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

No. 3040

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 Quarter of Fiscal 2017TOKYO, July 28, 2016 – Mitsubishi Electric Corporation (TOKYO: 6503) announced today its
consolidated financial results for the first quarter ended June 30, 2016, of the current fiscal year ending
March 31, 2017 (fiscal 2017).
Consolidated Financial Results
Net sales:
Operating income:
Income before income taxes:
Net income attributable to
Mitsubishi Electric Corp.:

927.0 billion yen
59.7 billion yen
61.0 billion yen(6% decrease from the same quarter last year)(9% increase from the same quarter last year)(9% decrease from the same quarter last year)

42.9 billion yen(7% decrease from the same quarter last year)

The business environment in the first quarter (from April through June 2016) of the fiscal year 2017
experienced a gradual slowdown continuing in China and other East Asian markets and weakness in personal
consumption in Japan, while the economy showed strong signs of expansion in the U.S., and a gradual trendof economic recovery continued in Europe. In addition, the yen became stronger against foreign currencies
compared to the same period of the previous year, becoming radically stronger with the impact of the U.K.’s
withdrawal from the European Union at the end of June.
Under these circumstances, consolidated net sales in the first quarter decreased by 6% compared to the same
period of the previous fiscal year to 927.0 billion yen, owing to such factors as decreased sales in the
Industrial Automation Systems, Information and Communication Systems and Electronic Devices.
Consolidated operating income increased by 9% compared to the same period of the previous fiscal year to59.7 billion yen, due to increased profits in the Energy and Electric Systems and Home Appliances segments.

Consolidated Financial Results by Business Segment
Energy and Electric Systems
Total sales:
238.0 billion yen(1% increase from the same quarter last year)
Operating income :3.9 billion yen(10.5 billion yen increase from the same quarter last year)

1/14

The social infrastructure systems business saw a decrease in orders compared to the same period of theprevious fiscal year due primarily to a decrease in the transportation systems business inside and outside
Japan. Sales, meanwhile, increased compared to the same period of the previous fiscal year due mainly to anincrease in the power systems business in Japan and in the transportation systems business outside Japan.
The building systems business remained substantially unchanged in orders, while sales decreased
compared to the same period of the previous fiscal year due primarily to negative influences caused by thestronger yen.
As a result, total sales for this segment increased by 1% from the same period of the previous
fiscal year. Operating income increased by 10.5 billion yen from the same period of the previous fiscal year
due primarily to a shift in project portfolios.
Industrial Automation Systems
Total sales:
302.2 billion yen
Operating income:32.4 billion yen(8% decrease from the same quarter last year)(10.4 billion yen decrease from the same quarter last year)

The factory automation systems business saw decreases in both orders and sales from the same period of theprevious fiscal year due mainly to a slowdown in capital expenditures outside Japan as well as low capital
expenditures in Japan in the manufacturing industry, along with negative influences caused by the 2016
Kumamoto earthquakes and the stronger yen.
The automotive equipment business saw decreases in both orders and sales from the same periodof the previous fiscal year due primarily to negative influences caused by the stronger yen, despite growth in
the car sales markets in Europe and other regions.
As a result, total sales for this segment decreased by 8% from the same period of the previous
fiscal year. Operating income decreased by 10.4 billion yen from the same period of the previous fiscal year
due primarily to a decrease in sales.
Information and Communication Systems
Total sales:
73.5 billion yen
Operating income (loss):(3.1 billion yen)

(23% decrease from the same quarter last year)(1.4 billion yen decline from the same quarter last year)

