REG - Mitsubishi Elect. - Half-year Report
28/10/2022 07:01
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RNS Number : 4664E Mitsubishi Electric Corporation 28 October 2022
FOR IMMEDIATE RELEASE No. 3556
Investor Relations Inquiries Media Inquiries
Sachiko Masuda
Investor Relations Group, Corporate Finance Division Public Relations Division
Mitsubishi Electric Corporation Mitsubishi Electric Corporation
Tel: +81-3-3218-2391 Tel: +81-3-3218-2848
Cad.Irg@rk.MitsubishiElectric.co.jp prd.gnews@nk.MitsubishiElectric.co.jp
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www.MitsubishiElectric.com/news/
Mitsubishi Electric Announces Consolidated Financial Results
for the First Half and Second Quarter of Fiscal 2023
TOKYO, October 28, 2022 - Mitsubishi Electric Corporation
(http://www.mitsubishielectric.com/) (TOKYO: 6503) announced today its
consolidated financial results for the first half and second quarter, ended
September 30, 2022, of the current fiscal year ending March 31, 2023 (fiscal
2023).
1. Consolidated Half-year Results (April 1, 2022 - September 30, 2022)
Revenue: 2,339.5 billion yen (9% increase year-on-year)
Operating profit: 80.5 billion yen (42% decrease year-on-year)
Profit before income taxes: 103.1 billion yen (31% decrease year-on-year)
Net profit attributable to 74.8 billion yen (29% decrease year-on-year)
Mitsubishi Electric Corp. stockholders:
The economy in the first half of fiscal 2023, from April through September
2022, generally continued to see recovery in the corporate and household
sectors in the U.S. In China, there was downward pressure due to the impact of
lockdown caused by the expansion of COVID-19, and the pace of subsequent
recovery stayed slow. In Japan, gradual recovery continued primarily in the
household sector. In Europe, the paces of recovery were even slower in the
corporate and household sectors. There was also the impact of the rise in some
material prices and high logistics costs, as well as the prolonged electronic
components shortage.
Revenue
Revenue increased by 201.1 billion yen year-on-year to 2,339.5 billion yen
owing primarily to the weaker yen, despite a decrease in revenue in the
Infrastructure segment. The Life segment saw an increase in the building
systems business in Asia and Japan, and the air conditioning systems &
home products business also increased due mainly to a recovery in demand for
air conditioners in Asia (excluding China), Europe and Japan. The Industry and
Mobility segment saw an increase in the factory automation systems business
due mainly to an increase in global demand for capital expenditures related to
digital equipment and decarbonization, and the automotive equipment business
also increased due to robust demand for electric vehicle-related equipment.
The Business Platform segment saw an increase in the information systems &
network service business due mainly to increases in the IT infrastructure
service and the system integrations businesses. The semiconductor &
devices business also increased due to robust demand for power modules and
optical communication devices.
Operating profit
Operating profit decreased by 57.3 billion yen year-on-year to 80.5 billion
yen due mainly to decreases in the Life segment, the Infrastructure segment
and the Industry and Mobility segment, despite an increase in the Business
Platform segment. Operating profit ratio decreased by 3.0 points year-on-year
to 3.4% due mainly to deteriorated cost ratio.
The cost ratio deteriorated by 2.3 points year-on-year despite the improvement
owing to the weaker yen, as there was the impact of the rise in some material
prices, the Life segment deteriorated due to the lower production level caused
by the rise in logistics costs and the electronic components shortage, and the
profitability of the Infrastructure segment also deteriorated. Selling,
general and administrative expenses increased by 62.0 billion yen
year-on-year, and the selling, general and administrative expenses to revenue
ratio deteriorated by 0.7 points year-on-year. Other profit (loss) and other
profit (loss) to revenue ratio remained substantially unchanged year-on-year.
Profit before income taxes
Profit before income taxes decreased by 45.2 billion yen year-on-year to 103.1
billion yen due primarily to a decrease in operating profit. The profit before
income taxes to revenue ratio was 4.4%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders
decreased by 30.0 billion yen year-on-year to 74.8 billion yen due mainly to a
decrease in profit before income taxes. The net profit attributable to
Mitsubishi Electric Corporation stockholders to revenue ratio was 3.2%.
Consolidated Financial Results by Business Segment (First Half, Fiscal 2023)
Infrastructure
Revenue: 402.0 billion yen (2% decrease year-on-year; recorded 409.5 billion yen)
Operating profit (loss): (15.3 billion yen) (24.1 billion yen decline year-on-year; recorded 8.7 billion yen)
The market for the public utility systems business saw robust investment in
the public utility area outside Japan, while there was a continuing trend of
railway companies in Japan revising their capital expenditure due to the
impact of COVID-19. In this environment, orders won by the business increased
year-on-year due primarily to an increase in the public utility area outside
Japan, while revenue decreased year-on-year due mainly to a decrease in the
transportation systems business in Japan.
