29 Oct 2018 07:00
FOR IMMEDIATE RELEASE | No. 3223 |
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Investor Relations Inquiries | Media Inquiries |
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Investor Relations Group, Corporate Finance Division | Public Relations Division |
Mitsubishi Electric Corporation | Mitsubishi Electric Corporation |
Cad.Irg@rk.MitsubishiElectric.co.jp | prd.gnews@nk.MitsubishiElectric.co.jp |
| www.MitsubishiElectric.com/news/ |
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Mitsubishi Electric Announces Consolidated Financial Resultsfor the First Half and Second Quarter of Fiscal 2019
TOKYO, October 29, 2018 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated financial results for the first half and second quarter, ended September 30, 2018, of the current fiscal year ending March 31, 2019 (fiscal 2019).
1. Consolidated Half-year Results (April 1, 2018 - September 30, 2018)
Net sales: | 2,170.1 | billion yen | (3% increase from the same period last year) |
Operating income: | 125.9 | billion yen | (18% decrease from the same period last year) |
Income before income taxes: | 141.2 | billion yen | (15% decrease from the same period last year) |
Net income attributable to Mitsubishi Electric Corp. stockholders: | 102.3 | billion yen | (15% decrease from the same period last year) |
The global economy in the first half of fiscal 2019, from April through September 2018, saw a slight slowdown in China, a buoyant expansion in the U.S. and gradual trends of recovery in Japan and Europe. In addition, from August, the yen weakened against the U.S. dollar and appreciated against the euro compared to the same period of the previous fiscal year.
Under these circumstances, consolidated net sales in the first half of fiscal 2019 increased by 3% compared to the same period of the previous fiscal year to 2,170.1 billion yen with increased sales in the Energy and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments. Consolidated operating income decreased by 18% compared to the same period of the previous fiscal year to 125.9 billion yen, due to decreased profits in the Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances segments.
Income before income taxes decreased by 15% compared to the same period of the previous fiscal year to 141.2 billion yen.
Net income attributable to Mitsubishi Electric Corporation stockholders decreased by 15% compared to the same period of the previous fiscal year to 102.3 billion yen.
Consolidated Financial Results by Business Segment (First Half, Fiscal 2019)
Energy and Electric Systems
Total sales: | 568.6 | billion yen | (2% increase from the same period last year which recorded 557.1 billion yen) |
Operating income: | 15.5 | billion yen | (4.9 billion yen increase from the same period last year which recorded 10.6 billion yen) |
The social infrastructure systems business saw increases in both orders and sales from the same period of the previous fiscal year. This was due primarily to an increase in orders in the transportation systems business in Japan and an increase in sales in the power systems business in Japan.
The building systems business saw orders and sales both substantially unchanged compared to the same period of the previous fiscal year due primarily to buoyancies in the renewal business in Japan and in new installations of elevators and escalators mainly in Korea and India despite decreases in Japan and China.
As a result, total sales for this segment increased by 2% from the same period of the previous fiscal year. Operating income increased by 4.9 billion yen from the same period of the previous fiscal year mainly due to an increase in sales.
Industrial Automation Systems
Total sales: | 730.3 | billion yen | (4% increase from the same period last year which recorded 703.7 billion yen) |
Operating income: | 77.9 | billion yen | (18.3 billion yen decrease from the same period last year which recorded 96.3 billion yen) |
The factory automation systems business saw a decrease in orders, while sales remained substantially unchanged, from the same period of the previous fiscal year due primarily to a temporary slowdown in capital expenditures in the fields of organic light emitting diodes (OLED) and smartphones outside Japan, despite buoyant demand for exports mainly by machinery and semiconductor-related equipment manufacturers in Japan.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to increases in Japan, other markets in Asia and Europe, as well as increased sales in electric-vehicle related equipment in response to market growth worldwide.
As a result, total sales for this segment increased by 4% from the same period of the previous fiscal year. Operating income decreased by 18.3 billion yen from the same period of the previous fiscal year due primarily to a shift in product mix, increases in material prices and upfront investment for growth drivers.
Information and Communication Systems
Total sales: | 186.8 | billion yen | (2% decrease from the same period last year which recorded 191.2 billion yen) |
Operating income: | 2.5 | billion yen | (0.7 billion yen decrease from the same period last year which recorded 3.2 billion yen) |
The telecommunications systems business saw decreases in both orders and sales compared to the same period of the previous fiscal year due primarily to decreased demand in communications infrastructure equipment.
The information systems and service business saw decreases in both orders and sales compared to the same period of the previous fiscal year, mainly due to a shift in projects for the system integrations business.
The electronic systems business saw an increase in orders, while sales remained substantially unchanged, compared to the same period of the previous fiscal year mainly due to an increase in large-scale projects in the defense systems business.
As a result, total sales for this segment decreased by 2% compared to the same period of the previous fiscal year. Operating income decreased by 0.7 billion yen compared to the same period of the previous fiscal year due primarily to a decrease in sales.
Electronic Devices
Total sales: | 101.8 | billion yen | (2% increase from the same period last year which recorded 99.5 billion yen) |
Operating income: | 1.2 | billion yen | (5.9 billion yen decrease from the same period last year which recorded 7.2 billion yen) |
The electronic devices business saw an increase in orders, and sales rose by 2% from the same period of the previous fiscal year due to an increase in demand mainly for power modules used in automotive and railcar applications, despite decreased demand for optical communication devices.
Operating income decreased by 5.9 billion yen compared to the same period of the previous fiscal year due primarily to a shift in product mix.
Home Appliances
Total sales: | 557.1 | billion yen | (3% increase from the same period last year which recorded 539.2 billion yen) |
Operating income: | 33.6 | billion yen | (5.7 billion yen decrease from the same period last year which recorded 39.4 billion yen) |
The home appliances business saw an increase in sales of 3% from the same period of the previous fiscal year due to an increase in sales of air conditioners for Europe, Japan and North America.
Operating income decreased by 5.7 billion yen compared to the same period of the previous fiscal year due primarily to increases in material prices and sales expenses.
Others
Total sales: | 327.8 | billion yen | (5% increase from the same period last year which recorded 310.7 billion yen) |
Operating income: | 10.3 | billion yen | (0.6 billion yen increase from the same period last year which recorded 9.6 billion yen) |
Sales increased by 5% compared to the same period of the previous fiscal year due primarily to an increase in sales at affiliated companies involved in materials procurement.
Operating income increased by 0.6 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
2. Consolidated Second-quarter Results (July 1, 2018 - September 30, 2018)
Net sales: | 1,119.1 | billion yen | (4% increase from the same period last year) |
Operating income: | 64.3 | billion yen | (17% decrease from the same period last year) |
Income before income taxes: | 72.5 | billion yen | (15% decrease from the same period last year) |
Net income attributable to Mitsubishi Electric Corp. stockholders: | 54.7 | billion yen | (14% decrease from the same period last year) |
Consolidated net sales for this quarter, from July through September 2018, was 1,119.1 billion yen, a 4% increase from the same period of the previous fiscal year, due primarily to increased sales in the Energy and Electric Systems, Industrial Automation Systems, Information and Communication Systems and Home Appliances segments.
Consolidated operating income was 64.3 billion yen, a decrease of 17% from the same period of the previous fiscal year, with decreased profits in the Industrial Automation Systems, Information and Communication Systems, Electronic Devices and Home Appliances segments.
Income before income taxes decreased by 15% compared to the same period of the previous fiscal year to 72.5 billion yen.
Net income attributable to Mitsubishi Electric Corporation stockholders decreased by 14% compared to the same period of the previous fiscal year to 54.7 billion yen.
Consolidated Financial Results by Business Segment (Second Quarter, Fiscal 2019)
Energy and Electric Systems
Total sales: | 301.2 | billion yen | (4% increase from the same period last year which recorded 288.5 billion yen) |
Operating income: | 9.5 | billion yen | (5.6 billion yen increase from the same period last year which recorded 3.9 billion yen) |
The social infrastructure systems business saw increases in both orders and sales from the same period of the previous fiscal year. This was due primarily to an increase in orders in the transportation systems business in Japan and an increase in sales in the power systems business in Japan.
The building systems business saw a decrease in orders, while sales remained substantially unchanged, compared to the same period of the previous fiscal year due primarily to a slowdown in demand related to the Tokyo Olympic and Paralympic Games, as well as impact from the stagnant Chinese market, despite buoyancies in the renewal business in Japan and the new installation of elevators and escalators mainly in India and Korea.
As a result, total sales for this segment increased by 4% from the same period of the previous fiscal year. Operating income increased by 5.6 billion yen from the same period of the previous fiscal year mainly due to an increase in sales.
