28 Oct 2021 07:00
FOR IMMEDIATE RELEASE | No. 3447 |
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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 |
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Cad.Irg@rk.MitsubishiElectric.co.jp | prd.gnews@nk.MitsubishiElectric.co.jp |
| www.MitsubishiElectric.com/news/ |
Mitsubishi Electric Announces Consolidated Financial Resultsfor the First Half and Second Quarter of Fiscal 2022
TOKYO, October 28, 2021 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated financial results for the first half and second quarter, ended September 30, 2021, of the current fiscal year ending March 31, 2022 (fiscal 2022).
1. Consolidated Half-year Results (April 1, 2021 - September 30, 2021)
Revenue: | 2,138.3 | billion yen | (12% increase from the same period last year) |
Operating profit: | 137.8 | billion yen | (125% increase from the same period last year) |
Profit before income taxes: | 148.3 | billion yen | (96% increase from the same period last year) |
Net profit attributable to Mitsubishi Electric Corp. stockholders: | 104.8 | billion yen | (117% increase from the same period last year) |
The economy in the first half of fiscal 2022, from April through September 2021, generally continued to see recovery in the corporate sector in the U.S., Europe and Japan. The household sector also recovered in the U.S. and Europe due to the progress in the novel coronavirus diseases (COVID-19) vaccinations, while the continuing impact of COVID-19 put downward pressure on recovery of the household sector in Japan. China continued to see recovery in export, while the paces of recovery in manufacturing and the household sector slowed down.
Revenue
Revenue in the first half increased by 236.3 billion yen from the same period of the previous fiscal year to 2,138.3 billion yen due primarily to increased revenue in Industrial Automation Systems, Home Appliances and Electronic Devices segments. Industrial Automation Systems segment saw an increase in the factory automation systems business due mainly to an increase in demand for capital expenditures relating to semiconductor, electronic components, smartphones and lithium-ion battery worldwide. The automotive equipment business also increased as demand for new cars recovered in all regions except for China. Home Appliances segment increased because demand for air conditioners remained buoyant particularly in Europe and North America. Electronic Devices segment increased due primarily to recovery in demand for power modules.
Operating Profit
Operating profit increased by 76.4 billion yen from the same period of the previous fiscal year to 137.8 billion yen due mainly to increased operating profit in Industrial Automation Systems and Home Appliances segments. Operating profit ratio improved by 3.2% from the same period of the previous fiscal year to 6.4%.
The cost ratio improved by 2.0% from the same period of the previous fiscal year due primarily to higher operating ratio caused by increased revenue of Industrial Automation Systems and Home Appliances segments in addition to the yen depreciating against other currencies. Selling, general and administrative expenses increased by 32.3 billion yen from the same period of the previous fiscal year, but selling, general and administrative expenses to revenue ratio improved by 1.1%. Other profit (loss) increased by 1.9 billion yen from the same period of the previous fiscal year, and other profit (loss) to revenue ratio improved by 0.1%.
Profit before income taxes
Profit before income taxes increased by 72.7 billion yen from the same period of the previous fiscal year to 148.3 billion yen due primarily to an increase in operating profit. Profit before income taxes to revenue ratio was 6.9%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders increased by 56.6 billion yen from the same period of the previous fiscal year to 104.8 billion yen due mainly to increased profit before income taxes. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 4.9%.
Consolidated Financial Results by Business Segment (First Half, Fiscal 2022)
Energy and Electric Systems
Revenue: | 560.8 | billion yen | (1% decrease from the same period last year which recorded 564.7 billion yen) |
Operating profit: | 20.6 | billion yen | (5.6 billion yen decrease from the same period last year which recorded 26.2 billion yen) |
The market of the social infrastructure systems business saw a decrease in demand relating to power generation in Japan and the reconsideration of the capital expenditure plans by railway companies in Japan due to the impact of COVID-19. In this environment, the business saw a decrease in orders from the same period of the previous fiscal year due primarily to a decrease in the power systems business worldwide and the transportation systems business in Japan. Revenue also decreased from the same period of the previous fiscal year due mainly to a decrease in the transportation systems business worldwide.
The market of the building systems business saw recovery from stagnation caused by the impact of COVID-19 primarily in China, while recovery is delayed in some parts of Asia. In this environment, the business saw increases in both orders and revenue from the same period of the previous fiscal year due primarily to an increase in China.
As a result, revenue for this segment decreased by 1% from the same period of the previous fiscal year to 560.8 billion yen.
Operating profit decreased by 5.6 billion yen from the same period of the previous fiscal year to 20.6 billion yen due mainly to decreased revenue and a shift in project portfolios.
Industrial Automation Systems
Revenue: | 692.1 | billion yen | (26% increase from the same period last year which recorded 548.6 billion yen) |
Operating profit: | 55.5 | billion yen | (53.7 billion yen increase from the same period last year which recorded 1.7 billion yen) |
The market of the factory automation systems business saw an increase in demand for capital expenditures relating to semiconductor, electronic components, smartphones and lithium-ion battery worldwide. In this environment, the business saw increases in both orders and revenue from the same period of the previous fiscal year.
The market of the automotive equipment business saw recovery in demand for new cars in all regions except for China. In this environment, the business saw increases in both orders and revenue from the same period of the previous fiscal year due mainly to increases in electrical components and electric vehicle-related equipment such as motors and inverters.
As a result, revenue for this segment increased by 26% from the same period of the previous fiscal year to 692.1 billion yen.
Operating profit increased by 53.7 billion yen from the same period of the previous fiscal year to 55.5 billion yen due mainly to increased revenue and the yen depreciating against other currencies.
