Corporate Strategy

May 2012 Contents 1. Corporate Mission 9. Strengthening Management Foundation 2. Corporate Governance 10. Improve Financial Standing 3. Management Policy: Balanced Corporate Management 11. Strengthen Environmental Management/Environment- 4. Management Framework Oriented Businesses 5. Essential Growth Strategies 12. Forecast for FY2012 6. Direction of Growth Strategies 13. Management Targets 7. Strengthening the Global Strategy Notes: 8. Technological Development: FY2007: April 1, 2007 – March 31, 2008 Strong Businesses Stronger FY2008: April 1, 2008 – March 31, 2009 FY2009: April 1, 2009 – March 31, 2010 FY2010: April 1, 2010 – March 31, 2011 FY2011: April 1, 2011-March 31, 2012 FY2012: April 1, 2012 – March 31, 2013

11 1. Corporate Mission Encourage Fulfillment of Social Responsibility through Our Business Activities

QualityQuality TrustTrust TechnologyTechnology Seven Guiding Principles

Corporate Mission GrowthGrowth The Group will continually improve its technologies CitizenshipCitizenship and services by applying creativity to all aspects of its business. By doing so, we enhance the quality of life in our society.

EnvironmentEnvironment EthicsEthics

22 2. Corporate Governance Increased Flexibility and Transparency of the Management, Reinforced Supervisory Function over the Management

General Shareholders’ Meeting Actual practices at Mitsubishi Electric Reporting to Reporting to Appointment • Thorough separation of execution and supervision Execution Supervision Appointment / • Majority of board of directors NOT assuming Executive Officers Dismissal / Supervision Board of Directors responsibility as executive officer Business Execution Authorization Transfer Chairperson • Minimal number of executive officers (21 members) President & CEO responsible for day-to-day operation of each business Nomination division and corporate administrative sections Committee Executive Officers Reporting to Auditing • Multi-phase risk management by executive officers Committee meeting Compensation Directors Each Business and Committee • Implement global internal control system to ensure Management Division *More than 50% of members compliance with the Corporation Law and J-SOX Act composing each of the three (Financial Instruments and Exchange Law) committees shall be outside directors. • Maintaining systems to respond to companywide risks

Appropriate response to revisions of legislation Appropriate disclosure to shareholders and other external factors and other stakeholders

Increase Corporate Value

3 3. Management Policy: Balanced Corporate Management Soundness, Profitability/Efficiency, Growth

Growth Growth strategies Victory (VI) & Advance (AD) Agility to changes in the business environment

Profitability/Efficiency Soundness Persistently strengthening the business Financial standing foundation: ・“Manufacturing Craftsmanship” Ethics and compliance ・Sales and services CSR ・Human resources

Robust management foundation and sustainable growth

Increase Corporate Value 4 4. Management Framework GrowthGrowth ProfitabilityProfitability SoundnessSoundness Two Frameworks for Implementing Balanced Corporate ManagementEfficiencyEfficiency

“Manufacturing Craftsmanship” Two Front-lines (Quality, costs, manufacturing technologies, R&D, IP) Sales and services

Business Customers Four Synergistic Overseas bases Mitsubishi Corporate division A Electric Networks Sales Production Group Integration synergies between Domestic bases Production and Sales

Corporate Business divisions Productionsupport Sales

Business divisions and Corporate Sales Production

Global Business Business division B division C

5 GrowthGrowth

ProfitabilityProfitability SoundnessSoundness 5. Essential Growth Strategies EfficiencyEfficiency

DisplayDisplay && ImagingImaging InformationInformation OpticalOptical && ElectricalElectrical CommunicationsCommunications EnergyEnergy TechnologyTechnology MediaMedia TechnologyTechnology TechnologyTechnology TechnologyTechnology WaveWave TechnologyTechnology TechnologyTechnology PowerPower ElectronicsElectronics ElectricElectric TechnologyTechnology MechanicalMechanical TechnologyTechnology DeviceDevice TechnologyTechnology MaterialsMaterials TechnologyTechnology SensorSensor TechnologyTechnology TechnologyTechnology

platforms QualityQuality Engineering,Engineering, EMCEMC Technology,Technology, SimuSimulationlation Technology,Technology, SystemizationSystemization Technology,Technology, DesignDesign Technology,Technology, IntellectualIntellectual PropertyProperty Rights,Rights, StandardizationStandardization Technology

Product competitiveness Ex. DeviceDevice TechnologyTechnology Air conditioners with through technological SiC inverters Motor systems with synergy PowerPower ElectronicsElectronics Next-generation SiC inverter built-in SiC inverters TechnologyTechnology for railcars

Information & Communication EnergyEnergy && ElectricElectric SystemsSystems IndustrialIndustrial AutomationAutomation SystemsSystems Information & Communication ElectronicElectronic DevicesDevices HomeHome AppliancesAppliances SystemsSystems Power Systems (Power generation, Transmission Factory Automation Systems Satellites/Satellite Communication  Power Devices (IGBT/IPM) Air Conditioners/Heaters/ & Distribution) (PLCs/Display equipment, servomotors Systems  High-Frequency and Coolers/Compressors Transportation Systems /Inverters, NC equipment) Radar/Antennas Optical Devices Housing products Water Environment System Processing machines Electronic Systems (ventilation, etc.)  Automotive/Industrial-use Photovoltaic systems Disaster Prevention Systems (EDM/ lasers) Wireless Communications Systems LCD Panels Large Display Devices Alternators/Starters Optical Broadband Access Systems Household Equipment Building Systems ECU Information System Equipment Digital Media Equipment (Elevators and Escalators, Security, Electric Power Steering SI (LCD TVs, DLPs, BDs) Building Management Systems) Car Multimedia

Particle Beam EV/HEV automotive Small Quantum LCD system Air-to-Water

VI GrowthStrategy High-speed Cell production Cryptography SiC Treatment Systems elevators electrical equipment satellites solution robots Recycling PON MEMS Femtocell wireless Laser TVs base-station 40G LD/PD

Solution businesses through product synergy

SmartSmart GridGrid Total Security EnergyEnergy

AD Total Security Solutions ConservationConservation SmartSmart CommunityCommunity ImagingImaging SolutionsSolutions Solutions SolutionsSolutions Growth Strategy EMC: Electro-Magnetic Compatibility, NC: Numeric Controller, ECU: Engine Control Unit, DLP: Digital Light Processing, BD: Blu-ray Disc, MSC: Micro Spark Coating, EV/HEV: Electric Vehicle/Hybrid Electric Vehicle, NGN: Next Generation Network, SiC: Silicon Carbide, 6 MEMS: Micro Electro Mechanical Systems, LD/PD: Laser Diode/Photo Diode, 5. Essential Growth Strategies GrowthGrowth

