MEL.L Regulatory News (MEL)

29 Oct 2007 08:51

Mitsubishi Electric Corporation29 October 2007 MITSUBISHI ELECTRIC CORPORATION PUBLIC RELATIONS DEPARTMENT 7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo, 100-8310 Japan FOR IMMEDIATE RELEASE No. 2419 Investor Relations Inquiries: Media Contact:Corporate Finance Division Yurika FujimotoMitsubishi Electric Corporation Public Relations DivisionTel: +81-3-3218-2391 Mitsubishi Electric CorporationCad.Irg@rk.MitsubishiElectric.co.jp Tel: +81-3-3218-3380 prd.gnews@nk.MitsubishiElectric.co.jp http://global.mitsubishielectric.com/news/ MITSUBISHI ELECTRIC ANNOUNCES CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL HALF-YEAR RESULTS FOR THE PERIOD OF APRIL 1, 2007- SEPTEMBER 30, 2007 Tokyo, October 29, 2007 - Mitsubishi Electric Corporation (President and CEO:Setsuhiro Shimomura) announced today its half-year financial results for theperiod of April 1, 2007- September 30, 2007 (fiscal 2008). Consolidated Financial ResultsNet sales: 1,889.7 billion yen (5% increase from the same period last year)Operating income: 129.1 billion yen (38% increase from the same period last year)Income before income taxes: 129.6 billion yen (57% increase from the same period last year)Net income: 91.5 billion yen (62% increase from the same period last year) Non-consolidated Financial ResultsNet sales: 1,135.2 billion yen (5% increase from the same period last year)Operating income: 72.8 billion yen (29% increase from the same period last year)Ordinary profit: 84.1 billion yen (33% increase from the same period last year)Net income: 57.9 billion yen (88% increase from the same period last year) Management conditions during the first half of fiscal 2008 saw general steadydevelopment of the global economy mainly in China and Europe despite a strongersense of stagnation in the U.S.A. While the yen saw continued weakness againstother major currencies, the Japanese economy as well saw general steadydevelopment based mainly on overseas demand, despite a weakness in personalconsumption. Under these circumstances, consolidated net sales for this interim period grew5% to 1,889.7 billion yen compared to the same period of the previous fiscalyear, with increased sales in the Energy and Electric Systems, the IndustrialAutomation Systems, the Electronic Devices and the Home Appliances segments.Consolidated operating income increased 38% to 129.1 billion yen compared to thesame period of the previous fiscal year due to increased profit in the Energyand Electric Systems, the Industrial Automation Systems and the Home Appliancessegments. CONSOLIDATED FINANCIAL RESULTS BY BUSINESS SEGMENT Energy and Electric SystemsTotal sales: 440.2 billion yen (13% increase from the same period last year)Operating income: 23.4 billion yen (16.7 billion yen increase from the same period last year) The social infrastructure systems business saw increases in both orders andsales compared to the same period of the previous fiscal year due to increasesin overseas electric transmission and distribution related business as well asdomestic power generation business in addition to expansion both domesticallyand abroad in electric equipment for rolling stock. The building systems business experienced increases in both orders and salescompared to the same period of the previous fiscal year due to increases indomestic elevators and escalators for the retail industry and railroad companiesas well as increases in initiatives in China and the Middle East. As a result, total sales for this segment increased 13% from the same period ofthe previous fiscal year. Operating income increased by 16.7 billion yen fromthe same period of the previous fiscal year due to increased sales. Industrial Automation SystemsTotal sales: 491.7 billion yen (5% increase from the same period last year)Operating income: 66.8 billion yen (1.6 billion yen increase from the same period last year) The factory automation systems business saw little change in sales compared tothe same period of the previous fiscal year, upheld by buoyant domestic demandfor industrial machinery and active investments in China despite decreases inorders for domestic and overseas flat panel display related investments, etc. The automotive equipment business saw an increase in both orders and salescompared to the same period of the previous fiscal year due to buoyantdevelopment in global production of Japanese multinational automotivemanufacturers. As