The market for the energy systems business continued to see capital
expenditures of power companies in Japan and robust demand for power supply
stabilization in the expansion of renewable energy. In this environment,
orders won by the business increased year-on-year due primarily to increases
in the power distribution and the power generation businesses in Japan, while
revenue decreased year-on-year due mainly to a decrease in the power
generation business in Japan.
The defense & space systems business saw a decrease in orders year-on-year
due primarily to a decrease in large-scale projects for the defense systems
business, while revenue increased year-on-year due mainly to an increase in
large-scale projects for the defense systems business.
As a result, revenue for this segment decreased by 2% year-on-year to 402.0
billion yen.
Operating profit declined by 24.1 billion yen year-on-year to a loss of 15.3
billion yen due primarily to a decrease in revenue, a shift in project
portfolios and lower profitability in the defense & space systems
business.
Industry and Mobility
Revenue: 794.9 billion yen (13% increase year-on-year; recorded 701.8 billion yen)
Operating profit: 43.9 billion yen (11.2 billion yen decrease year-on-year; recorded 55.2 billion yen)
The market for the factory automation systems business saw robust demand
worldwide primarily for capital expenditures related to digital equipment such
as semiconductors and electronic components, as well as products in the
decarbonization area such as lithium-ion batteries. In this environment, the
business saw increases in both orders and revenue year-on-year.
The market for the automotive equipment business saw sales of new cars
remaining substantially unchanged year-on-year and robust demand for electric
vehicle-related equipment in line with the expansion of the electric vehicle
market, despite the semiconductor shortage. In this environment, the business
saw increases in both orders and revenue year-on-year due primarily to the
weaker yen and 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 13% year-on-year to 794.9
billion yen.
Operating profit decreased by 11.2 billion yen year-on-year to 43.9 billion
yen due mainly to the rise in material prices and logistics costs, despite the
weaker yen.
Life
Revenue: 940.1 billion yen (11% increase year-on-year; recorded 846.8 billion yen)
Operating profit: 34.0 billion yen (35.7 billion yen decrease year-on-year; recorded 69.7 billion yen)
The market for the building systems business continued to see recovery from
the sluggish market stemming from COVID-19. In this environment, the business
saw increases in both orders and revenue year-on-year due primarily to the
weaker yen and an increase in Asia and Japan.
The market for the air conditioning systems & home products business saw
recovery from the impact of Shanghai's lockdown and an improvement of the
situation with regard to the electronic components shortage in and after the
second quarter. In this environment, the revenue for the business increased
year-on-year due mainly to the weaker yen and an increase in air conditioners
in Asia (excluding China), Europe and Japan.
As a result, revenue for this segment increased by 11% year-on-year to 940.1
billion yen.
Operating profit decreased by 35.7 billion yen year-on-year to 34.0 billion
yen due primarily to the rise in material prices and logistics costs as well
as lower production level in the first quarter, despite the weaker yen.
Business Platform
Revenue: 206.8 billion yen (10% increase year-on-year; recorded 187.3 billion yen)
Operating profit: 19.4 billion yen (9.8 billion yen increase year-on-year; recorded 9.5 billion yen)
The market for the information systems & network service business saw
robust demand due mainly to the restarts of projects delayed in the COVID-19
pandemic, despite the semiconductor shortage. In this environment, the
business saw an increase in both orders and revenue due mainly to increases in
the IT infrastructure service and the system integrations businesses.
The market for the semiconductor & device business saw robust demand for
power modules used in consumer and industrial applications as well as optical
communication devices. In this environment, orders won by the business
decreased year-on-year due primarily to the end of the TFT-LCD module
business, while revenue increased year-on-year due primarily to the weaker yen
and increases in power modules used in consumer and industrial applications,
as well as high frequency and optical devices, particularly in optical
communication devices.
As a result, revenue for this segment increased by 10% year-on-year to 206.8
billion yen.
Operating profit increased by 9.8 billion yen year-on-year to 19.4 billion yen
due mainly to the weaker yen and an increase in revenue.
Others
Revenue: 393.0 billion yen (14% increase year-on-year; recorded 345.9 billion yen)
Operating profit: 14.3 billion yen (4.8 billion yen increase year-on-year; recorded 9.4 billion yen)
Revenue increased by 14% year-on-year to 393.0 billion yen due primarily to
increases in materials procurement and logistics.
Operating profit increased by 4.8 billion yen year-on-year to 14.3 billion yen
due mainly to an increase in revenue.
2. Consolidated Second-quarter Results (July 1, 2022 - September 30, 2022)
Revenue: 1,271.8 billion yen (19% increase year-on-year)
Operating profit: 46.5 billion yen (15% decrease year-on-year)
Profit before income taxes: 56.2 billion yen (5% decrease year-on-year)
Net profit attributable to 41.3 billion yen (4% decrease year-on-year)
Mitsubishi Electric Corp. stockholders:
Revenue
Revenue increased by 199.9 billion yen year-on-year to 1,271.8 billion yen
owing primarily to the weaker yen.
