2 Feb 2017 07:00
FOR IMMEDIATE RELEASE | No. 3081 |
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Investor Relations Inquiries | Media Inquiries |
Investor Relations Group, Corporate Finance Division | Public Relations Division |
Mitsubishi Electric Corporation | Mitsubishi Electric Corporation |
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Mitsubishi Electric Announces Consolidated Financial Resultsfor the First 9 Months and Third Quarter of Fiscal 2017
TOKYO, February 2, 2017 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its financial results for the first 9 months and third quarter ended December 31, 2016, of the current fiscal year ending March 31, 2017 (fiscal 2017).
1. Consolidated First 9 Months Results (April 1, 2016 - December 31, 2016)
Net sales: | 2,947.1 billion yen | (5% decrease from the same period last year) |
Operating income: | 175.5 billion yen | (15% decrease from the same period last year) |
Income before income taxes: | 196.1 billion yen | (10% decrease from the same period last year) |
Net income attributable to Mitsubishi Electric Corp.: | 135.3 billion yen | (11% decrease from the same period last year) |
In the first 9 months of fiscal 2017, the business environment was buoyed by the expanding U.S. economy and gradual recoveries in Japan and Europe, as well as modest improvement in China's economic slowdown. In addition, the yen became stronger against foreign currencies compared to the previous year, but weakened after the U.S. presidential election in November.
Under these circumstances, consolidated net sales for the first 9 months of fiscal 2017 decreased by 5% compared to the same period of the previous fiscal year to 2,947.1 billion yen, with decreased sales in the Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems and Electronic Devices segments. Consolidated operating income decreased by 15% compared to the same period of the previous fiscal year to 175.5 billion yen, due to decreased profits in the Energy and Electric Systems, Industrial Automation Systems and Electronic Devices segments.
Consolidated Financial Results by Business Segment (First 9 months, Fiscal 2017)
Energy and Electric Systems
Total sales: | 784.7 billion yen | (3% decrease from the same period last year) |
Operating income: | 13.7 billion yen | (4.6 billion yen decrease from the same period last year) |
The social infrastructure systems business saw no change in orders, while sales decreased compared to the same period of the previous fiscal year due to decreases in the public utility systems business in Japan as well as the power systems and the transportation systems business outside Japan. In addition, the stronger yen had the negative influences.
The building systems business experienced decreases in both orders and sales compared to the same period of the previous fiscal year, due primarily to negative influences caused by the stronger yen, despite the growth in the renewal business in Japan, as well as the installation business of new elevators and escalators outside Japan.
As a result, total sales for this segment decreased by 3% from the same period of the previous fiscal year. Operating income decreased by 4.6 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Industrial Automation Systems
Total sales: | 951.9 billion yen | (4% decrease from the same period last year) |
Operating income: | 102.5 billion yen | (24.6 billion yen decrease from the same period last year) |
The factory automation systems business saw an increase in orders from the same period of the previous fiscal year primarily due to growth in capital expenditures in the fields of smartphones, electrical cars in China and organic light emitting diodes (OLED) mainly in Korea, while sales decreased from the same period of the previous fiscal year due to decreased capital expenditures in photovoltaic systems in Japan and the negative influences caused by the stronger yen.
The automotive equipment business saw decreases in both orders and sales from the same period of the previous fiscal year due primarily to stagnation in car sales in Japan and the negative influences caused by the stronger yen, despite growth in car sales mainly in Europe.
As a result, total sales for this segment decreased by 4% from the same period of the previous fiscal year. Operating income decreased by 24.6 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Information and Communication Systems
Total sales: | 285.4 billion yen | (22% decrease from the same period last year) |
Operating income: | 4.4 billion yen | (Unchanged from the same period last year) |
The telecommunications equipment business saw decreases in both orders and sales compared to the same period of the previous fiscal year due primarily to the sellout of an affiliated company in the beginning of the fiscal year and decreased sales of communications infrastructure equipment.
The information systems and service business saw a decrease in sales compared to the same period of the previous fiscal year, mainly owing to a decrease in the system integrations business.
The electronic systems business saw decreases in both orders and sales compared to the same period of the previous fiscal year due to a shift in the portfolio of large-scale projects in the space systems business.
