MITSUBISHI ELECTRIC CORPORATIONPUBLIC RELATIONS DIVISION
7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo, 100-8310 JapanFOR IMMEDIATE RELEASE

No. 3223

Investor Relations Inquiries

Media Inquiries

Investor Relations Group, Corporate Finance Division
Mitsubishi Electric Corporation
Cad.Irg@rk.MitsubishiElectric.co.jp

Public Relations Division
Mitsubishi Electric Corporation
prd.gnews@nk.MitsubishiElectric.co.jp
www.MitsubishiElectric.com/news/

Mitsubishi Electric Announces Consolidated Financial Results
for the First Half and Second Quarter of Fiscal 2019TOKYO, October 29, 2018 – Mitsubishi Electric Corporation (TOKYO: 6503) announced today its consolidated
financial results for the first half and second quarter, ended September 30, 2018, of the current fiscal year ending
March 31, 2019 (fiscal 2019).
1. Consolidated Half-year Results (April 1, 2018 – September 30, 2018)
Net sales:
2,170.1 billion yen (3% increase from the same period last year)
Operating income:
125.9 billion yen (18% decrease from the same period last year)
Income before income taxes:
141.2 billion yen (15% decrease from the same period last year)
Net income attributable to
Mitsubishi Electric Corp.
stockholders:
102.3 billion yen (15% decrease from the same period last year)
The global economy in the first half of fiscal 2019, from April through September 2018, saw a slight slowdown in
China, a buoyant expansion in the U.S. and gradual trends of recovery in Japan and Europe. In addition, from
August, the yen weakened against the U.S. dollar and appreciated against the euro compared to the same period of
the previous fiscal year.
Under these circumstances, consolidated net sales in the first half of fiscal 2019 increased by 3%compared to the same period of the previous fiscal year to 2,170.1 billion yen with increased sales in the Energy
and Electric Systems, Industrial Automation Systems, Electronic Devices and Home Appliances segments.
Consolidated operating income decreased by 18% compared to the same period of the previous fiscal year to 125.9
billion yen, due to decreased profits in the Industrial Automation Systems, Information and Communication
Systems, Electronic Devices and Home Appliances segments.
Income before income taxes decreased by 15% compared to the same period of the previous fiscal year
to 141.2 billion yen.
Net income attributable to Mitsubishi Electric Corporation stockholders decreased by 15% compared tothe same period of the previous fiscal year to 102.3 billion yen.

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Consolidated Financial Results by Business Segment (First Half, Fiscal 2019)
Energy and Electric Systems
Total sales:
568.6 billion yen(2% increase from the same period last year which
recorded 557.1 billion yen)
Operating income:15.5 billion yen(4.9 billion yen increase from the same period last year
which recorded 10.6 billion yen)
The social infrastructure systems business saw increases in both orders and sales from the same period of theprevious fiscal year. This was due primarily to an increase in orders in the transportation systems business in Japanand an increase in sales in the power systems business in Japan.
The building systems business saw orders and sales both substantially unchanged compared to the same
period of the previous fiscal year due primarily to buoyancies in the renewal business in Japan and in new
installations of elevators and escalators mainly in Korea and India despite decreases in Japan and China.
As a result, total sales for this segment increased by 2% from the same period of the previous fiscal year.
Operating income increased by 4.9 billion yen from the same period of the previous fiscal year mainly due to anincrease in sales.

Industrial Automation Systems
Total sales:
730.3 billion yen
Operating income:

77.9 billion yen(4% increase from the same period last year which
recorded 703.7 billion yen)
(18.3 billion yen decrease from the same period last year
which recorded 96.3 billion yen)

The factory automation systems business saw a decrease in orders, while sales remained substantially unchanged,
from the same period of the previous fiscal year due primarily to a temporary slowdown in capital expenditures in
the fields of organic light emitting diodes (OLED) and smartphones outside Japan, despite buoyant demand forexports mainly by machinery and semiconductor-related equipment manufacturers in Japan.
The automotive equipment business saw increases in both orders and sales from the same period of theprevious fiscal year due primarily to increases in Japan, other markets in Asia and Europe, as well as increased
sales in electric-vehicle related equipment in response to market growth worldwide.
As a result, total sales for this segment increased by 4% from the same period of the previous fiscal year.
Operating income decreased by 18.3 billion yen from the same period of the previous fiscal year due primarily toa shift in product mix, increases in material prices and upfront investment for growth drivers.
Information and Communication Systems
Total sales:
186.8 billion yen
Operating income:2.5 billion yen(2% decrease from the same period last year which
recorded 191.2 billion yen)(0.7 billion yen decrease from the same period last year
which recorded 3.2 billion yen)

The telecommunications systems business saw decreases in both orders and sales compared to the same period of
the previous fiscal year due primarily to decreased demand in communications infrastructure equipment.
The information systems and service business saw decreases in both orders and sales compared to thesame period of the previous fiscal year, mainly due to a shift in projects for the system integrations business.
The electronic systems business saw an increase in orders, while sales remained substantially unchanged,
compared to the same period of the previous fiscal year mainly due to an increase in large-scale projects in the
defense systems business.
As a result, total sales for this segment decreased by 2% compared to the same period of the previous
fiscal year. Operating income decreased by 0.7 billion yen compared to the same period of the previous fiscal year
due primarily to a decrease in sales.

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Electronic Devices
Total sales:

101.8 billion yen

Operating income:1.2 billion yen(2% increase from the same period last year which
recorded 99.5 billion yen)
(5.9 billion yen decrease from the same period last year
which recorded 7.2 billion yen)

The electronic devices business saw an increase in orders, and sales rose by 2% from the same period of theprevious fiscal year due to an increase in demand mainly for power modules used in automotive and railcar
applications, despite decreased demand for optical communication devices.
Operating income decreased by 5.9 billion yen compared to the same period of the previous fiscal year
due primarily to a shift in product mix.
Home Appliances
Total sales:

557.1 billion yen

Operating income:33.6 billion yen(3% increase from the same period last year which
recorded 539.2 billion yen)
(5.7 billion yen decrease from the same period last year
which recorded 39.4 billion yen)

The home appliances business saw an increase in sales of 3% from the same period of the previous fiscal year due
to an increase in sales of air conditioners for Europe, Japan and North America.
Operating income decreased by 5.7 billion yen compared to the same period of the previous fiscal year
due primarily to increases in material prices and sales expenses.
OthersTotal sales:

327.8 billion yen

Operating income:10.3 billion yen(5% increase from the same period last year which
recorded 310.7 billion yen)
(0.6 billion yen increase from the same period last year
which recorded 9.6 billion yen)

Sales increased by 5% compared to the same period of the previous fiscal year due primarily to an increase in sales
at affiliated companies involved in materials procurement.
Operating income increased by 0.6 billion yen compared to the same period of the previous fiscal year
due primarily to an increase in sales.

2. Consolidated Second-quarter Results (July 1, 2018 – September 30, 2018)
Net sales:
1,119.1 billion yen (4% increase from the same period last year)
Operating income:
64.3 billion yen (17% decrease from the same period last year)
Income before income taxes:
72.5 billion yen (15% decrease from the same period last year)
Net income attributable to
Mitsubishi Electric Corp.
stockholders:
54.7 billion yen (14% decrease from the same period last year)
Consolidated net sales for this quarter, from July through September 2018, was 1,119.1 billion yen, a 4% increase
from the same period of the previous fiscal year, due primarily to increased sales in the Energy and Electric Systems,
Industrial Automation Systems, Information and Communication Systems and Home Appliances segments.
Consolidated operating income was 64.3 billion yen, a decrease of 17% from the same period of theprevious fiscal year, with decreased profits in the Industrial Automation Systems, Information and Communication
Systems, Electronic Devices and Home Appliances segments.
Income before income taxes decreased by 15% compared to the same period of the previous fiscal year
to 72.5 billion yen.
Net income attributable to Mitsubishi Electric Corporation stockholders decreased by 14% compared tothe same period of the previous fiscal year to 54.7 billion yen.

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Consolidated Financial Results by Business Segment (Second Quarter, Fiscal 2019)
Energy and Electric Systems
Total sales:
301.2 billion yen(4% increase from the same period last year which
recorded 288.5 billion yen)
Operating income:9.5 billion yen(5.6 billion yen increase from the same period last year
which recorded 3.9 billion yen)
The social infrastructure systems business saw increases in both orders and sales from the same period of theprevious fiscal year. This was due primarily to an increase in orders in the transportation systems business in Japanand an increase in sales in the power systems business in Japan.
The building systems business saw a decrease in orders, while sales remained substantially unchanged,
compared to the same period of the previous fiscal year due primarily to a slowdown in demand related to theTokyo Olympic and Paralympic Games, as well as impact from the stagnant Chinese market, despite buoyancies
in the renewal business in Japan and the new installation of elevators and escalators mainly in India and Korea.
As a result, total sales for this segment increased by 4% from the same period of the previous fiscal year.
Operating income increased by 5.6 billion yen from the same period of the previous fiscal year mainly due to anincrease in sales.

