Mitsubishi Electric H1 FY2026 Earnings Presentation

Cover — FY ending March 2027 Q2 Earnings Briefing

सामग्री

Title slide reading '2027年3月期 第2四半期 決算説明会' (Earnings Briefing for the Second Quarter of the Fiscal Year Ending March 2027), Mitsubishi Electric Corporation, dated October 30, 2026.

लेआउट संरचना

Left-aligned title block with corporate logo top-left and a field of black rhombus shapes forming a gradient pattern on the right third

मुख्य दृश्य तत्व

• •Mitsubishi Electric three-diamond logo with 'Changes for the Better' tagline
• •Large black Japanese title
• •Geometric rhombus grid pattern

Table of Contents

सामग्री

Four sections with page references: 1. Key Points (p.3), 2. Results (p.5), 3. Earnings Forecast (p.16), 4. Supplementary Information (p.19).

लेआउट संरचना

Light grey background, title top-left, centered numbered list with right-aligned page numbers

मुख्य दृश्य तत्व

• •Numbered section list
• •Page-number column
• •Footer with logo and section label

Section 1 Divider — Key Points

सामग्री

Section divider introducing '今回のポイント' (Key Points of This Briefing).

लेआउट संरचना

Large section number '1' top-left, section title mid-left, rhombus wave pattern across the top-right

मुख्य दृश्य तत्व

• •Oversized section numeral
• •Black rhombus wave graphic

Key Points and Topics

सामग्री

H1 FY2026 revenue was ¥3,125.1 billion (+¥392.6 billion YoY) and adjusted operating profit ¥344.7 billion (+¥140.2 billion), both record highs for a first half, driven by strong demand in data centers, semiconductors, defense and air conditioning plus profitability and efficiency improvements. The full-year forecast is raised to revenue ¥6.55 trillion (+¥280 billion vs. prior outlook) and adjusted operating profit ¥710 billion (+¥90 billion), reflecting growth in FA systems, air conditioning & home appliances and infrastructure and better margins in Semiconductor & Device. Topics: portfolio transformation including deconsolidation of the automotive equipment business and the FA systems power distribution control equipment business, and making PCI Energy Solutions a wholly owned subsidiary; a share buyback of up to ¥200 billion, implying a 69% total payout ratio; interim dividend of ¥30 per share (+¥5 YoY) with a ¥30 year-end dividend planned. A footnote defines adjusted operating profit as operating profit excluding 'other income/loss' such as gains on business/asset sales and impairment losses.

लेआउट संरचना

Text-dense summary slide with two bold headline statements and bullets under 'Key Points', followed by a 'Topics' heading with two further headline-plus-bullet blocks

मुख्य दृश्य तत्व

• •Bold headline figures with YoY deltas in parentheses
• •Grey bullet points
• •Footnote defining adjusted operating profit

Section 2 Divider — Results

सामग्री

Section divider introducing '実績' (Results).

लेआउट संरचना

Section number '2' top-left with title mid-left and rhombus wave graphic top-right

मुख्य दृश्य तत्व

• •Oversized numeral
• •Rhombus wave graphic

Consolidated Results Overview — H1 FY2026

सामग्री

In ¥100 million (億円): revenue 31,251 vs. 27,325 (+3,926, 114%); adjusted operating profit 3,447 vs. 2,045 (+1,402, 169%); adjusted operating margin 11.0% vs. 7.5% (+3.5pt); profit before income taxes 4,035 vs. 2,539 (+1,495, 159%); net profit attributable to owners of the parent 2,970 vs. 1,893 (+1,076, 157%). Average FX rates: USD ¥160 (prior ¥146), EUR ¥185 (¥169), CNY ¥23.6 (¥20.3).

लेआउट संरचना

Five-row comparison table with prior-year, current-period (red header) and YoY columns; FX rates listed beneath

मुख्य दृश्य तत्व

• •Red current-period column header
• •Bold current figures
• •YoY delta and percentage columns
• •FX rate footnote rows

Consolidated Results Overview — Q2 FY2026

सामग्री

Three-month Q2 figures in ¥100 million: revenue 16,284 vs. 14,196 (+2,088, 115%); adjusted operating profit 2,026 vs. 1,107 (+919, 183%); adjusted operating margin 12.4% vs. 7.8% (+4.6pt); profit before income taxes 2,486 vs. 1,298 (+1,187, 192%); net profit attributable to owners of the parent 1,888 vs. 984 (+903, 192%).

