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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 2012 2013 2014 2015 2016 2016
Summary of Operations
Net sales
¥3,639,468 ¥3,567,184 ¥4,054,359 ¥4,323,041 ¥4,394,353 $38,888,080
Cost of sales
2,628,964 2,604,360 2,914,589 3,032,161 3,071,435 27,180,842
Selling, general, administrative and R&D expenses
781,278 806,412 900,807 970,191 1,013,264 8,966,938
Loss on impairment of long-lived assets
3,782 4,317 3,791 3,085 8,482 75,062
Operating costs
3,414,024 3,415,089 3,819,187 4,005,437 4,093,181 36,222,841
Operating income
225,444 152,095 235,172 317,604 301,172 2,665,239
Income before income taxes
224,080 65,141 248,990 322,968 318,476 2,818,372
Net income attributable to Mitsubishi Electric Corp.
¥112,063 ¥69,517 ¥153,473 ¥234,694 ¥228,494 $2,022,071
Financial Ratios
Return on sales (%)
3.08 1.95 3.79 5.43 5.20 -
Return on equity (%)
10.27 5.72 10.87 13.94 12.41 -
Return on assets (%)
3.33 2.04 4.37 6.12 5.63 -
Equity ratio (%)
33.39 38.12 42.19 45.38 45.29 -
Per-Share Amounts
Net income attributable to Mitsubishi Electric Corp.
(yen/U.S. dollars)
Basic
¥52.20 ¥32.38 ¥71.49 ¥109.32 ¥106.43 $0.942
Diluted
- - - - - -
Cash dividends declared
(yen/U.S. dollars)
¥12 ¥11 ¥17 ¥27 ¥27 $0.239

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 ¥113=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2016.
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, 2016)

The business environment in the fiscal year ended March 31, 2016 (hereinafter, fiscal 2016) experienced buoyancy in the U.S. economy, which showed expansion, and a gradual trend of economic recovery continuing in Europe, despite a gradual slowdown continuing in China and other east Asian markets, weakness in personal consumption in Japan and stagnation in certain emerging markets. In addition, the yen weakened against the U.S. dollar compared to the previous year, while becoming stronger in the fourth quarter.

Under these circumstances, the Mitsubishi Electric Group has been working even harder than before to promote growth strategies rooted in its advantages, while continuously implementing initiatives to strengthen its competitiveness and business structure.

As a result, in fiscal 2016, the Mitsubishi Electric Group recorded net sales of 4,394.3 billion yen and operating income of 301.1 billion yen. Income before income taxes came to 318.4 billion yen. Net income attributable to Mitsubishi Electric Corporation was 228.4 billion yen 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, 2016)
Debt ratio
Mitsubishi Electric Corp. Shareholders' equity ratio

Total assets amounted to ¥4,059.9 billion as of March 31, 2016, an increase of ¥0.4 billion compared with the end of the previous fiscal year. Negative factors contributing to this result included decreases of ¥65.0 billion in investments in securities and other due to lower share prices and ¥61.2 billion in inventories while positive factors included an increase of ¥135.0 billion in other assets due to the acquisition of MELCO Hydronics & IT Cooling S.p.A.

The outstanding balance of debt and corporate bonds grew by ¥22.0 billion compared with the end of the previous fiscal year to ¥404.0 billion. As a result, the ratio of interest-bearing debt to total assets was 10.0%, an increase of 0.6 of a percentage point year on year. While retirement and severance benefits rose by ¥47.4 billion largely because of a decrease in pension plan assets caused by lower share prices, trade payables, other non-current liabilities and other current liabilities decreased by ¥33.5 billion, ¥19.5 billion, and ¥17.5 billion, respectively. As a result of these and other factors, total liabilities decreased by ¥6.8 billion to ¥2,122.4 billion.

Mitsubishi Electric Corp. shareholders’ equity fell by ¥3.4 billion compared with the end of the previous fiscal year to ¥1,838.7 billion and the ratio of Mitsubishi Electric Corp. shareholders’ equity to total assets was 45.3%, down 0.1 of a percentage point year on year.

Capital Expenditures

(Year ended March 31, 2016)
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, 2016)
Free cash flows

In the year ended March 31, 2016, net cash provided by operating activities amounted to ¥366.6 billion, while net cash used in investing activities was ¥255.4 billion. As a result, free cash flow was an inflow of ¥111.2 billion, down ¥68.9 billion compared with the previous fiscal year. Taking this into account along with other factors, including net cash used in financing activities of ¥82.1 billion, the end of fiscal year cash and cash equivalents amounted to ¥574.1 billion, an increase of ¥5.6 billion year on year.

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