REG - Mitsubishi Elect. - Half-year Report
FOR IMMEDIATE RELEASE
No. 3381
Investor Relations Inquiries
Media Inquiries
Investor Relations Group, Corporate Finance Division
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Mitsubishi Electric Corporation
Mitsubishi Electric Corporation
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Mitsubishi Electric Announces Consolidated Financial Results
for the First Half and Second Quarter of Fiscal 2021
TOKYO, October 29, 2020 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated financial results for the first half and second quarter, ended September 30, 2020, of the current fiscal year ending March 31, 2021 (fiscal 2021).
1. Consolidated Half-year Results (April 1, 2020 - September 30, 2020)
Revenue:
1,902.0
billion yen
(13% decrease from the same period last year)
Operating profit:
61.3
billion yen
(46% decrease from the same period last year)
Profit before income taxes:
75.6
billion yen
(39% decrease from the same period last year)
Net profit attributable to Mitsubishi Electric Corp. stockholders:
48.2
billion yen
(47% decrease from the same period last year)
The economy in the first half of fiscal 2021, from April through September 2020, generally saw a severe business environment without an economic recovery in Japan, the U.S. and Europe due to the continuing impact of the novel coronavirus diseases (COVID-19), although it is under way owing to the restart of the economy. Meanwhile, China experienced a gradual recovery mainly owing to an increase in capital expenditures for fixed assets, particularly in public investment, as an effect of political measures.
Revenue
Revenue in the first half decreased by 280.5 billion yen from the same period of the previous fiscal year to 1,902.0 billion yen as a result of decreased revenue in all segments. Energy and Electric Systems segment saw a decrease in the building systems business in Japan and Asia due to the impact of COVID-19 causing global stagnation of urban development and construction, while the social infrastructure systems business increased particularly in the transportations systems and the power systems businesses in Japan. Industrial Automation Systems segment saw a significant decrease of the automotive equipment business due to decreased demand for new cars in all regions except for China. The factory automation systems business also decreased due to stagnation in automotive-related demand worldwide and machinery- and building-related demand in Japan. Home Appliances segment saw a decrease in air conditioners due to limited economic activities outside Japan and restrained capital expenditures worldwide.
Operating Profit
Operating profit decreased by 52.8 billion yen from the same period of the previous fiscal year to 61.3 billion yen due mainly to decreased profits in Industrial Automation Systems and Home Appliances segments, while profits increased in Energy and Electric Systems, Electronic Devices and Information and Communication Systems segments. Operating profit ratio decreased by 2.0% from the same period of the previous fiscal year to 3.2%.
The cost ratio increased by 1.2% from the same period of the previous fiscal year due primarily to lowered operation caused by decreased revenue of Industrial Automation Systems and Home Appliances segments. Selling, general and administrative expenses decreased by 50.3 billion yen from the same period of the previous fiscal year due mainly to reduced cost, but selling, general and administrative expenses to revenue ratio increased by 0.8%. Other profit (loss) decreased by 0.2 billion yen from the same period of the previous fiscal year, while other profit (loss) to revenue ratio remained substantially unchanged from the same period of the previous fiscal year.
Profit before income taxes
Profit before income taxes decreased by 48.3 billion yen from the same period of the previous fiscal year to 75.6 billion yen due primarily to a decrease in operating profit despite an improvement in non-operating expenses owing to decreased loss on foreign exchange. Profit before income taxes to revenue ratio was 4.0%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders decreased by 43.0 billion yen from the same period of the previous fiscal year to 48.2 billion yen due mainly to decreased profit before income taxes. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 2.5%.
Consolidated Financial Results by Business Segment (First Half, Fiscal 2021)
Energy and Electric Systems
Revenue:
564.7
billion yen
(5% decrease from the same period last year which recorded 592.1 billion yen)
Operating profit:
26.2
billion yen
(5.8 billion yen increase from the same period last year which recorded 20.4 billion yen)
The market of the social infrastructure systems business saw a decrease in demand relating to power generation worldwide and the reconsideration of the capital expenditure plans by railway companies in Japan due to the impact of COVID-19, while investment in public utilities for preventing and reducing disaster risks remained buoyant in Japan. In this environment, the business saw a decrease in orders from the same period of the previous fiscal year due primarily to decreases in the transportation systems and the power systems businesses in Japan, while revenue increased due mainly to progress in orders already received for projects in the transportation systems and the power systems businesses in Japan.
The market of the building systems business saw decreased demand in new installations and renewals of elevators and escalators worldwide due to global stagnation and delay in urban development and construction caused by 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 Japan and Asia.
As a result, revenue for this segment decreased by 5% from the same period of the previous fiscal year to 564.7 billion yen.
Operating profit increased by 5.8 billion yen from the same period of the previous fiscal year to 26.2 billion yen due mainly to a shift in project portfolios and cost improvement.