ProfitabilityProfitability SoundnessSoundness Victory (VI) and Advance (AD) Growth Strategies EfficiencyEfficiency

VIVI GrowthGrowth StrategyStrategy Transportation Systems “Make strong businesses stronger” Productivity and Factory Optical Broadband Productivity and Satellites Automation Access Systems QualityQuality Products R&DR&D andand Network Security IPIP Elevators and Escalators Systems Power Devices ProcurementProcurement

Marketing and Automotive Air Conditioning Marketing and Equipment Equipment and Housing Products ServicesServices Power Systems and Housing Products FinancialsFinancials ADAD GrowthGrowth StrategyStrategy “Reinforce solutions business centered on HumanHuman ResourcesResources strong businesses through internal/external cooperation” Total Security Smart Grid Imaging Solutions Solutions

Energy Conservation Smart Solutions Community 7 6. Direction of Growth Strategies GrowthGrowth

ProfitabilityProfitability SoundnessSoundness Aiming to become a global, leading green company EfficiencyEfficiency that contributes to the creation of a prosperous society

Environment and Energy Social Infrastructure Systems Eco-friendly power systems High degree of reliability supporting social safety and security R&D for effective utilization of natural System development utilizing varied resources technological platforms Power electronics technology High degree of linkage between image/ information communication and machinery controls Global Development Make strong businesses stronger globally Product development meeting regional needs Promote cross-business regional strategies

Pursue ever Higher Growth 8 7. Strengthening the Global Strategy GrowthGrowth ProfitabilityProfitability SoundnessSoundness Make strong businesses stronger globally EfficiencyEfficiency Power Systems Transportation Systems Building Systems Factory Automation Systems Increasing global demand and Expanding demand in emerging Cyclical business model: Strengthen sales/service structure “eco-friendly” needs countries and broaden business new installation  maintenance and reallocate resources to become domains in the Japanese market  modernization No. 1 globally Increase turbine generator Penetrating into newly emerging New installation businesses in Solutions based on collaboration production capacity countries China and emerging markets Continuous investments in China New transformer plant in U.S. Partnerships and collaboration with Surging demand for modernization rail car manufacturers 400 500 600 Overseas 200

Net sales Net sales Japan (Billions of Yen)(Billions (Billions of Yen)(Billions (Billions of Yen)(Billions 0 of Yen)(Billions 0 0 0 08 09 10 11 … 15 (FY) 08 09 10 11 … 15(FY) 08 09 10 11 … 15(FY) 08 09 10 11 … 15(FY) Automotive Equipment Power Devices Air Conditioning Systems Overseas Net Sales / Ratio Localization to serve automakers Business expansion in Europe, Strategic resource investment (JPY/USD) (Billions of Yen) (JPY/EUR) worldwide China and U.S., and next- and global development and 1,500 200 generation product development production 34% 34% Penetrating into emerging EV/HEV-related businesses Regional needs (energy 32% 33% markets Differentiation through low power conservation, design) 150 147 IT/eco-friendly technologies loss/high reliability Penetrating into emerging 1,000 JPY/EUR markets 130 113 110 100 102 200 92 86 500 500 JPY/USD 79 500 50

0 0 0 0 (Billions of Yen)(Billions (Billions of Yen)(Billions (Billions of Yen)(Billions 0 (FY) (FY) (FY) 08 09 10 11 (FY) 08 09 10 11 … 15 08 09 10 11 … 15 08 09 10 11 … 15 Create synergy by strengthening cross-business cooperation in each region (including Japan, Europe, the United States, China and Southeast Asia) Strengthen business support to promote regional strategies 9 7. Strengthening the Global Strategy GrowthGrowth ProfitabilityProfitability SoundnessSoundness Make strong businesses stronger globally EfficiencyEfficiency

Recently established entities EstablishedEstablished a a production production and and sales sales joint joint venture for automotive equipments EstablishedEstablished a a production production and and sales sales venture for automotive equipments company for automotive equipments EstablishedEstablished an an assembling assembling and and (Changchun,(Changchun, China) China) company for automotive equipments testing joint venture for power (Changshu,(Changshu, China) China) testing joint venture for power CommencedCommenced January January 2012 2012 devicesdevices CommencedCommenced in in May May 2012 2012 (Hefei, China) •• Car Car multi-media multi-media products products (Hefei, China) • Partnership with QiMing Information •• Equipment Equipment for for electric electric power power steering steering Production began in January 2012 • Partnership with QiMing Information • Car multi-media products Production began in January 2012 TechnologyTechnology Co., Co., Ltd. Ltd. • Car multi-media products

EstablishedEstablished a a power power transformer transformer factoryfactory (Memphis,(Memphis, Tennessee, Tennessee, U.S.A.) U.S.A.) ScheduledScheduled start: start: April April 2013 2013 •• Increased Increased demand demand in in North North AcquisitionAcquisition of of MESSUNG MESSUNG Group Group AmericaAmerica for for transmission transmission and and (Pune and others, India) distribution equipment (Pune and others, India) EstablishedEstablished a a production production and and distribution equipment Merged with Mitsubishi Electric India sales company for FA systems •• Strengthening Strengthening global global production production Merged with Mitsubishi Electric India sales company for FA systems of transformers inin May May 2012 2012 (Changshu,(Changshu, China) China) of transformers •• Expanding Expanding product product lines lines ScheduledScheduled start: start: December December 2012 2012 (PLCs,(PLCs, human human machine machine interfaces) interfaces) •Servomotors • Bolstering operations in sales, •Servomotors • Bolstering operations in sales, •Numerical•Numerical controls controls (NCs) (NCs) manufacturing,manufacturing, and and development development Main bases for Business operation EstablishedEstablished a a general general sales sales company company in in Vietnam Vietnam EstablishedEstablished a a developing developing and and Energy and Electric Systems (Ho(Ho Chi Chi Min Min City) City) manufacturingmanufacturing joint joint venture venture for for low-voltage switchgears Industrial Automation Systems CommencedCommenced in in July July 2011 2011 low-voltage switchgears (Xiamen,(Xiamen, China) China) Electronic devices ProductProduct lines: lines: Scheduled start: October 2012 Home appliances ・・AirAir conditioning conditioning systems systems Scheduled start: October 2012 ・・HomeHome appliances appliances •Circuit•Circuit breakers breakers General sales company ・・FA systems (From fiscal 2012 onward) • Magnet switches FA systems (From fiscal 2012 onward) • Magnet switches R&D bases •• Partnership Partnership with with Shihlin Shihlin Electric Electric && Engineering Engineering Corp. Corp.