Industrial Automation Systems
Total sales: | 369.3 | billion yen | (5% increase from the same period last year which recorded 352.8 billion yen) |
Operating income: | 33.1 | billion yen | (12.4 billion yen decrease from the same period last year which recorded 45.5 billion yen) |
The factory automation systems business saw a decrease in orders from the same period of the previous fiscal year due primarily to a temporary slowdown in capital expenditures in the fields of organic light emitting diodes (OLED) and smartphones outside Japan, while sales increased from the same period of the previous fiscal year due primarily to buoyant demand for exports mainly by machinery and semiconductor-related equipment manufacturers in Japan.
The automotive equipment business saw increases in both orders and sales from the same period of the previous fiscal year due primarily to increases in Japan, Europe and Asian markets outside Japan, as well as increased sales in electric-vehicle related equipment in response to market growth worldwide.
As a result, total sales for this segment increased by 5% from the same period of the previous fiscal year. Operating income decreased by 12.4 billion yen from the same period of the previous fiscal year due primarily to a shift in product mix, increases in material prices and upfront investment for growth drivers.
Information and Communication Systems
Total sales: | 107.0 | billion yen | (6% increase from the same period last year which recorded 101.1 billion yen) |
Operating income: | 4.3 | billion yen | (0.6 billion yen decrease from the same period last year which recorded 5.0 billion yen) |
The telecommunications systems business saw decreases in both orders and sales compared to the same period of the previous fiscal year due primarily to decreased demand in communications infrastructure equipment.
The information systems and service business saw increases in both orders and sales compared to the same period of the previous fiscal year, mainly due to an increase in the system integrations business.
The electronic systems business saw an increase in both orders and sales compared to the same period of the previous fiscal year mainly due to an increase in large-scale projects in the defense systems business.
As a result, total sales for this segment increased by 6% compared to the same period of the previous fiscal year. Operating income decreased by 0.6 billion yen from the same period of the previous fiscal year due primarily to a shift in project portfolios.
Electronic Devices
Total sales: | 50.4 | billion yen | (2% decrease from the same period last year which recorded 51.4 billion yen) |
Operating income (loss): | (0.2 | billion yen) | (4.3 billion yen decline from the same period last year which recorded 4.1 billion yen) |
The electronic devices business saw an increase in orders from the same period of the previous fiscal year mainly due to an increase in demand for power modules used in automotive and railcar applications, while sales decreased by 2% from the same period of the previous fiscal year due primarily to a decrease in demand for optical communication devices.
Operating income declined by 4.3 billion yen compared to the same period of the previous fiscal year due primarily to a shift in product mix.
Home Appliances
Total sales: | 276.7 | billion yen | (3% increase from the same period last year which recorded 269.3 billion yen) |
Operating income: | 13.6 | billion yen | (1.6 billion yen decrease from the same period last year which recorded 15.2 billion yen) |
The home appliances business saw an increase in sales of 3% from the same period of the previous fiscal year due to an increase in sales of air conditioners for North America, Europe and Japan.
Operating income decreased by 1.6 billion yen compared to the same period of the previous fiscal year due primarily to increases in material prices and sales expenses.
Others
Total sales: | 172.1 | billion yen | (4% increase from the same period last year which recorded 165.8 billion yen) |
Operating income: | 9.1 | billion yen | (1.5 billion yen increase from the same period last year which recorded 7.6 billion yen) |
Sales increased by 4% compared to the same period of the previous fiscal year due primarily to an increase in sales at affiliated companies involved in materials procurement.
Operating income increased by 1.5 billion yen compared to the same period of the previous fiscal year due primarily to an increase in sales.
Financial Standing
An analysis on the status of assets, liabilities and equity on a consolidated basis
Total assets as of the end of this fiscal quarter decreased from the end of the previous fiscal year by 42.7 billion yen to 4,262.8 billion yen. The change in balance of total assets is mainly attributable to increases in inventories by 81.2 billion yen as a result of work-in-process as recorded in commensurate with progress in job orders under pertinent contracts, while cash and cash equivalents decreased by 18.5 billion yen, and trade receivables and contract assets decreased by 116.2 billion yen primarily as a result of credit collection.
Total liabilities decreased from the end of the previous fiscal year by 95.6 billion yen to 1,812.7 billion yen. The outstanding balances of debt decreased by 9.0 billion yen from the end of the previous fiscal year to 302.9 billion yen, resulting in a decline in the ratio of interest bearing debt to total assets to 7.1%, representing a 0.1 point decrease compared to the end of the previous fiscal year. Meanwhile, trade payables decreased by 46.2 billion yen, and other current liabilities decreased by 44.9 billion yen.
Mitsubishi Electric Corporation stockholders' equity increased by 47.1 billion yen compared to the end of the previous fiscal year to 2,341.2 billion yen. The stockholders' equity ratio was recorded at 54.9%, representing a 1.6 point increase compared to the end of the previous fiscal year. These changes referred to above primarily result from recording a net income attributable to Mitsubishi Electric Corporation stockholders of 102.3 billion yen, despite a decrease of 55.8 billion yen due to dividend payments.
An analysis on the status of cash flow on a consolidated basis
Cash flows from operating activities for the first half of fiscal 2019 increased by 18.0 billion yen compared to the same period of the previous fiscal year to 144.3 billion yen (cash in), mainly due to a decrease in payments of trade payables. Cash flows from investing activities increased by 29.2 billion yen compared to the same period of the previous fiscal year to 98.7 billion yen (cash out), due primarily to a decrease in proceeds from sale of short-term investments and investment securities. As a result, free cash flow was 45.5 billion yen (cash in). Cash flows from financing activities were 68.8 billion yen (cash out) mainly due to dividend payments.
Forecast for Fiscal 2019 (year ending March 31, 2019)
Considering the financial results for the second quarter of fiscal 2019, the latest situation of orders received and other factors, consolidated net sales for fiscal 2019 is expected to exceed the company's previous forecast owing primarily to the weaker yen against the U.S. dollar, while income is expected to fall below the previous forecast in the Industrial Automation Systems and Electronic Devices segments. As a result, the company's consolidated earnings forecast for fiscal 2019, ending March 31, 2019, has been revised from the announcement on July 30, 2018 as stated below.
Consolidated Earnings Forecast for Fiscal 2019
Consolidated | Previous forecast (announced July 30) | Current forecast | |
Net sales: | 4,500.0 billion yen | 4,510.0 billion yen | (1% increase from fiscal 2018) |
Operating income: | 315.0 billion yen | 305.0 billion yen | (7% decrease from fiscal 2018) |
Income before income taxes: | 345.0 billion yen | 335.0 billion yen | (5% decrease from fiscal 2018) |
Net income attributable to Mitsubishi Electric Corp. stockholders: | 245.0 billion yen | 240.0 billion yen | (6% decrease from fiscal 2018) |
Exchange rates in and after the third quarter of fiscal 2019 is 105 yen to the U.S. dollar, which is 5 yen weaker from the company's previous announcement, 125 yen to the euro, unchanged from the previous announcement, and 16.0 yen to the Chinese yuan, which is 0.5 yen stronger.
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
1. Consolidated Half-year Results
(In billions of yen except where noted)
| FY '18 1st half (A)(Apr. 1, 2017 - Sept. 30, 2017) | FY '19 1st half (B)(Apr. 1, 2018 - Sept. 30, 2018) |
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B - A | B/A (%) | |||
Net sales | 2,111.7 | 2,170.1 | 58.3 | 103 |
Operating income | 152.8 | 125.9 | (26.8) | 82 |
Income before income taxes | 166.1 | 141.2 | (24.8) | 85 |
Net income attributable to Mitsubishi Electric Corp. stockholders | 120.9 | 102.3 | (18.6) | 85 |
Basic net income per share attributable to Mitsubishi Electric Corp. stockholders | 56.37 yen | 47.70 yen | (8.67 yen) | 85 |
2. Consolidated Second-quarter Results
(In billions of yen except where noted)
| FY '18 Q2 (A)(Jul. 1, 2017 -Sept. 30, 2017) | FY '19 Q2 (B)(Jul. 1, 2018 - Sept. 30, 2018) |
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B - A | B/A (%) | |||
Net sales | 1,077.8 | 1,119.1 | 41.2 | 104 |
Operating income | 77.3 | 64.3 | (12.9) | 83 |
Income before income taxes | 85.7 | 72.5 | (13.1) | 85 |
Net income attributable to Mitsubishi Electric Corp. stockholders | 63.9 | 54.7 | (9.2) | 86 |
Basic net income per share attributable to Mitsubishi Electric Corp. stockholders | 29.82 yen | 25.52 yen | (4.30 yen) | 86 |
Notes:
1) Consolidated financial statements are made in accordance with International Financial Reporting Standards (IFRS).
2) The Company has 209 consolidated subsidiaries.