Information and Communication Systems
Revenue: | 154.1 | billion yen | (7% decrease from the same period last year which recorded 165.5 billion yen) |
Operating profit: | 4.6 | billion yen | (0.2 billion yen decrease from the same period last year which recorded 4.8 billion yen) |
The market of the information systems and service business saw a decrease in large-scale projects for the system integrations and the IT infrastructure service businesses, while delayed system development projects, particularly in the manufacturing industry, restarted. In this environment, the business saw an increase in orders but a decrease in revenue from the same period of the previous fiscal year.
The electronic systems business saw a decrease in orders from the same period of the previous fiscal year due primarily to a decrease in large-scale projects for the space systems business. Revenue also decreased from the same period of the previous fiscal year due mainly to a decrease in large-scale projects for the defense systems business.
As a result, revenue for this segment decreased by 7% from the same period of the previous fiscal year to 154.1 billion yen.
Operating profit decreased by 0.2 billion yen from the same period of the previous fiscal year to 4.6 billion yen due mainly to decreased revenue and a shift in project portfolios.
Electronic Devices
Revenue: | 120.4 | billion yen | (20% increase from the same period last year which recorded 100.5 billion yen) |
Operating profit: | 5.1 | billion yen | (0.6 billion yen decrease from the same period last year which recorded 5.8 billion yen) |
The market of the electronic devices business saw recovery in demand for power modules used in industrial, consumer and automotive applications. In this environment, the business saw an increase in orders from the same period of the previous fiscal year and revenue increased by 20% from the same period of the previous fiscal year to 120.4 billion yen due primarily to an increase in power modules used in industrial, consumer and automotive applications.
Operating profit decreased by 0.6 billion yen from the same period of the previous fiscal year to 5.1 billion yen due mainly to an increased cost relating to end of production of TFT-LCD modules.
Home Appliances
Revenue: | 595.6 | billion yen | (18% increase from the same period last year which recorded 503.7 billion yen) |
Operating profit: | 58.3 | billion yen | (22.8 billion yen increase from the same period last year which recorded 35.5 billion yen) |
The market of the home appliances business saw an increase in demand for residential air conditioners primarily in Europe and North America as working from home becomes common. Demand for industrial air conditioners also recovered gradually as capital expenditures started to recover from the impact of COVID-19. In this environment, the business saw an increase in revenue by 18% from the same period of the previous fiscal year to 595.6 billion yen due primarily to an increase in air conditioners primarily in Europe and North America.
Operating profit increased by 22.8 billion yen from the same period of the previous fiscal year to 58.3 billion yen due mainly to increased revenue and the yen depreciating against other currencies.
Others
Revenue: | 319.1 | billion yen | (17% increase from the same period last year which recorded 272.4 billion yen) |
Operating profit: | 8.2 | billion yen | (6.2 billion yen increase from the same period last year which recorded 1.9 billion yen) |
Revenue increased by 17% from the same period of the previous fiscal year to 319.1 billion yen due primarily to increases in materials procurement and logistics.
Operating profit increased by 6.2 billion yen from the same period of the previous fiscal year to 8.2 billion yen due mainly to increased revenue.
2. Consolidated Second-quarter Results (July 1, 2021 - September 30, 2021)
Revenue: | 1,071.9 | billion yen | (3% increase from the same period last year) |
Operating profit: | 55.0 | billion yen | (34% increase from the same period last year) |
Profit before income taxes: | 58.8 | billion yen | (21% increase from the same period last year) |
Net profit attributable to Mitsubishi Electric Corp. stockholders: | 43.0 | billion yen | (42% increase from the same period last year) |
Revenue
Revenue in the second quarter increased by 28.0 billion yen from the same period of the previous fiscal year to 1,071.9 billion yen due primarily to increased revenue in Industrial Automation Systems, Home Appliances and Electronic Devices segments. Industrial Automation Systems segment saw an increase in the factory automation systems business due mainly to an increase in demand for capital expenditures relating to semiconductor, electronic components, smartphones and lithium-ion battery worldwide. Meanwhile, the automotive equipment business decreased as demand for new cars decreased globally due primarily to a semiconductor shortage. Home Appliances segment increased because demand for air conditioners remained buoyant particularly in Europe and North America, while demand for residential air conditioners decreased in Japan due to unseasonable weather. Electronic Devices segment increased due primarily to recovery in demand for power modules.
Operating Profit
Operating profit increased by 13.9 billion yen from the same period of the previous fiscal year to 55.0 billion yen due mainly to increased operating profit in Industrial Automation Systems and Energy and Electric Systems segments. Operating profit ratio improved by 1.2% from the same period of the previous fiscal year to 5.1% due primarily to increased revenue.
The cost ratio improved by 1.7% from the same period of the previous fiscal year due mainly to higher operating ratio caused by increased revenue of Industrial Automation Systems segment in addition to the yen depreciating against other currencies. Selling, general and administrative expenses increased by 13.7 billion yen from the same period of the previous fiscal year, and selling, general and administrative expenses to revenue ratio deteriorated by 0.7%. Other profit (loss) improved by 1.2 billion yen from the same period of the previous fiscal year, while other profit (loss) to revenue ratio improved by 0.2%.
Profit before income taxes
Profit before income taxes increased by 10.3 billion yen from the same period of the previous fiscal year to 58.8 billion yen due primarily to an increase in operating profit. Profit before income taxes to revenue ratio was 5.5%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders increased by 12.6 billion yen from the same period of the previous fiscal year to 43.0 billion yen due mainly to increased profit before income taxes. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 4.0%.