The telecommunications systems business saw decreases in both orders and sales compared to the same
period of the previous fiscal year due primarily to the sellout of an affiliated company in the beginning of
this fiscal year and a decrease in communications infrastructure equipment.
The information systems and service business saw a decrease in sales compared to the same periodof the previous fiscal year, owing to a decrease in the IT infrastructure service business.
The electronic systems business saw decreases in both orders and sales compared to the same
period of the previous fiscal year mainly due to a decrease in the defense systems business.
As a result, total sales for this segment decreased by 23% compared to the same period of theprevious fiscal year. Operating income declined by 1.4 billion yen compared to the same period of theprevious fiscal year due primarily to a decrease in sales.
Electronic Devices
Total sales:
Operating income:39.0 billion yen
0.9 billion yen(41% decrease from the same quarter last year)(11.3 billion yen decrease from the same quarter last year)

The electronic devices business saw an increase in orders from the same period of the previous fiscal year
due to an increase in optical communication devices, while sales decreased compared to the same period of
the previous fiscal year due to a decrease in demand for power modules, along with negative influences
caused by the 2016 Kumamoto earthquakes and the stronger yen.
As a result, total sales for this segment decreased by 41% compared to the same period of theprevious fiscal year. Operating income decreased by 11.3 billion yen compared to the same period of theprevious fiscal year due primarily to a decrease in sales.

2/14Home Appliances
Total sales:
Operating income:

261.9 billion yen
31.7 billion yen(3% increase from the same quarter last year)(15.5 billion yen increase from the same quarter last year)

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 residential and industrial air conditioners in Japan as well as air
conditioners in Europe, despite negative influences caused by the stronger yen.
Operating income increased by 15.5 billion yen compared to the same period of the previous fiscal
year largely due to an increase in sales.
OthersTotal sales:
Operating income:156.3 billion yen
2.6 billion yen(4% decrease from the same quarter last year)(1.7 billion yen increase from the same quarter last year)

Sales decreased by 4% compared to the same period of the previous fiscal year mainly due to a decrease insales at affiliated companies involved in materials procurement.
Operating income increased by 1.7 billion yen compared to the same period of the previous fiscal
year due primarily to cost reductions.

Financial Standing
An Analysis on the Status of Assets, Liabilities, Equity and Cash Flow on a Consolidated Basis
The Company’s total assets as of the end of this fiscal quarter decreased from the end of the previous fiscal
year by 212.6 billion yen to 3,847.2 billion yen. The change in the balance of total assets is mainly
attributable to increases in the balances of cash and cash equivalents by 20.9 billion yen, and of inventories
by 35.4 billion yen as a result of work-in-process as recorded in commensurate with progress in job orders
under pertinent contracts, while trade receivables decreased by 244.2 billion yen primarily as a result ofcredit collection.
Total liabilities decreased from the end of the previous fiscal year by 107.2 billion yen to 2,015.1 billion yen.
The outstanding balances of debts and corporate bonds decreased by 0.5 billion yen from the end of theprevious fiscal year to 403.4 billion yen, resulting in a rise in the ratio of interest bearing debt to total assets
to 10.5%, representing a 0.5 point increase compared to the end of the previous fiscal year. Retirement andseverance benefits increased by 21.9 billion yen, mainly resulting from a decrease in pension assets
following a fall in stock prices, while the outstanding balance of trade payables decreased by 81.8 billion yen
and other current liabilities decreased by 40.7 billion yen.
Mitsubishi Electric Corporation shareholders’ equity decreased by 100.2 billion yen compared to the end of
the previous fiscal year to 1,738.5 billion yen. Shareholders’ equity ratio was recorded at 45.2%,
representing a 0.1 point decrease compared to the end of the previous fiscal year. The changes referred toabove primarily resulted from dividend payment of 38.6 billion yen along with a decrease in accumulated
other comprehensive income by 103.5 billion yen caused by such factors as the stronger yen and fallingstock prices, despite an increase from recording a net income attributable to Mitsubishi Electric Corporationof 42.9 billion yen.
Cash flows from operating activities for this quarter increased by 9.2 billion yen compared to the same
period of the previous fiscal year to 109.2 billion yen (cash in). Cash flows from investing activities
decreased by 17.2 billion yen compared to the same period of the previous fiscal year to 22.6 billion yen(cash out) due to increases in proceeds from sale of short-term investments and investment securities andother factors. As a result, free cash flow was 86.5 billion yen (cash in). Cash flows from financing activities
were 41.1 billion yen (cash out) mainly due to dividend payment.

