TIDMMEL
RNS Number : 4664E
Mitsubishi Electric Corporation
28 October 2022
FOR IMMEDIATE RELEASE No. 3556
Investor Relations Inquiries Media Inquiries
Sachiko Masuda
Investor Relations Group, Corporate Public Relations Division
Finance Division
Mitsubishi Electric Corporation Mitsubishi Electric Corporation
Tel: +81-3-3218-2391 Tel: +81-3-3218-2848
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 Half and Second Quarter of Fiscal 2023
TOKYO, October 28, 2022 - Mitsubishi Electric Corporation
(TOKYO: 6503) announced today its consolidated financial results
for the first half and second quarter, ended September 30, 2022, of
the current fiscal year ending March 31, 2023 (fiscal 2023).
1. Consolidated Half-year Results (April 1, 2022 - September 30,
2022)
Revenue: 2,339.5 billion
yen (9% increase year-on-year)
Operating profit: 80.5 billion
yen (42% decrease year-on-year)
Profit before income taxes: 103.1 billion
yen (31% decrease year-on-year)
Net profit attributable
to
Mitsubishi Electric Corp. billion
stockholders: 74.8 yen (29% decrease year-on-year)
The economy in the first half of fiscal 2023, from April through
September 2022, generally continued to see recovery in the
corporate and household sectors in the U.S. In China, there was
downward pressure due to the impact of lockdown caused by the
expansion of COVID-19, and the pace of subsequent recovery stayed
slow. In Japan, gradual recovery continued primarily in the
household sector. In Europe, the paces of recovery were even slower
in the corporate and household sectors. There was also the impact
of the rise in some material prices and high logistics costs, as
well as the prolonged electronic components shortage.
Revenue
Revenue increased by 201.1 billion yen year-on-year to 2,339.5
billion yen owing primarily to the weaker yen, despite a decrease
in revenue in the Infrastructure segment. The Life segment saw an
increase in the building systems business in Asia and Japan, and
the air conditioning systems & home products business also
increased due mainly to a recovery in demand for air conditioners
in Asia (excluding China), Europe and Japan. The Industry and
Mobility segment saw an increase in the factory automation systems
business due mainly to an increase in global demand for capital
expenditures related to digital equipment and decarbonization, and
the automotive equipment business also increased due to robust
demand for electric vehicle-related equipment. The Business
Platform segment saw an increase in the information systems &
network service business due mainly to increases in the IT
infrastructure service and the system integrations businesses. The
semiconductor & devices business also increased due to robust
demand for power modules and optical communication devices.
Operating profit
Operating profit decreased by 57.3 billion yen year-on-year to
80.5 billion yen due mainly to decreases in the Life segment, the
Infrastructure segment and the Industry and Mobility segment,
despite an increase in the Business Platform segment. Operating
profit ratio decreased by 3.0 points year-on-year to 3.4% due
mainly to deteriorated cost ratio.
The cost ratio deteriorated by 2.3 points year-on-year despite
the improvement owing to the weaker yen, as there was the impact of
the rise in some material prices, the Life segment deteriorated due
to the lower production level caused by the rise in logistics costs
and the electronic components shortage, and the profitability of
the Infrastructure segment also deteriorated. Selling, general and
administrative expenses increased by 62.0 billion yen year-on-year,
and the selling, general and administrative expenses to revenue
ratio deteriorated by 0.7 points year-on-year. Other profit (loss)
and other profit (loss) to revenue ratio remained substantially
unchanged year-on-year.
Profit before income taxes
Profit before income taxes decreased by 45.2 billion yen
year-on-year to 103.1 billion yen due primarily to a decrease in
operating profit. The profit before income taxes to revenue ratio
was 4.4%.
Net profit attributable to Mitsubishi Electric Corporation
stockholders
Net profit attributable to Mitsubishi Electric Corporation
stockholders decreased by 30.0 billion yen year-on-year to 74.8
billion yen due mainly to a decrease in profit before income taxes.
The net profit attributable to Mitsubishi Electric Corporation
stockholders to revenue ratio was 3.2%.
Consolidated Financial Results by Business Segment (First Half,
Fiscal 2023)
Infrastructure
Revenue: 402.0 billion (2% decrease year-on-year; recorded
yen 409.5 billion yen)
Operating profit (15.3 billion (24.1 billion yen decline year-on-year;
(loss): yen) recorded 8.7 billion yen)
The market for the public utility systems business saw robust
investment in the public utility area outside Japan, while there
was a continuing trend of railway companies in Japan revising their
capital expenditure due to the impact of COVID-19. In this
environment, orders won by the business increased year-on-year due
primarily to an increase in the public utility area outside Japan,
while revenue decreased year-on-year due mainly to a decrease in
the transportation systems business in Japan.
The market for the energy systems business continued to see
capital expenditures of power companies in Japan and robust demand
for power supply stabilization in the expansion of renewable
energy. In this environment, orders won by the business increased
year-on-year due primarily to increases in the power distribution
and the power generation businesses in Japan, while revenue
decreased year-on-year due mainly to a decrease in the power
generation business in Japan.
The defense & space systems business saw a decrease in
orders year-on-year due primarily to a decrease in large-scale
projects for the defense systems business, while revenue increased
year-on-year due mainly to an increase in large-scale projects for
the defense systems business.
As a result, revenue for this segment decreased by 2%
year-on-year to 402.0 billion yen.
Operating profit declined by 24.1 billion yen year-on-year to a
loss of 15.3 billion yen due primarily to a decrease in revenue, a
shift in project portfolios and lower profitability in the defense
& space systems business.
Industry and Mobility
Revenue: 794.9 billion (13% increase year-on-year; recorded
yen 701.8 billion yen)
Operating profit: 43.9 billion (11.2 billion yen decrease year-on-year;
yen recorded 55.2 billion yen)
The market for the factory automation systems business saw
robust demand worldwide primarily for capital expenditures related
to digital equipment such as semiconductors and electronic
components, as well as products in the decarbonization area such as
lithium-ion batteries. In this environment, the business saw
increases in both orders and revenue year-on-year.
