REG - Mitsubishi Elect. - 3rd Quarter Results
02/02/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220202:nRSB4390Aa&default-theme=true
RNS Number : 4390A Mitsubishi Electric Corporation 02 February 2022
FOR IMMEDIATE RELEASE No. 3483
Investor Relations Inquiries Media Inquiries
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
(mailto:prd.gnews@nk.MitsubishiElectric.co.jp)
www.MitsubishiElectric.com/news/
Mitsubishi Electric Announces Consolidated Financial Results
for the First 9 Months and Third Quarter of Fiscal 2022
TOKYO, February 2, 2022 - Mitsubishi Electric Corporation
(http://www.mitsubishielectric.com/) (TOKYO: 6503) announced today its
consolidated financial results for the first 9 months and third quarter, ended
December 31, 2021, of the current fiscal year ending March 31, 2022 (fiscal
2022).
1. Consolidated First 9 Months Results (April 1, 2021 - December 31, 2021)
Revenue: 3,181.2 billion yen (8% increase from the same period last year)
Operating profit: 190.1 billion yen (38% increase from the same period last year)
Profit before income taxes: 207.2 billion yen (31% increase from the same period last year)
Net profit attributable to Mitsubishi Electric Corp. stockholders: 148.4 billion yen (38% increase from the same period last year)
The economy in the first 9 months of fiscal 2022, from April through December
2021, generally continued to see recovery in the corporate sector in the U.S.,
Europe and Japan. The household sector continued to recover in the U.S. and
Europe. and recently recovered also in Japan owing to normalization of
economic activities after experiencing the downward pressure stemming from the
novel coronavirus diseases (COVID-19). China continued to see recovery in
export and manufacturing, while the paces of recovery in the household sector
slowed down. Overall, economic activities normalized due to the progress in
COVID-19 vaccinations in various countries and regions, and global demand
continued to expand as economy recovered owing partially to political
measures. There was also the impact of material prices soaring as well as a
prolonged components shortage.
Revenue
Revenue in the first 9 months increased by 240.6 billion yen from the same
period of the previous fiscal year to 3,181.2 billion yen due primarily to
increased revenue in Industrial Automation Systems, Home Appliances and
Electronic Devices segments, despite decreased revenue in Energy and Electric
Systems segment. 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 digital equipment and decarbonization
worldwide. The automotive equipment business saw an increase in the first 9
months owing to recovery from the impact of COVID-19 in the first quarter,
despite a decrease in and after the second quarter due mainly to a
semiconductor shortage. Home Appliances segment increased due primarily to an
increase in air conditioners primarily in Europe and North America, despite a
decrease in air conditioners in Japan due mainly to a semiconductor shortage.
Electronic Devices segment increased due primarily to recovery in demand for
power modules.
Operating Profit
Operating profit increased by 52.4 billion yen from the same period of the
previous fiscal year to 190.1 billion yen due mainly to increased operating
profit in Industrial Automation Systems, Home Appliances and Electronic
Devices segments, despite decreased operating profit in Energy and Electric
Systems segment. Operating profit ratio improved by 1.3 point from the same
period of the previous fiscal year to 6.0% due mainly to increased revenue.
The cost ratio improved by 1.1 point from the same period of the previous
fiscal year due primarily to higher operating ratio caused by increased
revenue of Industrial Automation Systems segment and the yen depreciating
against other currencies, despite material prices soaring. Selling, general
and administrative expenses increased by 50.3 billion yen from the same period
of the previous fiscal year, but selling, general and administrative expenses
to revenue ratio improved by 0.2 point. Other profit (loss) increased by 1.8
billion yen from the same period of the previous fiscal year, and other profit
(loss) to revenue ratio remained substantially unchanged.
Profit before income taxes
Profit before income taxes increased by 48.8 billion yen from the same period
of the previous fiscal year to 207.2 billion yen due primarily to an increase
in operating profit. Profit before income taxes to revenue ratio was 6.5%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders
increased by 40.6 billion yen from the same period of the previous fiscal year
to 148.4 billion yen due mainly to increased profit before income taxes. Net
profit attributable to Mitsubishi Electric Corporation stockholders to revenue
ratio was 4.7%.
Consolidated Financial Results by Business Segment (First 9 Months, Fiscal
2022)
Energy and Electric Systems
Revenue: 843.8 billion yen (3% decrease from the same period last year which recorded 867.9 billion yen)
Operating profit: 32.9 billion yen (25.7 billion yen decrease from the same period last year which recorded 58.6
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 decreases in both orders and
revenue from the same period of the previous fiscal year due primarily to
decreases in the power systems and the transportation systems businesses in
Japan.