Industrial Automation Systems
Total sales:
369.3 billion yen
Operating income:33.1 billion yen(5% increase from the same period last year which
recorded 352.8 billion yen)
(12.4 billion yen decrease from the same period last year
which recorded 45.5 billion yen)

The factory automation systems business saw a decrease in orders from the same period of the previous fiscal year
due primarily to a temporary slowdown in capital expenditures in the fields of organic light emitting diodes(OLED) and smartphones outside Japan, while sales increased from the same period of the previous fiscal year due
primarily to buoyant demand for exports mainly by machinery and semiconductor-related equipment
manufacturers in Japan.
The automotive equipment business saw increases in both orders and sales from the same period of theprevious fiscal year due primarily to increases in Japan, Europe and Asian markets outside Japan, as well as
increased sales in electric-vehicle related equipment in response to market growth worldwide.
As a result, total sales for this segment increased by 5% from the same period of the previous fiscal year.
Operating income decreased by 12.4 billion yen from the same period of the previous fiscal year due primarily toa shift in product mix, increases in material prices and upfront investment for growth drivers.
Information and Communication Systems
Total sales:
107.0 billion yen
Operating income:4.3 billion yen(6% increase from the same period last year which
recorded 101.1 billion yen)
(0.6 billion yen decrease from the same period last year
which recorded 5.0 billion yen)

The telecommunications systems business saw decreases in both orders and sales compared to the same period of
the previous fiscal year due primarily to decreased demand in communications infrastructure equipment.
The information systems and service business saw increases in both orders and sales compared to thesame period of the previous fiscal year, mainly due to an increase in the system integrations business.
The electronic systems business saw an increase in both orders and sales compared to the same periodof the previous fiscal year mainly due to an increase in large-scale projects in the defense systems business.
As a result, total sales for this segment increased by 6% compared to the same period of the previous
fiscal year. Operating income decreased by 0.6 billion yen from the same period of the previous fiscal year due
primarily to a shift in project portfolios.

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Electronic Devices
Total sales:

50.4 billion yen

Operating income (loss):(0.2 billion yen)

(2% decrease from the same period last year which
recorded 51.4 billion yen)
(4.3 billion yen decline from the same period last year
which recorded 4.1 billion yen)

The electronic devices business saw an increase in orders from the same period of the previous fiscal year mainly
due to an increase in demand for power modules used in automotive and railcar applications, while sales decreased
by 2% from the same period of the previous fiscal year due primarily to a decrease in demand for opticalcommunication devices.
Operating income declined by 4.3 billion yen compared to the same period of the previous fiscal year
due primarily to a shift in product mix.
Home Appliances
Total sales:

276.7 billion yen

Operating income:13.6 billion yen(3% increase from the same period last year which
recorded 269.3 billion yen)
(1.6 billion yen decrease from the same period last year
which recorded 15.2 billion yen)

The home appliances business saw an increase in sales of 3% from the same period of the previous fiscal year due
to an increase in sales of air conditioners for North America, Europe and Japan.
Operating income decreased by 1.6 billion yen compared to the same period of the previous fiscal year
due primarily to increases in material prices and sales expenses.
OthersTotal sales:
Operating income:

172.1 billion yen
9.1 billion yen(4% increase from the same period last year which
recorded 165.8 billion yen)
(1.5 billion yen increase from the same period last year
which recorded 7.6 billion yen)

Sales increased by 4% compared to the same period of the previous fiscal year due primarily to an increase in sales
at affiliated companies involved in materials procurement.
Operating income increased by 1.5 billion yen compared to the same period of the previous fiscal year
due primarily to an increase in sales.

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Financial Standing
An analysis on the status of assets, liabilities and equity on a consolidated basis
Total assets as of the end of this fiscal quarter decreased from the end of the previous fiscal year by 42.7 billion
yen to 4,262.8 billion yen. The change in balance of total assets is mainly attributable to increases in inventories
by 81.2 billion yen as a result of work-in-process as recorded in commensurate with progress in job orders under
pertinent contracts, while cash and cash equivalents decreased by 18.5 billion yen, and trade receivables andcontract assets decreased by 116.2 billion yen primarily as a result of credit collection.
Total liabilities decreased from the end of the previous fiscal year by 95.6 billion yen to 1,812.7 billion
yen. The outstanding balances of debt decreased by 9.0 billion yen from the end of the previous fiscal year to 302.9
billion yen, resulting in a decline in the ratio of interest bearing debt to total assets to 7.1%, representing a 0.1 point
decrease compared to the end of the previous fiscal year. Meanwhile, trade payables decreased by 46.2 billion yen,and other current liabilities decreased by 44.9 billion yen.
Mitsubishi Electric Corporation stockholders’ equity increased by 47.1 billion yen compared to the endof the previous fiscal year to 2,341.2 billion yen. The stockholders’ equity ratio was recorded at 54.9%, representing
a 1.6 point increase compared to the end of the previous fiscal year. These changes referred to above primarily
result from recording a net income attributable to Mitsubishi Electric Corporation stockholders of 102.3 billion
yen, despite a decrease of 55.8 billion yen due to dividend payments.

An analysis on the status of cash flow on a consolidated basis
Cash flows from operating activities for the first half of fiscal 2019 increased by 18.0 billion yen compared to thesame period of the previous fiscal year to 144.3 billion yen (cash in), mainly due to a decrease in payments of trade
payables. Cash flows from investing activities increased by 29.2 billion yen compared to the same period of theprevious fiscal year to 98.7 billion yen (cash out), due primarily to a decrease in proceeds from sale of short-term
investments and investment securities. As a result, free cash flow was 45.5 billion yen (cash in). Cash flows fromfinancing activities were 68.8 billion yen (cash out) mainly due to dividend payments.

Forecast for Fiscal 2019 (year ending March 31, 2019)
Considering the financial results for the second quarter of fiscal 2019, the latest situation of orders received andother factors, consolidated net sales for fiscal 2019 is expected to exceed the company’s previous forecast owing
primarily to the weaker yen against the U.S. dollar, while income is expected to fall below the previous forecast in
the Industrial Automation Systems and Electronic Devices segments. As a result, the company’s consolidated
earnings forecast for fiscal 2019, ending March 31, 2019, has been revised from the announcement on July 30,
2018 as stated below.
Consolidated Earnings Forecast for Fiscal 2019
Previous forecast
Consolidated(announced July 30)
Net sales:
4,500.0 billion yen
Operating income:
315.0 billion yen
Income before income taxes:
345.0 billion yen
Net income attributable to
Mitsubishi Electric Corp.
stockholders:
245.0 billion yen

Current forecast
4,510.0 billion yen (1% increase from fiscal 2018)305.0 billion yen (7% decrease from fiscal 2018)335.0 billion yen (5% decrease from fiscal 2018)240.0 billion yen (6% decrease from fiscal 2018)

Exchange rates in and after the third quarter of fiscal 2019 is 105 yen to the U.S. dollar, which is 5 yen weakerfrom the company’s previous announcement, 125 yen to the euro, unchanged from the previous announcement,
and 16.0 yen to the Chinese yuan, which is 0.5 yen stronger.
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 at the
end.

6/39

Consolidated Financial Results Summary
1. Consolidated Half-year Results(In billions of yen except where noted)
FY ’18 1st half (A)(Apr. 1, 2017 –Sept. 30, 2017)

FY ’19 1st half (B)(Apr. 1, 2018 –Sept. 30, 2018)

Net sales

2,111.7

2,170.1

58.3

103

Operating income

152.8

125.9

(26.8)

82

Income before income taxes

166.1

141.2

(24.8)

85

120.9

102.3

(18.6)

85

56.37 yen

47.70 yen

(8.67 yen)85

Net income attributable to
Mitsubishi Electric Corp.
stockholders
Basic net income per share
attributable to Mitsubishi
Electric Corp. stockholders

B–A

B/A
(%)

2. Consolidated Second-quarter Results(In billions of yen except where noted)
FY ’18 Q2 (A)(Jul. 1, 2017 –Sept. 30, 2017)

FY ’19 Q2 (B)(Jul. 1, 2018 –Sept. 30, 2018)

1,077.8

1,119.1

41.2

104

77.3

64.3

(12.9)

83

85.7

72.5

(13.1)

85

63.9

54.7

(9.2)

86

29.82 yen

25.52 yen

(4.30 yen)86

Net sales
Operating income
Income before income
taxes
Net income attributable to
Mitsubishi Electric Corp.
stockholders
Basic net income per share
attributable to Mitsubishi
Electric Corp. stockholders

B–A

Notes:

1) Consolidated financial statements are made in accordance with International Financial Reporting Standards (IFRS).
2) The Company has 209 consolidated subsidiaries.

7/39

B/A
(%)

Condensed Quarterly Consolidated Financial Statements
Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly
Consolidated Statements of Comprehensive Income (First Half, Fiscal 2019)(Condensed Quarterly Consolidated Statements of Profit or Loss)(In millions of yen)st

Net sales
Cost of sales
Selling, general andadministrative expenses
Other profit (loss)
Operating income
Financial income
Financial expenses
Share of profit of investments
accounted for using theequity method
Income before income taxes
Income tax expenses
Net income
Net income attributable to:
Mitsubishi Electric Corp.
stockholders
Non-controlling interests

FY ’18 1 half
(Apr. 1, 2017 –Sept. 30, 2017)
% of
(A)
total
2,111,767
100.0
1,462,559
69.3

stFY ’19 1 half
(Apr. 1, 2018 –Sept. 30, 2018)
% of
(B)
total
2,170,106
100.0
1,530,169
70.5

58,33967,610

B/A
(%)
103
105

B–A

496,013(370)
152,825
4,885
1,525

23.5
(0.0)
7.2
0.2
0.0

514,365368
125,940
6,629
1,285

23.7
0.0
5.8
0.3
0.1

18,352738(26,885)
1,744
(240)

104
－
82
136
84

9,987

0.5

10,007

0.5

20

100

166,172

7.9

141,291

6.5(24,881)85

39,386
126,786

1.9
6.0

33,259108,0321.5
5.0(6,127)(18,754)8485

120,972

5.7

102,328

4.7(18,644)

85

5,814

0.3

5,704

0.3

(110)

98

8/39

(Condensed Quarterly Consolidated Statements of Comprehensive Income)(In millions of yen)

Net income(Other comprehensive income (loss),
net of tax)
Items that will not be reclassified to
net income
Financial assets measured at fair value
through other comprehensive income
Share of other comprehensive income ofinvestments accounted for using theequity method
Subtotal
Items that may be reclassified to net income
Exchange differences on translating
foreign operations
Net changes in the fair value of cash flow
hedgesShare of other comprehensive income ofinvestments accounted for using theequity method
Subtotal
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders
Non-controlling interests

