REG - Mitsubishi Elect. - Final Results
28/04/2022 07:00
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RNS Number : 6671J Mitsubishi Electric Corporation 28 April 2022
FOR IMMEDIATE RELEASE No. 3516
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Mitsubishi Electric Announces Consolidated Financial Results for Fiscal 2022
TOKYO, April 28, 2022 - Mitsubishi Electric Corporation
(https://www.mitsubishielectric.com/) (TOKYO: 6503) announced today its
consolidated financial results for fiscal 2022 (April 1, 2021 - March 31,
2022).
Consolidated Financial Results
Revenue: 4,476.7 billion yen (7% increase compared to the previous fiscal year)
Operating profit: 252.0 billion yen (9% increase compared to the previous fiscal year)
Profit before income taxes: 279.6 billion yen (8% increase compared to the previous fiscal year)
Net profit attributable to Mitsubishi Electric Corp. stockholders: 203.4 billion yen (5% increase compared to the previous fiscal year)
The economy in fiscal 2022 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, while in Japan there was the downward
pressure stemming from the novel coronavirus diseases (COVID-19), despite
recovery owing to normalization of economic activities. China continued to see
recovery in export and manufacturing, while the pace of recovery in the
household sector slowed down. There was also the impact of the rise in
material prices and logistics costs as well as a prolonged components
shortage.
In this environment, the Mitsubishi Electric Group has been working even
harder than before to uplift profitability by strengthening its business
portfolio strategy towards sustainable growth, while continuously implementing
initiatives to strengthen its competitiveness and business structure.
Revenue
Revenue increased by 285.3 billion yen compared to the previous fiscal year to
4,476.7 billion yen due primarily to increased revenue in Industrial
Automation Systems, Home Appliances and Electronic Device 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. The automotive equipment business also increased
due to the expansion of the electric vehicle market. Home Appliances segment
increased due mainly to an increase in air conditioners particularly in Europe
and North America, despite a decrease in air conditioners in Japan due
primarily to a semiconductor shortage. Electronic Devices segment increased
due primarily to recovery in demand for power modules.
Operating profit
Operating profit increased by 21.8 billion yen compared to the previous fiscal
year to 252.0 billion yen due mainly to increased operating profit in
Industrial Automation Systems and Electronic Devices segments, despite
decreased operating profit in Energy and Electric Systems and Home Appliances
segments. Operating profit ratio improved by 0.1 points compared to the
previous fiscal year to 5.6% due mainly to increased revenue.
The cost ratio improved by 0.2 points compared to the previous fiscal year due
primarily to higher operating ratio owing to increased revenue in Industrial
Automation Systems segment and the yen depreciating against other currencies,
despite the rise in material prices. Selling, general and administrative
expenses increased by 60.0 billion yen compared to the previous fiscal year,
but selling, general and administrative expenses to revenue ratio improved by
0.2 points. Other profit (loss) decreased by 8.2 billion yen compared to the
previous fiscal year due mainly to decreased profit from sales of land, and
other profit (loss) to revenue ratio deteriorated by 0.3 points compared to
the previous fiscal year.
Profit before income taxes
Profit before income taxes increased by 20.9 billion yen compared to the
previous fiscal year to 279.6 billion yen due primarily to an increase in
operating profit. Profit before income taxes to revenue ratio was 6.2%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders
increased by 10.3 billion yen compared to the previous fiscal year to 203.4
billion yen due mainly to increased profit before income taxes. Net profit
attributable to Mitsubishi Electric Corporation stockholders to revenue ratio
was 4.5%.
ROE deteriorated by 0.4% compared to the previous fiscal year to 7.1%.