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 3% from the same period of
the previous fiscal year to 843.8 billion yen.
Operating profit decreased by 25.7 billion yen from the same period of the
previous fiscal year to 32.9 billion yen due mainly to decreased revenue and a
shift in project portfolios.
Industrial Automation Systems
Revenue: 1,058.6 billion yen (19% increase from the same period last year which recorded 892.1 billion yen)
Operating profit: 81.9 billion yen (53.6 billion yen increase from the same period last year which recorded 28.3
billion yen)
The market of the factory automation systems business saw a global increase in
demand for capital expenditures relating to digital equipment such as
semiconductor, electronic components and smartphones, as well as to
decarbonization such as lithium-ion battery. 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 an increase in sales of
new cars in all regions except for China in the first quarter due to a
recovery from a slowdown stemming from COVID-19, while sales of new cars
remained substantially unchanged in the first 9 months due primarily to a
semiconductor shortage. 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 19% from the same period of
the previous fiscal year to 1,058.6 billion yen.
Operating profit increased by 53.6 billion yen from the same period of the
previous fiscal year to 81.9 billion yen due mainly to increased revenue and
the yen depreciating against other currencies.
Information and Communication Systems
Revenue: 225.1 billion yen (8% decrease from the same period last year which recorded 243.7 billion yen)
Operating profit: 7.3 billion yen (1.3 billion yen increase from the same period last year which recorded 6.0
billion yen)
The market of the information systems and service business saw the restart of
delayed system development projects, particularly in the manufacturing
industry, while large-scale projects for the IT infrastructure service
businesses decreased. 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
8% from the same period of the previous fiscal year to 225.1 billion yen.
Operating profit increased by 1.3 billion yen from
the same period of the previous fiscal year to 7.3 billion yen due mainly to a
shift in project portfolios.
Electronic Devices
Revenue: 179.0 billion yen (20% increase from the same period last year which recorded 148.9 billion yen)
Operating profit: 12.0 billion yen (4.4 billion yen increase from the same period last year which recorded 7.5
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 also increased by 20% from the same
period of the previous fiscal year to 179.0 billion yen due primarily to an
increase in power modules used in industrial, consumer and automotive
applications.
Operating profit increased by 4.4 billion yen from the same period of the
previous fiscal year to 12.0 billion yen due mainly to increased revenue.
Home Appliances
Revenue: 847.9 billion yen (12% increase from the same period last year which recorded 754.9 billion yen)
Operating profit: 66.6 billion yen (9.1 billion yen increase from the same period last year which recorded 57.4
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, although there was an impact of a semiconductor
shortage. 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 12% from the same
period of the previous fiscal year to 847.9 billion yen due mainly to an
increase in air conditioners primarily in Europe and North America, despite a
decrease in air conditioners in Japan.
Operating profit increased by 9.1 billion yen from
the same period of the previous fiscal year to 66.6 billion yen due mainly to
increased revenue and the yen depreciating against other currencies.
Others
Revenue: 486.5 billion yen (15% increase from the same period last year which recorded 424.8 billion yen)
Operating profit: 14.6 billion yen (8.8 billion yen increase from the same period last year which recorded 5.8
billion yen)
Revenue increased by 15% from the same period of the previous fiscal year to
486.5 billion yen due primarily to increases in materials procurement and
logistics.
Operating profit increased by 8.8 billion yen from the same period of the
previous fiscal year to 14.6 billion yen due mainly to increased revenue.
2. Consolidated Third-quarter Results (October 1, 2021 - December 31, 2021)
Revenue: 1,042.8 billion yen (Substantially unchanged from the same period last year)
Operating profit: 52.3 billion yen (31% decrease from the same period last year)
Profit before income taxes: 58.8 billion yen (29% decrease from the same period last year)
Net profit attributable to Mitsubishi Electric Corp. stockholders: 43.6 billion yen (27% decrease from the same period last year)
Revenue
Revenue in the third quarter increased by 4.2 billion yen from the same period
of the previous fiscal year to 1,042.8 billion yen due primarily to increased
revenue in Industrial Automation Systems and Electronic Devices segments,
despite decreased revenue in Energy and Electric Systems and Information and
Communication Systems 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 digital equipment and
decarbonization worldwide. Meanwhile, the automotive equipment business
decreased as sales of new cars decreased globally due primarily to a
semiconductor shortage. Electronic Devices segment increased due primarily to
recovery in demand for power modules.
