30 Jul 2015 10:56
FOR IMMEDIATE RELEASE | No. 2949 |
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Mitsubishi Electric Corporation | Mitsubishi Electric Corporation |
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Mitsubishi Electric Announces Consolidated Financial Resultsfor the First Quarter of Fiscal 2016
http://www.rns-pdf.londonstockexchange.com/rns/5629U_-2015-7-30.pdf
TOKYO, July 30, 2015 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated financial results for the first quarter ending June 30, 2015, of the current fiscal year ending March 31, 2016 (fiscal 2016).
Consolidated Financial Results
Net sales: | 988.4 | billion yen | (9% increase from the same quarter last year) |
Operating income: | 54.6 | billion yen | (8% decrease from the same quarter last year) |
Income before income taxes: | 67.1 | billion yen | (1% decrease from the same quarter last year) |
Net income attributable to Mitsubishi Electric Corp.: | 46.3 | billion yen | (8% increase from the same quarter last year) |
The business environment in the first quarter (from April through June 2015) of the fiscal year 2016 experienced a continued trend of buoyancy in the U.S. and gradual economic recovery in Europe, in addition to the Japanese market gradually recovering in capital expenditures with from the impact of the rise in consumption taxes receding. Meanwhile, China and other East Asian markets experienced a continued slowdown, while some emerging markets saw higher levels of economic stagnation. In addition, the weakening of the yen advanced against the U.S. dollar.
Under these circumstances, consolidated net sales in the first quarter increased by 9% compared to the same period of the previous fiscal year to 988.4 billion yen, owing to such factors as increased sales in the Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances segments. Consolidated operating income decreased by 8% compared to the same period of the previous fiscal year to 54.6 billion yen, due to lower profits in the Energy and Electric Systems and Home Appliances segments.
Consolidated Financial Results by Business Segment
Energy and Electric Systems
Total sales: | 236.6 | billion yen | (6% increase from the same quarter last year) |
Operating income (loss): | (6.6 | billion yen) | (14.4 billion yen decline from the same quarter last year) |
The social infrastructure systems business saw an increase in orders compared to the same period of the previous fiscal year due primarily to an increase in the rolling-stock equipment business in Japan and the power systems businesses in and outside Japan. Sales, meanwhile, remained unchanged compared to the same period of the previous fiscal year.
The building systems business experienced a decrease in orders compared to the same period of the previous fiscal year, owing to a decrease in new installations of elevators and escalators in Japan. Sales saw an increase compared to the same period of the previous fiscal year due to increases in new installations of elevators and escalators outside Japan. The weaker yen also had a positive influence.
As a result, total sales for this segment increased by 6% from the same period of the previous fiscal year. Operating income declined by 14.4 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolio and lower profit in the power systems business.
Industrial Automation Systems
Total sales: | 328.3 | billion yen | (11% increase from the same quarter last year) |
Operating income: | 42.8 | billion yen | (7.7 billion yen increase from the same quarter last year) |
The factory automation systems business saw increases in both orders and sales from the same period of the previous fiscal year due to growth in capital expenditures relating to the automotive industry and facility replacements by manufacturers in Japan, and additionally due to the weaker yen.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to growth in the car sales market in North America and Europe, as well as the positive influence of the weaker yen.
As a result, total sales for this segment increased by 11% from the same period of the previous fiscal year. Operating income increased by 7.7 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales: | 95.4 | billion yen | (3% increase from the same quarter last year) |
Operating income (loss): | (1.7 | billion yen) | (unchanged from the same quarter last year) |
Orders in the telecommunications systems business remained unchanged compared to the same period of the previous fiscal year. Sales saw a decrease from the same period of the previous fiscal year due primarily to a decrease in communications infrastructure equipment.
The information systems and service business saw an increase in sales compared to the same period of the previous fiscal year, owing to growth in the system integrations business.
The electronic systems business saw increases both in orders and sales compared to the same period of the previous fiscal year largely due to an increase in orders for large-scale projects in the space systems business.
As a result, total sales for this segment increased by 3% compared to the same period of the previous fiscal year. Operating income remained unchanged compared to the same period of the previous fiscal year due primarily to a shift in project portfolio.