Condensed Quarterly Consolidated Financial Statements
Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated Statements of Comprehensive Income (First Half, Fiscal 2019)
(Condensed Quarterly Consolidated Statements of Profit or Loss)
(In millions of yen)
| FY '18 1st half (Apr. 1, 2017 - Sept. 30, 2017) | FY '19 1st half (Apr. 1, 2018 - Sept. 30, 2018) |
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(A) | % of total | (B) | % of total | B - A | B/A (%) | |
Net sales | 2,111,767 | 100.0 | 2,170,106 | 100.0 | 58,339 | 103 |
Cost of sales | 1,462,559 | 69.3 | 1,530,169 | 70.5 | 67,610 | 105 |
Selling, general and administrative expenses | 496,013 | 23.5 | 514,365 | 23.7 | 18,352 | 104 |
Other profit (loss) | (370) | (0.0) | 368 | 0.0 | 738 | - |
Operating income | 152,825 | 7.2 | 125,940 | 5.8 | (26,885) | 82 |
Financial income | 4,885 | 0.2 | 6,629 | 0.3 | 1,744 | 136 |
Financial expenses | 1,525 | 0.0 | 1,285 | 0.1 | (240) | 84 |
Share of profit of investments accounted for using theequity method | 9,987 | 0.5 | 10,007 | 0.5 | 20 | 100 |
Income before income taxes | 166,172 | 7.9 | 141,291 | 6.5 | (24,881) | 85 |
Income tax expenses | 39,386 | 1.9 | 33,259 | 1.5 | (6,127) | 84 |
Net income | 126,786 | 6.0 | 108,032 | 5.0 | (18,754) | 85 |
Net income attributable to: |
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Mitsubishi Electric Corp.stockholders | 120,972 | 5.7 | 102,328 | 4.7 | (18,644) | 85 |
Non-controlling interests | 5,814 | 0.3 | 5,704 | 0.3 | (110) | 98 |
(Condensed Quarterly Consolidated Statements of Comprehensive Income)
(In millions of yen)
| FY '18 1st half (A) (Apr. 1, 2017 -Sept. 30, 2017) | FY '19 1st half (B) (Apr. 1, 2018 - Sept. 30, 2018) | B - A |
Net income | 126,786 | 108,032 | (18,754) |
(Other comprehensive income (loss),net of tax) |
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Items that will not be reclassified tonet income |
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Financial assets measured at fair valuethrough other comprehensive income | 9,721 | (8,429) | (18,150) |
Share of other comprehensive income of investments accounted for using the equity method | 597 | 238 | (359) |
Subtotal | 10,318 | (8,191) | (18,509) |
Items that may be reclassified to net income |
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Exchange differences on translating foreign operations | 31,559 | 9,386 | (22,173) |
Net changes in the fair value of cash flow hedges | 5 | 92 | 87 |
Share of other comprehensive income of investments accounted for using the equity method | (185) | (1,763) | (1,578) |
Subtotal | 31,379 | 7,715 | (23,664) |
Total other comprehensive income (loss) | 41,697 | (476) | (42,173) |
Comprehensive income | 168,483 | 107,556 | (60,927) |
Comprehensive income attributable to: |
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Mitsubishi Electric Corp. stockholders | 160,695 | 100,934 | (59,761) |
Non-controlling interests | 7,788 | 6,622 | (1,166) |
Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated Statements of Comprehensive Income (Second Quarter, Fiscal 2019)
(Condensed Quarterly Consolidated Statements of Profit or Loss)
(In millions of yen)
| FY '18 Q2 (Jul. 1, 2017 - Sept. 30, 2017) | FY '19 Q2 (Jul. 1, 2018 - Sept. 30, 2018) |
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(A) | % of total | (B) | % of total | B - A | B/A (%) | |
Net sales | 1,077,831 | 100.0 | 1,119,124 | 100.0 | 41,293 | 104 |
Cost of sales | 745,594 | 69.2 | 789,122 | 70.5 | 43,528 | 106 |
Selling, general and administrative expenses | 254,403 | 23.6 | 264,159 | 23.6 | 9,756 | 104 |
Other profit (loss) | (502) | (0.0) | (1,492) | (0.1) | (990) | - |
Operating income | 77,332 | 7.2 | 64,351 | 5.8 | (12,981) | 83 |
Financial income | 1,467 | 0.2 | 1,871 | 0.2 | 404 | 128 |
Financial expenses | 762 | 0.1 | 675 | 0.1 | (87) | 89 |
Share of profit of investments accounted for using theequity method | 7,689 | 0.7 | 7,014 | 0.6 | (675) | 91 |
Income before income taxes | 85,726 | 8.0 | 72,561 | 6.5 | (13,165) | 85 |
Income tax expenses | 18,150 | 1.7 | 14,536 | 1.3 | (3,614) | 80 |
Net income | 67,576 | 6.3 | 58,025 | 5.2 | (9,551) | 86 |
Net income attributable to: |
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Mitsubishi Electric Corp.stockholders | 63,987 | 5.9 | 54,750 | 4.9 | (9,237) | 86 |
Non-controlling interests | 3,589 | 0.4 | 3,275 | 0.3 | (314) | 91 |
(Condensed Quarterly Consolidated Statements of Comprehensive Income)
(In millions of yen)
| FY '18 Q2 (A) (Jul. 1, 2017 - Sept. 30, 2017) | FY '19 Q2 (B) (Jul. 1, 2018 - Sept. 30, 2018) | B - A |
Net income | 67,576 | 58,025 | (9,551) |
(Other comprehensive income (loss),net of tax) |
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Items that will not be reclassified tonet income |
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Financial assets measured at fair valuethrough other comprehensive income | 18,855 | (15,817) | (34,672) |
Share of other comprehensive income of investments accounted for using the equity method | 310 | 107 | (203) |
Subtotal | 19,165 | (15,710) | (34,875) |
Items that may be reclassified to net income |
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Exchange differences on translating foreign operations | 19,019 | 18,538 | (481) |
Net changes in the fair value of cash flow hedges | 2 | 110 | 108 |
Share of other comprehensive income of investments accounted for using the equity method | 672 | 81 | (591) |
Subtotal | 19,693 | 18,729 | (964) |
Total other comprehensive income | 38,858 | 3,019 | (35,839) |
Comprehensive income | 106,434 | 61,044 | (45,390) |
Comprehensive income attributable to: |
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Mitsubishi Electric Corp. stockholders | 101,168 | 56,204 | (44,964) |
Non-controlling interests | 5,266 | 4,840 | (426) |
Condensed Quarterly Consolidated Statements of Financial Position
(In millions of yen)
| FY '18 (A) (ended Mar. 31, 2018) | FY ' 19 1st half (B) (ended Sept. 30, 2018) | B - A |
(Assets) |
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Current assets | 2,582,735 | 2,528,623 | (54,112) |
Cash and cash equivalents | 599,199 | 580,690 | (18,509) |
Trade receivables and Contract Assets | 1,191,529 | 1,075,231 | (116,298) |
Inventories | 646,262 | 727,462 | 81,200 |
Other current assets | 145,745 | 145,240 | (505) |
Non-current assets | 1,722,845 | 1,734,194 | 11,349 |
Investments accounted for using the equity method | 194,308 | 191,008 | (3,300) |
Other financial assets | 363,171 | 348,309 | (14,862) |
Net property, plant and equipment | 724,257 | 746,544 | 22,287 |
Other non-current assets | 441,109 | 448,333 | 7,224 |
Total assets | 4,305,580 | 4,262,817 | (42,763) |
(Liabilities) |
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Current liabilities | 1,488,249 | 1,418,025 | (70,224) |
Bonds and borrowings | 122,895 | 143,825 | 20,930 |
Trade payables | 579,566 | 533,365 | (46,201) |
Other current liabilities | 785,788 | 740,835 | (44,953) |
Non-current liabilities | 420,112 | 394,728 | (25,384) |
Bonds and borrowings | 189,055 | 159,083 | (29,972) |
Net defined benefit liabilities | 171,520 | 176,866 | 5,346 |
Other non-current liabilities | 59,537 | 58,779 | (758) |
Total liabilities | 1,908,361 | 1,812,753 | (95,608) |
(Equity) |
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Mitsubishi Electric Corp. stockholders' equity | 2,294,174 | 2,341,291 | 47,117 |
Common stock | 175,820 | 175,820 | - |
Capital surplus | 199,442 | 202,495 | 3,053 |
Retained earnings | 1,811,348 | 1,857,619 | 46,271 |
Accumulated other comprehensive income (loss) | 109,492 | 108,339 | (1,153) |
Treasury stock at cost | (1,928) | (2,982) | (1,054) |
Non-controlling interests | 103,045 | 108,773 | 5,728 |
Total equity | 2,397,219 | 2,450,064 | 52,845 |
Total liabilities and equity | 4,305,580 | 4,262,817 | (42,763) |
Balance of Debt | 311,950 | 302,908 | (9,042) |
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Accumulated other comprehensive income (loss): |
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Exchange differences on translating foreign operations | 17,549 | 24,313 | 6,764 |