1010 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (1) Power Systems Business EfficiencyEfficiency

Provide high-efficiency, low-environmental load total systems, from power generations and transmission & distribution

Power Generation Business 【United States】 Global Business Promotion Structure and Regional Strategies Strengthen highly efficient thermal • Green New Deal power generation businesses policies in force • New power •Boost global production structure Turbine Generators transformer factory •Accelerate development of (Memphis, new models Tennessee) Expand the nuclear power generation businesses based 【Japan】 on energy measures undertaken by • Exuberant and steady individual countries demand for renewal • Upgrade production Transmission & Distribution Business capacity (generators, transformers) Address new and renewal demand • Smart grid experiment across all regions •Strengthen competitive edge and market entry through : Production and 【China】 collaboration between domestic and overseas bases engineering bases •Address new demand that targets a low-carbon society : Priority markets • Expanding demand for power grid Power Transmission • Utilize local production Switchgear Transformers Supervisory Control bases Systems New Turbine Upgraded production capacity to 60 units per year in Kobe (formerly 45 【 Generators Factory India and the Middle units), for high-efficiency generation East】 plants, including combined cycle Electric Power-Related generation • Electricity demand Business • Utilize local bases (Particle Beam Treatment Systems) Expanded global supply capacity to (Dubai, Abu Dhabi, 80 units per year, leveraging • Orders received from 8 of 14 Kuwait) domestic locations external procurement, including overseas contract production of (as of May 2012) 【 】 • Global rollout of domestically Mitsubishi Electric design Europe cultivated technology equipment • Utilize local bases

11 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (2) Transportation Systems Business EfficiencyEfficiency

The only manufacturer capable of providing driving, braking and controlling as a single company

Propulsion and Driving 【Europe】 Global Business Promotion Structure and Regional Strategies • Cooperation with rail car manufacturers • Expand air conditioning systems 【Asia】 • Strong demand for railway • Adapts to needs for energy conservation and high functionality infrastructure (such as in • High shares of domestic and overseas India) markets • Using Mitsubishi Electric-manufactured power [China] devices (SiC system now under development) • Utilize local production bases Braking and Safety Air Conditioning • Maintenance business [Japan] • Next-generation rolling • A wide range of • Energy saving stock systems applications, from high- through inverter speed rail to new control : Production and maintenance • Ground control systems transportation systems • Strengthening of operating bases and equipment • Safety enhanced with production : Priority markets high reliability structure • Environment-related business On-Board Ground Information Control Systems SiC inverter for rail cars Advantages as 【North America] • Secure orders in urban an integral railcar system transportation Saves energy (30% reduction) • Maintenance business • Integrated information • Total support for rail control aids in transport, including Compact/lightweight [Central and South operation drive control and (40% size/mass reduction) America] • Multimedia power management information provision • Abundant Less maintenance • Regional marketing in to enhance customer experience in wide cooperation with rail car service range of distribution Lower noise (up to 6dB reduction) devices manufacturers 12 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (3) Building Systems Business EfficiencyEfficiency High degree of safety and reliability shown by abundant experience Energy-saving solutions through advanced drive and control technology Bolster the building systems Global Business Promotion Structure and Regional Strategies 【Japan】 business ・New installation: standard elevators Cyclical business model: new ・Modernization: safety & security features installations  maintenance  ・Building management system: wider modernization systems and services realizing energy New Installation Repairs and conservation Maintenance Maintenance Sales Service Modernization Expand sales of interrelated products 【 China】 with a view to an entire building ・Capture the top share of the new installation market Elevator and escalator business ・The world-fastest elevators Expand the business based on (Shanghai Tower, scheduled in 2014) “Safety/Security” and “Reliability” ・Maintenance: high-quality services Expand the new installation business : Production bases • Global development, sales and : Priority markets 【Asia】 production, and installation systems ・New installation and maintenance: • New products that anticipate *Number of countries already penetrated by the Company: 90 increased sales of new models changes in environmental, energy ・Marketing prowess for modernization saving and other markets ・Cross-cooperation between elevator/escalator, and building Promote the maintenance and Strengthening global production systems management systems modernization business Launch the new standard Strengthen medium- to high- • safety/security, and reliability overseas elevator model, speed elevator production 【Middle East and India】 • Modernization menu related to: NEXIEZ-MRL capacity for the Chinese market • Penetrating into new markets: stronger environment, energy conservation, collaborations with local partners delivery, and costs 【Europe】 Building management systems business • Optimal products for European market Expand sales of products based on Facima&DIGUARD (environment 【The Americas】 friendly and secure) • Total solutions by linking such • Enhanced product lineups: penetrating systems as air conditioning, lighting, Mitsubishi Electric Shanghai Electric into markets in Mexico, Central and security Mitsubishi Elevator Asia Co., Ltd. (Thailand) Elevator Co., Ltd. (China) South America 13 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (4) Factory Automation (FA) Systems Business EfficiencyEfficiency

Integrated solutions from productivity to energy management and global technological support capabilities

【 】 Bolster Solutions Global Business Promotion Structure and Regional Strategies Japan • Overwhelming top share Field equipment compatibility and • Global strategic strengthen system construction management based on partnership strategies Upper information layers collaboration 【China】 Partners: NEC, SAP, Oracle • FA integration solutions: Software  collaboration the global priority market Partners: NIPPON DENNO, Wind River, ICONICS, Adroit Field equipment  M&A/compatibility 【 and South • CC-Link partners Korea】 • Capital alliances with key partners • Smartphone-related • Technological advantage through capital expenditure disclosure of technical specifications : Global FA centers 【India】 Upgrade Production System :Satellite FA centers • Acquisition of /Marketing bases MESSUNG Group Supply capacity and quick delivery : Priority markets • Collaboration with by undertaking production close to Japanese clients and markets local partners China: Dedicated production base India: Low-voltage switchgear production 【ASEAN】 capability • Global strongholds for ASEAN: Smart meter production PA Business: Solutions, 【 】 Strengthen the China Business Key product market share intraregional projects 【Establish dedicated production base】 PLCs Bolster overseas sales capacity • Mechatronics and FA control: Global 20% 【Central and Eastern Mitsubishi Electric Dalian Industrial Products Co., Ltd. China 25% Europe, Russia】 New business fields: • Motor drive controllers: • Support to Japanese Process automation (PA), building Mitsubishi Electric Automation Manufacturing (Changshu) Co., Ltd. Laser processing clients automation (BA) and energy • Low-voltage switchgear: machines Mitsubishi Electric Low Voltage Equipment (Xiamen) Co., Ltd. 【Brazil】 conservation 【 】 (Printed circuit Bolster solutions business AC servomotors board processing) Bolster Singapore base • Establish an FA total solutions center Global 19% • Support to Japanese Global 60% clients as foothold for Strengthen the PA business by investing • Energy-saving SI: Mitsubishi Electric & Electronics China 24% China 75% to system integrators (Shanghai) Co., Ltd further exploitation * Market shares are based on the company’s estimation 14 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (5) Automotive Equipment Business EfficiencyEfficiency Meet the need for high-efficiency equipment and power electronics technology, and image and information processing technology

