Mitsubishi Electric Corporation (TOKYO:6503) announced today its consolidated financial results for the first half and second quarter, ended September 30, 2021, of the current fiscal year ending March 31, 2022 (fiscal 2022).

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

www.MitsubishiElectric.com/news

1. Consolidated Half-year Results (April 1, 2021 – September 30, 2021)

The economy in the first half of fiscal 2022, from April through September 2021, generally continued to see recovery in the corporate sector in the U.S., Europe and Japan. The household sector also recovered in the U.S. and Europe due to the progress in the novel coronavirus diseases (COVID-19) vaccinations, while the continuing impact of COVID-19 put downward pressure on recovery of the household sector in Japan. China continued to see recovery in export, while the paces of recovery in manufacturing and the household sector slowed down.

Revenue

Revenue in the first half increased by 236.3 billion yen from the same period of the previous fiscal year to 2,138.3 billion yen due primarily to increased revenue in Industrial Automation Systems, Home Appliances and Electronic Devices 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 semiconductor, electronic components, smartphones and lithium-ion battery worldwide. The automotive equipment business also increased as demand for new cars recovered in all regions except for China. Home Appliances segment increased because demand for air conditioners remained buoyant particularly in Europe and North America. Electronic Devices segment increased due primarily to recovery in demand for power modules.

Operating Profit

Operating profit increased by 76.4 billion yen from the same period of the previous fiscal year to 137.8 billion yen due mainly to increased operating profit in Industrial Automation Systems and Home Appliances segments. Operating profit ratio improved by 3.2% from the same period of the previous fiscal year to 6.4%.

The cost ratio improved by 2.0% from the same period of the previous fiscal year due primarily to higher operating ratio caused by increased revenue of Industrial Automation Systems and Home Appliances segments in addition to the yen depreciating against other currencies. Selling, general and administrative expenses increased by 32.3 billion yen from the same period of the previous fiscal year, but selling, general and administrative expenses to revenue ratio improved by 1.1%. Other profit (loss) increased by 1.9 billion yen from the same period of the previous fiscal year, and other profit (loss) to revenue ratio improved by 0.1%.

Profit before income taxes

Profit before income taxes increased by 72.7 billion yen from the same period of the previous fiscal year to 148.3 billion yen due primarily to an increase in operating profit. Profit before income taxes to revenue ratio was 6.9%.

Net profit attributable to Mitsubishi Electric Corporation stockholders

Net profit attributable to Mitsubishi Electric Corporation stockholders increased by 56.6 billion yen from the same period of the previous fiscal year to 104.8 billion yen due mainly to increased profit before income taxes. Net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 4.9%.

Forecast for Fiscal 2022

Mitsubishi Electric’s business performance for fiscal 2022 is expected to exceed the company’s previous forecast considering changes in exchange rates and latest orders received. As a result, the company’s consolidated earnings forecast for fiscal 2022, ending March 31, 2022, has been revised from the announcement on July 29, 2021 as stated below.

Based on a certain premise, the company 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 its 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/

Consolidated forecast for fiscal 2022

Exchange rates in and after the third quarter of fiscal 2022 is 110 yen to the U.S. dollar, which is 5 yen weaker from the company’s previous announcement; 125 yen to the euro, which is unchanged from the company’s previous announcement; and 17.0 yen to the Chinese yuan, which is 0.5 yen weaker from the company’s previous announcement.

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

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