Consolidated Financial Results by Business Segment (Second Quarter, Fiscal 2022)
Energy and Electric Systems
Revenue: | 297.2 | billion yen | (1% decrease from the same period last year which recorded 298.9 billion yen) |
Operating profit: | 8.8 | billion yen | (1.1 billion yen increase from the same period last year which recorded 7.6 billion yen) |
The market of the social infrastructure systems business saw a decrease in demand relating to power generation in Japan and the reconsideration of the capital expenditure plans by railway companies in Japan due to the impact of COVID-19. In this environment, the business saw a decrease in orders from the same period of the previous fiscal year due primarily to a decrease in the power systems business worldwide and the transportation systems business in Japan. Revenue also decreased from the same period of the previous fiscal year due mainly to a decrease in the transportation systems business worldwide.
The market of the building systems business saw recovery from stagnation caused by the impact of COVID-19 primarily in China, while recovery is delayed in some parts of Asia. In this environment, the business saw increases in both orders and revenue from the same period of the previous fiscal year due primarily to an increase in primarily in China.
As a result, revenue for this segment decreased by 1% from the same period of the previous fiscal year to 297.2 billion yen.
Operating profit increased by 1.1 billion yen from the same period of the previous fiscal year to 8.8 billion yen due mainly to a shift in project portfolios.
Industrial Automation Systems
Revenue: | 335.6 | billion yen | (7% increase from the same period last year which recorded 312.3 billion yen) |
Operating profit: | 20.5 | billion yen | (15.3 billion yen increase from the same period last year which recorded 5.1 billion yen) |
The market of the factory automation systems business saw an increase in demand for capital expenditures relating to semiconductor, electronic components, smartphones and lithium-ion battery worldwide. In this environment, the business saw increases in both orders and revenue from the same period of the previous fiscal year.
The market of the automotive equipment business saw a decrease in demand for new cars worldwide due primarily to a semiconductor shortage. In this environment, the business saw decreases in both orders and revenue from the same period of the previous fiscal year due mainly to decrease in electrical components.
As a result, revenue for this segment increased by 7% from the same period of the previous fiscal year to 335.6 billion yen.
Operating profit increased by 15.3 billion yen from the same period of the previous fiscal year to 20.5 billion yen due mainly to increased revenue and the yen depreciating against other currencies.
Information and Communication Systems
Revenue: | 90.0 | billion yen | (12% decrease from the same period last year which recorded 102.2 billion yen) |
Operating profit: | 4.6 | billion yen | (0.8 billion yen decrease from the same period last year which recorded 5.4 billion yen) |
The market of the information systems and service business saw a decrease in large-scale projects for the system integrations business, while delayed system development projects, particularly in the manufacturing industry, restarted. In this environment, the business saw an increase in orders but a decrease in revenue from the same period of the previous fiscal year.
The electronic systems business saw a decrease in orders from the same period of the previous fiscal year due primarily to a decrease in large-scale projects for the space systems business. Revenue also decreased from the same period of the previous fiscal year due mainly to a decrease in large-scale projects for the defense systems business.
As a result, revenue for this segment decreased by 12% from the same period of the previous fiscal year to 90.0 billion yen.
Operating profit decreased by 0.8 billion yen from the same period of the previous fiscal year to 4.6 billion yen due mainly to decreased revenue and a shift in project portfolios.
Electronic Devices
Revenue: | 60.1 | billion yen | (18% increase from the same period last year which recorded 50.8 billion yen) |
Operating profit: | 1.8 | billion yen | (0.8 billion yen decrease from the same period last year which recorded 2.7 billion yen) |
The market of the electronic devices business saw recovery in demand for power modules used in industrial and consumer applications. In this environment, the business saw an increase in orders from the same period of the previous fiscal year and revenue increased by 18% from the same period of the previous fiscal year to 60.1 billion yen due primarily to an increase in power modules used in industrial and consumer applications.
Operating profit decreased by 0.8 billion yen from the same period of the previous fiscal year to 1.8 billion yen due mainly to an increased cost relating to end of production of TFT-LCD modules.
Home Appliances
Revenue: | 280.2 | billion yen | (5% increase from the same period last year which recorded 266.3 billion yen) |
Operating profit: | 19.0 | billion yen | (2.9 billion yen decrease from the same period last year which recorded 22.0 billion yen) |
The market of the home appliances business saw an increase in demand for residential air conditioners primarily in Europe and North America as working from home becomes common, while demand for residential air conditioners decreased in Japan due to unseasonable weather. Demand for industrial air conditioners also recovered gradually as capital expenditures started to recover from the impact of COVID-19. In this environment, the business saw an increase in revenue by 5% from the same period of the previous fiscal year to 280.2 billion yen due primarily to an increase in air conditioners primarily in Europe and North America.
Operating profit decreased by 2.9 billion yen from the same period of the previous fiscal year to 19.0 billion yen due mainly to material prices soaring.
Others
Revenue: | 165.7 | billion yen | (13% increase from the same period last year which recorded 147.0 billion yen) |
Operating profit: | 4.8 | billion yen | (1.4 billion yen increase from the same period last year which recorded 3.3 billion yen) |
Revenue increased by 13% from the same period of the previous fiscal year to 165.7 billion yen due primarily to increases in materials procurement and logistics.
Operating profit increased by 1.4 billion yen from the same period of the previous fiscal year to 4.8 billion yen due mainly to increased revenue.
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 86.2 billion yen to 4,711.6 billion yen. The change in balance of total assets was mainly attributable to decreases in trade receivables by 187.7 billion yen, while inventories increased by 98.0 billion yen.
Trade receivables decreased due mainly to credit collection for projects from the previous fiscal year. Inventories increased due primarily to recovery in demand for Industrial Automation Systems.
