29th Oct 2015 14:07
FOR IMMEDIATE RELEASE | No. 2972 |
Investor Relations Inquiries | Media Inquiries |
Investor Relations Group, Corporate Finance Division | Public Relations Division |
Mitsubishi Electric Corporation | Mitsubishi Electric Corporation |
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Mitsubishi Electric Announces Consolidated Financial Results for the First Half and Second Quarter of Fiscal 2016
http://www.rns-pdf.londonstockexchange.com/rns/8910D_-2015-10-29.pdf
TOKYO, October 29, 2015 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its financial results for the first half and second quarter, ended September 30, 2015, of the current fiscal year ending March 31, 2016 (fiscal 2016).
1. Consolidated Half-year Results (April 1, 2015 - September 30, 2015)
Net sales: | 2,063.2 | billion yen | (5% increase from the same period last year) |
Operating income: | 127.0 | billion yen | (5% increase from the same period last year) |
Income before income taxes: | 133.0 | billion yen | (9% decrease from the same period last year) |
Net income attributable to Mitsubishi Electric Corp.: | 92.9 | billion yen | (5% decrease from the same period last year) |
The business environment in the first half of fiscal year 2016, from April through September 2015, experienced a stronger trend of economic slowdown in China and other East Asian markets, weakness in consumption in Japan and stronger stagnation in certain emerging markets. Meanwhile, the U.S. economy saw continued buoyancy and the European market showed gradual recovery. In the foreign currency exchange market, the yen was weaker against the U.S. dollar compared to the previous year.
Under these circumstances, consolidated net sales in the first half of fiscal 2016 increased by 5% compared to the same period of the previous fiscal year to 2,063.2 billion yen, due to increased sales in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments. Consolidated operating income also increased by 5% compared to the same period of the previous fiscal year to 127.0 billion yen, due to increased profits in the Industrial Automation Systems and Electronic Devices segments.
Consolidated Financial Results by Business Segment (First Half, Fiscal 2016)
Energy and Electric Systems
Total sales: | 523.7 | billion yen | (4% increase from the same period last year) |
Operating income: | 3.7 | billion yen | (8.7 billion yen decrease from the same period last year) |
The social infrastructure systems business saw increases both in orders and sales compared to the same period of the previous fiscal year due to increases in the power systems business and the rolling-stock equipment business in Japan, and also due to the weaker yen.
The building systems business experienced increases both in orders and sales compared to the same period of the previous fiscal year, owing to growth in the new installation of elevators and escalators outside Japan and the renewal business in Japan, as well as the weaker yen.
As a result, total sales for this segment increased by 4% from the same period of the previous fiscal year. Operating income decreased by 8.7 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios and lower profit in the power systems business.
Industrial Automation Systems
Total sales: | 661.5 | billion yen | (9% increase from the same period last year) |
Operating income: | 83.9 | billion yen | (17.6 billion yen increase from the same period last year) |
The factory automation systems business saw a decrease in orders from the same period of the previous fiscal year mainly due to lower demand outside Japan, while sales experienced an increase from the same period of the previous fiscal year due to growth in capital expenditures relating to the automotive industry and facility replacements by manufacturers in Japan, and due additionally to the weaker yen.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in the car sales market in North America and Europe, as well as the positive influence of the weaker yen.
As a result, total sales for this segment increased by 9% from the same period of the previous fiscal year. Operating income increased by 17.6 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales: | 224.0 | billion yen | (10% decrease from the same period last year) |
Operating income (loss): | (3.8 | billion yen) | (9.1 billion yen decline from the same period last year) |
The telecommunications equipment business remained substantially unchanged in both orders and sales compared to the same period of the previous fiscal year.
The information systems and service business saw an increase in sales compared to the same period of the previous fiscal year, mainly owing to growth in the system integrations business.
The electronic systems business saw an increase in orders compared to the same period of the previous fiscal year, while sales experienced a decrease compared to the same period of the previous fiscal year due to a shift in the portfolio of large-scale projects in the defense systems business.