Consolidated Financial Results by Business Segment
Energy and Electric Systems
Revenue: 1,238.1 billion yen (3% decrease compared to the previous fiscal year, which recorded 1,270.2
billion yen)
Operating profit: 62.1 billion yen (46.7 billion yen decrease compared to the previous fiscal year, which
recorded 108.9 billion yen)
The market for the social infrastructure systems business saw buoyant
investment in the public utility business in Japan, while demand relating to
power systems decreased in Japan and there was the reconsideration of the
capital expenditure plans by railway companies in Japan due to the impact of
COVID-19. In this environment, orders won by the business remained
substantially unchanged compared to the previous fiscal year due primarily to
an increase in the public utility systems business in Japan despite a decrease
in the power systems and the transportation systems businesses in Japan.
Revenue decreased compared to the previous fiscal year due mainly to decreases
in the power systems and the transportation systems businesses in Japan.
The market for the building systems business saw recovery from stagnation
stemming from 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 compared to the previous fiscal year due mainly to an increase
primarily in China.
As a result, revenue for this segment decreased by 3% compared to the previous
fiscal year to 1,238.1 billion yen.
Operating profit decreased by 46.7 billion yen compared to the previous fiscal
year to 62.1 billion yen due mainly to decreased revenue and a shift in
project portfolios.
Industrial Automation Systems
Revenue: 1,460.3 billion yen (17% increase compared to the previous fiscal year, which recorded 1,248.5
billion yen)
Operating profit: 96.8 billion yen (56.2 billion yen increase compared to the previous fiscal year, which
recorded 40.5 billion yen)
The market for the factory automation systems business saw a global increase
in demand for capital expenditures relating to digital equipment such as
semiconductors, electronic components and smartphones, and products in the
decarbonization area such as lithium-ion batteries. In this environment, the
business saw increases in both orders and revenue compared to the previous
fiscal year.
The market for the automotive equipment business saw an increase in electric
vehicle-related equipment due to the expansion of electric vehicle market,
while sales of new cars decreased in Japan, China Europe and the U.S. due
primarily to a semiconductor shortage compared to the previous fiscal year. In
this environment, the business saw increases in both orders and revenue
compared to the previous fiscal year due mainly to increases in electric
vehicle-related equipment such as motors and inverters, as well as electrical
components.
As a result, revenue for this segment increased by 17% compared to the
previous fiscal year to 1,460.3 billion yen.
Operating profit for this segment increased by 56.2 billion yen compared to
the previous fiscal year to 96.8 billion yen, as operating profit for the
factory automation systems business increased due mainly to increased revenue
and the yen depreciating against other currencies, while operating profit for
the automotive equipment business decreased due primarily to the rise in
material prices and logistics costs.
Information and Communication Systems
Revenue: 354.1 billion yen (7% decrease compared to the previous fiscal year, which recorded 380.1
billion yen)
Operating profit: 14.7 billion yen (1.7 billion yen decrease compared to the previous fiscal year, which recorded
16.4 billion yen)
The market for the information systems and service business saw a decrease in
large-scale projects for the IT infrastructure service business, while delayed
system development projects restarted, particularly in the manufacturing
industry. In this environment, the business saw an increase in orders but a
decrease in revenue compared to the previous fiscal year.
The electronic systems business saw an increase in
orders compared to the previous fiscal year due primarily to an increase in
large-scale projects for the defense systems business, while revenue decreased
compared to 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% compared to the previous fiscal year to 354.1 billion yen.
Operating profit decreased by 1.7 billion yen
compared to the previous fiscal year to 14.7 billion yen due mainly to
decreased revenue.
Electronic Devices
Revenue: 241.4 billion yen (18% increase compared to the previous fiscal year, which recorded 205.2
billion yen)
Operating profit: 16.8 billion yen (10.5 billion yen increase compared to the previous fiscal year, which
recorded 6.2 billion yen)
The market for the electronic devices business saw recovery in demand for
power modules used in consumer, industrial and automotive applications. In
this environment, the business saw an increase in orders compared to the
previous fiscal year and revenue also increased by 18% compared to the
previous fiscal year to 241.4 billion yen due primarily to an increase in
power modules used in consumer, industrial and automotive applications.