Operating Profit
Operating profit decreased by 23.9 billion yen from the same period of the
previous fiscal year to 52.3 billion yen due mainly to decreased operating
profit in Energy and Electric Systems and Home Appliances segments, although
operating profit increased in Electronic Devices and Information and
Communication Systems segments. Operating profit ratio deteriorated by 2.4
point from the same period of the previous fiscal year to 5.0% due primarily
to deteriorated cost ratio.
The cost ratio deteriorated by 0.7 point from the same period of the previous
fiscal year due mainly to the impact of material prices soaring on Home
Appliances segment and a shift in project portfolios of Energy and Electric
Systems segment, despite the yen depreciating against other currencies and
higher operating ratio caused by increased revenue of Industrial Automation
Systems and Electronic Devices segments. Selling, general and administrative
expenses increased by 17.9 billion yen from the same period of the previous
fiscal year, and selling, general and administrative expenses to revenue ratio
deteriorated by 1.6 point. Other profit (loss) decreased by 0.1 billion yen
from the same period of the previous fiscal year, and other profit (loss) to
revenue ratio deteriorated by 0.1 point.
Profit before income taxes
Profit before income taxes decreased by 23.8 billion yen from the same period
of the previous fiscal year to 58.8 billion yen due primarily to a decrease in
operating profit. Profit before income taxes to revenue ratio was 5.6%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders
decreased by 15.9 billion yen from the same period of the previous fiscal year
to 43.6 billion yen due mainly to decreased profit before income taxes. Net
profit attributable to Mitsubishi Electric Corporation stockholders to revenue
ratio was 4.2%.
Consolidated Financial Results by Business Segment (Third Quarter, Fiscal
2022)
Energy and Electric Systems
Revenue: 282.9 billion yen (7% decrease from the same period last year which recorded 303.2 billion yen)
Operating profit: 12.3 billion yen (20.0 billion yen decrease from the same period last year which recorded 32.4
billion yen)
The market of the social infrastructure systems business saw an increase in
demand relating to power systems outside Japan, but 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 an increase in orders from
the same period of the previous fiscal year due primarily to an increase in
the power systems business outside Japan, while revenue decreased from the
same period of the previous fiscal year due mainly to decreases in the power
systems and the transportation systems businesses in Japan.
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 mainly
to an increase primarily in China.
As a result, revenue for this segment decreased by 7% from the same period of
the previous fiscal year to 282.9 billion yen.
Operating profit decreased by 20.0 billion yen from the same period of the
previous fiscal year to 12.3 billion yen due mainly to decreased revenue and a
shift in project portfolios.
Industrial Automation Systems
Revenue: 366.4 billion yen (7% increase from the same period last year which recorded 343.5 billion yen)
Operating profit: 26.3 billion yen (0.1 billion yen decrease from the same period last year which recorded 26.5
billion yen)
The market of the factory automation systems business saw a global increase in
demand for capital expenditures relating to digital equipment such as
semiconductor, electronic components and smartphones, as well as to
decarbonization such as lithium-ion battery. 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 sales of 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 a decrease in electrical components.
As a result, revenue for this segment increased by 7% from the same period of
the previous fiscal year to 366.4 billion yen.
Operating profit decreased by 0.1 billion yen from the same period of the
previous fiscal year to 26.3 billion yen. Operating profit of the automotive
equipment business decreased due primarily to decreased revenue and material
prices soaring, while operating profit of the factory automation systems
business increased due mainly to increased revenue.
Information and Communication Systems
Revenue: 70.9 billion yen (9% decrease from the same period last year which recorded 78.2 billion yen)
Operating profit: 2.7 billion yen (1.5 billion yen increase from the same period last year which recorded 1.1
billion yen)
The market of the information systems and service business saw the restart of
delayed system development projects, particularly in the manufacturing
industry, as well as an increase in the system integrations business. In this
environment, the business saw increases in both orders and revenue from the
same period of the previous fiscal year.
The electronic systems business saw decreases in
both orders and revenue from the same period of the previous fiscal year due
primarily to a decrease in large-scale projects for the defense systems
business.
As a result, revenue for this segment decreased by
9% from the same period of the previous fiscal year to 70.9 billion yen.
Operating profit increased by 1.5 billion yen from
the same period of the previous fiscal year to 2.7 billion yen due mainly to a
shift in project portfolios.
Electronic Devices
Revenue: 58.5 billion yen (21% increase from the same period last year which recorded 48.3 billion yen)
Operating profit: 6.8 billion yen (5.1 billion yen increase from the same period last year which recorded 1.7
billion yen)
The market of the electronic devices business saw recovery in demand for power
modules used in consumer and industrial applications. In this environment, the
business saw an increase in orders from the same period of the previous fiscal
year and revenue also increased by 21% from the same period of the previous
fiscal year to 58.5 billion yen due primarily to an increase in power modules
used in consumer and industrial applications.