As a result, total sales for this segment decreased by 22% compared to the same period of the previous fiscal year. Operating income was unchanged from the same period of the previous fiscal year due primarily to a shift in project portfolios.
Electronic Devices
Total sales: | 135.8 billion yen | (18% decrease from the same period last year) |
Operating income: | 5.1 billion yen | (13.8 billion yen decrease from the same period last year) |
The electronic devices business saw an increase in orders from the same period of the previous fiscal year due to an increase in optical communication devices, while sales decreased by 18% compared to the same period of the previous fiscal year due to a decrease in demand for power modules, along with the negative influences caused by the stronger yen.
As a result, operating income decreased by 13.8 billion yen compared to the same period of the previous fiscal year due primarily to a decrease in sales.
Home Appliances
Total sales: | 746.4 billion yen | (2% increase from the same period last year) |
Operating income: | 57.6 billion yen | (9.4 billion yen increase from the same period last year) |
The home appliances business saw an increase in sales of 2% compared to the same period of the previous fiscal year due to increases in sales of air conditioners in the European, Chinese and North American markets and in sales of residential and industrial air conditioners in Japan, despite the negative influences caused by the stronger yen.
Operating income increased by 9.4 billion yen compared to the same period of the previous fiscal year largely due to an increase in sales.
Others
Total sales: | 514.5 billion yen | (1% increase from the same period last year) |
Operating income: | 15.2 billion yen | (1.6 billion yen increase from the same period last year) |
Sales increased by 1% compared to the same period of the previous fiscal year mainly due to an increase in sales among affiliated companies involved in materials procurement.
Operating income increased by 1.6 billion yen from the same period of the previous fiscal year due primarily to an increase in sales.
2. Consolidated Third-quarter Results (October 1, 2016 - December 31, 2016)
Net sales: | 974.7 billion yen | (5% decrease from the same period last year) |
Operating income: | 53.8 billion yen | (33% decrease from the same period last year) |
Income before income taxes: | 72.4 billion yen | (15% decrease from the same period last year) |
Net income attributable to Mitsubishi Electric Corp.: | 46.9 billion yen | (22% decrease from the same period last year) |
Consolidated net sales for this quarter, from October through December 2016, was 974.7 billion yen, a 5% decrease from the same period of the previous fiscal year, due primarily to decreased sales in the Energy and Electric Systems and Information and Communication Systems segments.
Consolidated operating income was 53.8 billion yen, a 33% decrease from the same period of the previous fiscal year, with decreased profits in the Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems and Home Appliances segments.
Consolidated Financial Results by Business Segment (Third Quarter, Fiscal 2017)
Energy and Electric Systems
Total sales: | 259.2 billion yen | (9% decrease from the same period last year) |
Operating income: | 4.5 billion yen | (10.0 billion yen decrease from the same period last year) |
The social infrastructure systems business saw an increase in orders compared to the same period of the previous fiscal year due mainly to an increase in the transportations systems business in Japan, while sales decreased compared to the same period of the previous fiscal year due primarily to decreases in the power systems business worldwide as well as the public utility systems business in Japan.
The building systems business experienced decreases in both orders and sales compared to the same period of the previous fiscal year, owing to negative influences caused by the stronger yen, despite the growth in the renewal business in Japan and the installation business of new elevators and escalators outside Japan.
As a result, total sales for this segment decreased by 9% from the same period of the previous fiscal year. Operating income decreased by 10.0 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Industrial Automation Systems
Total sales: | 334.3 billion yen | (2% increase from the same period last year) |
Operating income: | 40.4 billion yen | (2.8 billion yen decrease from the same period last year) |
The factory automation systems business saw increases in both orders and sales from the same period of the previous fiscal year mainly due to a growth in capital expenditures in the fields of smartphones, electrical cars in China and organic light emitting diodes (OLED) mainly in Korea.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to a growth in car sales mainly in Europe.
As a result, total sales for this segment increased by 2% from the same period of the previous fiscal year. Operating income decreased by 2.8 billion yen from the same period of the previous fiscal year due primarily to the negative influences caused by the stronger yen.
Information and Communication Systems
Total sales: | 87.1 billion yen | (38% decrease from the same period last year) |
Operating income: | 0.5 billion yen | (7.6 billion yen decrease from the same period last year) |
The telecommunications equipment business saw decreases in both orders and sales compared to the same period of the previous fiscal year due primarily to the sellout of an affiliated company in the beginning of the fiscal year and decreased sales of communications infrastructure equipment.
