Mitsubishi Electric (6503) IR Day 2026 presentation summary

Review of previous medium-term management plan period

• Undertook structural reforms, transforming the business portfolio and investing ¥1.5 trillion in key growth areas, while divesting non-core assets worth ¥280 billion and returning ¥0.7 trillion to shareholders.

• Shifted focus from structural reform to business model transformation, emphasizing solution creation and component enhancement for greater corporate value.

Business strategy for enhancing corporate value

• Identified Smart Energy, Automation, and Defense & Space as three key focus areas, leveraging technology assets to address global challenges and market opportunities.

• Targeting significant growth in focus businesses, aiming for OPM of 15% and revenue CAGR of 9% in these areas by FY2031.

• Building a stable, high-profit revenue structure through continuous customer engagement, advanced solutions, and expansion of components and maintenance/services.

• Strengthening proprietary AI and digital engineering to create advanced solutions, including energy-efficient data centers (PUE 1.1) and lights-out factories.

Financial strategy

• Prioritizing profitability and capital efficiency, with FY2031 targets of 12%+ adjusted OPM, 12% ROE, and 3–5% revenue CAGR.

• Allocating ¥4.6 trillion for capital expenditures, M&A, and investments in FY2027–FY2031, with a total payout ratio of 60%+ for shareholder returns.