FY ’18
1st half (A)(Apr. 1, 2017 –Sept. 30, 2017)
126,786

FY ’19
1st half (B)(Apr. 1, 2018 –Sept. 30, 2018)
108,032

9,721(8,429)(18,150)597
10,318238(8,191)(359)(18,509)

31,5599,386(22,173)

5

92

87

(185)
31,37941,697
168,483(1,763)
7,715(476)
107,556(1,578)(23,664)(42,173)(60,927)

160,695
7,788

100,934
6,622(59,761)(1,166)

9/39

B–A(18,754)

Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly
Consolidated Statements of Comprehensive Income (Second Quarter, Fiscal 2019)(Condensed Quarterly Consolidated Statements of Profit or Loss)(In millions of yen)

Net sales
Cost of sales
Selling, general andadministrative expenses
Other profit (loss)
Operating income
Financial income
Financial expenses
Share of profit of investments
accounted for using theequity method
Income before income taxes
Income tax expenses
Net income
Net income attributable to:
Mitsubishi Electric Corp.
stockholders
Non-controlling interests

FY ’18 Q2(Jul. 1, 2017 –Sept. 30, 2017)
% of
(A)
total
1,077,831
100.0
745,594
69.2

FY ’19 Q2(Jul. 1, 2018 –Sept. 30, 2018)
% of
(B)
total
1,119,124
100.0
789,12270.5

41,293
43,528

B/A
(%)
104
106

B–A

254,403(502)
77,332
1,467
762

23.6
(0.0)
7.2
0.2
0.1

264,159(1,492)64,351
1,871
675

23.6
(0.1)
5.8
0.2
0.1

9,756
(990)
(12,981)
404
(87)

104
－
83
128
89

7,689

0.7

7,014

0.6

(675)

91

85,726

8.0

72,561

6.5(13,165)85

18,15067,5761.7
6.3

14,53658,0251.3
5.2(3,614)(9,551)80
86

63,987

5.9

54,7504.9(9,237)

86

3,589

0.4

3,275

0.3

(314)

91

10/39

(Condensed Quarterly Consolidated Statements of Comprehensive Income)(In millions of yen)

Net income(Other comprehensive income (loss),
net of tax)
Items that will not be reclassified to
net income
Financial assets measured at fair value
through other comprehensive income
Share of other comprehensive income ofinvestments accounted for using theequity method
Subtotal
Items that may be reclassified to net income
Exchange differences on translating
foreign operations
Net changes in the fair value of cash flow
hedgesShare of other comprehensive income ofinvestments accounted for using theequity method
Subtotal
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders
Non-controlling interests

FY ’18 Q2 (A)(Jul. 1, 2017 –Sept. 30, 2017)67,576

FY ’19 Q2 (B)(Jul. 1, 2018 –Sept. 30, 2018)
58,02518,855(15,817)(34,672)

310
19,165

107(15,710)(203)(34,875)

19,01918,538

(481)

2

110

108

672
19,69338,858106,434

81
18,7293,019
61,044(591)(964)(35,839)(45,390)

101,168
5,266

56,2044,840(44,964)
(426)

11/39

B–A
(9,551)

Condensed Quarterly Consolidated Statements of Financial Position(In millions of yen)
FY ’18 (A)(ended Mar.
31, 2018)(Assets)
Current assets
Cash and cash equivalents
Trade receivables and Contract Assets
Inventories
Other current assets
Non-current assets
Investments accounted for using the equity method
Other financial assets
Net property, plant and equipment
Other non-current assets
Total assets(Liabilities)
Current liabilities
Bonds and borrowings
Trade payables
Other current liabilities
Non-current liabilities
Bonds and borrowings
Net defined benefit liabilities
Other non-current liabilities
Total liabilities(Equity)
Mitsubishi Electric Corp. stockholders’ equity
Common stock
Capital surplus
Retained earnings
Accumulated other comprehensive income (loss)
Treasury stock at costNon-controlling interests
Total equity
Total liabilities and equity
Balance of Debt
Accumulated other comprehensive income (loss):
Exchange differences on translating foreign
operations
Remeasurements of defined benefit pension plans
Financial assets measured at fair value throughother comprehensive income
Net changes in the fair value of cash flow hedges

12/39

FY ’ 19
1st half (B)(ended Sept.
30, 2018)

B–A

2,582,735
599,199
1,191,529
646,262
145,745
1,722,845
194,308
363,171724,257
441,1094,305,580

2,528,623
580,690
1,075,231
727,462
145,240
1,734,194
191,008
348,309746,544448,333
4,262,817(54,112)(18,509)(116,298)
81,200(505)
11,349(3,300)(14,862)
22,287
7,224(42,763)

1,488,249
122,895
579,566
785,788
420,112
189,055
171,520
59,537
1,908,361

1,418,025
143,825
533,365
740,835
394,728
159,083
176,866
58,7791,812,753(70,224)
20,930(46,201)(44,953)(25,384)(29,972)
5,346
(758)
(95,608)2,294,174
175,820
199,442
1,811,348
109,492(1,928)103,0452,397,219
4,305,580

2,341,291
175,820
202,495
1,857,619
108,339(2,982)
108,7732,450,064
4,262,817

47,117－
3,053
46,271(1,153)(1,054)
5,728
52,845(42,763)

311,950

302,908(9,042)

17,549－24,313－

6,764－

91,952(9)83,96858(7,984)67

Condensed Quarterly Consolidated Statements of Changes in Equity(In millions of yen)
Mitsubishi Electric Corp. stockholders’ equity

Balance at April 1, 2017

Commonstock

CapitalsurplusRetainedearnings

Accumulated
othercomprehensive
income (loss)

175,820

198,745

1,593,660

101,166

Treasurystock atcost
(1,228)

Noncontrolling

Totalinterests

Total
equity2,068,163

98,8002,166,963

120,972

5,814

126,786

39,723

1,974

41,697

160,695

7,788

168,483

Comprehensive income
Net income

120,972

Other comprehensive
income (loss)

39,723Comprehensive income－－

Transfer to retained earnings
Dividends paid

120,972

39,723

7,638(7,638)－－(38,642)(38,642)

Purchase of treasury stock
Reissuance of treasury stock－(5,326)(43,968)

(698)

(698)

(698)

0

0

0

0

Transactions with noncontrolling interests, etc.
Balance at Sep. 30, 20174
175,820

198,749

1,683,628

133,251(1,926)

4

(65)

(61)

2,189,522

101,1972,290,719

Mitsubishi Electric Corp. stockholders’ equity

Balance at April 1, 2018

CommonCapitalRetainedstock

surplusearnings

175,820

199,442

1,811,348

Accumulated
othercomprehensive
income (loss)

Treasury

109,492(1,928)stock atNoncontrolling

Totalinterests

cost

Total
equity2,294,174

103,0452,397,219

102,3285,704

108,032(1,394)

918

(476)

100,934

6,622

107,556

Comprehensive income
Net income

102,328

Other comprehensive
income (loss)
Comprehensive income(1,394)－－

Transfer to retained earnings
Dividends paid

102,328(1,394)

(241)

241

－

－

(55,816)(55,816)

Purchase of treasury stock
Reissuance of treasury stock

0－(4,571)(60,387)(1,054)(1,054)(1,054)0

0

0Transactions with noncontrolling interests, etc.
Balance at Sep. 30, 2018

3,053
175,820

202,495

1,857,619

13/39

108,339(2,982)

3,053

3,677

6,730

2,341,291

108,7732,450,064

Condensed Quarterly Consolidated Statements of Cash Flows(In millions of yen)I

Cash flows from operating activities
1 Net income
2 Adjustments to reconcile net income to net cash
provided by operating activities(1) Depreciation, amortization and other(2) Decrease in trade receivables and contract assets(3) Decrease (increase) in inventories(4) Increase (decrease) in trade payables(5) Other, net
Cash flows from operating activities

II
1
2
3
4
5

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of short-term investments and investment
securities (net of cash acquired)Proceeds from sale of short-term investments andinvestment securities
Other, net
Cash flows from investing activities

FY ’18 1st half
(Apr. 1, 2017 –Sept. 30, 2017)(A)

FY ’19 1st half
(Apr. 1, 2018 –Sept. 30, 2018)
(B)

B–A

126,786

108,032(18,754)

81,508122,083(54,678)(100,984)(48,452)
126,263

81,407
126,701(70,970)(49,041)(51,828)
144,301

(101)
4,618
(16,292)
51,943(3,376)18,038(88,562)
1,351(88,211)
1,502

351
151

(3,915)(7,874)(3,959)28,302(6,634)(69,458)

3,484(7,626)(98,725)(24,818)(992)(29,267)

I + IIFree cash flow

56,80545,576(11,229)

III

Cash flows from financing activities
Proceeds from long-term debt and repayment of longterm debt
Increase (decrease) in bank loans, net
Dividends paid
Purchase of treasury stock
Reissuance of treasury stock
Other, net
Cash flows from financing activities(14,374)(20,537)(38,642)(698)
0(6,733)(80,984)(14,551)872(55,816)(1,054)
0
1,676(68,873)(177)
21,409(17,174)
(356)
0
8,409
12,111

8,522

4,788

(3,734)(15,657)
662,469
646,812(18,509)599,199580,690(2,852)(63,270)(66,122)

1
2
3
4
5
6
IV
V
VI
VII

Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

14/39

Consolidated Segment Information (First Half, Fiscal 2019)
1. Sales and Operating Income by Business Segment(In millions of yen)
FY ’18 1st half
(Apr. 1, 2017 –Sept. 30, 2017)
OperatingSales
income(A)(B)

FY ’19 1st half
(Apr. 1, 2018 –Sept. 30, 2018)
OperatingSales
income(C)(D)

Energy and Electric Systems

557,134

10,660568,642

15,564

11,5084,904

102

Industrial Automation Systems
Information andCommunication Systems

703,716

96,315730,350

77,97926,634(18,336)104

191,216

3,250

186,867

2,502(4,349)(748)

98Electronic Devices

99,532

7,234

101,896

1,269

2,364

(5,965)102

Home Appliances

539,250

39,446557,120

33,665

17,870(5,781)

103

Others

310,7819,660

327,831

10,343

17,050683

105

Subtotal

2,401,629

166,565

2,472,706

141,32271,077(25,243)

103

Eliminations and other(289,862)(13,740)(302,600)(15,382)(12,738)(1,642)－

Consolidated Total

2,111,767

152,825

2,170,106

125,940

58,339(26,885)

103

Business Segment

C–A

D–B

C/A
(%)

*Notes: Inter-segment sales are included in the above chart.

