2
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2020
ANNUAL REPORT
For the year ended March 31, 2020
To Our Shareholders and Investors
Research and Development
Financial Highlights
Intellectual Property
Non-financial Highlights
CSR at Mitsubishi Electric Group
Contents
02
03
04
05
06
08
12
14
Initiatives / External Evaluation
Initiatives to Create Value
Corporate Strategy
At a Glance
Fiscal 2020 Topics
Review of Operations
14
15
16
17
18
Energy and Electric Systems
Industrial Automation Systems
Information and Communication Systems
Electronic Devices
Home Appliances
19
20
21
40
41
42
43
61
CSR Management
G: Governance
E: Environment
S: Social
22
24
31
33
39
ESG Information Disclosure List
Directors and Executive Officers
Organization
Major Subsidiaries and Affiliates
Financial Section
Corporate Data /
Shareholder Information
Contents
02
03
04
05
06
08
12
14
To Our Shareholders and Investors
Financial Highlights
Non-financial Highlights
Initiatives / External Evaluation
Initiatives to Create Value
Corporate Strategy
At a Glance
Fiscal 2020 Topics
Review of Operations
14
15
16
17
18
Energy and Electric Systems
Industrial Automation Systems
Information and Communication Systems
Electronic Devices
Home Appliances
19
20
21
40
41
42
43
61
Research and Development
Intellectual Property
CSR at Mitsubishi Electric Group
22
24
31
33
39
CSR Management
G: Governance
E: Environment
S: Social
ESG Information Disclosure List
Directors and Executive Officers
Organization
Major Subsidiaries and Affiliates
Financial Section
Corporate Data /
Shareholder Information
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
01
To Our Shareholders and Investors
Corporate Mission
The Mitsubishi Electric Group will continually
improve its technologies and services by applying
creativity to all aspects of its business. By doing so,
we enhance the quality of life in our society. To this
end, all members of the Group will pursue the
following Seven Guiding Principles.
Seven
Guiding Principles
Trust, Quality, Technology,
Citizenship,
Ethics and Compliance,
Environment, Growth
I would like to express my deepest sympathy and condolences for all the people
who have lost their lives to COVID-19, as well as for everyone who has suffered
through the pandemic and their families and acquaintances. In addition, I would
like to express my sincere gratitude and respect to everyone working on the front
lines of the medical field and other fields to prevent the spread of disease and
treat patients.
Mitsubishi Electric Group gives the highest priority to the safety and health of
customers, business partners, and other related parties, as well as employees
and their families. Having taken adequate measures to prevent the spread of the
infection, such as thorough application of remote work, and securing social dis-
tance in production, construction and service related departments, we are
continuing business that are necessary for fulfilling our responsibilities to society
as a corporation in order to maintain people’s lives, providing a stable supply of
products, providing services, and supporting our customers.
The world economy is expected to suffer a significantly adverse impact from the
pandemic. The economic growth rate is expected to slow significantly compared
to the previous fiscal year, and we expect that this will have a significant impact
on our business performance. While ensuring that employment is maintained, we
will work to minimize the impact on business results even if it takes a long time
for the pandemic to end.
02 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Nonetheless, we expect that measures to prevent the spread of the disease will
bring dramatic changes to the values of humanity, including lifestyles, work
styles, business styles, and communication methods. The fiscal year ending
March 31, 2021 (hereinafter fiscal 2021) is a milestone year, as it marks the
100th anniversary of our founding. We will incorporate new values into our own
working styles, while uniting all the capabilities inside and outside of the Group, in
order to respond to changing demand and to address social challenges.
July 2020
President & CEO Takeshi Sugiyama
Financial Highlights
Performance for the Year Ended March 31, 2020
Revenue
Operating profit
Net profit attributable to Mitsubishi Electric Corp. stockholders
Total assets
Bonds and borrowings
Mitsubishi Electric Corp. stockholders' equity
Capital expenditure (Based on the recognized value of property, plant and equipment)
R&D expenditures
Per share Amounts:
Earnings per share attributable to Mitsubishi Electric Corp. stockholders
Basic
Diluted
Cash dividends declared
Statistical Information
Operating profit ratio
Return on equity (ROE)
Bonds and borrowings to total assets
Years ended March 31
2019
¥4,519,921
290,477
226,648
4,356,211
298,438
2,399,946
198,442
212,794
¥105.65
105.65
40
6.4%
9.7
6.9
Yen
(millions)
Yen
%
2020
¥4,462,509
259,661
221,834
4,409,771
267,008
2,429,743
227,450
206,846
¥103.41
103.41
40
5.8%
9.2
6.1
1. The consolidated financial statements are prepared in accordance with International Financial Reporting Standards.
2. The balance of bonds and borrowings and the ratio of bonds and borrowings to total assets include lease liabilities for the fiscal year ended March 31, 2019.
3. R&D expenditures include elements spent on quality improvements which constitute manufacturing costs.
4. Diluted earnings per share attributable to Mitsubishi Electric Corp. stockholders is equal to Basic earnings per share attributable to Mitsubishi Electric Corp.stockholders, as no dilutive securities existed.
Revenue Breakdown by Business Segment
Others
Revenue
13.0%
659,636 million
Energy and Electric Systems 25.8%
Revenue 1,307,389 million
Home Appliances
21.5%
Revenue 1,090,248 million
Electronic Devices
Revenue
4.1%
208,750 million
Note: Inter-segment sales are included in the amounts of the diagram above.
Industrial Automation Systems 26.6%
Revenue 1,349,429 million
Information and
Communication Systems
Revenue
9.0%
455,596 million
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
03
Non-financial Highlights
Main target initiatives in fiscal 2021
Realize a sustainable society
Provide products and services that
contribute to Goal 7, “Affordable and
clean energy,” and Goal 13, “Climate
action,” of the SDGs
Reduce CO2 emissions
from product usage
35% reduction
compared to FY2001 by FY2021
Reduce CO2 emissions from production
Less than
1.47 million tons
by FY2021
Provide safety, security,and comfort
Provide products and services that
contribute to Goal 11, “Sustainable
cities and communities,” of the SDGs
Make Group-wide efforts to investigate the
cause of serious malfunctions that have
occurred in the past, and implement
countermeasures
Ensure safety through risk assessment
Maintain 100%
implementation of risk assessments of target
home electronic products
Respect human rights and promote the active participation
of diverse human resources
Provide anti-harassment education for all
employees
Attendance rate of
100%
Enhancement of a reporting system with
respect to human rights violations
Increase the ratio of women among new
recruits in technical positions
Future target of
20%
Strengthen corporate governance and compliance on a continuous basis
Maintain a 100% attendance in e-learning
programs on compliance
Maintain rate of
100%
Provide proper information to directors at the
proper time, conduct a review of the board of
directors, and analyze and evaluate the review
Enhancement comprehensive cybersecurity
countermeasures
1.Technical measures,
2.Thorough document management,
3.Framework upgrading
For results of fiscal 2020, please refer to the following:
web
Management of CSR Materiality
https://www.MitsubishiElectric.com/en/sustainability/csr/management/management/materiality_progress/
04 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Initiatives / External Evaluation
Main initiatives and external evaluations related to ESG are as follows:
Initiatives
Participation in the UN Global Compact
In May 2018, the Mitsubishi Electric Group signed the UN Global Compact (UNGC) aimed at promoting CSR
activities based on international norms.
Expression of approval of the TCFD recommendations
The Mitsubishi Electric Group has expressed approval of the recommendations by TCFD (Task Force on Climate-related
Financial Disclosures) and has been promoting initiatives and disclosing information according to its recommendations.
External Evaluation
CDP
Mitsubishi Electric has received the highest rating from CDP. "A List" company for "Water Security" for four consecutive years.
SBT
It is recognized that the Mitsubishi Electric Group’s greenhouse gas reduction targets for 2030 are based on scientific
grounds to “Holding the increase in the global average temperature to well below 2°C above pre-industrial levels” as stipu-
lated in the Paris Agreement. We have obtained certification from the SBT (Science Based Targets) initiative.
EcoVadis
Mitsubishi Electric has awarded the top-rank Gold Rating in corporate social responsibility (CSR) by EcoVadis, the global CSR
assessment agency. Mitsubishi Electric scored especially highly in the categories of the environment and sustainable pro-
curement. The Gold Rating places Mitsubishi Electric among the top 5 percent of all companies assessed by EcoVadis.
FTSE Index Series
FTSE Russell (UK) is a company that engages in the development of global investment indexes and the provision of financial
data to investors. Mitsubishi Electric was selected as a constituent of the company’s FTSE4Good Index Series. Additionally,
Mitsubishi Electric was selected as a constituent of the FTSE Blossom Japan Index. The index has also been adopted
as an investment outlet by the Government Pension Investment Fund (GPIF).
MSCI Indexes
MSCI (USA) is a company that calculates and announces various indexes of global constituents. Mitsubishi Electric was
selected as a constituent of MSCI ESG Leaders Indexes. Mitsubishi Electric was selected as a constituent for the MSCI Japan
ESG Select Leaders Index, which consists of Japanese stock names ranked according to their ESG (environment, social,
governance) performance, and also for the MSCI Japan Empowering Women Index (WIN), consisting of select companies in
Japan displaying excellent gender diversity. The two indexes have also been adopted as an investment outlet by GPIF.
* THE INCLUSION OF Mitsubishi Electric Corporation IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES
HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Mitsubishi Electric Corporation BY MSCI OR ANY OF ITS AFFILIATES. THE
MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR
ITS AFFILIATES.
S&P/JPX Carbon Efficient Index
Mitsubishi Electric was selected as a constituent of the S&P/JPX Carbon Efficient Index designed to measure the perfor-
mance of companies by focusing on the level of carbon efficiency (carbon emissions per sales). The Index, which is con-
structed by S&P Dow Jones Indices, is based on carbon emission data by Trucost, which assesses risks relating to climate
change, natural resource constraints, and broader environmental, social, and governance factors. The index has also been
adopted as an investment outlet by GPIF.
Other External Evaluations
ERUBOSHI
White 500
S&P/JPX Carbon Efficient Index
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
05
Initiatives to Create Value
Mitsubishi Electric's Initiatives to Create Value
The Mitsubishi Electric Group has taken on the challenge of resolving diversifying social challenges including environmental issues and resource and energy issues
through its products, systems and services. In doing so, it promotes initiatives to create value, such as simultaneously achieving a "sustainable society," and "safety, se-
curity, and comfort." In these ways, the Mitsubishi Electric Group pursues the sustainable growth of the entire Group.
06 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Mitsubishi Electric's Initiatives to Create Value
Meanwhile, by pursuing sustainable growth of the Group through all its corporate activities including initiatives to create value, the Group will also contribute to achieving
the SDGs, common global goals.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
07
Corporate Strategy
Corporate Principle
The Mitsubishi Electric Group has positioned corporate social responsibility (CSR)
as a pillar of its corporate management, based on its Corporate Mission and
Seven Guiding Principles. Accordingly, the Group has made committed efforts to
become a corporation whose actions are rated highly through its initiatives
toward solving social challenges. In other words, we aim to become a corporation
that is trusted by its stakeholders, including society, customers, shareholders, and
employees, and that earns their satisfaction through its business practices.
The Group has taken on the challenge of resolving diversifying social challeng-
es including environmental issues and resource and energy issues through its
products, systems and services. In doing so, it promotes initiatives to create val-
ues, such as simultaneous achievement of a “sustainable society,” and “safety,
security, and comfort.” In these ways, the Mitsubishi Electric Group pursues the
sustainable growth of the entire Group.
Corporate Mission
The Mitsubishi Electric Group will continually improve its technologies
and services by applying creativity to all aspects of its business.
By doing so, we enhance the quality of life in our society.
Seven Guiding
Principles
1. Trust:
Establish relationships with society,
customers, shareholders, employees,
and business partners based on strong
mutual trust and respect.
4. Citizenship:
As a global player, contribute to the development of
communities and society as a whole.
5. Ethics and Compliance: In all endeavors, conduct ourselves in compliance
with applicable laws and high ethical standards.
2. Quality:
Provide the best products and services
with unsurpassed quality.
6. Environment:
Respect nature, and strive to protect and improve
the global environment.
3. Technology:
Pioneer new markets by promoting
research and development, and foster-
ing technological innovation.
7. Growth:
Assure fair earnings to build a foundation for future
growth.
CSR materiality
Management Policy
Since fiscal 2002 the Group has adhered to the management policy of maintaining Balanced Corporate Management based on three perspectives: growth, profitability
and efficiency, and soundness. Through these perspectives it has striven to secure greater corporate value.
The Group is also committed to continuously enhancing its corporate governance and compliance systems.
Maintain and evolve Balanced Corporate Management
Growth
• Sustainable growth through providing
solutions to social challenges
• Technology Synergies/Business
Synergies
• Agile response to changes in
business environment
Greater
Corporate
Value
Profitability
Efficiency
• Enhance capital efficiency
• Increase utilization efficiency of
natural resources and energy
• Create a stronger business
foundation
Soundness
• Constantly review and refresh
business portfolio
• Maintain sound financial standing
• Strengthen corporate governance
and compliance on a continuous
basis
Pursue the Satisfaction of
the Four Stakeholder Categories
Social Contributions
Excellent Products and Services
Society
Customers
Increase Corporate Value
Rewarding Workplace
Shareholders
Employees
08 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Strategy
The Mitsubishi Electric Group will provide integrated solutions to address diversifying social challenges, in the four fields of Life, Industry, Infrastructure and Mobility, uniting all the
capabilities inside and outside of the Group. For this purpose, we will enhance our business foundation fostered over the past 100 years* and further transform business models.
*Business foundation fostered over the past100 years: connection with customers, technologies, personnel, products, corporate culture,etc.
Initiatives to
Create Value
Social
Challenges
Provide integrated solutions
uniting all the capabilities inside and outside of the Group
Transforming business models
Enhance the 100-year business foundation × Strengthen all forms of collaboration
= Evolution of Technology Synergies and Business Synergies
Mobility
Zero traffic accidents
Enrich leisure time
Life
Eliminate regional disparities
Comfortable life
Health
Comfortable transport
Improve QOL of mobility impaired people
Prepare for infectious diseases
Eliminate traffic congestion
Build communities
Reduce air pollution
Equal opportunity for education and training
Measures for deteriorating infrastructure
Prevent global warming
Preserve the ecosystem
Prepare for natural disasters
Eliminate poverty/ inequalities
Clean water
Avoid water shortage/ food shortage
Industry and technological innovation
Address labor shortage
etc.
Prepare for man-made threats
Response to uneven distribution and depletion of resources
Infrastructure
Sustainable society
Industry
Based on its strategy, Mitsubishi Electric Group will pursue value creation for addressing social challenges, and contribute to achieving the 17 goals of the SDGs*, through all
corporate activities.
*SDGs : “Sustainable Development Goals” adopted by the United Nations as goals to achieve towards 2030
Factory
Automation
Home
Appliances
Power Devices
Contribute through value creation
Satellites
Power Systems
…
Surveillance
Control Systems
Facilities and Equipment
for Buildings
Automotive Equipment
Transportation Systems
Image Analyzing Solution
Contribute through all corporate activities
Recycling
(Home Appliances)
Strengthen Corporate
Governance and
Compliance on
a Continuous
Basis
Reduce Environmental
Burden During Production
Tree
Planting
Intuitively-interfaced
remote-control
-Promote Universal Design-
…
Respect Human
Rights and Promote
the Active
Participation of
Diverse Human
Resources
Initiatives to Realize
an Inclusive Society
SOCIO-ROOTS
Fund
Further promote initiatives to create value, such as simultaneous achievement of
“sustainable society,” and “safety, security, and comfort.”
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
09
Corporate Strategy
Enhancing Our Business Foundation
The Mitsubishi Electric Group will aim to increase profitability in the main eight
businesses: power systems, transportation systems, building systems, factory
automation systems, automotive equipment, space systems, power devices and
air conditioning & refrigeration systems with committed basic measures such as
reflecting market needs and strengthening technological development. We will
promote research and development in the four fields of Life, Industry,
Infrastructure and Mobility in a balanced way in the short, medium and long term,
while strengthening the development of our proprietary compact artificial intelli-
gence (AI) technology, “Maisart,” and 5G-related technologies. In addition, we will
continue to proactively work on IP activities. Mitsubishi Electric has been within
the world’s top ten for six years in a row since 2014 and the top Japanese com-
pany for five years in a row* in terms of the number of applications for interna-
tional patents.
* Ranking of Patent Cooperation Treaty (PCT) applications by the World Intellectual Property Organization
(WIPO)
Transforming Business Models
The Mitsubishi Electric Group will accelerate the creation and development of
new business models and new businesses including renewal and maintenance
business, data-based business and platform business by concentrating all its
capabilities inside and outside of the Group and proactively leveraging open inno-
vation and other opportunities.
On April 1, 2020, the Group founded the Business Innovation Group to create
new business models beyond the existing framework and to drive and support
the creation of new businesses. Furthermore, we will invest about $100 million in
startups as part of open innovation and promote corporate venturing activities
across the Group. In addition, we will quickly create customer value from various
data with our integrated IoT, ClariSence*.
* ClariSence: Word coined by Mitsubishi Electric that means clarifying the hidden essence of information
sensed from equipment to resolve challenges
Sustainable Growth through Providing Solutions to
Social Challenges
The Mitsubishi Electric Group’s distinctive strengths lie in the following three
areas: 1) A wide range of technological assets such as controls and power elec-
tronics; 2) Activities in diverse businesses with different business features; and 3)
“Kaizen” (improvement) culture that has taken root in every field, including pro-
duction, quality management, sales, services, etc.
Fully utilizing these strengths, the Group has positioned the creation of value
toward providing solutions to challenges as the core of its growth strategies by
taking full advantage of Technology Synergies and Business Synergies, etc., in
the four fields with many social challenges.
The Four Fields
Having defined a social challenge category to which the Mitsubishi Electric Group
can contribute solutions by providing its products, systems, and services as a
“Field,” we will promote initiatives for value creation in the following four fields
where there are many social challenges: “Life” focusing on the daily lives of peo-
ple, “Industry” enabling creation of things necessary for life, “Infrastructure” pro-
viding the foundation for society, and “Mobility” connecting all of the fields
above-mentioned. By identifying the challenges and needs of society or each
customer and continuing to pursue their satisfaction through proposing and
implementing solutions, the Group will secure sustainable growth going forward.
Technology Synergies and Business Synergies
In promoting value creation, the Group will further unite all the capabilities, from
R&D to sales and service, inside and outside of the Group, and thereby create
Technology Synergies through optimal combinations of its strong technological
assets, which encompass a wide range of technological fields, as well as
Business Synergies through the collaboration of its diverse business activities.
Furthermore, the Group will strive to improve customer satisfaction and competi-
tive advantages by always checking business models, as well as reviewing and
transforming models to the better from a viewpoint of whether the Group is aware
of changes in the business environment, sufficiently meeting challenges and the
needs of customers, and fully leveraging its advantages.
Toward High-Quality Growth
In fiscal 2020, the Mitsubishi Electric Group achieved consolidated revenue of
4,462.5 billion yen and operating profit ratio of 5.8%. In addition, the Group
achieved ROE of 9.2% and a ratio of bonds and borrowings to total assets of
6.1% as of March 31, 2020. As for fiscal 2021, the earnings briefing dated May
11, 2020 expects a revenue of 4,100 billion yen and operating profit ratio of
2.9% in light of the impact of the COVID-19 pandemic in addition to external fac-
tors such as stagnant demand growth and exchange fluctuations, intensification
of the competitive environment and insufficient handling of price decreases and
other changes in the market environment. These estimations are below the
Growth Targets for fiscal 2021 set in fiscal 2015 (revenue of 5 trillion yen or more
and operating profit ratio of 8% or more). We believe that it is critical to assess
where we have achieved and where we have failed in the initial plan and make
use of the analysis results for management going forward.
10 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Formulating the Medium-term Management Plan towards fiscal 2026
The Mitsubishi Electric Group will create a new medium-term plan toward fiscal 2026, looking back at activities toward achieving Growth Targets for fiscal 2021.
Principles
In order to address diversifying social challenges, we will focus on strengthening our solutions business. We will also revise our business portfolio
to improve profitability and effectively utilize management resources, and enhance our business foundation.
Important
measures
1
2
3
4
Improving profitability of major business-
es by thoroughly implementing basic
operations such as capturing market
needs and strengthening technological
development.
Building and cultivating new business
models and new businesses that will
become the pillars of the next generation.
Identify unprofitable and less profitable
businesses, then reallocate resources to
high-profit and development businesses.
Pursue the optimal Group management
system, including function review of affili-
ated companies.
For New Lifestyles and Work Styles
The Mitsubishi Electric Group expects that the values related to life-
styles, way of working, way of doing business and other aspects of
the world will significantly change as measures to prevent the
spread of COVID-19 are implemented. We will incorporate these new
values into our way of working, reform business operations across
the Group, for example by a full-scale application of remote work
and online meetings, and establishing new ways of business, such
as marketing and transactions in the digital environment, at an early
date. In addition, we will devote all of our energy to respond to
changing demand and to resolve social challenges through providing
integrated solutions.
1. Work Style Transformation
Promote group wide work style transformation by enforcing remote work and fully leveraging online meeting tools.
Quickly establish the systems of marketing, commercial transactions, servicing and user
trainings in the digital environment to deal with rapidly changing values of humanity.
2. Providing Integrated Solutions to Current Social Issues
Respond to changing demand and address social challenges by uniting all the capabilities inside and outside of the Group.