Industrial Automation Systems
Revenue:
548.6
billion yen
(20% decrease from the same period last year which recorded 686.2 billion yen)
Operating profit:
1.7
billion yen
(39.5 billion yen decrease from the same period last year which recorded 41.2 billion yen)
The market of the factory automation systems business saw continuing stagnation in automotive-related demand worldwide and machinery- and building-related demand in Japan due to the impact of COVID-19, while demand relating to 5G and semiconductor increased and there was demand relating to increased mask production outside Japan. In this environment, the business saw decreases in both orders and revenue from the same period of the previous fiscal year.
The market of the automotive equipment business saw a decrease in demand for new cars in all regions except for China 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 a decrease in electrical components despite an increase in electric-vehicle related equipment such as motors and inverters.
As a result, revenue for this segment decreased by 20% from the same period of the previous fiscal year to 548.6 billion yen due mainly to a decrease in the automotive equipment business.
Operating profit decreased by 39.5 billion yen from the same period of the previous fiscal year to 1.7 billion yen due primarily to decreased revenue.
Information and Communication Systems
Revenue:
165.5
billion yen
(17% decrease from the same period last year which recorded 199.0 billion yen)
Operating profit:
4.8
billion yen
(0.1 billion yen increase from the same period last year which recorded 4.7 billion yen)
The market of the information systems and service business saw delays and cancellations of system development projects, particularly in the manufacturing industry, 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 mainly to a decrease in the system integrations business.
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 project for the defense systems business.
As a result, revenue for this segment decreased by 17% from the same period of the previous fiscal year to 165.5 billion yen.
Operating profit increased by 0.1 billion yen from the same period of the previous fiscal year to a 4.8 billion yen due mainly to a shift in project portfolios.
Electronic Devices
Revenue:
100.5
billion yen
(2% decrease from the same period last year which recorded 103.1 billion yen)
Operating profit:
5.8
billion yen
(4.7 billion yen increase from the same period last year which recorded 1.0 billion yen)
The market of the electronic devices business saw a slowdown in demand for power modules used in automotive and industrial applications, while demand for high frequency and optical devices relating to next-generation data centers remained buoyant. In this environment, the business saw a decrease in orders from the same period of the previous fiscal year due primarily to decreases in power and TFT-LCD modules, despite an increase in high frequency and optical devices, particularly in optical communication devices. Revenue also decreased by 2% from the same period of the previous fiscal year to 100.5 billion yen.
Operating profit increased by 4.7 billion yen from the same period of the previous fiscal year to 5.8 billion yen due mainly to a shift in product mix and cost improvement.
Home Appliances
Revenue:
503.7
billion yen
(13% decrease from the same period last year which recorded 581.7 billion yen)
Operating profit:
35.5
billion yen
(17.6 billion yen decrease from the same period last year which recorded 53.2 billion yen)
The market of the home appliances business saw a decrease in demand for air conditioners globally due primarily to the impact of COVID-19 causing lockdowns and considerable limitation of economic activities outside Japan and restrained capital expenditure worldwide. Meanwhile, there was some demand for consumer electronics during stay-at-home period. In this environment, the business saw a decrease in revenue by 13% from the same period of the previous fiscal year to 503.7 billion yen due primarily to a decrease in air conditioners.
Operating profit decreased by 17.6 billion yen from the same period of the previous fiscal year to 35.5 billion yen due mainly to decreased revenue.
Others
Revenue:
272.4
billion yen
(14% decrease from the same period last year which recorded 316.2 billion yen)
Operating profit:
1.9
billion yen
(7.5 billion yen decrease from the same period last year which recorded 9.5 billion yen)
Revenue decreased by 14% from the same period of the previous fiscal year to 272.4 billion yen due primarily to decreases in procurements and logistics for the Mitsubishi Electric Group at affiliated companies.
Operating profit decreased by 7.5 billion yen from the same period of the previous fiscal year to 1.9 billion yen due mainly to decreased revenue.
2. Consolidated Second-quarter Results (July 1, 2020 - September 30, 2020)
Revenue:
1,043.8
billion yen
(8% decrease from the same period last year)
Operating profit:
41.1
billion yen
(31% decrease from the same period last year)
Profit before income taxes:
48.5
billion yen
(24% decrease from the same period last year)
Net profit attributable to Mitsubishi Electric Corp. stockholders:
30.3
billion yen
(37% decrease from the same period last year)
Revenue
Revenue in the second quarter decreased by 87.8 billion yen from the same period of the previous fiscal year to 1,043.8 billion yen as a result of decreased revenue in all segments. Energy and Electric Systems segment saw a decrease in the building systems business in Japan and Asia due to the continuing impact of COVID-19, while the social infrastructure systems business increased particularly in the transportations systems, the power systems and the public utility systems businesses in Japan. Industrial Automation Systems segment saw a decrease of the automotive equipment business due to decreased demand for new cars, although the number increased compared to the first quarter. The factory automation systems business also decreased due to continuing stagnation in automotive-related demand worldwide and machinery- and building-related demand in Japan. Home Appliances segment saw a decrease in air conditioners as demand for industrial air conditioners continued to decrease due to limited economic activities outside Japan and restrained capital expenditures worldwide, while demand for residential air conditioners increased compared to the first quarter.