The Life segment saw an increase in the building systems business due to an
increase in Asia and Japan, and the air conditioning systems & home
products business also increased due mainly to a recovery in air conditioners
in Japan, North America and Asia. The Industry and Mobility segment saw an
increase in the factory automation systems business due to an increase in
global demand primarily for capital expenditures related to digital equipment
and decarbonization, and the automotive equipment business increased due to an
increase in sales of new cars globally year-on-year, particularly in China and
India, and robust demand for electric vehicle-related equipment. The Business
Platform segment saw the information systems & network service business
remaining substantially unchanged year-on-year, and the semiconductor &
device business increased due mainly to robust demand for power modules and
optical communication devices. The Infrastructure segment saw a decrease in
the energy systems business, while the public utility systems business
remained substantially unchanged year-on-year and the defense & space
systems business increased.
Operating profit
Operating profit decreased by 8.5 billion yen year-on-year to 46.5 billion yen
due mainly to decreases in the Infrastructure segment and the Life segment,
despite increases in the Business Platform segment and Industry and Mobility
segment. Operating profit ratio decreased by 1.4 points year-on-year to 3.7%
due mainly to deteriorated cost ratio.
The cost ratio deteriorated by 2.0 points year-on-year despite the improvement
owing to the weaker yen, as there was the impact of the rise in some material
prices, the profitability of the Infrastructure segment deteriorated, and the
Life segment also deteriorated due to the rise in logistics costs. Selling,
general and administrative expenses increased by 40.4 billion yen
year-on-year, but the selling, general and administrative expenses to revenue
ratio improved by 0.5 points year-on-year. Other profit (loss) increased by
0.4 billion yen and other profit (loss) to revenue ratio improved by 0.1
points year-on-year.
Profit before income taxes
Profit before income taxes decreased by 2.6 billion yen year-on-year to 56.2
billion yen due primarily to a decrease in operating profit. The profit before
income taxes to revenue ratio was 4.4%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders
decreased by 1.6 billion yen year-on-year to 41.3 billion yen due mainly to a
decrease in profit before income taxes. The net profit attributable to
Mitsubishi Electric Corporation stockholders to revenue ratio was 3.2%.
Consolidated Financial Results by Business Segment (Second Quarter, Fiscal
2023)
Infrastructure
Revenue: 227.7 billion yen (2% increase year-on-year; recorded 223.1 billion yen)
Operating profit (loss): (12.1 billion yen) (15.1 billion yen decline year-on-year; recorded 3.0 billion yen)
The market for the public utility systems business saw robust investment in
the public utility area outside Japan, while there was a continuing trend of
railway companies in Japan revising their capital expenditure due to the
impact of COVID-19. In this environment, orders won by the business increased
year-on-year due primarily to an increase in the public utility area outside
Japan, while revenue remained substantially unchanged year-on-year.
The market for the energy systems business continued to see capital
expenditures of power companies in Japan and robust demand for power supply
stabilization in the expansion of renewable energy. In this environment,
orders won by the business increased year-on-year due primarily to increases
in the power distribution and the power generation businesses in Japan, while
revenue decreased year-on-year due mainly to a decrease in the power
generation business in Japan.
The defense & space systems business saw a decrease in orders year-on-year
due primarily to a decrease in large-scale projects for the space systems
business, while revenue increased year-on-year due mainly to an increase in
large-scale projects for the defense systems business.
As a result, revenue for this segment increased by 2% year-on-year to 227.7
billion yen.
Operating profit declined by 15.1 billion yen year-on-year to a loss of 12.1
billion yen due primarily to a shift in project portfolios and lower
profitability in the defense & space systems business.
Industry and Mobility
Revenue: 430.4 billion yen (26% increase year-on-year; recorded 340.8 billion yen)
Operating profit: 21.2 billion yen (0.7 billion yen increase year-on-year; recorded 20.5 billion yen)
The market for the factory automation systems business continued to see robust
demand worldwide primarily for capital expenditures related to digital
equipment such as semiconductors and electronic components, as well as
products in the decarbonization area such as lithium-ion batteries. In this
environment, orders won by the business decreased year-on-year due primarily
to a decrease in demand related to smartphones in China, while revenue
increased year-on-year.
The market for the automotive equipment business saw an increase in sales of
new cars globally year-on-year, particularly in China and India, despite the
semiconductor shortage. There was also robust demand for electric
vehicle-related equipment in line with the expansion of the electric vehicle
market. In this environment, the business saw increases in both orders and
revenue year-on-year due primarily to the weaker yen and 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 26% year-on-year to 430.4
billion yen.
Operating profit increased by 0.7 billion yen year-on-year to 21.2 billion yen
due mainly to an increase in revenue, despite the rise in material prices and
logistics costs.
Life
Revenue: 501.7 billion yen (22% increase year-on-year; recorded 411.7 billion yen)
Operating profit: 20.3 billion yen (4.6 billion yen decrease year-on-year; recorded 24.9 billion yen)
The market for the building systems business continued to see recovery from
the sluggish market stemming from COVID-19. In this environment, the business
saw increases in both orders and revenue year-on-year due primarily to the
weaker yen and an increase in Asia and Japan.