Example
A Shift In The Way We Communicate
High expectations for
distant and unmanned systems
Increasing demand for
face-to-face online interactions
Rising awareness of
sanitation issues
Integrated Solutions
Distant
control
Cooperation
with Robots
Security
Infrared
sensors
Non-contact interface
(Speech recognition, etc)
Ventilation
control
…
AI/5G/IoT
Employee engagement, Information security, and Product and service quality
The Mitsubishi Electric Group will promote the realization of a work
environment where everyone can work with vitality; for example, by
encouraging workplace culture innovation and flexible and efficient
working styles, and by supporting career development through leave
programs that accommodate individual life plans. The Group will also
promote the strengthening of information security with a compre-
hensive multi-layer defense system and the building of a thorough
quality control system that complies with related laws and required
specifications.
Employee engagement
Realizing a work environment where all employees can work with vitality
• Transform the workplace culture by monitoring conditions
using engagement surveys and implementing various
measures based on the results
• Promote flexible and efficient working styles such as
• Support career development through leave programs that
accommodate individual life plans for those wishing to
study abroad or accompany their spouse on overseas
postings, etc.
remote work utilizing IT
• Secure human resources by expanding the evaluation
system for employees with advanced skills in AI and
other fields
• Systematically select and educate non-Japanese candi-
dates for core management positions at overseas bases
Information security
Product and service quality
Develop a comprehensive multi-layer
defense system
Provide the best products and services
with unsurpassed quality
• Strengthen and thoroughly implement intrusion preven-
• Build a thorough quality control system that complies with
tion, diffusion prevention, leak prevention, global
response, and document management
• In April 2020, establish the Information Security
Supervisory Office under the direct control of the
President
related laws and required specifications
• Further foster quality awareness within the Group, cen-
tered on education
Striving for Continuous Innovation
The Mitsubishi Electric Group will steadfastly carry out its management policies guided by a commitment to Balanced Corporate Management, while putting into practice
the concept behind its overarching corporate statement: Changes for the Better. Each and every employee will share the common goal of “Always improving” and “Always
delivering new value,” and the Mitsubishi Electric Group—by continuing to undergo transformation itself—will mature into a corporation that is always producing some-
thing better.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
11
At a Glance
Energy and Electric
Systems
Industrial Automation
Systems
Information and
Communication Systems
Revenue
Yen (billions)
Revenue
Yen (billions)
1,500
1,200
900
600
300
0
1,264
1,227
1,241
1,253
1,296
1,307
16
17
18
18
20
19
(Years ended March 31)
1,500
1,200
900
600
300
0
1,321
1,310
1,444
1,444
1,467
1,349
Revenue
Yen (billions)
1,500
1,200
900
600
300
0
561
447
436
438
426
455
16
17
18
18
20
19
(Years ended March 31)
16
17
18
18
20
19
(Years ended March 31)
U.S. GAAP
IFRS
U.S. GAAP
IFRS
U.S. GAAP
IFRS
Operating profit
Yen (billions)
Operating profit
Yen (billions)
Operating profit
Yen (billions)
200
160
120
80
40
0
50
44
51
16
17
18
65
18
82
82
20
19
(Years ended March 31)
200
160
120
80
40
0
190
187
159
140
142
68
16
17
18
18
20
19
(Years ended March 31)
200
160
120
80
40
0
14
16
12
17
11
18
11
18
26
12
20
19
(Years ended March 31)
U.S. GAAP
IFRS
U.S. GAAP
IFRS
U.S. GAAP
IFRS
MAIN PRODUCTS AND BUSINESS LINES
MAIN PRODUCTS AND BUSINESS LINES
MAIN PRODUCTS AND BUSINESS LINES
Turbine generators, hydraulic turbine generators,
nuclear power plant equipment, motors, transformers,
power electronics equipment, circuit breakers, gas
insulated switchgears, switch control devices, surveil-
lance-system control and security systems, transmis-
sion and distribution ICT systems, large display
devices, electrical equipment for locomotives and
rolling stock, elevators, escalators, building security
systems, building management systems, and others
Programmable logic controllers, inverters, servomo-
tors, human-machine interface, motors, hoists, mag-
netic switches, no-fuse circuit breakers, short-circuit
breakers, transformers for electricity distribution, time
and power meters, uninterruptible power supply,
industrial fans, computerized numerical controllers,
electrical discharge machines, laser processing
machines, industrial robots, clutches, automotive
electrical equipment, electric powertrain system, car
electronics and car mechatronics, car multimedia,
and others
Wireless and wired communications systems, net-
work camera systems, satellite communications
equipment, satellites, radar equipment, antennas,
missile systems, fire control systems, broadcasting
equipment, data transmission devices, network
security systems, information systems equipment,
systems integration, and others
Fiscal 2020 Topics
Mitsubishi Electric has been awarded a contract by the
Romanian Air Traffic Services Administration to supply an
airport Doppler LIDAR for wind observation in clear weather
(DIABREZZA™ A
Series) for Henri
Coand
International Airport.
Laser scanner
2019
The Air Conditioning Engineering Facility was completed at
the Shizuoka Works in Shizuoka, Shizuoka Prefecture, Japan
in May. This facility will shoulder further expansion of the air
conditioning system
business.
Mitsubishi Electric has developed the world's first*1 GaN-HEMT in
a multi-cell structure that bonded directly to a single-crystal dia-
mond heat-dissipating substrate with high thermal conductivity
in collaboration with the Research Center for Ubiquitous MEMS
and Micro Engineering, National Institute of Advanced Industrial
Science and Technology.*2
*1 According to Mitsubishi Electric
research as of September 2, 2019
*2 A part of this achievement is based on
results obtained from a project,
JPNP10022, commissioned by the
New Energy and Industrial Technology
Development Organization (NEDO).
Cell
Drain Pad
Source Pad
Gate Pad
Mitsubishi Electric's 160 kV high-voltage DC circuit breaker
prototype has passed the DC interruption test in a research
project carried out
by the European
Commission.
Mitsubishi Electric has started constructing a new plant of
Mitsubishi Electric Automotive India Pvt. Ltd., which manufac-
tures and sells automotive equipment in India. The plant is
scheduled to start operating in fiscal 2022.
Mitsubishi Electric has been awarded the top-rank Gold
Rating in CSR 2019 by EcoVadis, the France-based global
assessment agency.
12 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Electronic Devices
Home Appliances
Others
Revenue
Yen (billions)
Revenue
Yen (billions)
Revenue
Yen (billions)
1,500
1,200
900
600
300
0
211
186
202
202
199
208
16
17
18
18
20
19
(Years ended March 31)
1,500
1,200
900
600
300
0
982
1,004
1,049
1,049
1,074
1,090
16
17
18
18
20
19
(Years ended March 31)
1,500
1,200
900
600
300
0
707
713
764
659
676
659
16
17
18
18
20
19
(Years ended March 31)
U.S. GAAP
IFRS
U.S. GAAP
IFRS
U.S. GAAP
IFRS
Operating profit
Yen (billions)
Operating profit
Yen (billions)
Operating profit
Yen (billions)
200
160
120
80
40
0
16
16
8
17
14
18
14
18
1
8
20
19
(Years ended March 31)
200
160
120
80
40
0
63
69
56
78
55
59
16
17
18
18
20
19
(Years ended March 31)
200
160
120
80
40
0
23
16
23
17
23
18
24
18
24
26
20
19
(Years ended March 31)
U.S. GAAP
IFRS
U.S. GAAP
IFRS
U.S. GAAP
IFRS
MAIN PRODUCTS AND BUSINESS LINES
MAIN PRODUCTS AND BUSINESS LINES
MAIN PRODUCTS AND BUSINESS LINES
Power modules, high-frequency devices, optical
devices, LCD devices, and others
Procurement, logistics, real estate, advertising,
finance, and other services
Room air conditioners, package air conditioners,
chillers, showcases, compressors, refrigeration
units, air-to-water heat pump boilers, ventilators,
hot water supply systems, IH cooking heaters,
LED lamps, indoor lighting, LCD televisions,
refrigerators, electric fans, dehumidifiers, air
purifiers, cleaners, jar rice cookers, microwave
ovens, and others
Mitsubishi Electric and NEC have started joint validation for
the use of the fifth generation mobile telecommunication
method (5G) in the manufacturing industry. We carried out a
demonstration experiment of hybrid 5G e-F@ctory, which
uses the local 5G in
each plant and 5G for
collaboration between
plants and between
companies.
2020
Mitsubishi Electric has been awarded the top S rank in
CASBEE Wellness Office in addition to a top-level BELS 5 star
rating and Net Zero Energy Building (『ZEB』) for the Net Zero
Energy Building Test
Facility, which is sched-
uled to open in 2020 at
the Information
Technology R&D Center
in Kamakura, Kanagawa
Prefecture, Japan.
Mitsubishi Electric' New Satellite Production Facility was
completed at the Kamakura Works in Kamakura, Kanagawa
Prefecture, Japan in February. This facility allows us to
assemble and test
satellites at a single
location.
One of Mitsubishi Electric's subsidiaries, Mitsubishi Elevator
India Private Limited, has secured a major order for 64 elevators
in total, including 48 of a model that is exclusive to the Indian
market, from the “All India Institute of Medical Science (AIIMS) ,
Bilaspur, Himachal Pradesh,” an Indian gov-
ernment-owned medical facility that houses a
hospital and a national medical institute.
Mitsubishi Electric has delivered two Diamond VisionTM large
video screens, three Ribbon Board wide displays, and 43
digital signages to Sanga Stadium by KYOCERA in Kameoka,
Kyoto Prefecture, Japan.
Mitsubishi Electric has been ranked second globally and first
among Japanese firms in terms of international patent appli-
cations filed in 2019, according to an announcement
released by the Switzerland-based World Intellectual Property
Organization (WIPO).
2
5
1
5
1
4
1
4
1
2
1
2
2,053
2,521
2,812
2,661
1,593
1,593
4
1,313
12
2013
2014
2019
Total applications Among global firms Among Japanese firms
2018
2015
2017
2016
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
13
©CHIBA LOTTE MARINES
Review of Operations
Energy and Electric
Systems
Revenue Breakdown by Business Segment
Next-generation SiC Inverter for Railcars
25.8%
Revenue
¥1,307.3billion
up 1% year on year
Operating Profit
¥82.3billion
down ¥0.1 billion year on year
The market of the social infrastructure systems business
saw buoyant investment in the public utility for preventing
and reducing disaster risks in Japan, also buoyant invest-
ment in train system business worldwide, and continued
demand in the power systems in Japan due to the electrici-
ty system reform. In this environment, the business saw an
increase in orders from the previous fiscal year due primar-
ily to an increase in the power systems business worldwide
and the public utility and transportation systems businesses
in Japan. Revenue for this business remained substantially
unchanged from the previous fiscal year due mainly to a
decrease in thermal power generation business worldwide
despite an increase in orders.
The market of the building systems business saw
decreased demand for high-end, large-scale office projects
in China, continued market stagnation in the Middle East,
and an increase in renewals of elevators and escalators in
Japan. In this environment, the business saw a decrease in
orders from the previous fiscal year due primarily to market
stagnation in China and the Middle East. Revenue for this
business remained substantially unchanged from the previ-
ous fiscal year due mainly to an increase in new installa-
tions of elevators and escalators in Japan, mainly in the
Tokyo metropolitan area despite a decrease in orders.
As a result, revenue for this segment increased by 1%
from the previous fiscal year to 1,307.3 billion yen.
Operating profit decreased by 0.1 billion yen from the
previous fiscal year to 82.3 billion yen, due primarily to the
yen appreciating against other currencies and a shift in
project portfolios.
Mitsubishi Electric has developed and provided a
traction inverter for railcars that incorporates silicon
carbide (SiC), a new type of semiconductor. This new
inverter, with its energy-efficient, compact, lightweight,
low-maintenance, and low-noise design, contributes to
play a major role in next-generation railcar propulsion
systems.
Large-scale Visual Information System
Offerings in the Mitsubishi Electric Group’s lineup of
large-scale visual information systems boast Diamond
VisionTM—a technology that helps fuel audience
excitement in such venues as stadiums—along with
cutting-edge information distribution platforms that
employ the internet and data broadcasting. As such,
the Group provides visual information systems that
enrich people’s lives in various ways.
Power Plants
Mitsubishi Electric provides power system equipment
for various power plants, which play a major role in
power supply and are required to further reduce
environmental impact. With high efficiency turbine
generators and instrumentation control systems that
combine advanced network and measurement
technologies, Mitsubishi Electric power plants realize
improved reliability and cost efficiency.
Transmission & Distribution Systems
Transmission and distribution facilities are essential
parts of the electricity supply infrastructure, and to
ensure stability their components must meet stringent
requirements for reliability, functionality and perfor-
mance. Satisfying customer needs for sophisticated
solutions, Mitsubishi Electric boasts a broad lineup of
high-quality products that support such facilities.
NEXIEZ Machine-room-less Elevators
Compact, lightweight, and energy-saving, NEXIEZ
machine-room-less elevators are the global flagship
product. They are widely used throughout the world,
mainly in low- to mid-rise buildings. Models designed
with various functions and features for specific regions
are also available to meet the preferences and custom-
er needs of each region.
Series Z Escalators
The Z-Series escalators offer enhanced safety through
several features that ease stepping on/off and help pre-
vent clothing from getting caught, so that passengers of
all ages, from small children to the elderly, can use the
escalators safely. They also offer a higher level of ener-
gy conservation by providing optional features such as
VVVF inverters. Environmentally friendly, people-friendly,
and beautiful, the Z-Series show the future of escala-
tors.
14 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Industrial Automation
Systems
Revenue Breakdown by Business Segment
Programmable Logic Controllers
26.6%
Revenue
¥1,349.4billion
down 8% year on year
Operating Profit
¥68.9billion
down ¥73.6 billion year on year
The market of the factory automation systems business
saw continued stagnation in demand for automotive-re-
lated investments worldwide, semiconductor and
machinery-related investments in Japan, and invest-
ments related to organic light emitting diodes (OLED)
and smartphones outside Japan. In this environment,
the business saw decreases in both orders and revenue
from the previous fiscal year due primarily to the yen
appreciating against other currencies and a decrease in
sales of factory automation devices, processing
machines and numerical controllers.
The market of the automotive equipment business
saw a slowdown in demand for new cars worldwide and
the impact of COVID-19 becoming actual in the fourth
quarter, while the market of electric-vehicle related
equipment expanded worldwide. In this environment, the
business saw decreases in both orders and revenue
from the previous fiscal year due mainly to a decrease in
sales of electrical components and the yen appreciating
against other currencies, while sales of electric-vehicle
related equipment such as motors and inverters
increased.
As a result, revenue for this segment decreased by
8% from the previous fiscal year to 1,349.4 billion yen.
Operating profit decreased by 73.6 billion yen from
the previous fiscal year to 68.9 billion yen due primarily
to a decrease in revenue, a shift in product mix and
upfront investment for growth drivers.
Mitsubishi Electric’s MELSEC series of programmable
logic controllers supports a wide array of production
and social infrastructure applications; solutions range
from control and safety devices to information and
instrumentation management. As a leading global
brand, the MELSEC series contributes to the
construction of cutting-edge control systems owing to
its capabilities, performance, product variety, and high
reliability.
AC Servos
The MELSERVO Series enhance all aspects of
production devices and facilities. From rotary servo
motors to linear servo motors and direct drive motors,
a wide range of products is available to meet any
number of applications and to significantly improve the
performance of all relevant devices.
Computerized Numerical Controllers—CNCs
A broad range of CNCs is available, including, for
example, the M800/80 Series, which increases
productivity and precision and optimizes machine tool
operation through an independently developed
dedicated CPU and abundant control functions. It is also
compatible with the various field networks that are
necessary for constructing automation systems.
Electric Power Steering
(Motors and Controllers)
Mitsubishi Electric was the first company in the world to
mass produce motors and controllers for electric power
steering to assist driver steering in line with driving
conditions. Over the years, Mitsubishi Electric has
helped to improve steering feel, response, and stability
while delivering compact units and high-output
performance, and contributing to reduced automobile
CO2 emissions.
Car Navigation System
The DIATONE SOUND. NAVI car audio-navigation system
eliminates the slight noise generated by audio devices
and transmits sounds in full detail. In addition, it
provides high-speed multi-task processing, fast
responsiveness when searching and scrolling and
beautiful images on the map screen and in video
playback.
Motors and Inverters for Electric
Motor Vehicles
Motors for both driving/power-generating, as well as
for inverters that control the motors, which are mounted
in electric vehicles, such as hybrid cars.These products
contribute to the improvement of vehicle fuel efficiency
and comfort; for example, through idle stop and start,
energy regeneration during deceleration, or torque
assistance during acceleration.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
15
Review of Operations
Information and
Communication Systems
Revenue Breakdown by Business Segment
Cybersecurity Services
9.0%
Revenue
Operating Profit
¥455.5billion
up 7% year on year
¥26.4billion
up ¥14.2 billion year on year
The market of the telecommunications systems busi-
ness saw buoyant investment by telecommunications
carriers to deal with increased traffic caused mainly by
the expanding 5G communications networks. In this
environment, the business saw increases in both orders
and revenue from the previous fiscal year due primarily
to increased demand for communications infrastructure
equipment.
The market of the information systems and service
business saw increased demand relating to the cloud
utilization, the enhancement of cyber-security and the
improvement of work efficiency. In this environment, the
business saw increases in both orders and revenue from
the previous fiscal year due mainly to an increase in the
system integrations business.
The electronic systems business saw an increase in
orders from the previous fiscal year due primarily to an
increase in large-scale projects for the space systems
business. The revenue also increased from the previous
fiscal year due mainly to an increase in large-scale proj-
ects for the defense systems business.
As a result, revenue for this segment increased by
7% from the previous fiscal year to 455.5 billion yen.
Operating profit increased by 14.2 billion yen from
the previous fiscal year to 26.4 billion yen due primarily
to an increase in revenue and a shift in project portfoli-
os.
Mitsubishi Electric provides a one-stop service that
encompasses operation outsourcing, from security
diagnostics, risk assessment through security level
maintenance, as well as company-wide security
measures.
(Mitsubishi Electric Information Systems Corporation)
Information System Integrated Control
Center
Specialist engineers are available 24/7 to remotely
operate and monitor client information systems and to
analyze and determine any problem that might occur
using automated tools, enabling a rapid response to
any system malfunction.
(Mitsubishi Electric Information Network Corporation)
DS2000 Standard Satellite Platform
The DS2000 is a standard satellite platform modeled
after JAXA’s ETS-VIII. It meets the need for high-
quality, low-cost satellites with shortened delivery
times. It has already been adopted for use by Japan
and other countries; more than ten satellites currently
in orbit use it. It will eventually be incorporated into
JAXA’s Engineering Test Satellite 9, which is being
launched in response to the need for high-throughput
communications satellites.
Airport Doppler Lidar
Our Airport Doppler Lidar radar can measure wind
speed and wind direction in real time even when the
weather is fine by catching the movement of aerosol
and other fine particles in the atmosphere with
a coherent laser. Therefore, it is useful in preventing
turbulence accidents during takeoff and landing.
This radar is already in operation at major airports
across the world and is currently scheduled to be
deployed at multiple airports.
Broadband Optical Access Systems
Mitsubishi Electric is progressively installing Gigabit
Ethernet Passive Optical Network (GE-PON) systems,
which play a central role in broadband services. The
need for GE-PON systems is steadily expanding due to
high-capacity broadband content, including the
increased use of visual services.
Network Camera System
This Network Camera System meets the expanding
range of needs for video surveillance systems, which is
achieved through new digital technology incorporated
into its high-resolution megapixel camera and its high
level of scalability, which can accommodate even
large-scale systems.
16 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Electronic Devices
Revenue Breakdown by Business Segment
Power Semiconductor Modules
4.1%
Revenue
Operating Profit
¥208.7billion
up 4% year on year
¥8.7billion
up ¥7.2 billion year on year
The market of the electronic devices saw emerging
demand relating to 5G communications networks and
next-generation data centers, and accelerated develop-
ment and market launches of electric vehicles. In this
environment, the business saw an increase in orders
and revenue also increased by 4% from the previous fis-
cal year to 208.7 billion yen due primarily to increased
demand for high frequency and optical devices, particu-
larly for optical communication devices, and power
modules used in automotive applications.
Operating profit increased by 7.2 billion yen from the
previous fiscal year to 8.7 billion yen due mainly to an
increase in revenue and a shift in product mix.
Our power semiconductor modules help reduce the power
consumption of power electronics equipment such as
home appliances, motion control, renewable energy, power
supplies, power transmission, traction, and automobiles.
The product lineup includes DIPIPM, IGBT modules and
IPM, and contributes to global environmental innovation.
SiC* Power Semiconductor Devices
With a significantly lower power loss than Si and capa-
bilities that include the enabling of high-speed switch-
ing operations and high-temperature operation among
others, the SiC power device significantly reduces the
power consumption of every type of power electronics
equipment such as home appliances, industrial equip-
ment, traction, and automobiles and contributes to the
realization of both a low-carbon society and an affluent
lifestyle in a sustainable future.
Optical Devices for Optical Communication
The product is optimal in using for all types of optical
fiber communication facilities which are used in base
stations for 5G, the fifth-generation mobile communica-
tion system whose deployment is expected to spread in
full swing from 2020 onward, and also used in large-
scale datacenters and other equipment that support the
transition to cloud computing. This product lineup con-
tributes to faster speeds, greater capacity and transmis-
sion distance, and equipment size reduction.