The information systems and service business saw a decrease in sales compared to the same period of the previous fiscal year, owing to a decrease in the system integrations business.
The electronic systems business saw an increase in orders compared to the same period of the previous fiscal year owing to increased large-scale projects in the space systems business, while sales decreased compared
to the same period of the previous fiscal year due primarily to a shift in project portfolios in the space systems business.
As a result, total sales for this segment decreased by 38% compared to the same period of the previous fiscal year. Operating income decreased by 7.6 billion yen from the same period of the previous fiscal year due primarily to a decrease in sales.
Electronic Devices
Total sales: | 49.3 billion yen | (15% increase from the same period last year) |
Operating income: | 3.3 billion yen | (0.7 billion yen increase from the same period last year) |
The electronic devices business saw an increase in orders from the same period of the previous fiscal year due mainly to recovering demand for power modules, and total sales increased by 15% compared to the same period of the previous fiscal year.
As a result, operating income increased by 0.7 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Home Appliances
Total sales: | 227.0 billion yen | (3% increase from the same period last year) |
Operating income: | 8.9 billion yen | (6.0 billion yen decrease from the same period last year) |
The home appliances business saw an increase in sales of 3% compared to the same period of the previous fiscal year due mainly to an increase in sales of air conditioners in the European and Chinese markets, as well as residential and industrial air conditioners in Japan.
Operating income decreased by 6.0 billion yen compared to the same period of the previous fiscal year primarily due to the negative influences caused by the stronger yen.
Others
Total sales: | 177.8 billion yen | (4% increase from the same period last year) |
Operating income: | 5.9 billion yen | (0.4 billion yen decrease from the same period last year) |
Sales increased by 4% compared to the same period of the previous fiscal year mainly due to an increase in sales among affiliated companies involved in materials procurement.
Operating income decreased by 0.4 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios.
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 82.5 billion yen to 3,977.3 billion yen. The change in the balance of total assets was mainly due to a 19.7 billion yen decrease in cash and cash equivalents and a 167.4 billion yen decrease in trade receivables due to factors including credit collection, on the other hand, work-in-process to be recorded in commensurate with progress in job orders under pertinent contracts increased by 113.8 billion yen.
Total liabilities decreased from the end of the previous fiscal year by 186.5 billion yen to 1,935.9 billion yen due mainly to a 79.6 billion yen decrease in the outstanding balance of trade payables and a 24.6 billion yen decrease in retirement and severance benefits, mainly resulting from an increase in pension assets following a rise in stock prices. The outstanding balances of debts and corporate bonds decreased by 31.9 billion yen from the end of the previous fiscal year to 372.0 billion yen. The ratio of interest bearing debt to total assets declined to 9.4%, which was a 0.6 point decrease compared to the end of the previous fiscal year.
Mitsubishi Electric Corporation shareholders' equity increased by 101.6 billion yen compared to the end of the previous fiscal year to 1,940.4 billion yen. The shareholders' equity ratio was recorded at 48.8%, representing a 3.5 point increase compared to the end of the previous fiscal year. These changes referred above primarily resulted from recording a net income attributable to Mitsubishi Electric Corporation of 135.3 billion yen, and an increase in accumulated other comprehensive income by 25.2 billion yen caused by such factors as the rise in stock prices, despite a decrease in dividend payment of 57.9 billion yen.
Cash flows from operating activities increased by 6.0 billion yen compared to the same period of the previous fiscal year to 171.5 billion yen (cash in). Cash flows from investing activities decreased by 98.4 billion yen compared to the same period of the previous fiscal year to 90.8 billion yen (cash out) due to a decrease in proceeds from the purchases of short-term investments and investment securities and other factors. As a result, free cash flow was 80.6 billion yen (cash in). Cash flows from financing activities were 97.7 billion yen (cash out) mainly due to dividend payment.
Forecast for Fiscal 2017 (year ending March 31, 2017)
The consolidated earnings forecast for fiscal 2017, ending March 31, 2017, has been revised from the previous forecast announced on October 31, 2016, primarily due to improved performance forecast in the Industrial Automation Systems and Electric Devices segments, resulted mainly by the company's revised terms of foreign currency rates in which it sees the yen weaker in and after the fourth quarter of fiscal 2017.