a result, total sales for this segment increased by 5% compared to the sameperiod of the previous fiscal year. Operating income increased by 1.6 billionyen compared to the same period of the previous fiscal year due to increases insales, etc. Information and Communication SystemsTotal sales: 282.0 billion yen (7% decrease from the same period last year)Operating income: 0.5 billion yen (4.7 billion yen decrease from the same period last year) The telecommunications equipment business saw decreases in both orders and salescompared to the same period of the previous fiscal year due to a decrease inmobile handsets. The information systems and services business saw an increase in sales from thesame period of the previous fiscal year due to expansion of our systemintegration business. The electronic systems business saw an increase in both orders and salescompared to the same period of the previous fiscal year due to expansion of oursatellite related business. As a result, total sales for this segment decreased 7% compared to the sameperiod of the previous fiscal year. Operating income decreased by 4.7 billionyen compared to the same period of the previous fiscal year due to decreased insales, etc. Electronic DevicesTotal sales: 95.1 billion yen (4% increase from the same period last year)Operating income: 6.0 billion yen (1.1 billion yen decrease from the same period last year) The semiconductors business saw an increase in both orders and sales compared tothe same period of the previous fiscal year due to increases in power modules for consumer use mainly in air conditioners and industrial use as well as power amplifiers for mobile handsets, etc. The liquid crystal business saw a decrease in both orders and sales compared tothe same period of the previous fiscal year due to a decrease in small-sizedproducts for consumer use, including mobile handsets, etc., despite an increasein medium-sized products for industrial machines. As a result, total sales for the segment increased 4% compared to the sameperiod of the previous fiscal year. Operating income decreased by 1.1 billionyen compared to the same period of the previous fiscal year due to decreasedsales in the liquid crystal business, etc. Home AppliancesTotal sales: 516.4 billion yen (11% increase from the same period last year)Operating income: 38.4 billion yen (22.9 billion yen increase from the same period last year) The home appliances business saw an increase in sales of 11% compared to thesame period of the previous fiscal year due to increased sales of electric hotwater supply systems and other appliances for use in all electric powered homesfor the domestic market as well as air conditioners and solar power generationsystems for the overseas market. Operating income increased by 22.9 billion yen compared to the same period of the previous fiscal year due to increased sales, etc. OthersTotal sales: 317.1 billion yen (5% increase from the same period last year)Operating income: 7.0 billion yen (0.5 billion yen increase from the same period last year) Sales increased 5% compared to the same period of the previous fiscal yearmainly in our materials procurement and engineering affiliated companies, etc. Operating income increased by 0.5 billion yen compared to the same period of theprevious fiscal year due to increased sales, etc. Fundamental dividend distribution policyOur fundamental policy is to comprehensively promote improvement in shareholderprofits from the viewpoint of appropriate profit distribution commensurate withearning performance of its respective fiscal year as well as the aspect ofstrengthening our financial standing through our internal reserves, with theultimate goal of improving corporate value. Dividend for the first half of fiscal 2008With our financial standing and business performance continuing to improve, wewill pay an interim retained earnings dividend of 6 yen per share for fiscal2008. Payment of interim dividends will start on December 4, 2007. The year-endretained earnings dividend for fiscal 2008 is still undecided. cf. Fiscal 2007 dividend was 10 yen per share (interim dividend of 4 yen pershare and a year-end dividend of 6 yen per share) FINANCIAL CONDITION (CONSOLIDATED BASIS) Assets, Liabilities, and Shareholders' Equity The company's total assets declined from the end of the previous fiscal year by27.3 billion yen to 3,424.9 billion yen. While cash and cash equivalentsincreased