2. Sales by Location of Customers(In millions of yen)st

Location of Customers

FY ’18 1 half
(Apr. 1, 2017 –Sept. 30, 2017)% of total
Sales (A)net sales

FY ’19 1st half
(Apr. 1, 2018 –Sept. 30, 2018)% of total
Sales (B)net salesJapan

1,110,504

52.6

1,168,802

North America
Asia (excluding Japan)
China
EuropeOthersTotal overseas sales
Consolidated total

53.9

B–A

B/A (%)

58,298105

209,8119.9

209,854

9.7

43

100

548,040

26.0

528,32124.3(19,719)96

273,835

13.0

265,287

12.2(8,548)97

214,32310.1

233,125

10.7

18,802

109

29,0891.4

30,004

1.4

915

103

1,001,263

47.4

1,001,304

46.1

41

100

2,111,767

100.0

2,170,106

100.0

58,339103

15/39

Consolidated Segment Information (Second Quarter, Fiscal 2019)
1. Sales and Operating Income by Business Segment(In millions of yen)
FY ’18 Q2(Jul. 1, 2017 –Sept. 30, 2017)
OperatingSales
income(A)(B)

FY ’19 Q2(Jul. 1, 2018 –Sept. 30, 2018)
OperatingSales
income(C)(loss) (D)Energy and Electric Systems

288,590

3,948

301,2459,586

12,655

5,638

104

Industrial Automation Systems
Information andCommunication Systems

352,899

45,569369,351

33,106

16,452(12,463)105

101,170

5,033

107,085

4,342

5,915

(691)

106

Electronic Devices

51,4104,178

50,434

(217)

(976)

(4,395)98

Home Appliances

269,358

15,258276,786

13,6097,428(1,649)103

Others

165,877

7,647

172,174

9,183

6,297

1,536

104

Subtotal

1,229,304

81,633

1,277,075

69,60947,771(12,024)

104

Eliminations and other(151,473)(4,301)(157,951)(5,258)(6,478)(957)－

Consolidated Total

1,077,831

77,332

1,119,124

64,351

41,293(12,981)

104

Business Segment

C–A

D–B

C/A
(%)

*Notes: Inter-segment sales are included in the above chart.

2. Sales by Location of Customers(In millions of yen)

Location of Customers

Japan
North America

FY ’18 Q2(Jul. 1, 2017 –Sept. 30, 2017)% of total
Sales (A)net sales

FY ’19 Q2(Jul. 1, 2018 –Sept. 30, 2018)% of total
Sales (B)net sales

B–A

B/A (%)

583,03254.1

627,368

56.1

44,336

108

103,330

9.6

106,756

9.5

3,426

103

Asia (excluding Japan)
China

273,61425.4

258,04623.0(15,568)

94

133,44512.4

125,104

11.2(8,341)94

EuropeOthers102,259

9.5

111,488

10.0

9,229

109

15,596

1.4

15,466

1.4

(130)

99

Total overseas sales
Consolidated total

494,79945.9

491,75643.9(3,043)99

1,077,831

100.0

1,119,124

100.0

41,293

104

Notes to the Condensed Consolidated Financial Statements(Notes regarding the going concern assumption)
Not applicable(Notes if there is any significant change in Mitsubishi Electric Corp. stockholders’ equity)
Not applicable

16/39

Disclosures of Transition to IFRSThe Mitsubishi Electric Group has applied IFRS beginning with the consolidated financial statements for the
first quarter of the current fiscal year. The most recent consolidated financial statements prepared in accordancewith US GAAP are for the one-year period ended on March 31, 2018. The date of transition to IFRS was April
1, 2017.
(1) Exemptions and exceptions in IFRS 1IFRS 1 requires entities adopting IFRS for the first time to retrospectively apply IFRS in principle; however,with regard to certain items, it allows exemption from, or prohibits, retrospective application of IFRS.
The Company and its consolidated subsidiaries use the following exemptions on retrospective application
permitted by IFRS 1:- Business combinations
The Company and its consolidated subsidiaries elected not to apply IFRS 3 Business Combinations
retrospectively to past business combinations that occurred on or before December 22, 2015. Consequently,
the amount of goodwill that arose from business combinations occurred on or before December 22, 2015is recorded at the carrying value in accordance with US GAAP. This goodwill was tested for impairment at
the transition date irrespective of whether there was any indication of impairment.
- Exchange differences on translating foreign operations
The Company and its consolidated subsidiaries elected to deem the cumulative translation differences forforeign operations at the transition date to be zero. Consequently, the cumulative translation differences forforeign operations at the transition date were transferred from accumulated other comprehensive income(loss) to retained earnings.
- Designation of financial instruments recognized before the date of transition to IFRSThe Company and its consolidated subsidiaries elected to determine the classification of financial
instruments on the basis of the facts and circumstances that exist at the date of transition to IFRS.
(2) Reconciliations
Reconciliations for which disclosures are required on first time adoption of IFRS are as follows:
Items that do not affect retained earnings and comprehensive income are presented in “Reclassification,”and items that affect retained earnings and comprehensive income are presented in “Recognition andmeasurement differences.”

17/39

Reconciliation of Equity as at the Date of Transition to IFRS (April 1, 2017)(Consolidated Statements of Financial Position)
Presentation under US GAAP

Recognition
Reand
US GAAP classification measurement
differences(Assets)
Current assets
2,500,685
Cash and cash equivalents
662,469
Trade receivables
Inventories
Prepaid expenses andother current assets
Long-term trade receivables
Investments

Net property, plant andequipment
Other assets
Total assets

3,062
－

IFRS

Presentation under IFRS

(Assets)
Current assets
Cash and cash equivalents
Trade receivables andcontract assets
103,004 1,155,466
Inventories(83,138)
559,9024,810 2,508,557－
662,469

1,037,201
643,040

15,261－

157,975－
2,815
618,935(12,199)(3,062)(2,815)(618,935)(15,056)
130,720
60,950 1,729,473
－
－
－
－

－
－

181,724
362,869

5,634
27,710732,611317,224
4,172,270－
74,095－(33,133)
699,478
60,739452,058
65,760 4,238,030

18/39(In millions of yen)

187,358
390,579

Other current assets
Non-current assets

Investments accounted forusing the equity method
Other financial assets
Net property, plant andequipment
Other non-current assets
Total assets

(In millions of yen)

Presentation under US GAAP US GAAP
(Liabilities)
Current liabilities
Bank loans and current
portion of long-term debt
Trade payables
Other current liabilities
Long-term debt
Retirement and severance
benefits
Other fixed liabilities
Total liabilities(Equity)
Mitsubishi Electric Corp.
shareholders’ equity
Common stock
Capital surplus
Retained earnings
Accumulated othercomprehensive income(loss)
Treasury stock at cost
Noncontrolling interests
Total equity
Total liabilities and equity
Balance of Debt

Recognition
Reandclassification measurement
differences

1,525,761

7,456

33,082

124,368
780,202621,191－
227,756－(145,119)
152,575(7,456)－21,987－
11,095
6,423－

194,990
83,0552,031,562－(7,456)－

8,044(1,621)
39,5052,039,627
175,820
212,530
1,654,557－－－－

28,536－(13,785)(60,897)(2,052)(1,228)101,0812,140,708
4,172,270

－
－
－
－
－

103,218－(2,281)
26,25565,760352,124－

21,987

Accumulated othercomprehensive income (loss):
Foreign currency translation
adjustments

18,535－(18,535)

Pension liability adjustments(156,993)－

156,993

136,352－(35,223)

54

－

(17)

Unrealized gains on
securities
Unrealized gains (losses) on
derivative instruments

19/39

IFRS

Presentation under IFRS(Liabilities)
1,566,299 Current liabilities
Bonds and borrowings
146,355
Trade payables
635,083
Other current liabilities
784,861
504,768 Non-current liabilities
Bonds and borrowings
227,756
Net defined benefit
liabilities
203,034
Other non-current liabilities
73,9782,071,067 Total liabilities(Equity)
Mitsubishi Electric Corp.
stockholders’ equity
2,068,163
Common stock
175,820
Capital surplus
198,745
Retained earnings
1,593,660
Accumulated othercomprehensive income(loss)
101,166
Treasury stock at cost
(1,228)98,800 Non-controlling interests
2,166,963 Total equity
4,238,030 Total liabilities and equity
374,111 Balance of Debt

Accumulated othercomprehensive income (loss):
Exchange differences ontranslating foreign－
operations
Remeasurements of defined－
benefit pension plans
Financial assets measured atfair value through othercomprehensive income
101,129
Net changes in the fair valueof cash flow hedges
37

Reconciliation of Equity as at the End of the Second Quarter of the Previous Fiscal Year
(September 30, 2017)(Condensed Quarterly Consolidated Statements of Financial Position)(In millions of yen)
Presentation under US GAAP
(Assets)
Current assets
Cash and cash equivalents
Trade receivables
Inventories
Prepaid expenses andother current assets
Long-term trade receivables
Investments

Net property, plant andequipment
Other assets
Total assets

Recognition
Reand
US GAAP classification measurement
differences

2,486,482
646,812

2,838－(14,798)－

915,510742,105

16,874－

113,789(114,477)