Operating profit increased by 10.5 billion yen compared to the previous fiscal
year to 16.8 billion yen due mainly to increased revenue.
Home Appliances
Revenue: 1,144.7 billion yen (10% increase compared to the previous fiscal year, which recorded 1,038.3
billion yen)
Operating profit: 70.9 billion yen (4.8 billion yen decrease compared to the previous fiscal year, which recorded
75.7 billion yen)
The market for 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, despite the 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 10% compared to the
previous fiscal year to 1,144.7 billion yen due mainly to an increase in air
conditioners primarily in Europe and North America as well as the yen
depreciating against other currencies, despite a decrease in air conditioners
in Japan due primarily to a semiconductor shortage.
Operating profit decreased by 4.8 billion yen
compared to the previous fiscal year to 70.9 billion yen due mainly to the
rise in material prices and logistics costs despite increased revenue and the
yen depreciating against other currencies.
Others
Revenue: 676.2 billion yen (12% increase compared to the previous fiscal year, which recorded 603.0
billion yen)
Operating profit: 21.9 billion yen (8.3 billion yen increase compared to the previous fiscal year, which recorded
13.6 billion yen)
Revenue increased by 12% compared to the previous fiscal year to 676.2 billion
yen due primarily to increases in materials procurement and logistics.
Operating profit increased by 8.3 billion yen compared to the previous fiscal
year to 21.9 billion yen due mainly to increased revenue.
Fundamental Dividend Distribution Policy and Fiscal 2022 Dividend
Fundamental dividend distribution policy
Mitsubishi Electric's fundamental policy is to comprehensively promote
improvement in shareholders' profits from the viewpoints of appropriate profit
distribution commensurate with earnings performance of the respective fiscal
year, as well as strengthening our financial standing through Mitsubishi
Electric's internal reserves, with the ultimate goal of enhancing corporate
value.
Fiscal 2022 dividend
Considering the business performance and financial conditions in fiscal 2022,
Mitsubishi Electric has decided to pay a year-end retained earnings dividend
of 26 yen per share for fiscal 2022. Upon adding the interim dividend of 14
yen per share, the total annual dividend will be 40 yen per share. Payment is
planned to begin on June 2, 2022.
The retained earnings dividend for fiscal 2023 is still undecided.
cf. In fiscal 2021, the interim dividend was 10 yen and the year-end dividend
was 26 yen per share. (For an annual dividend of 36 yen per share)
Financial Standing
An analysis on the status of assets, liabilities and equity on a consolidated
basis
Total assets as of the end of fiscal 2022 increased compared to the end of the
previous fiscal year by 310.0 billion yen to 5,107.9 billion yen. The change
in balance of total assets was mainly attributable to increases in inventories
by 215.8 billion yen and other non-current assets by 85.1 billion yen.
Inventories increased due primarily to recovery in
demand for Industrial Automation Systems and Home Appliances segments as well
as the impact of semiconductor and electronic components shortages. Other
non-current assets increased due mainly to an increase in net defined benefit
assets mainly reflecting a rise in stock prices.
Total liabilities increased compared to the end of the previous fiscal year by
83.2 billion yen to 2,010.5 billion yen due primarily to increases in trade
payables by 59.8 billion yen and other current liabilities by 60.9 billion
yen. Bonds and borrowings decreased compared to the end of the previous fiscal
year by 31.7 billion yen to 217.1 billion yen, with the ratio of bonds and
borrowings to total assets recording 4.3%, representing a 0.9 point decrease
compared to the end of the previous fiscal year.
