MITSUBISHI ELECTRIC CORPORATION MITSUBISHI ELECTRIC CORPORATION
PUBLIC RELATIONS DIVISION
7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo, 100-8310 Japan
FOR IMMEDIATE RELEASE No. 3023
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/
Mitsubishi Electric Announces Consolidated and Non-consolidated Financial Results for Fiscal 2016TOKYO, April 28, 2016 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated and non-consolidated financial results for fiscal 2016 (April 1, 2015- March 31, 2016).
Consolidated Financial Results
Net sales: | 4,394.3 | billion yen | (2% increase from the previous fiscal year) |
Operating income: | 301.1 | billion yen | (5% decrease from the previous fiscal year) |
Income before income taxes: | 318.4 | billion yen | (1% decrease from the previous fiscal year) |
Net income attributable to | 228.4 | billion yen | (3% decrease from the previous fiscal year) |
Mitsubishi Electric Corp.:
Non-consolidated Financial Results
Net sales: | 2,675.7 | billion yen | (Unchanged from the previous fiscal year) |
Operating income: | 112.0 | billion yen | (26% decrease from the previous fiscal year) |
Ordinary profit: | 185.7 | billion yen | (8% increase from the previous fiscal year) |
Net income: | 163.8 | billion yen | (21% increase from the previous fiscal year) |
During the fiscal year ended March 31, 2016, the business environment experienced buoyancy in the U.S. economy, which showed expansion, and a gradual trend of economic recovery continuing in Europe, despite a gradual slowdown continuing in China and other east Asian markets, weakness in personal consumption in Japan and stagnation in certain emerging markets. In addition, the yen weakened against the U.S. dollar compared to the previous year, while becoming stronger in the fourth quarter.
Under these circumstances, the Mitsubishi Electric Group has been working even harder than before to promote growth strategies rooted in its advantages, while continuously implementing initiatives to strengthen its competitiveness and business structure.
As a result, Mitsubishi Electric has recorded a consolidated net sales of 4,394.3 billion yen for fiscal 2016, an increase of 2% compared to the previous fiscal year, with increased sales in the Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, and Home Appliances segments.
Consolidated operating income decreased by 5% compared to the previous fiscal year to 301.1 billion yen, due to decreased profits in the Energy and Electric Systems, Information and Communication Systems, and Electronic Devices segments.
Consolidated Financial Results by Business Segment
Energy and Electric Systems
Total sales: | 1,264.6 billion yen | (3% increase from the previous fiscal year) |
Operating income: | 50.3 billion yen | (22.1 billion yen decrease from the previous fiscal year) |
The social infrastructure systems business saw increases in both orders and sales compared to the previous fiscal year due to increases in the power systems business and the transportation systems business in Japan, despite decreases in the public utility systems business in Japan and the transportation systems business outside Japan.
The building systems business experienced an increase in orders, while sales remained unchanged compared to the previous fiscal year, owing to growth in the new installation of elevators and escalators outside Japan.
As a result, total sales for this segment increased by 3% from the previous fiscal year. Operating income decreased by 22.1 billion yen from the previous fiscal year due primarily to a shift in project portfolios and lower profit in the social infrastructure systems business.
Industrial Automation Systems
Total sales: | 1,321.9 billion yen | (3% increase from the previous fiscal year) |
Operating income: | 159.1 billion yen | (13.1 billion yen increase from the previous fiscal year) |
The factory automation systems business saw a decrease in orders from the previous fiscal year mainly due to stagnant capital expenditures in China and other emerging markets, while sales remained unchanged from 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 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 3% from the previous fiscal year. Operating income increased by 13.1 billion yen from the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales: | 561.1 billion yen | (Unchanged from the previous fiscal year) |
Operating income: | 14.9 billion yen | (3.9 billion yen decrease from the previous fiscal year) |
The telecommunications equipment business remained unchanged in both orders and sales compared to the previous fiscal year.
The information systems and service business saw an increase in sales compared to the previous fiscal year, mainly owing to an increase in the system integrations business.
The electronic systems business saw an increase in orders compared to the previous fiscal year, due to an increase in orders for large-scale projects in the space business, while sales remained unchanged compared to the previous fiscal year due to a shift in the portfolios of large-scale projects in the defense systems business.
As a result, total sales for this segment remained unchanged compared to the previous fiscal year. Operating income decreased by 3.9 billion yen from the previous fiscal year due primarily to a shift in project portfolios.
Electronic Devices
Total sales: | 211.5 billion yen | (11% decrease from the previous fiscal year) |
Operating income: | 16.8 billion yen | (13.2 billion yen decrease from the previous fiscal year) |
The electronic devices business saw decreases in both orders and sales from the previous fiscal year due to a decrease in demand mainly for power modules used in automotive, railcar, consumer and industrial applications, despite an increase in optical communication devices.
As a result, total sales for this segment decreased by 11% compared to the previous fiscal year. Operating income decreased by 13.2 billion yen compared to the previous fiscal year due primarily to a decrease in sales.
