MITSUBISHI ELECTRIC CORPORATION
PUBLIC RELATIONS DIVISION
7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo, 100-8310 Japan
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Investor Relations Group, Corporate Finance Division Public Relations Division Mitsubishi Electric Corporation Mitsubishi Electric Corporation
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TOKYO, October 29, 2015 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its financial results for the first half and second quarter, ended September 30, 2015, of the current fiscal year ending March 31, 2016 (fiscal 2016).
Consolidated Half-year Results (April 1, 2015 - September 30, 2015)
Net sales: 2,063.2 billion yen (5% increase from the same period last year) Operating income: 127.0 billion yen (5% increase from the same period last year) Income before income taxes: 133.0 billion yen (9% decrease from the same period last year) Net income attributable to
Mitsubishi Electric Corp.: 92.9 billion yen (5% decrease from the same period last year)
The business environment in the first half of fiscal year 2016, from April through September 2015, experienced a stronger trend of economic slowdown in China and other East Asian markets, weakness in consumption in Japan and stronger stagnation in certain emerging markets. Meanwhile, the U.S. economy saw continued buoyancy and the European market showed gradual recovery. In the foreign currency exchange market, the yen was weaker against the U.S. dollar compared to the previous year.
Under these circumstances, consolidated net sales in the first half of fiscal 2016 increased by 5% compared to the same period of the previous fiscal year to 2,063.2 billion yen, due to increased sales in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments. Consolidated operating income also increased by 5% compared to the same period of the previous fiscal year to 127.0 billion yen, due to increased profits in the Industrial Automation Systems and Electronic Devices segments.
Consolidated Financial Results by Business Segment (First Half, Fiscal 2016)
Energy and Electric Systems
Total sales:
523.7 billion yen
(4% increase from the same period last year)
Operating income:
3.7 billion yen
(8.7 billion yen decrease from the same period last year)
The social infrastructure systems business saw increases both in orders and sales compared to the same period of the previous fiscal year due to increases in the power systems business and the rolling-stock equipment business in Japan, and also due to the weaker yen.
The building systems business experienced increases both in orders and sales compared to the same period of the previous fiscal year, owing to growth in the new installation of elevators and escalators outside Japan and the renewal business in Japan, as well as the weaker yen.
As a result, total sales for this segment increased by 4% from the same period of the previous fiscal year. Operating income decreased by 8.7 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios and lower profit in the power systems business.
Industrial Automation Systems
Total sales: 661.5 billion yen (9% increase from the same period last year)
Operating income: 83.9 billion yen (17.6 billion yen increase from the same period last year)
The factory automation systems business saw a decrease in orders from the same period of the previous fiscal year mainly due to lower demand outside Japan, while sales experienced an increase from the same period of the previous fiscal year due to growth in capital expenditures relating to the automotive industry and facility replacements by manufacturers in Japan, and due additionally to the weaker yen.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in the car sales market in North America and Europe, as well as the positive influence of the weaker yen.
As a result, total sales for this segment increased by 9% from the same period of the previous fiscal year. Operating income increased by 17.6 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales:
224.0 billion yen
(10% decrease from the same period last year)
Operating income (loss):
(3.8 billion yen)
(9.1 billion yen decline from the same period last year)
The telecommunications equipment business remained substantially unchanged in both orders and sales compared to the same period of the previous fiscal year.
The information systems and service business saw an increase in sales compared to the same period of the previous fiscal year, mainly owing to growth in the system integrations business.
The electronic systems business saw an increase in orders compared to the same period of the previous fiscal year, while sales experienced a decrease compared to the same period of the previous fiscal year due to a shift in the portfolio of large-scale projects in the defense systems business.
As a result, total sales for this segment decreased by 10% compared to the same period of the previous fiscal year. Operating income declined by 9.1 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Electronic Devices
Total sales:
123.2 billion yen
(16% increase from the same period last year)
Operating income:
16.3 billion yen
(8.5 billion yen increase from the same period last year)
The electronic devices business saw a decrease in orders from the same period of the previous fiscal year due to a decrease in demand mainly for power modules used in railcar, industrial and consumer applications and for industrial-use LCD modules. Sales experienced an increase from the same period of the previous fiscal year due to an increase primarily in automotive-use power modules and optical communication devices, and additionally due to the weaker yen.
As a result, total sales for the segment increased by 16% compared to the same period of the previous fiscal year. Operating income increased by 8.5 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Home Appliances
Total sales:
511.1 billion yen
(7% increase from the same period last year)
Operating income:
33.1 billion yen
(2.0 billion yen decrease from the same period last year)
The home appliances business saw an increase in sales of 7% compared to the same period of the previous fiscal year due to an increase in sales of air conditioners for homes in Japan and air conditioners for European and Asian markets, as well as the positive influence of the weaker yen.
Operating income decreased by 2.0 billion yen compared to the same period of the previous fiscal year largely due to a decline in prices.
Others
Total sales:
338.4 billion yen
(4% decrease from the same period last year)
Operating income:
7.3 billion yen
(0.9 billion yen decrease from the same period last year)
Sales decreased by 4% compared to the same period of the previous fiscal year due to decreases mainly at affiliated companies involved in materials procurement.
Operating income decreased by 0.9 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Consolidated Second-quarter Results (July 1, 2015 - September 30, 2015)
Net sales: 1,074.8 billion yen (1% increase from the same period last year) Operating income: 72.3 billion yen (17% increase from the same period last year) Income before income taxes: 65.8 billion yen (16% decrease from the same period last year) Net income attributable to
Mitsubishi Electric Corp.: 46.6 billion yen (15% decrease from the same period last year)
Consolidated net sales for this quarter, from July through September 2015, was 1,074.8 billion yen, a 1% increase from the same period of the previous fiscal year, due primarily to increased sales in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments. Consolidated operating income was 72.3 billion yen, an increase of 17% from the same period of the previous fiscal year, with increased profits in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments.
