TIDMMEL
RNS Number : 8213V
Mitsubishi Electric Corporation
02 February 2017
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FOR IMMEDIATE RELEASE No. 3081
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 Financial Results
for the First 9 Months and Third Quarter of Fiscal 2017
TOKYO, February 2, 2017 - Mitsubishi Electric Corporation
(TOKYO: 6503) announced today its financial results for the first 9
months and third quarter ended December 31, 2016, of the current
fiscal year ending March 31, 2017 (fiscal 2017).
1. Consolidated First 9 Months Results (April 1, 2016 - December
31, 2016)
Net sales: 2,947.1 (5% decrease from the same
billion period last year)
yen
Operating income: 175.5 billion (15% decrease from the
yen same period last year)
Income before 196.1 billion (10% decrease from the
income taxes: yen same period last year)
Net income attributable 135.3 billion (11% decrease from the
to yen same period last year)
Mitsubishi Electric
Corp.:
In the first 9 months of fiscal 2017, the business environment
was buoyed by the expanding U.S. economy and gradual recoveries in
Japan and Europe, as well as modest improvement in China's economic
slowdown. In addition, the yen became stronger against foreign
currencies compared to the previous year, but weakened after the
U.S. presidential election in November.
Under these circumstances, consolidated net sales for the first
9 months of fiscal 2017 decreased by 5% compared to the same period
of the previous fiscal year to 2,947.1 billion yen, with decreased
sales in the Energy and Electric Systems, Industrial Automation
Systems, Information and Communication Systems and Electronic
Devices segments. Consolidated operating income decreased by 15%
compared to the same period of the previous fiscal year to 175.5
billion yen, due to decreased profits in the Energy and Electric
Systems, Industrial Automation Systems and Electronic Devices
segments.
Consolidated Financial Results by Business Segment (First 9
months, Fiscal 2017)
Energy and Electric Systems
Total sales: 784.7 billion (3% decrease from the same
yen period last year)
Operating 13.7 billion (4.6 billion yen decrease
income: yen from the same period last
year)
The social infrastructure systems business saw no change in
orders, while sales decreased compared to the same period of the
previous fiscal year due to decreases in the public utility systems
business in Japan as well as the power systems and the
transportation systems business outside Japan. In addition, the
stronger yen had the negative influences.
The building systems business experienced decreases in both
orders and sales compared to the same period of the previous fiscal
year, due primarily to negative influences caused by the stronger
yen, despite the growth in the renewal business in Japan, as well
as the installation business of new elevators and escalators
outside Japan.
As a result, total sales for this segment decreased by 3% from
the same period of the previous fiscal year. Operating income
decreased by 4.6 billion yen from the same period of the previous
fiscal year due primarily to a decrease in sales.
Industrial Automation Systems
Total sales: 951.9 billion (4% decrease from the same
yen period last year)
Operating 102.5 billion (24.6 billion yen decrease
income: yen from the same period last
year)
The factory automation systems business saw an increase in
orders from the same period of the previous fiscal year primarily
due to growth in capital expenditures in the fields of smartphones,
electrical cars in China and organic light emitting diodes (OLED)
mainly in Korea, while sales decreased from the same period of the
previous fiscal year due to decreased capital expenditures in
photovoltaic systems in Japan and the negative influences caused by
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 stagnation in car sales in Japan and the negative
influences caused by the stronger yen, despite growth in car sales
mainly in Europe.
As a result, total sales for this segment decreased by 4% from
the same period of the previous fiscal year. Operating income
decreased by 24.6 billion yen from the same period of the previous
fiscal year due primarily to a decrease in sales.
Information and Communication Systems
Total sales: 285.4 billion (22% decrease from the same
yen period last year)
Operating 4.4 billion (Unchanged from the same period
income: yen last year)
The telecommunications equipment 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 the fiscal year and decreased sales of communications
infrastructure equipment.
The information systems and service business saw a decrease in
sales compared to the same period of the previous fiscal year,
mainly owing to a decrease in the system integrations business.
The electronic systems business saw decreases in both orders and
sales compared to the same period of the previous fiscal year due
to a shift in the portfolio of large-scale projects in the space
systems business.
As a result, total sales for this segment decreased by 22%
compared to the same period of the previous fiscal year. Operating
income was unchanged from the same period of the previous fiscal
year due primarily to a shift in project portfolios.
Electronic Devices
Total sales: 135.8 billion (18% decrease from the same
yen period last year)
Operating 5.1 billion (13.8 billion yen decrease
income: yen from the same period last
year)
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 by 18%
compared to the same period of the previous fiscal year due to a
decrease in demand for power modules, along with the negative
influences caused by the stronger yen.
As a result, operating income decreased by 13.8 billion yen
compared to the same period of the previous fiscal year due
primarily to a decrease in sales.
