16 May 2011 07:03
FOR IMMEDIATE RELEASE | No. 2596 |
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Yurika Fujimoto | |
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Mitsubishi Electric Corporation | Mitsubishi Electric Corporation |
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Mitsubishi Electric Announces Consolidated and Non-consolidated Financial Results for Fiscal 2011
Tokyo, May 16, 2011 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated and non-consolidated financial results for fiscal 2011 (April 1, 2010- March 31, 2011).
Consolidated Financial Results
Net sales: | 3,645.3 | billion yen | (9% increase from the previous fiscal year) |
Operating income: | 233.7 | billion yen | (148% increase from the previous fiscal year) |
Income before income taxes: | 210.2 | billion yen | (227% increase from the previous fiscal year) |
Net income attributable to Mitsubishi Electric Corp.: | 124.5 | billion yen | (340% increase from the previous fiscal year) |
Non-consolidated Financial Results
Net sales: | 2,333.8 | billion yen | (14% increase from the previous fiscal year) |
Operating income: | 97.1 | billion yen | - |
Ordinary profit: | 120.8 | billion yen | (95% increase from the previous fiscal year) |
Net income: | 78.7 | billion yen | (427% increase from the previous fiscal year) |
Although the business environment in the fiscal year ending March 31, 2011 saw some severity with the yen rapidly appreciating against foreign currencies and material prices soaring, the global economy comprehensively showed continuous improvement due to recovery mainly in emerging countries. The business conditions, however, were affected from the Great East Japan Earthquake which hit in March 2011, resulting in suspension of production and cutback, due to rolling blackouts and other factors, of capacity utilization ratio at some factories.
Under these circumstances, the Mitsubishi Electric Group has been working even harder than before to promote growth strategies that take root in its advantages, in addition to the ongoing improvements to strengthen its competitiveness and business structure.
CONSOLIDATED FINANCIAL RESULTS BY BUSINESS SEGMENT
Energy and Electric Systems
Total sales: | 1,027.7 | billion yen | (1% decrease from the previous fiscal year) |
Operating income: | 83.0 | billion yen | (8.3 billion yen increase from the previous fiscal year) |
The social infrastructure systems business saw decreases in orders and sales from the previous fiscal year due to decreases mainly in large projects for the energy systems business, despite growth in the rolling-stock equipment business both inside and outside Japan.
The building systems business experienced increases in both orders and sales from the previous fiscal year, with demand for elevators and escalators experiencing a gradual recovery in Japan as well as growth in the Chinese and ASEAN markets.
As a result, total sales for this segment decreased by 1% from the previous fiscal year. Operating income increased by 8.3 billion yen from the previous fiscal year mainly due to cost improvements.
Industrial Automation Systems
Total sales: | 927.0 | billion yen | (26% increase from the previous fiscal year) |
Operating income: | 100.0 | billion yen | (73.9 billion yen increase from the previous fiscal year) |
The factory automation systems business saw increases in both orders and sales from the previous fiscal year due to growth in demand throughout Asian markets, such as industrial machinery in China and flat panel display- and semiconductor-related investments in Korea and Taiwan.
The automotive equipment business also saw increases in both orders and sales from the previous fiscal year due to growth in demand in the global market including China and India, despite a downturn in Japan and certain markets of Western Europe due to termination of promotional incentives.
As a result, total sales for this segment increased by 26% from the previous fiscal year. Operating income increased by 73.9 billion yen from the previous fiscal year due primarily to an increase in sales.
Information and Communication Systems
Total sales: | 487.9 | billion yen | (7% decrease from the previous fiscal year) |
Operating income: | 13.7 | billion yen | (4.9 billion yen decrease from the previous fiscal year) |
The telecommunications equipment business saw decreases in both orders and sales from the previous fiscal year due to lower demand for optical broadband access systems and other communications infrastructures, despite an increase in home broadband equipment.
The information systems and services business saw lower sales compared to the previous fiscal year mainly due to a decline in the system integration business.
The electronic systems business saw a decrease in sales from the previous fiscal year due primarily to a decrease in the number of large projects in the electronics business, while orders remained unchanged from the previous fiscal year.
As a result, total sales for this segment decreased by 7% from the previous fiscal year. Operating income decreased by 4.9 billion yen from the previous fiscal year due primarily to lower sales.