Home Appliances | ||
Total sales: | 982.0 billion yen | (4% increase from the previous fiscal year) |
Operating income: | 63.8 billion yen | (9.5 billion yen increase from the previous fiscal year) |
The home appliances business saw an increase in sales of 4% compared to the previous fiscal year due to an increase in sales of residential and industrial air conditioners in Japan, as well as air conditioners for Europe, Asia and North America. The weaker yen also brought about a positive influence.
Operating income increased by 9.5 billion yen compared to the previous fiscal year largely due to an increase in sales.
Others | ||
Total sales: | 707.7 billion yen | (4% decrease from the previous fiscal year) |
Operating income: | 23.6 billion yen | (0.1 billion yen decrease from the previous fiscal year) |
Sales decreased by 4% compared to the previous fiscal year due to decreases mainly at affiliated companies involved in materials procurement.
Operating income decreased by 0.1 billion yen from the previous fiscal year due primarily to a decrease in sales.
Fundamental Dividend Distribution Policy and FY2016 and FY2017 Dividend
Fundamental dividend distribution policy
Mitsubishi Electric's fundamental policy is to comprehensively promote improvement in shareholder profit from the viewpoints of appropriate profit distribution commensurate with earnings performance of the respective fiscal year, as well as strengthening our financial standing through the company's internal reserves, with the ultimate goal of enhancing corporate value.
FY 2016 and FY 2017 dividend
Considering the Company's business performance and financial conditions in fiscal 2016, the Company has decided to pay a year-end retained earnings dividend of 18 yen per share for fiscal 2016. Adding the interim dividend of 9 yen per share, the total annual dividend will be 27 yen per share. Payment is planned to begin on June 2, 2016.
The retained earnings dividend for fiscal 2017 is still undecided.
cf. In fiscal 2015, interim dividend was 9 yen and year-end dividend was 18 yen per share. (Annual dividend of 27 yen per share)
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 year increased from the end of the previous fiscal year by 0.4 billion yen to 4,059.9 billion yen.
Total liabilities decreased from the end of the previous fiscal year by 6.8 billion yen to 2,122.4 billion yen. The outstanding balances of debts and corporate bonds increased by 22.0 billion yen from the end of the previous fiscal year to 404.0 billion yen, resulting in a rise in the ratio of interest bearing debt to total assets to 10.0%, representing a 0.6 point increase compared to the end of the previous fiscal year. Retirement and severance benefits increased by 47.4 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 33.5 billion yen and other current liabilities decreased by 23.1 billion yen.
Mitsubishi Electric Corporation shareholders' equity decreased by 3.4 billion yen compared to the end of the previous fiscal year to 1,838.7 billion yen. Shareholders' equity ratio was recorded at 45.3%, 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 57.9 billion yen along with a decrease in accumulated other comprehensive income by 174.7 billion yen caused by such factors as falling stock prices and the stronger yen, despite an increase from recording a net income attributable to Mitsubishi Electric Corporation of 228.4 billion yen.
Cash flows from operating activities for this fiscal year decreased by 11.6 billion yen compared to the previous fiscal year to 366.6 billion yen (cash in). Cash flows from investing activities increased by 57.2 billion yen compared to the previous fiscal year to 255.4 billion yen (cash out) due to increases in purchases of short-term investments and investment securities and other factors. As a result, free cash flow was 111.2 billion yen (cash in). Cash flows from financing activities were 82.1 billion yen (cash out) mainly due to dividend payment.
Cash Flow related index
FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | |
Cash Flow to interest bearing debt ratio1 | 6.8 times | 6.5 times | 1.0 times | 1.0 times | 1.1 times |
Interest coverage ratio2 | 11.7 times | 12.9 times | 91.9 times | 99.1 times | 120.7 times |
1 Balance of outstanding debts and corporate bonds* divided by cash flow from operating activities
*Balance of outstanding debts and corporate bonds is the average of the year-start and year-end balance of outstanding debts and corporate bonds.
2 Cash flow from operating activities divided by interest paid
Current Forecast for Fiscal 2017
Despite global business conditions facing concerns of a gradual economic slowdown in China, continued economic stagnation in some emerging markets as well as stagnation in consumption in the Japanese market, a continued gradual trend of economic expansion is expected mainly in the U.S. and Europe. However, it will not necessarily be possible to adopt an optimistic outlook regarding business performance due to concerns primarily of the yen continuing to strengthen.
Under these circumstances, the Mitsubishi Electric Group aims to achieve its management targets by uplifting its business performance and financial standings through initiatives such as promoting more strongly its global operations in its environment and energy related business and its social infrastructure systems related business, continuously increasing and strengthening profitability in each business and continuously implementing various Group-wide business improvement measures.
The current financial performance forecast for fiscal 2017 follows below. The impact of the 2016 Kumamoto earthquakes on the Mitsubishi Electric Group and its financial performance is reflected in this statement based upon certain assumption at the time of publication.