लेआउट संरचना

Same five-row comparison table format as the H1 slide

मुख्य दृश्य तत्व

• •Red current-period header
• •YoY percentage column
• •Dotted row separators

Revenue and Adjusted Operating Profit Bridge — H1 FY2026

सामग्री

Revenue rose from 27,325 to 31,251 (¥100 million): +1,370 from FX and +2,556 from volume and other effects, led by FA systems, air conditioning & home appliances and defense & space systems. Adjusted operating profit rose from 2,045 to 3,447: +410 from FX and +992 from volume and other, comprising business volume growth about +860, price improvement about +380, the 'Next Stage' program effect about +220, offset by procurement costs (materials and components) about -470. A footnote links to the company's press release on the Next Stage support program special measures.

लेआउट संरचना

Two stacked horizontal waterfall charts (revenue on top, adjusted operating profit below) with callout annotations explaining the volume bucket

मुख्य दृश्य तत्व

• •Grey prior-period bar
• •Salmon incremental bars
• •Solid red current-period bar
• •Callout lists of drivers

Consolidated Balance Sheet and Cash Flow — H1 FY2026

सामग्री

Balance sheet (¥100 million, prior year-end vs. period-end): total assets 73,695 → 73,856 (+160); cash and equivalents 7,316 → 9,564 (+2,248); trade receivables and contract assets 17,544 → 16,712 (-832); inventories 12,621 → 12,982 (+361); total liabilities 27,395 → 25,532 (-1,863); bonds, borrowings and lease liabilities 3,632 → 3,388 (-244); D/E ratio 0.08 → 0.07; total equity 46,299 → 48,323 (+2,023); equity attributable to owners 44,842 → 46,959; equity ratio 60.8% → 63.6% (+2.8pt). Cash flow: operating CF 5,356 vs. 3,447 (+1,909); investing CF -1,722 vs. -467; free cash flow 3,633 vs. 2,979 (+654). Note: provisional accounting for Nozomi Networks, Inc. (acquired January 28, 2026) was finalized and FY2025 figures were retrospectively revised.

लेआउट संरचना

Two stacked tables — balance sheet on top, cash flow summary below — with red current-period headers and a two-line footnote

मुख्य दृश्य तत्व

• •Indented sub-line items
• •Triangle (△) notation for negatives
• •Red header column

Revenue and Adjusted Operating Profit Change by Segment — H1 FY2026

सामग्री

Revenue bridge from 27,325 to 31,251 (¥100 million): Infrastructure +959, Industry & Mobility +1,168, Life +1,431, Digital Innovation +101, Semiconductor & Device +195, Others +555, eliminations -487. Adjusted operating profit bridge from 2,045 to 3,447: Infrastructure +201, Industry & Mobility +698, Life +486, Digital Innovation -40, Semiconductor & Device +89, Others +52, eliminations -86.

लेआउट संरचना

Two stacked segment waterfall charts with nine columns each and labels beneath

मुख्य दृश्य तत्व

• •Segment-by-segment step bars
• •Grey bars for negative contributions
• •Red ending bar

Infrastructure Segment — H1 FY2026

सामग्री

Infrastructure revenue ¥678.3 billion, adjusted operating profit ¥60.5 billion, margin 8.9%. Public Utility Systems: H1 revenue 2,330 (prior 2,207), adjusted OP 142 (6.1%) vs. 181 (8.2%); orders rose on large overseas UPS projects and domestic transportation, but profit fell due to a one-time gain in the prior year. Energy Systems: revenue 2,368 (2,049), adjusted OP 261 (11.0%) vs. 142 (7.0%), on renewable energy and data-center demand and domestic power generation orders. Defense & Space Systems: revenue 2,084 (1,566), adjusted OP 202 (9.7%) vs. 79 (5.1%), driven by higher government budgets; space orders rose despite a large defense order in the prior year. Q2 three-month figures are also charted.