The market for the automotive equipment business saw sales of
new cars remaining substantially unchanged year-on-year and robust
demand for electric vehicle-related equipment in line with the
expansion of the electric vehicle market, despite the semiconductor
shortage. In this environment, the business saw increases in both
orders and revenue year-on-year due primarily to the weaker yen and
increases in electric-vehicle related equipment such as motors and
inverters as well as electrical components.
As a result, revenue for this segment increased by 13%
year-on-year to 794.9 billion yen.
Operating profit decreased by 11.2 billion yen year-on-year to
43.9 billion yen due mainly to the rise in material prices and
logistics costs, despite the weaker yen.
Life
Revenue: 940.1 billion (11% increase year-on-year; recorded
yen 846.8 billion yen)
Operating profit: 34.0 billion (35.7 billion yen decrease year-on-year;
yen recorded 69.7 billion yen)
The market for the building systems business continued to see
recovery from the sluggish market stemming from COVID-19. In this
environment, the business saw increases in both orders and revenue
year-on-year due primarily to the weaker yen and an increase in
Asia and Japan.
The market for the air conditioning systems & home products
business saw recovery from the impact of Shanghai's lockdown and an
improvement of the situation with regard to the electronic
components shortage in and after the second quarter. In this
environment, the revenue for the business increased year-on-year
due mainly to the weaker yen and an increase in air conditioners in
Asia (excluding China), Europe and Japan.
As a result, revenue for this segment increased by 11%
year-on-year to 940.1 billion yen.
Operating profit decreased by 35.7 billion yen year-on-year to
34.0 billion yen due primarily to the rise in material prices and
logistics costs as well as lower production level in the first
quarter, despite the weaker yen.
Business Platform
Revenue: 206.8 billion (10% increase year-on-year; recorded
yen 187.3 billion yen)
Operating profit: 19.4 billion (9.8 billion yen increase year-on-year;
yen recorded 9.5 billion yen)
The market for the information systems & network service
business saw robust demand due mainly to the restarts of projects
delayed in the COVID-19 pandemic, despite the semiconductor
shortage. In this environment, the business saw an increase in both
orders and revenue due mainly to increases in the IT infrastructure
service and the system integrations businesses.
The market for the semiconductor & device business saw
robust demand for power modules used in consumer and industrial
applications as well as optical communication devices. In this
environment, orders won by the business decreased year-on-year due
primarily to the end of the TFT-LCD module business, while revenue
increased year-on-year due primarily to the weaker yen and
increases in power modules used in consumer and industrial
applications, as well as high frequency and optical devices,
particularly in optical communication devices.
As a result, revenue for this segment increased by 10%
year-on-year to 206.8 billion yen.
Operating profit increased by 9.8 billion yen year-on-year to
19.4 billion yen due mainly to the weaker yen and an increase in
revenue.
Others
Revenue: 393.0 billion (14% increase year-on-year; recorded
yen 345.9 billion yen)
Operating profit: 14.3 billion (4.8 billion yen increase year-on-year;
yen recorded 9.4 billion yen)
Revenue increased by 14% year-on-year to 393.0 billion yen due
primarily to increases in materials procurement and logistics.
Operating profit increased by 4.8 billion yen year-on-year to
14.3 billion yen due mainly to an increase in revenue.
2. Consolidated Second-quarter Results (July 1, 2022 - September
30, 2022)
Revenue: 1,271.8 billion (19% increase year-on-year)
yen
Operating profit: 46.5 billion (15% decrease year-on-year)
yen
Profit before income taxes: 56.2 billion (5% decrease year-on-year)
yen
Net profit attributable
to
Mitsubishi Electric Corp. billion
stockholders: 41.3 yen (4% decrease year-on-year)
Revenue
Revenue increased by 199.9 billion yen year-on-year to 1,271.8
billion yen owing primarily to the weaker yen.
The Life segment saw an increase in the building systems
business due to an increase in Asia and Japan, and the air
conditioning systems & home products business also increased
due mainly to a recovery in air conditioners in Japan, North
America and Asia. The Industry and Mobility segment saw an increase
in the factory automation systems business due to an increase in
global demand primarily for capital expenditures related to digital
equipment and decarbonization, and the automotive equipment
business increased due to an increase in sales of new cars globally
year-on-year, particularly in China and India, and robust demand
for electric vehicle-related equipment. The Business Platform
segment saw the information systems & network service business
remaining substantially unchanged year-on-year, and the
semiconductor & device business increased due mainly to robust
demand for power modules and optical communication devices. The
Infrastructure segment saw a decrease in the energy systems
business, while the public utility systems business remained
substantially unchanged year-on-year and the defense & space
systems business increased.
Operating profit
Operating profit decreased by 8.5 billion yen year-on-year to
46.5 billion yen due mainly to decreases in the Infrastructure
segment and the Life segment, despite increases in the Business
Platform segment and Industry and Mobility segment. Operating
profit ratio decreased by 1.4 points year-on-year to 3.7% due
mainly to deteriorated cost ratio.
The cost ratio deteriorated by 2.0 points year-on-year despite
the improvement owing to the weaker yen, as there was the impact of
the rise in some material prices, the profitability of the
Infrastructure segment deteriorated, and the Life segment also
deteriorated due to the rise in logistics costs. Selling, general
and administrative expenses increased by 40.4 billion yen
year-on-year, but the selling, general and administrative expenses
to revenue ratio improved by 0.5 points year-on-year. Other profit
(loss) increased by 0.4 billion yen and other profit (loss) to
revenue ratio improved by 0.1 points year-on-year.
Profit before income taxes
Profit before income taxes decreased by 2.6 billion yen
year-on-year to 56.2 billion yen due primarily to a decrease in
operating profit. The profit before income taxes to revenue ratio
was 4.4%.
Net profit attributable to Mitsubishi Electric Corporation
stockholders
Net profit attributable to Mitsubishi Electric Corporation
stockholders decreased by 1.6 billion yen year-on-year to 41.3
billion yen due mainly to a decrease in profit before income taxes.
The net profit attributable to Mitsubishi Electric Corporation
stockholders to revenue ratio was 3.2%.