Consolidated Financial Results by Business Segment (Second Quarter, Fiscal 2016)
Energy and Electric Systems
Total sales: | 287.0 billion yen | (3% increase from the same period last year) |
Operating income: | 10.4 billion yen | (5.7 billion yen increase from the same period last year) |
The social infrastructure systems business saw increases both in orders and sales compared to the same period of the previous fiscal year due to an increase in the power systems business worldwide, and also due to the weaker yen, despite a decrease in sales of the public utility systems in Japan.
The building systems business experienced increases both in orders and sales compared to the same period of the previous fiscal year, owing to growth in the new installation of elevators and escalators outside Japan and the renewal business in Japan, as well as the weaker yen.
As a result, total sales for this segment increased by 3% from the same period of the previous fiscal year. Operating income increased by 5.7 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Industrial Automation Systems
Total sales: | 333.1 billion yen | (6% increase from the same period last year) |
Operating income: | 41.0 billion yen | (9.9 billion yen increase from the same period last year) |
The factory automation systems business saw a decrease in orders from the same period of the previous fiscal year mainly due to lower demand outside Japan, while sales experienced an increase from the same period of the previous fiscal year due to growth in capital expenditures relating to the automotive industry and facility replacements by manufacturers in Japan, and due additionally to the weaker yen.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in the car sales market in North America and Europe, as well as the positive influence of the weaker yen.
As a result, total sales for this segment increased by 6% from the same period of the previous fiscal year. Operating income increased by 9.9 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales: | 128.6 billion yen | (18% decrease from the same period last year) |
Operating income (loss): | (2.0 billion yen) | (9.1 billion yen decline from the same period last year) |
The telecommunications equipment business saw an increase in orders compared to the same period of the previous fiscal year owing primarily to an increase in communications infrastructure products, while sales remained substantially unchanged from the same period of the previous fiscal year.
The information systems and service business saw little change in sales compared to the same period of the previous fiscal year.
The electronic systems business saw an increase in orders compared to the same period of the previous fiscal year, while sales experienced a decrease compared to the same period of the previous fiscal year due to a shift in the portfolio of large-scale projects in the defense systems business.
As a result, total sales for this segment decreased by 18% compared to the same period of the previous fiscal year. Operating income declined by 9.1 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Electronic Devices | ||
Total sales: | 57.0 billion yen | (3% increase from the same period last year) |
Operating income: | 4.0 billion yen | (0.1 billion yen increase from the same period last year) |
The electronic devices business saw a decrease in orders from the same period of the previous fiscal year due to a decrease in demand mainly for power modules used in railcar, industrial and consumer applications and for industrial-use LCD modules. Sales experienced an increase from the same period of the previous fiscal year due to an increase primarily in automotive-use power modules and optical communication devices, and additionally due to the weaker yen.
As a result, total sales for this segment increased by 3% compared to the same period of the previous fiscal year. Operating income increased by 0.1 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Home Appliances | ||
Total sales: | 257.0 billion yen | (6% increase from the same period last year) |
Operating income: | 16.9 billion yen | (2.9 billion yen increase from the same period last year) |
The home appliances business saw an increase in sales of 6% compared to the same period of the previous fiscal year due to an increase in sales of air conditioners for homes in Japan and air conditioners for European markets, as well as the positive influence of the weaker yen.
Operating income increased by 2.9 billion yen compared to the same period of the previous fiscal year due to an increase in sales and other factors.
Others | ||
Total sales: | 175.2 billion yen | (4% decrease from the same period last year) |
Operating income: | 6.4 billion yen | (unchanged from the same period last year) |
Sales decreased by 4% compared to the same period of the previous fiscal year due to decreases mainly at affiliated companies involved in materials procurement.
Operating income remained substantially unchanged from the same period of the previous fiscal
year.
Financial Standing
The Company's total assets as of the end of this fiscal quarter decreased from the end of the previous fiscal year by 195.5 billion yen to 3,863.8 billion yen. The change in the balance of total assets mainly resulted from increases in the balances of cash and cash equivalents of 4.9 billion yen, and inventories of 11.8 billion yen as a result of work-in-process recorded in commensurate with progress in job orders under pertinent contracts, while trade receivables showed a decrease of 178.8 billion yen resulting from various factors including credit collection.
Total liabilities decreased from the end of the previous fiscal year by 163.4 billion yen to 1,965.8 billion yen. The outstanding balances of debts and corporate bonds decreased by 24.5 billion yen from the end of the previous fiscal year to 357.4 billion yen. The ratio of interest bearing debt to total assets declined to 9.3%, which was a 0.1 point decrease compared to the end of the previous fiscal year. Retirement and severance benefits increased by 16.8 billion yen, mainly owing to a decrease in pension assets resulting from a decline in stock prices, while trade payables decreased by 117.1 billion yen and other current liabilities decreased by
42.6 billion yen.
Mitsubishi Electric Corporation shareholders' equity decreased by 30.3 billion yen compared to the end of the previous fiscal year to 1,811.8 billion yen. Shareholders' equity ratio, representing a 1.5 point increase compared to the end of the previous fiscal year, was recorded at 46.9%. The changes referred to above primarily resulted from a dividend payment of 38.6 billion yen, together with a decrease in accumulated other comprehensive income by 84.6 billion yen due to such factors as the decline in stock prices, despite a recorded net income attributable to Mitsubishi Electric Corporation of 92.9 billion yen.