Mitsubishi Electric Corporation stockholders' equity increased by 221.6
billion yen compared to the end of the previous fiscal year to 2,975.9 billion
yen. The stockholders' equity ratio was recorded at 58.3%, representing a 0.9
point increase compared to the end of the previous fiscal year. These changes
mainly result from increases due to recording a net profit attributable to
Mitsubishi Electric Corporation stockholders of 203.4 billion yen and
accumulated other comprehensive income by 72.7 billion yen mainly reflecting
the yen depreciating against other currencies, despite a decrease due to a
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 fiscal 2022 were 282.3 billion yen
(cash in), while cash flows from investing activities were 114.8 billion yen
(cash out). As a result, free cash flow was 167.5 billion yen (cash in). Cash
flows from financing activities were 241.3 billion yen (cash out), and cash
and cash equivalents at end of period decreased compared to the end of the
previous fiscal year by 40.2 billion yen to 727.1 billion yen.
Net cash provided by operating activities decreased
by 259.7 billion yen compared to the previous fiscal year due primarily to an
increase in inventories despite increased profit.
Net cash used in investing activities decreased by
61.6 billion yen compared to 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 fiscal 2022 as a result of
restricted capital expenditures in the previous fiscal year.
Net cash used in financing activities increased by
83.9 billion yen compared to the previous fiscal year due primarily to an
increase in the purchase of treasury stock and a decrease in proceeds of
short-term borrowings.
Forecast for Fiscal 2023
The global economy in fiscal 2023 is expected to continue recovering but
growth is anticipated to slow down due to the expansion of COVID-19 variants
and supply constraints causing rising inflation in various countries and
regions, as well as a slowdown in the U.S. and China. There is also an
increase in uncertainty about recent geopolitical risks and the rise in
material prices, which might exert more downward pressure on the global
economy.
Under these circumstances, the Mitsubishi Electric Group aims to raise
profitability by strengthening its business portfolio strategy and promoting
global operations particularly of its Key Growth Businesses, while creating
new business and expanding solution business by exploring open innovations to
respond to the changing social structure and customer values. The Group also
aims to build a stable revenue base that tolerates change in order to minimize
the impact of the rise in material prices and logistics costs as well as
components shortages.
Based on a certain premise, Mitsubishi Electric 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 this 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/
The current financial performance forecast for fiscal 2023 follows below.
Current consolidated forecast for fiscal 2023
Revenue: 4,770.0 billion yen (7% increase compared to fiscal 2022)
Operating profit: 270.0 billion yen (7% increase compared to fiscal 2022)
Profit before income taxes: 295.0 billion yen (5% increase compared to fiscal 2022)
Net profit attributable to Mitsubishi Electric Corp. stockholders: 215.0 billion yen (6% increase compared to fiscal 2022)
Exchange rates for this forecast are 115 yen to the U.S. dollar, 125 yen to
the euro and 18 yen to the Chinese yuan.
Note: The results forecast above is based on assumptions deemed reasonable by
Mitsubishi Electric at the present time, and actual results may differ
significantly from forecasts. Please refer to the cautionary statement at the
end.
Policy Regarding Financial Reporting Standards
Mitsubishi Electric has voluntarily adopted International Financial Reporting
Standards (IFRS) for its consolidated financial statements from the first
quarter of the fiscal year ended March 31, 2019, in order to enhance
international comparability of its financial information in the capital
markets.
Consolidated Financial Results Summary
(In billions of yen except where noted)
FY '21 (A) FY '22 (B)
(Apr. 1, 2020 - (Apr. 1, 2021 -
Mar. 31, 2021) Mar. 31, 2022)
B - A B/A (%)
Revenue 4,191.4 4,476.7 285.3 107
Operating profit 230.1 252.0 21.8 109
Profit before income taxes 258.7 279.6 20.9 108
Net profit attributable to 193.1 203.4 10.3 105
Mitsubishi Electric Corp.
stockholders
Basic earnings per share attributable to Mitsubishi Electric Corp. 90.(03) yen 95.(41) yen 5.(38) yen 106
stockholders
Dividend per share
Annual dividend 36 yen 40 yen 4 yen 111
Interim dividend 10 yen 14 yen
Year-end dividend 26 yen 26 yen
Notes:
1) Consolidated financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS).