182,055－
2,920
614,786(14,036)(2,838)(2,920)(614,786)(14,110)64,217－－－－

175,075
350,237

5,269
27,760755,261
295,060
4,154,509－
89,556－(32,420)
63,60849,419

20/39

IFRS

Presentation under IFRS

(Assets)
2,474,522 Current assets
Cash and cash equivalents
646,812Trade receivables andcontract assets
1,046,173
Inventories
627,628
Other current assets
153,9091,729,406 Non-current assets－－
Investments accounted forusing the equity method
180,344
Other financial assets
377,997
Net property, plant andequipment
722,841
Other non-current assets
448,224
4,203,928 Total assets

Presentation under US GAAP US GAAP
(Liabilities)
Current liabilities
Bank loans and current
portion of long-term debt
Trade payables
Other current liabilities
Long-term debt
Retirement and severance
benefits
Other fixed liabilities
Total liabilities(Equity)
Mitsubishi Electric Corp.
shareholders’ equity
Common stock
Capital surplus
Retained earnings
Accumulated othercomprehensive income(loss)
Treasury stock at cost
Noncontrolling interests
Total equity
Total liabilities and equity
Balance of Debt

Recognition
Reandclassification measurement
differences

IFRS

Presentation under IFRS(Liabilities)
Current liabilities

1,405,615

7,599

8,065

1,421,279

121,647
661,741
622,227－
216,945－(124,109)
131,708(7,599)
－

5,018
－
3,047
23,987－

182,432
76,165
1,881,157－(7,599)－24,992(1,005)32,0522,170,547
175,820
212,534
1,747,050－－－－

18,975－(13,785)(63,422)37,069(1,926)
102,805
2,273,352
4,154,509

－
－
－
－
－

96,182－(1,608)17,36749,419Bonds and borrowings
Trade payables
Other current liabilities
Non-current liabilities
Bonds and borrowings
Net defined benefit
207,424
liabilities
67,561Other non-current liabilities
1,913,209 Total liabilities(Equity)
Mitsubishi Electric Corp.
2,189,522
stockholders’ equity
175,820
Common stock
198,749
Capital surplus
1,683,628
Retained earnings
Accumulated othercomprehensive income
133,251(loss)(1,926)
Treasury stock at cost
101,197 Non-controlling interests
2,290,719 Total equity
4,203,928 Total liabilities and equity

338,592－

5,018

Accumulated othercomprehensive income (loss):
Foreign currency translation
adjustments

43,223－(13,747)

Pension liability adjustments(139,120)－

139,120

132,981－(29,247)

(15)

－

56

Unrealized gains on
securities
Unrealized gains (losses) on
derivative instruments(In millions of yen)

21/39

126,665
537,632
756,982
491,930
216,945

343,610 Balance of Debt

Accumulated othercomprehensive income (loss):
Exchange differences ontranslating foreign
29,476
operations
Remeasurements of defined－
benefit pension plans
Financial assets measured atfair value through other103,734
comprehensive income
Net changes in the fair value
41
of cash flow hedges

Reconciliation of Equity as at the End of the Previous Fiscal Year (March 31, 2018)(Consolidated Statements of Financial Position)(In millions of yen)
Presentation under US GAAP
(Assets)
Current assets
Cash and cash equivalents
Trade receivables
Inventories
Prepaid expenses andother current assets
Long-term trade receivables
Investments

Net property, plant andequipment
Other assets
Total assets

Recognition
Reand
US GAAP classification measurement
differences

2,606,493
599,199(1,434)－(22,324)－

1,087,593
741,782

14,225－89,711(95,520)

177,919－
1,965
614,295(15,659)
1,434(1,965)(614,295)(16,515)
63,345－－－－

187,828
335,474

6,480
27,697740,448
301,358
4,264,559－
94,392－(16,191)
45,35941,021

22/39

IFRS

Presentation under IFRS

(Assets)
2,582,735 Current assets
Cash and cash equivalents
599,199
Trade receivables andcontract assets
1,191,529
Inventories
646,262
Other current assets
145,745
1,722,845 Non-current assets－－
Investments accounted forusing the equity method
194,308
Other financial assets
363,171
Net property, plant andequipment
724,257
Other non-current assets
441,1094,305,580 Total assets

(In millions of yen)

Presentation under US GAAP US GAAP
(Liabilities)
Current liabilities
Bank loans and current
portion of long-term debt
Trade payables
Other current liabilities
Long-term debt
Retirement and severance
benefits
Other fixed liabilities
Total liabilities(Equity)
Mitsubishi Electric Corp.
shareholders’ equity
Common stock
Capital surplus
Retained earnings
Accumulated othercomprehensive income(loss)
Treasury stock at cost
Noncontrolling interests
Total equity
Total liabilities and equity
Balance of Debt

Recognition
Reandclassification measurement
differences

Presentation under IFRS(Liabilities)
Current liabilities

1,471,367

8,586

8,296

1,488,249

122,430
719,404
629,533－
189,055－(139,838)
148,424(8,586)
－

465
－
7,831
(349)
－

171,017
68,9751,900,414－(8,586)
－

503
(852)
7,947

2,259,355
175,820
213,250
1,857,741－－－－

34,819－(13,808)(46,393)

14,472(1,928)104,7902,364,145
4,264,559

－
－
－
－
－

95,020－(1,745)33,07441,021

Bonds and borrowings
Trade payables
Other current liabilities
Non-current liabilities
Bonds and borrowings
Net defined benefit
liabilities
171,520
Other non-current liabilities
59,537
1,908,361 Total liabilities(Equity)
Mitsubishi Electric Corp.
stockholders’ equity
2,294,174
Common stock
175,820
Capital surplus
199,442
Retained earnings
1,811,348
Accumulated othercomprehensive income(loss)
109,492
Treasury stock at cost
(1,928)103,045 Non-controlling interests
2,397,219 Total equity
4,305,580 Total liabilities and equity

311,485－

465

Accumulated othercomprehensive income (loss):
Foreign currency translation
adjustments

34,149－(16,600)

Pension liability adjustments(141,075)－

141,075

121,413－(29,461)

(15)

－

6

Unrealized gains on
securities
Unrealized gains (losses) on
derivative instruments

IFRS

23/39

122,895
579,566
785,788
420,112
189,055

311,950 Balance of Debt

Accumulated othercomprehensive income (loss):
Exchange differences ontranslating foreign
operations
17,549Remeasurements of defined－
benefit pension plans
Financial assets measured atfair value through othercomprehensive income
91,952
Net changes in the fair valueof cash flow hedges(9)Notes to reconciliation of equity
The principal effects of transition to IFRS in the reconciliation of equity above are as follows:(1) Reclassification
The main elements of reclassification are as follows:(a) In accordance with the presentation provisions under IFRS, other financial assets are presented separately.
(b) Part of trade receivables, prepaid expenses and other current assets and other assets, etc. are reclassified
based on the definition and recognition criteria of IFRS.
(c) Part of trade payables, other current liabilities and other fixed liabilities are reclassified based on thedefinition and recognition criteria of IFRS.
(2) Recognition and measurement differences
The main elements of recognition and measurement differences are as follows:(a) Employee benefits
Under US GAAP, actuarial gains and losses and past service costs are deferred in accumulated othercomprehensive income, subsequently amortized for a specified future period and recognized in profit or loss.
Current service costs, interest costs and expected return on plan assets are recognized in profit or loss for the
fiscal year.
Under IFRS, on the other hand, changes resulting from remeasurement of defined-benefit corporate
pension plans, defined benefit obligation on lump-sum payment plans and plan assets required by IFRS
are recognized in other comprehensive income, and reclassified from accumulated other comprehensive
income directly to retained earnings, not through profit or loss. Past service costs arising from planamendments are fully recognized immediately in profit or loss. Current service costs are recognized in
profit or loss. Interest costs are recognized in profit or loss at the amount determined by multiplying the
net amount of the defined benefit obligation and plan assets by the discount rate used to determine thepresent value of the obligation.
(b) Equity instruments
Under US GAAP, non-marketable equity instruments are recognized at their cost. If fair value of equity
instruments has decreased and the decrease is considered not to be temporary, impairment loss isrecognized for the amount of the cost of the equity instruments in excess of fair value. Gains or losseson the sale of these equity instruments are recognized in profit or loss.
Under IFRS, on the other hand, all equity instruments are recognized at fair value irrespective ofwhether there is an active market. Since it is permitted to recognize changes in fair value in othercomprehensive income, the Company and its consolidated subsidiaries have elected to recognize changes
in fair value of equity instruments in other comprehensive income. Accordingly, loss on impairment andgains or losses on the sale of equity instruments recognized in profit or loss under US GAAP arerecognized in other comprehensive income as well.
(c) Income taxes
Under US GAAP, tax expenses incurred by sellers are deferred using the deferral method for differences
arising from unrealized profits and losses from intercompany transactions.
Under IFRS, on the other hand, a difference between the carrying amount and the sale price of an asset soldis recognized as a future deductible temporary difference based on the asset-and-liability approach. A deferred
tax asset is recognized for the future deductible temporary difference using purchaser’s effective tax rate while
taking its recoverability into consideration.
Under US GAAP, deferred tax liabilities for temporary differences associated with investments in equity
investees are recognized using tax rates applicable on the premise that the temporary difference will bereversed at the time of sale of the equity investees even if a company intends to continue to hold theinvestments. In principle, deferred tax liabilities are recognized for the undistributed earnings of subsidiaries,
etc.
Under IFRS, deferred tax liabilities are in principle recognized for all the taxable temporary differencesusing tax rates applied when the taxable temporary differences reverse, such as when receiving dividends or
selling the investments. Deferred tax liabilities are recognized for the taxable temporary differences associatedwith investments in subsidiaries etc. which are probable to reverse in the foreseeable future.