3/14

Forecast for Fiscal 2017
With negative influences caused by the yen becoming stronger against currencies mainly in Europe and in
Asia, Mitsubishi Electric’s business performance for the current fiscal year is expected to fall below its
previous forecast mainly in the Industrial Automation Systems and Energy and Electric Systems segments.
Therefore, the consolidated earnings forecast for the first half of fiscal 2017, ending September 30, 2016,
and for fiscal 2017, ending March 31, 2017, have been revised from the announcement on April 28, 2016 asstated below.
First Half of Fiscal 2017 Consolidated Earnings Forecast
Previous forecast
Consolidated(announced Apr. 28)
Net sales:
1,990.0 billion yen 1,960.0 billion yen
Operating income:
95.0 billion yen
90.0 billion yen
Income before
115.0 billion yen
100.0 billion yen
income taxes:
Net income
attributable to85.0 billion yen
70.0 billion yen
Mitsubishi Electric
Corp.:

Fiscal 2017 Consolidated Earnings Forecast
Previous forecast
Consolidated(announced Apr. 28)
Net sales:
4,280.0 billion yen 4,180.0 billion yen
Operating income:
260.0 billion yen
235.0 billion yen
Income before
280.0 billion yen
255.0 billion yen
income taxes:
Net income
attributable to200.0 billion yen
175.0 billion yen
Mitsubishi Electric
Corp.:

Current forecast(5% decrease from the same period last year)(29% decrease from the same period last year)(25% decrease from the same period last year)(25% decrease from the same period last year)

Current forecast(5% decrease from the previous fiscal year)(22% decrease from the previous fiscal year)(20% decrease from the previous fiscal year)(23% decrease from the previous fiscal year)

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.

4/14

Consolidated Financial Results Summary(In billions of yen except where noted)
FY ’16 Q1 (A)(Apr. 1, 2015 –Jun. 30, 2015)

FY ’17 Q1 (B)(Apr. 1, 2016 –Jun. 30, 2016)

B–A

B/A (%)Net sales

988.4

927.0

(61.3)

94

Operating income

54.6

59.7

5.0

109

Income before income taxes

67.1

61.0

(6.1)

91

46.3

42.9

(3.4)

93

21.57 yen

19. 99 yen(1.58 yen)

93

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

1) Consolidated financial charts made in accordance with U.S. GAAP.
2) The Company has 218 consolidated subsidiaries.

5/14

Consolidated Profit and Loss Statement(In millions of yen)

Net sales
Cost of sales
Selling, general andadministrative expenses
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.

FY ’16 Q1(Apr. 1, 2015 –Jun. 30, 2015)
% of
(A)
total
988,440100.0
691,048
69.9

FY ’17 Q1(Apr. 1, 2016 –Jun. 30, 2016)
% of
(B)
total
927,077
100.0
627,503
67.7(61,363)(63,545)

B/A
(%)
94
91

242,760

24.6

239,870

25.9(2,890)99

54,632
17,215
3,034

5.5
1.8
0.3

59,70426,540
2,861

6.4
2.9
0.3

5,072
9,325
(173)

109
154
94

5,049

0.5

3,587

0.4

(1,462)

71

9,132
4,670
926
3,744
67,177
17,49849,679

1.0
0.5
0.1
0.4
6.8
1.8
5.0

20,092
25,235759
24,47661,00914,76046,249

2.2
2.7
0.1
2.6
6.6
1.6
5.0

10,96020,565(167)
20,732(6,168)(2,738)(3,430)

220
540
82
654
91
84
93

3,362

0.3

3,335

0.4

(27)

99

46,317

4.7

42,914

4.6(3,403)93

B–A

Consolidated Comprehensive Income Statement(In millions of yen)

Net income
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments
Pension liability adjustments
Unrealized gains (losses) on securities
Unrealized gains (losses) on derivative instruments
Total
Comprehensive income (loss)
Comprehensive income (loss) attributable tothe noncontrolling interests
Comprehensive income (loss) attributable to
Mitsubishi Electric Corp.