Cash flows from operating activities decreased by 45.4 billion yen compared to the same period of the previous fiscal year to 179.8 billion yen (cash in) resulting primarily from a decrease in advance payments. Cash flows from investing activities increased by 6.8 billion yen compared to the same period of the previous fiscal year to 95.0 billion yen (cash out). Consequently, free cash flow totaled 84.8 billion yen (cash in). Cash flows from financing activities were 69.4 billion yen (cash out) mainly due to dividend payments.
Forecast for Fiscal 2016 (year ending March 31, 2016)
The consolidated earnings forecast for fiscal 2016, ending March 31, 2016, has been revised from the previous forecast announced on July 30, 2015. Net sales is expected to exceed the previous forecast owing mainly to increases in the Energy and Electric Systems and the Home Appliances segments largely resulting from the positive influence of the weaker yen. Operating income is, however, expected to fall below the previous forecast due primarily to lower profit in the Energy and Electric Systems segment and decreasing revenues in the Information and Communication Systems and Electronic Devices segments. Net income attributable to Mitsubishi Electric Corp. is expected to remain unchanged from the previous forecast due mainly to decreases in non-operating expense and tax expense.
Previous forecast (announced July 30) | Current forecast | |
Net sales: | 4,370.0 billion yen | 4,380.0 billion yen (1% increase from fiscal 2015) |
Operating income: | 320.0 billion yen | 300.0 billion yen (6% decrease from fiscal 2015) |
Income before income taxes: | 320.0 billion yen | 315.0 billion yen (2% decrease from fiscal 2015) |
Net income attributable to Mitsubishi Electric Corp.: | 220.0 billion yen | 220.0 billion yen (6% decrease from fiscal 2015) |
-
Consolidated Half-year Results
(In billions of yen except where noted)
FY '15 1st half (A) (Apr. 1, 2014 -
Sept. 30, 2014)
FY '16 1st half (B) (Apr. 1, 2015 -
Sept. 30, 2015)
B - A
B/A (%)
Net sales
1,972.8
2,063.2
90.4
105
Operating income
121.3
127.0
5.6
105
Income before income taxes
145.9
133.0
(12.8)
91
Net income attributable to Mitsubishi Electric Corp.
97.8
92.9
(4.9)
95
Basic net income per share attributable to Mitsubishi Electric Corp.
45.58 yen
43.29 yen
(2.29 yen)
95
-
Consolidated Second-quarter Results
(In billions of yen except where noted)
FY '15 Q2 (A) (Jul. 1, 2014 -
Sept. 30, 2014)
FY '16 Q2 (B) (Jul. 1, 2015 -
Sept. 30, 2015)
B - A
B/A (%)
Net sales
1,062.1
1,074.8
12.6
101
Operating income
62.0
72.3
10.3
117
Income before income taxes
78.0
65.8
(12.1)
84
Net income attributable to Mitsubishi Electric Corp.
54.8
46.6
(8.2)
85
Basic net income per share attributable to Mitsubishi Electric Corp.
25.54 yen
21.71 yen
(3.83 yen)
85
Notes:
Consolidated financial charts made in accordance with U.S. GAAP.
The Company has 176 consolidated subsidiaries.
Consolidated Profit and Loss Statement (First Half, Fiscal 2016)(In millions of yen)
FY '15 1st half
(Apr. 1, 2014 -
Sept. 30, 2014)
% of
FY '16 1st half
(Apr. 1, 2015 -
Sept. 30, 2015)
% of
-
Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment
FY '15 1st half (Apr. 1, 2014 -
Sept. 30, 2014)
FY '16 1st half (Apr. 1, 2015 -
Sept. 30, 2015)
C - A
D - B
C/A (%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (loss) (D)
Energy and Electric Systems
502,194
12,515
523,778
3,773
21,584
(8,742)
104
Industrial Automation Systems
609,301
66,263
661,520
83,919
52,219
17,656
109
Information and Communication Systems
248,512
5,340
224,037
(3,815)
(24,475)
(9,155)
90
Electronic Devices
106,525
7,772
123,208
16,351
16,683
8,579
116
Home Appliances
477,100
35,225
511,138
33,194
34,038
(2,031)
107
Others
351,243
8,273
338,484
7,367
(12,759)
(906)
96
Subtotal
2,294,875
135,388
2,382,165
140,789
87,290
5,401
104
Eliminations and other
(322,037)
(13,997)
(318,880)
(13,775)
3,157
222
-
Total
1,972,838
121,391
2,063,285
127,014
90,447
5,623
105
*Note: Inter-segment sales are included in the above chart.
-
Sales and Operating Income by Location
(In millions of yen)
Location
FY '15 1st half (Apr. 1, 2014 -
Sept. 30, 2014)
FY '16 1st half (Apr. 1, 2015 -
Sept. 30, 2015)
C - A
D - B
C/A (%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (D)
Japan
1,621,249
71,991
1,625,040
61,219
3,791
(10,772)
100
North America
177,027
2,500
223,338
4,439
46,311
1,939
126
Asia (excluding Japan)
486,962
40,101
544,863
48,280
57,901
8,179
112
Europe
193,530
6,788
207,060
9,755
13,530
2,967
107
Others
21,657
244
24,906
575
3,249
331
115
Subtotal
2,500,425
121,624
2,625,207
124,268
124,782
2,644
105
Eliminations
(527,587)
(233)
(561,922)
2,746
(34,335)
2,979
-
Total
1,972,838
121,391
2,063,285
127,014
90,447
5,623
105
*Note: Inter-segment sales are included in the above chart.