As a result, total sales for this segment decreased by 10% compared to the same period of the previous fiscal year. Operating income declined by 9.1 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Electronic Devices
Total sales: | 123.2 | billion yen | (16% increase from the same period last year) |
Operating income: | 16.3 | billion yen | (8.5 billion yen increase from the same period last year) |
The electronic devices business saw a decrease in orders from the same period of the previous fiscal year due to a decrease in demand mainly for power modules used in railcar, industrial and consumer applications and for industrial-use LCD modules. Sales experienced an increase from the same period of the previous fiscal year due to an increase primarily in automotive-use power modules and optical communication devices, and additionally due to the weaker yen.
As a result, total sales for the segment increased by 16% compared to the same period of the previous fiscal year. Operating income increased by 8.5 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Home Appliances
Total sales: | 511.1 | billion yen | (7% increase from the same period last year) |
Operating income: | 33.1 | billion yen | (2.0 billion yen decrease from the same period last year) |
The home appliances business saw an increase in sales of 7% compared to the same period of the previous fiscal year due to an increase in sales of air conditioners for homes in Japan and air conditioners for European and Asian markets, as well as the positive influence of the weaker yen.
Operating income decreased by 2.0 billion yen compared to the same period of the previous fiscal year largely due to a decline in prices.
Others
Total sales: | 338.4 | billion yen | (4% decrease from the same period last year) |
Operating income: | 7.3 | billion yen | (0.9 billion yen decrease from the same period last year) |
Sales decreased by 4% compared to the same period of the previous fiscal year due to decreases mainly at affiliated companies involved in materials procurement.
Operating income decreased by 0.9 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
2. Consolidated Second-quarter Results (July 1, 2015 - September 30, 2015)
Net sales: | 1,074.8 | billion yen | (1% increase from the same period last year) |
Operating income: | 72.3 | billion yen | (17% increase from the same period last year) |
Income before income taxes: | 65.8 | billion yen | (16% decrease from the same period last year) |
Net income attributable to Mitsubishi Electric Corp.: | 46.6 | billion yen | (15% decrease from the same period last year) |
Consolidated net sales for this quarter, from July through September 2015, was 1,074.8 billion yen, a 1% increase from the same period of the previous fiscal year, due primarily to increased sales in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments. Consolidated operating income was 72.3 billion yen, an increase of 17% from the same period of the previous fiscal year, with increased profits in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments.
Consolidated Financial Results by Business Segment (Second Quarter, Fiscal 2016)
Energy and Electric Systems
Total sales: | 287.0 | billion yen | (3% increase from the same period last year) |
Operating income: | 10.4 | billion yen | (5.7 billion yen increase from the same period last year) |
The social infrastructure systems business saw increases both in orders and sales compared to the same period of the previous fiscal year due to an increase in the power systems business worldwide, and also due to the weaker yen, despite a decrease in sales of the public utility systems in Japan.
The building systems business experienced increases both in orders and sales compared to the same period of the previous fiscal year, owing to growth in the new installation of elevators and escalators outside Japan and the renewal business in Japan, as well as the weaker yen.
As a result, total sales for this segment increased by 3% from the same period of the previous fiscal year. Operating income increased by 5.7 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Industrial Automation Systems
Total sales: | 333.1 | billion yen | (6% increase from the same period last year) |
Operating income: | 41.0 | billion yen | (9.9 billion yen increase from the same period last year) |
The factory automation systems business saw a decrease in orders from the same period of the previous fiscal year mainly due to lower demand outside Japan, while sales experienced an increase from the same period of the previous fiscal year due to growth in capital expenditures relating to the automotive industry and facility replacements by manufacturers in Japan, and due additionally to the weaker yen.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in the car sales market in North America and Europe, as well as the positive influence of the weaker yen.
As a result, total sales for this segment increased by 6% from the same period of the previous fiscal year. Operating income increased by 9.9 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales: | 128.6 | billion yen | (18% decrease from the same period last year) |
Operating income (loss): | (2.0 | billion yen) | (9.1 billion yen decline from the same period last year) |
The telecommunications equipment business saw an increase in orders compared to the same period of the previous fiscal year owing primarily to an increase in communications infrastructure products, while sales remained substantially unchanged from the same period of the previous fiscal year.
The information systems and service business saw little change in sales compared to the same period of the previous fiscal year.
The electronic systems business saw an increase in orders compared to the same period of the previous fiscal year, while sales experienced a decrease compared to the same period of the previous fiscal year due to a shift in the portfolio of large-scale projects in the defense systems business.