GaN* High Frequency Devices
GaN promises to provide higher efficiency, higher output
and wider bandwidth than Si. By employing GaN tran-
sistors, GaN high frequency devices contribute to faster
communication speeds, increased information trans-
mission volume, and smaller power amplifiers for base
transceiver station networks in fifth generation mobile
communication systems (5G) and earth stations in sat-
ellite communication systems (SATCOM).
Thermal Diode Infrared Sensor MelDIR*
With a larger pixel count and higher temperature-
resolution, MelDIR obtains more detailed thermal
images, distinguishes people from objects, and enables
the identification of specific human behavior. MelDIR
can be implemented into a wide range of applications
including security, air conditioning, temperature
measuring, surveillance, head-counting solutions, and
smart buildings.
TFT-LCD Modules
Being highly vibration-resistant and possessing a wide
operating temperature range, and a high-level display
performance including a super-wide viewing angle and
super-high brightness and contrast, the TFT-LCD mod-
ule supports a wide range of industrial instruments such
as construction machines used in harsh environments
and those for outdoor use. The product lineup includes
high value added products such as a touch panel
mounted, a transflective, with a NFC* antenna, and an
automotive grade.
* SiC: Silicon carbide, compound of silicon and
carbon at a ratio of 1:1
*GaN: Gallium nitride
* MelDIR: Mitsubishi Electric Diode InfraRed
sensor
*NFC: Near Field Communication
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
17
Review of Operations
Home Appliances
Revenue Breakdown by Business Segment
Air Conditioning & Refrigeration Systems
21.5%
Revenue
¥1,090.2billion
up 2% year on year
Operating Profit
¥78.2billion
up ¥18.7 billion year on year
The market of the home appliances saw a heightened
awareness of environmental issues causing increased
demand of ductless air conditioners in North America
and heat-pump hot water and heating systems in
Europe. The demand for industrial air conditioners for
schools also increased in Japan. In this environment, the
business saw an increase in revenue by 2% from the
previous fiscal year to 1,090.2 billion yen due primarily
to an increase in sales of air conditioners for Japan,
North America and Europe.
Operating profit increased by 18.7 billion yen from
the previous fiscal year to 78.2 billion yen due mainly to
an increase in revenue and cost improvement.
In addition to KIRIGAMINE room air conditioners,
Mitsubishi Electric offers an extensive lineup of prod-
ucts with applications extending from stores, offices,
and buildings to factories and industrial facilities while
featuring environmentally compatible, energy-saving
technologies. These qualities allow Mitsubishi Electric
to meet air conditioning needs globally.
Home Equipment
Mitsubishi Electric offers energy-saving home environ-
ments using highly efficient air conditioners and ventila-
tors, water heaters and cooking equipment. Create a
comfortable living environment for the whole family.
Home Appliances
Mitsubishi Electric develops home appliances by incor-
porating its unique technologies and perspectives so
that its products can be used in various scenes of daily
life, such as the kitchen, living room, and bedroom.
Efforts are made to develop products that contribute to
making life more comfortable for users, meeting and
even surpassing their expectations.
Lighting Fixtures and Light Bulbs
Mitsubishi Electric offers an extensive lineup of
high-efficiency, long-lasting LED products that meet
diverse needs for energy-saving light bulbs and
equipment in households, stores, offices, and
factories. The company’s LED products make the
future brighter for families and society as a whole.
Visual Equipment for Public
and Business Applications
Mitsubishi Electric’s high-quality image processing
technologies deliver exceptionally sharp images with
superior color reproduction and are incorporated in a
wide range of products developed to suit a variety of
application needs. These systems are being used in
Japan and abroad for large-screen applications, such
as digital signage used to display images, data, and
information at public facilities and other venues.
Recycling Consumer Electronics
and Home Appliances
Mitsubishi Electric has developed technologies for
automatically sorting the three major types of plastic
(polypropylene (PP), polystyrene (PS), and
acrylonitrile-butadiene-styrene (ABS)) used in con-
sumer electronics and home appliances. This original
recycling system is being utilized to promote the reuse
of plastics in the company’s products by improving the
physical properties of the sorted materials.
Customers
Consumer electronics
and home appliances
Used products
Mitsubishi Electric Corporation
Hyper Cycle Systems Corporation
Materials
manufacturers
Metals and glass
Original
recycling system
Simple
plastics
Plastic
PP, PS, ABS
Mixed plastics
Green Cycle Systems Corporation
18 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Research and Development
Basic Policy on Research and Development
As the cornerstone of its growth strategy, the Mitsubishi
Electric Group will promote short-, medium-, and long-
term R&D themes in a balanced manner.
In addition to promoting research and development
toward strengthening current businesses and achieving
innovation, and continuous development of common
basic technologies, the Company is striving to evolve
technology and business synergies to provide integrated
solutions that will solve increasingly diverse social
issues, while also working to realize sustainable growth
through the development of future technologies.
Furthermore, the Company will promote enhance-
ment of efficiency of development and creation of new
value, through proactive utilization of open innovation in
collaboration with universities and other external R&D
institutions.
During fiscal 2020, the total R&D expenses for the
entire Group have amounted to 206.8 billion yen (3%
decrease compared to the previous fiscal year).
Representative achievements are as follows.
R&D policy
Well balanced short-, mid- and long-term R&D
External
technologies/entities
Open Innovation
Realizing sustainable growth through
the development of future technologies
Backcasting
Future society
Evolving technology and business synergies
to provide integrated solutions
Promoting development toward
strengthening current businesses
and achieving innovation
Short-
term
Mid-
term
(4Ys-)
Long-
term
(10Ys-)
Developing common basic technologies that are the source
of competitive advantages, on a continuous basis
SDGs: “Sustainable Development Goals” adopted by the United Nations as goals to achieve towards 2030
Society 5.0: It is contained in the 5th Science and Technology Basic Plan approved by the Government of Japan in Jan. 2016.
Major R&D Achievements in Fiscal 2020
Development of New Technology Controls In-Building Mobilities and
Facilities, Supported with Building Dynamic Maps
In recent years, with the aim of improving added value of buildings, studies have
been underway to reduce the workloads of building-management personnel
through the use of in-building mobile robots for cleaning, security, deliveries, and
guidance, as well as to realize safe and secure movement within buildings by
users of personal mobility devices, including next-generation electric wheelchairs.
The Company has developed a technology for controlling in-building mobile
robots as well as personal mobility devices, using building dynamic maps*1 to
achieve cooperative interaction between the robots, etc. and building facilities,
such as elevators and access control systems. In addition, the Company has built
systems that work with animated lighting guidance systems*2.
This supports the safe, effi-
cient movement of people and
In-Building Mobilities in buildings,
thereby reducing the workloads
of building-management person-
nel and realizing smart buildings*3
in which people and robots coex-
ist safely.
Example: Animated lighting indicates movements of the
service robot
*1 A new three-dimensional map for buildings that shows the status of building facilities (e.g. elevators
and access control systems), location of mobility devices and passable route
*2 The animated lighting guidance system “Terasu Guide” (released April 2020) that allows facility users to
intuitively understand guidance and warning with lighting animations projected on the floor
*3 Buildings in which advanced IoT is deployed to energy-saving and labor-saving work environments
through the building
Development of Compact AI Knowledge Representation and Reasoning
Solution for Human-Machine Interfaces
Devices with complex features, such as home appliances and car navigation sys-
tems, require humans to understand how they operate and devise controls.
However, in recent years, AI that supports operation of such devices by using big
data on the cloud has become widespread. On the other hand, there is a growing
need to complete information processing on stand-alone devices without com-
munication with external devices, in order to enhance response speed.
The Company has developed the Compact AI Knowledge Representation and
Reasoning Solution for HMI (human-machine interfaces) based on its proprietary
AI technology “Maisart*,” which enables devices to understand vague user com-
mands through the reasoning of missing information, according to the situation.
It achieves this by means of a “knowledge graph” which integrates user infor-
mation, device specification and functionality and external information, and will
allow responsive and easy-to-use human-machine interfaces to be embedded in
stand-alone consumer products such as home appliances and car navigation
systems.
In the morning
after returning home
In the evening
Actor “A”
Actor “A”
Okay, I will
record
program “X”
starring “A”
Okay,
I will play
the recorded
program “X”
starring “A”
Compact AI in TV set
Compact AI in TV set
AI infers “Record program X”
since the program “X” stars
“A”, who mother likes
AI infers “Play X” since
program “X” starring “A” is
already recorded
Example: The TV’s AI integrates necessary information according
to the situation and understands ambiguous commands.
* Mitsubishi Electric’s AI creates the State-of-the-ART in technology
Mitsubishi Electric’s AI technology brand aimed at making every device smarter
For labor-saving building management and smart buildings
where people and robots coexist safely
The device understands ambiguous commands from people
for quick operations.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
19
businesses (in 2019) announced by the World Intellectual Property
Organization (WIPO).
In conjunction with creating a patent network, we are also actively pursuing
activities toward acquiring design rights in Japan and overseas, to protect both
the functional and design aspects of our technologies.
Annual Trends in Overseas Patent Applications
by the Mitsubishi Electric*1
(Number of Applications)
6,000
5,000
4,000
3,000
2,000
1,000
0
2017
2018
2019
2020
(FY)
■■ USA
■■ Europe
■■ China
■■ Others
*1 Starting in FY2019, we began using the number of overseas patent applications of
Mitsubishi Electric as a single entity.
Respecting IP Rights
The Mitsubishi Electric Group firmly recognizes the importance of mutually
acknowledging and respecting not only its own intellectual property rights but
the intellectual property rights of others as well. This stance is clearly set forth
in the Mitsubishi Electric Group Conduct Guidelines and practiced throughout
the Group.
Any infringements on the IP rights of others not only violate the Code of
Corporate Ethics and Compliance, but also have the potential to significantly
impair the Group's continued viability as a going concern. The resulting poten-
tial impairments include being obliged to pay significant licensing fees or being
forced to discontinue the manufacture of a certain product.
In order to prevent any infringement on the IP rights of others, various edu-
cational measures are provided mainly to engineers and IP officers, to raise
employee awareness and promote greater respect for the IP rights of others. At
the same time, a set of rules has been put in place to ensure that a survey of
the patent rights of others is carried out at every stage from development to
production, and is strictly enforced throughout the entire Group.
The Mitsubishi Electric Group also works diligently to prevent any infringe-
ment on its IP rights by others. In addition to in-house activities, we place par-
ticular weight on collaborating with industry organizations while approaching
government agencies both in Japan and overseas as a part of a wide range of
measures to prevent the counterfeiting of our products.
Intellectual Property
Protection of Intellectual Property Rights
Basic Policy
The proper protection of intellectual property (IP) rights promotes technological
progress and sound competition, and also contributes to realizing affluent life-
styles and the development of society.
The Mitsubishi Electric Group recognizes that intellectual property (IP) rights
represent a vital management resource essential to its future and must be pro-
tected. Through integrating business, R&D, and IP activities, the Group is pro-
actively strengthening its global IP assets, which are closely linked to the
Group's business growth strategies and contribute to both business and soci-
ety, and also working on protecting IP rights.
Structure of the Intellectual Property Division
The IP divisions of the Mitsubishi Electric Group include the Head Office IP
Division, which is the direct responsibility of the president, and the IP divisions
at the Works, R&D centers, and affiliated companies. The activities of each IP
division are carried out under the executive officer in charge of IP at each loca-
tion. The Head Office IP Division formulates strategies for the entire Group, pro-
motes critical projects, coordinates interaction with external agencies including
patent offices, and is in charge of IP public relations activities. At the Works,
R&D center, and affiliated company level, IP divisions promote individual strate-
gies in line with the Group's overall IP strategies. Through mutual collaboration,
these divisions work to link and fuse their activities in an effort to develop more
effective initiatives.
Integrating Business, R&D and IP Activities
Integration
IP Network
IP/Standardization Strategy
IP Division at Headquarters
Business Strategy
IP Departments
Business Groups, Facilities, Affiliates
Development Strategy
R&D Centers
IP Departments
Global IP Strategy
The Mitsubishi Electric Group identifies critical IP-related themes based on its
mainstay businesses and important R&D projects, and is accelerating the glo-
balization of IP activities also by filing patents prior to undertaking business
development in emerging countries where an expansion of business opportuni-
ties is expected. Furthermore, resident officers are assigned to Mitsubishi
Electric sites in the United States, Europe, China, and Southeast Asia to take
charge of IP activities and strengthen the IP capabilities of business offices,
R&D centers, and affiliated companies in each country. Through these initia-
tives, we strive to create a robust global patent network.
As an indication of the Mitsubishi Electric Group's IP capability and global IP
activities, the company ranked No.2 in Japan in terms of the number of patent
registrations (in 2019) announced by the Japan Patent Office (JPO), and No.2
in the world in terms of Patent Cooperation Treaty (PCT) applications by
20 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
CSR at
Mitsubishi Electric Group
22
24
31
33
39
CSR Management
G:Governance
E:Environment
S:Social
ESG Information Disclosure List
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
21
CSR at Mitsubishi Electric Group
CSR Management
Principles of CSR
The Mitsubishi Electric Group regards its corporate social responsibility (CSR) initiatives as the foundation of its corporate management, and upholds its Corporate
Mission and Seven Guiding Principles as the basic policies of its CSR. Particularly with respect to initiatives related to ethics and legal compliance, Group-wide efforts
are made to enforce measures such as enhancing training and strengthening internal controls. Active measures are also taken to ensure and improve quality assur-
ance, environmental preservation activities, philanthropic activities, and communication with stakeholders.
Mitsubishi Electric Group's stakeholders
To achieve sustainable growth, the Mitsubishi Electric Group must maintain communication with its various stakeholders. We have a corporate social responsibility to
incorporate the expectations, requests, and opinions of each stakeholder into our corporate activities, and to increase our positive effect on society while reducing any
negative effects.
To help maintain communication with stakeholders, we have established "Four Satisfactions" as a management policy, with the aim of satisfying all of our stakehold-
ers, including society, customers, shareholders, and employees.
Stakeholders of the Mitsubishi Electric Group
Pursue the Satisfaction of the Four Stakeholder Categories
Promotional System for CSR
The policies and planning for the CSR activities of the Mitsubishi Electric Group
are decided by a CSR Committee appointed by Mitsubishi Electric’s executive
officers. The Committee is composed of the heads of Mitsubishi Electric’s man-
agement departments (21 members in charge of environmental, social and gov-
ernance aspects from divisions such as Corporate Strategic Planning and
Corporate Human Resources), and discusses the results of activities performed
during the previous fiscal year, decisions on future activity plans, and responses
to law amendments, from a perspective that spans the entire Mitsubishi Electric
Group. The details of CSR Committee meetings are reported to senior execu-
tives through the Executive Officers’ Meeting and the Audit Committee.
Knowing that CSR activities are directly linked to corporate management,
each department responsible for ethics and legal compliance, quality assurance
and improvement, environmental conservation and philanthropy activities, and
communication with stakeholders implements their own initiatives, based on the
CSR policy of the Mitsubishi Electric Group.
In addition to the CSR Committee that is generally held once a year, various
activities are also promoted and implemented in communication with the CSR
Expert Committee and CSR Business Promotion Committee, which are con-
vened as a forum for sharing and executing the policies and plans established
by the CSR Committee.
Main agenda of the CSR Committee (held in April 2020)
• Report on achievements made in the previous fiscal year and activities
planned in the current fiscal year
• Response to the sustainable development goals (SDGs)
• Further enhancement information disclosure that takes into
account ESG (environment, social, governance) investment
• Human rights initiatives
• Response to TCFD
CSR Promotion System
22 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
CSR Materiality
Considering requests from the Global Reporting
Initiative (GRI)*, social trends and the business envi-
ronment, in fiscal 2016 the Mitsubishi Electric Group
identified CSR materiality and targets / Key
Performance Indicators (KPI) to fulfill the materiality
towards realizing the further integration of CSR with
management and the long-term advancement of
CSR initiatives.
We will implement activities to continuously
improve our performance related to CSR materiality,
initiatives, and targets / Key Performance Indicators
(KPI) based on the PDCA (Plan-Do-Check-Action)
Cycle approach.
* An international body that proposes shared global guidelines for
corporate sustainability reporting
Focusing on the SDGs
In fiscal 2019, we decided on goals that we would
address on a priority basis to further contribute to
the SDGs.
As a result of an internal and external survey to
confirm SDGs that they have high expectations for
contribution by the Mitsubishi Electric Group, which
was conducted in the course of developing the
goals, it was found that they expect us to contrib-
ute more through business activities. We decided
to address energy, infrastructure and the environ-
ment on a priority basis to further contribute to the
SDGs as these are the areas where all the busi-
nesses of the Group are involved in and the Group
will further focus on them.
◦Goal 7: Affordable and Clean Energy
◦Goal 11: Sustainable Cities and Communities
◦Goal 13: Climate Action
By further promoting initiatives to create value
for these goals to which we can contribute signifi-
cantly as a comprehensive electrical and electron-
ics manufacturer, we will make a specific
contribution to achieving the SDGs.
In doing this, the Mitsubishi Electric Group will
integrate the concept of the SDGs into its manage-
ment strategy and contribute to the SDGs that we
will prioritize through the CSR materiality initiatives
of "Realize a Sustainable Society," and "Provide
Safety, Security, and Comfort."
CSR materiality
Reasons why is it important
CSR Materiality and SDGs
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
23
CSR at Mitsubishi Electric Group
G: Governance
Corporate Governance
Basic Corporate Governance Policy
While maintaining the flexibility of its operations and promoting management transparency, Mitsubishi Electric, as a Company with Three-committee System, works to
strengthen the supervisory functions of management with the goal of realizing sustained growth. Our fundamental policy is to build and improve a corporate structure that
is more able to meet the expectations of society, customers, shareholders, employees and all of its stakeholders while endeavoring to further increase corporate value.
Corporate Management and Governance Structure
Corporate Management Structure
In June 2003, Mitsubishi Electric became a Company with Three-committee
System. Key to this structure is the separation of supervisory and executive func-
tions; the Board of Directors plays a supervisory decision-making role and
Executive Officers handle the day-to-day running of the Company.
A salient characteristic of Mitsubishi Electric’s management structure is that
the roles of Chairman of the Board, who heads the supervisory function, and the
President & CEO, who is head of all Executive Officers, are clearly separated.
Additionally, neither is included among the members of the Nomination and
Compensation Committees. The clear division of supervisory and executive func-
tions allows the Company to ensure effective corporate governance.
The present Board of Directors is comprised of twelve members (five of whom
are Outside Directors, one of whom is a woman), who objectively supervise and
advise the Company’s management by executing their duties based on the objec-
tives and authority of the Companies Act, as well as by delegating to Executive
Officers the decision authority for executing all operations, except the matters
listed in the items of paragraphs 1 and 4 of Article 416 of the Companies Act.
The Board of Directors has three internal bodies: the Nomination, Audit and
Compensation Committees. Each body has five members, the majority of whom
are Outside Directors, who are chosen by the Board of Directors taking into
account the experience and specialties of each person. Each Committee under-
takes its duties based on the objectives and authority of the Companies Act.
The bureaus have been established for the Board of Directors and each of the
Committees to support directors. The Audit Committee is supported by dedicated
independent staff.
Corporate Governance Framework
Executive Officers make decisions about the execution of operations on mat-
ters delegated by the Board of Directors within the range of duties allocated to
each Executive Officer based on the objectives and authority of the Companies
Act, and then execute such operations. Important items among such matters del-
egated by the Board of Directors are deliberated and decided upon in Executive
Officers’ meetings attended by all Executive Officers.
Internal Control System
(1) For the execution of the duties of the Audit Committee, its independence is
secured by assigning employees whose job is exclusively to assist the Audit
Committee members. In addition, internal regulations regarding the processing
of expenses and debts incurred in the execution of the duties of the Audit
Committee members are established and such expenses and debts are prop-
erly processed.
A system for reporting to the Audit Committee is developed to report infor-
mation about the Company and its subsidiaries to the Audit Committee via the
divisions in charge of internal control, and an internal whistle-blower system is
developed and its details are reported to the Audit Committee members.
Furthermore, the Audit Committee members attend important meetings
including Executive Officers’ meetings and conduct investigations such as
interviews with Executive Officer and the executives of the Company’s offices
and subsidiaries, and undertake deliberations to determine audit policies,
methods, implementation status, and results of the audit by regularly receiving
reports from the Independent Auditor and Executive Officers in charge of
audits.
Report
General Shareholders’ Meeting
Report
Appointment
Appointment/Dismissal/Supervision/Delegating
the decision authority for executing all operations
Report
Decision Making and Execution
Executive Officers
President & CEO
Executive Vice President
Senior Vice Presidents
Executive Officers
Business/Administration Divisions
Supervision
Board of Directors
Chairman
s
r
o
t
c
e
r
i
D
Nomination Committee
Outside Directors (majority)
Audit Committee
Outside Directors (majority)
Compensation Committee
Outside Directors (majority)
24 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
(2) Internal regulations and systems to ensure the properness of operations within
the Mitsubishi Electric Group are established. Executive Officers take responsi-
bility for constructing such systems within the areas over which they are
appointed. Important matters are deliberated by convening Executive Officer
meetings.
Executive Officers regularly monitor the status of management of the sys-
tems. The divisions in charge of internal control monitor the status of design
and management of internal control system and regulations. Also an internal
whistle-blower system is developed and its details are reported to the Audit
Committee members.
Furthermore, the status of management of the system is audited by internal
auditors, and the audit results are reported regularly to the Audit Committee
via Executive Officers in charge of audit.