Consolidated Earnings Forecast for Fiscal 2017
Consolidated | Previous forecast (announced October 31) | Current forecast | |
Net sales: | 4,150.0 billion yen | 4,200.0 billion yen | (4% decrease from fiscal 2016) |
Operating income: | 250.0 billion yen | 255.0 billion yen | (15% decrease from fiscal 2016) |
Income before income taxes: | 265.0 billion yen | 275.0 billion yen | (14% decrease from fiscal 2016) |
Net income attributable to Mitsubishi Electric Corp.: | 185.0 billion yen | 190.0 billion yen | (17% decrease from fiscal 2016) |
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. |
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Exchange rates in and after the fourth quarter of fiscal 2017 have been revised to 110 yen to the US dollar, ten yen weaker than the previous rate, and 115 yen to the euro, five yen weaker.
Consolidated Financial Results Summary
1. Consolidated First 9 Months Results
(In billions of yen except where noted)
FY '16 9 months (A)(Apr. 1, 2015 - Dec. 31, 2015) | FY '17 9 months (B)(Apr. 1, 2016 - Dec. 31, 2016) | |||
B - A | B/A (%) | |||
Net sales | 3,091.6 | 2,947.1 | (144.4) | 95 |
Operating income | 207.3 | 175.5 | (31.7) | 85 |
Income before income taxes | 218.7 | 196.1 | (22.5) | 90 |
Net income attributable to Mitsubishi Electric Corp. | 152.8 | 135.3 | (17.4) | 89 |
Basic net income per share attributable to Mitsubishi Electric Corp. | 71.18 yen | 63.06 yen | (8.12 yen) | 89 |
2. Consolidated Third-quarter Results
(In billions of yen except where noted)
FY '16 Q3 (A)(Oct. 1, 2015 -Dec. 31, 2015) | FY '17 Q3 (B)(Oct. 1, 2016 - Dec. 31, 2016) | |||
B - A | B/A (%) | |||
Net sales | 1,028.3 | 974.7 | (53.5) | 95 |
Operating income | 80.3 | 53.8 | (26.4) | 67 |
Income before income taxes | 85.6 | 72.4 | (13.2) | 85 |
Net income attributable to Mitsubishi Electric Corp. | 59.8 | 46.9 | (12.8) | 78 |
Basic net income per share attributable to Mitsubishi Electric Corp. | 27.89 yen | 21.90 yen | (5.99 yen) | 79 |
Notes:
1) Consolidated financial charts made in accordance with U.S. GAAP.
2) The Company has 218 consolidated subsidiaries.
Consolidated Profit and Loss Statement (First 9 Months, Fiscal 2017)
(In millions of yen)
FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) | FY '17 9 months (Apr. 1, 2016 - Dec. 31, 2016) | ||||||
B - A | B/A (%) | ||||||
(A) | % of total | (B) | % of total | ||||
Net sales | 3,091,608 | 100.0 | 2,947,113 | 100.0 | (144,495) | 95 | |
Cost of sales | 2,142,075 | 69.3 | 2,042,322 | 69.3 | (99,753) | 95 | |
Selling, general and administrative expenses | 738,214 | 23.9 | 727,270 | 24.6 | (10,944) | 99 |
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Loss on impairment of long-lived assets | 4,004 | 0.1 | 1,944 | 0.1 | (2,060) | 49 | |
Operating income | 207,315 | 6.7 | 175,577 | 6.0 | (31,738) | 85 | |
Other income | 41,027 | 1.3 | 46,646 | 1.6 | 5,619 | 114 | |
Interest and dividends | 6,384 | 0.2 | 6,330 | 0.2 | (54) | 99 | |
Equity in earnings of affiliated companies | 20,102 | 0.6 | 14,351 | 0.5 | (5,751) | 71 | |
Other | 14,541 | 0.5 | 25,965 | 0.9 | 11,424 | 179 | |
Other expenses | 29,599 | 0.9 | 26,028 | 0.9 | (3,571) | 88 | |
Interest | 2,670 | 0.1 | 2,154 | 0.1 | (516) | 81 | |
Other | 26,929 | 0.8 | 23,874 | 0.8 | (3,055) | 89 | |
