICT platform
BEMS(Commercial, Residential)
Water treatmentWater treatment
AirportAirport
RoadRoad
CGS
Residential ApartmentResidential Apartment
PV
ResidentialResidentialdistrictdistrict
CommunityCommunity
PV
CGS REMS TEMS SEMS
Harmonize distributed power generationHarmonize distributed power generationand transmission and transmission gridgrid
RailwayRailwayIndustrial districtIndustrial district
Residential ApartmentResidential Apartment
Next Generation PlatformNext Generation Platformof Energy Supplyof Energy Supply
G id PG id P RR
9
Grid Power Grid Power ResourcesResources
* xEMS: Energy Management System (B: Building, C: Community, F: Factory, H: Home, R: Railway, S: Station, T: Train), CGS: Co-Generation System
3 E ti l G th St t i(5)xEMS
Realize optimal energy control integrating Mitsubishi Electric’s expertise in all areas, from power systems to consumer electronics
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
3. Essential Growth Strategies
from power systems to consumer electronics
Keihanna Science City Pilot ProjectTotal management of energy consumption within the city; Present an optimal plan for energy use
ithin the cit
Open integrated management system for building facilities
Facima BA-system touch CEMSCEMS
BEMSBEMS
within the cityStabilize power supply in the city by demand response in connection with the supply side of power systemFeasibility study on an optimization model of a community energy utilization
Compact; Easy to operate on touch screenDisplay graphs of actual energy consumption; Enable demand control for each facilityCollect and analyze data by
CEMSCEMS
Smart MeterTelecommunication function
Feasibility study on energy local supply-consumption model; utilizing geothermal and other renewable energies
(Kazuno City, Akita Pref.)Establish a local supply-consumption model at normalImplement demand response at the time of shortfall in power
l d ti f l t i ti
Collect and analyze data by utilizing CLOUD-based technology
CommercialCommercial
HEMSHEMS
Function of real-time reading and measuring of the electric energy consumption from remote place, as well as control over the power units
ResidentialResidential supply and creation of relevant incentiveSelf-sufficient power supply utilizing the existing power network at the time of disaster
FEMSFEMSMITSUBISHI HEMS
Equipped with industry-first automated energy-conserving functions, and industry-highest
b f li k ith h h ldSmart Community experiment conducted in
an Indonesian industry complex
Simultaneous pursuit of the improvement of production efficiency and energy efficiency
10* xEMS: Energy Management System (B: Building, C: Community, F: Factory, H: Home), DSM: Demand Side Management System
number of links with house hold appliances and other home equipment
an Indonesian industry complexRealize optimal power saving by coordination of
DSM with FEMS
3 E ti l G th St t i GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
3. Essential Growth Strategies(6)Integrated Solutions:
Railway integrated energy-environmental solutionsREMS:Railroad Energy Management Systems
In addition to the conventional surveillance systems on electricity consumption in train operations, a total solution systems having control over energy consumption all alongside the railroad and utilization of regenerative electricity throughout the integral railway
SEMS:Station Energy Management SystemsBy visualizing power consumption, encourage measures for reducing CO2 emissionOptimal energy control so as to keep both passenger service level and CO2 reduction compatibleRealize a next generation, eco-friendly station equipped with “energy creative” and “energy storage” functionsGround Control Center
Optimize power distribution management coordinating multiple stationsBased on the position and the driving conditions of each train, implement a real time control over voltage output from the substation enable not to limit regenerationThe power storage systems and regenerative inverter, which enable effective utilization of regenerative electricity
Visualization-station
regenerative electricityEnergy control room at a station Hub-station
Railway SubstationsHeadquarters, Branch OfficesVisualization
-total consumption Reduce CO2 emission, utilization of natural energies,
harmonization with the Smart Community
Total configuration control of a train by train information management systems
FEMS:Factory Energy Management SystemsVisualize the production volume and energy consumption based on per unit cost controlSupport a frontline-oriented efficiency improvement utilizing the ICT
TEMS:Train Energy Management Systems
g yHigher efficiency of electric equipmentEffective utilization of regenerative electricity
Introduce a large scale photovoltaic systems utilizing space in the sites
Visualization-train
Visualization-depot
11
Train information management systems with vehicle energy management functions DepotIntegrated facility control systems
at depot
* xEMS: Energy Management System (F: Factory, R: Railway, S: Station, T: Train)
4 St th i th Gl b l St t
Harness collective strengths between operating bases d b t b iU d t th t t
Strengthen Regional Strategy in China
4. Strengthening the Global Strategy(1)Regional Strategy: China
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
and between businessesUpgrade, strengthen, restructure business promotion systemsBolster sales infrastructure systems Augment risk management system Reinforce partnerships with leading local corporate groups
Mitsubishi Electric Power & Electrical Mitsubishi Electric Power & Electrical Infrastructure Systems (Beijing)Infrastructure Systems (Beijing)
Mitsubishi Electric Power & Electrical Mitsubishi Electric Power & Electrical Infrastructure Systems (Beijing)Infrastructure Systems (Beijing)
Establishment of power systems
Principal Business Bases
ybusiness company (Beijing)
Commenced operation in Dec.2013• Sales, engineering and related services• Strengthen prowess in presenting customized
proposal, Expand maintenance service network
• Strengthen collaboration with partners to l l lli
200
300(Billions of Yen)
ElectronicDevices
HomeAppliances
Others
Sales in China
local alliances• Increase sales volume in the Chinese market:
target sales in the FY2017, 30 billion yen
0
100