As a result, total sales for this segment decreased by 18% compared to the same period of the previous fiscal year. Operating income declined by 9.1 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Electronic Devices
Total sales: | 57.0 | billion yen | (3% increase from the same period last year) |
Operating income: | 4.0 | billion yen | (0.1 billion yen increase from the same period last year) |
The electronic devices business saw a decrease in orders from the same period of the previous fiscal year due to a decrease in demand mainly for power modules used in railcar, industrial and consumer applications and for industrial-use LCD modules. Sales experienced an increase from the same period of the previous fiscal year due to an increase primarily in automotive-use power modules and optical communication devices, and additionally due to the weaker yen.
As a result, total sales for this segment increased by 3% compared to the same period of the previous fiscal year. Operating income increased by 0.1 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Home Appliances
Total sales: | 257.0 | billion yen | (6% increase from the same period last year) |
Operating income: | 16.9 | billion yen | (2.9 billion yen increase from the same period last year) |
The home appliances business saw an increase in sales of 6% compared to the same period of the previous fiscal year due to an increase in sales of air conditioners for homes in Japan and air conditioners for European markets, as well as the positive influence of the weaker yen.
Operating income increased by 2.9 billion yen compared to the same period of the previous fiscal year due to an increase in sales and other factors.
Others
Total sales: | 175.2 | billion yen | (4% decrease from the same period last year) |
Operating income: | 6.4 | billion yen | (unchanged from the same period last year) |
Sales decreased by 4% compared to the same period of the previous fiscal year due to decreases mainly at affiliated companies involved in materials procurement.
Operating income remained substantially unchanged from the same period of the previous fiscal year.
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 195.5 billion yen to 3,863.8 billion yen. The change in the balance of total assets mainly resulted from increases in the balances of cash and cash equivalents of 4.9 billion yen, and inventories of 11.8 billion yen as a result of work-in-process recorded in commensurate with progress in job orders under pertinent contracts, while trade receivables showed a decrease of 178.8 billion yen resulting from various factors including credit collection.
Total liabilities decreased from the end of the previous fiscal year by 163.4 billion yen to 1,965.8 billion yen. The outstanding balances of debts and corporate bonds decreased by 24.5 billion yen from the end of the previous fiscal year to 357.4 billion yen. The ratio of interest bearing debt to total assets declined to 9.3%, which was a 0.1 point decrease compared to the end of the previous fiscal year. Retirement and severance benefits increased by 16.8 billion yen, mainly owing to a decrease in pension assets resulting from a decline in stock prices, while trade payables decreased by 117.1 billion yen and other current liabilities decreased by 42.6 billion yen.
Mitsubishi Electric Corporation shareholders' equity decreased by 30.3 billion yen compared to the end of the previous fiscal year to 1,811.8 billion yen. Shareholders' equity ratio, representing a 1.5 point increase compared to the end of the previous fiscal year, was recorded at 46.9%. The changes referred to above primarily resulted from a dividend payment of 38.6 billion yen, together with a decrease in accumulated other comprehensive income by 84.6 billion yen due to such factors as the decline in stock prices, despite a recorded net income attributable to Mitsubishi Electric Corporation of 92.9 billion yen.
Cash flows from operating activities decreased by 45.4 billion yen compared to the same period of the previous fiscal year to 179.8 billion yen (cash in) resulting primarily from a decrease in advance payments. Cash flows from investing activities increased by 6.8 billion yen compared to the same period of the previous fiscal year to 95.0 billion yen (cash out). Consequently, free cash flow totaled 84.8 billion yen (cash in). Cash flows from financing activities were 69.4 billion yen (cash out) mainly due to dividend payments.
Forecast for Fiscal 2016 (year ending March 31, 2016)
The consolidated earnings forecast for fiscal 2016, ending March 31, 2016, has been revised from the previous forecast announced on July 30, 2015. Net sales is expected to exceed the previous forecast owing mainly to increases in the Energy and Electric Systems and the Home Appliances segments largely resulting from the positive influence of the weaker yen. Operating income is, however, expected to fall below the previous forecast due primarily to lower profit in the Energy and Electric Systems segment and decreasing revenues in the Information and Communication Systems and Electronic Devices segments. Net income attributable to Mitsubishi Electric Corp. is expected to remain unchanged from the previous forecast due mainly to decreases in non-operating expense and tax expense.
