Mitsubishi Electric : Announces Consolidated Financial Results for the First Quarter of Fiscal 2017（PDF：173KB）

MITSUBISHI ELECTRIC CORPORATION

PUBLIC RELATIONS DIVISION

7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo, 100-8310 Japan

FOR IMMEDIATE RELEASE No. 3040

Investor Relations Inquiries Media Inquiries

Investor Relations Group, Corporate Finance Division Public Relations Division Mitsubishi Electric Corporation Mitsubishi Electric Corporation

Cad.Irg@rk.MitsubishiElectric.co.jp prd.gnews@nk.MitsubishiElectric.co.jp www.MitsubishiElectric.com/news/

TOKYO, July 28, 2016 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated financial results for the first quarter ended June 30, 2016, of the current fiscal year ending March 31, 2017 (fiscal 2017).

Consolidated Financial Results

Mitsubishi Electric Corp.:

The business environment in the first quarter (from April through June 2016) of the fiscal year 2017 experienced a gradual slowdown continuing in China and other East Asian markets and weakness in personal consumption in Japan, while the economy showed strong signs of expansion in the U.S., and a gradual trend of economic recovery continued in Europe. In addition, the yen became stronger against foreign currencies compared to the same period of the previous year, becoming radically stronger with the impact of the U.K.'s withdrawal from the European Union at the end of June.

Under these circumstances, consolidated net sales in the first quarter decreased by 6% compared to the same period of the previous fiscal year to 927.0 billion yen, owing to such factors as decreased sales in the Industrial Automation Systems, Information and Communication Systems and Electronic Devices. Consolidated operating income increased by 9% compared to the same period of the previous fiscal year to

59.7 billion yen, due to increased profits in the Energy and Electric Systems and Home Appliances segments.

Consolidated Financial Results by Business Segment

Energy and Electric Systems

The social infrastructure systems business saw a decrease in orders compared to the same period of the previous fiscal year due primarily to a decrease in the transportation systems business inside and outside Japan. Sales, meanwhile, increased compared to the same period of the previous fiscal year due mainly to an increase in the power systems business in Japan and in the transportation systems business outside Japan.

The building systems business remained substantially unchanged in orders, while sales decreased compared to the same period of the previous fiscal year due primarily to negative influences caused by the stronger yen.

As a result, total sales for this segment increased by 1% from the same period of the previous fiscal year. Operating income increased by 10.5 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios.

Industrial Automation Systems

The factory automation systems business saw decreases in both orders and sales from the same period of the previous fiscal year due mainly to a slowdown in capital expenditures outside Japan as well as low capital expenditures in Japan in the manufacturing industry, along with negative influences caused by the 2016 Kumamoto earthquakes and the stronger yen.

The automotive equipment business saw decreases in both orders and sales from the same period of the previous fiscal year due primarily to negative influences caused by the stronger yen, despite growth in the car sales markets in Europe and other regions.

As a result, total sales for this segment decreased by 8% from the same period of the previous fiscal year. Operating income decreased by 10.4 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.

Information and Communication Systems

The telecommunications systems business saw decreases in both orders and sales compared to the same period of the previous fiscal year due primarily to the sellout of an affiliated company in the beginning of this fiscal year and a decrease in communications infrastructure equipment.

The information systems and service business saw a decrease in sales compared to the same period of the previous fiscal year, owing to a decrease in the IT infrastructure service business.

The electronic systems business saw decreases in both orders and sales compared to the same period of the previous fiscal year mainly due to a decrease in the defense systems business.

As a result, total sales for this segment decreased by 23% compared to the same period of the previous fiscal year. Operating income declined by 1.4 billion yen compared to the same period of the previous fiscal year due primarily to a decrease in sales.

Electronic Devices

The electronic devices business saw an increase in orders from the same period of the previous fiscal year due to an increase in optical communication devices, while sales decreased compared to the same period of the previous fiscal year due to a decrease in demand for power modules, along with negative influences caused by the 2016 Kumamoto earthquakes and the stronger yen.

As a result, total sales for this segment decreased by 41% compared to the same period of the previous fiscal year. Operating income decreased by 11.3 billion yen compared to the same period of the previous fiscal year due primarily to a decrease in sales.

The home appliances business saw an increase in sales of 3% from the same period of the previous fiscal year due to an increase in sales of residential and industrial air conditioners in Japan as well as air conditioners in Europe, despite negative influences caused by the stronger yen.