Remeasurements of defined benefit pension plans | - | - | - |
Financial assets measured at fair value through other comprehensive income | 91,952 | 83,968 | (7,984) |
Net changes in the fair value of cash flow hedges | (9) | 58 | 67 |
Condensed Quarterly Consolidated Statements of Changes in Equity
(In millions of yen)
| Mitsubishi Electric Corp. stockholders' equity | Non-controlling interests | Total equity | |||||
| Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock at cost | Total | ||
Balance at April 1, 2017 | 175,820 | 198,745 | 1,593,660 | 101,166 | (1,228) | 2,068,163 | 98,800 | 2,166,963 |
Comprehensive income |
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Net income |
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| 120,972 |
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| 120,972 | 5,814 | 126,786 |
Other comprehensive income (loss) |
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| 39,723 |
| 39,723 | 1,974 | 41,697 |
Comprehensive income | - | - | 120,972 | 39,723 | - | 160,695 | 7,788 | 168,483 |
Transfer to retained earnings |
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| 7,638 | (7,638) |
| - |
| - |
Dividends paid |
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| (38,642) |
|
| (38,642) | (5,326) | (43,968) |
Purchase of treasury stock |
|
|
|
| (698) | (698) |
| (698) |
Reissuance of treasury stock |
| 0 |
|
| 0 | 0 |
| 0 |
Transactions with non-controlling interests, etc. |
| 4 |
|
|
| 4 | (65) | (61) |
Balance at Sep. 30, 2017 | 175,820 | 198,749 | 1,683,628 | 133,251 | (1,926) | 2,189,522 | 101,197 | 2,290,719 |
|
|
|
|
|
|
|
|
|
| Mitsubishi Electric Corp. stockholders' equity | Non-controlling interests | Total equity | |||||
| Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock at cost | Total | ||
Balance at April 1, 2018 | 175,820 | 199,442 | 1,811,348 | 109,492 | (1,928) | 2,294,174 | 103,045 | 2,397,219 |
Comprehensive income |
|
|
|
|
|
|
|
|
Net income |
|
| 102,328 |
|
| 102,328 | 5,704 | 108,032 |
Other comprehensive income (loss) |
|
|
| (1,394) |
| (1,394) | 918 | (476) |
Comprehensive income | - | - | 102,328 | (1,394) | - | 100,934 | 6,622 | 107,556 |
Transfer to retained earnings |
|
| (241) | 241 |
| - |
| - |
Dividends paid |
|
| (55,816) |
|
| (55,816) | (4,571) | (60,387) |
Purchase of treasury stock |
|
|
|
| (1,054) | (1,054) |
| (1,054) |
Reissuance of treasury stock |
| 0 |
|
| 0 | 0 |
| 0 |
Transactions with non-controlling interests, etc. |
| 3,053 |
|
|
| 3,053 | 3,677 | 6,730 |
Balance at Sep. 30, 2018 | 175,820 | 202,495 | 1,857,619 | 108,339 | (2,982) | 2,341,291 | 108,773 | 2,450,064 |
Condensed Quarterly Consolidated Statements of Cash Flows
(In millions of yen)
|
| FY '18 1st half (Apr. 1, 2017 - Sept. 30, 2017) (A) | FY '19 1st half (Apr. 1, 2018 - Sept. 30, 2018) (B) | B - A |
I | Cash flows from operating activities |
|
|
|
1 | Net income | 126,786 | 108,032 | (18,754) |
2 | Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
| (1) Depreciation, amortization and other | 81,508 | 81,407 | (101) |
| (2) Decrease in trade receivables and contract assets | 122,083 | 126,701 | 4,618 |
| (3) Decrease (increase) in inventories | (54,678) | (70,970) | (16,292) |
| (4) Increase (decrease) in trade payables | (100,984) | (49,041) | 51,943 |
| (5) Other, net | (48,452) | (51,828) | (3,376) |
| Cash flows from operating activities | 126,263 | 144,301 | 18,038 |
|
|
|
|
|
II | Cash flows from investing activities |
|
|
|
1 | Purchase of property, plant and equipment | (88,562) | (88,211) | 351 |
2 | Proceeds from sale of property, plant and equipment | 1,351 | 1,502 | 151 |
3 | Purchase of short-term investments and investment securities (net of cash acquired) | (3,915) | (7,874) | (3,959) |
4 | Proceeds from sale of short-term investments and investment securities | 28,302 | 3,484 | (24,818) |
5 | Other, net | (6,634) | (7,626) | (992) |
| Cash flows from investing activities | (69,458) | (98,725) | (29,267) |
|
|
|
|
|
I + II | Free cash flow | 56,805 | 45,576 | (11,229) |
|
|
|
|
|
III | Cash flows from financing activities |
|
|
|
1 | Proceeds from long-term debt and repayment of long-term debt | (14,374) | (14,551) | (177) |
2 | Increase (decrease) in bank loans, net | (20,537) | 872 | 21,409 |
3 | Dividends paid | (38,642) | (55,816) | (17,174) |
4 | Purchase of treasury stock | (698) | (1,054) | (356) |
5 | Reissuance of treasury stock | 0 | 0 | 0 |
6 | Other, net | (6,733) | 1,676 | 8,409 |
| Cash flows from financing activities | (80,984) | (68,873) | 12,111 |
|
|
|
|
|
IV | Effect of exchange rate changes on cash and cash equivalents | 8,522 | 4,788 | (3,734) |
V | Net increase (decrease) in cash and cash equivalents | (15,657) | (18,509) | (2,852) |
VI | Cash and cash equivalents at beginning of period | 662,469 | 599,199 | (63,270) |
VII | Cash and cash equivalents at end of period | 646,812 | 580,690 | (66,122) |
Consolidated Segment Information (First Half, Fiscal 2019)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment | FY '18 1st half (Apr. 1, 2017 - Sept. 30, 2017) | FY '19 1st half (Apr. 1, 2018 - Sept. 30, 2018) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales(C) | Operating income (D) | ||||
Energy and Electric Systems | 557,134 | 10,660 | 568,642 | 15,564 | 11,508 | 4,904 | 102 |
Industrial Automation Systems | 703,716 | 96,315 | 730,350 | 77,979 | 26,634 | (18,336) | 104 |
Information and Communication Systems | 191,216 | 3,250 | 186,867 | 2,502 | (4,349) | (748) | 98 |
Electronic Devices | 99,532 | 7,234 | 101,896 | 1,269 | 2,364 | (5,965) | 102 |
Home Appliances | 539,250 | 39,446 | 557,120 | 33,665 | 17,870 | (5,781) | 103 |
Others | 310,781 | 9,660 | 327,831 | 10,343 | 17,050 | 683 | 105 |
Subtotal | 2,401,629 | 166,565 | 2,472,706 | 141,322 | 71,077 | (25,243) | 103 |
Eliminations and other | (289,862) | (13,740) | (302,600) | (15,382) | (12,738) | (1,642) | - |
Consolidated Total | 2,111,767 | 152,825 | 2,170,106 | 125,940 | 58,339 | (26,885) | 103 |
*Notes: Inter-segment sales are included in the above chart.
2. Sales by Location of Customers
(In millions of yen)
Location of Customers | FY '18 1st half (Apr. 1, 2017 - Sept. 30, 2017) | FY '19 1st half (Apr. 1, 2018 - Sept. 30, 2018) | B - A | B/A (%) | |||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | ||||||
| Japan | 1,110,504 | 52.6 | 1,168,802 | 53.9 | 58,298 | 105 | ||
|
| North America | 209,811 | 9.9 | 209,854 | 9.7 | 43 | 100 | |
|
| Asia (excluding Japan) | 548,040 | 26.0 | 528,321 | 24.3 | (19,719) | 96 | |
|
|
| China | 273,835 | 13.0 | 265,287 | 12.2 | (8,548) | 97 |
|
| Europe | 214,323 | 10.1 | 233,125 | 10.7 | 18,802 | 109 | |
|
| Others | 29,089 | 1.4 | 30,004 | 1.4 | 915 | 103 | |
| Total overseas sales | 1,001,263 | 47.4 | 1,001,304 | 46.1 | 41 | 100 | ||
Consolidated total | 2,111,767 | 100.0 | 2,170,106 | 100.0 | 58,339 | 103 | |||
Consolidated Segment Information (Second Quarter, Fiscal 2019)
1. Sales and Operating Income by Business Segment
(In millions of yen)
Business Segment | FY '18 Q2 (Jul. 1, 2017 - Sept. 30, 2017) | FY '19 Q2 (Jul. 1, 2018 - Sept. 30, 2018) | C - A | D - B | C/A (%) | ||
Sales (A) | Operating income (B) | Sales(C) | Operating income (loss) (D) | ||||
Energy and Electric Systems | 288,590 | 3,948 | 301,245 | 9,586 | 12,655 | 5,638 | 104 |
Industrial Automation Systems | 352,899 | 45,569 | 369,351 | 33,106 | 16,452 | (12,463) | 105 |
Information and Communication Systems | 101,170 | 5,033 | 107,085 | 4,342 | 5,915 | (691) | 106 |
Electronic Devices | 51,410 | 4,178 | 50,434 | (217) | (976) | (4,395) | 98 |
Home Appliances | 269,358 | 15,258 | 276,786 | 13,609 | 7,428 | (1,649) | 103 |
Others | 165,877 | 7,647 | 172,174 | 9,183 | 6,297 | 1,536 | 104 |
Subtotal | 1,229,304 | 81,633 | 1,277,075 | 69,609 | 47,771 | (12,024) | 104 |
Eliminations and other | (151,473) | (4,301) | (157,951) | (5,258) | (6,478) | (957) | - |
Consolidated Total | 1,077,831 | 77,332 | 1,119,124 | 64,351 | 41,293 | (12,981) | 104 |
*Notes: Inter-segment sales are included in the above chart.