6/14

FY ’16 Q1 (A)(Apr. 1, 2015 –Jun. 30, 2015)
49,679FY ’17 Q1 (B)(Apr. 1, 2016 –Jun. 30, 2016)46,2495,531
10,872
6,807
37
23,24772,926(67,544)(14,840)(27,967)(34)(110,385)(64,136)(73,075)(25,712)(34,774)(71)(133,632)(137,062)

3,904(3,461)(7,365)69,022(60,675)(129,697)

B–A(3,430)Consolidated Balance Sheet(In millions of yen)
FY ’16 (A)(ended Mar.
31, 2016)(Assets)
Current assets
Cash and cash equivalents
Trade receivables
Inventories
Prepaid expenses and other current assets
Long-term trade receivables
Investments
Net property, plant and equipment
Other assets
Total assets(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 other comprehensive income (loss)
Treasury stock at cost
Noncontrolling interests
Total equity
Total liabilities and equity
Balance of Debt
Accumulated other comprehensive income (loss):
Foreign currency translation adjustments
Pension liability adjustments
Unrealized gains on securities
Unrealized gains (losses) on derivative
instruments

7/14

FY ’17 Q1 (B)(ended Jun.
30, 2016)

B–A

2,551,863
574,170
1,035,168
644,127
298,398
4,661
537,706
712,599
253,1124,059,941

2,392,168
595,138
791,535
679,555
325,940
4,069
486,280705,091
259,689
3,847,297(159,695)
20,968(243,633)
35,42827,542(592)(51,426)(7,508)6,577(212,644)

1,507,943
116,532
773,714617,697
287,507229,750
97,2382,122,438

1,386,252
117,404
691,854
576,994
286,085
251,655
91,1902,015,182(121,691)
872(81,860)(40,703)(1,422)
21,905(6,048)(107,256)

1,838,773
175,820
211,999
1,502,027(50,699)(374)
98,7301,937,503
4,059,941

1,738,541
175,820
211,931
1,506,300(154,288)(1,222)
93,574
1,832,115
3,847,297(100,232)
–
(68)
4,273
(103,589)(848)(5,156)(105,388)(212,644)

404,039

403,489(550)

39,847(184,231)
93,742(57)(20,943)(199,069)
65,816(92)(60,790)(14,838)(27,926)(35)

Consolidated Cash Flow Statement(In millions of yen)

I
1
2

II
1
2
3
4
5
I + II
III
1
2
3
4
5
6

IV
V
VI
VII

Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash
provided by operating activities(1) Depreciation of tangible fixed assets and other(2) Decrease in trade receivables(3) Decrease (increase) in inventories(4) Increase (decrease) in trade payables(5) Other, net
Net cash provided by operating activities
Cash flows from investing activities
Capital expenditure
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 (net of cash disposed)
Other, net
Net cash used in investing activities
Free cash flow
Cash flows from financing activities
Proceeds from long-term debt
Repayment of long-term debt
Increase (decrease) in bank loans, net
Dividends paid
Purchase of treasury stock
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

8/14

FY ’16 Q1(Apr. 1, 2015 –Jun. 30, 2015)(A)

FY ’17 Q1(Apr. 1, 2016 –Jun. 30, 2016)(B)

49,67946,249(3,430)31,754200,224(53,769)(84,802)(43,167)
99,91929,083
202,504(64,909)(66,841)(36,868)
109,218(2,671)
2,280(11,140)
17,961
6,299
9,299(39,169)707(34,291)
1,413

4,878
706

(1,006)(1,010)

(4)