by 14.3 billion yen, and inventory increased by 73.0 billion yen dueto progress in work-in-processes, etc., accounts receivables decreased by 107.3billion yen due to accelerated collection of our credits. The balance of outstanding debts fell by 56.3 billion yen from the end of theprevious fiscal year to 584.7 billion yen, with a reduction of its ratio tototal assets down to 17.1% (an improvement by 1.5 point compared to the end ofthe previous fiscal year). Trade payables also decreased by 51.4 billion yen. Shareholders' equity increased by 58.2 billion yen compared to the previousfiscal year to 1,117.4 billion, with an improvement in ratio of shareholders'equity to total assets of 1.9 points compared to the previous fiscal year to32.6 percent. While accumulated other comprehensive income decreased by 20.3billion yen due to a decline in stock prices, etc, retained earnings increasedowing to a 91.5 billion yen net income despite a dividend payment of 12.8billion yen. Cash FlowCash flows from operating activities decreased by 21.4 billion yen compared tothe same period of the previous fiscal year to 127.3 billion yen (inflow). Cash flows from investing activities decreased by 26.9 billion yen compared tothe same period of the previous fiscal year to 49.1 billion yen (outflow) due todecreases in loan receivables, etc. Consequently, free cash flow reachedrevenues of 78.1 billion yen. Cash flows from financing activities were 65.7 billion yen (outflow) due todividend payment and debt repayment. FORECAST FOR FISCAL 2008 (ending March 31, 2008) The global economy is expected to slow down slightly due to a persistent senseof stagnation in the U.S. economy, etc., and the domestic economy is alsoexpected to show a gradual slow down. Management environments will notnecessarily be optimistic either with concerns of increasing and high-persistentpetroleum and material prices, as well as risks from stronger yen and sub primeloan issues spreading throughout the actual economy, etc. Under these circumstances, the Mitsubishi Electric Group will continue toincrease and strengthen profitability in each business segment. In addition, weare committed to implementing various company wide measures toward improvingbusiness performance and financial standing. The growth strategies will besteadfastly adhered to in the interest of maintaining sustainable growth. With the Home Appliances segment's buoyancy in air conditioners overseas andexpansions in the Industrial Automation Systems and the Energy and ElectricSystems segments, our business performance is expected to exceed our previousforecast. Therefore, we will modify the consolidated and non-consolidatedearnings forecast for fiscal 2008 from the announcement on April 27, 2007. Consolidated earnings forecast for fiscal 2008 (previous forecast)Net sales: 3,970.0 billion yen (3,940.0 billion yen) (3% increase from the same period last year)Operating income: 233.0 billion yen (200.0 billion yen) (No changes from the same period last year)Income before income taxes: 210.0 billion yen (185.0 billion yen) (14% increase from the same period last year) Net income: 148.0 billion yen (125.0 billion yen) (20% increase from the same period last year) Non-consolidated earnings forecast for fiscal 2008 (previous forecast)Net sales: 2,430.0 billion yen (2,430.0 billion yen) (3% increase from the same period last year)Operating income: 120.0 billion yen (110.0 billion yen) (6% decrease from the same period last year)Ordinary profit: 127.0 billion yen (105.0 billion yen) (3% decrease from the same period last year)Net income: 86.0 billion yen (75.0 billion yen) (106% increase from the same period last year) MANAGEMENT POLICY Fundamental Management Policy Based on its corporate statement "Changes for the Better", the MitsubishiElectric Group hopes to build a better tomorrow by contributing to the creationof new societies, industries and lifestyles. Keeping this corporate approach in mind, Mitsubishi Electric will establish asolid business foundation and implement sustainable growth through a three pointbalanced management of "Growth," "Profitability & Efficiency" and "Soundness". Mitsubishi Electric will also work to further enhance its corporate value bybecoming a conglomerate of highly competitive electric-electronic businesseswith a synergistic unity, capable of responding to the expectations ofcustomers, shareholders, and all of our stakeholders. Management