08 09 10 11 12Note: Includes Taiwan (excludes equity-method companies)
(FY)
Energy & Electric
IndustrialAutomation
Digital instrumentation control system in Ningde Nuclear Power Plant
(Commenced operation in Apr. 2013)The first system designed by a Japan-China
technical collaborationJointly executed contract with local partner,
Hefei Hefei KinghomeKinghome Mitsubishi Electric Mitsubishi Electric Home Appliances Technology Home Appliances Technology
DevelopmentDevelopment
Hefei Hefei KinghomeKinghome Mitsubishi Electric Mitsubishi Electric Home Appliances Technology Home Appliances Technology
DevelopmentDevelopmentEstablishment of a joint venture for
R&D for advanced high-capacity refrigerators (Hefei)
Commenced operation in Aug 2013Jo y e ecu ed co ac oca pa e ,CTEC14 out of 16 total CPR1000 pressurized water
reactors
Commenced operation in Aug.2013• A joint venture established with Hefei
Kinghome Electrical Co., Ltd.• Expand business based on advantageous
and unique technologies for refrigerators, e.g. energy conservation and higher capacity
• Agile response to consumer requirements in
:Common areas:Energy and electric:Industrial automation:Information and communication
:Electronic devices
Central Control RoomCentral Control RoomDigital instrumentation Digital instrumentation ccontrol ontrol system equipmentsystem equipment
* CTEC: China Techenergy Co., LTD, CPR1000: the first Chinese designed pressurized water reactor, output of 1,000MW
g p qthe Chinese market
:Electronic devices:Home appliances
12
4 St th i th Gl b l St t
E t bli h k ti t t d l &
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
4. Strengthening the Global Strategy(2)Regional Strategy: Thailand
100
Further strengthen global supply bases
Principal Business Bases Establish marketing strategy and sales & distribution structure responsive to
demand in the growing markets
Elevators & Escalators: Mitsubishi Elevator Asia
(Billions of Yen) Sales in Thailand
0
50
100
09 10 11 12Mitsubishi Elevator AsiaMitsubishi Elevator Asia
Mitsubishi Elevator AsiaDevelopment and production of globally
standardized models Supply of core components (traction
machines and other mechanical components)
Increase production capacityEnergy & electric
Industrial automation
Home appliances
09 10 11 12Mitsubishi Elevator AsiaMitsubishi Elevator Asia
Mitsubishi ElectricMitsubishi ElectricThai AutoThai Auto--PartsParts
p p y
Automotive Equipment: Mitsubishi Electric Thai Auto-PartsThe largest production base for automotive
products within ASEANFunction as the auxiliary supply base to
European and US markets: cost
Plan and implement regional strategiesMitsubishi Electric Asia (Thailand)Marketing and sales assistanceShared administrative service provided locally
to Group companies
(FY)Mitsubishi ElectricMitsubishi ElectricConsumer ProductsConsumer Products
European and US markets: cost competitiveness and advantage of various FTAs
Air Conditioning Systems: Mitsubishi Electric Consumer ProductsSiam Compressor IndustrySupply key components outside ASEAN:
p p
Air Conditioning Systems: Mitsubishi Electric Consumer ProductsProduct development responsive to local
needsExpand PAC, taking advantage of its
predominant position as the top-share player in the market of RAC
Mitsubishi ElectricMitsubishi ElectricFactory Automation (Thailand)Factory Automation (Thailand)
Mitsubishi ElectricMitsubishi ElectricFactory Automation (Thailand)Factory Automation (Thailand)
:Common areas:Energy & electric:Industrial
Supply key components outside ASEAN: shipments to Europe and U.S. comprise approx. 50%Promote local production and procurement
by transferring manufacture of globally marketable productsEnhance manufacturing capacity, establish
i t t d l i ti t
in the market of RACAccelerate expansion of the sales
infrastructures
Factory Automation Systems: Mitsubishi Electric Automation (Thailand) Mitsubishi Electric Factory Automation (Thailand)Expand distribution network and enhance
Launched strengthened FA Business in Thailand (Bangkok)Commenced operation in Sept. 2013• Acquisition of F.A.TECH and
integration into local distribution affiliate, Mitsubishi Electric Factory Automation (Thailand) Co., Ltd.
13
automation:Home appliance
an integrated logistics systems Expand distribution network and enhance market shareIntensify efforts to be awarded as the
contractor in social infrastructure projects
• Sales and servicing for FA products and CNCs
4 St th i th Gl b l St t4. Strengthening the Global Strategy(3)Deploy in the emerging markets
Strengthen cross-business cooperation for further growth and marketing efforts to get new business opportunities
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
MexicoMexicoTurkeyTurkeyCommenced FA center operation,
in Oct. 2013 (İstanbul)• Technical consultancy services for
FA products, training and educational services for local
efforts to get new business opportunitiesAcquisition of Genel Teknik
Sistemler Sanayi ve Ticaret A.Ş.,Mar. 2013 (İstanbul)
• Sales, distribution, service and i i f FA
Commenced FA center operation, in Apr. 2013
• Technical consultancy services for FA products, training and educational services for local
Established automotive equipment manufacturing and sales company
(Querétaro de Arteaga)Commenced operation in Oct. 2014
S
Commenced producing Cooling& Heating Products,
in Oct. 2013• Air conditioning products for
commercial use: indooreducational services for local engineers
• Products: PLCs, inverters, servo and human-machine interface, CNCs
• Languages: Japanese, Turkish, English
system integration of FA system products and CNCs
• Expand business in the Turkish market
• Explore new markets in the Central Asia
educational services for local engineers
• Products: PLCs, inverters,servo and human-machine interface
• Languages:Japanese, Spanish, English
• Alternators, Starters etc.• Enhance local production capacity
in the Pan-American regions• Utilize the company for setting up
the business continuity plan in the Pan-American regions
commercial use: indoor units
• Establish a coherent production structure in the North America: R&D, production, distribution
BrazilBrazilVietnamVietnam IndonesiaIndonesiaLaunched a new local business structure for elevator/escalator
Mitsubishi Elevator Vietnam(Hô Chi Minh)