Operating Profit
Operating profit decreased by 18.1 billion yen from the same period of the previous fiscal year to 41.1 billion yen due mainly to decreased profit in Industrial Automation Systems and Energy and Electric Systems segments, while profit increased in Electronic Devices and Information and Communication Systems segments. Operating profit ratio decreased by 1.3% from the same period of the previous fiscal year to 3.9%.
The cost ratio increased by 1.4% from the same period of the previous fiscal year due primarily to lowered operation caused by decreased revenue of Industrial Automation Systems segment. Selling, general and administrative expenses decreased by 22.6 billion yen from the same period of the previous fiscal year due mainly to reduced cost, and selling, general and administrative expenses to revenue ratio improved by 0.3%. Other profit (loss) deteriorated by 1.0 billion yen from the same period of the previous fiscal year, while other profit (loss) to revenue ratio deteriorated by 0.2%.
Profit before income taxes
Profit before income taxes decreased by 15.7 billion yen from the same period of the previous fiscal year to 48.5 billion yen due primarily to a decrease in operating profit despite an improvement in non-operating expenses owing to decreased loss on foreign exchange. Profit before income taxes to revenue ratio was 4.7%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders decreased by 18.1 billion yen from the same period of the previous fiscal year to 30.3 billion yen due mainly to decreased profit before income taxes. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 2.9%.
Consolidated Financial Results by Business Segment (Second Quarter, Fiscal 2021)
Energy and Electric Systems
Revenue:
298.9
billion yen
(5% decrease from the same period last year which recorded 316.2 billion yen)
Operating profit:
7.6
billion yen
(3.6 billion yen decrease from the same period last year which recorded 11.2 billion yen)
The market of the social infrastructure systems business saw a decrease in demand relating to power generation worldwide and the reconsideration of the capital expenditure plans by railway companies in Japan due to the impact of COVID-19, while investment in public utilities for preventing and reducing disaster risks remained buoyant in Japan. In this environment, the business saw a decrease in orders from the same period of the previous fiscal year due primarily to decreases in the transportation systems and the power systems businesses in Japan, while revenue increased due mainly to progress in orders already received for projects in the transportation systems, the power systems and the public utility systems businesses in Japan.
The market of the building systems business saw decreased demand in new installations and renewals of elevators and escalators worldwide due to global stagnation and delay in urban development and construction caused by 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 Japan and Asia.
As a result, revenue for this segment decreased by 5% from the same period of the previous fiscal year to 298.9 billion yen.
Operating profit increased by 3.6 billion yen from the same period of the previous fiscal year to 7.6 billion yen mainly due to a decrease in revenue.
Industrial Automation Systems
Revenue:
312.3
billion yen
(12% decrease from the same period last year which recorded 353.9 billion yen)
Operating profit:
5.1
billion yen
(14.9 billion yen decrease from the same period last year which recorded 20.0 billion yen)
The market of the factory automation systems business saw continuing stagnation in automotive-related demand worldwide and machinery- and building-related demand in Japan due to the impact of COVID-19, while demand relating to 5G and semiconductor increased. In this environment, the business saw decreases in both orders and revenue from the same period of the previous fiscal year.
The market of the automotive equipment business saw a decrease in demand for new cars worldwide compared to the same period of the previous fiscal year due to the impact of COVID-19, while the number increased in China compared to the period and worldwide compared to the first quarter. In this environment, the business saw decreases in both orders and revenue from the same period of the previous fiscal year due primarily to a decrease in electrical components despite an increase in electric-vehicle related equipment such as motors and inverters.
As a result, revenue for this segment decreased by 12% from the same period of the previous fiscal year to 312.3 billion yen due mainly to a decrease in the automotive equipment business.
Operating profit decreased by 14.9 billion yen from the same period of the previous fiscal year to 5.1 billion yen due primarily to decreased revenue.
Information and Communication Systems
Revenue:
102.2
billion yen
(9% decrease from the same period last year which recorded 112.6 billion yen)
Operating profit:
5.4
billion yen
(2.0 billion yen increase from the same period last year which recorded 3.3 billion yen)
The market of the information systems and service business saw delays and cancellations of system development projects, particularly in the manufacturing industry, 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 mainly to a decrease in the system integrations business.
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 defense systems business, but an increase in revenue from the same period of the previous fiscal year due mainly to an increase in large-scale projects for the space systems business.
As a result, revenue for this segment decreased by 9% from the same period of the previous fiscal year to 102.2 billion yen.
Operating profit increased by 2.0 billion yen from the same period of the previous fiscal year to a 5.4 billion yen due mainly to shift in project portfolios.
Electronic Devices
Revenue:
50.8
billion yen
(3% decrease from the same period last year which recorded 52.1 billion yen)
Operating profit:
2.7
billion yen
(2.2 billion yen increase from the same period last year which recorded 0.4 billion yen)
The market of the electronic devices business saw a slowdown in demand for power modules used in industrial applications, while demand for high frequency and optical devices relating to next-generation data centers remained buoyant. In this environment, the business saw a decrease in orders from the same period of the previous fiscal year due primarily to decreases in power modules used in industrial applications and TFT-LCD modules, despite an increase in high frequency and optical devices, particularly in optical communication devices. Revenue also decreased by 3% from the same period of the previous fiscal year to 50.8 billion yen.