Targets The Mitsubishi Electric Group has established three management targets that itcontinuously aims to achieve: an operating income ratio of 5% or more, ROE of10% or more, and a interest-bearing debt ratio of 15% or less. Management Target Ratio of operating income to net sales 5% or more ROE 10% or more Ratio of interest-bearing debt to total assets 15% or less Corporate Agenda Based on its three point balanced management of "Growth," "Profitability &Efficiency" and "Soundness", the Mitsubishi Electric Group will continuouslyimprove by strengthening quality, cost competitiveness, and intellectualproperty as well as productivity, R&D, and sales capabilities. We will alsostrengthen our two-tiered growth strategy VI(1) strategy, 'making strongbusinesses stronger', and AD(2) strategy, 'reinforcing solutions businessescentered on strong businesses'. While also restructuring business segments inresponse to changing business environments, we strive to create a managementbase that will continue to strengthen and improve our business performance. Specifically, with an objective of strengthening our integrated "Craftsmanship",we will strengthen our development and productivity in software and hardware,and continue to streamline our productivity with measures like Just In Timeproduction. From the very first stages of design and development, we willpromote cost reduction activities that respond to material price hikes and exertquality consciousness. We will utilize human resources to enhancecompetitiveness, and engage in activities such as streamlining our humanresources structure from a mid- and long-term perspective. We will improve ourfinancial standing by further pursuing such measures as inventory reduction.Also, we will further promote 'Global Integration' to build an optimal businessstructure both in global terms and for the entire corporate Group. In businessdevelopment in overseas markets, we will pay intensive attention on managingassociated risks. Finally, we will enhance our operational structure to managevarious businesses, through integration and coordination among various aspects,including research, development, procurement, production, sales and servicesetc. In addition, we will be committed to enhance Corporate Social Responsibility(CSR) efforts based on the Corporate Mission(3) and Seven Guiding Principles(4).Especially, in terms of legal and ethical compliances, we will enrich ourinternal educational efforts and intensively implement internal controlmeasures, as a priority task over the entire consolidated group of MitsubishiElectric Corporation. We will also promote environmental initiatives to preventglobal warming, create a recycling-based society and etc. Steadily executing the above strategy, the Mitsubishi Electric Group will work to further enhance its corporate value. (1) VI, the first two letters of 'Victory' (2) AD, the first two letters of 'Advance'(3) Corporate Mission: The Mitsubishi Electric Group will continually improve its technologies and services through creativity, and at the same time contribute to society. (4) These principles are: Trust. Establish relationships with all stakeholders based on strong mutual trust and respect, Quality. Provide the best products and services with unsurpassed quality, Technology. Pioneer new markets by promoting research and development, Citizenship. As a global player, contribute to the development of communities and society as a whole, Ethics. Honor high ethical standards in all endeavors, Environment. Respect nature, and strive to protect and improve the global environment, Growth. Assure fair earnings to build a foundation for future growth. CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS 1. CONSOLIDATED HALF-YEAR RESULTS (In billions of yen except where noted) FY'08 1st half FY'07 1st half A/B FY'07 (A) (B) (%) Net sales 1,889.7 1,791.9 105 3,855.7Operating income 129.1 93.6 138 233.0Income before income taxes 129.6 82.4 157 184.7Net income 91.5 56.4 162 123.0Basic net income per share 42.67yen 26.32yen 162 57.34 Note: 1) Consolidated financial charts made according to U.S. GAAP. FY'08 1st half: Apr. 1, 2007 - Sept. 30, 2007 2) Company has 148 consolidated subsidiaries. FY'07 1st half: Apr. 1, 2006 - Sept. 30, 2006 FY'07: Apr. 1, 2006 - Mar. 31, 2007 2. NON-CONSOLIDATED HALF-YEAR RESULTS (In billions of yen except where noted) FY'08 1st half FY'07 1st half A/B FY'07 (A) (B) (%) Net sales 1,135.2 1,082.0 