Current forecast for fiscal 2017: consolidated
Net sales | 4,280.0 | billion yen | (3% decrease from fiscal 2016) |
Operating income | 260.0 | billion yen | (14% decrease from fiscal 2016) |
Income before income taxes | 280.0 | billion yen | (12% decrease from fiscal 2016) |
Net income attributable to | |||
Mitsubishi Electric Corp. | 200.0 | billion yen | (12% decrease from fiscal 2016) |
Management Policy
Fundamental Management Policy
Based on its corporate statement "Changes for the Better," the Mitsubishi Electric Group will continue its challenge toward innovation to build a better tomorrow and pursue sustainable growth through a threefold balanced management policy of "Growth," "Profitability & Efficiency" and "Soundness."
The Group will also continue to work to earn the trust of and ensure the satisfaction of all stakeholders including society, customers, shareholders and employees.
Management Targets
The Mitsubishi Electric Group has established management targets that it continuously aims to achieve: an ROE of 10% or more and a ratio of interest-bearing debt to total assets of 15% or less. Aiming to achieve a higher level of growth, the Group has also set growth targets to reach consolidated net sales of 5 trillion yen or more and an operating income ratio of 8% or more by fiscal 2021 at the latest. For business performance in fiscal 2016, the Group recorded a consolidated net sales of 4,394.3 billion yen, an operating income ratio of 6.9%, an ROE of 12.4% and a ratio of interest-bearing debt to total assets of 10.0%.
Corporate Agenda
In order to pursue sustainable growth based on the Mitsubishi Electric Group's threefold balanced management policy of "Growth," "Profitability & Efficiency" and "Soundness," the Group will make resilient businesses even stronger, create strong businesses and strengthen its solutions business that takes root in its vibrant businesses, aiming to achieve a higher level of growth with targets of consolidated net sales of 5 trillion yen or more and an operating income ratio of 8% or more by fiscal 2021 at the latest.
To further expand its global business, the Mitsubishi Electric Group will make efforts to create new value by building and reinforcing an optimal business structure and through cooperation between business segments, in both global terms and for the entire corporate Group. Moreover, as a global, leading green company, the Group will further expand and promote its environment and energy related business and its social infrastructure systems related business, while reinforcing competitiveness in the U.S., Europe and China and also focusing on meeting demands in growing markets such as India, Southeast Asia and Central and South America.
Additionally, as part of its initiative to strengthen its business foundation that is to realize high-quality growth, the Group will make efforts-centered on growth-driving businesses-to supplement products and technologies and secure sales and services networks in new regions and markets, and take part in mergers and acquisitions, collaborations and other strategic activities with the goal of acquiring new customer bases, while reinforcing investments in development and infrastructure. Furthermore, the Group will achieve steady growth by reinforcing resource inputs and optimizing resource distribution through continuous metabolism of its business. With an objective of strengthening its integrated "craftsmanship," the Group will strengthen its development and productivity, and continue to streamline its productivity with measures such as Just-in-Time production. From the very first stages of design and development, the Mitsubishi Electric Group will strengthen activities that contribute to an emphasis on quality. The Group will utilize and optimally deploy human resources to enhance competitiveness, and engage in activities such as streamlining its human resources structure. The Group also intends to improve its financial standing and improve its comprehensive business efficiency from a medium and long term perspective, using Mitsubishi Electric's
version of ROIC1, a comprehensive business efficiency indicator.
The Mitsubishi Electric Group is committed to enhancing Corporate Social Responsibility (CSR) activities based on the Corporate Mission2 and Seven Guiding Principles3. In terms of legal and ethical compliance, which the Group has set as a priority task spanning the entire consolidated Mitsubishi Electric Group, the Group as a whole will further strengthen its compliance structure through intensive compliance policy,
internal control measures and internal training. The Group intends to improve its corporate governance structure through continuous promotion of measures such as compliance with Japan's Corporate Governance Code. The Group will also promote environmental initiatives to create a low-carbon and recycling-based society in order to acquire a higher level of trust from society, customers and shareholders.
Steadily executing the strategies above, the Mitsubishi Electric Group will work to further enhance its corporate value.
1 ROIC (Mitsubishi Electric version): A comprehensive business efficiency indicator which is calculated by asset items (fixed assets, cash, etc.) per different segments (and not by capital and liability) so that it is easier to track and improve.
2 Corporate Mission: The Mitsubishi Electric Group will continually improve its technologies and services by applying creativity to all aspects of its business. By doing so, we enhance the quality of life in our society.
3 These principles are:
Trust: Establish relationships with society, customers, shareholders, employees, and business partners based on strong mutual trust and respect.
Quality: Provide the best products and services with unsurpassed quality.
Technology: Pioneer new markets by promoting research and development, and fostering technological innovation. Citizenship: As a global player, contribute to the development of communities and society as a whole.
Ethics and Compliance: In all endeavors, conduct ourselves in compliance with applicable laws and high ethical standards. Environment: Respect nature, and strive to protect and improve the global environment.