• Converted into a subsidiary by means of share purchase as from Sep. 2013
Commenced FA center operation, in Aug. 2013 (Hô Chi Minh, Ha Nôi)
• Technical consultancy services for FA products, training and educational services for local engineers
• Products: PLCs, inverters, servo and human-machine interface, CNCs
Established new company for locally developing elevator/escalator
Melco Elevadores do Brazil (Guaíba)• Converted into a subsidiary by means
of share purchase as from Sep. 2013• Sales, fabrication, installation,
maintenance of elevators/escalators
Commenced operation of new sales & distribution company,
in Jun. 2013 (Jakarta)• RAC/PAC air conditioning systems• Home appliances such as refrigerator• Sales, distribution and technical
support for FA system products• Reinforce business and operation
in sales, installation, and maintenance
• Languages: Vietnamese, English, Japanese (Ha Nôi)
maintenance of elevators/escalators• Entry into the largest market in South
America
14
4 St th i th Gl b l St t
Strong market development based on t b i
Strengthen an integrated Constantly elaborate the l l b i b
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
4. Strengthening the Global Strategy(4)Deploy in the emerging markets: India
strong businessesbusiness prowess within markets, in which demands
are expanding for “Environment & Energy
Saving”, “Security & Safety”, d “S i l I f t t
Mitsubishi Elevator ETA IndiaMitsubishi Elevator ETA IndiaMitsubishi Elevator ETA IndiaMitsubishi Elevator ETA India
local business bases
Establishment of a JV for Elevators & E l t B i J 2013
Principal Business Bases
Strengthen links with India-based J i
and “Social Infrastructure Development”
Strengthen Regional Strategy in India
& Escalators Business, Jan. 2013(Chennaī)
• Strengthen sales taskforce and expand business volume
• Strengthen installation and maintenance: realize better quality,reliability and customer satisfactionJapanese companies
FA systems businessAutomotive equipment business
Expand business through local capital and deeper partnershipsPower systems business
Mitsubishi Electric IndiaMitsubishi Electric IndiaMitsubishi Electric IndiaMitsubishi Electric India
reliability and customer satisfaction
Commenced FA Development Center Operation, Mar. 2013
Bolster sales and service systems based on regional characteristicsFA systems businessAir conditioning business
Center Operation, Mar. 2013(Pune)
Scope of Development• Programmable controllers and
human-machine interface for the Indian market
• Common technologies compatible
:Common areas
Common technologies compatible with the global market standard
50
Sales in India
Industrial Automation
Home Appliances
(Billions of Yen)
:Common areas:Energy & Electric:Industrial automation
15
008 09 10 11 12 … 15
Energy & Electric
(FY)
5 M k t b i t l b llGrowthGrowth
Power Systems Factory Automation Systems Power Devices
150600400
Strengthen sales/service structure and expand business areas to become No.1
globally
5. Make strong businesses stronger globally SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
Increasing global demand and “eco-friendly” needs
Business expansion in Europe, China and U.S., and next-generation product development
0
150
0
600
0
400
Domestic
Overseas
globally
(Bill
ions
of Y
en)
(Bill
ions
of Y
en)
(Bill
ions
of Y
en)
Net
sal
es
Transportation Systems Net Sales Air Conditioning Systems
008 09 10 11 12 … 15
008 09 10 11 12 … 15
008 09 10 11 12 … 15
40%4,000Expanding demand in emerging countries and
broaden business domains in the JapaneseStrategic resource investment and global
development and production
OverseasRatio
(FY) (FY) (FY)
0
720230 32% 33% 34% 34% 35%
1,000
2,000
3,000broaden business domains in the Japanese
marketdevelopment and production
(Bill
ions
of Y
en)
lions
of Y
en)
Billi
ons
of Y
en)
Building Systems Automotive Equipment Space Systems Business
008 09 10 11 12 … 15
008 09 10 11 12 … 15
008 09 10 11 12 (FY)
Expand business by entering the global Utilize a progressive cycle: new installation Localization to serve automakers worldwide
(
(Bil (B
(FY) (FY)
650500100
p y g gmarket of commercial satellitesmaintenance modernization
ions
of Y
en)
Billi
ons
of Y
en)
ons
of Y
en)
16
008 09 10 11 12 … 15
008 09 10 11 12 … 15
008 09 10 11 12 … 15
(Bill( B
(Billi
o(FY) (FY) (FY)
GrowthGrowth5 M k t b i t l b ll(1)Power Systems Business
Provide high-efficiency, low-environmental load total systems, from power generations and transmission & distribution
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
5. Make strong businesses stronger globally
Highly-efficient thermal power generation• New factory with capacity of
60 units per annum.
Turbine GeneratorsTurbine Generators
Power Generation BusinessGlobal Business Promotion Structure and Regional Strategies
Proactive care/maintenance• 2,000+ units installed globallyExpand the nuclear power generation businesses based on energy measures undertaken by individual countries
T i i & Di t ib ti B iAddress new and renewal demand across all regions• Strengthen competitive prowess and develop markets
by globally expanded production of gas insulated switches and transformers
• Address new demand targeting a low carbon society
Transmission & Distribution Business
: Production and engineering bases • Address new demand targeting a low-carbon society, i.e. stabilized power supply, smart grid
• 47,000+ units of GCB installed globallyTransformersTransformersSwitchgearSwitchgear Power TransmissionPower Transmission
Supervisory ControlSupervisory ControlSystems Systems
【United States】• Expanding demand for
stabilized power supply• New transformer factory
(Commenced operation in
【Europe】・Utilize local bases
【Japan】• Exuberant and steady
demand for renewal• Upgrade production
it ( t
g g: Priority markets
Particle Beam Treatment Systems
(Commenced operation in Apr. 2013)
【Asia and the Middle East】・Electricity demand・Utilize local bases
(Dubai, Abu Dhabi, Kuwait,
Mitsubishi Electric Power ProductsMitsubishi Electric Power Products(Memphis Transformer Plant)(Memphis Transformer Plant)
capacity (generators, transformers)
• Smart grid experiment
【China】• Expanding demand for
power grid
• Delivered 8 out of total 11 systems in operation for treatment/research in domestic facilities (as of Oct. 2013)
17
( , , ,Saudi Arabia, Australia etc.)