Operating income increased by 15.5 billion yen compared to the same period of the previous fiscal year largely due to an increase in sales.

Sales decreased by 4% compared to the same period of the previous fiscal year mainly due to a decrease in sales at affiliated companies involved in materials procurement.

Operating income increased by 1.7 billion yen compared to the same period of the previous fiscal year due primarily to cost reductions.

Financial Standing

An Analysis on the Status of Assets, Liabilities, Equity and Cash Flow on a Consolidated Basis

The Company's total assets as of the end of this fiscal quarter decreased from the end of the previous fiscal year by 212.6 billion yen to 3,847.2 billion yen. The change in the balance of total assets is mainly attributable to increases in the balances of cash and cash equivalents by 20.9 billion yen, and of inventories by 35.4 billion yen as a result of work-in-process as recorded in commensurate with progress in job orders under pertinent contracts, while trade receivables decreased by 244.2 billion yen primarily as a result of credit collection.

Total liabilities decreased from the end of the previous fiscal year by 107.2 billion yen to 2,015.1 billion yen. The outstanding balances of debts and corporate bonds decreased by 0.5 billion yen from the end of the previous fiscal year to 403.4 billion yen, resulting in a rise in the ratio of interest bearing debt to total assets to 10.5%, representing a 0.5 point increase compared to the end of the previous fiscal year. Retirement and severance benefits increased by 21.9 billion yen, mainly resulting from a decrease in pension assets following a fall in stock prices, while the outstanding balance of trade payables decreased by 81.8 billion yen and other current liabilities decreased by 40.7 billion yen.

Mitsubishi Electric Corporation shareholders' equity decreased by 100.2 billion yen compared to the end of the previous fiscal year to 1,738.5 billion yen. Shareholders' equity ratio was recorded at 45.2%, representing a 0.1 point decrease compared to the end of the previous fiscal year. The changes referred to above primarily resulted from dividend payment of 38.6 billion yen along with a decrease in accumulated other comprehensive income by 103.5 billion yen caused by such factors as the stronger yen and falling stock prices, despite an increase from recording a net income attributable to Mitsubishi Electric Corporation of 42.9 billion yen.

Cash flows from operating activities for this quarter increased by 9.2 billion yen compared to the same period of the previous fiscal year to 109.2 billion yen (cash in). Cash flows from investing activities decreased by 17.2 billion yen compared to the same period of the previous fiscal year to 22.6 billion yen (cash out) due to increases in proceeds from sale of short-term investments and investment securities and other factors. As a result, free cash flow was 86.5 billion yen (cash in). Cash flows from financing activities were 41.1 billion yen (cash out) mainly due to dividend payment.

Forecast for Fiscal 2017

With negative influences caused by the yen becoming stronger against currencies mainly in Europe and in Asia, Mitsubishi Electric's business performance for the current fiscal year is expected to fall below its previous forecast mainly in the Industrial Automation Systems and Energy and Electric Systems segments. Therefore, the consolidated earnings forecast for the first half of fiscal 2017, ending September 30, 2016, and for fiscal 2017, ending March 31, 2017, have been revised from the announcement on April 28, 2016 as stated below.

First Half of Fiscal 2017 Consolidated Earnings Forecast

Fiscal 2017 Consolidated Earnings Forecast

Note: The results forecast above is based on assumptions deemed reasonable by the Company at the present time, and actual results may differ significantly from forecasts. Please refer to the cautionary statement at the end.

(In billions of yen except where noted)

Notes:

1. Consolidated financial charts made in accordance with U.S. GAAP.

2. The Company has 218 consolidated subsidiaries.

   Consolidated Profit and Loss Statement

   (In millions of yen)

   FY '16 Q1

   (Apr. 1, 2015 -

   Jun. 30, 2015)

3. % of

4. FY '17 Q1 (Apr. 1, 2016 - Jun. 30, 2016) % of

   B/A

   total (B)

   total B -A

   (%)