Growth: Assure fair earnings to build a foundation for future growth.
Policy Regarding Financial Reporting Standards
The Mitsubishi Electric Group had continuously provided its consolidated financial statements in accordance with U.S. GAAP even before Japan introduced the consolidated financial reporting system in the country. Regarding appropriate application of the International Financial Reporting Standards, the Group intends to decide upon consideration of the situation worldwide.
Consolidated and Non-Consolidated Financial Results Summary-
Consolidated Financial Results
(In billions of yen except where noted)
FY '15 (A)
(Apr. 1, 2014 -
Mar. 31, 2015)
FY '16 (B)
(Apr. 1, 2015 -
Mar. 31, 2016)
B - A
B/A (%)
Net sales
4,323.0
4,394.3
71.3
102
Operating income
317.6
301.1
(16.4)
95
Income before income taxes
322.9
318.4
(4.4)
99
Net income attributable to Mitsubishi Electric Corp.
234.6
228.4
(6.2)
97
Basic net income per share attributable to Mitsubishi Electric Corp.
109.32 yen
106.43 yen
(2.89 yen)
97
Notes:
Consolidated financial charts made in accordance with U.S. GAAP.
The Company has 218 consolidated subsidiaries.
- Non-Consolidated Financial Results
(In billions of yen except where noted)
Consolidated Profit and Loss StatementFY '15 (A)
(Apr. 1, 2014 -
Mar. 31, 2015)
FY '16 (B)
(Apr. 1, 2015 -
Mar. 31, 2016)
B - A
B/A (%)
Net sales
2,675.6
2,675.7
0.1
100
Operating income
150.6
112.0
(38.5)
74
Ordinary profit
171.4
185.7
14.3
108
Net income
135.2
163.8
28.5
121
Dividend per share Annual dividend
Interim dividend
Year-end dividend
27 yen
9 yen
18 yen
27 yen
9 yen
18 yen
―
100
Net income per share
63.00 yen
76.31 yen
13.31 yen
121
(In millions of yen)
FY '15
(Apr. 1, 2014 -
Mar. 31, 2015)
(A) % of
FY '16 (Apr. 1, 2015 - Mar. 31, 2016) % ofB/A
total (B)
total B -A(%)
Net sales 4,323,041 100.0 4,394,353 100.0 71,312 102
Cost of sales 3,032,161 70.1 3,071,435 69.9 39,274 101
Selling, general and
administrative expenses 970,191 22.5 1,013,264 23.0 43,073 104
Loss on impairment of
long-lived assets 3,085 0.1 8,482 0.2 5,397 275
Operating income 317,604 7.3 301,172 6.9 (16,432) 95
Other income 78,394 1.9 60,576 1.3 (17,818) 77
Interest and Dividends 7,365 0.2 8,573 0.2 1,208 116
Equity in earnings of
affiliated companies 27,725 0.7 29,433 0.6 1,708 106
Other 43,304 1.0 22,570 0.5 (20,734) 52
Other expenses 73,030 1.7 43,272 1.0 (29,758) 59
Interest 4,023 0.1 3,495 0.1 (528) 87
Other 69,007 1.6 39,777 0.9 (29,230) 58
Income before income taxes 322,968 7.5 318,476 7.2 (4,492) 99
Income taxes 74,913 1.8 77,046 1.7 2,133 103
Net income 248,055 5.7 241,430 5.5 (6,625) 97
Net income attributable to
the noncontrolling interests 13,361 0.3 12,936 0.3 (425) 97
Net income attributable to
Mitsubishi Electric Corp. 234,694 5.4 228,494 5.2 (6,200) 97
Consolidated Comprehensive Income Statement(In millions of yen)
Consolidated Balance SheetFY '15 (A)
(Apr. 1, 2014 -
Mar. 31, 2015)
FY '16 (B)
(Apr. 1, 2015 -
Mar. 31, 2016)
B - A
Net income
248,055
241,430
(6,625)
Other comprehensive income (loss), net of tax
72,583
(70,881)
(143,464)
Foreign currency translation adjustments
Pension liability adjustments
21,171
(86,516)
(107,687)
Unrealized gains (losses) on securities
36,710
(25,498)
(62,208)
Unrealized gains (losses) on derivative instruments
7
(8)
(15)
Total
130,471
(182,903)
(313,374)
Comprehensive income
378,526
58,527
(319,999)
Comprehensive income attributable to the noncontrolling interests
21,725
4,796
(16,929)
Comprehensive income attributable to Mitsubishi Electric Corp.