लेआउट संरचना

Three-row segment layout: business name at left, paired bar charts (3-month and cumulative revenue and profit with margin line) in the middle, commentary bullets on the right

मुख्य दृश्य तत्व

• •Grey vs. red paired bars
• •Margin line markers with percentages
• •Bullet commentary per business
• •UPS footnote

Industry & Mobility Segment — H1 FY2026

सामग्री

Industry & Mobility revenue ¥917.7 billion, adjusted operating profit ¥123.6 billion, margin 13.5%. FA Systems: H1 revenue 4,823 (prior 3,780), adjusted OP 822 (17.1%) vs. 332 (8.8%); Q2 revenue 2,481 with 18.0% margin, as AI- and semiconductor-related capex for semiconductors, electronic components and servers grew in Japan, China and Korea, plus the weak yen. Automotive Equipment: H1 revenue 4,354 (4,228), adjusted OP 413 (9.5%) vs. 205 (4.9%); car multimedia downsizing was offset by growth in Japan and North America, and profit rose on mix and cost reductions.

लेआउट संरचना

Two-row segment layout with bar charts and bullet commentary; lower half of slide left blank

मुख्य दृश्य तत्व

• •Cumulative and quarterly bars
• •Margin trend lines
• •Right-hand commentary bullets

Life Segment — H1 FY2026

सामग्री

Life revenue ¥1,298.9 billion, adjusted operating profit ¥141.4 billion, margin 10.9%. Building Systems: H1 revenue 3,590 (prior 3,264), adjusted OP 325 (9.1%) vs. 263 (8.1%), on domestic renewal demand, the weak yen and consolidation of a Middle East affiliate. Air Conditioning & Home Appliances: H1 revenue 9,398 (8,292), adjusted OP 1,089 (11.6%) vs. 664 (8.0%), supported by pre-regulation demand ahead of Japan's revised energy-efficiency standards, a hot European summer, price improvements and sales growth in Japan, Europe and Asia, despite higher material costs. Note: from FY2026 some businesses previously in 'Others' moved into Air Conditioning & Home Appliances, with FY2025 restated.

लेआउट संरचना

Two-row segment layout with bar charts, margin lines and bullet commentary; restatement footnote at bottom

मुख्य दृश्य तत्व

• •Paired grey/red bars
• •Margin labels in parentheses
• •Restatement footnote

Digital Innovation / Semiconductor & Device — H1 FY2026

सामग्री

Digital Innovation: H1 revenue 820 (prior 718), adjusted operating loss of 3 (-0.4%) vs. profit 36 (5.1%); revenue and orders rose on DX/AI IT investment and the acquisition of a US OT-security company, but amortization of acquired intangibles pushed profit down. Semiconductor & Device: H1 revenue 1,602 (1,406), adjusted OP 329 (20.6%) vs. 240 (17.1%); Q2 revenue 813 with 167 OP (20.6%), on optical devices for AI data-center communications and power semiconductors for rail, power and industrial uses, plus the weak yen.

लेआउट संरचना

Two-row segment layout with charts and commentary; no headline summary line

मुख्य दृश्य तत्व

• •Small negative-margin marker for Digital Innovation
• •High-margin red bars for semiconductors
• •Bullet commentary

Revenue by Customer Region — H1 FY2026

सामग्री

Regional revenue (¥100 million): Japan 14,182 vs. 12,852 (+1,329, 110%); overseas 17,069 vs. 14,472 (+2,596, 118%), of which North America 4,479 (105%), China 3,524 (+890, 134%), Asia excluding China 3,901 (120%), Europe 4,559 (119%), other 603 (120%). Mix: Japan 45%, overseas 55% (North America 14%, China 11%, Asia ex-China 13%, Europe 15%, other 2%). Mini bars show FA Systems' China share rising from 28% to 35% while Japan fell from 40% to 35%, and Air Conditioning's Europe share rising from 28% to 31%.

लेआउट संरचना

Donut chart and two stacked 100% bar strips on the left, regional comparison table on the right

मुख्य दृश्य तत्व

• •Nested red donut chart
• •100% stacked bars for FA Systems and AC & home appliances
• •Regional YoY table

Section 3 Divider — Earnings Forecast

सामग्री

Section divider introducing '業績見通し' (Earnings Forecast).