2) The company has 203 consolidated subsidiaries.
Consolidated Financial Statements
Consolidated Statement of Profit or Loss and Consolidated Statement of
Comprehensive Income (Fiscal 2022)
(Consolidated Statement of Profit or Loss)
(In millions of yen)
FY '21 FY '22
(Apr. 1, 2020 - (Apr. 1, 2021 -
Mar. 31, 2021) Mar. 31, 2022)
(A) % of total (B) % of total B - A B/A
(%)
Revenue 4,191,433 100.0 4,476,758 100.0 285,325 107
Cost of sales 3,017,059 72.0 3,212,216 71.8 195,157 106
Selling, general and 953,602 22.8 1,013,674 22.6 60,072 106
administrative expenses
Other profit (loss) 9,423 0.3 1,183 0.0 (8,240) 13
Operating profit 230,195 5.5 252,051 5.6 21,856 109
Financial income 12,136 0.3 11,910 0.3 (226) 98
Financial expenses 2,828 0.1 2,702 0.1 (126) 96
Share of profit of investments accounted for using the equity method 19,251 0.5 18,434 0.4 (817) 96
Profit before income taxes 258,754 6.2 279,693 6.2 20,939 108
Income taxes 57,071 1.4 61,808 1.3 4,737 108
Net profit 201,683 4.8 217,885 4.9 16,202 108
Net profit attributable to:
Mitsubishi Electric Corp. 193,132 4.6 203,482 4.5 10,350 105
stockholders
Non-controlling interests 8,551 0.2 14,403 0.4 5,852 168
(Consolidated Statement of Comprehensive Income)
(In millions of yen)
FY '21 (A) FY '22 (B) B - A
(Apr. 1, 2020 - (Apr. 1, 2021 -
Mar. 31, 2021) Mar. 31, 2022)
Net profit 201,683 217,885 16,202
(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 64,457 6,762 (57,695)
comprehensive income
Remeasurements of defined benefit plans 84,501 64,720 (19,781)
Share of other comprehensive income of investments accounted for using the 2,159 342 (1,817)
equity method
Subtotal 151,117 71,824 (79,293)
Items that may be reclassified to net profit
Exchange differences on translating foreign operations 61,880 80,060 18,180
Net changes in the fair value of cash flow hedges 92 (2) (94)
Share of other comprehensive income of investments accounted for using the 1,182 9,118 7,936
equity method
Subtotal 63,154 89,176 26,022
Total other comprehensive income (loss) 214,271 161,000 (53,271)
Comprehensive income 415,954 378,885 (37,069)
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders 401,559 356,926 (44,633)
Non-controlling interests 14,395 21,959 7,564
Consolidated Statement of Financial Position
(In millions of yen)
FY '21 (A) FY '22 (B) B - A
(ended Mar. 31, 2021) (ended Mar. 31, 2022)
(Assets)
Current assets 2,846,972 3,090,296 243,324
Cash and cash equivalents 767,406 727,179 (40,227)
Trade receivables 906,831 944,405 37,574
Contract assets 274,231 287,697 13,466
Inventories 743,782 959,660 215,878
Other current assets 154,722 171,355 16,633
Non-current assets 1,950,949 2,017,677 66,728
Investments accounted for using the equity method 205,464 221,467 16,003
Other financial assets 353,624 321,056 (32,568)
Property, plant and equipment 857,645 855,746 (1,899)
Other non-current assets 534,216 619,408 85,192
Total assets 4,797,921 5,107,973 310,052
(Liabilities)
Current liabilities 1,505,381 1,646,722 141,341
Bonds, borrowings and lease liabilities 152,657 173,213 20,556
Trade payables 541,774 601,606 59,832
Other current liabilities 810,950 871,903 60,953
Non-current liabilities 421,929 363,854 (58,075)
Bonds, borrowings and lease liabilities 212,774 156,248 (56,526)
Net defined benefit liabilities 161,388 162,353 965
Other non-current liabilities 47,767 45,253 (2,514)