24/39

(d) Exchange differences on translating foreign operations
Cumulative exchange differences on translating foreign operations are all deemed to be zero at the date oftransition to IFRS. Consequently, exchange differences on translating foreign operations included inaccumulated other comprehensive income as at the transition date were fully reclassified to retained earnings.
(e) Exclusion of equity investees
Under US GAAP, when an investee no longer qualifies as an equity investee, the difference between the saleprice and the carrying amount of the interest sold is recognized in profit or loss. If an investor retains a residualinterest, gains or losses recognized in prior periods remain included in the carrying amount of the residualinterest.
Under IFRS, on the other hand, when an investee no longer qualifies as an equity investee, the residualinterest is measured at fair value if an investor retains a residual interest. The sale price and the difference
between the fair value and the carrying amount of the residual interest at the point when an investee no longer
qualifies as an equity investee is recognized in profit or loss.
(f) Government grants
Under US GAAP, government grants related to acquisition of assets are not reflected in the carrying amountsof assets because there are no accounting standards for such government grants.
Under IFRS, on the other hand, government grants related to assets are recognized as reducing the carrying
amount of the asset by the government grants received.
(g) Impairment of non-financial assets
Under US GAAP, if there is an indication that a fixed asset may be impaired, the carrying amount and theundiscounted estimated future cash flows of the asset is compared. If the carrying amount exceeds theestimated future cash flows, any excess of the carrying amount over the fair value is recognized as an
impairment loss.
Under IFRS, on the other hand, if there is an indication that a fixed asset may be impaired, any excess ofthe carrying amount over the recoverable amount of the fixed asset (the higher of value in use or fair valueless costs of disposal) is recognized as an impairment loss of the fixed asset.
(h) Business combinations
Under US GAAP, in business combinations, the acquirer measures the acquiree as a whole (including noncontrolling interests) at fair value and goodwill is recognized including the portion of goodwill attributable tothe non-controlling interests.
Under IFRS, on the other hand, in business combinations it is permitted to elect to apply either method: theacquirer measures the acquiree as a whole (including non-controlling interests) at fair value and goodwill isrecognized including the portion of goodwill attributable to the non-controlling interests; or non-controllinginterest is measured as a proportional interest in the fair value of the acquiree's net identifiable assets andgoodwill is recognized only for the acquirer’s share. The Company elected the method of measuring noncontrolling interest as a proportional interest in the fair value of the acquiree's net identifiable assets andrecognizing goodwill only for the acquirer’s share. Capital surplus is recognized when non-controllinginterests are additionally acquired after the date when control was obtained.

25/39

Reconciliation of Profit or Loss and Comprehensive Income for the First Half of the Previous
Fiscal Year (from April 1, 2017 to September 30, 2017)(Condensed Quarterly Consolidated Statements of Profit or Loss)(In millions of yen)
Presentation under US GAAPNet sales
Cost of sales
Selling, general andadministrative expenses
Loss on impairment of longlived assets
Operating income
Other income
Interest and Dividends
Equity in earnings ofaffiliated companies
Other
Other expenses
Interest
Other

Income before income taxes
Income taxes
Net income
Net income attributable tothe noncontrolling interests
Net income attributable to
Mitsubishi Electric Corp.

Recognition
Reand
US GAAP classification measurement
differences

2,076,342
1,412,241－(124)

35,42550,442513,273482(17,742)

1,532－
149,296
41,701
4,885(1,532)(387)
787－
21,289

－
17
2,742
－
(21,289)

9,967
26,849
5,754
1,439
4,315

(9,967)(26,849)－
19(4,315)

－
－
－
67
－

IFRS

2,111,767 Net sales
Cost of sales
1,462,559
Selling, general andadministrative expenses
496,013－
Other profit (loss)(370)
152,825 Operating income－
Financial income
4,885
－
－
－
1,525
－

－
185,243
48,529136,714

9,967
(477)
(477)
－

20
(18,594)(8,666)(9,928)

9,987
166,172
39,386
126,786

5,590

－

224

5,814

131,124－(10,152)

120,972

26/39

Presentation under IFRSFinancial expenses
Share of profit ofinvestments accounted forusing the equity method
Income before income taxes
Income tax expenses
Net income
Net income attributable to:Non-controlling interests
Mitsubishi Electric Corp.
stockholders

(Condensed Quarterly Consolidated Statements of Comprehensive Income)
Presentation under US GAAPNet income
Other comprehensive income(loss), net of tax

Unrealized gains (losses)
on securities
Pension liability
adjustments

Foreign currencytranslation adjustments
Unrealized gains (losses)
on derivative instruments

Total
Comprehensive income
Comprehensive income
attributable tothe noncontrolling interests
Comprehensive income
attributable to
Mitsubishi Electric Corp.

Recognition
Reand
US GAAP classification measurement
differences

IFRS(In millions of yen)

Presentation under IFRS

126,786 Net income(Other comprehensive income(loss), net of tax)
Items that will not bereclassified to net income
Financial assets measured atfair value through othercomprehensive income
9,721
Remeasurements of defined－
benefit pension plans
Share of othercomprehensive income ofinvestments accounted forusing the equity method
597
10,318 Subtotal
Items that may bereclassified to net income
Exchange differences ontranslating foreign
operations
31,559Net changes in the fairvalue of cash flow hedges
5
Share of othercomprehensive income ofinvestments accounted forusing the equity method(185)
31,379 Subtotal
Total other comprehensive
41,697 income
168,483 Comprehensive income
Comprehensive income
attributable to:136,714－(9,928)(3,296)(597)

13,614

17,869(342)(17,527)

－
－

939
－

(342)
(4,255)

26,665

128

4,766

(82)

14

73

－
－

(142)
－

(43)
4,796

41,156
177,870－－541(9,387)

7,625

－

163

7,788

Non-controlling interests

170,245－(9,550)160,695

Mitsubishi Electric Corp.
stockholders

27/39

Reconciliation of Profit or Loss and Comprehensive Income for the Second Quarter of thePrevious Fiscal Year (from July 1, 2017 to September 30, 2017)(Condensed Quarterly Consolidated Statements of Profit or Loss)(In millions of yen)
Presentation under US GAAPNet sales
Cost of sales
Selling, general andadministrative expenses
Loss on impairment of longlived assets
Operating income
Other income
Interest and Dividends
Equity in earnings ofaffiliated companies
Other
Other expenses
Interest
Other

Income before income taxes
Income taxes
Net income
Net income attributable tothe noncontrolling interests
Net income attributable to
Mitsubishi Electric Corp.

Recognition
Reand
US GAAP classification measurement
differences

1,070,743
731,009

－
(85)

7,088
14,670263,152

21(8,770)1,532－
75,05013,387
1,298(1,532)
(530)
1,066
－
1,532

－
28
1,216
－
(1,363)

7,562
4,527
2,442
762
1,680

(7,562)(4,527)－(4)(1,680)

－
－
－
4
－

IFRS

1,077,831 Net sales
Cost of sales
745,594
Selling, general andadministrative expenses
254,403－
Other profit (loss)(502)
77,332 Operating income－
Financial income
1,467
－
－
－
762
－

－
85,995
19,28866,707

7,562
(245)
(245)
－

127
(24)
(893)
869

7,689
85,72618,15067,576

3,327

－

262

3,589

63,380－607

63,987

28/39

Presentation under IFRSFinancial expenses
Share of profit ofinvestments accounted forusing the equity method
Income before income taxes
Income tax expenses
Net income
Net income attributable to:Non-controlling interests
Mitsubishi Electric Corp.
stockholders

(Condensed Quarterly Consolidated Statements of Comprehensive Income)
Presentation under US GAAPNet income
Other comprehensive income(loss), net of tax

Unrealized gains on
securities
Pension liability
adjustments

Foreign currencytranslation adjustments
Unrealized gains (losses)
on derivative instruments

Total
Comprehensive income
Comprehensive income
attributable tothe noncontrolling interests
Comprehensive income
attributable to
Mitsubishi Electric Corp.

Recognition
Reand
US GAAP classification measurement
differences

IFRS(In millions of yen)

Presentation under IFRS

67,576 Net income(Other comprehensive income(loss), net of tax)
Items that will not bereclassified to net income
Financial assets measured atfair value through othercomprehensive income
18,855Remeasurements of defined－
benefit pension plans
Share of othercomprehensive income ofinvestments accounted forusing the equity method
310
19,165 Subtotal
Items that may bereclassified to net income
Exchange differences ontranslating foreign
operations
19,019Net changes in the fairvalue of cash flow hedges
2
Share of othercomprehensive income ofinvestments accounted forusing the equity method
672
19,693 Subtotal
Total other comprehensive
38,858 income
106,434 Comprehensive income
Comprehensive income
attributable to:66,707－869

18,342

(310)

823

5,392

(163)

(5,229)

－
－

473
－

(163)
(4,569)21,945(727)(2,199)

(19)

11

10

－
－

716
－

(44)
(2,233)45,660112,367－－(6,802)(5,933)

5,113

－

153

5,266

Non-controlling interests

107,254－(6,086)

101,168

Mitsubishi Electric Corp.
stockholders

29/39

Reconciliation of Profit or Loss and Comprehensive Income for the Previous Fiscal Year(from April 1, 2017 to March 31, 2018)(Consolidated Statements of Profit or Loss)(In millions of yen)
Presentation under US GAAP

Recognition
Reand
US GAAP classification measurement
differences

IFRS

Presentation under IFRSNet sales
Cost of sales
Selling, general andadministrative expenses
Loss on impairment oflong-lived assets

4,431,198
3,030,902－－

13,22653,0244,444,424 Net sales
3,083,926 Cost of sales

1,061,778

729(34,623)

1,027,884

19,881

Operating income
Other income
Interest and Dividends
Equity in earnings ofaffiliated companies
Other
Other expenses
Interest
Other

318,637
60,414
8,611(19,881)(20,990)(1,838)－23,637－
15,82010,645－(23,637)

22,261
29,542
14,473
2,727
11,746(22,261)(29,542)－
4,726(11,746)

－
－
－
(657)
－

－

－
Income before income taxes
Income taxes
Net income
Net income attributable tothe noncontrolling interests
Net income attributable to
Mitsubishi Electric Corp.