   Net sales 988,440 100.0 927,077 100.0 (61,363) 94

   Cost of sales 691,048 69.9 627,503 67.7 (63,545) 91

   Selling, general and

   administrative expenses 242,760 24.6 239,870 25.9 (2,890) 99

   Operating income 54,632 5.5 59,704 6.4 5,072 109

   Other income 17,215 1.8 26,540 2.9 9,325 154

   Interest and Dividends 3,034 0.3 2,861 0.3 (173) 94

   Equity in earnings of

   affiliated companies 5,049 0.5 3,587 0.4 (1,462) 71

   Other 9,132 1.0 20,092 2.2 10,960 220

   Other expenses 4,670 0.5 25,235 2.7 20,565 540

   Interest 926 0.1 759 0.1 (167) 82

   Other 3,744 0.4 24,476 2.6 20,732 654

   Income before income taxes 67,177 6.8 61,009 6.6 (6,168) 91

   Income taxes 17,498 1.8 14,760 1.6 (2,738) 84

   Net income 49,679 5.0 46,249 5.0 (3,430) 93

   Net income attributable to

   the noncontrolling interests 3,362 0.3 3,335 0.4 (27) 99

   Net income attributable to

   Mitsubishi Electric Corp. 46,317 4.7 42,914 4.6 (3,403) 93

   Consolidated Comprehensive Income Statement

   (In millions of yen)

   FY '16 Q1 (A) (Apr. 1, 2015 - Jun. 30, 2015)	FY '17 Q1 (B) (Apr. 1, 2016 - Jun. 30, 2016)	B - A
   Net income	49,679	46,249	(3,430)
   Other comprehensive income (loss), net of tax	5,531	(67,544)	(73,075)
   Foreign currency translation adjustments
   Pension liability adjustments	10,872	(14,840)	(25,712)
   Unrealized gains (losses) on securities	6,807	(27,967)	(34,774)
   Unrealized gains (losses) on derivative instruments	37	(34)	(71)
   Total	23,247	(110,385)	(133,632)
   Comprehensive income (loss)	72,926	(64,136)	(137,062)
   Comprehensive income (loss) attributable to the noncontrolling interests	3,904	(3,461)	(7,365)
   Comprehensive income (loss) attributable to Mitsubishi Electric Corp.	69,022	(60,675)	(129,697)

   Consolidated Balance Sheet	(In millions of yen)
   FY '16 (A) (ended Mar. 31, 2016)	FY '17 Q1 (B) (ended Jun. B - A 30, 2016)
   (Assets) Current assets 2,551,863	2,392,168 (159,695)
   Cash and cash equivalents 574,170	595,138 20,968
   Trade receivables 1,035,168	791,535 (243,633)
   Inventories 644,127	679,555 35,428
   Prepaid expenses and other current assets 298,398	325,940 27,542
   Long-term trade receivables 4,661	4,069 (592)
   Investments 537,706	486,280 (51,426)
   Net property, plant and equipment 712,599	705,091 (7,508)
   Other assets 253,112	259,689 6,577
   Total assets 4,059,941	3,847,297 (212,644)
   (Liabilities) Current liabilities 1,507,943	1,386,252 (121,691)
   Bank loans and current portion of long-term debt 116,532	117,404 872
   Trade payables 773,714	691,854 (81,860)
   Other current liabilities 617,697	576,994 (40,703)
   Long-term debt 287,507	286,085 (1,422)
   Retirement and severance benefits 229,750	251,655 21,905
   Other fixed liabilities 97,238	91,190 (6,048)
   Total liabilities 2,122,438	2,015,182 (107,256)
   (Equity) Mitsubishi Electric Corp. shareholders' equity 1,838,773	1,738,541 (100,232)
   Common stock 175,820	175,820 -
   Capital surplus 211,999	211,931 (68)
   Retained earnings 1,502,027	1,506,300 4,273
   Accumulated other comprehensive income (loss) (50,699)	(154,288) (103,589)
   Treasury stock at cost (374)	(1,222) (848)
   Noncontrolling interests 98,730	93,574 (5,156)
   Total equity 1,937,503	1,832,115 (105,388)
   Total liabilities and equity 4,059,941	3,847,297 (212,644)
   Balance of Debt 404,039	403,489 (550)
   Accumulated other comprehensive income (loss):
   Foreign currency translation adjustments 39,847	(20,943) (60,790)
   Pension liability adjustments (184,231)	(199,069) (14,838)
   Unrealized gains on securities 93,742	65,816 (27,926)
   Unrealized gains (losses) on derivative (57) instruments	(92) (35)

   Consolidated Cash Flow Statement

   (In millions of yen)