Consolidated earnings forecast for fiscal 2016
Previous forecast (announced July 30) | Current forecast | ||
Net sales: | 4,370.0 billion yen | 4,380.0 billion yen | (1% increase from fiscal 2015) |
Operating income: | 320.0 billion yen | 300.0 billion yen | (6% decrease from fiscal 2015) |
Income before income taxes: | 320.0 billion yen | 315.0 billion yen | (2% decrease from fiscal 2015) |
Net income attributable to Mitsubishi Electric Corp.: | 220.0 billion yen | 220.0 billion yen | (6% decrease from fiscal 2015) |
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 '15 1st half (A)(Apr. 1, 2014 - Sept. 30, 2014) | FY '16 1st half (B)(Apr. 1, 2015 - Sept. 30, 2015) | |||
B - A | B/A (%) | |||
Net sales | 1,972.8 | 2,063.2 | 90.4 | 105 |
Operating income | 121.3 | 127.0 | 5.6 | 105 |
Income before income taxes | 145.9 | 133.0 | (12.8) | 91 |
Net income attributable to Mitsubishi Electric Corp. | 97.8 | 92.9 | (4.9) | 95 |
Basic net income per share attributable to Mitsubishi Electric Corp. | 45.58 yen | 43.29 yen | (2.29 yen) | 95 |
2. Consolidated Second-quarter Results
(In billions of yen except where noted)
FY '15 Q2 (A)(Jul. 1, 2014 -Sept. 30, 2014) | FY '16 Q2 (B)(Jul. 1, 2015 - Sept. 30, 2015) | |||
B - A | B/A (%) | |||
Net sales | 1,062.1 | 1,074.8 | 12.6 | 101 |
Operating income | 62.0 | 72.3 | 10.3 | 117 |
Income before income taxes | 78.0 | 65.8 | (12.1) | 84 |
Net income attributable to Mitsubishi Electric Corp. | 54.8 | 46.6 | (8.2) | 85 |
Basic net income per share attributable to Mitsubishi Electric Corp. | 25.54 yen | 21.71 yen | (3.83 yen) | 85 |
Notes:
1) Consolidated financial charts made in accordance with U.S. GAAP.
2) The Company has 176 consolidated subsidiaries.
Consolidated Profit and Loss Statement (First Half, Fiscal 2016)
(In millions of yen)
FY '15 1st half (Apr. 1, 2014 - Sept. 30, 2014) | FY '16 1st half (Apr. 1, 2015 - Sept. 30, 2015) | ||||||
B - A | B/A (%) | ||||||
(A) | % of total | (B) | % of total | ||||
Net sales | 1,972,838 | 100.0 | 2,063,285 | 100.0 | 90,447 | 105 | |
Cost of sales | 1,382,107 | 70.1 | 1,432,770 | 69.4 | 50,663 | 104 | |
Selling, general and administrative expenses | 468,641 | 23.7 | 499,497 | 24.2 | 30,856 | 107 |
|
Loss on impairment of long-lived assets | 699 | 0.0 | 4,004 | 0.2 | 3,305 | 573 | |
Operating income | 121,391 | 6.2 | 127,014 | 6.2 | 5,623 | 105 | |
Other income | 40,256 | 2.0 | 26,573 | 1.2 | (13,683) | 66 | |
Interest and dividends | 4,270 | 0.2 | 4,279 | 0.2 | 9 | 100 | |
Equity in earnings of affiliated companies | 12,154 | 0.6 | 13,261 | 0.6 | 1,107 | 109 | |
Other | 23,832 | 1.2 | 9,033 | 0.4 | (14,799) | 38 | |
Other expenses | 15,721 | 0.8 | 20,529 | 1.0 | 4,808 | 131 | |
Interest | 1,963 | 0.1 | 1,830 | 0.1 | (133) | 93 | |
Other | 13,758 | 0.7 | 18,699 | 0.9 | 4,941 | 136 | |
Income before income taxes | 145,926 | 7.4 | 133,058 | 6.4 | (12,868) | 91 | |
Income taxes | 43,167 | 2.2 | 33,925 | 1.6 | (9,242) | 79 | |
Net income | 102,759 | 5.2 | 99,133 | 4.8 | (3,626) | 96 | |
Net income attributable to the noncontrolling interests | 4,905 | 0.2 | 6,208 | 0.3 | 1,303 | 127 | |
Net income attributable to Mitsubishi Electric Corp. | 97,854 | 5.0 | 92,925 | 4.5 | (4,929) | 95 | |