Home Appliances
Total sales: 746.4 billion (2% increase from the same
yen period last year)
Operating 57.6 billion (9.4 billion yen increase
income: yen from the same period last
year)
The home appliances business saw an increase in sales of 2%
compared to the same period of the previous fiscal year due to
increases in sales of air conditioners in the European, Chinese and
North American markets and in sales of residential and industrial
air conditioners in Japan, despite the negative influences caused
by the stronger yen.
Operating income increased by 9.4 billion yen compared to the
same period of the previous fiscal year largely due to an increase
in sales.
Others
Total sales: 514.5 billion (1% increase from the same
yen period last year)
Operating 15.2 billion (1.6 billion yen increase
income: yen from the same period last
year)
Sales increased by 1% compared to the same period of the
previous fiscal year mainly due to an increase in sales among
affiliated companies involved in materials procurement.
Operating income increased by 1.6 billion yen from the same
period of the previous fiscal year due primarily to an increase in
sales.
2. Consolidated Third-quarter Results (October 1, 2016 -
December 31, 2016)
Net sales: 974.7 billion (5% decrease from the
yen same period last year)
Operating income: 53.8 billion (33% decrease from the
yen same period last year)
Income before income 72.4 billion (15% decrease from the
taxes: yen same period last year)
Net income attributable
to
Mitsubishi Electric 46.9 billion (22% decrease from the
Corp.: yen same period last year)
Consolidated net sales for this quarter, from October through
December 2016, was 974.7 billion yen, a 5% decrease from the same
period of the previous fiscal year, due primarily to decreased
sales in the Energy and Electric Systems and Information and
Communication Systems segments.
Consolidated operating income was 53.8 billion yen, a 33%
decrease from the same period of the previous fiscal year, with
decreased profits in the Energy and Electric Systems, Industrial
Automation Systems, Information and Communication Systems and Home
Appliances segments.
Consolidated Financial Results by Business Segment (Third
Quarter, Fiscal 2017)
Energy and Electric Systems
Total sales: 259.2 billion (9% decrease from the same
yen period last year)
Operating 4.5 billion (10.0 billion yen decrease
income: yen from the same period last
year)
The social infrastructure systems business saw an increase in
orders compared to the same period of the previous fiscal year due
mainly to an increase in the transportations systems business in
Japan, while sales decreased compared to the same period of the
previous fiscal year due primarily to decreases in the power
systems business worldwide as well as the public utility systems
business in Japan.
The building systems business experienced decreases in both
orders and sales compared to the same period of the previous fiscal
year, owing to negative influences caused by the stronger yen,
despite the growth in the renewal business in Japan and the
installation business of new elevators and escalators outside
Japan.
As a result, total sales for this segment decreased by 9% from
the same period of the previous fiscal year. Operating income
decreased by 10.0 billion yen from the same period of the previous
fiscal year due primarily to a decrease in sales.
Industrial Automation Systems
Total sales: 334.3 billion (2% increase from the same
yen period last year)
Operating 40.4 billion (2.8 billion yen decrease
income: yen from the same period last
year)
The factory automation systems business saw increases in both
orders and sales from the same period of the previous fiscal year
mainly due to a growth in capital expenditures in the fields of
smartphones, electrical cars in China and organic light emitting
diodes (OLED) mainly in Korea.
The automotive equipment business saw increases in both orders
and sales from the same period of the previous fiscal year due
primarily to a growth in car sales mainly in Europe.
As a result, total sales for this segment increased by 2% from
the same period of the previous fiscal year. Operating income
decreased by 2.8 billion yen from the same period of the previous
fiscal year due primarily to the negative influences caused by the
stronger yen.
Information and Communication Systems
Total sales: 87.1 billion (38% decrease from the same
yen period last year)
Operating 0.5 billion (7.6 billion yen decrease
income: yen from the same period last
year)
The telecommunications equipment 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 the fiscal year and decreased sales of 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 system integrations business.
The electronic systems business saw an increase in orders
compared to the same period of the previous fiscal year owing to
increased large-scale projects in the space systems business, while
sales decreased compared
to the same period of the previous fiscal year due primarily to
a shift in project portfolios in the space systems business.
As a result, total sales for this segment decreased by 38%
compared to the same period of the previous fiscal year. Operating
income decreased by 7.6 billion yen from the same period of the
previous fiscal year due primarily to a decrease in sales.
Electronic Devices
Total sales: 49.3 billion (15% increase from the same
yen period last year)
Operating 3.3 billion (0.7 billion yen increase
income: yen from the same period last
year)
The electronic devices business saw an increase in orders from
the same period of the previous fiscal year due mainly to
recovering demand for power modules, and total sales increased by
15% compared to the same period of the previous fiscal year.
As a result, operating income increased by 0.7 billion yen
compared to the same period of the previous fiscal year due
primarily to an increase in sales.
Home Appliances
Total sales: 227.0 billion (3% increase from the same
yen period last year)
Operating 8.9 billion (6.0 billion yen decrease
income: yen from the same period last
year)
The home appliances business saw an increase in sales of 3%
compared to the same period of the previous fiscal year due mainly
to an increase in sales of air conditioners in the European and
Chinese markets, as well as residential and industrial air
conditioners in Japan.