   FY '16 Q1 (Apr. 1, 2015 - Jun. 30, 2015) (A)	FY '17 Q1 (Apr. 1, 2016 - Jun. 30, 2016) (B)	B - A
   I	1	Cash flows from operating activities Net income	49,679	46,249	(3,430)
   2		Adjustments to reconcile net income to net cash	31,754	29,083	(2,671)
   provided by operating activities
   (1) Depreciation of tangible fixed assets and other
   (2) Decrease in trade receivables	200,224	202,504	2,280
   (3) Decrease (increase) in inventories	(53,769)	(64,909)	(11,140)
   (4) Increase (decrease) in trade payables	(84,802)	(66,841)	17,961
   (5) Other, net	(43,167)	(36,868)	6,299
   Net cash provided by operating activities			99,919	109,218	9,299
   II	1	Cash flows from investing activities Capital expenditure	(39,169)	(34,291)	4,878
   2		Proceeds from sale of property, plant and equipment	707	1,413	706
   3		Purchase of short-term investments and investment securities (net of cash acquired)	(1,006)	(1,010)	(4)
   4		Proceeds from sale of short-term investments and investment securities (net of cash disposed)	1,281	15,315	14,034
   5		Other, net	(1,779)	(4,110)	(2,331)
   Net cash used in investing activities			(39,966)	(22,683)	17,283
   I + II		Free cash flow	59,953	86,535	26,582
   III 1		Cash flows from financing activities Proceeds from long-term debt	-	45	45
   2		Repayment of long-term debt	(2,818)	(3,049)	(231)
   3		Increase (decrease) in bank loans, net	(1,421)	2,570	3,991
   4		Dividends paid	(38,642)	(38,642)	0
   5		Purchase of treasury stock	(16)	(1,097)	(1,081)
   6		Other, net	(779)	(954)	(175)
   Net cash provided by (used in) financing activities			(43,676)	(41,127)	2,549
   IV		Effect of exchange rate changes on cash and cash equivalents	2,694	(24,440)	(27,134)
   V		Net increase in cash and cash equivalents	18,971	20,968	1,997
   VI		Cash and cash equivalents at beginning of period	568,517	574,170	5,653
   VII		Cash and cash equivalents at end of period	587,488	595,138	7,650

   Consolidated Segment Information

5. Sales and Operating Income by Business Segment

   (In millions of yen)

   Business Segment	FY '16 Q1 (Apr. 1, 2015 - Jun. 30, 2015)		FY '17 Q1 (Apr. 1, 2016 - Jun. 30, 2016)		C - A	D - B	C/A (%)
   	Sales (A)	Operating income (loss) (B)	Sales (C)	Operating income (loss) (D)
   Energy and Electric Systems	236,681	(6,666)	238,051	3,926	1,370	10,592	101
   Industrial Automation Systems	328,350	42,867	302,227	32,421	(26,123)	(10,446)	92
   Information and Communication Systems	95,409	(1,755)	73,525	(3,179)	(21,884)	(1,424)	77
   Electronic Devices	66,117	12,332	39,080	959	(27,037)	(11,373)	59
   Home Appliances	254,092	16,244	261,925	31,786	7,833	15,542	103
   Others	163,190	903	156,390	2,643	(6,800)	1,740	96
   Subtotal	1,143,839	63,925	1,071,198	68,556	(72,641)	4,631	94
   Eliminations and other	(155,399)	(9,293)	(144,121)	(8,852)	11,278	441	-
   Total	988,440	54,632	927,077	59,704	(61,363)	5,072	94

   *Notes: Inter-segment sales are included in the above chart.

6. Sales and Operating Income by Location

   (In millions of yen)

   Location	FY '16 Q1 (Apr. 1, 2015 - Jun. 30, 2015)		FY '17 Q1 (Apr. 1, 2016 - Jun. 30, 2016)		C - A	D - B	C/A (%)
   	Sales (A)	Operating income (B)	Sales (C)	Operating income (D)
   Japan	758,371	26,815	694,715	17,946	(63,656)	(8,869)	92
   North America	112,155	1,076	102,125	3,613	(10,030)	2,537	91
   Asia (excluding Japan)	289,551	29,018	261,776	29,394	(27,775)	376	90
   Europe	104,298	4,202	110,693	4,151	6,395	(51)	106
   Others	12,276	207	11,007	443	(1,269)	236	90
   Subtotal	1,276,651	61,318	1,180,316	55,547	(96,335)	(5,771)	92
   Eliminations	(288,211)	(6,686)	(253,239)	4,157	34,972	10,843	-
   Total	988,440	54,632	927,077	59,704	(61,363)	5,072	94

   *Notes: Inter-segment sales are included in the above chart.