2. Sales by Location of Customers
(In millions of yen)
Location of Customers | FY '18 Q2 (Jul. 1, 2017 - Sept. 30, 2017) | FY '19 Q2 (Jul. 1, 2018 - Sept. 30, 2018) | B - A | B/A (%) | |||||
Sales (A) | % of total net sales | Sales (B) | % of total net sales | ||||||
| Japan | 583,032 | 54.1 | 627,368 | 56.1 | 44,336 | 108 | ||
|
| North America | 103,330 | 9.6 | 106,756 | 9.5 | 3,426 | 103 | |
|
| Asia (excluding Japan) | 273,614 | 25.4 | 258,046 | 23.0 | (15,568) | 94 | |
|
|
| China | 133,445 | 12.4 | 125,104 | 11.2 | (8,341) | 94 |
|
| Europe | 102,259 | 9.5 | 111,488 | 10.0 | 9,229 | 109 | |
|
| Others | 15,596 | 1.4 | 15,466 | 1.4 | (130) | 99 | |
| Total overseas sales | 494,799 | 45.9 | 491,756 | 43.9 | (3,043) | 99 | ||
Consolidated total | 1,077,831 | 100.0 | 1,119,124 | 100.0 | 41,293 | 104 | |||
Notes to the Condensed Consolidated Financial Statements
(Notes regarding the going concern assumption)
Not applicable
(Notes if there is any significant change in Mitsubishi Electric Corp. stockholders' equity)
Not applicable
Disclosures of Transition to IFRS
The Mitsubishi Electric Group has applied IFRS beginning with the consolidated financial statements for the first quarter of the current fiscal year. The most recent consolidated financial statements prepared in accordance with US GAAP are for the one-year period ended on March 31, 2018. The date of transition to IFRS was April 1, 2017.
(1) Exemptions and exceptions in IFRS 1
IFRS 1 requires entities adopting IFRS for the first time to retrospectively apply IFRS in principle; however, with regard to certain items, it allows exemption from, or prohibits, retrospective application of IFRS.
The Company and its consolidated subsidiaries use the following exemptions on retrospective application permitted by IFRS 1:
- Business combinations
The Company and its consolidated subsidiaries elected not to apply IFRS 3 Business Combinations retrospectively to past business combinations that occurred on or before December 22, 2015. Consequently, the amount of goodwill that arose from business combinations occurred on or before December 22, 2015 is recorded at the carrying value in accordance with US GAAP. This goodwill was tested for impairment at the transition date irrespective of whether there was any indication of impairment.
- Exchange differences on translating foreign operations
The Company and its consolidated subsidiaries elected to deem the cumulative translation differences for foreign operations at the transition date to be zero. Consequently, the cumulative translation differences for foreign operations at the transition date were transferred from accumulated other comprehensive income (loss) to retained earnings.
- Designation of financial instruments recognized before the date of transition to IFRS
The Company and its consolidated subsidiaries elected to determine the classification of financial instruments on the basis of the facts and circumstances that exist at the date of transition to IFRS.
(2) Reconciliations
Reconciliations for which disclosures are required on first time adoption of IFRS are as follows:
Items that do not affect retained earnings and comprehensive income are presented in "Reclassification," and items that affect retained earnings and comprehensive income are presented in "Recognition and measurement differences."
Reconciliation of Equity as at the Date of Transition to IFRS (April 1, 2017)
(Consolidated Statements of Financial Position) (In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
(Assets) |
|
|
|
| (Assets) |
Current assets | 2,500,685 | 3,062 | 4,810 | 2,508,557 | Current assets |
Cash and cash equivalents | 662,469 | - | - | 662,469 | Cash and cash equivalents |
Trade receivables | 1,037,201 | 15,261 | 103,004 | 1,155,466 | Trade receivables and contract assets |
Inventories | 643,040 | - | (83,138) | 559,902 | Inventories |
Prepaid expenses and other current assets | 157,975 | (12,199) | (15,056) | 130,720 | Other current assets |
| - | (3,062) | 60,950 | 1,729,473 | Non-current assets |
Long-term trade receivables | 2,815 | (2,815) | - | - |
|
Investments | 618,935 | (618,935) | - | - |
|
| - | 181,724 | 5,634 | 187,358 | Investments accounted for using the equity method |
| - | 362,869 | 27,710 | 390,579 | Other financial assets |
Net property, plant and equipment | 732,611 | - | (33,133) | 699,478 | Net property, plant and equipment |
Other assets | 317,224 | 74,095 | 60,739 | 452,058 | Other non-current assets |
Total assets | 4,172,270 | - | 65,760 | 4,238,030 | Total assets |
(In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
(Liabilities) |
|
|
|
| (Liabilities) |
Current liabilities | 1,525,761 | 7,456 | 33,082 | 1,566,299 | Current liabilities |
Bank loans and current portion of long-term debt | 124,368 | - | 21,987 | 146,355 | Bonds and borrowings |
Trade payables | 780,202 | (145,119) | - | 635,083 | Trade payables |
Other current liabilities | 621,191 | 152,575 | 11,095 | 784,861 | Other current liabilities |
| - | (7,456) | 6,423 | 504,768 | Non-current liabilities |
Long-term debt | 227,756 | - | - | 227,756 | Bonds and borrowings |
Retirement and severance benefits | 194,990 | - | 8,044 | 203,034 | Net defined benefit liabilities |
Other fixed liabilities | 83,055 | (7,456) | (1,621) | 73,978 | Other non-current liabilities |
Total liabilities | 2,031,562 | - | 39,505 | 2,071,067 | Total liabilities |
(Equity) |
|
|
|
| (Equity) |
Mitsubishi Electric Corp. shareholders' equity | 2,039,627 | - | 28,536 | 2,068,163 | Mitsubishi Electric Corp. stockholders' equity |
Common stock | 175,820 | - | - | 175,820 | Common stock |
Capital surplus | 212,530 | - | (13,785) | 198,745 | Capital surplus |
Retained earnings | 1,654,557 | - | (60,897) | 1,593,660 | Retained earnings |
Accumulated other comprehensive income (loss) | (2,052) | - | 103,218 | 101,166 | Accumulated other comprehensive income (loss) |
Treasury stock at cost | (1,228) | - | - | (1,228) | Treasury stock at cost |
Noncontrolling interests | 101,081 | - | (2,281) | 98,800 | Non-controlling interests |
Total equity | 2,140,708 | - | 26,255 | 2,166,963 | Total equity |
Total liabilities and equity | 4,172,270 | - | 65,760 | 4,238,030 | Total liabilities and equity |
Balance of Debt | 352,124 | - | 21,987 | 374,111 | Balance of Debt |
|
|
|
|
|
|
Accumulated other comprehensive income (loss): |
|
|
|
| Accumulated other comprehensive income (loss): |
Foreign currency translation adjustments | 18,535 | - | (18,535) | - | Exchange differences on translating foreign operations |
Pension liability adjustments | (156,993) | - | 156,993 | - | Remeasurements of defined benefit pension plans |
Unrealized gains on securities | 136,352 | - | (35,223) | 101,129 | Financial assets measured at fair value through other comprehensive income |
Unrealized gains (losses) on derivative instruments | 54 | - | (17) | 37 | Net changes in the fair value of cash flow hedges |
Reconciliation of Equity as at the End of the Second Quarter of the Previous Fiscal Year(September 30, 2017)
(Condensed Quarterly Consolidated Statements of Financial Position) (In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
(Assets) |
|
|
|
| (Assets) |
Current assets | 2,486,482 | 2,838 | (14,798) | 2,474,522 | Current assets |
Cash and cash equivalents | 646,812 | - | - | 646,812 | Cash and cash equivalents |
Trade receivables | 915,510 | 16,874 | 113,789 | 1,046,173 | Trade receivables and contract assets |
Inventories | 742,105 | - | (114,477) | 627,628 | Inventories |
Prepaid expenses and other current assets | 182,055 | (14,036) | (14,110) | 153,909 | Other current assets |
| - | (2,838) | 64,217 | 1,729,406 | Non-current assets |
Long-term trade receivables | 2,920 | (2,920) | - | - |
|
Investments | 614,786 | (614,786) | - | - |
|
| - | 175,075 | 5,269 | 180,344 | Investments accounted for using the equity method |
| - | 350,237 | 27,760 | 377,997 | Other financial assets |
Net property, plant and equipment | 755,261 | - | (32,420) | 722,841 | Net property, plant and equipment |