Electronic Devices
Total sales: | 66.1 | billion yen | (29% increase from the same quarter last year) |
Operating income: | 12.3 | billion yen | (8.4 billion yen increase from the same quarter last year) |
The electronic devices business saw a decrease in orders from the same period of the previous fiscal year due to a decrease in demand mainly for power modules used in railcar and industrial applications. Sales experienced an increase compared to the same period of the previous fiscal year due to an increase primarily for power modules used in automotive applications and for optical communication devices, and additionally due to the weaker yen.
As a result, total sales for this segment increased by 29% compared to the same period of the previous fiscal year. Operating income increased by 8.4 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Home Appliances
Total sales: | 254.0 | billion yen | (8% increase from the same quarter last year) |
Operating income: | 16.2 | billion yen | (5.0 billion yen decrease from the same quarter last year) |
The home appliances business saw an increase in sales of 8% from the same period of the previous fiscal year due to an increase in sales of air conditioners for homes in Japan, as well as the weaker yen.
Operating income decreased by 5.0 billion yen compared to the same period of the previous fiscal year largely due to a decline in prices.
Others
Total sales: | 163.1 | billion yen | (3% decrease from the same quarter last year) |
Operating income: | 0.9 | billion yen | (0.8 billion yen decrease from the same quarter last year) |
Sales decreased by 3% compared to the same period of the previous fiscal year mainly due to a decrease in sales of affiliated companies involved in materials procurement.
Operating income decreased by 0.8 billion yen compared to the same period of the previous fiscal year due primarily to a decrease in sales.
Financial Standing
An Analysis on the Status of Assets, Liabilities, Equity and Cash Flow on a Consolidated Basis
The Company's total assets as of the end of this fiscal quarter decreased from the end of the previous fiscal year by 102.0 billion yen to 3,957.3 billion yen. The change in the balance of total assets is mainly attributable to increases in the balances of cash and cash equivalents by 18.9 billion yen, and of inventories by 59.6 billion yen as a result of work-in-process as recorded in commensurate with progress in job orders under pertinent contracts, while trade receivables decreased by 194.0 billion yen primarily as a result of credit collection.
Total liabilities decreased from the end of the previous fiscal year by 135.0 billion yen to 1,994.2 billion yen. The outstanding balances of debts and corporate bonds decreased by 5.5 billion yen from the end of the previous fiscal year to 376.4 billion yen, resulting in a rise in the ratio of interest bearing debt to total assets to 9.5%, representing a 0.1 point increase compared to the end of the previous fiscal year. The outstanding balance of trade payables decreased by 87.9 billion yen, and retirement and severance benefits decreased by 19.2 billion yen mainly resulting from an increase in pension assets following a rise in stock prices.
Mitsubishi Electric Corporation shareholders' equity increased by 30.3 billion yen compared to the end of the previous fiscal year to 1,872.5 billion yen. Shareholders' equity ratio was recorded at 47.3%, representing a 1.9 point increase compared to the end of the previous fiscal year. The changes referred to above primarily resulted from recording a net income attributable to Mitsubishi Electric Corporation of 46.3 billion yen, along with an increase in accumulated other comprehensive income by 22.7 billion yen backed up by such factors as the rising stock prices and weaker yen, despite dividend payment of 38.6 billion yen.
Cash flows from operating activities for this quarter decreased by 28.6 billion yen compared to the same period of the previous fiscal year to 99.9 billion yen (cash in). Cash flows from investing activities increased by 1.0 billion yen compared to the same period of the previous fiscal year to 39.9 billion yen (cash out) due to increases in purchases of tangible fixed assets and other factors. As a result, free cash flow was 59.9 billion yen (cash in). Cash flows from financing activities were 43.6 billion yen (cash out) mainly due to dividend payment.
Forecast for Fiscal 2016
The current consolidated earnings forecast for the first half of fiscal 2016, ending September 30, 2015, and for fiscal 2016, ending March 31, 2016, is unchanged from the announcement on April 28, 2015 as stated below.