Operating income decreased by 6.0 billion yen compared to the
same period of the previous fiscal year primarily due to the
negative influences caused by the stronger yen.
Others
Total sales: 177.8 billion (4% increase from the same
yen period last year)
Operating 5.9 billion (0.4 billion yen decrease
income: yen from the same period last
year)
Sales increased by 4% compared to the same period of the
previous fiscal year mainly due to an increase in sales among
affiliated companies involved in materials procurement.
Operating income decreased by 0.4 billion yen from the same
period of the previous fiscal year due primarily to a shift in
project portfolios.
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 82.5 billion
yen to 3,977.3 billion yen. The change in the balance of total
assets was mainly due to a 19.7 billion yen decrease in cash and
cash equivalents and a 167.4 billion yen decrease in trade
receivables due to factors including credit collection, on the
other hand, work-in-process to be recorded in commensurate with
progress in job orders under pertinent contracts increased by 113.8
billion yen.
Total liabilities decreased from the end of the previous fiscal
year by 186.5 billion yen to 1,935.9 billion yen due mainly to a
79.6 billion yen decrease in the outstanding balance of trade
payables and a 24.6 billion yen decrease in retirement and
severance benefits, mainly resulting from an increase in pension
assets following a rise in stock prices. The outstanding balances
of debts and corporate bonds decreased by 31.9 billion yen from the
end of the previous fiscal year to 372.0 billion yen. The ratio of
interest bearing debt to total assets declined to 9.4%, which was a
0.6 point decrease compared to the end of the previous fiscal
year.
Mitsubishi Electric Corporation shareholders' equity increased
by 101.6 billion yen compared to the end of the previous fiscal
year to 1,940.4 billion yen. The shareholders' equity ratio was
recorded at 48.8%, representing a 3.5 point increase compared to
the end of the previous fiscal year. These changes referred above
primarily resulted from recording a net income attributable to
Mitsubishi Electric Corporation of 135.3 billion yen, and an
increase in accumulated other comprehensive income by 25.2 billion
yen caused by such factors as the rise in stock prices, despite a
decrease in dividend payment of 57.9 billion yen.
Cash flows from operating activities increased by 6.0 billion
yen compared to the same period of the previous fiscal year to
171.5 billion yen (cash in). Cash flows from investing activities
decreased by 98.4 billion yen compared to the same period of the
previous fiscal year to 90.8 billion yen (cash out) due to a
decrease in proceeds from the purchases of short-term investments
and investment securities and other factors. As a result, free cash
flow was 80.6 billion yen (cash in). Cash flows from financing
activities were 97.7 billion yen (cash out) mainly due to dividend
payment.
Forecast for Fiscal 2017 (year ending March 31, 2017)
The consolidated earnings forecast for fiscal 2017, ending March
31, 2017, has been revised from the previous forecast announced on
October 31, 2016, primarily due to improved performance forecast in
the Industrial Automation Systems and Electric Devices segments,
resulted mainly by the company's revised terms of foreign currency
rates in which it sees the yen weaker in and after the fourth
quarter of fiscal 2017.
Consolidated Earnings Forecast for Fiscal 2017
Consolidated Previous forecast Current forecast
(announced October 31)
---------------------------- ------------------------ ------------------------------------------------------
Net sales: 4,150.0 billion yen 4,200.0 billion yen (4% decrease from fiscal 2016)
---------------------------- ------------------------ -------------------- --------------------------------
Operating income: 250.0 billion yen 255.0 billion yen (15% decrease from fiscal 2016)
---------------------------- ------------------------ -------------------- --------------------------------
Income before income taxes: 265.0 billion yen 275.0 billion yen (14% decrease from fiscal 2016)
---------------------------- ------------------------ -------------------- --------------------------------
Net income attributable to 185.0 billion yen 190.0 billion yen (17% decrease from fiscal 2016)
Mitsubishi Electric Corp.:
---------------------------- ------------------------ -------------------- --------------------------------
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.
----------------------------------------------------------------------------
Exchange rates in and after the fourth quarter of fiscal 2017
have been revised to 110 yen to the US dollar, ten yen weaker than
the previous rate, and 115 yen to the euro, five yen weaker.