Income before income taxes | 218,743 | 7.1 | 196,195 | 6.7 | (22,548) | 90 | |
Income taxes | 56,000 | 1.8 | 51,695 | 1.8 | (4,305) | 92 | |
Net income | 162,743 | 5.3 | 144,500 | 4.9 | (18,243) | 89 | |
Net income attributable to the noncontrolling interests | 9,941 | 0.4 | 9,161 | 0.3 | (780) | 92 | |
Net income attributable to Mitsubishi Electric Corp. | 152,802 | 4.9 | 135,339 | 4.6 | (17,463) | 89 | |
Consolidated Comprehensive Income Statement (First 9 Months, Fiscal 2017)
(In millions of yen)
FY '16 9 months (A) (Apr. 1, 2015 - Dec. 31, 2015) | FY '17 9 months (B) (Apr. 1, 2016 - Dec. 31, 2016) | B - A | ||
Net income | 162,743 | 144,500 | (18,243) | |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | (36,930) | (26,781) | 10,149 | |
Pension liability adjustments | (8,267) | 23,386 | 31,653 | |
Unrealized gains (losses) on securities | (3,215) | 26,519 | 29,734 | |
Unrealized gains on derivative instruments | 31 | 182 | 151 | |
Total | (48,381) | 23,306 | 71,687 | |
Comprehensive income | 114,362 | 167,806 | 53,444 | |
Comprehensive income attributable to the noncontrolling interests | 5,719 | 7,248 | 1,529 | |
Comprehensive income attributable to Mitsubishi Electric Corp. | 108,643 | 160,558 | 51,915 | |
Consolidated Profit and Loss Statement (Third Quarter, Fiscal 2017)
(In millions of yen)
FY '16 Q3 (Oct. 1, 2015 - Dec. 31, 2015) | FY '17 Q3 (Oct. 1, 2016 - Dec. 31, 2016) | ||||||
B - A | B/A (%) | ||||||
(A) | % of total | (B) | % of total | ||||
Net sales | 1,028,323 | 100.0 | 974,759 | 100.0 | (53,564) | 95 | |
Cost of sales | 709,305 | 69.0 | 683,967 | 70.2 | (25,338) | 96 | |
Selling, general and administrative expenses | 238,717 | 23.2 | 236,962 | 24.3 | (1,755) | 99 | |
Operating income | 80,301 | 7.8 | 53,830 | 5.5 | (26,471) | 67 | |
Other income | 14,454 | 1.4 | 19,498 | 2.0 | 5,044 | 135 | |
Interest and dividends | 2,105 | 0.2 | 2,068 | 0.2 | (37) | 98 | |
Equity in earnings of affiliated companies | 6,841 | 0.7 | 4,828 | 0.5 | (2,013) | 71 | |
Other | 5,508 | 0.5 | 12,602 | 1.3 | 7,094 | 229 | |
Other expenses | 9,070 | 0.9 | 859 | 0.1 | (8,211) | 9 | |
Interest | 840 | 0.1 | 592 | 0.1 | (248) | 70 | |
Other | 8,230 | 0.8 | 267 | 0.0 | (7,963) | 3 | |
Income before income taxes | 85,685 | 8.3 | 72,469 | 7.4 | (13,216) | 85 | |
Income taxes | 22,075 | 2.1 | 22,537 | 2.3 | 462 | 102 | |
Net income | 63,610 | 6.2 | 49,932 | 5.1 | (13,678) | 78 | |
Net income attributable to the noncontrolling interests | 3,733 | 0.4 | 2,935 | 0.3 | (798) | 79 | |
Net income attributable to Mitsubishi Electric Corp. | 59,877 | 5.8 | 46,997 | 4.8 | (12,880) | 78 | |
Consolidated Comprehensive Income Statement (Third Quarter, Fiscal 2017)
(In millions of yen)
FY '16 Q3 (A) (Oct. 1, 2015 - Dec. 31, 2015) | FY '17 Q3 (B) (Oct. 1, 2016 - Dec. 31, 2016) | B - A | ||
Net income | 63,610 | 49,932 | (13,678) | |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | (4,472) | 66,979 | 71,451 | |
Pension liability adjustments | 17,710 | 28,162 | 10,452 | |
Unrealized gains on securities | 26,938 | 46,710 | 19,772 | |
Unrealized gains on derivative instruments | 48 | 224 | 176 | |
Total | 40,224 | 142,075 | 101,851 | |
Comprehensive income | 103,834 | 192,007 | 88,173 | |