Consolidated Financial Results by Business Segment (Second
Quarter, Fiscal 2023)
Infrastructure
Revenue: 227.7 billion (2% increase year-on-year; recorded
yen 223.1 billion yen)
Operating profit (12.1 billion (15.1 billion yen decline year-on-year;
(loss): yen) recorded 3.0 billion yen)
The market for the public utility systems business saw robust
investment in the public utility area outside Japan, while there
was a continuing trend of railway companies in Japan revising their
capital expenditure due to the impact of COVID-19. In this
environment, orders won by the business increased year-on-year due
primarily to an increase in the public utility area outside Japan,
while revenue remained substantially unchanged year-on-year.
The market for the energy systems business continued to see
capital expenditures of power companies in Japan and robust demand
for power supply stabilization in the expansion of renewable
energy. In this environment, orders won by the business increased
year-on-year due primarily to increases in the power distribution
and the power generation businesses in Japan, while revenue
decreased year-on-year due mainly to a decrease in the power
generation business in Japan.
The defense & space systems business saw a decrease in
orders year-on-year due primarily to a decrease in large-scale
projects for the space systems business, while revenue increased
year-on-year due mainly to an increase in large-scale projects for
the defense systems business.
As a result, revenue for this segment increased by 2%
year-on-year to 227.7 billion yen.
Operating profit declined by 15.1 billion yen year-on-year to a
loss of 12.1 billion yen due primarily to a shift in project
portfolios and lower profitability in the defense & space
systems business.
Industry and Mobility
Revenue: 430.4 billion (26% increase year-on-year; recorded
yen 340.8 billion yen)
Operating profit: 21.2 billion (0.7 billion yen increase year-on-year;
yen recorded 20.5 billion yen)
The market for the factory automation systems business continued
to see robust demand worldwide primarily for capital expenditures
related to digital equipment such as semiconductors and electronic
components, as well as products in the decarbonization area such as
lithium-ion batteries. In this environment, orders won by the
business decreased year-on-year due primarily to a decrease in
demand related to smartphones in China, while revenue increased
year-on-year.
The market for the automotive equipment business saw an increase
in sales of new cars globally year-on-year, particularly in China
and India, despite the semiconductor shortage. There was also
robust demand for electric vehicle-related equipment in line with
the expansion of the electric vehicle market. In this environment,
the business saw increases in both orders and revenue year-on-year
due primarily to the weaker yen and increases in electric-vehicle
related equipment such as motors and inverters as well as
electrical components.
As a result, revenue for this segment increased by 26%
year-on-year to 430.4 billion yen.
Operating profit increased by 0.7 billion yen year-on-year to
21.2 billion yen due mainly to an increase in revenue, despite the
rise in material prices and logistics costs.
Life
Revenue: 501.7 billion (22% increase year-on-year; recorded
yen 411.7 billion yen)
Operating profit: 20.3 billion (4.6 billion yen decrease year-on-year;
yen recorded 24.9 billion yen)
The market for the building systems business continued to see
recovery from the sluggish market stemming from COVID-19. In this
environment, the business saw increases in both orders and revenue
year-on-year due primarily to the weaker yen and an increase in
Asia and Japan.
The market for the air conditioning systems & home products
business saw recovery from the impact of Shanghai's lockdown and an
improvement of the situation with regard to the electronic
components shortage. In this environment, the revenue for the
business increased year-on-year due mainly to the weaker yen and
increase in air conditioners in Japan, North America and Asia.
As a result, revenue for this segment increased by 22%
year-on-year to 501.7 billion yen.
Operating profit decreased by 4.6 billion yen year-on-year to
20.3 billion yen due primarily to the rise in material prices and
logistics costs, despite the weaker yen.
Business Platform
Revenue: 113.6 billion (15% increase year-on-year; recorded
yen 99.1 billion yen)
Operating profit: 12.0 billion (6.3 billion yen increase year-on-year;
yen recorded 5.7 billion yen)
The market for the information systems & network service
business saw the impact of the semiconductor shortage, while there
was robust demand due mainly to the restarts of projects delayed in
the COVID-19 pandemic. In this environment, orders won by the
business decreased year-on-year due mainly to a decrease in the
system integrations businesses, while revenue remained
substantially unchanged year-on-year.
The market for the semiconductor & device business saw
robust demand in power modules used in consumer and industrial
applications as well as optical communication devices. In this
environment, orders won by the business decreased year-on-year due
primarily to a decrease in power modules , while revenue increased
year-on-year due primarily to the weaker yen and increases in power
modules used in consumer and industrial applications as well as
high frequency and optical devices, particularly in optical
communication devices.
As a result, revenue for this segment increased by 15%
year-on-year to 113.6 billion yen.
Operating profit increased by 6.3 billion yen year-on-year to
12.0 billion yen due mainly to the weaker yen and an increase in
revenue.
Others
Revenue: 213.1 billion (15% increase year-on-year; recorded
yen 185.4 billion yen)
Operating 10.3 billion (4.7 billion yen increase year-on-year;
profit: yen recorded 5.5 billion yen)
Revenue increased by 15% year-on-year to 213.1 billion yen due
primarily to increases in materials procurement and logistics.
Operating profit increased by 4.7 billion yen year-on-year to
10.3 billion yen due mainly to an increase in revenue.
Financial Standing
An analysis on the status of assets, liabilities and equity on a
consolidated basis
Total assets as of the end of this fiscal quarter increased by
96.6 billion yen compared to the end of the previous fiscal year to
5,204.6 billion yen. The change in balance of total assets was
mainly attributable to increases in inventories by 178.3 billion
yen and contract assets by 35.3 billion yen, despite a decrease in
trade receivables by 104.0 billion yen.
Inventories increased due primarily to the weaker yen, recovery
in demand for the Industry and Mobility segment and the Life
segment, as well as the semiconductor and other electronic
components shortage. Trade receivables decreased due mainly to
credit collection for projects from the previous fiscal year.
