Mitsubishi Electric Announces Consolidated Financial Results for Fiscal 2021

TOKYO–(BUSINESS WIRE)–Mitsubishi Electric Corporation (TOKYO:6503) announced today its consolidated financial results for fiscal 2021 (April 1, 2020- March 31, 2021).

The full document on Mitsubishi Electric�s financial results can be viewed at the following link:

www.MitsubishiElectric.com/news

Consolidated Financial Results

Revenue:		4,191.4		billion yen		(6% decrease from the previous fiscal year)
Operating profit:		230.1		billion yen		(11% decrease from the previous fiscal year)
Profit before income taxes:		258.7		billion yen		(8% decrease from the previous fiscal year)
Net profit attributable to Mitsubishi Electric Corp. stockholders:		193.1		billion yen		(13% decrease from the previous fiscal year)

The economy in fiscal 2021 continued to see recovery in China mainly owing to an increase in capital expenditures for fixed assets, particularly in public investment, as an effect of political measures. Japan, the U.S. and Europe experienced a significant economic slowdown due to the serious impact of the novel coronavirus diseases (COVID-19) in the first quarter, but saw recovery in the corporate sector in general, while the paces of recovery in the household sector varied depending on the situation of the expansion of COVID-19.

Under these circumstances, the Mitsubishi Electric Group has been working even harder than before to promote growth strategies rooted in its advantages, while continuously implementing initiatives to strengthen its competitiveness and business structure.

Revenue

Revenue increased for the second half of fiscal 2021 but decreased in the annual results by 271.0 billion yen from the previous fiscal year to 4,191.4 billion yen as revenue decreased in all segments due to the serious impact of COVID-19 primarily in the first half. Industrial Automation Systems segment saw a decrease in the automotive equipment business due to decreased demand for new cars in all regions except for China. The factory automation systems business remained substantially unchanged from the previous fiscal year due to an increase in demand relating to 5G and semiconductor despite stagnation in automotive-related demand worldwide and machinery- and building-related demand in Japan. Home Appliances segment saw a decrease in a part of air conditioners due to limited economic activities outside Japan and restrained capital expenditures worldwide. Meanwhile, there was some demand for residential air conditioners during stay-at-home period.

Operating Profit

Operating profit increased for the second half but decreased in the annual results by 29.4 billion yen from the previous fiscal year to 230.1 billion yen as operating profit decreased in all segments except for Energy and Electric Systems segment. Operating profit ratio decreased by 0.3% from the previous fiscal year to 5.5% due primarily to decreased revenue.

The cost ratio increased by 0.3% from the previous fiscal year due primarily to lowered operation caused by decreased revenue of Industrial Automation Systems segment despite an improvement in Energy and Electric Systems segment due to a shift in project portfolios. Selling, general and administrative expenses decreased by 63.4 billion yen from the previous fiscal year due mainly to reduced cost, while selling, general and administrative expenses to revenue ratio remained substantially unchanged from the previous fiscal year. Other profit (loss) decreased by 4.9 billion yen from the previous fiscal year due primarily to increased loss on impairment of fixed assets, while other profit (loss) to revenue ratio remained substantially unchanged from the previous fiscal year.

Profit before income taxes

Profit before income taxes decreased by 23.2 billion yen from the previous fiscal year to 258.7 billion yen due mainly to a decrease in operating profit despite an improvement in non-operating expenses owing to improved gain/loss on foreign exchange. 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 decreased by 28.7 billion yen from the previous fiscal year to 193.1 billion yen due primarily to decreased profit before income taxes and the impact of reduced income taxes as a result of the reorganization of its affiliated company outside Japan in the previous fiscal year. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 4.6%.

ROE decreased by 1.7% from the previous fiscal year to 7.5%.

Forecast for Fiscal 2022

The global economy in fiscal 2022 is expected to experience a progress in recovery in general as an effect of political measures in various countries and regions, particularly the U.S. and China, although the impact of COVID-19 on economy remains uncertain.

Under these circumstances, the Mitsubishi Electric Group aims to uplift the profitability of its main businesses by promoting its global operations. The Group also aims to further strengthen its business foundation by accelerating business model transformations with active exploration of open innovations, reinforcing its solution businesses for increasingly diverse social issues, and reviewing its business portfolios for higher profitability and more effective use of business resources.

The current financial performance forecast for fiscal 2022 follows below.

Current consolidated forecast for fiscal 2022

Revenue		4,470.0		billion yen		(7% increase from fiscal 2021)
Operating profit		260.0		billion yen		(13% increase from fiscal 2021)
Profit before income taxes		285.0		billion yen		(10% increase from fiscal 2021)
Net profit attributable to Mitsubishi Electric Corp. stockholders		210.0		billion yen		(9% increase from fiscal 2021)

Exchange rates for this forecast is 105 yen to the U.S. dollar, 125 yen to the euro and 16.5 yen to the Chinese yuan.

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 in the full document.

About Mitsubishi Electric Corporation

With 100 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Mitsubishi Electric enriches society with technology in the spirit of its “Changes for the Better.” The company recorded a revenue of 4,191.4 billion yen (U.S.$ 37.8 billion*) in the fiscal year ended March 31, 2021. For more information, please visit www.MitsubishiElectric.com
*U.S. dollar amounts are translated from yen at the rate of ¥111=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2021

Contacts

Investor Relations Inquiries
Investor Relations Group, Corporate Finance Division

Mitsubishi Electric Corporation

Tel: +81-3-3218-2391

Cad.Irg@rk.MitsubishiElectric.co.jp

Media Inquiries
Sachiko Masuda

Public Relations Division

Mitsubishi Electric Corporation

Tel: +81-3-3218-2848

prd.gnews@nk.MitsubishiElectric.co.jp
www.MitsubishiElectric.com/news/