Total liabilities decreased from the end of the previous fiscal year by 125.3 billion yen to 1,801.9 billion yen due primarily to decreases in trade payables by 27.1 billion yen, bonds, borrowings and lease liabilities by 25.6 billion yen, and other current liabilities by 75.5 billion yen. Bonds and borrowings decreased by 22.1 billion yen from the end of the previous fiscal year to 226.7 billion yen, with the ratio of bonds and borrowings to total assets recording 4.8%, representing a 0.4 point decrease compared to the end of the previous fiscal year.
Mitsubishi Electric Corporation stockholders' equity increased by 40.4 billion yen compared to the end of the previous fiscal year to 2,794.7 billion yen. The stockholders' equity ratio was recorded at 59.3%, representing a 1.9 point increase compared to the end of the previous fiscal year. These changes referred to above primarily result from an increase from recording a net profit attributable to Mitsubishi Electric Corporation stockholders of 104.8 billion yen, despite a decrease due to dividend payment of 55.8 billion yen.
An analysis on the status of cash flow on a consolidated basis
Cash flows from operating activities for the first half of fiscal 2022 was 164.9 billion yen (cash in), while cash flows from investing activities was 79.3 billion yen (cash out). As a result, free cash flow was 85.5 billion yen (cash in). Cash flows from financing activities was 132.5 billion yen (cash out), and cash and cash equivalents at end of period decreased from the end of the previous fiscal year by 45.4 billion yen to 721.9 billion yen.
Net cash provided by operating activities decreased by 92.0 billion yen from the same period of the previous fiscal year due primarily to an increase in inventories despite increased profit.
Net cash used in investing activities decreased by 28.4 billion yen from the same period of the previous fiscal year due mainly to a decrease in purchase of property, plant and equipment in for the first half of fiscal 2022 as a result of restricted capital expenditures in the previous fiscal year.
Net cash used in financing activities increased by 87.0 billion yen from the same period of the previous fiscal year due primarily to an increase in expenditure for repayments of bonds, a decrease in proceeds of short-term borrowings, and an increase in repurchase of treasury stock.
Forecast for Fiscal 2022
Mitsubishi Electric's business performance for fiscal 2022 is expected to exceed the company's previous forecast considering changes in exchange rates and latest orders received. As a result, the company's consolidated earnings forecast for fiscal 2022, ending March 31, 2022, has been revised from the announcement on July 29, 2021 as stated below.
Based on a certain premise, the company has taken into consideration the impact of improper testing, including costs for additional inspections and strengthening the quality control system. Depending on the progress of future discussions with customers and investigations, the Group may incur losses exceeding its premise or relating to the discovery of any other improper quality-related conduct. If any potential impact comes to light, it will be disclosed promptly. For more information regarding improper testing, please see "Relevant documents" of "Restoring trust: Our roadmap for reform."
https://reform.mitsubishielectric.com/relevant-documents/
Consolidated forecast for fiscal 2022
Consolidated | Previous forecast (announced July 29) | Current forecast | Change from previous forecast | |
Revenue: | 4,490.0 billion yen | 4,500.0 billion yen | (7% increase from fiscal 2021) | Up 10.0 billion yen, or 0% |
Operating profit: | 260.0 billion yen | 280.0 billion yen | (22% increase from fiscal 2021) | Up 20.0 billion yen, or 8% |
Profit before income taxes: | 285.0 billion yen | 305.0 billion yen | (18% increase from fiscal 2021) | Up 20.0 billion yen, or 7% |
Net profit attributable to Mitsubishi Electric Corp. stockholders: | 210.0 billion yen | 220.0 billion yen | (14% increase from fiscal 2021) | Up 10.0 billion yen, or 5% |
Exchange rates in and after the third quarter of fiscal 2022 is 110 yen to the U.S. dollar, which is 5 yen weaker from the company's previous announcement; 125 yen to the euro, which is unchanged from the company's previous announcement; and 17.0 yen to the Chinese yuan, which is 0.5 yen weaker from the company's previous announcement.
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 '21 1st half (A)(Apr. 1, 2020 - Sept. 30, 2020) | FY '22 1st half (B)(Apr. 1, 2021 - Sept. 30, 2021) |
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B - A | B/A (%) | |||
Revenue | 1,902.0 | 2,138.3 | 236.3 | 112 |
Operating profit | 61.3 | 137.8 | 76.4 | 225 |
Profit before income taxes | 75.6 | 148.3 | 72.7 | 196 |
Net profit attributable to Mitsubishi Electric Corp. stockholders | 48.2 | 104.8 | 56.6 | 217 |
Basic earnings per share attributable to Mitsubishi Electric Corp. stockholders | 22.48 yen | 48.94 yen | 26.46 yen | 218 |
2. Consolidated Second-quarter Results
(In billions of yen except where noted)
| FY '21 Q2 (A)(Jul. 1, 2020 -Sept. 30, 2020) | FY '22 Q2 (B)(Jul. 1, 2021 - Sept. 30, 2021) |
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B - A | B/A (%) | |||
Revenue | 1,043.8 | 1,071.9 | 28.0 | 103 |
Operating profit | 41.1 | 55.0 | 13.9 | 134 |
Profit before income taxes | 48.5 | 58.8 | 10.3 | 121 |
Net profit attributable to Mitsubishi Electric Corp. stockholders | 30.3 | 43.0 | 12.6 | 142 |
Basic earnings per share attributable to Mitsubishi Electric Corp. stockholders | 14.15 yen | 20.09 yen | 5.94 yen | 142 |
Notes:
1) Consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS).
2) The company has 206 consolidated subsidiaries.