Operating profit increased by 2.2 billion yen from the same period of the previous fiscal year to 2.7 billion yen due mainly to a shift in product mix and cost improvement.
Home Appliances
Revenue:
266.3
billion yen
(7% decrease from the same period last year which recorded 285.7 billion yen)
Operating profit:
22.0
billion yen
(Unchanged from the same period last year which recorded 22.0 billion yen)
The market of the home appliances business saw a decrease in demand for industrial air conditioners due primarily to the impact of COVID-19 causing restrained capital expenditure worldwide, while demand for residential air conditioners increased compared to the first quarter. In this environment, the business saw a decrease in revenue by 7% from the same period of the previous fiscal year to 266.3 billion yen due primarily to a decrease in air conditioners.
Operating profit was unchanged from the same period of the previous fiscal year due mainly to cost improvement despite a decrease in revenue.
Others
Revenue:
147.0
billion yen
(12% decrease from the same period last year which recorded 166.7 billion yen)
Operating profit:
3.3
billion yen
(4.0 billion yen decrease from the same period last year which recorded 7.3 billion yen)
Revenue decreased by 12% from the same period of the previous fiscal year to 147.0 billion yen due primarily to decreases in procurements and logistics for the Mitsubishi Electric Group at affiliated companies.
Operating profit decreased by 4.0 billion yen from the same period of the previous fiscal year to 3.3 billion yen due mainly to decreased 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 50.2 billion yen to 4,359.4 billion yen. The change in balance of total assets was mainly attributable to a decrease in trade receivables by 190.2 billion yen, while cash and cash equivalents increased by 105.3 billion yen and other financial assets also increased by 44.2 billion yen.
Trade receivables decreased due primarily to credit collection for projects from the previous fiscal year and decreased revenue caused by the impact of COVID-19. Cash and cash equivalents increased owing to borrowings made for the purpose of securing liquidity on hand to be prepared for a deterioration in balance caused by COVID-19.
Total liabilities decreased from the end of the previous fiscal year by 73.9 billion yen to 1,796.9 billion yen due primarily to decreases in trade payables by 88.7 billion yen and other current liabilities by 30.0 billion yen, while balances of bonds, borrowings and lease liabilities increased by 47.2 billion yen. Bonds and borrowings increased by 44.5 billion yen from the end of the previous fiscal year to 311.5 billion yen, with the ratio of bonds and borrowings to total assets recording 7.1%, representing a 1.0 point increase compared to the end of the previous fiscal year.
Mitsubishi Electric Corporation stockholders' equity increased by 25.5 billion yen compared to the end of the previous fiscal year to 2,455.2 billion yen. The stockholders' equity ratio was recorded at 56.3%, representing a 1.2 point increase compared to the end of the previous fiscal year. These changes referred to above primarily result from increases from recording a net profit attributable to Mitsubishi Electric Corporation stockholders of 48.2 billion yen and accumulated other comprehensive income by 37.7 billion yen mainly reflecting a rise in stock prices, despite a decrease in dividend payment of 55.8 billion yen.
An analysis on the status of cash flow on a consolidated basis
Cash flows from operating activities for the first half of fiscal 2021 was 256.9 billion yen (cash in), while cash flows from investing activities was 107.8 billion yen (cash out). As a result, free cash flow was 149.0 billion yen (cash in). Cash flows from financing activities was 45.4 billion yen (cash out), and cash and cash equivalents at end of period increased from the end of the previous fiscal year by 105.3 billion yen to 642.9 billion yen.
Net cash provided by operating activities increased by 42.5 billion yen from the same period of the previous fiscal year due primarily to progress in credit collection for projects from the previous fiscal year and reduced use of materials and cost to deal with decreased revenue for the first half of fiscal 2021, despite decreased profit.
Net cash used in investing activities decreased by 7.8 billion yen from the same period of the previous fiscal year due mainly to a decrease in purchase of investment securities and property, plant and equipment.
Net cash used in financing activities decreased by 41.8 billion yen from the same period of the previous fiscal year due primarily to an increase in short-term borrowings and a decrease in repayment of long-term borrowings.
Forecast for Fiscal 2021(year ending March 31, 2021)
Revenue for fiscal 2021 is expected to fall below the company's previous forecast, due to the delay in an economic recovery caused by the continuing impact of COVID-19, while the profits are expected to exceed the company's previous forecast due to the accumulation of positive impact of various business improvement measures, particularly cost reduction. As a result, the company's consolidated earnings forecast for fiscal 2021 has been revised from the announcement on July 30, 2020 as stated below.
The forecast may be modified depending on the global and local situation of the continuing impact and the re-expansion of COVID-19.
