Press Room
July 16, 2010
Mitsubishi Corporation Midterm Corporate Strategy 2012
Creating Sustainable Corporate Value
Mitsubishi Corporation (MC) has released its new three-year management plan, the Midterm Corporate Strategy 2012, which will cover the year ending March 2011 through the year ending March 2013.
MC will strengthen existing earnings drivers and develop new business for future growth in light of changes in the external business environment, including fast-growing emerging economies and stagnating OECD countries, the birth of new growth markets triggered by changing values, technological innovation and the rise of emerging economies, and MC’s expanding stakeholder base. Midterm Corporate Strategy 2012 has also been drawn up in light of MC’s internal business environment, which is undergoing changes in terms of the company’s business portfolio, diversification of its business models and a shift of businesses to subsidiaries and affiliates.
Financially, MC is targeting 500 billion yen in consolidated net income in the year ending March 2013 with a return on equity (ROE) throughout the three-year period at 12-15%. This target aims to surpass MC’s highest consolidated net income of 470.9 billion yen, which was recorded in the year ended March 2008. Also, MC will maintain a sound balance sheet by targeting a net debt-equity ratio (net DER) of 1.0-1.5 times. The company will maintain a dividend payout ratio in the range of 20-25%.
MC will maintain investment at a constant 700-800 billion yen per year, with a total of 2.0-2.5 trillion yen invested over the midterm corporate strategy’s three–year period. Specifically, MC will invest 400-500 billion yen in strategic domains and regions, 1.0-1.2 trillion yen in mineral resources, and oil and gas resources, and 600-800 billion yen in other areas.
In order to realize these objectives, MC will take the following initiatives:
- Designate strategic domains and regions: MC will respond to fast-growing emerging economies and new growth markets.
･ MC has designated infrastructure and global environmental businesses as strategic domains, responding to new growth markets and helping to solve global problems.･ MC has designated China, India and Brazil as strategic regions, capturing fast-growing domestic demand in emerging markets. - Initiatives to leverage MC’s diversified business portfolio: MC will cultivate several earnings drivers by leveraging its diversified business portfolio and business models.
･ MC will build a tool capable of visualizing its diversified business portfolio, and set targets according to business models and business risk profiles. - Initiatives to solidify MC’s diversified business portfolio: MC will enhance the MC Group’s strengths by solidifying its diversified business portfolio.
･ MC has established a new committee (under the Executive Committee) chaired by the President & CEO in order to promote investment in strategic domains/regions and company-wide projects.･ MC will review its management platform, including regional offices, human resources and IT governance, in light of the diversification of its business models.
Under this midterm corporate strategy, MC will aim to create sustainable corporate value (sustainable economic value, sustainable societal value and sustainable environmental value) by helping to solve global problems through business activities in light of the needs and expectations of all stakeholders.
Sustainable Corporate Value
Sustainable Economic Value:
MC will aim for sound earnings growth and increased corporate value through the proactive reshaping of its business models and portfolio.
Sustainable Societal Value:
MC will contribute to economic development as a responsible corporate citizen.
Sustainable Environmental Value:
MC will aim to conserve and contribute to the global environment, recognizing our planet as its greatest stakeholder.
Midterm Corporate Strategy 2012 (PDF:111KB)Inquiry Recipient
Mitsubishi CorporationTelephone:+81-3-3210-2171 / Facsimile:+81-3-5252-7705