7. Sales by Location of Customers

(In millions of yen)

Location of Customers			FY '16 Q1 (Apr. 1, 2015 - Jun. 30, 2015)		FY '17 Q1 (Apr. 1, 2016 - Jun. 30, 2016)		B - A	B/A (%)
			Sales (A)	% of total net sales	Sales (B)	% of total net sales
Japan		499,505	50.5	471,588	50.9	(27,917)	94
North America	112,816	11.4	101,529	10.9	(11,287)	90
Asia (excluding Japan)	256,604	26.0	230,218	24.8	(26,386)	90
Europe	97,868	9.9	103,496	11.2	5,628	106
Others	21,647	2.2	20,246	2.2	(1,401)	94
Total overseas sales		488,935	49.5	455,489	49.1	(33,446)	93
Consolidated total			988,440	100.0	927,077	100.0	(61,363)	94

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:

1. Important trends

   The Group's operations may be affected by trends in the global economy, social conditions, laws, tax codes and regulations.

2. 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.

3. 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.

4. 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.

5. Fund raising

   An increase in interest rates, the yen interest rate in particular, would increase the Group's interest expenses.

6. Significant patent matters

   Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses.

7. 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.

8. 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 its products and services may affect the entire Group.

9. 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.

10. 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.

11. Business restructuring

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.

1. 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.

2. 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 4,394.3 billion yen (US$ 38.8 billion*) in the fiscal year ended March 31, 2016. For more information visit: www.MitsubishiElectric.com

   *At an exchange rate of 113 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2016

   【Supplementary Materials】

   July 28, 2016

   Mitsubishi Electric Corporation

   F iscal 2017 F irst Quarter Consolidated Results

3. Financial Results

4. Net Sales by Segment

5. Operating Income by Segment

6. Overseas Net Sales by Segment

7. Foreign Exchange Rates for Recording Net Sales and Impact of Exchange Rate Fluctuations on Net Sales

8. FY '16: Apr. 1, 2015 - Mar. 31, 2016

   FY '17: Apr. 1, 2016 - Mar. 31, 2017

9. Financial Re s ults

   (Consolidated) (Billions of yen, year-on-year % change)

   FY '16			FY '17
   Full Year (Actual)	Full Year (Forecast)
   		Q1 (Actual)	1st Half (Actual)	Q1 (Actual)	1st Half (Forecast)
   Net sales	988.4 (+9)	2,063.2 (+5)	4,394.3 (+2)	927.0 (-6)	1,960.0 (-5)	4,180.0 (-5)
   Operating income	54.6 (-8)	127.0 (+5)	301.1 (-5)	59.7 (+9)	90.0 (-29)	235.0 (-22)
   Income before income taxes	67.1 (-1)	133.0 (-9)	318.4 (-1)	61.0 (-9)	100.0 (-25)	255.0 (-20)
   Net income attributable to Mitsubishi Electric Corp.	46.3 (+8)	92.9 (-5)	228.4 (-3)	42.9 (-7)	70.0 (-25)	175.0 (-23)

   Figures in parentheses in the right column indicate change from the previous corresponding period.

10. Ne t Sale s by Se gme nt

    (Billions of yen, year-on-year % change)

    FY '16			FY '17
    Full Year (Actual)	Full Year (Forecast)
    		Q1 (Actual)	1st Half (Actual)	Q1 (Actual)	1st Half (Forecast)
    Energy and Electric Systems	236.6 (+6)	523.7 (+4)	1,264.6 (+3)	238.0 (+1)	520.0 (-1)	1,210.0 (-4)
    Industrial Automation Systems	328.3 (+11)	661.5 (+9)	1,321.9 (+3)	302.2 (-8)	610.0 (-8)	1,250.0 (-5)
    Information and Communication Systems	95.4 (+3)	224.0 (-10)	561.1 (0)	73.5(-23)	200.0 (-11)	460.0 (-18)
    Electronic Devices	66.1(+29)	123.2 (+16)	211.5 (-11)	39.0(-41)	80.0 (-35)	170.0 (-20)
    Home Appliances	254.0 (+8)	511.1 (+7)	982.0 (+4)	261.9 (+3)	530.0 (+4)	1,020.0 (+4)
    Others	163.1 (-3)	338.4 (-4)	707.7 (-4)	156.3 (-4)	320.0 (-5)	690.0 (-3)
    Subtotal	1,143.8 (+7)	2,382.1 (+4)	5,049.0 (+1)	1,071.1 (-6)	2,260.0 (-5)	4,800.0 (-5)
    Eliminations	-155.3	-318.8	-654.6	-144.1	-300.0	-620.0
    Consolidated total	988.4 (+9)	2,063.2 (+5)	4,394.3 (+2)	927.0 (-6)	1,960.0 (-5)	4,180.0 (-5)