－(5,170) Other profit (loss)
327,444 Operating income－
8,611 Financial income
－
－
－
6,796
－

364,578
82,239282,339

22,261
(723)
(723)
－

1,686
(10,649)
5,291(15,940)

23,947353,206
86,807
266,399

10,459－185

10,644

271,880－(16,125)

255,755

30/39

Selling, general andadministrative expenses

Financial expenses
Share of profit ofinvestments accounted forusing the equity method
Income before income taxes
Income tax expenses
Net income
Net income attributable to:Non-controlling interests
Mitsubishi Electric Corp.
stockholders

(Consolidated Statements of Comprehensive Income)
Presentation under US GAAPNet income
Other comprehensive income(loss), net of tax

Unrealized gains (losses)
on securities
Pension liability
adjustments

Foreign currencytranslation adjustments
Unrealized gains (losses)
on derivative instruments

Total
Comprehensive income
Comprehensive income
attributable tothe noncontrolling interests
Comprehensive income
attributable to
Mitsubishi Electric Corp.

(In millions of yen)

Recognition
Reand
US GAAP classification measurement
differences

282,339－(15,940)

IFRS

Presentation under IFRS

266,399 Net income(Other comprehensive income(loss), net of tax)
Items that will not bereclassified to net income
Financial assets measured atfair value through othercomprehensive income
Remeasurements of defined
benefit pension plans
Share of othercomprehensive income ofinvestments accounted forusing the equity method
Subtotal
Items that may bereclassified to net income
Exchange differences ontranslating foreign
operations
Net changes in the fairvalue of cash flow hedges
Share of othercomprehensive income ofinvestments accounted forusing the equity method
Subtotal
Total Other comprehensive
incomeComprehensive income
Comprehensive income
attributable to:(14,875)

392

14,431(52)

15,857

(596)

6,062

21,323

－
－

204
－

(34)
20,459170
21,441

17,023(1,908)

1,877

16,992

(88)

(6)

23

(71)

－
－

1,914
－

(45)
1,855

1,869
18,79017,917300,256－－

22,314
6,374

40,231
306,630

11,852－

68

11,920Non-controlling interests

288,404－

6,306

294,710

Mitsubishi Electric Corp.
stockholders

31/39

Notes to Reconciliation of Profit or Loss and Comprehensive Income
The principal effects of transition to IFRS in the reconciliation of profit or loss and comprehensive income above
are as follows:(1) Reclassification
The main elements of reclassification are as follows:(a) In accordance with the presentation provisions under IFRS, financial income and financial expenses arepresented separately.
(b) In accordance with the presentation provisions under IFRS, part of other income and other expenses, etc. is
included and presented in operating profit.
(c) Unrealized gains (losses) on securities, pension liability adjustments, foreign currency translation adjustments
and unrealized gains (losses) on derivative instruments in other comprehensive income that are attributable toequity investees are reclassified in accordance with the presentation provisions under IFRS.
(2) Recognition and measurement differences
The main elements of recognition and measurement differences are as follows:(a) Reconciliation of sales and cost of sales
Under US GAAP, if amounts of construction contracts cannot be reliably estimated, all construction costs andconstruction revenue are recognized when the construction is complete.
Under IFRS, on the other hand, revenue from a performance obligation satisfied over time is recognizedusing the cost recovery method if the outcome cannot be reliably estimated. Revenues using the cost recovery
method are only recognized for costs incurred to the extent that it is probable that the cost will be recovered
and costs are recognized as expenses in the period in which they are incurred.
(b) Equity instruments
Non-marketable equity instruments are recognized at their cost under US GAAP. If fair value of equity
instruments has decreased and the decrease is considered not to be temporary, impairment loss is recognized
for the amount of the cost of the equity instruments in excess of fair value. Gains or losses on the sale of theseequity instruments are recognized in profit or loss.
Under IFRS, on the other hand, equity instruments are recognized at fair value irrespective of whether there
is an active market. Because it is permitted to recognize changes in fair value in other comprehensive income,the Company and its consolidated subsidiaries have elected to recognize changes in fair value of equity
instruments in other comprehensive income. Accordingly, loss on impairment and gains or losses on the saleof equity instruments recognized in profit or loss under US GAAP are recognized in other comprehensive
income as well.

Notes to Reconciliation of Cash Flows
There are no significant differences in the statement of cash flows resulting from transition from US GAAP to
IFRS.
Cautionary Statement
The Mitsubishi Electric Group (hereafter “the Group”) is involved in development, manufacture and sales in awide range of fields including Energy and Electric Systems, Industrial Automation Systems, Information andCommunication Systems, Electronic Devices and Home Appliances, and these operations extend globally, not only
inside Japan, but also in North America, Europe, Asia and other regions. While the statements herein are based on
certain assumptions and premises that the Group trusts and considers to be reasonable under the circumstances on
the date of announcement, actual financial standings and operating results are subject to change due to any of thefactors as contemplated hereunder and/or any additional factor unforeseeable as of the date of this announcement.
Such factors materially affecting the expectations expressed herein shall include but are not limited to thefollowing:(1) Important trends
The Group’s operations may be affected by trends in the global economy, social conditions, laws, tax codes
and regulations.
(2) Foreign currency exchange rates
Fluctuations in foreign currency markets may affect the Group’s sales of exported products and purchases ofimported materials that are denominated in U.S. dollars or euros, as well as its Asian production bases’ salesof exported products and purchases of imported materials that are denominated in foreign currencies.

32/39

(3) Stock markets
A fall in stock market prices may cause a decline in value of the Group’s marketable securities and pension
assets.
(4) Supply/demand balance for products and procurement conditions for materials and components
A decline in prices and shipments due to changes in the supply/demand balance, as well as an increase inmaterial prices due to a worsening of material and component procurement conditions, may adversely affect
the Group’s performance.
(5) Fund raising
An increase in interest rates, the yen interest rate in particular, would increase the Group’s interest expenses.
(6) Significant patent matters
Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related
businesses.
(7) Environmental legislation or relevant issues
The Group may incur losses or expenses owing to changes in environmental legislation or the occurrence ofenvironmental issues. Such changes in legislation or the occurrence of environmental issues may also impact
manufacturing and all corporate activities of the Group.
(8) Flaws or defects in products or services
The Group may incur losses or expenses resulting out of flaws or defects in products or services, and thelowered reputation of the quality of all its products and services may affect the entire Group.
(9) Litigation and other legal proceedings
The Group’s operations may be affected by lawsuits or other legal proceedings against Mitsubishi Electric, its
subsidiaries and/or equity-method affiliated companies.
(10) Disruptive changes
Disruptive changes in technology, development of products using new technology, timing of production andmarket introduction may adversely affect the Group’s performance.
(11) Business restructuring
The Group may record losses due to restructuring measures.
(12) Information security
The performance of the Group may be affected by computer virus infections, unauthorized access and otherunpredictable incidents that lead to the loss or leakage of personal information held by the Group or
confidential information regarding the Group’s business such as its technology, sales and other operations.
(13) Natural disasters
The Group’s operations, particularly manufacturing activities, may be affected by the occurrence ofearthquakes, typhoons, tsunami, fires and other large-scale disasters.
(14) Other significant factors
The Group’s operations may be affected by the outbreak of social or political upheaval due to terrorism, war,
pandemic by new strains of influenza and other diseases, or other factors.
###
About Mitsubishi Electric Corporation
With nearly 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 electricaland electronic equipment used in information processing and communications, space development and satellite
communications, consumer electronics, industrial technology, energy, transportation and building equipment.
Embracing the spirit of its corporate statement, Changes for the Better, and its environmental statement, Eco
Changes, Mitsubishi Electric endeavors to be a global, leading green company, enriching society withtechnology. The company recorded consolidated group sales of 4,444.4 billion yen (in accordance with IFRS;
US$ 41.9 billion*) in the fiscal year ended March 31, 2018. For more information visit:
www.MitsubishiElectric.com*At an exchange rate of 106 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on
March 31, 201833/39

【Supplementary Materials】

October 29, 2018
Mitsubishi Electric Corporation

Fiscal 2019 First-half Consolidated Results
1. Financial Results
2. Net Sales and Operating Income by Segment
3. Overseas Net Sales by Segment
4. Orders by Segment
5. Foreign Exchange Rates for Recording Net Sales andImpact of Exchange Rate Fluctuations on Net Sales
6. Capital Expenditures
7. Depreciation of Tangible Fixed Assets and Other
8. Research and Development Expenditures<Reference>
1. Quarterly Financial Results for Fiscal 2019
2. Quarterly Net Sales and Operating Income by Segment for Fiscal 2019

3. Difference between US GAAP and IFRS

34/39

FY ’18: Apr. 1, 2017 – Mar. 31, 2018
FY ’19: Apr. 1, 2018 – Mar. 31, 2019
1. Financial Results(Consolidated)(Billions of yen, year-on-year % change)

FY '18FY '19

1st Half(Actual)2,111.7
152.8

Full Year(Actual)4,444.4
327.4

Income before income taxes

166.1

353.2

141.2

(-15)

335.0

(-5)

Net income attributable to
Mitsubishi Electric Corp.
stockholders

120.9

255.7

102.3

(-15)

240.0

(-6)

Net sales
Operating income

1st Half(Actual)2,170.1
(+3)
125.9
(-18)

Full Year(Forecast)
4,510.0
(+1)
305.0
(-7)

*Figures in parentheses in the right column indicate change from the previous corresponding period.
2. Net Sales and Operating Income by Segment(Billions of yen, year-on-year % change)

FY '18Net Sales

Energy and Electric
Systems

Operating Income

Industrial Automation
Systems

Operating Income

Information andCommunication Systems

Operating Income

Electronic Devices
Home Appliances

Net Sales
Net Sales
Net Sales
Operating Income

Net Sales
Operating Income

Net Sales

OthersOperating Income

Subtotal
Eliminations and other
Consolidated total

Net Sales
Operating Income

Net Sales
Operating Income

Net Sales
Operating Income

1st Half(Actual)
557.1
10.6
703.7
96.3
191.2
3.2
99.5
7.2
539.2
39.4
310.7
9.6
2,401.6
166.5-289.8-13.7
2,111.7
152.8

