Mitsubishi Electric

Basic Information

Stock Code: 6503
Industry: Electric Machinery
Category Detail: Diversified Electrical Equipment
Prefecture: Tokyo
Establishment Year: January 1921
Listing Year: May 1949
Official Website: https://www.mitsubishielectric.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Hitachi, NEC, Fujitsu, Panasonic Holdings, Sharp, Sony Group, Mitsubishi Heavy, Kawasaki Heavy

Overview

Mitsubishi Electric is a major Japanese comprehensive electrical equipment manufacturer founded in 1921, engaging in a wide range from industrial equipment to home appliances and space development. It is the industry's No. 2 company.

Current Situation

For the fiscal year ending March 2024, Mitsubishi Electric achieved consolidated sales of 5.2579 trillion yen and net profit of 284.9 billion yen, maintaining a solid financial base. Its main businesses are FA equipment, air conditioning equipment, and semiconductors, holding top domestic market share in railway vehicle electrical components and industrial electrical equipment. Although quality inspection irregularities were revealed since 2021, the company has been strengthening its quality management system. It is focusing on space-related businesses and defense electronics, aiming for growth through diversified business development. In 2022, it integrated its building systems business with a subsidiary to improve efficiency. Organizational reforms include spinning off the automotive equipment business into a separate company in April 2024. It is actively investing in environmental measures and technological innovation toward a sustainable society, laying the foundation for its 2030 growth strategy.

Trivia

Interesting Facts

Independently established in 1921 from the Electrical Machinery Division of Mitsubishi Heavy Industries Kobe Shipyard.
Home air conditioner 'Kirigamine' certified by Guinness as the world's longest-lived brand.
Railway vehicle air conditioning it manufactures holds top domestic share.
World top-class market share in power modules.
'Jet Towel' is a representative high-speed hand dryer in the industry.
Achieved world's first GPS-equipped car navigation in 1990.
Railway air conditioning inspection irregularities lasting over 35 years were revealed.
Possesses technology involved in manufacturing numerous large telescopes.
Core comprehensive electrical manufacturer with strong influence in the Mitsubishi Group.
Adopts 'Changes for the Better' as TV CM catchphrase.

Hidden Connections

Deep business collaboration with Mitsubishi Group companies such as Mitsubishi Heavy Industries and Hitachi, Ltd.
Mitsubishi Electric electrical components are adopted in many of Japan's major railways.
Major supplier for missile guidance related to the Ministry of Defense.
'Diatone' is a derivative brand famous for audio equipment.
Past mobile phone business was specialized for NTT Docomo.
Mitsubishi Electric Store forms a sales network as an affiliated appliance retailer.
Established 'Toshiba Mitsubishi-Electric Industrial Systems' jointly with Toshiba.
Shareholders include Mitsubishi Corporation and Japan Master Trust Bank.

Future Outlook

Growth Drivers

Expansion of domestic and international demand for industrial FA and mechatronics.
Strengthening development of power generation equipment for renewable energy.
Technological innovation in automotive electrical components accompanying EV shift.
Expansion of space-related businesses and advancement in defense fields.
Smart factories and smart buildings using AI and IoT.
Penetration of high-efficiency air conditioning and refrigeration technologies in affluent markets.
Tailwinds from eco-product development due to stricter environmental regulations.
DX-driven internal systems and digital product development.
Infrastructure demand accompanying urbanization in emerging overseas markets.
Acceleration of adoption of industrial robots and 3D printers.
Market development for high-value-added semiconductor modules.
Strengthened development of sustainable and low-environmental-impact products.

Strategic Goals

Achieve 50% ratio of low-environmental-impact product sales.
Maintain and expand overseas sales ratio above 40%.
Efficiency in product development and new business creation through DX.
Global market share expansion in automotive EV-related parts.
Strengthen technology and market expansion in space and defense.
Enhance solutions for smart infrastructure and cities.
Secure talent through diversity and improved work environment.
Sustained strengthening of quality and compliance systems.
Maintain and improve competitiveness through new materials and semiconductor technologies.
Active promotion of regional community and social contribution activities.

Business Segments

Industrial Electrical Equipment

Overview

Develops and manufactures industrial equipment for factories and power plants, boasting top domestic share.

Competitiveness

Advanced technological capabilities and Mitsubishi Group's extensive network

Customers

Manufacturing Plants
Power Generation Companies
Plant Companies
Railway Operators
Public Facilities

Products

Transformers
Switchboards
Motors
Generators
FA Systems
Industrial Robots
CNC Equipment
Laser Processing Machines

Transportation Machinery and Vehicle Equipment

Overview

Supplies electrical components for railways and automobiles domestically and internationally, including parts for luxury vehicles.

Competitiveness

High technology and quality control in vehicle electrical components

Customers

Railway Companies
Automotive Manufacturers
Bus Companies

Products

Railway Vehicle Electrical Components
Air Conditioning Systems
Car Navigation
Power Steering
Starters
Alternators

Information and Communication Systems

Overview

Provides communication infrastructure, broadcasting equipment, and security products.

Competitiveness

Diverse communication technologies and extensive track record

Customers

Telecom Carriers
Broadcasting Stations
Public Institutions

Products

Base Station Antennas
Satellite Communication Equipment
Broadcast Transmitters
Surveillance and Security Cameras
Digital Train Radio

Semiconductors and Electronic Devices

Overview

Manufactures electronic components centered on world-leading power devices.

Competitiveness

Cutting-edge semiconductor technology and high reliability

Customers

Electrical Manufacturers
Industrial Equipment Manufacturers
Automotive Manufacturers

Products

Power Modules
Rectifier Diodes
Laser Diodes
Thyristors
Power Devices

Broadcasting Equipment

Overview

Develops video transmission equipment for broadcasting stations.

