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Investor Relations – Financial Highlights

Five-Year Summary

Mitsubishi Electric Corporation and Subsidiaries

Yen (millions) U.S. dollars
(thousands)
Years ended March 31 2013 2014 2015 2016 2017 2017
Summary of Operations
Net sales
¥3,567,184 ¥4,054,359 ¥4,323,041 ¥4,394,353 ¥4,238,666 $37,845,232
Cost of sales
2,604,360 2,914,589 3,032,161 3,071,435 2,950,729 26,345,795
Selling, general, administrative and R&D expenses
806,412 900,807 970,191 1,013,264 1,014,389 9,057,044
Loss on impairment of long-lived assets
4,317 3,791 3,085 8,482 3,444 30,750
Operating costs
3,415,089 3,819,187 4,005,437 4,093,181 3,968,562 35,433,589
Operating income
152,095 235,172 317,604 301,172 270,104 2,411,643
Income before income taxes
65,141 248,990 322,968 318,476 296,249 2,645,080
Net income attributable to Mitsubishi Electric Corp.
¥69,517 ¥153,473 ¥234,694 ¥228,494 ¥210,493 $1,879,402
Financial Ratios
Return on sales (%)
1.95 3.79 5.43 5.20 4.97 -
Return on equity (%)
5.72 10.87 13.94 12.41 10.85 -
Return on assets (%)
2.04 4.37 6.12 5.63 5.11 -
Equity ratio (%)
38.12 42.19 45.38 45.29 48.79 -
Per-Share Amounts
Net income attributable to Mitsubishi Electric Corp.
(yen/U.S. dollars)
Basic
¥32.38 ¥71.49 ¥109.32 ¥106.43 ¥98.07 $0.876
Diluted
- - - - - -
Cash dividends declared
(yen/U.S. dollars)
¥11 ¥17 ¥27 ¥27 ¥27 $0.241

NOTES:

1.
The Company prepares consolidated financial statements with procedures, accounting terms, forms, and preparation that are in conformity with accounting principles generally accepted in the United States of America based on the rules and regulations applicable in Japan.
2.
Operating income is presented as net sales less cost of sales, selling, general, administrative and R&D expenses, and loss on impairment of long-lived assets. Total operating income for each segment conforms to above mentioned operating income. Business restructuring expenses are shown as non-operating expenses.
3.
U.S. dollar amounts are translated from yen at the rate of ¥112=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2017.
4.
Diluted net income per share attributable to Mitsubishi Electric Corp. is not included in the above table as no dilutive securities existed.
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Overview

(Year ended March 31, 2017)

The business environment in the fiscal year ended March 31, 2017 (hereinafter, fiscal 2017) 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, the Mitsubishi Electric Group has been working even harder than before to promote growth strategies rooted in its advantages, while continuously implementing initiatives to strengthen its competitiveness and business structure.

As a result, in fiscal 2017, the Mitsubishi Electric Group recorded net sales of ¥4,238.6 billion and operating income of ¥270.1 billion. Income before income taxes came to ¥296.2 billion. Net income attributable to Mitsubishi Electric Corporation was ¥210.4 billion for the fiscal year.

Net sales
Operating income
Net income attributable to Mitsubishi Electric Corp.
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Financial Position

(Year ended March 31, 2017)
Debt ratio
Mitsubishi Electric Corp. Shareholders' equity ratio

Total assets amounted to ¥4,180.0 billion as of March 31, 2017, an increase of ¥120.0 billion compared to the end of the previous fiscal year. Positive factors contributing to this result included increases of ¥88.2 billion in cash and cash equivalents and ¥85.1 billion in investments in securities and other due to higher share prices.

Under liabilities, the outstanding balance of debt and corporate bonds fell by ¥51.9 billion compared to the end of the previous fiscal year to ¥352.1 billion. As a result, the ratio of interest-bearing debt to total assets was 8.4%, a decrease of 1.6 percentage points year on year. While trade payables grew by ¥6.4 billion, retirement and severance benefits declined by ¥34.7 billion largely because of an increase in pension plan assets caused by higher share prices. As a result of these and other factors, total liabilities decreased by ¥83.1 billion to ¥2,039.3 billion.

Mitsubishi Electric Corp. shareholders’ equity grew by ¥200.8 billion compared to the end of the previous fiscal year to ¥2,039.6 billion and the ratio of Mitsubishi Electric Corp. shareholders’ equity to total assets was 48.8%, up 3.5 of a percentage point year on year.

Capital Expenditures

(Year ended March 31, 2017)
Capital expenditures

In line with its policy of improving performance by implementing the Balanced Corporate Management Policy and pursuing sustainable growth, the Mitsubishi Electric Group aims to realize its growth strategies as it increases profitability. To that end, the Group directed its capital investment mainly toward the areas of energy and electric systems, factory automation equipment, automotive equipment, power devices, and air conditioning equipment. At the same time the Group continued to reinforce its solid business platform through the careful selection and concentration of investments.

On an individual business segment basis, investments were made in Energy and Electric Systems (including power systems, electric equipment for rolling stock, and elevators/escalators) aimed at increasing production capacity, streamlining operations, and enhancing quality. In Industrial Automation, capital expenditures were used primarily for boosting production capacity for factory automation systems and automotive equipment operations. In Information and Communication Systems, funds were appropriated for bolstering research and development capabilities, while in Electronic Devices, Mitsubishi Electric directed investment mainly toward augmenting production in the power device business. In Home Appliances, expenditures focused largely on increasing the air conditioners production capacity, streamlining operations, and enhancing quality. In Common and Others, investments mainly went toward boosting research and development capabilities.

Cash Flows

(Year ended March 31, 2017)
Free cash flows

In the year ended March 31, 2017, net cash provided by operating activities amounted to ¥365.9 billion, while net cash used in investing activities was ¥148.6 billion. As a result, free cash flow was an inflow of ¥217.3 billion, up ¥106.0 billion compared to the previous fiscal year. Taking this into account along with other factors, including net cash used in financing activities of ¥123.4 billion, fiscal year-end cash and cash equivalents amounted to ¥662.4 billion, an increase of ¥88.2 billion year on year.

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