356,801
53,731
(303,070)
Balance of Debt
381,994
404,039
22,045
Accumulated other comprehensive income (loss):
Foreign currency translation adjustments
102,959
39,847
(63,112)
Pension liability adjustments
(98,108)
(184,231)
(86,123)
Unrealized gains on securities
119,252
93,742
(25,510)
Unrealized gains (losses) on derivative instruments
(39)
(57)
(18)
(In millions of yen)
Consolidated Cash Flow StatementFY '15 (A)
(ended Mar. 31, 2015)
FY '16 (B)
(ended Mar. 31, 2016)
B - A
(Assets)
Current assets
2,633,445
2,551,863
(81,582)
Cash and cash equivalents
568,517
574,170
5,653
Trade receivables
1,048,542
1,035,168
(13,374)
Inventories
705,420
644,127
(61,293)
Prepaid expenses and other current assets
310,966
298,398
(12,568)
Long-term trade receivables
5,633
4,661
(972)
Investments
595,828
537,706
(58,122)
Net property, plant and equipment
706,475
712,599
6,124
Other assets
118,070
253,112
135,042
Total assets
4,059,451
4,059,941
490
(Liabilities)
Current liabilities
1,612,582
1,507,943
(104,639)
Bank loans and current portion of long-term debt
164,402
116,532
(47,870)
Trade payables
807,289
773,714
(33,575)
Other current liabilities
640,891
617,697
(23,194)
Long-term debt
217,592
287,507
69,915
Retirement and severance benefits
182,282
229,750
47,468
Other fixed liabilities
116,828
97,238
(19,590)
Total liabilities
2,129,284
2,122,438
(6,846)
(Equity)
Mitsubishi Electric Corp. shareholders' equity
1,842,203
1,838,773
(3,430)
Common stock
175,820
175,820
-
Capital surplus
211,155
211,999
844
Retained earnings
1,331,496
1,502,027
170,531
Accumulated other comprehensive income (loss)
124,064
(50,699)
(174,763)
Treasury stock at cost
(332)
(374)
(42)
Noncontrolling interests
87,964
98,730
10,766
Total equity
1,930,167
1,937,503
7,336
Total liabilities and equity
4,059,451
4,059,941
490
(In millions of yen)
Consolidated Segment InformationFY '15
(Apr. 1, 2014 -
Mar. 31, 2015)
(A)
FY '16
(Apr. 1, 2015 -
Mar. 31, 2016)
(B)
B - A
I
1
Cash flows from operating activities
Net income
248,055
241,430
(6,625)
2
Adjustments to reconcile net income to net cash
158,956
151,015
(7,941)
provided by operating activities
(1) Depreciation of tangible fixed assets and other
(2) Deferred income taxes
14,730
24,355
9,625
(3) Decrease (increase) in trade receivables
(42,044)
1,583
43,627
(4) Decrease (increase) in inventories
(75,829)
39,220
115,049
(5) Decrease (increase) in other assets
(6,966)
7,612
14,578
(6) Increase (decrease) in trade payables
47,948
(21,754)
(69,702)
(7) Increase (decrease) in other liabilities
41,823
(92,810)
(134,633)
(8) Other, net
(8,360)
16,026
24,386
Net cash provided by operating activities
378,313
366,677
(11,636)
II
1
Cash flows from investing activities
Capital expenditure
(199,758)
(182,251)
17,507
2
Proceeds from sale of property, plant and equipment
6,768
2,400
(4,368)
3
Purchase of short-term investments and investment securities (net of cash acquired)
(5,608)
(63,872)
(58,264)
4
Proceeds from sale of short-term investments and investment securities
10,722
8,511
(2,211)
5
Other, net
(10,287)
(20,231)
(9,944)
Net cash used in investing activities
(198,163)
(255,443)
(57,280)
I + II
Free cash flow
180,150
111,234
(68,916)
III
1
Cash flows from financing activities
Proceeds from long-term debt
90,598
110,108
19,510
2
Repayment of long-term debt
(103,497)
(93,163)
10,334
3
Increase (decrease) in bank loans, net
11,392
(13,912)
(25,304)
4
Dividends paid
(42,936)
(57,963)
(15,027)
5
Purchase of treasury stock
(50)
(43)
7
6
Reissuance of treasury stock
0
1
1
7
Other, net
(5,130)
(27,172)
(22,042)
Net cash provided by (used in) financing activities
(49,623)
(82,144)
(32,521)
IV
Effect of exchange rate changes on cash and cash equivalents
19,941
(23,437)
(43,378)
V
Net increase in cash and cash equivalents
150,468
5,653
(144,815)
VI
Cash and cash equivalents at beginning of period
418,049
568,517
150,468
VII
Cash and cash equivalents at end of period
568,517
574,170
5,653
Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment
FY '15
(Apr. 1, 2014 -
Mar. 31, 2015)
FY '16
(Apr. 1, 2015 -
Mar. 31, 2016)
C - A
D - B
C/A (%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (D)
Energy and Electric Systems
1,228,958
72,448
1,264,604
50,342
35,646
(22,106)
103
Industrial Automation Systems
1,282,749
145,982
1,321,937
159,160
39,188
13,178
103
Information and Communication Systems
559,521
18,934
561,119
14,999
1,598
(3,935)
100
Electronic Devices
238,402
30,163
211,580
16,870
(26,822)
(13,293)
89
Home Appliances
944,830
54,296
982,064
63,856
37,234
9,560
104
Others
740,517
23,742
707,746
23,620
(32,771)
(122)
96
Subtotal
4,994,977
345,565
5,049,050
328,847
54,073
(16,718)
101
Eliminations and other
(671,936)
(27,961)
(654,697)
(27,675)
17,239
286
-
Total
4,323,041
317,604
4,394,353
301,172
71,312
(16,432)
102
*Notes: Inter-segment sales are included in the above chart.