Comprehensive income attributable to the noncontrolling interests | 3,483 | 9,844 | 6,361 | |
Comprehensive income attributable to Mitsubishi Electric Corp. | 100,351 | 182,163 | 81,812 | |
Consolidated Balance Sheet
(In millions of yen)
FY '16 (A) (ended Mar. 31, 2016) | FY ' 17 9 months (B) (ended Dec. 31, 2016) | B - A | |
(Assets) Current assets | 2,551,863 | 2,476,428 | (75,435) |
Cash and cash equivalents | 574,170 | 554,452 | (19,718) |
Trade receivables | 1,035,168 | 868,635 | (166,533) |
Inventories | 644,127 | 758,006 | 113,879 |
Prepaid expenses and other current assets | 298,398 | 295,335 | (3,063) |
Long-term trade receivables | 4,661 | 3,703 | (958) |
Investments | 537,706 | 568,770 | 31,064 |
Net property, plant and equipment | 712,599 | 720,026 | 7,427 |
Other assets | 253,112 | 208,416 | (44,696) |
Total assets | 4,059,941 | 3,977,343 | (82,598) |
(Liabilities) Current liabilities | 1,507,943 | 1,395,126 | (112,817) |
Bank loans and current portion of long-term debt | 116,532 | 120,302 | 3,770 |
Trade payables | 773,714 | 694,047 | (79,667) |
Other current liabilities | 617,697 | 580,777 | (36,920) |
Long-term debt | 287,507 | 251,789 | (35,718) |
Retirement and severance benefits | 229,750 | 205,086 | (24,664) |
Other fixed liabilities | 97,238 | 83,905 | (13,333) |
Total liabilities | 2,122,438 | 1,935,906 | (186,532) |
(Equity) Mitsubishi Electric Corp. shareholders' equity | 1,838,773 | 1,940,407 | 101,634 |
Common stock | 175,820 | 175,820 | - |
Capital surplus | 211,999 | 211,891 | (108) |
Retained earnings | 1,502,027 | 1,579,403 | 77,376 |
Accumulated other comprehensive income (loss) | (50,699) | (25,480) | 25,219 |
Treasury stock at cost | (374) | (1,227) | (853) |
Noncontrolling interests | 98,730 | 101,030 | 2,300 |
Total equity | 1,937,503 | 2,041,437 | 103,934 |
| Total liabilities and equity | 4,059,941 | 3,977,343 | (82,598) |
Balance of Debt | 404,039 | 372,091 | (31,948) |
Accumulated other comprehensive income (loss): | |||
Foreign currency translation adjustments | 39,847 | 15,072 | (24,775) |
Pension liability adjustments | (184,231) | (160,845) | 23,386 |
Unrealized gains on securities | 93,742 | 120,201 | 26,459 |
Unrealized gains (losses) on derivative instruments | (57) | 92 | 149 |
Consolidated Cash Flow Statement
(In millions of yen)
FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) (A) | FY '17 9 months (Apr. 1, 2016 - Dec. 31, 2016) (B) | B - A | ||
I | Cash flows from operating activities | |||
1 | Net income | 162,743 | 144,500 | (18,243) |
2 | Adjustments to reconcile net income to net cash provided by operating activities | |||
(1) Depreciation of tangible fixed assets and other | 105,949 | 101,452 | (4,497) | |
(2) Decrease in trade receivables | 189,355 | 149,645 | (39,710) | |
(3) Decrease (increase) in inventories | (82,509) | (118,535) | (36,026) | |
(4) Increase (decrease) in trade payables | (118,264) | (60,735) | 57,529 | |
(5) Other, net | (91,785) | (44,790) | 46,995 | |
Net cash provided by operating activities | 165,489 | 171,537 | 6,048 | |
II | Cash flows from investing activities | |||
1 | Capital expenditure | (126,477) | (114,351) | 12,126 |
2 | Proceeds from sale of property, plant and equipment | 1,716 | 6,194 | 4,478 |