Total liabilities 1,927,310 2,010,576 83,266
(Equity)
Mitsubishi Electric Corp. stockholders' equity 2,754,293 2,975,941 221,648
Common stock 175,820 175,820 －
Capital surplus 202,777 202,695 (82)
Retained earnings 2,266,490 2,464,966 198,476
Accumulated other comprehensive income (loss) 111,801 184,528 72,727
Treasury stock, at cost (2,595) (52,068) (49,473)
Non-controlling interests 116,318 121,456 5,138
Total equity 2,870,611 3,097,397 226,786
Total liabilities and equity 4,797,921 5,107,973 310,052
Bonds, borrowings and lease liabilities 365,431 329,461 (35,970)
Excluding lease liabilities 248,897 217,171 (31,726)
Accumulated other comprehensive income (loss):
Exchange differences on translating foreign operations 17,866 99,293 81,427
Financial assets measured at fair value through other comprehensive income 93,893 85,204 (8,689)
Net changes in the fair value of cash flow hedges 42 31 (11)
Consolidated Statement of Changes in Equity
FY '21 (Apr. 1, 2020 - Mar. 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 175,820 202,832 2,071,817 (17,802) (2,924) 2,429,743 109,116 2,538,859
Comprehensive income
Net profit 193,132 193,132 8,551 201,683
Other comprehensive income (loss), net of tax 208,427 208,427 5,844 214,271
Comprehensive income － － 193,132 208,427 － 401,559 14,395 415,954
Reclassification to retained earnings 78,824 (78,824) － －
Dividends (77,283) (77,283) (7,107) (84,390)
Purchase of treasury stock (367) (367) (367)
Disposal of treasury stock (696) 696 0 0
Transactions with non-controlling interests and others 641 641 (86) 555
Balance at end of period 175,820 202,777 2,266,490 111,801 (2,595) 2,754,293 116,318 2,870,611
FY '22 (Apr. 1, 2021 - Mar. 31, 2022)
(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 203,482 203,482 14,403 217,885
Other comprehensive income (loss), net of tax 153,444 153,444 7,556 161,000
Comprehensive income － － 203,482 153,444 － 356,926 21,959 378,885
Reclassification to retained earnings 80,717 (80,717) － －
Dividends (85,723) (85,723) (13,673) (99,396)
Purchase of treasury stock (50,526) (50,526) (50,526)
Disposal of treasury stock (1,053) 1,053 0 0
Transactions with non-controlling interests and others 971 971 (3,148) (2,177)
Balance at end of period 175,820 202,695 2,464,966 184,528 (52,068) 2,975,941 121,456 3,097,397
Consolidated Statement of Cash Flows
(In millions of yen)
FY '21 FY '22 B - A
(Apr. 1, 2020- Mar. 31, 2021) (Apr. 1, 2021-Mar. 31, 2022)
(A) (B)
I Cash flows from operating activities
1 Net profit 201,683 217,885 16,202
2 Adjustments to cash flows from operating activities
(1) Depreciation, amortization and other 221,146 210,893 (10,253)
(2) Decrease (increase) in trade receivables 13,005 (7,319) (20,324)
(3) Decrease (increase) in contract assets 70,164 (12,145) (82,309)
(4) Decrease (increase) in inventories (28,115) (183,436) (155,321)
(5) Increase in trade payables 6,938 50,011 43,073
(6) Others, net 57,298 6,482 (50,816)
Cash flows from operating activities 542,119 282,371 (259,748)
II Cash flows from investing activities
1 Purchase of property, plant and equipment (168,920) (134,337) 34,583
2 Proceeds from sale of property, plant and equipment 14,226 3,122 (11,104)
3 Purchase of investment securities and others (net of cash acquired) (15,903) (13,558) 2,345
4 Proceeds from sale of investment securities and others (net of cash disposed) 13,445 53,227 39,782