Other assets | 295,060 | 89,556 | 63,608 | 448,224 | Other non-current assets |
Total assets | 4,154,509 | - | 49,419 | 4,203,928 | Total assets |
(In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
(Liabilities) |
|
|
|
| (Liabilities) |
Current liabilities | 1,405,615 | 7,599 | 8,065 | 1,421,279 | Current liabilities |
Bank loans and current portion of long-term debt | 121,647 | - | 5,018 | 126,665 | Bonds and borrowings |
Trade payables | 661,741 | (124,109) | - | 537,632 | Trade payables |
Other current liabilities | 622,227 | 131,708 | 3,047 | 756,982 | Other current liabilities |
| - | (7,599) | 23,987 | 491,930 | Non-current liabilities |
Long-term debt | 216,945 | - | - | 216,945 | Bonds and borrowings |
Retirement and severance benefits | 182,432 | - | 24,992 | 207,424 | Net defined benefit liabilities |
Other fixed liabilities | 76,165 | (7,599) | (1,005) | 67,561 | Other non-current liabilities |
Total liabilities | 1,881,157 | - | 32,052 | 1,913,209 | Total liabilities |
(Equity) |
|
|
|
| (Equity) |
Mitsubishi Electric Corp. shareholders' equity | 2,170,547 | - | 18,975 | 2,189,522 | Mitsubishi Electric Corp. stockholders' equity |
Common stock | 175,820 | - | - | 175,820 | Common stock |
Capital surplus | 212,534 | - | (13,785) | 198,749 | Capital surplus |
Retained earnings | 1,747,050 | - | (63,422) | 1,683,628 | Retained earnings |
Accumulated other comprehensive income (loss) | 37,069 | - | 96,182 | 133,251 | Accumulated other comprehensive income (loss) |
Treasury stock at cost | (1,926) | - | - | (1,926) | Treasury stock at cost |
Noncontrolling interests | 102,805 | - | (1,608) | 101,197 | Non-controlling interests |
Total equity | 2,273,352 | - | 17,367 | 2,290,719 | Total equity |
Total liabilities and equity | 4,154,509 | - | 49,419 | 4,203,928 | Total liabilities and equity |
Balance of Debt | 338,592 | - | 5,018 | 343,610 | Balance of Debt |
|
|
|
|
|
|
Accumulated other comprehensive income (loss): |
|
|
|
| Accumulated other comprehensive income (loss): |
Foreign currency translation adjustments | 43,223 | - | (13,747) | 29,476 | Exchange differences on translating foreign operations |
Pension liability adjustments | (139,120) | - | 139,120 | - | Remeasurements of defined benefit pension plans |
Unrealized gains on securities | 132,981 | - | (29,247) | 103,734 | Financial assets measured at fair value through other comprehensive income |
Unrealized gains (losses) on derivative instruments | (15) | - | 56 | 41 | Net changes in the fair value of cash flow hedges |
Reconciliation of Equity as at the End of the Previous Fiscal Year (March 31, 2018)
(Consolidated Statements of Financial Position) (In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
(Assets) |
|
|
|
| (Assets) |
Current assets | 2,606,493 | (1,434) | (22,324) | 2,582,735 | Current assets |
Cash and cash equivalents | 599,199 | - | - | 599,199 | Cash and cash equivalents |
Trade receivables | 1,087,593 | 14,225 | 89,711 | 1,191,529 | Trade receivables and contract assets |
Inventories | 741,782 | - | (95,520) | 646,262 | Inventories |
Prepaid expenses and other current assets | 177,919 | (15,659) | (16,515) | 145,745 | Other current assets |
| - | 1,434 | 63,345 | 1,722,845 | Non-current assets |
Long-term trade receivables | 1,965 | (1,965) | - | - |
|
Investments | 614,295 | (614,295) | - | - |
|
| - | 187,828 | 6,480 | 194,308 | Investments accounted for using the equity method |
| - | 335,474 | 27,697 | 363,171 | Other financial assets |
Net property, plant and equipment | 740,448 | - | (16,191) | 724,257 | Net property, plant and equipment |
Other assets | 301,358 | 94,392 | 45,359 | 441,109 | Other non-current assets |
Total assets | 4,264,559 | - | 41,021 | 4,305,580 | Total assets |
(In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
(Liabilities) |
|
|
|
| (Liabilities) |
Current liabilities | 1,471,367 | 8,586 | 8,296 | 1,488,249 | Current liabilities |
Bank loans and current portion of long-term debt | 122,430 | - | 465 | 122,895 | Bonds and borrowings |
Trade payables | 719,404 | (139,838) | - | 579,566 | Trade payables |
Other current liabilities | 629,533 | 148,424 | 7,831 | 785,788 | Other current liabilities |
| - | (8,586) | (349) | 420,112 | Non-current liabilities |
Long-term debt | 189,055 | - | - | 189,055 | Bonds and borrowings |
Retirement and severance benefits | 171,017 | - | 503 | 171,520 | Net defined benefit liabilities |
Other fixed liabilities | 68,975 | (8,586) | (852) | 59,537 | Other non-current liabilities |
Total liabilities | 1,900,414 | - | 7,947 | 1,908,361 | Total liabilities |
(Equity) |
|
|
|
| (Equity) |
Mitsubishi Electric Corp. shareholders' equity | 2,259,355 | - | 34,819 | 2,294,174 | Mitsubishi Electric Corp. stockholders' equity |
Common stock | 175,820 | - | - | 175,820 | Common stock |
Capital surplus | 213,250 | - | (13,808) | 199,442 | Capital surplus |
Retained earnings | 1,857,741 | - | (46,393) | 1,811,348 | Retained earnings |
Accumulated other comprehensive income (loss) | 14,472 | - | 95,020 | 109,492 | Accumulated other comprehensive income (loss) |
Treasury stock at cost | (1,928) | - | - | (1,928) | Treasury stock at cost |
Noncontrolling interests | 104,790 | - | (1,745) | 103,045 | Non-controlling interests |
Total equity | 2,364,145 | - | 33,074 | 2,397,219 | Total equity |
Total liabilities and equity | 4,264,559 | - | 41,021 | 4,305,580 | Total liabilities and equity |
Balance of Debt | 311,485 | - | 465 | 311,950 | Balance of Debt |
|
|
|
|
|
|
Accumulated other comprehensive income (loss): |
|
|
|
| Accumulated other comprehensive income (loss): |
Foreign currency translation adjustments | 34,149 | - | (16,600) | 17,549 | Exchange differences on translating foreign operations |
Pension liability adjustments | (141,075) | - | 141,075 | - | Remeasurements of defined benefit pension plans |
Unrealized gains on securities | 121,413 | - | (29,461) | 91,952 | Financial assets measured at fair value through other comprehensive income |
Unrealized gains (losses) on derivative instruments | (15) | - | 6 | (9) | Net changes in the fair value of cash flow hedges |
Notes to reconciliation of equity
The principal effects of transition to IFRS in the reconciliation of equity above are as follows:
(1) Reclassification
The main elements of reclassification are as follows:
(a) In accordance with the presentation provisions under IFRS, other financial assets are presented separately.
(b) Part of trade receivables, prepaid expenses and other current assets and other assets, etc. are reclassified based on the definition and recognition criteria of IFRS.
(c) Part of trade payables, other current liabilities and other fixed liabilities are reclassified based on the definition and recognition criteria of IFRS.
(2) Recognition and measurement differences
The main elements of recognition and measurement differences are as follows:
(a) Employee benefits
Under US GAAP, actuarial gains and losses and past service costs are deferred in accumulated other comprehensive income, subsequently amortized for a specified future period and recognized in profit or loss. Current service costs, interest costs and expected return on plan assets are recognized in profit or loss for the fiscal year.
Under IFRS, on the other hand, changes resulting from remeasurement of defined-benefit corporate pension plans, defined benefit obligation on lump-sum payment plans and plan assets required by IFRS are recognized in other comprehensive income, and reclassified from accumulated other comprehensive income directly to retained earnings, not through profit or loss. Past service costs arising from plan amendments are fully recognized immediately in profit or loss. Current service costs are recognized in profit or loss. Interest costs are recognized in profit or loss at the amount determined by multiplying the net amount of the defined benefit obligation and plan assets by the discount rate used to determine the present value of the obligation.