Total liabilities decreased by 17.0 billion yen compared to the
end of the previous fiscal year to 1,993.5 billion yen due
primarily to a decrease in other current liabilities of 30.6
billion yen, despite an increase in trade payables of 9.8 billion
yen. Bonds and borrowings increased by 0.9 billion yen compared to
the end of the previous fiscal year to 218.0 billion yen, with the
ratio of bonds and borrowings to total assets recording 4.2%,
representing a 0.1 point decrease compared to the end of the
previous fiscal year.
Mitsubishi Electric Corporation stockholders' equity increased
by 109.3 billion yen compared to the end of the previous fiscal
year to 3,085.2 billion yen due mainly to net profit attributable
to Mitsubishi Electric Corporation stockholders of 74.8 billion yen
and an increase in accumulated other comprehensive income of 89.7
billion yen, mainly reflecting the weaker yen, despite a decrease
due primarily to a dividend payment of 54.9 billion yen. The
stockholders' equity ratio was 59.3%, representing a 1.0 point
increase compared to the end of the previous fiscal year.
An analysis on the status of cash flow on a consolidated
basis
Cash flows from operating activities for the first half of
fiscal 2023 were 50.7 billion yen (cash in), while cash flows from
investing activities were 89.8 billion yen (cash out). As a result,
free cash flow was 39.0 billion yen (cash out). Cash flows from
financing activities were 91.0 billion yen (cash out), and cash and
cash equivalents at the end of the period decreased by 95.5 billion
yen compared to the end of the previous fiscal year to 631.5
billion yen.
Net cash provided by operating activities decreased by 114.1
billion yen year-on-year due primarily to a decrease in profit, the
impact of credit collection and an increase in inventories.
Net cash used in investing activities increased by 10.4 billion
yen year-on-year due mainly to an increase in purchase of
investment securities primarily for the acquisition of
subsidiaries, as well as the purchase of property, plant and
equipment.
Net cash used in financing activities decreased by 41.4 billion
yen year-on-year due primarily to an increase in raising short-term
borrowings and a decrease in purchase of treasury stock.
Forecast for Fiscal 2023
The consolidated earnings forecast for fiscal 2023, ending March
31, 2023, has been revised from the announcement on July 28, 2022,
as stated below. Revenue is expected to exceed the previous
announcement due to foreign exchange rates reconsidered in line
with the weaker yen and passing rising components procurement costs
onto prices. Forecasts for profits remain unchanged from the
previous announcement due primarily to the rise in material prices
and logistics costs, semiconductor and electronic components
shortages and lower profitability in the Infrastructure
segment.
Consolidated Previous Current forecast Change from
forecast previous forecast
(announced
on July 28)
Revenue: 4,770.0 billion 4,970.0 billion (11% increase Up 200.0 billion
yen yen from fiscal 2022) yen, or 4%
---------------- ---------------- ------------------- -------------------
Operating profit: 270.0 billion 270.0 billion (7% increase from Unchanged, or
yen yen fiscal 2022) 0%
---------------- ---------------- ------------------- -------------------
Profit before 295.0 billion 295.0 billion (5% increase from Unchanged, or
income taxes: yen yen fiscal 2022) 0%
---------------- ---------------- ------------------- -------------------
Net profit
attributable
to Mitsubishi
Electric Corp. 215.0 billion 215.0 billion (6% increase from Unchanged, or
stockholders: yen yen fiscal 2022) 0%
---------------- ---------------- ------------------- -------------------
Exchange rates in and after the third quarter of fiscal 2023 are
135 yen to the U.S. dollar, which is 15 yen weaker than the
previous announcement; 135 yen to the euro, which is 5 yen weaker
than the previous announcement; and 19.0 yen to the Chinese yuan,
which is 1 yen weaker than the previous announcement.
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.
Consolidated Financial Results Summary
1. Consolidated Half-year Results
(In billions of yen except where noted)
FY '22 1(st) FY '23 1(st) B - A B/A
half (A) half (B) (%)
(Apr. 1, 2021 (Apr. 1, 2022
- Sept. 30, 2021) - Sept. 30, 2022)
------------------- ------------------- --------- -----
Revenue 2,138.3 2,339.5 201.1 109
------------------- ------------------- --------- -----
Operating profit 137.8 80.5 (57.3) 58
------------------- ------------------- --------- -----
Profit before income
taxes 148.3 103.1 (45.2) 69
------------------- ------------------- --------- -----
Net profit attributable
to Mitsubishi Electric
Corp. stockholders 104.8 74.8 (30.0) 71
------------------- -------------------
Basic earnings per
share attributable
to Mitsubishi Electric (13.(51)
Corp. stockholders 48.(94) yen 35.(43) yen yen) 72
------------------- -------------------
2. Consolidated Second-quarter Results
(In billions of yen except where noted)
FY '22 Q2 (A) FY '23 Q2 (B) B - A B/A
(Jul. 1, 2021 (Jul. 1, 2022 (%)
- - Sept. 30, 2022)
Sept. 30, 2021)
-------------------- -------- -----
Revenue 1,071.9 1,271.8 199.9 119
------------------ -------------------- -------- -----
Operating profit 55.0 46.5 (8.5) 85
------------------ -------------------- -------- -----
Profit before income
taxes 58.8 56.2 (2.6) 95
------------------ -------------------- -------- -----
Net profit attributable
to Mitsubishi Electric
Corp. stockholders 43.0 41.3 (1.6) 96
------------------ --------------------
Basic earnings per
share attributable
to Mitsubishi Electric (0.(52)
Corp. stockholders 20.(09) yen 19.(57) yen yen) 97
------------------ --------------------
Notes :
1) Consolidated financial statements are prepared in accordance
with International Financial Reporting Standards (IFRS).
2) The company has 210 consolidated subsidiaries.