Condensed Quarterly Consolidated Financial Statements
Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income (First Half, Fiscal 2022)
(Condensed Quarterly Consolidated Statement of Profit or Loss)
(In millions of yen)
| FY '21 1st half (Apr. 1, 2020 - Sept. 30, 2020) | FY '22 1st half (Apr. 1, 2021 - Sept. 30, 2021) |
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(A) | % of total | (B) | % of total | B - A | B/A (%) | |
Revenue | 1,902,024 | 100.0 | 2,138,377 | 100.0 | 236,353 | 112 |
Cost of sales | 1,384,823 | 72.8 | 1,514,319 | 70.8 | 129,496 | 109 |
Selling, general and administrative expenses | 456,533 | 24.0 | 488,887 | 22.9 | 32,354 | 107 |
Other profit (loss) | 686 | 0.0 | 2,659 | 0.1 | 1,973 | 388 |
Operating profit | 61,354 | 3.2 | 137,830 | 6.4 | 76,476 | 225 |
Financial income | 5,651 | 0.3 | 4,635 | 0.2 | (1,016) | 82 |
Financial expenses | 1,893 | 0.1 | 2,672 | 0.1 | 779 | 141 |
Share of profit of investments accounted for using theequity method | 10,574 | 0.6 | 8,602 | 0.4 | (1,972) | 81 |
Profit before income taxes | 75,686 | 4.0 | 148,395 | 6.9 | 72,709 | 196 |
Income taxes | 24,284 | 1.3 | 34,470 | 1.6 | 10,186 | 142 |
Net profit | 51,402 | 2.7 | 113,925 | 5.3 | 62,523 | 222 |
Net profit attributable to: |
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Mitsubishi Electric Corp.stockholders | 48,231 | 2.5 | 104,836 | 4.9 | 56,605 | 217 |
Non-controlling interests | 3,171 | 0.2 | 9,089 | 0.4 | 5,918 | 287 |
(Condensed Quarterly Consolidated Statement of Comprehensive Income)
(In millions of yen)
| FY '21 1st half (A) (Apr. 1, 2020 -Sept. 30, 2020) | FY '22 1st half (B) (Apr. 1, 2021 - Sept. 30, 2021) | B - A |
Net profit | 51,402 | 113,925 | 62,523 |
(Other comprehensive income (loss),net of tax) |
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Items that will not be reclassified tonet profit |
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Changes in fair value of financial assets measured at fair value through other comprehensive income | 29,056 | 11,650 | (17,406) |
Share of other comprehensive income of investments accounted for using the equity method | 581 | 577 | (4) |
Subtotal | 29,637 | 12,227 | (17,410) |
Items that may be reclassified to net profit |
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Exchange differences on translating foreign operations | 5,343 | (9,244) | (14,587) |
Net changes in the fair value of cash flow hedges | 66 | (57) | (123) |
Share of other comprehensive income of investments accounted for using the equity method | (1,429) | 4,098 | 5,527 |
Subtotal | 3,980 | (5,203) | (9,183) |
Total other comprehensive income (loss) | 33,617 | 7,024 | (26,593) |
Comprehensive income | 85,019 | 120,949 | 35,930 |
Comprehensive income attributable to: |
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Mitsubishi Electric Corp. stockholders | 81,602 | 112,559 | 30,957 |
Non-controlling interests | 3,417 | 8,390 | 4,973 |
Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income (Second Quarter, Fiscal 2022)
(Condensed Quarterly Consolidated Statement of Profit or Loss)
(In millions of yen)
| FY '21 Q2 (Jul. 1, 2020 - Sept. 30, 2020) | FY '22 Q2 (Jul. 1, 2021 - Sept. 30, 2021) |
| |||
(A) | % of total | (B) | % of total | B - A | B/A (%) | |
Revenue | 1,043,873 | 100.0 | 1,071,935 | 100.0 | 28,062 | 103 |
Cost of sales | 764,405 | 73.2 | 766,010 | 71.5 | 1,605 | 100 |
Selling, general and administrative expenses | 237,288 | 22.7 | 251,051 | 23.4 | 13,763 | 106 |
Other profit (loss) | (1,026) | (0.2) | 188 | 0.0 | 1,214 | － |
Operating profit | 41,154 | 3.9 | 55,062 | 5.1 | 13,908 | 134 |
Financial income | 835 | 0.1 | 846 | 0.1 | 11 | 101 |
Financial expenses | 1,173 | 0.0 | 1,534 | 0.1 | 361 | 131 |
Share of profit of investments accounted for using theequity method | 7,761 | 0.7 | 4,508 | 0.4 | (3,253) | 58 |
Profit before income taxes | 48,577 | 4.7 | 58,882 | 5.5 | 10,305 | 121 |
Income taxes | 16,907 | 1.7 | 12,061 | 1.1 | (4,846) | 71 |
Net profit | 31,670 | 3.0 | 46,821 | 4.4 | 15,151 | 148 |
Net profit attributable to: |
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Mitsubishi Electric Corp.stockholders | 30,346 | 2.9 | 43,001 | 4.0 | 12,655 | 142 |
Non-controlling interests | 1,324 | 0.1 | 3,820 | 0.4 | 2,496 | 289 |
(Condensed Quarterly Consolidated Statement of Comprehensive Income)
(In millions of yen)
| FY '21 Q2 (A) (Jul. 1, 2020 - Sept. 30, 2020) | FY '22 Q2 (B) (Jul. 1, 2021 - Sept. 30, 2021) | B - A |
Net profit | 31,670 | 46,821 | 15,151 |
(Other comprehensive income (loss),net of tax) |