First Half of Fiscal 2016 Consolidated Earnings Forecast
Net sales | 2,060.0 | billion yen | (4% increase from the same period last year) |
Operating income | 140.0 | billion yen | (15% increase from the same period last year) |
Income before income taxes | 148.0 | billion yen | (1% increase from the same period last year) |
Net income attributable to Mitsubishi Electric Corp. | 104.0 | billion yen | (6% increase from the same period last year) |
Fiscal 2016 Consolidated Earnings Forecast
Net sales | 4,370.0 | billion yen | (1% increase from the previous fiscal year) |
Operating income | 320.0 | billion yen | (1% increase from the previous fiscal year) |
Income before income taxes | 320.0 | billion yen | (1% decrease from the previous fiscal year) |
Net income attributable to Mitsubishi Electric Corp. | 220.0 | billion yen | (6% decrease from the previous fiscal year) |
Note: The results forecast above is based on assumptions deemed reasonable by the Company at the present time, and actual results may differ significantly from forecasts. Please refer to the cautionary statement at the end. |
Consolidated Financial Results Summary
(In billions of yen except where noted)
FY '15 Q1 (A) (Apr. 1, 2014 - Jun. 30, 2014) | FY '16 Q1 (B) (Apr. 1, 2015 - Jun. 30, 2015) | |||
B - A | B/A (%) | |||
Net sales | 910.6 | 988.4 | 77.7 | 109 |
Operating income | 59.3 | 54.6 | (4.6) | 92 |
Income before income taxes | 67.8 | 67.1 | (0.6) | 99 |
Net income attributable to Mitsubishi Electric Corp. | 43.0 | 46.3 | 3.2 | 108 |
Basic net income per share attributable to Mitsubishi Electric Corp. | 20.04 yen | 21. 57yen | 1.53 yen | 108 |
Notes:
1) Consolidated financial charts made in accordance with U.S. GAAP.
2) The Company has 176 consolidated subsidiaries.
Consolidated Profit and Loss Statement
(In millions of yen)
FY '15 Q1 (Apr. 1, 2014 - Jun. 30, 2014) | FY '16 Q1 (Apr. 1, 2015 - Jun. 30, 2015) | |||||
(A) | % of total | (B) | % of total | B - A | B/A (%) | |
Net sales | 910,648 | 100.0 | 988,440 | 100.0 | 77,792 | 109 |
Cost of sales | 627,644 | 68.9 | 691,048 | 69.9 | 63,404 | 110 |
Selling, general and administrative expenses | 223,685 | 24.6 | 242,760 | 24.6 | 19,075 | 109 |
Operating income | 59,319 | 6.5 | 54,632 | 5.5 | (4,687) | 92 |
Other income | 18,389 | 2.1 | 17,215 | 1.8 | (1,174) | 94 |
Interest and Dividends | 2,902 | 0.4 | 3,034 | 0.3 | 132 | 105 |
Equity in earnings of affiliated companies | 3,595 | 0.4 | 5,049 | 0.5 | 1,454 | 140 |
Other | 11,892 | 1.3 | 9,132 | 1.0 | (2,760) | 77 |
Other expenses | 9,849 | 1.1 | 4,670 | 0.5 | (5,179) | 47 |
Interest | 953 | 0.1 | 926 | 0.1 | (27) | 97 |
Other | 8,896 | 1.0 | 3,744 | 0.4 | (5,152) | 42 |
Income before income taxes | 67,859 | 7.5 | 67,177 | 6.8 | (682) | 99 |
Income taxes | 22,255 | 2.5 | 17,498 | 1.8 | (4,757) | 79 |
Net income | 45,604 | 5.0 | 49,679 | 5.0 | 4,075 | 109 |
Net income attributable to the noncontrolling interests | 2,583 | 0.3 | 3,362 | 0.3 | 779 | 130 |
Net income attributable to Mitsubishi Electric Corp. | 43,021 | 4.7 | 46,317 | 4.7 | 3,296 | 108 |
Consolidated Comprehensive Income Statement
(In millions of yen)
FY '15 Q1 (A) (Apr. 1, 2014 - Jun. 30, 2014) | FY '16 Q1 (B) (Apr. 1, 2015 - Jun. 30, 2015) | B - A | ||
Net income | 45,604 | 49,679 | 4,075 | |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | (12,136) | 5,531 | 17,667 | |