1,281

15,315

14,034(1,779)(39,966)
59,953(4,110)(22,683)
86,535(2,331)
17,283
26,582–(2,818)(1,421)(38,642)(16)(779)(43,676)45(3,049)2,570(38,642)(1,097)(954)(41,127)

45
(231)
3,991
0
(1,081)
(175)
2,549

2,694

(24,440)(27,134)

18,971
568,517
587,488

20,968574,170
595,138

1,997
5,653
7,650

B–A

Consolidated Segment Information
1. Sales and Operating Income by Business Segment(In millions of yen)
FY ’16 Q1(Apr. 1, 2015 –Jun. 30, 2015)
Business Segment

FY ’17 Q1(Apr. 1, 2016 –Jun. 30, 2016)
C–A

D–B

C/A
(%)

Sales (A)Operatingincome(loss) (B)

Sales (C)Operatingincome(loss) (D)Energy and Electric Systems
Industrial Automation
Systems
Information andCommunication Systems
Electronic Devices

236,681(6,666)238,051

3,926

1,370

10,592

101

328,350

42,867302,227

32,421(26,123)(10,446)92

95,409(1,755)73,525(3,179)(21,884)(1,424)

77

66,117

12,33239,080959(27,037)(11,373)

59

Home Appliances
Others254,092
163,190

16,244903

261,925
156,390

31,7862,643

7,833(6,800)15,542
1,740

103
96

1,143,839(155,399)

63,925(9,293)

1,071,198(144,121)

68,556(8,852)(72,641)
11,278

4,631
441

94
–

988,440

54,632927,077

59,704(61,363)

5,072

94

Subtotal
Eliminations and other
Total*Notes: Inter-segment sales are included in the above chart.

2. Sales and Operating Income by Location(In millions of yen)

Location

FY ’16 Q1(Apr. 1, 2015 –Jun. 30, 2015)
OperatingSales (A)income (B)FY ’17 Q1(Apr. 1, 2016 –Jun. 30, 2016)
OperatingSales (C)income (D)

C–A

D–B

C/A
(%)

Japan
North America

758,371
112,155

26,815
1,076

694,715
102,125

17,946
3,613(63,656)(10,030)(8,869)
2,537

92
91

Asia (excluding Japan)
Europe289,551
104,298

29,0184,202

261,776
110,693

29,394
4,151(27,775)
6,395

376
(51)

90
106

OthersSubtotal

12,276
1,276,651

207
61,31811,007
1,180,316

443
55,547(1,269)(96,335)

236(5,771)

90
92

Eliminations
Total(288,211)
988,440(6,686)54,632(253,239)
927,077

4,157
59,704

34,972(61,363)

10,843
5,072–
94*Notes: Inter-segment sales are included in the above chart.

9/14

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

Location of Customers

FY ’16 Q1(Apr. 1, 2015 –Jun. 30, 2015)

B–A

B/A
(%)

499,505% of total
net sales
50.5

112,816

11.4

101,52910.9(11,287)90

256,604

26.0

230,218

24.8(26,386)

90

97,86821,6479.9
2.2

103,496
20,246

11.2
2.2

5,628
(1,401)

10694

488,935
988,440

49.5
100.0

455,489
927,077

49.1
100.0

(33,446)(61,363)

93
94

Sales (A)Japan
North AmericaAsia(excluding Japan)
EuropeOthersTotal overseas sales
Consolidated total

FY ’17 Q1(Apr. 1, 2016 –Jun. 30, 2016)

471,588% of total
net sales
50.9(27,917)

94

Sales (B)

Cautionary Statement
The Mitsubishi Electric Group (hereafter “the Group”) is involved in development, manufacture and sales ina wide range of fields including Energy and Electric Systems, Industrial Automation Systems, Information
and Communication 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 thestatements herein are based on certain assumptions and premises that the Company trusts and considers to bereasonable under the circumstances on the date of announcement, actual operating results are subject to change
due to any of the factors as contemplated hereunder and/or any additional factor unforeseeable as of the date ofthis announcement. Such factors materially affecting the expectations expressed herein shall include but are
not limited to the following:(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 purchasesof imported materials that are denominated in U.S. dollars or euros, as well as its Asian production bases’
sales of exported products and purchases of imported materials that are denominated in foreign currencies.
(3) Stock markets
A fall in stock market prices may cause Mitsubishi Electric to record devaluation losses on marketablesecurities, or cause an increase in retirement benefit obligations in accordance with a decline in the fairvalue of 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.