Consolidated Comprehensive Income Statement (First Half, Fiscal 2016)
(In millions of yen)
FY '15 1st half (A) (Apr. 1, 2014 - Sept. 30, 2014) | FY '16 1st half (B) (Apr. 1, 2015 - Sept. 30, 2015) | B - A | ||
Net income | 102,759 | 99,133 | (3,626) | |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | 19,951 | (32,458) | (52,409) | |
Pension liability adjustments | 18,174 | (25,977) | (44,151) | |
Unrealized gains (losses) on securities | 23,265 | (30,153) | (53,418) | |
Unrealized gains (losses) on derivative instruments | (12) | (17) | (5) | |
Total | 61,378 | (88,605) | (149,983) | |
Comprehensive income | 164,137 | 10,528 | (153,609) | |
Comprehensive income attributable to the noncontrolling interests | 7,348 | 2,236 | (5,112) | |
Comprehensive income attributable to Mitsubishi Electric Corp. | 156,789 | 8,292 | (148,497) | |
Consolidated Profit and Loss Statement (Second Quarter, Fiscal 2016)
(In millions of yen)
FY '15 Q2 (Jul. 1, 2014 - Sept. 30, 2014) | FY '16 Q2 (Jul. 1, 2015 - Sept. 30, 2015) | ||||||
B - A | B/A (%) | ||||||
(A) | % of total | (B) | % of total | ||||
Net sales | 1,062,190 | 100.0 | 1,074,845 | 100.0 | 12,655 | 101 | |
Cost of sales | 754,463 | 71.0 | 741,722 | 69.0 | (12,741) | 98 | |
Selling, general andadministrative expenses | 244,956 | 23.1 | 256,737 | 23.9 | 11,781 | 105 | |
Loss on impairment of long-lived assets | 699 | 0.1 | 4,004 | 0.4 | 3,305 | 573 | |
Operating income | 62,072 | 5.8 | 72,382 | 6.7 | 10,310 | 117 | |
Other income | 23,328 | 2.2 | 13,393 | 1.3 | (9,935) | 57 | |
Interest and dividends | 1,368 | 0.1 | 1,245 | 0.1 | (123) | 91 | |
Equity in earnings of affiliated companies | 8,559 | 0.8 | 8,212 | 0.8 | (347) | 96 | |
Other | 13,401 | 1.3 | 3,936 | 0.4 | (9,465) | 29 | |
Other expenses | 7,333 | 0.7 | 19,894 | 1.9 | 12,561 | 271 | |
Interest | 1,010 | 0.1 | 904 | 0.1 | (106) | 90 | |
Other | 6,323 | 0.6 | 18,990 | 1.8 | 12,667 | 300 | |
Income before income taxes | 78,067 | 7.3 | 65,881 | 6.1 | (12,186) | 84 | |
Income taxes | 20,912 | 1.9 | 16,427 | 1.5 | (4,485) | 79 | |
Net income | 57,155 | 5.4 | 49,454 | 4.6 | (7,701) | 87 | |
Net income attributable to the noncontrolling interests | 2,322 | 0.2 | 2,846 | 0.3 | 524 | 123 | |
Net income attributable to Mitsubishi Electric Corp. | 54,833 | 5.2 | 46,608 | 4.3 | (8,225) | 85 | |
Consolidated Comprehensive Income Statement (Second Quarter, Fiscal 2016)
(In millions of yen)
FY '15 Q2 (A) (Jul. 1, 2014 - Sept. 30, 2014) | FY '16 Q2 (B) (Jul. 1, 2015 - Sept. 30, 2015) | B - A | ||
Net income | 57,155 | 49,454 | (7,701) | |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | 32,087 | (37,989) | (70,076) | |
Pension liability adjustments | 16,936 | (36,849) | (53,785) | |
Unrealized gains (losses) on securities | 17,127 | (36,960) | (54,087) | |
Unrealized gains (losses) on derivative instruments | 36 | (54) | (90) | |
Total | 66,186 | (111,852) | (178,038) | |
Comprehensive income (loss) | 123,341 | (62,398) | (185,739) | |
Comprehensive income (loss) attributable to the noncontrolling interests | 5,589 | (1,668) | (7,257) | |
Comprehensive income (loss) attributable to Mitsubishi Electric Corp. | 117,752 | (60,730) | (178,482) | |
