RNS Number : 6671J
Mitsubishi Electric Corporation
28 April 2022
 

 

 

 

FOR IMMEDIATE RELEASE

No. 3516

 

 

Investor Relations Inquiries

Media Inquiries

 

 

Investor Relations Group, Corporate Finance Division

Public Relations Division

Mitsubishi Electric Corporation

Mitsubishi Electric Corporation

 

 

Cad.Irg@rk.MitsubishiElectric.co.jp

prd.gnews@nk.MitsubishiElectric.co.jp

 

www.MitsubishiElectric.com/news/

 

Mitsubishi Electric Announces Consolidated Financial Results for Fiscal 2022

 

TOKYO, April 28, 2022 - Mitsubishi Electric Corporation (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)

(Apr. 1, 2020 -

Mar. 31, 2021)

FY '22 (B)

(Apr. 1, 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

108

Net profit attributable to

Mitsubishi Electric Corp.
stockholders

193.1

203.4

10.3

105

Basic earnings per share attributable to Mitsubishi Electric Corp. stockholders

90.03 yen

95.41 yen

5.38 yen

106

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

(Apr. 1, 2020 -

Mar. 31, 2021)

FY '22

(Apr. 1, 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
administrative expenses

953,602

22.8

1,013,674

22.6

60,072

106

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.
stockholders

193,132

4.6

203,482

4.5

10,350

105

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)

(Apr. 1, 2020 -

Mar. 31, 2021)

FY '22 (B)

(Apr. 1, 2021 -

Mar. 31, 2022)

B - A

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 comprehensive income

64,457

6,762

(57,695)

Remeasurements of defined benefit plans

84,501

64,720

(19,781)

Share of other comprehensive income of investments accounted for using the equity method

2,159

342

(1,817)

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 equity method

1,182

9,118

7,936

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)

(ended Mar. 31, 2021)

FY '22 (B) 

(ended Mar. 31, 2022)

B - A

(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

 

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

 

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

(Apr. 1, 2020- Mar. 31, 2021)

(A)

FY '22

(Apr. 1, 2021-Mar. 31, 2022)

(B)

B - A

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

(Apr. 1, 2020 -

Mar. 31, 2021)

FY '22

(Apr. 1, 2021 -

Mar. 31, 2022)

C - A

D - B

C/A

(%)

Revenue (A)

Operating profit (B)

Revenue
(C)

Operating profit (D)

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

Communication Systems

380,159

16,437

354,128

14,727

(26,031)

(1,710)

93

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

(Apr. 1, 2020 -

Mar. 31, 2021)

FY '22

(Apr. 1, 2021 -

Mar. 31, 2022)

B - A

B/A (%)

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

(Apr. 1, 2020 -

Mar. 31, 2021)

FY '22

(Apr. 1, 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. stockholders

90.03 yen

95.41 yen

Diluted earnings per share attributable to Mitsubishi Electric Corp. stockholders

90.03 yen

95.41 yen

 

(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

(Jan. 1, 2021 -

Mar. 31, 2021)

FY '22

(Jan. 1, 2022 -

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
administrative expenses

272,789

21.8

282,520

21.8

9,731

104

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.
stockholders

85,351

6.8

55,017

4.2

(30,334)

64

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)

(Jan. 1, 2021 -

Mar. 31, 2021)

FY '22 (B)

(Jan. 1, 2022 -

Mar. 31, 2022)

B - A

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 comprehensive income

12,175

(383)

(12,558)

Remeasurements of defined benefit plans

84,501

64,720

(19,781)

Share of other comprehensive income of investments accounted for using the equity method

1,457

122

(1,335)

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 equity method

1,702

5,097

3,395

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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