The market for the air conditioning systems & home products business saw
recovery from the impact of Shanghai's lockdown and an improvement of the
situation with regard to the electronic components shortage. In this
environment, the revenue for the business increased year-on-year due mainly to
the weaker yen and increase in air conditioners in Japan, North America and
Asia.
As a result, revenue for this segment increased by 22% year-on-year to 501.7
billion yen.
Operating profit decreased by 4.6 billion yen year-on-year to 20.3 billion yen
due primarily to the rise in material prices and logistics costs, despite the
weaker yen.
Business Platform
Revenue: 113.6 billion yen (15% increase year-on-year; recorded 99.1 billion yen)
Operating profit: 12.0 billion yen (6.3 billion yen increase year-on-year; recorded 5.7 billion yen)
The market for the information systems & network service business saw the
impact of the semiconductor shortage, while there was robust demand due mainly
to the restarts of projects delayed in the COVID-19 pandemic. In this
environment, orders won by the business decreased year-on-year due mainly to a
decrease in the system integrations businesses, while revenue remained
substantially unchanged year-on-year.
The market for the semiconductor & device business saw robust demand in
power modules used in consumer and industrial applications as well as optical
communication devices. In this environment, orders won by the business
decreased year-on-year due primarily to a decrease in power modules, while
revenue increased year-on-year due primarily to the weaker yen and increases
in power modules used in consumer and industrial applications as well as high
frequency and optical devices, particularly in optical communication devices.
As a result, revenue for this segment increased by 15% year-on-year to 113.6
billion yen.
Operating profit increased by 6.3 billion yen year-on-year to 12.0 billion yen
due mainly to the weaker yen and an increase in revenue.
Others
Revenue: 213.1 billion yen (15% increase year-on-year; recorded 185.4 billion yen)
Operating profit: 10.3 billion yen (4.7 billion yen increase year-on-year; recorded 5.5 billion yen)
Revenue increased by 15% year-on-year to 213.1 billion yen due primarily to
increases in materials procurement and logistics.
Operating profit increased by 4.7 billion yen year-on-year to 10.3 billion yen
due mainly to an increase in 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 increased by 96.6 billion
yen compared to the end of the previous fiscal year to 5,204.6 billion yen.
The change in balance of total assets was mainly attributable to increases in
inventories by 178.3 billion yen and contract assets by 35.3 billion yen,
despite a decrease in trade receivables by 104.0 billion yen.
Inventories increased due primarily to the weaker
yen, recovery in demand for the Industry and Mobility segment and the Life
segment, as well as the semiconductor and other electronic components
shortage. Trade receivables decreased due mainly to credit collection for
projects from the previous fiscal year.
Total liabilities decreased by 17.0 billion yen compared to the end of the
previous fiscal year to 1,993.5 billion yen due primarily to a decrease in
other current liabilities of 30.6 billion yen, despite an increase in trade
payables of 9.8 billion yen. Bonds and borrowings increased by 0.9 billion yen
compared to the end of the previous fiscal year to 218.0 billion yen, with the
ratio of bonds and borrowings to total assets recording 4.2%, representing a
0.1 point decrease compared to the end of the previous fiscal year.
Mitsubishi Electric Corporation stockholders' equity increased by 109.3
billion yen compared to the end of the previous fiscal year to 3,085.2 billion
yen due mainly to net profit attributable to Mitsubishi Electric Corporation
stockholders of 74.8 billion yen and an increase in accumulated other
comprehensive income of 89.7 billion yen, mainly reflecting the weaker yen,
despite a decrease due primarily to a dividend payment of 54.9 billion yen.
The stockholders' equity ratio was 59.3%, representing a 1.0 point increase
compared to the end of the previous fiscal year.
An analysis on the status of cash flow on a consolidated basis
Cash flows from operating activities for the first half of fiscal 2023 were
50.7 billion yen (cash in), while cash flows from investing activities were
89.8 billion yen (cash out). As a result, free cash flow was 39.0 billion yen
(cash out). Cash flows from financing activities were 91.0 billion yen (cash
out), and cash and cash equivalents at the end of the period decreased by 95.5
billion yen compared to the end of the previous fiscal year to 631.5 billion
yen.
Net cash provided by operating activities decreased
by 114.1 billion yen year-on-year due primarily to a decrease in profit, the
impact of credit collection and an increase in inventories.
Net cash used in investing activities increased by
10.4 billion yen year-on-year due mainly to an increase in purchase of
investment securities primarily for the acquisition of subsidiaries, as well
as the purchase of property, plant and equipment.
Net cash used in financing activities decreased by
41.4 billion yen year-on-year due primarily to an increase in raising
short-term borrowings and a decrease in purchase of treasury stock.
Forecast for Fiscal 2023
The consolidated earnings forecast for fiscal 2023, ending March 31, 2023, has
been revised from the announcement on July 28, 2022, as stated below. Revenue
is expected to exceed the previous announcement due to foreign exchange rates
reconsidered in line with the weaker yen and passing rising components
procurement costs onto prices. Forecasts for profits remain unchanged from the
previous announcement due primarily to the rise in material prices and
logistics costs, semiconductor and electronic components shortages and lower
profitability in the Infrastructure segment.