Pension liability adjustments | 1,238 | 10,872 | 9,634 | |
Unrealized gains on securities | 6,138 | 6,807 | 669 | |
Unrealized gains (losses) on derivative instruments | (48) | 37 | 85 | |
Total | (4,808) | 23,247 | 28,055 | |
Comprehensive income | 40,796 | 72,926 | 32,130 | |
Comprehensive income attributable tothe noncontrolling interests | 1,759 | 3,904 | 2,145 | |
Comprehensive income attributable toMitsubishi Electric Corp. | 39,037 | 69,022 | 29,985 | |
Consolidated Balance Sheet
(In millions of yen)
FY '15 (A) (ending Mar. 31, 2015) | FY '16 Q1 (B) (ending Jun. 30, 2015) | B - A | |
(Assets) Current assets | 2,633,445 | 2,533,181 | (100,264) |
Cash and cash equivalents | 568,517 | 587,488 | 18,971 |
Trade receivables | 1,048,542 | 854,521 | (194,021) |
Inventories | 705,420 | 765,118 | 59,698 |
Prepaid expenses and other current assets | 310,966 | 326,054 | 15,088 |
Long-term trade receivables | 5,633 | 5,579 | (54) |
Investments | 595,828 | 596,933 | 1,105 |
Net property, plant and equipment | 706,475 | 711,764 | 5,289 |
Other assets | 118,070 | 109,903 | (8,167) |
Total assets | 4,059,451 | 3,957,360 | (102,091) |
(Liabilities) Current liabilities | 1,612,582 | 1,495,964 | (116,618) |
Bank loans and current portion of long-term debt | 164,402 | 159,438 | (4,964) |
Trade payables | 807,289 | 719,291 | (87,998) |
Other current liabilities | 640,891 | 617,235 | (23,656) |
Long-term debt | 217,592 | 217,027 | (565) |
Retirement and severance benefits | 182,282 | 163,002 | (19,280) |
Other fixed liabilities | 116,828 | 118,255 | 1,427 |
Total liabilities | 2,129,284 | 1,994,248 | (135,036) |
(Equity) Mitsubishi Electric Corp. shareholders' equity |
1,842,203 | 1,872,567 | 30,364 |
Common stock | 175,820 | 175,820 | - |
Capital surplus | 211,155 | 211,155 | - |
Retained earnings | 1,331,496 | 1,339,171 | 7,675 |
Accumulated other comprehensive income (loss) | 124,064 | 146,769 | 22,705 |
Treasury stock at cost | (332) | (348) | (16) |
Noncontrolling interests | 87,964 | 90,545 | 2,581 |
Total equity | 1,930,167 | 1,963,112 | 32,945 |
| Total liabilities and equity | 4,059,451 | 3,957,360 | (102,091) |
Balance of Debt | 381,994 | 376,465 | (5,529) |
Accumulated other comprehensive income (loss): | |||
Foreign currency translation adjustments | 102,959 | 108,124 | 5,165 |
Pension liability adjustments | (98,108) | (87,236) | 10,872 |
Unrealized gains on securities | 119,252 | 125,891 | 6,639 |
Unrealized gains (losses) on derivative instruments | (39) | (10) | 29 |
Consolidated Cash Flow Statement
(In millions of yen)
FY '15 Q1 (Apr. 1, 2014 - Jun. 30, 2014) (A) | FY '16 Q1 (Apr. 1, 2015 - Jun. 30, 2015) (B) | B - A | ||
I | Cash flows from operating activities | |||
1 | Net income | 45,604 | 49,679 | 4,075 |
2 | Adjustments to reconcile net income to net cash provided by operating activities | |||
(1) Depreciation of tangible fixed assets and other | 27,294 | 31,754 | 4,460 | |
(2) Decrease in trade receivables | 174,458 | 200,224 | 25,766 | |
(3) Decrease (increase) in inventories | (87,571) | (53,769) | 33,802 | |
(4) Increase (decrease) in trade payables | (41,085) | (84,802) | (43,717) | |
(5) Other, net | 9,910 | (43,167) | (53,077) | |
Net cash provided by operating activities | 128,610 | 99,919 | (28,691) | |
