|Years ended March 31||2016||2017||2018||2018||2019||2020|
|Profit before income taxes||318,476||296,249||364,578||353,206||315,958||281,986|
|Net profit attributable to Mitsubishi
Electric Corp. stockholders
|Cash and cash equivalents||574,170||662,469||599,199||599,199||514,224||537,559|
|Bonds and borrowings||404,039||352,124||311,485||311,950||298,438||267,008|
|Mitsubishi Electric Corp. stockholders' equity||1,838,773||2,039,627||2,259,355||2,294,174||2,399,946||2,429,743|
|Cash flows from operating activities||366,677||365,950||240,450||265,768||239,817||395,834|
|Cash flows from investing activities||(255,443)||(148,632)||(178,219)||(182,015)||(210,668)||(203,997)|
|Free cash flows||111,234||217,318||62,231||83,753||29,149||191,837|
|Cash flows from financing activities||(82,144)||(123,495)||(128,291)||(149,813)||(112,067)||(156,454)|
|Per Share Amounts:
Earnings per share attributable to Mitsubishi Electric Corp. stockholders (Yen)
|Cash dividends declared (Yen)||27||27||40||40||40||40|
|Mitsubishi Electric Corp. stockholders' equity (Yen)||¥856.52||¥950.37||¥1,052.96||¥1,069.19||¥1,118.83||¥1,132.69|
|Operating profit ratio (%)||6.9||6.4||7.2||7.4||6.4||5.8|
|Return on revenue (%)||5.2||5.0||6.1||5.8||5.0||5.0|
|Return on equity (ROE) (%)||12.4||10.9||12.6||11.7||9.7||9.2|
|Return on assets (ROA) (%)||5.6||5.1||6.4||6.0||5.2||5.1|
|Mitsubishi Electric Corp. stockholders'
equity ratio (%)
|Bonds and borrowings to total assets (%)||10.0||8.4||7.3||7.2||6.9||6.1|
(Year ended March 31, 2020)
The economy in the fiscal year ended March 31, 2020 generally saw a gradual and slow recovery in Japan, the U.S. and Europe until the end of 2019 but the corporate sector slowed down. The growth of China also slowed down with the corporate sector experiencing a slowdown in exports and capital expenditures for fixed assets. The expansion of the novel coronavirus diseases (COVID-19) and its impact put great downward pressure on the global economy from the beginning of 2020.
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 business performance for the fiscal year ended March 31, 2020 is as follows.
(Year ended March 31, 2020)
Due to the application of IFRS 16 Lease, the Mitsubishi Electric Group has added lease assets of 93.0 billion yen mainly as property, plant and equipment, and liabilities of 95.1 billion yen as bonds, borrowings and lease liabilities as of the date of the initial application.
Total assets as of the end of this fiscal year increased from the end of the previous fiscal year by 53.5 billion yen to 4,409.7 billion yen. The change in balance of total assets was mainly attributable to increases in property, plant and equipment by 93.8 billion yen and cash and cash equivalents by 23.3 billion yen despite decreases in inventories by 35.2 billion yen and other financial assets by 33.4 billion yen.
Inventories decreased due mainly to the slowdown of the Industrial Automation Systems segment, reduced stock of the Home Appliances segment caused by the consumption tax hike and increased demand for industrial air conditioners for schools, and the yen appreciating against other currencies. Inventory turnover improved by 0.23 from the end of the previous year to 6.43.
Total liabilities increased from the end of the previous fiscal year by 25.8 billion yen to 1,870.9 billion yen. The outstanding balances of bonds, borrowings and lease liabilities increased by 78.5 billion yen, while trade payables decreased by 32.3 billion yen, and net defined benefit liabilities also decreased by 12.8 billion yen. Meanwhile, bonds and borrowings decreased by 8.9 billion yen from the end of the previous fiscal year to 267.0 billion yen, with the ratio of bonds and borrowings to total assets recording 6.1%, representing a 0.2 percentage point decrease compared to the end of the previous fiscal year.
Mitsubishi Electric Corporation stockholders’ equity increased by 29.7 billion yen compared to the end of the previous fiscal year to 2,429.7 billion yen. The stockholders’ equity ratio was recorded at 55.1%, representing no changes from the end of the previous fiscal year. These changes referred to above primarily result from an increase from recording a net profit attributable to Mitsubishi Electric Corporation stockholders of 221.8 billion yen despite a decrease due to dividend payment of 85.8 billion yen and a loss in accumulated other comprehensive income of 81.6 billion yen caused by the yen appreciating against other currencies and a decline in stock prices.
(Year ended March 31, 2020)
Cash flows from operating activities was 395.8 billion yen (cash in) while cash flows from investing activities was 203.9 billion yen (cash out). As a result, free cash flow for the fiscal year ended March 31, 2020 increased by 162.6 billion yen compared to the previous fiscal year to 191.8 billion yen (net cash in). Meanwhile, cash flows from financing activities was 156.4 billion yen (cash out), and cash and cash equivalents at end of period increased by 23.3 billion yen from the previous fiscal year to 537.5 billion yen.
Net cash provided by operating activities increased by 156.0 billion yen from the previous fiscal year due primarily to a decrease in payment for inventories, an increase in collection of trade receivables, and an increase in depreciation caused by the application of IFRS 16 Leases.
Net cash used in investing activities increased by 6.6 billion yen from the previous fiscal year due primarily to an increase in proceeds from sale of property, plant and equipment despite an increase in purchase of investment securities and property, plant and equipment.
Net cash used in financing activities decreased by 44.3 billion yen from the previous fiscal year due mainly to increased repayment of lease liabilities caused by the application of IFRS 16 Leases.