Sales and Operating Income by Location
(In millions of yen)
Location
FY '15
(Apr. 1, 2014 -
Mar. 31, 2015
FY '16
(Apr. 1, 2015 -
Mar. 31, 2016)
C - A
D - B
C/A (%)
Sales (A)
Operating income (B)
Sales (C)
Operating income (D)
Japan
3,578,960
226,199
3,563,530
173,383
(15,430)
(52,816)
100
North America
388,021
5,178
446,935
9,421
58,914
4,243
115
Asia (excluding Japan)
1,047,758
82,419
1,054,563
91,006
6,805
8,587
101
Europe
383,965
11,803
387,628
14,806
3,663
3,003
101
Others
49,495
402
50,260
904
765
502
102
Subtotal
5,448,199
326,001
5,502,916
289,520
54,717
(36,481)
101
Eliminations
(1,125,158)
(8,397)
(1,108,563)
11,652
16,595
20,049
-
Total
4,323,041
317,604
4,394,353
301,172
71,312
(16,432)
102
*Notes: 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 its 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 4,394.3 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】
April 28, 2016 Mitsubishi Electric Corporation
Fiscal 2016 Consolidated ResultsFinancial Results
Net Sales by Segment
Operating Income by Segment
Overseas Net Sales by Segment
Overseas Net Sales by Region
Overseas Production Volume
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
Loans (Interest-Bearing Debt)
Number of Employees
Quarterly Financial Results for Fiscal 2016
Quarterly Net Sales by Segment for Fiscal 2016
Quarterly Operating Income by Segment for Fiscal 2016
Financ ial 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
Full Year (Actual)
FY
'16
FY
'17
1st Half (Actual
)
Full Year (Actual)
1st Half (Forecas
t)
Full Yea (Forecas
r t)
Net sales
4,323.0
(+7)
2,063.2
(+5)
4,394.3
(+2)
1,990.0
(-4)
4,280.0
(-3)
Consolidated to non-consolidated ratio
1.62
1.64
Operating income
317.6
(+35)
127.0
(+5)
301.1
(-5)
95.0
(-25)
260.0
(-14)
Income before income taxes
322.9
(+30)
1,330.0
(-9)
318.4
(-1)
115.0
(-14)
280.0
(-12)
Net income attributable to Mitsubishi Electric Corp.
234.6
(+53)
92.9
(-5)
228.4
(-3)
85.0
(-9)
200.0
(-12)
Consolidated to non-consolidated ratio
1.74
1.39
Financial account balance
3.3
2.4
5.0
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
(Actual)
FY'16
(Actual)
FY '17
(Forecast)
Energy and Electric Systems
1,228.9 (+4)
1,264.6 (+3)
1,250.0 (-1)
Industrial Automation Systems
1,282.7 (+17)
1,321.9 (+3)
1,300.0 (-2)
Information and Communication Systems
559.5 (+2)
561.1 (0)
460.0 (-18)
Electronic Devices
238.4 (+22)
211.5 (-11)
180.0 (-15)
Home Appliances
944.8 (0)
982.0 (+4)
1,030.0 (+5)
Others
740.5 (+10)
707.7 (-4)
690.0 (-3)
Subtotal
4,994.9 (+8)
5,049.0 (+1)
4,910.0 (-3)
Eliminations
-671.9
-654.6
-630.0
Consolidated total
4,323.0 (+7)
4,394.3 (+2)
4,280.0 (-3)
Ope rating Income by Se gme nt
(Billions of yen, year-on-year % change)
FY '15
(Actual)
FY'16
(Actual)
FY '17
(Forecast)
Energy and Electric Systems
72.4 (-5)
50.3 (-31)
55.0 (+9)
Industrial Automation Systems
145.9 (+49)
159.1 (+9)
146.0 (-8)
Information and Communication Systems
18.9 (+242)
14.9 (-21)
8.0 (-47)
Electronic Devices
30.1 (+200)
16.8 (-44)
5.0 (-70)
Home Appliances
54.2 (+3)
63.8 (+18)
58.0 (-9)
Others
23.7 (+20)
23.6 (-1)
18.0 (-24)
Subtotal
345.5 (+32)