power grid• Utilize local production
bases
2013)• Global rollout of domestically
cultivated technology
GrowthGrowth5 M k t b i t l b ll(2)Transportation Systems Business
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
The only manufacturer capable of providing driving, braking and controlling as a single company
5. Make strong businesses stronger globally
The only manufacturer capable of providing driving, braking and controlling as a single company
Global Business Promotion Structure and Regional Strategies Propulsion and Driving
SiCSiC inverter for rail carsinverter for rail cars Enclosed type Enclosed type traction motortraction motor
ConverterConverter Gear unitGear unit WNWN geargear cupplingcuppling
: Production and maintenance operating bases Air Conditioning
ConverterConverter Gear unitGear unit WN WN gear gear cupplingcuppling
TTransformerransformer
• Adapts to needs for energy conservation and high functionality
• High shares of domestic and overseas markets
• Using Mitsubishi Electric-manufactured power devices
【North America】• Continuously secure orders • Maintenance business• Active promotion of
information processing
【Europe】• Cooperation with rail car
manufacturers • Expand air conditioning
systems
【Japan】• Next-generation rolling
stock systems• Ground control systems
and equipment
: Priority markets
On-Board InformationAir conditioningAir conditioning
• Energy saving through inverter control• Strengthening of production structure
• Integrated information control aids in operation
【Central and South America】
• Regional marketing in cooperation with rail car
information-processing systems and equipment【Asia and Australia】
• Strong demand for railway infrastructure (such as in India)
• Active promotion of information-processing systems and equipment
【China】Continuously secure orders
systems and equipment• Environment-related
business• Promote strategically
focused products Breaking and Safety
TrainTrain--visionvision
in operation• Multimedia information provision to
enhance customer service
• A wide range of applications, from high-
manufacturers • Expand maintenance and
renewal business
and equipment• Expand maintenance and
renewal business
・Continuously secure orders for large-scale projects
・Maintenance businessAutomatic TrainAutomatic Train
Operation Operation control unitcontrol unit
BrakingBrakingequipmentequipment
gspeed rail to new transportation systems
• Safety enhanced with high reliability
18
5 M k t b i t l b ll GrowthGrowth
(3)Building Systems Business5. Make strong businesses stronger globally GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
High degree of safety and reliability shown by abundant experience Energy-saving solutions through advanced control technology
Utilize a progressive cycleBolster the building systems business
Energy-saving solutions through advanced control technology
New InstallationSales
MaintenanceService
Repairs and Maintenance
Modernization
Global Business Promotion Structure and Regional Strategies
Expand the business based on “Safety/Security” and “Reliability”
Elevator and escalator business
Expand sales of interrelated products with a view to an entire building
Modernization
Establish optimal global operation• Global business promotional structure
centered on the three core-bases(Japan, Shanghai, Bangkok)
• Promote regional businesses, explore new market
• Enhance manufacturing capability and : Markets covered
: Production bases: Priority markets
※Number of countries already penetrated: 92
Bolster the maintenance business
g p ydivision of production, and integrate a supply chain among regional manufacturing bases
Promote the modernization business• Modernization menu related to: environment,
energy conservation, delivery, and costs• Organize business structure in the overseas markets
【Middle East and 【Asia】
【Europe】• Business promotion on
the basis of “Safety/Security” and “Quality”
【China】No.1 of collective strength (Market share, Safety/Security, Comfortableness, Technology)
• Strengthen sales/production capacity and network• The world-fastest elevators (Shanghai Tower, scheduled in 2014)• Maintenance: high-quality services
【Japan】
y p
Bolster the maintenance business• Safety/security, and reliability
Expand sales of Facima & DIGUARD (eco & security) as the core products along with various range of relating products
Building management systems business
【The Americas】• Entry into Brazilian market the largest market in
【Middle East and Africa】
• Penetrating into new markets: stronger collaborations with local partners
【Asia】• Firmly defend our
reputation as the top-end brand: expand profitability by strengthening maintenance and modernization business
• Cross-cooperation between
【Japan】• New installation: standard elevators• Modernization: safety & security features• Building management system: promote systems
and services for energy saving/security
【India】
19
various range of relating products• Total solution systems responsive
to various customer requests
• Entry into Brazilian market, the largest market in South America
• Expand market share by supply from manufacturing bases in Mexico and Colombia
Cross cooperation between elevator/escalator, and building management systems
• Strengthen operational structure to expand market share through new JV
5 M k t b i t l b ll GrowthGrowth
(4)Factory Automation (FA) Systems business5. Make strong businesses stronger globally GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
Integrated solutions from productivity to energy management and global technological support capabilities
Field equipment compatibility and strengthen system construction based on partnership strategies• Partner strategies
Bolster Solutions
Integrated solutions from productivity to energy management and global technological support capabilities
Global Business Promotion Structure and Regional Strategies
Partner strategies-Upper information layers: NEC, SAP, Oracle-S/W:NIPPON DENNO, Wind River, ICONICS, Adroit
• Field equipment – upgrade the presence of own products, pursue common compatibility
-Augment the CC-Link subscribers-iQ Sensor Solution-Capital alliances with key partners
Key product
New business fields: Process automation (PA), building automation (BA) and energy conservation• Bolster Singapore base• Strengthen the PA business by investment/acquisition
Bolster overseas sales capacity
【Central & Eastern Europe Russia】 【Japan】
: Global FA Centers: Priority markets
Key product market share
g y q【Central & Eastern Europe, Russia】• Strengthen marketing prowess as a
manufacturer in the new markets: including acquisition of local distributors
【India】• Strengthen marketing structure: aiming at
【China】• Thorough implementation of
regional marketing strategy: introduce strategically focused
【Japan】• Overwhelming top share• Global strategic management Strengthen capability of supporting Japanese
clients expanding overseas operations• Multilingual supports in Global FA Centers• Immediately publish identical information through the
website
Strengthen technical support capability
AC servomotors AC servomotors
PLCsPLCsGlobal 19% China 19%
Supply capacity and quick delivery by undertaking production close to markets• China: Dedicated production base
Upgrade Production System
【Brazil】• New engineering service
【Taiwan and South Korea】• Smartphone-related capital