Electronic Devices
Total sales: | 175.9 | billion yen | (27% increase from the previous fiscal year) |
Operating income: | 5.9 | billion yen | (13.0 billion yen improvement from the previous fiscal year) |
The semiconductor business saw increases in both orders and sales from the previous fiscal year due to expansion in demand for power modules for industrial, commercial, railway and automotive purposes, as well as optical transmission devices.
The LCD module business experienced increases in both orders and sales from the previous fiscal year due to growth in industrial- and automotive-use products.
As a result, total sales for the segment increased by 27% from the previous fiscal year. Operating income improved by 13.0 billion yen from the previous fiscal year mainly due to an increase in sales.
Home Appliances
Total sales: | 924.4 | billion yen | (12% increase from the previous fiscal year) |
Operating income: | 42.0 | billion yen | (37.1 billion yen increase from the previous fiscal year) |
The home appliances business saw a 12% increase in sales from the previous fiscal year due to increases in room air conditioners, LCD televisions and refrigerators for the Japanese market upheld by increased demand owing to a last-minute surge before the change in the eco-point incentive program in the third fiscal quarter. The heat wave last summer also lead to an increase in air conditioners inside and outside Japan, while photovoltaic systems experienced growth globally, benefitting from subsidies and other stimulus programs in various countries.
Operating income rose by 37.1 billion yen from the previous fiscal year due primarily to an increase in sales.
Others
Total sales: | 609.4 | billion yen | (10% increase from the previous fiscal year) |
Operating income: | 14.4 | billion yen | (11.2 billion yen increase from the previous fiscal year) |
Sales increased 10% from the previous fiscal year mainly in affiliated companies involved in materials procurement, logistics and engineering.
Operating income increased by 11.2 billion yen from the previous fiscal year due primarily to an increase in sales.
Fundamental dividend distribution policy
Mitsubishi Electric's fundamental policy is to comprehensively promote improvement in shareholder profits from the viewpoints of appropriate profit distribution commensurate with earnings performance of the respective fiscal year, as well as strengthening our financial standing through the company's internal reserves, with the ultimate goal of enhancing corporate value.
FY 2011 and FY 2012 dividend
With the company's business performance and financial conditions having improved in fiscal 2011, the company intends to pay a year-end retained earnings dividend of 7 yen per share for fiscal 2011. Adding the interim dividend of 5 yen per share, the total annual dividend will be 12 yen per share.
The retained earnings dividend for fiscal 2012 is still undecided.
cf. In fiscal 2010, there was no interim dividend and year-end dividend was 4 yen per share. (Annual dividend of 4 yen per share)
FINANCIAL CONDITION (CONSOLIDATED BASIS)
Assets, Liabilities, and Shareholders' Equity
The company's total assets for the fiscal year increased from the end of the previous fiscal year by 117.5 billion yen to 3,332.6 billion yen. This increase is mainly due to a 80.9 billion yen increase in cash and cash equivalents, as well as a 53.3 billion yen increase in inventories.
The balance of outstanding debts and corporate bonds fell by 53.1 billion yen from the balance as of the end of the previous fiscal year to 484.3 billion yen, resulting in a decline of its ratio to total assets to 14.5% (decline of 2.2 points compared to the end of the previous fiscal year). Trade payables increased by 64.1 billion yen, while reserves for retirement and severance benefits decreased by 39.7 billion yen.
Shareholders' equity increased by 85.7 billion yen compared to the previous fiscal year to 1,050.3 billion yen. The ratio of shareholders' equity to total assets was 31.5%, a 1.5-point increase compared to the previous fiscal year. Retained earnings increased, owing to a 124.5 billion yen net income attributable to Mitsubishi Electric Corporation. Accumulated other comprehensive income decreased by 19.4 billion yen mainly due to the yen appreciating against foreign currencies and a decline in stock prices.
Cash Flow
Cash flows from operating activities for this financial year decreased by 2.6 billion yen compared to the same period of the previous fiscal year to 327.6 billion yen (cash in). Investment cash flow increased by 11.1 billion yen compared to the previous fiscal year to 145.6 billion yen (cash out) due to increases in investments on securities, etc. As a result, free cash flow was 182.0 billion yen (cash in). Cash flows from financing activities were 89.2 billion yen (cash out) mainly due to repayment of loans.