Bolster R&D in Environment/Energy Saving and Global Business Promotion Structure and Regional Strategies Information Communication Japan, United States and Europe: Alternators/Starters IPU (Integrated Power-drive Unit) • Launch energy-efficient products based on advanced technologies in line with the • Develop and launch products that meet • Boost product competitiveness in demand for such fuel-efficient features the expanding EV/HEV market spread of electric-powered vehicles and the increasing popularity of fuel-efficient as ISS, energy regeneration, high through synergy of semiconductor cars that realize automotive safety and comfort efficiency and low weight in a timely and automotive equipment manner technologies Alternators Starters Environment/ Energy Saving

IPU Market share 16% Market share 16% : Production bases : Priority markets

China and India : • Promote global R&D and production strategy aimed at enhancing competitiveness in emerging markets that Electric Power favor reasonably priced cars Steering EPS Market share 19% Information Communication Upgrade manufacturing bases in response to EPS market expansion • Create competitive Car navigation systems products meeting 1987 2000 2010 demand for fuel-efficient features ・United States ・Czech Republic ・China (two companies) ETC ・The Philippines (two companies) Mitsubishi Electric Automotive ・Indonesia ・Brazil (China) Co., Ltd. Car Multimedia ・ ・ (EPS, car multimedia) • Reinforce in-vehicle and inter-vehicle Thailand China communication functions in line with the evolution ・India Changchun Qiming Lingdian of car navigation systems into on-board ・The Netherlands Automotive Electronics Co., Ltd. information navigators (Car multimedia)

* ISS: Idle Stop and Start, HEV: Hybrid Electric Vehicle, EV: Electric Vehicle, EPS: Electric Power Steering System, ETC: Electric Toll Collection System ** Market shares are based on the company’s estimation 15 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (6) Power Devices Business EfficiencyEfficiency Offer abundant product lineups utilizing high-performance, high-reliability components and power electronics technology

Contribute to realizing energy Global Business Promotion Structure and Regional Strategies FA conservation worldwide by Equipment corresponding to various needs 【Power Devices】 Key devices effectively controlling power for achieving a IGBT/IPM for industrial equipment, IPM low-carbon society • Growing capital expenditure for manufacturing, particularly in Asia • Regarding low-capacity devices, expand product lineups through Vincotech Holdings Automotive S.à r.L. (particularly in the European market) Equipment

:Production and sales bases Photovoltaic (PV) :Priority markets Inverters

IPM for EV・HEV inverter • Significant trends of growing demands in European and Asian markets, Established an assembling and testing joint venture subsequent to Japan/Unites States For renewable energy equipment Air •Increase in demand for renewable energy equipment especially in Europe and North Conditioners Mitsubishi Electric GEM In January 2012, a China- America Power Device (Hefei) Co., Ltd. based joint venture •Make better use of Vincotech Holdings S.a.r.l. commenced production of for European PV systems consumer and industrial power Rolling Stock DIPIPM for inverter-type home modules electronics Expected to double its 2011, • Global top share • Growing demand mainly in Asia, China-based assembly and test HV-IGBT inverter-type air conditioners, operation capacity by 2015 • Meeting expanding demand refrigerators and other household as railway networks around appliances the world advance

* IPM: Intelligent Power Module, DIP: Dual In-line Package, HV: High Voltage, IGBT: Insulated Gate Bipolar Transistor 16 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (7) Air Conditioning Systems Business EfficiencyEfficiency Consistently pursuing energy conservation through high-efficiency compressors and advanced inverter control/sensing technology Strengthen Air Conditioning 【Japan】 Systems Business Global Business Promotion Structure and Regional Strategies • Requirements for energy conservation, Strengthen global development/production systems and replacement • Strengthen the development of • Further energy saving environmental and energy saving • New fields: heat dissipation or cooling differentiation of equipment/facility • Accelerate development of regionally responsive models 【Europe】 • Bolster overseas sales capabilities • Focus on environment and energy Room air conditioners conservation • Heat pumps and heater demand • PAC for heaters et al.; marketing of Multiunit air new clients Conditioner Store and office use air conditioners • Penetrating into emerging markets: systems for buildings Eastern Europe, Russia, Turkey

Strengthen Air-to-Water Businesses 【China】 : Production bases • Competitiveness of CITY MULTI, Business expansion through : Priority Markets collaboration with local partners POWER MULTI, etc. in Europe • Floor-mounted inverter unit, RAC and • Augment sales and service systems Expand regional strategies for product development floor-installed inverter unit • Accelerate initiatives to meet needs • Operational investments through local production and Europe China United States Southeast Asia strengthen engineering support Design Design Installability Cooling- 【Asia, Middle East】 Cold resistance/ High-added (Compatible with specific models value duct-type models, (Inverters) • Cost reduction: local (Thailand) Compressors heating etc.) performance production Strengthen development of • India & emerging markets: further models that conform to the Japan European design Ceiling- sales channels energy conservation systems of model Energy saving installation performance various regions Kirigamine “Zen” model 【United States】 • Improve performance of air conditioners and help expand sales by • Applications responsive to U.S. Floor Upright-installation markets: multiple-use, energy-saving bolstering high-efficiency development model model (for hotels) and production capabilities model feature, ductless * RAC: Room Air Conditioner, PAC: Package Air Conditioner 17 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (8) Space Systems Business EfficiencyEfficiency

Expand space utilization infrastructure globally, from satellite systems to ground installations