5 Others, net (19,400) (23,321) (3,921)
Cash flows from investing activities (176,552) (114,867) 61,685
I + II Free cash flow 365,567 167,504 (198,063)
III Cash flows from financing activities
1 Proceeds and repayments of bonds and long-term borrowings (37,389) (34,689) 2,700
2 Increase in short-term borrowings, net 20,225 1,677 (18,548)
3 Repayments of lease liabilities (54,992) (55,896) (904)
4 Dividends paid (77,283) (85,723) (8,440)
5 Purchase of treasury stock (367) (50,526) (50,159)
6 Disposal of treasury stock 0 0 0
7 Others, net (7,546) (16,162) (8,616)
Cash flows from financing activities (157,352) (241,319) (83,967)
IV Effect of exchange rate changes on cash and cash equivalents 21,632 33,588 11,956
V Net increase (decrease) in cash and cash equivalents 229,847 (40,227) (270,074)
VI Cash and cash equivalents at beginning of period 537,559 767,406 229,847
VII Cash and cash equivalents at end of period 767,406 727,179 (40,227)
Consolidated Segment Information (Fiscal 2022)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment FY '21 FY '22 C - A D - B C/A
(Apr. 1, 2020 - (Apr. 1, 2021 - (%)
Mar. 31, 2021) Mar. 31, 2022)
Revenue (A) Operating profit (B) Revenue Operating profit (D)
(C)
Energy and Electric Systems 1,270,287 108,944 1,238,111 62,170 (32,176) (46,774) 97
Industrial Automation Systems 1,248,566 40,582 1,460,368 96,839 211,802 56,257 117
Information and 380,159 16,437 354,128 14,727 (26,031) (1,710) 93
Communication Systems
Electronic Devices 205,260 6,292 241,405 16,814 36,145 10,522 118
Home Appliances 1,038,310 75,760 1,144,788 70,960 106,478 (4,800) 110
Others 603,089 13,628 676,257 21,993 73,168 8,365 112
Subtotal 4,745,671 261,643 5,115,057 283,503 369,386 21,860 108
Eliminations and corporate (554,238) (31,448) (638,299) (31,452) (84,061) (4) －
Consolidated Total 4,191,433 230,195 4,476,758 252,051 285,325 21,856 107
*Notes: 1) Inter-segment revenue are included in the above chart.
2) Gain on sales of land within other profit (loss)
presented in the 'Consolidated Statement of Profit or Loss' is allocated to
each segment.
2. Revenue by Location of Customers
(In millions of yen)
Location of Customers FY '21 FY '22 B - A B/A (%)
(Apr. 1, 2020 - (Apr. 1, 2021 -
Mar. 31, 2021) Mar. 31, 2022)
Revenue (A) % of total revenue Revenue (B) % of total revenue
Japan 2,430,839 58.0 2,332,402 52.1 (98,437) 96
North America 379,253 9.1 461,931 10.3 82,678 122
China 481,882 11.5 588,864 13.2 106,982 122
Other than China 444,658 10.6 526,087 11.7 81,429 118
Asia (excluding Japan) 926,540 22.1 1,114,951 24.9 188,411 120
Europe 391,618 9.3 495,308 11.1 103,690 126
Others 63,183 1.5 72,166 1.6 8,983 114
Total overseas revenue 1,760,594 42.0 2,144,356 47.9 383,762 122
Consolidated total 4,191,433 100.0 4,476,758 100.0 285,325 107
Notes to the Consolidated Financial Statements
(Matters regarding the scope of consolidation and application of the equity
method: changes against the previous fiscal year end)
Number of subsidiaries: 203 (Added: 3; Excluded: 5)
Number of equity method associates: 39 (Added: 1; Excluded: 0)
(Per share information)
FY '21 FY '22
(Apr. 1, 2020 - (Apr. 1, 2021 -
Mar. 31, 2021) Mar. 31, 2022)
Net profit attributable to Mitsubishi Electric Corp. stockholders 193,132 million yen 203,482 million yen
Effect of potential ordinary shares － －