Consolidated Balance Sheet
(In millions of yen)
FY '15 (A) (ended Mar. 31, 2015) | FY ' 16 1st half (B) (ended Sept. 30, 2015) | B - A | |
(Assets) Current assets | 2,633,445 | 2,471,761 | (161,684) |
Cash and cash equivalents | 568,517 | 573,445 | 4,928 |
Trade receivables | 1,048,542 | 871,041 | (177,501) |
Inventories | 705,420 | 717,260 | 11,840 |
Prepaid expenses and other current assets | 310,966 | 310,015 | (951) |
Long-term trade receivables | 5,633 | 4,322 | (1,311) |
Investments | 595,828 | 549,676 | (46,152) |
Net property, plant and equipment | 706,475 | 703,575 | (2,900) |
Other assets | 118,070 | 134,562 | 16,492 |
Total assets | 4,059,451 | 3,863,896 | (195,555) |
(Liabilities) Current liabilities | 1,612,582 | 1,419,405 | (193,177) |
Bank loans and current portion of long-term debt | 164,402 | 131,065 | (33,337) |
Trade payables | 807,289 | 690,128 | (117,161) |
Other current liabilities | 640,891 | 598,212 | (42,679) |
Long-term debt | 217,592 | 226,429 | 8,837 |
Retirement and severance benefits | 182,282 | 199,164 | 16,882 |
Other fixed liabilities | 116,828 | 120,844 | 4,016 |
Total liabilities | 2,129,284 | 1,965,842 | (163,442) |
(Equity) Mitsubishi Electric Corp. shareholders' equity | 1,842,203 | 1,811,827 | (30,376) |
Common stock | 175,820 | 175,820 | － |
Capital surplus | 211,155 | 211,155 | － |
Retained earnings | 1,331,496 | 1,385,779 | 54,283 |
Accumulated other comprehensive income (loss) | 124,064 | 39,431 | (84,633) |
Treasury stock at cost | (332) | (358) | (26) |
Noncontrolling interests | 87,964 | 86,227 | (1,737) |
Total equity | 1,930,167 | 1,898,054 | (32,113) |
| Total liabilities and equity | 4,059,451 | 3,863,896 | (195,555) |
Balance of Debt | 381,994 | 357,494 | (24,500) |
Accumulated other comprehensive income (loss): | |||
Foreign currency translation adjustments | 102,959 | 74,575 | (28,384) |
Pension liability adjustments | (98,108) | (124,085) | (25,977) |
Unrealized gains on securities | 119,252 | 89,005 | (30,247) |
Unrealized gains (losses) on derivative instruments | (39) | (64) | (25) |
Consolidated Cash Flow Statement
(In millions of yen)
FY '15 1st half (Apr. 1, 2014 - Sept. 30, 2014) (A) | FY '16 1st half (Apr. 1, 2015 - Sept. 30, 2015) (B) | B - A | ||
I | Cash flows from operating activities | |||
1 | Net income | 102,759 | 99,133 | (3,626) |
2 | Adjustments to reconcile net income to net cash provided by operating activities | |||
(1) Depreciation of tangible fixed assets and other | 68,891 | 69,774 | 883 | |
(2) Decrease in trade receivables | 112,729 | 173,200 | 60,471 | |
(3) Decrease (increase) in inventories | (97,130) | (19,907) | 77,223 | |
(4) Increase (decrease) in trade payables | (27,453) | (98,053) | (70,600) | |
(5) Other, net | 65,496 | (44,274) | (109,770) | |
Net cash provided by operating activities | 225,292 | 179,873 | (45,419) | |
II | Cash flows from investing activities | |||
1 | Capital expenditure | (89,943) | (86,019) | 3,924 |
2 | Proceeds from sale of property, plant and equipment | 4,842 | 1,177 | (3,665) |
3 | Purchase of short-term investments and investment securities (net of cash acquired) | (1,253) | (4,139) | (2,886) |