Audit Committee
1. Organization, members, and procedures of the Audit Committee
The Audit Committee is made up of five directors, three of whom are outside
directors. The Committee audits the legality, adequacy, and efficiency of the
execution of the duties by directors and Executive Officers and creates an
audit report to be submitted to the shareholders’ meeting with its resolution.
Masahiko Sagawa, member of the Audit Committee, has long years of
experience in the accounting and financial operations of the Company and its
affiliates. Kazunori Watanabe, a member of the Audit Committee, is a Certified
Public Accountant and has a considerable degree of knowledge about finance
and accounting.
The Audit Committee has four dedicated staffers who take direct orders
from Audit Committee members and support them in executing their duties.
2. Frequency of the Audit Committee meeting and attendance of each Audit
Committee member
In fiscal 2020, Mitsubishi Electric held the regular Audit Committee meeting
basically once a month (and one special meeting). One meeting took about two
hours. The attendance of each Audit Committee member is as shown below.
Title
Name
Attendance/meetings
Attendance rate
Director (full-time) Akihiro Matsuyama
13/13
Director (full-time) Masahiko Sagawa
13/13
Outside director
Hiroshi Obayashi
13/13
Outside director
Kazunori Watanabe
13/13
Outside director
Takashi Oyamada
11/11
100%
100%
100%
100%
100%
Notes: 1. Out of the above members, Akihiro Matsuyama and Masahiko Sagawa are responsible for inves-
tigation.
2. Because Takashi Oyamada was appointed as an outside director on June 27, 2019, his atten-
dance after his appointment is shown.
3. Akihiro Matsuyama retired on June 26, 2020.
3. Activities of the Audit Committee members
The Audit Committee members–mainly those responsible for investigation
(full-time Audit Committee members)–attend Executive Officers’ meetings and
other such important conferences, and conduct interviews and surveys of
Executive Officers and the executive staff of Mitsubishi Electric offices and
affiliates in accordance with the policies and assignments agreed upon the
Committee.
Divisions in charge of internal control, including the Corporate Auditing
Division, submit internal audit reports to the Audit Committee members, who
hold meetings such as those to discuss internal audit policies and periodic
report meetings to exchange opinions. Outside Audit Committee members visit
our offices, affiliates, and other locations with the members responsible for
investigation as needed and offer their opinions based on their expert knowl-
edge at the Audit Committee meeting and other occasions.
In addition, the Audit Committee members discuss policies and methods of
auditing with accounting auditors, who furnish them with reports on the status
and results of the audits of the Company that they themselves conduct, and
exchange opinions with them.
4. Agenda of the Audit Committee
The main agenda of the Audit Committee include the determination of audit
policies and activity planning, check on the execution of the duties by directors
and Executive Officers and the establishment and operation of the internal
control system, check on methods of auditing by accounting auditors and
validity of results, and evaluation of accounting auditors and decision on
whether to reappoint them.
Especially in fiscal 2020, the Audit Committee focused on checking and
verifying how the Mitsubishi Electric Group had strengthened its business
foundation including the internal control and compliance systems and the
business platform that supports profitability, improved the cash flow through
the streamlining of assets, and worked on activities such as the proper han-
dling of quality issues and “Work Style Reforms” with an aim to improve the
mid- and long-term corporate value of the Group.
As the Mitsubishi Electric Group is committed to contribute to the achieve-
ment of the SDGs to solve diverse social challenges, the Audit Committee also
checked and verified the Group’s contribution through business as well as the
efforts in the environment, CSR, and other fields.
In fiscal 2020, labor issues, improper quality-related conduct, the possibility
of information leakage due to unauthorized access, and other issues have
become clear at the Group. The Audit Committee has confirmed that the
Executive Officers are formulating and implementing measures to prevent
recurrence based on the analysis of the cause of each issue, and will closely
monitor the response to each issue and the progress thereof going forward.
5. Effectiveness evaluation of the Audit Committee
The Audit Committee conducts evaluation to improve performance every year.
In the Audit Committee review in fiscal 2020, outside Audit Committee mem-
bers concluded that the members responsible for investigation (full-time Audit
Committee members) periodically report their activity results and that manage-
ment information is properly shared in a timely manner in the Audit Committee.
Although we believe that this evaluation in effect endorses the performance of
the Audit Committee, we will continue to make efforts to improve performance.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
25
CSR at Mitsubishi Electric Group
Status of Internal Audit
1. Organization, members, and procedures for internal audit
An internal audit is intended to contribute to the sound management and
strengthened management structure of Mitsubishi Electric and its affiliates in
Japan and overseas by improving management efficiency, strengthening risk
management, thoroughly observing the code of corporate ethics and ensuring
compliance, and enhancing internal control.
With approximately 60 members acting independently in Japan and over-
seas, Mitsubishi Electric’s Corporate Auditing Division conducts internal audits
of the Company from a fair and impartial standpoint. In addition, the division’s
activities are supported by auditors with extensive knowledge of their particular
fields, assigned from relevant business units. The Corporate Auditing Division
reports the results of such audits to the President & CEO and the Audit
Committee.
2. Relationship with the divisions in charge of internal control
In the Mitsubishi Electric Group, the administration divisions such as the
Corporate Strategic Planning Division, the Corporate Accounting Division, the
Corporate Legal & Compliance Division, and the Corporate Export Control
Division inspect the establishment and operation of the internal control system
and regulations, etc. under their scope of responsibility for internal control. In
addition, each business division has its own compliance department, which
reliably spreads companywide compliance policies and inspects the compli-
ance status in each business division.
The Corporate Auditing Division internally audits the operation and other
aspects of the internal control system, evaluates the internal control related to
the establishment of internal whistle-blower system and financial review, and
mutually exchanges necessary information with each division in charge of
internal control.
3. Mutual relationship among internal audit, the audit by the Audit Committee,
and accounting audit
The Corporate Auditing Division reports the internal audit policies and internal
audit results to the Audit Committee and exchanges opinions with the Audit
Committee members on a regular basis.
The Corporate Auditing Division also reports internal audit results to the
accounting auditors and continuously works with them, discussing the evalua-
tion of the internal control related to financial review as needed.
Providing Directors with Appropriate Information at the Appropriate Time, and Conducting Reviews
of the Board with Analyses and Evaluations
To strengthen the Board’s capacity to supervise Company’s management, the
bureaus of the Board of Directors and each committee provide the directors with
the information necessary for supervising management, in a timely and appropri-
ate manner. And, to further improve the Board of Directors’ capacity to supervise
management, venues have been established for supplying information to and
exchanging views with Outside Directors, and the Company is working to further
enhance the provision of management-related information to the Board of
Directors itself.
Additionally, in order to further enhance the functioning of the Board of
Directors, the Board meetings are reviewed on an annual basis, and analyses and
evaluations are conducted in the following areas.
• Frequency, scheduling, and time spent on the meetings
• The information supplied in relation to discussions at the meetings (quality and
quantity) and the method of its provision
• Materials, details and methods of explanation, question-and-answer guidelines,
time apportioned for each proposal on the meetings
• Other mechanisms for improving the functioning of the Board of Directors.
• Points for improvement of policies based on previous reviews of the Board of
Directors
• Opinions about and points for improvement in the method for reviewing the
Board of Directors,etc.
As a result of the Board of Directors review, the Board of Directors was evalu-
ated as making ongoing and effective improvements in response to the results of
annual reviews, and achieving even better results on each occasion with respect
to timely and appropriate management information sharing with Executive
Officers, which is essential for the Board to properly fulfill its supervisory function.
The review also concludes that this persistent improvement has stimulated dis-
cussion and opinion exchange more than ever.
Although we believe that this evaluation in effect endorses the performance of
the Board of Directors, we will continue to improve its operation and attempt to
further improve the performance of the Board by sharing management informa-
tion, further upgrading discussion, particularly on mid- and long-term business
strategies, between the supervisory and executive sides based on the shared
information, and analyzing review results in more detail through individual inter-
views and other efforts.
26 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Policies Regarding Decisions on Compensation, etc.
1. Basic Policies
(1) As a Company with Three-Committee System, the Company has separate
functions for the supervision and execution of business, with the Board of
Directors undertaking the business supervisory function, and Executive
Officers, the business execution function. Accordingly, Directors and Executive
Officers have separate compensation schemes according to the content and
responsibilities of their duties.
(2) Directors give advice to and supervise the Company’s management from an
objective point of view, and therefore, the compensation scheme for Directors
is the payment of fixed-amount compensation and the payment of a retire-
ment benefit upon resignation.
(3) The compensation scheme for the Executive Officers focuses on incentives for
the realization of management policies and the improvement of business per-
formance, and performance-based compensation will be paid in addition to
the payment of fixed-amount compensation and a retirement benefit upon
resignation. The basic policies of such performance-based compensation are
as follows:
1) Compensation for the improvement of business performance over the mid-
to long-term, and that increases awareness regarding contributing to
increased corporate value
2) Compensation that is closely linked to the Company’s performance and
highly transparent and objective
3) Compensation focused on sharing profits with shareholders and increasing
awareness of management that gives weight to shareholder benefits
(4) In order to introduce an objective perspective from outside the Company and
expert knowledge about the Directors’ and Executive Officers’ compensation
scheme, the Company will hire an external remuneration consultant, and with
the support of the consultant it will consider the compensation levels and
compensation schemes by taking into account external data on the compen-
sation of major companies in Japan operating globally, domestic economic
environment, industry trends, and the Company’s conditions, etc.
2. Compensation Scheme for Directors and Executive Officers and
Policies Regarding Decisions on Compensation, etc.
(1) Compensation scheme for Directors
1) Directors will receive their compensation as a fixed amount, and the com-
pensation to be paid will be set at a level considered reasonable, while tak-
ing into account the contents of the Directors’ duties and the Company’s
conditions, etc.
2) Directors will receive the retirement benefit upon resignation, and the retire-
ment benefit to be paid will be set at a level decided on the basis of the
monthly amount of compensation and the number of service years, etc.
Outside Directors
Outside Directors
The Company has five Outside Directors, each of whom has no special interest
with the Company. Although companies in which each of the Outside Directors
holds office in or has been a director or officer of include those with trading rela-
tionships with the Company, no such relationships have an impact on the inde-
pendence of each relevant Outside Directors based on the scale or nature of such
trading, and thus they possess no risk of giving rise to any conflict of interest with
the general shareholders of the Company.
Outside Directors are expected to supervise management from a high-level
perspective based on their abundant experience. Those who are comprehensively
judged to possess the character, acumen, and business and professional experi-
ence suited to fulfill that role, and who satisfy the requirements of independent
executives specified by the Tokyo Stock Exchange and the requirements specified
(2) Compensation scheme for Executive Officers
1) Fixed-amount compensation will be set at a level considered reasonable
taking into account the contents of the Executive Officers’ duties and the
Company's conditions, etc.
2) Performance-based compensation will be as follows:
∙ The Mitsubishi Electric Group has been pursuing sustainable growth by
maintaining Balanced Corporate Management based on three perspec-
tives: growth, profitability and efficiency, and soundness. In line with its
efforts to further increase corporate value, the Group has set its growth
targets for fiscal 2021 as consolidated net sales of ¥5.0 trillion or more,
and an operating income ratio of 8% or more. The payment base amount
for performance-based compensation will be determined based on the
consolidated business performance (Net profit attributable to Mitsubishi
Electric Corp.stockholders) while taking into account the Group’s manage-
ment policy and targets.
∙ The payment amount of each Executive Officer will be determined, within
the range of ±20% of the payment base amount while taking into account
the performance of the business to which the respective Executive Officer
is assigned, etc.
∙ With the purposes of meshing the interests of shareholders with the
Executive Officers and further raising management awareness that places
importance on the interest of shareholders, and increasing the incentives
for the improvement of business performance from the mid- and long-
term perspectives, 50% of performance-based compensation will be paid
in the form of shares. The Company sets a rule that, for the compensation
paid in the form of shares, the Company shares will be issued after a
three-year waiting period. In addition,The shares are required to continue
holding the shares until 1 year has passed from resignation.
3) The amount of the retirement benefit will be decided on the basis of the
monthly amount of compensation and the number of service years, etc.
(3) Decision-making process, etc.
Policies regarding decisions on compensation, etc. of Directors and Executive
Officers and individual compensation details based on the policies will be
made through resolutions by the Compensation Committee, which the majority
of the members are Outside Directors. The details of activities of the
Compensation Committee will be reported to the Board of Directors each time
an activity is performed.
web
* For the amount of compensation given to Directors and Executive Officers, please refer to the
Annual Security Report.
https://www.MitsubishiElectric.com/en/investors/library/securities_report/
in Mitsubishi Electric’s Guidelines on the Independence of Outside Directors (see
note at below) and thus possess no risk of giving rise to any conflict of interest
with the general shareholders of the company, are selected as Outside Director
candidates by the Nomination Committee.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
27
CSR at Mitsubishi Electric Group
Independency Guideline for Outside Directors
Mitsubishi Electric Corporation nominates persons with experience in company
management in the business world, attorneys and academics, among other
specialists, who are appropriate to oversee the Company’s business operations
and not falling under any of the following cases, as candidates for Outside
Directors. Each of the following 1), 2), 4) and 5) includes a case in any fiscal
year during the past three fiscal years.
1. Persons who serve as Executive Directors, Executive Officers, managers or
other employees (hereinafter ”business executers”) at a company whose
amount of transactions with the Company accounts for more than 2% of the
consolidated sales of the Company or the counterparty
Company has borrowings that exceed 2% of the consolidated total assets
3. Persons who are related parties of the Company’s independent auditor
4. Persons who receive more than ¥10 million of compensation from the
Company as specialists or consultants
5. Persons who serve as Executive Officers (Directors, etc.) of an organization
to which the Company offers contribution that exceeds ¥10 million and 2%
of the total revenue of the organization
6. Persons who are the Company’s major shareholders (holding more than
10% of voting rights) or who serve as their business executers
7. Persons who are related parties of a person or company that have material
2. Persons who serve as business executers at a company to which the
conflict of interest with the Company
In addition, Outside Directors enhance the checking function of management by receiving reports about the activity status of internal auditors, the audit committee,
accounting auditors, and divisions in charge of internal control via the Board of Directors, and providing valuable comments regarding Mitsubishi Electric’s management
from an objective perspective. By doing this, they bring greater transparency to the management framework and strengthen the Board's function of supervising manage-
ment.
Outside Directors (as of June 26, 2020)
Title
Name
Positions Held
Reasons for Nomination
Outside
Director
Mitoji
Yabunaka
Outside
Director
Hiroshi
Obayashi
Outside
Director
Kazunori
Watanabe
Outside
Director
Hiroko
Koide
Outside
Director
Takashi
Oyamada
Chairman of the Nomination
Committee
Member of the Compensation
Committee
Mr. Yabunaka's experience and insights as an expert in international affairs cultivated
through the course of a career are highly beneficial to Mitsubishi Electric. Mitsubishi
Electric thus expects him to bring an objective viewpoint to the overseeing of the
Company's business operations.
Member of the Nomination
Committee
Chairman of the Audit
Committee
Mr. Obayashi's experience and insights cultivated through the course of a career as a
lawyer (public prosecutor, attorney-at-law) are highly beneficial to Mitsubishi Electric.
Mitsubishi Electric thus expects him to bring an objective viewpoint to the overseeing
of the Company's business operations.
Member of the Audit
Committee
Chairman of the Compensation
Committee
Mr. Watanabe's experience and insights as a certified public accountant cultivated
over the course of his career are highly beneficial to Mitsubishi Electric. Mitsubishi
Electric thus expects him to bring an objective viewpoint to the overseeing of the
Company's business operations.
Member of the Nomination
Committee
Member of the
Compensation Committee
Member of the Nomination
Committee
Member of the Audit
Committee
Ms. Koide's experience and insights as a business specialist cultivated over the course
of her career in international corporate management are highly beneficial to Mitsubishi
Electric. Mitsubishi Electric thus expects her to bring an objective viewpoint to the
overseeing of the Company's business operations.
Mr. Oyamada's experience and insights as a business specialist cultivated over the
course of his career in bank management are highly beneficial to Mitsubishi Electric.
Mitsubishi Electric thus expects him to bring an objective viewpoint to the oversight of
the Company's business operations.
Mitsubishi Electric Corporation held seven Board of Directors meetings during fiscal 2020.
The status of attendance for Mr. Takashi Oyamada, Outside Director, is based on the number of the Board or Directors meetings held after he assumed office on June 27, 2019.
Board Attendance
Rate (FY2020)
100% (7/7)
100% (7/7)
100% (7/7)
100% (7/7)
100% (5/5)
Status of Stocks Held
Status of Stocks Held
1. Criteria and Approach on Classification of Stocks for Investment
With regard to the classification of stocks for investment held for pure invest-
ment purposes and stocks for investment held for purposes other than pure
investment, the Company classifies stocks held solely for profit purposes from
changes in the stock value or dividends on stock as pure investment. There
are no stocks held solely for pure investment.
2. Stocks for Investment Held for Purposes Other Than Pure Investment Purposes
The Company holds stocks that are determined to be necessary for business
operations, taking into consideration maintaining and strengthening relation-
ships with business partners. The Company comprehensively judges whether
or not stocks held are significant, from the viewpoint of their profitability, busi-
ness feasibility, holding risks, and other aspects are verified and confirmed
yearly in the Executive Officers’ meeting and in the Board of Directors’ meet-
ing. Furthermore, the Company performs verifications with regard to profitabili-
ty, as to whether the income gained from related businesses and total
dividends received are reaching a level above the capital cost, with regard to
business feasibility, whether there are not any significant changes in business
relationships or amounts of transactions, etc., and with regard to holding risks,
whether the corporate value of the investee has fallen or not. When stocks are
thus judged to have a low holding significance, the Company considers the
reduction thereof such as by selling them, taking into consideration the situa-
tion of the company concerned.
web
*For the Status of Stocks Held, please refer to the Annual Security Report.
https://www.MitsubishiElectric.com/en/investors/library/securities_report/
28 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Compliance
Our Concept of Compliance
With the Mitsubishi Electric Group Corporate Ethics and
Compliance Statement formulated in 2001 as our basic guideline
for compliance, the Mitsubishi Electric Group recognizes the
importance of ethics and absolute compliance with legal require-
ments as a fundamental precondition for the Group’s continued
existence. Based on this awareness, we are attempting to perfect
a compliance system which promotes compliance in the broadest
sense, encompassing the perspective of corporate ethics, rather
than merely focusing on following the letter of the law. At the
same time, we are working to educate our employees in this area.
The Corporate Ethics and Compliance Statement
Compliance with
the Law
Respect for
Human Rights
We will conduct ourselves always in compliance with applicable laws and with a high degree of sensitivity
to changes in social ethics or local practices. We will never establish a target, nor make a commitment,
that can only be achieved with conduct that would violate applicable laws or business ethics or practices.
We will conduct ourselves always with a respect for human rights. We will not discriminate based on nation-
ality, race, religion, gender, disability, or any other reason prohibited by applicable laws nor will we violate
international laws providing protection for individual and human rights or any treaties providing such protec-
tion to which the country where any of our companies is located is a party.
Contributing to
Society
Concurrently with the pursuit of a reasonable profit, we will conduct ourselves always with an awareness of
our corporate social responsibility in order to further the progress of society as a whole.
Collaboration and
Harmonization with the
Community
As a good corporate citizen and neighbor, we will support civic and charitable organizations and activities
in the communities where we reside or work that in our view contribute to community development.
Consideration of
Environmental Issues
As part of our goal to achieve a recycling-oriented society, we will pay attention to and respect the global
environment in every aspect of our business.
Awareness of
Personal Integrity
We will conduct ourselves with the highest integrity, making a proper distinction between public and pri-
vate matters, and we will use company resources—including money, time, and information—for legiti-
mate business purposes. We will use company computers and various networks and online services,
including e-mail and Internet access, primarily for company business.
Mitsubishi Electric Group compliance promotion system
Affiliates in Japan
Mitsubishi Electric Corporation
Overseas affiliates
President
Executive
Officers' Meeting
Corporate
Compliance Committee
Legal and regulatory management divisions
Regional Chief
Compliance Officer
President
Group President
President
Group Compliance
General Manager
Group Vice President,
head of site
Group Compliance
General Manager
Conference
Corporate
Compliance
Officer
Regional
Compliance Managers
Conference
Head of
each division
Department
Senior Manager
Section Manager
Compliance
Manager
Compliance
Managers
Conference
Head of
each division
Compliance Leader
Compliance
Promotion
Committee
Corporate
Compliance
Officers
Conference
Corporate
Compliance
Officer
Compliance
Manager
Operation site
Business unit, branch office, manufacturing site, research center
Site-Specific Compliance
Promotion Committee
Compliance Information
Liaison Conference
Compliance
Promotion Committee
Compliance Information
Liaison Conference
Risk Management
Risk Management Framework
The Mitsubishi Electric Group maintains a multi-dimensional risk management system
in which all executive officers participate.
Under this system, executive officers are responsible for risk management in their
assigned areas of operation. In addition, executive officers exchange information and
participate in important management initiatives and decisions through regularly sched-
uled executive officers' meetings.
In the event an incident occurs that seriously calls into question the Group's social
responsibility and is expected to have a profound impact on management, or in the
case of such emergencies as large-scale disasters, accidents or pandemics, a compa-
ny-wide Emergency Response Center will be established to implement measures under
the leadership of the president, to ensure prompt and proper initial response.
Risk Management Framework (Mitsubishi Electric Group)
Executive Board
Company-wide Emergency Response Office (emergency situations)
Planning Committee
Business Council
Business Investment
Review Committee
Risk Review Board
Joint Review Commission
Regional Corporate Offices
(overseas)
Important matters
Risk cases
Quality / Environment
Disasters, etc.