- Sales by Location of Customers
-
Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment
FY '15 Q2
(Jul. 1, 2014 -
Sept. 30, 2014)
FY '16 Q2
(Jul. 1, 2015 -
Sept. 30, 2015)
C - A
D - B
C/A (%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (loss) (D)
Energy and Electric Systems
278,961
4,685
287,097
10,439
8,136
5,754
103
Industrial Automation Systems
313,974
31,104
333,170
41,052
19,196
9,948
106
Information and Communication Systems
155,972
7,104
128,628
(2,060)
(27,344)
(9,164)
82
Electronic Devices
55,290
3,913
57,091
4,019
1,801
106
103
Home Appliances
242,383
13,975
257,046
16,950
14,663
2,975
106
Others
183,185
6,554
175,294
6,464
(7,891)
(90)
96
Subtotal
1,229,765
67,335
1,238,326
76,864
8,561
9,529
101
Eliminations and other
(167,575)
(5,263)
(163,481)
(4,482)
4,094
781
-
Total
1,062,190
62,072
1,074,845
72,382
12,655
10,310
101
*Note: Inter-segment sales are included in the above chart.
-
Sales and Operating Income by Location
(In millions of yen)
Location
FY '15 Q2
(Jul. 1, 2014 -
Sept. 30, 2014)
FY '16 Q2
(Jul. 1, 2015 -
Sept. 30, 2015)
C - A
D - B
C/A (%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (D)
Japan
889,001
32,848
866,669
34,404
(22,332)
1,556
97
North America
86,177
248
111,183
3,363
25,006
3,115
129
Asia (excluding Japan)
242,536
17,677
255,312
19,262
12,776
1,585
105
Europe
94,211
3,206
102,762
5,553
8,551
2,347
109
Others
11,763
6
12,630
368
867
362
107
Subtotal
1,323,688
53,985
1,348,556
62,950
24,868
8,965
102
Eliminations
(261,498)
8,087
(273,711)
9,432
(12,213)
1,345
-
Total
1,062,190
62,072
1,074,845
72,382
12,655
10,310
101
*Note: Inter-segment sales are included in the above chart
- Sales by Location of Customers
Important trends
The Group's operations may be affected by trends in the global economy, social conditions, laws, tax codes and regulations.
Foreign currency exchange rates
Fluctuations in foreign currency markets may affect the Group's sales of exported products and purchases of imported materials that are denominated in U.S. dollars or euros, as well as its Asian production bases' sales of exported products and purchases of imported materials that are denominated in foreign currencies.
Stock markets
A fall in stock market prices may cause Mitsubishi Electric to record devaluation losses on marketable securities, or cause an increase in retirement benefit obligations in accordance with a decline in the fair value of pension assets.
Supply/demand balance for products and procurement conditions for materials and components
A decline in prices and shipments due to changes in the supply/demand balance, as well as an increase in material prices due to a worsening of material and component procurement conditions, may adversely affect the Group's performance.
Fund raising
An increase in interest rates, the yen interest rate in particular, would increase the Group's interest expenses.
Significant patent matters
Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses.
Environmental legislation or relevant issues
The Group may incur losses or expenses owing to changes in environmental legislation or the occurrence of environmental issues. Such changes in legislation or the occurrence of environmental issues may also impact manufacturing and all corporate activities of the Group.
Flaws or defects in products or services
The Group may incur losses or expenses resulting out of flaws or defects in products or services, and the lowered reputation of the quality of all our products and services may affect the entire Group.
Litigation and other legal proceedings
The Group's operations may be affected by lawsuits or other legal proceedings against Mitsubishi Electric, its subsidiaries and/or equity-method affiliated companies.
Disruptive changes
Disruptive changes in technology, development of products using new technology, timing of production and market introduction may adversely affect the Group's performance.
Business restructuring
Natural disasters
The Group's operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters.
Other significant factors
The Group's operations may be affected by the outbreak of social or political upheaval due to terrorism, war, pandemic by new strains of influenza and other diseases, or other factors.
###
About Mitsubishi Electric Corporation
With over 90 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Embracing the spirit of its corporate statement, Changes for the Better, and its environmental statement, Eco Changes, Mitsubishi Electric endeavors to be a global, leading green company, enriching society with technology. The company recorded consolidated group sales of 4,323.0 billion yen (US$ 36.0 billion*) in the fiscal year ended March 31, 2015. For more information visit: http://www.MitsubishiElectric.com
*At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2015
【Supplementary Materials】
October 29, 2015 Mitsubishi Electric Corporation
F iscal 2016 First Half Consolidated Results
Financial Results
Net Sales by Segment
Operating Income by Segment
Overseas Net Sales by Segment
Foreign Exchange Rates for Recording Net Sales and Impact of Exchange Rate Fluctuations on Net Sales
Capital Expenditures
Depreciation of Tangible Fixed Assets and Other
Research and Development Expenditures
Quarterly Financial Results for Fiscal 2016
Quarterly Net Sales by Segment for Fiscal 2016
Quarterly Operating Income by Segment for Fiscal 2016
Financial Re s ults
FY '15: Apr. 1, 2014 - Mar. 31, 2015
FY '16: Apr. 1, 2015 - Mar. 31, 2016
(Consolidated) (Billions of yen, year-on-year % change)
FY
'15
FY
'16
1st Half
(Actua
l)
Full Yea
(Actual)
r
1st Half
(Actual)
Full Year
(Forecast)
Net sales
1,972.8
(+9)
4,323.0
(+7)
2,063.2
(+5)
4,380.0
(+1)
Operating income
121.3
(+52)
317.6
(+35)
127.0
(+5)
300.0
(-6)
Income before income taxes
145.9
(+75)
322.9
(+30)
133.0
(-9)
315.0
(-2)
Net income attributable to Mitsubishi Electric Corp.
97.8
(+102)
234.6
(+53)
92.9
(-5)
220.0
(-6)
Figures in parentheses in the right column indicate change from the previous corresponding period.