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Items that will not be reclassified tonet profit |
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Changes in fair value of financial assets measured at fair value through other comprehensive income | 11,734 | 13,522 | 1,788 |
Share of other comprehensive income of investments accounted for using the equity method | 743 | 639 | (104) |
Subtotal | 12,477 | 14,161 | 1,684 |
Items that may be reclassified to net profit |
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Exchange differences on translating foreign operations | (6,316) | (8,300) | (1,984) |
Net changes in the fair value of cash flow hedges | 16 | (53) | (69) |
Share of other comprehensive income of investments accounted for using the equity method | (1,157) | 1,620 | 2,777 |
Subtotal | (7,457) | (6,733) | 724 |
Total other comprehensive income (loss) | 5,020 | 7,428 | 2,408 |
Comprehensive income | 36,690 | 54,249 | 17,559 |
Comprehensive income attributable to: |
|
|
|
Mitsubishi Electric Corp. stockholders | 36,138 | 51,103 | 14,965 |
Non-controlling interests | 552 | 3,146 | 2,594 |
Condensed Quarterly Consolidated Statement of Financial Position
(In millions of yen)
| FY '21 (A) (ended Mar. 31, 2021) | FY '22 1st half (B) (ended Sept. 30, 2021) | B - A |
(Assets) |
|
|
|
Current assets | 2,846,972 | 2,754,755 | (92,217) |
Cash and cash equivalents | 767,406 | 721,939 | (45,467) |
Trade receivables | 906,831 | 719,128 | (187,703) |
Contract assets | 274,231 | 306,287 | 32,056 |
Inventories | 743,782 | 841,860 | 98,078 |
Other current assets | 154,722 | 165,541 | 10,819 |
Non-current assets | 1,950,949 | 1,956,926 | 5,977 |
Investments accounted for using the equity method | 205,464 | 207,446 | 1,982 |
Other financial assets | 353,624 | 369,505 | 15,881 |
Property, plant and equipment | 857,645 | 855,916 | (1,729) |
Other non-current assets | 534,216 | 524,059 | (10,157) |
Total assets | 4,797,921 | 4,711,681 | (86,240) |
(Liabilities) |
|
|
|
Current liabilities | 1,505,381 | 1,401,190 | (104,191) |
Bonds, borrowings and lease liabilities | 152,657 | 151,116 | (1,541) |
Trade payables | 541,774 | 514,629 | (27,145) |
Other current liabilities | 810,950 | 735,445 | (75,505) |
Non-current liabilities | 421,929 | 400,753 | (21,176) |
Bonds, borrowings and lease liabilities | 212,774 | 188,632 | (24,142) |
Net defined benefit liabilities | 161,388 | 166,535 | 5,147 |
Other non-current liabilities | 47,767 | 45,586 | (2,181) |
Total liabilities | 1,927,310 | 1,801,943 | (125,367) |
(Equity) |
|
|
|
Mitsubishi Electric Corp. stockholders' equity | 2,754,293 | 2,794,781 | 40,488 |
Common stock | 175,820 | 175,820 | － |
Capital surplus | 202,777 | 201,959 | (818) |
Retained earnings | 2,266,490 | 2,315,725 | 49,235 |
Accumulated other comprehensive income (loss) | 111,801 | 119,309 | 7,508 |
Treasury stock, at cost | (2,595) | (18,032) | (15,437) |
Non-controlling interests | 116,318 | 114,957 | (1,361) |
Total equity | 2,870,611 | 2,909,738 | 39,127 |
Total liabilities and equity | 4,797,921 | 4,711,681 | (86,240) |
Bonds, borrowings and lease liabilities | 365,431 | 339,748 | (25,683) |
Excluding lease liabilities | 248,897 | 226,744 | (22,153) |
|
|
|
|
Accumulated other comprehensive income (loss): |
|
|
|
Exchange differences on translating foreign operations | 17,866 | 13,283 | (4,583) |
Financial assets measured at fair value through other comprehensive income | 93,893 | 106,034 | 12,141 |
Net changes in the fair value of cash flow hedges | 42 | (8) | (50) |
Condensed Quarterly Consolidated Statement of Changes in Equity
FY '21 1st Half (Apr. 1, 2020 - Sept. 30, 2020)
(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 beginning of period | 175,820 | 202,832 | 2,071,817 | (17,802) | (2,924) | 2,429,743 | 109,116 | 2,538,859 |
Comprehensive income |
|
|
|
|
|
|
|
|
Net profit |
|
| 48,231 |
|
| 48,231 | 3,171 | 51,402 |
Other comprehensive income (loss), net of tax |
|
|
| 33,371 |
| 33,371 | 246 | 33,617 |
Comprehensive income | － | － | 48,231 | 33,371 | － | 81,602 | 3,417 | 85,019 |
Reclassification to retained earnings |
|
| (4,377) | 4,377 |
| － |
| － |
Dividends |
|
| (55,816) |
|
| (55,816) | (5,356) | (61,172) |
Purchase of treasury stock |
|
|
|
| (366) | (366) |
| (366) |
Disposal of treasury stock |
| (696) |
|
| 696 | 0 |
| 0 |
Transactions with non-controlling interests and others |
| 134 |
|
|
| 134 | 98 | 232 |
Balance at end of period | 175,820 | 202,270 | 2,059,855 | 19,946 | (2,594) | 2,455,297 | 107,275 | 2,562,572 |