Operating profit increased by 5.1 billion yen from the same period of the
previous fiscal year to 6.8 billion yen due mainly to increased revenue.
Home Appliances
Revenue: 252.3 billion yen (Substantially unchanged from the same period last year which recorded 251.2
billion yen)
Operating profit: 8.2 billion yen (13.6 billion yen decrease from the same period last year which recorded 21.9
billion yen)
The market of the home appliances business saw an increase in demand for air
conditioners outside Japan, primarily in Europe and North America, while a
semiconductor shortage had an impact on the market of air conditioners in
Japan. In this environment, revenue of the business remained substantially
unchanged from the same period of the previous fiscal year, recording 252.3
billion yen due mainly to an increase in air conditioners primarily in Europe
and North America, despite a decrease in air conditioners in Japan.
Operating profit decreased by 13.6 billion yen from
the same period of the previous fiscal year to 8.2 billion yen due mainly to
material prices soaring.
Others
Revenue: 167.4 billion yen (10% increase from the same period last year which recorded 152.4 billion yen)
Operating profit: 6.4 billion yen (2.6 billion yen increase from the same period last year which recorded 3.8
billion yen)
Revenue increased by 10% from the same period of the previous fiscal year to
167.4 billion yen due primarily to increases in materials procurement and
logistics.
Operating profit increased by 2.6 billion yen from the same period of the
previous fiscal year to 6.4 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 62.4 billion yen to 4,735.4 billion yen. The
change in balance of total assets was mainly attributable to decreases in
trade receivables by 164.5 billion yen and cash and cash equivalents by 135.2
billion yen, while inventories increased by 206.6 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 and Home Appliances segments, as well
as shortages of semiconductors and other electronic components.
Total liabilities decreased from the end of the previous fiscal year by 119.6
billion yen to 1,807.6 billion yen due primarily to decreases in bonds,
borrowings and lease liabilities by 27.3 billion yen, trade payables by 11.0
billion yen, and other current liabilities by 87.0 billion yen. Bonds and
borrowings decreased by 18.4 billion yen from the end of the previous fiscal
year to 230.4 billion yen, with the ratio of bonds and borrowings to total
assets recording 4.9%, representing a 0.3 point decrease compared to the end
of the previous fiscal year.
Mitsubishi Electric Corporation stockholders' equity increased by 57.2 billion
yen compared to the end of the previous fiscal year to 2,811.5 billion yen.
The stockholders' equity ratio was recorded at 59.4%, representing a 2.0 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 148.4
billion yen, despite a decrease due to dividend payment of 85.7 billion yen.
An analysis on the status of cash flow on a consolidated basis
Cash flows from operating activities for the first 9 months of fiscal 2022 was
117.1 billion yen (cash in), while cash flows from investing activities was
72.2 billion yen (cash out). As a result, free cash flow was 44.8 billion yen
(cash in). Cash flows from financing activities was 191.4 billion yen (cash
out), and cash and cash equivalents at end of period decreased from the end of
the previous fiscal year by 135.2 billion yen to 632.1 billion yen.
Net cash provided by operating activities decreased
by 199.6 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
67.8 billion yen from the same period of the previous fiscal year due mainly
to an increase in proceeds from sale of investment securities and a decrease
in purchase of property, plant and equipment in the first 9 months of fiscal
2022 as a result of restricted capital expenditures in the previous fiscal
year.
Net cash used in financing activities increased by
97.2 billion yen from the same period of the previous fiscal year due
primarily to a decrease in proceeds of short-term borrowings and an increase
in purchase of treasury stock.
Forecast for Fiscal 2022
Mitsubishi Electric's business performance for fiscal 2022 is expected to fall
below the company's previous forecast considering the impact of material
prices soaring and shortages of semiconductors and other electronic
components, despite changes in exchange rates in response to the yen's
depreciation. As a result, the company's consolidated earnings forecast for
fiscal 2022, ending March 31, 2022, has been revised from the announcement on
October 28, 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
Previous forecast (announced Current forecast Change from previous forecast
October 28)
Revenue: 4,500.0 billion yen 4,490.0 billion yen (7% increase from fiscal 2021) Down 10.0 billion yen, or 0%
Operating profit: 280.0 billion yen 260.0 billion yen (13% increase from fiscal 2021) Down 20.0 billion yen, or 7%
Profit before income taxes: 305.0 billion yen 285.0 billion yen (10% increase from fiscal 2021) Down 20.0 billion yen, or 7%
Net profit attributable to Mitsubishi Electric Corp. stockholders: 220.0 billion yen 210.0 billion yen (9% increase from fiscal 2021) Down 10.0 billion yen, or 5%
Exchange rates in the fourth quarter of fiscal 2022 is 113 yen to the U.S.