Consolidated forecast for fiscal 2021
Consolidated
Previous forecast (announced
July 30)Current forecast
Change from previous forecast
Revenue:
4,100.0 billion yen
4,050.0 billion yen
(9% decrease from fiscal 2020)
Down 50.0 billion yen, or 1%
Operating profit:
120.0 billion yen
150.0 billion yen
(42% decrease from fiscal 2020)
Up 30.0 billion yen, or 25%
Profit before income taxes:
145.0 billion yen
175.0 billion yen
(38% decrease from fiscal 2020)
Up 30.0 billion yen, or 21%
Net profit attributable to Mitsubishi Electric Corp. stockholders:
100.0 billion yen
120.0 billion yen
(46% decrease from fiscal 2020)
Up 20.0 billion yen, or 20%
Exchange rates in and after the third quarter of fiscal 2021 is 105 yen to the U.S. dollar, which is unchanged from the previous announcement; 120 yen to the euro, which is 5 yen weaker from the company's previous announcement; and 15.0 yen to the Chinese yuan, which is unchanged from the previous announcement.
Note: The results forecast above is based on assumptions deemed reasonable by the company at the present time, and actual results may differ significantly from forecasts. Please refer to the cautionary statement at the end.
Consolidated Financial Results Summary
1. Consolidated Half-year Results
(In billions of yen except where noted)
FY '20 1st half (A)
(Apr. 1, 2019 - Sept. 30, 2019)FY '21 1st half (B)
(Apr. 1, 2020 - Sept. 30, 2020)
B - A
B/A (%)
Revenue
2,182.5
1,902.0
(280.5)
87
Operating profit
114.2
61.3
(52.8)
54
Profit before income taxes
124.0
75.6
(48.3)
61
Net profit attributable to Mitsubishi Electric Corp. stockholders
91.2
48.2
(43.0)
53
Basic earnings per share attributable to Mitsubishi Electric Corp. stockholders
42.54 yen
22.48 yen
(20.06 yen)
53
2. Consolidated Second-quarter Results
(In billions of yen except where noted)
FY '20 Q2 (A)
(Jul. 1, 2019 -
Sept. 30, 2019)FY '21 Q2 (B)
(Jul. 1, 2020 - Sept. 30, 2020)
B - A
B/A
(%)
Revenue
1,131.7
1,043.8
(87.8)
92
Operating profit
59.3
41.1
(18.1)
69
Profit before income taxes
64.2
48.5
(15.7)
76
Net profit attributable to Mitsubishi Electric Corp. stockholders
48.4
30.3
(18.1)
63
Basic earnings per share attributable to Mitsubishi Electric Corp. stockholders
22.60 yen
14.15 yen
(8.45 yen)
63
Notes:
1) Consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS).
2) The company has 206 consolidated subsidiaries.
Condensed Quarterly Consolidated Financial Statements
Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income (First Half, Fiscal 2021)
(Condensed Quarterly Consolidated Statement of Profit or Loss)
(In millions of yen)
FY '20 1st half
(Apr. 1, 2019 -
Sept. 30, 2019)
FY '21 1st half
(Apr. 1, 2020 -
Sept. 30, 2020)
(A)
% of total
(B)
% of total
B - A
B/A
(%)
Revenue
2,182,528
100.0
1,902,024
100.0
(280,504)
87
Cost of sales
1,562,361
71.6
1,384,823
72.8
(177,538)
89
Selling, general and
administrative expenses
506,870
23.2
456,533
24.0
(50,337)
90
Other profit (loss)
933
0.0
686
0.0
(247)
74
Operating profit
114,230
5.2
61,354
3.2
(52,876)
54
Financial income
5,988
0.3
5,651
0.3
(337)
94
Financial expenses
5,605
0.2
1,893
0.1
(3,712)
34
Share of profit of investments accounted for using the
equity method9,409
0.4
10,574
0.6
1,165
112
Profit before income taxes
124,022
5.7
75,686
4.0
(48,336)
61
Income taxes
25,591
1.2
24,284
1.3
(1,307)
95
Net profit
98,431
4.5
51,402
2.7
(47,029)
52
Net profit attributable to:
Mitsubishi Electric Corp.