expenditure
privileged status in the market by local production and development
introduce strategically focused products by markets
【ASEAN】• Strengthen marketing structure in the
growing market• Stronghold for Global PA Business
St th t t J li t
• Feed local requirements back to the product development rapidly
Global 16%China 14%
Laser processing Laser processing machines (Printed circuit machines (Printed circuit board processing)board processing)Global 60%Global 60%China 75%China 75%
20
• China: Dedicated production base• India: Inverters and low-voltage switchgear production
capability• ASEAN: Smart meter production
• New engineering service company established• Strengthen support to Japanese clients
【Global】 Bolster marketing and operational structure across products and geographic markets
* Market shares are based on the company’s estimation
China 75%China 75%
GrowthGrowth5 M k t b i t l b ll GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
Meet the need for high-efficiency equipment and power electronics technology, and image and information processing technology
5. Make strong businesses stronger globally(5)Automotive Equipment Business
Bolster Products Developmentand image and information processing technology
Alternators StartersStartersEnvironment &Energy Saving
Global Business Promotion Structure and Regional Strategies
Alternators/Starters• Develop and launch products that meet demand
for such fuel-efficient features as ISS, energy regeneration, high efficiency and low weight in a timely manner
Market shareMarket share16%16%
Market shareMarket share16%16%
timely manner EPS• Create competitive products meeting
demand for fuel-efficient featuresAutomotive Equipment for EV/HEV• Realize high-efficiency EV/HEV systems : Production bases
Electric Power Steering
Market shareMarket share21%21%
g y yutilizing the integrated technological capabilities
IPU EV-ECUMotors
: Priority markets
【China and India】• Promote global R&D and production
strategy aimed at enhancing competitiveness in emerging markets that favor reasonably priced cars
【Japan, United States and Europe】• Launch energy-efficient products based on advanced
technologies in line with the spread of electric-powered vehicles and the increasing popularity of fuel-efficient cars that realize automotive safety and comfort
Vehicle-mounted chargers
Upgrade manufacturing bases in response to market expansion1987 2000 2010 2013
・MexicoMitsubishi Electric Automotive Mitsubishi Electric Automotive de México, S.A. de C.V.de México, S.A. de C.V.
・United States・The Philippines・IndonesiaTh il d
・Czech Republic(two companies)・BrazilChi
・China (two companies)Mitsubishi Electric Automotive Mitsubishi Electric Automotive (China) Co., Ltd.(China) Co., Ltd.(EPS, Car multimedia)(EPS, Car multimedia)
Information CommunicationCar Multimedia• Reinforce in-vehicle and inter-
vehicle communication functions in line with the evolution of car
Car navigation systems
21
DSRC/ETC
(Alternators, Starters, etc.)(Alternators, Starters, etc.)・Thailand・India・The Netherlands
・China (EPS, Car multimedia) (EPS, Car multimedia) Changchun Qiming Lingdian Changchun Qiming Lingdian Automotive Electronics Co., Ltd. Automotive Electronics Co., Ltd. (Car multimedia)(Car multimedia)
in line with the evolution of car navigation systems into on-board information navigators
* Market shares are based on the company’s estimation
5 M k t b i t l b ll(6)Power Devices Business
Offer abundant product lineups utilizing high-performance, high-reliability components and power electronics technology
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
5. Make strong businesses stronger globally
and power electronics technologySiC power modules(Commercialized in May 2013)
ConsumerConsumer IndustrialIndustrial Rolling stockRolling stock
Global Business Promotion Structure and Regional Strategies
IPM for EV・HEV inverter• Significant trends of growing Automotive Automotive
EquipmentEquipment g g gdemands in European and Asian markets, subsequent to Japan/Unites States
EquipmentEquipment
FAFAIGBT/IPM for industrial
equipment IPM: Production and sales bases FA FA EquipmentEquipment
equipment, IPM• Growing capital expenditure for
manufacturing, particularly in Asia
• Regarding low-capacity devices, expand product lineups through Vincotech
Photovoltaic (PV) Photovoltaic (PV) InvertersInverters
: Production and sales bases: Priority markets
Air Air ConditionersConditioners
DIPIPM for inverter-type home electronics• Global top share• Growing demand mainly in Asia, inverter-
type air conditioners, refrigerators and other
Rolling StockRolling Stock HV-IGBT• Meeting expanding
demand as railway
p g(particularly in the European market)
For renewable energy equipment• Increase in demand for renewable energy
equipment especially in Europe and North America
22* IPM: Intelligent Power Module, DIP: Dual In-line Package, HV: High Voltage, IGBT: Insulated Gate Bipolar Transistor, Vincotech: Vincotech Holdings S.à r.L.
type air conditioners, refrigerators and other household appliances
demand as railway networks around the world advance
• Make better use of Vincotech for European PV systems
5 M k t b i t l b llConsistently pursuing energy conservation through
high efficiency compressors and advanced inverter control/sensing technology
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
5. Make strong businesses stronger globally(7)Air Conditioning Systems Business
high-efficiency compressors and advanced inverter control/sensing technologyStrengthen Air Conditioning Systems BusinessStrengthen global development/production •Strengthen the development of environmental and
energy saving differentiation •Accelerate development of regionally responsive models
Global Business Promotion Structure and Regional Strategies
Accelerate development of regionally responsive models•Bolster overseas sales capabilities
New operational base for New operational base for North America (Apr. 2013)North America (Apr. 2013)
Room air conditioners
Divisional Headquarter (North America)
Technical Center, Training Facilities, Central Warehouse
:Production bases
Multiunit airConditioner
systems for buildings
Store and office use air conditioners
St th Ai t W t B i:Priority markets Strengthen Air-to-Water BusinessesBusiness expansion through collaboration with local partners in Europe•Augment sales and service systems •Accelerate initiatives to meet customer requirements
through local production and strengthen engineering support
【Japan】• Requirements for replacement• Further energy saving• New fields: heat dissipation or
【Europe】• Promote development
and business expansion focusing on the
i t d
【China】• Boost product competitiveness of
CITY MULTI, POWER MULTI, etc.• Strengthen lineups; Floor-mounted support
(Set up Housing Test Facility in Scotland, Jul. 2013)
Compressors Strengthen development of models that conform to the energy conservation systems of various regions
New fields: heat dissipation or cooling of equipment/facilityenvironment and energy
conservation, heat pumps and heater demand
• Increase models such as PAC for heaters, and cultivate new customers
• Penetrating into emerging
g pinverter unit, RAC and floor-installed inverter unit
• Operational investments
【Asia, Middle East】• Cost reduction: local (Thailand)
d ti
【United States】• Applications responsive to U.S.