3 | Purchase of short-term investments and investment securities (net of cash acquired) | (57,394) | (3,906) | 53,488 |
4 | Proceeds from sale of short-term investments and investment securities (net of cash disposed) | 4,925 | 19,181 | 14,256 |
5 | Other, net | (12,041) | 2,017 | 14,058 |
Net cash used in investing activities | (189,271) | (90,865) | 98,406 | |
I+II Free cash flow | (23,782) | 80,672 | 104,454 | |
III | Cash flows from financing activities | |||
1 | Proceeds from long-term debt | 80,105 | 147 | (79,958) |
2 | Repayment of long-term debt | (71,367) | (33,074) | 38,293 |
3 | Increase (decrease) in bank loans, net | (1,458) | (652) | 806 |
4 | Dividends paid | (57,963) | (57,963) | 0 |
5 | Purchase of treasury stock | (36) | (1,096) | (1,060) |
6 | Reissuance of treasury stock | 0 | 0 | 0 |
7 | Other, net | (4,396) | (5,154) | (758) |
Net cash provided by (used in) financing activities | (55,115) | (97,792) | (42,677) | |
IV | Effect of exchange rate changes on cash and cash equivalents | (11,609) | (2,598) | 9,011 |
V | Net increase (decrease) in cash and cash equivalents | (90,506) | (19,718) | 70,788 |
VI | Cash and cash equivalents at beginning of period | 568,517 | 574,170 | 5,653 |
VII | Cash and cash equivalents at end of period | 478,011 | 554,452 | 76,441 |
Consolidated Segment Information (First 9 Months, Fiscal 2017)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment | FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) | FY '17 9 months (Apr. 1, 2016 - Dec. 31, 2016) | C - A | D - B | C/A (%) | |||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | |||||
Energy and Electric Systems | 808,616 | 18,398 | 784,744 | 13,758 | (23,872) | (4,640) | 97 | |
Industrial Automation Systems | 988,751 | 127,179 | 951,988 | 102,569 | (36,763) | (24,610) | 96 | |
Information and Communication Systems | 363,895 | 4,445 | 285,462 | 4,451 | (78,433) | 6 | 78 | |
Electronic Devices | 166,155 | 18,960 | 135,850 | 5,116 | (30,305) | (13,844) | 82 | |
Home Appliances | 731,334 | 48,182 | 746,404 | 57,625 | 15,070 | 9,443 | 102 | |
Others | 509,609 | 13,688 | 514,571 | 15,297 | 4,962 | 1,609 | 101 | |
Subtotal | 3,568,360 | 230,852 | 3,419,019 | 198,816 | (149,341) | (32,036) | 96 | |
Eliminations and other | (476,752) | (23,537) | (471,906) | (23,239) | 4,846 | 298 | - | |
Total | 3,091,608 | 207,315 | 2,947,113 | 175,577 | (144,495) | (31,738) | 95 | |
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location | FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) | FY '17 9 months (Apr. 1, 2016 - Dec. 31, 2016) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | ||||
Japan | 2,469,056 | 118,404 | 2,325,814 | 86,041 | (143,242) | (32,363) | 94 |
North America | 331,719 | 4,825 | 302,591 | 4,809 | (29,128) | (16) | 91 |
Asia (excluding Japan) | 783,040 | 69,727 | 756,770 | 69,912 | (26,270) | 185 | 97 |
Europe | 302,666 | 12,914 | 313,419 | 11,023 | 10,753 | (1,891) | 104 |
Others | 37,171 | 1,187 | 33,751 | 1,740 | (3,420) | 553 | 91 |
Subtotal | 3,923,652 | 207,057 | 3,732,345 | 173,525 | (191,307) | (33,532) | 95 |
Eliminations | (832,044) | 258 | (785,232) | 2,052 | 46,812 | 1,794 | - |
Total | 3,091,608 | 207,315 | 2,947,113 | 175,577 | (144,495) | (31,738) | 95 |
*Note: Inter-segment sales are included in the above chart.