stockholders91,253
4.2
48,231
2.5
(43,022)
53
Non-controlling interests
7,178
0.3
3,171
0.2
(4,007)
44
(Condensed Quarterly Consolidated Statement of Comprehensive Income)
(In millions of yen)
FY '20
1st half (A)
(Apr. 1, 2019 -
Sept. 30, 2019)FY '21
1st half (B)
(Apr. 1, 2020 - Sept. 30, 2020)
B - A
Net profit
98,431
51,402
(47,029)
(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 comprehensive income
6,001
29,056
23,055
Share of other comprehensive income of investments accounted for using the equity method
(352)
581
933
Subtotal
5,649
29,637
23,988
Items that may be reclassified to net profit
Exchange differences on translating foreign operations
(31,289)
5,343
36,632
Net changes in the fair value of cash flow hedges
(91)
66
157
Share of other comprehensive income of investments accounted for using the equity method
(2,255)
(1,429)
826
Subtotal
(33,635)
3,980
37,615
Total other comprehensive income (loss)
(27,986)
33,617
61,603
Comprehensive income
70,445
85,019
14,574
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders
66,082
81,602
15,520
Non-controlling interests
4,363
3,417
(946)
Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income (Second Quarter, Fiscal 2021)
(Condensed Quarterly Consolidated Statement of Profit or Loss)
(In millions of yen)
FY '20 Q2
(Jul. 1, 2019 -
Sept. 30, 2019)
FY '21 Q2
(Jul. 1, 2020 -
Sept. 30, 2020)
(A)
% of total
(B)
% of total
B - A
B/A
(%)
Revenue
1,131,764
100.0
1,043,873
100.0
(87,891)
92
Cost of sales
812,492
71.8
764,405
73.2
(48,087)
94
Selling, general and
administrative expenses
259,974
23.0
237,288
22.7
(22,686)
91
Other profit (loss)
21
0.0
(1,026)
(0.2)
(1,047)
－
Operating profit
59,319
5.2
41,154
3.9
(18,165)
69
Financial income
1,689
0.2
835
0.1
(854)
49
Financial expenses
2,845
0.2
1,173
0.0
(1,672)
41
Share of profit of investments accounted for using the
equity method6,114
0.5
7,761
0.7
1,647
127
Profit before income taxes
64,277
5.7
48,577
4.7
(15,700)
76
Income taxes
12,656
1.1
16,907
1.7
4,251
134
Net profit
51,621
4.6
31,670
3.0
(19,951)
61
Net profit attributable to:
Mitsubishi Electric Corp.
stockholders48,476
4.3
30,346
2.9
(18,130)
63
Non-controlling interests
3,145
0.3
1,324
0.1
(1,821)
42
(Condensed Quarterly Consolidated Statement of Comprehensive Income)
(In millions of yen)
FY '20 Q2 (A)
(Jul. 1, 2019 -
Sept. 30, 2019)
FY '21 Q2 (B)
(Jul. 1, 2020 -
Sept. 30, 2020)
B - A
Net profit
51,621
31,670
(19,951)
(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 comprehensive income
9,974
11,734
1,760
Share of other comprehensive income of investments accounted for using the equity method
(287)
743
1,030
Subtotal
9,687
12,477
2,790
Items that may be reclassified to net profit
Exchange differences on translating foreign operations
(12,310)
(6,316)
5,994
Net changes in the fair value of cash flow hedges
(52)
16
68
Share of other comprehensive income of investments accounted for using the equity method
(2,689)
(1,157)
1,532
Subtotal
(15,051)
(7,457)
7,594
Total other comprehensive income (loss)
(5,364)
5,020
10,384
Comprehensive income
46,257
36,690
(9,567)
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders
43,863
36,138
(7,725)
Non-controlling interests
2,394
552
(1,842)
Condensed Quarterly Consolidated Statement of Financial Position
(In millions of yen)
FY '20 (A)
(ended Mar. 31, 2020)
FY ' 21
1st half (B)
(ended Sept. 30, 2020)
B - A
(Assets)
Current assets
2,628,033
2,541,677
(86,356)
Cash and cash equivalents
537,559
642,928
105,369
Trade receivables
900,430
710,148
(190,282)
Contract assets
343,637
321,568
(22,069)
Inventories
693,890
715,689
21,799
Other current assets
152,517
151,344
(1,173)
Non-current assets
1,781,738
1,817,813
36,075
Investments accounted for using the equity method
196,237
194,968
(1,269)
Other financial assets
262,367
306,628
44,261
Property, plant and equipment
854,382
862,763
8,381
Other non-current assets
468,752
453,454
(15,298)
Total assets
4,409,771
4,359,490
(50,281)
(Liabilities)
Current liabilities
1,402,665
1,350,205
(52,460)
Bonds, borrowings and lease liabilities
133,369
199,692
66,323
Trade payables
527,307
438,525
(88,782)
Other current liabilities
741,989
711,988
(30,001)
Non-current liabilities
468,247
446,713
(21,534)
Bonds, borrowings and lease liabilities
243,634
224,527
(19,107)
Net defined benefit liabilities
163,240
173,712
10,472
Other non-current liabilities
61,373
48,474
(12,899)
Total liabilities
1,870,912
1,796,918
(73,994)
(Equity)
Mitsubishi Electric Corp. stockholders' equity
2,429,743
2,455,297
25,554
Common stock
175,820
175,820
－
Capital surplus
202,832
202,270
(562)
Retained earnings
2,071,817
2,059,855
(11,962)
Accumulated other comprehensive income (loss)
(17,802)
19,946
37,748
Treasury stock, at cost
(2,924)
(2,594)
330
Non-controlling interests
109,116
107,275
(1,841)
Total equity
2,538,859
2,562,572
23,713
Total liabilities and equity
4,409,771
4,359,490
(50,281)
Bonds, borrowings and lease liabilities
377,003
424,219
47,216
Excluding lease liabilities
267,008
311,522
44,514
Accumulated other comprehensive income (loss):
Exchange differences on translating foreign operations