Consolidated Previous forecast (announced Current forecast Change from previous forecast
on July 28)
Revenue: 4,770.0 billion yen 4,970.0 billion yen (11% increase from fiscal 2022) Up 200.0 billion yen, or 4%
Operating profit: 270.0 billion yen 270.0 billion yen (7% increase from fiscal 2022) Unchanged, or 0%
Profit before income taxes: 295.0 billion yen 295.0 billion yen (5% increase from fiscal 2022) Unchanged, or 0%
Net profit attributable to Mitsubishi Electric Corp. stockholders: 215.0 billion yen 215.0 billion yen (6% increase from fiscal 2022) Unchanged, or 0%
Exchange rates in and after the third quarter of fiscal 2023 are 135 yen to
the U.S. dollar, which is 15 yen weaker than the previous announcement; 135
yen to the euro, which is 5 yen weaker than the previous announcement; and
19.0 yen to the Chinese yuan, which is 1 yen weaker than 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 '22 1(st) half (A) FY '23 1(st) half (B)
(Apr. 1, 2021 - Sept. 30, 2021)
(Apr. 1, 2022 - Sept. 30, 2022)
B - A B/A (%)
Revenue 2,138.3 2,339.5 201.1 109
Operating profit 137.8 80.5 (57.3) 58
Profit before income taxes 148.3 103.1 (45.2) 69
Net profit attributable to Mitsubishi Electric Corp. stockholders 104.8 74.8 (30.0) 71
Basic earnings per share attributable to Mitsubishi Electric Corp. 48.(94) yen 35.(43) yen (13.(51) yen) 72
stockholders
2. Consolidated Second-quarter Results
(In billions of yen except where noted)
FY '22 Q2 (A) FY '23 Q2 (B)
(Jul. 1, 2021 -
(Jul. 1, 2022 - Sept. 30, 2022)
Sept. 30, 2021)
B - A B/A
(%)
Revenue 1,071.9 1,271.8 199.9 119
Operating profit 55.0 46.5 (8.5) 85
Profit before income taxes 58.8 56.2 (2.6) 95
Net profit attributable to Mitsubishi Electric Corp. stockholders 43.0 41.3 (1.6) 96
Basic earnings per share attributable to Mitsubishi Electric Corp. 20.(09) yen 19.(57) yen (0.(52) yen) 97
stockholders
Notes:
1) Consolidated financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS).
2) The company has 210 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
2023)
(Condensed Quarterly Consolidated Statement of Profit or Loss)
(In millions of yen)
FY '22 1(st) half FY '23 1(st) half
(Apr. 1, 2021 - (Apr. 1, 2022 -
Sept. 30, 2021) Sept. 30, 2022)
(A) % of total (B) % of total B - A B/A
(%)
Revenue 2,138,377 100.0 2,339,567 100.0 201,190 109
Cost of sales 1,514,319 70.8 1,710,855 73.1 196,536 113
Selling, general and 488,887 22.9 550,908 23.6 62,021 113
administrative expenses
Other profit (loss) 2,659 0.1 2,699 0.1 40 102
Operating profit 137,830 6.4 80,503 3.4 (57,327) 58
Financial income 4,635 0.2 12,529 0.6 7,894 270
Financial expenses 2,672 0.1 1,627 0.1 (1,045) 61
Share of profit of investments accounted for using the equity method 8,602 0.4 11,706 0.5 3,104 136
Profit before income taxes 148,395 6.9 103,111 4.4 (45,284) 69
Income taxes 34,470 1.6 22,609 1.0 (11,861) 66
Net profit 113,925 5.3 80,502 3.4 (33,423) 71
Net profit attributable to:
Mitsubishi Electric Corp. 104,836 4.9 74,825 3.2 (30,011) 71
stockholders
Non-controlling interests 9,089 0.4 5,677 0.2 (3,412) 62
(Condensed Quarterly Consolidated Statement of Comprehensive Income)
(In millions of yen)
FY '22 FY '23 B - A
1(st) half (A) 1(st) half (B)
(Apr. 1, 2021 - (Apr. 1, 2022 - Sept. 30, 2022)
Sept. 30, 2021)
Net profit 113,925 80,502 (33,423)
(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 11,650 (2,186) (13,836)
comprehensive income
Share of other comprehensive income of investments accounted for using the 577 20 (557)
equity method
Subtotal 12,227 (2,166) (14,393)
Items that may be reclassified to net profit
Exchange differences on translating foreign operations (9,244) 89,343 98,587
Net changes in the fair value of cash flow hedges (57) (155) (98)
Share of other comprehensive income of investments accounted for using the 4,098 10,981 6,883
equity method
Subtotal (5,203) 100,169 105,372
Total other comprehensive income (loss) 7,024 98,003 90,979
Comprehensive income 120,949 178,505 57,556
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders 112,559 165,304 52,745
Non-controlling interests 8,390 13,201 4,811
Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed
Quarterly Consolidated Statement of Comprehensive Income (Second Quarter,
Fiscal 2023)
(Condensed Quarterly Consolidated Statement of Profit or Loss)
(In millions of yen)
FY '22 Q2 FY '23 Q2