dollar, which is 3 yen weaker from the company's previous announcement; 128
yen to the euro, which is 3 yen weaker from the company's previous
announcement; and 17.8 yen to the Chinese yuan, which is 0.8 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 First 9 Months Results
(In billions of yen except where noted)
FY '21 9 months (A) FY '22 9 months (B)
(Apr. 1, 2020 - Dec. 31, 2020)
(Apr. 1, 2021 - Dec. 31, 2021)
B - A B/A (%)
Revenue 2,940.6 3,181.2 240.6 108
Operating profit 137.7 190.1 52.4 138
Profit before income taxes 158.3 207.2 48.8 131
Net profit attributable to Mitsubishi Electric Corp. stockholders 107.7 148.4 40.6 138
Basic earnings per share attributable to Mitsubishi Electric Corp. 50.(24) yen 69. (44) yen 19.(20) yen 138
stockholders
2. Consolidated Third-quarter Results
(In billions of yen except where noted)
FY '21 Q3 (A) FY '22 Q3 (B)
(Oct. 1, 2020 -
(Oct. 1, 2021 - Dec. 31, 2021)
Dec. 31, 2020)
B - A B/A
(%)
Revenue 1,038.5 1,042.8 4.2 100
Operating profit 76.3 52.3 (23.9) 69
Profit before income taxes 82.6 58.8 (23.8) 71
Net profit attributable to Mitsubishi Electric Corp. stockholders 59.5 43.6 (15.9) 73
Basic earnings per share attributable to Mitsubishi Electric Corp. 27.(76) yen 20.(48) yen (7.(28) yen) 74
stockholders
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 9 Months,
Fiscal 2022)
(Condensed Quarterly Consolidated Statement of Profit or Loss)
(In millions of yen)
FY '21 9 months FY '22 9 months
(Apr. 1, 2020 - (Apr. 1, 2021 -
Dec. 31, 2020) Dec. 31, 2021)
(A) % of total (B) % of total B - A B/A
(%)
Revenue 2,940,611 100.0 3,181,263 100.0 240,652 108
Cost of sales 2,123,770 72.2 2,263,445 71.1 139,675 107
Selling, general and 680,813 23.2 731,154 23.0 50,341 107
administrative expenses
Other profit (loss) 1,680 0.1 3,525 0.1 1,845 210
Operating profit 137,708 4.7 190,189 6.0 52,481 138
Financial income 7,886 0.3 7,436 0.2 (450) 94
Financial expenses 2,064 0.1 2,595 0.1 531 126
Share of profit of investments accounted for using the 14,823 0.5 12,202 0.4 (2,621) 82
equity method
Profit before income taxes 158,353 5.4 207,232 6.5 48,879 131
Income taxes 44,498 1.5 47,645 1.5 3,147 107
Net profit 113,855 3.9 159,587 5.0 45,732 140
Net profit attributable to:
Mitsubishi Electric Corp. 107,781 3.7 148,465 4.7 40,684 138
stockholders
Non-controlling interests 6,074 0.2 11,122 0.3 5,048 183
(Condensed Quarterly Consolidated Statement of Comprehensive Income)
(In millions of yen)
FY '21 FY '22 B - A
9 months (A) 9 months (B)
(Apr. 1, 2020 - (Apr. 1, 2021 - Dec. 31, 2021)
Dec. 31, 2020)
Net profit 113,855 159,587 45,732
(Other comprehensive income (loss),
net of tax)
Items that will not be reclassified to
net profit
Changes in fair value of financial assets measured at fair value through other 52,282 7,145 (45,137)
comprehensive income
Share of other comprehensive income of investments accounted for using the 702 220 (482)
equity method
Subtotal 52,984 7,365 (45,619)
Items that may be reclassified to net profit
Exchange differences on translating foreign operations 21,515 17,757 (3,758)
Net changes in the fair value of cash flow hedges 121 (24) (145)
Share of other comprehensive income of investments accounted for using the (520) 4,021 4,541
equity method
Subtotal 21,116 21,754 638
Total other comprehensive income (loss) 74,100 29,119 (44,981)
Comprehensive income 187,955 188,706 751
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders 180,527 175,155 (5,372)
Non-controlling interests 7,428 13,551 6,123
Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed
Quarterly Consolidated Statement of Comprehensive Income (Third Quarter,
Fiscal 2022)
(Condensed Quarterly Consolidated Statement of Profit or Loss)
(In millions of yen)
FY '21 Q3 FY '22 Q3
(Oct. 1, 2020 - (Oct. 1, 2021 -
Dec. 31, 2020) Dec. 31, 2021)