Ne t Sale s by Se gme nt
(Billions of yen, year-on-year % change)
FY
'15
FY
'16
1st Half
(Actual
)
Full Yea
(Actual)
r
1st Half
(Actual)
Full Year
(Forecast
)
Energy and Electric Systems
502.1
(+5)
1,228.9
(+4)
523.7
(+4)
1,250.0
(+2)
Industrial Automation Systems
609.3
(+20)
1,282.7
(+17)
661.5
(+9)
1,300.0
(+1)
Information and Communication Systems
248.5
(+2)
559.5
(+2)
224.0
(-10)
550.0
(-2)
Electronic Devices
106.5
(+18)
238.4
(+22)
123.2
(+16)
210.0
(-12)
Home Appliances
477.1
(+4)
944.8
(0)
511.1
(+7)
990.0
(+5)
Others
351.2
(+14)
740.5
(+10)
338.4
(-4)
730.0
(-1)
Subtotal
2,294.8
(+10)
4,994.9
(+8)
2,382.1
(+4)
5,030.0
(+1)
Eliminations
-322.0
-671.9
-318.8
-650.0
Consolidated total
1,972.8
(+9)
4,323.0
(+7)
2,063.2
(+5)
4,380.0
(+1)
Ope rating Income by Se gme nt
(Billions of yen, year-on-year % change)
FY
'15
FY '16
1st Half
(Actual
)
Full Yea
(Actual
r
)
1st Half
(Actual)
Full Year
(Forecast
)
Energy and Electric Systems
12.5
(-32)
72.4
(-5)
3.7
(-70)
68.0
(-6)
Industrial Automation Systems
66.2
(+70)
145.9
(+49)
83.9
(+27)
152.0
(+4)
Information and Communication Systems
5.3
(+70)
18.9
(+242)
-3.8
( - )
14.0
(-26)
Electronic Devices
7.7
(+72)
30.1
(+200)
16.3
(+110)
19.0
(-37)
Home Appliances
35.2
(+52)
54.2
(+3)
33.1
(-6)
54.0
(-1)
Others
8.2
(+60)
23.7
(+20)
7.3
(-11)
21.0
(-12)
Subtotal
135.3
(+45)
345.5
(+32)
140.7
(+4)
328.0
(-5)
Eliminations and other
-13.9
-27.9
-13.7
-28.0
Consolidated total
121.3
(+52)
317.6
(+35)
127.0
(+5)
300.0
(-6)
Ove rseas Ne t Sale s by Se gme nt
(Billions of yen, year-on-year % change)
FY '15
FY '16
1st Half
(Actual)
Full Year
(Actual)
1st Half
(Actual)
Full Year
(Forecast)
Energy and Electric Systems
199.3 (+12)
461.4 (+19)
221.6 (+11)
Industrial Automation Systems
342.7 (+26)
734.8 (+25)
390.8 (+14)
Information and Communication Systems
6.2 (-16)
17.5 (-47)
12.5 (+101)
Electronic Devices
50.3 (+9)
103.6 (+2)
52.0 (+3)
Home Appliances
243.8 (+12)
474.4 (+6)
273.3 (+12)
Others
9.7 (+28)
18.6 (+7)
7.3 (-25)
Consolidated total
852.2 (+17)
1,810.6 (+15)
957.7 (+12)
Ratio of overseas net sales to total sales
43.2%
41.9%
46.4%
Fo re ign Exchange Rate s for Re cording Ne t Sale s and Impact of Exchange Rate Fluctuations on Ne t Sale s
FY '15
FY '16
1st Half (Actual)
Full Year (Actual)
1st Half (Actual)
2nd Half (Forecast)
Exchange rates for recording
US$
¥103 ¥110
¥122
¥115
net sales
Impact of exchange rate fluctuations on net sales
Euro
Consolidated total
US$ Euro
¥139
About ¥40.0 billion increase in sales
About ¥10.0 billion increase
About ¥9.0 billion increase
¥139
About ¥124.0 billion increase in sales
About ¥50.0 billion increase
About ¥8.0 billion increase
¥135
About ¥83.0 billion increase in sales
About ¥40.0 billion increase
About ¥4.0 billion decrease
¥130
Capital Expe nditure s
(Billions of yen, year-on-year % change)
FY '15
FY '16
Full Year
(Actual)
Full Year (Forecast)
Energy and Electric Systems
52.1 (+44)
42.0 (-19)
Industrial Automation Systems
53.1 (-7)
79.0 (+49)
Information and Communication Systems
24.8 (+5)
29.0 (+17)
Electronic Devices
14.3 (-65)
18.0 (+26)
Home Appliances
43.7 (-9)
43.0 (-2)
Others
5.4 (-25)
9.0 (+67)
Common
13.4 (+40)
15.0 (+12)
Consolidated total
206.8 (-7)
235.0 (+14)
De pre ciation of Tangible Fixe d As s e ts and Othe r
(Billions of yen, year-on-year % change)
FY '15
FY '16
1st Half
(Actual)
Full Year (Actual)
1st Half
(Actual)
Full Year
(Forecast)
Consolidated
68.8 (+12)
158.9 (+16)
69.7 (+1)
160.0 (+1)
Re s e arch and De ve lopme nt Expe nditure s
(Billions of yen, year-on-year % change)
FY '15
FY '16
Full Year
(Actual)
Full Year
(Forecast)
Consolidated
195.3 (+9)
202.0 (+3)
Ratio to net sales
4.5%
4.6%
<Reference>
Quarte rly Financial Re s ults for Fis cal 2016
(Consolidated) (Billions of yen, year-on-year % change)
FY '15
FY '16
1st Quarter (Actual)
2nd Quarter (Actual)
1st Half (Actual)
1st Quarter (Actual)
2nd Quarter (Actual)
1st Half (Actual)
Net sales
910.6 (+9)
1,062.1 (+9)
1,972.8 (+9)
988.4 (+9)
1,074.8 (+1)
2,063.2 (+5)
Operating income
59.3 (+73)
62.0 (+36)
121.3 (+52)
54.6 (-8)
72.3 (+17)
127.0 (+5)
Income before income taxes
67.8 (+59)
78.0 (+91)
145.9 (+75)
67.1 (-1)
65.8 (-16)
133.0 (-9)
Net income attributable to Mitsubishi Electric Corp.