Competitiveness

High-image-quality and high-reliability transmission technology

Customers

TV Stations
Broadcasting Equipment Manufacturers

Products

Video Encoders/Decoders
Transmitters
SNG Equipment

Air Conditioning and Refrigeration Equipment Manufacturing

Overview

Holds No. 2 domestic share in commercial air conditioning and refrigeration equipment.

Competitiveness

High-efficiency refrigeration technology and comprehensive environmentally friendly products

Customers

Commercial Facilities
Factories
Housing Manufacturers

Products

Package Air Conditioners
Chiller Units
Refrigeration Machines
Heat Exchange Equipment

Home Appliance Products

Overview

Offers a variety of home electrical products with a focus on high quality.

Competitiveness

Technological innovation and reliability for long-term use

Customers

Appliance Retailers
Housing Market
Electrical Materials and Construction Industry

Products

Refrigerators
Rice Cookers
Vacuums
Microwaves

Lighting Equipment and LEDs

Overview

Supplies a variety of lighting products centered on LEDs.

Competitiveness

Energy-saving technology and wide product lineup

Customers

Construction Companies
Retailers
Industrial Facilities

Products

LED Lighting
Fluorescent Lamps
Lamps
High-Efficiency Lighting Fixtures

Lifestyle-Related Equipment

Overview

Develops various equipment to realize comfortable living environments.

Competitiveness

Integration of high-efficiency energy-saving products and proprietary technologies

Customers

General Consumers
Housing Equipment Companies

Products

Electric Water Heaters
IH Cookers
Futon Dryers
Dehumidifiers

Automotive Electrical Components

Overview

Supplies high-quality parts to domestic automotive manufacturers.

Competitiveness

Technological superiority through collaboration with Mitsubishi Group

Customers

Automotive Manufacturers
Truck and Bus Manufacturers

Products

Engine Electrical Components
Power Steering Units
Alternators
Starters

System Software and IT Services

Overview

Provides everything from system construction to operation.

Competitiveness

Broad industry knowledge and technological capabilities

Customers

Manufacturing Industry
Public Institutions
Telecom Operators

Products

System Integration
Software Development
IT Consulting

Building Equipment Solutions

Overview

Offers safe and comfortable building equipment services.

Competitiveness

Domestic top market share and technological development capabilities

Customers

Building Management Companies
Public Facilities
Commercial Facilities

Products

Elevators
Escalators
Building Automation

Competitive Advantage

Strengths

Domestic top-class market share across a wide range of business areas
Strong Mitsubishi Group brand power
High R&D capabilities and number of patents
Supply system linked with numerous affiliates
Global-scale production and sales network
Advanced quality management and safety compliance track record
Risk diversification through diverse product lineup
Advanced technology holdings in space and defense fields
Large-scale R&D organization and global R&D bases
Industry-academia-government collaboration for innovation promotion
Environmentally conscious technology development for sustainability

Competitive Advantages

Diversified business from industrial machinery to home appliances
Track record in large-scale public plants and infrastructure projects representing Japan
Global competitiveness in high-performance power semiconductors and laser devices
Domestic top share in railway and vehicle electrical equipment with reliable quality
Advanced technology in defense missiles and contributions to national security
Strong sales and production network for global markets
Early adoption and development of environmentally friendly and energy-saving technologies
Embedded software development capabilities for diverse industries
Development of advanced safety technologies for public transportation systems
Support for next-generation smart factories using AI and IoT
Advertising deployment with world's largest Aurora Vision
High customer trust backed by history and brand value

Threats

Intensifying price competition with emerging overseas manufacturers
Reputation risks from quality irregularities domestically and internationally
Fluctuations in semiconductor market supply-demand balance
Increased business costs due to stricter environmental regulations
Risks of technology leakage in semiconductors and advanced technologies
Impacts of COVID-19 and other international infectious diseases
Labor issues and talent acquisition challenges
Uncertainties in trade friction and trade policies
Impacts of natural disasters on factories and supply chains
Global rise in electricity and resource costs

Innovations

2024: Spin-off of Automotive Equipment Business

Overview: Established Mitsubishi Electric Mobility Co., Ltd. and spun off the automotive equipment business.
Impact: Improved organizational agility and business strengthening through specialization.

2023: Integration of 6 Software Development Subsidiaries

Overview: Integrated 6 companies for operational efficiency and enhanced product development capabilities.
Impact: Achieved faster software development and strengthened collaboration.

2023: High-Speed Optical Communication AI Technology Development

Overview: Developed high-speed optical communication system to address radio frequency shortages in space.
Impact: Significantly improves communication performance and contributes to new market development.

2022: Consolidation of Building Systems Business into Subsidiary

Overview: Transferred elevator and escalator business to Mitsubishi Electric Building Solutions.
Impact: Improved product development and service efficiency.

2021: Enhanced Quality Management for Railway Products

Overview: Major revision of quality management system in response to inspection irregularities.
Impact: Established foundation for regaining social trust.

2021: Elevator Development with AI Synthetic Voice

Overview: Equipped AXIEZ-LINKs (successor to Access) with multi-language guidance using AI synthetic voice.
Impact: Significantly improved usability in multiple languages.

2020: Overhaul of Power Device Inspection Processes

Overview: Introduced new inspection methods to correct deficiencies and reduce defect rates.
Impact: Enhanced product reliability and overseas market competitiveness.

2020: End of Production for Car Navigation and Car Audio Business

Overview: Withdrawing from car navigation business by end of 2023 in response to market changes.
Impact: Concentrated funds and reallocated resources.

Sustainability

Active development and deployment of energy-saving technologies in products
Quality improvements and compliance strengthening
Promotion of green procurement
Innovation in environmental technologies through industry-academia-government collaboration
Environmental conservation activities in collaboration with local communities