(39,519)
(35,774)
3,745
Financial assets measured at fair value through other comprehensive income
21,754
55,703
33,949
Net changes in the fair value of cash flow hedges
(37)
17
54
Condensed Quarterly Consolidated Statement of Changes in Equity
FY '20 1st Half (Apr. 1, 2019 - Sep. 30, 2019)
(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
202,834
1,960,466
63,809
(2,983)
2,399,946
111,209
2,511,155
Cumulative effects of changes in accounting policies
(1,521)
(1,521)
(7)
(1,528)
Adjusted balance at beginning of period
175,820
202,834
1,958,945
63,809
(2,983)
2,398,425
111,202
2,509,627
Comprehensive income
Net profit
91,253
91,253
7,178
98,431
Other comprehensive income (loss), net of tax
(25,171)
(25,171)
(2,815)
(27,986)
Comprehensive income
－
－
91,253
(25,171)
－
66,082
4,363
70,445
Reclassification to retained earnings
1,521
(1,521)
－
－
Dividends
(55,816)
(55,816)
(5,094)
(60,910)
Purchase of treasury stock
(784)
(784)
(784)
Disposal of treasury stock
(844)
844
0
0
Transactions with non-controlling interests and others
－
(925)
(925)
Balance at end of period
175,820
201,990
1,995,903
37,117
(2,923)
2,407,907
109,546
2,517,453
FY '21 1st Half (Apr. 1, 2020 - Sep. 30, 2020)
(In millions of yen)
Mitsubishi Electric Corp. stockholders' equity
Non-controlling interests
Total equity
Common stock
Capital surplus
Retained earnings
Accumulated other comprehensive income (loss)
Treasury stock, at cost
Total
Balance at beginning of period
175,820
202,832
2,071,817
(17,802)
(2,924)
2,429,743
109,116
2,538,859
Comprehensive income
Net profit
48,231
48,231
3,171
51,402
Other comprehensive income (loss), net of tax
33,371
33,371
246
33,617
Comprehensive income
－
－
48,231
33,371
－
81,602
3,417
85,019
Reclassification to retained earnings
(4,377)
4,377
－
－
Dividends
(55,816)
(55,816)
(5,356)
(61,172)
Purchase of treasury stock
(366)
(366)
(366)
Disposal of treasury stock
(696)
696
0
0
Transactions with non-controlling interests and others
134
134
98
232
Balance at end of period
175,820
202,270
2,059,855
19,946
(2,594)
2,455,297
107,275
2,562,572
Condensed Quarterly Consolidated Statement of Cash Flows
(In millions of yen)
FY '20 1st half
(Apr. 1, 2019 - Sept. 30, 2019)
(A)
FY '21 1st half
(Apr. 1, 2020 - Sept. 30, 2020)
(B)
B - A
I
Cash flows from operating activities
1
Net profit
98,431
51,402
(47,029)
2
Adjustments to cash flows from operating activities
(1) Depreciation, amortization and other
98,329
103,412
5,083
(2) Decrease in trade receivables
163,109
192,653
29,544
(3) Decrease (increase) in contract assets
(60,051)
21,994
82,045
(4) Decrease (increase) in inventories
(6,927)
(19,761)
(12,834)
(5) Increase (decrease) in trade payables
(50,058)
(89,907)
(39,849)
(6) Others, net
(28,419)
(2,848)
25,571
Cash flows from operating activities
214,414
256,945
42,531
II
Cash flows from investing activities
1
Purchase of property, plant and equipment
(95,978)
(92,502)
3,476
2
Proceeds from sale of property, plant and equipment
2,438
2,167
(271)
3
Purchase of investment securities (net of cash acquired)
(16,373)
(12,214)
4,159
4
Proceeds from sale of investment securities (net of cash disposed)
6,855
4,046
(2,809)
5
Others, net
(12,606)
(9,354)
3,252
Cash flows from investing activities
(115,664)
(107,857)
7,807
I + II
Free cash flow
98,750
149,088
50,338
III
Cash flows from financing activities
1
Proceeds and repayments of bonds and long-term borrowings
(29,462)
(10,164)
19,298
2
Increase in short-term borrowings, net
29,564
54,663
25,099
3
Repayments of lease liabilities
(26,183)
(27,760)
(1,577)
4
Dividends paid
(55,816)
(55,816)
0
5
Purchase of treasury stock
(784)
(366)
418
6
Disposal of treasury stock
0
0
0
7
Others, net
(4,670)
(6,040)
(1,370)
Cash flows from financing activities
(87,351)
(45,483)
41,868
IV
Effect of exchange rate changes on cash and cash equivalents
(11,453)
1,764
13,217
V
Net increase (decrease) in cash and cash equivalents
(54)
105,369
105,423
VI
Cash and cash equivalents at beginning of period
514,224
537,559
23,335
VII
Cash and cash equivalents at end of period
514,170
642,928
128,758
Consolidated Segment Information (First Half, Fiscal 2021)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment
FY '20 1st half
(Apr. 1, 2019 -
Sept. 30, 2019)
FY '21 1st half
(Apr. 1, 2020 -
Sept. 30, 2020)
C - A
D - B
C/A
(%)
Revenue (A)
Operating profit (B)
Revenue
(C)Operating profit (D)
Energy and Electric Systems
592,110
20,465
564,731
26,277
(27,379)
5,812
95
Industrial Automation Systems
686,266
41,272
548,607
1,766
(137,659)
(39,506)
80
Information and
Communication Systems
199,025
4,705
165,545
4,866
(33,480)
161
83
Electronic Devices
103,149
1,039
100,583
5,802
(2,566)
4,763
98
Home Appliances
581,762
53,206
503,731
35,588
(78,031)
(17,618)
87
Others
316,245
9,521
272,432
1,971
(43,813)
(7,550)
86
Subtotal
2,478,557
130,208
2,155,629
76,270
(322,928)
(53,938)
87
Eliminations and corporate
(296,029)
(15,978)
(253,605)
(14,916)
42,424
1,062
－
Consolidated Total
2,182,528
114,230
1,902,024
61,354
(280,504)
(52,876)
87
*Notes: Inter-segment revenue are included in the above chart.