markets: multiple-use, energy-saving feature, ductless
• Reinforce manufacturing and
23* RAC: Room Air Conditioner, PAC: Package Air Conditioner
g•Improve performance of air conditioners and help
expand sales by bolstering high-efficiency development and production capabilities
markets: Eastern Europe, Russia, Turkey
production • India & emerging markets: further
sales channels
• Reinforce manufacturing and applied development capacity to meet U.S. market needs
5 M k t b i t l b ll
Satellite Systems: Contribute to construction of global social infrastructure
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
5. Make strong businesses stronger globally(8)Space Systems Business
Communication satellites Satellite positioning Earth observation satellite From the 2000s, global promotion of the standard satellite bus DS2000 for geosynchronous satellite: in such markets as communication, broadcasting, as the strategic core model.Awarded as the contractor with Türksat-4A/4B ST-2
Beside the car navigation systems, emit positioning signals for navigation support and measurement for maritime navigation, aviation and various other purposes Mitsubishi Electric has been commissioned to
Observe the earth on-orbit in the space, equipped with optical sensor, Synthetic Aperture Rader (SAR) sensor and others Developed the “Ibuki (GOSAT)” – observe di t ib ti f h th ALOS 2 f
y g
Awarded as the contractor with Türksat-4A/4B, ST-2 for Singapore & Taiwan, Superbird C2 and others
Mitsubishi Electric has been commissioned to develop a system utilizing 4 units of quasi-zenith satellite, which is the first satellite positioning system in JapanThe “Michibiki”, first quasi-zenith satellite of the program, successfully launched in Sep. 2010The second through the fourth, scheduled to be launched orderly from 2017
distribution of greenhouse gas; the ALOS-2 – for detecting facts about disasters; the “Himawari 7, 8 and 9”, for meteorological observation.Contribution to the prevention against the global warming, disaster surveillance, weather reports and others
Türksat-4A/4B
launched orderly from 2017
Michibiki©JAXA
Ibuki(GOSAT)
©JAXA
The first quasi-zenith satellite
The second through the fourth
quasi-zenith satellite
Ground Systems: Global business development for the ground control facilities for satellites operations the optical/radio telescopes for astronomical observatories
ST-2 Daichi - 2(ALOS-2)Superbird-C2 Himawari-8 and 9
Terrestrial control over satellites satellites operations, the optical/radio telescopes for astronomical observatories
Telescopes©NAOJFrom 1980s, developed large-
scale telescopes: delivered the Subaru telescope (Hawaii, U.S.), ALMA ACA (Chile) etc.Contribution to the quest on
Tracking and controlling over satellites and rocketsCapable of providing a total system coordinating the satellites and ground control
24
64m-dia. parabolic antenna for deep
space observationSubaru telescope
JAXAground controlnetwork system ALMA ACA
Contribution to the quest on the enigmatic chronology of the universe
satellites and ground control functions
6 R h &D l t GrowthGrowth
Equipment & systems for energy conservation Information sec rit and ad anced encr ption technologies
6. Research &Development:Design Life and Society in the Future
RecyclingRecycling--oriented oriented Society Society Safety and SecuritySafety and Security
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
Power apparatus and system with power semiconductorsFunctional-intensive power conversion systemsRealize power conversion and current interruption utilizing power semiconductors (w/o circuit breakers) Semiconductor-based HVDC systemStructure ramified direct current transmission grid with power semiconductor based system substituting the conventional
Power apparatus and system with power semiconductorsFunctional-intensive power conversion systemsRealize power conversion and current interruption utilizing power semiconductors (w/o circuit breakers) Semiconductor-based HVDC systemStructure ramified direct current transmission grid with power semiconductor based system substituting the conventional
Equipment & systems for energy conservation
TradesecretsTrade
secrets
Processing encryptedProcessing encryptedinformationinformation
Reconcile the requirements for security and convenience at the same time, enabling search and computation without decrypting relevant data
Information security and advanced encryption technologies
FactoryFactoryautomationautomation
Data CenterData Center,,SOCSOC
CyberdefenseCyber
defensesemiconductor-based system, substituting the conventionaltransformers/breakerssemiconductor-based system, substituting the conventionaltransformers/breakers
Data
Clandestine research
SecretarithmeticoperationFunctional
encryption
Personal data Personal data andandconfidential information,confidential information,protected protected by encryptionby encryption
PersonalinformationPersonal
informationSocial
infrastructureSocial
infrastructure
NationalSecurityNationalSecurity
yp g
FinanceFinance
EnergyEnergy
BuildingBuilding
PrivacyPrivacy
defensedefense
Utilization of non-exploited or waste energy capacitiesOceanic resources: offshore wind power, submarine resource researchApplied superconductive technologies: Coils, motors
Utilization of non-exploited or waste energy capacitiesOceanic resources: offshore wind power, submarine resource researchApplied superconductive technologies: Coils, motors
Recycle & resource recovery
DataAggregation
Statistics
SearchAudit
ProvisionPresaging
Analysis
Diagnosis
SecuritySecurity
GovernmentGovernment TransportationTransportation
Disaster Preventative systems
Cities
Factories
Water reclamation factories
Resource Resource recoveryrecovery
Higher value added to wastesC ti l d t f lHigher value added to wastesC ti l d t f l
Running water processingRunning water processing
Material Material recyclerecycle
Surveillance network for disaster predictionHelicopter-mounted satellite communication, wireless mesh network and various radars
Surveillance network for disaster predictionHelicopter-mounted satellite communication, wireless mesh network and various radars
Small meteorologicalSmall meteorologicalWaterWater
reclamationreclamation((city)city)
Converting sewage sludge to fuelUtilization of unused thermal energyExpanded scope of recyclable items such as metallic and rare earth elements
Converting sewage sludge to fuelUtilization of unused thermal energyExpanded scope of recyclable items such as metallic and rare earth elements
Advanced water recycling/reuse systemAdvanced water recycling/reuse system
Water reclamation Water reclamation (industrial)(industrial)
Satellite communication systems on unmanned aerial vehicle
Small meteorological radar
Realize smaller size and higher performances, utilizing the world-best GaN amplifiers along with controlling technologies
Small meteorological radar
Realize smaller size and higher performances, utilizing the world-best GaN amplifiers along with controlling technologies