105 2,363.6Operating income 72.8 56.4 129 127.3Ordinary profit 84.1 63.5 133 131.4Net income 57.9 30.8 188 41.6 Annual dividend 10 yen 6 yen 4 yen 150 (Term-end Dividend per share (Interim dividend) (Interim biannual dividend) dividend 6 yen)Net income 27.00 yen 14.37 yen 188 19.42 yenper share FY'08 1st half: Apr. 1, 2007 - Sept. 30, 2007 FY'07 1st half: Apr. 1, 2006 - Sept. 30, 2006 FY'07: Apr. 1, 2006 - Mar. 31, 2007 CONSOLIDATED PROFIT AND LOSS STATEMENT (In millions of yen) FY'08 FY'07 FY'07 1st half 1st half % of % of A/B % of (A) total (B) total A-B (%) total Net sales 1,889,745 100.0 1,791,982 100.0 97,763 105 3,855,745 100.0Cost of sales 1,360,605 72.0 1,311,842 73.2 48,763 104 2,831,309 73.5Selling, generaland administrative 399,948 21.2 386,534 21.6 13,414 103 791,434 20.5expensesOperating income 129,192 6.8 93,606 5.2 35,586 138 233,002 6.0Other income 13,988 0.8 16,561 0.9 (2,573) 84 40,745 1.1Interest and dividends 7,713 0.4 6,325 0.4 1,388 122 12,281 0.3Other 6,275 0.4 10,236 0.5 (3,961) 61 28,464 0.8Other expenses 13,496 0.7 27,693 1.5 (14,197) 49 88,971 2.3Interest 4,422 0.2 5,076 0.3 (654) 87 9,375 0.2Other 9,074 0.5 22,617 1.2 (13,543) 40 79,596 2.1Income before 129,684 6.9 82,474 4.6 47,210 157 184,776 4.8income taxesIncome taxes 45,440 2.5 33,650 1.8 11,790 135 80,203 2.1Equity in earningsof affiliated 7,342 0.4 7,668 0.4 (326) 96 18,507 0.5companies Net income 91,586 4.8 56,492 3.2 35,094 162 123,080 3.2 FY'08 1st half: Apr. 1, 2007 - Sept. 30, 2007 FY'07 1st half: Apr. 1, 2006 - Sept. 30, 2006 FY'07: Apr. 1, 2006 - Mar. 31, 2007 CONSOLIDATED BALANCE SHEETS (In millions of yen) FY'08 FY'07 1st half (A) (B) A-B (ending Sept. (ending March 30, 2007) 31, 2007) (Assets)Current assets 1,999,238 2,050,500 (51,262)Cash and cash equivalents 357,007 342,640 14,367Short-term investments 5,500 16,258 (10,758)Trade receivables 784,507 891,271 (10,764)Inventories 593,292 520,238 73,054Prepaid expenses and other current assets 258,932 280,093 (21,161)Long-term trade receivables 3,120 3,711 (591)Investments 585,126 571,458 13,668Net property, plant and equipment 609,475 605,285 4,190Other assets 227,955 221,277 6,678Total assets 3,424,914 3,452,231 (27,317) (Liabilities and shareholders' equity)Current liabilities 1,477,313 1,529,838 (52,525)Bank loans and current portion oflong-term debt 235,021 253,141 (18,120)Trade Payables 688,133 739,585 (51,452)Other current liabilities 554,459 537,112 17,047Long-term debt 349,754 387,941 (38,187)Retirement and severance benefits 362,632 360,713 1,919Other fixed liabilities 54,141 54,169 (28)Minority interests 63,588 60,361 3,227Shareholders' equity 1,117,486 1,059,209 58,277Common stock 175,820 175,820 -Capital surplus 210,891 210,910 (19)Retained earnings 710,710 632,003 78,707Accumulated other comprehensive income(loss) 20,542 40,932 (20,390)Treasury stock at cost (477) (456) (21)Total liabilities and shareholders' equity 3,424,914 3,452,231 (27,317)Balance of Debts 584,775 641,082 (56,307) Accumulated other comprehensive income (loss):Foreign currency translation adjustments 34,579 32,088 2,491Pension liability adjustments (69,192) (59,723) (9,469)Unrealized gains on securities 55,184 68,578 (13,394) Unrealized gains (losses) on derivative (29) (11) (18)instruments CONSOLIDATED CASH FLOW STATEMENT (In millions of yen) FY'08 FY'07 A/B FY'07 1st half 1st half (A) (B) (%) I Cash flows from operating activities 1 Net income 91,586 56,492 35,094 123,0802 Adjustments to reconcile net income to net cash provided by operating activities (1) Depreciation of tangible fixed assets and other 59,159 67,913 (8,754) 141,514 (2) Decrease in deferred income taxes 1,957 4,502 (2,545) 9,553 (3) Decrease (increase) in trade receivables 110,972 105,976 4,996 (35,474) (4) Decrease (increase) in inventories (70,410) (48,916) (21,494) (15,954) (5) Decrease in prepaid expenses and other assets 7,266 11,708 (4,442) 964 (6) Increase (decrease) in trade payables (53,111) (62,820) 9,709 19,252 (7) Increase (decrease) in other liabilities (2,917) 15,210 (18,127) 44,382 (8) Other, net (17,199) (1,327) (15,872) (12,687) Net cash provided by operating activities 127,303 148,738 (21,435) 274,630 II Cash flows from investing activities 1 Capital expenditure (63,169) (70,235) 7,066 (140,557)2 Proceeds from sale of property, plant and equipment 1,759 3,025 (1,266) 4,7823 Purchase of short-term investments and investment securities (16,292) (15,186) (1,106) (24,115)4 