10/14

(7) Environmental legislation or relevant issues
The Group may incur losses or expenses owing to changes in environmental legislation or the occurrenceof environmental 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
and market 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 andother unpredictable incidents that lead to the loss or leakage of personal information held by the Groupor confidential information regarding the Group’s business such as its technology, sales and otheroperations.
(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 over 90 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 ofelectrical and electronic equipment used in information processing and communications, space development
and satellite communications, consumer electronics, industrial technology, energy, transportation andbuilding 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 with technology. The company recorded consolidated group sales of 4,394.3 billion yen(US$ 38.8 billion*) in the fiscal year ended March 31, 2016. For more information visit:
www.MitsubishiElectric.com*At an exchange rate of 113 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on
March 31, 201611/14

【Supplementary Materials】
July 28, 2016
Mitsubishi Electric Corporation

Fiscal 2017 First Quarter Consolidated Results

1. Financial Results
2. Net Sales by Segment
3. Operating Income by Segment
4. Overseas Net Sales by Segment
5. Foreign Exchange Rates for Recording Net Sales andImpact of Exchange Rate Fluctuations on Net Sales

12/14

FY ’16: Apr. 1, 2015 – Mar. 31, 2016
FY ’17: Apr. 1, 2016 – Mar. 31, 2017
1. Financial Results(Consolidated)(Billions of yen, year-on-year % change)

FY '16
Q1(Actual)FY '17

1st Half(Actual)

Full Year(Actual)Q1(Actual)

Full Year(Forecast)

1st Half(Forecast)

Net sales

988.4

(+9)

2,063.2(+5)

4,394.3

(+2)

927.0

(-6)

1,960.0(-5)

4,180.0(-5)

Operating income

54.6

(-8)

127.0

(+5)

301.1

(-5)

59.7

(+9)

90.0

(-29)

235.0

(-22)

Income before income taxes

67.1

(-1)

133.0

(-9)

318.4

(-1)

61.0

(-9)

100.0

(-25)

255.0

(-20)

Net income attributable to Mitsubishi
Electric Corp.

46.3

(+8)

92.9

(-5)

228.4

(-3)

42.9

(-7)

70.0

(-25)

175.0

(-23)

Figures in parentheses in the right column indicate change from the previous corresponding period.

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

FY '16
Q1(Actual)FY '17

1st Half(Actual)

Full Year(Actual)Q1(Actual)

Full Year(Forecast)

1st Half(Forecast)

Energy and Electric Systems

236.6

(+6)

523.7

(+4)

1,264.6

(+3)

238.0

(+1)

520.0

(-1)

1,210.0

Industrial Automation Systems

328.3

(+11)

661.5

(+9)

1,321.9

(+3)

302.2

(-8)

610.0

(-8)

1,250.0(-5)

Information and Communication Systems

95.4

(+3)

224.0

(-10)

561.1

(0)

73.5

(-23)

200.0

(-11)

460.0

(-18)

Electronic Devices

66.1

(+29)

123.2

(+16)

211.5

(-11)

39.0

(-41)

80.0

(-35)

170.0

(-20)

Home Appliances

254.0

511.1

(+7)

982.0

(+4)

261.9

(+4)

1,020.0

(+4)

163.1

338.4

(-4)

707.7

(-4)

156.3

320.0

(-5)

690.0

(-3)

2,382.1(+4)

5,049.0(+1)

1,071.1

(+3)
(-4)
(-6)