FY '22 1st Half (Apr. 1, 2021 - Sept. 30, 2021)
(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 beginning of period | 175,820 | 202,777 | 2,266,490 | 111,801 | (2,595) | 2,754,293 | 116,318 | 2,870,611 |
Comprehensive income |
|
|
|
|
|
|
|
|
Net profit |
|
| 104,836 |
|
| 104,836 | 9,089 | 113,925 |
Other comprehensive income (loss), net of tax |
|
|
| 7,723 |
| 7,723 | (699) | 7,024 |
Comprehensive income | － | － | 104,836 | 7,723 | － | 112,559 | 8,390 | 120,949 |
Reclassification to retained earnings |
|
| 215 | (215) |
| － |
| － |
Dividends |
|
| (55,816) |
|
| (55,816) | (9,111) | (64,927) |
Purchase of treasury stock |
|
|
|
| (16,490) | (16,490) |
| (16,490) |
Disposal of treasury stock |
| (1,053) |
|
| 1,053 | 0 |
| 0 |
Transactions with non-controlling interests and others |
| 235 |
|
|
| 235 | (640) | (405) |
Balance at end of period | 175,820 | 201,959 | 2,315,725 | 119,309 | (18,032) | 2,794,781 | 114,957 | 2,909,738 |
Condensed Quarterly Consolidated Statement of Cash Flows
(In millions of yen)
|
| FY '21 1st half (Apr. 1, 2020 - Sept. 30, 2020) (A) | FY '22 1st half (Apr. 1, 2021 - Sept. 30, 2021) (B) | B - A |
I | Cash flows from operating activities |
|
|
|
1 | Net profit | 51,402 | 113,925 | 62,523 |
2 | Adjustments to cash flows from operating activities |
|
|
|
| (1) Depreciation, amortization and other | 103,412 | 96,331 | (7,081) |
| (2) Decrease in trade receivables | 192,653 | 188,462 | (4,191) |
| (3) Decrease (increase) in contract assets | 21,994 | (32,207) | (54,201) |
| (4) Decrease (increase) in inventories | (19,761) | (99,262) | (79,501) |
| (5) Increase (decrease) in trade payables | (89,907) | (26,960) | 62,947 |
| (6) Others, net | (2,848) | (75,370) | (72,522) |
| Cash flows from operating activities | 256,945 | 164,919 | (92,026) |
|
|
|
|
|
II | Cash flows from investing activities |
|
|
|
1 | Purchase of property, plant and equipment | (92,502) | (65,419) | 27,083 |
2 | Proceeds from sale of property, plant and equipment | 2,167 | 1,126 | (1,041) |
3 | Purchase of investment securities and others (net of cash acquired) | (12,214) | (9,210) | 3,004 |
4 | Proceeds from sale of investment securities and others (net of cash disposed) | 4,046 | 3,953 | (93) |
5 | Others, net | (9,354) | (9,842) | (488) |
| Cash flows from investing activities | (107,857) | (79,392) | 28,465 |
|
|
|
|
|
I + II | Free cash flow | 149,088 | 85,527 | (63,561) |
|
|
|
|
|
III | Cash flows from financing activities |
|
|
|
1 | Proceeds and repayments of bonds and long-term borrowings | (10,164) | (20,359) | (10,195) |
2 | Increase (decrease) in short-term borrowings, net | 54,663 | (3,322) | (57,985) |
3 | Repayments of lease liabilities | (27,760) | (27,643) | 117 |
4 | Dividends paid | (55,816) | (55,816) | 0 |
5 | Purchase of treasury stock | (366) | (16,490) | (16,124) |
6 | Disposal of treasury stock | 0 | 0 | (0) |
7 | Others, net | (6,040) | (8,885) | (2,845) |
| Cash flows from financing activities | (45,483) | (132,515) | (87,032) |
|
|
|
|
|
IV | Effect of exchange rate changes on cash and cash equivalents | 1,764 | 1,521 | (243) |
V | Net increase (decrease) in cash and cash equivalents | 105,369 | (45,467) | (150,836) |
VI | Cash and cash equivalents at beginning of period | 537,559 | 767,406 | 229,847 |
VII | Cash and cash equivalents at end of period | 642,928 | 721,939 | 79,011 |
Consolidated Segment Information (First Half, Fiscal 2022)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment | FY'21 1st half (Apr. 1, 2020 - Sept. 30, 2020) | FY'22 1st half (Apr. 1, 2021 - Sept. 30, 2021) | C - A | D - B | C/A (%) | ||
Revenue (A) | Operating profit (B) | Revenue(C) | Operating profit (D) | ||||
Energy and Electric Systems | 564,731 | 26,277 | 560,884 | 20,670 | (3,847) | (5,607) | 99 |
Industrial Automation Systems | 548,607 | 1,766 | 692,161 | 55,558 | 143,554 | 53,792 | 126 |
Information and Communication Systems | 165,545 | 4,866 | 154,189 | 4,625 | (11,356) | (241) | 93 |
Electronic Devices | 100,583 | 5,802 | 120,492 | 5,108 | 19,909 | (694) | 120 |
Home Appliances | 503,731 | 35,588 | 595,651 | 58,394 | 91,920 | 22,806 | 118 |
Others | 272,432 | 1,971 | 319,167 | 8,211 | 46,735 | 6,240 | 117 |
Subtotal | 2,155,629 | 76,270 | 2,442,544 | 152,566 | 286,915 | 76,296 | 113 |
Eliminations and corporate | (253,605) | (14,916) | (304,167) | (14,736) | (50,562) | 180 | － |
Consolidated Total | 1,902,024 | 61,354 | 2,138,377 | 137,830 | 236,353 | 76,476 | 112 |
*Notes: Inter-segment revenue are included in the above chart.