Cash Flow related index
FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | |
Cash Flow to interest bearing debt ratio1 | 2.4 times | 2.3 times | 3.4 times | 1.8 times | 1.6 times |
Interest coverage ratio2 | 28.1 times | 26.3 times | 16.1 times | 37.8 times | 42.4 times |
1Balance of outstanding debts and corporate bonds* divided by cash flow from operating activities
*Balance of outstanding debts and corporate bonds is the average of the year-start and year-end balance of outstanding debts and corporate bonds.
2Cash flow from operating activities divided by interest paid
CURRENT FORECAST FOR FISCAL 2012
The impacts from the Great East Japan Earthquake have made the company's business environment unclear. Not only will there be direct impact to production and logistics, but it will spread to consumer spending, and also affect economies through the supply chain, while demand from reconstruction efforts can be expected.
Under these circumstances, the Mitsubishi Electric Group is striving to recover its production and to normalize its capacity utilization ratio as soon as possible. The Group will continue to increase and strengthen profitability in each business. To bolster initiatives in achieving its management targets, the Mitsubishi Electric Group is committed to continuously implementing various Group-wide measures toward uplifting its business performance and financial standing. The Group will also proceed in strongly pushing forward its growth strategies including the expansion of its global business, promotion of environment-related businesses and strengthening of its social infrastructure business.
Current forecast for fiscal 2012: consolidated
Net sales | 3,770.0 | billion yen | (3% increase from fiscal 2011) |
Operating income | 230.0 | billion yen | (2% decrease from fiscal 2011) |
Income before income taxes | 200.0 | billion yen | (5% decrease from fiscal 2011) |
Net income attributable to Mitsubishi Electric Corp. | 125.0 | billion yen | (no change from fiscal 2011) |
Impacts from the Great East Japan Earthquake have made it difficult for Mitsubishi Electric to foresee its consolidated earnings for the first half of fiscal 2012 (April 1, 2011- September 30, 2011), whose forecast remains undecided. The company intends to make an announcement promptly after the forecast is formulated.
MANAGEMENT POLICY
Fundamental Management Policy
Based on its corporate statement "Changes for the Better", the Mitsubishi Electric Group hopes to build a better tomorrow by contributing to the creation of new societies, industries and lifestyles.
Keeping this corporate approach in mind, Mitsubishi Electric will establish a solid business foundation and implement sustainable growth through a threefold balanced management policy of "Growth," "Profitability & Efficiency" and "Soundness".
Mitsubishi Electric will also work to further enhance its corporate value by integrating vast variety of its competitive electric-electronic businesses with the maximum synergistic effect, and thus make the company capable of responding to the expectations of customers, shareholders and all of its stakeholders.
Management Targets
The Mitsubishi Electric Group has established three management targets that it continuously aims to achieve: an operating income ratio of 5% or more, ROE of 10% or more and an interest-bearing debt ratio of 15% or less. Business performance for fiscal 2011 showed an operating income ratio of 6.4%, an ROE of 12.4% and an interest-bearing debt ratio of 14.5%.
Corporate Agenda
The Mitsubishi Electric Group endeavors to contribute to recovery efforts from the Great East Japan Earthquake through reconstruction of social infrastructure and the Group's other operations.
Based on its threefold balanced management policy of "Growth," "Profitability & Efficiency" and "Soundness", the Mitsubishi Electric Group will continuously improve by strengthening quality, cost, productivity, R&D, intellectual property as well as sales and service capabilities. The Mitsubishi Electric Group will also strengthen its two-tiered growth strategy, made up of its VI1 strategy, for 'making strong businesses stronger', and its AD2 strategy, for 'reinforcing solutions businesses centered on strong businesses'. By implementing continuous structural reforms, the Mitsubishi Electric Group strives to create a strong management base, while also continuing to bolster and improve its business performance.