II | Cash flows from investing activities | |||
1 | Capital expenditure | (36,177) | (39,169) | (2,992) |
2 | Proceeds from sale of property, plant and equipment | 217 | 707 | 490 |
3 | Purchase of short-term investments and investment securities (net of cash acquired) | (67) | (1,006) | (939) |
4 | Proceeds from sale of short-term investments and investment securities | 2,313 | 1,281 | (1,032) |
5 | Other, net | (5,189) | (1,779) | 3,410 |
Net cash used in investing activities | (38,903) | (39,966) | (1,063) | |
I + II | Free cash flow | 89,707 | 59,953 | (29,754) |
III | Cash flows from financing activities | |||
1 | Proceeds from long-term debt | 40,244 | - | (40,244) |
2 | Repayment of long-term debt | (33,476) | (2,818) | 30,658 |
3 | Increase (decrease) in bank loans, net | 8,407 | (1,421) | (9,828) |
4 | Dividends paid | (23,615) | (38,642) | (15,027) |
5 | Purchase of treasury stock | (6) | (16) | (10) |
6 | Other, net | 124 | (779) | (903) |
Net cash provided by (used in) financing activities | (8,322) | (43,676) | (35,354) | |
IV | Effect of exchange rate changes on cash and cash equivalents | (2,408) | 2,694 | 5,102 |
V | Net increase in cash and cash equivalents | 78,977 | 18,971 | (60,006) |
VI | Cash and cash equivalents at beginning of period | 418,049 | 568,517 | 150,468 |
VII | Cash and cash equivalents at end of period | 497,026 | 587,488 | 90,462 |
Consolidated Segment Information
1. Sales and Operating Income by Business Segment
(In millions of yen)
| Business Segment | FY '15 Q1 (Apr. 1, 2014 - Jun. 30, 2014) | FY '16 Q1 (Apr. 1, 2015 - Jun. 30, 2015) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (loss) (B) | Sales (C) | Operating income (loss) (D) | ||||
Energy and Electric Systems | 223,233 | 7,830 | 236,681 | (6,666) | 13,448 | (14,496) | 106 |
Industrial Automation Systems | 295,327 | 35,159 | 328,350 | 42,867 | 33,023 | 7,708 | 111 |
Information and Communication Systems | 92,540 | (1,764) | 95,409 | (1,755) | 2,869 | 9 | 103 |
Electronic Devices | 51,235 | 3,859 | 66,117 | 12,332 | 14,882 | 8,473 | 129 |
Home Appliances | 234,717 | 21,250 | 254,092 | 16,244 | 19,375 | (5,006) | 108 |
Others | 168,058 | 1,719 | 163,190 | 903 | (4,868) | (816) | 97 |
Subtotal | 1,065,110 | 68,053 | 1,143,839 | 63,925 | 78,729 | (4,128) | 107 |
Eliminations and other | (154,462) | (8,734) | (155,399) | (9,293) | (937) | (559) | - |
Total | 910,648 | 59,319 | 988,440 | 54,632 | 77,792 | (4,687) | 109 |
*Notes: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
| Location | FY '15 Q1 (Apr. 1, 2014 - Jun. 30, 2014) | FY '16 Q1 (Apr. 1, 2015 - Jun. 30, 2015) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | ||||
Japan | 732,248 | 39,143 | 758,371 | 26,815 | 26,123 | (12,328) | 104 |
North America | 90,850 | 2,252 | 112,155 | 1,076 | 21,305 | (1,176) | 123 |
Asia (excluding Japan) | 244,426 | 22,424 | 289,551 | 29,018 | 45,125 | 6,594 | 118 |
Europe | 99,319 | 3,582 | 104,298 | 4,202 | 4,979 | 620 | 105 |
Others | 9,894 | 238 | 12,276 | 207 | 2,382 | (31) | 124 |
Subtotal | 1,176,737 | 67,639 | 1,276,651 | 61,318 | 99,914 | (6,321) | 108 |
Eliminations | (266,089) | (8,320) | (288,211) | (6,686) | (22,122) | 1,634 | - |
Total | 910,648 | 59,319 | 988,440 | 54,632 | 77,792 | (4,687) | 109 |
*Notes: Inter-segment sales are included in the above chart.
