Total assets amounted to ¥4,264.5 billion as of March 31, 2018, an increase of ¥92.2 billion compared to the end of the previous fiscal year. Despite a decrease of ¥63.2 billion in cash and cash equivalents, primary factors contributing to the increase in total assets included an increase of ¥98.7 billion in work-in-process and other inventories recorded in step with progress in construction, as well as an increase in the sum of trade receivables and long-term trade receivables totaling ¥49.5 billion.

Under liabilities, the outstanding balance of debt and corporate bonds fell by ¥40.6 billion compared to the end of the previous fiscal year to ¥311.4 billion, and the ratio of interest-bearing debt to total assets was 7.3%, a decrease of 1.1 percentage points year on year. While trade payables decreased by ¥60.7 billion, retirement and severance benefits declined by ¥23.9 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 ¥131.1 billion to ¥1,900.4 billion.

Mitsubishi Electric Corp. shareholders’ equity grew by ¥219.7 billion compared to the end of the previous fiscal year to ¥2,259.3 billion and the ratio of Mitsubishi Electric Corp. shareholders’ equity to total assets was 53.0%, up 4.1 of a percentage point year on year.

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.

In the year ended March 31, 2018, net cash provided by operating activities amounted to ¥240.4 billion, while net cash used in investing activities was ¥178.2 billion. As a result, free cash flow was an inflow of ¥62.2 billion, down ¥155.0 billion compared to the previous fiscal year. Taking this into account along with other factors, including net cash used in financing activities of ¥128.2 billion, fiscal year-end cash and cash equivalents amounted to ¥599.1 billion, a decrease of ¥63.2 billion year on year.