Specifically, the Mitsubishi Electric Group will strengthen its efforts in growing business fields by: expanding its businesses in emerging markets and other markets worldwide; promoting environment-related businesses; strengthening its social infrastructure business; and rolling out solution businesses by integrating technologies and expertise from its security and other businesses. Also, with an objective of strengthening its integrated "craftsmanship," the Group will strengthen its development and productivity in software and hardware, and continue to streamline its productivity with measures such as Just-In-Time production. From the very first stages of design and development, the Mitsubishi Electric Group will strengthen activities that contribute to quality consciousness. The Group will utilize and optimally deploy human resources to enhance competitiveness, and engage in activities such as streamlining its human resources structure from a mid- and long-term perspective. The Mitsubishi Electric Group intends to improve its financial standing by further pursuing such measures as inventory reduction. In addition, the Group will build an optimal business structure and strengthen it both in global terms and for the entire corporate Group. Finally, the Group will enhance its operational structure to manage businesses through integration and coordination among multiple aspects, including research, development, procurement, production, sales and services.
In addition, the Mitsubishi Electric Group is committed to enhancing Corporate Social Responsibility (CSR) efforts based on the Corporate Mission3 and Seven Guiding Principles4. In particular, in terms of legal and ethical compliance, the Group will intensively implement internal control measures and internal training, etc., as a priority task spanning the entire consolidated Mitsubishi Electric Group. The Group will also promote environmental initiatives to create a low-carbon and recycling-based society.
Steadily executing the above strategy, the Mitsubishi Electric Group will work to further enhance its corporate value.
1VI , the first two letters of 'Victory'
2AD, the first two letters of 'Advance'
3Corporate Mission: The Mitsubishi Electric Group will continually improve its technologies and services through creativity, and, at the same time, contribute to society.
4 These principles are:
Trust: Establish relationships with all stakeholders based on strong mutual trust and respect,
Quality: Provide the best products and services with unsurpassed quality,
Technology: Pioneer new markets by promoting research and development,
Citizenship: As a global player, contribute to the development of communities and society as a whole,
Ethics: Honor high ethical standards in all endeavors,
Environment: Respect nature, and strive to protect and improve the global environment,
Growth: Assure fair earnings to build a foundation for future growth.
CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS
1. Consolidated Financial Results
(In billions of yen except where noted)
FY '10 (A) (Apr. 1, 2009 - Mar. 31, 2010) | FY '11 (B) (Apr. 1, 2010 - Mar. 31, 2011) | |||
B - A | B/A (%) | |||
Net sales | 3,353.2 | 3,645.3 | 292.0 | 109 |
Operating income | 94.3 | 233.7 | 139.4 | 248 |
Income before income taxes | 64.2 | 210.2 | 145.9 | 327 |
Net income attributable to Mitsubishi Electric Corp. | 28.2 | 124.5 | 96.2 | 440 |
Basic net income per share attributable to Mitsubishi Electric Corp. | 13.18 yen | 58.00 yen | 44.82 yen | 440 |
Notes:
1) Consolidated financial charts made in accordance with U.S. GAAP.
2) Company has 157 consolidated subsidiaries.
2. Non-Consolidated Financial Results
(In billions of yen except where noted)
FY '10 (A) (Apr. 1, 2009 - Mar. 31, 2010) | FY '11 (B) (Apr. 1, 2010 - Mar. 31, 2011) | |||