Condensed Quarterly Consolidated Financial Statements
Condensed Quarterly Consolidated Statement of Profit or Loss and
Condensed Quarterly Consolidated Statement of Comprehensive Income
(First Half, Fiscal 2023)
(Condensed Quarterly Consolidated Statement of Profit or
Loss)
(In millions of yen)
FY '22 1(st) FY '23 1(st)
half half
(Apr. 1, 2021 (Apr. 1, 2022
- -
Sept. 30, 2021) Sept. 30, 2022)
(A) % of (B) % of B - A B/A
total total (%)
---------- ------- ---------- ------- ---------
Revenue 2,138,377 100.0 2,339,567 100.0 201,190 109
Cost of sales 1,514,319 70.8 1,710,855 73.1 196,536 113
Selling, general and
administrative expenses 488,887 22.9 550,908 23.6 62,021 113
Other profit (loss) 2,659 0.1 2,699 0.1 40 102
---------- ------- ---------- ------- --------- -----
Operating profit 137,830 6.4 80,503 3.4 (57,327) 58
Financial income 4,635 0.2 12,529 0.6 7,894 270
Financial expenses 2,672 0.1 1,627 0.1 (1,045) 61
Share of profit of
investments accounted
for using the equity
method 8,602 0.4 11,706 0.5 3,104 136
---------- ------- ---------- ------- --------- -----
Profit before income
taxes 148,395 6.9 103,111 4.4 (45,284) 69
Income taxes 34,470 1.6 22,609 1.0 (11,861) 66
---------- ------- ---------- ------- --------- -----
Net profit 113,925 5.3 80,502 3.4 (33,423) 71
---------- ------- ---------- ------- --------- -----
Net profit attributable
to:
Mitsubishi Electric
Corp.
stockholders 104,836 4.9 74,825 3.2 (30,011) 71
Non-controlling interests 9,089 0.4 5,677 0.2 (3,412) 62
---------- ------- ---------- ------- --------- -----
(Condensed Quarterly Consolidated Statement of Comprehensive
Income)
(In millions of yen)
FY '22 FY '23 B - A
1(st) half 1(st) half
(A) (B)
(Apr. 1, 2021 (Apr. 1, 2022
- - Sept. 30,
Sept. 30, 2022)
2021)
--------------- ---------------
Net profit 113,925 80,502 (33,423)
--------------- --------------- ---------
(Other comprehensive income
(loss),
net of tax)
Items that will not be reclassified
to
net profit
Changes in fair value of financial
assets measured at fair value
through other comprehensive
income 11,650 (2,186) (13,836)
------------------------------------------ --------------- --------------- ---------
Share of other comprehensive
income of investments accounted
for using the equity method 577 20 (557)
--------------- --------------- ---------
Subtotal 12,227 (2,166) (14,393)
--------------- --------------- ---------
Items that may be reclassified
to net profit
Exchange differences on translating
foreign operations (9,244) 89,343 98,587
------------------------------------------ --------------- --------------- ---------
Net changes in the fair value
of cash flow hedges (57) (155) (98)
------------------------------------------ --------------- --------------- ---------
Share of other comprehensive
income of investments accounted
for using the equity method 4,098 10,981 6,883
--------------- --------------- ---------
Subtotal (5,203) 100,169 105,372
--------------- --------------- ---------
Total other comprehensive
income (loss) 7,024 98,003 90,979
--------------- --------------- ---------
Comprehensive income 120,949 178,505 57,556
--------------- --------------- ---------
Comprehensive income attributable
to:
Mitsubishi Electric Corp.
stockholders 112,559 165,304 52,745
Non-controlling interests 8,390 13,201 4,811
--------------- --------------- ---------
Condensed Quarterly Consolidated Statement of Profit or Loss and
Condensed Quarterly Consolidated Statement of Comprehensive Income
(Second Quarter, Fiscal 2023)
(Condensed Quarterly Consolidated Statement of Profit or
Loss)
(In millions of yen)
FY '22 Q2 FY '23 Q2
(Jul. 1, 2021 (Jul. 1, 2022
- -
Sept. 30, 2021) Sept. 30, 2022)
(A) % of (B) % of B - A B/A
total total (%)
---------- ------- ----------- ------- --------
Revenue 1,071,935 100.0 1,271,844 100.0 199,909 119
Cost of sales 766,010 71.5 934,382 73.5 168,372 122
Selling, general and
administrative expenses 251,051 23.4 291,550 22.9 40,499 116
Other profit (loss) 188 0.0 626 0.1 438 333
---------- ------- ----------- ------- -------- -----
Operating profit 55,062 5.1 46,538 3.7 (8,524) 85
Financial income 846 0.1 4,032 0.3 3,186 477
Financial expenses 1,534 0.1 900 0.1 (634) 59
Share of profit of investments
accounted for using
the
equity method 4,508 0.4 6,545 0.5 2,037 145
---------- ------- ----------- ------- -------- -----
Profit before income
taxes 58,882 5.5 56,215 4.4 (2,667) 95
Income taxes 12,061 1.1 11,376 0.9 (685) 94
---------- ------- ----------- ------- -------- -----
Net profit 46,821 4.4 44,839 3.5 (1,982) 96
---------- ------- ----------- ------- -------- -----
Net profit attributable
to:
Mitsubishi Electric
Corp.
stockholders 43,001 4.0 41,333 3.2 (1,668) 96
Non-controlling interests 3,820 0.4 3,506 0.3 (314) 92
---------- ------- ----------- ------- -------- -----
(Condensed Quarterly Consolidated Statement of Comprehensive
Income)
(In millions of yen)
FY '22 Q2 (A) FY '23 Q2 B - A
(B)
(Jul. 1, 2021 (Jul. 1, 2022
- -
Sept. 30, 2021) Sept. 30,
2022)
----------------- ----------------
Net profit 46,821 44,839 (1,982)
----------------- ---------------- ---------
(Other comprehensive income
(loss),
net of tax)
Items that will not be reclassified
to
net profit
Changes in fair value of financial
assets measured at fair value
through other comprehensive
income 13,522 (339) (13,861)
------------------------------------------ ----------------- ---------------- ---------
Share of other comprehensive
income of investments accounted
for using the equity method 639 (42) (681)
----------------- ---------------- ---------
Subtotal 14,161 (381) (14,542)
----------------- ---------------- ---------
Items that may be reclassified
to net profit
Exchange differences on translating
foreign operations (8,300) 11,114 19,414
------------------------------------------ ----------------- ---------------- ---------
Net changes in the fair value
of cash flow hedges (53) (94) (41)
------------------------------------------ ----------------- ---------------- ---------
Share of other comprehensive
income of investments accounted
for using the equity method 1,620 7,613 5,993
----------------- ---------------- ---------
Subtotal (6,733) 18,633 25,366
----------------- ---------------- ---------
Total other comprehensive
income (loss) 7,428 18,252 10,824
----------------- ---------------- ---------
Comprehensive income 54,249 63,091 8,842
----------------- ---------------- ---------
Comprehensive income attributable
to:
Mitsubishi Electric Corp.