(Jul. 1, 2021 - (Jul. 1, 2022 -
Sept. 30, 2021) Sept. 30, 2022)
(A) % of total (B) % of total B - A B/A
(%)
Revenue 1,071,935 100.0 1,271,844 100.0 199,909 119
Cost of sales 766,010 71.5 934,382 73.5 168,372 122
Selling, general and 251,051 23.4 291,550 22.9 40,499 116
administrative expenses
Other profit (loss) 188 0.0 626 0.1 438 333
Operating profit 55,062 5.1 46,538 3.7 (8,524) 85
Financial income 846 0.1 4,032 0.3 3,186 477
Financial expenses 1,534 0.1 900 0.1 (634) 59
Share of profit of investments accounted for using the 4,508 0.4 6,545 0.5 2,037 145
equity method
Profit before income taxes 58,882 5.5 56,215 4.4 (2,667) 95
Income taxes 12,061 1.1 11,376 0.9 (685) 94
Net profit 46,821 4.4 44,839 3.5 (1,982) 96
Net profit attributable to:
Mitsubishi Electric Corp. 43,001 4.0 41,333 3.2 (1,668) 96
stockholders
Non-controlling interests 3,820 0.4 3,506 0.3 (314) 92
(Condensed Quarterly Consolidated Statement of Comprehensive Income)
(In millions of yen)
FY '22 Q2 (A) FY '23 Q2 (B) B - A
(Jul. 1, 2021 - (Jul. 1, 2022 -
Sept. 30, 2021) Sept. 30, 2022)
Net profit 46,821 44,839 (1,982)
(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 13,522 (339) (13,861)
comprehensive income
Share of other comprehensive income of investments accounted for using the 639 (42) (681)
equity method
Subtotal 14,161 (381) (14,542)
Items that may be reclassified to net profit
Exchange differences on translating foreign operations (8,300) 11,114 19,414
Net changes in the fair value of cash flow hedges (53) (94) (41)
Share of other comprehensive income of investments accounted for using the 1,620 7,613 5,993
equity method
Subtotal (6,733) 18,633 25,366
Total other comprehensive income (loss) 7,428 18,252 10,824
Comprehensive income 54,249 63,091 8,842
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders 51,103 58,668 7,565
Non-controlling interests 3,146 4,423 1,277
Condensed Quarterly Consolidated Statement of Financial Position
(In millions of yen)
FY '22 (A) FY '23 B - A
(ended Mar. 31, 2022) 1(st) half (B)
(ended Sept. 30, 2022)
(Assets)
Current assets 3,090,296 3,123,287 32,991
Cash and cash equivalents 727,179 631,587 (95,592)
Trade receivables 944,405 840,397 (104,008)
Contract assets 287,697 323,022 35,325
Inventories 959,660 1,138,040 178,380
Other current assets 171,355 190,241 18,886
Non-current assets 2,017,677 2,081,335 63,658
Investments accounted for using the equity method 221,467 234,745 13,278
Other financial assets 321,056 315,504 (5,552)
Property, plant and equipment 855,746 881,090 25,344
Other non-current assets 619,408 649,996 30,588
Total assets 5,107,973 5,204,622 96,649
(Liabilities)
Current liabilities 1,646,722 1,619,807 (26,915)
Bonds, borrowings and lease liabilities 173,213 167,130 (6,083)
Trade payables 601,606 611,434 9,828
Other current liabilities 871,903 841,243 (30,660)
Non-current liabilities 363,854 373,709 9,855
Bonds, borrowings and lease liabilities 156,248 162,095 5,847
Net defined benefit liabilities 162,353 165,986 3,633
Other non-current liabilities 45,253 45,628 375
Total liabilities 2,010,576 1,993,516 (17,060)
(Equity)
Mitsubishi Electric Corp. stockholders' equity 2,975,941 3,085,257 109,316
Common stock 175,820 175,820 －
Capital surplus 202,695 202,438 (257)
Retained earnings 2,464,966 2,485,597 20,631
Accumulated other comprehensive income (loss) 184,528 274,261 89,733
Treasury stock, at cost (52,068) (52,859) (791)
Non-controlling interests 121,456 125,849 4,393
Total equity 3,097,397 3,211,106 113,709
Total liabilities and equity 5,107,973 5,204,622 96,649
Bonds, borrowings and lease liabilities 329,461 329,225 (236)
Excluding lease liabilities 217,171 218,087 916
Accumulated other comprehensive income (loss):
Exchange differences on translating foreign operations 99,293 192,107 92,814
Financial assets measured at fair value through other comprehensive income 85,204 82,314 (2,890)
Net changes in the fair value of cash flow hedges 31 (160) (191)
Condensed Quarterly Consolidated Statement of Changes in Equity
FY '22 1st Half (Apr. 1, 2021 - Sept. 30, 2021)
(In millions of yen)
Mitsubishi Electric Corp. stockholders' equity Non-controlling interests Total equity
Common stock Capital surplus Retained earnings Accumulated other comprehensive income (loss) Treasury stock, at cost Total
Balance at beginning of period 175,820 202,777 2,266,490 111,801 (2,595) 2,754,293 116,318 2,870,611
