TIDMMEL
RNS Number : 6535W
Mitsubishi Electric Corporation
28 April 2016
FOR IMMEDIATE RELEASE No. 3023
Investor Relations Inquiries Media Inquiries
Investor Relations Group, Public Relations Division
Corporate Finance 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 2016
TOKYO, 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 (2% increase from the
yen previous fiscal year)
Operating income: 301.1 billion (5% decrease from the
yen previous fiscal year)
Income before 318.4 billion (1% decrease from the
income taxes: yen previous fiscal year)
Net income attributable 228.4 billion (3% decrease from the
to Mitsubishi yen previous fiscal year)
Electric Corp.:
Non-consolidated Financial Results
Net sales: 2,675.7 billion (Unchanged from the previous
yen fiscal year)
Operating income: 112.0 billion (26% decrease from the
yen previous fiscal year)
Ordinary profit: 185.7 billion (8% increase from the
yen previous fiscal year)
Net income: 163.8 billion (21% increase from the
yen 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 (3% increase from the previous
yen fiscal year)
Operating 50.3 billion (22.1 billion yen decrease
income: yen 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 (3% increase from the previous
yen fiscal year)
Operating 159.1 billion (13.1 billion yen increase
income: yen 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 (Unchanged from the previous
yen fiscal year)
Operating 14.9 billion (3.9 billion yen decrease
income: yen 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 (11% decrease from the previous
yen fiscal year)
Operating 16.8 billion (13.2 billion yen decrease
income: yen 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 (4% increase from the previous
yen fiscal year)
Operating 63.8 billion (9.5 billion yen increase
income: yen 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 (4% decrease from the previous
yen fiscal year)
Operating 23.6 billion (0.1 billion yen decrease
income: yen 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
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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 6.8 6.5 1.0 1.0 1.1
to interest times times times times times
bearing debt
ratio(1)
------------------ -------- -------- -------- -------- --------
Interest coverage 11.7 12.9 91.9 99.1 120.7
ratio(2) times times times times 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 (3% decrease from
yen fiscal 2016)
Operating income 260.0 billion (14% decrease from
yen fiscal 2016)
Income before 280.0 billion (12% decrease from
income taxes yen fiscal 2016)
Net income attributable 200.0 billion (12% decrease from
to Mitsubishi yen fiscal 2016)
Electric Corp.
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 ROIC(1) , a
comprehensive business efficiency indicator.
The Mitsubishi Electric Group is committed to enhancing
Corporate Social Responsibility (CSR) activities based on the
Corporate Mission(2) and Seven Guiding Principles(3) . 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:
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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
1. Consolidated Financial Results
(In billions of yen except where noted)
FY '15 FY '16 B - B/A
(A) (B) A (%)
(Apr. 1, (Apr. 1,
2014 - 2015 -
Mar. 31, Mar. 31,
2015) 2016)
------------------------- ---------- ---------- -------- -----
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 109.(32) 106.(43) (2.(89)
Corp. yen yen yen) 97
------------------------- ---------- ---------- -------- -----
Notes:
1) Consolidated financial charts made in accordance with U.S.
GAAP.
2) The Company has 218 consolidated subsidiaries.
2. Non-Consolidated Financial Results
(In billions of yen except where noted)
FY '15 FY '16 B - B/A
(A) (B) A (%)
(Apr. 1, (Apr. 1,
2014 - 2015 -
Mar. 31, Mar. 31,
2015) 2016)
----------------------------- ---------- ---------- -------- -----
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 27 yen 27 yen _ 100
----------------------------- ---------- ---------- -------- -----
Interim dividend 9 yen 9 yen
----------------------------- ---------- ---------- -------- -----
Year-end dividend 18 yen 18 yen
----------------------------- ---------- ---------- -------- -----
Net income per 63.(00) 76.(31) 13.(31)
share yen yen yen 121
----------------------------- ---------- ---------- -------- -----
Consolidated Profit and Loss Statement
(In millions of yen)
FY '15 FY '16
(Apr. 1, (Apr. 1,
2014 - 2015 -
Mar. 31, Mar. 31,
2015) 2016)
(A) % of (B) % of B - B/A
total total 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)
FY '15 FY '16 B -
(A) (B) A
(Apr. 1, (Apr. 1,
2014 - 2015 -
Mar. 31, Mar. 31,
2015) 2016)
---- -------------------------------- ---------- ---------- ----------
Net income 248,055 241,430 (6,625)
-------------------------------------- ---------- ---------- ----------
Other comprehensive income
(loss), net of tax
-------------------------------------- ---------- ---------- ----------
Foreign currency translation
adjustments 72,583 (70,881) (143,464)
------------------------------------- ---------- ---------- ----------
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)
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-------------------------------------- ---------- ---------- ----------
Comprehensive income attributable
to
Mitsubishi Electric Corp. 356,801 53,731 (303,070)
-------------------------------------- ---------- ---------- ----------
Consolidated Balance Sheet
(In millions of yen)
FY '15 FY '16 B - A
(A) (B)
(ended (ended
Mar. 31, Mar. 31,
2015) 2016)
----------------------------------------- ------------ ------------ ----------
(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
========================================= ============ ============ ==========
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)
----------------------------------------- ------------ ------------ ----------
Consolidated Cash Flow Statement
(In millions of yen)
FY '15 FY '16 B -
A
(Apr. (Apr.