43.0 (+69)
54.8 (+140)
97.8 (+102)
46.3 (+8)
46.6 (-15)
92.9 (-5)
Quarte rly Ne t Sale s by Se gme nt for Fis cal 2016
(Billions of yen, year-on-year % change)
FY '15
FY '16
1st Quarter (Actual)
2nd Quarter (Actual)
1st Half (Actual)
1st Quarter (Actual)
2nd Quarter (Actual)
1st Half (Actual)
Energy and Electric Systems
223.2 (+3)
278.9 (+7)
502.1 (+5)
236.6 (+6)
287.0 (+3)
523.7 (+4)
Industrial Automation Systems
295.3 (+23)
313.9 (+18)
609.3 (+20)
328.3 (+11)
333.1 (+6)
661.5 (+9)
Information and Communication Systems
92.5 (-11)
155.9 (+12)
248.5 (+2)
95.4 (+3)
128.6 (-18)
224.0 (-10)
Electronic Devices
51.2 (+21)
55.2 (+15)
106.5 (+18)
66.1 (+29)
57.0 (+3)
123.2 (+16)
Home Appliances
234.7 (+7)
242.3 (0)
477.1 (+4)
254.0 (+8)
257.0 (+6)
511.1 (+7)
Others
168.0 (+19)
183.1 (+10)
351.2 (+14)
163.1 (-3)
175.2 (-4)
338.4 (-4)
Subtotal
1,065.1 (+11)
1,229.7 (+10)
2,294.8 (+10)
1,143.8 (+7)
1,238.3 (+1)
2,382.1 (+4)
Eliminations
-154.4
-167.5
-322.0
-155.3
-163.4
-318.8
Consolidated total
910.6 (+9)
1,062.1 (+9)
1,972.8 (+9)
988.4 (+9)
1,074.8 (+1)
2,063.2 (+5)
Quarte rly Ope rating Income by Se gme nt for Fis cal 2016
B - A B/A (%)
total (B)
totalNet sales 1,972,838 100.0 2,063,285 100.0 90,447 105
Cost of sales 1,382,107 70.1 1,432,770 69.4 50,663 104
Selling, general and
administrative expenses 468,641 23.7 499,497 24.2 30,856 107
Loss on impairment of
long-lived assets 699 0.0 4,004 0.2 3,305 573
Operating income 121,391 6.2 127,014 6.2 5,623 105
Other income 40,256 2.0 26,573 1.2 (13,683) 66
Interest and dividends 4,270 0.2 4,279 0.2 9 100
Equity in earnings of
affiliated companies 12,154 0.6 13,261 0.6 1,107 109
Other 23,832 1.2 9,033 0.4 (14,799) 38
Other expenses 15,721 0.8 20,529 1.0 4,808 131
Interest 1,963 0.1 1,830 0.1 (133) 93
Other 13,758 0.7 18,699 0.9 4,941 136
Income before income taxes 145,926 7.4 133,058 6.4 (12,868) 91
Income taxes 43,167 2.2 33,925 1.6 (9,242) 79
Net income 102,759 5.2 99,133 4.8 (3,626) 96
Net income attributable to
the noncontrolling interests 4,905 0.2 6,208 0.3 1,303 127
Net income attributable to
Mitsubishi Electric Corp. 97,854 5.0 92,925 4.5 (4,929) 95
Consolidated Comprehensive Income Statement (First Half, Fiscal 2016)(In millions of yen)
FY '15 1st half (A) (Apr. 1, 2014 - Sept. 30, 2014) | FY '16 1st half (B) (Apr. 1, 2015 - Sept. 30, 2015) | B - A | |
Net income | 102,759 | 99,133 | (3,626) |
Other comprehensive income (loss), net of tax | 19,951 | (32,458) | (52,409) |
Foreign currency translation adjustments | |||
Pension liability adjustments | 18,174 | (25,977) | (44,151) |
Unrealized gains (losses) on securities | 23,265 | (30,153) | (53,418) |
Unrealized gains (losses) on derivative instruments | (12) | (17) | (5) |
Total | 61,378 | (88,605) | (149,983) |
Comprehensive income | 164,137 | 10,528 | (153,609) |
Comprehensive income attributable to the noncontrolling interests | 7,348 | 2,236 | (5,112) |
Comprehensive income attributable to Mitsubishi Electric Corp. | 156,789 | 8,292 | (148,497) |
(In millions of yen)
FY '15 Q2
(Jul. 1, 2014 -
Sept. 30, 2014)
(A) % of
FY '16 Q2 (Jul. 1, 2015 - Sept. 30, 2015) % ofB - A B/A (%)
total (B)
totalNet sales 1,062,190 100.0 1,074,845 100.0 12,655 101
Cost of sales 754,463 71.0 741,722 69.0 (12,741) 98
Selling, general and
administrative expenses 244,956 23.1 256,737 23.9 11,781 105
Loss on impairment of
long-lived assets 699 0.1 4,004 0.4 3,305 573
Operating income 62,072 5.8 72,382 6.7 10,310 117
Other income 23,328 2.2 13,393 1.3 (9,935) 57
Interest and dividends 1,368 0.1 1,245 0.1 (123) 91
Equity in earnings of
affiliated companies 8,559 0.8 8,212 0.8 (347) 96
Other 13,401 1.3 3,936 0.4 (9,465) 29
Other expenses 7,333 0.7 19,894 1.9 12,561 271
Interest 1,010 0.1 904 0.1 (106) 90
Other 6,323 0.6 18,990 1.8 12,667 300
Income before income taxes 78,067 7.3 65,881 6.1 (12,186) 84
Income taxes 20,912 1.9 16,427 1.5 (4,485) 79
Net income 57,155 5.4 49,454 4.6 (7,701) 87
Net income attributable to
the noncontrolling interests 2,322 0.2 2,846 0.3 524 123
Net income attributable to
Mitsubishi Electric Corp. 54,833 5.2 46,608 4.3 (8,225) 85
Consolidated Comprehensive Income Statement (Second Quarter, Fiscal 2016)(In millions of yen)
FY '15 Q2 (A) (Jul. 1, 2014 - Sept. 30, 2014) | FY '16 Q2 (B) (Jul. 1, 2015 - Sept. 30, 2015) | B - A | |