FY '19Full Year(Actual)1,253.0
65.4
1,444.9
187.3
438.1
11.3
202.2
14.1
1,049.3
55.4
659.0
24.0
5,046.8
357.8-602.4-30.3
4,444.4
327.4

3. Overseas Net Sales by Segment(Billions of yen, year-on-year % change)

FY '19FY '18Energy and Electric Systems
Industrial Automation Systems
Information and Communication Systems

Electronic Devices
Home Appliances
OthersConsolidated total
Ratio of overseas net sales to total sales

1st Half(Actual)568.6(+2)
15.5 (+46)
730.3
(+4)
77.9
(-19)
186.8
(-2)
2.5
(-23)
101.8
(+2)
1.2
(-82)
557.1
(+3)
33.6
(-15)
327.8
(+5)
10.3
(+7)
2,472.7
(+3)
141.3
(-15)
-302.6-15.3
2,170.1
(+3)
125.9
(-18)

1st Half(Actual)
204.0
430.8
5.6
57.0
294.3
9.2
1,001.2
47.4%

Full Year(Actual)
422.1
865.8
13.1
115.8
568.7
19.7
2,005.4
45.1%

35/39

1st Half(Actual)
193.3
(-5)
431.8
(0)
4.7
(-15)
56.3
(-1)
306.1
(+4)
8.8
(-5)
1,001.3(0)
46.1%

Full Year(Forecast)
1,290.0
(+3)
70.0
(+7)
1,460.0
(+1)
174.0
(-7)
430.0
(-2)
10.0
(-12)
210.0
(+4)
6.0
(-58)
1,070.0
(+2)
52.0
(-6)
670.0
(+2)
25.0
(+4)
5,130.0
(+2)
337.0
(-6)
-620.0-32.0
4,510.0
(+1)
305.0
(-7)

4. Orders by Segment(Consolidated)(Billions of yen, year-on-year % change)

FY '19Energy and Electric Systems
Industrial Automation Systems
Information and Communication Systems

Electronic Devices

1st Half(Actual)
658.0
718.5
167.3
100.4

(+2)
(+3)
(+2)
(+3)

*Home Appliances and Others segments have few products made on order, thus not included in the chart above.

5. Foreign Exchange Rates for Recording Net Sales and Impact of Exchange Rate Fluctuations on Net Sales
FY '18Averageexchange rate

1st Half(Actual)
¥111
¥128
¥16.5
About ¥47.0 billion
increase

Full Year(Actual)
¥111
¥130
¥16.8
About ¥75.0 billion
increase

1st Half(Actual)
¥111
¥130
¥16.6
About ¥2.0 billion
increase

US$

About ¥10.0 billion
increase

About ¥9.0 billion
increase

About ¥1.0 billion
decrease

Euro

About ¥13.0 billion
increase

About ¥26.0 billion
increase

About ¥3.0 billion
increase

CNY

About ¥5.0 billion
increase

About ¥11.0 billion
increase

About ¥2.0 billion
increase

US$
Euro
CNY
Consolidated
total

Impact ofexchange rate
fluctuations
on net sales

FY '1936/39

2nd Half(Forecast)
¥105
¥125
¥16.0

6. Capital Expenditures(Billions of yen, year-on-year % change)

Energy and Electric Systems
Industrial Automation Systems
Information and Communication Systems

Electronic Devices
Home Appliances
OthersCommonConsolidated total

FY '18Full Year(Actual)FY '19Full Year(Forecast)

29.5
79.2
22.7
17.7
34.2
8.9
12.0
204.2

38.0
103.0
20.0
39.0
37.0
5.0
8.0
250.0

(+29)
(+30)
(-12)
(+120)
(+8)
(-44)
(-33)
(+22)

7. Depreciation of Tangible Fixed Assets and Other(Billions of yen, year-on-year % change)

FY '18

Consolidated

1st Half(Actual)
70.0

FY '19Full Year(Actual)
156.9

8. Research and Development Expenditures(Billions of yen, year-on-year % change)

Consolidated
Ratio to net sales

FY '18Full Year(Actual)
210.3
4.7%

FY '19Full Year(Forecast)
225.0
(+7)
5.0%

37/39

1st Half(Actual)69.7(0)Full Year(Forecast)
165.0 (+5)

＜Reference＞
1. Quarterly Financial Results for Fiscal 2019
(Consolidated)(Billions of yen, year-on-year % change)

FY '18
Q1(Actual)
Net sales

Q2(Actual)FY '19
1st Half(Actual)Q1(Actual)Q2(Actual)(2) 1,119.1

1st Half(Actual)1,033.9

1,077.8

2,111.7

1,050.9(4) 2,170.1(3)

Operating income

75.4

77.3

152.8

61.5

(-18)

64.3

(-17)

125.9

(-18)

Income before income taxes

80.4

85.7

166.1

68.7

(-15)

72.5

(-15)

141.2

(-15)

Net income attributable to
Mitsubishi Electric Corp.

56.9

63.9

120.9

47.5

(-17)

54.7

(-14)

102.3

(-15)

2. Quarterly Net Sales and Operating Income by Segment for Fiscal 2019
(Billions of yen, year-on-year % change)

FY '18
Q1(Actual)Energy and Electric
Systems
Industrial Automation
Systems
Information andCommunication Systems
Electronic Devices

Home Appliances

Others

Net sales

Eliminations and other

Consolidated total

288.5

1st Half(Actual)Q1(Actual)

557.1

267.3

(0)

Q2
(Actual)

1st Half(Actual)

301.2

568.6

(+4)

6.7

3.9

10.6

5.9

(-11)

350.8

352.8

703.7

360.9

(+3)

369.3

(+5)

730.3

(+4)

Operating income

50.7

45.5

96.3

44.8

(-12)

33.1

(-27)

77.9

(-19)

Net sales

90.0

101.1

191.2

79.7

(-11)

107.0

(+6)

186.8

(-2)

Operating income

-1.7

5.0

3.2

-1.8

(－)

4.3

(-14)

2.5

(-23)

Net sales

48.1

51.4

99.5

51.4

(+7)

50.4

(-2)

101.8

(+2)

Operating income

Net sales

9.5 (+143)(+2)

Net sales

Operating income

15.5 (+46)

3.0

4.1

7.2

1.4

(-51)

-0.2

(－)

1.2

(-82)

269.8

269.3

539.2

280.3

(+4)

276.7

(+3)

557.1

(+3)

Operating income

24.1

15.2

39.4

20.0

(-17)

13.6

(-11)

33.6

(-15)

Net sales

144.9

165.8

310.7

155.6

(+7)

172.1

(+4)

327.8

(+5)

2.0

7.6

9.6

1.1

(-42)

9.1 (+20)

10.3

(+7)

Operating income

Subtotal

268.5

Q2(Actual)FY '191,172.3

1,229.3

2,401.6

1,195.6

Operating income

84.9

81.6

166.5

71.7

Net sales-138.3-151.4-289.8-144.6

Net sales

Operating income

Net sales
Operating income(+2) 1,277.0(+4) 2,472.7

(+3)

(-16)

(-15)

(-15)

69.6
-157.9141.3-302.6

-9.4

-4.3

-13.7

-10.1

-5.2

-15.3

1,033.9

1,077.8

2,111.7

1,050.9(+2) 1,119.1(+4) 2,170.1

(+3)

75.4

77.3

152.8

61.5

(-18)

(-17)

(-18)

38/39

64.3

125.9

3. Difference between US GAAP and IFRS
1) Financial Results(Consolidated)(Billions of yen)

FY '18Net sales
Operating income
Income before income taxes
Net income attributable to
Mitsubishi Electric Corp.
stockholders

US GAAP
2,076.3
149.2
185.2

1st Half(Actual)IFRS
2,111.7
152.8
166.1

Difference
35.4
3.5
-19.0

131.1

120.9

-10.1

US GAAP
4,431.1
318.6
364.5

Full Year(Actual)IFRS
4,444.4
327.4
353.2

Difference
13.2
8.8
-11.3

271.8

255.7

-16.1

* "Net income attributable to Mitsubishi Electric Corp. stockholders'' is described as "Net income attributable to Mitsubishi Electric Corp.'' under US GAAP.

2) Net Sales and Operating Income by Segment(Billions of yen)

FY '18US GAAP

1st Half

Full Year(Actual)(Actual)IFRS

Difference

US GAAP

IFRS

Difference

Net Sales

527.8

557.1

29.2

1,241.9

1,253.0

11.1

Operating Income

10.1

10.6

0.5

51.7

65.4

13.7

Net Sales
Industrial
Automation Systems Operating Income

703.7

703.7

－

1,444.9

1,444.9

－

94.8

96.3

1.4

190.8

187.3

-3.4

Net Sales
Information andCommunication Systems Operating Income

185.0

191.2

6.1

436.0

438.1

2.1

2.8

3.2

0.4

11.9

11.3

-0.6

Net Sales

99.5

99.5

－

202.2

202.2

－

Operating Income

6.9

7.2

0.2

14.5

14.1

-0.3

Net Sales

539.2

539.2

－

1,049.3

1,049.3－

Operating Income

38.4

39.4

0.9

56.0

55.4

-0.5

Net Sales

362.3

310.7

-51.6

764.3

659.0

-105.2

Operating Income

9.8

9.6

-0.1

23.9

24.0

0.1

Net Sales

2,417.8

2,401.6-16.1

5,138.9

5,046.8-92.0

Operating Income

163.0

166.5

3.5

349.0

357.8

8.8

Net Sales-341.4-289.851.6-707.7-602.4

105.2

Operating Income

-13.7

-13.7

－

-30.3

-30.3

－

Net Sales

2,076.3

2,111.7

35.4

4,431.1

4,444.4

13.2

Operating Income

149.2

152.8

3.5

318.6

327.4

8.8

Energy and Electric
Systems

Electronic Devices

Home Appliances

OthersSubtotal

Eliminations and other

Consolidated total

39/39