Comprehensive income
Net profit 104,836 104,836 9,089 113,925
Other comprehensive income (loss), net of tax 7,723 7,723 (699) 7,024
Comprehensive income － － 104,836 7,723 － 112,559 8,390 120,949
Reclassification to retained earnings 215 (215) － －
Dividends (55,816) (55,816) (9,111) (64,927)
Purchase of treasury stock (16,490) (16,490) (16,490)
Disposal of treasury stock (1,053) 1,053 0 0
Transactions with non-controlling interests and others 235 235 (640) (405)
Balance at end of period 175,820 201,959 2,315,725 119,309 (18,032) 2,794,781 114,957 2,909,738
FY '23 1st Half (Apr. 1, 2022 - Sept. 30, 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 175,820 202,695 2,464,966 184,528 (52,068) 2,975,941 121,456 3,097,397
Comprehensive income
Net profit 74,825 74,825 5,677 80,502
Other comprehensive income (loss), net of tax 90,479 90,479 7,524 98,003
Comprehensive income － － 74,825 90,479 － 165,304 13,201 178,505
Reclassification to retained earnings 746 (746) － －
Dividends (54,940) (54,940) (6,853) (61,793)
Purchase of treasury stock (1,575) (1,575) (1,575)
Disposal of treasury stock (784) 784 0 0
Transactions with non-controlling interests and others 527 527 (1,955) (1,428)
Balance at end of period 175,820 202,438 2,485,597 274,261 (52,859) 3,085,257 125,849 3,211,106
Condensed Quarterly Consolidated Statement of Cash Flows
(In millions of yen)
FY '22 1(st) half FY '23 1(st) half B - A
(Apr. 1, 2021 - Sept. 30, 2021) (Apr. 1, 2022 - Sept. 30, 2022)
(A) (B)
I Cash flows from operating activities
1 Net profit 113,925 80,502 (33,423)
2 Adjustments to cash flows from operating activities
(1) Depreciation, amortization and other 96,331 100,550 4,219
(2) Decrease in trade receivables 188,462 141,318 (47,144)
(3) Decrease (increase) in contract assets (32,207) (33,052) (845)
(4) Decrease (increase) in inventories (99,262) (135,628) (36,366)
(5) Increase (decrease) in trade payables (26,960) (656) 26,304
(6) Others, net (75,370) (102,264) (26,894)
Cash flows from operating activities 164,919 50,770 (114,149)
II Cash flows from investing activities
1 Purchase of property, plant and equipment (65,419) (71,469) (6,050)
2 Proceeds from sale of property, plant and equipment 1,126 3,284 2,158
3 Purchase of investment securities and others (net of cash acquired) (9,210) (19,826) (10,616)
4 Proceeds from sale of investment securities and others (net of cash disposed) 3,953 6,747 2,794
5 Others, net (9,842) (8,586) 1,256
Cash flows from investing activities (79,392) (89,850) (10,458)
I + II Free cash flow 85,527 (39,080) (124,607)
III Cash flows from financing activities
1 Proceeds and repayments of bonds and long-term borrowings (20,359) (15,412) 4,947
2 Increase (decrease) in short-term borrowings, net (3,322) 18,097 21,419
3 Repayments of lease liabilities (27,643) (28,439) (796)
4 Dividends paid (55,816) (54,940) 876
5 Purchase of treasury stock (16,490) (1,575) 14,915
6 Disposal of treasury stock 0 0 (0)
7 Others, net (8,885) (8,777) 108
Cash flows from financing activities (132,515) (91,046) 41,469
IV Effect of exchange rate changes on cash and cash equivalents 1,521 34,534 33,013
V Net increase (decrease) in cash and cash equivalents (45,467) (95,592) (50,125)
VI Cash and cash equivalents at beginning of period 767,406 727,179 (40,227)
VII Cash and cash equivalents at end of period 721,939 631,587 (90,352)
Consolidated Segment Information (First Half, Fiscal 2023)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment FY'22 1(st) half FY'23 1(st) half C - A D - B C/A
(Apr. 1, 2021 - (Apr. 1, 2022 - (%)
Sept. 30, 2021) Sept. 30, 2022)
Revenue (A) Operating profit Revenue Operating profit
(B)
(C)
(loss) (D)
Infrastructure 409,549 8,727 402,004 (15,382) (7,545) (24,109) 98
Industry and Mobility 701,899 55,203 794,961 43,954 93,062 (11,249) 113
Life 846,872 69,777 940,184 34,050 93,312 (35,727) 111
Business Platform 187,316 9,566 206,860 19,447 19,544 9,881 110
Others 345,908 9,445 393,034 14,317 47,126 4,872 114
Subtotal 2,491,544 152,718 2,737,043 96,386 245,499 (56,332) 110
Eliminations and corporate (353,167) (14,888) (397,476) (15,883) (44,309) (995) －
Consolidated total 2,138,377 137,830 2,339,567 80,503 201,190 (57,327) 109
Notes:
1) Business segments have been changed due to the adoption of the new
management structure on April 1, 2022.