328.8 (-5)
290.0 (-12)
Eliminations and other
-27.9
-27.6
-30.0
Consolidated total
317.6 (+35)
301.1 (-5)
260.0 (-14)
Ove rseas Ne t sale s by Se gme nt
(Billions of yen, year-on-year % change)
FY '15
(Actual)
FY'16
(Actual)
Energy and Electric Systems
461.4 (+19)
458.9 (-1)
Industrial Automation Systems
734.8 (+25)
755.5 (+3)
Information and Communication Systems
17.5 (-47)
46.3 (+164)
Electronic Devices
103.6 (+2)
98.5 (-5)
Home Appliances
474.4 (+6)
499.6 (+5)
Others
18.6 (+7)
14.1 (-24)
Consolidated total
1,810.6 (+15)
1,873.1 (+3)
Ratio of overseas net sales to total sales
41.9%
42.6%
Ove rs e as Ne t Sale s by Re gion
(Billions of yen, year-on-year % change)
FY '15
(Actual)
FY'16
(Actual)
North America
398.5 (+20)
447.5 (+12)
Asia
959.5 (+18)
963.6 (0)
Europe
360.6 (+6)
369.9 (+3)
Others
91.9 (+1)
91.9 (0)
Consolidated total
1,810.6 (+15)
1,873.1 (+3)
Ove rs e as Production Volume
(%)
FY '15
(Actual)
FY '16
(Actual)
Ratio of consolidated net sales
26.3
26.8
Ratio of overseas net sales
49.9
50.4
Fore 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 FY '17
(Actual)
(Actual)
1st Half
(Forecast)
Exchange rates for
US$
¥110
¥121
¥105
¥105
recording net sales
Euro
¥139
¥133
¥120
¥120
Consolidated total
About ¥124.0 billion increase About ¥60.0 billion increase
Impact of exchange rate fluctuations on net sales
US$
Euro
About ¥50.0 billion increase About ¥47.0 billion increase
About ¥8.0 billion increase About ¥14.0 billion decrease
Capital Expe nditure s
(Billions of yen, year-on-year % change)
FY '15
(Actual)
FY '16
(Actual)
FY '17
(Forecast)
Energy and Electric Systems
52.1
(+44)
35.2
(-32)
Industrial Automation Systems
53.1
(-7)
75.0
(+41)
Information and Communication Systems
24.8
(+5)
22.3
(-10)
Electronic Devices
14.3
(-65)
17.1
(+20)
Home Appliances
43.7
(-9)
45.9
(+5)
Others
5.4
(-25)
7.3
(+35)
Common
13.4
(+40)
9.7
(-28)
Consolidated total
206.8
(-7)
212.5
(+3)
260.0
(+22)
De pre ciation of Tang ible Fixe d As s e ts and Othe r
(Billions of yen, year-on-year % change)
FY '15
(Actual
)
FY '16
(Actual)
FY '17
(Forecas
t)
Consolidated
158.9
(+16)
151.0
(-5)
170.0
(+13)
Re s e arch and De ve lopme nt Expe nditure s
(Billions of yen, year-on-year % change)
FY '15
(Actual)
FY '16
(Actual)
FY '17
(Forecast)
Consolidated
195.3 (+9)
202.9 (+4)
213.0 (+5)
Ratio of net sales
4.5
4.6
5.0
* Research and development expenditures in the cost of production are also included.
Loans (Interest-B earing De bt)
(Billions of yen, %)
FY '15
(Actual)
FY '16
(Actual)
Consolidated
381.9
404.0
Ratio of total assets
9.4
10.0
Numbe r of Employe e s
Quarte rly Financial Re s ults for Fis cal 2016
(Consolidated) (Billions of yen, year-on-year % change)
FY'15 (Actual)
FY'16 (Actual)
1st Half
Q3
Q4
Full year
1st Half
Q3
Q4
Full Year
Net sales
1,972.8
1,010.4
1,339.7
4,323.0 (+7)
2,063.2 (+5)
1,028.3 (+2)
1,302.7 (-3)
4,394.3 (+2)
Operating income
121.3
79.9
116.2
317.6 (+35)
127.0 (+5)
80.3 (0)
93.8 (-19)
301.1 (-5)
Income before income taxes
145.9
74.7
102.3
322.9 (+30)
133.0 (-9)
85.6 (+15)
99.7 (-3)
318.4 (-1)
Net income attributable to Mitsubishi Electric Corp.