लेआउट संरचना

Section number '3' with title and rhombus wave pattern

मुख्य दृश्य तत्व

• •Oversized numeral
• •Rhombus wave graphic

Earnings Forecast — FY2026

सामग्री

Full-year forecast (¥100 million): revenue 65,500 vs. prior forecast 62,700 and FY2025 actual 58,947 (111% YoY, +2,800 vs. prior); adjusted operating profit 7,100 vs. 6,200 prior and 5,012 actual (142%, +900); margin 10.8% (+2.3pt YoY, +0.9pt vs. prior); profit before income taxes 6,950 (132%, +250); net profit attributable to owners 4,650, down 300 from the prior 4,950 forecast but 114% of FY2025's 4,077. FX assumptions for 2H: USD ¥155, EUR ¥175, CNY ¥22.0. Annual sensitivity per ¥1 move (¥0.1 for CNY): USD about ¥5 billion revenue, EUR about ¥4 billion, CNY about ¥2 billion; operating profit impact roughly 1/4 to 1/3 of the revenue effect. Prior forecast dated July 31, 2026.

लेआउट संरचना

Forecast table with prior-year, prior and current forecast, YoY and change-vs-prior columns; FX assumption and sensitivity table below

मुख्य दृश्य तत्व

• •Split red header for prior vs. current forecast
• •FX sensitivity grid
• •Footnotes on dates and sensitivity basis

Earnings Forecast Bridge — FY2026

सामग्री

Revenue bridge from 58,947 to 65,500 (¥100 million): +970 from FX and +5,583 from volume and other, led by defense & space systems, FA systems and air conditioning & home appliances. Adjusted operating profit bridge from 5,012 to 7,100: +300 FX and +1,788 volume and other — business volume about +1,540, price improvement about +920, Next Stage effect about +450, offset by procurement costs about -1,120.

लेआउट संरचना

Two stacked waterfall charts mirroring the H1 bridge slide

मुख्य दृश्य तत्व

• •Grey start bar
• •Salmon step bars
• •Red ending bar
• •Driver callouts

Section 4 Divider — Supplementary Information

सामग्री

Section divider introducing '補足情報' (Supplementary Information).

लेआउट संरचना

Section number '4' with title and rhombus wave pattern

मुख्य दृश्य तत्व

• •Oversized numeral
• •Rhombus wave graphic

Consolidated Statement of Income — H1 FY2026

सामग्री

H1 (¥100 million, % of revenue): revenue 31,251 (prior 27,325); cost of sales 20,513 (65.6% vs. 68.3%); SG&A 7,290 (23.4% vs. 24.2%); adjusted operating profit 3,447 (11.0%); other income/loss 133 vs. 198; operating profit 3,581 (11.5%) vs. 2,243 (8.2%); finance income/costs -33 vs. +108; equity-method income 488 vs. 187; profit before income taxes 4,035 (12.9%); income taxes 898; net profit 3,137 (10.0%); attributable to owners of the parent 2,970 (9.5%) vs. 1,893.

लेआउट संरचना

Full income statement table with amount and ratio columns for each period plus YoY

मुख्य दृश्य तत्व

• •Ratio-to-revenue columns
• •Bold subtotal rows
• •△ negative notation

Consolidated Statement of Income — Q2 FY2026

सामग्री

Q2 three months (¥100 million): revenue 16,284 vs. 14,196; cost of sales 10,535 (64.7% vs. 68.2%); SG&A 3,722 (22.9%); adjusted operating profit 2,026 (12.4%); other income/loss 181 vs. 16; operating profit 2,208 (13.6%) vs. 1,123; finance costs -64 vs. +83; equity-method income 343 vs. 91; profit before income taxes 2,486 (15.3%); income taxes 485; net profit 2,001; attributable to owners 1,888 (11.6%) vs. 984.

लेआउट संरचना

Same income statement table layout as page 20 for the quarter

मुख्य दृश्य तत्व

• •Ratio columns
• •Red current-period header
• •YoY column

Revenue and Adjusted Operating Profit by Segment — H1 FY2026

सामग्री

Detailed H1 segment table (¥100 million): Infrastructure 6,783 / 605 / 8.9% (prior 5,823 / 403 / 6.9%); Public Utility 2,330 / 142; Energy 2,368 / 261; Defense & Space 2,084 / 202; Industry & Mobility 9,177 / 1,236 / 13.5% (8,008 / 538); FA Systems 4,823 / 822 / 17.1%; Automotive 4,354 / 413 / 9.5%; Life 12,989 / 1,414 / 10.9% (11,557 / 927); Building Systems 3,590 / 325; AC & Home Appliances 9,398 / 1,089 / 11.6%; Digital Innovation 820 / -3; Semiconductor & Device 1,602 / 329 / 20.6%; Others 4,170 / 182; eliminations -4,291 / -317; total 31,251 / 3,447 / 11.0%.