stockholders 51,103 58,668 7,565
Non-controlling interests 3,146 4,423 1,277
----------------- ---------------- ---------
Condensed Quarterly Consolidated Statement of Financial
Position
(In millions of yen)
FY '22 (A) FY '23 B - A
(ended Mar. 1(st) half
31, 2022) (B)
(ended Sept.
30, 2022)
--------------------- ---------------------
(Assets)
Current assets 3,090,296 3,123,287 32,991
Cash and cash equivalents 727,179 631,587 (95,592)
Trade receivables 944,405 840,397 (104,008)
Contract assets 287,697 323,022 35,325
Inventories 959,660 1,138,040 178,380
Other current assets 171,355 190,241 18,886
Non-current assets 2,017,677 2,081,335 63,658
Investments accounted for using
the equity method 221,467 234,745 13,278
Other financial assets 321,056 315,504 (5,552)
Property, plant and equipment 855,746 881,090 25,344
Other non-current assets 619,408 649,996 30,588
--------------------- --------------------- ----------
Total assets 5,107,973 5,204,622 96,649
============================================ ===================== ===================== ==========
(Liabilities)
Current liabilities 1,646,722 1,619,807 (26,915)
Bonds, borrowings and lease liabilities 173,213 167,130 (6,083)
Trade payables 601,606 611,434 9,828
Other current liabilities 871,903 841,243 (30,660)
Non-current liabilities 363,854 373,709 9,855
Bonds, borrowings and lease liabilities 156,248 162,095 5,847
Net defined benefit liabilities 162,353 165,986 3,633
Other non-current liabilities 45,253 45,628 375
--------------------- --------------------- ----------
Total liabilities 2,010,576 1,993,516 (17,060)
--------------------- --------------------- ----------
(Equity)
Mitsubishi Electric Corp. stockholders'
equity 2,975,941 3,085,257 109,316
Common stock 175,820 175,820
Capital surplus 202,695 202,438 (257)
Retained earnings 2,464,966 2,485,597 20,631
Accumulated other comprehensive
income (loss) 184,528 274,261 89,733
Treasury stock, at cost (52,068) (52,859) (791)
Non-controlling interests 121,456 125,849 4,393
--------------------- --------------------- ----------
Total equity 3,097,397 3,211,106 113,709
--------------------- --------------------- ----------
Total liabilities and equity 5,107,973 5,204,622 96,649
============================================ ===================== ===================== ==========
Bonds, borrowings and lease liabilities 329,461 329,225 (236)
Excluding lease liabilities 217,171 218,087 916
Accumulated other comprehensive
income (loss):
Exchange differences on translating
foreign operations 99,293 192,107 92,814
Financial assets measured at fair
value through other comprehensive
income 85,204 82,314 (2,890)
Net changes in the fair value of
cash flow hedges 31 (160) (191)
Condensed Quarterly Consolidated Statement of Changes in
Equity
FY '22 1st Half (Apr. 1, 2021 - Sept. 30, 2021)
(In millions of yen)
Mitsubishi Electric Corp. stockholders' Non-controlling Total
equity interests equity
Common Capital Retained Accumulated Treasury Total
stock surplus earnings other stock,
comprehensive at cost
income
(loss)
----------
Balance at
beginning
of period 175,820 202,777 2,266,490 111,801 (2,595) 2,754,293 116,318 2,870,611
================== ======== ======== ========== ============== ========= ========== ================ ==========
Comprehensive
income
Net profit 104,836 104,836 9,089 113,925
Other
comprehensive
income (loss),
net of tax 7,723 7,723 (699) 7,024
-------- -------- ---------- -------------- --------- ---------- ---------------- ----------
Comprehensive
income 104,836 7,723 112,559 8,390 120,949
-------- -------- ---------- -------------- --------- ---------- ---------------- ----------
Reclassification
to retained
earnings 215 (215)
Dividends (55,816) (55,816) (9,111) (64,927)
Purchase of
treasury
stock (16,490) (16,490) (16,490)
Disposal of
treasury
stock (1,053) 1,053 0 0
Transactions with
non-controlling
interests and
others 235 235 (640) (405)
-------- -------- ---------- -------------- --------- ---------- ---------------- ----------
Balance at end
of period 175,820 201,959 2,315,725 119,309 (18,032) 2,794,781 114,957 2,909,738
================== ======== ======== ========== ============== ========= ========== ================ ==========
FY '23 1st Half (Apr. 1, 2022 - Sept. 30, 2022)
(In millions of yen)
Mitsubishi Electric Corp. stockholders' Non-controlling Total
equity interests equity
Common Capital Retained Accumulated Treasury Total
stock surplus earnings other stock,
comprehensive at cost
income
(loss)
----------
Balance at
beginning
of period 175,820 202,695 2,464,966 184,528 (52,068) 2,975,941 121,456 3,097,397
================== ======== ======== ========== ============== ========= ========== ================ ==========
Comprehensive
income
Net profit 74,825 74,825 5,677 80,502
Other
comprehensive
income (loss),
net of tax 90,479 90,479 7,524 98,003
-------- -------- ---------- -------------- --------- ---------- ---------------- ----------
Comprehensive
income 74,825 90,479 165,304 13,201 178,505
-------- -------- ---------- -------------- --------- ---------- ---------------- ----------
Reclassification
to retained
earnings 746 (746)
Dividends (54,940) (54,940) (6,853) (61,793)
Purchase of
treasury
stock (1,575) (1,575) (1,575)
Disposal of
treasury
stock (784) 784 0 0
Transactions with
non-controlling
interests and
others 527 527 (1,955) (1,428)
-------- -------- ---------- -------------- --------- ---------- ---------------- ----------
Balance at end
of period 175,820 202,438 2,485,597 274,261 (52,859) 3,085,257 125,849 3,211,106
================== ======== ======== ========== ============== ========= ========== ================ ==========
Condensed Quarterly Consolidated Statement of Cash Flows
(In millions of yen)
FY '22 1(st) FY '23 1(st) B - A
half half
(Apr. 1, (Apr. 1,
2021 - Sept. 2022 - Sept.
