TOKYO, Apr 4, 2025 - (JCN Newswire) - 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.
Inquiry Recipient
Mitsubishi Corporation
Telephone: +81-3-3210-2171