Tsunami surveillance radarHigh performance radar detecting
Tsunami surveillance radarHigh performance radar detecting
Sewage treatment plantsWastewater Wastewater treatmenttreatmentAdvanced water-recycling/reuse system
Small and simple sewage treatment systemsIndustrial wastewater-reuse systemsDesalination systems
Advanced water-recycling/reuse systemSmall and simple sewage treatment systemsIndustrial wastewater-reuse systemsDesalination systems
Surveillance systems on wireless mesh network
High performance radar detecting anomalies on remote sea-surface beyond visible scope
High performance radar detecting anomalies on remote sea-surface beyond visible scope
25
treatmenttreatment
Seawater desalinationSeawater desalination
SContinuously Enhance Profitability by Strengthening the
Manufacturing Craftsmanship
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
7. Strengthening Management Foundation
4,000
5,000 300
4,000
5,000 300(Billions of Yen) (Billions of Yen)
Operating Income(Right)
• Concentrated development in line with growth strategies; promote development of key parts; promoting commercialization in global terms
• Reinforce product competitiveness by accelerating the development of more compact, lightweight and energy-efficient products that contribute to a reduced environmental burden
• Reinforce product competitiveness through the synergy of development d f t i biliti hil ti i ti th h&
D a
nd IP
2,000
3,000
100
200
2,000
3,000
100
200JPY/EUR
JPY/USD
133
106114
162
114
and manufacturing capabilities while promoting innovation through stronger industry-government-academia tie-ups
• Reinforce strategic IP activities (create competitive IP rights, promote ISO conformity, etc.)
Promote R-SIGMA 21 Activities • Further strengthen cost planning and VE activities (expand raw material
R&
0
1,000
03 04 05 06 07 08 09 10 11 120
100
0
1,000
03 04 05 06 07 08 09 10 11 120
100
Net Sales(Left)
83
(FY)
g p g ( pVA for steel/non-ferrous metals, use advanced and high- functional components, etc.)
• Optimize overall global procurement (expand overseas procurement, increase procurement capacity of overseas bases, etc.)
• Supplier selection and focus (classify suppliers , bolster partnerships directly connected to business strategies, etc.)Mi i i lif l t th h t ti iti ( d t
Proc
urem
ent
03 04 05 06 07 08 09 10 11 1203 04 05 06 07 08 09 10 11 12(FY)
Create higher value, mainly driven by environmental performancesStreamline all the business processes
• Minimize lifecycle cost through green procurement activities (respond to compact and lightweight components and energy conservation, etc.)
• Improve manufacturing structure; broaden Just-in-Time (JIT) activities resulting in improved QCD; promote in-house manufacturing of key parts; grow ties btw parent factories/overseas facilities, promote JIT in logistics etcdu
ctiv
ityStreamline all the business processes Promote local production/procurement for local consumptionUpgrade FOREX responsiveness in
• Enhance activities that focus on built-in quality from development and design stages
• Encourage self-initiated and continuous improvement at all the business processesC lti t lit i d t l bl f
logistics etc.Pr
odua
lity
26*IPR: Intellectual Property Rights, RΣ: Relation-based Strategic Integration for Global MArkets, VE: Value Engineering, QCD: Quality/Cost/Delivery, DQ: Diamond Quality
pg pprocurement, sales and financing • Cultivate quality consciousness; educate personnel capable of
professional conducts in conformity with the fundamental principles for better quality
Qu
S7. Strengthening Management Foundation Improving Productivity with Just In Time (JIT) Activities
GrowthGrowth
SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
Augment improvement efforts throughout all business processes
(%)
Reduce waste and loss by raising the level of visualization and clarification Shorten lead times, Reduce inventory, Improve quality
Development DesignDevelopment DesignCost ReductionCost Reduction
Cost of Sales Ratio
Augment improvement efforts throughout all business processes
72
74
76
78(%)
FY01:77.9%
FY12:73.0%
SalesSales
Development, DesignDevelopment, DesignProcurementProcurement• Promote standardization and
reductions in size and weight• Engineering-driven efforts for cost
reductions • To be reflected in production
design
• Call for JIT delivery• VMI – shorten procurement lead time • Shipments at smaller lots• 100% adherence to contract delivery
terms
7001 03 05 07 09 11
Global implementationGlobal implementation
(FY)
Production Affiliated CompaniesAffiliated Companies
• Minimize product inventories
Installation and adjustmentat local sites
Installation and adjustmentat local sites • Shorten lead times for manufacturing• Encourage a group-integrated JIT
i t ti itQuality MeetingQuality Meeting
((ThailandThailand、、Kang Yong ElectricKang Yong Electric))
at local sitesat local sites• Shorten lead time for installation,
fabrication and adjustment at local sites• Streamline the implementation methods of
the local works• Development of tools and equipment for
site works
Shorten lead times for manufacturing• Curtail work-in-process• Increase direct-to-production-site
rate (Target: 100%)
improvement activity• Provide education and training to key
persons• Encourage JIT improvement activities
at the vendors’ sites• Improve production quality• Improve degree of compliance with
th d li t
In the overseas operational bases as ll f t th k f
Quality ControlQuality Control• Front-loading – proactive quality
inspection • Closer cooperation in cross process
the delivery terms
LogisticsLogistics• Shorten distribution lead times• Change and simplify packaging
specification: less use of
27
well, foster the keen awareness ofall the workforce on the productivity by implementing the JIT activities
terms • Upgrade quality evaluation and
testing technology
specification: less use of packaging materials
• Modal shift
*VMI: Vendor Managed Inventory
SGrowthGrowth
Generate stable cash flow by raising profitability and streamlining assets
Enhance and strengthen risk tolerance through the balanced application of funds
(Improve financial standing, return value to shareholders, invest in growth fields)
7. Strengthening Management Foundation SoundnessSoundnessProfitabilityEfficiency
ProfitabilityEfficiency
150
200
150
200
160.1 170.0
191.9
144 4 151.7
181.2167.7172.2169.6 179.2
• Structural reforms for improved profitability• Stronger focus on quality, cost, production
technologies development intellectual property
Improve Profitability
( p g, , g )
Invest in Growth Field Capital InvestmentR&D(Billions of Yen) (Billions of Yen) 200.0
50
100
150
50
100
150 144.4133.7
91.9
Increase Asset & Cash Turnover
technologies, development, intellectual property, marketing and services
• Termination of businesses, strategic alliances
008 09 10 11 12 13
008 09 10 11 12 13 (FY)(FY)
• Promote inventory reduction mainly through Just In Time activities and securitization of accounts receivable, etc.