Net income | 57,155 | 49,454 | (7,701) |
Other comprehensive income (loss), net of tax | 32,087 | (37,989) | (70,076) |
Foreign currency translation adjustments | |||
Pension liability adjustments | 16,936 | (36,849) | (53,785) |
Unrealized gains (losses) on securities | 17,127 | (36,960) | (54,087) |
Unrealized gains (losses) on derivative instruments | 36 | (54) | (90) |
Total | 66,186 | (111,852) | (178,038) |
Comprehensive income (loss) | 123,341 | (62,398) | (185,739) |
Comprehensive income (loss) attributable to the noncontrolling interests | 5,589 | (1,668) | (7,257) |
Comprehensive income (loss) attributable to Mitsubishi Electric Corp. | 117,752 | (60,730) | (178,482) |
FY '15 (A)
(In millions of yen)
FY ' 16 1st half (B)(ended Mar.
31, 2015)
(ended Sept. 30, 2015)B - A
(Assets) Current assets | 2,633,445 | 2,471,761 | (161,684) |
Cash and cash equivalents | 568,517 | 573,445 | 4,928 |
Trade receivables | 1,048,542 | 871,041 | (177,501) |
Inventories | 705,420 | 717,260 | 11,840 |
Prepaid expenses and other current assets | 310,966 | 310,015 | (951) |
Long-term trade receivables | 5,633 | 4,322 | (1,311) |
Investments | 595,828 | 549,676 | (46,152) |
Net property, plant and equipment | 706,475 | 703,575 | (2,900) |
Other assets | 118,070 | 134,562 | 16,492 |
Total assets | 4,059,451 | 3,863,896 | (195,555) |
(Liabilities) | |||
Current liabilities | 1,612,582 | 1,419,405 | (193,177) |
Bank loans and current portion of long-term debt | 164,402 | 131,065 | (33,337) |
Trade payables | 807,289 | 690,128 | (117,161) |
Other current liabilities | 640,891 | 598,212 | (42,679) |
Long-term debt | 217,592 | 226,429 | 8,837 |
Retirement and severance benefits | 182,282 | 199,164 | 16,882 |
Other fixed liabilities | 116,828 | 120,844 | 4,016 |
Total liabilities | 2,129,284 | 1,965,842 | (163,442) |
(Equity) | |||
Mitsubishi Electric Corp. shareholders' equity | 1,842,203 | 1,811,827 | (30,376) |
Common stock | 175,820 | 175,820 | - |
Capital surplus | 211,155 | 211,155 | - |
Retained earnings | 1,331,496 | 1,385,779 | 54,283 |
Accumulated other comprehensive income (loss) | 124,064 | 39,431 | (84,633) |
Treasury stock at cost | (332) | (358) | (26) |
Noncontrolling interests | 87,964 | 86,227 | (1,737) |
Total equity | 1,930,167 | 1,898,054 | (32,113) |
Total liabilities and equity | 4,059,451 | 3,863,896 | (195,555) |
Balance of Debt | 381,994 | 357,494 | (24,500) |
Accumulated other comprehensive income (loss): | |||
Foreign currency translation adjustments | 102,959 | 74,575 | (28,384) |
Pension liability adjustments | (98,108) | (124,085) | (25,977) |
Unrealized gains on securities | 119,252 | 89,005 | (30,247) |
Unrealized gains (losses) on derivative instruments | (39) | (64) | (25) |
(In millions of yen)
FY '15 1st half (Apr. 1, 2014 - Sept. 30, 2014) (A) | FY '16 1st half (Apr. 1, 2015 - Sept. 30, 2015) (B) | B - A | |||
I | 1 | Cash flows from operating activities Net income | 102,759 | 99,133 | (3,626) |
2 | Adjustments to reconcile net income to net cash | 68,891 | 69,774 | 883 | |
provided by operating activities | |||||
(1) Depreciation of tangible fixed assets and other | |||||
(2) Decrease in trade receivables | 112,729 | 173,200 | 60,471 | ||
(3) Decrease (increase) in inventories | (97,130) | (19,907) | 77,223 | ||
(4) Increase (decrease) in trade payables | (27,453) | (98,053) | (70,600) | ||
(5) Other, net | 65,496 | (44,274) | (109,770) | ||
Net cash provided by operating activities | 225,292 | 179,873 | (45,419) | ||
II | 1 | Cash flows from investing activities Capital expenditure | (89,943) | (86,019) | 3,924 |
2 | Proceeds from sale of property, plant and equipment | 4,842 | 1,177 | (3,665) | |
3 | Purchase of short-term investments and investment securities (net of cash acquired) | (1,253) | (4,139) | (2,886) | |
4 | Proceeds from sale of short-term investments and investment securities | 6,326 | 2,240 | (4,086) | |
5 | Other, net | (8,172) | (8,269) | (97) | |
Net cash used in investing activities | (88,200) | (95,010) | (6,810) | ||
I+II | Free cash flow | 137,092 | 84,863 | (52,229) | |
III 1 | Cash flows from financing activities Proceeds from long-term debt | 50,243 | 30,100 | (20,143) | |
2 | Repayment of long-term debt | (51,676) | (53,818) | (2,142) | |