Türksat 4A/4BSatellite systems Himawari-8 Expand entry into the global commercial satellite market via and 9 the strategic model DS2000 standard satellite bus • Increase sales in global markets, mainly targeting commercial communications/broadcast[Commercial communications satellites Himawari-8 and 9 satellite scheduled to be • Maintainlaunched zero defect in 2013 in or orbit 2014] • Provide uniform, in-house manufacturing encompassing design, assembly and testingST-2 ST-2 Superbird-C2 Satellite components Himawari-7 Superior reliability recognized by Türksat-4A/4B Superbird-C2 [Commercial communications satelliteEuropean successfully launched and American[Commercial communicationssatellite in May 2011]manufacturersSatellite] • Satellite bus equipment (Global share(%)) [meteorological tracking [Commercial communications [Commercial satellite] [Commercial satellite] communications No.7 launched in 2006 communications satellite] satellite] Nos.8 and 9 planned for Solar Array Lithium-ion Solar Array Scheduled to be launched in launch in 2014 and 2016, Launched in August 2008 Panels (40%) Batteries Substrates 2013 or 2014 Launched in May 2011 respectively (35%) (30%) • Communication Equipment Power Low-noise Receivers amplifiers Ground installations amplifiers Wide variety of product lines that support Transmitters satellite operations • Related systems Helisat Used in NASA spacecraft

Satellite communications Satellite communications Subaru Telescope ©NAOJ ALMA Telescope earth stations • Participated in over 450 different satellite maritime antenna systems worldwide maritime antenna

* Market shares are based on the company’s estimation 18 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (9) China Strategy EfficiencyEfficiency Harness collective strengths (Billions of yen) Net sales in China between operating bases and between businesses Other 300 Home Changchun Appliance : Common areas •Automotive equipments Electric : Energy and electric systems 200 Device Baoding : Industrial automation systems Industrial • Power transformers : Information and communication systems Automation • Cooling equipment for Beijing: Headquarters 100 : Electronic devices transformer Energy and : Home appliances • High voltage switchgear Dalian Electric ・Factory automation/ 0 : 26 operating bases automotive electric and 07 08 09 10 11 (FY) *Includes 2 operating bases under Xi’an electronic products Note: Includes Taiwan (excludes equity-method companies) construction • Medium voltage switchgear Weihai (As of May 2012) • High voltage switchgear Strengthen Business Operations in China Hong Kong: 7 operating bases components • Electronic components Upgrade, strengthen, restructure business promotion Shanghai systems • Elevators and escalators Bolster sales infrastructure systems Changzhou Changshu • Air conditioners • Automotive • Automotive Augment risk Management system • Energy Saving Systems/ FA Systems equipments equipments Reinforce partnerships with leading local corporate • Sales and service • Factory automation groups (Energy and electric systems, Hefei equipment semiconductors, visual equipment, factory • Power devices automation equipment, automotive electric Recent investments in China and automotive products, etc.) Establishment of new companies (FY2011) • Power device assembling and testing (Hefei) • Energy saving, FA system development/design Zhuzhou (Shanghai) • Electric equipment for • Automotive equipment manufacturing Hong Kong rolling stock (Changshu) • Group control • FA equipment manufacturing (Changshu) • Sales and service Xiamen • Low voltage switchgear manufacturing (Xiamen) (Energy and electric Guangzhou • Low-voltage Bolster production structures systems, elevators and ・ Elevators and escalators switchgear • Air conditioner compressors (Guangzhou) escalators, air ・ Air conditioner compressors • FA / Mechatronics equipment (Dalian) conditioners, visual equipment, factory • Elevators and escalators (Shanghai) etc. automation equipment, Strengthen sales/service operational structures (FY2011) semiconductors, etc.) • Mitsubishi Electric Automation Solution Center (Shanghai)

19 7. Strengthening the Global Strategy GrowthGrowth

ProfitabilityProfitability SoundnessSoundness (10) India Strategy EfficiencyEfficiency

(Billions Strong market development based on strong businesses of Yen) Sales in India Strengthen India Strategy Strengthen links with India-based Mitsubishi Electric Automotive India Mitsubishi Electric India 50 Industrial Japanese companies Manesar, Haryana Automation Headquarters: Gurgaon, Energy and Home Expand business through local Electric Appliances Automotive electrical equipment Haryana capital and deeper partnerships production and sales Sales and service businesses ・ Air conditioners systems Bolster sales and service systems 0 based on regional characteristics ・ Factory automation systems 07 08 09 10 11 … 15 (Main office: Pune, Maharashtra) (FY) MESSUNG Group ・FA system sales/service Recent initiatives in the Indian market ・ Development and Power Systems Elevators and Escalators Business manufacture Thermal power generation businesses Aggressively expand businesses that (PLC, human machine target premium zones interface, inverter) centered on L&T-MHI Turbine Generators Optimal model responsive to market ★Former MESSUNG Group needs locations in India (Total: 10) ・Visual information equipment Transportation Systems Business Factory Automation Systems ・Power devices Indian Railways’ track expansion plans Demands from manufacturing sector Business support Metropolitan transportation system ・ Marketing proposals Public investments for the infrastructure (production equipment, ・ Social infrastructure-related Negotiations related to electric etc.) locomotives for freight trains business, others New Business Fields: • Social infrastructure Air-Conditioning Systems • Energy conservation businesses Expand the scope of targeted consumers by introducing midrange Automotive Equipment Business models (affluent to middle class) Product meeting market needs Utilize production bases in Thailand L&T-MHI Turbine Generators Power Device Business (10% Mitsubishi Electric investment) : Common areas Visual Information Equipment Uninterruptible power supply Hazira, Gujarat : Energy and electric systems Business-use visual equipment equipment; for use in rolling stock and Generator production and sales : Industrial automation systems (projectors, data walls, public displays) renewable energy

20 8. Technological Development: GrowthGrowth

ProfitabilityProfitability Strong Business Stronger SoundnessSoundness EfficiencyEfficiency

Compatibility between a Ongoing R&D that Supports Enhanced Competitiveness low-carbon society and affluent lifestyles Optical communications Advanced control Rare earth-less technology technology technology

Smart Community Smart Grid Laser Optical submarine cable processing (40Gbps) machines EV/HEV rare earth-less Wavelength Elevators motor* multiplexing transmission SiC Power Devices High-speed, high-precision systems High-performance motors that processing machine realize elevated torque Optical transmission controllers that achieve without using rare earth system that realizes next- superior productivity magnets generation 100Gbps super Elevator controllers that Main businesses high-speed, long-distance maintain both super high ・Automotive equipment transmission speed and comfort EV/HEV Automotive ・FA equipment Main businesses Main businesses ・Air conditioning equipment Equipment ・ ・ Information transmission FA systems *Conducted under the auspices of New systems ・Building systems Energy and Industrial Technology ・Optical devices ・Space systems Development Organization (NEDO)