• Enhance Group finances (Global CMS: yen, dollars, euros, baht, yuan, etc.)
: Energy and Electric : Industrial Automation : Information and Communication: Electronic Devices : Home Appliance : Other
Shareholder returns
10
12
14
300400
Free Cash Flow(Billions
of Yen)
182 0182 0
¥12
FY13195 7195 7
¥12
1,500
2,000
30
40
(%)
40.6%
1,769.3
Cash flow from Cash flow from operating activitiesoperating activities
Free Cash FlowFree Cash Flow
Increase profitability by strengthening
businesses
Shareholder returns(Cash dividends)(¥/share) (Billions of Yen) Debt Reduction
Debt to Debt to asset ratioasset ratio
¥11
2
4
6
8
300-200-100
0100200
--33.833.8
182.0182.0
--80.980.9
¥61st half
¥6
¥4
195.7195.7
500
1,000
10
20
14.5%542.2
16.0%
484 3
677.8
20.3%
537.5
16.7%
--70.970.9
15.9%
540.5Focus Debt
Cash flow from investing Cash flow from investing activitiesactivities
28
0
2
08 09 10 11 12 13
-30008 09 10 11 12(FY) (FY)
097 08 09 10 11 12
0(FY)
484.3investment on growth fields
Debtactivitiesactivities
8. Corporate MissionEncourage Fulfillment of Social Responsibility through Our Business Activities
QualityQuality
Seven Guiding PrinciplesTrustTrust
QualityQualityTechnologyTechnology
The Mitsubishi Electric Group will continually improve its technologies and services by applying creativity to all aspects of its business By
Corporate MissionCitizenship Citizenship Growth Growth
and services by applying creativity to all aspects of its business. By doing so, we enhance the quality of life in our society.
EthicsEthicsEnvironmentEnvironment
2929
Increased Flexibility and Transparency of the Management, Reinforced Supervisory Function over the Management
9. Corporate Governance
General Shareholders’ Meeting
Execution SupervisionReporting toReporting to
Appointment
Actual practices at Mitsubishi Electric
• Thorough separation of execution and supervisionf f O
Executive Officers
President & CEO
Board of DirectorsAppointment / Dismissal / SupervisionBusiness Execution Authorization Transfer
Supervision
Nomination Committee
• Majority of board of directors NOT assuming responsibility as executive officer
• Minimal number of executive officers (22 members) responsible for day-to-day operation of each business division and corporate administrative sections
Chairperson
sExecutive Officers Auditing
Committee
Each Business and Management Division
Reporting to
*More than 50% of members composing each of the three
Committee
Compensation Committee
• Multi-phase risk management by executive officers meeting
• Implement global internal control system to ensure compliance with the Corporation Law and J-SOX Act (Financial Instruments and Exchange Law)
Dire
ctor
s
p gcommittees shall be outside directors. • Maintaining systems to respond to companywide risks
Appropriate response to revisions of legislation and other external factors
Appropriate disclosure to shareholders and other stakeholders
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Increase Corporate Value
“Change is progress.C ti h i th ll i f l ”
Cautionary StatementsThe expectation of operating results herein and any associated statement to be made orally with respect to the Company’s current plans, estimates, strategies and beliefs, and any other statements that are not historical facts are forward-looking statements. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimated,” “targeted,” along with any
Continuous change is the wellspring of new value.”
statements. Words such as expects, anticipates, plans, believes, scheduled, estimated, targeted, along with anyvariations of these words and similar expressions are intended to identify forward-looking statements that include but are not limited to projections of revenues, earnings, performance and production. While the statements herein are based on certain assumptions and premises that the Company trusts and considers to be reasonable under the circumstances to the date of announcement, you are requested to kindly take note that actual operating results are subject to change due to any of the factors as contemplated hereunder and/or any additional factor unforeseeable as of the date of this announcement. Such factors materially affecting the expectations expressed herein shall include but are not limited to the following. As such,y g gadditional factors may arise at any given time.
1. Any change in worldwide economic and social conditions, as well as laws, regulations, taxation and other legislation
2. Changes in foreign currency exchange rates, especially yen/dollar rates3. Changes in stock markets, especially in Japan4 Changes in balance of supply and demand of products that may affect prices and volume as well as material4. Changes in balance of supply and demand of products that may affect prices and volume, as well as material
procurement conditions5. Changes in the ability to fund raising, especially in Japan6. Uncertainties relating to patents, licenses and other intellectual property, including disputes involving
patent infringement7. New environmental regulations or the arising of environmental issues8 D f i d i8. Defects in products or services9. Litigation and legal proceedings brought and contemplated against the Company or its subsidiaries and
affiliates that may adversely affect operations or finances10. Technological change, the development of products using new technology, manufacturing and
time-to-market11. Business restructuring
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g12. Occurrence of large-scale disasters including earthquakes, typhoons, tsunami, fires and others 13. Social or political upheaval caused by terrorism, war, pandemic by new strains of influenza and other diseases,
or other factors.