30, 2021) 30, 2022)
(A) (B)
-------------- --------------
I Cash flows from operating activities
1 Net profit 113,925 80,502 (33,423)
2 Adjustments to cash flows from
operating activities
(1) Depreciation, amortization
and other 96,331 100,550 4,219
(2) Decrease in trade receivables 188,462 141,318 (47,144)
(3) Decrease (increase) in contract
assets (32,207) (33,052) (845)
(4) Decrease (increase) in inventories (99,262) (135,628) (36,366)
(5) Increase (decrease) in trade
payables (26,960) (656) 26,304
(6) Others, net (75,370) (102,264) (26,894)
------ --------------------------------------- -------------- -------------- ----------
Cash flows from operating activities 164,919 50,770 (114,149)
II Cash flows from investing activities
Purchase of property, plant and
1 equipment (65,419) (71,469) (6,050)
Proceeds from sale of property,
2 plant and equipment 1,126 3,284 2,158
Purchase of investment securities
3 and others (net of cash acquired) (9,210) (19,826) (10,616)
Proceeds from sale of investment
securities and others (net of
4 cash disposed) 3,953 6,747 2,794
5 Others, net (9,842) (8,586) 1,256
------ --------------------------------------- -------------- -------------- ----------
Cash flows from investing activities (79,392) (89,850) (10,458)
I
+ II Free cash flow 85,527 (39,080) (124,607)
III Cash flows from financing activities
Proceeds and repayments of bonds
1 and long-term borrowings (20,359) (15,412) 4,947
Increase (decrease) in short-term
2 borrowings, net (3,322) 18,097 21,419
3 Repayments of lease liabilities (27,643) (28,439) (796)
4 Dividends paid (55,816) (54,940) 876
5 Purchase of treasury stock (16,490) (1,575) 14,915
6 Disposal of treasury stock 0 0 (0)
7 Others, net (8,885) (8,777) 108
------ --------------------------------------- -------------- -------------- ----------
Cash flows from financing activities (132,515) (91,046) 41,469
Effect of exchange rate changes
IV on cash and cash equivalents 1,521 34,534 33,013
------ --------------------------------------- -------------- -------------- ----------
Net increase (decrease) in cash
V and cash equivalents (45,467) (95,592) (50,125)
------ --------------------------------------- -------------- -------------- ----------
Cash and cash equivalents at
VI beginning of period 767,406 727,179 (40,227)
------ --------------------------------------- -------------- -------------- ----------
Cash and cash equivalents at
VII end of period 721,939 631,587 (90,352)
------ --------------------------------------- -------------- -------------- ----------
Consolidated Segment Information (First Half, Fiscal 2023)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment FY'22 1(st) FY'23 1(st) C - A D - B C/A
half half (%)
(Apr. 1, 2021 (Apr. 1, 2022
- -
Sept. 30, 2021) Sept. 30, 2022)
----------------------
Revenue Operating Revenue Operating
(A) profit (C) profit
(B) (loss)
(D)
---------- ---------- ----------
Infrastructure 409,549 8,727 402,004 (15,382) (7,545) (24,109) 98
---------- ---------- ---------- ---------- --------- --------- -----
Industry and Mobility 701,899 55,203 794,961 43,954 93,062 (11,249) 113
---------- ---------- ---------- ---------- --------- --------- -----
Life 846,872 69,777 940,184 34,050 93,312 (35,727) 111
---------- ---------- ---------- ---------- --------- --------- -----
Business Platform 187,316 9,566 206,860 19,447 19,544 9,881 110
---------- ---------- ---------- ---------- --------- --------- -----
Others 345,908 9,445 393,034 14,317 47,126 4,872 114
---------- ---------- ---------- ---------- --------- --------- -----
Subtotal 2,491,544 152,718 2,737,043 96,386 245,499 (56,332) 110
---------- ---------- ---------- ---------- --------- --------- -----
Eliminations and
corporate (353,167) (14,888) (397,476) (15,883) (44,309) (995)
---------- ---------- ---------- ---------- --------- --------- -----
Consolidated total 2,138,377 137,830 2,339,567 80,503 201,190 (57,327) 109
---------- ---------- ---------- ---------- --------- --------- -----
Notes :
1) Business segments have been changed due to the adoption of
the new management structure on April 1, 2022.
Results for FY '22 1(st) half were restated in line with the new
segmentation.
2) Inter-segment revenues are included in the above chart.
