Notice of Company Split (Simple Absorption-Type Split) Related to the Automotive Equipment Business and Conclusion of Share Transfer Agreement for Transfer of 50% of Shares in Mitsubishi Electric Mobility

Overview and Purpose

This transaction stems from strategic partnership considerations for joint operation of the automotive equipment business. Through a simple absorption-type company split with Mitsubishi Electric Mobility as the succeeding company, Mitsubishi Electric Mobility will succeed the target business, and Mitsubishi Electric Corporation will enter into a share transfer agreement to transfer 50% of the issued shares to Lin Yin International Investment. The transfer price is expected to be 115 billion yen; the enterprise value of the target business is 320 billion yen, and 230 billion yen was agreed as the equity value. Thereafter, procedures will be carried out on the prescribed schedule, conditional upon approvals under domestic and foreign competition laws.

Outlook and Impact

As a result of this transaction, Mitsubishi Electric Mobility is expected to change from a consolidated subsidiary to an equity-method affiliate from the fiscal year ending March 2028. Mitsubishi Electric Corporation expects to record an impairment loss of approximately 100 billion yen in the consolidated financial results for the fiscal year ending March 2027, and plans to announce its earnings guidance for the fiscal year ending March 2027 on October 30, 2026. In the long term, the company will continue its strategy of deploying Japanese-origin technology and quality into global markets.