Throughout the fiscal year ended March 31, 2009, the global financial market crisis sent increasingly larger ripples across the world economy. As operating conditions continued their descent in the second half, the decline in business activity became extremely severe. In addition to uncertainties that characterized most major markets, particularly in Europe and the United States, the value of the yen appreciated sharply against the world's principal currencies.

Under these unique conditions, the Mitsubishi Electric Group continued to emphasize Growth, Profitability and Efficiency, and Soundness, the three key viewpoints from which various initiatives emanate, aiming at implementing the overall policy of Balanced Corporate Management. The Group achieved steady progress implementing company-wide management improvement measures, its growth strategy, and diverse structural reforms. In order to address changes in the business environment and to maintain and improve operating performance, the Group also focused efforts to step up fixed and direct input cost reduction initiatives.

Despite these endeavors, the Mitsubishi Electric Group suffered from the considerable effects of a deteriorating general business environment in the second half. Also the slump in equity in earnings of affiliated companies inevitably and negatively affected the Group's performance. As a result, the Mitsubishi Electric Group recorded consolidated net sales of ¥3,665.1 billion in the fiscal year ended March 31, 2009, down 9% compared with the previous fiscal year. From a profit perspective, operating income fell 47% year on year to ¥139.7 billion, for a Group operating income ratio of 3.8%. Meanwhile, net income dropped 92% to ¥12.2 billion. Looking ahead, we will reinforce our goals to consistently achieve all management targets with reference to such indicators as operating income ratio, return on equity and interest-bearing debt to total assets.

Working to refine our robust management structure to be more resilient in today's ever-fluctuating business climate, the Mitsubishi Electric Group will further hone the "manufacturing craftsmanship" capabilities integral to its operations. At the same time, we will promote environment-related business strategies in growth markets and expand business in newly emerging markets. I am confident that such initiatives will enable the Group to grow earnings and increase our corporate value.

As we stride resolutely to achieve these goals, we ask for your continued support and understanding.

The Mitsubishi Electric Group will continually improve its technologies and services by applying creativity to all aspects of our business. By doing so, we enhance the quality of life in our society. To this end, all members of the Group will pursue the following Seven Guiding Principles.

1. Trust

Establish relationships with all stakeholders based on strong mutual trust and respect.

2. Quality

Provide the best products and services with unsurpassed quality.

3. Technology

Pioneer new markets by promoting research and development, and fostering technological innovation.

4. Citizenship

As a global player, contribute to the development of communities and society as a whole.

5. Ethics

Honor high ethical standards in all endeavors.

6. Environment

Respect nature, and strive to protect and improve the global environment.

7. Growth

Assure fair earnings to build a foundation for future growth.