21 8. Technological Development: GrowthGrowth

ProfitabilityProfitability Strong Business Stronger SoundnessSoundness EfficiencyEfficiency Compatibility between a low-carbon society and affluent lifestyles: Smart community/Smart grid Realize optimal energy control that integrates Mitsubishi Electric’s expertise in all areas, from power systems to consumer electronics ⇒Optimizing overall community energy use (including maximizing eco-friendly energy ), improving daily safety, security, comfort and convenience, and pursuing higher energy conservation

・Building Energy Management Systems ・Building management systems Smart Grid including ・PV (photovoltaic systems) renewable energy ・Energy conservation support equipment ・Energy Measurement Smart grid ・Elevators, escalators • Supply & Demand Control System • Power System Stabilization System ・Air conditioners, fans, lighting, • Power System Stabilizer Optimizing Energy • Community Energy hot water supply, heating Management System • Distribution Control system supply/demand balance ・Security systems • Distribution Devices in a community-wide • Advanced Metering Infrastructure ・Heat pumps ・Heat storage Future promising areas for Next- ・Smart meters electrification to improve efficiency generation ・Demand response facilities Agriculture, Ports, Tap water, distribution Water purification facilities, etc. networks

PV-EV link HEMS Conduct Experiment ( ) ・Energy Management System May, 2012 ・Station Energy ・Energy Management ・All-Electric-appliance equipped ・PV (photovoltaic systems) ・Factory Energy Management System Management System System (coolers/heaters, ventilation, lighting, hot water supply, ・Energy Measurement ・PV (photovoltaic systems) ・Train Energy ・Battery Information cocking, etc.) ・Air conditioners, lighting ・Energy conservation support equipment Management System Service for EV ・Energy Measurement ・PV ・Elevators, escalators ・Traction Energy ・Air conditioners, fans, lighting, hot water supply, (photovoltaic PV-EV link Control System heating ・Demand response facilities systems) ・Heat pumps Power Conditioners ・Smart meters ・Smart meters ・Home gateways ・HEMS ・ EV Information Grid Network * xEMS: Energy Management System (B: Building, C: Community, F: Factory, H: Home), PV: Photovoltaic 22 8. Technological Development: GrowthGrowth

ProfitabilityProfitability Strong Business Stronger SoundnessSoundness EfficiencyEfficiency Compatibility between a low-carbon society and affluent lifestyles: SiC Power Devices Applicable products/systems Motor systems installed with SiC Develop wide-ranging Promoting low power loss inverters using EV drive equipment applications by maximizing device functionality IPM Features both low power Realized the industry’s smallest motor loss and high reliability systems installed with EV drive Full SiC equipment (March 2012) Further reductions in power loss by applying SiC transistors Full-SiC inverter section 100000 Verified 98.0% conversion Electric efficiency by utilizing power power Motor conditioners for PV systems 10000 (January 2011) section

Rolling stock Developed motor systems 1000 installed with SiC inverters Industry・ using EV drive equipment renewable energy (March 2012) Development specifications 100 Automobiles Hybrid ◆50% size reduction (compared with Mitsubishi Electric 10 Reduce power loss by applying SiC diodes products) Capacity (kVA) ◆ Home Commercialized SiC 50% or greater reduction in 1 appliances inverters for railcars energy loss (compared with (October 2011) Mitsubishi Electric Si inverters) 0.1 10 100 1000 10000 First in the world to release SiC inverter-mounted air Voltage (V) conditioners (November 2010) 23 8. Technological Development: GrowthGrowth

ProfitabilityProfitability Strong Business Stronger SoundnessSoundness EfficiencyEfficiency Compatibility between a low-carbon society and affluent lifestyles: Automotive Equipment for EV/HEV Realize high-efficiency EV/HEV systems utilizing the integrated technological capabilities 【IPU】 【EV-ECU】 【BMU】 Pursue size reductions Maximize power and power cost Develop vehicle and high performance by efficiencies through leading charge/discharge utilizing power device energy management technology control systems in technology, including SiC, Establish functional safety cooperation with and by developing high- technology that ensures the battery manufacturer efficiency heat dissipation safety of vehicles mounting technology

【Motors】 【Vehicle-mounted Controller units Construct basic structures Battery chargers】 control unit that realize size/weight (EV-ECU) 14V Pursuing high efficiency by reductions and high (BMU) incorporating proprietary efficiency battery power transformer technology, including Develop standard gradation controllers platforms capable of Depressor Total system optimization to adapting to a wide range Engines DC/DC achieve size/weight of applications Motors reductions converters

Boost Cell High-voltage Inverters monitoring DC/DC battery cells IPU converters unit Vehicle-mounted chargers External power source * ECU: Engine Control Unit, BMU: Battery Management Unit 24 9. Strengthening Management Foundation GrowthGrowth ProfitabilityProfitability SoundnessSoundness Continuous Improvements for a Stronger Management Foundation EfficiencyEfficiency

•• Improve Improve manufacturingmanufacturing structure;structure; broadenbroaden Just-in-TimeJust-in-Time (JIT)(JIT) activitiesactivities resultingresulting inin improvedimproved QCD;QCD; promotepromote in-housein-house Productivity manufacturingmanufacturing ofof keykey parts;parts; growgrow tiesties btwbtw parentparent factfactories/overseasories/overseas facilities,facilities, prpromoteomote JITJIT inin logisticslogistics etc.etc. and Quality •• Enhance Enhance activitiesactivities thatthat focusfocus onon built-inbuilt-in qualityquality fromfrom developmentdevelopment andand designdesign stagesstages

