FIVE-YEAR SUMMARY
Mitsubishi Electric Corporation and Subsidiaries
| Yen (millions) | U.S. dollars (thousands) |
|||||
| Years ended March 31 | 2005 | 2006 | 2007 | 2008 | 2009 | 2009 |
| Summary of Operations | ||||||
Net sales |
¥3,410,685 | ¥3,604,185 | ¥3,855,745 | ¥4,049,818 | ¥3,665,119 | $37,399,173 |
Cost of sales |
2,559,499 | 2,694,985 | 2,831,309 | 2,957,185 | 2,710,976 | 27,663,020 |
Selling, general, administrative and Other expenses |
730,544 | 751,482 | 791,434 | 825,428 | 783,673 | 7,996,663 |
Operating costs |
3,290,043 | 3,446,467 | 3,622,743 | 3,782,613 | 3,525,391 | 35,973,377 |
Operating income |
120,642 | 157,718 | 233,002 | 267,205 | 139,728 | 1,425,796 |
Income before income taxes |
102,316 | 152,326 | 184,776 | 226,612 | 107,928 | 1,101,306 |
Net income |
¥71,175 | ¥95,692 | ¥123,080 | ¥157,977 | ¥12,167 | $124,153 |
| Financial Ratios | ||||||
Return on sales (%) |
2.09 | 2.66 | 3.19 | 3.90 | 0.33 | - |
Return on equity (%) |
10.77 | 11.51 | 12.30 | 15.11 | 1.29 | - |
Return on assets (%) |
2.23 | 2.96 | 3.64 | 4.55 | 0.36 | - |
Equity ratio (%) |
22.79 | 28.43 | 30.68 | 29.60 | 25.48 | - |
| Per-Share Amounts | ||||||
Net income (loss) |
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(yen/U.S. dollars) |
||||||
Basic |
¥33.16 | ¥44.64 | ¥57.34 | ¥73.60 | ¥5.67 | $0.058 |
Diluted |
33.16 | 44.63 | 57.34 | 73.59 | 5.67 | 0.058 |
Cash dividends declared |
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(yen/U.S. dollars) |
¥6 | ¥8 | ¥10 | ¥13 | ¥6 | $0.061 |
- Operating income is presented as net sales less cost of sales, selling, general, administrative and R&D expenses, and loss on impairment of long-lived assets. Total operating income for each segment conforms to above mentioned operating income. Business restructuring expenses are shown as non-operating expenses.
- R&D expenditure includes elements spent on quality improvements, which constitute manufacturing costs.
- U.S. dollar amounts are translated from yen at the rate of ¥98=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2009.
- The Company has 147 consolidated subsidiaries and 42 equity-method companies as of March 31, 2009.
Overview
In fiscal 2009, the fiscal year ended March 31, 2009, business conditions were generally weak. While the downturn in the six-month period ended September 30, 2008, was relatively mild, the adverse effects of a financial crisis that spilled increasingly over into the real economy triggered a rapid deterioration in the second half. In addition to a heightened sense of uncertainty surrounding financial markets, particularly in Europe and the United States, rapid appreciation in the value of the yen against most major currencies also placed downward pressure on the business environment.
In its efforts to address the aforementioned circumstances, the Mitsubishi Electric Group has continued to ratchet up its fixed expense and other cost reduction activities with the aim of maintaining and improving its business performance. At the same time, Mitsubishi Electric has promoted longstanding efforts to strengthen its business structure through Groupwide management improvement programs, growth strategies and structural reform initiatives.
However, business conditions deteriorated from the second half of the fiscal year under review, while performance of Mitsubishi Electric's equity method-companies worsened. These factors significantly impacted the Mitsubishi Electric Group, which recorded net sales of ¥3,665.1 billion, operating income of ¥139.7 billion, income before income taxes of ¥107.9 billion and net income of ¥12.2 billion for the fiscal year ended March 31, 2009.
Financial Position
The outstanding balance of debt and corporate bonds rose ¥127.1 billion compared with the end of the previous fiscal year to ¥677.9 billion. As a result, the ratio of interest-bearing debt to total assets was 20.3%, an increase of 4.5 points year on year. On the other hand, trade payables decreased ¥145.5 billion and accrued income taxes contracted by ¥45.5 billion. Taking into account the aforementioned factors and an increase in retirement and severance benefits of ¥119.3 billion due to a drop in stock prices that resulted in a shortfall in pension reserves, total liabilities climbed ¥38.3 billion.
Capital Expenditures
In line with the three viewpoints of its "Balanced Corporate Management" policy, namely, "Growth," "Profitability and Efficiency" and "Soundness," the Mitsubishi Electric Group undertook investments aimed at advancing and accelerating efforts to "make strong businesses stronger." Accordingly, the Group directed its capital investment mainly toward the areas of energy and electric systems and photovoltaic power generation systems. At the same time, we continued to reinforce our solid business platform through the careful selection and concentration of investments from a "Profitability and Efficiency" perspective.
Cash Flows
In the fiscal year ended March 31, 2009, net cash provided by operating activities amounted to ¥181.1 billion, while net cash used in investing activities was ¥214.9 billion. As a result, free cash flow was negative ¥33.8 billion, down ¥160.3 billion compared with the previous fiscal year. Taken into account along with net cash provided by financing activities of ¥84.9 billion, these cash flows resulted in fiscal year-end cash and cash equivalents of ¥358.6 billion, an increase of ¥24.3 billion year on year.
