REG - Mitsubishi Corp. - Midterm Corporate Strategy 2024

DX (Group)Announcement

10/05/2022 12:45

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RNS Number : 9510K  Mitsubishi Corporation  10 May 2022

 

Midterm Corporate Strategy 2024

Creating MC Shared Value (MCSV)

 

MC has announced its new three-year management plan, entitled "Midterm
Corporate Strategy 2024 - Creating MC Shared Value."

 

In recent years, escalating geopolitical risk has created greater uncertainty
throughout our operating environment; a challenge that is being compounded by
the restructuring of global supply chains as well as the progress of
digitalization and decarbonization. These increasingly diverse and complex
societal and industry needs call for keen foresight.

 

Midterm Corporate Strategy 2024 will organically connect intelligence that
takes advantage of our far-reaching industry expertise and global network,
thereby strengthening the unique and collective capabilities of the MC
Group.

 

1. Our Goals Under Midterm Corporate Strategy 2024

MC will strive to continuously create significant shared value, MCSV, by
enhancing the MC Group's collective capability to address societal challenges.

 

2. Quantitative Targets and Shareholder Returns

Quantitative Targets

Under Midterm Corporate Strategy 2024, MC will aim for double-digit ROE and
steady earnings growth that is impervious to market fluctuations. This shall
be achieved by maintaining a sound profit base while investing in Energy
Transformation (EX), Digital Transformation (DX) and other growth areas.

 

Shareholder Returns

MC's basic policy on shareholder returns is to maintain a progressive dividend
scheme, whereby the company increases its dividend in response to its
sustainable earnings growth. Our policy is designed to balance financial
soundness, stable dividend growth and market expectations on shareholder
returns.

 

Cash Flow (CF) and Capital Allocation

MC will strategically allocate funds to investments and shareholder returns in
a manner that both maintains its financial discipline and enhances its
enterprise value. MC will also work to lower its cost of capital by enhancing
stakeholder confidence through dialogue and expanded disclosure.

 

Investment Plan and Business Portfolio

MC plans to invest three trillion yen over the course of Midterm Corporate
Strategy 2024 to accelerate investments in EX and steadily expand its earnings
base along with investments in both DX and growth fields.

 

3. Leveraging Connectivity to Maximize the MC Group's Collective Capabilities

Growth Strategies [Leading Transformations and Connecting them to Growth]

●EX Strategy: MC will work with its partners to help society decarbonize and
improve industry competitiveness while maintaining a holistic view of the EX
value chain.

●DX Strategy: MC will broadly deploy its DX capabilities across its diverse
business operations, thereby connecting industries, enterprises and
communities. In this manner, MC will help to raise productivity and create
sustainable value throughout society. To facilitate those efforts, we have
established a new internal organization called the "Industry DX Group," which
will focus on progressing DX strategies.

●Creating a New Future: MC will work with its partners, the local
municipalities and all members of society not only to help create a brighter
future for everyone, but also to boost Japan's self-sufficiency rates of
energy and food through active development of renewable energy and other local
energy sources. We will also focus on establishing new carbon neutral
industries and developing vibrant communities by helping to resolve regional
issues.

 

Business Management [Connecting Our Businesses to the Future with Disciplined
Growth]

Under Midterm Corporate Strategy 2024, MC will develop systems that encourage
its business groups to be both disciplined and proactive about strengthening
their management practices. Furthermore, by expediting work to refine a
value-added cyclical growth model that is capable of constantly adapting to
changes in our operating environment, we remain committed to maintaining and
improving our capital efficiency and ensuring our financial soundness.

 

Management Mechanisms [Connecting Diverse Sources of Intelligence]

In addition to the Industry DX Group, MC will newly establish the "Global
Intelligence (GI) Committee," which will focus on making MC even more
adaptable to its constantly evolving external operating environment. The GI
Committee's analyses shall be reflected in matters tabled by the "MC Shared
Value (MCSV) Forum" the function of which is to discuss and plan companywide
strategies that can be adopted across different industries. This work will
help to strengthen the business groups' development capabilities and
cross-industry connections.

 

HR Policy [Creating a Vibrant Organization by Interconnecting a Diverse and
Versatile Talent Pool]

MC's HR policy under Midterm Corporate Strategy 2024 shall focus on creating a
corporate culture that embraces diversity. Through the strategic allocation of
our human resources, we will strive to invigorate and unlock the full
potential of our organization.

 

Sustainability Policy [Interconnecting with Diverse Stakeholders and
Reinforcing Our Presence as a Trusted Member of Society]

MC's unique definition of "materiality" covers a set of crucial societal
issues to address through its business activities. In addition to classifying
our businesses based on climate transition risks and opportunities, we will
monitor their progress and work to decarbonize them through various measures.

 

http://www.rns-pdf.londonstockexchange.com/rns/9510K_1-2022-5-10.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9510K_1-2022-5-10.pdf)

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