3 | Increase (decrease) in bank loans, net | 6,320 | (2,040) | (8,360) | |
4 | Dividends paid | (23,615) | (38,642) | (15,027) | |
5 | Purchase of treasury stock | (24) | (27) | (3) | |
6 | Reissuance of treasury stock | 0 | 0 | 0 | |
7 | Other, net | (2,801) | (5,018) | (2,217) | |
Net cash provided by (used in) financing activities | (21,553) | (69,445) | (47,892) | ||
IV | Effect of exchange rate changes on cash and cash equivalents | 8,250 | (10,490) | (18,740) | |
V | Net increase in cash and cash equivalents | 123,789 | 4,928 | (118,861) | |
VI | Cash and cash equivalents at beginning of period | 418,049 | 568,517 | 150,468 | |
VII | Cash and cash equivalents at end of period | 541,838 | 573,445 | 31,607 |
(In millions of yen)
Location of Customers | FY '15 1st half (Apr. 1, 2014 - Sept. 30, 2014) | FY '16 1st half (Apr. 1, 2015 - Sept. 30, 2015) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 1,120,549 | 56.8 | 1,105,521 | 53.6 | (15,028) | 99 | ||
North America | 182,907 | 9.3 | 222,936 | 10.8 | 40,029 | 122 | ||
Asia (excluding Japan) | 447,737 | 22.7 | 494,960 | 24.0 | 47,223 | 111 | ||
Europe | 181,731 | 9.2 | 194,096 | 9.4 | 12,365 | 107 | ||
Others | 39,914 | 2.0 | 45,772 | 2.2 | 5,858 | 115 | ||
Total overseas sales | 852,289 | 43.2 | 957,764 | 46.4 | 105,475 | 112 | ||
Consolidated total | 1,972,838 | 100.0 | 2,063,285 | 100.0 | 90,447 | 105 |
(In millions of yen)
Location of Customers | FY '15 Q2 (Jul. 1, 2014 - Sept. 30, 2014) | FY '16 Q2 (Jul. 1, 2015 - Sept. 30, 2015) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 636,420 | 59.9 | 606,016 | 56.4 | (30,404) | 95 | ||
North America | 91,843 | 8.6 | 110,120 | 10.2 | 18,277 | 120 | ||
Asia (excluding Japan) | 224,916 | 21.2 | 238,356 | 22.2 | 13,440 | 106 | ||
Europe | 87,945 | 8.3 | 96,228 | 9.0 | 8,283 | 109 | ||
Others | 21,066 | 2.0 | 24,125 | 2.2 | 3,059 | 115 | ||
Total overseas sales | 425,770 | 40.1 | 468,829 | 43.6 | 43,059 | 110 | ||
Consolidated total | 1,062,190 | 100.0 | 1,074,845 | 100.0 | 12,655 | 101 |
Cautionary Statement
The Mitsubishi Electric Group (hereafter 'the Group') is involved in development, manufacture and sales in a wide range of fields including Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances, and these operations extend globally, not only inside Japan, but also in North America, Europe, Asia and other regions. While the statements herein are based on certain assumptions and premises that the Company trusts and considers to be reasonable under the circumstances on the date of announcement, actual operating results are subject to change due to any of the factors as contemplated hereunder and/or any additional factor unforeseeable as of the date of this announcement. Such factors materially affecting the expectations expressed herein shall include but are not limited to the following:
The Group may record losses due to restructuring measures. (12)Information security
The performance of the Group may be affected by computer virus infections, unauthorized access and other unpredictable incidents that lead to the loss or leakage of personal information held by the Group or confidential information regarding the Group's business such as its technology, sales and other operations.
<Reference>
(Billions of yen, year-on-year % change)
FY '15 | FY '16 | |||||
1st Quarter (Actual) | 2nd Quarter (Actual) | 1st Half (Actual) | 1st Quarter (Actual) | 2nd Quarter (Actual) | 1st Half (Actual) | |
Energy and Electric Systems | 7.8 (-47) | 4.6 (+33) | 12.5 (-32) | -6.6 (-) | 10.4 (+123) | 3.7 (-70) |
Industrial Automation Systems | 35.1 (+133) | 31.1 (+30) | 66.2 (+70) | 42.8 (+22) | 41.0 (+32) | 83.9 (+27) |
Information and Communication Systems | -1.7 (-) | 7.1 (+74) | 5.3 (+70) | -1.7 (-) | -2.0 (-) | -3.8 (-) |
Electronic Devices | 3.8 (+228) | 3.9 (+17) | 7.7 (+72) | 12.3 (220) | 4.0 (+3) | 16.3 (+110) |
Home Appliances | 21.2 (+74) | 13.9 (+28) | 35.2 (+52) | 16.2 (-24) | 16.9 (+21) | 33.1 (-6) |
Others | 1.7 (+111) | 6.5 (+51) | 8.2 (+60) | 0.9 (-47) | 6.4 (-1) | 7.3 (-11) |
Subtotal | 68.0 (+58) | 67.3 (+34) | 135.3 (+45) | 63.9 (-6) | 76.8 (+14) | 140.7 (+4) |
Eliminations and other | -8.7 | -5.2 | -13.9 | -9.2 | -4.4 | -13.7 |
Consolidated total | 59.3 (+73) | 62.0 (+36) | 121.3 (+52) | 54.6 (-8) | 72.3 (+17) | 127.0 (+5) |
distributed by |