Results for FY '22 1(st) half were restated in line with the new
segmentation.
2) Inter-segment revenues are included in the above chart.
2. Revenue by Location of Customers
(In millions of yen)
Location of Customers FY '22 1(st) half FY '23 1(st) half B - A B/A (%)
(Apr. 1, 2021 - (Apr. 1, 2022 -
Sept. 30, 2021) Sept. 30, 2022)
Revenue (A) % of total revenue Revenue (B) % of total revenue
Japan 1,083,544 50.7 1,116,691 47.7 33,147 103
North America 227,473 10.7 292,761 12.5 65,288 129
China 293,882 13.7 293,810 12.6 (72) 100
Other than China 245,763 11.5 309,286 13.2 63,523 126
Asia (excluding Japan) 539,645 25.2 603,096 25.8 63,451 112
Europe 255,107 11.9 287,134 12.3 32,027 113
Others 32,608 1.5 39,885 1.7 7,277 122
Total overseas revenue 1,054,833 49.3 1,222,876 52.3 168,043 116
Consolidated total 2,138,377 100.0 2,339,567 100.0 201,190 109
Consolidated Segment Information (Second Quarter, Fiscal 2023)
1. Revenue and Operating Profit by Business Segment
(In millions of yen)
Business Segment FY '22 Q2 FY '23 Q2 C - A D - B C/A
(Jul. 1, 2021 - (Jul. 1, 2022 - (%)
Sept. 30, 2021) Sept. 30, 2022)
Revenue (A) Operating profit Revenue Operating profit
(B)
(C)
(loss) (D)
Infrastructure 223,166 3,045 227,799 (12,100) 4,633 (15,145) 102
Industry and Mobility 340,814 20,518 430,494 21,229 89,680 711 126
Life 411,716 24,949 501,791 20,318 90,075 (4,631) 122
Business Platform 99,139 5,715 113,601 12,019 14,462 6,304 115
Others 185,431 5,586 213,164 10,319 27,733 4,733 115
Subtotal 1,260,266 59,813 1,486,849 51,785 226,583 (8,028) 118
Eliminations and corporate (188,331) (4,751) (215,005) (5,247) (26,674) (496) －
Consolidated total 1,071,935 55,062 1,271,844 46,538 199,909 (8,524) 119
Notes:
1) Business segments have been changed due to the adoption of the new
management structure on April 1, 2022.
Results for FY '22 Q2 were restated in line with the new segmentation.
2) Inter-segment revenues are included in the above chart.
2. Revenue by Location of Customers
(In millions of yen)
Location of Customers FY '22 Q2 FY '23 Q2 B - A B/A (%)
(Jul. 1, 2021 - (Jul. 1, 2022 -
Sept. 30, 2021) Sept. 30, 2022)
Revenue (A) % of total revenue Revenue (B) % of total revenue
Japan 565,345 52.7 616,150 48.4 50,805 109
North America 110,018 10.3 161,232 12.7 51,214 147
China 138,547 12.9 168,070 13.2 29,523 121
Other than China 124,088 11.6 162,051 12.8 37,963 131
Asia (excluding Japan) 262,635 24.5 330,121 26.0 67,486 126
Europe 117,502 11.0 143,414 11.3 25,912 122
Others 16,435 1.5 20,927 1.6 4,492 127
Total overseas revenue 506,590 47.3 655,694 51.6 149,104 129
Consolidated total 1,071,935 100.0 1,271,844 100.0 199,909 119
Notes to the Condensed Consolidated Financial Statements
(Notes regarding the going concern assumption)
Not applicable
Cautionary Statement
While the statements herein, including the forecasts regarding the Mitsubishi
Electric Group, are based on assumptions considered to be reasonable under the
circumstances on the date of announcement, actual results may differ
significantly from forecasts.
The main factors materially affecting the expectations expressed herein
include but are not limited to the following:
(1) Changes in worldwide economic and social conditions, as well as
regulations, taxation and other legislation
(2) Changes in foreign currency exchange rates
(3) Changes in stock markets
(4) Changes in the fund-raising environment
(5) Changes in the supply and demand of products, as well as the material
procurement environment
(6) Establishment of important patents, status of significant licenses and
disputes related to key patents
(7) Litigation and other legal proceedings
(8) Issues related to quality and defects in products or services
(9) Laws, regulations and issues related to the global environment,
especially responses to climate change
(10) Laws, regulations and issues related to human rights
(11) Radical technological innovation, as well as the
development, manufacturing and time-to-market of products using new technology
(12) Business restructuring
(13) Information security incidents
(14) Large-scale disasters, including earthquakes, tsunamis,
typhoons, volcanic eruptions and fires
(15) Social, economic and political upheaval due to heightened
geopolitical risks, war, conflict, terrorism or other factors
(16) Social, economic and political upheaval due to pandemics or
other factors
(17) Important matters related to Mitsubishi Electric
Corporation's directors and executive officers, major shareholders, affiliated
companies and other stakeholders
###
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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