B - A | B/A (%) | |||
Net sales | 2,052.3 | 2,333.8 | 281.4 | 114 |
Operating income (loss) | (11.4) | 97.1 | 108.6 | - |
Ordinary profit | 61.9 | 120.8 | 58.8 | 195 |
Net income | 14.9 | 78.7 | 63.8 | 527 |
Dividend per share | ||||
Annual dividend | 4 yen | 12 yen | 8 yen | 300 |
Interim dividend | 0 yen | 5 yen | ||
Year-end dividend | 4 yen | 7 yen | ||
Net income per share | 6.96 yen | 36.70 yen | 29.74 yen | 527 |
CONSOLIDATED PROFIT AND LOSS STATEMENT
(In millions of yen)
FY '10 (A) (Apr. 1, 2009 - Mar. 31, 2010) | FY '11 (B) (Apr. 1, 2010 - Mar. 31, 2011) | |||||
% of total | % of total | B - A | B/A (%) | |||
Net sales | 3,353,298 | 100.0 | 3,645,331 | 100.0 | 292,033 | 109 |
Cost of sales | 2,505,095 | 74.7 | 2,622,959 | 72.0 | 117,864 | 105 |
Selling, general and administrative expenses | 736,959 | 22.0 | 784,606 | 21.5 | 47,647 | 106 |
Loss on impairment of long-lived assets | 16,942 | 0.5 | 4,005 | 0.1 | (12,937) | 24 |
Operating income | 94,302 | 2.8 | 233,761 | 6.4 | 139,459 | 248 |
Other income | 27,198 | 0.8 | 36,197 | 1.0 | 8,999 | 133 |
Interest and Dividends | 8,921 | 0.3 | 8,162 | 0.2 | (759) | 91 |
Other | 18,277 | 0.5 | 28,035 | 0.8 | 9,758 | 153 |
Other expenses | 57,241 | 1.7 | 59,721 | 1.6 | 2,480 | 104 |
Interest | 9,345 | 0.3 | 7,749 | 0.2 | (1,596) | 83 |
Equity in losses of affiliated companies | 34,801 | 1.0 | 20,285 | 0.5 | (14,516) | 58 |
Other | 13,095 | 0.4 | 31,687 | 0.9 | 18,592 | 242 |
Income before income taxes | 64,259 | 1.9 | 210,237 | 5.8 | 145,978 | 327 |
Income taxes | 31,390 | 0.9 | 77,097 | 2.1 | 45,707 | 246 |
Net income | 32,869 | 1.0 | 133,140 | 3.7 | 100,271 | 405 |
Net income attributable to the noncontrolling interests | 4,591 | 0.2 | 8,615 | 0.3 | 4,024 | 188 |
Net income attributable to Mitsubishi Electric Corp. | 28,278 | 0.8 | 124,525 | 3.4 | 96,247 | 440 |
CONSOLIDATED BALANCE SHEET
(In millions of yen)
FY '10 (A) (ending Mar. 31, 2010) | FY '11 (B) (ending Mar. 31, 2011) | B - A | |
(Assets) Current assets | 1,927,473 | 2,073,064 | 145,591 |
Cash and cash equivalents | 391,118 | 472,067 | 80,949 |
Short-term investments | 9,542 | 10,031 | 489 |
Trade receivables | 790,754 | 790,991 | 237 |
Inventories | 474,204 | 527,504 | 53,300 |
Prepaid expenses and other current assets | 261,855 | 272,471 | 10,616 |
Long-term trade receivables | 1,560 | 2,090 | 530 |
Investments | 465,653 | 448,953 | (16,700) |
Net property, plant and equipment | 517,534 | 527,453 | 9,919 |
Other assets | 302,874 | 281,119 | (21,755) |
Total assets | 3,215,094 | 3,332,679 | 117,585 |
(Liabilities and equity) Current liabilities | 1,266,909 | 1,470,387 | 203,478 |
Bank loans and current portion of long-term debt | 128,999 | 202,761 | 73,762 |
Trade payables | 633,670 | 697,789 | 64,119 |
Other current liabilities | 504,240 | 569,837 | 65,597 |
Long-term debt | 408,501 | 281,591 | (126,910) |
Retirement and severance benefits | 458,763 | 419,008 | (39,755) |
Other fixed liabilities | 59,727 | 52,668 | (7,059) |
Total equity | 1,021,194 | 1,109,025 | 87,831 |
Mitsubishi Electric Corp. shareholders' equity | 964,584 | 1,050,340 | 85,756 |
Common stock | 175,820 | 175,820 | - |
Capital surplus | 210,006 | 208,669 | (1,337) |
Retained earnings | 776,763 | 881,973 | 105,210 |
Accumulated other comprehensive income (loss) | (196,509) | (215,919) | (19,410) |
Treasury stock at cost | (1,496) | (203) | 1,293 |
Noncontrolling interests | 56,610 | 58,685 | 2,075 |
| Total liabilities and equity | 3,215,094 | 3,332,679 | 117,585 |
Balance of Debt | 537,500 | 484,352 | (53,148) |
Accumulated other comprehensive income (loss): | |||
Foreign currency translation adjustments | (41,524) | (59,400) | (17,876) |
Pension liability adjustments | (171,674) | (162,390) | 9,284 |