•• Concentrated Concentrated developmentdevelopment inin lineline withwith growthgrowth strategies;strategies; promote promote developmentdevelopment ofof keykey parts;parts; promotingpromoting commercializationcommercialization •• Reinforce Reinforce productproduct competitivenesscompetitiveness byby acceleratingaccelerating thethe developmentdevelopment ofof moremore compact,compact, lightweightlightweight andand energy-efficientenergy-efficient R&D and IP productsproducts thatthat contributecontribute toto aa reducedreduced environmentalenvironmental burdenburden •• Reinforce Reinforce productproduct competitivenesscompetitiveness throughthrough thethe synesynergyrgy ofof developmentdevelopment andand manufmanufacturingacturing capabilitiescapabilities whilewhile promotingpromoting innovationinnovation throughthrough strongerstronger industry-government-academiaindustry-government-academia tie-upstie-ups •• Reinforce Reinforce strategicstrategic IPIP activitiesactivities (create(create compcompetitiveetitive IPIP rights,rights, promote promote ISOISO conformity,conformity, etc.)etc.) PromotePromote R-SIGMAR-SIGMA 2121 ActivitiesActivities ・・FurtherFurther strengthenstrengthen costcost planningplanning andand VEVE activitiesactivities (expand(expand rawraw materialmaterial VAVA forfor steel/non-ferroussteel/non-ferrous metals,metals, useuse advancedadvanced andand high-high- functionalfunctional components,components, etc.)etc.) Procurement ・・OptimizeOptimize overalloverall globalglobal procurementprocurement (expand(expand overseasoverseas procuremprocurement,ent, increaseincrease procurementprocurement capacitycapacity ofof overseasoverseas bases,bases, etc.)etc.) ・・SupplierSupplier selectionselection andand focusfocus (classify(classify supplierssuppliers ,, bolsterbolster partnershipspartnerships directlydirectly connectedconnected toto businessbusiness strategies,strategies, etc.)etc.) ・・MinimizeMinimize lifecyclelifecycle costcost throughthrough greengreen procurementprocurement activitiesactivities (respond(respond toto compactcompact andand lightweightlightweight componentscomponents andand energyenergy conservation,conservation, etc.)etc.) •• Promoting Promoting strategicstrategic relationshipsrelationships withwith targetedtargeted customers,customers, bolsteringbolstering proposal-basedproposal-based marketingmarketing andand service,service, expandexpand growthgrowth potentialpotential byby promotingpromoting andand strengtheningstrengthening coordinatedcoordinated marketingmarketing inin cross-divisionalcross-divisional terms,terms, andand takingtaking Marketing actionaction toto obtainobtain allall potentialpotential ordersorders •• Strengthen Strengthen businessbusiness structurestructure inin ChineseChinese andand otherother emergingemerging marketsmarkets (India,(India, Vietnam,Vietnam, centralcentral andand easterneastern EuropeEurope and Service andand Russia)Russia) wherewhere demanddemand isis anticipatedanticipated toto growgrow withwith aa focusfocus onon thethe environment,environment, energyenergy conservation,conservation, safetysafety andand security,security, andand socialsocial infrinfrastructureastructure constructionconstruction Financials •• Reduce Reduce inventories,inventories, securitizationsecuritization ofof accountsaccounts receivable,receivable, promotepromote furtherfurther streamliningstreamlining ofof assetsassets •• Improvement Improvement ofof GroupGroup financesfinances (Global(Global CMS…yen,CMS…yen, dollars,dollars, euros,euros, baht,baht, yuan,yuan, etc.)etc.) Human •• Station Station andand interchangeinterchange humanhuman resourcesresources amongamong businessesbusinesses toto makemake strong strong businessesbusinesses strongerstronger •• Implement Implement intensiveintensive trainingtraining andand educationeducation programs;programs; createcreate internal,internal, virtualvirtual collegecollege forfor businessbusiness innovationinnovation Resources •• Ensure Ensure andand cultivatecultivate personnelpersonnel thatthat supportsupport globalglobal businessbusiness operationsoperations

Strengthen competitiveness in terms of quality, costs, production technology capabilities, development capabilities, intellectual property, and marketing and service *QCD: Quality/Cost/Delivery, R-SIGMA: Relation Strategic Integration for Global MArkets, CMS: Cash Management System 25 10. Improve Financial Standing GrowthGrowth ProfitabilityProfitability SoundnessSoundness EfficiencyEfficiency Enhance and strengthen risk tolerance through the balanced Generate stable cash flow by raising application of funds (Improve financial standing, return value to profitability and streamlining assets shareholders, invest in growth fields)

(Billions of yen) Shareholder returns Debt Reduction (%) (Cash dividends) Improve Profitability 2,000 40.6% (At the March 31) (¥/share) 40 14 • Structural reforms for improved profitability ¥13 ¥12 ¥12 • Stronger focus on quality, cost, production 1,500 Debt to 12 asset ratio technologies, development, intellectual property, 1,769.3 30 ¥10 marketing and services 10 % ¥8 • Termination of businesses, strategic alliances 1,000 20.3 16.7% 8 16.0% 20 14.5% ¥6 15.8% 6 Increase Asset & Cash Turnover 500 677.8 10 4 ¥4 • Promote inventory reduction mainly through Just In 550.7 537.5 542.2 Time activities and securitization of accounts Debt 484.3 2 receivable, etc. 0 0 0 • Enhance Group finances 97 07 08 09 10 11 (FY) 05 06 07 08 09 10 11 (FY) (Global CMS: yen, dollars, euros, baht, yuan, etc.) R&D Invest in Growth Field Capital Investment Free Cash Flow (Billions of yen) (Billions of yen) 200 181.8 200 191.9 169.6 179.2 (Billions Cash flow from 168.7 167.7 160.0 operating activities 148.7 151.7 of yen) 150 144.4 133.7 150 Increase 400 Free Cash Flow profitability by strengthening 91.9 300 businesses 100 100 195.7 182.0 200 126.5 100 50 50 0 -100 -33.8 0 0 -80.9 07 08 09 10 11 12 (FY) 07 08 09 10 11 12 (FY) -200 Focus Cash flow from investing investment on : Energy and Electric : Industrial Automation : Information and Communication -300 growth fields activities : Electronic Devices : Home Appliance : Other 07 08 09 10 11 (FY)

26 11. Strengthen Enviromental Management GrowthGrowth ProfitabilityProfitability SoundnessSoundness /Environment-Oriented Businesses EfficiencyEfficiency Contribution to achieving a Low-Carbon, Recycling-Oriented Society through an Array of Energy-Saving Products

