Notice Regarding Establishment of a Subsidiary for Joint Venture of the Power Distribution and Control Equipment Business, Company Split (Simplified Split) between the Company and the Subsidiary, and Execution of Share Transfer Agreement with ABB

Overview of the Transaction

Mitsubishi Electric Corporation plans to establish a wholly owned new company and carry out an absorption-type company split (simplified absorption-type split) to transfer its power distribution and control equipment business in order to foster growth and strengthen competitiveness. After the split, the new company will succeed the rights and obligations of the target business, and overseas sales will be transferred to ABB’s local subsidiaries. Concurrently, the company will enter into a share transfer agreement to transfer 51% of the new company’s shares to ABB, thereby establishing a joint venture with ABB. This structure aims to enhance integrated operations domestically and internationally and accelerate global expansion.

Impact and Future Schedule

The new company is scheduled to be established on December 1, 2026; the split agreement is scheduled to be executed on August 1, 2027; the effective date of the split and the share transfer execution date are both scheduled for October 1, 2027 (each subject to conditions being met and approvals). As the transaction will result in ABB becoming a consolidated subsidiary, approximately 90,000 million yen may be recorded in other income/expenses in fiscal 2028 in relation to the share transfer. The new company will leverage ABB’s global resources together with Mitsubishi Electric Corporation’s technology and customer base to enhance competitiveness and pursue long-term growth.