11. Ope rating Income by Se gme nt

    (Billions of yen, year-on-year % change)

    FY '16			FY '17
    Full Year (Actual)	Full Year (Forecast)
    		Q1 (Actual)	1st Half (Actual)	Q1 (Actual)	1st Half (Forecast)
    Energy and Electric Systems	-6.6 ( - )	3.7 (-70)	50.3 (-31)	3.9 ( - )	5.0 (+33)	49.0 (-3)
    Industrial Automation Systems	42.8(+22)	83.9 (+27)	159.1 (+9)	32.4(-24)	58.0 (-31)	124.0 (-22)
    Information and Communication Systems	-1.7 ( - )	-3.8 ( - )	14.9 (-21)	-3.1 ( - )	-4.0 ( - )	8.0 (-47)
    Electronic Devices	12.3(+220)	16.3 (+110)	16.8 (-44)	0.9(-92)	0.0 ( - )	3.0 (-82)
    Home Appliances	16.2(-24)	33.1 (-6)	63.8 (+18)	31.7(+96)	40.0 (+21)	63.0 (-1)
    Others	0.9 (-47)	7.3 (-11)	23.6 (-1)	2.6 (+193)	6.0 (-19)	18.0 (-24)
    Subtotal	63.9 (-6)	140.7 (+4)	328.8 (-5)	68.5 (+7)	105.0 (-25)	265.0 (-19)
    Eliminations and other	-9.2	-13.7	-27.6	-8.8	-15.0	-30.0
    Consolidated total	54.6 (-8)	127.0 (+5)	301.1 (-5)	59.7 (+9)	90.0 (-29)	235.0 (-22)

12. Ove rs e as Ne t Sale s by Se gme nt

    (Billions of yen, year-on-year % change)

    FY '16			FY '17
    Full Year (Actual)	Q1 (Actual)
    		Q1 (Actual)	1st Half (Actual)
    Energy and Electric Systems	107.0 (+13)	221.6 (+11)	458.9 (-1)	98.3 (-8)
    Industrial Automation Systems	201.1 (+19)	390.8 (+14)	755.5 (+3)	178.2 (-11)
    Information and Communication Systems	4.0(+134)	12.5 (+101)	46.3(+164)	2.7(-32)
    Electronic Devices	27.1(+10)	52.0 (+3)	98.5 (-5)	22.1(-18)
    Home Appliances	145.9 (+12)	273.3 (+12)	499.6 (+5)	150.5 (+3)
    Others	3.6 (-28)	7.3 (-25)	14.1 (-24)	3.4 (-6)
    Consolidated total	488.9 (+15)	957.7 (+12)	1,873.1 (+3)	455.4 (-7)
    Ratio of overseas net sales to total sales	49.5%	46.4%	42.6%	49.1%

13. Fore ign Exchange Rate s for Re cording Ne t Sale s and Impact of Exchange Rate Fluctuations on Ne t Sale s

FY '16			FY '17
Full Year (Actual)	Q1 (Actual)	Q2 or after (Forecast)
			Q1 (Actual)	1st Half (Actual)
Exchange rates for recording net sales	US$		¥121	¥122	¥121	¥111	¥105
	Euro		¥133	¥135	¥133	¥125	¥115
Impact of exchange rate fluctuations on net sales	Consolidated total		About ￥54.0 billion increase	About ￥83.0 billion increase	About ￥60.0 billion increase	About ￥59.0 billion decrease
	US$	About ￥26.0 billion increase	About ￥40.0 billion increase	About ￥47.0 billion increase	About ￥13.0 billion decrease
	Euro	About ￥3.0 billion decrease	About ￥4.0 billion decrease	About ￥14.0 billion decrease	About ￥10.0 billion decrease