REG - Mitsubishi Corp. - Corporate Strategy 2027

MitsubishiAnnouncement

03/04/2025 12:00

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RNS Number : 5632D  Mitsubishi Corporation  03 April 2025

 

April 3, 2025

Mitsubishi Corporation

　　　　　　　　　　　　　　　　　　　　　　　　　　　

Corporate Strategy 2027

Leveraging our Integrated Strength for the Future

 

Mitsubishi Corporation (MC) is pleased to announce its new management
strategy, Corporate Strategy 2027. The theme of the new strategy is
"Leveraging our Integrated Strength for the Future".

 

Amidst unprecedented geopolitical and economic risks, we recognize that the
business environment has become increasingly uncertain on multiple fronts. We
have formulated Corporate Strategy 2027 to further strengthen the earnings
base of our existing businesses and create new projects, while flexibly
shifting our strategic direction based on the risks and opportunities arising
from external changes.

 

1. Corporate Strategy 2027

 

Vision

Optimize our business portfolio to achieve sustainable growth and increase our
corporate value by leveraging our integrated strength in response to a rapidly
changing business environment.

MC's "Integrated Strength" refers to our ability to dynamically shift business
strategies in anticipation of market changes by combining our extensive
operational experience, broad industry expertise and deep insights, powered by
our top-tier and diverse talent base, as a trusted partner.

Key Quantitative Targets

We have set two key quantitative targets to focus on growth and efficiency
respectively:

·    Underlying Operating Cash Flow: Average growth rate of 10% or
greater.

·    Return On Equity (ROE): 12% or more by FY2027.

 

Financial Soundness

We have set an upper limit of approximately 0.6 for our net debt-to-equity
ratio and will consider the use of leverage to facilitate certain investments,
while maintaining our financial soundness.

 

Shareholder Returns

We will maintain our basic policy of progressive dividends and flexible share
buybacks.

 

2. Value Creation Framework to Deliver Corporate Strategy 2027

To achieve sustainable high growth and efficiency, we will upgrade our
Value-Added Cyclical Growth Model using our integrated strength as the engine
for value creation.

 

Enhance

Accelerate growth and reinforce earnings base across all businesses via
expansion and additional investments.

 

Reshape

M&A, capital strategies and other initiatives leading to business
transformation ahead of market shifts.

 

Create

New investments and joint projects between business segments to create
potential synergistic effects.

3. Capital Allocation Strategy

Over the three years of this management strategy, we will allocate
approximately ¥1 trillion to sustaining capex and more than ¥3 trillion to
growth investments.

 

In a potential excess cash scenario, we will evaluate the allocation of those
funds to investments or additional shareholder returns in consideration of our
investment pipeline and other factors.

 

end

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