Unrealized gains on securities | 16,600 | 5,957 | (10,643) |
Unrealized gains (losses) on derivative instruments | 89 | (86) | (175) |
CONSOLIDATED CASH FLOW STATEMENT
(In millions of yen)
FY '10 (A) (Apr. 1, 2009 - Mar. 31, 2010) | FY '11 (B) (Apr. 1, 2010 - Mar. 31, 2011) | B - A | ||||
I | Cash flows from operating activities | |||||
1 | Net income | 32,869 | 133,140 | 100,271 | ||
2 | Adjustments to reconcile net income to net cash provided by operating activities | |||||
(1) Depreciation of tangible fixed assets and other | 136,187 | 108,818 | (27,369) | |||
(2) Decrease in deferred income taxes | 7,432 | 22,788 | 15,356 | |||
(3) Decrease (increase) in trade receivables | (16,170) | (14,594) | 1,576 | |||
(4) Decrease (increase) in inventories | 56,358 | (65,512) | (121,870) | |||
(5) Decrease in other assets | 10,977 | 2,493 | (8,484) | |||
(6) Increase in trade payables | 45,373 | 66,177 | 20,804 | |||
(7) Increase (decrease) in other liabilities | (5,978) | 14,634 | 20,612 | |||
(8) Other, net | 63,193 | 59,697 | (3,496) | |||
Net cash provided by operating activities | 330,241 | 327,641 | (2,600) | |||
II | Cash flows from investing activities | |||||
1 | Capital expenditure | (109,069) | (107,638) | 1,431 | ||
2 | Proceeds from sale of property, plant and equipment | 6,347 | 4,504 | (1,843) | ||
3 | Purchase of short-term investments and investment securities | (46,107) | (51,640) | (5,533) | ||
4 | Proceeds from sale of short-term investments and investment securities | 20,145 | 18,895 | (1,250) | ||
5 | Other, net | (5,807) | (9,751) | (3,944) | ||
Net cash used in investing activities | (134,491) | (145,630) | (11,139) | |||
I + II | Free cash flow | 195,750 | 182,011 | (13,739) | ||
III | Cash flows from financing activities | |||||
1 | Proceeds from long-term debt | 92,711 | 100 | (92,611) | ||
2 | Repayment of long-term debt | (106,584) | (62,248) | 44,336 | ||
3 | Increase (decrease) in bank loans, net | (146,487) | (5,114) | 141,373 | ||
4 | Dividends paid | - | (19,315) | (19,315) | ||
5 | Purchase of treasury stock | (872) | (46) | 826 | ||
6 | Reissuance of treasury stock | 13 | 5 | (8) | ||
7 | Other, net | (3,988) | (2,610) | 1,378 | ||
Net cash provided by (used in) financing activities | (165,207) | (89,228) | 75,979 | |||
IV | Effect of exchange rate changes on cash and cash equivalents | 1,959 | (11,834) | (13,793) | ||
V | Net increase in cash and cash equivalents | 32,502 | 80,949 | 48,447 | ||
VI | Cash and cash equivalents at beginning of period | 358,616 | 391,118 | 32,502 | ||
VII | Cash and cash equivalents at end of period | 391,118 | 472,067 | 80,949 | ||
CONSOLIDATED SEGMENT INFORMATION
1. Sales and Operating Income by Business Segment
(In millions of yen)
| Business Segment | FY '10 (Apr. 1, 2009 - Mar. 31, 2010) | FY '11 (Apr. 1, 2010 - Mar. 31, 2011) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (loss) (B) | Sales (C) | Operating income (D) | ||||
Energy and Electric Systems | 1,039,669 | 74,727 | 1,027,749 | 83,055 | (11,920) | 8,328 | 99 |
Industrial Automation Systems | 733,132 | 26,138 | 927,002 | 100,089 | 193,870 | 73,951 | 126 |
Information and Communication Systems | 526,161 | 18,672 | 487,915 | 13,743 | (38,246) | (4,929) | 93 |
Electronic Devices | 138,985 | (7,141) | 175,910 | 5,901 | 36,925 | 13,042 | 127 |
Home Appliances | 824,679 | 4,809 | 924,478 | 42,008 | 99,799 | 37,199 | 112 |
Others | 552,981 | 3,204 | 609,416 | 14,475 | 56,435 | 11,271 | 110 |
Subtotal | 3,815,607 | 120,409 | 4,152,470 | 259,271 | 336,863 | 138,862 | 109 |
Eliminations and other | (462,309) | (26,107) | (507,139) | (25,510) | (44,830) | 597 | - |
Total | 3,353,298 | 94,302 | 3,645,331 | 233,761 | 292,033 | 139,459 | 109 |
*Notes: Inter-segment sales are included in the above chart.