4 | Proceeds from sale of short-term investments and investment securities | 6,326 | 2,240 | (4,086) |
5 | Other, net | (8,172) | (8,269) | (97) |
Net cash used in investing activities | (88,200) | (95,010) | (6,810) | |
I+II Free cash flow | 137,092 | 84,863 | (52,229) | |
III | Cash flows from financing activities | |||
1 | Proceeds from long-term debt | 50,243 | 30,100 | (20,143) |
2 | Repayment of long-term debt | (51,676) | (53,818) | (2,142) |
3 | Increase (decrease) in bank loans, net | 6,320 | (2,040) | (8,360) |
4 | Dividends paid | (23,615) | (38,642) | (15,027) |
5 | Purchase of treasury stock | (24) | (27) | (3) |
6 | Reissuance of treasury stock | 0 | 0 | 0 |
7 | Other, net | (2,801) | (5,018) | (2,217) |
Net cash provided by (used in) financing activities | (21,553) | (69,445) | (47,892) | |
IV | Effect of exchange rate changes on cash and cash equivalents | 8,250 | (10,490) | (18,740) |
V | Net increase in cash and cash equivalents | 123,789 | 4,928 | (118,861) |
VI | Cash and cash equivalents at beginning of period | 418,049 | 568,517 | 150,468 |
VII | Cash and cash equivalents at end of period | 541,838 | 573,445 | 31,607 |
Consolidated Segment Information (First Half, Fiscal 2016)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment | FY '15 1st half (Apr. 1, 2014 - Sept. 30, 2014) | FY '16 1st half (Apr. 1, 2015 - Sept. 30, 2015) | C - A | D - B | C/A (%) | |||
Sales (A) | Operating income (B) | Sales (C) | Operating income (loss) (D) | |||||
Energy and Electric Systems | 502,194 | 12,515 | 523,778 | 3,773 | 21,584 | (8,742) | 104 | |
Industrial Automation Systems | 609,301 | 66,263 | 661,520 | 83,919 | 52,219 | 17,656 | 109 | |
Information and Communication Systems | 248,512 | 5,340 | 224,037 | (3,815) | (24,475) | (9,155) | 90 | |
Electronic Devices | 106,525 | 7,772 | 123,208 | 16,351 | 16,683 | 8,579 | 116 | |
Home Appliances | 477,100 | 35,225 | 511,138 | 33,194 | 34,038 | (2,031) | 107 | |
Others | 351,243 | 8,273 | 338,484 | 7,367 | (12,759) | (906) | 96 | |
Subtotal | 2,294,875 | 135,388 | 2,382,165 | 140,789 | 87,290 | 5,401 | 104 | |
Eliminations and other | (322,037) | (13,997) | (318,880) | (13,775) | 3,157 | 222 | － | |
Total | 1,972,838 | 121,391 | 2,063,285 | 127,014 | 90,447 | 5,623 | 105 | |
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location | FY '15 1st half (Apr. 1, 2014 - Sept. 30, 2014) | FY '16 1st half (Apr. 1, 2015 - Sept. 30, 2015) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | ||||
Japan | 1,621,249 | 71,991 | 1,625,040 | 61,219 | 3,791 | (10,772) | 100 |
North America | 177,027 | 2,500 | 223,338 | 4,439 | 46,311 | 1,939 | 126 |
Asia (excluding Japan) | 486,962 | 40,101 | 544,863 | 48,280 | 57,901 | 8,179 | 112 |
Europe | 193,530 | 6,788 | 207,060 | 9,755 | 13,530 | 2,967 | 107 |
Others | 21,657 | 244 | 24,906 | 575 | 3,249 | 331 | 115 |
Subtotal | 2,500,425 | 121,624 | 2,625,207 | 124,268 | 124,782 | 2,644 | 105 |
Eliminations | (527,587) | (233) | (561,922) | 2,746 | (34,335) | 2,979 | － |
Total | 1,972,838 | 121,391 | 2,063,285 | 127,014 | 90,447 | 5,623 | 105 |
*Note: Inter-segment sales are included in the above chart.