Proceeds from sale of short-term investments and investment securities 13,727 15,402 (1,675) 28,1635 Other, net 14,840 (9,082) 23,922 (23,872) Net cash used in investing activities (49,135) (76,076) 26,941 (155,599)I+II Free cash flow 78,168 72,662 5,506 119,031III Cash flows from financing activities 1 Proceeds from long-term debt 1,330 17,100 (15,770) 32,2002 Repayment of long-term debt (9,703) (40,005) 30,302 (154,250)3 Increase (decrease) in bank loans, net (44,463) 331 (44,794) 50,4964 Dividends paid (12,879) (10,731) (2,148) (19,317)5 Purchase of treasury stock (95) (50) (45) (132)6 Reissuance of treasury stock 55 99 (44) 1627 Other, net - 2,107 (2,107) 2,107 Net cash provided by (used in) financing activities (65,755) (31,149) (34,606) (88,734)IV Effect of exchange rate changes on cash and cash equivalents 1,954 1,028 926 7,829V Net increase in cash and cash equivalents 14,367 42,541 (28,174) 38,126VI Cash and cash equivalents at beginning of period 342,640 304,514 38,126 304,514VII Cash and cash equivalents at end of period 357,007 347,055 9,952 342,640 FY '08 1st half: Apr. 1, 2007 - Sept. 30, 2007 FY '07 1st half: Apr. 1, 2006 - Sept. 30, 2006 FY '07: Apr. 1, 2006 - Mar. 31, 2007 CONSOLIDATED SEGMENT INFORMATION 1. Sales and Operating Income by Business Segment (In millions of yen) FY '08 1st half FY '07 1st half FY '07Business Segment AB Operating Operating (%) Operating Sales (A) % of income Sales (B) %of income Sales % of income total total total Energy and Electric 440,295 20.5 23,451 391,305 19.4 6,713 113 951,065 21.9 49,310SystemsIndustrial 491,747 23.0 66,846 466,294 23.1 65,159 105 956,930 22.1 126,227Automation SystemsInformation andCommunication 282,092 13.2 551 304,937 15.1 5,292 93 688,004 15.9 20,803SystemsElectronic Devices 95,194 4.4 6,075 91,637 4.5 7,206 104 185,911 4.3 12,141Home Appliances 516,435 24.1 38,410 464,979 23.0 15,437 111 921,948 21.3 36,644Others 317,139 14.8 7,036 300,817 14.9 6,478 105 630,510 14.5 15,169Subtotal 2,142,902 100.0 142,369 2,019,969 100.0 106,285 106 4,334,368 100.0 260,294Eliminations and (253,157) - (13,177) (227,987) - (12,679) - (478,623) - (27,292)OtherConsolidated Total 1,889,745 - 129,192 1,791,982 - 93,606 105 3,855,745 - 233,002 *Note: Inter-segment sales are included in the above chart. FY '08 1st half: Apr. 1, 2007 - Sept. 30, 2007 FY '07 1st half: Apr. 1, 2006 - Sept. 30, 2006 FY '07: Apr. 1, 2006 - Mar. 31, 2007 2. Sales and Operating Income by Location (In millions of yen) FY '08 1st half FY '07 1st half A/B FY '07Location Sales (A) Operating Sales (B) Operating (%) Sales Operating income income income Japan 1,594,732 93,915 1,539,185 74,369 104 3,346,100 191,274North America 133,669 3,931 134,243 1,970 100 277,555 6,345Asia 286,060 24,165 231,887 14,610 123 482,363 31,057(excluding Japan)Europe 198,448 10,824 143,933 5,715 138 299,401 11,041Others 15,216 423 13,641 476 112 30,819 1,007Subtotal 2,228,125 133,258 2,062,889 97,140 108 4,436,238 240,724Eliminations (338,380) (4,066) (270,907) (3,534) - (580,493) (7,722)Consolidated 1,889,745 129,192 1,791,982 93,606 105 3,855,745 233,002Total *Note: Inter-segment sales are included in the above chart FY '08 1st half: Apr. 1,2007 - Sept. 30, 2007 FY '07 1st half: Apr. 1, 2006 - Sept 30, 2006 FY' 07: Apr. 1, 2006- Mar. 31, 2007 3. Overseas Sales (In millions of yen) FY '08 1st half FY '07 1st half A/B FY '07Location Sales (A) % of total Sales (B) % of total (%) Sales % of total net sales net sales net sales North America 142,662 7.5 145,046 8.1 98 297,360 7.7Asia 275,254 14.6 230,809 12.9 119 470,886 12.2(excluding Japan) Europe 216,991 11.5 165,315 9.2 131 340,121 8.8Others 42,290 2.2 42,665 2.4 99 91,951 2.4Total overseas sales 677,197 35.8 583,835 32.6 116 1,200,318 31.1 FY '08 1st half: Apr. 1, 2007 - Sept. 30, 2007 FY '07 1st half: Apr. 1, 2006- Sept. 30, 2006 FY '07: Apr. 1, 2006 - Mar. 31, 2007 Cautionary Statement The expectation of operating results herein and any associated statement to bemade orally with respect to the Company's current plans, estimates, strategiesand beliefs and any other statements that are not historical facts are forward-looking statements. Words such as "expects", "anticipates", "plans", "believes","scheduled", "estimated", "targeted" along with any variations of these wordsand similar expressions are intended to identify forward-looking statementswhich include but are not limited to projections of revenues, earnings,performance