Operations departments
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
29
CSR at Mitsubishi Electric Group
Our Approach to Information Security
Basic Policy
In January 2020, Mitsubishi Electric reported a data leak incident caused by
unauthorized access to its system, which has resulted in inconvenience and con-
cern for customers and society. After also reflecting on guidance from the
Personal Information Protection Commission received in December 2019 con-
cerning the handling of personal information obtained through recruitment activi-
ties, the Mitsubishi Electric Group will continue to strengthen its information
security measures* to prevent such a situation from occurring again. We also will
strengthen the measures considering the general trend toward teleworking and
cloud-based business models.
Mitsubishi Electric manages confidential corporate information relating to
sales, engineering, intellectual property, and other areas, as well as information
entrusted to the company by its customers and stakeholders. This is carried out
based on the Declaration of Confidential Corporate Information Security
Management established in February 2005. In light of events in fiscal 2019, we
will once again work to increase awareness of this declaration within the
Mitsubishi Electric Group and strive to protect and manage information even
more carefully.
* Information security measures: These include technical measures from the four perspectives of intrusion
blocking, containment, leak prevention, and global response, as well as human resource measures such
as enhancement of employee training, and organizational measures on operation quality improvement,
including thorough document management and framework upgrading.
Framework and guidelines
In April 2020, a new “Corporate Information Security Division” was established
under the direct control of the president, to oversee all the Group’s information
security management. It has integrated three functions that were previously sep-
arate: management of confidential corporate information and personal data pro-
tection, information system security, and product security.
The Executive Officer in charge of Information Security is responsible for the
Group’s overall information security management. Under this officer’s direction,
the Corporate Information Security Division is in charge of planning and imple-
menting the Group’s information security management structure and rules as well
as activities to ensure the security of information systems. The Division is striving
to ensure information security by working closely with each business group and
site, which are the organizations that actually utilize and manage the data and
systems.
In the event an incident were to occur, reports and instructions would be given
in keeping with this framework and appropriate responses would be taken to pre-
vent secondary damage.
Business groups and offices (offices, branches, works [production plants])
Information Security System (Mitsubishi Electric Group)
30 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
issue instructions and guidance on information security to affiliates in and outside
Japan. Paying special attention to the circumstances and special characteristics
of overseas affiliates, the Corporate Information Security Division places overseas
regional representative managers at sites in the Americas, Europe, China, and
other Asian countries and coordinates with them to ensure information security.
Personal information protection
In efforts to protect personal information, Mitsubishi Electric first created com-
pany rules on personal information protection in October 2001, and since then it
has required all employees and affiliated persons to obey those rules strictly.
Mitsubishi Electric issued a personal information protection policy in 2004,
complying with the requirements of JIS Q 15001:2006 Personal Information
Protection Management Systems. In January 2008, we were granted the right
to use the “PrivacyMark,” which certifies the establishment of management sys-
tems that ensure proper measures for personal information protection. We have
maintained our “PrivacyMark” certification until the present.
We have also conducted a review of our internal regulations to ensure a prop-
er response to Japan’s amended Act on the Protection of Personal Information,
which went into force in May 2017.
Cyber-Attack Countermeasures
Cyber-attacks have become a major threat for businesses. As they are growing
increasingly sophisticated and diverse year-by-year, it is becoming difficult to pre-
vent them. The Mitsubishi Electric Group deploys cyber-attack countermeasures
through a multilayered defense consisting of a number of different defense mea-
sures stacked on top of each other. Furthermore, there are cyber-attacks that
cannot be prevented entirely with a multilayered defense alone. Accordingly, we
monitor cyber-attacks and have put in place a system to respond immediately
should a case occur, in an effort to prevent or minimize damage.
Internet websites are constantly exposed to many external threats, and so we
only launch websites that are approved by Mitsubishi Electric in order to maintain
high security level.
Potential for leaks of personal data and confidential corporate
information due to unauthorized system access
We sincerely apologize for any inconvenience and/or concern experienced
by our customers and society as a result of the data leak incident caused
by unauthorized system access, as reported in January 2020.
On June 28, 2019, after detecting and investigating suspicious activity
involving computer terminals at Mitsubishi Electric, it was determined that
data had been taken through unauthorized system access by a third party.
The investigation took some time because it was a sophisticated attack
that bypassed monitoring and detection measures, and the logs that
would have identified the affected files were deleted by the hacker on
some terminals. The finding was that personal data and confidential cor-
porate information may have been leaked externally.
The Mitsubishi Electric Group deeply regrets not being able to prevent
such a situation, and reaffirms that cyber security is an important man-
agement issue as stated in the Cyber Security Management Guidelines of
the Ministry of Economy, Trade and Industry. Going forward, we will deploy
stronger and more nimble information security measures globally. The
Group has established the Corporate Information Security Division, which
is a unified organization under the direct control of the president, in order
to continually ascertain and manage risks and prevention measures within
the Group. We continue to work on information security measures to pre-
vent any such incident from reoccurring. The Group also shares its knowl-
edge to help society as a whole counter today’s increasingly sophisticated
and diversified cyber-attacks.
E: Environment
Environmental Sustainability Vision 2050
The Mitsubishi Electric Group adopted its Environmental Vision 2021, which aims to
create a low-carbon, recycling-based society that functions in harmony with nature, in
2007. The Group also has promoted its 9th Environmental Plan created from a medi-
um- and long-term perspective in light of the Paris Agreement since fiscal 2019. In
this plan, future water shortage measures are considered as well. In June 2019, the
Group announced its Environmental Sustainability Vision 2050 to show its new long-
term environmental management vision.
Having developed its business through interaction with many stakeholders including
customers, business partners and employees and being deeply rooted in society, the
Mitsubishi Electric Group is expected to assume responsibility for contributing to the
environment. With this recognition, the Environmental Sustainability Vision 2050 is
intended to aim for the future together with stakeholders.
"Protect the air, land, and water with our hearts and technologies to sustain a better
future for all" has been adopted as an environmental declaration in the Environmental
Sustainability Vision 2050. The air, land, and water are vital for the survival of every
creature on Earth. Bearing these three elements in mind, we will continue considering
to which element we will contribute in what business area of the Mitsubishi Electric
Group and put ideas into practice. In addition, we share our commitment to the
environment and technologies not only with those who work for the Mitsubishi Electric
Group but also with all other stakeholders and contribute to the realization of a
sustainable future under three action guidelines shown in the Environmental
Sustainability Vision 2050, while striving to further improve our technological prowess.
Environmental Sustainability Vision 2050
Environmental Declaration
Protect the air, land, and water with our hearts
and technologies to sustain a better future for all.
To solve various factors that lead to
environment issues, the Mitsubishi
Electric Group shall unite the
wishes of each and every person,
and strive to create new value for a
sustainable future.
Three Environmental Action Guidelines
1
Apply diverse technologies in
wide-ranging business areas
to solve environmental issues
2
Challenge to develop
business innovations for
future generations
3
Publicize and share new
values and lifestyles
Key Initiatives
- Climate Change Measures
- Resource Circulation
- Live in Harmony with Nature
- Long-term Activities
- Innovation
- Nurturing Human Resources
- Understanding Needs
- Co-create and Disseminate
New Values
- Live in Harmony with the
Region
Environmental Initiatives and the SDGs
Shaping the World of 2030
SDGs Closely Related to Mitsubishi
Electric Group Environmental Activities
Example 1
Offering Technologies that Contribute
to the Conservation of the Aquatic Environment
Example 2
Increasing Product Energy Efficiency
We have provided ozone generators, which
use ozone instead of chlorine to purify water,
for nearly 50 years. The ozone generators can
be used at water purification and sewage
treatment plants, pharmaceutical and chemi-
cal plants, and aquariums, contributing to the
conservation of our aquatic environment.
Mitsubishi Electric Group products con-
sume electricity when used. As increased
product energy efficiency results in less
CO2 generated during use, our goal is to
develop energy-efficient products.
Cultivating Innovation for the Future
Great expectations are being placed on corporate innovation to achieve the SDGs and Paris Agreement goals. Mitsubishi Electric set up the Center for Future Innovation in
July 2015 to promote open innovation, with future-oriented research and development instead of focusing on prolonging the use of existing technologies. Accelerating the
cultivation of innovation in this way, alongside making full use of the strengths of our products and services, will allow us to contribute to the environment across a wide
range of fields.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
31
CSR at Mitsubishi Electric Group
Greenhouse Gas Reduction Targets Based on Scientific Grounds
It is recognized that the Mitsubishi Electric Group’s greenhouse gas reduction targets for 2030 are based on scientific grounds to
"Holding the increase in the global average temperature to well below 2°C above pre-industrial levels" as stipulated in the Paris
Agreement. We have obtained certification from the SBT (Science Based Targets)*1 initiative.
We will continue to promote the reduction of greenhouse gases through a variety of business areas in the Mitsubishi Electric Group.
*1 International initiative by the United Nations Global Compact (UNGC), the World Wildlife Fund (WWF), the Carbon Disclosure Project (CDP), and the World Resources Institute (WRI). The SBT initiative propels companies to
set reduction targets that are consistent with insights of climate science with an aim to control the rise in the global average temperature due to climate change at most under 2˚C compared with the temperature before
the Industrial Revolution.
Reduction Targets of the Mitsubishi Electric Group
Scope 1 and 2
Mitsubishi Electric commits to reduce
total scope 1 and 2 GHG emissions by 18% by 2030,
compared to the base year of 2016.
Scope 3
Mitsubishi Electric commits to reduce
total scope 3 GHG emissions by 15% by 2030,
compared to the base year of 2018.
Scope 1 Direct emissions resulting from fuel use within the company.
Scope 2 Indirect emissions associated with the use of externally purchased electricity and heat.
Scope 3 Indirect emissions from the entire value chain other than Scope 1 and 2 emissions.
(Category 11 (use of sold products) applies to our target.)
Response to TCFD Recommendations
The Mitsubishi Electric Group approved of the recommendations by the TCFD (Task Force on Climate-related Financial Disclosures)*1 in May 2019.
The Mitsubishi Electric Group assesses climate-related risks and opportunities using climate change scenarios for further improvement and new efforts.
The Mitsubishi Electric Group has placed contributing to saving the environment as an important issue for management and endeavors to create new value to solve
diverse environmental problems including climate change.
For more information, please refer to our environmental report*2.
*1 Private-sector-led task force that encourages investors to make appropriate investment decisions
(evaluate company sustainability).
The TCFD encourages companies to efficiently disclose climate-related financial information through
recommendations.
*2 Scheduled for release in August 2020.
32 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
S: Social
Human rights management
Mitsubishi Electric Group Human Rights Policy
Protection of human rights and support for internationally agreed human rights
are imperatives for the Mitsubishi Electric Group's business activities.
Accordingly, as members of the Group, we recognize our duty to prevent any
complicity with human rights violations. On that basis, the Mitsubishi Electric
Group enacted its Corporate Ethics and Compliance Statement in 2001 and
pledged that all executives and members of the Group "will conduct ourselves
always with a respect for human rights, will not discriminate based on nationali-
ty, race, religion, gender, or any other reason".
As the Mitsubishi Electric Group continues to expand its business globally, in
accordance with the spirit of the Mitsubishi Electric Group's Corporate Mission
and Seven Guiding Principles, it has established this Human Rights Policy and
shall raise awareness of human rights among its members and make sure to
properly deal with related incidents in order to ensure that its business activities
do not have a negative impact on human rights.
Management system related to Respecting Human Rights
The Mitsubishi Electric Group established a Human Rights Policy in September
2017 and has been undertaking human rights due diligence and other measures
based on the United Nations Guiding Principles on Business and Human Rights,
etc. In this initiative, we promote continuous improvement activities by imple-
menting the Plan-Do-Check-Action (PDCA) cycle, in which the Human Rights
working group composed of the people in charge in divisions concerned
(Corporate Human Resources Div., Corporate Legal Div., Corporate Purchasing
Div., etc.) discuss policies and measures for dealing with human rights issues,
and results of initiatives are confirmed and policies and plans are considered
and approved in a meeting of the CSR Committee held every year.
Human Rights Impact Assessment
In fiscal 2019, we provided feedback of the results of assessing human rights
impact to a total of 336 sites for which the assessment was conducted, includ-
ing Mitsubishi Electric, its offices, domestic affiliated companies and overseas
affiliated companies, and requested them to promote improvement activities.
We are promoting initiatives especially related to such issues as “preventing
harassment,” “controlling long work hours,” and “giving consideration toward
women and people with disabilities” by incorporating them into human rights
education themes. Going forward, we will continue striving to understand human
rights risks and implement mitigation measures by conducting human rights
impact assessments on a regular basis.
Grievance Handling Mechanism
The Mitsubishi Electric Group has established multiple points of contact to respond to inquiries from various stakeholders, of which main points of contact are listed in
the table below. We also receive consultation requests on human rights through them.
For each whistleblowing case on human rights risk, the responsible division quickly confirm facts according to the content of consultation. If a violation of human
rights, etc. in business activities of the Mitsubishi Electric Group is confirmed, we appropriately respond to the instance by dealing with the victim and considering the
punishment of those who engaged in the case in question, etc. as well as promptly making a correction and improvement. However, please understand that the
Mitsubishi Electric Group may not deal with an instance for which facts cannot be confirmed as a result of confirmation and investigation or with a case which is deter-
mined as difficult to investigate due to being groundless, slander, and so on.
Main report and inquiry channels of Mitsubishi Electric
Assumed users
Report and inquiry channel name
Accepted report and inquiry
Contact information
Diverse stakeholders
(including customers and local
residents)
Official website of the Mitsubishi Electric Group
"Inquiries about CSR"
"Other inquiries"
- Inquiries about the CSR of the
Mitsubishi Electric Group
- Various inquiries about other
corporate activities of the Mitsubishi
Electric Group
Official website of the Mitsubishi
Electric Group
"Inquiries about CSR"
"Other inquiries"
Employees of Mitsubishi Electric or
its affiliates*1 and business
partners of Mitsubishi Electric*1
Ethics and Compliance Hotline
Reports and inquiries about
organizational or individual fraud,
breach of law, or unethical behavior
Internal or external inquiry channel
(lawyer)*2,3
Employees of Mitsubishi Electric
Harassment Inquiry Center
Reports and inquiries about
harassments in Mitsubishi Electric
Human resources department in
each Mitsubishi Electric office
*1 Limited to reports related to Mitsubishi Electric in terms of people or business.
*2 Contact information is available on the Mitsubishi Electric intranet, internal posters, and the Mitsubishi Electric Group Code of Corporate Ethics and Compliance, for example.
*3 Each domestic and overseas affiliate of the Mitsubishi Electric Group has its own whistle-blower system.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
33
CSR at Mitsubishi Electric Group
Labor Practices
Maintaining a Favorable Working Environment
Japan’s working population is expected to dramatically decrease in conjunction with its aging and declining population, and there is apt to be a further increase in the num-
ber of employees, both men and women, who work while caring for children or elderly members of their family. In order for Mitsubishi Electric to survive through the tough
international competition and realize sustainable growth under these circumstances, it will be essential to create a working environment where all employees can work to
their full potential within their limited time.
Women’s Participation
To formulate and implement original measures that would help female employees
and employees with children form a career while also enriching their personal
lives, Mitsubishi Electric established the CP-Plan* Promotion Center within its
Corporate Human Resources Division in April 2006, with a mandate to promote
recruitment, training, assignment, and institutional initiatives from a diversified
perspective.
*Career management & Personal life well-balanced Plan
Trend in the number of female employees (Mitsubishi Electric)
Number of female employees
Ratio of female employees
(NO.)
2,000
1,750
1,500
1,250
1,000
750
500
250
2007
2008
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2019
2020
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2021
(FY)
Create a work environment where all the employees can work actively with a sense of security
Mitsubishi Electric will take the following measures under the Mitsubishi Electric Workplace Culture Innovation Program, aiming at creating a workplace where workers
can openly communicate with one another, thorough appropriate care of employees with mental health issues, and other goals. We particularly focus on creating a work-
place with zero tolerance to power harassment.
We will strongly promote this program as a project activity under the direct responsibility of the president.
99% of Mitsubishi Electric employees, including those who work for affiliates in Japan, attended harassment seminars conducted in fiscal 2020 for all employees.
Mitsubishi Electric Workplace Culture Innovation Program
Action
1. Enhance education on harassment
such as power harassment, and
strengthening evaluation when
assigning leaders including managers
2. Engage in quantitative workplace
culture analysis through attitude
surveys and ongoing improvement
based on analysis results
3. Enhance measures to identify and
address the workload and mental
condition of individuals at an early
stage
4. Engage in thorough and appropriate
care of employees with mental health
issues
Main measures
1) Enhance education on harassment and make it obligatory for all employees to attend the seminar.
2) Shed light on harassment when training managers and staff in charge of education when assigning new employees and thoroughly implement more
appropriate development and guidance.
3) Sufficiently evaluate candidates to see if they have basic idea of labor management (such as understanding which actions constitute harassment actions)
before assigning a manager or leader.
4) Remind all employees that perpetrators of power harassment will be subject to severe measures.
1) Conduct attitude surveys on workplace culture targeting all employees and an organization diagnosis in light of the survey every year.
2) Endeavor to solve the challenges recognized during the survey, taking opinions of outside experts into consideration, and continue to improve workplace
culture through the PDCA cycle.
1) Conduct a questionnaire survey to check the workload, workplace human relationships, stress status, and other problems of individuals every month to
identify and address changes in feeling at an early stage. (This survey currently targets new employees but will target all employees in the future.)
2) Increase periodic interviews with the human resources division after assigning new employees to the workplace.
Work-related issues tend to occur after an employee with mental health issues comes back to work. Therefore, we inspect the operation of the existing
Mitsubishi Electric Return to Work Support Guidelines*1 and thoroughly re-implement the guidelines to especially focus on the care of those with mental
health issues.
1) During leaves of absence
The supervisor and the human resources division will carefully explain how the employee in question will be treated during a leave of absence to the
relevant employee so that he or she can concentrate on the medical treatment.
For example, the supervisor and the human resources division periodically interview the relevant employee to track the situation to the extent that the
treatment is not hindered.
2) When the employee comes back to work after leave of absence
Follow considerations at return to work (such as limitations on work) based on the opinions of the company medical advisor.
For example, all workers across the workplace may also share how to accept the employee who comes back.
5. Enhance consultation channels
(establishment of multiple channels),
etc.
1) Start a new counseling service by an outside counselor in cases where an employee wants to consult an outside specialist face to face.
2) Start a mentor system for troubled employees to consult someone at the workplace with whom they do not have a supervisor-subordinate relationship in
order to create an environment where they can easily talk about their problems.
3) Assign multiple training supporters to receive consultations from new employees, so that each employee can select someone whom he or she is
comfortable with consulting.
4) Further enhance training courses that contribute to the improvement of employees’ stress management capabilities such as resilience education*2.
*1 Created referring to “Guidance for Supporting Workers Who Return to Work after Taking a Leave due to Mental Health Issues,” published by the Ministry of Health, Labour and Welfare
*2 Training program to enhance people’s capabilities to successfully address stress and adverse circumstances and recover
34 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Labor Practices
“Work Style Reforms”
early to enrich both their business and private lives with an ultimate goal of creat-
Work Style Reform —To the Next Stage —
ing a workplace where all the employees can work actively.
Since fiscal 2017, Mitsubishi Electric has driven work style reform as one of its
The activity policies under “Kaeru! MELCO” are to repeat a virtuous cycle of
management policies. This reform aims to transform the corporate culture to
enriching both business and private lives by deepening workplace communication
more focus on results and efficiency and to reform the job attitude to stop prais-
and by streamlining business operations and enhanc-
ing excessively long working hours and create a work environment where every-
ing their quality.
one can work actively. In fiscal 2021, we will move to the next stage and deepen
The Mitsubishi Electric Group promotes creating a
the initiatives, especially focusing on work style reform and work quality improve-
workplace with open communication where each
ment, with the slogan, “Kaeru! MELCO (Kaeru is a Japanese word that, depending
employee can vigorously work, maintaining mental and
on how it is written, means both to make changes and to go home).”
physical health. The whole Group makes every effort
Our slogan from fiscal 2021, “Kaeru! MELCO” means that Mitsubishi Electric
toward this goal.
will change (kaeru) the work style and the way of business operations to create
new value and reduce working hours so that employees can go home (kaeru)
Outcome of previous activities
We started the Work Style Reforms in fiscal 2017 and have promoted a variety of measures that contribute to reductions in working hours, proper working hours manage-
ment, and work quality improvement.
As a result, we reduced monthly overtime hours per employee by 13% from fiscal 2017 and the percentage of employees who responded that they had a good work-
life balance increased by 10% according to the employee attitude survey in fiscal 2020.
Percentage of employees who
responded that they had a good
work-life balance
(Employee Attitude Survey)
Changes in the number of employees
who worked more than 80 hours of
overtime a month
(including managers)
Changes in monthly overtime hours
per employee
(including managers)
(%)
(Total of employees)
(Hours)
2017 2018 2019 2020
FY
2017 2018 2019
2020
FY
2017 2018 2019
2020
FY
Initiatives to Prevent Recurrence of Work-Related Issues
The Mitsubishi Electric Group has experienced work-related issues that affect-
ed employees’ lives or mental and physical health. Although the Group imple-
mented prevention measures on each occasion, another work-related issue
occurred in fiscal 2020. We took this seriously, deeply regretted that our past
initiatives had not been sufficient, and determined preventive measures includ-
ing new initiatives.