2. Revenue by Location of Customers
(In millions of yen)
Location of Customers FY '22 1(st) half FY '23 1(st) B - A B/A (%)
(Apr. 1, 2021 half
- (Apr. 1, 2022
Sept. 30, 2021) -
Sept. 30, 2022)
----------------------- ---------------------
Revenue % of total Revenue % of
(A) revenue (B) total
revenue
---------- ----------- ---------- ---------
Japan 1,083,544 50.7 1,116,691 47.7 33,147 103
------------------------- ---------- ----------- ---------- --------- -------- --------
North America 227,473 10.7 292,761 12.5 65,288 129
---------- ----------- ---------- --------- -------- --------
China 293,882 13.7 293,810 12.6 (72) 100
---------- ----------- ---------- --------- -------- --------
Other than
China 245,763 11.5 309,286 13.2 63,523 126
----------------------- ---------- ----------- ---------- --------- -------- --------
Asia (excluding
Japan) 539,645 25.2 603,096 25.8 63,451 112
------------------------ ---------- ----------- ---------- --------- -------- --------
Europe 255,107 11.9 287,134 12.3 32,027 113
------------------------ ---------- ----------- ---------- --------- -------- --------
Others 32,608 1.5 39,885 1.7 7,277 122
------------------------ ---------- ----------- ---------- --------- -------- --------
Total overseas
revenue 1,054,833 49.3 1,222,876 52.3 168,043 116
------------------------- ---------- ----------- ---------- --------- -------- --------
Consolidated total 2,138,377 100.0 2,339,567 100.0 201,190 109
---------- ----------- ---------- --------- -------- --------
Consolidated Segment Information (Second Quarter, Fiscal
2023)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment FY '22 Q2 FY '23 Q2 C - A D - B C/A
(Jul. 1, 2021 (Jul. 1, 2022 (%)
- -
Sept. 30, 2021) Sept. 30, 2022)
----------------------
Revenue Operating Revenue Operating
(A) profit (C) profit
(B) (loss)
(D)
---------- ---------- ----------
Infrastructure 223,166 3,045 227,799 (12,100) 4,633 (15,145) 102
---------- ---------- ---------- ---------- --------- --------- -----
Industry and Mobility 340,814 20,518 430,494 21,229 89,680 711 126
---------- ---------- ---------- ---------- --------- --------- -----
Life 411,716 24,949 501,791 20,318 90,075 (4,631) 122
---------- ---------- ---------- ---------- --------- --------- -----
Business Platform 99,139 5,715 113,601 12,019 14,462 6,304 115
---------- ---------- ---------- ---------- --------- --------- -----
Others 185,431 5,586 213,164 10,319 27,733 4,733 115
---------- ---------- ---------- ---------- --------- --------- -----
Subtotal 1,260,266 59,813 1,486,849 51,785 226,583 (8,028) 118
---------- ---------- ---------- ---------- --------- --------- -----
Eliminations and
corporate (188,331) (4,751) (215,005) (5,247) (26,674) (496)
---------- ---------- ---------- ---------- --------- --------- -----
Consolidated total 1,071,935 55,062 1,271,844 46,538 199,909 (8,524) 119
---------- ---------- ---------- ---------- --------- --------- -----
Notes :
1) Business segments have been changed due to the adoption of
the new management structure on April 1, 2022.
Results for FY '22 Q2 were restated in line with the new
segmentation.
2) Inter-segment revenues are included in the above chart.
2. Revenue by Location of Customers
(In millions of yen)
Location of Customers FY '22 Q2 FY '23 Q2 B - A B/A (%)
(Jul. 1, 2021 (Jul. 1, 2022
- -
Sept. 30, 2021) Sept. 30, 2022)
----------------------- ---------------------
Revenue % of total Revenue % of
(A) revenue (B) total
revenue
---------- ----------- ---------- ---------
Japan 565,345 52.7 616,150 48.4 50,805 109
-------------------------- ---------- ----------- ---------- --------- -------- --------
North America 110,018 10.3 161,232 12.7 51,214 147
---------- ----------- ---------- --------- -------- --------
China 138,547 12.9 168,070 13.2 29,523 121
---------- ----------- ---------- --------- -------- --------
Other than
China 124,088 11.6 162,051 12.8 37,963 131
------------------------ ---------- ----------- ---------- --------- -------- --------
Asia (excluding
Japan) 262,635 24.5 330,121 26.0 67,486 126
------------------------- ---------- ----------- ---------- --------- -------- --------
Europe 117,502 11.0 143,414 11.3 25,912 122
------------------------- ---------- ----------- ---------- --------- -------- --------
Others 16,435 1.5 20,927 1.6 4,492 127
------------------------- ---------- ----------- ---------- --------- -------- --------
Total overseas
revenue 506,590 47.3 655,694 51.6 149,104 129
-------------------------- ---------- ----------- ---------- --------- -------- --------
Consolidated total 1,071,935 100.0 1,271,844 100.0 199,909 119
---------- ----------- ---------- --------- -------- --------
Notes to the Condensed Consolidated Financial Statements
(Notes regarding the going concern assumption)
Not applicable
Cautionary Statement
While the statements herein, including the forecasts regarding
the Mitsubishi Electric Group, are based on assumptions considered
to be reasonable under the circumstances on the date of
announcement, actual results may differ significantly from
forecasts.
The main factors materially affecting the expectations expressed
herein include but are not limited to the following:
(1) Changes in worldwide economic and social conditions, as well
as regulations, taxation and other legislation
(2) Changes in foreign currency exchange rates
(3) Changes in stock markets
(4) Changes in the fund-raising environment
(5) Changes in the supply and demand of products, as well as the
material procurement environment
(6) Establishment of important patents, status of significant
licenses and disputes related to key patents
(7) Litigation and other legal proceedings
(8) Issues related to quality and defects in products or
services
(9) Laws, regulations and issues related to the global
environment, especially responses to climate change
(10) Laws, regulations and issues related to human rights
(11) Radical technological innovation, as well as the
development, manufacturing and time-to-market of products using new
technology
(12) Business restructuring
(13) Information security incidents
(14) Large-scale disasters, including earthquakes, tsunamis,
typhoons, volcanic eruptions and fires
(15) Social, economic and political upheaval due to heightened
geopolitical risks, war, conflict, terrorism or other factors
(16) Social, economic and political upheaval due to pandemics or other factors
(17) Important matters related to Mitsubishi Electric
Corporation's directors and executive officers, major shareholders,
affiliated companies and other stakeholders
###
About Mitsubishi Electric Corporation
With more than 100 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.
Mitsubishi Electric enriches society with technology in the spirit
of its "Changes for the Better." The company recorded a revenue of
4,476.7 billion yen (U.S.$ 36.7 billion*) in the fiscal year ended
March 31, 2022. For more information, please visit
www.MitsubishiElectric.com
*U.S. dollar amounts are translated from yen at the rate of
122=U.S.$1, the approximate rate on the Tokyo Foreign Exchange
Market on March 31, 2022
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END
IR FEMSLAEESEES
(END) Dow Jones Newswires
October 28, 2022 02:00 ET (06:00 GMT)
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