2. Revenue by Location of Customers
(In millions of yen)
Location of Customers
FY '20 1st half
(Apr. 1, 2019 -
Sept. 30, 2019)
FY '21 1st half
(Apr. 1, 2020 -
Sept. 30, 2020)
B - A
B/A (%)
Revenue (A)
% of total revenue
Revenue (B)
% of total revenue
Japan
1,216,657
55.7
1,080,338
56.8
(136,319)
89
North America
229,758
10.6
175,435
9.2
(54,323)
76
Asia (excluding Japan)
469,759
21.5
433,734
22.8
(36,025)
92
China
221,730
10.2
234,923
12.4
13,193
106
Europe
236,062
10.8
184,272
9.7
(51,790)
78
Others
30,292
1.4
28,245
1.5
(2,047)
93
Total overseas revenue
965,871
44.3
821,686
43.2
(144,185)
85
Consolidated total
2,182,528
100.0
1,902,024
100.0
(280,504)
87
Consolidated Segment Information (Second Quarter, Fiscal 2021)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment
FY '20 Q2
(Jul. 1, 2019 -
Sept. 30, 2019)
FY '21 Q2
(Jul. 1, 2020 -
Sept. 30, 2020)
C - A
D - B
C/A
(%)
Revenue (A)
Operating profit (B)
Revenue
(C)Operating profit (D)
Energy and Electric Systems
316,277
11,269
298,976
7,631
(17,301)
(3,638)
95
Industrial Automation Systems
353,952
20,090
312,376
5,180
(41,576)
(14,910)
88
Information and
Communication Systems
112,616
3,339
102,260
5,429
(10,356)
2,090
91
Electronic Devices
52,195
442
50,872
2,712
(1,323)
2,270
97
Home Appliances
285,758
22,018
266,333
22,036
(19,425)
18
93
Others
166,722
7,370
147,008
3,324
(19,714)
(4,046)
88
Subtotal
1,287,520
64,528
1,177,825
46,312
(109,695)
(18,216)
91
Eliminations and corporate
(155,756)
(5,209)
(133,952)
(5,158)
21,804
51
－
Consolidated Total
1,131,764
59,319
1,043,873
41,154
(87,891)
(18,165)
92
*Notes: Inter-segment revenue are included in the above chart.
2. Revenue by Location of Customers
(In millions of yen)
Location of Customers
FY '20 Q2
(Jul. 1, 2019 -
Sept. 30, 2019)
FY '21 Q2
(Jul. 1, 2020 -
Sept. 30, 2020)
B - A
B/A (%)
Revenue (A)
% of total revenue
Revenue (B)
% of total revenue
Japan
654,200
57.8
600,656
57.5
(53,544)
92
North America
111,758
9.9
101,081
9.7
(10,677)
90
Asia (excluding Japan)
238,947
21.1
227,596
21.8
(11,351)
95
China
112,772
10.0
118,680
11.4
5,908
105
Europe
110,796
9.8
98,685
9.5
(12,111)
89
Others
16,063
1.4
15,855
1.5
(208)
99
Total overseas revenue
477,564
42.2
443,217
42.5
(34,347)
93
Consolidated total
1,131,764
100.0
1,043,873
100.0
(87,891)
92
Notes to the Condensed Consolidated Financial Statements
(Notes regarding the going concern assumption)
Not applicable
(Notes if there is any significant change in Mitsubishi Electric Corp. stockholders' equity)
Not applicable
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 nearly 100 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Mitsubishi Electric enriches society with technology in the spirit of its corporate statement, "Changes for the Better," and environmental statement, "Eco Changes." The company recorded a revenue of 4,462.5 billion yen (U.S.$ 40.9 billion*) in the fiscal year ended March 31, 2020. For more information, please visit www.MitsubishiElectric.com
*U.S. dollar amounts are translated from yen at the rate of \109=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2020
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