लेआउट संरचना

Wide nine-column table with color-coded vertical bars marking each segment group

मुख्य दृश्य तत्व

• •Color-coded segment bars (green, purple, blue, yellow, pink)
• •Three grouped header bands
• •Two footnotes on Nozomi accounting and segment reclassification

Revenue and Adjusted Operating Profit by Segment — Q2 FY2026

सामग्री

Q2 segment table (¥100 million): Infrastructure 3,797 / 381 / 10.0% (prior 3,164 / 213); Industry & Mobility 4,668 / 664 / 14.2% (4,172 / 288); FA Systems 2,481 / 447 / 18.0%; Automotive 2,186 / 217 / 9.9%; Life 6,617 / 806 / 12.2%; AC & Home Appliances 4,693 / 617 / 13.2%; Digital Innovation 483 / 9 / 2.0%; Semiconductor & Device 813 / 167 / 20.6%; total 16,284 / 2,026 / 12.4% vs. 14,196 / 1,107 / 7.8%.

लेआउट संरचना

Same color-coded nine-column segment table for the quarter

मुख्य दृश्य तत्व

• •Color-coded segment bars
• •pt-change margin column
• •Reclassification footnote

Segment Forecast — FY2026

सामग्री

Full-year segment forecast (¥100 million, revenue / adjusted OP / margin): Infrastructure 17,200 / 1,960 / 11.4% (prior forecast 16,500 / 1,710); Defense & Space 5,700 / 640; Industry & Mobility 18,600 / 2,420 / 13.0% (+1,400 / +460 vs. prior); FA Systems 9,900 / 1,580 / 16.0% (+900 / +380); Automotive 8,700 / 840; Life 25,100 / 2,320 / 9.2%; AC & Home Appliances 17,500 / 1,550; Digital Innovation 1,800 / 0 / 0.0% (profit cut by 100 vs. prior); Semiconductor & Device 3,300 / 660 / 20.0% (+300 / +230); total 65,500 / 7,100 / 10.8%.

लेआउट संरचना

Very wide 15-column table comparing FY2025 actual, prior forecast, current forecast, YoY and change vs. prior forecast

मुख्य दृश्य तत्व

• •Five header bands
• •Red current-forecast band
• •Color-coded segment markers

Order Trends in Mass-Production Businesses — FY2026

सामग्री

FA Systems orders, YoY: +23%, +15%, +17%, +30% across FY2025 Q1–Q4, then +42% (Q1) and +54% (Q2) in FY2026; QoQ +11% and +6% in FY2026 Q1–Q2. Semiconductor & Device orders, YoY: -21%, +5%, +27%, +70% in FY2025, then +53% and +79% in FY2026; QoQ -17% and +54%. Note: automotive equipment and AC & home appliances are excluded because most products are not built to order.

लेआउट संरचना

Six-quarter grid table with YoY and QoQ rows for two businesses

मुख्य दृश्य तत्व

• •Grey prior-year and red current-year header bands
• •Large percentage figures
• •Exclusion footnote

Forward-Looking Statements Disclaimer

सामग्री

Cautionary statement that forecasts are based on assumptions judged reasonable at present and actual results may differ materially, followed by 17 risk factors including economic conditions and regulation, exchange rates, stock markets, funding environment, supply-demand and procurement, patents, litigation, product quality, climate-related regulation, human rights, technological change, business restructuring, information security, natural disasters, geopolitical risk, pandemics and matters relating to officers, major shareholders and affiliates.

लेआउट संरचना

Plain white slide with a paragraph and a numbered list of circled numerals

मुख्य दृश्य तत्व

• •Circled-number list
• •Plain black text

Closing Logo Slide

सामग्री

Closing slide with the centered Mitsubishi Electric logo and 'Changes for the Better' tagline.

लेआउट संरचना

Centered logo on white background

मुख्य दृश्य तत्व

• •Red three-diamond mark
• •Corporate wordmark and tagline