Consolidated Financial Results Summary
1. Consolidated First 9 Months Results
(In billions of yen except where noted)
FY '16 9 months FY '17 9 months B - B/A
(A) (B) A (%)
(Apr. 1, (Apr. 1,
2015 - 2016 -
Dec. 31, 2015) Dec. 31, 2016)
------------------------- ---------------- ---------------- -------- -----
Net sales 3,091.6 2,947.1 (144.4) 95
------------------------- ---------------- ---------------- -------- -----
Operating income 207.3 175.5 (31.7) 85
------------------------- ---------------- ---------------- -------- -----
Income before
income taxes 218.7 196.1 (22.5) 90
------------------------- ---------------- ---------------- -------- -----
Net income attributable
to Mitsubishi
Electric Corp. 152.8 135.3 (17.4) 89
------------------------- ---------------- ----------------
Basic net income
per share attributable
to Mitsubishi (8.(12)
Electric Corp. 71.(18) yen 63.(06) yen yen) 89
------------------------- ---------------- ---------------- -------- -----
2. Consolidated Third-quarter Results
(In billions of yen except where noted)
FY '16 Q3 FY '17 Q3 B - B/A
(A) (B) A
(Oct. 1, (Oct. 1, (%)
2015 - 2016 -
Dec. 31, Dec. 31, 2016)
2015)
------------------------- ------------ ---------------- -------- -----
Net sales 1,028.3 974.7 (53.5) 95
------------------------- ------------ ---------------- -------- -----
Operating income 80.3 53.8 (26.4) 67
------------------------- ------------ ---------------- -------- -----
Income before
income taxes 85.6 72.4 (13.2) 85
------------------------- ------------ ---------------- -------- -----
Net income attributable
to Mitsubishi
Electric Corp. 59.8 46.9 (12.8) 78
------------------------- ------------ ----------------
Basic net income
per share attributable
to Mitsubishi (5.(99)
Electric Corp. 27.(89) yen 21.(90) yen yen) 79
------------------------- ------------ ---------------- -------- -----
Notes:
1) Consolidated financial charts made in accordance with U.S.
GAAP.
2) The Company has 218 consolidated subsidiaries.
Consolidated Profit and Loss Statement (First 9 Months, Fiscal
2017)
(In millions of yen)
FY '16 9 FY '17 9
months months
(Apr. 1, (Apr. 1,
2015 - 2016 -
Dec. 31, Dec. 31,
2015) 2016)
(A) % of (B) % of B - A B/A
total total (%)
---------- -------
Net sales 3,091,608 100.0 2,947,113 100.0 (144,495) 95
------------------------------ ---------- ------- ---------- ------- ---------- -----
Cost of sales 2,142,075 69.3 2,042,322 69.3 (99,753) 95
------------------------------ ---------- ------- ---------- ------- ---------- -----
Selling, general
and
administrative
expenses 738,214 23.9 727,270 24.6 (10,944) 99
Loss on impairment
of
long-lived assets 4,004 0.1 1,944 0.1 (2,060) 49
Operating income 207,315 6.7 175,577 6.0 (31,738) 85
------------------------------ ---------- ------- ---------- ------- ---------- -----
Other income 41,027 1.3 46,646 1.6 5,619 114
------------------------------ ---------- ------- ---------- ------- ---------- -----
Interest and dividends 6,384 0.2 6,330 0.2 (54) 99
------------------------------ ---------- ------- ---------- ------- ---------- -----
Equity in earnings
of
affiliated companies 20,102 0.6 14,351 0.5 (5,751) 71
------------------------------ ---------- ------- ---------- ------- ---------- -----
Other 14,541 0.5 25,965 0.9 11,424 179
------------------------------ ---------- ------- ---------- ------- ---------- -----
Other expenses 29,599 0.9 26,028 0.9 (3,571) 88
------------------------------ ---------- ------- ---------- ------- ---------- -----
Interest 2,670 0.1 2,154 0.1 (516) 81
------------------------------ ---------- ------- ---------- ------- ---------- -----
Other 26,929 0.8 23,874 0.8 (3,055) 89
Income before income
taxes 218,743 7.1 196,195 6.7 (22,548) 90
------------------------------ ---------- ------- ---------- ------- ---------- -----
Income taxes 56,000 1.8 51,695 1.8 (4,305) 92
------------------------------ ---------- ------- ---------- ------- ---------- -----
Net income 162,743 5.3 144,500 4.9 (18,243) 89
------------------------------ ---------- ------- ---------- ------- ---------- -----
Net income attributable
to
the noncontrolling
interests 9,941 0.4 9,161 0.3 (780) 92
------------------------------ ---------- ------- ---------- ------- ---------- -----
Net income attributable
to
Mitsubishi Electric
Corp. 152,802 4.9 135,339 4.6 (17,463) 89
------------------------------ ---------- ------- ---------- ------- ---------- -----
Consolidated Comprehensive Income Statement (First 9 Months,
Fiscal 2017)
(In millions of yen)
FY '16 FY '17 B -
9 months 9 months A
(A) (B)
(Apr. 1, (Apr. 1,
2015 - 2016 -
Dec. 31, Dec. 31,
2015) 2016)
----------------------------------- ---------- ---------- ---------
Net income 162,743 144,500 (18,243)
------------------------------------ ---------- ---------- ---------
Other comprehensive income
(loss), net of tax
------------------------------------ ---------- ---------- ---------
Foreign currency translation
adjustments (36,930) (26,781) 10,149
----------------------------------- ---------- ---------- ---------
Pension liability adjustments (8,267) 23,386 31,653
----------------------------------- ---------- ---------- ---------