(A) % of total (B) % of total B - A B/A
(%)
Revenue 1,038,587 100.0 1,042,886 100.0 4,299 100
Cost of sales 738,947 71.1 749,126 71.8 10,179 101
Selling, general and 224,280 21.6 242,267 23.2 17,987 108
administrative expenses
Other profit (loss) 994 0.1 866 0.0 (128) 87
Operating profit 76,354 7.4 52,359 5.0 (23,995) 69
Financial income 2,688 0.3 3,496 0.3 808 130
Financial expenses 624 0.1 618 0.1 (6) 99
Share of profit of investments accounted for using the 4,249 0.4 3,600 0.4 (649) 85
equity method
Profit before income taxes 82,667 8.0 58,837 5.6 (23,830) 71
Income taxes 20,214 2.0 13,175 1.2 (7,039) 65
Net profit 62,453 6.0 45,662 4.4 (16,791) 73
Net profit attributable to:
Mitsubishi Electric Corp. 59,550 5.7 43,629 4.2 (15,921) 73
stockholders
Non-controlling interests 2,903 0.3 2,033 0.2 (870) 70
(Condensed Quarterly Consolidated Statement of Comprehensive Income)
(In millions of yen)
FY '21 Q3 (A) FY '22 Q3 (B) B - A
(Oct. 1, 2020 - (Oct. 1, 2021 -
Dec. 31, 2020) Dec. 31, 2021)
Net profit 62,453 45,662 (16,791)
(Other comprehensive income (loss),
net of tax)
Items that will not be reclassified to
net profit
Changes in fair value of financial assets measured at fair value through other 23,226 (4,505) (27,731)
comprehensive income
Share of other comprehensive income of investments accounted for using the 121 (357) (478)
equity method
Subtotal 23,347 (4,862) (28,209)
Items that may be reclassified to net profit
Exchange differences on translating foreign operations 16,172 27,001 10,829
Net changes in the fair value of cash flow hedges 55 33 (22)
Share of other comprehensive income of investments accounted for using the 909 (77) (986)
equity method
Subtotal 17,136 26,957 9,821
Total other comprehensive income (loss) 40,483 22,095 (18,388)
Comprehensive income 102,936 67,757 (35,179)
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders 98,925 62,596 (36,329)
Non-controlling interests 4,011 5,161 1,150
Condensed Quarterly Consolidated Statement of Financial Position
(In millions of yen)
FY '21 (A) FY' 22 Q3 (B) B - A
(ended Mar. 31, 2021) (ended Dec. 31, 2021)
(Assets)
Current assets 2,846,972 2,831,472 (15,500)
Cash and cash equivalents 767,406 632,126 (135,280)
Trade receivables 906,831 742,318 (164,513)
Contract assets 274,231 333,975 59,744
Inventories 743,782 950,470 206,688
Other current assets 154,722 172,583 17,861
Non-current assets 1,950,949 1,903,960 (46,989)
Investments accounted for using the equity method 205,464 209,821 4,357
Other financial assets 353,624 322,405 (31,219)
Property, plant and equipment 857,645 849,316 (8,329)
Other non-current assets 534,216 522,418 (11,798)
Total assets 4,797,921 4,735,432 (62,489)
(Liabilities)
Current liabilities 1,505,381 1,415,084 (90,297)
Bonds, borrowings and lease liabilities 152,657 160,424 7,767
Trade payables 541,774 530,770 (11,004)
Other current liabilities 810,950 723,890 (87,060)
Non-current liabilities 421,929 392,576 (29,353)
Bonds, borrowings and lease liabilities 212,774 177,678 (35,096)
Net defined benefit liabilities 161,388 169,251 7,863
Other non-current liabilities 47,767 45,647 (2,120)
Total liabilities 1,927,310 1,807,660 (119,650)
(Equity)
Mitsubishi Electric Corp. stockholders' equity 2,754,293 2,811,568 57,275
Common stock 175,820 175,820 －
Capital surplus 202,777 201,957 (820)
Retained earnings 2,266,490 2,344,672 78,182
Accumulated other comprehensive income (loss) 111,801 123,051 11,250
Treasury stock, at cost (2,595) (33,932) (31,337)
Non-controlling interests 116,318 116,204 (114)
Total equity 2,870,611 2,927,772 57,161
Total liabilities and equity 4,797,921 4,735,432 (62,489)
Bonds, borrowings and lease liabilities 365,431 338,102 (27,329)
Excluding lease liabilities 248,897 230,491 (18,406)
Accumulated other comprehensive income (loss):