2. Sales and Operating Income by Location
(In millions of yen)
| Location | FY '10 (Apr. 1, 2009 - Mar. 31, 2010) | FY '11 (Apr. 1, 2010 - Mar. 31, 2011) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales (C) | Operating income (D) | ||||
Japan | 2,886,502 | 49,673 | 3,176,605 | 177,354 | 290,103 | 127,681 | 110 |
North America | 205,713 | 5,531 | 229,958 | 1,363 | 24,245 | (4,168) | 112 |
Asia (excluding Japan) | 445,722 | 27,337 | 583,827 | 43,734 | 138,105 | 16,397 | 131 |
Europe | 282,822 | 3,091 | 293,952 | 7,830 | 11,130 | 4,739 | 104 |
Others | 33,140 | 1,949 | 38,200 | 4,329 | 5,060 | 2,380 | 115 |
Subtotal | 3,853,899 | 87,581 | 4,322,542 | 234,610 | 468,643 | 147,029 | 112 |
Eliminations | (500,601) | 6,721 | (677,211) | (849) | (176,610) | (7,570) | - |
Total | 3,353,298 | 94,302 | 3,645,331 | 233,761 | 292,033 | 139,459 | 109 |
*Notes: Inter-segment sales are included in the above chart.
3. Sales by Location of Customers
(In millions of yen)
| Location | FY '10 (Apr. 1, 2009 - Mar. 31, 2010) | FY '11 (Apr. 1, 2010 - Mar. 31, 2011) | B - A | B/A (%) | ||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | |||||
Japan | 2,262,834 | 67.5 | 2,416,090 | 66.3 | 153,256 | 107 | ||
North America | 236,409 | 7.0 | 251,071 | 6.9 | 14,662 | 106 | ||
Asia (excluding Japan) | 488,613 | 14.6 | 603,261 | 16.6 | 114,648 | 123 | ||
Europe | 286,284 | 8.5 | 289,440 | 7.9 | 3,156 | 101 | ||
Others | 79,158 | 2.4 | 85,469 | 2.3 | 6,311 | 108 | ||
Total overseas sales | 1,090,464 | 32.5 | 1,229,241 | 33.7 | 138,777 | 113 | ||
Consolidated total | 3,353,298 | 100.0 | 3,645,331 | 100.0 | 292,033 | 109 | ||
Cautionary Statement
The expectation of operating results herein and any associated statement to be made orally with respect to the Company's current plans, estimates, strategies and beliefs and any other statements that are not historical facts are forward-looking statements. Words such as "expects", "anticipates", "plans", "believes", "scheduled", "estimated", "targeted" along with any variations of these words and similar expressions are intended to identify forward-looking statements which include but are not limited to projections of revenues, earnings, performance and production.
The Mitsubishi Electric Group is involved in the development, manufacture and sales in a wide rage of fields including Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances, and these operations stretch out 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 to the date of announcement, you are requested to kindly take note that 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 Mitsubishi Electric 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 Mitsubishi Electric'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 Mitsubishi Electric Group's performance.
(5) Fund raising
An increase in interest rates, the yen interest rate in particular, would increase Mitsubishi Electric'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
We 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 Mitsubishi Electric Group.
(8) Flaws or defects in products orservices
We 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 Mitsubishi Electric group.
(9) Litigation and other legal proceedings
The Mitsubishi Electric 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 Mitsubishi Electric Group's performance.
(11) Business restructuring
The Mitsubishi Electric Group may record losses due to restructuring measures.
(12) Natural disasters
The Mitsubishi Electric Group's operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters.
(13) Other significant factors
The Mitsubishi Electric 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
With 90 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, 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. The company recorded consolidated group sales of 3,645.3 billion yen (US$ 43.9 billion*) in the fiscal year ended March 31, 2011. For more information visit http://www.MitsubishiElectric.com
*At an exchange rate of 83 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2011