Unrealized gains (losses)
on securities (3,215) 26,519 29,734
----------------------------------- ---------- ---------- ---------
Unrealized gains on derivative
instruments 31 182 151
----------------------------------- ---------- ---------- ---------
Total (48,381) 23,306 71,687
------------------------------------ ---------- ---------- ---------
Comprehensive income 114,362 167,806 53,444
------------------------------------ ---------- ---------- ---------
Comprehensive income attributable
to
the noncontrolling interests 5,719 7,248 1,529
------------------------------------ ---------- ---------- ---------
Comprehensive income attributable
to
Mitsubishi Electric Corp. 108,643 160,558 51,915
------------------------------------ ---------- ---------- ---------
Consolidated Profit and Loss Statement (Third Quarter, Fiscal
2017)
(In millions of yen)
FY '16 Q3 FY '17 Q3
(Oct. 1, (Oct. 1,
2015 - 2016 -
Dec. 31, Dec. 31,
2015) 2016)
(A) % of (B) % of B - A B/A
total total (%)
---------- -------
Net sales 1,028,323 100.0 974,759 100.0 (53,564) 95
------------------------------ ---------- ------- -------- ------- --------- -----
Cost of sales 709,305 69.0 683,967 70.2 (25,338) 96
------------------------------ ---------- ------- -------- ------- --------- -----
Selling, general
and
administrative
expenses 238,717 23.2 236,962 24.3 (1,755) 99
------------------------------
Operating income 80,301 7.8 53,830 5.5 (26,471) 67
------------------------------ ---------- ------- -------- ------- --------- -----
Other income 14,454 1.4 19,498 2.0 5,044 135
------------------------------ ---------- ------- -------- ------- --------- -----
Interest and dividends 2,105 0.2 2,068 0.2 (37) 98
------------------------------ ---------- ------- -------- ------- --------- -----
Equity in earnings
of
affiliated companies 6,841 0.7 4,828 0.5 (2,013) 71
------------------------------ ---------- ------- -------- ------- --------- -----
Other 5,508 0.5 12,602 1.3 7,094 229
------------------------------ ---------- ------- -------- ------- --------- -----
Other expenses 9,070 0.9 859 0.1 (8,211) 9
------------------------------ ---------- ------- -------- ------- --------- -----
Interest 840 0.1 592 0.1 (248) 70
------------------------------ ---------- ------- -------- ------- --------- -----
Other 8,230 0.8 267 0.0 (7,963) 3
Income before income
taxes 85,685 8.3 72,469 7.4 (13,216) 85
------------------------------ ---------- ------- -------- ------- --------- -----
Income taxes 22,075 2.1 22,537 2.3 462 102
------------------------------ ---------- ------- -------- ------- --------- -----
Net income 63,610 6.2 49,932 5.1 (13,678) 78
------------------------------ ---------- ------- -------- ------- --------- -----
Net income attributable
to
the noncontrolling
interests 3,733 0.4 2,935 0.3 (798) 79
------------------------------ ---------- ------- -------- ------- --------- -----
Net income attributable
to
Mitsubishi Electric
Corp. 59,877 5.8 46,997 4.8 (12,880) 78
------------------------------ ---------- ------- -------- ------- --------- -----
Consolidated Comprehensive Income Statement (Third Quarter,
Fiscal 2017)
(In millions of yen)
FY '16 FY '17 B -
Q3 (A) Q3 (B) A
(Oct. 1, (Oct. 1,
2015 - 2016 -
Dec. 31, Dec. 31,
2015) 2016)
---- -------------------------------- ---------- ---------- ---------
Net income 63,610 49,932 (13,678)
-------------------------------------- ---------- ---------- ---------
Other comprehensive income
(loss), net of tax
-------------------------------------- ---------- ---------- ---------
Foreign currency translation
adjustments (4,472) 66,979 71,451
------------------------------------- ---------- ---------- ---------
Pension liability adjustments 17,710 28,162 10,452
------------------------------------- ---------- ---------- ---------
Unrealized gains on securities 26,938 46,710 19,772
------------------------------------- ---------- ---------- ---------
Unrealized gains on derivative
instruments 48 224 176
------------------------------------- ---------- ---------- ---------
Total 40,224 142,075 101,851
-------------------------------------- ---------- ---------- ---------
Comprehensive income 103,834 192,007 88,173
-------------------------------------- ---------- ---------- ---------
Comprehensive income attributable
to
the noncontrolling interests 3,483 9,844 6,361
-------------------------------------- ---------- ---------- ---------
Comprehensive income attributable
to
Mitsubishi Electric Corp. 100,351 182,163 81,812
-------------------------------------- ---------- ---------- ---------
Consolidated Balance Sheet
(In millions of yen)
FY '16 FY ' 17 B - A
(A)
(ended 9 months
Mar. 31, (B)
2016)
(ended
Dec. 31,
2016)
------------------------------------ ----------- ----------- ----------
(Assets)
Current assets 2,551,863 2,476,428 (75,435)
------------------------------------ ----------- ----------- ----------
Cash and cash equivalents 574,170 554,452 (19,718)
------------------------------------ ----------- ----------- ----------
Trade receivables 1,035,168 868,635 (166,533)
------------------------------------ ----------- ----------- ----------