3. Sales by Location of Customers
(In millions of yen)
| Location of Customers | FY '15 Q1 (Apr. 1, 2014 - Jun. 30, 2014) | FY '16 Q1 (Apr. 1, 2015 - Jun. 30, 2015) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 484,129 | 53.2 | 499,505 | 50.5 | 15,376 | 103 | ||
North America | 91,064 | 10.0 | 112,816 | 11.4 | 21,752 | 124 | ||
Asia (excluding Japan) | 222,821 | 24.4 | 256,604 | 26.0 | 33,783 | 115 | ||
Europe | 93,786 | 10.3 | 97,868 | 9.9 | 4,082 | 104 | ||
Others | 18,848 | 2.1 | 21,647 | 2.2 | 2,799 | 115 | ||
Total overseas sales | 426,519 | 46.8 | 488,935 | 49.5 | 62,416 | 115 | ||
Consolidated total | 910,648 | 100.0 | 988,440 | 100.0 | 77,792 | 109 | ||
Cautionary Statement
The Mitsubishi Electric Group (hereafter "the Group") is involved in development, manufacture and sales in a wide range of fields including Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances, and these operations extend globally, not only inside Japan, but also in North America, Europe, Asia and other regions. While the statements herein are based on certain assumptions and premises that the Company trusts and considers to be reasonable under the circumstances on the date of announcement, actual operating results are subject to change due to any of the factors as contemplated hereunder and/or any additional factor unforeseeable as of the date of this announcement. Such factors materially affecting the expectations expressed herein shall include but are not limited to the following:
(1) Important trends
The Group's operations may be affected by trends in the global economy, social conditions, laws, tax codes and regulations.
(2) Foreign currency exchange rates
Fluctuations in foreign currency markets may affect the Group's sales of exported products and purchases of imported materials that are denominated in U.S. dollars or euros, as well as its Asian production bases' sales of exported products and purchases of imported materials that are denominated in foreign currencies.
(3) Stock markets
A fall in stock market prices may cause Mitsubishi Electric to record devaluation losses on marketable securities, or cause an increase in retirement benefit obligations in accordance with a decline in the fair value of pension assets.
(4) Supply/demand balance for products and procurement conditions for materials and components
A decline in prices and shipments due to changes in the supply/demand balance, as well as an increase in material prices due to a worsening of material and component procurement conditions, may adversely affect the Group's performance.
(5) Fund raising
An increase in interest rates, the yen interest rate in particular, would increase the Group's interest expenses.
(6) Significant patent matters
Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses.
(7) Environmental legislation or relevant issues
The Group may incur losses or expenses owing to changes in environmental legislation or the occurrence of environmental issues. Such changes in legislation or the occurrence of environmental issues may also impact manufacturing and all corporate activities of the Group.
(8) Flaws or defects in products or services
The Group may incur losses or expenses resulting out of flaws or defects in products or services, and the lowered reputation of the quality of all our products and services may affect the entire Group.
(9) Litigation and other legal proceedings
The Group's operations may be affected by lawsuits or other legal proceedings against Mitsubishi Electric, its subsidiaries and/or equity-method affiliated companies.
(10) Disruptive changes
Disruptive changes in technology, development of products using new technology, timing of production and market introduction may adversely affect the Group's performance.
(11) Business restructuring
The Group may record losses due to restructuring measures.
(12) Information security
The performance of the Group may be affected by computer virus infections, unauthorized access and other unpredictable incidents that lead to the loss or leakage of personal information held by the Group or confidential information regarding the Group's business such as its technology, sales and other operations.
(13) Natural disasters
The Group's operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters.
(14) Other significant factors
The Group's operations may be affected by the outbreak of social or political upheaval due to terrorism, war, pandemic by new strains of influenza and other diseases, or other factors.
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About Mitsubishi Electric Corporation
With over 90 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Embracing the spirit of its corporate statement, Changes for the Better, and its environmental statement, Eco Changes, Mitsubishi Electric endeavors to be a global, leading green company, enriching society with technology. The company recorded consolidated group sales of 4,323.0 billion yen (US$ 36.0 billion*) in the fiscal year ended March 31, 2015. For more information visit:
http://www.MitsubishiElectric.com
*At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2015