97.8
47.7
89.0
234.6 (+53)
92.9 (-5)
59.8 (+25)
75.6 (-15)
228.4 (-3)
Figures in parentheses in the right column indicate change from the previous corresponding period
Quarte rly Ne t Sale s by Se gme nt for Fis cal 2016
(Billions of yen, year-on-year % change)
FY'15 (Actual)
FY'16 (Actual)
1st Half
Q3
Q4
Full year
1st Half
Q3
Q4
Full Ye
ar
Energy and Electric Systems
502.1
277.5
449.2
1,228.9
(+4)
523.7
(+4)
284.8
(+3)
455.9
(+1)
1,264.6
(+3)
Industrial Automation Systems
609.3
323.2
350.1
1,282.7
(+17)
661.5
(+9)
327.2
(+1)
333.1
(-5)
1,321.9
(+3)
Information and Communication Systems
248.5
126.9
184.0
559.5
(+2)
224.0
(-10)
139.8
(+10)
197.2
(+7)
561.1
(0)
Electronic Devices
106.5
55.0
76.8
238.4
(+22)
123.2
(+16)
42.9
(-22)
45.4
(-41)
211.5
(-11)
Home Appliances
477.1
212.5
255.2
944.8
(0)
511.1
(+7)
220.1
(+4)
250.7
(-2)
982.0
(+4)
Others
351.2
183.6
205.6
740.5
(+10)
338.4
(-4)
171.1
(-7)
198.1
(-4)
707.7
(-4)
Subtotal
2,294.8
1,179.0
1,521.0
4,994.9
(+8)
2,382.1
(+4)
1,186.1
(+1)
1,480.6
(-3)
5,049.0
(+1)
Eliminations
-322.0
-168.6
-181.2
-671.9
-318.8
-157.8
-177.9
-654.6
Consolidated total
1,972.8
1,010.4
1,339.7
4,323.0
(+7)
2,063.2
(+5)
1,028.3
(+2)
1,302.7
(-3)
4,394.3
(+2)
Quarte rly Ope rating Income by Se gme nt for Fis cal 2016
(In millions of yen)
Location of Customers | FY '15 (Apr. 1, 2014 - Mar. 31, 2015) | FY '16 (Apr. 1, 2015 - Mar. 31, 2016) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 2,512,357 | 58.1 | 2,521,194 | 57.4 | 8,837 | 100 | ||
North America | 398,501 | 9.2 | 447,578 | 10.2 | 49,077 | 112 | ||
Asia (excluding Japan) | 959,540 | 22.2 | 963,684 | 21.9 | 4,144 | 100 | ||
Europe | 360,668 | 8.4 | 369,978 | 8.4 | 9,310 | 103 | ||
Others | 91,975 | 2.1 | 91,919 | 2.1 | (56) | 100 | ||
Total overseas sales | 1,810,684 | 41.9 | 1,873,159 | 42.6 | 62,475 | 103 | ||
Consolidated total | 4,323,041 | 100.0 | 4,394,353 | 100.0 | 71,312 | 102 | ||
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.
(Person)
FY '15 (Actual) | FY '16 (Actual) | FY '17 (Forecast) | ||
Consolidated | 129,249 | 135,160 | ||
Non-consolidated | 32,534 | 33,321 | 34,640 | |
Subsidiaries | 172 companies 96,715 | 218 companies 101,839 | ||
Domestic subsidiaries | 97 companies 54,316 | 97 companies 54,321 | ||
Overseas subsidiaries | 75 companies 42,399 | 121 companies 47,518 | ||
FY'15: Apr. 1, 2014 - Mar. 31, 2015
FY'16: Apr. 1, 2015 - Mar. 31, 2016
(Billions of yen, year-on-year % change)
FY'15 (Actual) | FY'16 (Actual) | |||||||
1st Half | Q3 | Q4 | Full year | 1st Half | Q3 | Q4 | Full Year | |
Energy and Electric Systems | 12.5 | 20.0 | 39.8 | 72.4 (-5) | 3.7 (-70) | 14.6 (-27) | 31.9 (-20) | 50.3 (-31) |
Industrial Automation Systems | 66.2 | 41.9 | 37.7 | 145.9 (+49) | 83.9 (+27) | 43.2 (+3) | 31.9 (-15) | 159.1 (+9) |
Information and Communication Systems | 5.3 | 7.6 | 5.9 | 18.9 (+242) | -3.8 (－) | 8.2 (+8) | 10.5 (+78) | 14.9 (-21) |
Electronic Devices | 7.7 | 8.2 | 14.1 | 30.1 (+200) | 16.3 (+110) | 2.6 (-68) | -2.0 (－) | 16.8 (-44) |
Home Appliances | 35.2 | 5.9 | 13.1 | 54.2 (+3) | 33.1 (-6) | 14.9 (+152) | 15.6 (+20) | 63.8 (+18) |
Others | 8.2 | 5.7 | 9.7 | 23.7 (+20) | 7.3 (-11) | 6.3 (+11) | 9.9 (+2) | 23.6 (-1) |
Subtotal | 135.3 | 89.5 | 120.6 | 345.5 (+32) | 140.7 (+4) | 90.0 (+1) | 97.9 (-19) | 328.8 (-5) |
Eliminations and other | -13.9 | -9.5 | -4.3 | -27.9 | -13.7 | -9.7 | -4.1 | -27.6 |
Consolidated total | 121.3 | 79.9 | 116.2 | 317.6 (+35) | 127.0 (+5) | 80.3 (0) | 93.8 (-19) | 301.1 (-5) |
Mitsubishi Electric Corporation issued this content on 28 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 April 2016 04:30:00 UTC
Original Document: http://www.mitsubishielectric.com/news/2016/0428.pdf
