Last February, we had the honor of having Yasumichi Tazunoki visit us in Pavia and Bordeaux, at our M21 plant and at our new plant MAF (MEHITS Aircalo France), respectively. Tazunoki covers the role of Executive Officer of the Mitsubishi Electric Group and, in particular, is Group President of Living Environment & Digital Media Equipment (LDG) .

We report excerpts from his speech at our plants.

Last year, total sales of Mitsubishi Electric group reached around 33 billion EURO and the operating profit reached 2 billion EURO, operating profit margin was 6.2%. Sales volume and operating profit are the highest record in Mitsubishi Electric long history .

As for the sales in our LDG business in 2023, it reached 9 billion EURO and the operating profit reached 0.6 billion EURO, and operating profit margin was 5.8%. It is 27% of total group in sales, and 25% in profit. So we are the biggest business group in Mitsubishi Electric.

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This year FY24, as for total Mitsubishi Electric group, we estimated 3% growth in sales and operating profit margin will be 7.4%. And as for LDG business, 7% of sales growth and 7.8% of operating profit margin is estimated. So LDG business is expected as the growth driver in total company. For our HVAC business, Europe is the second largest market after Japan and it consists of around 30% of global HVAC business, total turnover is around 2.6 billion euro. And we expect turnover of over 3billion euro before 2030, in spite of current European economic condition is not good.

In order to achieve this target, expectations for MEHITS is extremely high. MEHITS is in charge of the Applied Business, which has the highest expectations for future growth, along with the residential heat pump business. We hope that MEHITS will continue to play a leading role in expanding its business including IT cooling market, which is expected to grow globally.

MEHITS recent performance has improved significantly, thank to your continuous efforts overcoming COVID-19. We would like to achieve over 1 billion euro global turnover in near future. This is a very high goal, but in order to meet the expectations of the entire company, let’s not be satisfied with our recent performance and work together to achieve even higher growth and profitability.

Finally, I have heard that various activities at MEHITS have resulted in improvements in KPI indicators such as quality, productivity, and inventory control, which I highly appreciate.

Now that our business is growing, I would like every one of you to keep in mind that there will be no growth without thorough implementation of basic principles such as quality, safety, and compliance as a company. I would like the entire MEHITS Group, including CVI of India, CCU of China, and MAF of France, to work on this.

Heartfelt thanks to our President for the visit. His presence and attentions to MEHITS certainly strengthened our commitment and motivation in continuing to improve and innovate.