2. Revenue by Location of Customers
(In millions of yen)
Location of Customers | FY '21 1st half (Apr. 1, 2020 - Sept. 30, 2020) | FY '22 1st half (Apr. 1, 2021 - Sept. 30, 2021) | B - A | B/A (%) | |||||
Revenue (A) | % of total revenue | Revenue (B) | % of total revenue | ||||||
| Japan | 1,080,338 | 56.8 | 1,083,544 | 50.7 | 3,206 | 100 | ||
|
| North America | 175,435 | 9.2 | 227,473 | 10.7 | 52,038 | 130 | |
|
|
| China | 234,923 | 12.4 | 293,882 | 13.7 | 58,959 | 125 |
|
|
| Other than China | 198,811 | 10.4 | 245,763 | 11.5 | 46,952 | 124 |
|
| Asia (excluding Japan) | 433,734 | 22.8 | 539,645 | 25.2 | 105,911 | 124 | |
|
| Europe | 184,272 | 9.7 | 255,107 | 11.9 | 70,835 | 138 | |
|
| Others | 28,245 | 1.5 | 32,608 | 1.5 | 4,363 | 115 | |
| Total overseas revenue | 821,686 | 43.2 | 1,054,833 | 49.3 | 233,147 | 128 | ||
Consolidated total | 1,902,024 | 100.0 | 2,138,377 | 100.0 | 236,353 | 112 | |||
Consolidated Segment Information (Second Quarter, Fiscal 2022)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment | FY '21 Q2 (Jul. 1, 2020 - Sept. 30, 2020) | FY '22 Q2 (Jul. 1, 2021 - Sept. 30, 2021) | C - A | D - B | C/A (%) | ||
Revenue (A) | Operating profit (B) | Revenue(C) | Operating profit (D) | ||||
Energy and Electric Systems | 298,976 | 7,631 | 297,244 | 8,807 | (1,732) | 1,176 | 99 |
Industrial Automation Systems | 312,376 | 5,180 | 335,627 | 20,531 | 23,251 | 15,351 | 107 |
Information and Communication Systems | 102,260 | 5,429 | 90,086 | 4,625 | (12,174) | (804) | 88 |
Electronic Devices | 50,872 | 2,712 | 60,105 | 1,839 | 9,233 | (873) | 118 |
Home Appliances | 266,333 | 22,036 | 280,299 | 19,091 | 13,966 | (2,945) | 105 |
Others | 147,008 | 3,324 | 165,714 | 4,813 | 18,706 | 1,489 | 113 |
Subtotal | 1,177,825 | 46,312 | 1,229,075 | 59,706 | 51,250 | 13,394 | 104 |
Eliminations and corporate | (133,952) | (5,158) | (157,140) | (4,644) | (23,188) | 514 | － |
Consolidated Total | 1,043,873 | 41,154 | 1,071,935 | 55,062 | 28,062 | 13,908 | 103 |
*Notes: Inter-segment revenue are included in the above chart.
2. Revenue by Location of Customers
(In millions of yen)
Location of Customers | FY '21 Q2 (Jul. 1, 2020 - Sept. 30, 2020) | FY '22 Q2 (Jul. 1, 2021 - Sept. 30, 2021) | B - A | B/A (%) | |||||
Revenue (A) | % of total revenue | Revenue (B) | % of total revenue | ||||||
| Japan | 600,656 | 57.5 | 565,345 | 52.7 | (35,311) | 94 | ||
|
| North America | 101,081 | 9.7 | 110,018 | 10.3 | 8,937 | 109 | |
|
|
| China | 118,680 | 11.4 | 138,547 | 12.9 | 19,867 | 117 |
|
|
| Other than China | 108,916 | 10.4 | 124,088 | 11.6 | 15,172 | 114 |
|
| Asia (excluding Japan) | 227,596 | 21.8 | 262,635 | 24.5 | 35,039 | 115 | |
|
| Europe | 98,685 | 9.5 | 117,502 | 11.0 | 18,817 | 119 | |
|
| Others | 15,855 | 1.5 | 16,435 | 1.5 | 580 | 104 | |
| Total overseas revenue | 443,217 | 42.5 | 506,590 | 47.3 | 63,373 | 114 | ||
Consolidated total | 1,043,873 | 100.0 | 1,071,935 | 100.0 | 28,062 | 103 | |||
Notes to the Condensed Consolidated Financial Statements
(Notes regarding the going concern assumption)
Not applicable
Cautionary Statement
While the statements herein including the forecast of the Mitsubishi Electric Group are based on assumptions the Group considers to be reasonable under the circumstances on the date of announcement, actual results may differ significantly from forecasts.
Such factors materially affecting the expectations expressed herein shall include but are not limited to the following:
(1) Any change in worldwide economic and social conditions, as well as laws, regulations, taxation and other legislation
(2) Changes in foreign currency exchange rates, especially JPY/U.S. dollar rates
(3) Changes in stock markets, especially in Japan
(4) Changes in balance of supply and demand of products that may affect prices and volume, as well as material procurement conditions
(5) Changes in the ability to fund raising, especially in Japan
(6) Uncertainties relating to patents, licenses and other intellectual property, including disputes involving patent infringement
(7) New environmental regulations or the arising of environmental issues
(8) Defects in products or services
(9) Litigation and legal proceedings brought and contemplated against the Company or its subsidiaries and affiliates that may adversely affect operations or finances
(10) Technological change, the development of products using new technology, manufacturing and time-to-market
(11) Business restructuring
(12) Incidents related to information security
(13) Large-scale disasters including earthquakes, typhoons, tsunami, fires and others
(14) Social or political upheaval caused by terrorism, war, pandemics, or other factors
(15) Important matters related to the directors and executive officers, major shareholders and affiliated companies of Mitsubishi Electric Corporation
###
About Mitsubishi Electric Corporation
With 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. Mitsubishi Electric enriches society with technology in the spirit of its "Changes for the Better." The company recorded a revenue of 4,191.4 billion yen (U.S.$ 37.8 billion*) in the fiscal year ended March 31, 2021. For more information, please visit www.MitsubishiElectric.com
*U.S. dollar amounts are translated from yen at the rate of \111=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2021Click on, or paste the following link into your web browser, to view the associated PDF document:http://www.rns-pdf.londonstockexchange.com/rns/5483Q_1-2021-10-28.pdf