Exchange differences on translating foreign operations 17,866 37,068 19,202
Financial assets measured at fair value through other comprehensive income 93,893 85,964 (7,929)
Net changes in the fair value of cash flow hedges 42 19 (23)
Condensed Quarterly Consolidated Statement of Changes in Equity
FY' 21 First 9 Months (Apr. 1, 2020 - Dec. 31, 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 107,781 107,781 6,074 113,855
Other comprehensive income (loss), net of tax 72,746 72,746 1,354 74,100
Comprehensive income － － 107,781 72,746 － 180,527 7,428 187,955
Reclassification to retained earnings (4,613) 4,613 － －
Dividends (77,283) (77,283) (6,126) (83,409)
Purchase of treasury stock (367) (367) (367)
Disposal of treasury stock (696) 696 0 0
Transactions with non-controlling interests and others 129 129 184 313
Balance at end of period 175,820 202,265 2,097,702 59,557 (2,595) 2,532,749 110,602 2,643,351
FY '22 First 9 Months (Apr. 1, 2021 - Dec. 31, 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 148,465 148,465 11,122 159,587
Other comprehensive income (loss), net of tax 26,690 26,690 2,429 29,119
Comprehensive income － － 148,465 26,690 － 175,155 13,551 188,706
Reclassification to retained earnings 15,440 (15,440) － －
Dividends (85,723) (85,723) (13,020) (98,743)
Purchase of treasury stock (32,390) (32,390) (32,390)
Disposal of treasury stock (1,053) 1,053 0 0
Transactions with non-controlling interests and others 233 233 (645) (412)
Balance at end of period 175,820 201,957 2,344,672 123,051 (33,932) 2,811,568 116,204 2,927,772
Condensed Quarterly Consolidated Statement of Cash Flows
(In millions of yen)
FY '21 9 months FY '22 9 months B - A
(Apr. 1, 2020 - Dec. 31, 2020) (Apr. 1, 2021 - Dec. 31, 2021)
(A) (B)
I Cash flows from operating activities
1 Net profit 113,855 159,587 45,732
2 Adjustments to cash flows from operating activities
(1) Depreciation, amortization and other 158,844 148,829 (10,015)
(2) Decrease in trade receivables 194,097 173,819 (20,278)
(3) Decrease (increase) in contract assets (2,720) (59,485) (56,765)
(4) Decrease (increase) in inventories (76,599) (199,601) (123,002)
(5) Increase (decrease) in trade payables (45,573) (13,675) 31,898
(6) Others, net (25,079) (92,330) (67,251)
Cash flows from operating activities 316,825 117,144 (199,681)
II Cash flows from investing activities
1 Purchase of property, plant and equipment (127,058) (93,605) 33,453
2 Proceeds from sale of property, plant and equipment 3,733 1,277 (2,456)
3 Purchase of investment securities and others (net of cash acquired) (13,768) (11,956) 1,812
4 Proceeds from sale of investment securities and others (net of cash 8,540 47,136 38,596
disposed)
5 Others, net (11,596) (15,131) (3,535)
Cash flows from investing activities (140,149) (72,279) 67,870
I + II Free cash flow 176,676 44,865 (131,811)
III Cash flows from financing activities
1 Proceeds and repayments of bonds and long-term borrowings (27,252) (20,244) 7,008
2 Increase in short-term borrowings, net 58,989 1,336 (57,653)
3 Repayments of lease liabilities (41,660) (41,270) 390
4 Dividends paid (77,283) (85,723) (8,440)
5 Purchase of treasury stock (367) (32,390) (32,023)
6 Disposal of treasury stock 0 0 (0)
7 Others, net (6,605) (13,173) (6,568)
Cash flows from financing activities (94,178) (191,464) (97,286)
IV Effect of exchange rate changes on cash and cash equivalents 5,471 11,319 5,848
V Net increase (decrease) in cash and cash equivalents 87,969 (135,280) (223,249)
VI Cash and cash equivalents at beginning of period 537,559 767,406 229,847
VII Cash and cash equivalents at end of period 625,528 632,126 6,598
Consolidated Segment Information (First 9 Months, Fiscal 2022)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment FY '21 9 months FY '22 9 months C - A D - B C/A
(Apr. 1, 2020 - (Apr. 1, 2021 - (%)