Inventories 644,127 758,006 113,879
------------------------------------ ----------- ----------- ----------
Prepaid expenses and other
current assets 298,398 295,335 (3,063)
------------------------------------ ----------- ----------- ----------
Long-term trade receivables 4,661 3,703 (958)
------------------------------------ ----------- ----------- ----------
Investments 537,706 568,770 31,064
------------------------------------ ----------- ----------- ----------
Net property, plant and
equipment 712,599 720,026 7,427
------------------------------------ ----------- ----------- ----------
Other assets 253,112 208,416 (44,696)
------------------------------------ ----------- ----------- ----------
Total assets 4,059,941 3,977,343 (82,598)
==================================== =========== =========== ==========
(Liabilities)
Current liabilities 1,507,943 1,395,126 (112,817)
------------------------------------ ----------- ----------- ----------
Bank loans and current
portion of long-term debt 116,532 120,302 3,770
------------------------------------ ----------- ----------- ----------
Trade payables 773,714 694,047 (79,667)
------------------------------------ ----------- ----------- ----------
Other current liabilities 617,697 580,777 (36,920)
------------------------------------ ----------- ----------- ----------
Long-term debt 287,507 251,789 (35,718)
------------------------------------ ----------- ----------- ----------
Retirement and severance
benefits 229,750 205,086 (24,664)
------------------------------------ ----------- ----------- ----------
Other fixed liabilities 97,238 83,905 (13,333)
------------------------------------ ----------- ----------- ----------
Total liabilities 2,122,438 1,935,906 (186,532)
------------------------------------ ----------- ----------- ----------
(Equity)
Mitsubishi Electric Corp.
shareholders' equity 1,838,773 1,940,407 101,634
------------------------------------ ----------- ----------- ----------
Common stock 175,820 175,820 -
------------------------------------ ----------- ----------- ----------
Capital surplus 211,999 211,891 (108)
------------------------------------ ----------- ----------- ----------
Retained earnings 1,502,027 1,579,403 77,376
------------------------------------ ----------- ----------- ----------
Accumulated other comprehensive
income (loss) (50,699) (25,480) 25,219
------------------------------------ ----------- ----------- ----------
Treasury stock at cost (374) (1,227) (853)
------------------------------------ ----------- ----------- ----------
Noncontrolling interests 98,730 101,030 2,300
------------------------------------ ----------- ----------- ----------
Total equity 1,937,503 2,041,437 103,934
------------------------------------ ----------- ----------- ----------
Total liabilities and equity 4,059,941 3,977,343 (82,598)
==================================== =========== =========== ==========
Balance of Debt 404,039 372,091 (31,948)
------------------------------------ ----------- ----------- ----------
Accumulated other comprehensive
income (loss):
------------------------------------ ----------- ----------- ----------
Foreign currency translation
adjustments 39,847 15,072 (24,775)
------------------------------------ ----------- ----------- ----------
Pension liability adjustments (184,231) (160,845) 23,386
------------------------------------ ----------- ----------- ----------
Unrealized gains on securities 93,742 120,201 26,459
------------------------------------ ----------- ----------- ----------
Unrealized gains (losses)
on derivative
instruments (57) 92 149
------------------------------------ ----------- ----------- ----------
Consolidated Cash Flow Statement
(In millions of yen)
FY '16 FY '17 B - A
9 months 9 months
(Apr. 1, (Apr. 1,
2015 - 2016 -
Dec. 31, Dec. 31,
2015) 2016)
(A) (B)
---- ------------------------------- ---------- ---------- ---------
I Cash flows from operating
activities
1 Net income 162,743 144,500 (18,243)
---- ----------
2 Adjustments to reconcile
net income to net cash
provided by operating
activities
(1) Depreciation of tangible
fixed assets and other 105,949 101,452 (4,497)
---- ------------------------------- ---------- ---------- ---------
(2) Decrease in trade
receivables 189,355 149,645 (39,710)
---- ------------------------------- ---------- ---------- ---------
(3) Decrease (increase)
in inventories (82,509) (118,535) (36,026)
---- ------------------------------- ---------- ---------- ---------
(4) Increase (decrease)
in trade payables (118,264) (60,735) 57,529
---- ------------------------------- ---------- ---------- ---------
(5) Other, net (91,785) (44,790) 46,995
---- ------------------------------- ---------- ---------- ---------
Net cash provided by operating
activities 165,489 171,537 6,048
---- ------------------------------- ---------- ---------- ---------
II Cash flows from investing
activities
1 Capital expenditure (126,477) (114,351) 12,126
---- ------------------------------- ---------- ---------- ---------
Proceeds from sale of
2 property, plant and equipment 1,716 6,194 4,478
---- ------------------------------- ---------- ---------- ---------