and production. While the statements herein are based on certainassumptions and premises that the Company trusts and considers to be reasonableunder the circumstances to the date of announcement, you are requested to kindlytake note that actual operating results are subject to change due to any of thefactors as contemplated hereunder and/or any additional factor unforeseeable asof the date of this announcement. Such factors materially affecting theexpectations expressed herein shall include but are not limited to thefollowing: (1) Important trends The Mitsubishi Electric Group's operations may be affected by trends in the global economy, social conditions, laws, tax codes, and regulations. (2) Foreign currency exchange rates Fluctuations in foreign currency markets may affect Mitsubishi Electric's sales of exported products and purchases of imported materials that are denominated in U.S. dollars or euros, as well as its Asian production bases' sales of exported products and purchases of imported materials that are denominated in foreign currencies. (3) Stock markets A fall in stock market prices may cause Mitsubishi Electric to record devaluation losses on marketable securities, or cause an increase in retirement benefit obligations in accordance with a decline in the fair value of pension assets. (4) Supply/demand balance for products and procurement conditions for materials and components A decline in prices and shipments due to changes in the supply/demand balance may adversely affect mainly Mitsubishi Electric's Information and Communication Systems, Electronic Devices, and Home Appliances segments. In addition, an increase in material prices due to a worsening of material and component procurement conditions may adversely affect all of Mitsubishi Electric's operations. (5) Fund procurement An increase in interest rates, the yen interest rate in particular, would increase Mitsubishi Electric's interest expenses. (6) Significant patent matters Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses. (7) Environmental matters We may appropriate funds for losses or increase allowances to respond to regulation trends or outbreaks of issues related to the environment. This may impact manufacturing and all corporate activities of the Mitsubishi Electric Group. (8) Quality of products and services We may appropriate funds for losses from defective services or products, and the lowered reputation of the quality of all our products and services may affect the entire Mitsubishi Electric group. (9) Litigation and other legal proceedings The Mitsubishi Electric Group's operations may be affected by lawsuits or other legal proceedings against Mitsubishi Electric, its subsidiaries and/or equity-method affiliated companies. (10) Disruptive changes Disruptive changes in technology, development of products using new technology, timing of production, and market introduction may adversely affect performance mainly in Mitsubishi Electric's Information and Communication Systems, Electronic Devices, and Home Appliances segments. (11) Business restructuring The Mitsubishi Electric Group may record losses due to restructuring measures. (12) Natural disasters The Mitsubishi Electric Group's operations, particularly manufacturing activities, may be affected by the occurrence of earthquakes, typhoons, tsunami, fires and other large-scale disasters. (13) Other significant factors The Mitsubishi Electric Group's operations may be affected by the outbreak of social or political upheaval due to terrorism, war or other factors. About Mitsubishi Electric With over 80 years of experience in providing reliable, high-quality products toboth corporate clients and general consumers all over the world, MitsubishiElectric Corporation (TSE:6503) is a recognized world leader in the manufacture,marketing and sales of electrical and electronic equipment used in informationprocessing and communications, space development and satellite communications,consumer electronics, industrial technology, energy, transportation and buildingequipment. The company recorded consolidated group sales of 3,855.7 billion yen(US$ 32.7 billion*) in the fiscal year ended March 31, 2007. For more information visit http://global.mitsubishielectric.com *At an exchange rate of 118 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2007 ### This information is provided by RNS The company news service from the London Stock Exchange