1, 2014 1, 2015
- Mar. - Mar.
31, 2015) 31, 2016)
(A) (B)
---- ------------------------------- ------------ ------------ ----------
I Cash flows from operating
activities
1 Net income 248,055 241,430 (6,625)
---- ------------------------------- ------------ ------------ ----------
2 Adjustments to reconcile
net income to net cash
provided by operating
activities
---- ------------------------------- ------------ ------------ ----------
(1) Depreciation of tangible
fixed assets and other 158,956 151,015 (7,941)
---- ------------------------------- ------------ ------------ ----------
(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 Cash flows from investing
activities
1 Capital expenditure (199,758) (182,251) 17,507
---- ------------------------------- ------------ ------------ ----------
Proceeds from sale of
2 property, plant and equipment 6,768 2,400 (4,368)
---- ------------------------------- ------------ ------------ ----------
Purchase of short-term
investments and investment
securities (net of cash
3 acquired) (5,608) (63,872) (58,264)
---- ------------------------------- ------------ ------------ ----------
Proceeds from sale of
short-term investments
4 and investment securities 10,722 8,511 (2,211)
---- ------------------------------- ------------ ------------ ----------
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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 Cash flows from financing
activities
Proceeds from long-term
1 debt 90,598 110,108 19,510
---- ------------------------------- ------------ ------------ ----------
Repayment of long-term
2 debt (103,497) (93,163) 10,334
---- ------------------------------- ------------ ------------ ----------
Increase (decrease) in
3 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
---- ------------------------------- ------------ ------------ ----------
Reissuance of treasury
6 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)
---- ------------------------------- ------------ ------------ ----------
Effect of exchange rate
changes on cash and cash
IV equivalents 19,941 (23,437) (43,378)
---- ------------------------------- ------------ ------------ ----------
Net increase in cash and
V cash equivalents 150,468 5,653 (144,815)
---- ------------------------------- ------------ ------------ ----------
Cash and cash equivalents
VI at beginning of period 418,049 568,517 150,468
------------ ------------
Cash and cash equivalents
VII at end of period 568,517 574,170 5,653
---- ------------------------------- ------------ ------------ ----------
Consolidated Segment Information
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment FY '15 FY '16 C - D - C/A
A B
(Apr. 1, 2014 (Apr. 1, 2015 (%)
- -
Mar. 31, 2015) Mar. 31, 2016)
----------------------- ---------------------- --------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(B) (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.
2. Sales and Operating Income by Location
(In millions of yen)
Location FY '15 FY '16 C - D - C/A
A B
(Apr. 1, 2014 (Apr. 1, 2015 (%)
- -
Mar. 31, 2015 Mar. 31, 2016)
----------------- ------------------------ --------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(B) (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.
3. Sales by Location of Customers
(In millions of yen)
Location of FY '15 FY '16 B - B/A
Customers A (%)
(Apr. 1, 2014 (Apr. 1, 2015
- -
Mar. 31, 2015) Mar. 31, 2016)
------------------ ----------------------- ----------------------- ------- -----
Sales % of Sales % of
(A) total (B) total
net sales 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
(MORE TO FOLLOW) Dow Jones Newswires
April 28, 2016 05:22 ET (09:22 GMT)
----------------- ---------- ----------- ---------- ----------- ------- -----
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:
(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.
(13) 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.
(14) 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
http://www.rns-pdf.londonstockexchange.com/rns/6535W_-2016-4-28.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR IPMLTMBBTMPF
(END) Dow Jones Newswires
April 28, 2016 05:22 ET (09:22 GMT)
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