Diluted Net profit attributable to Mitsubishi Electric Corp. stockholders 193,132 million yen 203,482 million yen
Average ordinary shares outstanding 2,145,244,653 shares 2,132,753,929 shares
Cause of dilution
Stock options － －
Adjusted ordinary shares outstanding 2,145,244,653 shares 2,132,753,929 shares
Mitsubishi Electric Corp. stockholders' equity per share 1,283.(88) yen 1,409.(08) yen
Basic earnings per share attributable to Mitsubishi Electric Corp. 90.(03) yen 95.(41) yen
stockholders
Diluted earnings per share attributable to Mitsubishi Electric Corp. 90.(03) yen 95.(41) yen
stockholders
(Notes regarding the going concern assumption)
Not applicable
(Significant subsequent events)
Not applicable
Condensed Quarterly Consolidated Financial Statements
Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed
Quarterly Consolidated Statement of Comprehensive Income (Fourth Quarter,
Fiscal 2022)
(Condensed Quarterly Consolidated Statement of Profit or Loss)
(In millions of yen)
FY '21 FY '22
(Jan. 1, 2021 - (Jan. 1, 2022 -
Mar. 31, 2021) Mar. 31, 2022)
(A) % of total (B) % of total B - A B/A
(%)
Revenue 1,250,822 100.0 1,295,495 100.0 44,673 104
Cost of sales 893,289 71.4 948,771 73.2 55,482 106
Selling, general and 272,789 21.8 282,520 21.8 9,731 104
administrative expenses
Other profit (loss) 7,743 0.6 (2,342) (0.2) (10,085) －
Operating profit 92,487 7.4 61,862 4.8 (30,625) 67
Financial income 4,250 0.3 5,140 0.4 890 121
Financial expenses 764 0.1 773 0.1 9 101
Share of profit of investments accounted for using the equity method 4,428 0.4 6,232 0.5 1,804 141
Profit before income taxes 100,401 8.0 72,461 5.6 (27,940) 72
Income taxes 12,573 1.0 14,163 1.1 1,590 113
Net profit 87,828 7.0 58,298 4.5 (29,530) 66
Net profit attributable to:
Mitsubishi Electric Corp. 85,351 6.8 55,017 4.2 (30,334) 64
stockholders
Non-controlling interests 2,477 0.2 3,281 0.3 804 132
(Condensed Quarterly Consolidated Statement of Comprehensive Income)
(In millions of yen)
FY '21 (A) FY '22 (B) B - A
(Jan. 1, 2021 - (Jan. 1, 2022 -
Mar. 31, 2021) Mar. 31, 2022)
Net profit 87,828 58,298 (29,530)
(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 12,175 (383) (12,558)
comprehensive income
Remeasurements of defined benefit plans 84,501 64,720 (19,781)
Share of other comprehensive income of investments accounted for using the 1,457 122 (1,335)
equity method
Subtotal 98,133 64,459 (33,674)
Items that may be reclassified to net profit
Exchange differences on translating foreign operations 40,365 62,303 21,938
Net changes in the fair value of cash flow hedges (29) 22 51
Share of other comprehensive income of investments accounted for using the 1,702 5,097 3,395
equity method
Subtotal 42,038 67,422 25,384
Total other comprehensive income (loss) 140,171 131,881 (8,290)
Comprehensive income 227,999 190,179 (37,820)
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders 221,032 181,771 (39,261)
Non-controlling interests 6,967 8,408 1,441
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 more than 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 4,476.7 billion yen (U.S.$ 36.7 billion*) in the
fiscal year ended March 31, 2022. For more information, please visit
www.MitsubishiElectric.com
*U.S. dollar amounts are translated from yen at the rate of \122=U.S.$1, the
approximate rate on the Tokyo Foreign Exchange Market on March 31, 2022
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