(b) Equity instruments
Under US GAAP, non-marketable equity instruments are recognized at their cost. If fair value of equity instruments has decreased and the decrease is considered not to be temporary, impairment loss is recognized for the amount of the cost of the equity instruments in excess of fair value. Gains or losses on the sale of these equity instruments are recognized in profit or loss.
Under IFRS, on the other hand, all equity instruments are recognized at fair value irrespective of whether there is an active market. Since it is permitted to recognize changes in fair value in other comprehensive income, the Company and its consolidated subsidiaries have elected to recognize changes in fair value of equity instruments in other comprehensive income. Accordingly, loss on impairment and gains or losses on the sale of equity instruments recognized in profit or loss under US GAAP are recognized in other comprehensive income as well.
(c) Income taxes
Under US GAAP, tax expenses incurred by sellers are deferred using the deferral method for differences arising from unrealized profits and losses from intercompany transactions.
Under IFRS, on the other hand, a difference between the carrying amount and the sale price of an asset sold is recognized as a future deductible temporary difference based on the asset-and-liability approach. A deferred tax asset is recognized for the future deductible temporary difference using purchaser's effective tax rate while taking its recoverability into consideration.
Under US GAAP, deferred tax liabilities for temporary differences associated with investments in equity investees are recognized using tax rates applicable on the premise that the temporary difference will be reversed at the time of sale of the equity investees even if a company intends to continue to hold the investments. In principle, deferred tax liabilities are recognized for the undistributed earnings of subsidiaries, etc.
Under IFRS, deferred tax liabilities are in principle recognized for all the taxable temporary differences using tax rates applied when the taxable temporary differences reverse, such as when receiving dividends or selling the investments. Deferred tax liabilities are recognized for the taxable temporary differences associated with investments in subsidiaries etc. which are probable to reverse in the foreseeable future.
(d) Exchange differences on translating foreign operations
Cumulative exchange differences on translating foreign operations are all deemed to be zero at the date of transition to IFRS. Consequently, exchange differences on translating foreign operations included in accumulated other comprehensive income as at the transition date were fully reclassified to retained earnings.
(e) Exclusion of equity investees
Under US GAAP, when an investee no longer qualifies as an equity investee, the difference between the sale price and the carrying amount of the interest sold is recognized in profit or loss. If an investor retains a residual interest, gains or losses recognized in prior periods remain included in the carrying amount of the residual interest.
Under IFRS, on the other hand, when an investee no longer qualifies as an equity investee, the residual interest is measured at fair value if an investor retains a residual interest. The sale price and the difference between the fair value and the carrying amount of the residual interest at the point when an investee no longer qualifies as an equity investee is recognized in profit or loss.
(f) Government grants
Under US GAAP, government grants related to acquisition of assets are not reflected in the carrying amounts of assets because there are no accounting standards for such government grants.
Under IFRS, on the other hand, government grants related to assets are recognized as reducing the carrying amount of the asset by the government grants received.
(g) Impairment of non-financial assets
Under US GAAP, if there is an indication that a fixed asset may be impaired, the carrying amount and the undiscounted estimated future cash flows of the asset is compared. If the carrying amount exceeds the estimated future cash flows, any excess of the carrying amount over the fair value is recognized as an impairment loss.
Under IFRS, on the other hand, if there is an indication that a fixed asset may be impaired, any excess of the carrying amount over the recoverable amount of the fixed asset (the higher of value in use or fair value less costs of disposal) is recognized as an impairment loss of the fixed asset.
(h) Business combinations
Under US GAAP, in business combinations, the acquirer measures the acquiree as a whole (including non-controlling interests) at fair value and goodwill is recognized including the portion of goodwill attributable to the non-controlling interests.
Under IFRS, on the other hand, in business combinations it is permitted to elect to apply either method: the acquirer measures the acquiree as a whole (including non-controlling interests) at fair value and goodwill is recognized including the portion of goodwill attributable to the non-controlling interests; or non-controlling interest is measured as a proportional interest in the fair value of the acquiree's net identifiable assets and goodwill is recognized only for the acquirer's share. The Company elected the method of measuring non-controlling interest as a proportional interest in the fair value of the acquiree's net identifiable assets and recognizing goodwill only for the acquirer's share. Capital surplus is recognized when non-controlling interests are additionally acquired after the date when control was obtained.
Reconciliation of Profit or Loss and Comprehensive Income for the First Half of the Previous Fiscal Year (from April 1, 2017 to September 30, 2017)
(Condensed Quarterly Consolidated Statements of Profit or Loss) (In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
Net sales | 2,076,342 | - | 35,425 | 2,111,767 | Net sales |
Cost of sales | 1,412,241 | (124) | 50,442 | 1,462,559 | Cost of sales |
Selling, general and administrative expenses | 513,273 | 482 | (17,742) | 496,013 | Selling, general and administrative expenses |
Loss on impairment of long-lived assets | 1,532 | (1,532) | - | - |
|
| - | (387) | 17 | (370) | Other profit (loss) |
Operating income | 149,296 | 787 | 2,742 | 152,825 | Operating income |
Other income | 41,701 | - | - | - |
|
Interest and Dividends | 4,885 | 21,289 | (21,289) | 4,885 | Financial income |
Equity in earnings of affiliated companies | 9,967 | (9,967) | - | - |
|
Other | 26,849 | (26,849) | - | - |
|
Other expenses | 5,754 | - | - | - |
|
Interest | 1,439 | 19 | 67 | 1,525 | Financial expenses |
Other | 4,315 | (4,315) | - | - |
|
| - | 9,967 | 20 | 9,987 | Share of profit of investments accounted for using the equity method |
Income before income taxes | 185,243 | (477) | (18,594) | 166,172 | Income before income taxes |
Income taxes | 48,529 | (477) | (8,666) | 39,386 | Income tax expenses |
Net income | 136,714 | - | (9,928) | 126,786 | Net income |
|
|
|
|
| Net income attributable to: |
Net income attributable to the noncontrolling interests | 5,590 | - | 224 | 5,814 | Non-controlling interests |
Net income attributable to Mitsubishi Electric Corp. | 131,124 | - | (10,152) | 120,972 | Mitsubishi Electric Corp. stockholders |
(Condensed Quarterly Consolidated Statements of Comprehensive Income) (In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
Net income | 136,714 | - | (9,928) | 126,786 | Net income |
Other comprehensive income (loss), net of tax |
|
|
|
| (Other comprehensive income (loss), net of tax) |
|
|
|
|
| Items that will not be reclassified to net income |
Unrealized gains (losses) on securities | (3,296) | (597) | 13,614 | 9,721 | Financial assets measured at fair value through other comprehensive income |
Pension liability adjustments | 17,869 | (342) | (17,527) | - | Remeasurements of defined benefit pension plans |
| - | 939 | (342) | 597 | Share of other comprehensive income of investments accounted for using the equity method |
| - | - | (4,255) | 10,318 | Subtotal |
|
|
|
|
| Items that may be reclassified to net income |
Foreign currency translation adjustments | 26,665 | 128 | 4,766 | 31,559 | Exchange differences on translating foreign operations |
Unrealized gains (losses) on derivative instruments | (82) | 14 | 73 | 5 | Net changes in the fair value of cash flow hedges |
| - | (142) | (43) | (185) | Share of other comprehensive income of investments accounted for using the equity method |
| - | - | 4,796 | 31,379 | Subtotal |
Total | 41,156 | - | 541 | 41,697 | Total other comprehensive income |
Comprehensive income | 177,870 | - | (9,387) | 168,483 | Comprehensive income |
|
|
|
|
| Comprehensive income attributable to: |
Comprehensive income attributable tothe noncontrolling interests | 7,625 | - | 163 | 7,788 | Non-controlling interests |
Comprehensive income attributable toMitsubishi Electric Corp. | 170,245 | - | (9,550) | 160,695 | Mitsubishi Electric Corp. stockholders |
Reconciliation of Profit or Loss and Comprehensive Income for the Second Quarter of the Previous Fiscal Year (from July 1, 2017 to September 30, 2017)
(Condensed Quarterly Consolidated Statements of Profit or Loss) (In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
Net sales | 1,070,743 | - | 7,088 | 1,077,831 | Net sales |
Cost of sales | 731,009 | (85) | 14,670 | 745,594 | Cost of sales |
Selling, general and administrative expenses | 263,152 | 21 | (8,770) | 254,403 | Selling, general and administrative expenses |
Loss on impairment of long-lived assets | 1,532 | (1,532) | - | - |
|
| - | (530) | 28 | (502) | Other profit (loss) |