Dec. 31, 2020) Dec. 31, 2021)
Revenue (A) Operating profit (B) Revenue Operating profit (D)
(C)
Energy and Electric Systems 867,976 58,690 843,817 32,990 (24,159) (25,700) 97
Industrial Automation Systems 892,123 28,326 1,058,648 81,929 166,525 53,603 119
Information and 243,775 6,033 225,100 7,362 (18,675) 1,329 92
Communication Systems
Electronic Devices 148,905 7,520 179,057 12,000 30,152 4,480 120
Home Appliances 754,931 57,495 847,960 66,627 93,029 9,132 112
Others 424,884 5,809 486,577 14,657 61,693 8,848 115
Subtotal 3,332,594 163,873 3,641,159 215,565 308,565 51,692 109
Eliminations and corporate (391,983) (26,165) (459,896) (25,376) (67,913) 789 －
Consolidated Total 2,940,611 137,708 3,181,263 190,189 240,652 52,481 108
*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 9 months FY '22 9 months B - A B/A (%)
(Apr. 1, 2020 - (Apr. 1, 2021 -
Dec. 31, 2020) Dec. 31, 2021)
Revenue (A) % of total revenue Revenue (B) % of total revenue
Japan 1,673,229 56.9 1,612,982 50.7 (60,247) 96
North America 269,572 9.2 331,244 10.4 61,672 123
China 360,774 12.3 438,160 13.8 77,386 121
Other than China 310,066 10.5 377,368 11.9 67,302 122
Asia (excluding Japan) 670,840 22.8 815,528 25.7 144,688 122
Europe 282,000 9.6 370,334 11.6 88,334 131
Others 44,970 1.5 51,175 1.6 6,205 114
Total overseas revenue 1,267,382 43.1 1,568,281 49.3 300,899 124
Consolidated total 2,940,611 100.0 3,181,263 100.0 240,652 108
Consolidated Segment Information (Third Quarter, Fiscal 2022)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment FY '21 Q3 FY '22 Q3 C - A D - B C/A
(Oct. 1, 2020 - (Oct. 1, 2021 - (%)
Dec. 31, 2020) Dec. 31, 2021)
Revenue (A) Operating profit (B) Revenue Operating profit (D)
(C)
Energy and Electric Systems 303,245 32,413 282,933 12,320 (20,312) (20,093) 93
Industrial Automation Systems 343,516 26,560 366,487 26,371 22,971 (189) 107
Information and 78,230 1,167 70,911 2,737 (7,319) 1,570 91
Communication Systems
Electronic Devices 48,322 1,718 58,565 6,892 10,243 5,174 121
Home Appliances 251,200 21,907 252,309 8,233 1,109 (13,674) 100
Others 152,452 3,838 167,410 6,446 14,958 2,608 110
Subtotal 1,176,965 87,603 1,198,615 62,999 21,650 (24,604) 102
Eliminations and corporate (138,378) (11,249) (155,729) (10,640) (17,351) 609 －
Consolidated Total 1,038,587 76,354 1,042,886 52,359 4,299 (23,995) 100
*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 Q3 FY '22 Q3 B - A B/A (%)
(Oct. 1, 2020 - (Oct. 1, 2021 -
Dec. 31, 2020) Dec. 31, 2021)
Revenue (A) % of total revenue Revenue (B) % of total revenue
Japan 592,891 57.1 529,438 50.8 (63,453) 89
North America 94,137 9.1 103,771 10.0 9,634 110
China 125,851 12.1 144,278 13.8 18,427 115
Other than China 111,255 10.7 131,605 12.6 20,350 118
Asia (excluding Japan) 237,106 22.8 275,883 26.4 38,777 116
Europe 97,728 9.4 115,227 11.0 17,499 118
Others 16,725 1.6 18,567 1.8 1,842 111
Total overseas revenue 445,696 42.9 513,448 49.2 67,752 115
Consolidated total 1,038,587 100.0 1,042,886 100.0 4,299 100
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, 2021
Click on, or paste the following link into your web browser, to view the
associated PDF document:
http://www.rns-pdf.londonstockexchange.com/rns/4390A_1-2022-2-2.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4390A_1-2022-2-2.pdf)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END QRTGSGDDCSGDGDDRecent news on Mitsubishi Electric
See all newsRCS - Informa Markets - Battery Show Europe Announces New Advisory Board
AnnouncementRCS - Informa Markets - Battery Show Europe Announces New Advisory Board
AnnouncementREG - Mitsubishi Elect. - Statement re (Delisting from the LSE)
AnnouncementREG - Stock Exch Notice Mitsubishi Elect. - Cancellation - MITSUBISHI ELECTRIC CORPORATION
AnnouncementREG - Mitsubishi Elect. - Statement re (JIS Q 9100/ ISO9001)
Announcement