The Group considers the prevention of recurrence of work-related issues as its
top management priority, and as a whole, makes every effort to create a work
environment where all the employees can maintain mental and physical health
and work actively with a sense of security. Specifically, the Group will work
together to deploy a variety of measures to innovate the workplace culture,
including measures to respond to power harassment and mental health issues,
to prevent long working hours and to properly manage working hours.
Item
Initiatives
Workplace culture
innovation
(measures to
respond to power
harassment)
(measures to
respond to mental
health issues)
Deployment of the Mitsubishi Electric Workplace Culture Innovation Program
• Enhance anti-harassment education and strengthening of evaluation when
assigning leaders, including managers
• Quantitative workplace culture analysis through attitude survey and
continuous improvement based on analysis results
• Enhance measures to identify and address the workload and mental
conditions of individuals at an early stage
• Engage in thorough and appropriate care of employees with mental health
issues
(Inspect operations and thoroughly reimplement Mitsubishi Electric Return
to Work Support Guidelines)
• Enhance consultation channels (establishment of multiple channels), etc.
• Reduce long working hours and continue proper tracking of working hours
• Implement appropriate health measures such as consultation by company
medical advisors
Measures against
long
working hours
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
35
CSR at Mitsubishi Electric Group
Supply Chain Management
Basic policy
The Mitsubishi Electric Group ensures fair and impartial selection and evaluation
of business partners in Japan and overseas by providing an explanation of the
Group’s Purchasing Policy and CSR Procurement Policy, and requesting business
partners’ understanding of these policies. By ensuring proper evaluation of sup-
pliers based on selection and evaluation criteria established by the Group, risks
are also mitigated along the supply chain.
The Group's criteria for evaluating business partners include not only quality,
cost, delivery schedules and services, but also initiatives in response to environ-
mental regulations and CSR initiatives. As a basic policy, the Group preferentially
procures materials from suppliers who rank high in a comprehensive evaluation.
Specific requirements for business partners are included in the Green
Accreditation Guideline and CSR Procurement Guideline.
Framework for Promotion of Supply chain Management
Under globally sustainable procurement, target costing and cost co-creation by
enhancement of partnership (G-STEP)* strategy toward strengthening the pur-
chasing structure, the Mitsubishi Electric Group aims to achieve the lowest cost
ratio ever starting in fiscal 2021. In this effort, we will develop and promote the
following measures toward improving profitability through operational and busi-
ness transformation as well as strengthening the corporate structure, the Group’s
business goal, through sustainable and stable procurement.
In cooperation with the Materials Planning Office in regional corporate offices
in China, Asia, Europe and the Americas, we implement purchasing strategies
through conferences of procurement officers and other such meetings to promote
Local procurement rate in the major regions (Mitsubishi Electric Group)
optimal procurement activities suited to each region.
In addition to this initiative, we will also promote activities to mitigate any per-
ceived risks regarding a range of issues related to labor practices and environ-
mental problems in the supply chain and thereby strengthen our business
continuity plan (BCP).
* We have promoted WΣ21II activities through March 2020. Starting in April 2020, we are fully rolling out
the activities with emphasis on the following:
Priority activities
(1) Establishing a framework for strengthening stable procurement
(2) Further strengthening the cost planning activity
(3) Expanding centralized purchasing
(4) Strengthening procurement quality control
(5) Strengthening a procurement platform for supporting relevant activities and measures
(6) Strengthening global optimal procurement
Framework for promotion of supply chain management
Mitsubishi Electric
Head Office Corporate
Purchasing Division
Purchasing divisions of domestic
manufacturing sites and research
facilities
Cooperation
Purchasing divisions of overseas
affiliated companies
(China, Asia, Europe, US)
Overseas Materials
Planning Office
Purchasing divisions of domestic
affiliated companies
Other
32%
Local content ratio
68%
Other
26%
Local content ratio
74%
Other
34%
Local content ratio
66%
Other
53%
Local content ratio
47%
China
68%
Local
56%
Overseas
12%
Asia
74%
Local
47%
Overseas
27%
Local
32%
Europe
66%
Overseas
33%
U.S.
47%
Local
30%
Overseas
17%
*1 Local procurement rate: Materials, parts, etc. (regardless of country of origin) that are procured by overseas production sites at their own discretion
*2 Local production ratio: Among all locally procured items, the procurement ratio of items produced in the country of the overseas site
*3 Foreign origin: Among all locally procured items, the procurement ratio of items produced in countries other than the country of the overseas site
Mitsubishi Electric Group Policies for Responsible Minerals Procurement
The Mitsubishi Electric Group aims for transparency in its supply chain to avoid
any affiliation with armed groups that trade in conflict minerals*1 as their source
of funding. We also recognize the possibilities of human rights violations occur-
ring in the severe labor conditions in cobalt mining sites as a major problem. The
Group adheres to the OECD Due Diligence Guidance for Responsible Supply
Chains of Minerals from Conflict-Affected and High-Risk Areas*2, and removes
certain minerals from the supply chain in situations where their procurement
encourages or contributes to serious human rights violations or environmental
destruction.
*1 Conflict minerals refers to gold, tin, tantalum, tungsten, and other minerals that have been determined by the U.S. State Department to be a source of support for armed groups when mined in the countries referred to above.
*2 OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (PDF:1.6MB)
36 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Quality Management
Basic policy
The Mitsubishi Electric Group is committed to improving its technologies and ser-
vices by applying creativity to all aspects of its business, to thereby enhance the
quality of life in our society, as stated in our corporate mission. This commitment
inherits the principles outlined in the Keys to Management (in Japanese, Keiei no
Yotei) with regard to ”our contribution to social prosperity,” ”quality improvement,”
and ”customer satisfaction,” and forms the basic spirit of our relationship with
society and our customers.
To give concrete shape to this basic spirit, the Seven Guiding Principles define
our actions in response to society and customers. It teaches us to establish rela-
tionships based on trust, provide the best products and services with unsur-
passed quality, and respond to customer expectations through technology by
promoting research and development and pioneering new markets.
Under these principles, we constantly strive to increase customer satisfaction
and contribute to social prosperity in all aspects of our business, from the pro-
duction of high-quality, easy-to-use products to our after-purchase support and
response to major issues.
Management system
Based on the Four Basic Quality Assurance Principles, we have established a sys-
tem for quality assurance and improvement activities throughout the entire Group,
including the appointment of a quality assurance promotion manager in all busi-
ness group headquarters. We have also formulated quality assurance guidelines
to ensure compliance with quality assurance legislation and standards and fur-
ther develop quality improvement activities. At the level of management, we also
regularly report on the status of quality at meetings of executive officers.
Worldwide manufacturing bases take responsibility for the quality assurance of
each product and are implementing concrete improvement initiatives in relation
to quality assurance measures (quality management) for processes at each stage,
from market surveys regarding Mitsubishi Electric products, through product
planning, development and design, manufacturing, transportation, storage, instal-
lation, maintenance and servicing, and education, to the disposal of the product.
In addition, in operating our Quality Management System (QMS), we regularly
check our PDCA cycle with reference to ISO and other international certification
standards, seeking to realize ever higher quality by process improvement.
Promotion of Quality Assurance and Improvement Activities
President
Business Group
Business Group
General Manager of
Business Group
General Manager of
Business Group
Quality Assurance Manager
Quality Assurance Manager
Executive Officer in Charge of
Quality Assurance
Executive Officers’ Meeting
Head Office Liaison Committee
t
n
e
m
t
r
a
p
e
D
g
n
n
n
a
P
l
i
Corporate Quality
Assurance Managers’
Committee
Factory
Factory
Factory Manager
Factory Manager
Quality Assurance Manager
Quality Assurance Manager
Individual quality improvement projects and activities
e
c
n
a
r
u
s
s
A
y
t
i
l
a
u
Q
e
t
a
r
o
p
r
o
C
Product Safety-related Principles
Based on the Corporate Statement and the Seven Guiding Principles, the
Mitsubishi Electric Group promotes initiatives to ensure product safety under the
following principles:
Product Safety-related Principles
1. We will not only comply with the laws related to product safety, but also
work on offering safe and reliable products to our customers.
2. We will prevent product-related accidents by indicating cautions and
warnings to help customers use our products safely.
3. We will work actively to collect information about product-related prob-
lems, disclose them appropriately to our customers, and report them
quickly to the government and other bodies as required under the law.
4. If any serious accidents occur resulting from product-related problems,
we will take appropriate measures to avoid further damage.
5. We will investigate the cause of product-related accidents and work to
prevent any recurrence.
6. We will make continuous efforts to improve our product safety promotion
system.
Particularly in regard to consumer products, Mitsubishi Electric is committed to
preventing serious hazards that could result in death, injury, fire, or other dam-
age, by subjecting all products to a quantitative risk assessment at the develop-
ment stage, while also designing and developing products in consideration of
their end-of-life management (to ensure safety even at the stage where products
are prone to break or be discarded). Especially in the case of home appliances,
Mitsubishi Electric conducts risk assessment for 100% of the products subject to
such assessments in pursuit of safety.
At the same time, our Customer Service Center in Japan operates 24 hours a
day, 365 days a year, to assist customers and gather their views about Mitsubishi
Electric products. Furthermore, we disclose accident information, including infor-
mation on the status of ongoing investigations, on our Japanese official website.
The results of re-examination of the quality assurance system of
Mitsubishi Electric and its subsidiaries
Mitsubishi Electric and its subsidiaries, etc. have been found to have com-
mitted misconduct with regard to quality control for certain products and
have submitted inadequate applications to the relevant authority regarding
product certification. In addition to thoroughly reviewing and reinforcing the
creation of a quality climate in the organization and strengthening the quality
control system, we will strive to ensure compliance once again and strength-
en internal control.
About the failure in shipping inspection for certain power semi-
conductor products of Mitsubishi Electric
During November 2014 to June 2019, Mitsubishi Electric’s Power Device Works
shipped certain power semiconductor* products it manufactured without carry-
ing out shipping inspections in accordance with the specification agreed with
the customer. This incident was found in the course of the ongoing strengthen-
ing of quality control following the efforts described in 1 above made across the
entire Group. In addition to thoroughly reviewing and reinforcing the creation of
a quality climate in the organization and further strengthening the quality control
system, we will strive for quick information sharing.
* A semiconductor device that efficiently controls power by converting electricity from AC to DC or
raising or lowering the voltage.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
37
CSR at Mitsubishi Electric Group
Philanthropic Activities
Philosophy and Policies
ronment in the vicinity of operational sites with the help of employee volunteers.
The Mitsubishi Electric Group shares a common Philosophy and Policies based
The Mitsubishi Electric Science Workshop invites children to experience the fun of
on its Corporate Mission and Seven Guiding Principles, and carries out a variety
science with the aim of nurturing future engineers. In addition to these key activi-
of activities accordingly.
Philosophy
ties undertaken by Mitsubishi Electric, employees at Group affiliates in Japan and
overseas are strongly committed to philanthropic activities, participating in
As a corporate citizen committed to meeting societal needs and expectations, the
various volunteer activities and supporting local social welfare organizations and
Mitsubishi Electric Group will make full use of the resources it has at hand to
sports teams.
contribute to creating an affluent society in partnership with its employees.
Policies
Foundations
• We shall carry out community-based activities in response to societal needs in
The Mitsubishi Electric America Foundation and Mitsubishi Electric Thai
the fields of social welfare and global environmental conservation.
Foundation, both founded in 1991, also carry out various activities in the spirit of
• We shall contribute to developing the next generation through activities that
the Mitsubishi Electric Group’s Philosophy and Policies. The Mitsubishi Electric
support the promotion of science and technology, culture and arts, and sports.
America Foundation, with the cooperation of its branches in the United States,
helps young people with disabilities to become employed and participate more
Community Contributions and Human Resource Development Activities
fully in society. The Mitsubishi Electric Thai Foundation, in addition to providing
The Mitsubishi Electric SOCIO-ROOTS Fund matching-gift program supports such
scholarships to university students and supporting a school lunch program for
beneficiaries as social welfare facilities through donations, with the Company
grade school students, has been promoting employee-involved volunteer activities
making contributions equivalent in value to the donations of employees. The
that support education and environmental protection.
“Satoyama” Woodland Preservation Project focuses on restoring the natural envi-
“Satoyama” Woodland Preservation Project
Job Assistance for People with Disabilities (the United States)
The Mitsubishi Electric Science Workshop
Local Group companies engaging in joint planting activities (Thailand)
“Mouth and Foot Painting Artists of the World Exhibition”
(Mitsubishi Electric Building Techno-Service Co., Ltd.)
Supporting the Special Olympics
(Mitsubishi Electric Europe B.V. Italian Branch)
38 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Initiatives to Create Value
Initiatives Related to the Value Chain
Management
CSR Materiality and SDGs Management
Initiatives/External Evaluation
Process of Identification and Review of CSR Materiality
Management of CSR Materiality
Status of Communication
Results of Reader Surveys
Dialogues with Experts
Measures for Internal Dissemination
ESG Information Disclosure List (CSR website)
President’s Message
CSR at Mitsubishi Electric
Corporate Strategy
Mitsubishi Electric’s Business Segments
Initiatives that Contribute to Addressing Social Issuse
CSR Management
CSR Materiality
Initiatives to Address the SDGs
Communication with Stakeholders
Corporate Governance
Compliance
Tax Policy
Risk Management
Our Approach to Information Security
Research and Development
Intellectual Property
Communication with Shareholders and Investors
Responsibility to Customers
Human Rights
Labor Practices
Supply Chain Management
Philanthropic Activities
ISO26000
GRI Standards
Japan MOE Guideline Comparison Table
Governance
Environment
Social
About the Report
Guideline Comparison Table
ESG Survey Index
More information related to CSR at the Mitsubishi Electric Group, is published on our website
web
CSR
https://www.MitsubishiElectric.com/en/sustainability/csr/index.html
Environment
https://www.MitsubishiElectric.com/en/sustainability/environment/index.html
About
https://www.MitsubishiElectric.com/en/about/index.html
Overview of CSR-related information disclosure
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
39
Directors and Executive Officers
Directors (As of June 26, 2020)
Executive Officers (As of April 1, 2020)
Masaki Sakuyama ............................Chairman
Takeshi Sugiyama
Masahiko Sagawa ............................Member of the Audit Committee
Shinji Harada .................................... Member of the Nomination Committee,
Member of the Compensation Committee
Tadashi Kawagoishi ..........................Member of the Compensation Committee
Takashi Sakamoto ............................Member of the Audit Committee
Kei Uruma
Mitoji Yabunaka ................................ Chairman of the Nomination Committee,
Member of the Compensation Committee
Hiroshi Obayashi .............................. Member of the Nomination Committee,
Chairman of the Audit Committee,
Attorney-at-Law
Kazunori Watanabe .......................... Member of the Audit Committee,
Chairman of the Compensation Committee,
Certified Public Accountant,
Registered Tax Accountant
Hiroko Koide ..................................... Member of the Nomination Committee,
Member of the Compensation Committee
Takashi Oyamada ............................. Member of the Nomination Committee,
Member of the Audit Committee,
Senior Advisor, MUFG Bank, Ltd.
Representative Executive Officers (As of April 1, 2020)
Takeshi Sugiyama
Yasuyuki Ito
Kei Uruma
President & CEO:
Takeshi Sugiyama
Senior Vice Presidents:
Yasuyuki Ito .......................................In charge of Export Control and Building Systems
Kei Uruma ......................................... In charge of Corporate Strategic Planning and
Operations of Associated Companies
Satoshi Matsushita ...........................In charge of Business Innovation
Hiroshi Onishi ...................................In charge of Automotive Equipment
Yoshikazu Miyata ..............................In charge of Factory Automation Systems
Tadashi Matsumoto .......................... In charge of Living Environment & Digital Media
Equipment
Executive Officers:
Masahiro Fujita .................................In charge of IT and Research & Development
Jun Nagasawa ..................................In charge of Advertising and Domestic Marketing
Shinji Harada .................................... In charge of General Affairs, Human Resources and
Public Relations
Tadashi Kawagoishi ..........................In charge of Accounting and Finance
Takakazu Murozono .........................In charge of Auditing and Legal Affairs & Compliance
Koichi Orito .......................................In charge of Information Systems & Network Service
Juichi Shikata ...................................In charge of Purchasing
Yoshihisa Hara ..................................In charge of Electronic Systems
Atsuhiro Yabu .................................... In charge of Information Security and Total Productivity
Management & Environmental Programs
Satoshi Kusakabe ............................. In charge of Government & External Relations, Export
Control and Intellectual Property
Yoji Saito ...........................................In charge of Global Strategic Planning & Marketing
Hideki Fukushima .............................In charge of Public Utility Systems
Noriyuki Takazawa ............................In charge of Energy & Industrial Systems
Yuzuru Saito ......................................In charge of Semiconductor & Device
40 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Organization (As of June 26, 2020)
Corporate Auditing Div.
Corporate Marketing Group
Board of Directors
Chairman
Nomination
Committee
Audit
Committee
Compensation
Committee
Corporate Strategic
Planning Div.
Corporate Information
Security Div.
Corporate IT Strategy Div.
Associated
Companies Div.
Audit Committee Office
Government &
External Relations Div.
Executive Officers’
Meeting
Corporate
Administration Div.
Corporate Human
Resources Div.
Corporate
Accounting Div.
Corporate Finance Div.
Corporate
Purchasing Div.
Public Relations Div.
Corporate
Advertising Div.
Corporate Legal &
Compliance Div.
Corporate Export
Control Div.
Global Strategic Planning &
Marketing Group
Corporate Total Productivity
Management & Environmental
Programs Group
Corporate Research and
Development Group
Business Innovation Group
Information Systems &
Network Service Group
Public Utility Systems Group
Energy & Industrial
Systems Group
Building Systems Group
Corporate Licensing Div.
Electronic Systems Group
Corporate Intellectual
Property Div.
Living Environment & Digital
Media Equipment Group
Factory Automation
Systems Group
Automotive Equipment Group
Semiconductor & Device Group
Market Planning & Administration Dept.
Compliance Dept.
Marketing Research & Business Development Dept.
Olympic and Paralympic Promotion Dept.
Branch Offices (Hokkaido, Tohoku, Kanetsu, Kanagawa,
Hokuriku, Chubu, Kansai, Chugoku, Shikoku, Kyushu)
Global Planning & Administration Div.
Compliance Dept.
Regional Marketing Div.
Regional Strategic Development Div.
Regional Corporate Offices
Americas (U.S.A.)
Europe (U.K.)
Asia (Singapore)
China
Taiwan
Planning & Administration Dept.
Compliance Dept.
Corporate Productivity Engineering & Logistics Dept.
Corporate Quality Assurance Planning Dept.
Corporate Environmental Sustainability Group
Design Systems Engineering Center
Manufacturing Engineering Center
Component Production Engineering Center
Planning & Administration Dept.
Compliance Dept.
Advanced Technology R&D Center
Information Technology R&D Center
Industrial Design Center
Communication Systems Engineering Center
Business Innovation Strategy Div.
Business Innovation Projects Div.
Planning & Administration Dept.
Compliance Dept.
IT Solution Business Development. Dept
Information Systems & Network Service Div.
Smart Public Utility System Business Development Dept.
Planning & Administration Dept.
Compliance Dept.
Engineering Planning Dept.
Public-Use Systems Marketing Div.
Transportation Systems Div.
Overseas Marketing Div.
Telecommunication Systems Sales & Marketing Div.
Plant Engineering & Construction Div.
Branch Offices
Kobe Works, Itami Works, Nagasaki Works, Communication Networks Center
Planning & Administration Dept.
Compliance Dept.
Engineering Planning Dept.
Business Development & Strategic Planning Div.
Transmission & Distribution Systems Marketing Div.
Power & Energy Systems Marketing Div.
Nuclear Energy, Advanced Magnetic & Medical Systems Marketing Div.
Power Plant Engineering & Construction Center
Branch Offices
Energy Systems Center, Transmission & Distribution Systems Center,
Power Distribution Systems Center
Planning & Administration Dept.
Compliance Dept.
Engineering Planning Dept.
Advanced Technology Development Center
Domestic Marketing Div.
Overseas Marketing Div.
Building Systems Field Operation Div.
Branch Offices
Inazawa Works
Electronic Systems Compliance Dept.
Planning & Administration Dept.
Defense Systems Div.
Space Systems Div.
Integrated Sensing System Div.
Branch Offices
Communication Systems Center, Kamakura Works
Planning & Administration Dept.
Compliance Dept.
Engineering Dept.
Branding Strategy Dept.
External Relations Dept.
Customer Satisfaction Promotion Dept.
Marketing & Operations Strategic Planning Dept.
Eco-Facility Systems Marketing Dept.
Air-Conditioning & Refrigeration Systems Div.
Overseas Air-Conditioning & Refrigeration Systems Div.
Lighting, Ventilation, Home Equipment Div.
Home Appliances & Digital Media Equipment Div.
IoT Life Solution Business Strategy Center
Living Environment Systems Laboratory
Branch Offices
Nakatsugawa Works, Air-Conditioning & Refrigeration Systems Works,
Shizuoka Works, Kyoto Works, Gunma Works
Planning & Administration Dept.
Compliance Dept.
Industrial Products Marketing Div.
Industrial Automation Marketing Div.
Overseas Marketing Div.
Customer Technical Services Div.
Branch Offices
Nagoya Works, Fukuyama Works
Planning & Administration Dept.
Automotive Equipment Compliance Dept.
Automotive Equipment Marketing Div.
Automotive Electronics Development Center
Branch Offices
Himeji Works, Sanda Works
Planning & Administration Dept.