Operating income | 75,050 | 1,066 | 1,216 | 77,332 | Operating income |
Other income | 13,387 | - | - | - |
|
Interest and Dividends | 1,298 | 1,532 | (1,363) | 1,467 | Financial income |
Equity in earnings of affiliated companies | 7,562 | (7,562) | - | - |
|
Other | 4,527 | (4,527) | - | - |
|
Other expenses | 2,442 | - | - | - |
|
Interest | 762 | (4) | 4 | 762 | Financial expenses |
Other | 1,680 | (1,680) | - | - |
|
| - | 7,562 | 127 | 7,689 | Share of profit of investments accounted for using the equity method |
Income before income taxes | 85,995 | (245) | (24) | 85,726 | Income before income taxes |
Income taxes | 19,288 | (245) | (893) | 18,150 | Income tax expenses |
Net income | 66,707 | - | 869 | 67,576 | Net income |
|
|
|
|
| Net income attributable to: |
Net income attributable to the noncontrolling interests | 3,327 | - | 262 | 3,589 | Non-controlling interests |
Net income attributable to Mitsubishi Electric Corp. | 63,380 | - | 607 | 63,987 | Mitsubishi Electric Corp. stockholders |
(Condensed Quarterly Consolidated Statements of Comprehensive Income) (In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
Net income | 66,707 | - | 869 | 67,576 | Net income |
Other comprehensive income (loss), net of tax |
|
|
|
| (Other comprehensive income (loss), net of tax) |
|
|
|
|
| Items that will not be reclassified to net income |
Unrealized gains on securities | 18,342 | (310) | 823 | 18,855 | Financial assets measured at fair value through other comprehensive income |
Pension liability adjustments | 5,392 | (163) | (5,229) | - | Remeasurements of defined benefit pension plans |
| - | 473 | (163) | 310 | Share of other comprehensive income of investments accounted for using the equity method |
| - | - | (4,569) | 19,165 | Subtotal |
|
|
|
|
| Items that may be reclassified to net income |
Foreign currency translation adjustments | 21,945 | (727) | (2,199) | 19,019 | Exchange differences on translating foreign operations |
Unrealized gains (losses) on derivative instruments | (19) | 11 | 10 | 2 | Net changes in the fair value of cash flow hedges |
| - | 716 | (44) | 672 | Share of other comprehensive income of investments accounted for using the equity method |
| - | - | (2,233) | 19,693 | Subtotal |
Total | 45,660 | - | (6,802) | 38,858 | Total other comprehensive income |
Comprehensive income | 112,367 | - | (5,933) | 106,434 | Comprehensive income |
|
|
|
|
| Comprehensive income attributable to: |
Comprehensive income attributable tothe noncontrolling interests | 5,113 | - | 153 | 5,266 | Non-controlling interests |
Comprehensive income attributable toMitsubishi Electric Corp. | 107,254 | - | (6,086) | 101,168 | Mitsubishi Electric Corp. stockholders |
Reconciliation of Profit or Loss and Comprehensive Income for the Previous Fiscal Year (from April 1, 2017 to March 31, 2018)
(Consolidated Statements of Profit or Loss) (In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
Net sales | 4,431,198 | - | 13,226 | 4,444,424 | Net sales |
Cost of sales | 3,030,902 | - | 53,024 | 3,083,926 | Cost of sales |
Selling, general and administrative expenses | 1,061,778 | 729 | (34,623) | 1,027,884 | Selling, general and administrative expenses |
Loss on impairment oflong-lived assets | 19,881 | (19,881) | - | - |
|
| - | (20,990) | 15,820 | (5,170) | Other profit (loss) |
Operating income | 318,637 | (1,838) | 10,645 | 327,444 | Operating income |
Other income | 60,414 | - | - | - |
|
Interest and Dividends | 8,611 | 23,637 | (23,637) | 8,611 | Financial income |
Equity in earnings of affiliated companies | 22,261 | (22,261) | - | - |
|
Other | 29,542 | (29,542) | - | - |
|
Other expenses | 14,473 | - | - | - |
|
Interest | 2,727 | 4,726 | (657) | 6,796 | Financial expenses |
Other | 11,746 | (11,746) | - | - |
|
| - | 22,261 | 1,686 | 23,947 | Share of profit of investments accounted for using the equity method |
Income before income taxes | 364,578 | (723) | (10,649) | 353,206 | Income before income taxes |
Income taxes | 82,239 | (723) | 5,291 | 86,807 | Income tax expenses |
Net income | 282,339 | - | (15,940) | 266,399 | Net income |
|
|
|
|
| Net income attributable to: |
Net income attributable to the noncontrolling interests | 10,459 | - | 185 | 10,644 | Non-controlling interests |
Net income attributable to Mitsubishi Electric Corp. | 271,880 | - | (16,125) | 255,755 | Mitsubishi Electric Corp. stockholders |
(Consolidated Statements of Comprehensive Income) (In millions of yen)
Presentation under US GAAP | US GAAP | Re-classification | Recognition and measurement differences | IFRS | Presentation under IFRS |
Net income | 282,339 | - | (15,940) | 266,399 | Net income |
Other comprehensive income (loss), net of tax |
|
|
|
| (Other comprehensive income (loss), net of tax) |
|
|
|
|
| Items that will not be reclassified to net income |
Unrealized gains (losses) on securities | (14,875) | 392 | 14,431 | (52) | Financial assets measured at fair value through other comprehensive income |
Pension liability adjustments | 15,857 | (596) | 6,062 | 21,323 | Remeasurements of defined benefit pension plans |
| - | 204 | (34) | 170 | Share of other comprehensive income of investments accounted for using the equity method |
| - | - | 20,459 | 21,441 | Subtotal |
|
|
|
|
| Items that may be reclassified to net income |
Foreign currency translation adjustments | 17,023 | (1,908) | 1,877 | 16,992 | Exchange differences on translating foreign operations |
Unrealized gains (losses) on derivative instruments | (88) | (6) | 23 | (71) | Net changes in the fair value of cash flow hedges |
| - | 1,914 | (45) | 1,869 | Share of other comprehensive income of investments accounted for using the equity method |
| - | - | 1,855 | 18,790 | Subtotal |
Total | 17,917 | - | 22,314 | 40,231 | Total Other comprehensive income |
Comprehensive income | 300,256 | - | 6,374 | 306,630 | Comprehensive income |
|
|
|
|
| Comprehensive income attributable to: |
Comprehensive income attributable tothe noncontrolling interests | 11,852 | - | 68 | 11,920 | Non-controlling interests |
Comprehensive income attributable toMitsubishi Electric Corp. | 288,404 | - | 6,306 | 294,710 | Mitsubishi Electric Corp. stockholders |
Notes to Reconciliation of Profit or Loss and Comprehensive Income
The principal effects of transition to IFRS in the reconciliation of profit or loss and comprehensive income above are as follows:
(1) Reclassification
The main elements of reclassification are as follows:
(a) In accordance with the presentation provisions under IFRS, financial income and financial expenses are presented separately.
(b) In accordance with the presentation provisions under IFRS, part of other income and other expenses, etc. is included and presented in operating profit.
(c) Unrealized gains (losses) on securities, pension liability adjustments, foreign currency translation adjustments and unrealized gains (losses) on derivative instruments in other comprehensive income that are attributable to equity investees are reclassified in accordance with the presentation provisions under IFRS.
(2) Recognition and measurement differences
The main elements of recognition and measurement differences are as follows:
(a) Reconciliation of sales and cost of sales
Under US GAAP, if amounts of construction contracts cannot be reliably estimated, all construction costs and construction revenue are recognized when the construction is complete.
Under IFRS, on the other hand, revenue from a performance obligation satisfied over time is recognized using the cost recovery method if the outcome cannot be reliably estimated. Revenues using the cost recovery method are only recognized for costs incurred to the extent that it is probable that the cost will be recovered and costs are recognized as expenses in the period in which they are incurred.
(b) Equity instruments
Non-marketable equity instruments are recognized at their cost under US GAAP. If fair value of equity instruments has decreased and the decrease is considered not to be temporary, impairment loss is recognized for the amount of the cost of the equity instruments in excess of fair value. Gains or losses on the sale of these equity instruments are recognized in profit or loss.
Under IFRS, on the other hand, equity instruments are recognized at fair value irrespective of whether there is an active market. Because it is permitted to recognize changes in fair value in other comprehensive income, the Company and its consolidated subsidiaries have elected to recognize changes in fair value of equity instruments in other comprehensive income. Accordingly, loss on impairment and gains or losses on the sale of equity instruments recognized in profit or loss under US GAAP are recognized in other comprehensive income as well.
Notes to Reconciliation of Cash Flows
There are no significant differences in the statement of cash flows resulting from transition from US GAAP to IFRS.
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 Group trusts and considers to be reasonable under the circumstances on the date of announcement, actual financial standings and 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 a decline in value of the Group's marketable securities and 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.
###
About Mitsubishi Electric Corporation
With nearly 100 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 4,444.4 billion yen (in accordance with IFRS; US$ 41.9 billion*) in the fiscal year ended March 31, 2018. For more information visit:
www.MitsubishiElectric.com
*At an exchange rate of 106 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2018
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