The company's goal for fiscal year 2025 is to achieve sales of 5 trillion yen and increase the profit margin ROE (return on equity) to 10%.
The company hopes to increase its cash value by 3.4 trillion yen within five years, while giving priority to growth, air-conditioning and cooling systems, building systems, electrification/ADAS, and power equipment related businesses.
The person in charge of the company said: "The company will celebrate its 100th anniversary on February 1, 2021. Facing the next 100 years, the company will strive to achieve sustainable development through all activities in the management policy.
The company also stated that it will take seriously a series of labor issues that have occurred in recent years, especially regarding information leakage caused by unauthorized access, and improper quality behaviors, and conduct profound reflections. Will continue to strive to become the Mitsubishi Electric that will be needed for the next 100 years. "
In addition, on the occasion of the company's 100th anniversary, the company revised its corporate philosophy system.
After the revision, the corporate philosophy was changed to "The Mitsubishi Electric Group will contribute to the realization of a vibrant and comfortable society through technological innovation and the use of unlimited creativity."
So far, Mitsubishi Electric has established its "corporate values" through seven code of action, and changed its company statement to "Changes for the Better."
In addition, the company has added "Seven Action Programs" to the "Corporate Values". The outline emphasizes people-oriented, and "employee first" has become the most important point for problems that arise in labor relations.
The company’s five priority growth business goals set by 2025 are as follows: 1. FA control system sales exceed 350 billion yen; 2. Air conditioning and cooling system sales target is 1.1 trillion yen; 3. 2020 building systems More than 650 billion yen, 4. Electrification/ADAS compared to 100 billion yen in 202, to exceed 30 billion yen, and 5. Power equipment to exceed 240 billion yen.
The resource input for the new 5-year mid-term business plan is 2.8 trillion yen, which greatly exceeds the previous plan of 2 trillion yen. Increase the investment ratio of key growth projects from 44% to 60%.
In addition, strategic investment such as M&A increased from 100 billion yen to 500 billion yen to promote the development of internal business DX (digital transformation) in the direction of "strengthening the operating foundation" and strengthen information security, with a budget of 200 billion yen. .
Comparing the 2025 sales target of 5 trillion yen and operating profit margin of 10%, 2020 sales of 4.2 trillion yen and operating profit margin of 5.5%, 2021 sales of 4.5 trillion yen in forecast profit The rate is 5.8%, and there is still a long way to go to the profit rate target.
The person in charge stated that "the company will effectively use M&A and other strategic investments of 500 billion yen to achieve its goals."