Compliance Dept.
Semiconductor & Device Marketing Div. A
Semiconductor & Device Marketing Div. B
LCD Div.
Branch Offices
Power Device Works, High Frequency & Optical Device Works
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
41
Major Subsidiaries and Affiliates (As of March 31, 2020)
Manufacturing
Sales/Installation/Services
Comprehensive Sales Companies
Energy and
Electric Systems
Toyo Electric Corporation
Mitsubishi Electric Building Techno-Service Co., Ltd.
Mitsubishi Electric Control Panel Corporation
Mitsubishi Electric Plant Engineering Corporation
Tada Electric Co., Ltd.
Mitsubishi Electric Control Software Corporation
Industrial
Automation
Systems
Mitsubishi Electric Power Products, Inc.
Ryoden Elevator Construction, Ltd.
Mitsubishi Electric Shanghai Electric Elevator Co., Ltd.
Ryoko Co., Ltd.
Mitsubishi Elevator Asia Co., Ltd.
Mitsubishi Elevator Korea Co., Ltd.
Taiwan Mitsubishi Elevator Co., Ltd.
RYO-SA BUILWARE Co., Ltd.
Mitsubishi Elevator Hong Kong Co., Ltd.
Mitsubishi Elevator (Thailand) Co., Ltd.
Toshiba Mitsubishi-Electric Industrial Systems Corporation
Hitachi Mitsubishi Hydro Corporation
Shanghai Mitsubishi Elevator Co., Ltd.
AG MELCO Elevator Co. L.L.C.
DB Seiko Co., Ltd.
Mitsubishi Electric Automotive America, Inc.
Mitsubishi Electric Thai Auto-Parts Co., Ltd.
Mitsubishi Electric Automotive (China) Co., Ltd.
Mitsubishi Electric Automotive de Mexico, S.A. de C.V.
Mitsubishi Electric Automotive Czech s.r.o.
Mitsubishi Electric Automation Manufacturing
(Changshu) Co., Ltd.
Setsuyo Astec Corporation
Ryowa Corporation
Mitsubishi Electric Mechatronics
Engineering Corporation
Meldas System Engineering Corporation
Mitsubishi Electric Mechatronics Software Corporation
Mitsubishi Electric Automation (Hong Kong) Ltd.
Mitsubishi Electric Automation Korea Co., Ltd.
Mitsubishi Electric Dalian Industrial Products Co., Ltd.
SETSUYO ENTERPRISE CO., LTD.
Shizuki Electric Co., Inc.
Shihlin Electric & Engineering Corporation
Information and
Communication
Systems
Mitsubishi Electric TOKKI Systems Corporation
Mitsubishi Electric Information Network Corporation
Mitsubishi Precision Co., Ltd.
SPC Electronics Corporation
Seiryo Electric Co., Ltd.
Miyoshi Electronics Corporation
Mitsubishi Electric Information Systems Corporation
Mitsubishi Space Software Co., Ltd.
Mitsubishi Electric Business Systems Co., Ltd.
Mitsubishi Electric Micro-Computer Application
Software Co., Ltd.
Electronic
Devices
Melco Display Technology Inc.
Melco Power Device Corporation
Vincotech Holdings S.à r.l.
Home Appliances
Others
Mitsubishi Electric Lighting Corporation
Mitsubishi Electric Home Appliance Co., Ltd.
Mitsubishi Electric Consumer Products (Thailand) Co., Ltd.
Shanghai Mitsubishi Electric & Shangling
Air-Conditioner and Electric Appliance Co., Ltd.
Mitsubishi Electric (Guangzhou) Compressor Co., Ltd.
Mitsubishi Electric Hydronics & IT Cooling Systems S.p.A.
Siam Compressor Industry Co., Ltd.
Mitsubishi Electric Air Conditioning Systems Europe Ltd.
Kang Yong Electric Public Co., Ltd.
Itec Hankyu Hanshin Co., Ltd.
Melco Semiconductor Engineering Corporation
Mitsubishi Electric Living Environment
Systems Corporation
Mitsubishi Electric Life Network Co., Ltd.
Mitsubishi Electric Air Conditioning &
Refrigeration Equipment Sales Co., Ltd.
Mitsubishi Electric Air Conditioning &
Refrigeration Systems Co., Ltd.
Melco Facilities Corporation
Mitsubishi Electric Kang Yong Watana Co., Ltd.
Mitsubishi Electric Air-Conditioning &
Visual Information Systems (Shanghai) Ltd.
Mitsubishi Electric Trading Corporation
Mitsubishi Electric Engineering Co., Ltd.
Mitsubishi Electric Logistics Corporation
Mitsubishi Electric System & Service Co., Ltd.
Mitsubishi Electric Life Service Corporation
The Kodensha Co., Ltd.
iPLANET Inc.
Melco Trading (Thailand) Co.,Ltd.
Mitsubishi Electric Credit Corporation
KITA KOUDENSHA Corporation
Chiyoda Mitsubishi Electric Co., Ltd. and
other regional comprehensive sales
companies (9 companies)
Mitsubishi Electric Europe B.V.
Mitsubishi Electric US, Inc.
Mitsubishi Electric & Electronics
(Shanghai) Co., Ltd.
Mitsubishi Electric (H.K.) Ltd.
Mitsubishi Electric Taiwan Co., Ltd.
Mitsubishi Electric Asia Pte. Ltd.
Mitsubishi Electric Australia Pty. Ltd.
Ryoden Corporation
Kanaden Corporation
Mansei Corporation
Notes:
1. Comprehensive sales companies include several companies that are responsible for selling products from a number of businesses, and therefore these are placed into their own separate category rather than grouped by
business segment.
2. Consolidated subsidiaries are shaded in , while equity method companies are shaded in .
3. Toyo Electric Corporation changed its corporate name to Mitsubishi Electric Public Utility Equipment Corporation on April 1, 2020.
4. Mitsubishi Electric Business Systems Co., Ltd. changed its corporate name to Mitsubishi Electric IT Solutions Corporation on April 1, 2020.
5. As of the end of March 2020, the numbers of consolidated subsidiaries and equity method companies are 203 and 39, respectively.
42 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
Financial Section
Contents
44 Five-Year Summary
45 Analysis of Financial Position, Operating Results and
Cash Flows
52 Research and Development Expenditures / Capital
Expenditures
53 Consolidated Statement of Financial Position
55 Consolidated Statement of Profit or Loss
56 Consolidated Statement of Comprehensive Income
57 Consolidated Statement of Changes in Equity
58 Consolidated Statement of Cash Flows
43
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Mitsubishi Electric Corporation and Subsidiaries
Years ended March 31
U.S. GAAP
2016
2017
2018
2018
IFRS
2019
Yen (millions)
2020
Revenue
Operating profit
¥
4,394,353
¥
4,238,666
¥
4,431,198
¥
4,444,424
¥
4,519,921
¥
4,462,509
301,172
270,104
318,637
327,444
290,477
Profit before income taxes
318,476
296,249
364,578
353,206
315,958
228,494
210,493
271,880
255,755
226,648
259,661
281,986
221,834
Net profit attributable to Mitsubishi Electric Corp.
stockholders
Total assets
4,059,941
4,172,270
4,264,559
4,305,580
4,356,211
4,409,771
Cash and cash equivalents
574,170
662,469
599,199
599,199
514,224
Bonds and borrowings
404,039
352,124
311,485
311,950
298,438
Mitsubishi Electric Corp. stockholders' equity
1,838,773
2,039,627
2,259,355
2,294,174
2,399,946
Cash flows from operating activities
366,677
365,950
240,450
265,768
239,817
Cash flows from investing activities
(255,443)
(148,632)
(178,219)
(182,015)
(210,668)
Free cash flows
111,234
217,318
62,231
83,753
29,149
Cash flows from financing activities
(82,144)
(123,495)
(128,291)
(149,813)
(112,067)
Dividends paid
R&D expenditures
Capital expenditures (Based on the recognized
value of property, plant and equipment)
57,963
57,963
68,696
68,696
85,871
202,922
201,330
210,308
210,308
212,794
177,801
175,542
181,513
181,513
198,442
537,559
267,008
2,429,743
395,834
(203,997)
191,837
(156,454)
85,871
206,846
227,450
Depreciation
¥
145,249
¥
141,584
¥
154,559
¥
153,161
¥
152,315
¥
184,842
Per Share Amounts:
Earnings per share attributable to Mitsubishi
Electric Corp. stockholders (Yen)
Basic
Diluted
Cash dividends declared (Yen)
¥
106.43
¥
98.07
¥
126.70
¥
119.19
¥
105.65
¥
103.41
―
27
―
27
―
40
119.19
105.65
40
40
103.41
40
Mitsubishi Electric Corp. stockholders' equity (Yen)
¥
856.52
¥
950.37
¥
1,052.96
¥
1,069.19
¥
1,118.83
¥
1,132.69
Financial Ratios:
Operating profit ratio (%)
Return on revenue (%)
Return on equity (ROE) (%)
Return on assets (ROA) (%)
Mitsubishi Electric Corp. stockholders'
equity ratio (%)
Bonds and borrowings to total assets (%)
6.9
5.2
12.4
5.6
45.3
10.0
6.4
5.0
10.9
5.1
48.9
8.4
7.2
6.1
12.6
6.4
53.0
7.3
7.4
5.8
11.7
6.0
53.3
7.2
6.4
5.0
9.7
5.2
55.1
6.9
Employees (persons)
135,160
138,700
142,340
142,340
145,817
Total Shareholder Return (%)
(Comparison Index：
Nikkei stock average) (%)
84.5
87.3
115.6
98.4
125.7
111.7
125.7
111.7
109.0
110.4
5.8
5.0
9.2
5.1
55.1
6.1
146,518
105.6
98.5
1. The consolidated financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRS) from the year
ended March 31, 2019 and also for the fiscal year ended March 31, 2018 as comparative information.
2. The balance of bonds and borrowings and the ratio of bonds and borrowings to total assets include lease liabilities until the fiscal year ended March 31,
2019.
3. R&D expenditures include elements spent on quality improvements which constitute manufacturing costs.
4. Diluted earnings per share attributable to Mitsubishi Electric Corp. stockholders is equal to Basic earnings per share attributable to Mitsubishi Electric
Corp. stockholders under IFRS, as no dilutive securities existed.
5. Total shareholder return is calculated based on the stock price as of March 31, 2015.
44
Five-Year SummaryMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Overview
The economy in the fiscal year ended March 31, 2020 generally saw a gradual and slow recovery in Japan, the U.S. and
Europe until the end of 2019 but the corporate sector slowed down. The growth of China also slowed down with the
corporate sector experiencing a slowdown in exports and capital expenditures for fixed assets. The expansion of the novel
coronavirus diseases (COVID-19) and its impact put great downward pressure on the global economy from the beginning of
2020.
Under these circumstances, the Mitsubishi Electric Group has been working even harder than before to promote growth
strategies rooted in its advantages, while continuously implementing initiatives to strengthen its competitiveness and
business structure.
As a result, the business performance for the fiscal year ended March 31, 2020 is as follows.
Yen(billions)
Revenue
Operating profit
Profit before income taxes
Net profit attributable to Mitsubishi
Electric Corp. stockholders
2019
2020
year on year
4519.9
4462.5
down 57.4
290.4
315.9
226.6
259.6
281.9
down 30.8
down 33.9
221.8
down 4.8
Revenue
Revenue for the fiscal year ended March 31, 2020 decreased by 57.4 billion yen from the previous fiscal year to 4,462.5
billion yen due primarily to a decrease in revenue of Industrial Automation Systems segment, despite that revenue
increased in Information and Communication Systems, Home Appliances, Energy and Electric Systems, and Electronic
Devices segments. In Industrial Automation Systems segment, revenue for the factory automation system business
decreased due mainly to stagnant demand for capital expenditures worldwide and revenue for the automotive equipment
business decreased due to a slowdown in demand for new cars worldwide.
Other factors that caused the decrease in revenue include the yen appreciating against foreign currencies and the impact
of COVID-19 in the fourth quarter.
2019
Average exchange
rate
Consolidated total
－
US$
EURO
CNY
¥111
¥128
¥16.5
2020
Average exchange
rate
－
¥109
¥121
Impact of exchange rate
fluctuations on revenue
About ¥62.0 billion decrease
About ¥9.0 billion decrease
About ¥20.0 billion decrease
¥15.6
About ¥17.0 billion decrease
45
Analysis of Financial Position, Operating Results and Cash FlowsMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Operating Profit
Operating profit decreased by 30.8 billion yen from the previous fiscal year to 259.6 billion yen due primarily to a decrease
in operating profit of Industrial Automation System segment, despite that operating profit increased in Home Appliances,
Information and Communication Systems, and Electronic Devices segments. Operating profit ratio decreased by 0.6% from
the previous fiscal year to 5.8% due mainly to increased cost ratio.
The cost ratio increased by 1.2% due primarily to lowered operation, a shift in product mix and upfront investment for
growth drivers of Industrial Automation Systems segment in addition to the yen appreciating against other currencies.
Selling, general and administrative expenses decreased by 26.2 billion yen from the previous fiscal year and selling,
general and administrative expenses to revenue ratio improved by 0.3%.
Other profit (loss) increased by 13.6 billion yen from the previous fiscal year due mainly to sale of land and other profit
(loss) to revenue ratio improved by 0.3%.
Profit Before Income Taxes
Profit before income taxes decreased by 33.9 billion yen from the previous year to 281.9 billion yen due primarily to a
decrease in operating profit, an increase in financial expenses caused by loss on foreign exchange, and a decrease in
share of profit of investments accounted for using the equity method. Profit before income taxes to revenue ratio was 6.3%.
Net Profit Attributable to Mitsubishi Electric Corp. Stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders decreased by 4.8 billion yen from the previous year to
221.8 billion yen due primarily to decreased profit before income taxes despite reduced income taxes as a result of the
reorganization of its affiliated company outside Japan. Net profit attributable to Mitsubishi Electric Corporation stockholders
to revenue ratio was 5.0%.
ROE decreased by 0.5% from the previous fiscal year to 9.2%.
46
Analysis of Financial Position, Operating Results and Cash FlowsMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Results by Business Segment
Revenue by Business Segment
Years ended March 31
Energy and Electric
Systems
Industrial Automation
Systems
Information and
Communication Systems
Electronic Devices
Home Appliances
Others
Subtotal
Eliminations
Consolidated total
2016
U.S. GAAP
2017
2018
2018
IFRS
2019
Yen (millions)
2020
¥
1,264,604 ¥
1,227,906 ¥
1,241,952
¥
1,253,062 ¥
1,296,745 ¥
1,307,389
1,321,937
1,310,136
1,444,928
1,444,928
1,467,633
561,119
447,754
436,068
438,184
426,269
211,580
982,064
707,746
5,049,050
(654,697)
4,394,353 ¥
186,554
1,004,415
713,603
4,890,368
(651,702)
4,238,666 ¥
202,294
1,049,369
764,346
5,138,957
(707,759)
4,431,198
¥
202,294
1,049,369
659,059
5,046,896
(602,472)
4,444,424 ¥
199,908
1,074,044
676,736
5,141,335
(621,414)
4,519,921 ¥
¥
1,349,429
455,596
208,750
1,090,248
659,636
5,071,048
(608,539)
4,462,509
Operating Profit by Business Segment
Years ended March 31
Energy and Electric
Systems
Industrial Automation
Systems
Information and
Communication Systems
Electronic Devices
Home Appliances
Others
Subtotal
Eliminations and
Corporate
Consolidated total
2016
U.S. GAAP
2017
2018
2018
IFRS
2019
Yen (millions)
2020
¥
50,342 ¥
44,319 ¥
51,710
¥
65,457 ¥
82,501 ¥
82,309
159,160
140,073
190,826
187,350
142,563
14,999
16,870
63,856
23,620
328,847
12,700
8,382
69,696
23,214
298,384
11,987
14,554
56,057
23,900
349,034
11,340
14,164
55,496
24,034
357,841
12,247
1,442
59,451
24,172
322,376
(27,675)
(28,280)
(30,397)
(30,397)
(31,899)
68,962
26,457
8,701
78,206
26,050
290,685
(31,024)
¥
301,172 ¥
270,104 ¥
318,637
¥
327,444 ¥
290,477 ¥
259,661
Energy and Electric Systems
The market of the social infrastructure systems business saw buoyant investment in the public utility for preventing and
reducing disaster risks in Japan, also buoyant investment in train system business worldwide, and continued demand in the
power systems in Japan due to the electricity system reform. In this environment, the business saw an increase in orders
from the previous fiscal year due primarily to an increase in the power systems business worldwide and the public utility and
transportation systems businesses in Japan. Revenue for this business remained substantially unchanged from the
previous fiscal year due mainly to a decrease in thermal power generation business worldwide despite an increase in
orders.
The market of the building systems business saw decreased demand for high-end, large-scale office projects in China,
continued market stagnation in the Middle East, and an increase in renewals of elevators and escalators in Japan. In this
environment, the business saw a decrease in orders from the previous fiscal year due primarily to market stagnation in
China and the Middle East. Revenue for this business remained substantially unchanged from the previous fiscal year due
mainly to an increase in new installations of elevators and escalators in Japan, mainly in the Tokyo metropolitan area
despite a decrease in orders.
As a result, revenue for this segment increased by 1% from the previous fiscal year to 1,307.3 billion yen.
Operating profit decreased by 0.1 billion yen from the previous fiscal year to 82.3 billion yen, due primarily to the yen
appreciating against other currencies and a shift in project portfolios.
47
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Industrial Automation Systems
The market of the factory automation systems business saw continued stagnation in demand for automotive-related
investments worldwide, semiconductor and machinery-related investments in Japan, and investments related to organic
light emitting diodes (OLED) and smartphones outside Japan. In this environment, the business saw decreases in both
orders and revenue from the previous fiscal year due primarily to the yen appreciating against other currencies and a
decrease in sales of factory automation devices, processing machines and numerical controllers.
The market of the automotive equipment business saw a slowdown in demand for new cars worldwide and the impact of
COVID-19 becoming actual in the fourth quarter, while the market of electric-vehicle related equipment expanded
worldwide. In this environment, the business saw decreases in both orders and revenue from the previous fiscal year due
mainly to a decrease in sales of electrical components and the yen appreciating against other currencies, while sales of
electric-vehicle related equipment such as motors and inverters increased.
As a result, revenue for this segment decreased by 8% from the previous fiscal year to 1,349.4 billion yen.
Operating profit decreased by 73.6 billion yen from the previous fiscal year to 68.9 billion yen due primarily to a decrease
in revenue, a shift in product mix and upfront investment for growth drivers.
Information and Communication Systems
The market of the telecommunications systems business saw buoyant investment by telecommunications carriers to deal
with increased traffic caused mainly by the expanding 5G communications networks. In this environment, the business saw
increases in both orders and revenue from the previous fiscal year due primarily to increased demand for communications
infrastructure equipment.
The market of the information systems and service business saw increased demand relating to the cloud utilization, the
enhancement of cyber-security and the improvement of work efficiency. In this environment, the business saw increases in
both orders and revenue from the previous fiscal year due mainly to an increase in the system integrations business.
The electronic systems business saw an increase in orders from the previous fiscal year due primarily to an increase in
large-scale projects for the space systems business. The revenue also increased from the previous fiscal year due mainly
to an increase in large-scale projects for the defense systems business.
As a result, revenue for this segment increased by 7% from the previous fiscal year to 455.5 billion yen.
Operating profit increased by 14.2 billion yen from the previous fiscal year to 26.4 billion yen due primarily to an increase
in revenue and a shift in project portfolios.
Electronic Devices
The market of the electronic devices saw emerging demand relating to 5G communications networks and next-generation
data centers, and accelerated development and market launches of electric vehicles. In this environment, the business saw
an increase in orders and revenue also increased by 4% from the previous fiscal year to 208.7 billion yen due primarily to
increased demand for high frequency and optical devices, particularly for optical communication devices, and power
modules used in automotive applications.
Operating profit increased by 7.2 billion yen from the previous fiscal year to 8.7 billion yen due mainly to an increase in
revenue and a shift in product mix.
Home Appliances
The market of the home appliances saw a heightened awareness of environmental issues causing increased demand of
ductless air conditioners in North America and heat-pump hot water and heating systems in Europe. The demand for
industrial air conditioners for schools also increased in Japan. In this environment, the business saw an increase in revenue
by 2% from the previous fiscal year to 1,090.2 billion yen due primarily to an increase in sales of air conditioners for Japan,
North America and Europe.
Operating profit increased by 18.7 billion yen from the previous fiscal year to 78.2 billion yen due mainly to an increase in
revenue and cost improvement.
Others
Revenue decreased by 3% from the previous fiscal year to 659.6 billion yen due primarily to decreases in procurements
and logistics for the Mitsubishi Electric Group at affiliated companies.
Operating profit increased by 1.8 billion yen from the previous fiscal year to 26.0 billion yen due mainly to cost
improvements.
48
Analysis of Financial Position, Operating Results and Cash FlowsMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Results by Geographic Segment
Revenue from External Customers by the Location of Customers
Years ended March 31
2016
U.S. GAAP
2017
2018
¥ 2,521,194 ¥ 2,405,552 ¥ 2,423,626
Yen (millions)
IFRS
2019
¥ 2,438,942 ¥ 2,556,644 ¥ 2,610,322
2020
2018
Japan
North America
Asia (excluding Japan)
Europe
Others
447,578
963,684
369,978
91,919
422,259
417,423
419,121
429,451
940,150
1,075,683
1,089,176
1,013,883
384,075
86,630
431,316
83,150
431,316
65,869
453,748
66,195
432,096
919,973
437,214
62,904
Consolidated total
¥ 4,394,353 ¥ 4,238,666 ¥ 4,431,198
¥ 4,444,424 ¥ 4,519,921 ¥ 4,462,509
Japan
Revenue increased by 2% year on year to 2,610.3 billion yen primarily due to increases in the social infrastructure systems,
electronic systems, and air conditioner businesses, despite a decrease in the factory automation systems business.