Purchase of short-term
investments and investment
securities (net of cash
3 acquired) (57,394) (3,906) 53,488
---- ------------------------------- ---------- ---------- ---------
Proceeds from sale of
short-term investments
and investment securities
4 (net of cash disposed) 4,925 19,181 14,256
---- ------------------------------- ---------- ---------- ---------
5 Other, net (12,041) 2,017 14,058
---- ------------------------------- ---------- ---------- ---------
Net cash used in investing
activities (189,271) (90,865) 98,406
---------- ---------- ---------
I+II Free cash flow (23,782) 80,672 104,454
------------------------------------- ---------- ---------- ---------
III Cash flows from financing
activities
Proceeds from long-term
1 debt 80,105 147 (79,958)
---- ------------------------------- ---------- ---------- ---------
Repayment of long-term
2 debt (71,367) (33,074) 38,293
---- ------------------------------- ---------- ---------- ---------
Increase (decrease) in
3 bank loans, net (1,458) (652) 806
---- ------------------------------- ---------- ---------- ---------
4 Dividends paid (57,963) (57,963) 0
---- ------------------------------- ---------- ---------- ---------
5 Purchase of treasury stock (36) (1,096) (1,060)
---- ------------------------------- ---------- ---------- ---------
Reissuance of treasury
6 stock 0 0 0
---- ------------------------------- ---------- ---------- ---------
7 Other, net (4,396) (5,154) (758)
---- ------------------------------- ---------- ---------- ---------
Net cash provided by (used
in) financing activities (55,115) (97,792) (42,677)
---- ------------------------------- ---------- ---------- ---------
Effect of exchange rate
changes on cash and
IV cash equivalents (11,609) (2,598) 9,011
---- ------------------------------- ---------- ---------- ---------
Net increase (decrease)
in cash and
V cash equivalents (90,506) (19,718) 70,788
---- ------------------------------- ---------- ---------- ---------
Cash and cash equivalents
VI at beginning of period 568,517 574,170 5,653
---------- ---------- ---------
Cash and cash equivalents
VII at end of period 478,011 554,452 76,441
---- ------------------------------- ---------- ---------- ---------
Consolidated Segment Information (First 9 Months, Fiscal
2017)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment FY '16 9 months FY '17 9 months C - A D - C/A
(Apr. 1, 2015 (Apr. 1, 2016 B (%)
- -
Dec. 31, 2015) Dec. 31, 2016)
------------------ ---------------------- ---------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(B) (D)
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
Energy and
Electric
Systems 808,616 18,398 784,744 13,758 (23,872) (4,640) 97
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
Industrial
Automation
Systems 988,751 127,179 951,988 102,569 (36,763) (24,610) 96
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
Information
and
Communication
Systems 363,895 4,445 285,462 4,451 (78,433) 6 78
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
Electronic
Devices 166,155 18,960 135,850 5,116 (30,305) (13,844) 82
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
Home Appliances 731,334 48,182 746,404 57,625 15,070 9,443 102
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
Others 509,609 13,688 514,571 15,297 4,962 1,609 101
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
Subtotal 3,568,360 230,852 3,419,019 198,816 (149,341) (32,036) 96
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
Eliminations
and other (476,752) (23,537) (471,906) (23,239) 4,846 298 -
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
Total 3,091,608 207,315 2,947,113 175,577 (144,495) (31,738) 95
------------------ ---------- ---------- ---------- ---------- ---------- --------- -----
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location FY '16 9 months FY '17 9 months C - A D - C/A
(Apr. 1, 2015 (Apr. 1, 2016 B (%)
- -
Dec. 31, 2015) Dec. 31, 2016)
----------------- ---------------------- ---------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(B) (D)
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Japan 2,469,056 118,404 2,325,814 86,041 (143,242) (32,363) 94
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
North America 331,719 4,825 302,591 4,809 (29,128) (16) 91
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Asia (excluding
Japan) 783,040 69,727 756,770 69,912 (26,270) 185 97
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Europe 302,666 12,914 313,419 11,023 10,753 (1,891) 104
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Others 37,171 1,187 33,751 1,740 (3,420) 553 91
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Subtotal 3,923,652 207,057 3,732,345 173,525 (191,307) (33,532) 95
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Eliminations (832,044) 258 (785,232) 2,052 46,812 1,794 -
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
Total 3,091,608 207,315 2,947,113 175,577 (144,495) (31,738) 95
----------------- ---------- ---------- ---------- ---------- ---------- --------- -----
*Note: Inter-segment sales are included in the above chart.