3. Sales by Location of Customers
(In millions of yen)
Location of Customers | FY '15 1st half (Apr. 1, 2014 - Sept. 30, 2014) | FY '16 1st half (Apr. 1, 2015 - Sept. 30, 2015) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 1,120,549 | 56.8 | 1,105,521 | 53.6 | (15,028) | 99 | ||
North America | 182,907 | 9.3 | 222,936 | 10.8 | 40,029 | 122 | ||
Asia (excluding Japan) | 447,737 | 22.7 | 494,960 | 24.0 | 47,223 | 111 | ||
Europe | 181,731 | 9.2 | 194,096 | 9.4 | 12,365 | 107 | ||
Others | 39,914 | 2.0 | 45,772 | 2.2 | 5,858 | 115 | ||
Total overseas sales | 852,289 | 43.2 | 957,764 | 46.4 | 105,475 | 112 | ||
Consolidated total | 1,972,838 | 100.0 | 2,063,285 | 100.0 | 90,447 | 105 | ||
Consolidated Segment Information (Second Quarter, Fiscal 2016)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment | FY '15 Q2 (Jul. 1, 2014 - Sept. 30, 2014) | FY '16 Q2 (Jul. 1, 2015 - Sept. 30, 2015) | C - A | D - B | C/A (%) | |||
Sales (A) | Operating income (B) | Sales (C) | Operating income (loss) (D) | |||||
Energy and Electric Systems | 278,961 | 4,685 | 287,097 | 10,439 | 8,136 | 5,754 | 103 | |
Industrial Automation Systems | 313,974 | 31,104 | 333,170 | 41,052 | 19,196 | 9,948 | 106 | |
Information and Communication Systems | 155,972 | 7,104 | 128,628 | (2,060) | (27,344) | (9,164) | 82 | |
Electronic Devices | 55,290 | 3,913 | 57,091 | 4,019 | 1,801 | 106 | 103 | |
Home Appliances | 242,383 | 13,975 | 257,046 | 16,950 | 14,663 | 2,975 | 106 | |
Others | 183,185 | 6,554 | 175,294 | 6,464 | (7,891) | (90) | 96 | |
Subtotal | 1,229,765 | 67,335 | 1,238,326 | 76,864 | 8,561 | 9,529 | 101 | |
Eliminations and other | (167,575) | (5,263) | (163,481) | (4,482) | 4,094 | 781 | － | |
Total | 1,062,190 | 62,072 | 1,074,845 | 72,382 | 12,655 | 10,310 | 101 | |
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location | FY '15 Q2 (Jul. 1, 2014 - Sept. 30, 2014) | FY '16 Q2 (Jul. 1, 2015 - Sept. 30, 2015) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | ||||
Japan | 889,001 | 32,848 | 866,669 | 34,404 | (22,332) | 1,556 | 97 |
North America | 86,177 | 248 | 111,183 | 3,363 | 25,006 | 3,115 | 129 |
Asia (excluding Japan) | 242,536 | 17,677 | 255,312 | 19,262 | 12,776 | 1,585 | 105 |
Europe | 94,211 | 3,206 | 102,762 | 5,553 | 8,551 | 2,347 | 109 |
Others | 11,763 | 6 | 12,630 | 368 | 867 | 362 | 107 |
Subtotal | 1,323,688 | 53,985 | 1,348,556 | 62,950 | 24,868 | 8,965 | 102 |
Eliminations | (261,498) | 8,087 | (273,711) | 9,432 | (12,213) | 1,345 | － |
Total | 1,062,190 | 62,072 | 1,074,845 | 72,382 | 12,655 | 10,310 | 101 |
*Note: Inter-segment sales are included in the above chart
3. Sales by Location of Customers
(In millions of yen)
Location of Customers | FY '15 Q2 (Jul. 1, 2014 - Sept. 30, 2014) | FY '16 Q2 (Jul. 1, 2015 - Sept. 30, 2015) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 636,420 | 59.9 | 606,016 | 56.4 | (30,404) | 95 | ||
North America | 91,843 | 8.6 | 110,120 | 10.2 | 18,277 | 120 | ||
Asia (excluding Japan) | 224,916 | 21.2 | 238,356 | 22.2 | 13,440 | 106 | ||
Europe | 87,945 | 8.3 | 96,228 | 9.0 | 8,283 | 109 | ||
Others | 21,066 | 2.0 | 24,125 | 2.2 | 3,059 | 115 | ||
Total overseas sales | 425,770 | 40.1 | 468,829 | 43.6 | 43,059 | 110 | ||
Consolidated total | 1,062,190 | 100.0 | 1,074,845 | 100.0 | 12,655 | 101 | ||
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 our 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.
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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 4,323.0 billion yen (US$ 36.0 billion*) in the fiscal year ended March 31, 2015. For more information visit:
http://www.MitsubishiElectric.com
*At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2015
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