3. Sales by Location of Customers
(In millions of yen)
Location of Customers | FY '16 9 months (Apr. 1, 2015 - Dec. 31, 2015) | FY '17 9 months (Apr. 1, 2016 - Dec. 31, 2016) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 1,681,801 | 54.4 | 1,616,573 | 54.9 | (65,228) | 96 | ||
North America | 331,635 | 10.7 | 304,670 | 10.3 | (26,965) | 92 | ||
Asia (excluding Japan) | 729,255 | 23.6 | 680,074 | 23.1 | (49,181) | 93 | ||
Europe | 282,554 | 9.1 | 286,728 | 9.7 | 4,174 | 101 | ||
Others | 66,363 | 2.2 | 59,068 | 2.0 | (7,295) | 89 | ||
Total overseas sales | 1,409,807 | 45.6 | 1,330,540 | 45.1 | (79,267) | 94 | ||
Consolidated total | 3,091,608 | 100.0 | 2,947,113 | 100.0 | (144,495) | 95 | ||
Consolidated Segment Information (Third Quarter, Fiscal 2017)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment | FY '16 Q3 (Oct. 1, 2015 - Dec. 31, 2015) | FY '17 Q3 (Oct. 1, 2016 - Dec. 31, 2016) | C - A | D - B | C/A (%) | |||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | |||||
Energy and Electric Systems | 284,838 | 14,625 | 259,273 | 4,576 | (25,565) | (10,049) | 91 | |
Industrial Automation Systems | 327,231 | 43,260 | 334,368 | 40,458 | 7,137 | (2,802) | 102 | |
Information and Communication Systems | 139,858 | 8,260 | 87,196 | 583 | (52,662) | (7,677) | 62 | |
Electronic Devices | 42,947 | 2,609 | 49,313 | 3,342 | 6,366 | 733 | 115 | |
Home Appliances | 220,196 | 14,988 | 227,007 | 8,957 | 6,811 | (6,031) | 103 | |
Others | 171,125 | 6,321 | 177,800 | 5,902 | 6,675 | (419) | 104 | |
Subtotal | 1,186,195 | 90,063 | 1,134,957 | 63,818 | (51,238) | (26,245) | 96 | |
Eliminations and other | (157,872) | (9,762) | (160,198) | (9,988) | (2,326) | (226) | - | |
Total | 1,028,323 | 80,301 | 974,759 | 53,830 | (53,564) | (26,471) | 95 | |
*Note: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
Location | FY '16 Q3 (Oct. 1, 2015 - Dec. 31, 2015) | FY '17 Q3 (Oct. 1, 2016 - Dec. 31, 2016) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | ||||
Japan | 844,016 | 57,185 | 785,379 | 37,679 | (58,637) | (19,506) | 93 |
North America | 108,381 | 386 | 98,735 | 689 | (9,646) | 303 | 91 |
Asia (excluding Japan) | 238,177 | 21,447 | 250,617 | 20,642 | 12,440 | (805) | 105 |
Europe | 95,606 | 3,159 | 100,356 | 2,380 | 4,750 | (779) | 105 |
Others | 12,265 | 612 | 11,732 | 863 | (533) | 251 | 96 |
Subtotal | 1,298,445 | 82,789 | 1,246,819 | 62,253 | (51,626) | (20,536) | 96 |
Eliminations | (270,122) | (2,488) | (272,060) | (8,423) | (1,938) | (5,935) | - |
Total | 1,028,323 | 80,301 | 974,759 | 53,830 | (53,564) | (26,471) | 95 |
*Note: Inter-segment sales are included in the above chart
3. Sales by Location of Customers
(In millions of yen)
Location of Customers | FY '16 Q3 (Oct. 1, 2015 - Dec. 31, 2015) | FY '17 Q3 (Oct. 1, 2016 - Dec. 31, 2016) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 576,280 | 56.0 | 534,678 | 54.9 | (41,602) | 93 | ||
North America | 108,699 | 10.6 | 101,932 | 10.4 | (6,767) | 94 | ||
Asia (excluding Japan) | 234,295 | 22.8 | 229,080 | 23.5 | (5,215) | 98 | ||
Europe | 88,458 | 8.6 | 90,282 | 9.3 | 1,824 | 102 | ||
Others | 20,591 | 2.0 | 18,787 | 1.9 | (1,804) | 91 | ||
Total overseas sales | 452,043 | 44.0 | 440,081 | 45.1 | (11,962) | 97 | ||
Consolidated total | 1,028,323 | 100.0 | 974,759 | 100.0 | (53,564) | 95 | ||
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 its 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 4,394.3 billion yen (US$ 38.8 billion*) in the fiscal year ended March 31, 2016. For more information visit:
www.MitsubishiElectric.com
*At an exchange rate of 113 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2016