530.0

Others

(+8)
(-3)
(+7)

2,260.0(-5)

4,800.0

(-5)

(+9)

2,063.2(+5)

4,394.3(-6)

1,960.0(-5)

4,180.0

Subtotal

1,143.8

Eliminations-155.3

Consolidated total

988.4-318.8-654.6-144.1(+2)-300.0

927.0

(-4)

-620.0(-5)

3. Operating Income by Segment(Billions of yen, year-on-year % change)

FY '17

FY '16
Q1(Actual)

1st Half(Actual)

Full Year(Actual)Q1(Actual)

1st Half(Forecast)

Full Year(Forecast)

Energy and Electric Systems

-6.6

(-)

3.7

(-70)

50.3

(-31)

3.9

(-)

5.0

(+33)

49.0

(-3)

Industrial Automation Systems

42.8

(+22)
(-)

83.9

(+27)

159.1

(+9)

32.4

58.0

(-31)

124.0

(-22)

-3.8

(-)

14.9

(-21)

-3.1

(-24)
(-)

-4.0

(-)

8.0

(-47)

(+110)

16.8

(-44)

0.9

(-92)

0.0

(-)

3.0

(-82)

(+96)
(+193)
(+7)

40.0

(+21)

63.0

(-1)

6.0

(-19)

18.0

(-24)

105.0

(-25)

265.0

(-19)

Information and Communication Systems-1.7

Electronic Devices

12.3(+220)

16.3

Home Appliances

16.2

33.1

(-6)

63.8

(+18)

31.7

Others

0.9

(-24)
(-47)
(-6)

7.3

(-11)

23.6

(-1)

2.6

140.7

(+4)

328.8

(-5)

68.5

Subtotal

63.9

Eliminations and other-9.2

Consolidated total

54.6

-13.7
(-8)

-27.6

127.0

(+5)

-8.8

301.1

(-5)

-15.0

59.7

(+9)

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

FY '17

FY '16
Q1(Actual)

1st Half(Actual)Q1(Actual)

Full Year(Actual)Energy and Electric Systems

107.0

(+13)

221.6

(+11)

458.9

(-1)

98.3

(-8)

Industrial Automation Systems

201.1

(+19)

390.8

(+14)

755.5

(+3)

178.2

(-11)

Information and Communication Systems

4.0(+134)

12.5(+101)

46.3(+164)

2.7(-32)

Electronic Devices

27.1

(+10)

52.0

(+3)

98.5

(-5)

22.1

(-18)

Home Appliances

145.9

(+12)
(-28)
(+15)

273.3

(+12)

499.6

150.5

7.3

(-25)

14.1

(+12)

1,873.1

(+5)
(-24)
(+3)

(+3)
(-6)
(-7)

Others

3.6
Consolidated total

Ratio of overseas net sales to total sales

488.9

49.5%

957.7

46.4%

13/14

42.6%

3.4
455.4

49.1%

90.0

-30.0
(-29)

235.0

(-22)

5. Foreign Exchange Rates for Recording Net Sales and Impact of Exchange Rate Fluctuations on Net Sales
FY '16

Exchange rates forrecording net sales

Impact of exchange rate
fluctuations on net sales

FY '17

Q1(Actual)

1st Half(Actual)

Full Year(Actual)Q1(Actual)Q2 or after(Forecast)

US$

¥121

¥122

¥121

¥111

¥105

Euro

¥133

¥135

¥133

¥125

¥115

Consolidated total

About ￥54.0 billion About ￥83.0 billion About ￥60.0 billion About ￥59.0 billion
increaseincreaseincreasedecrease

US$

About ￥26.0 billion About ￥40.0 billion About ￥47.0 billion About ￥13.0 billion
increaseincreaseincreasedecrease

Euro

About ￥3.0 billion
decrease

About ￥4.0 billion About ￥14.0 billion About ￥10.0 billion
decreasedecreasedecrease

14/14