3. Sales by Location of Customers
(In millions of yen)
Location of Customers FY '16 9 FY '17 9 B - A B/A
months months (%)
(Apr. 1, (Apr. 1,
2015 - 2016 -
Dec. 31, Dec. 31,
2015) 2016)
------------------------- ---------- -----
Sales % of Sales % of
(A) total (B) total
net net
sales sales
----------------------- ---------- ------- ---------- ------- ---------- -----
Japan 1,681,801 54.4 1,616,573 54.9 (65,228) 96
------------------------ ---------- ------- ---------- ------- ---------- -----
North America 331,635 10.7 304,670 10.3 (26,965) 92
----------------------- ---------- ------- ---------- ------- ---------- -----
Asia
(excluding
Japan) 729,255 23.6 680,074 23.1 (49,181) 93
----------------------- ---------- ------- ---------- ------- ---------- -----
Europe 282,554 9.1 286,728 9.7 4,174 101
----------------------- ---------- ------- ---------- ------- ---------- -----
Others 66,363 2.2 59,068 2.0 (7,295) 89
----------------------- ---------- ------- ---------- ------- ---------- -----
Total overseas
sales 1,409,807 45.6 1,330,540 45.1 (79,267) 94
------------------------ ---------- ------- ---------- ------- ---------- -----
Consolidated
total 3,091,608 100.0 2,947,113 100.0 (144,495) 95
------------------------- ---------- ------- ---------- ------- ---------- -----
Consolidated Segment Information (Third Quarter, Fiscal
2017)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment FY '16 Q3 FY '17 Q3 C - A D - C/A
B
(Oct. 1, 2015 (Oct. 1, 2016 (%)
- -
Dec. 31, 2015) Dec. 31, 2016)
------------------ ---------------------- --------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(B) (D)
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Energy and
Electric
Systems 284,838 14,625 259,273 4,576 (25,565) (10,049) 91
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Industrial
Automation
Systems 327,231 43,260 334,368 40,458 7,137 (2,802) 102
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Information
and
Communication
Systems 139,858 8,260 87,196 583 (52,662) (7,677) 62
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Electronic
Devices 42,947 2,609 49,313 3,342 6,366 733 115
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Home Appliances 220,196 14,988 227,007 8,957 6,811 (6,031) 103
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Others 171,125 6,321 177,800 5,902 6,675 (419) 104
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Subtotal 1,186,195 90,063 1,134,957 63,818 (51,238) (26,245) 96
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Eliminations
and other (157,872) (9,762) (160,198) (9,988) (2,326) (226) -
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
Total 1,028,323 80,301 974,759 53,830 (53,564) (26,471) 95
------------------ ---------- ---------- ---------- ---------- --------- --------- -----
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location FY '16 Q3 FY '17 Q3 C - A D - C/A
B
(Oct. 1, 2015 (Oct. 1, 2016 (%)
- -
Dec. 31, 2015) Dec. 31, 2016)
----------------- ---------------------- --------- --------- -----
Sales Operating Sales Operating
(A) income (C) income
(B) (D)
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Japan 844,016 57,185 785,379 37,679 (58,637) (19,506) 93
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
North America 108,381 386 98,735 689 (9,646) 303 91
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Asia (excluding
Japan) 238,177 21,447 250,617 20,642 12,440 (805) 105
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Europe 95,606 3,159 100,356 2,380 4,750 (779) 105
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Others 12,265 612 11,732 863 (533) 251 96
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Subtotal 1,298,445 82,789 1,246,819 62,253 (51,626) (20,536) 96
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Eliminations (270,122) (2,488) (272,060) (8,423) (1,938) (5,935) -
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
Total 1,028,323 80,301 974,759 53,830 (53,564) (26,471) 95
----------------- ---------- ---------- ---------- ---------- --------- --------- -----
*Note: Inter-segment sales are included in the above chart
3. Sales by Location of Customers
(In millions of yen)
Location of Customers FY '16 Q3 FY '17 Q3 B - A B/A
(%)
(Oct. 1, (Oct. 1,
2015 - 2016 -
Dec. 31, Dec. 31,
2015) 2016)
------------------------- --------- -----
Sales % of Sales % of
(A) total (B) total
net net
sales sales
----------------------- ---------- ------- -------- ------- --------- -----
Japan 576,280 56.0 534,678 54.9 (41,602) 93
------------------------ ---------- ------- -------- ------- --------- -----
North America 108,699 10.6 101,932 10.4 (6,767) 94
----------------------- ---------- ------- -------- ------- --------- -----
Asia
(excluding
Japan) 234,295 22.8 229,080 23.5 (5,215) 98
----------------------- ---------- ------- -------- ------- --------- -----
Europe 88,458 8.6 90,282 9.3 1,824 102
----------------------- ---------- ------- -------- ------- --------- -----
Others 20,591 2.0 18,787 1.9 (1,804) 91
----------------------- ---------- ------- -------- ------- --------- -----
Total overseas
sales 452,043 44.0 440,081 45.1 (11,962) 97
------------------------ ---------- ------- -------- ------- --------- -----
Consolidated
total 1,028,323 100.0 974,759 100.0 (53,564) 95
------------------------- ---------- ------- -------- ------- --------- -----
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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