2021 Environmental Vision (Long-range vision with 2021 as target year)

PowerPower DevicesDevices SmartSmart Grid-RelatedGrid-Related Contributions to People and Earth  Reduce CO2 emissions from product usage by 30% through Photovoltaic Systems Popularize and improve energy-saving products  Promote 3R Products Photovoltaic Systems Technology and (Reduce, Reuse, Recycle) High-Efficiency Automobile  Reduce total CO2 emissions from Reduce resource input by 30%, recycle 100% High-Efficiency Automobile production by 30% Continue investment in energy-saving Action of all plastic home appliances EquipmentEquipment infrastructures, adopt high-efficiency equipment, etc.  Zero Emission Aim for zero generation of landfill-destined  Contribute to CO2 emission reduction from power generation waste products Strengthen solar power generation/ renewable energy businesses, etc. Recycling- Low-Carbon Oriented CleanClean EnergyEnergy Society Society (nuclear(nuclear powerpower generation, IGCC) generation, IGCC) Working to Ensure Bio-Diversity *IGCC: Integrated coal Gasification Working to Ensure Bio-Diversity Combined Cycle Ensure Harmony with Nature, Foster Environmental Awareness Energy-SavingEnergy-Saving CountermeasureCountermeasure andand SupportSupport EquipmentEquipment

High-EfficiencyHigh-Efficiency Heat Pump Application Energy-Related Building Equipment Heat Pump Application Energy-Related Building Equipment LightingLighting Home Appliance Recycling (Energy-saving(Energy-saving diagnostics,diagnostics, countermeasurescountermeasures andand Home Appliance Recycling operationsoperations management)management)

27 12. Forecast for FY2012 GrowthGrowth ProfitabilityProfitability SoundnessSoundness EfficiencyEfficiency (Net Sales:Billion Yen)Operating Income (Operating Income: Billions of Yen) 5,000 (Right) 400 4,049.8 Home 4,000 Appliances 3,665.1 3,645.3 3,639.4 3,740.0 264.0 3,353.2 300 Electronic Devices 233.7 225.4 3,000 200.0 Information & Communication 200 Systems 2,000 Industrial Automation Systems 139.7 100 1,000 Energy & 94.3 Electric Net Sales (Left) Systems 0 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 0

Actual Actual Actual Actual 6 Months Actual Forecast 6 Months Results Net Sales 4,049.8 3,665.1 3,353.2 3,645.3 1,743.5 3,639.4 1,710.0 3,740.0 Operating 264.0 139.7 94.3 233.7 113.6 225.4 80.0 200.0 Income (Operating Income Ratio) 6.5% 3.8% 2.8% 6.4% 6.5% 6.2% 4.7% 5.3% Income before income taxes 244.1 43.9 64.2 210.2 105.8 224.0 65.0 180.0 Net Income 157.9 12.1 28.2 124.5 69.5 112.0 45.0 120.0

*Refund and other payments related to the electronic systems business are not included in results forecasts. 2828 12. Forecast for FY2012: Segment Forecast (Unit: Billions Yen) FY2007 FY2008 FY2009 FY2010 FY2011 FY2012

Actual Actual Actual Actual Actual Forecast

Energy & Net Sales 1,057.9 1,043.6 1,039.6 1,027.7 1,027.1 1,050.0 Electric Operating Systems Income/Loss 68.5 74.5 74.7 83.0 84.9 73.0 Industrial Net Sales 1,017.5 851.6 733.1 927.0 978.3 1,020.0 Automation Operating Systems Income/Loss 129.2 49.9 26.1 100.0 101.1 95.0 Information & Net Sales 644.3 582.1 526.1 487.9 516.3 520.0 Communication Operating Systems Income/Loss 2.3 24.8 18.6 13.7 21.3 12.0 Net Sales Electronic 192.0 166.9 138.9 175.9 200.7 190.0 Devices Operating Income/Loss 8.3 -29.8 -7.1 5.9 3.5 2.0

Home Net Sales 1,000.2 915.7 824.6 924.4 849.2 890.0 Appliances Operating Income/Loss 65.7 34.7 4.8 42.0 22.3 29.0 Net Sales 660.8 596.0 552.9 609.4 611.6 620.0 Others Operating Income/Loss 16.9 12.3 3.2 14.4 20.3 17.0 Net Sales 4,049.8 3,665.1 3,353.2 3,645.3 3,639.4 3,740.0 Total Operating Income/Loss 264.0 139.7 94.3 233.7 225.4 200.0

29 13. Management Targets GrowthGrowth ProfitabilityProfitability SoundnessSoundness EfficiencyEfficiency Integrate vast variety of our competitive electric-electronic businesses; enjoy the maximum synergetic effect

Management Targets to be Continuously and Stably Achieved

Ratio of operating income to net sales 5%5% oror moremore Achieved in FY07: 6.5%, FY08: 3.8%, FY09: 2.8%, Achieved in FY10: 6.4%, Achieved in FY11: 6.2%

ROE 10%10% oror moremore Achieved in FY07: 15.1%, FY08: 1.3%, FY09: 3.1%, Achieved in FY10: 12.4%, Achieved in FY11: 10.3%

Ratio of the interest-bearing debt to total assets 15%15% oror lessless FY07: 15.8%, FY08: 20.3%, FY09: 16.7%, Achieved in FY10: 14.5%, FY11: 16.0%

Pursue ever Higher Growth

30 “Change is progress. Continuous change is the wellspring of new value.” Cautionary Statements The expectation of operating results herein and any associated statement to be made orally with respect to the Company’s current plans, estimates, strategies and beliefs, and any other statements that are not historical facts are forward-looking statements. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimated,” “targeted,” along with any variations of these words and similar expressions are intended to identify forward-looking statements that include but are not limited to projections of revenues, earnings, performance and production. While the statements herein are based on certain assumptions and premises that the Company trusts and considers to be reasonable under the circumstances to the date of announcement, you are requested to kindly take note that actual operating results are subject to change due to any of the factors as contemplated hereunder and/or any additional factor unforeseeable as of the date of this announcement. Such factors materially affecting the expectations expressed herein shall include but are not limited to the following. As such, additional factors may arise at any given time. 1. Any change in worldwide economic and social conditions, as well as laws, regulations, taxation and other legislation 2. Changes in foreign currency exchange rates, especially yen/dollar rates 3. Changes in stock markets, especially in Japan 4. Changes in balance of supply and demand of products that may affect prices and volume, as well as material procurement conditions 5. Changes in the ability to fund raising, especially in Japan 6. Uncertainties relating to patents, licenses and other intellectual property, including disputes involving patent infringement 7. New environmental regulations or the arising of environmental issues 8. Defects in products or services 9. Litigation and legal proceedings brought and contemplated against the Company or its subsidiaries and affiliates that may adversely affect operations or finances 10. Technological change, the development of products using new technology, manufacturing and time-to-market 11. Business restructuring 12. Occurrence of large-scale disasters including earthquakes, typhoons, tsunami, fires and others 13. Social or political upheaval caused by terrorism, war, pandemic by new strains of influenza and other diseases, or other factors. 31