Highlights
Financial Highlights
Five-Year Summary
Mitsubishi Electric Corporation and Subsidiaries
| Yen (millions) | U.S. dollars (thousands) |
||||||
| U.S. GAAP | IFRS | IFRS | |||||
| Years ended March 31 | 2015 | 2016 | 2017 | 2018 | 2018 | 2019 | 2019 |
|---|---|---|---|---|---|---|---|
| Revenue | ¥4,323,041 | ¥4,394,353 | ¥4,238,666 | ¥4,431,198 | ¥4,444,424 | ¥4,519,921 | $40,720,009 |
| Operating profit | 317,604 | 301,172 | 270,104 | 318,637 | 327,444 | 290,477 | 2,616,910 |
| Profit before income taxes | 322,968 | 318,476 | 296,249 | 364,578 | 353,206 | 315,958 | 2,846,468 |
| Net profit attributable to Mitsubishi Electric Corp. stockholders |
234,694 | 228,494 | 210,493 | 271,880 | 255,755 | 226,648 | 2,041,874 |
| Cash flows from operating activities | 378,313 | 366,677 | 365,950 | 240,450 | 265,768 | 239,817 | 2,160,514 |
| Cash flows from investing activities | (198,163) | (255,443) | (148,632) | (178,219) | (182,015) | (210,668) | (1,897,910) |
| Free cash flows | 180,150 | 111,234 | 217,318 | 62,231 | 83,753 | 29,149 | 262,604 |
| Cash flows from financing activities | (49,623) | (82,144) | (123,495) | (128,291) | (149,813) | (112,067) | (1,009,613) |
| Per Share Amounts: Earnings per share attributable to Mitsubishi Electric Corp. stockholders (Yen/U.S. dollars) |
|||||||
| Basic | ¥109.32 | ¥106.43 | ¥98.07 | ¥126.70 | ¥119.19 | ¥105.65 | $0.952 |
| Diluted | - | - | - | - | 119.19 | 105.65 | 0.952 |
| Cash dividends declared (Yen/U.S. dollars) |
27 | 27 | 27 | 40 | 40 | 40 | 0.360 |
| Mitsubishi Electric Corp. stockholders' equity (Yen/U.S. dollars) |
¥858.11 | ¥856.52 | ¥950.37 | ¥1,052.96 | ¥1,069.19 | ¥1,118.83 | $10.080 |
| Financial Ratios | |||||||
| Operating profit ratio (%) | 7.3 | 6.9 | 6.4 | 7.2 | 7.4 | 6.4 | - |
| Return on revenue (%) | 5.4 | 5.2 | 5.0 | 6.1 | 5.8 | 5.0 | - |
| Return on equity (ROE) (%) | 13.9 | 12.4 | 10.9 | 12.6 | 11.7 | 9.7 | - |
| Return on assets (ROA) (%) | 6.1 | 5.6 | 5.1 | 6.4 | 6.0 | 5.2 | - |
| Mitsubishi Electric Corp. stockholders' equity ratio (%) |
45.4 | 45.3 | 48.9 | 53.0 | 53.3 | 55.1 | - |
| Bonds and borrowings to total assets (%) | 9.4 | 10.0 | 8.4 | 7.3 | 7.2 | 6.9 | - |
NOTES:
- The consolidated financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRS) from the year ended March 31, 2019 and also for the fiscal year ended March 31, 2018 as comparative information.
- Diluted earnings per share attributable to Mitsubishi Electric Corp. stockholders is equal to Basic earnings per share attributable to Mitsubishi Electric Corp. stockholders under IFRS, as no dilutive securities existed.
- U.S. dollar amounts are translated from yen at the rate of ¥111= U.S.$1, the approximate rate on the Tokyo Foreign Exchage Market on March 31, 2019.
Overview
(Year ended March 31, 2019)
During the fiscal year ended March 31, 2019, the economy saw a buoyant expansion in the U.S. and a slight slowdown in the Chinese economy, while there were gradual trends of recovery in Japan and Europe despite a recent slowdown in some indicators such as export and production. In addition, the yen, compared to the previous fiscal year, was substantially unchanged against the U.S. dollar, and remained strong against the euro in and after August.
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, the Mitsubishi Electric Group has recorded revenue of ¥4,519.9 billion and consolidated operating profit of ¥290.4 billion for fiscal 2019. In addition profit before income taxes was ¥315.9 billion and net profit attributable to Mitsubishi Electric Corp. stockholders was ¥226.6 billion.
Financial Position
(Year ended March 31, 2019)
Total assets as of the end of this fiscal year increased from the end of the previous fiscal year by 50.6 billion yen to 4,356.2 billion yen. The change in the balance of total assets was mainly due to increases in the balance of inventories by 82.8 billion yen, in contract assets by 26.7 billion yen, and in trade receivables by 15.5 billion yen, while cash and cash equivalents decreased by 84.9 billion yen.
Total liabilities decreased from the end of the previous fiscal year by 63.3 billion yen to 1,845.0 billion yen. The outstanding balances of bonds and borrowings decreased by 13.5 billion yen from the end of the previous fiscal year to 298.4 billion yen, resulting in a decline in the ratio of bonds and borrowings to total assets to 6.9%, representing a 0.3 point decrease compared to the end of the previous fiscal year. Meanwhile, trade payables decreased by 19.9 billion yen, and contract liabilities decreased by 15.0 billion yen.
Mitsubishi Electric Corporation stockholders’ equity increased by 105.7 billion yen compared to the end of the previous fiscal year to 2,399.9 billion yen. The stockholders’ equity ratio was recorded at 55.1%, representing a 1.8 point increase compared to the end of the previous fiscal year. The changes referred to above primarily resulted from an increase from recording a net profit attributable to Mitsubishi Electric Corporation stockholders of 226.6 billion yen, despite a decrease due to dividend payment of 85.8 billion yen and a decrease in other comprehensive income of 45.6 billion yen reflecting a fall in stock prices and the stronger yen.
Capital Expenditures
(Year ended March 31, 2019)
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 streamlining operations, and enhancing quality. In Industrial Automation Systems, 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,and streamlining operations, 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, 2019)
In the fiscal year ended March 31, 2019, cash flows from operating activities was ¥239.8 billion, while cash flows from investing activities was ¥210.6 billion. As a result, free cash flow was an inflow of ¥29.1 billion, down ¥54.6 billion compared to the previous fiscal year. Taking this into account along with other factors, including cash flows from financing activities of ¥112.0 billion, fiscal year-end cash and cash equivalents amounted to ¥514.2 billion, a decrease of ¥84.9 billion year on year.