North America
Revenue increased by 1% year on year to 432.0 billion yen primarily due to an increase in the air conditioner business,
despite decreases in the factory automation systems and the automotive equipment businesses.
Asia (excluding Japan)
Revenue decreased by 9% year on year to 919.9 billion yen due to decreases in the building systems, factory automation
systems, and air conditioner businesses.
In China, revenue decreased by 14% year on year to 420.5 billion yen primarily due to decreases in the factory
automation systems and air conditioner businesses.
Europe
Revenue decreased by 4% year on year to 437.2 billion yen due to decreases in the factory automation systems and
automotive equipment businesses, despite an increase in the air conditioner business.
Others
Revenue in other regions, including Oceania, decreased by 5% year on year to 62.9 billion yen.
49
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Financial Position
Due to the application of IFRS 16 Lease, the Mitsubishi Electric Group has added lease assets of 93.0 billion yen mainly as
property, plant and equipment, and liabilities of 95.1 billion yen as bonds, borrowings and lease liabilities as of the date of
the initial application.
Total assets as of the end of this fiscal year increased from the end of the previous fiscal year by 53.5 billion yen to
4,409.7 billion yen. The change in balance of total assets was mainly attributable to increases in property, plant and
equipment by 93.8 billion yen and cash and cash equivalents by 23.3 billion yen despite decreases in inventories by 35.2
billion yen and other financial assets by 33.4 billion yen.
Inventories decreased due mainly to the slowdown of the Industrial Automation Systems segment, reduced stock of the
Home Appliances segment caused by the consumption tax hike and increased demand for industrial air conditioners for
schools, and the yen appreciating against other currencies. Inventory turnover improved by 0.23 from the end of the
previous year to 6.43.
Total liabilities increased from the end of the previous fiscal year by 25.8 billion yen to 1,870.9 billion yen. The
outstanding balances of bonds, borrowings and lease liabilities increased by 78.5 billion yen, while trade payables
decreased by 32.3 billion yen, and net defined benefit liabilities also decreased by 12.8 billion yen. Meanwhile, bonds and
borrowings decreased by 8.9 billion yen from the end of the previous fiscal year to 267.0 billion yen, with the ratio of bonds
and borrowings to total assets recording 6.1%, representing a 0.2 percentage point decrease compared to the end of the
previous fiscal year.
Mitsubishi Electric Corporation stockholders’ equity increased by 29.7 billion yen compared to the end of the previous
fiscal year to 2,429.7 billion yen. The stockholders’ equity ratio was recorded at 55.1%, representing no changes from the
end of the previous fiscal year. These changes referred to above primarily result from an increase from recording a net
profit attributable to Mitsubishi Electric Corporation stockholders of 221.8 billion yen despite a decrease due to dividend
payment of 85.8 billion yen and a loss in accumulated other comprehensive income of 81.6 billion yen caused by the yen
appreciating against other currencies and a decline in stock prices.
Trade receivables turnover (times)
Inventory turnover (times)
Bonds and borrowings to total assets (%)
Mitsubishi Electric Corp. stockholders'
equity ratio (%)
As of
As of
Mar. 31, 2019
Mar. 31, 2020
YoY changes
3.66
6.20
6.3
55.1
3.59
6.43
6.1
55.1
(0.07)
0.23
(0.2)
0.0
Note: 1. Trade receivables turnover is calculated based on the sum of trade receivables and contract assets.
2. Bonds and borrowings to total assets is calculated based on the balance of borrowings and bonds,
excluding lease liabilities.
50
Analysis of Financial Position, Operating Results and Cash FlowsMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Capital Resources and Funding Liquidity
Basic Policies Regarding Financial Strategies
In order to maintain a solid balance sheet, the Mitsubishi Electric Group continuously strives to improve its cash flow by
enhancing its business performance, achieve greater asset efficiency through inventory reduction initiatives and promotion
of the collection of trade receivables, and improve fund efficiency through more effective use of Group funds.
The Group is promoting capital cost-conscious management in order to further increase its corporate value and will
continue to further improve profitability and capital efficiency by optimizing resource distribution including R&D investments
and capital investments.
As the Group implements its growth strategies, it will use cash on hand and funds from operations for the funds
necessary for capital investment and M&As, while flexibly raising funds from financial institutions as necessary. The Group
will maintain the ratio of bonds and borrowings to total assets below 15% which is one of our management targets to be
continuously and stably achieved in the event of capital procurement from financial institutions, etc.
Status of Cash Flows and Liquidity
Cash flows from operating activities was 395.8 billion yen (cash in) while cash flows from investing activities was 203.9
billion yen (cash out). As a result, free cash flow for the fiscal year ended March 31, 2020 increased by 162.6 billion yen
compared to the previous fiscal year to 191.8 billion yen (net cash in). Meanwhile, cash flows from financing activities was
156.4 billion yen (cash out), and cash and cash equivalents at end of period increased by 23.3 billion yen from the previous
fiscal year to 537.5 billion yen.
Net cash provided by operating activities increased by 156.0 billion yen from the previous fiscal year due primarily to a
decrease in payment for inventories, an increase in collection of trade receivables, and an increase in depreciation caused
by the application of IFRS 16 Leases.
Net cash used in investing activities increased by 6.6 billion yen from the previous fiscal year due primarily to an increase
in proceeds from sale of property, plant and equipment despite an increase in purchase of investment securities and
property, plant and equipment.
Net cash used in financing activities decreased by 44.3 billion yen from the previous fiscal year due mainly to increased
repayment of lease liabilities caused by the application of IFRS 16 Leases.
Status of Funding and Liquidity
The main component within the need for working funds is operating expenses such as costs for purchasing necessary
materials for production, manufacturing costs and selling, general and administrative expenses. The need for funds for
investment is due to components such as capital expenditure and M&As.
Short-term working funds are derived from cash on hand and short-term borrowings from financial institutions. Capital
expenditure and long-term working funds are derived from long-term borrowings from financial institutions and issuance of
corporate bonds while utilizing cash on hand.
The balance of cash and cash equivalents is 537.5 billion yen and the balance of bonds, borrowings and lease liabilities
totaled 377.0 billion yen as of March 31, 2020. Of these, short-term borrowings totaled 52.9 billion yen, bonds and long-
term borrowings totaled 214.0 billion yen, and lease liabilities totaled 109.9 billion yen.
As of March 31, 2020, the Group had unused committed lines of credit amounting to 82.7 billion yen. However, in
preparation for declines in cash inflow resulting from decreases in revenue caused by the COVID-19 situation, the Group is
currently striving to curb expenditures and secure liquidity by increasing borrowings and increasing its unused committed
lines of credit to about 300.0 billion yen, etc.
51
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Reseach and Development Expenditures
Years ended March 31
Energy and Electric
Systems
Industrial Automation
Systems
Information and
Communication Systems
Electronic Devices
Home Appliances
Others
Consolidated total
R&D expenditures
/revenue (％)
2016
U.S. GAAP
2017
2018
2018
IFRS
2019
Yen (billions)
2020
¥
33.7 ¥
35.5 ¥
35.4
¥
35.4 ¥
34.7 ¥
70.8
18.9
10.6
39.8
28.7
66.4
18.2
10.0
41.1
29.7
69.5
17.9
13.4
41.8
32.2
69.5
17.9
13.4
41.8
32.2
70.8
15.3
14.1
43.8
33.9
35.1
67.4
13.4
12.5
44.9
33.2
¥
202.9 ¥
201.3 ¥
210.3
¥
210.3 ¥
212.7 ¥
206.8
4.6
4.7
4.7
4.7
4.7
4.6
Capital Expenditures
Years ended March 31
2016
2017
2018
2018
U.S. GAAP
IFRS
2019
Yen(millions)
2020
Energy and Electric Systems
¥
39,456 ¥
39,574 ¥
30,861
¥
30,861 ¥
27,165 ¥
29,414
Industrial Automation Systems
Information and Communication Systems
Electronic Devices
Home Appliances
Others
Commons
54,653
17,366
15,458
31,448
3,300
16,120
60,233
16,599
9,485
36,295
4,122
9,234
68,376
17,522
17,197
32,849
4,758
9,950
68,376
17,522
17,197
32,849
4,758
9,950
79,257
21,925
21,072
31,199
7,437
10,387
78,722
29,982
31,298
38,720
6,426
12,888
Consolidated total
¥
177,801 ¥
175,542 ¥
181,513
¥
181,513 ¥
198,442 ¥
227,450
* The data above are based on the recognaized value of property, plant and equipment.
52
Research and Development Expenditures / Capital ExpendituresMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Mitsubishi Electric Corporation and Subsidiaries
March 31, 2019 and 2020
2019
Yen (millions)
2020
(Assets)
Cash and cash equivalents
¥
514,224
¥
Trade receivables
Contract assets
Other financial assets
Inventories
Other current assets
Current assets
Investments accounted for using the equity method
Other financial assets
Property, plant and equipment
Goodwill and intangible assets
Deferred tax assets
Other non-current assets
Non-current assets
Total assets
938,264
295,652
48,768
729,098
98,287
537,559
900,430
343,637
56,765
693,890
95,752
2,624,293
2,628,033
197,959
303,834
760,540
137,615
233,087
98,883
196,237
262,367
854,382
146,323
249,830
72,599
1,731,918
1,781,738
¥
4,356,211
¥
4,409,771
53
Consolidated Statement of Financial PositionMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 2019
Yen (millions)
2020
(Liabilities)
Bonds, borrowings and lease liabilities
¥
104,969
¥
Trade payables
Contract liabilities
Other financial liabilities
Accrued expenses
Accrued income taxes
Provisions
Other current liabilities
559,641
138,877
159,579
268,651
24,298
106,006
54,314
133,369
527,307
147,781
160,810
265,059
21,335
99,215
47,789
Current liabilities
1,416,335
1,402,665
Bonds, borrowings and lease liabilities
Net defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Non-current liabilities
Total liabilities
(Equity)
Common stock
Capital surplus
Retained earnings
Accumulated other comprehensive income (loss)
Treasury stock, at cost
Mitsubishi Electric Corp. stockholders' equity
Non-controlling interests
Total equity
193,469
176,087
6,905
10,164
42,096
428,721
1,845,056
243,634
163,240
5,210
10,193
45,970
468,247
1,870,912
175,820
202,834
175,820
202,832
1,960,466
2,071,817
63,809
(2,983)
2,399,946
111,209
2,511,155
(17,802)
(2,924)
2,429,743
109,116
2,538,859
Total liabilities and equity
¥
4,356,211
¥
4,409,771
54
Consolidated Statement of Financial PositionMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Mitsubishi Electric Corporation and Subsidiaries
Years ended March 31, 2019 and 2020
Revenue
Cost of sales
2019
Yen (millions)
2020
¥
4,519,921 ¥
4,462,509
3,186,869
3,200,170
Selling, general and administrative expenses
1,043,294
1,017,075
Other profit (loss)
Operating profit
Financial income
Financial expenses
Share of profit of investments
accounted for using the equity method
Profit before income taxes
Income taxes
Net profit
Net profit attributable to:
719
14,397
290,477
259,661
9,747
4,382
20,116
10,285
7,008
19,048
315,958
281,986
78,304
48,474
237,654
233,512
Mitsubishi Electric Corp. stockholders
226,648
221,834
Non-controlling interests
¥
11,006 ¥
11,678
Earnings per share (attributable to
Mitsubishi Electric Corp. stockholders)
Basic
Diluted
Yen
¥
105.65 ¥
103.41
105.65
103.41
55
Consolidated Statement of Profit or LossMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Mitsubishi Electric Corporation and Subsidiaries
Years ended March 31, 2019 and 2020
Net profit
Other comprehensive income (loss), net of tax
Items that will not be reclassified to net profit
2019
Yen (millions)
2020
¥
237,654
¥
233,512
Changes in fair value of financial assets measured at
fair value through other comprehensive income
(39,284)
(31,874)
Remeasurements of defined benefit plans
12,234
(23,574)
Share of other comprehensive income of investments
accounted for using the equity method
(995)
(1,528)
Total items that will not be reclassified to net profit
(28,045)
(56,976)
Items that may be reclassified to net profit
Exchange differences on translating foreign operations
(6,756)
(49,360)
Net changes in the fair value of cash flow hedges
(37)
20
Share of other comprehensive income of investments
accounted for using the equity method
(2,645)
(2,434)
Total items that may be reclassified to net profit
(9,438)
(51,774)
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to:
(37,483)
(108,750)
200,171
124,762
Mitsubishi Electric Corp. stockholders
189,306
117,132
Non-controlling interests
¥
10,865
¥
7,630
56
Consolidated Statement of Comprehensive IncomeMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Mitsubishi Electric Corporation and Subsidiaries
Years ended March 31, 2019 and 2020
Mitsubishi Electric Corp. stockholders’ equity
2019
Yen (millions)
Common stock Capital surplus
Retained
earnings
Accumulated
other
compre-
hensive
income (loss)
Treasury
stock,
at cost
Total
Non-controlling
interests
Total equity
Balance at beginning of year
¥
175,820
¥
199,442
¥
1,811,348
¥
109,492
¥
(1,928) ¥
2,294,174
¥
103,045
¥
2,397,219
Comprehensive income
Net profit
Other comprehensive
income (loss), net of tax
226,648
226,648
11,006
237,654
(37,342)
(37,342)
(141)
(37,483)
Comprehensive income
―
―
226,648
(37,342)
―
189,306
10,865
200,171
Reclassification
to retained earnings
Dividends
Purchase of treasury stock
Disposal of treasury stock
Transactions with non-
controlling interests and others
8,341
(8,341)
―
―
(85,871)
(85,871)
(5,872)
(91,743)
0
3,392
(1,055)
(1,055)
0
0
(1,055)
0
3,392
3,171
6,563
Balance at end of year
¥
175,820
¥
202,834
¥
1,960,466
¥
63,809
¥
(2,983) ¥
2,399,946
¥
111,209
¥
2,511,155
Mitsubishi Electric Corp. stockholders’ equity
2020
Yen (millions)
Common stock Capital surplus
Retained
earnings
Accumulated
other
compre-
hensive
income (loss)
Treasury
stock,
at cost
Total
Non-controlling
interests
Total equity
Balance at beginning of year
¥
175,820
¥
202,834
¥
1,960,466
¥
63,809
¥
(2,983) ¥
2,399,946
¥
111,209
¥
2,511,155
Cumulative effects of
changes in accounting
policies
Adjusted balance at
beginning of year
Comprehensive income
Net profit
Other comprehensive
income (loss), net of tax
(1,521)
(1,521)
(7)
(1,528)
175,820
202,834
1,958,945
63,809
(2,983)
2,398,425
111,202
2,509,627
221,834
221,834
11,678
233,512
(104,702)
(104,702)
(4,048)
(108,750)
Comprehensive income
―
―
221,834
(104,702)
―
117,132
7,630
124,762
Reclassification
to retained earnings
Dividends
Purchase of treasury stock
Disposal of treasury stock
Transactions with non-
controlling interests and others
(23,091)
23,091
―
―
(85,871)
(85,871)
(7,826)
(93,697)
(844)
842
(785)
844
(785)
0
842
(785)
0
(1,890)
(1,048)
Balance at end of year
¥
175,820
¥
202,832
¥
2,071,817
¥
(17,802) ¥
(2,924) ¥
2,429,743
¥
109,116
¥
2,538,859
57
Consolidated Statement of Changes in EquityMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Mitsubishi Electric Corporation and Subsidiaries
Years ended March 31, 2019 and 2020
Cash flows from operating activities
Net profit
Adjustments to cash flows from operating activities
Depreciation and amortization
Impairment losses
Loss (gain) on sales and disposal of property, plant and equipment,
net
Income taxes
Share of profit of investments accounted for using the equity
method
Financial income and financial expenses
Decrease (increase) in trade receivables
Decrease (increase) in contract assets
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in net defined benefit liabilities
Increase (decrease) in other liabilities
Others, net
Subtotal
Interest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities, net of cash acquired
Proceeds from sale of investment securities, net of cash disposed
Others, net
Cash flows from investing activities
Cash flows from financing activities
Proceeds from bonds and long-term borrowings
Repayments of bonds and long-term borrowings
Increase (decrease) in short-term borrowings, net
Repayments of lease liabilities
Dividends paid to Mitsubishi Electric Corp. stockholders
Purchase of treasury stock
Disposal of treasury stock
Dividends paid to non-controlling interests
Transactions with non-controlling interests
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
2019
Yen (millions)
2020
¥ 237,654 ¥
233,512
176,247
2,645
369
78,304
(20,116)
(5,365)
(13,949)
(26,831)
(82,718)
(3,981)
(20,792)
(11,692)
(29,713)
8,843
288,905
24,788
(2,428)
(71,448)
239,817
210,686
1,332
(10,834)
48,474
(19,048)
(3,277)
23,956
(48,213)
18,504
15,220
(28,582)
(16,113)
(11,172)
9,540
423,985
23,448
(2,284)
(49,315)
395,834
(188,042)
(192,833)
4,170
(29,985)
(13,304)
11,824
4,669
19,571
(24,364)
(20,019)
13,687
(39)
(210,668)
(203,997)
77,604
(91,138)
(2,077)
(9,358)
(85,871)
(1,055)
0
(6,617)
6,445
(112,067)
(2,057)
(84,975)
599,199
¥ 514,224 ¥
35,350
(41,676)
(2,093)
(53,947)
(85,871)
(785)
0
(6,929)
(503)
(156,454)
(12,048)
23,335
514,224
537,559
58
Consolidated Statement of Cash FlowsMITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Cautionary Statement
While the statements herein including the forecast of the Mitsubishi Electric Group are based on assumptions the Group considers to be
reasonable under the circumstances on the date of announcement, actual results may differ significantly from forecasts.
Such factors materially affecting the expectations expressed herein shall include but are not limited to the following:
(1) 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 JPY/US dollar rates
(3) Changes in stock markets, especially in Japan
(4) Changes in balance of supply and demand of products that may affect prices and volume, as well as material procurement
conditions
(5) Changes in the ability to fund raising, especially in Japan
(6) Uncertainties relating to patents, licenses and other intellectual property, including disputes involving patent infringement
(7) New environmental regulations or the arising of environmental issues
(8) Defects in products or services
(9) Litigation and legal proceedings brought and contemplated against the Company or its subsidiaries and affiliates that may
adversely affect operations or finances
(10) Technological change, the development of products using new technology, manufacturing and time-to-market
(11) Business restructuring
(12) Incidents related to information security
(13) Large-scale disasters including earthquakes, typhoons, tsunami, fires and others
(14) Social or political upheaval caused by terrorism, war, pandemics, or other factors
(15) Important matters related to the directors and executive officers, major shareholders and affiliated companies of Mitsubishi Electric
Corporation
59
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
60
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020 Corporate Data / Shareholder Information (As of March 31, 2020)
Corporate Data
Mitsubishi Electric Corporation
Tokyo Building, 2-7-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8310, Japan
Tel: +81(3)3218-2111
Established: January 15, 1921
Paid-in Capital: ¥175,820 million
Shares issued: 2,147,201,551 shares
Employees: 146,518
Major Shareholders
The Master Trust Bank of Japan, Ltd. (Trust Account)
SSBTC CLIENT OMNIBUS ACCOUNT
Japan Trustee Services Bank, Ltd. (Trust Account)
Meiji Yasuda Life Insurance Company
Nippon Life Insurance Company
Japan Trustee Services Bank, Ltd. (Trust Account 7)
Mitsubishi Electric Group Employees Shareholding Union
Japan Trustee Services Bank, Ltd. (Trust Account 5)
JP MORGAN CHASE BANK 385151
Japan Trustee Services Bank, Ltd. (Trust Account 4)
Note: Shareholder ratio calculations deduct 426,598 company-owned shares.
Distribution of Shareholders
Individual et al.
12.6%
Shareholders’ Meeting
The annual meeting of shareholders of the Corporation is regularly held in June
each year. Additionally, special shareholders meetings may be held as necessary.
Stock Exchange Listings
Japan: Tokyo
Europe: London
Number of Shares
(thousands)
Percentage of
Ownership
181,049
120,935
106,511
81,862
61,639
46,530
42,932
40,731
39,170
36,641
8.4%
5.6%
5.0%
3.8%
2.9%
2.2%
2.0%
1.9%
1.8%
1.7%
Foreign Corporations et al. 37.7%
Financial Institutions 41.7%
Other Corporations
5.6%
Traders of
Financial Instruments 2.4%
Stock Price (Yen)
2,500
2,000
1,500
1,000
500
Mitsubishi Electric’s Stock Price
‘17/4
‘18/4
‘19/4
The Nikkei Stock Average is based on information copyrighted by Nihon Keizai Shimbun, Inc.
Nikkei Stock Average
25,000
20,000
15,000
10,000
‘20/4
Nikkei Stock Average
(Yen)
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2020
61
Please address inquiries for further information to:
Mitsubishi Electric Corporation, Corporate Finance Div.
Tokyo Building, 2-7-3, Marunouchi, Chiyoda-ku, Tokyo 100-8310, Japan
Phone: 81-3-3218-2391
X-X01-0-CA565-A 本2007